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  • In news: Small Savings Schemes

    The Central government raised interest rates on eight of the 12 small savings schemes by 20 to 110 basis points for the January to March 2023 quarter.

    Small Savings Schemes

    • Small Savings Schemes are a set of savings instruments managed by the central government with an aim to encourage citizens to save regularly irrespective of their age.
    • They are popular as they provide returns higher than bank fixed deposits, sovereign guarantee and tax benefits.

    How are they managed?

    • Since 2016, the Finance Ministry has been reviewing the interest rates on small savings schemes on a quarterly basis.
    • All deposits received under various schemes are pooled in the National Small Savings Fund.
    • The money in the fund is used by the Centre to finance its fiscal deficit.

    What are the different saving schemes?

    The schemes can be grouped under three heads –

    1. Post office deposits
    2. Savings certificates and
    3. Social security schemes

    (1) Post Office Deposits

    • Under this we have the savings deposit, recurring deposit and time deposits with 1, 2, 3 and 5 year maturities and the monthly income account.
    • The savings account currently pays an interest of 4% per annum and can be opened individually or jointly with an initial investment of Rs 500.
    • The recurring deposit that pays 5.8% a year compounded quarterly matures after 60 months from the date of opening.
    • It allows investors to save on a monthly basis with a minimum deposit of Rs 100 per month.
    • Investments under the 5-year time deposit up to Rs 1.5 lakh further qualifies for benefit under section 80C of Income Tax Act.

    (2) Savings Certificates

    • Under this, we have the National Savings Certificate and the Kisan Vikas Patra.
    • The National Savings Certificate pays interest at a rate of 6.8% per annum upon maturity after 5 years. The interest that is earned is reinvested into the scheme every year automatically.
    • The NSC also qualifies for tax saving under Section 80C of the income tax act.
    • The Kisan Vikas Patra, which is open to everyone, doubles your one-time investment at the end of 124 months signifying a return of 6.9% compounded annually.
    • The minimum investment amount is Rs 1000 while there is no upper limit.

    (3) Social security schemes

    • In the third head of social security schemes, there is Public Provident Fund, Sukanya Samriddhi Account and Senior Citizens Savings Scheme.
    1. Public Provident Fund
    • The Public Provident Fund is a popular saving option for long term goals like retirement.
    • It pays 7.1% a year and qualifies for tax benefit under Section 80C of the Income Tax Act.
    • Upon maturity of the account after 15 years, it can be extended indefinitely in blocks of 5 years.
    • The accumulated amount and interest earned are exempt from tax at the time of withdrawal.
    1. Sukanya Samriddhi Account
    • The Sukanya Samriddhi Account was launched in 2015 under the Beti Bachao Beti Padhao campaign exclusively for a girl child.
    • The account can be opened in the name of a girl child below the age of 10 years.
    • The scheme guarantees a return of 7.6% per annum and is eligible for tax benefit under Section 80C of the Income Tax Act.
    • The tenure of the deposit is 21 years from the date of opening of the account and a maximum of Rs 1.5 lakh can be invested in a year.
    1. Senior Citizen Savings Account
    • And finally, the 5-year ​​Senior Citizen Savings Account can be opened by anyone who is over 60 years to age.
    • It carries an interest of 7.4% per annum payable quarterly and qualifies for Section 80C tax benefit.
    • These time-tested and safe modes of investments don’t offer quick returns, but are safer when compared to market-linked schemes.

     

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  • What are Globular Clusters?

    cluster

    Astronomers and scientists at the Indian Institute of Astrophysics (IIA) while studying the Omega Centauri have found that hot stars and white dwarfs emitted less ultraviolet radiation than expected.

    Omega Centauri

    • It is the most massive globular cluster system in our galaxy.
    • It was first identified as a non-stellar object by Edmond Halley in 1677 and as globular star cluster orbiting Milky Way galaxy by John Herschel in 1830s.
    • It contains approximately 10 million stars and is about 16,000 light-years away.
    • It also includes stars of a variety of ages, whereas other globular clusters contain stars from only one generation.
    • It is the largest and brightest globular cluster in the Milky Way.

     What is a globular cluster?

    • A globular cluster is a spheroidal conglomeration of stars.
    • Globular clusters are bound together by gravity, with a higher concentration of stars towards their centres.
    • They can contain anywhere from tens of thousands to many millions of member stars.
    • They orbit mostly in the extended stellar halos surrounding most spiral galaxies.

    How are they formed?

    • No one knows precisely how globular clusters formed. Or what role, if any, they played in the development of galaxies.
    • We know globular clusters are the oldest, largest and most massive type of star cluster. And globular clusters contain the oldest stars.
    • Their age is determined by their almost complete lack of what astronomers call metals, the heavier elements forged in star interiors.

    Our Milky Way has over 150 globular clusters

    • Our own Milky Way has over 150 globular clusters, with perhaps more, hidden by galactic dust.
    • The Andromeda galaxy (M31), our neighboring spiral galaxy, appears to have around 300 globular clusters.

    Difference between a globular cluster and an open cluster

    • Globular clusters are big, symmetric and old. They can reach 300 light-years in diameter and contain 10 million stars.  On the other hand, open star clusters, contains sibling stars, scattered through the disk of our galaxy and presumably other galaxies.
    • Globular star cluster are very symmetrical in shape, and are densest toward their centers. Open star clusters are irregular in shape and loosely grouped together.
    • Globular clusters orbit in the halo of our galaxy. Plus, center around the galaxy’s core and expanding above and below the galactic disk. Open star clusters tend to orbit within the disk.
    • Globular star clusters contain million of stars. Yet some globular clusters, like Omega Centauri, contain millions of stars. Open star clusters contain only hundreds of stars.

     

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  • Place-Based Conservation Under CBD

    Conservation

    Context

    • At the 15th Conference of Parties (COP15) of the Convention on Biological Diversity (CBD), member countries adopted the “Kunming-Montreal Global Biodiversity Framework” (GBF) that includes four goals and 23 targets to be achieved by 2030.

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    Conservation

    What is target 30×30 among 23 targets?

    • Conservation through ecological representative: Among the 23 targets, Target 3, colloquially known as “30×30,” requires that “at least 30 percent of terrestrial, inland water, and coastal and marine areas, especially areas of particular importance for biodiversity and ecosystem functions and services, are effectively conserved and managed through ecologically representative.
    • Area-based conservation measures: Such area should be well-connected and equitably governed systems of protected areas and other effective area-based conservation measures.

    Assessment of protected areas

    • Protected area: Place-based conservation has usually taken the form of Protected Areas wherein human occupation or at least the exploitation of resources is limited. The definition provided by the International Union for Conservation of Nature (IUCN) in its categorisation guidelines for protected areas has been widely accepted across regional and global frameworks.
    • Different level of protection: There are several kinds of protected areas that vary by level of protection depending on the enabling laws of each country or the regulations of the international organisations involved.
    • Currently only 17% is protected: Currently, about 17 percent of terrestrial and 8 percent of marine areas are within documented protected and conserved areas.
    • Less than desirable quality: The quality of these areas has fallen far short of the commitments; less than 8 percent of land is both protected and connected. In the face of such a lacuna, the 30×30 target represents a significant commitment.

    What are the challenges towards conservation of biodiversity areas?

    • Improving the quality: One of the main challenges will be to improve the quality of both existing and new areas, as biodiversity continues to decline, even within many Protected Areas. Protected and conserved areas will need to be better connected to each other for movement of species, and for ecological processes to function.
    • Large countries have to take big steps: Demographically large, high population density countries, and the very high density small and city-states are unlikely be able to bring significant additional terrestrial, inland water, and coastal and marine areas under Protected Area management.
    • Addressing animal and human settlement: Moreover, species range shifts due to the effects of impacts of climate change will have to be taken into account. Challenges faced by Protected Areas that are experiencing coastal squeeze due to rising sea level on one side, and hard human settlements on the other will also have to be addressed.
    • Investment for management: All of these measures will require significant investments for effective management and community involvement, particularly those areas that harbour megafauna. The track record of the Global North, thus far, has been poor in meeting its commitments on financial support for climate and biodiversity initiatives.

    What should be the way forward?

    • Better connectivity: Innovative area-based conservation measures will have to be considered for better connectivity for movement of species megafauna in particular between protected and conserved areas. Areas adjoining and or connecting Protected Areas that are not formally managed for conservation will have to be considered for protection; agricultural lands.
    • Conservation development mechanism: Akin to the Clean Development Mechanism under the climate convention, UNFCCC, a carbon offset scheme allowing countries to fund greenhouse gas emissions-reducing projects in other countries and claim the saved emissions as part of their own efforts to meet international emissions targets.
    • Mobile protected areas: Innovative management will be required for Protected Areas that are experiencing coastal squeeze due to rising sea level on one side, and hard human settlements on the other. In high altitude and coastal areas, Protected Areas will have to be conceived as mobile rather than static, confined to a set of geographical coordinates. Mangrove and alpine ecosystems

    Conservation

    Conclusion

    • Only declaring the certain area as protected area will not improve the quality of protected area and it is mere a lip service to conservation efforts. Investment backed by effective, result oriented and time bound action plan for place-based conservation should be the path ahead.

    Mains Question

    Q. What is 30×30 target under CBD? What are the challenges in area-based conservation and suggest the way forward?

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  • Vibrant Village Programme (VVP)

    village

    Union Home Minister said that borders can be permanently secured only when border villages are populated by patriotic citizens who are concerned for the country, asking the border-guarding forces to use the Vibrant Village Programme (VVP) for the same.

    Vibrant Village Programme

    • The program aims to improve infrastructure in villages along India’s border with China.
    • Infrastructure will be improved in states like Uttarakhand, Himachal Pradesh, and Arunachal Pradesh.
    • Under the programme, residential and tourist centres will be constructed.
    • It will also provide for improvement in road connectivity and development of decentralized renewable energy sources.
    • Apart from that, direct access of Doordarshan and education related channels will be provided. Support will be provided for livelihood.

    Key focus areas

    • It focuses on livelihood generation, road connectivity, housing, rural infrastructure, renewable energy, television and broadband connections.
    • This objective will be met by strengthening infrastructure across villages located near the Line of Actual Control (LAC).

    Need for such scheme

    • The programme is a counter to China’s model villages but the name has been carefully chosen so as to not cause any consternation in the neighbouring country.
    • China has established new villages along the LAC in the past few years, particularly across the Arunachal Pradesh border.
    • While China has been settling new residents in border areas, villages on the Indian side of the frontier have seen unprecedented out-migration.

     

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  • India’s tech startups and the dearth of funding

    startups

    Context

    • The Indian government is emphasizing and celebrating its tech startups as an important component of its economic development policy. Prime Minister Modi recently pointed out that the number of Indian ‘unicorns’ technology startup companies with a valuation of US$ 1 billion or more has doubled since 2021. Some sectors within these startups, such as climate tech, do demonstrate strong promise.

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    startups

    Funding a major problem

    • Though India has emerged as the third largest ecosystem for startups, funding is becoming a growing problem, with the number of unicorns dropping by half in 2022.
    • One of the sectors that appear to be not doing very well is the Indian online tech startups.

    Present status of Indian tech startups

    • Good performance during the pandemic: These Indian tech startups did very well during the two-year-long pandemic. With the dramatic increase in work-from-home (WFH) office interactions, online consulting for various services but especially heathcare, online classes at schools and colleges and other educational centres, and other online services and platforms proliferate.
    • Indian techs became popular for online services: Overnight, technological solutions and electronic communications using virtual platforms, digital payments system, video consultations and edtech all became popular.
    • As people returning to normal lives Indian techs looks weak: But with the pandemic now relatively under control and people returning to normal lives, the future of Indian startups that provided online services is beginning to look bleak.
    • Negative assumptions: Going by recent media reports, the future of such tech startup companies is not so bright. Funds are drying up and not all startups are going to survive.
    • Global uncertainties adding up to the existing problems: Further, issues like the Russian invasion of Ukraine, a spike in global inflation rates, and fears of a possible recession have also brought down the prospects for many startups in general.

    Impact of shortage in funding to tech startups

    • Complete shutdown of many startups: Shortage of capital that is critical for the startups to sustain has led to cost-cutting measures with layoffs, mergers and consolidation and even complete shutdowns of some of them.
    • Shut down as it unable to find market fit product: According to Inc42, a tech media platform, eight startups shut shop in 2022. These include Matrix Partners-backed SaaS startup, Protonn, which closed its operations in January 2022 since it was unable to find the right product-market fit.
    • For instance, the funding case of Protonn: Protonn was a Bengaluru and San Francisco-based startup, focused on providing its platform to professionals such as lawyers, graphic designers and nutritionists to launch their businesses online, create videos, conduct live sessions, generate payment links, and track their business’s financial performance. The company had raised US$9 million in seed funding. The company, founded by former Flipkart executives, Anil Goteti and Mausam Bhatt, returned US $ 9 million to its investors.

    startups

    Problem faced by edtch startups in a post pandemic world

    • A case of edtech startup Uday: Uday ended its operations in April this year. The Gurgaon-based startup had difficulties finding ways to stay in business in the post-pandemic world. The startup co-founder, Soumya Yadav stated that the company was witnessing the post-pandemic world for the first time, as the kids went back to school, we faced roadblocks in growing the original model of online, live learning. We evaluated multiple different strategies and adjacent pivots however none of them were promising enough.
    • Financial crunch and laying off the employees by well-established edtechs: Edtech startups such as Vedantu and Unacademy are also facing severe financial crunch, leading to hundreds of layoffs or shutting down certain verticals.
    1. Vedantu for instance: Earlier in the year, Vedantu laid off around 620 employees. Unacademy, earlier in the year, shut down its medical test preparation vertical, USMLE.
    2. Unacademy laying off its verticle: As of November, Unacademy has done three rounds of layoffs, starting with 600-800 employees from its sales and marketing team.
    3. Byjus: Byju’sa rival of Unacademy has also felt the pinch and is reported to have laid off close to 2,500 employees.
    4. SuperLearn: Another startup in the education sector, a Bengaluru-based SuperLearn, shut its operations in June because of “a dearth of funds and diminishing investor confidence.”

    Other positive side of the startups

    • Biotech and healthcare startups did well: While the edtech is possibly the worst hit, startups in the biotech and healthcare sector and e-commerce and fintech may not be as badly affected in the coming year.
    • Healthcare startups not only survived but also benefitted: Several startups gained from the inadequacy of the Indian healthcare system and thus phenomena like online pharmacy, healthcare-at-home services, and fitness and wellness companies have sprung up and they are likely to stay.
    • Funds received by healthcare startups will be helpful: Healthcare startups reportedly received funds of around US$2.2 billionn across 131 deals. They also appear to have found an appealing business model that might help them pull on with reasonable success in the coming years.

    Way ahead

    • Nevertheless, there is a likelihood that after seeing a boom and a significant spike in the demand in these sectors in the last two years, there may be some balancing in the next two years.
    • Another possible way that startups will deal with the financial crunch, lack of adequate response is to consolidate the several different edtech and e-commerce platforms and so, one could expect a few merger and acquisition to come through in the coming years.
    • Enterprisetech sector saw some of this playing out already. Startups, at least within a few exclusive sectors, have gained fair amount of prominence and appears that they are here to stay despite the possibility of a rough couple of years until issues around funds and market are evened out.

    Conclusion

    • It is evident that not only the economic crisis caused closures, but growing businesses in post-pandemic conditions was proving to be a challenge. Overall, Indian tech startups therefore suggest a mixed picture. Strong government support is positive but business model and market competition issues need to be addressed.

    Mains question

    Q. Indian edtech startups are witnessing financial crunch however, healthcare start-ups are benefitting in a post pandemic world. Therefore, Indian tech startups suggest a mixed picture. Discuss.

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  • India’s first Waste-to-Hydrogen Project

    Hydrogen

    Context

    • India assumed the Presidency of the Group of 20 this December. The world’s third largest emitter is moving beyond a transition strategy based squarely on solar development by branching out into emerging fields such as hydrogen.

    Present Energy status and future Predictions

    • Only country to keep promise: India is one of the few countries that has kept to its Paris Agreement (21st Conference of Parties or COP21 to the United Nations Framework Convention on Climate Change) commitments, with an exponential increase in renewable energy capacity.
    • Energy through renewables: It is anticipated that by 2050, 80-85 per cent of India’s overall power capacity will come from renewables by achieving the nationally determined contributions commitments.
    • Reducing the fossil fuel: India had committed to increasing the share of non-fossil fuels to 40 per cent of the total electricity generation capacity by 2030.

    Hydrogen

    Potential of hydrogen energy

    • 6 million tonnes hydrogen: India consumes about six million tonnes of hydrogen annually to produce ammonia and methanol in industrial sectors, including fertilisers and refineries.
    • Rising demand of hydrogen: This could increase to 28 million tonnes by 2050, principally due to the rising demand from the industry.

    Efforts to promote Green Hydrogen

    • Search for technology to generate: Ever since the Union Ministry of New and Renewable Energy (MNRE) shared that it is time for green hydrogen, private players have been looking for new technologies to generate it.
    • Electrolyser is inefficient: With the challenges of electrolyser capacity for generating green hydrogen globally, finding alternatives to foster green hydrogen in the country is essential.
    • Incentives from central government: The central government, the prime facilitator of such projects, has been coming up with new initiatives, policies and schemes to unleash the potential of green hydrogen generation and boost its demand.
    • Rational utilization of resources: The long-term low-emission development strategy of the country submitted to UNFCCC at COP27 focused on the rational utilisation of national resources for energy security in a just, smooth and sustainable manner.

    Idea proposed by Pune Municipal Commission

    • Partnership with private player: PMC has partnered with business management consultant The Green Billions (TGBL) to manage its waste and generate it into useable green hydrogen. TGBL’s special purpose vehicle or subsidiary, Variate Pune Waste to Energy Private Ltd, will be undertaking the work.
    • Waste management: The new facility for generating hydrogen from waste will solve major problems of Inefficient waste management and carbon emissions. Waste management is one of the prime issues in the country, which is blamed for generating pollution in the surroundings.
    • Reducing carbon emissions: Pune, the second largest city in Maharashtra, hosts many industries, including steel, fertilisers and pharmaceutical industries. The emissions in the city increased by 12 per cent to 1.64-tonne carbon dioxide equivalent (tCO2Eq) per capita in 2017 from 1.46 tonne tCO2Eq per capita in 2012.

    Hydrogen

    How Hydrogen will be generated?

    • Hydrogen generation for 30 years: Variate Pune Waste to Energy Private Ltd will be managing and utilising the municipal waste of 350 tonnes per day (TPD) for generating hydrogen for 30 years. This waste will comprise biodegradable, non-biodegradable and domestic hazardous waste.
    • Plasma gasification technology: The Refuse-Derived Fuel (RDF) from the waste would later be utilised to generate hydrogen using plasma gasification technology. The technology has been developed while closely working with the Bhabha Atomic Research Institute (BARC) and the Indian Institute of Science, Bengaluru.
    • 9MT Tonnes of H2: It is estimated that 150TPD RDF and 9MT tonnes of H2 would be generated out of 350 TPD waste.
    • Decarbonising the city: The hydrogen generated at the facility will be utilised locally to help the city lower its emissions. As the Centre is focusing on industrial decarbonisation and facing the challenges of just transition, the project can prove to be a game-changer in helping industries reduce carbon emissions.

    Hydrogen

    Conclusion

    • In India, where the hydrogen industry is nascent, it is imperative to keep the cost of hydrogen competitive to expand its usage in various sectors. TGBL will work on the same by making hydrogen affordable and easier to switch in the just-transition.
  • The world of Cyberspace and Cyber sovereignty

    Cyber sovereignty

    Context

    • A state’s desire to control ‘cyberspace’ within its borders is achieved by exercising what is called ‘cyber sovereignty’. While some countries such as the United States (US) support the free flow of information, others like China, by default, restrict the flow for its citizens, leading to the fragmentation of the internet.

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    What is mean by Cyber threat?

    • A cyber threat or cyber security threat is defined as a malicious act intended to steal or damage data or disrupt the digital wellbeing and stability of an enterprise.
    • Cyber threats include a wide range of attacks ranging from data breaches, computer viruses, denial of service, and numerous other attack vectors.

    What is cyberspace?

    • Defined by Cyber security expert Daniel Kuehl: cyberspace is a global domain within the information system whose distinctive and unique character is framed by the use of electronics and the electromagnetic spectrum to create, store, modify, exchange, and exploit information via independent and interconnected networks using information-communication technologies.
    • Traditionally three layers of cyberspace: Traditionally, cyberspace was understood only in three layers: the physical/hardware, neural/software, and data.
    • Forth layer of social interaction and sovereignty: Alexander Klimburg, in his book The Darkening Web, introduced a fourth layer that deals with the social interaction among the three layers: “If cyberspace can be said to have a soul or mind, this is where it is. Establishing control over all the layers is necessary to build sovereignty in cyberspace.

    Cyber sovereignty

    What is Cyber sovereignty?

    • Term coined by Bruce Schneir: One of the leading voices in internet governance, Bruce Schneier, has coined the term as the attempt of governments to take control over sections of the internet within their borders.
    • It is about Internet governance: The term cyber sovereignty stems from internet governance and usually means the ability to create and implement rules in cyberspace through state governance.
    • Cyber sovereignty does not necessarily mean governance by state: Cyber sovereignty does not necessarily have to mean governance by a state. It first and foremost refers to the ability to create and implement rules in cyberspace. Alternatively, one could say it refers to the authority to speak the law, i.e., having juris-diction, in cyberspace.
    • Technology that drives policy decisions: In contrast to other technologies whose development is driven by policy, here it is technology which drives policy decisions. These characteristics make cyberspace governance complex and lead to confrontations among states and other stakeholders.

    Whether states should be held accountable for cyber-attacks emanating from their territory?

    • Sovereignty as defined by ICJ: The International Court of Justice (ICJ) defines sovereignty as that which confers rights upon states and imposes obligations on them. This implies that states must control their cyber infrastructure and prevent it from being knowingly or unknowingly used to harm other states and non-state actors.
    • Who comes under the cyber sovereignty ambit: The state, or the citizens of the state, if involved in attacking other states or non-state actors’ cyber facilities, also come under the ambit of cyber sovereignty.

    Cyber sovereignty

    Implications of Cyber sovereignty

    • Cyber sovereignty restricts the free flow of information: The internet was created to promote the free flow of information, but cyber sovereignty works the other way around. Restricting the flow of information can also put global businesses at risk due to the lack of interoperability it leads to.
    • It may lead to data imperialism: Control over the data could lead to new forms of colonialism and imperialism, commonly referred to as ‘data colonisation’ and ‘data imperialism’ in the digital era. States and private players can overreach their powers and violate human rights through cyberspace surveillance, controlling information flow, and enforcing internet shutdowns.
    • Implications from the fragmentation of the internet to violation of human rights: The implications are broad, impinging on citizens’ rights such as privacy, freedom of expression, access to information, press freedom, freedom of belief, non-discrimination and equality, freedom of assembly, freedom of association, due process and personal security.
    • For instance: Access to geolocation data can give insights into people who participated in a protest. Further, based on a user’s online behaviour, it is possible to determine a person’s sexual orientation, political affiliation and religious beliefs.

    Cyber sovereignty

    Example to understand the Implication of cyber sovereignty

    • In 2009, seeking justice for their co-workers whom the Han Chinese killed in a doll factory, Uighurs, a Muslim minority community in China, organised a protest using Facebook and Uighur-language blogs.
    • Following this incident, Facebook and Twitter were blocked across the country, and the internet was shut down for ten months in the region.
    • Following the incident, the Chinese government, with the help of the private sector, developed AI-enabled applications like the Integrated Joint Operations Platform (Ijop) to monitor the daily activities of Uighur Muslims. This app obtains information like skin colour, facial features, properties owned, payments, and personal relationships, and reports if there are any suspicious activities. An investigation is initiated if the systems flag any person. Data is gathered 24/7 to carry out mass surveillance.

    Value addition notes: Consider these for Essays

    • Unlike other spaces such as land, sea, air, and outer space, cyberspace was created by humans; therefore, complete control can be established over it.
    • Countries have tried to frame policies and rules to regulate cyberspace by building the necessary infrastructure.
    • This can be seen as either a defensive mechanism that states use to protect their own critical infrastructure or a framework adopted to exploit other states’ resources.
    • It has led to a security dilemma and added fuel to the fire of great-power politics.
    • Realising its importance, states have started to see cyberspace as equivalent to physical territory, and are building virtual walls to protect their ‘cyber territory’ with the help of various technologies.

    Conclusion

    • It is often said that information is wealth, competition has developed between states, and between state and non-state actors, to control and access this wealth. The dichotomy of states trying to protect the data generated in their territory by introducing data protection laws but, simultaneously, wanting to exploit other states’ data is adding to the complexity.

    Mains question

    Q. Technological advancements have made cyberspace an integral part of human lives. In this context, what do you understand by Cyber sovereignty. Discuss the implications of cyber sovereignty.

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  • Cotton textiles: India was/is/ and will be a leader in sustainable production

    cotton

    Context

    • When we look back at Indian handlooms, what is certain is that the craft world has changed, not in the slow-paced gradual way of changes in the past, but much faster than before. India can be a world leader in the sustainable production of cotton textiles.

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    cotton

    Background: Indian handlooms

    • Supplier from the ancient times: The weavers of India have supplied the markets of the world with cotton cloth since at least the first century of the Common Era.
    • Fine varieties of cotton were the source of wealth: In pre-industrial times, the many varieties of Indian cotton cloth bafta, mulmul, mashru, jamdani, moree, percale, nainsukh, chintz, etc were the source of India’s fabled wealth.
    • Spun by hand: Until colonial times, the yarn for handloom weaving in India had been spun by hand.
    • Invention of spinning machines: With the invention of spinning machinery in Britain and the import of machine-spun cotton yarn, this occupation vanished.

    cotton

    Impact of colonial policies on Indian handlooms

    • Economic policies dictated by British: Since India was a British colony, the British dictated its economic policies.
    • Raw material exported while machine made fabric imported: Machine-woven cotton fabrics began to be imported, while raw cotton was shipped out to supply British industry.
    • Variety of cotton from India was not suitable for machinery, so they forced uniformity: Though Indian varieties of cotton produced the finest fabrics the world has yet seen, the famous Dhaka muslins, they were unsuited to the newly invented textile machinery, while American cotton varieties that have a longer, stronger staple, were more suited to machine processing. The machines needed a uniform kind of cotton, so the hundreds of varieties of Indian cotton which had been bred over centuries now had to become uniform. Diversity, until then valued, became a handicap.
    • By 1947 uniform production established and variety lost: By 1947, mass production was well established, and India’s own spinning and weaving mills took over the role of Lancashire. American cotton varieties and their hybrids gradually replaced native ones, so now, native varieties grow only in a few pockets

    What did this mean for Indian cotton farmers?

    • New practices changed the nature of production from sustainable to commercial: Cotton in India is grown largely by small farmers, and the new practices have changed the nature of farm practices from sustainable, family-based agriculture to intensive commercial farming with severe and tragic consequences.
    • Seeds from companies were expensive: Seeds come from large multinationals, rather than the farmer’s own stock, and are expensive.
    • Desi varieties of seeds were rainfed lost rapidly: While the desi varieties were rain-fed, the American varieties need irrigation, which increases humidity. Humidity encourages pests and fungi.
    • Cost of cultivation increased with use of fertilizers: A cocktail of chemicals fertiliser, pesticide and fungicide is used which adds to the cost of cultivation, but does not guarantee a good harvest.
    • Debt increased farmers misery: The farmer runs up huge debts hoping for a good crop, but India’s weather is variable, groundwater is fast depleting. If the crop fails, the risks are entirely the farmer’s. The distress of the cotton farmer has even led to suicides. The introduction of genetically-modified seeds has led to more severe problems.

    Relationship between energy shift and the cotton production

    • Renewable energy in 21st century: Just as energy from fossil fuels ushered in the era of mass production in the 19th century, it will be clean, renewable energy that will take the small-scale environmental Indian industries to the top of the heap in the 21st century.
    • Emphasis for low energy manufacturing: As fossil fuels deplete, earlier notions of efficiency will change, and low-energy manufacturing processes will gain value.
    • Handwoven fabrics will gain importance again: At the same time, markets are becoming saturated with look-alike products from factory-style mass production, and there are more customers for the individualised products dispersed production can offer. Small-batch handwoven fabrics will become desirable in the changing markets.

    cotton

    Interesting: Malkha a sustainable fabric

    • Malkha is pure cotton cloth made directly from raw cotton in the village close to cotton fields and combines traditional Indian principles of cloth making with modern small-scale technology.
    • Malkha is energy efficient, avoids baling and unbaling of cotton by heavy machinery and unnecessary transport.
    • It provides an alternative to the mass production of cotton yarn.
    • Malkha has also added natural dyeing of yarn to make its fabrics even more sustainable.

    Conclusion

    • The world is looking for green industries. Over the next 25 years, as independent India turns 100, handloom weaving located close to cotton fields can make it a world leader in sustainable production.

    Mains question

    Q. The weavers of India have supplied the markets of the world with cotton cloth since at least the first century of the Common Era. In this context Discuss the impact of British policies on Indian handloom.

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  • What is Social Stock Exchange (SSE)?

    social

    The National Stock Exchange of India (NSE India) received an in-principle approval from the Securities Exchange Board of India (SEBI) to set-up Social Stock Exchange (SSE) as a separate segment.

    What is Social Stock Exchange (SSE)?

    • SSE is a novel idea in India, and a stock exchange of this kind is intended to benefit the private and non-profit sectors by directing more capital to them.
    • During her Budget speech for the fiscal year 2019–20, Finance Minister first proposed the concept of SSE.
    • The Securities Contracts (Regulation) Act, 1956 was then invoked by the government, which subsequently published a gazette notification announcing a new security as “zero coupon zero principal”.
    • The SSE will function as a distinct division of the current stock exchanges under the new regulations.

    Who can list on SSE?

    • The SSE will be a distinct division of the current stock exchanges under the new regulations.
    • Not-for-profit organisations (NPOs) and for-profit social enterprises with social intent and impact as their primary goal will be eligible to participate in the SSE.
    • Additionally, such an intent should be shown by its emphasis on social goals that are appropriate for under-served or less privileged populations or areas.
    • The social enterprises will have to engage in a social activity out of 16 broad activities listed by the regulator.

    The eligible activities include-

    1. Eradicating hunger poverty, malnutrition and inequality
    2. Promoting healthcare, supporting education, employability and livelihoods
    3. Gender equality empowerment of women and LGBTQIA communities
    4. Supporting incubators of social enterprise

    Who are not eligible?

    • Corporate foundations, political or religious organisations or activities, professional or trade associations, infrastructure companies, and housing companies, with the exception of affordable housing, will not be eligible to be identified as social enterprises.
    • According to SEBI’s framework, minimum issue size of ₹1 crore and a minimum application size for subscription of ₹2 lakh are currently required for SSE.

    Minimum requirements for sustenance

    • NPO needs to be registered as a charitable trust and should be registered for at least three years, must have spent at least ₹50 lakh annually in the past financial year.
    • They should have received a funding of at least ₹10 lakh in the past financial year.

     

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  • Amrit Bharat Station Scheme

    The Ministry of Railways, as part of its station redevelopment drive, has formulated Amrit Bharat Station Scheme to modernize over 1,000 small stations over the coming years.

    Amrit Bharat Station Scheme

    • Under this, stations will be equipped with facilities inspired by the mega-upgradation of marquee stations such as New Delhi and Ahmedabad, albeit at a lower cost.
    • Key features of these proposed stations include provisions for roof top plazas, longer platforms, ballast-less tracks, and 5G connectivity.
    • The scheme will subsume all previous redevelopment projects where work is yet to begin.

    Implementation strategy

    • The model envisages low-cost redevelopment of stations which can be executed timely.
    • Zonal railways have been given the responsibility of selecting stations, which will then be approved by a committee of senior railway officials.
    • Plans and consequent budgets will only be approved on the basis of factors such as footfall and inputs from stakeholders.

    Facilities Planned under this Scheme

    • Provision for Roof Plaza to be created in future
    • Free Wi-Fi, space for 5G mobile towers
    • Smooth access by widening of roads, removal of unwanted structures, properly designed signages, dedicated pedestrian pathways, well-planned parking areas, improved lighting etc.
    • High level platforms (760-840 mm) at all stations with a length of 600 metres
    • Special amenities for the disabled

     

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