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GS Paper: GS3

  • GST Slab Changes

    Customers will have to pay a 5% Goods and Services Tax (GST) on pre-packed, labelled food items such as atta, paneer and curd, besides hospital rooms with rents above ₹5,000.

    What is GST?

    • GST launched in India on 1 July 2017 is a comprehensive indirect tax for the entire country.
    • It is charged at the time of supply and depends on the destination of consumption.
    • For instance, if a good is manufactured in state A but consumed in state B, then the revenue generated through GST collection is credited to the state of consumption (state B) and not to the state of production (state A).
    • GST, being a consumption-based tax, resulted in loss of revenue for manufacturing-heavy states.

    What are GST Slabs?

    • In India, almost 500+ services and over 1300 products fall under the 4 major GST slabs.
    • There are five broad tax rates of zero, 5%, 12%, 18% and 28%, plus a cess levied over and above the 28% on some ‘sin’ goods.
    • The GST Council periodically revises the items under each slab rate to adjust them according to industry demands and market trends.
    • The updated structure ensures that the essential items fall under lower tax brackets, while luxury products and services entail higher GST rates.
    • The 28% rate is levied on demerit goods such as tobacco products, automobiles, and aerated drinks, along with an additional GST compensation cess.

    Why rationalize GST slabs?

    • From businesses’ viewpoint, there are just too many tax rate slabs, compounded by aberrations in the duty structure through their supply chains with some inputs taxed more than the final product.
    • These are far too many rates and do not necessarily constitute a Good and Simple Tax.
    • Multiple rate changes since the introduction of the GST regime in July 2017 have brought the effective GST rate to 11.6% from the original revenue-neutral rate of 15.5%.
    • Merging the 12% and 18% GST rates into any tax rate lower than 18% may result in revenue loss.

     

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  • Public Capex Plan key to long-term growth: FM

    Finance Minister said India’s long-term growth prospects were embedded in public capital expenditure programs.

    What is the news?

    • FM has raised capital expenditure (capex) by 35.4% for the financial year 2022-23 to ₹7.5 lakh crore to continue the public investment-led recovery of the pandemic-battered economy.
    • The capex last year was ₹5.5 lakh crore.

    What is Capital Expenditure (Capex)?

    • The government’s expenditure is categorized into two:
    1. The one which results in asset development or acquisition known as CAPEX,
    2. Another is utilized to cover operating costs and obligations but does not result in asset creation known as Revenue expenditure.
    • Capex is defined the as money spent on the acquisition of assets such as land, buildings, machinery, and equipment, as well as stock investments.

    What attributes to capex?

    • The portion of government payments that goes toward the construction of assets such as schools, colleges, hospitals, roads, bridges, dams, railway lines, airports, and seaports amounts to capex.
    • The acquisition of new weaponry and weapon systems, such as missiles, tanks, fighter planes, and submarines, necessitates a significant financial outlay.
    • The defense sector receives over a third of the central government’s capital spending, primarily for armament acquisitions.
    • Despite the fact that defense spending is classified as a capital expenditure, it does not result in the development of infrastructure to support economic growth.
    • Also includes investments that will produce earnings or dividends in the future.

    Significance of Capex

    • Economic recovery: This action is crucial in light of the economic slowdown induced by the Covid-19 epidemic, as well as a dip in the employment ratio.
    • Value creation: Capital asset formation provides future cash flows for the economy and contributes to value creation.
    • Multiplier Effect: Capex is expected to have a Multiplier Effect (a change in rupee value of output with respect to a change in rupee value of expenditure).
    • Increased employment: Capital spending creates jobs and improves labor productivity as a result of the multiplier effect.
    • Macroeconomic Stabilizer: Capital Expenditure serves as a macroeconomic stabilizer and is an excellent instrument for countercyclical fiscal policy.

     

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  • Political tussle over Podu Cultivation and Forest Lands in Telangana

    Activists have taken up the issue of Podu cultivation of adivasis and tribals in forest areas in Telangana.

    What one means by Podu?

    • Podu is a traditional system of cultivation used by tribes in India, whereby different areas of jungle forest are cleared by burning each year to provide land for crops.
    • It is a form of shifting agriculture using slash-and-burn methods. The word comes from the Telugu language.
    • Traditionally used on the hill-slopes of Andhra Pradesh, it is similar to the jhum method found in north-east India and the bewar system of Madhya Pradesh.

    What is the ‘Podu’ Land Issue?

    • The Telangana government had decided in 2021 to move landless, non-tribal farmers engaged in shifting cultivation inside forests to peripheral areas in an effort to combat deforestation.
    • It ensured that all steps would be taken to ensure that forest land was not encroached upon.
    • It is observed that podu progressively degrades large areas of the forest.

    Shifting cultivation in India

    • In this type of agriculture, first of all a piece of forest land is cleared by felling trees and burning of trunks and branches.
    • After the land is cleared, crops are grown for two to three years and then the land is abandoned as the fertility of the soil decreases.
    • The farmers then move to new areas and the process is repeated.
    • Dry paddy, maize, millets and vegetables are the crops commonly grown in this type of farming.

    This practice is known by different names in different regions of India:

    1. Jhum in Assam,

    2. Ponam in Kerala,

    3. Podu in Andhra Pradesh and Odisha and

    4. Bewar masha penda and Bera in various parts of Madhya Pradesh.

     

    What TS has to offer as alternative to Podu?

    • To stop this deforestation, the government wants to move out cultivators from deep inside forests to the periphery by allotting them land for cultivation.
    • Tribal farmers who have been traditionally cultivating for decades would not be affected by this drive against illegal encroachers.
    • The land ownership titles have been given to tribals and more than 3 lakh acres have been allocated to tribal farmers state-wide.

    And what about non-tribal farmers?

    • These farmers can apply to the state government to allocate them land outside the forests.
    • Those who are moved out of the forests would be given land ownership certificates, power and water supplies and Rythu Bandhu benefits.

    Back2Basics: Rythu Bandhu

    • Rythu Bandhu is a scheme under which the state government extends financial support to land-owning farmers at the beginning of the crop season through direct benefit transfer.
    • The scheme aims to take care of the initial investment needs and do not fall into a debt trap.
    • This in turn instills confidence in farmers, enhances productivity and income, and breaks the cycle of rural indebtedness.

    DBT under the Scheme

    • Each farmer gets Rs 5,000 per acre per crop season without any ceiling on the number of acres held.
    • So, a farmer who owns two acres of land would receive Rs 20,000 a year, whereas a farmer who owns 10 acres would receive Rs 1 lakh a year from the government.
    • The grant helps them cover the expenses on input requirements such as seeds, fertilizers, pesticides, and labor.

     

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  • Pradhan Mantri Fasal Bima Yojana (PMFBY)

    Andhra Pradesh has decided to rejoin the crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) from the ongoing kharif season.

    Why in news?

    • Andhra Pradesh was one of six states that have stopped the implementation of the scheme over the last four years.
    • The other five, which remain out, are Bihar, Jharkhand, West Bengal, Jharkhand, and Telangana.

    What is PMFBY?

    • The PMFBY was launched in February 2016. It is being administered by Ministry of Agriculture.
    • It provides a comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the farmers.
    • It is implemented by general insurance companies.

    Its functioning

    • PMFBY insures farmers against all non-preventable natural risks from pre-sowing to post-harvest.
    • Farmers have to pay a maximum of 2 per cent of the total premium of the insured amount for kharif crops, 1.5 per cent for rabi food crops and oilseeds as well as 5 per cent for commercial / horticultural crops.
    • The balance premium is shared by the Union and state governments on a 50:50 basis and on a 90:10 basis in the case of northeastern states.

    Farmers covered

    • All farmers growing notified crops in a notified area during the season who have insurable interest in the crop are eligible.
    • Earlier to Kharif 2020, the enrolment under the scheme was compulsory for following categories of farmers:
    1. Farmers in the notified area who possess a Crop Loan account/KCC account (called as Loanee Farmers) to whom credit limit is sanctioned/renewed for the notified crop during the crop season. and
    2. Such other farmers whom the Government may decide to include from time to time.

    Risks covered under the scheme

    • Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as Natural Fire and Lightning, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado.
    • Risks due to Flood, Inundation and Landslide, Drought, Dry spells, Pests/ Diseases also will be covered.
    • Post-harvest losses coverage will be available up to a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field.
    • For certain localized problems such as loss/damage resulting from the occurrence of identified localized risks like hailstorm, landslide, and Inundation affecting isolated farms in the notified area would also be covered.

    Why many states has opted out?

    The opting-out states had mentioned several reasons:

    • The scheme should be voluntary.
    • States should be given options to choose the risks covered and the scheme should be universal.
    • State should be given option to use their own database of E-crop, an application used by the state government to collect information about crops.
    • Many state government wanted zero premium for farmers (meaning the entire premium should be paid by the government.
    • The non-payment of the State Share of premium subsidy within the prescribed timelines as defined in the seasonality discipline lea to the disqualification of the State Government.
    • The reason for West Bengal not implementing the PMFBY is purely “political” as it wants to implement the scheme without mentioning Pradhan Mantri in the name.

    How was the scheme structured, and what has changed since?

    • Initially, the scheme was compulsory for loanee farmers; in February 2020, the Centre revised it to make it optional for all farmers.
    • Now states and UTs are free to extend additional subsidy over and above the normal subsidy from their budgets.
    • In February 2020, the Centre decided to restrict its premium subsidy to 30% for unirrigated areas and 25% for irrigated areas (from the existing unlimited). Earlier, there was no upper limit.
    • Food crops (cereals, millets and pulses); oilseeds; and annual commercial / annual horticultural crops are broadly covered under the scheme.

     

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  • Increase in Current Account Deficit (CAD)

    The Finance Ministry has asserted that the current account deficit (CAD) could, however, deteriorate this year mainly due to rising trade deficits.

    What is Current Account Deficit (CAD)?

    • A current account is a key component of balance of payments, which is the account of transactions or exchanges made between entities in a country and the rest of the world.
    • This includes a nation’s net trade in products and services, its net earnings on cross border investments including interest and dividends, and its net transfer payments such as remittances and foreign aid.
    • A CAD arises when the value of goods and services imported exceeds the value of exports, while the trade balance refers to the net balance of export and import of goods or merchandise trade.

    Components of Current Account

    Current Account Deficit (CAD) = Trade Deficit + Net Income + Net Transfers

    (1) Trade Deficit

    • Trade Deficit = Imports – Exports
    • A Country is said to have a trade deficit when it imports more goods and services than it exports.
    • Trade deficit is an economic measure of a negative balance of trade in which a country’s imports exceeds its exports.
    • A trade deficit represents an outflow of domestic currency to foreign markets.

    (2) Net Income

    • Net Income = Income Earned by MNCs from their investments in India.
    • When foreign investment income exceeds the savings of the country’s residents, then the country has net income deficit.
    • This foreign investment can help a country’s economy grow. But if foreign investors worry they won’t get a return in a reasonable amount of time, they will cut off funding.
    • Net income is measured by the following things:
    1. Payments made to foreigners in the form of dividends of domestic stocks.
    2. Interest payments on bonds.
    3. Wages paid to foreigners working in the country.

    (3) Net Transfers

    • In Net Transfers, foreign residents send back money to their home countries. It also includes government grants to foreigners.
    • It Includes Remittances, Gifts, Donation etc

    How Current Account Transaction does takes place?

    • While understanding the Current Account Deficit in detail, it is important to understand what the current account transactions are.
    • Current account transactions are transactions that require foreign currency.
    • Following transactions with from which component these transactions belong to :
    1. Component 1 : Payments connection with Foreign trade – Import & Export
    2. Component 2 : Interest on loans to other countries and Net income from investments in other countries
    3. Component 3 : Remittances for living expenses of parents, spouse and children residing abroad, and Expenses in connection with Foreign travel, Education and Medical care of parents, spouse and children

    What has been the recent trend?

    • In Q4 FY 2021-22, CAD improved to 1.5% of GDP or $13.4 billion from 2.6% of GDP in Q3 FY 2021-22 ($22.2 billion).
    • The difference between the value of goods imported and exported fell to $54.48 million in Q4FY 2021-22 from $59.75 million in Q3 FY2021-22.
    • However, based on robust performance by computer and business services, net service receipts rose both sequentially and on a year-on-year basis.
    • Remittances by Indians abroad also rose.

    What are the reasons for the current account deficit?

    • Intensifying geopolitical tensions and supply chain disruptions leading to crude oil and commodity prices soaring globally have been exerting upward pressure on the import bill.
    • A rise in prices of coal, natural gas, fertilizers, and edible oils have added to the pressure on trade deficit.
    • However, with global demand picking up, merchandise exports have also been rising.

    How will a large CAD affect the economy?

    • A large CAD will result in demand for foreign currency rising, thus leading to depreciation of the home currency.
    • Nations balance CAD by attracting capital inflows and running a surplus in capital accounts through increased foreign direct investments (FDI).
    • However, worsening CAD will put pressure on inflow under the capital account.
    • Nevertheless, if an increase in the import bill is because of imports for technological upgradation it would help in long-term development.

     

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  • Govt. extends RoSCTL Scheme for Garment Exports

    The RoSCTL scheme will continue for export of garments/apparels, and made-ups till March 31, 2024, according to a press release from the Union Ministry of Textiles.

    What is RoSCTL Scheme?

    • RoSCTL stands for Rebate of State and Central Taxes and Levies (RoSCTL).
    • It is an export incentive in the form of transferable and sellable duty credit scrips (certificate) offered on the basis of the value of the export.
    • It replaces the Rebate of State Levies (RoSL) scheme, a monetary incentive scheme under which Customs would deposit the rebate directly into the exporter’s bank account.
    • This scheme was seen as India’s reaction to the increasing international pressure on export incentives provided by the Indian government.

    Why was this scheme introduced?

    • The US, in particular, has been very vocal, urging the discontinuation of export incentive schemes like the Merchandise Exports from India Scheme (MEIS).
    • It held that they flouted the WTO Agreement on Subsidies and Countervailing Measures.

    Why was this scheme extended to textile sector?

    • With a view to boost exports and job creation in the textile sector, the government has approved the continuation of the scheme.
    • The scheme aims to help them cut high logistics and other costs and enable them to compete globally.

     

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  • India’s imports from China rose to a record in first half of 2022

    India’s imports from China reached a record $57.51 billion in the first half of the year, according to China’s trade figures.

    India-China Bilateral Trade

    • China is India’s largest trading partner.
    • Major commodities imported from China into India were: electronic equipment; machines, engines, pumps; organic chemicals; fertilizers; iron and steel; plastics; iron or steel products; gems, precious metals, coins; ships, boats; medical, and technical equipment.
    • Major commodities exported from India to China were: cotton; gems, precious metals, coins; copper; ores, slag, ash; organic chemicals; salt, sulfur, stone, cement; machines, engines, and pumps.

    Recent measures to curb imports from China

    • Blame it on the pandemic and the border dispute, but the result is the same: some Indian businesses are boycotting China.
    • The government is now asking Indian e-commerce companies like Flipkart and Amazon India to label country of origin for all products sold on its websites.
    • The govt banned many Chinese mobile applications, including top social media platforms such as TikTok, Helo and WeChat and games such as PUBG.

    Can we completely boycott Chinese products?

    • Trade deficits are not necessarily bad: Both Indian consumers and Chinese producers are gainers through trading.
    • Will hurt the Indian poor the most: This is because the poor are more price-sensitive.
    • Will punish Indian producers and exporters: Several businesses in India import intermediate goods and raw materials, which, in turn, are used to create final goods — both for the domestic Indian market as well as the global market.
    • Pharma sector could be worst hit: For instance, of the nearly $3.6 billion worth of ingredients that Indian drug-makers import to manufacture several essential medicines, China catered to around 68 per cent.
    • Will barely hurt China: According to the United Nations Conference on Trade and Development (UNCTAD) data for 2018, 15.3% of India’s imports are from China, and 5.1% of India’s exports go to China.
    • Chinese money funds Indian unicorns: India and China have also become increasingly integrated in recent years.
    • India will lose policy credibility: It has also been suggested that India should renege on existing contracts with China.

    Way forward

    • In the long term, under the banner of self-reliance, India must develop its domestic capabilities and acquire a higher share of global trade by raising its competitiveness.
    • The government’s “Atmanirbhar” focus is expected to help ministries handhold industries where self-reliance needs to be built.
    • For the long run, a more effective strategy needs to be built to provide an ecosystem that addresses the cost disability of Indian manufacturing leading to such imports.

     

    We would love to see you attempting these questions. Post your answer snaps in the comment box.

     

    Q. India’s quest for self-reliance is still a distant dream. Critically comment in light of the popular sentiment against the Chinese imports in India.

     

    Q.“Curbing Chinese imports to India will do more harm than any good”. Analyse.

     

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  • India & FTA

    Context

    In recent months, India has signed trade agreements with Australia and UAE. n the last week of June, New Delhi began talks for a similar agreement with the EU.

    How FTA with EU could help India

    • India’s successful sectors like textiles, pharmaceuticals and leather could benefit from these deliberations, which would also be keenly watched by representatives of the services and renewable energy sectors.
    • A successful free trade agreement (FTA) with the EU could help India to expand its footfall in markets such as Poland, Portugal, Greece, the Czech Republic and Romania, where the country’s exports registered double-digit annual growth rates in the last decade.

    So, what are the factors India need to consider while signing FTA

    1] Impact of tariff on domestic industry:

    • It has been observed that when India is an importer, the preferential tariffs that accrue as a result of trade agreements are significantly lower than the rates charged from countries given Most Favoured Nation (MFN) status by India.
    • But when the partner country is the importer, preferential tariffs on Indian goods, in most cases, are closer to the MFN tariffs.
    • As a result, Indian exporters do not get the same returns as their counterparts in the partner countries.
    • India’s trade with South Korea is a case in point.
    • Before entering into a trade agreement care should, therefore, be taken to ensure that the domestic industry is not made to compete on unequal terms with the partner countries.

    2] Adherence to the rules of origin

    • The India-UAE Comprehensive Economic Partnership Agreement sets a good example.
    • It includes a strong clause on the rules of origin.
    • Forty per cent value addition or substantial processing of up to 40 per cent in the exporting country is required to qualify for lower tariffs.
    • Rules of origin have been a bone of contention in most Indian trade agreements.
    • (CAROTAR, 2020): In 2020, the country notified the Customs (Administration of Rules of Origin under Trade Agreements) Rules (CAROTAR, 2020), which require a basic level of due diligence from the importer.

    3] Including the offset clauses

    • “Offset clauses” — where the exporter is obliged to undertake activities that directly benefit the importing country’s economy — should be built into trade agreements, especially for technology intensive sectors.

    4] Emergency action plan

    •  In February 2020, the US made India ineligible for claims under GSP, America’s oldest preferential trade scheme.
    • The US Trade Representative’s Office deemed India as a developed country and suspended beneficial treatment under the GSP.
    • A contingency plan should be in place to tackle such situations.

    5] Inclusion of sunset clause

    • India should also take a cue from the US-Mexico-Canada Agreement, to incorporate a “sunset” clause in trade agreements.
    • The pact between the three North American nations provides for periodic reviews and the agreement is slated to end automatically in 16 years unless the countries renegotiate it.

    6] Parity between services and merchandise

    • India should negotiate for parity between services and merchandise.
    • Low trade in services: India’s trade in services is low, and its overall score in the OECD’s Services Trade Restrictiveness Index (STRI) exceeds the world average.
    • It is especially high in legal and accounting services due to the licencing requirements in both these segments.
    • Expansion in banking and financial services: There is also significant room for expansion of trade in the banking and financial services industry.

    Conclusion

    A well-crafted trade agreement could help India enhance its share in global trade and help attain the government’s target of making the country a $5-trillion economy.

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    Back2Basics: CAROTAR Rules

    • Importers will have to do their due diligence to ensure that imported goods meet the prescribed ‘rules of origin’ provisions.
    • This is the essential availing concessional rate of customs duty under free trade agreements (FTAs).
    • A list of minimum information, which the importer is required to possess, has also been provided in the rules along with general guidance.
    • Also, an importer would now have to enter certain origin related information in the Bill of Entry, as available in the Certificate of Origin.

    Why need CAROTAR?

    • CAROTAR 2020 supplements the existing operational certification procedures prescribed under different trade agreements.
    • India has inked FTAs with several countries, including Japan, South Korea and ASEAN members.
    • Under such agreements, two trading partners significantly reduce or eliminate import/customs duties on the maximum number of goods traded between them.
    • The new rules will assist customs authorities in the smooth clearance of legitimate imports under FTAs.
  • Bonn meet

    Context

    From June 6-16, representatives from more than 100 countries descended on Bonn to hold preliminary discussions on what could be the final communiqué at the conclusion of COP27, to be held at Sharm-el-Sheikh later this year.

    Key takeaways from the discussion

    • Centred on climate finance: Discussions were centred around climate finance and there was hardly any convergence of issues.
    • No convergence: The developed and developing countries or for that matter, big polluters and small polluters, were speaking from the ends of the spectrum with no meeting ground.
    • Focus on adaptation and mitigation: Much of the discussion was around “loss and damage”, which was being experienced by many of the smaller countries, especially with big coastlines, due to rising river levels, loss of agricultural productivity, loss of livelihoods, etc.
    • The idea to provide assistance for “loss and damage” was opposed by the US and the EU.
    • Need for alternative funding: The Green Climate Fund is considered too cumbersome and the process too lengthy.
    • Hence, the need for an alternate funding route was imperative.
    • It was argued that one needs to look into this issue right now and provide financial assistance to cope with it.
    • This brings into focus the debate between adaptation and mitigation.
    • The demand of the developing countries for a provision of climate finance at a scale much higher than $100 billion a year fell on deaf ears.
    • Incidentally, the figure of $100 billion was arrived at arbitrarily and that too way back in 2009.

    Mitigation Vs Adaptation debate

    • More funding directed toward mitigation: It is generally felt that whatever funding has come for climate change issues has mostly been directed towards mitigation.
    • This is primarily because mitigation projects have a cost-benefit analysis and, therefore, it is easy to lend money because you can get it back through interest payments.
    • Cost-benefit analysis: This is primarily because mitigation projects have a cost-benefit analysis and, therefore, it is easy to lend money because you can get it back through interest payments.
    • Mitigation would mean, for example, setting up solar generation units to avoid carbon footprint.
    • Cost-benefit analysis is difficult for adaptation projects, which would be in the form of grants.

    Actions needed to limit the temperature rise to 1.5 degree Celsius

    • 2.4°C by NDC: The Nationally Determined Contributions (NDCs), as on date, are good enough to limit temperature rise to 2.4 degrees centigrade, provided all the targets are met.
    • 1.8°C with net-zero commitment: In addition, if countries also meet their net-zero commitments by 2050, the temperature rise will still be around 1.8 degrees centigrade.
    • 1.5°C:  To limit the temperature rise to 1.5 degrees centigrade, emissions will have to be cut down by half by 2030.
    • The Alliance of Small Island States (AOSIS) expressed the view that to be more meaningful, the aim should be to reduce emissions by 20 per cent by 2025 itself.
    • The logic is that the next round of NDCs is due only in 2025 and by that time, it would be too late to formulate a plan that is achievable by 2030.

    Issue of using remaining carbon space

    • The use of the remaining carbon space available to limit temperature rise to 1.5 degrees centigrade, a highly contentious issue, was also discussed in Bonn.
    • The US resisted being labelled as a “big emitter” and was not willing to take responsibility for its historical emissions.
    • There is no single estimate of how much carbon space is really available as on date, but broad indications are that at the given emissions rate, it would be roughly 10 years.
    • The raging debate is how to distribute this available space equitably amongst countries, which would mean that someone has to take the burden of stiffer targets.
    • What the US wanted other big emitters like China and India take on greater responsibilities for cutting down emissions.
    • However, the like-minded group of developing countries (LMDCs) — which included China, India, Saudi Arabia and the Arab countries — were opposed to this.

    Conclusion

    If there was any hope that discussions at Bonn would provide an acceptable draft, which could be taken forward during COP27, it was misplaced.

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    Back2Basics: The Paris Agreement

    • The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016.
    • Its goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.
    • To achieve this long-term temperature goal, countries aim to reach global peaking of greenhouse gas emissions as soon as possible to achieve a climate-neutral world by mid-century.
    • It is a landmark process because, for the first time, a binding agreement brings all nations into a common cause to undertake ambitious efforts to combat climate change and adapt to its effects.
    • Implementation of the Paris Agreement requires economic and social transformation, based on the best available science.
    • The Agreement works on a 5- year cycle of increasingly ambitious climate action carried out by countries.
    • By 2020, countries submit their plans for climate action known as nationally determined contributions (NDCs).

    NDCs

    • In their NDCs, countries communicate actions they will take to reduce their Greenhouse Gas emissions in order to reach the goals of the Paris Agreement.
    • Countries also communicate in the NDCs actions they will take to build resilience to adapt to the impacts of rising temperatures.
  • James Webb Space Telescope

    NASA has unveiled images from the James Webb Space Telescope, the largest and most powerful orbital observatory ever launched.

    What is the image about?

    • NASA released a deep field photo of a distant galaxy cluster, SMACS 0723, revealing the most detailed glimpse of the early universe recorded to date.
    • The collection also included fresh images of another galaxy cluster known as Stephan’s Quintet, first discovered in 1877.

    James Webb Space Telescope

    • JWST is a joint NASA–ESA–CSA space telescope that is planned to succeed the Hubble Space Telescope as NASA’s flagship astrophysics mission
    • It is the most powerful space telescope ever built.
    • It will enable a broad range of investigations across the fields of astronomy and cosmology, including observing some of the most distant events and objects in the universe,
    • It would help understand events such as the formation of the first galaxies, and detailed atmospheric characterization of potentially habitable exoplanets.

    Its significance

    • Some have called JSWT the “telescope that ate astronomy.”
    • It is said to look back in time to the Dark Ages of the universe.

    What does the ‘Dark Ages’ of the universe mean?

    • Evidence shows that the universe started with an event called the Big Bang 13.8 billion years ago, which left it in an ultra-hot, ultra-dense state.
    • The universe immediately began expanding and cooling after the Big Bang.
    • One second after the Big Bang, the universe was a hundred trillion miles across with an average temperature of an incredible 18 billion F (10 billion C).
    • Around 400,000 years after the Big Bang, the universe was 10 million light-years across and the temperature had cooled to 5,500 F (3,000 C).
    • Throughout this time, space was filled with a smooth soup of high-energy particles, radiation, hydrogen and helium.
    • There was no structure. As the expanding universe became bigger and colder, the soup thinned out and everything faded to black.

    This was the start of what astronomers call the Dark Ages of the universe.

    How will JWST study this?

    Ans. Looking for the first light

    • The Dark Ages ended when gravity formed the first stars and galaxies that eventually began to emit the first light.
    • Astronomers aim to study this fascinating and important era of the universe, but detecting first light is incredibly challenging.
    • Compared to massive, bright galaxies of today, the first objects were very small and due to the constant expansion of the universe, they’re now tens of billions of light years away from Earth.
    • Also, the earliest stars were surrounded by gas left over from their formation and this gas acted like fog that absorbed most of the light.
    • It took several hundred million years for radiation to blast away the fog. This early light is very faint by the time it gets to Earth.

     

     

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