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GS Paper: GS3

  • Logistics Ease Across Different States (LEADS) Report, 2021

    The Logistics Ease Across Different States (LEADS) 2021 Index Rankings has been recently released.

    About LEADS

    • The LEADS index was launched in 2018 by the Commerce and Industry Ministry and Deloitte.
    • It ranks states on the score of their logistics services and efficiency that are indicative of economic growth.
    • States are ranked based on quality and capacity of key infrastructure such as road, rail and warehousing as well as on operational ease of logistics.

    Highlights of the 2021 report

    • India’s logistics costs account for 13-14 per cent of GDP, compared to 7-8 per cent in developed countries.
    • Gujarat, Haryana and Punjab have emerged as the top performers in the LEADS 2021 index respectively.
    • West Bengal, Rajasthan, Madhya Pradesh, Goa, Bihar, Himachal Pradesh and Assam were ranked 15th, 16th, 17th, 18th, 19th, 20th and 21st respectively.
    • North Eastern States, and J&K and Ladakh have been considered a separate group for LEADS rankings.

     

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  • What is Leonid’s Meteor Shower?

    The annual Leonid’s Meteor Shower has begun.

    Try this question from CSP 2014:

    Q.What is a coma, in the content of astronomy?

    (a) Bright half of material on the comet

    (b) Long tail of dust

    (c) Two asteroids orbiting each other

    (d) Two planets orbiting each other

     

    [wpdiscuz-feedback id=”8v5gmesm0l” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

    What is Leonid Meteor Shower?

    • Meteor showers are named after the constellation they appear to be coming from.
    • The Leonids originate from the constellation Leo the Lion– the groups of stars that form a lion’s mane.
    • They emerge from the comet Tempel-Tuttle, which requires 33 years to revolve once around the Sun.
    • These meteors are bright and among the fastest moving– travelling at speeds of 71 km per second.
    • During this year’s showers, peaks of around 10 to 15 meteors are expected to be seen every hour.
    • The Leonid showers include fireballs– bright and large meteors than can last longer than average meteors, and “earthgazers”– meteors which appear close to the horizon with colourful and long tails.

    What is a meteor shower?

    • On its journey around the Sun, the Earth passes through large swathes of cosmic debris.
    • The debris is essentially the remnants of comets — great frigid chunks of matter that leave behind dirty trails of rocks and ice that linger long after the comets themselves have passed.
    • As the Earth wades through this cloud of comet waste, the bits of debris create what appears from the ground to be a fireworks display in the sky — known as a meteor shower.
    • Several meteor showers can be seen around the year. According to NASA, over 30 meteor showers occur annually and are observable from the Earth.

    Back2Basics:

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  • Froth formation in Yamuna

    The visuals of devotees taking a dip in the froth-filled waters of the Yamuna River sent chills down the spine of the residents of Delhi.

    What is Froth Formation?

    • This is a phenomenon that takes place on many lakes and streams.
    • Foam bubbles are produced when organic matter decomposes.
    • These foam-producing molecules have one end that repels water and another that attracts water and they work to reduce the surface tension on the surface of the water.
    • These foam bubbles are lighter than water, so they float on the surface as a thin film that gradually accumulates.

    What causes the froth?

    • The presence of phosphates and surfactants in untreated sewage from Delhi, Haryana and Uttar Pradesh is a major reason behind frothing.
    • While these two components comprise of 1 per cent, the remaining 99 percent is air and water.

    What are the sources of pollution that cause foam formation?

    • Untreated sewage may contain soap-detergent particles.
    • The other sources are industrial effluents, organic matter from decomposing vegetation, and the presence of filamentous bacteria.
    • The pollution from the sugar and paper industries in Uttar Pradesh also causes pollution in the Yamuna.

    What are its health hazards?

    • Short-term exposure can lead to skin irritation and allergies.
    • If ingested, these chemicals may cause gastrointestinal problems and diseases like typhoid.
    • Long-term exposure to heavy metals in industrial pollutants can cause neurological issues and hormonal imbalances.

     

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  • International law as a means to advance national security interests

    Context

    Military experts, international relations academics, and practitioners like retired diplomats dominate the debates on global security in India. International lawyers are largely absent in these debates despite security issues being placed within the framework of international law.

    Using international law to further security interests

    In recent times, several examples demonstrate India’s failure to use an international law-friendly vocabulary to articulate its security interests.

    • First, India struck the terror camps in Pakistan in February 2019, after the Pulwama attack India did not invoke the right to self-defence; rather, it relied on a contested doctrine of ‘non-military pre-emptive action’.
    • Second, after the Pulwama attack, India decided to suspend the most favoured nation (MFN) status of Pakistan.
    • Under international law contained in the General Agreements on Tariffs and Trade, countries can deviate from their MFN obligations on grounds of national security.
    • Instead of suspending the MFN obligation towards Pakistan along these lines, India used Section 8A(1) of the Customs Tariff Act, 1975, to increase customs duties on all Pakistani products to 200%.
    • The notification on this decision did not even mention ‘national security’.
    • Third, India wishes to deport the Rohingya refugees who, it argues, pose a security threat.
    • India’s argument to justify this deportation is that it is not a signatory to the Refugee Convention.
    • This is a weak argument since India is bound by the principle of non-refoulment.
    • National security is one of the exceptions to the non-refoulment principle in international refugee law.
    • If India wishes to deport the Rohingya, it should develop a case on these lines showing how they constitute a national security threat.
    • Fourth, to put pressure on the Taliban regime to serve India’s interest, India has rarely used international law.
    •  India could have made a case for the South Asian Association for Regional Cooperation (SAARC) using its implied powers under international law to temporarily suspend Afghanistan from SAARC’s membership.

    Reasons for international law remaining at the margins

    • First, there is marginal involvement of international lawyers in foreign policymaking.
    • The Legal and Treaties Division of the Ministry of External Affairs, which advises the government on international law matters, is both understaffed and largely ignored on policy matters.
    • Second, apart from the External Affairs Ministry, there are several other Ministries like Commerce and Finance that also deal with different facets of international law.
    • They have negligible expertise in international law.
    • Third, there has been systemic neglect of the study of international law.
    • Fourth, many of the outstanding international law scholars that India has produced prefer to converse with domain experts only.

    Way forward

    • If India wishes to emerge as a global power, it has to make use of ‘lawfare’ i.e., use law as a weapon of national security.
    • To mainstream international law in foreign policymaking, India should invest massively in building its capacity on international law.

    Conclusion

    Notwithstanding the central role that international law plays in security matters, India has failed to fully appreciate the usage of international law to advance its national security interests.

     

    Back2Basics: Non-refoulement principle

    • The principle of non-refoulement constitutes the cornerstone of international refugee protection.
    • It is enshrined in Article 33 of the 1951 Convention, which is also binding on States Party to the 1967 Protocol.
    • Article 33(1) of the 1951 Convention provides:

    “No Contracting State shall expel or return (“refouler”) a refugee in any manner whatsoever to the frontiers of territories where his [or her] life or freedom would be threatened on account of his [or her] race, religion, nationality, membership of a particular social group or political opinion.”

  • India now ahead of China in financial inclusion metrics: SBI report

    India is now ahead of China in financial inclusion metrics, with mobile and Internet banking transactions rising to 13,615 per 1,000 adults in 2020 from 183 in 2015.

    What does one mean by Financial Inclusion?

    • Financial inclusion is defined as the availability and equality of opportunities to access financial services.
    • It refers to a process by which individuals and businesses can access appropriate, affordable, and timely financial products and services.
    • These include banking, loan, equity and insurance products etc.

    Key highlights of the Report

    • Boosted by PM Jan-Dhan Yojana, the number of bank branches per 100,000 adults in India rose to 14.7 in 2020 from 13.6 in 2015.
    • It is higher than Germany, China and South Africa.
    • Data shows that states with higher Jan-Dhan accounts balances have seen a perceptible decline in crime.

    How did India achieve financial inclusion?

    • Financial inclusion policies have a multiplier effect on economic growth, reducing poverty and income inequality, while also being conducive for financial stability.
    • India has stolen a march in financial inclusion with the initiation of PMJDY accounts since 2014.
    • It was enabled by a robust digital infrastructure and also careful recalibration of bank branches and thereby using the BC model judiciously.
    • Such financial inclusion has also been enabled by use of digital payments.

    What is the BC Model?

    • The report highlighted that the Banking Correspondent (BC) model in India is enabled to provide a defined range of banking services at low cost.
    • The new branch authorisation policy of 2017 –recognises BCs that provide banking services for a minimum of 4-hours per day and for at least 5-days a week as banking outlets.
    • The BCs are enabled to provide a defined range of banking services at low cost and hence are instrumental in promoting financial inclusion.
    • This has progressively done away the need to set up brick and mortar branches.

     

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  • Turmeric Cultivation in India

    Turmeric (Curcuma longa), native to India, has been studied extensively for its effects against viral diseases in recent decades, but the COVID-19 pandemic has renewed interest.

    About Turmeric

    • Turmeric (Curcuma longa) is used as a condiment, dye, drug and cosmetic in addition to its use in religious ceremonies.
    • India is a leading producer and exporter of turmeric in the world.
    • The top five turmeric-producing states of India in 2020-21 are Telangana, Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh.

    Climate and Soil

    • Turmeric can be grown in diverse tropical conditions from sea level to 1500 m above sea level.
    • It requires a temperature range of 20-35 C with an annual rainfall of 1500 mm or more, under rainfed or irrigated conditions.
    • Though it can be grown on different types of soils, it thrives best in well-drained sandy or clay loam soils with a pH range of 4.5-7.5 with good organic status.

    Varieties

    • A number of cultivars are available in the country and are known mostly by the name of locality where they are cultivated.
    • Some of the popular cultivars are Duggirala, Tekkurpet, Sugandham, Amalapuram, Erode local, Salem, Alleppey, Moovattupuzha and Lakdong.

    Preparation of land

    • The land is prepared with the receipt of early monsoon showers.
    • The soil is brought to a fine tilth by giving about four deep ploughings.
    • Planting is also done by forming ridges and furrows.

    Plantation

    • Whole or split mother and finger rhizomes are used for planting and well-developed healthy and disease-free rhizomes are to be selected.

    Why turmeric?

    • Post pandemic, turmeric is one of the fastest-growing dietary supplements.
    • The global curcumin market, valued at $58.4 million in 2019, is expected to witness a growth of 12.7 percent by 2027.
    • As the world’s largest producer, consumer and exporter of turmeric, India stands to gain from this.

    Global standing

    • India produces 78 per cent of the world’s turmeric.
    • The country’s turmeric production saw a near consistent growth since Independence till 2010-11 after which it started fluctuating.
    • The pandemic has given a boost to the crop, with the production witnessing a rise of 23 per cent.
    • Though the production and export of turmeric has risen, farmers have not benefitted from its pricing.

    Try this PYQ from CSP 2020:

    With reference to the current trends in the cultivation of sugarcane in India, consider the following statements:

    1. A substantial saving in seed material is made when ‘bud chip settlings are raised in a nursery and transplanted in the main field.
    2. When direct planting of setts is done, the germination percentage is better with single-budded setts as compared to setts with many buds.
    3. If bad weather conditions prevail when setts are directly planted, single-budded setts have better survival as compared to large setts.
    4. Sugarcane can be cultivated using settlings prepared from tissue culture.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 3 only

    (c) 1 and 4 only

    (d) 2,3 and 4 only

     

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  • Principles of Responsible Banking (PRBs)

    Global banks are pledging to report annually on the carbon emissions linked to the projects they lend to in an extension to the Principles for Responsible Banking (PRBs).

    What are PRBs?

    • The PRBs are a unique framework for ensuring that signatory banks’ strategy and practice align with the vision society has set out for its future in the SDGs and the Paris Climate Agreement.
    • It was created in 2019 through a partnership between founding banks and the United Nations.
    • The framework consists of 6 Principles designed to bring purpose, vision and ambition to sustainable finance.
    • Signatory banks commit to embedding these 6 principles across all business areas, at the strategic, portfolio and transactional levels:

    Note: India’s YES BANK Limited is the only Indian signatory to this framework.

    Significance of the PRBs

    • Banks can contribute to solving the climate crisis from two angles: their lending and their investments.
    • Many bank policies concentrate their investments on securities that were focused on sustainability.

    Issues with PRB

    • Being a signatory to the PRBs is a limited commitment.
    • Signatories have four years to comply with the principles.
    • Even then, everything is voluntary and non-binding, so signatories are not penalized or even named and shamed for failing to live up to the principles.

    Way forward

    • When signatories to the PRBs are lending money, they are supposed to carry out environmental impact assessments and to measure the greenhouse gas emissions of projects.
    • This is not a minor issue considering that such work is beyond the traditional competencies of banks and will significantly affect their operational costs.
    • Signatories are also supposed to ensure that loans go to projects that are carbon neutral.

     

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  • India’s power discoms are at a critical point

    Context

    The power sector in India is at an inflection point. Three developments are triggering a shift across the power chain, generation and distribution in particular, and are in the process deepening existing faultlines, and exacerbating the distress.

    Three changes driving the shift in power sector

    1) Central government’s approach towards distribution segment

    • Till recently, the Centre had preferred to incentivise states, nudging them to address the issue that lies at the heart of the power sector’s woes — turning around the operational performance and financial position.
    • However, despite multiple attempts, not much has changed.
    • But over the past few months, the Centre appears to have changed tack.
    • The Centre no longer appears content to simply nudge states into acting.
    • This change in stance is evident from enforcing the tripartite agreement to recover the dues owed to power producers like NTPC by discoms in Jharkhand, Tamil Nadu and Karnataka to now regulating coal supplies to states where power generating companies have been delaying payments.

    2) Covid impact on government finances and ability to support discoms

    • Notwithstanding buoyant tax revenues this year, Covid has wreaked havoc on government finances.
    • The general government debt stands at 90 per cent of GDP.
    • Add to this demands for greater welfare spending, uncertainty over state government finances once the five year GST compensation period ends next year, and the limits to which states can continue to support discoms will increasingly be tested.
    • To what extent accounting jugglery can be used once again to clean up discom debt is debatable.
    • After all, even the liquidity facility arranged by the Centre to help discoms pay off their obligations will have to be paid back.

    3) Loss of monopoly and shift towards renwable

    • Until now, consumers had little recourse to alternate sources of supply.
    • Consequently, discoms, which are essentially geographical monopolies, were able to charge higher tariffs from commercial and industrial consumers to cross-subsidise agricultural and low-income households.
    • But the situation appears to be changing.
    • Migration of high tariff paying consumers through open access and investments in captive power plants is gaining traction, driven in large part by the emergence of solar as an alternative at seemingly competitive tariffs.
    • This reduced reliance of high tariff paying consumers on discoms will only exacerbate their already precarious financial position.
    • The pace at which this transition is occurring will only accelerate in the coming years.
    • On the supply side, at the global and the national level, there is a push towards cleaner fuel, solar in particular.
    • Flowing from this — though with debatable relevance given the current levels of per capita emissions — is the domestic policy thrust towards renewables.
    • Solar, in particular, benefits from both explicit and implicit subsidies — land at concessional rate, exemption from interstate transmission charges, discounted wheeling charges, cross-subsidies for open access, SECI taking on counterparty risk, and others.
    • It also enjoys “Must Run” status.
    • On the demand side, at current tariffs, solar is emerging as an attractive alternative for the high tariff paying commercial and industrial consumers.
    • On their part, discoms are trying to salvage a losing situation.
    • To stem the flow of high paying customers, some have begun levying an additional surcharge on whoever opts for open access to lower the cost differential.
    • Others are shifting from net metering to gross metering — essentially charging consumers higher tariffs — above particular consumption levels.

    Conclusion

    Continuously subsidising discoms for their AT&C losses (operational inefficiencies), and for not supplying power at commensurate tariffs to low-income households and agricultural customers (for political considerations) will become fiscally untenable.

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  • The right time for India to have its own climate law

    Context

    The United Nations Climate Change Conference (COP26, from October 31 to November 12, 2021), at Glasgow, Scotland is important as it will call for practical implementation of the 2015 Paris Accord, setting the rules for the Accord.

    Indian proposals

    • Prime Minister Narendra Modi announced, on November 1 at Glasgow, a ‘Panchamrit solution’ which aims at reducing fossil fuel dependence and carbon intensity.
    • This also includes ramping up India’s renewable energy share to 50% by 2030.
    • Union Minister of Environment, Forest and Climate Change Bhupender Yadav has reasserted the call for the promised $100 billion a year as support (from the developed world to the developing world).
    • But as we consider new energy pathways, we must also consider the question of climate hazard, nature-based solutions and national accountability.
    • This is the right time for India to mull setting up a climate law while staying true to its goals of climate justice, carbon space and environmental protection.

    Why India needs climate law

    • There are a few reasons for this.
    • Existing laws not adequate: Our existing laws are not adequate to deal with climate change.
    • We have for example the Environment (Protection) Act (EPA), 1986, the Air (Prevention and Control of Pollution) Act, 1981 and Water (Prevention and Control of Pollution) Act, 1974.
    • Yet, climate is not exactly water or air.
    • The Environment (Protection) Act is grossly inadequate to deal with violations on climate. Clause 24 of the Act, “Effect of Other Laws”, states that if an offence is committed under the EPA or any other law, the person will be punished under the other law (for example, Code of Criminal Procedure).
    • This makes the EPA subordinate to every other law. 
    • There is a need to integrate climate action: Integration includes adaptation and mitigation — and monitoring progress.
    • Comprehensive climate action is not just technological such as changing energy sources or carbon intensity, but also nature-based such as emphasising restoration of ecosystems.
    • India’s situation is unique: Climate action cannot come by furthering sharpening divides or exacerbating poverty, and this includes our stated renewable energy goals.
    • The 500 Gigawatt by 2030 goal for renewable can put critically endangered grassland and desert birds such as the Great Indian Bustard at risk, as they die on collision with wires in the desert.

    Suggestions on climate law

    • A climate law could consider two aspects.
    • Commission on climate change: Creating an institution that monitors action plans for climate change.
    • A ‘Commission on Climate Change’ could be set up, with the power and the authority to issue directions, and oversee implementation of plans and programmes on climate.
    • The Commission could have quasi-judicial powers with powers of a civil court to ensure that its directions are followed in letter and spirit.
    • System of liability and accountability: We need a system of liability and accountability at short-, medium- and long-term levels as we face hazards.
    • This also means having a legally enforceable National Climate Change Plan that goes beyond just policy guidelines.
    • A Climate Commission could ideally prevent gross negligence in fragile areas and fix accountability if it arises.

    Conclusion

    We have an urgent moral imperative to tackle climate change and reduce its worst impacts. But we also should Indianise the process by bringing in a just and effective law — with guts, a spine, a heart, and, most importantly, teeth.

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  • Charting a trade route after the MC12

    Context

    The World Trade Organization (WTO)’s 12th Ministerial Conference (MC12) is being convened in Geneva, Switzerland at the end of this month.

    Ministerial Conferences

    • The topmost decision-making body of the WTO is the Ministerial Conference, which usually meets every two years. It brings together all members of the WTO, all of which are countries or customs unions.
    • The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements

    The task ahead for MC12

    • Recent WTO estimates show that global trade volumes could expand by almost 11% in 2021, and by nearly 5% in 2022, and could stabilise at a level higher than the pre-COVID-19 trend.
    • The MC12 needs to consider how in these good times for trade, the economically weaker countries “can secure a share in the growth in international trade commensurate with the needs of their economic development’, an objective that is mandated by the Marrakesh Agreement Establishing the World Trade Organization.
    • Some of the areas are currently witnessing intense negotiations, these include adoption of WTO rules on electronic commerce, investment facilitation, and fisheries subsidies.

    Following issues will form the basis of MC12 discussions

    1) IPR waiver for Covid-19 related technologies

    • Pharmaceutical companies have used monopoly rights granted by their IPRs to deny developing countries access to technologies and know-how, thus undermining the possibility of production of vaccines in these countries.
    • To remedy this situation, India and South Africa had tabled a proposal in the WTO in October 2020, for waiving enforcement of several forms of IPRs on “health products and technologies including diagnostics, therapeutics, vaccines, medical devices.
    •  This proposal, supported by nearly two-thirds of the organisation’s membership, was opposed by the developed countries batting for their corporates.
    • The unfortunate reality of the current discussions is that an outcome supporting affordable access to COVID-19 vaccines and medicines looks distant.

    2) Fisheries subsidies

    • Discussions on fisheries subsidies have been hanging fire for a long time, there is considerable push for an early conclusion of an agreement to rein in these subsidies.
    • The current drafts on this issue do not provide the wherewithal to rein in large-scale commercial fishing.
    • Large scale commercial fishing is depleting fish stocks the world over, and at the same time, are threatening the livelihoods of small fishermen in countries such as India.

    3) E-commerce

    • Discussions on e-commerce are being held in the WTO since 1998, wherein WTO members agreed to “continue their practice of not imposing customs duties on electronic transmissions”.
    • The more substantive outcome was the decision to “establish a comprehensive work programme” taking into “account the economic, financial, and development needs of developing countries”.
    • However, in 2021, a key focus of the 1998 e-commerce work programme, namely “development needs of developing countries”, is entirely missing from the text document that is the basis for the current negotiations.
    • On the negotiating table are issues relating to the liberalisation of the goods and services trade, and of course guarantee for free flow of data across international boundaries, all aimed at facilitating expansion of businesses of e-commerce firms.
    • In fact, the decision on a moratorium on the imposition of import duties agreed to in 1998 has become the basis for a push towards comprehensive trade liberalisation — a perfectly logical way forward, given that the sole objective of the negotiations on e-commerce is to facilitate expansion of e-commerce firms.

    4) Investment facilitation

    • Inclusion of substantive provisions on investment in the WTO has been one of the more divisive issues.
    • In 2001, the Doha Ministerial Declaration had included a work programme on investment, but developing countries were opposed to its continuation because the discussions were geared to expanding the rights of foreign investors through a multilateral agreement on investment.
    • An investment facilitation has reintroduced the old agenda of concluding such an investment agreement.

    Issues with the negotiations

    • The negotiations on e-commerce and investment facilitation are being conducted not by a mandate given by the entire membership of the WTO in a transparent manner.
    • Instead, these negotiations owe their origins to the so-called “Joint Statement Initiatives” (JSI) in which a section of the membership has developed the agenda with a view to producing agreements in the WTO.
    •  This entire process is “detrimental to the very existence of a rule-based multilateral trading system under the WTO”, as India and South Africa have forcefully argued in a submission against the JSIs early this year.

    Conclusion

    Current favourable tidings provide an ideal setting for the Trade Ministers from the WTO member-states to revisit trade rules and to agree on a work programme for the organisation, which can help maintain the momentum in trade growth.

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