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GS Paper: GS3

  • The three acts of entrepreneurship that accelerated India’s start-up ecosystem

    Context

    Three acts of entrepreneurship from five years ago — Jio, UPI, and GST — have converged to accelerate our startup ecosystem.

    Let’s look at each in more detail

    • Impact of JIO: India’s per GB internet data costs are just 3 per cent of those in the US.
    • A bold and risky $35 billion bet made by a private company transformed Indians from being data deprived to data-rich; consumption has jumped 15 times because costs fell by over 90 per cent.
    • The addition of millions of consumers and smartphones since Jio’s delightful five-year disruption of the market has exploded the most important universal metric in startup valuation — addressable market.
    • Affordable digital connectivity is transforming 75 crore of them into consumers, entrepreneurs, employees, and suppliers.
    • Role of UPI: Google’s letter to the US Federal Reserve suggesting America learn from India’s Universal Payments Interface (UPI) acknowledged that our real-time, low-cost, open-architecture payment plumbing is a public good.
    • UPI’s mobile-first architecture is a key pillar of the paperless, presenceless, and cashless framework of the Aadhaar-seeded India Stack.
    •  Impact of GST: GST attacked complexity and incentivised law-abiding supply and distribution chains.
    • It was long in the making but going live needed the risk-taking of starting with a second-best architecture, accepting some unjustifiable rates, and state revenue guarantees.
    • The doubling of indirect tax registered enterprises since GST creates a virtuous economic cycle of higher total factor productivity for enterprises and employees.

    Flourishing startup ecosystem

    • India now has the highest ratio of unlisted to listed companies with a $1 billion valuation.
    • Initial public offering documents filed by early startups like Nykaa, Paytm, Zomato and PolicyBazaar roughly average a 10x valuation rise since the triad did IPO.
    • Estimates suggest India’s startup ecosystem valuation will explode from $315 billion today to $1 trillion by 2025.

    Conclusion

    Gandhiji’s notion of democracy — where the weakest have the same opportunity as the strongest — needs an economic meritocracy only possible when entrepreneurs have all the ingredients in the right proportions.

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  • Agni V vs China’s Hypersonic Missile

    Though inducted over three years ago, India’s foremost Agni 5 ballistic missile was tested for the first time after reports that China had tested a new hypersonic missile.

    What is the Agni 5 missile?

    • Agni 5 is India’s long-range surface-to-surface ballistic missile, which can hit a target with a precision that is 5,000 km
    • The nuclear-capable missile is India’s contender for the Intercontinental Ballistic Missile (ICBM).
    • Its range puts almost the entire China within the missile’s target range.
    • Though the government has claimed that it has a maximum range of around 5,000 km, several reports suggest that it can hit targets as distant as 8,000 km.
    • The nuclear capable missile can carry a warhead of around 1,500 kg and has a launch weight of 50,000 kg, making it one of the most potent missiles in the country.

    Note: Officially an ICBM needs a missile to have a range of at least 5,500 km.

    History of Agni Missiles

    • India began testing the Agni series of missiles in 1989 with the first test for Agni 1, an Intermediate-Range Ballistic Missile, with a range of around 1,000 km.
    • At that time only the US, the erstwhile Soviet Union, China, France and Israel, had IRBM technology.
    • Since then, DRDO labs have continued to work on it, bringing the latest available Agni 5 to its present capability.
    • In addition to the IRBM-capable nations, only North Korea and the UK have ICBM technology at the moment.

    Why is it important for India?

    • The success of AGNI missiles is in line with India’s stated policy to have ‘credible minimum deterrence’ that underpins the commitment to ‘No First Use’.
    • What makes Agni 5 agile is that it is a “canisterised” missile. It means that the missile can be launched from road and rail platforms, making it easier for it to be deployed and launched at a quicker pace.
    • The canisterisation also gives the missile a longer shelf life, protecting it from the harsher climatic conditions.
    • While India is among the handful of nations with ICBM capability.
    • The next generation of the missile, Agni VI, under development, is expected to have a range of around 8,000 km.

    What is a Hypersonic Glide Vehicle that China tested?

    • HGV is nuclear capable missile, which circled the earth before moving towards its target, missing it by two dozen miles.
    • It is launched by a rocket which moves in the Earth’s lower orbit, at more than five times to 25 times the speed of sound.
    • The vehicle is capable of carrying nuclear payloads, which gives the launching country the strategic capacity to attack almost any target across the world.

    How is HGV different from an ICBM?

    • A hypersonic glide vehicle orbits the earth at a lower height, and is manoeuvrable as compared to ICBM.
    • The ability to change track or target, mid-trajectory, along with the speed, makes them tougher to track and defend against.
    • The manoeuvrability provides them in-flight updates to attack a different target than originally planned.
    • They possess ability to fly at unpredictable trajectories, these missiles will hold extremely large areas at risk throughout much of their flights.

    Which countries have hypersonic technology?

    • Apart from China, the US and Russia are working on the technology.
    • France and India are working together for gaining the capability.

    Concerns about China developing such technology

    • China might have left the US behind in hypersonic capability.
    • It is being perceived as a Sputnik moment (first Russian space mission widely envied by the US).
    • A hypersonic attack could occur with very little warning time. The unpredictable trajectory would give them an advantage.

    Another concern: Increasing Proliferation

    • Globally the main concern is that once the technology is successfully established by even one country, it would lead to a larger race for the capability and its eventual proliferation.
    • The more that hypersonic missiles proliferate into the hands of additional nations, the more paths develop for crises.

     

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  • APVAX Initiative

    The Government of India has applied for loans from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to procure as many as 667 million doses of COVID-19 vaccines under the APVAX initiative.

    Try this question from CSP 2019

    Q.With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements:

    1. AIIB has more than 80 member nations.
    2. India is the largest shareholder in AIIB.
    3. AIIB does not have any members from outside Asia.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

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    APVAX Initiative

    • The ADB is expected to lend $1.5 billion and the AIIB around $500 million for the vaccine purchase by India.
    • It which has been made under the ADB’s Asia Pacific Vaccine Access Facility (APVAX) initiative.
    • Launched in December 2020, APVAX offers “rapid and equitable support to its developing member countries as they procure and deliver effective and safe COVID-19 vaccines”.
    • The Beijing-headquartered AIIB will co-finance the vaccine procurement.

    About Asian Development Bank (ADB)

    • The ADB is a regional development bank established on 19 December 1966.
    • It is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines.
    • From 31 members at its establishment, ADB now has 68 members.
    • The ADB was modelled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions.
    • ADB is an official United Nations Observer.
    • As of 31 December 2020, Japan and the UN each holds the largest proportion of shares at 15.571%.
    • China holds 6.429%, India holds 6.317%, and Australia holds 5.773%.

    Asian Infrastructure Investment Bank (AIIB)

    • The AIIB is a multilateral development bank that aims to improve economic and social outcomes in Asia.
    • The bank was proposed by China in 2013 and the initiative was launched at a ceremony in Beijing in October 2014.
    • The bank currently has 103 members, including 16 prospective members from around the world.
    • The starting capital of the bank was US$100 billion, equivalent to 2⁄3 of the capital of the Asian Development Bank and about half that of the World Bank.
    • It received the highest credit ratings from the three biggest rating agencies in the world, and is seen as a potential rival to the World Bank and IMF.

    AIIB and India

    • So far, the AIIB has approved loans for 28 projects in India amounting to $6.7 billion, more than for any other member of the multilateral bank.
    • India is the second-largest shareholder after China in the bank, which does not count the U.S. and Japan among its members.

     

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  • Krishi UDAN 2.0 Scheme

    The Union Minister of Civil Aviation has launched Krishi UDAN 2.0.

    Krishi UDAN 2.0

    • The scheme proposes to facilitating and incentivizing movement of Agri-produce by air transportation.
    • It lays out the vision of improving value realization through better integration and optimization of Agri-harvesting and air transportation.
    • It works by contributing to Agri-value chain sustainability and resilience under different and dynamic conditions.
    • It will be implemented at 53 airports across the country mainly focusing on Northeast and tribal regions and is likely to benefit farmer, freight forwarders and Airlines.

    Key highlights of the scheme

    • Facilitating and incentivizing movement of Agri-produce by air transportation: Full waiver of Landing, Parking, TNLC and RNFC charges for Indian freighters and P2C at selected Airports. Primarily, focusing on NER, Hilly, and tribal regions.
    • Strengthening cargo-related infrastructure at airports and off airports: Facilitating the development of a hub and spoke model and a freight grid.
    • Concessions sought from other bodies: Seek support and encourage States to reduce Sales Tax to 1% on aviation fuels for freighters / P2C aircraft as extended in UDAN flights.
    • Resources-Pooling through establishing Convergence mechanism: Collaboration with other government departments and regulatory bodies.
    • Technological convergence: Development of E-KUSHAL (Krishi UDAN for Sustainable Holistic Agri-Logistics).

    What is E-KAUSHAL?

    • It is a platform to be developed to facilitate information dissemination to all the stakeholders.
    • This will be a single platform that will provide relevant information at the same time will also assist in coordination, monitoring and evaluation of the scheme.
    • Furthermore, integration of E-KUSHAL with the National Agriculture Market (e-NAM) is proposed.

    Airports under the scheme

    Proposed timeline Locations
    2021 – 2022 Agartala, Srinagar, Dibrugarh, Dimapur, Hubballi, Imphal, Jorhat, Lilabari, Lucknow, Silchar, Tezpur, Tirupati, Tuticorin
    2022 – 2023 Ahmedabad, Bhavnagar, Jharsuguda, Kozhikode, Mysuru, Puducherry, Rajkot, Vijayawada
    2023 – 2024 Agra, Darbhanga, Gaya, Gwalior, Pakyong, Pantnagar, Shillong, Shimla, Udaipur, Vadodara
    2024 – 2025 Holangi, Salem

    7 focus routes & products

    Routes Products
    Amritsar – Dubai Babycorn
    Darbhanga – Rest of India Lichis
    Sikkim – Rest of India Organic produce
    Chennai, Vizag, Kolkata – Far East Seafood
    Agartala – Delhi & Dubai Pineapple
    Dibrugarh – Delhi & Dubai Mandarin & Oranges
    Guwahati  – Hong Kong Pulses, fruits & vegetables

     

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  • [pib] CERT-In authorized as CVE Numbering Authority (CNA)

    CERT-In has partnered with the Common Vulnerabilities and Exposures (CVE) Program and has been authorized as a CVE Numbering Authority (CNA) for vulnerabilities impacting all products designed, developed and manufactured in India.

    What is CVE Program?

    • CVE is an international, community-based effort and relies on the community to discover vulnerabilities.
    • The vulnerabilities are discovered then assigned and published to the CVE List.
    • Information technology and cybersecurity professionals use CVE Records to ensure they are discussing the same issue, and to coordinate their efforts to prioritize and address the vulnerabilities.
    • Partners publish CVE Records to communicate consistent descriptions of vulnerabilities.

    Mission of the Program

    • The mission of the CVE Program is to identify, define, and catalog publicly disclosed cybersecurity vulnerabilities.
    • The vulnerabilities are discovered then assigned and published by organizations from around the world that have partnered with the CVE Program.

    Who are the CNAs?

    • CNAs are organizations responsible for the regular assignment of CVE IDs to vulnerabilities, and for creating and publishing information about the Vulnerability in the associated CVE Record.
    • The CVE List is built by CVE Numbering Authorities (CNAs).
    • Every CVE Record added to the list is assigned by a CNA.
    • The CVE Records published in the catalog enable program stakeholders to rapidly discover and correlate vulnerability information used to protect systems against attacks.
    • Each CNA has a specific Scope of responsibility for vulnerability identification and publishing.

    Back2Basics: Indian Computer Emergency Response Team (CERT-IN)

    • CERT-IN is an office within the Ministry of Electronics and Information Technology.
    • It is the nodal agency to deal with cyber security threats like hacking and phishing. It strengthens the security-related defense of the Indian Internet domain.
    • It was formed in 2004 by the Government of India under the Information Technology Act, 2000 Section (70B) under the Ministry of Communications and Information Technology.

     

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  • Why India shouldn’t sign on to net zero

    Context

    The recent report of the Intergovernmental Panel on Climate Change made it clear that limiting the increase in the world’s average temperature from pre-industrial levels to those agreed in the Paris Agreement requires global cumulative emissions of carbon dioxide to be capped at the global carbon budget.

    Understanding why reaching net zero by itself is irrelevant to forestalling dangerous warming

    • The promise of when you will turn off the tap does not guarantee that you will draw only a specified quantity of water.
    • The top three emitters of the world — China, the U.S. and the European Union — even after taking account of their net zero commitments and their enhanced emission reduction commitments for 2030, will emit more than 500 billion tonnes of carbon dioxide before net zero.
    • These three alone will exceed the limit of about 500 billion tonnes from 2020 onwards, for even odds of keeping global temperature increase below 1.5°C.

    Issues with ‘net zero’ target

    • Neither the Paris Agreement nor climate science requires that net zero be reached individually by countries by 2050, the former requiring only global achievement of this goal “in the second half of the century”.
    • Claims that the world “must” reach specific goals by 2030 or 2050 are the product of specific economic models for climate action.
    • They front-load emission reduction requirements on developing countries, despite their already low emissions, to allow the developed world to backload its own, buying time for its own transition.
    • These stringent limits on future cumulative emissions post 2020, amounting to less than a fifth of the total global carbon budget, is the result of its considerable over-appropriation in the past by the global North.
    • Promises of net zero in their current form perpetuate this hugely disproportionate appropriation of a global commons, while continuing to place humanity in harm’s way.

    Suggestions for India

    • India is responsible for no more than 4.37% cumulative emissions of carbon dioxide since the pre-industrial era, even though it is home to more than a sixth of humanity.
    • India’s per capita emissions are less than half the world average, less than one-eighth of the U.S.’s.
    • For India to declare net zero now is to accede to the further over-appropriation of the global carbon budget by a few.
    • India’s contribution to global emissions, in both stock and flow, is so disproportionately low that any sacrifice on its part can do nothing to save the world.
    • India, in enlightened self-interest, must now stake its claim to a fair share of the global carbon budget.
    • Technology transfer and financial support, together with “negative emissions”, if the latter succeeds, can compensate for the loss of the past.
    • Such a claim by India provides it greater, and much-needed long-term options.
    • It enables the responsible use of coal, its major fossil fuel resource, and oil and gas, to bootstrap itself out of lower-middle-income economy status and eradicate poverty, hunger and malnutrition for good.
    • India’s resource-strapped small industries sector needs expansion and modernisation.
    • The agriculture sector, the second-largest source of greenhouse gas emissions for India after energy, needs to double its productivity and farmers’ incomes and build resilience.
    •  Infrastructure for climate resilience in general is critical to future adaptation to climate change.
    • All of these will require at least the limited fossil fuel resources made available through a fair share of the carbon budget.

    Conclusion

    Without restriction of their future cumulative emissions by the big emitters, to their fair share of the global carbon budget, and the corresponding temperature target that they correspond to made clear, India cannot sign on to net zero.

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  • What to do about the heavy cost of doing business in India

    Context

    The controversy over Ease of the Doing Business (EoDB) notwithstanding, India must now sharpen its focus on the Cost of Doing Business (CoDB).

    Cost of Doing Business in India

    • India has made considerable progress on EoDB rankings since 2016.
    • While the Centre’s focus on EoDB has been commendable, several state governments have also made efforts to improve business conditions.
    •  India must now sharpen its focus on the Cost of Doing Business (CoDB).
    • India lags behind other countries in terms of CoDB on several counts.

    Two key factors influencing CoDB — energy costs and regulatory overload

    • High fuel costs: Diesel prices in India are 20.8 per cent higher than those in China, 39.3 per cent higher than in the US, 72.5 per cent higher than Bangladesh and 67.8 per cent higher than in Vietnam.
    • This is largely because of heavy taxation — total taxes on diesel account for over 130 per cent of the base price in India.
    • High power costs: In the case of electricity, prices for businesses in India were higher by around 7-12 per cent vis-à-vis those in the US, Bangladesh or China and by as much as 35-50 per cent as compared to those in South Korea or Vietnam prior to the recent coal/energy crisis.
    • Coal, which accounts for more than 70 per cent of electricity generation in India, is also pricier vis-à-vis other countries leading to higher electricity prices.
    • Like in the case of the petroleum sector, government levies account for nearly half of the prices paid by coal consumers.
    • And coal producers cannot claim input tax credit because electricity is not under GST.
    • Further, coal freight costs are amongst the highest in the world as high freight rates are used to cross-subsidise passenger fares by the railways.
    • Regulatory overload: Outsized regulatory levels also pose a significant burden on businesses.
    • A Teamlease report highlights that a small manufacturing company with just one plant and up to 500 employees is regulated by more than 750 compliances, 60 Acts and 23 licences and regulations.
    • A mid-sized manufacturing company with six plants spread across different states is regulated by more than 5,500 compliances, 135 Acts and 98 licences and registrations.
    •  Keeping track of such a large number of regulations along with the changes thereof, imposes huge operational and financial costs on businesses, particularly the MSME segment.

    Way forward

    • Including fuels under GST would lower costs for businesses owing to input tax credit even if taxation levels continue to remain high.
    • Cleaning up the power distribution sector, which is largely state-controlled, could potentially lower electricity prices for businesses.
    • Fiscal incentives by the Centre: A majority of the compliances stem from the states and reducing this burden would require a significant push on states to act on this front.
    • The Centre could leverage the “carrot and stick” framework — using fiscal incentives to nudge the states to act and disincentivise them from maintaining the status quo.

    Consider the question “What are the factors affecting the cost of doing business in India? Suggest the measures to reduce it.”

    Conclusion

    The Government must prioritise reducing the cost of energy and compliances for businesses rather than focusing on de jure measures to boost ease of doing business. These will boost India’s manufacturing competitiveness significantly and further increase formalisation in the economy.

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  • Podu Land issue in Telangana

    The Telangana government has decided to move landless, non-tribal farmers engaged in Podu shifting cultivation inside forests to peripheral areas as it looks to combat deforestation.

    What is Shifting Cultivation?

    • Shifting cultivation is a form of agriculture or a cultivation system, in which, at any particular point in time, a minority of ‘fields’ are in cultivation and a majority are in various stages of natural re-growth.
    • Over time, fields are cultivated for a relatively short time, and allowed to recover, or are fallowed, for a relatively long time.
    • Eventually, a previously cultivated field will be cleared of the natural vegetation and planted in crops again.
    • Fields in established and stable shifting cultivation systems are cultivated and fallowed cyclically.
    • This type of farming is also called jhumming in India.

    What is 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.
    • The word comes from the Telugu language.
    • Podu is a form of shifting agriculture using slash-and-burn methods.

    Issue in Telangana

    • Shifting cultivation continues to be a predominant agricultural practice in many parts of India, despite state discouragement and multipronged efforts.
    • Telangana government has red-flagged encroachment of forests by non-tribals, who are indulging in the practice of shifting agriculture (podu).
    • Several political leaders have raised the issues of shifting agriculture and deforestation wherein encroachers clear a portion of land.
    • The government now wants to shift out all farmers from the forests to the periphery by allotting lands to them for cultivation.

    Impact of the move

    • Tribal farmers who have been traditionally cultivating for decades will not be affected by this drive against illegal encroachers.
    • The government has, in fact, given land ownership titles to tribals.
    • Other encroaching farmers will be shifted out.

    Back2Basics: Various shifting cultivation in India

    Type Place of practice
    Jhum North-eastern India
    Vevar and Dahiyaar Bundelkhand Region (Madhya Pradesh)
    Deepa Bastar District (Madhya Pradesh)
    Zara and Erka Southern States
    Batra South-eastern Rajasthan
    Podu Andhra Pradesh
    Kumari Hilly Region of the Western Ghats of Kerala
    Kaman, Vinga and Dhavi Odisha

     

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  • National Cyber Coordination Centre (NCSC)

    There are cybersecurity organisations in the country but no central body responsible for safety in the online space said the National Cyber Security Coordinator (NCSC).

    National Cyber Coordination Centre

    Headed by National Cyber Security Coordinator:  Lt. Gen. Rajesh Pant (Retd.)

    Objective: To help the country deal with malicious cyber-activities by acting as an Internet traffic monitoring entity that can fend off domestic or international attacks

    • The National Cyber Coordination Centre (NCCC) is an operational cybersecurity and e-surveillance agency in India.
    • It is jurisdictionally under the Ministry of Home Affairs.
    • It coordinates with multiple security and surveillance agencies as well as with CERT-In of the Ministry of Electronics and Information Technology.
    • Components of the NCCC include a cybercrime prevention strategy, cybercrime investigation training and review of outdated laws.

    Functions

    • It will be India’s first layer for cyber threat monitoring and all communication with government and private service providers would be through this body only.
    • The NCCC will be in virtual contact with the control room of all ISPs to scan traffic within the country, flowing at the point of entry and exit, including the international gateway.

    Cyber-security bottlenecks in India

    • India has no dedicated Cyber-security regulation and is also not well prepared to deal with cyberwarfare.
    • India has formulated the National Cyber Security Policy 2013 which is not yet implemented.
    • NCCC has been classified to be a project of the Indian government without a legal framework, which may be counterproductive as it may violate civil liberties and human rights.
    • Some have expressed concern that the NCCC could encroach on Indian citizens’ privacy and civil liberties, given the lack of explicit privacy laws in the country.

    Back2Basics: Indian Computer Emergency Response Team (CERT-IN)

    • CERT-IN is an office within the Ministry of Electronics and Information Technology.
    • It is the nodal agency to deal with cyber security threats like hacking and phishing. It strengthens the security-related defence of the Indian Internet domain.
    • It was formed in 2004 by the Government of India under the Information Technology Act, 2000 Section (70B) under the Ministry of Communications and Information Technology.

     

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  • What is White Dwarf?

    Using the Hubble Space telescope and Transiting Exoplanet Survey Satellite (TESS), astronomers have identified several white dwarfs over the years.

    Where is this white dwarf?

    • A white dwarf is what stars like the Sun become after they have exhausted their nuclear fuel.
    • Near the end of its nuclear burning stage, this type of star expels most of its outer material, creating a planetary nebula.
    • Only the hot core of the star remains. This core becomes a very hot white dwarf, with a temperature exceeding 100,000 Kelvin.
    • Unless it is accreting matter from a nearby star, the white dwarf cools down over the next billion years or so.

    Limits for white dwarf

    • White Dwarf is half the size of our Sun and has a surface gravity 100,000 times that of Earth.
    • There is a limit on the amount of mass a white dwarf can have.
    • Subrahmanyan Chandrasekhar discovered this limit to be 4 times the mass of the Sun. This is appropriately known as the “Chandrasekhar Limit.”

    Observing white dwarf

    • Many nearby, young white dwarfs have been detected as sources of soft, or lower-energy, X-rays.
    • Recently, soft X-ray and extreme ultraviolet observations have become a powerful tool in the study the composition and structure of the thin atmosphere of these stars.

    What is TESS?

    • The researchers observed this phenomenon using Transiting Exoplanet Survey Satellite (TESS).
    • TESS is a space telescope in NASA’s Explorer program, designed to search for extrasolar planets using the transit method.
    • The primary mission objective for TESS is to survey the brightest stars near the Earth for transiting exoplanets over a two-year period.
    • The TESS project will use an array of wide-field cameras to perform an all-sky survey. It will scan nearby stars for exoplanets.

    How does white dwarf ‘switch on and off’?

    • In these types of systems, the donor star orbit around the white dwarf keeps feeding the accretion disk.
    • As the accretion disk material slowly sinks closer towards the white dwarf it generally becomes brighter.
    • It is known that in some systems the donor stars stop feeding the disk.

     

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