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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

China’s Deflation: A cause for concern?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Deflation

Mains level: Read the attached story

deflation

Central Idea

  • China’s recent bout of deflation, marked by a decline in consumer prices for the first time in over two years, has sparked debates about its implications and causes.
  • This article delves into the intricacies of deflation, its potential impact on economic growth, and the unique circumstances driving deflation in China.

Understanding Deflation

  • Deflation Defined: Deflation refers to a sustained decrease in the general price level of goods and services within an economy.
  • Historical Context: Historically, the terms “inflation” and “deflation” were linked to changes in the money supply, with “inflation” representing a rise and “deflation” a fall in money supply.

Concerns Associated with Deflation

  • Economic Slowdown: Many economists view deflation as an indicator of dwindling demand for goods and services, potentially leading to an economic slowdown.
  • Demand-Supply Dynamics: Falling prices may prompt consumers to delay purchases, hampering demand and triggering a ripple effect throughout the economy.
  • Resource Utilization: A certain level of inflation is deemed necessary for optimal resource utilization, ensuring full economic potential is realized.

Varied Perspectives on Deflation

  • Positive Instances: Some economies have experienced deflation during periods of robust growth. Japan witnessed increased real income levels despite persistent deflation.
  • Economic Crises: Deflation can arise during economic crises when cautious spending and resource reallocation occur.
  • Consumer Demand and Prices: Some economists argue that consumer demand dictates prices, rather than the other way around.

China’s Deflation Scenario

  • Policy Measures: China’s central bank maintained low interest rates to stimulate demand amid the post-pandemic recovery.
  • Property Sector Turmoil: China’s pre-pandemic property sector challenges, affecting GDP contribution, may be a root cause of the current deflationary trend.
  • Complex Factors: While liquidity may not be the core issue, comprehensive analysis of money supply and monetary transmission is necessary to determine the underlying cause.

Deflation and India

Period Causes Impact on India
Great Depression (1930s) Global economic downturn, reduced demand Agricultural and industrial contraction, falling prices
Post-Independence (1950s-1960s) Supply-side constraints, monetary policy Agricultural fluctuations, efforts to control inflation
Global Oil Crisis (1970s) Surge in oil prices, cost-push inflation Economic slowdown, increased costs, reduced demand
Economic Reforms Era (1990s) Transition to market-oriented economy, policy measures Sectoral slowdown, reduced demand, short-term deflation
Global Financial Crisis (2008-2009) Global financial crisis, economic slowdown Reduced consumer spending, limited deflationary impact

 

Repercussions of Chinese Deflation

[A] Positive Impacts:

  • Cheaper Imports: If Chinese goods become cheaper due to deflation, it could lead to lower import costs for India, benefiting consumers and businesses that rely on Chinese imports.
  • Lower Input Costs: Reduced prices for raw materials and intermediate goods from China could lower production costs for Indian industries that depend on these inputs.
  • Global Supply Chains: If Chinese deflation reduces the cost of production within global supply chains, Indian businesses integrated into these chains might experience cost savings.
  • Improved Trade Balance: Cheaper Chinese imports can contribute to a more favorable trade balance for India, especially if it leads to reduced import bills.

[B] Negative Impacts:

  • Export Competition: Cheaper Chinese exports due to deflation could increase competition for Indian exports in international markets, potentially affecting certain Indian industries.
  • Import Dumping: A flood of cheap Chinese goods into the Indian market could harm domestic producers, leading to job losses and economic strain.
  • Investment Flows: A slowdown in China’s economy caused by deflation might lead to reduced investor confidence and affect foreign direct investment (FDI) flows to India.
  • Currency Effects: If China’s central bank devalues its currency to boost exports in response to deflation, it could lead to a stronger Indian rupee, impacting India’s export competitiveness.
  • Commodity Prices: Reduced demand for commodities from China due to deflation could lead to lower global commodity prices, affecting Indian exporters of raw materials.

Conclusion

  • China’s encounter with deflation amidst efforts to boost demand and stabilize its economy presents a multi-faceted challenge.
  • Understanding the nuances of deflation, its interaction with demand dynamics, and China’s unique economic landscape are vital.
  • As China navigates its path forward, policymakers must consider the interplay of factors, including the property sector’s impact and broader economic goals.

Back2Basics:

Terminologies related to PRICE RISE

Inflation Sustained increase in the general price level of goods and services in an economy over time, leading to reduced purchasing power of money.
Deflation Sustained decrease in the general price level of goods and services, often resulting in reduced consumer spending and economic stagnation.
Hyperinflation Extremely rapid and uncontrollable increase in prices, eroding the value of money and disrupting economic stability.
Stagflation Simultaneous occurrence of stagnant economic growth, high unemployment, and high inflation, contrary to traditional economic theories.
Creeping Inflation Gradual increase in the general price level at a rate of 1-3% annually, considered normal and manageable.
Galloping Inflation High inflation ranging from 10% to several hundred percent per year, eroding savings and economic planning.
Demand-Pull Inflation Rise in prices due to demand exceeding supply, often occurring during periods of strong economic growth.
Cost-Push Inflation Increase in prices caused by higher production costs, such as rising wages or raw material expenses.
Built-In Inflation Cycle of rising prices and wages as workers demand higher wages to match inflation, contributing to a continuous cycle.
Structural Inflation Inflation resulting from supply and demand imbalances due to structural factors like technology changes or market conditions.
Open Inflation When rising prices are publicly acknowledged and factored into economic decisions, including wage negotiations.
Suppressed Inflation Prices rise but are officially reported at a lower rate due to government intervention, subsidies, or price controls.
Repressed Inflation Artificially keeping prices low through government controls despite demand exceeding supply, leading to potential future price spikes.
Disinflation Decrease in the rate of inflation, indicating the general price level is still rising but at a slower rate, often a transition to more stable inflation levels.

 

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Higher Education – RUSA, NIRF, HEFA, etc.

Should there be a blanket ban on smartphones in schools?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: India's digital transformation, schemes and policies

Mains level: India's digital transformation, ban on smartphones in Indian schools analysis

What’s the news?

  • UNESCO’s call for a ban on smartphones in Indian schools sparks nationwide debate on their impact, with educators and experts divided over whether to implement a blanket ban or nuanced regulations.

Central idea

  • With 1.2 billion mobile and 600 million smartphone users, India’s digital transformation is reshaping society. Predicted to reach over a billion by 2026, smartphone use in education is being debated after UNESCO’s call for a school ban, raising questions about classroom dynamics and student well-being.

UNESCO’s Stance on Smartphone Ban

  • With 1.2 billion mobile phone users and 600 million smartphone users in India, the country is experiencing a technology boom.
  • UNESCO recommends a global ban on smartphones in schools due to concerns about disruptions, cyberbullying, and compromised learning.
  • Research suggests that the mere presence of mobile devices can distract students and hinder their academic engagement.
  • The London School of Economics’ research highlights the positive impact of not allowing mobile phones in schools on academic performance.

Delhi’s Directorate of Education’s Approach

  • The Directorate of Education, Private School Branch, Government of the National Capital Territory of Delhi, issued an advisory on restricting mobile phone use in schools.
  • The advisory emphasizes the importance of reaching a consensus among stakeholders like students, parents, teachers, and school heads regarding mobile phone use in educational environments.
  • Delhi’s response demonstrates a proactive approach to maintaining a conducive learning atmosphere and prioritizing student well-being.
  • The Directorate’s concern centers around smartphone distractions such as notifications, games, and social media engagement during class hours.
  • The Delhi Government’s response showcases a commitment to addressing the potential negative impact of smartphone usage on education.

Impact of Mobile Phones on Students

  • Positive Impacts:
  • Access to Information: Smartphones offer students instant access to a vast pool of information and educational resources. Over 80% of students in developed countries use smartphones to access educational content.
  • Digital Literacy: Smartphone use fosters digital literacy, a crucial skill in today’s technology-driven world. The NEP (National Education Policy) in India emphasizes digital education and the use of technology.
  • Interactive Learning: Mobile apps and online platforms enhance interactive learning experiences. The use of QR codes in the state curriculum and additional resources showcases the integration of technology for learning.
  • Flexibility and Convenience: Smartphones enable learning beyond traditional classroom hours and locations. In countries like Finland, students are allowed to bring phones to class around age 12, promoting flexible learning.
  • Educational Apps: Educational apps cater to diverse learning styles and subjects. Language learning apps, mathematics tutorials, and science simulations provide engaging learning opportunities.
  • Negative Impacts:
  • Distractions and Reduced Focus: Mere proximity to smartphones can lead to distraction and reduced focus during classes. Research by the London School of Economics suggests that mobile phones can deter academic performance.
  • Addiction and Sleep Deprivation: Excessive smartphone usage contributes to addiction and sleep deprivation among students. Teenagers’ addiction to smartphones has been linked to increased anxiety and behavioral problems.
  • Cyberbullying and Mental Health: Smartphone-enabled access to social media platforms exposes students to cyberbullying and mental health issues. Students’ exposure to unrealistic standards on social media can lead to feelings of inadequacy and depression.
  • Decline in Face-to-Face Interaction: Increased smartphone use can lead to reduced face-to-face interactions among students. UNESCO’s recommendation to ban smartphones in schools aims to promote more meaningful face-to-face interactions.
  • Academic Decline due to Distracted Learning: Checking notifications, playing games, and engaging in social media during class hours negatively impact academic performance. Studies show a correlation between excessive smartphone use and lower grades.

Perspectives in Favor of a Smartphone Ban in Schools

  • Enhanced Academic Focus: Banning smartphones can lead to improved academic focus among students. Research indicates that the presence of mobile devices distracts students and hampers their learning engagement.
  • Mitigation of Cyberbullying and Mental Health Concerns: A smartphone ban would protect students from cyberbullying and associated mental health issues. Students exposed to social media platforms can experience emotional distress due to online interactions.
  • Encouragement of Face-to-Face Interaction: Banning smartphones would encourage more meaningful face-to-face interactions, fostering interpersonal skills. UNESCO’s recommendation emphasizes maintaining academic integrity through human interactions.
  • Positive Impact on Academic Performance: Limiting smartphone use during school hours can lead to improved academic performance. Research from the London School of Economics suggests that mobile phone restrictions can positively influence student achievement.
  • Development of Healthy Learning Habits: Implementing a smartphone ban promotes healthy learning habits by reducing distractions. Excessive smartphone use has been linked to addiction and sleep deprivation, which hinder effective learning.

Perspectives Against a Smartphone Ban in Schools

  • Access to Information and Resources: Smartphones provide quick access to a wealth of educational information and resources. Educational apps and online resources cater to diverse learning styles and offer supplementary materials.
  • Preparation for Real-World Technology Use: Allowing controlled smartphone use prepares students for a technology-driven future. National Education Policies and state curricula emphasize the importance of digital literacy and technology integration.
  • Customized Learning and Engagement: Smartphone apps and interactive platforms offer personalized and engaging learning experiences. Many students in developed countries use smartphones to access tailored educational content.
  • Parental Responsibility and Education: Educating students about responsible smartphone use is the responsibility of parents. Some developed countries allow controlled smartphone use, teaching students about balanced usage.
  • Bridge the Gap for Economically Disadvantaged Students: Smartphones bridge technology gaps for economically disadvantaged students, providing access to digital resources. An outright ban could worsen disparities among students based on their socioeconomic backgrounds.

Way Forward

  • Holistic Stakeholder Engagement: Engage all stakeholders, including students, parents, teachers, and school administrators, in open discussions and decision-making processes regarding smartphone usage in schools.
  • Incorporate Age-Based Guidelines: Develop age-specific guidelines for smartphone use in classrooms, taking into account developmental stages and potential distractions.
  • Digital Literacy Curriculum: Integrate digital literacy education within the curriculum to educate students about responsible smartphone usage, privacy, and online etiquette.
  • Educate Educators: Provide teachers with training on managing smartphone use effectively in classrooms and incorporating them as tools for learning.
  • Parental Awareness Campaigns: Launch campaigns to educate parents about the implications of excessive smartphone use, emphasizing responsible parenting in the digital age.
  • Digital Divide Solutions: Consider alternative solutions, like providing laptops, tablets, or internet facilities alongside smartphones, to bridge the digital divide effectively.
  • Research on New Learning Paradigms: Invest in research to explore innovative approaches that harness the benefits of smartphones while mitigating potential distractions and drawbacks.

Conclusion

  • As India strides toward an increasingly digital future, the education system faces the challenge of embracing innovation while mitigating distractions. Balancing student welfare, academic integrity, and equitable access will be vital in shaping policies that harness technology’s potential while preserving the sanctity of the classroom.

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Tuberculosis Elimination Strategy

Lancet TB study: Food for cure

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Tb eradication goal and initiatives

Mains level: India's TB burden, initiatives, challenges and way forward

What’s the news?

  • A recent study published in the medical journal Lancet reveals a significant link between nutrition and tuberculosis (TB) survival.

Central idea

  • Undernutrition has, for a long time, been recognized as the leading risk factor for tuberculosis. In India, modeling studies have suggested that addressing undernutrition could reduce cases by over 70 percent in vulnerable states. A study in the Lancet shows that a good diet not only reduces the incidence of the disease among vulnerable people living with infected people, but it also reduces mortality in TB patients.

A Jharkhand Case Study

  • A study observed a striking 60% reduction in mortality risk among TB patients who gained weight early in the disease.
  • Early weight gain is directly linked to improved survival rates.
  • The data underscores the immediate positive impact of proper nutrition on TB outcomes.
  • Early weight gain correlates with lower mortality rates, highlighting the significance of a well-balanced diet.
  • The study’s results carry crucial implications for policymakers and healthcare practitioners.
  • A study addresses a vital knowledge gap by emphasizing the direct influence of nutrition on TB patients.

Impact of TB on Nutrition

  • Diminished Appetite and Caloric Intake:
    • 75% of TB patients experience significant appetite reduction during treatment.
    • Reduced food intake leads to an inadequate caloric supply, worsening nutritional deficiencies for those already combating TB.
  • Fever-Driven Caloric Expenditure:
    • Fever amplifies caloric expenditure by 10–15% in TB patients.
    • Increased calorie loss due to fever exacerbates the nutritional imbalance in individuals with TB.
  • Wasting and Weight-for-Height Ratio:
    • Over 40% of severe TB cases result in wasting, causing low weight-for-height ratios.
    • Wasting intensifies nutritional strain, necessitating comprehensive strategies to address this challenge.
  • Nutritional Recovery and Relapse Risk:
    • Patients with poor diets during recovery face nearly 30% higher relapse rates.
    • Inadequate nutritional recovery raises the risk of TB relapse, highlighting the importance of post-TB dietary care.

Government Initiatives to Eliminate Tuberculosis

  • Nikshay Poshan Yojana: A government scheme providing financial aid to TB patients Aims to alleviate nutritional challenges during treatment and recovery.
  • Policy Guidelines on Nutrition: The National Tuberculosis Elimination Programme (NTEP) recommends a daily caloric intake of 2,800 calories for TB patients. It enhances patients’ nutritional status, which is vital for effective recovery.
  • Challenges in Implementation: The 2020 study highlights healthcare providers’ difficulties in executing nutritional support. It Sheds light on potential hindrances to ensuring effective aid distribution.
  • Nutritional Education Integration: The government introduces awareness campaigns on the importance of proper nutrition during and after TB treatment. Empowers patients to make informed dietary choices, aiding recovery and reducing relapse risks.
  • Path to Elimination: The government‘s aim is to eliminate TB by 2025. The government seeks to reduce the disease burden, including its nutritional implications for the affected population.

Challenges in Addressing TB’s Nutritional Impact

  • Awareness and Education Gap: Limited awareness among TB patients and healthcare providers regarding the importance of proper nutrition during treatment. This hinders the adoption of adequate dietary practices that can positively influence recovery.
  • Nutritional Support Integration: Difficulty in seamlessly integrating nutritional support within the broader TB treatment framework. Patients may not receive the required dietary assistance, potentially hampering their overall health outcomes.
  • Resource Constraints: Limited resources to provide consistent and effective nutritional aid to all TB patients Inadequate support might lead to unequal access to nutritional assistance, affecting recovery rates.
  • Complexity of Implementation: The implementation of nutritional programs, such as Nikshay Poshan Yojana, might be hampered by administrative complexities. Delays in aid distribution could compromise timely nutritional support for TB patients.
  • Socio-Economic Factors: Socio-economic disparities affect patients’ ability to access nutritious foods. Underprivileged individuals might face difficulties maintaining a balanced diet, negatively influencing their recovery.
  • Fragmented Approach: Lack of coordination among different government departments and stakeholders involved in TB care and nutritional support Fragmented efforts could lead to inefficiencies and gaps in providing holistic care to TB patients.
  • Cultural and Dietary Diversity: Designing nutritional interventions that accommodate the diverse dietary preferences and cultural practices of TB patients, One-size-fits-all approaches might not be effective across various cultural contexts.

Way forward

  • Enhanced Nutritional Counseling: Strengthen healthcare providers’ training to offer comprehensive nutritional counseling to TB patients. Empowered patients make informed dietary choices, aiding recovery and reducing relapse risks.
  • Holistic Nutritional Assessment: Integrate nutritional assessments as a standard procedure in TB patient care. Customized dietary plans can counteract malnutrition, promoting faster recovery.
  • Collaboration with NGOs: Partner with non-governmental organizations to extend nutritional aid and support. A wider reach ensures that nutritional assistance reaches vulnerable populations effectively.
  • Strengthening Nikshay Poshan Yojana: Evaluate and refine the scheme based on challenges highlighted in the 2020 study. An optimized scheme ensures the efficient distribution of financial support for nutritional needs.
  • Leveraging Digital Platforms: Utilize technology for nutritional awareness campaigns and real-time monitoring of patients’ dietary adherence. Technology enhances outreach and aids in tracking patients’ progress.

Conclusion

  • For India, a nation grappling with a high TB burden, the Lancet study emphasizes the urgency of integrating robust nutritional strategies into TB elimination programs. By addressing implementation challenges and promoting patient awareness, India can navigate closer to its ambitious TB eradication goal by 2025.

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Cyber Security – CERTs, Policy, etc

Maya OS: Everything you need to know

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Maya OS

Mains level: Secured cyber infrastructure

maya os

Central Idea

  • The Defence Ministry is taking a significant stride towards bolstering its cybersecurity by introducing an indigenous operating system named Maya OS.
  • This move aims to replace Microsoft’s Windows OS on all ministry computers, ensuring enhanced protection against cyberattacks.

Understanding Maya OS

  • Origin and Purpose: Maya OS is a homegrown operating system developed by the Union Ministry of Defence.
  • Name’s Significance: Maya OS draws its name from the ancient Indian concept of illusion, signifying the deceptive appearance of reality.
  • Open-Source Framework: Maya OS leverages the Ubuntu platform, embracing open-source principles by utilizing free and publicly available software. This approach enhances transparency, community collaboration, and customization possibilities.
  • Chakravyuh Feature: Maya OS introduces the Chakravyuh feature, an end-point anti-malware and antivirus software. It acts as a protective layer between users and the internet, thwarting unauthorized access attempts and safeguarding sensitive data.

User Interface and Features

  • Familiar Interface: Maya OS offers a user-friendly interface, mirroring the familiar look and feel of Windows, thereby ensuring a comfortable user experience.
  • Application Compatibility: The OS supports commonly used software like Microsoft Office, Adobe Photoshop, AutoCAD, and more, enabling a seamless transition for users.
  • Enhanced Security: Maya OS incorporates features such as cloud storage, encryption, digital signatures, and biometric authentication to fortify security measures.

Development Journey

  • Initiation in Response to Threats: The development of this OS commenced in 2021, prompted by the rise in cyberattacks targeting India’s critical infrastructure and defence systems.
  • Collaborative Efforts: A collaborative effort involving experts from various government agencies like DRDO, C-DAC, and NIC, along with Indian software companies and academic institutions, contributed to the development of Maya OS.
  • Swift Progress: The development of Maya OS was accomplished within 6 months, reflecting the dedication and expertise of the collaborative teams.

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Parliament – Sessions, Procedures, Motions, Committees etc

Renaming Kerala: From Kerala to Keralam

Note4Students

From UPSC perspective, the following things are important :

Prelims level: States renaming under Article 3

Mains level: Read the attached story

kerala

Central Idea

  • The Kerala Assembly’s recent unanimous resolution to rename the state as “Keralam” in the Constitution and official records has sparked discussions about the historical origins of the name and the process of renaming a state in India.

Renaming Kerala: Resolution and Historical Context

  • Unanimous Decision: The Kerala Assembly, led by CM, passed a resolution urging the Centre to rename the state as “Keralam” in both the Constitution and official records.
  • Language Basis: The resolution highlights that the Malayalam name of the state is “Keralam,” and states were formed based on language on November 1, 1956. The resolution seeks alignment between the Malayalam name and its representation in official documents.

Procedure for Renaming a State

State Government’s Proposal: The proposal to rename a state originates from the state government. The Union MHA reviews the proposal and seeks No Objection Certificates (NOCs) from various agencies.

Centre’s Approval: Unlike renaming cities, renaming a state requires approval from the Centre’s Ministry of Home Affairs (MHA). A Constitutional amendment is necessary for this change (under Article 3 and 4 of the Constitution).

Parliamentary Approval: If accepted, the proposal is introduced as a Bill in the Parliament. Upon becoming law, the state’s name is officially changed.

Origin of the ‘Kerala’ Name

  • ‘Kerala’ and Asoka’s Edict: The earliest recorded mention of ‘Kerala’ is in Emperor Asoka’s Rock Edict II of 257 BC, where the local ruler is referred to as “Keralaputra” (son of Kerala) and “son of Chera” from the Chera dynasty.
  • ‘Keralam’ from ‘Cheram’: Scholars speculate that ‘Keralam’ could have derived from ‘Cheram.’ Dr. Herman Gundert, a German scholar, proposed that ‘keram’ is the Canarese (Kannada) form of ‘cheram,’ suggesting that ‘Keralam’ could mean the region between Gokarnam and Kanyakumari, stemming from the root ‘cher’ meaning to join.

Demand for a Unified State

  • Aikya Kerala Movement: In the 1920s, the Aikya Kerala movement gained momentum, advocating for a unified state for Malayalam-speaking people. It aimed to integrate Malabar, Kochi, and Travancore into a single territory.
  • Cultural Unity: The movement was driven by the shared language, cultural traditions, history, and customs of the Malayalam-speaking population.

Formation of Modern Kerala

  • Travancore-Cochin State: In 1949, Travancore and Kochi merged, forming the Travancore-Cochin State.
  • State Reorganisation Commission: The State Reorganisation Commission recommended the creation of Kerala as a state for Malayalam-speaking people. The inclusion of Malabar and Kasargod and the exclusion of certain areas were proposed.
  • Birth of Kerala: On November 1, 1956, the state of Kerala was officially formed, referred to as “Keralam” in Malayalam and “Kerala” in English.

Conclusion

  • The resolution to rename Kerala as “Keralam” reflects the historical and cultural significance attached to the state’s name.
  • The process of renaming a state underscores the federal structure of India, where Centre-State collaboration is essential for such significant changes.

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North-East India – Security and Developmental Issues

Progress track: North East Venture Fund (NEVF)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: North East Venture Fund (NEVF)

Mains level: Not Much

Central Idea

  • The North East Venture Fund (NEVF) has emerged as a catalyst for startups in the region.
  • Since its inception, NEVF has invested in 37 startups, injecting a total of Rs 56.84 crores into the entrepreneurial ecosystem.

What is North East Venture Fund (NEVF)?

  • Establishment: The NEVF, launched by the government in 2017, has emerged as a catalyst for startups in the region.
  • SEBI Approval: NEVF is categorized as a Category I Venture Capital Fund under SEBI’s Alternative Investment Funds (AIF) Regulations, 2012.
  • Investment Committee: An independent Investment Committee, comprising experienced professionals from venture funding, private equity, and developmental banking, makes investment decisions.
  • Regulatory Reporting: Periodic reporting on operational and compliance aspects is presented to NEVF contributors and relevant bodies as mandated. This ensures transparency and adherence to regulations.
  • Regulatory Oversight: The fund’s operations are subject to monitoring by the Reserve Bank of India (RBI) and Comptroller and Auditor General of India (CAG) through regular audits.

NEVF’s Funding

  • Fund Corpus: NEVF was established as a closed-end fund with a target corpus of Rs. 100 crore.
  • Contributors: NEVF has achieved its target corpus through contributions: Rs. 30 crore from North Eastern Development Finance Corporation Ltd. (NEDFi), Rs. 25 crore from Small Industries Development Bank of India (SIDBI), and Rs. 45 crore from the Ministry of Development of North Eastern Region (MDoNER).
  • MDoNER Contribution: MDoNER’s contribution was provided as an interest-free loan to NEDFi, repayable in a lump sum after 15 years.

Successful Outreach

  • Geographical Distribution: The startups benefiting from NEVF are spread across various North Eastern states, with 24 in Assam, six in Manipur, three in Meghalaya, two in Arunachal Pradesh, and one each in Tripura and Sikkim.
  • Job Creation: The startups supported by NEVF have collectively generated 4,812 employment opportunities since FY18. Among these, 3,906 were male and 906 were female employees. Additionally, 4,076 employees were unskilled, while 736 were skilled workers.
  • Assam’s Dominance: The state of Assam witnessed the most significant job creation through NEVF-supported startups, contributing to over 4,000 job opportunities.
  • Focus Areas: The new guidelines prioritize projects that create common facilities for manufacturing, testing, packaging, research and development, and training related to natural resources found in the NER and Sikkim. This includes areas like agriculture, forestry, sericulture, and bamboo cultivation.

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Electric and Hybrid Cars – FAME, National Electric Mobility Mission, etc.

Exploring Distance Tax: Transition from Oil-Dependent Revenue

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Distance Tax

Mains level: NA

Central Idea

  • With the shift towards cleaner energy sources and the decline in oil consumption, governments are seeking alternative revenue sources to compensate for the loss of fuel tax income.
  • One such solution is the implementation of distance tax, a mileage-based user fee that can potentially mitigate revenue loss while encouraging sustainable transportation practices.

Understanding Distance Tax

  • Concept: Distance tax, also known as mileage-based user fees or road-user charges, is a taxation method based on motorists’ road usage and mileage. The tax is proportional to the distance driven, incentivizing responsible vehicle usage.
  • Variable Rates: Distance tax rates can be flat, calculated per kilometer, or variable based on factors such as location and time. It can also vary according to the vehicle type.
  • Technology Implementation: Distance tax can be tracked through various technologies like automatic number plate recognition, radio frequency identification, or GPS-based systems. The latter, especially using the GPS-based toll collection system, holds promise for implementation in India.

Advantages of Distance Tax

distance tax

  • Revenue Recovery: As fuel consumption decreases due to the adoption of cleaner energy sources, distance tax offers a fuel-neutral method to recover lost tax revenue.
  • Encouraging Efficient Behavior: Distance tax promotes efficient vehicle usage, rewarding those who drive less and opting for environmentally friendly vehicles.
  • Managing Congestion: The tax can help manage traffic congestion by encouraging the use of small vehicles with lower carbon footprints.

Comparing with Other Alternatives

  • Fuel Tax Increase: Raising fuel tax rates is an option, but it might not align with the transition to cleaner energy sources and could negatively impact consumers.
  • Annual Fees on EVs: Imposing annual fees on electric vehicles (EVs) could hinder the EV adoption rate.
  • GST and Toll Tax Increase: Hiking GST on EVs or increasing toll tax and electricity tax is politically challenging.

Impact on Government Revenue

  • Oil Tax Dependency: Governments heavily rely on fuel tax revenues. In India, petroleum contributed to over 17.5% of the Centre’s revenue in 2022–23, and VAT on petroleum products accounted for 15% of all states’ and UTs’ revenue.
  • EV Transition Effects: The transition to EVs is predicted to reduce government revenue by 10.2%, equivalent to ₹1,457 crore, for Delhi by 2030. The Centre is also projected to lose 10% of its fuel tax revenue in Delhi due to EV adoption.

Way Forward

  • Gamification and Rewards: Develop a smartphone app that tracks a user’s distance traveled and calculates their distance tax.
  • Dynamic Pricing Based on Emission Levels: Implement a tiered distance tax system that charges vehicles with higher emissions more than those with lower emissions.
  • Green Corridors and Bonus Miles: Designate certain routes as “green corridors” with reduced or waived distance tax rates and offer bonus miles or credits to users who choose these routes.
  • Voluntary Reduction Challenges: Launch voluntary challenges where users commit to reducing their mileage for a set period.
  • Carbon Offset Integration: Provide users with the option to use a portion of their distance tax payments to support carbon offset projects, such as reforestation or renewable energy initiatives.

Conclusion

  • Distance tax stands out as a viable solution to balance revenue streams while encouraging responsible driving behavior and greener vehicle choices.
  • It addresses the challenge of declining oil tax income while promoting a shift towards cleaner transportation methods.

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Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

Amazon Cooperation Treaty Organisation (ACTO)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ACTO, Amazon Basin

Mains level: Not Much

amazon acto

Central Idea

  • In a landmark move, 8 South American countries have joined forces to address the critical issue of deforestation in the Amazon rainforest at the Amazon Cooperation Treaty Organisation (ACTO) summit, hosted by Brazil.
  • It is intriguing to know that this summit is the first gathering of its kind in 14 years since the group was established.

What is ACTO?

  • Formation: ACTO is an international organization established to safeguard the Amazon basin and facilitate its sustainable development through international collaboration.
  • Founding Treaty: The Amazon Cooperation Treaty was crafted and signed on July 3, 1978, by Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname, and Venezuela.
  • Evolution into ACTO: In 1995, these countries formalized their commitment by founding ACTO to actively pursue the objectives set forth in the original treaty.
  • Multilingual Platform: ACTO operates in four official languages: Dutch, English, Portuguese, and Spanish.

Need for ACTO

  • Deforestation: Clearing of land for agriculture, logging, mining, and infrastructure development leads to extensive deforestation, reducing the forest’s size and disrupting ecosystems.
  • Climate Feedback Loop: Deforestation disrupted the Amazon’s role as a carbon sink, potentially turning it into a carbon source and exacerbating climate change.
  • Illegal Logging: Unregulated and unsustainable logging practices contribute to deforestation, habitat destruction, and loss of biodiversity.
  • Indigenous Land Encroachment: Encroachment on indigenous lands and territories disrupts traditional ways of life and cultural practices, impacting both communities and ecosystems.
  • Forest Fire: Uncontrolled fires, often intentionally set for land clearance, can spread rapidly, destroying vast areas of forest and releasing carbon dioxide into the atmosphere.

ACTO’s Conservation and Development Initiatives

  • Amazonian Management: The ACTO member nations recognize that effective management of the Amazon basin is pivotal for advancing the well-being of its inhabitants.
  • Programs and Agreements: Collaborative programs and agreements have been established to ensure biodiversity preservation, promote conservation efforts, and manage the region’s resources.
  • Project GEF Amazonas: Funded by the Global Environment Facility, this program aims to secure agreement on a renewable and integrated water supply for sustainable development.
  • ACTO Biodiversity Program: This program focuses on maintaining a harmonious biological equilibrium to prevent fragmentation of Amazonian ecosystems.

Key Milestone: The Manaus Declaration (2004)

  • Purpose: ACTO played a pivotal role in formulating the Manaus Declaration in 2004, which coordinated the development of the vast rainforest area covering approximately 2.9 million square miles.
  • Commitment Reiteration: The declaration reaffirmed member countries’ dedication to fostering social and economic development in the Amazon while preserving its unique cultures.

Back2Basics: Amazon Rainforest

  • The Amazon Rainforest is a tropical rainforest situated in South America, primarily covering the Amazon Basin.
  • It extends across nine countries: Brazil, Peru, Colombia, Venezuela, Ecuador, Bolivia, Guyana, Suriname, and French Guiana.
  • Renowned for its unparalleled biodiversity, the Amazon Rainforest harbors around 10% of Earth’s known species, making it one of the most diverse ecosystems on the planet.
  • Encompassing approximately 5.5 million square kilometers, the Amazon Rainforest constitutes over half of the world’s remaining tropical rainforests.
  • Often referred to as the “lungs of the Earth,” the Amazon Rainforest plays a crucial role in global climate regulation by absorbing carbon dioxide and releasing oxygen through photosynthesis.

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Modern Indian History-Events and Personalities

Quit India Movement Day on 9th August

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Quit India Movement

Mains level: Read the attached story

quit india

Central Idea

  • On August 9, 1942, India embarked on a historic journey towards independence by launching the Quit India Movement.

Genesis of Quit India Movement

  • Gandhi’s Ultimatum: On August 8, 1942, Mahatma Gandhi issued a powerful ultimatum to the British Raj, urging them to “Quit India.” With the entire Congress leadership imprisoned, the people were galvanized to take matters into their own hands.
  • People-Powered Movement: The Quit India Movement was an authentic display of people’s determination. The call for “Do or Die” echoed in the hearts of millions who rallied on the streets, marking a turning point in the struggle.
  • Massive Scope: The movement’s magnitude was unprecedented, surpassing previous uprisings. India’s masses united to demand complete freedom, showcasing their unwavering commitment to breaking free from colonial shackles.

Birth of the Slogan ‘Quit India’

  • Yusuf Meherally’s Contribution: The catchphrase “Quit India” was coined by Yusuf Meherally, a socialist leader and Mayor of Bombay. He had earlier coined the slogan “Simon Go Back” in 1928 during another anti-colonial agitation.

Precursors to the Movement

  • Failure of Cripps Mission: While factors leading to such a movement had been building up, matters came to a head with the failure of the Cripps Mission. With WW2 raging, the beleaguered British government needed the cooperation of its colonial subjects. With this in mind, in March 1942, a mission led by Sir Stafford Cripps arrived in India to meet leaders of the Congress and the Muslim League.
  • Betrayal on WW2 Promises: The idea was to secure India’s whole-hearted support in the war, and the return offer to Indians was the promise of self-governance. But things did not go that way.
  • No complete freedom: Despite the promise of “the earliest possible realisation of self-government in India”, Cripps only offered dominion status, not freedom.
  • Unviable partition plan: Also, there was a provision for the partition of India, which was not acceptable to the Congress.

Outcomes: Gandhi’s Strategic Shift

  • From Non-Violence to Action: The failure of the Cripps Mission compelled Gandhi to shift from non-violent means to active resistance. The Congress, though initially hesitant to disrupt wartime efforts, embraced mass civil disobedience as a means to achieve freedom.
  • The “Do or Die” Call: On August 8, 1942, Gandhi addressed a massive gathering in Bombay’s Gowalia Tank maidan. He proclaimed the potent mantra of “Do or Die,” pledging India’s resolve to secure freedom at any cost.

Course of Events and Popular Uprising

  • People’s Resilience: The arrest of Congress leaders failed to quell the movement. Ordinary Indians across cities and towns took charge, engaging in acts of civil disobedience, strikes, and protests.
  • Working-Class Participation: Railway tracks were blocked, students boycotted schools, and mill workers across cities joined the movement. Bridges were destroyed, and government symbols were targeted.
  • Violent Phase: The movement escalated to a violent phase, marked by the destruction of infrastructure and defiance of government authority. This time, Gandhi dint resist for violence.

Suppression and Unyielding Passion

  • Brutal Crackdown: The British responded with violence, inflicting casualties, imprisoning thousands, and imposing severe fines. Villages were burned, and repressive measures were enforced.
  • Transformative Impact: Despite being suppressed, the Quit India Movement transformed the freedom struggle’s character. The masses’ fiery passion and unprecedented intensity illuminated the path to India’s imminent independence.

Conclusion

  • The Quit India Movement remains etched in history as a symbol of India’s unyielding spirit and collective determination to overthrow colonial rule.
  • The movement’s legacy lives on, inspiring generations to uphold the ideals of freedom, justice, and national pride.

Try this PYQ:

Q. Quit India Movement was launched in response to:

(a) Cabinet Mission Plan

(b) Cripps Proposals

(c) Simon Commission Report

(d) Wavell Plan

 

Post your answers here.

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Indian Army Updates

Assam Rifles: Role, Controversies, and Historical Significance

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Assam Rifles

Mains level: Manipur Riots

Assam Rifle

Central Idea

  • Recent events in Manipur have brought the Assam Rifles (AR) into the spotlight, raising questions about their role, control, and functioning.
  • As India’s oldest paramilitary force with a rich history, the Assam Rifles’ unique structure and dual control have sparked debates over its jurisdiction and the ministries under which it operates.

About Assam Rifles: A Unique Role

  • Central Armed Police Force: AR is one of six central armed police forces (CAPFs) under the Ministry of Home Affairs (MHA). It safeguards Northeastern regions, the Indo-Myanmar border, and assists the Indian Army in maintaining law and order.
  • Operational Duality: Uniquely, AR operates under dual control: administrative control under MHA and operational control under the Indian Army. This sets it apart from other CAPFs.
  • Composition and Leadership: With over 63,000 personnel across 46 battalions, AR follows a regimented structure similar to the Indian Army. Its senior ranks are manned by Army officers, and the force is commanded by an Indian Army Lieutenant General.

Historical Significance and Contributions:

  • Ancient Roots: Established in 1835, AR is India’s oldest paramilitary force. It originated as Cachar Levy and evolved into Assam Rifles, earning accolades for its service.
  • World Wars and Beyond: AR participated in World Wars and the Sino-Indian war of 1962. Its efforts in both global conflicts and anti-insurgency campaigns underline its diverse roles.
  • Versatility and Valor: AR’s combat role in World War II, counter-Japanese operations, and contribution to India’s peacekeeping missions in Sri Lanka speak to its versatility and bravery.

Controversial Encounter in Manipur

  • Accusations and Escapes: Manipur Police filed an FIR against the AR, alleging hindrance in their duty. The AR is accused of allowing suspected Kuki militants to evade capture. A video showing the tense exchange highlights concerns of collusion.
  • Voices of Discontent: Demands to remove AR from Manipur have arisen, with the Meira Paibis demanding their exit and the state’s BJP writing to the Prime Minister, alleging bias. These events underscore the complexity of AR’s presence in the region.

Tensions and Accusations

  • Recent Incident: A clash occurred when Assam Rifles vehicles hindered state police personnel from Meitei-dominated Bishnupur district from entering a Kuki-Zomi territory. Allegations arose that the Assam Rifles’ actions enabled suspected Kuki militants, accused of killing three Meitei men, to escape.
  • Perceptions of Bias: Some members of the Meitei community perceive the Assam Rifles as favoring the Kuki-Zomi community. These perceptions, along with allegations of inaction during conflicts, have further strained relations.
  • Protests and Demands: Meira Paibis, women activists from the Meitei community, staged protests demanding the removal of Assam Rifles from Manipur. They claim that Indian security forces are being used against the Meiteis.
  • Suspicion over Collusion: Meitei activists question how suspected militants managed to cross the buffer zone and commit the killings. They criticize the perceived inaction of Assam Rifles personnel during attacks by the Kuki-Zomi.
  • Longstanding Grievances: Beyond the current conflict, Meiteis raise concerns about illegal immigration from Myanmar. They point to the Assam Rifles’ historical responsibility for the Indo-Myanmar border and alleged inaction.

Historical Strain with AFSPA

  • Historical Tensions: Assam Rifles has faced strained relations with Manipur’s residents, particularly during counter-insurgency operations under the Armed Forces Special Powers Act (AFSPA).
  • Symbolic Resistance: The 2004 incident where 12 Meitei women protested naked in front of the Assam Rifles Headquarters reflected the deep-rooted grievances and tensions present in the region.

Debate over Control

  • Tug of War: Both the MHA and Ministry of Defence (MoD) desire full control over AR. MHA argues for comprehensive border-guarding coordination, while the Army believes in maintaining the current system, which has worked well.
  • Past Proposals: In 2013 and 2019, discussions were held to merge AR with BSF and ITBP, respectively. The Army’s desire for control has led to ongoing deliberations.

Conclusion

  • The Assam Rifles embody a legacy of service, transcending decades and challenges.
  • As the debate over control continues, the AR’s role as protectors of borders and preservers of history remains unwavering, a testament to their resilience and valor.

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Nuclear Energy

Small Modular Reactors for India’s Clean Energy Transition

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Small Modular Reactors (SMRs)

Mains level: Assessment of SMRs sustainability and viability

small nuclear reactors

Central Idea

  • As the world strives to decarbonize and meet U.N. Sustainable Development Goal 7, India stands at a crossroads in its pursuit of affordable, reliable, and sustainable energy.
  • Fossil fuels still dominate 82% of the global energy supply, highlighting the pressing need for cleaner power sources.
  • While solar and wind energy have gained traction, they alone might not guarantee grid stability and energy security.

What is the news?

  • Small modular reactors (SMRs), a type of nuclear reactor, offer India a promising solution to overcome these challenges and achieve its ambitious clean energy goals.

What are Small Modular Reactors (SMRs)?

  • Small Modular Reactors (SMRs) are a type of nuclear reactor design that aims to offer several advantages over traditional large-scale nuclear reactors.
  • They are characterized by their smaller size, modular construction, and potential for enhanced safety features.
  • They are designed to be significantly smaller than conventional nuclear reactors, often with electrical outputs of up to 300 megawatts or less.

Decarbonization Challenges and the Role of SMRs

  • Global Dependence on Fossil Fuels: The transition from coal-fired power to clean energy sources presents significant challenges worldwide, with solar and wind alone often falling short of ensuring reliability and affordability.
  • Importance of Firm Power Generation: To achieve reliable grid operations and reduce costs in renewable energy-rich systems, the integration of at least one firm power-generating technology is crucial.

Advantages of general Nuclear Power Plans

  • Contribution of Nuclear Power: Nuclear power plants (NPPs) generate 10% of global electricity, significantly reducing natural gas demand and CO2 emissions.
  • Efficiency and Reliability: NPPs provide stable 24×7 power in all weather conditions, aiding grid stability more effectively than variable renewable energy sources.
  • Job Creation and Co-benefits: Nuclear power offers high-skill jobs and benefits in technology, manufacturing, and operations.

How SMRs outpower NPPs?

  • Addressing NPP Challenges: To counter challenges associated with conventional NPPs, many nations are developing SMRs with a capacity of up to 300 MW.
  • Benefits of SMRs:
  1. Enhanced Safety: SMRs feature lower core damage frequency and radioactive contamination risks compared to conventional NPPs.
  2. Passive Safety Features: Simpler design and passive safety measures reduce the potential for uncontrolled radioactive releases.
  3. Reduced Spent Fuel Storage: SMRs produce less spent nuclear fuel, easing storage concerns.
  4. Brownfield Sites Utilization: SMRs can repurpose existing infrastructure, minimizing land acquisition and displacement issues.

Reasons for SMR’s immediate consideration

  • Scalability: SMRs can be used individually or in combination to match varying energy needs, providing flexibility in deployment.
  • Reduced Environmental Footprint: SMRs emit fewer greenhouse gases, require less land, and have a smaller visual impact compared to larger reactors.
  • Flexibility: SMRs can power remote areas or off-grid communities, adapting to diverse energy requirements and locations.
  • Grid Stability: Offering steady baseload power, SMRs contribute to grid stability and complement intermittent renewables.
  • Waste Reduction: Some SMRs generate less nuclear waste due to efficient fuel use and smaller size, easing waste management.
  • Local Development: Building, operating, and maintaining SMRs create jobs and boost local economies.

Economic and Environmental Aspects

  • Sustainability: SMRs can operate for decades with high capacity factors exceeding 90%, contributing to sustainable energy generation.
  • Cost Trends: Capital costs for SMRs in the U.S. are around $6,000 per MW, expected to decline further post-2030 with increasing deployment.

India’s Path to Net-Zero with SMRs

  • Key Energy Goals: India aims to increase coal-based thermal power capacity and expand variable renewable energy sources to achieve net-zero emissions by 2070.
  • SMRs as a Catalyst: Integrating SMRs into thermal power plant sites can boost net-zero efforts and enhance energy security.

Harnessing SMRs

(1) Regulatory revamp

  • Efficient Regulation: A robust regulatory regime akin to civil aviation’s safety standards is essential for SMRs’ role in decarbonization.
  • Global Cooperation: International collaboration among regulators and organizations can streamline approvals and facilitate the safe deployment of SMRs.

(2) Legislative Changes and Collaboration:

  • Amendments to Atomic Energy Act: Private sector involvement in SMR setup requires legislative amendments while retaining fuel and waste control under government oversight.
  • Empowered Regulatory Board: Creating an independent regulatory board is crucial for overseeing the entire nuclear power generation cycle.
  • Strategic Nuclear Fuel Reserve: India’s ‘123 agreement’ allows strategic fuel reserves and reprocessing facilities under IAEA safeguards, ensuring fuel security.

(3) Enhancing Public Perception:

  • Public Engagement: The Department of Atomic Energy should disseminate comprehensive environmental and health data about civilian reactors to enhance public perception.
  • Consulting people: Many regions of India are already witnessing protests from local residents fuming over the installation of nuclear reactors in their vicinity.

Conclusion

  • Embracing small modular reactors presents India with an opportunity to accelerate its transition to clean energy, enhance grid stability, and achieve net-zero emissions.
  • The strategic deployment of SMRs, bolstered by sound legislation, international cooperation, and efficient regulation, can play a pivotal role in India’s journey towards a sustainable and energy-secure future.

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Ministry of External Affairs : Important Updates

Raisina Dialogue and its Significance

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Raisina Dialogue

Mains level: Read the attached story

Central Idea

  • Foreign Secretary has told a Parliament committee that the Raisina Dialogue is now among the most significant global level think tank events in the world.

What is Raisina Dialogue?

  • Flagship Geopolitical Conference: The Raisina Dialogue, founded in 2016, emerged as India’s flagship conference for discussions on global geopolitics and geo-economics.
  • Hosted by ORF: The Observer Research Foundation (ORF), an independent think tank, collaborates with the Ministry of External Affairs to host the Raisina Dialogue.

Emergence of the Dialogue

  • Geopolitical and Geo-economic Discourse: The Raisina Dialogue is a significant global-level think tank event that fosters cross-sectoral discussions on geopolitics and geo-economics.
  • Global Participation: Raisina Dialogue serves as a platform for engagement among policymakers, heads of states, cabinet ministers, local officials, private sector executives, media representatives, and scholars.
  • Inspired by Shangri-La Dialogue: Modeled after Singapore’s Shangri-La Dialogue, Raisina Dialogue facilitates multi-stakeholder dialogues on crucial global issues.

Political patronage to the dialogue

  • Participation: PM’s attendance and address at the 2016 Raisina Dialogue marked a turning point, elevating the event’s significance.
  • Shifting Paradigm: PM Modi’s presence elevated Raisina Dialogue from its modest beginnings in 2015 to a global focal point within a span of eight years.
  • Global Recognition: The conference gained international recognition and prominence, attracting participants of repute from across the world.

Significance: Reflecting Indian Perspective

  • Strategic Vision: Raisina Dialogue embodies a deliberate strategy to reflect and project India’s point of view on global matters.
  • India-Centric Thinking: In alignment with the government’s focus on promoting India-centric thinking, the conference portrays India’s stance on global issues.
  • Diverse Representation: The event brings together international sponsors, co-sponsors, and participants, fostering diverse viewpoints and critical appraisal of foreign policies.

Magnitude and Impact

  • Global Participation: The recent edition of the Raisina Dialogue held in March 2023 witnessed the presence of Italy’s Prime Minister and over 30 foreign ministers. Participants from more than 100 countries engaged in discussions.
  • Growing Influence: The conference’s stature and influence are evident through its widespread representation and discussions on a wide array of global issues.

Conclusion

  • The Raisina Dialogue stands as a remarkable testament to India’s increasing role and influence in the global arena.
  • As the Dialogue continues to shape discussions on geopolitics and geo-economics, it reinforces India’s position as a significant player on the world stage.

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Nuclear Energy

Small Modular Reactors

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Small modular reactors

Mains level: India's energy transition, Small modular reactors, advantages, challenges and way ahead

SMRs

What’s the news?

  • The rise of coal consumption in Europe, despite increased solar and wind power, underscores the need for reliable, low-carbon electricity sources.

Central idea

  • The global pursuit of decarbonization aligns with UN Sustainable Development Goal 7, which aims to provide affordable, reliable, sustainable, and modern energy for all. With fossil fuels still accounting for 82% of the world’s energy supply, decarbonizing the power sector is imperative. SMRs, a form of nuclear reactor, hold promise for India’s energy landscape by offering a solution to this challenge.

What are Small Modular Reactors (SMRs)?

  • Small Modular Reactors are a type of nuclear reactor design characterized by their smaller size, simplified construction, and modular nature.
  • Unlike traditional large nuclear power plants, which have a single reactor with a high-power output, SMRs are designed to have a smaller power capacity, typically ranging from a few megawatts (MW) to around 300 MW.
  • Their compact size and modular design allow for easier manufacturing, transport, and deployment.

What are the challenges of decarbonisation?

  • Insufficient Solar and Wind Energy: Policymakers acknowledge that relying solely on solar and wind energy is inadequate for ensuring affordable energy access globally.
  • Critical Minerals Demand Surge: The International Energy Agency predicts a potential 3.5-fold increase in demand for vital minerals (lithium, nickel, cobalt, rare earth elements) needed for clean-energy technologies by 2030.
  • Capital Intensive Development: Significant capital investments are required to establish new mines and processing facilities to meet the surging demand for critical minerals.
  • Environmental and Social Impacts: The rapid establishment of new mines and plants in regions like China, Indonesia, Africa, and South America carries potential environmental and social consequences.
  • Geopolitical and Resource Control Risks: The dominance of a few nations in mineral production and processing (50-100% global capacity) introduces geopolitical vulnerabilities and control risks.

Issues with Nuclear Power

  • Time and Cost Overruns: Conventional nuclear power plants often experience delays and cost overruns during construction.
  • Resource Dependency: Nuclear power plants’ reliance on uranium creates concerns about resource dependency and supply chain vulnerabilities.
  • Public Perception: Despite contributing 10% of global electricity and avoiding 180 billion cubic meters of natural gas demand and 1.5 billion tonnes of CO2 emissions annually, nuclear power faces public concerns related to accidents, waste disposal, and environmental impact.
  • Waste Management: Radioactive waste generated by nuclear power requires safe and effective long-term management.
  • Safety Risks: While nuclear power plants implement safety measures, events like Chernobyl and Fukushima underscore the potential for catastrophic accidents.
  • Environmental Impact: The nuclear power lifecycle, including uranium mining and waste storage, poses various environmental impacts.
  • Decommissioning Challenges: Properly decommissioning nuclear power plants presents technical and financial complexities.

Advantages of SMRs

  • Enhanced Safety and Simplified Design:
    • SMRs have a smaller core damage frequency and source term compared to conventional NPPs.
    • Incorporate enhanced seismic isolation and passive safety features.
    • Design simplicity reduces the potential for uncontrolled radioactive material release.
  • Lower Environmental Impact:
    • Due to their simplified design and improved safety features, SMRs have a reduced environmental impact.
    • Lower risk of radioactive material release.
  • Flexibility and Community Engagement:
    • SMRs can be safely installed in brownfield sites, minimizing the need for land acquisition and community displacement.
    • SMR projects foster better understanding and acceptance of nuclear power in local communities.
  • Energy Security and Fuel Efficiency:
    • SMRs contribute to energy security by diversifying energy sources and reducing reliance on fossil fuels.
    • Many land-based SMRs use low-enriched uranium, sourced from countries with uranium mines and enrichment facilities.
  • Cost-Effectiveness and Long Operational Lifespan:
    • The Projected levelized cost of electricity from SMRs is between $60-90 per MWh.
    • Costs are expected to decrease as deployment and manufacturing efficiency improve.
    • SMRs are designed for over 40 years of operation, providing stable, long-term, low-carbon electricity.
  • Coal-to-Nuclear Transition:
    • Deploying SMRs aids in transitioning from coal-based power generation to nuclear energy.
    • Facilitates progress toward net-zero emissions

Integration of SMRs with the National Grid

  • Energy Generation Enhancement:
    • India’s Central Electricity Authority (CEA) projects a need to increase coal-based thermal power plants (TPPs) capacity from 212,000 MW to 259,000 MW by 2032.
    • The Generation capacity of Variable Renewable Energy (VRE) sources is projected to grow from 130,000 MW to 486,000 MW.
  • Energy Storage Requirement:
    • Integration of power from VRE sources with the national grid requires additional energy storage: Battery storage: 47,000 MW/236 GWh and Hydroelectric facilities: 27,000 MW.
  • Projected Energy Contribution by 2031-2032:
    • TPPs are expected to provide more than 50% of India’s total electricity generation.
    • VRE sources are projected to contribute around 35%.
    • NPPs, including SMRs, are estimated to contribute 4.4%.

SMRs

Way Forward

  • Global Regulatory Alignment:
    • Facilitate collaboration among countries adopting nuclear energy.
    • Harmonize regulatory requirements under the guidance of the International Atomic Energy Agency (IAEA) to expedite approvals for standardized Small Modular Reactors (SMRs).
  • Energy Mix Optimization:
    • Balancing coal-based thermal power plants (TPPs), Variable Renewable Energy (VRE) sources, and nuclear power, including SMRs.
    • Prioritize capacity enhancement of TPPs and VRE sources to meet rising energy demands.
  • Legal and Regulatory Adaptation:
    • Amend the Atomic Energy Act to enable private sector involvement in SMRs.
    • Maintain government control over nuclear fuel, waste, and security.
  • Regulatory Empowerment:
    • Enact a law to establish an independent regulatory board overseeing all nuclear power generation stages.
    • Ensure compliance with safety, security, and safeguards measures.
  • Secure SMR Operation: Retain government control over SMR security while facilitating private sector operation under appropriate supervision.

Conclusion

  • Small modular reactors represent a promising avenue for India’s energy transition, offering enhanced safety, scalability, and alignment with decarbonization goals. Addressing regulatory, legal, and investment challenges can catalyze India’s shift towards a sustainable and secure energy future.

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

Issues related to Seeds in Indian Agriculture

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Emerging seed technology and applications

Mains level: Seed Technology for Sustainable Growth, challenges and opportunities

What’s the news?

  • Agriculture and allied sectors are central to the Indian economy. Keeping this and a sustainable future in mind, the Indian government, quite rightly, is promoting technology-enabled sustainable farming, including natural, regenerative, and organic systems, during its G20 presidency.

Central idea

  • Despite achieving food security through the production of 330 MT of food grains, challenges persist in meeting the demand for coarse cereals, pulses, oil seeds, and vegetables. These shortcomings contribute to a large undernourished population, including a substantial child wasting rate of 19.3%.

The Rise of the Indian Seed Industry

  • Strong Foundation (1960s): The National Seeds Corporation was established, setting the groundwork for the industry’s growth.
  • Policy Impetus (Late 1980s): Proactive policies and regulatory support boosted the industry’s development.
  • Legislative Landmark (2001): The Protection of Plant Varieties and Farmers Rights Act was enacted, bolstering intellectual property rights and innovation.
  • Technological Transition (2002): The introduction of BT cotton hybrids marked a shift toward technology-driven approaches for better productivity and sustainability.
  • Current Market Size: The Indian seed market is estimated at $4.0 to $6.0 billion, with untapped potential for global prominence.
  • Millet Leadership: India’s global leadership in millet production positions it to capture the international seed market.
  • Public-Private Collaboration: Collaboration between ICAR research institutions and private companies enhances the development of hybrid varieties.

Major determinants of profitability in agriculture

  • Seed Quality and Varieties: High-quality seeds and improved crop varieties significantly impact profitability. Improved seeds can contribute to a yield advantage of up to 15-20% beyond the genetic potential under different cultivation conditions.
  • Input Costs: The costs of inputs like seeds, fertilizers, pesticides, and irrigation influence profitability. The cost of seed typically constitutes around 3 to 6% of the total cost of production, but it can provide up to a 15-20% yield advantage.
  • Land and Soil Management: Effective land preparation, soil health management, and crop rotation practices are critical for sustained profitability. Sustainable land practices help maintain productivity over the long term.
  • Water Management: Proper irrigation methods and access to reliable water sources impact profitability. Effective water management can reduce waste and increase yields.
  • Labor Efficiency: Efficient labor utilization, including timely planting, weeding, and harvesting, optimizes production processes and reduces labor costs.
  • Technology Adoption: Modern agricultural technologies like precision farming and mechanization enhance efficiency and reduce resource waste. Applied seed technologies can ensure good performance even under unfavorable conditions.
  • Market Access and Pricing: Access to markets and fair prices for agricultural products directly affect profitability. Public-private partnerships have improved Variety Replacement Rates (VRR) and Seed Replacement Rates (SRR) in field crops and vegetables.

Challenges Ahead for the Indian Seed Industry

  • Climate Variability: Unpredictable weather patterns and shifting climate conditions challenge consistent seed production, impacting crop yields and resilience.
  • Resource Scarcity: Diminishing natural resources like water and arable land strain the industry’s capacity to meet the escalating demand for quality seeds.
  • Regulatory Framework: Navigating evolving and intricate regulations can hinder the timely release of new seed varieties, obstructing innovation.
  • Market Access: Equitable access to quality seeds, particularly in remote or economically disadvantaged regions, remains a significant challenge.
  • Global Competition: The fiercely competitive international seed market demands continuous improvement in quality and variety offerings.
  • Intellectual Property Protection: Safeguarding intellectual property rights while encouraging open innovation poses a delicate balancing act.
  • Consumer Preferences: Adapting seed varieties to evolving consumer preferences concerning nutrition, taste, and environmental impact is a dynamic challenge.

Emerging Seed Technologies

  • Priming and Enhancement Protocols: These protocols prepare seeds to excel under various growing conditions. Particularly valuable in regions experiencing stressors, they boost seed performance independently or in conjunction with the seed’s genetic attributes.
  • Film Coating and Pelleting: Film coating involves a protective layer applied to seeds, aiding precise planting and acting as a vehicle for pesticides, nutrients, and growth promoters. Pelleting shares similar benefits, enhancing seed protection and handling.
  • Seed Treatments: Seed treatments encompass the application of biological or chemical pesticides to seeds, with contact or systemic action against pests and diseases during germination and early growth stages.
  • Bio-stimulants and Nutrients: Integration of bio-stimulants and nutrients into seeds fosters improved germination rates and rapid seedling establishment, contributing to overall plant vitality and productivity.
  • AI-Responsive Sensors/Substances: Seeds infused with AI-responsive sensors or substances can adjust plant responses to external stimuli, bolstering adaptability and performance across varying conditions.
  • Clean and Green Planting Materials: This technology revolves around generating environmentally friendly and high-performing planting materials for horticultural crops, aligning with sustainable cultivation practices.
  • Genetic Advancements in Variety Development: Genetic enhancements play a pivotal role in creating seed varieties with amplified traits such as disease resistance, augmented yield, and enhanced adaptability to shifting environments.
  • Metabolic Cues and Molecules: Seed enrichment with molecules or metabolites that act as cues in biological pathways can augment metabolic processes and overall plant well-being.

Way Forward: Embracing Seed Technology for Sustainable Growth

  • Research and Innovation: Invest in innovative research for climate-resilient, high-yielding seed varieties.
  • Quality Assurance: Guarantee reliable access to quality-assured seeds to bolster the seed market’s stature.
  • Tech Transfer: Facilitate technology dissemination to fields via farmer training and extension services
  • Empower Smallholders: Ensure affordable, quality seeds and provide capacity-building programs

Conclusion

  • As India forges ahead with sustainable agriculture, embracing seed technologies emerges as a linchpin for progress. With robust regulatory mechanisms, India’s journey towards a Clean Green Mission can set the stage for a greener, more resilient agricultural future.

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Historical and Archaeological Findings in News

Species in news: Tharosaurus Indicus

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Tharosaurus Indicus

Mains level: NA

thar

Central Idea

  • The fossilized remains of an ancient, plant-eating dicraeosaurid dinosaur named ‘Tharosaurus Indicus’ were recently recovered near Jaisalmer.

Tharosaurus Indicus

  • Tharosaurus indicus is the name given to an ancient species of dinosaur discovered in the Thar Desert region of Jaisalmer, India.
  • It is a type of dicraeosaurid dinosaur, which was a group of long-necked, plant-eating dinosaurs that lived during the Jurassic period.
  • The fossils of Tharosaurus indicus were found to be around 167 million years old, making them one of the oldest known dicraeosaurids and diplodocoids globally.

Significance of the discovery

  • Dicraeosaurids are characterized by their relatively shorter necks compared to other sauropod dinosaurs and were known for their unique body proportions.
  • This newly discovered species provides valuable insights into the diversity of prehistoric life that existed in the region during ancient times.
  • The name “Tharosaurus indicus” reflects its origin, with “Thar” referring to the Thar Desert and “indicus” indicating its origin in India.
  • This discovery showcases India’s historical significance in the field of paleontology and contributes to our understanding of dinosaur evolution on a global scale.

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Global Geological And Climatic Events

Perseid Meteor Shower to be visible soon

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Perseid Metor Shower

Mains level: NA

perseid

Central Idea

  • The Perseid meteor shower is anticipated to peak around August 13.

Perseid Meteor Shower

  • Origin of Phenomenon: The Perseid meteor shower originates from Earth’s passage through debris consisting of ice, rock, and dust, shed by Comet Swift-Tuttle.
  • Orbital details: This comet, with an orbital period of 133 years, last illuminated the skies in 1992 and will not grace Earth’s vicinity until 2125, as confirmed by NASA.
  • Historic Discovery: Astronomers Lewis Swift and Horace Tuttle discovered Comet Swift-Tuttle in 1862, laying the foundation for understanding this celestial spectacle.

Its occurrence

  • Annual Affair: A time-honoured spectacle, the Perseids meteor shower reaches its zenith every mid-August, enchanting both astronomers and laymen with its celestial display.
  • Residual Cosmic Debris: The Perseids meteor shower unfolds as our planet intersects the path of cosmic remnants cast adrift by Comet Swift-Tuttle. This cosmic cloud spans approximately 27 km in width.
  • Dazzling Cascade: Amidst this cosmic choreography, a breathtaking scene emerges as Earth encounters these fragments. During the peak, between 160 and 200 meteors elegantly streak through the atmosphere each hour, leaving behind a luminous trail of splendour.
  • Speed and Splendor: Travelling at a staggering speed of around 214,000 km per hour, these meteors ignite a fiery display as they disintegrate nearly 100 km above the Earth’s surface.

What are Meteoric Showers?

  • Cosmic Origins: Meteors, fragments of rock and ice, are expelled from comets during their celestial orbits around the sun. The Earth’s atmosphere heats these space rocks as they descend, leaving luminous streaks of gas in their wake.
  • A Symphony of Debris: Meteor showers unfold when our planet traverses the debris trail left behind by comets or asteroids during their celestial journey. A cascade of meteorites gracing the skies in unison constitutes a meteor shower.
  • Celestial Tapestry: NASA’s records attest to the existence of over 30 meteor showers annually, painting the skies with celestial beauty observable from our terrestrial vantage point.

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Services PMI at 13-Year High

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Purchasing Managers' Index (PMI)

Mains level: NA

Central Idea

  • India’s services sector has exhibited significant growth, as reflected by the S&P Global India Services Purchasing Managers’ Index (PMI), which reached a 13-year high of 62.3 in July.
  • The recovery is driven by increased demand, new business opportunities, and robust export orders.
  • However, challenges such as rising input costs and cautious output pricing indicate a nuanced landscape.

Service Sector

The service sector, also known as the tertiary sector, includes a wide range of economic activities that are focused on providing intangible goods and services to customers.

Some examples of activities that fall under the service sector include:

  1. Hospitality and tourism: This includes activities such as hotels, restaurants, travel agencies, and tour operators.
  2. Retail and wholesale trade: This includes businesses that buy and sell goods, such as supermarkets, department stores, and online retailers.
  3. Financial services: This includes banks, insurance companies, and investment firms.
  4. Professional and business services: This includes activities such as legal services, accounting, consulting, and advertising.
  5. Information and communication technology: This includes activities such as software development, telecommunications, and data processing.
  6. Healthcare and social assistance: This includes activities such as hospitals, clinics, nursing homes, and social services.
  7. Education and training: This includes activities such as schools, colleges, universities, and vocational training.
  8. Transportation and logistics: This includes activities such as shipping, warehousing, and distribution.

 

Purchasing Managers’ Index (PMI)

  • PMI is an indicator of business activity — both in the manufacturing and services sectors.
  • The S&P Global India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies.
  • It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
  • It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.

How is the PMI derived?

  • The PMI is derived from a series of qualitative questions.
  • Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.

How does one read the PMI?

  • A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
  • Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
  • If the figure is higher than the previous month’s then the economy is expanding at a faster rate. If it is lower than the previous month then it is growing at a lower rate.

Recent Feat Achieved

  • Output Levels: The survey-based index shows that output levels experienced the fastest growth since June 2010, driven by robust demand and increased new business gains.
  • Job Creation: Despite the surge in workload, job creation remained modest, with a “slight” pace of hiring. Firms employed a mix of part-time, full-time, permanent, and temporary staff.
  • Rising Input Costs: Input costs recorded the fastest increase in 13 months, primarily due to higher food, labor, and transportation expenses.
  • Output Price Dynamics: On the other hand, firms displayed caution in their output pricing strategy, with output prices increasing at the slowest rate in three months. This approach could be attributed to the desire to secure new contracts.
  • Overseas Expansion: Export orders received a significant boost, with firms reporting the second-fastest increase in export orders since the inception of the index in September 2014.
  • Key Growth Sources: Countries like Bangladesh, Nepal, Sri Lanka, and the UAE emerged as key sources of growth in export orders.

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Primary and Secondary Education – RTE, Education Policy, SEQI, RMSA, Committee Reports, etc.

Smartphone Use among Schoolchildren

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Read the attached story

Central Idea

  • The report, titled “State of Elementary Education in Rural India” was recently released.
  • It highlights the prevailing digital landscape in rural communities regarding Education.

State of Elementary Education in India

  • It is a comprehensive survey conducted across 21 Indian States, encompassing 6,229 parents of rural schoolchildren aged 6 to 16.
  • It is released by conducted by the Development Intelligence Unit (DIU).
  • It has uncovered a notable trend: children in rural areas predominantly employ smartphones for entertainment purposes rather than for educational pursuits.

Key Highlights

(1) Smartphone Use and Entertainment

  • Survey Overview: The survey found that 49.3% of rural students have access to smartphones, shaping their digital engagement.
  • Entertainment Dominance: Among parents whose children have access to gadgets, a significant 76.7% noted that their children primarily use smartphones for playing video games, underscoring the prevalence of entertainment-related activities.
  • Media Consumption: The survey revealed that 56.6% of students with access to gadgets use smartphones for downloading and watching movies, while 47.3% engage in downloading and listening to music.
  • Educational Utilization: In contrast, only 34% of students employ smartphones for study downloads, and merely 18% access online learning resources such as tutorials.

(2) Demographics and Education Levels:

  • Age and Smartphone Access: The survey delineated that students in higher grades (Class VIII and above) have greater access to smartphones (58.32%) compared to their counterparts in lower grades (Classes I-III) with access at 42.1%.
  • Aspirations for Education: An encouraging statistic emerged, with 78% of parents aspiring to educate their daughters to at least graduation level, and 82% aiming for the same for their sons.

(3) Parental Participation and Insights

  • Learning Conversations: The survey indicated that only 40% of parents engage in daily conversations with their children about school-related learning. Another 32% have such discussions a few days a week.
  • Dropout Insights: Among a subset of 56 respondents, reasons for children dropping out of school included daughters needing to contribute to family income (36.8%), lack of interest in studies (31.6%), and household responsibilities (21.1%). For boys, the primary reason was disinterest in studies (71.8%), followed by the need to assist with family earnings (48.7%).
  • Parent-Teacher Meetings: Impressively, 84% of parents reported regular attendance at parent-teacher meetings. Challenges hindering participation included short notice and a lack of willingness.

Conclusion

  • Despite limited access, these findings emphasize the need for balanced digital engagement that promotes both educational growth and recreational activities.
  • The survey’s insights into parental aspirations, conversations around learning, and the challenges of dropout rates provide a comprehensive picture of the rural education landscape and underscore the importance of holistic educational approaches.

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Foreign Policy Watch: India-Africa

ECOWAS and Niger Coup: Challenges and Potential Responses

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ECOWAS

Mains level: Read the attached story

ecowas

Central Idea

  • The recent coup in Niger has brought the Economic Community of West African States (ECOWAS) into the spotlight as it grapples with responding to the political crisis in the region.
  • As Niger faces economic hardships and military intervention by regional players looms, the role of ECOWAS is under scrutiny.

Understanding ECOWAS

  • Formation and Membership: Established in 1975, ECOWAS aims to foster economic integration among its 15 member countries, including Benin, Burkina Faso, Ghana, Nigeria, and more.
  • Objective: The organization envisions a borderless region based on democratic principles and good governance.
  • Economic Goals: ECOWAS seeks to create a unified trading bloc, single currency, and enhanced cooperation in sectors such as industry, energy, and telecommunications.

ECOWAS in Conflict Resolution

  • Regional Peacekeeping: ECOWAS has played a role in resolving conflicts by deploying peacekeeping missions. Notable examples include ECOMOG’s involvement in Liberia and Sierra Leone during the 1990s and early 2000s.
  • Gambia Crisis: In 2017, ECOWAS intervened in Gambia, ensuring the peaceful transfer of power after then-President Yahya Jammeh refused to step down following an election defeat.
  • Challenges and Successes: While ECOWAS has effectively resolved conflicts in some cases, it faces challenges due to differing interests among member countries and evolving security threats.

ECOWAS’s Response to Niger Coup

  • Potential Military Intervention: ECOWAS has hinted at possible military intervention in Niger. However, regional challenges, including shared borders with other military-led nations, could complicate intervention plans.
  • Support for Coups: Some military coups in West Africa have been justified by leaders citing terrorism and security challenges, accusing civilian governments of inadequacy.
  • Security Situation: The ECOWAS Commission President reported a significant rise in terrorist attacks in the region, with a substantial death toll and refugees fleeing the violence.

Economic Measures and Sanctions

  • Economic Sanctions: ECOWAS has previously imposed economic sanctions on countries undergoing political turmoil. However, the efficacy of these measures is questionable, especially when nations are grappling with economic difficulties.
  • France’s Role: France’s historical ties to Niger and the presence of foreign troops have fueled local sentiments against foreign involvement, creating complexities for potential interventions.

Challenges and Dilemmas

  • Leadership Dynamics: The current chairman of ECOWAS, Nigerian President Bola Ahmed Tinubu, advocates for military intervention in Niger. However, internal opposition and conflicting interests within ECOWAS member states complicate decision-making.
  • Complexity of the Situation: The unique circumstances of each nation undergoing turmoil require tailored responses. The Niger coup’s leader, Gen. Abdourahmane Tchiani, has a history with ECOWAS peacekeeping missions.

Conclusion

  • ECOWAS’s response to the Niger coup underscores the complexity of regional dynamics, the challenges of military intervention, and the delicate balance between security and democratic governance.
  • As the organization grapples with finding an effective solution, its role as a mediator and peacekeeping force in West Africa continues to evolve in response to the changing geopolitical landscape.

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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Learning from the CHIPS Act of the U.S.

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Semiconductor policy and related updates

Mains level: India's Semiconductor Policy, CHIPS ACT and lessons for India

What’s the news?

  • The United States’ CHIPS Act, which authorizes substantial funding over five years to boost its semiconductor industry, celebrates its one-year anniversary.

Central idea

  • Industrial policies have become pivotal tools for nations to secure competitiveness, innovation, and national security. The CHIPS Act exemplifies such an endeavor, allocating $52.7 billion to bolster the American semiconductor sector. While not a blueprint, this Act offers essential lessons for India’s semiconductor strategy.

What is the CHIPS Act?

  • The CHIPS Act, or the Creating Helpful Incentives to Produce Semiconductors for America Act, is a United States federal law that was enacted in 2022.
  • It aims to address various challenges and concerns related to the semiconductor industry in the United States.
  • The CHIPS Act was introduced to boost American competitiveness, innovation, and national security in the semiconductor sector. It recognizes the strategic importance of semiconductor manufacturing and technology leadership for economic growth and national defense.

Notable features of the CHIPS Act

  • Significant Funding: The CHIPS Act authorizes $52.7 billion over five years to boost American competitiveness, innovation, and national security in the semiconductor industry.
  • Cooperation Across Government: The Act involves cooperation and coordination between multiple government arms, with separate funds allocated to different departments, including the Department of Commerce, the Department of Defense, the Department of State, and the National Science Foundation.
  • Lead Agency: The Department of Commerce is designated as the lead agency responsible for administering the $50 billion CHIPS for America Fund, which focuses on accelerating semiconductor manufacturing and research within the United States.
  • National Semiconductor Technology Center (NSTC): A nodal agency, the NSTC, is created to collaborate with industry and educational institutions to develop a competent semiconductor engineering workforce and promote growth in the field.
  • Investment Principals and Financial Structuring Directors: The CHIPS Act establishes a CHIPS Program Office (CPO) responsible for assessing project viability and attracting private sector investments. Investment Principals and Financial Structuring Directors are hired to catalyze private sector involvement.
  • Future Research Focus: The Act doesn’t solely focus on immediate manufacturing needs. It allocates funding, such as the $11 billion investment in future research, which includes areas like advanced packaging techniques, to ensure the country’s competitiveness in the long term.
  • Industrial Policy Template: The CHIPS Act provides a valuable template for effective industrial policy in the semiconductor industry, showcasing institutionalized administrative capacity that supports continuity beyond changes in government.

India’s semiconductor policy

  • MeitY’s Leadership: MeitY plays a pivotal role in formulating and executing India’s semiconductor strategy. The ministry’s oversight spans various aspects, including manufacturing, assembly, design, and compound semiconductors.
  • India Semiconductor Mission (ISM): Within MeitY, the India Semiconductor Mission (ISM) has been established to focus on manufacturing, assembly, and displays. ISM aims to foster indigenous production capabilities by collaborating with industry and academic institutions.
  • C-DAC for Chip Design: The Centre for Development of Advanced Computing (C-DAC), another MeitY initiative, focuses on chip design. By investing in research and development, C-DAC aims to enhance India’s expertise in chip design and innovation.
  • Chips2 Startup (C2S) Program: MeitY’s C2S program collaborates with universities and colleges to cultivate a skilled semiconductor engineering workforce. This initiative emphasizes the importance of industry-aligned training programs to cater to the sector’s specific needs.
  • Manufacturing and Export Incentives: To attract investment and promote domestic manufacturing, India offers incentives such as the Production Linked Incentive (PLI) scheme. This encourages semiconductor companies to establish manufacturing facilities in India.

Lessons for India

  • Whole-of-Government Approach: India’s semiconductor strategy should adopt a whole-of-government approach, similar to the CHIPS Act, to ensure coordination and continuity across different government departments and agencies involved in semiconductor-related initiatives.
  • Collaboration and Coordination: Like the CHIPS Act, India should emphasize collaboration between industry, academia, and government to build a skilled semiconductor workforce and ensure alignment between education and industry needs.
  • Certification of Training Programs: Instead of directly running training programs, India should focus on certifying quality training programs offered by universities and private training institutes to ensure a competent workforce in the semiconductor sector.
  • Long-Term Vision: India’s semiconductor strategy should not only address immediate manufacturing needs but also outline a long-term vision for sustained growth and leadership in the industry.
  • Public-Private Collaboration: India should encourage public-private collaboration to attract private sector investments and leverage the expertise of both government and industry for semiconductor development.
  • Flexibility in Policy Implementation: India’s semiconductor strategy should be adaptable, allowing for adjustments based on changing industry trends and challenges while aligning with the nation’s goals.

Conclusion

  • The CHIPS Act serves as a template for effective industrial policy in the semiconductor sector. By analyzing its strengths and weaknesses, India can learn valuable lessons for structuring its own strategy to achieve competitiveness, innovation, and national security in semiconductors. Effective execution and a comprehensive approach are key takeaways for India’s policymakers.

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