Note4Students
From UPSC perspective, the following things are important :
Prelims level: Vaibhav Fellowship
Mains level: Not Much
The centre has launched VAIBHAV Fellowship scheme for the Indian Diaspora abroad on National Science Day.
VAIBHAV fellowship
- The Vaibhav Fellowship is a program that invites overseas Indian scientists and researchers to work with Indian institutions and universities for a period of 2-3 weeks.
- The program is open to individuals of Indian origin who are working in fields such as science, technology, engineering, and mathematics (STEM).
- The fellowship will provide opportunities for the diaspora to collaborate with Indian scientists and researchers, participate in conferences, and contribute to the development of the country’s science and technology sector.
Objectives of the Fellowship
- To create a platform for Indian diaspora scientists and researchers to connect with their counterparts in India and contribute to the country’s growth in the field of science and technology.
- To foster collaboration between Indian and overseas scientists and researchers, promote knowledge exchange, and build a network of professionals who can contribute to the development of the country.
Key facts
- Duration: The fellowship offers researchers an opportunity to work for a minimum of one month to a maximum of two months a year with a research institution or an academic institution in India.
- Corpus: Three years with the government offering the researchers an amount of up to Rs 37 lakh for the entire period.
- Eligibility: Researchers from institutions featuring in the top 500 QS World University Rankings will be eligible for the fellowship.
- Who can apply: The applicant should be a Non-Resident Indian (NRI), Person of Indian Origin (PIO) or Overseas Citizen of India (OCI) and she or he must have obtained Ph.D/M.D/M.S degree from a recognized University.
Significance of the fellowship
- The fellowship provides a platform for Indian scientists and researchers to collaborate with their counterparts abroad, which can help in the exchange of ideas and knowledge.
- It also provides an opportunity for the Indian diaspora to contribute to the development of their home country.
- By engaging with the Indian institutions and universities, the diaspora can bring in new ideas, technologies, and expertise that can help in the country’s development.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Heat waves
Mains level: Climate Change induced rising temperatures, Heatwaves, Socio-economic impact and measures
Central Idea
- Heat waves have become a major concern for India this year. The scorching summer heat has started prematurely, as per the recent IMD reports. If the record temperatures of the recent past are any indication, the heat wave is likely to become more intense. Rising temperatures lead to several health problems, from dehydration and heat exhaustion to more severe conditions like heatstroke. They also affect the economy and the environment.
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What is Heat wave?
- A heatwave is a prolonged period of abnormally hot weather.
- Heatwaves usually last for several days or weeks and can occur in both dry and humid climates. They are characterized by temperatures that are significantly higher than the average for a particular region during that time of year.
- This is because climate change is causing a rise in global temperatures. As the planet heats up, it leads to more extreme weather events, such as heat waves. Its geography makes India particularly vulnerable to these events.
Heatwaves in India
- In India Heat waves typically occur from March to June, and in some rare cases, even extend till July.
- On an average, five-six heat wave events occur every year over the northern parts of the country.
- Single events can last weeks, occur consecutively, and can impact large population.
- Its geography makes India particularly vulnerable to these events.
Some of the hottest summers on record in recent years that India has experienced
- In May 2016, Phalodi in Rajasthan registered 51 degrees Celsius, the highest temperature ever recorded in the country.
- In 2021, India saw its hottest day on May 22, with the temperature touching 48 degrees Celsius in Barmer, also in Rajasthan.
- In 2022, Jaipur experienced a severe heatwave. Rajasthan’s capital recorded 45 degrees Celsius in April a record for the city for the month.
- Delhi, Agra, Pilani and Rohtak are among the well-known hot cities in India, where temperatures, of late, have gone up to 43 degrees Celsius in early summer
Link: Climate change and Heat waves
- Rising heat waves: Climate change is directly linked to the increase in the frequency, intensity, and duration of heatwaves around the world.
- More severe and more frequent: As the Earth’s climate continues to warm, heatwaves are becoming more severe and occurring more frequently.
- Global warming: This is because global warming is causing changes in the atmosphere, such as increased greenhouse gas concentrations, which trap heat and cause temperatures to rise.
- For instance: Climate change is also causing heatwaves to last longer. A study published in the journal Environmental Research Letters found that heatwaves are lasting an average of 2.5 days longer than they did in the middle of the 20th century.
- Impact on Health: Heat-related illnesses, such as heat exhaustion and heatstroke, are becoming more common, particularly among vulnerable groups such as the elderly, children, and outdoor workers.
- In addition, heat waves can exacerbate existing health problems, such as respiratory and cardiovascular diseases.
- Impact on the environment
- One of the biggest problems is the depletion of water resources:
- Water sources are drying up as temperatures rise, leading to crises in many parts of the country.
- As people try to keep cool, they use more air conditioning, increasing electricity use. This leads to an increase in the use of fossil fuels, which significantly contributes to air pollution.
- Impact on agriculture:
- Impact on environment in turn, leads to agricultural problems, with crops failing and farmers struggling to make a living.
- Given that around 40 per cent of India’s population is engaged in agriculture, this is a significant concern.
- Reports are already coming from Punjab and Western Uttar Pradesh that the early heatwave has affected the growth of wheat crops and is expected to negatively affect the crop to the tune of 20 per cent.
- Impact on growth:
- The healthcare costs associated with heat-related illnesses can be significant, particularly for vulnerable groups who may not have access to affordable healthcare.
- In addition, heat waves can lead to a decrease in worker productivity, which can impact economic growth.
What can be done to deal with such problems?
- Increase public awareness: People need to be educated about the impact of rising temperatures on their health, the environment, and the economy. This can be done through public campaigns, schools, and the media.
- Increase the use of renewable energy: India has already made significant progress in this area. However, much remains to be done. The government could incentivise individuals and businesses to invest in renewable energy, such as solar panels. This would help reduce the impact of rising temperatures, create new jobs, and stimulate economic growth.
- Improving water management: This could include introducing more efficient irrigation systems, better rainwater harvesting, and using recycled water for non-potable purposes. This would help to conserve water resources and reduce the impact of rising temperatures on agriculture.
- Investing in infrastructure that can cope with extreme temperatures: This could include the construction of roads and buildings that are designed to withstand high temperatures, as well as the development of more efficient cooling systems that use less energy.
Conclusion
- The rising heat wave in India is a serious concern that needs to be addressed urgently. The impacts of rising temperatures on human health, the environment, and the economy are significant. However, with the right strategies in place, it is possible to mitigate the impact of rising temperatures and ensure a sustainable future for the country.
Mains Question
Q. Climate change is exacerbating the problem of heat waves. In this backdrop discuss its socioeconomic impact and what measures can be done to tackle this problem?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sustainable Development Goals
Mains level: India's progress in achieving SDG targets
Central Idea
- A recent analysis published in The Lancet has concluded that India is not on-target to achieve 19 of the 33 Sustainable Development Goals (SDGs) indicators. The critical off-target indicators include access to basic services, wasting and overweight children, anaemia, child marriage, partner violence, tobacco use, and modern contraceptive use.
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Analysis
- On-Target: Districts that have not met the SDG target by 2021 and have observed a magnitude of improvement between 2016 and 2021 sufficient to meet the target by 2030.
- Off-Target: Districts that have not met the SDG target by 2021 and either observed worsening between 2016 and 2021 or observed an insufficient magnitude of improvement between 2016 and 2021. If these districts continue with either of these trends, they will not meet their targets by 2030.
- Progress in: Indicators shows the progress in reducing adolescent pregnancy, tobacco use in women, multidimensional poverty, teenage sexual violence, and improving electricity access.
- Areas where more efforts are needed: More efforts are needed for reducing anaemia in women, improving access to basic services, providing health insurance for women, and reducing anaemia in pregnant women.
Sustainable Development Goals (SDGs)
- The SDGs, otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity.
- The SDGs were adopted by the United Nations in 2015 with a vision to achieve a better and more sustainable future for all. The 17 SDGs came into force with effect from 1st January 2016 as a part of 2030 Agenda for Sustainable Development.
- India is one of the signatory countries that has committed to achieving these goals by 2030.
- Though not legally binding, the SDGs have become de facto international obligations and have the potential to reorient domestic spending priorities of the countries during the next fifteen years.
- Countries are expected to take ownership and establish a national framework for achieving these goals.
Targets set for each of the SDGs
- No Poverty: By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day.
- Zero Hunger: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round.
- Quality Education: By 2030, ensure that all girls and boys complete free, equitable and quality primary and secondary education leading to relevant and effective learning outcomes.
- Gender Equality: End all forms of discrimination, violence, harmful practices against all women and girls everywhere. Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life.
India’s progress towards achieving SDGs so far
- SDG 1 (No Poverty): India has made significant progress in reducing poverty, with the poverty rate declining from 21.9% in 2011-12 to 4.4% in 2020. The government’s efforts to provide financial inclusion and social protection schemes have contributed to this progress.
- SDG 2 (Zero Hunger): India has made progress in reducing hunger, with the prevalence of undernourishment declining from 17.3% in 2004-06 to 14% in 2017-19. The government’s initiatives such as the National Food Security Act and the Pradhan Mantri Garib Kalyan Anna Yojana have contributed to this progress.
- SDG 3 (Good Health and Well-being): India has made progress in improving maternal and child health, with maternal mortality ratio declining from 167 per 100,000 live births in 2011-13 to 113 in 2016-18. The government’s efforts to strengthen health systems and increase access to healthcare services have contributed to this progress.
- SDG 4 (Quality Education): India has made progress in improving access to education, with the gross enrolment ratio for primary education increasing from 93.4% in 2014-15 to 94.3% in 2019-20. The government’s initiatives such as the Sarva Shiksha Abhiyan and the Right to Education Act have contributed to this progress.
- SDG 5 (Gender Equality): India has made progress in improving gender equality, with the sex ratio at birth increasing from 918 in 2011 to 934 in 2020. The government’s initiatives such as the Beti Bachao Beti Padhao and the Maternity Benefit Programme have contributed to this progress.
- Multidimensional poverty declined: At a compounded annual average rate of 4.8 per cent per year in 2005-2011 and more than double that pace at 10.3 per cent a year during 2011-2021.
- Declining child mortality: There are some issues with the 2011 child-mortality data, but for each of the 10 components of the MPI index, the rate of decline in 2011-2021 is considerably faster than in 2005-2011.
- Average decline in overall indicators: The average equally weighted decline for nine indicators was 1.9 per cent per annum in 2005-2011 and a rate of 16.6 per cent per annum, more than eight times higher in 2011-2021.
- Consumption inequality decline: Every single household survey or analysis has shown that consumption inequality declined during 2011-2021. This is consistent with the above finding of highly inclusive growth during 2011-2021.
Conclusion
- The analysis provides a valuable tool for policymakers to address the gaps and focus on the indicators that require more attention, thereby improving the well-being of its citizens and creating a sustainable future for all.
Mains question
Q. What are Sustainable Development Goals (SDGs)? Discuss India’s progress made so far in achieving these targets
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Earthquakes, India's earthquake prone regions
Mains level: India's policy on Earthquake preparedness
Central Idea
- The destruction caused by earthquakes in Turkey should be alarming for India. Over the last three weeks, tremors have been felt in Himalayan states. Moreover, geologists have warned of a probable massive earthquake in the Himalayan state. In this context the Delhi High Court asked the state government to file a status report and action plan on the structural safety of buildings in Delhi. Nearly 58 per cent of the Indian landmass is vulnerable to earthquakes and the concerns that have been raised by the court need a policy response instead.
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- According to the theory of plate tectonics, the Earth’s crust and upper mantle are made of large rigid plates that can move relative to one another.
- Slip on faults near the plate boundaries can result in earthquakes.
- The point inside the Earth where the earthquake rupture starts is called the focus or hypocentre.
- The point directly above it on the surface of the Earth is the epicentre.
What is missing in India’s policy on earthquake preparedness?
- Current policy operates primarily at the scale of structural details: Guided by the National Building Codes, this includes specifying dimensions of the structural members columns, beams, etc. and details of the reinforcements that join these elements together.
- While scientifically sound, this view on earthquake preparedness is myopic:
- It ignores the buildings that were constructed before such codes were published in 1962. Such buildings form a large part of our cities.
- It assumes infallibility in the processes of enforcement, relying only on penalisation and illegalities.
- It treats earthquakes as a problem of individual buildings, as if they exist and behave in complete isolation from their urban context.
What needs to be done?
- Preparedness at Building and City Scale through policy: Earthquake preparedness, therefore, needs to act at the scale of building details as well as that of cities. Moreover, we must think about it in the realm of policy and not just legal enforcement.
- Need for Comprehensive Policy: At the scale of building details, we need to create a system of retrofitting existing structures and enforcing seismic codes with more efficiency. While there has been political talk and piecemeal efforts towards retrofitting, we still lack a comprehensive policy.
A policy should include two measures
- Retrofitting Buildings to Seismic Codes:
- To create a system of tax-based or development rights-based incentives for retrofitting one’s building up to seismic codes.
- Such a system of incentives will enable the growth of an industry around retrofitting and will generate a body of well-trained professionals and competent organisations.
- Improving Seismic Code Enforcement:
- By ensuring better enforcement of seismic codes through a similar model. A step forward in this direction was the National Retrofitting Programme launched in 2014.
- Under the programme, the Reserve Bank of India directed banks to deny loans for any building activity that does not meet the standards of earthquake-resistant design.
Case study: Japan
- Japan has invested heavily in technological measures to mitigate the damage from the frequent earthquakes that it experiences.
- Skyscrapers are built with counterweights and other high-tech provisions to minimise the impact of tremors.
- Small houses are built on flexible foundations and public infrastructure is integrated with automated triggers that cut power, gas, and water lines during earthquakes.
- All of this has been a result of cultivating an industry around earthquake mitigation and fostering expertise.
Criteria for an urban-level policy to generate earthquake vulnerability maps
- The percentage of vulnerable structures in the area;
- The availability of evacuation routes and distances from the nearest open ground;
- Density of the urban fabric;
- Location of nearest relief services and the efficiency with which these services can reach affected sites.
- For example: Flood zone mapping is a good example of such an exercise that has proven to be successful in terms of timely evacuation and efficient implementation.
Conclusion
- Governments and policymakers ought to know better than act in a piecemeal manner. Programmes like the ongoing Urban 20 meetings are an excellent opportunity for international knowledge exchange on earthquake preparedness. The Delhi High Court’s directions must act as a reminder for the inclusion of an earthquake preparedness policy in urban renewal programmes such as the Smart Cities Mission. A policy on earthquake preparedness requires a visionary, radical and transformative approach.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Read the attached story
Mains level: Forest cover accounting discrepancy
Central idea: From 19.53% in the early 1980s, today India’s total green cover stands at 24.62% ‘on-paper’.
Defining Forest and Tree Cover
- The Forest Survey of India (FSI) publishes its biennial State of Forest reports in 1987.
- A/c to FSI, India counts all plots of 1 hectare or above, with at least 10% tree canopy density, irrespective of land use or ownership, within forest cover.
- This disregards the United Nation’s benchmark that does not include areas predominantly under agricultural and urban land use in forests.
How are forests categorized?
The Forest Survey of India has listed four categories of forests. They are:
- Very Dense Forest (with tree canopy density of 70 per cent or above) (added since 2003)
- Moderately Dense Forest (tree canopy density of 40 per cent or above but less than 70 per cent)
- Open Forest (tree canopy density of 10 per cent or above but less than 40 per cent)
- Scrub (tree canopy density less than 10 per cent)
New category: NOT a forest (isolated or small patches of trees — less than 1 hectare)
Satellite imagery used for precision
- Until the mid-1980s (SFR 1987), the forest cover was estimated through satellite images at a 1:1 million scale.
- The resolution then improved to 1:250,000, reducing the minimum mappable unit size from 400 to 25 hectares.
- Since 19.53% in the early 1980s, India’s forest cover has increased to 21.71% in 2021.
- By 2001, the scale improved to 1:50,000, bringing down the unit size to 1 hectare, and interpretation went fully digital.
Accounting losses in forest cover
- Satellite imagery shows decline: The National Remote Sensing Agency (NRSA) estimated declines in India’s forest cover using satellite imagery.
- Official account on deforestation: While reliable data on encroachment is unavailable, government records show that 42,380 sq. km — nearly the size of Haryana— of forest land was diverted for non-forest use between 1951 and 1980.
- Reconciled data: The NRSA and the newly established FSI “reconciled” India’s forest cover at 19.53% in 1987. The FSI did not contest the NRSA finding that the dense forest cover had fallen from 14.12% in the mid-1970s to 10.96% in 1981, and reconciled it to 10.88% in 1987.
What about Total Recorded Forests?
Ans. Lost some areas due to encroachment, diversion, forest fire etc.
- In India, land recorded as forest in revenue records or proclaimed as forest under a forest law is described as Recorded Forest Area.
- These areas were recorded as forests at some point due to the presence of forests on the land.
- Divided into Reserved, Protected and Unclassed forests, Recorded Forest Areas account for 23.58% of India.
One-third forest lost!
- Almost one-third of India’s old natural forests — over 2.44 lakh sq. km (larger than Uttar Pradesh) or 7.43% of India are lost.
- Even after extensive plantation by the forest department since the 1990s, dense forests within Recorded Forest Areas added up to cover only 9.96% of India in 2021.
- That is a one-tenth slide since the FSI recorded 10.88% dense forest in 1987.
Then why is there a net increase in India’s forest cover?
- Plantations disguise as forest: The loss remains invisible due to the inclusion of commercial plantations, orchards, village homesteads, urban housings etc. as dense forests outside Recorded Forest Areas. Natural forests do not grow so fast.
- Plantation data unavailable: The FSI provides no specific information on the share of plantations in the remaining dense forests inside Recorded Forest Areas.
Why are plantations not an alternative to forests?
Plantations can grow a lot more and faster than old natural forests. This also means that plantations can achieve additional carbon targets faster. However they are cannot be accounted as forests because-
- Lack of biodiversity: Natural forests have evolved naturally to be diverse and, therefore, support a lot more biodiversity. Simply put, it has many different plants to sustain numerous species.
- Non-sustainable: Plantation forests have trees of the same age, are more susceptible to fire, pests and epidemics, and often act as a barrier to natural forest regeneration.
- Low carbon capacity: Natural forests are old and therefore stock a lot more carbon in their body and in the soil.
How accurate are these estimations?
- The FSI compares some interpreted data with the corresponding reference data collected from the ground under the National Forest Inventory (NFI) programme.
- In 2021, it claimed to have established an overall accuracy of 95.79% in identifying forests from non-forests.
- However, given the limited resources, the exercise was limited to less than 6,000 sample points.
What led to such decline in forest cover?
- Agricultural expansion
- Infrastructure development
- Mining and industrial activities
- Illegal logging (for timber)
- Climate change and natural disasters
Way forward
- Aggressive conservation policies and programs: The government needs to strengthen forest conservation policies and programs to promote the sustainable use and management of forests and trees.
- Community participation and empowerment: Engaging local communities in forest conservation and management can promote sustainable practices and enhance their livelihoods.
- Sustainable forest management practices: Promoting sustainable forest management practices like agroforestry, silvopasture, and mixed-use landscapes can enhance the productivity and resilience of forests.
- Use of technology for monitoring and enforcement: Leveraging technology like remote sensing, geographic information systems (GIS), and blockchain can improve the monitoring and enforcement of forest conservation policies and programs.
- Involving individuals and communities: They play a crucial role in protecting forests and trees by adopting sustainable practices, supporting forest conservation initiatives, and raising awareness about the importance of forests for the environment and people.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Political Whip
Mains level: Read the attached story
Central idea: The article aims to demystify the concept of whip and provide clarity on its role and importance in the functioning of state assemblies and parliament in India.
Who is a Whip?
- A whip is an official of a political party whose task is to ensure party discipline in a legislature.
- This means ensuring that members of the party vote according to the party platform, rather than according to their own individual ideology or the will of their donors or constituents.
- Whips are the party’s “enforcers”.
- They try to ensure that their fellow political party legislators attend voting sessions and vote according to their party’s official policy.
- Members who vote against party policy may “lose the whip”, effectively expelling them from the party.
Whips in India
- In India, the concept of the whip was inherited from colonial British rule.
- Every major political party appoints a whip who is responsible for the party’s discipline and behaviors on the floor of the house.
- Usually, they direct the party members to stick to the party’s stand on certain issues and directs them to vote as per the direction of senior party members.
What happens if a whip is disobeyed?
- A legislator may face disqualification proceedings if she/he disobeys the whip of the party unless the number of lawmakers defying the whip is 2/3rds of the party’s strength in the house.
- Disqualification is decided by the Speaker/Chairman of the house.
Limitations of whip
- There are some cases such as Presidential elections where whips cannot direct a Member of Parliament (MP) or Member of the Legislative Assembly (MLA) to vote in a particular fashion.
Types of whips
There are three types of whips or instructions issued by the party
- One-line whip: One-line whip is issued to inform members of a party about a vote. It allows a member to abstain in case they decide not to follow the party line.
- Two-line whip: Two-line whip is issued to direct the members to be present in the House at the time of voting.
- Three-line whip: Three-line whip is issued to members directing them to vote as per the party line.
Need for Whips
- Collective decision-making: The need for a whip arises from the fact that political parties operate on the principle of collective decision-making.
- Fulfill election promises: The whip ensures that the party’s agenda is advanced, and its promises to the electorate are fulfilled, which is essential for the functioning of a healthy democracy.
- Maintain policy cohesiveness: This requires the party to work together as a cohesive unit and ensure that its members vote in a coordinated manner on important legislative matters.
- Address differing opinions: There may be disagreements and differing opinions on certain matters, and this can lead to disunity and chaos within the party.
- Ensure party discipline: To prevent such situations, political parties appoint whips who are responsible for ensuring party discipline and ensuring that all members vote in accordance with the party’s position.
Conclusion
- The whip’s role is therefore crucial in maintaining party discipline and facilitating the smooth functioning of legislative business.
- Without a whip, it would be difficult for parties to ensure that their members vote in a coordinated manner, and this could lead to legislative gridlock and inefficiency.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fugitive Economic Offenders (FEOs)
Mains level: Extradiction of FEOs
Central idea: India has called upon G20 countries to adopt multilateral action for faster extradition of fugitive economic offenders (FEOs) and recovery of assets both on the domestic front as well as from abroad.
Who are Fugitive Economic Offenders (FEOs)?
- FEOs are individuals who have fled their home country to avoid facing prosecution for financial crimes such as money laundering, fraud, and embezzlement.
- These individuals typically engage in illegal activities that involve large sums of money and often cause significant damage to the economy of the country they have fled.
FEOs and India
- India has put in place specialized legislation in this regard, in the form of the Fugitive Economic Offenders Act, 2018.
- It defines the term- as an individual against whom a warrant of arrest in relation to a scheduled offense has been issued by any court in India and who has left the country so as to avoid criminal prosecution; or the FEO abroad, refuses to return to face criminal prosecution”.
Why do offenders go fugitive?
- Finding safe heavens: FEOs seek refuge in countries that do not have an extradition treaty with their home country or that have weak extradition laws.
- Evading justice: FEOs often exploit legal loopholes and the differences in laws and regulations across countries to evade justice.
- Asset offshoring: They may move their assets to offshore accounts or invest in assets such as real estate and art that are difficult to seize.
How FEOs impact the economy?
FEOs can have a significant impact on the economy of the country they have fled from.
- Loan defaults: They may default on loans, engage in fraudulent activities, and siphon off large amounts of money from banks and financial institutions.
- NPA crisis: This can lead to a rise in non-performing assets (NPAs), a slowdown in economic growth, and a loss of investor confidence.
International mechanisms for FEOs
Some of the key international mechanisms for FEOs are:
- Extradition treaties: Many countries have extradition treaties in place with other countries that enable them to request the extradition of individuals who have fled to other countries to avoid prosecution.
- Mutual Legal Assistance Treaties (MLATs): MLATs are agreements between countries that facilitate the exchange of information and evidence in criminal investigations and proceedings.
- International Conventions and Agreements: There are several international conventions and agreements that address financial crimes and provide a framework for international cooperation. Ex. UN Convention against Corruption, FATF etc.
- INTERPOL: Interpol facilitates cross-border police cooperation and coordination. It maintains a database of wanted individuals, including FEOs, and works with member countries to locate and apprehend them.
- Asset recovery: Such mechanisms are designed to enable countries to recover assets by means of seizure and repatriation of assets, as well as the freezing of assets to prevent FEOs from accessing them.
Way forward
- Strengthening domestic laws: India can strengthen its domestic laws and regulations to make it easier to prosecute FEOs and recover their assets.
- Developing extradition treaties: India can work to develop and strengthen extradition treaties with other countries to ensure that FEOs are not able to evade justice by fleeing to other countries.
- Enhancing international cooperation: India can enhance its cooperation with other countries and international organizations to facilitate the sharing of information and intelligence about FEOs.
- Seizing and repatriating assets: India can work to seize and repatriate assets that have been acquired through illegal means by FEOs.
- Improving transparency and accountability: India can improve transparency and accountability in its financial system to prevent FEOs from exploiting loopholes and engaging in illegal activities.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Foreign universities in India
Central idea:
GIFT City, Gandhinagar
- GIFT city is India’s first operational smart city and international financial services centre (much like a modern IT park).
- The idea for GIFT was conceived during the Vibrant Gujarat Global Investor Summit 2007 and the initial planning was done by East China Architectural Design & Research Institute (ECADI).
- Approximately 225 units/companies are operational with more than 12000 professionals employed in the City.
- The entire city is based on the concept of FTTX (Fibre to the home / office).The fiber optic is laid in fault tolerant ring architecture so as to ensure maximum uptime of services.
- Every building in GIFT City is an intelligent building. There is piped supply of cooking gas. India’s first city-level DCS (district cooling system) is also operational at GIFT City.
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Procedure for Universities coming to India
- The process for getting approval for setting up a campus in India will be strictly online in the beginning. Interested institutions have to apply at the UGC portal with a non-refundable fee, and then submit some documents.
- After the applications are received, a committee formed by the Commission will examine these applications on these factors:
- Credibility of the institution
- Programmes to be offered by the institution
- Their potential to strengthen academic opportunities in India
- Proposed infrastructure
UGC (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations 2023: Key questions answered
- UGC approval compulsory: All foreign universities that wish to set up their campus in India will be allowed to do so only after getting approval from the UGC.
- Reputed institutions: To set up a campus in Indian foreign universities will either have to be in the top 500 to apply or will have to be “highly reputed” in their respective countries (if the varsity does not participate in global rankings). If their ranking is between 500 and 100, but the subject-wise ranking is higher than overall, then in such cases, the institutions will be permitted to set up their campuses only for those ranked subjects.
- Quality assurance: Additionally, the UGC will reserve the right to inspect these Indian campuses of foreign HEIs at any time, and they will not be outside the purview of anti-ragging and other criminal laws.
- Offline classes only: All the foreign universities that open their branches in India will be allowed to conduct offline classes only, i.e. foreign universities can offer only full-time programmes in physical mode.
- Freedom to choose admission process, fee, and faculty: All foreign varsities will have the freedom to come up with their own admission process. However, the universities will have to ensure “quality of education imparted at their Indian campuses is on par with their main campus.”
- Admissions to all: Foreign higher educational institutes will have the freedom to enroll Indian as well as international students on their Indian campuses.
- International funds transfer: To ensure that there is no chaos in funds transfer, all matters related to funding will be as per the Foreign Exchange Management Act 1999.
- Safeguarding of students’ interest: FHEI shall not discontinue any course or programme or close the campus without the commission’s prior approval. In the case of a course or programme disruption or discontinuation, the parent entity shall be responsible for providing an alternative to the affected students.
- Equivalence with degrees awarded by Indian HEIs: The qualifications awarded to the students in the Indian campus shall be recognised and treated as equivalent to the corresponding qualifications awarded by the FEHI in the main campus located in the country of origin.
- Securing India’s national interest: FEHIs shall not offer any such programme or course which jeopardises the national interest of India or the standards of higher education in India. The operation of FEHIs shall not be contrary to the sovereignty and integrity of India, the security of the state, friendly relations with foreign states, public order, decency, or morality.
Why such move?
- Increase in domestic enrolment: India has more than 1000 universities and 42,000 colleges. Despite having one of the largest higher education systems in the world, India’s Gross Enrolment Ratio (GER) in higher education is just 27.1%, among the worlds’ lowest.
- Education quality improvement: The lack of quality in Indian education is reflected in the QS World University Rankings 2022. IIT Bombay was the top-ranking Indian institute in the list with a ranking of 177. Only eight Indian universities made it to the top 400.
- Paving the way: London Business School, King’s College in London, the University of Cambridge, and New York University have started preliminary discussion with the GIFT City authorities and the regulator to establish facilities at the GIFT International Financial Services Centre.
Benefits of the move
- Human capital generation: This move would complement efforts to provide high quality human capital to India’s financial services industry.
- Decreased overseas spending: Indian students’ overseas spending is set to grow from current annual $28 billion to $80 billion annually by 2024.
- Reduce FOREX spending: Apart from fostering a competition in quality, International branch campuses can also help in reducing the foreign exchange outflow.
- Prevents brain-drain: Education attracts opportunities. Atmanirbhar Bharat push will retain the domestic talent. More than eight lakh Indians gave up their citizenship in the last seven years.
- Increase India’s soft power: Opening the door for foreign universities can improve India’s soft power as it will provide further impetus to the government’s Study in India programme that seeks to attract foreign students.
Challenges
- Regulatory challenges: The following factors may deter foreign higher educational institutions from investing in India-
- Multi-layer regulatory framework governing different aspects of higher education
- Lack of a single regulatory body overlooking the collaborations/ investments and
- Multiple approvals are required to operate in India
- Implementation issues: While NEP has taken the right steps to boost the education sector and pave the way for a globally-compatible education system, its implementation has been slow and requires clarity.
- Higher possibility of Brain Drain: A policy challenge that stands before the GoI is to facilitate such tie-ups in a way that the Indian talent chooses to and is incentivised to remain in India and the Indian educational infrastructure is developed to match global standards.
Conclusion
- The intent of the GoI, with respect to international universities setting up campuses in India, is clear from the provisions in the NEP.
- However, much clarity is awaited for the proper implementation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: G20
Mains level: India's Multilateralism amidst the global power struggle
Central Idea
- The inability of the G20 finance ministers to agree on a joint statement last week points to an important reality about multilateralism. When great powers are at peace with each other, multilateralism has reasonable chances of success; but when they are at each other’s throats, the room for global cooperation shrinks.
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What is multilateralism?
- Multilateralism is an approach in which multiple countries or parties come together to address and solve common problems, through negotiations and cooperation, while respecting each other’s sovereignty and interests.
- In international relations, multilateralism can take different forms, such as multilateral agreements, treaties, and organizations.
- The United Nations (UN) is an example of a multilateral organization, which brings together almost all countries in the world to promote peace, development, and cooperation.
Multilateralism and Major Powers: From Cooperation to Conflict
- The Cold War and Multilateralism:
- Lack of cooperation during the Cold War, except in a few areas such as nuclear arms control
- The formation of the UN after the Second World War with the expectation of great power cooperation.
- Allies turning into adversaries and sharp division of the world into competing economic and military blocs.
- Post-Cold War Multilateralism:
- Collapse of the Soviet Union in 1991 led to an expansive phase of multilateralism
- Great power cooperation at the UN and creation of the WTO
- The financial crisis of 2008 and the rallying of the top 20 economies to stabilise the global economy.
- Current State of Multilateralism
- World of shared interests among top nations no longer exists
- Simmering political conflict between Russia and the West, possibility of military conflict between the US and China.
- Consensus on key issues eludes the G20 today
- Rising geopolitical conflict mirrored in the economic domain
- Efforts by the US and China to reduce their massive economic exposure to each other
- Economic conflict enveloping emerging technologies, especially in the digital domain.
- Multilateralism and G20: As the current chair of the G20 in 2023, India has to steer the group amidst the renewed rivalry between the major powers. Reducing the impact of the political conflicts on the G20 would be a diplomatic achievement for India.
- Delhi’s Troubled Relationship with Beijing: India is part of the great power rivalry with China. The conflict is not just about military assertiveness but also deep differences on multilateral issues
- Need to Balance China: India cannot stand apart from the great power conflict while representing the Global South at the G20. India has to balance its cooperation and contestation with China in various multilateral forums.
- India’s Participation in Multiple Multilateral Institutions: India’s approach to multilateralism has evolved from a focus on the UN and NAM to participation in multiple institutions including the Quad and the G7. It is also working to strengthen its coalition with the Global South.
Conclusion
- The diversity of India’s multilateralism reflects the structural imperatives of global politics. Delhi must cooperate with adversaries for regional and global problem-solving while wrestling with rivals and collaborating with like-minded countries. Cooperation and contestation balance depend on the issue and context.
Mains Question
Q. What do you understand by Multilateralism? India is continuously expanding its multilateral approach. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Anmol Jeevan Mission, Tanka
Mains level: Not Much
A recent initiative called the ‘Anmol Jeevan Abhiyan’ (Precious Life Campaign) in Barmer, Rajasthan has motivated village panchayats and homeowners to add hand pumps and locked covers to tankas for improved structure.
What are Tankas?
- The tankas with a huge water storage capacity are traditionally built adjacent to the residential units in western Rajasthan.
- It is used for collecting rainwater and using it throughout the year for drinking and other household needs.
- They were constructed in households under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
|
Anmol Jeevan Abhiyan
- The ‘Anmol Jeevan Abhiyan’ (Precious Life Campaign) has encouraged village panchayats and owners of houses to make the structural addition of hand pumps and locked covers on tankas.
- The light-weight hand pumps made of fibre serve the dual purpose of preventing the accidents and suicides as well as drawing of water from the tank.
- The campaign has been started jointly by the district administration, United Nations Children’s Fund (UNICEF) and Action Aid.
- Among the 171 suicide cases reported last year, as many as 64 were those of women and a majority was those who had jumped into the water tanks.
Benefits offered
- Though the campaign has made an impact during the last three to four months, it cannot be measured in quantitative terms at present because of its continuity, even as the reports of suicides have gradually reduced.
- The permanent closure of tankas with the metal cover having lock also ensured that no cattleheads or other animals fall into them tank.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: QR coin vending
Mains level: Not Much
The RBI in collaboration with banks is set to launch a pilot project to assess the functioning of a QR-code-based coin vending machine.
Coin Vending Machines
- The vending machines would dispense coins with the requisite amount being debited from the customer’s account using United Payments Interface (UPI) instead of physical tendering of banknotes.
- Customers would be endowed the option of withdrawing coins in required quantities and denominations.
- The central idea here is to ease the accessibility to coins.
- With particular focus on ease and accessibility, the machines are intended to be installed at public places such as railway stations, shopping malls and marketplaces.
Why such a move?
- Prevent hoarding of coins: The situation with respect to coins is peculiar with the supply being very high. It is taking up a lot of storage space and is not getting properly distributed despite high demands.
- Eliminate the physical tendering of banknotes: It was observed that the currency being fed into the machines (for coin exchange) were often found to be fake and could not be checked right at that point of time.
Do you know?
For perspective, coins in India are issued in denominations of 50 paise, one rupee, two rupees, five rupees, ten rupees and twenty rupees (not considering special edition coins of various denomination).
Coins of up to 50 paise are called ‘small coins’ while those of one rupee and above are called ‘rupee coins’. |
How coins are significant in our economy?
- As per the latest RBI bulletin, the total value of circulation of rupee coins stood at ₹28,857 crore as of December 30 last year. The figure is an increase of 7.2% from the year-ago period.
- Circulation of small coins remained unchanged at ₹743 crore.
- The figures above could be compared to the volume of digital payments until December 2022 which stood at approximately ₹9,557.4 crore, as per the Digidhan Dashboard.
- The number is inclusive of mobile banking, internet banking, IMPS, BHIM-UPI and NEFT, among others.
- Hence the reliance on UPI for dispensing coins is particularly noteworthy.
Is it going against the digital push?
- RBI is in the midst of a pilot for the Central Bank Digital Currency (CBDC).
- But this proposal should not be viewed as a “zero-sum game of digital versus cash.”
- The two can easily supplement each other by re-circulating existing coins in the economy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Proton Beam Therapy
Mains level: Not Much
There is currently a demand-supply gap of proton beam therapy machines in India, leaving many cancer patients in a difficult situation.
What is Proton Beam Therapy?
- Proton beam therapy is a type of radiation therapy — a treatment that uses high-energy beams to treat tumors.
- Radiation therapy using X-rays has long been used to treat cancers and noncancerous (benign) tumors.
- It uses protons rather than x-rays to treat cancer. At high energy, protons can destroy cancer cells.
- It can also be combined with x-ray radiation therapy, surgery, chemotherapy, and/or immunotherapy.
- Like x-ray radiation, proton therapy is a type of external-beam radiation therapy.
How it works?
- Fundamentally, all tissue cells are made up of molecules with atoms as their building blocks.
- In the center of every atom is the nucleus. Orbiting the nucleus of the atom are negatively charged electrons.
- When energized protons pass near orbiting electrons, the positive charge of the protons attracts the negatively charged electrons, pulling them out of their orbits. This is called ionization.
- It changes the characteristics of the atom and consequentially the character of the molecule within which the atom resides.
- Because of ionization, the radiation damages molecules within the cells, especially the DNA.
- Damaging the DNA destroys specific cell functions, particularly the ability to divide or proliferate.
- While both normal and cancerous cells go through this repair process, a cancer cell’s ability to repair molecular injury is frequently inferior.
- As a result, cancer cells sustain more permanent damage and subsequent cell death than occurs in the normal cell population.
Why in news?
- There is currently a significant demand-supply gap of proton beam therapy machines in India, with only a few machines available in the country.
- This has resulted in long wait times for patients who need the treatment, and many patients are forced to travel abroad to access the treatment, which can be prohibitively expensive.
Various challenges
- Huge demand: The demand for PBT machines is also increasing, as more and more patients are being diagnosed with cancer and are seeking the latest and most effective treatments available.
- High cost: One of the major challenges in setting up PBT machines is the high cost involved, as the machines are complex and require a significant investment.
- Shortage of personnel: In addition, there is a shortage of trained personnel who can operate and maintain the machines, which further limits their availability.
Way Forward
- The government and private sector need to invest more in setting up and maintaining the machines. This could include-
- Offering tax incentives and subsidies to private healthcare providers who invest in PBT machines
- Providing training and education to personnel who can operate and maintain the machines
- Setting up more public hospitals that offer proton beam therapy, which would help to make the treatment more accessible and affordable to patients who need it
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Chandrayaan
Mains level: Chandrayaan-3 Mission
The Indian Space Research Organisation (ISRO) has successfully conducted a crucial test for its upcoming Chandrayaan-3 mission.
What was the test?
- The test involved the high-thrust cryogenic engine, which will be used to power the rocket that carries the Chandrayaan-3 spacecraft.
- The engine was tested for its endurance and performance under various conditions.
About Chandrayaan-3 Mission
- The Chandrayaan-3 mission is the third lunar exploration mission by the Indian Space Research Organisation.
- The mission follows the successful Chandrayaan-1 and Chandrayaan-2 missions, which were launched in 2008 and 2019 respectively.
- The Chandrayaan-3 mission is designed to further explore the Moon’s South Pole region and conduct various scientific experiments, including studying the lunar surface, mineralogy, and the presence of water.
Significance of the recent test
- With the successful test of the high-thrust cryogenic engine, ISRO is now one step closer to launching the Chandrayaan-3 mission.
- The mission is expected to be a significant step forward in India’s space exploration efforts and will further our understanding of the Moon and its potential for future exploration and exploitation.
Chandrayaan-2: A quick recap
- Chandrayaan-2 consisted of an Orbiter, Lander and Rover, all equipped with scientific instruments to study the moon.
- The Orbiter would watch the moon from a 100-km orbit, while the Lander and Rover modules were to be separated to make a soft landing on the moon’s surface.
- ISRO had named the Lander module as Vikram, after Vikram Sarabhai, the pioneer of India’s space programme, and the Rover module as Pragyaan, which crash-landed.
Inception of Chandrayaan 3
- The subsequent failure of the Vikram lander led to the pursuit of another mission to demonstrate the landing capabilities needed for the Lunar Polar Exploration Mission proposed in partnership with Japan for 2024.
Its design
- The lander for Chandrayaan-3 will have only four throttle-able engines.
- Unlike Vikram on Chandrayaan-2 which had five 800N engines with a fifth one being centrally mounted with a fixed thrust.
- Additionally, the Chandrayaan-3 lander will be equipped with a Laser Doppler Velocimeter (LDV).
Back2Basics: Chandrayaan-1 Mission
- The Chandrayaan-1 mission was launched in October 2008 was ISRO’s first exploratory mission to the moon, in fact to any heavenly body in space.
- The mission was designed to just orbit around the moon and make observations with the help of the instruments onboard.
- The closest that the Chandrayaan-1 spacecraft came to the moon was in an orbit 100 km from its surface.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Windsor Framework
Mains level: Not Much
The ‘Windsor Framework’ will replace the Northern Ireland Protocol, which had proved to be among the thorniest of Brexit fall-outs, creating problems both economic and political.
You must know!
England is a country in its own right and forms part of Great Britain, along with Scotland and Wales. Great Britain is a geographical term that refers to the island that contains England, Scotland, and Wales.
On the other hand, the United Kingdom (UK) is a sovereign state that includes England, Scotland, Wales, and Northern Ireland.
Hence, England is a part of Great Britain, and Great Britain is a part of the UK. |
What is the Northern Ireland Protocol?
- After the UK left the European Union, Northern Ireland remained its only constituent that shared a land border with an EU-member, the Republic of Ireland.
- Since the EU and the UK have different product standards, border checks would be necessary before goods could move from Northern Ireland to Ireland.
- However, the two Irelands have had a long history of conflict, with a hard-fought peace secured only in 1998 under the Belfast Agreement, also called the Good Friday agreement.
- Fiddling with this border was thus considered too dangerous, and it was decided the checks would be conducted between Great Britain and Northern Ireland.
- This was called the Northern Ireland Protocol.
Why was it contentious?
- Under the protocol, Northern Ireland remained in the EU single market, and trade-and-customs inspections of goods coming from Great Britain took place at its ports along the Irish Sea.
- The checks made trade between Great Britain and Northern Ireland cumbersome, with food products, especially, losing out on shelf life while they waited for clearance.
- Some taxation and spending policies of the UK government could not be implemented in Northern Ireland because of EU rules.
- The sale of medicines, too, was caught between different British and EU rules.
What does the Windsor Framework proposes?
- The Windsor Framework Deal proposes two crucial aspects. The first aspect is the introduction of a green lane and red lane system for goods.
- The green lane system will be for goods that will stay in Northern Ireland.
- The red lane system will be for goods that will go to the EU.
- The second aspect is the ‘Stormont Brake’.
- It allows Northern Ireland lawmakers and London to veto any EU regulation.
- The veto is applicable if they believe that the regulation affects the region adversely.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Exercise Cobra Warrior
Mains level: Not Much
IAF contingent comprising to participate in Exercise Cobra Warrior at the Waddington Air Force Base of the Royal Air Force in the United Kingdom.
Exercise Cobra Warrior
- Cobra Warrior is a multinational military exercise that takes place annually in the United Kingdom.
- It is designed to improve the readiness and interoperability of the Royal Air Force and allied air forces for joint combat operations.
- The exercise brings together military units from different countries, including NATO allies and partner nations, to practice and enhance their air combat capabilities.
- During the exercise, the participating air forces conduct a series of realistic training scenarios that simulate air-to-air combat, air-to-ground attacks, and other mission types.
- The aim is to provide pilots and ground crews with realistic training experiences to help prepare them for real-world combat situations.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Tobacco consumption, Health and socio economic impact
Central Idea
- The share of smokers is declining in India, but smokeless tobacco consumption continues unabated. Smokeless tobacco use is widespread and is a significant public health challenge. The use of smokeless tobacco in India is deeply ingrained in cultural and traditional practices, making it difficult to address through public health interventions.
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- High Consumption in north eastern states: In the north-eastern States of India, consumption of tobacco among men in both smokable and chewable forms was higher than the rest of India in 2019-21.
- Consumption in southern states is relatively low: In the southern States, the share was relatively low with regard to both forms of tobacco consumption. However, among those who smoked, the share of those who consumed more than five sticks a day was much higher in many southern States. So, while smokers were fewer in the south, those who smoked did so heavily.
- Smokable forms: If only the smokable forms were considered, the share was higher in the northern States of Himachal Pradesh, Uttarakhand, Haryana, J&K U.T. and the eastern State of West Bengal.
- Chewable forms: If only the chewable forms were considered, the share was higher in the east Jharkhand, Bihar and Odisha and in Uttar Pradesh, Madhya Pradesh and Gujarat.
- Share of cigarette/bidi smokers is coming down: Overall, in India, the share of cigarette/bidi smokers is coming down. Compared to 2005-06, the share of smokers came down by over 10% points in 2019-21.
Why is this trend?
- Increase in prices of smokable forms: According to health economists the reduction in cigarette smoking may be attributed to the increase in the prices of the commodity over time.
- Price of chewable form have not increased: On the other hand, the prices of bidis and other chewable forms have not increased much, and so consumption too has not reduced much.
Why price and taxation of tobacco matters?
- Effective way to reduce consumption: Research from many countries around the world including India shows that a price increase induces people to quit or reduce tobacco use as well as discourages non-users from getting into the habit of tobacco use.
- For example: a study conducted in India found that a 10% increase in the price of tobacco products led to a 6.4% reduction in tobacco consumption among adults.
- Higher prices can also discourage young people from taking up smoking: According to the World Health Organization, increasing tobacco prices by 10% can reduce tobacco use among young people by about 4%. This is particularly important as most tobacco users start smoking during adolescence.
Tobacco consumption: Negative health effects
- Cancer: Tobacco use is the leading cause of preventable cancer. It can cause cancer of the lungs, mouth, throat, larynx, pancreas, bladder, kidney, and cervix.
- Respiratory diseases: It may cause chronic obstructive pulmonary disease (COPD), which includes chronic bronchitis and emphysema. It can also worsen asthma symptoms.
- Cardiovascular diseases: Consumption increases the risk of heart attack, stroke, and other cardiovascular diseases. It damages blood vessels and increases the risk of blood clots.
- Reproductive health: Tobacco use can lead to infertility, premature birth, and low birth weight in babies.
Tobacco consumption: Social-Economic Impact
- On an individual level:
- Tobacco consumption can lead to decreased productivity and increased healthcare costs.
- Smoking-related illnesses can result in absenteeism from work, decreased work performance, and increased medical expenses.
- In addition, tobacco consumption can lead to decreased life expectancy, which reduces the overall productive years of an individual.
- On a societal level:
- Tobacco consumption can lead to decreased economic development due to the increased burden of healthcare costs and decreased productivity.
- According to a study conducted by the World Health Organization (WHO), tobacco-related illnesses cost India about $22.4 billion in healthcare costs and lost productivity annually
Conclusion
- Tobacco consumption in India has significant socioeconomic and health impacts, particularly on the poor and marginalized sections of the population. Worryingly, after GST implementation, cigarette prices have not increased much. Increasing the price of tobacco products through taxation is a key strategy for reducing tobacco consumption and its associated health and economic costs.
Mains Question
Q. Tobacco consumption in India has significant socioeconomic and health impacts? Discuss. Do you think increase in price of tobacco commodities reduces its consumption?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Current Account Deficit
Mains level: CAD and deficit financing
Central Idea
- As per the RBI’s quarterly statistics, the current account deficit (CAD) widened to 4.4 per cent of GDP in the second quarter of 2022-23, down from 2.2 per cent in the preceding quarter. This marks a reversal from an unusual surplus of 0.9 per cent of GDP in 2020-21. In the third quarter of this financial year, while the merchandise trade deficit has widened, the CAD may witness a fall.
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What is Current Account Deficit (CAD)?
- Current Account Deficit (CAD) = Trade Deficit + Net Income + Net Transfers
- A current account is a key component of balance of payments, which is the account of transactions or exchanges made between entities in a country and the rest of the world.
- This includes a nation’s net trade in products and services, its net earnings on cross border investments including interest and dividends, and its net transfer payments such as remittances and foreign aid.
- A CAD arises when the value of goods and services imported exceeds the value of exports, while the trade balance refers to the net balance of export and import of goods or merchandise trade.
Components of Current Account
- Trade Deficit
- Trade Deficit = Imports – Exports
- A Country is said to have a trade deficit when it imports more goods and services than it exports.
- Trade deficit is an economic measure of a negative balance of trade in which a country’s imports exceeds its exports.
- A trade deficit represents an outflow of domestic currency to foreign markets.
- Net Income
- Net Income = Income Earned by MNCs from their investments in India.
- When foreign investment income exceeds the savings of the country’s residents, then the country has net income deficit.
- Net income is measured by Payments made to foreigners in the form of dividends of domestic stocks, Interest payments on bonds and Wages paid to foreigners working in the country.
- Net Transfers
- In Net Transfers, foreign residents send back money to their home countries. It also includes government grants to foreigners. It also Includes Remittances, Gifts, Donation etc.
India’s CADs have both desirable and undesirable components
- Desirable:
- A desirable deficit is a natural reflection of rising investment, portfolio choices and the demographics of the country.
- If CADs can be financed by stable capital inflows, such as FDI inflows, they are desirable as they are less prone to capital flight.
- Stable capital flows are desirable as they allow debtor countries, such as India, to utilize and allocate them into sectors that may yield long-term productive gains and foster higher economic growth.
- Undesirable:
- Large and persistent CADs can be undesirable if they reflect bigger problems such as poor export competitiveness and are financed by unstable financing.
- If deficits are financed by volatile capital flows such as portfolio flows, there may be a cause of concern. Portfolio flows are capricious and more susceptible to reversals in case of any global financial shock.
- Dominance of external shocks: Research suggests that the country’s CAD rises when output falls rather than when demand rises, indicating the dominance of external shocks.
- For instance: If oil prices rise, and as oil is an input in the production process, it raises the cost of production and leads to a fall in economic growth. In this case, CADs rise with falling growth due to both the inelasticity of oil import demand as well as its major share in India’s total imports.
Remarks to be Noted
- Remittances and services exports have provided a counter-balance to rising merchandise trade deficits.
- India’s services exports grew at 23.5 per cent in 2021-22.
- While capital flows are pro-cyclical and react negatively to contractionary monetary policy by the Fed, remittances have exhibited remarkable stability.
Challenges and a Way ahead
- The composition of financing is crucial. While FDI inflows were enough to finance the deficit in 2021-22, these inflows have been weak in the current fiscal year.
- Over the medium term, policymakers need to arrest the negative spillovers from the slowdown in global trade on merchandise exports.
- Further rate hikes by the US Fed may lead to capital outflows leading to additional exchange rate market pressures. This could be challenging in the current situation as a weaker currency, coupled with a sticky import basket will lead to imported inflation.
- Policy measures thus must facilitate exports by focusing on structural reforms to improve trade competitiveness, alongside which the government must sign free trade agreements.
Conclusion
- India is currently facing the twin-deficit problem of high fiscal and CADs. While aggressive fiscal consolidation may be undesirable in the face of rising fears about a global slowdown, a comfortable external environment can be maintained by ensuring stable financing, along with using exchange rates as a shock absorber to weather the adverse global economic situation.
Mains Question
Q. Explain the concept of Current account deficit? India’s CAD have both desirable and undesirable components. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: e-waste
Mains level: e-waste, impact, recycling challenges and management
Central Idea
- The burgeoning problem of managing e-waste is a cross cutting and persisting challenge in an era of rapid urbanisation, digitalisation and population growth. In November 2022, the Ministry of Environment and Forests notified a new set of e-waste rules, which will come into force from April 1, 2023. These rules address some of the critical issues but are silent on others.
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What is e-Waste?
- e-waste refers to electronic waste, which includes any discarded electronic or electrical device, such as computers, mobile phones, televisions, and refrigerators.
- These devices contain hazardous substances such as lead, mercury, cadmium, and polyvinyl chloride (PVC) that can pose significant environmental and health risks if not disposed of properly.
- Extended Producer Responsibility (EPR): The first set of e-waste Rules was notified in 2011 and came into effect in 2012. An important component of the Rules (2011) was the introduction of EPR. Under EPR compliance, producers are responsible for the safe disposal of electronic and electric products once the consumer discards them.
- Authorization and product stewardship: E-waste rules 2016, which were amended in 2018, were comprehensive and included provisions to promote authorisation and product stewardship. Other categories of stakeholders such Producer Responsibility Organisations (PRO) were also introduced in these rules.
- A digitalized systems approach, introduced in the new rules (2022): Standardizing the e-waste value chain through a common digital portal may ensure transparency and is crucial to reduce the frequency of paper trading or false trail i.e., a practice of falsely revealing 100% collection on paper while collecting and/or weighing scrap to meet targets
e-waste recycling: Analysis
- Two important stages of efficient e-waste recycling:
- 1. Component recovery (adequate and efficient recoveries of rare earth metals in order to reduce dependence on virgin resources) and
- 2. Residual disposal (safe disposal of the leftover residual during e-waste recycling).
- Concern: The rules briefly touch upon the two aspects, but do not clearly state the requirement for ensuring the recovery tangent.
- The new notification does away with PRO and dismantlers: All the responsibility of recycling vests on authorised recyclers; they will have to collect a quantity of waste, recycle them and generate digital certificates through the portal.
- Concern: Fresh challenges might emerge as companies are no longer required to engage with PROs and dismantlers, who partially ensured double verification in terms of quantity and quality of recycling.
- Lack of recognition to informal sector: The new rules for e-waste management in India do not recognize the crucial role played by the informal sector, which handles 95% of e-waste in the country. This lack of recognition may be due to the sector’s “illegality
- Concern: This move could further push e-waste handling into the shadows and make it more difficult to monitor and regulate. This could lead to environmental pollution, health hazards for workers, and inefficient e-waste management.
Impact on Health
- Incineration and leaching: Open incineration and acid leeching often used by informal workers are directly impacting the environment and posing serious health risks, especially to child and maternal health, fertility, lungs, kidney and overall well-being.
- Occupational health hazards: In India, many of these unskilled workers who come from vulnerable and marginalised are oblivious to the fact that that what they know as ‘black plastics’ have far reached occupational health hazards especially when incinerated to extract copper and other precious metals for their market value.
- Exposures to children: This ‘tsunami of e-waste rolling out of the world’, as described in an international forum on chemical treaties, poses several health hazards for women in this sector as they are left exposed to residual toxics elements mostly in their own households and often the presence of children.
- Constant contact with organic pollutants: According to a recent WHO report, a staggering 18 million children, some as young as five, often work alongside their families at e-waste dumpsites every year in low- and middle-income countries. Heavy metals such as lead, as well as persistent organic pollutants (POPs), like dioxins, and flame retardants (PBDEs) released into the environment, have also added to air, soil, and water pollution
Way ahead
- In order to ensure maximum efficiency, the activities of the recyclers must be recorded in the system.
- The authorities should periodically trace the quantity of e-waste that went for recycling vis-à-vis the recovery towards the end.
- Recognising the potential of informal sector in e- waste handling.
- For instance, ‘Karo Sambhav’, a Delhi-based PRO, has integrated informal aggregators in its collection mechanism. Through this initiative, e-waste is entered in a safe and structured system and the informal sector also has an advantage in terms of financial and legal security.
- In order to ensure the efficient implementation of the law, stakeholders must have the right information and intent to safely dispose of e-waste.
- There is need of strengthening reverse logistics, building capacity of stakeholders, improving existing infrastructure, enhancing product designing, rationalising input control and adopting green procurement practices.
- Provide doorstep collection to consumers.
Conclusion
- e-waste recycling and management have become a major environmental challenge in the modern world, as the volume of e-waste generated continues to grow rapidly. Simultaneous efforts needed to increase awareness and improve infrastructure for effective e-waste management. Moreover, robust collection and recycling system and required to meet legislative requirements.
Mains Question
Q. What is e- waste? Discuss the set of e-waste rules in India and suggest what needs to be done for effective e- waste management?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Budget
Mains level: Government capex, debt, investments and social welfare
Central Idea
- The world is indeed looking up to the Indian economy as a bright star, as the finance minister noted in the Budget speech on February 1. In 2020, India accounted for 20.6% of the worldwide population of 15- to 29-year-olds. Which means that in the years ahead, one out of every five workers deployed globally could be an Indian. No doubt, the rest of the world foresees a fortune in India’s young population. But are our policymakers doing enough to realise the possibilities that are unfolding?
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The key proposals in this year’s Union budget are the following
- Increase in capital expenditures for infrastructure: There will be a considerable increase in capital expenditures, for the building of physical infrastructure, mainly in transport, energy and defence. The figures under this head are expected to be higher in 2023-24 compared to the corresponding level in 2022-23 (revised estimates).
- Modest tax revenue: The growth of the tax revenues is going to be modest, the government is nevertheless committed to reducing the fiscal deficit to 5.9% of GDP. That could have been achieved only by reducing the spending on some other sectors
- The axe has fallen on subsidies and social sector expenditures: Compared to its previous year, in 2023-24, the Union government’s expenditure on food subsidy will fall by ₹0.9 trillion (or 90,000 crore), on fertilizer subsidy by ₹0.5 trillion, and on the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) by ₹0.3 trillion.
- Marginal increase unlikely to make impact: The marginal increases in the allocations on health, education, agriculture and the Angwandi scheme are unlikely to make an impact, after taking into account the effect of inflation.
Public-private complementarities
- Capital spending indicates country’s productive capability: A jump in capital spending by the government, as proposed in the Budget, is a much-needed step to reinvigorate the Indian economy. Investment as a proportion of income or GDP indicates the rate at which a country’s productive capabilities are growing.
- High rates of investment; Fast rates of economic progress: In India, this proportion rose steadily during the mid-2000s and peaked at 42% in 2007, which was even better than China’s record at that point in time. High rates of investment translated into extremely fast rates of economic progress in the country, which lasted until the early 2010s.
- Crowd in Private investments: If the proposed investments by the government come through, and they indeed crowd in private investments as the finance minister has predicted, that can set the stage for a revival of the Indian economy.
Global financial crisis in 2007-08 was a turning point
- China responded with high domestic investment: China responded to the crisis by increasing domestic investment, a large part of which coming from its public sector.
- India restrained its expenditures: In India, the government restrained its expenditures, worrying about the rising fiscal deficits. As public expenditures nosedived, private investors lost confidence as well. Investment as a proportion of GDP was on a steady downward slide
Investing in people is an investment in the future
- Expenditure on social sector: Public expenditures on the social sectors constitute an investment for the future more so for a country with a predominantly young population.
- For instance: The income a destitute mother receives for work through MGNREGA may ensure that her children do not have to go to school with empty stomachs.
- Underinvestment in education: Underinvestment in education and health will undercut India’s chances in a global economy that is increasingly dominated by knowledge. Millions of young people are denied access to affordable education and decent jobs, leading to frustration.
- For instance: In 2022, only 2.6% of the nearly 1.9 million candidates who wrote the NEET managed to secure a seat for MBBS in a government college.
- Government expenditure to boost to supply and demand: Government expenditure on health and education can provide a boost to both the supply and the demand fronts in a knowledge-driven economy, more new jobs as teachers and doctors, especially for women, and a greater supply of younger professionals and skilled workers.
- Contrasting Capital Expenditures with Social Sector Spending: Unlike capital expenditures, which are generally considered productive, subsidies and social sector spending are often labeled as wasteful. It is commonly believed that cutting social sector spending will not harm economic growth; however, this perception is incorrect.
- The Negative Impact of Reducing Social Sector Spending: Cutting social sector spending not only exacerbates existing social inequalities but also dampens the prospects for long-term growth.
- For instance: In India, for example, only 9.8% of workers have access to regular jobs that provide some form of social security. Therefore, measures such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the free provision of food have been a lifeline for millions of poor Indians who have been affected by the COVID-19 pandemic and joblessness.
Unwarranted fears about fiscal deficit
- The Counterproductive Nature of Inflated Fears: Inflated fears about the fiscal deficit and government debt will only be counterproductive in a country possessing vast reserves of untapped human and other resources as India does.
- India’s government debt is held largely by domestic financial institutions does not pose threat: Only a small portion of India’s public debt is owed to external agencies (amounting to 4.2% of GDP in 2022), which does not pose a threat. India’s public debt is held largely by domestic financial institutions, including public sector banks, insurance companies. This is a debt the government owes to the people of this country, whose savings the financial institutions have mobilised.
- For example: Greece and the most recent example of Sri Lanka’s economic crisis was a result of external debt.
- A Virtuous Cycle of Debt: Higher levels of development and incomes will lead to the creation of fresh savings, which can help pay off the debts. Borrowing to feed and educate all of its young citizens will provide asset-poor and socially disadvantaged households the opportunity to pick up qualifications required to enter the new job market.
Conclusion
- For a generation of young Indians, this is, without a doubt, a ‘make or break moment’. without increased public spending on human capabilities, there is little hope for them to escape poverty, lack of skills, and discontent. However, if the government invests in food security, health, and education, India’s young people can thrive and become bright stars that illuminate the world.
Mains question
Q. Without increased public spending on human capabilities, there is little hope for young Indians to escape poverty and discontent. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ED
Mains level: Issues with working of ED
The Supreme Court has sharply reacted over tenure extensions granted to Enforcement Directorate Director by the government to subvert ongoing investigations against their leaders.
What is Enforcement Directorate (ED)?
- ED was formed in 1957 to look into cases of foreign exchange-related violations, a civil provision.
- It goes back to May 1, 1956, when an ‘Enforcement Unit’ was formed in the Department of Economic Affairs.
- Now, the ED falls under the finance ministry’s Department of Revenue.
- But in 2002, after the introduction of the PMLA, it started taking up cases of financial fraud and money laundering, which were of criminal nature.
- It was then tasked for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA).
- Today, it is a multi-dimensional organisation investigating economic offences under the:
- Prevention of Money Laundering Act (PMLA)
- Fugitive Economic Offenders Act
- Foreign Exchange Management Act
- Foreign Exchange Regulation Act (FERA)
Its establishment
- When proceeds of crime (property/money) are generated, the best way to save that money is by parking it somewhere, so one is not answerable to anyone in the country.
- Therefore, there was a need to control and prevent the laundering of money.
- The PMLA was brought in for this exact reason in 2002, but was enacted only in 2005.
- The objective was to prevent parking of the money outside India and to trace out the layering and the trail of money.
- So as per the Act, the ED got its power to investigate under Sections 48 (authorities under act) and 49 (appointment and powers of authorities and other officers).
At what stage does the ED step in when a crime is committed?
- Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above ₹1 crore, the investigating police officer forwards the details to the ED.
- Alternately, if the offence comes under the knowledge of the Central agency, they can then call for the First Information Report (FIR) or the chargesheet if it has been filed directly by police officials.
- This will be done to find out if any laundering has taken place.
What differentiates the probe between the local police and officers of the ED?
Case study:
- If a theft has been committed in a nationalised bank, the local police station will first investigate the crime.
- If it is learnt that the founder of the bank took all the money and kept it in his house, without being spent or used, then the crime is only theft and the ED won’t interfere because the amount has already been seized.
- But if the amount which has been stolen is used after four years to purchase some properties, then the ill-gotten money is brought back in the market.
- Or if the money is given to someone else to buy properties in different parts of the country, then there is ‘laundering’ of money.
- Hence the ED will need to step in and look into the layering and attachment of properties to recover the money.
- If jewellery costing ₹1 crore is stolen, police officers will investigate the theft. The ED, however, will attach assets of the accused to recover the amount of ₹1 crore.
Roles and functions of the ED
- Summon, Search and seizure: The ED carries out search (property) and seizure (money/documents) after it has decided that the money has been laundered, under Section 16 (power of survey) and Section 17 (search and seizure) of the PMLA.
- Arrest and detentions: On the basis of that, the authorities will decide if an arrest is needed as per Section 19 (power of arrest).
- Attachment of property: Under Section 50, the ED can also directly carry out search and seizure without calling the person for questioning. It is not necessary to summon the person first and then start with the search and seizure.
- Filing of chargesheet: If the person is arrested, the ED gets 60 days to file the prosecution complaint (chargesheet) as the punishment under PMLA doesn’t go beyond seven years.
Centrestage of our debate: Over-reach by Investigation Agencies
Why is ED comes to pictures frequently?
Ans. Money laundering
- Money laundering is the process of making significant amounts of money obtained through criminal activities, such as drug trafficking or terrorist funding, appear to have come from a legitimate source.
- As a result, it provides an incentive for money launderers to “legitimize” their ill-gotten gains through money laundering.
- The money generated is referred to as ‘dirty money,’ and money laundering is the act of converting ‘dirty money’ into ‘legitimate’ money.
Why ED mostly grips Politicians?
- Exposing rampant corruption: It is not always ironic to say that most politicians are never corrupt. We have a very inglorious past of political corruption.
- Selective witch-hunt: The ED has often been attacked for initiating investigations, raiding and questioning leaders of opposition parties, be it under the current regime or under past governments.
Issues with PMLA
- Misuse of central agencies: PMLA is being pulled into the investigation of even ordinary crimes by the Enforcement Directorate.
- Seizing of assets: Assets of genuine victims have been attached. The ED could just walk into anybody’s house.
- Politically motivated raids: In all this, the fundamental purpose of PMLA to investigate the conversion of “illegitimate money into legitimate money” was lost.
- Opacity of charges: Petitioners pointed out that even the Enforcement Case Information Report (ECIR) – an equivalent of the FIR – is considered an “internal document” and not given to the accused.
- Vagueness over evidence: The accused is called upon to make statements that are treated as admissible in evidence.
- Harassment: The ED begins to summon accused persons and seeks details of all their financial transactions and of their family members.
- Against individual liberty: The initiation of an investigation by the ED has consequences that have the potential of curtailing the liberty of an individual.
Allegations against ED
- Huge discretions: The ED is the only Central agency in the country that does not require permission from the government to summon or prosecute politicians or government functionaries for committing economic offences like money laundering.
- Used for petty crimes: PMLA is pulled into the investigation of even “ordinary” crimes and assets of genuine victims have been attached.
- Actual purpose denigrated: PMLA was a comprehensive penal statute to counter the threat of money laundering, specifically stemming from the trade in narcotics.
- Violations of Rights: PMLA was enacted in response to India’s global commitment to combat the menace of money laundering. Instead, rights have been “cribbed, cabined and confined”.
- Functional opacity: There is also a lack of clarity about ED’s selection of cases to investigate. We often see ED raiding houses of opposition parties suddenly.
- Poor rate of conviction: We have hardly read the conclusion of cases by ED. Meantime media-trial tears off the accused person’s credibility which is the most desired intent.
- Under-trials and slower prosecution: ED has been focusing on keeping the accused in custody rather than actually proving the charges against them.
Challenges to ED
- ED being dragged to court: The petitions against the ED had the effect of slowing down the investigations, as officers have to defend themselves in court.
- Foul crying politicians: There are attempts to cover up unexplained, high-value transactions that fall within the PMLA’s ambit
- Investigation of foreign transactions: Getting information on accounts and money stashed abroad to establish a trail is the biggest challenge they face.
Way forward
- The fight against corruption is intimately linked with the reform of the investigations.
- Therefore the adjudicating authorities must work in cooperation and ensure the highest standards of transparency and fairness.
- ED has been walking a tightrope to safeguard its integrity by speeding up investigations and court procedures.
- The need of the hour could be systemic fixes—and not shrill calls to throw the baby out with the bathwater.
- It is unlikely that corruption can be substantially reduced without modifying the way government agencies operate.
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