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  • Digital India Initiatives

    UPI duopoly’s rise and market vulnerabilities

    Explained | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    In just eight years, UPI now handles nearly 80% of India’s digital transactions which valued at ₹20.60 lakh crore in August, despite challenges like PhonePe and Google Pay’s market dominance.

    What are the implications of market concentration in the UPI ecosystem?

    • Systemic Vulnerability: The dominance of two Third Party App Providers (TPAPs) for online transactions like UPI PhonePe and Google Pay, which together control over 85% of the market share, creates a risk of systemic failure.
      • Any disruption in their services could significantly impact the entire UPI ecosystem, given that nearly 80% of transactions occur through these platforms.
    • Reduced Competition and Innovation: The high market concentration discourages competition, leading to fewer incentives for innovation among existing players. Smaller or new entrants face significant barriers to entry due to the scale and resources of the dominant TPAPs, stifling diversity in service offerings.
    • Foreign Dominance Risks: Both leading TPAPs are foreign-owned, raising concerns about data security and sovereignty. This foreign dominance can lead to potential vulnerabilities in terms of data protection and access to sensitive information about Indian users.

    How effective are regulatory measures in addressing duopoly issues?

    • Regulatory Challenges: The National Payments Corporation of India (NPCI) has attempted to address market concentration by capping TPAP market shares at 30%. However, this measure has not been effectively enforced, with extensions granted that allow dominant players to maintain their substantial market positions.
    • Limited Impact of Existing Regulations: Despite regulatory intentions, the continued growth of PhonePe and Google Pay indicates that existing measures have not sufficiently mitigated the risks associated with a duopoly. The potential increase in market share cap from 30% to 40% may further entrench the dominance of these platforms rather than promote a competitive landscape.

    What strategies can smaller players adopt to compete in this landscape?

    • Innovation and Niche Services: Smaller players can focus on niche markets or specialized services that cater to specific user needs, differentiating themselves from larger competitors. This could include unique features or localised services that appeal to underserved populations.
    • Collaboration and Partnerships: Forming alliances with banks, fintech companies, or other service providers can help smaller players leverage resources and technology to enhance their offerings and reach a broader audience.
    • User Education and Trust Building: Investing in user education about digital payments and building trust through transparent practices can attract users who may be hesitant to switch from established platforms. Emphasizing security features and customer support can also enhance user confidence.

    What should the Indian Government do to reduce the dependency? (Way forward)

    • Enforce and Strengthen Regulatory Caps: Mandate strict enforcement of market share caps for TPAPs and ensure timely compliance to prevent excessive concentration. Introduce penalties for non-compliance and avoid extensions to foster a competitive ecosystem.
    • Promote Indigenous Development: Provide financial incentives, subsidies, and grants to Indian TPAPs to enhance their competitiveness. Encourage innovation through dedicated programs and regulatory frameworks that support startups in the payments space.

    Mains PYQ:

    Q Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India. (UPSC IAS/2021)

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

    Household Consumption Expenditure Survey, 2023-24

    DOMR | Economics | Mains Paper 3: Inclusive Growth & Issues

    Why in the News?

    The Household Consumption Expenditure Survey (HCES) 2023-24 highlights key trends in consumption patterns across India. It is conducted by the National Statistical Office (NSO) every 5 years.

    Household Consumption Expenditure Survey, 2023-24

    Important Highlights of HCES, 2023-24:

    • Rural Spending: Monthly per capita consumption expenditure (MPCE) increased by 9.3% to ₹4,122 in 2023-24 (from ₹3,773 in 2022-23); significantly higher than ₹1,430 in 2011-12.
    • Urban Spending: MPCE rose by 8.3% to ₹6,996 (from ₹6,459 in 2022-23); up from ₹2,630 in 2011-12.
    • Rural-Urban Gap: Narrowed to 69.7% in 2023-24, compared to 71.2% in 2022-23 and 83.9% in 2011-12.
    • Food Expenditure: Share increased to 47.04% in rural and 39.68% in urban households, reversing a decades-long decline.
      • Rural households spent most on beverages and processed food (11.09%), followed by milk products (8.44%) and vegetables (6.03%).
      • Urban households spent most on beverages and processed food (9.84%), milk products (7.19%), and vegetables (4.12%).
      • Decline in expenditure on sugar and salt, with rising spending on beverages and processed foods, signaling dietary shifts.
    • Non-Food Expenditure: Accounted for the majority in both rural (52.96%) and urban areas (60.32%).
      • Major rural non-food expenses: Conveyance (7.59%), medical expenses (6.83%), and clothing & bedding (6.63%).
      • Major urban non-food expenses: Conveyance (8.46%), entertainment (6.92%), and durable goods (6.87%).
        – Regional Variations:
    • Highest MPCE: Sikkim (Rural – ₹9,377; Urban – ₹13,927) and Chandigarh (Rural – ₹8,857; Urban – ₹13,425).
    • Lowest MPCE: Chhattisgarh (Rural – ₹2,739; Urban – ₹4,927).
    • States with largest rural-urban gaps: Meghalaya (104%), Jharkhand (83%), and Chhattisgarh (80%).
    • Consumption Inequality: Gini coefficient declined from 0.266 to 0.237 in rural areas and 0.314 to 0.284 in urban areas, indicating reduced income disparity.

    Features and Significance

    • Consumption Trends: Indicates rising food expenditure driven by inflation and evolving post-pandemic behaviors.
    • Narrowing Rural-Urban Gap: Highlights improved rural consumption growth outpacing urban areas.
    • Changing Diet Patterns: Increased preference for beverages and processed foods in both rural and urban households reflects dietary shifts.
    • Regional Disparities: Offers insights into high- and low-spending regions, aiding targeted interventions.
    • Policy Implications: Highlights the need for price stabilization for essentials, rural infrastructure investments, and urban employment growth to address income disparities and rising expenses.

    PYQ:

    [2019] In a given year in India, official poverty lines are higher in some States than in others because:

    (a) poverty rates vary from State to State
    (b) price levels vary from State to State
    (c) Gross State Product varies from State to State
    (d) quality of public distribution varies from State to State

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  • Tourism Sector

    In news: Pangong Lake

    National Parks/WSPrelims Only | Enviro & Biodiversity | Mains Paper 1: Geographical Features & Their Location

    Why in the News?

    The Indian Army has installed a statue of Chhatrapati Shivaji Maharaj on the bank of Pangong lake at an altitude of 14,300 feet, a region that is close to the Line of Actual Control (LAC) with China in the eastern Ladakh sector.

    About Pangong Lake (Pangong Tso)

    • Its name is derived from the Tibetan term “Pangong Tso,” meaning “high grassland lake.” It is an endorheic (landlocked) lake with no outflow.
    • Location & Size:
      • Spans 134 km, divided between India (1/3) and the Tibetan Autonomous Region (2/3).
      • Situated at an altitude of 4,350 meters, covers 604 sq. km, and is 5 km wide at its broadest point.
    • Water & Climate:
      • Brackish water that completely freezes in winter.
      • The lake’s color shifts with sunlight and weather, displaying shades of blue, green, and red.
    • Wildlife: Acts as a breeding ground for Bar-Headed Geese, Brahmini Ducks, and Radix freshwater snails.
    • Strategic Importance: Located in the Chushul approach, a key route for potential Chinese offensives, and was a major site of conflict during the 1962 war.

    Political Features:In news: Pangong Lake

    • Border & Control: Lies on the Ladakh-China border, with the Line of Actual Control (LAC) passing through it.
    • Contested Terrain: The northern bank is a hotspot due to differing boundary perceptions; China has built roads highlighting the lake’s strategic value.
    • 1999 Incident: During Operation Vijay, China constructed a 5-km road inside Indian territory.
    • 2020 Standoff:
      • Began on May 5, 2020, following a clash in the Pangong Lake area.
      • Disengagement on the north and south banks concluded in 2021.
      • On October 21, 2024, India and China resolved the final friction points (Demchok, Depsang), ending a four-and-half-year border standoff.

    PYQ:

    [2020] Siachen Glacier is situated to the

    (a) East of Aksai Chin

    (b) East of Leh

    (c) North of Gilgit

    (d) North of Nubra Valley

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  • Indian Army Updates

    [pib] Exercise SURYA KIRAN

    Prelims Only | Security Issues | Mains Paper 3: Various Security Forces, Agencies & Their Mandates

    Why in the News?

    The Indian Army contingent has departed for Nepal to participate in the 18th edition of the Battalion-Level Joint Military Exercise SURYA KIRAN.

    About the Exercise Surya Kiran

    • Exercise Surya Kiran is a bilateral joint military exercise conducted annually between India and Nepal since 2011.
    • The 18th edition is being held in Saljhandi, Nepal, from 31st December 2024 to 13th January 2025.
    • It alternates between India and Nepal as the host nation.
    • The Indian Army contingent, consisting of 334 personnel, is led by a battalion from the 11th Gorkha Rifles.
    • The Nepal Army contingent is represented by the Srijung Battalion.
    • The exercise aims to enhance interoperability in areas like jungle warfare, counter-terrorism operations in mountainous terrains, and humanitarian assistance under the United Nations Charter.

    Features and Significance

    • Strengthens combat readiness in jungle warfare and counter-terrorism.
    • Facilitates the exchange of ideas, experiences, and best practices between the armies of both nations.
    • Reinforces the strong cultural and historical ties shared by India and Nepal.
    • Prepares both nations to address shared security challenges effectively.

    PYQ:

    [2024] Which of the following statements about the Exercise Mitra Shakti-2023 is/ are correct?

    1. This was a joint military exercise between India and Bangladesh.
    2. It commenced in Aundh (Pune).
    3. Joint response during counter-terrorism operations was a goal of this operation.
    4. Indian Air Force was a part of this exercise.

    Select the answer using the code given below:

    (a) 1, 2 and 3

    (b) 1 and 4

    (c) 1 and 4

    (d) 2, 3 and 4

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  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    Marine Heatwave killed four million Alaska seabirds

    IOCRPrelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    The 2014-2016 Pacific marine heatwave (MHW) killed over four million common murres (Uria aalge) (IUCN: Least Concerned) in Alaska. A study published in Science revealed that this event marked the largest recorded vertebrate die-off linked to warming oceans.

    About Marine Heat Waves (MHWs)

    Details
    What is it?
    • As per the National Oceanic and Atmospheric Administration (NOAA), prolonged periods of sea surface temperatures rising 3 to 4°C above average for at least five consecutive days.
    • IMD defines a marine heat wave (MHW) as a period when the sea’s temperature is above the 90th percentile(seasonally varying threshold) for at least 5 consecutive days.
    • Can last from weeks to years, depending on intensity and extent.
    • Frequency: Increasing in both occurrence and intensity due to climate change.
    • Identified as one of the most significant stressors on global marine ecosystems, causing large-scale disruptions.
    Key Observations on MHWs 2014-2016 Pacific MHW:

    • Caused the death of over 4 million common murres (Uria aalge) in Alaska, the largest vertebrate die-off linked to warming oceans.
    • Highlighted rapid and severe population declines in marine birds and a lack of ecosystem recovery even years later.
    • Increasing frequency and intensity are reshaping ecosystems, creating new survival challenges for marine species.
    • Evidence of shifts in marine environments, disrupting population dynamics.
    Impacts of MHWs On Ecosystems: 

    • Mass Mortality: Loss of habitat-forming species like kelps and corals, degrading ecosystems.
    • Trophic Cascades: Displacement of lower-trophic species and reduced ecosystem productivity.

    On Marine Species: 

    • Reduced breeding success and increased mortality.
    • Example: 2014–2016 Pacific MHW killed half the common murre population in Alaska.

    On Biodiversity: 

    • Loss of key predators disrupts food webs.
    • Threatened species face survival challenges due to limited adaptability.

     

    PYQ:

    [2020] With reference to Ocean Mean Temperature (OMT), which of the following statements is/are correct?

    1. OMT is measured up to a depth of 26ºC isotherm which is 129 meters in the south-western Indian Ocean during January-March.
    2. OMT collected during January-March can be used in assessing whether the amount of rainfall in monsoon will be less or more than a certain long term mean.

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

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  • Judicial Reforms

    The challenge of holding judges accountable

    Explained | Polity | Mains Paper 2: Executive & Judiciary

    Why in the News?

    Recently, Justice Shekhar Kumar Yadav’s speech at a Vishwa Hindu Parishad event, showing bias against Muslims, has raised concerns about the challenges in holding higher court judges accountable in India.

    Why do the judges need to be accountable?

    • Upholding Judicial Integrity: Judges are the guardians of the Constitution and are expected to exhibit the highest ethical standards to maintain public trust in the judiciary.
    • Safeguarding Democracy: Accountability ensures that the judiciary acts as a fair and impartial arbiter, without overstepping or undermining democratic institutions.
    • Preventing Abuse of Power: Judicial independence is vital, but unchecked power can lead to misconduct or corruption, as seen in cases like Justice V. Ramaswami and Justice Soumitra Sen.
    • Maintaining Public Confidence: Accountability is critical to reinforcing public confidence in the judiciary, especially in a democracy where the judiciary acts as a check on other branches of government.

    What are the accountable-related issues? 

    • High Bar for Impeachment: The process requires “proved misbehaviour or incapacity” and a two-thirds majority in Parliament, making it almost impossible to remove errant judges.
    • Resignation to Evade Accountability: Judges like Justice Soumitra Sen and P.D. Dinakaran resigned before the completion of impeachment proceedings, avoiding scrutiny while retaining post-retirement benefits.
    • Immunity Misuse: Judges continue to enjoy post-retirement benefits even after accusations of misconduct, as seen in Justice Ramaswami’s case, undermining accountability.
    • Limited Scope for Independent Oversight: The judiciary lacks an independent review mechanism outside the Parliament-driven impeachment process, leaving little room for holding judges accountable in real time.

    What is the review mechanism of committee set up under the Judges (Inquiry) Act, 1968?

    • Initiation: A removal motion, signed by 100 Lok Sabha MPs or 50 Rajya Sabha MPs, is submitted and approved by the Speaker or Chairman to initiate the process.
    • Investigation: A three-member committee (Supreme Court judge, Chief Justice of a High Court, and an eminent jurist) is constituted under the Judges (Inquiry) Act, 1968 to investigate allegations of “proved misbehaviour or incapacity.”
    • Parliamentary Decision: If the committee confirms the charges, the motion is debated in Parliament and requires a two-thirds majority in both Houses for the judge’s removal by the President.

    Is there any accountability limitation by the Constitution for the judges? 

    • Article 124(4) and (5): These articles provide for the removal of judges only through impeachment, which is a political and cumbersome process requiring a majority in Parliament.
    • Lack of Disqualification: The Constitution does not explicitly disqualify judges found guilty of misconduct from holding future public office.
    • Insufficient Deterrence: Provisions under the Judges (Inquiry) Act, 1968, do not offer significant penalties apart from removal, leaving gaps in ensuring judicial accountability.
    • Ambiguity in “Proved Misbehavior”: The term is not clearly defined, leading to challenges in establishing guilt and enforcing accountability.

    Way forward: 

    • Streamlining the Impeachment Process: Simplifying procedures and reducing the threshold for initiating impeachment could make it easier to hold judges accountable.
    • Clear Disqualification Guidelines: Introducing clear guidelines regarding disqualification from future judicial roles following findings of misconduct would reinforce accountability.
    • Public Awareness and Advocacy: Increasing public awareness about judicial accountability issues can foster demand for reform and greater scrutiny of judicial conduct.
    • Legislative Reforms: Revisiting the Judges (Inquiry) Act, 1968, to address its limitations and ensure it meets contemporary standards for accountability is crucial for restoring public confidence in the judiciary.

    Mains PYQ:

    Q Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to the appointment of judges of higher judiciary in India.(UPSC IAS/2017)

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  • Foreign Policy Watch: India-United States

    U.S.-India ties will be strengthened, but expect tariff trouble, FTA push: Former Ambassador Juster

    Explained | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Why in the News?

    After the USA’s election result, U.S.-India (in 2nd term of Donald Trump) ties could be stronger, but issues over tariffs might cause trouble.

    Why US India ties will be strengthed?

    • Shared Strategic Interests: The U.S. and India both view China as a significant strategic challenge, which aligns their interests in the Indo-Pacific region. This common perspective fosters collaboration on defence and security matters.
    • Political Will and Leadership: The anticipated second term of Donald Trump is expected to reinforce the U.S.-India relationship, as evidenced by the strong ties developed during his first term. Trump’s cabinet nominees are also pro-India, indicating a continuity of support for enhancing bilateral relations.
    • Economic Cooperation Potential: There is a renewed focus on trade agreements and economic partnerships, including the possibility of finalizing a Free Trade Agreement (FTA), which could enhance market access and reduce tariffs, benefiting both economies.
    • Defence and Technology Collaboration: Continued emphasis on defence cooperation and technology partnerships, particularly in areas like semiconductors and emerging technologies, will strengthen ties and enhance mutual security interests.

    In which area would ties be strengthened?

    • Defence and Security: The U.S. and India have significantly enhanced their defence cooperation, including joint military exercises and technology transfers, such as the recent offer to restart the transfer of jet engine technology to India.
      • The India-U.S. Initiative on Critical and Emerging Technology (iCET) aims to foster collaboration in areas like artificial intelligence, quantum technologies, and cybersecurity.
    • Economic Relations: Bilateral trade has surged, increasing by 72% from 2017-18 to 2022-23, highlighting a robust economic partnership.
      • Both nations are keen on resolving trade disputes to further enhance mutual benefits.
    • Technological Collaboration: Initiatives like INDUS-X focus on integrating defense start-ups from both countries, promoting innovation in military technology and enhancing capabilities in critical sectors like semiconductors.
    • Multilateral Cooperation: Engagement through platforms like the Quad (with Japan and Australia) strengthens regional security cooperation against common threats, particularly from China.

    What were the successful agreements between India and the USA during the first term of the Donald Trump period? 

    • Communications Compatibility and Security Agreement (COMCASA): Signed in September 2018, this agreement aimed to facilitate secure communication between the armed forces of both nations, thereby enhancing interoperability during joint operations.
    • Basic Exchange and Cooperation Agreement (BECA): Finalized in October 2020, BECA provided a framework for sharing geospatial intelligence, which is crucial for military planning and operations.
    • Industrial Security Annex (ISA): This agreement, signed in December 2019, allowing for greater collaboration in defence manufacturing and technology transfer between the two countries.
    • Strategic Trade Authorization (STA-1) Status: The U.S. elevated India to STA-1 status, allowing for easier access to advanced technologies that were previously restricted to NATO allies.
    • 2+2 Dialogue Format: This mechanism was initiated to bring together the defense and foreign ministers of both countries to discuss strategic issues, enhancing diplomatic engagement.

    What could be the challenges between India and the USA?

    • High Tariffs and Market Access: Disagreements over tariffs and market access for U.S. products in India, particularly in agriculture and technology sectors, remain significant irritants.
    • Geopolitical Tensions: Differences in policy regarding Iran and Russia may create friction in the bilateral relationship, particularly with India’s historical ties to Russia.
    • Legal Investigations: Ongoing investigations by the U.S. Department of Justice into cases involving Indian entities could complicate diplomatic relations and create perceptions of bias against the Indian government.

    What should India do to address the challenges? (Way forward)

    • Engage in Constructive Dialogue: India should actively engage with the U.S. to address tariff issues and seek mutually beneficial solutions that enhance market access for American products while protecting domestic interests.
    • Strengthen Economic Cooperation Frameworks: Pursuing comprehensive economic agreements that encompass trade, investment, and technology sharing can help mitigate tensions and foster a more robust partnership.
    • Clarify Stances on Geopolitical Issues: India needs to communicate its positions on sensitive geopolitical matters clearly to avoid misunderstandings with the U.S., particularly regarding its relationships with Iran and Russia.

    Mains PYQ:

    Q  Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (UPSC IAS/2020)

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  • ISRO Missions and Discoveries

    ISRO SpaDEx PSLV-C60 Launch

    Prelims Only | Science Tech | Mains Paper 3: Achievements Of Indians In S&T

    Why in the News?

    ISRO’s PSLV will launch 2 satellites, SDX01 and SDX02, into a 476-km circular orbit in the first week of January to conduct the Space Docking Experiment (SpaDEx), marking India’s entry into the elite group of nations capable of mastering Space Docking.

    What is PSLV-C60 SpaDeX Mission?

    • The PSLV-C60 SpaDeX Mission is a landmark mission aimed at demonstrating in-space docking and undocking technology.
    • This mission would position India as the fourth country in the world to master space docking, following the US, Russia, and China.
    • Objective:
      • To demonstrate the docking, undocking, and rendezvous capabilities of two satellites in low-Earth orbit (LEO).
      • Facilitate power transfer between docked spacecraft, an essential capability for future space missions.
    • Satellites: (Each weighing 220kg.)
      • SDX01 (Chaser): Equipped with a High-Resolution Camera (HRC).
      • SDX02 (Target): Carries a Miniature Multispectral Payload (MMX) and a Radiation Monitor (RadMon).
    • Configuration:
      • The satellites will be launched using the Polar Satellite Launch Vehicle (PSLV-C60) in a core-alone (CA) configuration, meaning without strap-on boosters.
      • They will be placed in a 476-km circular orbit with an inclination of 55°.
    • Post-Docking:
      • After the docking demonstration, the satellites will continue standalone missions for two years, conducting imaging, natural resource monitoring, and radiation environment studies.
    • Significance: It is a strategic step towards several ambitious space objectives, including:
      • Preparing for the Gaganyaan human spaceflight program
      • Enabling Chandrayaan-4 lunar sample return missions
      • Developing the Bharatiya Antariksh Station (BAS), India’s proposed space station35

    What is Space Docking?

    • Space docking refers to the process where two spacecraft in orbit rendezvous and physically connect to form a single entity. It is a highly complex and precise maneuver essential for advanced space missions.
    • Key Steps of Space Docking:
    1. Rendezvous: Involves bringing two spacecraft into the same orbit with minimal distance and velocity difference.
    2. Docking: Establishing a mechanical connection between the spacecraft using specialized docking systems.
    3. Power and Resource Sharing: Once docked, the spacecraft can transfer power, fuel, or crew to support joint operations.

     

    PYQ:

    [2018] With reference to India’s satellite launch vehicles, consider the following statements:

    1. PSLVs launch satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites.
    2. Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth.
    3. GSLV Mk III is a four-staged launch vehicle with the first and third stages using solid rocket motors; and the second and fourth stages using liquid rocket engines.

    Which of the statements given above is/are correct?

    (a) 1 only
    (b) 2 and 3
    (c) 1 and 2
    (d) 3 only

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  • RBI Notifications

    Real Effective Exchange Rate (REER)

    Prelims Only | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Why in the News?

    The rupee has been hitting record lows against the US dollar but has simultaneously reached an all-time high in real effective terms. In November 2024, the Real Effective Exchange Rate (REER) index of the rupee touched 108.14, strengthening by 4.5% during the year, according to the RBI.

    What is Effective Exchange Rate (EER)?

    • The Effective Exchange Rate (EER) measures the value of a currency relative to a basket of currencies from its major trading partners.
    • EER is a weighted average of exchange rates, reflecting the importance of each trading partner in a country’s total foreign trade.
    • Types of EER:
    1. Nominal Effective Exchange Rate (NEER):
    • NEER is the weighted average of a currency’s exchange rates with the currencies of its trading partners.
    • It does not adjust for inflation, representing only nominal changes in currency value.
    • Higher NEER: Indicates the domestic currency has appreciated compared to the basket of currencies.
    1. Real Effective Exchange Rate (REER):
    • REER adjusts NEER for inflation differentials between the country and its trading partners.
    • It measures the real purchasing power of a currency, providing insights into its competitiveness in international trade.
    • The base year for REER in India is 2015-16, set at 100.
      • REER > 100: Indicates an overvalued currency, making exports less competitive.
      • REER < 100: Indicates an undervalued currency, making exports more competitive.

    How does it impact Exports?

    REER provides a real measure of currency competitiveness, adjusted for inflation:

    • REER > 100 (Overvalued Currency):
      • Exports suffer, as Indian goods and services become expensive in global markets.
      • Imports rise, as foreign goods become cheaper in comparison.
      • May lead to a widening trade deficit.
    • REER < 100 (Undervalued Currency):
      • Exports thrive, as Indian goods and services are priced more competitively in global markets.
      • Imports decrease, as foreign goods become relatively expensive.
      • Improves the trade surplus and supports domestic industries.

    PYQ:

    [2022] With reference to the Indian economy, consider the following statements:

    1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
    2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
    3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.

    Which of the above statements are correct?

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

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  • International Space Agencies – Missions and Discoveries

    In news: Parker Solar Probe

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Parker Solar Probe

    Why in the News?

    The Parker Solar Probe has reached 6.1 million km from the Sun’s surface — the closest any human-made object has ever been. At this distance, if the Earth and Sun were 1 meter apart, the probe would be 4 cm from the Sun.

    What is the Parker Solar Probe?

    Details
    About 
    • A NASA mission launched on August 12, 2018, as part of the “Living With a Star” program to study the Sun’s corona and solar winds.
    • Named after Eugene Parker, the first NASA mission named after a living researcher.
      • Size: Comparable to a small car.
      • Instruments: Equipped with four instruments to study electric and magnetic fields, plasma, and high-energy particles.
    • Completed 21 orbits around the Sun and uses Venus flybys to gradually get closer to the Sun.
    How did it manage to come so close to the Sun?   On December 24, 2024, it reached 6.1 million km from the Sun’s surface, the closest any human-made object has been.

    Technologies:

    • Heat Shield: A 4.5-inch carbon-composite shield withstands temperatures up to 1,377°C while keeping instruments stable at 29.4°C.
    • Venus Flybys: Gravitational assists from Venus gradually reduced the orbit.
    • Speed: Travels at 6,92,000 km/h, making it the fastest human-made object.
    Significance of the Mission
    • Scientific Contributions: Provides insights into why the Sun’s corona is much hotter than its surface and the origins of solar winds.
    • Practical Implications: Improves predictions of space weather events that affect satellites, power grids, and communications on Earth.
    • Technological Feat: Demonstrates advanced spacecraft engineering to withstand extreme solar conditions.

     

    PYQ:

    [2010] In the context of space technology, what is “Bhuvan”, recently in the news?

    (a) A mini satellite launched by ISRO for promoting the distance education in India

    (b) The name given to the next Moon Impact Probe, for Chandrayaan-II

    (c) A geoportal of ISRO with 3D imaging capabilities of India

    (d) A space telescope developed by India

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