Note4Students
From UPSC perspective, the following things are important :
Prelims level: Foldscope
Mains level: NA
Researchers from the Indian Institute of Science (IISc), Bengaluru, have developed a cheap paper microscope (foldscope) connected to a smartphone camera that could find wider application in a variety of research areas, and in some cases potentially replace more expensive equipment.
What is Foldscope?
- The Foldscope is a handheld microscope made mostly of paper that can be easily linked to a smartphone camera.
- It has a magnification of around 140x and can identify objects just 2 micrometres wide.
- It was first created by researchers at Stanford University in 2014.
- IISc version of Foldscope costs around Rs 400, much cheaper than that of Stanford’s one.
How is Foldscope comparable to electron microscope?
- The researchers found that Foldscope could capture the roundness and aspect ratio of an object to within 5% of those imaged by a state-of-the-art instrument called a scanning electron microscope (SEM).
- SEM costs more than Rs 50 lakh each.
- Preparing a sample for study through a Foldscope takes less than an hour, whereas the same process for an SEM was “tedious and time-consuming”.
Potential applications
- Foldscopes can be used in pharmaceuticals (to inspect drug products), environmental science (to observe pollutants), and cosmetics (to observe powders and emulsions), among other fields.
- They can also be used to study “soil particles’ morphology,” which can “help understand soil structure, nutrient availability, and plant growth” in agriculture.
- It allows for in-field soil analysis and visualisation of soil structure per Indian Standard Soil Classification System which earlier required bulky microscopes with high resolution.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CAPEX
Mains level: Capital Expenditure by the Centre and states
Central Idea
- The budget’s clear thrust towards capital expenditure is evident in the 33% increase in its allocation. The primary goal of this allocation is to bolster aggregate demand in the short term and enhance the economy’s productive capacity in the long term. This strategy is widely regarded as beneficial, especially considering the crucial role that infrastructure plays in the growth and development of any economy.
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Capital Expenditure of the states
- Capex of the states exceed than the central govt: The combined spending of Indian states on capital expenditure now exceeds that of the central government.
- For example: In 2021-22, this figure combined for states and Union territories, according to budget estimates, was ₹10.5 trillion. The Centre’s effective capital expenditure that year was ₹8.4 trillion, including ₹2.5 trillion as grant for creation of assets.
What is Capital Expenditure (CAPEX)?
- Capital expenditure refers to investments in upgrading existing or building new physical assets by the government or private businesses.
- As businesses expand, capex has a multiplier effect on the economy, creating demand and unleashing animal spirits.
Main types of Capex
- Infrastructure development: This includes building and upgrading public infrastructure such as roads, highways, railways, ports, airports, power plants, and water supply systems.
- Defence and security: This involve the acquisition and maintenance of defence equipment, weapons systems, and other security-related investments.
- Social sector spending: This includes investment in areas such as education, healthcare, and social welfare programs to improve the quality of life of the citizens.
- Rural development: This includes spending on agricultural and rural infrastructure such as irrigation systems, rural electrification, and rural housing.
- Capital investments in public sector enterprises: The government may also invest capital in public sector enterprises to improve their efficiency and profitability
Key reasons why the Indian government emphasizes Capex?
- Promoting economic growth: Capital expenditure is critical for promoting economic growth by creating demand for goods and services, boosting private sector investment, and increasing employment opportunities. By investing in infrastructure, the government can provide the necessary framework for businesses to grow and thrive.
- Improving public services: Capital expenditure is required to build and upgrade public facilities such as hospitals, schools, and water supply systems, and provide necessary equipment and supplies. This investment in public services is crucial for improving the quality of life of citizens and promoting social and economic development.
- Infrastructure development: It is critical for promoting trade, commerce, and investment, and improving the country’s overall competitiveness. By investing in infrastructure, the government can create new economic opportunities, support the growth of existing industries, and attract foreign investment.
- Creating employment opportunities: Capital expenditure creates employment opportunities in the short term through the construction of infrastructure projects and in the long term by supporting economic growth and promoting private sector investment.
- Attracting private sector investment: The government’s emphasis on Capex can also help attract private sector investment by providing the necessary infrastructure and a favourable business environment.
What are the concern over State capex?
- Uneven capacity CAPEX: One general macro-economic challenge is to address this uneven inclination of states or capacity for capital expenditure, which adds uncertainty to the impact of an expansionary fiscal policy led by capex, thus weakening its potential benefits.
- The ultimate aim of all CAPEX is to enhance the productive capacity of the economy: The nature of state capital expenditure drawn in is also vitally important. Ideally, the nature of state capital expenditure drawn in by central capital expenditure should be such that it dovetails with the latter to optimize long-term enhancements of economic capacity.
- States have tendency to postpone capex: The Union budget for 2023-24 encourages states to make reforms in urban local bodies to become creditworthy for municipal bond issuance. However, states have a tendency to postpone capital expenditure until revenue streams firm up.
- States need to improve their execution capacity and establish an enabling regulatory environment to ensure quality and speed of expenditure.
- The planning and budgeting cycle of states should also be aligned with fund releases to fully utilize resources within the available time.
- States play a crucial role in capital expenditure and must not only budget more but also spend fully and uniformly throughout the year.
Conclusion
- States need to prioritize timely and efficient execution of capital expenditure and fully utilizing budgeted capital amounts uniformly throughout the year. The RBI report, while acknowledging that Indian states made higher capital outlays in 2022-23, notes that states would do well to mainstream capital planning rather than treating them as residuals and first stops for cutbacks in order to meet budgetary targets.
Mains Question
Q. What do you understand by Capital Expenditure (CAPEX)? Highlight the concerns over capex by the states and suggest a way ahead.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Constituent assembly
Mains level: Women participation in constituent assembly
Central idea
- The process of drafting our Constitution during Partition and after a long period of colonization was a magnificent and dynamic process. Despite being part of the Assembly, voices and contributions of women have been neglected and overshadowed. The riveting work by Achyut Chetan,” The Founding Mothers of the Republic” published by Cambridge University Press in 2022 serves as a means of rectifying this historical omission and giving due credit to the women who played a crucial role in shaping India’s democracy.
Women In constitutional Assembly
- When the Constitution was completed, there were 11 women members of the Constituent Assembly who signed onto it.
- These drafters were G Durgabai, Ammu Swaminathan, Amrit Kaur, Dakshayani Velayudhan, Hansa Mehta, Renuka Ray, Sucheta Kripalani, Purnima Banerjee, Begum Qudsiya Aizaz Rasul, Kamala Chaudhri and Annie Mascarene.
- The Constituent Assembly first met on December 11, 1946 and had 169 sessions before all its members signed the document on January 24, 1950
How do we know what happened in the Constituent Assembly?
- Constituent Assembly Debates (CAD) is the only source: A rich but by no means the only source is the 12 volumes of the Constituent Assembly Debates (CAD), consisting of speeches made by members and the amendments to the draft articles.
- CAD misses no. of reports and notes pf various committes: However, what the CAD does not have are the reports and notes of the various committees of the CA.
- For instance: Much groundbreaking work was done in the Advisory Committee (chaired by Vallabhbhai Patel), which in turn had two sub-committees the Fundamental Rights Sub Committee and the Minorities Sub-Committee.
Role of Women in the constituent assembly
- Hansa Mehta and Amrit kaur: Hansa Mehta and Amrit Kaur were on the Advisory Committee, with both being members of the Fundamental Rights Sub Committee and Kaur serving also on the Minorities Sub-Committee.
- G Durgabai: G Durgabai occupied effective positions on two important committees on procedural affairs The Steering Committee and the Rules Committee.
- Women were highly active: Women members were present and highly active on almost all significant committees and subcommittees.
- Women members often faced disrespect and discrimination: For instance, Renuka Ray opposed the clause on the Right to Property which put the compensation given within the purview of courts. During the debates on the floor of the Assembly too she was constantly interrupted and heckled even by the men of the eminence and tried to deride their amendments
- Women members made their opinions known and stood firm: In the settings of the committees they wrote notes of dissent, Amrit Kaur and Hansa Mehta wrote notes of dissent against decisions that relegated the uniform civil code to the non-justiciable rights, allowed the state to impose conscription for compulsory military service, at each stage when the committees made their official recommendations to the higher bodies of the Assembly
For Instance: Views of Dakshayani Velayudhan on reservation
- Dakshayani Velayudhan, the only woman member from the Scheduled Castes communities, argued against reservations.
- She refused by saying “to believe that 70 million Harijans are to be considered as a minority and argued that reservations would not be in the best interests of them.
- She also argued that “the working of the Constitution will depend upon how the people will conduct themselves in the future, not on the actual execution of the law. When this Constitution is put into practice, what we want is not to punish the people for acting against the law, but for the state to take on the task of educating citizens for a transformation.”
- Representative governments increased but women count remains low: According to UN Women, as of September 2022, there were 30 women serving as elected heads of state and/or of government in 28 countries (out of a total of 193 UN member states).
- Dichotomy in active participation: There is the dichotomy between the rapid increase of women’s participation as voters in elections and other political activities, and the slow rise of female representation in Parliament.
- Global average women representation: As of May 2022, the global average of female representation in national parliaments was 26.2 percent.
- Above average representation: The Americas, Europe, and Sub-Saharan Africa have women’s representation above the global average;
- Below average representation: Asia, the Pacific region, and the Middle East and Northern Africa (MENA) region, are below average.
- Varied representation within Asian countries:
- The South Asian countries faring worse than the others.
- IPU data of May 2022 showed that women’s representation in Nepal, for example, was 34 percent, in Bangladesh 21 percent, in Pakistan 20 percent, in Bhutan 17 percent and in Sri Lanka 5 percent.
- For India, women’s representation in the Lok Sabha (the Lower House) has remained slightly below 15 percent.
- The study does not include Afghanistan, but World Bank data of 2021 stated that female representation in the country’s last parliament was 27 percent.
Conclusion
- As we approach 75 years of our Constitution, it’s time for scholars, teachers, students, lawyers, judges and all others who engage with our constitution-making efforts to look to sources that tell a more complete story of our drafters. The quiet women and the more visible men should both be recalled, for their roles and their contributions. That would be an accurate telling of how our founding document came to be.
Mains Question
Q. The role of women in constitution making has often been neglected. In light of this illustrate the participation of women during India’s constitution making process.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Renewable Energy
Mains level: Distributed Renewable Energy and women , advantages and challenges
Central Idea
- Women from rural India are adopting clean energy-based livelihood technologies to catalyse their businesses. From solar refrigerators to silk-reeling machines and biomass-based cold storage to bulk milk chillers, distributed renewable energy (DRE) is transforming women’s livelihoods at the grassroots.
What is Distributed Renewable Energy (DRE)?
- DRE refers to the generation and distribution of electricity from renewable energy sources, such as solar, wind, hydro, geothermal, and biomass, through small-scale, decentralized systems.
- These systems are often installed in remote or rural areas where it is difficult or expensive to connect to a centralized power grid.
- DRE systems can range from individual rooftop solar panels to small-scale wind turbines, mini-hydro systems, and biomass generators.
- They are typically designed to serve a single household or community, rather than a large urban or industrial center.
- DRE systems are also known as off-grid or mini-grid systems, and they can be standalone or connected to a larger power grid.
Recent Statistics
- More than 80% are women: A recent Council on Energy, Environment and Water (CEEW) study has shown that out of the 13,000 early adopters of clean tech livelihood appliances, more than 80% are women.
- Future projection: By 2030, India is expected to see 30 million women-owned micro, small and medium enterprises (MSMEs) employing around 150 million people. DRE livelihood technologies a $50 billion market opportunity in India alone have the potential to transform rural livelihoods, with women at the core of this transition.
Advantages of DRE systems
- Several advantages: They are more resilient to natural disasters and grid failures, they can reduce energy costs for communities and households, and they can increase energy access in areas that are not served by the main power grid.
- Reduce carbon emissions: Additionally, DRE systems can reduce carbon emissions and help to mitigate the impacts of climate change.
- DRE advantages for women: DRE-powered technologies provide an additional advantage to women farmers and microentrepreneurs by enhancing income opportunities through mechanization. They also free women from several gender-assigned manual activities that are laborious.
Steps to scale up this impact
- Leverage the experience of early women adopters: The technology providers must leverage early users to share their experiences with potential customers, becoming demo champions/sales agents to market these products, based on their first-hand product experience and local credibility.
- For example: Kissan Dharmbir, an energy-efficient food processor manufacturer, engaged Neetu Tandan, an Agra-based micro-entrepreneur using the processor to produce fruit squashes and jams, as a demo champion. Her demonstrations are generating sales leads.
- Organise hyperlocal events and demos: These events also create spaces for women to network, become aware of the product and connect with people who can help them procure, finance and use these machines.
- For example: At an event in Hamirpur, Uttar Pradesh, more than 200 women booked seven appliances on the spot, including solar sewing machines and multi-purpose food processors.
- Enable easy finance to purchase products: Limited avenues to avail financing for these clean technology products remain a bottleneck. Financiers supporting women farmers and microentrepreneurs should consider the technologies themselves as collaterals while easing the loan application process.
- For example: Samunnati Finance, a financier in the agri-value chain, availed an 80% first-loan default guarantee to support six women-led FPOs in Andhra Pradesh that purchased 100-kg solar dryers.
- Support backwards and forward market linkages: Only technology provision is not enough in all cases. Many rural products have larger market potential. Thus, finding and connecting producers to consumption hubs in urban areas are equally important to generate higher incomes.
- Ensure adequate after-sales services buy backs: Technology manufacturers and promoters should also ensure adequate after-sales services and buy-backs. To build financiers’ confidence, evidence on the economic viability of these technologies should be shared and promoters must offer partial default guarantees.
- Enable policy convergence: No private sector entity has the kind of reach and scale government institutions have, so leveraging their reach is imperative to exponentially scale up. Multiple Ministries are working towards promoting livelihoods for women from State rural livelihood missions, horticulture and agriculture departments, Ministry of Micro, Small and Medium Enterprises, to the Ministry of Textiles. They should embrace clean energy solutions to further their respective programmes and outcomes.
- Perception of high risk: The high starting price and newness of DRE appliances can create a perception of high risk, particularly for women users who may have a lower risk appetite due to socio-economic factors.
- Low belief: Due to historical limitations on women’s access to new information, people tend to want to physically touch and see high-tech, high-priced DRE products before believing in their ability and promised benefits.
- Limited network: Women often struggle with established market linkages because of their limited mobility and networks outside their villages.
Conclusion
- Much like it takes a village to raise a child, scaling the impact of clean energy solutions on women’s livelihoods needs a village of policymakers, investors, financiers, technology promoters and other ecosystem enablers. Only then can we truly unlock the potential of rural women and clean technologies simultaneously.
Mains question
Q. What do you understand by Distributed Renewable Energy (DRE)? What is to be done scale up this impact from thousands of women to millions of them?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tertiary Sector, PMI
Mains level: India's services economy
The Purchasing Managers Index (PMI) for the services sector in India rose to 55.3 in February. This marks the highest level of the PMI in the services sector in 12 years, driven by an increase in new business orders and employment.
Service Sector
The service sector, also known as the tertiary sector, includes a wide range of economic activities that are focused on providing intangible goods and services to customers.
Some examples of activities that fall under the service sector include:
- Hospitality and tourism: This includes activities such as hotels, restaurants, travel agencies, and tour operators.
- Retail and wholesale trade: This includes businesses that buy and sell goods, such as supermarkets, department stores, and online retailers.
- Financial services: This includes banks, insurance companies, and investment firms.
- Professional and business services: This includes activities such as legal services, accounting, consulting, and advertising.
- Information and communication technology: This includes activities such as software development, telecommunications, and data processing.
- Healthcare and social assistance: This includes activities such as hospitals, clinics, nursing homes, and social services.
- Education and training: This includes activities such as schools, colleges, universities, and vocational training.
- Transportation and logistics: This includes activities such as shipping, warehousing, and distribution.
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Purchasing Managers’ Index
- PMI is an indicator of business activity — both in the manufacturing and services sectors.
- The S&P Global India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies.
- It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
- It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
How is the PMI derived?
- The PMI is derived from a series of qualitative questions.
- Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.
How does one read the PMI?
- A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
- Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
- If the figure is higher than the previous month’s then the economy is expanding at a faster rate. If it is lower than the previous month then it is growing at a lower rate.
Recent trends in Services PMI
- For the 19th straight month, the headline figure was above the neutral 50 mark, denoting expansion.
- There was substantial moderation in cost pressures as input prices increased at the slowest pace in almost two-and-a-half years and output charge inflation softened to a 12-month low.
- Still, capacity pressures remained mild and jobs rose only marginally.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: World Bank Index on the Life Cycle of Working Women
Mains level: Women in workforce
Central idea: The article reports on India’s score in the World Bank Index on the life cycle of working women.
World Bank Index on the Life Cycle of Working Women
- It is a tool developed by the World Bank to measure and track the progress of women’s economic participation and opportunities over their lifetimes.
- It is based on a set of indicators that measure factors such as laws and regulations affecting women’s employment, access to finance, and gender-based violence and harassment in the workplace.
The index is divided into three categories:
- Starting a job,
- During employment, and
- After employment.
- Each category includes a set of indicators that measure the specific challenges and opportunities faced by women at different stages of their careers.
- The purpose of the index is to provide policymakers and stakeholders with data and insights that can be used to inform policies and programs aimed at improving women’s economic opportunities and outcomes.
- The index is updated periodically to track progress over time and identify areas where more action is needed.
India’s performance
- India has scored 74.4 out of 100 in the World Bank Index on the life cycle of working women, which measures factors like laws, regulations, and practices affecting women’s economic participation.
- This score places India at 140th out of 190 countries surveyed in the index.
Issues highlighted
- India has made progress in certain areas, such as maternity benefits and anti-discrimination laws.
- There are still significant gaps in areas like equal pay and access to finance.
- The report also highlights the impact of the COVID-19 pandemic on women’s economic participation, with many women facing job losses and reduced hours of work.
Key recommendations
- The report concludes by recommending actions that can be taken to improve women’s economic participation, such as-
- Increasing access to childcare
- Promoting flexible work arrangements and
- Addressing gender-based violence and harassment in the workplace
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pyramids of Giza, Cosmic-Ray Muon Radiography
Mains level: Not Much
A hidden corridor has been unearthed by scientists inside the Great Pyramid of Giza using a non-invasive technique called cosmic-ray muon radiography.
What is Cosmic-Ray Muon Radiography (CMR)?
- CMR is a technique used to study the density and composition of materials hidden within large and dense objects, such as geological formations, archaeological sites, and industrial facilities.
- The technique involves using muons, a type of cosmic-ray particle, to generate images of the interior of such objects.
- Muon particles are created when cosmic rays, mostly protons and atomic nuclei, collide with atoms in the Earth’s upper atmosphere.
- These muons travel through the atmosphere and penetrate deep into the ground, passing through objects along their path.
- Muons are highly penetrating particles that can penetrate several meters of rock or other materials, making them ideal for imaging the internal structure of objects.
Working principle
- The principle behind CMR is to measure the flux of muons passing through an object and compare it to the expected flux based on the object’s geometry and composition.
- Differences in the measured and expected flux indicate variations in the object’s density or composition, which can be used to create an image of the object’s internal structure.
Applications
Some key applications of cosmic-ray muon radiography include:
- Volcano monitoring: By using muon radiography to create images of the interior of volcanoes, scientists can better understand their structure and potential eruption hazards.
- Archaeology: Muon radiography can be used to explore the interior of pyramids and other ancient structures without damaging them.
- Nuclear reactor monitoring: Muon radiography can be used to detect the presence of nuclear materials within reactors and to monitor their condition over time.
Great Pyramid of Giza
- The Great Pyramid is the largest of the three pyramids in Giza, originally standing roughly 147 m above the Giza plateau.
- Construction was started in 2550 BC, during the reign of Khufu, often considered the greatest pharaoh of Egypt’s old kingdom.
- It is estimated that the pyramid was built using 2.5 million stone blocks, each weighing between 2.5 and 15 tonnes.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Yellowstone NP
Mains level: Not Much
Yellowstone National Park, which celebrated its 151st anniversary earlier this week, is widely considered to be the first national park in the world.
Yellowstone National Park
- It is a large protected area located primarily in the U.S. state of Wyoming, although it also extends into Montana and Idaho.
- It was established in 1872 and is widely considered to be the first national park in the world.
- It spans an area of over 9,000 sq. km comprising lakes, canyons, rivers, iconic geothermal features such as the Old Faithful geyser, and mountain ranges.
Some key features and attractions of Yellowstone National Park include:
- Geothermal features: Yellowstone is famous for its geothermal features, including geysers, hot springs, mud pots, and steam vents. The most famous of these is Old Faithful, a geyser that erupts on a regular schedule.
- Wildlife: Yellowstone is home to a diverse array of wildlife, including grizzly bears, wolves, bison, elk, and moose. Visitors can see these animals in their natural habitats throughout the park.
- Scenic drives: The park has several scenic drives, including the Grand Loop Road, which takes visitors to many of the park’s major attractions.
- Fishing: The park has many rivers and lakes that offer excellent fishing opportunities, including the Yellowstone River.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Artificial Intelligence, Update: AI tools
Mains level: AI future and challenges, AI arms race
Central Idea
- Hosting the G20 leaders’ summit later this year is an excellent opportunity for India to demonstrate its capabilities and contributions to information technology and the digital economy. The newest weapons will not be the biggest bombs, tanks or missiles but AI-powered applications and devices which will be used to wage and win wars. India must wake up to the challenge to protect itself against the potential consequences of an AI war.
(Source: Indian Express, Article is written by Aasif Shah, a fellow from IIT Madras and winner of the Young Researcher Award 2022 from Indian Commerce Association)
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Interesting: Message from Robot
- Recalling the conversation between the world’s first human robot Sophia and CNBC’s Andrew Ross, in which he voiced his concerns about advancements in Artificial intelligence (AI), We all want to prevent a bad future where robots turn against humans,
- Sophia retorted, don’t worry if you’re nice to me, I will be nice to you.
- The message was clear: It is up to humans and nations how they utilise AI and appreciate its advantages.
- The astonishing AI advancements are nothing but a warning to prepare for the unexpected.
What is Artificial Intelligence (AI)?
- AI is a constellation of technologies that enable machines to act with higher levels of intelligence and emulate the human capabilities of sense, comprehend and act.
- The natural language processing and inference engines can enable AI systems to analyze and understand the information collected.
- An AI system can also take action through technologies such as expert systems and inference engines or undertake actions in the physical world.
- These human-like capabilities are augmented by the ability to learn from experience and keep adapting over time.
- AI systems are finding ever-wider application to supplement these capabilities across various sectors.
- AI has grown significantly in recent times: There is widespread fear that as the usage of AI increases, both blue- and white-collar workers may be replaced and rendered unemployed. But despite criticism in some parts of the world, AI has grown significantly in recent times.
- Global Market size: The global AI market size was estimated at $65.48 billion in 2020 and is expected to reach $1,581.70 billion by 2030, according to a recent Bloomberg report.
- Applications and global impact: The growing impact of AI on banking and financial markets, e-commerce, education, gaming and entertainment is changing the world order.
- Driving forces: The driving forces behind the evolution of AI growth are greater availability of data, higher computing power and advancements in AI algorithms.
- Many people believe that AI has little bearing on their daily lives: In actuality, we all interact with AI through social media, transportation, banking, cell phones, smartwatches, and other devices.
The Real AI threat: AI arms race
- An Iranian nuclear scientist was hit by machine gun fire in 2020.
- It was later discovered that the scientist was actually targeted and killed by an Israeli remote-controlled machine gun using AI.
- There are a series of similar adverse incidents that spark moral discussions regarding the potential benefits and drawbacks of AI.
- The AI arms race between countries like the US, China and Russia, points to the possibility that AI can escalate global conflict and pose significant security risks.
- Smaller countries like Israel and Singapore are also in the lead.
Where does India stand in the AI ecosystem?
- Investments in India is increasing: According to a Nasscom report, investments in AI applications in India are expected to increase at a compound annual growth rate (CAGR) of 30.8 per cent and reach $881 million during 2023.
- Contribution of India: The report further added that although there is a massive increase in global investments in AI, the contribution of India has remained at 1.5 per cent.
- Centres of Excellence for artificial intelligence (AI): In the Budget 2023-24 speech, finance minister made an announcement about the government’s intent to establish three Centres of Excellence for artificial intelligence (AI) in prestigious educational institutions in India.
Conclusion
- Of late India has made considerable strides in digital technology. It is currently the third-largest startup hub in the world and is home to many leading technology companies. However, India still lags behind China in terms of overall AI capabilities. China is leading the way in terms of research, development and AI applications, including development of intelligent robots, autonomous systems, and intelligent transportation systems. The current trend of AI development suggests that it will determine future economies and national security to influence world politics.
Mains Question
Q. The newest weapons will not be the biggest bombs, tanks or missiles but AI-powered applications and devices which will be used to wage and win wars. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Election Commission
Mains level: Executive and judiciary, Election Commission, appointments and issues
Central Idea
- The Supreme Court of India (SC) remains the most powerful centre of political power in the country at a time when almost every political issue is a matter of adjudication before the Court. A neutral body for the selection of the Chief Election Commissioner (CEC) and other Election Commissioners was the principal relief sought in Anoop Baranwal v. Union of India, which has been granted by the Court as per Thursday’s verdict. The judgment revives the era of judicial activism.
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Anoop Baranwal v. Union of India: The chronology
- PIL: Current system of appointing Election Commissioners is unconstitutional: In January 2015, Anoop Baranwal filed a PIL on the ground that the current system for appointing members of the Election Commission of India (ECI) is unconstitutional. Currently, the Executive enjoys the power to make appointments.
- Pleads for Independent system: The PIL pleads for the Court to issue directions to set up an independent, Collegium-like system for ECI appointments.
- Article 324:
- Article 324 specifies that while the Chief Election Commissioner and Election Commissioners will be appointed by the President, this is subject to Parliamentary law (if such law exists).
- While this provision places an expectation on Parliament to draft a relevant a law, it has not done so up until now. In the absence of such a law, the President has been making appointments as per the recommendations of the Prime Minister.
- Union government’s defence: The Union has defended the current mechanism of appointments, citing the honest record of all past Chief Commissioners.
- Urged court not to intervene: It has urged the Court to not intervene, submitting that the matter falls within the executive domain.
- Recent verdict: The Supreme Court held that a committee comprising the Prime Minister, the Leader of the Opposition and the Chief Justice of India will advise the President on appointments to the Election Commission of India until Parliament enacts a law on the subject.
- The bone of contention: Petitioners argued that as per Article 324(2), CEC and ECs appointments must be based on a law, but no law was enacted. Taking advantage of this scenario, the dispensation at the Centre chooses the CEC and ECs, who are often seen to act in tune with those in power and those who select them. Therefore, the petitioners pleaded for an independent body for appointments.
- Immunity for CEC and Susceptibility of ECs: Article 324(5) provides immunity to CEC but not to other ECs. CEC can only be removed like a Supreme Court judge. Other ECs may be more susceptible to the executive due to lack of security of tenure.
- CEC and EC’s autonomy is linked to their selection process. In an electoral autocracy, executive control undermines fair elections.
Back to Basics: What is judicial activism and judicial overreach?
- Judicial Review: It is the process by which a court reviews the constitutionality of a statue or the application of a statute, and rules either for it or against it on that basis.
- Judicial Activism: It is the view that courts make political rather than legal decisions to further some agenda, rather than strictly reviewing the legality of a law under the letter of the law and prior precedent. It refers to the process in which judiciary steps into the shoes of legislature and comes up with new rules and regulations, which the legislature ought to have done earlier.
- Judicial Overreach: It refers to an extreme form of judicial activism where arbitrary, unreasonable and frequent interventions are made by judiciary into the legislature’s domain, often with the intention of disrupting the balance of powers between executive, legislature and judiciary.
Supreme court’s Judgement: A great leap
- Great leap towards a sustainable democracy: An independent committee consisting of the prime minister, leader of the opposition in the Lok Sabha or the leader of the largest party in opposition and the Chief Justice of India for selecting the CEC is a great leap towards a sustainable democracy.
- Total Independence: The far-reaching verdict also means the Election Commission will have an independent secretariat, rule-making powers, an independent budget, and equal protection from impeachment.
- Bench remarks: Democracy can succeed only if all stakeholders work on it to maintain the purity of the election process, so as to reflect the will of the people.
Conclusion
- The recent SC verdict regarding the selection of the commission is not a cure-all solution for electoral democracy. However, it corrects an unjust method of selection and significantly improves the legitimacy of the process.
Mains Question
Q. A Constitution Bench of the Supreme Court has ordered that the election commissioners will be appointed on the advice of a committee. Discuss what led to this judgment?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: South Asian region
Mains level: South Asia, Human capital, economic growth and challenges
Central Idea
- The last few years have ushered in a harsh new reality where crises are the norm rather than the exception. Pandemics, economic slumps and extreme weather events were once tail-end risks, but all three have hit South Asia in rapid succession since 2020. To strengthen resilience and protect the well-being of future generations, governments across South Asia need to take urgent policy action and invest in human capital.
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South Asia Overview
- Countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
- Population: The region has a total population of over 1.8 billion people, making it the most populous region in the world.
- Geography: South Asia has a diverse geography, with mountain ranges such as the Himalayas and Hindu Kush, major rivers like the Ganges, Indus, and Brahmaputra, and coastal areas along the Arabian Sea, Bay of Bengal, and Indian Ocean.
- Economy: India is the largest economy in the region, accounting for more than 70% of the region’s total GDP. Agriculture is a major employer in most countries, with rice and wheat being staple crops. The manufacturing sector is also a significant contributor to the region’s economy, with textiles, garments, and leather products being major exports
- Climate: The climate of South Asia is varied, with the monsoon season bringing heavy rainfall to much of the region and causing flooding in some areas. The region’s geography and size also result in varying climate patterns. In general, the region experiences hot and humid summers and mild winters.
- Climate Change Risks: Climate change poses significant risks to the region, with some areas, such as the Maldives, at risk of sea level rise. Other risks include increased frequency and severity of extreme weather events, such as floods and droughts. The region is also vulnerable to the impacts of climate change on health, including increased incidence of heat-related illness and infectious diseases.
- Biodiversity and Environmental Threats:
- South Asia is home to several biodiversity hotspots, such as the Western Ghats in India and the Eastern Himalayas.
- However, the region faces significant environmental threats, such as deforestation, air and water pollution, and climate change.
- Deforestation is a major problem in the region, with logging and land use change leading to habitat destruction and loss of biodiversity.
An underutilized asset of South Asia: Analysis
- South Asia’s people are its biggest asset but remain wastefully underutilized:
- With nearly half its population under the age of 24 and over one million young people set to enter the labour force every month until 2030, the region could reap an enviably high demographic dividend.
- Stunting one of the significant challenges: South Asia is also home to over one third of the world’s stunted children. And a child born in the region today can, by the age of 18, expect to attain only 48% of their full productive potential.
- Governments spending on Health and education: South Asian governments on average spend just 1% of GDP on health and 2.5% on education. In comparison, the global average is 5.9% on health and 3.7% on education.
- COVID-19 pandemic, a blow to regions human capital: The COVID-19 pandemic, which pushed an additional 35 million people across South Asia into extreme poverty, dealt an unprecedented blow to the region’s human capital. Among its most woeful impacts is a rise in learning poverty, or the inability to read and understand a simple text by age 10. Ineffective remote instruction, during the pandemic increased South Asia’s learning poverty from 60% to 78%.
- The poorest and most vulnerable people fell further behind: For example, in Bangladesh, the poorest students lost 50% more in terms of learning than the richest students. Several countries still show little to no signs of recovery, and South Asia’s students could lose up to 14.4% of their future earnings.
- Affordable education: Recent evidence suggests that even simple and low-cost education programmes can lead to sizable gains in skills.
- For instance:
- In Bangladesh attending a year of additional pre-school through two-hour sessions significantly improved literacy, numeracy, and social-development scores.
- In Tamil Nadu, six months of extra remedial classes after school helped students catch up on about two-thirds of lost learning linked to 18 months of school closures.
- In Nepal, government teachers ran a phone tutoring programme that helped increase students’ foundational numeracy by 30%.
- Robust systems for crisis management: The need for countries to have robust systems in place to support individuals and families during times of crisis. Such systems, which can include social safety nets, health care, and education programs, can help to mitigate the impact of crises like the pandemic, protect vulnerable populations, and promote resilience. By investing in these systems before a crisis strikes, countries can better prepare themselves to respond to the challenges that may arise.
- Use data and technology: Effective systems are needed to respond to crises quickly and maintain vital services like healthcare and education. Coordination across sectors is important. Data and technology play a crucial role in the delivery of services, human development systems should ensure they are effectively used.
World Bank study: Interdependence of health, education and skills for human development
- A new World Bank study, Collapse and Recovery: how COVID eroded human capital and what to do about it, analyses the pandemic’s impacts on young people, stresses the multi-dimensional and complementary nature of human development.
- The health, education, and skills people acquire at various stages of their lives, build and depend on each other.
- To be effective, human development systems must recognise and exploit these overlapping connections. In other words, they should be agile, resilient and adaptive.
Conclusion
- The road ahead for South Asia is rocky. The next crisis may be just around the corner. A robust human development system would not only mitigate the damage but also help ensure lives and livelihoods are protected. It could provide the resilience South Asia needs to prosper in an increasingly volatile world. While the outlook is grim, it is important to remember that well-designed and implemented interventions can make a difference if governments act fast.
Mains question
Q. South Asia possesses remarkable human capital, but it remains underutilized and has been further impacted by the COVID-19 pandemic. Discuss and suggest what can be done to address the issues?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Election Commissioner, ECI
Mains level: Read the attached story
Central idea: The Supreme Court has directed the central government to form a permanent selection committee consisting of consist of the Prime Minister, Leader of the Opposition, and the Chief Justice of India or his nominee to recommend the appointment of Election Commissioners.
Supreme Court Ruling
- The Supreme Court ruled that the appointment of the CEC should be made through a transparent and participatory process.
- It directed the government to set up a permanent selection committee to recommend names for the appointment of the CEC.
- The committee will consist of the Prime Minister, Leader of Opposition, and Chief Justice of India or his nominee.
- The court emphasized that the appointment process should ensure the independence of the Election Commission and be free from executive interference.
Why such move?
- The ruling will bring more transparency and accountability to the appointment process of the CEC.
- It will prevent any undue influence by the ruling government in the appointment of the CEC.
- The ruling also reinforces the importance of an independent Election Commission in ensuring the fairness of the democratic process in India.
Why did the SC debate the issue?
- In 2015, a PIL was filed challenging the constitutional validity of the practice of the Centre appointing members of the Election Commission.
- In October 2018, a two-judge bench of the SC referred the case to a larger bench since it would require a close examination of Article 324 of the Constitution.
What is the challenge?
Article 324(2) states that the President appoints the Chief Election Commissioner and other Election Commissioners, subject to any law made by Parliament.
- Absence of law: The crux of the challenge is that since there is no law made by Parliament on this issue.
- Urge for judicial intervention: The Court must step in to fill the constitutional vacuum, urges the PIL.
- Question of executive non-interference: This examination also leads to the larger question of separation of powers and if the judiciary is overstepping its role in filling this gap in the law.
About Election Commission of India
- The ECI is a constitutional authority whose responsibilities and powers are prescribed in the Constitution of India under Article 324.
- In the performance of its functions, the Election Commission is insulated from executive interference.
- It is the Commission that decides the election schedules for the conduct of elections, whether general elections or by-elections.
- ECI decides on the location of polling stations, assignment of voters to the polling stations, location of counting centres, arrangements to be made in and around polling stations and counting centres and all allied matters.
Litigations against EC
- The decisions of the Commission can be challenged in the High Court and the Supreme Court of India by appropriate petitions.
- By long-standing convention and several judicial pronouncements, once the actual process of elections has started, the judiciary does not intervene in the actual conduct of the polls.
Why is EC under lens these days?
- Executive interference: ECs are expected to maintain distance from the executive — a constitutional safeguard to insulate the commission from external pressure and allow it to continue as an independent authority.
- Violating official channels: The EC’s communication with the Government on election matters is through the bureaucracy — either with its administrative ministry — the Law Ministry or the Home Ministry.
- Breach of protocol: The Law Ministry spells the fine print on law for the country and is expected not to breach the constitutional safeguard provided to the commission to ensure its autonomy.
Recent incidence of criticisms
Ans. Partiality in Elections
- Over the last couple of years, several actions and omissions of the commission have come in for criticism.
- Nearly 66 former bureaucrats in a letter addressed to the President, expressed their concern over the working of the Election Commission.
- They felt was suffering from a credibility crisis, citing various violations of the model code of conduct during the 2019 Lok Sabha Elections.
Importance of ECI for India
- Conduction of Election: The ECI has been successfully conducting national as well as state elections since 1952.
- Electoral participation: In recent years, however, the Commission has started to play a more active role to ensure greater participation of people.
- Discipline of political parties: It had gone to the extent of disciplining the political parties with a threat of derecognizing if the parties failed in maintaining inner-party democracy.
- Upholds federalism: It upholds the values enshrined in the Constitution viz, equality,
equity, impartiality, independence; and rule of law in superintendence, direction, and control over electoral governance.
- Free and fair elections: It conducts elections with the highest standard of credibility, freeness, fairness, transparency, integrity, accountability, autonomy and professionalism.
Issues with ECI
- Flaws in the composition: The Constitution doesn’t prescribe qualifications for members of the EC. They are not debarred from future appointments after retiring or resigning.
- No security of tenure: Election commissioners aren’t constitutionally protected with the security of tenure.
- Partisan role: The EC has come under the scanner like never before, with increasing incidents of breach of the Model Code of Conduct in the 2019 general elections.
- Political favor: The opposition alleged that the ECI was favoring the ruling party by giving a clean chit to the model code of conduct violations made by the PM.
- Non-competence: Increased violence and electoral malpractices under influence of money have resulted in political criminalization, which ECI is unable to arrest.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FCRA
Mains level: Foreign funding of NGOs
Union Home Ministry suspended the Foreign Contribution Regulation Act (FCRA) licence of the Centre for Policy Research (CPR).
About CPR
- The CPR was established in 1973 as a think tank with the mission to contribute to a more robust public discourse about the issues that impact life in India.
- Its headquarters is located in Chanakyapuri, New Delhi.
- It is a non-profit, non-partisan, independent institution dedicated to conducting research that contributes to high quality scholarship, better policies.
- Over the years it has cultivated a reputation as one of the country’s premier public policy think tanks.
Why was its licence suspended?
- The CPR allegedly received foreign funds in violation of the FCRA.
What is FCRA?
- The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security.
- First enacted in 1976, it was amended in 2010 when a slew of new measures was adopted to regulate foreign donations.
- The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations.
- It is mandatory for all such NGOs to register themselves under the FCRA.
- The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.
Why was FCRA enacted?
- The FCRA sought to consolidate the acceptance and utilisation of foreign contribution or foreign hospitality by individuals, associations or companies.
- It sought to prohibit such contributions from being used for activities detrimental to national interest.
What was the recent Amendment?
- The FCRA was amended in September 2020 to introduce some new restrictions.
- The Government says it did so because it found that many recipients were wanting in compliance with provisions relating to filing of annual returns and maintenance of accounts.
- Many did not utilise the funds received for the intended objectives.
- It claimed that the annual inflow as foreign contributions almost doubled between 2010 and 2019.
- The FCRA registration of 19,000 organisations was cancelled and, in some cases, prosecution was also initiated.
How has the law changed?
There are at least three major changes that NGOs find too restrictive.
- Prohibition of fund transfer: An amendment to Section 7 of the Act completely prohibits the transfer of foreign funds received by an organisation to any other individual or association.
- Directed and single bank account: Another amendment mandates that every person (or association) granted a certificate or prior permission to receive overseas funds must open an FCRA bank account in a designated branch of the SBI in New Delhi.
- Utilization of funds: All foreign funds should be received only in this account and none other. However, the recipients are allowed to open another FCRA bank account in any scheduled bank for utilisation.
- Shared information: The designated bank will inform authorities about any foreign remittance with details about its source and the manner in which it was received.
- Aadhaar mandate: In addition, the Government is also authorised to take the Aadhaar numbers of all the key functionaries of any organisation that applies for FCRA registration or for prior approval for receiving foreign funds.
- Cap on administrative expenditure: Another change is that the portion of the receipts allowed as administrative expenditure has been reduced from 50% to 20%.
What is the criticism against these changes?
- Arbitrary restrictions: NGOs questioning the law consider the prohibition on transfer arbitrary and too heavy a restriction.
- Non-sharing of funds: One of its consequences is that recipients cannot fund other organisations. When foreign help is received as material, it becomes impossible to share the aid.
- Irrationality of designated bank accounts: There is no rational link between designating a particular branch of a bank with the objective of preserving national interest.
- Un-ease of operation: Due to Delhi based bank account, it is also inconvenient as the NGOS might be operating elsewhere.
- Illogical narrative: ‘National security’ cannot be cited as a reason without adequate justification as observed by the Supreme Court in Pegasus Case.
What does the Government say?
- Zero tolerance against intervention: The amendments were necessary to prevent foreign state and non-state actors from interfering with the country’s polity and internal matters.
- Diversion of foreign funds: The changes are also needed to prevent malpractices by NGOs and diversion of foreign funds.
- Fund flow monitoring: The provision of having one designated bank for receiving foreign funds is aimed at making it easier to monitor the flow of funds.
- Ease of operation: The Government clarified that there was no need for anyone to come to Delhi to open the account as it can be done remotely.
Supreme Court’s observation
- The apex court reasoned that an unbridled inflow of foreign funds may destabilise the sovereignty of the nation.
- The petitioners have argued that the amendments suffered from the “vice of ambiguity, over-breadth or over-governance” and violated their fundamental rights.
- But the court countered that the amendments only provide a strict regulatory framework to moderate the inflow of foreign funds into the country.
- The free and uncontrolled inflow of foreign funds has the potential to impact the socio-economic structure and polity of the country.
- No one can be heard to claim a vested right to accept foreign donations, much less an absolute right, said the verdict.
Supreme Court’s assessment of Foreign Funds
- Philosophically, foreign contribution (donation) is akin to gratifying intoxicant replete with medicinal properties and may work like nectar.
- However, it serves as medicine so long as it is consumed (utilised) moderately and discreetly, for serving the larger cause of humanity.
- Otherwise, this artifice has the capability of inflicting pain, suffering and turmoil as being caused by the toxic substance (potent tool) — across the nation.
Way forward
- The court said charity could be found at home. NGOs could look within the country for donors.
- Fundamental rights have to give way in the larger public interest to the need to insulate the democratic polity from the “adverse influence of foreign contributions”.
- The third-world countries may welcome foreign donations, but it is open to a nation, which is committed and enduring to be self-reliant.
- An unregulated inflow of foreign donations would only indicate that the government was incapable of looking after its own affairs and needs of its citizens.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Academic Freedon
Mains level: State of higher education in India
India’s academic freedom index is in the bottom 30 percent among 179 countries, according to a new report.
Academic Freedom Index Update, 2023
- The report was a collaborative effort of 2,917 country experts worldwide.
- It was co-ordinated by Swedish think tank V-Dem Institute and the Institute of Political Science at the Friedrich Alexander University in Germany.
- It identified 22 countries – including India, China, the United States and Mexico – where it said universities and scholars experience significantly less academic freedom today than they did ten years ago.
- The index score measures five indicators-
- Freedom to research and teach
- Freedom of academic exchange and dissemination,
- Institutional autonomy of universities
- Freedom of academic and cultural expression and campus integrity
- Absence of security infringements and surveillance on campus.
What one means by academic freedom?
- Academic freedom refers to the independence and autonomy that scholars and researchers have in pursuing their academic work, without fear of censorship, retaliation, or repression from the government or other entities.
- It includes the freedom to conduct research, publish findings, and express opinions and ideas, without interference or pressure from external forces.
- It is considered a cornerstone of higher education and is essential for the advancement of knowledge and the free exchange of ideas.
India’s performance
- India is ranked among the bottom 30% with an index score of less than 0.4 among the 179 countries assessed by the researchers.
- On a scale of 0 (low) to 1 (high), India scored 0.38, lower than Pakistan’s 0.43 and the United States’ 0.79, says the report. LOL!
- The report has ranked the United States among the top 50% of countries with an index score just below 0.8. China has been ranked among the bottom 10% with a score of less than 0.1.
- The report said that academic freedom in India began to decline in 2009 with a drop in university autonomy, followed by “a sharp downturn in all indicators” from 2013.
Reasons for such poor ratings
- A lack of a legal framework to protect academic freedom has enabled attacks on academic freedom.
- The report sees there is notable pressure on the institutional dimensions of academic freedom — institutional autonomy and campus integrity.
- The report sees regime change in India since as a declining trend in the country’s academic freedom.
- All such reports are being increasingly publicized ahead of India’s general elections in 2024.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CITES, its appendices
Mains level: Read the attached story
March 3 marks the 50th anniversary of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) in 1973.
Why is World Wildlife Day marked?
- March 3 marks the anniversary of CITES’ establishment.
- CITES is considered a landmark agreement on conservation that focuses on ensuring the sustainability of endangered species.
- In 2013, the United Nations General Assembly (UNGA) proclaimed March 3 as the UN World Wildlife Day to celebrate and raise awareness of protecting the world’s wild animals and plants.
- This was as the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) was signed in 1973 on this day.
What is the CITES?
- CITES stands for the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
- It is as an international agreement aimed at ensuring “that international trade in specimens of wild animals and plants does not threaten their survival”.
- It was drafted after a resolution was adopted at a meeting of the members of the International Union for Conservation of Nature (IUCN) in 1963.
- It entered into force on July 1, 1975, and now has 183 parties.
- The Convention is legally binding on the Parties in the sense that they are committed to implementing it; however, it does not take the place of national laws.
- India is a signatory to and has also ratified CITES convention in 1976.
CITES Appendices
- CITES works by subjecting international trade in specimens of selected species to certain controls.
- All import, export, re-exports and introduction from the sea of species covered by the convention has to be authorized through a licensing system.
- It has three appendices:
- Appendix I includes species threatened with extinction. Trade-in specimens of these species are permitted only in exceptional circumstances.
- Appendix II provides a lower level of protection.
- Appendix III contains species that are protected in at least one country, which has asked other CITES Parties for assistance in controlling trade.
A critical assessment
- Having wildlife allowed to be traded further legitimises their movement and increases the possibility of their illegal trade.
- Nearly two-thirds of cases, CITES protections lag after a species is determined to be threatened by international trade a/c to NatGeo.
- For example, while pangolins were finally added to Appendix I in 2017, an estimated million were trafficked between 2000 and 2013.
- Its laxity has been questioned, on matters such as the ivory trade being allowed at times despite the convention banning it in 1989.
Conclusion
- CITES needs to evolve to address new challenges and work more closely with other international agreements and initiatives.
- There is a need of continued efforts to protect wildlife and biodiversity and the need for international cooperation and collaboration to achieve this goal.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Loan-Loss Provision
Mains level: NPA crisis
The Reserve Bank of India is moving closer towards ring-fencing the banking system from credit losses as it proposes to move to provision on the principles of ‘expected losses’ from ‘incurred losses. ‘
What is a Loan-Loss Provision?
- The RBI defines a loan loss provision as an expense that banks set aside for defaulted loans.
- Banks set aside a portion of the expected loan repayments from all loans in their portfolio to cover the losses either completely or partially.
- In the event of a loss, instead of taking a loss in its cash flows, the bank can use its loan loss reserves to cover the loss.
- The level of loan loss provision is determined based on the level expected to protect the safety and soundness of the bank.
What is Expected Credit Loss (ECL) regime?
- The Expected Credit Loss (ECL) regime is a new accounting standard that was introduced by the International Financial Reporting Standards (IFRS) in response to the global financial crisis of 2008.
- The ECL regime requires banks and other financial institutions to estimate and report the expected losses from their loan portfolios over the lifetime of the loans.
- Under the ECL regime, financial institutions must assess the credit risk associated with each loan and estimate the expected losses that will result from default or other credit events.
- These expected losses must be recognized in the financial institution’s accounts and reported to investors and other stakeholders.
- Under this practice, a bank is required to estimate expected credit losses based on forward-looking estimations rather than wait for credit losses to be actually incurred before making corresponding loss provisions.
Benefits of the ECL regime
- ECL will result in excess provisions as compared to a shortfall in provisions, as seen in the incurred loss approach.
- It will further enhance the resilience of the banking system in line with globally accepted norms.
Issues with this regime
- It requires banks to provide for losses that have already occurred or been incurred.
- The delay in recognizing loan losses resulted in banks having to make higher levels of provisions which affected the bank’s capital.
- This affected banks’ resilience and posed systemic risks.
- The delays in recognizing loan losses overstated the income generated by the banks, which, coupled with dividend payouts, impacted their capital base.
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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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