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Foreign Policy Watch: India-United States

Fateful Triangle China,USA and India and Changing World Order

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: International relations.India-china, India-USA

China

Context

  • America’s national security strategy issued by the Joe Biden Administration last week and the Chinese Communist Party’s 20th Congress this week promise to reshape the geopolitics of Asia and the Indo-Pacific.

Historical background of USA-CHINA

  • Context of World War II: Asia has seen multiple phases in the US-China relationship. In the second half of the 19th century, American missionaries began to arrive in China and began to generate empathy for the nation. During World War II, Washington backed Chinese nationalists in their fight against Japanese occupation.
  • US efforts to isolation China: The US tried to isolate China from 1949 when the communists prevailed over the nationalists.
  • Cooperation to counter Soviet: The 1970’s saw the US and communist China come together to counter the Soviet Union.
  • Multiple Economic engagement: The 1980s saw the beginning of an economic engagement that turned into a huge commercial and technological partnership from the 1990s.

China

What is the USA’s assumption and China’s ambition?

  • China as responsible stakeholder: The US establishment dismissed the idea of China as potential threat and bet that Beijing could become a “responsible stakeholder” in the world order.
  • Democratization of Chinese society is inevitable: America also believed that China’s growing economic prosperity would inevitably lead to greater democratisation of its society.
  • Visible decline of west: China, however, has steadily moved in the other direction, especially under Xi, who has convinced himself that the West is in terminal decline.
  • China’s ambition to change the world order: Xi is determined to seize this moment to reshape the Asian as well as the global order to suit Chinese interests. At the same time, China has become increasingly repressive at home.
  • Explicit expression of ambition: Xi made no effort to hide China’s new geopolitical ambition nor has he been defensive about his authoritarian rule. This, in turn, bestirred the US into rethinking its China policy in the second decade of the 21st century.

China

How China is asserting itself?

  • Asserting own version of Global order: Beijing, argues that recent history points to the superiority of the Chinese system over the Western one. And it offers its own versions of a global order – economic, political and social. Since the end of the Cold War, ideological arguments had receded into the background but are now back in significant play.
  • China offering model Economic Globalization: China continues to sing praises of the model of economic globalisation that has facilitated Beijing’s rise over the last four decades. But under Xi, China has emphasised the importance of self-reliance in the name of a “dual circulation strategy”.
  • Leveraging world’s dependence for strategic gain: At the same time, Beijing has sought to enhance the world’s dependence on its economy and leverage it for strategic benefit. The profound political backlash against trade and economic cooperation with China in the US led to the questioning of economic globalisation in the Trump years.
  • China building the powerful military: As China became a richer country, it also focused on building a powerful army. Using both the instruments of hard power, China under Xi has actively sought to undermine US alliances in Asia and mount pressure on American forward military presence in Asia.

China

How USA’s policy is changing towards China?

  • Structured policy of rivalry: The traditional soft attitude to China yielded to a more confrontational approach during the Donald Trump presidency. Joe Biden has developed that into a more structured policy of competing with China.
  • Combine challenge of China and Russia: The National Security Strategy of the Trump administration postulated the return of great power rivalry and the need to respond to the challenges presented by Russia and China. Biden’s NATIONAL SECURITY STRATEGY builds on that proposition and identifies China as the more demanding challenge than Russia, despite Moscow’s aggression against Ukraine.
  • China is more capable than Russia: In his foreword to the National security strategy, Biden says “Russia poses an immediate threat to the free and open international system, recklessly flouting the basic laws of the international order today, as its brutal war of aggression against Ukraine has shown.” He names China, on the other hand, as “the only country with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military and technological power to advance that objective”. While the European challenge is real, the Biden Administration now sees the Indo-Pacific as the principal strategic theatre.
  • Projecting China as autocracy against the democracy: The US has sought to locate the conflict with China (and Russia) as a fundamental struggle between “democracies and autocracies”. Recognising the limited enthusiasm for the framing in Asia, the National security strategy now talks of broadening the coalition to include countries that may not be democratic. Beijing, on the other hand, argues that recent history points to the superiority of the Chinese system over the Western one.
  • Building the bilateral alliances: The US is now pushing back. The principal instrument in the US response has been rebuilding the traditional bilateral alliances with Japan and Australia as well as constructing new partnerships with countries like India and developing new regional coalitions.

India’s role in shaping the world order

  • Convergence of National interest wit USA: Today, Indian and American policies are converging. For both Delhi and Washington, Beijing presents the main national challenges.
  • Reducing economic dependence on China: On the economic and technological front, both India and the US are trying to reduce their exposure to China.
  • Keeping independent foreign policy: On the geopolitical front, a US plan to look beyond formal alliances suits Delhi, which is wedded to an independent foreign policy.
  • Opportunity for cooperation: It is never easy to translate abstract convergence into concrete policies. The current churn in Asia provides Delhi and Washington with a historic opportunity to build on the new convergences in the areas of trade, technology, and geopolitics.

 Conclusion

  • changing world order will have short term repercussion on economic front for developing country like India. India has a great opportunity to be the rule maker of new global order rather than just a rule follower. World order of 21st century will revolve around the fateful triangle of India, China and USA.

Mains Question

Q.Why the present world order is challenged by China? What role India can play as rule maker of new World order?

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Waste Management – SWM Rules, EWM Rules, etc

The solution to the E-waste problem lies in scientific recycling

Note4Students

From UPSC perspective, the following things are important :

Prelims level: E-waste applications and impacts

Mains level: E-waste problems, and scientific recycling,advantages and disadvantages

E-wasteContext

  • International E-Waste Day is held on October 14 every year as an opportunity to reflect on the impacts of e-waste. This year’s slogan is ‘Recycle it all, no matter how small!
  • Hoarding of small, unused, dead or broken plug-in and battery-operated products is the focus of this year’s 5th annual International E-Waste Day.

What is mean by E-Waste?

  • E-waste is a popular, informal name for electronic products nearing the end of their “useful life.”Computers, televisions, VCRs, stereos, copiers, and fax machines are common electronic products. Many of these products can be reused, refurbished, or recycled.

Why E-waste is important?

  • Highly valuable metals: E-waste is a rich source of metals such as gold, silver, and copper, which can be recovered and brought back into the production cycle. There is significant economic potential in the efficient recovery of valuable materials in e-waste and can provide income-generating opportunities for both individuals and enterprises.
  • No harm if stored safely: It is said that the electrical and electronic equipment (EEE) after their useful life does not cause any harm to health and the environment if it is stored safely in households/stores. If the end of life EEE (e-waste) is opened-up and unscientific methods are used for extraction of precious and semi-precious material from it, then it causes health risks and damage to the environment.

E-wasteWhy E-waste is hazardous to environment and health?

  • Highly toxic in nature: E-waste can be toxic, is not biodegradable and accumulates in the environment, in the soil, air, water and living things.
  • Adverse effects on health: High levels of contaminants such as lead, mercury, cadmium and arsenic, which can lead to irreversible health effects, including cancers, miscarriages, neurological damage and diminished IQs.etc.
  • Adverse effects on environment: There are problems with toxic materials leaching into the environment. For example, open-air burning and acid baths being used to recover valuable materials from electronic components release toxic materials leaching into the environment.
  • Plastic used in electronics highly Hazardous: Hazardous chemicals such as bromine, antimony and lead are applied to electronics like laptops and music systems as flame retardants. They find their way into food-contact items and other everyday products as the demand for black plastics in consumer products is met partly by sourcing from e-waste.

According to the study conducted by Waste Electrical and Electronic Equipment (WEEE) Forum

  • Non-profit Waste Electrical and Electronic Equipment (WEEE) Forum is an international association of 46 e-waste producer responsibility organizations which started the day in 2018.
  • According WEEE studies: Roughly 5.3 billion mobile/smartphones will drop out of use this year.The electronics would reach a height of around 50,000 km if stacked flat and on top of each other. That’s an eighth of the distance to the moon.
  • WEEE Survey:The forum surveys conducted to reveal why so many households and businesses fail to bring in for repair or recycling. The results were consolidated by the United Nations’ Institute for Training and Research (UNITAR) Sustainable Cycles Programme.
  • Results of WEEE surveys: Of 8,775 European households in six countries, the average household contains 74 e-products. Of 74 average total e-products, 13 are being hoarded. This is the story almost everywhere.The top five hoarded small electronic products were (in order): small electronics and accessories (eg, headphones, remotes), small equipment, small IT equipment (eg, hard drives, routers, keyboards, mice), mobile and smartphones, small food preparation appliances .LED lamps ranked the top of the list of products most likely to be trashed.

E-wasteWhat is the present status of E-waste in India?

  • Statistics: Approximately 8 lakh tonnes per annum of plastic waste is recycled and 1.67 lakh tonnes per annum is co-processed in Cement Kilns, said the government. There are 468 authorised dismantlers/recyclers in 22 states having a processing capacity of 13.85 lakh tonnes of e-waste in the country.
  • The e-waste management rules: The e-Waste (Management) Rules were notified in 2016 which got amended from time to time. So far, the Environment Ministry has notified 21 types of electrical and electronic equipment (EEE) as e-waste
  • No recent studies on the pollution caused by e-waste: In the recent Parliament session, Minister of State for Environment, Forests and Climate Change, Ashwini Kumar Choubey in his reply to Kerala Rajya Sabha member V Sivadasan (CPM) said no study has been carried out by Central Pollution Control Board (CPCB) to assess the damage caused to the environment by e-waste.

Current scenario and issues in E-waste recycling

  • Crude and Scrappage: As of today, some 95% of e-waste is managed by the informal sector which operates under inferior working conditions and relies on crude techniques for dismantling and recycling.
  • Infrastructure lacunae: Another important issue is the lack of sufficient metal processing infrastructure which is why recyclers have to export materials to global smelters.
  • Price competencies: As aggregators are mostly informal, they demand up-front cash payments.
  • Bloomed informal network: The informal network is well-established and rests on social capital ties that PROs have yet to establish and are hence insulated from reaching the viable number of aggregators.
  • Policy failure: Policy changes have tried repeatedly to formalize the sector, but issues of implementation persist on the ground.

E-wasteWay forward

  • Effective design: Since India is highly deficient in precious mineral resources, there is a need for a well-designed, robust and regulated e-waste recovery regime that would generate jobs and wealth.
  • Consumer responsibility: The consumers must responsibly consume the product for its useful life and then weigh between the chances of repair or disposal with utmost consciousness towards the environment.
  • Recyclable products: On the supply side, e-waste can be reduced when producers design electronic products that are safer, and more durable, repairable and recyclable.
  • Reuse: Manufacturers must reuse the recyclable materials and not mine rare elements unnecessarily to meet new production.
  • Commercial recycling: Rather than hoping that informal recyclers become formal it would be more feasible for companies and the state to design programs ensure e-waste easily makes its way to proper recyclers.

Conclusion

  • Concerted efforts are important to generate a momentum of sustained efforts towards increasing disposal through formal and scientific channels and catalyzing sustainable consumption patterns is the need of the hour.

Mains Question

Q.The size and complexity of the e-waste problem are growing at a much quicker rate than the efficacy of strategies to contain it. Discuss the impact of unscientific recycling of E-waste on Environment and human health.

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Direct Benefits Transfers

India’s Direct Benefit Transfer Schemes

Note4Students

From UPSC perspective, the following things are important :

Prelims level: JAM trinity

Mains level: JAM trinity, financial inclusion and Direct Benefit Transfer

Transfer

Context

  • Last week, the International Monetary Fund (IMF) lauded India’s Direct Benefit Transfer (DBT) Scheme as a “logistical marvel” that has reached hundreds of millions of people and specifically benefitted women, the elderly and farmers. Paolo Mauro, Deputy Director in the IMF’s Fiscal Affairs Department, praised the role of technological innovation in achieving this feat.

What is Direct Benefit Transfer(DBT)?

  • With the aim of reforming Government delivery system by re-engineering the existing process in welfare schemes for simpler and faster flow of information/funds and to ensure accurate targeting of the beneficiaries, de-duplication and reduction of fraud Direct Benefit Transfer (DBT) was started on 1st January, 2013.
  • DBT Mission was created in the Planning Commission to act as the nodal point for the implementation of the DBT programmes. The Mission was transferred to the Department of Expenditure in July, 2013 and continued to function till 14.9.2015. To give more impetus, DBT Mission and matters related thereto has been placed in Cabinet Secretariat under Secretary (Co-ordination & PG).

Transfer

Efforts behind the efficient DBT

  • Mission-mode approach for financial inclusion: Government endeavoured to open bank accounts for all households, expanded Aadhaar to all, and scaled up the coverage of banking and telecom services.
  • Public Finance Management System through Aadhar: It evolved the Public Finance Management System and created the Aadhaar Payment Bridge to enable instant money transfers from the government to people’s bank accounts.
  • Participation of various stakeholders for extensive UPI: The Aadhaar-enabled Payment System and Unified Payment Interface further expanded interoperability and private-sector participation.
  • Directly receiving of subsidies: This approach not only allowed all rural and urban households to be uniquely linked under varied government schemes for receiving subsidies directly into their bank accounts but also transferred money with ease.

What is the Present status of DBT?

  • The status of JAM trinity (Jan Dhan Aadhar Mobile)
  • By 2022, more than 135 crore Aadhaar’s have been generated,
  • There are 47 crore beneficiaries under Pradhan Mantri Jan Dhan Yojana,
  • Mobile subscribers number more than 120 crores.
  • Riding on this network, the DBT programme has reached commanding heights towards achieving the government’s vision of “sabka vikas”.
  • Last mile banking through Bank Mitras: 5 lakh Bank Mitras delivering branchless banking services.
  • DBT applicable to government schemes: Becoming the major plank of the government’s agenda of inclusive growth, it has 318 schemes of 53 central ministries spanning across sectors, welfare goals and the vast geography of the country.

Transfer

How benefits are delivered through DBT?

  • DBT in rural areas: In rural Bharat, DBT has allowed the government to provide financial assistance effectively and transparently to farmers with lower transaction costs be it for fertilisers or any of the other schemes including the PM Kisan Samman  Nidhi, PM Fasal Bima Yojana, and PM Krishi Sinchayi Yojana  thus becoming the backbone for supporting the growth of the agricultural economy.
  • DBT in urban area: In urban India, the PM Awas Yojana and LPG Pahal scheme successfully use DBT to transfer funds to eligible beneficiaries.
  • Benefits under MGNAREGA: The benefits received under the Mahatma Gandhi National Rural Employment Guarantee Act and Public Distribution System drive the rural demand-supply chain.
  • Various assistance programmes: Various scholarship schemes and the National Social Assistance Programme use the DBT architecture to provide social security.
  • Scheme for rehabilitation: DBT under rehabilitation programmes such as the Self Employment Scheme for Rehabilitation of Manual Scavengers opens new frontiers that enable social mobility of all sections of society.
  • DBT as last mile support in Pandemic: The efficacy and robustness of the DBT network were witnessed during the pandemic. It aided the government to reach the last mile and support the most deprived in bearing the brunt of the lockdown. From free rations to nearly 80 crore people under the Pradhan Mantri Garib Kalyan Yojana, fund transfers to all women Jan Dhan account holders and support to small vendors under PM-SVANidhi, DBT helped the vulnerable to withstand the shock of the pandemic.

Transfer

What are the reasons for successful DBT schemes?

  • An enabling policy regime: Proactive government initiatives and supportive regulatory administration allowed the private and public sector entities in the financial sector to overcome longstanding challenges of exclusion of a large part of the population.
  • Creation of a dedicated ecosystem: These are essential elements of the pioneering ecosystem created by the government for the aggressive rollout of the ambitious DBT programme, achieving impressive scale in a short span of six years.

Conclusion

  • Direct Benefit Transfer has transformed the welfare aspect of the governance. Going forward digital and financial literacy, robust grievance redressal, enhancing awareness and an empowering innovation system are some of the aspects that would require continued focus. This would play a vital role for India in meeting the diverse needs of its population and ensuring balanced, equitable and inclusive growth.

Mains Question

Q.Enlist the schemes that comes under DBT. How DBT has changed the lives of needy people in urban and rural India?

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Parliament – Sessions, Procedures, Motions, Committees etc

Kerala Governor says he can sack errant Ministers

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Office of the Governor

Mains level: Issues with role of Governor

Kerala Governor has opened the next battlefront against the State government by threatening to remove Ministers from their posts if they continued to lower the dignity of his office.

Why in news?

  • This is for the very first time that any Governor has expressed his displeasure.
  • There has been no occasion so far of a Governor unilaterally removing a minister from the government.

Governor in the parliamentary system

  • The position, role, powers, and conditions of office of the Governor are described in Articles 153-161 of the Constitution.
  • The position of Governor is similar to that of the President at the Union.
  • He is at the head of the state’s executive power, and barring some matters, acts on the advice of the council of ministers, which is responsible, in accordance with the parliamentary system, to the state legislature.

Apolitical nature of his appointment

  • The Governor is appointed by the President (on the advice of the central government) and, therefore, acts as the vital link between the Union and the state governments.
  • The post was envisaged as being apolitical; however, the role of Governors has been a contentious issue in Centre-state relations for decades.
  • The Governor enjoys certain powers such as giving or withholding assent to a Bill passed by the state legislature or determining the time needed for a party to prove its majority.
  • The party must be called first to do so, generally after in a hung Assembly — which have been weaponized by successive central governments against the political opposition.

Is the Governor capable to remove a Minister?

  • Article 164(1) says state “Ministers shall hold office during the pleasure of the Governor”.
  • This is the provision that the Kerala Governor was seemingly alluding to.
  • Article 164(1) deals with the appointment of the Chief Minister and other ministers.
  • While the Governor does not have to seek anyone’s advice while appointing the Chief Minister, he can appoint a minister only on the recommendation of the Chief Minister.
  • The Governor has no power to pick anyone he chooses to make a minister. He can appoint a minister only on the advice of the CM.

Major judicial observation in this regard

Ans.  Shamsher Singh & Anr vs State Of Punjab (1974)

  • The Supreme Court ruled that- the President and Governor exercise their formal constitutional powers only upon and in accordance with the advice of their Ministers save in a few well known exceptional situations.

What were the exception situations referred to?

  • These situations could arise if:
  1. The PM or CM cease to command majority in the House
  2. The government loses majority but refuses to quit office
  3. For the dissolution of the House where an appeal to the country is necessitous.
  • But even in the third scenario, the President or Governor should avoid getting involved in politics and must be advised by his PM/CM who will eventually take the responsibility for the step the court ruled.

What did the founding fathers of the constitution believe?

  • B R Ambedkar said- The Governor under the Constitution has no function which he can discharge by himself; no functions at all.

So what does the “pleasure” of the Governor mean?

  • The Governor can have his pleasure as long as the government enjoys majority in the House.
  • The Governor can withdraw his pleasure only when the government loses majority but refuses to quit.
  • Then he withdraws the pleasure and dismisses it.
  • Without the advice of the Chief Minister, a Governor can neither appoint nor dismiss a minister.
  • That’s the constitutional position.

What maximum can a Governor do?

  • If a minister lowers the dignity of the Governor or his office, as Kerala Governor has alleged, Raj Bhavan can ask the Chief Minister to inquire.
  • If it is found that the minister has defamed or disrespected the Governor, he/ she can ask the Chief Minister to drop the minister.
  • This does not mean the Governor has the right to dismiss the Chief Minister or ministers at will.

Attempts to moralize such situations

(1) National Commission to Review the Working of the Constitution

  • The NCRWC appointed by the Atal Bihari Vajpayee government in 2000 recommended significant changes in the selection of Governors.
  • The Commission suggested that the Governor should be appointed after consultation with the CM of that State.
  • Normally the five year term should be adhered to and removal or transfer of the Governor should be by following a similar procedure as for appointment.

(2) Sarkaria Commission

  • The Sarkaria Commission was set up in 1983 to look into Centre-state relations.
  • It proposed that the Vice President of India and the Speaker of Lok Sabha should be consulted by the Prime Minister in the selection of Governors. (without any logic behind explaining!)

(3) Punchhi Committee

  • The Justice Madan Mohan Punchhi Committee was constituted in 2007 on Centre-state relations.
  • It proposed in its report submitted in March 2010 that a committee comprising the PM, Home Minister, Vice President, Speaker, and the concerned Chief Minister should choose the Governor.
  • The Punchhi Committee recommended deleting the “Doctrine of Pleasure” from the Constitution.
  • However, it backed the right of the Governor to sanction the prosecution of ministers against the advice of the state government.
  • It also argued for a provision for the impeachment of the Governor by the state legislature.

 

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Solar Energy – JNNSM, Solar Cities, Solar Pumps, etc.

International Solar Alliance approves funding mechanism

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ISA

Mains level: Solar energy

To bolster investments in solar power projects, the International Solar Alliance (ISA), in its General Assembly approved the ‘Solar Facility’, a payment guarantee mechanism.

What is Solar Facility?

  • It is expected to stimulate investments into solar projects through two financial components:
  1. Solar Payment Guarantee Fund and
  2. Solar Insurance Fund
  • The thrust of the facility is to attract private capital to flow into “underserved markets” in Africa.
  • The ISA would aim to crowdsource investments from various donors across the globe and proposed projects in Africa would be able to purchase payment guarantees or partial insurance premium from these funds.

Why such move?

  • ISA’s mission is to unlock US $1 trillion (₹80 lakh crore) of investments in solar power by 2030 while reducing cost of the technology and its financing.

What is International Solar Alliance (ISA)?

  • The ISA is an alliance of more than 121 countries, most of them being sunshine countries, which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn.
  • It is headquartered in Gurugram, India.
  • The primary objective of the alliance is to work for efficient exploitation of solar energy to reduce dependence on fossil fuels.
  • The alliance is a treaty-based inter-governmental organization.
  • The initiative was launched by PM Modi at the India Africa Summit and a meeting of member countries ahead of the 2015 United Nations Climate Change Conference in Paris in November 2015.

Objectives of the ISA

  • To mobilize investments of more than USD 1000 billion by 2030
  • To take coordinated action for better harmonization, aggregation of demand, risk and resources, for promoting solar finance, solar technologies, innovation, R&D, capacity building etc.
  • Reduce the cost of finance to increase investments in solar energy in member countries
  • Scale up applications of solar technologies in member countries
  • Facilitate collaborative research and development (R&D) activities in solar energy technologies among member countries
  • Promote a common cyber platform for networking, cooperation and exchange of ideas among member countries

What does ISA formation signify?

  • Climate action commitment: It symbolizes about the sincerity of the developing nations towards their concern about climate change and to switch to a low-carbon growth path.
  • Clean energy: India’s pledge to the Paris summit offered to bring 40% of its electricity generation capacity from non-fossil sources (renewable, large hydro, and nuclear) by 2030.
  • Global electrification: India has pledged to let solar energy reach to the most unconnected villages and communities and also towards creating a clean planet.
  • Global cooperation: It is based on world cooperation irrespective of global boundaries.
  • India’s Soft power: For India, possible additional benefits from the alliance can be a strengthening of ties with the major African countries and increasing goodwill for India among them.

Key initiatives

[A] Global Solar Atlas

  • ISA alliance has partnered with World Bank to launch Global Solar Atlas at an ISA event at the World Future Energy Summit in Abu Dhabi.
  • Global Solar Atlas is a free online tool that displays annual average solar power potential at any location in the world and thus identify potential sites for solar power generation.

[B] OSOWOG Initiative

  • Under the ISA project, India envisaged having an interconnected power transmission grid across nations for the supply of clean energy.
  • The vision behind the OSOWOG mantra is ‘The Sun Never Sets’ and is a constant at some geographical location, globally, at any given point of time.
  • With India at the fulcrum, the solar spectrum can easily be divided into two broad zones viz. far East which would include countries like Myanmar, Vietnam, Thailand, Lao, Cambodia etc. and far West which would cover the Middle East and the Africa Region.

Implementation

  • The OSOWOG would have three phases.
  1. Phase I: Middle East, South Asia and South-East Asia would be interconnected
  2. Phase II: Solar and other renewable energy resources rich regions would be interconnected
  3. Phase III: Global interconnection of the power transmission grid to achieve the One Sun One World One Grid vision

Benefits of the project

  • Attracting investment: An interconnected grid would help all the participating entities in attracting investments in renewable energy sources as well as utilizing skills, technology and finances.
  • Poverty alleviation: Resulting economic benefits would positively impact poverty alleviation and support in mitigating water, sanitation, food and other socio-economic challenges.
  • Reduced project cost: The proposed integration would lead to reduced project costs, higher efficiencies and increased asset utilization for all the participating entities.

Various challenges

  • Lack of Funding: Providing the money for promoting solar electricity among the members is a challenge. The Alliance has very little money of its own.
  • Expensive implementation: The cost of power has two components. The variable cost is the payment made for the numbers of units of electricity purchased. In addition, the buyer is required to pay a certain amount towards the fixed cost of solar supply.
  • Battery-based Storage: Solar electricity is available only during the day when the sun shines. Thus, the storage of electricity is a difficult task.
  • Cross-border transmission: Solar electricity has to overcome the roadblocks of transmission.  Cross-border transmission of electricity requires the establishment of transmission lines from the producer to the consumer country.
  • Peak hour load:  The demand for electricity, however, is more during the morning and evening which are called “peak hours”. But it can be produced when the sun is shining.
  • Climate change: Sudden overcast and rainfall in many parts of the tropics has been a major issues these days. Such weather hampers solar energy production
  • Desired global consensus: It is hindered with the issues of intricate geopolitics, unfavourable economics, unwarranted globalisation and undue centralization that act against the concept.
  • Highly ambitious: In a nation like India, it took us this long to connect all the regions of the country through a national grid and we are talking about ‘one world, one grid’.

Way forward

  • ISA should focus on its core goals such as- aggregating demand, tariff, technical collaborations, and financial assistance for achieving its target.
  • It further needs to ensure that solar benefits are clear and tangible to users beyond its cost ambitions.
  • ISA should demonstrate business models that are viable for users, suppliers and financiers.
  • Further, the alliance should support member countries in implementing policies to expedite these business models.
  • Geo-politically, this is being touted as a clever strategy however financially and technology-wise, this has to make sense.

 

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RBI Notifications

What are Foreign Currency Non-Resident (FCNR) deposits?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: FCNR Deposits

Mains level: India's forex reserves and its implications

The RBI’s 2013 FCNR scheme to buffer the rupee against steep declines and rebuild foreign exchange reserves is unlikely to prove fruitful in the current crisis as economic fundamentals are different.

What are FCNR deposits?

  • Back in 2013, the RBI had offered to swap the U.S. dollars banks had raised via foreign currency non-resident (FCNR) deposits or foreign currency funding for rupees at concessional rates.
  • A FCNR is a bank account for NRIs to maintain a Fixed Deposit account in India.
  • This account allows one as an NRI to save money earned in the currency form of the country you’ve originally earned the money from.
  • FCNR deposits can hold currencies like US Dollars, Pounds Sterling, Euro, Japanese Yen, Australian Dollars and Canadian Dollars.
  • Interest on such deposits is exempt for income tax.

How do they operate?

  • These deposit accounts are a term deposit account, not savings.
  • Once can withdraw your money before the date of maturity, and there will be no charges, but the interest will not be paid until after a year is complete.

Benefits offered

  • FCNRs are just like what FDs are for resident Indians, except in foreign currency.
  • They work as great investment options for NRIs to invest in the country for a start, before looking for other avenues in investments on the stock market.
  • Because the money is being held in those currencies, the risk of exchange rate fluctuations is eliminated.

Why in news?

  • Forex reserves have tumbled about $110 billion from a peak of $642 billion in September last year.
  • A significant reason behind this is RBI’s currency market intervention.

 

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International Space Agencies – Missions and Discoveries

The illusion of being faster than light: how a star problem was solved

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Speed of light, Neutron stars, various terms mentioned

Mains level: Not Much

light

Scientists have spotted something that appeared to be moving 7 times faster than the Speed of Light in a supernova like event.

What is the news?

  • In 2017, astrophysicists observed an unusual feat among the stars.
  • The Laser Interferometer Gravitational-Wave (LIGO) observatories recorded a signal which indicated that two massive and dense stellar bodies had merged to form a third body, likely a black hole.
  • An unusual jet of matter was observed that gave an illusion of travelling faster than light.

Can matter move faster than Light?

  • From the data, it appeared the jets of matter were moving seven times faster than light.
  • The researchers explain the reason behind the discrepancy is due to something called superluminal motion.
  • Since the jet of matter reaches Earth at the speed of light, the light it emits at later points has a relatively shorter distance, making it appear faster than it actually is.
  • After more calculations, astronomers found the real speed to be at least 99.7 percent of the speed of light (3 × 10^8 m / s).

Crossing the speed of light: An illusion

  • The data of same incident has been recorded by the Global Astrometric Interferometer for Astrophysics (GAIA) spacecraft and Hubble (James Web) Space Telescope
  • Using it, scientists confirmed that the above picture is correct.

How to assess it?

  • Scientists have also measured more accurately a factor called the Lorenz factor which scales with the actual speed of the particles in the jet.
  • Unlike earlier estimates which placed this factor at about 4, the present paper estimates this factor to be over 40.
  • This is because they measure the speed of the relativistic jet to be close to 9997c, where “c” is the speed of light.

How are they observed?

  • Source is clearly as massive neutron stars merging to give a black hole and throwing off relativistic jets of particles in the process.

Merging neutron stars: Faking to cross speed of light

  • Neutron stars are stellar corpses, left behind after a star has undergone a supernova explosion and reached the end of its lifetime.
  • They are extremely dense, containing more mass than the sun in a sphere that is a few tens of kilometre wide.
  • The observation of particles moving at seven times the speed of light is an illusion.
  • This happens in cases where a source moves (towards us) with a velocity that is very close to light’s velocity.
  • This has been seen in many active galactic nuclei — galaxy centres that harbour black holes — and binary star systems within our galaxy, where one of the stars is a black hole.
  • Mostly, black holes are responsible for producing such fast-moving material.

How is this illusion created?

  • Normally, if one were making these measurements from earth-based telescopes, it would require data from radio telescopes spaced apart by intercontinental distances.
  • This technique is called Very Long Baseline Interferometry (VLBI) and was used in the earlier papers.

Significance of this study

  • The significance of the paper is that now, we have learnt that neutron star mergers can result in material moving with speeds as high as 0.9997c.
  • Earlier results using Very Long Baseline Interferometry had pegged this value at about 0.938c.
  • And with the new results this lower limit has been improved.
  • Even earlier, with VLBI, it was understood that it was a neutron-star merger that produced such ultra-relativistic material.

 

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GI(Geographical Indicator) Tags

Japan seeks GI tag for Nihonshu, an alcoholic beverage

Note4Students

From UPSC perspective, the following things are important :

Prelims level: GI Tags in news

Mains level: Not Much

nihonshu

The Embassy of Japan, New Delhi, has filed an application seeking Geographical Indication (GI) tag for nihonshu/Japanese sake, an alcoholic beverage.

Why in news?

  • It is learnt that this is the first time a product from Japan has filed for a tag at the Geographical Indication Registry in Chennai.

What is Nihonshu?

  • Nihonshu is regarded as a special and valuable beverage made from fermenting rice.
  • People traditionally drink nihonshu on special occasions, such as festivals, weddings or funerals, but it is also consumed on a daily basis.
  • Thus, it is an integral part of the lifestyle and culture in Japan.
  • The sake market (almost all are nihonshu) is the second largest brewed liquor (such as beer) market in Japan.

How is it made?

  • For making nihonshu three main raw materials – rice, koji-kin (a type of fungal spore) and water – are required.
  • Its production follows an alcoholic fermentation method called parallel multiple fermentation and involves raw material treatment, koji making, starter culture making, mash making, pressing, heat sterilisation and bottling.
  • The rice and koji used should originate in Japan.

Try this PYQ:

Q.Which of the following has/have been accorded ‘Geographical Indication’ status?

  1. Banaras Brocades and Sarees
  2. Rajasthani Daal-Bati-Churma
  3. Tirupathi Laddu

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

Post your answers here.

 


Back2Basics:  Geographical Indication

  • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
  • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
  • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
  • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
  • GI is granted for a term of 10 years in India. As of today, more than 300 GI tags has been allocated so far in India (*Wikipedia).
  • The tag stands valid for 10 years.

 

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Indian Missile Program Updates

Arihant SLBM launch: Enhancing India’s underwater capability

Note4Students

From UPSC perspective, the following things are important :

Prelims level: INS Arihant ,SLBM

Mains level: Security Challenges,Indias naval capability.

SLBM

Context

  • On October 14, India joined a select group of nations when it announced the successful launch of an SLBM (submarine-launched ballistic missile). The other six nations that have demonstrated similar underwater capability include the five permanent members of the UN Security Council Russia, the UK, France and China. In August 2016, North Korea claimed a successful launch of an SLBM.

Features of K-15 SLBM

  • The code names K-15 or B-05, is an Indian submarine-launched ballistic missile (SLBM) with a range of 750 kilometres (466 mi) that was designed for retaliatory nuclear strikes. It belongs to the K Missile family and forms a part of India’s nuclear triad.
  • The K-15 is a two-stage submarine-launched ballistic missile which uses a gas booster to eject out of its launch platform and rise up to the surface of water. A solid rocket motor is fired after the missile reaches a fixed altitude. The missile has a range of around 750 kilometres (466 mi).

SLBM

About INS Arihant

  • Launched in 2009 and Commissioned in 2016, INS Arihant is India’s first indigenous nuclear powered ballistic missile.
  • It is capable submarine built under the secretive Advanced Technology Vessel (ATV) project, which was initiated in the 1990s.
  • INS Arihant and its class of submarines are classified as ‘SSBN’, which is the hull classification symbol for nuclear powered ballistic missile carrying submarines.
  • While the Navy operates the vessel, the operations of the SLBMs from the SSBN are under the purview of India’s Strategic Forces Command, which is part of India’s Nuclear Command Authority.

SLBM

What is the Significance of SLBM for India?

  • Making India’s strategic profile strong: This achievement is significant in the context of India’s strategic profile. The navy, DRDO and other agencies who have enabled this success should be commended.
  • Enhancing Underwater deterrence: A credible underwater deterrent is perceived as being invulnerable to detection and hence nations with the capacity can deliver a retaliatory second strike this enhances their deterrence capabilities.
  • Showcasing the precision and high accuracy: While the press release is sparse in providing technical details or confirming the range of the SLBM, its assertion that the missile impacted the target area “with very high accuracy” is, nevertheless, instructive.
  • Familiarity and capability with SLMB : The crew of the INS Arihant and the entire HR (human resource) comprising the pyramid from the SFC (strategic forces command) going right up to the national command authority with the Prime Minister at the apex have acquired the necessary proficiency to launch an SLBM should the exigency arise.
  • Demonstration of competence: India can be justifiably proud of having acquired and demonstrated this level of competence, but this achievement needs to be located objectively. An SSBN (a nuclear-propelled submarine armed with a nuclear-tipped ballistic missile) is deemed to be the ultimate deterrent and this profile of macro-lethality and zero error credibility is predicated on the robustness of the “boat” and the efficacy of the missile.
  • Validates SSBN programme: The successful user training launch of the SLBM by INS Arihant is significant to prove crew competency and validate the SSBN programme, a key element of India’s nuclear deterrence capability. A robust, survivable and assured retaliatory capability is in keeping with India’s policy to have ‘Credible Minimum Deterrence that underpins its ‘No First Use’ commitment.

SLBM

What is the deterrence?

  • Deterrence, military strategy under which one power uses the threat of reprisal effectively to preclude an attack from an adversary power. With the advent of nuclear weapons, the term deterrence largely has been applied to the basic strategy of the nuclear powers and of the major alliance systems.

How the SLBM will secure deterrence against the enemy?

  • Tackling to rising Chinese capability: It merits recall that China became nuclear weapon capable in 1964 and carried out its first SLBM test (the J-1 with a range of 1700 km) in 1982. Over the years, the PLA Navy had its own techno-strategic challenges with nuclear-propelled submarines and was able to test a 9,000 km missile only in 2018. It is understood that a fully armed Chinese SSBN that would be deemed to be operational to undertake a credible deterrence patrol is scheduled for mid-2025.
  • Nuclear deterrence is necessary: Acquiring the optimum degree of nuclear deterrence is imperative for India, given its distinctive spectrum of security and strategic challenges. India has made slow but steady progress in its missile programme, nuclear weapon capability, the nuclear submarine and more recently the building of an aircraft carrier

Conclusion

  • India’s restraint in relation to announcements and claims about strategic capability burnishes deterrence in a quiet but effective manner. Walking softly, while wielding a big stick is desirable as a national trait.

Mains Question

Q. How the launch of K-15 SLBM will enhance the security dynamics of India? Discuss the India’s underwater capability to maintain deterrence and security at the same time?

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Poverty Eradication – Definition, Debates, etc.

About 41.5 crore Indians out of multi-dimensional poverty since 2005-06

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Multi-Dimensional Poverty Index

Mains level: Persistence of acute poverty in India

poverty

About 41.5 crore people exited poverty in India during the 15-year period between 2005-06 and 2019-21, out of which two-thirds exited in the first 10 years, and one-third in the next five years, according to the global Multidimensional Poverty Index (MPI).

What is global MPI?

  • The global Multidimensional Poverty Index (MPI) is an international measure of acute poverty covering over 100 developing countries.
  • It complements traditional income-based poverty measures by capturing the severe deprivations that each person faces at the same time with respect to education, health and living standards.
  • The global MPI was developed by OPHI with the UN Development Programme (UNDP) for inclusion in UNDP’s flagship Human Development Report in 2010.
  • It has been published in the HDR ever since.

poverty

Multidimensional poverty in India: Major improvements

poverty

  • The report shows that the incidence of poverty fell from 55.1% in 2005-06 to 16.4% in 2019-21 in India.
  • Deprivations in all 10 MPI indicators saw significant reductions as a result of which the MPI value and incidence of poverty more than halved.
  • Improvement in MPI for India has significantly contributed to the decline in poverty in South Asia.
  • It is for the first time that it is not the region with the highest number of poor people, at 38.5 crore, compared with 57.9 crore in Sub-Saharan Africa.
  • Bihar, the poorest State in 2015-2016, saw the fastest reduction in MPI value in absolute terms.

Long way towards alleviation

  • Despite the strides made, the report notes that the ongoing task of ending poverty remains daunting.
  • India has by far the largest number of poor people worldwide at 22.8 crore, followed by Nigeria at 9.6 crore.
  • Two-third of these people live in a household in which at least one person is deprived in nutrition.
  • There were also 9.7 crore poor children in India in 2019-2021 — more than the total number of poor people, children and adults combined, in any other country covered by the global MPI.

Why multi-dimensional poverty does persist in India?

Poverty is not just the absence of income, money and/or money-like resources required to meet needs.

  • Multiple disadvantages: A person who is poor can suffer multiple disadvantages at the same time – for example they may simultaneously have:
  1. Poor health or malnutrition
  2. Lack of clean water or electricity
  3. Poor quality of livelihood options
  4. Little/No schooling
  5. Disempowerment
  6. Threats of violence
  7. Climate change vulnerability etc.

Other factors include:

  1. Limited financial resources
  2. Material deprivation
  3. Social isolation
  4. Exclusion and powerlessness
  5. Physical and psychological ill-being
  • Multiple dimensions: Focusing on one factor alone, such as income, is not enough to capture the true reality of poverty. National MPI ensures a holistic approach towards defining poverty at the national level.
  • More comprehensive: MP measures can be used to create a more comprehensive picture. They reveal who is poor and how they are poor – the range of different disadvantages they experience.
  • Better targeting: As well as providing a headline measure of poverty, multidimensional measures can be broken down to reveal the poverty level in different areas of a country and among different sub-groups of people.
  • Priority definition for target groups: It offers statistics that determine the national priorities by using a set of dimensions, indicators with respect to the urban and rural areas of India along with an indicator-wise deconstruction and breakdown.

Various govt. interventions to for poverty alleviation

(I) Food Security

  • National Food Security Act 2013 (also ‘Right to Food Act’): It aims to provide subsidized food grains to approximately two thirds of the country’s 1.2 billion people.

(II) Employment and Skilling

  • National Rural Livelihood Mission (NRLM)Ministry of Rural Development started NRLM 2011 to evolve out the need to diversify the needs of the rural poor and provide them jobs with regular income on a monthly basis.
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) – In 2005 Ministry of Rural Development initiated MGNEREGA to provide 100 days of assured employment every year to every rural household. One-third of the proposed jobs would be reserved for women.

(III) Income Support

  • PM Jan Dhan Yojana (PMJDY): The Ministry of Finance in 2014 initiated PMJDY that aimed at direct benefit transfer of subsidy, pension, insurance, etc., and attained the target of opening 1.5 crore bank accounts. The scheme particularly targets the unbanked poor.
  • PM Kisan Samman Nidhi (PM KISAN): PM KISAN is an initiative by the government of India in which all farmers will get up to ₹6,000 per year as minimum income support.

Various challenges

  • Pauperization: Every year a huge number is added to the population pool of the country. To exemplify, this pandemic has led to severe pauperization of migrant workers.
  • Regional divide: Incidence of extreme poverty continues to be much higher in rural areas than in urban areas.
  • Jobless growth: Despite rapid growth and development, an unacceptably high proportion of our population continues to suffer from severe and multidimensional deprivation.
  • Inadequate resources: The resources allocated to anti-poverty programmes are inadequate and there is a tacit understanding that targets will be curtailed according to fund availability.
  • Implementation bottlenecks: Lack of proper implementation and right targeting has been legacy issues in India. There has been a lot of overlapping of schemes.

 

 

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Electoral Reforms In India

Will electoral bonds reveal the source of funds, SC asks Centre

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Electoral Bond

Mains level: Transparency in election funding

The Supreme Court has asked the government whether the electoral bonds system reveals the source of money pumped in to fund political parties even as the Centre maintained that the scheme is “absolutely transparent”.

What are Electoral Bonds?

  • Electoral bonds are banking instruments that can be purchased by any citizen or company to make donations to political parties, without the donor’s identity being disclosed.
  • It is like a promissory note that can be bought by any Indian citizen or company incorporated in India from select branches of State Bank of India.
  • The citizen or corporate can then donate the same to any eligible political party of his/her choice.
  • An individual or party will be allowed to purchase these bonds digitally or through cheque.

About the scheme

  • A citizen of India or a body incorporated in India will be eligible to purchase the bond
  • Such bonds can be purchased for any value in multiples of ₹1,000, ₹10,000, ₹10 lakh, and ₹1 crore from any of the specified branches of the State Bank of India
  • The purchaser will be allowed to buy electoral bonds only on due fulfillment of all the extant KYC norms and by making payment from a bank account
  • The bonds will have a life of 15 days (15 days time has been prescribed for the bonds to ensure that they do not become a parallel currency).
  • Donors who contribute less than ₹20,000 to political parties through purchase of electoral bonds need not provide their identity details, such as Permanent Account Number (PAN).

Objective of the scheme

  • Transparency in political funding: To ensure that the funds being collected by the political parties is accounted money or clean money.

Who can redeem such bonds?

  • The Electoral Bonds shall be encashed by an eligible Political Party only through a Bank account with the Authorized Bank.
  • Only the Political Parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last General Election to the Lok Sabha or the State Legislative Assembly, shall be eligible to receive the Electoral Bonds.

Restrictions that are done away

  • Earlier, no foreign company could donate to any political party under the Companies Act
  • A firm could donate a maximum of 7.5 per cent of its average three year net profit as political donations according to Section 182 of the Companies Act.
  • As per the same section of the Act, companies had to disclose details of their political donations in their annual statement of accounts.
  • The government moved an amendment in the Finance Bill to ensure that this proviso would not be applicable to companies in case of electoral bonds.
  • Thus, Indian, foreign and even shell companies can now donate to political parties without having to inform anyone of the contribution.

Issues with the Scheme

  • Opaque funding: While the identity of the donor is captured, it is not revealed to the party or public. So transparency is not enhanced for the voter.
  • No IT break: Also income tax breaks may not be available for donations through electoral bonds. This pushes the donor to choose between remaining anonymous and saving on taxes.
  • No anonymity for donors: The privacy of the donor is compromised as the bank will know their identity.
  • Differential benefits: These bonds will help any party that is in power because the government can know who donated what money and to whom.
  • Unlimited donations: The electoral bonds scheme and amendments in the Finance Act of 2017 allows for “unlimited donations from individuals and foreign companies to political parties without any record of the sources of funding”.

Way ahead

  • The worries over the electoral bond scheme, however, go beyond its patent unconstitutionality.
  • The concern about the possibility of misuse of funds is very pertinent.
  • The EC has been demanding that a law be passed to make political parties liable to get their accounts audited by an auditor from a panel suggested by the CAG or EC. This should get prominence.
  • Another feasible option is to establish a National Election Fund to which all donations could be directed.
  • This would take care of the imaginary fear of political reprisal of the donors.

 

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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

PM inaugurates ‘One Nation, One Fertilizer’ Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: One Nation One Fertiliser (ONOF)

Mains level: India's fertilizer subsidy

Prime Minister has inaugurated 600 Kisan Samridhi Kendras and ‘One Nation, One Fertilizer’ scheme and said that these steps were being taken to modernise agriculture.

One Nation One Fertilizer (ONOF)

  • The single brand name for UREA, DAP, MOP and NPK etc. would be BHARAT UREA, BHARAT DAP, BHARAT MOP and BHARAT NPK etc. respectively for all Fertilizer Companies, State Trading Entities (STEs) and Fertilizer Marketing Entities (FMEs).
  • Also a logo indicating Fertilizer subsidy scheme namely Pradhanmantri Bhartiya Janurvarak Pariyojna will be used on said Fertilizer bags.
  • Under the scheme, companies are allowed to display their name, brand, logo and other relevant product information only on one-third space of their bags.
  • On the remaining two-thirds space, the “Bharat” brand and Pradhanmantri Bharatiya Jan Urvarak Pariyojana logo will have to be shown.

What is the government’s argument for introducing this scheme?

The government’s logic for introducing a single ‘Bharat’ brand for all subsidised Fertilizers being marketed by companies is as follows:

(1) Subsidies normalization

  • The maximum retail price of urea is currently fixed by the government, which compensates companies for the higher cost of manufacturing or imports incurred by them.
  • The MRPs of non-urea Fertilizers are, on paper, decontrolled.
  • But companies cannot avail of subsidy if they sell at MRPs higher than that informally indicated by the government.
  • Simply put, there are some 26 Fertilizers (inclusive of urea), on which government bears subsidy and also effectively decides the MRPs;

(2) Harmonizing markets

  • Apart from subsidising and deciding at what price companies can sell, the government also decides where they can sell.
  • This is done through the Fertilizer (Movement) Control Order, 1973.
  • Under this, the department of Fertilizers draws an agreed monthly supply plan on all subsidised Fertilizers in consultation with manufacturers and importers.
  • This supply plan is issued before the 25th of each month for the following month, with the department also regularly monitoring movement to ensure Fertilizer availability as per requirement, including remote areas.

(3) Farmers welfare

  • The government is spending vast sums of money on Fertilizer subsidy (the bill is likely to cross Rs 200,000 crore in 2022-23).
  • By deciding where and at what price companies can sell, it would obviously want to take credit and send that message to farmers.

What can be the drawbacks of the scheme?

  • It may disincentivize Fertilizer companies from undertaking marketing and brand promotion activities.
  • They will now be reduced to contract manufacturers and importers for the government. Any company’s strength ultimately is its brands and farmer trust built over decades.
  • Currently, in case of any bag or batch of Fertilizers not meeting the required standards, the blame is put on the company. But now, that may be passed on fully to the government.
  • Politically, the scheme might well boomerang rather than benefit the ruling party.

Challenges in the fertilizer sector

  • Distortion in use due to price difference: In 2019-20, fertilizer use per hectare of cultivated area varied from 70 kg of NPK in Rajasthan to 250 kg in Telangana
  • Shift in the composition of fertilizer used:The high price differences among fertilizers (Nitrogen is much cheaper than Potassium and Phosphorus) have disturbed the relative prices of various fertilizers and resulted in a big shift in the composition of fertilizers used in the country in favor of urea and thus Nitrogen.
  • Increasing fertilizer subsidy: Fertilizer subsidy has doubled in a short period of three years. For 2021-22, the Union Budget has estimated fertilizer subsidy at ₹79,530 crores (from ₹66,468 crores in 2017-18).
  • Burden on exchequer: Taxpayers bear 78% of the cost of urea and farmers pay only 22%. This is expected to increase and is not sustainable.
  • Sensitive to Global impacts: The subsidy is likely to reach a much higher level due to the recent upsurge in the prices of energy,the international prices of urea and other fertilizers, and India’s dependence on imports.
  • Import dependence: The total demand for urea in the country is about 34-35 million tonnes whereas the domestic production is about 25 million tonnes.

Other issues

  • Lesser expansion of Irrigation facilities and consequent low fertilizer consumption leads to low demand and therefore, restricts the growth of the industry.
  • Use of Obsolete Technology: Most of the fertilizer industry operates under PSUs that are using decade-old technology and thus making huge losses and also the competitive edge.

Way forward

  • India should pay attention to improving fertilizer efficiency through need-based use rather than broadcasting fertilizer in the field.
  • The use of bio-fertilizers is necessary to maintain soil health as more and more use of chemical fertilizers kills all the microorganisms available in the soil, which are so essential for maintaining soil health.

 

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Air Pollution

What are Green Crackers?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Green crackers

Mains level: Not Much

cracker

Many states have outlawed firecrackers and mandated the production, sale, and usage of only green firecrackers in light of Diwali’s impending arrival and the air pollution crisis.

What are green crackers?

  • Green Crackers are fireworks that are healthy to the environment and can lessen the air pollution that conventional firecrackers produce.
  • The Council for Scientific and Industrial Research (CSIR) created these.
  • These green crackers, designed by the National Environmental and Engineering Research Institute (NEERI), a CSIR lab, contain flower pots, pencils, fireworks, maroons, bombs, and chakkar.

How are they made?

  • Green crackers, also known as eco-friendly crackers, are made from alternative raw materials to have a smaller negative impact on the environment and to pose fewer health hazards.
  • It has been stated that green crackers are environmentally friendly because they don’t contain aluminum, barium, potassium nitrate, or carbon.

Are they totally pollution free?

  • Green crackers are 30% less polluting than regular ones.
  • Green crackers have less or no barium, and that the chemical barium nitrate is what causes the smoke and emissions.
  • In addition to lowering air pollution, green crackers are said to have a lower sound level than the ordinary crackers—between 110 and 125 decibels as opposed to roughly 160 decibels for conventional crackers.
  • Despite all of their benefits, these environmentally friendly firecrackers are more expensive than standard ones.

Types of green crackers

(1) SWAS – Safe Water Releaser

  • They will discharge water vapour into the atmosphere, which will dampen the discharged dust.
  • It won’t contain sulphur or potassium nitrate.
  • There will be a release of a diluent for gaseous emissions.
  • There will be a 30% reduction in the amount of particle dust emitted.

(2) STAR – Safe Thermite Cracker

  • Does not contain sulphur and potassium nitrate
  • Discharge of less particulate matter
  • Lowered noise level

(3) SAFAL – Safe Minimal Aluminum

  • Does not contain sulphur and potassium nitrate
  • Discharge of less particulate matter
  • Lowered noise level as compared to traditional ones

Judicial observation over fire-crackers

  • It is made clear that there is no total ban on the use of firecrackers.
  • Only those firecrackers are banned (joined, chemical) which are found to be injurious to health and affect the health of the citizens particularly the senior citizens and the children.

What are the traders’ concerns?

  • Traders have expressed concerns about the crackers’ shelf life due to the new green cracker composition.
  • Manufacturers also need to overcome the rigorous certification process run by the Petroleum and Explosives Safety Organisation (PESO).

 

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Innovations in Biotechnology and Medical Sciences

Dr. Mahalanabis: the man behind ORS no more

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ORS, Dr. Mahalanabis

Mains level: NA

ors

While Oral Rehydration Solution (ORS) as a simple, effective remedy for dehydration is known around the world, the physician who pioneered the treatment, Dr. Dilip Mahalanabis, passed away.

What is ORS?

  • Oral rehydration therapy is a type of fluid replacement used to prevent and treat dehydration, especially due to diarrhea.
  • It involves drinking water with modest amounts of sugar and salts, specifically sodium and potassium.
  • Oral rehydration therapy can also be given by a nasogastric tube.

About Dr. Mahalanabis

  • Born on November 12, 1934 in West Bengal, Dr Mahalanabis studied in Kolkata and London.
  • He joined the Johns Hopkins University International Centre for Medical Research and Training in Kolkata in the 1960s, where he carried out research in oral rehydration therapy.
  • When the 1971 war broke out, millions of people from then East Pakistan took refuge in India.
  • Clean drinking water and sanitation were problems at these refugee camps, and cholera and diarrhoea broke out among people anyway exhausted and dehydrated.
  • Dr Mahalanabis and his team were working in one such camp at Bongaon.
  • Stocks of intravenous fluids were running out, on top of which there weren’t enough trained personnel to administer the IV treatment.

How he discovered ORS?

  • From his research, Dr Mahalanabis knew that a solution of sugar and salt, which would increase water absorption by the body, could save lives from Cholera.
  • He and his team then prepared solutions of salt and glucose in water and began storing them in large drums, from where patients or their relatives could help themselves.
  • The oral solution then consisted of 22 gm glucose (as commercial monohydrate), 3.5 gm sodium chloride (as table salt) and 2.5 gm sodium bicarbonate (as baking soda) per liter of water.
  • This was the simplest formula, containing the minimum number of ingredients, previously found to be effective in severely ill patients with cholera.

His legacy

  • While initially, the medical fraternity was septical, the WHO eventually adopted ORS as the standard method for treating cholera and other diarrhoeal diseases.
  • Today, the WHO recommends a combination of sodium chloride, anhydrous glucose, potassium chloride and Trisodium citrate dihydrate as the ORS formula.
  • In India, July 29 is observed as ORS Day.

 

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Hunger and Nutrition Issues – GHI, GNI, etc.

Reality Check on India’s Hunger Index Rank

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Global Hunger Index

Mains level: Global Hunger Index, Indias Stance,issues with the index.

Hunger

Context

  • For the second time in two years, the Ministry of Women and Child Development rejected the Global Hunger Index (GHI) that ranked India 107 among 121 countries. India was accorded a score of 29.1 out of 100 (with 0 representing no hunger), placing it behind Sri Lanka (66), Myanmar (71), Nepal (81) and Bangladesh (84). It referred to the index as “an erroneous measure of hunger”.

All you need to know about Global Hunger Index

  • Annual report: The GHI is a peer reviewed annual report that endeavours to “comprehensively measure and track hunger at the global, regional, and country levels”. Authors of the report primarily refer to the United Nations’ Sustainable Development Goal 2(SDG 2) that endeavours to achieve ‘Zero Hunger’ by 2030.
  • Four Indicators: According to them, the report attempts to “raise awareness and understanding of the struggle against hunger”. The GHI score is computed using four broad indicators under nourishment (measure of the proportion of the population facing chronic deficiency of dietary energy intake), child stunting (low height for age), child wasting (low weight for height) and child mortality (death of a child under the age of five).

Why these four Indicators are considered?

  • To acknowledge undernourishment: As per the authors, it provides a basis to measure inadequate access to food and is among the lead indicators for international hunger targets, including the UN SDG 2. Child stunting and mortality, offers perspective about the child’s vulnerability to nutritional deficiencies, access to food and quality of nutrition.
  • To address urgent requirement of nutrition: Since children (especially below five) are at a developmental age there is a greater and urgent requirement for nutrition with results particularly visible. This forms the basis of assessing nutritional requirement among children. Adults are at a sustainable age they are not growing but rather subsisting on nutrition for healthy survival. And lastly, on the same rationale, child mortality indicates the serious consequences of hunger.
  • Uses data provided by Government: It explains that while FAO uses a suite of indicators on food security, including two important indicators — prevalence of undernourishment and prevalence of moderate or severe food insecurity. The GHI only uses the data obtained through food balance sheets based on data reported by member countries, including India.
  • Shows a picture of food supply chain: A food balance sheet provides a comprehensive picture of the pattern of a country’s food supply during a specified reference period. It lists down the source of the supply and its utilisation specific to each food category.
  • Takes into account three child specific indicators: On why the GHI uses three child specific indicators out of the four to calculate hunger for a country’s population, the website explains, By combining the proportion of undernourished in the population(1/3 of the GHI score) with the indicators relating to children under age five (2/3of the GHI score), the GHI ensures that both the food supply situation of the population as a whole and the effects of inadequate nutrition within a vulnerable subset of the population are captured.
  • International recognition: A Senior Policy Officer at the GHI said that, “All four indicators used in the calculation of the global hunger are recognised by the international community, including India, and used for measuring progress towards the UN SDGs.”

Hunger

What are the Objections of Government of India?

  • Very small sample size of the Index: As per the Ministry for Women and Child Development, the report lowers India’s rank based on the estimates of the Proportion of Undernourished (PoU) population. It elaborates that the U.S. Food and Agriculture Organisation (FAO) estimate is based on the ‘Food Insecurity Experience Scale (FIES)’ survey module conducted using the Gallup World Poll that bears a sample size of 3,000 respondents being asked eight questions. It stated that the data represented a miniscule proportion for account of India’s size.
  • Counter assertion by India’s dietary supply is increasing: It countered the assertions in the report pointing to India’s per capita dietary energy supply increasing year on year due to enhanced production of major agricultural commodities in the country over the years.
  • Index doesn’t reflect the actual ground reality: According to the Ministry, the report is not only disconnected from ground reality but also chooses to ignore the food security efforts of the Central government especially during the pandemic.
  • Efficient PMGKAY: The Union Cabinet through the Pradhan Mantri Garib KalyanAnn Yojana (PMGKAY) provisioned an additional 5 kg ration per person each month in addition to their normal quota of food grains.

Hunger

What are the Government efforts to address the hunger issue so far?

  • The Midday Meal Scheme: The Midday meal is a school meal programme in India designed to better the nutritional standing of school-age children nationwide.
  • The programme supplies free lunches on working days for children in primary and upper primary classes in government, government aided, local body, Education Guarantee Scheme, and alternate innovative education centres, Madrasa supported under Sarva Shiksha Abhiyan, and National Child Labour Project schools run by the ministry of labour.
  • Serving 120 million children in over 1.27 million schools and Education Guarantee Scheme centres, the Midday Meal Scheme is the largest of its kind in the world.
  • PM-POSHAN: The name of the scheme has been changed to PM-POSHAN (Pradhan Mantri Poshan Shakti Nirman) Scheme, in September 2021, by MoE (Ministry of Education), which is nodal ministry for the scheme.
  • The Central Government also announced that an additional 24 lakh students receiving pre-primary education at government & government-aided schools would also be included under the scheme by 2022.

Hunger

Conclusion

  • No country becomes great by dwarfing its people. India has certainly improved its poverty and hunger problems but there is still lot of ground yet to cover. Global hunger index may have exaggerated the India’s hunger issue but hunger problem in India is real if not substantial.

Mains Question

Q.Explain the methodology used by global hunger index report and India’s objection to it. What are the initiatives of government to reduce the hunger problem in India?

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Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

Food Security, Success Story and Challenges Ahead

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: global Food security challenge

Food Security

Context

  • The Hunger Hotspots Outlook (2022-23) a report by the Food and Agriculture Organization of the United Nations (FAO) and the World Food Programme (WFP) forebodes escalating hunger, as over 205 million people across 45 countries will need emergency food assistance to survive. 16 October is celebrated as World Food Day.

What is the current situation of Food security worldwide?

  • Adverse impact of COVID 19 pandemic: Globally, food and nutrition security continue to be undermined by the impacts of the COVID 19 pandemic, climate change, spiralling food inflation, conflict, and inequality.
  • Challenge of Severe hunger continues: Today, around 828 million people worldwide do not have enough to eat, and over 50 million people are facing severe hunger.

Food Security

What are the challenges for ensuring food security?

  • The challenge of Climate change: Recent climate shocks have raised concerns about India’s wheat and rice production over the next year. Therefore, it is important to place a greater focus on climate adaptation and resilience building.
  • Rising population will need more resource: By 2030, India’s population is expected to rise to 1.5 billion. Agro food systems will need to provide for and sustainably support an increasing population.
  • The challenge of Soil degradation: Nutrition and agricultural production are not only impacted by climate change but also linked to environmental sustainability. Soil degradation by the excessive use of chemicals, non-judicious water use, and declining nutritional value of food products need urgent attention.

How India managed its food security?

  • Constant efforts towards Self-sufficiency: India has had an inspiring journey towards better production and achieving self-sufficiency and is now one of the largest agricultural product exporters. During 2021-22,it recorded $49.6billion in total agriculture exports a 20%increase from 2020-21.
  • Efficient targeted public distribution system: One of India’s greatest contributions to equity in food is its National Food Security Act (NFSA)2013 which anchors the Targeted Public Distribution System (TPDS), the PM POSHAN scheme (earlier known as the Midday Meals scheme), and the Integrated Child Development Services (ICDS).
  • Extensive food safety net: Today, India’s food safety nets collectively reach over a billion people. The WFP works with State and national governments to strengthen these systems to reach the people who need them most.
  • Large scale digitization of programmes: The Government continues to take various measures to improve these programmes with digitisation and measures such as rice fortification, better health, and sanitation.
  • Better buffer stock policy: Food safety nets and inclusion are linked with public procurement and buffer stock policy visible during the global food crisis (2008-12)and the COVID19 pandemic fallout, whereby vulnerable and marginalised families in India continued to be buffered by the TPDS which became a lifeline.
  • Successful implementation of PMGKAY: An International Monetary Fund paper titled ‘Pandemic, Poverty, and Inequality: Evidence from India’ asserted that‘ extreme poverty was maintained below 1% in 2020 due to the Pradhan Mantri Garib KalyanAnna Yojana (PMGKAY

Food Security

How India and World can manage food security?

  • Avoiding conventional input intensive agriculture: There is increased recognition to move away from conventional input intensive agriculture towards more inclusive, effective and sustainable agro food systems that would facilitate better production.
  • Promoting sustainable practices: Since 1948, the FAO has continued to play a catalytic role in India’s progress in the areas of crops, livestock, fisheries, food security, and management of natural resources through the promotion of sustainable practices.
  • Focus on millets: Millets have received renewed attention as crops that are good for nutrition, health, and the planet. As climate-smart crops, they are hardier than other cereals. Since they need fewer inputs, they are less extractive for the soil and can revive soil health.
  • India’s Efforts as an example: India has led the global conversation on reviving millet production for better lives, nutrition, and the environment, including at the UN General Assembly, where it appealed to declare 2023 as the International Year of Millets. It is the world’s leading producer of millets, producing around 41% of total production in2020. The national government is also implementing a Sub-Mission on Nutrition-Cereals (Millets) as part of the National Food Security Mission.
  • G20 presidency an opportunity for India: India’s upcoming G20 presidency is an opportunity to bring food and nutrition security to the very centre of a resilient and equitable future.

Food Security

Conclusion

  • India can lead the global discourse on food and nutrition security by showcasing home grown solutions and best practices, and championing the principle of leaving no one behind working continuously to make its food system more equitable, empowering, and inclusive.

Mains Question

Q.Food security has become increasingly challenging due to unpredictable weather conditions. Illustrate. How India can contribute to the global food security issue.

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Cyber Security – CERTs, Policy, etc

Making India’s Quantum Cyberspace resilient

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Quantum Technology

Mains level: Cyber security, Quantum Technology applications, advantages and disadvantages.

Quantum

Context

  • The Army has collaborated with industry and academia to build secure communications and cryptography applications. This step builds on last year’s initiative to establish a quantum computing laboratory at the military engineering institute in Mhow, Madhya Pradesh.

 What is mean by quantum computing?

  • Quantum computing is an area of study focused on the development of computer based technologies centered around the principles of quantum theory.
  • Quantum computing studies computation systems that make direct use of quantum-mechanical phenomena to perform operations on data.
  • Classical computers encode information in bits. Each bit can take the value of 1 or 0. These 1s and 0s act as on/off switches that ultimately drive computer functions.

What is quantum Theory?

  • Quantum theory explains the nature and behavior of energy and matter on the quantum (atomic and subatomic) level. Quantum theory is the theoretical basis of modern physics.
  • The nature and behavior of matter and energy at that level is sometimes referred to as quantum physics and quantum mechanics.

Quantum

What is quantum computing laboratory that the Army has set up?

  • Two research centres: The Army has set up a quantum computing laboratory and a centre for artificial intelligence (AI) at a military engineering institute in Madhya Pradesh. The Army will get support from National Security Council Secretariat (NSCS).
  • Purpose of the quantum lab: To spearhead research and training in this key developing field. It said the Indian Army is making steady and significant strides in the field of emerging technologies
  • To Train personnel on the cyber warfare: Training on cyber warfare is being imparted through a state of the art cyber range and cyber security labs.
  • The Focus areas: Key thrust areas are quantum key distribution, quantum communication and quantum computing, among others.

What is the rationale behind this development?

  • To provide facility centre for extensive and dedicated research: The two centres will carry out extensive research in developing transformative technologies for use by the armed forces.
  • To transform the current system of cryptography: Research undertaken by the Army in the field of quantum technology will help it leapfrog into the next generation of communication and transform the current system of cryptography to post-quantum cryptography.
  • Developing quantum resistant systems: With traditional encryption models at risk and increasing military applications of quantum technology, the deployment of quantum-resistant systems has become the need of the hour.
  • Vulnerable existing digital infrastructure: There is a need of upgrading current encryption standards that can be broken by quantum cryptography. Current protocols like the RSA will quickly become outdated. This means that quantum cyber attacks can potentially breach any hardened target, opening a significant vulnerability for existing digital infrastructure. Hack proofing these systems will require considerable investments.
  • To be in a League of nations in this sector: For example US: National Quantum Initiative Act has already allocated $1.2 billion for research in defence related quantum technology. China now hosts two of the world’s fastest quantum computers.

Quantum

India’s developments in this sector so far?

  • National Mission on Quantum Technologies and Applications: In 2019, the Centre declared quantum technology a “mission of national importance”. The Union Budget 2020-21 had proposed to spend Rs 8,000 crore on the newly launched National Mission on Quantum Technologies and Applications.
  • Successfully demonstrated a Quantum key Distribution (QKD) link: In February 2022, a joint team of the Defence Research and Development Organization and IIT Delhi successfully demonstrated a QKD link between two cities in UP  Prayagraj and Vindhyachal  located 100 kilometres apart.

What are the challenges facing India?

  • Current capabilities are not sufficient: Currently, India has very few capabilities in developing advanced systems capable of withstanding quantum cyber attacks.
  • The china challenge: China’s quantum advances expand the spectre of quantum cyber attacks against India’s digital infrastructure, which already faces a barrage of attacks from Chinese state-sponsored hackers.
  • Dependence on Foreign hardware: India is heavily dependent on foreign hardware, particularly Chinese hardware, is an additional vulnerability.

Quantum

How India can make its cyberspace resilient?

  • Procuring quantum resistant mechanism from US: India must consider procuring the United States National Security Agency’s (NSA) Suite B Cryptography Quantum-Resistant Suite as its official encryption mechanism. The NSA is developing new algorithms for their cypher suite that are resistant to quantum cyber attacks. This can then facilitate India’s official transition to quantum-resistant algorithms.
  • Enhancing cryptographic standards: The Indian Defence establishment can consider emulating the cryptographic standards set by the US’s National Institute of Standards and Technology (NIST) which has developed a series of encryption tools to handle quantum computer attacks. It has developed a series of four algorithms to frame a post-quantum cryptographic standard.
  • Diplomatic partnerships in this sector: Diplomatic partnerships with other techno-democracies countries with top technology sectors, advanced economies, and a commitment to liberal democracy can help India pool resources and mitigate emerging quantum cyber threats.
  • Active participation in global avenues: Active participation in the Open Quantum Safe project a global initiative started in 2016 for prototyping and integrating quantum-resistant cryptographic algorithms.
  • Providing funds and encouragement: India must start its national initiatives to develop quantum-resistant systems. For this, the government can fund and encourage existing open-source projects related to post-quantum cryptography.
  • Start implementing the capabilities: The country should start implementing and developing capabilities in quantum-resistant communications, specifically for critical strategic sectors. QKDs over long distances, especially connecting military outposts for sensitive communications, can be prioritised to ensure secure communications whilst protecting key intelligence from potential quantum cyber attacks.
  • Establishing nationwide network: Establish a nationwide communication network integrated with quantum cryptographic systems, thereby protecting cyberspace from any cross-border quantum cyber offensive.

Conclusion

  • The world is moving towards an era in which the applications of quantum physics in strategic domains will soon become a reality, increasing cyber security risks. India is getting there slowly but steadily. India needs a holistic approach to tackle these challenges. At the heart of this approach should be the focus on post-quantum cyber security.

Mains Question

Q.The world is moving towards an era in which applications of quantum physics in strategic domains will soon become a reality, increasing cyber security threats. In this context, what steps can India take to make its cyberspace resilient and quantum-resistant? Discuss.

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RBI Notifications

What are Digital Banking Units (DBUs)?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Digital Banking Units (DBUs)

Mains level: Read the attached story

dbu

PM has dedicated 75 digital banking units to the nation, taking forward an announcement that was made in the 2022-23 Union Budget.

What are DBUs?

  • A digital banking unit is a specialized fixed point business unit or hub, housing a certain minimum digital infrastructure for delivering digital banking products and services.
  • It aims at servicing existing financial products and services digitally in self-service mode at any time.
  • The RBI has announced the guidelines for DBUs, following the report of a working group of the Indian Banks Association (IBA).

Who can set up these DBUs?

  • Commercial banks (other than regional rural banks, payment banks and local area banks) with past digital banking experience are permitted to open DBUs in tier 1 to tier 6 centres.
  • They are permitted, unless otherwise specifically restricted, without having the need to take permission from the RBI in each case.

What services will be provided by these units?

  • As per the RBI, each DBU must offer certain minimum digital banking products and services.
  • Such products should be on both liabilities and assets side of the balance sheet of the digital banking segment.
  • Digitally value-added services to conventional products would also qualify as such.
  • The services include saving bank accounts under various schemes, current accounts, fixed deposit and recurring deposit accounts, digital kits for customers, mobile banking etc.
  • It also includes- Internet banking, debit cards, credit cards, and mass transit system cards, digital kits for merchants, UPI QR codes, BHIM Aadhaar and point of sale (PoS).

What about lending services?

  • Other services include making applications for and onboarding customers for identified retail, MSME or schematic loans.
  • This may also include end-to-end digital processing of such loans, starting from online application to disbursal and identified government-sponsored schemes that are covered under the national portal.

How will these DBUs compete with fintechs?

  • Currently, fintechs operating as neobanks offer digital banking services but they do so in partnership with non-banking financial companies (NBFCs).
  • Some of the neobanks offering services in India are Jupiter, Fi Money, Niyo, Razorpay X.
  • Compared to conventional banks with online and mobile banking facilities, neobanks or digital banks excel at product innovation and offer far better digital solutions.
  • However, given the arrangement they, some in the industry have pegged these digital banks as “glorified digital distribution companies”.

 

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Foreign Policy Watch: India-China

What is China’s ‘Wolf Warrior’ Diplomacy?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Wolf warrior diplomacy

Mains level: Read the attached story

wolf

Chinese President Xi Jinping will get an endorsement for a third term as President. His “wolf warrior” style of diplomacy has particularly attracted attention.

What does Wolf Warrior’ Diplomacy mean?

  • A term that gained popularity, especially after Xi became President, “wolf warrior diplomacy” is a tactic for the Chinese government to extend its ideology beyond China and counter the West and defend itself.
  • It is an unofficial term for the more aggressive and confrontational style of communication that Chinese diplomats have taken to in the last decade.
  • A 2015 Chinese action film, titled ‘Wolf Warrior’, and its sequel have served as the inspiration for the term.
  • The films, with their nationalist themes and dialogues, focus on Chinese fighters who frequently face off against Western mercenaries.

Do you know?

Panchasheel also called the Five Principles of Peaceful Co-existence was signed on 29p April 1954 and since then it has become a guiding principle of India’s bilateral relations with other countries.

Why China resorts to such diplomacy?

The change in strategy has been attributed to many reasons, such as:

  1. Xi’s more authoritarian tendencies as compared to earlier leaders
  2. Deteriorating US-China relations under former US President Donald Trump and
  3. Coronavirus pandemic-related accusations on China, etc.

What does this look like in practice?

  • Some examples can be seen in the form of messaging on social media too, where Chinese officials are quick to counter any allegations by the West and proactively launch attacks.
  • For instance, in 2021 Chinese government spokesperson Lijian Zhao tweeted a digitally morphed photo of an Australian soldier killing a child, claiming the Australian army was killing children in Afghanistan.
  • This led the Australian Prime Minister to announce he would seek an official apology, but China did not budge.
  • But this is not limited to Western countries.

Indian experience

  • The new ‘wolf warrior diplomacy’ confronts head-on any criticism of China in the public sphere.
  • They lecture host governments and don’t always show up when ‘summoned’ by foreign offices.
  • Delhi has been at the receiving end for a while — especially during the recent crises of Doklam and Ladakh.

 

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Oil and Gas Sector – HELP, Open Acreage Policy, etc.

Tax on windfall profit on crude oil, export of diesel, ATF raised

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Windfall taxes

Mains level: Read the attached story

The government raised the windfall tax on domestically-produced crude oil by more than a third while doubling the rate on export of diesel and reintroducing the levy on export of jet fuel (ATF) in line with the rise in international oil prices.

What is a Windfall Tax?

  • Windfall taxes are designed to tax the profits a company derives from an external, sometimes unprecedented event — for instance, the energy price-rise as a result of the Russia-Ukraine conflict.
  • These are profits that cannot be attributed to something the firm actively did, like an investment strategy or an expansion of business.
  • The US Congressional Research Service (CRS) defines a windfall as an “unearned, unanticipated gain in income through no additional effort or expense”.
  • One area where such taxes have routinely been discussed is oil markets, where price fluctuation leads to volatile or erratic profits for the industry.

When did India introduce this?

  • In July this year, India announced a windfall tax on domestic crude oil producers who it believed were reaping the benefits of the high oil prices.
  • It also imposed an additional excise levy on diesel, petrol and air turbine fuel (ATF) exports.
  • Also, India’s case was different from other countries, as it was still importing discounted Russian oil.

How is it levied?

  • Governments typically levy this as a one-off tax retrospectively over and above the normal rates of tax.
  • The Central government has introduced a windfall profit tax of ₹23,250 per tonne on domestic crude oil production, which was subsequently revised fortnightly four times so far.
  • The latest revision was on August 31, when it was hiked to ₹13,300 per tonne from ₹13,000.

Why govt. introduced windfall tax?

  • There have been varying rationales for governments worldwide to introduce windfall taxes like:
  1. Redistribution of unexpected gains when high prices benefit producers at the expense of consumers,
  2. Funding social welfare schemes, and
  3. Supplementary revenue stream for the government

Why are countries levying windfall taxes now?

  • Prices of oil, gas, and coal have seen sharp increases since last year and in the first two quarters of the current year, although they have reduced recently.
  • Pandemic recovery and supply issues resulting from the Russia-Ukraine conflict shored up energy demands, which in turn have driven up global prices.
  • The rising prices meant huge and record profits for energy companies while resulting in hefty gas and electricity bills for households in major and smaller economies.
  • Since the gains stemmed partly from external change, multiple analysts have called them windfall profits.

Issues with imposing such taxes

  • Companies are confident in investing in a sector if there is certainty and stability in a tax regime.
  • Since windfall taxes are imposed retrospectively and are often influenced by unexpected events, they can brew uncertainty in the market about future taxes.
  • IMF says that taxes in response to price surges may suffer from design problems—given their expedient and political nature.
  • It added that introducing a temporary windfall profit tax reduces future investment because prospective investors will internalise the likelihood of potential taxes when making investment decisions.
  • There is another argument about what exactly constitutes true windfall profits; how can it be determined and what level of profit is normal or excessive.
  • Another issue is who should be taxed — only the big companies responsible for the bulk of high-priced sales or smaller companies as well— raising the question of whether producers with revenues or profits below a certain threshold should be exempt.

 

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