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  • Air Pollution

    For an expanse of blue, with air so clean

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    What’s the news?

    • According to UN Secretary-General António Guterres, the Earth has entered an era of global boiling, marked by scorching heatwaves, devastating floods, and erratic weather patterns.

    Central idea

    • With scorching heatwaves, devastating floods, and erratic weather patterns becoming the new normal, the urgency to address the triple-planetary crisis of biodiversity loss, climate change, and pollution has never been more apparent. Amidst this global turmoil, it’s crucial to recognize that one silent but deadly adversary is among us: air pollution.

    The Silent Killer: Air Pollution

    • Global health statistics are grim, with lung cancer claiming 10 million lives worldwide in 2020, a number projected to rise by another 3.2 million by 2050, according to a report by the Indian National Institute of Health.
    • South Asia, home to two billion people, is a grim example, hosting nine of the world’s ten most polluted cities, with Delhi topping the list.
    • Despite some progress in terms of Air Quality Index (AQI) improvements, Delhi remains in the grip of perilous air pollution, especially during the winter months.

    The Looming Threat of Air Pollution

    • Lung cancer, cardiovascular disorders, respiratory ailments, and mental health issues continue to devastate lives.
    • Delhi’s air, laden with sulfur dioxide, nitrogen oxides, high particulate matter, carbon monoxide, and ozone, deprives over 30 million residents of their basic human right to breathe clean air.
    • Vulnerable groups like immunocompromised individuals, pregnant women, children, and the elderly suffer disproportionately.
    • In 2019, a Lancet report attributed 1.67 million deaths in India to air pollution, accounting for a staggering 17.8% of total deaths in the country.

    Efforts in Progress to Combat Air Pollution

    • PUSA Decomposer: The Indian Agricultural Research Institute (IARI) has developed the PUSA Decomposer, which employs biotechnology to tackle agricultural pollution. This innovative solution addresses the burning of crop residues, a significant contributor to air pollution.
    • State-level Policies: Many state governments have implemented policies like GRAP 3 (Graded Rapid Action Plan) to monitor air quality in pollution hotspots. The establishment of Green War Rooms represents a proactive approach to managing and mitigating air pollution in these regions.
    • Startups and Innovation: Numerous startups, often led by young entrepreneurs, are actively engaged in finding sustainable solutions to air pollution. These initiatives include the conversion of agricultural waste into valuable products, reducing the environmental impact of farming practices.

    International Initiatives and Collaborations to Combat Air Pollution

    • UNESCO Initiatives: UNESCO has undertaken various initiatives to address air pollution. One notable initiative is the implementation of an internal carbon tax on all flight tickets. This tax aims to reduce carbon emissions from air travel, a significant contributor to global air pollution.
    • World Air Quality Project: The World Air Quality Project provides real-time air quality data, allowing residents to make informed decisions about their activities and travel based on current air quality conditions. This empowers individuals to protect their health by avoiding areas with poor air quality.
    • Collaboration with UNEP: UNESCO collaborates with the United Nations Environment Programme (UNEP) on environmentally conscious practices. For example, the ‘Virtual Meetings’ project promotes digital working to reduce the need for travel and its associated carbon emissions.
    • Clean-Air-For-Schools: UNESCO’s Clean-Air-For-Schools program focuses on spreading education and awareness about clean air among students and the wider community. This initiative aims to engage future generations in the fight against air pollution.
    • Promotion of Sustainable Practices: International initiatives also promote sustainable practices in various sectors. This includes the adoption of electric vehicles, the replacement of traditional lighting systems with energy-efficient LED arrangements, and the implementation of solar-powered offices to reduce carbon emissions.
    • Protection of Historical Sites: Efforts are underway to protect historical and cultural sites from the harmful effects of air pollution. Developing strategies to curb air pollution in the vicinity of these sites is essential for their preservation.
    • Green Solutions: UNESCO encourages the development of green solutions, such as urban forests, parks, and green corridors, to mitigate air pollution in urban areas.

    Viable solutions to combat air pollution

    • Urban Planning and Design: Cities worldwide are adopting innovative urban planning and design strategies to prioritize human health and environmental sustainability. Car-free zones, green spaces, and smart urban layouts can significantly reduce air pollution by promoting alternative transportation methods and reducing traffic congestion.
    • Public Transportation: Electrified public transportation systems, including electric buses and trains, offer a sustainable and low-pollution alternative to traditional fossil-fuel-powered vehicles. These initiatives reduce emissions and contribute to cleaner air in urban areas.
    • Nature-Based Solutions: Integrating nature-based solutions, such as urban forests, parks, and green corridors, into urban landscapes can help absorb pollutants and improve air quality. These green spaces also provide additional benefits for public health and well-being.
    • Biotechnology: Innovative biotechnology, like the PUSA decomposer mentioned earlier, can play a crucial role in reducing agricultural pollution, a significant contributor to poor air quality.
    • Renewable Energy: Transitioning to clean and renewable energy sources can significantly reduce the air pollution associated with fossil fuel combustion. China’s shift to clean energy and electrified mobility serves as a prime example of this transition’s positive impact.
    • Sustainable Farming Practices: Initiatives like Indonesia’s Carbon Efficient Farming Project and efforts in Thailand and Vietnam to reduce open straw burning demonstrate the importance of adopting sustainable agricultural practices to minimize air pollution.
    • International Collaboration: Global initiatives, such as those by UNESCO and the World Air Quality Project, facilitate international cooperation to combat air pollution. These efforts include measures like implementing carbon taxes on flight tickets and promoting environmentally conscious practices.
    • Youth-Led Advocacy: Young activists worldwide are actively raising awareness about air pollution and advocating for cleaner air. Their efforts, including real-time air quality data monitoring and environmental education, play a vital role in inspiring change.

    Conclusion

    • The time for action is now. The problem of air pollution was created by people, and it is people who must find and implement solutions, supported by effective air quality policies and action plans. The choice is ours, and it is one that demands urgency, resolve, and a collective commitment to securing a cleaner, healthier world for all.

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  • G20 : Economic Cooperation ahead

    Sustainable agriculture, climate change and nutrition: a complex challenge

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    What’s the news?

    • The interconnected challenges of food security, climate change, and sustainable agriculture emphasize the need for a comprehensive approach. The G20 Indian Presidency can play a pivotal role in fostering international cooperation to address these issues.

    Central idea

    • The intricate link between food security, climate variability, and sustainable agriculture has far-reaching consequences for the Earth and its inhabitants. Climate change threatens food security through erratic weather and extreme events, while agricultural practices exacerbate climate change, creating a damaging feedback loop.

    Climate Variability and Food Insecurity

    • Climate variability, characterized by erratic weather patterns such as droughts and floods, directly impacts agriculture. It can lead to crop failures, reduced agricultural productivity, and increased food insecurity.
    • Erratic weather patterns disrupt traditional farming practices and make it challenging to predict and plan for successful harvests.
    • Vulnerable populations are disproportionately affected by extreme weather events like droughts and floods.

    How does land use play a significant role in both climate change and food security? 

    • Unsustainable land use practices, such as deforestation and the expansion of agriculture, release carbon into the atmosphere, contributing to global warming.
    • On the other hand, practices like reforestation, agroforestry, and land conservation can sequester carbon and improve soil health, benefiting both agriculture and climate change mitigation.

    The Role of Sustainable Agriculture

    • Mitigating Environmental Impact: Sustainable agriculture focuses on practices that aim to minimize the environmental degradation associated with conventional farming. This includes reducing the use of synthetic pesticides and fertilizers, which can harm ecosystems and water quality.
    • Maintaining or Improving Productivity: Sustainable agricultural practices are designed to maintain or even improve agricultural productivity while reducing environmental harm. This is essential to ensuring a stable and sufficient food supply, particularly in the face of climate change-related disruptions.
    • Enhancing Climate Resilience: Sustainable agricultural practices, such as crop rotation, organic farming, and reduced pesticide use, can enhance the resilience of farming systems. These practices make agriculture less susceptible to disruptions caused by climate variability, such as extreme weather events.
    • Carbon Sequestration: The article suggests that sustainable land use practices, such as reforestation, agroforestry, and land conservation, can sequester carbon from the atmosphere. This not only helps mitigate climate change but also improves soil health, benefiting both agriculture and the environment.

    How can agriculture be made more sustainable and resilient in communities in developing countries?

    • Increasing Crop Diversity: Encouraging farmers to diversify their crop choices can improve resilience. Growing a variety of crops can increase the risk of crop failure due to unpredictable weather patterns and pests. Crop diversity also enhances nutrient cycling in the soil, improving overall soil health.
    • Diversifying Farming Systems: Promoting mixed farming systems that include livestock and aquaculture alongside traditional crops can enhance resilience. These integrated systems can optimize resource use, provide multiple sources of income, and improve nutrient cycling.
    • Efficient Irrigation Systems: Investing in efficient irrigation systems can help farmers cope with changing rainfall patterns and water scarcity. These systems can improve soil health and water conservation, reducing vulnerability to climate-related challenges.
    • Promoting Organic Farming Practices: Encouraging organic farming practices, which minimize the use of synthetic pesticides and fertilizers, can reduce environmental harm and improve the resilience of agricultural systems. Organic practices often focus on building healthy soils, which can better withstand climate variability.
    • Cultivating Climate-Resistant Crops: Promoting the cultivation of climate-resistant crop varieties and drought-resistant seeds, such as millets, can help farmers adapt to changing climate conditions. These crops are often better suited to withstand droughts and extreme temperatures.
    • Strengthening Market Links: Facilitating connections between farmers and markets can help ensure that farmers receive fair prices for their produce. This can improve the economic resilience of farming communities and incentivize sustainable practices.
    • Microfinance Opportunities: Providing access to microfinance opportunities can assist farmers in investing in sustainable agricultural practices. Financial support can help farmers acquire the resources they need to adopt more resilient and sustainable farming methods.
    • Policy Support: Implementing policies that emphasize sustainable agriculture and provide incentives for sustainable practices can create an enabling environment for farmers. These policies can include subsidies for sustainable practices, access to credit, and support for climate adaptation.

    Global Prospects through the G20 Indian Presidency

    • International Cooperation: The G20 Indian Presidency offers a platform for international cooperation. G20 countries can collaborate and coordinate efforts to address pressing global challenges, including climate change and food security.
    • Knowledge Sharing: The G20 provides a forum for knowledge sharing among member nations. Countries can exchange best practices, share research findings, and pool resources to tackle common issues more effectively.
    • Policy Advocacy: G20 member countries can use their collective influence to advocate for policies that promote sustainability, resilience, and equity in global food systems. This can include advocating for climate-resilient agricultural practices and sustainable land use.
    • Resource Mobilization: The G20 can facilitate resource mobilization to support initiatives aimed at creating a more sustainable and resilient global food system. This includes financial support for sustainable agriculture projects and climate adaptation efforts.
    • Innovation and Research: G20 countries can promote international cooperation in agriculture research and innovation. By working together, they can accelerate the development of sustainable crop varieties, pest-resistant crops, and advanced farming technologies.
    • Global Food Security: The G20 can play a pivotal role in enhancing global food security. This involves coordinating efforts to improve food distribution systems, reduce food losses and waste, and promote sustainable agriculture to ensure a stable food supply for vulnerable populations worldwide.
    • Agricultural and Rural Development: G20 member nations can leverage their resources and expertise to support agricultural and rural development in developing countries. Investments in infrastructure, capacity development, and financial assistance to smallholder farmers can alleviate poverty and promote sustainable farming practices.

    Conclusion

    • Fostering international cooperation is essential to addressing the complex nexus of food security, climate variability, and sustainable agriculture for a resilient and sustainable future. The G20, with its potential to drive global strategies, should play a pivotal role in coordinating efforts to mitigate climate change, adapt agricultural practices, and ensure food security on a global scale.

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  • Festivals, Dances, Theatre, Literature, Art in News

    Reviving the Seethakali Folk Art

    Prelims Only | History | Mains Paper 1: Arts & Culture

    seethakali

    Central Idea

    • Seethakali folk dance of Kerala has been fading from the public domain, and around three decades ago, it was on the verge of extinction.

    Seethakali Folk Art

    • Seethakali is a traditional folk dance that originates from the rich cultural heritage of Kerala.
    • It is performed primarily by Dalit artists from the Veda and Pulaya communities.

    Key Features

    • Seethakali is a unique form of folk art that combines elements of storytelling dance, drama, and song.
    • The central narrative revolves around the epic Ramayana, particularly focusing on the characters of Sita, Ram, and Laxman.
    • Artists adorn themselves with eye-catching makeup, traditional ornaments, and elaborate costumes, enhancing the visual appeal of the performance.

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  • Capital Markets: Challenges and Developments

    SEBI to introduce One-Hour Trade Settlement

    Prelims Only | Economics | Mains Paper 3: Investment Models

    Central Idea

    • SEBI aims to implement a One-Hour trade Settlement by March 2024.
    • Additionally, an Application Supported by Blocked Amount (ASBA)-like facility for secondary market trading is anticipated to launch in January 2024.

    Do you know?

    India is the first jurisdiction in the globe that has moved to T+1 settlement (trade plus one day).  We are now talking about one-hour settlement and that will be a stepping-stone to instantaneous settlement.

    Understanding Trade Settlement

    • Trade settlement involves the exchange of funds and securities on the settlement date.
    • It is considered complete when purchased securities are delivered to the buyer, and the seller receives the funds.
    • India transitioned to a T+1 settlement cycle earlier this year, facilitating faster fund transfers, share deliveries, and operational efficiency.

    SEBI’s Stance

    • SEBI believes that achieving instantaneous trade settlement will take additional time due to necessary technology development.
    • Therefore, SEBI plans to implement a one-hour trade settlement before the instantaneous settlement.
    • SEBI expects instantaneous trade settlement to be launched by the end of 2024.

    Benefits of One-Hour Trade Settlement

    • In the current T+1 settlement cycle, the seller receives funds in their account the day after a trade.
    • With one-hour settlement, the seller would receive funds within an hour of selling shares, and the buyer would have shares in their demat account within an hour.

    Back2Basics: T+1 Settlement Cycle

    • The T+1 settlement cycle means that trade-related settlements must be done within a day, or 24 hours, of the completion of a transaction.
    • For example, under T+1, if a customer bought shares on Wednesday, they would be credited to the customer’s demat account on Thursday.
    • This is different from T+2, where they will be settled on Friday.
    • As many as 256 large-cap and top mid-cap stocks, including Nifty and Sensex stocks, come under the T+1 settlement.
    • Until 2001, stock markets had a weekly settlement system.
    • The markets then moved to a rolling settlement system of T+3, and then to T+2 in 2003.
    • In 2020, Sebi deferred the plan to halve the trade settlement cycle to one day (T+1) following opposition from foreign investors.

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    Strengthening export control measures for Dual-Use Items

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    dual-use items

    Central Idea

    • The government has recently announced its commitment to enhancing the control of dual-use items to prevent their misuse by non-state actors and terrorists.
    • Dual-use items refer to goods that can be utilized for both civilian and military purposes.

    Understanding Dual-Use Items

    • Dual-use items are commodities with the potential for application in both civilian and military contexts.
    • They are heavily regulated due to their capacity to be initially intended for civilian use and later repurposed for military or even terrorist activities.
    • Some examples include global positioning satellites, missiles, nuclear technology, chemical and biological weapons, night vision technology, thermal imaging equipment, specific models of drones, precision-engineered aluminium pipes, and certain types of ball bearings.

    Control Mechanisms for Dual-Use Items

    • International Cooperation: Most industrialized nations have established export controls on specific categories of designated dual-use technologies.
    • Multilateral Agreements: Various international treaties and agreements govern the export of these items.
    • India’s Participation: India is a signatory to major multilateral export control regimes like the Missile Technology Control Regime (MTCR), Wassenaar Arrangement (WA), Australia Group (AG), and Nuclear Suppliers Group (NSG). It is also party to key conventions such as the Chemical Weapons Convention (CWC) and Biological and Toxic Weapons Convention (BWC).
    • DGFT’s Role: In India, the Director General of Foreign Trade (DGFT) plays a pivotal role as a facilitator of exports and imports. The DGFT maintains a specialized list known as SCOMET (Specialty Chemicals, Organisms, Materials, Equipment, and Technologies) to regulate dual-use items.

    What is the SCOMET List?

    • SCOMET item is an acronym for Special Chemicals, Organisms, Materials, Equipment, and Technologies.
    • These are dual-use items that can be used for both civilian and military applications. India’s Foreign Trade Policy regulates the export of items on the SCOMET List.
    • Exporting these items and technologies falls under strict regulations. It can either be prohibited or permitted only under a license.
    • The SCOMET control list aligns with the control lists of various multilateral export control regimes and conventions.

    Necessity of Controlling Dual-Use Items

    • India’s Commitment: India is firmly committed to non-proliferation efforts related to dual-use items.
    • Integral Component: Export control over these items forms an integral part of India’s broader export control system.
    • Compliance: It ensures that sensitive and dual-use goods, including those covered by the Missile Technology Control Regime (MTCR), are traded in full compliance with India’s obligations under various international regimes.

    Conclusion

    • The government’s commitment to enhancing export control measures for dual-use items reflects its dedication to global non-proliferation efforts and the responsible trade of sensitive technologies.
    • Collaborative efforts among governments, industries, and stakeholders remain crucial in achieving effective export control of these items.

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  • Forest Conservation Efforts – NFP, Western Ghats, etc.

    Laws governing forests of Northeast India

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

    forest

    Central Idea

    Why discuss this?

    • The amendment permits the diversion of forest land for certain projects near international borders without forest clearance under the Forest (Conservation) Act (FCA) 1980.
    • Other Northeastern states, including Nagaland, Tripura, Mizoram, and Sikkim, governed by the ruling govt at centre or its allies, have also objected to the 100-km exemption clause.

    Forest (Conservation) Amendment Bill, 2023
    Objective Clarify and enhance the Forest (Conservation) Act, 1980
    Scope Applicability to land designated as forest since 1980
    Exemptions Land within 100 km of borders for national security, roadside amenities, and public roads
    Assignment of Forest Land Prior approval required from central government for all entities
    Permitted Activities Expanded to include check posts, fencing, bridges, zoos, safaris, and eco-tourism facilities

     

    Is FCA Applicable to the Northeast?

    • Constitutional protections like Article 371A for Nagaland and 371G for Mizoram prohibit the application of certain laws enacted by Parliament in these states.
    • In 1986, Nagaland extended the FCA’s application to specific forests, but its status remains uncertain due to conflicting ministry statements.
    • Mizoram, since becoming a state in 1986, has the FCA in force, covering a significant portion of its forest areas.

    FCA Application in the Rest of the Northeast

    • The FCA is applicable in the rest of the Northeast, including Meghalaya, Tripura, Assam, Manipur, Sikkim, and Arunachal Pradesh.
    • The FCA clearance process differs among these states.

    Conclusion

    • Protecting Northeastern forests requires a balance between legal frameworks like the FCA and FRA.
    • Clear guidelines and proactive measures can safeguard both forest rights and the environment in the region.

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  • Banking Sector Reforms

    Urban Cooperative Banks (UCBs): Concerns and Considerations

    Prelims Only | Economics | Mains Paper 3: Inclusive Growth & Issues

    Central Idea

    • The Reserve Bank of India (RBI) Governor recently addressed the issues and vulnerabilities surrounding Urban Cooperative Banks (UCBs), highlighting the importance of addressing these concerns.

    What are Urban Cooperative Banks (UCBs)?

    • UCBs are primary cooperative banks primarily situated in urban and semi-urban areas, catering to the financial needs of small borrowers and businesses.
    • They are governed by the Banking Regulations Act, 1949, the Banking Laws (Cooperative Societies) Act, 1955, and registered under the Cooperative Societies Act of the respective State.
    • Initially, UCBs were permitted to lend exclusively for non-agricultural purposes; however, they have diversified their size and operations since 1996.
    • Approximately 79% of UCBs are concentrated in five states: Andhra Pradesh, Gujarat, Karnataka, Maharashtra, and Tamil Nadu.

    Types of UCBs

    UCBs are categorized into different tiers by the RBI based on their deposit size:

    • Tier 1: Deposits up to Rs 100 crore.
    • Tier 2: Deposits ranging from Rs 100 to 1,000 crore.
    • Tier 3: Deposits between Rs 1,000 to Rs 10,000 crore.
    • Tier 4: Deposits exceeding Rs 10,000 crore.

    Key concerns/addresses raised by RBI

    (1) Operational Stability

    • UCBs must enhance their financial and operational resilience to contribute to the overall stability of the financial and banking sector.
    • The quality of governance within UCBs plays a pivotal role in ensuring the stability of these individual banks.

    (2) Setting up right priorities

    • Boards and directors of UCBs must prioritize integrity and transparency in financial reporting, refraining from innovative accounting practices that obscure the actual financial position.
    • Proactive management of Asset Liability is essential to manage liquidity risk systematically.
    • Establishing robust IT and cybersecurity infrastructure, along with the availability of necessary skills at the bank level, is crucial.
    • Governance practices, especially those related to Compliance, Risk Management, and Internal Audit, need strengthening.

    (3) Functioning of Boards

    • Ensuring directors possess adequate skills and expertise.
    • Constituting a professional board of management.
    • Considering the diversity and tenure of board members.
    • Promoting transparent and participatory board discussions.
    • Ensuring the effective functioning of board-level Committees.

    (4) Credit Risk Management

    • Upholding risk management through robust underwriting standards.
    • Implementing effective post-sanction monitoring.
    • Timely recognition and mitigation of emerging stress.
    • Pursuing follow-ups with large Non-Performing Asset (NPA) borrowers to facilitate recovery and maintain adequate provisioning.

    Conclusion

    • Addressing the concerns and vulnerabilities in Urban Cooperative Banks is vital for the overall stability and resilience of the banking sector.
    • The RBI’s recommendations highlight the importance of governance, risk management, and transparency in ensuring the health of UCBs.

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  • Russian Invasion of Ukraine: Global Implications

    Black Sea Grain Initiative to resume soon: Turkey

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

    black sea

    Central Idea

    • The Black Sea grain deal lapsed on July 17. Turkey now seeks to resume the treaty.
    • Russia though had not agreed to renew the deal, citing unmet promises and difficulties in its own agricultural exports due to Western sanctions.

    Black Sea Grain Initiative

    • The Initiative eased Russia’s naval blockade and saw the reopening of three key Ukrainian ports.
    • The UN and Turkey brokered the deal in July 2022, allowing cargo ships to travel between Ukrainian ports and undergo inspections to ensure they were not carrying arms.
    • The deal has been extended twice but is set to expire on July 17, 2023.
    • The agreement created procedures to safely export grain from certain ports to attempt to address the 2022 food crisis.
    • It provides a safe maritime humanitarian corridor for Ukrainian exports (particularly for food grains) from three of its key ports: Chornomorsk, Odesa and Yuzhny/Pivdennyi in the Black Sea.

    Outcomes of this deal

    • Approximately 9.8 million tonnes of grains have been shipped so far since the deal was brokered as per International Grains Council (IGC) Projections.
      • The IGC is an intergovernmental organization established in 1949. Its primary purpose is to promote cooperation and consultation on grains trade and related aspects globally.
      • India is an exporting member of the IGC.
    • The initiative has also been credited for having made a huge difference in the global cost of living crisis.

    Why was this deal launched?

    • Ukraine’s Role: Ukraine is a significant exporter of food grains, including wheat and corn, and contributes to the UN’s food aid programs.
    • Impact of Russian Invasion: Russia’s invasion and blockade of Ukrainian ports raised concerns about food security and soaring prices globally.

    Russia’s Opposition and Reasons

    • Claims of Unmet Promises: Russia argues that promises made under the deal have not been fulfilled, affecting its own agricultural exports and fertilizers due to Western sanctions.
    • Obstacles to Agricultural Exports: Russia faces challenges with payment platforms, insurance, shipping, and logistics, even though there are no direct restrictions on its agricultural products.
    • Frustration and Goodwill: Russian President expressed frustration and stated that Russia has shown goodwill in extending the deal but feels enough is enough.
    • Shift in Grain Destinations: Russia claims the deal was meant to ensure global food security, but Ukraine has mainly exported to high- and middle-income countries, while the UN notes that food prices have cooled down, benefiting poorer nations.

    Impact on Grain Exports and Production

    • Russian Wheat Export Dominance: Russia remains the world’s top wheat exporter, primarily targeting the Middle East, North Africa, and Central Asia.
    • Ukraine’s Declining Shipments: Ukraine’s grain shipments are projected to more than halve, with production at an 11-year low.
    • Shifting Markets: Ukraine’s grain markets have shifted from Asia and North Africa to Europe, driven by ease of shipment, causing a glut of Ukrainian grain and protests from farmers in Eastern European countries.

    International Grains Council

    • The International Grains Council (IGC) is an intergovernmental organization that oversees the Grains Trade Convention and aims to promote cooperation in the global grain trade. Established in 1949 as the International Wheat Council, it was renamed in 1995 to reflect its expanded scope.
    • India is a member of the International Grains Council (IGC), which is the intergovernmental organization that oversees the global grains trade.

    Back2Basics: Black Sea

    • Black Sea is bound by Ukraine to the north and northwest, Russia and Georgia to the east, Turkey to the south, and Bulgaria and Romania to the west.
    • It links to the Sea of Marmara through the Bosphorus and then to the Aegean through the Dardanelles.

    Significance of Black Sea for Russia

    • Black Sea has traditionally been Russia’s warm water gateway to Europe.
    • For Russia, the Black Sea is both a stepping stone to the Mediterranean.
    • It acts as a strategic buffer between NATO and itself.
    • It showcases the Russian power in the Mediterranean and to secure the economic gateway to key markets in southern Europe.
    • Russia has been making efforts to gain complete control over the Black Sea since the Crimean crisis of 2014.

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  • Forest Conservation Efforts – NFP, Western Ghats, etc.

    Ecocide Laws: Protecting Nature and Addressing Limitations

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

    ecocide

    Central Idea

    • Mexico’s ‘Maya train’ project has generated controversy due to its scale and environmental impact.
    • The project aims to connect tourists to historic Maya sites across a 1,525 km route, with a cost of $20 billion.
    • Critics have dubbed it a “megaproject of death” for its threats to the Yucatan peninsula’s environment, Indigenous communities, and cave systems, leading to accusations of ecocide and ethnocide.

    Understanding Ecocide

    • Ecocide, derived from Greek and Latin, means “killing one’s home” or “environment.”
    • It encompasses actions like port expansions damaging marine life, deforestation, illegal sand-mining, and polluting rivers.
    • Several countries, including Mexico, are considering ecocide legislation, with calls to elevate it to an international crime akin to genocide.
    • There is no universally accepted legal definition of ecocide.
    • A proposed definition states it as “unlawful or wanton acts committed with knowledge of causing substantial, severe, and either widespread or long-term environmental damage.

    Historical Context

    • Biologist Arthur Galston in 1970 linked environmental destruction with genocide during the Vietnam War’s Agent Orange use.
    • British lawyer Polly Higgins advocated for ecocide as an international crime in 2010.
    • The Rome Statute of the ICC deals with four major crimes but only holds perpetrators accountable for intentional wartime environmental damage.

    Importance of Ecocide as a Crime

    • Ecocide is a crime in 11 countries, with 27 others considering similar laws.
    • The European Parliament voted unanimously to include ecocide in law.
    • Ecocide laws provide a crucial legal instrument to protect the environment.
    • They can hold individuals in corporate leadership accountable and promote ethical investment practices.
    • These laws could offer justice to low- and middle-income countries disproportionately affected by climate change.

    Limitations and Concerns

    • Some argue that ecocide definitions are ambiguous, setting a low threshold for implicating entities.
    • The concept might unintentionally suggest it’s acceptable to destroy the environment for human benefit.
    • Proving ecocide may be challenging, especially for transnational crimes involving corporations.
    • The ICC’s limited jurisdiction, inability to hold corporate entities liable, and uneven track record in securing convictions are concerns.

    India’s Stance

    • India has recognized the legal personhood of nature in some judgments.
    • Some Indian judgments have used the term ‘ecocide,’ but it hasn’t fully materialized in law.
    • India’s legislative framework includes various environmental laws, which need consolidation and streamlining.
    • The National Green Tribunal lacks jurisdiction over certain critical environmental matters.
    • Addressing issues of liability and compensation remains a challenge, as seen in cases like the Bhopal gas disaster and CAMPA fund misuse.
    • India should align its environmental laws with the concept of ecocide.

    Conclusion

    • Ecocide laws are crucial for protecting the environment and holding perpetrators accountable.
    • However, challenges in defining, proving, and enforcing ecocide must be addressed.
    • India needs to update its environmental laws to incorporate ecocide principles, promoting a more comprehensive approach to environmental protection.

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

    The tax base is growing – government shouldn’t waste the opportunity

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    What’s the news?

    • India sees a surge in taxpayer base amidst tax policy challenges; a stable tax-to-GDP ratio raises questions on fiscal maneuverability and economic growth prospects.

    Central idea

    • In the lead-up to each budget, the Union government cites limited tax revenues as a spending constraint. Recent years have seen a surge in direct and indirect tax payers, challenging the idea that only a small segment contributes. This should ideally raise the tax-to-GDP ratio, yet tax rate cuts and pandemic disruptions have limited fiscal gains, hinting at a deliberate shift to a low-tax regime.

    What is meant by fiscal maneuverability?

    • It refers to the government’s ability to adjust its revenue and expenditure policies in response to changing economic conditions, budget constraints, and policy goals.

    What is Tax-to-GDP Ratio?

    • The Tax-to-GDP ratio is a financial indicator that measures the total tax revenue collected by a government as a percentage of its overall GDP for a specific period, typically a fiscal year.
    • This ratio is used to assess the level of taxation relative to the size of the economy.
    • A higher Tax-to-GDP ratio suggests that a larger portion of a nation’s economic output is being collected in the form of taxes.

    What Factors Have Led to the Government’s Limited Fiscal Maneuverability Before Budgets?

    • The common refrain: Historically, the Union government has often cited its limited tax revenues as a significant constraint on its ability to maneuver effectively in the run-up to budgets.
    • Steady increase in tax base: It’s noteworthy that there has been a consistent increase in both direct and indirect tax payers over recent years.
    • Economic context: This expansion in the tax base has occurred during a phase of slower, uneven economic growth.
    • Impact of tax cuts and disruptions: Despite the increase in taxpayers, cuts in both direct and indirect tax rates (including GST) and pandemic-induced economic disruptions have limited the fiscal gains from this surge in taxpayers.

    How Has the Taxpayer Base Evolved in Recent Years?

    • Growth in the taxpayer base: The tax base has shown substantial growth in recent years, challenging the belief that only a small section of society pays taxes.
    • Direct tax base expansion: The number of companies paying tax grew by about 43 percent, from 7.46 lakh to 10.7 lakh, between the assessment years 2014–15 and 2022–23.
    • Individual taxpayers: Individual taxpayers increased by 65 percent over the same period, rising from 5.38 crore to 8.9 crore.
    • Role of small taxpayers: It’s important to note that a significant number of these new tax payers have incomes less than Rs 5 lakh.

    Trends and Factors in the Expansion of the Indirect Tax Base

    • Indirect tax base growth: The number of active GST payers increased from 1.2 crore in 2019 to 1.4 crore by June 2023.
    • Composition: About 80 percent of these taxpayers are proprietorships, with another 10 percent being partnerships.
    • Incentives for registration: Smaller establishments are incentivized to register under GST to avail of the input tax credit.
    • Indirect tax impact: The growth in the indirect tax base may also be influencing the increase in direct tax payers.

    Impact of Tax Rate Reductions

    • Corporate tax rate reduction: In September 2019, the government announced a cut in the corporate tax rate for existing companies from 30 percent to 22 percent.
    • Impact on revenue: As per government figures, the revenue loss on account of this corporate tax reduction was Rs 1.28 lakh crore in 2019–20 and Rs 1 lakh crore in 2020–21.
    • Corporate tax-to-GDP ratio: The corporate tax-to-GDP ratio declined from 3.5 percent in 2018–19 to around 3.1 percent by 2022–23.
    • Personal income tax rebates: In the interim budget of 2019, the government announced that individual taxpayers with taxable income up to Rs 5 lakh would get a full tax rebate.
    • Personal income tax-to-GDP ratio: The personal income tax-to-GDP ratio increased from 2.5 percent in 2018–19 to 3 percent by 2022–23.
    • Increase in zero tax liability: Notably, the number of individuals with zero tax liability also increased from 2.9 crore in 2019–20 to 5.16 crore in 2022–23, which may limit the gains from an expansion in the tax base.

    What are the challenges?

    • Revenue Sustainability: A challenge arises in ensuring that the gains from an expanding tax base translate into sustainable revenue streams. Despite the increase in taxpayers, tax cuts and disruptions may limit the fiscal benefits.
    • Tax Evasion and Avoidance: Addressing tax evasion and avoidance remains a significant challenge. Although the formalization of the economy makes tax evasion more complicated, it requires effective measures to combat tax evasion further.
    • Balancing Tax Cuts: The reduction in tax rates, such as the corporate tax cut, has implications for government revenue. Striking a balance between encouraging economic growth through lower taxes and maintaining adequate fiscal resources is a constant challenge.
    • Targeted Spending: As the government’s fiscal space expands with a growing tax base, it faces the challenge of allocating resources effectively. Prioritizing and targeting spending on key development objectives while avoiding wasteful expenditures is essential.

    Future Prospects

    • Fiscal Sustainability: With an expanding economy and tax base, there is potential for improved fiscal sustainability. If managed effectively, this can provide the government with more resources to meet its long-term financial commitments.
    • Development Opportunities: The growth in the tax base offers opportunities for increased public investment in critical sectors, fostering economic development, and improving the overall quality of life for citizens.
    • Reduced Reliance on Borrowing: An increased tax base can reduce the government’s reliance on borrowing to meet budgetary needs, potentially leading to lower interest payments and debt management challenges.
    • Incentive for Formalization: As more individuals and businesses enter the tax net, there’s a natural incentive for greater formalization of the economy. This can reduce the size of the informal sector and promote economic stability.
    • Policy Flexibility: A broader tax base can provide the government with greater policy flexibility. It can consider adjustments to tax rates, exemptions, and deductions to support specific policy goals, such as promoting investment or addressing income inequality.
    • Enhanced Economic Growth: With appropriate fiscal policies, the increased revenue potential from a growing tax base can contribute to sustained economic growth, job creation, and poverty reduction.

    Conclusion

    • The government’s strategic choices regarding tax rates have influenced the country’s tax landscape, expanded the taxpayer base while maintained stable tax-to-GDP ratios. As India’s economy continues to evolve, these gains should not be squandered through excessive giveaways but rather strategically allocated to promote sustainable development and economic growth.

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