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Archives: News

  • Innovations in Biotechnology and Medical Sciences

    Understanding a Human Pangenome Map

    pangenome

    Central Idea

    • A study published in the Nature journal presents a pangenome reference map built using genomes from 47 anonymous individuals.
    • The individuals included in the study are from various regions, including Africa, the Caribbean, Americas, East Asia, and Europe.

    Understanding Genomes and Reference Genomes

    • The genome refers to the collection of all genes and regions between genes found in our chromosomes.
    • Each chromosome is composed of millions of nucleotides (A, T, G, and C) arranged in different combinations.
    • Genome sequencing helps understand genetic diversity and susceptibility to diseases.
    • A reference genome is a map used to compare newly sequenced genomes and identify differences.
    • The first reference genome, created in 2001, had limitations and did not represent human diversity accurately.

    What is Pangenome Map?

    • The new study focuses on building a pangenome map, which is a graph representing genetic diversity among individuals.
    • Pangenome maps use long-read DNA sequencing technologies to assemble sequences accurately.

    Importance of Pangenome Map

    • Although humans are more than 99% similar in their DNA, there is still a 0.4% difference between individuals.
    • A complete and error-free pangenome map helps understand genetic differences and human diversity.
    • It aids in identifying genetic variants linked to health conditions, such as the discovery of 150 new genes associated with autism.
    • The current pangenome map lacks representation from certain populations, including Indians.

    Implications for Indian Genomes

    • The pangenome map, despite not including Indian genomes, will assist in mapping Indian genomes against existing reference genomes.
    • Future pangenome maps with Indian genome data will provide insights into disease prevalence, rare gene discovery, diagnostic methods, and drug development.

     

    Key Terminologies

    Genome: The complete set of genes and regions between genes in an organism.

    Reference Genome: A map used to compare newly sequenced genomes and identify differences.

    Pangenome: A graph representing genetic diversity among individuals rather than a linear sequence.

    Nucleotides: The building blocks of DNA (A, T, G, C).

    Long-Read DNA Sequencing: A technology that produces longer and contiguous DNA strands for more accurate sequencing.

     

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  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    WHO’s advisory on Non-Sugar Sweeteners

    sweet

    Central Idea: The World Health Organization (WHO) issued new guidelines advising against the use of non-sugar sweeteners (NSS) as a healthy alternative to sugar.

    What are Non-Sugar Sweeteners?

    • NSS are low or no-calorie alternatives to sugar, including aspartame, saccharin, stevia, and others.
    • They are marketed for weight loss and controlling blood glucose in individuals with diabetes.

    WHO’s Finding

    • The WHO analyzed 283 studies on NSS intake in adults and children.
    • Higher intake of NSS was associated with a 76% increase in obesity risk and a 0.14 kg/m2 increase in BMI.
    • No evidence of long-term benefits on reducing body fat was found, and long-term use of NSS may increase the risk of Type 2 diabetes, cardiovascular diseases, chronic kidney disease, and cancer.
    • WHO suggests that NSS should not be used for weight control or reducing the risk of diet-related non-communicable diseases.

    Concerns and Recommendations

    • India has a high obesity rate and a significant number of people with pre-diabetes.
    • Lifestyle-related Type 2 diabetes is increasing among young individuals.
    • WHO recommends focusing on a balanced diet and minimally processed, unsweetened foods and beverages.

    What lies ahead?

    • WHO’s conditional guideline requires further discussions among policymakers before adoption as national policy.
    • Efforts should be made to educate youngsters about taste preferences and healthy eating habits.
    • Doctors can now provide more confident guidance to patients regarding NSS consumption.

     

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  • Modern Indian History-Events and Personalities

    In news: Neh Pema Shelphu Shrine

    neh pema

    Central Idea

    • The landowner of a disputed area in Arunachal Pradesh has demanded either compensation from Army for a land where Army has built Gurdwara near the Neh Pema Shelphu Shrine.

    Neh Pema Shelphu Shrine

    • It is a holy shrine located in the Mechukha Valley of Arunachal Pradesh.
    • It holds significant religious importance for the local Memba Buddhist community.
    • The shrine is believed to have been sanctified by Guru Padmasambhava, a prominent figure in Tibetan Buddhism, during his exploration of the area in the 8th century AD.
    • It has been a place of worship and pilgrimage for the Memba people since 1274 AD, according to historical records.
    • It attracts hundreds of Buddhists who visit the shrine annually during a pilgrimage in March.

    Why in news?

    • The Shiromani Gurdwara Parbandhak Committee claimed the shrine associated with Guru Nanak Dev, the first Sikh Guru, in Arunachal Pradesh has been turned into a Buddhist shrine.

     

     

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  • Tax Reforms

    Tax Collection at Source (TCS) on Foreign Credit Card Payments: Understanding the Intent and Impact is VItal

    TCS

    Central Idea

    • The recent announcement regarding the applicability of tax collection at source (TCS) on foreign payments made through credit cards has sparked a range of emotive reactions and sweeping remarks. However, it is crucial to understand the concept and consequences of this measure and avoid unnecessary panic.

    What is Tax Collection at Source (TCS) on Credit Card Payments?

    • TCS on credit card payments refers to the application of tax collection at source (TCS) on foreign payments made through credit cards.
    • When individuals use their credit cards for foreign transactions, a certain percentage of the transaction amount is collected as tax by the government at the time of payment.
    • This tax amount is then adjustable against the individual’s advance tax and final tax liabilities during the filing of their tax returns.
    • The purpose of TCS on credit card payments is to track foreign spending and ensure that individuals report their income accurately while encouraging tax compliance.
    • Applicability: TCS is applied when individuals use their credit cards for making payments in foreign currencies.
    • Tax Collection: A specific percentage of the payment amount is collected as tax by the government. This tax is collected directly by the credit card company or the payment processor.
    • Adjustable Tax: The tax amount collected through TCS is adjustable against the individual’s tax liabilities during the filing of their income tax returns. It is not an additional tax burden, but a prepayment of tax that can be adjusted against the final tax payable.
    • Purpose: TCS on credit card payments helps the government track foreign spending and ensure that individuals accurately report their income from foreign transactions.
    • Rates and Thresholds: The tax percentage and thresholds may vary based on government regulations. These rates and thresholds are subject to change from time to time.
    • Exclusions: Certain categories, such as education and medical expenses, may have lower tax rates or exemptions from TCS. Payments made using international debit or credit cards within a specified limit may also be excluded from TCS.

    TCS

    What is the Need for Changes in TCS?

    • Anomaly in Remittances: The Liberalised Remittance Scheme (LRS) allows individuals to remit a certain amount of money abroad without requiring prior approval from authorities. However, payments made through credit cards were not subject to the LRS limit, leading to an anomaly where significant foreign payments were being made without any restrictions.
    • Disproportionate Spending: The initial introduction of TCS on LRS remittances aimed to track foreign spending disproportionate to the reported income of individuals. It was an effort to ensure that individuals accurately disclose their foreign transactions and pay appropriate taxes on their foreign income.
    • Circumvention of the System: Despite the initial implementation of TCS, there were instances of individuals circumventing the tax collection process. This was done through various means such as splitting payments among multiple individuals, including minors and household staff, or absorbing the 5% tax as a cost without claiming it through tax returns.
    • Encouraging Tax Compliance: The intention behind TCS on credit card payments was also to encourage individuals to come forward and file tax returns. By imposing a tax collection mechanism, individuals are nudged to report their foreign income and fulfill their tax obligations.

    TCS

    Concerns over TCS on credit card payments

    • Increased Financial Burden: The higher TCS rate of 20% on certain categories, such as investments, gifts, donations, and overseas travel, has led to an increased financial burden for individuals making such payments. The higher tax rate may impact individuals’ disposable income and affect their spending patterns.
    • Impact on Foreign Travel: With the application of TCS on credit card payments for foreign travel, individuals may face additional costs and may need to adjust their travel budgets accordingly. This could discourage some individuals from undertaking foreign travel or limit their spending while abroad.
    • Administrative Challenges: The implementation of TCS on credit card payments poses administrative challenges for credit card companies, payment processors, and individuals. It requires proper mechanisms to collect and remit the tax, as well as ensure accurate reporting and compliance. Compliance with these requirements may add complexity to the payment process.
    • Concerns of Double Taxation: Some individuals express concerns about potential double taxation. They argue that since they are already paying taxes on their income, applying TCS on credit card payments can be seen as an additional tax burden on the same income.
    • Impact on Economic Growth: Critics argue that the higher TCS rate and additional tax burden on certain payments may hinder economic growth. It is feared that this could discourage investments, limit foreign spending, and affect sectors such as tourism and hospitality.
    • Perception of Tax Terrorism: The introduction of TCS on credit card payments has led to criticism of the overall tax system, with terms like “tax terrorism” being used. Critics argue that the tax collection measures may be seen as excessive and could create an atmosphere of fear and uncertainty among taxpayers.

    Facts for prelims: Concept box from Civilsdaily

    What is mean by Tax Terrorism?

    • Tax terrorism refers to a situation where taxpayers feel harassed, intimidated, or unfairly treated by tax authorities, leading to a perception of aggressive or punitive actions.
    • In simple words, it describes instances where taxpayers believe that the tax system or tax authorities are causing undue stress, fear, or anxiety.

    Illustration: Understand tax terrorism this way

    • Let’s say an individual receives a notice from the tax authority demanding extensive documentation and explanations for every financial transaction they have made over the past five years. The individual feels overwhelmed and stressed due to the complexity and scope of the request.
    • Despite providing the necessary information and cooperating fully, they face repeated audits, additional scrutiny, and prolonged delays in the resolution of their tax matters.
    • This experience leaves the individual feeling unfairly targeted and harassed by the tax authority, leading to a perception of tax terrorism.

    Way forward

    • Transparent Communication: The government should engage in transparent communication to clarify the rationale behind the implementation of TCS on credit card payments. Clear and accessible information about the purpose, impact, and benefits of the policy can help alleviate concerns and misconceptions among taxpayers.
    • Stakeholder Consultation: The government should actively engage with stakeholders, including taxpayers, industry associations, and experts, to understand their concerns and gather feedback. This can help in refining the policy and addressing any unintended consequences.
    • Review and Revision: Regular reviews of the TCS policy should be conducted to assess its impact on individuals, sectors, and the economy. Based on the findings, necessary revisions can be made to strike a balance between tax collection objectives and the concerns of taxpayers.
    • Simplification of Tax Regulations: Efforts should be made to simplify tax regulations and compliance procedures to reduce the burden on taxpayers. Clear and user-friendly guidelines can help individuals understand and fulfill their tax obligations more easily.
    • Taxpayer Education and Assistance: Providing adequate taxpayer education and assistance is crucial to ensure compliance and address concerns. The government should invest in educational campaigns, workshops, and online resources to enhance taxpayer awareness and understanding of tax laws and procedures.
    • Efficient Dispute Resolution: Establishing efficient and timely dispute resolution mechanisms can help address grievances and concerns raised by taxpayers. Timely resolution of tax disputes and appeals can foster trust in the tax system and alleviate the perception of tax terrorism.
    • Balance between Tax Collection and Economic Growth: The government should strike a balance between tax collection objectives and promoting economic growth. Careful consideration should be given to the potential impact of TCS on sectors such as tourism and investments to ensure that the measures do not hamper economic development.
    • Continual Monitoring and Evaluation: Regular monitoring and evaluation of the TCS policy, along with its impact on tax compliance, economic growth, and taxpayer sentiment, should be conducted. This will enable the government to make informed decisions and adjustments as needed.

    Conclusion

    • Misinterpretation of the recent announcement on TCS for credit card payments has led to unwarranted panic and exaggerated reactions. While concerns should be addressed constructively, it is essential to acknowledge the government’s efforts in simplifying the tax system, leveraging technology, reducing processing times, and resolving disputes. Collaboration between the government and taxpayers is crucial to fostering a fair, easy, and compliant taxation environment in the country.

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    Also read:

    Levying the Wealth tax to reduce income inequality

     

  • Poverty Eradication – Definition, Debates, etc.

    Bhopal’s Voluntary Local Review: A Step towards Localizing SDG’s in India

    Localizing

    Central Idea

    • Bhopal, the capital city of Madhya Pradesh, has achieved a significant milestone by becoming the first city in India to join the global movement on localizing the Sustainable Development Goals (SDGs). The city’s Voluntary Local Review (VLR), released recently, highlights Bhopal’s commitment to implementing the SDGs at the local level. This move demonstrates India’s commendable efforts in adopting and localizing the SDGs, with various states and union territories already taking steps in this direction

    What is Bhopal’s Voluntary Local Review (VLR)?

    • Bhopal’s Voluntary Local Review (VLR) is a comprehensive report released by the city of Bhopal, India, to showcase its progress and initiatives in implementing the Sustainable Development Goals (SDGs) at the local level.
    • It provides a detailed analysis of Bhopal’s development projects and their alignment with the SDGs across the three pillars of ‘people,’ ‘planet,’ and ‘prosperity.’
    • The report maps these projects to specific SDGs and presents an assessment of the city’s progress, achievements, and challenges in each area.

    Features of Bhopal’s VLR

    • Collaboration: The VLR is a result of collaboration between the Bhopal Municipal Corporation, UN-Habitat, and a collective of over 23 local stakeholders. This collaborative approach ensures a comprehensive and inclusive representation of Bhopal’s sustainable development efforts.
    • Mapping of Developmental Projects: Bhopal’s VLR maps 56 developmental projects to the SDGs across the three pillars of ‘people,’ ‘planet,’ and ‘prosperity.’ This mapping provides a clear understanding of how the city’s initiatives align with the specific goals and targets of the SDGs.
    • Focus on Priority Areas: The VLR identifies priority areas for Bhopal, with a particular emphasis on building basic infrastructure and resilience. This highlights the city’s strategic approach in addressing crucial issues and directing efforts towards areas that require immediate attention.
    • Quantitative Assessment: Bhopal’s VLR includes an in-depth quantitative assessment of city-level indicators under SDG 11 (Sustainable cities and communities). This assessment evaluates the city’s performance in areas such as solid waste management practices, public transportation, and per capita availability of open spaces.
    • Identification of Challenges: The VLR acknowledges the challenges faced by Bhopal in achieving certain SDG targets. It highlights areas where the city needs to work harder, such as adequate shelter provision, air pollution control, city planning capacity, and equitable distribution and accessibility of open spaces. This identification of challenges allows for targeted efforts to address these specific issues.
    • Leadership and Stakeholder Engagement: The VLR emphasizes the leadership role of Mayor and efforts in engaging the city’s residents throughout the VLR process. This demonstrates the importance of stakeholder participation and inclusivity in driving sustainable development initiatives.
    • Localized Approach: Bhopal’s VLR recognizes the unique local context and capacity constraints faced by Indian cities. It acknowledges that a comprehensive VLR covering all SDGs may be challenging for cities with limited resources and data availability. Therefore, the VLR allows for flexibility, enabling cities to choose specific SDGs for a detailed review and adapt national indicators to reflect the city’s local realities.

    The Importance of Localizing Sustainable Development Goals (SDGs)

    • Contextualization: Localizing the SDGs allows cities, regions, and communities to adapt the global goals to their specific local contexts. Each locality has unique challenges, priorities, and resources. By localizing the SDGs, governments, organizations, and stakeholders can tailor strategies and interventions to address the specific needs of their communities, making them more relevant and effective.
    • Proximity to the People: Local governments and communities are closest to the people they serve. They have a better understanding of the local needs, aspirations, and realities of their residents. By localizing the SDGs, decision-making processes become more participatory and inclusive, ensuring that the voices and perspectives of the local population are taken into account.
    • Holistic Approach: The SDGs address a broad range of interconnected social, economic, and environmental challenges. Localizing the goals allows for a holistic approach to sustainable development, considering the interdependencies and synergies between different sectors and issues. It encourages integrated and comprehensive strategies that tackle multiple challenges simultaneously, leading to more sustainable and equitable outcomes.
    • Collaboration and Partnership: Localizing the SDGs fosters collaboration and partnership among various stakeholders at the local level. Governments, civil society organizations, businesses, academia, and citizens can come together to work towards common goals, leveraging their respective strengths, expertise, and resources. This multi-stakeholder approach promotes collective action, knowledge-sharing, and innovation, leading to more effective and sustainable solutions.
    • Innovation and Experimentation: Localizing the SDGs encourages innovation and experimentation. Local governments and communities can explore new approaches, policies, and practices to address complex challenges. They can pilot innovative solutions, learn from successes and failures, and share their experiences with other localities, contributing to a global knowledge exchange and learning process.
    • Monitoring and Accountability: Localizing the SDGs facilitates monitoring and accountability mechanisms at the local level. By setting local targets, indicators, and progress tracking systems, governments and stakeholders can monitor the implementation of the goals and measure their impact on the ground. This localized monitoring promotes transparency, accountability, and data-driven decision-making, ensuring that progress towards sustainable development is effectively measured and evaluated.
    • Global Impact: While the SDGs are a global agenda, their achievement ultimately depends on action at the local level. Localizing the goals is essential for aggregating local actions and initiatives to create significant impact at the global scale. When cities, regions, and communities across the world localize the SDGs, they contribute to the collective effort of achieving sustainable development globally.

    Facts for prelims

    India’s progress towards achieving SDGs so far

    • SDG 1 (No Poverty): India has made significant progress in reducing poverty, with the poverty rate declining from 21.9% in 2011-12 to 4.4% in 2020. The government’s efforts to provide financial inclusion and social protection schemes have contributed to this progress.
    • SDG 2 (Zero Hunger): India has made progress in reducing hunger, with the prevalence of undernourishment declining from 17.3% in 2004-06 to 14% in 2017-19.
    • SDG 3 (Good Health and Well-being): India has made progress in improving maternal and child health, with maternal mortality ratio declining from 167 per 100,000 live births in 2011-13 to 113 in 2016-18.
    • SDG 4 (Quality Education): India has made progress in improving access to education, with the gross enrolment ratio for primary education increasing from 93.4% in 2014-15 to 94.3% in 2019-20.
    • SDG 5 (Gender Equality): India has made progress in improving gender equality, with the sex ratio at birth increasing from 918 in 2011 to 934 in 2020.

    Notable examples where cities and local governments have successfully localized the SDGs

    • New York City, United States: New York City developed an SDG framework called “OneNYC” to align its local goals and initiatives with the SDGs. The framework focuses on various areas, including reducing poverty, promoting sustainability, addressing climate change, and improving quality of life.
    • Bristol, United Kingdom: Bristol was one of the first cities to create a localized SDG plan known as the “Bristol One City Plan.” The plan integrates the SDGs into the city’s strategic priorities, such as reducing inequality, promoting sustainable economic growth, and addressing climate change.
    • Kitakyushu, Japan: Kitakyushu, a city in Japan, has implemented the “Kitakyushu SDGs City Vision” to align its local strategies with the SDGs. The vision focuses on areas such as resource efficiency, waste management, renewable energy, and sustainable urban development. Kitakyushu’s successful experience in environmental sustainability has made it a global leader in eco-industrial development.
    • Medellín, Colombia: Medellín has embraced the SDGs through its “Medellín Sustainable Development Goals 2030” strategy. The city has aligned its policies, programs, and projects with the SDGs, focusing on social inclusion, education, public transportation, urban development, and reducing violence. Medellín’s approach highlights the importance of social innovation and participatory governance in achieving sustainable development.
    • Barcelona, Spain: Barcelona has integrated the SDGs into its urban development strategy known as “Barcelona City Council 2030 Agenda.” The city’s approach emphasizes social justice, gender equality, environmental sustainability, and inclusive economic growth.

    Opportunities for Indian cities in localizing the SDGs

    • Tailoring to Local Context: Localizing the SDGs allows Indian cities to adapt the global goals to their specific needs and realities. By identifying local priorities and strategies, cities can address issues such as poverty, education, healthcare, infrastructure, environmental sustainability, and urban planning in a manner that is most relevant to their local populations.
    • Leveraging Local Innovation: Localizing the SDGs provides an opportunity for cities to leverage their local innovation ecosystems to develop creative solutions to sustainable development challenges. By fostering collaboration between local businesses, startups, research institutions, and communities, cities can drive innovation and implement sustainable practices that can have a transformative impact.
    • Enhancing Local Governance and Participation: Localizing the SDGs empowers local governments to strengthen their governance systems and promote participatory decision-making. It encourages local authorities to engage citizens, civil society organizations, and other stakeholders in the planning, implementation, and monitoring of sustainable development initiatives. This participatory approach can lead to more inclusive and effective governance, as well as increased accountability and transparency.
    • Sharing Best Practices and Learning: By sharing successful initiatives, innovative approaches, and lessons learned, cities can create a knowledge-sharing network, fostering collaboration and replication of effective strategies. This knowledge exchange can lead to improved policy-making, enhanced capacity-building, and accelerated progress towards the SDGs.
    • Attracting Investments and Partnerships: Localizing the SDGs can help Indian cities attract investments, forge partnerships, and access funding opportunities. By demonstrating their commitment to sustainable development and showcasing their achievements, cities can attract investors, businesses, and development organizations that are aligned with the SDGs. Collaborative partnerships can bring in resources, expertise, and technical assistance to support the implementation of sustainable projects and initiatives.
    • Global Recognition and Collaboration: Localizing the SDGs positions Indian cities as active participants in the global sustainable development agenda. It offers an opportunity to gain global recognition for their efforts and innovations. By actively engaging with international platforms, networks, and initiatives focused on sustainable urban development, Indian cities can collaborate with other cities, share experiences, and contribute to global efforts in achieving the SDGs

    Conclusion

    • Bhopal’s pioneering VLR sets an inspiring precedent for other Indian cities to embrace localisation and actively contribute to the SDGs. Localizing the SDGs provides Indian cities with an invaluable opportunity to address local challenges, tailor strategies to their specific contexts, and engage stakeholders in decision-making processes. By following Bhopal’s lead Indian cities can create a more inclusive, resilient, and prosperous future for their residents and leave a lasting impact on the global map of sustainable development.

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    Also read:

    Sustainable Development Goals (SDGs): India’s Progress Analysis

     

  • RBI Notifications

    RBI to pull out ₹2000 notes from active circulation

    2000

    Central Idea

    • The Reserve Bank of India (RBI) has decided to withdraw ₹2000 denomination banknotes from circulation as part of its “Clean Note Policy.”
    • The withdrawal is similar to a previous withdrawal of notes in 2013-2014 (and not the demonetization).

    Legal Tender Status of ₹2,000 Banknotes

    • ₹2000 banknotes will continue to maintain their legal tender status.
    • People can use ₹2000 banknotes for transactions and accept them as payment.
    • However, the RBI encourages depositing or exchanging the notes by September 30, 2023.

    About the ₹2000 Notes

    • The ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934.
    • It primarily aimed to meet the currency requirement of the economy in an expeditious manner after withdrawal of the legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time.

    Reasons for withdrawal

    • Demonetization purpose served: Printing of ₹2000 notes was stopped in 2018-19 as other denominations became available in adequate quantities.
    • Clean Note Policy: This aims to provide good-quality currency notes with enhanced security features and withdraw soiled notes from circulation.
    • Ending timespan: Majority of the ₹2000 notes were issued prior to March 2017 and have reached their estimated lifespan of 4-5 years.
    • Disappeared from circulation: This denomination is not commonly used for transactions, and there is sufficient stock of banknotes in other denominations to meet public requirements.

    Withdrawal process

    • People can deposit ₹2,000 notes into their bank accounts or exchange them for banknotes of other denominations at any bank branch.
    • The usual deposit process without restrictions and subject to applicable statutory provisions applies.
    • Banks have been directed to provide deposit and exchange facilities for ₹2,000 notes until September 30, 2023.
    • The facility for exchange up to ₹20,000 at a time will be available at banks and RBI’s Regional Offices from May 23, 2023.
    • Banks are instructed to stop issuing ₹2,000 notes immediately.

    Impact and financial analysis

    • Deposit accretion of banks may improve in the short term, similar to the demonetization period.
    • Improved deposit rates may reduce pressure on interest rate hikes and lead to moderation in short-term interest rates.

    Clean Note Policy

    Previously, banknotes issued before 2005 were withdrawn due to fewer security features.

    Notes issued before 2005 are still legal tender but no longer in circulation to maintain consistency with international practices.

    Key issues

    • Individuals can seek multiple exchanges in packets of ₹20,000, but this may attract attention from enforcement agencies and the Income-tax Department.
    • Large sums of money in ₹2,000 notes may be difficult to exchange.
    • It is likely to witness chaos and long queues in bank branches.

    FAQs: Exchanging and depositing ₹2,000 Banknotes

    • Individuals should approach bank branches for depositing or exchanging ₹2,000 banknotes.
    • Deposit and exchange facilities will be available at banks until September 30, 2023.
    • Exchange facilities will also be available at 19 RBI Regional Offices.
    • There is a limit of ₹20,000 for each exchange transaction.
    • Account holders can exchange up to ₹4,000 per day through business correspondents.
    • Deposits into bank accounts have no restrictions, but compliance with KYC norms and other regulatory requirements is necessary.
    • From May 23, 2023, people can approach bank branches or RBI Regional Offices to exchange their ₹2,000 notes.

     

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  • Capital Markets: Challenges and Developments

    What are Global Depository Receipts (GDRs)?

    Central Idea: Tata Consumer Products has announced its decision to delist its global depository receipts (GDRs) from the London Stock Exchange and Luxembourg Stock Exchange.

    What are GDRs?

    • GDRs are financial instruments used by companies to raise capital from international investors.
    • They represent a bundle of shares in the company and are typically listed and traded on international stock exchanges.
    • GDRs provide a way for companies to access global capital markets and attract investments from foreign investors without directly listing their shares on multiple stock exchanges around the world.

    GDR Regulation in India

    • In India, GDRs can be issued by Indian companies that meet the eligibility criteria set by the SEBI.
    • SEBI sets guidelines and regulations for companies wishing to issue GDRs typically include the following:
    1. Listing: The company must be listed on a recognized stock exchange in India.
    2. Track Record: The company should have a track record of profitability for a certain period as specified by SEBI.
    3. Good Corporate Governance: The company must comply with corporate governance norms and disclose relevant financial and non-financial information.
    4. Regulatory Compliance: The company must comply with all applicable laws and regulations, including those related to securities and foreign exchange.
    5. Approval from Regulatory Authorities: The company needs to obtain necessary approvals from SEBI and other relevant authorities for the issuance of GDRs.

    Need for GDR

    • Capital Raising: GDRs offer a means for companies to raise capital from international investors, helping them finance investments, expansion projects, acquisitions, or debt repayment.
    • Global Investor Base: GDRs allow companies to access a diverse range of international investors, including institutional investors, hedge funds, and retail investors, thereby expanding their shareholder base.
    • Cost Efficiency: GDRs can be a cost-effective alternative to traditional methods of listing shares on multiple exchanges, as they enable companies to tap into global capital markets without the need for separate listings in different countries.
    • Simplified Trading and Settlement: GDRs facilitate easy trading and settlement for international investors, as they eliminate the need to navigate local market regulations and procedures.
    • Risk Mitigation: GDRs can provide a degree of risk mitigation for companies by reducing their exposure to local market fluctuations and volatility, as they offer access to a more diversified investor base.
    • Arbitrage Opportunities: GDRs can create arbitrage opportunities for investors who can exploit price discrepancies between the GDRs and the underlying shares listed on the domestic stock exchange.

    Benefits offered

    • Access to Global Capital: GDRs enable Indian companies to access a larger pool of international capital and diversify their funding sources beyond domestic markets.
    • Increased Liquidity: Listing GDRs on international exchanges provides Indian companies with broader exposure and enhances the liquidity of their shares, as they become accessible to a wider range of investors.
    • Enhanced Global Visibility: GDRs help raise the profile of Indian companies on a global scale, increasing their visibility and attracting the attention of international investors and analysts.
    • Currency Diversification: GDRs can also provide an opportunity for Indian companies to diversify their exposure to foreign currencies, as GDRs are often denominated in a currency other than the company’s home currency.

     

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  • Water Management – Institutional Reforms, Conservation Efforts, etc.

    Arsenic Contamination in India

    arsenic

    Central Idea: A recent peer-reviewed study suggests that even low levels of arsenic consumption can affect cognitive function in children, adolescents, and young adults.

    Arsenic Contamination

    • Arsenic is a highly toxic element naturally present in the environment.
    • Contaminated water, particularly groundwater, is a major source of arsenic exposure.
    • Long-term arsenic exposure can lead to various health issues, including cancer, skin lesions, cardiovascular disease, and negative impacts on cognitive development.

    Menace in India

    • Arsenic contamination in groundwater is one of the most crippling issues in the drinking water scenario of India.
    • According to the latest report of the Central Ground Water Board (CGWB), 21 states across the country have pockets with arsenic levels higher than the BIS stipulated permissible limit of 0.01 milligram per litre (mg/l).
    • The states along the Ganga-Brahmaputra-Meghna (GBM) river basin — Uttar Pradesh, Bihar, Jharkhand, West Bengal and Assam — are the worst affected by this human-amplified geogenic occurrence.
    • In India, arsenic contamination was first officially confirmed in West Bengal in 1983.
    • Close to four decades after its detection, the scenario has worsened.
    • About 9.6 million people in West Bengal, 1.6 million in Assam, 1.2 million in Bihar, 0.5 million in Uttar Pradesh and 0.013 million in Jharkhand are at immediate risk from arsenic contamination in groundwater.

    Key findings of the recent study

    (1) Arsenic impact on behaviour

    • The study found that individuals exposed to arsenic had reduced grey matter and weaker connections within key regions of the brain associated with cognitive functions.
    • Chronic exposure to arsenic could have significant consequences at a population level, leading to increased school failures, diminished economic productivity, and higher risks of criminal and antisocial behavior.

    (2) Arsenic Exposure and Socioeconomic Factors

    • As previous studies have shown, arsenic exposure is particularly harmful to the poor.
    • The recent study reaffirms that economically and nutritionally disadvantaged individuals experience greater cognitive impairment from arsenic exposure.
    • The impact of arsenic on impairing cognition is more pronounced at a collective level rather than at an individual level.

    Government Initiatives to address Arsenic Contamination

    • Governments in Bihar and West Bengal have taken steps to address arsenic contamination since the 1990s.
    • Strategies include promoting piped water access, installing arsenic removal plants, and encouraging groundwater extraction from deeper aquifers with lower arsenic levels.
    • The goal is to minimize arsenic exposure and mitigate its health impacts in affected regions.

    Possible solutions

    Some of the management options include

    • Uses of surface water sources
    • Exploring and harnessing alternate arsenic-free aquifer
    • Removal of arsenic from groundwater using arsenic treatment plants/filters
    • Adopting rainwater harvesting/ watershed management practices.

     

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  • Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

    National Quantum Mission: Unlocking India’s Potential in Quantum Technology

    National Quantum Mission

    Central Idea

    • India’s focus on developing a strong technology base is gaining momentum with the upcoming National Quantum Mission. This mission holds the potential to revolutionize various sectors, including defense, energy, environment, healthcare, and civil applications.

    All you need to know about National Quantum Mission

    • The National Quantum Mission is an ambitious initiative undertaken by the Government of India to propel the country’s advancements in the field of quantum technology.
    • It adopts a project-driven multi-disciplinary approach, fostering fundamental discoveries, imaginative engineering, and entrepreneurial initiatives.
    • Leveraging India’s evolving scientific infrastructure and aligning with national mandates, the mission aims to accelerate research, capacity building, and collaboration across institutions.

    The objectives of the National Quantum Mission

    1. Developing indigenous quantum technologies and infrastructure.
    2. Promoting collaboration between academia, industry, and research institutions.
    3. Building a strong ecosystem for research and development in quantum technology.
    4. Creating a skilled workforce in quantum science and technology.
    5. Accelerating the commercialization and adoption of quantum-based products and services.

    Key aspects of the mission

    1. Quantum Computing: Advancing quantum computing capabilities for solving complex problems and enhancing computational efficiency.
    2. Quantum Communication: Developing secure and high-speed quantum communication networks to safeguard sensitive information.
    3. Quantum Sensing: Utilizing quantum principles for ultra-precise measurements in fields such as navigation, imaging, and environmental monitoring.
    4. Quantum Metrology: Enhancing measurement accuracy by exploiting quantum properties, leading to advancements in metrology and standards.
    5. Quantum Materials and Devices: Investigating and harnessing the unique properties of quantum materials to develop advanced devices for diverse applications.

    Facts for prelims

    Nobel Prize in Physics 2022

    • The Nobel Prize in Physics 2022 was awarded jointly to Alain Aspect, John F. Clauser and Anton Zeilinger for experiments with entangled photons, establishing the violation of Bell inequalities and pioneering quantum information science.
    • The Nobel Prize in Physics 2022 recognizes the groundbreaking work of these three physicists, who have demonstrated the power of entanglement to revolutionize our understanding of the universe.
    • Entanglement is a phenomenon in quantum mechanics that occurs when two particles are linked together in such a way that they share the same fate, even when they are separated by a large distance.
    • This seemingly magical connection has profound implications for our understanding of reality, and it has led to the development of new technologies such as quantum computers and quantum cryptography.

    The Significance of Quantum Devices

    • Enabling Quantum Computing: Quantum computers rely on quantum devices, such as qubits, to perform quantum computations. These devices can represent and manipulate quantum information, allowing for parallel processing and exponential speed-up in solving complex problems.
    • Facilitating Quantum Communication: Quantum devices enable the generation, manipulation, and detection of quantum states, which are used for secure transmission of information. Devices like quantum transmitters, receivers, and entangled photon sources are vital components in quantum communication protocols such as quantum key distribution (QKD).
    • Enhancing Quantum Sensing and Metrology: Quantum devices enable precise measurements of physical quantities, such as magnetic fields, gravitational waves, and temperature, with exceptional sensitivity and accuracy. Quantum sensors based on devices like superconducting quantum interference devices (SQUIDs) and atomic magnetometers have the potential to revolutionize fields like navigation, medical diagnostics, and environmental monitoring.
    • Supporting Quantum Cryptography: Quantum devices are integral to the field of quantum cryptography, which focuses on secure communication based on quantum principles. Devices like single-photon detectors, quantum random number generators, and quantum key distribution systems are used to implement cryptographic protocols that offer provable security based on the laws of quantum mechanics.
    • Driving Fundamental Research: Quantum devices are essential tools for studying fundamental phenomena in quantum physics. They allow researchers to manipulate and control quantum systems, observe quantum behaviors, and conduct experiments to validate quantum theories.

    Challenges for India’s National Quantum Mission

    • Research and Development: Quantum technology is a complex and rapidly evolving field, requiring extensive research and development efforts. Developing cutting-edge quantum technologies and pushing the boundaries of scientific knowledge pose challenges in terms of funding, expertise, and access to advanced infrastructure and equipment.
    • Skilled Workforce: Quantum technology demands a highly skilled workforce with expertise in quantum physics, engineering, and related disciplines. Developing and retaining a talented pool of researchers, scientists, and engineers proficient in quantum technologies is a challenge, as it requires specialized training programs, educational initiatives, and collaboration between academia and industry.
    • Infrastructure and Resources: Quantum technology requires advanced infrastructure, including specialized laboratories, fabrication facilities, and high-performance computing resources. Establishing and maintaining such infrastructure is a challenge, as it requires substantial investments and ongoing upgrades to keep pace with advancements in the field.
    • International Competition: The development of quantum technology is a global race, with several countries investing heavily in research and development. India faces competition from other nations that have made significant progress in quantum technology, such as the United States, China, and European countries. Maintaining a competitive edge and staying at the forefront of quantum advancements is a challenge.
    • Standardization and Interoperability: Quantum technology is still in its nascent stage, and there is a lack of standardized protocols and frameworks. Achieving interoperability among different quantum systems and ensuring compatibility across platforms is a challenge.
    • Funding and Resource Allocation: Adequate funding is critical for the success of the National Quantum Mission. Securing sustained funding and effective resource allocation, both from government sources and private investments, is a challenge.
    • Ethical and Societal Implications: Quantum technology raises ethical, legal, and societal considerations. The development and application of quantum technologies, such as quantum computing and cryptography, may have significant societal implications, including data privacy, cybersecurity, and societal disruption. Addressing these concerns and establishing ethical frameworks and guidelines is a challenge.
    • Collaboration and Partnerships: Quantum technology development requires collaboration among academia, research institutions, industry, and government bodies. Building effective partnerships, fostering knowledge sharing, and promoting collaboration across different sectors and organizations is a challenge.

    Way forward

    • Robust Funding: Ensure sustained and adequate funding for the mission to support research, development, infrastructure building, and talent acquisition. Establish funding mechanisms that prioritize quantum technology initiatives and encourage public-private partnerships to leverage industry expertise and resources.
    • Research Collaboration: Foster collaboration between academia, research institutions, and industry both domestically and internationally. Encourage knowledge sharing, joint research projects, and technology transfer to accelerate the development of quantum technologies.
    • Skill Development: Focus on capacity building and skill development programs to nurture a skilled workforce in quantum science, engineering, and technology. Establish training initiatives, educational programs, and centers of excellence to develop talent and expertise in the field.
    • Infrastructure Development: Invest in state-of-the-art infrastructure, including specialized laboratories, testing facilities, and computational resources. Ensure the availability of advanced equipment and resources across different regions of the country to support research and development activities.
    • Regulatory Frameworks: Establish robust regulatory frameworks and policies to address legal, ethical, and security concerns related to quantum technology. Collaborate with international organizations and experts to develop best practices and standards for responsible development and deployment of quantum technology.
    • Industry Engagement: Encourage industry participation and engagement in quantum technology initiatives. Foster innovation ecosystems, provide support mechanisms for startups and entrepreneurs, and promote collaboration between academia and industry for technology commercialization.
    • International Collaboration: Strengthen international collaborations and partnerships in quantum technology. Establish networks with leading global institutions and organizations to exchange knowledge, share resources, and collaborate on research projects.
    • Public Awareness and Outreach: Increase public awareness about the potential of quantum technology and its impact on various sectors. Conduct outreach programs, public lectures, and awareness campaigns to engage and educate the public about the benefits and applications of quantum technology.

    Concept box from civilsdaily

    Understand in simple words

    Quantum:

    • Quantum refers to the smallest possible unit of something. It is the fundamental building block or unit of energy, matter, or information in the field of physics.
    • Quantum is often associated with the principles of quantum mechanics, which is a branch of physics that describes how particles and energy behave at the atomic and subatomic levels.

    Quantum technology:

    • Quantum technology is the application of the principles of quantum mechanics to develop new technologies that harness the unique properties of quantum particles.
    • It involves manipulating and controlling these particles to perform tasks that are not possible with classical technology.
    • Quantum technology takes advantage of phenomena like superposition and entanglement, which allow particles to exist in multiple states simultaneously or become interconnected regardless of distance. These properties enable quantum systems to store and process information in ways that surpass the capabilities of classical systems.

    Conclusion

    • The National Quantum Mission’s focus on quantum materials and devices marks a significant step towards India’s technological advancements. Through strategic investments, collaborative research, and an efficient R&D ecosystem, India can harness the power of quantum technology, propel innovation, and achieve self-reliance across multiple sectors. The mission’s success will position India as a global leader in quantum materials and devices, shaping a brighter future for the country.

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    Also read:

    Making India’s Quantum Cyberspace resilient
  • Indian Ocean Power Competition

    India’s Balancing Act: Navigating Global Challenges and Multilateral Engagements

    Global

    Central idea

    • Prime Minister Narendra Modi’s upcoming week-long journey to Japan, Papua New Guinea, and Australia signifies India’s active participation in global affairs. As he engages with G-7 leaders in Hiroshima, Japan, and travels to other countries, bilateral issues will take a back seat to India’s position in the multilateral sphere. With an increasingly polarized world and mounting challenges such as the Russian war in Ukraine and China’s geopolitical influence, India must strike a careful balance.

    India’s engagement with Quad and the Indo-Pacific Coalition

    • Security Cooperation: The Quad countries, including India, collaborate on security issues in the Indo-Pacific region. This includes intelligence sharing, joint military exercises, and enhancing maritime domain awareness to ensure a free and open Indo-Pacific.
    • Maritime Security: As maritime nations, the Quad members aim to promote maritime security, freedom of navigation, and respect for international law, particularly in the contested waters of the Indo-Pacific. They work towards preventing conflicts, promoting stability, and addressing challenges such as illegal fishing, piracy, and maritime territorial disputes.
    • Connectivity Initiatives: The Quad focuses on promoting transparent, sustainable, and quality infrastructure development in the Indo-Pacific region. This includes collaborative efforts to enhance connectivity, digitalization, and economic integration, fostering economic growth and regional prosperity.
    • Supply Chain Resilience: Recognizing the importance of secure and resilient supply chains, the Quad aims to diversify supply chains and reduce dependence on a single country or region. This includes exploring opportunities for cooperation in critical sectors such as technology, healthcare, pharmaceuticals, and semiconductors.
    • Humanitarian Assistance and Disaster Relief: The Quad members collaborate in providing humanitarian assistance and disaster relief during crises and natural disasters in the Indo-Pacific region. This cooperation ensures a coordinated response, timely assistance, and efficient resource mobilization.
    • Vaccine Diplomacy: In response to the global COVID-19 pandemic, the Quad countries, including India, have collaborated on vaccine distribution and production. This initiative aims to ensure equitable access to vaccines in the region, demonstrating solidarity and cooperation in addressing public health challenges.
    • Economic and Trade Cooperation: The Quad members explore opportunities for enhancing economic and trade ties. They seek to promote a free, open, and rules-based trading system, address trade barriers, and facilitate economic growth and prosperity in the Indo-Pacific.
    • Regional Stability and Rules-Based Order: The Quad and Indo-Pacific Coalition share a common goal of promoting regional stability and upholding a rules-based international order. This includes respect for sovereignty, peaceful resolution of disputes, and adherence to international law.

    India’s position in the multilateral sphere

    • Global Leadership: As the world’s largest democracy and a rising global power, India’s voice carries weight in multilateral forums. It provides leadership and represents the interests of developing countries, particularly in areas such as poverty alleviation, sustainable development, and climate change.
    • Regional Integration: India actively promotes regional integration and cooperation, both within South Asia and in the broader Indo-Pacific region. It seeks to enhance connectivity, trade, and people-to-people exchanges, contributing to regional stability, economic growth, and collective security.
    • South-South Cooperation: India actively engages in South-South Cooperation, which involves collaboration among developing countries to address common challenges and promote economic growth. India shares its expertise in areas such as agriculture, healthcare, technology, and capacity-building, supporting the development efforts of other nations.
    • Global Development Initiatives: India is actively involved in global development initiatives, such as the Sustainable Development Goals (SDGs) set by the United Nations. It contributes to discussions on poverty eradication, education, healthcare, gender equality, and sustainable development, aiming to foster inclusive growth and reduce global disparities.
    • Nuclear Non-Proliferation: India has positioned itself as a responsible nuclear power and advocates for global nuclear disarmament. It actively participates in discussions on nuclear non-proliferation, safeguards, and peaceful uses of nuclear energy, while also asserting its right to pursue civilian nuclear energy for development purposes.
    • Global Health Initiatives: India plays a vital role in global health initiatives, particularly in the context of access to affordable medicines and vaccines. It actively engages in discussions related to public health, pharmaceutical regulations, and the provision of healthcare to underserved populations, demonstrating its commitment to global health equity.
    • Peacekeeping Operations: India is one of the largest contributors to United Nations peacekeeping missions, showcasing its commitment to international peace and security. Indian peacekeepers have been deployed to various conflict zones, helping maintain stability and providing humanitarian assistance in challenging environments.
    • Non-Aligned Movement (NAM): India has been a prominent member of the Non-Aligned Movement, a group of nations that seek to maintain their independence and avoid alignment with any major power bloc. India’s participation in NAM showcases its commitment to an independent foreign policy and its role as a bridge between different ideological groupings.

    key aspects of India’s skillful balancing act

    • Strategic Autonomy: India maintains strategic autonomy by pursuing an independent foreign policy that prioritizes its national interests. It engages with multiple countries and groups, avoiding over-reliance on any single power bloc or alliance.
    • Non-Alignment and Multi-Alignment: While India was a founding member of the Non-Aligned Movement, it has adopted a multi-aligned approach in recent years. India engages with a diverse range of partners, including major powers, regional groupings, and developing countries, forging partnerships based on mutual interests and shared values.
    • Diversifying Partnerships: India seeks to diversify its partnerships across regions and countries. It engages with both Western and non-Western nations, fostering relationships with the United States, European Union, ASEAN, African Union, Gulf countries, and others. This diversity helps India maintain a balanced approach and access multiple avenues for collaboration.
    • Regional Engagements: India actively participates in regional initiatives and organizations to promote stability and cooperation. It engages in platforms such as SAARC, BIMSTEC, IORA, and ASEAN-led mechanisms, fostering regional integration, connectivity, and addressing common challenges.
    • Balancing Major Powers: India skillfully navigates its relationships with major powers like the United States, Russia, China, and others. It seeks to maximize its benefits while safeguarding its national interests and maintaining strategic autonomy. This approach allows India to leverage opportunities and manage any potential risks associated with these relationships.
    • Counterterrorism Cooperation: India collaborates with various countries and international organizations in the fight against terrorism. It shares intelligence, strengthens border security, and promotes cooperation to combat terrorist networks and extremist ideologies.
    • Economic Diplomacy: India actively engages in economic diplomacy, expanding trade and investment ties with different countries and regions. It participates in regional and global economic forums, negotiates trade agreements, and fosters economic cooperation, contributing to its growth and development objectives.
    • Global Governance Reforms: India advocates for reforms in global governance institutions to reflect contemporary realities. It seeks a more inclusive and representative international order, including reforms in the United Nations Security Council and international financial institutions.

    Challenges and Potential Disruptions India’s skillful balancing act

    • Regional Conflicts: Ongoing regional conflicts, such as the India-Pakistan dispute over Kashmir, pose a challenge to India’s balancing act. Escalations or incidents along the border can strain relationships with neighboring countries and divert attention from broader multilateral engagements.
    • Geopolitical Rivalries: The intensifying geopolitical rivalries, particularly between major powers like the United States, China, and Russia, can complicate India’s balancing efforts. India needs to navigate these rivalries carefully to avoid being drawn into conflicts or aligning too closely with any particular power.
    • Border Security Concerns: India shares borders with countries like China and Pakistan, which have witnessed periodic tensions and border disputes. Any escalation or security threats along these borders can disrupt India’s diplomatic engagements and require a reevaluation of its strategic priorities.
    • Terrorism and Security Challenges: India faces persistent terrorism threats, both domestically and regionally. Terrorist attacks or security challenges can divert resources and attention, affecting India’s capacity to fully engage in multilateral forums and initiatives.
    • Economic Vulnerabilities: India’s economic vulnerabilities, including issues such as trade imbalances, supply chain disruptions, and global economic downturns, can impact its ability to maintain a balanced foreign policy. Economic challenges may require India to reassess its priorities and engagements with various countries.
    • Domestic Political Considerations: Domestic political developments and public opinion can shape India’s foreign policy decisions. Changes in government, electoral cycles, or shifts in public sentiment can influence the direction and priorities of India’s diplomatic engagements.
    • International Norms and Pressure: India may face pressure to align with certain international norms or positions, particularly on issues such as human rights, climate change, or nonproliferation. Striking a balance between international expectations and its own national interests can be a challenge
    • Unforeseen Events: Unforeseen events, such as natural disasters, public health emergencies, or sudden geopolitical shifts, can disrupt India’s diplomatic engagements and require immediate attention and resources.

    Conclusion

    • India’s proactive engagement, pursuit of strategic partnerships, and commitment to a rules-based international order position it as a respected global actor. Its diplomatic endeavors in multilateral forums, regional initiatives, and global governance reform contribute to shaping the global discourse and addressing pressing global challenges.

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    Also read:

    India’s G20 Presidency and Disaster Risk Management

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