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  • The ANRF plan has got off on the wrong foot  

    Why in the News? 

    In 2023, the Anusandhan National Research Foundation (ANRF) Bill was passed by both Houses of Parliament, heralding a significant new initiative aimed at promoting and advancing research in India, particularly within the country’s universities and colleges.

    About 2019 National Research Foundation (NRF) Project Report

    • Objective: The 2019 NRF project report emphasized the goal of seeding, growing, and facilitating research in India, particularly within universities and colleges.
    • Aim: The project aimed to create an environment where research could thrive free from bureaucratic constraints, providing a funding boost and fostering collaboration with industry partners.
    • Scope and Structure: NRF will have five major divisions: Sciences, Technology, Social Sciences, Humanities, and Arts
    • Priority: A top priority mentioned in the report was “growing outstanding research cells already existing at State Universities.”

     

    Lack of Industry Representation in India:

    • Governing Bodies Composition: The ANRF Governing Board and Executive Council lack representation from key organizations, such as Central and State universities or colleges.
    • Current Members: Members primarily include Secretaries from various government science departments, directors of top research institutions, and international figures, but not from Indian industry or local academia.
    • Industry and Academia Input: There is a critical need for representatives who understand the practical challenges and bottlenecks of the current university system and have ground-level experience.
    • Diversity Issues: There is minimal representation from the industry and a lack of diversity, with the sole industry representative being an Indian-American based in Silicon Valley and the only woman representative being the Secretary of the DSIR.

    R&D underfunding:

    • Current Funding Levels: India significantly underfunds research and development, allocating less than 1% of GDP to R&D. There is a pressing need to increase this to at least 4% to make Indian innovation globally competitive.
    • Systemic Overhaul: The current funding system requires a significant overhaul to boost research. This includes implementing a robust grant management system, ensuring timely disbursal of funds, and minimizing bureaucratic hurdles at both the funding body and grantee institutions.
    • Grant and Fellowship Disbursal: Timely disbursal of research grants and student fellowships is crucial. The aim should be a quick turnaround time of less than six months between application and fund disbursal to maintain the momentum of research activities.
    • Flexibility in Spending: Researchers need flexibility in spending research funds. The current system’s stringent general financial rules (GFR) and the requirement to use the Government e-marketplace (GeM) portal can hinder efficient resource utilization.
    • Diverse and Competent Leadership: The ANRF should be staffed with diverse representatives from practising natural and social scientists, young entrepreneurs, and women.

    Other steps taken by the Government: 

    • Atal Innovation Mission (AIM): It is a flagship initiative to promote innovation and entrepreneurship in the country. It aims to create an ecosystem for innovation and provide support to startups through incubators, accelerators, and mentorship programs.
    • Impacting Research Innovation and Technology (IMPRINT) Program: IMPRINT is a joint initiative of the Ministry of Education and the Ministry of Science and Technology to promote translational research.
    • Uchhatar Avishkar Yojana (UAY): UAY is a scheme to promote industry-specific need-based research in premier institutions.

     

    Conclusion: The ANRF should actively involve representatives from both Indian industry and academia in its Governing Board and Executive Council. This inclusion will ensure that decision-making processes are informed by practical insights and ground-level experiences.

    Mains PYQ: 

    Q  Scientific research in Indian universities is declining, because a career in science is not as attractive as are business professions, engineering or administration, and the universities are becoming consumer-oriented. Critically comment. (UPSC IAS/2014)

  • What does the Karnataka Bill promise gig workers?    

    Why in the News?

    The Karnataka government released the draft of the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, becoming the second Indian state to take such an initiative, following Rajasthan.

    Who are the Gig workers?

    Gig workers are independent contractors, freelancers, or temporary workers who are hired for specific projects or tasks, often through online platforms, rather than being employed in traditional long-term employer-employee relationships.

    Key highlight of the Bill proposed for the welfare of gig workers:

    • Social Security and Welfare Fund: Establishment of a welfare boards, social security and welfare fund for gig workers, funded by a welfare fee on transactions or company turnover, and contributions from the Union and State governments.
    • Grievance Redressal Mechanism: Introduction of a two-level grievance redressal mechanism to address workers’ complaints and ensure transparency in the automated monitoring and decision-making systems used by platforms.
    • Fair Termination Procedures: Requirement for contracts to list exhaustive grounds for termination, with a 14-day prior notice and valid reasons in writing needed before terminating a worker.
    • Payment and Deductions: Mandate weekly payments to workers, with clear communication regarding any payment deductions, and the right for workers to refuse a specified number of gigs per week without adverse consequences.
    • Safe Working Conditions and Contract Transparency: Obligation for aggregators to provide reasonable and safe working conditions, registration of all gig workers, and contracts to be written in simple language with a 14-day notice for any changes, allowing workers to terminate the contract without losing existing entitlements.

    What are the impacts of the labour market in a larger domain, and why are safeguards necessary? 

    • Lack of Basic Rights and Social Security: Gig workers are often classified as “partners” rather than employees, leaving them security outside the purview of labour protection laws and without access to basic rights and social benefits.
    • Arbitrary Terminations and Lack of Grievance Redressal: Instances of arbitrary terminations, blacklisting, and dismissals without hearing the worker’s side are common in the absence of regulatory laws. Automated monitoring and decision-making systems often make these decisions, leaving no room for grievance redressal.
    • Reduced Payments and Exploitation: Over the years, gig workers have faced reduced payments, arbitrary deductions, and exploitation due to the lack of regulatory laws governing the gig economy.
      • The wide gap between the purchasing power of these workers and the affluent consumers they serve raises questions about the long-term sustainability of this model.
    • Need for Transparency and Fair Contracts: The absence of transparency in automated monitoring systems and decision-making by platforms, as well as the lack of fair contracts, has led to the exploitation of gig workers.
      • There is a need for the state to review contract templates and ensure fair contracts with gig workers.
    • Lack of Access to Credit and Skill Development: Gig workers often lack access to credit and skill development opportunities, hindering their growth and formalization.
      • There is a need for enabling platforms to provide these benefits to gig workers.

    State-level and National level Initiatives taken previously: 

    • Code on Social Security, 2020: At the national level, the Code on Social Security, 2020 recognized those who freelance or work under short-term contracts. It mandated employers to provide benefits similar to those of regular employees to gig workers.
    • Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act: Rajasthan became the first state to introduce a bill for the welfare of gig workers in 2023.
      • The bill, which became an Act in September 2023, sought to establish a welfare board and fund for gig workers.
      • However, the Act has gone into cold storage after the changed government in November 2023.
    • Haryana Gig Workers Welfare Board Bill: The bill aims to establish a state-level board dedicated to the social and economic security of gig workers involved in delivering goods, services, and food at doorsteps.

    Case study: 

    • In California (USA), the Proposition 22 ballot measure allows app-based transportation and delivery companies to classify drivers as independent contractors while providing them with some benefits like a health insurance subsidy and minimum earnings guarantee.
    • New York City (USA)  has passed legislation requiring food delivery apps to provide workers with benefits like paid sick leave and minimum pay.

    Way forward: 

    • Unified Legislation: Introduce a comprehensive national-level legal framework specifically addressing the rights and welfare of gig workers. This legislation should encompass social security, fair wages, occupational safety, and grievance redressal mechanisms.
    • Strict Enforcement: Ensure robust enforcement of these laws through dedicated government bodies and regular audits of gig economy platforms. Penalties for non-compliance should be substantial enough to deter exploitative practices.

    Mains PYQ: 

    Q Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC IAS/2021)

  • Primary Amoebic Meningoencephalitis (PAM) Cases in Kerala

    Why in the News?

    There have been four cases, including three deaths, of the rare, but fatal brain-eating primary amoebic Meningoencephalitis (PAM) in Kerala in the last two months.

    What is Primary Amoebic Meningoencephalitis (PAM)?

    • PAM is a rare brain infection caused by Naegleria fowleri, a free-living amoeba found in warm freshwater and soil worldwide.
      • An amoeba is a type of cell or unicellular organism with the ability to alter its shape, primarily by extending and retracting pseudopods.
      • Higher temperatures of up to 115°F (46°C) are conducive to its growth and it can survive for short periods in warm environments.
    • The amoeba enters the body through the nose, typically during activities like swimming, and travels to the brain, causing severe damage.
    • PAM is also non-communicable.
    • Symptoms: Headache, fever, nausea, vomiting, stiff neck, confusion, seizures, hallucinations, and coma.
      • According to the US Centers for Disease Control and Prevention (CDC), most people with PAM die within 1 to 18 days after symptoms begin. It usually leads to coma and death after 5 days.

    Diagnosis and Treatment:

    • Currently, there are no established effective treatments for PAM.
    • Diagnosis involves PCR tests of cerebrospinal fluid, though detection can be challenging due to the rarity of PAM.
    • Treatment follows CDC guidelines, including miltefosine, Azithromycin, and Amphotericin B, with miltefosine recently procured by the State Health Department from Germany.
      • Medical interventions typically involve a combination of drugs, including amphotericin B, azithromycin, fluconazole, rifampin, miltefosine, and dexamethasone.

  • News in Frames: Chandravalli Caves

    Why in the News?

    Observations made by previous historians who had found painted pottery and coins from the Shatavahana empire and the pre-historic period were once again in the news.

    About Chandravalli Caves (also known as Ankali Math)

      • Chandravalli, a cave temple near Chitradurga, is also a pre-historic site.
      • Observations at the Site:
        • Previous excavations were carried out by Mortimer Wheeler under the guidance of the Archaeological Survey of India in 1947.
        • The cave features multiple chambers including a puja place with a shivlinga, a drawing room, a bedroom, and a water outlet connected to an internal tank.
        • The caves are accessible only through a narrow entrance, with interiors visible only with the help of a powerful torch hence they are also called as “Dark Caves”.
          • Presently, Excavations have revealed artifacts such as coins, painted bowls, and earthen pots from various dynasties such as the Hoysala, the Satavahana, and the Vijayanagara.
          • Excavation reports show that human habitation existed here even during the Iron Age.
    • Historical Aspect: 
      • They were named after a saint from Ankalagi in Belagavi district who is believed to have settled here.
      • The cave also contains a rock inscription of Mayurasharma, the founder of the Kadamba dynasty, dating back to AD 450.

    About Kadamba dynasty

    • The Kadambas of Goa were vassals of the Chalukya dynasty of Kalyana. In recognition of his assistance in defeating the Rashtrakutas, Chalukyan emperor Tailapa II appointed Kadamba Shasthadeva as the provincial governor (Mahamandaleshwara) of Goa.
    • In 960 AD, Shasthadeva captured the city of Chandavara from the Shilaharas and later seized control of the port of Gopakapattana, which is present-day Goa.
    • Talara Nevayya’s son Gundayya may have fought alongside Shasthadeva in the conquest of the port but died in the battle after successfully capturing it.
    • Coins from Indian kings like Krishnaraja Wodeyar III, Krishnadevaraya, various Satavahana kings, and Viraraya of the Hoysala kingdom have been discovered.
    • Among the foreign coins found are denarii of Roman ruler Augustus Caesar and a coin of Chinese Han dynasty Emperor Wu Ti.
    • Geographical Aspects:
      • The area is semi-arid with scrub vegetation and a stream running through it.
      • These caves are surrounded by three hills: Chitradurga, Kirabanakallu, and Jolagudda.

    PYQ:

    [2021] Which one of the following statements is correct?

    (a) Ajanta Caves lie in the gorge of Waghora river.

    (b) Sanchi Stupa lies in the gorge of Chambal river.

    (c) Pandu-lena Cave Shrines lie in the gorge of Narmada river.

    (d) Amaravati Stupa lies in the gorge of Godavari river.

  • Surge in Silver Imports from UAE through Gift City

    Why in the News?

    • India’s majority of silver imports are now handled by few private players from Dubai through the India International Bullion Exchange (IIBX), Gift City.
      • This trend, aimed at reducing import duties by the traders, poses potential long-term revenue losses for India.

    India’s Silver Imports

    • India imported a record 4,172 metric tons of silver in the first four months of 2024, far exceeding the total of 3,625 tons imported in all of 2023.
      • In February 2024 alone, India imported a record 2,295 metric tons of silver, up from 637 tons in January. This represents a 260% increase.
    • The surge in imports has been driven by increasing demand from the Solar panel industry as well as a rise in Speculative Investment, with investors betting on silver outperforming gold.
    • Nearly half of India’s silver imports in 2024 so far have come from the United Arab Emirates (UAE) due to a lower import duty under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
      • India generally imposes a 15% import duty on silver.
      • However, because of the CEPA signed between India and the UAE in 2022, allows private traders to import silver through the India International Bullion Exchange (IIBX) paying 9% duty, and an extra 3% in value-added tax.
    • The government is now concerned about the 647-fold spike in silver imports from the UAE and plans to discuss the issue with Abu Dhabi.
      • The Gift City exchange, while clearing imports from Dubai since December 2023, is under scrutiny for potential violations of these rules compared to imports from other ports.

    About India International Bullion Exchange (IIBX)

    • Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins.
    • The IIBX was announced during the 2020 budget speech by the Finance Minister.
    • It is set up at the International Financial Services Center (IFSC) located in GIFT City, Gandhinagar.
    • It is India’s first bullion exchange, launched on 29 July 2022 in Gujarat.
    • It is the 3rd exchange of its kind in the globe.

    Regulations and Setup:

    • The International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020, were notified in December 2020 specifically for the trading of precious metals, including gold and silver.
    • These regulations encompass the operations of the bullion exchange, Clearing Corporation, depository, and vaults associated with IIBX.

    Operational Framework

    • Previously, India had liberalized gold imports through nominated banks and agencies in the 1990s.
      • With IIBX, eligible qualified jewellers in India can directly import gold.
    • Jewellers need to become trading partners or clients of an existing trading member to participate in the exchange.

    Comparison with Previous Practices

    • Previously, bullion in India was imported under a consignment model by nominated banks and agencies approved by the RBI, which added handling fees and premiums.
    • The introduction of IIBX aims to streamline the supply chain by allowing direct imports through the exchange, potentially reducing costs for traders and consumers alike.

    Recommendations for Addressing Challenges

    • Renegotiation of CEPA Terms: The Global Trade Research Initiative (GTRI) advocates for revising CEPA terms to curb duty arbitrage and enforce stricter checks on value addition claims by Gift City exchange.
    • Enhanced Regulatory Oversight: GTRI proposes limiting silver imports to RBI/DGFT-nominated agencies to mitigate risks associated with mis-declared imports and ensure compliance with CEPA conditions.
    • Investigation and Oversight: There is a call for a thorough investigation into relationships between export and import firms to identify and mitigate conflicts of interest or familial ties that could influence import practices.

    PYQ:

    [2016] What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

    1. To bring the idle gold lying with Indian households into the economy.
    2. To promote FDI in the gold and jewellery sector.
    3. To reduce India’s dependence on gold imports.

    Select the correct answer using the code given below:

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

  • DRDO unveils Indigenous Light Tank Zorawar

    Why in the News? 

    The Defence Research and Development Organisation (DRDO) and private company Larsen & Toubro (L&T) unveiled the prototype of the Zorawar light tank.

    Note: 

    • India primarily has T-90S Bhishma and T-72 Ajeya produced under license from Russia.
    • The Future Ready Combat Vehicle (FRCV) program aims to develop and induct next-generation Indigenous main battle tanks to replace the ageing T-72 fleet starting from 2030 onwards

    What is Zorawar Tank?

    • The Zorawar Tank was developed jointly by the DRDO and Larsen & Toubro (L&T).
    • It is an indigenous light tank designed specifically for operations in high-altitude regions like Ladakh and Sikkim.
    • It has been developed under ‘Project Zorawar’, named after General Zorawar Singh of Jammu.
    • Its prototype was unveiled in July 2023, with internal testing completed at L&T’s facility in Gujarat.
    • It has been scheduled for extensive trials in various conditions, including summer, winter, and high-altitude environments, with plans for induction by August 2025.

    Who was General Zorawar Singh (1784–1841)?

    • Zorawar Singh Chandel was a military general of the Dogra Rajput ruler, Gulab Singh of Jammu.
    • He served as the governor (wazir-e-wazarat) of Kishtwar and extended the territories of the kingdom by conquering Ladakh and Baltistan.
    • He also boldly attempted the conquest of Western Tibet (Ngari Khorsum) but was killed in battle of To-yo during the Dogra-Tibetan war.
    • About his legacy of conquests in the Himalayas including Ladakh, Tibet, Baltistan and Skardu as General and Wazir, Zorowar Singh has been referred to as the “Napoleon of India“, and “Conqueror of Ladakh“.

    Operational Capabilities:

    • Designed to operate effectively in extreme weather conditions and at high altitudes (above 15,000 feet) with minimal logistic support.
    • Intended for use in challenging terrains where heavier tanks like T-72 and T-90 face limitations.
    • Includes thermal sights, night-fighting capabilities, and features to reduce visual, sound, heat, and electromagnetic signatures.

    Technical Specifications:

    • Weight: Approximately 25 tons, allowing for air transportation.
    • Armament: Equipped with a 105mm turret from John Cockerill.
    • Firepower: Capable of firing advanced smart munitions and anti-tank guided missiles.
    • Mobility: Agile and manoeuvrable on steep slopes and riverine regions, designed to be amphibious.

    Engine and Power:

    • Initially planned with a German engine, but due to delays, currently powered by a Cummins engine assembled in India.
    • DRDO is concurrently working on developing a new power pack and a 1400 HP engine to enhance performance.

    Various Indigenous Tanks in the Indian Army

    Features
    Vijayanta (1965)
    • First indigenous main battle tank of the Indian Army
    • Based on a licensed design of the Vickers Mk.1 tank
    • Equipped with a 105mm rifled gun
    • Top speed of 52 km/h and range of 201 km
    • Crew of 4 (commander, gunner, loader, driver)
    • Upgrades included an improved fire control system, armour, and engine
    Arjun (2004)
    • India’s first fully Indigenous main battle tank developed by the Combat Vehicles Research and Development Establishment
    • Equipped with a 120mm rifled gun and has top speed of 67 km/h and range of 483 km
    • Crew of 4 (commander, gunner, loader, driver)
    • Features advanced fire control system, composite armor, and NBC protection
    • Arjun Mk-1A variant with improved capabilities entered service in 2022

     

  • Four-year UG Program formally launched in Kerala

    Why in the News?

    Kerala CM Pinarayi Vijayan inaugurated the curriculum of Four-Year Undergraduate Programmes (FYUP) in the state, stressing that it is in line with changes in the Global Education System where the focus is equally on imparting knowledge as well as the transfer of skills and vocational training.

    About Four-Year Undergraduate Program (FYUP):

    Parameters Details
    Key features 
    • Students can choose their major and minor subjects freely, for example science students can pursue humanities courses.
    • Provision for students to complete the degree in 2.5 years if they secure the required credits.
    • Offers 16 FYUP honors programs with research across science, arts, commerce and business streams at the University of Kerala.
    FYUP curriculum
    • It is designed to provide students with knowledge, intellectual abilities, multidisciplinary perspectives, flexible skills, social commitment and research aptitude to make them responsible citizens and offer multiple opportunities in research and employment
    • Includes online courses, skill development, internships and research projects.
    Eligibility criteria
    • Students need a CGPA of 7.5 or above to advance to the 4th year and get an honors degree with research.
    •  Admission based on 12th marks for now, entrance exam planned from next year.

    Administrative and Technological Upgrades required:

    • Regulatory Revisions: Plans for a comprehensive revision of University Acts and Regulations to streamline academic processes and enhance efficiency.
    • K-REAP Initiative: Introduction of Kerala Resources for Education Administration and Planning (K-REAP), a governance software to centralize institutional activities.

    Issues with FYUP Program

    • Implementation Challenges: The introduction of the FYUP faced logistical and administrative hurdles, impacting its rollout across Kerala’s higher educational institutions.
    • Curriculum Adaptation: Critics argue that the FYUP’s curriculum overhaul lacks sufficient alignment with industry needs and fails to adequately prepare students for real-world challenges.
    • Student Adaptation: Some students and educators have expressed concerns about the abrupt shift in academic structure and its impact on learning outcomes and student performance.
    • Evaluation Methods: There is ongoing debate over the effectiveness of the FYUP’s assessment methods, with some stakeholders questioning its ability to accurately gauge student knowledge and skills.
    • Policy Revisions: Continuous revisions and adjustments to the FYUP’s policies and regulations are needed to address evolving educational needs and feedback from various stakeholders.

    New Education Policy (NEP), 2020:

    • The New Education Policy (NEP) 2020 introduced by the Government of India aims to transform the educational landscape of the country.
    • One of the key changes in the NEP is the restructuring of the duration and framework of undergraduate programs.
    • The NEP 2020 introduces a four-year undergraduate program as a standard duration for bachelor’s degrees, replacing the traditional three-year format.
    • Students can exit the program at different stages with a qualification. For example:
      • After 1 Year: Certificate
      • After 2 Years: Diploma
      • After 3 Years: Bachelor’s Degree
      • After 4 Years: Bachelor’s Degree with Research

     

    PYQ:

    [2015] The quality of higher education in India requires major improvement to make it internationally competitive. Do you think that the entry of foreign educational institutions would help improve the quality of technical and higher education in the country. Discuss.

  • Amidst politicians’ new reverence for the Constitution, one thing to remember 

    Why in the news? 

    Voters have cleverly embraced the idea of constitutional principles to protect their freedoms. It’s now everyone’s responsibility, including elected officials, citizens, and the judiciary, to ensure that there’s no overreach.

    Constitutional Provisions:

    • Article 99: Mandates that every member of Parliament must take an oath or affirmation to uphold the Constitution.
    • Third Schedule: Specifies the form of oath or affirmation that members of Parliament, judges of the Supreme Court, and High Courts must take.
    • Part III (Fundamental Rights): Guarantees civil liberties, such as the rights to equality, freedom of speech, and right to life.
    • Part IV (Directive Principles of State Policy): Provides guidelines for governance, directing the state in certain policy matters for the welfare of citizens.

    Basic Structure and Foundational Principles:

    • Kesavananda Bharati Case (1973): Established the doctrine that certain features of the Constitution are beyond the amending power of Parliament if they violate its “Basic Structure”, ensuring that fundamental principles like democracy, secularism, judicial review, and federalism cannot be altered.
    • Foundational Principles: Include the rule of law, separation of powers, judicial independence, and protection of fundamental rights.

    Basic Structure and foundational principles should never be allowed to be eclipsed                                     

    • Protection of Fundamental Rights: The Basic Structure doctrine protects fundamental rights and core principles like democracy, secularism, judicial independence, and federalism in India.
    • Preservation of Constitutional Balance: Eclipsing the Basic Structure and foundational principles could upset the delicate balance of powers among the legislature, executive, and judiciary. These principles ensure that no single branch of government becomes disproportionately powerful, thereby maintaining the checks and balances essential for democratic governance.
    • Upholding the Rule of Law: The Basic Structure doctrine reinforces the supremacy of the Constitution as the supreme law of the land. By preventing its core principles from being undermined or diluted through constitutional amendments or legislative actions, it ensures that all state actions, including laws passed by Parliament, are consistent with constitutional norms and the rule of law.

    Significance of “Judicial Overreach”:

    • Protection of Rights: Judicial overreach often arises when courts intervene to protect fundamental rights guaranteed by the Constitution, especially when legislative or executive actions are perceived to violate these rights.
    • Checks and Balances: It serves as a crucial check on the powers of the legislature and executive, ensuring that their actions conform to constitutional principles and do not exceed their authority.
    • Defending the Constitution: Courts may intervene to uphold the supremacy of the Constitution, ensuring that laws and actions comply with its provisions, including the Basic Structure doctrine established in the Kesavananda Bharati case.

    Criticisms of judicial overreach:

    • Interference with the Separation of Powers: Critics argue that judicial overreach interferes with the constitutional principle of separation of powers.
    • Lack of Accountability: Another criticism of judicial overreach is that the judiciary is not accountable to the people in the same way that elected representatives are. Because Judges are appointed, not elected 
    • Dilution of Democracy: Some critics argue that judicial overreach can undermine the democratic process by taking important decisions out of the hands of elected officials and placing them in the hands of judges.  

    Mains PYQ: 

    Q What was held in the Coelho case? In this context, can you say that judicial review is of key importance amongst the basic features of the Constitution? (UPSC IAS/2016)

  • India’s Fintech funding plummets amid global slowdown, shows report    

    Why in the news? 

    Despite achieving a significant milestone in H1 2024, the fintech sector has encountered notable funding difficulties.

    What is the Fintech Sector?

    • The fintech sector encompasses technologies and innovations that aim to compete with traditional financial methods in the delivery of financial services. This includes a wide range of applications like mobile banking, online payments, digital lending, and blockchain technology.

    Present Report Insights

    • Funding Decline: The Indian fintech sector recorded $795 million in funding in H1 2024, a decrease of 11% from H2 2023 and 59% from H1 2023.
    • Global Ranking: Despite the decline, the Indian fintech ecosystem ranked among the top three globally funded sectors alongside the US and UK in H1 2024.
    • Major Transactions: Only two funding rounds exceeded $100 million in 2024, with Perfios becoming the only unicorn. Bengaluru led the funding, followed by Mumbai and Pune.
    • Segment Performance: Alternative Lending, RegTech, and BankingTech were the top-performing segments, with Alternative Lending securing $646 million, making up 81% of the total funding.
    • Acquisitions and IPOs: There were six acquisitions and five IPOs in H1 2024, marking significant activity despite the overall funding challenges.

    Significance of Fintech Sector

    • Financial Inclusion: Fintech innovations enhance financial inclusion by providing access to financial services to unbanked and underbanked populations.
    • Economic Growth: The sector contributes significantly to economic growth by fostering innovation, creating jobs, and boosting consumer spending.
    • Efficiency and Transparency: Fintech solutions improve efficiency and transparency in financial transactions, reducing costs and fraud.
    • Support for Startups: The sector offers numerous opportunities for startups, driving entrepreneurship and competition.

    Challenges 

    • Data Security: Fintech companies must implement strong security measures to protect sensitive customer data from cyber-attacks and data breaches. For example, Acko, a leading Indian fintech startup, has faced issues with data breaches in the past, highlighting the importance of robust data security protocols in the industry.
    • Regulatory Compliance: The fintech industry is highly regulated, requiring companies to stay updated on the latest government policies and ensure compliance to avoid penalties. For example, the Reserve Bank of India (RBI) has issued guidelines to protect consumers from predatory lending practices by digital lenders, underscoring the need for fintech firms to navigate the evolving regulatory landscape.
    • Customer Acquisition and Retention: Attracting and retaining customers is critical for fintech firms. For example, BharatPe, a prominent Indian fintech company, has faced challenges in customer retention due to its focus on merchant acquisition.
    • Funding and Investment: Securing adequate funding and investments remains a challenge for many fintech startups.  For example, Paytm, one of India’s largest fintech companies, has faced scrutiny from investors due to its inability to achieve profitability

    How India Can Improve Its Fintech Sector

    • Supportive Regulatory Environment: Create a regulatory framework that encourages innovation while ensuring consumer protection and systemic stability, facilitating a balanced growth of the fintech ecosystem.
    • Infrastructure Development: Invest in digital infrastructure, such as high-speed internet and mobile connectivity, to support the widespread adoption and efficient functioning of fintech applications across the country.
    • Focus on Cybersecurity: Ensure robust cybersecurity measures to protect against fraud and cyber-attacks, building trust among users and maintaining the integrity of fintech services.
    Steps taken by the government: 

    • Regulatory Sandbox: The Securities and Exchange Board of India (SEBI) introduced a framework for regulatory sandbox in 2020 to allow fintech companies to experiment with new products and services in a controlled environment.
    • Digital Personal Data Protection Bill: Introduced in 2022, this bill aims to create a framework for the protection of personal data collected by fintech companies.
    • Guidelines on Digital Lending: In 2022, the Reserve Bank of India (RBI) issued guidelines to protect consumers from predatory lending practices by digital lenders.
    • Promoting Financial Inclusion: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has helped in enrolling over 523.9 million beneficiaries for new bank accounts, enabling fintech startups to reach a large consumer base.
    • Aadhar and UPI: The unique biometric identification system Aadhar and the Unified Payments Interface (UPI) have improved transparency and delivery of financial service

    Conclusion: Fintech companies in India face challenges including data security, regulatory compliance, customer acquisition, and securing investments. Addressing these ensures sustainable growth and trust in a competitive market environment.

    Mains PYQ: 

    Q Has digital illiteracy, particularly in rural areas, coupled with a lack of Information and Communication Technology (ICT) accessibility hindered socio-economic development? Examine with justification. (UPSC IAS/2021)

  • DAF 1 Released. Please DO NOT fill DAF 1 before attending our session. Last day to fill 12th July

    DAF 1 Released. Please DO NOT fill DAF 1 before attending our session. Last day to fill 12th July

    Register your seat for the closed group zoom session.

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    Dear all,

    Hope you are doing well and geared up for the upcoming Mains.

    Careful considerations need to be followed before filling the DAF. Please DONOT fill unless you have had a session with us.

    We have come across many candidates who unknowingly mess up their DAF. Please DONOT submit your DAF-1 without attending this session.

    Questions that our students have asked-

    -EWS, Non-creamy certificates issuing authorities.

    -Degree not in hand.

    -Photographs.

    and many more

    Session : Offline and Online. Always encourage offline.

    Date and Time : 6:00PM, 7th July tomorrow.

    Dont let mistakes or lack of clarity create hindrances for you.

    Register your seat for the closed group zoom session.

    Register Now!

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