India has moved up to the 39th position in the World Economic Forum’s latest “Travel & Tourism Development Index (TTDI) 2024, a significant climb from 54th in 2021.
The United States tops the index, followed by Spain, Japan, France, and Australia.
Pakistan is ranked 101st.
India’s Performance and Ranking
Price Competitiveness: India is ranked 18th in terms of price competitiveness.
Transport Infrastructure: It stands at 26th for air transport and 25th for ground and port infrastructure.
Resource Ranking: India is 6th in natural resources, 9th in cultural resources, and 9th in non-leisure resources.
TTDI Score Change: India’s overall TTDI score decreased by 2.1% compared to its 2019 level.
Decline in Sustainability Performance: India has seen a decline in sustainability performance relative to 2019 but still performs well due to the prevalence of sustainable long stays among inbound visitors.
About Travel & Tourism Development Index (TTDI)
The TTDI was compiled in collaboration with the World Economic Forum (WEF) and the University of Surrey in the United Kingdom (UK).
TTDI 2024 is the second edition, evolved from the Travel & Tourism Competitiveness Index (TTCI) series, a flagship index of WEF that has been in production since 2007.
TTDI 2024 covered 119 countries’ travel and tourism sectors across various factors and policies.
Founded in 1971 by Swiss-German economist Klaus Schwab in Geneva, Switzerland.
Purpose
To bring together public and private sector leaders to address global political, social, and economic issues.
Membership
Introduced in 1975, membership includes the world’s top 1,000 companies.
Scope Expansion
Initially focused on European firms catching up with US management practices, expanded to encompass broader economic and social issues.
Birth of the G20
The concept of the G20, focusing on global finance and comprising 20 countries, emerged from discussions at the WEF in 1998.
Key Reports Published
Global Competitiveness Report
Global Risks Report
Global Gender Gap Report
Global Human Capital Report
Global Information Technology Report
Future of Jobs Report
Global Enabling Trade Report
Trick: Reports beginning with the name ‘Global’.
World level recovery in travel and tourism:
Sector Recovery: International tourist arrivals and the sector’s contribution to global GDP are expected to return to pre-pandemic levels in 2024.
Regional Recovery: West Asia exceeded its 2019 tourist arrival levels by 20%, while Europe, Africa, and the Americas are recovering robustly, each reaching about 90% of their 2019 levels.
PYQ:
[2019] The Global Competitiveness Report is published by the:
(a) International Monetary Fund
(b) United Nations Conference on Trade and Development
(c) World Economic Forum
(d) World Bank
Practice MCQ:
The Travel & Tourism Development Index (TTDI) is released by:
A recent study conducted by the “Department of Aquatic Biology and Fisheries”, University of Kerala, has revealed alarming levels of microplastic pollution in Ashtamudi Lake, a Ramsar wetland in Kollam district.
Back2Basics:Microplastics
Microplastics are small plastic particles that are less than 5 millimetres (0.2 inches) in size.
They are a type of plastic pollution that originates from the fragmentation of larger plastic debris, as well as from the direct release of small plastic particles in various products and activities.
Types of Microplastics:
About Ashtamudi Lake
Ashtamudi Lake is located in the Kollam district of Kerala.
The lake is also called the “gateway to the backwaters of Kerala”.
Historical Background: The importance of Ashtamudi Kayal dates back to the times of the Romans and Phoenicians in the 14th century.
It is a brackish water lake, meaning it contains a mix of freshwater and saltwater. It covers an area of approximately 61 square kilometres (23.5 square miles).
Kallada River is a major river discharging into the Ashtamudi Lake.
The name “Ashtamudi” translates to “eight coned” in Malayalam, referring to the lakes eight prominent arms or channels.
The lake is surrounded by lush vegetation, including mangrove forests, coconut groves, and palm trees.
Ashtamudi Lake is an integral part of the Kollam-Kottapuram Waterway, which connects the Kerala backwaters to the Arabian Sea.
Notable Islands: Chavara, Munroe
PYQ:
[2022] Consider the following pairs:
Wetland : Lake Location
1. Hokera Wetland : Punjab
2. Renuka Wetland : Himachal Pradesh
3. Rudrasagar Lake : Tripura
4. Sasthamkotta Lake : Tamil Nadu
How many pairs given above are correctly matched?
(a) Only one pair
(b) Only two pairs
(c) Only three pairs
(d) All four pairs
[2019] Why is there a great concern about the ‘microbeads’ that are released into the environment?
(a) They are considered harmful to marine ecosystems.
(b) They are considered to cause skin cancer in children.
(c) They are small enough to be absorbed by crop plants in irrigated fields.
(d) They are often found to be used as food adulterants.
On 20 May 2024, the Prosecutor of the International Criminal Court (ICC) requested arrest warrants against leaders of Hamas and Prime Minister Benjamin Netanyahu of Israel about the events of October 7, 2023, and the conflict in Palestine.
What is the International Criminal Court?
The International Criminal Court formed in 2002, is an Intergovernmental Organization and International Tribunal seated in the Hague, Netherlands.
It deals with the most serious crimes of concern to the international community, including genocide, crimes against humanity, war crimes, and crimes of aggression.
Unlike the international tribunals, the International Criminal Court is a permanent body.
Against whom has the Prosecutor requested warrants of arrest?
Specifically, warrants have been sought for senior Hamas leaders Yahya Sinwar, Mohammed Deif, and Ismail Haniyeh, along with Netanyahu and Israel’s Minister of Defence Yoav Gallant.
The process of ICC decision-making and the scope of the present case:
ICC decisions are binding, but they rely on the cooperation of member states for support.
A panel of judges at the ICC must decide on the Prosecutor’s application for arrest warrants.
If approved, all State Parties are obligated to cooperate, including arresting and extraditing the accused individuals to The Hague.
This could restrict international travel for Netanyahu and Gallant, affecting visits to countries that are State Parties to the Rome Statute.
Israel is not a Party to the Rome Statute. However, the ICC does have jurisdiction over crimes committed by nationals of both State Parties (such as Palestine) and Non-state Parties (such as Israel) on the territory of a State Party (such as Palestine).
International Criminal Court (ICC) Vs. International Court of Justice (ICJ)
ICC
ICJ
Relationship with the UN
ICC is an independent organization not part of the United Nations
ICJ is an integral part of the UN and acts as its primary judicial branch
Members
ICC has around 105 members, focusing on prosecuting individuals for crimes.
ICJ has all 193 UN member countries as its members, primarily resolving disputes between states
Derivation of Authority
ICC derives its authority from the Rome Statute, focusing on prosecuting individuals for crimes against humanity, war crimes, genocide, and crimes of aggression.
ICJ derives its authority from the Charter of the United Nations, settling disputes between countries based on international law
Funding
It mainly functions on contributions made by state parties to the Rome Statute and voluntary contributions
Its funding sources differ based on its status as an organ of the United Nations
Way forward:
Need Enhanced Cooperation: Encouraging greater cooperation between the ICC and the UN to strengthen their effectiveness in addressing international crimes.
Need Wider Membership: Advocating for more countries to become State Parties to the Rome Statute to broaden the ICC’s jurisdiction and reach.
Mains PYQ:
Q India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss. (UPSC IAS/2018)
The UN Convention to Combat Desertification (UNCCD) recently published the “Global Land Outlook Thematic Report” on Rangelands and Pastoralists, revealing that up to 50% of Rangelands are degraded.
About UNCCD:
UNCCD adopted in 1994 (effectively from 1996), is a legally binding agreement that aims to protect and restore land and combat desertification and drought.
It is one of the three Rio Conventions (the other two being – the Convention on Biological Diversity (UNCBD) and United Nations Framework Convention on Climate Change (UNFCCC)).
What is the Rangeland?
Rangeland, is any extensive area of land that is occupied by native herbaceous or shrubby vegetation which is grazed by domestic or wild herbivores.
It may include tallgrass prairies, steppes (shortgrass prairies), desert shrublands, shrub woodlands, savannas, chaparrals, and tundras.
These lands constitute 54% of all land cover, account for 1/6th of global food production, and represent nearly 1/3rd of the planet’s carbon reservoir.
World areas that are most acutely affected by Rangeland Degradation:
Central Asia, China, Mongolia: The replacement of government management with privatization and agricultural industrialization led to the abandonment of herders and reliance on insufficient natural resources, causing degradation.
North Africa and the Near East: Climate change is pushing pastoralists into poverty and degrading rangelands.
Sahel and West Africa: Conflict, power imbalances, and border issues have disrupted livestock mobility, leading to degradation.
South America: Climate change, deforestation from industrial agriculture, and land use conversion are primary drivers of degradation.
East Africa: Migration and forced displacement due to competing land uses are evicting pastoralists, causing degradation.
North America: Degradation of ancient grasslands and dry rangelands threatens biodiversity in ecosystems like tall-grass prairies and southern deserts.
Europe: Policies favoring industrial farming over pastoralism and misguided incentives are causing the abandonment and degradation of rangelands.
South Africa and Australia: Afforestation, mining, and land conversion are causing degradation and loss of rangelands.
How does it impact the Food chain?
Over two billion people, including small-scale herders, ranchers, and farmers, depend on healthy rangelands for their livelihoods, underscoring the critical link between rangeland health and food chain cycle.
Up to 50% of rangelands are degraded due to various factors including overuse, misuse, climate change, and biodiversity loss, posing a severe threat to food security.
The Economic significance of Rangelands:
Livestock Grazing and Agriculture: Rangelands are crucial for livestock production, providing natural forage for cattle, sheep, goats, and other herbivores. This grazing land supports the meat and dairy industries, which are vital to the global food supply and rural economies.
Eco-tourism and hunting: These areas support a wide range of wildlife, contributing to biodiversity and offering opportunities for eco-tourism and hunting, both of which generate significant income for local economies.
Ecosystem Services: Rangelands provide vital services like water filtration, carbon storage, and soil preservation, yielding economic advantages through climate regulation and conservation.
Income and employment opportunities: Harvesting these resources provides income and employment opportunities for rural populations. The economic contributions made by different countries are as follows:
Ethiopia: Livestock production from rangelands accounts for 19% of the country’s GDP.
India: Livestock from rangelands contributes 4% to the national GDP.
Brazil: As a major beef producer, Brazil generates one-third of its agribusiness GDP from cattle livestock, producing 16% of the world’s beef.
What is the innovative approach presented by the UNCCD Report?
The past estimates by UNCCD of degraded rangeland of roughly 25% are significantly underestimated, where the actual loss of rangeland’s health and productivity was potentially reaching up to 50%.
Conceptual Approach: The report outlines a new conceptual approach designed to help policymakers stabilize, restore, and manage rangelands more effectively.
This new approach is supported by detailed case studies from nearly every world region, which provide important lessons from both the successes and failures in rangeland management.
Core Recommendation – Protect Pastoralism: The report emphasizes the importance of protecting pastoralism a traditional, mobile way of life based on pasture-based livestock production as a key strategy for sustainable rangeland management.
Conclusion: Many countries like the U.S. and Canada makingare trying to reintroduce bison, an animal with significant cultural importance to indigenous peoples. This initiative aims to promote rangeland health and enhance food security.
Mains PYQ:
Q The process of desertification does not have climate boundaries. Justify with examples.(UPSC IAS/2020)
Recently, the apex court held that lawyers as ‘professionals’ could not be subjected to legal proceedings for providing faulty ‘service’ under the Consumer Protection Act 2019 (CPA). A similar case applies to Medical practitioners which is in high controversy.
What is the Consumer Protection Act (CPA)?
Consumer Protection Act, 1986
Consumer Protection Act, 2019
Purpose
Enacted to provide simpler and quicker access to redressal of consumer grievances.
Repeals and replaces the CPA, 1986.
Introduction of Concept
Introduced the concept of ‘consumer’ and conferred additional rights on consumers.
Expands the scope of the definition of ‘consumer’ to include transactions conducted offline or online through electronic means, teleshopping, direct selling, or multi-level marketing.
Scope of Protection
Protects individuals fitting the definition of ‘consumer’ as defined by the Act.
Extends protection to a wider range of transactions, including those related to banking, insurance, transport, housing construction, entertainment, amusement, etc.
About the previous case –Indian Medical Association vs V P Shantha (1995):
In 1995, a three-judge bench of the SC ruled, “Doctors would be covered under the consumer protection law, allowing the filing of several medical negligence lawsuits against doctors for deficiency in service”.
The court also acknowledged that medical professional occupations are often “skilled” work which differs from other occupations and the success usually depends on factors that are beyond the doctor’s control.
Diversity of present Opinions:
What did the National Consumer Disputes Redressal (NCDR) Commission say?
In 2007, the NCDR Commission held that lawyers provide a service to their clients and hence they can be sued for deficiency of service.
This case ultimately reached the apex court where the judgement was passed recently.
What did the Apex court say?
The court said that the objective principle of the CPA 2019 was to protect consumers from unfair trade practices and unethical business practices (the law was not intended to include professionals).
The court noted that the legal profession is unique and cannot be compared with any other profession.
According to the SC, hiring or availing of an advocate is “a contract of personal service” and is therefore exempted from the scope of the consumer protection law.
About the Consumer Redressal Commissions in India:
Legal proceedings under the CPA are heard by the Commissions which are constituted at all the 3 tier- District, State, and National levels (According to the CPA, 1986).
The President of each Commission would be a person who was/ is qualified to be a judge at the District, High Court, and Supreme Court resp.
The other individuals who have the knowledge, experience, or capacity to deal with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration.
Since there is no requirement for commission members to have knowledge in medical matters, they are not suited to deal with complex medical issues.
In 2024, another SC bench appeared to be more sympathetic to the medical practitioners and held that these professionals should not be held to the same standard as other occupations.
Why does the Apex Court not Exempt Medical Profession from the Purview of CPA?
Firstly, doctors have specific duties to their patients, such as deciding on treatment and its administration.
Secondly, if a doctor breaches these duties by failing to provide a reasonable standard of care, they can be held liable under the CPA.
Additionally, the court believes requiring commission members to have case-specific knowledge would be impractical and burdensome.
Conclusion: This decision aims to prevent potential imbalances between District and State Commissions in handling cases and places the responsibility on parties to provide evidence for informed decisions.
The price fluctuations and Inflation trends in recent market underscore the necessity for Targeted Policy Interventions and a comprehensive grasp of Agricultural Supply Chains.
The Significance of Vegetable Triumvirate (trio):
Tomato, Onion, and Potato (TOP) aren’t just statistical entities but essential ingredients in Indian cuisine, forming the backbone of many dishes.
These vegetables represent more than just a portion of the CPI basket; they embody cultural and dietary preferences deeply ingrained in Indian culinary traditions.
Volatility and its role in shaping Inflation trends by TOP vegetables:
Vegetable prices in India rose by approximately 15% year-on-year, indicating significant inflation in this category.
Highly Volatile: There was notable volatility in vegetable prices, with a sharp decrease of 0.7% in June followed by a substantial increase of 37.4% in July.
High Contribution to Inflation: Despite vegetables weighing only 6% in the total CPI basket, their contribution to inflation was about 30% in Feb/March 2024.
For example, Tomatoes having a weight of only 0.6% in the CPI basket, prices soared by 202% in July 2023, contributing to 18.1% of the total headline inflation.
The contribution of vegetables to headline inflation was 31.9%, with TOP (tomato, onion, and potato) contributing 17.2%, further highlighting their substantial impact on inflation trends.
Navigating Culinary and Economic Realities (Challenges):
Policy Challenges: The volatility in TOP prices underscores the need for effective policy interventions, including agricultural value chain reforms and improved storage facilities to stabilize prices and support farmers.
Farmers’ Plight: Farmers, who are often net buyers of these crops, bear the brunt of price fluctuations, necessitating measures like Minimum Support Prices to ensure their livelihoods are protected.
Government Response: Despite protests and demands from farmers, policy responses have been inconsistent, relying on short-term measures like export bans rather than addressing underlying structural issues in the agricultural sector.
Way forward:
Need for Value Chain Reforms: Implement reforms aimed at improving the efficiency and resilience of agricultural value chains for TOP vegetables.
Need Price Stabilization Mechanisms: Introduce mechanisms to stabilize prices of TOP vegetables, such as market interventions, buffer stocks, or price ceilings during periods of extreme volatility. This can help mitigate the impact of price fluctuations on consumers and farmers alike.
Minimum Support Prices (MSPs): Establish MSPs for TOP vegetables to provide farmers with a guaranteed floor price for their produce.
Mains PYQ:
Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.(UPSC IAS/2019)
Wildlife authorities in Himachal Pradesh’s Lahaul & Spiti district have initiated surveys to estimate the population of Blue Sheep (bharal) and Himalayan Ibex (Tangor), vital prey species for the iconic snow leopard.
This move aims to assess the region’s biodiversity and promote conservation efforts.
About the Species Mentioned
Bharal (Blue Sheep)
Himalayan Ibex (Tangor)
Scientific Name
Pseudois nayaur
Capra sibirica hemalayanus
Genus
Pseudois
Capra
Distribution
India, Bhutan, China (Gansu, Ningxia, Sichuan, Tibet, Inner Mongolia), Myanmar, Nepal, Pakistan
Himalayan region of India, Pakistan, Tibet, Nepal
Features
Slate grey coat with bluish shine
Horns grow upwards, curve out, and then towards the back
Large curved horns with notches on the front
Light brown to reddish-brown coat, white belly, black and white markings on legs
Thick, woolly coat in winter, shed in early summer
Behavior
Active throughout the day, alternating between feeding and resting on grassy mountain slopes
Usually found in small herds, sometimes around 50 together;
In response to the helicopter crash involving Iranian President Ebrahim Raisi, the European Union had activated its Copernicus Emergency Management Service (EMS) to aid in search and rescue efforts.
About the Copernicus Programme
This Programme was launched in 1998 by the European Union’s earth observation
Named for Copernicus, it uses satellites and ground systems for environmental data.
It is implemented by EU member states with support from entities like the European Space Agency (ESA) and the European Environment Agency (EEA).
Utility of GMES: Rapid Response Mapping Service
The Copernicus EMS offers rapid response mapping, a crucial component activated during emergencies like natural disasters or accidents.
How Rapid Mapping Works?
Rapid mapping involves acquiring, processing, and analyzing satellite images and relevant data to provide timely information.
It offers several products, including pre-event reference and post-event assessments like first estimates, delineation, and grading of the impacted area.
Application in the Iranian President’s Case
In the case of the Iranian President’s helicopter crash, the EU activated the rapid response mapping service to aid search and rescue operations.
This technology helps locate the crash site and assess the extent of the impact, facilitating swift response efforts.
PYQ:
[2018] With reference to the Indian Regional Navigation Satellite System (IRNSS), consider the following statements:
IRNSS has three satellites in geostationary and four satellites in geosynchronous orbits.
IRNSS covers entire India and about 5500 sq. km beyond its borders.
India will have its own satellite navigation system with full global coverage by the middle of 2021.
Which of the statements given above is/are correct?
Under the PM-WANI scheme, India witnesses a swift rise in public Wi-Fi hotspots, reaching approximately 1,99,896 hotspots nationwide, according to government data.
What is the PM WANI Initiative?
PM Modi launched the Prime Minister Wi-Fi Access Network Interface (PM WANI) in December 2020.
It is an initiative under the Department of Telecommunications (DoT).
It takes forward the goal of the National Digital Communications Policy, 2018 (NDCP) of creating a robust digital communications infrastructure.
Objective: To democratize internet access, particularly in remote and underserved areas.
Implementation: Leverages Public Data Offices (PDOs) established in public spaces like railway stations, banks, post offices, and more. Users can access the internet via Wi-Fi at these locations without requiring a SIM card.
PM-WANI ecosystem consists of four parts:
Public Data Office (PDO): It establishes the Wi-Fi Hotspots and provides internet access to users
Public Data Office Aggregator (PDOA): It provides authorisation and accounting services to PDOs.
App Provider: It displays the available hotspots in the phone’s proximity.
Central Registry: This overseen by the Centre for Development of Telematics maintains details of App Providers, PDOs, and PDOAs.
How to Utilize PM WANI?
To access PM WANI services, users must install the Data PM WANI app on their smartphones.
Through the app, users can connect to nearby public Wi-Fi PDOs.
This application facilitates seamless connectivity to PM-WANI-compliant Wi-Fi hotspots, empowering users to access broadband services conveniently.
Data Plans Offered
PM WANI offers various data plans to suit different usage needs:
Rs 6 plan: 1GB data for 1 day
Rs 9 plan: 2GB data for 2 days
Rs 18 plan: 5GB data for 3 days
Rs 25 plan: 20GB data for 7 days
Rs 49 plan: 40GB data for 14 days
Rs 99 plan: 100GB data for 30 days
Role of Public Data Offices (PDOs)
The PM-WANI scheme includes a provision for establishing Public Data Offices (PDOs) by rural entrepreneurs in remote regions.
These PDOs procure internet bandwidth from telecom service providers or ISPs to offer Wi-Fi services at minimal charges.
This model enables individuals to access the internet even in areas with limited or no data connectivity.
PYQ:
[2018] Which of the following is/are the aim/aims of “Digital India” Plan of the Government of India?
Formation of India’s own Internet companies like China did.
Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
Connect many of our villages to the Internet and bring Wi-Fi to many of our school, public places and major tourists.
Select the correct answer using the codes given below:
The Election Commission of India (ECI) told the Supreme Court that there is no legal mandate to provide Form 17C (account of votes recorded) to any other person other than the candidate or his agent.
What does Article 329(b) say?
It specifically bars courts from intervening in any disputes related to the electoral processduring the active phase of an election—from its notification to the final declaration of results.
This is to prevent any potential delays or disruptions caused by litigation during the election.
About Forms 17A and 17C
As per the Conduct of Elections Rules, 1961, there are two forms that have data on the number of electors and voters — Forms 17A and 17C.
Form 17A: This document, compiled by the Returning Officer for each constituency, lists contesting candidates and registers voter information, including names and symbols.
Form 17C: Form 17C contains the account of votes recorded at each polling station during the election. It is prepared by the Presiding Officer of the polling station after the conclusion of polling. It includes:
EVM identification numbers.
Total number of electors and voters at the polling station.
Number of voters who did not record their votes after signing the register.
Number of voters not allowed to vote.
Total number of votes recorded per EVM.
Part-II of Form 17C: It carries counting results entered on counting day. This form is crucial for any legal challenges to the election results and for candidates to verify results on counting day.
Why is there a Demand to Make Form 17C Data Public?
Activists advocate for greater transparency in election processes.
The high number of polling stations makes it hard for candidates to compile all data.
The Election Commission of India (ECI) is not legally required to publish aggregate voter turnout data.
The ECI ensures that all statutory requirements, including providing Form 17C to candidates, are met.
Discrepancies noted in Form 17C can be contested to maintain election integrity.
Back2Basics: Conduct of Election Rules, 1961
The Conduct of Election Rules, 1961, commonly referred to as the 1961Rules, outline the procedural framework governing various aspects of the electoral process in India.
These rules were formulated under the authority of the Representation of the People Act, 1951.
It serves as the foundational legislation for conducting elections in the country.
Activities covered: Preparation of electoral rolls, the nomination of candidates, the conduct of polling, counting of votes, and the declaration of results.
Regulatory Function: The 1961 Rules incorporate provisions for addressing electoral malpractices, disputes, and grievances, thereby safeguarding the sanctity of elections.
PYQ:
[2017] For election to the Lok Sabha, a nomination paper can be filed by
(a) Anyone residing in India.
(b) A resident of the constituency from which the election is to be contested.
(c) Any citizen of India whose name appears in the electoral roll of a constituency.
PYQ Relevance: Mains: Q) What is the significance of Indo-US defense deals over Indo-Russian defense deals? Discuss with reference to stability in the Indo-Pacific region. (UPSC CSE 2020)
Q) The new tri-nation partnership AUKUS is aimed at countering China’s ambitions in the Indo-Pacific region. Is it going to supersede the existing partnerships in the region? Discuss the strength and impact of AUKUS in the present scenario. (UPSC CSE 2021)
Prelims:
With reference to the ‘Trans-Pacific Partnership’, consider the following statements: (UPSC CSE 2016) 1. It is an agreement among all the Pacific Rim countries except China and Russia. 2. It is a strategic alliance for the purpose of maritime security only. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Note4Students:
Prelims: Global Issues;
Mains: Global Issues; Multipolar World; Russia-China Relations;
Mentor comment: The article discusses the present “no-limits” friendship declared between Russian President Vladimir Putin and Chinese President Xi Jinping, and how it is a defining feature of the emerging multipolar world order. During World War II, the world was divided into – Allied (UK, USSR, US, and China) and Axis (Germany, Italy, and Japan). Eventually after WW II, there was again a division between the US and the USSR which came to be known as the ‘Cold War’ where India adopted its Non-aligned stand. Taking today’s article view i.e. the Russia-China Friendship, the relations between both countries date back to the 17th century, with historical conflicts and territorial disputes. However, the relationship improved significantly after the fall of the Soviet Union in 1991, leading to the establishment of diplomatic relations and the signing of the Treaty of Good-Neighborliness and Friendly Cooperation in 2001. In the present context, we need to study what impact it will have on World order and of course our India also.
Let’s learn.
–
Why in the News?
Chinese President Xi Jinping and Russian President Vladimir Putin declared their ‘no-limits’ friendship just days before the Ukraine war began.
Putin, who was sworn in for his new term recently, will spend two days in China.
The Putin-Xi bromance is not just a bilateral affair, but a harbinger of a new world order.
What are the common grounds for ‘no limits’ friendship?
A Shared Anti-West Sentiment: Both leaders believe the West is trying to hold them back and undermine their influence. This shared grievance has brought them closer together, with Putin and Xi presenting a united front against what they see as a hostile Western world.
Military Cooperation: The two leaders have celebrated military cooperation, particularly during times of heightened tensions such as the US-China trade war. It includes security cooperation, emphasizing their mutual opposition to theWashington-led global consensus.
Economy and Trades: The structure of their bilateral trade shows that Russia mainly supplies raw materials, such as oil, natural gas, and coal, while importing manufacturing and technological products from China.
Russia has also been receiving loans and export credits, with the yuan’s share in the Russian central bank’s foreign currency reserves increasing significantly.
Strategic Partnership: The friendship between Putin and Xi is strategic, aiming to counterbalance U.S. global influence.
The two leaders have been attempting to put economics at the center of their strategic partnership, with Xi’s Belt and Road Initiative (BRI) and Putin’s Eurasian Economic Union (EAEU) aiming to create a single market among Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.
Limitations on their ‘no limit’ friendship:
A Relationship of Unequals: Despite aiming for equal friendship, China’s growing economic and technological might dwarf Russia’s. This power imbalance could create tension in the relationship, especially as China’s dominance continues to grow in Central and West Asia.
Russia may struggle to maintain its status as an equal partner, potentially leading to friction in the alliance.
A Delicate Balance: Beijing may face pressure from its trading countries and internal critics to distance itself from Moscow, especially if Russia’s actions continue to attract international condemnation.
What does it mean for the rest of the world?
New Multipolar System and Geoplotical Risks: Russia has recently shifted its Nuclers Policies making it questionable for European and other Western countries. This shift in power dynamics (Russia-China) could lead to a more fragmented and unstable world, with the West facing a united front from two of its most powerful adversaries.
Potential Risks to Global Energy Security: Russia’s growing dependence on China as an energy export market could give China more leverage over Russia and influence global energy prices and supply.
Expanded Russia-China energy cooperation may undermine Western efforts to isolate Russia economically and limit its ability to wage war in Ukraine.
Implications for Global Gas Markets: If the power of the Siberia pipeline is completed, it could reshape global gas markets by providing a new major source of supply to China and reducing Russia’s dependence on European gas exports.
However, the fate of the pipeline remains uncertain, as China has refrained from committing to it so far, likely because it currently benefits from keeping the project in Limbo.
What does it mean for India?
Strategic Concerns: Russia being a major supporter of the Indian defense system, India can face challenges in ensuring reliable defense supplies after the evolution of such “no limit” friendship and China-Russia cooperation.
Diplomatic Balancing: India aims to balance ties with Russia and West Asia to have a seamless connection with the European Union but faces challenges due to evolving Russia-China relations.
National Interests: India has always been a ‘big brother’ in the Asian region incorporating its Foreign Policies. Seeing the present context, India must navigate the changing geopolitical landscape, leveraging its diplomatic strengths and pursuing a clear long-term strategy.
Conclusion: The economic interests and trade between Russia and China are critical components of their “no-limits” friendship. While their bilateral trade has grown significantly, the relationship is marked by an unequal dynamic, with China’s economic dominance over Russia growing.
We hear a lot of rankers talking of building the General Studies “base” using NCERTs. But since we were so good in school, we almost know what Bhimbetka Caves are and how Ashoka shifted to non-violence after the Kalinga war. So, we ditch the NCERTs and start with our Standard Books.
This is the problem with most UPSC Beginners.
We have this preconceived notion that questions asked in UPSC are generally from relatively unknown, difficult and standard sources – and that while NCERTs is good to read, they are not questions worthy.
But what if we tell you that NCERTs are actually the “key to success”. And they are as questions worthy as it can get.
Look at the following question:
What can France learn from the Indian Constitution’s approach to secularism? [150 Words] [10 Marks] [UPSC Mains 2019 PYQ – GS 2]
If you had read this chapter thoroughly, you could have easily answered this question.
NCERT Class XI – Political Theory – Chapter 8 (Secularism)
Snippet from NCERT XI (Political Theory) – Secularism – Discussing Secularism in France vs India
Again, look at the following question:
Judicial Legislation is antithetical to the doctrine of separation of powers as envisaged in the Indian Constitution. In this context justify the filing of a large number of public interest petitions praying for issuing guidelines to executive authorities. [UPSC Mains 2019 PYQ – GS 2]
This Chapter from NCERT is the base of the above question. If you went thoroughly with your NCERT Notes, you could have easily written a solid answer.
NCERT Class XI – Indian Constitution at Work – Judiciary
Snippet from NCERT XI – Indian Constitution at Work (Judiciary) discussing about Separation & Balance of Power using checks and balances
What are we trying to imply?
The ideal starting point for any UPSC aspirant is NCERTs. They serve as a basic juncture where your understanding of the fundamentals for solving MCQs and analytical skills for long answer writing unite.
Almost all UPSC aspirants start with NCERTs but do they all clear IAS?
The answer is ‘No’.
Though everyone reads NCERTs, 99% of them don’t even know how to utilize NCERTs for Answer Writing. 99% don’t know how to make notes of NCERTs. And 99% of them will not be making it to the final list. How to end up being that successful 1%?
Ranadheer Sir is mentoring a fixed number of students this year, and he believes he is on the way to create magic AGAIN, like he did with UAP Student Animesh.
This is what he did with one of his students. He asked him to make notes from the NCERT Books, and attempt the Samachar Manthan Tests.
And the results are here to be seen.
Within 20 days, he is getting 5/10 in Samachar Manthan Tests.
He is now writing precise answers, with value-added content, lucid language, and rich examples from the NCERT Notes Making.
Since these books are aspirants’ weakest area, you should make them your strength. Follow this session to learn How to Start your Mains Answer Writing with NCERTs.
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Q) ‘Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (UPSC CSE 2022)
Q) Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC CSE 2021)
Prelims: Consider the following statements: (UPSC CSE 2016) 1. The International Solar Alliance was launched at the United National Climate Change Conference in 2015. 2. The Alliance includes all the member countries of the United Nations. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Note4Students:
Prelims: Climate change; Policies and Programs in India
Mains: Climate change policies in India;
Mentor comment: India, as one of the most vulnerable countries to climate change, faces significant challenges due to rising temperatures, changing weather patterns, and environmental degradation. The impact of climate change is evident in the reduction of monsoon duration and rainfall levels, melting Himalayan glaciers, and rising sea levels threatening coastal regions. These changes pose risks to agriculture, food security, water availability, and overall environmental sustainability in the country. This article presents the reasons behind the relative lack of political focus on climate change in India and the potential implications for the country’s future.
Let’s learn.
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Why in the News?
Our Indian politics is overshadowed by merely immediate concerns and political agendas while leaving behind the major challenges like Climate Change and addressing its impacts.
This absence stands out even more when we consider the urgent need for sustainable development amidst worldwide environmental challenges.
Current State of Climate Change in India
According to India’s first-ever Climate Change Assessment Report carried out in 2020, the country’s average temperature is expected to rise by 4.4°C by the end of 2100. A decline in monsoon rainfall since the 1950s has already been observed. A 2°C rise in global average temperatures will make India’s summer monsoon highly unpredictable. At 2.5°C warming, melting glaciers, and loss of snow cover are expected to threaten the stability and reliability of northern India’s glacier-fed rivers. Global sea level has risen about 8 inches in the last century, which is expected to nearly double in this century.
The Present Dilemma: Prioritization of Economic Growth
As a developing nation, India prioritizes economic growth and development as a means to alleviate poverty and improve the standard of living for its citizens.
This focus often leads to a trade-off between environmental protection and industrial expansion, with climate change considerations taking a lower priority in the political discourse.
Challenges associated with generating political will and public support for climate action:
Lack of Immediate Visibility: The effects of climate change are often gradually visible to the general public. This lack of immediate consequences makes it challenging for politicians to garner public support for climate action, as voters tend to prioritize issues that directly impact their daily lives.
Competing Priorities and Short-term Thinking: Indian politics is often characterized by a focus on short-term goals and immediate concerns, such as job creation, infrastructure development, and social welfare schemes. Climate change, with its long-term implications, struggles to gain traction in a political landscape dominated by these pressing issues.
Perceived Conflict with Development Agenda: Some politicians and policymakers view climate action as a hindrance to economic development, fearing that it may limit industrial growth and restrict access to energy resources. This perception creates a barrier to implementing comprehensive climate policies.
Lack of Awareness and Education: Despite growing global awareness of climate change, there is still a need for greater education and understanding of the issue among the general public and political leaders in India.
Government Policies to Address Climate ChangeInternational Solar Alliance (ISA):
India collaborates with solar energy-rich countries to promote solar energy utilization and reduce reliance on non-renewable energy sources. One Sun, One World, One Grid Project: This project seeks to provide energy (SDG 7 – affordable and clean energy) to around 140 countries through a common grid that transfers solar power. By promoting solar energy on a global scale, this initiative addresses energy challenges and supports sustainable development. Swachh Bharat Mission: It focuses on cleanliness and sanitation (SDG 6 – Clean Water and Sanitation) across urban and rural areas in India. By ensuring access to sanitation facilities and promoting cleanliness, this initiative contributes to environmental health and sustainability. COP26 Glasgow Summit Commitments: During the COP26 summit, India made significant commitments to combat climate change, including achieving net zero emissions by 2070, meeting 50% of energy requirements from renewable sources by 2030, reducing carbon emissions, increasing non-fossil energy capacity, and decreasing carbon intensity by 2030. (SDG 13 – mitigating climate change).The Climate Action Tracker gives India an overall rating of “Highly Insufficient” in its policies and actions tracking, based on 2030 projections. Recent Judicial Stance: M.K. Ranjitsinh and Others vs Union of India (March 2024): The Supreme Court of India ruled that the people of India have the right to be free from the adverse effects of climate change by drawing upon Article 21 and Article 14 of the Indian Constitution. Recent Legislations: Some important policies and laws covering the energy sector emerged, which included the National Electricity Plan 2023, the National Green Hydrogen Mission and the Energy Conservation (Amendment) Act, 2022.
The Way Forward: To elevate climate change as a priority in Indian politics, a multi-pronged approach is necessary:
Emphasizing the economic benefits of climate action: Highlighting the potential for green jobs, sustainable development, and long-term cost savings can help align climate action with economic interests.
Promoting public awareness and engagement: Investing in education campaigns and fostering grassroots movements can help raise awareness and generate public pressure for climate action.
Incorporating climate change into political manifestos: Encouraging political parties to include climate change as a key issue in their election manifestos can help mainstream the topic and ensure its prominence in the political discourse.
Fostering cross-party collaboration: Building consensus and cooperation across political parties on climate change can help ensure continuity and long-term commitment to climate action, regardless of which party is in power.
The prevalence of Congenital Anomalies and Neurological Challenges in newborns highlights the need for adequate Antenatal and Perinatal care to address them.
Key observations made by the National Family Health Survey (NFHS-5):
Perinatal mortality rates stand at 32 for 1,000 pregnancies, neonatal mortality rates at 25 for 1,000 live births, and hypertensive disorders in pregnancy remain a leading cause of maternal death.
Cause of Maternal and Perinatal Mortality:Preeclampsia (PE) is a significant cause of maternal and perinatal morbidity and mortality, with early onset PE posing higher risks.
Combination of Maternal factors and Biomarkers: Screening based on maternal risk factors alone has suboptimal performance, while a combination of maternal factors and biomarkers like mean arterial pressure, uterine artery pulsatility index, and serum placental growth factor can improve detection rates significantly.
Early Intervention with Aspirin Prophylaxis: First-trimester screening models, like the FMF prediction algorithm, have been effective in identifying high-risk pregnancies for preterm PE, allowing for early intervention with aspirin prophylaxis to reduce the incidence of preeclampsia.
What is Pre-eclampsia?
Preeclampsia is a complication of pregnancy. Preeclampsia, high blood pressure, and high levels of protein in urine indicate kidney damage (proteinuria), or other signs of organ damage.
Preeclampsia usually begins after 20 weeks of pregnancy in women whose blood pressure had previously been in the standard range.
Challenges to cure Pre-eclampsia (PE):
Complex Screening Protocols: Effective screening requires a combination of maternal history, demographics, color Doppler ultrasound, mean arterial pressure, and placental biomarkers, which may not be uniformly available or implemented.
Limited Resources: Not all healthcare facilities have access to advanced screening tools and technologies like color Doppler ultrasound and placental biomarker testing.
Lack of Awareness: Pregnant women may not be aware of the symptoms and risks associated with pre-eclampsia, leading to delayed presentation and diagnosis.
Delayed Intervention: Identifying high-risk pregnancies early is crucial, but delays in screening and diagnosis can lead to missed opportunities for timely intervention.
Pharmacological Challenges: Ensuring timely pharmacological intervention, such as aspirin prophylaxis, requires adherence to established protocols, which may only sometimes be followed.
Logistical Issues: Implementing widespread screening and management protocols involves logistical challenges, including training healthcare providers and ensuring the availability of necessary equipment.
Complexity of the Disorder: The systemic nature of pre-eclampsia, affecting multiple organs, complicates its management and requires a multidisciplinary approach.
Programs in India:
“Samrakshan” program: The Indian Radiological and Imaging Association’s (IRIA) “Samrakshan” program aims to reduce pre-eclampsia from 8%-10% to 3% and fetal growth restriction from 25%-30% to 10% by the end of the decade.
The program focuses on spreading awareness, screening for pre-eclampsia and fetal growth restriction, and ensuring comprehensive care throughout pregnancy.
Way Forward:
Early Detection and Management: Early detection through regular prenatal care, including blood pressure monitoring and urine testing for protein, is crucial in managing pre-eclampsia.
Timely intervention can help prevent severe complications and ensure the well-being of both mother and baby.
Promoting Awareness and Education: Raising awareness about the signs and symptoms of pre-eclampsia among pregnant women is essential for early recognition and prompt action.
Education on risk factors, preventive measures, and the importance of regular antenatal check-ups can significantly impact maternal and neonatal outcomes.
Ensuring Access to Quality Maternal Healthcare: Access to quality maternal healthcare services, including skilled antenatal care, monitoring, and timely interventions, is vital in addressing pre-eclampsia and reducing maternal mortality rates.
Empowering healthcare providers with the knowledge and resources to manage pre-eclampsia effectively is key to ensuring safe motherhood.
Collaborative Efforts for Maternal Health: Collaboration between governments, healthcare institutions, non-profit organisations, and the private sector is essential in implementing comprehensive maternal health programs that prioritise the prevention, early detection, and management of pre-eclampsia.
Conclusion: By spotlighting pre-eclampsia and emphasising the importance of early detection, awareness, access to quality care, and collaborative efforts, we can strive towards ensuring safe motherhood for all women, safeguarding the health and well-being of mothers and their babies.
Mains PYQ:
Q Identify the Millennium Development Goals (MDGs) that are related to health.Discuss the success of the actions taken by the Government for achieving the same.(UPSC IAS/2013)
The Russia-Ukraine war persists with no end in sight. Russia’s nuclear drills and plans to station weapons in Belarus escalate Global tensions and are deeply concerning.
What is the NPT and how does it address Russia’s actions?
The NPT (Nuclear Non-Proliferation Treaty) is a multilateral agreement aimed at limiting the spread of nuclear weapons through three pillars: non-proliferation, disarmament, and peaceful use of Nuclear energy.
It defines Nuclear Weapon States (NWS) as those that had manufactured and detonated a nuclear explosive device before 1967, with all other states considered non-nuclear weapon states (NNWS).
The NPT has addressed Russia’s actions in several ways:
Russia, as a NWS, is obligated under Article VI to pursue negotiations in good faith on effective measures relating to nuclear disarmament. However, Russia’s invasion of Ukraine has increased the salience of nuclear weapons in ways that threaten to erode this bargain.
The NPT’s 2022 Review Conference specifically condemned overt nuclear threats, and the Treaty on the Prohibition of Nuclear Weapons (TPNW) called for nuclear deterrence to be delegitimized.
The NPT requires NNWS to accept International Atomic Energy Agency (IAEA) safeguards on all nuclear materials on their territories. However, the IAEA has found several states, including Russia, in non-compliance with their safeguards agreements.
The NPT’s review process, where state parties convene every five years to review the implementation of the Treaty, has been unable to reach a consensus on condemning Russia’s nuclear threats due to Russia’s objections.
The Shift in Nuclear Policy of Russia:
Criticism by Western countries: The international community has expressed concern over Russia’s nuclear rhetoric, calling for accountability. Western states and allies condemn Russia’s actions and seek to address them through initiatives like the United Nations and the NPT (Treaty on the Non-Proliferation of Nuclear Weapons) to uphold norms and deter irresponsible behaviour.
Changing Nuclear Threshold and Policy: Russia appears to be considering lowering the threshold for nuclear weapon use, which could set a dangerous precedent.
Traditionally, Nuclear Weapons were reserved for existential threats, but Russia is now signalling a potential first-use policy even for non-existent threats.
Erosion of Mutually Assured Destruction (MAD): For decades, the principle of Mutually Assured Destruction (MAD) deterred the use of nuclear weapons. Russia’s current stance threatens this principle, suggesting that nuclear weapons could be used in conflicts that do not directly jeopardize National survival.
What are the consequences of Russia’s nuclear rhetoric for Global Security?
It has raised the risk of nuclear escalation and use, as Russia has purposefully increased the level of risk to discourage Western support for Ukraine and instill fear. Russia’s actions may encourage other nuclear-armed states, like Iran and North Korea, to adopt similar tactics.
This undermines the long-standing separation between Conventional and Nuclear warfare.
Undermined Strategic Stability and the Global Nuclear Order: Russia’s actions have broken down nuclear guidelines and norms, advocating for nuclear use against Ukraine and NATO. This has contributed to the return of nuclear arms competition on the global stage.
It has caused alarm and fear among Russia’s neighbors, who worry that if Russia is not stopped in Ukraine, it may turn aggression against other territories. Small countries like Moldova, Georgia, and even Russia’s allies like Kazakhstan fear becoming Putin’s next target.
It has required the international community to respond with strong deterrence and accountability measures. The West has emphasized that Russian nuclear use would have devastating consequences.
Holding Russia accountable through multilateral initiatives is crucial to upholding norms and deterring further irresponsible behaviour.
Way forward:
Strengthen International Diplomatic Engagement: Initiate high-level dialogues involving all nuclear-armed states to reinforce commitments to non-proliferation treaties and discourage the lowering of nuclear use thresholds.
Revise and Reinforce Security Assurances: Provide renewed and clear security assurances to non-nuclear states to discourage them from pursuing nuclear weapons. Revisit agreements like the Budapest Memorandum to ensure their effectiveness and credibility.
Mains PYQ:
Q (UPSC IAS/2022)
(a): Russia and Ukraine war has been going on for the last seven months. Different countries have taken independent stands and actions keeping in view their own national interests. We are all aware that war has its own impact on the different aspects of society, including human tragedy. What are those ethical issues that are crucial to be considered while launching the war and its continuation so far? lllustrate with justification the ethical issues involved in the given state of affair.
(b): Write short notes on the following in 30 words each:
The sudden demise of Iranian President Ebrahim Raisi in a helicopter crash has sent shockwaves through the Islamic Republic, grappling with the implications for the country’s future leadership.
India is closely monitoring the unfolding of Iran’s succession plan, given the significant geopolitical and economic stakes involved.
India and Iran have recently signed a 10-year agreement to develop and operate a terminal at the strategic Chabahar Port, enhancing trade connections with Afghanistan and Central Asian countries.
BACK2BASICS: India-Iran Bilateral Relations:
Pre-Cold War Era: India and Iran span centuries of relationship which is marked by meaningful interactions. Both countries shared a border till 1947 with several common features in their language, culture, and traditions. They established their diplomatic ties in March 1950.
Cold War Era (1950-1990): India followed its Non-alignment policy, but paralleling strong links with the Soviet Union (USSR), while Iran was an open member of the Western Bloc and enjoyed close ties with the United States.
Therefore, the relations between India and Iran suffered due to their differing political interests.
Post Cold-War Era:
Iran’s continuously supported Pakistan in the India–Pakistan border conflicts. This was also a major reason that India had expressed strong opposition to Iran’s Nuclear program.
India’s close relations with Iraq during the Iran–Iraq War greatly strained bilateral ties.
Oil Trade: In 2019, due to the sanctions imposed by the US on Iran, India stopped importing crude oil from the country. Before 2019, India was the second biggest buyer of oil from Iran.
During recent times in 2021, both countries continued to collaborate in supporting the broad-based anti-Taliban government until the Taliban recaptured Afghanistan.
Other Trades:
India-Iran bilateral trade during the FY 2020-21 was USD 2.1 billion, a decrease of 56 % as compared to USD 4.8 billion during FY 2019-20.
Our Exports to Iran: rice, tea, sugar, fresh fruits, drugs/pharmaceuticals, man-made staple fibers, electrical machinery, artificial jewelry etc.
Our Imports from Iran: dry fruits, inorganic/organic chemicals, glass and glassware, natural or cultured pearls, precious or semiprecious stones, leather, gypsum, etc.
About Raisi’s Rise and Hardline Agenda:
Ebrahim Raisi, had politically risen through the ranks of Iran’s theocracy and was widely seen as a leading candidate to succeed.
His presidency was part of a broader consolidation of power by hardliners dedicated to shoring up the pillars of the Islamic Republic against dissent and external threats.
Raisi’s death poses significant challenges for the conservative hardliners who had backed him as a unifying figure loyal to the Supreme Leader.
Raisi’s demise opens the door for the ambitions of the powerful Iranian Revolutionary Guards Corps (IRGC), which has exploited its constitutionally mandated roles to expand its political and economic influence.
Raisi’s death introduces great uncertainty into the succession process, with various factions and figures vying for influence.
What are the potential implications of Iran’s succession plan for India?
Trade ties: The death of President Raisi could impact India-Iran trade relations, which reached $2.33 billion in 2023-24 under Raisi’s policies.
Regional stability: India has enjoyed good ties with Iran and has been involved in key projects like the development of the Chabahar port, which serves as India’s gateway to Central Asia.
The succession plan in Iran could affect regional stability and India’s relation to energy security and connectivity.
Foreign policy alignment: Changes in Iran’s stance towards regional conflicts and international agreements could influence India’s foreign policy decisions in the Middle East.
Security concerns: Instability or changes in Iran’s approach to regional conflicts or its relations with other countries could impact India’s security calculations.
Way Forward
India needs to prioritize economic projects like the Chabahar Port, which are crucial for regional trade and India’s strategic interests, ensuring long-term agreements and investments. Further, maintaining a delicate balance between US relations and Iran ties by leveraging diplomatic channels to navigate sanctions can help.
Mains PYQ:
Q In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to its situation? (UPSC IAS/2018)
Q The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyze India’s energy policy cooperation with West Asian Countries. (UPSC IAS/2017)
The RBI has issued draft regulations for a Harmonized Prudential Framework and revised DCCO criteria, to enhance the Regulatory Framework for long-term (infrastructure, non-infrastructure, and commercial real estate sectors) project financing.
RBI’s purpose behind this is to regulate and supervise payment and settlement systems in the country, ensuring safe, secure, and efficient mechanisms for financial transactions.
What is the Date of Commencement of Commercial Operations (DCCO)?
The DCCO is a critical milestone for project loans, indicating the start of revenue-generating activities for the project.
Banks maintain the DCCO for project loans for several key reasons:
Asset classification: The DCCO is crucial for determining the asset classification of a project loan. If the project fails to commence commercial operations by the stipulated DCCO, the loan may be classified as a Non-performing asset (NPA).
Restructuring: The DCCO is used as a reference point for allowing the restructuring of project loans without treating it as an NPA. RBI guidelines permit banks to extend the DCCO by up to 1 year for commercial real estate projects and up to 2 years for infrastructure projects, without downgrading the asset classification, provided certain conditions are met.
Viability assessment: When extending the DCCO, banks must satisfy themselves about the viability of the project and the restructuring plan.
Provisioning: If a loan remains in the pre-commencement of the commercial operations phase for an extended period, banks may need to make higher provisions, considering the risk involved.
Monitoring and control: Maintaining a clear DCCO allows banks to monitor the project’s progress and take timely action if there are delays or cost overruns. This helps in managing the bank’s exposure and mitigating risks.
Key Highlights of the Proposed New Framework:
Income Recognition and Asset Classification: The draft framework outlines guidelines for Income Recognition, Asset Classification, and Provisioning of Advances for Projects Under Implementation (IRACP-PUIMP).
It emphasizes the importance of monitoring stress in projects and initiating resolution plans proactively.
Increase in general provisioning at the construction stage from 0.4% to 5% on all existing and fresh exposures, phased over three years (2% for FY25, 3.5% for FY26, and 5% for FY27).
Restructuring Norms: The RBI has prescribed norms for restructuring exposure in projects due to changes in the DCCO.
Lenders are required to have a board-approved policy for resolving stress in projects, triggered by a credit event during the construction phase.
Provisioning can be reduced to 2.5% and 1% at the operational phase if certain conditions are met.
Consortium Arrangements: In projects financed under consortium arrangements, specific exposure limits have been set based on the aggregate exposure of lenders.
Individual lenders must maintain a Minimum Exposure Percentage to ensure a balanced risk-sharing mechanism.
Financial Closure and Repayment Structure: The framework mandates that financial closure must be achieved before the disbursement of funds.
It discourages moratoriums on repayments beyond the DCCO period and sets guidelines for the repayment tenor not exceeding 85% of the economic life of the project.
Projects must demonstrate a positive net operating cash flow to cover all repayment obligations and a reduction in total long-term debt by at least 20%.
Net Present Value (NPV) Requirement: A positive NPV is a prerequisite for any project financed by lenders. The RBI stresses the importance of reevaluating the project NPV annually to ensure financial viability and address credit impairment risks.
Guidelines for a standby credit facility to fund cost overruns due to delays, with incremental funding of 10% of the original project cost.
ICRA Observations:
ICRA set up in 1991 is an independent and professional investment Information and Credit Rating Agency. It observed the proposed new framework could have the following implications:
Profitability Impact: Higher provisioning requirements for projects under implementation could impact the profitability of Non-banking Financial Companies and Infrastructure Financing Companies. The impact will be spread over 3 years.
Funding Costs: Estimated increase in funding costs by 20-40 basis points as lenders build additional risk premiums.
Major banks like SBI, Union Bank of India, and Bank of Baroda do not foresee significant impacts, although the pricing of loans may need adjustments.
Way Forward:
Enhanced Monitoring and Compliance: Implement robust monitoring mechanisms to ensure compliance with the new regulations. Regularly review and update the prudential framework to adapt to evolving market conditions.
Capacity Building: Train bank staff and stakeholders on the new regulatory requirements and best practices for project financing.
Prelims PYQ:
Q The Reserve Bank of India regulates the commercial banks in matters of: (UPSC CSE 2013)
liquidity of assets
branch expansion
merger of banks
winding-up of banks
Select the correct answer using the codes given below.
It was formed as part of the Environmental Protocol (Madrid Protocol, 1991) to the Antarctic Treaty, which came into force in 1998.
Aim: To advice and formulate recommendations on environmental protection measures in the Antarctic region.
Composition: It consists of representatives from the consultative parties to the Antarctic Treaty, which includes countries active in Antarctic research and governance.
Functions:
Environmental Impact Assessment (EIA): The CEP oversees the EIA process for activities conducted in the Antarctic region to ensure they minimize environmental impacts.
Site Inspections: It conducts inspections of Antarctic facilities and activities to verify compliance with environmental regulations.
Scientific Research: The CEP promotes scientific research on Antarctic ecosystems and advises on measures to conserve biodiversity.
Waste Management: It develops guidelines for waste management and pollution prevention in the Antarctic, aiming to minimize human impact on the environment.
Policy Formulation: The CEP formulates policies and guidelines related to environmental protection in the Antarctic Treaty.
Back2Basics: Madrid Protocol, 1991
The Madrid Protocol refers to the Protocol on Environmental Protection to the Antarctic Treaty.
It is an international agreement that was adopted in 1991 and entered into force in 1998.
Key aspects of the Madrid Protocol include:
Environmental Principles: The Protocol outlines principles for the protection of the Antarctic environment, including the conservation of living resources, the prevention of pollution, and the protection of wilderness and scientific values.
Designation of Protected Areas: It designates certain areas of Antarctica as specially protected areas (SPAs) and sites of special scientific interest (SSSI), where specific environmental protection measures apply to safeguard their ecological, scientific, and aesthetic values.
Waste Management: It establishes guidelines and regulations for waste management and pollution prevention in Antarctica, aiming to minimize human impact on the environment and prevent pollution of the Antarctic ecosystem.
Prohibition of Mineral Resource Activities: The Protocol prohibits all mineral resource activities, including exploration and exploitation, in Antarctica. This provision aims to preserve the pristine and fragile nature of the Antarctic environment and prevent the potential environmental damage associated with mineral extraction.
Consultative Mechanisms: The Protocol establishes mechanisms for consultation and cooperation. This includes the CEP, which provides advice and recommendations on environmental matters to the Antarctic Treaty Consultative Meeting (ATCM).
PYQs:
[2021] How do the melting of the Arctic ice and glaciers of the Antarctic differently affect the weather patterns and human activities on the Earth? Explain.
[2011] The formation of ozone hole in the Antarctic region has been a cause of concern. What could be the reason for the formation of this hole?
(a) Presence of prominent tropospheric turbulence; and inflow of chlorofluorocarbons.
(b) Presence of prominent polar front and stratospheric clouds; and inflow of chlorofluorocarbons.
(c) Absence of polar front and stratospheric clouds; and inflow of methane and chlorofluorocarbons.
(d) Increased temperature at polar region due to global warming.
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.
Treatment Challenges
Currently, there are no established effective treatments for PAM.
Medical interventions typically involve a combination of drugs, including amphotericin B, azithromycin, fluconazole, rifampin, miltefosine, and dexamethasone.
The National Centre for Polar and Ocean Research, Goa, through the Ministry of Earth Sciences (MoES), has organised the meeting, which will be attended by the 56 member countries of the Antarctic Treaty.
What is the Antarctic Treaty Consultative Meeting (ATCM)?
ATCM is the primary forum for discussing and coordinating activities related to the Antarctic Treaty System.
It was established under the Antarctic Treaty, which was signed in 1959 and entered into force in 1961.
It serves as the annual meeting of the parties to the Antarctic Treaty, known as Consultative Parties.
The ATCM adopts legally binding agreements, known as Antarctic Treaty Measures (ATMs), as well as non-binding recommendations on various matters.
Decisions within the ATCM are made by consensus among the Consultative Parties.
The ATCM established the Committee for Environmental Protection (CEP) as a subsidiary body to provide advice and recommendations on environmental matters.
India had last hosted the ATCM in New Delhi in 2007.
India’s Agenda at ATCM 46
During the Kochi meet, India will table its plan to construct Maitri II before the members.
Any new construction or initiative in Antarctica requires the ATCM’s approval.
About Antarctic Treaty
Details
Signing and Entry into Force
Signed on December 1, 1959 at Washington DC.
Entered into force on June 23, 1961.
12 Initial Countries: Argentina, Australia, Belgium, Chile, France, Japan, New Zealand, Norway, South Africa, the USSR, the UK, and the US.
Objective
Ensure Antarctica remains exclusively for peaceful purposes, free from international discord.
Key Provisions
Art. I: Antarctica shall be used for peaceful purposes only
Art. II: Freedom of scientific investigation in Antarctica and cooperation
Art. III: Scientific observations and results from Antarctica shall be exchanged and made freely available
Antarctic Treaty Secretariat (ATS), established in 2004, serves as the administrative hub for the Antarctic Treaty System.
Annual Antarctic Treaty Consultative Meetings (ATCM) where member states discuss treaty implementation and cooperation.
Environmental Protection
Promotes protection of the Antarctic environment.
Prohibits activities causing pollution or environmental damage
Mineral Resource Exploitation
Bans mining activities until at least 2048.
Requires consensus for any review or modification
Membership
54 parties as of 2024.
29 Consultative Parties actively participate in decision-making.
25 Non-Consultative Parties.
India ratified the treaty in 1983.
Madrid Protocol
Adopted in 1991.
Entered into force in 1998.
Strengthens environmental protection measures in Antarctic.
India in Antarctica
1. Governance:
Since 1983, India has been a consultative party to the Antarctic Treaty.
Of the 56 nations that are part of the Antarctic Treaty, 29 have consultative party status.
In this capacity, India votes and participates in all key decision-making processes regarding Antarctica.
India has undertaken scientific research in Antarctica since 1981.
2. Scientific Expeditions:
The first Indian Antarctica research station, Dakshin Gangotri, was set up in 1983, some 2,500 km from the South Pole in Queen Maud Land. The station operated till 1990.
In 1989, India set up its second Antarctica research station, Maitri, in the Schirmacher Oasis, a 3-km wide ice-free plateau with over 100 freshwater lakes.
It is still operational and located about 5 km from Russia’s Novolazarevskaya Station, and 90 km from Dakshin Gangotri.
In 2012, India inaugurated Bharati, its third Antarctica research station, located around 3,000 km east of Maitri, on the Prydz Bay coast.
Although the station focuses on oceanographic and geologic study, the Indian Space Research Organisation (ISRO) utilises it for receiving Indian Remote sensing Satellite (IRS) data.
India plans to open a new station, Maitri II, a few kilometres from the ageing Maitri station. Operations are set to begin by 2029.
In 2022, India enacted the Antarctic Act, reaffirming its commitment to the Antarctic Treaty.
About the National Centre for Polar and Ocean Research (NCPOR)
NCPOR is an Indian research and development institution, situated in Vasco da Gama, Goa.
It is an autonomous institution of the Department of the Ministry of Earth Sciences, established in 1998.
It is responsible for scientific and strategic endeavors in the Polar Regions (Arctic and Antarctic), the Himalayas, and the Southern Ocean.
PYQ:
[2015] The term ‘IndARC’ sometimes seen in the news is the name of
(a) An indigenously developed radar system inducted into Indian Defence.
(b) India’s satellite to provide services to the countries of Indian Ocean Rim.
(c) A scientific establishment set up by India in Antarctic region.
(d) India’s underwater observatory to scientifically study the Arctic region.
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