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  • India could lead the G20 agenda in a unique way

    G20

    Context

    • The G20, or Group of 20, has emerged as the primary venue for international economic and financial cooperation. India assumed the presidency of the powerful grouping G20 on 1 December 2022, symbolising the motto and showcasing its philosophies of “Vasudhaiva Kutumbakam”, or “One Earth, One Family, One Future”.

    G20

    What One Earth, One Family, One Future suggests?

    • India committed to making India’s year of chairmanship one that will focus on “healing our ‘One Earth’, creating harmony within our ‘One Family’, and giving hope for our ‘One Future’ and LiFE (Lifestyle for Environment).

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    What is Troika?

    • The troika means previous, current, and incoming presidency which comprise Indonesia, India, and Brazil, respectively.
    • The troika is leading the global agenda at G20 in the current turbulent economic times.
    • Beyond being a forum for policy discussions, the G20 plays the role of reconciling the irreconcilable.
    • The number of talks and years the group has been together has resulted in a mixed bag of success.

    How India should set up a global agenda: Proposed principles

    • Democratising the process of setting the agenda: While setting up the global agenda, it is critical to bring together all the partner nations to understand their priorities. It will ensure diversity, equity, inclusivity, sustainability, transparency, and long-term commitment. This can also help ensure that the domestic policies are aligned and support global priorities.
    • Strike a balance between the needs of developing and developed countries: Since India has a greater responsibility to shoulder, it should not work and seem biased. Similarly, developed nations should instead exercise greater caution with their rich resource pools. To create a win-win scenario rather than a zero-sum game, we must think in terms of multilateralism.
    • Critical to focus on determined priorities: It is critical to prevent the G20 from suffering as other multilateral forums such as the World Trade Organization (WTO) do from an over-expansion of its mandate. While being ambitious in their approach, it is crucial to set defined, limited long-term priorities.
    • Set concrete, measurable, and tangible goals: Measurable outcomes with short, medium, and long-term objectives are crucial. Financial considerations must be made in addition to ensuring inclusivity, sustainability, and accountability.
    • Prevent reinventing the wheels: To encourage faster mutual growth, it is necessary to prevent duplication of efforts. It is important to prevent duplication of existing international institutions, fragmentation of financial resources, and the weakening of the coordinating role of the existing multilateral organisations. The ‘cooperative and collaborative frameworks are key to successful outcomes.
    • Prejudice-free dialogues are required to promote solidarity: Prejudices on international platforms can pose a threat to global security. Dialogue as an antidote is a force for conflict prevention, management, and resolution.
    • Mutual safeguarding is necessary: Mutual safeguarding from disguised elements of neo-colonialism and hegemony is essential for cutting through the socio-cultural and geopolitical barriers between the Global South and the Global North.
    • The principle of Antyodaya (rise of the last person:): The global lens must capture every aspect of a community through inclusive dialogues, from the most marginalised to the most privileged. It is crucial to set the vertical and horizontal plans on a global and national level with the ‘last person standing in line’ in mind.

    G20

    India’s current global Image

    • India for global governance: While India’s successes are being assessed and unprecedented hopes are being expressed about our future, the country’s trust in the global governance architecture is evident through several examples from the recent past, like the roll-out of COVID-19 vaccines in India as well as remarkable vaccine diplomacy initiative ‘Vaccine Maitri’.
    • Fastest growing economy: With one of the world’s largest and fastest-growing economies, the country has earned its stripes during tough external and internal times.
    • India among the tops in global climate change performance index: Similarly, India has been ranked among the top five countries under the global Climate Change Performance Index. Moreover, it has taken the lead in spearheading the transition towards cleaner energy sources.
    • Social capitalism nature of economy: With its social capitalism, India has earned a geopolitical sweet spot in the world.

    G20

    Conclusion

    • India can lead the G20 agenda in a unique way the global community has never witnessed. Keeping the essential principles in mind when developing agendas, action-oriented plans, and decisions through collaborative efforts have the potential to yield revolutionary and positive results. The vision of shaping a new paradigm of human-centric globalisation is promising, provided the Global North and South communities provide equal support.

    Mains question

    Q. India assumed the presidency of the powerful grouping G20 with a motto One Earth, One Family, One Future. In this backdrop how India can set up an agenda for future and not only for a period of presidentship.

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  • [Sansad TV] Perspective: Vehicle Scrapping Policy

    [Sansad TV] Perspective: Vehicle Scrapping Policy

    Context

    • All vehicles owned by central and state governments, including buses owned by transport corporations and public sector undertakings, that are older than 15 years will be de-registered and scrapped starting April 1.
    • This has been announced by the Ministry of Road Transport & Highways (MoRTH) through a notification.

    Vehicle Scrappage Policy, 2021

    scrap
    • As per the notification, disposal of such vehicles should be ensured through the Registered Vehicle Scrapping Facility after the expiry of the fifteen years from the date of initial registration of the vehicle.
    • Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after 15 years.

    Key Features

    • Fitness testing: The government plans to set up between 450-500 automated vehicle fitness testing stations across India on a PPP basis. Private vehicles – which are over 20 years old – will have to undergo fitness tests, at an estimated cost of Rs 300-400 per test.
    • Scrappage: A total of 60-70 vehicle scrapping centers will also be built, situated no further than 150-200 kilometers away from any location in India.
    • Green Tax: Vehicles that pass the automated tests will be subjected to a ‘green tax’, which will see owners shell out an additional 10 percent to 25 percent of road tax at the time of the renewal of the vehicle’s fitness certificate, along with re-registration fees.
    • Penalties: Those who choose to drive a vehicle that has failed the automated test will face substantial penalties, and such vehicles could also be impounded.
    • Choice of owners: The scrappage policy leaves the choice of scrapping to the owner of the vehicle, with MoRTH saying the automated tests will place emphasis on vehicle fitness, and not its age.
    • Exemptions: The rules, however, shall not apply to the special purpose vehicles, which include armoured and other specialised vehicles used for operational purposes for the defence of the country and for the maintenance of law and order and internal security.
    • Disincentives: As a disincentive, increased re-registration fees would be applicable for vehicles 15 years or older from the initial date registration.

    Why need such a policy?

    • Clean mobility: More than one crore of vehicles on India’s roads contribute greatly to rising pollution levels, as well as their tendency to be less fuel-efficient towards the end of their life.
    • Reducing oil import: The promotion of clean mobility necessitates a reduction in the country’s fuel import bills, and a reduction in emissions is a pressing need at this time.
    • Road safety: Such vehicles are also inherently unsafe and can be a threat to their occupants as well as other road users.
    • Consumer benefits: Scrapping an old vehicle and replacing it with a new one will bring substantial monetary benefits for motorists, in addition to reducing emissions and enhancing fuel efficiency.
    • Emission control: The mere implementation of BS6 norms won’t help in the reduction of the pollution being caused by the already inefficient vehicles on the roads.

    Benefits for a vehicle owner

    • Rebate offer: States and Union Territories will provide up to 25% tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.
    • Discount on new purchase: Once the vehicle has been scrapped, the owner will receive anywhere between four to six percent of their old vehicle’s ex-showroom price, and a scrappage certificate.
    • Considerate savings: This will essentially make a new vehicle cheaper for someone who has scrapped their old vehicle, with potential discounts in the range of Rs 30,000 (for a car costing Rs 6 lakh) to Rs 50,000 (for a car costing Rs 10 lakh).

    Significance of scrappage policy

    • Investment and Employment: The policy will attract investment of over Rs 10,000 crore, and generate 50,000 jobs in the country.
    • Scrap yard economics: Proper recycling of raw materials obtained from the scrapping will help reduce the import of materials such as aluminium, copper, steel and more.
    • Vehicle price control: With the potential to recycle up to 99 percent of materials used in a vehicle, raw material costs are estimated to drop by as much as 40 percent.
    • Transition to EVs: There’s also a possibility to derive materials needed for local production of lithium-ion batteries from scrapping older vehicles, which could help drive the growth of the EV business.
    • Circular Economy: A circular economy depends on reuse, sharing, repair, and refurbishment, remanufacturing and recycling of resources to create a closed-loop system, minimizing the use of resources, generation of waste, pollution and carbon emissions.
    • Demand boost: Globally, a scrappage policy has been followed by a boost in demand in the auto manufacturing sector, especially in Europe and the US.
    • Steel sector boost: Most steel-producing countries are trying to bring down emissions by shifting from iron-ore-based production to scrap-based production.
    • Emission control: As older vehicles pollute the environment 10 to 12 times more, and estimated that 17 lakh medium and heavy commercial vehicles are more than 15 years old.

    Issues with the scrappage policy

    • Lack of scrappage infrastructure: Scrapping in India is highly unorganized. We have a perfect example of ships scrappage where it is not largely mechanized.
    • Advisory nature: This policy has only ‘advised’ the state governments and the automobile industry to provide voluntary incentives to the owners of old vehicles.
    • No initial incentivization: The central government has not committed to make it a fiscal stimulus strategy for quicker renewal of ageing, heavy-duty vehicle fleet with BS-VI vehicles — or to link other segments with targeted electrification.
    • Fleet renewal: The focus on targeted fleet renewal for maximum emissions gains is still weak.
    • Burden on States: The proposed policy puts the entire onus of incentivizing on the state governments. They have been advised to waive off a big chunk of road tax and registration fees on replacement vehicles.
    • Expected revenue loss: These are important sources of state revenue, and the reaction of the state governments is still not known.

    What can be an effective strategy?

    (1) For Transportation vehicles

    • More nuanced approach: Consider that some truck owners may want to only dispose of the very old trucks without replacing them. But others may want to scrap and replace the older trucks.
    • Targeting end-of-life vehicles:  In that case, a rebate can be given to the owners of end-of-life vehicles who are interested in ‘only scrapping’ the vehicle without immediately replacing them.

    (2) For Personal vehicles

    • EV boost: For them, the central incentive can be linked with the replacement with electric vehicles.

    (3) Build-in manufacturers’ responsibility

    • Mandatory recyclability: The new policy also needs to align with the mandate for the manufacturers to meet targets for the recyclability of material. Make this mandatory as part of the scrappage policy.

    (4) Implementing AIS 129 standard

    • It is encouraging that the Automotive Industrial Standard-129 (AIS 129) on reuse, recycling and material recovery from vehicles were framed in 2015.
    • This requires 80-85 per cent of the material used in vehicle manufacturing by mass to be recoverable/recyclable/reusable at the end of life.

    Way forward

    • Safe disposal of scrappage: This first-ever formal scrappage policy in India is urgently needed to help build infrastructure for safe disposal and material recovery to minimise environmental hazards.
    • Proper incentivization: It is necessary to leverage this targeted fleet renewal with well-designed central support for a post-pandemic green deal.

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  • What ails the Ken-Betwa River Link Project?

    ken-betwa

    The Steering Committee of the Ken-Betwa Link Project (KBLP) held its third meeting in New Delhi.

    What is the Ken Betwa Link Project?

    • The Ken-Betwa Link Project is the first project under the National Perspective Plan for the interlinking of rivers.
    • Under this project, water from the Ken River will be transferred to the Betwa river.
    • Both these rivers are tributaries of the river Yamuna.

    The Project has two phases:

    • Under Phase-I, one of the components — Daudhan dam complex and its appurtenances like Low Level Tunnel, High Level Tunnel, Ken-Betwa link canal and Power houses — will be completed.
    • While in the Phase-II, three components — Lower Orr dam, Bina complex project and Kotha barrage — will be constructed.

    Utility of the Project

    • Irrigation: The project is slated to irrigate 10.62 lakh hectares annually, provide drinking water supply to 62 lakh people and generate 103 MW of hydropower and 27 MW of solar power.
    • Water supply: The project will be of immense benefit to the water-starved Bundelkhand region, spread across Madhya Pradesh and Uttar Pradesh.
    • Agricultural boost: The project is expected to boost socio-economic prosperity in the backward Bundelkhand region on account of increased agricultural activities and employment generation.
    • Addressing Rural Distress: It would also help in arresting distress migration from this region.

    Ecological issues with the project

    • The government’s plan is based on a ‘surplus and deficit’ model that have little basis in science.
    • There may not even be enough water in the Ken, a non-perennial river, to meet the projected needs of the Betwa – forget the needs of the Bundelkhand region.
    • UP and MP could not agree on how water would be shared, particularly in the non-monsoonal months.
    • The project plans to create a high reservoir-dam on the Ken River in the Panna National Park and Tiger Reserve for the KBLP.
    • Downstream of the national park lies the Ken Gharial Sanctuary, created to protect the critically endangered Gangetic gharial (Gavialis gangeticus).

    What are the legal problems?

    • Approval by the Standing Committee of the National Board for Wildlife to the Ken-Betwa link Project has not been proved.
    • This is necessary for the improvement and better management of the wildlife therein as provided in Section 35(6) of the Wildlife (Protection) Act, 1972.

    Issues with the projects

    • Migration: It will lead to massive displacement of people
    • Topography change: Since the Ganga basin topography is flat, building dams would not substantially add to river flows.
    • Inundation: The transfer of such enormous amounts of water will inundate forests and land for reservoirs.
    • Seismic hazards: The weight of billions of liters of water can have seismic implications in the Himalayan region.
    • Financial expense: River inter-linking is an expensive business from building the link canals to the monitoring and maintenance of infrastructure.
    • Political will: Implementation of the project not only needs a huge financial capital but also political support both is scarce commodities as of now.
    • Consensus building for land acquisition: Another important issue is building consensus among states and Land acquisition.
    • Ecological feasibility: Once the project is implemented it would lead to large-scale displacement of people and animals.

    Criticisms of such projects

    • Bad Science: Such projects are built on bad science and an outdated understanding of water systems and water management.
    • Human determinism: Such projects go in contravention with natural process thereby generating more scope for threat than any opportunity.

    Way forward

    • Due diligence: Expert scrutiny during the project-approval stage are cornerstones of sound environmental governance.
    • Independent hydrological study: of these rivers is necessary.

    Conclusion

    • No developmental project should destroy the ecology of remnant fragile ecosystems and an important tiger habitat in the country.
    • Destructive impact of the proposed dam on the flow of water into and outside of this sanctuary should be immediately clear, as also its violation of the requirement under the Act for a sanctuary

     

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  • Green Comet appears close to Earth after 50,000 years

    comet

    The rare green comet that last came to Earth about 50,000 years ago has returned to the skies of Earth. C/2022 E3 (ZTF) can be seen with the naked eye if the conditions in the sky are just right.

    What are Comets?

    • Comets are frozen rocky or gas-filled objects that are remnants of the formation of the solar system.
    • Due to their composition, characteristics and the path they move in, they tend to leave a light “behind them”.
    • Here, the comet itself is green (called the head of the comet) and emits a whitish light behind it (often called the tail of the comet).
    • Just like other bodies in space, comets also have orbits.
    • They are sometimes pulled in close to the sun because of the sun’s gravity acting on them.
    • As they orbit near the Sun, they heat up and spew gases and dust into a glowing head that can be larger than a planet.
    • The remains of dust following this burning up, from a distance, look like a trail of light to humans on Earth.

    What is Green Comet C/2022 E3 (ZTF)?

    • Comet C/2022 E3 (ZTF) was first discovered in March last year by the wide-field survey camera at the Zwicky Transient Facility when it was already inside the orbit of Jupiter.
    • While it was initially believed to be an asteroid, it began developing a tail as the Sun’s influence began vapourising the ice.
    • At the time of its discovery, it was shining with a magnitude of 17.3.

    Why is it green in colour?

    • Comets have often been seen giving out blue or whitish light, or even green.
    • In this case, the green glow “is thought to arise from the presence of diatomic carbon – pairs of carbon atoms that are bound together – in the head of the comet.
    • The molecule emits green light when excited by the ultraviolet rays in solar radiation.

    When and where can the green comet be seen?

    • Observers in the Northern Hemisphere will find the comet in the morning sky, as it moves swiftly toward the northwest during January.
    • It’ll become visible in the Southern Hemisphere in early February.
    • In Indian skies, when looking in the northwest direction, one might spot it 16° above the horizon in the Bootes constellation.
    • But with lights from buildings and streetlights on, it can be difficult to make it out without equipment.

    Is the green comet rare?      

    • It last came in the skies above Earth during the Upper Paleolithic period, a time when Neanderthals roamed the planet and early homo sapiens had just come around.
    • Coming under the category of long-period comets, which take more than 200 years to orbit the Sun, the green comet is not easily spotted.
    • With a highly elliptical orbit, the comet will head back to the Oort cloud and make its next appearance roughly 50,000 years later.
    • But given their orbits, it’s not unique for comets to reappear close to Earth only after many, many years.

     

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  • Norovirus Cases detected in Kerala

    norovirus

    The Kerala Health Department confirmed two cases of the gastrointestinal infection norovirus in class 1 students in Ernakulam district.

    What is Norovirus?

    • Norovirus is an important cause of acute non-bacterial gastroenteritis in children as well as adults worldwide.
    • It leads to diarrhoea, vomiting, nausea, and abdominal pain. Being a diarrhoeal disease, it can lead to dehydration, so drinking plenty of fluids is recommended.
    • The virus was first discovered in connection with an outbreak of acute diarrhoeal disease in Norwalk, Ohio, in 1968 and was called the Norwalk Virus.
    • Later, several stomach flu viruses closely linked to the Norwalk virus were found and together, these are now called Noroviruses.
    • Many stomach flu outbreaks typically in cruise ships have been traced to NoV.

    How deadly is this?

    • Norovirus is not new; it has been circulating among humans for over 50 years and is thought to be one of the primary causes of gastroenteritis.
    • The virus is estimated to kill 200,000 persons globally every year, with most deaths occurring among those below the age of five years and those over the age of 65 years.
    • The virus is capable of surviving low temperatures, and outbreaks tend to be more common during the winter and in colder countries — that is why it is sometimes referred to as “winter vomiting disease”.

    What is the incidence of infection in India?

    • Cases of norovirus are not as common in India as in many other places — at the same time.
    • The infection has been reported in previous years as well, mainly from Southern India, and especially from Kerala.
    • A 2021 study from Hyderabad reported that norovirus was detected in 10.3% samples of children who came in with acute gastroenteritis.

    Can norovirus infection cause a large-scale outbreak?

    • Even though more cases of norovirus are being detected, experts say that this is unlikely to lead to a large-scale outbreak.
    • There is no epidemiological study to co-relate of these cases.

     

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  • Species in news: Olive Ridley Turtles

    olive

    Hundreds of vulnerable Olive Ridley Turtles (Lepidochelys olivacea) have washed ashore along the coastline between Kakinada and Antarvedi in the Godavari region during the ongoing annual breeding season on the east coast.

    Why in news?

    • The wastewater from the aqua ponds is also being released into the sea.
    • This is suspected to be one of the reasons for the mortality of turtles

    Olive Ridley Turtles

    • The Olive Ridley Sea Turtle (Lepidochelys olivacea), also known as the Pacific ridley sea turtle, is a medium-sized species of sea turtle found in warm and tropical waters, primarily in the Pacific and Indian Oceans.
    • In the Indian Ocean, the majority of olive ridleys nest in two or three large groups at Rushikulya rookery near Gahirmatha in Odisha.
    • The coast of Odisha in India is the largest mass nesting site for the olive ridley, followed by the coasts of Mexico and Costa Rica.
    • The species is listed as Vulnerable in the IUCN Red List, Appendix 1 in CITES, and Schedule 1 in Wildlife Protection Act, 1972.

    Special feature: Mass nesting

    • They are best known for their behavior of synchronized nesting in mass numbers, termed Arribadas.
    • Interestingly, females return to the very same beach from where they first hatched, to lay their eggs.
    • They lay their eggs in conical nests about one and a half feet deep which they laboriously dig with their hind flippers.
    • They hatch in 45 to 60 days, depending on the temperature of the sand and atmosphere during the incubation period.

     

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  • Uniform Civil Code, Identity politics and the gender equality

    Civil

    Context

    • Once again there is a clamour to replace diverse personal laws with a Uniform Civil Code (UCC), applicable to all Indians, irrespective of religion, gender or caste. Some states (for example, Uttarakhand) are already drafting one.

    What is a Uniform Civil Code?

    • A Uniform Civil Code is one that would provide for one law for the entire country, applicable to all religious communities in their personal matters such as marriage, divorce, inheritance, adoption, etc.
    • Article 44, one of the directive principles of the Constitution lays down that the state shall endeavor to secure a Uniform Civil Code for the citizens throughout the territory of India.
    • These, as defined in Article 37, are not justiciable (not enforceable by any court) but the principles laid down therein are fundamental in governance.

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    Inheritance laws at present

    • Hindus are governed by the 2005 Hindu Succession Amendment Act (HSAA);
    • Muslims by the Muslim Personal Law (Shariat) Application Act, 1937;
    • Christians and Parsis by the Indian Succession Act 1925 (amended by both communities subsequently), and
    • Tribal groups are still subject to custom.

    Civil

    What makes unification difficult?

    • Distinction in Hindu inheritance laws: Hindu inheritance distinguishes between separate property and coparcenary joint family property, giving coparceners rights by birth. No other personal law makes this distinction.
    • Within Hindu law itself, states diverge: Kerala abolished joint family property altogether in 1976, but other states retained it, and matrilineal Hindus (as in Meghalaya and Kerala) have different inheritance rules from patrilineal Hindus. Even among the latter, Hindus historically governed by Dayabhagha (West Bengal and Assam) differ from those in the rest of India who were governed historically by Mitakshara.
    • unrestricted right to will: The right to will is unrestricted among Hindus, Christians and Parsis, but Muslim law restricts wills to one-third of the property; and Sunni and Shia Muslims differ on who can get such property and with whose consent.
    • Complex gender equal laws specifically in Muslims: for while the inheritance laws of Hindus, Christians and Parsis are largely gender equal today, under Muslim personal law, based on the Shariat, women’s shares are less than men’s, generically. Being embedded in the Koran, this complex structure of rules leaves little scope for reform towards gender equality.
    • Land is treated differently from other property: The HSAA 2005, for instance, deleted the clause which discriminated against women in agricultural land, but the 1937 Shariat Act governing Muslims continues to exclude agricultural land from its purview, leaving a major source of gender inequality intact. Although Tamil Nadu, Andhra Pradesh and Kerala later amended the Shariat Act to include agricultural land, in many other states, landed property is still subject to tenurial laws which exclude Muslim women from inheriting it, contrary to their rights under the Shariat.
    • Social justifications on who deserves to inherit differ: Hindus emphasise sapinda (“shared body particles” in Mitakshara and religious efficacy in Dayabhaga); other communities privilege blood or marital ties; and yet others favour proximity of children’s post-marital residence to provide parents care in old age.

    Civil

    Main concern: Deflection from the original aim of Gender equality

    • Today, the UCC debate has become enmeshed with identity politics, deflecting it from the original aim of gender equality. And the mingling of legal reform with religious identity has sharpened political divisiveness.

    Answer probably lies in: The discussions among women’s groups in the 1990s

    1. Encourage each religious community to pursue its own reform for gender equality.
    2. Constitute a package of gender-just laws which would coexist with personal laws, and a person could choose one or the other upon reaching adulthood.
    3. Constitute a gender-equal civil code applicable to all citizens without option, based on the constitutional promise of gender equality, rather than on religious decree or custom.

    Conclusion

    • For a start, rather than one code covering inheritance, marriage, etc., we should discuss each separately. On inheritance, which is the most complex, a secular law based on constitutional rights will clearly go the farthest towards gender equality. Whether this is possible in today’s divisive political environment remains an open question. But at least we should restart the conversation.

    Mains question

    Q. What is Uniform civil code? Highlight some of the major points which makes the unification difficult.

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  • 24th Jan 2023 | Prelims Daily with Previous Year Questions

    24th Jan 2023 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1223]

    [WpProQuiz_toplist 1223]

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  • Insolvency and Bankruptcy Code 2016 (IBC)

    Insolvency

    Context

    • The introduction of the Insolvency and Bankruptcy Code (IBC) in 2016 brought about a structural change in the resolution architecture in the country. However, despite its promise, the IBC, in its functioning, has fallen short of expectations. Last week, the Ministry of Corporate Affairs invited comments on a fresh set of changes it is considering to bring about in the Code. This is a welcome step.

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    What is Insolvency?

    • Simply speaking, insolvency is a financial state of being one that is reached when you are unable to pay off your debts on time.
    • Insolvency is essentially the state of being that prompts one to file for bankruptcy. An entity a person, family, or company becomes insolvent when it cannot pay its lenders back on time.

    Insolvency

    What is Bankruptcy?

    • Bankruptcy, on the other hand, is a legal process that serves the purpose of resolving the issue of insolvency.
    • Bankruptcy is a legal declaration of one’s inability to pay off debts. When one files for bankruptcy, one obliges to pay off what is owed with help from the government.

    What is the Insolvency and Bankruptcy Code 2016 (IBC)?

    • The IBC was enacted in 2016 to simplify insolvency and bankruptcy proceedings, safeguard interests of all stakeholders (the firm, employees, debtors and especially creditors), and resolve non-performing assets.
    • From a ‘debtor in possession’ regime, it was a shift to a ‘creditor in control’ one.
    • IBC provides for a time-bound process for resolving insolvencies.
    • The Insolvency and Bankruptcy Board of India (IBBI) is the regulator implementing the code and overseeing the functioning of stakeholders.

    Why the IBC introduced?

    • Increasing Non-Performing Assets: In 2016, at a time when India’s Non-Performing Assets and debt defaults were piling up, and older loan recovery mechanisms were performing badly, the IBC was introduced to overhaul the corporate distress resolution regime in India.
    • Time bound mechanism: To consolidate previously available laws to create a time bound mechanism with a creditor­ in­ control model as opposed to the debtor ­in ­possession system.
    • Two positive outcomes: When insolvency is triggered under the IBC, there can be just two outcomes: resolution or liquidation. liquidation means the process of winding up a corporation or incorporated entity

    Insolvency

    What are the shortcomings in the code’s functioning?

    • Timelines are not followed: Realizations of creditors have been lower than expectations, and the strict timelines prescribed in the Code for resolving cases have not been adhered to.
    • Less realizable value: According to the most recent data, the total realisable value in cases resolved till September 2022 stood at only 30.8 per cent of the admitted claims.
    • Average time is rising: The data also shows that 64 per cent of the ongoing cases have crossed 270 days. In fact, as per reports, the average time taken for cases to be resolved has risen, driven in part by more time being spent on associated litigation.

    Insolvency

    Proposals to address the shortcomings

    • Removing ambiguity and bringing the predictability: The changes aim to reduce the time for admitting cases and streamline the process by pushing for greater reliance on data with Information Utilities. Considering the delays in admitting cases, and the implications of recent judicial interventions, this proposal seeks to remove ambiguity, and bring about predictability in the process.
    • Extending the pre-packed resolution to other firms: It has also been proposed that the pre-packaged insolvency resolution process that was introduced for micro, small and medium enterprises now be extended to other firms as well. While such a proposal should be appealing, so far very few cases have been admitted under this.
    • A clear distinction between the real estate projects: A distinction is now being made between a particular real estate project and the larger corporate entity. The government’s rationale for doing so is that this could allow the corporate entity to continue on other projects, while the stressed project can be tackled separately.
    • Changes to the manner in which proceeds will be distributed: Creditors will receive proceeds up to the liquidation value in line with the priority as prescribed under section 53 of the Code, and any surplus over such liquidation value will be rateably distributed between all creditors in the ratio of their unsatisfied claims.

    Conclusion

    • Attempts to improve IBC’s functioning are welcome. But some of the proposals need more careful examination. Changes to the Code should, after all, be driven by the objective of improving its functioning, and outcomes. This should be done keeping in mind the incentive structures of all stakeholders.

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  • Menstrual leave and the question of gender equality

    Menstrual

    Context

    • On January 19, Kerala Chief Minister Pinarayi Vijayan announced on social media that the state government will grant menstrual leave for female students in all state universities under the Department of Higher Education.

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    Background

    • The announcement came shortly after the Cochin University of Science and Technology (CUSAT) decided to provide menstrual leave to all its female students after a representation made by the students’ union.
    • Vijayan has described the government’s decision as part of its commitment to realising a gender-just society. The government’s claim should inaugurate a wider conversation.

    Menstrual

    What is Menstruation?

    • Menstruation, or period, is normal vaginal bleeding that occurs as part of a woman’s monthly cycle.
    • It is a normal process for girls and women who have reached puberty.
    • Every month, girl or women’s body prepares for pregnancy.
    • If no pregnancy occurs, body gets rid of the lining in the uterus.
    • The menstrual blood is partly blood and partly tissue from inside the uterus.
    • The length of a period can be different for each person, but usually lasts for 3-7 days.

    What is the idea behind the Menstrual leave?

    • Paid leaves: Menstrual leave is a Policy of allowing women to take paid leave from work or school during their menstrual period.
    • Allows to rest: This leave is specifically for the days when a woman is menstruating and is intended to allow her to rest and manage symptoms such as cramps and fatigue, which can be particularly severe for some women.
    • Reducing the stigma: The idea behind menstrual leave is to help reduce the stigma associated with menstruation and acknowledge that it is a normal and natural bodily process.

    Did you know?

    • The menstrual cycle can be affected by external factors such as stress, changes in temperature and altitude, and even exposure to certain chemicals and toxins.
    • This can cause changes in the length of the cycle, the intensity of bleeding, and the severity of symptoms.
    • There is also a small percentage of women who experience menorrhagia, which is an excessive bleeding during menstruation. This can be caused by hormonal imbalances, fibroids, endometriosis, and other underlying medical conditions.

    Menstrual

    Debate over the mandatory Period leave

    Advantages:

    • Acknowledging the pain and discomfort: Making period leave available to students and, going forward, to women in the workforce, perhaps would be an important step towards acknowledging and addressing the often-debilitating pain and discomfort that so many are often forced to work through.
    • Will help create workplaces more inclusive: Instituting period leave would help create workplaces and classrooms that are more inclusive and more accommodating.
    • Reducing the stigma associated with menstruation: By making menstrual leave official leaves can help to reduce the stigma associated with menstruation and acknowledge that it is a normal and natural bodily process.
    • Increase productivity: By allowing women to take time off during their menstrual period, they can return to work or school more refreshed and better able to focus on their responsibilities, which can lead to increased productivity.

    Menstuation

    Concerns:

    • Context within which such policy decisions are taken matters: In a traditional society like India, where menstruation remains a taboo topic, it is possible that a special period leave could become another excuse for discrimination.
    • The examples of similarly traditional societies like South Korea and Japan are not encouraging: Both countries have laws granting period leave, but recent surveys showed a decline in the number of women availing of it, citing the social stigma against menstruation.
    • Medicalising normal biological process: There is also the risk of medicalising a normal biological process, which could further entrench existing biases against women.
    • Mandatory leaves may hamper women hiring: There is a possibility that the perceived financial and productivity cost of mandatory period leaves could make employers even more reluctant to hire women.
    • Reinforcing gender stereotypes: Implementing menstrual leave could reinforce the stereotype that women are weaker and less capable than men, which could have negative consequences for women in the long term.

    Conclusion

    • The ongoing conversation around menstrual leave and menstrual health is crucial and welcoming. It is also encouraging to see the governments are recognizing the importance of this issue. However, implementing menstrual leave as a legal requirement comes with its own set of challenges. It’s important for governments to navigate these challenges while ensuring that the ultimate goal of gender justice and equality is met.

  • [Burning Issue] World Economic Forum (WEF) Davos Summit 2023

    wef

    Context

    • Recently, 53rd edition of annual summit of World Economic Forum (WEF) was held in Davos, Switzerland.
    • This edition of the Burning Issue will talk about the major outcomes of the summit.

    About the Annual Davos Summit

    • The theme this year was ‘Cooperation in a Fragmented World’.
    • Davos attracts global business executives and policymakers. Usually attending will be the sitting U.S. president, top EU and UN leaders, business leaders and entrepreneurs, academics, heads of NGOs and charities, the media, activists and even some celebrities.
    • The conference includes hundreds of discussions, keynote speeches and panels, and all-important networking sessions, usually behind closed doors in five-star hotels.
    • CEOs and investors seize the opportunity for face-to-face deal-makings.

    About WEF

    • Headquartered in Geneva, Switzerland, WEF is an international not-for-profit organization, focused on bringing the public and private sectors together to address the global political, social, and economic issues.
    • It was founded in 1971 by Swiss-German economist and Professor Klaus Schwab in a bid to promote the global cooperation on these most pressing problems.
    • The first meeting of WEF was held more than five decades ago in Davos, which has been the home of the annual gathering almost ever since, also becoming the shorthand for the event.

    Klaus Schwab and his concept of “Stakeholder Capitalism”

    • Klaus Schwab has pioneered the concept of “Stakeholder Capitalism.” According to Schwab, “it is a form of capitalism in which companies do not only optimize short-term profits for shareholders, but seek long term value creation, by taking into account the needs of all their stakeholders, and society at large.”
    • In his various books and papers on the topic, he says this form of economic organisation keeps society and the planet front and centre, moving beyond the narrow interests of a corporation.
    wef

    Key outcomes of the summit

    • On the economy: Most business leaders were upbeat about the economy, with US and the European Union (EU) seemingly beyond the risk of a recession now. China ending its zero Covid curbs and opening shop again added to the positive outlook. However, central banks of the major economies cautioned that concerns still remained, and said they would keep interest rates high to ensure inflation is under check.
    • On Ukraine: Ukraine kept up its demand for more military aid to fight its war against Russia, and more financial aid to rebuild after the war, saying the reconstruction fund commitments should start coming in now and not after the war ends. Odile Françoise Renaud-Basso, President of the European Bank for Reconstruction and Development (EBRD), said “The more we do now, the less we will have to do in reconstruction,”
    • On Climate: Everyone agreed upon the need for green energy and the need for more money to flight climate change. According to the WEF’s website, “The World Economic Forum, supported by more than 45 partners launched the Giving to Amplify Earth Action (GAEA), a global initiative to fund and grow new and existing public, private and philanthropic partnerships (PPPPs) to help unlock the $3 trillion of financing needed each year to reach net zero, reverse nature loss and restore biodiversity by 2050.”
    • On emerging technologies: Davos juxtaposed the industry’s potential and peril. Just as Microsoft Corp’s CEO and other Silicon Valley executives touted artificial intelligence such as ChatGPT to transform their businesses, they announced layoffs of tens of thousands of employees globally. Scrutiny of once high-flying cloud spending by businesses was at the forefront.
    • Financial services: Global financial institutions are grappling with how to right-size for a slowdown, while dealing with a host of other headwinds. With the threat of inflation still hanging over central banks, financiers are facing demands from regulators for higher capital levels to prepare for a downturn, making some businesses unprofitable.

    India specific outcomes

    • 36 years of the Forum’s collaboration with India: A high-level delegation from the Indian side coupled with senior State Government representation will be present at WEF 2023 to strengthen India’s position as an important stakeholder shaping the global narrative. This year also marks 36 years of the Forum’s collaboration with India.
    • Support in multiple fields: Over the course of 5 days, Invest India organized several roundtables, panel discussions and fireside chats to deliberate on policy action and investment support in renewable energy, sustainability, infrastructure, healthcare and medical devices, startups, trade and logistics, technology, institutional investments, and so on.
    • Promoting India as an investment destination: In celebration of India’s ‘Azadi ka Amrit Mahotsav’, 75 years of Independence and the assumption of our G20 Presidency, DPIIT strengthened India’s presence at this year’s WEF in Davos for all global investors looking to make a home in India, one of the world’s most liberal investment destinations. The objective is to showcase a consolidated India presence with the Centre & States while projecting India as a strong, resilient economy, acting as a problem solver at the global stage.
    • India@100 report launched: A report titled, ‘India@100: Realising the potential of a USD 26 trillion economy’, was launched during the summit. The report stated that India’s economy will reach USD 26 trillion by 2047, the 100th year of the country’s independence.
    • India to remain resilient amid global slowdown: The end of the summit saw India emerging as a key pillar in the world order with WEF Founder and Executive Chairman Klaus Schwab describing the country as a bright spot in a fragile world. On Day 2 of the meeting, conversations revealed that India is expected to remain resilient despite the global slowdown impacting the emerging markets.
    • India’s high visibility: India seemed to be the most visible among its regional Asian peers, with major tech companies staging booths in Davos. Indian business leaders were seen at the forefront of debates over technology and supply chain issues.
    • Projects launched: The Press Trust of India (PTI) reported that more than 50 “high-impact initiatives” was launched at the event. Maharashtra Institution for Transformation (MITRA) signed a partnership with the forum on urban transformation to give the state government “strategic and technical direction”, PTI reported, while a thematic centre on healthcare and life sciences is to be set up in Telangana. The Coalition for Epidemic Preparedness and Innovations (CEPI) aims to develop new vaccines for future pandemics.

    Conclusion

    • Remaining true to the World Economic Forum’s spirit of multi stakeholder cooperation, the annual 2023 meet brings together top decision-makers from government, business, and civil society to address major global issues and priorities for the year ahead.
    • The jarring spectacle of the Davos event – where the uber-rich and powerful fly in on private jets to talk about poverty alleviation and climate action – came in for criticism yet again. However, others pointed out that despite its flaws, the conference is an opportunity for many decision-makers to meet and interact with each other.
    • As the Economist editor-in-chief Zanny Minton Beddoes put it, while the talks at Davos can be described as “highly-caffeinated speed dating”, more conversation and communication is better than less contact and less communication.

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  • Lay-off Indian techies scrambling for options to stay in US

    Thousands of Indian IT professionals in the US, who have lost their jobs due to the series of recent layoffs at companies like Google, Microsoft and Amazon, are now struggling to find new employment within the stipulated period under their work visas.

    Recent layoff is US

    • Nearly 200,000 IT workers have been laid off since November last year, including some record numbers in companies like Google, Microsoft, Facebook and Amazon.
    • As per some industry insiders, between 30 to 40 per cent of them are Indian IT professionals, a significant number of whom are on H-1B and L1 visas.

    What one means by Lay-Off?

    • A layoff is the temporary or permanent termination of employment by an employer for reasons unrelated to the employee’s performance.
    • Employees may be laid off when companies aim to cut costs, due to a decline in demand for their products or services, seasonal closure, or during an economic downturn.
    • When laid off, employees lose all wages and company benefits but qualify for unemployment insurance or compensation (typically in USA).

    Why do companies resort to layoffs?

    • Cost reduction: One of the main reasons why workers get laid off is because the company decides to cut back on costs in some way. The need can arise from the fact that the company is not making enough profits to cover its expenses or because it needs substantial extra cash to address paying off debt.
    • Staffing redundancies: Layoffs also occur when a company needs to eliminate some positions due to over-staffing, outsourcing, or a modification to the roles.  A company may want to eliminate redundant positions in order to make its operations more efficient.
    • Relocation: Moving the company’s operations from one area to another can also bring about the need to let go of some workers. Shutting down the initial location will not only affect the workers who get laid off but the surrounding community’s economy as well.
    • Merger or buyout: If a business is bought out or decides to merge with another, the change might lead to a change in the company’s leadership and corporate direction. If there’s new management, the chances are that they’ll come up with new goals and plans, and this can lead to layoffs.

    Immediate triggers of Lay-Off

    • Pandemic Boom: During the pandemic, there was a surge in demand as people were in lockdown and they were spending a lot of time on the internet. The overall consumption saw an upsurge following which the companies went to increase their output to meet the market requirements.
    • Over hiring during pandemic: In order to meet the demands, many tech companies went on a hiring spree anticipating the boom to continue even after the pandemic. However, as the curbs were eased and people started stepping out of their homes, consumption fell, resulting in heavy losses to these big tech companies. Some of these resources were hired at a higher cost because of the sudden upsurge in demand.
    • Fear of recession: As the demand is coming back to pre-Covid levels and seeing the debt bubble almost about to burst and fearing recession, these companies are cutting down their costs by closing down low-performing projects and laying off the excess and high-cost resources they hired to accelerate growth.
    • Russia-Ukraine War: The war has also contributed to these layoffs as it has made the market more volatile. This is clearly visible from stock market volatility.
    • Inflation: Rising inflation has also impacted several world economies severely leading to a crisis in the job market as well. The world is currently hitting a reset button to overcome all these ups and downs.

    Various US Visa Programs

    1) H-1B visa

    • What is it: The H-1B visa category covers individuals who “work in a speciality occupation, engage in cooperative research and development projects administered by the US Department of Defense or are fashion models that have national or international acclaim and recognition.”
    • Who’s covered: The H-1B is most well known as a visa for skilled tech workers, but other industries, like health care and the media, also use these visas.

    2) H-2B visa

    • What it is: According to USCIS, the H-2B program allows US employers or agents “to bring foreign nationals to the United States to fill temporary non-agricultural jobs.”
    • Who’s covered: They generally apply to seasonal workers in industries like landscaping, forestry, hospitality and construction.

    3) J-1 visa

    • What it is: The J-1 visa is an exchange visitor visa for individuals approved to participate in work-and-study-based exchange visitor programs in the United States.

      Who’s covered:       The impacted people include interns, trainees, teachers, camp counsellors, au pairs and participants in summer work travel programs.

    4) L-1 visa

    • What it is: The L1 Visa is reserved for managerial or executive professionals transferring to the US from within the same company, or a subsidiary of it. The L1 Visa can also be used for a foreign company opening up US operations.
    • Who’s covered: Within the L1 Visa, there are two subsidiary types of visas
    1. L1A visa for managers and executives.
    2. L1B visa for those with specialized knowledge.

    Why these matters?

    • A significantly large number of Indian IT professionals, who are on non-immigrant work visas like H-1B are L1.
    • They are now scrambling for options to stay in the US to find a new job in the stipulated few months’ time that they get under these foreign work visas after losing their jobs and change their visa status as well.

    Impacts of Lay-offs

    • Cut-throat market competition: Layoffs are a painful but expected fact of life in a market economy exposed to competition and trade.
    • Immense loss to the workers: Layoffs can be damaging psychologically as well as financially to the affected workers as well as their families, communities, colleagues, and other businesses.
    • Decreased customer loyalty: When a company lays off its employees it sends out a message to customers that it is undergoing some sort of crisis.
    • Emotional Distress: The person who is laid off suffers the most distress, but remaining employees suffer emotionally as well. The productivity level of employees who work in fear is likely to go down.

    Lessons for India

    • Indian startups grew at a notoriously faster pace than its neighboring regions.
    • But the layoffs are a sobering reminder that the bigger the startups became, the harder they fell.
    • Just because a startup had touched a sky-high valuation did not immediately mean its employees’ jobs were insured.

    Way forward

    • Voluntary retirement program: This enables individuals to transition to retirement smoothly.
    • Cut back on the extras: If a company is laying off workers to reduce costs, it can look for other avenues of saving money. For example, the company managers can freeze additional hiring, reduce or remove bonuses.
    • Consider a virtual office: Another way to cut down on costs is to keep only the most important staff onsite and send the rest of the workers home to work remotely.
    • Offer more unpaid time off: A company owner can also save money by offering more unpaid time off rather than eliminating workers’ positions.

     

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  • Bimodal Nuclear Propulsion can send missions to Mars in 45 days

    nuclear

    NASA is planning to send mission to Mars in 45 days using the Bimodal Nuclear Propulsion.

    Bimodal Nuclear Propulsion: What is it?

    • NASA relaunched its program to develop bimodal nuclear propulsion a few years ago. Bimodal nuclear propulsion is a two-part system that includes an NTP and NEP element.
    • This system is expected to enable transits to Mars in 100 days.
    • In 2023, the US space agency started a new program named NASA Innovative Advanced Concepts (NIAC) and has selected a nuclear concept for Phase I development.
    • This new bimodal nuclear propulsion system will use a “wave rotor topping cycle” that may reduce transit times to Mars to 45 days.

    How will nuclear propulsion work?

    • Nuclear propulsion is based on two concepts Nuclear-Thermal Propulsion (NTP) and Nuclear-Electric Propulsion (NEP).
    • The NTP system includes a nuclear reactor that will heat liquid hydrogen (LH2) propellant and turn it into ionised hydrogen gas (plasma) that will then be channelled through nozzles to generate thrust.
    • NEP depends on a nuclear reactor to provide electricity to a Hall-Effect thruster (ion engine).
    • It will generate an electromagnetic field that will ionise and accelerate an inert gas (for example xenon) to create thrust.

    Benefits offered

    • Nuclear propulsions have major advantages over conventional chemical propulsion.
    • These benefits include fuel efficiency, a higher specific impulse rating and unlimited energy density (virtually).
    • NEP’s advantage over NTP and conventional chemical propulsion systems is that it offers more than 10,000 seconds of Specific impulse (ISP).
    • ISP is a measure of how efficiently a reaction mass engine (a rocket using propellant or a jet engine using fuel) creates thrust.

    Benefits for manned missions

    • A crewed mission to Mars based on conventional propulsion technology may last up to three years.
    • However, A transit time of 45 days will reduce the overall mission time to months instead of years.
    • This will drastically reduce the major risks associated with missions to Mars which include – radiation exposure, the time spent in microgravity and related health concerns.

    Limitations of these nuclear propulsion systems

    • This means NEP systems can maintain thrust for close to three hours.
    • However, the thrust level is lower compared to conventional rockets and NTP systems.
    • In outer space, the thermal energy conversion rate is just 30-40% under ideal circumstances.

     

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  • INS Vagir commissioned into the Indian Navy

    ins vagir

    The fifth Scorpene class conventional submarine was commissioned into the Indian Navy as INS Vagir.

    INS Vagir

    • The latest submarine gets its name from the erstwhile Vagir, a submarine that served the Navy between 1973 and 2001 and undertook numerous operational missions.
    • The construction of the new Vagir began in 2009 and it took its maiden sea sortie in February last year.
    • Also known as Sand Shark, the submarine was delivered to the Indian Navy in December 2022.

    Class: Kalvari

    • In maritime parlance, a class of ships is a group of vessels which have the same make, purpose and displacement.
    • Vagir is a Kalvari-class submarine, which includes other vessels, such as the INS Kalvari, INS Khanderi, INS Karanj, INS Vela and INS Vagsheer.
    • Of these, Kalvari and Khanderi were commissioned in 2017 and 2019, and Vela and Karanj were inducted in 2021.
    • Vagir has now been commissioned and Vagsheer was launched in 2022 and is expected to be inducted next year.
    • The submarines in the current Kalvari-class take their names from erstwhile decommissioned classes of submarines named Kalvari, which included Kalvari, Khanderi, Karanj and Vela classes — comprising Vela, Vagir, Vagshir.

    Capabilities and technical details of INS Vagir

    • The Kalavari class of submarines have an estimated endurance of approximately 50 days.
    • They also have the capability of operating in a wide range of Naval combat including anti-warship and anti-submarine operations, intelligence gathering and surveillance and naval mine laying.
    • These submarines are around 220 feet long and have a height of 40 feet. It can reach the highest speeds of 11 knots (20 km/h) when surfaced and 20 knots (37 km/h) when submerged.
    • The modern variants of the Scorpene class of submarines have what is called Air Independent Propulsion (AIP) which enables non-nuclear submarines to operate for a long time without access to surface oxygen.

    Strategic importance

    • Currently, India has less number of submarines than what is required with some more of those from both types being at various stages of construction.
    • India operates one submarine in the nuclear-powered class of Chakra and two other nuclear-powered vessels in Arihant.
    • There are in addition to submarines belonging to three classes of Diesel Electric category — Kalvari, Shishumar and Sindhughosh, some of which are ageing.
    • The nuclear-powered and diesel-electric submarines have their designated roles in the Carrier Battle Groups, which are formations of ships and submarines with Aircraft Carriers in the lead role.
    • As per the basic principles of submarine deployment and minimum requirement for India to create a strategic deterrence, there is a specific number of submarines of both types that India needs to have in active service.

     

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  • RBI says no Foreign Investment cap on Sovereign Green Bonds

    green bond

    The sovereign green bonds issued by the Indian government will not have any restrictions on foreign investment, the Reserve Bank of India (RBI) said.

    What are Sovereign Green Bonds?

    • A bond is an instrument to raise debt.
    • Since 2007, a market for bonds specifically self-labeled or designated as ‘green’ has emerged.
    • This label differentiates a green bond from a regular bond, which signifies a commitment to exclusively use funds raised to finance or re-finance “green” projects, assets, or business activities.
    • When these bonds carry guarantees related to the repayment of principal and payment of interest by the sovereign or the government, they are called sovereign green bonds (SGrB).

    How are the projects for green bonds selected?

    • A project is classified “green” on the basis of four key principles. These include-
    1. Encouraging energy efficiency in resource utilisation
    2. Reducing carbon emissions and greenhouse gases
    3. Promoting climate resilience and
    4. Improving natural ecosystems and biodiversity, especially in accordance with SDG (Sustainable Development Goals).

    When is the first sovereign green bond likely to be issued? 

    • In her Budget speech early this year, Finance Minister announced that sovereign green bonds will be issued for mobilising resources for green infrastructure.
    • The proceeds will be deployed in public sector projects that help in reducing the carbon intensity of the economy.
    • These green bonds would be available in 5-year and 10-year tenure.

    How are they different from conventional government bonds?

    • Government bonds or government securities (G-Secs) are normally categorised into two — Treasury Bills and dated or long-term securities.
    • These bonds carry coupon rates and are tradable in the securities market.
    • SGrB is one form of dated security. It will have a tenor and interest rate.
    • Money raised through SGrB is part of overall government borrowing.

    Who are likely to be the buyers of these bonds? 

    • Both domestic and international investors are expected to be interested in SGrB.
    • However, one thinking is foreign investors may be slightly hesitant due to currency risk.

     

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  • PM named 21 Andaman Islands after Param Vir Chakra recipients

    param vir chakra

    Prime Minister named 21 largest unnamed islands of Andaman & Nicobar Islands after India’s 21 Param Vir Chakra awardees.

    Note: Earlier, Ross Island was renamed Netaji Subhash Chandra Bose Dweep by the Prime Minister during his visit to the Island in 2018. Neil Island and Havelock Island were also renamed Shaheed Dweep and Swaraj Dweep.

    Here’s the full list of 21 islands renamed after Param Vir Chakra awardees:

    1. Dhan Singh Island after Lieutenant Colonel (then Major) Dhan Singh Thapa
    2. Tarapore Island after Lt Col Ardeshir Burzorji Tarapore
    3. Karam Singh Island after Lance Naik (Hony. Captain) Karam Singh
    4. Bana Island after Naib Subedar Bana Singh
    5. Ekka Island after Lance Naik Albert Ekka
    6. Khetrapal Island after 2nd Lt Arun Khetrapal
    7. Pandey Island after Lt Manoj Kumar Pandey
    8. Hoshiar Island after Major Hoshiar Singh
    9. Shaitan Island after Major Shaitan Singh
    10. Jadunath Island after Nayak Jadunath Singh
    11. Yogender Island after Subedar Major (Hony. Captain) Yogendra Singh Yadav
    12. Hamid Island after Company Quartermaster Havildar (CQMH) Abdul Hamid
    13. Rane Island after 2nd Lt Rama Raghoba Rane
    14. Ramaswamy Island after Major Ramaswamy Parameswaran
    15. Batra Island after Captain Vikram Batra
    16. Joginder Island after Subedar Joginder Singh
    17. Salaria Island after Captain G S Salaria (then Major)
    18. Piru Island after Company Havildar Major Piru Singh
    19. Somnath Island after Major Somnath Sharma
    20. Sekhon Island after Flying Officer Nirmaljit Singh Sekhon
    21. Sanjay Island after Subedar Major (then Rifleman) Sanjay Kumar

    About Param Vir Chakra (PVC)

    • The PVC is India’s highest military decoration, awarded for displaying distinguished acts of valour during wartime.
    • Till now, the medal has been awarded 21 times, of which 14 were posthumous and 16 arose from actions in Indo-Pakistani conflicts.
    • Of the 21 awardees, 20 have been from the Indian Army, and one has been from the Indian Air Force.
    • Major Somnath Sharma of the Kumaon Regiment was the first recipient.
    • Others wartime gallantry awards are Mahavir Chakra, Vir Chakra; and peacetime gallantry awards include- Ashok Chakra, Kirti Chakra and Shaurya Chakra.

    History of gallantry awards in India

    • The history of present-day Indian gallantry awards can be traced back to the rule of the East India Company.
    • The first formal award was instituted by Lord William Bentinck in 1834 as the Order of Merit, later renamed the Indian Order of Merit in 1902.
    • During the First World War, the British awards system was adopted and continued through the Second World War.
    • Post-independence, new awards were instituted on 26 January 1950, with retroactive effect from 15 August 1947.
    • The PVC is equivalent to the Victoria Cross in the United Kingdom and the Medal of Honor in the United States.

     

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  • AI-Generated Art: Paradox of capturing humanity

    AI

    Context

    • Around the end of last year, social media spaces were trending with Lensa-generated images of online users. A subscription app, Lensa, makes graphic portraits, called “Magic Avatar” images, using selfies uploaded by its users. As AI takes a strong foothold over the realm of art, are we equipped with mechanisms to define what is right and what is wrong in this domain in the first place?

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    The case of Lensa app

    • A subscription app, Lensa, makes graphic portraits, called Magic Avatar images, using selfies uploaded by its users.
    • Celebrities worldwide stepped in to show how they looked so perfect in their avatars in a Lensa world.
    • However, a few days later, hundreds of women netizens worldwide started flagging issues with their avatars. They pointed out how their avatar images had their waists snatched and showed sultry poses.
    • Even after these women uploaded different pictures, Lensa generated hyper-sexualised, semi-pornographic images.

    How art is generated using Artificial Intelligence?

    • Uses algorithms based on textual prompts: AI art is any art form generated using Artificial Intelligence. It uses algorithms that learn a specific aesthetic based on textual prompts and, after that, go through vast amounts of data in the form of available images as the first step.
    • Algorithms generate new images: In the next step, the algorithm tries to generate new images that tally with the kind of aesthetics that it has learnt.
    • Role of artists with right keystrokes: The artist becomes more like a curator who inputs the right prompt to develop an aesthetically-fulfilling output. While artists use brush strokes in other digital platforms like Adobe Photoshop, in programmess like Dall-E and Midjourney, all it takes are keystrokes.
    • For example: The generation of an artwork like Starry Night in the digital era. While Van Gogh would have taken days of effort to conceptualise and get the correct strokes and paint, in the AI art era, it is just a matter of the right textual prompts.

    AI

    Can it truly capture the essence of humanity?

    • The impact of AI-generation on the masses’ experience of art: Art is one of the few pursuits that makes life meaningful. It remains to be seen if AI-generated art will alienate the experience of art from the masses.
    • AI takes away the satisfaction of creating artworks: AI-generated art dehumanises artworks. Perhaps the most satisfying aspect of generating an artwork lies in making it.
    • The questions over the capability of AI to capture subtle human emotions: It is also doubtful whether AI art will capture the most subtle of human emotions. How much humour is “humorous” for AI? Can AI express grief and pain in the most profound ways as described by our poets? Can AI capture the enigmatic smile of Mona Lisa that makes one believe that she is shrouded in mystery?

    Have you heard about Midjourney?

    • Midjourney is an AI based art generator that has been created to explore new mediums of thought.
    • It is an interactive bot, which uses machine learning (ML) to create images based on texts. This AI system utilises the concepts and tries to convert them into visual reality.
    • It is quite similar to other technologies such as DALL-E 2.

    AI

    Arguments in favor of such art

    • Thatre D opera Spatial generated by Midjourney: The question of whether AI art is causing “a death of artistry” was raised, last year, when an entry called “Théâtre D’opéra Spatial” generated from Midjourney (an artificial intelligence programme) by Jason M Allen won the Blue Ribbon at the Colorado State Fair.
    • Finding suitable prompts is no less than a genius art: AI artists like Allen think finding suitable prompts to create an artwork amounts to creativity and qualifies AI art as genuine or authentic.
    • AI could democratise art world: Some artists believe AI art could democratise the art world by removing gatekeepers.

    Concerns over the biases in data

    • There is bias in this data available for AI inputs due to a lack of representation of the less privileged communities’ women, people of colour and other marginalised groups.
    • Most of the training data for AI art currently emerges in the Global North and is often mired by the stereotypes of ableism, racism and sexism.
    • Historically, art has performed a political function as a venue for dissent. Can AI art overcome these inherent biases in data to bring out meaningful political engagement?

    AI

    Conclusion

    • AI-generated art can bring new ideas and possibilities to the art world, but it is important to think about how it might change people’s experience of art and if it takes away the human touch. It is also important to question if AI can truly capture the emotions that make art so special. It’s best to approach AI-generated art with an open mind and consider both the good and bad.
  • 23rd Jan 2023 | Prelims Daily with Previous Year Questions

    23rd Jan 2023 | Prelims Daily with Previous Year Questions

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  • State of the Economy Report and the Macroeconomic Stability

    Economy

    Context

    • The Reserve Bank of India (RBI) just-released State of the Economy report. The report suggests that while controlling inflation was a big concern in 2022, the bank may now be more focused on avoiding a recession in 2023. There is still debate about whether the recession will be short and mild or long and severe.

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    What is State of the Economy report?

    • A State of the Economy report is a paper that the Reserve Bank of India (RBI) releases which gives a summary of how the country’s economy is doing.
    • The report talks about things like prices going up, how much the economy is growing, how many people have jobs, and the bank’s plan for managing money.
    • The RBI uses the report to make decisions about interest rates and other economic rules, and it also helps people like economists, investors, and regular citizens understand the economy and make smart choices.

    Economy

    What the RBI’s State of the Economy report says?

    • Retail inflation eased: Retail inflation eased to 5.72 per cent in December. In November, the inflation print was 5.88 per cent. The government has mandated the central bank to keep inflation at 4 per cent with a +/- 2 per cent band.
    • Consumer price inflation within RBI’s upper tolerance limit: The report said the country’s macroeconomic stability is getting bolstered with inflation being brought into the tolerance band. consumer price inflation in the last two months falling within the RBI’s six per cent upper tolerance limit
    • Hopeful for the fiscal consolidation: It is even hopeful of fiscal consolidation underway at central and sub-national levels and the external current account deficit on course to narrow through the rest of 2022 and 2023. RBI said in a report that they want to keep prices steady at a certain level and bring it down to 4% by 2024.
    • Narrowing CAD: Lead indicators suggest that the current account deficit is on course to narrow through the rest of 2022 and 2023.
    • Stock market continue to outperform peers: The country’s stock markets stood out in 2022 and continue to outperform peers on the strength of macroeconomic fundamentals and retail participation.

    Who prepares the report and what the authors says?

    • Views expressed are not of the institution: The report was prepared by RBI’s deputy governor Michael Patra and other RBI officials. The views expressed in the report are of the authors and not of the institution, the report said.
    • India at a bright spot: Authors said the prospect of India as a bright spot amidst 2023’s encircling gloom is burnished by most recent history and current developments. By cross-country standards, the country’s economy exhibited resilience through 2022 in the face of the triad of shocks war; monetary policy tightening; and recurring waves of the pandemic.
    • India will be ahead of UK: According to the authors, at current prices and exchange rates, India will still be the 5th largest economy in the world in 2023, worth $3.7 trillion and will be ahead of the UK.

    Economy

    Back to basics: What is Monetary policy?

    • Monetary policy is the macroeconomic policy laid down by the central bank.
    • It involves the management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
    • A contractionary policy increases interest rates and limits the outstanding money supply to slow growth and decrease inflation.
    • During times of slowdown or a recession, an expansionary policy grows economic activity, by lowering interest rates, saving becomes less attractive, and consumer spending and borrowing increase.

    What are the concerns and prognosis over the report?

    • Predictions are too optimistic: The report’s release is significant, as it comes before the Union Budget for 2023-24. However, the report’s predictions may be too optimistic.
    • Risks tilted towards growth than inflation: The balance of risks is currently tilted towards growth rather than inflation, both globally and domestically.
    • Slowing down the pace of monetary tightening: It is appropriate for the RBI to slow down or pause the pace of monetary tightening. Monetary policy takes time to have an effect, so the impact of these increases may take a few quarters to realise actually.
    • Wait and Watch Approach: The RBI can afford to adopt a wait-and-watch approach and allow the impact of past actions to be fully felt. This does not mean neglecting inflation, as bringing it down to 4% is still important.

    Economy

    Conclusion

    • The world is, no doubt, viewing India favourably as an investment destination, both for its large domestic market and the need to de-risk from China in the current geopolitical environment. The government’s focus on improving the country’s physical as well as digital infrastructure is boosting the investors’ confidence. Demonstrating macroeconomic stability and policy credibility can be the icing on the cake to bring the world to India.

    Mains question

    Q. Highlight RBI’s State of the Economy report and discuss what makes India a favorable investment destination?

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  • Key takeaways form the World Economic Forum’s annual meeting

    World Economic Forum

    Context

    • The World Economic Forum’s Annual Meeting 2023, held in the Swiss town of Davos, ended Friday a conference that started in a world possibly fundamentally altered, but whose processes and outcomes remained pretty much business as usual.

    The theme this year was ‘Cooperation in a Fragmented World’.

    World Economic Forum (WEF)

    • Headquartered in Geneva, Switzerland, WEF is an international not-for-profit organization, focused on bringing the public and private sectors together to address the global political, social, and economic issues.
    • It was founded in 1971 by Swiss-German economist and Professor Klaus Schwab in a bid to promote the global cooperation on these most pressing problems.
    • The first meeting of WEF was held more than five decades ago in Davos, which has been the home of the annual gathering almost ever since, also becoming the shorthand for the event.

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    World Economic Forum

    key takeaways from WEF on the economy

    • Positive outlook for economy: Most business leaders were upbeat about the economy, with US and the European Union (EU) seemingly beyond the risk of a recession now. China ending its zero Covid curbs and opening shop again added to the positive outlook.
    • Caution from central banks: Central banks of the major economies cautioned that concerns still remained, and said they would keep interest rates high to ensure inflation is under check. For example, Stay the course is my mantra, European Central Bank President quoted. The US Federal Reserve Vice Chair Lael Brainard was quoted as reminding investors that “inflation remains high, and policy will need to be sufficiently restrictive for some time.
    • Potential impact on energy prices: Many also pointed out that China opening up could mean a rise in its energy consumption, thereby driving up energy prices.
    • Concerns for developing economies: As the richer nations look to focus inwards, protecting their own workers, energy sufficiency, supply lines, etc., concerns were raised that this policy direction would hit developing economies.

    World Economic Forum

    Climate change and green energy discussions at World Economic Forum

    • The need for green energy and financing: Everyone agreed upon the need for green energy and the need for more money to flight climate change.
    • GAEA initiative to unlock $3 trillion financing: According to the WEF’s website, The World Economic Forum, supported by more than 45 partners launched the Giving to Amplify Earth Action (GAEA), a global initiative to fund and grow new and existing public, private and philanthropic partnerships (PPPPs) to help unlock the $3 trillion of financing needed each year to reach net zero, reverse nature loss and restore biodiversity by 2050.
    • International Concerns and Reactions: The EU raised concerns over a US green energy law that benefits products, such as electric vehicles, made in America.
    • New Initiatives and Partnerships: The Press Trust of India (PTI) reported that more than 50 high-impact initiatives were launched at the event. 1.Maharashtra Institution for Transformation (MITRA) signed a partnership with the forum on urban transformation to give the state government strategic and technical direction. 2. A thematic centre on healthcare and life sciences is to be set up in Telangana. 3. The Coalition for Epidemic Preparedness and Innovations (CEPI) aims to develop new vaccines for future pandemics.

    Ukraine demands more military and financial aid

    • Military Aid and Financial Aid for Reconstruction: Ukraine kept up its demand for more military aid to fight its war against Russia, and more financial aid to rebuild after the war, saying the reconstruction fund commitments should start coming in now and not after the war ends.
    • President Zelenskyy’s Address and Criticism of US and Germany: While Ukraine President Volodymyr Zelenskyy gave a video address. In his address, Zelenskyy made an indirect criticism of the US and Germany dithering over sending tanks to his country.

    World Economic Forum

    Criticism and defence of the Davos Event

    • Spectacle of Rich and Powerful Talking about Poverty and Climate: The jarring spectacle of the Davos event where the uber-rich and powerful fly in on private jets to talk about poverty alleviation and climate action came in for criticism yet again.
    • Opportunity for Decision-Makers to Meet and Interact: However, others pointed out that despite its flaws, the conference is an opportunity for many decision-makers to meet and interact with each other.
    • The Economist’s View on the Importance of Communication and Conversation: As the Economist editor-in-chief Zanny Minton Beddoes put it, while the talks at Davos can be described as “highly-caffeinated speed dating”, more conversation and communication is better than less contact and less communication.

    Conclusion

    • The World Economic Forum highlighted the pressing need for green energy and financing to combat climate change. Though the event remained focused on business as usual, we can see that the WEF provided an opportunity for decision-makers to meet and interact, and more than 50 high-impact initiatives were launched at the event.

    Mains Question

    Q. Discuss some of the key takeaways from the WEF’s annual meeting 2023, with a specific focus on the discussions and initiatives related to the economy and climate change.

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