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Type: IOCR

  • OBOR Initiative

    ‘Route of Development’: Iraq’s Ambitious Infrastructure Plan

    IOCR | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Route of Development Project

    Mains level: Not Much

    iraq development

    Central Idea

    • Iraq aims to establish itself as a regional transportation hub by enhancing its road and rail infrastructure.
    • The ambitious project, known as the “Route of Development,” is estimated to cost $17 billion.

    Route of Development Project

    • Project Scope: The “Route of Development” will span 1,200 kilometers from the northern border with Turkey to the Gulf in the south.
    • Economic Objectives: The project aims to promote a sustainable non-oil economy and strengthen regional connectivity.
    • Port Capacity: The commercial port of Al-Faw will undergo expansion to handle cargo for the project.
    • Train Stations: Around 15 train stations will be constructed along the route, including major cities like Basra, Baghdad, Mosul, and up to the Turkish border.

    Challenges and Priorities

    • Infrastructure Condition: Iraq’s infrastructure, including roads, requires reconstruction and maintenance due to the impacts of war, corruption, and sanctions.
    • Focus on Electricity: Upgrading the failing electricity infrastructure is a priority for the government.

    Geopolitical Position and Economic Benefits

    • Strategic Geographical Location: Iraq aims to capitalize on its position by becoming a transportation hub for goods and people between the Gulf, Turkey, and Europe.
    • Port Expansion: The commercial port of Al-Faw will serve as a gateway for cargo before transportation through the new road and rail links.
    • Train Station Network: The construction of train stations in major cities along the route will facilitate efficient transportation.
    • Trade Opportunities: The Gulf presents significant trade prospects, especially in the transport of hydrocarbons.

    Challenges and Skepticism

    • Viability Concerns: Some experts question the project’s feasibility, highlighting the need for “fluidity” in transportation routes and the preference for direct shipping without intermediate loading and unloading.
    • Adaptation to Customer Preferences: Consideration should be given to evolving global transport dynamics and customer preferences.

     

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  • Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

    Highlights of the Joint Malnutrition Estimates (JME)

    IOCR | Governance | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: JME Report

    Mains level: Malnutrition status in India

    Central Idea

    • According to the Joint Malnutrition Estimates (JME) by UNICEF, WHO, and the World Bank, India has shown a reduction in stunting among children under five.

    Such reports (including NFHS) are credible sources of information to substantiate your answers in Mains answer writing ….

    What is Stunting and Wasting?

      Stunting Wasting
    Definition Impaired growth and development due to chronic malnutrition. Rapid weight loss and muscle wasting in a short period.
    Measurement Height-for-age comparison against standardized growth reference. Weight-for-height comparison against standardized growth reference.
    Causes Insufficient intake of essential nutrients, frequent infections, poor maternal health. Inadequate caloric intake, poor feeding practices, infectious diseases.
    Effects Irreversible consequences, reduced cognitive development, increased disease vulnerability. Increased morbidity and mortality, severe malnutrition.
    Time Frame Long-term condition Short-term condition
    Overall Nutritional Status Reflects chronic malnutrition Represents acute malnutrition
    Focus Impacts growth and development Impacts weight and muscle mass

     

    Decline in Child Stunting in India

    • The prevalence of stunting in India dropped from 41.6% in 2012 to 31.7% in 2022, with 1.6 crore fewer stunted children recorded.
    • India’s share of the global burden of stunting declined from 30% to 25% in the past decade.

    Concerns over Wasting

    • Wasting remains a concern in India, with an overall prevalence of 18.7% in 2022.
    • India contributes 49% to the global burden of wasting, reflecting the severity of this malnutrition indicator.
    • Two-thirds of wasting cases in India may be attributed to maternal malnutrition, leading to low birth weight for height.

    Rise in Obesity

    • The prevalence of obesity in India increased marginally from 2.2% in 2012 to 2.8% in 2022.
    • India’s obesity classification remains low compared to the global prevalence of 5.6%.
    • Obesity contributes to 8.8% of the global burden, with 31.8 lakh obese children in India.

    Way Forward

    • The JME report highlights the need for accelerated efforts to achieve global nutrition targets.
    • India’s progress aligns with the National Family Health Survey (NFHS) data, indicating a reduction in stunting.
    • More research is needed to understand the complexities of wasting, particularly its links to maternal malnutrition.
    • Continued focus on addressing malnutrition, access to health services, and maternal nutrition is crucial for further improvement.
    • Learning more about wasting and its determinants will be essential for tailored interventions in India and Asia.

     

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  • WTO and India

    WTO reforms a top priority: India

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: WTO

    Mains level: Reforms in multilateral institutions

    wto

    Central Idea

    • India has stressed the urgent need for prioritizing reforms within the World Trade Organisation (WTO).
    • India has been advocating for WTO reforms and improved dispute settlement mechanisms during G20 discussions.

    About WTO

    Functions and Principles
    Establishment 1 January 1995
    Functions
    • Negotiating trade agreements
    • Enforcing trade rules
    • Providing technical assistance and capacity building
    • Sharing trade-related information and conducting research
    Fundamental principles
    • Non-discrimination
    • Reciprocity
    • Transparency
    • Predictability and stability
    Membership 164 member countries representing over 98% of global trade
    Decision-making
    • Decisions made by consensus among member countries
    • General Council is the highest decision-making body

     

    Prioritizing WTO Reforms

    • India’s Push for Reforms: India has been actively advocating for reforms within the World Trade Organisation.
    • Better Dispute Settlement Mechanisms: Alongside reforms, India is pushing for improved dispute settlement mechanisms within the WTO.
    • Reaffirming Foundational Principles: The discussions aim to reaffirm the principles enshrined in the Marrakesh Agreement and the multilateral trade agreements, emphasizing the importance of an open, fair, inclusive, and transparent WTO.

    Reforms that India is seeking

    • Structural Reforms: There is an urgent need for reforms within the WTO to address issues such as transparency, shorter time frames, the establishment of a permanent panel body, and special and differential treatment for developing countries.
    • Benefit for Developing Countries: Developing countries, including India, can benefit from these reforms if proposals specific to their needs are accepted.
    • Trade Facilitation for Services: While the WTO has made progress with the Trade Facilitation Agreement (TFA) concerning goods, there is a need for reforms in trade facilitation for services. India, as a major service provider, stands to benefit from improved cross-border movement of people.
    • Inclusivity: It is crucial to establish procedures and practices that are more inclusive, particularly for developing countries.
    • Peace Clauses: Adoption of “peace clauses” for developing countries’ implementation of current agreements can formalize commitments by major trading powers to allow grace periods and exercise due restraint.
    • Evolving Negotiation Modes: The single package approach used in the Uruguay Round is not effective in the Doha Round, necessitating the exploration of new negotiation modes.
    • Strengthened Dispute Settlement Mechanism: The dispute settlement mechanism within the WTO requires strengthening and expediting to enhance its effectiveness.
    • Separation of Political and Human Rights Issues: There is a need to separate political and human rights issues from trade disputes under Sanitary and Phytosanitary (SPS) norms.

    Crossroads for WTO

    • Stalled Multilateral Trade Negotiations: The multilateral trade negotiations, including the Doha Round, have reached an impasse, with limited progress in overall rule-making.
    • Challenges from Alternative Trade Pacts: Alternative trade pacts, such as mega-regional arrangements, have emerged and posed challenges to the position of trade multilateralism.
    • Disagreements on Market Access and Protection: The impasse in the Doha Round primarily stems from differences between highly industrialized countries and large developing countries regarding market access and protection of vulnerable economic sectors.

    Importance of Addressing WTO Reforms

    • Vital Role of WTO: The Minister emphasized that addressing WTO reforms is of utmost importance as the organization plays a crucial role in ensuring fairness and transparency in global trade.
    • Backbone of Multilateral Trading System: The WTO forms the backbone of the multilateral trading system and its reforms are necessary to strengthen its functioning.

    India’s Aspirations in International Trade

    • Global Leadership Ambition: India has expressed India’s aspiration to emerge as a global leader in the international trade landscape.
    • E-commerce Market Potential: India is poised to become the world’s second-largest e-commerce market, reflecting its transformation driven by open markets, global integration, and a strong entrepreneurial spirit.

    Way Forward

    • The urgent need for WTO reforms necessitates concerted efforts and global attention to ensure the fairness, transparency, and effectiveness of the multilateral trading system.
    • India’s active participation in advocating for reforms, along with its ambition to become a global leader in international trade, reflects its commitment to fostering a thriving and inclusive global trade environment.
    • It is essential for countries to collaborate and engage in constructive dialogue to address the challenges and opportunities in the evolving global trade landscape.

    Back2Basics: WTO Agreements and Accords

    • General Agreement on Tariffs and Trade (GATT): The GATT is the predecessor to the WTO and was in effect from 1948 to 1994. It aimed to reduce trade barriers and promote international trade through negotiations and tariff concessions.
    • Agreement on Agriculture (AoA): This agreement aims to establish fair and market-oriented agricultural trading systems. It addresses issues such as market access, domestic support, and export subsidies related to agricultural products.
    • Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): The TRIPS agreement sets minimum standards for protecting intellectual property rights, including patents, copyrights, trademarks, and trade secrets.
    • Agreement on Trade-Related Investment Measures (TRIMs): This agreement prohibits certain investment measures that restrict trade or are inconsistent with the GATT’s principles.
    • Agreement on Sanitary and Phytosanitary Measures (SPS): The SPS agreement sets out rules for food safety and animal and plant health standards to ensure that countries do not use sanitary and phytosanitary measures as unjustified trade barriers.
    • Agreement on Technical Barriers to Trade (TBT): The TBT agreement aims to ensure that technical regulations, standards, and conformity assessment procedures do not create unnecessary obstacles to trade.
    • Agreement on Subsidies and Countervailing Measures (SCM): The SCM agreement regulates the use of subsidies and provides a framework for countervailing measures to address unfair trade practices arising from the use of subsidies.
    • Trade Facilitation Agreement (TFA): The TFA aims to simplify and streamline customs procedures, enhance transparency, and improve efficiency in international trade, with a focus on reducing trade costs and facilitating cross-border trade.

     

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  • Foreign Policy Watch: India-Australia

    India-Australia ties built on Trust: PM

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: India-Australia Relations, Role of Indian Diaspora

    australia

    Central Idea

    • PM Modi addressed a community event in Sydney, emphasizing the strong foundations of trust and respect between India and Australia.
    • He credited the Indian diaspora for the success of this relationship.
    • The event aimed to strengthen cultural ties and was attended by over 21,000 people, including Australian PM Anthony Albanese.

    India-Australia Relations: A Backgrounder

    • The India-Australia bilateral relationship has undergone evolution in recent years, developing along a positive track, into a friendly partnership.
    • The two nations have much in common, underpinned by shared values of a pluralistic, Westminster-style democracies, Commonwealth traditions, expanding economic engagement etc.
    • Several commonalities include strong, vibrant, secular and multicultural democracies, free press, independent judicial system and English language.

    Historical Perspective

    • Early colonization: The historical ties between India and Australia started immediately following European settlement in Australia from 1788.
    • A penal colony: All trade, to and fro from the penal colony of New South Wales was controlled by the British East India Company through Kolkata.
    • Diplomatic ties: India and Australia established diplomatic relations in the pre-Independence period, with the establishment of India Trade Office in Sydney in 1941.
    • Expansion of ties: The end of the Cold War and simultaneously, India’s decision to launch major economic reforms in 1991 provided the first positive move towards development of bilateral ties.

    Various dimensions of ties

    [A] Political partnership

    • Both countries are members of-
    1. G-20
    2. ASEAN Regional Forum (ARF),
    3. IORA (Indian Ocean Rim Association),
    4. Asia Pacific Partnership on Climate and Clean Development,
    5. East Asia Summit and
    6. The Commonwealth
    7. QUAD (Quadrilateral Security Dialogue)
    • Australia has been extremely supportive of India’s quest for membership of the APEC (Asia Pacific Economic Cooperation).
    • Australia wholeheartedly welcomed India’s joining of the MTCR (Missile Technology Control Regime).

    [B] Trade and Economy

    • 5th largest trade partner: India is the 5th largest trade partner of Australia with trade in goods and services.
    • Huge trade volume: Two-way trade between India and Australia was worth A$ 24.3 billion ($18.3 billion) in 2020, up from just $13.6 billion in 2007, according to the Australian government.
    • Uranium exports: After a series of attempts, in 2016, Australia opened the door for uranium exports to India.
    • R&D: An Australia-India Strategic Research Fund (AISRF) which was established in 2006, supports collaboration between scientists in India and Australia on cutting-edge research.

    [C] Cultural ties

    • P2P ties: There is a longstanding people-to-people ties, ever increasing Indian students coming to Australia for higher education.
    • Bond over cricket and tourism: Growing tourism and sporting links, especially Cricket and Hockey, have played a significant role in further strengthening bilateral relations between the two countries.
    • Skilled workforce: India is one of the top sources of skilled immigrants to Australia.
    • Indian students: The number of Indian students continue to grow with approximately 105,000 students presently studying in Australian universities.
    • Diaspora: After England, India is the second largest migrant group in Australia in 2020.

    [D] Strategic Partnership

    • In 2009, India and Australia established a ‘Strategic Partnership’, including a Joint Declaration on Security Cooperation which has been further elevated to Comprehensive Strategic Partnership in 2020.
    • The Mutual Logistics Support Agreement has been signed during the summit that should enhance defence cooperation and ease the conduct of large-scale joint military exercises.
    • There is a technical Agreement on White Shipping Information Exchange.
    • Both nations conduct bilateral maritime exercise AUSINDEX. In 2018, Indian Air Force participated for the first time in the Exercise Pitch Black in Australia.
    • Foreign and Defence Ministers of both countries agreed to meet in a ‘2+2’ format
    • The first-ever Quad Leaders’ Virtual Summit held on 12 March 2021 saw the participation of Prime Ministers of India, Australia, Japan and President of USA.
    • A Civil Nuclear Cooperation Agreement between the two countries was signed in September 2014 during the visit of then PM Tony Abbott to India.

    Significance of the ties

    • COVID Management: Australia is one of the few countries that has managed to combat COVID-19 so far through “controlled adaptation” by which the coronavirus has been suppressed to very low levels.
    • STEM: From farming practices through food processing, supply and distribution to consumers, the Australian agribusiness sector has the desired R&D capacity, experience and technical knowledge.
    • Natural resources: Australia is rich in natural resources that India’s growing economy needs. It also has huge reservoirs of strength in higher education, scientific and technological research.
    • Alliance with US: The two countries also have increasingly common military platforms as India’s defence purchases from the US continue to grow.
    • Affinity with ASEAN: Australia has deep economic, political and security connections with the ASEAN and a strategic partnership with one of the leading non-aligned nations, Indonesia.
    • Containing China: The Indo-Pacific region has the potential to facilitate connectivity and trade between India and Australia. Both nations can leverage their equation in QUAD to contain China.

    International cooperation

    • Support at UNSC: Australia supports India’s candidature in an expanded UN Security Council.
    • APEC: Australia is an important player in APEC and supports India’s membership of the organisation. In 2008, Australia became an Observer in SAARC.

    Some irritants in ties

    • Trade imbalance: India’s trade deficit with Australia has been increasing since 2001-02 due to India-Australia Free Trade Agreement. It is also a contentious issue in the ongoing RCEP negotiations which India left.
    • High tariff on agri products in India: India has a high tariff for agriculture and dairy products which makes it difficult for Australian exporters to export these items to India.
    • Non-tariff barriers in Australia: At the same time, India faces non-tariff barriers and its skilled professionals in the Australian labour market face discrimination.
    • Visa Policy: India wants greater free movement and relaxed visa norms for its IT professionals, on which Australia is reluctant.
    • Future of QUAD: Australian lobby has sparked speculation over the fate of the Quadrilateral Consultative Dialogue (the ‘Quad) involving India, Australia, Japan and the United States.
    • Nuclear reluctance: Building consensus on non-nuclear proliferation and disarmament has been a major hurdle given India’s status as a nuclear power.
    • Racism against Indians: Increasing Racist attacks on Indians in Australia has been a major issue.

    Way forward

    • Upgradation of 2+2 format: It is prudent too for New Delhi and Canberra to elevate the ‘two plus two’ format for talks from the Secretary level to the level of Foreign and Defence Ministers.
    • Removal of trade barriers: Both nations need to resolve disputes at the WTO with regard to the Australian sector can act as a serious impediment.
    • Balancing China: An ‘engage and balance’ China strategy is the best alternative to the dead end of containment.

     

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  • Foreign Policy Watch: India-Pacific Island Nations

    Forum for India Pacific Islands Cooperation (FIPIC)

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: FIPIC

    Mains level: Large Ocean Countries

    pacific

    Central Idea: The third summit of Forum for India Pacific Islands Cooperation (FIPIC) was recently held at Port Moresby in Papua New Guinea. It was attended by PM Modi.

    What is FIPIC?

    • The FIPIC is an intergovernmental forum that facilitates cooperation and dialogue between India and the Pacific island countries (PIC).
    • It was established by India in 2014 as a platform to enhance engagement and strengthen ties with the countries of the Pacific region.
    • FIPIC serves as a mechanism for mutual collaboration, addressing shared challenges, and promoting development cooperation between India and its Pacific island partners.

    Members of FIPIC:

    • FIPIC consists of 14 member-countries.
    • They are- Fiji, Cook Islands, Kiribati, Marshall Islands, Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.

    History of FIPIC

    • The establishment of FIPIC reflects India’s commitment to deepening its engagement with the Pacific island nations.
    • The inaugural FIPIC summit was held in November 2014 in Suva, Fiji, where India and the Pacific island countries came together to discuss bilateral and multilateral cooperation.
    • The summit marked a significant milestone in India’s efforts to strengthen relations with the Pacific island states and promote inclusive development in the region.

    Key highlights of the Summit

    (1) Imbibing perception change

    • During the FIPIC-3 summit held in Port Moresby, PM Modi emphasized the importance of recognizing the small island nations of the Pacific Ocean as “large ocean states.”
    • PM reiterated India’s commitment to supporting the development goals of the Pacific island states.

    (2) Advancing development goals

    • India expressed unwavering dedication to supporting Pacific island states in various ways.
    • Acknowledged challenges such as climate change, natural calamities, and disruptions in food and fuel supply chains.
    • India has been a reliable supplier of essential items, including vaccines, medicines, wheat, and sugar.

    (3) Voices to lead Global South

    • Prime Minister James Marape of Papua New Guinea urged India to serve as an advocate for the Global South.
    • Requested India’s representation in key global forums like the G-7 and G-20.

    Why does India need PIC?

    • Geopolitical Significance: Strengthening ties in Indo-Pacific to bolster regional influence, promote stability, and shape regional dynamics.
    • Maritime Trade Routes: Securing access to vital sea-lanes, ensuring smooth trade flow, and protecting maritime interests.
    • Resources: Expanding access to valuable resources such as minerals, hydrocarbons, and fisheries for economic growth and energy security.
    • Economic Opportunities: Exploring untapped markets, attracting investments, and fostering trade partnerships for mutual economic benefits.
    • Climate Change and Disaster Management: Collaborating on climate resilience strategies, sharing expertise in disaster management, and supporting sustainable development.
    • Diplomatic Relations: Establishing strategic alliances, enhancing multilateral cooperation, and strengthening India’s presence in the Pacific region.
    • Indian Diaspora: Supporting and engaging with the Indian diaspora, promoting cultural ties, and leveraging their contributions for bilateral cooperation and understanding.

    Conclusion

    • The FIPIC-3 summit provided a platform for India and Pacific island nations to deepen cooperation and address shared challenges.
    • India’s commitment to supporting development goals and its role as a reliable supplier underscores its dedication to the Pacific island states.
    • India’s active engagement in global forums and advocacy for the Global South aims to amplify voices and advance interests.
    • The summit signifies a strengthened partnership, fostering mutual growth and shared progress.

     

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  • Foreign Policy Watch: India-Russia

    Rasht-Astara Railway Link

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Rasht-Astara Railway Link

    Mains level: INSTC

    rasht

    Russia and his Iran has signed a deal to finance and build the 162 km Rasht-Astara Iranian railway, the main connection in the emerging North-South Transport Corridor.

    Rasht-Astara Railway Link

    • The Rash Astra Railway is a 162-kilometer railway connecting Rasht (Iran) and Astara (Azerbaijan) on the border.
    • It is part of the International North-South Transport Corridor (INSTC) and will significantly diversify global traffic flows.
    • The railway will facilitate connections between Russian ports on the Baltic Sea and Iranian ports in the Indian Ocean and the Gulf.

    About INSTC

    • The INSTC is a 7,200-kilometer Multi-Mode Transit System connecting India, Iran, Azerbaijan, Russia, Central Asia, and Europe.
    • It promotes transportation cooperation among member states and includes ship, rail, and road routes.
    • Membership has expanded to include additional countries, and observer states and Baltic countries have expressed interest in joining.

    Significance of INSTC for India

    • Central Asia trade: India has invested in the Chabahar Port in Iran, which serves as a doorway for trade with Central Asian countries.
    • Extended connection: INSTC offers potential connections to the Baltic, Nordic, and Arctic regions.
    • Bypassing Pakistan: INSTC provides an alternate route for India to connect with Central Asia, bypassing obstacles in Pakistan.
    • Fastest freight: It reduces transit time by 40% and freight costs by 30% compared to the Suez Canal route.
    • Alternative to Suez: Russia claims the project could ultimately rival the Suez Canal in terms of trade flows.

    Challenges of INSTC

    • Challenges include limited financial support from major international institutions due to US sanctions on Iran.
    • Harmonization of tariffs and customs, increased private sector involvement, and improved informational connectivity are necessary for success.

    Conclusion

    • More financing, cooperation, political will, and strategic planning are required to realize the full benefits of INSTC.
    • Addressing demand deficits and enhancing informational connectivity are crucial.
    • Collaboration and the establishment of industrial parks and special economic zones can contribute to the corridor’s development and commercial value.

     

    Key terminologies

    Multi-Mode Transit System: A system that integrates multiple modes of transportation, such as ship, rail, and road, for efficient movement of goods.

    Joint Comprehensive Plan of Action (JCPOA): An agreement reached in 2015 between Iran and world powers regarding Iran’s nuclear program.

    Suez Canal: A major global trade route connecting the Mediterranean Sea to the Red Sea.

    Chabahar Port: A port in Iran’s Sistan-Balochistan province, providing India with access to Central Asian countries.

    Baltic Countries: Countries located in the Baltic region of Northern Europe, including Latvia and Estonia.

     

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

    WHO’s advisory on Non-Sugar Sweeteners

    IOCR | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Non-Sugar Sweeteners

    Mains level: Read the attached story

    sweet

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

    What are Non-Sugar Sweeteners?

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

    WHO’s Finding

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

    Concerns and Recommendations

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

    What lies ahead?

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

     

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  • RBI Notifications

    RBI to pull out ₹2000 notes from active circulation

    IOCR | Economics | Mains Paper 3: Money-Laundering & Its Prevention

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: RBI regulation of Currency

    2000

    Central Idea

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

    Legal Tender Status of ₹2,000 Banknotes

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

    About the ₹2000 Notes

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

    Reasons for withdrawal

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

    Withdrawal process

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

    Impact and financial analysis

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

    Clean Note Policy

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

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

    Key issues

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

    FAQs: Exchanging and depositing ₹2,000 Banknotes

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

     

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  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    India-EU discuss ways to resolve Carbon Border Tax

    IOCR | Enviro & Biodiversity | Mains Paper 1: Arts & Culture

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Carbon Border Adjustment Mechanism (CBAM)

    Mains level: Read the attached story

    Central Idea

    Why such move?

    • The EU is India’s second-largest trading partner and export market.
    • India has expressed confidence that the intention behind CBAM was not to create a trade barrier but to promote sustainability.
    • CBAM has potential impact on India’s Steel and Aluminum sectors.

    Carbon Border Adjustment Mechanism (CBAM)

    Proposed by European Union (EU)
    Purpose To reduce carbon emissions from imported goods and prevent competitive disadvantage against countries with weaker environmental regulations
    Objectives Reduce carbon emissions from imported goods

    Promote a level playing field between the EU and its trading partners

    Protect EU companies that have invested in green technologies

     

    How does CBAM work?

    Coverage Applies to imported goods that are carbon-intensive
    Integration Covered by the EU’s Emissions Trading System (ETS), which currently covers industries like power generation, steel, and cement
    Implementation CBAM taxes would be imposed on the carbon content of imported goods at the border, and the tax rates would be based on the carbon price in the EU ETS
    Exemptions Possible exemptions for countries that have implemented comparable carbon pricing systems
    Revenue Use Revenue generated from CBAM taxes could be used to fund the EU’s climate objectives, such as financing climate-friendly investments and supporting developing countries’ climate efforts

     

    Who will be affected by CBAM?

    Details
    Countries Non-EU countries, including India, that export carbon-intensive goods to the EU
    Items Initially covers iron and steel, cement, aluminium, fertilisers, and electric energy production
    Expansion The scope of the CBAM may expand to other sectors in the future

    Advantages offered

    • Encourages non-EU countries to adopt more stringent environmental regulations, reducing global carbon emissions.
    • Prevents carbon leakage by discouraging companies from relocating to countries with weaker environmental regulations.
    • Generates revenue that could be used to support EU climate policies.

    Challenges with CBAM

    • Difficulty in accurately measuring the carbon emissions of imported goods, especially for countries without comprehensive carbon accounting systems.
    • Potential for trade tensions with the EU’s trading partners, especially if other countries implement retaliatory measures.

    Ways to ease impact of CBAM

    To minimize the impact of CBAM, India can consider several actions:

    • Set up a carbon trading mechanism: To reflect the level of development and adjust the carbon tax paid domestically when paying CBT to the EU.
    • Re-designate taxes on essential products: Make these as carbon taxes, which could help lower the net impact of CBT.
    • Create a cadre of energy auditors: To ensure fair assessment of carbon emissions for products and help the industry calculate carbon intensity and adopt cleaner technologies.
    • Start an industry awareness program: To educate sectors affected by CBT and create a dedicated group involving government, industry associations, and researchers.
    • Devise a WTO-compatible retaliation mechanism: To counter CBT, considering that developing countries exporting to developed nations will also suffer from it.
    • Sign new Free Trade Agreements (FTAs): After resolving the CBT issue, as high CBT would undermine the benefits of zero import duties.
    • Expose the perceived hypocrisy: Utilize global platforms to expose offshoring pollution of developed countries and proposing to tax imports, while not addressing their own consumption patterns.

    Conclusion

    • The CBAM is a proposed policy by the EU to reduce carbon emissions from imported goods and to promote a level playing field between the EU and its trading partners.
    • Although the CBAM has its challenges, it has the potential to incentivize non-EU countries to adopt more stringent environmental regulations and reduce global carbon emissions.

     

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  • RBI Notifications

    RBI to join Greenwashing TechSprint

    IOCR | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Greenwashing, Global Financial Innovation Network (GFIN)

    Mains level: Read the attached story

    Central Idea: The RBI has announced its participation in the Global Financial Innovation Network’s (GFIN) Greenwashing TechSprint.

    What is Greenwashing?

    • Greenwashing is a term used to describe the practice of making exaggerated, misleading, or unsubstantiated claims about the environmental, social, and governance (ESG) credentials of a product, service, or company.
    • It is a deceptive marketing strategy that aims to portray an organization as environmentally friendly or socially responsible, even when its actions or practices do not align with these claims.
    • It creates the perception that a company is taking steps towards sustainability or social responsibility, but in reality, it may be engaging in practices that are harmful to the environment or society.

    There are various forms of greenwashing that companies may employ to deceive consumers or investors. These include:

    1. Vague or ambiguous claims: Companies may use general statements or buzzwords without providing specific details or evidence to support their environmental or social claims. For example, stating that a product is “eco-friendly” without explaining the specific environmental benefits or certifications.
    2. Irrelevant or misleading labels: Companies may use misleading labels or certifications that give the impression of sustainability or social responsibility but lack meaningful standards or independent verification. This can confuse consumers who rely on such labels to make informed choices.
    3. Hidden trade-offs: Greenwashing can involve emphasizing one positive aspect of a product or company’s operations while ignoring or downplaying other negative impacts. For instance, a company may highlight its use of renewable energy while disregarding other harmful environmental practices.
    4. Lack of transparency: Companies may fail to provide transparent information about their sustainability practices or refuse to disclose relevant data. This lack of transparency makes it difficult for consumers to verify the accuracy of the company’s claims.
    5. Inconsistent messaging: Some companies may adopt green initiatives or promote sustainable products as a public relations exercise, without making substantial changes to their overall operations. This inconsistency between their messaging and actual practices is a form of greenwashing.

    Implications of greenwashing

    • It undermines consumer trust, as people may make purchasing decisions based on misleading information.
    • It also hampers the credibility of genuinely sustainable businesses by creating scepticism in the market.
    • Moreover, it can divert attention and resources away from genuinely sustainable companies and initiatives.

    Back2Basics: Global Financial Innovation Network (GFIN)

    • GFIN was officially launched in January 2019.
    • It was inspired by the successful collaboration between 11 financial regulators during a cross-border pilot project known as the “Global Sandbox” in 2018.
    • The pilot project demonstrated the benefits of regulatory cooperation and information sharing in fostering responsible innovation in the financial sector.
    • GFIN consists of financial regulators and related organizations from around the world.
    • The network includes regulatory authorities, central banks, and supervisory bodies.

     

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