Note4Students
From UPSC perspective, the following things are important :
Prelims level: Card-on-File Tokenisation (CoFT)
Mains level: Read the attached story
Central Idea
- The Reserve Bank of India (RBI) has expanded the scope of card-on-file tokenisation (CoFT) services to include card-issuing banks and institutions, enhancing the security of digital payments.
- Previously, tokenisation services were primarily provided through merchants. The RBI’s recent notification marks a significant shift in this approach.
Understanding CoFT and Its Importance
- Card-on-File (CoF) Concept: Traditionally, merchants stored customer card details (CoF) on their platforms, posing risks to financial data security.
- Tokenisation Solution: To mitigate data breach risks, the RBI introduced tokenisation, where a unique token replaces actual card details at the merchant’s end.
- Regulatory Measures: In March 2020, RBI mandated that payment aggregators and merchants should not store actual card data, aiming to minimize system vulnerabilities. The deadline for compliance was extended to December 2021 following industry requests.
Implementation of CoFT by Card Issuers
- Channels for Token Generation: Customers can generate CoFT tokens through mobile and internet banking, offering a convenient and secure method for digital transactions.
- Consent and Authentication: Token generation requires explicit customer consent and Additional Factor of Authentication (AFA) validation, ensuring user control and security.
- Flexibility for Cardholders: Cardholders have the flexibility to tokenise their cards at any time and select specific merchants for maintaining tokens.
- Token Issuance: The tokens can be issued either by the card network, the issuer, or both, providing multiple layers of security.
Impact and Adotion of CoFT
- Enhancing Safety and Convenience: CoFT aims to secure card data without compromising the convenience of card transactions.
- Implementation Timeline: The RBI introduced CoFT in 2021, with full rollout from October 1, 2022.
- Usage Statistics: Since its implementation, over 56 crore tokens have been created, facilitating transactions worth over ₹5 lakh crore.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FTA, CEPA
Mains level: India-Oman Trade Relations
Central Idea
- India and Oman are rapidly progressing in their negotiations for a Comprehensive Economic Partnership Agreement (CEPA), expected to be signed in January 2024.
- The second round of talks was recently concluded in Muscat, indicating both countries’ eagerness to finalize the deal.
India-Oman Trade Relations
- Export Destination: Oman is India’s third-largest export destination in the Gulf Cooperation Council (GCC), making the FTA crucial for enhancing Indian exports.
- Current Trade Dynamics: Over 80% of Indian goods currently enter Oman with an average import duty of 5%, and the FTA aims to reduce these barriers.
Potential Benefits of the FTA
- Boost in Exports: The agreement is expected to significantly increase Indian exports in various sectors, including gasoline, iron and steel, electronics, and machinery.
- Key Export Sectors: Sectors like motor gasoline, iron and steel products, electronics, machinery, textiles, plastics, boneless meat, essential oils, and motor cars are likely to benefit from duty elimination.
Economic Context and Strategic Importance
- Oman’s Economy: With a GDP of about USD 115 billion and a higher per capita income compared to India, Oman presents a market for diversified and higher-value Indian goods and services.
- Bilateral Trade Growth: India-Oman bilateral trade reached USD 12.39 billion in 2022-23, with Indian exports and imports showing significant growth.
- Oman’s Position: Oman’s strategic location in the Arabian Gulf region, with key ports along the Arabian Sea and the Gulf of Oman, is of utmost importance to India.
- Historical Ties: The longstanding connection between Oman’s ruling family and India has fostered strong bilateral relations, with a significant Indian community contributing to these ties.
India-Oman Strategic Partnership
- Defense and Security: The partnership, strengthened by a MoU signed in 2005, includes joint exercises and cooperation in maritime security.
- Trade and Commerce: Bilateral trade and joint ventures are key pillars of engagement, with significant Indian investment in Oman.
Future Collaborations and Regional Stability
- Space and Rare Earth Metals: Prospects for cooperation in space exploration and rare earth metals exploration are on the horizon.
- Connectivity Projects: Oman could play a crucial role in India’s proposed connectivity corridors and infrastructure projects in West Asia.
Conclusion
- Shared Interests: The deepening India-Oman relationship, marked by shared interests and mutual respect, positions Oman as India’s gateway to West Asia.
- Broader Engagement: As India seeks to expand its global outreach, particularly in West Asia, Oman’s strategic importance and balanced foreign policy make it a key ally in the region.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Mental Health Issues
Central Idea
- The World Health Organization (WHO) recently declared loneliness a significant global health threat, with an estimated 10% of adolescents and 25% of older people affected worldwide.
- Despite being a collectivistic society with over 140 billion people, loneliness in India remains relatively understudied and unacknowledged as a public health and social issue.
Understanding Loneliness
- Definition: Loneliness is defined as the unpleasant experience due to a deficiency in one’s network of social relations, either quantitatively or qualitatively.
- Health Impact: Comparable to smoking 15 cigarettes a day, loneliness can lead to severe mental and physical health issues, including heart disease, depression, and decreased longevity.
Data and Trends in India
- Historical Data: Studies from the early 1990s to recent years show varying rates of loneliness, with a notable increase in loneliness among the elderly and the highly educated.
- Pandemic Effect: COVID-19 and subsequent lockdowns have exacerbated loneliness, particularly among young people and those living alone.
Disparities and Challenges
- Higher Among Educated Youth: Young, highly educated individuals face disproportionately higher rates of unemployment and loneliness, indicating a structural issue in the Indian economy.
- Cultural Stigma: In India, loneliness is often dismissed as a phase or a state of mind, and discussing mental health is stigmatized, making it challenging to address the issue effectively.
Public Health Implications
- Rising Disease Burden: Loneliness contributes to an increased risk of various diseases, potentially inflaming India’s already rising communicable and non-communicable disease burden.
- Inadequate Healthcare Infrastructure: India’s healthcare system struggles with inadequate staff, infrastructure, and budgetary allocation, further complicating the response to the loneliness epidemic.
The Indian Experience of Loneliness
- Cultural Differences: Unlike Western countries, India’s collectivistic culture and socioeconomic barriers present unique challenges in understanding and addressing loneliness.
- Marginalized Communities: Loneliness disproportionately affects marginalized identities, and addressing it requires understanding the intersection of social inequity and mental health.
Addressing Loneliness as a Structural Problem
- Need for Targeted Interventions: Recognizing loneliness as a distinct condition can help develop interventions tailored to India’s cultural context.
- Community-Based Solutions: Addressing loneliness may require community-focused strategies that respond to structural inequities rather than solely clinical approaches.
Conclusion
- National-Level Surveys: Conducting comprehensive surveys in local languages can help understand the true scale of loneliness in India’s diverse population.
- Holistic Approach: Combating loneliness in India requires a multifaceted approach that includes improving mental health literacy, enhancing healthcare infrastructure, and addressing social inequalities.
- Continuous Engagement: As loneliness gains recognition as a public health issue, India must continuously adapt its strategies to effectively support those affected by this silent epidemic.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UAPA
Mains level: Read the attached story
Central Idea
- The Ministry of Home Affairs (MHA) has declared the Muslim League Jammu Kashmir faction as an “unlawful association” under the Unlawful Activities (Prevention) Act (UAPA) for five years.
- It is a very rare occasion that any election-contesting political party has been banned under UAPA.
Government’s Stance
- The Union Home Minister emphasized that the organization and its members are involved in anti-national and secessionist activities, supporting terrorism, and inciting people to establish Islamic rule in Jammu and Kashmir.
- It stated that the faction is engaged in anti-India and pro-Pakistan propaganda, aiming for Jammu and Kashmir’s secession from India, its merger with Pakistan, and the establishment of Islamic rule.
About Understanding the Unlawful Activities (Prevention) Act (UAPA)
- Purpose: The UAPA aims to prevent unlawful activities and associations in India, focusing on maintaining the country’s integrity and sovereignty. Under Section 3 of the UAPA Act, the government has powers to declare an association “unlawful”.
- Evolution: Originally passed in 1967, the UAPA has evolved from the Terrorist and Disruptive Activities (Prevention) Act (TADA) and the Prevention of Terrorism Act (POTA), with significant amendments in 2004 to include “terrorist act” in its scope.
- Unlawful Activities: These include actions, whether by deeds, words, or visible representation, that work towards the cession or secession of a part of India, disrupt its sovereignty and territorial integrity, or cause disaffection against the country.
- Unlawful Association: Under Section 3 of the UAPA Act, the government has powers to declare an association “unlawful”. An association can be deemed “unlawful” if it engages in, supports, or encourages unlawful activities, as defined under Section 2(p) of the UAPA.
Unlawful Activities and Funding
- Fundraising for Terrorism: The Ministry highlighted that the outfit has been raising funds through various sources, including Pakistan, to support unlawful activities and terrorism.
- Stone-Pelting Incidents: The group’s involvement in stone-pelting against security forces was cited as a sign of disrespect towards India’s constitutional authority and setup.
Linkages with Terrorist Organizations
- Terror Connections: The MHA provided evidence of the faction’s connections with banned terrorist organizations and its role in supporting terrorist activities to instill terror in the country.
- Government’s Concerns: The Central government expressed concerns that if unchecked, the faction would continue its anti-national activities, challenging India’s territorial integrity, security, and sovereignty.
Implications of the Ban
- UAPA Enforcement: The declaration under Section 3 (3) of the UAPA signifies a stringent approach against the group’s activities for the next five years.
- National Security Focus: This move aligns with the government’s commitment to maintaining national security and integrity, particularly in the sensitive region of Jammu and Kashmir.
Conclusion
- Strong Message: The government’s decision sends a clear message against any forces acting against India’s unity, sovereignty, and integrity.
- Continued Vigilance: The ban reflects India’s ongoing efforts to combat separatism and terrorism, ensuring peace and stability in Jammu and Kashmir and across the nation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: INS Imphal
Mains level: Not Much
Central Idea
- INS Imphal (Pennant D68), the third ship of the Visakhapatnam class stealth-guided missile destroyers, is set to join the Indian Navy.
- Part of Project 15B, INS Imphal follows the lineage of the Delhi and Kolkata classes of indigenous destroyers.
About INS Imphal
|
Details |
| Ship Name |
INS Imphal (Pennant D68) |
| Class |
Visakhapatnam class stealth-guided missile destroyer (Project 15B) |
| Commissioning Date |
Scheduled for December 26 |
| Builder |
Mazagon Dock Shipbuilders Limited (MDSL) |
| Design |
Indian Navy’s Warship Design Bureau |
| Propulsion System |
Combined gas and gas (COGAG) configuration with four gas turbines |
| Maximum Speed |
30 knots |
| Range |
4000 nautical miles |
| Armament |
BrahMos surface-to-surface cruise missiles
Barak-8 surface-to-air missiles
127 mm main gun
AK-630 30mm guns
Torpedo launchers and anti-submarine rocket launchers |
| Helicopter Facilities |
Can operate two multi-role helicopters (Sea King or HAL Dhruv) |
| Strategic Features |
Stealth capabilities for reduced radar signature
Advanced combat management system
Total atmospheric control system (TACS) for protection against nuclear, biological, and chemical threats |
| Significance |
Represents advanced naval warfare capabilities and strategic asset for the Indian Navy |
| Tribute to Northeast India |
Named after the city of Imphal, honoring the strategic and historical significance of the Northeast region |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: One-Hour Trade Settlement, T+1 Settlement Cycle
Mains level: Read the attached story
Central Idea
- The Securities and Exchange Board of India (SEBI) has proposed introducing T+0 (same day) and instant settlement cycles in the equity cash segment, alongside the existing T+1 cycle.
Current Settlement Cycle
- Evolution: SEBI shortened the settlement cycle from T+5 to T+3 in 2002, and then to T+2 in 2003. The T+1 cycle was introduced in 2021 and fully implemented by January 2023.
- T+1 Cycle: Currently, the settlement of funds and securities occurs on the next day after the trade.
About T+0 Settlement Cycle
- Phased Implementation: SEBI plans to introduce the shorter cycle in two phases: Phase 1 with T+0 Settlement and Phase 2 with Instant Settlement.
- T+0 Settlement Details: In Phase 1, trades executed until 1:30 PM will be settled by 4:30 PM on the same day.
- Instant Settlement Mechanics: Phase 2 envisages immediate trade-by-trade settlement, with trading continuing until 3:30 PM.
Scope and Implementation
- Initial Focus: Initially, the T+0 settlement will be available for the top 500 listed equity shares based on market capitalization, implemented in three tranches.
- Surveillance Measures: The same surveillance measures applicable in the T+1 cycle will apply to the T+0 cycle. Trade-for-trade settlement securities will not be eligible for T+0.
Rationale behind Introducing a Shorter Settlement Cycle
- Market Growth and Efficiency: With the significant growth in market volumes and participants, SEBI aims to enhance market efficiency and safety, especially for retail investors.
- Technological Advancements: The evolution of payment systems like UPI and the sophistication of market infrastructure support the feasibility of shorter settlement cycles.
- Investor Attraction: Faster transactions, reliability, and low costs are key factors that attract investors, making Indian securities a more appealing asset class.
Features of the Proposed T+0 Settlement Mechanism
- Early Pay-In Trend: A large percentage of retail investors already make early pay-ins of funds and securities, indicating readiness for instant settlement.
- Instant Receipt Benefits: The mechanism enables instant receipt of funds and securities, reducing settlement shortages and enhancing investor control.
- Investor Protection: Direct crediting of funds and securities into investors’ accounts, especially for UPI clients, strengthens investor protection.
Benefits of the New Mechanism
- Flexibility for Clients: The new mechanism offers faster payouts of funds to sellers and securities to buyers, providing greater flexibility and control.
- Market Ecosystem Advantages: The faster settlement cycle is expected to enhance the operational efficiency of the securities market, benefiting the entire ecosystem.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Space missions in 2024
Mains level: Read the attached story
Central Idea
- The year 2024 is set to be a landmark year in space exploration, following significant achievements in 2023, including NASA’s OSIRIS-REx and India’s Chandrayaan-3 missions.
Upcoming Missions
- The year will feature several key missions under NASA’s Artemis plan and Commercial Lunar Payload Services, along with other international endeavors.
[1] Europa Clipper Mission
- Objective: NASA’s Europa Clipper will explore Jupiter’s moon, Europa, known for its icy surface and potential subsurface saltwater ocean.
- Significance: The mission aims to assess Europa’s habitability for extraterrestrial life by studying its icy shell, geology, and ocean.
- Launch Details: Scheduled for launch on October 10, 2024, aboard a SpaceX Falcon Heavy rocket, with arrival at Jupiter set for 2030.
[2] Artemis II Mission
- Program Goals: Part of NASA’s Artemis program to return humans to the Moon, including plans for a sustained presence and future Mars missions.
- Mission Specifics: Artemis II, following the uncrewed Artemis I, will be the first crewed mission orbiting the Moon since 1972, planned for November 2024.
[3] VIPER Lunar Mission
- Mission Overview: VIPER (Volatiles Investigating Polar Exploration Rover) aims to explore the Moon’s south pole for volatiles like water and carbon dioxide.
- Technology and Schedule: Equipped to handle extreme lunar temperatures, VIPER’s launch is scheduled for November 2024, focusing on resources for future human exploration.
[4] Lunar Trailblazer and PRIME-1 Missions
- SIMPLEx Program: These missions are part of NASA’s Small, Innovative Missions for Planetary Exploration (SIMPLEx), offering cost-effective, rideshare opportunities.
- Objectives: Lunar Trailblazer will orbit the Moon to map water locations, while PRIME-1 will test drilling technology, both scheduled for mid-2024.
[5] JAXA’s Martian Moon eXploration (MMX) Mission
- Mission Focus: JAXA’s MMX mission aims to study Mars’ moons, Phobos and Deimos, to determine their origin.
- Science Operations: The spacecraft will conduct a three-year mission, including landing on Phobos and returning a sample to Earth, with a launch planned around September 2024.
[6] ESA’s Hera Mission
- Mission Purpose: Hera, by the European Space Agency, will study the Didymos-Dimorphos asteroid system, following NASA’s DART mission’s kinetic impact in 2022.
- Planetary Defense: Hera will assess the impact of DART’s collision and study the asteroids’ physical properties, with a launch set for October 2024.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: India's steel sector
Mains level: Read the attached story
Central Idea
- The Indian government is focusing on the steel sector with the Production Linked Incentive (PLI) scheme 2.0 and ensuring raw material supply in 2024.
- Minister of State for Steel highlighted these initiatives, emphasizing the promotion of scrap usage in steel production.
Growth and Recovery Post-Pandemic
- Resilience: The steel sector has shown a strong recovery following the impact of the COVID-19 pandemic in 2020-21.
- Production and Consumption: From April to November 2023, crude steel production increased by 14.5% y-o-y to 94.01 Million Tonnes (MT), and finished steel consumption rose by 14% to 86.97 MT.
Targets and Technological Advancements
- Capacity Goal: India aims to reach an installed steel manufacturing capacity of 300 MT by 2030, currently at around 161 MT.
- Innovation: Efforts are underway to integrate artificial intelligence and new technologies to enhance steel output and reduce carbon emissions.
PLI Scheme and Industry Expansion
- PLI Scheme 1.0: The first phase aimed to boost speciality steel production, creating an additional capacity of around 25 MT.
- Capacity Increase: Steel players are expanding their capacities, with the government facilitating project clearances and easing business operations.
Challenges and Concerns
- Rising Imports and Costs: The industry faces challenges with increasing imports, high raw material prices, and geopolitical uncertainties.
- Dependency: India relies heavily on imports for coking coal, a critical raw material for steel production.
Global Steel Industry and India’s Role
- India’s Growth: India, the world’s second-largest steel producer, has shown robust growth, significantly contributing to the global steel industry.
- Comparison with China: While China remains the largest producer, India has outpaced China in terms of growth rate in recent years.
Demand and Import Dynamics
- Sectoral Demand: The construction sector, driven by government infrastructure spending and private investment, leads the demand for steel in India.
- Import Measures: The government has implemented anti-dumping duties and other barriers to address steel dumping, particularly from China and Vietnam.
Price Trends and Future Outlook
- Domestic Prices: Indian steel prices have increased due to strong demand, but global uncertainties may impact future price hikes.
- Global Market Influence: Domestic pricing trends may be influenced by global economic recovery and price movements in the US and Europe.
Conclusion
- Strategic Focus: The Indian government’s initiatives, like the PLI scheme, aim to strengthen the steel sector’s global competitiveness and self-reliance.
- Balancing Growth and Challenges: While the sector shows promising growth, addressing challenges like raw material dependency and import pressures remains crucial.
- Global Positioning: India’s significant role in the global steel market underscores its potential to influence industry trends and drive economic growth.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Veer Bal Divas
Mains level: Not Much
Introduction
- The Prime Minister paid homage to the courage and sacrifice of the Sahibzade, the sons of Guru Gobind Singh, the tenth Sikh Guru.
- This day, announced on January 9, 2022, commemorates the martyrdom of Sahibzada Zorawar Singh and Sahibzada Fateh Singh.
Veer Bal Divas: A Day of Remembrance
- Inception: Veer Bal Divas was established to honor the young Sahibzade who were martyred at the ages of 6 and 9.
- Guru Gobind Singh’s Legacy: Guru Gobind Singh, as the tenth Guru of Sikhs and founder of the Khalsa, holds a significant place in Sikh history.
The Legend of the Sahibzades
- Meaning of Sahibzada: In Punjabi, “Sahibzada” means “son,” referring to the four sons of Guru Gobind Singh.
- Sacrificial Week: The week from December 21 to 27 is observed in memory of the Sahibzades’ sacrifices for Sikhism and Hinduism.
- Martyrdom for Faith: The Sahibzades, Ajit Singh, Jujhar Singh, Zorawar Singh, and Fateh Singh, were martyred defending their faith against forced conversion.
Backstory of Their Martyrdom
- Khalsa Panth and Anandpur Sahib: After establishing the Khalsa Panth, Guru Gobind Singh left Anandpur Sahib with his family in December 1704 amidst Aurangzeb’s invasion.
- Capture and Martyrdom: The younger Sahibzades were captured by Subedar Wazir Khan of Sirhind and faced pressure for religious conversion, leading to their tragic martyrdom.
- Elder Sahibzades’ Sacrifice: The elder Sahibzades, Ajit Singh and Jujhar Singh, were martyred in the battle of Chamkaur in 1705.
Implications and Historical Impact
- Guru Gobind Singh’s Response: Upon learning of their martyrdom, Guru Gobind Singh wrote the ‘Zafarnama’ to Aurangzeb, declaring the Khalsa’s readiness to challenge his empire.
- Baba Banda Singh Bahadur’s Revenge: He avenged the Sahibzades’ martyrdom, punishing Wazir Khan and establishing Sikh dominance in the region.
- Emergence of the Sikh Empire: This sacrifice paved the way for the later establishment of a vast Sikh empire under Maharaja Ranjit Singh.
Significance in Indian History
- A Watershed Moment: The martyrdom of the Sahibzades is a pivotal event in Indian history, remembered with both respect and sorrow.
- Legacy in Sikh Tradition: The Sahibzades’ names are honored in the Sikh Ardas, symbolizing their enduring legacy in Sikh faith and history.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Konsachem Festival
Mains level: Read the attached story
Central Idea
- In Goa, August marks the formation of new rice grains, celebrated through the festival of Konsachem.
Konsachem Festival and Its Traditions
- Background: Konsachem, observed by Goan Hindus and Catholics, honors the new rice grains, known as konxeo in Konkani.
- Shared Rituals: The first harvested rice sheaves are taken for blessings – to deities by Hindus and to saints by Catholics.
- Catholic Celebrations: For Goan Catholics, the festival peaks on August 24, the Feast Day of St. Bartholomew, one of Jesus Christ’s 12 Apostles.
- Observances: The celebration includes a procession, ritual cutting of grain, and a thanksgiving mass, with offerings made to St. Bartholomew.
Bartholomew’s Legacy and Christian Faith in India
- Missionary Journey: Bartholomew is believed to have landed in Kallianpur and preached along the Konkan coast, reaching as far as Karachi.
- Lesser-Known Apostles: While St. Thomas’s mission in Kerala and Tamil Nadu is well-documented, St. Bartholomew’s contributions in India are less known but significant.
- Martyrdom and Influence: He is revered for his martyrdom in Azerbaijan and his role in the Christianization of Armenia and Georgia.
- Pre-Portuguese Christian Origins: Research by scholars underscores Christianity’s roots in India dating back to the Apostles, reinforcing its integral place in Indian faith traditions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Field Pansy Flower
Mains level: NA
Central Idea
- Researchers have found that a flower species in Paris, the field pansy (Viola arvensis), is evolving rapidly, exhibiting reduced nectar production and smaller flower sizes.
- This study aims to understand the impact of these evolutionary changes on plant-pollinator interactions.
Changing Nature of Field Pansy
- Decreased Nectar and Size: The wild pansy variety in Paris showed a 20% reduction in nectar production and a 10% decrease in flower size.
- Comparative Analysis: Scientists compared current flower growth with seeds from 20-30 years ago, observing notable changes.
- Adaptation to Pollinator Decline: The evolution towards self-pollination in field pansies is attributed to the decreasing availability of insect pollinators.
- Experimental Design: The study employed the “resurrection ecology” method, planting seeds from the 1990s and 2000s alongside their 2021 descendants.
Implications of Self-Pollination and Evolutionary Shifts
- Contrast with Angiosperm Convention: The move towards self-pollination deviates from the typical reliance of angiosperms on insects for pollination.
- Long-Term Coevolution: The traditional plant-insect relationship, involving nectar production for pollination, has evolved over 100 million years.
- Genetic Analysis: Population genetics analysis revealed a 27% increase in selfing rates, with consistent trait shifts across studied populations.
Concerns and Potential Consequences
- Short-Term Benefits, Long-Term Risks: While self-pollination may offer short-term advantages, it poses long-term survival threats to plants amid environmental changes.
- Feedback Loop Risks: Reduced nectar production could lead to further declines in pollinator populations, creating a detrimental eco-evolutionary feedback loop.
- Network Degradation: The study highlights the degradation of plant-pollinator networks, as observed in previous research.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Stagflation
Mains level: Read the attached story
Central Idea
- The Reserve Bank of India (RBI) officials have reported a decreased risk of stagflation in India, now estimated at 1%, down from 3% in August
What is Stagflation?
|
Details |
| Definition |
An economic condition characterized by stagnant growth, high unemployment, and high inflation. |
| Indian context |
Fluctuating growth rates; periods of slowdown have raised concerns about stagnation. |
| Inflation Dynamics in India |
Historically high at times, often driven by rising food and fuel prices. |
| Supply Shocks |
Vulnerable to global oil price fluctuations and agricultural supply shocks (e.g., monsoon variability). |
| Past Episodes |
Elevated stagflation risks were noted during the Asian Crisis, Global Financial Crisis, taper tantrum, and COVID-19 pandemic. |
Methodology for Assessing Stagflation
- Two-Pronged Approach: RBI assessment utilized two methods: analyzing periods of low economic growth with high inflation, and employing ‘at-risk’ frameworks, namely “Inflation at Risk” (IaR) and “Growth at Risk” (GaR), using quantile regression.
- Determinants of Stagflation: Key factors identified include supply-side shocks, commodity price spikes, tighter financial conditions, and currency depreciation.
Key Risk Factors for India
- Financial Conditions and Rupee Depreciation: Financial conditions and the depreciation of the rupee against the U.S. dollar are significant risk factors for stagflation in India.
- Empirical Evidence: The integrated IaR and GaR frameworks corroborate these findings, although the impact of crude oil prices on domestic fuel prices has limited predictive power for stagflation.
- Global Concerns: Post-pandemic, higher commodity prices and the U.S. dollar’s appreciation raised global stagflation concerns.
Back2Basics: Economic Conditions: Definitions and Concepts
|
Explanation |
| Depression |
A sustained, long-term downturn in economic activity.
Characterized by significant decline in GDP, high unemployment, low spending, and reduced industrial output. |
| Deflation |
A general fall in the price level of goods and services over some time, indicating negative inflation rates. |
| Disinflation |
A decrease in the rate of inflation, i.e., a slowdown in the rate at which prices increase.
Example: Inflation rate falling from 8% to 6%. |
| Reflation |
Economic measures, such as increasing money supply or reducing taxes, aimed at stimulating the economy to reach its long-term growth trend after a downturn. |
| Skewflation |
A situation where the price of some items rises significantly while others remain stable.
Example: Seasonal rise in the price of onions while other prices are stable. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ASEAN-India Trade in Goods Agreement (AITGA)
Mains level: Not Much
Central Idea
- India seeks to modernize the ASEAN India Trade in Goods Agreement (AITGA) to reduce the significant trade deficit with ASEAN nations in February 2023 with a target to complete the revamp by 2025.
About ASEAN-India Trade in Goods Agreement (AITGA)
|
Details |
| Signing Date |
August 13, 2009, w.e.f. January 1, 2010. |
| Objectives |
Eliminate tariffs and liberalize trade in goods.
Facilitate economic integration between ASEAN and India. |
| Key Features |
Gradual reduction and eventual elimination of tariffs
Measures to facilitate trade and customs efficiency |
| Member Countries |
ASEAN Members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam and India. |
| Economic Impact |
Growth in trade between India and ASEAN countries – Diversification of trade basket. |
| Recent Developments |
Discussions on reviewing and upgrading the agreement. |
| Challenges |
Concerns over trade imbalances.
Potential impact on certain domestic industries in India. |
| Strategic Significance |
Part of India’s “Act East” policy.
Step towards broader regional economic integration. |
Need for review
- Significant Trade Partner: ASEAN countries, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia, accounted for 11.3% of India’s global trade in 2022-23.
- Existing Trade Imbalance: The current trade deficit with ASEAN stands at $43.57 billion, a substantial increase from $7.5 billion per annum when the pact was first implemented.
- Trade Statistics: In 2022-23, India’s exports to ASEAN were valued at $44 billion against imports of $87.57 billion.
- Rebalancing Trade: The primary goal is to address the disproportionate benefits that have favored ASEAN since the agreement’s implementation in 2010.
- Modernization of the Agreement: The focus is on updating the FTA to reflect current global trade dynamics and include new elements like product-specific rules and trade remedies.
Key Areas of Negotiation
- Rules of Origin (ROO): Modifications in ROO are planned to increase market access for Indian products and prevent the rerouting of goods, particularly from China, through ASEAN countries.
- Trade Remedies: A new chapter on trade remedies will aim to protect domestic industries from unfair trade practices and import surges.
- Exclusion of New Areas: The agreement will not expand to cover additional areas like labor, environment, MSMEs, or gender to avoid complicating the pact.
Challenges and Industry Perspectives
- Need for Concessions: While India seeks to balance the trade deficit, concessions may be necessary to ensure mutual benefits.
- Sectoral Focus: Industries such as chemicals, plastics, minerals, leather, textiles, and gems and jewellery are identified for potential growth in exports.
Conclusion
- Strategic Approach: India’s efforts to modernize the AITGA reflect a strategic approach to enhance trade relations while protecting domestic interests.
- Balancing Act: The challenge lies in negotiating terms that benefit both India and ASEAN members, fostering a more equitable trading environment.
- Long-Term Implications: Successful negotiations could significantly impact India’s trade dynamics, potentially reducing the trade deficit and strengthening economic ties with ASEAN nations.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Disinvestment
Mains level: Read the attached story
Central Idea
- India’s disinvestment process, primarily focusing on minority stake sales rather than full privatisation, is expected to fall short of its fiscal year 2024 target.
- The government’s cautious approach, influenced by the upcoming general elections, has led to a slowdown in the privatisation of major public sector undertakings (PSUs).
Disinvestment Performance and Targets
- Past Achievements: Over the past decade, disinvestment has generated over ₹4.20 lakh crore, but the current fiscal year’s target appears challenging.
- FY24 Target: The government set a disinvestment goal of ₹51,000 crore for FY24, a reduction from the previous year’s estimate.
- Major PSUs on Hold: Plans for the privatisation of Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI), and CONCOR have been deferred.
- Progress So Far: Approximately ₹10,049 crore, or 20% of the budgeted amount, has been raised through IPOs and OFS.
- Pipeline Projects: Strategic sales of CPSEs like SCI, NMDC Steel Ltd, BEML, HLL Lifecare, and IDBI Bank are planned but face delays due to various procedural hurdles.
Factors Influencing Disinvestment
- Political Considerations: Strategic disinvestment decisions are being influenced by the upcoming elections, leading to a cautious approach.
- Challenges in Strategic Sales: The sale process involves multiple stakeholders and complex procedures, making it a lengthy affair.
- Public and Political Resistance: Certain sectors, particularly defence and shipping, face opposition to privatisation, causing delays and policy reassessments.
- Economic Think Tank Views: Observers note a recent slowdown in PSU stake sales, attributed to regulatory processes, global economic volatility, and shifting government priorities.
Historical Context and Government Policy
- Post-2014 Strategy: Since 2014, the government has revived its disinvestment policy, focusing on stake sales and listing of PSEs on the stock market.
- Union Budget 2023-24: The disinvestment target for FY24 is the lowest in seven years, with the government yet to meet the target for 2022-23.
- Reasons for Disinvestment: The government undertakes disinvestment to reduce fiscal burdens, finance deficits, invest in development, and retire debt.
- Types of Disinvestment: The process includes minority disinvestment, majority divestment, and complete privatisation, managed by the Department of Investment and Public Asset Management (DIPAM).
Recent Disinvestment Performance
- Meeting Targets: The government has met its disinvestment targets only twice since 2014.
- Challenges in Execution: Strategic sales have been complicated by various factors, including market volatility and political opposition.
Future of Disinvestment in 2023-24
- No New Additions: The government plans to continue with the already announced privatisation of state-owned companies without adding new ones.
- Challenges and Vision: Observers suggest that disinvestment should align with the government’s long-term vision for privatisation and sectoral presence, rather than being driven solely by revenue needs.
Conclusion
- Strategic Policy Shifts: The government’s disinvestment strategy is evolving, balancing between raising revenues and managing political and public sentiments.
- Impact of Upcoming Elections: With general elections approaching, the focus on disinvestment might shift, impacting the progress and priorities of stake sales.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nematocysts
Mains level: NA
Central Idea
- Evolution has crafted unique defense mechanisms in the animal kingdom, one of which is the nematocyst.
Understanding Nematocysts
- Structural Composition: A nematocyst comprises a capsule with a coiled tubule and a toxin-filled bulbous structure.
- Rapid Deployment: Upon stimulation, the nematocyst ejects its tubule at an incredibly high acceleration, comparable to a bullet’s speed.
- Fastest Biological Mechanisms: This ejection process is among the quickest in the animal kingdom.
- Found in: Nematocysts are particularly prevalent in jellyfish, corals, sea anemones, and hydras, serving as effective tools for hunting and protection.
Role in Cnidarians’ Survival
- Cnidarians and Cnidocytes: Cnidarians, a group of animals characterized by cnidocytes (specialized cells), heavily rely on nematocysts for feeding and defense.
- Activation Process: Contact with potential prey triggers sensory structures on cnidocytes, leading to the nematocyst’s release and subsequent prey immobilization or toxin injection.
Diversity of Toxins in Nematocysts
- Variety of Effects: Nematocyst toxins can be paralytic, halting prey movement, or cytolytic, breaking down cells.
- Strategic Use: Cnidarians often employ a mix of toxins to enhance the effectiveness of their predatory and defensive actions.
- Contribution to Cnidarians’ Success: The complexity and efficiency of nematocysts play a vital role in the survival and dominance of cnidarians in aquatic habitats.
- Formidable Aquatic Predators: The presence of nematocysts makes cnidarians formidable entities in their ecosystems.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Project PRAYAS
Mains level: Read the attached story
Central Idea
- The International Organisation for Migration (IOM) introduced Project PRAYAS (Promoting Regular & Assisted Migration for Youth and Skilled Professionals) to facilitate secure and regular migration for Indian workers and students.
What is Project PRAYAS?
|
Details |
| Project Name |
Project PRAYAS |
| Introduced By |
International Organization for Migration (IOM) |
| Partnership |
Ministry of External Affairs, India |
| Objective |
To facilitate secure and regular migration for Indian workers and students |
| Key Focus |
Enhancing coordination between state and central governments
Addressing India’s growing role in international migration
Providing policy recommendations for migration governance |
| IOM’s Role |
Promoting humane and orderly migration as a United Nations agency |
| Significance |
Represents a consolidation of state-level efforts for well-managed international migration |
| Focus Areas and Activities |
Conducting comprehensive studies on migration trends
Launching awareness programs for safe and orderly migration processes |
Back2Basics: International Organisation for Migration (IOM)
|
Details |
| Establishment |
1951 |
| Initial Purpose |
To assist in the resettlement of people displaced by World War II |
| Current Role |
Providing services and advice on migration to governments and migrants, including various displaced persons |
| Type |
Intergovernmental Organization |
| Membership |
173 member states, 8 observer states |
| Headquarters |
Geneva, Switzerland |
| Key Objectives |
Promote humane and orderly migration Emergency response
Link migration with development Health and support for migrants
Facilitate managed labor migration Counter human trafficking |
| UN Relationship |
Became a related organization of the United Nations in 2016 |
| India and IOM |
India has been a member of IOM since 1992. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bab El-Mandeb
Mains level: Read the attached story
Central Idea
- The war between Israel and Hamas in October raised concerns about Hezbollah’s involvement, but the focus shifted when the Houthis in Yemen expanded the conflict to the Red Sea.
- Despite tensions, Hezbollah and Israel avoided full-scale war, with Israel concentrating on Gaza.
Houthi Involvement and Shift in Tactics
- Initial Actions: The Houthis, aligned with Iran, initially targeted Israel in solidarity with Palestinians, using drones and missiles, which were intercepted.
- Change in Strategy: Later, they shifted focus to attacking commercial ships in the Red Sea, threatening global shipping routes.
Understanding the Houthis
- Background: The Houthis, known formally as Ansar Allah, are a Shia militia group in Yemen, named after their late leaders Badr al-Din al-Houthi and Hussein al-Houthi.
- Iranian Support: They receive direct support from Iran and have significant military capabilities, including drones and ballistic missiles.
Strategic Importance of Bab el-Mandeb Strait
- Geographical Significance: The Strait of Bab el-Mandeb is a crucial maritime chokepoint, connecting the Red Sea with the Gulf of Aden and the Indian Ocean.
- Impact on Global Shipping: Houthi actions near the strait have led to a significant decrease in Red Sea traffic and increased shipping costs.
Global and Regional Consequences
- Effect on Israel: Israel’s southern port traffic, particularly in Eilat, has been severely impacted.
- Broader Trade Implications: Approximately 12% of global maritime trade passes through the strait. Disruptions here could exacerbate inflationary pressures worldwide.
- Alternative Routes: Shipping companies are rerouting around Africa, significantly increasing travel time and costs.
International Response
- US Naval Task Force: The U.S. has established a naval force to counter the Houthi threat.
- Arab World’s Stance: Many Red Sea countries, including Egypt, have not joined the U.S. task force, reflecting regional discontent with U.S. policies.
- Potential Offensive Measures: The U.S. has not ruled out bombing Houthi targets in response to continued attacks on shipping lanes.
Conclusion
- Continued Houthi Threat: The Houthis vow to persist in their actions as long as Israel’s conflict with Gaza continues.
- Challenges for Global Trade: The situation underscores the fragility of global shipping routes and the potential for regional conflicts to have far-reaching economic impacts.
- Need for Diplomatic Solutions: This complex scenario highlights the importance of diplomatic efforts to resolve regional tensions and protect vital maritime trade routes.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India's textile sector
Central Idea
- Major textile hubs in India, including Ludhiana, Surat, and Erode, are grappling with the surge in imports of man-made fibre (MMF) fabrics, impacting a sector worth about $60 billion.
- Fabric processors and weavers across these hubs express concerns over the influx of cheaper imports, primarily from China, affecting their businesses.
Impact of Imported MMF Fabrics
- Market Dominance: Imported fabrics, especially from China, are increasingly found in Indian markets, leading to unsold stocks and production cuts by local weavers.
- Price Disparity: Indian weavers face competition from cheaper imported yarns, compelling them to import materials like viscose yarn from China to remain competitive.
Statistical Overview of MMF Fabric Imports
- Doubling of Imports: In the last three years, MMF fabric imports have doubled, with a significant portion being knitted synthetic fabrics.
- Import Data: Daily imports from China increased from 325 tonnes in 2019-2020 to 887 tonnes in the April-June quarter of the current fiscal year, with a notable drop in average value per kg.
Under-Invoicing and Quality Control Issues
- Under-Invoicing Concerns: The practice of under-invoicing imported finished fabrics poses a major challenge, leading to calls for stricter customs regulations.
- Quality Control Orders (QCOs): The government’s introduction of QCOs on MMF fibres and products, requiring BIS certification, has impacted the entire value chain.
Consequences for Local Industry and Global Trade
- Operational Capacity: The downstream industry is reportedly operating at only 70% capacity due to these challenges.
- Export Decline: Exports of man-made yarn, fabrics, and made-ups have seen a year-on-year decline.
- Global MMF Trade: India’s share in global MMF trade was 2.7% in 2019, with fabrics and yarn being major export components.
Industry Perspectives and Government Policies
- Innovation Gap: Industry experts highlight a lack of innovation in MMF products in India compared to countries like China, Thailand, and Korea.
- Impact of QCOs: The introduction of QCOs, particularly at the fibre stage, is criticized for disrupting the industry, with calls for implementing quality controls at the garment stage instead.
- Challenges for MSMEs: Small and medium enterprises face financial strain due to declining orders, high prices, and increased operational costs.
- GST Issues and Financial Relief Demands
- GST Refund Delays: The introduction of GST led to higher taxes on MMF fibre and yarn, with delayed refunds causing financial burdens for weavers.
- Refund Controversy: Weavers contend that they are owed significant refunds due to the inverted duty structure, with the government potentially owing around ₹1,000 crore to the sector.
Conclusion
- Need for Strategic Measures: Addressing the challenges in India’s textile industry requires a balanced approach, considering both domestic capabilities and global market dynamics.
- Government’s Role: Effective policy measures, including rationalizing import duties and quality controls, are essential to support the industry and enhance its competitiveness.
- Future Outlook: The textile sector’s resilience and adaptability will be key in overcoming these challenges and capitalizing on potential opportunities in the global market.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Prime Meridian, Ujjain
Mains level: NA
Central Idea
- The newly elected Madhya Pradesh CM asserted that Ujjain, was the reference for world time 300 years ago, before the Prime Meridian shifted to Paris and then Greenwich.
- For UPSC aspirants, understanding these nuances is essential for a comprehensive grasp of India’s scientific heritage and its global context.
Time Measurement and Ujjain’s Role
- Ujjain’s Central Meridian: Before Greenwich’s establishment in 1884, Ujjain was the central meridian for time in India, influencing Hindu almanac calculations.
- Vedshala Observatory: The Vedshala or Government Jiwaji Observatory in Ujjain offers insights into ancient Indian timekeeping methods.
Ujjain’s Geographical and Astronomical Significance
- Surya Siddhanta’s Contributions: This 4th-century astronomical treatise positions Ujjain at the intersection of the zero meridian of longitude and the Tropic of Cancer, highlighting its global importance.
- Astronomical Landmarks: Ujjain’s location on the Tropic of Cancer, intersecting significant temples, underscores its historical and religious significance in Hindu cosmogony.
Legacy of Maharaja Sawai Jai Singh II and the Vedshala
- Observatory’s Origins: Built between 1725-1730 by Maharaja Sawai Jai Singh II, the Vedshala was inspired by the observatory in Samarkand and predates those in Jaipur, Delhi, Mathura, and Varanasi.
- Motivation for Construction: Jai Singh’s initiative to educate the country in astronomy was sparked by a debate in the Mughal court over astronomical calculations.
Ujjain’s Astronomical Heritage and Contributions
- Center for Ancient Astronomy: Ujjain was a hub for astronomical and mathematical studies, home to scholars like Varahamihira, Brahmagupta, and Bhaskaracharya.
- Vikram Samvat Calendar: King Vikramaditya’s establishment of the Vikram Samvat calendar around 58–56 B.C. further cements Ujjain’s historical importance.
Exploring the Vedshala’s Instruments and Functions
- Yantras and Their Uses: The observatory houses various instruments (yantras) for measuring time, celestial altitudes, planetary motions, and eclipses.
- Unique Instruments: The Shankhu Yantra, Samrat Yantra, Digansha Yantra, Nadi Valay Yantra, and Bhitti Yantra demonstrate the sophistication of ancient Indian astronomical tools.
- Taramandel Shows: The observatory also features a planetarium offering educational shows about celestial bodies.
Ongoing Astronomical Research and Preservation
- Renovation and Continuation of Studies: Maharaja Madhav Rao Scindia of Gwalior renovated the observatory in 1923, ensuring the continuation of astronomical research.
- Annual Ephemeris Publication: The observatory publishes an ephemeris, detailing the daily positions and movements of planets.
Conclusion
- Balancing Historical Pride and Scientific Accuracy: While appreciating Ujjain’s rich astronomical heritage, it’s crucial to distinguish between historical significance and contemporary scientific standards.
- Insights for UPSC Aspirants: Understanding Ujjain’s role in ancient timekeeping and astronomy offers UPSC aspirants a nuanced perspective on India’s scientific contributions and cultural heritage.
- Enduring Legacy: Ujjain’s astronomical legacy, exemplified by the Vedshala Observatory, continues to be a testament to India’s historical advancements in science and time measurement.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tribunals
Mains level: Read the attached story
Central Idea
- The Supreme Court clarified that tribunals, bound by their governing legislations, cannot compel the government to formulate policy.
- It emphasized the separation of powers, stating that policy-making is outside the judiciary’s domain, including quasi-judicial bodies like tribunals.
What are Tribunals?
|
Details |
| Nature |
Judicial or quasi-judicial institutions established by law |
| Purpose |
Provide faster adjudication compared to traditional courts
Offer expertise on specific subject matters |
| Functions |
Adjudicating disputes
Determining rights between parties
Making administrative decisions
Reviewing existing administrative decisions |
| Constitutional Recognition |
42nd Amendment Act, 1976 introduced Articles 323-A and 323-B in the Constitution |
| Article 323A |
Empowers Parliament to constitute administrative Tribunals for public service matters |
| Article 323B |
Allows Parliament or state legislatures to constitute tribunals for specific subjects like taxation, land reforms |
| Composition |
Comprises expert (technical) members and judicial members |
| Expert Members |
Selected from various fields, including central government departments |
| Judicial Members |
Persons with a judicial background, such as High Court judges or eligible lawyers |
| Supreme Court’s Stance |
Technical members not required if tribunal’s aim is expeditious disposal of matters |
Case in Focus: Armed Forces Tribunal (AFT) and Policy Direction
- Specific Case Reviewed: The Bench addressed whether the AFT could direct the government to create a policy for appointing the Judge Advocate General (Air).
- General Observation: It has been consistently observed that courts cannot mandate the government to enact legislation or develop a policy.
Judicial Analysis and Reasoning
- Justice Karol’s Observations: Justice Sanjay Karol noted that the AFT, with powers akin to a civil court, lacks the authority of the Supreme Court or High Courts.
- High Courts’ Limitations: Even High Courts, under Article 226 of the Constitution, cannot order the government or its departments to establish specific policies.
- Government’s Prerogative: The judgment reinforced that policy creation, especially concerning defense personnel services or their regularization, is exclusively the government’s responsibility.
Implications of the Judgment
- Tribunals’ Restricted Powers: Tribunals must operate within the confines of their governing legislation and lack the jurisdiction to influence policy formation.
- Judiciary’s Role in Policy Matters: The judgment highlights the judiciary’s limited role in policy-making, even in cases where fundamental rights might be at stake.
- Separation of Powers: This ruling underscores the principle of separation of powers, delineating the distinct functions of the legislative, executive, and judicial branches.
Conclusion
- Respecting Institutional Boundaries: The judgment serves as a reminder of the importance of respecting the boundaries and roles of different government institutions in a democratic setup.
- Broader Implications: This decision has significant implications for how tribunals and courts interact with policy-making processes, emphasizing judicial restraint and adherence to the constitutional framework.
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