1. Blaming technology for deaths by suicide is misguided: It takes the focus away from a comprehensive understanding of the issue READ MORE
2. Vishwaguru needs high HEI ranking READ MORE

1. Curbing hate speech: Need to avoid pick-and-choose action against offenders READ MORE
2. Ways of global governance: Change must come from outside the established institutional structure READ MORE
3. Justice is not delayed or denied for some READ MORE
4. RTI rules need changes to make it more effective READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Skilling of girls in non-traditional livelihoods included in ‘Beti Bachao Beti Padao’ scheme READ MORE
2. India Lebanon, Israel clinch maritime border deal READ MORE
3. Principle of seniority and next CJI Chandrachud’s ‘5+1’ collegium READ MORE
4. The lingering monsoon READ MORE
5. UNGA: India votes against Russia’s call for secret ballot on Ukraine resolution READ MORE
6. Nord Stream spews high levels of methane, likely to affect marine life READ MORE
7. PM Modi inaugurates Mahakal Lok corridor at Mahakaleshwar temple READ MORE
8. China launches first solar observatory to solve mystery of Sun’s eruptions READ MORE

Main Exam

GS Paper- 1

1. The 5 biggest threats to West Africa’s oceans — and what to do about them READ MORE
2. Blaming technology for deaths by suicide is misguided: It takes the focus away from a comprehensive understanding of the issue READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Curbing hate speech: Need to avoid pick-and-choose action against offenders READ MORE
2. Ways of global governance: Change must come from outside the established institutional structure READ MORE
3. Justice is not delayed or denied for some READ MORE
4. RTI rules need changes to make it more effective READ MORE

SOCIAL ISSUES

1. Vishwaguru needs high HEI ranking READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Urban consumers are still not confident enough: Manufacturing, service and infrastructure sectors are on the recovery path, but consumer confidence about the economy is yet to reach pre-COVID levels READ MORE
2. Solutions by the people, for the people READ MORE
3. Why NPAs are not just about bank governance READ MORE
4. Step up exports to arrest rupee’s persistent slide READ MORE

ENVIRONMENT AND ECOLOGY

1. Climate crisis: Expect more extreme heatwaves in near future READ MORE
2. Urban elites can help push urgent climate adaptation READ MORE
3. Ineffective implementation: Ban on single-use plastic is not working READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Unlike knowledge, wisdom is life-nourishing READ MORE
2. Adaptability quotient READ MORE
3. India@75 looking at 100: What India’s education system needs READ MORE

Questions for the MAIN exam

1. ‘The menace of plastic pollution cannot be mitigated without ensuring plastic-product manufacturers’ stringent compliance with the extended producer responsibility ‘. Discuss in the light of recent single-use plastic ban in India.
2. ‘The remit of election freebies could prompt a discussion around what a framework for political party regulation in India should be’. In you view, should the Supreme Court intervene in the issue to secure transparency and accountability in electoral democracy?

QUOTATIONS AND CAPTIONS

• The processes of good governance have gone astray. There is erosion of transparency, independence & accountability.
• The menace of plastic pollution cannot be mitigated without ensuring plastic-product manufacturers’ stringent compliance with the extended producer responsibility.
• Manufacturing, service and infrastructure sectors are on the recovery path, but consumer confidence about the economy is yet to reach pre-COVID levels.
• Acknowledgement of suicidal thoughts and attempts to address a host of inter-related causes and effects are necessary to design effective and proportionate policy prescriptions. While technology is certainly an agent of this complex matrix, it can neither be seen as a root cause nor as a panacea.
• Policy-making at all levels has to become more inclusive and less dominated by the powerful and the wealthy, while a paradigm shift is needed in problem solving at global and national levels.
• People are not just numbers, nor merely resources for the economy. Policymaking must become more inclusive and less dominated by the powerful and the wealthy on the top.
• Probing the links between twin balance sheet crisis and external commodity shocks could lead to a better understanding of the NPAs problem.
• Transformational leaders don’t build large organisations. They multiply leaders and enlarge movements.
• Rankings serve as a tool to measure the academic reputation of any institution. Healthy and meaningful academic contests can help any institute and its faculty to navigate toward excellence.
• Indian judiciary is best known in the world for its unique reputation of being a role model for its impartiality, fairness and independence.

50-WORD TALK

• Measures like internationalising the Indian rupee and settling trade agreements between India and other nations in rupees can curb the currency’s fall. Foreign direct investment should be encouraged in Indian industries. Besides, India has to export goods and services worth at least $2.5 trillion if it wants to make its economy reach the $5-trillion mark by 2025 since exports currently make up around 25% of the GDP.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

[WpProQuiz 351]

THE CONTEXT: December 12 marked the five-year anniversary of the Paris Agreement. The international community, including the European Union (EU) and India, gathered at the Climate Ambition Summit 2020 to celebrate and recognize our resolve in working towards a safer, more resilient world with net-zero emissions.

ABOUT PARIS AGREEMENT

• The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016.
• Its goal is to limit global warming to well below 2, preferably to 5 degrees Celsius, compared to pre-industrial levels.
• To achieve this long-term temperature goal, countries aim to reach global peaking of greenhouse gas emissions as soon as possible to achieve a climate neutral world by mid-century.
• The Paris Agreement is a landmark in the multilateral climate change process because, for the first time, a binding agreement brings all nations into a common cause to undertake ambitious efforts to combat climate change and adapt to its effects.

IMPLEMENTATION OF PARIS AGREEMENT

Implementation of the Paris Agreement requires economic and social transformation, based on the best available science. The Paris Agreement works on a 5- year cycle of increasingly ambitious climate action carried out by countries. By 2020, countries submit their plans for climate action known as nationally determined contributions (NDCs).

Nationally Determined Contributions (NDCs)

In their NDCs, countries communicate actions they will take to reduce their Greenhouse Gas emissions in order to reach the goals of the Paris Agreement. Countries also communicate in the NDCs actions they will take to build resilience to adapt to the impacts of rising temperatures.

Long-Term Strategies

To better frame the efforts towards the long-term goal, the Paris Agreement invites countries to formulate and submit by 2020 long-term low greenhouse gas emission development strategies (LT-LEDS).

LT-LEDS provide the long-term horizon to the NDCs. Unlike NDCs, they are not mandatory. Nevertheless, they place the NDCs into the context of countries’ long-term planning and development priorities, providing a vision and direction for future development.

Is the Paris agreement binding?

The legal nature of the deal–whether it will be binding–had been a hotly debated topic in the lead up to the negotiations. The agreement walks a fine line, binding in some elements like reporting requirements, while leaving other aspects of the deal—such as the setting of emissions targets for any individual country—as non-binding.

Difference between Paris Climate and Kyoto Protocol

• The Kyoto Protocol had a differentiation between developed and developing countries listed as Annex 1 countries and non-Annex 1 countries But, in the Paris agreement, there is no difference between developing and developed countries.
• The Kyoto Protocol aimed at 6 major greenhouse gases but the Paris Agreement is focused on reducing all anthropogenic greenhouse gases causing climate change.

Talanoa dialogue

• The UNFCCC Climate Change Conference (COP23) was held in Bonn, Germany and was presided over by Government of Fiji. It concluded with countries putting in place a roadmap for ‘Talanoa Dialogue’, a year-long process to assess countries’ progress on climate actions.

What is Talanoa?

• Talanoa is a traditional approach used in Fiji and the Pacific to engage in an inclusive, participatory and transparent dialogue;
• The purpose of Talanoa is to share stories, build empathy and trust;
• During the process, participants advance their knowledge through common understanding;
• It creates a platform of dialogue, which results in better decision-making for the collective good;
• By focusing on the benefits of collective action, this process will inform decision-making and move the global climate agenda forward.

The significance of Talanoa dialogue

• The goal of the Paris Agreement on climate change, as agreed at the Conference of the Parties in 2015, is to keep global temperature rise this century to well below 2 degrees Celsius above pre-industrial levels. It also calls for efforts to limit the temperature increase even further to 1.5 degrees Celsius.

The Under2 Coalition

• The Under2 Coalition is a coalition of subnational governments that aims to achieve greenhouse gases emissions mitigation. It started as a memorandum of understanding, which was signed by twelve founding jurisdictions on May 19, 2015 in Sacramento, California. Although it was originally called the Under2 MOU, it became known as the Under2 Coalition in 2017.
• As of September 2018, the list of signatories has grown to over 220 jurisdictions which combined encompasses over 1.3 billion people and 43% of the world economy.
• The intent of the memorandum signatories is for each to achieve Greenhouse gas emission reductions consistent with a trajectory of 80 to 95 percent below 1990 levels by 2050and/or achieving a per capita annual emission goal of less than 2 metric tons by 2050.
• Currently, Telangana and Chhattisgarh are signatories to this pact from India, as compared to representations from the other top emitters: 26 subnational governments in China and 24 in the U.S. Greater representation of Indian States is crucial.

FRAMEWORK OF PARIS AGREEMENT

The Paris Agreement provides a framework for financial, technical and capacity building support to those countries who need it.

Finance

The Paris Agreement reaffirms that developed countries should take the lead in providing financial assistance to countries that are less endowed and more vulnerable, while for the first time also encouraging voluntary contributions by other Parties. Climate finance is needed for mitigation, because large-scale investments are required to significantly reduce emissions. Climate finance is equally important for adaptation, as significant financial resources are needed to adapt to the adverse effects and reduce the impacts of a changing climate.

Technology

The Paris Agreement speaks of the vision of fully realizing technology development and transfer for both improving resilience to climate change and reducing GHG emissions. It establishes a technology framework to provide overarching guidance to the well-functioning Technology Mechanism. The mechanism is accelerating technology development and transfer through it’s policy and implementation arms.

Capacity-Building

Not all developing countries have sufficient capacities to deal with many of the challenges brought by climate change. As a result, the Paris Agreement places great emphasis on climate-related capacity-building for developing countries and requests all developed countries to enhance support for capacity-building actions in developing countries.

ENHANCED TRANSPARENCY FRAMEWORK (ETF)

With the Paris Agreement, countries established an enhanced transparency framework (ETF). Under ETF, starting in 2024, countries will report transparently on actions taken and progress in climate change mitigation, adaptation measures and support provided or received. It also provides for international procedures for the review of the submitted reports.

The information gathered through the ETF will feed into the Global stocktake which will assess the collective progress towards the long-term climate goals.

This will lead to recommendations for countries to set more ambitious plans in the next round.

INDIA AND PARIS AGREEMENT

India has not only achieved its targets but has exceeded them beyond expectations as per the Prime Minister. He delivered a virtual speech at the Climate Ambition Summit that India has reduced its global emissions by 21 percent compared to 2005 and is on its way to do more.

• India mentioned that it has not caused the climate change crisis and it is meeting its obligations under the Paris Climate Accord.
• It stated that the developed nations have been the highest carbon emitters and thus, were responsible for global warming.
• It mentioned that besides India, only Bhutan, the Philippines, Costa Rica, Ethiopia, Morocco and Gambia were complying with the accord.

India’s Intended Nationally Determined Contribution (INDC)

• To reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005 level.
• To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover by 2030.
• A total of 40% of the installed capacity for electricity will be from non-fossil fuel sources.

India’s effort to address Climate Change

The Government of India has launched eight Missions under the National Action Plan on Climate Change (NAPCC) for assessment of the impact and actions required to address climate change. These eight missions are:

1. National Solar Mission
2. National Mission for Enhanced Energy Efficiency
3. National Mission on Sustainable Habitat
4. National Water Mission
5. National Mission for Sustaining the Himalayan Ecosystem
6. National Mission for A Green India
7. National Mission for Sustainable Agriculture
8. National Mission on Strategic Knowledge for Climate Change

Recent developments

• India has achieved a reduction of 21% in emission intensity of its GDP between 2005 and 2014, which fulfills its pre-2020 voluntary target.
• The Renewable energy installed capacity has increased by 226% in the last 5 years and stands more than 87 GW.
• The Government has provided 80 million LPG connections in rural areas, providing them with clean cooking fuel and a healthy environment.
• More than 360 million LED bulbs have been distributed under the UJALA scheme, which has led to energy saving of about 47 billion units of electricity per year and reduction of 38 million tonnes of CO2 per year.
• It leapfrogged from Bharat Stage-IV (BS-IV) to Bharat Stage-VI (BS-VI) emission norms by April 1, 2020 which was earlier to be adopted by 2024.

FIVE YEARS AFTER PARIS AGREEMENT

All states have submitted their national contributions to mitigate and adapt to climate change. Distant hypothetical targets are being set. Seems like we are still speeding in the wrong direction or we are lagging far behind.

(1) Unclear targets and response

The world is still unclear since five years as to how the net-zero pledges will translate into shorter term targets. Few of the countries that have announced ambitious long-term goals have implemented national policies to reach them in time.

(2) Degradation isn’t stopped

Meanwhile, we continue to destroy the world’s carbon sinks, by cutting down forests – the world is still losing an area of forest the size of the UK each year, despite commitments to stop deforestation – as well as drying out peatlands and wetlands, and reducing the ocean’s capacity to absorb carbon from the air.

(3) Countries aren’t scaling up their targets

Although 151 states have indicated that they will submit stronger targets before December 31, only 13 of them, covering 2.4 per cent of global emissions, have submitted such targets. While states have been slow to update their national contributions for 2025-2030, several have announced exaggeratedly high “net zero” targets in the recent past.

WAY FORWARD:

• The Paris agreement still provides the best hope of avoiding the worst ravages of climate breakdown: the question is whether countries are prepared to back it up with action, rather than more hot air.
• Renewing the shorter term commitments is the best way ahead.
• Making promises for the 2050s-60s is one thing, but major policy changes are needed now to shift national economies on to a low-carbon footing.
• None of these (net zero) targets will be meaningful without very aggressive action in this decade. Diplomacy is inevitably a tool in global climate action.

CONCLUSION:

For many, there is a mismatch between short-term actions and long-term commitments. A credible short-term commitment with a clear pathway is the key. Not all states will be in a position to pledge net-zero targets, nor should they be expected to. All states, including India, can, however, pledge actions that are credible, accountable and fair. Our real test on climate change is on building a new domestic consensus that can address the economic and political costs associated with an internal adjustment to the prospect of a great global reset.

POLITY AND CONSTITUTION

1. CJI LALIT RECOMMENDS JUSTICE CHANDRACHUD’S NAME AS HIS SUCCESSOR

THE CONTEXT: Chief Justice of India U U Lalit recommended the second most senior judge of the Supreme Court Justice Dhananjaya Yashwant Chandrachud as his successor.

THE EXPLANATION:

• As per convention, the government writes to the outgoing CJI before his retirement and the CJI recommends the name of the most senior judge as the successor about a month before retirement.
• Once a new name is recommended, the incumbent CJI usually refrains from taking decisions on appointment of judges.

The Collegium system

• The collegium system is the way by which judges of the Supreme Court and High Courts are appointed and transferred. The collegium system is not rooted in the Constitution or a specific law promulgated by Parliament; it has evolved through judgments of the Supreme Court.
• The Supreme Court Collegium is a five-member body, which is headed by the incumbent CJI and comprises the four other senior most judges of the court at that time. A High Court collegium is led by the incumbent Chief Justice and four other senior most judges of that court. By its very nature, the composition of the collegium keeps changing.
• Judges of the higher judiciary are appointed only through the collegium system, and the government has a role only after names have been decided by the collegium. Names recommended for appointment by a High Court collegium reach the government only after approval by the CJI and the Supreme Court collegium.
• The role of the government in this entire process is limited to getting an inquiry conducted by the Intelligence Bureau (IB) if a lawyer is to be elevated as a judge in a High Court or the Supreme Court. The government can also raise objections and seek clarifications regarding the collegium’s choices, but if the collegium reiterates the same names, the government is bound to appoint them.
• Critics have pointed out that the system is non-transparent, since it does not involve any official mechanism or secretariat. It is seen as a closed-door affair with no prescribed norms regarding eligibility criteria, or even the selection procedure. There is no public knowledge of how and when a collegium meets, and how it takes its decisions. There are no official minutes of collegium proceedings.

SOCIAL ISSUES

2. ADDRESS STIGMA IN MENTAL HEALTH, SAYS LANCET COMMISSION

THE CONTEXT: On World Mental Health Day, (10^th October) the Lancet released a new report calling for radical action to end stigma and discrimination in mental health, indicating that 90% of people living with mental health conditions feel negatively impacted by stigma and discrimination.

THE EXPLANATION:

• The report was the result of the labours of the new Lancet Commission on Ending Stigma and Discrimination in Mental Health, a grouping of over 50 contributors from across the world, including people with lived experience of a mental health condition.
• According to the data, 80% of surveyed said stigma and discrimination can be worse than the condition itself. Additionally, 90% of those surveyed felt that media could play a major role in reducing stigma.
• The commission reviewed the evidence on effective interventions to reduce stigma and called for immediate action from governments, international organisations, employers, healthcare provider and media organisations, along with active contributions from people with lived experience, to work together to eliminate mental health stigma and discrimination.
• As per the commission, stigma can “cause social exclusion and disempowerment of people with mental health conditions leading to discrimination and human rights violations, including problems in accessing healthcare, challenges in securing employment, and increased likelihood of health complications leading to early death”.
• Also, experts highlighted there is a gradual reduction of stigma in the country, it continues to be a real and present problem.
• The women with a diagnosis of severe mental disorder and their family members do face more stigma which has ramifications for marriage and employment preventing social inclusion. They also made a mention of the Indian visual media that still perpetuate mental illnesses negatively, exacerbating the impact of stigma.
• For instance, it has recommended that all countries take action to decriminalise suicide, therefore reducing the stigma around suicide and leading to fewer occurrences.

INTERNATIONAL RELATIONS

3. INDIA GETS 4TH SET OF SWISS BANK ACCOUNT DETAILS: SIGNIFICANCE

THE CONTEXT: Recently,India has received the fourth set of Swiss bank account details of its nationals and organisations as part of an annual information exchange, under which Switzerland has shared particulars of nearly 34 lakh financial accounts with 101 countries.

THE EXPLANATION:

Significance of India receiving information from Switzerland

• This is the fourth tranche of information that India has received from Switzerland since the two countries entered into an Automatic Exchange Of Information (AEOI) agreement in January 2018. The first such exchange with India took place in 2019.
• In an effort to bring in transparency and restrict money laundering, the Swiss Federal Office has given a detailed account of the massive AEOI 2022 exchange exercise: the country has just concluded its exchange of information with 101 countries; with details of around 3.4 million financial accounts.
• Some countries which have been added to the Swiss AEOI list for the first time are Turkey, Peru and Nigeria. The Swiss Federal Tax Administration office has also informed that with 74 of these 101 countries, the information exchange was reciprocal.

What is the volume, nature of data?

• In 2019, prior to India receiving its first batch of banking information via the AEOI, according to sources, India would be among 73 countries that would be receiving the data and in their (India’s) case “several dispatches” would be required, giving an indication of the large volume of account holders.
• This time, the Federal Tax Administration has informed that the nature of the financial information includes the name, address, country of residence, tax identification number, information concerning the reporting financial institution, and account balance and capital information, giving an insight into the exact nature of the transmitted data.

Guidelines for exchange of such sensitive banking information

• The guidelines and parameters for the AEOI are set by the Paris-based international body, the Organisation for Economic Co-operation and Development (OECD). The annual exercise of AEOI exchange, such as the current Swiss bonanza of banking details, is strictly meant for “tax only” purposes and in India, kept in the custody of and for action by the Central Board of Direct Taxes (CBDT).
• Under the OECD’s guidelines, no details of the quantum of funds or the names of account holders are to be publicized. In 2014, the OECD developed the Common Reporting Standard (CRS) which allows every country to obtain data from Financial Institutions (FIs) and “automatically” exchange it with countries with which AEOI agreements are in order every year.

What is the scope of India’s AEOI network?

• Under the OECD umbrella of AEOI, India presently shares bulk financial and banking information with 78 countries and receives the same from 107 countries, with Switzerland known to be sharing some of the most voluminous data.
• Due primarily to the large volume of FI data coming in from now a 100 countries, the CBDT last year set up a network of Foreign Asset Investigation Units (FAIUs) in 14 of its investigation wings, to which the information of that region which has reached India via the AEOI route is transmitted in a secure manner.

VALUE ADDITION:

OPEC

• The Organisation for Economic Co-operation and Development (OECD) is a group of 37 member countries that discuss and develop economic and social policy.
• OECD members are typically democratic countries that support free-market economies.
• The stated goal of the Organisation for Economic Co-operation and Development (OECD) is to shape policies that foster prosperity, equality, opportunity and well-being for all.
• The Organisation for Economic Co-operation and Development (OECD) was established on Dec. 14, 1960, by 18 European nations, plus the United States and Canada.

4. MULTINATIONAL JATE “ANTI-TERROR EXERCISE 2022”

THE CONTEXT: Recently, Pakistan has been invited to the closing ceremony, of the ongoing Joint Anti-Terror Exercise (JATE) under the ambit of the Shanghai Cooperation Organisation (SCO) being hosted by India.

THE EXPLANATION:

• The National Security Guard (NSG) is hosting the multinational JATE “Manesar Anti-Terror 2022” under the framework of the SCO Regional Anti-Terrorist Structure (RATS), at the NSG Manesar Garrison.
• An Indian delegation had participated in the closing ceremony of the two-week-long JATE-2021 hosted by Pakistan at the National Counter Terrorism Centre, Pabbi, in Khyber Pakhtunkhwa, in September 2021.
• The exercise is aimed at exchanging expertise and best practices and build synergy between the Counter Terrorism Forces of the SCO RATS member countries to enhance capabilities for conducting anti-terrorist operations and countering other security threats collectively.

AIM OF THE EXERCISE

• “JATE is being conducted with a view to practice and master various drills and procedures involved in Counter Terrorism operations including Cordon & Search, Compound Clearance, Close Quarter Battle and medical evacuation.
• The exercise is aimed at enhancing synergy and interoperability among Special Services and Law Enforcement Agencies of Shanghai Cooperation Organisation (SCO) member countries for combating international terrorism, practice mechanisms to respond to a crisis situation and capacity building of the forces.
• RATS, headquartered in Tashkent, is a permanent organ of the SCO which serves to promote cooperation of member states against terrorism, separatism and extremism.

ECONOMIC DEVELOPMENT

5. TOKENISATION FOR CREDIT AND DEBIT CARD TRANSACTIONS

THE CONTEXT: Recently, the Reserve Bank of India’s card-on-file (CoF) tokenisation norms have kicked in, which aim at improved safety and security of card transactions.

THE EXPLANATION:

What is tokenisation?

Tokenisation refers to the replacement of actual card details with a unique alternate code called the ‘token’, which shall be unique for a combination of card, token requester, (i.e. the entity which accepts requests from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and the device.

How did India decide to carry out tokenisation?

• In September 2021, the RBI prohibited merchants from storing customer card details on their servers with effect from January 1, 2022, and mandated the adoption of card-on-file (CoF) tokenisation as an alternative.
• Following a series of representations from several industry players and digital payment platforms who anticipated disruption in online transactions from January 1, 2022, the RBI extended the implementation date of card-on-file (CoF) tokenisation norms by another six months to June 30, 2022.
• The June 2022 deadline was further extended as the RBI felt that although considerable progress had been made in terms of token creation and transaction processing based on these tokens had also commenced, the concept was yet to gain traction across all categories of merchants. Subsequently, the deadline was extended till September 30, 2022.

SCIENCE AND TECHNOLOGY

6.‘SPACE ECONOMY MAY TOUCH $13 BN BY 2025’

THE CONTEXT: According to a joint report prepared by EY and the Indian Space Association (ISpA), an apex industry association of space and satellite companies in the country stated Indian space economy is set to reach $13 billion by 2025.

THE EXPLANATION:

• The report also said the space launch segment would grow fastest at a CAGR of 13% spurred by growing private participation, latest technology adoption and low cost of launch services.
• On the country’s satellite manufacturing opportunity, it said in 2020 it was $2.1 billion and this would reach $3.2 billion by 2025.
• Launch services, which is the most in-demand commercial service for the global space industry, is expected to see a rise in India with the advent of private companies such as Skyroot Aerospace, Agnikul Cosmos and Bellatrix Aerospace. These services, which will seek to emulate the successes seen by private global entities such as USA’s SpaceX and Rocket Labs, France-based Arianespace and even India’s ISRO, hope to capture a significant share of an increasing demand for launching satellites into orbit.
• Also, by 2025, satellite manufacturing would be the second fastest-growing segment in the Indian space economy. Space parks that are coming up across the country would give a fillip to companies operating across the space value chain, especially manufacturing, found the study.

VALUE ADDITION:

1. The Indian space sector has been globally recognized for building cost-effective satellites, launching lunar probes and taking foreign satellites to space. The global space economy is estimated at ~US$ 423 billion. Currently, India constitutes 2-3% of the global space economy.
2. From 1999 till December 2021, a total of 342 foreign satellites from 34 countries have been successfully launched on board Indian Polar satellite Launch Vehicle (PSLV) on a commercial basis.
3. India is the sixth-largest player in the industry internationally having 3.6% of the world’s space-tech companies (as of 2021). U.S. holds the leader’s spot housing 56.4% of all companies in the space-tech ecosystem. Other major players include U.K. (6.5%), Canada (5.3%), China (4.7%) and Germany (4.1%).
4. India’s space programme has attracted global attention for its accelerated rate of development, with a critical appreciation for the following extraordinary explorations:

• Mars Orbiter Mission (MOM) or Mangalyaan
• Chandrayaan-2 Mission(India’s 2nd mission to the moon)
• AstroSat Mission (India’s 1st observatory mission for astronomy)
• Aditya-L1 Mission (India’s 1st solar observatory in space)

5. ISRO has forged a strong relationship with many industrial enterprises, both in the public and private sector, to implement its space projects.
6. With the ISRO undertaking the development of cutting-edge technologies and interplanetary exploratory missions, there is a tremendous scope in contributions to the realization of operational missions and new areas such as satellite navigation.

PRELIMS PRACTICE QUESTION

QUESTION OF THE DAY

Q1. India is hosting ‘Manesar Anti-Terror 2022’ under the ambit of –

a) SCO

b) SAARC

c) ASEAN

d) QUAD

Answer: A

Explanation:

• India is currently hosting the multilateral anti-terror exercise ‘Manesar Anti-terror 2022’ under the ambit of the Shanghai Cooperation Organisation (SCO) Regional Anti-Terrorism Structure scheduled from October 8 to 13.

1. Awareness of impermanence brings us wisdom READ MORE
2. Virtue of perfection READ MORE
3. Hate speeches are sullying the country’s atmosphere, says Supreme Court READ MORE

1. How Climate Change is Shifting the Water Cycle READ MORE
2. A million-year-old marine DNA can reveal how climate change will affect Antarctica READ MORE

1. Iranian women deserve global support READ MORE
2. Much Progressive Tribal Culture in India, but alas, largely Ignored! READ MORE
3. Has India eliminated extreme poverty? READ MORE

1. Too few rules: Without some codification, SC collegium will keep running into problems in selecting judges READ MORE
2. Ushering in clarity in collegium discussions READ MORE
3. Ranting against HEI Rankings: The higher education institution (HEI) ranking is flawed as it is skewed to suit the western institutions and does not convey the right picture READ MORE
4. Decriminalisation bill can end Inspector Raj and create jobs, wealth and large enterprises READ MORE
5. Why the messiness of the Congress election offers a glimmer of hope for Indian democracy READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Indian space economy set to grow $13 bn by 2025 READ MORE
2. Pakistan to join closing ceremony of SCO anti-terror exercise hosted by India READ MORE
3. Russia’s continued defiance of international law READ MORE
4. Two judges objected to proposal over judges’ names, Sept 30 meeting discharged: Supreme Court Collegium READ MORE
5. 2022 Economics Nobel awarded to trio for improving ability to avoid financial crises READ MORE
6. A million-year-old marine DNA can reveal how climate change will affect Antarctica READ MORE
7. Year-long study confirms presence of 8 leopards in Delhi’s Asola Sanctuary READ MORE
8. Rajasthan International Folk Festival returns to soothe souls scarred by COVID blues READ MORE

Main Exam

GS Paper- 1

1. Iranian women deserve global support READ MORE
2. Much Progressive Tribal Culture in India, but alas, largely Ignored! READ MORE
3. How Climate Change is Shifting the Water Cycle READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Too few rules: Without some codification, SC collegium will keep running into problems in selecting judges READ MORE
2. Ushering in clarity in collegium discussions READ MORE
3. Ranting against HEI Rankings: The higher education institution (HEI) ranking is flawed as it is skewed to suit the western institutions and does not convey the right picture READ MORE
4. Decriminalisation bill can end Inspector Raj and create jobs, wealth and large enterprises READ MORE
5. Why the messiness of the Congress election offers a glimmer of hope for Indian democracy READ MORE

SOCIAL ISSUES

1. Has India eliminated extreme poverty? READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Explain Speaking: How China reduced poverty; lessons for India READ MORE
2. Building resilient mineral supply chains: India must act immediately and decisively to mitigate these risks to its energy security READ MORE
3. Other economic concerns may trump inflation worries READ MORE
4. A robust credit rating system is key for India READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Awareness of impermanence brings us wisdom READ MORE
2. Virtue of perfection READ MORE
3. Hate speeches are sullying the country’s atmosphere, says Supreme Court READ MORE

Questions for the MAIN exam

1. ‘The remit of election freebies could prompt a discussion around what a framework for political party regulation in India should be’. In you view, should the Supreme Court intervene in the issue to secure transparency and accountability in electoral democracy?
2. ‘Tribals are no more a geographical and homogenous entity but segregated and dispersed’. In light of this statement, discuss how the setup of industries in tribal areas impacted their lives.

QUOTATIONS AND CAPTIONS

• Your lives are fading in the shadows of time, but your legacy lives on.
• The remit of election freebies could, potentially, prompt a discussion around what a framework for political party regulation in India can be, in order to secure transparency and accountability in electoral democracy.
• Without being judgmental about the merits and efficacy of tribal culture in the so-called modern world, the urban drift of the tribals is increasingly painfully observed.
• Tribals are no more a geographical and homogenous entity but segregated and dispersed.
• The desire for modern social equality is manifesting among tribals reducing the status of a clan chief and a sacerdotal head.
• The higher education institution (HEI) ranking is flawed as it is skewed to suit the western institutions and does not convey the right picture.
• Clearly, internal reform in the Muslim society has a long way to go. It can succeed only when Muslims themselves start demanding a change.
• Transparency and clarity are important goals for the Supreme Court that has battled some criticism in the past over its relatively opaque deliberations.

50-WORD TALK

• IAF creating a new branch to unify all weapon system operations is significant reform that’ll help make the force future-ready. But what IAF needs more is new fighters. There is a critical shortage of fighters and it’d be prudent for the government to approve the Multi-Role Combat Aircraft programme soon.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

THE CONTEXT: On February 11, 2022,the Securities and Exchange Board of India (SEBI) passed an order involving the country’s largest stock exchange-The National Stock Exchange. Apart from highlighting the issue of corporate misgovernance, the whole episode has raised questions on the role of the capital market regulator. In this article, we examine the issue in detail.

ALL YOU NEED TO KNOW ABOUT THE NSE IMBROGLIO

THE SEBI FINDINGS

• The National Stock Exchange (NSE)’s former Managing Director (MD) and Chief Executive Officer (CEO) is penalized for misusing her office for:
• making appointments,
• concealing confidential information pertaining to operations of the exchange,
• and making incorrect and misleading submissions to the Securities and Exchange Board of India (SEBI).
• The regulator states that her unknown spiritual guru influenced her decision making.
• The former NSE Chief is also being examined for a case registered in May 2018 pertaining to alleged abuse of a trading software of the exchange and the SEBI order comes in this backdrop (Read Ahead).

IMPROPER PERSONNEL MANAGEMENT

• The former NSE head appointed a person as the Chief Strategic Officer (CSO) of the exchange despite the latter not having any exposure to capital markets.
• SEBI notes that the exchange had not advertised any vacancy pertaining to the appointment of CSO
• SEBI notes that his previous work experience was not relevant to his new consultancy position at NSE. With recurrent appraisals and performance ratings, his compensation rose to ₹4.21 crore within two years(1.8 crore when he joined)

DIVULGING CONFIDENTIAL INFORMATION

• The regulator found the former NSE Chief guilty of divulging confidential information pertaining to the NSE’s organizational appointments, financial results and projections, dividend pay-out ratio and board meeting consultations to her unknown spiritual guru.

FAILURE OF THE NSE BOARD

• The NSE Board was found guilty of not informing the market’s regulator and opting to keep it under wraps.

PENALTIES IMPOSED

• The former NSE Chief has been forbidden from dealing in stocks, etc. for a period of three years, alongside a penalty of ₹3 crore.
• The erstwhile CSO has been restrained from associating with any market infrastructure institution or an intermediary for three years. He would also have to pay a penalty of ₹2 crore.
• NSE has been ordered not to launch any new product for the next six months.

AN ANALYSIS OF THE NSE SCAM?

BLOW TO CAPITAL MARKETS

• The NSE is a Market Infrastructure Institution that provides facilities for trading stocks and other products in the capital market.
• The scam has sent alarm bells to the investors and trading community and even has the potential to undermine the economic security of the nation apart from hugely denting investors’ confidence.
• The government has already indicated that it will initiate measures to sustain investors’ confidence in the Indian capital market.

POOR CORPORATE GOVERNANCE

• The approach by the Board of NSE amounted to a cover-up of the entire episode so that no outsider, including the regulator, would ever come to know.
• The public interest and shareholder directors collectively decided to not document the board discussion with respect to the irregularities of the management, thereby abdicating their primary responsibilities.
• Instead of sacking her, the Board allowed her to resign with respectable compensation and buried the matter, reflecting the complete collapse of corporate governance in NSE.

REWARDING MALFEASANCE

• The entire Board’s complicity is further indicated by the fact that, despite being aware that the MD-cum-CEO was divulging confidential information of the NSE to an anonymous individual and had recruited and excessively rewarded another individual, the Board allowed her to resign on December 2, 2016.
• For good measure, the Board placed on record her “sterling contribution and approved a 44-crore severance package!

CONDUCT OF DIRECTORS OF GOVT COMPANIES/BANKS

• Senior executives of the LIC, the SBI group and the Stock Holding Corporations etc, are part of the BoD who are delegated to protect the interests of their companies. But they have not raised any alarm but went along with the questionable approach of the management.
• Their role highlights a troubling issue that when they are on the Board of prominent private sector companies, they apparently abandon their own companies.
• And it also seems they are ready to align themselves and take instructions from the executive management of the private sector companies. It raises questions for the public about how the parent companies themselves are managed.

REGULATOR’S CONDUCT

• The SEBI’s order on the NSE saga and the delay of six years in concluding the probe raises troubling questions on the regulator’s role (Read Ahead)

A SERIES OF SCAMS IN NSE

• The current scam comes in the backdrop of a progressing CBI led investigation into the co-location scam and other glaring irregularities in NSEs.
• This point out that the NSE’s financial success and near-monopoly has clouded the judgement of the NSE leadership or they believe to be above the rule of law.

WHAT IS THE CO-LOCATION SCAM?

WHAT ARE CO-LOCATION FACILITIES?

• There are dedicated spaces in the exchange building, right next to the exchange servers, where high-frequency and algo traders can place their systems or programs.

BENEFITS OF THESE FACILITIES

• With the co-location facilities being extremely close to stock exchange servers, traders here have an advantage over other traders due to the improvement in latency (time taken for order execution).
• But the co-location is mainly used only by institutional investors and brokers for their proprietary trader. Retail investors have a negligible presence here.

UNFAIR ACCESS TO SERVERS

• The scam in NSE’s co-location facility took place almost a decade ago. It was alleged that one of the trading members, OPG Securities, was provided unfair access between 2012 and 2014 that enabled him to log in first to the server and get the data before others in the co-location facility.
• It was alleged that the owner and promoter of said private company abused the server architecture of NSE in conspiracy with unknown officials of NSE, SEBI etc.
• This preferential access allowed the algo trades of this member to be ahead of others in the order execution.

ROLE OF WHISTLEBLOWER AND MEDIA

• The scam came to light due to a whistle-blower’s complaint to SEBI in 2015, in which the entire modus operandi of the people gaming the system was laid out.
• When Money life(a media outlet) exposed the scam, the NSE management adopted a high-handed attitude, slapping a ₹100 crore defamation suit against Money life.
• The matter moved to Bombay High Court, which came down hard on NSE and dismissed its suit. Further, NSE was told to pay ₹50 lakh as the penalty for its arrogant attitude in responding to the media.

EXTENT OF LOSS

• The point to note is that there is no way of proving any loss to any investors or traders due to this scam. The SEBI order of 2019 directed OPG Securities and its directors to disgorge unfair gains of ₹15.7 core with the interest of 12 per cent from April 7, 2014, as a notional loss.

PENALTY ON NSE

• In 2016, SEBI asked NSE to carry out a forensic audit of its systems and deposit the entire revenue from its co-location facilities into an escrow account. Deloitte was tasked with the job of conducting a forensic audit of NSE’s systems.
• In 2019, SEBI passed its order on the issue, asking NSE to pay ₹625 crore with an interest of 12 per cent and also barred NSE from raising money from stock market for six months.

CORRECTIVE MEASURES

• NSE has changed its order execution protocol in the co-location facility to Multicast TBT from April 2014, thus plugging the loophole that allowed some to game the system.

THE SECURITIES AND EXCHANGE BOARD OF INDIA: AN OVERVIEW

CONSTITUTION OF SEBI

• The Securities and Exchange Board of India was constituted as a non-statutory body on April 12, 1988, through a resolution of the Government of India.
• The Securities and Exchange Board of India was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.

PROTECTIVE FUNCTION OF SEBI

• Checking price rigging
• Prevent insider trading
• Promote fair practices
• Create awareness among investors
• Prohibit fraudulent and unfair trade practices

REGULATORY FUNCTION OF SEBI

• Designing guidelines and code of conduct for the proper functioning of financial intermediaries and corporate.
• Regulation of takeover of companies
• Conducting inquiries and audits of exchanges
• Registration of brokers, sub-brokers, merchant bankers etc.
• Levying of fees
• Performing and exercising powers
• Register and regulate credit rating agency

DEVELOPMENT FUNCTION OF SEBI

• Imparting training to intermediaries
• Promotion of fair trading and reduction of malpractices
• Carry out research work
• Encouraging self-regulating organizations
• Buy-sell mutual funds directly from AMC through a broker

OBJECTIVES OF SEBI

• Protection to the investors: The primary objective of SEBI is to protect the interest of people in the stock market and provide a healthy environment for them.
• Prevention of malpractices: This was the reason why SEBI was formed. Among the main objectives, preventing malpractices is one of them.
• Fair and proper functioning: SEBI is responsible for the orderly functioning of the capital markets and keeps a close check over the activities of the financial intermediaries such as brokers, sub-brokers, etc.

POWERS OF SEBI

SEBI is a quasi-legislative, quasi-judicial and quasi-executive body.

• SEBI has the power to regulate and approve any laws related to functions in the stock exchanges.
• It has the powers to access the books of records and accounts for all the stock exchanges and it can arrange for periodical checks and returns into the workings of the stock exchanges.
• It can also conduct hearings and pass judgments if there are any malpractices detected on the stock exchanges.
• When it comes to the treatment of companies, it has the power to get companies listed and de-listed from any stock exchange in the country.
• It has the power to completely regulate all aspects of insider trading and announce penalties and expulsions if a company is caught doing something unethical.

GOVERNANCE OF SEBI

The SEBI Board consist of nine members-

• One Chairman appointed by the Government of India
• Two members who are officers from Union Finance Ministry
• One member from the Reserve Bank of India
• Five members appointed by the Union Government of India

ENFORCEMENT OF LAWS

• SEBI enforces provisions of the SEBI Act, the Depositories Act 1996, the Securities Contracts (Regulation) Act, 1956, among others.
• A Securities Appellate Tribunal established under section 15-K of the Securities and Exchange Board of India Act hears appeal from the orders of SEBI which can be challenged in the SC only.

A QUESTION MARK ON SEBI’S REGULATORY ROLE

INEXPLICABLE DELAY

• Though SEBI began investigations in 2016, it has taken six years to arrive at this order. However, SEBI’s order raises more questions than it answers as it has not taken the issue into a logical conclusion.

DILUTION OF OFFENCE

• The order passed by SEBI’s whole-time member contains no provision for conducting any investigation into the possible criminal aspects of the then NSE Chief’s conduct.
   It appears that SEBI sees her criminal offence of sharing NSE’s internal confidential information with an unknown person as indiscretion.
   But converting a grave criminal offence into a regulatory indiscretion may set a dangerous precedent for the entire capital market ecosystem.

POOR CAPACITY OF SEBI

• Multiple complaints were lodged in SEBI against the then NSE MD & CEO, which led SEBI to investigate her case.
   If SEBI lacked the capability or capacity to take the investigation further, it should have sought the assistance of other investigating agencies.
• The NSE Board chairman, upon discovering that Chitra was sharing information regarding NSE with her Himalayan Yogi, apprised the NSE Board members in a closed-door meeting. And that information was too sensitive to be even recorded in minutes of the board meeting.

NO FEAR FOR REGULATOR

• NSE had knowledge that she shared sensitive information with the alleged yogi and NSE Board had concealed this information from SEBI Long after she had resigned, and only when SEBI probed, NSE directed Ernst & Young to figure out the identity the alleged Yogi.
   The whole episode reflects poorly on the status and respect the SEBI commands or put in other words; the regulated seems to have scant regard for the regulator and seems to believe that the system can be gamed and they will never get caught.

LOST OPPORTUNITY FOR REFORMS

• SEBI missed an opportunity to make an example of the CMD’s case as a warning to rogue managers. However, the meagre penalty meted out by SEBI indicates the regulator is as keen as NSE to close the case rather than address the ethical and legal cracks within the system. Penalty imposed on her is ₹3 crore – less than 7% of her severance package of ₹44 crore.

SEBI’S FAILURE TO UPHOLD NATIONAL INTEREST

• By relegating this case to a mere issue of breach of compliance, SEBI has effectively turned a possible criminal offence into a civil case. This case will embolden more who may now find it easier to abuse their official positions to compromise their own company’s integrity or hurt national interest.

ABDICATION OF AUTHORITY

• Despite being armed with exceptional powers among financial regulators to summon market participants and to search and seize evidence, SEBI failed to show the intent to get to the bottom of the scam while the trail was still hot.

REVITALIZING THE REGULATOR AND REFORMING THE NSE: THE WAY FORWARD

SCALE UP THE RESOURCE BASE

• SEBI as a regulator has to scrutinize millions of transactions done almost every minute in the stock market and that by itself makes its task herculean. The problem is compounded by the need to act swiftly, and naturally, there are limitations.
   Hence, the resource base of SEBI, especially human infrastructure, needs to be scaled up so also its technological capability through AI, etc.

FAST TRACK REFORMS IN NSE

• A leading stock exchange like NSE is a systemically important institution as it serves an economic function and is the symbol of the free market. Any disruption in the NSE has a repercussion on the economy and the country.
   The NSE leadership needs to put their house in order by upholding the laws of the land and also by holding accountability of the management to the Board, which also need to be accountable to the public.
   Processes and practices currently in place at NSE need to be revisited so that such an event doesn’t re-occur at such an important market infrastructure institution.

ACTIONS BY SEBI

• SEBI has also instituted various changes in the governance of market infrastructure institutions (MIIs), including board committee structures and oversights, the tenor of management, accountability for lapses at MIIs etc., which can strengthen the control environment.

FULFILLING SEBI’S MANDATE

• SEBI has been tasked with preserving the integrity of the capital market and institutionalizing good governance in the stock market ecosystem.
   For the sake of millions who trust SEBI to preserve the integrity of the Indian capital market, the regulator must fix the systemic deficiencies in Indian exchange.
   It must not be seen as favouring or taking a soft approach to matters of regulatory violation, especially by powerful players.

EXPECTATION FROM THE NEW SEBI CHIEF

• Regulating the stock exchanges in an independent and efficient manner, especially when doubts have risen regarding the functioning of the NSE, should be high on the list of tasks for the newly appointed chairperson of SEBI.

ROLE OF PMO AND OTHERS

• The SEBI order itself seems incomplete and there seems to be something more than what meets the eye. This could require further investigation by other agencies, and the Finance Ministry and the Prime Minister’s Office needs to act expeditiously.
   The CBI investigation into this scam also need to be fast-tracked and should be done in a professional manner to unearth the truth and to prosecute and punish the guilty.

REGULATING THE REGULATOR

• The SEBI order has done more damage to its own credibility and many questions have remained unanswered. Thus, a thorough inquiry into the investigation conducted by SEBI by independent agencies needs to be undertaken to find out if any extraneous considerations were involved in the manner of investigation or its findings.
   This does not in anyway will deem to be an encroachment into the regulator’s autonomy but will be a step towards improving regulatory quality.
   Additionally, a Regulatory Impact Assessment need to be conducted to assess the functioning of SEBI and the Parliament’s control over it need to be strengthened through standing committee oversight, periodic reports, etc.

RESTRUCTURING THE BOARD OF NSE

• Persons occupying key management positions at important institutions, even if professionals, should be rotated at reasonable intervals.
• Allowing an individual to turn into a permanent fixture as CEO or MD is a bad idea. It is improper for an outgoing CEO/MD to continue on the Board.
• And it is worse if this happens when the ex-CEO’s deputy assumes charge as the new CEO. Not only can this create situations of nexus, but it can also tie down the successor from initiating a clean-up of legacy structures.

WHISTLEBLOWER PROTECTION

• As it was a whistle-blower letter that alerted SEBI to the irregularities at NSE, MIIs must be asked to put in place well-defined employee whistleblower mechanisms, where complaints can be lodged directly with the concerned.

1. The identity of the whistle-blower must be strictly protected to prevent vindictive action.

PROFESSIONAL CONDUCT OF THE GOVT COMPANY/BANK REPRESENTATIVES

• The LIC is coming to the market for its initial public offering, and prospective shareholders and policyholders have a right to demand an explanation from LIC on the unprofessional conduct of its representatives on NSE in this period.
• Similarly, shareholders of SBI also should demand an explanation from SBI on the conduct of its officers when deputed as directors in other companies.
• The govt should take note of the negligence/irresponsibility of these members and stringent actions need to be taken against them if found to be complicit.

THE CONCLUSION: Despite the capture of power by a few individuals and the governance infractions they indulged in, few can dispute that the National Stock Exchange (NSE) has served Indian financial markets extremely well in the three decades of its existence. Its state-of-the-art electronic platform and reliable trading and settlement systems have ensured that there were no systemic failures through the worst of upheavals. It is therefore critical for the government and the regulator to get to work on fixing the loopholes in the governance structures at the NSE so that such infractions don’t recur. Clearly, the regulator needs to introspect on its actions both in the co-location and ‘yogi’ scams and learn from the mistakes.

[WpProQuiz 350]

INTERNATIONAL RELATIONS

1.WHAT IS VIRTUAL WATER TRADE?

THE CONTEXT: Recently, India banned the exports of broken rice and imposed a 20 per cent duty on the exports of various grades of rice amid high cereal inflation and uncertainties with respect to domestic supply.
THE EXPLANATION:
• The world rice market is thin, given that 90 per cent of production is consumed domestically. As a result, any small change in exports and imports has an enormous impact on prices, especially if it leads to panic buying of food grains by rich countries.
• While the actual impact of the export restriction policy on domestic prices is a matter of empirical scrutiny, and the government has intended to regulate domestic prices and safeguard food security, frequent changes in export policies undoubtedly have long-term ramifications.
• India exports rice to more than 130 countries, constituting around 40 per cent of the global rice trade. The decision to curb rice exports has, unfortunately, been taken when global food prices are already rising. The export uncertainties will affect the credibility of Indian exporters, create a disincentive for future exports, and will enable buyers to shift towards other major rice-exporting countries.
• In India, around 49 per cent of rice cultivation depends on groundwater, which is depleting rapidly. As per the latest data available from the Food and Agriculture Organisation (FAO), agricultural water withdrawal as a percentage of total available renewable water resources has increased from 26.7 per cent in 1993 to 36 per cent in 2022. Similarly, the total per capita renewable water resources have also declined from 1,909 cubic meters to 1,412 cubic meters during this period.
• The water-intensive nature of rice cultivation, along with frequent export restrictions will adversely affect the long-run sustainability of rice production. Further, India’s export restrictions will adversely affect several low-income and low-middle-income countries like Bangladesh, Senegal, Nepal and Benin, which are among the largest importers of Indian rice.

VIRTUAL WATER TRADE (VWT)
• Rice exports are leading to an indirect export of water to other countries — a phenomenon known as virtual water trade (VWT). The relative per capita water availability in India is lower than a majority of its major importing countries. The other major exporters of rice, such as Thailand and Vietnam, also have better per capita water availability in comparison to India. Out of 133 countries in which India has positive net rice exports, only 39 countries have relatively lower per capita renewable water resources. Out of these 39 countries, 12 countries are high-income countries with the ability to buy food at a higher price.
• Though Minimum Support Prices (MSPs) are announced for a large number of crops, India’s food security policies, especially how they are implemented, favour mainly rice and wheat. Furthermore, procurement is skewed towards selected northern states such as Punjab and Haryana where water availability is lower than in several other states.
• India’s rice yield is also lower than the world average. India’s yield is better than Thailand and Pakistan but worse than Vietnam, China and the US. The cost of cultivation in India is also increasing, and hence there will be a need for a higher MSP to make production remunerative. This will exacerbate the pressure to re-think its price-support-backed food security mechanism.

VALUE ADDITION: MAJOR RICE PRODUCING STATES IN INDIA
As of 2020-21, the top 3 rice-producing states of India are:
1. West Bengal
2. Uttar Pradesh
3. Punjab
Around 36% of India’s total rice production is from these 3 states. West Bengal contributed 13.62% of the total rice produced in India. Uttar Pradesh contributed 12.81% of the total rice produced in India. Punjab accounted for 9.96% of the total rice produced in India.
Rice is a Kharif crop. Rice requires an annual rainfall of more than 100 cm. It requires high humidity and high temperature. The required temperature is more than 25 degrees celsius.

ECONOMIC DEVELOPMENTS

2. PILOT LAUNCH OF E-RUPEE FOR SPECIFIC USE CASES: WHAT IS THE RBI’S PLAN

THE CONTEXT: Recently, the Reserve Bank of India (RBI) indicated that it will soon commence limited pilot launches of e-rupee (e`), or Central Bank Digital Currency (CBDC) or digital rupee, for specific use cases.
THE EXPLANATION:
It has hinted at two broad categories for the use of e-rupee — retail and wholesale — taking the payment system in the country to a new level where the common people and businesses will be able to use the digital currency seamlessly for various transactions.

What’s RBI’s plan?
• The central bank said that the development of CBDC could provide the public a risk-free virtual currency that will give them legitimate benefits without the risks of dealing in private virtual currencies.
• The approach for issuance of CBDC will be governed by two basic considerations — to create a digital rupee that is as close as possible to a paper currency and to manage the process of introducing digital rupee in a seamless manner. The central bank also feels that it is desirable for CBDCs to have offline capabilities to make it a more attractive and accessible medium of payment for a wide category of users.
• E-rupee is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different. It can be accepted as a medium of payment, legal tender and a safe store of value. The digital rupee would appear as liability on a central bank’s balance sheet.

What are the types of e-rupee?
• Based on the usage and the functions performed by the digital rupee and considering the different levels of accessibility, CBDC can be demarcated into two broad categories — general purpose (retail) (CBDC-R) and wholesale (CBDC-W), the RBI’s concept note says.
• Retail CBDC is an electronic version of cash primarily meant for retail transactions. It will be potentially available for use by all — private sector, non-financial consumers and businesses — and can provide access to safe money for payment and settlement as it is a direct liability of the central bank.
• However, the RBI has not explained how e-rupee can be used in merchant transactions in the retail trade.

What are the forms of CBDC?
• The central bank says e-rupee, or CBDC, can be structured as token-based or account-based. A token-based CBDC would be a bearer instrument like banknotes, meaning whosoever holds the tokens at a given point in time would be presumed to own them. In a token-based CBDC, the person receiving a token will verify that his ownership of the token is genuine.
• A token-based CBDC is viewed as a preferred mode for CBDC-R as it would be closer to physical cash.
• An account-based system would require maintenance of record of balances and transactions of all holders of the CBDC and indicate the ownership of the monetary balances. In this case, an intermediary will verify the identity of an account holder. This system can be considered for CBDC-W.

What’s the model for issuance?
There are two models for issuance and management of CBDCs under the RBI’s consideration — direct model (single tier model) and indirect model (two-tier model). In the direct model, the central bank will be responsible for managing all aspects of the digital rupee system such as issuance, account-keeping and transaction verification.

VALUE ADDITION:
What is Fiat Currency?
• Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.
• The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it as is the case for commodity money.
• Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies.

Fiat Money vs Legal Tender
• Fiat money has no intrinsic value, while legal tender is any currency declared legal by a government.
• Governments can issue fiat currency and make it legal tender by setting it as the standard for debt repayment.
• The benefit of fiat money is that it gives central banks greater control over the economy, but governments can print too much money and create hyperinflation.
• The U.S. dollar , Indian Rupee etc are both fiat money and legal tender.

3. THE NOBEL PRIZE IN ECONOMICS: BERNANKE, DIAMOND, DYBVIG

THE CONTEXT: According to Royal Swedish Academy of Sciences, Ben Bernanke, Douglas Diamond and Philip Dybvig won the 2022 Nobel Economics Prize “for research on banks and financial crises”.
THE EXPLANATION:
• The Economics Prize has gone to the three individuals for their role in research related to how banks function. “Modern banking research clarifies why we have banks, how to make them less vulnerable in crises and how bank collapses exacerbate financial crises.
• The foundations of this research were laid by Ben Bernanke, Douglas Diamond and Philip Dybvig in the early 1980s. Their analyses have been of great practical importance in regulating financial markets and dealing with financial crises.
It also noted, “Later, when the pandemic hit in 2020, significant measures were taken to avoid a global financial crisis. The laureates’ insights have played an important role in ensuring these latter crises did not develop into new depressions with devastating consequences for society.” Here is the role each of them played in the development of this research.
Ben S. Bernanke
According to sources, the research laid the foundation of some crucial questions on banks: “If banking collapses can cause so much damage, could we manage without banks? Must banks be so unstable and, if so, why? How can society improve the stability of the banking system? Why do the consequences of a banking crisis last so long? And, if banks fail, why can’t new ones immediately be established so the economy quickly gets back on its feet?”
Douglas W. Diamond and Philip H. Dybvig
• Both Diamond and Dybvig worked together to develop theoretical models explaining why banks exist, how their role in society makes them vulnerable to rumours about their impending collapse, and how society can lessen this vulnerability. These insights “form the foundation of modern bank regulation”.
• The model captures the central mechanisms of banking, as well as its weaknesses. It is based upon households saving some of their income, as well as needing to be able to withdraw their money when they wish. That this does not happen at the same time for every household allows for money to be invested into projects that need financing. They argue, therefore, that banks emerge as natural intermediaries that help ease liquidity.
• But with massive financial crises that have been witnessed in history, particularly in the US, it is often discussed how banks need to be more careful about assessing the loans they give out, or how bailing out banks in crisis.

INDIAN AGRICULTURE

4. WHY INDIA’S AGRI PRODUCTION STATS NEED A GROUND REALITY CHECK

THE CONTEXT: According to the National Statistical Office’s (NSO) household consumer expenditure (HCE) survey for 2011-12, the monthly per capita consumption of milk was 4.33 litres in rural India and 5.42 litres in urban India.
THE EXPLANATION:
• Taking an average of 5 litres (5.15 kg; 1 litre of milk = 1.03 kg), this translates into an annual consumption of nearly 75 million tonnes (mt) for a population of 1,210.85 million as per the 2011 Census.
• This figure includes only milk consumed by households — directly and as curd, butter, ghee, paneer, etc. at home. It excludes milk consumed by businesses — tea shops, hotels, and ice-cream, sweetmeat, chocolate and biscuit makers. If this milk is assumed to be 25% over and above that consumed by households, it adds up to about 94 mt — or a daily per capita availability of 212 gm.

What production data show?
• Going by Department of Animal Husbandry & Dairying (DAHD) statistics, India’s milk production in 2011-12 was 127.9 mt with a daily per capita availability of 289 gm. These were 210 mt and 427 gm respectively in 2020-21.
• Unfortunately, there is no published HCE survey data after 2011-12. In all likelihood, the gap between the NSO’s consumption-based estimates and the DAHD’s production numbers would only have widened.

• Between 2013-14 and 2020-21, India’s milk production grew at an average 6.2% a year. (Table) But this isn’t reflected in the marketing of liquid milk by dairy cooperatives, which grew by just over 3% annually in volume terms during this period.
• In the private sector, growth in the average sales of 12 major dairy companies averaged 4.93% in nominal terms between 2014-15 and 2020-21. After adjusting for an average wholesale price inflation of 3% for “dairy products” over this period, their real sales growth was slightly more than 1.9%.

Demand is the key
• Knowing what and how much Indians are consuming — which only a comprehensive nationwide HCE survey can reveal — is useful for analysis of demand and supply in other farm produce too. It helps in framing policies better, whether on fixation of minimum support prices and tariffs or on crop diversification.
• For example, the monthly per capita household consumption of all cereals in the 2011-12 survey was assessed at 11.22 kg for rural India, and 9.28 kg for urban India. At an average of 10 kg, the annual household cereal consumption requirement for 1,400 million people today would be around 168 mt.
• Assuming 25% additional consumption in processed form (bread, biscuits, cakes, noodles, vermicelli, flakes, etc.), and another 25 mt of grain (mainly maize) for feed or starch, the total yearly demand would be around 235 mt.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

5. THE GLOBAL FOREST SECTOR OUTLOOK 2050

THE CONTEXT: The report titled “The global forest sector outlook 2050: Assessing future demand and sources of timber for a sustainable economy” was released recently by the United Nations Food and Agriculture Organization (FAO) at the 26th Session of the Food and Agriculture Organization Committee on Forestry in Rome.
THE EXPLANATION:
• The newly released report estimates an increased demand for wood products like mass timber and manmade cellulose fibre that are used as alternatives to non-renewable materials. Their demand may surge by up to 272 million cubic metres by 2050.
• This is expected to create over 1 million jobs in developing countries. The report forecasts that the consumption of primary processed wood products will increase to 3.1 billion cubic meters by 2050. This estimation is based on the Global Forest Products Model, which uses historical patterns of the production and trade of wood products.
• The report also forecasted that the industrial roundwood (IRW) will be vulnerable to uncertainties caused by climate-change influenced government interventions in naturally regenerated production forests and the expansion of planted forests. The future demands for IRW will be met by both planted forests mainly from Global South and naturally regenerated temperate and boreal forests.
• In 2020, about 44 per cent of the IRW production was provided by regenerated temperate and boreal forests. During the same year, the planted forests contributed to around 46 per cent of the IRW supply.
• In the future, an additional 33 million hectares of “highly productive plantation forest” will be required to meet the demand in 2050, if the area of naturally regenerated forests remain intact.
• A total annual investment of 40 billion USD will be required to maintain and expand the IRW production by 2050. Another yearly funding of 25 million USD will be required for the modernization and establishment of industries.
• In 2050, consumption of wood energy will be concentrated in sub-Saharan Africa and South Asia, where fuelwood is traditionally used by communities. Firewood will also be used in modern biomass to generate renewable energy.
• In 2020, the global consumption of fuelwood was 1.9 billion cubic meters. In 2050, this figure is expected to increase 11 to 42 per cent by reaching 2.1 to 2.7 billion cubic meters.

VALUE ADDITION:
FAO:
• It is a specialized agency of the United Nations that leads international efforts to defeat hunger. Headquarters: Rome, Italy.
• Founded: 16 October 1945.
• Goal of FAO: Their goal is to achieve food security for all and make sure that people have regular access to enough high-quality food to lead active, healthy lives.
Important reports and Programmes:
• Global Report on Food Crises.
• Every two years, FAO publishes the State of the World’s Forests.
• FAO and the World Health Organization created the Codex Alimentarius Commission in 1961 to develop food standards, guidelines and texts.
• In 1996, FAO organized the World Food Summit. The Summit concluded with the signing of the Rome Declaration, which established the goal of halving the number of people who suffer from hunger by the year 2015.
• In 1997, FAO launched TeleFood, a campaign of concerts, sporting events and other activities to harness the power of media, celebrities and concerned citizens to help fight hunger.

PRELIMS PERSPECTIVE

6. THE SUN TEMPLE MODHERA

THE CONTEXT: The Prime Minister who is on visit to his home state of Gujarat ahead of the state assembly elections visited Modhera which is famous for its Sun Temple.
THE EXPLANATION:
• During his visit he declared Modhera village in Gujarat as India’s first 24×7 solar-powered village, talked about how invaders in the past tried their best to raze the historic Sun Temple in Modhera and the atrocities they committed on the people of the region.
• Sun Temple Modhera Sun Temple at Modhera is one of the few shrines that are dedicated to the Sun God. Situated on the banks of Pushpavati River in Modhera, Sun Temple is easily accessible from Ahmedabad, the largest city of Gujarat.
• In 1026, the temple was built by King Bhimdev of the Solanki dynasty (believed to be the descendants of the lineage of Sun God). This ancient temple revives the reminiscences of Sun Temple at Konark in Orissa. Turning in the pages of history, one can notice the mention of Modhera in the scriptures like Skanda Purana and Brahma Purana.
Architecture
• The brilliant architecture of the temple is one of its own class. The temple encompasses three different yet axially-aligned and integrated constituents.
• As per the Konark Temple, this shrine is designed in a manner, so that the first rays of the Sun cast on the image of the Lord Surya. The Temple was plundered by Mahmud Ghazni; still the architectural grandeur is not vanished.

OTHER SUN TEMPLES IN INDIA- PRELIMS PERSPECTIVE
1. Bhramanya Dev Temple At Unao, Madhya Pradesh.
2. Dakshinaarka Temple At Gaya, Bihar. …
3. Konark Sun Temple, Odisha. …
4. Sun Temple At Modhera, Gujarat. …
5. Vivasvan Sun Temple, Gwalior, Madhya Pradesh.
6. Arasavalli- Suryanarayana Temple, Andhra Pradesh.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY

Q1. The term Solidity, Rusk, Haskell, sometimes seen in news, are –
a) Exo-planets explored by NASA missions
b) Programming languages used in crypto-currency
c) International initiatives for climate change actions
d) Non-profit organisations working for human rights protection

Answer: B
Explanation:
• Solidity is the programming language mainly used on the blockchain platform Ethereum.
• In the crypto world, Rust is commonly associated with the Solana blockchain, which is known for its high speeds and relatively low transaction fees.
• Haskell is not well-known, and that it is not a popular programming language for beginners. Haskell is classified as a purely functional programming language, and is hard to learn.

1. Explained | Delhi-NCR’s revised action plan ‘GRAP’ to fight air pollution READ MORE
2. Climate change triggered droughts in Northern Hemisphere: Study READ MORE
3. Creating an equitable conservation model READ MORE

1. Instead of fearing death, improve your karmas READ MORE
2. Looking smart or living smart? READ MORE

1. Status beyond faith: The panel on giving SC status to converts has its work cut out READ MORE
2. Drug regulation must be robust READ MORE
3. Slack regulations: Quality in the pharmaceutical sector should be enforced without resorting to inspector raj READ MORE
4. Resisting attack on judiciary’s independence READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Indian Navy to join Exercise Malabar in Japan next month READ MORE
2. The programming languages running the crypto- economy READ MORE
3. The fate of chips will determine the fate of nations READ MORE
4. Early warning for heatwaves sees huge improvement READ MORE
5. Why has the Election Commission frozen the Shiv Sena’s symbol? READ MORE
6. To push autonomy for colleges, UGC set to amend guidelines READ MORE
7. Vultures mostly forage outside protected areas; conservation efforts should be focused there, urges study READ MORE
8. Telangana’s new forest conflict panels bring Centre-state land rights relation under scanner READ MORE

Main Exam

GS Paper- 1

1. The Sarasvati Civilization READ MORE
2. Hindu-Americans are in denial about caste. It’s been in religious scriptures for long READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Status beyond faith: The panel on giving SC status to converts has its work cut out READ MORE
2. Drug regulation must be robust READ MORE
3. Slack regulations: Quality in the pharmaceutical sector should be enforced without resorting to inspector raj READ MORE
4. Resisting attack on judiciary’s independence READ MORE

SOCIAL ISSUES

1. How can India reduce anaemia among women? By cleaning up the air, says a study READ MORE

INTERNATIONAL ISSUES

1. The coalition of the world READ MORE
2. India’s hour at the UNGA: Modi’s 5-S approach is the new Panchsheel on the global stage READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Rising interest rates and slowing external demand will dampen growth over the foreseeable future READ MORE
2. Time to look at reasons responsible for employee burnout READ MORE
3. Gaining currency: RBI should move cautiously on CBDC READ MORE

ENVIRONMENT AND ECOLOGY

1. Explained | Delhi-NCR’s revised action plan ‘GRAP’ to fight air pollution READ MORE
2. Climate change triggered droughts in Northern Hemisphere: Study READ MORE
3. Creating an equitable conservation model READ MORE

SCIENCE AND TECHNOLOGY

1. Explained | What lies at the heart of the 2022 Physics Nobel? READ MORE

SECURITY

1. Defence reforms in waiting for the new CDS READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Instead of fearing death, improve your karmas READ MORE
2. Looking smart or living smart? READ MORE

Questions for the MAIN exam

1. How far do you agree with this view that ECI and Courts are nit is position to address the issue of fiscal responsibility and an independent fiscal body, as recommended by fiancé commission, to do it? Analyse your view in light of ongoing freebies debate.
2. The National Logistics Policy can lead to greater integration of India into global value chains, higher share in international trade, higher employment, and accelerated economic growth. Examine.

QUOTATIONS AND CAPTIONS

• Without initiative, leaders are simply workers in leadership positions.
• To treat the Bengaluru floods as an isolated case would be an urban planning mistake as every key city is in need of a comprehensive climate action plan
• India must take a stand against Russia’s bombing and annexation of territory.
• Across the world, foundational ideas of major political systems are under challenge.
• In societies of ethos, free and autonomous women cause trouble. They challenge familial ideologies and threaten state ideologies based on family, caste, and religion.
• FPOs can play a major role in aggregating small farmers and help in value addition.
• India is assuming the leadership of SCO and G20. While the two groupings have divergent goals, Delhi will need to ensure that the concerns of developing nations are not ignored. An assertive foreign policy that seeks to shape and steer conversations will help.
• The National Logistics Policy can lead to greater integration of India into global value chains, higher share in international trade, higher employment, and accelerated economic growth.
• A financially feasible road map for fulfilling poll promises is the need of the hour to help voters make informed choices and deter irresponsible governments from living beyond their means.
• Though 5G would be a game changer its ill effects on the human health must be evaluated and made known to the public.
• Using the power of democracy, India created a new paradigm. It rejected the view that a country must first become economically fit for democracy.
• Great leaders create more leaders, not gobs of followers.
• Democracy is a journey but also a destination. India hasn’t lost the path, but hasn’t found the way. There is a danger of democracy degenerating into power grabbing. India remains vulnerable to populist demagoguery and the predatory power of cross-border corporate and governing institutions.

ESSAY TOPIC

• Balance is not something you find, it is something you create.
• Great leaders create more leaders, not gobs of followers.

50-WORD TALK

• We the people of India need to vehemently resist the attack on independence of the judiciary as judges are engaged in the larger fight for upholding the truth, protecting rights, preserving liberties, promoting justice, and most importantly, making power holders accountable to protect the values of constitutionalism. The threats to the judiciary are potentially grave threats to democracy.
• The outrage from members of both communities over Muslims attending Hindu garba events is what India doesn’t need right now. Casual interfaith intermingling around Eid, Diwali, Dushera, Christmas is the way to go. Communities living in religious silos will hurt the India Story in the 21st century phase of nation-building.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

[WpProQuiz 349]

THE CONTEXT: A WTO panel, in its ruling on December 14, 2021, recommended India to withdraw its subsidies on sugar under the Production Assistance, the Buffer Stock, and the Marketing and Transportation Schemes as they are violative of the WTO norms and rules. Ruling in favour of Brazil, Australia and Guatemala in their trade dispute against India over its sugar subsidies, the WTO panel has stated that the support measures are inconsistent with WTO trade rules. This article analyse this issue in detail.

ANALYSIS OF THE ISSUE

COMPLAINT AGAINST INDIA

• Australia, Brazil, and Guatemala said India’s domestic support and export subsidy measures appeared to be inconsistent with various articles of the WTO’s Agreement on Agriculture and the Agreement on Subsidies and Countervailing Measures (SCM).

SUBSIDIES BEYOND DE MINIMIS LEVEL

• All three countries complained that India provides domestic support to sugarcane producers that exceed the de minimis level of 10% of the total value of sugarcane production. They said it was inconsistent with the Agreement on Agriculture. (READ AHEAD).

OTHER POINTS OF CHALLENGES.

• They also raised the issue of India’s alleged export subsidies, subsidies under the production assistance and buffer stock schemes, and the marketing and transportation scheme.
• Australia accused India of “failing” to notify its annual domestic support for sugarcane and sugar subsequent to 1995-96, and its export subsidies since 2009-10, which it said were inconsistent with the provisions of the SCM Agreement.

PROCESS AT WTO

• The consultation followed between these countries and India did not resolve the issue.
• These countries then approached the Dispute Settlement Body (DSB) with the complaint that set up three panels to inquire into the allegations. These panels ruled against India.

THE PANELS’ FINDINGS.

• From 2014-15 to 2018-19, India’s domestic support to sugarcane producers exceeded the permitted level of 10% of the total value of sugarcane production.
• Therefore, India is acting inconsistently with its obligations under the Agreement on Agriculture.
• On the export subsidy, the panel also found that the support provided by India violated its obligations and India’s failure to notify its support measures to relevant WTO Committees also violated WTO norms.

THE PANELS’ RECOMMENDATIONS

• The panel asked India to bring its support measures in conformity with WTO rules and withdraw the prohibited subsidies.

WHAT HAS BEEN INDIA’S RESPONSE?

RESPONSE OF THE COMMERCE MINISTRY

• The findings of the panel were “completely unacceptable” to India.
• Australia, Brazil, and Guatemala had wrongly claimed that domestic support provided by India to sugarcane producers is in excess of the limit allowed by the WTO and that India provides prohibited export subsidies to sugar mills.
• The panel’s findings were “erroneous”, “unreasoned”, and “not supported by the WTO rules.
• The Panel has also evaded key issues which it was obliged to determine. Similarly, the Panel’s findings on alleged export subsidies undermine logic and rationale.
• As of now, there is no export subsidy on sugar, and hence the ruling will have no impact on the sugar export.

ON DOMESTIC SUPPORT/SUBSIDY.

• India held that its subsidy does not come under the meaning of market price support under the AoA. It pointed out that the FRP is paid to the sugar mills and not to the sugarcane producers.
• It argued that as per the meaning of market price support, it would be violated only when the govt pays for or procures the agricultural product.
• The panel rejected this argument — saying “market price support does not require governments to purchase or procure the relevant agricultural product”.

APPEAL TO APPELLATE BODY(AB)

• India has appealed against the ruling of the World Trade Organization’s (WTO) trade dispute settlement panel.
• India filed the appeal in the WTO’s Appellate Body, the final authority on such trade disputes.
• Pending the disposal, India is not bound to implement the orders of the DSB Panel. The AB has not been operational due to vacancies that the USA has consistently refused to fill.

CLARIFYING CONCEPTS: THE WTO TERMINOLOGIES

WHAT IS AoA?

To reform the agriculture trade and to improve the predictability and security of importing and exporting countries, the World Trade Organization came up with the agriculture agreement. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO on January 1, 1995. The three provisions/pillars that the agriculture agreement focuses on are –

• Market access — the use of trade restrictions, such as tariffs on imports
• Domestic support — the use of subsidies and other support programmes that directly stimulate production and distort trade
• Export competition — export subsidies and other government support programmes that subsidize exports.

DOMESTIC SUPPORT

• There are two categories of domestic support — support with no, or minimal, distortive effect on trade on the one hand (often referred to as “Green Box” measures) and trade-distorting support on the other hand (often referred to as “Amber Box” measures).
• For example, government-provided agricultural research or training is considered the former type, while government buying-in at a guaranteed price (“market price support”) falls into the latter category.
• Under the Agreement on Agriculture, all domestic support favouring agricultural producers is subject to rules. The Green Box also provides for the use of direct payments to producers, which are not linked to production decisions, i.e. although the farmer receives a payment from the government, this payment does not influence the type or volume of agricultural production (“decoupling”).
• The “Blue Box” exemption category covers any support measure that would normally be in the “Amber Box”, but which is placed in the “Blue Box” if the support also requires farmers to limit their production.
• All domestic support measures which do not correspond to the exceptional arrangements known as the “Green” and “Blue” boxes, are considered to distort production and trade and therefore fall into the “Amber Box” category.

DE MINIMIS LEVEL

• Minimal amounts of domestic support that are allowed even though they distort trade — up to 5% of production value for developed countries, 10% for developing.
• All domestic support measures favouring agricultural producers that do not fit into any of the above exempt categories are subject to reduction commitments. This domestic support category captures policies, such as market price support measures, direct production subsidies or input subsidies.
• However, under the de minimis provisions of the Agreement there is no requirement to reduce such trade-distorting domestic support in any year in which the aggregate value of the product-specific support does not exceed 5 percent of the total value of production of the agricultural product in question.
• In addition, non-product specific support of less than 5 percent of the value of total agricultural production is also exempt from reduction. The 5 per cent threshold applies to developed countries, whereas in the case of developing countries, the de minimis ceiling is 10 percent.

AGGREGATE MEASUREMENT OF SUPPORT

• The AMS represents trade-distorting domestic support and is referred as the “amber box”. As per the WTO norms, the AMS can be given up to 10 % of a country’s agricultural GDP in the case of developing countries.
• On the other hand, the limit is 5% for a developed economy. This limit is called de minimis level of support. It means that the AMS and the De Minimis Level are similar. Both relates to the Amber box.

SCM

• The Agreement on Subsidies and Countervailing Measures (Subsidies Agreement) of the World Trade Organization (WTO) provides rules for government subsidies and applying remedies to address subsidized trade that has harmful commercial effects.
• These remedies can be pursued through the WTO’s dispute settlement procedures, or through a countervailing duty (CVD) investigation which can be undertaken unilaterally by any WTO member government.
• Countervailing measures may be used against subsidies when imports of subsidized goods harm a competing domestic industry. They are used to offset the effect of the subsidy by, for example, imposing a countervailing duty (limited to the amount of the subsidy) on the import of subsidized goods or securing quid pro quo commitments from the subsidizing country (that it will abolish or restrict the subsidy, or that exporters will raise prices).
• Export subsidies which are in full conformity with the Agriculture Agreement are not prohibited by the SCM Agreement, although they remain countervailable. Domestic supports which are in full conformity with the Agriculture Agreement are not actionable multilaterally, although they also may be subject to countervailing duties.

DISPUTE SETTLEMENT BODY (DSB)

• Settling disputes is the responsibility of the Dispute Settlement Body (the General Council in another guise), which consists of all WTO members. The Dispute Settlement Body has the sole authority to establish “panels” of experts to consider the case and accept or reject the panels’ findings or the results of an appeal. It monitors the implementation of the rulings and recommendations and can authorize retaliation when a country does not comply with a ruling.
• Under the Subsidies Agreement, if a WTO member government believes that non permissible subsidy is being granted or maintained by another member government, it can request consultations with that government under the WTO’s dispute settlement procedures.
• If no mutually agreeable solution is reached in initial consultations, the matter can be referred to the WTO’s Dispute Settlement Body (DSB), which consists of representatives of all WTO members.
• The DSB establishes a panel, which reports its findings to the parties to the dispute with in a time frame. If the panel finds that the measure in question is a prohibited subsidy, the subsidizing government must withdraw it without delay.
• But when the appeal is filed in the AB and not yet decided, the practice is that the member country does not withdraw the subsidy immediately. The DSB can only reject the recommendations of the Panel on consensus among the members.

APPELLATE BODY

• The Appellate Body was established in 1995 under Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). It is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members. The Appellate Body can uphold, modify or reverse the legal findings and conclusions of a panel. Appellate Body Reports are adopted by the Dispute Settlement Body (DSB) unless all members decide not to do so. The Appellate Body has its seat in Geneva, Switzerland.
• Currently, the Appellate Body is unable to review appeals given its ongoing vacancies. The term of the last sitting Appellate Body member expired on 30 November 2020.

NAIROBI PACKAGE

• The Nairobi Ministerial conference was held in 2015. WTO members decided to eliminate the export subsidies on agriculture and make new rules on export measures that have a covalent effect. To implement this decision, the developed countries will remove all the subsidies on export immediately. Developing countries will have a little longer period to eliminate the subsidies except for a few agricultural products.
• The decision was taken to give effect to the sustainable development goal on zero hunger and also help the farmers of the developing countries who face intense competition against the rich countries and the artificially boosted exports by the help of subsidies.
• Members also collectively agreed to find a permanent solution for developing countries to use the public stockholding programs for food security purposes. Negotiation on a special safeguard mechanism, which allows the developing countries to raise tariffs temporarily on agricultural products in cases of import surges or price falls, was also agreed upon by the ministers.

BALI PACKAGE 2013

• Members agreed to refrain from challenging the breach of domestic support commitments that resulted from developing countries’ public stockholding programs for food security if they met certain conditions. They also decided to negotiate towards the permanent solution for public stockholding for security purposes.
• A more transparent tariff rate quota administration was called for whereby the governments were not allowed to create trade barriers by distributing quotas among importers.
• The list of general services includes more spending on land use, Land Reforms water management, and other poverty reduction programs that come under the green box( Green box is domestic support which is allowed without any limit as it does not distort the trade) were to be expanded.
• A declaration on the reduction of all forms of export subsidies and enhancement of transparency and monitoring was made.
• The Bali package also provides for a peace clause that protects the food procurement programs of developing countries from the action of other WTO members if the developing country branches the subsidy ceiling as given.
• In 2018-19 India became the first WTO member country to invoke this clause in the financial year. India stated that its rice production was $43.67 billion and it provided subsidies of $ 5 billion to the farmers, which is more than the de minimis level of 10%. To safeguard its domestic support policy the Indian government invoked the peace clause.

PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES: ANOTHER PRESSING ISSUE

Some governments use public stockholding programmes to purchase, stockpile and distribute food to people in need. While food security is a legitimate policy objective, some stockholding programmes are considered to distort trade when they involve purchases from farmers at prices fixed by the governments, known as “supported” or “administered” prices.

In India’s case the subsidies provided to run the food security programme (NFSA) as per the developed member countries are trade distorting and they fall under the   Amber box. As per AMS, the total support in monetary terns should not exceed 10 percent of the total value of agri production as on 1986-88. The government buys the produce at MSP which subsidises the prices of food grains. In the instant case (sugar subsidy), the public stock holding programme per se was not challenged but one specific component “buffer stock” of sugar, presumably related to the subsidised sugar provision to the Antyodaya Anna Yojna category under the NFSA. But India argues that the public stockholding programme is vital for its food security, nutritional needs, supporting the marginalised farmers, and meeting the goals of SDGs.

At the 2013 Bali Ministerial Conference, ministers agreed that, on an interim basis, public stockholding programmes in developing countries would not be challenged legally even if a country’s agreed limits for trade-distorting domestic support were breached. They also agreed to negotiate a permanent solution to this issue.

A decision on public stockholding taken at the 2015 Nairobi Ministerial Conference reaffirmed this commitment and encouraged WTO members to make all concerted efforts to agree on a permanent solution.

In the MC III, the G 33 is seeking a permanent solution to the stockholding issue.

VARIOUS SUBSIDIES PROVIDED BY INDIA FOR SUGAR SECTOR

SCHEME FOR EXTENDING FINANCIAL ASSISTANCE TO SUGAR UNDERTAKINGS (SEFASU-2014)

• The Government on 3.1.2014 notified a Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU-2014) envisaging interest free loans by bank as additional working capital to sugar mills, for clearance of cane price arrears of previous sugar seasons and timely settlement of cane price of current sugar season to sugarcane farmers. Rs. 6484.77 crore has been disbursed under the scheme. For five years, the interest burden on this loan is borne by the Government through Sugar Development Fund.

SOFT LOAN TO SUGAR MILLS TO FACILITATE CLEARANCE OF CANE PRICE ARREARS

• A scheme was notified on in 2015 to provide soft loan to sugar mills to facilitate clearance of cane price arrears of current sugar season 2014-15. Rs. 4213 cores have been disbursed under the scheme. The Government bore interest subvention during moratorium period of one year. About 32 lakh farmers have been benefited.

OTHERS

• The procurement at the Fair and Remunerative Prices and the PDS operations for sugar for AAY card holders etc.

EXPORT SUBSIDY

• There is no export subsidy for sugar as of now.

WHAT IS THE WAY FORWARD?

OVERHAULING THE AoA

• The genesis of the problem lies in the skewed nature of many agreements that are set in stone at WTO.
• The agreements that were negotiated during the Uruguay Round of the General Agreement on Trade and Tariffs, which governed global trade before the establishment of WTO on January 1, 1995.
• The most egregious of these is AOA which astute negotiators pushed through from the rich world to suit their interests.

RE WORKING OF SUBSIDIES AND RE DEFINITION OF “ BOXES”.

• Those considered non-distorting are listed in the green box, the minimally distorting ones come under the blue box while subsidies seen as causing serious market distortions are categorised as amber box subsidies.
• Nearly all the rich countries’ subsidies fall into the green box while those of developing nations are mostly in the amber box.
• There is no expenditure limit on the subsidies that fall into the first two boxes while the amber box subsidies have to be limited to 10 per cent of the value of agricultural production for developing countries and 5 per cent for developed countries.

PRO ACTIVE LOBBYING BY G-33

• The G 33 needs to work in a coordinated manner and position itself as a pressure group to safeguard and promote the developing countries’ interests transparently. The forthcoming MC 12, scheduled to be held in Geneva at the end of 2021 has been postponed which will provide more time for the G 33 to develop consensus and common strategy on issue like Public Stock holding, food security, fisheries subsidy, domestic support etc.
• The momentum generated  from the G-33 Virtual Informal Ministerial Meeting organized by Indonesia in December 2021 needs to be harnessed and follow up actions needs to be continued at official level.

APPEALING THE DECISION

• India has appealed the ruling on sugar subsidy and as the AB is not functional as of now it provides enough space to India for recalibrating the content and compositions of its subsidies if need be.

LEARNING FROM SETBACKS.

• Of late India has been at the receiving end of the WTO dispute resolutions and many decisions  have gone against it like the Domestic Content  Requirement  on solar panels, the export subsidy schemes in 2019, and the recent challenges. It means that there is a requirement  for India to bring its subsidy/support regime in consistent  with the WTO norms and at the same time devise such innovative measures that comply with WTO regimes.

THE CONCLUSION: The WTO system is the sheet anchor for a rule based multilateral trading system. Thus, the dispute setline and adherence to the rulings is necessary for realizing the objective. But that does not mean the sovereign rights of a country to devise policies for the welfare and development of a country should be forfeited. What is necessary is to create a healthy balance between the two and that’s why there has to be synergy between foreign trade policy and domestic agricultural policies which are dynamically linked with the WTO norm and rules.

INDIAN POLITY AND GOVERNANCE

1. THE ONLINE GAMING MARKET IN INDIA, AND PROPOSED RULES TO REGULATE IT

THE CONTEXT: Recently, an inter-ministerial task force, set up by the Ministry of Electronics and Information Technology (MeitY) to propose contours of a national-level legislation to regulate online gaming, has proposed the creation of a central regulatory body for the sector, clearly defining what games of skill and chance are, and bringing online gaming under the purview of the Prevention of Money Laundering Act, 2002, among other things.

THE EXPLANATION:

The task force, set up by MeitY in May 2022, included the CEO of government think tank Niti Aayog, and secretaries of ministries including IT, Home, Finance, Information and Broadcasting, and Consumer Affairs, among others. The task force is understood to have prepared a final report of its recommendations and submitted it to the IT Ministry.

Why a central-level law?

• Online gaming so far has been a state subject, but state governments have said they find it extremely difficult to enforce certain rules like geo-blocking certain apps or websites within the territory of their state. Also, there is a concern that rules passed in one state are not applicable in another, which has caused inconsistency in how the online gaming industry is regulated in the country. State governments also do not have enough blocking powers like the Centre to issue blocking orders for offshore betting sites.
• Stakeholders have highlighted a number of societal concerns that can arise from the proliferation of online games in the country. There have been a number of reported incidents of people losing large sums of money on online games, leading to suicides in various parts of the country.
• Along with that, there is currently no regulatory framework to govern various aspects of online gaming companies such as having a grievance redressal mechanism, implementing player protection measures, protection of data and intellectual property rights, and prohibiting misleading advertisements.
• For online gaming businesses, the inconsistency has led to uncertainty. The thinking within the government is to have a nodal agency that will address all issues related to online gaming, including introducing a uniform law to determine what forms of online gaming are legally allowed.

How big is the online gaming market in India?

• The revenue of the Indian mobile gaming industry is expected to exceed $1.5 billion in 2022, and is estimated to reach $5 billion in 2025. The industry in the country grew at a CAGR of 38% between 2017-2020, as opposed to 8% in China and 10% in the US. It is expected to grow at a CAGR of 15% to reach Rs 153 billion in revenue by 2024. India’s percentage of new paying users (NPUs) in gaming has been the fastest growing in the world for two consecutive years, at 40% in 2020 and reaching 50% in 2021.
• According to a report by EY and FICCI, transaction-based games’ revenues grew 26% in India, with the number of paying gamers increasing by 17% from 80 million in 2020 to 95 million in 2021.

What are the recommendations of the task force?

• According to a source aware of the task force’s report, a central-level law for online gaming should apply to real money and free games of skill, including e-sports, online fantasy sports contests, and card games among others. Casual games with no real money element in the form of stakes may be kept outside the scope of such rules, unless they have a high number of users in India, or permit the publication or transmission of information in the nature of any inappropriate content like violence, nudity, addictive content or misleading content.
• It has also recommended creating a regulatory body for the online gaming industry, which will determine what qualifies as a game of skill or chance, and accordingly certify different gaming formats, seek compliance and enforcement.
• A three-tier dispute resolution mechanism, similar to that prescribed under the Information Technology Rules, 2021 for online streaming services, consisting of a grievance redressal system at the gaming platform level, self regulatory body of the industry, and an oversight committee led by the government should be put in place for online gaming.
• Any online gaming platform – domestic or foreign– offering real money online games to Indian users will need to be a legal entity incorporated under Indian law. These platforms will also be treated as ‘reporting entities’ under the Prevention of Money Laundering Act, 2002, and will be required to report suspicious transactions to the Financial Intelligence Unit-India.

Which ministry will be in charge of the regulation?

• The task force has suggested that MeitY may act as the nodal ministry to regulate online gaming, except for the e-sports category on which the Department of Sports can take the lead. The scope of the regulation by MeitY should only cover online gaming, that is, games of skill, and the issues of online betting and gambling being games of chance in nature should be excluded from its scope, the task force is learnt to have recommended.
• Certain other aspects of online gaming such as advertisements, code of ethics relating to content classifications etc. could be regulated by the Information and Broadcasting Ministry, while the Consumer Affairs Ministry can regulate the sector for unfair trade practices.

INTERNATIONAL RELATIONS

2. BURKINA FASO MILITARY COUP

THE CONTEXT: The recent coup d’état resulted in the overthrowing of the Interim President Paul-Henri SandaogoDamiba and army Captain Ibrahim Traore taking over the government.

THE EXPLANATION:

• On September 30, 2022, the second coup took place in Burkina Faso this year, resulting dissolution of the traditional government and suspension of the constitution.
• The interim President Damiba was overthrown because of his alleged involvement in the African country’s Islamic insurgency.
• Earlier this year, on January 24, Burkina Faso’s Army led by Damiba disposed President Roch Kabore, who held the office for more than 6 years. The coup came in response to several days of unrest in the country’s capital Ouagadougou.
• The civilian government was ousted for its inability to address deteriorating security situation and the inability to unite the country.
• Since 2015, Burkina Faso has been witnessing escalating violence mainly because of rebel fighters having close ties with extremist Islamic groups – al-Qaeda and the ISIL.
• The country has since become an epicentre for conflict in the Sahel, resulting in deaths of thousands of people and displacing 2 million others.
• The Damiba-led coup led to the suspension of Burkina Faso from Economic Community of West African States (ECOWAS).
• After Damiba took over the government, there has been a 23 per cent increase in attacks from armed factions.
• The military government was able to control just 60 per cent of the country and the remaining territory was outside its control.
• The Damiba government was facing criticism because of its pro-France stance, amid the rising sentiments against the former colonizer.
• According to the UN, Burkina Faso is among the few West African nations facing “alarming levels” of hunger. It is currently witnessing the worst hunger crisis in 6 years, with over 630,000 individuals at the brink of starvation.
• Now, the military government led by Traore announced that a new interim leader (either civilian or military) will be appointed by the end of this year and it will honour the agreement with ECOWAS and oversee the return of civilian government by 2024.

DEFENCE AND SECURITY AFFAIRS

3. AATMANIRBHAR IN DEFENCE PRODUCTION

THE CONTEXT: According to a study released by the Stockholm International Peace Research Institute (SIPRI), a widely respected independent resource on global security, India ranks fourth among 12 Indo-Pacific nations in self-reliant arms production capabilities

THE EXPLANATION:

• The study, which measures self-reliance until 2020, is based on three indicators of self reliance in each country:
• Arms procurement — imports, licensed and domestic production as a proportion of the government’s total procurement of major conventional arms.
• Arms industry — the study presents the five largest arms companies in each country, where data are available, ranked by sales of arms and military services in 2020 to both domestic and export customers;
• Uncrewed maritime vehicles, the sea equivalent of drones — covering both uncrewed surface vehicles (USVs) and uncrewed underwater vehicles (UUVs), meant to provide a qualitative understanding of how countries are engaging domestic research institutes and firms to produce such cutting edge systems.
• The study’s choice of maritime domain was because the Indo-Pacific region is a “maritime theatre”, and most of its flashpoints involve navies. The 12 countries in the study were selected because they have the highest military spending in the region — Australia, China, India, Indonesia, Japan, South Korea, Malaysia, Pakistan, Singapore, Taiwan, Thailand and Vietnam.
• According to the study, understanding and determining the extent of self-reliance in the Indo-Pacific region, which has several ongoing flashpoints, is crucial for trust and confidence-building among states. This region has also seen a growing allocation by states for defence procurement. Eighteen arms manufacturing companies based in the region were ranked among the world’s largest arms companies in 2020.
• “[I]n a region where tensions among neighbours are rising, this report contributes to transparency with regards to levels of self-reliance in domestic arms production, allowing for an independent assessment of the region’s respective arms industries,” the study says.
• China was the world’s fifth largest arms importer in 2016-20. Its self-reliance policies, and its high economic growth in that period meant that the Chinese arms industry now increasingly fulfills the requirements of the People’s Liberation Army (PLA). Its high volume of imports in absolute terms accounts for only 8 per cent of total procurement for the period, the lowest share for any of the 12 governments studied in this report.

• China’s arms industry primarily involves nine large state-owned enterprises (SOEs). All eight companies for which data are available are in the top 100, with four in the top 10 in 2020. Four are dominant in the aerospace and aviation sectors, two in land systems, one in electronics, one in shipbuilding, and one in nuclear power.
• India is ranked as the second largest importer of arms for its armed forces in 2016-20. India is highly dependent on imports of complete foreign major arms, including many produced under licence or as components for its domestic production.
• Of India’s total volume of procurement in 2016–20, 84 per cent was of foreign origin. Domestic arms companies provide only 16 per cent of its total procurement. According to the study, the significant arms sales of local firms and the high level of licensed production push India to fourth position in the list.
• Hindustan Aeronautics Ltd, Indian Ordnance Factories, Bharat Electronics, Mazagaon Docks and Cochin Shipyard are among the major Indian arms servicing companies. Ashok Leyland, one of the largest suppliers of trucks to the Indian Army, is the only company ranked in the top 50 in the Indo-Pacific.

PRELIMS PERSPECTIVE

4. SASTRA RAMANUJAN PRIZE FOR 2022

THE CONTEXT: The SASTRA Ramanujan Prize was recently bestowed to Yunqing Tang – an Assistant Professor at the University of California.

THE EXPLANATION

• The SASTRA Ramanujan Prize for 2022 was conferred to Yunqing Tang for her works in arithmetic and geometry of modular curves and Shimura varieties.
• Tang was recently involved in a joint research on modular equation in collaboration with Frank Calegari and Vesselin Dimitrov. This research is closely linked to Indian Mathematician Srinivasa Ramanujan’s work.
• Yunqing Tang is a Chinese-born Assistant Professor at the University of California, Berkeley.
• She completed her B.Sc in Peking University in 2011, after which she received her PhD in Harvard in 2016 under the guidance of Mark Kisin.
• SASTRA Ramanujan Prize will be conferred to Tang at the International Conference on Number Theory, which will be held from December 20 to 22 this year at SASTRA University

About SASTRA Ramanujan Prize

The prestigious award was instituted by the Shanmugha Arts, Science, Technology & Research Academy (SASTRA) in the year 2005. It includes a cash prize of 10,000 USD. The award recognizes individuals aging 32 and below who have made significant contributions in the field of mathematics that is broadly influenced by Srinivasa Ramanjuan. The first to receive this award was Manjul Bhargava and Kannan Soundararajan.

Who was Srinivasa Ramanujan?

• Srinivasa Ramanujan was an Indian mathematician who made major contributions to mathematics despite lacking formal training in the field. He made notable breakthroughs in mathematical analysis, infinite series, number theory and continued fractions. He solved mathematical problems that were previously thought to be unsolvable.
• Ramanujan was born on December 22, 1887 and passed away at the age of 32 on April 26, 1920. During his short life, Ramanujan compiled nearly 3,900 results, mostly identities and equations. Most notable of them are Ramanujan prime, the Ramanujan theta function, mock theta functions and partition formulae.

GOVERNMENT SCHEMES AND INTERVENTIONS

5. BHARAT SKILLS FORUM

THE CONTEXT: Bharat Skills Forum is a new feature of the Bharat skills learning platform.

THE EXPLANATION:

• The Bharat Skills Forum, which was added to the Bharat skills learning platform, enables sharing of books, videos, question banks, handwritten trainers’ and trainees’ notes, PDFs, scanned copies etc., in any language to interested learners.
• This new feature will act as a digital warehouse for skilling community by providing wide-range of digital content.

What is Bharat skills platform?

• Launched in 2019, the Bharat skills is an online training platform that provides skills concerning Industrial Training Institutes (ITI) ecosystems.
• It is the central digital repository for skills that provides easy access to digital study materials such as e-books, question banks, learning videos etc., as well as updated curriculum for courses provided under the Craft Instructor Training Scheme (CITS), Craftsmen Training Scheme (CTS) and Apprenticeship Training Scheme (ATS). It provides unique centralized, scalable and thriving assistance ecosystem with the help of industrial partners.
• Through this, students and teachers can learn skills related to Industrial Revolution 4.0 to meet the demands of the industry. Currently, the content in this platform is developed by the National Instructional Media Institute (NIMI) and Directorate General of Training (DGT).

About Directorate General of Training (DGT)

• The Directorate General of Training (DGT) comes under the aegis of the Union Ministry of Skill Development and Entrepreneurship (MSDE). It is government agency involved in providing vocational training for Indian youth under the Skill India Programme – the flagship scheme of the Indian government.
• It has a network of around 15,000 Industrial Training Institutes (ITIs), National Skills Training Institutes, National Skills Training Institutes for Women and other central training institutes. These institutes provide training to over 24 lakh students each year, catering to the industrial demands on skilled workforce.
• They play an important role in providing skilled manpower for various sectors of the Indian economy.

MISCELLANEOUS

6. THE NOBEL PEACE PRIZE WINNERS FOR 2022

THE CONTEXT: The Nobel Peace Prize for 2022 has been awarded to human rights advocate Ales Bialiatski from Belarus, the Russian human rights organisation Memorial, and the Ukrainian human rights organisation Center for Civil Liberties, the Norwegian Nobel Committee announced.

THE EXPLANATION:

• The laureates represent civil society in their home countries, said the committee, “They have for many years promoted the right to criticise power and protect the fundamental rights of citizens. They have made an outstanding effort to document war crimes, human right abuses and the abuse of power. Together they demonstrate the significance of civil society for peace and democracy”.
• With the awardees being from Belarus, Ukraine, and Russia, an implicit message has been sent about the ongoing conflict between Russia and Ukraine. “The Norwegian Nobel Committee wishes to honour three outstanding champions of human rights, democracy and peaceful co-existence in the neighbour countries Belarus, Russia and Ukraine”,
• The three prize winners: Belarus’s Ales Bialiatski
• According to the website, “Ales Bialiatski was one of the initiators of the democracy movement that emerged in Belarus in the mid-1980s.” Before 1991, when the former Soviet Union fell and independent countries emerged, many countries in Central Asia and Europe saw pro-independence movements. Belarus President Alexander Lukashenko has been in power since 1994 – when the post first came into being.
• Bialiatski is also credited with founding the organisation Viasna (Spring) in 1996 in response to the controversial constitutional amendments that gave the president dictatorial powers. Over time, Viasna evolved into a “broad-based human rights organisation that documented and protested against the authorities’ use of torture against political prisoners”.
• Having been imprisoned earlier for three years, he was arrested most recently after the large-scale demonstrations against the regime in 2020 and is still detained without trial. In 2020, he was one of the three recipients of the Right Livelihood Award by the Swedish Right Livelihood Foundation, sometimes referred to as the “Alternative Nobel”.

Russian human rights organisation, Memorial

The committee said the organisation was established in 1987, “by human rights activists in the former Soviet Union who wanted to ensure that the victims of the communist regime’s oppression would never be forgotten.” Nobel Peace Prize laureate Andrei Sakharov, who won the prize in 1954, and human rights advocate Svetlana Gannushkina were among the organisation’s founders. “Memorial is based on the notion that confronting past crimes is essential in preventing new ones”.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY

Q1. There has been a recent proposal to establish International Dark Sky Reserve in India. In which of the following state/U.T is it proposed to be located?

a) Maharashtra

b) Pondicherry

c) Chandigarh

d) Ladakh

Answer: D

Explanation:

• Ladakh government along with the IIA (Indian Institute of Astrophysics (IIA), Bengaluru) and India’s Scientific Ministries is laying the groundwork to have Hanle declared as an International Dark Sky Reserve by the International Dark-Sky Association (IDSA).
• A Dark Sky Reserve is public or private land with a distinguished nocturnal environment and starry nights that has been developed responsibly to prevent light pollution.
• Since 1988, the U.S.-based nonprofit IDSA has been advocating the cause of minimizing light pollution and certifies places where night skies are least polluted as International Dark Sky Reserves or sanctuaries. Between 2001 and January 2022, there have been 195 sites recognised as International Dark Sky Places globally, the IDSA said.
• The IIA already manages the Indian Astronomical Observatory (IAO) complex at Hanle, Ladakh.
• Here, scientists have been carrying out astronomical observations using the existing gamma ray, an infrared and an optical telescope to study exoplanets, galaxies and stars through the pristine skies of Hanle.

THE CONTEXT: To understand why, how and what of the COVID-19 being declared as a ‘notified disaster’, one should know first about disaster, how disaster is categorized and funding is determined by the Centre. In brief, one should have understanding of some legal and procedural aspects of the NDMA 2005.

DO YOU KNOW?

As you are aware that the NDMA 2005 was one of the very significant legislation of 2005 and first important landmark legislation for a holistic disaster management in India which is blueprint for making India a disaster resilient country. The law has become basis for taking a series of steps by the government to establish policy, procedural and institutional mechanisms for disaster management in India.

THE KEY FEATURES OF THE NDMA 2005

The law lays down following key mechanisms to make India a disaster resilient country and match to the global standards in disaster management. The key features are:

1. It envisages for an institutional mechanism from top to bottom for decision making, planning, relief and rescue
2. It envisages for laying down a disaster management policy and plan at national and state level
3. It deals with disaster management holistically consisting of pre-disaster, during disaster and post disaster cycle
4. It envisages for two separate funds knows as DMMF/DMRF for centre and SDMMF/SDMRF for states
5.  It lays down for a dedicates disaster management force known as NDRF capable of tackling all types of disaster through land, air and sea
6. It also has also provisions for promoting research and studies through IIDM, New Delhi.

At the apex, it is the national disaster management authority headed by the Prime Minister which is responsible for taking important decisions related to disaster management in India followed by several committees, ministries and departments.

HOW DOES THE TERM ‘DISASTER’ IS DEFINED BY THE NDMA?

As per the Disaster Management Act, 2005, “disaster” means a catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or man-made causes, or by accident or negligence which results in substantial loss of life or human suffering or damage to, and destruction of, property, or damage to, or degradation of, environment, and is of such a nature or magnitude as to be beyond the coping capacity of the community of the affected area. A natural disaster includes earthquake, flood, landslide, cyclone, tsunami, urban flood, heatwave; a man-made disaster can be nuclear, biological and chemical.

HOW THE TERM DISASTER IS CLASSIFIED?

We often hear demands by the states to declare a calamity as national disaster from the Centre. You also know that at times there is difference in view on whether a disaster should be declared as national disaster.

But you will wonder to notice the fact that there is no any defined standards or legal provision for the categorization of disasters. The NDMA is silent on this provision that it doesn’t have a clearly defined mechanism for the classification of the disasters. Rather, the classification is done on the case by case basis. For instance, learning from the past experiences, the disasters have been classified as

CLASSIFICATIONS

DISASTERS

A. A calamity of unprecedented severity

1. The 1999 super cyclone in Odisha
2. The 2001 Gujarat earthquake

B. Calamities of severe nature

1. The flash floods in Uttarakhand
2. Cyclone Hudhud
3. The Kerala floods

C. Notified disaster

1. COVID-19

DOES IT MEAN THE TERM NATIONAL DISASTER WHICH IS OFTEN USED HAS NO LEGAL BASIS?

Yes, the term has no legal basis and it is used in general parlance by the governments and media. For instance, the state of Kerala demanded that the flood should be declared as National Disaster but the central government replied that there is no such term like national disaster.

The central government examine the proposal of the Kerala and the MoS (Home) replied to a question in Parliament “The existing guidelines of State Disaster Response Fund (SDRF)/ National Disaster Response Fund (NDRF), do not contemplate declaring a disaster as a ‘National Calamity’.” There is no provision, executive or legal, to declare a natural calamity as a national calamity. It is used more in general parlance.

Therefore, there is no provision in the law or rules for the government to designate a disaster a “national calamity” and the guidelines of the NDRF and SDRFs don’t contemplate declaring a disaster a national calamity. The Centre also informed the Kerala High Court that there was no legal provision to declare a disaster as a national calamity, amid demands for declaring the floods as a national disaster.

DOES IT MEAN THERE HAS BEEN NO EFFORTS TO DEFINE THE STANDARDS OF DISASTERS?

In 2001, the National Committee on Disaster Management under the chairmanship of the then Prime Minister was mandated to look into the parameters that should define a national calamity. However, the committee did not suggest any fixed criterion.

The 10th Finance Commission (1995-2000) examined a proposal that a disaster be termed “a national calamity of rarest severity” if it affects one-third of the population of a state. The panel did not define a “calamity of rare severity” but stated that a calamity of rare severity would necessarily have to be adjudged on a case-to-case basis taking into account, inter-alia,

1. The intensity and magnitude of the calamity,
2. Level of assistance needed,
3. The capacity of the state to tackle the problem,
4. The alternatives and flexibility available within the plans to provide succour and relief

WHY IS IT IMPORTANT TO CLASSIFY A CALAMITY OR DISASTER?

Simply because it is the categorization which ultimately determines the quantum of relief sanctioned by the CENTRE to the states under the SDRFs. If a disaster is categorized as ‘rare severe nature’ then accordingly the state will receive the relief from the Centre.

WHICH AUTHORITY IS RESPONSIBLE FOR CATEGORISING THE DISASTERS?

The classification is the responsibility of the NDMA which is headed by the Prime Minister. But in actual practice, it is done by the national executive committee headed by the Home Secretary and is notified by the Ministry of Home Affairs. In general, it can be said that disasters are categorized and notified by the Ministry of Home Affairs.

WHAT HAPPENS IF A CALAMITY IS SO CATEGORISED?

1. When a calamity is declared to be of “rare severity”/”severe nature”, support to the state government is provided at the national level. The Centre also considers additional assistance from the NDRF.
2. A Calamity Relief Fund (CRF) is set Up, with the corpus shared 3:1 between Centre and state.
3. When resources in the CRF are inadequate, additional assistance is considered from the National Calamity Contingency Fund (NCCF), funded 100% by the Centre.
4. Relief in repayment of loans or for grant of fresh loans to the persons affected on concessional terms, too, are considered once a calamity is declared “severe”.

HOW IS THE FUNDING DECIDED?

1. For calamity with national ramifications: As per the National Policy on Disaster Management, 2009, the National Crisis Management Committee headed by the Cabinet Secretary deals with major crises that have serious or national ramifications.
2. For other calamities:For calamities of severe nature, inter-ministerial central teams are deputed to the affected states for assessment of damage and relief assistance required. An inter-ministerial group, headed by the Union Home Secretary, studies the assessment and recommends the quantum of assistance from the NDRF/National Calamity Contingency Fund (NCCF). Based on this, a high-level committee comprising the Finance Minister as chairman and the Home Minister, Agriculture Minister, and Planning Commission Deputy Chairman as members approves the central assistance.

HOW MUCH FUNDS HAS THE CENTRE BEEN DISBURSING UNDER THE NDRF?

According to a reply in Parliament by MoS (Home) in January 2020, the Centre released Rs 3,460.88 crore in 2014-15, Rs 12,451.9 crore in 2015-16, and Rs 11,441.30 crore in 2016-17 under the NDRF to various states. In 2017-18 until December 27, it had disbursed Rs 2,082.45 crore. State-wise figures showed that the highest amounts for 2016-17 were released to

1. Karnataka (Rs 2,292.50 crore),
2. Maharashtra (Rs 2,224.78 crore) and
3. Rajasthan (Rs 1,378.13 crore).

HOW ARE THE NDRF AND THE SDRFS FUNDED?

The funding of the NDRF: The NDRF is funded through a National Calamity Contingent Duty levied on pan masala, chewing tobacco and cigarettes, and with budgetary provisions as and when needed. A provision exists to encourage any person or institution to make a contribution to the NDRF.

The 14th Finance Commission recommended changes to this structure once the cess was discontinued or subsumed within the Goods and Services Tax. However, the government, instead, decided to continue with the National Calamity Contingent Duty even in the GST regime.

The funding of the SDRF:

1. The SDRF corpus is contributed by the Union government and the respective State governments in a 75:25 ratio for general category States and 90:10 for Special Category States.
2. The allocation of the SDRF for each State is done by the Finance Commission, and the Centre contributes its specified share each financial year.
3. The Central share of SDRF is released in two equal instalments, in June and then in December.

What has been the trend in budgetary allocations to the NDRF and SDRFs?

The Union government has maintained a steady flow of funds to the NDRF each year, ranging from ₹5,690 crore in 2015-16 to a budgeted amount of ₹2,500 crore for the current financial year. In addition, the Centre has also been contributing to the SDRFs every year, amounting to ₹ 8,374.95 crore in 2016-17 and ₹7,281.76 crore in 2017-18.

HOW DO OTHER COUNTRIES CLASSIFY DISASTERS?

In the US, the Federal Emergency Management Agency (FEMA) coordinates the government’s role in disaster management. When an incident is of such severity and magnitude that effective response is beyond the capabilities of state and local governments, the Governor or Chief Executive of a tribe can request federal assistance under the Stafford Act. In special cases, the US President may declare an emergency without a request from a Governor. The Stafford Act authorises the President to provide financial and other assistance to local and state governments, certain private non-profit organisations, and individuals following declaration as a Stafford Act Emergency (limited) or Major Disaster (more severe).

WEAKNESSES IN CATEGORISATION AND FUNDING OF DISASTERS

When there is lack of institutionalized and standardized mechanisms for the categorization and determining the quantum of funds to states then it results into

1. Ad hocism in the process of determining the funds
2. Politics into who should get what? Since India is a federal state and the states are dependent on Centre, hence the decisions are politically motivated
3. It results into delay in sanctioning of relief materials to states like in case of COVID-19 the states have complained for scarcity of funds and delay in release of funds by the Centre.
4. It affects decentralized governance system
5. It promotes tensions and conflicts in union-states relations

CONCLUSION AND WAY FORWARD

To deal effectively with the disasters when they strike, it is essential to have a robust mechanism for categorization and immediate relief package to the states. Since India is a federal state in which the states are heavily dependent on the Centre, hence without an institutionalized standard for the transfer of disaster funds, there can be huge loss to human life, resources and will become a hurdle in making Indian society disaster resilient.

Hence, the government should improve the NDMA 2005 by taking the following steps:

1. There should be standards set for categorizations of disasters in consultation with state governments
2. The quantum of funds should be clearly linked with the levels of disasters categorized
3. The funds should be immediately transferred when the disaster strikes

The disaster management in India has improved since 2005 due to adoption of a new legal and institutional framework according to which the Centre has also come up with the National Disaster Management Policy 2009 and the National Disaster Management Plan 2016. The states have also taken similar steps. But still there is huge scope for improvement in disaster management in India based on the COVID-19 experiences and other recent disasters like Kerala flood and cyclones in South India.

INTERNATIONAL RELATIONS

1. INDIA ABSTAINS ON SRI LANKA VOTE AT UN HUMAN RIGHTS COUNCIL

THE CONTEXT: Recently India abstained from voting on a resolution on Sri Lanka at the UN Human Rights Council, while observing that Sri Lanka’s progress in implementing commitments on the 13th Amendment, meaningful devolution and early provincial elections remains “inadequate”.

THE EXPLANATION:

• According to India’s statement,“Achieving prosperity for all Sri Lankans and realising the legitimate aspirations of Tamils of Sri Lanka for prosperity, dignity and peace are two sides of the same coin”.
• As an immediate neighbour, India has “substantively contributed” to the relief, rehabilitation, resettlement and reconstruction process in Sri Lanka after 2009 and more recently provided “unprecedented assistance” to the people of Sri Lanka to face the challenges of the recent economic crisis, India had abstained last year, too (2021).
• Further, India has “taken note” of the Sri Lankan government’s commitments on the implementation of commitments “in the spirit of the 13th Constitutional Amendment”, meaningful devolution and the early conduct of provincial elections, Also, underscoring India’s long-standing concern over power devolution in Sri Lanka, an issue that also found mention in the resolution.

What is the legislation?

• It is an outcome of the Indo-Lanka Accord of July 1987, signed by the then Prime Minister Rajiv Gandhi and President J.R. Jayawardene, in an attempt to resolve Sri Lanka’s ethnic conflict that had aggravated into a full-fledged civil war, between the armed forces and the Liberation Tigers of Tamil Eelam, which led the struggle for Tamils’ self-determination and sought a separate state.
• The 13th Amendment, which led to the creation of Provincial Councils, assured a power sharing arrangement to enable all nine provinces in the country, including Sinhala majority areas, to self-govern.
• Subjects such as education, health, agriculture, housing, land and police are devolved to the provincial administrations, but because of restrictions on financial powers and overriding powers given to the President, the provincial administrations have not made much headway.
• In particular, the provisions relating to police and land have never been implemented. Initially, the north and eastern provinces were merged and had a North-Eastern Provincial Council, but the two were de-merged in 2007 following a Supreme Court verdict.

Why is the 13th Amendment significant?

• Till date, the 13th Amendment represents the only constitutional provision on the settlement of the long-pending Tamil question. In addition to assuring a measure of devolution, it is considered part of the few significant gains since the 1980s, in the face of growing Sinhala-Buddhist majoritarianism from the time Sri Lanka became independent in 1948.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

2. WHAT IS GRAP AND HOW ARE ITS MEASURES TO COMBAT DELHI-NCR’S AIR POLLUTION DIFFERENT THIS YEAR?

THE CONTEXT: Recently, the Commission for Air Quality Management (CAQM) that measures under ‘Stage-1’ of the Graded Response Action Plan (GRAP) will be enforced in the NCR with immediate effect.

THE EXPLANATION:

• The order came after Delhi’s AQI deteriorated to be in the ‘poor’ category .Other parts of the NCR, including Gurgaon, Noida and Greater Noida, also recorded ‘poor’ air quality.

What is the Graded Response Action Plan?

• GRAP is a set of emergency measures that kick in to prevent further deterioration of air quality once it reaches a certain threshold. Stage 1 of GRAP is activated when the AQI is in the ‘poor’ category (201 to 300), and for instance, the AQI in Delhi was 211.
• The second, third and fourth stages will be activated three days ahead of the AQI reaching the ‘very poor’ category (301 to 400), ‘severe’ category (401 to 450) and ‘severe +’ category (above 450) respectively. For this, the CAQM is relying on air quality and meteorological forecasts by the Indian Institute of Tropical Meteorology (IITM) and the India Meteorological Department (IMD).
• Measures being imposed under the previous categories will continue even when the subsequent category is activated, that is, if measures under Stage-2 are activated, measures under Stage-1 will continue to remain in place.

How is the GRAP different this year?

• The CAQM revised the Graded Response Action Plan earlier this year. The GRAP was first notified in January 2017 by the Ministry of Environment, Forest and Climate Change. This was based on a plan that was submitted by the Central Pollution Control Board (CPCB) in November 2016.
• According to the notification, the task of implementing the GRAP fell on the now dissolved Environment Pollution (Prevention and Control) Authority for the NCR. From 2021 onwards, the GRAP is being implemented by the CAQM.
• In the version of the GRAP that was notified in 2017, measures kicked in after pollution concentrations reached a certain level. This year, measures are pre-emptive and will kick in based on forecasts in an attempt to prevent the AQI from deteriorating further. The older version of the GRAP was enforced based only on the concentration of PM2.5 and PM10.
• This year, GRAP is being enforced based on the AQI, which takes other pollutants also into account, such as ozone, sulphur dioxide and oxides of nitrogen.

What are the measures that will be enforced this year?

• Some of the measures in the revised GRAP are also different this year. For the first time, it specifies that State governments in the NCR may impose restrictions on BS-III petrol and BS-IV diesel four wheelers under Stage-3, or when the AQI is likely to reach the ‘severe’ category.
• In the ‘severe +’ category, GRAP imposes a ban on plying of four-wheelers in Delhi and NCR districts bordering Delhi, except for BS-VI vehicles and those plying for emergency or essential services. Under this category, there will also be a ban on the movement of Delhi registered, diesel-operated medium and heavy goods vehicles in Delhi, with exceptions for those carrying essential commodities or providing essential services.
• Restrictions on some construction activities will also set in earlier in the revised GRAP. A ban on construction activities (except for those involving railways, projects of national security, hospitals, metro services, and linear public projects like highways, roads) will be imposed under the ‘severe’ category. In the previous plan, the construction ban was implemented only in the ‘severe +’ category.
• Construction activities on linear public projects like highways, roads, flyovers, pipelines and power transmission, will be banned under the ‘severe +’ category this year.

What are some other measures being considered

• Under the ‘severe +’ category, State governments may consider additional emergency measures like the closure of schools, plying of vehicles on an odd-even basis, and decide on allowing public, municipal and private offices to work on 50% strength and the rest to work from home.

What are citizens required to do?

• The revised GRAP also has a set of measures for the public to follow – under the ‘poor’ category, this includes keeping vehicle engines tuned, ensuring PUC certificates are updated and switching off vehicle engines at red lights. Under the ‘very poor’ category, it is suggested that citizens use public transport and replace air filters in their automobiles.
• Under the ‘severe’ category, a recommendation is made to work from home if possible, and not use coal and wood for heating. Under the ‘severe +’ category, GRAP advises people with chronic diseases and children and the elderly to avoid outdoor activities.

VALUE ADDITION:

About the Commission for Air Quality Management (CAQM):

• The Commission was first formed by an ordinance in October 2020.
• The erstwhile Environment Pollution (Prevention and Control) Authority, or EPCA had been dissolved to make way for the Commission.
• The Commission will be a statutory authority.
• The Commission will supersede bodies such as the central and state pollution control boards of Delhi, Punjab, Haryana, UP and Rajasthan.
• In 2021, the Parliament approved the Commission for Air Quality Management in National Capital Region and Adjoining Areas Bill.

Composition:

Chairperson: To be chaired by a government official of the rank of Secretary or Chief Secretary.

• The chairperson will hold the post for three years or until s/he attains the age of 70 years.
• It will have members from several Ministries as well as representatives from the stakeholder States.
• It will have experts from the Central Pollution Control Board (CPCB), Indian Space Research Organisation (ISRO) and Civil Society.

GOVERNMENT SCHEMES IN NEWS

3. ANIMAL ADOPTION SCHEME

THE CONTEXT: Recently, the National Zoological Park has come up with an amazing animal adoption scheme which will offer the animal lovers to participate in wildlife conservation. In this scheme, zoos offer the zoo animals/animal species in their collection to the general public for taking care of them.

THE EXPLANATION:

How does an Animal Adoption Scheme Work?

• To adopt an animal, there is a form available on the official website of National Zoological Park. Any interested individual can choose which animals would interest them and pay for their care by entering into an agreement with zoo management after filling up the application form. The payment may be paid by Account Payee Cheque, Demand Draft, Credit or Debit Card to the National Zoological Park, New Delhi.
• After the successful registration, the adapter will get a membership card mentioning his name and animal name. After getting the membership card, the adopter will be allowed to enter the zoo during visiting hours once every month on showing the card. It should be noted that visits of adopters may be stopped during any outbreak of a pandemic or zoonotic disease, etc.

What is the rate list for adopting animals?

• The rates for adopting animals will be depending on the species and the approval for the same is still awaited. The starting range for adopting birds can be from Rs. 700 and Rs 6,00,000  for lions, tigers, rhinos and elephants while the cost for adopting leopards is Rs. 3,60,000 per year.

What is the validity of an adoption membership card?

• According to the notice released by the zoo authorities, the adoption of zoo animals will be for one or two years which can be withdrawn but the payable amount will not be refunded. The revenue generated from the animal adoptions scheme will go back to the zoo on a quarterly basis for the welfare activities for the animals and its personnel.

THE PRELIMS PERSPECTIVE

4. WHAT IS MOONLIGHTING?

THE CONTEXT: In July 2022, Kotak Securities said in a study that at least 60% of 400 employees surveyed said they themselves had or knew someone who had engaged in moonlighting.

THE EXPLANATION:

What is meant by Moonlighting?

• Moonlighting or employees working for remuneration with entities other than their employers — has been a hot topic in recent months.  During the pandemic, those with desk jobs had more time on their hands and thus it was easier to take on a few projects outside of work.

What does the law say?

• Moonlighting is not defined in any of the statutes in India, no Constitutional Court has rendered a decision on the subject”.
• However, there are enactments that deal with double employment. Section 60 of the Factories Act deals with restriction on double employment stating that “No adult worker shall be required or allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed”. However, this enactment is applicable only to employees working in factories.
• There are State enactments which deal with employment of persons working in offices, banks, shops, etc. In Tamil Nadu, it is termed as “The Tamil Nadu Shops & Establishments Act, 1947”. However, there is no provision wherein dealing with dual employment.
• However, moonlighting is subject to law of the land. Experts refers to the Supreme Court’s observation in the case of Glaxo Laboratories (I) Limited vs Labour Court, Meerut and others. The apex court held that “The employer has hardly any extra territorial jurisdiction. He is not the custodian of general law and order situation nor the Guru or mentor of his workmen for their well-regulated cultural advancement.
• If the power to regulate the behavior of the workmen outside the duty hours and at any place wherever they may be was conferred upon the employer, contract of service may be reduced to contract of slavery.” This case was not specifically about moonlighting but the court’s observation gives us an idea as to how the law may view such cases. Moonlighting is subject to law of the land.
• The sphere of employment cannot be extended by the employer beyond working hours and outside his place of employment, which is the principle laid down in the above judgment. In other words, the employee can choose to arrange his affairs as he pleases beyond the working hours of the employer.

5. WHO WAS BEGUM SAMRU, THE NAUTCH-GIRL TURNED RULER OF SARDHANA

THE CONTEXT: The first week of October is said to mark the 200th anniversary of the completion of the Basilica of Our Lady of Graces, one of India’s minor basilicas situated in Sardhana in Uttar Pradesh.

THE EXPLANATION:

• It was constructed in 1822 by Begum Samru, a woman of humble origins that came to be popularly known as the only Catholic queen of India. For the bicentennial celebration of the church’s completion, the life and times of this remarkable figure that began her life as a concubine, and died as one of India’s richest and most powerful women.

Who was Begum Samru?

• Begum Samru (1750’s – 1836) was a figure that defied any fixed identity. She was a Muslim who converted to Catholicism, a nautch-girl (dancing girl) who became a warrior and an aristocrat, and was described by her contemporaries as dressing more like a man than a woman, sporting a dark turban and ever-puffing away at a hookah.
• She was a shrewd leader who was able to find a favourable position in the ever-dynamic political terrain of 18th century northern India. While she had first supported the waning Mughal empire, from the 1790’s the Begum began to provide service to the rising Marathas, before joining the British to ensure that she could maintain her landholding rights if they emerged victorious.
• Some sources claim that Begum Samru, birth name Farzana, was born to a second wife of a poor noblemen in present day Meerut, while others claim she was of Kashmiri descent. She spent her early years as a nautch (dancing girl) in a tawaif’s (courtesan) kotha (household) in Delhi.

MISCELLANEOUS

6. NOBEL PRIZE IN LITERATURE 2022: ANNIE ERNAUX, BEARING WITNESS TO WOMEN’S EXPERIENCES AND MEMORY

THE CONTEXT: The Nobel Prize for Literature 2022 has gone to French author Annie Ernaux, for, according to the Swedish Academy, “the courage and clinical acuity with which she uncovers the roots, estrangements and collective restraints of personal memory”.

THE EXPLANATION:

• Ernaux, 82, has seen a sharp increase in popularity in the English-speaking world since 2019, after her seminal work ‘The Years’, translated by Alison L Strayer, was shortlisted for the Man Booker international prize. Her book on her illegal abortion in the 1960s, ‘Happening’ (first published in 2001) has also been in the limelight after abortion rights were curtailed in the US.
• As the Nobel citation says, Ernaux’s work — ranging from a history of France to her first sexual experience and the shame around it to her mother’s illness and death to her abortion to her class-linked shame – meticulously mines her own memory and life experiences with “courage and clinical acuity”.
• Her treatment of her memories is unsparing but unembellished – she travels back to the moment she is writing about as completely as possible, without giving herself the benefit and wisdom of hindsight, putting on paper the raw vulnerability of the moment. As anchors, she uses songs, slogans, meals from the time she is writing about, which many say blurs the line between fiction and autobiography.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY

1.Consider the following statements about Pharmaceutical Export Promotion Council of India (Pharmexcil):

1. It is a statutory body.
2. It is set up by Ministry of Commerce and Industry for promotion of pharmaceutical exports from India.
3. Its headquarter is located in Hyderabad.

Which of the statements given above is/are correct?

a) 1 and 2 only

b) 2 only

c) 2 and 3 only

d) 1 and 3 only

Answer: C

Explanation:

Pharmaceutical Export Promotion Council of India (Pharmexcil)

• It is the authorized agency of the government of India for promotion of pharmaceutical exports from India.
• It was set up under the provisions of Foreign Trade Policy by the Ministry of Commerce and Industry in May 2004.
• Various pharmaceutical products, namely, bulk drugs, formulations, Biotech Products, Indian Systems of medicines, herbal products, diagnostics, clinical research, etc. are covered under its purview.
• Pharmexcil takes up several external trade promotion activities by organizing trade delegations outside India, arranging buyer-seller meetings, international seminars, etc.
• The agency’s headquarters is located in Hyderabad.