THE CONTEXT: The nation stands at the cusp of the new criminal laws coming into force on July 1; it is crucial to acknowledge the potential confusion and challenges that lie ahead in the administration of criminal justice. The expanded police powers and diluted civil liberties embedded in these laws cause concern. Despite some positive changes, the capacity of our institutions to implement these reforms remains questionable.

THE ISSUES:

• Institutional Preparedness: There is a significant concern about the readiness of the criminal justice institutions, including the police, courts, and prisons, to implement the new laws. There has been no reliable and independent assessment of institutional preparedness, which is crucial for effectively enforcing these laws.
• Expanded Police Powers: The new laws confer expanded powers on the police, including longer durations of police custody and vague definitions of offenses. For instance, Section 187 of the BNSS increases police custody limits from 15 days to 60 or 90 days, raising concerns about potential misuse and abuse of power.
• Dilution of Civil Liberties: There is an alarm over provisions that dilute civil liberties. Vague definitions of offenses such as “false and misleading information” and “acts endangering sovereignty, unity, and integrity of India” could lead to arbitrary and excessive use of police powers, thereby endangering civil liberties.
• Lack of Comprehensive Reform: Despite claims of decolonizing the criminal law, 75% of the existing provisions have been retained verbatim in the new laws. This retention questions the necessity of repealing the old laws instead of amending them. It is argued that true reform requires fundamental changes in the criminal justice institutions, which are still plagued by colonial legacies.
• Ambiguity in Legal Provisions: There is confusion regarding the applicability of the new laws to ongoing cases. The provisions for transitioning from old to new laws are unclear, leading to potential judicial confusion and contradictory judgments. This ambiguity could complicate the administration of justice.
• Training and Capacity Building: Police personnel and other stakeholders are inadequately trained and prepared. Given the short timeframe between the announcement and implementation of the new laws, the training provided has been minimal and insufficient to ensure a smooth transition. This lack of comprehensive training could hinder the effective enforcement of the new laws.

THE WAY FORWARD:

• Postpone Implementation and Conduct Thorough Review: Civil society groups have called for postponing the implementation of the new laws to allow for a comprehensive review and national discussion. This would ensure all stakeholders, including legal professionals, law enforcement agencies, and the judiciary, have adequate time to understand and prepare for the changes. The government can issue a notification to delay the implementation date. Organize public consultations and expert panels to review the laws and suggest necessary amendments.
• Enhance Training and Capacity Building: Training is crucial for effectively implementing new laws. The Bureau of Police Research and Development (BPR&D) has already conducted some training sessions, but given the scale of the changes, these are deemed insufficient. Develop comprehensive training modules and extend the training period to ensure all police, judicial, and prison officials are adequately prepared. Implement e-learning platforms and mobile applications like the Sangyaan App to provide continuous learning opportunities.
• Clarify Ambiguous Provisions: Legal experts and think tanks have highlighted the vagueness of specific provisions, such as those related to “false and misleading information” and “acts endangering sovereignty.” These ambiguities could lead to misuse and abuse of power. Amend the laws to provide clear definitions and guidelines for these provisions. Establish special committees within the judiciary to interpret and provide clarity on these provisions.
• Strengthen Procedural Safeguards: The new laws increase police powers and extend the duration of police custody, raising concerns about potential human rights abuses. Procedural safeguards are essential to protect civil liberties. Create independent oversight bodies to monitor the use of extended police powers. Introduce legal provisions that ensure the rights of the accused, such as mandatory legal representation and regular judicial reviews of extended custody.
• Conduct an Independent Audit of Institutional Preparedness: No reliable and independent assessment has been made of the preparedness of institutions like the police, courts, and prisons to implement the new laws. An independent audit would provide a clear picture of the current state of readiness. Engage independent auditing firms or academic institutions to conduct a thorough assessment. Publish the audit findings to ensure transparency and accountability.

THE CONCLUSION:

While the new criminal laws aim to modernize and decolonize India’s legal framework, they fail to deliver true systemic reform. The expanded police powers and vague definitions of offenses threaten civil liberties, and the lack of institutional readiness exacerbates these concerns. The implementation of these laws should be postponed until a thorough and independent audit of the preparedness of our criminal justice institutions is conducted. Only then can we ensure that the changes lead to a fair and just legal system.

UPSC PAST YEAR QUESTIONS:

Q.1 The Constitution of India is a living instrument with enormous dynamism capabilities. It is a constitution made for a progressive society. Illustrate the expanding horizons of the right to life and personal liberty. 2023

Q.2 Constitutionally guaranteed judicial independence is a prerequisite of democracy. Comment. 2023

MAINS PRACTICE QUESTION:

Q.1 Discuss the potential impact of India’s new criminal laws on civil liberties and institutional readiness. What measures should be taken to ensure a smooth transition and uphold human rights?

SOURCE:

https://indianexpress.com/article/opinion/columns/criminal-codes-threat-citizen-liberty-justice-guise-decolonisation-project-9418768/

THE CONTEXT: The Goods and Services Tax (GST) Council convened last week for the first time in nearly nine months, marking a significant session with 11 new State Ministers and a recalibrated NDA government at the Centre. The Council tackled a packed agenda, addressing industry feedback and procedural changes, and resolved to reconvene in August to continue deliberations. Despite the extensive agenda, the Council achieved consensus on several key issues, including tax relief measures and procedural simplifications to ease taxpayer burdens and reduce litigation.

OUTCOME OF THE MEETING:

• Tax Relief and Exemptions: The Council approved several tax relief measures, including the Exemption of GST on hostel accommodation costing up to ₹20,000 per month. Exemption of GST on railway services availed by passengers. A uniform 12% GST rate for packing cartons, milk cans, and solar cookers, eliminating classification differences based on material or technology.
• Waiver of Interest and Penalties: The Council waived interest and penalties on tax dues for the first three years of GST, provided the dues are paid by March 2025. This move aims to reduce the litigation burden and relieve taxpayers with pending dues from the initial years of GST implementation.
• Procedural Simplifications: Several procedural changes were approved to simplify compliance, such as the introduction of a new form for taxpayers to correct errors or oversights in previous returns and the reduction of the stipulated pre-deposits for filing appeals, including those to be filed with the upcoming GST Appellate Tribunals. Implement biometric-based Aadhaar authentication for all GST registrations in a phased manner to curb fraud and ease the registration process.
• Anti-Profiteering Clause: The Council ended the clause, which required firms to pass on any tax cut gains to customers. Due to its complex implementation, this clause has been a significant irritant for the industry. The Council also set a sunset date of April 1, 2025, for the receipt of new applications regarding anti-profiteering.
• Future Agenda and Rate Rationalization: The Council plans to revisit the 2021 plan to rationalize the multiple-rate GST structure, which has been in cold storage. This includes potentially merging some of the existing tax slabs and including items like petroleum and electricity into the GST net. The Council aims to simplify the tax structure and reduce business compliance-related issues.

THE WAY FORWARD:

• Rationalizing GST Rates: The GST Council should rationalize the multiple-rate GST structure to simplify the tax regime. This could involve merging the current slabs into fewer categories, such as 5%, 12%, and 18%, while eliminating the 28% slab for most goods and services, except luxury items and sin goods. A rationalized rate structure could boost compliance and increase revenue collections by reducing tax evasion incentives.
• Inclusion of Petroleum and Electricity under GST: Including petroleum and electricity under GST will create a uniform tax structure across the country, reduce the cascading of taxes, and benefit industries that rely heavily on these inputs. Bringing these items under GST could lead to more transparent pricing and reduce consumer tax burden, fostering economic growth.
• Waiver of Interest and Penalties: The Council’s decision to waive interest and penalties for tax dues from the first three years of GST implementation, provided they are paid by March 2025, should be extended to cover more recent periods and include more categories of taxpayers. This waiver offers much-needed relief to taxpayers and helps clear the backlog of disputes, allowing businesses to focus on growth.
• Biometric-Based Aadhaar Authentication: The phased implementation of biometric-based Aadhaar authentication for all GST registrations will curb fraud and streamline the registration process. Biometric authentication will also enhance the integrity of the GST system by preventing the creation of fake entities and fraudulent claims. This measure will strengthen the overall tax administration and reduce instances of tax evasion, thereby increasing the credibility of the GST regime.
• Extension of Input Tax Credit (ITC) Timeline: The timeline for availing Input Tax Credit (ITC) for past periods should be extended beyond the proposed November 30, 2021, to allow businesses more time to reconcile their accounts and claim due credits. Extending the ITC timeline will enable enterprises to correct past errors and ensure they are not unduly penalized for administrative oversights. This extension will help businesses manage their cash flows better and reduce the financial strain caused by retrospective tax adjustments.

THE CONCLUSION:

The recent GST Council meeting intends to simplify and streamline the seven-year-old indirect tax regime. While the full impact of these measures will depend on subsequent details, the Council’s commitment to reform and rationalization, including plans to revisit the multiple-rate GST structure and potentially bring excluded items like petroleum and electricity into the GST net, signals a proactive approach to enhancing the tax system.

UPSC PAST YEAR QUESTIONS:

Q.1 Explain the significance of the 101st Constitutional Amendment Act. To what extent does it reflect the accommodative spirit of federalism? 2023

Q.2 Explain the salient features of the Constitution (One Hundred and First Amendment) Act, 2016. Do you think it is productive enough to remove the cascading effect of taxes and provide a common national market for goods and services? 2017

Q.3 Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions? 2020

Q.4 Enumerate the indirect taxes subsumed in India’s Goods and Services Tax (GST). Also, comment on the revenue implications of the GST introduced in India in July 2017. 2019

MAINS PRACTICE QUESTION:

Q.1 The GST Council has recently indicated plans to revive the 2021 proposal to rationalize the multiple-rate GST structure and incorporate excluded items like petroleum and electricity. Discuss the potential benefits and challenges of such reforms for India’s indirect tax system and overall economy.

SOURCE:

https://www.thehindu.com/opinion/editorial/a-fresh-start-on-the-goods-and-services-tax-council-meet/article68340666.ece

TAG: GS 2: GOVERNANCE

THE CONTEXT: Union Minister inaugurated two significant Geoportals developed by the Indian Space Research Organization (ISRO): ‘Bhuvan Panchayat (Ver. 4.0)’ for rural land records and the ‘National Database for Emergency Management (NDEM Ver. 5.0)’ for disaster management.

EXPLANATION:

• These portals aim to leverage space technology for practical applications in rural development and disaster management, reflecting the ongoing reforms under Prime Minister Narendra Modi’s administration.

Bhuvan Panchayat Portal (Version 4.0)

• The Bhuvan Panchayat portal supports the “Space-based Information Support for Decentralized Planning (SISDP)” initiative.
• This portal is designed to empower citizens at the grassroots level, particularly within Panchayats, by providing high-resolution satellite imagery at a 1:10,000 scale across the country.
• It is a tool for visualizing and planning rural land records.

Benefits

• Decentralized Planning: Facilitates decentralized planning by providing accurate and up-to-date spatial information to local governance bodies.
• Empowerment: Empowers citizens by making land records accessible digitally, reducing dependency on local administrative bodies.
• Corruption Reduction: Enhances transparency in land record management, which can help reduce corruption at the grassroots level.
• Ease of Living: Promotes ease of living by streamlining land record access and management through digital means.

National Database for Emergency Management (NDEM Version 5.0)

• NDEM Ver. 5.0 is aimed at providing space-based inputs on natural disasters to aid in disaster risk reduction in India and neighboring countries.
• This portal integrates space technology to monitor, predict, and manage disaster-related information.
• Benefits
  • Disaster Risk Reduction: Provides crucial information for disaster risk reduction, enabling proactive measures to mitigate impacts.
  • Early Warning System: Enhances early warning systems for natural disasters, helping administrations prepare and respond effectively.
  • Land Use Monitoring: Monitors land use and land cover changes (LULC), aiding in environmental and urban planning.
  • Continuous Monitoring: Establishes a command center for continuous monitoring and management of disaster-related data.

Background and Vision

• Historical Context
  • Union Minister highlighted that the launch of these geoportals is part of the broader reforms introduced by Prime Minister over the past decade.
  • The efforts began with a brainstorming session in 2015-16, focusing on the applications of space technology for infrastructure development, planning, disaster risk reduction, land record management, weather forecasting, and agricultural development.
• ISRO’s Role and Achievements
  • The organization’s advancements have made space technology a household name.
  • ISRO’s initiatives align with the vision of Vikram Sarabhai, the founding father of India’s space program, who believed in the multifaceted impact of space technology on everyday life, including telemedicine, digital connectivity, and safety measures like identifying unmanned railway crossings.
• Government Policies and Private Sector Participation
  • Government’s commitment to integrating various services for the benefit of common citizens have been emphasized.
  • The significant increase in private sector participation in the space industry, growing from one startup in 2022 to over 200 in 2024, with nearly 1000 crore rupees of private investment has been highlighted.
• Public Engagement
  • The government’s decision to open Sriharikota’s gates during the Chandrayaan launch for public viewing exemplifies its efforts to engage the masses and showcase India’s prowess in the space sector.

SOURCE: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2029385

TAG: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: The third annual conference on MND ‘Awareness, Care and Management’ held at Nimhans in Bengaluru underscored the collaborative efforts of doctors and therapists in improving the quality of life for patients with Motor Neuron Disease.

EXPLANATION:

• While MND currently lacks a medical cure, the conference emphasized the effectiveness of symptomatic and supportive treatments in managing the condition and enhancing patient comfort and functionality.
• The conference facilitated direct interaction between doctors, therapists, and approximately 30 MND and ALS patients.
• This interaction aimed to gain firsthand insights into patient experiences and challenges, thereby guiding the development of more tailored care and management strategies.

Innovations and Practical Methods

• Therapists were equipped with both scientific knowledge and practical methods aimed at improving the daily lives of MND patients.
• This holistic approach ensures that caregivers can provide comprehensive support, addressing both physical limitations and emotional well-being.

Motor Neuron Disease (MND)

• Motor neuron diseases (MNDs) are a group of progressive neurological disorders that destroy motor neurons, the cells that control skeletal muscle activity such as walking, breathing, speaking, and swallowing.
• This group includes diseases such as amyotrophic lateral sclerosis, progressive bulbar palsy, primary lateral sclerosis, progressive muscular atrophy, spinal muscular atrophy, Kennedy’s disease, and post-polio syndrome.
• There’s no cure for MND, but there are treatments to help reduce the impact it has on a person’s daily life.
• Some people live with the condition for many years.
• MND can significantly shorten life expectancy and, unfortunately, eventually leads to death.

Symptoms of motor neurone disease

• Symptoms of motor neurone disease happen gradually and may not be obvious at first.
• Early symptoms can include:
  • weakness in your ankle or leg – you might trip, or find it harder to climb stairs
  • slurred speech, which may develop into difficulty swallowing some foods
  • a weak grip – you might drop things, or find it hard to open jars or do up buttons
  • muscle cramps and twitches
  • weight loss – your arms or leg muscles may have become thinner over time
  • difficulty stopping yourself from crying or laughing in inappropriate situations
• Motor neurone disease is an uncommon condition that mainly affects people in their 60s and 70s, but it can affect adults of all ages.
• It’s caused by a problem with cells in the brain and nerves called motor neurones.
• These cells gradually stop working overtime. It’s not known why this happens.

SOURCE: https://www.deccanherald.com/india/karnataka/bengaluru/doctors-brainstorm-over-quality-of-life-for-motor-neuron-disease-patients-3082413

TAG: GS 3: ECONOMY

THE CONTEXT: The Reserve Bank of India (RBI) recently released its financial stability report highlighting changes in banks’ Liquidity Coverage Ratio (LCR) and other key indicators affecting financial stability.

EXPLANATION:

Liquidity Coverage Ratio (LCR) and its Decline

• The LCR refers to the ratio of high-quality liquid assets (HQLA) held by banks to cover their net cash outflows over a 30-day stress period.
• It is a critical measure ensuring banks have sufficient liquidity to withstand financial stress.
• According to the RBI report, the LCR of banks in India declined from 135.7% in September 2023 to 130.3% in March 2024.
• This decline indicates a slight reduction in banks’ ability to cover their short-term obligations under stressed conditions.
• Private Banks: Specifically, private banks saw their LCR drop to 126.9% by March 2024, recovering from a low of 118.8% in the previous financial year’s third quarter.
• This highlights varying liquidity management challenges across different segments of the banking sector.

Factors Influencing LCR

• The RBI report identified weakening efficiency indicators among banks, attributed to rising staff costs and an increased cost-to-income ratio.
• Despite holding substantial liquidity buffers above regulatory requirements, banks’ LCR was affected negatively.

Regulatory Response and Future Outlook

• RBI’s Response
  • RBI Governor announced plans to review the LCR framework to enhance liquidity risk management by banks.
  • A draft circular is expected to outline these enhancements, aiming to strengthen financial resilience in the face of economic uncertainties.
• Credit-Deposit (CD) Ratio Analysis
  • The report also highlighted the credit-deposit (CD) ratio, a measure indicating the extent of funds deposited by customers that are extended as loans by banks.
  • Current CD Ratio: As of May 31, 2024, the incremental CD ratio for scheduled commercial banks stood at 90.8%, showing a high proportion of deposits being utilized for lending activities.
  • Correlation with SLR: The report noted a negative correlation between the CD ratio and banks’ excess Statutory Liquidity Ratio (SLR) holdings, suggesting potential implications for liquidity management strategies.
• Financial Stability Implications
  • The decline in LCR, coupled with a high CD ratio, underscores the importance of robust liquidity risk management frameworks for banks.
  • It also emphasizes the need for regulatory oversight to ensure adequate liquidity buffers while facilitating credit growth to support economic activities.

SOURCE: https://www.business-standard.com/finance/news/banks-lcr-declines-to-130-from-135-between-september-march-rbi-124062700925_1.html

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: India has achieved an outstanding outcome in the Mutual Evaluation conducted by the Financial Action Task Force (FATF) during 2023-24.

EXPLANATION:

• The Mutual Evaluation Report, adopted in the FATF plenary held in Singapore from June 26 to June 28, places India in the “regular follow-up” category.
• This distinction is shared by only four other G-20 countries and marks a significant milestone in India’s efforts to combat money laundering (ML) and terrorist financing (TF).

Technical Compliance and Achievements

• The FATF plenary concluded that India has reached a high level of technical compliance with its requirements.
• The country’s anti-money laundering (AML), countering the financing of terrorism (CFT), and counter-proliferation financing (CPF) regimes have shown good results. Key achievements include:
  • International Cooperation: Effective collaboration with international partners.
  • Access to Basic and Beneficial Ownership Information: Ensuring transparency in financial transactions.
  • Use of Financial Intelligence: Leveraging financial data to track and curb illicit activities.
  • Depriving Criminals of Their Assets: Successful efforts in asset recovery and freezing.

Areas for Improvement

• Despite the high level of compliance, the FATF observed that improvements are needed in some sectors:
  • Supervision and Implementation: Strengthening the supervision and implementation of preventive measures in certain non-financial sectors.
  • Prosecution Delays: Addressing delays in concluding ML and TF prosecutions.
  • Non-Profit Organisations (NPOs): Ensuring that CFT measures aimed at preventing the non-profit sector from being abused for TF are implemented in line with a risk-based approach, including outreach to NPOs on their TF risks.

Mitigating money laundering (ML) and terrorist financing (TF) Risk

• The FATF has recognized India’s efforts to mitigate risks arising from money laundering and terrorist financing.
• These efforts include:
  • Laundering of Proceeds: Tackling laundering of proceeds from corruption, fraud, and organized crime.
  • Digital Economy Transition: Effective measures to transition from a cash-based to a digital economy, reducing ML/TF risks through increased traceability of transactions.
• The implementation of the JAM (Jan Dhan, Aadhaar, Mobile) Trinity, along with stringent regulations on cash transactions, has significantly increased financial inclusion and digital transactions.
• These measures have made transactions more traceable, thereby mitigating ML/TF risks and enhancing financial inclusion.
• India’s performance in the FATF Mutual Evaluation has accrued significant advantages for the country’s growing economy.
• Demonstrating the overall stability and integrity of the financial system, good ratings from the FATF will lead to:
  • Better Access to Global Financial Markets: Enhanced ability to engage with international financial institutions.
  • Increased Investor Confidence: Boosted confidence from global investors.
  • Global Expansion of UPI: Facilitated global expansion of the Unified Payments Interface (UPI), India’s fast payment system.

Government Recognition and Future Commitment

• The government views this recognition from the FATF as a testament to India’s rigorous and effective measures implemented over the last decade to safeguard its financial system from ML/TF threats.
• This success sets a benchmark for countries in the region to effectively implement international standards on terrorist financing.
• Since 2014, the Indian government has enacted a series of legislative changes and bolstered enforcement efforts to tackle ML, TF, and black money.
• This multi-pronged strategy has brought these measures in line with international standards and has proven to be effective, yielding positive results.
• Indian authorities have successfully dismantled terror funding networks using actionable intelligence, stemming the flow of terror funding, black money, and narcotics.
• Over a two-year period, the Department of Revenue spearheaded India’s engagement with the FATF during the mutual evaluation process.
• This success was driven by the exceptional efforts of a diverse, multi-disciplinary team comprising representatives from various ministries, the National Security Council Secretariat (NSCS), state authorities, the judiciary, financial sector regulators, self-regulatory organizations, financial institutions, and businesses.
• India, a member of the FATF since 2010 and part of its Steering Group, remains committed to further strengthening its AML/CFT framework.
• The country will continue its collaboration with international partners to combat financial crimes, maintaining its proactive stance in the global fight against financial crimes.

Financial Action Task Force (FATF):

• The Financial Action Task Force (FATF) was established in 1989 by the G7 to examine and develop measures to combat money laundering.
• It originally included the G7 countries, the European Commission and eight other countries.
• Initially it was mandated to examine and develop measures to combat money laundering and in 2001, the FATF expanded its mandate to also combat terrorist financing.
• FATF mutual evaluations are in-depth country reports analysing the implementation and effectiveness of measures to combat money laundering and terrorist financing.
• The Financial Action Task Force (FATF) is commonly referred to as the world’s “terrorism financing watchdog”, which means it is the author — and custodian — of an international regime that works to ensure that the flows of money in the global financial system are not misused to fund terrorist activities.
• FATF maintains a “grey list” of countries that it watches closely. In essence, these are countries that have, in the assessment of the FATF, failed to prevent international money laundering and terrorist financing, and are, therefore, on a global watchlist for bad behaviour.
• Pakistan was the most important country on the list. After it (along with Nicaragua) was taken off the list, 23 countries remain under watch.
• Among these countries are the Philippines, Syria, Yemen, the United Arab Emirates, Uganda, Morocco, Jamaica, Cambodia, Burkina Faso, and South Sudan, and the tax havens of Barbados, Cayman Islands, and Panama.

What are countries on the grey list expected to do?

• FATF calls these countries “jurisdictions under increased monitoring”. Basically, these countries have to comply with certain conditions laid down by the FATF, failing which they run the risk of being “black listed” by the watchdog. Their compliance is periodically reviewed by the FATF.
• According to the FATF, when a jurisdiction is placed under increased monitoring, “it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to extra checks”.
• Specifically, these jurisdictions are now “actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing”.

SOURCE: https://www.thehindu.com/news/national/india-achieves-an-outstanding-outcome-in-fatf-mutual-evaluation-2023-24/article68344102.ece

TAG: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: Recent analysis of InSight’s data suggests that Mars experiences meteoroid impacts far more frequently than previously estimated.

EXPLANATION:

• NASA’s Mars InSight Lander, although retired, continues to yield significant scientific discoveries through its accumulated data.
• A recent study led by a Brown University researcher, published in Science Advances, suggests that Mars is bombarded by meteoroids far more frequently than previously thought.
• This discovery has profound implications for our understanding of Mars’ geological activity, surface age, and evolution.

Highlights of the Study

• An international team of scientists analyzed data from InSight’s highly sensitive onboard seismometer, identifying eight new impact craters not previously seen from orbit.
• The study estimates that Mars’ impact rates could be two to ten times higher than earlier calculations, depending on the size of the meteoroids.

Geological Implications

• The lead researcher emphasized that these findings might indicate that Mars is more geologically active than previously believed.
• This revelation could alter our understanding of the planet’s surface age and evolution.
• The study’s estimates are based on a limited number of examples, but the data suggests a much higher frequency of impacts than visible through imaging alone.

Crater Detection and Analysis

• The team used a combination of seismic data from InSight and imagery from NASA’s Mars Reconnaissance Orbiter to pinpoint and confirm new impact craters.
• Six of these craters were near InSight’s landing site, while two of the largest detected impacts were found farther away.
• These larger impacts, each creating craters about the size of a football field, occurred just 97 days apart, challenging previous expectations about the frequency of such events.

Revisions to Martian Cratering Models

• The frequent detection of new craters suggests a need to revise current Martian cratering models.
• These models must now account for higher impact rates, especially from smaller meteoroids.
• This revision is crucial not only for understanding Mars but also for reassessing the age and surface history of other planets in our solar system.

Impact on Solar System Studies

• The findings from InSight’s data could reshape our understanding of planetary surfaces throughout the solar system.
• The high frequency of impacts on Mars provides a comparative basis to understand similar processes on Earth and other planets.
• It also helps in assessing potential hazards to future exploration missions and understanding the population of impacting bodies in our solar system.

Future Research Directions

• To enhance the understanding of impact rates on Mars, further detailed orbital searches using machine learning techniques are planned.
• This approach could confirm more impacts and reveal additional seismic signals caused by impacts.
• The study also aligns with a companion paper in Nature Communications, which analyzes high-frequency seismic events detected by InSight, further supporting the findings of higher impact rates.

InSight Mission

• NASA’s InSight mission has been active from November 2018 to December 2022.
• It aimed at measuring the planet’s seismic activity.
• The lander collected valuable seismic data until its solar panels were covered in dust, preventing power generation.
• The mission provided new tools to detect impacts that might have otherwise gone unnoticed through orbital imaging alone.

SOURCE: https://phys.org/news/2024-06-analysis-nasa-insight-mars-meteoroids.html

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: The Reserve Bank of India (RBI), in collaboration with the Government of India, has introduced a revised Framework on Currency Swap Arrangement specifically for SAARC (South Asian Association for Regional Cooperation) countries.

EXPLANATION:

• This framework, applicable from 2024 to 2027, aims to provide financial stability and address short-term foreign exchange liquidity requirements or balance of payment crises within SAARC nations.

Historical Context and Objectives

• The SAARC Currency Swap Facility was initially launched on November 15, 2012.
• The primary objective was to offer a financial backstop for SAARC member countries facing short-term liquidity issues or balance of payment challenges.
• This facility served as an interim measure until more permanent solutions could be established.

Key Features of the 2024-2027 Framework

• INR Swap Window
  • A significant addition to the revised framework is the introduction of a separate INR (Indian Rupee) Swap Window.
  • This window includes various concessions aimed at supporting swap arrangements in Indian Rupees.
  • The total corpus allocated for the INR swap support stands at Rs 250 billion.
  • This new feature underscores India’s commitment to enhancing regional financial stability and promoting the use of the Indian Rupee within the region.
• US Dollar and Euro Swap Window
  • In addition to the INR Swap Window, the RBI will continue to offer swap arrangements in US Dollars and Euros.
  • This will be facilitated under a separate US Dollar/Euro Swap Window, with an overall corpus of US$ 2 billion.
  • This provision ensures that SAARC countries have access to major global currencies, thereby enhancing their ability to manage foreign exchange liquidity more effectively.
• Availability and Bilateral Agreements
  • The revised Currency Swap Facility is available to all SAARC member countries, provided they sign the necessary bilateral swap agreements with the RBI.
  • This requirement ensures that the participating countries adhere to the terms and conditions set forth by the RBI, thereby promoting mutual cooperation and financial stability within the SAARC region.

Benefits and Strategic Importance

• The revised framework offers several strategic benefits:
  • Enhanced Financial Stability: By providing a financial safety net, the framework helps SAARC countries manage short-term foreign exchange liquidity issues, thereby reducing the risk of balance of payment crises.
  • Promotion of Regional Cooperation: The framework fosters greater economic cooperation among SAARC nations, reinforcing the collective financial resilience of the region.
  • Encouragement of INR Usage: The introduction of the INR Swap Window promotes the use of the Indian Rupee within the region, potentially reducing dependence on other major currencies and fostering regional economic integration.
  • Access to Major Currencies: The continued provision of US Dollar and Euro swap arrangements ensures that SAARC countries have access to globally accepted currencies, enhancing their ability to manage international trade and financial transactions.

Currency Swap:

• A currency swap involves the exchange of interest—and sometimes of principal—in one currency for the same in another currency.
• Companies doing business abroad often use currency swaps to get more favorable loan rates in the local currency than if they borrowed money from a local bank.
• Considered to be a foreign exchange transaction, currency swaps are not required by law to be shown on a company’s balance sheet.
• Interest rate variations for currency swaps include fixed rate to fixed rate, floating rate to floating rate, or fixed rate to floating rate.

SAARC (South Asian Association for Regional Cooperation)

• The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization and geopolitical union of states in South Asia.
• Its member states are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
• SAARC comprises 3% of the world’s land area, 21% of the world’s population and 5.21% (US$4.47 trillion) of the global economy, as of 2021.
• SAARC was founded in Dhaka on 8 December 1985.
• Its secretariat is based in Kathmandu, Nepal. The organization promotes economic development and regional integration.
• It launched the South Asian Free Trade Area in 2006.
• SAARC maintains permanent diplomatic relations at the United Nations as an observer and has developed links with multilateral entities, including the European Union.
• However, due to the geopolitical conflict between India and Pakistan and the situation in Afghanistan, the organization has been suspended for a long time, and India currently cooperates with its eastern neighbors through BIMSTEC.

SOURCE: https://economictimes.indiatimes.com/news/economy/policy/rbi-announces-saarc-currency-swap-framework-for-2024-27/articleshow/111319067.cms?from=mdr

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: The UN Office on Drugs and Crime (UNODC) launched the World Drug Report 2024, highlighting the mounting harms associated with global drug issues.

EXPLANATION:

• The report details the proliferation of new synthetic opioids, record levels of drug supply and demand, and the ensuing rise in drug use disorders and environmental damage.

Highlights of the report

• The report reveals a significant increase in the number of drug users worldwide, reaching 292 million in 2022—a 20% rise over the past decade.
• Cannabis remains the most widely used drug with 228 million users, followed by opioids (60 million), amphetamines (30 million), cocaine (23 million), and ecstasy (20 million).
• The emergence of nitazenes, a group of synthetic opioids more potent than fentanyl, has led to an increase in overdose deaths, especially in high-income countries.
• Despite the growing number of drug users, treatment accessibility remains alarmingly low.
• Approximately 64 million people suffer from drug use disorders, but only one in 11 receive treatment.
• The disparity is even more pronounced among women, with only one in 18 women with drug use disorders receiving treatment compared to one in seven men.

Criminal Justice and Drug Offences

• In 2022, about 7 million people were in contact with law enforcement for drug-related offences, with two-thirds due to drug use or possession.
• Additionally, 2.7 million people were prosecuted, and over 1.6 million were convicted globally for drug offences.
• The criminal justice response varies significantly across regions, reflecting different legal frameworks and enforcement priorities.
• The report includes special chapters addressing critical issues such as the impact of the opium ban in Afghanistan, synthetic drugs and gender, cannabis legalization impacts, the psychedelic “renaissance,” the right to health for drug users, and the linkage between drug trafficking and other illicit activities in the Golden Triangle.

Drug Trafficking and Organized Crime

• Drug trafficking, particularly in the Golden Triangle, is linked to other illegal economies, including wildlife trafficking, financial fraud, and illegal resource extraction.
• These activities contribute to environmental degradation through deforestation, toxic waste dumping, and chemical contamination.
• Displaced, poor, and migrant communities suffer the most, often forced into opium farming or illegal extraction to survive, leading to debt entrapment and increased drug use.

Cocaine Production and its Consequences

• Cocaine production reached a new high of 2,757 tons in 2022, a 20% increase from 2021.
• Coca bush cultivation also rose by 12% to 355,000 hectares.
• This surge has led to increased violence in supply chain countries, such as Ecuador and Caribbean nations, and heightened health risks in destination countries, including Western and Central Europe.

Impact of Cannabis Legalization

• As of January 2024, Canada, Uruguay, and 27 jurisdictions in the United States have legalized cannabis for non-medical use.
• This legalization has accelerated harmful use and diversified cannabis products, many with high-THC content.
• In Canada and the US, hospitalizations for cannabis use disorders and psychiatric issues related to cannabis use have increased, particularly among young adults.

The Psychedelic Renaissance

• Interest in the therapeutic use of psychedelics for mental health disorders is growing, but clinical research has not yet established scientific guidelines for medical use.
• The “psychedelic renaissance” has led to increased commercial interest and broad access to unsupervised, quasi-therapeutic, and non-medical use of psychedelics.
• This trend risks outpacing scientific evidence and guidelines, potentially compromising public health and increasing health risks.

Afghanistan’s Opium Ban

• The opium production ban in Afghanistan led to a 95% decrease in production in 2023, resulting in a 74% global decline in opium production.
• This dramatic drop has impoverished Afghan farmers and enriched traffickers.
• Long-term impacts include potential changes in heroin purity, increased use of other opioids by heroin users, and a rise in demand for opiate treatment services in transit and destination countries.

Right to Health for Drug Users

• The report emphasizes that the right to health is a universally recognized human right, applicable to all individuals regardless of drug use status or incarceration.
• This right extends to drug users, their families, and communities, underscoring the need for equitable health care access and support.

United Nations Office on Drugs and Crime (UNODC)

• The United Nations Office (UNO) on Drugs and Crime (UNODC) is a United Nations office that was established in 1997 as the Office for Drug Control and Crime Prevention by combining the United Nations International Drug Control Program (UNDCP) and the Crime Prevention and Criminal Justice Division in the United Nations Office at Vienna, adopting the current name in 2002.
• It relies on voluntary contributions, mainly from governments, to carry out the majority of our work.
• Its headquarters is in Vienna, Austria
• Functions of UNODC:
  • It works to educate people throughout the world about the dangers of drug abuse.
  • Strengthen international action against illicit drug production and trafficking and drug-related crime.
  • It also works to improve crime prevention and assist with criminal justice reform in order to strengthen the rule of law, promote stable and viable criminal justice systems and combat the growing threats of transnational organized crime and corruption.
  • In 2002, the UN General Assembly approved an expanded programme of activities for the Terrorism Prevention Branch of UNODC. The activities focus on providing assistance to States, on request, in ratifying and implementing the eighteen universal legal instruments against terrorism.

SOURCE: https://www.unodc.org/unodc/en/press/releases/2024/June/unodc-world-drug-report-2024_-harms-of-world-drug-problem-continue-to-mount-amid-expansions-in-drug-use-and-markets.html

TAG: GS 3: ECONOMY

THE CONTEXT: The World Inequality Lab’s recent report, “Towards Tax Justice and Wealth Redistribution in India,” reveals a significant rise in economic disparities in India, highlighting the concentration of wealth among the upper castes and the widening gap between the rich and the poor.

EXPLANATION:

• This report underscores the deep-rooted caste-based inequalities in wealth distribution and the increasing economic divide.

Wealth Concentration Among Upper Castes

• The report indicates that nearly 90% of India’s billionaire wealth is controlled by the upper castes (UCs).
• Specifically, 88.4% of billionaire wealth is held by UCs, while the Scheduled Tribes (STs), among the most marginalized communities, have no representation among the country’s wealthiest individuals.
• This disparity is further emphasized by data from the All-India Debt and Investment Survey (AIDIS) for 2018-19, which shows that UCs hold nearly 55% of the national wealth.
• This stark contrast highlights the entrenched economic inequalities rooted in India’s caste system.

Caste and Economic Opportunities

• Caste continues to play a significant role in determining access to essential resources such as education, healthcare, social networks, and credit, all crucial for entrepreneurship and wealth creation.
• Historically, Dalits and other marginalized communities were restricted from owning land in many regions, severely limiting their economic progress.
• The “State of Working India, 2023” report by Azim Premji University also notes that Scheduled Castes (SCs) and STs are underrepresented as enterprise owners relative to their workforce participation.
• SCs constitute 19.3% of the workforce but only 11.4% of enterprise owners, while STs make up 10.1% of the workforce but only 5.4% of enterprise owners.

Wealth Inequality Beyond Billionaires

• Wealth inequality extends beyond the billionaire class.
• According to the National Family Health Survey, only 12.3% of SCs and 5.4% of STs are in the highest wealth quintile, while over 25% of SCs and 46.3% of STs fall into the lowest wealth category.
• The Other Backward Classes (OBC) community has 16.3% of its population in the lowest wealth category and 19.2% in the highest wealth category.
• These statistics underscore the pervasive economic disparities across different caste groups in India.

Historical Context and Current Trends

• India’s income and wealth inequality, which saw a decline post-independence, began to rise in the 1980s and has surged since the 2000s.
• Between 2014-15 and 2022-23, the increase in top-end inequality has been particularly striking, with the top 1% controlling over 40% of total wealth in India. This figure has increased significantly from 12.5% in 1980.
• The top 1% also earn 22.6% of total pre-tax income, up from 7.3% in 1980.
• This dramatic rise in inequality has led to the phenomenon known as the “Billionaire Raj,” where the economic divide in India has become more pronounced than during the British Raj.

Income and Wealth Distribution

• To join the top 10% of income earners in India, one needs to earn approximately Rs 2.9 lakhs per year, and Rs 20.7 lakhs to be in the top 1%.
• In stark contrast, the median adult earns only about Rs 1 lakh, while the poorest have virtually no income.
• The bottom 50% of the population earns only 15% of the total national income.
• In terms of wealth, an adult needs Rs 21 lakhs to be in the wealthiest 10% and Rs 82 lakhs to enter the top 1%.
• The median adult holds approximately Rs 4.3 lakhs in wealth, with a significant portion of the population owning almost no wealth.
• The bottom 50% holds only 6.4% of the total wealth, while the top 1% owns 40.1%.
• Notably, the top 0.001% alone controls 17% of the total wealth, meaning fewer than 10,000 individuals hold nearly three times the total wealth of the entire bottom 50% (46 crore individuals).

World Inequality Lab

• The World Inequality Lab (WIL) is a research center at the Paris School of Economics.
• The WIL aims to promote research on global inequality dynamics.
• It works in close coordination with a large international network of researchers (over one hundred researchers covering nearly seventy countries) contributing to the database.

SOURCE: https://www.ndtv.com/india-news/world-inequality-report-over-85-of-indian-billionaires-from-upper-castes-none-from-scheduled-tribes-5974949/amp/1#amp_tf=From%20%251%24s&aoh=17195488687956&csi=0&referrer=https%3A%2F%2Fwww.google.com

TAG: GS 3: ECOLOGY AND ENVIRONMENT

THE CONTEXT: The mainland serow (Capricornis sumatraensis thar), a unique antelope-like mammal typically found in Bhutan, has been recorded at the lowest elevation ever observed in western Assam’s Raimona National Park.

EXPLANATION:

• This significant finding, along with photographic evidence, has been documented in the Journal of Threatened Taxa, marking a notable event for biodiversity conservation in the region.

Himalayan serow (Capricornis sumatraensis thar)

• The Himalayan serow (Capricornis sumatraensis thar), also known as the thar is a subspecies of the mainland serow native to the Himalayas.
• It was previously considered its own species, as Capricornis thar.
• Traditionally, the mainland serow is known to inhabit regions at altitudes between 200 and 3,000 meters above mean sea level.
• However, this recent observation recorded the animal at a mere 96 meters above mean sea level, far beyond its usual altitudinal range and closer to human habitation than previously documented.
• It is the official state animal of the Indian state of Mizoram.
• Capricornis sumatraensis is listed in CITES Appendix I.
• It has been categorized as Vulnerable as per the IUCN Red List.

Significance of the Discovery

• This discovery in Raimona National Park is noteworthy for several reasons:
  • Conservation Implications:
    • The presence of the mainland serow at such a low elevation and near human habitation indicates a potential expansion or shift in habitat range, which can be crucial for developing effective conservation strategies.
  • Biodiversity Indicator:
    • The serow’s presence signifies good ecological health in Raimona National Park, indicating that the conservation efforts and habitat restoration initiatives are yielding positive results.
  • Habitat Restoration:
    • Raimona National Park, previously affected by poaching and habitat degradation due to logging, is now showing signs of recovery.
    • The sighting of the serow supports ongoing efforts to rehabilitate and conserve the region’s biodiversity.

Conservation Challenges

• Despite the positive implications of this discovery, the mainland serow faces several challenges:
  • Habitat Loss: Fragmentation and destruction of natural habitats due to human activities remain significant threats.
  • Poaching: The species is still vulnerable to poaching for bushmeat and other purposes.
  • Data Deficiency: A lack of reliable data on the mainland serow’s population and distribution complicates the formulation of effective conservation measures.

Conservation Efforts and Future Actions

• The Assam government declared the 422 sq. km area of Raimona a national park on June 8, 2021, a move aimed at bolstering conservation efforts.
• The recent sighting of the mainland serow underscores the need for continued and enhanced conservation efforts.
• These efforts include:
  • Species Population Recovery: Focused initiatives to increase the population of the mainland serow.
  • Habitat Restoration: Ongoing projects to restore degraded habitats within the national park.
  • Anti-Poaching Measures: Strengthening anti-poaching laws and enforcement to protect vulnerable species.
  • Research and Data Collection: Comprehensive studies to gather reliable data on the mainland serow and other species to inform and improve conservation strategies.

Raimona National Park

• Raimona National Park is located in the Kokrajhar district of Assam, India.
• It was declared a national park on June 5, 2021, by the announcement of Assam’s Chief Minister on the occasion of World Environment Day at Gandhi Mandap, Guwahati.
• The park is spread across Gossaigaon and Kokrajhar subdivisions of Kokrajhar district of Bodoland Territorial Region.
• It is a part of a contiguous forest patch with an area of 422 square kilometers (163 square miles) covering the northern part of the notified Ripu Reserve Forest (508.62 square kilometers (196.38 square miles)), which forms the westernmost buffer to Manas Tiger Reserve in the foothills of Eastern Himalaya Biodiversity Hotspot 13.
• The park is home to a variety of wildlife including tiger, clouded leopard, golden langur, Indian gaur, Asian elephant, spotted deer, wild buffalo, and hornbill.

SOURCE:  https://www.thehindu.com/sci-tech/energy-and-environment/antelope-like-mammal-from-bhutan-recorded-at-lowest-elevation-in-assam/article68339890.ece

TAG: GS 3: ECOLOGY AND ENVIRONMENT

THE CONTEXT: The Borneo elephants, indigenous to the forests of Sabah in Malaysian Borneo and Kalimantan in Indonesian Borneo, have been classified as ‘Endangered’ on the International Union for Conservation of Nature’s (IUCN) Red List as of June 27, 2024.

EXPLANATION:

• This classification highlights the critical need for immediate conservation efforts to prevent their extinction.

Current Population and Habitat Loss

• A team from IUCN and the Asian Elephant Specialist Group (AsESG) utilized satellite tracking to estimate the current population of Borneo elephants at approximately 1,000 individuals, with around 400 being breeding adults.
• Over the past four decades, more than half (60%) of their forest habitat has been destroyed primarily due to logging and the expansion of commercial oil palm plantations.
• Additionally, linear infrastructures such as roads and human settlements have disrupted the elephants’ ability to move between their three core habitat areas, further exacerbating their plight.

Human-Elephant Conflict and Poaching

• The encroachment of human activities into elephant habitats has led to frequent human-elephant conflicts.
• Elephants often raid crops, resulting in confrontations with local communities, which sometimes end in the killing of these animals.
• Furthermore, Borneo elephants are targeted by poachers for their ivory and hide, adding another layer of threat to their survival.

Importance of the IUCN Red List Classification

• IUCN Red List plays a vital role in assessing extinction risk at various geographic levels.
• The classification of the Borneo elephant population as ‘Endangered’ serves as a crucial case study for refining conservation strategies, especially under the commitments of the Kunming-Montreal Global Biodiversity Framework.
• Detailed local assessments like these contribute to broader conservation efforts and help tailor interventions to specific regional needs.

Borneo Elephants

• Borneo elephants are distinguished by their smaller size, with males reaching approximately 2.5 meters in height, compared to 3 meters for mainland Asian elephants.
• They also have uniquely shaped skulls, resulting in a wider face.
• These distinct physical and genetic traits warrant their recognition as a separate subspecies, Elephas maximus borneensis, an Evolutionary Significant Unit critical for conserving both local and global biodiversity.
• For a long time, the origins of Borneo elephants puzzled scientists.
• Two primary hypotheses existed: one suggesting they were gifts from the ruler of Java to the Sultan of Sulu, and the other proposing that they are native to Borneo.
• Genetic studies led by elephant ecologist indicated that these elephants were introduced to Borneo but have since become genetically distinct from other Asian elephants.
• Further research by the IUCN-AsESG team supported this, noting their separation from other populations tens to several hundreds of thousands of years ago.

Conservation Efforts and Challenges

• The recognition of Borneo elephants as a separate subspecies emphasizes the need for targeted conservation efforts.
• The urgency of collaborative actions to manage human-elephant conflict, prevent further habitat loss, and ensure the survival of these unique pachyderms has been highlighted.
• Both Malaysia and Indonesia have developed action plans for Borneo elephant conservation, but these face numerous challenges.
• Effective measures include protecting and expanding forest habitats, supporting local communities to minimize conflicts, and enforcing anti-poaching laws.
• Establishing wildlife corridors through extensive oil palm plantations is also crucial, allowing elephants to roam freely, access more food, and maintain genetic diversity.

SOURCE: https://www.downtoearth.org.in/news/wildlife-biodiversity/borneo-elephants-the-diminutive-pachyderms-of-sabah-and-kalimantan-are-now-endangered-on-iucn-s-red-list-96897