Note4Students
From UPSC perspective, the following things are important :
Prelims level: AUKUS
Mains level: Paper 2- Changing course of India foreign policy
Context
India plans to host an international conference on Afghanistan in the second week of November.
Is the Indian foreign policy changing course?
- All signs point towards a major calibration of the foreign-policy compass in recent weeks since the tumultuous events in Kabul two months ago culminated in the formation of an interim government by the Taliban.
- As regards the way forward in Afghanistan, India has opted to align with the Anglo-American camp in the international line-up arrayed against the Eurasian axis of Russia, China and Iran.
- While the US has an attitude of “You’re either with us, or against us”, vis-a-vis the Taliban, Russia, China, Iran and other neighbouring states give primacy to stability and security of Afghanistan.
- Being a discontented party, unsurprisingly, India would have more in common with the revisionist powers — the US and the UK.
- While the stated purpose of the participating countries is marking Afghanistan, it is the future that matters, being an epochal one that would transform the geopolitics of the region.
- Thus, Delhi has moved up to the centrestage of the Quad.
- In turn, the US accepts that the Quad ought to be “inclusive”. Global Britain is knocking at the door.
- On its part, Delhi has displayed its comfort level with the AUKUS.
- The historical Western experience of the EU and NATO moving in tandem to weaken a common enemy is being replicated with Asian characteristics.
- A dual containment strategy is unfolding against China and Russia.
- Thus, its short-lived dalliance with Iran is losing its gravitas and India has swung to the other extreme to identify with a new quadrilateral platform in West Asia, with Israel, UAE and the US.
- India shrugs its shoulders as its “time-tested” friend, Moscow, bemoans the Quad and AUKUS.
- This astonishing zigzagging in India’s regional policy takes the breath away.
Challenges for India
- India lives in its region and the Quad and AUKUS are of no help when it comes to Afghanistan.
- Pakistan and China are riding high in the Hindu Kush; Moscow and Beijing have moved close in Central Asia which Washington is having a hard time in dealing with.
- India’s much-touted “influence” in Kabul has turned out to be delusional.
- Its own capacity to shape future events is virtually nil. These are the hard realities.
Conclusion
With the conference where India hopes to create an equivalent of the vajrayudha of the ancient Vedas which would allow India to reclaim its rightful place in the Afghan pantheon of gods and demi-gods.
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From UPSC perspective, the following things are important :
Prelims level: Types of technologies in PV cells
Mains level: Paper 3- Adoption of new technologies in solar power sector
Context
Large-scale solar projects in Tamil Nadu have seen rapid growth in recent years. By embracing advances in solar technologies, India can continue to lead in this sector.
Factors driving growth
- In the past five years, the cumulative installed capacity witnessed a four-fold increase in Tamil Nadu to 4.4 GW, as of March 2021.
- High insolation level: Aiding this capacity addition is the State’s reasonably high insolation levels and matching solar potential, estimated at 279GW.
- Decline in price: The sharp decline in the prices for solar and resulting cost competitiveness is another factor.
- National target: Additionally, in response to the ambitious national targets and to spur sector specific development, Tamil Nadu released the Solar Policy of 2019, aiming for 9GW of solar installations by 2023.
Type of technology use for solar panel
- 1) Mono-crystalline Vs multi-crystalline panels: ‘First-generation’ solar cells use mono-crystalline and multi-crystalline silicon wafers.
- The efficiency of mono-crystalline panels is about 24%, while for multi-crystalline panels it is about 20%.
- Mono-crystalline cells are dominant today.
- Although mono-crystalline panels are priced higher than multi-crystalline ones, the difference is diminishing and will soon attain parity.
- This would result in mono panels being preferred over multi due to their higher efficiency, greater energy yield and lower cost of energy.
- 2) Bifacial solar cells: Newer technologies incorporating crystalline silicon focus on bifacial solar cells, capable of harvesting energy from both sides of the panel.
- Bifacials can augment the power output by 10-20%.
- Within this, the Passive Emitter and Rear Contact technology is predicted to gain popularity. However, it is yet to achieve price parity for large-scale deployment.
- 3) Thin-film technologies: It is classified as the ‘second generation of solar PVs.
- In addition to being used in solar farms and rooftops, thin films with their low thickness, light weight and flexibility are also placed on electronic devices and vehicles, power streetlights and traffic signals.
- Mainstream thin films utilise semiconductor chemistries like Cadmium Telluride with module efficiencies of around 19%.
- Other technologies include Amorphous Silicon and Copper Indium Gallium Di-Selenide.
- Nanocrystal and dye-sensitised solar cells are variants of the thin film technology. These are in early stages for large-scale commercial deployment
- However, the efficiency of thin films is lower than that of crystalline silicon.
- 4) Perovskite: These are grouped as ‘third generation’ and contain technologies such as perovskite, nanocrystal and dye-sensitised solar cells.
- Perovskites have seen rapid advances in recent years, achieving cell efficiency of 18%.
- They have the highest potential to replace silicon and disrupt the solar PV market, due to factors such as ease of manufacture, low production costs and potential for higher efficiencies.
- 5) Use of Graphene Quantum-dots: Graphene is made of a single layer of carbon atoms bonded together as hexagons.
- Solar cells made of graphene are of interest due to high theoretical efficiency of 60% and its super capacitating nature.
- Quantum-dot PVs use semiconductor nanocrystals exhibiting quantum mechanical properties capable of high efficiency of about 66%.
- However, both these are in the early stages of research.
Technologies to better integrate solar PVs into the grid
- These technologies include weather forecasting and power output prediction systems; operation monitoring and control systems; and scheduling and optimisation systems.
- Additionally, automatic systems have been developed for the smooth resolution of output fluctuations.
Way forward
- A portion of the budget for renewable energy targets should be set aside exclusively for new technologies.
- Grants and subsidies can also be provided for their adoption.
- Efforts must be taken to address gaps in research, development, and manufacturing capabilities in the solar sector through sector-specific investment and incentives.
- There must also be greater industry-academia collaborations and funding opportunities for startups.
- A comprehensive sector-specific skilling programme is also required for workers.
Conclusion
All these efforts would help the country become a global player in the solar power sector.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: EU
Mains level: Paper 2- EU Indo-Pacific strategy
Context
Last month, the EU released it “EU strategy for cooperation in the Indo-Pacific”. This document is very rich and needs to be analysed in the context of the rapprochement between the EU and India, which culminated in the June EU-India summit, a “turning point” according to some analysts.
Important takeaways from EU’s Indo-Pacific strategy
- The EU strategy in the Indo-Pacific appears to be over-determined by China’s expansionism.
- “The display of force and increasing tensions in regional hotspots such as in the South and East China Sea and in the Taiwan Strait may have a direct impact on European security and prosperity,” the document says.
- If security interests are highlighted in the beginning, they are rather low in the list of the objectives of the EU Indo-Pacific strategy, which are listed as: “Sustainable and inclusive prosperity; green transition; ocean governance; digital governance and partnerships; connectivity; security and defence; human security”.
- Many paragraphs of the document are dedicated to values, including human rights.
India does not figure prominently in the policy document
- In terms of partnerships, India does not figure very prominently.
- By contrast, ASEAN is presented as “an increasingly important partner for the EU”.
- However, India appears in the list of the countries which already have an Indo-Pacific strategy and with which the EU is interested in a deeper “engagement”, a list made of ASEAN, Australia, India, Japan, New Zealand, the Republic of Korea, the UK and US.
- However, the document does not mention the role India could play in value-chain diversification, a top priority of the EU since the Covid-19 pandemic in particular.
- Yet, India is mentioned few pages later in a similar perspective when it is said that the EU will help “low and middle-income Indo-Pacific partners to secure access to the Covid-19 vaccine through the Covax facility and through other means”.
- What the French see as India’s main asset, its strategic dimension, is not central in the EU document.
- India is listed as the EU’s first partner only in one area: “under the project Enhancing Security Cooperation in and with Asia (ESIWA), which covers counter-terrorism, cybersecurity, maritime security and crisis management.
- The pilot partners are India, Indonesia, Japan, the Republic of Korea, Singapore and Vietnam, with EU military experts already operating in Indonesia and in Vietnam.”
Understanding the German influence on the policy document
- Thus, the EU strategy for cooperation in the Indo-Pacific is more in tune with the German vision of the Indo-Pacific than with the French one.
- The fact that the German approach prevails in the EU document is a reflection of the influence of Berlin’s weltanschauung (worldview) in Europe — something Brexit has accentuated, Great Britain’s Indo-Pacific strategy being similar to France’s.
- But China’s attitude may force Germany — and the EU — to change their mind in the near future.
Conclusion
By and large, the Indo-Pacific strategy of the EU remains driven by economic considerations and India, whose main asset is geopolitical and even geostrategic, does not figure prominently in it.
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From UPSC perspective, the following things are important :
Prelims level: NPAs and related terms
Mains level: NPA Crisis
Gross Non-Performing Assets (NPAs) of banks are expected to rise to 8-9% this fiscal from 7.5% as on March 31, 2021 but they would still remain below the peak of 11.2% seen at the end of fiscal 2018.
What are Non-Performing Assets?
- For a bank, the loans given by the bank is considered as its assets.
- Any asset which stops giving returns to its investors for a specified period of time is known as Non-Performing Asset (NPA).
- So, if the principle or the interest or both the components of a loan is not being serviced to the lender (bank), then it would be considered as NPA.
Classification of NPAs in India
- According to the RBI, a NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
- Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.
- Substandard Assets: Assets which has remained NPA for a period less than or equal to 12 months.
- Doubtful Assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
- Loss Assets: As per RBI, loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.
NPAs of Agriculture Loans
In terms of Agriculture/Farm Loans, the NPA is defined as under:
- For short duration crop such as paddy, Jowar, Bajra etc. if the loan (instalment/interest) is not paid for 2 crop seasons, it would be termed as an NPA.
- For Long Duration Crops, the above would be 1 Crop season from the due date
Reasons for NPAs in India
Impact of NPA on Economy
- Depositors’ loss: Depositors do not get rightful returns and many times may lose uninsured deposits.
- High interest on lending: Banks may begin charging higher interest rates on some products to compensate NPA loan losses.
- Trust issues: Bad loans imply redirecting of funds from good projects to bad ones. Hence, the economy suffers due to loss of good projects and failure of bad investments
Steps taken to curb NPA
(A) By the Govt
- Mission Indradhanush:to make the working of public sector bank more transparent and professional in order to curb the menace of NPA in future.
- Insolvency and Bankruptcy Code: To make it easier for banks to recover the loans from the debtors.
- Stringent NPA recovery rules: The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act or SARFESI Act of 2002 was amended in 2016.
(B) By RBI
RBI introduced number of measures in last few years which include:
- Corporate Debt Restructuring (CDR) mechanism,
- Setting up a Joint Lenders’ Forum, providing banks to disclose the real picture of bad loans, asking them to increase provisioning for stressed assets,
Other terms related to NPAs
Write-off effect
- A loan write-off is a tool used by banks to clean up their balance-sheets.
- If a loan turns bad on the account of the repayment defaults for at least three consecutive quarters, the exposure (loan) can be written off.
- A loan write-off sets free the money parked by the banks for the provisioning of any loan.
Twin Balance Sheet
- It deals with two balance sheet problems. One with Indian companies and the other with Indian Banks.
- Debt accumulation on companies is very high and thus they are unable to pay interest payments on loans.
Four Balance Sheet Challenge
- In his paper named ‘India’s Great Slowdown’, Arvind Subramanian (former Chief Economic Advisor) mentions the new ‘Four balance sheet challenge’.
- It includes the original two sectors – infrastructure companies and banks, plus NBFCs and real estate companies.
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From UPSC perspective, the following things are important :
Prelims level: World Economic Outlook (WEO), IMF
Mains level: Impact of COVID on employment and economic growth
The International Monetary Fund (IMF) has unveiled its 2nd World Economic Outlook (WEO) Report.
About WEO Report
- The WEO is a report by the IMF that analyzes key parts of the IMF’s surveillance of economic developments and policies in its member countries.
- It also projects developments in the global financial markets and economic systems.
- The report comes out twice every year — April and October.
- It is based on a wide set of assumptions about a host of parameters — such as the international price of crude oil — and set the benchmark for all economies to compare one another with.
Key takeaways from the October 2021 WEO
- The central message was that the global economic recovery momentum had weakened due to the pandemic-induced supply disruptions.
- It is the increasing inequality among nations that IMF was most concerned about.
- The dangerous divergence in economic prospects across countries remains a major concern.
Reasons for the slowdown
There are two key reasons:
- Large disparities in vaccine access
- Differences in policy support
What about Employment?
Ans. There is a lag.
- Employment around the world remains below its pre-pandemic levels.
- This reflects a mix of negative output gaps, worker fears of on-the-job infection in contact-intensive occupations, childcare constraints, labour demand changes due to automation etc.
- The main concern is the gap between recovery in output and employment which is likely to be larger in emerging markets and developing economies than in advanced economies.
- Further, young and low-skilled workers are likely to be worse off than prime-age and high-skilled workers, respectively.
Implications for India
Ans. Reduce India’s growth momentum
- IMF has suggested that India’s economic recovery is gaining ground.
- Some sectors such as the IT-services sectors have been practically unaffected by Covid, while the e-commerce industry is doing brilliantly.
- However, the recovery in unemployment is lagging the recovery in output (or GDP).
- This matters immensely for India as it reflects jobless growth.
- India was already facing a deep employment crisis before the Covid crisis, and it became much worse after it.
- Lack of adequate employment levels would again drag down overall demand and affect the growth momentum.
Threats to growth momentum
- Usual unemployment: Even before the pandemic, India already had a massive unemployment crisis.
- Sector-wise recovery: India is witnessing a K-shaped recovery. That means different sectors are recovering at significantly different rates.
- Unorganized sector: A weak recovery for the informal/unorganized sectors implies a drag on the economy’s ability to create new jobs or revive old ones.
- Contact-based services: Such services which can create many more jobs, are not seeing a similar bounce-back.
How informal is India’s economy?
- A NSO report titled ‘Measuring Informal Economy in India’ gives a detailed account of informal Indian economy.
- It shows the share of different sectors of the economy in the overall Gross Value Added and the share of the unorganised sector therein.
- The share of informal/unorganised sector GVA is more than 50% at the all-India level, and is even higher in certain sectors.
- It creates a lot of low-skilled jobs such as construction and trade, repair, accommodation, and food services.
This is why India is more vulnerable.
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From UPSC perspective, the following things are important :
Prelims level: GM crops in India
Mains level: Issues with GM crops
The European Union has recalled some packaged food items which were made up of Indian GMO.
GM crops in India
The Genetic Engineering Appraisal Committee (GEAC) under Environment Ministry oversees the approval of GM Crops in India.
- Bt cotton: It is the only GM crop that has been approved for commercial cultivation in 2002.
- Bt Brinjal: Resistant to brinjal shoot fly, it was approved by GEAC in 2009. However due to 10 years moratorium imposed on GM crops by the Technical Expert Committee (TEC) appointed by the Supreme Court of India, its commercialization has stalled.
- GM Dhara Mustard Hybrid 11: DMH 11 developed by Delhi University is pending for commercial release as GEAC has advised to generate complete safety assessment.
However, unauthorized HtBt Cotton and Bt Brinjal are being grown commercially, with hundreds of growers blatantly defying the governmental ban.
What about GM Rice?
- GM rice is not grown commercially in India.
- However, multiple GM rice varieties have been approved for confined field trials.
- There seems a possibility of cross-contamination from such field trials directly or through seed leakages.
India’s rice exports
- India’s annual rice exports amount to 18 million tonnes worth ₹65,000 crore, and reach more than 75 countries.
What is the EU move?
- A European candy has recalled several batches of its product from the market due to the use of rice flour with genetically modified (GM) contamination that allegedly originated in India.
- The EU notification has identified the product as ‘Unauthorised genetically modified (p35S and tNos) rice flour from India’.
Impact of the EU move
- This has led to the loss of reputation of India and its agricultural market.
- With such a move by the EU, it is Indian farmers and exporters who have much to lose.
Threats posed by GM crops
- It is believed that consumption of genetically engineered foods can cause the development of diseases which are immune to antibiotics.
- Besides, as these foods are new inventions, not much is known about their long term effects on human beings.
- Genetically modified rice may potentially cause serious public health and environmental problems.
- Two major issues about GM rice are their tendencies to provoke allergic reactions and the uncertainty of gene transfers.
What can be done to reverse this?
- Ban on field trials of GM crops
- Slapping liability for illegal release of GMOs into the environment on developers
- Probe to identify the source of the GM rice contamination
Try answering this PYQ:
With reference to the Genetically Modified mustard (GM mustard) developed in India, consider the following statements:
- GM mustard has the genes of a soil bacterium that give the plant the property of pest-resistance to a wide variety of pests.
- GM mustard has the genes that allow the plant cross-pollination and hybridization.
- GM mustard has been developed jointly by the IARI and Punjab Agricultural University.
Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Post your answers here.
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From UPSC perspective, the following things are important :
Prelims level: Mount Manipur
Mains level: Not Much
The Union government has rechristened Mount Harriet, a historical tourist spot in the Andaman and Nicobar Islands, as ‘Mount Manipur’ to commemorate the1891 Anglo-Manipur war.
Manipur’s connection to Mount Harriet
- After the Anglo-Manipur War of 1891, several Manipuris who had fought the British in the war, including Maharaja Kulachandra Dhwaja Singh, were exiled to the British penal colony in the Andaman Islands.
- Since the cellular jail (Kalapani) was yet to be built, Kulachandra and the prisoners were kept on Mount Harriet, a hillock in what is now the Ferragunj tehsil of South Andaman district.
- 23 men, including King Kulachandra and his brothers, were “transported for life” to the Andamans.
- While some died there, Kulachandra was released and shifted elsewhere before his death.
This is why Mount Harriet is an important symbol of the Anglo-Manipur War of 1891.
About Anglo-Manipur War of 1891
- Considered an epoch in the history of Manipur, the Anglo-Manipur War was fought between the kingdom of Manipur and the British over a month in 1891.
- The battle was triggered by a coup in the palace of Manipur, which had been marked by internal factionalism in the years leading up 1891.
- The British government took advantage of the internal dissension among the princes of the royal family.
Battle for throne
- In 1886, when Surchandra inherited the throne from his father Chandrakirti Singh, the kingdom of Manipur was not under the British rule but had links with the crown through different treaties.
- However, Surchandra ascension to the throne was controversial and his younger brothers — Kulachadra, Tikendrajit — revolted against him.
- The1890 coup by the rebel faction deposed Surchandra, and proclaimed Kulachandra, the next oldest brother, the king.
- Surchandra fled to Calcutta seeking British help to reinstate him.
- Instead, the British dispatched James Quinton, the Chief Commissioner of Assam, with an army to Manipur.
- His mission was to recognise Kulachandra as the king under the condition that they be allowed to arrest the coup leader Crown Prince Tikendrajit and deport him from Manipur.
This aggressive imposition of British law in a sovereign state was rejected by the king, precipitating the Anglo-Manipuri War of 1891.
Its aftermath
- In the first phase of the war, the British surrendered and their officers — including Quinton — were executed in public.
- In the second phase, the British attacked Manipur from three sides, and finally capture the Kangla Fort in Imphal.
- Prince Tikendrajit and four others were hanged by the British, while Kulachandra, along with 22 others, were banished to the Andaman Islands.
Significance of the war
- Many say the war was described as a blow to British prestige.
- In India, it was viewed as being part of the general uprising against British rule in the country, soon after after the Revolt of 1857.
- The war led to Manipur officially becoming a princely state under the indirect rule of the British crown.
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