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US policy wise : Visa, Free Trade and WTO

Lay-off Indian techies scrambling for options to stay in US

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Lay-off impact on Indian techies

Thousands of Indian IT professionals in the US, who have lost their jobs due to the series of recent layoffs at companies like Google, Microsoft and Amazon, are now struggling to find new employment within the stipulated period under their work visas.

Recent layoff is US

  • Nearly 200,000 IT workers have been laid off since November last year, including some record numbers in companies like Google, Microsoft, Facebook and Amazon.
  • As per some industry insiders, between 30 to 40 per cent of them are Indian IT professionals, a significant number of whom are on H-1B and L1 visas.

What one means by Lay-Off?

  • A layoff is the temporary or permanent termination of employment by an employer for reasons unrelated to the employee’s performance.
  • Employees may be laid off when companies aim to cut costs, due to a decline in demand for their products or services, seasonal closure, or during an economic downturn.
  • When laid off, employees lose all wages and company benefits but qualify for unemployment insurance or compensation (typically in USA).

Why do companies resort to layoffs?

  • Cost reduction: One of the main reasons why workers get laid off is because the company decides to cut back on costs in some way. The need can arise from the fact that the company is not making enough profits to cover its expenses or because it needs substantial extra cash to address paying off debt.
  • Staffing redundancies: Layoffs also occur when a company needs to eliminate some positions due to over-staffing, outsourcing, or a modification to the roles.  A company may want to eliminate redundant positions in order to make its operations more efficient.
  • Relocation: Moving the company’s operations from one area to another can also bring about the need to let go of some workers. Shutting down the initial location will not only affect the workers who get laid off but the surrounding community’s economy as well.
  • Merger or buyout: If a business is bought out or decides to merge with another, the change might lead to a change in the company’s leadership and corporate direction. If there’s new management, the chances are that they’ll come up with new goals and plans, and this can lead to layoffs.

Immediate triggers of Lay-Off

  • Pandemic Boom: During the pandemic, there was a surge in demand as people were in lockdown and they were spending a lot of time on the internet. The overall consumption saw an upsurge following which the companies went to increase their output to meet the market requirements.
  • Over hiring during pandemic: In order to meet the demands, many tech companies went on a hiring spree anticipating the boom to continue even after the pandemic. However, as the curbs were eased and people started stepping out of their homes, consumption fell, resulting in heavy losses to these big tech companies. Some of these resources were hired at a higher cost because of the sudden upsurge in demand.
  • Fear of recession: As the demand is coming back to pre-Covid levels and seeing the debt bubble almost about to burst and fearing recession, these companies are cutting down their costs by closing down low-performing projects and laying off the excess and high-cost resources they hired to accelerate growth.
  • Russia-Ukraine War: The war has also contributed to these layoffs as it has made the market more volatile. This is clearly visible from stock market volatility.
  • Inflation: Rising inflation has also impacted several world economies severely leading to a crisis in the job market as well. The world is currently hitting a reset button to overcome all these ups and downs.

Various US Visa Programs

1) H-1B visa

  • What is it: The H-1B visa category covers individuals who “work in a speciality occupation, engage in cooperative research and development projects administered by the US Department of Defense or are fashion models that have national or international acclaim and recognition.”
  • Who’s covered: The H-1B is most well known as a visa for skilled tech workers, but other industries, like health care and the media, also use these visas.

2) H-2B visa

  • What it is: According to USCIS, the H-2B program allows US employers or agents “to bring foreign nationals to the United States to fill temporary non-agricultural jobs.”
  • Who’s covered: They generally apply to seasonal workers in industries like landscaping, forestry, hospitality and construction.

3) J-1 visa

  • What it is: The J-1 visa is an exchange visitor visa for individuals approved to participate in work-and-study-based exchange visitor programs in the United States.

    Who’s covered:
    The impacted people include interns, trainees, teachers, camp counsellors, au pairs and participants in summer work travel programs.

4) L-1 visa

  • What it is: The L1 Visa is reserved for managerial or executive professionals transferring to the US from within the same company, or a subsidiary of it. The L1 Visa can also be used for a foreign company opening up US operations.
  • Who’s covered: Within the L1 Visa, there are two subsidiary types of visas
  1. L1A visa for managers and executives.
  2. L1B visa for those with specialized knowledge.

Why these matters?

  • A significantly large number of Indian IT professionals, who are on non-immigrant work visas like H-1B are L1.
  • They are now scrambling for options to stay in the US to find a new job in the stipulated few months’ time that they get under these foreign work visas after losing their jobs and change their visa status as well.

Impacts of Lay-offs

  • Cut-throat market competition: Layoffs are a painful but expected fact of life in a market economy exposed to competition and trade.
  • Immense loss to the workers: Layoffs can be damaging psychologically as well as financially to the affected workers as well as their families, communities, colleagues, and other businesses.
  • Decreased customer loyalty: When a company lays off its employees it sends out a message to customers that it is undergoing some sort of crisis.
  • Emotional Distress: The person who is laid off suffers the most distress, but remaining employees suffer emotionally as well. The productivity level of employees who work in fear is likely to go down.

Lessons for India

  • Indian startups grew at a notoriously faster pace than its neighboring regions.
  • But the layoffs are a sobering reminder that the bigger the startups became, the harder they fell.
  • Just because a startup had touched a sky-high valuation did not immediately mean its employees’ jobs were insured.

Way forward

  • Voluntary retirement program: This enables individuals to transition to retirement smoothly.
  • Cut back on the extras: If a company is laying off workers to reduce costs, it can look for other avenues of saving money. For example, the company managers can freeze additional hiring, reduce or remove bonuses.
  • Consider a virtual office: Another way to cut down on costs is to keep only the most important staff onsite and send the rest of the workers home to work remotely.
  • Offer more unpaid time off: A company owner can also save money by offering more unpaid time off rather than eliminating workers’ positions.

 

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International Space Agencies – Missions and Discoveries

Bimodal Nuclear Propulsion can send missions to Mars in 45 days

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bimodal Nuclear Propulsion

Mains level: Not Much

nuclear

NASA is planning to send mission to Mars in 45 days using the Bimodal Nuclear Propulsion.

Bimodal Nuclear Propulsion: What is it?

  • NASA relaunched its program to develop bimodal nuclear propulsion a few years ago. Bimodal nuclear propulsion is a two-part system that includes an NTP and NEP element.
  • This system is expected to enable transits to Mars in 100 days.
  • In 2023, the US space agency started a new program named NASA Innovative Advanced Concepts (NIAC) and has selected a nuclear concept for Phase I development.
  • This new bimodal nuclear propulsion system will use a “wave rotor topping cycle” that may reduce transit times to Mars to 45 days.

How will nuclear propulsion work?

  • Nuclear propulsion is based on two concepts Nuclear-Thermal Propulsion (NTP) and Nuclear-Electric Propulsion (NEP).
  • The NTP system includes a nuclear reactor that will heat liquid hydrogen (LH2) propellant and turn it into ionised hydrogen gas (plasma) that will then be channelled through nozzles to generate thrust.
  • NEP depends on a nuclear reactor to provide electricity to a Hall-Effect thruster (ion engine).
  • It will generate an electromagnetic field that will ionise and accelerate an inert gas (for example xenon) to create thrust.

Benefits offered

  • Nuclear propulsions have major advantages over conventional chemical propulsion.
  • These benefits include fuel efficiency, a higher specific impulse rating and unlimited energy density (virtually).
  • NEP’s advantage over NTP and conventional chemical propulsion systems is that it offers more than 10,000 seconds of Specific impulse (ISP).
  • ISP is a measure of how efficiently a reaction mass engine (a rocket using propellant or a jet engine using fuel) creates thrust.

Benefits for manned missions

  • A crewed mission to Mars based on conventional propulsion technology may last up to three years.
  • However, A transit time of 45 days will reduce the overall mission time to months instead of years.
  • This will drastically reduce the major risks associated with missions to Mars which include – radiation exposure, the time spent in microgravity and related health concerns.

Limitations of these nuclear propulsion systems

  • This means NEP systems can maintain thrust for close to three hours.
  • However, the thrust level is lower compared to conventional rockets and NTP systems.
  • In outer space, the thermal energy conversion rate is just 30-40% under ideal circumstances.

 

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Indian Navy Updates

INS Vagir commissioned into the Indian Navy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: INS Vagir

Mains level: Not Much

ins vagir

The fifth Scorpene class conventional submarine was commissioned into the Indian Navy as INS Vagir.

INS Vagir

  • The latest submarine gets its name from the erstwhile Vagir, a submarine that served the Navy between 1973 and 2001 and undertook numerous operational missions.
  • The construction of the new Vagir began in 2009 and it took its maiden sea sortie in February last year.
  • Also known as Sand Shark, the submarine was delivered to the Indian Navy in December 2022.

Class: Kalvari

  • In maritime parlance, a class of ships is a group of vessels which have the same make, purpose and displacement.
  • Vagir is a Kalvari-class submarine, which includes other vessels, such as the INS Kalvari, INS Khanderi, INS Karanj, INS Vela and INS Vagsheer.
  • Of these, Kalvari and Khanderi were commissioned in 2017 and 2019, and Vela and Karanj were inducted in 2021.
  • Vagir has now been commissioned and Vagsheer was launched in 2022 and is expected to be inducted next year.
  • The submarines in the current Kalvari-class take their names from erstwhile decommissioned classes of submarines named Kalvari, which included Kalvari, Khanderi, Karanj and Vela classes — comprising Vela, Vagir, Vagshir.

Capabilities and technical details of INS Vagir

  • The Kalavari class of submarines have an estimated endurance of approximately 50 days.
  • They also have the capability of operating in a wide range of Naval combat including anti-warship and anti-submarine operations, intelligence gathering and surveillance and naval mine laying.
  • These submarines are around 220 feet long and have a height of 40 feet. It can reach the highest speeds of 11 knots (20 km/h) when surfaced and 20 knots (37 km/h) when submerged.
  • The modern variants of the Scorpene class of submarines have what is called Air Independent Propulsion (AIP) which enables non-nuclear submarines to operate for a long time without access to surface oxygen.

Strategic importance

  • Currently, India has less number of submarines than what is required with some more of those from both types being at various stages of construction.
  • India operates one submarine in the nuclear-powered class of Chakra and two other nuclear-powered vessels in Arihant.
  • There are in addition to submarines belonging to three classes of Diesel Electric category — Kalvari, Shishumar and Sindhughosh, some of which are ageing.
  • The nuclear-powered and diesel-electric submarines have their designated roles in the Carrier Battle Groups, which are formations of ships and submarines with Aircraft Carriers in the lead role.
  • As per the basic principles of submarine deployment and minimum requirement for India to create a strategic deterrence, there is a specific number of submarines of both types that India needs to have in active service.

 

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Capital Markets: Challenges and Developments

RBI says no Foreign Investment cap on Sovereign Green Bonds

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Sovereign Green Bonds

Mains level: Not Much

green bond

The sovereign green bonds issued by the Indian government will not have any restrictions on foreign investment, the Reserve Bank of India (RBI) said.

What are Sovereign Green Bonds?

  • A bond is an instrument to raise debt.
  • Since 2007, a market for bonds specifically self-labeled or designated as ‘green’ has emerged.
  • This label differentiates a green bond from a regular bond, which signifies a commitment to exclusively use funds raised to finance or re-finance “green” projects, assets, or business activities.
  • When these bonds carry guarantees related to the repayment of principal and payment of interest by the sovereign or the government, they are called sovereign green bonds (SGrB).

How are the projects for green bonds selected?

  • A project is classified “green” on the basis of four key principles. These include-
  1. Encouraging energy efficiency in resource utilisation
  2. Reducing carbon emissions and greenhouse gases
  3. Promoting climate resilience and
  4. Improving natural ecosystems and biodiversity, especially in accordance with SDG (Sustainable Development Goals).

When is the first sovereign green bond likely to be issued? 

  • In her Budget speech early this year, Finance Minister announced that sovereign green bonds will be issued for mobilising resources for green infrastructure.
  • The proceeds will be deployed in public sector projects that help in reducing the carbon intensity of the economy.
  • These green bonds would be available in 5-year and 10-year tenure.

How are they different from conventional government bonds?

  • Government bonds or government securities (G-Secs) are normally categorised into two — Treasury Bills and dated or long-term securities.
  • These bonds carry coupon rates and are tradable in the securities market.
  • SGrB is one form of dated security. It will have a tenor and interest rate.
  • Money raised through SGrB is part of overall government borrowing.

Who are likely to be the buyers of these bonds? 

  • Both domestic and international investors are expected to be interested in SGrB.
  • However, one thinking is foreign investors may be slightly hesitant due to currency risk.

 

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Indian Army Updates

PM named 21 Andaman Islands after Param Vir Chakra recipients

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Param Vir Chakra

Mains level: Not Much

param vir chakra

Prime Minister named 21 largest unnamed islands of Andaman & Nicobar Islands after India’s 21 Param Vir Chakra awardees.

Note: Earlier, Ross Island was renamed Netaji Subhash Chandra Bose Dweep by the Prime Minister during his visit to the Island in 2018. Neil Island and Havelock Island were also renamed Shaheed Dweep and Swaraj Dweep.

Here’s the full list of 21 islands renamed after Param Vir Chakra awardees:

  1. Dhan Singh Island after Lieutenant Colonel (then Major) Dhan Singh Thapa
  2. Tarapore Island after Lt Col Ardeshir Burzorji Tarapore
  3. Karam Singh Island after Lance Naik (Hony. Captain) Karam Singh
  4. Bana Island after Naib Subedar Bana Singh
  5. Ekka Island after Lance Naik Albert Ekka
  6. Khetrapal Island after 2nd Lt Arun Khetrapal
  7. Pandey Island after Lt Manoj Kumar Pandey
  8. Hoshiar Island after Major Hoshiar Singh
  9. Shaitan Island after Major Shaitan Singh
  10. Jadunath Island after Nayak Jadunath Singh
  11. Yogender Island after Subedar Major (Hony. Captain) Yogendra Singh Yadav
  12. Hamid Island after Company Quartermaster Havildar (CQMH) Abdul Hamid
  13. Rane Island after 2nd Lt Rama Raghoba Rane
  14. Ramaswamy Island after Major Ramaswamy Parameswaran
  15. Batra Island after Captain Vikram Batra
  16. Joginder Island after Subedar Joginder Singh
  17. Salaria Island after Captain G S Salaria (then Major)
  18. Piru Island after Company Havildar Major Piru Singh
  19. Somnath Island after Major Somnath Sharma
  20. Sekhon Island after Flying Officer Nirmaljit Singh Sekhon
  21. Sanjay Island after Subedar Major (then Rifleman) Sanjay Kumar

About Param Vir Chakra (PVC)

  • The PVC is India’s highest military decoration, awarded for displaying distinguished acts of valour during wartime.
  • Till now, the medal has been awarded 21 times, of which 14 were posthumous and 16 arose from actions in Indo-Pakistani conflicts.
  • Of the 21 awardees, 20 have been from the Indian Army, and one has been from the Indian Air Force.
  • Major Somnath Sharma of the Kumaon Regiment was the first recipient.
  • Others wartime gallantry awards are Mahavir Chakra, Vir Chakra; and peacetime gallantry awards include- Ashok Chakra, Kirti Chakra and Shaurya Chakra.

History of gallantry awards in India

  • The history of present-day Indian gallantry awards can be traced back to the rule of the East India Company.
  • The first formal award was instituted by Lord William Bentinck in 1834 as the Order of Merit, later renamed the Indian Order of Merit in 1902.
  • During the First World War, the British awards system was adopted and continued through the Second World War.
  • Post-independence, new awards were instituted on 26 January 1950, with retroactive effect from 15 August 1947.
  • The PVC is equivalent to the Victoria Cross in the United Kingdom and the Medal of Honor in the United States.

 

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Artificial Intelligence (AI) Breakthrough

AI-Generated Art: Paradox of capturing humanity

Note4Students

From UPSC perspective, the following things are important :

Prelims level: AI generated Art, Latest developments in AI

Mains level: AI generated Art, controversies and the question of ethics

AI

Context

  • Around the end of last year, social media spaces were trending with Lensa-generated images of online users. A subscription app, Lensa, makes graphic portraits, called “Magic Avatar” images, using selfies uploaded by its users. As AI takes a strong foothold over the realm of art, are we equipped with mechanisms to define what is right and what is wrong in this domain in the first place?

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The case of Lensa app

  • A subscription app, Lensa, makes graphic portraits, called Magic Avatar images, using selfies uploaded by its users.
  • Celebrities worldwide stepped in to show how they looked so perfect in their avatars in a Lensa world.
  • However, a few days later, hundreds of women netizens worldwide started flagging issues with their avatars. They pointed out how their avatar images had their waists snatched and showed sultry poses.
  • Even after these women uploaded different pictures, Lensa generated hyper-sexualised, semi-pornographic images.

How art is generated using Artificial Intelligence?

  • Uses algorithms based on textual prompts: AI art is any art form generated using Artificial Intelligence. It uses algorithms that learn a specific aesthetic based on textual prompts and, after that, go through vast amounts of data in the form of available images as the first step.
  • Algorithms generate new images: In the next step, the algorithm tries to generate new images that tally with the kind of aesthetics that it has learnt.
  • Role of artists with right keystrokes: The artist becomes more like a curator who inputs the right prompt to develop an aesthetically-fulfilling output. While artists use brush strokes in other digital platforms like Adobe Photoshop, in programmess like Dall-E and Midjourney, all it takes are keystrokes.
  • For example: The generation of an artwork like Starry Night in the digital era. While Van Gogh would have taken days of effort to conceptualise and get the correct strokes and paint, in the AI art era, it is just a matter of the right textual prompts.

AI

Can it truly capture the essence of humanity?

  • The impact of AI-generation on the masses’ experience of art: Art is one of the few pursuits that makes life meaningful. It remains to be seen if AI-generated art will alienate the experience of art from the masses.
  • AI takes away the satisfaction of creating artworks: AI-generated art dehumanises artworks. Perhaps the most satisfying aspect of generating an artwork lies in making it.
  • The questions over the capability of AI to capture subtle human emotions: It is also doubtful whether AI art will capture the most subtle of human emotions. How much humour is “humorous” for AI? Can AI express grief and pain in the most profound ways as described by our poets? Can AI capture the enigmatic smile of Mona Lisa that makes one believe that she is shrouded in mystery?

Have you heard about Midjourney?

  • Midjourney is an AI based art generator that has been created to explore new mediums of thought.
  • It is an interactive bot, which uses machine learning (ML) to create images based on texts. This AI system utilises the concepts and tries to convert them into visual reality.
  • It is quite similar to other technologies such as DALL-E 2.

AI

Arguments in favor of such art

  • Thatre D opera Spatial generated by Midjourney: The question of whether AI art is causing “a death of artistry” was raised, last year, when an entry called “Théâtre D’opéra Spatial” generated from Midjourney (an artificial intelligence programme) by Jason M Allen won the Blue Ribbon at the Colorado State Fair.
  • Finding suitable prompts is no less than a genius art: AI artists like Allen think finding suitable prompts to create an artwork amounts to creativity and qualifies AI art as genuine or authentic.
  • AI could democratise art world: Some artists believe AI art could democratise the art world by removing gatekeepers.

Concerns over the biases in data

  • There is bias in this data available for AI inputs due to a lack of representation of the less privileged communities’ women, people of colour and other marginalised groups.
  • Most of the training data for AI art currently emerges in the Global North and is often mired by the stereotypes of ableism, racism and sexism.
  • Historically, art has performed a political function as a venue for dissent. Can AI art overcome these inherent biases in data to bring out meaningful political engagement?

AI

Conclusion

  • AI-generated art can bring new ideas and possibilities to the art world, but it is important to think about how it might change people’s experience of art and if it takes away the human touch. It is also important to question if AI can truly capture the emotions that make art so special. It’s best to approach AI-generated art with an open mind and consider both the good and bad.

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

State of the Economy Report and the Macroeconomic Stability

Note4Students

From UPSC perspective, the following things are important :

Prelims level: State of the Economy report

Mains level: Indian economy- Monetary policy and macroeconomic stability

Economy

Context

  • The Reserve Bank of India (RBI) just-released State of the Economy report. The report suggests that while controlling inflation was a big concern in 2022, the bank may now be more focused on avoiding a recession in 2023. There is still debate about whether the recession will be short and mild or long and severe.

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What is State of the Economy report?

  • A State of the Economy report is a paper that the Reserve Bank of India (RBI) releases which gives a summary of how the country’s economy is doing.
  • The report talks about things like prices going up, how much the economy is growing, how many people have jobs, and the bank’s plan for managing money.
  • The RBI uses the report to make decisions about interest rates and other economic rules, and it also helps people like economists, investors, and regular citizens understand the economy and make smart choices.

Economy

What the RBI’s State of the Economy report says?

  • Retail inflation eased: Retail inflation eased to 5.72 per cent in December. In November, the inflation print was 5.88 per cent. The government has mandated the central bank to keep inflation at 4 per cent with a +/- 2 per cent band.
  • Consumer price inflation within RBI’s upper tolerance limit: The report said the country’s macroeconomic stability is getting bolstered with inflation being brought into the tolerance band. consumer price inflation in the last two months falling within the RBI’s six per cent upper tolerance limit
  • Hopeful for the fiscal consolidation: It is even hopeful of fiscal consolidation underway at central and sub-national levels and the external current account deficit on course to narrow through the rest of 2022 and 2023. RBI said in a report that they want to keep prices steady at a certain level and bring it down to 4% by 2024.
  • Narrowing CAD: Lead indicators suggest that the current account deficit is on course to narrow through the rest of 2022 and 2023.
  • Stock market continue to outperform peers: The country’s stock markets stood out in 2022 and continue to outperform peers on the strength of macroeconomic fundamentals and retail participation.

Who prepares the report and what the authors says?

  • Views expressed are not of the institution: The report was prepared by RBI’s deputy governor Michael Patra and other RBI officials. The views expressed in the report are of the authors and not of the institution, the report said.
  • India at a bright spot: Authors said the prospect of India as a bright spot amidst 2023’s encircling gloom is burnished by most recent history and current developments. By cross-country standards, the country’s economy exhibited resilience through 2022 in the face of the triad of shocks war; monetary policy tightening; and recurring waves of the pandemic.
  • India will be ahead of UK: According to the authors, at current prices and exchange rates, India will still be the 5th largest economy in the world in 2023, worth $3.7 trillion and will be ahead of the UK.

Economy

Back to basics: What is Monetary policy?

  • Monetary policy is the macroeconomic policy laid down by the central bank.
  • It involves the management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
  • A contractionary policy increases interest rates and limits the outstanding money supply to slow growth and decrease inflation.
  • During times of slowdown or a recession, an expansionary policy grows economic activity, by lowering interest rates, saving becomes less attractive, and consumer spending and borrowing increase.

What are the concerns and prognosis over the report?

  • Predictions are too optimistic: The report’s release is significant, as it comes before the Union Budget for 2023-24. However, the report’s predictions may be too optimistic.
  • Risks tilted towards growth than inflation: The balance of risks is currently tilted towards growth rather than inflation, both globally and domestically.
  • Slowing down the pace of monetary tightening: It is appropriate for the RBI to slow down or pause the pace of monetary tightening. Monetary policy takes time to have an effect, so the impact of these increases may take a few quarters to realise actually.
  • Wait and Watch Approach: The RBI can afford to adopt a wait-and-watch approach and allow the impact of past actions to be fully felt. This does not mean neglecting inflation, as bringing it down to 4% is still important.

Economy

Conclusion

  • The world is, no doubt, viewing India favourably as an investment destination, both for its large domestic market and the need to de-risk from China in the current geopolitical environment. The government’s focus on improving the country’s physical as well as digital infrastructure is boosting the investors’ confidence. Demonstrating macroeconomic stability and policy credibility can be the icing on the cake to bring the world to India.

Mains question

Q. Highlight RBI’s State of the Economy report and discuss what makes India a favorable investment destination?

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Issues related to Economic growth

Key takeaways form the World Economic Forum’s annual meeting

Note4Students

From UPSC perspective, the following things are important :

Prelims level: World Economic Forum

Mains level: World Economic Forum annual meeting and key takeaways and new initiatives

World Economic Forum

Context

  • The World Economic Forum’s Annual Meeting 2023, held in the Swiss town of Davos, ended Friday a conference that started in a world possibly fundamentally altered, but whose processes and outcomes remained pretty much business as usual.

The theme this year was ‘Cooperation in a Fragmented World’.

World Economic Forum (WEF)

  • Headquartered in Geneva, Switzerland, WEF is an international not-for-profit organization, focused on bringing the public and private sectors together to address the global political, social, and economic issues.
  • It was founded in 1971 by Swiss-German economist and Professor Klaus Schwab in a bid to promote the global cooperation on these most pressing problems.
  • The first meeting of WEF was held more than five decades ago in Davos, which has been the home of the annual gathering almost ever since, also becoming the shorthand for the event.

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World Economic Forum

key takeaways from WEF on the economy

  • Positive outlook for economy: Most business leaders were upbeat about the economy, with US and the European Union (EU) seemingly beyond the risk of a recession now. China ending its zero Covid curbs and opening shop again added to the positive outlook.
  • Caution from central banks: Central banks of the major economies cautioned that concerns still remained, and said they would keep interest rates high to ensure inflation is under check. For example, Stay the course is my mantra, European Central Bank President quoted. The US Federal Reserve Vice Chair Lael Brainard was quoted as reminding investors that “inflation remains high, and policy will need to be sufficiently restrictive for some time.
  • Potential impact on energy prices: Many also pointed out that China opening up could mean a rise in its energy consumption, thereby driving up energy prices.
  • Concerns for developing economies: As the richer nations look to focus inwards, protecting their own workers, energy sufficiency, supply lines, etc., concerns were raised that this policy direction would hit developing economies.

World Economic Forum

Climate change and green energy discussions at World Economic Forum

  • The need for green energy and financing: Everyone agreed upon the need for green energy and the need for more money to flight climate change.
  • GAEA initiative to unlock $3 trillion financing: According to the WEF’s website, The World Economic Forum, supported by more than 45 partners launched the Giving to Amplify Earth Action (GAEA), a global initiative to fund and grow new and existing public, private and philanthropic partnerships (PPPPs) to help unlock the $3 trillion of financing needed each year to reach net zero, reverse nature loss and restore biodiversity by 2050.
  • International Concerns and Reactions: The EU raised concerns over a US green energy law that benefits products, such as electric vehicles, made in America.
  • New Initiatives and Partnerships: The Press Trust of India (PTI) reported that more than 50 high-impact initiatives were launched at the event. 1.Maharashtra Institution for Transformation (MITRA) signed a partnership with the forum on urban transformation to give the state government strategic and technical direction. 2. A thematic centre on healthcare and life sciences is to be set up in Telangana. 3. The Coalition for Epidemic Preparedness and Innovations (CEPI) aims to develop new vaccines for future pandemics.

Ukraine demands more military and financial aid

  • Military Aid and Financial Aid for Reconstruction: Ukraine kept up its demand for more military aid to fight its war against Russia, and more financial aid to rebuild after the war, saying the reconstruction fund commitments should start coming in now and not after the war ends.
  • President Zelenskyy’s Address and Criticism of US and Germany: While Ukraine President Volodymyr Zelenskyy gave a video address. In his address, Zelenskyy made an indirect criticism of the US and Germany dithering over sending tanks to his country.

World Economic Forum

Criticism and defence of the Davos Event

  • Spectacle of Rich and Powerful Talking about Poverty and Climate: The jarring spectacle of the Davos event where the uber-rich and powerful fly in on private jets to talk about poverty alleviation and climate action came in for criticism yet again.
  • Opportunity for Decision-Makers to Meet and Interact: However, others pointed out that despite its flaws, the conference is an opportunity for many decision-makers to meet and interact with each other.
  • The Economist’s View on the Importance of Communication and Conversation: As the Economist editor-in-chief Zanny Minton Beddoes put it, while the talks at Davos can be described as “highly-caffeinated speed dating”, more conversation and communication is better than less contact and less communication.

Conclusion

  • The World Economic Forum highlighted the pressing need for green energy and financing to combat climate change. Though the event remained focused on business as usual, we can see that the WEF provided an opportunity for decision-makers to meet and interact, and more than 50 high-impact initiatives were launched at the event.

Mains Question

Q. Discuss some of the key takeaways from the WEF’s annual meeting 2023, with a specific focus on the discussions and initiatives related to the economy and climate change.

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Police Reforms – SC directives, NPC, other committees reports

PM calls for Prison Reforms and Repeal of Obsolete Laws

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Various committees mentioned

Mains level: Prison reforms in India

prison

Prime Minister has suggested prison reforms to improve jail management and recommended repealing obsolete criminal laws, at the national annual police meet.

Issues with Prisons in India

  • Overcrowding: 149 jails in the country are overcrowded by more than 100% and that 8 are overcrowded by margins of a 500%. Overcrowding takes affects the already constrained prison resources and separation between different classes of prisoners difficult.
  • Under-trials: More than 65% of the prison population in India are under trials. The share of the prison population awaiting trial or sentencing in India is extremely high by international standards; for example, it is 11% in the UK, 20% in the US and 29% in France.
  • Lack of legal aid: Legal aid lawyers are poorly paid, and often over-burdened with cases. Further, there is no monitoring mechanism to evaluate the quality of legal aid representation in most states.
  • Miserable conditions:Prison structures in India are in dilapidated condition. Further, lack of space, poor ventilation, poor sanitation and hygiene make living conditions deplorable in Indian prisons.
  • Shortage of staff:The ratio between the prison staff and the prison population is approximately 1:7. In the absence of adequate prison staff, overcrowding of prisons leads to rampant violence and other criminal activities inside the jails.
  • Torture and Sexual abuse: Prisoners are subjected to inhuman psychological and physical torture. Sexual abuse of persons in custody is also part of the broader pattern of torture in custody.
  • Custodial deaths:In 2015, a total of 1,584 prisoners died in jails. A large proportion of the deaths in custody were from natural and easily curable causes aggravated by poor prison conditions. Further, there have been allegations of custodial deaths due to torture
  • Underpaid and unpaid labor: Labor is extracted from prisoners without paying proper wages.
  • Discrimination:According to Humans Rights Watch, a “rigid” class system exists in Indian prisons. On the other hand, socio-economically disadvantaged prisoners are deprived of basic human dignity.
  • Inadequate security measures and management: Poor security measures and prison management often leads to violence among inmates and resultant injury and in some cases death.
  • Lack of mental healthcare: In prison the problem of the overcrowding, poor sanitary facilities, lack of physical and mental activities, lack of decent health care, increase the likelihood of health problems. Further, mental health care has negligible focus in Indian prisons.
  • Colonial system:Absence of reformative approach in the Indian prison system has not only resulted in ineffective integration with society but also has failed to provide productive engagement opportunities for prisoners after their release

SC Judgements in this regard

  • Through a number of judgements {like Maneka Gandhi case(Right to life and personal with dignity), Ramamurthy vs. State of Karnataka (on conditions of prisons) Prem Sankar Shukla vs. Delhi Administration (no handcuffing).
  • The Supreme has upheld three broad principles regarding imprisonment and custody.
  1. A person in prison does not become a non-person;
  2. A person in prison is entitled to all human rights within the limitations of imprisonment
  3. There is no justification for aggravating the suffering already inherent in the process of incarceration.

Major legislations for prison reforms

  • The Prisons Act, 1894:It contains various provisions relating to health, employment, duties of jail officers, medical examination of prisoners, prison offenses etc.
  • Transfer of Prisoners Act, 1950– The Act deals with the transfer of a prisoner from state to another state
  • Repatriation of Prisoners Act, 2003:The act enables the transfer of foreign prisoners to the country of their origin to serve the remaining part of their sentence. It also enables the transfer of prisoners of Indian origin convicted by a foreign court to serve their sentence in India
  • Model Prison Manual 2016:It aims at bringing in basic uniformity in laws, rules and regulations governing the administration of prisons and the management of prisoners across all the states and UTs in India
  • Legal service Authority Act, 1987:According to the law, a person in custody is entitled to free legal aid.

Committees and Recommendations

Various Committees and Commissions have been constituted by the State Governments as well as the Government of India to study and make suggestions for improving the prison conditions and administration.

(1) Mulla Committee, 1983

The major recommendations of the committee included:

  • The setting up of a National Prison Commission to oversee the modernization of the prisons in India
  • Putting a ban on clubbing together juvenile offenders with the hardened criminals in prison and enacting a comprehensive and protective legislation for the security and protective care of delinquent juveniles
  • Segregation of mentally ill prisoners to a mental asylum
  • The conditions of prison should be improved by making adequate arrangements for food, clothing, sanitation and ventilation etc.
  • Lodging of under trial in jails should be reduced to bare minimum and they should be kept separate from the convicted prisoners

(2) Krishna Iyer Committee, 1987

  • The committee mandated to study the condition of women prisoners in the country.
  • It recommended induction of more women in the police force in view of their special role in tackling women and child offenders.

(3) National Policy on Prison Reforms and Correctional Administration, 2007

  • In 2005, the Government of India constituted a high-powered committee under the chairmanship of the Director General, the Bureau of Police Research and Development (BPR&D).
  • This committee used the reports of Justice Mulla Committee Report & Justice Krishna Iyer Committee and made several additional and new recommendations.

(4) Justice Amitava Roy Committee, 2018

  • In 2018 the Supreme Court constituted Amitava Roy Committee to look into the aspect of jail reforms across the country and make recommendations on several aspects, including overcrowding in prisons.
  • It recommended- Special fast-track courts should be set up to deal exclusively with petty offences which have been pending for more than 5 years.
  • Further, accused persons who are charged with petty offences and that granted bail, but who are unable to arrange surety should be released on a Personal Recognizance (PR) Bond.

Steps taken

  • Modernization of Prisons scheme: The scheme for modernization of prisons was launched in 2002-03 with the objective of improving the condition of prisons, prisoners and prison personnel. Various components included the construction of new jails, repair and renovation of existing jails, improvement in sanitation and water supply etc.
  • E-Prisons Project: It aims to introduce efficiency in prison management through digitization.
  • Open Prisons: The All-India Committee on Jail Reform constituted in 1980 recommended the government to set up and develop open prisons in each state and UT similar to the Sanganer open camp in Rajasthan.

Way Forward

  • Urgent repair: There is a dire need to address the issue of overcrowding in Indian jails. Further, sincere efforts should be made to improve living conditions which include better sanitation and hygiene, and adequate food and clothing.
  • Address health concerns: There should be an urgent focus on addressing health issues and ensuring access to medical care among prisoners. Women’s health needs, covering mental, physical, sexual and reproductive health, require particular attention.
  • Reform offenders: Efforts should be made to reform offenders in the social stratification by giving them appropriate correctional treatment.
  • Training and rehabilitation: Initiatives should be taken to impart vocational training to prisoners and ensure proper rehabilitation and social inclusion after release
  • Legal aid: The government must take initiative to improve the conditions of under-trial prisoners which can be achieved by speeding of the trial procedure, simplification of the bail procedure and providing effective legal aid
  • More open prisons: Open prison as an effective institution for the rehabilitation of offenders has been highlighted by Supreme Court as late as 1979 in the Dharambeer v State of U.P case. Open prisons should be encouraged as correctional facilities.

 

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MGNREGA Scheme

Employment days under MGNREGS at a 5-year low

Note4Students

From UPSC perspective, the following things are important :

Prelims level: MGNREGS

Mains level: Right to work

mgnregs

The average days of employment provided per household under the Mahatma Gandhi National Employment Guarantee Scheme (MGNREGS) are at a five-year low, this financial year.

What is the news?

  • As on January 20, the average days of employment provided per household is 42 days while it was 50 days in 2021-22, 52 days in 2020-21, 48 days in 2019-20 and 51 days in 2018-19.

Why such unprecedented drop in employments?

The program has been plagued by systemic problems that is disincentivising participation.

  • Choking of funds: This has led to suppression of work demand and delays in wage payments.
  • App for attendance: The introduction of unnecessary technical complexities like an app for attendance at worksites has caused more hardships for workers who will be more dissuaded going forward.
  • States dismal policies: With less than two-months for the financial year to close, there are at least nine States and union territories which have utilised less than 70% of projected person days.
  • Budgetary cuts: With low utilisation, financial outlay for the underperforming States is expected to further shrink in the upcoming financial year.

What is MGNREGS?

  • The MGNREGS is a scheme under the Mahatma Gandhi National Rural Employment Guarantee Act of 2005.
  • This is labour law and social security measure that aims to guarantee the Right to Work’.
  • The act was first proposed in 1991 by V. Narasimha Rao.

What is so unique about it?

  • MGNREGS is unique in not only ensuring at least 100 days of employment to the willing unskilled workers, but also in ensuring an enforceable commitment on the implementing machinery i.e., the State Governments, and providing a bargaining power to the labourers.
  • The failure of provision for employment within 15 days of the receipt of job application from a prospective household will result in the payment of unemployment allowance to the job seekers.
  • Any Indian citizen above the age of 18 years who resides in rural India can apply for the NREGA scheme. The applicant should have volunteered to do unskilled work.
  • Employment is to be provided within 5 km of an applicant’s residence, and minimum wages are to be paid.
  • Thus, employment under MGNREGS is a legal entitlement.

Why is MGNREGS under fire these days?

  • Not enough work: Bihar despite its levels of poverty, does not generate enough work to make a concrete difference, and on the other end of spectrum we have Kerala which is economically better but has been utilising it for asset creation.
  • No asset creation: There is a lack of tangible asset creation. The committee will study if the composition of work taken up presently under the scheme should be changed.

Issues in implementation

  • Insufficient budgetary allocations: Increase in the nominal budget but actual budget (after adjusting inflation) decreased over the years.
  • Approved Labour Budget Constraints: The Centre through the arbitrary “Approved Labour Budget” has reduced the number of days of work and put a cap on funds through the National Electronic Fund Management System
  • Not so attractive wages rate: Currently, MGNREGS wage rates of 17 states are less than the corresponding state minimum wages.
  • Delay in wage payments: Under the MGNREGS, a worker is entitled to get his or her due wages within a fortnight of completion of work, failing which the worker is entitled to the compensation.
  • No-work situations are rising: None of the states was able to provide full 100 days employment as mentioned in the scheme.
  • Data manipulations by authorities: A recent study has found that data manipulation in the MGNREGS is leading to gross violations in its implementation.
  • Non-purposive spending and corruptions: Many works sanctioned under MGNREGS often seem to be non-purposive. Quite often, they are politically motivated hotspots to create rampant corruption.
  • Centralization weakening local governance: A real-time MIS-based implementation and a centralised payment system has further left the representatives of the Panchayati Raj Institutions with literally no role in implementation.

Conclusion

  • Large scale social security programmes like MGNREGS are subjected to undergo several stumbling blocks in the times of ongoing pandemic.
  • Government and NGOs must study the impact of MGNREGS in rural areas so as to ensure that this massive anti-poverty scheme is not getting diluted from its actual path.
  • We must view MGNREGS as an opportunity and explicitly include it in a broad-based strategy to tackle any socie-economic crisis.

 

 

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Historical and Archaeological Findings in News

Excavations reveal Buddhist monastery complex at Bharatpur of Bengal

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Various mudras of Buddha

Mains level: Ancient Buddhist Architecture

buddh

Recent excavations at Bharatpur in West Bengal’s Paschim Bardhaman district have revealed the presence of a Buddhist monastery.

Bharatpur Buddhist Monastery Complex

  • The Kolkata Circle of the Archeological Survey of India (ASI) started excavating the site in the second week of January and a structural complex of a monastery has now been partially exposed.
  • The site was initially excavated almost fifty years ago between 1972 and 1975 when archeologists from ASI found a Buddhist stupa at the site.

Uniqueness of this site

  • This place hosts a large stupa along with a monastery complex and black and red ware pottery from the Chalcolithic or Copper Age.
  • In other sites across West Bengal, such as Karnasubarna in Murshidabad, Moghalamari in Paschim Medinipur and Jagjivanpur in Malda, archeologists have found only smaller votive stupas.
  • Further excavation is likely to shed more light to understand the earliest occupation of the site and its continuity till the establishment of a Buddhist monastery.

Key findings

  • In the 1970s when the site was excavated along with the stupa, five beautiful seated sculptures of the Buddha in Bhumisparsha Mudra -with all five fingers of the right hand extended to touch the ground — were found.
  • These miniature sculptures, each about 30 cm in height, were most likely used for worship in the monastery.

Back2Basics: Mudras of Buddha

buddh

(1) Dharmachakra Mudra

  • It is also called as the gesture of ‘Teaching of the Wheel of Dharma’ that describes one of the most important moments in the Buddha’s life as he performed the Dharmachakra mudra in his first sermon in Sarnath after he attained enlightenment.
  • It is performed with the help of both the hands which are held against the chest, the left facing inward, covering the right facing outward.

(2) Dhyan Mudra

  • It is also known as Samadhi or Yoga Mudra.
  • It is performed with the help of two hands, which are placed on the lap and place the right hand on the left hand with stretched fingers (thumbs facing upwards and other fingers of both the hand resting on each other.)
  • This is the characteristic gesture of Buddha Shakyamuni, Dhyani Buddha Amitabh and the Medicine Buddha.

(3) Bhumisparsa Mudra

  • This gesture is also known as ‘touching the Earth’, which represents the moment of the Buddha’s awakening as he claims the earth as the witness of his enlightenment.
  • It is performed with the help of the right hand, which is held above the right knee, reaching toward the ground with the palm inward while touching the lotus throne.

(4) Varada Mudra

  • This mudra represents the offering, welcome, charity, giving, compassion and sincerity.
  • It is performed with the help of both the hands in which palm of right hand is facing forward and fingers extended and left hand palm placed near centre with extended fingers.

(5) Karana Mudra

  • It signifies the warding off of evil which is performed by raising the index and the little finger, and folding the other fingers.
  • It helps in reducing sickness or negative thoughts.

(6) Vajra Mudra

  • This gesture denotes the fiery thunderbolt that symbolises the five elements—air, water, fire, earth, and metal.
  • It is performed with the help of right fist and left forefinger, which is placed by enclosing the erect forefinger of the left hand in the right fist with the tip of the right forefinger touching (or curled around) the tip of the left forefinger.

(7) Vitarka Mudra

  • It signifies the discussion and transmission of the teachings of the Buddha.
  • It is performed by joining the tips of the thumb and the index fingers together while keeping the other fingers straight, which is just like the Abhaya Mudra and Varada Mudra but in this mudra the thumbs touch the index fingers.

(8) Abhaya Mudra

  • It is a gesture of fearlessness or blessing that represents the protection, peace, benevolence, and dispelling of fear.
  • It is performed with the help of right hand by raising to shoulder height with bent arm, and the face of palm will be facing outward with fingers upright whereas the left hand hanging down while standing.

(9) Uttarabodhi Mudra

  • This denotes the supreme enlightenment through connecting oneself with divine universal energy.
  • It is performed with the help of both the hands, which are placed at the heart with the index fingers touching and pointing upwards and the remaining fingers intertwined.

(10) Anjali Mudra

  • It is also called Namaskara Mudra or Hridayanjali Mudra that represents the gesture of greeting, prayer and adoration.
  • It is performed by pressing the palms of the hands together in which the hands are held at the heart chakra with thumbs resting lightly against the sternum.

 

Answer this PYQ from CSP 2014 in the comment box:

Q.Lord Buddha’s image is sometimes shown with a hand gesture called ‘Bhumisparsha Mudra’. It symbolizes-

a) Buddha’s calling of the Earth to watch over Mara and to prevent Mara from disturbing his meditation

b) Buddha’s calling of the Earth to witness his purity and chastity despite the temptations of Mara

c) Buddha’s reminder to his followers that they all arise from the Earth and finally dissolve into the Earth and thus this life is transitory

d) Both the statements ‘a’ and ‘b’ are correct in this context

 

Post your answers here.

 

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Modern Indian History-Events and Personalities

Places in news: Jagannath Puri Temple

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Jagannath Temple and its architecture

Mains level: Not Much

Odisha Governor’s suggestion that foreigners and non-Hindus should be allowed to enter Puri’s famed Jagannath temple has not gone down well with traditionalists and political leaders alike.

Why in news?

  • It has been the practice for centuries — even though there is no clearly articulated reason for it.
  • Some historians believe that multiple attacks on the Temple by foreign invaders might have led the servitors to impose restrictions on the entry of non-Hindus.
  • Others have said that this was the practice from the time the Temple was built.
  • In 1984, the servitors famously opposed the entry of Indira Gandhi inside the Temple, saying she had married a non-Hindu.

About Jagannath Temple

  • The Jagannath Temple is an important Vaishnavite temple dedicated to Jagannath, a form of Sri Krishna in Puri in Odisha.
  • The present temple was rebuilt from the 10th century onwards, on the site of an earlier temple, and begun by Anantavarman Chodaganga Deva, the first king of the Eastern Ganga dynasty.
  • The Puri temple is famous for its annual Ratha Yatra, or chariot festival, in which the three principal deities are pulled on huge and elaborately decorated temple cars.

Its architecture

  • With its sculptural richness and fluidity of the Oriya style of temple architecture, it is one of the most magnificent monuments of India.
  • The huge temple complex covers an area of over 400,000 square feet and is surrounded by a high fortified wall.
  • This 20 feet high wall is known as Meghanada Pacheri.
  • Another wall known as kurma bedha surrounds the main temple.

The temple has four distinct sectional structures, namely:

  1. Deula, Vimana or Garba griha (Sanctum sanctorum) where the triad deities are lodged on the ratnavedi (Throne of Pearls). In Rekha Deula style;
  2. Mukhashala (Frontal porch);
  3. Nata mandir/Natamandapa, which is also known as the Jagamohan (Audience Hall/Dancing Hall), and
  4. Bhoga Mandapa (Offerings Hall)

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Historical and Archaeological Findings in News

Assam’s Charaideo Maidams nominated for UNESCO tag

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Charaideo Maidams, Ahom Kingdom

Mains level: Medieval kingdoms of India

maidam

The Centre has decided to nominate Assam’s Charaideo Maidams — the Ahom equivalent of the ancient Egyptian pyramids — for the UNESCO World Heritage Centre this year.

Why in news?

  • The nomination has attained significance at a time when the country is celebrating the 400th birth anniversary of Lachit Barphukan.

Charaideo Maidams

  • The Charaideo maidams represents the late medieval (13th-19th century CE) mound burial tradition of the Tai Ahom community in Assam.
  • The Ahoms preferred to place the departed family members at Charaideo where the first king Sukapha was laid to rest.
  • The historical chronicles inform that wives, attendants, pet animals and huge quantity of valuables were buried with the departed kings.
  • The Charaideo Maidams enshrine the mortal remains of the members of the Ahom royalty, who used to be buried with their paraphernalia.
  • After the 18th century, the Ahom rulers adopted the Hindu method of cremation and began entombing the cremated bones and ashes in a Maidam at Charaideo.
  • Out of 386 Maidams explored so far, 90 royal burials at Charaideo are the best preserved, representative of and the most complete examples of mound burial tradition of the Ahoms.

Architecture details

  • Architecturally it comprises a massive underground vault with one or more chambers having domical superstructure.
  • It is covered by a heap of earthen mound and externally it appears a hemispherical mound.
  • At the top of the mound a small open pavilion chow-chali is provided.
  • An octagonal dwarf wall encloses whole maidam.

 

Ahoms Dynasty

  • The Ahom, also known as the Tai-Ahom, are an ethnic group from Assam and Arunachal Pradesh in India.
  • This ethnic group is made up of interbred descendants of the Tai people, who first came to Assam’s Brahmaputra valley in 1228, and indigenous people who later joined them.
  • Sukaphaa, the Tai group’s leader, and his 9000 supporters founded the Ahom empire (1228–1826 CE), which ruled over part of modern-day Assam’s Brahmaputra Valley until 1826.
  • Charaideo, more than 400 km east of Guwahati, was the first capital of the Ahom dynasty founded by Chao Lung Sukaphaa in 1253.
  • The current Ahom people and culture are a mix of the ancient Tai people and culture, as well as indigenous Tibeto-Burman people and cultures that they assimilated in Assam.

 

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Oil and Gas Sector – HELP, Open Acreage Policy, etc.

What is Liquefied Natural Gas (LNG), and how it impacts the climate?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: LNG

Mains level: Not Much

lng

The EU is weaning itself off piped Russian gas by rapidly expanding imports of liquefied natural gas (LNG) from US.

What is Liquefied Natural Gas or LNG?

  • LNG is natural gas reduced to a liquid state (liquefaction) through intense cooling to around -161 degrees Celsius (-259 Fahrenheit).
  • It is constituted almost wholly of methane — a potent greenhouse gas and can be transported around the world by ship.
  • This liquid gas is 600 times smaller than the original volume and is half the weight of water.
  • After arriving at its destination, the cargo is regasified in a floating terminal and redistributed through pipelines.

Economic feasibility of LNG

  • High cost of liquefaction: despite LNG’s export potential, the high cost of liquefaction and producing LNG has limited its market.
  • Losses: Between 10-25% of the energy of the gas is being lost during the liquefaction process.
  • Costly transport: The cooling, liquefying and transport processes, as well as the post-transport regasification procedures, also require a lot of energy.

What’s the climate impact of LNG?

  • Emission: With LNG creating almost 10 times more emissions than piped gas by one estimate, its rapid expansion will likely compromise climate targets.
  • Risks of methane leakages: Methane loss across the supply chain risks also contributes to LNG’s high emissions.
  • Huge carbon equivalence: Meanwhile, LNG emits 14 times as much carbon as solar power when producing the equivalent amount of energy, and 50 times as much carbon as wind power.

 

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Capital Markets: Challenges and Developments

What are Additional Tier-1 (AT-1) Bonds?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: AT1 Bonds

Mains level: NA

The Bombay High Court has quashed the write-off of Additional Tier-1 (AT1) bonds worth Rs 8,400 crore issued by Yes Bank Ltd, bringing relief to investors.

What are AT1 bonds?

  • AT-1, short for Additional Tier-1 bonds, are a type of unsecured, perpetual bonds that banks issue to shore up their core capital base to meet the Basel-III norms.
  • AT-1 bonds are complex hybrid instruments, ideally meant for institutions and smart investors who can decipher their terms and assess if their higher rates compensate for their higher risks.
  • They carry a face value of ₹10 lakh per bond.
  • There are two routes through which retail folk have acquired these bonds — initial private placement offers of AT-1 bonds by banks seeking to raise money; or secondary market buys of already-traded AT-1 bonds based on recommendations from brokers.

Why are they important?

AT-1 bonds have several unusual features lurking in their fine print, which make them very different from plain bonds.

  • One, these bonds are perpetual and carry no maturity date. Instead, they carry call options that allow banks to redeem them after five or 10 years. But banks are not obliged to use this call option and can opt to pay only interest on these bonds for eternity.
  • Two, banks issuing AT-1 bonds can skip interest payouts for a particular year or even reduce the bonds’ face value without getting into hot water with their investors, provided their capital ratios fall below certain threshold levels. These thresholds are specified in their offer terms.
  • Three, if the RBI feels that a bank is tottering on the brink and needs a rescue, it can simply ask the bank to cancel its outstanding AT-1 bonds without consulting its investors. This is what has happened to YES Bank’s AT-1 bond-holders who are said to have invested ₹10,800 crore.

 

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Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

Intra-national COP: An innovative approach of cooperation

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Intranational COP, Cooperative federalism for effective climate action

national

Context

  • India revised its target to reduce the carbon intensity of its GDP to 45 percent by 2030, more ambitious than the earlier target of 34 percent. These National carbon emission targets were globally appreciated and have further strengthened its leadership position in climate action.

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Spirit of cooperative federalism is needed to achieve this target

  • In order to effectively address climate change, India needs to involve all of its states and Union Territories. During recent climate summits, the states and UTs have not been active participants.
  • A new approach to cooperation between states and UTs on climate action is needed, similar to the cooperation used in the implementation of the Goods and Services Tax (GST). This will lead to better results in public sector actions to tackle climate change.

Role of states

  • Power of States and UTs: Provisions in the Constitution of India, legislations of the Parliament, executive orders, and judicial decisions enable states/UTs to have a substantial influence on matters pertaining to land, electricity, mobility, labour, pollution control, skill building, law and order, financial incentives for commercial activities, etc.
  • Role of States and UTs in Policy Implementation: States/UTs can become prime movers in the last mile through interventions in policy, regulation, and project implementation.
  • Potential of India’s Cooperative Federalism: During the ongoing winter session of Parliament, the Prime Minister of India also emphasised the potential of India’s cooperative federalism in becoming ‘a torch bearer of the world’ in achieving Sustainable Development Goals (SDGs) while addressing its Rajya Sabha.

How India’s model of ‘Intranational COP’ will work?

  • Utilizing GST council model for climate action: Climate action is a unifying theme, and creating a forum similar to the Goods and Services Taxes (GST) council, which created successful engagement models during the pan-India roll-out of GST, can be helpful.
  • Facilitating cross-party dialogue: This intra-country group, Intranational COP, can offer opportunities for sharing a stage across parties in a neutral setting where outcome-oriented conversations can take place.
  • Promoting cooperative and competitive federalism for Net Zero: It can kindle the friendly spirit of cooperative and competitive federalism with each state/UT committing to bolder actions towards net zero.
  • Measuring stakeholder performance through consensus building: It can potentially introduce new evaluation parameters for measuring the performance of stakeholders based on their ability to build consensus across boundaries while keeping aside their myopic and constricted vote-bank-centered politics.
  • Learning and Leveraging Best Practices: Climate change is a new and dynamic topic for all stakeholders. It is an equaliser where no state/UT has any inherent advantageous positions. States/UTs can learn best practices from each other to implement, achieve, and measure the outcomes of their actions.

Electricity distribution: A case of cooperation

  • Today, though a project is conceived, financed, and implemented by central agencies, site-specific mobilisation of resources requires the active cooperation of the states/UTs.
  • An important case in point can be electricity distribution, where states can exponentially augment India’s clean energy ambitions.
  • Furthermore, they can directly support municipal corporations/village panchayats in innovating customised approaches for faster and inclusive adoption of national climate goals in line with the socioeconomic and cultural sensitivities of the region.

‘Intranational COP’ for common but differentiated responsibilities

  • Forum for addressing Climate Change within India: It is well-established that some parts of India are economically more developed as compared to others. This translates to the fact that the relatively more prosperous regions contribute more to India’s carbon emissions. Such states are better positioned to initially invest in expensive low-carbon technologies and disseminate them to achieve economies of scale.
  • Addressing Regional Imbalances in Carbon Emissions: IndiaCOP can can unleash creative mechanisms to offset regional imbalances while respecting local cultural sensitivities.
  • Platform for States/UTs to Forge Mutual Cooperation Agreements: It can provide a platform for states/UTs to forge MOUs that complement each other’s strengths while filling up the gaps in technical/financial/people resources. For e.g., small hilly states have good hydroelectric power potential, but they may lack financial wherewithal; states like Rajasthan have good solar energy potential but currently lack sufficient trained manpower, etc.

Way ahead

  • Intranational COP can be a dedicated flagship platform to thrash out a national consensus on India’s climate goals and the means to achieve them. For example, the Finance Commission can play a role in allocating capital based on the climate actions and needs of states.
  • The mechanisms of climate funding and allocation, led by the Finance Commission, can be debated and agreed upon on this platform. Such a consensus will enjoy double legitimacy as it is arrived at collectively by the union and state/UT governments.

Conclusion

  • The success of India’s model of “Intra-national COP” can become a template for federal nations across the world to engage with provincial/local governments with diverse socio-political and economic challenges. It can score a big win in promoting India’s soft power, especially as it takes on the presidency of the G20.

Mains question

Q. During recent climate summits, the states and UTs have not been active participants. In this backdrop how India’s model of Intra-national COP will be helpful?

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Police Reforms – SC directives, NPC, other committees reports

Police conference: Highlighting the Challenges and solutions

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Police conference, Concept of SMART police etc

Mains level: Challenges faced by police and suggestions

conference

Context

  • A conference of the Directors General of Police of all the states and union territories is being held in Delhi from January 20 to 22. The Prime Minister will be attending all the sessions of the three-day conference.

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All you need to know about the Conference

  • This conference of the Directors General of Police is an annual feature.
  • It is organised by the Intelligence Bureau and its deliberations are presided over by the Director, IB, who is considered primus inter pares among the senior-most police officers of the country.
  • This year’s conference, according to media reports, will be discussing emerging trends in militancy and hybrid militancy in Jammu and Kashmir, counter-terrorism, cryptocurrency, drug trafficking, radicalisation and other important matters.

What is missing in the agenda?

  • Problems at grass root are rarely discussed: The agenda, year after year, reflects the security-related problems of the country at the macro level. So far so good. But the grass roots problems are seldom taken up or deliberated upon.
  • Dismal picture of Police stations: The strength of a chain, as they say, is determined by its weakest link, and the weakest link today is the police station. Leaving aside the model police stations and some in the metro cities, the average police station presents a dismal picture dilapidated building, case property like motorcycles and cars littered all over the compound, no reception room, filthy lockup, and so on.
  • Overburdened staff: The staff, overworked and fatigued, is generally unresponsive, if not rude.
  • Available resources are limited resources: They may not have access to vehicles or have run out of fuel as per the allotted quota.
  • Political influence: Even if you are able to speak with a responsible sub-inspector, they may be pressured by politicians to change their actions.

For instance: The data according to the Status of Policing in India Report 2019

  • Shortage of personnel: According to the report, police in India work at 77% of their sanctioned strength and these personnel work for 14 hours a day on average.
  • Lack of equipment and technology: There are 70 police stations which have no wireless, 214 police stations that have no telephone and 240 police stations that have no vehicles.
  • Poor housing and training facilities: Housing facilities for police are unsatisfactory. Training of personnel is inadequate, the training institutions have not kept pace with the changing paradigm on the law or crime front and are manned generally by unwanted, demotivated officers.
  • Technology gap: Technology support leaves much to be desired; the criminals are, in fact, way ahead of the police.

Hard fact and the concerns over the police duties in India

  • Police Officer’s Duties and Expectations: The demanding role and expectations of police officers as first responders to any crime, 24/7 duty and assisting other departments with their duties. The public has no obligation to assist police officers. For instance, ASI was stabbed to death in Delhi, bystanders were just standing and watching the scene.
  • High death toll among Police Personnel: It is estimated that 36,044 police personnel have died in the performance of their duties since India’s independence. It is pointed out that the corresponding figure for all the countries of Europe taken together is much less.
  • Duties to become more challenging in future: It is acknowledged that police duties in India are tougher than in any other part of the world, and that these duties are likely to become even more challenging in the future, with the rise of new forms of crime such as terrorist crimes, cybercrimes, drug trafficking, and cryptocurrency.

What improvements are suggested?

  1. The Need to Prioritize Basic Matters: It is important to prioritize basic police matters and ensure that they are effectively dealt with. Once the police station is able to inspire confidence among the people, many other issues will fall into place.
  2. Division of Conference into Two Parts: The format of police conferences should be changed by dividing it into two parts – one dealing with intelligence matters and the other dealing with crime and law and order issues.
  3. Roles of DBI and CBI: It is proposed that the Director of Intelligence Bureau (DIB) preside over the intelligence-related matters, and the Director of Central Bureau of Investigation (CBI) assisted by a senior-most Director General of a state police nominated by the Ministry of Home Affairs should conduct the proceedings of the conference dealing with crime and law and order matters.
  4. Need for Specialized Treatment of Crime: the crime is becoming increasingly complex and requires specialized treatment, and that this bifurcation is necessary in order to effectively address the different aspects of crime.

Do you know the concept of SMART police?

  • The Prime Minister Narendra Modi introduced the concept of SMART Police.
  • SMART stands for: S: Strict but sensitive, M: Modern and mobile, A: Alert and accountable, R: Reliable and responsive, and  T: Trained and tech-savvy.
  • It also aims to make the police more responsive to the needs of the people, and to address issues of police brutality, corruption, and lack of accountability to citizens.

Conclusion

  • The Prime Minister’s concept of SMART Police, which aims to create a force that is strict and sensitive, modern and mobile, alert and accountable, reliable and responsive, techno-savvy and trained, has the potential to bring about a significant change in the working of the police and a new era for the people of the country. It’s important for the conference to review the progress made in implementing this transformation in the police and work towards achieving these objectives to bring about a much-needed change in the police force.

Mains question

Q. What are the major challenges faced by the Indian police force? Discuss improvements suggested to address them?

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Indian Army Updates

Women to get Command Roles in the Indian Army

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Women in Armed Forces

women

As many as 108 women officers in the Army are set to be cleared for the rank of Colonel (selection grade) which will make them eligible to command units and troops in their respective arms and services for the first time.

What exactly does Commanding a unit mean?

  • Once promoted to a Colonel, an officer is eligible to command troops directly in the Army, which is an acknowledgment of the leadership qualities of the officer.
  • It is considered a coveted appointment because in no other rank — including higher ranks like Brigadier or Major General — does an officer interact directly with troops on the ground.
  • Women officers in many streams of the Army, including the Army Air Defence, Signals, Engineers, Army Aviation, EMEs, Army Ordnance Corps, and Intelligence Corps will be commanding units.

Women in commands: Significance

  • Leadership opportunity: Despite working at the grassroots level as junior officers, women officers hitherto did not get an opportunity to prove their leadership skills as they were not eligible to command a unit.
  • Gender parity: Most importantly, it grants women officer’s parity with their male counterparts.
  • Higher ranks: Earlier promotions were staff appointments — which are more administrative in nature and not purely command appointments in which an officer commands troops on ground.
  • Benefits after permanent commission: With a longer career in the Army, women officers will be considered for promotions, including to the rank of Colonel and beyond.

Why did their Colonel promotions come so late?

  • An officer in the Army is promoted to the rank of Colonel only after serving between 16 and 18 years, based on certain criteria such as annual confidential reports and various courses.
  • Women officers who were inducted into the Army were inducted as Short Service Commission (SSC) officers in 1992 and in the years after did not have the choice to opt for permanent commission.

Supreme Court order affirming Permanent Commission

  • In 2019, the Army changed its rules allowing SSC women officers to opt for permanent commission who would have otherwise retired after 14 years of service.
  • However, this was not retrospective and applied only to the batches of women officers starting their career in the Army in 2020.
  • With the landmark Supreme Court judgment of February 2020, permanent commission was granted to women officers with retrospective effect.
  • This opened the doors for their further growth and promotions in the Army, which has been of late opening leadership and higher management courses for women.

How are women still discriminated?

  • Women are still not eligible in core combat arms such as Infantry, Mechanised Infantry and Armoured Corps.
  • Indian Army is not open to women fighting wars at the borders as foot soldiers.
  • Much of this resistance stems from past instances of male soldiers being taken as prisoners of war and tortured by the enemy.
  • However, the Army has recently decided to open the Corps of Artillery, a combat support arm, to women.

What about the Indian Navy and the Indian Air Force?

  • Women officers have been inducted into all branches of the Navy, and they will be eligible for permanent commission in the future.
  • Women officers can command shore-based units and, as they join the service and become eligible for permanent commission, they would be able to command ships and air squadrons.
  • The IAF has opened all branches for women officers, including the fighter stream and the new weapon systems branch.
  • As they are granted permanent commission based on eligibility and vacancies, they will be eligible to command units in the future.

How many women serve in the Indian armed forces?

  • The Army, being the largest of the three services, has the largest number of women officers at 1,705, followed by 1,640 women officers in the IAF, and 559 in the Navy.
  • This data was submitted by the government to Parliament last year.

 

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Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

Forex Reserves zoom by $10.417 billion to $572 billion

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Forex reserves, BoP

Mains level: India's forex reserves and its implications

India’s forex reserves zoomed by $10.417 billion to $572 billion, making it one of the biggest weekly jumps in recent times.

Recent trends in FOREX Reserves

  • In the previous reporting week, the overall reserves had dropped by $1.268 billion to $561.583 billion.
  • In October 2021, the country’s forex reached an all-time high of $645 billion.
  • The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments.
  • In October 2022, the reserves had swelled by $14.721 billion during a week.

What is Foreign Exchange (Forex) Reserve?

  • Foreign exchange reserves are important assets held by the central bank in foreign currencies as reserves.
  • They are commonly used to support the exchange rate and set monetary policy.
  • In India’s case, foreign reserves include Gold, Dollars, and the IMF’s quota for Special Drawing Rights.
  • Most of the reserves are usually held in US dollars, given the currency’s importance in the international financial and trading system.
  • Some central banks keep reserves in Euros, British pounds, Japanese yen, or Chinese yuan, in addition to their US dollar reserves.

India’s forex reserves cover:

  1. Foreign Currency Assets (FCAs)
  2. Special Drawing Rights (SDRs)
  3. Gold Reserves
  4. Reserve position with the International Monetary Fund (IMF)

Countries with the highest foreign reserves

  • Currently, China has the largest reserves followed by Japan and Switzerland.
  • India earlier overtook Russia to become the fourth-largest country with foreign exchange reserves. (Data from August 2022)
  1. China – $3,349 Billion
  2. Japan – $1,376 Billion
  3. Switzerland – $1,074 Billion
  4. Russia – $597.40 Billion

Why are these reserves so important?

  • All international transactions are settled in US dollars and, therefore, required to support India’s imports.
  • More importantly, they need to maintain support and confidence for central bank action, whether monetary policy action or any exchange rate intervention to support the domestic currency.
  • It also helps to limit any vulnerability due to sudden disturbances in foreign capital flows, which may arise during a crisis.
  • Holding liquid foreign currency provides a cushion against such effects and provides confidence that there will still be enough foreign exchange to help the country with crucial imports in case of external shocks.

Initiatives taken by the government to increase forex

  • To increase the foreign exchange reserves, the Government of India has taken many initiatives like AatmaNirbhar Bharat, in which India has to be made a self-reliant nation so that India does not have to import things that India can produce.
  • Other than AatmaNirbhar Bharat, the government has started schemes like Duty Exemption Scheme, Remission of Duty or Taxes on Export Product (RoDTEP), Nirvik (Niryat Rin Vikas Yojana) scheme, etc.
  • Apart from these schemes, India is one of the top countries that attracted the highest amount of Foreign Direct Investment, thereby improving India’s foreign exchange reserves.

 

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North-East India – Security and Developmental Issues

PM greets people on Statehood day of Tripura, Manipur, Meghalaya

Note4Students

From UPSC perspective, the following things are important :

Prelims level: States reorganization in India

Mains level: Read the attached story

state

Prime Minister has greeted people of three northeast states- Tripura, Manipur and Meghalaya on their Statehood Day.

What is the news?

  • Today marks the 51st anniversary of the formation of the states, which were created on this day in 1972.
  • While Manipur and Tripura were princely states which were absorbed into India in October 1949, Meghalaya, on the other hand, was part of Assam.
  • The states came into being the North-Eastern Areas (Reorganisation) Act, 1971, enacted on December 30 that year.

Quick backgrounder

  • These states attained statehood under the North Eastern Region (Reorganization) Act of 1971.
  • The NE composition consisted of Assam plains from the old Assam Province, the hill districts, and the North Eastern Frontier Tracts (NEFT) of the North-Eastern borderland.
  • Later on the NE region was turned into seven sisters with the statehood of Manipur, Tripura, Meghalaya, Assam, Mizoram, Arunachal Pradesh, and Nagaland.

[1] Meghalaya

  • Apart from accounts of the more essential Khasi kingdoms in the chronicles of the neighbouring Ahoms and Kacharis, little is known of Meghalaya prior to the British rule.
  • However, in the early 19th century, the British desire to build a road through the region to link Bengal and Assam led to a treaty with the ruler (Syiem) of the Khasi principality of Nonkhlaw.
  • In 1829, opponents of the treaty persuaded the Syiem to repudiate it, and a subsequent attack on Britishers led inevitably to its military operations against the Khasis.
  • By the mid-1830s, most local rulers had submitted to the British.
  • For the next century, the British exercised its political control over the area, then known as the Garrows and Cossiya (Khasi) States, but the tribals who were left to fend themselves managed to preserve their traditional culture in seclusion.

Integration into India

  • In 1947, the rulers of the region acceded to the newly independent India.
  • The first PM Nehru evolved a policy to preserve and protect the culture of the tribal people.
  • The region was given special protection in the Indian constitution along with other tribal areas, and it retained a great deal of autonomy.
  • In 1960, when Assamese became the state’s official language, agitation for autonomy and self-rule gathered strength.
  • Unlike many other hill regions in north-eastern India, this movement was largely peaceful and constitutional.
  • In 1970, Meghalaya became an autonomous state within Assam and achieved full statehood on January 21, 1972.

[2] Manipur

  • Over 500 princely states had negotiated their accession to the Indian union before independence.
  • According to News Nine, the rulers of these states signed a document called the ‘Instrument of Accession’.
  • On August 11, 1947, Bodhachandra Singh, then Maharaja of Manipur, signed the document. He had been assured that the autonomy of Manipur would be maintained.
  • Elections were held in Manipur in June 1948, but its legislative assembly had differences of opinion on the merger.
  • However, the Maharaja signed a Merger Agreement with India in September 1949.

[3] Tripura

  • Maharajas of the Manikya dynasty ruled the former princely state of Tripura.
  • It was an independent administrative unit under the Maharaja even during British rule in India.
  • However, according to Tripura State Portal, this independence was qualified, subject to the Britishers’ recognition, as the paramount power of each successive ruler.
  • As per Rajmala, in the royal chronology of Tripura, around 184 kings ruled over the state before it merged with the Indian Union on October 15, 1949.
  • Since then, the history of Tripura has been interspersed with various political, economic and social developments.

Attainment of full statehood

  • On January 26, 1950, Tripura was accorded the status of a ‘C’ category state, and on November 1, 1956, it was recognized as a Union Territory.
  • With its people’s sustained efforts and struggle, it gained full statehood on January 21, 1972, as per the North-East Reorganisation Act, 1971.
  • Its democratic set-up further stretched to the village level in 1978 with an election to the local bodies that ultimately culminated in introducing a three-tier Panchayati Raj System.

 

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