Note4Students
From UPSC perspective, the following things are important :
Prelims level: NATO
Mains level: Read the attached story
NATO Secretary-General said that Finland will become the 31st member of the military alliance.
What is the North Atlantic Treaty?
- North Atlantic Treaty, often referred to as the Washington Treaty, states the parties to the treaty seek to promote stability and well-being in the North Atlantic area.
- The signatories affirm their faith in the purposes and principles of the UN Charter and express their desire to live in peace with all people and governments, the treaty states.
|
|
| Establishment |
April 4, 1949 |
| Headquarters |
Brussels, Belgium |
| Membership |
30 member countries, including the United States, Canada, and most of Europe |
| Objective |
Collective defense against external aggression and the preservation of peace and security |
| Article 5 |
Collective defense clause which states that an attack on one member is an attack on all members |
| Military Commanders |
Supreme Allied Commander Europe (SACEUR) and Supreme Allied Commander Transformation (SACT) |
| Main Decision-Making Body |
North Atlantic Council (NAC) |
| Funding |
Contributions from member countries, based on a cost-sharing formula |
| Partnerships |
NATO has partnerships with several countries and international organizations, including Australia, Japan, South Korea, and the United Nations |
| Criticisms |
Criticized for its role in the Cold War and for its intervention in conflicts outside of Europe, such as the war in Afghanistan |
What is the process for securing NATO membership?
| Process for Securing NATO Membership |
Description |
| Establishment of consensus |
Member countries establish consensus about a country’s potential membership. |
| Invitation to join Membership Action Plan (MAP) |
Applicant countries may be invited to join MAP. This provides preparatory advice, assistance, and practical support tailored to their specific needs. It concludes with the formal timetable for the completion of prerequisite reforms. |
| Annual feedback report |
NATO draws an annual report providing feedback to the aspirant country about its progress in their annual national programmes, and identifying areas for further action. |
| Confirmation of intent |
NATO experts and representatives of the invited countries meet in Brussels to obtain formal confirmation of the invitee’s willingness and ability to meet the political, legal, and military obligations and commitments of NATO membership. |
| Issue of letter of intent |
The applicant country issues a formal letter of intent to NATO, confirming the obligations and commitments of the organization. |
| Necessary amendments and ratification |
The necessary amendments are made to make the invitee a party to the Washington Treaty, followed by ratification of the applicant country’s constitutional protocols for facilitating membership. |
| Acceding to the Treaty |
Secretary-General calls the potential new members to accede to the North Atlantic Treaty. This is after all NATO members notify their acceptance to the government of the United States, the depository of the Washington Treaty, about the applicant. |
| Membership confirmed |
Following the invitee depositing their instruments of accession with the US State Department, the applicant becomes a member of NATO. |
The MAP obligations
| Chapter |
Issues identified |
| Political and Economic |
Settle disputes peacefully, promote human rights and democracy, refrain from force, contribute to collective defence, establish civilian control of armed forces |
| Defence |
Improve military capabilities, participate in Partnership for Peace Programme, contribute to collective defence planning, ensure interoperability |
| Resources |
Allocate sufficient budget resources, contribute to NATO’s common-funded activities |
| Security |
Ensure security of sensitive information in adherence to NATO security policy |
| Legal |
Scrutinize domestic law for compatibility with NATO rules and regulations |
Current applicants and members
| Year |
New Members |
| Formation: 1949 |
Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, Netherlands, Norway, Portugal, UK, US |
| 1952 |
Greece, Turkey |
| 1955 |
West Germany |
| 1982 |
Spain |
| 1999 |
Czech Republic, Hungary, Poland |
| 2004 |
Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, Slovenia |
| 2009 |
Croatia, Albania |
| 2020 |
North Macedonia |
Why does Russia fume over NATO?
- NATO’s expansion: Russia views NATO’s expansion into Eastern Europe as a threat to its security and influence in the region. The alliance’s decision to accept former Soviet republics and Warsaw Pact members as members is seen by Russia as a direct challenge to its strategic interests.
- Military exercises: Russia has also expressed concern over NATO military exercises in the region, which it sees as a provocation and a show of force. NATO’s decision to station troops and equipment in Eastern Europe has also been criticized by Russia.
- Missile defense system: Russia has been particularly critical of NATO’s missile defense system, which it sees as a threat to its own nuclear deterrence capabilities. Russia argues that the system is designed to neutralize its strategic weapons and that it undermines global strategic stability.
- Ukraine and Georgia: Russia has accused NATO of interfering in the affairs of Ukraine and Georgia, two former Soviet republics that are seeking closer ties with the West. Russia sees NATO’s support for these countries as an attempt to encircle and contain Russia.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: RLV
Mains level: Read the attached story
The Indian Space Research Organisation (ISRO) conducted a successful autonomous landing mission experiment for a Reusable Launch Vehicle (RLV) at the Aeronautical Test Range in Chitradurga, Karnataka.
What is a Reusable Launch Vehicle (RLV)?
- RLV is a type of spacecraft that is designed to be reused multiple times for launching payloads into space, instead of being discarded after a single launch like traditional rockets.
- They are seen as a more cost-effective and sustainable option for space launches, as they reduce the need for manufacturing new rockets for each mission.
- They typically consist of a reusable orbiter, similar to a space shuttle, and a reusable booster that provides the initial thrust needed to lift the orbiter and payload into space.
- After the payload is released into orbit, the orbiter and booster return to Earth and land back on a runway, where they can be refurbished and reused for future launches.
Why developing RLV is a big feat?
Developing RLVs requires advanced technologies, including-
- Heat-resistant materials for protecting the spacecraft during re-entry into Earth’s atmosphere
- Advanced guidance and control systems for landing and
- Reliable propulsion systems for launching and landing
ISRO’s RLV-TD project
- ISRO is developing essential technologies for a fully reusable launch vehicle to enable low-cost access to space.
- The RLV-TD is being used to develop technologies like hypersonic flight (HEX), autonomous landing (LEX), return flight experiment (REX), powered cruise flight, and Scramjet Propulsion Experiment (SPEX).
- It looks like an aircraft and consists of a fuselage, a nose cap, double delta wings, and twin vertical tails.
Development of RLV
(1) First RLV experiment:
- In 2016, the RLV-TD was launched into space on a rocket powered by a conventional solid booster (HS9) engine.
- The spacecraft travelled at a speed of Mach 5 when re-entering the earth’s orbit and travelled a distance of 450 km before splashdown in the Bay of Bengal.
- Critical technologies such as autonomous navigation, guidance and control, reusable thermal protection system, and re-entry mission management were successfully validated.
(2) Second RLV experiment:
- The RLV LEX test on April 2, 2023, involved a Chinook Helicopter lifting the RLV LEX to a height of 4.5 km and releasing the RLV.
- After midair release, the RLV carried out an autonomous landing on the Aeronautical Test Range airstrip, under the exact conditions of a Space Re-entry vehicle’s landing.
- It achieved landing parameters as might be experienced by an orbital re-entry space vehicle in its return path.
Advantages of RLVs
- Reusable launch vehicles are considered a low-cost, reliable, and on-demand mode of accessing space.
- The cost of a launch can be reduced by nearly 80 percent of the present cost by using RLVs.
Global RLV technologies
- NASA space shuttles have been carrying out dozens of human space flight missions.
- The private space launch services provider SpaceX demonstrated partially reusable launch systems with its Falcon 9 and Falcon Heavy rockets since 2017.
- SpaceX is also working on a fully reusable launch vehicle system called Starship.
- Several private launch service providers and government space agencies are working on developing reusable launch systems.
Significance
- RLVs have the potential to significantly reduce the cost of space launches, as a significant portion of the cost of traditional rockets comes from the need to manufacture new rockets for each mission.
- By reusing spacecraft, the cost per launch can be significantly reduced.
- Additionally, RLVs can provide greater flexibility and reliability for space launches, as they can be launched on-demand instead of needing to be manufactured and assembled for each mission.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ice Memory Project
Mains level: Not Much
Scientists from Italy, France, and Norway have set up camp in Norway’s Svalbard archipelago to extract samples of ancient ice for analysis before the frozen layers melt away due to climate change.
‘Ice Memory’ Project
- Scientists will drill a series of tubes as far as 125 meters (137 yards) below the surface, which contains frozen geochemical traces dating back three centuries.
- The scientists will work for three weeks in temperatures as low as -25 degrees Celsius (-13 Fahrenheit) to extract ice.
- The Ice Memory foundation is running the operation.
- The ice cores will provide scientists with valuable data about past environmental conditions.
Analysis and storage
- One set of ice tubes will be used for immediate analysis, while a second set will be sent to Antarctica for storage in an “ice memory sanctuary” under the snow.
- The samples will be preserved for future generations of scientists.
Reason for drilling
- The Arctic is warming between two and four times faster than the global average, and water from melting ice is altering the geochemical records preserved in ancient ice beneath.
- Hence, scientists are in a race against time to preserve crucial ice records before it disappears forever from the surface of the planet.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SNAP 10A
Mains level: Not Much
Central idea: The newscard is about the US government-sponsored System for Nuclear Auxiliary Power (SNAP) program, also known as SNAPSHOT for Space Nuclear Auxiliary Power Shot, and its SNAP-10A space nuclear reactor.
What is SNAP-10A?
|
|
| SNAP-10A |
A nuclear reactor sent to space by the US in 1965 |
| SNAP program |
A government-sponsored program for developing compact, lightweight, and reliable atomic devices for use in space, sea, and land |
| Objective |
To produce at least 500 watts of electricity for a year or longer in Earth orbit |
| Components |
Enriched uranium fuel with zirconium hydride as a moderator, and liquid sodium-potassium alloy as the coolant |
| Conversion |
A thermoelectric converter was used to directly convert heat from the reactor into electricity |
| Payload |
Weighed less than 431 kg, including the instruments and shielding, and was designed to be remotely started and operated in space |
| Launch |
April 3, 1965, on an Atlas-Agena D rocket from Vandenberg Air Force Base and placed in a polar orbit |
| Operations |
Achieved on-orbit criticality within six hours of startup and set to autonomous operation at full power after 200 hours of reactor operations |
| Contact loss |
Contact was lost with SNAP-10A for about 40 hours on May 16, 1965, and the reactor’s reflectors ejected from the core, causing the core to shut down and bringing an end to the reactor’s operations |
| Test objectives |
All test flight objectives were met, except the length of operation, which was just 43 days as opposed to the expected year or more |
| Significance |
Only known nuclear reactor sent to space by the US, while Russia has sent several, including one that crashed and scattered radioactive debris over Canada in 1978 |
| Current status |
Continues to be in Earth orbit, and NASA expects it to do so for 2,000 years or more |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ferns, ENP
Mains level: NA
Eravikulam National Park, located in Munnar, India, is known for its natural habitat of Nilgiri Tahr, and has recently introduced a new attraction – a Fernarium.
What are Ferns?
- Ferns are a type of vascular plant that reproduces via spores, rather than seeds.
- They have distinctive leaves, called fronds, which are often intricately divided into smaller leaflets.
- Ferns can grow in a wide variety of environments, from rainforests to deserts, and they play an important role in many ecosystems as a habitat for animals, as well as by providing food and shelter for a variety of other plants.
Importance of Ferns
- Ferns are ecological indicators of healthy forests, and the climatic conditions inside the park are suitable for growing ferns.
- Ferns are part of the Epiphytic family and grow naturally in soilless conditions.
- They obtain water and nutrients through leaching from trees, and a large number of ferns are found on trees inside the park.
Fernarium @ Eravikulam
- The Fernarium is a collection of ferns and it is the first of its kind in Munnar.
- Currently, 52 varieties of ferns have been planted, and the plan is to cover all 104 varieties that are found in the park.
- This initiative aims to provide visitors with awareness about the biodiversity of the park.
Back2Basics: Eravikulam National Park
| Location |
Perched 7000 ft. above sea level, the Park was a former hunting preserve of British planters |
| Designation |
Declared a Sanctuary in 1975, and a National Park in 1978 |
| Significance |
Protects the highly endangered mountain goat, Nilgiri Tahr, and is the land of the Neelakurinji flower that blooms once in twelve years |
| Extent |
Covers an area of 97 sq. km of rolling grasslands and high-level sholas |
| Climate |
Receives heavy showers during the southwest (June/July) and retreating (October/November) Monsoons; one of the wettest areas in the world |
| Topography |
Undulating terrain with grass, hillocks, and sholas; highest peak south of the Himalayas, the Anamudi, is located here |
| Vegetation |
Majorly covered with rolling grasslands, with several patches of shola forests; important flora includes Actinodaphne bourdilloni, Microtropis ramiflora, Strobilanthus Kunthianus (Neela Kurinji), etc. |
| Wildlife Population |
29 species of mammals, including the endemic Nilgiri Tahr, Gaur, Sloth Bear, Nilgiri Langur, Tiger, Leopard, Giant Squirrel, and wild dog; 140 species of birds, including 10 unique to the Western Ghats; more than 100 varieties of butterflies and 20 species of amphibians are also recorded here. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mission Karmayogi
Mains level: Citizen-Centric Governance, initiatives and Citizen participation
Central idea
- Citizen-centric governance is an evolving concept, and to put it into action requires clarity in the actions that civil servants perform and how citizens engage with the state. Citizen engagement is about collaborative partnerships and dialogue and must involve all stakeholders to ensure the overall development of a community or a nation.
Citizen-Centric Governance
- Paradigm shift in traditional governance: Citizen-centric governance refers to a paradigm shift in the traditional governance structures where the focus is shifted from the power holders to the citizens.
- Access to information and services to citizens: Traditionally, governance structures hold the power to make decisions that affect the lives of citizens. But citizen-centric governance focuses on providing citizens with access to information, services, and resources and on engaging them in the policy-making process.
- Increased citizen participation: The objective of citizen-centric governance is to increase citizen participation in decision-making processes
Mission Karmayogi
- Capacity building of civil servants: Mission Karmayogi, the National Programme for Civil Services Capacity Building has been strategically working to build the capacities of civil servants through various innovative interventions to sensitise and reframe the fabric of citizen participation.
- karmachari to karmayogi: Today, thousands of railway employees, Gramin Dak Sevaks, police personnel in the UTs and employees of BSNL are all going through an outcome-based capacity-building programme that is shifting them from thinking like a karmachari to acting like a karmayogi.
Citizen Engagement
- Citizen engagement refers to how citizens participate in the political, social and economic aspects of their community or society.
- Citizen engagement is highly embedded in the nature of the political and governance context and existing power relations.
- It needs to be understood as a core component of any governance system, and in democracies, citizen engagement is a basic principle because it is understood that governments derive their authority and power from the people.
What the multi-stakeholder engagement requires?
- Constructive dialogue: Development by the people and for the people is indeed possible. Citizen engagement towards democratising the process of development necessarily involves a constructive dialogue between and amongst all stakeholders.
- Mutual trust and respect: Meaningful dialogue among the stakeholders the state, citizenry, private sector, media, civil society and academia can sustain only when there is mutual trust. The relationship between these multiple stakeholders needs to be driven by mutual respect and an appreciation of interdependence and reciprocity.
- Redrawing boundaries of engagement: However, this may involve redrawing boundaries of engagement and roles that stakeholders have traditionally assumed for themselves.
- Partnership approach: The multi-stakeholder engagement would require the adoption of the partnership approach by all parties involved.
Conclusion
- Citizen-centric governance and citizen engagement are important aspects of development in any democracy. By adopting a partnership approach and mutual respect for each other’s roles, stakeholders can work together to ensure the overall development of a community and nation at large. The Indian government’s program, Mission Karmayogi, is a right step towards building the capacities of civil servants and sensitizing them to citizen participation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Autism
Mains level: Autism spectrum disorders, Prevalence in India and way ahead
Central Idea
- In India, the prevalence of autism spectrum disorders (ASD) is a widely debated issue due to a lack of systematic estimates. Most estimates have been derived from studies based on school children, revealing that over one crore Indians may be on the autism spectrum. However, there are notable cultural differences in diagnosing autism between countries, which highlights the need to assess the prevalence of autism spectrum disorders specifically in the Indian context.
What is Autism?
- Spectrum disorder: Autism, also known as Autism Spectrum Disorder (ASD), is a neurodevelopmental disorder that affects communication, social interaction, and behaviour. It is called a spectrum disorder because the symptoms and severity can vary widely between individuals.
- Common symptoms: Some common symptoms of autism include difficulty with social interactions, such as maintaining eye contact or understanding nonverbal cues, delayed speech and language development, repetitive behaviors, and sensory sensitivities.
- Cause: Autism is believed to be caused by a combination of genetic and environmental factors, but the exact cause is not yet fully understood.
- Cure: There is currently no cure for autism, but early interventions and therapies can help individuals with autism lead fulfilling and independent lives.
Prevalence of Autism in India
- Lack of systematic estimates: Autism is a global issue and affects individuals of all cultures, ethnicities, and socioeconomic backgrounds. However, there is a lack of systematic estimates of autism prevalence in India.
- Methos failed: Researchers have attempted to estimate prevalence through government hospitals, but this method failed due to the absence of central medical registries.
- Conservative estimates: As a result, prevalence was estimated through school-based assessments. According to conservative estimates, well over one crore Indians are on the autism spectrum. This highlights the need for further research and attention to address the prevalence of ASD in India.
- Cultural Differences and Diagnosis of Autism:
- Notable cultural differences exist in the diagnosis of autism spectrum disorder. In the US and UK, the majority of children with autism spectrum diagnosis are verbal, with average or higher IQ, and attending mainstream schools.
- However, in India, a significant majority of children with a clinical diagnosis of autism also have intellectual disability and limited verbal ability. This difference is driven by sociological factors, such as access to appropriate clinical expertise, provisions for inclusion in mainstream schools, and availability of medical insurance coverage.
Challenges in Assessing Autism
- Assessment tools: Assessment of autism spectrum disorder is primarily behavioral, and most widely used autism assessment tools are not available in Indian languages.
- Indigenous autism assessment tools challenges: There has been a rise in the development of indigenous autism assessment tools. Despite the development of these tools, it can be challenging to compare across different assessment measures.
Demand and Supply in India
- Shortage of mental health professionals: Most autism assessment tools need to be administered by specialist mental health professionals. However, there is a significant shortage of mental health professionals in India, with less than 10,000 psychiatrists, a majority of whom are concentrated in big cities.
- Delay is costly: Delay in interventions can be costly for neurodevelopmental conditions such as autism.
- Demand and supply gap need to be met: This gap between demand and supply cannot be met directly by specialists alone, and parallel efforts to widen the reach of diagnostic and intervention services through involving non-specialists is required. Emerging evidence suggests the feasibility of involving non-specialists in autism identification and intervention through digital technology and training programs.
Way ahead: Need for an All-India Program
- National program on autism: The need of the hour is to develop a national program on autism in India that links researchers, clinicians, service providers to the end-users in the autism community.
- Essential components: This program needs to have three essential components that are joined up: assessment, intervention, and awareness.
- Assessment: Research is needed to develop appropriate assessments and design efficient implementation pathways.
- Intervention: Clinical and support service workforce needs to be expanded by training non-specialists such that a stepped-care model can be rolled out effectively across the nation.
- Awareness: Large-scale initiatives need to be launched to build public awareness that can reduce the stigma associated with autism and related conditions.
Conclusion
- There are challenges in diagnosing and assessing autism in India which highlights the need for a comprehensive and coordinated effort to address them. By expanding the clinical and support service workforce, training non-specialists, and developing appropriate assessments and interventions, India can improve outcomes for those on the autism spectrum and reduce the stigma associated with the condition. This national program needs to be informed by consultation with different stakeholders, with a primary focus on end-users within the Indian autism community.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ICJ
Mains level: Climate justice and reparations
Central idea: On March 29, the United Nations General Assembly passed a resolution that requested an advisory opinion from the International Court of Justice (ICJ) regarding the obligations countries have towards climate change reduction.
Facts for prelims: International Court of Justice (ICJ)
- The ICJ is the principal judicial organ of the United Nations (UN).
- It was established in June 1945 by the Charter of the United Nations and began work in April 1946.
- The court is the successor to the Permanent Court of International Justice (PCIJ), which was brought into being through, and by, the League of Nations.
- It held its inaugural sitting at the Peace Palace in The Hague, Netherlands, in February 1922.
- After World War II, the League of Nations and PCIJ were replaced by the United Nations and ICJ respectively.
- The PCIJ was formally dissolved in April 1946, and its last president, Judge José Gustavo Guerrero of El Salvador, became the first president of the ICJ.
- Four Indians have been members of the ICJ so far.
- Justice Dalveer Bhandari, former judge of the Supreme Court, has been serving at the ICJ since 2012.
|
Vanuatu seeks climate reparations
- The resolution, which was passed by consensus, was pushed through by the Pacific Island of Vanuatu, which was devastated by Cyclone Pam in 2015.
- This resolution is significant because it invokes article 96 of the U.N. Charter and seeks to clarify the legal obligations of states to protect the climate system.
Resolution A/77/L.58: What does it seek?
The draft resolution (A/77/L.58) asks the ICJ to deliberate on two questions:
- Obligations of states: Under international law to ensure the protection of the climate system for present and future generations
- Legal consequences: For states that have caused significant harm to the climate system, particularly for Small Island Developing States (SIDS) and for people who are harmed?
Frameworks invoked by Vanuatu
The resolution refers to several international protocols, including the-
- Paris Agreement
- United Nations Convention on the Law of the Sea and
- Universal Declaration of Human Rights
What do sponsors of the resolution want?
- The sponsors of the resolution expect an advisory opinion from the ICJ to bolster the efforts under the global climate pledge.
- The opinion is also expected to clarify more contentious issues, such as-
- Climate reparations by the developed world,
- Legal culpability for countries that don’t achieve their NDC promises
- Climate support to the most vulnerable parts of the world
Where does India stand over this?
- India has been silent about the resolution, although it is generally supportive of climate justice and holding the developed world accountable for global warming.
- India did not co-sponsor the draft resolution, unlike its neighbors Bangladesh, Maldives, Nepal, and Sri Lanka.
If ICJ intervenes, what would change?
- Only advisory opinion: The ICJ is being asked for an advisory opinion, which would not be legally binding as an ICJ judgment.
- Puts moral obligation: The ICJ carries “legal weight and moral authority”.
- Symbolic significance: ICJ’s clarification of international environmental laws would make the process more streamlined, particularly as the COP process looks at various issues like climate finance, climate justice, and the most recently agreed to “loss and damages” etc.
Conclusion
- The resolution passed by the UNGA requesting an advisory opinion from the ICJ is a step in the right direction towards clarifying the legal obligations of states to mitigate climate change and protect the environment for future generations.
- To ensure the success of this effort, countries need to continue to engage in diplomatic efforts and work towards shared goals.
- Countries should also actively participate in the ICJ process and respect the advisory opinion it delivers.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Vostro and Nostro Accounts, SWIFT
Mains level: Trade settlement in Rupees
India and Malaysia have agreed to settle their trade in Indian rupees instead of the US dollar.
What is the move?
- The Reserve Bank of India (RBI) had allowed the settlement of international trade in the Indian rupee in July 2022.
- Malaysia was one of the eighteen countries that were permitted to open Special Rupee Vostro Accounts (SRVAs) to settle payments in Indian rupees.
Volume of bilateral trade
- India-Malaysia bilateral trade reached $19.4 billion during 2021-22.
- Malaysia is the third-largest trading partner of India in the ASEAN region, after Singapore and Indonesia, with $30.1 billion and $26.1 billion in bilateral trade with India.
Facts for prelims: Nostro and Vostro Accounts
Nostro and vostro accounts are two types of accounts used in international trade and banking to facilitate foreign currency transactions.
A Nostro account is a foreign currency account held by a domestic bank in a foreign bank. It is used to facilitate international transactions, such as foreign currency payments, and to hold foreign currency deposits. The word “nostro” means “ours” in Italian, and the term reflects the fact that the foreign bank holds the domestic bank’s funds on its behalf.
A Vostro account, on the other hand, is a domestic currency account held by a foreign bank in a domestic bank. It is used by the foreign bank to hold domestic currency deposits, and to facilitate domestic currency transactions such as payments to local vendors. The word “vostro” means “yours” in Italian, and the term reflects the fact that the domestic bank holds the foreign bank’s funds on its behalf. |
What are Special Rupee Vostro Accounts (SRVAs)?
- SRVAs are a mechanism introduced by the RBI to allow banks from certain countries to open accounts in Indian rupees with Indian banks.
- These accounts can be used to settle trade transactions between the two countries in Indian rupees, instead of using other currencies.
- The aim of this initiative is to facilitate the growth of global trade and to support the interests of the global trading community in Indian rupees.
- The Union Bank of India has become the first bank in India to operationalize this option by opening a SRVA through its corresponding bank in Malaysia – India International Bank of Malaysia.
- Banks from 18 countries so far are allowed by the RBI to open Special Rupee Vostro Accounts (SRVAs) to settle payments in Indian rupees.
Significance of the move
- The move aims to provide better pricing for goods and services traded between the two countries and overcome currency-related obstacles that have affected bilateral trade.
- This shift away from the US dollar signals India’s de-dollarization efforts.
- The decision also comes against the backdrop of ongoing official efforts to safeguard Indian trade from the impact of the Ukraine crisis.
Broader implications
- The sanction on the Russian economy and the ongoing war in Ukraine have made it increasingly difficult to make payments to Russia in US dollars.
- Many countries are exploring alternatives to the US dollar as the dominant reserve currency for international trade.
Try this MCQ
Q. Which of the following is a key difference between Nostro and Vostro accounts?
A) A Nostro account is held by a bank in a foreign country, while a Vostro account is held by a bank in the home country.
B) A Vostro account is used for incoming transactions, while a Nostro account is used for outgoing transactions.
C) A Nostro account is denominated in the local currency of the home country, while a Vostro account is denominated in a foreign currency.
D) A Vostro account is used for trade financing, while a Nostro account is used for personal banking transactions.
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: 6G Technology
Mains level: Read the attached story
Central idea: Despite over 45,000 Indian villages lacking 4G connectivity and ongoing efforts to build out 5G networks, the Indian government has set its sights on 6G.
Why in news?
- On March 22, PM Modi unveiled the Bharat 6G Vision Document, aimed at gearing up policymakers and the industry for the next generation of telecommunications.
What is 6G?
- 6G is the next generation of wireless telecommunications technology, which is expected to offer significantly faster data speeds, higher bandwidth, and lower latency than 5G.
- It is still in the development stage, and its commercial rollout is not expected for several years.
- However, many countries, including India, are already working on developing 6G technology and setting standards for its implementation.
Differences between 6G and 5G
- While 6G will offer faster loading times, improved video quality, and faster downloads, like every new generation of technology, it is unclear how much better it will be.
- With latency already at the speed of light on existing networks, the benefits of 6G will depend on how different groups plan to use the spectrum.
- Satellite constellations will join telecom towers and base stations, integrating networks and extending them to rural areas.
Motivations for pursuing 6G
- Encourage local industry: The Indian government hopes to encourage local manufacturing of telecom gear and support Indian companies and engineers in international discussions around standardization.
- Avoid delay unlike 5G: India aims to avoid the delay in previous generations of telecommunications technology, which started rolling out in India years after countries like South Korea and the United States.
- Increased connectivity: Additionally, the lower frequency in 4G networks may not be able to keep up with the demand for traffic with increasing data usage, making 6G a necessity.
Government Plans for 6G
- The Indian government plans to financially support “research pathways” to advance connectivity goals and establish an “apex body”.
- India’s 6G goals include-
- Guaranteeing every citizen a minimum bandwidth of 100Mbps
- Ensuring every gram panchayat has half TB (terabyte) per second of connectivity, and
- Providing over 50 million internet hotspots with thirteen per square kilometre.
Roadmap for 6G in India
- The government plans to implement 6G in two phases.
- Phase 1 will support explorative ideas, risky pathways, and proof-of-concept tests.
- Phase 2 will support ideas and concepts that show promise for global acceptance, leading to commercialisation.
- It would appoint an apex council to oversee the project and deal with standardisation, identification of spectrum, finances for research and development, and more
- The council will finance research and development of 6G technologies by Indian start-ups, companies, research bodies, and universities.
- Key focus of the council will be on new technologies such as Terahertz communication, radio interfaces, tactile internet, and artificial intelligence.
- Bharat 6G Mission aligns with the national vision of Atmanirbhar Bharat and aims to make India a leading supplier of advanced telecom technologies that are affordable and contribute to the global good.
Approaches to 6G in Other Countries
- South Korea plans significant investments in 6G technology development, with a focus on laying the ground for key original technologies and domestic production of core equipment and components.
- Countries are also starting to work together, with Japan and Germany planning a workshop to work on everything from “fundamental technologies to demonstrations.”
- Europe’s equivalent of the Indian 6G Vision Document emphasizes leadership in strategic areas and establishing secure and trusted access to key technologies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Deep Sea Mining
Mains level: Not Much
Central idea: The International Seabed Authority has announced that it will start accepting applications from companies for deep sea mining from July.
Why in news?
- This decision was made in the absence of a mining code that has not been put in place yet.
What is Deep Sea Mining?
- Deep-sea mining is the process of extracting minerals from the deep ocean floor.
- The minerals that are extracted can include valuable metals such as copper, gold, nickel, and manganese, as well as rare earth metals that are used in high-tech devices such as smartphones, computers, and electric vehicles.
- The minerals are found in the form of polymetallic nodules that are located on the ocean floor at depths of around 4 to 6 kilometers.
- Deep-sea mining involves the use of specially designed equipment that can withstand the extreme pressure and temperature conditions found at these depths.
About International Seabed Authority
- The International Seabed Authority is a Jamaica-based organization established under the United Nations Convention on the Law of the Sea.
- The authority holds jurisdiction over the ocean floors outside of the Exclusive Economic Zones of its 167 member states.
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Reasons behind undersea mining
- The mining is aimed at extracting cobalt, copper, nickel, and manganese from the ocean’s floor.
- The undersea mining will extract key battery materials from polymetallic nodules found at depths of 4 kilometers to 6 kilometers.
- These nodules are potato-sized rocks containing cobalt, copper, nickel, and manganese.
Key concern: Mining code missing
- Despite 10 years of discussion, there is no mining code in place.
- The governing council of ISA is uncertain about the process it should adopt for reviewing applications for mining contracts.
Issues with deep-sea mining
- Deep-sea mining is a controversial issue that has raised concerns among non-governmental organizations, experts, and some countries.
- One major concern is the potential damage to the seabed and the essential function of deep-sea ecosystems in regulating the climate.
- Mining activities can also have wider impacts on fish populations, marine mammals, and other ocean life.
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India’s Deep Ocean Mission
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Green Hydrogen, Carbon Laser
Mains level: Not Much
Scientists at IIT Mandi have created an innovative carbon-based catalyst that can enhance the efficiency of water electrolysis to generate green hydrogen.
Water electrolysis and its Challenges
- Water electrolysis is the process of splitting water molecules into hydrogen and oxygen using electricity inside an electrolyser.
- However, this process consumes a lot of electrical energy.
- A well-known solution is to use a catalyst to induce the water molecules to split at a much lower energy.
- The better catalysts are often based on the metals iridium and ruthenium, which are expensive, in great demand in other sectors, and not consistently stable as the reaction progresses.
IIT’s breakthrough: Development of Laser Carbon
- Researchers have developed a porous carbon material containing nitrogen that functions both as a catalyst and as the anode in electrolyser units.
- This material, called “laser carbon,” was produced by exposing a sheet of a polymer called polyimide to a laser beam, which carbonised the exposed bits, leaving the remainder rich in nitrogen.
How does laser carbon work?
- The nitrogen atoms in laser carbon draw electron clouds towards themselves, rendering the nearby carbon atoms to bond with atoms or molecules containing electron pairs.
- This makes the location of these atoms active sites for the oxygen evolution reaction (OER).
- OER is a bottleneck in this ideal reaction process because it proceeds slowly, with many intermediate steps, lowering the total reaction efficiency.
- Laser carbon offers to fix this problem by reducing the OER overpotential, which means the reaction kicks off sooner and proceeds with more vigor.
Advantages of laser carbon
Laser carbon has several advantages over other carbon-based catalysts.
- It is “highly power efficient,” cheaper to produce, has a simpler synthesis technique, and “can be batch-manufactured with a laser.”
- The manufacturing process is also environment-friendly, as no waste is generated, and there are no wet chemicals that would require disposal.
- Additionally, it does not require a substrate as it is self-supported in the form of a film, acting as both electrode and electrocatalyst.
Challenges
- The catalytic activity of laser carbon may not be as high as that of some metals but is comparable.
- Further improvements in the fabrication process and use of other polymers may address this challenge.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kala Azar
Mains level: Not Much
Central idea: The Kolkata-based Indian Association for the Cultivation of Science (IACS) have established the potential of quinoline derivatives to treat drug-resistant leishmaniasis, which is also called kala-azar or black fever.
What is Kala Azar?
- Kala-Azar is a vector-borne (sandfly) neglected tropical disease caused by the protozoan parasites of the genus leishmania.
- It afflicts the world’s poorest populations in over 90 countries throughout Asia, Africa, the Middle East, and Central and South America.
- Current annual estimates of kala-azar are about 1,00,000.
- More than 95% of cases reported to the WHO are from India and other tropical countries, most importantly co-infection with HIV, which leads to an immunocompromised state.
How does Quinoline work over this?
- The quinoline derivative is a potent inhibitor of an enzyme called topoisomerase 1 (LdTop1).
- This enzyme is essential for the maintenance of DNA architecture in parasites and is distinct from the one found in humans.
- Poisoning LdTop1 imparts significant cytotoxicity to both Leishmania parasites found in the gut of sandfly vectors (promastigotes) and those found in infected humans (amastigotes) of both the wild type and the antimony-resistant isolates.
- This is done without inducing lethality to human and mice host cells.
Significance of quinoline treatment
- Overcoming drug resistance in clinical leishmaniasis is a severe challenge in rural India.
- The current treatment regimens against kala-azar use formulations that are toxic and induce high levels of drug-resistance.
What is the breakthrough?
- The novel inhibitor targeting the leishmania parasites was identified by screening them against recombinant Leishmania topoisomerase 1 enzyme.
- In all, 21 derivatives were prepared and evaluated for their antileishmanial activity, and one of them was found to be effective.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bandipur Tiger Reserve
Mains level: Read the attached story
Central idea: Bandipur completed 50 years as a Project Tiger Reserve on April 1, 2023.
Bandipur Tiger Reserve
- The reserve is located in the Indian state of Karnataka and is spread over an area of 912.04 sq. km.
- It is recognized as one of the prime tiger habitats in the world and is an important component of the country’s first biosphere reserve – Nilgiri Biosphere Reserve.
Tiger Population in Bandipur
- When Project Tiger was launched in 1973, there were 12 tigers in Bandipur, according to Ramesh Kumar, director, of Bandipur Tiger Reserve.
- Today, the number of tigers utilizing the park is 173 while the number of tigers within the reserve has been pegged at 126 as per the Status of Tigers Co-predators and Prey in India, 2018.
History of conservation efforts in Bandipur
- Much before the Wildlife Conservation Act, 1972, was passed, the erstwhile rulers of Mysuru had realized the importance of conserving flora and fauna.
- The Mysore Game and Fish Preservation Act was passed in 1901, and several forest areas were preserved as Game Reserves, and Tiger Blocks were identified with shooting restrictions imposed.
- Initially, an area spread over 35 sq miles was declared as a Game Sanctuary in Chamarajanagar State Forest of Mysore district in 1931 and was protected for 10 years.
Bandipur’s inclusion in Project Tiger
- When Project Tiger was launched in 1973, Bandipur was among the first nine reserves to be brought under the flagship program, and it included most areas that were already protected under the Venugopal Wildlife Park.
- The park was upgraded to a national park and renamed Bandipur, and the adjacent reserve forests were included under it to extend its area to 874.20 sq km.
Significance of the area
- The landscape spanning Bandipur, Nagarahole, Mudumalai, and Wayanad complex is home not only to the highest number of tigers in the country – about 724 – but also to the largest Asian Elephant population.
- The Bandipur Tiger Reserve is an important component of the country’s first biosphere reserve – Nilgiri Biosphere Reserve.
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[Sansad TV] Perspective – Project Tiger: Reclaiming Territories
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Semiconductor and its apllications
Mains level: India's semiconductor policy
Central Idea
- India’s semiconductor policy should shift focus from attracting global giants like Intel to leveraging existing facilities and developing domestic solutions for electronics markets.
Background
- The US Department of Commerce and India’s Ministry of Commerce and Industry recently signed a memorandum of understanding to ensure subsidies do not hinder India’s semiconductor ambitions.
- However, the likelihood of Intel investing in a greenfield 300mm wafer fabrication plant in India remains low due to its focus on fabs in the US.
Facts for prelims: Semiconductors
- Semiconductors are materials that have properties that are in between those of conductors (such as copper) and insulators (such as rubber).
- They have the ability to conduct electricity under certain conditions, but not under others.
- The conductivity of semiconductors can be manipulated through the introduction of impurities or doping with other materials. This process alters the electronic properties of the material and creates regions of excess or deficit of electrons, called p-type and n-type regions respectively. The interface between these regions is known as a p-n junction, which is a fundamental building block of many semiconductor devices.
Applications
- Semiconductors are a fundamental component of modern technology and have significant importance in many areas of our daily lives.
- Electronics industry: Semiconductors are a crucial component in the electronics industry, which is one of the fastest-growing industries in the world. Semiconductors are used in a wide range of electronic devices, from smartphones and computers to medical equipment and home appliances.
- Miniaturization: The ability to miniaturize electronic components using semiconductors has led to the development of smaller, more powerful, and more energy-efficient devices. This has enabled the development of portable devices, such as smartphones and laptops, which have become an essential part of our daily lives.
- Energy efficiency: Semiconductors have enabled the development of energy-efficient devices, which are crucial in the context of climate change and global warming. Energy-efficient lighting, for example, uses semiconductor materials such as LEDs, which consume far less energy than traditional incandescent bulbs.
- Renewable energy: Semiconductors are also essential in the development of renewable energy technologies such as solar cells and wind turbines. Solar cells, for example, use semiconductor materials to convert sunlight into electrical energy.
- Medical applications: Semiconductors are also used in a wide range of medical applications, from imaging devices to implantable medical devices. In particular, semiconductor-based biosensors are becoming increasingly important for disease diagnosis and monitoring.
All you need to know about India’s semiconductor policy
- India has launched a new semiconductor policy called the National Policy on Electronics (NPE) in 2019, with the aim of creating a globally competitive electronics manufacturing industry in the country.
- The policy aims to attract investment in semiconductor fabrication units, also known as fabs, and encourage the development of a domestic ecosystem for semiconductor design and manufacturing.
The key objectives of the policy
- Attracting investment: The policy aims to attract global semiconductor companies to set up manufacturing units in India by providing them with incentives such as financial support, tax incentives, and land at subsidized rates.
- Promoting domestic manufacturing: The policy aims to promote domestic manufacturing of semiconductor components by providing incentives such as production-linked incentives, subsidies, and preferential market access to products made in India.
- Developing human resources: The policy aims to develop a skilled workforce in the semiconductor sector by providing training and education programs in collaboration with leading academic institutions.
- Encouraging research and development: The policy aims to encourage research and development in the semiconductor sector by providing financial support to research institutions and startups.
- India’s Semiconductor History
- The Semi-Conductor Laboratory (SCL) was established in Mohali in 1983 to create an electronics ecosystem.
- Market liberalization in 1991 and a fire in 1989 derailed these plans, but the facility still has the potential to support India’s semiconductor ecosystem.
- Shifting Focus:
- The Ministry of Electronics and Information Technology (MeITy) has been trying to attract Intel to India, but their efforts may not be fruitful.
- A better approach would be to leverage SCL’s existing assets and focus on the More than Moore segment of semiconductors (>180 nm node) for automotive electronics, PV-Inverters, 5G infrastructure, and railway electronics.
- Incentives and Subsidies:
- Subsidies should target fabless design houses with proven designs willing to fabricate at the SCL in the 180nm+ node.
- Incentives should also be provided to global design companies with products aimed at India-specific markets.
- The existing DLI/PLI schemes do not provide such incentives, and a course correction is needed.
- Leveraging Existing Infrastructure:
- Efforts to open up subsidies to global small and medium-sized enterprises in the upstream supply chain are welcome.
- However, coupling these efforts with the defined incentives and targeted upgrades is essential for success.
- Leadership and Execution: To achieve this vision in the next five years, the SCL needs a full-time director with prior “More than Moore” foundry experience, as opposed to a career scientist from the Department of Space.
Conclusion
- India’s semiconductor policy should shift focus from attracting global giants like Intel to leveraging existing facilities and developing domestic solutions for electronics markets. This will require a strategic shift in focus, targeted incentives, and strong leadership. Failure to act may result in India missing out on the semiconductor fabrication bus once again.
Mains Question
Q. Semiconductors are a fundamental component of modern technology. In this light analyze India’s semiconductor policy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Recent Free Trade Agreements
Mains level: Foreign Trade Policy 2023
Central Idea
- Foreign Trade Policy 2023 focuses on shifting from an incentive to a tax remission-based regime, improving the ease of doing business, promoting exports through collaborations, and targeting emerging areas. It aims to achieve $2 trillion in export of goods and services by 2030, up from the previous $900 billion target.
Foreign Trade Policy 2023
- Reducing Friction Points:
- Automatic approvals for various permissions will streamline processes and reduce bureaucratic hurdles for businesses.
- Reduced processing times for revalidation of authorizations (expected to be brought down to one day), extension of export obligation periods, advance authorizations, and EPCG issuances will expedite export activities.
- Lowered application fees for MSMEs will provide financial relief and encourage more small businesses to participate in global trade.
- Supporting Export Growth:
- Facilitating e-commerce exports will enable Indian businesses to tap into the growing global e-commerce market, estimated to reach $6.07 trillion by 2024.
- Widening the basket covered under RODTEP will ensure more exporters benefit from tax remission, increasing competitiveness.
- Boosting manufacturing, particularly in labor-intensive sectors, will create more jobs and enhance the export potential.
- Rationalizing thresholds for exporter recognition will make it easier for businesses to be acknowledged and incentivized for their export performance.
- Merchanting trade reform will promote services exports and reduce transaction costs.
- Promoting the use of the rupee in international trade can help reduce exchange rate risks and increase trade with countries facing currency restrictions.
- One-time Amnesty Scheme: The amnesty scheme aims at faster resolution of trade disputes, clearing pending cases, and improving the overall trade environment.
Supplemental Measures
- Boost to domestic manufacturing: Lowering import tariffs will make raw materials and intermediate goods more affordable, boosting domestic manufacturing and export competitiveness.
- Competitive Indian goods and services: Ensuring a competitive exchange rate will enhance the affordability of Indian goods and services in global markets.
- FTA’s: Signing broader and deeper free trade agreements can open new markets for Indian exporters and attract foreign investments.
Conclusion
- The Foreign Trade Policy 2023 comes at a time of global uncertainty, but with India’s small share in global trade (around 1.8% in merchandise exports and roughly 4% in services), there is significant room for improvement. The new policy, along with additional measures, can enhance the country’s trade performance and achieve the ambitious $2 trillion export target by 2030. However, it is crucial to monitor the policy’s implementation and address potential challenges for businesses to fully reap the benefits.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Taiwan-China conflict and India's role
Central Idea
- India needs to proactively consider its military, diplomatic, and economic responses to a potential cross-strait conflict between China and Taiwan.
Background
- PLA’s frequent military exercises near Taiwan: The People’s Liberation Army (PLA) is conducting frequent military exercises near Taiwan, increasing the risk of escalation in the Taiwan Strait.
- Forceful reunification: Some analysts believe that China, under President Xi Jinping, is preparing for a forceful reunification campaign by 2027.
The impact of a cross-strait conflict between China and Taiwan on India
- Disruption of trade: India’s trade through the South China Sea (SCS) accounts for nearly 55% of its total trade with the Indo-Pacific region. A conflict in the Taiwan Strait could severely disrupt this trade, affecting India’s economy. Additionally, trade with Taiwan, China (India’s second-largest trading partner), East Asia, and some Southeast Asian countries would also be severely impacted.
- Strategic implications: As a member of the Quad, India would face serious strategic consequences in the event of a cross-strait conflict. New Delhi would be expected to respond in support of its partners, particularly the United States, which may lead to a significant shift in the regional balance of power and India’s international commitments.
- Escalation along the Line of Actual Control (LAC): India’s involvement in a conflict over Taiwan may prompt China to escalate tensions along the LAC, leading to an increased risk of military confrontation between India and China. This would put additional pressure on India’s military and resources, as it would have to prepare for a potential two-front conflict.
- Diplomatic challenges: India’s involvement in a conflict over Taiwan would strain its diplomatic relations with China and complicate its foreign policy priorities in the region. New Delhi would have to balance its commitments to its allies and partners with the need to maintain a stable relationship with Beijing.
- Economic costs: The economic fallout from a cross-strait conflict could be considerable for India, with potential disruptions to supply chains, investment flows, and regional economic integration efforts. This could hinder India’s economic growth and development objectives in the short to medium term.
- Security concerns: A cross-strait conflict could lead to increased military deployments, escalations, and proxy conflicts in the region, raising security concerns for India. This would necessitate greater vigilance and preparedness from the Indian military and intelligence agencies to address potential threats.
- Humanitarian consequences: In the event of a large-scale conflict, India may face the challenge of responding to humanitarian crises resulting from displaced populations, refugees, and the disruption of essential services in the region. This could put additional strain on India’s resources and infrastructure.
- Military response: India could assist partner countries, including the US, by sharing experience and intelligence on dealing with the PLA. It could also offer its mainland for refuelling aircraft and access to its Andaman and Nicobar Island bases.
- Diplomatic response: India could participate in a United Nations General Assembly resolution condemning Chinese aggression.
- Economic response: India is unlikely to impose targeted sanctions on China due to the negative trade balance between the two countries.
India’s proactive measures
- Information sharing: India can establish a secure communication channel with Taiwan to exchange vital intelligence and real-time information on Chinese military movements and strategies. This would help Taiwan to better anticipate potential threats and improve its defensive capabilities.
- Training Taiwanese armed forces personnel: India can secretly collaborate with Taiwan to train its armed forces personnel in specific operations and tactics. This may include joint exercises and training programs in areas like counterinsurgency, mountain warfare, and special operations, which could enhance Taiwan’s military preparedness.
- Consultative mechanisms: India can set up consultative mechanisms with Taipei, Tokyo, and Washington to discuss and coordinate their strategic approaches towards deterring a Chinese attack on Taiwan. This collaboration can lead to the development of joint strategies, contingency plans, and a coordinated response in case of a conflict.
- Strengthening defense ties: India can explore options to strengthen defense ties with Taiwan by providing it with military equipment, technology, and logistical support. This could help Taiwan build a more robust defense system and deter potential Chinese aggression.
- Economic diversification for Taiwan: India can play a significant role in helping Taiwan diversify its trade and economic dependencies away from China. By increasing bilateral trade, investment, and technological cooperation, India can provide Taiwan with the scale it needs to reduce its overdependence on Beijing.
- Soft power diplomacy: India can leverage its soft power and cultural ties to build stronger relationships with Taiwan, promoting people-to-people exchanges, educational collaborations, and cultural events. This would not only strengthen the bond between the two countries but also raise awareness and support for Taiwan’s cause on the international stage.
- Encouraging international support: India can work with its allies and partners in the Quad, as well as other regional and global forums, to build a broader coalition supporting Taiwan’s sovereignty and security. By advocating for Taiwan’s inclusion in international organizations and platforms, India can help raise its global profile and encourage other countries to support Taiwan in the event of a conflict.
Conclusion
- While India would face challenges in the event of a cross-strait conflict, it is crucial for New Delhi to plan for the inevitable and proactively consider its military, diplomatic, and economic responses to such a crisis.
Mains Question
Q. There are signs of potential cross-strait conflict between China and Taiwan. In this backdrop discuss its impact on India
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Foreign Trade Policy
Mains level: Read the attached story
Union Minister of Commerce and Industry has launched the Foreign Trade Policy 2023.
Foreign Trade Policy, 2023
- The policy is dynamic and open-ended to accommodate the emerging needs of the time.
- It aims to promote India’s overall exports, which has already crossed US$ 750 Billion.
- The key approach to the policy is based on these 4 pillars:
- Incentive to Remission,
- Export promotion through collaboration – Exporters, States, Districts, Indian Missions,
- Ease of doing business, reduction in transaction cost and e-initiatives and
- Emerging Areas – E-Commerce Developing Districts as Export Hubs and streamlining SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) Policy
Overview of the FTP, 2023
- FTP to provide the policy continuity and a responsive framework
- Approach of FTP: From Incentive to Remission
- Introduces scheme for remission of duties, taxes and govt levies on export goods
- Digitisation of applications pertaining to FTP
- Automatic system-based approval of FTP applications
- Pilot introduced for cutting processing of applications related to advance authorisation to 1 day
- Norms for recognition as Star Trading Houses eased
- Promotes trade in Indian Rupee
- Introduces provisions for merchanting trade
- Dairy sector to be exempted from maintaining average export obligation * Battery electric vehicles; vertical farming equipment & green hydrogen eligible for reduced obligation under Export Promotion Capital Goods (EPCG) scheme
- Special advance authorization scheme extended for apparel & clothing sector
- Extends all FTP benefits to e-commerce exports
- Value limit for exports through courier service increased from Rs 5 lakh to Rs 10 lakh per consignment
- Focus on engaging with states & districts through Districts as Export Hubs initiative
- Aims at streamlining export of dual use items under SCOMET policy
- Introduces amnesty scheme for one-time settlement of default in export obligation by advance authorisation and EPCG authorisation holders
- FTP to be dynamic and responsive to the emerging trade scenario
- Restructuring of Department of Commerce on the anvil to make it future-ready
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Key highlights
(1) Process Re-Engineering and Automation
- The policy emphasizes export promotion and development, moving away from an incentive regime to a regime which is facilitating, based on technology interface and principles of collaboration.
- Reduction in fee structures and IT-based schemes will make it easier for MSMEs and others to access export benefits.
- Duty exemption schemes for export production will now be implemented through Regional Offices in a rule-based IT system environment, eliminating the need for manual interface.
(2) Towns of Export Excellence
- Four new towns have been designated as Towns of Export Excellence (TEE) in addition to the existing 39 towns.
- The TEEs will have priority access to export promotion funds under the Market Access Initiative (MAI) Scheme.
- It will be able to avail Common Service Provider (CSP) benefits for export fulfilment under the EPCG Scheme.
(3) Recognition of Exporters
- Exporter firms recognized with ‘status’ based on export performance will now be partners in capacity-building initiatives on a best-endeavour basis.
- 2-star and above status holders would be encouraged to provide trade-related training based on a model curriculum to interested individuals.
(4) Promoting Export from the Districts
- The FTP aims at building partnerships with State governments and taking forward the Districts as Export Hubs (DEH) initiative.
- This would promote exports at the district level and accelerate the development of grassroots trade ecosystem.
(5) Streamlining SCOMET Policy
- India is placing more emphasis on the “export control” regime.
- A robust export control system in India would provide access of dual-use High end goods and technologies to Indian exporters while facilitating exports of controlled items/technologies under SCOMET from India.
(6) Facilitating E-Commerce Exports
- Various estimates suggest e-commerce export potential in the range of $200 to $300 billion by 2030.
- FTP 2023 outlines the intent and roadmap for establishing e-commerce hubs and related elements such as payment reconciliation, book-keeping, returns policy, and export entitlements.
- As a starting point, the consignment wise cap on E-Commerce exports through courier has been raised from ₹5Lakh to ₹10 Lakh in the FTP 2023.
(7) Facilitation under Export Promotion of Capital Goods (EPCG) Scheme
The government has made several changes to the Foreign Trade Policy, including:
- Adding PM MITRA scheme for textile and apparel parks to EPCG’s Common Service Provider Scheme
- Exempting dairy sector from maintaining Average Export Obligation
- Adding green technologies such as BEVs, vertical farming equipment, and rainwater harvesting to EPCG’s reduced Export Obligation requirement.
(8) Facilitation under Advance authorization Scheme
- DTA (Domestic Tariff Area) units can access the Advance Authorization Scheme for duty-free import of raw materials for manufacturing export items, and it can be used for domestic and export production.
- The Special Advance Authorization Scheme has been extended to the Apparel and Clothing sector to facilitate prompt execution of export orders.
- The Self-Ratification Scheme for fixation of Input-Output Norms has been extended to 2-star and above status holders.
(9) Merchanting trade
- The FTP 2023 has introduced provisions for merchanting trade, which allows the shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary.
- This will be subject to compliance with RBI guidelines, and it won’t be applicable for goods/items classified in the CITES and SCOMET list.
- This is expected to allow Indian entrepreneurs to convert certain places into major merchanting hubs.
(10) Amnesty Scheme
- The government is introducing a special one-time Amnesty Scheme under the FTP 2023 to address default on Export Obligations and provide relief to exporters who have been unable to meet their obligations under EPCG and Advance Authorizations.
- All pending cases of default in meeting Export Obligation (EO) of authorizations can be regularized on payment of all customs duties that were exempted in proportion to unfulfilled Export Obligation.
- The interest payable is capped at 100% of these exempted duties under this scheme, and no interest is payable on the portion of Additional Customs Duty and Special Additional Customs Duty.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CPTPP
Mains level: Not Much
UK has agreed to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade pact based around the Pacific Rim, as it seeks to build ties around the world after leaving the European Union.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
- CPTPP is a free trade agreement (FTA) that was agreed in 2018 between 11 countries – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
- Britain will become the 12th member, and the first to join since the partnership since its inception.
- The agreement was originally proposed as the Trans-Pacific Partnership (TPP) in 2005, with the goal of creating a free trade area that would cover 12 countries, including the US.
- However, the US withdrew from the agreement in 2017, prompting the remaining 11 countries to renegotiate the deal and create the CPTPP.
Economic prospects
- CPTPP countries approximately has a combined GDP of 11 trillion pounds ($13.6 trillion) once Britain joins, or 15% of global GDP with UK membership.
- It does not have a single market for goods or services, and so regulatory harmonisation is not required, unlike the European Union, whose trading orbit Britain left at the end of 2020.
Key trade objectives of CPTPP
- The CPTPP is designed to reduce tariffs and promote economic integration among its members.
- It aims to eliminate tariffs on more than 95% of goods traded between member countries, and to provide greater market access for services and investment.
- The agreement also includes provisions on intellectual property, labor, and environmental standards.
How much does Britain trade with CPTPP?
- British exports to CPTPP countries were worth 60.5 billion pounds in the twelve months to end-Sept. 2022.
- Membership of the grouping will add another 1.8 billion pounds each year in the long run, and possibly more if other countries join.
Key benefits to be reaped by UK
- Exporters could benefit from CPTPP membership even when trading with countries where there is a bilateral FTA.
- To benefit from preferential tariffs, exporters must demonstrate a product as a sufficient proportion of “locally” sourced parts.
- Rules of origin under rolled-over post-Brexit free trade agreements with Japan, Mexico and Canada, for instance, allow exporters to count EU inputs as “local”.
- However, under CPTPP, inputs from CPTPP members can usually be considered local, giving exporters another option if it is beneficial.
Geopolitical considerations: China Factor
- While the long-term benefit for Britain’s economy is set to be modest, Britain has other reasons for joining the bloc.
- UK will get a veto on whether China joins the treaty. Beijing had applied to become a member of the bloc in September 2021.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: States reorganization in India
Mains level: Post-independence consolidation
Rajasthan Day is celebrated on March 30, marking the day the state was created by unifying 22 princely states and chiefships. Rajasthan’s story of foundation is intriguing.
Formation of Rajasthan
- At the time of Independence, Rajasthan was almost wholly contained in the Rajputana Agency, a political office of the British Indian Empire.
- The Rajputana Agency consisted of 22 princely states and estates.
- Less than 22 months after Independence, all 22 had assimilated to form what would become India’s largest state.
- However, modifications were made to the boundaries after the State Reorganisation Act (1956), giving Rajasthan its present shape.
Challenges of Princely States
(1) Rajputana Agency
- The Rajputana Agency spanned roughly 330,330 sq. km, with an agent under the Governor-General in charge, residing at Mount Abu.
- All the princely states and estates in the agency (22 in total) were ruled by Hindu rulers with the exception of Tonk (which had a Muslim ruler).
(2) The Matsya Union
- The States Ministry believed that four princely states – Alwar, Bharatpur, Dholpur, and Karauli – at the eastern edge of the erstwhile Rajputana Agency had “natural, racial and economic affinities” with each other.
- Thus, the Matsya Union was inaugurated on March 18, 1948.
(3) Rajasthan Union in South-East Rajputana
- Ten princely states, with Udaipur (also known as Mewar) being the largest, wanted to form a union.
- An idea to merge these into Madhya Bharat was also floated but did not go through.
- Another idea to merge these states into the much larger Udaipur was proposed by the Maharana of Udaipur, Bhupal Singh Bahadur.
- However, this was not agreeable to the other princely states. Hence, on March 25, 1948, the nine other states came together to form the Rajasthan Union.
- Within three days after its formation, Udaipur decided to join this union.
(4) Greater Rajasthan
- The four largest princely states – Jaipur, Jodhpur, Bikaner, and Jaisalmer – still remained independent.
- The alternative, backed by Patel, was to merge all four states into the newly formed Rajasthan Union.
- Greater Rajasthan was officially inaugurated by Patel on March 30, 1949 – the date still celebrated as Rajasthan Day.
Modifications by the State Reorganisation Commission
- The State Reorganisation Commission (SRC) was formed in 1953 to recommend new state boundaries to the government, in response to demands for states based on linguistic lines.
- The SRC’s recommendations, with some modifications, were implemented in the State Reorganisation Act of November 1, 1956.
- For Rajasthan, this brought some minor changes, including the integration of Ajmer as a district within Rajasthan, given its linguistic, cultural, and geographical links to the state.
- Abu Road Taluk, a taluk of the Sirohi district of southern Rajasthan, was also integrated into Rajasthan after being sliced and included in the Bombay State.
- The enclave of Sunel in Rajasthan’s southeastern edge was received from Madhya Pradesh in exchange for the enclave of Sironj, due to administrative reasons.
Conclusion
- Overall, the state of Rajasthan was created through a complex process of merger and integration of various princely states and chiefships.
- Today, Rajasthan is the largest state in India in terms of land area, covering 342,239 square kilometers, and is known for its rich cultural heritage, majestic forts and palaces, vibrant festivals, and diverse cuisine that attract visitors from all over the world.
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