Note4Students
From UPSC perspective, the following things are important :
Prelims level: Dagestan
Mains level: NA
Central Idea
- A recent incident involving anti-Israel protesters storming an airport in Makhachkala, Dagestan, has drawn international attention.
- This incident highlights the unique position of Dagestan, which, while sounding like a country, is actually a province within Russia.
About Dagestan
- Dagestan, officially known as the Republic of Dagestan, is a province within the Russian Federation, dispelling any confusion arising from its name.
- Situated in the southernmost part of Russia, it holds strategic importance for the country.
Geographical Location
- Land of Mountains: Dagestan’s name translates to “land of the mountains,” emphasizing its mountainous terrain.
- North Caucasus: Located in the eastern part of the North Caucasus, it shares borders with Georgia and Chechnya to the west and Azerbaijan to the south. To the east lies the Caspian Sea.
- Inaccessible Terrain: Some areas within Dagestan’s mountains are so remote that reaching them requires helicopters.
Ethnic Diversity
- Over 40 Ethnicities: The province is home to at least 40 different ethnic groups.
- 30+ Languages: More than 30 languages are spoken in this region.
- Prominent Ethnic Groups: The largest ethnic group in Dagestan is the Avars, comprising approximately one-fifth of the population. Other significant groups include Dargins, Kumyks, and Lezgins.
- Ethnic Russian Presence: Despite the ethnic diversity, around 10% of Dagestan’s population is ethnically Russian.
Capital: Makhachkala
- Strategic Coastal City: Makhachkala, the capital of Dagestan, is situated along the Caspian Sea coast.
- Historical Significance: Once a major trading port, Makhachkala was conquered by the Russian Imperial Army in the 19th century.
- Oil and Gas Hub: Today, Dagestan serves as a crucial conduit for oil and gas pipelines connecting the Caspian Sea to Russia’s heartland, possessing its own reserves of these resources.
- Challenges: The region has grappled with organized crime and instability, with Russian security forces combating armed insurgencies and militant groups in Dagestan and neighboring areas.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mozambique LNG Project
Mains level: NA
Central Idea
- Union Minister for Petroleum and Natural Gas recently undertook a significant diplomatic mission to review the $20 billion liquefied natural gas (LNG) project in Mozambique.
- This project, situated in the northern Cabo Delgado province, holds immense strategic importance for India’s quest for energy self-sufficiency.
Mozambique LNG Project
- Discovery in 2010: The project originated in 2010 with the discovery of substantial natural gas reserves off the northern Mozambique coast.
- Resource Abundance: The Area 1 block holds around 75 trillion cubic feet (Tcf) of recoverable gas, promising a resource life of about 120 years with an initial production rate of 12.88 million tonnes of LNG per year.
- Indian Involvement: Three Indian public sector undertakings (PSUs) hold a 30% stake in the Mozambique LNG project.
- Strategic Location: Mozambique’s geographical proximity to India’s west coast, with numerous LNG terminals, enhances its significance as a preferred source for LNG supply.
- Meeting Indian Demand: India aims to increase the share of natural gas in its energy mix, with LNG imports playing a crucial role. India currently imports approximately 50% of its natural gas needs.
Challenges and Recent Developments
- Operational Halt: TotalEnergies suspended project operations due to security concerns in April 2021.
- Humanitarian Assessment: A humanitarian mission was conducted by Jean-Christophe Rufin in December 2022, recommending actions to address local issues.
- Indian Diplomatic Efforts: India has actively sought to engage project partners and restart the project since May 2023.
- Geopolitical Significance: India’s reliance on Qatar as a major LNG supplier faces challenges, making the Mozambique LNG project strategically important.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Moon's Age
Mains level: NA
Central Idea
- For years, the moon’s age was believed to be around 4.42 billion years, but recent research challenges this notion.
- A study has used advanced technology called atom probe tomography (APT) to evaluate lunar sample 72255, which contained 4.2 billion-year-old zircon crystals.
Unveiling the Moon’s True Age
- Zircon’s Significance: Zircon is not only the oldest mineral on Earth but also holds crucial information about the formation of our planet.
- Lead Clustering Analysis: Using nanoscale spatial resolution, the scientists analyzed the clustering of lead within the samples, a common method to estimate the age of zircon in rocks.
- Revised Age: The study concludes that the moon likely formed approximately 4.46 billion years ago, within the first 110 million years of the solar system’s existence.
- Comparing Earth’s Age: Earth is estimated to be between 4.5 and 4.6 billion years old, making the moon slightly younger at approximately 4.46 billion years old.
Implications of Zircon and Lunar Formation
- Giant Impact Hypothesis: The researchers propose the giant impact hypothesis, suggesting that a celestial body named Theia, possibly Mars-sized, collided with Earth during its formation. This collision ejected debris, which coalesced to form the moon.
- Lunar Magma Ocean: This collision led to the formation of the Lunar Magma Ocean, influencing the moon’s interior composition.
- Preserved Zircon: Subsequent lunar surface bombardments reworked the earliest crust, leaving some zircon crystals modified and others preserved. Identifying these preserved zircon crystals provided insights into the moon’s age.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nanostructured Hard-Carbon Florets (NCF)
Mains level: Not Much
Central Idea
- Scientists at IIT Bombay have achieved a groundbreaking development by creating a material known as Nanostructured Hard-Carbon Florets (NCF).
- This innovative material boasts an unparalleled solar-thermal conversion efficiency, surpassing 87%.
What is Nanostructured Hard-Carbon Florets (NCF)?
- NCF Development: It is a material capable of absorbing and storing an exceptional amount of heat energy.
- Stunning Efficiency: It exhibits an extraordinary solar-thermal conversion efficiency of over 87%, absorbing more than 97% of sunlight’s ultraviolet, visible, and infrared components.
- NCF Manufacturing: The material is manufactured through chemical vapor deposition, making it easily scalable and suitable for large-scale production.
Science behind NCF’s Efficiency
- NCF’s success lies in its unique structure, resembling interconnected carbon cones.
- This structure combines high photon thermalization (efficiently converting light into heat) with low phonon thermal conductivity (retaining heat without loss).
Applications of NCF
- Wide Range: NCF can be applied to diverse surfaces, including paper, elastomer, metal, and terracotta clay, making it adaptable for various contexts.
- Versatility: The generated heat can be efficiently transferred to air or water, making NCF ideal for smoke-free space heating, particularly beneficial in cold regions like Leh and Ladakh.
- Eco-Friendly and Cost-Effective: Unlike conventional coatings based on heavy metals like chromium (Cr) or nickel (Ni), NCF coatings do not harm the environment
Beyond Solar Thermal Conversion
- Heating Rooms and Spaces: Hollow copper tubes coated with NCF can heat air to over 72 degrees Celsius, demonstrating potential applications in space heating.
- Efficient Water Vapor Conversion: NCFs have achieved an astonishing water vapor conversion efficiency of 186%, surpassing commercial solar stills.
- Sustainable Energy Solution: This groundbreaking technology provides a green solution to the global energy crisis, supporting the transition to sustainable energy sources.
- Commercialization and Recognition: The project is on the path to commercialization through the establishment of a company at IIT Bombay’s Society for Innovation and Entrepreneurship. It has received accolades and support, highlighting its potential to revolutionize the solar-thermal energy market in India and contribute to decarbonization.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Prisoner's Dilemma
Mains level: Read the attached story
Central Idea
- Defence Minister invoked the concept of the “Prisoner’s Dilemma” to emphasize the importance of international collaboration over competing interests.
- He highlighted the need for countries to find solutions that promote cooperation, trust-building, and risk mitigation in international relations.
What is the Prisoner’s Dilemma?
- Game Theory Basis: The Prisoner’s Dilemma is a renowned concept in Game Theory, a scientific branch that studies decision-making in various scenarios.
- Complex Decision-Making: It illustrates that real-life decisions involve complexity and uncertainty, and outcomes depend on the actions of others.
- Paradox of Conflict: When applied to international relations, it reveals situations where countries engage in actions, such as arms races, driven by mutual fear and mistrust.
Prisoner’s Dilemma Scenario
- Crime Investigation: Imagine two individuals, A and B, facing questioning for a crime without strong evidence.
- Police Offer: The police offer them a choice:
- If one implicates the other, the informant goes free, while the implicated receives a 15-year jail term.
- If both stay silent, both serve one year in prison.
- If both confess, they each get 10 years.
Prisoner’s Dilemma Matrix:
|
A Stays Silent |
A Confesses |
| B Stays Silent |
A: 1 year, B: 1 year |
A: 15 years, B: 0 years |
| B Confesses |
A: 0 years, B: 15 years |
A: 10 years, B: 10 years |
Dilemma and Decision
- Optimal Outcome: On the surface, staying silent seems best, resulting in both serving just one year in prison.
- Uncertainty: However, if one stays silent, they risk a 15-year sentence if the other implicates them.
- Paradox: To avoid the maximum penalty, confessing becomes the rational choice if trust in the other’s silence is uncertain.
- Cooperation Ideal: The best outcome lies in cooperation, where both prisoners stay silent, serving only one year.
Real-Life Applications
- Business Strategy: Similar dilemmas occur in business, such as price wars between companies selling identical products. Cooperation to maintain sustainable pricing can lead to healthier profits.
- Geopolitical Agreements: Countries can avoid ruinous arms races and protect their economies by establishing ground rules in geopolitics, fostering cooperation over competition.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Gatishakti, NMP, NLP
Mains level: Railway cargo
Central Idea
- Rail transport has long been a cost-effective means of moving bulk cargo.
Promoting Railway Cargo: Key Policy Initiatives
- Recognizing its importance in reducing overall logistics costs and promoting sustainable transportation, the Government of India has introduced two key policies:
- PM GatiShakti (PMGS) policy for a National Master Plan (NMP): PMGS focuses on creating a seamless multi-modal transport network in India, leveraging technology for coordinated infrastructure planning.
- National Logistics Policy (NLP), 2022: NLP aims to establish a national logistics portal and integrate platforms across various ministries to streamline cargo movement.
- These policies aim to revolutionize the Indian transportation landscape by fostering infrastructure development, technology integration, and green mobility initiatives.
Barriers to IR’s Bulk Cargo Share
- Non-Price Barriers: IR faces challenges in maintaining its share of bulk cargo, partially due to non-price barriers. To counter this, IR should reduce these barriers and distribute transaction costs more equitably.
- Capital-Intensive Siding: Railway sidings are capital-intensive and favor large industries, leading to higher logistics costs for smaller entities, such as many cement plants.
Initiatives in Bulk Cargo Transportation
- Private Freight Terminals (PFTs): The introduction of PFTs and relaxation of operating conditions have facilitated specialized cargo movement, including automobiles and fly ash.
- Common-User Facilities: To reduce logistics costs and encourage patronage of IR, common-user facilities at cargo aggregation and dispersal points in mining clusters, industrial areas, and large cities are essential.
- Collaboration with States: Collaboration with State governments is crucial, as they possess knowledge of regional clusters and can play a pivotal role in planning industrial and mining activities.
Exploring New Commodities and Efficiency Measures
- Fly Ash Transportation: The IR should actively explore the potential of transporting fly ash, aligning with the Ministry of Environment and Forests’ guidelines. This entails retrofitting power plant sidings with fly ash loading facilities.
- Innovative Wagon Design: The IR should liberalize wagon design to accommodate higher and more efficient loading for various commodities, promoting versatility.
- Environmental Considerations: Environmental regulations should be mode-agnostic and based on cargo quantity and environmental impact potential. This will prevent cargo from shifting to road transport due to cumbersome rail loading requirements.
Revamping Parcel Transportation
- Challenges: The IR’s existing strategy for moving general cargo relies on passenger trains or special heavy parcel van (VPH) trains, but both have experienced setbacks, with a 15% drop in loading leased parcel vans and an 8% decline in full parcel trains.
- High Tariffs: One contributing factor to the decline is the high tariff, with premium and Rajdhani rates surpassing truck rates when factoring in first and last-mile costs. Exceptions exist for cargo destined to the northeast.
- Other Challenges: The issues also include inadequate terminals, inconsistent weighbridges, excessive penal charges, unreliable transit times, complex booking and delivery processes, and self-imposed environmental constraints.
- VPH Parcel Trains: These have proven ineffective and should be discontinued. A covered wagon, specifically a Covered Bogie Wagon Type with Air Brake and Heavy Load (BCNHL), can carry 700% more cargo with 45% more volume. Even if P scale rates are halved, revenue generated would be 3.5 times that of VPH trains.
Containerization Conundrum:
- Expectations vs. Reality: IR hoped that private container train operators (CTOs) would boost general cargo movement through containerization. However, 15 years post-privatization, domestic cargo carried by containers constitutes a mere 1% of IR’s loading and 0.3% of the nation’s total freight, primarily due to high haulage rates and market risks.
- Shipment Size Challenge: General cargo typically involves shipment sizes ranging from a few to hundreds of tonnes. The IR’s current services do not cater to the needs of this diverse segment, creating a gap in service provision.
Future Strategies
- Segmentation: General cargo can be categorized as highly time-sensitive (HTSG), medium time-sensitive (MTSG), and low time-sensitive (LTSG).
- HTSG Cargo: Valuable goods or perishables should continue to be transported by passenger trains. Attaching parcel vans to popular trains can substantially increase parcel loading capacity and revenue.
- MTSG and LTSG Cargo: These price-sensitive categories should be transported under IR freight rates, which are cost-effective compared to truck rates. Individual wagon bookings should be permitted, even if a train isn’t fully loaded, ensuring timely movement.
- Policy and Mindset Change: IR should adopt a flexible approach to freight tariff rules, including freight of any kind (FAK) for wagon loads in the tariff table. Single-wagon indents should be encouraged.
- Incentives and Aggregators: Tariffs may be adjusted based on quantity loaded to promote volumetric loading. Cargo aggregators should be incentivized through policy adjustments.
- Future Prospects: With concerted efforts, the IR can load substantial general cargo tonnage in the coming years, capitalizing on the existing infrastructure and industry capabilities.
Conclusion
- The Indian Railways stands at a critical juncture in transforming cargo transportation for a more sustainable and efficient future.
- With the support of visionary policies, collaborative efforts, and a proactive approach to diversification and environmental challenges, IR can reassert its position as a key player in India’s logistics landscape.
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Central idea
Severe health consequences of air pollution cannot be mitigated by personal protection measures alone. Clean, public transport and rapid transition away from fossil fuels are needed.
Key Highlights:
- Air pollution in India, particularly in cities like Delhi, is significantly reducing life expectancy.
- A recent report estimates an average loss of 5.3 years of life expectancy in India due to air pollution.
- Delhi, one of the most polluted cities globally, faces an even worse scenario with an estimated life loss of 11.9 years.
Challenges:
- 39 out of 50 of the world’s most polluted cities are in India, impacting both urban and rural areas.
- Pollutants monitored include PM 10, PM 2.5, nitrogen dioxide, sulfur dioxide, carbon monoxide, ozone, ammonia, lead, benzene, formaldehyde, and cadmium.
- India’s air quality standards are less stringent than WHO standards, with concerns about health risks even at lower pollution levels.
Concerns:
- Prolonged exposure to air pollution, even at satisfactory Air Quality Index (AQI) levels, can have adverse health effects.
- Geographical factors, like the landlocked Indo-Gangetic plain, exacerbate pollution levels, especially during winters.
- Both outdoor and indoor sources contribute to air pollution, impacting various regions differently.
Analysis:
- Health harms range from acute effects like respiratory issues to severe conditions such as heart attacks and strokes.
- Long-term exposure to air pollution is linked to hypertension, cardiovascular diseases, cancers, diabetes, dementia, cataracts, and more.
- Pregnant women and children are particularly vulnerable, facing risks of stillbirths, neonatal deaths, low birth weight, and developmental issues.
Key Data:
- The WHO’s PM 2.5 limit is 5 microns, while India allows 40 microns.
- Delhi’s current AQI of 126 exceeds national and WHO standards.
- 22 states meet national AQI standards, but none meet WHO standards.
Key Terms:
- Particulate matter (PM 2.5) and ultra-fine particles.
- AQI categories: Good, satisfactory, moderately polluted, poor, very poor, and severe.
- Emission sources: line, point, area, and natural sources.
- Personal protection measures, including air purifiers, masks, and breathing exercises.
Way Forward:
- Urgent measures needed for clean transport, increased public transport usage, renewable energy adoption, and waste disposal improvements.
- Addressing household air pollution through alternative fuel use and better ventilation.
- Proactive public policy, enforcement, monitoring, and innovations required to combat air pollution and its health impacts.
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Central idea
The article discusses the surge in household debt in India, emphasizing the need to assess its sustainability through the Debt Service Ratio (DSR). Despite the high DSR, comparisons with global trends reveal both challenges and potential adjustments. The analysis suggests extending the maturity period as a key strategy and calls for collaborative efforts between regulators and lenders to manage the impact of rapid debt growth.
Key Highlights:
- Surge in Household Debt: Household debt in India reached 5.8% of GDP in FY23, the second-highest annual increase since Independence.
- Debt Service Ratio (DSR): The sustainability of debt is questioned by examining the Debt Service Ratio (DSR), measuring the proportion of income used to repay debt-related obligations.
- Indian Household DSR: India’s household DSR was approximately 12% in FY23, consistently increasing over the past two decades and higher than most advanced economies.
- Comparison with Advanced Economies: India’s DSR is higher than that of advanced economies like China, France, the UK, and the US, indicating higher household leverage.
- Long-Term Trends: Despite the high DSR, Indian households have experienced improved borrowing terms over the past decade, with longer maturity periods and falling interest rates.
Challenges:
- Rapid Debt Growth: The rapid growth in household debt, especially non-housing loans, raises concerns about sustainability and potential future challenges.
- Threshold Level: The article raises questions about the threshold level of household debt in India and the time frame before reaching a critical point.
| Prelims focus
The Debt Service Ratio (DSR) is like a measure of how much of your money goes into repaying debts. It looks at the portion of your income used to pay off things like loans and interest. A lower DSR is better because it means you have more money left for other things after handling your debts. So, it’s a way to see if people can comfortably manage their debt payments based on their income. |
Analysis:
- Effective Interest Rates: The combination of higher interest rates and shorter debt tenure contributes to India’s higher DSR compared to advanced economies.
- Global Comparison: India’s household DSR is compared with Nordic countries and other nations, indicating both challenges and potential room for adjustment.
Key Data:
- Household Debt-to-Income Ratio: Jumped to 48.1% in FY23 from 42.2% in FY19, suggesting a significant increase in a short period.
- DSR Trends: India’s DSR has consistently increased over the past three years, reflecting a rising burden on households.
Key Terms:
- Debt Service Ratio (DSR): Measures the proportion of income used to repay debt-related obligations.
- Residual Maturity: The remaining time until a debt obligation is due to be paid.
- Household Leverage: The ratio of household debt to income, indicating the financial burden on households.
Way Forward:
- Increase Residual Maturity: Extending the maturity period for borrowers is suggested as an effective way to reduce the debt burden on Indian households.
- Collaboration between Regulators and Lenders: Urges regulators and lenders to collaborate to distribute the impact of debt growth over time, avoiding sudden hindrances to economic growth.
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Central idea
Narayana Murthy’s advice to work 70 hours a week sparks debate on the balance between productivity and workforce well-being. The article explores the challenges, gender disparities, and global work hour comparisons, emphasizing the need for adaptable work strategies in a post-COVID era to achieve sustainable growth without compromising individual lives.
Key Highlights:
- Narayana Murthy’s Advice: Murthy advises young IT professionals to work 70 hours a week to address India’s low productivity concerns and meet global changes.
- Productivity Concerns: Murthy emphasizes the need for a cultural shift toward determination, discipline, and hard work, especially among the youth.
- Global Work Hours Comparison: Data from the International Labour Organisation shows South and East Asia having the highest average weekly work hours, contrasting with North America and Europe.
- Work-Life Balance Challenges: Murthy’s approach raises concerns about the impact on stress, income, and work-life balance, particularly for women in the workforce.
Challenges and Concerns:
- High Working Hours: South and East Asia, including India, have high average weekly work hours, impacting the well-being of the workforce.
- Gender Disparities: A 24/7 work culture may disproportionately affect women, with unrealistic professional standards and limited concessions for family responsibilities.
- Workplace Expectations: Murthy’s emphasis on extended working hours may contribute to a culture valuing presence over contribution, potentially affecting mental health and family life.
Analysis:
- Nation Building vs. Workforce Well-being: The tension between nation-building efforts and the well-being of the workforce is highlighted, raising questions about sustainable growth.
- Workplace Changes Post-COVID: The article suggests that the COVID-19 pandemic has reshaped the workplace, emphasizing the need for practical expectations and support mechanisms.
Key Data:
- Average Work Hours: South and East Asia have the highest average weekly work hours, with South Asia at 49 hours and East Asia at 48.8 hours.
- Global Comparison: North America records 37.9 average weekly work hours, while Europe ranges from 37.2 to 37.9 hours.
Key Terms:
- Flexi-time: Flexible working hours allowing employees to choose their work hours within certain limits.
- FOMO (Fear of Missing Out): The culture where an individual fears missing out on opportunities or experiences, often applied in the context of work.
- Work-Life Balance: The equilibrium between professional and personal life to ensure overall well-being.
- Remote Work: Work performed outside the traditional office setting, often enabled by technology.
- Job Flexibility: Adaptable work arrangements, including flexi-time and remote work, to accommodate employees’ needs.
Concerns for Future Work Strategies:
- One-way Work Culture: The traditional approach of work as a one-way street, potentially overlooking the changing dynamics of the modern workplace.
- Impact on Lives: The need for work strategies that consider individual lives, relationships, and personal aspirations alongside professional goals.
Way Forward:
- Adaptable Work Policies: Organizations should embrace adaptable work policies, including flexi-time and remote work, to accommodate diverse needs and promote work-life balance.
- Equal Opportunities: Ensure equal opportunities and concessions for both genders, challenging traditional norms that disproportionately affect women in the workforce.
- Rethinking Productivity: Shift the focus from sheer working hours to productivity and contribution, fostering a culture that values efficiency over extended presence.
- Support Mechanisms: Establish robust support mechanisms, acknowledging the changing dynamics post-COVID, to nurture employee well-being and mental health.
- Continuous Dialogue: Encourage ongoing dialogue between employers and employees to understand evolving needs and collectively shape a work environment that aligns with the aspirations of the workforce.
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Central idea
The article explores the unexpected move by the RBI to consider open market operations (OMOs) for liquidity management, questioning its consistency with inflation concerns. It delves into factors like rapid credit growth and currency stability, suggesting a broader motivation behind the tightening measures.
What’s Open Market Operations (OMOs) and Why Does It Matter?
- OMOs Explained: OMOs are like a trick the RBI uses to manage how much money is floating around. They might buy or sell government bonds to control the amount of cash in the system.
- Why It Matters: It matters because the RBI wants to make sure there’s not too much money in the market, which can lead to other problems like inflation.
Is It Making Sense? Questioning the Money Moves
- Inflation Confusion: When the RBI talks about doing OMOs but inflation is not skyrocketing, it might make us scratch our heads. We wonder, why mess with the money flow if inflation is not going crazy?
- Asking Questions: It’s like asking your friend why they are using an umbrella on a sunny day. We want to understand if OMOs make sense when things seem okay.
Key Highlights:
- October MPC Meeting: Unanimous decision to maintain unchanged interest rates, meeting expectations.
- OMOs Announcement: RBI Governor hints at open market operations (OMOs) for liquidity management, causing a 12 basis points surge in the 10-year government bond yield.
- Inflation Trends: Retail inflation surged in July and August due to soaring vegetable prices. Despite a sharp fall to 5% in September, inflation remains above the central bank’s upper threshold.
- Inflation Projections: RBI maintains its inflation projections at 5.4% for 2023-24 and 5.2% for Q1 2024-25, indicating confidence in the trajectory.
- Core Inflation Eases: Core inflation (excluding food and fuel components) has eased from its peak, dropping to 4.7% in September.
- Credit Growth Surprise: Sharp rise in retail and personal loans, raising concerns about the pace and quality of credit growth.
- UBS Study: Reveals a significant increase in borrowers with multiple personal loans, with 7.7% having more than five loans by March 2023.
- RBI’s Response to Credit Growth: Concerns prompt discussions about squeezing liquidity and de facto tightening through interest rate adjustments.
- OMOs as Currency Defense: OMOs considered a tool to increase the spread between Indian and US bond yields, easing pressure on the Rupee.
Challenges and Concerns:
- Inflation: Persistent inflation above the central bank’s upper threshold raises concerns about economic stability.
- Credit Growth: Rapid rise in retail and personal loans prompts concerns about the quality of borrowers and potential stress in this segment.
- Currency Pressure: Global economic dynamics, including the strengthening USD, pose challenges to the stability of the Rupee.
- Foreign Currency Reserves: Decline in foreign currency assets raises questions about the sustainability of currency defense.
- Liquidity Tightening: OMOs and potential de facto tightening measures may impact liquidity conditions, affecting both consumer and industrial credit.
Analysis of the article:
- RBI’s Strategy: The use of OMOs raises questions about the alignment with the traditional stance of monetary policy, indicating potential broader motivations.
- Credit Growth Impact: Concerns over the sharp rise in credit prompt discussions about strategies to slow down its growth, including liquidity tightening.
- Currency Defense: The RBI’s intervention in currency markets and the consideration of OMOs reflect efforts to stabilize the Rupee amidst global economic shifts.
Key Data:
- Inflation Figures: Retail inflation spiked in July and August, falling to 5% in September.
- Inflation Projections: RBI maintains projections at 5.4% for 2023-24 and 5.2% for Q1 2024-25.
- Core Inflation: Eased to 4.7% in September.
- UBS Study Findings: Share of borrowers with more than five personal loans rose to 7.7% by March 2023.
- Foreign Currency Asset Decline: RBI’s foreign currency assets fell by around $25 billion since July.
Economic Key Terms:
- Open Market Operations (OMOs): Financial maneuvers involving buying and selling assets to manage liquidity.
- Inflation Targeting Framework: Central bank’s approach to maintaining a specific inflation rate.
- Core Inflation: Inflation measure excluding volatile components like food and fuel.
- Credit Growth: The rate at which the total outstanding loans in the economy increase.
- Currency Intervention: Central bank’s actions to influence the value of its currency in the foreign exchange market.
- Foreign Currency Reserves: Holdings of other countries’ currencies by a central bank.
- Liquidity Tightening: Measures to reduce the availability of money in the financial system.
- Interest Rate Projections: Central bank’s forecasts for future interest rates based on economic conditions.
The RBI’s unconventional use of open market operations suggests a strategic response to challenges in inflation, credit growth, and currency stability. Balancing tightening measures with sustaining economic momentum poses a nuanced dilemma. The evolving global dynamics cast uncertainty on the longevity of these financial strategies.
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Central idea
The Chief Justice of India expresses concern over the Maharashtra Assembly Speaker’s inaction on pending disqualification petitions since July 2022, emphasizing the importance of upholding the court’s orders. The article highlights the historical evolution of the Speaker’s role, citing instances of misuse, partisanship, and delays in addressing disqualification petitions, posing a threat to the stability of elected governments.
Key Themes:
- The Supreme Court consistently emphasizes the need for an unbiased mechanism, possibly an independent tribunal, to handle disqualification cases.
- Concerns about the Speaker’s delay in addressing disqualification petitions and potential challenges in the certification of Bills as Money Bills.
Data Highlights from the Article:
- Parliamentary Standing Committees Referral: During 2004-14, over 60% of Bills in the Lok Sabha were referred to committees for detailed scrutiny. However, from 2014-2023, this referral rate dropped to less than 25%.
- Suspension Instances: Adhir Ranjan Chowdhury (Congress) swiftly suspended for remarks against the PM, later revoked. Ramesh Bidhuri (BJP) faced no swift action for passing communal slurs against an MP.
- Challenges in Maharashtra Assembly: Unconstitutional suspension of 12 BJP MLAs for a year in July 2021, set aside by the Supreme Court.
- Defection Decision Delays: Inaction by the Maharashtra Assembly Speaker on disqualification petitions pending since July 2022. Supreme Court recommends an independent tribunal for timely decisions on defection cases.
- Certification of Bills Challenges: Ongoing challenges in the Court regarding the certification of certain Bills as Money Bills by the Lok Sabha Speaker.
- International Speaker Practices: In Britain, the Speaker resigns from their political party upon election and seeks re-election as an impartial Speaker. This practice is not followed in India.
Speaker’s Functions and Gaps:
- Dual functions of certifying Bills as Money Bills and deciding on disqualification under the Tenth Schedule.
- Misuse of suspension provisions against Opposition members, highlighting instances of bias.
- Failure to refer significant Bills to Parliamentary Standing Committees affecting parliamentary functioning.
- Custodianship of the rights and privileges of the House, its committees, and members.
Challenges in Deciding Disqualification:
- Misuse of powers against Opposition members, unequal treatment for remarks against leaders.
- Delayed or inadequate actions on disqualification petitions, undermining stability in governance
- Past instances show Speakers favoring ruling dispensation, raising concerns over neutrality.
- Proposal for an independent tribunal, recommended by the Supreme Court, to handle disqualification cases.
- Maharashtra Assembly Speaker’s inaction on pending disqualification petitions despite court directions.
Key Supreme Court Judgments Simplified
Kihoto Hollohan (1992):
- Minority judges believed that giving the Speaker power to decide defections violated democratic principles.
- The case suggests the need for an independent tribunal, headed by judges, to handle defection cases.
Keisham Meghachandra Singh vs The Hon’ble Speaker Manipur (2020):
- The Supreme Court recommended a constitutional amendment for an independent tribunal to decide defections.
- The ongoing inaction of the Maharashtra Assembly Speaker on disqualification petitions was highlighted.
Once a Speaker, Always a Speaker:
- Comparison with Britain’s practice where the Speaker resigns from the political party for impartiality.
- Indian Speakers rarely exercise the option to resign from their political party, impacting perceived impartiality.
Way Forward and Reforms:
- Adoption of British practices to instill confidence, emphasizing Speaker’s impartiality.
- Urgent need for Speakers to demonstrate impartiality, even if formal reforms are pending.
- Consideration of reforms such as an independent tribunal for handling disqualification cases.
- Urgent measures needed to address challenges and restore faith in the institution of the Speaker.
- Speakers must commit to displaying impartiality, aligning their functions with democratic principles.
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Central idea
The article scrutinizes government policies aimed at curbing food inflation, focusing on the restrictive measures on basmati rice exports and their repercussions on farmers. It delves into the broader challenges hindering the achievement of ambitious agri-export targets, emphasizing the need for a balanced approach that considers both consumer welfare and farmer well-being.
Export Restrictions on Basmati Rice:
- Minimum Export Price (MEP): Imposition of a high MEP ($1,200/tonne) limiting basmati rice exports.
- Impact on Farmers: Low buying interest, reduced prices in Punjab-Haryana mandis, affecting farmers negatively.
- Global Market Dynamics: Risk of losing export markets to Pakistan, the main competitor in basmati rice.
- Beyond Basmati Rice: Similar restrictions on broken rice, non-basmati white rice, and parboiled rice.
- Need for Stability: Call for a stable export policy over knee-jerk reactions to support India’s position as the largest global rice exporter.
| Prelims booster points
· Parboiled rice is a type of rice that has been partially boiled in the husk.
· The process involves soaking, steaming, and drying the rice before milling it.
· Unlike regular white rice, parboiled rice retains more nutrients, as the process allows nutrients to move from the husk to the endosperm.
· Parboiled rice has a firmer texture and is less sticky than white rice, making it a popular choice in certain dishes.
· The parboiling process also gives the rice a golden or amber color. |
Challenges in Achieving Agri-Export Targets:
- Policy Impact: Restrictions on wheat exports, 40% export duty on onions, hindering the goal of doubling agri-exports.
- Historical Performance: Comparison of UPA’s $43.27 billion agri-exports in 2013-14 with the current estimate of less than $50 billion in 2023-24.
Consumer Bias vs. Farmer Welfare:
- Implicit Tax on Farmers: Critique of policies favoring domestic consumers, indirectly taxing farmers.
- Urban Consumer Bias: Need for differentiated policies catering to the vulnerable sections rather than blanket measures.
Agricultural Competitiveness and Investment:
- Competitiveness Importance: Agriculture exports as a measure of competitiveness and surplus generation.
- Investment Gap: Low investment in agriculture R&D (0.5% of agri-GDP) as a hindrance to competitiveness.
- Populism Challenge: Balancing subsidies, loan waivers, and “revdis” with the need for substantial investments.
Environmental and Economic Sustainability:
- Impact on Soil Health: Excessive focus on subsidies and populist measures could lead to imbalanced fertilizer usage and soil degradation.
- Long-Term Economic Health: The article hints at the economic burden of subsidies, emphasizing the need for a sustainable economic model.
Global Image and Diplomacy:
- Export Market Dynamics: Consideration of global perceptions and diplomatic relations impacted by abrupt export policy changes.
- Positioning Against Competitors: The unintended consequence of favoring policies potentially benefiting competitors like Pakistan in the global market.
Way Forward:
- Policy Revision: Consideration to revise export restrictions for better market access.
- Investment Boost: Doubling or tripling investments in agriculture R&D for enhanced competitiveness.
- Balanced Policies: Striking a balance between populism and sector health for sustainable growth.
- Reflecting Power: A nation’s strength lies in innovation, production, and competitive exports.
- Call for Change: Urgent need to revisit policies for better-designed, outcome-driven agricultural strategies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kathaprasangam
Mains level: NA
Central Idea
- Kathaprasangam began as a medium to narrate stories of oppression, untouchability, and human resilience.
- Today, it finds a place of relevance and renewal in the digital age, captivating audiences, both young and old.
Kathaprasangam
- Kathaprasangam is a stage art form of Kerala, which was popular in the mid-twentieth century.
- Kathaprasangam owes its inception to Kumaranasan (1873-1924), a Malayalam poet who aimed to educate and inspire underprivileged sections of society.
- He sought to propagate the principles of Sree Narayana Guru and his poems.
- It started a century ago, touching on themes of oppression, untouchability, and human triumphs.
- It uses a blend of prose and song, accompanied by a harmonium and tabla, to retell stories.
- Young performers compete in this art form, earning marks that influence their promotions.
- It is celebrated for its ability to communicate with urgency and directness, addressing societal issues.
Relevance in Modern Context
- Kathaprasangam, born out of the fight against casteism and superstitions, holds even more significance today as religious identities are asserted with violence, posing a threat to societal harmony.
- While newer forms of entertainment have gained popularity, they still attract young audiences eager to learn and share stories using new media platforms.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Salt and its Heath Hazards
Mains level: Rising burden of NCDs in India
Central Idea
- Salt is an essential component of our diet, adding flavor to our food and serving vital bodily functions.
- However, excessive salt intake can lead to health issues, including high blood pressure.
Salt Intake in India
- In India, a recent national survey revealed that men consume 8.9 grams, while women intake 7.1 grams of salt daily (Prashant Mathur et al., Scientific Reports, 2023).
- While the World Health Organization recommends a daily salt intake of 5 grams, the global average is much higher at 10.8 grams.
Salt and Health Implications
- Diverse Health Effects: Extensive research in animals and human surveys consistently link high salt consumption to kidney, brain, vascular, and immune system diseases. Conditions such as kidney stones and osteoporosis are associated with excessive sodium intake.
- Global Impact: Excessive salt intake contributes to approximately five million deaths worldwide annually, underscoring the global health impact of salt-related health issues.
The Yanomami Example
- The Yanomami people, living in the Amazon rainforest, follow a foraging lifestyle and consume a diet primarily composed of Cassava, plantains, fruit, fish, and occasionally tapir.
- Interestingly, they use peppers for flavor but do not use salt.
- Their daily salt intake is less than one gram, yet they maintain excellent health and fitness.
Salt and Obesity Connection
- Balancing Act: While our bodies require salt for essential functions, excessive salt consumption can lead to health problems, including obesity.
- Metabolic Impact: High salt intake impairs metabolism and increases the size of adipocytes, the cells that store fat, contributing to obesity.
- Dietary Preferences: There is a connection between a preference for high-fat and salty foods. Experiments with mice showed that those exposed to high-fat diets during gestation preferred salty water.
Reducing Salt Intake and Blood Pressure
- Population Studies: Reducing salt intake by five to eight grams daily can lead to a 4 mmHg drop in systolic blood pressure and a lower risk of cardiovascular disease, as demonstrated in population studies.
- Clinical Trials: Antihypertensive drugs, which lower blood pressure, show similar results, with an average reduction of 5 mmHg.
- Salt Alternatives: Replacing normal salt with a mixture of 75% sodium chloride and 25% potassium chloride reduced systolic blood pressure by 3.3 mmHg in a Chinese population study.
- Caution for Elderly: Reducing salt intake may pose risks for elderly adults, particularly if they are taking blood pressure medication, as it could lead to hypotension and falls.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: QR Code
Mains level: Food safety governance in India
Central Idea
- The Food Safety and Standards Authority of India (FSSAI) has recommended the incorporation of QR codes on food products, a significant step toward ensuring food safety and accessibility, especially for visually impaired individuals.
- This move holds paramount importance in a country with one of the world’s largest markets for packaged foods and a rising burden of non-communicable diseases (NCDs), largely driven by the consumption of pre-packaged foods.
QR Code move by FSSAI
- Comprehensive Data: QR codes will contain extensive product information, including ingredients, nutritional facts, allergens, manufacturing date, best before/expiry/use-by date, allergen warnings, and customer contact information.
- Compliance: This initiative aligns with the FSSAI’s Food Safety and Standards (Labelling and Display) Regulations, 2020, and the Rights of Persons with Disabilities Act, 2016, emphasizing accessibility for individuals with disabilities.
QR Code Origins
- Invention: QR codes, two-dimensional matrix barcodes, was invented in 1994 by the Japanese company Denso Wave for labelling automobile parts.
- Enhancing Brand Image: For food manufacturers, QR codes offer advantages such as improving brand image, fostering customer loyalty, and enhancing operational efficiency.
Significance of the Initiative
- India’s Market Dynamics: India’s burgeoning market for packaged foods, coupled with a surge in NCDs, underscores the need for informed consumer choices.
- Consumer Rights: The initiative empowers consumers to make informed decisions and verify if the product aligns with its advertised attributes.
- Front-of-Pack Labelling: The FSSAI is urged to combine QR codes for visually impaired individuals with front-of-pack labelling (FOPL) warning labels, ensuring a comprehensive approach.
Global Trends in QR Usage
- Top Users: Countries like the U.S., India, France, and the U.K. are among the leading users of QR codes.
- Market Growth: The global packaged food market, estimated at $303.26 billion in 2019, continues to expand, with QR codes playing a pivotal role in providing consumers with essential product information.
- Consumer Preference: Consumers increasingly consider food packaging as important as the product itself, with QR codes serving as a technology that enhances information accessibility and influences buying behaviour.
Conclusion
- The introduction of QR codes on food products by the FSSAI is a crucial step toward enhancing food safety and ensuring consumers have access to comprehensive product information.
- In an era of rising health concerns and growing markets for packaged foods, this initiative empowers consumers to make informed choices and underscores the importance of clear food labelling.
- QR codes are emerging as a global trend, simplifying information access and improving consumer experiences.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Cloud Seeding
Mains level: Drought mitigation in India
Central Idea
- Solapur, a city with limited rainfall due to its location on the leeward side of the Western Ghats, witnessed an 18% relative enhancement in rainfall through a cloud seeding experiment.
What is Cloud Seeding?
|
Explanation |
| Definition |
Weather modification technique to enhance precipitation. |
| Objective |
Increase rainfall or snowfall in areas facing water scarcity or drought. |
| Seeding Agents |
Silver iodide, calcium chloride, potassium iodide, sodium chloride, etc. |
| Suitable Clouds |
Typically convective clouds with moisture and vertical motion. |
| Methods of Dispersion |
Aircraft, rockets, ground-based generators, drones. |
| Environmental Impact |
Generally considered safe with minimal environmental impact. |
| Effectiveness |
Variable; depends on weather conditions and cloud characteristics. |
About CAIPEEX Experiment
- The initiative, known as the Cloud Aerosol Interaction and Precipitation Enhancement Experiment (CAIPEEX phase-4), sought to investigate the effectiveness of hygroscopic seeding in deep convective clouds.
- Over two hours after cloud seeding, an additional 8.67mm of rainfall was recorded, resulting in 867 million litres of augmented water availability.
Importance of the Experiment
- Growing NCD Burden: As India grapples with a rising burden of non-communicable diseases (NCDs), exacerbated by the consumption of pre-packaged foods, informed consumer choices and food safety become paramount.
- Cloud Seeding Efficacy: The experiment underscores cloud seeding as an effective strategy for enhancing rainfall, particularly in regions with suitable conditions.
- Cost-Benefit Analysis: The research evaluates the cost-effectiveness of cloud seeding, estimating the cost of producing water through cloud seeding at 18 paise per litre.
Key Findings and Methodology
- Randomized Seeding Experiment: The study selected 276 convective clouds, with 150 subjected to seeding and 122 serving as the control group.
- Criteria for Seeding: Clouds with characteristics such as significant liquid water content, vertical motion indicative of cloud growth, and depth exceeding one kilometre were targeted.
- Seeding Agent: Calcium chloride flares were employed for cloud seeding, ensuring optimal dispersion and entry into growing clouds.
- Rainfall Enhancement: Seeded clouds produced more rainfall than unseeded ones, resulting in an 18% relative enhancement.
Implications and Future Prospects
- Water Management: While cloud seeding alone cannot alleviate droughts, it can contribute to an 18% increase in rainfall and partially address water requirements.
- Cost Reduction: Utilizing indigenous seeding aircraft could reduce costs by over 50%, making cloud seeding more accessible.
- High-Resolution Numerical Model: The study has developed a numerical model to help stakeholders identify target locations, suitable clouds for seeding, and effective strategies for enhancing rainfall.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Criminal Procedure (Identification) Act
Mains level: Read the attached story
Central Idea
- In April 2022, the Indian Parliament passed the Criminal Procedure (Identification) Act (CrPI).
- It enabled law enforcement agencies to collect and analyze physical and biological samples, including retina and iris scans of arrested individuals.
Why in the news now?
- While the rules governing the Act were notified in September 2022, full implementation is pending as the National Crime Records Bureau (NCRB), the nodal agency, is still formulating guidelines and Standard Operating Procedures (SOPs).
- This legislation replaces the antiquated Identification of Prisoners Act, 1920, which primarily focused on collecting fingerprints, footprints, and photographs of certain convicted and non-convicted individuals.
CrPI Act: Purpose of the Legislation
- Modernization: The CrPI Act modernizes the process of capturing and recording biometric data and other measurements, supplanting outdated methods.
- Data Utilization: The Act facilitates the use of advanced techniques for capturing and recording body measurements, providing law enforcement with more comprehensive data.
Role of the NCRB
- Central Repository: The NCRB is tasked with storing, processing, sharing, disseminating, and destroying measurement records.
- Common Database: Impressions collected at any police station will be stored in a central database accessible to authorized police and prison officials nationwide.
- Technical Specifications: The NCRB will define equipment specifications for measurement collection, methods for handling and storing data compatible with the NCRB database, and the IT systems to be employed for measurements.
- Authorized Personnel: The Act extends measurement collection authority to police and prison officials, individuals skilled in measurement collection, registered medical practitioners, and authorized personnel.
- Data Retention: Records are to be retained for 75 years.
Implementation Status
- Fingerprinting: Police have been trained to record fingerprints through the National Automated Fingerprint Identification System (NAFIS), which assigns a unique National Fingerprint Number (NFN) to suspects.
- Challenges: The provision for iris scanners, DNA collection, and facial recognition systems has not been fully realized. NAFIS workstations are operational in many states, but challenges persist.
Challenges and Concerns
- Privacy Concerns: During debates in Parliament, opposition members raised concerns about the violation of fundamental rights, including the right to privacy.
- Data Protection: Questions have arisen about the safeguarding of DNA samples and facial recognition data.
- Lack of Awareness: Many officers are unaware of the rules specifying that measurements of individuals detained or arrested under certain sections of the law should not be recorded.
- Data Destruction: Individuals are responsible for requesting the destruction and disposal of their records from the central database if they have been falsely implicated or acquitted, which poses challenges.
- Right to Be Forgotten: Advocacy groups have emphasized the need to consider the “Right to Be Forgotten” in data retention policies.
- Training and Scope: Proper training and clear guidelines for DNA sample handling and storage are needed, and the scope of DNA collection in various types of crimes remains unclear.
- Connectivity Issues: Smaller states face connectivity challenges, hindering the fulfilment of secured Internet lease line requirements for data protection.
Conclusion
- The CrPI Act represents a significant step toward modernizing law enforcement data collection techniques.
- However, concerns related to privacy, data protection, and training, along with connectivity issues, underscore the need for comprehensive guidelines and safeguards to balance the imperatives of law enforcement with individual rights and data security.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SIM Swap Scam
Mains level: Phishing and other financial crimes
Central Idea
- In recent years, the SIM swap scam has emerged as a significant threat to individuals’ financial security.
- This fraudulent scheme exploits the link between physical SIM cards and banking applications, allowing scammers to gain access to victim’s bank accounts and personal information.
SIM Swap Scam: An Overview
- Exploiting Technological Advances: The SIM swap scam capitalizes on the integration of banking applications with phone numbers, enabling the generation of OTPs (One-Time Passwords) and the receipt of critical bank-related messages.
- Acquiring Personal Data: Scammers begin by collecting victims’ personal details, including phone numbers, bank account information, and addresses, often through phishing or vishing (voice phishing) techniques. Phishing involves sending malware-laden links through emails or messages to steal personal data.
- Forging Victim Identity: Armed with the stolen data, fraudsters visit a mobile operator’s retail outlet, impersonating the victim with forged ID proof. They falsely report the theft of the victim’s SIM card and/or mobile phone. As a result, they obtain a duplicate SIM card. Notably, fraudsters can secure a duplicate SIM even if the original is still functional. All activation messages and information are directed to the scammer rather than the victim.
Why do victims receive Missed Calls?
- Strategic Communication: In contrast to typical scams that involve tricking individuals into divulging OTPs and private data during phone calls, the SIM swap scam operates differently.
- Distraction Tactic: Fraudsters initiate missed calls to their targets, prompting victims to check their phones and potentially ignore network connectivity issues.
- SIM Exchange Execution: Perpetrators use these missed calls as a diversion while they execute the SIM swap. Once the SIM is swapped, fraudsters gain control over all calls and messages through the victim’s SIM, allowing them to initiate transactions unnoticed.
How do scammers withdraw money?
- Phishing Information: After acquiring personal data through phishing attacks, scammers use this information to access bank portals and generate OTPs required for fund withdrawal.
- OTP Access: Having control over the victim’s SIM card, fraudsters receive all OTPs, enabling them to authenticate transactions and steal money.
- Data Sources: Accused individuals purchase data from hackers involved in data breaches or from online portals. Data breaches often involve private companies losing vast amounts of customer data.
- Example: In April, Rentomojo, an electronics and furniture rental company, reported a data breach, acknowledging unauthorized access to customer data due to a cloud misconfiguration.
Arrests and Challenges
- Absence of Arrests: Delhi Police has not made any arrests related to the SIM swap scam. The accused effectively evaded capture by discarding duplicate SIMs and operating from multiple locations.
- Cryptocurrency Conversion: Stolen funds are often converted into cryptocurrency, making tracking Bitcoin or other cryptocurrency transactions impossible due to encryption.
Protecting Yourself from SIM Swap Fraud
- Stay Vigilant: Be cautious of vishing or phishing attacks and avoid clicking on suspicious links or sharing sensitive information.
- Don’t Ignore Missed Calls: Don’t ignore missed calls or switch off your phone, especially if you receive multiple missed calls. Contact your mobile operator immediately if such activity occurs.
- Regularly Update Passwords: Change bank account passwords regularly for added security.
- Set Up Alerts: Register for regular SMS and email alerts for banking transactions to stay informed.
- Report Fraud: In case of fraud, promptly contact your bank authorities to block your account and prevent further fraud.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Lewis Model
Mains level: Read the attached story
Central Idea
- In 1954, the renowned Saint Lucian economist, Sir William Arthur Lewis, presented a groundbreaking theory that suggested developing countries with a surplus labor force could achieve significant industrialization.
- He envisioned a shift of labor from subsistence agriculture to the expanding manufacturing sector.
- However, the Indian experience over the years has shown that this model has not unfolded exactly as Lewis had anticipated.
What is the Lewis Model?
- Lewis’s Theory: Sir William Arthur Lewis’s influential essay, ‘Economic Development with Unlimited Supplies of Labor,’ proposed that countries with surplus labor could industrialize by paying wages just high enough to attract workers away from family farms.
- Key Assumptions: The model assumed that higher wages in the manufacturing sector would match the additional output produced, leading to the creation and expansion of industries without limits.
- Bottlenecks: The primary constraints to this labor transfer were the availability of capital and natural resources, which these countries often lacked relative to their population.
India’s Deviation from the Model
- Historical Perspective: In the early 1990s, agriculture employed about two-thirds of India’s workforce.
- Limited Impact of Manufacturing: While the share of agriculture in employment declined to 48.9% by 2011-12, manufacturing’s share only marginally increased from 10.4% to 12.6% during the same period.
- Recent Trends: The farm sector’s share increased temporarily due to the Covid-19 pandemic, reaching 46.5% in 2022-23.
- Manufacturing’s Decline: Conversely, manufacturing’s share dropped to 11.4% in 2022-23.
- Shift within Subsistence Sectors: Labor movement primarily occurs within subsistence sectors, such as low-paid services and construction, rather than towards manufacturing or high-productivity services.
State-Level Variations
- Gujarat’s Exception: Gujarat stands out with nearly 24% of its workforce employed in manufacturing, mirroring Lewis’s model.
- Industry and Agriculture: Gujarat’s workforce in agriculture remains relatively high compared to other states.
China’s Model vs. India’s Reality
- China’s Success: China leveraged surplus rural labor to become “the world’s factory” during the late 20th century.
- India’s Challenges: India still has surplus labor working in subsistence sectors, but the path to conventional employment opportunities is narrowing.
- Technological Disruption: Manufacturing is increasingly capital-intensive, incorporating labor-saving and labor-displacing technologies.
- New Economic Development Model: NITI Aayog is exploring alternative avenues for job creation, emphasizing activities related to agriculture, such as aggregation, processing, transportation, and bio-based industries.
- Bio-Based Opportunities: Crop residues, bio-fuels, bio-based products, and supply chain services offer potential employment options linked to agriculture.
Conclusion
- India’s journey towards economic transformation has deviated from the classic Lewis model.
- The changing nature of manufacturing and the need for a reimagined labour transition call for innovative approaches that recognize the country’s unique circumstances and opportunities in sectors beyond traditional agriculture.
- NITI Aayog’s exploration of alternative development models signifies a shift toward addressing contemporary challenges and fostering sustainable economic growth.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UNGA Resolutions
Mains level: India's stance on Palestinian War
Central Idea
- The recent United Nations General Assembly (UNGA) vote on a resolution calling for an immediate humanitarian truce in the Israel-Hamas conflict saw India abstaining from the vote.
What are UNGA Resolutions?
|
UNGA Resolutions and Voting |
| What is it? |
Cover diverse global issues, including disarmament, climate change, and humanitarian aid. |
| Types |
Include regular, consensus (adopted without a vote), and procedural resolutions. |
| Who can initiate? |
Originates from member states, UN committees, or regional groups after negotiations and debates. |
| Nature of Enforcement |
Non-binding but hold moral and political influence on member states and UN bodies. |
| Significance |
Shape international norms, public opinion, and state behavior despite lacking legal enforcement. |
| Features of UNGA Resolutions |
Discussed and adopted during annual sessions, with possible special sessions when required. |
| Equal Voting Rights |
Each member state has an equal vote, ensuring equality regardless of size or influence. |
| Majority Requirements |
Typically adopted with a two-thirds majority of present and voting member states (e.g., 128 votes if all 193 are present). |
| Varied Majority Types |
Some require a simple majority, while others, like UN Charter amendments, need a two-thirds majority of all member states. |
| Abstentions |
Member states can abstain, signifying neutrality without supporting or opposing. |
| Challenges and Divisions |
Resolutions may face opposition or receive no votes, leading to international discussions and divisions. |
Resolution over Israel-Hamas War
- The resolution, titled “Protection of civilians and upholding legal and humanitarian obligations,” was proposed by Jordan on behalf of the Arab League and co-sponsored by approximately 40 countries.
- It called for an immediate humanitarian truce, cessation of hostilities, and unhindered humanitarian access to Gaza.
- However, it did not specifically refer to the cowardly terror attacks by Hamas, which resulted in numerous Israeli casualties and hostages.
- Ultimately, the resolution passed with 120 votes in favor, 14 against (including US and UK), and 45 abstentions, with India among the abstaining nations.
India’s Abstinent
- India defended its abstention by citing the absence of “explicit condemnation” of the October 7 terror attacks in Israel in the resolution.
- Since India’s concerns regarding these omissions were not addressed in the final text of the resolution, abstaining was the chosen course of action.
- The government emphasized that there should be no ambiguity when it comes to condemning terrorism and that its position on this matter remains “steadfast and consistent.”
- Key elements of India’s statement include-
- Condemnation of violence, including the October 7 attacks by Hamas.
- Acknowledgement of the humanitarian crisis in Gaza and support for international de-escalation efforts.
- Concern about the security situation and a call for all parties to exercise restraint.
- Reiteration of India’s support for a negotiated two-state solution in the Israel-Palestine issue.
- Encouragement for diplomacy and dialogue to create conditions for peace negotiations.
Why so furore over India’s action?
- India’s abstention differed from its previous vote in favour of a UNGA resolution calling for a ceasefire in Gaza in 2018 and other similar votes in the past.
- Opposition parties in India criticized the government for refusing to take a stronger stand on the humanitarian issue.
- They argued that India’s abstention stood alone among countries in the Global South, South Asia, and BRICS, all of which had voted in favour of the resolution.
Significance of India’s action
- Balanced Position: India’s abstention mirrors its approach to other global conflicts, such as the Russia-Ukraine war, where it seeks to maintain a diplomatic balance between opposing sides.
- Not Legally Binding: Unlike UN Security Council resolutions, UNGA resolutions are not legally binding, meaning that Israel and the US are not obligated to act on it.
- Weight and Moral Authority: Despite its non-binding nature, the resolution carries significant moral weight, with 120 votes in favour signifying support for international law and proportionate use of force.
- India’s Principled Stand: India reiterated its support for a negotiated two-state solution to the Israel-Palestine issue and called for diplomacy and dialogue to resolve the conflict.
Conclusion
- India’s abstention in the recent UN General Assembly vote reflects its balanced and nuanced approach to international conflicts.
- While it has drawn criticism from some quarters, it underscores India’s commitment to principles of diplomacy and its focus on a negotiated resolution to complex global issues.
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