From UPSC perspective, the following things are important :
Prelims level: About the 2019 National Research Foundation (NRF) Project Report
Mains level: Steps taken by Government for RD
Why in the News?
In 2023, the Anusandhan National Research Foundation (ANRF) Bill was passed by both Houses of Parliament, heralding a significant new initiative aimed at promoting and advancing research in India, particularly within the country’s universities and colleges.
About 2019 National Research Foundation (NRF) Project Report
Objective: The 2019 NRF project report emphasized the goal of seeding, growing, and facilitating research in India, particularly within universities and colleges.
Aim: The project aimed to create an environment where research could thrive free from bureaucratic constraints, providing a funding boost and fostering collaboration with industry partners.
Scope and Structure: NRF will have five major divisions: Sciences, Technology, Social Sciences, Humanities, and Arts
Priority: A top priority mentioned in the report was “growing outstanding research cells already existing at State Universities.”
Lack of Industry Representation in India:
Governing Bodies Composition: The ANRF Governing Board and Executive Council lack representation from key organizations, such as Central and State universities or colleges.
Current Members: Members primarily include Secretaries from various government science departments, directors of top research institutions, and international figures, but not from Indian industry or local academia.
Industry and Academia Input: There is a critical need for representatives who understand the practical challenges and bottlenecks of the current university system and have ground-level experience.
Diversity Issues: There is minimal representation from the industry and a lack of diversity, with the sole industry representative being an Indian-American based in Silicon Valley and the only woman representative being the Secretary of the DSIR.
R&D underfunding:
Current Funding Levels: India significantly underfunds research and development, allocating less than 1% of GDP to R&D. There is a pressing need to increase this to at least 4% to make Indian innovation globally competitive.
Systemic Overhaul: The current funding system requires a significant overhaul to boost research. This includes implementing a robust grant management system, ensuring timely disbursal of funds, and minimizing bureaucratic hurdles at both the funding body and grantee institutions.
Grant and Fellowship Disbursal: Timely disbursal of research grants and student fellowships is crucial. The aim should be a quick turnaround time of less than six months between application and fund disbursal to maintain the momentum of research activities.
Flexibility in Spending: Researchers need flexibility in spending research funds. The current system’s stringent general financial rules (GFR) and the requirement to use the Government e-marketplace (GeM) portal can hinder efficient resource utilization.
Diverse and Competent Leadership: The ANRF should be staffed with diverse representatives from practising natural and social scientists, young entrepreneurs, and women.
Other steps taken by the Government:
Atal Innovation Mission (AIM): It is a flagship initiative to promote innovation and entrepreneurship in the country. It aims to create an ecosystem for innovation and provide support to startups through incubators, accelerators, and mentorship programs.
Impacting Research Innovation and Technology (IMPRINT) Program: IMPRINT is a joint initiative of the Ministry of Education and the Ministry of Science and Technology to promote translational research.
Uchhatar Avishkar Yojana (UAY): UAY is a scheme to promote industry-specific need-based research in premier institutions.
Conclusion: The ANRF should actively involve representatives from both Indian industry and academia in its Governing Board and Executive Council. This inclusion will ensure that decision-making processes are informed by practical insights and ground-level experiences.
Mains PYQ:
Q Scientific research in Indian universities is declining, because a career in science is not as attractive as are business professions, engineering or administration, and the universities are becoming consumer-oriented. Critically comment. (UPSC IAS/2014)
From UPSC perspective, the following things are important :
Prelims level: Who are Gig workers?
Mains level: Why are safeguards necessary for Gig workers?
Why in the News?
The Karnataka government released the draft of the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, becoming the second Indian state to take such an initiative, following Rajasthan.
Who are the Gig workers?
Gig workers are independent contractors, freelancers, or temporary workers who are hired for specific projects or tasks, often through online platforms, rather than being employed in traditional long-term employer-employee relationships.
Key highlight of the Bill proposed for the welfare of gig workers:
Social Security and Welfare Fund: Establishment of a welfare boards, social security and welfare fund for gig workers, funded by a welfare fee on transactions or company turnover, and contributions from the Union and State governments.
Grievance Redressal Mechanism: Introduction of a two-level grievance redressal mechanism to address workers’ complaints and ensure transparency in the automated monitoring and decision-making systems used by platforms.
Fair Termination Procedures: Requirement for contracts to list exhaustive grounds for termination, with a 14-day prior notice and valid reasons in writing needed before terminating a worker.
Payment and Deductions: Mandate weekly payments to workers, with clear communication regarding any payment deductions, and the right for workers to refuse a specified number of gigs per week without adverse consequences.
Safe Working Conditions and Contract Transparency: Obligation for aggregators to provide reasonable and safe working conditions, registration of all gig workers, and contracts to be written in simple language with a 14-day notice for any changes, allowing workers to terminate the contract without losing existing entitlements.
What are the impacts of the labour market in a larger domain, and why are safeguards necessary?
Lack of Basic Rights and Social Security: Gig workers are often classified as “partners” rather than employees, leaving them security outside the purview of labour protection laws and without access to basic rights and social benefits.
Arbitrary Terminations and Lack of Grievance Redressal: Instances of arbitrary terminations, blacklisting, and dismissals without hearing the worker’s side are common in the absence of regulatory laws. Automated monitoring and decision-making systems often make these decisions, leaving no room for grievance redressal.
Reduced Payments and Exploitation: Over the years, gig workers have faced reduced payments, arbitrary deductions, and exploitation due to the lack of regulatory laws governing the gig economy.
The wide gap between the purchasing power of these workers and the affluent consumers they serve raises questions about the long-term sustainability of this model.
Need for Transparency and Fair Contracts: The absence of transparency in automated monitoring systems and decision-making by platforms, as well as the lack of fair contracts, has led to the exploitation of gig workers.
There is a need for the state to review contract templates and ensure fair contracts with gig workers.
Lack of Access to Credit and Skill Development: Gig workers often lack access to credit and skill development opportunities, hindering their growth and formalization.
There is a need for enabling platforms to provide these benefits to gig workers.
State-level and National level Initiatives taken previously:
Code on Social Security, 2020: At the national level, the Code on Social Security, 2020 recognized those who freelance or work under short-term contracts. It mandated employers to provide benefits similar to those of regular employees to gig workers.
Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act: Rajasthan became the first state to introduce a bill for the welfare of gig workers in 2023.
The bill, which became an Act in September 2023, sought to establish a welfare board and fund for gig workers.
However, the Act has gone into cold storage after the changed government in November 2023.
Haryana Gig Workers Welfare Board Bill: The bill aims to establish a state-level board dedicated to the social and economic security of gig workers involved in delivering goods, services, and food at doorsteps.
Case study:
In California (USA), the Proposition 22 ballot measure allows app-based transportation and delivery companies to classify drivers as independent contractors while providing them with some benefits like a health insurance subsidy and minimum earnings guarantee.
New York City (USA) has passed legislation requiring food delivery apps to provide workers with benefits like paid sick leave and minimum pay.
Way forward:
Unified Legislation: Introduce a comprehensive national-level legal framework specifically addressing the rights and welfare of gig workers. This legislation should encompass social security, fair wages, occupational safety, and grievance redressal mechanisms.
Strict Enforcement: Ensure robust enforcement of these laws through dedicated government bodies and regular audits of gig economy platforms. Penalties for non-compliance should be substantial enough to deter exploitative practices.
Mains PYQ:
Q Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC IAS/2021)
There have been four cases, including three deaths, of the rare, but fatal brain-eating primary amoebic Meningoencephalitis (PAM) in Kerala in the last two months.
What is Primary Amoebic Meningoencephalitis (PAM)?
PAM is a rare brain infection caused by Naegleria fowleri, a free-living amoeba found in warm freshwater and soil worldwide.
An amoeba is a type of cell or unicellular organism with the ability to alter its shape, primarily by extending and retracting pseudopods.
Higher temperatures of up to 115°F (46°C) are conducive to its growth and it can survive for short periods in warm environments.
The amoeba enters the body through the nose, typically during activities like swimming, and travels to the brain, causing severe damage.
According to the US Centers for Disease Control and Prevention (CDC), most people with PAM die within 1 to 18 days after symptoms begin. It usually leads to coma and death after 5 days.
Diagnosis and Treatment:
Currently, there are no established effective treatments for PAM.
Diagnosis involves PCR tests of cerebrospinal fluid, though detection can be challenging due to the rarity of PAM.
Treatment followsCDC guidelines, including miltefosine, Azithromycin, and Amphotericin B, with miltefosine recently procured by the State Health Department from Germany.
Medical interventions typically involve a combination of drugs, including amphotericin B, azithromycin, fluconazole, rifampin, miltefosine, and dexamethasone.
From UPSC perspective, the following things are important :
Prelims level: Chandravalli Caves
Why in the News?
Observations made by previous historians who had found painted pottery and coins from the Shatavahana empire and the pre-historic period were once again in the news.
About Chandravalli Caves (also known as Ankali Math)
Chandravalli, a cave temple near Chitradurga, is also a pre-historic site.
Observations at the Site:
Previous excavations were carried out by Mortimer Wheeler under the guidance of the Archaeological Survey of India in 1947.
The cave features multiple chambers including a puja place with a shivlinga, a drawing room, a bedroom, and a water outlet connected to an internal tank.
The caves are accessible only through a narrow entrance, with interiors visible only with the help of a powerful torch hence they are also called as “Dark Caves”.
Presently, Excavations have revealed artifacts such as coins, painted bowls, and earthen pots from various dynasties such as the Hoysala, the Satavahana, and the Vijayanagara.
Excavation reports show that human habitation existed here even during the Iron Age.
Historical Aspect:
They were named after a saint from Ankalagi in Belagavi district who is believed to have settled here.
The cave also contains a rock inscription of Mayurasharma, the founder of the Kadamba dynasty, dating back to AD 450.
About Kadamba dynasty
The Kadambas of Goa were vassals of the Chalukya dynasty of Kalyana. In recognition of his assistance in defeating the Rashtrakutas, Chalukyan emperor Tailapa II appointed Kadamba Shasthadeva as the provincial governor (Mahamandaleshwara) of Goa.
In 960 AD, Shasthadeva captured the city of Chandavara from the Shilaharas and later seized control of the port of Gopakapattana, which is present-day Goa.
Talara Nevayya’s son Gundayya may have fought alongside Shasthadeva in the conquest of the port but died in the battle after successfully capturing it.
Coins from Indian kings like Krishnaraja Wodeyar III, Krishnadevaraya, various Satavahana kings, and Viraraya of the Hoysala kingdom have been discovered.
Among the foreign coins found are denarii of Roman ruler Augustus Caesar and a coin of Chinese Han dynasty Emperor Wu Ti.
Geographical Aspects:
The area is semi-arid with scrub vegetation and a stream running through it.
These caves are surrounded by three hills: Chitradurga, Kirabanakallu, and Jolagudda.
PYQ:
[2021] Which one of the following statements is correct?
(a) Ajanta Caves lie in the gorge of Waghora river.
(b) Sanchi Stupa lies in the gorge of Chambal river.
(c) Pandu-lena Cave Shrines lie in the gorge of Narmada river.
(d) Amaravati Stupa lies in the gorge of Godavari river.
Prelims Only | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
This trend, aimed at reducing import duties by the traders, poses potential long-term revenue losses for India.
India’s Silver Imports
India imported a record 4,172 metric tons of silver in the first four months of 2024, far exceeding the total of 3,625 tons imported in all of 2023.
In February 2024 alone, India imported a record 2,295 metric tons of silver, up from 637 tons in January. This represents a 260% increase.
The surge in imports has been driven by increasing demand from the Solar panel industryas well as a rise in Speculative Investment, with investors betting on silver outperforming gold.
Nearly half of India’s silver imports in 2024 so far have come from the United Arab Emirates (UAE) due to a lower import duty under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
India generally imposes a 15% import duty on silver.
However, because of the CEPA signed between India and the UAE in 2022, allows private traders to import silver through the India International Bullion Exchange (IIBX) paying 9% duty, and an extra 3% in value-added tax.
The government is now concerned about the 647-fold spike in silver imports from the UAE and plans to discuss the issue with Abu Dhabi.
The Gift City exchange, while clearing imports from Dubai since December 2023, is under scrutiny for potential violations of these rules compared to imports from other ports.
About India International Bullion Exchange (IIBX)
Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins.
The IIBX was announced during the 2020 budget speech by the Finance Minister.
It is set up at the International Financial Services Center (IFSC) located in GIFT City, Gandhinagar.
It is India’s first bullion exchange, launched on 29 July 2022 in Gujarat.
It is the 3rd exchange of its kind in the globe.
Regulations and Setup:
The International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020, were notified in December 2020 specifically for the trading of precious metals, including gold and silver.
These regulations encompass the operations of the bullion exchange, Clearing Corporation, depository, and vaults associated with IIBX.
Operational Framework
Previously, India had liberalized gold imports through nominated banks and agencies in the 1990s.
With IIBX, eligible qualified jewellers in India can directly import gold.
Jewellers need to become trading partners or clients of an existing trading member to participate in the exchange.
Comparison with Previous Practices
Previously, bullion in India was imported under a consignment modelby nominated banks and agencies approved by the RBI, which added handling fees and premiums.
The introduction of IIBX aims to streamline the supply chain by allowing direct imports through the exchange, potentially reducing costs for traders and consumers alike.
Recommendations for Addressing Challenges
Renegotiation of CEPA Terms: The Global Trade Research Initiative (GTRI) advocates for revising CEPA terms to curb duty arbitrage and enforce stricter checks on value addition claims by Gift City exchange.
Enhanced Regulatory Oversight: GTRI proposes limiting silver imports to RBI/DGFT-nominated agencies to mitigate risks associated with mis-declared imports and ensure compliance with CEPA conditions.
Investigation and Oversight: There is a call for a thorough investigation into relationships between export and import firms to identify and mitigate conflicts of interest or familial ties that could influence import practices.
PYQ:
[2016] What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?
To bring the idle gold lying with Indian households into the economy.
To promote FDI in the gold and jewellery sector.
To reduce India’s dependence on gold imports.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
From UPSC perspective, the following things are important :
Prelims level: General Zorawar; LT Zorawar
Why in the News?
The Defence Research and Development Organisation (DRDO) and private company Larsen & Toubro (L&T) unveiled the prototype of the Zorawar light tank.
Note:
India primarily has T-90S Bhishma and T-72 Ajeya produced under license from Russia.
The Future Ready Combat Vehicle (FRCV) program aims to develop and induct next-generation Indigenous main battle tanks to replace the ageing T-72 fleet starting from 2030 onwards
What is Zorawar Tank?
The Zorawar Tank was developed jointly by the DRDO and Larsen & Toubro (L&T).
It is an indigenous light tank designed specifically for operations in high-altitude regions like Ladakh and Sikkim.
It has been developed under ‘Project Zorawar’, named after General Zorawar Singh of Jammu.
Its prototype was unveiled in July 2023, with internal testing completed at L&T’s facility in Gujarat.
It has been scheduled for extensive trials in various conditions, including summer, winter, and high-altitude environments, with plans for inductionby August 2025.
Who was General Zorawar Singh (1784–1841)?
Zorawar Singh Chandel was a military general of theDogra Rajput ruler, Gulab Singh of Jammu.
He served as the governor (wazir-e-wazarat) of Kishtwar and extended the territories of the kingdom by conquering Ladakh and Baltistan.
He also boldly attempted the conquest of Western Tibet (Ngari Khorsum) but was killed in battle of To-yo during the Dogra-Tibetan war.
About his legacy of conquests in the Himalayas including Ladakh, Tibet, Baltistan and Skardu as General and Wazir, Zorowar Singh has been referred to as the “Napoleon of India“, and “Conqueror of Ladakh“.
Operational Capabilities:
Designed to operate effectively in extreme weather conditions and at high altitudes (above 15,000 feet) with minimal logistic support.
Intended for use in challenging terrains where heavier tanks like T-72 and T-90 face limitations.
Includes thermal sights, night-fighting capabilities, and features to reduce visual, sound, heat, and electromagnetic signatures.
Technical Specifications:
Weight: Approximately 25 tons, allowing for air transportation.
Armament: Equipped with a 105mm turret from John Cockerill.
Firepower: Capable of firing advanced smart munitions and anti-tank guided missiles.
Mobility: Agile and manoeuvrable on steep slopes and riverine regions, designed to be amphibious.
Engine and Power:
Initially planned with a German engine, but due to delays, currently powered by a Cummins engine assembled in India.
DRDO is concurrently working on developing a new power pack and a 1400 HP engine to enhance performance.
Various Indigenous Tanks in the Indian Army
Features
Vijayanta (1965)
First indigenous main battle tank of the Indian Army
Based on a licensed design of the Vickers Mk.1 tank
Equipped with a 105mm rifled gun
Top speed of 52 km/h and range of 201 km
Crew of 4 (commander, gunner, loader, driver)
Upgrades included an improved fire control system, armour, and engine
Arjun (2004)
India’s first fully Indigenous main battle tank developed by the Combat Vehicles Research and Development Establishment
Equipped with a 120mm rifled gun and has top speed of 67 km/h and range of 483 km
Crew of 4 (commander, gunner, loader, driver)
Features advanced fire control system, composite armor, and NBC protection
Arjun Mk-1A variant with improved capabilities entered service in 2022
From UPSC perspective, the following things are important :
Prelims level: Four-year undergraduate program
Why in the News?
Kerala CM Pinarayi Vijayan inaugurated the curriculum of Four-Year Undergraduate Programmes (FYUP) in the state, stressing that it is in line with changes in the Global Education System where the focus is equally on imparting knowledge as well as the transfer of skills and vocational training.
About Four-Year Undergraduate Program (FYUP):
Parameters
Details
Key features
Students can choose their major and minor subjects freely, for example science students can pursue humanities courses.
Provision for students to complete the degree in 2.5 years if they secure the required credits.
Offers 16 FYUP honors programs with research across science, arts, commerce and business streams at the University of Kerala.
FYUP curriculum
It is designed to provide students with knowledge, intellectual abilities, multidisciplinary perspectives, flexible skills, social commitment and research aptitude to make them responsible citizens and offer multiple opportunities in research and employment
Includes online courses, skill development, internships and research projects.
Eligibility criteria
Students need a CGPA of 7.5 or above to advance to the 4th year and get an honors degree with research.
Admission based on 12th marks for now, entrance exam planned from next year.
Administrative and Technological Upgrades required:
Regulatory Revisions: Plans for a comprehensive revision of University Acts and Regulations to streamline academic processes and enhance efficiency.
K-REAP Initiative: Introduction of Kerala Resources for Education Administration and Planning (K-REAP), a governance software to centralize institutional activities.
Issues with FYUP Program
Implementation Challenges: The introduction of the FYUP faced logistical and administrative hurdles, impacting its rollout across Kerala’s higher educational institutions.
Curriculum Adaptation: Critics argue that the FYUP’s curriculum overhaul lacks sufficient alignment with industry needs and fails to adequately prepare students for real-world challenges.
Student Adaptation: Some students and educators have expressed concerns about the abrupt shift in academic structure and its impact on learning outcomes and student performance.
Evaluation Methods: There is ongoing debate over the effectiveness of the FYUP’s assessment methods, with some stakeholders questioning its ability to accurately gauge student knowledge and skills.
Policy Revisions: Continuous revisions and adjustments to the FYUP’s policies and regulations are needed to address evolving educational needs and feedback from various stakeholders.
New Education Policy (NEP), 2020:
The New Education Policy (NEP) 2020 introduced by the Government of India aims to transform the educational landscape of the country.
One of the key changes in the NEP is the restructuring of the duration and framework of undergraduate programs.
The NEP 2020 introduces a four-year undergraduate program as a standard duration for bachelor’s degrees, replacing the traditional three-year format.
Students can exit the program at different stages with a qualification. For example:
After 1 Year: Certificate
After 2 Years: Diploma
After 3 Years: Bachelor’s Degree
After 4 Years: Bachelor’s Degree with Research
PYQ:
[2015] The quality of higher education in India requires major improvement to make it internationally competitive. Do you think that the entry of foreign educational institutions would help improve the quality of technical and higher education in the country. Discuss.
From UPSC perspective, the following things are important :
Prelims level: Constitutional Provisions
Mains level: Basic Structure and foundational principles should never be allowed to be eclipsed
Why in the news?
Voters have cleverly embraced the idea of constitutional principles to protect their freedoms. It’s now everyone’s responsibility, including elected officials, citizens, and the judiciary, to ensure that there’s no overreach.
Constitutional Provisions:
Article 99: Mandates that every member of Parliament must take an oath or affirmation to uphold the Constitution.
Third Schedule: Specifies the form of oath or affirmation that members of Parliament, judges of the Supreme Court, and High Courts must take.
Part III (Fundamental Rights): Guarantees civil liberties, such as the rights to equality, freedom of speech, and right to life.
Part IV (Directive Principles of State Policy): Provides guidelines for governance, directing the state in certain policy matters for the welfare of citizens.
Basic Structure and Foundational Principles:
Kesavananda Bharati Case (1973): Established the doctrine that certain features of the Constitution are beyond the amending power of Parliament if they violate its “Basic Structure”, ensuring that fundamental principles like democracy, secularism, judicial review, and federalism cannot be altered.
Foundational Principles: Include the rule of law, separation of powers, judicial independence, and protection of fundamental rights.
Basic Structure and foundational principles should never be allowed to be eclipsed
Protection of Fundamental Rights: The Basic Structure doctrine protects fundamental rights and core principles like democracy, secularism, judicial independence, and federalism in India.
Preservation of Constitutional Balance: Eclipsing the Basic Structure and foundational principles could upset the delicate balance of powers among the legislature, executive, and judiciary. These principles ensure that no single branch of government becomes disproportionately powerful, thereby maintaining the checks and balances essential for democratic governance.
Upholding the Rule of Law: The Basic Structure doctrine reinforces the supremacy of the Constitution as the supreme law of the land. By preventing its core principles from being undermined or diluted through constitutional amendments or legislative actions, it ensures that all state actions, including laws passed by Parliament, are consistent with constitutional norms and the rule of law.
Significance of “Judicial Overreach”:
Protection of Rights: Judicial overreach often arises when courts intervene to protect fundamental rights guaranteed by the Constitution, especially when legislative or executive actions are perceived to violate these rights.
Checks and Balances: It serves as a crucial check on the powers of the legislature and executive, ensuring that their actions conform to constitutional principles and do not exceed their authority.
Defending the Constitution: Courts may intervene to uphold the supremacy of the Constitution, ensuring that laws and actions comply with its provisions, including the Basic Structure doctrine established in the Kesavananda Bharati case.
Criticisms of judicial overreach:
Interference with the Separation of Powers: Critics argue that judicial overreach interferes with the constitutional principle of separation of powers.
Lack of Accountability: Another criticism of judicial overreach is that the judiciary is not accountable to the people in the same way that elected representatives are. Because Judges are appointed, not elected
Dilution of Democracy: Some critics argue that judicial overreach can undermine the democratic process by taking important decisions out of the hands of elected officials and placing them in the hands of judges.
Mains PYQ:
Q What was held in the Coelho case? In this context, can you say that judicial review is of key importance amongst the basic features of the Constitution? (UPSC IAS/2016)
From UPSC perspective, the following things are important :
Prelims level: Fintech Sector
Mains level: Challenges and significance of the fintech sector,
Why in the news?
Despite achieving a significant milestone in H1 2024, the fintech sector has encountered notable funding difficulties.
What is the Fintech Sector?
The fintech sector encompasses technologies and innovations that aim to compete with traditional financial methods in the delivery of financial services. This includes a wide range of applications like mobile banking, online payments, digital lending, and blockchain technology.
Present Report Insights
Funding Decline: The Indian fintech sector recorded $795 million in funding in H1 2024, a decrease of 11% from H2 2023 and 59% from H1 2023.
Global Ranking: Despite the decline, the Indian fintech ecosystem ranked among the top three globally funded sectors alongside the US and UK in H1 2024.
Major Transactions: Only two funding rounds exceeded $100 million in 2024, with Perfios becoming the only unicorn. Bengaluru led the funding, followed by Mumbai and Pune.
Segment Performance: Alternative Lending, RegTech, and BankingTech were the top-performing segments, with Alternative Lending securing $646 million, making up 81% of the total funding.
Acquisitions and IPOs: There were six acquisitions and five IPOs in H1 2024, marking significant activity despite the overall funding challenges.
Significance of Fintech Sector
Financial Inclusion: Fintech innovations enhance financial inclusion by providing access to financial services to unbanked and underbanked populations.
Economic Growth: The sector contributes significantly to economic growth by fostering innovation, creating jobs, and boosting consumer spending.
Efficiency and Transparency: Fintech solutions improve efficiency and transparency in financial transactions, reducing costs and fraud.
Support for Startups: The sector offers numerous opportunities for startups, driving entrepreneurship and competition.
Challenges
Data Security: Fintech companies must implement strong security measures to protect sensitive customer data from cyber-attacks and data breaches. For example, Acko, a leading Indian fintech startup, has faced issues with data breaches in the past, highlighting the importance of robust data security protocols in the industry.
Regulatory Compliance: The fintech industry is highly regulated, requiring companies to stay updated on the latest government policies and ensure compliance to avoid penalties. For example, the Reserve Bank of India (RBI) has issued guidelines to protect consumers from predatory lending practices by digital lenders, underscoring the need for fintech firms to navigate the evolving regulatory landscape.
Customer Acquisition and Retention: Attracting and retaining customers is critical for fintech firms. For example, BharatPe, a prominent Indian fintech company, has faced challenges in customer retention due to its focus on merchant acquisition.
Funding and Investment: Securing adequate funding and investments remains a challenge for many fintech startups. For example, Paytm, one of India’s largest fintech companies, has faced scrutiny from investors due to its inability to achieve profitability
How India Can Improve Its Fintech Sector
Supportive Regulatory Environment: Create a regulatory framework that encourages innovation while ensuring consumer protection and systemic stability, facilitating a balanced growth of the fintech ecosystem.
Infrastructure Development: Invest in digital infrastructure, such as high-speed internet and mobile connectivity, to support the widespread adoption and efficient functioning of fintech applications across the country.
Focus on Cybersecurity: Ensure robust cybersecurity measures to protect against fraud and cyber-attacks, building trust among users and maintaining the integrity of fintech services.
Steps taken by the government:
Regulatory Sandbox: The Securities and Exchange Board of India (SEBI) introduced a framework for regulatory sandbox in 2020 to allow fintech companies to experiment with new products and services in a controlled environment.
Digital Personal Data Protection Bill: Introduced in 2022, this bill aims to create a framework for the protection of personal data collected by fintech companies.
Guidelines on Digital Lending: In 2022, the Reserve Bank of India (RBI) issued guidelines to protect consumers from predatory lending practices by digital lenders.
Promoting Financial Inclusion: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has helped in enrolling over 523.9 million beneficiaries for new bank accounts, enabling fintech startups to reach a large consumer base.
Aadhar and UPI: The unique biometric identification system Aadhar and the Unified Payments Interface (UPI) have improved transparency and delivery of financial service
Conclusion: Fintech companies in India face challenges including data security, regulatory compliance, customer acquisition, and securing investments. Addressing these ensures sustainable growth and trust in a competitive market environment.
Mains PYQ:
Q Has digital illiteracy, particularly in rural areas, coupled with a lack of Information and Communication Technology (ICT) accessibility hindered socio-economic development? Examine with justification. (UPSC IAS/2021)
From UPSC perspective, the following things are important :
Prelims level: What is Neofascism?
Mains level: Impact of Neofascism on Europe
Why in the news?
Before France’s UEFA Euro 2024 opener, Kylian Mbappé warned against extremist power, saying he doesn’t want to represent a country that opposes his values. Marcus Thuram urged against supporting Marine Le Pen’s party.
Who is Kylian Mbappé?
Kylian Mbappé is a French professional footballer who plays as a forward for Paris Saint-Germain (PSG) and the French national team.
Ultra-Right encompasses broader right-wing ideologies, focusing on nationalism, conservatism, and anti-immigration without necessarily adhering to fascist roots.
Neo-fascists often seek to mainstream their image, while ultra-right movements vary widely in intensity and focus on cultural and economic issues.
Key characteristics of Neofascism:
Ultra-nationalism: Extreme patriotism and loyalty to one’s country
Racial supremacy: Belief in the superiority of certain races over others
Populism: Appealing to the interests and concerns of ordinary people, especially against a perceived elite establishment
Authoritarianism: Favoring or enforcing strict obedience to authority at the expense of personal freedom
Nativism: Promoting the interests of native inhabitants against those of immigrants
Xenophobia: Intense or irrational dislike or fear of people from other countries
Opposition to liberal democracy: Rejecting the principles of liberal democracy such as individual rights, political pluralism and the rule of law
The spectre of the Ultra-Right and Neo-Fascism
Rise of the Ultra-Right in Europe: The ultra-right and neo-fascism are gaining significant traction across Europe. The recent European Union (EU) elections saw substantial gains for ultra-right parties, indicating a shift in political dynamics.
Impact on French Politics: Kylian Mbappé and Marcus Thuram’s comments highlight the concerns about the rise of extremist parties in France. Marine Le Pen’s National Rally (RN) party has seen increasing support, posing a challenge to traditional political structures. Emmanuel Macron called for a snap parliamentary election in response to RN’s success, hoping to rally moderate and progressive voters.
European Context: The spectre of nationalism and fascism is reminiscent of pre-World War II Europe. Timothy Garton Ash noted the irony of Europe celebrating liberation from fascism while facing a resurgence of similar ideologies.
Effect of the Growth of the Far Right Over the African and Asian Region
Anti-Immigration Sentiment: The far-right’s rise is partly driven by opposition to immigration from Africa and Asia. This sentiment is a legacy of colonialism and has been exacerbated by recent socio-economic challenges.
Integration Challenges: Prominent French footballers of African and Arab descent, like Kylian Mbappé and Karim Benzema, symbolize the integration issues within French society. Benzema’s quote, “If I score, I’m French… if I don’t, I’m an Arab,” underscores the conditional acceptance faced by immigrants and their descendants.
Policy Implications: Far-right governments may implement stricter immigration policies, affecting migrants and refugees from Africa and Asia. These policies could lead to increased xenophobia and social divisions.
How French Elections Could Turn Out to Be a Change Point in Both French and European History
Potential Shift in Political Power: The success of the RN in the French elections could signify a major shift in political power. If the RN wins the upcoming elections, it could lead to a reconfiguration of French politics, with far-reaching implications for Europe.
Influence on European Politics: A far-right victory in France could embolden similar movements across Europe. The trend seen in Italy, Sweden, Germany, Spain, and other countries suggests a broader European shift towards the far-right.
Long-Term Implications: The rise of the ultra-right could lead to significant changes in EU policies, particularly regarding immigration, national sovereignty, and international relations. Historical patterns suggest that while such political waves eventually stabilize, the impacts of this shift could be long-lasting and transformative for Europe.
Conclusion: Need to Implement policies to reduce socio-economic disparities, focusing on marginalized communities, and creating opportunities for employment, education, and social mobility. Invest in social welfare programs to alleviate poverty and economic insecurity, which are often exploited by far-right movements to garner support.
Mains PYQ:
Q ‘In the context of the neo-liberal paradigm of development planning, multi-level planning is expected to make operations cost-effective and remove many implementation blockages.” Discuss. (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Prelims level: British Parliamentary system
Mains level: Impact on India-UK relations
Why in the news?
Keir Starmer is poised to become the next Prime Minister of the UK, following Labour’s landmark victory securing a substantial majority.
Labour Party Comes to Power after 14 Years of Conservative Rule:
Electoral Outcome: Labour secures a decisive victory in the UK elections, winning 412 seats in the House of Commons, ending 14 years of Conservative governance.
Majority: Labour has achieved the largest majority in British politics since the early 20th century, with over 290 seats ahead of the Tories.
Voter Sentiment: The election reflects a strong anti-conservative sentiment rather than a resounding endorsement of Labour, with significant losses in Conservative strongholds.
Strategic Shifts: Labour’s success is attributed to strategic moves to appeal to rural and traditionally Conservative areas, contrasting with losses in urban and progressive strongholds.
Left and Right Streams in the UK:
Left Stream (Labour Party):
Traditionally advocates for social justice, welfare state policies, and government intervention in the economy to reduce inequality.Strong support from urban areas, progressive voters, trade unions, and historically marginalised groups such as minorities and low-income earners.
Under Keir Starmer, Labour has moved towards the centre, focusing on appealing to more rural and traditionally Conservative constituencies.
Right Stream (Conservative Party):
Favors free-market policies, limited government intervention, and emphasises individual responsibility and economic freedom. Strong support from affluent voters, business interests, rural communities, and traditionally conservative values such as patriotism and national sovereignty.
The Conservative Party has faced challenges with internal divisions over Brexit and criticism for austerity measures implemented during previous administrations.
Impact on India:
India-UK FTA: The Labour Party has maintained its commitment to completing the FTA, though the timelines will remain uncertain for some time. Key sticking points include India’s demand for greater access for its skilled professionals in the UK market and the UK’s push for lower import duties on goods like Scotch whisky and electric vehicles.
Defence and Security Cooperation: The India-UK defence and security partnership is likely to continue strengthening, building on recent momentum from the 2+2 mechanism and Defence Minister Rajnath Singh’s visit in early 2024. The UK is expected to maintain its support for a rules-based order and continue working with India to promote a “free and open Indo-Pacific”.
Visa Rules: India has been in talks with the UK for the past few years to relax visa rules for its citizens. With the Labour Party coming into power, there might be some uncertainty around the progress of these discussions.
Carbon Tax: While the FTA might reduce or eliminate tariffs, Indian exports could still face hefty carbon taxes, unlike UK exports to India. The Labour Party has always been in favour of imposing a carbon tax, which could impact Indian industries
Conclusion: India should leverage diplomatic channels to strengthen economic cooperation with the UK under Keir Starmer’s leadership. This could include negotiating bilateral trade agreements, promoting investment opportunities, and collaborating on emerging sectors like technology and renewable energy.
Mains question for practice:
Q Discuss the potential implications of Keir Starmer’s ascension to UK Prime Minister on India-UK relations. 10M
Prelims Only | Economics | Mains Paper 3: Inclusive Growth & Issues,Indian Economy,Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.,issues relating to planning, mobilization of resources
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Data related to Financial Inclusion
Mains level: Barriers to Financial Inclusion
Why in the News?
The RBI has highlighted that low labour force participation among women is a significant barrier to financial inclusion and broader economic growth.
It pointed out that only 7% of the outstanding loans to micro, small, and medium enterprises (MSMEs) are to women-led businesses.
Barriers to Financial Inclusion
Economic Participation: RBI emphasized that greater participation of women in economic activities is essential for financial inclusion and economic growth.
Participation Disparity: Official data shows female labor force participation at 32.8% in FY22, compared to over 77% for men.
Credit Disparity: Women-led businesses constitute nearly a fifth of MSMEs, yet they receive only 7% of the outstanding credit to this sector, highlighting a significant disparity.
Efforts and Challenges in Financial Inclusion
Successes: RBI expressed satisfaction with access to financial services, citing the success of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme and social security transfers.
Addressing Demand-side Issues: While supply-side challenges have been addressed, demand-side issues still need attention.
Structural Barriers: Structural issues such as low levels of capital, labour participation, societal norms restricting women from inheriting property, and limited access to education and training impede women’s financial inclusion.
Stereotyping and Behavioral Issues
Higher Risk Perception: Nigam noted that women borrowers often face stereotyping by financiers, being considered higher risks, leading to higher interest rates, greater insistence on collateral, or outright loan rejections.
Behavioural Challenges: He also mentioned behavioural issues among women borrowers, such as being more risk-averse, less confident in negotiating loan terms, and less likely to apply for new loans due to fear of rejection.
Policy Moves:Priority Sector Lending and Financial Literacy Initiatives
Priority Sector Lending (PSL): The PSL mandate has become a viable business model for banks and micro-lenders, but demand-side constraints persist.
RBI Initiatives: To address these challenges, the RBI has initiated financial inclusion efforts, including opening 2,400 financial literacy centres at the block level in partnership with nonprofits and requiring lead banks to have a literacy centre in each district.
Government Schemes:
Stand Up India Scheme
Mudra Yojana Scheme
Annapurna Scheme
Launched
April 2016
April 2015 (under PMMY)
–
Objective
To promote entrepreneurship among women and SC/ST
To provide financial support to non-corporate, non-farm small/micro enterprises
To support women entrepreneurs in the food catering business
Eligibility
Women entrepreneurs and SC/ST entrepreneurs above 18 years of age
All non-farm enterprises, including women-owned businesses
Women entrepreneurs planning to start or expand their food catering business
Loan Amount
INR 10 lakh to INR 1 crore
Up to INR 10 lakh, categorized into three types:
Shishu: Up to INR 50,000
Kishor: INR 50,001 to INR 5 lakh
Tarun: INR 5,00,001 to INR 10 lakh
Up to INR 50,000
Purpose
For setting up a greenfield enterprise in manufacturing, services, or trading sectors
For business activities in manufacturing, processing, trading, or service sectors
For starting or expanding the food catering business
Repayment Period
Up to 7 years with a maximum moratorium period of 18 months
–
36 months, including a grace period of 1 month
About SEHER Program (In News)
The Women Entrepreneurship Platform (WEP) and TransUnion CIBIL have launched SEHER, a pioneering credit education program aimed at empowering women entrepreneurs in India.
SEHER aims to facilitate their access to financial tools crucial for business growth and employment creation.
From UPSC perspective, the following things are important :
Prelims level: About SEHER Program
Mains level: NA
Why in the News?
The Women Entrepreneurship Platform (WEP) and TransUnion CIBIL have launched SEHER, a pioneering credit education program aimed at empowering women entrepreneurs in India.
About Women Entrepreneurship Platform (WEP)
WEP, incubated at NITI Aayogin 2018; aims to create an enabling ecosystem for women entrepreneurs in India through a public-private partnership.
WEP’s Financing Women Collaborative (FWC) initiative accelerates access to finance for women entrepreneurs, addressing key barriers such as information asymmetry.
About SEHER Program
SEHER aims to provide comprehensive financial literacy content and essential business skills to women entrepreneurs.
It will facilitate their access to financial tools crucial for business growth and employment creation.
The program includes personalized resources on financial literacy, emphasizing the importance of building a strong credit history and CIBIL score.
Need for such a program
India has 63 million MSMEs, with 20.5% being women-owned, employing 27 million people.
Accelerating women’s entrepreneurship could create over 30 million new women-owned enterprises and 150 to 170 million jobs.
PYQ:
[2019] “Empowering women is the key to control population growth”. Discuss.
From UPSC perspective, the following things are important :
Prelims level: About Leang Karampuang Cave
Mains level: Key features of the Cave Paintings
Why in the News?
A cave painting discovered in the limestone cave of Leang Karampuangon Sulawesi Island, Indonesia, dates back at least 51,200 years.
The painting features a scene with three part-human, part-animal figures interacting with a wild pig, depicted in red pigment.
Study Details:
Published in the journal Nature, the study titled ‘Narrative cave art in Indonesia by 51,200 years ago’ used a new dating technique to determine the age of the artwork.
The study involved 23 researchers from Griffith University, Southern Cross University, and the Indonesian National Research and Innovation Agency.
Use of Uranium-based Dating:
A new dating technique utilizes uranium series (U-series) analysis on calcite deposits above cave art.
The laser-based analysis measures uranium-thorium ratios to accurately date paintings, highlighting significant age revisions for cave art in Sulawesi.
About Leang Karampuang Cave
Leang Karampuang Cave is situated in the Maros-Pangkep karst region of South Sulawesi, Indonesia.
The cave is renowned for its ancient rock art and archaeological findings, providing insights into early human civilization in the region.
It features some of the oldest known hand stencils and paintings of animals, believed to be created by early humans.
Key features of the Cave Paintings:
A painted scene depicting humans interacting with a pig on the cave wall.
The artwork features a pig standing upright alongside three smaller human-like figures, all painted in a single shade of dark red pigment.
This painting predates the cave art found in El Castillo, Spain, dating back around 40,800 years ago, marking it as older than European cave paintings.
Significance of the Painting
According to researchers, the figures in the painting depict dynamic action, suggesting a narrative or story being told.
The discovery pushes back the origin of figurative art among Homo sapiens, indicating a rich history of storytelling through visual art in early human societies.
While Neanderthals began cave markings earlier, around 75,000 years ago, these were primarily non-figurative.
The Sulawesi cave art suggests an advanced cultural and artistic development among early humans, predating similar European art by millennia.
Contemporary Period in the Indian Subcontinent:
Homo sapiens had already migrated to various parts of the Indian subcontinent by this time.
Evidence suggests human habitation in India dates back to at least 70,000 years ago, with notable archaeological sites like Bhimbetka in Madhya Pradesh showing signs of early human activity and rock art.
PYQ:
[2017] The painting of Bodhisattva Padmapani is one of the most famous and oft-illustrated paintings at
From UPSC perspective, the following things are important :
Prelims level: What is Aphelion?
Mains level: Does aphelion affect temperatures on Earth?
Why in the News?
Early on July 5, the Earth reached aphelion, its farthest distance from the sun in our year-long journey around our nearest star.
What is Aphelion?
Aphelion is a term used in astronomy to denote the point in the orbit of a planet or celestial body where it is farthest from the Sun.
The Earth’s orbit around the Sun is not a perfect circle but rather an ellipse, with the Sun situated at one of the two foci of the ellipse.
Aphelion marks the moment when Earth is at its maximum distance from the Sun along this elliptical path.
The concept of aphelion was crucial in Johannes Kepler‘s formulation of his laws of planetary motion during the 17th century.
How far is the Earth from the Sun at aphelion?
At aphelion, which occurs around July 4th– 5th each year, the Earth is approximately 152.1 million kilometers (about 94.5 million miles) away from the Sun.
This distance is about 3.3% greater than its average distance from the Sun, known as its semi-major axis, which is about 147.1 million kilometers.
Does aphelion affect temperatures on Earth?
Aphelion has a slight effect on temperatures on Earth, but its impact is minimal compared to other factors such as axial tilt and atmospheric circulation patterns.
Despite being farther from the Sun during aphelion, the Earth’s tilt towards the Sun during the northern hemisphere’s summer results in warmer temperatures for that region.
This phenomenon is primarily responsible for the seasons on Earth.
What would happen if there were no aphelion?
If Earth’s orbit were perfectly circular, without aphelion or perihelion (the closest point to the Sun), the distance between Earth and the Sun would remain constant throughout the year.
This scenario would result in less variation in seasonal temperatures between the northern and southern hemispheres.
The distinct seasons that we experience today, which are essential for ecological diversity and agricultural cycles, would be significantly altered.
PYQ:
[2013] Variations in the length of daytime and night time from season to season are due to-
(a) The earth’s rotation on its axis
(b) The earth’s revolution round the sun in an elliptical manner
From UPSC perspective, the following things are important :
Prelims level: Geographical features of UK
Mains level: India UK Relation
Why in the news?
New Delhi and London have been engaged in negotiations for over two years to discuss a proposed free trade agreement (FTA) aimed at enhancing bilateral trade between the two nations.
What does the agreement could result?
Mutual Tariff Reductions: Both countries may agree to lower tariffs on a wide range of goods, including automobiles, textiles, alcoholic beverages, and medical instruments, facilitating increased trade flows.
Market Access: Improved market access could benefit industries in both countries, particularly India’s IT and services sectors, which are seeking expanded opportunities in the UK market.
Economic Growth: The FTA aims to stimulate economic growth by promoting trade and investment, potentially boosting employment and productivity in relevant sectors.
Political Relations: Strengthening economic ties could lead to closer political cooperation between India and the UK, influencing bilateral relations on international platforms.
Impact on Global Geopolitics and Indian Scenario
Global Trade Alliances: Strengthening economic ties between India and the UK could enhance their geopolitical influence, potentially shaping global trade alliances and partnerships in the Asia-Pacific region and beyond.
Diversification of Trade Partnerships: For India, the FTA represents a strategic move to diversify its trade partnerships beyond traditional allies, thereby reducing dependency and enhancing economic resilience.
Improve Bilateral Relations: Improved economic cooperation could foster closer political relations between India and the UK, influencing diplomatic engagements and collaboration on global issues such as climate change and security.
Regional Economic Impact: The agreement may spur economic growth in India, particularly benefiting sectors like IT and services, while also contributing to the UK’s post-Brexit economic strategy and trade diversification efforts.
Influence the Environmental and Regulatory Standards: Negotiations over environmental standards, including India’s concerns over carbon taxes and the UK’s climate goals, highlight the FTA’s potential to influence global environmental policies and regulatory frameworks.
India-UK Relation:
Strong historical ties: India and the UK share deep historical and cultural connections dating back to the colonial era. The UK has a large Indian diaspora of over 1.5 million people.
Strategic partnership: In 2004, India and the UK upgraded their relationship to a Strategic Partnership. This was further strengthened by the ‘2030 Roadmap for India-UK Future Relations’ agreed in 2021, which outlined cooperation across 5 pillars- people-to-people ties, trade, defence and security, climate change, and health.
Growing trade and investment: The UK is one of India’s major trading partners. Bilateral trade reached £38.1bn in the year to Q3 2023, making India the UK’s 12th largest trading partner. India is the 3rd largest foreign investor in the UK. Both countries are negotiating an India-UK Free Trade Agreement to further boost economic ties.
Cooperation in new frontiers: India and the UK are collaborating in emerging areas like fintech, green finance, cyber security, and critical technologies. They plan to hold the first Strategic Tech Dialogue to deepen cooperation in areas like semiconductors, 5G, and AI.
Shared global outlook: India and the UK have convergent views on many global issues and support a rules-based international order. The UK supports India’s permanent membership of the UN Security Council. They also cooperate closely on maritime security in the Indo-Pacific
Way forward:
Addressing Key Negotiation Points: Focus on resolving critical issues such as tariff reductions, market access for IT and services sectors, and alignment on environmental standards to expedite FTA conclusion.
Enhancing Strategic Partnerships: Strengthen bilateral economic and political cooperation through sustained dialogue and proactive engagement, aiming to maximize mutual benefits and ensure the long-term sustainability of the FTA.
Mains PYQ:
Q The judicial systems in India and the UK seem to be converging as well as diverging in recent times. Highlight the key points of convergence and divergence between the two nations in terms of their judicial practices. (UPSC IAS/2020)
From UPSC perspective, the following things are important :
Prelims level: Bordering countries of the USA and compare length of border
Mains level: American Revolution
Why in the news?
July 4 commemorates the 248th Independence Day of the United States, celebrating the signing of the Declaration of Independence, the foundational document that established the US as a union of states freed from British rule.
Why did the colonists want Independence from Britain?
Lack of Representation: Colonists were discontented with British policies that imposed taxes and laws without colonial representation in the British Parliament, which they viewed as unjust and oppressive.
Policy Shifts: After the French and Indian War, Britain ended its policy of salutary neglect and imposed stricter controls on the colonies, including prohibitions on westward expansion and new taxes through acts like the Stamp Act and Tea Act.
Ideas of Freedom: Influenced by Enlightenment ideals of liberty and equality, colonists began to articulate grievances against monarchical rule and asserted their natural rights to self-governance.
Resistance Movements: Events like the Boston Tea Party symbolized widespread resistance to British taxation and policies, galvanizing colonial unity and determination for independence.
Armed Conflict: The escalation from protests and boycotts to armed conflict (beginning in 1775) underscored the colonies’ resolve to break away from British control and establish their own governance.
What happened in the lead up to American independence?
Formation of Continental Congress: Colonists formed the Continental Congress to coordinate resistance efforts and explore avenues for negotiation with Britain, which ultimately failed due to British refusal to grant representation.
Boycotts and Protests: Colonists attempted economic boycotts of British goods and engaged in protests against oppressive British policies, marking a period of growing dissent and opposition.
Outbreak of War: By 1775, clashes between colonial militias and British troops erupted into open warfare, solidifying the shift from grievances to armed struggle for independence.
Declaration of Independence: The Continental Congress formally declared the colonies’ independence on July 2, 1776, followed by the adoption and signing of the Declaration of Independence on July 4, 1776.
Continental Army and Allies: The colonies secured military support and alliances, crucially from France, which helped sustain their war effort against British forces.
How was the Declaration of Independence formulated?
Committee of Five: A committee including Thomas Jefferson, John Adams, Benjamin Franklin, Roger Sherman, and Robert R. Livingston was appointed to draft the Declaration of Independence.
Thomas Jefferson’s Role: Jefferson, primarily responsible for drafting, drew on Enlightenment philosophy and his earlier writings to articulate the principles of natural rights and grievances against British tyranny.
Drafting Process: The committee reviewed Jefferson’s draft, incorporating edits and revisions suggested by Adams, Franklin, and others before presenting the final version to the Continental Congress.
Adoption and Signing: On July 4, 1776, the Continental Congress formally adopted the Declaration of Independence, which was signed by 56 delegates representing the thirteen colonies, solidifying their break from British rule.
Legacy of equality and rights as a foundation: The Declaration’s proclamation of equality and rights laid the foundation for American ideals of democracy and independence, shaping the course of American history and inspiring similar movements worldwide.
Conclusion: The Declaration of Independence, adopted on July 4, 1776, marked a pivotal moment as the American colonies asserted their sovereignty, based on Enlightenment ideals, igniting a global pursuit of liberty and democratic principles.
Mains PYQ:
Q American Revolution was an economic revolt against mercantilism. Substantiate. (UPSC IAS/2013)
From UPSC perspective, the following things are important :
Prelims level: JP Morgan index
Mains level: Benefits of Higher Inflows from the Inclusion of Indian Government Bonds in JP Morgan’s Emerging Markets Bond Indices
Why in the news?
JP Morgan is including Indian Government Bonds in its emerging markets bond indices starting June 28. This move is expected to attract significant foreign investment, boosting India’s bond market and economic stability.
What would be India’s weight in the index?
India is poised to achieve a maximum weighting of 10% in the GBI-EM Global Diversified Index. This increased allocation is anticipated to attract greater investment from global investors into Indian debt, with analysts projecting monthly inflows of $2-3 billion.
Benefits of Higher Inflows from the Inclusion of Indian Government Bonds in JP Morgan’s Emerging Markets Bond Indices
Increase in Foreign Exchange Reserves: The inflows from foreign investments will directly boost India’s foreign exchange reserves, providing a stronger buffer against external economic shocks.
Strengthening the Rupee: The surge in foreign investment will enhance demand for the rupee, leading to its appreciation and contributing to a more stable and robust currency.
Enhanced External Financial Management: With increased foreign exchange reserves, India will have greater flexibility and resilience in managing its external financial obligations and mitigating balance of payment issues.
Reduction in Borrowing Costs: Higher reserves and a stronger rupee can lead to improved credit ratings and reduced risk premiums, lowering borrowing costs for the government and corporates.
Promotion of Economic Confidence: The inflows signify international investor confidence in India’s economic prospects, boosting overall economic sentiment and encouraging further investments.
What about the impact on inflation as RBI mops up the dollars and releases an equivalent amount in rupees?
Liquidity Injection: When the RBI mops up dollars from the market, it releases an equivalent amount of rupees into the financial system. This injection of liquidity can potentially increase the supply of money circulating in the economy.
Demand-Pull Inflation: Increased liquidity can stimulate demand for goods and services, potentially leading to demand-pull inflation if the production capacity of the economy does not keep pace with the increased demand.
Asset Price Inflation: The influx of liquidity can also inflate asset prices such as real estate and stocks, impacting affordability and potentially creating asset price inflation.
Exchange Rate Stability: On the flip side, mopping up dollars can help stabilize the exchange rate by reducing downward pressure on the rupee due to excessive inflows.
RBI’s Policy Response: The RBI has various monetary policy tools, such as open market operations, repo rates, and reserve requirements, to manage liquidity and inflationary pressures arising from such inflows. It may use these tools to absorb excess liquidity and stabilize inflation.
Way forward:
Prudent Monetary Policy Management: The RBI should continue to employ effective monetary policy measures, such as open market operations and repo rate adjustments, to carefully manage liquidity and inflationary pressures stemming from increased foreign inflows.
Enhanced Economic Diversification: India should use the influx of foreign investment to diversify its economy further, focusing on infrastructure development, technological advancements, and sustainable growth initiatives to bolster long-term economic resilience and stability.
From UPSC perspective, the following things are important :
Prelims level: Observation by National Family Health Surveys (NFHS)
Mains level: Challenges faced by deprived section of the society
Why in the news?
India’s current population of 1.4 billion is projected to peak at 1.7 billion by 2064, then stabilize at 1.53 billion by 2100, as fertility rates decline below replacement level.
What does the United Nations speak on Indian demographics?
India overtook China as the world’s most populous country. UN estimates project India’s population to peak at 1.7 billion around 2064, then settle at 1.53 billion by 2100.
Population growth is slowing, with the total fertility rate dipping below the replacement level of 2.1.
What do the National Family Health Surveys (NFHS) observed recently?
Association with Education: There is a significant correlation between levels of education and unmet needs for family planning among married women in India, highlighting the importance of education in addressing reproductive health issues.
High Demand for Family Planning: There remains a notable demand for family planning services, particularly among young women aged 15-24, indicating ongoing challenges in meeting reproductive health needs effectively across different age groups.
Challenges faced by a deprived section of society
Limited Access to Family Planning Services: Women from disadvantaged backgrounds often face barriers in accessing contraceptives and family planning services due to social norms, lack of education, and cultural taboos surrounding contraception.
Teenage Pregnancies and Early Marriages: High rates of teenage pregnancies and early marriages contribute to health risks for young women, exacerbated by limited awareness about sexual and reproductive health rights and options.
Social Stigma and Cultural Norms: Deep-rooted societal attitudes and stigmas surrounding sexual activity, contraception, and abortion hinder open discussions and access to comprehensive sexual education and healthcare services, particularly for unmarried individuals.
What can India do to improve social conditions?
Enhancing Education and Awareness: Increase access to comprehensive sex education in schools and communities to empower young people with knowledge about contraception, family planning, and reproductive health rights.
Addressing Cultural Norms and Stigma: Challenge societal taboos and misconceptions surrounding contraception and sexual activity through culturally sensitive communication and advocacy efforts.
Expanding Healthcare Access: Ensure equitable access to affordable and quality healthcare services, including reproductive health services, particularly in rural and underserved areas.
Reforming Legal Frameworks: Reform laws and policies related to reproductive rights and access to safe abortion services to ensure women have autonomy over their reproductive decisions and can access safe and legal abortion services without unnecessary restrictions.
Steps taken by the government related to health:
Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY): This scheme aims to provide health coverage to over 500 million people, offering a cover of Rs. 5 lakh per family per year for secondary and tertiary care hospitalization. Over 4.68 crore cards have been issued under the scheme.
Comprehensive Primary Health Care (CPHC) through Ayushman Bharat-Health and Wellness Centres (HWCs): Launched in February 2018, this initiative aims to provide an expanded range of services closer to the community, including care for non-communicable diseases, palliative and rehabilitative care, oral, eye and ENT care, and mental health services.
Pradhan Mantri Swasthya Suraksha Yojana (PMSSY): This scheme, launched in 2003, aims to correct regional imbalances in the availability of affordable/reliable tertiary healthcare services and also to augment facilities for quality medical education in the country. Under this, new AIIMS are being set up and existing medical colleges are being upgraded
Way forward:
Integrated Approach to Education and Healthcare: Implement integrated programs that combine comprehensive sex education in schools with improved access to healthcare services, ensuring young people are empowered with knowledge and resources for reproductive health.
Community Engagement and Advocacy: Foster community dialogues and advocacy campaigns to challenge cultural norms and stigma around reproductive health, promoting open discussions and awareness-building initiatives across all demographics.
Mains PYQ:
Q Demographic Dividend in India will remain only theoretical unless our manpower becomes more educated, aware, skilled and creative.” What measures have been taken by the government to enhance the capacity of our population to be more productive and employable? (UPSC IAS/2016)
From UPSC perspective, the following things are important :
Prelims level: Initiative related to climate change
Mains level: Role of Federal Entities in Enhancing Climate Action
Why in the news?
The new government’s climate actions will impact all sectors, shaping India’s sustainable economic path, global leadership, and fight for climate finance and justice.
Initiatives Taken by the Indian Government in the Last Decade and Their Significant Results
International Solar Alliance (ISA): Promotes the widespread adoption of solar energy, enhancing global cooperation in renewable energy.
Coalition for Disaster Resilient Infrastructure (CDRI): Focuses on building resilient infrastructure to withstand climate-induced disasters.
Net-Zero by 2070: India’s commitment to achieve net-zero emissions by 2070 marks a significant shift towards absolute emission reductions.
Enhanced Nationally Determined Contributions (NDCs): Setting ambitious targets for reducing emissions intensity and increasing renewable energy capacity.
Indian Emissions Carbon Trading Scheme: Establishing a carbon trading system to incentivize emission reductions and support sustainable economic growth.
Significant Growth in Renewable Energy Capacity: Rapid expansion in solar and wind energy installations, contributing to India’s international non-fossil fuel energy targets.
Green Development Pact under G-20 Presidency: Integrating green development principles into global economic practices, showcasing India’s leadership in sustainable development.
How India can enhance it’s Global negotiations wrt Climate change?
Hosting International Climate Summits: India should aim to host a major international climate summit like the United Nations Conference of Parties (COP) in 2028. This would provide a platform to showcase its climate leadership and set ambitious global climate agendas. Successful hosting, akin to its G-20 Presidency, would strengthen India’s influence in global climate policy.
Advocacy and Consensus Building: India should start early to build consensus on critical climate issues, such as ending new investments in oil and gas post-2030 and securing significant commitments for adaptation finance. Proactively engaging in dialogues, forming alliances, and addressing concerns of other nations will help India lead negotiations and drive meaningful outcomes.
Promoting Equity and Climate Finance: India should continue to emphasize equity in climate action and finance in international forums. Advocating for fair treatment of developing countries and pushing for enhanced climate finance mechanisms will strengthen India’s position as a leader of the Global South.
Role of Federal Entities in Enhancing Climate Action
Collaboration on Long-Term Climate Strategies: Federal entities can work with state governments to develop and implement long-term climate and energy models. Examples include supporting states like Tamil Nadu and Bihar in crafting their net-zero plans.
Enhanced Coordination and Policy Alignment: Forming a Centre-State coordination group can ensure better synchronization of climate actions across states. This group can facilitate regular communication and policy alignment while respecting the autonomy of each state.
Financial Incentives through the Sixteenth Finance Commission: Federal entities can use financial mechanisms like the Finance Commission to incentivize states for their climate initiatives. This can include grants or additional funding for states that demonstrate significant progress in climate action.
Integration of Scientific Capabilities in Policymaking: Encouraging states to incorporate scientific modelling and data analysis into their climate policies. Federal support can enhance the technical capabilities of states, ensuring data-driven and effective climate strategies.
Consistent and Accurate Climate Data Management: Developing a unified MRV architecture at the state level to standardize data collection and reporting. This system can help track progress, ensure accountability, and facilitate better policy adjustments based on reliable data.
The Indian government has taken several initiatives to address climate change, but their effectiveness is still being evaluated:
National Action Plan on Climate Change (NAPCC): Launched in 2008, the NAPCC identified eight national missions to promote understanding of climate change, adaptation and mitigation, energy efficiency, and natural resource conservation. While these missions have led to some progress, such as the ambitious targets set under the National Solar Mission, their overall impact is still being assessed.
State Action Plans on Climate Change (SAPCCs): Under the NAPCC, states are required to develop their own action plans. As of 2022, 33 states and union territories have prepared their SAPCCs. However, the implementation and monitoring of these plans remain a challenge.
Climate change research and knowledge networks: The government has supported various research initiatives and knowledge networks to enhance understanding of climate change impacts and responses. These include the National Network Programmes on Climate Change Modelling, Aerosols, and Coastal Vulnerability. While these networks have generated valuable knowledge, their ability to inform policy and action is still being evaluated
Conclusion: India should expand its climate targets beyond the power sector to include other key areas such as transportation, industry, and agriculture. Clear and ambitious targets for zero-carbon two- and four-wheelers, as well as other sectors, will drive comprehensive decarbonization efforts.
Mains PYQ:
Q Explain the purpose of the Green Grid Initiative launched at World Leaders Summit of the COP26 UN Climate Change Conference in Glasgow in November 2021. When was this idea first floated in the International Solar Alliance (ISA)? (UPSC IAS/2021)
