Note4Students
From UPSC perspective, the following things are important :
Mains level: India’s relation with major powers in the world;
Why in the News?
India’s participation in the sixth Quad Leaders’ Summit in Wilmington, Delaware, U.S., on September 21, 2024, has heightened expectations for strengthening security cooperation among the “four key maritime democracies in the Indo-Pacific.”
How can India navigate its relationships with major powers?
- Strategic Autonomy: India maintains a policy of non-alignment, balancing relations with both the U.S. and Russia. It is careful not to be drawn into formal alliances but seeks to leverage its partnerships for national interests.
- Quad vs. Russia: India’s engagement with the U.S.-led Quad strengthens its Indo-Pacific strategy, while its ties with Russia (a Quad opponent) focus on maintaining historical military and strategic benefits.
- Russia-China Dynamics: As Russia moves closer to China, India seeks to rebalance, ensuring its interests are not sidelined, particularly in the context of China’s growing influence in Asia and unresolved border disputes.
- U.S. Partnership: While deepening ties with the U.S., India is cautious about fully aligning with Washington’s agenda (for exports), especially regarding tensions with Russia.
What role does India play in Global Conflict Resolution?
- As a Peace facilitator: India is increasingly positioning itself as a peace facilitator, evidenced by the NSA (Ajit Dowal) of India’s outreach to Russia and France regarding the Ukraine conflict and peace plan.
- As a ‘Vishwa Bandhu’: India’s engagement with both Ukraine and Russia shows its willingness to serve as an interlocutor, navigating complex diplomatic terrains while pushing for dialogue in global conflicts.
- India’s attempts to mediate in conflicts like Ukraine emphasize its independent foreign policy, aiming to project itself as a “Vishwa Bandhu” (friend to the world).
What implications do Domestic Issues have on India’s Foreign Policy?
- Economic Dependencies: India’s reliance on Russian military equipment and discounted oil affects its stance on the Ukraine war, pushing for a more nuanced approach in balancing U.S. and Russian relations.
- Border Tensions with China: Domestic security concerns, such as the standoff at the LAC, influence India’s foreign policy decisions, especially in its cautious relationship with China despite economic interdependence.
- Public Opinion and Strategic Decisions: India’s foreign policy must account for domestic perceptions of global powers, balancing national security with economic growth and political stability in a complex international environment.
Way forward:
- Strengthen Strategic Autonomy: India should continue balancing its relationships with major powers by deepening economic and security ties with both the U.S. and Russia, while maintaining flexibility to protect its national interests, particularly in the Indo-Pacific and vis-à-vis China.
- Expand Peace Diplomacy: India can further leverage its role as a mediator in global conflicts, enhancing its international standing by promoting dialogue and peace initiatives.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sustainable Development;
Mains level: Issues associated with Urbanization; Sustainable development; High-performance building;
Why in the News?
Due to rapid urbanization, India is facing the challenge of exceeding global energy efficiency and carbon benchmarks. High-performance buildings (HPBs) offer resilient, adaptive, and self-sufficient designs, promoting healthier indoor environments and better air quality.
What are High-Performance Buildings (HPBs)?
- These are structures designed to achieve peak levels of energy efficiency, sustainability, and occupant comfort.
- They go beyond standard building practices by integrating advanced technologies and smart design strategies to minimize environmental impact, optimize resource use, and improve overall performance.
- For example, Unnati (Greater Noida) and Indira Paryavaran Bhawan (New Delhi) showcase smart designs like sun-optimized facades and advanced HVAC systems, reducing energy use.
Key features of HPBs include:
- Energy Efficiency: HPBs use cutting-edge technologies like energy-efficient HVAC systems, smart lighting controls, and advanced insulation to reduce energy consumption.
- Water Conservation: Techniques like greywater recycling and rainwater harvesting help HPBs minimize water usage.
- Sustainable Materials: HPBs use eco-friendly, durable materials to reduce their carbon footprint and increase building longevity.
- Site-Specific Design: HPBs leverage natural lighting, ventilation, and terrain-specific water management to enhance thermal efficiency and reduce energy demand.
- Building Management Systems (BMS): HPBs employ BMS to monitor real-time performance metrics such as energy usage, water consumption, and indoor air quality, ensuring continuous optimization of resources.
How can HPBs help Indian cities?
- Resource Efficiency: HPBs help reduce energy consumption and promote water conservation, addressing India’s resource scarcity and fluctuating energy markets.
- Urban Resilience: By being energy-efficient and self-sufficient, HPBs can help cities adapt to rising temperatures and urbanization pressures.
- Healthier Environments: HPBs enhance indoor air quality, thermal comfort, and occupant well-being through intelligent systems like air filtration, natural lighting, and smart temperature control.
- The strain on Infrastructure: HPBs can relieve pressure on public infrastructure by minimizing resource usage, making them crucial for fast-growing cities.
- Sustainable Growth: HPBs are key to driving India’s transition to a low-carbon economy, supporting sustainable urbanization, and enhancing property value through long-term cost savings.
Way Forward:
- Scaling Adoption of HPBs: Promote widespread implementation of HPBs through government incentives, regulations, and public-private partnerships, aligning with SDG Goal 11 (Sustainable Cities and Communities) to foster inclusive, safe, and resilient urban spaces.
- Innovation and Capacity Building: Encourage innovation in building technologies and workforce training to develop HPBs, contributing to SDG Goal 7 (Affordable and Clean Energy) by ensuring energy efficiency and reducing carbon emissions in cities.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Passive mutual fund;
Mains level: Liberalisation of mutual funds;
Why in the News?
On September 30, the Securities and Exchange Board of India (SEBI) launched the liberalized Mutual Funds Lite (MF Lite) framework specifically for passively managed schemes.
What is a Passive Mutual Fund?
- A Passive Mutual Fund is a type of investment fund that follows a market index, like Nifty50, trying to match its performance.
- They can be easily tracked, whereas, Active Mutual Funds need expert fund managers to actively monitor them and make investments in securities of their choice accordingly.
- Since there’s no need for constant research, analysis, or active trading the costs are lower.
|
Key highlights of the liberalized Mutual Funds Lite (MF Lite) framework:
- Separate Framework for Passive Funds: It is tailored for passively managed schemes, which are less risky and require minimal active management.
- Relaxed Entry Requirements: Lowered net worth requirement (₹35 crore), simplified criteria for sponsor eligibility (profitability, track record).
- Encouraging New Players: It provides easier entry for new AMCs (Asset management companies) and market players in the passive fund segment.
- Governance Flexibility: It has reduced oversight for trustees; operational responsibilities shifted to AMC boards, focusing on fees, expenses, and tracking error.
- Cost Efficiency Focus: It emphasizes on lowering Total Expense Ratio (TER) and minimizing tracking error for better returns.
- Simplified Disclosures: The Scheme Information Documents (SID) are simplified to focus on key metrics like benchmark index, TER, and tracking error.
- Risk Management: Audit committees of AMCs can handle risk management duties due to the lower risk profile of passive funds.
Why a Separate Framework for MF Lite is Needed?
- Lower Risk Profile: Passively managed funds are generally less risky because they track established benchmarks like BSE Sensex or Nifty50, reducing the need for active decision-making.
- Minimal Asset Manager Discretion: Unlike actively managed funds, asset managers of passive funds have limited discretion in asset allocation and investment objectives. They simply mirror the performance of the benchmark index.
- Inapplicability of Existing Regulations: The current framework is designed primarily for actively managed funds, which involve more risks and require more oversight. It is less suitable for passive funds, which operate with predefined, transparent rules.
- Cost-Effective Market Entry: To encourage new players and make the passive fund industry more competitive, SEBI introduced relaxed regulations regarding eligibility, net worth, and profitability.
What about risks and disclosures?
- Success depends on Total Expense Ratio (TER) and tracking error. Lower costs and minimal deviation from the benchmark are crucial for performance.
- Scheme Information Documents (SID) focus on key metrics like the benchmark name, TER, and tracking error, leaving out complex strategies.
- Risk management responsibilities are streamlined, allowing the audit committee of the AMC to handle oversight, reflecting the lower risks of passive funds.
Way forward:
- Enhance Investor Education: Develop targeted educational initiatives to inform retail investors about the benefits, risks, and operational aspects of passive mutual funds, fostering informed investment decisions.
- Ongoing Regulatory Evaluation: Establish a framework for periodic assessment and adaptation of the MF Lite regulations to ensure they remain effective and relevant, promoting competition while safeguarding investor interests.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rythu Bharosa Scheme
Why in the News?
After the completion of the loan waiver, the Telangana government will provide Rythu Bharosa assistance to support farmers further.
About the Rythu Bharosa Scheme:
|
Details |
| Scheme Name |
Rythu Bharosa Scheme (Farmer’s Investment Support Scheme – FISS) |
| Launch Year |
2018-19 Kharif season (Telangana Govt’s Navratna Scheme) |
| Objective |
To support the initial investment needs of farmers by providing financial aid for agriculture and horticulture crops. |
| Benefits |
₹5,000 per acre per season as a grant for input purchases, with no cap on the number of acres owned by farmers. |
| Eligibility |
- Farmers must be residents of Telangana.
- Must own agricultural land.
- Small and marginal farmers are eligible.
- Farmers cultivating land with Record of Forest Rights (ROFR) document (mainly from Scheduled Tribe communities).
|
| Ineligible Farmers |
- Commercial farmers.
- Farmers working on a rental contract or tenant farmers.
|
Significance of the move
- Financial Relief for Farmers: By waiving loans of up to ₹2 lakh per farmer, the scheme provides significant financial relief, helping farmers manage their debt and invest in future agricultural activities.
- Boost to Agricultural Sector: The waiver will enable farmers to focus on improving productivity and crop yields without the burden of debt, potentially boosting the state’s agricultural output.
- Reduction in Farmer Distress: This move will alleviate distress among farmers, especially those affected by unpredictable weather and fluctuating crop prices, reducing the risk of farm-related suicides and financial instability.
PYQ:
[2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
- Working capital for maintenance of farm assets
- Purchase of combine harvesters, tractors and mini trucks
- Consumption requirements of farm households
- Post-harvest expenses
- Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:
(a) 1, 2 and 5 only
(b) 1, 3 and 4 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4 and 5 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Central Electricity Regulatory Commission (CERC)
Why in the News?
India’s power regulator, the Central Electricity Regulatory Commission (CERC), has appointed a Single Member Bench to assess the challenges of a sudden surge in power demand.
Projected Power Demand for October 2024
- India’s projected peak power demand for October 2024 is 230 Gigawatts (GW).
- After factoring in Inter-State Transmission System (ISTS) losses, the demand is expected to rise to 232.2 GW.
- To meet this demand, an additional 12.60 GW of generation resources is required.
Concerns over Power System Operation:
- The steep rise in electricity demand, without enough generation sources, could pose a risk to power system operations.
- The Regional Load Despatch Centres (RLDCs) and State Load Despatch Centres (SLDCs) are responsible for conducting operational planning to manage this surge, especially due to seasonal variations.
|
About Central Electricity Regulatory Commission (CERC):
|
Details |
| Establishment |
It was constituted on July 24, 1998, under the Electricity Regulatory Commissions Act, 1998, and later brought under the Electricity Act, 2003. |
| Type |
Statutory body with quasi-judicial status under Section 76 of the Electricity Act, 2003. |
| Ministry |
Functions under the Ministry of Power, Government of India. |
| Primary Functions |
– Regulates tariffs of power generation companies (owned/controlled by the Government of India).
– Regulates interstate transmission tariffs.
– Issues licenses for interstate transmission and trading. |
| Key Role in Tariff Evolution |
– Introduced a Two-Part Tariff in 1992.
– Introduced Availability Based Tariff (ABT) in 2000 to improve grid stability. |
| Advisory Role |
– Contributes to National Electricity Policy and Tariff Policy.
– Promotes competition, efficiency, and investment in the electricity sector. |
| Licensing |
– Issues licenses for electricity transmission and interstate trading. |
| Grid Operation Standards |
Enforces standards under the Indian Electricity Grid Code (IEGC) to improve grid stability and power quality. |
| Dispute Resolution |
Adjudicates disputes involving power generation companies and transmission licensees. |
| Collaboration |
Signed a MoU with the U.S. Federal Energy Regulatory Commission (FERC) in 2009 for enhancing power market regulation and grid reliability. |
| First Chairman |
Mr. S.L. Rao (1998–2001). |
PYQ:
[2016] Which one of the following is the purpose of ‘UDAY’, a scheme of the Government?
(a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy
(b) Providing electricity to every household in the country by 2018
(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
(d) Providing for financial turnaround and revival of power distribution companies |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Academic Freedom Index (AFI)
Why in the News?
India has seen a sharp decline in Academic Freedom Index rankings over the past 10 years.
About the Academic Freedom Index (AFI):
|
Details |
| Released by |
Global Public Policy Institute (GPPi) in collaboration with Scholars at Risk (SAR) and V-Dem Institute (Varieties of Democracy)
Published as a part of a global time-series dataset (1900-2019) |
| Purpose |
To assess and quantify academic freedom across different countries |
| Score Range |
- 0 (complete repression) to 1 (full academic freedom)
- Scores based on expert surveys and institutional data
|
| Main Parameters |
- Freedom to Research and Teach
- Institutional Autonomy
- Freedom of Academic Exchange and Dissemination
- Campus Integrity
- Freedom of Expression for Academics
- Constitutional Protection of Academic Freedom
|
| Usage |
- Tracking academic freedom trends
- Influencing policy
- Advocating for academic liberty in different countries
|
| Annual Report |
Published as part of the “Free to Think” report series by Scholars at Risk |
India’s Performance:
- India’s academic freedom score dropped from 0.6 points in 2013 to just 0.2 points in 2023, marking a significant deterioration.
- The report categorizes India as “completely restricted”, the country’s lowest rank since the mid-1940s.
- This decline is attributed to many factors, including:
- Political Influence on Universities
- Limitations on Student Protests
Significance
- Impact on Democracy: The decline threatens democratic values, as universities, traditionally spaces for free thought and dissent, and are increasingly under political control, limiting student protests and academic expression.
- International Reputation: India’s shrinking academic freedom could harm its global standing, making it less attractive to international students, scholars, and research collaborations.
- Long-Term Effects on Education: The politicization of higher education may weaken innovation and critical thinking, hindering economic growth and the development of future leaders and policymakers.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SAARC Currency Swap Framework
Why in the News?
The RBI has announced a Currency Swap Agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework 2024-27.
India’s Financial Support to Maldives
- India will extend financial support to the Maldives, providing $400 million under the US Dollar/Euro Swap Window.
- Additionally, ₹30 billion (approximately $357 million) will be made available under the INR Swap Window.
- The Currency Swap Agreement will remain valid until June 18, 2027.
|
About SAARC Currency Swap Framework:
|
Details |
| Objective |
To provide short-term liquidity support to SAARC member countries during financial crises or instability. |
| Administered by |
Reserve Bank of India (RBI) |
| Launch Year |
2012 |
| Countries Involved |
All SAARC members: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. |
| Facility |
Swap arrangement in US Dollar, Euro, or Indian Rupee. |
| Interest Rate |
Based on the currency borrowed, includes a margin over international benchmark rates. |
| Purpose |
To address the balance of payment crises and provide financial stability. |
| Recent Users |
Sri Lanka, Maldives |
Maldives’ Debt Situation
- The Maldives’ debt is now estimated at 110% of its gross domestic product (GDP), with increasing risks of defaulting on its sukuk (Islamic bond).
- A failure to make payments would mark the world’s first default of an Islamic bond.
-
- Fitch Ratings estimates that the Maldives’ external debt obligations will reach $557 million by 2025 and exceed $1 billion by 2026.
- The country’s foreign reserves stood at just $437 million at the end of August, only enough to cover one-and-a-half months of imports.
- India provided a $50 million lifeline to the Maldives to help avoid this outcome.
- The Export-Import Bank of India is owed nearly $400 million, while the Export-Import Bank of China is owed about $530 million as of last year.
Significance of India’s Assistance
- Debt Relief: India’s financial aid, including a $50 million lifeline, would help the Maldives avoid debt default and stabilize its economy.
- Geopolitical Influence: With this, India can counter China’s influence in the Maldives, strengthening its strategic position in the Indian Ocean.
- Diplomatic Reset: India’s support strengthens diplomatic relations, aiding the Maldives in debt restructuring and global partnerships.
PYQ:
[2019] In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?
- The foreign currency earnings of India’s IT sector
- Increasing the government expenditure
- Remittances from Indians abroad
Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3 |
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