Note4Students
From UPSC perspective, the following things are important :
Mains level: Balance of Payment;
Why in the News?
India’s ongoing trade deficit, where imports exceed exports, is often viewed as a sign of weakness in Indian manufacturing.
What is the nature of India’s trade deficit?
- Trade Deficit in Goods: As of October 2024, India recorded a merchandise trade deficit of $27.1 billion, which narrowed from $31.5 billion in the same month the previous year.
- Net Exporter of Services: India has established itself as a significant player in the global services market, with services exports constituting a substantial portion of its overall trade.
- In FY 2023-24, India’s services exports amounted to approximately $309 billion, contributing significantly to offsetting the goods trade deficit
- Foreign Capital Inflows: The trade deficit is often viewed positively as it correlates with India’s ability to attract foreign investment.
- For instance, India’s current account deficit was about 1.1% of GDP in June 2024, indicating that capital inflows are necessary to balance this outflow.
- Current Account Balance: The current account deficit (CAD) reached approximately $9.7 billion in the April-June 2024 quarter, reflecting the need for capital inflows to support economic growth and stability.
- India’s current account deficit has been maintained at around 2% of GDP, which is generally considered manageable within the context of its economic growth and investment strategies.
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Why do we hold reserves?
- Cushion Against Economic Shocks: Reserves are held as a safeguard against potential economic disruptions, such as sudden spikes in oil prices that could worsen the current account deficit.
- For Cost Management: While holding reserves incurs costs (e.g., lower returns on reserves compared to returns on foreign investments), they are essential for maintaining economic stability and investor confidence.
- Optimal Level of Reserves: India aims to maintain adequate reserves without excessive accumulation. This involves balancing the need for emergency funds against the costs associated with holding those reserves.
What are the Steps taken by the Government?
- Make in India Initiative: Launched in 2014, this initiative aims to boost domestic manufacturing by encouraging both foreign and domestic companies to manufacture their products in India.
- It focuses on sectors such as electronics, automobiles, and pharmaceuticals to increase production capabilities, reduce dependency on imports, and enhance export competitiveness.
- Production-Linked Incentive (PLI) Scheme: Introduced in 2020, the PLI scheme provides financial incentives to manufacturers across various sectors, including electronics, textiles, and pharmaceuticals.
- This program is designed to attract investments, promote local manufacturing, and increase exports by enhancing the global competitiveness of Indian products.
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What strategies can mitigate the effects of the trade deficit? (Way forward)
- Boosting Domestic Demand: Encouraging greater domestic consumption can help increase manufacturing output. Rising domestic demand can lead to higher production levels without necessarily increasing imports.
- Enhancing Export Competitiveness: Focusing on sectors where India has a comparative advantage, such as pharmaceuticals and automobiles, can help increase export volumes and reduce the trade deficit.
- Diversifying Import Sources: Reducing reliance on specific countries for imports (e.g., crude oil) by diversifying sources can help stabilize import costs and mitigate fluctuations in global prices.
- Investing in Manufacturing Capabilities: Strengthening domestic manufacturing through policies supporting local industries can reduce import dependency and enhance export capacity.
Mains PYQ:
Q Craze for gold in India has led to a surge in the import of gold in recent years and put pressure on the balance of payments and the external value of the rupee. In view of this, examine the merits of the Gold Monetization scheme. (UPSC IAS/2015)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Should packaged food content be labelled?
Why in the News?
A report by the Access to Nutrition Initiative (ATNi), a global non-profit, reveals that food and beverage companies generally sell less healthy products in low- and middle-income countries (LMICs) than in high-income countries (HICs).
What does the report published by the Access to Nutrition Initiative state?
- Lower Health Ratings in LMICs: The report assessed 52,414 products from 30 of the world’s largest food and beverage manufacturers. It found that products sold in LMICs had an average Health Star Rating (HSR) of 1.8, whereas those in HICs averaged 2.3. This indicates that the portfolios of these companies are less healthy in poorer markets.
- Healthier Product Sales: Only 30% of the assessed companies have a strategy to price their healthier products affordably for lower-income consumers. This lack of accessibility contributes to dietary issues in these regions.
- Micronutrient Data Availability: The report highlighted that micronutrient data were available for a smaller proportion of products in LMICs compared to HICs, complicating efforts to address nutritional deficiencies.
- Call for Action: The ATNi challenges companies to derive at least 50% of their sales from healthier products by 2030, a target that only a small fraction currently meets.
How does a Health Star rating system work?
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- The Health Star Rating (HSR) system is a front-of-pack labeling initiative that rates food products on a scale from 0.5 to 5 stars based on their nutritional profile.
- The rating is calculated by assessing:
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- Risk Nutrients: Total energy, saturated fat, sugars, and sodium.
- Positive Nutrients: Protein, fiber, fruits, vegetables, nuts, and legumes.
- A score above 3.5 stars is considered healthier, while lower scores indicate less healthy options. This system allows consumers to easily compare similar products and make informed dietary choices.
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Why have non-communicable diseases become so common in India?
Non-communicable diseases have become increasingly prevalent in India due to several factors:
- Dietary Shifts: There has been a significant increase in the consumption of highly processed foods that are high in sugars and fats, contributing to obesity and diabetes.
- According to the Indian Council of Medical Research (ICMR), unhealthy diets account for over 56% of the total disease burden in India.
- Affordability Issues: More than 50% of Indians cannot afford a healthy diet, exacerbating nutritional deficiencies alongside rising obesity rates.
- Lifestyle Changes: Reduced physical activity and urbanization have also played roles in this epidemic, leading to a dual burden of undernutrition and obesity.
Can front-of-pack labelling help?
Front-of-pack labeling could significantly influence consumer behavior and public health outcomes:
- Effectiveness of Warning Labels: Studies from countries like Chile and Mexico show that mandatory warning labels on sugary beverages have led to decreased consumption. This suggests that clear labeling can help consumers make healthier choices.
- Need for Mandatory Policies: Activists argue that voluntary measures taken by companies have been insufficient. They advocate for mandatory regulations on front-of-pack labeling to effectively communicate nutritional information related to high sugar, fat, and sodium content.
Conclusion: The Access to Nutrition Initiative report emphasizes the urgent need for healthier food portfolios in LMICs (Low- and Middle-Income Countries), equitable pricing, and front-of-pack labeling to combat non-communicable diseases. These steps align with SDG 3 (Good Health and Well-being), promoting healthier lives globally.
Mains PYQ:
Q Can the vicious cycle of gender inequality, poverty and malnutrition be broken through microfinancing of women SHGs? Explain with examples. (UPSC IAS/2021)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Air Pollution; Climate Change; Urbanization and it’s Challenges;
Why in the News?
The Central Pollution Control Board (CPCB) recorded an average AQI of 494 (Severe plus category) for Delhi where the different scales and methods explain the gap.
The Central Pollution Control Board (CPCB) recorded an average AQI of 494 (Severe plus category) for Delhi where the different scales and methods explain the gap.
A study by the Centre for Science and Environment reveals that:
- Vehicular emissions are the largest contributor to Delhi’s air pollution, accounting for 51.5% of the city’s pollution;
- Neighbouring districts add 34.97 %,
- Farm fires contribute 8.19%, and
- Dust particles make up 3.7 % of the total air pollution in the city.
What is the AQI Crisis in North India and What is the role of Climatic Conditions?
- Northern India, particularly Delhi, is currently facing a severe air quality crisis, characterized by record-breaking Air Quality Index (AQI) levels. The AQI in many areas has exceeded 500, categorizing it as “severe-plus,” which poses significant health risks and limits visibility due to thick smog.
- This year, despite a relatively pollution-free October and early November, the second week of November brought a sudden spike in toxic particulate matter, primarily PM2.5.
- Weather Patterns: Inversions and stagnant air conditions have contributed to the accumulation of pollutants. The presence of a thick pollution blanket at around 500 meters above ground level has been linked to adverse local impacts when combined with regional emissions from stubble burning and other sources.
- External Pollution Sources: The increase in pollution levels due to significant contributions from external sources, including emissions from nearby states like Punjab and Haryana.
What are the challenges in Monitoring AQI?
- Inconsistent Data Reporting: There is confusion regarding AQI readings, with some private agencies reporting values exceeding 1,000 while official figures cap at 500. This discrepancy arises from differences in how pollutant concentrations are converted to AQI values based on less stringent national guidelines compared to WHO standards.
- Dependence on External Data: India’s reliance on satellite data from NASA for monitoring fires and pollution limits its ability to independently assess air quality. There is a need for more localized monitoring using Indian satellites that can provide continuous coverage.
- Lack of Comprehensive Frameworks: Current monitoring systems do not adequately account for regional cooperation or comprehensive frameworks that address transboundary pollution issues effectively. This lack of coordination complicates efforts to manage air quality across state lines.
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Why does India need a sustainable and health-centric framework?
- Long-Term Strategies: Efforts must go beyond immediate fixes and focus on sustainable practices that consider the interconnectedness of air quality management and climate change adaptation. This includes integrating scientific research into policy-making and resource allocation.
- Public Health Prioritization: A health-centric approach should prioritize the well-being of citizens by implementing measures that reduce exposure to harmful pollutants, particularly for vulnerable populations such as children and the elderly.
- Multidisciplinary Solutions: Addressing air quality issues necessitates collaboration across various sectors, including transportation, urban planning, and public health. This multidisciplinary approach can foster innovative solutions tailored to local contexts while addressing broader climatic challenges.
Conclusion: Northern India’s AQI crisis highlights the urgent need for sustainable, health-centric air quality management. The government should address the pollution through multidisciplinary solutions aligned with SDG 3 (Good Health) and SDG 13 (Climate Action), ensuring healthier lives and climate-resilient communities for future generations.
Mains PYQ:
Q Describe the key points of the revised Global Air Quality Guidelines (AQGs) recently released by the World Health Organisation (WHO). How are these different from its last update in 2005? What changes in India’s National Clean Air Programme are required to achieve revised standards? (UPSC IAS/2021)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Coffee Board of India
Why in the News?
The Coffee Board of India has launched a 10-year roadmap with a goal to double the country’s coffee production and coffee exports by 2034.
About Coffee Board of India:
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Details |
| About |
• Coffee cultivation in India began with the planting of 7 seeds of coffee during 1600 AD by saint Baba Budan, in the courtyard of his hermitage in Chikmagalur, Karnataka.
• Until 1995, marketed the pooled supply of coffee.
• Post-1995, coffee marketing became a private-sector activity due to economic liberalisation. |
| Structural Mandate |
• Managed by the Ministry of Commerce and Industry, established in 1942, headquartered in Bangalore.
• Comprises 33 members, including a Chairman appointed by the Government of India. |
| Functions of Coffee Board |
• Enhancement of production, productivity & quality.
• Export promotion for achieving higher value returns for Indian Coffee.
• Supporting the development of the domestic market. |
| Coffee Industry in India – Imports/Exports |
• Karnataka is the largest producer (70%), followed by Kerala and Tamil Nadu.
• India exports over 70% of its coffee production.
• India is the 8th largest coffee exporter (FAO) globally (by volume).
• Coffee exports peak from March to June. |
| Agro-climatic Conditions |
• It is a tropical plant which is also grown in semi-tropical climate.
• 16° – 28°C temperature, 150-250cm rainfall and well-drained slopes are essential for its growth.
• Low temperature, frost, dry weather for a long time and harsh sunshine are harmful for its plant.
• Coffee plants grow better in the laterite soils of Karnataka in India.
• Major Varieties Cultivated: Arabica, Robusta and Liberica.
• Arabica has high market value than Robusta coffee due to its mild aromatic flavor. |
PYQ:
[2010] Though coffee and tea both are cultivated on hill slopes, there is some difference between them regarding their cultivation. In this context, consider the following statements:
- Coffee plant requires a hot and humid climate of tropical areas whereas tea can be cultivated in both tropical and subtropical areas.
- Coffee is propagated by seeds but tea is propagated by stem cuttings only.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Chancay Port Project, OBOR
Why in the News?
The Chancay Port was inaugurated in Peru by Chinese President Xi Jinping.
About Chancay Port Project:
- The Chancay Port Project was inaugurated in Peru as part of a new land-sea corridor linking China with Latin America.
- It is funded under Belt and Road Initiative (BRI), with a total cost of $3.6 billion.
- The port can accommodate vessels up to 18,000 TEUs (twenty-foot equivalent unit), the largest shipping vessels in the world.
- Ownership: 60% of the port is owned by China Ocean Shipping (Group) Company (COSCO), with the remaining stake held by a local company.
- It is expected to generate $4.5 billion annually for Peru, equivalent to 1.8% of the country’s GDP.
- Key Exports: The port will handle exports like copper, blueberries, soybeans, and lithium from the lithium triangle (Bolivia, Chile, and Argentina).
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Geo-strategic Location:
- Proximity to Lima: Located 78 km north of Lima, Peru’s capital, in the small fishing town of Chancay.
- Natural Deep-Water Port: Chancay is a natural deep-water port, ideal for accommodating large vessels.
- Trade Gateway: Positioned strategically to facilitate trade between South America and Asia, reducing transit time for goods between the two continents.
- Alternative to North America: It eliminates the need for Latin American exports to transit through ports in North America, offering a more direct route to Asia.
Why it is a concern for USA?
- Chinese Influence in Latin America: The US has traditionally viewed Latin America as its sphere of influence. The Chancay Port increases China’s economic and geopolitical presence in the region.
- Strategic Gateway for China: The port strengthens China’s access to critical resources in South America, including lithium and copper, raising concerns about China’s growing dominance in the region.
- US Trade Routes Disruption: The port reduces transportation time between Latin America and Asia, which could disrupt existing US trade routes and diminish its role as a trade facilitator.
PYQ:
[2017] What is the importance of developing Chabahar Port by India?
(a) India’s trade with African countries will enormously increase.
(b) India’s relations with oil-producing Arab countries will be strengthened.
(c) India will not depend on Pakistan for access to Afghanistan and Central Asia.
(d) Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ‘Bhu-Neer’ Portal, CGWA
Why in the News?
The ‘Bhu-Neer’ Portal was digitally launched by Minister of Jal Shakti, during the India Water Week 2024.
About the ‘Bhu-Neer’ Portal:
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Details |
| About |
• Centralized platform for managing groundwater withdrawal permits.
• Developed by the Central Ground Water Authority (CGWA) and National Informatics Centre (NIC).
• Aims to regulate groundwater usage across India efficiently, ensuring transparency and sustainability. |
| Features and Provisions |
• User-friendly interface with PAN-based single ID, NOC with QR code, and streamlined processes.
• Improved version compared to its predecessor, NOCAP.
• Ensures groundwater compliance and promotes sustainable practices. |
| Implementation |
• The portal is live and accessible for groundwater queries, tracking, and payments.
• Open to both project proponents and the general public for groundwater-related services. |
Back2Basics: Central Ground Water Authority (CGWA)
- It has the mandate of regulating groundwater development and management in the country.
- It is constituted under the Environment (Protection) Act of 1986.
- CGWA issues advisories, public notices and grant No Objection Certificates (NOC) for groundwater withdrawal.
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PYQ:
[2020] Consider the following statements:
1. 36% of India’s districts are classified as “overexploited” or “critical” by the Central Ground Water Authority (CGWA).
2. CGWA was formed under the Environment (Protection) Act.
3. India has the largest area under groundwater irrigation in the world.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1 and 3 only |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: High-Altitude Sickness
Why in the News?
The tragic death of a trekker scaling Garur Peak in Uttarakhand, underscores the dangers of high-altitude sickness in the Himalayas.
What is High-Altitude Sickness?
- Causes: High-altitude sickness, or Acute Mountain Sickness (AMS), occurs when the body struggles to acclimatise to elevations above 8,000 feet (2,400 metres) due to reduced oxygen levels.
- Symptoms: Early signs include headache, nausea, fatigue, and shortness of breath. If untreated, it may escalate to:
- High-Altitude Pulmonary Edema (HAPE): Fluid in the lungs, causing breathing difficulties.
- High-Altitude Cerebral Edema (HACE): Fluid in the brain, leading to confusion, hallucinations, and coma.
Prevention and Treatment
- To prevent AMS, experts recommend a slow ascent with rest days every 3-4 days above 3,000 meters and avoiding sleeping elevation increases of more than 500 meters per day.
- Medications:
- Acetazolamide: Aids acclimatisation.
- Dexamethasone: Reduces severe inflammation.
- Nifedipine: Prevents HAPE in high-risk individuals.
Note: Medications are not foolproof and are to be taken under medical guidance.
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