Note4Students
From UPSC perspective, the following things are important :
Prelims level: Strait of Hormuz
Mains level: Global strategic flashpoints
A US Navy warship fired a warning flare to wave off an Iranian speedboat coming straight at it during a tense encounter in the strategic Strait of Hormuz.
Why in news?
- The Strait of Hormuz, a narrow waterway in the Middle East marks the most sensitive transportation choke point for global oil supplies.
Strait of Hormuz
- The Strait of Hormuz is a narrow channel, approximately 30 miles wide at the narrowest point, between the Omani Musandam Peninsula and Iran.
- It connects the Persian Gulf to the Gulf of Oman.
- The Strait is deep and relatively free of maritime hazards.
- Its depth is greatest near the Musandam Peninsula and tapers as you move north toward the Iranian shore.
Why is it important?
- Oil tankers carrying crude from ports on the Persian Gulf must pass through the strait.
- Around 21 million barrels of oil a day flowed through it in 2018, equivalent to roughly a third of global seaborne oil trade and about 21% of global petroleum liquids consumption.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GSAP
Mains level: Paper 3- Communication gap between MPC and RBI
Context
Communication is a critical element of monetary policy. Yet there seems to be a gap between what the MPC says and what the RBI does.
About MPC
- The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and institutionalised framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth.
- Highest monetary policy-making body: By law, the Monetary Policy Committee is the highest monetary policy-making body in the land, tasked with deciding monetary policy changes at regular intervals.
- Composition: The MPC will have six members – the RBI Governor (Chairperson), the RBI Deputy Governor in charge of monetary policy, one official nominated by the RBI Board and the remaining three members would represent the Government of India.
- The MPC will be chaired by the Governor.
- Under the inflation targeting regime, the most important role in communication belongs to the MPC.
Communication with public
- Monetary policy changes are communicated through formal statements, with the discussions underlying these decisions also being published, so that the public can understand why the MPC decided the way that they did.
- Communication gap: Over the past few years, a communication gap seems to have opened up between what the MPC has been saying and what the RBI has been doing, thereby potentially eroding the credibility of the IT framework.
- Influencing inflation expectations: Communication is an important part of the ability of the central bank to influence inflation expectations.
Following are the ways which indicate the communication gap between the RBI and the MPC, with several implications for the credibility of the MPC.
1] Separate statements
- During the first few years of the inflation-targeting regime from 2016 to 2018, the process of communication worked quite well.
- On the days of policy announcements, the governor and his deputies would participate in a press conference.
- From 2019 onwards, however, things began to change.
- Governor’s separate statement: The RBI began to release a separate governor’s statement on the day of the monetary policy meeting, presenting an inflation outlook and even explaining the decision taken by the MPC.
- MPC statement: It has overlapped with the MPC statement; at times, it has seemed somewhat different.
- For example, following the June 8 Monetary Policy Review the MPC highlighted inflation concerns, and voted in favour of raising the policy repo rate.
- On the same day, a governor’s statement mentioned that the central bank will also remain focussed on the orderly completion of the government’s borrowing programme.
- Confusion: The issuance of two such different statements can lead to confusion, especially as lowering inflation and lowering government bond yields are contradictory policy objectives.
Why is communication so crucial? To influence inflation expectations!
- If the public believes the central bank is committed to keeping inflation under control, then it will act accordingly.
- Firms will moderate their price increases, fearing that large price rises will make them uncompetitive.
- Meanwhile, workers will accept moderate wage increases, while investors will accept low interest rates on their bond purchases.
- With everyone acting in this way, it will be easier for the central bank to ensure that inflation indeed remains low.
- Anchored inflation expectations: If inflation expectations are well anchored, then it becomes relatively easy for the central bank to ensure that inflation returns to the target level before too long.
2] Change in the Monetary Policy Corridor width during pandemic
- Deciding the repo rate: The most important task of the MPC, enshrined in the RBI Act (Amended), 2016 that introduced IT, is to decide the repo rate, since this has long been the lynchpin of India’s monetary policy framework.
- Ever since the early 2000s, policy had aimed to keep overnight money market rates in a corridor, with the lower bound established by the reverse repo rate and the upper bound by the repo rate.
- Since the width of this corridor was fixed, once the repo rate was decided, the reverse repo rate was automatically determined, and market overnight rates adjusted accordingly.
- During the Covid-19 pandemic, the RBI constantly adjusted the reverse repo rate even as the MPC kept the repo rate unchanged.
- As a result, the fixed width of the corridor was lost, and the MPC lost any role in determining interest rates.
3] Introduction of policy instruments outside the remit of MPC
- During pandemic, the RBI introduced a number of new policy instruments, again outside the remit of the MPC.
- GSAP: It brought in the GSAP programme through which it pre-commited to buying a certain amount of dated government bonds in order to control their yields.
- Variable reverse repo auctions: It then introduced variable reverse repo auctions, and more recently, replaced the reverse repo rate with the long-dormant standing deposit facility rate.
- The rationale for this was not explained in the MPC statement.
- All unconventional monetary policy announcements were kept outside the MPC statement.
- This raised the questions about the role of the committee in deciding monetary policy actions at a crucial time like the pandemic.
4] Intervention in the foreign exchange market
- The RBI has been intervening in the foreign exchange market to manage the rupee.
- Forex interventions by definition influence the domestic monetary base and inflation.
- Yet the MPC in its monetary policy statements does not discuss either the exchange rate dynamics or the forex interventions.
- Just as it does not discuss the RBI’s interventions in the bond market to lower the yields.
Way forward
- In its latest two statements, the MPC indicated that policy would now be focusing on bringing India’s inflation rate under control.
- Clear policy framework: If the RBI is going to be successful in this endeavour, the first step must be to close the communication gap, by reintroducing a simple and clear policy framework and restoring the central role of the MPC.
Conclusion
The net result of all these actions is a potential loss of both clarity and credibility. The communication gap will need to be closed in order for the RBI to become successful in bringing inflation back to its 4 per cent target level.
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Back2Basics: Monetary Policy Corridor
- The Corridor in the monetary policy of the RBI refers to the area between the reverse repo rate and the MSF rate.
- Reverse repo rate will be the lowest of the policy rates whereas Marginal Standing Facility is something like an upper ceiling with a higher rate than the repo rate.
- The MSF rate and reverse repo rate determine the corridor for the daily movement in the weighted average call money rate.
- As per the monetary policy of the RBI, ideally, the call rate should travel within the corridor showing a comfortable liquidity situation in the financial system and economy.
What is GSAP?
- The G-Sec Acquisition Programme (G-SAP) is basically an unconditional and a structured Open Market Operation (OMO), of a much larger scale and size.
- G-SAP is an OMO with a ‘distinct character’.
- The word ‘unconditional’ here connotes that RBI has committed upfront that it will buy G-Secs irrespective of the market sentiment.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- India-Sri Lanka relations and challenges
Context
The commonality between Sri Lanka and the southern parts of India remains a less-emphasised yet significant aspect of India-Sri Lanka relations.
Crisis in Sri Lanka and relief provided by India
- The present economic crisis in Sri Lanka has pushed it closer to India for immediate relief.
- India, as part of its ‘Neighbourhood First’ policy, has extended support to the people of Sri Lanka in the form of aid (close to $3.5 billion) to help secure Sri Lanka’s food, health and energy security by supplying it essential items such as food, medicines, fuel and kerosene.
- The latest in the series was the signing of an agreement on June 10 between the Government of Sri Lanka and the Export-Import Bank of India for a $55-million short term Line of Credit to facilitate the procurement of urea for paddy crop in the ongoing ‘Yala’ season.
- On its part, Tamil Nadu decided to provide aid of ₹123 crore, comprising 40,000 tonnes of rice, 137 types of life-saving drugs and 500 tonnes of milk powder.
Sri Lanka-India sub-regional context
- During his second term as Prime Minister, Mr. Wickremesinghe while delivering a lecture in Chennai, in August 2003, called for the development of the south India-Sri Lanka sub-region as a single market.
- Such a market would provide more opportunities for the economic growth of both countries.
- In 2016 he highlighted the fact that the five Indian southern States, with a total population of 250 million, had a combined gross state domestic product of nearly $450 billion; with the addition of Sri Lanka’s $80 billion GDP, the sub-region would have a $500 billion economy, having an aggregate population of around 270 million.
Challenges
- Possibility of greater economic collaboration: Whether this bonhomie can lead to greater economic collaboration between Sri Lanka and south India, not necessarily Tamil Nadu alone, given the historical baggage, is anybody’s guess.
- Baggage of history: Some sections of the Sinhalese still hold the view that India had been a threat to Sri Lanka and it can still be a threat to them.
- The manner in which the Rajapaksa regime unilaterally scrapped in February 2021 a tripartite agreement signed in 2019 with India and Japan for the development of Colombo’s East Container Terminal was a reflection of the historical baggage.
- This perception can be traced to history when Sri Lanka was invaded by rulers of south India who humbled the Sinhala kings.
- In the aftermath of the 1983 anti-Tamil pogrom, the support provided by the Indian government to Tamil rebels only strengthened this perception.
- Modest investment in Sri Lanka’s development: Despite India’s open willingness to take part in the development of Sri Lanka after the civil war, the scale of its involvement has been modest.
- Incomplete projects due to lack of political will: After the cancellation of the tripartite agreement, India was later provided with projects such as the West Container Terminal, the Trincomalee oil tank farm and a couple of renewable projects, there were several proposals that envisaged India’s participation but did not see the light of day.
- Another project, a collaboration between NTPC Limited and the Ceylon Electricity Board, was cancelled.
- Other projects too such as the development of the Kankesanthurai harbour and the expansion of the Palaly airport in Jaffna, both envisaging Indian participation, would have become a reality had there been show of political will from the other side.
- The project of building a sea bridge and tunnel, connecting Rameshwaram to Talaimannar, remains on paper.
Way forward
- Infrastructure development: Even now, there is enormous scope for collaboration between the two countries in the area of infrastructure development.
- Cross-border energy trade: The economic crisis has revived talk of linking Sri Lanka’s electricity grid with that of India.
- If this project takes off, the first point of interconnectivity on the Indian side will most likely be in Tamil Nadu.
- India has cross-border energy trade with Bangladesh, Nepal, Bhutan and Myanmar.
- Facilitating people-to-people interaction: The apprehension in the minds of sections of the Sinhalese majority about India being a threat can be dispelled only by facilitating greater people-to-people interaction, including pilgrimages by monks and other sections of Sri Lankan society to places of Buddhist importance not only in north India but also in the south (Andhra Pradesh).
Conclusion
Much more will have to be done but the opportunity created by the current circumstances should be utilised to bring Indian and Sri Lankan societies closer — a prerequisite to achieving an economic union between Sri Lanka and the southern States of India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS Plus
Mains level: Chinese push for expansion of BRICS
Chinese President Xi Jinping will host a virtual summit of the leaders of the BRICS countries. PM Modi is expected to join.
Why in news?
- China is keen for the grouping to explore expansion and include new developing country members.
- Under the “BRICS Plus” format, the forthcoming summit is also expected to be attended by leaders of invited emerging countries.
What is BRICS?
- BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
- The BRICS Leaders’ Summit has convened annually. It does not exist in form of an organization, but it is an annual summit between the supreme leaders of five nations.
Its inception
- On November 30, 2001, Jim O’Neill, a British economist who was then chairman of Goldman Sachs Asset Management, coined the term ‘BRIC’ to describe the four emerging economies of Brazil, Russia, India, and China.
- He made a case for BRIC on the basis of econometric analyses projecting that the four economies would individually and collectively occupy far greater economic space and become among the world’s largest economies in the next 50 years or so.
How it has formed?
- The grouping was formalized during the first meeting of BRIC Foreign Ministers on the margins of the UNGA in New York in September 2006.
- The first BRIC Summit took place in 2009 in the Russian Federation and focused on issues such as reform of the global financial architecture.
Who are the members?
- South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS. South Africa subsequently attended the Third BRICS Summit in Sanya, China, in March 2011.
- The Chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
- The importance of BRICS is self-evident: It represents 42% of the world’s population, 30% of the land area, 24% of global GDP and 16% of international trade.
- The five BRICS countries are also members of G-20.
Also read
[Burning Issue] BRICS and its relevance in today’s world
Back2Basics: BRICS Plus
- The BRICS outreach to Africa began at the last summit hosted by South Africa, in 2013. It has picked up momentum now but African leaders want more.
- They need big loans from the New Development Bank (NDB) for their infrastructure projects.
- China introduced the “BRICS Plus” format at the Xiamen summit last year by inviting a few countries from different regions.
- South Africa emulated it, arranging the attendance of top-level representation of five nations of its choice: Argentina, Jamaica, Turkey, Indonesia and Egypt.
- The precise role of “BRICS Plus” countries will take time to evolve but an immediate benefit is the immense opportunities it provides for networking among leaders.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Employment challenge
Context
The government has assured the creation of one million jobs over the next one-and-a-half years. This may be optimistic, but if it does materialise, the employment landscape will change dramatically.
Background
- What is the unemployment rate? Expressed in percentage, the unemployment rate is defined as the share of people who are without any job.
- Joblessness in the country essentially relates to educated young adults seeking jobs in the formal economy.
- The government recently announced it would recruit 10 lakh people in “mission mode” over the next one-and-a-half years.
- The announcement came at a time when the unemployment rate for youth (aged 15-29 years) in urban areas has been hovering at over 20 per cent for the last several quarters.
What is the employment situation in India today?
- If jobs are being created on a progressive basis, there will be an increase in income generation, which in turn, should spur consumption.
- Therefore, if consumption picks up – this can be indicated by the growth in the consumer goods segments — then one can be confident of jobs being created.
- What is the situation in India? Consumer durable goods have been registering negative or slightly positive growth for the last five years or so — this is a reflection of the purchasing power of the people that ultimately can be linked to job creation.
- There have been talks of start-up economy in the country and their achievements.
- Interestingly, it is a well-known fact that, globally, 80-85 per cent of start-ups fold up in the first couple of years mainly due to non-viable models that fail the scaling-up challenge.
- Therefore, while start-ups sound exciting, job creation at scale cannot be part of these experiments, unless there is an assured flow of funds.
Challenge in recruiting 10 lakh people
- It will be a really big task given that presently the central government offices house around 3.45 million personnel as per the budget for 2022-23.
- Short time frame: The first challenge is in recruiting such a large number in this short period of time considering that there are fairly lengthy processes involved in hiring people to government departments.
- Finding meaningful role: Hiring such a number is good for the country, but finding meaningful roles for them in various departments needs to be seriously examined.
- Quite clearly, plans need to be in place to provide work to this set of new employees.
- Increase in cost for the government: The third issue that would have to be kept in mind is the increase in cost for the government.
- As per the budget for 2022-23, the average outgo per employee was around Rs 12.20 lakh.
- Assuming the new set earns half of the existing average, the additional cost would be at least Rs 60,000 crore.
- The salary outlay for the year was Rs 4.22 lakh crore.
- These provisions would have to be made in subsequent budgets.
Conclusion
The overall unemployment picture looks complex today. While the government’s intent to add over a million jobs in the next 18 months is laudable, the task is audacious and challenging from both an administrative and financial point of view.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Job creation by the government
Context
The government recently announced that 10 lakh government jobs will be provided over the next 18 months on a “mission mode”.
Background
- The government recently announced it would recruit 10 lakh people in “mission mode” over the next one-and-a-half years.
- The announcement came at a time when the unemployment rate for youth (aged 15-29 years) in urban areas has been hovering at over 20 per cent for the last several quarters.
- According to the Quarterly Bulletin of Periodic Labour Force Survey (PLFS), the youth unemployment rate, according to current weekly status, stood at 20.8 per cent in urban areas during October-December 2021.
- The annual PLFS report too shows that the overall youth unemployment rate, according to usual status (ps+ss), was at 12.9 per cent — 18.5 per cent in urban areas and 10.7 per cent in rural areas — during July-June 2020-21.
Three takeaways from the announcement
- One, the creation of employment is indeed a problem and can no longer be hidden from the public discourse.
- Two, the private sector, especially modern sectors such as the service and manufacturing sectors, which are dominated by multinational companies, have not created many jobs.
- Even if the Information Technology sector or the modern gig economy have created jobs, these are either very high-skilled jobs or low-skilled ones.
- Three, the government in the Nehruvian scheme of development occupied an important place in the labour market.
- The government is now forced to step in as persistently rising inflation, unemployment and underemployment threaten to politically affect it.
Employment data and issues with it
- Government is at present relying on the Employees’ Provident Fund Organisation/National Pension System/Employees’ State Insurance Scheme registrations and exits as indicators of the formal labour market.
- This could be misleading as companies may be increasing registrations to cross the threshold to become eligible to fall under any of these.
- Formalisation: Hence, this might be more a case of formalisation rather than employment generation.
- Second, media reports show that more than 85% of those aspiring for those 10 lakh jobs could be consumed by existing vacancies in Central government departments (8,72,243).
- The decline in PSU jobs: Third, 241 central public sector enterprises (CPSEs) have been shedding jobs in recent years.
- The decline in quality of jobs: Even though the labour force and workforce participation rates have increased marginally, there is a decline in the quality of jobs, viz. there is a rise in the unpaid segment of the self-employed and a rise in the share of the agricultural sector in total employment over the last three Periodic Labour Force Surveys (43% to 47%).
Role of the private sector
- The private sector creates jobs in response to market forces and while taking into consideration radically altering technological developments.
- We cannot avoid placing the government at the centre of employment creation beyond a certain point.
- Projects in the modern private sector consume a lot of capital to generate very few jobs.
- For instance, recently, there was a report that the Adani Group has invested ₹70,000 crore (or ₹700 million) in Uttar Pradesh to create merely 30,000 jobs.
- Foreign Direct Investment, which at any rate is highly capital-intensive, goes mostly into the non-manufacturing sectors.
Way forward
- The government’s role in employment generation has entered into popular discourse and discussions on policy formation.
- The government should play a significant role soon.
- Government as principal employment generator: The government should re-establish its role as the principal employment generator through jobs in its ministries and CPSEs and through assured employment generation programmes like MGNREGA.
Conclusion
Employment is not merely about numbers and growth figures. We need to concentrate on enabling the creation of decent work and a sustainable labour market to which India is committed as a member of the United Nations and the International Labour Organization.
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From UPSC perspective, the following things are important :
Prelims level: Registration and de-registration of Political Parties, RP Act
Mains level: Read the attached story
The Election Commission has ordered the deletion of 111 registered unrecognized political parties that it found to be “non-existent” and referred three of the parties to the Department of Revenue for legal action for “serious financial impropriety”.
What is the news?
- The Representation of the People Act, 1951 provides ECI to register and de-register the political parties.
- This was the second such action in the recent past against registered parties that have been found violating the RP Act, 1951.
Registering a Political Party
- The registration of all political parties is governed by the provisions of the Representation of the People Act, 1951.
- According to the Election Commission (EC), any party seeking registration has to submit an application to the Commission within a period of 30 days.
- This is done as per guidelines prescribed by the EC in exercise of the powers conferred by Article 324 of the Constitution and Section 29A of the RP Act, 1951.
Note: There is no procedure available for de-registration of dormant political parties.
Process of registration
- The applicant is asked to publish a proposed party name in two national daily newspapers and two local daily newspapers, and provide two days for submitting objections, if any.
- The notice for publication is also displayed on the website of the Election Commission.
Why registering with the EC is important?
- It is not mandatory to register with the Election Commission.
- However, registering as a political party with the EC has its advantage in terms of intending to avail itself of the provisions of the RP Act, 1951.
- The candidates set up by a political party registered with the EC will get preference in the matter of allotment of free symbols vis-à-vis purely independent candidates.
- More importantly, these registered political parties, over course of time, can get recognition as a ‘state party’ or a ‘national party’.
How EC recognizes a political party as a state or national party?
For recognition as a NATIONAL PARTY, the conditions specified are:
- a 6% vote share in the last Assembly polls in each of any four states, as well as four seats in the last Lok Sabha polls; or
- 2% of all Lok Sabha seats in the last such election, with MPs elected from at least three states; or
- recognition as a state party in at least four states.
For recognition as a STATE PARTY, any one of five conditions needs to be satisfied:
- two seats plus a 6% vote share in the last Assembly election in that state; or
- one seat plus a 6% vote share in the last Lok Sabha election from that state; or
- 3% of the total Assembly seats or 3 seats, whichever is more; or
- one of every 25 Lok Sabha seats (or an equivalent fraction) from a state; or
- an 8% state-wide vote share in either the last Lok Sabha or the last Assembly polls.
Benefits for recognized parties
- This is subject to the fulfilment of the conditions prescribed by the Commission in the Election Symbols (Reservation and Allotment) Order, 1968.
(a) Reserved Symbol
- If a party is recognised as a ‘state party’, it is entitled for exclusive allotment of its reserved symbol to the candidates set up by it in the state in which it is so recognised. If a party is recognised as a ‘national party’ it is entitled for exclusive allotment of its reserved symbol to the candidates set up by it throughout India.
(b) Proposer for nomination
- Recognised ‘state’ and ‘national’ parties need only one proposer for filing the nomination.
(c) Campaigning benefits
- They are also entitled for two sets of electoral rolls free of cost and broadcast/telecast facilities over state-owned Akashvani/Doordarshan during the general elections.
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From UPSC perspective, the following things are important :
Prelims level: ‘Black Swan’ Event
Mains level: Read the attached story
A study by the Reserve Bank of India (RBI) has spoken about the possibility of capital outflows to the tune of $100 billion (around Rs 7,80,000 crore) from India in case of a major global risk scenario or a “black swan” event.
What is a ‘black swan’ event?
- A black swan is a rare, unpredictable event that comes as a surprise and has a significant impact on society or the world.
- These events are said to have three distinguishing characteristics –
- they are extremely rare and outside the realm of regular expectations
- they have a severe impact after they hit and
- they seem probable in hindsight when plausible explanations appear
When did the term originate?
- The black swan theory was put forward by author and investor Nassim Nicholas Taleb in 2001, and later popularised in his 2007 book – The Black Swan: The Impact of the Highly Improbable.
- It is described as one of the 12 most influential books since World War II.
- In his book, Taleb does not try to lay out a method to predict such events, but instead stresses on building “robustness” in systems and strategies to deal with black swan occurrences and withstand their impact.
Behind the metaphorical name
- The term itself is linked to the discovery of black swans.
- Europeans believed all swans to be white until 1697, when a Dutch explorer spotted the first black swan in Australia.
- The metaphor ‘black swan event’ is derived from this unprecedented spotting from the 17th century, and how it upended the West’s understanding of swans.
When have such events occurred in the past?
- Interestingly, Taleb’s book predated the 2008 global financial crisis – a black swan event triggered by a sudden crash in the booming housing market in the US.
- The fall of the Soviet Union, the terrorist attack in the US on September 11, 2001, also fall in the same category.
Is the Covid-19 pandemic a black swan event?
- Taleb does not agree with those who believe it to be one.
- Rather, he called it a “white swan”, arguing that it was predictable, and there was no excuse for companies and governments not to be prepared for something like this.
- While the outbreak of any pandemic is difficult to individually predict, the possibility of one occurring and having a major impact on systems around the world was known and documented.
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From UPSC perspective, the following things are important :
Prelims level: Single use plastics
Mains level: Need for plastic waste management
The Centre has banned the use of ‘single-use plastic’ from July 1.
What is the news?
- The Ministry for Environment, Forest and Climate Change had issued a gazette notification last year announcing the ban, and has now defined a list of items that will be banned from next month.
- The manufacture, import, stocking, distribution, sale and use of suc plastic, including polystyrene and expanded polystyrene, commodities shall be prohibited with effect from the 1st July, 2022.
What is Single-Use Plastic?
- As the name suggests, it refers to plastic items that are used once and discarded.
- Single-use plastic (SUP) has among the highest shares of plastic manufactured and used — from packaging of items, to bottles (shampoo, detergents, cosmetics), polythene bags, face masks, coffee cups, cling film, trash bags, food packaging etc.
- It accounts for a third of all plastic produced globally, with 98% manufactured from fossil fuels.
- SUP also accounts for the majority of plastic discarded – 130 million metric tonnes globally in 2019 all of which is burned, buried in landfills or discarded directly into the environment.
- On the current trajectory of production, it has been projected that single-use plastic could account for 5-10% of greenhouse gas emissions by 2050.
SUPs in India
- India features in the top 100 countries of single-use plastic waste generation – at rank 94 (the top three being Singapore, Australia and Oman).
- With domestic production of 11.8 million metric tonnes annually, and import of 2.9 MMT, India’s net generation of single-use plastic waste is 5.6 MMT, and per capita generation is 4 kg.
What are the items being banned?
- According to the Plastic Waste Management Rules, 2016, there is also a complete ban on sachets using plastic material for storing, packing or selling gutkha, tobacco and pan masala.
- The items on which the Central Pollution Control Board (CPCB) have announced a ban are earbuds; balloon sticks; candy and ice-cream sticks; cutlery items including plates, cups, glasses, forks, spoons, knives, PVC banners measuring under 100 microns among others.
- The Ministry had already banned polythene bags under 75 microns in September 2021, expanding the limit from the earlier 50 microns.
- From December, the ban will be extended to polythene bags under 120 microns.
- The ban is being introduced in phases to give manufacturers time to shift to thicker polythene bags that are easier to recycle.
- While manufacturers can use the same machine for 50- and 75-micron bags, the machinery will need to be upgraded for 120 microns.
Why these items?
- The choice for the first set of SUPs items for the ban was based on difficulty of collection, and therefore recycling.
- The enemy is not that plastic exists per se, but that plastic exists forever in the environment.
- When plastic remains in the environment for long periods of time and does not decay, it turns into microplastics – first entering our food sources and then the human body, and this is extremely harmful.
- These items are difficult to collect, especially since most are either small, or discarded directly into the environment – like ice-cream sticks.
- It then becomes difficult to collect for recycling, unlike the much larger items.
- The largest share of SUP is that of packaging – with as much as 95% of single use belong to this category – from toothpaste to shaving cream to frozen foods.
- The items chosen are of low value and of low turnover and are unlikely to have a big economic impact, which could be a contributing reason.
How will the ban be enforced?
- The ban will be monitored by the CPCB from the Centre, and by the State Pollution Control Boards (SPCBs) that will report to the Centre regularly.
- Directions have been issued at national, state and local levels — for example, to all petrochemical industries — to not supply raw materials to industries engaged in the banned items.
- Directions have also been issued to SPCBs and Pollution Control Committees to modify or revoke consent to operate issued under the Air/Water Act to industries engaged in SUP items.
- Last week, the CPCB issued one-time certificates to 200 manufacturers of compostable plastic and the BIS passed standards for biodegradable plastic.
What if violation occurs?
- Those found violating the ban can be penalised under the Environment Protection Act 1986 – which allows for imprisonment up to 5 years, or a penalty up to Rs 1 lakh, or both.
- Violators can also be asked to pay Environmental Damage Compensation by the SPCB.
- In addition, there are municipal laws on plastic waste, with their own penal codes.
How are other countries dealing with single-use plastic?
- Bangladesh became the first country to ban thin plastic bags in 2002.
- New Zealand became the latest country to ban plastic bags in July 2019.
- China issued a ban on plastic bags in 2020 with phased implementation.
- As of July 2019, 68 countries have plastic bag bans with varying degrees of enforcement.
- Vanuatu and Seychelles have banned plastic straws outright.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Banks Board Bureau (BBB)
Mains level: Not Much
The Union Finance Ministry is working to expand and relaunch the Banks Board Bureau (BBB) by bringing in more representatives from the insurance sector.
What is Banks Board Bureau (BBB)?
- Banks Board Bureau (BBB) is an autonomous body to Promote excellence in Corporate Governance in Public Sector Financial Institutions.
- The BBB works as step towards governance reforms in Public Sector Banks (PSBs) as recommended by J. Nayak Committee.
- It was formed in 2016 to select executive directors, and managing directors and chief executives of state-run banks.
- It is tasked to search and select personages for Board of Public Sector Banks, Public Sector Financial Institutions and Public Sector Insurance Companies and recommend measures to improve Corporate Governance in these Institutions.
- It has been selecting directors and chairmen and managing directors of PSU general insurance companies since 2018.
Its establishment
- The Central Government notified the amendment to the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1980.
- It provided the legal framework for composition and functions of the Banks Board Bureau on March 23, 2016.
- The Bureau accordingly started functioning from April 01, 2016 as an autonomous recommendatory body.
Functions of BBB
The mandate of the Bureau is to advise the Central Government on –
- Selection and appointment of Board of Directors in Nationalised Banks, Financial Institutions and Public Sector Insurance Companies (Whole Time Directors and Chairman)
- Matters relating to appointments, confirmation or extension of tenure and termination of services of the Directors of mandated institutions
- Desired management structure of mandated institutions, at the level of Board of Directors and senior management
- Suitable performance appraisal system for mandated institutions
- Formulation and enforcement of a code of conduct and ethics for managerial personnel in mandated institutions
- To build a data bank containing data relating to the performance of mandated institutions and its officers
- Evolving suitable training and development programs for managerial personnel in mandated institutions
- To help the banks in terms of developing business strategies and capital raising plan and the like;
- Any other work assigned by the Government in consultation with RBI
Why such move?
- The revamp is, in part, pushed by a Delhi High Court order last year.
- It observed that the bureau was not a competent body to recommend appointments at PSU general insurers.
- It held that circulars enabling BBB to select general managers and directors of PSU insurers were not legally valid.
Reasons behind the revamp
- FM aims to legally empower the body to recommend candidates for public sector insurers, and accelerate top-level hiring at all state-run financial institutions.
- The ministry plans to identify new members, restructure the bureau, and refer the new names to the appointments committee of the cabinet (ACC) in a couple of months.
- The revamped BBB may also get a new name to indicate its remit over a wider set of financial institutions.
Significance
- A revamp of the BBB will enable it to recommend full-time appointments at financial institutions where the current executives are given additional charge through interim arrangements.
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From UPSC perspective, the following things are important :
Prelims level: Lightening and Thunderstorms
Mains level: Disaster management
At least 70 people died in lightning strikes across Uttar Pradesh, Madhya Pradesh and Rajasthan.
What is lightning?
- Scientifically, lightning is a rapid and massive discharge of electricity in the atmosphere some of which is directed towards earth.
- The discharges are generated in giant moisture-bearing clouds that are 10-12 km tall.
- The base of these clouds typically lie within 1-2 km of the Earth’s surface, while the top is 12-13 km away.
- Temperatures in the top of these clouds are in the range of –35° to –45°C.
Its formation
- As water vapour moves upward in the cloud, the falling temperature causes it to condense.
- As they move to temperatures below 0°C, the water droplets change into small ice crystals.
- They continue to move up, gathering mass until they are so heavy that they start to fall to Earth.
- This leads to a system in which, simultaneously, smaller ice crystals are moving up and bigger crystals are coming down.
- Collisions follow and trigger the release of electrons, a process that is very similar to the generation of sparks of electricity.
- As the moving free electrons cause more collisions and more electrons, a chain reaction ensues.
- This process results in a situation in which the top layer of the cloud gets positively charged, while the middle layer is negatively charged.
- The electrical potential difference between the two layers is huge, of the order of a billion to 10 billion volts.
- In very little time, a massive current, of the order of 100,000 to a million amperes, starts to flow between the layers.
Types of lightning
- Broadly, there are three forms of lightning:
- Inter-cloud
- Intra-cloud
- Cloud-to-ground
- It is the cloud-to-ground form of lightning that kills humans, as well as animals and livestock, and can substantially damage property.
- While the Earth is a good conductor of electricity, it is electrically neutral.
- However, in comparison to the middle layer of the cloud, it becomes positively charged.
- As a result, about 15%-20% of the current gets directed towards the Earth as well.
- It is this flow of current that results in damage to life and property on Earth.
How intensely does it strike?
- A typical lightning flash is about 300 million volts and 30,000 amps.
- To put it in perspective, household current is 120 volts and 15 amps.
- A flash of lightning is enough to light a 100-watt incandescent bulb for about three months.
Why does lightning kill so many people in India?
- The reason for the high number of deaths is due to people being caught unawares and more than 70% of fatalities happened due to people standing under isolated tall trees.
- About 25 per cent of the people were struck in the open.
- Also, lightning is the direct promulgation of climate change extremities.
Mitigating lightning incidents
- Lightning is not classified as a natural disaster in India.
- But recent efforts have resulted in the setting up of an early warning system that is already saving many lives.
- More than 96% of lightning deaths happen in rural areas.
- As such, most of the mitigation and public awareness programmes need to focus on these communities.
- Lightning protection devices are fairly unsophisticated and low-cost. Yet, their deployment in the rural areas, as of now, is extremely low.
- States are being encouraged to prepare and implement lightning action plans, on the lines of heat action plans.
- An international centre for excellence on lightning research to boost detection and early warning systems is also in the process of being set up.
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From UPSC perspective, the following things are important :
Prelims level: Central vista project
Mains level: New parliament building
The Central Vista Avenue is set to open in the next few days after remaining closed to the public since February 2021 for redevelopment.
Central Vista Project
- The project aims to renovate and redevelop 86 acres of land in Lutyens’s Delhi.
- In this, the landmark structures of the government, including Parliament House, Rashtrapati Bhavan, India Gate, North Block and South Block, etc. stand.
- This dream project of redeveloping the nation’s administrative heart was announced by the Ministry of Housing and Urban Affairs back in September 13, 2019.
This project has three main parts:
- New parliament building
- New secretariat complex to bring all the central govt ministries in one place
- Development of the Rajghat and the area around it
- This project will involve demolition of some non-heritage buildings in the area, and construction of new buildings in place of them.
Why need this Project?
The most significant aspect of the project is the construction of a new parliament building. There are several reasons for needing a new building.
- Pre Independence building: The current one was built in 1927to house the legislative council and was not intended to house a bicameral legislature that the country has today.
- Lack of Space: The current building will be under more stress when the number of seats to Lok Sabha and Rajya Sabha are raised. Both Houses are already packed and members have to sit on plastic chairs when joint sessions are held, diminishing the dignity of the House.
- Safety Concerns: The existing building does not conform to fire safety norms. Water and sewer lines are also haphazard and this is damaging its heritage nature. Security concerns in the wake of the 2001 Parliament attack shows its vulnerable nature. It is also not quake-proof.
- Cost Advantage: Many central ministries are housed in different buildings with the result that the government ends up paying rent for many of them. The new building, a new central secretariat will help avoid this.
- Environmental Benefits: The fact that people and officials have to run around the city to go to different ministries also increases traffic and pollution. The project also proposes interlinking of metro stations which will minimise use of vehicles.
Due to these reasons, a pressing need was felt to construct a new parliament building.
Significance of the project
- Modernising parliament’s facilities: The new Parliament building will be India’s first purpose-designed parliament, equipped with state-of-the-art infrastructure to meet all needs of an expanded parliament.
- Improving productivity and efficiency: All ministries of the government will be consolidated in one place and will be served by highly energy-efficient and sustainable infrastructure.
- Strengthening cultural and recreational facilities: The National Museum will be relocated and conceptualized to present the rich heritage and achievements of the nation.
- Providing modern and secure infrastructure: A modern, secure, and appropriately equipped executive enclave is proposed to house executive offices and facilities.
- Providing residential facilities for the PM: Modern and secure residential facilities for the vice president and the PM are proposed to the north of North Block and south of South Block respectively.
- Cultural significance: The overall objective of works planned on the Central Vista is to ensure environmental sustainability, restore the vista’s architectural character, protect its heritage buildings, expand and improve public space, and to extend its axis.
Criticism
- The Opposition, environmentalists, architects and citizens have raised many concerns even before the pandemic brought in extra issues.
- They have questioned the lack of studies to ascertain the need for the project and its impact on the environment, traffic and pollution.
- Several key approvals for the proposed Parliament building have been pushed during the lockdown. This led to allegations of a lack of transparency.
- They argue that in the situation created by the pandemic, the project must be deferred as the country can’t afford it at this time.
Back2Basics: Making of New Delhi
- The Central Vista was designed by Edwin Lutyens and Herbert Baker, to house the capital of British India.
- The top of the Raisina Hill and adjacent hills in the area was flattened to create space for the buildings.
- At his coronation as Emperor of India on December 12, 1911, Britain’s King George V announced the transfer of the seat of the Government from Calcutta to the ancient Capital of Delhi.
- Thereafter, a 20-year-long project to build modern New Delhi was spearheaded by architects Edwin Lutyens and Herbert Baker.
- They built Parliament House, Rashtrapati Bhavan, North and South Blocks, Rajpath, India Gate, National Archives and the princes’ houses around India Gate.
- Thus, New Delhi was unveiled in 1931.
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From UPSC perspective, the following things are important :
Prelims level: Agnipath scheme
Mains level: Paper 3-Agnipath Scheme
Context
All major powers undertake a periodic (every 4-5 years) review of their evolving national security objectives. The government of India, on the other hand, has neglected to undertake any such exercise, in the past 75 years.
India’s defence budget for FY 2022-23
- In 2022-23, the Ministry of Defence has been allocated Rs 5,25,166 crore.
- This includes expenditure on salaries of armed forces and
civilians, pensions, modernisation of armed forces, production establishments, maintenance, and research and development organisations.
- According to the Stockholm International Peace
Research Institute (SIPRI), India was the third largest defence spender in absolute terms in 2020
after USA and China.
- In the last decade (2012-13 to 2022-23), the budget of the Ministry of Defence has grown at an annual average rate of 8.6%, while total government expenditure has grown at 10.8%.
- Defence expenditure as a percentage of GDP declined from 2.3% in 2012-13 to 2% in 2022-23.
Neglect of defence expenditure in India
- Defence expenditure as non-plan expenditure: Independent India saw defence expenditure being relegated to the “non-plan” category, within the ambit of a Soviet-inspired, central economy.
- Pension bill linked to defence budget: In another anomaly, the pension bill of veteran soldiers — a separate charge on the exchequer — was linked to the defence budget.
- Neglect of modernisation needs: And the growing pension bill was given as an excuse for the dwindling funds available for force-enhancement and hardware replacement/modernisation.
- As a result, the finance ministry, instead of finding ways and means of raising essential, additional funds for national defence demanded that they evolve measures for reducing the pension bill.
Two issues with our national security approach
1] Lack of periodic review
- Every nation faces the eternal “guns vs butter” dilemma.
- Periodic review: All major powers undertake a periodic (every 4-5 years) review of their evolving national security objectives, the options available, and the economic/military means available for achieving them.
- Apart from providing fiscal guidance, this process also facilitates the evolution of a national security strategy.
- China, has, since 2002, been issuing, with unfailing regularity, a biennial “Defence White Paper”, which encapsulates all of the foregoing, and is available on the Internet; for the information of foes and friends, alike.
- The government of India, on the other hand, has neglected to undertake any such exercise, in the past 75 years.
- India is amongst the few major powers which has failed to issue a National Security Strategy or Doctrine.
2] Lack of organisation reforms
- A second fact that we need to face is that our armed forces have remained in a Second World War time-warp, as far as their organisation and doctrines are concerned.
- Lack of political will and internal resistance: Attempts at organisational reform have come to naught due to lack of political will as well as internal resistance from the services; with the constitution of a Chief of Defence Staff and creation of a Department of Military Affairs providing the latest examples.
Way forward
- Given the transformed nature of warfare, down-sizing of the Indian army, by substituting manpower with smart technology and innovative tactics, has become an imperative need.
Agnipath Scheme
- Recently announced Agnipath scheme provides for the recruitment of youths in the age bracket of 17-and-half to 21 years for only four years with a provision to retain 25 per cent of them for 15 more years.
- Later, the government extended the upper age limit to 23 years for recruitment in 2022.
- The personnel to be recruited under the new scheme will be known as Agniveers.
Suggestions for Agneepath Scheme
- 1] Not the best time to introduce reform: Given the parlous security situation, on the country’s northern and western borders as well as the ongoing domestic turbulence, this is not the best time to cast the armed forces — already short of manpower — into turmoil, with a radical and untried new recruitment system.
- 2] The scheme is suitable for the army only: Such a scheme, in its present form, is suitable only for the army, whose large infantry component is not excessively burdened with technology.
- In case of the navy and air force, at least 5-6 years are required before a new entrant can acquire enough hands-on experience to be entrusted with the operation or maintenance of lethal weapon systems and complex machinery and electronics.
- 3] Trial before implementation: A radical change of this nature should have been subjected to a trial before service-wide implementation.
- Ideally, a few units of the regular or Territorial Army could have been earmarked as a testing ground, and feed-back obtained.
- 4] Legal backing to post-demobilisation employment: Experience of the past has shown that the home ministry has resisted induction of ex-servicemen into the armed-police and para-military forces, on the grounds that it would spoil the career path of their own cadres.
- Neglect by the state government: Similarly, state governments and other agencies have blatantly ignored the reservations mandated for ESM.
- Therefore, if the Agnipath scheme has to offer a meaningful promise of post-demobilisation employment or education, this must be mandated by an Act of Parliament, on the lines of the “GI Bill” enacted by the US Congress.
Conclusion
A scheme on the lines of Agnipath, appropriately constituted, and focused on enhancing “combat effectiveness” rather than “effecting savings” or “generating employment,” could have triggered a reformative process. But the above given caveats need to be borne in mind in this context.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: West Seti Hydel Project
Mains level: India -Nepal Power Relations
India will be taking over an ambitious hydropower project in Nepal — West Seti — nearly four years after China withdrew from it, ending a six-year engagement between 2012 and 2018.
What is West Seti Hydel Project?
- The West Seti Dam is a proposed 750-megawatt (MW) hydroelectric dam on the Seti River in the Far-Western Development Region of Nepal.
- Particularly, it is a storage scheme designed to generate and export large quantities of electrical energy to India.
- The project is envisaged to provide Nepal 31.9% electricity free.
- Besides, locals affected by the project are being given a share of Nepali Rs 10 million plus 30 units of electricity per month free.
Why in news now?
- The project was earlier accorded to a Chinese company.
- But Nepal feared that India won’t buy power from China-executed projects.
Significance: India -Nepal Power Relations
- Nepal is rich in power sources with around 6,000 rivers and an estimated potential for 83,000 MW.
- India has formally approached Nepal on many occasions, seeking preferential rights over Nepali waters should it match offers coming from elsewhere.
- India is viewed as a feasible power market for Nepal.
- India has undertaken to harness or expressed intent to harness major rivers in the north.
Issues in project execution
- There has been some uncertainty in Nepal over India’s inability to deliver projects on time.
- An ambitious Mahakali treaty was signed back in 1996, to produce 6,480 MW, but India has still not been able to come out with the Detailed project Report.
- The Upper Karnali project, for which the multinational GMR signed the contract, has made no headway for years.
- Major reasons for stalling of these projects was a lack of consensus over power purchase agreement with India.
- Also, seismic sensitivity of the Himalayan Region is the prime consideration.
What has helped build faith recently?
- India under PM Modi has been successful in executing the 900-MW Arun Three Project in eastern Nepal’s Sankhuwa Sabha.
- After a standoff between Nepal and India led to the economic blockade of 2015, equations changed after Deuba took over last July, replacing Oli.
Benefits for Nepal
- Nepal has a massive power shortfall as it generates only around 900 MW against an installed capacity of nearly 2,000 MW.
- Although it is currently selling 364 MW power to India, it has over the years importing from India.
Hurdles from Nepal’s internal crisis
- Nepal’s Constitution has a provision under which any treaty or agreement with another country on natural resources will require Parliament’s ratification by at least a two-thirds majority.
- That will also mean homework will be required before any hydro project is signed and given for execution.
Way forward
- Until India agrees to value Nepal’s water and the existing focus on power is not reviewed, mutual distrust may continue.
- India must start executing its projects timely.
- And its success is expected to restore India’s image in Nepal and give it weightage in future considerations for hydropower projects, when competition is bound to be tough.
- West Seti, therefore, has the potential to be a defining model for Nepal India’s power relations in future.
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From UPSC perspective, the following things are important :
Prelims level: WTO
Mains level: Read the attached story
Recently, member countries of the World Trade Organization (WTO) wrapped up the Ministerial Conference’s twelfth outing (MC12).
Key outcomes: “Geneva Package”
- The conference has secured key agreements on
- Relaxing patent regulations to achieve global vaccine equity
- Ensuring food security
- According subsidies to the fisheries sector
- Continuing moratoriums relevant to e-commerce
- Together they constitute what WTO Director-General is referred to as the “Geneva Package.”
- India saw some successes at the MC12 with respect to the above mentioned sectors.
What is the WTO’s Ministerial Conference?
- The MC is at the very top of WTO’s organisational chart.
- It meets once every two years and can take decisions on all matters under any multilateral trade agreement.
- Unlike other organisations, such as the International Monetary Fund or World Bank, WTO does not delegate power to a board of directors or an organisational chief.
- All decisions at the WTO are made collectively and through consensus among member countries at varied councils and committees.
- This year’s conference took place in Geneva, Switzerland.
Major debates at the MC12
(1) Agriculture
- India is a significant contributor to the World Food Programme (WFP).
- India had earlier stated that it had never imposed export restrictions for procurement under the programme.
- It put forth that a blanket exemption could constrain its work in ensuring food security back home.
- In such a situation, it would have to keep its WFP commitments irrespective of its domestic needs.
- Negotiators could not reach agreements on issues such as permissible public stockholding threshold for domestic food security, domestic support to agriculture, cotton, and market access.
(2) Fisheries
- India successfully managed to carve out an agreement on ELIMINATING subsidies to those engaged in illegal, unreported and unregulated fishing.
- The only exception for continuing subsidies for overfished stock is when they are deemed essential to rebuild them to a biologically sustainable level.
- Overfishing refers to exploiting fishes at a pace faster than they could replenish themselves — currently standing at 34% as per the UN Food and Agriculture Organization (FAO).
- Declining fish stocks threaten to worsen poverty and endanger communities that rely on aquatic creatures for their livelihood and food security.
- Further, the agreements hold that there would be no limitation on subsidies by developing or least-developed countries for fishing within their exclusive economic zones (EEZ).
(3) Patent relaxations
- Member countries agreed on authorising the use of a patent for producing COVID-19 vaccines by a member country, without the consent of the rights holder.
- Further, it asks member countries to waive requirements, including export restrictions, set forth by WTO regulations to supply domestic markets and member countries with any number of vaccines.
- The agreement, however, comes too little, too late for economically poorer countries.
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From UPSC perspective, the following things are important :
Prelims level: Critical Information Infrastructure (CIC)
Mains level: Read the attached story
The Union Ministry of Electronics and IT (MeitY) has declared IT resources of ICICI Bank, HDFC Bank and UPI managing entity NPCI as ‘critical information infrastructure’.
Try this PYQ:
In India, the term “Public Key Infrastructure” is used in the context of
(a) Digital security infrastructure
(b) Food security infrastructure
(c) Health care and education infrastructure
(d) Telecommunication and transportation infrastructure
Post your answers here.
What is Critical Information Infrastructure (CIC)?
- The Information Technology Act, 2000 explicitly gives definition of CIC.
- It defines CIC as a computer resource, the incapacitation or destruction of which shall have debilitating impact on national security, economy, public health or safety.
- It basically aims to protect the digital assets.
- The government, under the Act, has the power to declare any data, database, IT network or communications infrastructure as CII.
- Any person who secures access or attempts to secure access to a protected system in violation of the law can be punished with a jail term of up to 10 years.
Why is CII classification and protection necessary?
- IT resources form the backbone of countless critical operations in a country’s infrastructure.
- Given their interconnectedness, disruptions can have a cascading effect across sectors.
What led to the classification of CICs?
- In 2007, a wave of denial-of-service attacks, allegedly from Russian IP addresses, hit major Estonian banks, government bodies – ministries and parliament, and media outlets.
- It was cyber aggression of the kind that the world had not seen before.
- The attacks played havoc in one of the most networked countries in the world for almost three weeks.
Recent incidents of CIC incapacitation
- In October, 2020 as India battled the pandemic, the electric grid supply to Mumbai suddenly stopped.
- It hit the mega city’s hospitals, trains and businesses.
- Later, a study by a US firm claimed that this power outage could have been a cyber-attack, allegedly from a China-linked group.
- The government, however, was quick to deny any cyber-attack in Mumbai. But prospects cannot be denied.
- The incident underlined the possibility of hostile state and non-state actors probing internet-dependent critical systems in other countries, and the necessity to fortify such assets.
How are CIIs protected in India?
- Created in January 2014, the National Critical Information Infrastructure Protection Centre (NCIIPC) is the nodal agency.
- It takes all measures to protect the nation’s critical information infrastructure.
- It is mandated to guard CIIs from “unauthorized access, modification, use, disclosure, disruption, incapacitation or distraction”.
- NCIIPC monitors and forecasts national-level threats to CII for policy guidance, expertise sharing and situational awareness for early warning or alerts.
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From UPSC perspective, the following things are important :
Prelims level: Abraham Accord, I2U2
Mains level: Read the attached story
The US administration has named the new grouping as “I2U2” — “I” for India and Israel and “U” for the US and UAE. This was earlier referred as West Asian Quad.
What is the news?
- US President Joe Biden will host a virtual summit with PM Modi, Israel PM Naftali Bennett and UAE President Mohammed bin Zayed Al Nahyan during his visit to West Asia from July 13 to 16.
I2U2 Initiative
- Following the Abraham Accords between Israel and the UAE, I2U2 was founded in October 2021 to address marine security, infrastructure, and transportation challenges in the region.
- It was known as the ‘International Forum for Economic Cooperation’at the time.
- At that time, UAE had referred to the new grouping as the ‘West Asian Quad’.
What makes this deal outstanding?
- UAE forming sharing desk with Israel is no easy deal. Arab sentiments against Israel and their proposition for Anti-Semitism are well known.
Significance of the initiative
- I2U2 seeks to empower the partners and encourages them to collaborate more closely, resulting in a more stable region.
- India is seen as a large consumer market as well as a large producer of high-tech and highly sought-after items in the United States.
- This has led India to enhance its relationship with Israel without jeopardising its ties with the UAE and other Arab states.
Back2Basics: Abraham Accords
- The Israel–UAE normalization agreement is officially called the Abraham Accords Peace Agreement.
- It was initially agreed to in a joint statement by the United States, Israel and the United Arab Emirates (UAE) on August 13, 2020.
- The UAE thus became the third Arab country, after Egypt in 1979 and Jordan in 1994, to agree to formally normalize its relationship with Israel as well as the first Persian Gulf country to do so.
- Concurrently, Israel agreed to suspend plans for annexing parts of the West Bank. The agreement normalized what had long been informal but robust foreign relations between the two countries.
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From UPSC perspective, the following things are important :
Prelims level: Marine Heatwaves
Mains level: Climate Change
The super-cyclone Amphan is said to have been triggered by Marine Heatwaves.
What is the news?
- A study has found the presence of a strong MHW beneath the track of the cyclone with an extremely high anomalous sea surface temperature of more than 2.5°C.
- This coincided with the cyclone track and facilitated its rapid intensification in a short period.
What are Marine Heatwaves?
- We know that heatwaves occur in the atmosphere. We are all familiar with these extended periods of excessively hot weather.
- However, heatwaves can also occur in the ocean and these are known as marine heatwaves, or MHWs.
- These marine heatwaves, when ocean temperatures are extremely warm for an extended period of time can have significant impacts on marine ecosystems and industries.
When do they occur?
- Heatwaves can happen in summer and also in winter, where they are known as “winter warm-spells”.
- These winter events can have important impacts, such as in the southeast of Australia where the spiny sea urchin can only colonize further south when winter temperatures are above 12 °C.
What causes marine heatwaves?
- Marine heatwaves can be caused by a whole range of factors, and not all factors are important for each event.
- The most common drivers of marine heatwaves include ocean currents which can build up areas of warm water and air-sea heat flux, or warming through the ocean surface from the atmosphere.
- Winds can enhance or suppress the warming in a marine heatwave, and climate modes like El Niño can change the likelihood of events occurring in certain regions.
- MHWs can be caused due to large-scale drivers of the Earth’s climate like the El Niño Southern Oscillation (ENSO).
Impacts of the MHWs
- Marine heatwaves affect ecosystem structure, by supporting certain species and suppressing others.
- For example, after the 2011 marine heatwave in Western Australia, the fish communities had a much more “tropical” nature than previously and switched from kelp forests to seaweed turfs.
- Marine heatwaves can cause economic losses through impacts on fisheries and aquaculture.
- Temperature-sensitive species such as corals are especially vulnerable to MHWs. In 2016, marine heatwaves across northern Australia led to severe bleaching of the Great Barrier Reef.
How do we measure marine heatwaves?
- A marine heatwave occurs when seawater temperatures exceed a seasonally-varying threshold (usually the 90th percentile) for at least 5 consecutive days.
- Successive heatwaves with gaps of 2 days or less are considered part of the same event.
Why study MHWs?
- MHWs are increasing in frequency due to climate change. MHWs increased by 54 per cent in the last 30 years.
- MHW has severe socio-economic consequences such as fish mortality, and coral bleaching, and also has the potential to interact and modify other extreme events such as tropical cyclones.
Way Forward
- Marine heatwaves clearly have the potential to devastate marine ecosystems and cause economic losses in fisheries, aquaculture, and ecotourism industries.
- However, their effects are often hidden from view under the waves until it is too late.
- By raising general awareness of these phenomena, and by improving our scientific understanding of their physical properties and ecological impacts, we can better predict future conditions and protect vulnerable marine habitats and resources.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Private Captive Networks
Mains level: 5G Rollout
The Cellular Operators’ Association of India (COAI) wrote a letter urging the government against allotting 5G spectrum to private captive networks, claiming that it will diminish their revenue to the point where offering 5G will pointless.
What is a Private Captive 5G Network?
- A private captive 5G network is basically a network set up by a private entity for the use of just one organisation.
- It is similar to a captive coal mine in that the 5G service offered by this captive network will only be utilised by the enterprise concerned, and no one else.
Why are telecom providers against it?
- The COAI’s argument is that enterprises are the biggest users of 5G networks.
- If private entities are allowed to offer captive networks to enterprises, the TSPs (telecom service providers) retail revenues will fall.
- COAI implied that there is no great demand for 5G right now as “the needs of voice and data of the entire nation is being adequately met by the TSPs through their 4G networks today”.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Self reliance in edible oil through oil palm
Context
Supply disruptions during the pandemic and the Russia-Ukraine war have led many nations to think about “self-sufficiency” in critical food items or at least reduce their “excessive dependence” on imports of essential food products.
Challenges facing global trade
- The World Trade Organisation’s (WTO) recently concluded12th Ministerial Conference in Geneva, struggled to find answers to some of the complex questions pertaining to global trade.
- The Ministerial Conference is the top decision-making body of the agency whose basic goal is to ensure that trade flows as smoothly, predictably and freely.
- Trading rules for dire situations: As far as agriculture, trade and food security are concerned, the challenge is to figure out the most appropriate trading rules in dire situations like pandemics, wars, social/political disruptions or natural disasters.
- Export bans: Recent examples include Russia’s export ban on wheat and sunflower oil, Ukraine’s ban on exports of food staples, Indonesia’s ban on palm oil exports, Argentina’s ban on beef exports, Turkey, Kyrgyzstan and Kazakhstan’s ban on a variety of grain products, and India’s wheat export ban.
- Sudden actions such as these exacerbate the pressure on global trade leading to a spike in the prices.
India’s import dependence for edible oil
- India imports 55 to 60 per cent of its edible oil requirements.
- India’s edible oil import bill in 2021-22 (FY22) crossed $19 billion (for more than 14 MMT of imports) (see figure).
- Palm oil comprises more than 50 per cent of India’s edible oil imports, followed by soybean and sunflower.
- Atmanirbharta in edible oil: The “excessive dependence” on imports has raised the pitch for “atmanirbharta” in edible oil.
- The Prime Minister launched the National Edible Oil Mission-Oil Palm (NEOM-OP) in 2021.
Self-reliance Vs Self-sufficiency
- “Self-sufficiency” and “self-reliance” are two different concepts with very different policy implications.
- What is self-sufficiency? Self-sufficiency would imply replacing all imports of a commodity (say edible oils in India’s case) at any cost (thus raising import duties exorbitantly).
- What is self-reliance? Self-reliance would continue to embed the principle of “comparative advantage” in the endeavour to reduce dependence on imports.
- Case of India’s agriculture: The country’s agri-exports in FY22 touched $ 50.3 billion against its agri-imports of $ 32.4 billion.
- This means that Indian agriculture is largely globally competitive.
- But its biggest agri-import item, edible oil, accounts for 59 per cent of India’s agri-import basket.
Way forward
- 1] Develop oil palm: Given the way international prices of edible oils have surged in the last year or so (by more than 70 per cent), it may be time for India to ramp up its efforts in developing oil palm.
- Why oil palm? The Prime Minister launched the National Edible Oil Mission-Oil Palm (NEOM-OP) in 2021.
- Challenges in traditional oilseed: Achieving atmanirbharta in edible oils through traditional oilseeds such as mustard, groundnuts and soya would require an additional area of about 39 million hectares under oilseeds.
- Danger to food security: Such a large tract of land will not be available without cutting down the area under key staples (cereals) – this could endanger the country’s food security even more.
- So, a rational policy option to reduce import dependence in edible oils is to develop oil palm at home and ensure that it gives productivity comparable to that in Indonesia and Malaysia — about four tonnes of oil per hectare, which is more than 10 times mustard can give at existing yields.
- India has identified 2.8 million hectares of area where oil palm can be grown suitably.
- So far the objective of NEOM-OP is to bring in at least 1 million hectare under oil palm by 2025-26.
- 2] Declare oil palm as a plantation crop: The other option is to declare oil palm as a plantation crop and allow the corporate players to own/lease land on a long-term basis to develop their own plantations and processing units.
- This does not seem plausible in the current socio-political context.
Challenges
- Long gestation period: It takes four to six years to come to maturity; during this period, smallholders need to be fully supported.
- The support (subsidy) could be the opportunity cost of their lands, say profits from paddy cultivation, which is largely the crop oil palm will replace in coastal and upland areas of Andhra, Telangana and Northeast India.
- Pricing formula: Further, the pricing formula of fresh fruit bunches (FFB) for farmers has to be dovetailed with a likely long-run average landed price of crude palm oil with due flexibility in the import duty structure.
- Appropriate import duty: One needs to identify trigger points when import duties need to be raised as global prices come down, and when to reduce these duties in case of rising global prices.
- Oil recovery: Besides this, the processing industry needs to ensure an oil recovery of at least 18 to 20 per cent – that must be built into the pricing formula.
Conclusion
Overall, unless India thinks holistically and adopts a long-term vision, the chances of reducing India’s imports of edible oils from 14MMT in FY22 to 7MMT by FY27 look bleak.
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