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Tax Reforms

Stamp Duty on Mutual Fund Purchases

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Mutual Funds, Stamp Duty

Mains level: Regulation of capital market in India

The Amendments in the Indian Stamp Act, 1899 has been brought through Finance Act 2019 for Rationalized Collection Mechanism of Stamp Duty across India with respect to Securities Market Instruments.

Up till now, we knew that stamp duties are levied on property transactions, registrations etc. With the Finance Act 2019, the stamp duties are also levied on Mutual Funds.

What is Stamp Duty?

  • Stamp duty is a legal tax payable in full and acts as evidence for any sale or purchase of a property. It is payable under Section 3 of the Indian Stamp Act, 1899.
  • The levy of stamp duty is a state subject and thus the rates of stamp duty vary from state to state.
  • The Centre levies stamp duty on specified instruments and also fixes the rates for these instruments.
  • It is usually paid by the buyer with regardless of agreement and in case of property exchange, both seller and the buyer has to share the stamp duty equally.
  • A stamp duty paid instrument/document is considered a proper and legal instrument/document and has evidentiary value and is admitted as evidence in courts.

What is the move?

  • Beginning July 1, all shares and mutual fund purchases will attract a stamp duty of 0.005 per cent and any transfer of security will attract a stamp duty of 0.015 per cent.
  • The government had introduced changes to the Stamp duty Act last year by introducing a uniform rate of stamp duty on the trading of shares and commodities.
  • All categories of mutual funds (except for ETFs) will attract stamp duty for the first time.
  • Shares purchased by individuals at stock exchanges were charged stamp duty at different rates by respective states.

Where all will it be applicable?

  • The stamp duty will be applicable on all transactions, including shares, debt instruments, commodities and all categories of mutual fund schemes.
  • As for mutual funds, it will be applicable on all fresh purchases, including the fresh monthly purchases in previously registered Systematic Investment Plans.
  • It will also be applicable if investors switch from one scheme to another and also in case of dividend reinvestment transactions.
  • Transfers of units from one Demat account to another, including market/off-market transfers, will also attract stamp duty.

How does it impact the investor?

  • The impact on long-term investments by a retail investor is nominal.
  • Since the stamp duty will be charged a one-time charge, if an investor invests Rs 1 lakh in a mutual fund scheme or in stock and holds it for two years, he will have to pay a duty of only Rs 5.
  • In fact, it will be marginally lower as the stamp duty is applicable on the net investment value i.e gross investment amount less than any other deduction like transaction charge.
  • There is no duty at the time of redemption.

What about big investors?

  • The impact is higher for investors with short-term investment horizons such as banks and corporates who invest in liquid and overnight schemes of mutual funds.

How much revenue can it generate for the government?

  • In the financial year 2019-20, the mutual fund industry mobilized aggregate funds of over Rs 188 lakh crore.
  • A high portion of that was in overnight funds or liquid funds.
  • A 0.005 per cent stamp duty on this amount works out to Rs 940 crore.
  • If the industry continues to mobilise funds to the tune of Rs 190 lakh crore or higher, it will generate revenues of nearly Rs 1,000 crore for the government from mutual fund transactions itself.

Back2Basics: Mutual Funds

  • MF is a trust that collects money from a number of investors who share a common investment objective.
  • Then, it invests the money in equities, bonds, money market instruments and/or other securities.
  • Each investor owns units, which represent a portion of the holdings of the fund.
  • The income/gains generated from this collective investment are distributed proportionately amongst the investors after deducting certain expenses, by calculating a scheme’s “Net Asset Value or NAV.
  • It is one of the most viable investment options for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
  • All funds carry some level of risk. With mutual funds, one may lose some or all of the money invested because the securities held by a fund can go down in value.

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Global Geological And Climatic Events

The lost continent of Zealandia

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Zealandia

Mains level: Zealandia and its features

A new map has revealed the lost continent of Zealandia.

The ocean relief can be divided into various parts such as Continental Shelf, Continental Slope, Continental Rise or Foot, Deep Ocean basins, Abyssal plains & Abyssal Hills, Oceanic Trenches, Seamounts and Guyots.

Revise these ocean bottom relief features from your basic references.

Also revise India’s Deep Ocean Mission.

About Zealandia

  • Zealandia — or Te Riu-a-Māui, as it’s referred to in the indigenous Māori language — is a 2 million-square-mile (5 million square kilometres) continent east of Australia, beneath modern-day New Zealand.
  • Scientists discovered the sprawling underwater mass in the 1990s, then gave it formal continent status in 2017.
  • Still, the “lost continent” remains largely unknown and poorly studied due to its Atlantean geography.

Its formation

  • It is a group of submerged pieces of crust that separated from the ancient supercontinent Gondwana about 85 million years ago.
  • Gondwana was formed when Earth’s ancient supercontinent, Pangea, split into two fragments.
  • Laurasia was transformed into North America, Asia, and Europe, while Gondwana became Africa, South America, Australia, and Antarctica.
  • But land masses continued to be rearranged afterwards, with Zealandia breaking off Gondwana.

Data revealed by the new map

  • The new maps reveal Zealandia’s bathymetry (the shape of the ocean floor) as well as its tectonic history, showing how volcanism and tectonic motion have shaped the continent over millions of years.
  • Data for the bathymetric map was provided by the Seabed2030 project — a global effort to map the entire ocean floor by 2030.

Why call it a continent?

  • Zealandia was classified as a “microcontinent,” as the island of Madagascar, until 2017.
  • But according to Mortimer, it has all the requirements to be classified as a continent.
  • It has defined boundaries; it occupies an area of over one million square kilometres and is elected above the ocean crust.

Also read: https://www.civilsdaily.com/news/seabed-2030-project/

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Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

G4 Flu virus and it’s pandemic potential

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G4 Flu

Mains level: Rise in zoonotic diseases and their possible causes

In new research, scientists from China – which has the largest population of pigs in the world – have identified a “recently emerged” strain of influenza virus that is infecting Chinese pigs and that has the potential of triggering a pandemic.

Practice question for mains:

Q.What are zoonotic diseases? Why China has emerged as the epicentre of global outbreaks of zoonotic disease?

G4 Flu

  • Named G4, the swine flu strain has genes similar to those in the virus that caused the 2009 flu pandemic.
  • The scientists identified the virus through surveillance of influenza viruses in pigs that they carried out from 2011 to 2018 in ten provinces of China.
  • They also found that the G4 strain has the capability of binding to human-type receptors (like, the SARS-CoV-2 virus binds to ACE2 receptors in humans).
  • The virus was able to copy itself in human airway epithelial cells, and it showed effective infectivity and aerosol transmission.

Swine industry is the new hotspot for zoonoses

  • The scientists report that the new strain (G4) has descended from the H1N1 strain that was responsible for the 2009 flu pandemic.
  • Pigs are intermediate hosts for the generation of pandemic influenza virus.
  • Thus, systematic surveillance of influenza viruses in pigs is a key measure for pre-warning the emergence of the next pandemic influenza.

Back2Basics: 2009 swine flu pandemic

  • The WHO declared the outbreak of type A H1N1 influenza virus a pandemic in 2009 when there were around 30,000 cases globally.
  • It was caused by a strain of the swine flu called the H1N1 virus, which was transmitted from human to human.
  • Influenza viruses that commonly circulate in swine are called “swine influenza viruses” or “swine flu viruses”.
  • Like human influenza viruses, there are different subtypes and strains of swine influenza viruses. Essentially, swine flu is a virus that pigs can get infected by.
  • The symptoms of swine flu include fever, cough, sore throat, body aches, headaches, chills and fatigue.

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New Species of Plants and Animals Discovered

Species in news: Assam keelback snake

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Assam Keelback Snake

Mains level: NA

More than a century after it was first seen, the Assam keelback — a snake species endemic to the region — was rediscovered in 2018 at the Poba Reserve Forest (RF) by a team from Wildlife Institute of India (WII).

Try this question from CSP 2018:

Q.In which one of the following State Pakhui Wildlife Sanctuary is located?

(a) Arunachal Pradesh (b) Manipur (c) Meghalaya (d) Nagaland

Assam Keelback Snake

  • The species is small — about 60 cm long, brownish, with a patterned belly.
  • This particular keelback does not belong to the generalized keelback snake of India but is rather a unique genus (Herpetoreas).
  • It was discovered 129 years ago by Samuel Edward Peel, a British tea planter based in Upper Assam.
  • The snake’s ‘lost’ status has a lot to do with the habitat it occupies — in this case, a lowland evergreen forest.
  • These forests have been selectively degraded during the last 100 years: tea plantations have been made, selective logging has taken place, and many other activities such as oil exploration and coal mining.

Is the snake under threat?

  • Most snakes and other reptiles are categorised as ‘data deficient’ in the IUCN list.
  • There is practically no information available about it and it is difficult to determine its status.

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New Species of Plants and Animals Discovered

Species in news: Globba Andersonii Plant

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Species in news: Globba Andersonii Plant

Mains level: NA

A team of researchers have “rediscovered” a rare species called Globba andersonii from the Sikkim Himalayas near the Teesta River valley region after a gap of nearly 136 years.

Try this question from CSP 2016:

Q.With reference to ‘Red Sanders’, sometimes seen in the news, consider the following statements:

  1. It is a tree species found in a part of South India.
  2. It is one of the most important trees in the tropical rain forest areas of South India.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Globba Andersonii

IUCN status: Critically Endangered

  • Globba andersonii is characterised by white flowers, non-appendaged anthers (the part of a stamen that contains the pollen) and a “yellowish lip”.
  • The plant, known commonly as ‘dancing ladies’ or ‘swan flowers’ was thought to have been extinct until its “re-collection”, for the first time since 1875.
  • The earliest records of the collection of this plant were dated between the period 1862-70 when it was collected by Scottish botanist Thomas Anderson from Sikkim and Darjeeling.
  • Then, in 1875, the British botanist Sir George King, had collected this taxon from the Sikkim Himalayas.

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Digital India Initiatives

Share the public data with public

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NDSAP

Mains level: Paper 2-Sharing of public data

Open access to public data is essential for policy analysis and evidence-based policymaking. Policy framework for sharing of public data by the government is also looked into in this article. 

How Open Data Charter came about

  • Open-source software enthusiasts and civil society activists in the U.S. and U.K. came with a demand to unlock the data gathered by governments for unfettered access and reuse by citizens.
  • Data collected at public expense must belong to the people. This is the principle for the Open Data Charter adopted by 22 countries since 2015.
  • It calls upon governments to disseminate public data in open digital formats.
  • In return, the Charter argues, governments can expect “innovative, evidence-based policy solutions”.

Steps toward making data accessible-NDSAP

  •  The National Data Sharing and Accessibility Policy (NDSAP) was adopted in 2012.
  • It was a step towards making non-sensitive government data accessible online.
  • The main thrust of the policy is to “promote data sharing and enable access to Government of India owned data for national planning, development and awareness”.
  • The implementation guidelines for NDSAP include ideals such as “openness, flexibility, transparency, quality” of data.
  • It aims to facilitate “access to Government of India shareable data in machine-readable form”.
  • The guidelines prescribe open digital formats suitable for analysis and dissemination.
  • Opaque formats such as the portable document format and the image format are discouraged.
  • As part of the Open Government Data (OGD) initiative, data.gov.in was launched in 2012.
  • However, the implementation has lagged far behind its stated objectives.

How data could have helped policy making in Covid pandemic

  • The district-wise, demographic-wise case statistics and anonymous contact traces released in the public domain would have proved useful.
  • Reliable model forecasts of disease spread and targeted regional lockdown protocols could have been generated.
  • Model forecasts have limitations, but models without inputs from empirical data are even more unreliable.

Violation of OGD in data shared for pandemic

  • Principles of OGD notwithstanding, sufficiently granular infection data are not available.
  • Violating the data format guidelines, OGD portal provides COVID-19 data only as a graphic image unsuitable for any analysis.
  • The Indian Council of Medical Research and mygov.in fare no better.
  • They too do not publish district-wise statistics, and the available data are not in usable formats.

Examples from other countries

  • The data portals of Canada, the U.K. and the U.S. present district-wise COVID-19 cases data.
  • These countries also provide data about the emergent effects on mental health, jobs and education.
  • According to the latest report of the Open Data Barometer, an independent group measuring the impact of open data, these nations lead the pack.
  • India is a contender to reach the top bracket and not a laggard.

Way forward

  • The government must provide the impetus and incentive to exploit this voluminous data by invigorating the dated national data portal.
  • Every department must be mandated to share substantive data respecting privacy concerns.
  • The government should look within for examples of creative outcomes of opening up the database.
  • Start-ups have built novel applications using Indian Railways data to provide ticket confirmation prediction and real-time train status.

Consider the question “Examine the provisions for data sharing and accessibility in India. Also, elaborate how the sharing of public data could help in policymaking.”

Conclusion

Sharing public data is a way to create beneficial social impact. So, the government must ensure the implementation of policy measures and encourage the analysis of public data to come at the informed policy decision.

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Why spending on infrastructure matters

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Aggregate demand, components of India's growth

Mains level: Paper 3- Importance of spending of infrastructure

Spending on infrastructure can help kickstart the economy. This article highlights the importance of spending on infrastructure and suggests ways to find resources.

Gloomy prospects for Indian economy

  • The IMF estimates the global economy to contract by -4.9 per cent this year.
  • It could still contract should the virus not recede in the latter half of 2020.
  • As for the Indian economy, growth has been decelerating for the past eight quarters.
  • Indications by the RBI suggest that growth is contracting for the first time in four decades.
  •  We must address the elephant in the room — the need to further aid a demand recovery as the economy begins to reopen.

Components of Indias growth

  • Growth in the Indian economy has been dominated by the following components respectively-
  • 1) Consumption.
  • 2) It is followed by investments.
  • 3) Government expenditure.
  • 4) Net exports.
  • However, consumption and investment demand have been subdued for the past few quarters, dragging down overall growth.
  • Keynesian theory suggests that for aggregate demand to increase, at least one of the components of GDP needs to expand.

Declining consumption demand

  • These two components were perhaps casualties of a sharp deceleration in credit supply.
  •  The IL&FS debacle in September 2018 only made matters worse.
  • The NBFC sector, suffered from funding crunches leading to a further squeeze in credit supply.
  • Freeze in credit supply impacted consumption demand.
  • This deceleration is likely to exacerbate going forward.

Declining rate of investment

  • Broad-based utilisation levels, as represented by the RBI, dropped to 68.6 per cent in Q3FY20.
  • This is well below the 75 per cent benchmark for new capacity addition, implying suboptimal levels of fresh investments.
  • A higher rate of investments is essential for sustainable economic growth.
  • The deteriorating economic scenario and increasing levels of debt with rating downgrades for industries are likely to aggravate existing problems.

Importance of expenditure on spending on infrastructure

  • Government expenditure is the only exogenously determined element in a Keynesian framework.
  • The positive push required to aid a demand recovery has to come through the government.
  • However, with sparse resources that India has, we must deploy funds that yield a higher return.
  • One key area that can provide the necessary support is infrastructure investment.
  • A study by S&P Global estimates 1 per cent of GDP spend on infrastructure can boost real growth by 2 per cent while creating 1.3 million direct jobs.
  • Historically, countries have used infrastructure to provide counter-cyclical support to the economy.
  • Notably, infrastructure has strong links to growth and with both supply and demand-side features that help generate employment and long-term assets.
  • India already has an upper hand here.
  • Front-loading key projects with greater visibility from the recently announced National Infrastructure Pipeline (NIP) could aid in a quicker recovery.

Special infrastructure bond

  •  India already has several institutions for infrastructure development purposes from the likes of IIFCL, IRFC to more recently NIIF.
  • Taking a cue from China, floating special infrastructure bonds through this organisation to accelerate the funding of the NIP could aid a speedier recovery.
  • Further, taking a page from the New Deal and its Reconstruction Finance Corporation, this institution’s ability for greater leverage can be used to make amends to our credit channels.
  • This ability could also be used for the development of state government and urban local body bond markets.
  • This could help businesses and bankers overcome risk aversion and bring back trust in the system while financing new paths for growth.

Consider the question “Highlight the role of consumption and investment as the two largest contributors to India’s growth and explain how spending on the infrastructure could help revive the economy hit hard by the pandemic”

Conclusion

The exogenous component in the form of spending by the government could step-in in a greater way, perhaps because, it is the only one that can.

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Foreign Policy Watch: India-China

Resistance to China is going to be definitive moment for India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India-China standoff

How India overcomes the challenge posed by China would have far-reaching effects. Role of Russia and the U.S. is important for India. This article discusses these factors and the significance of the outcome of the conflict started at Galwan. 

Two takes on India’s China policy

  • Following Galwan encounter, there are two views about the future of India’s China policy.
  • Some say that structural constraints would limit dramatic changes in policy once the heat of the moment dissipates.
  • While others say that the Galwan clash comes amidst the deepening crisis in bilateral relations over the last decade.
  • Stalled boundary talks, a widening trade deficit, the clash of national interests in the region, and Chinese opposition to India’s global aspirations have together strained Sino-Indian relations.
  • Galwan is the last straw, the argument goes, that broke the camel’s back.

So, what will be the outcome

  •  The relationship is likely to depend on how the current military confrontation in Ladakh is resolved.
  • If it ends with a quick return to the status quo that prevailed in April, inertia is likely to limit radical policy departures.
  • If the Ladakh crisis ends in a setback for India, the pressure on Delhi to radically reorient its China policy will mount.

What if the standoff continues?

  • In that case strengthening India’s military and political hand against China is the immediate objective of Delhi’s post-Galwan diplomacy.
  • The long term steps suggested include the construction of a military alliance with the US and other Western partner.
  • As as well as economic decoupling and diversification.
  • Short term steps are about being able to stare down the Chinese in the current military confrontation and hold its ground.

Role of Russia

  • Three decades after the collapse of the Soviet Union, India’s dependence on Russian arms remains substantive.
  • Rajnath Singh’s visit to Moscow amidst the crisis with China underlines the weight of the past in India’s security policy.
  • India is also pressing other major defence suppliers, including France and Israel, to accelerate deliveries on contracted defence equipment.
  • There have been reports from Russia, that China is pressing Moscow not to sell the new fighter aircraft to India.
  • Russia and China are strong strategic partners today.
  • While the past suggests India has a special claim to Russian affections, there is a Sino-Russian strategic cohabitation today in opposition to America
  • How Russia responds to India’s request will have a major bearing on the future evolution of Delhi’s ties with Moscow.

Role of the U.S.

  • Unlike Russia’s public stance of neutrality between India and China, Washington has come out in favour of Delhi.
  • There was vocal public support of the US defence and foreign policy establishment against Chinese aggression at Galwan.
  •  Media reports from Delhi say the US is already supplying valuable real-time military intelligence of value to the Indian armed forces.
  • Washington is apparently willing to do more but is letting Delhi decide the pace and intensity of that cooperation.

Challenges in the U.S. cooperation

  • The uncertain political moment in the US amidst the general election scheduled for early November can’t be underestimated.
  • A change of guard in Washington will certainly slow things down as the new administration settles down and reviews its priorities.
  • America’s stakes in China are far higher than Russia’s.
  • Profound economic interdependence of the U.S. and China is a significant political constraint on the US’s options.
  • On deeper military cooperation with Washington, Delhi would want to move with care rather than rush into it as it did in 1962.

How will outcomes of the crisis matter for India

  • If Delhi comes out of this crisis wounded, its troubles at home and the world will mount significantly.
  • A weakened India will find recasting its China policy even harder.
  • But victorious India will find its international political stock rising and its options on China expanding.
  •  Successful Indian resistance to China’s expansionism would be a definitive moment in the geopolitical evolution of Asia.
  • The stakes for India and the world, then, are far higher today than in 1962.

Consider the question “Examine the issues that introduce friction in India-China relations. Also, elaborate on the scope of India’s alliance with the U.S to counter the challenges posed by China.”

Conclusion

Outcomes of the resistance will have a profound impact on India’s standing and India’s destiny.

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Primary and Secondary Education – RTE, Education Policy, SEQI, RMSA, Committee Reports, etc.

What is the STARS Project?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: STARS Project

Mains level: Read the attached story

The World Bank has approved a $500 million Strengthening Teaching-Learning and Results for States Program (STARS) to improve the quality and governance of school education in six Indian states.

Try this question:

Q. The STARS Project recently seen in news is an initiative of:

World Bank/ Bill and Melinda Gates Foundation / UNECOSOC/ UNICEF

STARS Project

  • The STARS project will be implemented through the Samagra Shiksha Abhiyan, the flagship central scheme.
  • The six states include- Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Odisha and Rajasthan.
  • It will help improve learning assessment systems, strengthen classroom instruction and remediation, facilitate school-to-work transition, and strengthen governance and decentralized management,
  • Some 250 million students (between the age of 6 and 17) in 1.5 million schools and over 10 million teachers will benefit from the STARS program.
  • STARS will support India’s renewed focus on addressing the ‘learning outcome’ challenge and help students better prepare for the jobs of the future – through a series of reform initiatives.

Reform initiatives under STARS

  • Focusing more directly on the delivery of education services at the state, district and sub-district levels by providing customized local-level solutions towards school improvement.
  • Addressing demands from stakeholders, especially parents, for greater accountability and inclusion by producing better data to assess the quality of learning.
  • Equipping teachers to manage this transformation by recognizing that teachers are central to achieving better learning outcomes. The program will support individualized, needs-based training for teachers that will give them an opportunity to have a say in shaping training programs and making them relevant to their teaching needs.
  • Investing more in developing India’s human capital needs by strengthening foundational learning for children in classes 1 to 3 and preparing them with the cognitive, socio-behavioural and language skills to meet future labour market needs.

Issues with the project

  • First, it fails to address the basic capacity issues: major vacancies across the education system from District Institutes of Education and Training (DIETs), district and block education offices, to teachers in schools, remain unaddressed.
  • Without capable and motivated faculty, teacher education and training cannot be expected to improve.
  • Second, the Bank ignores that decentralizing decision-making requires the devolution of funds and real decision-making power.
  • Greater decentralisation can allow accountability to flow to the people rather than to supervising officers.
  • It requires not just investment in the capacity of the front-line bureaucracy but also in increasing their discretionary powers while fostering social accountability.

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Food Processing Industry: Issues and Developments

PM Formalization of Micro Food Processing Enterprises (PM FME) Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: PM-FME scheme

Mains level: Food processing industry and the required reforms

The Ministry for Food Processing Industries (MoFPI) has launched the PM Formalization of Micro Food Processing Enterprises (PM FME) as a part of “Atmanirbhar Bharat Abhiyan”.

Practice question for mains:

Q.What is the PM FME Scheme? Discuss its potential to neutralize various challenges faced by India’s unorganized food industries.

PM FME Scheme

  • It aims to provide financial, technical and business support for upgradation of existing micro food processing enterprises.
  • It is a centrally sponsored scheme to be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.
  • The expenditure under the scheme would to be shared in 60:40 ratios between Central and State Governments, in 90:10 ratios with NE and the Himalayan States, 60:40 ratio with UTs with the legislature and 100% by Centre for other UTs.

Features of the scheme

  • The Scheme adopts One District One Product (ODODP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
  • The States would identify food product for a district keeping in view the existing clusters and availability of raw material.
  • The ODOP product could be a perishable produce based product or cereal-based products or a food product widely produced in a district and their allied sectors.
  • An illustrative list of such products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet-based products, fisheries, poultry, meat as well as animal feed among others.
  • The Scheme also place focus on waste to wealth products, minor forest products and Aspirational Districts.

Credit facility provided

  • Existing Individual micro food processing units desirous of upgradation of their unit can avail credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
  • Seed capital @ Rs. 40,000/- per SHG member would be provided for working capital and purchase of small tools.
  • FPOs/ SHGs/ producer cooperatives would be provided a credit-linked grant of 35% for capital investment along the value chain.
  • Support for marketing & branding would be provided to develop brands for micro-units and groups with 50% grant at State or regional level which could benefit a large number of micro-units in clusters.

Why need such a scheme?

  • The unorganized food processing sector comprising nearly 25 lakh units contribute to 74% of employment in the food processing sector.
  • Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises supporting livelihood rural household and minimizing their migration to urban areas.

Challenges faced

  • The unorganised food processing sector faces a number of challenges which limit their performance and their growth.
  • These challenges include lack of access to modern technology & equipment, training, access institutional credit, lack of basic awareness on quality control of products; and lack of branding & marketing skills etc.
  • Owing to these challenges; the unorganised food processing sector contributes much less in terms of value addition and output despite its huge potential.

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Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

Gold Nanoparticles and their applications

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Gold Nanoparticles

Mains level: Applications of nanomaterials

Indian researchers have successfully synthesized gold nanoparticles (GNPs) using psychrotolerant Antarctic bacteria through a non-toxic, low-cost, and eco-friendly way.

Nanotechnology is a pathbreaking technology which can create many new materials and devices with a wide range of applications, such as in nanomedicine, nanoelectronics etc.   GNPs are another distinct development.

What are Gold Nanoparticles?

  • Metallic NPs have been efficiently exploited for biomedical applications and among them, GNPs are found to be effective in biomedical research.
  • And NPs are those materials that are at least one dimension smaller than 100 nanometers.
  • NPs have a high surface-to-volume ratio and they can provide the tremendous driving force for diffusion, especially at elevated temperatures.
  • GNPs are melted at much lower temperatures (300 °C) than bulk gold (1064 °C).
  • NPs have been found to impart various desirable properties to different day-to-day products.
  • For example, GNPs are found to have greater solar radiation absorbing ability than the conventional bulk gold, which makes them a better candidate for use in the photovoltaic cell manufacturing industry.

Properties of GNP

1) Biomedical

  • Genotoxicity describes the property of a chemical agent that is capable of damaging the genetic information of DNA and thus causing the mutation of the cell, which can lead to cancer.
  • The study revealed the genotoxic effect of GNPs on a sulphate reducing bacteria (SRB).
  • These GNPs can be used as composite therapeutic agent clinical trials, especially in anti-cancer, anti-viral, anti-diabetic, and cholesterol-lowering drugs.

2) Optical

  • GNPs have unique optical properties too. For example, particles above 100 nm show blue or violet colour in the water, while the colour becomes wine red in 100 nm gold colloidal particles.
  • They can thus be used for therapeutic imaging.

3) Electronics

  • GNPs are also found to be useful in the electronics industry.
  • Scientists have constructed a transistor known as NOMFET (Nanoparticles Organic Memory Field-Effect Transistor) by embedding GNPs in a porous manganese oxide.
  • NOMFETs can mimic the feature of the human synapse known as plasticity or the variation of the speed and strength of the signal going from neuron to neuron.
  • These novel transistors can now facilitate better recreation of certain types of human cognitive processes, such as recognition and image processing and have their application in AI.

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Water Management – Institutional Reforms, Conservation Efforts, etc.

Kholongchhu Hydel Project

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Kholongchhu Hydel Project

Mains level: Not Much

India and Bhutan took a major step forward for the construction of the 600 MW Kholongchhu project.

Try this question from CSP 2019:

What is common to the places known as Aliyar, Isapur and Kangsabati?

(a) Recently discovered uranium deposits

(b) Tropical rain forests

(c) Underground cave systems

(d) Water reservoirs

Kholongchhu Hydel Project

  • The Kholongchhu project is regarded as a “milestone” in the India-Bhutan partnership, under which four hydropower projects have been built in the last 30 years totalling a capacity of 2,100 MW.
  • It is one of four additional projects agreed to in 2008, as a part of India’s commitment to helping Bhutan create a total 10,000 MW of installed capacity by 2020.
  • The project is located at the lower course of Kholongchhu just before its confluence with Drangmechu (Gongrichu) in Trashiyangtse District of Bhutan.
  • The GoI will provide, as a grant, the equity share of the Bhutanese DGPC in the JV Company.
  • Once the project is commissioned, the JV partners will run it for 30 years, called the concession period, after which the full ownership will transfer to the Bhutan government.

Whats’ so special with the project?

  • It is the first hydropower joint venture project in Bhutan’s less developed eastern region of Trashiyangtse.
  • It is the first time an India-Bhutan hydropower project will be constructed as a 50:50 joint venture and not as a government-to-government agreement.

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Innovations in Biotechnology and Medical Sciences

What is Gynandromorphism?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Gynandromorphism

Mains level: NA

Recently, a rare biological phenomenon called Gynandromorphism was observed in dragonflies at Kole wetlands of Kerala.

Gynandromorphism is a core biology concept. We can expect a prelims question in a rare scenario.

Try this question from CSP 2013:

Q.Improper handling and storage of cereal grains and oilseeds result in the production of toxins known as aflatoxins which are not generally destroyed by normal cooking process. Aflatoxins are produced by

(a) Bacteria (b) Protozoa (c) Moulds (d) Viruses

Gynandromorphism

  • Gynandromorphs are individual animals that have both genetically male and female tissues and often have observable male and female characteristics.
  • They may be bilateral, appearing to divide down the middle into male and female sides, or they may be mosaic, with patches characteristic of one sex appearing in a body part characteristic of the other sex.
  • Gynandromorphs occur in insects, spiders, crustaceans, and other arthropods as well as in birds, but they are extremely rare, and discovering one in the field or in the laboratory is a major event.
  • Estimating how frequently they occur is difficult because they usually go unnoticed in species where sexual dimorphism is less pronounced.
  • Gynandromorphs have been reported in mosquitoes, fruit flies, and in other insects, but they are most dramatic in those butterfly species in which the male and female wing colours and patterns are dramatically different.

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Foreign Policy Watch: India-China

Making sense of moves of China

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Galwan valley

Mains level: Paper 2- India-China relations, role of intelligence, limits of summit diplomacy

The role played by intelligence and emphasis on Summit diplomacy in relation with China are the two issues discussed in this article. So, what went wrong in Galwan incident from the intelligence point of view? And what are the perils of Summit diplomacy? Read to know...

Galwan-New and fractious phase

  • What occurred in the Galwan heights on June 15, must not be viewed as an aberration.
  • It would be more judicious to view it as signifying a new and fractious phase in China-India relations.
  • Even if the situation reverts to what existed in mid-April India-China relations appear set to witness a “new and different normal”.
  • China’s reaction has been consistent — India must move out of Galwan.
  • This is something that India cannot ignore any longer.
  • Galwan incident cannot be viewed as a mere replay of what took place in Depsang (2013), Chumar (2014) and Doklam (2017).
  • This is a new and different situation and India must not shrink from addressing the core issue that relations between India and China are in a perilous state.

Close and careful analysis of China’s claim is necessary

  • China’s assertion of its claim to the whole of the Galwan Valley needs close and careful analysis for following reasons-
  • 1) Point 14 gives China a virtual stranglehold over the newly completed, and strategically significant, Darbuk-Shyok-Daulat Beg Oldie Road, which leads on to the Karakoram Pass.
  • 2) The strategic implications for India of China’s insistence on keeping the whole of the Galwan Valley are serious as it fundamentally changes the status quo.
  • 3) By laying claim to the Galwan Valley, China has reopened some of the issues left over from the 1962 conflict.
  • And this demonstrates that it is willing to embark on a new confrontation.

LAC and claim line of China

  • Ambiguity has existed regarding the Line of Actual Control (LAC) in this sector.
  • The Chinese “claim line” is that of November 1959.
  • For India the LAC is that of September 1962.
  • In recent years, both sides had refrained from reopening the issue, but China has never given up its claims.
  • By its unilateral declaration now, China is seeking to settle the matter in its favour. India needs to measure up to this challenge.

Importance of Aksai Chin

  • The importance of Aksai Chin for China has greatly increased of late, as it provides direct connectivity between two of the most troubled regions of China, viz., Xinjiang and Tibet.
  • This does not seem to have been adequately factored in our calculations.
  • While Indian policymakers saw the reclassification of Ladakh as purely an internal matter.
  • They overlooked the fact that for China’s military planners it posited a threat to China’s peace and tranquillity.

Intelligence capabilities

  • Admittedly, the timing and nature of China’s actions should have aroused keen interest in intelligence circles about China’s strategic calculations.
  • The Chinese build-up in the Galwan Valley, Pangong Tso and Hotsprings-Gogra did not require any great intelligence effort, since there was little attempt at concealment by the Chinese.
  • India also possesses high-quality imagery intelligence (IMINT) and signals intelligence (SIGINT) capabilities.
  • These capabilities are distributed between the National Technical Research Organisation, the Directorate of Signals Intelligence of the Ministry of Defence and other agencies.
  • Which made it possible to track Chinese movement.
  • Where intelligence can be faulted is with regard to inadequate appreciation of what the build-up meant, and what it portended for India.
  • This is indicative of a weakness in interpretation and analysis of the intelligence available.
  • And also of inability to provide a coherent assessment of China’s real intentions.
  • Intelligence assessment of China’s intentions, clearly fell short of what was required.
  • While India’s technological capabilities for intelligence collection have vastly increased in recent years, the capacity for interpretation and analysis has not kept pace with this.
  • Advances in technology, specially Artificial Intelligence have, across the world, greatly augmented efforts at intelligence analysis.

Who has the responsibility of intelligence assessment and analysis

  • The principal responsibility for intelligence assessment and analysis concerning China, rests with the National Security Council Secretariat (NSCS) and India’s external intelligence agency, the Research and Analysis Wing (R&AW).
  • To a lesser extent, it remains with the Defence Intelligence Agency.
  • The decision of the NSCS to dismantle the Joint Intelligence Committee has contributed to a weakening of the intelligence assessment system.
  • In the case of the R&AW, lack of domain expertise, and an inadequacy of China specialists might also have been a contributory factor.

Adverse impact of certain policy measures

  •  The preference given recently to Summit diplomacy over traditional foreign policy making structures proved to be a severe handicap.
  • Summit diplomacy cannot be a substitute for carefully structured foreign office policy making.
  • Currently, India’s Summit diplomacy has tended to marginalise the External Affairs Ministry with regard to policy making, and we are probably paying a price for it.
  • As it is, the Ministry of External Affairs’s (MEA) stock of China experts seems to be dwindling.
  • And MEA’s general tilt towards the U.S. in most matters, has resulted in an imbalance in the way the MEA perceives problems and situations.

Conclusion

Along with the other factors, India should also focus on intelligence analysis and interpretation and make sure there are enough China experts in the MEA.

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Foreign Policy Watch: India-SAARC Nations

Reimagining South Asian boundaries

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 2- Regional cooperation in South Asian countries.

State-centric politics is the issue that plagues the regional cooperation in the region. But the consequences for the lives, livelihoods and the well-being of the people located at the edges of nation-states are overlooked. This issue is discussed in this article.

State plays central role in disputes

  • One of the major problems of South Asian politics is that it has to flow from within a state-centric paradigm.
  • This state-centrism has given the state structure the propriety to be the sole arbiter of disputes.
  • It is the state that articulates, defines, and represents “national” interests in negotiations with other states.
  • States in South Asia places importance on political boundaries as the “natural” shield even in the arbitration of South Asian affairs.
  • This approach happens to be the dominant South Asian pattern.
  • In this approach territorial boundaries are valued more than lives, livelihoods and the well-being of the people located at the edges of nation states.
  • “Patriotism” looms large as and when inter-state relationships are viewed through the statist lens.
  •  Hostility, real or imagined, is used as the governing principle in the arbitration of territorial disputes across South Asia.

Lack of regional identity

  • Basically, the term “region” seems to be a contested idea in a South Asian context.
  • This is because none of the South Asian states has ever recognised and respected the idea of regional identity or regional politics.
  • They have been wary of such natural division in politics.
  • Given that this is a reality, how could one even think of South Asia as a region to reckon with?

South Asia as region of regions

  • One must understand that South Asia is perhaps the most natural regional grouping of states around the world.
  • And, at the same time, it is also the most difficult and contested grouping.
  • South Asia needs to be rethought, not as a region of states, but as a region of regions.
  • As such it demonstrates itself more as a borderland that needs to be cultivated out of contact zones.
  • Such contact zone exists beyond the limits of territorial boundaries shared by the member-states.

So, how this applies to India-Nepal border dispute?

  • There is a need to go beyond the popular debates revolving around such “troubling” questions such as: how much area has been “encroached” upon by which state and on what basis.
  • Such questions appear to be “normal” in the way a “statist paradigm” deals with the issue.
  • To those who are to maintain their lifeworld at those zones these issues are troubling.

Interconnected (fluid) life

  • South Asian life, essentially at the edges of the nation state, is bound to be fluid.
  • This is because the boundary, which confirms the territorial limits of a nation state, is at the same time the affirmed threshold of another nation state.
  • In a certain sense, the people living at the edges of nation states within South Asia do not actually belong to any of the two nation states.
  • Or in other words, they belong to both the states at the same time.
  • Plurality, differences and inclusivity bring coherence to borderland ontology.
  • They defy the logic of singular, unifying, exclusive identities that the nation states privilege.

Implications for regional cooperation

  • Unless both India and Nepal agree to see the reality beyond the gaze of the statist paradigm, they would harm regional experiments such as the BIMSTEC or the Bangladesh, Bhutan, India, Nepal (BBIN) sub-regional initiative.
  • South Asian states need to realise the difference between “regional cooperation” merely as advocacy and as an issue that demands self-approval and self-promotion.
  • South Asian countries may claim success on regional cooperation while closing all doors of recognising difference and mutual tolerance.
  • Powerful countries operating within and beyond the orbit of South Asia might become successful in establishing their control.
  • To establish control these countries may use the token of “regional cooperation” as an issue of realpolitik.

Consider the question “South Asia is perhaps the most natural regional grouping of states around the world, yet it is also the most difficult and contested grouping. Comment.”

Conclusion

Region and regional identity are not just issues of “realpolitik” in South Asia; rather, the need is to “officially” accommodate this rather naturally drafted way of doing politics, if we are genuinely concerned about South Asian geopolitics.

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RBI Notifications

Governance of the commercial banks

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Companies Act 2013

Mains level: Paper 3- Governance issue in the banks

This article discusses the nitty-gritty of the recently released discussion paper by the RBI on governance. Governance in the commercial bank has been in the news following the failures of some banks.

Discussion paper by RBI

  • Recently RBI released a discussion paper on ‘Governance in Commercial Banks in India’.
  • Recently there have been high-profile instances involving governance failures in certain banks.
  • These instances have called into question the adequacy of the existing legal regime for ensuring good governance in commercial banks.
  • Internationally, the question of governance norms in banks is treated differently given the complex nature of functions performed by banks in comparison to other businesses.
  • Functions of the banks make them critical for allocation of resources in the economy, protection of consumer interests and maintenance of financial stability.

Objectives of the discussion paper

  • The stated objective of the discussion paper is to align the current regulatory framework on bank governance with global best practices.
  • Best practices include the guidelines issued by the Basel Committee on Banking Supervision and the Financial Stability Board.

Current regulatory framework

  • To this end, RBI adopts international standards for bank governance into the general corporate governance framework in India.
  • This general governance framework comprises the Companies Act, 2013, and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Requirements, 2015.
  • These governance norms focus on the responsibilities of the board of directors, board structure and practices.
  • And it also includes aspects of risk management, internal audit, compliance, whistle-blowing, vigilance, disclosure and transparency.

Issue of connection between management and owner

  • RBI also constituted an internal working group to review the extant regulatory guidelines relating to ownership and control in private sector banks.
  • This group is expected to submit its report by September 30, 2020.
  • But the assumption that deeper connections between the management and the owners necessarily lead to mismanagement needs to evaluated carefully and recalibrated to ensure balanced reforms.
  • The governance risks attributable to such connections might be relevant for government-owned banks as well.

Key recommendations in the paper

  • (1) The majority of a commercial bank’s board must comprise of independent directors.
  • This is a standard higher than that prescribed under the Companies Act and the SEBI Regulations.
  • (2) The chairperson of the board must be an independent director.
  • (3) Chairpersons of crucial board committees (the audit committee, the risk management committee and the nomination and remuneration committee) must be independent directors who are not chairpersons of any other board committee.
  • (4) The tenures of non-promoter CEOs and WTDs should be limited to 15 years.

Way forward

  • In order to make the reform effective, the appointment process for independent directors also needs to be re-evaluated to limit the role of controlling-shareholders.
  • The liability regime for directors on the boards of banking companies should also be revisited to balance the rights and liabilities of the directors.
  • The efficacy of implementation of norms as prescribed will depend on adequate enforcement.
  • The findings of the report of the working group have to be considered to formulate a comprehensive and effective governance framework for commercial banking in India.

Consider the question “Given the complex nature of functions performed by the banks in comparison to other businesses subjecting them to stricter norms of governance is necessary. In light of this examine the adequacy of existing governance norms and suggest ways to improve them.”

Conclusion

RBI must exercise caution to ensure that the reforms balance the interests of all the stakeholders and do not come at the cost of discouraging investments and entrepreneurship in the Indian banking industry.

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Oil and Gas Sector – HELP, Open Acreage Policy, etc.

Why India is producing less and less oil?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: OALP

Mains level: India's oil sector

India’s crude oil production fell 7.1% in May 2020 compared to May 2019 on the back of low demand due to the Covid-19 pandemic.

Practice question for mains:

Q.Discuss the impact of Covid-19 pandemic on the global crude oil dynamics.

Crude oil exploration in India

  • Crude oil production in India is dominated by two major state-owned exploration and production companies, ONGC and Oil India.
  • These companies are the key bidders for crude oil block auctions and end up acquiring most of the blocks that are put up for auction in India.

Falling production

  • Domestic production of crude has been falling every year since FY 2012.
  • This has led to a steady climb in the proportion of imports in domestic crude oil consumption from 81.8% in 2012 to 87.6% in 2020.

Why is production falling?

  • Most of India’s crude oil production comes from ageing wells that have become less productive over time.
  • A lack of new oil discoveries in India coupled with a long lead time to begin production from discovered wells has led to a steady decline in India’s crude oil production making dependency on imports.
  • The output of these ageing wells is declining faster than new wells can come up according to experts.
  • Domestic exploration companies are attempting to extend the life of currently operational wells.

Why are there not more private players?

  • There has been a lack of interest in exploration and production in India from major private players, particularly those based abroad.
  • According to experts, this is because of long delays in the operationalization of production even after an oil block is allotted due to delays in approvals.
  • Some of the key approvals which are required to begin production include environmental clearances and approval by the Directorate General of Hydrocarbons after the allottee completes a seismic survey and creates a field development plan.

What policy changes could help?

  • Existing public and private sector players have asked for reduced levies of oil production including oil cess, royalties, and profit petroleum especially when crude oil prices are below $45/barrel.
  • Experts say the requirement to pay royalties to the government at low crude prices can make it unviable for these companies to invest in further exploration and production.

OALP could help

  • The government introduced the Open Acreage Licensing Programme (OALP) in 2019 to allow companies to carve out blocks that they are interested in and with lower royalties and no oil cess.
  • However, existing players are calling for a relaxation of royalties and oil cess on block allotted under previous policies.
  • The Chinese government offered a floor price to oil producers insulating them somewhat from any sharp falls in international crude prices.
  • This kind of policy at least allows for a company to have a fixed worst-case scenario for the sale of crude oil attracts more investment in exploration and production.

Back2Basics: OALP

  • The OALP, a part of the government’s Hydrocarbon Exploration and Licensing Policy (HELP), gives exploration companies the option to select the exploration blocks on their own, without having to wait for the formal bid round from the Government.
  • The company then submits an application to the government, which puts that block up for bid.
  • OALP offers single license to explore conventional and unconventional oil and gas resources to propel investment in and provide operational flexibility to the investors.

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Wildlife Conservation Efforts

New rules to regulate exotic animal trade

Note4Students

From UPSC perspective, the following things are important :

Prelims level: CITES

Mains level: Illict wildlife trade and its prevention

The Environment Ministry’s wildlife division has introduced new rules to regulate the import and export of ‘exotic wildlife species’.

Practice questions for mains:

Q.What are Zoonotic Diseases? Discuss how the illicit trade in wildlife has resulted in the spread of zoonotic diseases of the scale of the ongoing COVID-19?

Which exotic species are these new regulations talking about?

  • The Wildlife Crime Control Bureau is an organisation that is tasked with monitoring illegal trade.
  • The advisory says ‘exotic live species’ will cover animals under Appendices I, II and III of the Convention on International Trade in Endangered Species (CITES) of Wild Fauna and Flora.
  • It will not include species from the Schedules of the Wild Life (Protection) Act, 1972.

What are the new rules?

  • Currently, it is the Directorate-General of Foreign Trade, Ministry of Commerce that oversees such trade.
  • Under the new rules, owners and possessors of such animals and birds must also register their stock with the Chief Wildlife Warden of their States.
  • Officials of the Wildlife Department will also prepare an inventory of such species and have the right to inspect the facilities of such traders to check if these plants and animals are being housed in inhumane conditions.
  • Additionally, stockists will have six months to declare their stock.

Why such a move?

  • The illegal trade is estimated to generate revenues of up to $23 billion a year, a/c to FATF.
  • India continues to battle wildlife crime, with reports suggesting that many times such species are available for trade on online market places.

Also read:

Guidelines for Import of Exotic Species


Back2Basics: CITES

  • CITES stands for the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
  • It is as an international agreement aimed at ensuring “that international trade in specimens of wild animals and plants does not threaten their survival”.
  • It was drafted after a resolution was adopted at a meeting of the members of the International Union for Conservation of Nature (IUCN) in 1963.
  • It entered into force on July 1, 1975, and now has 183 parties.
  • The Convention is legally binding on the Parties in the sense that they are committed to implementing it; however, it does not take the place of national laws.
  • India is a signatory to and has also ratified CITES convention in 1976.

CITES Appendices

  • CITES works by subjecting international trade in specimens of selected species to certain controls.
  • All import, export, re-exports and introduction from the sea of species covered by the convention has to be authorized through a licensing system.

It has three appendices:

  • Appendix I includes species threatened with extinction. Trade-in specimens of these species are permitted only in exceptional circumstances.
  • Appendix II provides a lower level of protection.
  • Appendix III contains species that are protected in at least one country, which has asked other CITES Parties for assistance in controlling trade.

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Global Geological And Climatic Events

What is ‘Last Glacial Maximum’?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Last Glacial Maximum

Mains level: Nature induced Climate Change

Researchers analysed simulations of this past climate and predicted that the ongoing climate change could reawaken an ancient climate pattern of the Indian Ocean Region (IOR).

Try this question from CSP 2017:

Q.With reference to ‘Indian Ocean Dipole (IOD)’, sometimes mentioned in the news while forecasting Indian monsoon, which of the following statements is/are correct?

1. IOD phenomenon is characterized by a difference in sea surface temperature between tropical Western Indian Ocean and tropical Eastern Pacific Ocean.

2. An IOD phenomenon can influence El Nino’s impact on the monsoon.

Select the correct Option using the code given below:

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

The Last Glacial Maximum

  • The Last Glacial Maximum (LGM) was the most recent time during the Last Glacial Period that ice sheets were at their greatest extent.
  • Vast ice sheets covered much of North America, Northern Europe, and Asia and profoundly affected Earth’s climate by causing drought, desertification, and a large drop in sea levels.
  • Growth of ice sheets commenced 33,000 years ago and maximum coverage was between 26,500 years and 19–20,000 years ago, when deglaciation commenced in the Northern Hemisphere.
  • It caused an abrupt rise in sea level.

Shells predict IOR climate variability

  • By studying microscopic zooplankton called foraminifera, the team had published a paper in 2019 which first found evidence from the past of an Indian Ocean El Niño.
  • Foraminifera builds a calcium carbonate shell, and studying these can tell us about the properties of the water in which they lived.
  • The team measured multiple individual shells of foraminifera from ocean sediment cores and was able to reconstruct the sea surface temperature conditions of the past.
  • The Indian Ocean has the capacity to harbour much larger climate variability than observed during the last few decades or a century.

Lessons to learn

  • There are many lessons to be learnt from this cooler period about our warmer future.
  • As it is, under present-day conditions, changes in the Indian Ocean Dipole and the El Niño–Southern Oscillation strongly affect Indian Monsoon variability from year to year.
  • If the hypothesized ‘equatorial mode’ emerges in the near future, it will pose another source of uncertainty in rainfall prediction and will likely amplify swings in monsoon rainfall.
  • It could bring more frequent droughts to East Africa and southern India and increased rainfall over Indonesia.

Back2Basics

What is the Indian Ocean Dipole? Explain its connection with the Indian monsoons

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Wildlife Conservation Efforts

Species in news: Jungle Fowl

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Jungle Fowl

Mains level: NA

A recent study by scientists has revealed new details about the earliest domestication of chicken from the Jungle Fowl.

Try this question from CSP 2012:

Q.What is the difference between the antelopes’ Oryx and Chiru?

(a) Oryx is adapted to live in hot and arid areas like Africa and Arabia whereas Chiru is adapted to live in steppes and semi-desert areas of cold high mountains of Tibetan Plateau.

(b) Oryx is poached for its antlers whereas Chiru is poached for its musk

(c) Oryx exists in western India only whereas Chiru exists in northeast India only.

(d) None of the statements (a), (b) and (c) given above is correct.

Jungle Fowl

  • The DNA sequencing of 863 genomes has shown the first domestication of chicken occurred in southwestern China, northern Thailand and Myanmar.
  • The study involved sequencing of genomes from all four species of the genus Gallus, five subspecies of Red Jungle Fowl and various domestic chicken breeds collected worldwide.
  • It revealed single domestication from Red Jungle Fowl sub-species Gallus spadiceous.
  • The study also demonstrated that all five Red Jungle Fowl sub-species were genetically differentiated from each other approximately 50,000 years ago much earlier than domestication.
  • The results contradicted the earlier claim that chickens were domesticated in northern China and the Indus Valley.

Domestication of Chicken

  • The question of domestication of chickens has intrigued scientists for centuries and has been the subject of debate.
  • Charles Darwin postulated that chickens were domesticated around 4,000 B.C. from a single ancestor, Red Jungle Fowl in the Indus Valley.
  • An important study published earlier from Uppsala University claimed the Grey Jungle Fowl had contributed to chicken domestication.
  • With this, a couple of studies from India, China and other South-Asian countries have argued the monophyletic origin of chicken.

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