From UPSC perspective, the following things are important :
Prelims level: Silicosis and its health implications
Why in the News?
UK researchers suggest stricter daily silica dust exposure limits in industries could save 13,000 lives as per British Medical Journal Thorax.
What is Silicosis?
Silicosis is a lung disease that results in the hardening of the lungs. It is caused by inhaling silica dust or crystals, commonly found in soil, sand, concrete, mortar, granite, and artificial stone.
Silicosis is a chronic disease that develops slowly, often after 10 to 20 years of exposure.
Silicosis can lead to other severe conditions, including lung cancer, tuberculosis, and chronic obstructive pulmonary disease (COPD).
Note: Silicosis is a recognized disease under the Mines Act (1952) and the Factories Act (1948).
Causes of Silicosis:
Workers in industries such as construction, mining, oil and gas extraction, kitchen engineering, dentistry, pottery, and sculpting are at high risk.
The cutting, drilling, or breaking down of materials containing silica releases fine dust into the air.
As per National Programme on Elimination of Silicosis in India
Remedies for Silicosis:
Currently, there is no cure for silicosis, and treatment focuses on managing symptoms and preventing complications.
Preventive measures:
Water Suppression Techniques: Using water or foam to suppress dust at the source.
Proper Ventilation: Ensuring adequate airflow in work environments to reduce dust accumulation.
Personal Protective Equipment (PPE): Providing workers with masks and respirators that filter out fine particles.
Regular Monitoring: Implementing regular health checks for workers and monitoring air quality in workplaces.
Case study related to reducing Silica Dust Exposure
United States: Implemented stricter regulations on silica dust, resulting in a significant reduction in silicosis cases.
Australia: Banned the use of engineered stone due to its propensity to release high levels of silica dust when cut or drilled.
PYQ:
[2019] Why is there a great concern about the ‘microbeads’ that are released into environment?
(a) They are considered harmful to marine ecosystems.
(b) They are considered to cause skin cancer in children.
(c) They are small enough to be absorbed by crop plants in irrigated fields.
(d) They are often found to be used as food adulterants.
From UPSC perspective, the following things are important :
Prelims level: Trichophyton indotineae
Why in the News?
The increase in drug-resistant fungal infections, especially Trichophyton indotineae, is becoming a major health problem in India.
What Is Trichophyton Indotineae?
Trichophyton indotineae is a dermatophyte commonly known as ringworm or jock itch.
First identified in India, this fungus has now spread to several countries worldwide.
It belongs to genotype VIII within the T. mentagrophytes/T. interdigitale species complex, found in regions including Australia and Oman.
Factors causing its spread
Patients often present with persistent, treatment-resistant rashes that can be mistaken for eczema or other skin conditions.
Misdiagnosis leads to the use of ineffective treatments, prolonging patient suffering and allowing the infection to worsen.
Trichophyton indotineae has shown resistance to terbinafine due to genetic mutations, with growing resistance to itraconazole also a concern.
The unregulated sale of steroid-containing combination creams further complicates treatment efforts.
Treatments available
Alternative to terbinafine and Itraconazole are available but often come with significant side effects, requiring close monitoring by healthcare providers.
Integrating comprehensive skin care regimens can enhance treatment efficacy, including maintaining skin hydration and using barrier creams.
PYQ:
[2014] Lichens, which are capable of initiating ecological succession even on a bare rock, are actually a symbiotic association of:
From UPSC perspective, the following things are important :
Prelims level: Buddhadeb Bhattacharya (1944-2024) and His contributions
Why in the News?
Former CM of West Bengal and leader Buddhadeb Bhattacharya passed away at 80.
Who was Buddhadeb Bhattacharya?
Bhattacharya was a politician who served as CM of West Bengal from 2000 to 2011.
He was known for his attempts to modernize and industrialize West Bengal while navigating the challenges of maintaining communist ideology.
In 2022, Bhattacharya was awarded Padma Bhushan by the Indian government, which he declined, citing his political principles.
Key Contributions:
Category
Details
Political Reforms
Attempted to reduce the influence of powerful trade unions in the state, particularly in the industrial sector, to attract investments and improve work culture.
Social-Cultural Reforms
Played a key role in establishing the Kolkata International Film Festival and promoted Bengali literature.
Authored several books and translated works of Gabriel Garcia Marquez and Vladimir Mayakovsky into Bengali, enriching the state’s cultural heritage.
Introduced measures to eliminate corruption in school recruitments by ensuring all hiring was conducted through transparent exams.
Initiated reforms to integrate mainstream subjects into madrassa education.
Economic Reforms
Led efforts to industrialize West Bengal by attracting investments in IT, steel, and special economic zones (SEZs), including the Tata Nano project in Singur.
Faced significant opposition and protests in Singur and Nandigram over land acquisition, which ultimately contributed to the political decline of the Left Front.
PYQ:
[2011] Karl Marx explained the process of class struggle with the help of which one of the following theories?
Lalit Kala Akademi, National Gallery of Modern Art
Objective
Enhance New Delhi’s cultural and aesthetic outlook
Key Themes
Nature tributes, Natyashastra, Gandhi ji, Toys of India, Hospitality, Ancient knowledge, Naad (Primeval Sound), Harmony of Life, Kalpataru (Divine Tree).
Artist Participation
Over 200 visual artists; significant participation from women artists
Artforms included
Phad paintings (Rajasthan), Thangka painting (Sikkim/Ladakh), Miniature painting (Himachal Pradesh), Gond art (Madhya Pradesh), Tanjore paintings (Tamil Nadu), Kalamkari (Andhra Pradesh), Alpona art (West Bengal), Cheriyal painting (Telangana), Pichhwai Painting (Rajasthan), Lanjia Saura (Odisha), Pattachitra (West Bengal), Bani Thani Painting (Rajasthan), Warli (Maharashtra), Pithora Art (Gujarat), Aipan (Uttarakhand), Kerala Murals (Kerala), Alpana art (Tripura).
PYQ:
[2018] The well-known painting “Bani Thani” belongs to the:
From UPSC perspective, the following things are important :
Prelims level: Tiger Reserves in India;
Mains level: Reason for the declining population of Tigers;
Why in the News?
Facing a significant decline in its tiger population in recent years, Chhattisgarh on Wednesday approved a long-awaited proposal to establish a new tiger reserve, which will be the third largest in the country.
Process of Notification of Tiger Reserves
Proposal and Evaluation: The state government initiates the process by proposing an area to be designated as a tiger reserve. This proposal is then evaluated by the National Tiger Conservation Authority (NTCA).
Cabinet Approval: After NTCA’s recommendations, the state cabinet must approve the notification of the tiger reserve.
Integration of Areas: The Guru Ghasidas-Tamor Pingla Tiger Reserve integrates the existing Guru Ghasidas National Park and Tamor Pingla Wildlife Sanctuary, covering an area of 2,829 square kilometers.
Note: Once a tiger reserve is notified, it cannot be easily denotified. The Wildlife (Protection) Act, 1972, allows for denotification only under exceptional circumstances and with approval from the NTCA and the National Board for Wildlife.
About Guru Ghasidas-Tamor Pingla Tiger Reserve
It is Chhattisgarh’s fourth tiger reserve, following Indravati, Udanti-Sitanadi, and Achanakmar.
The reserve spans four districts: Manendragarh-Chirmiri-Bharatpur, Koriya, Surajpur, and Balrampur.
It aims to bolster conservation efforts and provide a protected habitat for tigers, thereby promoting eco-tourism and creating employment opportunities for local communities.
It aims to bolster conservation efforts and provide a protected habitat for tigers by Providing additional budgetary resources from the National Project Tiger Authority for its operations.
It would promote eco-tourism and create employment opportunities for local communities.
Tiger Reserves in India
As of June 2024, India has 55 tiger reserves. This number has increased from 9 reserves in 1973 when Project Tiger was initiated. India is home to around 75% of the global tiger population.
The latest addition to the list is the Dholpur-Karauli Tiger Reserve in Rajasthan, which is the 55th reserve established in the country.
These reserves are crucial for the conservation of the Bengal tiger, which is a keystone species in India’s ecosystems, and they collectively support around 80% of the world’s tiger population.
Madhya Pradesh has the highest number of tigers at 785, followed by Karnataka (563), Uttarakhand (560), and Maharashtra (444).
The initiative was taken by the Government:
Strengthening Legal Framework: The Wildlife (Protection) Act, 1972 provides a legal framework for tiger conservation, establishing national parks, wildlife sanctuaries, and critical tiger habitats. The 2006 amendment led to the creation of the National Tiger Conservation Authority (NTCA).
Anti-Poaching Measures:Special Tiger Protection Force (STPF) has been deployed in tiger reserves to combat poaching. Modern surveillance technologies like camera traps and drones are used to monitor tiger populations and deter poaching activities.
To avoid human-tiger conflict: As of 2023, 12,327 families from 173 villages have been successfully relocated from tiger reserves to reduce human-tiger conflict.
Way forward:
Undertake habitat restoration measures in the tiger reserves, including prey base management and removal of invasive species, to improve the quality of tiger habitats.
Deploy the Special Tiger Protection Force (STPF) in the newly notified Guru Ghasidas-Tamor Pingla Tiger Reserve to curb poaching.
Mains PYQ:
Q How does biodiversity vary in India? How is the Biological Diversity Act,2002 helpful in conservation of flora and fauna? (UPSC IAS/2018)
From UPSC perspective, the following things are important :
Prelims level: What is Weight Cutting?
Mains level: Issues related to Weight Cutting ;
Why in the News?
Wrestler Vinesh Phogat was disqualified from the Paris Olympics after the official weigh-in on Wednesday morning, before her scheduled gold medal bout in the evening, leaving her without a medal.
What is Weight Cutting?
Weight cutting is the process by which athletes systematically reduce their body weight before a competition. This typically involves a combination of dietary restrictions and intensive physical activity aimed at shedding a specific amount of weight, often over a period of weeks leading up to the event.
Wrestlers often employ extreme measures such as skipping meals, limiting water intake, and engaging in intense exercise, including sauna sessions and wearing heavy clothing to promote sweating. This can lead to rapid weight loss primarily through fluid loss.
Why Do Combat Athletes Cut Weight?
Combat sports like wrestling, boxing, and mixed martial arts (MMA) are organized by weight classes to ensure fair competition. Athletes aim to compete in lower weight classes to gain a size and strength advantage over their opponents, as they can often regain weight after the weigh-in.
By cutting weight, athletes believe they can compete against opponents who are lighter and potentially less strong, thus increasing their chances of success in the competition.
Should Weight Cutting Be Banned?
The practice of weight cutting poses significant health risks, including dehydration, electrolyte imbalances, and energy depletion, which can impair performance and lead to serious medical issues. Athletes may experience severe fatigue and reduced physical capabilities after extreme weight cuts.
There is an ongoing debate about whether weight cutting should be banned or regulated more strictly. Critics argue that the health risks outweigh the competitive advantages, while supporters maintain that it is a part of the sport’s culture and can be managed safely with proper guidance.
Some suggest that instead of banning weight cutting, sports organizations should implement better regulations and educate athletes about safe practices for weight management, including gradual weight loss and hydration strategies.
Way forward:
Implement Hydration Testing: Regular hydration tests can prevent severe dehydration, ensuring athletes remain within safe hydration levels.
Weight Class Monitoring: Monitor athletes’ weight throughout the training period to discourage rapid weight loss just before competition.
Set Minimum Weight Limits: Establish minimum weight thresholds based on athletes’ natural body weight to prevent extreme weight cuts.
Mains PYQ:
Q An athlete participates in the Olympics for personal triumph and the nation’s glory; victors are showered with cash incentives by various agencies, on their return. Discuss the merit of state-sponsored talent hunt and its cultivation as against the rationale of a reward mechanism as encouragement. (UPSC IAS/2014)
From UPSC perspective, the following things are important :
Prelims level: Challenges in the Himalayan region;
Why in the News?
The Teesta dam breach and Himachal floods highlight the urgent need to evaluate development projects based on their environmental impact, especially in fragile mountain regions.
What are the underlying issues in the cities of IHR?
Inadequate Planning Models: Planning institutions in the IHR often use models from the plains, which are ill-suited to the region’s unique conditions, leading to ineffective implementation and failures.
Human Resource Deficit: City governments in the IHR face a severe shortage of human resources, with staffing levels falling short by nearly 75%, hampering effective urban management.
Uncontrolled Urban Expansion: Cities are expanding into village peripheries, encroaching on common lands and natural resources, as seen in Srinagar, where built-up areas increased by 75.58% from 2000 to 2020, while water bodies shrank by 25%.
Environmental Strain:Urbanization, high-intensity tourism, and unsustainable infrastructure development are exacerbating environmental pressures in the IHR, further worsened by changing precipitation patterns and rising temperatures.
Financial Constraints: The IHR cities lack the capacity to generate capital for infrastructure needs, highlighting the need for the Finance Commission to address urban financing in this region, given the high costs and absence of industrial corridors.
What can be done?
Every town needs to be mapped, with layers identifying vulnerabilities from geological and hydrological perspectives. The planning process should involve locals and follow a bottom-up approach.
Consultant-driven urban planning processes should be shelved for Himalayan towns, with the urban design based on climate resilience.
Current intergovernmental transfers from the centre to urban local bodies constitute a mere 0.5% of GDP. This should be increased to at least 1% of GDP.
Himalayan towns must engage in wider conversations about sustainability, with the focus on urban futures being through robust, eco-centric planning processes involving public participation.
Case Study
Nainital: Integrated Development Plan
Nainital district in Uttarakhand implemented an Integrated Development Plan that aimed to balance urban growth with environmental conservation.
The plan involved mapping vulnerable areas, restricting construction in ecologically sensitive zones, and promoting sustainable tourism practices.
Community participation and awareness programs were also part of the initiative to ensure long-term sustainability.
Dharamshala: Green Building Norms
The Dharamshala Municipal Corporation in Himachal Pradesh has adopted green building norms for new constructions, focusing on energy efficiency, water conservation, and waste management.
The city has also invested in public transportation and pedestrian-friendly infrastructure to reduce vehicular emissions and promote sustainable mobility
Mains PYQ:
Q How can the mountain ecosystem be restored from the negative impact of development initiatives and tourism? (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Prelims level: Prevention of Cruelty to Animals (PCA) Act, 1960, and the Animal Birth Control (ABC) Rules;
Mains level: Supreme Court judgement on stray dogs;
Why in the news?
The Supreme Court ended the 15-year-old (Animal Welfare Board of India & Anr Versus People for Elimination of Stray Troubles & Ors) AWBI vs. PEST case on July 12, after the final hearing on May 9, sparking mixed reactions.
The Prevention of Cruelty to Animals (PCA) Act, 1960, and the Animal Birth Control (ABC) Rules are:
The PCA Act, 1960 was enacted by the Parliament of India to prevent the infliction of unnecessary pain or suffering on animals and to amend the laws relating to the prevention of cruelty to animals.
The PCA Act, 1960 and ABC Rules, 2001prohibit the killing of stray dogs and mandate sterilization as the only scientific and humane method of controlling stray dog populations.
The new ABC Rules, 2023 notified under the PCA Act, 1960 also prohibit wanton killing of stray dogs by municipalities and require them to follow sterilization.
The Act defines “animal” as any living creature other than a human being. It establishes the Animal Welfare Board of India to promote animal welfare.
Chapter III of the Act lists different forms of cruelty to animals that are banned, including those related to work animals, captivity, ownership, abuse, mutilation or killing.
Chapter IV deals with experiments on animals. While it does not make experiments unlawful for the advancement of knowledge, it allows the Board to advise the government to create a committee to control and supervise such experiments.
Chapter V outlines restrictions, procedures and offences related to performing animals. The Central Government can prohibit any animal from exhibition or training through notification.
Note: In 2022, the Ministry of Fisheries, Animal Husbandry and Dairying submitted a draft Prevention of Cruelty to Animals (Amendment) Bill 2022 for public comment. The draft includes 61 amendments to further clarify the law and make punishments more stringent.
The Supreme Court stated that the Central law (PCA Act 1960 and ABC Rules, 2023) which prohibits killing of stray dogs by local authorities remains the governing law of the land.
What the Supreme Court said on the ‘Duty of every Citizen’:
The Supreme Court capped off the judgment with the lines: “Compassion to all living beings, is the enshrined Constitutional value and mandate, and cast obligation on the authorities to maintain.”
This refers to Article 51A(g) of the Constitution of India which states: “It shall be the duty of every citizen of India to protect and improve the natural environment including forests, lakes, rivers, and wildlife and to have compassion for living creatures.”
The court emphasized that Citizens should avoid unscientific and cruel methods like killing stray dogs and instead choose the scientific and humane method of sterilization.
Issues due to stray dogs in India:
Population: India has an estimated 60 million stray dogs, making it the country with the highest number of stray dogs globally.
Rabies Incidence: India accounts for 36% of global rabies deaths and 65% of rabies deaths in the South-East Asia region.
Between 2012 and 2022, the National Rabies Control Program reported 6,644 clinically suspected cases of rabies in humans.
Dog Bite Cases: Reports indicate that major cities have seen alarming numbers of dog bite incidents. For example, Delhi’s Safdarjung Hospital and Ram Manohar Lohia Hospital recorded nearly 48,000 dog bite cases in just six months. In Kerala alone, there were over 1.9 lakh dog bite cases last year, with 21 deaths attributed to rabies.
Way forward:
Enhanced Public Awareness and Education: Need to implement nationwide campaigns to educate the public on responsible pet ownership, the importance of sterilization, and the humane treatment of stray dogs.
Strengthening Enforcement of Existing Laws: Need to ensure that municipalities and local authorities are adequately trained and funded to implement the ABC Rules effectively.
From UPSC perspective, the following things are important :
Prelims level: Prevention of Money Laundering Act, 2002 (PMLA);
Mains level: Review power of Supreme Court;
Why in the news?
The Supreme Court has postponed its review of the decision to uphold key provisions of the Prevention of Money Laundering Act, 2002 (PMLA) to August 28.
Prevention of Money Laundering Act, 2002 (PMLA)
The Prevention of Money Laundering Act, 2002 (PMLA) is a crucial legislative framework in India aimed at combating money laundering and related financial crimes.
The PMLA was enacted by the Parliament of India and came into force on July 1, 2005. It was introduced to prevent money laundering and provide for the confiscation of property derived from or involved in money laundering.
The main objectives of the PMLA are:
To prevent and control money laundering.
To confiscate and seize property obtained from laundered money.
To address issues connected with money laundering in India.
What is the Case?
On July 27, 2022, the Supreme Court upheld key provisions of the Prevention of Money Laundering Act, 2002 (PMLA) in the case of “Vijay Madanlal Choudhary v. Union of India”.
The 540-page ruling accepted the government’s arguments on all challenged aspects, including reversing the presumption of innocence for bail, passing amendments as a Money Bill, and defining the Enforcement Directorate’s (ED) powers.
On August 25, 2022, a different three-judge bench agreed to hear a review petition filed by Congress MP Karti Chidambaram. The petition raised concerns about at least two issues from the Madanlal decision.
Whatare the Grounds for Review?
The Supreme Court’s verdict in Madanlal upheld stringent bail conditions for economic offences, imposing a reverse burden of proof on the accused.
Petitioners argue that, without essential documents like an FIR, charge sheet, case diary, and prosecution documents, an accused cannot adequately present their case.
The Madanlal verdict upheld Section 50 of the PMLA, allowing ED officials to record statements under oath, admissible in court. It distinguished ED officers from police officers, classifying their investigations as “inquiries.” Petitioners argue that the verdict overlooked provisions granting penal powers to the ED.
How is a Judgment Reviewed?
The Supreme Court can review its judgments or orders under Article 137 of the Constitution.
A review petition must be filed within 30 days of the judgment. Typically, review petitions are heard through written submissions (“circulation”) by the same judges who passed the original verdict, rather than in open court.
Reviews are granted on narrow grounds to correct grave errors causing a miscarriage of justice. One common ground is “a mistake apparent on the face of the record,” which must be glaring and obvious, such as reliance on invalid case law.
Way forward:
Enhanced Transparency and Documentation: To address concerns about the adequacy of case presentation by the accused, there should be a mandate for providing all essential documents such as FIRs, charge sheets, case diaries, and prosecution documents to ensure a fair trial process.
Clarification of ED’s Powers and Procedures: Amendments to the PMLA should clearly define the scope and limits of the Enforcement Directorate’s powers, ensuring that ED officers are given appropriate procedural guidelines and oversight mechanisms to prevent misuse of penal powers and uphold due process.
From UPSC perspective, the following things are important :
Mains level: Grid System in Vulnerable Areas;
Why in the news?
The Jammu region has faced severe security issues recently, exacerbated by troop redeployment to the LAC. To address this, around 3,500 additional troops and Special Forces were deployed.
Present Context of J&K
Security Concerns: The Jammu region has seen a resurgence in terrorist activities, with security forces suffering significant losses. The situation has deteriorated, particularly following the redeployment of troops to the Line of Actual Control (LAC) after the Galwan incident in June 2020.
Increased Military Presence: In response to the rising threats, additional troops, including Special Forces and Assam Rifles, have been inducted into the region to bolster counter-terrorism operations.
Following the abrogation of Article 370 in 2019, there has been a strategic shift in militancy from Kashmir to Jammu, with militants adapting their tactics and increasing their operational activities in districts like Reasi, Rajouri, and Poonch.
Need to Establish the Grid System in Vulnerable Areas
Establishing a counter-terrorism grid involves deploying military units strategically in vulnerable areas to dominate potential terrorist movements. This requires thorough threat assessments based on terrain, local population inclinations, and historical data.
The grid system emphasizes the importance of winning the trust of the local population through community engagement, which is crucial for gathering intelligence on terrorist activities.
Challenges
Integration of New Troops: Newly inducted troops face the challenge of quickly orienting themselves to the local terrain and population dynamics.
Divided Local Population: The local population is divided into subsets that either support the state, support terrorists, or remain neutral.
Gaining the support of the neutral majority is critical for the success of counter-terrorism efforts.
Operational Control: Recent trends show a shift in operational control from battalion-level commanders to higher command levels, which can hinder effective and timely responses to emerging threats.
About Operation Dudhi
Historical Context: Operation Dudhi, conducted in May 1991 by the 7 Assam Rifles, is remembered as a successful counter-terrorism operation in the Chowkibal area. It showcased the effectiveness of battalion-level command in conducting operations.
Lessons Learned: The operation highlighted the importance of allowing commanding officers to maintain control over their units.
Recent trends of centralizing control may undermine operational effectiveness and responsiveness.
Need for Integrated Deployment: The success of future operations requires that newly inducted troops be deployed as integral units under existing command structures, rather than in a fragmented manner, to enhance operational coherence and effectiveness.
Way forward:
Enhance Human Intelligence Networks: It is crucial to build robust human intelligence networks by integrating local informants and community members into counter-terrorism efforts.
Integrated Deployment of Forces: Newly inducted troops should be strategically integrated with existing units to create a cohesive counter-terrorism grid. This approach will facilitate knowledge sharing and operational synergy, allowing new troops to quickly acclimatize to the local environment and build relationships with the community.
Explained | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Prelims level: What is Yen carry trade?
Mains level: Why is it unwinding right now?
Why in the news?
The global stock and bond markets, especially Japan’s, are experiencing turmoil due to the unwinding of the immensely popular yen carry trade.
What is Yen carry trade?
The yen carry trade is a popular currency trading strategy that involves borrowing Japanese yen at low interest rates and using the funds to invest in higher-yielding assets denominated in other currencies, with the goal of profiting from the interest rate differential.
Why is it unwinding right now?
Strengthening Yen: The Japanese yen has appreciated significantly, rising over 3% against the dollar after the Bank of Japan (BoJ) raised interest rates to 0.25% and announced a reduction in bond purchases. This strengthening of the yen diminishes the profitability of the carry trade, which relies on a weaker yen to remain viable.
Interest Rate Changes: Expectations of imminent interest rate cuts by the U.S. Federal Reserve have contributed to the dollar’s weakness, further impacting the carry trade. As the interest rate differential narrows, the incentive to maintain yen carry positions decreases.
How does it work?
Mechanism: The yen carry trade involves borrowing yen at low interest rates and converting it into higher-yielding currencies. Investors use the borrowed yen to purchase assets in currencies that offer better returns, such as U.S. dollars or Australian dollars.
Investors typically aim for annualized returns of around 5% to 6% on dollar-yen carry trades, which is the difference between U.S. and Japanese interest rates. The strategy can be lucrative as long as the yen does not appreciate significantly against the currencies in which the investments are made.
How did it begin?
The yen carry trade can be traced back to 1999 when Japan lowered its policy rates to zero following an asset price bubble burst. This led Japanese investors to seek better returns in international markets, effectively turning Japan into the world’s largest creditor nation.
The contemporary form of the carry trade gained prominence in 2013 under Prime Minister Shinzo Abe’s quantitative easing policies, coinciding with rising U.S. rates and a depreciating yen. This trend intensified in 2022 and 2023 as the Federal Reserve raised rates rapidly while the Bank of Japan maintained negative short-term rates.
How large Is It?
The estimated size is about $350 billion in short-term external loans by Japanese banks attributed to yen-funded carry trades. However, this figure may not fully capture the extent of the trades, as it could include commercial transactions or loans to foreign businesses.
The actual size of yen carry trades could be larger due to the leverage used by hedge funds and computer-driven funds.
Is it coming to an end?
The Bank of Japan has recently started raising rates, which has led to a stronger yen. As a result, the yield gap between Japanese and other currencies has narrowed, diminishing the profitability of carry trades.
The appreciation of the yen (by about 13% in a month) has prompted leveraged investors to unwind their positions, leading to a sell-off in global stock and bond markets. This unwinding is driven by the need to repay yen loans as the currency strengthens, causing further declines in asset prices internationally.
Conclusion: The yen carry trade is unwinding due to the strengthening yen and narrowing interest rate differentials. As the yen appreciates, profitability decreases, prompting investors to exit positions, leading to global market sell-offs. This trend signifies a shift in monetary policies and changing economic conditions affecting currency trading strategies.
From UPSC perspective, the following things are important :
Prelims level: Nandini Sahakar Yojana
Why in the News?
The Minister of Cooperation has provided some information about the Nandini Sahakar Yojana.
NCDC has cumulatively disbursed financial assistance amounting to Rs. 6426.36 crore for the development of cooperative societies exclusively promoted by women across the country.
About Nandini Sahakar Yojana
The Nandini Sahakar Scheme was initiated by the National Cooperative Development Corporation (NCDC) in 2010.
It is a women-focused framework providing financial assistance, project formulation, hand-holding, and capacity development.
The scheme aims to assist women cooperatives in undertaking business model-based activities under the purview of NCDC.
Features of the Scheme
Any cooperative society with at least 50% womenas primary members and a minimum of three months in operation is eligible to apply.
Assistance is provided in the form of credit linkage for infrastructure term loans and working capital, along with subsidies or interest subvention from other government schemes.
There is no minimum or maximum limit on financial assistance for projects by women cooperatives.
NCDC offers a 2% interest subventionon its rate of interest on term loans for new and innovative activities.
A 1% interest subvention is provided on term loans for all other activities, resulting in lower borrowing costs for women cooperatives.
“Osteoporosis” is a condition where bones become weak and brittle, with over 10 million cases annually in India.
It predominantly affects ageing women due to decreased oestrogen levels post-menopause.
A recent study in Nature by researchers at the Universities of California uncovered a brain-derived hormone, CCN3, which increases bone mass in postpartum lactating mothers.
What is Oestrogen?
Oestrogen is a primary female sex hormone essential for reproductive and sexual development.
It regulates the menstrual cycle and is crucial for the development of secondary sexual characteristics like breast development.
Oestrogen also plays a vital role in maintaining bone density and cardiovascular health.
It is produced mainly in the ovaries but also in smaller amounts by the adrenal glands and fat tissue.
The hormone influences various tissues, including the brain, heart, skin, and bones.
Imbalances in oestrogen levels can lead to various health issues, such as osteoporosis and cardiovascular disease.
Role of Oestrogen in Bone Growth
Oestrogen is crucial for bone growth and formation, acting as a manager signalingthe bone construction crew.
During breastfeeding, oestrogen production dropsto focus on milk production, which should weaken bones.
Contrary to expectations, mothers’ bones become stronger to meet their babies’ high calcium demands.
How does the ‘Hidden’ Hormone Keep Mice Mothers’ Bones Healthy?
During breastfeeding, the body suppresses oestrogen production to focus on milk production, which should weaken bones.
Despite low oestrogen, mothers’ bones strengthen.
Researchers found that KISS1 neurons in the hypothalamus (a part of the brain) release the CCN3 hormone, which helps maintain and even increase bone mineralisation.
Experimental Findings:
In experiments with genetically modified mice, those lacking the oestrogen receptor alpha still maintained healthy bones due to CCN3.
When CCN3 wasintroduced to skeletal stem cells, it significantly increased bone formation, showing its potential to strengthen bones independently of oestrogen.
PYQ:
[2019] ‘RNA interference (RNAi)’ technology has gained popularity in the last few years. Why?
It is used in developing gene silencing therapies.
It can be used in developing therapies for the treatment of cancer.
It can be used to develop hormone replacement therapies.
It can be used to produce crop plants that are resistant to virtual pathogens.
Select the correct answer using the code given below.
Prelims Only | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Evolution of Cooperatives in India, Various Schemes
Why in the News?
The Ministry of Cooperation, since its inception on 6th July 2021, has taken many initiatives to strengthen and deepen the cooperative movement at the grassroots level.
What is a Co-operative?
A cooperative is “an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned enterprise”.
Cooperatives are democratically owned by their members, with each member having one vote in electing the board of directors.
Evolution of Cooperatives in India:
Pre-Independence Era:
First Cooperative Act (1904): Enacted after the Indian Famine Commission (1901) suggested cooperative credit societies to tackle rural debt.
Cooperative Societies Act (1912): Amended the 1904 Act to include non-credit societies and support the cooperative movement.
Maclagan Committee (1915): Evaluated the cooperative movement’s economic and financial stability.
Montague-Chelmsford Reforms (1919): Made cooperation a provincial subject, boosting regional cooperative initiatives.
Post Economic Depression (1929): Various committees in regions like Madras, Bombay, Travancore, Mysore, Gwalior, and Punjab restructured cooperatives.
Gandhian Influence: Gandhi promoted cooperatives for a socialistic society and decentralization. Established the Phoenix Settlement and Tolstoy Farm as cooperative settlements in South Africa.
Post-Independence Era:
First Five-Year Plan (1951-56): Emphasized cooperatives for comprehensive community development.
Multi-State Co-operative Societies Act (2002): Regulated the formation and functioning of multi-state cooperatives.
Amendment (2022): Introduced the Co-operative Election Authority to oversee board elections in multi-state cooperatives.
97th Constitutional Amendment (2011): Made the right to form cooperatives a fundamental right under Article 19.
Added Part IX-B to the Constitution, establishing “The Co-operative Societies” (Articles 243-ZH to 243-ZT).
Empowered Parliament to legislate for multi-state cooperative societies and state legislatures for other cooperatives.
Union Ministry of Cooperation (2021): Created to oversee cooperative affairs, previously under the Ministry of Agriculture.
Initiatives Making Primary Cooperatives Economically Vibrant and Transparent
Details
Model Bye-Laws for Primary Agricultural Credit Societies (PACS)
Prepared and circulated to all States/UTs.
Enables PACS to undertake over 25 business activities.
Adopted by 32 States/UTs.
Establishing New Multipurpose PACS/Dairy/Fishery Cooperatives
Plan to cover all Panchayats/villages in 5 years.
6,844 new PACS, Dairy, and Fishery cooperative societies registered.
World’s Largest Decentralized Grain Storage Plan
Create warehouses and agri-infrastructure at PACS level.
Pilot project extended to 500 additional PACS.
Formation of New Farmer Producer Organizations (FPOs) by PACS
1,100 additional FPOs to be formed by PACS.
992 FPOs formed by NCDC.
PACS Given Priority for Retail Petrol/Diesel Outlets
Included in Combined Category 2 (CC2) for allotment.
270 PACS from 25 States/UTs applied online.
PACS Eligible for LPG Distributorship
Allowed to apply for LPG distributorships.
31 PACS from four States/UTs submitted applications.
PACS as Pradhan Mantri Bharatiya Jan Aushadhi Kendra
Promote PACS to operate Janaushadhi Kendras.
2,594 PACS given initial approval, 674 received drug licenses.
PACS as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK)
Ensure easy accessibility of fertilizer and related services.
38,141 PACS functioning as PMKSK.
Convergence of PM-KUSUM at PACS Level
Farmers can adopt solar agricultural water pumps and install photovoltaic modules.
Micro-ATMs to Bank Mitra Cooperative Societies
Provide doorstep financial services.
2,700 micro-ATMs distributed in Gujarat.
Rupay Kisan Credit Card to Members of Milk Cooperatives
Provide credit at lower interest rates.
48,000 Rupay KCC distributed in Gujarat.
Formation of Fish Farmer Producer Organization (FFPO)
69 FFPOs registered by NCDC.
Department of Fisheries allocated work to convert 1000 fisheries cooperative societies into FFPOs.
Initiatives Strengthening Urban and Rural Cooperative Banks
Details
Urban Cooperative Banks (UCBs) Allowed to Open New Branches
Open up to 10% (max 5 branches) without prior RBI approval.
Doorstep Services by UCBs
Provide banking facilities at home.
Extended Time Limit for Priority Sector Lending (PSL) Targets
Timeline extended to March 31, 2026.
Nodal Officer in RBI for UCBs
Designated for regular interaction.
Increased Housing Loan Limit by RBI
Doubled for UCBs to Rs. 60 lakhs.
Increased to Rs. 75 lakhs for Rural Cooperative Banks.
Rural Cooperative Banks Lending to Real Estate/Residential Housing
Diversify business to benefit Housing cooperative societies.
Non-scheduled UCBs, StCBs, and DCCBs Notified as MLIs in CGTMSE Scheme
Risk coverage up to 85% on loans.
Doubled Monetary Ceiling for Gold Loan by RBI
Increased from Rs. 2 lakhs to Rs. 4 lakh.
Umbrella Organization for UCBs
Approval given to NAFCUB for formation, providing IT infrastructure and operational support.
PYQ:
[2011] In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?
From UPSC perspective, the following things are important :
Prelims level: Rashtriya Vigyan Puraskar
Why in the News?
G Padmanabhan, the Chandrayaan-3 team, Annapurni Subramaniam, and 30 others have been chosen for the inaugural Rashtriya Vigyan Puraskar (RVP), India’s new national science awards established last year.
What is Rashtriya Vigyan Puraskar?
The RVP comprises four awards:
Vigyan Ratna for lifetime achievement.
Vigyan Shri for scientists of all ages.
Vigyan Yuva for scientists under 45 years.
Vigyan Team for collaborative research work.
These awards were instituted last year, replacing all existing science awards, including the prestigious Shanti Swarup Bhatnagar Prize.
The Vigyan Yuva now serves as a replacement for the Bhatnagar Prize, which also recognized outstanding scientists below 45 years.
Ceremony Details:
These awards shall be announced on the National Technology Day (11th May) every year.
The Award Ceremony for all categories of awards shall be held every year on the National Space Day on 23rd August.
The Hon’ble President of India / The Hon’ble Vice President of India may confer the Awards.
Notable Awardees
G Padmanabhan: At 86, G Padmanabhan, a renowned biochemist known for his work on the malaria parasite, has been named a Vigyan Ratna, recognizing his lifetime achievement in science. Padmanabhan is a towering figure in Indian science and has been honored with the Padma Shri and Padma Bhushan.
Chandrayaan-3 Team: The team behind Chandrayaan-3, which successfully landed India’s first spacecraft on the Moon last year, has been awarded the Vigyan Team award for their collaborative research work.
Vigyan Yuva Puraskar Recipients:
Vivek Polshettiwar (Tata Institute of Fundamental Research, Mumbai): A chemist working on carbon capture technologies.
Urbasi Sinha (Raman Research Institute, Bengaluru): A leading expert in quantum research.
Roxy Mathew Koll (Indian Institute of Tropical Meteorology, Pune): A climate scientist.
Annapurni Subramaniam:
Among the 13 scientists selected for the Vigyan Shri award, Annapurni Subramaniam’s main research focuses on the formation and evolution of star clusters and galaxies.
Other Vigyan Shri Recipients:
Jayant Bhalchandra Udgaonkar: A biologist and former director of IISER Pune.
Naba Kumar Mondal: A particle physicist from Saha Institute of Nuclear Physics, Kolkata.
PYQ:
[2009] For outstanding contribution to which one of the following fields is Shanti Swarup Bhatnagar Prize given?
From UPSC perspective, the following things are important :
Mains level: US Democracy; Differences Between Democracy and Autocracy;
Why in the news?
Since WWII, U.S. foreign policy framed democracies vs. dictatorships, but this binary blurs with recent domestic political trends and shifting allegiances.
The binary between democracy and autocracy in the USA
Difference between Democracy and Autocracy
Democracy is defined as a system of government where the population, typically through elected representatives, exercises power. It emphasizes freedom, constitutional governance, and the protection of fundamental rights.
In contrast, autocracy is characterized by absolute power held by a single ruler, where the will of the ruler supersedes the rights and freedoms of individuals. Autocracies suppress dissent and limit political pluralism, often relying on force and coercion to maintain control.
Current Political Climate
The political landscape in the U.S. has shifted towards a more autocratic style of governance, particularly among factions within the Republican Party. This shift is marked by a growing acceptance of strongman leadership, which seeks to undermine traditional democratic norms and institutions.
Trump’s rhetoric and actions have often reflected a disdain for the checks and balances that are foundational to American democracy. His assertion of broad presidential powers and his attempts to consolidate authority signal a move away from democratic principles toward a more autocratic governance model.
Implications of the Shift
This trend raises concerns about the future of democracy in the U.S. Supporters of Trump and similar populist leaders often view the federal government as an adversary, promoting a narrative that pits “the people” against a corrupt establishment.
What are the different phases of transformation?
Rise of the Administrative State: The first phase was the rise of the administrative state under Theodore Roosevelt, Woodrow Wilson, Franklin Roosevelt, Lyndon Johnson and Richard Nixon.
This broadened the scope of government intervention and generated a complex bureaucracy to address social problems and welfare.
Centralizing Executive Power: As the administrative state grew, presidents needed to bring it under their direct control. During the 1980 transition, Ronald Reagan’s team employed a large staff to centralize control over policy, budgeting, and appointments. This led to the centralized apparatus that now resides in the Executive Office of the President.
In 2024, embracing autocratic tendencies: The populist faction of the Republican Party, concentrated among less educated, blue-collar, white, rural, and religious populations disadvantaged by globalization, embraces a strongman vision of leadership that operates beyond democratic norms.
Trump waged a campaign against norms and institutions of two-party politics, culminating in his efforts to overturn the 2020 election. The Supreme Court’s ruling granting Trump immunity from prosecution for official acts has significantly blurred the line between democracy and autocracy.
The present new normal
Erosion of Democratic Norms and Institutions: Trump showed disdain for legal limitations on presidential power and waged a campaign against democratic norms and institutions. His attempts to overturn the 2020 election results despite losing to Biden exemplified this authoritarian tendency.
Conservatism and Nationalism: Trumpism embraced conservative values like opposition to abortion, support for gun rights, and backing law enforcement.
Trump reshaped U.S. foreign policy to prioritize American interests over global cooperation and multilateralism.
Way forward:
Strengthen Democratic Institutions: Need to reinforce checks and balances to prevent executive overreach, enhance judicial independence, and protect electoral integrity to ensure democratic principles are upheld.
Promote Civic Education and Engagement: Need to educate citizens on democratic values, the importance of pluralism, and the dangers of autocracy to foster informed and active participation in the democratic process.
From UPSC perspective, the following things are important :
Mains level: Implication of Military Coup on India Bangladesh relation
Why in the News?
India will require significant political and diplomatic acumen to navigate the fallout from Sheikh Hasina’s fall, which could destabilize and potentially reshape the geopolitics of the subcontinent.
Why Hasina’s fall was not a surprise?
Long-standing Discontent: Widespread protests against Sheikh Hasina’s government had been brewing over issues like a controversial quota system for government jobs, indicating significant public discontent.
Authoritarian Drift: Hasina’s government has been accused of suppressing opposition and civil society through measures like the Digital Security Act, which has been used to arrest critics and journalists.
Historical Context: Since gaining independence in 1971, Bangladesh has experienced several military coups, political assassinations, and periods of military rule, including the killing of Hasina’s father, Mujibur Rahman, in 1975.
Five Challenges Beyond 1971
Engagement with Opposition: Due to prevailing political uncertainity, India need to distance itself from Hasina and engage with her opponents to maintain credibility and influence in Bangladesh.
Managing Regional Rivalries: India needs to prepare for potential exploitation of the situation by Pakistan and China, which may seek to influence the new government against Indian interests.
Historical Narratives: India needs to navigate the complex historical narratives surrounding the 1971 liberation of Bangladesh, recognizing that many in Bangladesh do not share the same interpretation.
Economic Stability: Ensuring economic stabilization in Bangladesh will be crucial, requiring collaboration with regional partners to prevent extremism and maintain stability.
Recognition of Local Agency: India must acknowledge that Bangladesh has its own political dynamics and agency, which cannot be solely dictated by Indian interests or actions.
What India must prepare for now? (Way forward)
Diplomatic Strategy: India needs to develop a proactive diplomatic strategy to engage with the new government in Bangladesh while avoiding perceptions of interference.
Security Concerns: India must be vigilant about border security and the potential resurgence of anti-India activities, especially if the new government leans towards Pakistan or China.
Economic Engagement: Strengthening economic ties and leveraging people-to-people connections will be essential for maintaining a positive relationship with Bangladesh, regardless of political changes.
Learning from Past Experiences: India should draw lessons from its past experiences with political transitions in the region, such as in Afghanistan, to navigate the current situation effectively.
Collaborative Approach: Working with international partners, including the US and Gulf nations, will be important to address the challenges posed by the political shift in Bangladesh and to ensure regional stability.
Mains PYQ:
Q Critically examine the compulsions which prompted India to play a decisive role in the emergence of Bangladesh. (2013)
Explained | Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Legislations in News;
Mains level: Concerning features of Anti-Conversion Law;
Why in the news?
The UP Assembly’s amendments to its regressive ‘Anti-conversion’ law appear aimed at facilitating misuse, with over 400 cases registered since the original 2021 law.
What is UP’s ‘Anti-conversion’ law?
Uttar Pradesh’s “Anti-conversion” law, officially known as the Uttar Pradesh Prohibition of Unlawful Conversion of Religion Act, 2021, prohibits religious conversion through unlawful means such as misrepresentation, force, undue influence, coercion, allurement, or fraudulent means.
Why was the Original 2021 Anti-Conversion Law Amended by UP?
Increased Stringency: The amendments aim to make the original law more stringent, responding to claims of rising cases of forced conversions and the alleged involvement of foreign and anti-national elements in demographic changes.
Response to Public Discontent: The government cited the need to enhance penalties and legal measures to prevent unlawful conversions, particularly concerning vulnerable groups such as minors and women.
Legitimacy of Complaints: The amendment allows third parties to file complaints about alleged unlawful conversions, expanding the scope of the law and potentially increasing its application against inter-faith marriages.
What are Its concerning features?
Harsh Penalties: The amended law introduces severe penalties, including imprisonment of up to 20 years or life for targeting minors, women, or certain communities through coercion or force.
Bail Conditions: The law imposes stringent bail conditions that make it difficult for accused individuals to secure bail, requiring public prosecutor consent and a presumption of guilt.
Third-Party Complaints: The provision allowing anyone to file complaints against alleged conversions opens the door for misuse by communal organizations and individuals with vested interests, potentially targeting inter-faith couples.
What does it state about bail conditions and ‘foreign funding’?
Bail conditions: The amended law states that an accused individual cannot be granted bail unless the public prosecutor has the opportunity to oppose it, and there is reason to believe the accused is not guilty and unlikely to repeat the offence.
Foreign funding: The law prescribes stiff penalties for receiving funds from foreign organizations for unlawful conversion, with fines and imprisonment aimed at deterring financial support for conversion activities.
How is it different from other states?
Comparison with Other States: While several states like Odisha and Madhya Pradesh have anti-conversion laws, Uttar Pradesh’s amendments are notably harsher, including provisions for life imprisonment, which are not present in other states.
Bail and Proof Burden: Other states may not impose such severe bail conditions or the reverse burden of proof required in Uttar Pradesh, making it easier for accused individuals in those states to secure bail.
Scope of Complaints: In many states, only aggrieved individuals or their close relatives can file complaints, whereas Uttar Pradesh’s amendments allow for broader third-party complaints, increasing the potential for misuse.
Way forward:
Promote Awareness of Rights: Implement comprehensive public awareness campaigns to educate citizens about their legal rights concerning religious conversion and inter-faith marriages.
Legal and Constitutional Review: Stakeholders, including civil society organizations and legal experts, should actively pursue legal challenges against the amended law in the Supreme Court of India.
From UPSC perspective, the following things are important :
Prelims level: NSSO
Mains level: Key highlights of NSSO Report;
Why in the news?
The National Sample Survey Office has released the Household Consumption Expenditure Survey (HCES) report for 2022-23, along with public access to unit-level data on household expenditures.
What does the recent NSSO Report tell us?
The report utilizes various definitions of poverty established by past committees, with the poverty line (PL) being anchored to calorie norms of 2,400 kcal for rural and 2,100 kcal for urban areas as per the Lakdawala Committee. The Rangarajan Committee’s approach considers broader normative levels, including non-food expenses.
The average per capita calorie requirement (PCCR) is estimated at 2,172 kcal for rural and 2,135 kcal for urban populations. The report highlights that the average per capita calorie intake (PCCI) for the poorest segments falls significantly below these requirements, indicating nutritional deficiencies.
The total monthly per capita consumption expenditure (MPCE) thresholds are set at ₹2,197 for rural and ₹3,077 for urban areas, with proportions of the population identified as ‘poor’ being 17.1% in rural and 14% in urban contexts. If non-food expenditures for the poorest 10% are considered, these thresholds rise, increasing the proportion of the deprived.
Approach for measurement is the Issue:
Defining Poverty: The report defines the poor based on MPCE, which is linked to the ability to purchase essential food and non-food items.
The reliance on MPCE does not adequately address nutritional needs. While the poverty line is linked to the ability to purchase food and non-food items.
Caloric Requirement Calculation: The PCCR is derived from the ICMR-National Institute of Nutrition’s latest recommendations, weighted by the population distribution across age-sex-activity categories.
The ICMR-National Institute of Nutrition’s (ICMR-NIN) recommendations for caloric requirements in India are derived from the Recommended Dietary Allowances (RDA) for Indians.
The RDA does not adequately account for regional and cultural differences in dietary habits and food availability.
Fractile Class Analysis: Households are categorized into 20 fractile classes based on MPCE, allowing for the calculation of average PCCI and MPCE for each class.
Each fractile class represents 5% of the population, allowing for a detailed understanding of expenditure distribution and nutritional intake variations within the population
MPCE reflects consumption patterns but does not capture the full spectrum of economic well-being or deprivation.
State-Specific Adjustments: The all-India thresholds are adjusted for regional price differences to derive state-specific MPCE thresholds.
The methodology for deriving state-specific MPCE thresholds relies on regional price indexes, which can vary significantly in their construction and accuracy.
Recommendations for Improving Nutritional Levels (Way Forward)
Nutritional Schemes: Govt. needs to develop and expand schemes specifically aimed at improving the nutritional intake of the poorest households.
Awareness and Education: Govt. should increase awareness about nutrition and healthy eating practices among low-income households.
Subsidized Food Programs: Need to enhance access to subsidised food items to ensure that households can meet their caloric and nutritional needs.
Monitoring and evaluation: Govt. should establish robust mechanisms to monitor the effectiveness of nutritional interventions and adjust strategies as necessary.
Conclusion: The NSSO HCES 2022-23 report reveals significant nutritional deficiencies among the poorest. To align with SDG goals, expanding targeted nutritional schemes, subsidized food programs, and robust monitoring is essential.
Mains PYQ:
Q How far do you agree with the view that the focus on the lack of availability of food as the main cause of hunger takes the attention away from ineffective human development policies in India? (2013)
From UPSC perspective, the following things are important :
Prelims level: Key highlights of RCF Report
Why in the News?
The Reserve Bank of India (RBI) released the “Report on Currency and Finance (RCF)” for the year 2023-24 with the theme – India’s Digital Revolution.
What is the Report on Currency and Finance (RCF)?
The RCF is an annual publication by the Reserve Bank of India (RBI).
It covers various aspects of the Indian economy and financial system, providing insights and analysis on current economic conditions, financial stability, and policy issues.
The theme for the 2023-24 report is “India’s Digital Revolution.”
Focus: It focuses on the transformative impact of digitalization across various sectors in India, especially in the financial sector.
Highlights: The report highlights how digital technologies are reshaping economic growth, financial inclusion, public infrastructure, and the regulatory landscape. It also addresses the opportunities and challenges associated with digitalization.
Key Highlights of the RCF:
[1] Digital Revolution
The RCF emphasizes India’s leading role in the global digital revolution.
With robust digital public infrastructure (DPI), evolving institutional frameworks, and a tech-savvy population, India has emerged as a frontrunner in this arena.
Key initiatives such as Aadhaar, the world’s largest biometric-based identification system, and the UPI, a real-time, low-cost transaction platform, have revolutionized service delivery and financial inclusion.
[2] Digitalization in Finance
The above-discussed initiatives have made retail payments faster and more convenient, while the RBI’s pilot runs of the E-Rupee position India at the forefront of digital currency initiatives.
The digital lending ecosystem is also vibrant, with the Open Credit Enablement Network and the Open Network for Digital Commerce (ONDC) driving growth.
[3] Remittance Inflows in India
India continues to lead as the highest remittance recipient globally, with US$ 115.3 billion in 2023, accounting for 13.5% of the world’s total remittances.
The RCF highlights that more than half of India’s inward remittances in 2021 came from the Gulf countries, with North America contributing 22%.
The remittance-to-GDP ratio for India has risen from 2.8% in 2000 to 3.2% in 2023, surpassing the gross FDI inflows to GDP ratio of 1.9% in 2023.
Looking forward, India is poised to remain a leading supplier of labor, with its working-age population expected to rise until 2048, potentially propelling remittances to around $160 billion by 2029.
[4]Smartphones Penetration
India’s mobile penetration has seen remarkable growth, with internet penetration reaching 55% in 2023 and an increase of 199 million internet users over the past three years.
The cost per gigabyte of data in India is the lowest globally, at an average of Rs. 13.32 per GB.
India has one of the highest mobile data consumption rates worldwide, with an average per-user per-month consumption of 24.1 GB in 2023.
The number of smartphone users in India was about 750 million in 2023, expected to reach 1 billion by 2026.
The RCF projects that India will become the second-largest smartphone manufacturer within the next 5 years.
PYQ:
[2017] Which of the following is the most likely consequence of implementing the ‘Unified Payments Interface (UPI)’?
(a) Mobile wallets will not be necessary for online payments.
(b) Digital currency will replace physical currency in about two decades.
(c) FDI inflows will drastically increase.
(d) Direct transfer of subsidies to poor people will become very effective.
