These Newscards correspond to the explained section of various newspapers. They become immensely important for both prelims and mains and special attention needs to be paid to them
From UPSC perspective, the following things are important :
Prelims level: Bordering countries of Israel
Mains level: Impacts of the War
Why in the News?
Fifty-seven years have elapsed since the Six-Day War ( June 5 to June 10, 1967) fought between Israel and its Arab neighbors.
Causes of the War
Historical Tensions: Rooted in the establishment of Israel in 1948, which resulted in the displacement and death of thousands of Palestinian Arabs, creating a massive refugee crisis.
Egypt-Israel Relations: Particularly hostile due to territorial and water disputes, exacerbated by Egyptian President Gamal Abdel Nasser’s aggressive stance against Israel.
Cold War Influences: Military build-up in Israel and Arab states along Cold War lines, with Israel supported by the US and Arab states by the Soviet Union.
Provocations: Egypt’s naval blockade of the Straits of Tiran in May 1967, cutting off Israel’s maritime access to the Red Sea and mobilizing forces in the Sinai Peninsula.
Outbreak of the War
On June 5, 1967, Israel launched a pre-emptive airstrike on Egyptian airfields, swiftly gaining air superiority and neutralising the Egyptian Air Force.
Israel’s ground forces advanced into the Sinai Peninsula and Gaza Strip, territories occupied by Egypt.
Jordan and Syria entered the war, attacking Israel from the east and north, but were quickly repelled.
Impacts of the War
Territorial Gains for Israel: In less than a week, Israel captured the Sinai Peninsula and Gaza from Egypt, the Golan Heights from Syria, and the West Bank and East Jerusalem from Jordan.
Geopolitical Shift: The defeat was a major blow to Arab nations, establishing Israel’s military and geopolitical dominance in the region.
Emergence of Palestinian Nationalism: The war spurred the rise of Palestinian nationalism and the Palestine Liberation Organization (PLO) emerged as a significant political entity.
Continued Conflict: Ongoing tensions and conflicts in the region, including the 1973 Yom Kippur War, are direct results of the 1967 war and subsequent Israeli occupation of key territories.
Unresolved Refugee Crisis: The plight of Palestinian refugees displaced during and after the war remains unresolved, continuing to fuel regional instability.
Conclusion: The Six-Day War was thus a pivotal event that not only redefined territorial boundaries but also reshaped political dynamics and set the stage for ongoing conflicts in the Middle East.
Mains PYQ:
Q “India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss. (UPSC IAS/2018)
From UPSC perspective, the following things are important :
Prelims level: OECD Global Plastic Outlook
Mains level: Global Plastic Treaty Needs Just Transition
Why in the news?
As discussions for an international legally binding treaty on plastic pollution continue, it is essential to consider how it can support a fair transition for informal waste collectors and recyclers.
Observations by the OECD Global Plastic Outlook
In 2019, global plastic waste production was 353 million tonnes, more than double the amount in 2000. This number is expected to triple by 2060. Only 9% of plastic waste was recycled in 2019.
50% of plastic waste was sent to landfills, 19% incinerated, and 22% disposed of in uncontrolled sites or dumps.
Challenges due to Plastic Pollution:
Soil Pollution: Plastic waste can contaminate soil, reducing its fertility and affecting plant growth.
Marine Pollution: Plastic waste in oceans can harm marine life, alter habitats, and disrupt natural processes, making ecosystems less resilient to climate change.
Water Pollution: Plastic waste can contaminate groundwater and waterways, affecting human consumption and aquatic life.
Health Risks:
Microplastics: Plastic waste can break down into microplastics, which can be ingested by humans and animals, potentially causing health problems.
Toxic Chemicals: Plastic products can leach toxic chemicals, such as phthalates and BPA, into food and water, posing health risks
Significance of Recognizing the Issue
Crucial role of recycling workers: Informal recycling workers recycled 85% of the 9% recycled plastic, playing a crucial role in global waste management.
Economic and Environmental Contribution: These workers alleviate municipal budgets, promote circular waste management solutions, and help mitigate greenhouse gas emissions. Their efforts significantly reduce plastic in landfills and prevent plastic leakage into the environment.
Despite their contributions, informal recycling workers are often overlooked and remain vulnerable. They face risks such as privatization of waste management, waste-to-energy projects, and exclusion from public policy interventions in plastic waste management.
Global Plastic Treaty Needs Just Transition
Need for Intergovernmental Negotiating Committee (INC): Established in 2021, the INC aims to create a legally binding agreement to reduce plastic pollution. The INC has held several meetings, with the final one scheduled in South Korea.
Promoting Informal Workers Participation: The International Alliance of Waste Pickers (IAWP) emphasizes the need to support and integrate informal waste pickers into the treaty discussions. Their historical contributions should be acknowledged, their rights protected, and their perspectives included in policy implementation.
Building Clarity: There is no universally agreed-upon terminology for a just transition or a formal definition of the informal waste sector. Clarifying these definitions is essential.
India’s Voice is Important
India promotes repair, reuse, refill, and recycling without eliminating the use of plastics. This approach emphasizes country-specific circumstances and capacities.
India’s informal waste pickers are indispensable and remain central to the discussion on plastic waste management.
Rethinking EPR norms is crucial to integrating the informal worker cohort into the new legal framework.
As a key representative from the Global South, India’s perspectives and approaches are vital in shaping the Global Plastics Treaty.
Conclusion: By incorporating the perspectives of informal waste workers and ensuring their livelihoods are protected, the Global Plastics Treaty can embody social justice and equity principles, contributing to a sustainable future while leaving no one behind.
Mains PYQ:
Q What are the impediments in disposing of the huge quantities of discarded solid wastes which are continuously being generated? How do we remove safely the toxic wastes that have been accumulating in our habitable environment? (UPSC IAS/2018)
From UPSC perspective, the following things are important :
Prelims level: Monetary Policy Committee (MPC)
Mains level: Why Did the RBI Keep the Rates Unchanged?
Why in the news?
The RBI’s Monetary Policy Committee kept the repo rate at 6.5% for the eighth consecutive time, due to persistent high retail inflation from sticky food prices.
Monetary Policy Committee (MPC)
The Monetary Policy Committee (MPC) of India is responsible for setting the benchmark interest rate in the country.
The committee consists of six members: the Governor of the Reserve Bank of India (RBI), the Deputy Governor in charge of monetary policy, an Executive Director of the RBI, and three external members nominated by the government.
The MPC meets at least four times a year and publishes its decisions after each meeting. The committee’s primary objective is to maintain price stability while considering the goal of economic growth.
Why did the RBI keep the Rates Unchanged?
Inflation Concerns: The Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.5% due to persistent high inflation, with April 2024 retail inflation at 4.83%.
Caution on Food Inflation: The policy stance remains cautious due to the risk of rising food inflation from heatwave conditions, which may impact the final journey of disinflation.
Flexible Inflation Targeting: Under the regime, the RBI aims to keep inflation within the 2-6% range and achieve a 4% target on a durable basis.
Supply Side Disruptions: Persistent supply shocks in cereals, pulses, spices, and vegetables contributed to elevated food inflation, impacting overall inflation management.
What happens to Lending Rates if the Repo Rate is left steady?
Lending Rate:
The lending rate, also known as the bank rate, is the rate at which commercial banks borrow money from the central bank without securities. It is typically higher than the repo rate and is used for longer-term lending. The lending rate is used to assess the long-term monetary goals of a bank and is often used to manage liquidity in the system
Repo Rate
The repo rate, on the other hand, is the rate at which the central bank lends money to commercial banks against government securities as collateral. It is used for short-term lending and is typically lower than the lending rate
Relief for Borrowers: With the repo rate steady at 6.5%, external benchmark lending rates (EBLR) linked to the repo rate will not increase, keeping equated monthly installments (EMIs) on home and personal loans unchanged.
Potential MCLR Increase: Lenders might raise interest rates on loans linked to the marginal cost of fund-based lending rate (MCLR), as the full transmission of the 250 basis points hike in the repo rate from May 2022 to February 2023 has not yet occurred.
Why Has MPC Hiked GDP Growth?
Improving Demand: The MPC raised the GDP growth forecast for FY25 to 7.2% from 7% due to strengthening rural and urban demand conditions buoyed by favourable monsoon forecasts.
Robust Economic Activity: Indicators such as healthy growth in the eight core industries, strong Purchasing Managers Index (PMI) in manufacturing and services, and overall resilient domestic economic activity support the upgraded growth projection.
Sectoral Strength: The manufacturing and services sectors continued to exhibit robust performance, with the PMI for services standing at 60.2 in May 2024, indicating strong expansion.
Conclusion: The RBI’s cautious approach to keeping rates steady while boosting GDP growth projections aims to balance economic growth and inflation control, with a focus on addressing persistent food inflation.
Mains PYQ:
Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Prelims level: States bordering with Myanmar
Why in the news?
The advisory was shared on social media by the Indian Embassy in Yangon on Monday (June 3 2024), urging caution against job offers in the Pha Lu area, south of Myawaddy town. This region has recently emerged as a hotspot where most Indian victims are being trafficked, often via Thailand.
Highlights made by the Indian Embassy’s Advisories:
The embassy has issued multiple advisories warning against fake job rackets in Myanmar, highlighting the significant and ongoing threat.
Declared New Danger Zone: The Pha Lu area, south of Myawaddy town, has been identified as a new hotspot for trafficking, necessitating heightened vigilance. Previous advisories flagged Myawaddy, Yangon, Laukkaing, Lashio, and Tachileik as risky areas.
There’s been a rise in Indian nationals falling victim to crime syndicates in the Myawaddy region on the Myanmar-Thailand border.
On Security Issues:
Broader insecurity: Not just Indian nationals, but individuals from countries like Malaysia and the UAE have also been targeted by these syndicates.
Social Media Caution: Emphasis on avoiding job offers made through social media or unverified sources.
Security Worsening: The security situation in Myanmar has deteriorated since the February 2021 military coup, exacerbating human trafficking issues.
Consultation Urged: Indian nationals are urged to verify job offers and consult respective Indian embassies before accepting employment abroad.
India-Myanmar Bilateral Relations:
India and Myanmar signed a Treaty of Friendship in 1951, and the visit of Prime Minister Rajiv Gandhi in 1987 laid the foundations for a stronger relationship.
Economic Cooperation: India is Myanmar’s 4th largest export market and 5th largest import partner. The bilateral trade target of $1 billion was achieved by 2017.
Strategic Cooperation: India’s engagement with Myanmar is motivated by a desire to counter China’s growing influence in the region and enhance its own influence and standing.
Security Ties: India and Myanmar have cooperated on security issues, including combating drug trafficking and insurgent groups operating in the border areas.
Recent Developments: India gifted Myanmar its first submarine, and the two countries have carried out joint operations against insurgent camps.
The relationship faces challenges such as the Rohingya issue, the coup by the military junta, and the exploitation of the porous border by terrorist outfits and insurgent groups
Way Forward:
Need Monitoring and Ground Surveillance: India can collaborate with social media platforms to monitor and remove fraudulent job postings and take legal action against those responsible.
Stronger Bilateral Cooperation: Strengthen cooperation with Myanmar and neighboring countries like Thailand, Laos, and Cambodia to crack down on human trafficking networks and facilitate the safe return of victims.
Mains PYQ:
Q Cross-border movement of insurgents is only one of the several security challenges facing the policing of the border in North-East India. Examine the various challenges currently emanating across the India-Myanmar border. Also, discuss the steps to counter the challenges. (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Mains level: Challenges between India and Canada
Why in the news?
A parliamentary committee report in Canada has claimed India as the second-biggest foreign threat to the country’s democracy.
About the Khalistan Movement
Origins and Objectives: The Khalistan Movement is a separatist movement seeking to create an independent Sikh state called Khalistan in the Punjab region of India.
Activities in Canada: Canada has a significant Sikh population, and some members support the Khalistan Movement. This has led to tensions between Canadian Sikhs and the Indian government.
Notable Incident: The murder of Hardeep Singh Nijjar, a pro-Khalistan ideologue, in Surrey, British Columbia, on June 18, 2023, intensified these tensions.
Historical Background
Canada and India established diplomatic relations in 1947. The relationship was enhanced by personal ties between Indian Prime Minister Jawaharlal Nehru and Canadian Prime Ministers Louis St. Laurent and Lester B. Pearson in the 1940s and 1960s.
Canada provided significant aid to India under the “Colombo Plan”, including food aid, project financing, and technical assistance. India has been one of the largest recipients of Canadian bilateral aid, amounting to over $3.8 billion CAD.
Recent Developments
India and Canada have seen significant growth in bilateral trade, reaching $8.16 billion in 2023.
Canada is home to over 1.2 million people of Indian origin, who are well-integrated into the mainstream and active in politics.
The two countries have a strategic partnership underpinned by shared values of democracy and pluralism, with regular high-level interactions and long-standing people-to-people ties.
India and Canada have signed several agreements, including the Air Services Agreement, Extradition Treaty, Mutual Legal Assistance Treaty, and Nuclear Cooperation Agreement.
Challenges
Interference Allegations: Canada claims that India has expanded its interference efforts beyond countering pro-Khalistani activities to include targeting Canadian politicians, ethnic media, and Indo-Canadian communities.
Mutual Suspicion: The Canadian Security Intelligence Service has also accused India of being involved in the election process in Canada, a claim denied by India.
Ethnic and Political Dynamics: The presence of a significant pro-Khalistan population in Canada complicates bilateral relations, with domestic politics in both countries influencing diplomatic interactions.
India’s Stand
Denial of Allegations: The Indian government has consistently denied allegations of interference in Canadian affairs and the murder of Hardeep Singh Nijjar.
Counter-Terrorism: India views the Khalistan Movement as a terrorist threat and seeks to counter its activities both domestically and internationally.
Diplomatic Responses: In response to accusations from Canada, India has taken measures such as suspending visa services and issuing official statements to refute claims of interference.
Way forward:
Regular Consultations: Establish a framework for regular high-level meetings between Indian and Canadian officials to address mutual concerns and prevent misunderstandings.
Bilateral Committees: Form joint committees to handle specific issues such as security concerns, immigration, and trade disputes.
Mains question for practice:
Q Discuss the origins and objectives of the Khalistan Movement and analyse the current challenges it poses to bilateral relations between India and Canada. 15M
From UPSC perspective, the following things are important :
Prelims level: SEBI and its regulatory functions
Mains level: Issue Over Subjective Definition
Why in the news?
SEBI expands promoter definition for IPO-bound companies, including founders holding 10% or more, and their immediate relatives.
According to current SEBI regulations, a promoter is someone who controls the affairs of the company or can appoint the majority of directors or is named as such in an offer document.
What is an IPO?
An IPO is an initial public offering, in which shares of a private company are made available to the public for the first time.
An IPO allows a company to raise equity capital from public investors.
The Dutch are credited with conducting the first modern IPO by offering shares of the Dutch East India Company to the general public.
What Norms Say
Expanded Definition of Promoter: The definition of a promoter has been expanded for companies preparing for an IPO. A promoter is someone who controls the company’s affairs, can appoint the majority of directors, or is named as such in an offer document.
Previous Criteria: Founders holding 25% were previously deemed promoters due to their negative control and power to block special resolutions.
New Criteria: Founders holding 10% or more must classify themselves as promoters if they are key managerial personnel (KMP) or directors in the company. Immediate relatives on the company board or KMP will also be classified as promoters, even if they hold just 1%.
About Declassification and 31A of LODR (Listing Obligations and Disclosure Requirements) Regulations
Declassification Difficulty: The current regulations do not provide an easy path for declassifying a promoter as a public shareholder.
Rule 31A of LODR Regulations: To be declassified, a person must not hold more than 10% in the listed company along with their relatives.
Restrictive Nature: This restrictive rule makes declassification almost impossible for immediate relatives who are classified as promoters by virtue of their relationship, especially problematic for married daughters with no active role in the company.
Issue Over Subjective Definition
Subjective Nature of Promoter Definition: The definition of a promoter has been historically subjective, leading to varying interpretations and legal disputes.
Court Rulings: There have been several court rulings addressing the subjective nature of who qualifies as a promoter, highlighting inconsistencies and complexities.
Complex Criteria: Accounting standards and regulatory criteria for determining control and influence in a company are often complicated and can be interpreted in multiple ways.
Need for Objectivity: Experts argue for a more objective test to ascertain control and promoter status, which would provide clearer guidelines and reduce disputes.
Example: Vinod Kothari, Director at Vinod Kothari Consultants, points out that moving towards an objective test is a positive step, given the current complexities in determining control.
Way forward:
Standardised Guidelines: Develop clear and standardised guidelines for identifying promoters, reducing subjectivity and ensuring consistency.
Detailed Disclosures: Mandate detailed disclosures from companies about their promoters, including shareholding patterns, roles, and influence in decision-making.
Mains PYQ:
Q In the light of Satyam Scandal (2009), discuss the changes brought in corporate governance to ensure transparency and accountability. (UPSC IAS/2015)
From UPSC perspective, the following things are important :
Prelims level: Women in Lok Sabha 2024
Mains level: Different Demographic Observations and What Needs to Be Done?
Why in the news?
Over time, there has been a general inclination towards enhancing women’s representation in the Lok Sabha. However, the advancement has been gradual and inconsistent.
Women in Lok Sabha 2024 (PRS data):
Number of Women MPs: India has elected 74 women MPs to the Lok Sabha in 2024, which is four fewer than in 2019.
Percentage of Representation: Women MPs make up just 13.63% of the elected strength of the Lower House.
Party-wise Distribution: Women MPs come from 14 different parties, with the BJP leading with 31 women MPs, followed by the Congress with 13.
Different Demographic Observations:
Trend in Representation: Over the years, there has been a slow and non-linear increase in women’s representation in the Lok Sabha.
Historical Trends: Women’s representation started at 4.41% in 1952 and peaked at 14.36% in 2019.
New Faces: Out of the 74 women MPs elected, 43 are first-time MPs, indicating a higher percentage of newcomers compared to the overall House.
Younger Representation: The average age of women MPs is 50 years, younger than the overall House age of 56 years.
Comparison with Other Countries:
International Comparison: India lags behind several countries in terms of women’s representation, with countries like South Africa, the UK, and the US having higher percentages of women MPs.
Global Rankings: Women make up 46% of MPs in South Africa, 35% in the UK, and 29% in the US.
What Needs to Be Done?
Increase in Representation: There is a need for greater efforts to increase women’s representation in the Lok Sabha to achieve gender parity.
Policy Measures: Implementation of policy measures such as reserving seats for women in the Lok Sabha could help improve representation.
Encouraging Participation: Encouraging more women to enter politics and providing support for their political careers can contribute to greater representation.
Education and Awareness: Promoting education and awareness about the importance of gender equality in politics is essential for fostering a more inclusive political environment.
Mains PYQ:
Q What are the continued challenges for Women in India against time and space? (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Mains level: Use of Data Analytical Tools in Diagnosis
Why in the news?
WHO reports 33,000 new brain cancer cases yearly in India, highlighting widespread suffering.
What is brain cancer?
Brain cancer, also known as primary brain cancer, is an overgrowth of cells in the brain that form masses called brain tumours.
It is different from secondary brain cancer, which occurs when cancer that began in another part of the body spreads to the brain
The World Health Organization (WHO) Report:
Incidence of Brain Cancer: WHO reports approximately 33,000 new incidences of brain cancer annually in India.
Global Cancer Observatory 2020: Brain cancer ranks as the 19th most common type of cancer worldwide.
Use of Data Analytical Tools in Diagnosis:
Potential of Data Analytics: Utilization of data analytical tools like Next-Generation Sequencing (NGS) can simplify the diagnosis process.
Advantages: Data analysis can provide real-time results with precision, reducing the need for invasive procedures like surgeries.
Liquid Biopsy: The introduction of techniques like liquid biopsy offers a less invasive alternative to surgery, enhancing patient comfort.
Impact on Risks, Discomfort, and Pain:
Reduction of Risks: Adoption of data analytics in diagnosis can lower the risks associated with invasive procedures, ranging from short-term paralysis to death.
Enhanced Patient Experience: By offering less invasive alternatives, such as liquid biopsy, patients and their families can experience reduced discomfort and pain during the diagnostic process.
Improved Precision: Data analytics enable clinicians to detect genetic patterns indicative of cancer cells, facilitating early detection and treatment planning, ultimately leading to better outcomes for patients.
Way forward:
Emphasize the transformative potential of data analytics in oncology research, particularly in simplifying diagnosis and reducing risks and discomfort for patients.
Highlight the importance of leveraging innovative technologies like NGS to unlock new possibilities in cancer research and treatment.
Mains PYQ:
Q What are the research and developmental achievements in applied biotechnology? How will these achievements help to uplift the poorer sections of the society? (UPSC IAS/2021)
From UPSC perspective, the following things are important :
Prelims level: Why South Korea has suspended the 2018 agreement?
Why in the news?
South Korea has suspended the 2018 peace agreement and announced the possibility of resuming propaganda broadcasts in North Korea following Pyongyang’s release of thousands of balloons filled with trash and human waste into the South.
Inter-Korean Peace Agreement, 2018
The 2018 inter-Korean peace agreement refers to several agreements and declarations made between North and South Korea to reduce military tensions and improve diplomatic relations. Key elements of the agreement included:
Ceasefire Maintenance: Maintaining and reinforcing the Korean Armistice Agreement.
Demilitarization: Implementing measures to reduce military tensions, such as dismantling guard posts in the Demilitarized Zone (DMZ).
Family Reunions: Facilitating family reunions for those separated by the Korean War.
Economic Cooperation: Pursuing economic projects and infrastructure development.
Propaganda Halt: Both sides agreed to cease propaganda broadcasts and leaflet drops across the DMZ.
Why did South Korea suspend the 2018 agreement?
Recent Provocations: North Korea’s recent aggressive actions, including GPS signal jamming, missile launches, and the release of balloons carrying trash and human waste, pose a threat to South Korean security and civilian safety.
Lack of Trust: The ruling People Power Party (PPP) in South Korea cited a significant erosion of trust between the two Koreas. Senior PPP official Choo Kyung-ho emphasized that mutual trust needs to be restored for any agreements to be honoured.
Calls for Apology: South Korea demands an immediate apology from North Korea for these provocations, highlighting the need for accountability and reparations for the damages caused.
North Korea emboldened by Russian support
Military Assistance: The US has warned that Russia is aiding North Korea in developing advanced weapons technologies, such as hypersonic missiles, in exchange for artillery shells amid Russia’s ongoing war in Ukraine.
Diplomatic Shield: As a permanent member of the UN Security Council, Russia provides a diplomatic shield for North Korea, stalling efforts to pass new resolutions condemning North Korean actions. This backing allows Pyongyang to act more aggressively without significant international repercussions.
Escalated Danger of Conflict
The situation on the Korean Peninsula poses an escalated danger of conflict due to several factors:
Aggressive Posturing: North Korea’s recent actions, including missile tests and aerial provocations, signal an aggressive stance that could lead to military confrontations.
Policy Shift: Analysts believe Kim Jong Un may be deviating from the defensive policies of his predecessors, adopting a more aggressive strategy aimed at altering the status quo on the peninsula.
International Alliances: North Korea’s alignment with Russia, and possibly other authoritarian states like China and Iran, suggests a willingness to use military force to achieve geopolitical goals, challenging the US-led liberal world order.
Military Preparedness: The South Korean military and its allies need to stay vigilant as North Korea tests the South’s air defences and military response times, indicating a higher readiness for potential conflict.
Way forward:
Engage in Multilateral Talks: Revitalize dialogue with key stakeholders, including the United States, China, Japan, and Russia, to address North Korea’s actions and find diplomatic solutions.
Leverage International Organizations: Utilize platforms like the United Nations to garner international support and pressure North Korea to comply with international norms.
Mains PYQ:
Q Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (UPSC IAS/2016)
From UPSC perspective, the following things are important :
Prelims level: Critical Mineral Acquisition Plans of India in Africa
Mains level: Government Initiatives to Secure Critical Minerals
Why in the news?
India has signed new agreements and updated existing ones with a dozen African countries to secure critical minerals. This initiative is crucial for achieving India’s energy transformation goals.
India’s Critical Mineral Acquisition Plans in Africa
India has signed new agreements and updated existing ones with a dozen African countries to secure critical minerals.
This initiative is crucial for India’s energy transformation goals, aiming to diversify sources and reduce dependence on any single supplier.
The agreements are part of a broader strategy to secure access to minerals necessary for renewable energy technologies and electric vehicles.
Demand for Energy in India and China’s Dominance
Energy Demand in India: India’s peak power demand increased to 250 GW in 2023-24, marking a 12.7% increase from the previous year. By 2030, India’s peak power demand is expected to reach 366 GW, up from the current level of 240 GW.
China’s Dominance: China leads in securing and processing critical minerals, having established long-term relationships with mineral-rich countries in Africa and Latin America. Chinese companies dominate mining rights in economically poor yet mineral-rich nations.
China has built significant capacities for processing and refining minerals, making it the primary global hub for critical mineral processing.
India’s Other Overseas Critical Mineral Acquisition Plans
Earlier this year, India signed an agreement with Argentina to explore and develop five lithium brine blocks.
The Geological Survey of India (GSI) discovered inferred lithium reserves of 5.9 million tonnes in Jammu & Kashmir.
India aims to diversify its sources of critical minerals by securing mining leases abroad, ensuring a stable and sustainable supply chain.
Government Initiatives to Secure Critical Minerals
Exploration and Geological Studies: The government is pushing for more extensive exploration and geological studies within India to identify potential reserves of critical minerals. The Geological Survey of India has been tasked with accelerating the exploration of India’s 3.2 lakh sq km land mass using new data and technologies.
Securing Mining Leases Abroad: India is focusing on securing mining leases in other countries to ensure a diversified supply of critical minerals. The agreements with African countries and Argentina are examples of this strategy.
Building Domestic Capacities: The government is providing incentives to build refining and processing capacities within India for critical minerals. There is an emphasis on attracting private miners, both domestic and global, to participate in critical mineral exploration within India.
Policy and Auction Reforms: The government is analyzing why auctions often fail to generate enough interest and is considering policy changes to attract big players. Coordinated efforts between the Centre and state governments on clearances and royalty payments are being emphasized to streamline the auction process.
White Hydrogen Exploration: There is a call for active exploration of potential White Hydrogen deposits within India’s geographical borders.
Way forward:
Accelerate exploration efforts across India’s 3.2 lakh sq km land mass.
Utilize new data sources and advanced technologies to identify potential reserves of critical minerals.
Focus on unexplored areas for potential discoveries of critical minerals, including White Hydrogen deposits.
Mains PYQ:
Q Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objectives? Explain. (UPSC IAS/2022)
From UPSC perspective, the following things are important :
Prelims level: NOTA
Mains level: Impact of NOTA Receiving the Highest Number of Votes in a Particular Constituency
Why in the news?
Over 200,000 votes were cast for NOTA in the Indore Lok Sabha constituency. Let’s explore the reasons behind the introduction of this option and what occurs if, in an improbable scenario, NOTA garners more votes than all other candidates.
Back2Basics: NOTA in Indian Elections
NOTA, which stands for None of The Above, is an electoral choice where voters can express their disapproval of all the candidates in a voting system.
In the 2013 PUCL v. Union of India case, the Supreme Court mandated the use of NOTA in direct elections for the Lok Sabha and State Assemblies.
The ruling specified that in such elections, voters should have the option to select to indicate their dissatisfaction with all candidates or political parties listed on the ballot.
The NOTA option was first used in the 2013 legislative assembly elections held in four states—Chhattisgarh, Mizoram, Rajasthan, and Madhya Pradesh, and the union territory of Delhi.
Impact of NOTA Receiving the Highest Number of Votes in a Particular Constituency
1. Legal Consequence:
Current Status: NOTA has no legal consequence; the candidate with the highest votes after NOTA wins the election.
Indore Case: Shankar Lalwani won with a massive margin over NOTA, which received the highest number of votes ever recorded for NOTA in any constituency.
Possible Change: There are ongoing discussions and petitions urging that elections be declared null and void if NOTA receives the highest number of votes.
2. Future Considerations:
Petition by Shiv Khera: Calls for the ECI to frame guidelines to declare elections null and void if NOTA receives the majority vote and to debar candidates who receive fewer votes than NOTA for five years.
Judicial Stand
2013 Judgment: The Supreme Court ruled that the right to secrecy in voting includes those who choose not to vote, mandating the introduction of the NOTA option.
Rationale: The Court emphasised that secrecy is an essential feature of free and fair elections, supported by the introduction of EVMs to maintain voter anonymity.
Current Deliberations:
New Petition (2024): The Supreme Court is considering a petition to make elections null and void if NOTA gets the highest votes, with additional consequences for candidates.
State-Level Precedents: Some states and union territories (e.g., Maharashtra, Haryana, Delhi) have declared NOTA as a “Fictional Electoral Candidate” for local elections, mandating fresh elections if NOTA receives the majority vote.
Way forward:
Null and Void Clause: Introduce a clause in the Representation of the People Act to declare elections null and void if NOTA receives the highest number of votes.
Debarment of Candidates: Amend the law to debar candidates who receive fewer votes than NOTA from contesting elections for a specified period (e.g., five years).
Mains PYQ:
Q Discuss the procedures to decide the disputes arising out of the election of a Member of the Parliament or State Legislature under The Representation of the People Act, 1951. What are the grounds on which the election of any returned candidate may be declared void? What remedy is available to the aggrieved party against the decision? Refer to the case laws. (UPSC IAS/2022)
From UPSC perspective, the following things are important :
Prelims level: What is a Clearing Corporation?
Mains level: Significance of Usha Thorat Committee Reviewing the Ownership and Economic Structure of Clearing Corporations
Why in the news?
SEBI forms a committee to review clearing corporations’ ownership and economic structure, aiming to enhance resilience, independence, and neutrality as risk managers.
About the Securities and Exchange Board of India (SEBI):
SEBI is the capital markets regulator in India responsible for regulating the securities market and protecting the interests of investors.
It was established in 1988 and given statutory powers in 1992 under the SEBI Act.
SEBI’s functions include regulating stock exchanges, registering and regulating brokers and other intermediaries, and promoting fair and transparent securities markets.
What is a Clearing Corporation?
A clearing corporation is a central counterparty (CCP) that provides clearing and settlement services for trades executed on various exchanges.
It acts as an intermediary between buyers and sellers, guaranteeing the completion of transactions and managing counterparty risk.
Clearing corporations ensure the smooth functioning of financial markets by facilitating the timely settlement of trades and reducing systemic risk.
About Usha Thorat Committee on Reviewing the Ownership and Economic Structure of Clearing Corporations:
SEBI has formed a committee chaired by Usha Thorat, former Deputy Governor of the Reserve Bank of India (RBI), to review the ownership and economic structure of clearing corporations.
The committee’s mandate includes examining the ownership structure and finances of clearing corporations to ensure their resilience, independence, and neutrality as risk managers.
It will assess the feasibility of broadening the list of eligible investors allowed to hold stakes in clearing corporations and suggest categories of investors who can acquire such stakes.
The committee will also explore alternative ownership structures and shareholding patterns suited to an interoperable environment, where clearing corporations provide services across multiple exchanges.
It aims to propose alternatives that address the periodic capital needs of clearing corporations and ensure sufficient capital and liquidity during market-wide systemic stress.
The current ownership structure of clearing corporations is dominated by the parent exchange, which exposes them to the expectations of shareholders of the parent exchange.
Conclusion: The Usha Thorat Committee aims to enhance the resilience and independence of clearing corporations by exploring alternative ownership structures and suggesting measures to ensure adequate capital and liquidity.
Mains PYQ:
Q The product diversification of financial institutions and insurance companies, resulting in overlapping of products and services strengthens the case for the merger of the two regulatory agencies, namely SEBI and IRDA. Justify.(UPSC IAS/2013)
From UPSC perspective, the following things are important :
Mains level: Need of Federalism in India
Why in the news?
The outcome of the Lok Sabha elections surprised those who had relied on the flawed exit polls.
The visible message from the general elections of 2024 emphasized two main points:
Revival of Federalism: The elections underscored the importance of revitalizing federalism, moving away from the centralized control that had characterized the previous decade. It highlighted the need for state governments to have more autonomy and the ability to deliver public services without excessive interference from the central government.
Constructive and Inclusive Political Approach: The results indicated that political parties need to adopt a more constructive and inclusive approach to nation-building. This includes a stronger focus on social justice, addressing economic issues such as unemployment and low wages, and ensuring that policies cater to the needs and rights of various segments of the population, including youth, women, farmers, and workers. The electorate showed a preference for parties that prioritize livelihood and employment issues along with social justice.
Need to revive the Federalism
Decentralization of Power: Federalism ensures a more balanced distribution of power between the central and state governments. This decentralization allows states to manage their affairs more effectively, tailoring policies and programs to their specific needs and circumstances.
Enhanced Public Service Delivery: State governments are primarily responsible for delivering essential public services such as health, education, and infrastructure. A revived federalism would enable states to perform these functions without undue interference from the central government, leading to more efficient and responsive governance.
Cultural and Regional Autonomy: India is a diverse country with varied cultural, linguistic, and regional identities. Federalism respects and accommodates this diversity by allowing states to preserve and promote their unique identities and traditions within the framework of a united nation.
Political Parties need to be more constructive, and inclusive in their approach to nation-building
Addressing Economic Challenges: Parties must focus on pressing economic issues such as unemployment, low wages, and the rising cost of living. Constructive policies that create jobs, support small businesses, and address economic disparities are crucial for national progress.
Social Justice and Inclusion: Inclusivity involves addressing the needs and rights of marginalized and disadvantaged groups. This includes ensuring social justice for various castes, genders, and socio-economic backgrounds. Emphasizing social justice can help reduce inequality and promote a more cohesive society.
Responsive to Public Needs: Political parties need to listen to and address the genuine needs and concerns of the populace. This involves creating policies that reflect the realities faced by people in different regions and socio-economic conditions.
Conclusion: The 2024 Lok Sabha elections underscored the need for revitalized federalism and a constructive, inclusive political approach focused on economic issues and social justice to address diverse public needs effectively.
Mains PYQ
Q How far do you think cooperation, competition and confrontation have shaped the nature of federation in India? Cite some recent examples to validate your answer. (UPSC IAS/2020)
From UPSC perspective, the following things are important :
Prelims level: About Mission Karmayogi and Gati Shakti
Mains level: What is Needed to Achieve the $30 Trillion Economy by 2047?
Why in the news?
The” Indian Institute of Public Administration” evaluated the impact by gathering feedback from supervisors on recently trained staff, and reported enhanced proficiency in data analytics and e-governance tools.
Observations Assessed by the Indian Institute of Public Administration
Increased Proficiency: The Indian Institute of Public Administration (IIPA) observed increased proficiency in data analytics and e-governance tools among recently trained staff.
Skill Development: Section officers and administration assistants across the country have completed 15 lakh online learning modules on data analytics, Government e Marketplace (GeM) modules, and advanced software tools like Excel, leading to enhanced skill levels.
Supervisor Feedback: Feedback from supervisors indicated noticeable improvements in the capabilities and efficiency of the trained staff, reflecting the positive impact of the training programs.
About Mission Karmayogi and Gati Shakti
Mission Karmayogi: Launched by Prime Minister Narendra Modi, this initiative aims to transform India’s three million civil servants into citizen-centric, future-ready, and result-oriented professionals. It includes digital training courses and the use of an online learning portal, iGOT Karmayogi Bharat.
Capacity Building Commission (CBC): Constituted in 2021, the CBC provides policy guidance and tools to enhance the capabilities of all levels of India’s civil services, collaborating with various ministries and training institutions.
PM Gati Shakti: This platform integrates legal and geographic layers to plan and execute mega infrastructure projects efficiently. It promotes a “whole of government” approach for de-siloed, harmonized national priorities.
Training and Certification: Over 24,000 officials have completed PM Gati Shakti learning modules, and over 3,88,000 personnel have been certified in emerging technologies through iGOT Karmayogi Bharat.
Issues and challenges
Resistance to Change: Bureaucracy often resists change due to a preference for the status quo, which can hinder the adoption of new approaches and technologies.
Shift from Generalist to Specialist Approach: Moving from generalist to specialist roles can encounter resistance despite the need for domain expertise, which may slow down the development of specialized skills.
Technical Governance Demands: Effective governance today requires technical proficiency, necessitating skilled personnel. The lack of such skills can hinder the effective implementation of the mission
What is Needed to Achieve the $30 Trillion Economy by 2047?
Improved Governance: Efficient and competent civil services are essential for achieving India’s ambitions. Civil servants must be trained to be citizen-centric, future-ready, and result-oriented.
Infrastructure Development: Speed up the construction of mega infrastructure projects such as railways and highways.Overcome delays caused by inter-ministerial permissions through integrated planning.
Skill Development and Training: Equip civil servants with skills in emerging technologies like AI, IoT, and Big Data. Ensure continuous learning and skill enhancement for civil servants through platforms like iGOT Karmayogi Bharat.
Citizen-Centric Approaches: Promote citizen-centric approaches among civil servants to improve public service delivery.Enhance the capacity of police personnel and other frontline workers to address citizen concerns effectively.
State and Municipal Roles: Strengthen the role of state governments and municipal corporations in delivering services and infrastructure.Implement capacity-building programs at the municipal level for better service delivery.
Tax System Reforms:Develop a tax system that is painless and rewards honest taxpayers. Train tax personnel to address systemic taxpayer grievances effectively.
Way forward:
Continuous Training and Development: Expand online learning platforms like iGOT Karmayogi Bharat to offer specialized courses in emerging technologies, leadership, and governance for civil servants at all levels.
Performance Evaluation and Feedback Mechanisms: Establish robust performance evaluation systems to assess the effectiveness of training programs and identify areas for improvement.
Mains PYQ:
Q Initially Civil Services in India were designed to achieve the goals of neutrality and effectiveness, which seems to be lacking in the present context. Do you agree with the view that drastic reforms are required in Civil Services. Comment (UPSC IAS/2017)
From UPSC perspective, the following things are important :
Prelims level: Real GDP Growth
Mains level: The Centre has to Work Through the States for Reforms
Why in the news?
India’s general election results were surprising, defying exit poll predictions. Despite high economic growth, voters, especially informal workers earning under ₹10,000 monthly, expressed economic concerns.
About the 8% Real GDP Growth in FY24:
Growth Not Inclusive: The 8% real GDP growth has not reached the majority of the population, especially informal-sector workers.
Rural Wages: There’s a contraction in real rural wages, highlighting the dire state of the rural economy.
Income Inequality: High economic growth has not alleviated income inequality, which is reflected in the election results.
The Plight of Taking the Masses into Consideration:
Economic Concerns: Despite the hype around economic growth, voters expressed deep concerns over the state of the economy.
Low Incomes: Over 90% of informal-sector workers registered on the e-Shram portal have a monthly income of ₹10,000 or less.
Election Results: Voters in poorer states have different perceptions; some still support the incumbent government in the hope of better employment and future prospects.
Policy Priorities: The new government must prioritize creating employment opportunities and addressing the economic challenges faced by the masses.
CASE STUDY: Bangladesh:
Role of NGOs: In Bangladesh, NGOs have significantly contributed to social development, especially for women.
Employment Generation: NGOs have provided skilled women power to the apparel industry, enhancing employment opportunities.
NGOs in India: The NGO sector in India has faced scrutiny and high-handedness. The new government should collaborate with NGOs for development programs and employment generation activities.
The Centre has to Work Through the States for Reforms:
Agricultural Sector: With a significant workforce employed in agriculture but contributing minimally to the GVA, reforms in agriculture and allied sectors are essential.
Animal Husbandry and Fisheries: Encouraging growth in animal husbandry, fisheries, and poultry can provide additional income to farmers.
Employment in Other Sectors: To address the surplus workforce in agriculture, employment opportunities must be created in other sectors like textiles, leather, construction, and food processing.
Incentives for Investment: Correcting past policy mistakes and providing incentives for investment in key sectors is crucial.
Infrastructure Development: Improving infrastructure in smaller towns can boost the handicraft, tourism, and hospitality sectors, generating higher incomes and better market access.
Open Network for Digital Commerce (ONDC): Utilizing ONDC to provide new opportunities for craftsmen to access broader markets.
Government Vacancies: Filling government vacancies transparently can address educated unemployment and prevent demotivation among young people.
Conclusion: Develop schemes that specifically cater to informal-sector workers, ensuring they benefit from economic growth. This could include social security measures, skill development programs, and financial inclusion initiatives.
Mains PYQ:
Q ”Economic growth in the recent past has been led by increase in labour productivity.” Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity. (UPSC IAS/2022)
From UPSC perspective, the following things are important :
Prelims level: World Environment Day 2024
Mains level: How COVID-19 Shows Us the Way Forward
Why in the news?
World Environment Day (WED) on June 5th is a global event where people come together to celebrate the importance of environmental conservation and sustainability, emphasizing the urgent need to tackle environmental challenges.
World Environment Day 2024 Theme
Theme: “Land Restoration, Desertification, and Drought Resilience”
Highlighting Critical Issues: Focuses on the significant threats posed by land degradation and desertification, which impact food security, biodiversity, and climate change. For example, the United Nations estimate that about 30% of land is degraded worldwide
The urgency for Action: Emphasizes the need for immediate actions in the face of the triple planetary crisis: Climate Change, Nature and Biodiversity Loss, and Pollution and Waste.
Shared Responsibility: Stresses collective action and individual responsibility in restoring ecosystems, urging everyone to contribute to solutions.
Empowering Youth: Encourages young people to lead the change towards a sustainable future with the #GenerationRestoration slogan.
Alignment with Global Goals: Supports the UN Decade on Ecosystem Restoration (2021-2030) and the Sustainable Development Goals, promoting a comprehensive approach to environmental protection.
India’s Ambitious Renewable Targets
Renewable Energy Goals: India aims to achieve 450 GW of renewable energy capacity by 2030, emphasizing solar and wind energy.
Solar Energy Initiatives: Major solar projects, including the world’s largest solar park in Karnataka and the International Solar Alliance (ISA), aim to promote solar energy adoption.
Wind Energy: India is one of the world’s largest producers of wind energy, with significant wind farms in Tamil Nadu and Gujarat.
Policy Support: The government has introduced various policies and incentives to encourage investment in renewable energy, including subsidies, tax benefits, and easier land acquisition processes.
Sustainable Development: These initiatives align with India’s commitments under the Paris Agreement to reduce carbon emissions and promote sustainable development.
How COVID-19 Shows Us the Way Forward
Environmental Awareness: The pandemic has heightened awareness of the interconnectedness between human health and the environment, highlighting the importance of preserving natural habitats to prevent zoonotic diseases.
Reduction in Pollution: Lockdowns and reduced industrial activities during the pandemic led to significant decreases in air and water pollution, demonstrating the impact of human activities on the environment.
Green Recovery: The concept of building back better suggests incorporating green recovery strategies into post-pandemic economic plans, focusing on sustainable practices and renewable energy investments.
Resilient Systems: Emphasizes the need for resilient and adaptive systems that can withstand future shocks, including those caused by climate change and environmental degradation.
Global Cooperation: COVID-19 underscored the importance of international cooperation and collective action to tackle global challenges, a principle that is equally applicable to environmental issues.
Conclusion: By embracing the lessons from the pandemic, setting ambitious renewable energy targets, and focusing on land restoration and resilience, the global community can work towards a sustainable and resilient future. World Environment Day 2024 serves as a pivotal moment to reflect on these goals and renew our commitment to environmental stewardship.
Mains PYQ:
Q Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”.Comment on the progress made in India in this regard. (150 Words, 10 Marks) (UPSC IAS/2018)
From UPSC perspective, the following things are important :
Mains level: Private Healthcare System in India
Why in the news?
With growing health disparities and inconsistent access to medical services, the need for fair and sustainable healthcare policies has never been more pressing.
Private Healthcare System in India
Private hospitals in India, especially those accredited by the Joint Commission International (JCI) and National Accreditation Board for Hospitals (NABH), are hubs of specialised care and innovation.
These institutions invest heavily in top-tier infrastructure and advanced technologies, significantly enhancing patient outcomes, particularly in complex procedures. Integration of telemedicine and remote care is common, broadening access and building patient trust.
Price Caps, Quality, and Innovation
Affordability vs. Quality: The Supreme Court’s deliberation on standardising medical procedure rates across government and private sectors highlights the tension between affordability and quality. A study indicates a 15% increase in patient dissatisfaction in hospitals under financial pressure from price caps
Impact on Innovation: Price caps could slow the development of new treatments and technologies, particularly in high-investment fields like cancer research and robotic surgery. Value-based pricing, where payments reflect health outcomes rather than service volume, is proposed as a potential solution.
Economic Implications: Properly implemented rate standardisation can alleviate healthcare disparities but must avoid destabilising providers’ economic health. Dynamic pricing models, which adjust based on medical complexity and patient financial status, are recommended. Thailand’s tiered pricing system is cited as a successful example.
Legal and regulatory challenges
No regulation on Rate Fixation: States like Rajasthan and Tamil Nadu have identified significant gaps in the provisions for rate fixation, indicating a need for more robust legal frameworks to ensure fair and standardised pricing across different regions.
Inadequate Laws as per Local Conditions: Current laws may not adequately consider local demographic and economic conditions, necessitating reforms that allow for more customised approaches to healthcare cost management.
Lack in uniform regulation: Moreover,” the Clinical Establishment Act of 2011″, aimed at setting standards for quality, transparency, and accountability, has been adopted by only a few states, and its implementation remains lax. This lack of uniform regulation allows for wide disparities in service costs and quality.
Role of Data in Shaping Policies
Data-Driven Insights: Predictive analytics can foresee the long-term impacts of rate fixation on healthcare innovations, helping policymakers adjust regulations to encourage innovation and accessibility.
Pilot Projects: Implementing pilot projects in select districts can gauge the impact of rate caps on healthcare quality and innovation.
Way Forward
Balanced Pricing Models: Implement value-based pricing where payments are linked to health outcomes rather than the volume of services provided.
Supporting Innovation: Allocate government subsidies and grants for research and development in private hospitals.
Mains PYQ
Q Appropriate local community-level healthcare intervention is a prerequisite to achieve ‘Health for All’ in India. Explain. (UPSC IAS/2018)
From UPSC perspective, the following things are important :
Prelims level: Missing Data and Limitations of Disaster Databases
Why in the news?
The Food and Agriculture Organization (FAO) of the United Nations noted a rise in global disasters from roughly 100 yearly in the 1970s to about 400 in recent years, influenced partly by reporting biases.
Recent Observations
Increase in Disaster Events: The number of disaster events reported worldwide has risen from 100 events per year in the 1970s to around 400 per year in the last 20 years. Patterns in disaster data reveal factors such as increased resilience, climate change, and improved humanitarian response.
Improved Reporting: Reporting of small events, particularly those with fewer than 200 deaths, has increased significantly since the 1980s and 1990s. Historical data mainly included major events due to limited interest and capacity for data collection in earlier periods.
Missing Data and Limitations of Disaster Databases
Biases and Gaps in Historical Records: Earlier records predominantly captured major disasters, with smaller events often missing. Data coverage is particularly poor in low-income regions such as Sub-Saharan Africa and South Asia, where economic losses from disasters are frequently underreported.
Missing Economic Damage and Insured Losses: More than 40% of disasters between 1990 and 2020 lacked estimates of monetary damages. Insured damages were missing in 88% of disaster reports, and 96% needed records of reconstruction costs.
No coverage of Heat Events and Health Impacts: Reporting of heat events is concentrated in a few countries, suggesting underreporting in other regions. Indirect health effects of extreme temperatures, such as increased cardiovascular disease risk, are challenging to quantify and often underestimated.
Need for Data (Way Forward)
Improving Data Coverage: Enhanced data collection in low-income regions and better integration of smaller events into disaster databases are crucial.
Accurate Health Impact Quantification: Improved methods for estimating indirect health effects of extreme temperatures and other disaster-related conditions are needed. Utilising statistical methods to capture the broader health impacts of disasters can aid in better policy formulation.
Policy and Resilience Planning: Reliable and comprehensive disaster data are essential for effective policy-making and resilience planning. Data-driven insights and predictive analytics can help foresee the long-term impacts of disasters and guide regulatory measures to enhance disaster preparedness and response.
Mains PYQ:
Q Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach. (UPSC IAS/2020)
From UPSC perspective, the following things are important :
Prelims level: Credit rating agencies
Mains level: How to ensure the benefits of high growth trickle down to the lower income categories?
Why in the news?
The release of India’s GDP data was eagerly anticipated, especially following the recent upgrade in the “sovereign rating outlook” by S&P. It comes just days before the announcement of the union election results.
Back2Basics: Rating Agency
A rating agency is a company that assesses the financial strength of companies and government entities, especially their ability to meet principal and interest payments on their debts.
Fitch Ratings, Moody’s Investors Service and Standard & Poor’s (S&P) are the big three international credit rating agencies controlling approximately 95% of the global rating business.
In India, six credit rating agencies are registered under the Securities and Exchange Board of India (SEBI): CRISIL, ICRA, CARE, SMERA, Fitch India and Brickwork Ratings.
What does the data say?
India’s GDP growth for 2023-24 is 8.2%, exceeding market expectations and surpassing the previous year’s growth of 7%.
Fourth-quarter growth is particularly robust at 7.8%, with upward revisions in previous quarters contributing to overall growth.
Notable divergence of 1 percentage point between GDP and GVA growth in 2023-24, mainly due to increased net taxes.
Sectoral analysis reveals mixed performance, with manufacturing and construction showing strong growth, while agriculture remains subdued.
Expenditure-side breakdown highlights a slower growth rate in private consumption but healthy growth in investment, led mainly by government spending.
Pillars need to be sustained:
Private Consumption: Ensuring sustained consumer spending, particularly by addressing high inflation and low wage growth, to maintain economic momentum.
Investment: Continuously stimulating both government and private sector investment to drive economic expansion and foster innovation and productivity.
Exports: Maintaining competitiveness in global markets and promoting export-oriented growth to leverage external demand and diversify revenue sources.
How to ensure the benefits of high growth trickle down to the lower-income categories?
Improving Private Consumption: Focus on reviving private consumption, especially among lower-income groups. Address concerns of high inflation and low wage growth affecting consumer confidence.
Enhancing Employment Opportunities: Prioritize improving the employment scenario, particularly in sectors generating significant employment like IT and the unorganized sector. Recognize the importance of employment in sustaining consumption growth and overall economic stability.
Investment in Rural Development: Ensure spatial and temporal distribution of rainfall for rural demand recovery. Moderating food inflation and improving employment conditions crucial for rural consumption revival.
Boosting Private Capex Cycle: Create an environment conducive to private investment, focusing on policy certainty and confidence in economic stability. Encourage private sector investment through favourable policies and supportive regulatory frameworks.
Policy Focus on Inclusive Growth: Direct policy attention towards ensuring that the benefits of high growth extend to lower-income categories. Implement targeted social welfare programs and initiatives to support vulnerable groups and reduce income inequality.
Monitoring Global Developments: Stay vigilant of global economic trends and developments that could impact the Indian economy, such as geopolitical tensions and supply shocks. Adapt policies accordingly to mitigate risks and capitalize on opportunities for sustained economic growth.
Conclusion: The Indian government aims to bolster equitable growth through measures such as stimulating private consumption, enhancing employment prospects, and fostering a conducive investment environment, supported by targeted policies and proactive global monitoring.
Mains PYQ:
Q Explain the difference between the computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (UPSC IAS/2021)
From UPSC perspective, the following things are important :
Prelims level: Lancet Report;
Mains level: Women Issues in Indian Society; Health Issues;
Why in the news?
Over 30 years, a study examining 20 diseases revealed minimal advancements in narrowing the disparity between genders as per “the Lancet Public Health Journal”.
What does the New Lancet report say?
On Health Disparities: The study highlights that women tend to suffer more from lower back pain, depression, and headaches, while men have shorter life expectancies due to higher rates of road accidents, cardiovascular diseases, and, recently, COVID-19.
On Health Burden: Women spend more time in poor health, while men are more likely to die prematurely from severe conditions.
Overall Global Analysis: The analysis examines differences in the 20 leading causes of illness and death globally, considering all ages and regions.
What Causes the Differences in Diseases Between Women and Men? (Observations)
Biological Factors:
Hormonal Differences: Hormonal fluctuations in women, such as during menstrual cycles, pregnancy, and menopause, can influence susceptibility to certain conditions like migraines, depression, and autoimmune diseases.
Genetic Variations: Variations in genes and genetic predispositions may contribute to differences in disease susceptibility and severity between sexes.
Anatomical Variances: Physiological differences, such as in skeletal structure and hormonal regulation, can affect the manifestation of certain diseases like lower back pain and reproductive disorders.
Societal and Gender Norms:
Healthcare-Seeking: Societal norms and gender roles may influence healthcare-seeking behaviors, with men often less likely to seek medical attention for mental health issues due to perceived notions of masculinity.
Occupational Hazards: Occupational differences between genders can lead to varying exposures to health risks, with certain professions associated with higher rates of injury or exposure to harmful substances.
Socioeconomic Factors: Disparities in socioeconomic status can impact disease prevalence and outcomes differently for women and men.
Healthcare System Bias:
Diagnostic Bias: Gender biases in healthcare may result in underdiagnosis or misdiagnosis of certain conditions in women, leading to delays in treatment and poorer health outcomes.
Treatment Disparities: Differences in treatment approaches and responses may exist between sexes, with women sometimes receiving less aggressive treatment for cardiovascular diseases or being undertreated for pain conditions.
Research Bias: Historically, medical research has often focused on male subjects, leading to a lack of understanding of how diseases manifest and progress differently in women.
No Improvement in Care for Women Over Time
Stable Gender Gap: Despite overall health improvements, the disparity between male and female health conditions remains stable.
Conditions Affecting Women: Conditions like lower back pain and depressive disorders have shown little to no decrease over time compared to male-dominated conditions.
Reproductive Focus: Global health systems have historically focused on women’s reproductive health, neglecting other significant health issues affecting women.
What Needs to Be Done (Way Forward)
Better Data Collection: Governments should consistently collect and categorize health data by sex and gender to better understand and address health disparities.
Targeted Health Interventions: Specific health interventions should be developed and implemented based on detailed sex and gender data.
Increased Funding: More financial resources should be allocated to underfunded conditions that disproportionately affect women, such as mental health.
Addressing Healthcare Bias: Efforts should be made to eliminate biases in healthcare to ensure women receive appropriate and timely treatment for their conditions.
Mains PYQ:
Q Can the vicious cycle of gender inequality, poverty and malnutrition be broken through microfinancing of women SHGs? Explain with examples. (UPSC IAS/2021)
