Note4Students
From UPSC perspective, the following things are important :
Mains level: Crime against venerable section;
Why in the News?
A recent Supreme Court ruling redefines the act of watching and downloading child pornography as a serious crime, rather than merely an adult indulgence.
Effectiveness of Existing Laws:
- Expansion of Legal Scope: The Supreme Court ruling corrected the limited interpretation of the Madras High Court by making downloading and storage of Child Sexual Exploitative and Abuse Material (CSEAM) a crime under the Protection of Children from Sexual Offences (POCSO) Act. This strengthens the legal framework for child protection.
- Shift in Terminology: The judgment reframed “child porn” as CSEAM, emphasizing that it is a severe crime rather than an “adult indulgence,” thereby acknowledging the harm caused to children.
- Mandating Responsibilities for Intermediaries: The court placed stringent obligations on social media platforms to report CSEAM content to authorities in real-time, ensuring compliance with Indian law.
What new measures will be implemented to enhance Child Safety?
- Cybercrime as an Organized Crime: Explicitly defining cybercrimes involving CSEAM as economic and organized crimes in Indian law, including outlawing emerging offenses like AI-generated child sexual abuse content.
- Forensic Lab Establishment: A domestic forensic lab equipped with advanced technology will be set up to handle CSEAM cases, enabling faster response times to flagged content and coordination with law enforcement agencies.
- National Database on Sexual Offenders: Ensuring that individuals prosecuted for possession or sharing of CSEAM are added to a database and prohibited from employment in child-related sectors.
Collaboration among Stakeholders:
- Real-Time Reporting by Social Media Platforms: The judgment mandates social media companies and intermediaries to report instances of CSEAM to law enforcement immediately, facilitating rapid intervention.
- International Cooperation: Calls for the establishment of an International Database of Sex Offenders to strengthen cross-border coordination in tracking offenders. This includes working with international agencies like Interpol to streamline efforts.
- Role of Financial Institutions: Leveraging financial institutions to trace and disrupt the financial transactions that support networks involved in child exploitation.
Educational Initiatives:
- Awareness Programs on Digital Safety: Launching campaigns to educate parents, children, and communities about the dangers of online child exploitation and methods for protecting themselves.
- Training for Law Enforcement and Judiciary: Providing specialized training to authorities on identifying and prosecuting CSEAM cases, including the use of AI in the creation of exploitative material.
- School-Based Programs: Implementing programs in schools to teach children about safe online behavior and recognise signs of potential exploitation.
Way forward:
- Strengthen Legal and Technological Frameworks: Update laws to explicitly classify CSEAM-related cybercrimes as organized crimes and establish a state-of-the-art forensic lab for swift case handling and coordination with global agencies.
- Enhance Prevention and Awareness Initiatives: Implement nationwide digital safety education for children, parents, and authorities, while bolstering collaboration with international bodies and financial institutions to dismantle exploitation networks.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Significance of biobanks;
Why in the News?
Precision medicine is ushering in a new era of personalized healthcare, with its foundations taking shape during the completion of the Human Genome Project by scientists.
What is the current legal framework governing biobanks in India?
- Lack of Comprehensive Legislation: India lacks specific, comprehensive laws governing biobanks. The current framework consists of guidelines rather than enforceable laws, creating gaps in the regulation of biobanking practices.
- National Ethical Guidelines by ICMR: The Indian Council for Medical Research (ICMR) has issued guidelines on ethical practices in biomedical research involving human participants. However, these guidelines are not legally binding and do not address all aspects of biobanking, such as long-term storage and data sharing.
- Department of Biotechnology (DBT) Standards: The DBT has certain practices in place for data storage and analysis, but these also lack enforceability and do not fully cover issues such as informed consent and privacy.
- Absence of a Single Regulatory Authority: India currently does not have a dedicated regulatory authority to oversee biobanks, which leads to inconsistencies and limited oversight in biobanking activities.
How do privacy concerns impact biobank operations and precision medicine?
- Informed Consent Issues: Participants often give consent without detailed information about how their biological samples and associated data will be used, who will have access, and for how long. This lack of transparency raises privacy concerns.
- Genetic Data Privacy Risks: Genetic information can reveal intimate details about an individual’s health and predisposition to diseases, potentially affecting their family members. If data privacy is not robustly protected, it may lead to genetic discrimination in insurance or employment.
- Data Sharing Without Proper Regulation: In the absence of clear legal provisions, data or samples could be shared without proper consent, risking misuse by pharmaceutical companies or research organizations, including foreign entities.
- Impact on Public Trust: Weak data and privacy protections may reduce public willingness to participate in biobank projects, thus limiting the scale and diversity necessary for effective precision medicine research.
What are the ethical implications of biobanking practices in India?
- Ownership and Benefit Sharing: Without legal protections, there is ambiguity regarding the ownership of biological samples. Individuals contributing samples may not receive benefits from commercial applications resulting from their data, raising ethical concerns about fair compensation.
- Consent Transparency: Participants may not fully understand the scope of their consent, especially regarding future uses of their samples and data. This lack of clarity can be considered ethically problematic, as it may involve the exploitation of participants’ contributions.
- Risk of Misuse or Mismanagement: Inconsistent regulations and the absence of penalties for ethical violations create a risk of mishandling samples, unauthorized data access, and exploitation, which may compromise research integrity.
- Discrimination Risks: Genetic information obtained from biobanks could be used to discriminate against individuals based on their health risks or genetic traits, which raises concerns about ethical and legal safeguards.
Way forward:
- Establish Comprehensive Legislation: Develop and implement a comprehensive legal framework specifically governing biobanks, including clear guidelines on informed consent, data protection, ownership rights, and benefit sharing.
- Create a Regulatory Authority: Establish a dedicated regulatory authority to oversee biobank operations, ensuring compliance with ethical standards and legal requirements.
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From UPSC perspective, the following things are important :
Prelims level: Definition of Rare Diseases
Mains level: Issues related to rare disease;
Why in the News?
The Delhi High Court recently issued directives to enhance the availability of “orphan drugs” to combat rare diseases.
About the Delhi High Court Verdict:
- The Delhi High Court issued directions aimed at improving the availability of “orphan drugs,” which are used to treat rare diseases.
- This intervention seeks to address challenges related to the high cost of these treatments and the barriers to access for patients with rare diseases in India.
Rare Diseases in India and Their Classification:
- Definition: According to the World Health Organization (WHO), rare diseases are debilitating, lifelong conditions that affect 1 or fewer individuals in 1,000.
- Conditions Recognized as Rare Diseases in India: Approximately 55 conditions, including Gaucher’s disease, Lysosomal Storage Disorders (LSDs), and certain muscular dystrophies, are classified as rare diseases.
- National Registry: The Indian Council of Medical Research (ICMR) manages the National Registry for Rare and Other Inherited Disorders (NRROID), which has documented 14,472 patients with rare diseases.
Classification of Rare Diseases in India:
- Group 1: Diseases that can be treated with a one-time curative procedure (e.g., certain enzyme replacement therapies).
- Group 2: Conditions requiring long-term or lifelong treatment, which are relatively less expensive and have documented benefits. Regular medical check-ups are necessary for patients.
- Group 3: Diseases for which effective treatments are available, but they are highly costly and require ongoing, lifelong therapy. Selecting beneficiaries for these treatments presents a challenge due to the high costs.
Current Funding Policy in India:
- National Policy for Rare Diseases (NPRD) 2021: Launched to provide financial support for the treatment of rare diseases. Patients receiving treatment at designated Centres of Excellence (CoE) can get financial assistance up to Rs 50 lakh.
- Centres of Excellence: The CoEs include institutions such as AIIMS in Delhi, PGIMER in Chandigarh, and the Institute of Postgraduate Medical Education and Research at Kolkata’s SSKM Hospital.
- Crowdfunding and Voluntary Donations Portal (2022): The Health Ministry launched a digital platform that allows donors to contribute toward the treatment of rare disease patients at CoEs. The portal provides details about patients, their conditions, estimated treatment costs, and bank account information of the CoEs.
Did you know?
- Murine Typhus (a rare disease) is a flea-borne bacterial disease caused by Rickettsia typhi, transmitted through infected flea bites, primarily from rodents and not contagious between humans.
- A 75-year-old man from Kerala’s capital Thiruvananthapuram was recently diagnosed with Murine Typhus after travelling to Vietnam and Cambodia.
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Challenges Associated with Orphan Drugs:
- Limited Treatment Options: Therapies are available for fewer than 5% of rare diseases, resulting in less than 10% of patients receiving disease-specific treatment.
- High Treatment Costs: Many existing therapies for rare diseases are prohibitively expensive, putting a significant financial burden on patients and their families.
- Regulatory Delays: Approval processes, such as those from the Drug Controller General of India (DCGI), can be slow. For instance, delays in approving US-based Sarepta Therapeutics’ medicines in India have affected the timely availability of treatments.
- Bureaucratic Hurdles: Decision-making delays and administrative red tape further complicate access to necessary drugs, impacting patient care.
- Challenges in Beneficiary Selection: Due to high treatment costs, identifying and prioritizing beneficiaries for financial assistance is difficult, potentially leaving some patients without support.
Way forward:
- Streamline Regulatory Approvals: Expedite the approval process for orphan drugs by reducing bureaucratic hurdles and establishing a fast-track mechanism for essential treatments, ensuring timely access to life-saving medications.
- Increase Financial Support and Expand Coverage: Enhance the funding cap under the National Policy for Rare Diseases and extend financial assistance to more patients, while encouraging public-private partnerships and innovative funding mechanisms like insurance coverage for rare disease treatments.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Features of the RTI
Mains level: Issues related to RTI;
Why in the News?
Governments are undermining the RTI Act by delaying the appointment of information commissioners, causing commissions to struggle with increasing backlogs, according to a 2023-24 report of Satark Nagrik Sangathan.
About Satark Nagrik Sangathan (SNS):
- Satark Nagrik Sangathan (SNS) is not a government-based organization; rather, it is a citizens’ organization focused on promoting transparency, accountability, and good governance in India.
- A citizen organization is a non-governmental group formed by individuals who come together to advocate for specific causes, promote social change, or address community issues..
Current Challenges Facing the Implementation of the RTI Act:
- Vacant Posts in Information Commissions: Many information commissions have unfilled vacancies, which severely affects their functioning. For instance, the Central Information Commission has eight out of 11 positions vacant. Some state commissions, like those in Jharkhand, Tripura, and Telangana, have been defunct for years.
- Mounting Backlogs: The lack of sufficient information commissioners has led to over 4 lakh pending appeals and complaints. In some states, such as Chhattisgarh and Bihar, a fresh appeal may not be disposed of until 2029.
- Bias in Appointments: A majority of appointed commissioners are retired government officials or individuals with political affiliations, leading to reluctance to take action against transparency violations.
- Failure to Impose Penalties: Commissions rarely penalize officials for violations, with penalties imposed in only 5% of cases where applicable. This promotes a culture of impunity and discourages proper adherence to the RTI Act.
- Regressive Amendments: Amendments to the RTI Act in 2019 reduced the autonomy of information commissions by giving the central government control over tenure, salaries, and entitlements of commissioners. The 2023 Digital Personal Data Protection (DPDP) Act further restricted the disclosure of personal information under the RTI Act.
- Threats and Attacks on RTI Activists: There have been nearly 100 killings and thousands of cases of assault, intimidation, and legal harassment against individuals using the RTI Act.
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How the Erosion of RTI Undermines Democratic Principles:
- Weakening of Accountability and Transparency: The RTI Act empowers citizens to seek information and hold the government accountable. Erosion of this right leads to reduced government transparency, weakening the democratic process of checks and balances.
- Increased Impunity and Abuse of Power: The failure to impose penalties and enforce accountability fosters a culture where officials can evade scrutiny without facing consequences, allowing for corruption and abuse of power to thrive.
- Diminished Public Participation in Governance: The RTI Act plays a crucial role in empowering citizens to participate in governance by providing access to information. Restrictions on this access limit citizens’ ability to make informed decisions and engage with government policies effectively.
- Chilling Effect on Whistleblowers and Activists: Threats and violence against RTI users deter citizens from using the law to expose wrongdoing, leading to a decrease in transparency and whistleblowing.
Measures to Strengthen the RTI Framework in India: (Way forward)
- Fill Vacancies and Increase Capacity: Appoint information commissioners promptly to reduce backlogs and ensure commissions function efficiently. Strengthen the infrastructure and manpower of commissions to handle increasing workloads.
- Restore Autonomy and Accountability: Reverse regressive amendments and ensure that information commissions operate independently. Implement stricter measures for imposing penalties on officials who violate RTI norms.
- Strengthen Legal Protections for RTI Users: Operationalize the Whistleblowers Protection Act, 2014, to protect those who face retaliation for using the RTI Act. Provide security and legal assistance to activists and whistleblowers.
- Promote Digital Solutions: Enhance the use of digital platforms to file RTI applications and appeals, and improve the efficiency of the information disclosure process. This can help reduce delays and improve transparency.
- Public Awareness and Training Programs: Conduct regular public awareness campaigns to educate citizens about their rights under the RTI Act. Provide training to information officers to improve their understanding of the law and ensure timely and accurate responses.
Mains PYQ:
Q Recent amendments to the Right to Information Act will have a profound impact on the autonomy and independence of the Information Commission”. Discuss. (UPSC IAS/2020)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Issues related to population control;
Why in the News?
For many years, International NGOs (INGOs) have promoted donor-driven agendas that have frequently caused harm to local communities.
Case Study: Africa and Bolivia
- Tanzania and Kenya (Africa): In these regions, INGO-led conservation efforts, often backed by Western donors, displaced indigenous Maasai communities from their ancestral lands. These interventions were justified as conservation projects but disregarded local rights and livelihoods, leading to social and economic harm for the Maasai.
- Bolivia (Cochabamba): Water privatization, supported by INGOs and international donors, restricted access to basic water resources, sparking widespread public outcry.
- The privatization, part of broader neoliberal reforms, was later reversed due to local resistance, revealing the negative effects of donor-driven agendas on essential public services.
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What are the Historical roots of Gender Imbalance?
- Colonial Policies: British colonial land reforms in the 18th and 19th centuries, especially among land-owning castes, exacerbated female infanticide due to several socio-economic factors linked to inheritance, property rights, and the structure of agrarian society.
- Post-Independence Malthusian Fears: Following independence, fears of overpopulation dominated Western perceptions of India, and INGOs, influenced by these Malthusian concerns, promoted population control measures.
| Note: Malthusian concerns originate from the ideas of Thomas Malthus, an 18th-century British scholar. In his 1798 work, An Essay on the Principle of Population, Malthus argued that population growth would outpace food production, leading to widespread famine, disease, and societal collapse. |
Role of INGOs in Worsening Gender Imbalance in India
- Population Control Focus: INGOs such as the Ford Foundation, Rockefeller Foundation, and Population Council were instrumental in introducing sex-determination technologies, particularly between the 1950s and 1980s, by directing significant funds towards these efforts while sidelining other public health needs.
- Influence in Institutions: INGOs embedded themselves in key Indian institutions such as AIIMS and the International Institute for Population Sciences (IIPS), shaping the direction of research and policy towards population management.
- For example, Sheldon Segal of the Population Council worked closely with the Indian Health Ministry to prioritize family planning over other pressing health concerns like tuberculosis and malaria.
- Promotion of Sex Selection: Doctors, influenced by the donor-driven agendas of INGOs, began promoting sex-determination technologies like amniocentesis under the pretext of reducing “unnecessary fecundity.”
Impact of Sex Determination Technology
- Introduction and Spread: Sex determination technologies, such as amniocentesis and ultrasound, Initially intended for detecting fetal abnormalities, they were quickly co-opted for sex selection, leading to a significant increase in female foeticide.
- Census data reveals a steady decrease from 943 girls per 1,000 boys in 1951 to 927 girls per 1,000 boys by 1991. The sharpest fall occurred between 1971 and 1991, coinciding with the spread of these technologies.
- Regional Variations: States with easier access to sex-determination tests, such as Punjab and Haryana, experienced the steepest declines in their child sex ratios.
- By 2001, Punjab’s ratio had dropped to 876 girls per 1,000 boys, while Haryana’s fell to 861.
- Missing Girls: A 2006 study published in The Lancet estimated that sex-determination technologies contributed to the loss of 10 million female births in India between 1980 and 2010, with approximately 500,000 female foetuses aborted annually during this period.
Way forward:
- Strengthen Legal Enforcement and Awareness: Enforce stricter penalties for illegal sex determination practices and raise public awareness to shift societal norms that value male children over female children, promoting gender equality at all levels.
- Focus on Holistic Public Health and Gender Policies: Redirect INGO and government efforts toward comprehensive health programs, prioritizing women’s health, education, and economic empowerment, rather than solely focusing on population control.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Issues in the Workplace;
Why in the News?
Data indicates that Central Europe and the wealthiest nations in Asia are approaching the cancer rates from workplace exposure to carcinogens seen in Western Europe, Australia, and New Zealand.
Carcinogens are associated with Occupational Cancer:
- Asbestos: A major contributor to lung cancer and mesothelioma, responsible for the highest number of deaths is related to occupational exposure.
- Benzene: Associated with leukemia and bladder cancer; prevalent in chemical industries.
- Silica: Linked to lung cancer; significant exposure occurs in construction and mining.
- Diesel Engine Exhaust: Contributes to lung cancer and other respiratory issues.
- Secondhand Smoke: Increases risk of lung cancer among workers in smoke-exposed environments.
- Arsenic, Beryllium, Cadmium, Chromium: Various cancers are associated with these substances, including kidney and lung cancers.
Data Trends on Cancer from Workplace Exposure:
- Western Europe and Australasia historically had the highest rates of death from cancers attributed to workplace carcinogens. These regions have maintained the highest mortality rates for over three decades.
- Southeast Asia countries like Singapore, Japan, Brunei, and South Korea have seen their cancer death rates from occupational exposure triple since 1990. This increase correlates with their growing manufacturing sectors.
- In Central Europe and East Asia, death rates have doubled in Central Europe and increased by 2.5 times in East Asia since 1990. The rise is attributed to a large manufacturing economy that often lacks stringent safety regulations.
International guidelines:
- World Health Organization (WHO): The WHO emphasizes the need for primary prevention by avoiding exposure to carcinogens. They recommend specific interventions, such as banning asbestos and introducing benzene-free alternatives. WHO also advocates for comprehensive national cancer control programs that include occupational health standards.
- International Labour Organization (ILO): The ILO has established conventions and recommendations aimed at preventing occupational hazards caused by carcinogenic substances. These include:
- Replacement of carcinogenic substances with less dangerous alternatives.
- Establishing lists of prohibited or controlled carcinogens.
- Implementing medical surveillance and exposure monitoring
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Way forward:
- Strengthen Regulations and Enforcement: Implement and enforce stricter occupational health and safety regulations, including banning or limiting the use of known carcinogens, such as asbestos and benzene, and promoting safer alternatives in industries.
- Enhance Awareness and Training: Develop comprehensive training programs for workers and employers on the risks of carcinogens, safe handling practices, and the importance of regular health monitoring to prevent occupational cancers.
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From UPSC perspective, the following things are important :
Mains level: Impact of global warming;
Why in the News?
A new study reveals that plant cover on the Antarctic Peninsula, a mountainous region extending towards South America, has increased more than tenfold in recent decades due to rising temperatures.
What has the study found?
- Vegetation in the Antarctic Peninsula increased 14-fold between 1986 and 2021, expanding from less than 1 sq km to nearly 12 sq km.
- Mosses and lichens dominate this vegetation, with greening accelerating by 30% between 2016 and 2021.
- The changes are linked to anthropogenic climate change and observed through satellite data.
How quickly is Antarctica warming?
- Antarctica is warming twice as fast as the global average, at 0.22-0.32°C per decade (compared to 0.14-0.18°C globally).
- The Antarctic Peninsula is warming five times faster than the global average and is now almost 3°C warmer than in 1950.
- Record-breaking heatwaves have occurred, with temperatures rising up to 28°C above normal in July 2023 and 39°C above normal in March 2022.
Why should we worry about increased vegetation in Antarctica?
- Invasive Species: Warming temperatures and increased vegetation disrupt the ecological balance, allowing non-native species to outcompete native flora like mosses and lichens, leading to reduced biodiversity and altered habitats.
- Albedo Effect: Increased plant cover lowers the albedo effect, resulting in greater solar energy absorption and further warming, creating a feedback loop that promotes additional vegetation growth.
- Soil Formation: Plant life accelerates soil development by adding organic matter, enhancing nutrient cycling, and creating a more hospitable environment for non-native species, thereby increasing the risk of invasives.
- Ice Loss and Sea-Level Rise: Higher temperatures from warming and the albedo effect lead to increased ice melt, contributing to global sea-level rise, which threatens coastal ecosystems and human settlements with flooding and erosion.
Way forward:
- Strengthen climate action: Accelerate global efforts to reduce greenhouse gas emissions, focusing on renewable energy and sustainable practices to mitigate further warming in Antarctica.
- Monitor ecosystems: Establish stricter biosecurity measures and enhanced monitoring to prevent invasive species from spreading and disrupting Antarctica’s fragile ecosystem.
- Promote global cooperation: Increase international collaboration on Antarctic research, focusing on climate change impacts, ecosystem protection, and adaptation strategies to minimize global sea-level rise and biodiversity loss.
Mains PYQ:
Q Major cities of India are becoming vulnerable to flood conditions. Discuss. (UPSC IAS/2016)
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From UPSC perspective, the following things are important :
Mains level: Life Expectancy and related challenges,
Why in the News?
After decades of steady increases in human life expectancy due to advancements in medicine and technology, recent trends suggest that these gains are starting to slow down, according to a new study.
The Key Findings of the Study:
- Slowing of Life Expectancy Gains: After decades of rising life expectancy due to medical and technological advancements, the pace of these increases has slowed significantly. The study suggests that human life expectancy has nearly plateaued, with dramatic extensions unlikely without breakthroughs in anti-aging medicine.
- Regional Analysis: The study analyzed life expectancy data between 1990 and 2019 from regions with the longest life spans, such as Australia, Japan, and Sweden.
- Even in these regions, life expectancy increased by only 6.5 years on average over the 29-year period.
- Challenges of Radical Life Extension: Researchers found that while people live longer due to improvements in healthcare, the human body’s aging process—marked by the declining function of internal organs—limits life span. Even if diseases like cancer and heart disease are eliminated, aging itself remains a barrier.
- Low Probability of Reaching 100: The study estimates that girls born in the longest-living regions have only a 5.3% chance of reaching 100 years, while boys have a 1.8% chance. Thus, despite medical advancements, reaching 100 years remains rare without interventions to slow aging.
- Aging as the Primary Barrier: Researchers argue that extending average life expectancy dramatically will require breakthroughs that slow the aging process rather than just better treatments for common diseases.
- Some experimental drugs, like metformin, have shown potential in animal studies, but human trials are needed.
India’s Present Status:
- Lower Life Expectancy: As of 2024, India’s average life expectancy is around 70 years, In contrast, countries like Japan and Switzerland boast life expectancies exceeding 83 years.
- Healthcare Advancements: While India has made significant progress in combating infectious diseases and improving maternal and child health, chronic illnesses and lifestyle diseases (such as heart disease and diabetes) are emerging as leading causes of death.
What Needs to Be Done: (Way forward)
- Focus on Anti-Aging Research: India must invest in research on aging and regenerative medicine, exploring ways to slow down the aging process rather than just treating diseases.
- Strengthening Healthcare Systems: Expanding access to quality healthcare and preventive medicine to manage age-related diseases can enhance the quality of life in later years, even if life expectancy does not rise dramatically.
- Policy Support for Longevity Research: There is a need for policies supporting medical research into life-extension technologies, including drug trials and clinical studies focused on aging.
- Public Health Interventions: Improved public health measures targeting lifestyle diseases (obesity, diabetes) and better management of age-related conditions can enhance life span and overall well-being.
Mains PYQ:
Q The increase in life expectancy in the country has led to newer health challenges in the community. What are those challenges and what steps need to be taken to meet them? (UPSC IAS/2022)
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From UPSC perspective, the following things are important :
Mains level: Inclusive Growth; Middle-income trap;
Why in the News?
The World Development Report 2024 highlights the “middle-income trap,” where economies stagnate as growth slows. Only 34 middle-income nations advanced to high-income status in 34 years.
How does the World Bank define the threshold for middle-income economies?
- The World Bank defines middle-income economies as those with incomes between $1,136 and $13,845 per capita.
- The middle-income trap refers to a slowdown in growth when an economy reaches a certain income threshold, about 11% of U.S. per capita income.
- Only 34 middle-income countries have transitioned to higher-income status over the last 34 years, indicating the difficulty of escaping the middle-income trap.
Why is state intervention crucial for breaking the middle-income trap?
- State intervention is vital for coordinating development goals, as seen in South Korea and Chile, where governments played an active role in shaping industries and ensuring the private sector’s alignment with national development objectives.
- The state ensures investment, infusion of global technologies, and domestic innovation, which are critical for modern economies. This is known as the 3i approach (Investment, Infusion, Innovation).
- State intervention disciplines local elites, ensuring firms succeed based on performance, not political connections. Underperforming firms are allowed to fail, promoting efficiency and innovation.
What lessons can be drawn from South Korea and Chile?
- South Korea adopted a state-led industrialization strategy with a focus on export-driven manufacturing:
- The state actively directed private sector activities, ensuring businesses were competitive on the global stage.
- Chaebols (large business conglomerates) were supported based on their performance, promoting technological advancement and innovation.
- Chile achieved success by focusing on natural resource exports, like its salmon industry:
- The state’s role was crucial in developing and supporting industries with growth potential, showing how targeted interventions can help small but strategically important sectors thrive.
What challenges does India face in balancing state intervention with democratic values?
- Economic Power Concentration: India faces a growing concentration of wealth among powerful business houses, which are perceived to be closely linked to the state. This risks cronyism rather than performance-based growth, which could hinder innovation and investment.
- Manufacturing Stagnation: Unlike South Korea, India’s manufacturing sector has not experienced significant growth. With global export demand slowing and increased protectionism, manufacturing is less likely to drive India’s growth.
- Wage Stagnation: Real wage growth has been stagnant, as inflation erodes the benefits of nominal wage increases. This limits domestic demand, a critical factor in economic dynamism.
- Premature Deindustrialization: India, like many developing economies, faces premature deindustrialization, meaning that manufacturing’s contribution to GDP is declining at a lower level of income than historically seen in developed economies.
- Balancing State Intervention with Democracy: South Korea and Chile implemented aggressive state interventions under authoritarian regimes. However, India, as the world’s largest democracy, must ensure that growth strategies do not come at the cost of democratic values and labor rights.
World Bank recommendation to escape the middle-income trap:
World Development Report 2024: This report outlines a three-pronged approach for middle-income countries to escape the trap:
- Investment: Initially focusing on increasing investment.
- Technology Infusion: Incorporating modern technologies into domestic industries.
- Innovation: Ultimately fostering innovation to enhance competitiveness and productivity
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Way forward:
- Economic Growth Strategy: Niti Aayog CEO emphasized the need for a comprehensive economic strategy to avoid the middle-income trap, which he described as the “biggest threat” to India’s growth.
- Free Trade and Global Integration: Niti Aayog CEO advocated for increased openness to free trade and alignment with global value chains.
- Urban Development and Infrastructure: The government should focus on transforming urban areas into economic hubs, which is seen as crucial for driving growth.
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From UPSC perspective, the following things are important :
Mains level: Case pendency in judiciary;
Why in the News?
At the National Conference of the District Judiciary, President Droupadi Murmu emphasized the problem of court delays. She pointed out that these delays are causing people to hesitate in approaching the courts.
What are the primary causes of delays in the Indian judicial system?
- Ineffective Case Management: The lack of proper scheduling and timelines for filing documents, examining witnesses, and scheduling hearings leads to inefficiencies and prolonged delays.
- Lawyers often seek adjournments due to unpredictable scheduling or strategic reasons, leading to repeated postponements of hearings.
- Overburdened Judges: District court judges are often under pressure to prioritize cases based on higher court directives, skewing case management in favor of meeting deadlines rather than ensuring timely justice.
- Incentive Structure for Judges: The “units system” rewards judges for disposing of simpler cases, often causing more complex cases to be delayed or neglected.
- Extended Stays and Interim Orders: Litigants may use stays as a strategic delay tactic, reducing the urgency to resolve cases quickly.
- Unpredictable Witness Testimonies: Disruptions in the court schedule and procedural delays make it difficult for witnesses to attend court, further contributing to trial delays.
Status of the case pending in India:
- Total Pending Cases: As of 2024, there are over 58.59 lakh cases pending in high courts alone, with a staggering total of more than 51 million (5.1 crore) cases across all court levels, including district and Supreme Court.
- Long-standing Cases: Nearly 62,000 cases have been pending for over 30 years, with some dating back to 1952. In high courts, about 23% of cases have been pending for over ten years2.
- High Court Breakdown: The Allahabad High Court has the highest backlog, with over seven lakh cases pending as of 2018. Meanwhile, the Supreme Court currently has around 83,000 cases pending, marking a significant increase over the past decade despite an increase in the number of judges
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What impact do these delays have on public perception and access to justice?
- Erosion of Trust: Delays make the judicial process appear slow and ineffective, leading to public hesitation in approaching courts, fearing that litigation will complicate their lives.
- Increased Legal Costs: Prolonged cases escalate legal costs for litigants, making justice unaffordable for many.
- Reluctance to Seek Justice: The “black coat syndrome” highlights how people avoid courts due to the fear of endless adjournments and delays, diminishing access to timely justice.
- Backlog of Cases: The increasing backlog due to delays creates further congestion in the judicial system, perpetuating a cycle of inefficiency.
How can reforms improve the efficiency of the judiciary? (Way forward)
- Improved Case Management Systems: Implementation of Case Flow Management Rules with a focus on enforcing timelines for hearings and case disposal can streamline the process.
- Reformed Incentive Structures: Reform the “units system” to incentivize judges to handle complex cases more efficiently rather than prioritizing simpler ones.
- Predictable Scheduling for Lawyers: Providing clear scheduling information to lawyers can reduce unnecessary adjournments and improve case flow.
- Review of Stay Orders: Limiting the duration of stay orders and making them subject to regular review can discourage their misuse as delay tactics.
- Introducing real-time case management systems to track case progress and monitor delays could enhance judicial efficiency.
- Support for Witnesses: Offering financial compensation and providing predictability in court appearances can encourage witnesses to testify without unnecessary delays.
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From UPSC perspective, the following things are important :
Mains level: Wage issues in India;
Why in the News?
Approximately two-thirds of workers at Samsung’s flagship factory in Chennai have been on strike for a month, demanding higher wages, an eight-hour workday, improved conditions, and union recognition.
What are the main demands of the striking workers?
- Higher Wages: Workers are demanding increased salaries to improve their financial conditions.
- Eight-Hour Work Day: The employees seek the implementation of an eight-hour workday to ensure better work-life balance.
- Better Working Conditions: Strikers are advocating for improved health and safety standards in the workplace.
- Recognition of Labour Union: The workers want formal acknowledgment of their recently formed union, the Samsung India Workers Union (SIWU).
What is Samsung’s union policy?
- Historically, Samsung has maintained a strict no-union policy for over 80 years, resisting any collective bargaining efforts by employees.
- In July 2021, the company began to recognize unions after successful negotiations at Samsung Display and Samsung Electronics, allowing for some degree of collective bargaining.
- Samsung now has various unions representing its workforce globally, with significant representation in South Korea.
Why was SIWU unrecognised?
- Registration Challenges: SIWU’s registration has been opposed by Samsung management, citing trademark violations due to the use of the name “Samsung” in the union’s title.
- Legal Precedents: SIWU argues that trademark issues should not apply, as their activities do not involve commercial undertakings that could infringe on the trademark.
- Pending Legal Review: The case regarding SIWU’s registration is pending further court hearings, with the government examining objections raised by the management.
What has been the govt.’s response?
- Indifferent Stance: SIWU and the Centre of Indian Trade Unions (CITU) have accused the Tamil Nadu government of being indifferent and supportive of Samsung management, which the government denies.
- Support for Workers’ Rights: The government claims it considers the registration application in light of Samsung’s objections and aims to ensure fair treatment of both workers and management.
- CITU’s Position: Union leaders assert that government intervention in favor of management undermines the rights of workers and can deter unionization efforts, despite evidence showing that unions can benefit both employees and companies.
Present Legislation in India:
- Notice Period and Conditions for Strikes: Under the Industrial Relations Code, 2020, workers must provide a 14-day notice before striking, which cannot exceed a maximum of 60 days.
- Strike definition: The definition of a strike now includes “mass casual leave,” where over 50% of employees taking leave can be classified as a strike.
- Increased Flexibility for Employers: The code has increased the threshold for layoffs from 100 to 300 workers, allowing companies to lay off employees without government approval.
- This change aims to give employers greater flexibility in managing their workforce, which has raised concerns among labor unions about job security and workers’ rights.
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Way forward:
- Facilitate Dialogue and Mediation: Establish a formal dialogue between the workers, Samsung management, and government representatives to address grievances, negotiate demands, and work towards a mutually beneficial agreement.
- Strengthen Legal Framework for Union Recognition: Amend or clarify existing labor laws to ensure timely and transparent registration processes for unions, protecting their rights and enabling effective collective bargaining.
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From UPSC perspective, the following things are important :
Mains level: Issues related to gig workers;
Why in the News?
The ‘Fairwork India Ratings 2024’ highlights that platform aggregators in India fail to ensure local living wages and resist recognizing the collective rights of workers.
Who are the Gig Workers?
- Gig workers are individuals who take up short-term, flexible work assignments, typically managed via digital platforms. In the Indian context, gig workers operate in various sectors such as food delivery, ride-hailing, logistics, and personal/domestic care services.
- These workers are not considered employees in the traditional sense and often lack the benefits associated with full-time employment, such as job security, healthcare, and social protection.
- Examples of platforms using gig workers include Swiggy, Zomato (food delivery) Uber, Ola (transportation), etc.
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Key highlights as per the report:
- No Platform Scored Perfectly: No digital labor platform scored more than 6 out of 10 points, and none met all criteria across the five principles — Fair Pay, Fair Conditions, Fair Contracts, Fair Management, and Fair Representation.
- Fair Pay: Only BigBasket and Urban Company ensured a minimum wage, but no platform met the criteria for guaranteeing a living wage after work-related costs.
- Fair Conditions: Several platforms (e.g., Amazon Flex, Swiggy, Zepto) provided safety equipment and training, but only a few offered comprehensive accident insurance and income loss compensation.
- Fair Contracts: BigBasket, Swiggy, and others made contracts accessible and comprehensible, and provided data protection for workers.
- Fair Management: Platforms like BluSmart and Zomato implemented processes for addressing grievances and preventing discrimination.
Present Status of Gig Economy in India:
- Growth of the Gig Economy: India is witnessing rapid growth in the gig economy, with millions of workers depending on digital platforms for their livelihoods.
- The rise of app-based platforms such as Uber, Zomato, and Urban Company has driven the expansion of gig work across urban areas.
- Government Focus: Recent years have seen increasing political and legislative attention to gig worker welfare. Karnataka and Jharkhand are examples of states that have proposed new legislation to regulate platform work and protect gig workers’ rights.
- Worker Conditions: Despite the expansion of gig work, platforms in India still lag in ensuring fair pay, safety, and management of gig workers.
- The Fairwork India Ratings 2024 reveal that no platform scored above 6 out of 10, signaling considerable gaps in adhering to key labor standards.
Challenges faced by the Gig Economy
- Low Wages and Unstable Earnings: Many platforms fail to ensure a local living wage for workers after accounting for work-related costs. Only a few platforms like Bigbasket and Urban Company guarantee the local minimum wage, but none meet the standard of ensuring a living wage.
- Lack of Social Security and Benefits: Most gig workers lack access to benefits such as healthcare, insurance, and paid leave. While a few platforms provide accident insurance, broader social security protections remain elusive.
- Poor Working Conditions: Platforms often do not ensure adequate safety training or measures. While some like Swiggy, Zomato, and Zepto offer basic safety equipment and training, broader protections, especially in terms of income loss and sick leave, are limited.
- Inflexible Contracts: Contracts on platforms are frequently unclear, lengthy, and not always comprehensible for workers, making it difficult for them to fully understand their rights and obligations.
- Management Issues and Bias: Workers face arbitrary decisions and discipline without proper recourse. Though some platforms have mechanisms for workers to appeal decisions, few have adopted policies to ensure fairness in work allocation.
- Collectivization Challenges: Platforms resist recognizing gig workers’ right to form unions or collective bodies. Despite the growing movement for gig worker collectivization, no platform showed evidence of supporting or acknowledging these efforts.
Way forward:
- Strengthen Legal Protections and Social Security: Introduce comprehensive legislation ensuring gig workers receive fair wages, social security benefits like healthcare and insurance, and clear, comprehensible contracts.
- Promote Worker Representation and Fair Management: Encourage platforms to recognize collective bodies of gig workers, ensuring their right to unionize. Implement transparent and bias-free management practices, along with grievance redressal mechanisms, to improve working conditions and fairness.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Significance of food fortification;
Why in the News?
On October 9, 2024, the Union Cabinet approved extending the free fortified rice supply under welfare programs until December 2028.
Why Rice Fortification is needed?
- Widespread Micronutrient Deficiency: India faces a significant public health challenge with micronutrient deficiencies, particularly iron, Vitamin B12, and folic acid. Anaemia, caused by iron deficiency, is a persistent issue affecting large segments of the population, including children, women, and men.
- Rice as a Staple Food: Given that 65% of India’s population consumes rice as a staple, it is an ideal vehicle to deliver essential micronutrients to combat these deficiencies, helping improve overall health, productivity, and cognitive development.
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Process of Rice Fortification:
- Fortified Rice Kernels (FRK): The process involves producing fortified rice kernels that are enriched with essential micronutrients such as Iron, Folic Acid, and Vitamin B12.
- Blending with Regular Rice: These fortified kernels are then blended with regular rice at a ratio prescribed by FSSAI (Food Safety and Standards Authority of India).
- Typically, fortified kernels make up 1-2% of the total rice, ensuring consistent delivery of micronutrients without altering the taste or cooking properties of the rice.
How the Fortification Initiative has fared so far?
- The rice fortification scheme was implemented in three phases between 2022 and March 2024, with the target of achieving universal coverage in all government schemes by March 2024 successfully met.
- Fortified rice is now supplied under major welfare programs like the Targeted Public Distribution System (TPDS), Integrated Child Development Service (ICDS), and PM POSHAN in all states and Union Territories.
- The initiative is fully funded by the central government, highlighting its commitment to tackling malnutrition and ensuring inclusive nutritional security across the country.
How can food fortification help reduce malnutrition in India?
- Combats Micronutrient Deficiencies: Fortifying staple foods with essential nutrients like iron and vitamins helps reduce widespread deficiencies that cause anemia and poor health.
- Wide Reach: Through existing public programs (PDS, ICDS), fortified food reaches vulnerable populations, ensuring consistent nutrient intake for large segments of society.
- Cost-Effective: It offers a scalable, affordable solution to malnutrition, improving health outcomes without significant changes in diets or eating habits.
Way forward:
- Strengthen Monitoring and Quality Control: Implement robust monitoring mechanisms to ensure the consistent quality of fortified rice and its proper distribution across welfare programs to maximize nutritional benefits.
- Raise Awareness and Promote Consumption: Conduct awareness campaigns to educate the public on the health benefits of fortified rice, ensuring higher acceptance and consistent consumption to address widespread micronutrient deficiencies.
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From UPSC perspective, the following things are important :
Mains level: Impact of climate change;
Why in the News?
The World Meteorological Organization (WMO)‘s October 2024 report revealed that 2023 was the driest year for global rivers in 33 years, intensifying stress on water supplies globally.
What factors contributed to 2023 being the driest year for global rivers?
- Record High Temperatures: 2023 was marked as the hottest year on record, which significantly contributed to prolonged drought conditions and reduced river flows across many regions globally.
- Climate Change Impact: Rising temperatures have led to a more erratic hydrological cycle, resulting in both extreme droughts and flooding. This unpredictability has exacerbated water shortages in many areas.
- Transition from La Niña to El Niño: The climatic shift from La Niña to El Niño conditions in mid-2023 played a crucial role in altering weather patterns, leading to widespread dry conditions in many regions while simultaneously causing flooding in others.
- Glacier Melting: The report indicated that glaciers experienced their largest mass loss in 50 years, which threatens long-term water security for millions who rely on glacial meltwater for their water supply.
How has climate change impacted global water resources and glacier conditions?
- Increased Water Scarcity: The report highlighted that approximately 3.6 billion people currently lack reliable access to water for at least one month each year, a number expected to rise to over 5 billion by 2050 due to worsening water scarcity.
- Glacier Dependency: Many regions depend on glacial meltwater for their river systems. As glaciers continue to shrink, future water availability is jeopardized, particularly in areas like Europe and North America.
- Erratic Water Supply: The hydrological cycle’s acceleration leads to unpredictable rainfall patterns, causing both droughts and floods that disrupt agricultural and industrial water supplies.
What are the implications for global water access and management?
- Increased Demand vs. Supply Shortages: With growing populations and rising demand for water resources, the current trends indicate a critical imbalance between supply and demand, leading to heightened competition for available water resources.
- Need for Improved Monitoring: The WMO emphasizes the necessity for better data collection and sharing regarding water resources. This is crucial for effective management strategies that can adapt to changing conditions.
- Urgent Action Required: There is an urgent need for global cooperation and action to address these challenges. Enhanced monitoring systems and international collaboration are essential to mitigate the impacts of climate change on water resources.
Way forward:
- Strengthen Water Resource Management and Adaptation Strategies: Governments should implement integrated water resource management (IWRM) plans to address both water scarcity and flooding risks.
- Enhance Global Cooperation and Data-Driven Decision Making: Countries must prioritize data-sharing, improve monitoring of water resources, and foster cross-border collaborations to manage shared water systems effectively.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Fake propaganda against India ;
Why in the News?
On October 2, the Washington DC-based United States Commission on International Religious Freedom (USCIRF) released a country update on India, highlighting what it described as “collapsing conditions for religious freedom.”
Mandate of the USCIRF
- Monitoring Religious Freedom: The USCIRF is tasked with monitoring the universal right to freedom of religion or belief (FoRB) in countries outside the U.S. This includes assessing violations based on international human rights standards, particularly Article 18 of the Universal Declaration of Human Rights.
- Annual Reports: The commission produces annual reports that evaluate religious freedom conditions and recommend countries for designation as “Countries of Particular Concern” (CPC) or for inclusion on the “Special Watch List” (SWL).
- Policy Recommendations: USCIRF provides policy recommendations to the President, Secretary of State, and Congress regarding actions to address violations of religious freedom.
How does the UNSCIRF designate a country as a ‘Country of Particular concern’?
- Criteria for CPC Designation: A country is designated as a CPC if it engages in or tolerates “systematic, ongoing, and egregious violations” of religious freedom. This includes severe actions such as torture, prolonged detention without charges, and other flagrant denials of basic rights.
- Recommendation Process: The USCIRF assesses countries based on its findings and recommends those that meet the CPC criteria. The U.S. Secretary of State ultimately decides whether to accept these recommendations and designate countries accordingly.
How has the Indian government reacted to the report?
- Rejection of Findings: The Indian government has strongly rejected the USCIRF’s report, labeling it as biased and politically motivated. Officials argue that the commission misrepresents facts regarding religious freedom in India.
- Defense of Policies: The Ministry of External Affairs stated that India is committed to protecting the rights and freedoms of all its citizens, regardless of their faith, and urged USCIRF to refrain from agenda-driven narratives.
Way forward:
- Engage in Diplomatic Dialogue: India should proactively engage with international bodies like USCIRF to address concerns, clarify its stance, and present factual data on religious freedom, fostering mutual understanding.
- Strengthen Domestic Protections: India should reinforce legal and institutional frameworks to safeguard minority rights and religious freedoms, ensuring transparent mechanisms to address grievances and counter negative perceptions globally.
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From UPSC perspective, the following things are important :
Prelims level: Textile sector;
Why in the News?
Union Minister announced the Indian textile sector’s $350 billion business target by 2030, aiming to generate 3.5 crore jobs, despite recent challenges affecting the projected 10% CAGR.
Present Status:
- The Indian textile and apparel industry is currently valued at $153 billion (2021), contributing significantly to India’s GDP (2.3%) and manufacturing GVA (10.6%).
- The industry employs around 105 million people and is highly dependent on global markets, with 80% of its capacity in MSMEs.
- India was the third largest textile exporter in FY22, but faced a slowdown in FY23 and FY24, with significant drops in exports and domestic demand.
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What caused the slump in the Indian textile sector in the last two financial years?
- Geopolitical Tensions: Global geopolitical issues reduced demand in key export markets.
- High Raw Material Prices: Cotton and Man-Made Fibre (MMF) prices surged, hurting competitiveness.
- Import Duties: A 10% import duty on cotton made Indian cotton more expensive than global prices.
- Supply Chain Disruptions: Quality control measures affected the availability and price stability of MMF, further straining production.
What are the other challenges?
- Evolving Business Models: The rise of e-commerce and direct-to-consumer retailing is reshaping traditional business systems in the textile industry.
- Sustainability Standards: Global brands are increasingly focusing on ESG (Environmental, Social, and Governance) criteria, forcing Indian manufacturers to adopt sustainable practices.
- Changing Consumer Preferences: Growing demand for comfort wear, athleisure, and multi-brand outlets is shifting consumer behavior, impacting smaller or less-known brands.
- Labour Costs and Productivity: Labour constitutes 10% of production costs, and the industry faces pressure to improve productivity through technology adoption and workforce skilling.
Way forward:
- Enhance Global Competitiveness: The government should consider reducing import duties on key raw materials like cotton and stabilize supply chains by aligning domestic prices with international markets, ensuring competitiveness in global exports.
- Invest in Technology and Sustainability: The industry should focus on adopting advanced technologies to improve productivity and meet global ESG sustainability standards, while simultaneously upskilling the workforce to handle these technological advancements effectively.
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From UPSC perspective, the following things are important :
Mains level: India’s relation with major powers in the world;
Why in the News?
India’s participation in the sixth Quad Leaders’ Summit in Wilmington, Delaware, U.S., on September 21, 2024, has heightened expectations for strengthening security cooperation among the “four key maritime democracies in the Indo-Pacific.”
How can India navigate its relationships with major powers?
- Strategic Autonomy: India maintains a policy of non-alignment, balancing relations with both the U.S. and Russia. It is careful not to be drawn into formal alliances but seeks to leverage its partnerships for national interests.
- Quad vs. Russia: India’s engagement with the U.S.-led Quad strengthens its Indo-Pacific strategy, while its ties with Russia (a Quad opponent) focus on maintaining historical military and strategic benefits.
- Russia-China Dynamics: As Russia moves closer to China, India seeks to rebalance, ensuring its interests are not sidelined, particularly in the context of China’s growing influence in Asia and unresolved border disputes.
- U.S. Partnership: While deepening ties with the U.S., India is cautious about fully aligning with Washington’s agenda (for exports), especially regarding tensions with Russia.
What role does India play in Global Conflict Resolution?
- As a Peace facilitator: India is increasingly positioning itself as a peace facilitator, evidenced by the NSA (Ajit Dowal) of India’s outreach to Russia and France regarding the Ukraine conflict and peace plan.
- As a ‘Vishwa Bandhu’: India’s engagement with both Ukraine and Russia shows its willingness to serve as an interlocutor, navigating complex diplomatic terrains while pushing for dialogue in global conflicts.
- India’s attempts to mediate in conflicts like Ukraine emphasize its independent foreign policy, aiming to project itself as a “Vishwa Bandhu” (friend to the world).
What implications do Domestic Issues have on India’s Foreign Policy?
- Economic Dependencies: India’s reliance on Russian military equipment and discounted oil affects its stance on the Ukraine war, pushing for a more nuanced approach in balancing U.S. and Russian relations.
- Border Tensions with China: Domestic security concerns, such as the standoff at the LAC, influence India’s foreign policy decisions, especially in its cautious relationship with China despite economic interdependence.
- Public Opinion and Strategic Decisions: India’s foreign policy must account for domestic perceptions of global powers, balancing national security with economic growth and political stability in a complex international environment.
Way forward:
- Strengthen Strategic Autonomy: India should continue balancing its relationships with major powers by deepening economic and security ties with both the U.S. and Russia, while maintaining flexibility to protect its national interests, particularly in the Indo-Pacific and vis-à-vis China.
- Expand Peace Diplomacy: India can further leverage its role as a mediator in global conflicts, enhancing its international standing by promoting dialogue and peace initiatives.
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From UPSC perspective, the following things are important :
Prelims level: Sustainable Development;
Mains level: Issues associated with Urbanization; Sustainable development; High-performance building;
Why in the News?
Due to rapid urbanization, India is facing the challenge of exceeding global energy efficiency and carbon benchmarks. High-performance buildings (HPBs) offer resilient, adaptive, and self-sufficient designs, promoting healthier indoor environments and better air quality.
What are High-Performance Buildings (HPBs)?
- These are structures designed to achieve peak levels of energy efficiency, sustainability, and occupant comfort.
- They go beyond standard building practices by integrating advanced technologies and smart design strategies to minimize environmental impact, optimize resource use, and improve overall performance.
- For example, Unnati (Greater Noida) and Indira Paryavaran Bhawan (New Delhi) showcase smart designs like sun-optimized facades and advanced HVAC systems, reducing energy use.
Key features of HPBs include:
- Energy Efficiency: HPBs use cutting-edge technologies like energy-efficient HVAC systems, smart lighting controls, and advanced insulation to reduce energy consumption.
- Water Conservation: Techniques like greywater recycling and rainwater harvesting help HPBs minimize water usage.
- Sustainable Materials: HPBs use eco-friendly, durable materials to reduce their carbon footprint and increase building longevity.
- Site-Specific Design: HPBs leverage natural lighting, ventilation, and terrain-specific water management to enhance thermal efficiency and reduce energy demand.
- Building Management Systems (BMS): HPBs employ BMS to monitor real-time performance metrics such as energy usage, water consumption, and indoor air quality, ensuring continuous optimization of resources.
How can HPBs help Indian cities?
- Resource Efficiency: HPBs help reduce energy consumption and promote water conservation, addressing India’s resource scarcity and fluctuating energy markets.
- Urban Resilience: By being energy-efficient and self-sufficient, HPBs can help cities adapt to rising temperatures and urbanization pressures.
- Healthier Environments: HPBs enhance indoor air quality, thermal comfort, and occupant well-being through intelligent systems like air filtration, natural lighting, and smart temperature control.
- The strain on Infrastructure: HPBs can relieve pressure on public infrastructure by minimizing resource usage, making them crucial for fast-growing cities.
- Sustainable Growth: HPBs are key to driving India’s transition to a low-carbon economy, supporting sustainable urbanization, and enhancing property value through long-term cost savings.
Way Forward:
- Scaling Adoption of HPBs: Promote widespread implementation of HPBs through government incentives, regulations, and public-private partnerships, aligning with SDG Goal 11 (Sustainable Cities and Communities) to foster inclusive, safe, and resilient urban spaces.
- Innovation and Capacity Building: Encourage innovation in building technologies and workforce training to develop HPBs, contributing to SDG Goal 7 (Affordable and Clean Energy) by ensuring energy efficiency and reducing carbon emissions in cities.
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From UPSC perspective, the following things are important :
Prelims level: Passive mutual fund;
Mains level: Liberalisation of mutual funds;
Why in the News?
On September 30, the Securities and Exchange Board of India (SEBI) launched the liberalized Mutual Funds Lite (MF Lite) framework specifically for passively managed schemes.
What is a Passive Mutual Fund?
- A Passive Mutual Fund is a type of investment fund that follows a market index, like Nifty50, trying to match its performance.
- They can be easily tracked, whereas, Active Mutual Funds need expert fund managers to actively monitor them and make investments in securities of their choice accordingly.
- Since there’s no need for constant research, analysis, or active trading the costs are lower.
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Key highlights of the liberalized Mutual Funds Lite (MF Lite) framework:
- Separate Framework for Passive Funds: It is tailored for passively managed schemes, which are less risky and require minimal active management.
- Relaxed Entry Requirements: Lowered net worth requirement (₹35 crore), simplified criteria for sponsor eligibility (profitability, track record).
- Encouraging New Players: It provides easier entry for new AMCs (Asset management companies) and market players in the passive fund segment.
- Governance Flexibility: It has reduced oversight for trustees; operational responsibilities shifted to AMC boards, focusing on fees, expenses, and tracking error.
- Cost Efficiency Focus: It emphasizes on lowering Total Expense Ratio (TER) and minimizing tracking error for better returns.
- Simplified Disclosures: The Scheme Information Documents (SID) are simplified to focus on key metrics like benchmark index, TER, and tracking error.
- Risk Management: Audit committees of AMCs can handle risk management duties due to the lower risk profile of passive funds.
Why a Separate Framework for MF Lite is Needed?
- Lower Risk Profile: Passively managed funds are generally less risky because they track established benchmarks like BSE Sensex or Nifty50, reducing the need for active decision-making.
- Minimal Asset Manager Discretion: Unlike actively managed funds, asset managers of passive funds have limited discretion in asset allocation and investment objectives. They simply mirror the performance of the benchmark index.
- Inapplicability of Existing Regulations: The current framework is designed primarily for actively managed funds, which involve more risks and require more oversight. It is less suitable for passive funds, which operate with predefined, transparent rules.
- Cost-Effective Market Entry: To encourage new players and make the passive fund industry more competitive, SEBI introduced relaxed regulations regarding eligibility, net worth, and profitability.
What about risks and disclosures?
- Success depends on Total Expense Ratio (TER) and tracking error. Lower costs and minimal deviation from the benchmark are crucial for performance.
- Scheme Information Documents (SID) focus on key metrics like the benchmark name, TER, and tracking error, leaving out complex strategies.
- Risk management responsibilities are streamlined, allowing the audit committee of the AMC to handle oversight, reflecting the lower risks of passive funds.
Way forward:
- Enhance Investor Education: Develop targeted educational initiatives to inform retail investors about the benefits, risks, and operational aspects of passive mutual funds, fostering informed investment decisions.
- Ongoing Regulatory Evaluation: Establish a framework for periodic assessment and adaptation of the MF Lite regulations to ensure they remain effective and relevant, promoting competition while safeguarding investor interests.
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From UPSC perspective, the following things are important :
Mains level: Impact of Globalisation on the economy;
Why in the News?
External Affairs Minister S. Jaishankar highlighted that over the past 25 years, globalisation has led to job losses and dissatisfaction in many societies, as trade has become both globalised and weaponised.
How is trade being weaponised in global politics?
- Trade is increasingly being used as a strategic tool by countries, intertwined with national security concerns. Nations impose tariffs, subsidies, and other economic measures as defensive actions to protect domestic industries and geopolitical interests.
- Technologies and supply chains are viewed through a national security lens, leading to greater control over economic interactions.
Note: Economic and military power comes under hard power.
What implications does this weaponization of trade have for India and its foreign relations?
- Rising Protectionism: India has responded to this trend by imposing over 30 anti-dumping measures against Chinese goods in 2024 alone. These defensive actions are meant to shield Indian industries from what is perceived as China’s predatory pricing strategies.
- Impact on Global Supply Chains: As global supply chains become more transnational, India’s ability to secure its interests, especially in high-tech sectors, becomes crucial.
- India is balancing its integration into the global economy while protecting critical sectors from foreign influence, especially from China.
- Foreign Relations: India’s foreign policy is increasingly being shaped by economic security concerns.
- Trade disputes, such as those with China, have prompted a re-evaluation of economic partnerships and collaboration within frameworks like the Indo-Pacific to reduce dependency on potentially adversarial nations.
What historical context informs India’s current approach to trade and international relations?
- China’s Entry into WTO (2001): India, like many other countries, faced economic repercussions when Chinese goods flooded global markets after China joined the WTO. This led to job losses and industrial competition.
- Globalization and Job Losses: The rapid globalization of the past 25 years has contributed to domestic job losses and dissatisfaction in various sectors in India.
- Strategic Autonomy: India’s foreign relations have historically been guided by a principle of strategic autonomy.
- This informs its cautious stance on fully integrating into global supply chains without safeguarding critical industries, and influences its desire to promote reforms in Multilateral Development Banks (MDBs) to suit developing nations’ needs.
Way forward:
- Strengthening Domestic Industries: India should continue enhancing self-reliance through initiatives like Make in India and Atmanirbhar Bharat, focusing on boosting high-tech sectors and reducing dependency on foreign imports, especially from adversarial nations like China.
- Diversifying Trade Partnerships: India must deepen economic ties with friendly nations and regional alliances such as the Indo-Pacific, while advocating for reforms in global trade systems like the WTO and MDBs to ensure fair competition and support for developing economies.
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