9 PM Daily Current Affairs Brief – August 31st, 2023

Mains Oriented Articles

GS PAPER - 2

Cross the boulders in the Indus Waters Treaty

Source– The post is based on the article “Cross the boulders in the Indus Waters Treaty”, Published in “The Hindu” on 31st August 2023.

Syllabus: GS 2 – International Relations – Bilateral groupings and agreements

Relevance: India and Pakistan bilateral relationship

News– The Indus Waters Treaty (IWT), brokered by the World Bank, which has again become a source of contention between India and Pakistan, considerably encapsulates the principle of equitable allocation rather than the principle of appreciable harm.

What are some facts about the Indus water treaty?

India and Pakistan are both granted exclusive privileges to utilise the waters from their designated rivers without causing harm to the interests of others.

According to the Indus Waters Treaty, India possesses unrestricted rights over Ravi, Beas, and Sutlej. Pakistan holds similar entitlements over Indus, Jhelum, and Chenab.

India has been authorised to store a total of 3.60 million-acre feet (MAF) of water (0.40 MAF on the Indus, 1.50 MAF on the Jhelum, and 1.70 MAF on the Chenab).

What are contentious issues between India and Pakistan regarding IWT?

The current focal point of contention between India and Pakistan revolves around India’s Kishanganga and Ratle hydroelectric power plants located in the Jammu and Kashmir region.

India views these projects as essential for meeting its energy requirements and fostering regional development. Pakistan alleged violations of the treaty and potential adverse impacts on its water supply.

The Kishanganga project dispute was brought before the Court of Arbitration in 2010. The CoA delivered its final verdict in 2013.

CoA determined that the Kishanganga hydroelectric project constitutes a run-of-the-river dam. India, under the IWT, is permitted to divert water from the Kishanganga/Neelum River for power generation.

The court specified that India must maintain a minimum water flow of nine cubic metres per second in the Kishanganga river.

Following the CoA’s decision, the two nations reached an agreeable resolution on only one of the four issues that were anticipated to be settled.

Despite numerous discussions, the other three matters related to pondage and spillway configuration remained unresolved.

As a result, Pakistan appealed to the World Bank. It accused India of breaching the IWT and the court’s ruling. Pakistan also voiced objections to the Ratle project.

In 2016, Pakistan requested the World Bank to establish a CoA. It prompted India to propose the appointment of a neutral expert to address the dispute.

The World Bank halted progress on the Kishanganga and Ratle projects to explore alternative ways by two countries to resolve their disagreements.

Despite the pause, work on the Kishanganga project persisted. In 2018, Prime Minister Narendra Modi inaugurated it. Pakistan raised its concerns with the World Bank.

In October 2022, the World Bank designated Michel Lino as the neutral expert and Professor Sean Murphy as the Chairman of the CoA.

On July 6, 2023, the Permanent Court of Arbitration unanimously dismissed India’s objections and confirmed its authority to address and resolve the disputes brought by Pakistan.

India has chosen not to engage in the PCA proceedings and was absent from the recent hearing as well. India asserted that it cannot be forced to acknowledge or participate in unlawful and concurrent proceedings not stipulated by the Treaty.

What should be done?

Rather than resorting to legal action, the focus should be on integrating the principles of “equitable and reasonable utilisation” as well as the “no harm rule” into the Indus Waters Treaty (IWT).

This incorporation necessitates improved relations and enduring trust between India and Pakistan.

The involvement of local stakeholders in any negotiation process on shared water matters between India and Pakistan is crucial.

The establishment of a collaborative team comprising experts in technology, climate, water management, and scientific fields from both countries could be effective in addressing the root of the problem.

To ensure the effectiveness of the IWT, the exploration of cooperative arrangements is essential. Both countries must acknowledge their shared interest in the optimal development of the Indus River System.

Share the distress – on Cauvery water sharing

Source– The post is based on the article “Share the distress” published in “The Hindu” on 31st August 2023.

Syllabus: GS 2 – Indian Polity – Issues pertaining to federalism

News– The article explains the recent disputes between Tamil Nadu and Karnataka on sharing of Cauvery water.

What is the point of contention between Tamil Nadu and Karnataka on Cauvery water sharing?

Tamil Nadu currently faces a cumulative shortage of approximately 51 thousand million cubic feet in its allocated water share as of August 28.

The request has been for 24,000 cubic feet per second (cusecs) at Billigundulu on the interstate border for the latter half of August.

Tamil Nadu has approached the Supreme Court to direct Karnataka to release the prescribed 36.76 tmc ft for September, as defined by the Cauvery Water Disputes Tribunal’s final award in 2007 and modified by the Court in February 2018.

Karnataka, in its submitted affidavit, has informed the Court that the catchment areas of its two primary reservoirs have experienced below-average rainfall.

The CWMA has also evaluated that the inflow deficiency to Karnataka’s four reservoirs in the basin stands at about 51%. The Authority’s stance asserts that Tamil Nadu has “failed to comprehend that 2023 is a year of water scarcity.”

What is the way forward for dispute resolution on Cauvery River?

There is a necessity for a distress-sharing framework that is mutually preferred. This concept, initially endorsed by the Tribunal in its final ruling and reaffirmed by the Court’s 2018 judgement revolves around a proportional reduction in allocated shares.

CWMA must ensure that its decisions are not perceived as being influenced.

It is imperative for both states to prevent the Cauvery River from becoming a source of discord.

The need for an Indian system to regulate AI

Source: The post is based on the article “The need for an Indian system to regulate AI” published in The Hindu on 31st August 2023.

Syllabus: GS 2- Governance – government policies for various sectors

News: In this article, the author talks about AI regulation differences in the West and East. They highlight how the West uses risk-based rules, while the East prioritizes values and morality. The author suggests India should make regulations based on its own culture and laws, rather than copying the West.

What are the major differences in AI regulation between the Western and Eastern worlds?

Western World:

Risk-Based Approach: Western regulations categorize AI applications based on risk, e.g., the EU has ‘unacceptable risk’, ‘high risk’, ‘limited risk’, and ‘low risk’.

Specific Guidelines: They provide explicit rules on what must be done and set penalties for non-compliance. For instance, the EU specifies prohibited activities for ‘unacceptable risks’.

Eurocentric Jurisprudence: Rooted in a Eurocentric view of law, they focus on clear rules and punishments for violations.

Eastern World:

Value-Centric Approach: Asian countries like Japan and China focus on the values and ends, that AI should uphold and achieve.

Intuitive Regulations: The laws indicate desired outcomes and underlying moral principles. For example, Japan’s “Social Principles of Human-Human-Centric AI” highlights principles society and the state should respect.

Blend of Law and Morality: Eastern regulations often merge legality and morality. China’s regulations emphasize respecting social morality and ethics while using AI.

What needs to be done by India?

Avoid Mimicking the West: The author advises against copying Western models of AI regulation, as emphasized by NITI Aayog’s references to Western countries.

Embrace Eastern Ethos: India should look to its cultural and legal traditions. Eastern models, like Japan’s and China’s, offer potential guidance.

Reconnect with Roots: Drawing from ancient Indian legal systems, which centered on end goals and moral values, can be invaluable.

Consider Judicial Perspectives: Justice V. Ramasubramaniam’s judgments suggest that Indian regulations should include traditional Indian concepts, such as the Sanskrit epigram “neti neti,” to contextualize them. This implies that India’s approach wouldn’t rigidly follow either Western or Eastern models but would discover its own balanced and distinctive path.

The NCF will raise standards of school education in the country

Source: The post is based on the article “The NCF will raise standards of school education in the country” published in “Live Mint” on 31st August 2023.

Syllabus: GS2- Social Issues – Issues relating to development and management of Social Sector/Services relating to Health.

News: This article talks about India’s National Curriculum Framework (NCF) introduced by the Ministry of Education. The NCF gives school education guidelines, focusing on diverse learning and a balanced approach. It aims to improve teaching and learning while considering available resources.

What is the National Curriculum Framework (NCF)?

Nature: It’s a framework released by the Ministry of Education in India, meant to guide school education.

Definition of Curriculum: The NCF views curriculum as the entire experience of children in schools, covering learning goals, syllabus, teaching methods, materials, classroom practices, and the overall culture of schools.

Function: The NCF isn’t a curriculum by itself. Instead, it describes the principles, goals, structures, and elements for the development of curricula.

Depth: The NCF provides clear guidance to educators by going beyond general principles. For example, it doesn’t just mention the importance of equity and pluralism in schools; it also provides specific practices that can help instill these values in students.

How does the NCF benefit the country?

Harmony and Cogency: The NCF provides a common framework that ensures consistency in school education across different states in India.

Federal Integrity: It supports the country’s federal structure by offering a national perspective, while recognizing the authority of states over school education.

Clear Guidance: By blending broad principles with specific illustrative practices, the NCF aids education practitioners, from teachers to textbook authors, in translating its guidelines into actionable strategies.

Inclusivity of Aspects: Beyond academic subjects, the NCF emphasizes the importance of elements like arts and culture, illustrating its comprehensive approach.

Practicality: It is designed to be implemented using the resources schools currently have, showcasing its realistic and adaptable nature for the diverse educational landscapes across the country.

What are the major challenges of the NCF?

Resource Dependency: While the NCF emphasizes its ability to work with existing resources, schools still face the challenge of not having specialized resources. For instance, the article mentions the potential lack of arts teachers.

Practical Implementation: Achieving the learning standards set by the NCF, especially without specific subject teachers, presents practical challenges to schools.

Misaligned Public Focus: The media’s primary attention on board exam suggestions reflects society’s testing-focused mindset. This narrow viewpoint can overshadow the NCF’s broader educational objectives.

Delayed Resource Allocation: Waiting for resources, such as specialized arts teachers, can take up to 10-15 years, making it challenging to implement the NCF’s full vision immediately.

Translating Guidelines to Action: Despite the NCF’s specific guidance, turning these guidelines into actionable classroom practices remains a task for educators.

Connecting SR and social stock exchange

Source: The post is based on the article “Connecting SR and social stock exchange- Allowing social stock exchanges to facilitate (SR funding of projects could catalyse change by improving outcomes” published in “Business standard” on 31st August 2023.

Syllabus: GS2- Development processes and the development industry the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders & GS4- corporate governance

News: The author talks about combining India’s corporate social responsibility (CSR) spending with the social stock exchange (SSE) to improve the impact of CSR investments. They mention challenges like regional imbalances and the inclusion of smaller non-profits.

What is CSR?

Corporate Social Responsibility (CSR) is a legal obligation for certain companies in India to allocate a portion of their profits towards socially beneficial activities. These activities are meant to have a positive impact on society, the environment, and local communities.

Current Status of CSR in India:

India has a unique stance, making it mandatory for specific companies to spend on CSR activities.

This is governed by Section 135 of the Indian Companies Act, 2013.

As per recent data from the Ministry of Corporate Affairs (MCA), companies in India spent ₹25,933 crore on CSR in FY22.

What are the challenges in current CSR spending?

Regional Imbalance: CSR spending is concentrated in a few states, neglecting others, especially the northeastern regions.

Planning and Execution: There’s a lack of professional planning and broad scattering of funds across various sectors.

Capacity Constraints: Companies with smaller CSR budgets face difficulties in implementing meaningful projects.

What is the Social Stock Exchange (SSE)?

Purpose: SSE is designed for eligible non-profit organizations (NPOs) to raise funds.

Instruments: SSE offers innovative financial instruments such as:

1. ZCZPs: Zero coupon zero principal mechanisms issued by NPOs promising social returns.
2. SIFs: Social impact funds investing in both NPOs and for-profit social ventures.
3. DIBs: Development impact bonds wherein grants are given to NPOs based on achieved social metrics.

Regulatory Framework: SEBI has set disclosure and reporting norms for participants in the SSE.

How can SSE and CSR be integrated?

CSR Funds in SSE Instruments: Companies can channel their CSR funds into SSE instruments like ZCZPs and SIFs.

Outcome Funders: Corporations can act as “outcome funders” in Development Impact Bonds (DIBs), rewarding NPOs for achieving set social metrics.

Escrow Account for CSR Capital: CSR funds can be held in escrow accounts until NPOs achieve project outcomes.

Trading CSR Credits: Companies could trade CSR spends on the SSE, allowing some to meet their CSR commitments by buying credits from others that exceed their mandated spending.

SSE Facilitation: The SSE can help streamline CSR funding for impactful projects.

What challenges exist for integrating CSR and SSE?

Challenges in Integrating CSR and SSE:

Local Preference Dilemma: Current laws, specifically Section 135 of the Act, mandate companies to prioritize local areas for CSR activities. Pooling funds on SSE might not align with this local focus.

Crowding Out Smaller NPOs: As more CSR funds might be channeled towards prominent NPOs listed on the SSE, smaller entities could get overshadowed, limiting their access to essential funding.

SIF and ZCZP Constraints: When pooling CSR funds in Social Impact Funds or investing in ZCZPs, ensuring adherence to the local preference mandate can be a challenge.

Duration Constraints: Using CSR funds in DIB structures would necessitate locking in the capital for several years, until NPOs materialize their project outcomes.

Legal Adjustments: To ensure a seamless integration of CSR and SSE, tweaks in the existing laws might be required.

What should be done?

Facilitate CSR in SSE: The government should enable companies to use the SSE for CSR funding of projects.

Revise Local Preference: Adjust laws regarding the local preference mandate to accommodate pooling of funds on SSE.

Protect Smaller NPOs: Set a ceiling on CSR funds directed towards larger NPOs on the SSE to ensure smaller entities aren’t overshadowed.

Introduce Robust Systems: Implement systems to identify credible NPOs for efficient investment of CSR funds.

Allow CSR Credit Trading: Permit companies to trade CSR credits on the SSE to fulfill their commitments.

GS PAPER - 3

Understanding curbs on rice exports

Source– The post is based on the article “Understanding curbs on rice exports” published in “The Hindu” on 31st August 2023.

Syllabus: GS 3 – Agriculture

News– The Indian government has prohibited the export of white rice, levied a 20% export duty on par-boiled rice till October 15, and permitted the export of Basmati rice for contracts with value of $1,200 a tonne or above.

What is the rice production estimate in the country?

As per the latest Advanced Estimate from the Department of Agriculture and Farmers Welfare, rice production during the Rabi season of 2022-2023 witnessed a decrease of 13.8%.

It was 158.95 lakh tonnes compared to the 184.71 lakh tonnes recorded during the Rabi season of 2021-2022.

Regarding Kharif sowing data, it indicates that rice has been cultivated on 384.05 lakh hectares up to August 25 this year, in contrast to the 367.83 lakh hectares during the same period last year.

However, in certain states like Tamil Nadu, some farmers anticipate delayed planting due to insufficient rainfall from the southwest monsoon.

What are statistics related to rice exports?

India holds the position of being the world’s largest exporter of rice. It has a significant 45% share in the global rice market.

Shipments of non-Basmati rice recorded a growth of 7.5% in May despite the imposition of a 20% export duty on white rice and the prohibition of broken rice exports by the government in September last year.

The export of non-Basmati rice has demonstrated a consistent upward trend over the past three years.

According to government-provided statistics, up until August 17 of this year, total rice exports have surged by 15%. It reached 7.3 million tonnes in contrast to the 6.3 million tonnes during the same period last year.

What will be the impact of recent government decisions on rice farmers and consumers?

The government has raised the Minimum Support Price for rice. The rice millers are currently procuring paddy at rates exceeding the MSP. This means that farmers will not experience a decline in prices.

Export restrictions are in place to prevent a sudden surge in rice prices within the market.

There is a marginal present increase in rice prices for domestic consumers. But, the long-term outlook ensures both availability and stable prices. The situation regarding arrivals and government policy will become clearer around mid-September.

For more reading- https://forumias.com/blog/the-case-for-uniform-minimum-export-price-for-rice-without-basmati-distinction/

Spare a thought for our food delivery personnel

Source: The post is based on the article “Spare a thought for our food delivery personnel” published in Live Mint on 31st August 2023.

Syllabus: GS3- Indian Economy – Employment

News: In this article, the author talks about challenges for India’s food delivery workers in the gig economy. They mention issues like not enough work, bad working conditions, and lower wages. The author asks for better jobs and treatment for these workers.

What are the major outcomes of the National Council of Applied Economic Research (NCAER) study?

The National Council of Applied Economic Research (NCAER) study on India’s food delivery agents revealed:

Demographics: The majority of delivery agents are male, with nearly two-thirds under 30 years of age.

Education Levels: Surprisingly, over 45% have college degrees or technical training, suggesting underemployment.

Work Conditions: While they have formal contracts, their conditions aren’t necessarily better than informal-sector jobs.

Benefits and Drawbacks: Higher earnings and flexible hours attract many to the job. However, long-shift workers face tough conditions, with accident coverage as their sole health benefit.

Expenses: Agents must use their own phones, vehicles, and fuel. They aren’t compensated for advertising signage.

Career Prospects: Many view the role as a temporary job with limited growth potential.

Earnings: Over three years from 2019, their earnings did not keep up with inflation, effectively decreasing in real terms.

What needs to be done?

Fair Compensation: Ensure wages keep pace with inflation.

Benefits Improvement: Beyond just accident coverage, explore more comprehensive health and safety benefits.

Address Underemployment: Utilize the educational qualifications of agents for better roles within the industry.

Reimburse Expenses: Compensate for personal items used, like phones and vehicles.

Career Growth: Provide clear paths for upward mobility within the sector.

Welfare Measures: Explore levies on gig platforms, like Rajasthan’s initiative, for worker welfare.

Lives at stake – Poor air quality is a public policy failure

Source: The post is based on the article “Lives at stake – Poor air quality is a public policy failure” published in Business Standard on 31^st August 2023.

Syllabus: GS 3 – Environment

Relevance: concerns with rising air pollution

News: The results of the air quality life index study by the Energy Policy Institute at the University of Chicago highlight a concerning situation for India.

What are the findings of the index?

The study found that all Indians live in areas with air pollution above WHO limits. Delhi is the world’s most polluted city, and people there lose 12 years of life due to air pollution.

However, the problem is not limited to Delhi, as 67% of Indians live in areas that exceed India’s national standard for air pollution.

What are the reasons behind rising air pollution? 

Ineffective Policies: Air pollution in India is primarily due to ineffective policies that neglect key pollution sources, especially PM 2.5 particles.

In 2019, India launched the National Clean Air Programme to lower PM2.5 and PM10 levels by 20-30% by 2024 from 2017. However, the policy has been ineffective.

Moreover, India remains one of the world’s largest consumers of coal. Most of India’s electricity comes from polluting coal plants while renewable energy, mainly solar, only accounts for 12% of the energy mix.

High Cost of Renewable Energy: The low share of renewable energy is due to high tariffs on imported solar panels, complex domestic sourcing norms, and unresolved power price and technical issues.

These factors discourage state-owned distribution companies from adopting renewables.

Issues with Electric Vehicles (EVs): India’s push for electric vehicles (EVs) to cut emissions is hindered by its reliance on fossil fuels. Charging stations for EVs are powered by polluting thermal sources, exacerbating the issue. Misdirected subsidies have also affected the adoption of EVs by consumers.

Construction Dust: Construction dust is another major source of pollution, and it is overtaking vehicular pollution. The National Green Tribunal has mandated several procedures for reducing dust pollution at construction sites, but these are not being followed.

Stubble Burning: Stubble burning is a problem that envelops north India in a grey haze each year. This problem is caused by agricultural policies that encouraged water-intensive crops to be grown in water-poor areas.

What is the way ahead?

Air pollution disproportionately affects the poor and middle classes. The rich can afford to insulate themselves from the effects of pollution, but the average Indian has no escape. Therefore, politicians who care about the poor should make clean air a top priority.

Ahead of GDP data release today, growth trends, outlook

Source: The post is based on the article “Ahead of GDP data release today, growth trends, outlook” published in The Indian Express on 31^st August 2023.

Syllabus: GS 3 – Indian Economy – Growth & Development

Relevance: About GDP forecast of the first quarter for FY 2023-24

News: The National Statistical Office (NSO) will release the official GDP data for April-June (Q1) on Thursday evening.

What are the expected growth forecasts for the first quarter of FY 2023-24?

India’s Q1 GDP is likely to increase due to increased government spending, services sector growth, and a favorable base, with estimated growth of 7.7-8.5%.

However, growth is also predicted to slow in subsequent quarters due to factors like El Nino’s impact on monsoon, mining output decline, weak exports, and potential government capex slowdown.

Further, the RBI revised GDP growth forecast for Q1 FY24 to 8% from 6%, following higher-than-expected growth in Q4 FY23. Most economists also forecast higher GDP growth of 7.7-8.5%. RBI expects full year (FY24) growth at 6.5%.

Several agencies project India’s Q1 FY24 GDP growth at 7.7-8.5%, led by ICRA’s 8.5% and SBI Research’s 8.3%.

What are the reasons behind this growth?

This growth is being driven by service demand recovery and increased investment, especially in government capital expenditure.

In Q1 FY24, capital expenditure surged, with the central government spending 27.8% of its budget and states spending 12.7% of their budget.

Andhra Pradesh, Telangana, and Madhya Pradesh recorded notable capital expenditure growth, reaching up to 41%.

What are the predictions for growth in different sectors?

Banking: Incremental deposits have nearly doubled, and credit demand rose despite rising interest rates. Both public and private sector banks are expected to show similar loan growth in Q1 FY24. PSBs’ performance has also improved significantly.

Construction: The construction sector is likely to achieve its second consecutive double-digit growth in the April-June GDP data, due to the substantial government capital spending and increased corporate investments.

Mining and Export: Growth could be constrained by mining and export challenges due to external factors and lower demand during post-lockdown reopening.

Hence, this steady growth trajectory should allow the Reserve Bank of India (RBI) to maintain a prolonged pause on interest rates.

What is the way ahead?

First, the Indian economy is expected to slow down in the second half of the current fiscal year.

Factors like uncertain monsoon, lower export demand, fading favorable comparisons, reduced commodity price differences compared to last year. Potential election-related decrease in government spending could contribute to this slowdown.

Therefore, the overall GDP growth estimate for the fiscal year 2024 remains at 6.0%, below the Monetary Policy Committee’s forecast of 6.5%.

Second, industrial performance ahead could be shaped by two key factors:

1. A potential global economic slowdown or recession due to increasing interest rates, possibly affecting exports negatively.
2. The importance of the monsoon’s performance, impacting inflation and rural demand, and subsequently influencing industrial outlook.

The RBI also acknowledged challenges in its recent monetary policy review, citing risks from weak global demand, financial market volatility, geopolitical tensions, and economic fragmentation.

Prelims Oriented Articles (Factly)

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