9 PM Daily Current Affairs Brief – December 27th, 2023

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Mains Oriented Articles

GS PAPER - 2

On India losing influence in South Asia

Source: The post on India losing influence in South Asia has been created based on the article “Is India ‘losing’ South Asia? That’s not the question” published in “Indian Express” on 27th December 2023.

UPSC Syllabus Topic: GS Paper 2 – International Relations-India and its neighbourhood- relations.

News: The article discusses India’s waning influence in South Asia, attributing it to internal changes, neighboring countries’ evolving perspectives, and external pressures from powers like China and the Middle East. It suggests that India must revise its strategies to effectively respond to these new regional dynamics and maintain its regional standing.

Why is India losing influence in South Asia?

Historical Legacies: The India’s collective nostalgia for the British Raj’s integration of the Subcontinent along with partition and unresolved disputes have led to continuous regional tension.

Perception of Hegemony: Neighbors perceive India’s regional strategies as attempts at hegemony, conflicting with their sovereignty and autonomy. For example, India’s concepts like “Akhand Bharat” or the liberal version of an integrated Subcontinent, seen as covers for regional hegemony.

Domestic Politics of Neighborhood: Neighbors like the Maldives demand the withdrawal of Indian military presence, worried about its impact on its sovereignty. Additionally, the unresolved Kashmir issue with Pakistan remains a focal point of contention.

Changing Regional Dynamics: The rising influence of global powers like China in South Asia and the strategic and economic interests of Middle Eastern countries are diminishing India’s role and complicating its traditional influence.

What is the future of South Asia?

Evolving Geopolitics: The influence of external powers like China and the Middle East will grow, reshaping regional dynamics.

Changing Alliances: Neighboring countries will continue to assert their sovereignty, potentially leading to new alliances and partnerships beyond India’s influence.

Increased Regional Integration: Despite challenges, there is potential for more economic cooperation and regional integration, albeit at a pace influenced by political will and external factors.

Continued Legacy of Partition: Historical disputes, especially related to Partition, will persist in shaping the political and social landscape.

Way forward

India needs to reassess its regional strategy, focusing on inclusivity, cooperation, and resolving disputes like Kashmir to adapt to a changing South Asia. Recognizing and constructively engaging with neighboring countries and external influences is vital for navigating the region’s complexities. By embracing these changes, India can better position itself in the evolving geopolitical landscape of South Asia.

Question for practice:

Examine the reasons behind India’s declining influence in South Asia and the recommended strategies for India to address this situation.

On Youth Unemployment – Are graduates facing unemployment?

Source: The post on youth unemployment has been created based on the article “Are graduates facing unemployment?” published in “The Hindu” on 27th December 2023.

UPSC Syllabus Topic: GS Paper2- Governance- Issues relating to development and management of Social Sector/Services relating to Human Resources,

News: The article discusses the persistent issue of high unemployment rates among young, educated people in India, despite overall falling unemployment rates. It highlights that while fewer people are unemployed now, the problem remains severe for educated youth, reflecting a long-standing issue in the Indian economy.

What is the current unemployment situation?

Overall unemployment rate:  According to periodic labour force survey, the overall unemployment rate in India has decreased from 6.1% in 2017-18 to 3.2% in 2022-23.

Educated youth unemployment: Young graduates, specifically those aged 18-29, face a high unemployment rate of 27% as of 2022-23. This indicates a persistent challenge for this demographic despite overall improvements.

Graduate unemployment trends: For all individuals with graduate degrees, unemployment has seen fluctuations but shows a decreasing trend; it peaked at 17% in 2017-18 and reduced to 13% in 2022-23.

Growing graduate workforce: The share of graduates in the labor force has increased, now making up around 15% by 2022-23.

Why is youth unemployment a concern?

Underutilized Human Capital: Such high unemployment rates among young, educated individuals suggest a significant underutilization of skilled human capital, which is detrimental to economic growth and productivity.

Growing Share of Graduates: The increasing share of graduates in the labor force, from 5% in 1993-94 to around 15% in 2022-23, highlights the expanding pool of educated yet unemployed youth, exacerbating the unemployment issue despite overall improvements.

Structural Issue: The problem has been longstanding since the 1990s, with unemployment among graduates peaking at 17% in 2017-18, showcasing it as a structural issue rather than a temporary fluctuation.

Way forward

Efforts to align education with market demands and enhance relevant skill development are crucial to address the 27% unemployment among young graduates. Creating more job opportunities in sectors that absorb educated youth will also mitigate high unemployment rates. Strengthening the education-employment linkage is key to utilizing the growing educated workforce effectively.

Question for practice:

Discuss how the trend of unemployment rates among educated youth in India reflects the broader economic challenges and what strategies might be employed to address this issue?

GS PAPER - 3

On Make in India – There is no substitute for an industrial policy

Source: The post on Make in India has been created on the article “There is no substitute for an industrial policy” published in “Indian express” on 27th December 2023.

UPSC Syllabus Topic: GS Paper 3 Indian Economy – Changes in industrial policy and their effects on industrial growth.

News: The article discusses the Make in India initiative, contrasting it with past self-sufficiency policies. It explores the campaign’s focus on manufacturing and global competitiveness, concerns about protectionism, and the need for policies that support job creation.

What is Make in India (MII)?

Read here

How is it different from past policy?

Beyond Import Substitution: MII diverges from the past policy of self-sufficiency and import-substituting industrialization. It’s geared towards making India a global manufacturing hub, unlike the 1970s approach that led to inefficiencies and market distortions.

Not a Protectionist Policy: While MII is implementing some protective measures like raising tariffs, it’s not intended to be as pervasive or damaging as past policies. For example, a mobile phone made in India typically has 80-85% imported content, indicating the importance of keeping trade somewhat open.

Job Creation and Economic Growth: The National Manufacturing Policy (NMP, 2011) targeted raising manufacturing’s GDP contribution to 25% and creating 100 million additional jobs. MII aims to further these goals with a more outward-looking, competitive approach.

PLI Schemes for Modernization: The PLI scheme under MII aims to enhance manufacturing efficiency and global competitiveness in specific sectors, contrasting with the broad-brush protectionism of earlier times.

For more information on PLI schemes read here

What are the concerns related to MII?

Rising Protectionism: There’s concern that MII could lead to increased tariff duties, reminiscent of past protectionist policies, potentially hindering the competitive edge and increasing costs.

Legacy of Past Policies: Fears persist that MII might unintentionally bring back elements of the License Raj era, characterized by shortages, black markets, and rampant rent-seeking, despite its fundamentally different approach.

MII cannot be a substitute for an Industrial Policy: Industrial policy over and above MII is needed to address the issue of jobless growth. Mass job creation remains the need of the hour, given the large working population.

What should be done?

Balance Protectionism and Open Markets: While protecting nascent industries, India should avoid excessive tariffs that hinder competitiveness, focusing instead on strategic, sector-specific support.

Enhance Labor-Intensive Manufacturing: Given the emphasis on job creation, policies should focus more on labor-intensive manufacturing to provide employment, especially for women.

Ensure Data-Driven Policymaking: Frequent and reliable data collection is crucial for informed policymaking, avoiding the “shooting darts blindfolded” scenario and enabling responsive and effective strategies.

Question for practice:

Discuss the key differences between the Make in India initiative (MII) and past self-sufficiency policies.

On Private Investment – Crowd-in must not start crowding investors out

Source: This post on Private Investment has been created based on the article “Crowd-in must not start crowding investors out” published in “Live Mint” on 27th December 2023.

UPSC Syllabus Topic: GS Paper 3 Indian Economy – Indian Economy and issues relating to mobilization of resources, growth.

News: The article discusses the optimistic indicators in Indian economy which signal a future increase in private investment in the economy.

In June 2023, India’s credit-to-GDP gap has turned positive for the first time in a decade, according to Bank for International Settlements. This has led to optimism regarding the economy’s trajectory ahead.

What is Credit-to-GDP Gap?

The Credit-to-GDP gap compares the current level of credit (the amount of money lent by financial institutions) to the GDP.
This gap helps identify periods when the pace of credit expansion is unusually high relative to the growth of the economy. A high credit-to-GDP gap may indicate a credit boom, potentially signaling increased risk of financial instability or a future economic downturn. Conversely, a negative or low credit-to-GDP gap might suggest limited credit availability, which could constrain economic growth.

While the credit-to-GDP gap is a contentious figure to assess the state of an economy, it is often used along with other data as an early warning indicator of a banking crisis.

What are some other positive indicators in the economy?

  1. Healthy State of Banks: Banks are broadly in better shape than a decade ago, with bad loans as a chunk of bank assets having fallen to low single-digit rates. Lending norms have been tightened and the risk of debts going bad appears to pose no systemic threat at this point.
  2. Credit Growth: The rate of credit growth has reached mid-teen levels.
  3. Increased Capacity Utilization in Manufacturing: It has crossed 75% (the percentage of potential output levels that is being achieved), which suggests business borrowings are increasing as expansion plans are dusted off for action.
    4. Consumer Spending: The post-pandemic recovery in consumer demand has been uneven, but markets for many products and services have logged record sales and even the laggards have begun to look up.
  4. Increasing capex by the Government: India’s post-covid economic growth has been boosted by heavy capital expenditure by the Centre.
  5. Crowd-in effect of Government Capex: A major thrust behind government’s capex push was to crowd-in private investment, which is crucial for gross capital formation. To this extent, the author has found that government capex has finally begun to crowd-in private investment (increased government spending leading to increased private investment).

What requires to be done?

The increase in government capex has resulted in an enlarged fiscal deficit. With crowding in of private investment, it’s time for a sharp fiscal pullback, sharper than outlined by India’s official glide path to 4.5% of GDP by 2025-26.

The economy has emerged from its COVID crater and grown faster than expected, but a big fiscal deficit for too long risks crowding out private players.

Question for practice:

Various economic indicators signal that private investment is about to pick up in India. Explain.

Labour mobility

Source: This post on Labour mobility has been created based on the article “Labour mobility” published in “Business Standard” on 27th December 2023.

UPSC Syllabus Topic: GS Paper 3 Indian Economy – Issues relating to employment.

News: The article discusses the recent overseas demand of Indian labour due to shortage in developed countries. It highlights its positives, as well as argues that it is not an alternative to job creation domestically.

Read more on this here.

How can India gain from sending labour overseas?

Opportunities: India is a labour-surplus country and has been exporting workers around the world through both formal and informal channels over the years.

Experience: Although there could be concern that labour migrating abroad could create shortages in India, most of the labour demand for now seems temporary in nature, which means people will come back with international experience.

Incomes: Since wages in developed countries are much higher, they are also likely to return with savings, which can be used to build real assets in India. Given the vast pool of surplus labour, it is unlikely to create shortages in India.

Why is sending Indian labour overseas not enough?

It is important to recognise that this will not solve the unemployment or under-employment problem India is facing and should not be seen as an answer to the Indian economy’s inability to create enough well-paid jobs.

According to the latest Periodic Labour Force Survey, over 57% of the workforce was self-employed. This is not an indication of entrepreneurship, but people engaged in some economic activity to sustain themselves because not doing anything is not an option.

Over 18% of the labour force was engaged as helpers in household enterprises, while more than 21% identified themselves as casual workers.

Thus, India needs to create gainful employment for its rising workforce.

What should be done?

Since the government is actively pursuing this route, there are at least two important things that must be kept in mind.

First, the kind of workforce being discussed here is not particularly highly educated and savvy. It is, therefore, important that people are shortlisted transparently with trusted third-party involvement, if necessary.

Second, as the number of Indian workers goes up in various countries over time, India should consider increasing its diplomatic presence to ensure difficulties faced by Indians are swiftly addressed.

Question for practice:

Sending Indian labour overseas has its positives, but it should not replace meaningful job creation at home. Discuss.


Following articles have already been covered in the 7 PM Articles of the day: 

A new economics for inclusive growth
7 PM Article - Inclusive Growth-Explained Pointwise

Prelims Oriented Articles (Factly)

T+0 Settlement Cycle: SEBI Proposes Instant Settlement Cycle

Source– This post is based on the article “T+0, instant settlement cycle: What is the new SEBI proposal and its potential benefits for investors?” published in “The Indian Express” on 26th December 2023.

Why in the News?

The Securities and Exchange Board of India (SEBI) has proposed to introduce the T+0 settlement cycle on an optional basis. This facility will be in addition to the existing T+1 (trade plus one day) settlement cycle.

What is the current settlement cycle followed in the securities market?

1) Currently on Indian exchanges, the settlement cycle for all traded instruments is T+1 day, with T representing the trading day. It was introduced in 2021 in a phased manner and was fully implemented in 2023.

2) T+1 means settlements will have to be cleared within one day after the actual transaction takes place. For example- trades executed on Monday gets settled on Tuesday, the next working day.

For more information on T+1 settlement cycle Click here to read

What has SEBI proposed now?

1) It suggested adding a shorter settlement cycle as an option for the equity cash segment, alongside the existing T+1 cycle.

2) The proposed implementation involves two phases:
a. Phase 1 – An optional T+0 settlement cycle (for trades until 1:30 PM) is envisioned, aiming to conclude the settlement of funds and securities on the same day by 4:30 PM.
b. Phase 2 – There’s an option for immediate trade-by-trade settlement (funds and securities). Trading in this phase will continue until 3:30 PM.

3) SEBI proposes initially introducing T+0 settlement for the top 500 listed equity shares, categorized by market capitalization. This will be implemented in three phases of 200, 200, and 100 shares, progressing from the lowest to the highest market cap.

4) Securities under the trade-for-trade settlement will not be permitted for T+0.

What are the Benefits of the New Settlement Cycle?

1) An immediate settlement mechanism allows for the instant receipt of funds and securities, in contrast to the current T+1 day pay-out.

2) It will strengthen investor protection by enhancing the control of the investor over the securities and funds.

3) It can position Indian equities as a resilient, cost-effective, and time-efficient asset class, surpassing emerging contenders in alternative asset classes.

UPSC Syllabus- Indian Economy

Veer Bal Diwas

Source– This post is based on the article “Veer Bal Diwas: Recalling the ‘supreme sacrifice’ of Guru Gobind Singh’s sons” published in “The Indian Express” on 26th December 2023.

Why in the News?

Veer Bal Diwas is observed on December 26 to honor the martyrdom of Guru Gobind Singh’s youngest sons Sahibzada Baba Zorawar Singh Ji and Sahibzada Baba Fateh Singh Ji. They were only 7 and 9 years old, respectively, at the time of their deaths.

How were the Sons of Guru Gobind Singh Martyred?

1) During the Battle of Chamkaur (1704) fought between the Sikhs and Mughals, Guru Gobind Singh’s youngest sons, Sahibzada Baba Zorawar Singh Ji and Sahibzada Baba Fateh Singh Ji were captured by the Mughals. 

2) Refusing to convert or to bow to Wazir Khan, the two were sentenced to death and were soon martyred by execution.

3) The Guru’s mother Mata Gujari and his two elder sons, Sahibzaada Ajit Singh (18) and Sahibzaada Jujhar Singh (14), were also killed within a week.

4) A few years later Baba Banda Singh Bahadur avenged the execution of the Sahibzade, by attacking, capturing Sirhind and executing Wazir Khan.

UPSC Syllabus- Art & Culture

INS Imphal

Source- This post is based on the article “INS Imphal commissioned today: Its capabilities, and the strategic significance of Visakhapatnam class of destroyers” published in “The Indian Express” on 26th December 2023.

Why in the News?

INS Imphal, the third warship of Project 15B that together form the Visakhapatnam class stealth-guided missile destroyers, has been commissioned into the Indian Navy.

What is Project 15B?

It is a project that aims to construct four guided missile destroyers namely Visakhapatnam, Mormugao, Imphal and Surat.

For more information on Project 15B Click Here to read

What is INS Imphal?

Vishakhapatnam Class Destroyer
Source- Wikipedia
Specifications Details
What is it? Vishakhapatnam class stealth-guided missile destroyer
Built by Mazagon Dock Shipbuilders Limited (MDSL)
Designed by Indian Navy’s Warship Design Bureau
Key Features 1) Size– 163 meters in length, 17.4 meters in width, and have a displacement of 7,400 tonnes.
2) It has a maximum speed of 30 knots and a range of 4000 nautical miles.
3) It is built with 75 per cent indigenous content.
4) Arsenal includes BrahMos surface-to-surface cruise missiles and vertically launched Barak-8 surface-to-air missiles.
5) It is well-equipped for network-centric warfare, leveraging information technology and computer networking tools.

UPSC Syllabus- Miscellaneous (Defence)

New Non-Invasive Formaldehyde Sensor for Room-Temperature Detection of Adulterated Fish

Source– This post is based on the article “New non-invasive formaldehyde sensor can detect adulterated fish at room temperature” published in “PIB” on 27th December 2023.

Why in the News?

Researchers have developed a new cost-effective formalin sensor that can effectively detect the presence of formalin (solution of formaldehyde in water) in adulterated fishes.

What is Formaldehyde?

1) Formaldehyde is a colourless, pungent gas that is used in a variety of industrial processes, including as a preservative in some foods, commonly in fish in developing countries.

2) However its use in food is banned in many countries due to its carcinogenic nature.

What are the Present Techniques for Detecting Formalin Adulteration in Fish?

1) Commercial formalin sensors for fish mainly rely on either electrochemical or colorimetric principles.

2) Electrochemical sensors, while widely employed, tend to be costly. Conversely, colorimetric sensors are more budget-friendly.

3) However, both approaches are invasive, and they face challenges in achieving precise and selective detection, particularly at low levels.

What is this New Non-Invasive Formaldehyde Sensor?

Formaldehyde detection
Source- PIB

1) The formalin sensor has been developed using tin oxide-reduced graphene oxide composite (rGO-SnO2) that can effectively detect the presence of formalin in adulterated fishes

2) Reduced graphene oxide (rGO) is employed for detecting toxic gases, while tin oxide (SnO2) is extensively studied for its ability to detect formaldehyde.

3) Advantages-
a. The technique involves non invasive detection of formalin.
b. The sensor exhibits prolonged stability and a low level detection limit.
c. Its relatively cost effective.
d. Regarded as a breakthrough in the field of food adulteration.

UPSC Syllabus- Science & Technology

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