Current Affairs Compilations for UPSC IAS Prelims 2022

Mains Oriented Articles

GS Paper 1

• Women’s reproductive autonomy as the new catchword

GS Paper 2

• The Global South: origins and significance
• China view on SCO summit: Iran welcome, need to ‘save’ group from India
• Sujan Chinoy writes: New America-India partnership opens up the potential for a multi-polar Asia
• Day-to-day Supreme Court hearings from Aug 2: The issues in challenge to Centre’s 2019 Jammu & Kashmir decisions
• Don’t waste the wastewater

GS Paper 3

Prelims Oriented Articles (Factly)

Mains Oriented Articles

GS Paper 1

Women’s reproductive autonomy as the new catchword

Source: The post is based on the article “Women’s reproductive autonomy as the new catchword” published in “The Hindu” on 11th July 2023.

Syllabus: GS 1- Population and associated issues & Social empowerment

News: world population day (July 11) theme ‘Unleashing the power of gender equality: Uplifting the voices of women and girls to unlock our world’s infinite possibilities’

How is the World population day theme relevant to India?

The theme of this year’s World Population Day, ‘Unleashing the power of gender equality’, resonates powerfully with India.

When we empower women and girls, we harness a wealth of leadership, creativity, and innovation. In India, women-led development across various sectors must prioritize reproductive autonomy.

Why is there a reframe in population perspective?

Global obsessions with population size and fertility rates have overshadowed reproductive autonomy. It’s vital to understand there are no ‘ideal’ numbers. Genuine population stability comes when reproductive and sexual health decisions are discrimination-free, services are affordable and high-quality, and women and couples can choose their family size.

What progress has India made in family planning?

Despite challenges, India has made strides in family planning.

The country provides a comprehensive reproductive health services package, including modern contraceptives, counselling, and emergency contraception.

Through the Family Planning 2030 partnership, India expands contraceptive choices, increasing women’s rights and autonomy.

What are the achievements of India’s health, population and development programmes?

India’s programmes have steadily improved over the years. Life expectancy has increased significantly, with Indians now living a decade longer than in the 1990s.

Maternal mortality rates have dropped from 254 in 2004 to 97 per 100,000 live births. Child marriages have halved since 2000, teen pregnancies have decreased, and access to essential services has improved.

What hurdles to gender equality persist in India?

Despite progress, many Indian women lack physical autonomy. The recent National Family Health Survey (NFHS-5) reveals that only 10% of Indian women can independently make health decisions. Almost half of all pregnancies in India are unplanned.

What are the benefits of advancing gender equality?

Gender equality benefits all of society. In aging societies, gender parity in the workforce improves productivity. In countries with rapid population growth, empowering women through education and family planning can significantly boost human capital and inclusive economic development.

What opportunities does gender equality offer to India’s Economy?

Raising women’s labour force participation by 10 percentage points could contribute to more than 70% of the potential GDP growth opportunity ($770 billion additional GDP by 2025), presenting a significant chance to advance gender equality and grow the economy.

What investments are needed for gender equality?

Achieving gender equality requires investments at all stages of a woman’s life. Initiatives must engage with women, girls, and marginalized groups and empower them through legislative and policy changes.

How does world population day promote gender equality?

World Population Day reaffirms the commitment to placing individual rights, especially women’s rights and wellbeing, at the center of population and development discussions. Gender-just approaches are foundational for a more prosperous India and world.

GS Paper 2

The Global South: origins and significance

Source: The post is based on the article “The Global South: origins and significance” published in “The Hindu” on 11th July 2023.

Syllabus: GS 2- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

News: The refusal of several important African, Asian, and Latin American countries to stand with NATO in the Ukraine crisis has pushed the phrase “Global South” to the fore once more.

What does the term ‘Global South’ Signify and why is it relevant today?

The term “Global South” broadly refers to developing or underdeveloped countries, primarily situated in Africa, Asia, and Latin America. These nations often face higher levels of poverty, income inequality, and lower life expectancies in comparison to the wealthier nations of the “Global North,” which mostly include North America, Europe, and parts of Oceania.

How did ‘Global South’ replace the term ‘Third World’?

The term ‘Global South’ was first used in 1969 by political activist Carl Oglesby. However, it only gained significant traction after the 1991 Soviet Union breakup. Before that, ‘Third World’ was the widely used term for under-industrialized nations, coined by Alfred Sauvy in 1952. After the Soviet Union’s fall, the term ‘Third World’ became less popular, largely due to its negative associations with instability and poverty. The phrase ‘Global South’ emerged as a more neutral replacement, dissociating from the problematic narratives of ‘developed’ and ‘underdeveloped’ nations.

Is the ‘Global South’ geographically defined?

No, the term ‘Global South’ isn’t geographically constrained. The two largest countries in the Global South, China and India, are located entirely in the Northern Hemisphere. It is more of a geopolitical term denoting political, economic, and historical commonalities. Most of these nations experienced colonialism and imperialism, shaping their perspective on global power dynamics, especially in relation to the West.

What’s changing in the ‘Global South’?

A significant shift in wealth has been noted since the 21st century, with wealth moving from the North Atlantic to Asia Pacific. By 2030, three of the four largest economies (China, India, and Indonesia) are expected to be from the Global South. The combined GDP of BRICS nations, which are dominated by the Global South, has already surpassed that of the G7 countries. Additionally, cities like Beijing now boast more billionaires than New York.

Is the ‘Global South’ gaining more political influence?

Countries from the Global South are increasingly flexing their political muscles. For instance, China is playing an important role in Middle Eastern diplomacy, while Brazil is actively proposing peace plans for the war in Ukraine. This rise in political and economic power is reshaping global dynamics, with experts predicting the arrival of an “Asian Century” and a “post-Western world.”

China view on SCO summit: Iran welcome, need to ‘save’ group from India

Source– The post is based on the article “China view on SCO summit: Iran welcome, need to ‘save’ group from India” published in “The Indian Express” on 11th July 2023.

Syllabus: GS2- BIlateral groupings and agreements

Relevance– India and US bilateral relationship

News- The membership of the Shanghai Cooperation Organisation (SCO) is growing. Iran is the newest entrant at the just-concluded 23rd leaders’ summit in New Delhi.

India’s association with the SCO began in 2005 as an Observer country, and it became a full Member State at the Astana Summit in 2017.

What are the viewpoints of the Chinese strategic community about India’s membership of SCO?

China’s strategic affairs community was opposed to the SCO membership of India. India’s role and presence within the grouping is compared to Turkey in North Atlantic Treaty Organization (NATO).

Foreign policy analysts in China have welcomed Iran’s entry. It will prevent India from completely destroying the SCO.

India is spreading disharmony within the SCO. It is openly opposing the Belt and Road Initiative and unwilling to support the initiative to set up an SCO Development Bank.

India has actually used its SCO membership as a “platform” to challenge and embarrass China.

Some observers believe that India was accepted as a full member on Moscow’s insistence. The purpose was to counterbalance China for advocating Pakistan’s inclusion into the organisation.

China agreed to the Russian viewpoint that unity between Moscow, Beijing, and New Delhi is necessary for challenging US-led Western dominance in Asia, or particularly in Central Asia and Eurasia.

Moscow was wooing India for purchasing Russian weapons, and put pressure on Beijing to keep it sandwiched between Moscow and New Delhi.

China was surprised when New Delhi joined the Quadrilateral Security Dialogue gathering in Manila when Doklam was continuing.

Despite India joining the SCO and Wuhan and Chennai friendship summits in 2018 and 2019, the Doklam standoff was precursor to the Galwan border clash.

Many scholars have called for expelling India from the SCO. They point to the success of Modi’s official state visit to the US.

Some voices in China are demanding for the SCO “exit mechanism” and impose appropriate “constraints” on member states.

As per scholars, New Delhi has made deliberate efforts by suddenly transforming the first Indian presidency summit of the SCO into a mere two-hour online affair.

Sujan Chinoy writes: New America-India partnership opens up the potential for a multi-polar Asia

Source– The post is based on the article “Sujan Chinoy writes: New America-India partnership opens up the potential for a multi-polar Asia” published in “The Indian Express” on 11th July 2023.

Syllabus: GS2- Regional and global groupings

Relevance: SCO

News- The membership of the Shanghai Cooperation Organisation (SCO) is growing. Iran is the newest entrant at the just-concluded 23rd leaders’ summit in New Delhi.

What are the reasons behind the increasing closeness between India and the US?

India’s realization of its potential heavily relies on a closer partnership, particularly in high-tech sectors, with the United States. The US cannot effectively establish a multi-polar Asia without a strong and resilient relationship with India.

Prime Minister Modi’s visit is expected to influence the evolving geo-economic and geo-strategic dynamics of the Indo-Pacific region.

Over fifty years ago, communist China benefited from advanced US technologies. However, this dynamic shifted when China began challenging US dominance.

Importantly, the two countries lacked shared values. In contrast, the close partnership between democratic India and democratic US is more viable and sustainable in the long term.

Why have some voices expressed concern over enthusiasm in the US for closer partnership with India?

Despite significant efforts from the United States, India cannot become a true ally or a significant strategic partner.

Notion of shared values is empty, lacking any substantial alignment in this regard. India’s perceived neutrality in the Ukraine crisis and allegations of democratic regression have become convenient grounds for criticism.

Why do these concerns have no solid basis?

[Text Wrapping Break]Shared values are not the sole determining factor in shaping US foreign policy. The US has established treaty alliances and security partnerships with various authoritarian regimes across the globe.

In Latin America, the US has maintained strategic ties with a range of fascist and military regimes, including leaders like Fulgencio Batista in Cuba, General Pinochet in Chile.

Similar alliances can be found with several Gulf monarchies. US policy towards these countries has been primarily driven by US interests, rather than shared values.

Neither its political system of China nor the Tiananmen Square incident in 1989 hindered Western democracies from engaging with China. In contrast, India is the world’s most populous democracy and a credible representative of the Global South.

President Biden and the US government have consistently highlighted India’s democratic credentials.

It was evident from the joint statement released during Prime Minister Modi’s visit. It underscores values such as freedom, democracy, human rights, inclusion, pluralism, and equal opportunities as areas of common ground.

What is the potential of a bilateral relationship between India and the US?

[Text Wrapping Break]The convergence between India and the US today is rooted in the evolving geopolitical landscape and the emerging threats posed by authoritarian states.

Both countries believe that coercion and bullying have no place in international relations. Working towards stability and multi-polarity in Asia and the broader Indo-Pacific region is a shared objective.

India and the US do not need to be formal treaty allies for upholding a rules-based international order. Even with some differences on current global order and reform of multilateral institutions, a deeper partnership is possible.

Day-to-day Supreme Court hearings from Aug 2: The issues in challenge to Centre’s 2019 Jammu & Kashmir decisions

Source– The post is based on the article “Day-to-day Supreme Court hearings from Aug 2: The issues in challenge to Centre’s 2019 Jammu & Kashmir decisions” published in the “The Indian Express” on 11th July 2023.

Syllabus: GS2- Polity

Relevance- Issues related to special status of J&K

News- The Supreme Court on Tuesday has said it will begin hearing petitions challenging the changes to Article 370.

What was the modus operandi used by the central government to change the constitutional status of J&K?

The Centre issued an order amending The Constitution (Application to Jammu and Kashmir) Order, 1954, and superseding it with The Constitution (Application to Jammu and Kashmir) Order, 2019.

The new order made “all the provisions of the Constitution” applicable to J&K state. The government also amended Article 367 to add a new Clause (4). It makes the Constitution of India directly applicable to J&K.

Article 370 provided for application of only Article 1 and Article 370 to Jammu & Kashmir. Other provisions of the Constitution did not automatically extend to J&K.

But clause (1)(d) of Article 370 empowered the President of India to extend them through an executive order with the concurrence of the government of J&K.

The President issued a declaration under Article 370(3). It makes all its clauses inoperative except. The provision that all articles of the Constitution shall apply to J&K is still operative.

What are the constitutional issues raised by this move of the central government?

Article 370(3) granted the President the authority to declare Article 370 null and void only if recommended by the Constituent Assembly of Jammu and Kashmir.

However, the Constituent Assembly no longer existed. So, this power of the President became defunct.

Article 370 clarified that the state government referred to the Maharaja of J&K, who acted upon the advice of the council of ministers. There was no state government in J&K. So, the President had no means to obtain the consent of the state government.

There was no constitutional or legal mechanism available to the Central government to revoke or amend Article 370.

The Central government utilised the President’s powers under Article 370(1)(d) to modify Article 367, which provides guidelines for interpreting the Constitution.

A new clause was introduced into Article 367, replacing the “Constituent Assembly of the State” mentioned in Article 370(3) with the “Legislative Assembly of the State.”

During the President’s direct rule in J&K, the President assumed all the functions of the J&K government.

President’s Rule serves as an interim arrangement until an elected government is established, and thus, the administration under President’s Rule should not make decisions that fundamentally alter the constitutional structure of the state.

On what basis, the abolition of Article has been challenged before SC?

The J&K Legislative Assembly did not possess the authority to propose any amendment to the Constitution of India as per J&K constitution.

The Jammu and Kashmir (Reorganisation) Act, 2019 divided J&K into two Union Territories. It is unprecedented in India’s constitutional history.

It violates Article 3 of the Indian Constitution. The President must refer such type of Bill to the legislature of that state.

The Parliament cannot substitute the state legislature. Under the President’s Rule, only the essential powers required to handle the day-to-day affairs of the state can be exercised by Parliament.

The constitutional changes are “colourable legislation“. This is an attempt to disguise the true purpose and are therefore legally invalid.

Don’t waste the wastewater

Source: The post is based on the article “Don’t waste the wastewater” published in The Hindu on 11^th July 2023.

Syllabus: GS 2 – Health

Relevance: significance of wastewater surveillance in improving public health

News: A recently published study in The Lancet Global Health has reiterated the effectiveness of using wastewater for public health surveillance.

What is wastewater surveillance? 

Wastewater surveillance is the process of monitoring wastewater for contaminants. It was originally proposed to monitor the spread of poliovirus and played a role in confirming India’s victory over poliovirus.

Recently, it was identified as an approach for tracking the spread of SARS-CoV-2.

What are the advantages of wastewater surveillance for public health?

Wastewater surveillance is effective in detecting known or emerging health threats. It is a cost-effective approach that does not rely on invasive samples from individuals with clinical symptoms.

However, despite the improvements made in public health surveillance system in India, it still faces many implementation challenges.

According to a report by Niti Aayog, the public health surveillance system suffers from uneven coverage and fragmented disease-specific efforts.

How can wastewater surveillance be effectively implemented in India?

Wastewater surveillance in India could involve analysis of samples from varied sources such as wastewater ponds in rural areas and centralised sewage systems in urban localities.

These samples would then undergo testing in laboratories to identify disease-causing agents such as genetic fragments of bacteria or viruses.

The data could be integrated with other health data sources to provide real-time insights into community-level disease patterns, sometimes even earlier than clinical data.

Moreover, the integration of wastewater surveillance into existing surveillance mechanisms has the potential to enhance India’s epidemiological capabilities.

How can the integration of wastewater surveillance into existing surveillance mechanisms enhance India’s epidemiological capabilities?

Strengthening public health laboratory could strengthen the capacity to detect diseases at an early stage, particularly in areas with limited access to healthcare facilities and diagnostic testing.

Additionally, the Ayushman Bharat Digital Mission, offers an opportunity for the integration of wastewater surveillance. This integration can enable real-time tracking of disease spread and enhance targeted public health responses.

Further, the success of wastewater surveillance relies on effective data sharing, domestically as well as internationally.

Domestically, granting health departments at all levels of government access to wastewater surveillance data can enhance disease monitoring and response capabilities. 

Whereas, internationally, sharing this data with global health agencies can facilitate collaborative efforts in disease tracking and mitigation. 

Must Read: NITI Aayog releases ‘Vision 2035’: Public Health Surveillance in India

What efforts have been taken by India in public health and wastewater surveillance?

India has already championed public health surveillance and mobilised resources accordingly. The integration of wastewater surveillance also aligns well with Niti Aayog’s current vision. 

Additionally, social media surveillance and occupational health surveillance, are also being recognized as valuable tools in public health surveillance.

What can be the way ahead?

India’s leadership in international platforms like the G20 presents an opportunity to highlight the importance of innovative approaches to disease surveillance, and advocate for enhanced public health surveillance that integrates wastewater sampling.

By actively promoting this agenda, India can call for international commitments and support as well as establish itself as a leader and coordinator in this field.

GS Paper 3

AI’s disruptive economic impact, an India check

Source: The post is based on the article “AI’s disruptive economic impact, an India check” published in “The Hindu” on 11th July 2023.

Syllabus: GS 3 – science and technology (awareness in the fields of computer)

News:

How has Artificial Intelligence (AI) influenced daily life and business operations?

AI has emerged as an indispensable tool in our daily lives and businesses, contributing to authoring poems, devising pickup lines, and solving complex problems. Large language models and generative AI have spurred global interest in AI advancement. The application of AI extends across various fields, with an increased adoption of AI systems such as ChatGPT.

Are there positive impacts from AI adoption?

Several studies indicate a positive correlation between AI adoption and increased productivity.

A study by MIT demonstrated how AI tools enhanced worker productivity by 14% and improved consumer satisfaction. It is suggested that AI may not replace employees, but workers using AI may substitute those not skilled enough.

A LinkedIn survey found that 70% of employees in top US companies perceived AI as beneficial to their productivity. Further investments and business restructuring are required to fully utilize AI’s potential.

How will AI impact economic growth?

A study by PricewaterhouseCoopers predicts a global GDP increase of 14% or $15.7 trillion by 2030 due to AI advancements.

The Kent A. Clark Center for Global Markets survey showed 44% of US experts and 34% of European experts expect a substantial increase in GDP per capita due to AI.

However, some experts like Professor Nicholas Bloom suggest that AI might not significantly impact per capita GDP.

Could AI Negatively Impact Employment?

Despite its benefits, AI also poses risks, such as labour replacement. Research by Daron Acemoglu and Pascual Restrepo indicates that robot adoption negatively affects employment and wages, particularly for blue-collar workers and those with lower education levels. Automation is associated with wage inequality, particularly in industries undergoing rapid automation.

What are the Prospects for India in the AI era?

India, given its vast population, needs to consider the possible negative impact of AI on employment.

Regulation of AI could deter investments and opportunities, but India can potentially leverage its demographic dividend by focusing on AI education and training, especially as online education gains traction after the COVID-19 pandemic.

What is the Overall Impact of AI?

While the impact of AI on productivity and economic growth is largely positive, its effect on the labour market and societal implications can be challenging.

Many experts agree that AI may bring about significant societal challenges in the labour market, politics, data privacy, crime, and warfare.

There is a need for robust cyber regulations and potentially tax capital to balance the returns from capital and labor and mitigate the displacement effects. Adapting to the ever-evolving AI advancements is crucial to progress.

The strange particle that holds the key to ‘quantum supercomputer

Source: The post is based on the article “The strange particle that holds the key to quantum supercomputer” published in “The Hindu” on 11th July 2023.

Syllabus: GS 3 – science and technology (awareness in the fields of computer)

News: Researchers from Microsoft reported engineering a topological superconductor made of an aluminum superconductor and an indium arsenide semiconductor.

What does the term ‘Majorana’ mean?

‘Majorana’ refers to fermions that are their own antiparticles, as proposed by the Italian physicist Ettore Majorana in 1937. These particles satisfy certain conditions under the Dirac equation, originally developed by the British physicist Paul Dirac in 1928 to incorporate quantum mechanics with special relativity. The equation predicts that each particle has a corresponding antiparticle, and Majorana discovered that certain particles could serve as their own antiparticles.

What is Majorana Zero Mode?

Majorana zero modes are a unique kind of particle, a bound state of fermions that are their own antiparticles. These particles have distinct quantum numbers, including quantum spin with half-integer values, such as 1/2, 3/2, 5/2, and so on. The rules applicable to single fermions also apply to these bound pairs. If these bound states encounter each other, they annihilate, justifying their title as Majorana fermions.

What are the benefits of  Majorana Zero Mode for Quantum Computing?

Majorana zero modes offer significant benefits to quantum computing. They act as stable qubits, with the unique ability to exist in two states simultaneously, providing a basis for quantum superposition. By encoding information into these modes, quantum computers can be shielded from decoherence, a typical challenge with these machines. Additionally, these zero modes employ non-Abelian statistics, offering an extra degree of freedom and potentially different outcomes, depending on the order of operations. Consequently, Majorana zero modes could unlock superior quantum computing capabilities, from increased resilience to expanded computational possibilities.

What does ‘Topological’ mean?

“Topological” refers to properties of a system that remain unchanged even when the system is continuously deformed, such as stretching or twisting, without tearing or gluing. Topological degeneracy is a state in quantum mechanics where multiple configurations can exist at the system’s lowest energy. In context of quantum computing, Majorana zero modes can store information across different topological properties and, due to this topological nature, they are more robust to disturbances, making them ideal candidates for qubits in quantum computing.

What are the challenges in realizing Majorana Zero Modes?

First, isolating Majorana zero modes experimentally is extremely challenging due to the precise conditions required. They are expected to exist only in certain types of superconductors, under very specific conditions.

Second, even if isolated, verifying their existence is difficult. Majorana zero modes leave a minimal experimental footprint, making their detection and confirmation problematic.

Third, there’s a challenge in maintaining the stability of Majorana zero modes. The stability of these states is extremely sensitive to environmental influences, which could easily disrupt them.

Fourth, the manipulation of Majorana zero modes is not straightforward. It requires highly advanced and controlled experimental techniques, which are currently not fully developed.

Lastly, scaling up from individual Majorana zero modes to a fully functional quantum computer architecture is a monumental task, involving numerous technical and conceptual obstacles.

What new discovery has Microsoft made?

Researchers at Microsoft have reported the engineering of a topological superconductor from an aluminium superconductor and an indium arsenide semiconductor. They claim that their device passed the “topological gap protocol,” which suggests a high probability of hosting Majorana zero modes. Microsoft’s VP of advanced quantum development stated that the company believes that a quantum supercomputer using these qubits could be built within 10 years and could perform a reliable one million quantum operations per second. Despite this, many experts remain cautious and believe that independent confirmation of the results is required, and that topological quantum computing could still be at least a century away.

Second moonshot – On Chandrayaan-3 mission

Source: The post is based on an article “Second moonshot” published in The Hindu on 11^th July 2023.

Syllabus: GS 3 – Science & Technology

Relevance: Significance of Chandrayaan-3 mission

News: The Indian Space Research Organisation (ISRO) is set to launch the Chandrayaan-3 mission to the moon on July 14.

About Chandrayaan-3 Mission

Read Here: Chandrayaan-3 successfully completes crucial test and Chandrayaan-3 integrated with launch vehicle LVM3

The mission has six scientific payloads to study the various features of the moon.

ISRO has strengthened the lander’s legs, lowered its minimum thrust, enhanced the availability of power, and upgraded the landing sequence to increase the chances of a successful mission.

What is the significance of Chandrayaan-3 Mission?

First, a successful mission will demonstrate the country’s capabilities in relevant technologies.

Second, a successful mission would also position India as the second country to achieve a soft moon landing.

Third, the mission holds significant importance, as establishing permanent moon bases has become a geopolitical goal worldwide.

Fourth, the success of Chandrayaan-3 will also make it the first surface mission closest to the lunar south pole, a region of the moon that has been found to be geologically unique.

Fifth, a seventh instrument, on the propulsion module, will profile the signs of life on earth to help scientists look for similar signs on planets beyond the solar system.

Sixth, on the eve of the Artemis Accord, where the US is leading lunar research missions while China and Russia collaborating on an ‘International Lunar Research Station,’ Chandrayaan-3 is critical for India’s recognition globally.

Overall, Chandrayaan-3 provides India with an opportunity to lead the global response to the moon’s increasing scientific and political significance.

Improving Pensions

Source– The post is based on the article “Improving Pensions” published in the “Business Standard” on 11th July 2023.

Syllabus: GS3-Economy

Relevance: Issues related to financial system

News-. The article explains the issues related to pension funds in India.

What are the issues related to pension funds in India?

Return on investment– The majority of the funds are composed of investment returns. But, long-term real returns on debt instruments are relatively low.

There are two primary reasons for this. Firstly, banks in India are required to maintain a statutory liquidity ratio. As a result, the demand for these bonds is high. It drives up their prices and consequently lowering yields.

Secondly, in order to stimulate economic growth, the Reserve Bank of India (RBI) maintains a low real repo rate. This has an impact on overall returns on investment.

Risk on investment– Investment returns also come with certain risks. Inflation risk is the first one. It can diminish the real value of the corpus held by pension funds. The second risk is interest rate risk. It can cause significant fluctuations in bond and equity prices, affecting pension funds.

Another risk is the potential change in market sentiment. Both equity and bond prices can fluctuate for prolonged periods. This poses risks to pension funds.

Dependence on authorities– The risks associated with investments depend on the actions of public authorities. Asset markets do not operate independently.

They function within a macroeconomic policy and regulatory framework. If these policies and regulations are not appropriate, investment risks can be very high.

Suitable changes in policy and regulations can help mitigate risks and improve the gains for pension funds.

Furthermore, the repo rate is a key policy tool used by the RBI to maintain macroeconomic stability. This rate undergoes significant changes over an economic cycle.

It affects interest rates in the broader economy. However, there is often an overreaction in asset markets, posing risks to pension funds.

Regulatory framework– There are also concerns related to the regulatory framework governing investments. One key issue is the absence of regulations addressing the pervasive role of market sentiment.

Prelims Oriented Articles (Factly)

At G20 meet, a Guinness effort to shine light on Karnataka’s Lambani craft

Source: The post is based on the article “At G20 meet, a Guinness effort to shine light on Karnataka’s Lambani craft” published in Indian Express on 11th July 2023.

What is the News?

At the third G20 culture working group (CWG) meeting in Hampi, a Guinness world record was created for the ‘largest display of Lambani items’.

Over 450 Lambani women artisans and cultural practitioners associated with Sandur Kushala Kala Kendra Kendra (SKKK) came together to display Lambani items.

What is Lambani embroidery?

Lambani embroidery is a vibrant and intricate form of textile embellishment characterized by colorful threads, mirror work, and a rich array of stitch patterns.  

Practised in: It is practised in several villages of Karnataka such as Sandur, Keri Tanda, Mariyammanahalli, Kadirampur, Sitaram Tanda, Bijapur, and Kamalapur. 

Community involved: This embroidery is predominantly done by the skilled women of the Lambani community.It serves them as a vital source of livelihood and sustenance.

Features: Lambani embroidery  involves stitching together small pieces of discarded fabric to create a beautiful fabric. 

Significance: The embroidery traditions of the Lambanis are shared in terms of technique and aesthetics with textile traditions across Eastern Europe, West, and Central Asia.This signifies the movement of the nomadic communities across such regions historically, forming a shared artistic culture.

What is Sandur Kushala Kala Kendra Kendra (SKKK)?

Sandur Kushal Kala Kendra(SKKK) is a registered society established in 1988.

Aim: To revive traditional crafts and enhance the livelihoods of craftswomen by nurturing their skills, promoting their products, and thus ensuring a steady income.

Contribution to Lambani craft: SKKK has gained national and international recognition for the Lambani craft earning the prestigious UNESCO Seal of Excellence for Handicrafts in South Asia in 2004 and 2012.

– It has also obtained the GI (Geographical Indication) tag for the craft ‘Sandur Lambani hand embroidery’ in the year 2008.  

Import of urea may ease by 2025, alternative forms will replace it, says Minister

Source: The post is based on the article “Import of urea may ease by 2025, alternative forms will replace it, says Minister” published in The Hindu on 11th July 2023

What is the News?

The Union Cabinet has approved a Rs 3.70 lakh crore special package of innovative schemes for farmers.

What are the major components of the special package announced for farmers?

There are four components in this package:

First component: Ensuring a subsidy for urea for the next three years. A sum of Rs 3,68,676.7 crore has been committed for urea subsidy from 2022-23 to 2024-25. 

Second component: Prime Minister’s Programme for Restoration, Awareness Generation, Nourishment, and Amelioration of Mother Earth (PM-PRANAM) scheme.

Third component: Market Development Assistance(MDA) of ₹1,500 per metric tonne to support marketing of organic fertilizers, produced as a by-product from bio-gas plants/compressed bio-gas (CBG) plants set up under GOBARdhan scheme.

Fourth component: Introduce sulphur coated urea as Urea Gold. This will address sulphur deficiency for the soil in the country and improve our crop productivity.

What was the need for such a special package?

The package had to be brought in as the use of fertilizers has become unbalanced in the country. 

The nitrogen, phosphorus and potassium ratio should have been 4:2:1.Instead, it is 8:3:1.Due to this, the balance of the soil has been damaged and production has become saturated.

According to a study, overuse of fertilizers has resulted in a 16% decrease in production in Punjab despite a 10% increase in the use of fertilizers in the State during the same period. This is leading to the deterioration of soil health over a period of time

Hence, it is clear that balanced use of fertilizers is needed for steady production, food security, and for helping farmers too. That’s why, this package has been announced.

What are the steps being taken to reduce the use of chemical fertilizers?

India is not planning to stop the use of chemical fertilizers completely but will be adopting alternate fertilizers. 

For example, instead of urea, we have launched neem-coated urea, sulphur-coated urea, and nano urea, which will reduce the consumption of chemical fertilizers without impacting production. 

The country is moving towards natural farming and organic farming step by step.

These steps will help India reduce its import dependency on urea by 2025.

Dilution of Article 370 led to unprecedented era of peace in J&K, Centre informs SC

Source: The post is based on the article “Dilution of Article 370 led to unprecedented era of peace in J&K, Centre informs SC” published in The Hindu on 11th July 2023

What is the News?

The Centre has filed an affidavit in the Supreme Court defending the abrogation of Article 370 of the Constitution.

What is the case before the Supreme Court?

A five judge Constitution bench has been constituted to hear a number of petitions challenging a Presidential Order from 2019 which abrogated Article 370.

Under Article 370, special rights and privileges have been granted to the people of Jammu and Kashmir since 1954 in accordance with the Instrument of Accession.

Subsequently, the Jammu and Kashmir (Reorganization) Act of 2019 came into effect bifurcating the state into the Union Territories of Jammu and Kashmir and Ladakh.

What is the Central Government stand on the abrogation of Article 370?

Centre has defended the abrogation of Article 370 of the Constitution. It has said that this decision has brought “unprecedented stability and progress” to the region. For instance,

– Stone-pelting incidents, which reached as high as 1,767 in 2018, have now ceased completely in 2023.

– The anti-terror actions have led to the dismantling of the terrorist ecosystem, resulting in a significant drop in terrorist recruitment from 199 in 2018 to 12 in 2023.

– There has been a significant increase in tourist visits to the valley after the decision. As of December 2022, 1.88 crore tourists have visited.

– Reservation had been extended to persons residing in areas adjoining the Actual Line of Control, it noted. Seats had been reserved for Scheduled Tribes persons and the Pahari speaking people.

– Duly-elected three-tier panchayati raj system could be established for the first time in the history of Jammu and Kashmir after 2019. 

– Crucial Central laws, including right to free education for children and land acquisition compensation statutes, were now applicable in Jammu and Kashmir.

– The annual budget of Jammu and Kashmir had grown from ₹80,423 crore in 2019-20 to ₹1,18,500 crore in 2023-24.

Rafales, Scorpenes and jet engine development on the agenda of PM’s France trip

Source: The post is based on the article “Rafales, Scorpenes and jet engine development on the agenda of PM’s France trip’ published in The Hindu on 11th July 2023

What is the News?

The Indian Prime Minister will be visiting France as Chief Guest at the Bastille Day parade.

What will be the key defence deals that are expected to be signed between India and France?

Rafale M Aircraft: India is planning to buy 26 Rafale M Aircrafts from France.They are intended for deployment on the Indian Navy’s aircraft carriers INS Vikrant and INS Vikramaditya, which currently employ the MiG-29. 

Three Scorpène-class submarines: Scorpene are a class of diesel-electric attack submarines jointly developed by the French Naval Group and the Spanish company Navantia under Project 75.They are being built at Mazagon Dockyards Limited in Mumbai.

Five of Scorpene submarines have been commissioned and the sixth one is expected to be commissioned early next year.

However, the ageing submarine fleet and delay in the procurement of new submarines under P-75I meant the Navy has to procure three follow-on submarines to arrest the depleting fleet.

Hence, that’s why the Indian Navy is now planning to buy Three additional Scorpene class submarines under the repeat clause where they would be built in the Mazagon Dockyards Limited in Mumbai.

Aircraft engine: India is planning to sign a pact with France for the co-development of fighter jets to power India’s futuristic Advanced Medium Combat Aircraft (AMCA) fighter jet.

The AMCA will be the cornerstone of the Indian Air Force’s manned tactical fleet within the next decade. 

Solomon Islands and China sign deals on police, economy, tech

Source: The post is based on the article “Solomon Islands and China sign deals on police, economy, tech” published in The Hindu on 11th July 2023

What is the News?

China and Solomon Islands have jointly announced the official establishment of a comprehensive strategic partnership. As part of this, the two countries signed a deal on police cooperation.

Where is Solomon Island?

The Solomons are an archipelago of hundreds of small islands in the southern part of the Pacific Ocean. It is located approximately 2,000 km from Australia.

There are six big islands – the largest, Guadalcanal, is home to the capital Honiara. 

About China-Solomon Island relations:

Solomon Islands and China (PRC) established official diplomatic relations in 2019. Prior to this, Solomon Islands had diplomatic relations with Taiwan.

In 2022, China’s government signed a security deal with the Solomon Islands.

Why is the US concerned with the China-Solomon Island relations?

The Solomon Islands are strategically located in the Pacific, and the United States and its regional allies, such as Australia and New Zealand, are concerned that the China-Solomon Islands security pact allows Chinese naval vessels to replenish there. 

That could open the door to a Chinese naval base, which would significantly extend China’s military reach in the South Pacific. 

What are the steps taken by the US to address Chinese presence in the Pacific Island countries?

The US has responded by announcing plans to reopen an American Embassy in the Solomon Islands.

The US convened a summit of Pacific Island leaders in September,2022 to unveil a strategy that included cooperation in climate change, maritime security and preventing overfishing.

US has promised $810 million in new aid for Pacific Island nations over the next decade, including $130 million to address the effects of climate change

Warming Bay: An ongoing heatwave in India’s eastern sea is causing extreme rain in its northwest, say experts

Source: The post is based on the article “Warming Bay: An ongoing heatwave in India’s eastern sea is causing extreme rain in its northwest, say experts” published in Down To Earth on 8th July 2023

What is the News?

The northern Bay of Bengal has been experiencing an intense marine heatwave. This has led to India’s usually arid northwest receiving extreme rainfall.

What is causing heavy rainfall in Northwest India?

During the monsoon, the northern Bay of Bengal tends to be warm.

This region needs to be warm as it plays an important role in the southwest monsoon’s trajectory as it enables the monsoon winds blowing from the southwest to cross over into the Bay of Bengal and bring moisture into the Indian subcontinent.

However, the northern Bay of Bengal currently has been experiencing an intense marine heatwave. Due to this, it is warmer than usual and may be contributing to the extreme rainfall in northwest India.

What are Marine Heatwaves?

Marine heatwaves(MHW) are periods of extremely high temperatures in the ocean (above the 90th percentile). 

Such heat waves are caused by an increase in the heat content of oceans, especially in the upper layers. Worldwide, they are one of the major results of human-induced global warming.

During an MHW, the average temperatures of the ocean surface (up to a depth of 300 feet) goes 5-7 degrees Celsius above normal. 

Impact: These events cause habitat destruction due to coral bleaching, seagrass destruction, and loss of kelp forests, affecting the fisheries sector adversely. 

– An underwater survey showed that 85% of the corals in the Gulf of Mannar near the Tamil Nadu coast got bleached after the marine heatwave in May 2020.

RBI presses ahead with VRRR to suck out excess liquidity from banking system

Source: The post is based on the article “RBI presses ahead with VRRR to suck out excess liquidity from banking system” published in The Hindu Businessline on 7th July 2023

What is the News?

The Reserve Bank of India (RBI) has said that it will conduct a three-day variable rate reverse repo (VRRR) auction for Rs 2 lakh crore.

What is Variable rate reverse repo(VRRR)?

The Reserve Bank of India(RBI) uses various ways to increase or decrease liquidity in the banking system. 

Repo rate is the rate at which the central bank gives loans to commercial banks against government securities. 

Reverse repo rate is the interest that RBI pays to banks for the funds.Variable rate reverse repo(VRRR) is a sub-type of reverse repo.

VRRR is usually undertaken to reduce surplus liquidity by withdrawing existing cash in the system.

RBI has been conducting VRRR everyday since June 30 to ensure that the overnight call money rate remains close to the target rate of 6.50 per cent.

El Nino, India, and the risk of food shortage

Source: The post is based on the article “El Nino, India, and the risk of food shortage published in Livemint on 11th July 2023

What is the News?

The UN World Meteorological Organisation (WMO) has confirmed it: El Niño conditions have arrived and are expected to become moderate to strong as they develop over the coming year.

What will be the impact of El Nino on India?

Source: Livemint

Impact on Trade Pattern of India: El Nino generally leads to drier conditions in Southeast Asia and Australia, which puts at risk critical crops from countries in these regions, some of which are key trading partners of India. 

Australia, the second-largest wheat exporter, is officially expected to see a decline in wheat production. Similarly, palm oil production is likely to suffer in Indonesia and Malaysia.

This will have an impact on India’s trade patterns. For instance, India imports 56% of its edible oil needs, with huge reliance on imports from Indonesia and Malaysia, where El Nino could hurt palm oil production. 

India could then opt for alternative sources like soya bean oil from Brazil as it is expected to receive good rainfall and get a bumper soya bean crop.

Similarly, Paddy, a major crop produced by Indonesia and Vietnam could also witness a decline in production. India being the second largest rice producer in the world can help these regions meet their deficit if it first procures enough to meet domestic demand.

Impact on economic growth of India: El Nino has been known to harm economic growth, costing tens of billions of dollars in direct impacts. 

The World Meteorological Organization has said there is a 90% chance that El Nino will continue during the second half of 2023.It also said countries should prepare and limit the impact on their economies. 

The Reserve Bank of India has expressed concern over the rising international prices of key food items like rice and sugar and said the adverse climate events have the potential to quickly change the direction of inflation trajectory. It has projected a gross domestic product (GDP) growth of 6.5% for FY24. 

However, the International Monetary Fund has lowered its estimate of India’s GDP growth in 2023-24 to 5.9%. 

The unmaking of Vedanta-Foxconn’s chip dream: What went wrong?

Source: The post is based on the article “The unmaking of Vedanta-Foxconn’s chip dream: What went wrong?” published in Indian Express on 11th July 2023

What is the News?

Taiwanese electronics manufacturer Foxconn has announced that it has withdrawn from a joint venture with Vedanta Ltd which was set up to produce semiconductors in India.

Why is chipmaking crucial for India?

Prime Minister has made chip manufacturing a top priority for India’s economic strategy. This is because:

Firstly, Chips are an integral part of pretty much all electronic products so making them in India will massively improve the country’s net value addition to the overall electronics manufacturing process.

Secondly, building semiconductors in India will eventually help India reduce its imports. The demand for semiconductors in India will reportedly reach around USD 100 billion by 2025, up from the current demand of USD 24 billion.

Thirdly, semiconductor manufacturing also has strategic advantages, as countries don’t want to depend on their imports for essential infrastructure like defence and power.

Fourthly, China is currently one of the major destinations for chips manufacturing. As more companies are trying  to diversify their bases from China, India has an opportunity to emerge as a reliable destination.

– Note: The United States of America has also passed the CHIPS Act in 2022 providing subsidies of around $280 billion for manufacturing chips in the country. It has also imposed additional restrictions and sanctions on the Chinese semiconductor industry.