Current Affairs Compilations for UPSC IAS Prelims 2022

Mains Oriented Articles

GS Paper 2

GS Paper 3

• Seeing India’s energy transition through its States
• Bonn meeting: Taking stock of climate action
• An Expenditure Council could help promote fiscal prudence
• The Great India Stack Story

Prelims Oriented Articles (Factly)

Mains Oriented Articles

GS Paper 2

A global order as technology’s much needed pole star

Source– The post is based on the article “A global order as technology’s much needed pole star” published in “The Hindu” on 7th June 2023.

Syllabus: GS2- Polity

Relevance– Issues related to impact of technology on global polity

News- Since the 2000s, the rapid scale and pace of development of technology have radically transformed our societies and daily lives.

How is the notion of nation-state changing?

As per political theorists, a nation-state is a territorially-bounded sovereign polity.

There are now several threats occurring across the borders of nation-states, like cyber-attacks. It has a ripple effect on the physical boundaries. It can challenge their socio-economic and political existence.

Web3, peer-to-peer networks and blockchains has allowed state and non-state actors to influence areas such as trade, commerce, health and education.

Geography-based rules are no longer easily enforceable because of the declining significance of geographical borders in the era of high technology. Any form of virtual activity is not confined to the borders of a country. Data travels across the world at high speed.

Such activities are beyond the laws of a nation-state. It is extremely difficult in the absence of a globally accepted norm, to enforce the law in that geography. It is difficult to collect evidence without cooperation from other geographies.

It is also difficult to establish applicability of any country-specific legislation due to the universal nature of technology.

The emergence of newer technologies has exposed the incapacity and inability of the government of the nation-state to administer and regulate these technologies.

Multinational corporations, NGOs and supranational organisations are not limited to nation-states. These entities have transcended physical boundaries to collaborate with the rest of the world.

How has the borderless nature of technology challenged the traditionally accepted concepts of sovereignty, jurisdiction?

On the economic side, five largest American tech companies have a valuation of more than $4,100 billion. These have surpassed Germany’s GDP in terms of valuation. One of the most important levers of these companies is data and their use.

Data has become the most important raw material of our times. Only a handful of companies now hold economic power and influence over it. Their huge size allows them to increase the amount of information analysed by them to influence our activities.

What is the way forward to deal with the challenges presented by modern technology?

There is a need for a principle-based global order for technology. It would help in dealing with enforceability challenges in the adoption and diffusion of technology.

It can provide guidance to emerging economies to deal with the evolving definitions of their sovereignty.

There is a need for a data-sharing ecosystem based on privacy, free flow of data. A global regulatory system trusted by all countries; particularly developing countries is required.

India needs a data transfer and data privacy law. But these laws have limitations in the absence of a global principle-based regulation architecture trusted by all countries.

The finance minister has emphasized the need to have a globally coordinated approach to the regulation of digital assets such as crypto-currencies.

For India, G-20 is the perfect opportunity to take leadership as it has done earlier in green initiatives such as the International Solar Alliance or the Coalition for Disaster Resilient Infrastructure.

Modi and Biden’s New Asia

Source– The post is based on the article “Modi and Biden’s New Asia” published in “The Indian Express” on 7th June 2023.

Syllabus: GS2- International relations

Relevance- Issues related to changing global dynamics between major powers

News– 20th edition of annual Shangri-La Dialogue was concluded in Singapore over the weekend, to capture the shifting strategic trends in Asia.

What are the key highlights of this year’s Shangri-La dialogue?

This year’s SLD highlighted the deepening tensions between the US and China.

The US wants to resume high-level talks with China. It wants to focus on confidence-building measures to prevent the tensions from escalating into a hot war.

China is unwilling to accept the US terms of engagement. China sees the Biden administration’s persistent call for high-level dialogue as a trap.

The two ministers outlined their competing visions of regional security. Austin insisted that the US does not seek conflict or confrontation but will not tolerate bullying or coercion.

Chinese defence minister Li insisted that he was not against dialogue, but the US must create the right conditions. Li also accused the US of “double talk”.

Li is blaming America for the growing regional tensions. He warned against the resurgent “cold war mentality”. He demanded that mutual respect should prevail over bullying and hegemony.

Many Asian heads have criticised US actions but are silent on China’s deeds. There is a reluctance in the Asian countries to jeopardise the deep economic relationship with Beijing. There is a deliberate effort to avoid politically offending China.

Australian prime minister Anthony Albanese outlined Canberra’s strategy of engagement with China while standing up to Beijing’s military bullying.

Canada too is ready to join the geopolitical game in the Indo-Pacific. The Canadian defence minister has promised to ramp up Canada’s military presence in the Indo-Pacific.

What is progress made by the US Indo-Pacific strategy?

Many Asian nations have stepped up political and military engagement with the US. Chinese warnings against such cooperation with the US are having very little deterrent effect.

Top officials of the Biden administration have made frequent trips to the region to rebuild old alliances, develop new coalitions, and demonstrate the political will to confront China.

The US is taking measures to control technology exports to China. It has growing military support for Taiwan.

Washington is finding it difficult to convince Europe, which is deeply tied to the China market. But, NATO is now raising its game in Asia. Japan has taken the lead in drawing Europe into Asian security and South Korea is ready to join hands.

In the two and a half years, Washington has elevated the Quad to the summit level. It has unveiled the AUKUS alliance, launched trilateral coordination with Seoul and Tokyo,

It has unveiled a local quad – “along with Australia, Japan, and the Philippines” to counter the Chinese military pressures against Manila.

The US has been encouraging Japan to raise its military capabilities, modernising the military alliance with South Korea, revitalising the military partnership with Manila and enhancing security cooperation with Indonesia.

Which areas show the convergence of interests between India and the US?

Building a stronger strategic partnership with India has been a high priority for the Biden administration.

Austin travelled to Delhi. His talks with the Indian establishment have produced a “road map” for a significant elevation of bilateral defence cooperation. It includes technology transfers and joint defence industrial production.

For nearly two decades, India and the US have talked of transforming defence cooperation. The change in the Indo-Pacific and the shared interests in stabilising the Asian balance of power demand a solid India-US defence partnership.

Get, Jet, Go – on India-US agreement to co-produce fighter jets

Source– The post is based on the article “Bonn meeting: Taking stock of climate action” published in the “The Indian Express” on 7th June 2023.

Syllabus: GS 2- Bilateral and multilateral agreements involving India

News: India and the US have made significant progress in their strategic relations by agreeing to co-produce fighter jet engines.

India and the US are set to sign a formal agreement for the co-production of GE-F414 engines. The agreement may be signed in the next visit of Indian PM to the US. This agreement involves a 100% transfer of technology.

What is the significance of the agreement?

Only a few countries currently manufacture their own jet engines.

India’s previous attempt to develop an indigenous engine, the Kaveri project, failed to meet technical requirements. The new deal with the US is a crucial step towards building India’s own military-industrial complex in line with the goal of Atmanirbhar defence.

Given the changing geopolitical environment, including the China-Pakistan axis and the new China-Russia compact, strengthening the India-US military relationship is crucial for India.

Importing defence equipment from Russia become harder due to US-led sanctions against Moscow.

Law Commission’s sedition recommendations: Silencing what’s left of dissent

Source: The post is based on the following articles

“Law Commission’s sedition recommendations: Silencing what’s left of dissent” published in the Indian Express on 7th June 2023.

“Doubling down on sedition” published in the Business Standard on 7th June 2023.

Syllabus: GS 2 – Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Relevance: About retaining sedition law.

News: The 22nd Law Commission has said that the sedition needs to be retained, but certain amendments could be made for greater clarity regarding its usage.

What is Sedition?

What are the Law Commission’s recommendations for retaining sedition law?

What are the reasons given by the committee for retaining sedition law?

What are the key judgements under the Sedition Law after Independence?

What are the concerns associated with Law Commission’s recommendations for retaining sedition law?

According to Kapil Sibal, a Member of Rajya Sabha, criticised the commission recommendations on the following issues,

Make sedition more discretionary: the imposition of harsher punishments and make the law even more vague and discretionary. For example, both “tendency” and “inclination” are nouns used interchangeably in the English dictionary; they are by their nature open to interpretation.

Law Commission has a conceptual confusion: The difference between criticism of the government and acts against the State, which is punishable under different legislative enactments, might be misunderstood by the Law Commission.

Silence the critics: In the recent past, the sedition law has been used to silence journalists, academics, political opponents, and students, including minorities. The Law Commission’s recommendations are intended to silence even the limited opposition and protests.

Make sedition more draconian: The recommendations seek to make sedition law even more draconian. Even a tendency or a mere inclination to incite violence or cause public disorder can come within the ambit of sedition.

Out of sync with democracy: The Indian Penal Code already has provisions, such as Section 153A, under which scores of protestors can be arrested without a warrant. So, the enhancement of the sedition law is out of sync with democracy as plural and argumentative as India’s.

Overall, the government should not accept the recommendations of the Law commission for retaining sedition.

India-Nepal relations soar high

Source: The post is based on the article “India-Nepal relations soar high” published in the Business Standard on 7th June 2023.

Syllabus: GS 2 – India and Neighbourhood relations.

Relevance: About India-Nepal relations.

News: The recent visit of the Nepali Prime Minister to India has highlighted the ongoing developments in India-Nepal relations.

What are the key decisions made during the recent visit?

What are the recent developments in India-Nepal relations?

Why does Nepal need India’s assistance?

Poor state of Nepal’s economy: Nepal’s economy is in bad shape. It is facing food and fuel inflation, shortage of essential commodities, and depleting foreign exchange reserves. Nepal is also experiencing a recession with an increasing trade deficit, inflation, unemployment and declining foreign direct investments.

Currently, Nepal is seeking assistance from an extended credit facility offered by the International Monetary Fund. Thereby, its immediate focus is on containing inflation, and maintaining foreign exchange. In that, India can help Nepal significantly.

Political Instability in Nepal: Domestically, Nepal continues to be politically unstable. The lack of a clear majority in Parliament and the recent unveiling of the Bhutanese refugee scam has made the present government venerable.

Issues with Chinese project deliverance: China’s infrastructure and assistance has fallen short of Nepal’s expectations. Border infrastructure remains underdeveloped, and the trade deficit with China has grown disproportionately. None of the nine Belt and Road Initiative (BRI) projects have been implemented to date. China is even propagating Pokhara International Airport as part of its BRI, though Nepal has denied the claim.

China has also begun to intervene in Nepal’s internal politics to further its interests.  China’s limitations have compelled Nepal to focus on beneficial Indian projects and partnerships.

How India can improve India-Nepal Relations?

-Sustained engagement can address their mutual suspicions and build trust between India and Nepal.

-Recognise the strategic importance of each other in the evolving global order and maintain a positive momentum between India-Nepal relations.

GS Paper 3

Seeing India’s energy transition through its States

Source– The post is based on the article “Seeing India’s energy transition through its States” published in “The Hindu” on 7th June 2023.

Syllabus: GS3- Energy

Relevance- Issues related to energy transition

News- In the upcoming G20 forum, India is planning to propose a multiple energy pathways approach to accommodate the diverse contexts and development trajectories of countries.

Why are States critical actors in India’s energy transition?

There is a multi-tier governance of energy production and usage. An effective transition will require narrowing the implementation gaps between the Centre and the States.

India’s achievements on its 2022 target for 175 GW renewable energy offer some insights. Only Gujarat, Karnataka, and Rajasthan met their individual targets.

States are important for implementation. Centre may set goals. But the realisation of these goals often depends on how they are aligned with State priorities and capabilities.

There are legacy issues in the electricity sector, such as high losses, unreliable supply and service quality. It could be exacerbated by the transition. These must be addressed at the State level.

States are laboratories of policy innovations. For example, early initiatives by Gujarat and Rajasthan on solar have contributed significantly to renewable energy uptake at the national level.

Similarly, PM KUSUM is an adoption of successful State experiments on the solarisation of agriculture at a national scale.

States could also be roadblocks to national goals. It happens when the goals are perceived to be misaligned with State priorities.

What is the way forward to ensure that the state plays an important role in energy transition?

There is a need to engage with diverse State contexts, capabilities, and priorities. These are shaped by various factors like techno-economic options, fiscal space, and social and political imperatives.

An effective transition requires multi-scalar planning and execution strategy, consideration of inter-linkages and cross learning.

Central agencies have also developed multiple indexes that rank States on different aspects of energy transition. There is a need to complement this with analysis of State-level preparedness for energy transition.

How a state-level framework to understand plans, actions, and governance processes towards an energy transition will expedite transition?

First, it helps to broaden the transition discourse from a narrow set of outcomes. It includes the processes that shape the outcomes.

Understanding the effects of transitions on transparency and accountability in processes, and affordability and reliability of services is crucial.

It leads to greater transparency which could enable participation of stakeholders in the processes. It will ensure public legitimacy.

It would create a greater sensitivity to State-level diversities on priorities, capacities, and opportunities in the national policy discourse. It enables more evidence-based policy choices towards a pragmatic energy transition.

Bonn meeting: Taking stock of climate action

Source– The post is based on the article “Bonn meeting: Taking stock of climate action” published in the “The Indian Express” on 7th June 2023.

Syllabus: GS 3 – Environment – Climate Change

News– Negotiators from around the world are currently meeting in the German city of Bonn to discuss ways to strengthen their collective response to climate change.

One of the most important tasks to be accomplished at this year’s Bonn meeting is known as Global Stocktake.

What are some facts related to Global Stocktake (GST)?

It is mandated by the 2015 Paris Agreement. It is aimed at assessing the progress being made in the fight against climate change. It decides the ways and means to enhance the global effort to bridge the adequacy gap.

This exercise is expected to result in a significant increase in the global response to climate change.

The current stocktake has been going on for more than a year now. It is supposed to conclude this year. It is the first such exercise.

Why is the current set of actions inadequate to limit the global temperature rise within 1.5 degree Celsius from pre-industrial times?

The sixth assessment report of the IPCC gives clear indication of it. The world needs to cut its emissions by almost half by 2030 from the 2019 levels if it has to retain any realistic chances of achieving the 1.5 degree target.

At current levels of climate action, the world is headed to a nearly 3 degree Celsius warmer world by 2100.

Why is course correction on climate change difficult?

Under the Paris Agreement, countries are allowed to decide the level of their contribution to the global effort to contain climate change. 

But, the collective effort of every country is now proving inadequate. So, some amount of imposition is necessary. No country is comfortable with that.

Why do GST discussions have fault lines similar to climate negotiations?

Rich and developed countries want major emitters like China and India to do more. Developing countries have been reminding the developed countries of their unfulfilled commitments.

The fault lines were evident during the opening meeting of the third and final round of technical discussions on Tuesday.

The United States said bridging the gap was not the sole responsibility of the developed countries. It would not accept such suggestions in the GST decisions.

Developing countries argue that the developed countries were unable to deliver on their commitments. It was the main reason for the climate crisis in recent years.

The United States also said that the next round of climate action plans finalised by countries must have emission reduction contributions from all sectors of the economy.

This again was directed at countries like India. India has not committed to restricting methane emissions from agriculture.

What is the reaction of India to US suggestions on GST?

India reacted strongly to the US suggestion. As per India, it would not accept US messages on GST related to content of a country’s Nationally Determined Contributions.

India said it retained its “sovereign right” to determine its climate targets in pursuit of its national goals. It aligned itself with other developing countries in reiterating the demand for the closing of pre-2020 gaps.

An Expenditure Council could help promote fiscal prudence

Source: The post is based on the article “An Expenditure Council could help promote fiscal prudence” published in Live Mint on 7^th June 2023.

Syllabus: GS 3 – Indian Economy – Issues Related to Mobilization of Resources

Relevance: About the need of Expenditure Council

News: The government’s efforts to offer freebies may have economic implications. This highlights the need for a supervisory body, an Expenditure Council (EC), just like the GST Council.

What can be the responsibilities of Expenditure Council?

It would be responsible for developing guidelines and promoting consensus among state governments regarding resource allocation.

It can implement schemes that encourage inclusive growth, promote sustainable development, and maintain fiscal health. It could also play a crucial role in providing guidance to state governments in ensuring optimal utilization of funds.

What efforts have been taken in the past to examine India’s expenditure patterns?

The Expenditure Reforms Commission (ERC) set up by the Atal Bihari Vajpayee government in 2000 has examined India’s expenditure patterns.

Similarly, the current government formed an Expenditure Management Commission in 2014 to recommend spending reforms.

However, no such body facilitated a consensus-building platform between states and the Centre.

Can existing organizations take up the task of examining financial expenditure?

National Development Council (NDC): The NDC, which was associated with the now-dissolved Planning Commission, used to serve this purpose.  However, with the dissolution of the Planning Commission, the relevance of the NDC has faded.

Niti Aayog: The Niti Aayog is already burdened with multiple responsibilities, which can make it difficult for it to solely focus on this task in the absence of the Planning Commission. Even states may not be keen to collaborate with it on fiscal matters.

Finance Commission: It lacks a platform for effective collaboration and strategizing between the central and state governments regarding the efficient utilization of resources.

Thus, there is a need for an Expenditure Council (EC) to prioritise the areas, especially on the concurrent list where states can spend efficiently.

What can be the structure, objective and functionality of the EC?

Structure: The EC should have a composition similar to the GST Council, with the Union finance minister serving as the chairperson. Additional members should include the minister of state in the ministry of finance and finance ministers from all states and Union territories with legislative assemblies.

Objective: The primary goal of the EC should be to foster financial responsibility by establishing guidelines that discourage unnecessary expenditures. It can shift the focus towards prudent, strategic, and sustainable resource allocation. It can recommend states to refrain from such expenditures which lack long-term benefits.

Functionality: EC could analyse state-level schemes and budgets, identify unnecessary expenses, and recommend strategies for their reduction or alteration. It could also regularly publish reports and guidelines, providing a roadmap for state governments to follow.

Moreover, instead of imposing decisions, the EC should encourage dialogue and cooperation among states, facilitating the development of shared understandings.

Voting: In voting, EC should have the same mechanism as the GST Council. The Union finance minister would hold a third of the voting power, while the combined states possess the remaining two-thirds. Any decision would necessitate at least three-fourths of the total votes to pass.

There is also a need to establish robust dispute resolution mechanism to efficiently handle disagreements or disputes that might arise from its decisions.

Hence, this holistic approach would ensure that the EC is well-equipped to handle the complex nature of national financial planning, promoting sustainable growth and economic stability.

The Great India Stack Story

Source: The post is based on the article “The Great India Stack Story” published in The Times of India on 7^th June 2023.

Syllabus: GS 3 – Indian Economy – Inclusive Growth

Relevance: About digital financial inclusion

News: The article explains India’s achievement in digital financial inclusion.

How has financial inclusion evolved?

The term financial inclusion was first introduced by former RBI governor YV Reddy, emphasizing the importance of enhancing access to banking services for marginalized sections of society.

However, the term today has evolved to digital financial inclusion.

What is digital financial inclusion?

Digital financial inclusion includes universal access to and use of formal financial services relating to saving, borrowing, investing, insurance and pension by digital means. Thus, going beyond microfinance and microcredit.

India, in this area, has emerged as a global and undisputed leader during the past nine years.

What is India’s digital financial infrastructure?

India Stack is India’s digital financial infrastructure. It addresses nearly all aspects of financial inclusion using digital technology.

The infrastructure is secure, reliable, and interoperable among different companies. In terms of efficiency, access, cost effectiveness and scale, it has no competitors around the world.

India Stack effectively ‘stacks’ three different layers of digital infrastructure.

What are the three different layers of digital infrastructure in India Stack?

Layer 1: Layer 1 is the Aadhaar identity system, which enables electronic verification of an individual’s identity. Within this layer, electronic authentication of identity (e-KYC) and electronic signing of documents (e-Sign) are facilitated.

Layer 2: Layer 2 of India Stack is the payment layer formed by platform Unified Payments Interface (UPI), which intermediates secure fund transfers between Aadhaar-linked bank accounts in real time and at no or minuscule cost. The system facilitates peer-to-peer (P2P) as well as peer-to-merchant (P2M) transactions.

Layer 3: Layer 3 of India Stack is the data layer. Once fully implemented, financial information providers (FIPs) such as banks, credit rating agencies, insurance providers, etc. would store the transactions data of their customers under their Aadhaar numbers on the platform.

Financial information users (FIUs) such as lenders, wealth managers, brokers and wallet firms will have access to these data but not directly.

However, only the RBI-regulated account aggregator fiduciaries will have direct access to the platform and would, with the consent of the customer, provide their data to the FIUs in return for a fee.

This data sharing will speed up transactions such as loan and insurance sales and facilitate targeted marketing.

What can be the way ahead?

With the help of Layers 1 and 2, digital financial transactions have grown from just 4.4% of GDP in 2015-16 to 76. 1% in 2022-23.

Further, India’s digital platforms are also integrating financial inclusion with economic inclusion. The government now makes cash transfers directly to the bank accounts of farm families.

Even other countries are looking forward to adopting India’s DPI model. These all-show India’s achievements in financial as well as economic inclusion.

Prelims Oriented Articles (Factly)

Abaucin: How researchers used AI to find an antibiotic against a superbug

Source: The post is based on the article “How researchers used AI to find an antibiotic against a superbug” published in the Indian Express on 7th June 2023

What is the News?

Recently, Scientists from the United States and Canada have used Artificial Intelligence (AI) to discover a powerful antibiotic called Abaucin capable of fighting Acinetobacter baumannii superbug. This breakthrough holds immense promise in the fight against drug-resistant bacteria.

What is Acinetobacter Baumannii?

As identified by the World Health Organization (WHO), Acinetobacter baumannii is a dangerous bacterium resistant to antibiotics. Due to its remarkable capacity to develop resistance to all currently available antibiotics, it was recognised as a “red alert” human pathogen.

Infections: It can cause severe infections like pneumonia, meningitis, and wound infections, leading to fatalities.

Sources: Typically found in hospitals, Acinetobacter baumannii can survive on surfaces for long periods, making it difficult to eradicate.

Significance: Due to its remarkable capacity to develop resistance to all currently available antibiotics, it was recognised as a “red alert” human pathogen.

What is Antibiotic resistance?

What is Abaucin?

It is a compound that shows useful activity as a narrow-spectrum antibiotic. It is effective against Acinetobacter baumannii.

Working principle: It disrupts the normal function of the CCR2 protein in bacteria. This disruption hinders the movement of certain molecules inside the bacteria, preventing them from reaching the outer membrane. As a result, the growth of Acinetobacter baumannii is inhibited, reducing its ability to cause infections.

How AI discovered Abaucin?

Abaucin was discovered with the assistance of AI using a machine-learning model approach. Network was trained with a dataset of ~7,500 molecules screened for inhibiting Acinetobacter baumannii growth.

The network predicted structurally different molecules with activity against A. baumannii, including abaucin. Abaucin was experimentally validated and found to have potent antibacterial activity.

Note: The tests with AI yielded nine antibiotics, including abaucin.

508 districts in country are free of manual scavenging: Ministry report

Source: The post is based on the article “508 districts in country are free of manual scavenging: Ministry report” published in The Hindu on 7th June 2023

What is the News?

The Union Social Justice and Empowerment Ministry has said that only 508 of the 766 districts in the country have been declared free of manual scavenging. This data was revealed in a booklet the Ministry has prepared to outline its achievements in the nine years.

About the official data on manual scavenging in India

Over the past few years the Ministry has held that manual scavenging had been eliminated in the country. The deaths have been attributed to “hazardous cleaning of sewers and septic tanks”.

The officials differentiated manual scavenging from the hazardous cleaning of sewers, maintaining that the surveys conducted in 2013 and 2018 identified all existing manual scavengers (nearly 58,000). So they held that manual scavenging no longer existed in the country.

How India is tackling the issue of manual scavenging?

Scheme for rehabilitation of manual scavengers: Under this, the 58,000 identified sewer workers have been given a one-time cash payout of ₹40,000 each. In addition, around 22,000 of them have been connected to skills training programmes. Subsidies and loans are also available to them if they want to set up their own business.

NAMASTE scheme: The scheme for rehabilitation of manual scavengers was merged with NAMASTE scheme. The scheme aims for 100% mechanisation of sewer work. The Union Budget for 2023-24 showed ₹100-crore allocation for the NAMASTE scheme and no allocation for the rehabilitation scheme.

The scheme will require over 4,800 urban local bodies across the country to identify and profile all septic tank/sewer workers in their respective areas, provide them occupational training and safety equipment, and sign them up for health insurance under the Ayushman Bharat scheme, among other interventions.

The collaboration was ongoing with other Ministries, and the Housing and Urban Affairs Ministry was doing the bulk of the mechanisation work in the current phase. But, the guidelines for this scheme are yet to be finalised.

Read more:

‘Internet economy to hit $1 trillion by 2030’

Source: The post is based on the article “‘Internet economy to hit $1 trillion by 2030’” published in The Hindu on 7th June 2023

What is the News?

According to a report by Google, Bain & Company and Temasek, India’s Internet economy will hit $1 trillion in value by 2030, up from $175 billion in 2022.

What is the Internet economy?

The Digital Economy refers to an Economy in which digital computing technologies are used in Economic Activities. It is also referred to as the New Economy, Internet Economy or Web Economy. It comprises of B2C e-commerce firms, online service providers, ed-tech companies, and so on.

What are the findings of the report?

Reason for the boom: The growth would be driven by more Indians starting to transact online and the overall expansion of digital businesses.

Small towns are key: The key thrust would come from “Tier 2+ locations.” The changes were expected to be the most pronounced in smaller towns and rural areas in terms of impact on the value of the Internet economy, as only 13% of the Indians lived in metro and tier 1 cities.

Key sectors: HealthTech and InsurTech, both sized at or less than $2 billion today, will demonstrate the largest expansion.

Why is CRS, the body investigating the Odisha rail accident, under the Aviation Ministry

Source: The post is based on the article “Why is CRS, the body investigating the Odisha rail accident, under the Aviation Ministry” published in the Indian Express on 7th June 2023

What is the News?

The investigation of the recent train crash in Odisha is being conducted by the Commissioner of Railway Safety for the south-eastern circle. Rail safety commissioners are part of the Commission of Railway Safety (CRS), a government body that acts as the railway safety authority in the country.

What is the Commission of Railway Safety (CRS)?

Headquartered in:  Lucknow, Uttar Pradesh

Functions: CRS deals with matters related to the safety of rail travel and operations, among some other statutory functions mentioned under the Railways Act, 1989. These statutory functions include inspectorial, investigatory, and advisory functions.

Investigating serious train accidents is one of the key responsibilities of the CRS.

Administrative control: The CRS is under the administrative control of the Ministry of Civil Aviation (MoCA).

Why CRS is kept under the Ministry of Civil Aviation (MoCA)?

The CRS does not report to the Ministry of Railways of the Railway Board. The reason or principle behind this is to keep the CRS insulated from the influence of the country’s railway establishment and prevent conflicts of interest.

What is the evolution of the Commission of Railway Safety (CRS)?

Initially, the railways in India were constructed and operated by private companies. At the time, the British Indian government appointed ‘consulting engineers’ for effective control and oversight of the developing railway network and operations.

Later, when the British Indian government undertook the construction of railways in the country, the consulting engineers were re-designated as ‘government inspectors’. In 1883, their position was recognised statutorily.

In the first decade of the twentieth century, the Railway Inspectorate was placed under the Railway Board. As per the Indian Railway Board Act, 1905, the Railway Board was entrusted with powers and functions of the government under various sections of the Railway Act and was also authorised to make rules for railway operations in India.

The Government of India Act, 1935 said that functions for securing the safety of railway operations should be performed by an authority independent of the federal railway authority or the Railway Board. These functions included conducting railway accident probes. But due to the outbreak of the Second World War in 1939, the idea was not executed.

In 1939, a panel headed by the then chief inspecting officer of the British Railways, A.H.L. Mount, said that the separation of the Railway Inspectorate from the Railway Board was “very desirable”. In 1940, the Central Legislature endorsed the idea and principle of separation of the Railway Inspectorate from the Railway Board. Consequently, in 1941, the Railway Inspectorate was separated from the Railway Board and put under the administrative control of the then Department of Posts and Air.

The Inspectorate was re-designated as the CRS in 1961 and has been under the control of the central ministry exercising control over civil aviation in India.