Current Affairs Compilations for UPSC IAS Prelims 2022

Mains Oriented Articles

GS Paper 1

• The cultural markers of urbanisation

GS Paper 2

GS Paper 3

Prelims Oriented Articles (Factly)

Mains Oriented Articles

GS Paper 1

The cultural markers of urbanisation

News: The impact of urbanisation is not only limited to the demographic composition of an area but also has a much more lasting and profound impact on the cultural fabric of that area.

How do cultural markers of urbanisation create a lasting impact on society?

Sociologists used to think that urbanisation was nothing more than a simple population shift from rural to urban areas. But that is not the reality. Individuals from many ethnic backgrounds choose to migrate and dwell in cities, creating cultural concentrations

Over time, people can become “urbanised” and exposed to various cultures if they live in urban regions for a long time. They absorb these concepts and take them back to their smaller towns or villages, thereby influencing their immediate environments. For instance, large retail convenience stores in smaller towns are a clear marker of urbanisation.

These transformations are not as transitory. Instead, they are permanent. So, urbanisation, like globalisation, is aiding the transformation of the culture of a city.

Why India needs to pay attention to the cultural markers of urbanisation?

Increasing urban population: For the first time ever, in 2008, more people lived in cities than rural areas. About two-thirds of the world’s population is predicted to reside in urban regions by 2050 and more than half of the world’s population already living there.

GDP powerhouse: Further, metropolitan areas are thought to account for 70% of the global GDP. Cities serve as centres for trade, culture, research, productivity, and growth of society, the human race, and the economy.  So, India needs to pay special attention to the cultural markers.

Cities might de-link from traditional culture: Urban development has historically centred on culture. Cities without culture are just concrete and steel structures that are prone to social decay and disintegration and do not exist as vibrant living areas.

Sustainable development issues: But, the government face challenges in cities’ sustainable development. The primary challenge includes maintaining the quality of urban life, safeguarding urban identities, valuing local cultures, and promoting cultural expressions, arts, and heritage as pillars of sustainable social and economic development.

What should be done to ensure the sustainable development of cities?

A UNESCO report also highlights the interlinked role of culture in making cities more sustainable and invigorating their distinct identity. The report suggests that in order to ensure infrastructure and services are available to billions of people, decent housing must be provided, green public spaces must be created, and social unrest and epidemics must be prevented.

The current emphasis on urbanisation should include cultural elements in urban policies to ensure sustainability.

According to UN-Habitat’s “New Urban Agenda”, the focus is to make cities more sustainably developed, resilient and safe for human settlement and conducive to growth and prosperity. The New Urban Agenda must address these and other significant challenges.

GS Paper 2

New pension reform must reduce burden on future generations

Context: Recently, Government has constituted a committee to “improve” the NPS.

The issue of government employees’ pensions is a critical issue. Five states in India have already announced a shift from the New Pension Scheme (NPS) back to the old defined-benefit (DB) Pension Scheme (OPS). The Indian government is taking steps to improve NPS due to its growing importance.

Read about – Old Pension Scheme and New Pension Scheme

What are the challenges of New Pension Scheme (NPS)?

NPS funds are invested in market-linked securities. It has given an impressive annual return over 9% since its inception. However, there is a risk of lower future returns due to global trends of lower interest rates.

Therefore, NPS suffers from market risk and might end up with a reduced pension annuity.

What are the issues with Old Pension Scheme (OPS)?

First, it is neither funded nor fiscally sustainable.

Second, by the year 2100, the dependency ration of India will increase 5 times.  The World Health Organisation’s life expectancy simulations show that for people aged 60, life expectancy would increase from 18 to 27.9 years in this period. Therefore, pension support period will increase by 55 per cent just this century.

Third, the OPS employees currently get pension at 50 per cent of their last drawn salary. This pension further increases with a dearness allowance (DA) to account for inflation, twice every year. If 25 years post-retirement is counted, this pension increases exponentially with higher DA.

Fourth, in OPS, current workers finance those who are retired.

Fifth, with pension costs rising faster than revenue growth, this could potentially lead to decreased development expenditure and increased borrowing, leading to a debt trap.

Sixth, the base for determining the pension is the highest drawn salary instead of some average of earnings over the career followed globally.

What should be done?

A sustainable pension reform should retain contributions and the NPS fund management but avoid periodic increases in the annuity. The government could guarantee a certain percentage of the last drawn salary as a fixed annuity pension.

However, these guarantees should consider the declining trend in global interest rates and India’s economic development stage, both of which could reduce nominal returns on the pension corpus.

Additional benefits, like extending pension to the spouse and providing health and life insurance benefits, can be considered.

How India’s drug regulatory regime can ensure greater credibility for our pharma industry

Context: In the absence of effective regulations of pharmaceuticals industry, many casualties have taken place due to consumption of faulty medicines.

In January 2020, 12 children in Jammu died after consuming contaminated medicine manufactured by Digital Vision.

6 months later, a two-year-old from Himachal Pradesh died after consuming Cofset cough syrup, manufactured from the same company.

What are the issues associated with regulating pharmaceutical industry?

India has 36 drug regulatory bodies; however, an alarming number of drugs have recently failed to meet quality standards. For example, in February 2021, Global Pharma Healthcare had to recall a batch of eye drops exported to the US due to links with vision loss. Indian manufactured cough syrups caused many deaths in Gambia and Uzbekistan in 2022

Between November 2019 and November 2022, the US FDA raised 60 Official Action Indications (OAIs) against Indian pharmaceutical companies. It was found that procedures to prevent microbiological contamination of drugs were not established or followed. Also, environmental monitoring programmes do not include measures to control fungal contamination.

Some of these actions led to import alerts preventing them from supplying to the US market. These compliance failures can jeopardize India’s reputation as a reliable drug manufacturing nation.

3 per cent of all drugs in routine use — for hypertension, allergies and bacterial infections — were found to be substandard by regulatory inspectors.

What steps can be taken by government?

Despite the negative publicity, several countries still seek access to Indian generics. Therefore, the Indian pharmaceutical industry must take up the challenge and strive for zero defects in its products.

First, the Drugs and Cosmetics Act (1940) should be amended, and a centralised drug database should be created for effective surveillance of all pharmaceutical manufacturers.

Second, India’s 36 regional regulators should be merged into a single body.

Third, setting common standards across states could help reduce the risk of inconsistent regulatory enforcement.

Fourth, India has more than 10000 pharmaceutical manufacturing units. To cover all, additional budgetary support is needed to enhance inspection teams and enable more frequent quality-related inspections.

Fifth, increased transparency and credibility is required by public access to detailed notes of drug application reviews, past violations, inspection records, and failure history.

Sixth, there should be clear penalties for firms exporting spurious drugs, a public database of safety data, and a national law on drug recall.

Seventh, the Central Drugs Standard Control Organisation (CDSCO) needs to be reinforced with statutory backing and should be independent.

Leaky Oil Borrell – on EU’s stand over Russian Oil imports in India

News: Josep Borrell, the EU foreign affairs representative, criticized India for supposedly violating sanctions on Russia. However, the EU’s executive vice-president called for a more diplomatic approach, suggesting the EU and India should talk about the issue as friends.

This criticism was based on the report by Finnish research agency, Crea. It reported that India was bypassing sanctions on Russia. This was due to the EU buying Indian diesel and petrol made from Russian oil.

What is the background of these allegation?

As part of their sanctions on Russia, G7 nations had set the oil price limit at $60 per barrel last year. India then started buying more Russian oil, such that by March 2023, Russian oil made up 35% of India’s oil imports, up from just 1% before February 2022.

The EU has profited from this as it is India’s third largest trading partner. Much of their trade includes oil products, with India now exporting nearly 3.8 million tonnes of oil products to the EU, the G7, and others.

India has been supplying a lot of oil products to Europe, and this supply has tripled since Russia invaded Ukraine.

Crea reported that the EU was simply buying the same oil products from India that they used to buy directly from Russia. Therefore, it proposed a “place of origin” certification for products sold to the EU.

What is India’s stand on this criticism?

The foreign minister argued that once Russian crude oil is substantially processed in another country, it’s no longer considered Russian.

India is within its rights to import crude oil and export the processed products, regardless of the oil’s original source.

About USCIRF report: Predictable counter – Introspection will do India good in areas where it faces international criticism

News: For the fourth consecutive year, the government rejected the recommendations of the U.S. Commission on International Religious Freedom’s (USCIRF) latest report, calling it “biased and motivated”.

What is the USCIRF’s International Religious Freedom Report?

About the latest USCIRF’s International Religious Freedom Report 2023 and issues with the report

The report release was followed by a briefing by a senior official. He said according to the U.S. Holocaust Museum, which tracks majoritarian trends, India is ranked eighth among 162 countries on the risk of “mass killing”, a serious allegation.

What India should do?

India might come up with its own report on the state of religious freedom in the country to counter it. Further, India should introspect into the areas where it faces international criticism.

The government must also devise more comprehensive methods for rejecting any unsubstantiated and unfounded challenges to India’s reputation.

Two judgments and the principle of accountability

News: Recently, two Constitution Benches of the Supreme Court of India delivered important judgments. One is the Shiv Sena case and the other is regarding the administrative services in Delhi.

What are the SC judgments on these cases?

How did the two judgments are in contradiction to the core principle of each other?

According to M.R. Madhavan, the Maharashtra judgment contradicts the core principle applied in the Delhi case. He explains this using a) triple chain of command, b) daily assessment by the legislature.

Triple chain of command:

SC’s Delhi judgment adheres to the principle of triple chain of command: The issue in the Delhi case the court held that the civil services in the Delhi government would be accountable to the Delhi cabinet and not to the Union government. This entails a triple chain of command: civil service officers are accountable to Ministers; Ministers are accountable to the legislature; and the legislature is accountable to the electorate. According to the court judgment, severance of any link of this triple chain would be antithetical to parliamentary democracy.

SC’s Maharashtra judgment is against the triple chain of command: In the Maharashtra case, the SC ruled that the Tenth Schedule makes a differentiation between the legislature party and the political party. It determined that the power to issue directions was with the political party, and not the legislature party.

Therefore, the person in charge of the political party (who may not be a member of the legislature) would control every vote of the MLAs/MPs of that party. This reinforces the idea that the MP/MLA is not accountable to the electorate but only to the party. In doing so, it breaks the triple chain of accountability.

Daily assessment by the legislature:

In the Delhi judgment, the Court states that the government is assessed daily in the legislature through debates on Bills, questions raised during Question Hour, resolutions, debates and no-confidence motions.

But, in the Maharashtra judgment, the court states that the legislators of the party with a majority in the House have to abide by the directions of the political party. The party leadership controls the vote of its legislators on each issue. This makes the very idea of a daily assessment by the legislature meaningless.

How anti-defection law led to this contradiction?

According to the author, the problem lies in the anti-defection law. He says that the law contradicts the democratic principle of accountability of legislators to their voters. The anti-defection law is based on the assumption that any vote by an MP/MLA against the party direction is a betrayal of the electoral mandate. This, according to the author, is an incorrect interpretation of representative democracy.

The constitutional design of a parliamentary democracy envisages a chain of accountability. The accountability of the government to the legislature is on a daily basis, and legislators have to justify their actions to their voters in every election. But, the anti-defection law turn over this design by breaking both links of the chain.

What should be done to avoid this contradiction?

The court needs to relook at the 1992 Supreme Court judgment which upheld the anti-defection law.

India’s trade and economic ties with the EU are set to strengthen

News: In 2022, India and the EU economies celebrated 60 years of their relationship with the relaunch of talks on a bilateral trade agreement. The latest Brussels visit of the Union Minister for Commerce and Industry has added momentum to the negotiations.

About India-EU Goods and services trade

India is one of the world’s fastest-growing economies, so it offers EU investors an attractive alternative market to China.

-The EU is India’s third largest trading partner, accounting for 10.8% of India’s total trade in goods. In the last decade, trade in goods between the two economies rise by about 30%. The EU is a key export market for India.

India is the EU’s 10th largest trading partner, accounting for 2.1% of the EU’s total trade in goods. But this is well behind China’s 16.2% and the US’s 14.7%.

-Trade in services between India and the EU was around €30.4 billion in 2020.

-India has a positive trade balance with EU in many categories like agri-food products.

-Foreign investment from the EU to India has increased over the years. Over 6,000 European companies are present in India, which has led to significant job creation in the country.

What is the potential of India – EU trade and economic ties?

-The India-EU Trade and Technology Council (TTC) could serve as a platform to address some of the issues between India and the EU.

-Indian companies have vast potential to enhance exports and diversify the export basket. India could develop successful business partnerships, enhance exports and attract investment from the EU.

-India and the EU are participating in trade discussions in multiple forums, including the World Trade Organization (WTO) and G20. India – EU collaboration can make trade more inclusive and growth-oriented for developing countries, building resilient global value chains (GVCs), integrating micro, small and medium enterprises (MSMEs) in global supply chains by using digital platforms, logistics for trade, and WTO reforms.

-India and the EU have already agreed to work together on common priorities covering issues like its dispute resolution mechanism, subsidies on agriculture and fisheries, and an e-commerce moratorium. Both sides recognize the need to build on their common goals to pursue consensus-based solutions. This will support livelihoods and nutrition security for millions in India and other developing countries.

-There is scope for attracting investment in the logistics sector with PM Gati Shakti and the National Logistics Policy of 2022.

What are the challenges in the India – EU trade and economic ties?

EU has raised high-tariff-related concerns in sectors like dairy, alcoholic beverages and automobiles and auto components from India. On the other hand, the EU’s carbon tax is a cause of worry for India.

India and the EU have several other issues, like the content of an investment agreement, intellectual property rights and tackling climate change challenges.

What needs to be done to enhance India – EU trade and economic ties further?

India and the EU’s bilateral trade and investment flows can be enhanced through targeted interventions and collaborations. Such as, a) Creating joint-capacity building programmes for supporting MSMEs integration with GVCs, b) Support to startups in each other’s market, c) Conducting joint research, innovation and skilling programmes, d) Ensuring collaboration and joint projects on sustainable food systems, etc.

To address issues related to technical standards and the mobility of professionals, collaboration between regulatory bodies and mutual recognition agreements is essential.

India should explore the scope for collaborations to attract more tourists from the EU, enhance exports of organic products and traditional medicine such as organic food, Yoga and Ayurveda.

GS Paper 3

Towards a National Innovation System

News: Economists, focusing on the National Innovation System, believe that innovation largely happens at firms. Firm capacity is affected by both what they do themselves and the institutions around them.

What is the present situation of India in innovating its firm?

The top 2,500 firms investing in R&D worldwide account for around 90 percent of all industrial R&D. However, India has no firms in the top 2,500.

Even when Indian software companies are profitable, they invest just 1 percent of their average annual revenue in R&D, compared to a global average of 12 percent.

Therefore, India should increase its in-house R&D from 0.3 percent of GDP to match the world’s level of 1.5 percent. India also needs big R&D investors.

Where could big R&D investors in India come from?

India’s 10 most profitable non-financial firms are in software, oil refining, metals, and other industries.

They invested under $1 billion, or about 2 percent of profit, in R&D. However, companies in China invested around 29 percent of profit while companies in the US, Japan and Germany invested 37, 43 and 55 percent of profit in R&D.

Therefore, Indian industry should be present more in technology-intensive sectors to invest more in R&D. Within the industries that are already present in India, it is required that they invest closer to the world average.

These measures will then bring giant investors in R&D among the most profitable firms.

What can India learn from the world in firm innovation?

Japan, South Korea, Taiwan, Singapore, and China followed a particular sequence in building innovation capacity.

Firms in these countries first entered export markets as original equipment manufacturers (OEMs) supplying to foreign brands. This ensured world-scale capacity and brought competitiveness amongst the companies.

Later firms in these countries moved up the value chain to more technology-intensive sectors such as consumer durables, electronic assembly, etc. They also started to invest in in-house R&D in these sectors to sustain competitiveness.

These firms further moved to higher-technology sectors like semiconductors, pharmaceuticals, computers and went with increasing investments in in-house R&D.

All five East Asian governments funded R&D and followed the West in investing in public research in the higher education system to create researchers.

These researchers became the core of the in-house R&D departments of local firms.

In contrast, Indian Industry was forced to compete only after 1991 liberalisation, which was the first step of innovation in India.

The other steps in innovation have not yet happened in India as the Indian industry has been content with low R&D spending of 0.3 percent of GDP.

What can be the way ahead for India?

Pharmaceuticals and automobiles are the two technology-intensive sectors in which India has some presence in the global industrial R&D.

Pharmaceuticals dominate the R&D investments in India. It accounts for 34 percent of all Indian industrial R&D.

With this investment in R&D its sales account for 10 percent, which is lower than the world’s 16 percent. However, this ratio is decent relative to every other sector.

Therefore, India has an advantage in pharmaceuticals to build a world-class innovative industry.

12-Hour Workday Won’t Work

News: The governments of Tamil Nadu and Karnataka have recently allowed 12-hour workdays. The rationale behind this Arguments is that it will ensure higher domestic growth and foreign investment, thereby creating jobs.

However, developed economies have taken other measures to achieve these.

What steps have been taken by developed economies?

Developed economies have increased their GDP and attracted investments by growing the size of their manufacturing sector.

Manufacturing plays a key role in an economy’s growth and development because compared to other sectors it displays greater economies of scale and has a larger number of forward and backward linkages.

Further, unlike construction and the majority of services, manufacturing output is tradable. This means that firms cannot survive if they cannot compete in the global economy. This forces them to be more productive.

What is the current situation of India in manufacturing?

The share of India’s workforce in manufacturing has been around 12% since the early 1980s.  As of December 2022, total manufacturing employment in India stood at just 12.7% of the workforce.

The vast majority of workers, with low levels of education, who left agriculture have ended up either in construction or small-scale services, leading to low-productivity work.

Whereas the transition from farm to factory in Europe and East Asia increased the share of employment in manufacturing to 25-30%, reaching a peak.

What are the concerns present for India in the manufacturing sector?

India’s industrial policy has not been as effective as other countries like China. However, India has taken measures to improve its industrial policy for the manufacturing sector by introducing the PLI scheme.

Further, India is unable to attract foreign investments in the manufacturing industries as well as to promote domestic firms because of complex regulatory structure and inadequate infrastructure.

Since India suffers from these issues, it prefers focusing on labour law amendments.

Will amending labour law help India?

Without changing regulatory structure and infrastructure issues, labour law changes would not be of great help.

Moreover, Indian factories prefer employing contract laborers. This makes a vast majority of workers stay away from the labor laws benefits.

Therefore, a more transparent and uniformly enforced regulatory environment is needed to help employers and enable job creation to help workers.

Moreover, the biggest reason employers in India are much more powerful than workers is that workers far outnumber jobs. Therefore, the government must ensure the safeguarding of basic workers’ rights.

Further, regulatory changes must be accompanied by substantial investments in local and grassroots infrastructure. Else, labour law changes will not be beneficial and effective.

What can be the way ahead?

Balancing the wellbeing and safety of workers while allowing employers the flexibility to deal with fluctuations in market conditions is imperative for a well-functioning capitalist economy.

Hence, if India wants both economic growth and decent jobs then this balance must be maintained.

Why are financial regulators transitioning from LIBOR?

News: The Reserve Bank of India (RBI) said on May 12 that some banks haven’t completely stopped using the London Interbank Offered Rate (LIBOR).

In 2020, RBI had asked banks to analyse their LIBOR exposures and prepare for the adoption of alternative references rates like Secured Overnight Financing Rate (SOFR) and Modified Mumbai Interbank Forward Outright Rate (MMIFOR).

RBI has announced that Contracts entered after (or before, if possible) December 31, 2021, were not to use the LIBOR as reference rate.

What is LIBOR?

LIBOR is a global benchmark interest rate. It combines individual rates collected from banks at which they may borrow from each other (for a particular period of time) at the London interbank market.

LIBOR is used as a benchmark to settle trades in futures, options, swaps and other derivative financial instruments in over-the-counter markets.

How is LIBOR decided?

Banks on the LIBOR panel submit their suggested interest rate at 11 AM on every business day to news and financial data company, Thomson Reuters.

The company then averages the middle quartiles to derive the LIBOR. It excludes the Extreme quartiles, on the top and bottom.

What is the controversy in the methodology of LIBOR?

This mechanism is heavily dependent upon the banks in the panel to be honest in the interest rate suggestions.

The phenomenon of dishonest submissions was on display during the 2008 financial crisis when submissions were artificially lowered.

In 2012, Barclays admitted to the misconduct and agreed to pay $160 million in penalties to the U.S. Dept of Justice.

Another observation was the banks were changing the submission to acquire more profits.

What alternatives are available to LIBOR?

Therefore, an alternative was announced in 2017 by the U.S. Federal Reserve, which was Secured Overnight Financing Rate (SOFR).

India also announced the use of SOFR and the Modified Mumbai Interbank Forward Outright Rate (MMIFOR), instead of MIFOR, for all new transactions.

SOFR comprises the weighted averages of the rates charged in these repo transactions. It is collateralised by U.S. Treasury securities. Therefore, it is a transaction-based rate and does not require any expert calculation. It also makes it less prone to manipulation.

Regulating AI – on EU’s draft Artificial Intelligence law

News: The European Parliament’s committee has approved a draft artificial intelligence (AI) law.

What are the provisions of EU’s draft Artificial Intelligence law?

Scope of the act: The proposed Act aims to establish standards for AI deployment within the European Union (EU). This act applies to any entity serving EU residents, much like the EU’s General Data Protection Regulation (GDPR).

The Act prohibits several types of AI tools that infringe on privacy or enable discrimination.

Risk based Categorisation: AI will be categorized based on risk levels, from minimal to limited, high, and unacceptable. High-risk tools will be allowed under strict oversight, auditing, and transparency requirements.

Banned Systems: It will ban systems such as real-time remote biometric identification systems used in public spaces and post-real-time use of such systems. Certain exceptions are provided for law enforcement in serious crimes following judicial authorization.

Other prohibited systems include biometric categorization based on sensitive attributes, such as race, gender, or political orientation, and predictive policing systems.

The Act also prohibits the widespread scraping of biometric data from social media or CCTV footage to create databases. Also, “emotion recognition” systems used in several contexts to detect discomfort through facial expressions or body language.

High-risk AI will include systems that ae potentially harmful to health, safety, fundamental rights, or the environment. It will include AI used in political campaigns to influence voters and recommendation systems used by large social media platforms.

Generative models, like GPT, would need to comply with robust transparency requirements.

Exemptions: There are provisions for exemptions for research activities under open-source licenses, and the Act supports the establishment of regulatory sandboxes to test AI before deployment.

The Act further introduces legislation to facilitate citizens in filing complaints and requesting explanations for AI-based decisions affecting them.

Express View on the Insolvency and Bankruptcy Code: Changes are needed to ensure its smooth functioning

News: The Insolvency and Bankruptcy Code failed to provide a time-bound resolution process as envisaged in the code.

What is the performance of the Insolvency and Bankruptcy Code so far?

At the end of March, 6,571 cases had been so far admitted under Insolvency and Bankruptcy Code. Of these admitted cases, 4,515 cases have been closed, while proceedings are ongoing in the remaining. A staggering 45% of the closed cases have ended up in liquidation, while the rest have been either resolved, withdrawn or appealed.

Of the total admitted claims of creditors estimated at Rs 8.98 lakh crore in various cases, the total realisable value was only Rs 2.86 lakh crore. Almost two-thirds of the current resolution proceedings have crossed the 270-day deadline.

In the cases currently undergoing liquidation, 55% have been going on for more than two years. Such delays will lead to further destruction in the value of assets.

What is the performance of pre-packaged insolvency resolution process for MSMEs?

In 2021, the government brought in amendments to introduce a pre-packaged insolvency resolution process for MSMEs. This framework provides the space for a direct agreement between the firm’s owners and its financial creditors, with the debtor remaining in control during the process. But, the framework has not gained traction. For example, only four applications have been admitted under this framework as on March 2023. Of that, one has been withdrawn.

What should be done to revamp the IBC?

The government is likely to introduce further amendments. This should be focused on cutting down the delays in the process, ensuring smooth functioning, and increasing the efficiency and effectiveness of the Code.

Prelims Oriented Articles (Factly)

Centre more than doubles outlay on PLI for IT hardware to ₹17,000 crore

Source: The post is based on the article “Centre more than doubles outlay on PLI for IT hardware to ₹17,000 crore” published in The Hindu on 18th May 2023

What is the News?

The Union Cabinet has approved an updated Production Linked Incentive (PLI) scheme for IT hardware manufacturing.

What is the PLI Scheme 1.0 for IT Hardware?

The PLI scheme for IT hardware was initially introduced in March 2021.

Under the scheme, domestic players investing Rs 20 crore and clocking sales of Rs 50 crore in the first year, Rs 100 crore in the second, Rs 200 crore in the third, and Rs 300 crore in the final year, would get incentives of 1-4% on incremental sales over 2019-20, the base financial year. 

How has this PLI scheme 1.0 for IT Hardware performed?

The first version of the scheme was a laggard with only two companies – Dell and Bhagwati – managing to meet first year’s (FY22) targets, and the industry calling for a renewed scheme with an increased budgetary outlay.

What are the changes made in the PLI Scheme 2.0 for IT Hardware?

The incentive rate has been increased to 5%, offering a higher benefit to companies investing in domestic manufacturing.

Companies that locally manufacture certain components including memory modules, solid-state drives and display panels will also get additional incentives under the restructured scheme. 

If the optional incentives are utilized as intended, the total incentive under the scheme could amount to 8-9%.

There will also be flexibility in choosing the base year as well.

Key climate threshold likely to be breached in 5 years: UN

Source: The post is based on the article “Key climate threshold likely to be breached in 5 years: UN” published in The Hindu on 18th May 2023

What is the News?

According to the World Meteorological Organization (WMO) report, global temperatures are likely to surge to record levels in the next five years, fuelled by heat-trapping greenhouse gases and a naturally occurring El Niño weather pattern.

What has WMO said in its report?

There is a 66% likelihood that the annual average near-surface global temperature between 2023 and 2027, will be more than 1.5°C above pre-industrial levels for at least one year.

These chances are rising due to emissions from human activities and a likely El Niño weather pattern later this year.

What does going over 1.5 °C mean?

The figure is not a direct measure of the world’s temperature but an indicator of how much or how little the Earth has warmed or cooled compared to the long-term global average.

Scientists use average temperature data from the period between 1850-1900 as a measure of how hot the world was before our modern reliance on coal, oil and gas.

For decades, they believed that if the world warmed by around 2 °C that would be the threshold of dangerous impacts – but in 2018 they significantly revised this estimate, showing that going past 1.5 °C would be calamitous for the world.

Over the past few decades the overheating world has nudged the mercury up so that in 2016, the warmest on record, global temperatures were 1.28 °C above the pre-industrial figure.

What difference will El-Nino make?

There are two key elements – the first is the continuing high levels of carbon emissions from human activities that despite a fall during the pandemic are still going up.

The second is the likely appearance of El Niño, a weather phenomenon with global implications.

For the last three years, the world has been experiencing a La Niña event which has dampened climate warming to some extent.

But the extra heat that El Niño will bring to the surface of the Pacific this year will likely push the global temperature to a new high next year.

Due to this, there is a 98% chance of at least one in the next five years beating the temperature record set in 2016, when there was an exceptionally strong El Niño.

Note: Typically, El Niño increases global temperatures in the year after it develops, in this case, that means 2024.

Middle East to India Deepwater Pipeline (MEIDP): $5-billion undersea UAE-Gujarat gas pipeline proposed

Source: The post is based on the article “$5-billion undersea UAE-Gujarat gas pipeline proposed” published in The Hindu on 18th May 2023

What is the News?

South Asia Gas Enterprise (SAGE) has sought the support of the Ministry of Petroleum and others to develop an undersea gas pipeline from the Gulf to India. 

What is the Middle East to India Deepwater Pipeline (MEIDP)?

It has been proposed by South Asia Gas Enterprise (SAGE).

It is a 2,000-km-long energy corridor that aims to connect the Gas Rich Gulf & Middle East regions to India, for the transportation of Natural Gas to secure India’s Energy Needs.

The route being looked at is via Oman and UAE through the Arabian Sea to avoid geopolitically sensitive regions. 

The pipeline will allow options to import gas from Oman, UAE, Saudi Arabia, Iran, Turkmenistan and Qatar, a region with 2,500 trillion cubic feet (tcf) of gas reserves.

The pipeline is projected to deliver 31 million metric standard cubic meters per day (mmscmd) of gas to India under a 20-year long-term supply contract.

If realized, the pipeline could result in annual savings of around 7,000 crores compared to importing an equivalent quantity of liquefied natural gas (LNG).

What is South Asia Gas Enterprise (SAGE)?

SAGE is an international consortium of companies in deepwater pipeline projects.

It is being promoted by the New Delhi-based Siddho Mal Group, in Joint Venture with a UK-based Deepwater Technology Company.

C-PACE has gone live from May 1: MCA

Source: The post is based on the article “C-PACE has gone live from May 1: MCA” published in The Hindu on 18th May 2023

What is the News?

The Ministry of Corporate Affairs (MCA) has established the Centre for Processing Accelerated Corporate Exit (C-PACE) to centralize the process of striking off companies from the MCA Register.

What is the Centre for Processing Accelerated Corporate Exit (C-PACE)?

C-PACE has been set up to ensure a clean registry, provides hassle-free filing and timely, process-bound striking off of company names from the Register.

It operates through the Registrar of Companies (RoC) and is part of MCA’s efforts to improve the Ease of Doing Business and facilitate company exits.

Located at: Indian Institute of Corporate Affairs in Gurgaon.

Note: Section 248 of the Companies Act, 2013 provides for the removal of the name of the company from the RoC, if it is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within the said period for obtaining the status of a dormant company under Section 455.

Take steps to reduce unnecessary hysterectomies, Centre tells States

Source: The post is based on the article “Take steps to reduce unnecessary hysterectomies, Centre tells States” published in The Hindu on 18th May 2023

What is the News?

The Union Health Ministry has written to States and Union Territories to curb unnecessary and unjustified hysterectomies on poor, less-educated women, particularly in the rural areas.

What is Hysterectomy?

Hysterectomy is surgery to remove the uterus. After a hysterectomy, one will not menstruate (have periods) or be able to get pregnant.

In India, there is increasing concern about patterns of hysterectomy at a population level. The community-based studies have consistently found rising hysterectomy rates among young women, between 28 and 36 years.

According to National Family Health Survey-4 (2015-16) estimates, the prevalence of hysterectomy was 3.6% among women 30 to 39 years of age and 9.2% among those who were between 40 and 49.

Prevalence of Hysterectomy varied greatly across states, with Andhra Pradesh and Telangana recording 20 to 23% in the age group 40 to 49.This was close to high-income countries — yet at a considerably low median age.

What did the Supreme Court say on Hysterectomy?

A petition was filed in the Supreme Court in 2013 about the involvement of private hospitals in performing such hysterectomies.

The petitioner said that women who should not have been subjected to hysterectomies but should have been provided alternative treatment.

Moreover, most women who were subjected to hysterectomies of this kind belonged to the Scheduled Castes, Scheduled Tribes, or Other Backward Communities.

On this, the Supreme Court directed States and Union Territories to implement health guidelines formulated by the Centre to monitor “unnecessary” hysterectomies within three months. 

The court said that the “Right to health is an intrinsic element of the right to life under Article 21 of the Constitution. Life, to be enjoyed in all its diverse elements, must be based on robust conditions of health. There has been a serious violation of the fundamental rights of the women who underwent unnecessary hysterectomies”.

Govt introduces Minimum Import Price for apples in J&K to support local growers

Source: The post is based on the article “Govt introduces Minimum Import Price for apples in J&K to support local growers” published in TOI on 18th May 2023

What is the News?

The Central Government recently introduced the Minimum Import Price (MIP) for apples in Jammu and Kashmir (J&K).

What is Minimum Import Price(MIP)?

MIP is a temporary measure to provide protection to domestic industry from predatory pricing of imports. Below this price, import of the commodity is not allowed.

Directorate General of Foreign Trade (DGFT) is an arm of the commerce ministry which frames rules related to exports and imports.

Why has the Government introduced MIP for apples in J&K?

Jammu and Kashmir have been a prominent hub for apple cultivation for many decades. In 2019, Kashmir alone produced a staggering 1.9 million metric tons of apples, the highest in the country.

Despite the region’s success in apple production, local growers have faced numerous challenges in recent years due to the influx of tax-free apples from foreign countries. 

This unfair competition has adversely affected their livelihoods. The absence of import taxes on foreign apples created an uneven playing field for J&K apple growers, who had to bear additional expenses such as transportation, packaging, and cold storage. 

As a result, their profits declined, making it increasingly difficult to compete with the imported produce flooding the market at lower prices.

Recognizing the plight of J&K apple growers and the need to protect their interests, the central government has taken a proactive step by introducing the Minimum Import Price (MIP) for apples.

BL Lacertae: Observations from 11 global telescopes lead to detection of the brightest flare of a century-old blazar

Source: The post is based on the article “Observations from 11 global telescopes lead to detection of the brightest flare of a century-old blazar” published in PIB on 18th May 2023

What is the News?

The brightness of BL Lacertae (BL Lac), a blazar discovered almost a century ago has been found to have reached its maxima.

What is BL Lacertae (BL Lac)?

BL Lacertae object or BL Lac object is a type of active galactic nucleus(AGN).

It is located about 950 million light years from the Earth.

Note: Active galactic nuclei (AGN) are located in the core of the galaxy. They are compact structures showing anomalous luminosity from time to time. 

– The deviation in their brightness levels can vary and last either for a few hours, days, weeks or even months. 

– This luminosity variance, when seen with the naked human eye, is nothing but electromagnetic emissions that are visible across the radio, microwave, infrared, optical, ultraviolet, X-ray and gamma wavelengths.  

What have researchers found about BL Lacertae (BL Lac)?

Researchers found that the flare emanated from BL Lac had reached the maxima.

This was detected using the continuous observations made by an ensemble of eleven optical telescopes located across the world. One among them was the Himalayan Chandra Telescope located in Ladakh’s Hanle. 

Are artificial sweeteners harmful for your health? Here’s what the WHO has recommended

Source: The post is based on the article “Are artificial sweeteners harmful for your health? Here’s what the WHO has recommended” published in Indian Express on 18th May 2023

What is the News?

The World Health Organisation has recommended against using artificial sweeteners to achieve weight loss and prevent lifestyle diseases such as diabetes.

What are Artificial Sweeteners?

Artificial sweeteners provide a sweet taste with very little to no calories. 

Many diabetics use sweeteners in their tea and coffee, but there is a growing market for packaged foods and beverages using these sweeteners to offer low-calorie options.

What has the WHO said about the use of Artificial Sweeteners?

WHO has said that artificial sweeteners should not be used as a means of achieving weight control or reducing the risk of non-communicable diseases.

Due to the use of artificial sweeteners, there could be some weight loss and reduction in Body Mass Index in the short term but in the long run, they have been linked to weight gain.

The sweeteners have also been linked to an increased risk of Type-2 diabetes, cardiovascular diseases and mortality in the long run. 

Some low-certainty data also linked the use of such artificial sweeteners to bladder cancer and preterm birth when consumed by pregnant women.

Note: The WHO has made these recommendations for everyone other than those who are already diabetic.

Union Minister launches Sanchar Saathi portal

Source: The post is based on the article “Union Minister launches Sanchar Saathi portal” published in PIB on 17th May 2023

What is the News?

The Union Minister of Communications has launched the Sanchar Saathi portal.

What is Sanchar Saathi Portal?

Sanchar Saathi portal is a citizen-centric initiative of the Department of Telecommunications to empower mobile subscribers, strengthen their security and increase awareness about citizen-centric initiatives of the Government. 

The portal allows citizens to: 1) Check the connections registered on their names, 2) Report fraudulent or unrequired connections, 3) Block the mobile phones which are stolen/lost and 4) Check IMEI genuineness before buying a mobile phone.

Modules: The portal has the following modules:

Centralized Equipment Identity Register(CEIR)

Know Your Mobile: It facilitates the citizens to check the genuineness of IMEI on their mobile devices.

Telecom Analytics for Fraud Management and Consumer Protection (TAFCOP): It facilitates a user to check the number of mobile connections taken in her/his name using paper-based documents. 

– User enters her mobile number on the portal and authenticates using OTP. The system shows the total connections taken in her name using paper-based documents (such as paper-based Aadhar, passport, etc.).

– The system allows users to report fraudulent connections. It also allows users to block the connections which are not required.

– Once reported by the users, the system triggers a re-verification process, and the connections are terminated.

ASTR (Artificial Intelligence and Facial Recognition powered Solution for Telecom SIM Subscriber Verification): Mobile connections obtained using fake/ forged documents are used for cyber-frauds.

– To curb this menace, the Department of Telecom has developed an AI-powered tool – ASTR to identify SIMs issued using fraudulent/forged documents. 

– ASTR detects individuals who have registered more than 9 mobile connections – the maximum allowed currently – to verify whether they have been created using legitimate means.

– For this, ASTR uses various techniques of facial recognition and data analytics to identify.