9 PM UPSC Current Affairs Articles 2nd January, 2025

Mains Oriented Articles

GS PAPER - 2

Improvement in School Dropout Rates at the National Level

Source: This post on The Race for Fighters has been created based on The race for fighters: the IAF’s dilemma published in The Hindu on 2^ND January 2025.  

UPSC Syllabus topic: GS-2- Issues Relating to Development and Management of Social Sector/Services relating to Health, Education, Human Resources.

Context: The article highlights the evolving trends in school dropout rates across various states in India between 2019 and 2024. While the overall data indicates a positive improvement in the percentage of students continuing their education without dropping out, there are concerning disparities at the state level. The analysis focuses on upper primary and secondary education and reveals stark contrasts in educational outcomes across different regions and genders. Improvement in School Dropout Rates at the National Level

How has the overall school dropout rate in India changed from 2019 to 2024?

1. There has been a marked improvement. In 2024, over 80 out of every 100 girls completed secondary education without dropping out, compared to 73.5 in 2019.
2. Among boys, 77.2 completed secondary education in 2024 compared to 72.4 in 2019.

Which states have seen an increase in dropout rates between 2019 and 2024?

1. Bihar, Assam, Karnataka, Rajasthan, Gujarat, and Haryana have experienced an increase in dropout rates.
   In Bihar, the number of girls completing secondary education fell from 51.6 in 2019 to 40.3 in 2024. Among boys, it declined from 51.2 to 38.8.
2. In Karnataka, the number of girls completing secondary education declined from 79.3 in 2019 to 76.5 in 2024. For boys, it dropped from 73.6 to 70.7.

Which states have shown remarkable improvement in dropout rates?

1. Kerala and Tamil Nadu have shown significant improvements.
2. In Kerala, 99.6 out of 100 boys completed upper primary in 2019, which improved to 100 in 2024. Among girls, the number remained at 100 in both years.
3. For secondary schooling, boys’ completion rate rose from 88.3 in 2019 to 95.7 in 2024, and girls’ rate improved from 93.2 to 97.5.
4. In Tamil Nadu, the upper primary completion rate for boys increased from 99 in 2019 to 100 in 2024.
5. Among girls, it improved from 97.5 to 100. For secondary education, boys’ completion rate increased from 81.3 to 89.2, while girls’ rate rose from 89.4 to 95.6.

How do states compare in the degree of improvement in dropout rates?

1. States like Uttarakhand and Maharashtra showed improvement, but Uttarakhand’s rise was steeper.
2. For instance, Uttarakhand’s girls’ secondary completion rate rose from 83.5 in 2019 to 92.8 in 2024, improving its rank from 11th to 4th. Maharashtra’s corresponding figure improved from 83.5 to 90.5, moving its rank from 12th to 7th.

Which states have seen their rankings drop significantly?

1. Haryana, which was in the top 10 across all school levels and genders in 2019, dropped out of the top 10 in 2024.
2. Gujarat remained stagnant at the bottom of the rankings in both years.

State of India’s Parliamentary Proceedings

Source: This post on State of India’s Parliamentary Proceedings has been created based on “The sorry state of India’s parliamentary. State of India’s Parliamentary Proceedings ” published in The Hindu on 2^ND January 2025.  

UPSC Syllabus topic: GS-2 Parliament and State Legislatures

Context: The article offers a critical analysis of the current state of India’s parliamentary functioning and its implications for democracy.

What was the state of the recent winter session of Parliament?

1. The winter session was marked by frequent adjournments, minimal discussions, and negligible work accomplished.
2. Competitive disruptions by both the Opposition and the Treasury benches made the session a travesty.
3. A new low was reached with duelling demonstrations on the steps of Parliament, leading to accusations of assault and injury on both sides.
4. The session ended with widespread disillusionment, as many felt the legislature had failed the people of India.

What are the reasons behind the decline in Parliament’s functioning?

1. Precedent of Disruptions

• Disruptions have become normalized as part of Indian parliamentary practice.
• Past Speakers like Somnath Chatterjee were reluctant to enforce strict rules for fear of being labeled undemocratic.
• Expelling unruly MPs was avoided, even by subsequent Speakers like Meira Kumar, who sought all-party consensus before taking such steps.

2. Acrimonious Relations Between Government and Opposition

• Historically, a sense of civility existed between government and Opposition, with instances of mutual respect, such as Jawaharlal Nehru’s courtesy towards Atal Bihari Vajpayee.
• Presently, both sides treat each other as enemies rather than adversaries, eroding trust.
• The ruling party now condemns disruption, a tactic it extensively used when in Opposition.
• A “tit-for-tat” mentality pervades, reflecting the golden rule of Indian politics: “Do unto them what they did unto you.”

3. Diminished Public Expectations

• Earlier, skilled orators and debaters commanded respect for their parliamentary performances.
• Today, electability depends more on constituent services and local political influence than parliamentary skills.
• MPs are now evaluated based on party loyalty and disruptive tactics rather than reasoned debate.

How has the quality of parliamentary representation changed over time?

1. Skilled debaters like Ram Manohar Lohia and George Fernandes once acquired prominence through their contributions in Parliament.
2. Modern MPs prioritize television appearances over parliamentary debates.
3. Performance in Parliament no longer affects re-election prospects, leading to a decline in the quality of representation.

What are the consequences of these trends for Indian democracy?

1. Parliamentary standards have been declining for generations, with disruptions replacing debates.
2. The legislature’s diminishing importance erodes the democratic process, reducing Parliament to a mere formality.
3. The loss of Parliament as a consultative body could ultimately weaken Indian democracy itself.

Tackling Delimitation by Reversing Population Control

Source: This post on Tackling Delimitation by Reversing Population Control has been created based on Tackling delimitation by reversing population control published in The Hindu on 2^ND January 2025. 

UPSC Syllabus topic: GS -2-Issues Relating to Development and Management of Social Sector/Services relating to Health, Education, Human Resources.

Context: The article delves into the complexities of the proposed delimitation exercise in India and its implications for political representation, particularly in southern states such as Andhra Pradesh and Tamil Nadu. These states, which have successfully implemented fertility control measures and achieved lower population growth, are now facing the potential loss of parliamentary seats. Tackling Delimitation by Reversing Population Control

Why are the Chief Ministers of Andhra Pradesh and Tamil Nadu concerned about delimitation?

1. The Chief Ministers are concerned because the proposed delimitation exercise could reduce the number of parliamentary seats for southern States like Andhra Pradesh and Tamil Nadu.
2. This is due to their success in fertility transition, leading to a smaller share of the national population compared to northern States. Success in “family planning” might reduce their political representation in Parliament.

What policy changes has Andhra Pradesh considered regarding population control?

1. Andhra Pradesh is considering reversing its earlier law that barred people with more than two children from contesting local body elections.
2. The State is now contemplating rewarding families with more children to counteract declining fertility

Can fertility decline be reversed effectively through state intervention?

1. Fertility decline is generally irreversible through interventions, though minor natural reversals are possible.
2. Efforts in countries like China, Japan, and South Korea to incentivize higher fertility have largely failed.

What lessons can be learned from China’s one-child policy?

1. China’s one-child policy led to significant issues such as an imbalanced marriage market, a high dependency ratio, and extremely low fertility rates.
2. Forced reproductive regulations often result in demographic and social crises, showing the importance of balancing population control measures.

How does population momentum affect regional demographics in India?

While fertility rates are converging across Indian States, population momentum has kept the demographic divide wide between regions, with northern States having higher populations compared to the southern States.

Is population count a fair criterion for political representation in India?

1. Relying solely on population count for political representation could be unfair to regions that have achieved development through population control.
2. A balanced approach, incorporating educational and demographic characteristics, is needed.

What are the challenges women face in reversing fertility trends?

1. Encouraging women to have more children imposes a significant personal cost, as the state’s support for additional children and compensation for reproductive responsibilities is often inadequate.
2. Fertility decline, while beneficial at a macro level, has not adequately addressed the personal challenges faced by women.

Can migration address regional population imbalances?

1. Migration could help address immediate regional population imbalances.
2. However, long-term solutions require revising political representation criteria to value capability characteristics rather than solely population counts.

What is the ultimate solution to the delimitation issue?

1. Instead of reversing fertility, the solution lies in revising count-based political representation.
2. This would ensure fairness for States that have succeeded in population control and development.

GS PAPER - 3

The Race for Fighters

Source: This post on The Race for Fighters has been created based on The race for fighters: the IAF’s dilemma published in The Hindu on 2^ND January 2025.  

UPSC Syllabus topic: GS 3- Security

Context: The article delves into the critical challenges faced by the Indian Air Force (IAF) in modernizing its fighter fleet amidst an escalating technological race in the aviation domain, particularly with China’s advancements. It highlights the stark contrast between China’s rapid strides in defense and aerospace technology and India’s delayed modernization efforts, shedding light on the implications for regional security and India’s strategic readiness. The Race for Fighters

What has China achieved in fighter aircraft technology?

1. China has fielded two fifth-generation fighter jets, the J-20 and J-35, making it the only country apart from the U.S. with more than one fifth-generation fighter.
2. Recently unveiled two additional stealth jets with tail-less configurations:
   • A large, delta-wing design with three engines (likely for long-range missions).
   • A smaller, twin-engine jet with swept wings.
3. Videos of these aircraft, developed by Chengdu Aircraft Corporation and Shenyang Aircraft Corporation, surfaced on social media, but no official confirmation has been provided.
4. S. reports state that China is rapidly approaching U.S.-level technology, with a large fourth-generation fleet transitioning to fifth-generation capabilities.

How does the IAF compare to China?

1. The Indian Air Force (IAF) currently has 31 fighter squadrons, far below its sanctioned strength of 42.
2. India has no fifth-generation fighter in development that will be operational within the next decade.
3. While the IAF is focusing on indigenously developed platforms like the LCA-Mk1A, LCA-Mk2, and AMCA, their delivery timelines are delayed or uncertain.
4. Two MiG-21 squadrons are still operational due to delays in LCA-Mk1A deliveries.

What is India’s modernisation plan for the IAF?

India plans to acquire 500+ fighter jets, predominantly indigenously designed and manufactured, with the following priorities:

• LCA-Mk1A: 83 on order (delivery delayed due to supply chain issues with GE-404 engines).
• LCA-Mk2: Development expected to conclude by December 2027.
• AMCA (Advanced Medium Combat Aircraft): Fifth-generation fighter with a development timeline stretching into the next decade.
• MRFA (Multi-Role Fighter Aircraft): 114 jets under consideration for procurement, intended to include significant technology transfer.

What are the key challenges in IAF’s procurement plans?

1. Delays in engine deliveries:
   • GE-404 engines for the LCA-Mk1A delayed by COVID-related supply chain issues.
   • License manufacturing of GE F-414 engines is still under negotiation.
2. Aging fleet:
   • MiG-29s and Jaguars will start retiring by 2027-28, with Mirage-2000s and early Su-30MKIs phasing out by the early 2040s.
3. MRFA project delays:
   • RFI issued in 2019; no significant progress has been made.
   • Jets may not be available in significant numbers until the mid-2030s.
4. Dependence on foreign engines:
   • Despite plans for license manufacturing, India remains reliant on the U.S. and France for critical aero-engine parts.

What is India’s strategy for self-reliance in aviation?

1. India aims to increase indigenous production through HAL and DRDO initiatives.
2. Indigenous production rates:
   • 24 LCA jets annually, scaling to 30 per year once engine supplies stabilize.
3. Collaboration with France to co-develop a 110KN engine for the AMCA Mk2.
4. Despite efforts, a fully indigenous aero-engine remains a distant goal.

How does the IAF plan to meet its short-term needs?

1. A major upgrade program for Su-30MKI jets is in the approval stages.
2. Procurement of 12 additional Su-30MKIs to replace losses due to accidents.
3. Prolonging the operational life of aging aircraft to address immediate gaps.

What are the potential consequences of delayed timelines?

1. Even with planned acquisitions, the IAF is projected to have only 35-36 squadrons by the mid-2030s.
2. Delays in delivery and development of platforms like the LCA-Mk1A, LCA-Mk2, and MRFA could leave significant capability gaps.
3. Urgent alternatives may need to be explored if timelines slip further.

India’s economic challenges in 2025

Source: The post India’s economic challenges in 2025 has been created, based on the article “India 2025: Navigating an uncertain world” published in “Business Standard” on 2nd January 2025

UPSC Syllabus Topic: GS Paper3- Economy- growth and development

Context: The article discusses India’s economic challenges in 2025, including slowing growth and the need for more reforms. It mentions global risks like trade wars and financial tightening that could impact growth. It also highlights the importance of strategic trade deals and domestic policy changes to improve economic conditions. India’s economic challenges in 2025

For detailed information on Global Events Impacting India’s Economic Outlook in 2025 read this article here

What is the Current State of Affairs Economy?

1. Global Economy
2. The IMF forecasts a slowdown in global growth, projecting a baseline annual growth rate of 3.1% for 2024–2029, down from 3.7% during 2000–2019.
3. Key risks include conflict escalation, trade policy uncertainty, reduced migration, and tightening financial conditions.
4. Specific impacts are estimated as 0.5 percentage points reduction from conflicts and trade policies each, and 0.25 percentage points from lower migration and financial tightening each.
5. Indian Economy
6. India’s economic growth dropped to 5.4% in Q2 FY25, after higher growth rates in previous years (8.7% in FY22, 7.2% in FY23, 8.2% in FY24).
7. Concerns include a lack of domestic private investment and peaking GCC investments.
8. Fiscal deficit is projected at 4.9% of GDP for FY25 with public debt at 83% of GDP.

For detailed information on India’s Economic Slowdown and Its Future Outlook read this article here

Why is India’s Economic Growth Slowing?

1. Investment Peaks: The growth previously benefited from public capital expenditure and investments in global capability centers, which have now peaked.
2. Lack of Private Investment: There is a noticeable lack of revival in domestic private investment.
3. India struggles with red tape, labor, and land laws, which make it difficult to attract foreign investment despite subsidies like production-linked incentives (PLI). The ongoing issues with these regulations have prevented significant investment relocation from China, except for the production of iPhones.
4. Impact of Global Risks: Conflicts, trade policy uncertainties, and tighter financial conditions globally are expected to lower global growth further, affecting India indirectly.

What Strategies Could India Adopt?

1. Despite challenges, India could potentially attract more foreign investment through a China+1 strategy if a US-China trade war intensifies.

2. To encourage investment, particularly in labor-intensive sectors, India needs to ease regulations and collaborate with state governments.

3. India could benefit from negotiating trade deals, such as with the US, to manage trade deficits and expand trade relationships.
4. Joining groups like the Regional Comprehensive Economic Partnership (RCEP) or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) might increase deficits with China and complicate trade relationships.

What is the Economic Outlook for 2025?

1. The RBI predicts India’s growth will be around 6.7%, and the IMF forecasts 6.5% growth.
2. However, achieving a higher growth rate of 7.5-8% will require substantial reforms.
3. The upcoming budget is seen as a critical opportunity for implementing these necessary reforms.

Question for practice:

Discuss how India’s economic growth could be influenced by global risks such as trade wars and financial tightening in 2025.

Economic challenges and necessary reforms in India, China, and the US

Source: The post economic challenges and necessary reforms in India, China, and the US has been created, based on the article “Abandon myopic policies for the common global good” published in “Live mint” on 2nd January 2025

UPSC Syllabus Topic: GS Paper3- Economy- growth and development and Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth.

Context: The article discusses the economic challenges and necessary reforms in India, China, and the US. It suggests India should focus on labor and land reforms, China needs to reduce government control, and the US should avoid protectionism to ensure sustainable growth and global economic stability.

For detailed information on US protectionist policies read Article 1, Article 2

What are India’s economic challenges and necessary reforms?

1. Excessive Populism and Policy Stagnation: India’s vibrant democracy often sees policies that favor short-term gains over long-term benefits.
2. High Agricultural Employment with Low GDP Contribution: Approximately 44% of India’s labor force is employed in agriculture, which only contributes 17% to the GDP.
3. Need for Labor and Land Reforms: Shifting the workforce from agriculture to manufacturing requires significant land and labor reforms to improve industrial and infrastructural development.
4. Fiscal Discipline and Freebie Rationalization: To achieve sustainable growth, India must focus on fiscal responsibility and reduce dependency on government freebies.
5. Engagement with Stakeholders: Policymakers should work with businesses, civil society, and political opposition to promote necessary reforms for long-term development.

How is China’s economic model affecting its growth?

1. Centralization and Productivity Decline: China’s shift towards greater centralization under President Xi Jinping has coincided with a decline in total factor productivity growth, from 2.8% before the 2008 financial crisis to 0.7% afterwards.
2. Investment and Consumption Issues: Despite heavy investments, China’s consumer spending remains low at 53.4% of GDP, indicating inefficiencies and a lack of domestic demand stimulation.
3. Foreign Investment and Trade: Foreign direct investment in China has fallen for 12 consecutive months up to May 2024, and trade growth is slow, with exports growing only 2.4% and imports by 0.3% in September.
4. Policy Adjustments Needed: To sustain growth, China should reduce government interference, promote market-based reforms, and enhance fiscal transparency to avoid debt issues and stimulate consumer spending.

What challenges does the US face with its protectionist policies?

1. Increased Cost of Goods: US protectionist policies, particularly tariffs, directly raise the cost of domestically produced goods. This increase places a financial burden on both consumers and businesses.
2. Contradiction in Economic Goals: The implementation of tariffs by the US aims to reduce the trade deficit. However, this is at odds with maintaining the US dollar as the world’s reserve currency. Such conflicting goals can undermine the broader economic stability.
3. Impact on Global Positioning: By withdrawing from multilateral engagements and focusing on protectionism, the US risks losing its leadership role in the global economy, weakening alliances and international relations.

Question for practice:

Evaluate the effectiveness of US protectionist policies in achieving economic stability.

Rising Gas Costs Impact City Gas Sector

Source: The post Rising Gas Costs Impact City Gas Sector has been created, based on the article “Gas price rise and Trump’s expected policies” published in “Indian Express” on 2nd January 2025

UPSC Syllabus Topic: GS Paper3-Infrastructures-Energy

Context: The article discusses challenges in the city gas distribution sector, primarily due to reduced allocations of cheaper, regulated gas and increased reliance on more expensive gas sources. This is leading to higher costs and reduced profitability, potentially driving consolidation among companies in the sector. Rising Gas Costs Impact City Gas Sector

For detailed information on India’s gas policy has protected the consumer from global price volatility read this article here

What Are the Main Challenges Faced by the City Gas Distribution Sector?

1. The city gas distribution (CGD) sector is struggling with reduced allocations of cheaper, administered price mechanism (APM) gas, falling from 72% to 44%.
2. This reduction forces companies to depend on more expensive gas sources like high-pressure high-temperature (HPHT) gas or imported regasified liquified natural gas (RLNG), costing up to twice as much as APM gas.

How Are Rising Costs Impacting Sector Profitability?

1. Increased reliance on costlier gas sources is expected to raise costs by Rs 5 per standard cubic meter or Rs 7 per kg, significantly impacting profitability.
2. The domestic piped natural gas (D-PNG) and compressed natural gas (CNG) segments, which account for two-thirds of the sector’s volume, are particularly affected.
3. This shift may result in a projected loss of Rs 2,300 crore in sector profits next year.

What Competitive Pressures Exist in the Market?

1. CNG is losing its cost advantage over diesel, which is particularly impactful in the commercial vehicle sector.
2. With potential U.S. policy changes favoring more drilling and thus possibly reducing diesel prices, CNG’s competitiveness may further diminish.
3. Additionally, the rise of electric buses under the PM e-Bus Seva scheme is cutting into CNG’s market share.

What Does the Future Hold for the CGD Sector?

1. The sector is ripe for consolidation, driven by financial strain and competitive challenges.
2. Larger, financially robust companies might absorb smaller players struggling with high costs and limited access to cheaper gas.

3.This consolidation trend is particularly likely in areas where companies lack strong financial backing, indicating a significant shift in the landscape of the CGD sector.

Question for practice:

Discuss how the reduction in cheaper gas allocations and increased reliance on costlier gas sources are affecting the profitability and competitive dynamics of the city gas distribution sector.

Indian banking sector’s improvements and challenges

Source: The post Indian banking sector’s improvements and challenges has been created, based on the article “Express View on Indian banking system: In good health” published in “Indian Express” on 2nd January 2025

UPSC Syllabus Topic: GS Paper 3- Indian Economy and issues relating to planning, mobilisation  of resources.

Context: The article discusses the Indian banking sector’s improvements and challenges. It mentions a reduction in bad loans and higher profits but highlights increasing stress in unsecured retail loans and microfinance. It also points out issues like rising household debt and potential vulnerabilities in large borrower segments. Indian banking sector’s improvements and challenges

For detailed information on Factors that contributed to the stability of India’s banking sector read this article here

What is the Current State of Bank Asset Quality?

1. As of September 2024, Indian banks have seen their bad loans drop to a 12-year low at 2.6%. This improvement spans across all sectors, showing a healthier banking environment.
2. Banks have also increased their profitability, maintaining high provision coverage ratios and strong capital positions.
3. Stress tests by the RBI indicate that even under adverse economic conditions, most banks would remain well-capitalized, although four banks might struggle to meet the minimum capital requirement.

Where are the Problems in the Banking Sector?

1. There are increasing concerns in the unsecured retail loan sector, where there has been a significant rise in write-offs. More than half of the new bad loans in this segment stem from unsecured loans.
2. The micro-finance sector, which serves low-income households, is showing signs of stress with a high share of stressed loans and high impairment rates among borrowers with multiple loans.
3. Additionally, consumer credit data reveals that 11% of borrowers with personal loans under Rs 50,000 were overdue, and 60% had taken more than three loans in the current financial year, indicating growing household debt.
4. Gold loan non-performing assets increased by 30% to Rs 6,696 crore by June 2024 from Rs 5,149 three months earlier, highlighting rising distress in this segment.

Are There Concerns with Large Borrowers?

1. While bad loans among large borrowers have decreased from 4.5% in March 2023 to 2.4% in September 2024, there is an observed increase in loans overdue between 31 and 90 days.
2. The total unhedged external commercial borrowings as of September 2024 stood at $65.48 billion, pointing to potential financial exposure and vulnerabilities that need close monitoring.

Question for practice;

Discuss the potential risks associated with the increasing stress in unsecured retail loans and microfinance in the Indian banking sector.

Preparing India’s Workforce for Technological Job Changes

Source: The post Preparing India’s Workforce for Technological Job Changes has been created, based on the article “Let’s act now to create a resilient, adaptable and skilled workforce” published in “Live mint” on 2nd January 2025

UPSC Syllabus Topic: GS Paper3-Growth, development and employment.

Context: The article discusses the need for India to prepare for job changes due to technology advancements. It highlights the need to update education, enhance government-industry partnerships, and promote international skill mobility to ensure the workforce adapts and thrives in the evolving job market.

For detailed information on India’s Role in the Global Job Market read this article here

What is the Current State of the Global and Indian Job Market?

1. The global job market will see 83 million jobs disappear and 69 million new ones emerge in the next five years.
2. In India, to utilize its demographic advantage, about 7.85 million jobs need to be created annually until 2030 in the non-farm sector.

How are Different Sectors Transforming?

1. Manufacturing: Integration of AI and IoT is reshaping the industry. Example: In Howrah, AI is used in predictive maintenance for Indian Railways’ Vande Bharat trains, detecting 22 faults.
2. FMCG: Transition to data-driven roles. Hindustan Unilever runs over 13 billion AI computations daily to predict consumer behavior.
3. Healthcare: Increased use of AI for diagnostics. Apollo Hospital uses an AI-based system to assist in clinical decisions.
4. Energy: Focus on renewable sources. India’s aim for 500GW of renewable capacity by 2030 is expected to create 3.4 million clean-energy jobs.

How Can India Prepare Its Workforce?

To effectively prepare its workforce for future challenges, India can:

1. Update Educational Curricula: Integrate skills such as AI, automation, IoT, and critical thinking into educational and vocational training systems.
2. Strengthen Government-Industry Collaboration: Utilize initiatives like the Skill India Mission and National Apprenticeship Promotion Scheme to align training with dynamic industry needs. Programs like PM Vishwakarma Yojana bridge traditional skills with modern technologies.
3. Enable International Skill Mobility: Offer globally recognized certifications to help the workforce compete internationally.

Why Is This Important?

1. Adapting to these changes is essential for India to stay competitive globally.
2. It transforms demographic challenges into opportunities and positions India as a leader in shaping the future job market.
3. Immediate and collaborative efforts are necessary to maximize India’s demographic dividend and turn it into a global economic advantage.

Question for practice:

Examine how the integration of advanced technologies like AI and IoT in sectors such as manufacturing, FMCG, and healthcare is transforming the job market in India.

Prelims Oriented Articles (Factly)

Sultanpur National Park

News: The management of Sultanpur National Park aims to develop two water bodies to attract the migratory flamingoes, who have been populating the nearby Najafgarh wetland. 

About Sultanpur National Park 

• It is a popular bird sanctuary located in the Gurugram district of Haryana. 
• The park is a paradise for bird watchers, hosting both the migratory as well as resident birds, especially during the winter months. 
• History: 
  • 1971– It was accorded sanctuary status under the Punjab Wildlife Preservation Act of 1959. 
  • 1991– The park was upgraded to a National Park under the Wildlife Protection Act of 1972. 
  • 2021– It was notified as a Ramsar site under the criteria of the Ramsar Convention on Wetlands, 1971 
• Sultanpur Jheel, located inside the park, is the main source of water and attracts a large number of winter birds. 
• Flora and Fauna: 
  • Flora: It is dominated by tropical dry deciduous trees, which includes neem, khair, tendu etc. 
  • Fauna:  
    • Resident Birds: Common Hoopoe, Black Francolin, Spot Billed Duck, Painted Stork etc. 
    • Migratory Birds: Common Teal, Siberian Cranes, Northern Pintail etc. 

Tobacco Board of India

News: The Tobacco Board of India has claimed that Flue Cured Virginia (FCV) tobacco farmers’ earnings have more than doubled from Rs. 124 per kg (2019-20) to Rs. 279.54 (2023-24). 

About Tobacco Board of India 

• It is a statutory body established by the Tobacco Board Act, 1975 for the overall development of the tobacco industry. 
• Functions: 
  • Monitors the Virginia tobacco market to ensure fair and remunerative prices to growers, checking the volatility of the market. 
  • Establishes auction platforms for sale of Virginia tobacco by registered growers. 
  • Sponsors scientific, technological and economic research for promotion of the tobacco industry. 
  • Engages in extension and developmental activities to promote sustainable tobacco cultivation practices. 
• The board is administered by the Ministry of Commerce and Industry 
• It is headquartered in Guntur (Andhra Pradesh) 

Key factors behind doubling of FCV tobacco farmers’ earnings  Implementation of IT-enabled transparent electronic auction system  Export promotion activities carried out by the board  Providing financial relief to the tobacco farmers during times of need

 

Nitrate Contamination of Groundwater

News: A report by the Central Groundwater Board (CGWB) has found excessive nitrates in groundwater in 440 districts (as of 2023). 

Key findings of the report

• About 56% of India’s districts suffer from the problem of excessive nitrates in the groundwater. 
  • The study defines excessive nitrates in groundwater as more than 45mg per litre. 
• Out of the 15,239 groundwater samples collected for testing, 19.8% of them had nitrates concentration above the safe level. 
• The problem of nitrate concentration is particularly severe in the states of Rajasthan, Karnataka and Tamil Nadu. 
• A major issue of concern is that states in central and southern India (like Maharashtra, Telangana, Madhya Pradesh) are also showing a notable increase in nitrate contamination. 
• The major reason for nitrate contamination is overuse of subsidised synthetic nitrogenous fertilizers. 
• The report identifies fluoride and uranium as other major chemicals affecting the health of groundwater. 

Financial Stability Report

News: The Financial Stability Report, December 2024 has highlighted that Indian economy, and financial system remains robust amid global vulnerabilities. Financial Stability Report

Key findings of the Financial Stability Report 

• Prospects of Economic Growth: The Gross Domestic Product (GDP) is expected to grow at 6.6% in FY25 (2024-25), given the revival in rural consumption, increased government spending and services exports. 
• Fiscal Discipline: The union government’s debt to GDP ratio is expected to decline from 62.7% (2020-21) to 58.6% by 2024-25. 
  • States’ outstanding liabilities are also expected to decline from 31% to 28.8% during the same period. 
• Resilient Financial System:  
  • Scheduled Commercial Banks (SCBs)  
    • They display strong profitability, lower non-performing assets and adequate capital and liquidity buffers. 
    • Return on assets and return on equity are at a decadal high. 
    • The Gross Non-Performing Assets (GNPA) Ratio has fallen to a multi-year low. 
    • Even under adverse scenario, SCBs aggregate capital would remain much higher than the minimum regulatory capital requirement of 9% in March 2026. 
  • Non-Banking Financial Companies 
    • They are financially healthy with sizable capital buffers, robust interest margins and improved asset quality. 
    • Their Capital to Risk-Weighted Assets Ratio (CRAR) is expected to remain much above the regulatory minimum level of 15% even under a high-risk scenario. 
• Retail Inflation: It has come down to 5.5% in November 2024, largely due to softening of food prices and favorable base effect. 

The Financial Stability Report is released by the RBI every 6 months. It is based on the collective assessment of the Financial Stability and Developmental Council (FSDC) Sub-Committee.

 

Financial Stability and Developmental Council  It is a non-statutory body formed by the central government in 2010   Functions: It deals with issues related to financial stability, financial sector development, financial literacy and supervision etc.  Chairperson: Union Finance Minister  Members: Heads of financial sector regulators (RBI, SEBI, PFRDA, IRDA, FMC), Finance Secretary, Chief Economic Advisor etc.