9 PM UPSC Current Affairs Articles 30th December, 2024

Mains Oriented Articles

GS PAPER - 2

The Challenge of Holding Judges Accountable in India

Source: This post on The Challenge of Holding Judges Accountable in India has been created based on article “The challenge of holding judges accountable” published in The Hindu on 30^th December 2024.

UPSC Syllabus topics- GS 2-Polity

Context: The article delves into the challenges surrounding judicial accountability in India, focusing on the limitations and intricacies of the current mechanism for holding judges of the higher judiciary accountable. The discussion gains relevance in light of recent controversies, such as the conduct of Justice Shekhar Kumar Yadav of the Allahabad High Court, and reflects on historical precedents like the cases of Justices V. Ramaswami, SoumitraSen, and P.D. Dinakaran. The Challenge of Holding Judges Accountable in India

What is the process for holding judges accountable in India?

1. The review mechanism requires “proved misbehaviour or incapacity” as determined by a three-member committee under the Judges (Inquiry) Act, 1968.
2. The committee is activated only after an impeachment motion is successfully moved in either the LokSabha or the RajyaSabha and approved by the presiding officer of the House.
3. Articles 124(4), 124(5), 217, and 218 of the Constitution of India, along with the Judges (Inquiry) Act, 1968, outline the procedure.

Why is Justice Yadav’s case significant?

Justice Yadav’s speech at an event organized by the Vishwa Hindu Parishad highlighted biases against the Muslim community, spotlighting challenges in holding judges accountable.

What were the past impeachment cases?

Allegations against Judges	Outcome
Justice V. Ramaswami- ·       Accusations included extravagant spending on his official residence and purchases like silver-headed maces without proper tendering. ·       He was found guilty by the three-member committee, but an impeachment motion failed in the LokSabha in 1993 due to 205 abstentions by Congress members, despite 196 votes in favor.	Despite the motion’s failure, then CJI Sabyasachi Mukherjee did not allocate work to Justice Ramaswami, and no cases were assigned to him until his retirement.
Justice SoumitraSen-Misappropriation of ₹33.23 lakh in 1983 as a court-appointed receiver and misrepresentation of facts.	The RajyaSabha voted overwhelmingly for his removal, but he resigned in September 2011 before the LokSabha could table the motion.
Justice Dinakaran-Serious charges included appropriating over 300 acres of farmland in Tamil Nadu.	He resigned on the day of the first sitting of the three-member committee investigating the charges, effectively halting the process

How does resignation affect accountability?

1. Resignation allows judges to avoid impeachment proceedings, retain pensions, and other benefits. This is a privilege not extended to politicians or public officials.
2. The Forum for Judicial Accountability (FJA) argued that investigations should continue post-resignation to reinforce public confidence in the judiciary and ensure accountability.

What was proposed by jurist Mohan Gopal regarding resignation and investigations?

1. Gopal argued that allowing a judge’s resignation to terminate an investigation undermines the purpose of accountability.
2. He emphasized the importance of completing investigations for transparency.

What are the broader implications of these issues?

1. The current framework disproportionately shields judges, enabling them to evade accountability.
2. Reforms are necessary to address gaps in judicial oversight, ensure public trust, and prevent misuse of resignation as a shield against accountability.

One Nation, One Election and Representative Democracy

Source: This post on One Nation, One Election and Representative Democracy has been created based on article “One Nation One Election and representative democracy”published in The Hindu on 30^th December 2024.

UPSC Syllabus topics- GS 2-Polity

Context: The article critically examines the proposal for One Nation, One Election (ONOE) as outlined in the Constitution (One Hundred and Twenty-Ninth Amendment) Bill, 2024, in the context of India’s representative democracy. The proposal aims to streamline elections for the LokSabha and State Legislative Assemblies to reduce administrative costs and election fatigue. One Nation One Election and Representative Democracy

What is the Constitution (One Hundred and Twenty-Ninth Amendment) Bill, 2024?

The Bill proposes simultaneous elections for the LokSabha and State/Union Territory Legislative Assemblies by introducing Article 82(A). Key points include:

1. Synchronising elections to align LokSabha and State Assemblies.
2. Fixing the LokSabha’s tenure, with mid-term elections only covering the remainder of the term if dissolved early.
3. Amendments to Articles 83, 172, and 327 to take effect after the 2029 elections, with implementation from 2034.
4. A separate Union Territories Laws (Amendment) Bill aligns the tenure of Union Territory Assemblies with this framework.

What are the goals of One Nation, One Election (ONOE)?

The proposal seeks administrative efficiency and reduction in election fatigue. However, it raises concerns about inclusivity and the representation of diverse voices in Indian democracy.

How does representative democracy function in India?

Representative democracy allows citizens to elect representatives who make decisions on their behalf. Key principles include:

1. Free and fair elections.
2. Political accountability.
3. Protection of minority rights alongside majority rule. This system balances governance stability with the accommodation of diverse interests, relying on periodic elections and institutional checks and balances.

What challenges does representative democracy face globally?

A 2024 study highlights increasing disillusionment:

1. Citizens in 24 nations, including India, expressed doubts about its effectiveness.
2. Alternatives like direct democracy, expert rule, or authoritarian regimes are being considered by some.
3. In several countries, support for military rule or strong leaders bypassing parliamentary checks indicates growing frustration with institutional inefficiencies.

What were Jayaprakash Narayan’s critiques of Indian parliamentary democracy?

Jayaprakash Narayan (JP) identified significant flaws in his 1959 work, A Plea for Reconstruction of Indian Polity:

1. Risks of minority governments: India’s multi-party system may lead to unstable or unrepresentative governments.
2. Demagoguery and populism: Political parties manipulate public opinion through half-truths and divisive rhetoric.
3. Centralisation of power: Parliamentary democracy concentrates power, weakening intermediary institutions.
4. High financial costs of elections: Excessive costs tether democracy to moneyed interests. While critical, JP’s intent was to reform and strengthen democracy. His insights remain relevant in the ONOE debate.

Has the ONOE proposal adhered to democratic principles?

Critics argue the process lacked inclusivity and transparency, violating the Pre-Legislative Consultation Policy, 2014:

1. Inadequate consultation period: Citizens were given only 10 days to respond to a public notice issued in January 2024.
2. Lack of explanatory material: No background papers or detailed notes were provided.
3. Framing of questions: The ‘yes/no’ format appeared perfunctory, suggesting a pre-decided agenda.

These procedural flaws risk alienating citizens and undermining trust in the reform process.

What are the potential implications of ONOE for representative democracy?

1. Centralisation vs. federalism: Synchronising elections may centralise power, overshadowing state-specific issues with national narratives.
2. Inclusivity and participation: Rushed reforms risk sidelining citizen voices and weakening democratic inclusivity.
3. Electoral accountability: Frequent elections enable regular evaluation of governments. Simultaneous elections might dilute this accountability.

What is essential for preserving democracy in the context of ONOE?

India’s democracy thrives on citizen participation, inclusivity, and accountability. While efficiency is important, reforms like ONOE must:

1. Reflect diverse perspectives.
2. Foster consensus through meaningful public engagement.
3. Avoid centralisation and rushed processes to maintain trust in democratic governance.

This ensures that Indian democracy remains representative in both letter and spirit.

Build Dormitory Housing for India’s Industrial Workers

Source: The post Build Dormitory Housing for India’s Industrial Workers has been created, based on the article “Housing industrial workers: It is crucial for success in manufacturing” published in “Business Standard” on 30th December 2024

UPSC Syllabus Topic: GS Paper2- Governance-Welfare schemes for vulnerable sections of the population by the Centre and States

Context: The article discusses plans announced by Union Finance Minister Nirmala Sitharaman to build dormitory-style housing for industrial workers. This housing will be developed in partnership with the private sector and supported by government funding to improve living conditions and support the growth of manufacturing in India. Build Dormitory Housing for India’s Industrial Workers

For detailed information on Importance of providing housing for factory workers read this article here

What is the New Housing Plan for Industrial Workers?

1. Union Finance Minister Nirmala Sitharaman announced a new plan in the July Budget to build rental housing for industrial workers.
2. These will be dormitory-type accommodations developed through a public-private partnership (PPP) model, supported by viability gap funding (VGF) to make construction financially feasible.

Why is This Plan Necessary?

1. The manufacturing sector in India relies on a large workforce, often requiring workers to migrate from different areas.
2. Current housing for these workers is informal, scarce, and often in poor condition, which discourages migration, especially among women, and affects manufacturing productivity.

What Challenges Exist in Developing Industrial Housing?

1. Private sector efforts to build housing near industrial areas are restricted by strict zoning laws, complicated building approval processes, and high operating costs.
2. Existing rules limit how buildings can use space, which results in inefficient land use and discourages investment.

How Does the Report Suggest Improving the Situation?

1. A report from NITI Aayog suggests treating worker housing as essential infrastructure.
2. It recommends government support such as tax relief, interest subventions to lower borrowing costs, and relaxed building regulations to allow more efficient use of land.

Conclusion

Improving housing for industrial workers is crucial for boosting India’s manufacturing sector. Adequate housing ensures a stable and healthy workforce, which supports large-scale manufacturing and job creation.

Question for practice:

Discuss the key elements and expected benefits of the new dormitory-style housing plan for industrial workers announced by Union Finance Minister Nirmala Sitharaman.

How India Maintains Peace Amid Global Turmoil

Source: The post How India Maintains Peace Amid Global Turmoil has been created, based on the article “Why we’re lucky to be Indians in such a terrible world” published in “Live mint” on 30th December 2024

UPSC Syllabus Topic: GS Paper2- Governance-Important aspects of governance and International Relations

Context: The article discusses how despite global turmoil and internal issues like corruption and poor governance, India has managed to maintain relative peace. How India Maintains Peace Amid Global Turmoil, It contrasts India’s situation with violent regions globally and examines factors like the Indian populace’s general disinterest in violent extremism and effective suppression of violence by security forces.

What is the Current Global Situation?

1. Global Conflicts: The article mentions ongoing devastating wars in Ukraine and the Levant, showcasing regions engulfed in violence and political turmoil.
2. Economic Collapse: It highlights the economic breakdowns in Sri Lanka and Afghanistan, which have faced severe financial distress.
3. Regional Unrest: Bangladesh is also experiencing upheaval, adding to the list of countries with significant internal conflicts.
4. Comparative Stability: Against this backdrop of global instability, the sentiment among Indians that they are fortunate to live in a relatively stable country stands out, as India does not face such extreme crises.

Are Indians Really Better Off?

1. India’s stability seems greater compared to the economic collapse in Sri Lanka and Afghanistan.
2. Comparing Lebanon’s orderly evacuation to chaotic Bengaluru traffic questions if Indians are truly better off.
3. India’s issues with bad air and dirty water kill more people than wars in some regions.
4. Despite visible poverty and rubble in places like Gurgaon, India provides a shot at a peaceful life.

Why Has India Maintained Relative Peace?

1. Low Extremism Involvement: Proportionately, few Indian Muslims have engaged in acts of terror. A 2015 intelligence report highlighted that the Islamic State found Indian recruits underwhelming and unsuitable for roles like suicide bombers.
2. Political Dismissals: The assassination of former Prime Minister Rajiv Gandhi by the LTTE led to a significant political backlash in Tamil Nadu, showing a domestic intolerance for extremism linked to political violence.
3. Effective Security Measures: Indian security forces have been quick to suppress violent uprisings, often disregarding the human rights of the poor, thus preventing sustained violence.

Question for practice:

Examine how India’s relative peace amidst global turmoil and internal challenges is maintained according to the article.

GS PAPER - 3

Need of Cyclone prediction in India

Source: This post onNeed of Cyclone prediction in Indiahas been created based on article “Why better prediction of cyclone intensity, heavy rainfall is needed” published in The Hindu on 30^th December 2024.

UPSC Syllabus topics: GS 3- Disaster Management

Context: The article underscores the urgent need for improving the prediction of tropical cyclone intensity and associated heavy rainfall, emphasizing the profound societal and environmental consequences of these phenomena. Tropical cyclones, although infrequent in the North Indian Ocean basin compared to other regions, pose a significant threat to densely populated coastal areas, as exemplified by past events like the Bhola cyclone of 1970. Need of Cyclone prediction in India

Why is better prediction of cyclone intensity and heavy rainfall important?

1. Tropical cyclones are among the most devastating natural disasters, causing widespread destruction and loss of life.
2. Despite having fewer cyclones compared to other regions, the North Indian Ocean basin is highly vulnerable due to its densely populated coastal areas.
3. The Bhola cyclone of 1970 serves as a grim reminder of the catastrophic potential of such events.
4. Observations show shifts in cyclone patterns, intensity, and frequency, highlighting the need for improved forecasting and adaptive measures.

What are the trends in tropical cyclone activity in the North Indian Ocean?

1. Bay of Bengal vs. Arabian Sea: The Bay of Bengal experiences more cyclones than the Arabian Sea. However, the Arabian Sea has seen a 52% increase in cyclonic storms and a threefold rise in the duration of very severe cyclonic storms in recent years.
2. Intensification: There is an increased likelihood of cyclonic storms intensifying into severe cyclonic storms. Satellite-era data indicates a rising trend in accumulated cyclone energy over the North Indian Ocean.
3. Environmental Drivers: Rising ocean heat content and decreasing vertical wind shear contribute to these trends.

How might climate change impact tropical cyclones in the future?

1. Anthropogenic Climate Change:
   1. Likely to result in more powerful cyclones.
   2. Tropical cyclone precipitation rates are projected to increase due to higher atmospheric moisture levels.
2. Key Changes:
   1. Higher frequency of rapid intensification events.
   2. Poleward migration of the latitude of maximum intensity.
   3. Slower forward movement of tropical cyclones.

What made Cyclone Fengal unique and challenging?

1. Trajectory and Impact:

1. Cyclone Fengal followed an unusual path, making landfall near Puducherry on November 30, 2024.
2. It stalled upon reaching the coast, maintaining intensity until December 1 due to a balanced steering flow and moisture from saturated soils.

1. Rainfall:
   1. Unprecedented rainfall: Puducherry and Villupuram districts recorded 40-50 cm in a single day.
   2. Neighbouring districts like Cuddalore and Tiruvannamalai received over 20 cm in 24 hours.
   3. The deluge caused catastrophic agricultural losses and disrupted livelihoods.
2. Forecasting Challenges:
   1. IMD accurately predicted the landfall near Puducherry three days in advance.
   2. However, the cyclone’s northeastward movement on November 27 and its stalling near the coast were not accurately forecasted.

Why do weather prediction models struggle with heavy rainfall forecasting?

1. Fengal’s Case:
   1. None of the models predicted the exceptional 40+ cm rainfall totals in 24 hours.
   2. Challenges arose from limited observational data over oceans and the complex cloud dynamics within the cyclone.
2. Broader Issues:
   1. Forecasting rapid intensification and heavy rainfall during landfalls remains difficult.
   2. Advancements in modeling techniques and real-time data assimilation are crucial.

What actions are needed to improve cyclone forecasting?

1. Critical Areas for Research:
   1. Predicting rapid intensification.
   2. Forecasting heavy rainfall during landfall.
2. Investments:
   1. Sustained investments in advanced forecasting technologies and research.
   2. Addressing gaps in observational data and improving modeling capabilities.
3. Climate Models:
   1. IPCC projections indicate more intense cyclones with heavier rainfall and slower speeds, making research more urgent.

Why is improving cyclone predictions essential?

Despite progress, precise predictions of cyclone behavior remain a challenge. Enhanced forecasting can safeguard lives, livelihoods, and ecosystems from the devastating impacts of tropical cyclones, ensuring resilience in vulnerable regions.

Restoring Constitutional Order in Manipur

Source: This post on Restoring Constitutional Order in Manipurhas been created based on article “Restoring constitutional order in Manipur” published in The Hindu on 30^th December 2024.

UPSC Syllabus topics: GS 3- Internal security

Context: The article addresses the ongoing ethnic violence in Manipur, India, and the response or lack thereof from key institutional actors, particularly the judiciary and executive branches. The article critiques the Supreme Court’s inconsistent and episodic interventions in addressing the crisis, emphasizing the need for sustained judicial oversight and comprehensive measures to restore constitutional order and rebuild public trust. Restoring Constitutional Order in Manipur

What has led to the Supreme Court’s intervention in Manipur?

1. The ethnic violence in Manipur and the executive’s failure to act decisively have forced the judiciary to step in.
2. However, the Supreme Court’s response has been sporadic and often ineffective in holding the executive accountable.
3. In 2024, the Supreme Court conducted only six hearings on the main batch of petitions concerning Manipur.
4. Despite escalating violence, it did not pass significant orders, with the only notable action on December 9 when it sought details on destroyed and encroached properties.

What unprecedented issues have emerged in Manipur since May 3, 2023?

1. Demographic and geographical separation: Enforced through a militarized buffer zone.
2. Surrender of state authority: Armed militant groups dominate law and order.
3. Illegal oaths:ArambaiTenggol administered hateful ethno-cultural oaths to legislators.

How has the Supreme Court addressed these issues?

1. While it responded to some incidents in 2023, such as the viral video of tribal women being assaulted, its actions in 2024 have been largely absent.
2. For example, trials for key cases like the sexual assault and parade of two tribal women are yet to begin, despite CBI filing chargesheets in October 2023.

What directions did the Supreme Court issue on August 7, 2023?

1. Relief and rehabilitation committee: Led by Justice Gita Mittal, comprising three retired judges.
2. Special Investigation Teams (SITs): Formation of 42 SITs across six groups, headed by a retired Director-General of Police and staffed by CBI officers.

Have these measures been effective?

1. The relief committee’s functioning has been largely mechanical.
2. SITs have filed chargesheets for only 6% (192 cases) of 3,023 registered cases by November 20, 2024.
3. Additionally, many IPS officers in SITs have sought repatriation, undermining the structure.

What steps should the Supreme Court take to restore trust and the rule of law?

1. Transfer trials outside Manipur: To ensure impartiality and fair proceedings.
2. Improve SIT transparency: Regular updates for petitioners and victims’ families.
3. Constitute a bipartisan High-Powered Commission:
   1. Include eminent persons from both communities.
   2. Task it with investigating and reporting directly to a Special Bench of the Supreme Court.
4. Special Bench for Manipur cases: Handle cases related to ethnic violence exclusively.

Why are these measures critical?

1. The lack of effective judicial action and governance has deepened feelings of neglect and eroded trust in the rule of law.
2. These steps can provide Manipur with a much-needed healing touch and restore constitutional order.

India’s Economic Slowdown and Its Future Outlook

Source: The post India’s Economic Slowdown and Its Future Outlook has been created, based on the article “2025: The new normal” published in “Business Standard” on 30th December 2024

UPSC Syllabus Topic: GS Paper3- Economy-Indian Economy and issues relating to planning, mobilisation, of resources, growth, development and employment.

Context: The article discusses India’s current economic growth, which has slowed down recently due to various factors such as government policies and global uncertainties. Despite high growth in previous years, future economic improvement remains uncertain, impacting investment, particularly in smaller companies. India’s Economic Slowdown and Its Future Outlook

For detailed information on India’s Economic Slowdown and Path to Recovery read this article here

What is the Current State of the Indian Economy?

1. The Indian economy is experiencing moderate growth, with a slowdown in recent quarters.
2. After achieving an 8.2% GDP growth in FY24, it decreased to 6.6% in Q1 of FY25 and further to 5.4% in Q2.
3. The growth rate is now described as the “new Hindu rate of growth” at around 5.5%.

Why is the Economy Slowing Down?

1. Restrictive Monetary Policies: The Reserve Bank of India has implemented policies that limit growth.
2. Reduced Government Spending: Due to elections, government capital expenditures have decreased.
3. Private Sector Slowdown: Domestic political issues, global uncertainties, and fears of economic dumping have slowed private investments.

How are Government Expenditures Impacting Growth?

1. Government spending has been a major driver of growth, with infrastructure projects significantly boosting economic activity.
2. However, government capital expenditure (capex) has declined by 6.6% from April to October of FY25. This reduction in spending is impacting the overall economic growth.

What is the Impact on Stock Markets?

Despite economic challenges, stock markets have seen significant gains:

1. The S&P BSE Smallcap Index rose by 47.52% in 2023 and 29% in 2024.
2. The Nifty MicroCap 250 Index increased by 66.44% in 2023 and 34.35% in 2024.
3. The Nifty 50 had smaller gains, rising by 20% in 2023 and 9.58% in 2024.

What is the Future Outlook?

The economy’s future remains uncertain, with modest growth expected to continue. High previous returns in the stock market, particularly among small-cap and microcap companies, may not be sustainable if economic growth remains subdued. The overall economic indicators suggest a potential prolonged slowdown, mirroring the period from 2014 to 2019.

Question for practice:

Discuss how the reduction in government capital expenditures is impacting India’s economic growth according to the article.

How India Can Overcome the Middle-Income Trap

Source: The post How India Can Overcome the Middle-Income Trap has been created, based on the article “Dodging a middle-income trap may take extra-economic efforts” published in “Live mint” on 30th December 2024

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

Context: The article discusses how India should adopt new economic policies and attitudes to avoid the middle-income trap and enhance growth. It emphasizes the need for increased investment, innovation, and structural reforms. It also critiques adopting Western socioeconomic narratives unsuitable for India’s economic context. How India Can Overcome the Middle-Income Trap

For detailed information on Can India escape middle- income trap? read this article here

What is the view of the World Bank’s chief economist on Indian Economy?

1. Indermit Gill, the World Bank’s chief economist, argues that India might take 75 years to reach a quarter of the United States’ per capita GDP, while China could achieve this in just 10 years.
2. He suggests that India needs new approaches and structural reforms to avoid the “middle income trap,” where growth slows as a country reaches a moderate level of income.

What Challenges Do Middle-Income Countries Face?

Middle-income countries, including India, face several challenges:

1. Growth Plateau: Countries in the middle-income range ($1,100 to $13,000 per annum) often experience a slowdown in growth, a phenomenon known as the middle-income trap.
2. Investment and Innovation: Effective growth requires significant investment in physical and human capital, and incentives for innovation. However, these are often insufficient.
3. Institutional Effectiveness: Structural reforms need strong institutions, but political and social limitations can hinder these changes.
4. Social and Political Resistance: For example, India’s attempt to reform farm laws failed due to lack of political support and public trust.

How Can India Overcome These Challenges?

1. Building Social Capital: Strengthening trust in government and social mechanisms to facilitate acceptance and support for policy reforms.
2. Adopting Suitable Policies: Avoiding unaffordable Western socioeconomic policies such as high taxes on the ‘rich’ and universal basic income, focusing instead on policies suited to India’s economic realities.
3. Increasing Productivity: Encouraging hard work and faster learning to improve labor productivity, which is notably lower than that in the US, China, Brazil, and South Africa.
4. Promoting Innovation and Structural Reforms: Invest in physical and human capital, provide incentives for innovation, and strengthen institutions to carry out necessary reforms effectively to foster growth and avoid the middle-income trap.
5. Adapting to Global Economic Shifts: Learn from global leaders like China in sectors such as electric vehicles, where creating new engines of growth in fast-changing technologies can offer substantial rewards.

For detailed information on Strategies to escape the middle-income trap read this article here

Question for practice:

Examine how India can adopt new economic policies to effectively avoid the middle-income trap and accelerate growth.

Prelims Oriented Articles (Factly)

Srisailam Temple

News: The Archaeological Survey of India has discovered several copper plates and other ancient inscriptions at the Srisailam Temple, Andhra Pradesh. 

About Srisailam Temple 

• Location:
  • It is located on the top of Nallamala Hills in Andhra Pradesh. 
  • It lies on the bank of the river Krishna. 
• History: 
  • The inscriptional evidence date back the temple to 2nd century BCE, during the reign of the Satavahana King 
  • It has received patronage from various dynasties like Chalukyas, Kakatiyas, Vijayanagara Empire, Qutb Shahis. 
• Religious Significance:   
  • The temple is dedicated to Lord Shiva, who is worshipped as Mallikarjuna Swamy and is represented by the lingam. While Goddess Parvati is worshipped as Brahamaramba Devi. 
    • Thus, the temple is also known as Sri Brahamaramba Mallikarjuna Swamy Temple.  
  • It is sacred to devotees of both Shaivism and Shaktism as it houses one of the 12 Jyotirlingas of Lord Shiva and is one of the 18 Shakti Peethas. 
• Architecture:
  • It is built in the Dravidian style, featuring lofty towers and sprawling courtyards.  
  • The temple houses many halls, the most notable being the Mukha Mandapa built during the Vijayanagar period. 

Household Consumption Expenditure Survey 2023-24

News: The second survey of Household Consumption Expenditure Survey, conducted during August 2023 to July 2024, has been released by the Ministry of Statistics and Programme Implementation. 

Key Findings of the Survey 

• Average Monthly Per Capita Consumption Expenditure: The MPCE is estimated to be Rs. 4,122 in rural areas and Rs. 6,996 in urban areas.  
• Rural-Urban Gap: The gap narrowed to 71% in 2022-23 from 84% in 2011-12, highlighting increased consumption in rural areas. 
• Consumption Pattern: Non-food iteams dominate the household’s average monthly expenditure, with rural and urban areas contributing 53% and 60% respectively. 
  • Rent accounts for about 7% of urban household’s non-food expenditure. 
  • In food iteams, beverages, refreshments and processed foods constituted major expenditure in rural and urban areas. 
• Consumption Inequality: Gini coefficient has declined for both rural and urban areas, indicating a reduction in consumption inequality. 
• State and Union Territory wise MPCE:  
  • States: MPCE is highest in Sikkim, and it is lowest in Chhattisgarh. 
  • UT’s: MPCE is highest in Chandigarh, and it is lowest in Dadra and Nagar Haveli and Daman and Diu and Jammu and Kashmir in rural and urban areas respectively. 

Prepaid Payment Instruments

News: Recently, Reserve Bank of India (RBI) has permitted the Prepaid Payment Instrument holders to make and receive UPI payments through the third-party mobile application. 

About Prepaid Payment Instruments (PPIs) 

• They are financial tools that help facilitate the purchase of goods and services, including financial services, remittances and fund transfer, among others, against the value stored in them. 
• Examples: Mobile Wallets (semi-closed system PPIs), Gift Cards (closed system PPIs), Debit or Credit Cards (open system PPIs). 
• Issuance: They can be issued as cards or wallets by banks and non-banks after obtaining necessary approvals from the RBI. 
• Types: They are of two types– Small PPIs and Full KYC (Know Your Customer) PPIs. 
  • Small PPIs: They are issued by the banks and non-banks after obtaining minimum details of the PPI holder. They can be used for purchase of goods and services from certain merchant locations, but fund transfer or cash withdrawal is not permitted. 
    • Small PPIs are divided into two categories: PPIs up to Rs 10,000 (with cash loading facility) and PPIs up to Rs 10,000 (without cash loading facility).  
  • Full-KYC PPIs: They are issued by the banks and non-banks after completing the KYC of PPI holder. They can be used for purchase of goods and services, funds transfer or cash withdrawal. 

Closed System PPIs  Cash cannot be withdrawn from these PPIs.  Cannot be used for payments for third party services.  Not classified as a payment system  Eg: Gift cards, paper vouchers etc.  Semi- Closed System PPIs  Can be used for online transactions at multiple merchants or partners.  Issuance requires prior approval or authorisation from the RBI.  Eg: Mobile wallets like (PhonePe, GPay), payment gateways (like Razorpay and Instamojo)  Open system PPIs  Can be used to buy goods and services.  Accepted both online and offline and can be used for making international purchases.  Eg: Debit and credit cards

India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA)

News: The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has reached its two-year milestone. It highlights significant achievement in strengthening bilateral trade ties and promoting mutual growth.

About Ind-Aus ECTA

• It was signed on April 2, 2022 and came into force in December 2022.
• Aim– To provide an institutional mechanism to encourage and improve trade between India-Australia.
• Key Features of the ECTA:
  • Tariff Reduction: Australia has removed tariffs on 96% of Indian goods, while India has extended concessions on coal, wine, and agricultural products to Australia.
  • Market Access: The agreement ensures mutual market access in key sectors such as pharmaceuticals, education, healthcare, and information technology.
  • Enhanced Professional Mobility: Indian professionals in IT and healthcare benefit from improved opportunities to access the Australian market.
  • Rule of Origin: The agreement includes a rule of origin clause to prevent any unintended benefits to third-party nations.
    

    Recent Trends: Trade Growth: Bilateral merchandise trade surged from USD 12.2 billion in 2020-21 to USD 26 billion in 2022-23. Utilization Rates: In 2023, export utilization stood at 79%, while import utilization reached 84%. Moderation: Total trade amounted to USD 24 billion in 2023-24, with India’s exports recording a 14% growth.

     

Note– The ECTA serves as a cornerstone for the forthcoming Comprehensive Economic Cooperation Agreement (CECA). The Comprehensive Economic Cooperation Agreement is an extension of the ETCA, for which negotiations are undergoing between India and Australia.

Coringa Wildlife Sanctuary

News: The Wildlife Institute of India-Dehradun is preparing to execute India’s first Fishing Cat Collaring Project at Coringa Wildlife Sanctuary.

About Coringa Wildlife Sanctuary

• Location– It is part of the Godavari estuary, where the Coringa River merges with the Bay of Bengal in Andhra Pradesh’s Kakinada district.
  • Between this area and the sea ” Hope Island ” blocks the direct confluence of the sea and Godavari.
  • As a result, about 40% of the sanctuary is only sea-backwaters and the rest of the area is intermingled with creeks and gets inundated with tidal waters.
• Vegetation– It has extensive mangrove and dry deciduous tropical forest. It is the second largest stretch of mangrove forests in India.
• Flora– Mangrove plants like Rhizophora spp, Avicennia spp, Sonnertia spp, etc.
• Fauna– It is home to rare and endangered mammals like Smooth Indian otter, Fishing cat, Jackal, etc. Mangroves offer excellent habitat for birds like Black capped kingfisher, Brahminy kite, Sea gulls, Reef heron, Sand piper, etc.

About Fishing Cat

• The Fishing cat (Prionailurus viverrinus) is a medium-sized wild cat.
• It is a solitary and nocturnal predator, spending its days resting in dense vegetation and venturing out at night to hunt near water.
• It is known for its exceptional swimming abilities; this cat can cover long distances in water, often while chasing fish.
• Habitat: They primarily inhabit wetlands, including swamps, marshes, oxbow lakes, reed beds, tidal creeks, and mangrove forests.
• Distribution: They are predominantly found in Southeast Asia, ranging from Sri Lanka and parts of Pakistan to western India, southern China, Java, and Sumatra.
• Conservation status
  • IUCN: Vulnerable
  • CITES: Appendix II
  • Wildlife Protection Act 1972: Schedule I