Apr 29 2024

Context

The last decade has seen the emergence of numerous internet-based tech startups, often referred to as the children of the internet as these unicorns and consumer companies will not exist without the internet.

India’s Expanding User Base and Booming Data Centre Market

  • Expanding User Base: The consumer user base is rapidly expanding to access services from e-commerce, mobility, food delivery, home, edutech, finance, insurance, gaming, etc in addition to availing services from the government. 
  • Rising India’s Internet Economy: India is most likely to meet its target of $1 trillion by 2030.
    • India has over 850 million active internet users, and the digital economy will contribute about 20% to the GDP by 2026.
  • Growth Projections for India’s Data Centre Market: With the rise and expansion of cloud-based services, there has been an increasing investment in data centers.
    • According to an Arizton Advisory and Intelligence research report in 2022, the value of India’s data centre market is expected to increase from $4.35 billion in 2021 to $10.09 billion by 2027 at a compound annual growth rate (CAGR) of 15.07%.

NaaS (network as a service)

NaaS

  • About: NaaS is a cloud-like networking model where network resources are provided to the customer on demand. 
    • Network infrastructure is the basic framework of a network consisting of hardware and software resources that enable communication paths between users.  
  • Need of NaaS: With enterprises leveraging cloud services seamlessly and dynamically scaling their operations, there exists a gap in network infrastructure to meet the expectations of this evolving cloud ecosystem.
    • This gap has catalyzed the rise of NaaS (network as a service), offering software automation functionalities and intelligent network infrastructure in a flexible and on-demand manner akin to cloud services.

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Advantages of NaaS

  • Flexible Scaling Options: Similar to other “as-a-service” models (like SaaS, platform as a service or PaaS, etc.), NaaS offers networking functionality without the need for the customer to invest in hardware or manage the infrastructure directly. 
    • Through simple subscription and options like pay-as-you-go, organizations can scale their network infrastructure more flexibly and efficiently according to their needs. 
    • Presently, NaaS platforms offer improved network performance at exceptional speeds, delivering consumers a seamless and frictionless browsing experience while ensuring robust security measures.
  • Facilitating Instantaneous Connections across Various Network Nodes: It enables instantaneous connections in any combination between two or more public clouds, data centers, internet exchanges, and content delivery networks. 
    • This breaks away from the traditional telco approach of manually stitching each connection across weeks and even months at times. 
  • Scalable Networks for Dynamic Traffic Handling: It allows organizations to have scalable networks that can take care of sudden spikes in traffic or eliminate underutilisation.

Challenges with NaaS

  • Limitations of Hardware-based NaaS Solution: Currently, NaaS solutions are predominantly reliant on hardware, which comes with inherent limitations in terms of flexibility, agility, and cost-effectiveness. 
    • As businesses increasingly adopt hybrid and multi-cloud environments for enhanced security and control, the integration of a software layer atop the network infrastructure will enable optimal resource utilization.
  • Criticality of Network Performance: User satisfaction heavily relies on networks swiftly delivering their data
    • If a basic online search lags, a transaction loads slowly, or a video buffers even briefly, it results in user dissatisfaction and a subpar application experience.
    • A mere few seconds of delay, or worse, downtime, can result in significant business losses. 
    • Therefore, a software-defined networking platform providing secure and reliable network infrastructure presents a compelling use case for the banking, financial services, and insurance (BFSI) industry.
  • Inertia to Migrate:  As is the case with any innovation, the inertia to change from legacy solutions hinders its adoption. 
    • While network security and bandwidth-on-demand are lucrative features of NaaS, enterprises may be hesitant to migrate. 

Difference between NaaS, IaaS, and SaaS

Software as a service (SaaS) Infrastructure as a service (IaaS) Network as a service (NaaS) 
Software As A Service (SaaS) applies to any software application delivered via the cloud as a subscription-based offering. It is defined as the use of any IT hardware and software infrastructure components like compute power or storage utilized through the cloud in a flexible consumption or subscription-based model.  It is much more specific and relates directly only to networking functionality. 
SaaS spans across a variety of online applications utilized through the internet every day. Like SaaS, it’s an all-inclusive category that can span the entire IT infrastructure portfolio from compute to storage to networks. It refers to only networking hardware, software, and services delivered in a “cloud-like” motion, which implies subscription-based or consumption-based billing. 

 

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Context

According to recent data from the Reserve Bank of India, India’s net household savings have reached their lowest point in 47 years.

Gross Domestic Product(GDP): It is the market value of all the goods and services produced within the domestic territory of a country during a specified time period, usually one year.

On the fall in Household Savings

  • Reduction in Savings: Savings reduced to 5.3% of the gross domestic product (GDP) in the financial year 2023, down from 7.3% in 2022
  • Increase in Household Debt: There has also been a sharp increase in household debt in the same period. 
    • Annual borrowings stood at 5.8% of GDP – the second-highest level after the 1970s.
    • A significant portion of India’s increasing household debt is made up of non-mortgage loans. Farm and business loans comprise over half of these loans. 
  • Debt Service Ratio: Indian households have a debt service ratio of approximately 12%, similar to Nordic countries. 
  • This ratio is higher than that of China, France, the UK, and the US, all of which have higher household debt levels. 
    • The difference is due to higher interest rates and shorter loan tenures in India, resulting in a relatively higher DSR despite lower debt-to-income ratios.
    • DSR is the share of income used to service loans.

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What is Household Net Savings?

  • About: Household net savings are the total money and investments families have, like deposits, stocks and bonus, minus any money they owe, like loans and debt.
  • Components of Household Savings: There are two components of household savings: financial and physical.
    • Financial savings (or net financial savings): It is the difference between financial assets and liabilities.
      • Financial assets include bank deposits and investments in financial institutions, life insurance, PF, equity, mutual funds and small savings schemes.
      • Financial liabilities include loans from banks and NBFCs.
    • Physical savings: It includes investments in land, buildings and gold.
  • Reason behind Reduction in Savings: As households rely more on borrowing to sustain consumption, their savings naturally reduce. 
    • With increased borrowing, a larger portion of their income is allocated towards debt repayment, resulting in a reduction of savings.
    • Although borrowing for consumption purposes such as credit cards, consumer durables, weddings, and health emergencies accounts for less than 20% of total household debt, it represents the fastest-growing segment.
  • Shift from “Credit Widening” to “Credit Deepening: The primary driver of household debt growth over the past decade has been credit widening rather than Credit Deepening.
    • Credit widening is characterized by an expansion in the number of borrowers in contrast to credit deepening,” which involves each borrower taking out larger loans. 
    • Increasing the number of borrowers is considered more favorable than having individual borrowers take on larger loan amounts.

Macroeconomic Implications of Fall in Household Savings

  • Increased Vulnerability of Households due to Rising Debt Indicators: The rising trend in both the flow indicator of liabilities to disposable income and the stock indicator of debt to net worth renders households increasingly vulnerable.
  • Impact of Higher Interest Rates on Household Debt: The higher interest rate to counter inflation can increase debt levels and potentially push households into a debt trap. 
  • Impact on Consumption: The implications of high interest rates on debt burden can have an adverse impact on the consumption of the households and consequently on aggregate demand.
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Context

Ancient rocks that bear the oldest remnants of Earth’s early magnetic field were discovered in Greenland by the geologists at MIT and Oxford University.

Oldest evidence of Earth’s magnetic field in Greenland rocks

  • Study published in: The Journal of Geophysical Research.
  • Sample for the study: Rock formations in the Isua Supracrustal Belt in southwestern Greenland were sampled for the study.
    • The rock samples were of banded iron formations ie. a rock type that appears as stripes of iron-rich and silica-rich rock.
  • Objective: To  find rocks that still held signatures of the Earth’s magnetic field when they were  first formed.
  • Process used: Through the process of Remagnetisation, the researchers used uranium to lead ratio and found that some of the magnetized minerals were likely about 3.7 billion years old.
  • Findings: 
    • The rocks are determined to be about 3.7 billion years old and they retain signatures of a magnetic field with a strength of at least 15 microtesla.
      • Today, Earth’s magnetic field measures around 30 microtesla. 
    • Origin of the rock: The rocks could have been originally formed in primordial oceans prior to the rise in atmospheric oxygen around 2.5 billion years ago, given their composition.

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  • Significance: 
    • The discovery extends  the magnetic field’s lifetime by another 200 million years with the rocks  representing some of the earliest evidence of a magnetic field surrounding the Earth.
      • Previous studies have shown evidence for a magnetic field on Earth that is at least 3.5 billion years old.
    • Earth's magnetic fieldEarly evidence on the habitable nature of Earth: The discovery sheds light on how the Earth was able to foster life early in its evolution ie.  in part due to an early magnetic field that was strong enough to retain a life-sustaining atmosphere and simultaneously shield the planet from damaging solar radiation. 

What is Earth’s magnetic field?

  • It is also known as the geomagnetic field, is generated in the interior of the planet  and extends out into space, creating a region known as the magnetosphere.  
  • First discovered: British polar explorer James Clark Ross first identified the Magnetic North Pole on the Boothis Peninsula in Canada’s Nunavut territory in 1831.
  • Location: Magnetic poles are located where the magnetic lines of attraction enter Earth. The Magnetic North Pole is also known as the North Dip Pole and is currently located on Ellesmere Island in Northern Canada.
    • The Magnetic North Pole is about 310 miles (500 kilometers) away from the Geographic North Pole.
  • Features: 
    • Dipolar:  Magnetic field sources are dipolar, i.e. they have a north and south pole. In  magnets, opposite poles (N and S) attract while other poles (N and N, S and S) repel.
      • Therefore, the North Magnetic Pole which  lies close to the Geographic North Pole in essence is  a south magnetic pole.
    • Not fixed: Earth’s magnetic poles are not fixed and tend to wander over time. The  magnetic north pole has been moving  about 25 miles (40 kilometers) a year in a northwest direction since it was first identified, according to the Royal Museums Greenwich.
    • Magnetic Reversals:  Earth’s magnetic poles have also flipped whereby north becomes south and south becomes north. The phenomenon  occurs at irregular intervals every 200,000 years or so.
      • Earth’s most recent magnetic reversal occurred approximately 790,000 years ago.
    • Auroras: It is a feature of magnetosphere disturbances witnessed above Earth’s polar regions. 
      • The disturbances in Earth’s magnetic field funnel ions down towards Earth’s poles where they collide with atoms of oxygen and nitrogen in Earth’s atmosphere, creating dazzling aurora light shows. 
      • The phenomenon is known as the northern lights (aurora borealis) in the Northern Hemisphere and the southern lights (aurora australis) in the Southern Hemisphere. 

What causes Earth’s magnetic field?

The Magnetic Field is generated through a process named the geodynamo process. It has  the following characteristics:

  • The planet should  rotate  fast enough
  • The planets interior must have a fluid medium  
  • The interior fluid must have the ability to conduct electricity 
  • The core must have an internal source of energy that propels convection currents in the liquid interior. 

Process: 

  • Earth’s magnetic field is generated in a layer known as the outer core, deep inside Earth’s Interior.
  • Conversion of Energy: Here the convective energy from the slow-moving molten iron is converted to electrical and magnetic energy. 
  • Feedback Loop: The magnetic field then induces electric currents which in turn generate their own magnetic field which induces more electric currents, in a positive feedback loop.

Importance:  

Earth's magnetic field

  • Protected Atmospheric Layer: The magnetosphere protects us from harmful space weather such as solar wind without which, the solar wind would have eroded our atmosphere, devoiding our planet of the life-giving air we breathe. 
  • Harmful Radiation: The magnetosphere protects Earth from the effect of particle radiation emitted during coronal mass ejection (CME) events and also from cosmic rays (atom fragments raining down on Earth from deep space).
  • Van-allen belts: The magnetosphere repels harmful energy away from Earth and traps it in zones called the Van Allen radiation belts. These donut-shaped belts of radiation can swell when the sun’s activity increases. 
    • It  is a zone of energetic charged particles that are captured by and held around a planet by that planet’s magnetosphere
    • Earth has two such belts, and sometimes others may be temporarily created. 

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Magnetic Fields on Other Planets:

  • Planet with Magnetic field: Jupiter, Saturn, Uranus and Neptune all exhibit magnetic fields far stronger than Earth’s but the underlying mechanisms driving them are not yet completely understood. 
  • Planets without Magnetic Field: 
    • Mars: It does not have enough inner heat nor does it possess the liquid interior required to generate a magnetic field.
    • Venus: It does have  a liquid core but does not spin fast enough to generate a magnetic field. 

 

Also Read: Earth’s Geomagnetic Field

 

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Context

The US Secretary of State during his three-day visit to China spoke about the production and export of “synthetic opioid precursors”, specifically the drug fentanyl.

  • Fentanyl synthetic opioids are the leading killer of Americans between the ages of 18 and 49.
Opioid Menace in India:

  • According to the Ministry of Social Justice and Empowerment, the number of opioid users in India stood at 23 million in 2018 – a 600 per cent increase since 2004.
  • The number of cannabis users stood at 31 million in India
  • Heroin, pharmaceutical opioids, and opium were the most commonly-abused opioids in India.

About Opioids

They are a class of drugs that “derive from, or mimic, natural substances found in the opium poppy plant”. Some common opioids include oxycodone, morphine, codeine, heroin, and fentanyl.

  • Impacts: According to the US Drug Enforcement Administration (DEA, they are very addictive and have a range of effects, such as euphoria and pain relief.

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Fentanyl Synthetic Opioids

Fentanyl is a potent synthetic opioid drug approved by the Food and Drug Administration for use as an analgesic [for pain relief] and anesthetic

  • Impact: It is approximately 100 times more potent than morphine and 50 times more potent than heroin as an analgesic.” 
    • Overdoses can cause “stupor, changes in pupil size, clammy skin, cyanosis [blue skin], coma, and respiratory failure leading to death”.
  • Opioids have an instantaneous effect that gets off quickly, necessitating regular use. People who first start taking opioid-based prescription painkillers frequently develop addictions.

United States’ Opioid Epidemic

  • Reason: The US saw a spike in synthetic opioid-related deaths after 2013, largely due to the rapid proliferation of illicitly manufactured fentanyl, and fentanyl analogues like acetyl fentanyl and carfentanil. 
    • Fentanyl Synthetic OpioidsA US House Committee report found that inexpensive fentanyl is increasingly cut into other drugs, often without the buyers’ knowledge.
  • China’s Role in the Opioid Epidemic: The US has primarily blamed Mexico and China for the trafficking of fentanyl.
    • As per 2020 DEA intelligence report, fentanyl and fentanyl-related substances were trafficked from China through international mail and express consignment operations.
    • Several Chinese companies in Wuhan and Shanghai are involved in the manufacturing of chemicals used to create synthetic opioids (precursors). 
    • China-manufactured chemicals are shipped to Mexico for processing into pills and then sent to the US.
    • China subsidies fentanyl production through tax rebates to companies.

Efforts to Deal with Fentanyl Synthetic Opioids Crisis

  • Regulation of Fentanyl Production and Export: In 2019, China announced it would add fentanyl-related substances to a list of controlled narcotic drugs. 
  • US-China Cooperation: In November 2023, a bilateral Counternarcotics Working Group was announced to coordinate law enforcement actions and address the misuse of precursor chemicals, among other things.
  • FEND Off Fentanyl Law: The US recently enacted the FEND Off Fentanyl Bill into law to confront “illicit fentanyl traffickers in Mexico and the producers of precursor chemicals in China.

Challenges in dealing with the Fentanyl Synthetic Opioids Crisis

  • Fentanyl Production as Employment Source: Many provinces view fentanyl production as a means of providing employment opportunities. 
    • To evade law enforcement agencies, operations often slightly tweak the formulae of certain chemicals. 
  • Allegations Against US Pharmaceutical Companies in Opioid Crisis:  They have faced allegations of distributing powerful opioid prescriptions to patients, contributing to their addiction and the subsequent pursuit of stronger drugs.
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Context

Dengue fever is spreading across regions such as southern Europe and the United States as the planet is getting warmer. 

Dengue fever

  • Aedes is increasing risk of getting dengue by 2bn people 

About Dengue fever

This fever is a mosquito-borne tropical disease.

  • Transmission of disease: A bite from Infected Aedes can transmit dengue fever if the mosquito is carrying a flavivirus pathogen.
    • The Aedes species is a mosquito, such as Ae. aegypti or Ae. albopictus.
  • Its symptoms typically begin 3 to 14 days after infection.

Dengue fever

Statistics of Dengue fever

Dengue feveris common in tropical and subtropical regions due to various reasons

  • The climatic conditions of Tropical and subtropical regions are warm and humid.
  • Tropical and Subtropical regions are dense. 
  • Increase in Dengue fever Deaths: In 2000, approximately 20,000 people died from dengue, as reported by the World Health Organization (WHO).
    • Current Year Data: This year, the death toll is expected to reach at least 40,000, marking a significant rise in fatalities.
  • Contrast with Malaria:
    • In contrast, malaria deaths decreased by 30% between 2000 and 2022, according to WHO data.
  • Impact of Dengue fever on India 
    • 1950 and 1960: Dengue fever was concentrated in southeast Asian countries. 

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Year  Dengue  cases in India
2017 188,401 
2018 101,192 
2019,  157,315 
2021. 193,245
2022 110,473
      • It started prevailing worldwide in 1970 
      • In India, This disease spread by 2012–13. 
    • Decade Trend
      • Over the decades from 1951–60 to 2012–21, the number of favorable months for dengue transmission in India increased annually by 1.69%.
        • It  reached 5.6 months.
      • Dengue cases in India: Each year, dengue cases surpass lakhs cases in India. 
        • It causes tremendous pressure on the Indian healthcare system. 
          • During pandemic 2020, dengue incidence had decreased by 56-60%. 
          • Highest Dengue cases: Dengue cases were highest in 2021. 
            • Again in 2022, the case declined 

Factors Contributing to Dengue fever Spread

  • Climate Change and Mosquito Range:

    • Higher temperature sensitivity: Higher temperatures and humidity create favorable conditions for mosquito breeding.
      • Due to current climate trends, Aedes could spread to southern Europe and the United States.
  • Urbanization:

    • Favorable condition: Urbanization facilitates the spread of dengue as mosquitoes find more hosts in densely populated areas.
      • Dengue cases are increasing in previously unaffected regions like Bangladesh, India, California, southern Europe, and subtropical Africa.
  • Water Storage Practices:

    • Breeding in stagnant water: Aedes mosquitoes breed in stagnant water, which is commonly found in containers and water storage vessels.
    • Improper water storage practices, such as open containers and neglected water sources, create ideal breeding sites for mosquitoes, leading to higher dengue transmission rates.
  • Lack of Effective Vector Control:

    • Inadequate vector control: lack of  measures, such as mosquito surveillance and elimination programs, contribute to the continued spread of dengue.
    • Limited resources and infrastructure: lack of proper infrastructure and limited resources in some regions hinder efforts to effectively control mosquito populations and prevent dengue outbreaks.

Innovative Approaches to Dengue Control

  • Singapore’s Approach:
    • Singapore uses both traditional methods and innovative strategies like releasing mosquitoes infected with wolbachia bacteria.
      • Since 2016, Singapore has implemented a technologically advanced dengue program.
        • This method, combined with vaccine development, offers a promising alternative to traditional mosquito control.
  • Dengue feverVaccine in India: Currently, there is no approved vaccine in India. 
    • However, Initiatives are going on for “Dengusiil”. 
  • Impact of Wolbachia:
    • Trials in Colombia: These trials have shown a significant reduction in dengue cases where wolbachia-infected mosquitoes were released.
    • largest wolbachia-mosquito factory: Brazil is set to host the world’s largest wolbachia-mosquito factory.
      • This initiative will help other regions to combat dengue.

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Context

Recently, Indian Air Force’s MI 17 V5 helicopter was deployed to extinguish the raging forest fires in Nainital district, Uttarakhand.

Bambi Bucket

About Bambi Bucket 

  • It  was invented by Don Arney, a Canadian business, in 1982
  • It is a specialized aerial firefighting tool which has been in use since the 1980s.
  • The Bambi Bucket, also called a helicopter bucket or a heli-bucket, is a specialized lightweight collapsible container that releases water from underneath a helicopter to targeted areas.
  • The water is released by using a pilot-controlled valve.

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Key feature: 

  • It is available in a variety of sizes and models, with capacities ranging from 270 litres to more than 9,840 litres.
  • It can be quickly and easily filled
  • It can be filled from various sources, including lakes and swimming pools, which allows firefighters to swiftly refill it and return to the target area.
  • It can be stored within the helicopter until development. 
  • It discharges a solid column of water, “resulting in a more accurate and effective water dump, less evaporation on the descent, and greater impact force.
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Context

The ruling Party secured its first victory in the Lok Sabha elections as its candidate, Mukesh Dalal, was elected uncontested for the Surat constituency in Gujarat.

  • This followed the rejection of the nomination papers of the Congress candidates and the withdrawal of other nominees. Thus, Surat will not participate in the polls scheduled for May 7.

Provision for Declaring Candidate Elected Before Polling

  • Section 53 (3) of the Representation of the People Act(RPA), 1951: It deals with the procedure in uncontested elections
    • As per this, if the number of such candidates is less than the number of seats to be filled, the returning officer (RO) shall declare all such candidates to be elected. 
    • In this regard, the RO’s actions are governed by Section 33 of the Act which pertains to the presentation of nomination papers and requirements for a valid nomination.
  • Handbook for Returning Officers (Edition 2) issued by the Election Commission (EC): It states that “if in any constituency, there is only one contesting candidate, that candidate should be declared to have been duly elected immediately after the last hour for withdrawal of candidature. 
    • In that event, a poll is not necessary. Moreover, all those candidates, who are returned as uncontested and who have criminal antecedents, must publicise the details in the prescribed format as per timeline.

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Scope for Negative Voting in the Election System

  • NOTA (none of the above) option: The option of NOTA, introduced through the Supreme Court’s intervention, has been available on electronic voting machines (EVMs) since November 2013. 
    • The SC held that “Giving the right to a voter not to vote for any candidate while protecting his right of secrecy is extremely important in a democracy. Such an option gives the voter the right to express his disapproval of the kind of candidates being put up by the parties.” 
    • Exclusion of NOTA Votes from Calculation of Total Valid Votes: According to the Handbook for ROs, the NOTA votes are not to be taken into account for calculating the total valid votes polled for the return of the security deposit. 
    • Stand of EC: The EC’s stand has been that the person getting the largest number of votes in any constituency will still be declared the winner, regardless of the number of NOTA votes.
    • Approach in Local Bodies Elections: Concerning local bodies elections, particularly in Maharashtra, the approach differs. 
      • In a directive issued in November 2018, the Maharashtra State EC stated that NOTA would be treated as a fictional electoral candidate in urban local bodies’ polls.
      •  In instances where NOTA receives the highest number of votes, the Commission would arrange for a re-poll.
  • Rule 49-O under Conduct of Election Rules, 1961: It allows electors to decide not to vote through Rule 49-O. 
    • A remark to the effect that the elector has decided not to record his or her vote would have to be made in the “remarks column” against the entry relating to the elector in the Register of Voters by the presiding officer.
    • Then, the signature or thumb impression of the elector would have to be obtained against such a remark.

Difference between an Elector Exercising Rule 49-O and the NOTA Option

  • Compromise of Secrecy: In case of Rule 49-O, the likelihood of an elector compromising his or her secrecy is high, as there is a procedure to be followed manually at a polling booth. 
    • However, in the case of the NOTA, there is no such issue.

What are the developments post NOTA?

  • NOTA Outperforming Political Parties in Voting Numbers: There have been times when political parties have received fewer votes than NOTA. 
    • It accumulated over 1.29 crore votes in the State Assembly and Lok Sabha elections combined over the past five years.
  • Criticism for Ineffectiveness: Some activists and constitutional experts have been critical of NOTA, labelling it a “toothless tiger” with no bearing on the election outcome.
  • Supreme Court’s Response: The Supreme Court recently asked the EC to respond to a plea seeking fresh elections to constituencies where NOTA votes were in majority. 
    • SC earlier refused to direct the EC to hold fresh polls if the majority of the electorate exercised NOTA.
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Context

Recently, the US Trade Representative’s 2024 Special 301 Report has been released that has again included India in the ‘Priority Watch List’ of countries, along with China, Russia, Venezuela, Indonesia, Chile and Argentina.

US puts India on Priority Watch List

  • Over the years (including 2020 and 2021), India has been listed in this Report.
  • There has been progress under the US-India Trade Policy Forum in addressing issues with trademark infringement investigations and pre-grant opposition proceedings, but numerous long-standing concerns remain as per the US Trade Representative’s 2024 Special 301 Report. 

Reasons for placing India on Priority Watch List

  • For alleged problems related to Intellectual Property (IP) protection and enforcement.
    • Intellectual Property Rights (IPR): IPRs are the legal privileges granted to the inventor or creator to safeguard their intellectual work (in the arts, sciences, literature, etc.) for a specific period of time.
  • Maintenance of High Customs Duties: India maintains high customs duties directed to IP-intensive products such as information and communications technology (ICT) products, solar energy equipment, medical devices, pharmaceuticals, and capital goods.
  • Patent Issues: Threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act impact companies across different sectors. 
    • Also, patent applicants continue to confront long waiting periods to receive patent grants and excessive reporting requirements. Stakeholders continue to express concerns over vagueness in the interpretation of the Indian Patents Act.
  • Various Challenges: These include inadequate IP enforcement, including high rates of online piracy, an extensive trademark opposition backlog, and insufficient legal means to protect trade secrets. 

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India’s Stance

  • Strict Adherence to Laws: India has always maintained that its intellectual property laws were in strict adherence to the WTO’s Trade Related Intellectual Property Rights (TRIPS) Agreement and that it was not bound by any global rules to make changes in its laws.
    • Trade-Related Aspects of Intellectual Property Rights (TRIPS): TRIPS is an agreement under the WTO that establishes minimum standards for intellectual property protection across member countries. It covers various forms of intellectual property, including patents, copyrights, trademarks, and trade secrets.
  • No Threat: No action is threatened by the US against countries on the ‘priority watch list’, but if a country slips further and is categorized as a ‘priority country’, the US may impose ‘retaliatory’ measures.

About “Special 301” Report

  • An Annual Report: The USTR releases the Special 301 Report annually, highlighting the state of IP protection and enforcement regimes in various countries it trades with.
    • It is mandated by Section 182 of the US Trade Act of 1974.
  • Deals with: This annual review reflects the US Administration’s resolve to encourage and maintain enabling environments for innovation, including effective IP protection and enforcement, in markets worldwide, which benefit not only U.S. exporters but the domestic IP-intensive industries in those markets as well.
  • Classification: Based on this review, the U.S. Trade Representative determines which, if any, of these countries to identify as Priority Foreign Countries or place on the Priority Watch List or Watch List.
    • Priority Watch List: This list includes countries that face the most serious allegations of inadequate IP protection and enforcement. 
      • The USTR may initiate formal trade investigations or impose sanctions if they fail to demonstrate significant improvements.
    • Watch List: This list includes countries that the US believes merit bilateral attention to address underlying IP problems but are better than the “priority watch list” countries.
      • This year, Twenty trading partners are on the ‘watch list’.
      • These are Algeria, Barbados, Belarus, Bolivia, Brazil, Bulgaria, Canada, Colombia, Ecuador, Egypt, Guatemala, Mexico, Pakistan, Paraguay, Peru, Thailand, Trinidad and Tobago, Türkiye, Turkmenistan, and Vietnam.

Required Actions

  • Full Implementation of Norms: India still needs to fully implement the WIPO Internet Treaties and ensure that copyright statutory licences do not extend to interactive transmissions.
  • Collaboration: To combat such issues, there is a need for establishment of a Joint IP Commission with representatives from government, industry and academia.
  • Focus on Capacity Building: India needs to enhance its capacitive building capacity while taking help from the examples of other countries, such as the US-Mexico-Canada Agreement (USMCA), which includes provisions for technical assistance on IP enforcement.
  • Transparency: Both India and the US need to promote increased transparency in IP decision-making processes.
  • Establishment of Efficient Dispute Resolution Mechanisms: Time has come to establish a streamlined arbitration mechanism for resolving IP disputes between companies, similar to the IP arbitration provisions within the Singapore-India Comprehensive Economic Cooperation Agreement (CEPA).
Also Read: Patent and Patent Rules in India

 

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Context

The Election Commission of India (EC) invoked Sections 58(2) and 58A(2) of the Representation of People Act, 1951 (RPA) to annul the elections held on April 19 in 11 polling stations in Manipur and 8 polling stations in Arunachal Pradesh. 

Ensuring Fair Elections: Framework for Handling Polling Disruptions in India

  • Framework for Addressing Disruptions in the Polling Process: India’s election laws provide a framework for handling situations where the normal polling process is disrupted for any reason, including damage to EVMs, booth-capturing, natural disasters, or a candidate’s death. 
  • The provisions for repolls, adjournments, and the voiding of polls ensure that the democratic process remains fair, transparent, and uninterrupted.

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Various Disruptions in the Polling Process and Available Choices for the EC

Disruptions Definition as per RPA Available Choices
Intentional destruction, taking away of EVMs Under Section 58 of the RPA, the EC can declare the poll at a polling station to be void if:

  • an unauthorized person has unlawfully taken away any EVM
  • any EVM has been accidentally or intentionally destroyed, or lost, or damaged, or tampered with
  • a mechanical failure develops in any EVM during the recording of votes.
  • The Returning Officer (RO) immediately informs the EC and the Chief Electoral Officer of the state about the relevant facts and material circumstances, after considering which, the EC can declare the poll void and formally fix the date and time for a new poll.
  • The contesting candidates or their election agents are then informed, in writing. 
  • A notice is also posted in public places along with an announcement by the beat of the drum in the polling area to inform the voters. 
  • All electors will be allowed to vote at the fresh poll. 
  • During the repoll, the voters’ left middle fingers are inked to distinguish between the mark made during the original poll (on their left forefinger).
Booth capturing Booth-capturing, defined in Section135A of the RPA, includes:

  • seizure of a polling station, affecting the conduct of elections;
  • taking possession of a polling station, allowing only his or their supporters to vote;
  • intimidating or threatening any elector and preventing him from going to the polling station
  • seizure of a counting place affecting the counting of votes
  • involvement of any person in government service in any of the above activities.

Booth capturing is punishable for a term of not less than one year, which may extend to three years for lay people, and not less than three years, extending to five years for government servants.

  • Under Section 58A, in case booth capturing has taken place at a polling Station, the Presiding Officer of a polling station immediately closes the Control Unit of EVM and detaches the Ballot Unit(s) from the Control Unit under Rule 49X of the Conduct of Election Rules, 1961.
  • He then informs the RO, who reports the full facts to the EC through the fastest means of communication. 
  • The EC, based on the material facts, may
  • declare the poll at that polling station to be void and direct a fresh poll on a new date.
  • countermand the election in the constituency in case booth capturing has taken place in a large number of polling stations, or if it has affected the counting of votes.
Natural disasters, other disruptions to polling The Presiding Officer of a polling station can adjourn the poll under section 57(1) of the RPA in case of:

  • a natural calamity like a flood, a severe storm.
  • non-receipt or loss or damage to essential polling materials like EVM, electoral roll etc;
  • interruption or obstruction due to any riot or, open violence;
  • non-arrival of the polling party due to obstruction or any other serious difficulty.
  • non-commencement of the poll within two hours from the scheduled time due to malfunctioning of EVM, or any other reason.
After seeking the EC’s approval on the date and hours, the adjourned poll will recommence from the stage at which it was left immediately before the adjournment. 

  • Contesting candidates or their agents are informed, and only electors who have not already voted before the poll was adjourned are permitted to vote.
Death of a candidate If the candidate with a valid nomination dies at any time after 11.00 a.m. on the last date for making nominations, until the commencement of the poll.  As per Section 52 of RPA, amended in 1996, the poll shall be adjourned only in case of the death of a recognised political party’s candidate

  • The RO reports the fact to the EC and orders the adjournment of the poll to a date to be notified later by the EC.
  • The EC then calls upon the concerned political party to nominate another candidate.

India’s Election Law Framework: Representation of the People Act (RPA) 1951

It provides for the conduct of elections to the houses of parliament and the legislatures of each state, corrupt practices, and other offenses taking place at or in connection with the elections.

  • Important Provisions of the Representation of the People Act, 1951:
    • Regulates the actual conduct of elections and by-elections.
    • Provides administrative machinery for conducting elections.
    • Deals with the registration of political parties.
    • Specifies the qualifications and disqualifications for membership of the Houses.
    • Provides provisions to curb corrupt practices and other offences.
    • Lays down the procedure for settling doubts and disputes arising out of elections

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Differences Between RPA 1950 and RPA 1951:

RPA, 1950 RPA, 1951
The allocation of seats in, and the delimitation of constituencies for the purpose of election to the Lok Sabha and the Legislatures of States; Methodology for the conduct of elections of the Houses of Parliament and to the Lok Sabha and the Legislature of each State;
Qualification of voters at such elections. Qualifications and disqualifications for membership of those Houses.
Methodology of preparation of electoral rolls Corrupt practices and other offences at or in connection with such elections.
Manner of filling seats in the Council of States Decision on doubts and disputes arising out of or in connection with elections.

 

Also Read: EVM VVPAT Verification Case

 

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Context

Recently, the Reserve Bank of India’s (RBI’s) latest Monetary Policy Report (included in its April Bulletin) has given primacy to “extreme weather events” and “climate shocks”.

Relevance For Prelims: Reserve Bank Of India (RBI), India’s Banking Sector And Monetary Policy, Monetary Policy, Vision India@2047, and  India’s Path To A Greener Future In The Globalization Age.

Relevance For Mains: Towards a Green Growth: Reserve Bank of India’s (RBI’s) Role and India’s Green Taxonomy. 

Reserve Bank of India’s (RBI’s) Path to Green Economy: Sustainable Investment and Net Zero Goals

Beginning with its July 2022 discussion paper on ‘climate risk and sustainable finance’, the RBI has made incremental progress to address the transition to a green economy.

The European Central Bank has aided the formulation of a green taxonomy for the entire Eurozone’s economic value chain. 

  • The EU green taxonomy is a complex system to classify which parts of the economy may be marketed as sustainable investments. It includes economic activities, as well as detailed environmental criteria that each economic activity must meet to earn a green label. 

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Crucial Insights of the Reserve Bank of India’s (RBI’s) latest Monetary Policy Report

  • Climate & Economic Stability: The “extreme weather events” and “climate shocks” are affecting not only food inflation but also likely having a broader impact on the natural rate of interest, thereby influencing the economy’s financial stability. 
Monetary Policy:

  • It is the macroeconomic policy laid down by the Central Bank (RBI), involving management of money supply and interest rate.
    • The report said global average temperatures are rising, with an accompanying increase in extreme weather events, and the economic and social impact is becoming increasingly evident.
    • The report warns that ‘if inflation hysteria gets entrenched, it may lead to a de-anchoring of inflation expectations, and the undermining of the RBI’s credibility would warrant higher interest rates to curb inflation, leading to greater output loss’.
  • Maximum Economic Output: Natural, or neutral, rate of interest refers to the central bank’s monetary policy lever allowing it to maintain maximum economic output, while keeping a check on inflation. 
The natural rate refers to the short-term real interest rate that would prevail in the absence of business cycle shocks, with output at potential, saving equating investment and stable inflation. 
    • The report warns that the “long-term (economic) output” could be lower by around 9% by 2050 in the absence of any climate mitigation policies. 
  • New-Keynesian Model: The report mentions a “New-Keynesian model that incorporates a physical climate risk damage function” being used to estimate the “counterfactual macroeconomic impact of climate change vis-à-vis a no climate change scenario”. 

About Green Taxonomy

Green Taxonomy

Green Taxonomy is defined as a framework to assess the sustainability credentials and possible ranking of an economic activity. 

  • Need: In recent decades, the challenges of a rapidly warming planet and other aspects of environmental degradation have motivated a call for all actors in society, including the financial sector, to take responsibility for environmental sustainability. 
  • Aim: To help financial actors and others determine which investments can be labeled “green” for their jurisdiction. 
  • Significance: The support for making informed decisions on environmentally friendly investments can encourage the undertaking of projects and activities that help scale up environmentally sustainable economic development and contribute to specific environmental objectives. 

Principles of a Green Taxonomy: The World Bank Group recommends the principles and methodology for developing a taxonomy of environmentally sustainable activities. 

  • Multipronged Impact: A green taxonomy should be developed in a way that has a multipronged impact on green finance. 
  • Environmental Objectives: The green taxonomy should focus on India’s most pressing environmental challenges – climate change mitigation and adaptation, pollution prevention and control, resource efficiency, conservation of natural resources, and ecosystem/biodiversity conservation. 
    • These are serious challenges in sectors such as energy, manufacturing, transport, agriculture, waste, and buildings. The green taxonomy may thus focus on these sectors to maximise the positive environmental outcomes expected to be generated from it.
    • In India, as opposed to quantitative technical screening criteria, there is a need to include a pre-specified set of sustainable agricultural and livestock farming practices.
  • Standard Criteria: The green taxonomy must be anchored in Nationally Determined Contributions, key national plans and policies for environmental action, and national norms and standards.
    • The Indian green taxonomy must rely on pollution standards set by the Central Pollution Control Board (CPCB) under the Ministry of Environment, Forests & Climate Change (MOEF&CC), water consumption norms set by the MOEF&CC and Ministry of Jal Shakti, and the Environmental Impact Assessment (EIA) protocol defined by the MOEF&CC. 
    • The monetary valuation of ecosystem services may also be used for assessing ecosystem and biodiversity losses.
  • Innovative: Such green taxonomy provides the freedom to choose between alternative pathways to green transition and prevents it from being redundant amidst technological innovations.
    • India must use the latest climate science for its technical screening criteria relating to GHG emission thresholds. The criteria should be consistent with 1.5°C rather than 2°C.
    • India must establish its own screening criteria for determining eligibility for green finance. 
  • Green Taxonomy In Harmony with International Standards: Existing Indian standards may be revised to be at par with international benchmarks within the scope provided by domestic circumstances. 
  • Alignment of Tracking of Green Finance & Disclosure Norms: There is a need for tracking climate/green finance through transparent and well-defined disclosures and reporting.
    • Regulators such as the RBI and Securities and Exchange Board of India (SEBI) should mandate financial market participants to delineate the environmental goals met.
    • The Ministry of Corporate Affairs must mandate companies to enlist the environmental objectives achieved by economic activities.
  • Regular Reviews & Updates: There is a need for timely updates to incorporate changes in development levels, technology, policy, standards and environmental conditions. 

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Actions Suggested to Define the Contents of a Green Taxonomy

Green Taxonomy

Need for a Well-defined Green Taxonomy

  • Information: Reduce the incidence of information asymmetry.
  • Interpretations: Rule out plural interpretations of green finance.
  • Risk Minimisation: Minimise the risk of greenwashing.
  • Transparent Understanding: Provide a transparent understanding of the environmental footprint of economic activities underlying investments.
  • Investors-Friendly: Provide the guidance and confidence sought by investors in making environmentally conscious investment decisions.
  • Visibility: Provide visibility to capital-starved green sectors, allowing them to attract requisite investments away from renewable energy (which currently accounts for 80% of green finance in India).
  • Management & Monitoring: It can be the standard for Financial Institutions (FIs) and companies in managing and monitoring the environmental quotient of their financial profile while allowing regulators like SEBI and RBI to oversee these entities by mandating disclosures that align with the taxonomy.
  • Standardisation: It can facilitate standardisation of data collection, reporting, and impact measurement methodology involved in the construction of Environmental, Social & Governance (ESG) indices. 
  • Tracking Measurement: It can also be the government’s barometer for tracking the compatibility of environmental outcomes with the vision of global net-zero, while showing the way to appropriate corrections in the case of deviations.

RBI’s Efforts Towards Green Economy

  • RBI’s Approach: The RBI has made incremental progress to address the transition to a green economy since its July 2022 discussion paper on climate risk and sustainable finance.
  • Green Methods: The RBI has issued ₹16,000 crore worth of Sovereign Green Bonds and expanded the resource pool by allowing Foreign Institutional Investors to participate in future green government securities.Actions that need to be Taken: 
    • Layer Green Taxonomy: The RBI and the Finance Ministry could take inspiration from the developing world, especially the ASEAN region, where a layered green taxonomy as a living document keeps getting updated with sectoral views of possible sustainable trajectories. 
    • Comprehensive Assessment: The RBI must undertake a thorough-going assessment on the quantitative and qualitative impact on economic and financial stability due to climate change. 
    • Inclusiveness: It must encourage administrative consultation to begin populating a layered green taxonomy that is reflective of India’s fragmented developmental trajectories. 
    • Mitigation of Risks: The effort should be to mitigate the transitional risks to the financial system as the economy moves towards a sustainable future.

Green Taxonomy

Sovereign Green Bonds (SGrBs) in India:

  • Refers: These are a kind of government debt that specifically funds projects attempting to accelerate India’s transition to a low carbon economy.
  • High Adoption: Central banks and governments the world over are encouraging financial institutions to embrace greeniums to hasten the transition to a greener future.
    • However, SGrBs yield lower interest than conventional G-Secs, and the amount foregone by a bank by investing in them is called a greenium. 
  • Issued Earlier in India: The RBI had issued SGrBs worth ₹16,000 crore in two tranches in January and February last year with maturities in 2028 and 2033. 
  • Classification under Statutory Liquidity Ratio (SLR): Moreover, these green Government -Securities (G-Secs) were classified under the SLR.
    • SLR is a liquidity rate fixed by the RBI that financial institutions must maintain with themselves before they lend to their customers.

Framework for Green Taxonomy: Aligning Regulations and Investments for Sustainable Growth

  • Clear Definition: A green taxonomy definition should be developed in accordance with a country’s existing environmental targets, laws, standards, and labeling schemes. 
  • Technological Advancement: All times, the focus should be on providing a technically sound justification for the activities and investments considered green. 
    • This logic is aligned with international practices, such as the EU taxonomy. 

Green Taxonomy

  • Addressal to Cross-environmental & Social Risk: The green taxonomy may include a section describing the national or, if relevant, the sectoral frameworks for addressing the potential for transferring risk from one environmental objective to another or to different population groups. 
  • Risk Mitigation Schemes: These are anchored in existing national standards, policies, or regulations and will inform users about how these potential risks are addressed.
    • It is advisable to provide relevant references and links to such national and sectoral regulations. 
  • Adequate Investments: The taxonomy should have the stature of an official guideline or policy for filtering such investments in both the public and private sectors. 
    • It has been experienced that for a taxonomy to be effective, it is important to connect it with existing and potential new incentives (such as fiscal incentives, soft credit lines, guarantees, and so on) that promote and support environmentally sound activities, including low-carbon and climate-resilient development.
    • Examples: Lowering capital requirements for sustainable financial products, setting regulatory quotas (minimum annual targets for the disbursement of green finance), and lowering refinancing rates, among others, based on solid market research. 
  • Learning from International Experience: 
    • China: Mandatory green credit guidelines issued by the China Banking and Insurance Regulatory Commission (CBIRC) and the People’s Bank of China (PBOC) have led to increases in green loans to projects offering energy savings or emission reductions.
    • Bangladesh: Green loan portfolios of Bangladeshi banks also increased significantly after the central bank set a minimum annual target for green financing for banks and other financial institutions. 

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Conclusion

A well-defined and structured green taxonomy can support better-informed and more efficient decision making and response to investment opportunities that contribute to achieving national environmental objectives. It will influence India’s ambitious green transition and the introduction of a national taxonomy will display India’s aspiration of ramping up its contribution to the global net-zero vision.

Also Read: FIIs To Invest In Its Green Bonds In India

 

Mains Question: Discuss the significance and challenges of mobilizing resources for sustainable development in India. Suggest measures and policy interventions that can enhance resource mobilization while ensuring equitable growth and environmental preservation. (15 marks, 250 words) 

 

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Daily Current Affairs Quiz Daily Main Answer Writing
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