Context: 

• UN agencies have initiated the provision of humanitarian assistance via the Rafah crossing, but they acknowledge that the assistance falls far short of meeting the requirements of Gaza’s 2.3 million residents.

About Rafah Crossing: 

• Rafah is now also the only crossing point for humanitarian aid into Palestine amid ongoing conflict.
• Control: The crossing is at the south of the Gaza Strip, it is controlled by Egypt.
• Significance: Israel imposed a total blockade of Gaza, leaving Rafah as the only exit point for Gaza residents seeking to flee.

News Source: The Print

DOWNLOAD PDF

Context:

• According to the Central Board of Direct Taxes (CBDT), increasing filing of income tax returns (ITRs) by individual taxpayers is an indication of the widening of tax base due to measures taken by the Income Tax Department. 

Key Findings

• 90% Increase in ITRs Filing: It increased to 6.37 crore in Assessment Year (AY) 2021-22 (financial year 2020-21) from 3.36 crore in AY 2013-14. 
  • Around 7.41 crore ITRs have been filed for AY 2023-24 till date during the current fiscal, including 53 lakh new first time filers.
• Positive Trend: Migration to higher range of gross total income. 
  • In the range of gross total income of Rs 5-10 lakh, and Rs 10-25 lakh, the ITRs filed by individual taxpayers registered an increase of 295% and 291% from AY 2013-14 to AY 2021-22, respectively.
• Not Filing ITRs: The range of gross total income upto Rs 5 lakh includes individuals having income below taxable limit who may not be filing returns.
• Trend of proportionate contribution of gross total income of individual taxpayers vis-à-vis all individual taxpayers from AY 2013-14 to AY 2021-22:
  • Top 1%:  Decreased from 15.9% to 14.6% 
  • Middle 74%: Increased from 75.8% to 77%. 
  • Bottom 25%: Increased from 8.3% to 8.4%.
• Total Number of Taxpayers: Picked up pace in FY 2020-21 to 6.33 crore though it remained below pre-pandemic 2018-19 level by over 20 lakh.

News Source: The Indian Express

DOWNLOAD PDF

Context:

• The Regional Connectivity Scheme (RCS) – UDAN (Ude Desh Ka Aam Nagrik), has completed six years.

About UDAN Scheme (Ude Desh Ka Aam Nagrik) 

• UDAN Scheme Objective:  To connect the country’s under-served and unserved airports.
• Nodal Ministry: Ministry of Civil Aviation
• It is a vital component of India’s National Civil Aviation Policy (NCAP) 2016.
• UDAN scheme created a framework based on the need and led to the formulation of:Lifeline UDAN (for transportation of medical cargo during pandemic).Krishi UDAN (value realization of agriculture products especially in Northeastern Region {NER} and tribal districts).
  • International UDAN routes for North East Region to explore International Connectivity from / to Guwahati and Imphal.
• Under the UDAN scheme, airfares would be capped at Rs 2,500 for half of the seats in flights traveling a distance of 476-500 kilometers. 
• Finance Mechanism: Viability Gap Funding (VGF) for the scheme would be shared by the Centre and the states concerned, for a limited period.

Various Phases of the UDAN Scheme

• UDAN 1.0: 5 airlines companies were awarded 128 flight routes to 70 airports (including 36 newly made operational airports)
• UDAN 2.0: 73 underserved and unserved airports were announced and for the first time, helipads were also connected.
• UDAN 3.0: In coordination with the Ministry of Tourism, Tourism Routes were included. In addition to Seaplanes for connecting Water Aerodromes, several routes in the North-East Region came under the ambit of the scheme.
• UDAN 4.0: Gave impetus to North-Eastern Regions, Hilly States, and Islands. The operation of helicopters and seaplanes incorporated.
• UDAN 5.0: Its focus is on Category-2 (20-80 seats) and Category-3 (>80 seats) aircraft and prioritizes the routes that will connect the airports that are ready for operations.
  • UDAN 5.1: It is dedicated to expanding helicopter services in hilly regions to stimulate tourism, hospitality, and local economic growth.

UDAN Scheme Significance

• The UDAN scheme has helped airline operators to start up and develop a sustainable business model. 
• Additionally, it’s providing opportunities to small regional airlines FlyBig, Star Air, and IndiaOne Air to scale up their businesses and their successful run is evidence of the fact that the scheme is creating an amiable ecosystem conducive to airline business.

News Source: PIB

DOWNLOAD PDF

Context:

• A trend has been found under Rashtriya Gokul Mission, that only the Gir indigenous cow breed is being promoted under it.

Gir Cows

• India recorded 2.3 million purebred Gir cows in the 2019 livestock census, which is an almost 70 per cent jump from the 2013 estimate of 1.38 million. 
• The population of Sahiwal stood at 1.88 million in 2019 and its graded variety increased from 3.79 million to 4.07 million between 2013 and 2019.

About  Rashtriya Gokul Mission(RGM) 

• Objectives
  • Development and conservation of indigenous breeds; 
  • Breed improvement programme for indigenous breeds so as to improve the genetic makeup and increase the stock
• Nodal Ministry: Ministry of Fisheries, Animal Husbandry and Dairying
• Implementation: Rashtriya Gokul Mission is implemented through the Livestock Development Boards.
• The scheme comprises of two components namely:
  • National Programme for Bovine Breeding (NPBB) 
  • National Mission on Bovine Productivity (NMBP).  
• The scheme is under the umbrella scheme Rashtriya Pashudhan Vikas Yojna.

Initiatives under RGM

• Awards for encouraging farmers/breeder societies to rear Indigenous breeds of Bovines: 
  • Gopal Ratna awards: For farmers maintaining the best herd of Indigenous Breed(s) and practicing best management practices. 
  • Kamdhenu awards: For Best managed Indigenous Herd by Institutions/Trusts/ NGOs/ Gaushalas or best managed Breeders’ Societies.
• Gokul Grams: These  are set up as Integrated Indigenous Cattle Development Centres with the aim of conservation and development of indigenous bovine breeds in a scientific and holistic manner.
• National Kamdhenu Breeding Centre: Under RGM, two National Kamdhenu Breeding Centres (NKBC) are being established as Centres of Excellence to develop and conserve Indigenous Breeds in a holistic and scientific manner. 
• Pashu Sanjivni: An Animal Wellness Programme encompassing provision of Animal Health cards (‘Nakul Swasthya Patra’) along with UID identification and uploading data on National Database;
• Advanced Reproductive Technology: Including Assisted Reproductive Technique- In-vitro Fertilization (IVF)/ Multiple Ovulation Embryo Transfer (MOET) and sex sorted semen technique to improve availability of disease free female bovines. 

News Source: Down to Earth

DOWNLOAD PDF

Context:

• China-Bhutan held their 25th round of boundary talks, which have been held up since the last round in 2016.

China-Bhutan Boundary Cooperation

• The boundary talks are in the framework of  “Cooperation Agreement” between both countries, which  outlines the functioning of a Joint Technical Team (JTT) on the “Delimitation and Demarcation of the China-Bhutan Boundary.

China-Bhutan Boundry Talks – India’s Security Concerns

• Experts in India have said any deal between China and Bhutan that accedes to a “swap arrangement” between areas to the north (Jamparlung and Pasamlung valleys) with Doklam to the west would be of concern to India, given the proximity to India’s narrow “Siliguri corridor” that connects the north-eastern States with the rest of India. 
• India and China were involved in a stand-off in Doklam near the India-China-Bhutan trijunction in 2017.

Bhutan’s Response

• However, Bhutan has outlined that no agreement would be made “against India’s interests”, and clarified that any talks about the “trijunction’ ‘ at Doklam would only be held trilaterally between India, Bhutan and China.

News Source: The Hindu

DOWNLOAD PDF

Context:

• Cloud seeding experiments in Maharashtra’s Solapur region resulted in 18 per cent more rainfall than usual, as per a study published in the Bulletin of the American Meteorological Society (BAMS).

Ministry of Earth Sciences’ Initiative: Experiment on Cloud Seeding with Hygroscopic Method

• The experiment involved hygroscopic cloud seeding, which is done in warm convective clouds with a cloud base height greater than zero degree Celsius. 
• Calcium chloride particles were released at the convective cloud base to trigger rainfall.
• The study was part of a project initiated by the Ministry of Earth Sciences and highlights the potential of cloud seeding as a method to alleviate water stress in certain regions.

What are the two types of cloud seeding?

• Hygroscopic cloud seeding: It aims at speeding up droplet coalescence in liquid clouds, leading to production of large droplets that start to precipitate. 
• Glaciogenic cloud seeding: It triggers ice production in supercooled clouds, leading to precipitation. 
  • Glaciogenic cloud seeding is usually done by dispersing efficient ice nuclei, such as silver iodide particles or dry ice (solid carbon dioxide) into the cloud.

Benefits of Cloud Seeding

• Cloud seeding is used all over the world as a method for:
  • Enhancing winter snowfall and increasing mountain snowpack
  • Supplementing the natural water supply available to communities of the surrounding area.

News Source: Economic Times

DOWNLOAD PDF

Context:

• The PM Svanidhi scheme has expanded access to formal credit in India as per study by SBI.

Analysis of the PM SVANidhi Scheme by SBI: Major Findings

• Financial Inclusion and Empowerment: The PM SVANidhi scheme has led to an increase in the number of people included in formal credit and has empowered borrowers financially. 
• First-Time Borrowers and Active Usage by Street Vendors: Many borrowers are first-time borrowers, and a significant number of street vendors are actively using their Jan Dhan accounts and debit cards. 
• Improved Borrower Behavior and Increased Spending: The study also indicates that the formalization of credit has resulted in improved borrower behavior and increased spending among borrowers.
• Demographics of Scheme Beneficiaries: About two-thirds of the borrowers under the scheme fall in the age group of 26-45, and many are first-time borrowers.
  •  Moreover, over 50 lakh street vendors, who have borrowed under the scheme, are actively using their Jan Dhan accounts and debit cards. 
• Top Performing Cities: Of the cities with population over 10 lakh, Varanasi is the top performer where 4-5 % of total spenders are active spenders, followed by Bengaluru, Chennai and Prayagraj. 
• Empowerment of Urban Females: The study said that 43% share of females indicates empowerment capabilities of urban females. 

News Source: TOI

DOWNLOAD PDF

Context:

• Recently, a report from the United Nations University – Institute for Environment and Human Security (UNU-EHS) outlining six interconnected risk tipping points that pose immediate and increasing risks to the world. 

Interconnected Disaster Risks Report 2023 –  Six Risk Tipping Points

• The six risk tipping points include extinctions, depleting groundwater, melting mountain glaciers, space debris, unbearable heat and an uninsurable future. A risk tipping point is the moment at which a given socio-ecological system can no longer buffer risks and provide its expected functions. After this point, the risk of catastrophic impacts to these systems increases substantially.

What are the key findings of the Interconnected Disaster Risks Report 2023?

Extinctions: Human activities such as land-use change, overexploitation, climate change, pollution, and the introduction of invasive species have accelerated species extinctions. 

• • Alarming Extinction Rates: More than 400 vertebrate species have gone extinct in the last 100 years and approximately one million plant and animal species are at risk of extinction. 
  • Cascade Effects: The disappearance of one species can trigger a cascade effect on dependent species and disrupt fragile ecosystems.
    • Example: The gopher tortoise, a keystone species, is facing extinction, affecting over 350 other species, including the critically endangered dusky gopher frog, which regulates insect populations and prevents pest outbreaks in longleaf pine forest ponds.
• Depleting Groundwater: Two billion people rely on aquifers as a primary source of freshwater, and 70% of this water is used for agriculture. 
  • Critical Depletion: However, 21 of the world’s 37 largest aquifers are depleting faster than they can be replenished for example, Saudi Arabia’s shift from wheat exporter to importer due to groundwater depletion; 
  • In India, 78 percent of wells in Punjab have been labelled overexploited, and the north-western part of the country is predicted to experience critically low groundwater availability by 2025.
• Melting Mountain Glaciers: Glaciers serve as critical water sources for drinking, irrigation, hydropower, and ecosystems. 
  • Accelerated Melting: Due to global warming, glaciers are melting at double the speed compared to the past two decades, putting 1.9 billion people at risk. 
    • Between 2000 and 2019, glaciers lost 267 gigatons of ice per year, roughly equivalent to the mass of 46,500 Great Pyramids of Giza.
  • Example: Peru’s Quelccaya glacier, once the world’s largest tropical ice cap, has shrunk by 31 per cent in the last 30 years, contributing to periodic dry season water scarcity and widespread impacts.
• Space Debris: Space debris consisting of objects such as minuscule flecks of paint and massive chunks of metal.
  • Satellite Vs Debris: There are 34,260 objects orbiting Earth, of which only around 25% are functional satellites. The remaining objects include space debris, such as broken satellites and discarded rocket stages. 
    • As these objects travel over 25,000 kilometres per hour, the smallest debris can cause significant damage, including collisions between functional satellites.
• Unbearable Heat: This tipping point in this context is a so-called  “wet-bulb temperature” exceeding 35°C, which combines temperature and humidity. 
  • • The wet-bulb temperature is defined as the temperature of a parcel of air cooled to saturation (100% relative humidity) by the evaporation of water into it, with the latent heat supplied by the parcel.
  • High humidity inhibits the evaporation of sweat, exacerbating the effects of heat and potentially causing organ failure and brain damage. 
  • Extreme heat was responsible for an average of 500,000 excess deaths annually in the last two decades.
  • Examples: Wet-bulb temperatures have crossed this critical threshold in at least two weather stations, one in the Persian Gulf and one in the Indus River Basin.
• An Uninsurable Future: The frequency and severity of extreme weather events have increased weather-related disaster damages sevenfold since the 1970s also wildfires and storms are expanding due to climate change.
  • In 2022, global economic losses due to weather-related disasters amounted to $313 billion
  • Impact on Insurance Industry: As extreme weather events become more destructive, insurance premiums have increased by as much as 57% since 2015.
    • Insurance companies in at-risk areas have limited the amount or type of coverage, canceled policies, or left the market.
    • Example: Over half a million Australian homes are expected to be uninsurable by 2030, primarily due to rising flood risk.

Also read: Redouble Efforts To Reduce Disaster Risks

Recommendations: The Interconnected Disaster Risks Report 2023 proposes two categories for solutions: Avoid solutions, and Adapt solutions

• Avoid solutions: Target root causes and drivers of risk to avoid risk tipping points altogether.
• Adapt solutions: Help prepare or better address the negative impacts of risk tipping points if they cannot be avoided.
  • India’s membership of the Coalition for Disaster Resilient Infrastructure (CDRI), a global partnership to promote climate and disaster resilience of new and existing infrastructure systems, will help mainstream climate considerations into transport infrastructure development.
• For both Avoid and Adapt solutions, there are two types of actions. 
  • Delay Actions: Work within the existing “business as usual” system and aim to slow down the progression toward risk tipping points or the worst impacts. 
    • The Emissions Gap Report 2022 states a crucial need to cut emissions by 45% to avert a global catastrophe.
    • Viable solutions for societal transformation are available, emphasizing the need for immediate collective, multilateral action.
  • Transform Action: It involves a fundamental reimagining of a system into something stronger and more sustainable than before.
    • A number of countries have made commitments to move to a net zero emissions economy. In order to meet the 1.5°C global warming target in the Paris Agreement, global carbon emissions should reach net zero around mid-century.
    • India is committed to achieve the Net Zero emissions target by 2070.
      • Net zero refers to a state in which the greenhouse gases going into the atmosphere are balanced by removal out of the atmosphere.
• Transformative Changes: The Interconnected Disaster Risks Report 2023 underscores the interconnected nature of risks and advocates for transformative changes that impact behaviors and values.
• Overall Changes to Reduce Risk:
  • The Interconnected Disaster Risks Report 2023 highlights broad behavioral and societal shifts that can transform systems and reduce overall risk.
  • These include a shift towards zero waste, a stronger connection to nature, global cooperation and trust, consideration for future generations, and transitioning to an economic model focused on human well-being within planetary boundaries.

Conclusion:

These risk tipping points underscore the need for proactive measures, transformational changes, and global cooperation to mitigate their impact and build a sustainable future.

DOWNLOAD PDF

Context:

• This article is based on the news “There is no easy escape from the middle income trap” Which was published in the Mint. World Bank chief Economist ‘Indermit Gill’ recently commented that Middle-income countries like India need to make policies based on reliable data to get into the league of high-income nations in the next 3-4 decades as achieving sustainable growth will become more challenging.

India’s Path to Developed Economy: Aiming for 8% Growth by 2047

• Going forward, economic growth will get more complicated for middle income countries like India, not easier. He pointed out that relatively few countries (31) have grown into high-income countries between 1990 and 2021.
  • The success stories of transformation to high-income status include Japan, Taiwan,  South Korea, Portugal, Poland and Latvia.
• India needs to achieve a growth rate of 8% to become a developed economy by 2047, according to World Bank’s latest India Development Update (IDU).

How does World Bank classify countries based on income?

The World Bank assigns the world’s economies to four income groups—low, lower-middle, upper-middle, and high income. The classifications are updated each year on July 1 and are based on the GNI per capita of the previous year. GNI measures are expressed in United States dollars (USD).

Classifications can change for two reasons:

• Changes to Atlas GNI per capita: In each country, macro economic indicators influence the level of Atlas GNI per capita. Revisions to improve national accounts estimates and methods can also have an impact
• Changes to classification thresholds: To keep income classification thresholds fixed in real terms, they are adjusted annually for inflation using the Special Drawing Rights (SDR) deflator, 
  • A weighted average of the GDP deflators of China, Japan, the United Kingdom, the United States, and the Euro Area.  For example the below table shows data for the year financial year 2023.

What is the middle income trap?

• A middle income trap is a scenario where the country’s economy cannot transition to higher per-capita income levels. 
• Low wages, cheap labour, and basic technology catch-up help low-income countries transition faster to middle-income levels. 
• Getting from $1,000 per capita to $10,000 is more complicated than getting from $100 to $1,000, which relies on low labour costs and more jobs.

What are the reasons for the middle income trap?

• The middle income trap captures a situation where a middle-income country can no longer compete internationally in standardized, labor-intensive goods because labour  wages are too high. 
• However, it also cannot compete in higher value-added activities on a broad enough scale because productivity is relatively too low. 
• The result is slow growth, stagnant or falling wages, and a growing informal economy.

How has India moved up the development ranks?

• In 1960, Per capita income of India was $1,033 (in 2011 purchasing power parity terms),  equivalent to 6% of the per capita income of the US. 
• India attained lower-middle-income status in 2008. By 2017-18, per capita income of India was $6,538—or 12% of the per capita income of the US.
• India will only transition from a lower-middle to an upper-middle income category country. If the average growth rate becomes 8 percent, per capita income of India will reach US $14,000 by 2047.
• In the report, India’s economy is expected to reach $4.94 trillion by FY27 and grow to $5.36 trillion against Japan’s $5.17 trillion in FY28.

Also read: Core Sectors Growth

What are the challenges for India’s high economic growth?

The 2017-18 Economic Survey warned that the Following factors could hurt India’s growth story.

• Hyper-globalization repudiation: A backlash in advanced countries against rapid globalization has led to a fall in world trade GDP ratios since 2011. 
  • Global trade is expected to grow less than 2% this year—not even half the annual average that prevailed in the 2000s (world Trade Report 2023).
  • This could result in a decline in exporting opportunities. For Example: The US government withdrew GSP (Generalized System of Preferences) benefits to India worth $70 millionin 2018.
• Thwarted Structural transformation: It is process of shift of surplus labour from agriculture and other informal economic activities to higher productivity activities in the non-farm economy (Manufacturing).
  • The NSSO’s annual Periodic Labour Force Survey (PLFS) report for 2021-22 (July-June) shows the farm sector’s share in the country’s employed labour force at 45.5% however the contribution of agriculture to GDP is only 19.9% result in low productivity.
• Poor Human Capital Development: India have failed to provide the basic education necessary for structural transformation.
  • This failure prove increasingly costly because the human capital is not enable for the structural transformation.
• Climate Change-induced agricultural Stress: In India agricultural productivity growth has been stagnant, averaging roughly 3% over the last 30 years. Climate change is projected to reduce wheat yield by 19.3% in 2050 and 40% in 2080 scenarios with significant spatial and temporal variations according to National Innovations in Climate Resilient Agriculture (NICRA).
  • Extreme events like droughts affect the food and nutrient consumption, and its impact on farmers.

• Growing Economic Disparities: As per the World Inequality Report 2022, India is among the most inequitable countries globally, with the bottom half of the population earning Rs 53,610, but the top 10 percent earning 20 times at Rs 11,66,520. 
  • For example: The top 10 percent hold  57 percent of national income.
• Low Per Capita Income of India:  According to World Bank data, India’s per-capita GDP of $2,277 in 2021 was behind China ($12,556.3), the United States ($69,287.5) and the United Kingdom ($47,334.4).
• Declining FDI and Investment: According to the Reserve Bank of India data, net FDI into India fell to $3 billion in the five months through August (2023), compared with $18 billion in the same period a year earlier.
  • Impact: less capital inflow for investment and expansion, potentially leading to slower economic growth and a slowdown in job creation.

What are the strategies to escape middle income traps?

• Structural Reforms: Reforms are needed in India to facilitate the turnaround from growth deceleration due to structural bottlenecks, deteriorating investment, and a worsening current account deficit, according to a new Asian Development Bank (ADB) report.
  • For example, Insolvency and Bankruptcy Code (IBC) is also an important reform measure that has resulted in robust banking systems in India
• Investment: India should reach the investment-to-GDP ratio of 35%, for which savings in the country need to grow to 32% of the GDP.
  • Savings and Investment rates were 30.2 and 29.6 per cent, respectively, in FY22, needs to be further propelled.
• Balance Fiscal Consolidation with Growth: The current general debt of the  India has public debt at 83% of GDP and combined fiscal debt (states and Centre) in double digits, among the highest fiscal deficits in Asia.
  • India needs to follow fiscal consolidation alongwith bringing down the fiscal deficit to targets set under FRBM framework.
• Education and skill development:  Skill development results in labour productivity and inclusive growth.
• • The India Skills Report 2021 found that only about 45.9% of young people would be considered employable. The number was about 46.2% in 2020 and 47.4% in 2019.
• Research Development and Innovation: Innovation will be  key in transforming India’s economy, and India’s progress in the Global Innovation Index 2022 from the 81st spot in 2015 to the 40th is a good indicator of the road ahead.
• Some notable initiatives: There have been many examples, including how we monitored vaccination programmes (CoWin platform). 
  • The Centre has developed a data ecosystem through platform  such as UPI (Unified Payments Interface) and Aadhaar which are key drivers of new India
• Climate Change Adaptation: India should develop and customise adaptation technologies and solutions to address climate-induced vulnerabilities in agricultural production and food security, disaster risks, resource access (water, power, coastal resources, etc.), and human health.

Conclusion:

India’s economic outlook involves navigating challenges to achieve sustainable growth. Addressing poverty, gender gaps, and climate change through targeted policies and investments will be crucial for India’s long-term development and to escape the middle income trap.

DOWNLOAD PDF