Dec 31 2024

As India accelerates towards becoming a $5 trillion economy by 2027, the transportation and the logistics sector is set to play a pivotal role in this journey. 

What Is Logistics?

Logistics

  • Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. 
  • Logistics management involves identifying prospective distributors and suppliers and determining their effectiveness and accessibility. 

Importance of Logistics

  • Economic Contribution: Logistics contributes 13-14% to India’s GDP, showcasing its pivotal role in driving economic growth. 
  • Facilitates Trade and Commerce: A robust logistics sector supports domestic and international trade by enabling the seamless movement of goods. 
  • Job Creation and Employment: The logistics sector is one of the largest employment generators, providing jobs to over 22 million people in India. 
    • Additionally, it is projected to add 10 million jobs by 2027, contributing significantly to economic empowerment​​.
  • Reduces Cost and Enhances Competitiveness: Efficient logistics operations reduce transportation and warehousing costs, allowing businesses to offer competitive pricing. 
    • For example, the introduction of GST reduced truck waiting times at state borders, decreasing logistics costs and increasing supply chain efficiency​​.
  • Supports E-commerce Growth: The rise of e-commerce has increased the demand for efficient logistics solutions, including last-mile delivery and cross-border trade. 
    • For instance, platforms like Amazon and Flipkart rely on advanced logistics networks to meet customer demands for faster and reliable delivery​.
  • Boosts Supply Chain Efficiency: A well-functioning logistics sector ensures smooth and timely supply chain operations, reducing lead times and optimizing production. 
    • For example, the development of Multi-modal Logistics Parks (MMLPs) has improved freight handling, lowering overall supply chain costs​​.

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Logistics Sector in India

  • Global Standing: India’s logistics sector is one of the largest globally, ranked 38th among 139 countries in the World Bank’s Logistics Performance Index 2023, showcasing steady improvement in efficiency and infrastructure​​.
  • Modes of Transport
    • Road Transport: Accounts for 66% of cargo movement, but faces challenges like poor road conditions and congestion.
    • Rail Transport: Handles 26% of freight but requires modernization and increased capacity.
    • Air and Waterways: Contribute 1% and 3%, respectively, but hold potential for growth through government initiatives like Sagarmala​​.
  • Technological Adoption: India is transitioning to a digitally integrated logistics ecosystem with technologies like AI, IoT, blockchain, and automation. 
    • However, the adoption rate is still lower compared to global standards​​.
  • E-commerce and Trade Growth: The rise of e-commerce and cross-border trade has accelerated demand for logistics services. 
    • Companies like Amazon and Flipkart rely heavily on advanced logistics to meet customer expectations for faster delivery​​.

Challenges with Logistics Sector in India

  • High Logistics Costs: Logistics costs in India account for 13-14% of the GDP, compared to the global benchmark of 8-10%. 
    • This increases the cost of Indian goods, making them less competitive in international markets. 
    • For instance, inefficiencies in transportation and warehousing contribute significantly to these high costs​​.
  • Fragmented Industry Structure: The logistics sector is highly fragmented, with small, unorganized players dominating 80% of the market. This results in poor resource optimization and inefficiencies. 
    • For example, most trucking companies operate with fleets of fewer than five trucks, limiting scalability​​.
  • Inadequate Infrastructure: India’s logistics infrastructure, including roads, railways, ports, and warehouses, is insufficient to handle the growing demand. 
    • Only 31% of freight moves through rail, despite it being more cost-efficient than road transport, which handles 66% of cargo​​.
  • Skill Shortage: The sector faces a significant shortage of skilled workers in supply chain management and logistics technologies. Limited vocational training and industry-specific education exacerbate this issue. 
    • For example, despite the growing demand for advanced warehousing and technology-enabled logistics, training programs remain sparse​​.
  • Regulatory Complexity: Complex and inconsistent regulatory frameworks, including multiple tax structures and compliance requirements, create operational barriers. 
    • The introduction of the Goods and Services Tax (GST) has helped streamline some processes, but further harmonization is needed​.
  • Last-Mile Connectivity Issues: Last-mile delivery faces challenges such as poor road infrastructure, traffic congestion, and inadequate address mapping in urban and rural areas. 
    • For instance, delays in last-mile connectivity impact e-commerce deliveries, leading to customer dissatisfaction​​.
  • Technological Gaps: While the sector is moving towards digitization, the adoption of advanced technologies like AI, IoT, and blockchain is still limited compared to global standards

Best Global Examples of Logistics Sectors

Singapore: A Global Logistics Hub

  • Ranked consistently as the top performer in the World Bank’s Logistics Performance Index due to its efficient port infrastructure, advanced technology, and seamless trade facilitation.
  • Best Practices: Integration of cutting-edge technologies like IoT and AI for real-time tracking, and a single-window platform for trade documentation.
  • Singapore is well-connected to the world’s major markets, with daily sailings to every major port of call and over 6,500 weekly flights to 280 cities in 60 countries. 

Netherlands: Gateway to Europe

  • Rotterdam, Europe’s largest port, handles over 469 million tons of cargo annually, connecting global trade routes.
  • Best Practices: Use of automated port operations and blockchain for customs and trade facilitation.

China: Scale and Innovation

  • China leads in logistics scale, with advanced infrastructure including mega ports like Shanghai (the busiest in the world) handling over 47 million TEUs annually.
  • Best Practices: Integration of AI and IoT in supply chain management, and significant government investment in infrastructure through the Belt and Road Initiative.

United States: Logistics Powerhouse

  • Strong integration of road, rail, and air logistics systems, with companies like Amazon and FedEx leading innovation in e-commerce logistics and last-mile delivery.
  • The Port of Los Angeles is a major gateway for trans-Pacific trade, handling over 9 million TEUs annually.

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Government Initiatives for the Logistics Sector in India

  • National Logistics Policy (NLP) 2022: 
    • The National Logistics Policy aims to reduce logistics costs to single digits, enhance India’s global competitiveness, and create a unified digital logistics platform. 
  • PM GatiShakti (2021): 
    • PM GatiShakti is a transformative initiative designed to provide multimodal connectivity infrastructure to various economic zones. 
    • This initiative emphasizes multi-modal connectivity, reducing disruptions, and fostering infrastructure synergy for improved logistics efficiency​​.
  • Multi-Modal Logistics Parks (MMLPs)
    • It was launched in 2017 under the Logistics Efficiency Enhancement Programme (LEEP)
    • Multi-Modal Logistics Parks (MMLPs) are transportation hubs that consolidate warehousing, storage, distribution, and other logistics services under one roof. 
    • The government is establishing 35 Multi-Modal Logistics Parks across strategic locations, with a total investment of ₹50,000 crores. 
  • Dedicated Freight Corridors (DFCs): 
    • Dedicated Freight Corridors (DFCs) are a network of railway tracks in India that are exclusively used for freight trains.
    • The Ministry of Railways announced the DFC initiative in 2005-06.
    • The 2,843-km-long DFC project, passing through 56 districts in seven states, is 96.4 per cent complete.
  • Goods and Services Tax (GST) (2017)
    • The implementation of GST has streamlined the movement of goods by eliminating state border checkpoints. 
    • With GST creating a unified tax regime, businesses have been able to consolidate these into larger, centralized warehouses.
    • For instance, e-commerce companies like Amazon and Flipkart have significantly benefited by setting up large regional fulfillment centers instead of smaller state-specific warehouses​.
  • Unified Logistics Interface Platform (ULIP) (2022): 
    • It was conceptualized by NITI Aayog and is operated by NICDC Logistics Data Services (NLDS), a joint venture between the Government of India and NEC Corporation.
    • ULIP is a digital platform that integrates over 30 systems from ministries and logistics partners, providing real-time data for seamless coordination. 
      • It has streamlined cross-border trade, last-mile delivery optimization, and reverse logistics​​.
  • Sagarmala Project (2015):
    • It is a flagship initiative by the Ministry of Ports, Shipping and Waterways of the Government of India to develop India’s maritime sector: 
    • Goal: To reduce logistics costs, improve port efficiency, and promote coastal community development.
  • e-Way Bill System (2018):
    • The e-Way Bill system digitizes inter-state goods transportation, eliminating the need for physical documentation and reducing delays caused by bureaucratic procedures at state borders​​.
    • Required for the movement of goods valued at more than Rs. 50,000 under the Goods and Services Tax (GST) regime.
  • Logistics Data Bank (LDB) (2016):
    • The Logistics Data Bank app provides real-time tracking of export-import (EXIM) cargo, enhancing predictability, transparency, and reliability in the supply chain​​.

National Logistics Policy (NLP)

  • The National Logistics Policy (NLP) was launched in September 2022 to complement PM GatiShakti National Master Plan (NMP). 
  • The NLP addresses the soft infrastructure and logistics sector development aspect, inter alia, including process reforms, improvement in logistics services, digitization, human resource development and skilling.
  • Vision: To drive economic growth and business competitiveness of the country through an integrated, seamless, efficient, reliable, green, sustainable and cost-effective logistics network by leveraging best in class technology, processes and skilled manpower. 
  • Targets: The targets of the NLP are to: 
    1. Reduce cost of logistics in India; 
    2. Improve the Logistics Performance Index ranking – endeavor is to be among top 25 countries by 2030, and 
    3. Create data driven decision support mechanism for an efficient logistics ecosystem.

Comprehensive Logistics Action Plan (CLAP)

  • To achieve these targets, a Comprehensive Logistics Action Plan (CLAP) as part of the NLP was launched covering eight action areas including 
    1. Integrated Digital Logistics Systems
    2. Standardization of Physical Assets and Benchmarking of Service Quality Standards
    3. Logistics Human Resource Development and Capacity Building; 
    4. State engagement; 
    5. EXIM Logistics; 
    6. Services Improvement Framework; 
    7. Sectoral Plans for Efficient Logistics (SPEL); and 
    8. Facilitation of Development of Logistics Parks.

Way Forward for the Logistics Sector in India

  • Reduce Logistics Costs: Focus on reducing logistics costs to align with global benchmarks of 8-10% of GDP. 
    • This can be achieved through infrastructure modernization, promoting multi-modal transportation, and adopting cost-efficient technologies like automation and AI-driven analytics​​.
  • Strengthen Infrastructure Development: Accelerate the development of dedicated freight corridors, multi-modal logistics parks, and coastal shipping networks
    • Investments in road and rail connectivity, especially for last-mile delivery, will significantly enhance logistics efficiency​​.
  • Promote International Collaboration: Strengthen international partnerships to enable shared infrastructure, data exchange, and coordinated decision-making. 
    • For example, the India-Middle East-Europe Corridor (IMEC) aims to establish seamless connectivity between India and Europe through the Arabian Peninsula​​.
  • Attract Investments and Enhance Private Sector Participation: Leverage initiatives like the National Infrastructure Pipeline (NIP), which aims to mobilize ₹50 lakh crore (approximately $650 billion) for infrastructure projects. 
    • While 100% FDI is permitted in most transport infrastructure development initiatives, additional policy measures and incentives are needed to attract more private and foreign investments, ensuring the desired impact on infrastructure growth​​.
  • Encourage Digital Transformation: Promote widespread adoption of technologies such as blockchain, Internet of Things (IoT), and artificial intelligence (AI) across logistics operations. 
    • These technologies can improve transparency, optimize routes, and reduce transit times​​.
  • Policy Harmonization and Simplification: Further streamline regulations and simplify compliance through single-window systems like the Unified Logistics Interface Platform (ULIP). 
    • Harmonizing tax structures and regulatory frameworks across states can improve ease of doing business​​.
  • Enhance Skill Development: Address the skill gap in the logistics sector by introducing specialized training programs in supply chain management, warehousing, and technology-enabled logistics. 
    • Public-private partnerships with educational institutions can bridge this gap​.
  • Focus on Sustainability: Encourage green logistics practices such as the adoption of electric vehicles, eco-friendly packaging, and carbon-neutral supply chains. 
    • The government and private players should invest in sustainable solutions to reduce the environmental impact of logistics operations​​.

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Conclusion

India’s logistics sector is on the brink of transformation, driven by government reforms, technological advancements, and infrastructure development. By addressing challenges like high costs and fragmentation, and adopting global best practices, India can position itself as a globally competitive and sustainable logistics hub, boosting trade and economic growth.

The National Green Tribunal (NGT) has sought a response from the Centre regarding the implementation of the Central Pollution Control Board (CPCB) recommendations for controlling ozone levels in Delhi.

Key Findings of CPCB Report

  • Exceeding Standards: Ozone concentrations surpassed the national standard (100 µg/m³ for 8 hours) at several monitoring stations.
  • Peak Concentrations: Nehru Nagar recorded 224.9 µg/m³, Patparganj 188.3 µg/m³, and RK Puram 175.4 µg/m³. Nehru Nagar had 56 days, Patparganj 45 days, and Aurobindo Marg 38 days of elevated ozone levels in 2023.
  • Traffic-Heavy Areas: Dangerous levels were observed in several high-traffic locations during April-May 2023.
  • Precursors and Causes: Major contributors include vehicular emissions, biomass burning, and industrial activities, with influence from transboundary movement and biogenic emissions.

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About Ground-Level Ozone (GLO)/ Tropospheric Ozone

Ozone Pollution

  • Formation: Ground-level ozone is a colorless photochemical pollutant formed just above the Earth’s surface.
    • It is a secondary pollutant created when precursor pollutants (NOx and VOCs) react in the presence of sunlight. 
  • Photochemical pollutants are formed when sunlight reacts with primary pollutants like nitrogen oxides and volatile organic compounds (VOCs) in the atmosphere.
  • Peak Levels: Ozone levels peak during summers as rising temperatures, particularly during heatwaves, exacerbate ground-level ozone formation, leading to dangerous air quality.
  • Sources of Precursor Pollutants: Major sources of  include vehicular emissions, fossil fuel power plants, oil refineries, and the agriculture sector.
    • NOx: Nitrogen oxides (NO, NO₂) emitted from combustion.
    • VOCs: Volatile organic compounds (e.g., benzene, toluene) that evaporate readily from the volatile fuels.
  • Ozone PollutionTypes of Ozone
    • Tropospheric Ozone (Ground-Level Ozone): Harmful air pollutants are referred to as “bad ozone.”
    • Stratospheric Ozone: Protective ozone layer in the upper atmosphere that shields the Earth from harmful ultraviolet (UV) radiation, it is also known as good Ozone.
  • Standards of GLO: National Ambient Air Quality Standards (NAAQS) has set the safe limit of ambient ozone levels.
    • 8-hour average: 100 µg/m³.
    • 1-hour limit: 180 µg/m³.

National Ambient Air Quality Standards (NAAQS) 

  • NAAQS are standards set by the Central Pollution Control Board (CPCB) in India to define the permissible limits of various pollutants in the ambient air.
  • Objective:To protect human health and the environment from the harmful effects of air pollution.
  • Pollutants Covered: NAAQS cover major air pollutants like particulate matter (PM2.5, PM10),sulphur dioxide (SO2), nitrogen dioxide (NO2), ozone (O3), carbon monoxide (CO), and lead.
  • Classification: NAAQS are classified into different categories based on sensitive areas (residential, industrial, and rural areas).
  • Implementation: State Pollution Control Boards (SPCBs) are responsible for monitoring air quality and enforcing NAAQS within their respective jurisdictions.
  • Significance: NAAQS play a crucial role in controlling air pollution by setting clear targets for air quality improvement and guiding pollution control strategies.

Impacts of Ground-Level Ozone

  • Health Impacts:
    • Increased risk of heart attacks and strokes: Ozone can inflame the lining of the lungs, which can lead to increased blood pressure and heart rate, making people more susceptible to cardiovascular events.
      • It causes 1 million premature deaths annually worldwide.
    • Reduced lung function: Long-term exposure to ozone can permanently damage lung tissue, reducing lung function and making it more difficult to breathe. It aggravates asthma, bronchitis, and other respiratory conditions.
    • Weakened immune system: Ozone exposure can suppress the immune system, making individuals more vulnerable to infections.
    • Eye irritation: Ozone can irritate the eyes, causing redness, watering, and even temporary vision problems.
  • Climate Impacts:
    • Acts as a strong greenhouse gas: Tropospheric ozone (O3) is the third most important anthropogenic greenhouse gas after carbon dioxide (CO2) and methane (CH4).
    • Indirectly affects climate change: Ozone can react with other pollutants to form secondary pollutants, such as particulate matter, which can further contribute to climate change.
    • Affects weather patterns: Ozone can alter weather patterns by changing atmospheric circulation and temperature.
  • Agriculture and Ecosystem Impacts: 
    • Reduced forest growth and productivity: Ozone can damage trees and other vegetation, reducing their growth and productivity.
    • Increased susceptibility to pests and diseases: Ozone stress can weaken plants, making them more susceptible to pests and diseases.
    • Loss of biodiversity: Ozone pollution can harm sensitive ecosystems, leading to a loss of biodiversity.

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Recommendations for Ozone Control

  • Ozone control is primarily achieved by reducing its precursors: Nitrous oxides (NOx), volatile organic compounds (VOCs), methane, and carbon monoxide (CO).
  • Localized control of precursors may not significantly reduce ozone levels as both ozone and its precursors can travel over long distances.
  • National-level initiatives are essential for addressing these precursors effectively.

Measures Taken to Control Precursors of Ozone (NOx and VOCs)

  • National Clean Air Programme (NCAP) (2019)
    • Aims to reduce air pollution across India.
    • City-specific clean air action plans implemented in 130 non-attainment cities.
  • BS VI Vehicles: Reduced NOx emissions by up to 87% for heavy vehicles and 70-85% for two-wheelers.
  • Electric Mobility: Promoted under PM-E initiative to achieve zero vehicular emissions.
  • Revised Industrial Emission Standards: Stricter NOx and VOC standards for industries such as fertilizers and thermal power plants.
  • Vapor Recovery System (VRS): Installed at petrol pumps in Delhi-NCR to reduce VOC emissions during refueling.
Also Read: Rising Ozone Pollution In Urban India: CSE Report

During the five-year term of the 17th Lok Sabha that ended in 2024, only 9.08 hours were spent on Private Members’ Bills, while the Rajya Sabha spent 27.01 hours on them during the period, shows an analysis by PRS Legislative Research.

About Private Member’s Bill

  • A Private Member’s Bill is a proposed legislation introduced in Parliament by a member (from ruling or opposition party ) who is not part of the government (i.e., not a Minister).
  • Purpose of a Private Member Bill:
    • Offers a platform for MPs to propose laws, express individual views, and highlight public issues independently of party or government directives.
    • Encourages discussion and debate on important matters not prioritized by the government.
  • Key Features of Private Member’s Bill:
    • Introduction: Can be introduced by any MP who is not a Minister.

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PRS Legislative Research

  • Establishment: PRS Legislative Research was founded in September 2005 as an independent, non-profit organization.
  • Role: PRS aims to make the Indian legislative process more informed, transparent, and participatory by providing high-quality research and analysis on legislation, budgets, and the work of Parliament to legislators, citizens, and the media.

      • A 1-month notice is required before introducing the Bill.
    • Schedule: Discussed only on Fridays in both Houses of Parliament during Private Members’ Business hours.
    • Content and Scope: Can address any issue within the legislative competence of Parliament.
      • It must adhere to constitutional provisions and avoid repugnancy with existing laws.
      • Money bills are considered government bills and can only be introduced by a minister and not by a Private Member.
      • Bill for the amendment of the Constitution can be introduced  either by a minister or by a private member

Challenges

  • Low Priority: Limited time allocated (only Fridays). Often overshadowed by Government Bills.
  • Low Success Rate: Only 14 Private Members’ Bills have been passed and received Presidential assent since independence.
    • None passed in both Houses since 1970.
  • Delays: Bills often wait years for discussion due to overcrowded legislative agendas.
  • Attendance Issues: MPs often skip Friday sessions, reducing participation.

Famous Examples of Private Member Bill

  • Supreme Court (Enlargement of Criminal Appellate Jurisdiction) Bill, 1970: Passed and became law, expanding the appellate jurisdiction of the Supreme Court.
  • The Muslim Wakf Bill, 1952: Introduced by Syed Mohammed Ahmed Kazmi and became law in 1954.
  • H.V. Kamath’s 1966 Bill: Proposed to amend the Constitution, limiting Prime Ministerial eligibility to Lok Sabha members. It failed to become a law.

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Proposals for Reviving Private Member’s Business

  • Rescheduling discussions to midweek instead of Fridays.
  • Allocating more time for debates.
  • Streamlining procedures to reduce delays in consideration.

Private Member’s Bill Vs Public (Government) Bill

Feature Private Member’s Bill Public (Government) Bill
Introduction Can be introduced in either House of Parliament. Can be introduced in either House of Parliament.
Introduced By Any MP who is not a Minister. A Minister of the government.
Chance of Approval in Parliament Lesser chance of approval due to limited debate time and prioritization of Government Bills. Greater chance of approval due to prioritization and party support.
Implication of Rejection of the Bill No effect on the government’s position. Indicates a lack of parliamentary confidence and may lead to government resignation.
Notice Period for Introduction Requires one month’s notice before introduction. Requires seven days’ notice before introduction.
Drafting of the Bill Drafted by the MP introducing it, often without departmental assistance. Drafted by the concerned department in consultation with the Law Ministry.
Objective Represents the individual MP’s views or priorities. Represents the policies and agenda of the government.
Time Allocation Scheduled during Private Members’ Business hours, typically Friday afternoons. Prioritized over other business in parliamentary sessions.
Historical Success Only 14 Private Members’ Bills have become law since independence. The majority of laws enacted are Government Bills.

Recently RBI released its annual Report on Trend and Progress of Banking in India 2023-24 under the Banking Regulation Act, 1949, RBI’s annual report and Financial Stability Report.

Key Takeaways from the December 2024 FSR

  • Strong Macroeconomic Fundamentals: India’s macroeconomic fundamentals remain strong, supporting the resilience of the financial system.
  • Healthy Banking Sector: Scheduled commercial banks (SCBs) exhibit strong profitability and declining non-performing assets (NPAs), while maintaining adequate capital and liquidity buffers.

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Report on Trend and Progress of Banking in India 2023-24

  • Scheduled Commercial Banks (SCBs)
    • Credit Growth & Profitability: SCBs recorded profitability improvements for the sixth consecutive year.
    • Improved Asset Quality: Gross Non-Performing Assets (NPAs) fell to a 13-year low of 2.5% (as of September 2024).
    • Strong Capital Position: Capital-to-Risk-Weighted Assets Ratio (CRAR) stood at 16.8% (regulatory minimum is 9%, BASEL-III norms mandate 8%).
  • Urban Co-operative Banks (UCBs): Expanded balance sheet with asset quality improving for the third consecutive year.
  • Non-Banking Financial Companies (NBFCs): NBFCs achieved double-digit credit growth and their Gross NPAs reduced to 3.4% by September 2024.
  • Technological Advancements: Unified Lending Interface (ULI) and Open Credit Enablement Network (OCEN) launched to enhance credit access for small businesses and individuals.
  • Financial Inclusion: National Strategy for Financial Inclusion (NSFI) 2025-30 aims to deepen financial inclusion and tackle emerging challenges.

  • Healthy NBFCs: Non-Banking Financial Companies (NBFCs) maintained sizable capital buffers, robust earnings, strong interest margins, and improving asset quality.
  • Insurance Sector Stability: The insurance sector upheld a consolidated solvency ratio above the required minimum, ensuring resilience.
  • Macroeconomic and Financial Resilience: India’s financial system is underpinned by strong macroeconomic fundamentals, healthy balance sheets, and adequate capital buffers across financial institutions, despite global vulnerabilities.
  • Global Risks: The report acknowledged the ongoing global risks, such as geopolitical tensions and the possibility of a global economic slowdown.

About Financial Stability Report (FSR)

  • The Financial Stability Report (FSR) is a biannual report released by the Reserve Bank of India (RBI).
  • Key Features:
    • Assessment of Financial System: The FSR provides a comprehensive assessment of the resilience of the Indian financial system.
    • Identification of Risks: It identifies and analyzes potential risks to financial stability, both domestic and global.
    • Macroeconomic Analysis: The report includes an analysis of macroeconomic factors that could impact the financial system.
    • Stress Testing: It conducts stress tests on various sectors of the financial system to assess their resilience under different scenarios.
  • Significance:
    • Early Warning System: The FSR acts as an early warning system for potential financial crises.
    • Policy Guidance: It provides valuable insights to policymakers, regulators, and market participants.
    • Transparency and Accountability: It enhances transparency and accountability within the financial system.
  • Recent FSR: The latest FSR released in December 2024 highlighted the resilience of the Indian financial system despite global challenges.

Concerns Raised by RBI in Its Recent Reports (2024)

  • Rising Banking Frauds: A significant increase in fraud cases was reported, with 18,461 cases amounting to ₹21,367 crore during April-September 2024, compared to 14,480 cases worth ₹2,623 crore the previous year.
  • Cybersecurity Threats: The surge in digital transactions has led to an increase in cyber frauds, highlighting the need for robust measures, public awareness, and the identification of mule accounts.
  • Global Economic Vulnerabilities: Persistent medium-term risks such as stretched asset valuations, high public debt, geopolitical tensions, and emerging technology risks were noted as potential challenges to financial stability.
  • Operational and Reputational Risks: Rising fraud cases and technological threats pose risks to the reputation and operational integrity of financial institutions, demanding intensified regulatory vigilance.
  • Emerging Technology Risks: The rapid adoption of technologies like artificial intelligence and digital platforms requires addressing associated security and systemic risks.

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Measures Suggested by RBI in the Reports (2024)

  • Enhancing Cybersecurity:
    • Undertake large-scale preventive awareness campaigns to educate the public on cyber frauds.
    • Strengthen efforts to identify and eliminate mule accounts used in fraudulent activities.
  • Strengthening Financial Intermediaries:
    • Improve resilience through enhanced risk management frameworks for banks, NBFCs, and other financial entities.
    • Ensure adherence to stringent capital adequacy and liquidity norms validated by macro stress tests.
  • Regulatory Vigilance and Adaptability:
    • Reinforce monitoring and regulatory mechanisms to mitigate operational and reputational risks.
    • Promote adaptability to evolving financial landscapes and emerging technological challenges.
  • Fraud Prevention and Consumer Protection:
    • Intensify fraud prevention measures by leveraging advanced technological tools.
    • Enhance customer awareness and ensure robust protection mechanisms against financial losses.
  • Focus on Financial Stability:
    • Foster resilience in financial systems by addressing medium-term vulnerabilities like high public debt and geopolitical risks.
    • Continue stress testing to ensure systemic stability across sectors, including mutual funds and clearing corporations.

The Minister for Ports, Shipping and Waterways recently announced that the cargo-handling capacity at Indian ports has increased by 87% over the last nine years.

  • Tamil Nadu’s Kamarajar Port has shown a remarkable surge, registering a 154% increase in cargo handling capacity.

About Kamarajar Port

  • Kamarajar Port was formerly known as Ennore Port.
  • It is located approximately 24 kilometers north of Chennai in Tamil Nadu, India.
  • It is the 12th major port of India and the first port in India established as a public company.
    • The port was declared as a major port under the Indian Ports Act, 1908, in March 1999.
  • Kamarajar Port is the only corporatized major port in India and is registered as a company.
  • It is owned by the Chennai Port Trust, which also operates the Port of Chennai.
  • The port operates under the landlord port model, where the port authority acts as a regulatory body and landlord, while private companies handle port operations, especially cargo handling.

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Kamarajar Port

India’s Port Sector

  • India ranks as the 16th largest maritime country in the world.
  • The Indian maritime sector contributes to 95% of India’s trade by volume and 70% by value.
  • The Indian port sector is divided into two segments: major ports and non-major ports.
  • India currently has 12 major ports, with Vadhvan Port (13th) and Galathea Port (14th) being the latest additions.
  • There are over 200 non-major ports across India.
  • The Ministry of Ports, Shipping & Waterways regulates major ports in India.

Comparison of Major and Minor Ports

Feature Major Ports Minor Ports
Administration Administered directly by the central government. Administered by state governments.
Legislation Regulated by the Major Port Authorities Act, 2021. Governed under the Indian Ports Act, 1908.
Operational Model Operate on a landlord model with private participation. Managed by state departments or maritime boards.
Jurisdiction Under the central government’s jurisdiction. Under state governments’ jurisdiction.
Example Jawaharlal Nehru Port (100% landlord model). Various state-run ports like Hazira and Mundra.

About Upcoming Major Ports

Vadhvan Port

  • It is located near Dahanu town in Palghar district, Maharashtra.
  • Vadhvan Port is the 13th major port in the country.
  • It is expected to become the largest container port in India and one of the largest deep-water ports in the country.
  • The project will be constructed by Vadhavan Port Project Limited (VPPL), a Special Purpose Vehicle (SPV).
    • VPPL is formed by the Jawaharlal Nehru Port Authority (JNPA) and the Maharashtra Maritime Board (MMB), with a shareholding of 74% and 26%, respectively.

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Galathea Port

  • The Central Government notified Galathea Bay in the Andaman and Nicobar Islands as a major port in 2024.
  • It is located on Great Nicobar Island in the Andaman and Nicobar Islands of India.
  • Galathea Port is being developed as an International Container Transshipment Port (ICTP).
    • A transshipment port acts as a hub where cargo is transferred from one vessel to another for further transportation to its final destination.
  • Galathea Port will be the 14th major port in India.

India’s refugee policy towards the Rohingya has garnered renewed attention due to a report highlighting the appalling living conditions faced by Rohingya refugees in detention camps across the country.

About the Report on Rohingya

  • The report, jointly conducted by The Azadi Project (a U.S.-registered non-profit) and Refugees International.
  • The report reveals “gross violations of constitutional and human rights” and criticizes India’s failure to uphold its obligations under international human rights treaties.
  • Many Rohingya refugees remain incarcerated even after serving their prescribed sentences, as per interviews conducted with detainees, their families, and legal representatives.

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About Rohingya Refugee Crisis

  • The Rohingya are the world’s largest stateless population, numbering approximately 2.8 million.
  • Denied citizenship and subjected to decades of persecution in Myanmar, they have fled genocidal violence and are dispersed across multiple countries.
  • According to the UNHCR, nearly 22,500 Rohingya refugees currently reside in India.

International Protections for Rohingya Refugees

  • 1951 Refugee Convention and 1967 Protocol: These treaties enshrine the principle of non-refoulement, which prohibits states from expelling individuals to countries where they risk persecution, torture, or other severe human rights violations.
    • India is not a signatory to the Refugee Convention or its 1967 Protocol.
  • Non-refoulement is a cornerstone of refugee law and is recognized as customary international law, binding all states regardless of formal assent.
    • In a 2007 advisory opinion, the UNHCR affirmed that non-refoulement constitutes customary law and has an absolute, exception-free nature.

India’s Position on Refugee Policy

  • India is not a party to key international treaties such as:
    • Convention Against Torture: Though India signed the Convention Against Torture, its failure to ratify it makes the provisions non-binding, but non-compliance undermines its commitment as a signatory.
    • The International Convention for the Protection of All Persons from Enforced Disappearance
  • India argues that it bears no legal obligation to provide asylum or adhere to the principle of non-refoulement.
  • Domestic laws such as the Foreigners Act, 1946, and the Passport Act, 1967, are used to detain Rohingya refugees by categorizing them as “illegal migrants.” Judicial Rulings and Government Stance
  • In March 2024, the Union government clarified in the Supreme Court that while Rohingyas are entitled to the right to life under Article 21 of the Constitution, they do not have the right to reside or settle in India.
  • Mohammad Salimullah v. Union of India 2021: The Supreme Court rejected  the plea to stop the deportation of 170 Rohingya refugees, citing national security concerns.
  • In October 2024, the Delhi High Court dismissed a PIL seeking the admission of Rohingya refugee children into local schools, stating it required a policy decision by the Union government.

Principle of non-refoulement 

  • The principle of non-refoulement is a fundamental principle of international law that prohibits states from returning any person to a place where they would face a serious threat to their life or freedom.
  • It applies to all migrants, regardless of their migration status, and is based on the idea that everyone has the right to be free from torture, cruel, inhuman, or degrading treatment. 
  • The principle of non-refoulement is enshrined in various international treaties, including the 1951 Refugee Convention and the Convention against Torture.
  • It is considered to be a fundamental right that must be respected by all states.

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India’s International Obligations

  • Treaties and Conventions: India is a party to the International Covenant on Civil and Political Rights (ICCPR), which obligates states under Article 7 to refrain from deporting individuals to places where they may face torture or cruel, inhuman, or degrading treatment.
  • India has ratified the following:
    • International Convention on the Elimination of All Forms of Racial Discrimination
    • Convention on the Rights of the Child

Judicial Precedents in Refugee Case: 

  • Support for Dignity of Life: In landmark rulings such as Vishaka v. State of Rajasthan (1997) and NALSA v. Union of India (2014), the Supreme Court ruled that in the absence of domestic legislation, international conventions must guide Indian courts to uphold the dignity of human life.
  • Article 51(c) of the Constitution mandates that the State strive to respect international law and treaty obligations.
  • High Courts have recognized non-refoulement as integral to Article 21, with rulings such as:
    • Gujarat High Court: Ktaer Abbas Habib Al Qutaifi v. Union of India (1998)
    • Delhi High Court: Dongh Lian Kham v. Union of India (2015)

Existing Concerns Regarding Refugees

  • Lack of Standardized Refugee Policy: India’s treatment of refugees varies based on shifting geopolitical and diplomatic interests.
    • While groups like Tibetans, Sri Lankans, and Afghans receive refugee certificates or long-term visas, Rohingyas face arbitrary detention despite being registered with the UNHCR.
  • Exclusion under the Citizenship Amendment Act (CAA), 2019: The CAA excludes persecuted Muslim minorities, such as the Rohingya, from its provisions.
  • Lack of Legal Representation and Aid: Rohingya refugees face limited access to legal aid, as many lawyers are reluctant to take up their cases due to funding constraints and potential repercussions.
    • Revocation of FCRA licenses has hindered funding for civil society organizations supporting Rohingyas.
  • Dehumanizing Living Conditions: Detention centers housing Rohingyas, including pregnant women and children, are marked by deplorable conditions.
    • In October 2024, the Supreme Court directed the Assam State Legal Services to conduct surprise visits to evaluate these conditions, particularly at the Matia Transit Camp.

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Government efforts to resolve Rohingya Crisis

  • Limited Refugee Acceptance: India has not officially recognized the Rohingya as refugees and has limited their formal resettlement options.
  • Focus on Repatriation: The government has primarily advocated for the repatriation of Rohingya to Myanmar, despite concerns about their safety and security upon return.
  • Humanitarian Aid: India has provided humanitarian assistance to Rohingya refugees in Bangladesh, particularly through medical aid and disaster relief efforts.
  • Border Security Measures: The government has implemented stricter border controls to prevent further influx of Rohingya refugees.
  • International Cooperation: India has participated in international forums and discussions on the Rohingya crisis, emphasizing the need for a regional solution and the importance of addressing the root causes of the crisis in Myanmar.

A recent study published in the journal Science sheds light on the devastating impact of the 2014-2016 Pacific marine heatwave “the Blob” on Alaska’s common murre seabirds (Uria aalge),

Key Takeaways from the study

  • Massive Die-Off:
    • The marine heatwave (2014–2016)  caused the death of over 4 million common murres (Uria aalge), wiping out more than half of Alaska’s population of these seabirds.
      • It is the largest documented vertebrate die-off linked to warming oceans.

What Are Marine Heatwaves?

  • Marine heatwaves (MHWs) are extended periods of unusually high Sea Surface Temperature (SST).
  • Impacts on Marine Ecosystems:
    • Lead to coral bleaching, destruction of seagrass, and loss of kelp forests.
    • Negatively affect fisheries and marine biodiversity.

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  • Population Decline:
    • Researchers observed a 52-78% decline in common murre populations across 13 colonies from 2008-2022.
      • Marine HeatwaveThis equates to the loss of 4 million birds in less than two years.
    • Causes of the Decline
      • Impact of Rising Temperatures:
        • Higher ocean temperatures disrupted marine ecosystems.
        • A sudden reduction in the quality, quantity, and accessibility of forage fish led to mass starvation among the murres.
      • Pre-Existing Stress:
        • Some murre colonies showed signs of population decline before the heatwave, indicating additional stress factors.
    • There were no signs of population recovery during  (2016-2022). 
      • It shows that  heatwaves likely caused a long-term ecosystem shift, reducing the ability to support seabird populations.
    • Decline in Other Species
      • Pacific Cod:
        • Population dropped by 80% between 2013 and 2017, leading to fishery closures.
      • Humpback Whales:
        • After recovering from whaling, numbers dropped by 20% during the heatwave.
        • Climate-induced food shortages now limit their population growth.
    • Long-Term Effects
      • A persistent drop in top predator populations like murres signals a major ecological shift due to global warming.
      • Ecosystems may face reduced carrying capacity, permanently altering their structure.

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About Common murre

Marine Heatwave

  • Scientific name: Uria aalge.
  • Common murres are black-and-white seabirds that resemble penguins.
  • Nickname: Often called “flying penguins” because of their penguin-like appearance.
  • They are the deepest diving birds in the Northern Hemisphere, capable of diving up to 600 feet to hunt for food.
  • Conservation Status
    • IUCN Status: Listed as Least Concern, indicating no immediate threat to their global population.

About Alaska

Marine Heatwave

  • Geographic Features
    • Alaska is the largest state in the United States in terms of area.
    • Capital: Juneau
  • Borders:
    • North: Arctic Ocean
    • East: Canada
    • South: Pacific Ocean
    • West: Russia (across the Bering Strait)
  • Historical Background
    • Russian Origin:
      • Alaska was originally part of Russia before being purchased by the United States in 1867.
  • Largest lake: Lake Iliamna.
  • Largest Glacier: Malaspina glacier 
  • Highest point: Denali (Mount McKinley).

The Election Commission of India has released granular data for the Lok Sabha elections 2024 and simultaneous assembly elections held in four states namely Andhra Pradesh, Arunachal Pradesh, Odisha and Sikkim

  • Variables Covered: Details of electors, voter turnout, Party wise vote share, gender-based voting behaviour, state wise participation of women electors, regional variations etc.

Women Participation

Women Electors

  • Registered Electors: 
    • There are 47,63,11,240  registered women electors in 2024 out of 97,97,51,847 representing 48.62% as compared to 438537911 and 48.09% in 2019.
      • Puducherry (53.03%) and Kerala (51.56%) had the highest percentage share of Female electors in 2024
      • Per 1000 Male: Number of female electors per 1000 male electors was 946, as compared to 926 in 2019.
  • Voting Behaviour:
    • 65.78% of Female Electors voted in 2024 (excluding Surat) surpassing Male voters with 65.55% of voters.
      • Females outnumbered men in voting numbers for the 2nd continuous time after the 2019 Lok Sabha elections with the difference in turnout increasing from 0.16 to 0.23 points
      • Parliamentary Constituency wise Data: Dhubri (Assam) with 92.17% female voting, followed by Tamluk (West Bengal) with 87.57%.
      • State wise Share: In 15 out of the 28 major states and U.T.s, female turnout surpassed that of men with the gender difference highest in Bihar,  Jharkhand and Uttarakhand
        • Male Voter Dominance: Gujarat, Maharashtra, Jammu & Kashmir, and Rajasthan however saw higher male voters turnout.
  • Contesting Candidates:
    • 800 female candidates contested for the elections in 2024 as compared to 726 female candidates in 2019.
    • State Share: Maharashtra with 111 women candidates is followed by Uttar Pradesh [80] and Tamil Nadu [77].
    • No Women Candidate: 152 parliamentary constituencies however saw no female candidates 

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Election Commission of India

  • It is an independent constitutional body responsible for administering the free and fair elections in order to uphold the true spirit of democracy.
    • Article 324: It provides for an independent Election Commission for the ‘superintendence, direction and control of the electoral roll and conduct of the elections’ in India.
  • Function: The Election Commission conducts the elections to
    • Parliament; State Legislatures; Office of President and of Vice -President
  • Composition: The Election Commission consists of the Chief Election Commissioner and 2 Election Commissioners
  • Appointment: The President appoints Chief Election Commissioner and Election Commissioners.
  • Removal: The Chief Election Commissioner can be removed from office only on the basis of a resolution passed to that effect by both the Houses of Parliament on grounds of ‘Proved misbehaviour or incapacity’.
  • Powers and Functions:
    • To determine the territorial area of the electoral constituencies in accordance with the Delimitation Commission Act.
    • To prepare electoral rolls and revise them from time to time.
    • To notify the schedule of the election

Death of Jimmy Carter

Context: The 39th president of the United States, Jimmy Carter died at the age of 100 years on 29 December 2024.

  • Carter was the longest-lived U.S. president and the first to reach 100 years of age.

About Jimmy Carter

  • Career:
    • Navy: Carter graduated from the U.S. Naval Academy in 1946 and joined the U.S. Navy’s submarine service. 
    • Political Career: He began his career in Georgia politics, where he supported the civil rights movement as State Senator and later Governor.
    • The USA President: Jimmy Carter served as the 39th President of the USA from 1977 to 1981.
      • He defeated the incumbent president Gerald Ford of the Republican Party in the 1976 election.
  • Highlights of the Presidential Tenure:
    • Successful persuasion of The Camp David Accords between Egypt and Israel
    • The Panama Canal Treaties: The Panama Canal was returned to Panama.
    • Signing the SALT II (Strategic Arms Limitation Talks) nuclear arms reduction treaty with Soviet leader Leonid Brezhnev.  
    • The 444 days Iran hostage crisis
    • 1979 Energy Crisis.
    • The end of détente after the Soviet invasion of Afghanistan (leading to a grain embargo, the declaration of the Carter Doctrine, and the 1980 Moscow Olympics boycott).
  • Life after Presidency:
    • The Carter Center in 1982 was established with the goal of advancing human rights, international peacemaking and champions of democracy, public health
    • Areas of work: 
      • Monitoring Elections: The Center had declared at least 113 elections in Latin America, Asia and Africa to be free or fraudulent.
      • Providing treatment for neglected tropical diseases (NTDs) 
      • Deworming and disease eradication efforts, including the campaign to end dracunculiasis 
      • Eradicate the guinea worm parasite: Cases dropped from millions in the 1980s to nearly a handful.

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Shivaji Statue on Pangong Lake Bank

Context: The Indian Army has installed a statue of the Maratha warrior Chhatrapati Shivaji on the bank of Pangong Lake.

  • The statue is located at an altitude of 14,300 feet in the eastern Ladakh sector and  is close to the Line of Actual Control (LAC) with China.

About Pangong Lake

  • Location: Pangong Lake, the world’s highest saltwater lake, is situated in eastern Ladakh on the India-China border at an altitude of over 14,000 feet.
  • Division of Control: India controls approximately one-third of the lake, while China controls about two-thirds.
  • Line of Actual Control (LAC): The LAC passes through Pangong Lake.
  • Disputed “Fingers” Area: The northern bank of the lake has spurs that are referred to as “fingers.” India claims the LAC runs through Finger 8 but controls up to Finger 4, while China claims the LAC is at Finger 2.
  • Salinity: Pangong Lake is a saline lake, despite being located at a high altitude. During winter, the lake’s surface freezes completely.
  • Endorheic Lake: It is an endorheic lake, which means it retains its water and does not allow outflow to external water bodies such as oceans or rivers.
  • Colour Variations: The lake exhibits a unique ability to change colors, showcasing shades of blue, green, and sometimes even red. These changes depend on the angle of sunlight and weather conditions.
  • Karakoram Mountain Range: The Karakoram Mountain range terminates at the north bank of Pangong Lake.

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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