Context: RBI’s Monetary Policy Committee (MPC)  has kept the Repo Rate unchanged at 6.5% for 5th time in a row.

RBI keeps the repo rate steady for the 5th time 

• The status quo on the repo rate at 6.5 percent by the MPC comes amid rising risks to inflation due to the recent spike in vegetable prices. 
• The central bank also retained the stance of the monetary policy as ‘withdrawal of accommodation’.
  • ‘Withdrawal of accommodation’ means to reduce the money supply in the system which will rein in inflation further.
• GDP estimates: It revised upwards to 7 percent from 6.5 percent for FY 2024.
• Inflation estimate remained unchanged at 5.4 percent.

Why has RBI kept the Repo Rate unchanged?

• Dichotomy between retail and core inflation: while the retail(food) inflation is above the 4 % target and rising the core inflation is easing around 4%. Consumer price-based inflation (CPI) eased to 4.87 percent in October from 5.02 percent in September.
• Food inflationary pressures:  recurring and overlapping food price shocks coming from global factors and adverse weather events( el- nino induced rainfall pressures)
• Ensure better transmission of interest rates: transmission of (250 bps hike in Feb 2023) from 6.25 to 6.5  has not happened by the banks till now.

Practical Implications of MPC Decision

• All external benchmark lending rates that are linked to the repo rate will not rise. 
  • Interest rates on home, vehicle, personal, and other loans in the banking system will remain unchanged.
• Interest rates on loans and deposits are set to remain unchanged. 
  • Certain segments of the retail loans are expected to cost more as the RBI recently hiked the risk weights on retail loans. 

News source: Indian Express

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Context: As per the Union minister of state for environment, forest and climate change, 397 Asiatic lions died in Gujarat due to various causes.

Rising Asiatic Lions Deaths Spark Government Action for Conservation

• Breakup: 66 lions and 60 cubs died in 2019, 73 lions and 76 died the next year, while 76 lions and 46 cubs died in 2021.
  • 10.53 % of lions including 3.82 % of cubs have died due to unnatural reasons out of the total deaths 
  • 182 cubs aged 0-1 year were among the 397 lions that died during 2019-2021
• In response to these worrying statistics, the minister emphasized the Central government’s support in the form of Integrated Development of Wildlife Habitats  for lion conservation in Gujarat.

Integrated Development of Wildlife Habitats (CSS-IDWH) 

• Under IDWH, financial assistance is provided to State/UT Governments for the protection and conservation of wildlife and its habitats in Protected Areas (PAs) as well as outside PAs and also for the recovery programmes of the critically endangered species.
• It is a Centrally Sponsored Scheme Other initiatives:
• Launch of Project Lion in 2020
• Asiatic lion conservation project

News Source: DTE

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Context: India planning to move to the T+0 trading settlement system from the current T+1 system

India to move to T+0 trading settlement system before FY24-end

• Before the end of the financial year 2023-2024, India will move to set up same day market settlement of trades (T-0)  and to instantaneous settlement a year later, says SEBI chairperson.
• It means shares or money will be credited to the investor’s account on the day of the trade itself. 
• This will be a parallel system in existence with the current cycle and will be completely optional.

What is the T+0 trading settlement system?

• About: The interval of time between the trade date on which an order is executed in the market and the settlement date on which a trade is deemed final is known as the trade settlement period in the securities industry.

• Status in India: India already operates on a” T+1” settlement framework (settlement one day after the trade is initiated ) and moving to” T+0” would mean settlements on the same day ( within an hour)  and instant settlement would ensure trades are settled immediately.
  • For Example: if someone buys shares on Monday, he\she will receive them in his/her demat account on Monday itself. 

Prerequisites for instant trade settlement

• A real-time payment system: UPI( Unified Payment Interface) enables instant and seamless fund transfers across banks and platforms.
• Online depositories: NSDL(National Securities Depositories Limited) and CDSL (Central Depositories Services Limited) hold securities in electronic form and facilitate their transfer through demat accounts.
• Robust technology stack: Robust technology stack is needed for high-speed and high-volume trading and settlement activities.

T+0 trading settlement system: Benefits 

• Investor’s point of view:  more efficient use of capital as it will free up that amount of margin (the money that needs to be blocked for buying shares) that can earn interest in the bank account
• Reduction In Unsettled Trades: Reduces the number of outstanding unsettled trades and decreases the unsettled exposure to clearing corporation of India limited(CCIL) Reduction in systemic risk to the economy.
• It will make India one of the fastest markets globally in terms of the settlement system after China.

T+0 trading settlement system: Challenges 

• Complexities associated with switching systems: Implementing T+0 trading settlement system can be challenging due to the complexities associated with switching systems, especially in intricate markets.
• Potential Market Volatility: Faster settlements, such as T+0, might lead to quicker market reactions, introducing the potential for increased market volatility.

News Source: Business Today

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Context: Recently, an Alternative Livelihood Programme under the Amrit Dharohar Capacity Building Scheme-2023 has been launched in Sultanpur National Park.

Sultanpur National Park 

• Sultanpur National Park is a Ramsar Site in Haryana.
• With the help of the State Forest Deptt., a total of 30 participants have been identified from the local communities located around Sultanpur Bird Sanctuary to impart this training and subsequently certify them as nature-guides.

About the Amrit Dharohar Scheme

• Amrit Dharohar Scheme Launched By: The Ministry of Tourism (MoT) in collaboration with the Ministry of Environment, Forest & Climate Change (MoEFCC).
• Aim of Amrit Dharohar Scheme: Under this initiative, the Indian Institute of Tourism & Travel Management (IITTM), will build the capacity of local community members around different Ramsar sites.
  • Indian Institute of Tourism & Travel Management (IITTM), is an autonomous body under MoT
• Significance of Amrit Dharohar Scheme: It will strengthen nature tourism at these sites and provide alternative livelihood to the local community. 
• Five Priority Sites: Sites identified in the first phase by MoT and MoEFCC for taking up training programmes for local communities under the Alternative Livelihood Programme (ALP) are:
  • Sultanpur (in Haryana)
  • Bhitarkanika and Chilika (in Odisha) 
  • Yashwant Sagar and Sirpur (in Madhya Pradesh) 

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About Amrit Dharohar

• Vision: To promote unique conservation values of the Ramsar Sites in the country while generating employment opportunities and supporting local livelihoods. 

• It was announced as part of the 2023-24 budget by MoEF&CC during June 2023.
• Emphasis On: It will emphasize on the importance of wetlands and their preservation, with an outlook that is inclusive of local communities as caretakers of the ecosystem.
• Implementation By: In convergence with various Central Government ministries and agencies, State Wetland Authorities, and a network of formal and informal institutions and individuals, working together for a common cause.
• Significance: A scheme that will be implemented over the next three years to encourage optimal use of wetlands, and enhance biodiversity, carbon stock, eco-tourism opportunities, and income generation for local communities.

Ramsar Sites

• For Wetlands: These are wetlands of international importance that have been designated under the criteria of the Ramsar Convention on Wetlands (1971) for containing representative, rare, or unique wetland types or for their importance in conserving biological diversity. 
  • Ramsar Convention is named after the city of Ramsar in Iran where it was signed on 2 February 1971.

List Of Total Ramsar Sites In India 2023 here.

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Wetlands

• Definition: As per the Ramsar Convention: Wetlands are “areas of marsh, fen, peat land or water, whether natural or artificial, permanent or temporary, with water that is static or flowing, fresh, brackish or salt, including areas of marine water the depth of which at low tide does not exceed six meters.”

News Source: PIB

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Context: Recently, India has ranked 7th in a report Climate Change Performance Index (CCPI) 2024, published on the sidelines of the ongoing COP28 at Dubai.

• The first three ranks in the ‘very high’ performance category remained vacant.

Climate Change Performance Index 2024: Key Highlights

• CCPI countries must have an emissions peak by 2025 to keep the 1.5°C goal in reach. 

About the Climate Change Performance Index (CCPI):

• An Annual Report: The Climate Change Performance Index (CCPI), is an annual report that has been prepared by Germanwatch, the New Climate Institute, and the Climate Action Network since 2005 with the involvement of nearly 450 climate and energy experts.

• Transparency Enabler: The Climate Change Performance Index (CCPI) is an instrument to enable transparency in national and international climate politics. 
• Framework Used: The Climate Change Performance Index uses a standardized framework to compare the climate performance of 63 countries and the EU, which together account for over 90% of global greenhouse gas emissions. 
• Assessment: 
  • The Climate Change Performance Index assesses each country’s performance in four categories: 
    • Greenhouse Gas (GHG) Emissions (40%), Renewable Energy(20%), Energy Use(20%), Climate Policy (20%).
• On the Basis of Actions: The analysis also reports on the extent to which each country is taking action in the areas of emissions, renewable energy, and energy use to achieve the climate goals set in Paris.
• Concerns: 
  • No Significant Improvement: There has hardly been any improvement in global performance to the duration and progress on reducing emissions. 
    • An analysis showed that of 64 countries assessed, 37 countries fluctuated compared to their performance last year. The positions of the five countries remained unchanged.  
  • Higher GHGs Emissions: Despite the urgent need to decarbonise all sectors, GHGs have increased in 2022 and atmospheric CO2 is now 50% higher than pre-industrial levels.

Top Positions Holder In Climate Change Performance Index 2024

Also Read: NDC Synthesis Report For 2023: UNFCCC

• Performance by Other Countries: 
  • Poor Performance by Most Developed Countries: Countries such as the United Kingdom, the United States, Italy and others performed poorly compared to last year. 
    • Italy slipped 15 positions in ranking, United Kingdom and France nine positions, Japan eight positions and the United States slipped back five positions. 
      • Germany and the European Union improved marginally.  
  • Worst Performers: Saudi Arabia is at the bottom (67th) in the performance list, the Islamic Republic of Iran occupied the 66th position while the host country United Arab Emirates occupied the 65th position.

India’s Performance in the Climate Change Performance Index

• Improvement in Ranking: India has been ranked seventh in climate performance during 2022, which showed an improvement of one spot over last year’s performance (ranked eighth).
• Effective Ranking: India is effectively in fourth position, as the first three ranks in the ‘very high’ performance category remained vacant.
• Achieved Score: 70.25 Percent
  • Last year, India scored 67.35 Percent.

• On Population and Policy: While India is the world’s most populous country, it has relatively low per capita emissions. 
• • India’s high population automatically reduces its per capita energy use.
• Challenges for India: 
  • High Reliance on the Use of Coal: India is trying to meet its Nationally Determined Contribution (NDC), with clear long-term policies in place that focus on promoting renewable energy, but India’s growing energy needs are still being met by its heavy reliance on coal, along with oil and gas.”
  • Cause of Pollution: The dependence on coal, oil, and gas is a major source of GHG emissions and causes severe air pollution, especially in the cities.
    • India is among the most air-polluted countries in the world.
• India’s Contribution: As per India’s Minister for Environment, Forest and Climate Change, “India is not only focused on progress at home but also on steering global commitments to build a sustainable world for the present and generations to come.”

Performance of BASIC Group

• BASIC Countries: It is an International Grouping formed by four newly industrialized countries Brazil, South Africa, India, and China. 
• These nations signed an agreement on 28th November 2009, which resulted in its formation.
• Besides India, other members of the group have also done reasonably well in the assessment.
  • China: 51st- Retained the same position 
  • Brazil: 23rd- Improved 15 positions 
  • South Africa: 45th- Slipped one position  

Must Read: World Climate Action Summit – COP28

News Source: Down to Earth

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Context: A private member bill was presented recently in Rajya Sabha which demanded a system to fix the accountability of Governors.

Removal of Governors: Private Bill Seeks Removal Power for Assemblies over Governors

• Power to Recall: The bill seeks to provide state assemblies the authority to recall governors.
• Election via Electoral College: It seeks amendments to the Constitution so that the Governor shall be elected by the members of an electoral college.
  • The electoral college should consist of Legislative Assemblies of the States and elected members of the Gram Panchayats, Municipalities, and Corporations of the States. 
• Method of Election: The election shall be held in accordance with the system of proportional representation and secret ballot.
• Security of Tenure: It proposed to set a five-year term for the governor’s office starting on the day the position is assumed, and the governor may resign by sending a letter to the speaker of the state assemblies. 
• Removal From office: The Governor may be removed from his office by a resolution of the Legislative Assembly of the State passed by a majority of not less than two-thirds of the members of the Assembly present and voting.

What is a Private Member Bill?

• About: It is a legislative proposal introduced by a member of the House who is not a minister.
  • The Private Bills introduced by the ministers are called Government Bills.
• Allocation of time in Lok Sabha: The House allots the last two-and-a-half hours of business every Friday for transactions of private members’ business, which includes Private Members’ Bills and Private Members’ Resolutions. 
• Allocation of time in Rajya Sabha: Two-and-a-half hours every alternate Friday during a Session is generally allotted.

News Source: The Hindu

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Context: According to Chinese State Media, China began commercial operations of the world’s first 4th generation nuclear reactor.

Nuclear Power Development in China

• China has a goal to produce 10% of electricity from nuclear power by 2035 and 18% by 2060. 
  • As of September 2023, China has not met its 2020 target to install 58 gigawatts of nuclear capacity.
• China has also not signed a pledge at the COP28 climate conference to triple nuclear power capacity by 2050.
  • A pledge to triple nuclear generation capacity by 2050 from the base year of 2020 was signed by 22 countries at the UN’s Climate Change Conference in Dubai, including the US, Canada, Japan, France, the UK, and the UAE. India is not part of this pledge 

Also Read: Nuclear Power Plants In India 2023

About the Shidaowan Plant: World’s First 4th Generation Nuclear Reactor 

• World’s First 4th Generation Reactor: China has begun commercial operations at Shidaowan nuclear power plant. 
• It is a 200-megawatt (MW) high-temperature, gas-cooled reactor (HTGCR) plant that uses a modular design. It uses Helium for cooling, unlike conventional reactors which use pressurised water.
  • Modular plants refer to those of less than 300MW plants that can be constructed off-site. They can operate in remote locations and power traditionally hard-to-abate heavy industry sectors, but they are too expensive.
• Significance: It is designed to be highly economical as it is fuel efficient, has enhanced safety, and minimizes waste. 

Different Generations of Nuclear Reactors

• Generation I: It includes the prototypes and the first industrial-scale reactors developed in the 1950s and 1960s and which were commissioned in the 1970s.

• Generation II: These reactors were commissioned from the 1970s onwards and were designed to improve competitiveness and energy independence due to the high price of fossil fuels (caused by the oil crisis). For example, this generation included pressurized water reactors (PWRs).
• Generation III: It emphasized safety and security, strengthening robustness to external risks by integrating operating experience from second-generation reactors. For example, the European pressurized reactor (EPR).
• Generation IV: The design of Generation IV reactors incorporates several technological advances, and research on these systems is being conducted. 
  • Criteria for this generation of reactors include sustainability, nuclear safety, economic competitiveness, and nuclear proliferation resistance.

News Source: Reuters

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Context: The Solar Ultraviolet Imaging Telescope (SUIT) instrument on board the Aditya-L1 spacecraft has successfully captured the first full-disk images of Sun in the 200-400 nm wavelength range.

SUIT Unveils Sun’s Secrets: Capturing Sun’s Photosphere and Chromosphere

• SUIT captured images of the Sun’s photosphere and chromosphere in this wavelength range using various scientific filters. Among the notable features revealed are sunspots, plage, and quiet Sun regions, providing scientists with pioneering insights into the intricate details of the Sun’s photosphere and chromosphere.

About Solar Ultraviolet Imaging Telescope (SUIT)

• Developed by:  Pune’s Inter-University Center for Astronomy and Astrophysics
• Objective: To study the Sun’s ultraviolet (UV) emissions and capture high-resolution images of the Sun’s atmosphere, known as the corona, in various UV wavelengths.
• It will operate in the far and near ultraviolet regions, covering wavelengths of 200-400 nanometers. 

Significance: SUIT observations will help scientists study the dynamic coupling of the magnetized solar atmosphere and assist them in placing tight constraints on the effects of solar radiation on Earth’s climate.

News Source: Business Standard

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Context: The Char Dham project in Uttarakhand, under which Silkyara tunnel is being developed, did not require an Environment Impact Assessment, the Union government told Parliament. 

Silkyara Tunnel Collapse Highlights

• A landslide caused a portion of the 4.5 km tunnel to cave in on November 12 leaving 41 men trapped for 16 days. They were brought out alive following a lengthy rescue operation.

Read more about the Uttarakhand Silkyara Tunnel Collapse here.

What is an Environment Impact Assessment?

• According to the UN Convention (1991), Environment impact assessment (EIA) is defined as “a procedure for evaluating the likely impact of the proposed activity on the environment.
• EIA systematically examines both beneficial and adverse consequences of the project and ensures that these effects are taken into account during project design.

Environment Impact Assessment (EIA): Background

• Genesis: Until the 1980s, most of the project activities were executed with minimum or without environmental consideration in India.
  • In 1976-77, Environmental Impact Analysis was started in India, when the Department Of Science And Technology was asked by the Planning Commission to examine the river-valley projects from the environmental angle.
• Regulatory Framework in India: The EIA Notification, issued under the Environment (Protection) Act 1986, delineates the process and requisites for conducting an Environmental Impact Assessment (EIA) for diverse project categories.
• Project Categorization: Projects are classified into two categories, A and B, based on their potential environmental impacts, with Category A projects requiring environmental approval without undergoing a screening procedure. In contrast, Category B projects undergo a screening procedure.
• Government Oversight: The Ministry of Environment, Forest, and Climate Change (MoEFCC) and State Environmental Impact Assessment Authorities (SEIAAs) play pivotal roles in implementing and overseeing the EIA process in India.

Environment Impact Assessment (EIA): Process

• Screening: Determines whether the environmental and social impacts of a proposed development project would be significant enough to develop an EIA.
• Scoping: Establish the boundaries of the Environmental Impact Assessment (EIA), set the basis of the analyses that will be conducted at each stage, describe the project alternatives, and consult the affected public
• Collection of data: The baseline data has to be collected which states the environmental status of a study area.
• Public hearing: Mainly after the completion of a project, certain groups of people living close by to a project are thereby informed of the same.
• Decision making: The discussion leads to the consulted authorities taking charge of the project to take it to a final decision.
• Risk assessment: Inventory analysis and hazardous property and index also lead to EIA procedures.

Environment Impact Assessment (EIA): Advantages 

• Integration of Environmental Considerations: It ensures that environmental considerations are explicitly addressed and incorporated into the development decision-making process. 
• Adverse Impact Mitigation: It anticipates and avoids, minimizes, or offsets the adverse biophysical, social, and other relevant effects of development proposals. 
• Preservation of Natural Systems: It protects the productivity and capacity of natural systems and the ecological processes that maintain their functions; and 
• Promotion of Sustainable Development: It promotes development that is sustainable and optimizes resource use and management opportunities. 

Environment Impact Assessment (EIA): Limitations

• Lack Of expertise in the team conducting Environmental Impact Assessment (EIA) studies in the concerned fields for developing EIA
• Improper scoping for the EIA
• No checks on the competence and liability of EIA consultancies.
• Lack of exhaustive ecological and socio-economic indicators.
• Lack of reliable data sources, and no credibility of the primary data collected by the data collectors.

News Source: DTE

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Context: Recent data from the Central Drugs Standard Control Organisation (CDSCO), shows that at least 6% of cough syrup samples from 54 Indian manufacturers failed a mandatory quality test for export. 

Cough Syrup Manufacturers Fails Quality Test For Export

• Gambia, Uzbekistan, Cameroon, and the World Health Organisation (WHO) raised red flags after children who had these drugs died prompting the Central government to take remedial action

• Faulty Samples: According to government data, of the 385 samples tested 51 were found to be NSQ (not of standard quality), while 29 out of 502 samples failed the quality test in another lab.
• Extent of Exports: India exported cough syrups worth USD 17.6 billion in 2022-23.

Drug Regulation in India

• Drug Cosmetics Act 1940: On April 10, 1940, the Drug & Cosmetics Act was passed to oversee medication imports into India, ensuring that no substandard or counterfeit drugs enter the country.
• Drug and Cosmetics Rules, 1945: Drug and Cosmetics Rules, 1945 categorized the drugs into schedules and provided regulations for the sale, storage, and prescription of each category.
• Central Drugs Standard Control Organisation (CDSCO)
  • Nodal Ministry: Ministry of Health & Family Welfare, Government of India.
  • It is the National Regulatory Authority (NRA) of India. 
  • Functions:
    • CDSCO is responsible for the approval of Drugs, Conduct of Clinical Trials, laying down the standards for Drugs, and control over the quality of imported Drugs in the country.
    • CDSCO along with state regulators is jointly responsible for granting licenses of certain specialized categories of critical Drugs such as blood and blood products, I. V. Fluids

Must Read: India Pharma Products And Drug Safety

Pharmaceuticals Regulation: Over Exports

• Good Manufacturing Practices (GMP): They cover things like the design of the manufacturing facility, training of employees, and quality control procedures.
• Drugs and Cosmetics Act: It controls the import, production, distribution, and sale of export pharmaceutical products and cosmetics.
• Schedule M: Schedule M is a part of the Drugs and Cosmetics Rules. It explains the detailed requirements for manufacturing and quality control of medicines.
• Pharma Export-Import Laws and Regulations: These rules include getting the required Importer-Exporter Code (IEC) and following export documentation requirements.

New Testing Parameters for Cough Syrups to be Exported From India

• Certificate of Analysis (CoA): The government has introduced updated testing parameters for cough syrups slated for export from India, necessitating the generation of a Certificate of Analysis (CoA) from designated laboratories.
  • Designated Labs: The specified central government labs include the Indian Pharmacopoeia Commission, regional drug testing lab (RDTL – Chandigarh), and the NABL (National Accreditation Board for Testing and Calibration Laboratories) accredited drug testing labs of state governments.

News Source: The Hindu

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Context: This article is based on the news “India Russia trade doubled to nearly $50 billion in Jan-Sept: Russian Ambassador” which was published in the Live Mint. The bilateral trade between India and Russia has doubled to almost $50 billion during January-September 2023.

Key Highlights On India Russia Trade

• Trade has increased by around 2.1 times in January- September this year, up to almost 50 billion USD owing to strong demand for hydrocarbons in India. 
  • This is expected to grow further and substantially surpass the figures of the previous year. 
• During April-May of FY 2023-24, India’s trade with Russia saw around a 161% increase compared with the same period last year.
• India and Russia have already achieved the bilateral trade target of $30 billion before the target year of 2025.
• According to Engineering Exports Promotion Council (EEPC) India, amid declining demand for engineering goods from major markets such as the US and China, shipments to Russia continued their uptrend and more than doubled to around US$ 123 million in July 2023 from around US$ 55 million in July 2022, a rise of about 122%. 

About India Russia Trade Relations:

• Time-Tested Bilateral Ties: Russia and India have been longstanding and time-tested partners. The Indo–Soviet Treaty of Peace, Friendship, and Cooperation was signed between India and the Soviet Union in 1971 which specified mutual strategic cooperation. 
  • India’s Foreign Minister described India’s relationship with Russia as among the steadiest of major relationships in the world.
• Enhanced Cooperation: Since the signing of the “Declaration on the India-Russia Strategic Partnership” in 2000, the ties have gained a qualitatively new character with enhanced levels of cooperation in almost all areas of the bilateral relationship. 
  • India and Russia have maintained cooperation in areas like politics, security, defence, trade and economy, science & technology, culture, and people-to-people ties.
• India-Russia Summit: During the Summit held in December 2021, 28 MoUs and agreements were signed. 
  • A Joint Statement titled “India-Russia Partnership for Peace, Progress and Prosperity” was also adopted.

India Russia Trade Relations: Significance 

• Increasing Bilateral Trade:  India and Russia are discussing a free trade agreement (FTA) involving the Eurasian Economic Union (EEU/EAEU), against the backdrop of bilateral economic ties seeing a sharp expansion since the start of the Ukraine conflict.
  • EAEU is a free trade agreement that came into being in 2015 to increase economic cooperation and raise the standard of living of its members. Member countries include Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.

• Diversifying Trade: India has diversified its export basket to Russia to include pharmaceuticals, fertilisers, coal, diamonds, chemicals, and ceramics, among other goods. 
  • Further Diversifying Export Basket:  By exploring possibilities in automobiles and spare parts, electronics goods, medical devices, solar photovoltaic modules, textiles, food and agricultural products, etc.
• New Trade Routes: The development of new trade routes like the Eastern Maritime Corridor and the Northern Sea Route will also be of interest in deepening trade ties. 
  • International North-South Transport Corridor (INSTC) is another effective connectivity initiative to increase Indo-Russian trade.
  • India and Russia are also discussing the possibility of launching a trans-Arctic container shipping line and processing facilities along the Northern Sea Route.
• New Bilateral Investment Treaty:  India and Russia are in advanced negotiations for a new Bilateral Investment Treaty (BIT) that is necessary to boost the confidence of investors. 
  • BITs are agreements between India and Russia designed to safeguard investments made by investors of both nations.
• Increasing India’s Presence in Russia’s Far East: Russia is keen for India to expand its presence at the Vladivostok port. Russia is eager to give the Chennai-Vladivostok Marine Corridor (CVMC) more impetus because it has the potential to strengthen marine relations between India and Russia.
  • The CVMC is being utilised to transport metallurgical coal, crude oil, and liquified natural gas from Russia to India.
  • India has expressed interest in building a satellite city near Vladivostok. 

India Russia Trade Relations: Challenges

• Trade Imbalance: The skewed trade balance has been an area of concern between India and Russia. 
  • For example, during FY23, India had around a $43 billion trade deficit with Russia, which left their exporters with large surpluses in their Vostro accounts in India.

• Challenges in Rupee- Ruble Trade: Indian refiners are using a mix of currencies to settle most of their Russian oil purchases. Both countries previously discussed trading in their local currencies but this is yet to take off because of currency volatility and the high trade deficit.
  • For example, the Rupee-Ruble trade since the Ukraine conflict has faced obstacles due to the accumulation of Rupees by the Russian side in India.
• Russia’s Over Dependence on China: China enjoys direct connectivity, advanced logistics supply, high level of trade and profitability with Russia. 
  • Since the beginning of Russia- Russia-Ukraine conflict, Russia-China cooperation has grown in all directions. 
  • The trade turnover between India and Russia reached a record $190 billion last year, increased by another 39% in the first quarter of this year compared with the same period in 2022. 
• Infrastructure and Connectivity Issues: Inadequate transportation infrastructure and connectivity can impede the smooth flow of goods between India and Russia. 
  • The absence of a direct trade route and high shipping cost make exports to Russia a costly affair for India, as it doesn’t share a land border with Russia, unlike China. 

Way Forward

• Addressing Trade Imbalance: A huge imbalance in trade heavily towards Russia is an issue in the Rupee-Ruble trade. To solve this problem, Russia is keen to import manufacturing equipment including machinery from India. Recently, the Russian President called for increasing mutual investments in pharmacy, manufacturing, and industry.

• Increasing Asia’s Importance for Russia: To compensate for the decline in trade with the West, Russia is looking much more toward Asia. 
  • For India, this could mean a broadening of our engagement that was overly reliant on the triad of military, nuclear, and space cooperation.
• Providing Solutions to Short- and Medium-Term Challenges in Business: Payments, logistics, and certification were some of the key areas of issues and it is possible to find solutions to them. 
  • For example, both sides found ways in the fertiliser trade last year in a much more mutually acceptable way. Many Russian and Indian companies have signed long-term contracts for the supply of fertilizers in demand in India
• Improving Rupee-Ruble Trade: To tackle the accumulation of Indian currency in Russia, increasing Rupee trade with third countries common to both India and Russia, where India has trade surplus can help in ensuring seamless money flow while solving the problem. 
  • For this, India has taken steps to de-dollarise trade while pushing for the internationalisation of Indian Rupee. 
  • Russia has also pitched for more use of national currencies in bilateral trade and called for ensuring smoother financial transactions between India and Russia. 
• India as China’s Alternative to Russia: Since the start of the Russia- Ukraine conflict, Russian raw material exports to China and imports of Chinese goods have sharply increased. Sanctions from Western countries made Russia vulnerable, which has prompted China to use its economic leverage, forcing humiliating and one-sided concessions. 
  • However, India provides Russia with a choice of reliable partners, capable of ensuring the inflow of necessary goods to the Russian market.

Also Read: Russia May Pull Out From the Comprehensive Nuclear Test Ban Treaty

Conclusion:

The evolving dynamics of India Russia trade relations underscore the need for strategic measures to overcome challenges, bolster economic ties, and chart a path towards a more resilient and diversified partnership in the international arena.

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Context: A Member of Parliament(MP) was dismissed from the Lok Sabha after the House accepted the Ethics Committee’s report, which found her guilty of engaging in unethical conduct.

Mahua Moitra Expelled as MP in Cash For Query Case

• Cash for Query: Mahua Moitra was accused of taking bribes in exchange for asking questions critical of the government in Parliament.
• Contempt of House: She was also declared to be in “Contempt of the House” for sharing the login information for her private and secret account on the legislative website.
  • A Contempt of the House can be defined as any act that:
  • Causes an obstruction in the conduct of proceedings of the House.
  • Obstructs the performance of functions by any officer or member of the House.
  • Any other act that directly or indirectly has such an effect.
• Legal Inquiry: It also called for a legal institutional inquiry by the Government in the case.

What is a ‘Cash for Query Case’?

• An allegation that someone accepted payment in exchange for asking questions in Parliament is known as a “cash for query” complaint.
• For Example “Cash for query” scam led to the conviction of eleven former Members of Parliament in 2005 for taking cash to ask questions in Parliament.

Timeline Of The Mahua Moitra Case

• 15 October: BJP MP Nishikant Dubey addressed a letter to the Lok Sabha Speaker accusing TMC MP Mahua Moitra of accepting bribes from Businessman Hiranandani in exchange for raising parliamentary questions.
• 19 October: Hiranandani in an affidavit to the Ethics Committee claimed that Moitra provided him with her parliament login credentials so that he could post questions directly on her behalf when required.
• 31 October: Lok Sabha Ethics Committee summons Mahua Moitra.
• 10 November: The Ethics Committee submitted its report to the Speaker, recommending Mahua Moitra’s expulsion. 
• 8 December: Ethics Committee report tabled in parliament. Ms Moitra was expelled following the tabling of the report.

Know more about Lok Sabha Ethics Committee Investigates MP for Cash For Query here. 

What challenges are associated with the Ethics Committee report?

• Authority to Inquire: The standard process for resolution of issues about privilege violations is taken by the Lok Sabha Committee on Privileges. The Ethics Committee can only investigate improper activity by MPs.
  • This case should have been inquired into by the Privileges Committee rather than the Ethics Committee.
  • Breach of privilege: If an MP has asked questions and has done parliamentary work on behalf of somebody who has paid a consideration, it is a serious breach of privilege and contempt of the House. 
    • A breach of privilege occurs when any person commits an act that violates the privileges granted to the members of Parliament or the Parliament itself. 
  • Penalising Non-Members: The Privileges Committee has the authority to penalise non-members. In this case, the Privileges Committee should look into Hiranandani’s alleged bribery of an MP. 
• No clear distinction between privileges and misconduct: Objections to committee selection are also due to the lack of clear distinction between what constitutes privileges and misconduct. 
  • For example, bribery could trigger privilege proceedings, as per the Supreme Court’s ruling in PV Narasimha Rao’s case (1998). 

• • However, in the 2005 “cash for query” scandal, bribery was categorised as misconduct by the inquiry committee. 
• Disclosure of e-portal login credentials: There are no clear guidelines prohibiting MPs from exchanging login credentials since the practice of online submission of questions is recent.
  • In the absence of a regulation, the scrutiny of a particular MP appears disproportionate and excessive. 
• Accepting large quantities of cash and gifts: The Committee arrived at a conclusive decision based on an affidavit that failed to address the vital issues of financial transactions and detailed information about lavish gifts.

Way Forward

• Single committee for privileges and ethics: As advised by the Committee on Privileges of the Eleventh Lok Sabha, privileges and ethics are interconnected and should be dealt with by a single committee.ie., the Committee on Ethics and Privileges. 
• Amendment of Lok Sabha rules:  The rule should have been amended when online submissions were allowed. Had there been a rule, some safeguards against violations would have been specified as well.
• Making a Distinction between Privilege and Misconduct: There is a need for a well-defined framework regarding what constitutes privileges and misconduct and what is the line of demarcation between them. 
• Code of Ethics for Ministers: Mahua Moitra has been found guilty of breaching a code of ethics that does not exist and there was no evidence of cash or gift given to her.
  • Thus,  it is necessary that in addition to the Code of Conduct, there should be a Code of Ethics so that Ministers uphold the highest standards of constitutional and ethical conduct.

Conclusion:

The expulsion of Mahua Moitra from the Lok Sabha in the Cash for Query case highlights the need for a comprehensive framework distinguishing between privileges and misconduct, advocating for a unified committee on ethics and privileges, and emphasizing the necessity of a clear Code of Ethics for elected representatives.

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