500 Most Probable Topics- List 6

1. Indian Space Policy 2023

• Aims to foster a commercial space presence with robust private sector involvement.

• Key Entities for Private Sector Participation:
  • InSPACe: Single-window clearance for space activities, technology sharing, and regulatory stability.
  • NSIL: Commercializes space technologies and assets, handles leasing and procurement from sectors.
  • Department of Space: Sets policy guidelines, manages international cooperation, resolves disputes.
  • ISRO: Focus shifts from manufacturing to R&D, advanced technologies, and major national projects like Chandrayaan and Gaganyaan.
• Private Sector Opportunities:
  • Non-Government Entities (NGEs) can manage comprehensive space activities including satellite operations and launch vehicles.
  • Engage in international activities like ITU filings.
  • Provide specialized solutions for security agencies, broadening space sector innovation and investment.

2. Minority Rights in the Indian Constitution

• Minority Rights in Indian Constitution:
  • No specific constitutional definition of “minority”; referenced in Articles 29 and 30.
• Article 29:
  • Protects distinct languages, scripts, or cultures of any citizen section.
  • Prohibits admission denial in state-maintained or state-funded educational institutions based on religion, race, caste, or language.
• Article 30:
  • Allows minorities (religious or linguistic) to establish and manage educational institutions.
  • State-directed not to discriminate against minority-managed institutions in granting aid.
• National Commission for Minority Educational Institutions (NCMEI) Act:
  • Protects educational rights of minorities as per Article 30(1).
• Minority Educational Institutions (MEIs):
  • Established by minorities to preserve culture; must be compensated if taken over by the state.
• Types of Minorities Defined:
  • Religious Minorities: Muslims, Christians, Buddhists, Sikhs, Jains, Zoroastrians (Parsis).
  • Linguistic Minorities: Defined by distinct mother tongues different from the majority in the region, not restricted to the Eighth Schedule languages.
• Language Education Rights:
  • Article 350-A obligates states to provide primary education in children’s mother language if they belong to a linguistic minority.
  • Article 350-B empowers the President to appoint a Special Officer for linguistic minorities’ interests.
• Minority Status Determination:
  • Handled by the central government under the National Commission for Minorities Act, 1992; states also have some determination rights.
• Relevant Case:
  • Aligarh Muslim University (AMU) and Banaras Hindu University (BHU) listed in the Union List, not classified as minority institutions.

3. Foreign Contribution Regulation Act – FCRA

• Overview :
  • Enactment: Introduced in 1976 during the Emergency to counter foreign interference in India.
  • Purpose: Regulate foreign donations to ensure they align with India’s democratic values.
• Amendments to FCRA:
  • 2010 Amendment: Strengthened oversight on foreign contributions, banning use for activities against national interest.
  • 2020 Amendment: Tightened restrictions on fund transfers between entities and reduced permissible administrative expenses from 50% to 20%.
• FCRA Registration:
  • Requirement: Mandatory for receiving foreign donations.
  • Scope: Applies to entities in cultural, economic, educational, religious, or social programs.
  • Bank Account: Must open a designated account at a specified SBI branch in New Delhi.
• Prohibitions Under FCRA:
  • Prohibits funding to fictitious entities, religious conversions, activities causing communal tensions or sedition, and restricts certain individuals (e.g., candidates, journalists, politicians) from receiving foreign funds.
• Validity and Renewal:
  • Duration: FCRA registration valid for five years; requires renewal within six months of expiry.
  • Cancellation: Registration can be cancelled for violations or inactivity, barring re-registration for three years.
• FCRA 2022 Rules:
  • Introduced changes increasing compoundable offences, raised the exemption limit for contributions from relatives abroad, and extended the deadline for bank account notifications.

4. Global Initiatives Against Maritime Piracy

United Nations Convention on the Law of the Sea (UNCLOS)

• Provides a legal framework to combat piracy under international law.
• The UN Security Council and General Assembly highlight the need for international cooperation to tackle piracy and armed robbery at sea, advocating for UNCLOS’s role in addressing maritime threats.
• Article 101 of the 1982 United Nations Convention on the Law of the Sea (UNCLOS) outlines acts constituting piracy.

Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation (1988)

• A multilateral treaty focusing on maritime safety.
• To ensure action is taken against individuals committing unlawful acts against ships.
• Adopted at the 1988 Suppression of Unlawful Acts (SUA) Convention in Rome.

Combined Maritime Forces (CMF)

• A multinational naval partnership.
• Dedicated to defeating terrorism, preventing piracy, enhancing regional cooperation, and ensuring maritime security.
• Membership: Comprises 39 member nations, including India, working collaboratively to safeguard maritime interests.

Operation Prosperity Guardian

• It is a United States- led multinational military operation that began in December 2023 to respond to Houthi attacks on shipping in the Red Sea.

5. Pradhan Mantri Suryodaya Yojana and Rooftop Solar Panels

• Launch: Recently initiated by the Indian Prime Minister to promote renewable energy.
• Objective: To install rooftop solar power systems in one crore households nationwide.

Rooftop Solar Panels

• Photovoltaic panels installed on building roofs, connected to the main power grid.
• Benefits:
  • Reduces grid electricity consumption, lowering electricity costs.
  • Allows surplus solar power to be exported back to the grid, offering monetary benefits to the consumer based on prevailing regulations.

Government Initiatives

• 2014 Rooftop Solar Programme: Aimed for a 40 GW rooftop solar capacity by 2022, but the target was not met, leading to an extension to 2026.
• Pradhan Mantri Suryodaya Yojana: A renewed effort to achieve the 40 GW rooftop solar target.

Current Solar Capacity in India

• Rooftop Solar Capacity: As of December 2023, total rooftop solar capacity is approximately 11.08 GW.
  • Leading States: Gujarat (2.8 GW), followed by Maharashtra (1.7 GW).
  • Sectoral Distribution: Only 20% of installations are in residential sectors, with the majority in commercial and industrial sectors.
  • Potential: CEEW report suggests India’s households could deploy 637 GW on rooftops, with one-third potentially meeting the entire residential electricity demand.
• Total Installed Solar Capacity: Around 73.31 GW as of December 2023.
  • Top States: Rajasthan leads with 18.7 GW, followed by Gujarat with 10.5 GW.

6. Schedule M of Drugs and Cosmetics Act

• Revised Pharma Manufacturing Rules (Schedule M): Union Health Ministry updated rules under Schedule M of the Drugs and Cosmetics Rules, 1945, focusing on enhancing quality control in the pharmaceutical and biopharmaceutical sectors.
• Schedule M and GMP: Defines Good Manufacturing Practices (GMP); latest revisions ensure adherence to these standards, covering all aspects of manufacturing quality from materials to facility environment; GMP introduced in 1988, with significant previous amendment in 2005.
• Amendment Details: Expanded GMP to ‘Good Manufacturing Practices and Requirements of Premises, Plant and Equipment for Pharmaceutical Products’.
• Significance of Revisions: Aim to strengthen quality control in India’s pharmaceutical manufacturing.
• Key Introductions in Revised Rules: Include Pharmaceutical Quality System (PQS), Quality Risk Management (QRM), Product Quality Review (PQR), and measures for equipment qualification and validation; introduction of computerized storage systems for secure drug documentation.
• Manufacturer Responsibilities: Ensure product suitability, compliance, safety, and quality; verify ingredients through testing; retain samples for retesting.
• Structure of Revised Schedule M: Comprises 13 parts detailing comprehensive GMP guidelines for various pharmaceutical manufacturing aspects.
• New Drug Categories: Includes drugs with hazardous substances like sex hormones, steroids, cytotoxic substances, biological products, and radiopharmaceuticals.
• Implementation Timeline: Medium and small manufacturers (turnover under ₹250 crore) have 12 months to implement; large manufacturers (turnover over ₹250 crore) have six months.

7. e-SAKSHI Application

• It was launched for revised fund flow procedure under Members of Parliament Local Area Development Scheme (MPLAD) Scheme.
• It will bring forth a myriad of benefits, revolutionizing the way Members of Parliament engage with and manage development projects in their constituencies.
• It would offer convenience and accessibility, allowing MPs to propose, track, and oversee the projects at their fingertips.

8. Vishwakarma Yojana

• Objective: Aims to uplift traditional craftsmen, especially from the OBC community, by preserving the guru-shishya parampara.
• Benefits: Artisans receive a PM Vishwakarma certificate, an identity card, and collateral-free credit up to ₹3 lakh across two tranches at a 5% interest rate.
• Budget and Support: Allocated ₹13,000 crore to ₹15,000 crore for five years (2023-2028), offering stipends for skill training and tool purchases.
• Scope: Targets 18 traditional trades in rural and urban areas, including carpentry, boat-making, and tailoring.
• Registration: Can be completed at common service centers, with funding from the central government and support from state governments.
• Integration: Aims to integrate artisans into domestic and global value chains for better market access.

9. Self Help Group (SHG) Bank Linkage (BL) Project

• Started by NABARD in 1992, the world’s largest microfinance project.
• Objective: Facilitates financial inclusion by enabling banks to open savings accounts for SHGs.
• Components: Includes training for bank managers, deploying Bank Sakhis at rural branches, implementing Community Based Repayment Mechanisms (CBRM), and providing SHGs with credit linkage for bank loans.
• Key Success Factors: Governed by annual Master Circulars from RBI and NABARD; sets minimum loan amounts for SHGs with adaptable provisions; continuous training for staff and community cadres under SRLMs; financial education via Financial Literacy Community Resource Persons; Bank Sakhis aid SHG transactions; and a web portal integrating data from banks’ Core Banking Solutions to mitigate information asymmetry.

10. Public Debt in India

• Definition: Public Debt refers to the liabilities of the Central Government that are charged against the Consolidated Fund of India, as per Article 292 of the Constitution.
• Current Status:
  • Central Government Public Debt: Stood at 57.1% of GDP as of March 2023.
  • General Government Debt: Accounted for 81% of GDP in the fiscal year 2022-23, encompassing the debt of Central and State Governments, and UTs with legislature.
  • Internal Debt Composition: Comprised 94.6% of the total Public Debt at the end of March 2022.

11. Off-Budget Borrowings in India

• Definition: Borrowings by Indian governments not recorded in the budget, require budget resources for repayment but are excluded from fiscal indicators.
• Mechanism: Executed by public institutions under government direction; examples include past Food Corporation of India (FCI) loans for food subsidies, discontinued from FY 2020-21.
• Reasons for OBB:
  • Bypass Fiscal Deficit Targets: To avoid fiscal deficit limits set by the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.
  • Avoid Borrowing Limits: To circumvent constraints under Article 293(3) of the Constitution regarding state government borrowing with outstanding Centre loans.
  • Funding Challenges: Used to address delays in central grants or reductions in other revenue streams.
• Implications of OBB:
  • Hidden Liabilities: Represents concealed obligations, potentially leading to a debt trap.
  • Reduced Accountability: Lack of scrutiny over OBBs decreases financial accountability and transparency.
• Methods of OBB: Include National Savings Schemes, Government Fully Serviced Bonds, and borrowings from domestic or foreign markets.

12. Government Securities (G-Secs)

• Definition: G-Secs are tradable instruments issued by the Central or State Governments, representing the government’s debt obligation.
• Risk Profile: Known for their low risk of default, G-Secs are considered risk-free, gilt-edged instruments.
• Features of Dated G-Secs:
  • They offer a fixed or floating interest rate (coupon) paid on the face value.
  • Interest is typically disbursed on a semi-annual basis.
  • The maturity period of these securities varies widely, ranging from 5 to 40 years.

13. Sovereign Green Bonds

Green Bonds

• Green bonds are financial instruments issued to fund projects with environmental or climate benefits, including renewable energy, clean transportation, and green buildings.
• The funds raised through green bonds are specifically allocated for green projects, differentiating them from standard bonds where proceeds can be used for various purposes.
• Since their inception in 2007, the international green bond market has seen cumulative issuance exceeding USD 1 trillion. By the end of 2020, 24 national governments had issued sovereign green bonds totaling USD 111 billion.

Significance of Sovereign Guarantee to Green Bonds

• Climate Action Signal: Sovereign green bonds demonstrate a country’s commitment to climate action and sustainable development.
• Market Development: They help in the development of domestic green bond markets by attracting institutional investors.
• Benchmark Pricing and Liquidity: Sovereign green bonds provide benchmark pricing, enhance market liquidity, and serve as a model for local issuers, promoting the growth of the green bond market at a local level.

14. Open Market Operations (OMOs)

• OMOs are activities where the RBI buys or sells government securities in the open market to regulate liquidity in the economy.
• Aimed at adjusting rupee liquidity on a durable basis to maintain desired financial conditions.
• Mechanism:
  • Excess Liquidity: RBI sells securities to absorb excess liquidity from the market.
  • Tight Liquidity: RBI purchases securities, injecting liquidity into the market.
• Role in Monetary Policy: OMOs are a key quantitative tool used by the central bank to influence the total money supply in the economy.

15. GST Council

• Constitutional Basis: Established under Article 279A of the Indian Constitution by the President of India as a joint forum of the Centre and States.
• Composition:
  • Chairperson: Union Finance Minister.
  • Member: Union Minister of State in charge of Revenue or Finance.
  • Members: Ministers in charge of finance or taxation from each state government, or any other minister nominated by state governments.
• Functions: Serves as the apex body to modify, reconcile, or recommend changes on GST matters, including taxable or exempt goods and services, and model GST laws.
• Decision-Making Process: Decisions require a majority of at least three-fourths of weighted votes.
  • Vote Weightage: The Centre holds one-third of the total votes, while all states collectively hold two-thirds.
• Consensus: All decisions within the GST Council are reached through consensus, ensuring collaborative governance.

16. Tax to GDP Ratio

• Definition: The Tax to GDP ratio measures the proportion of a country’s tax revenue (including both direct and indirect taxes) relative to its Gross Domestic Product (GDP).
• Current Figures: For FY23, the Tax to GDP ratio stands at approximately 11.1%, with Direct Taxes contributing 6% and Indirect Taxes accounting for 5.1%.
• Significance: This ratio is a crucial indicator of a country’s ability to generate tax revenue in relation to the size of its economy. A decline in the Tax to GDP ratio can suggest a slowdown in economic growth.

17. Reasons for Low Tax Base in India

• Presence of a large informal sector which largely deals in cash and makes tracking difficult.
• Tax exemption for agriculture, which is the primary income source for nearly 60% of Indians.
• High incidence of tax litigation: About 5 lakh cases pending in the country are because of tax litigation.
• Lack of technical expertise and resources (financial and manpower) resulting in less effective tax administration.

18. National Statistical Office – NSO

• Operates under the Ministry of Statistics and Programme Implementation (MoSPI); formed by merging National Sample Survey Office (NSSO) and Central Statistical Office (CSO) on May 23, 2019; includes the Computer Center.
• Responsibilities:
  • Nodal Agency: Central body for development of India’s statistical system, setting norms and standards for statistical methodologies and data dissemination.
  • Coordination: Manages statistical activities across government departments and State Statistical Bureaus (SSBs), provides methodological advice.
  • National Accounts: Prepares and publishes national accounts, including national product, expenditures, capital formation, and State Domestic Product (SDP).
  • International Liaison: Maintains connections with global statistical organizations such as UNSD, ESCAP, SIAP, IMF, ADB, FAO, and ILO.
  • Key Publications: Compiles and releases the Index of Industrial Production (IIP) and conducts the Annual Survey of Industries (ASI).
  • Economic Censuses: Organizes all-India Economic Censuses and follow-up enterprise surveys.
  • Sample Surveys: Executes large-scale sample surveys on socio-economic aspects including employment, consumer expenditure, and health.
  • Technical Evaluation: Reviews technical aspects of survey reports, sampling designs, and survey feasibility studies.
  • Data Dissemination: Distributes statistical information through publications, disseminates data to international organizations.
  • Support to NGOs: Provides grants-in-aid to NGOs and research institutions for conducting studies, surveys, and organizing statistical events.

19. Periodic Labour Force Survey

• The Periodic Labour Force Survey (PLFS) 2022-23 showed an increase in Labour Force Participation Rate (LFPR) from 55.2% to 57.9%.
  • Male LFPR: 78.5%
  • Female LFPR: 37%
• PLFS was initiated by the National Sample Survey Organization (NSSO) in 2017.
• Its main aim is to annually measure key employment and unemployment indicators like LFPR, Worker Population Ratio (WPR), and Unemployment Rate (UR).
• Evaluates employment status based on:
  • ‘Current Weekly Status’ (CWS) for urban areas quarterly.
  • ‘Usual Status’ and CWS for both rural and urban areas annually.

Key Indicators used in PLFS

• Labour Force Participation Rate (LFPR): Proportion of individuals working or seeking work in the total population.
• Worker Population Ratio (WPR): Share of employed people in the total population.
• Unemployment Rate (UR): Share of unemployed individuals among those in the labour force.
• Activity Status: Defined by the person’s activities during a certain period before the survey.
  • Usual Status: Based on activities over the past 365 days.
  • Current Weekly Status (CWS): Based on activities in the last 7 days.

Key Findings in PLFS 2023

• Largest work hours gap among self-employed: 50% more for men.
• Smallest work hours gap in regular wage workers: 19%.
• Men’s earnings exceed women’s across all employment types, with the largest disparity among the self-employed.
  • Male self-employed workers’ earnings were 2.8 times higher than females’.
  • Male regular wage earners received 24% more than females.
• Rural women’s LFPRs have risen, particularly among the self-employed. However, average weekly work hours for these women dropped from 37.1 in 2019 to 30.1 in 2023.

20. CENTRAL BANK DIGITAL CURRENCY/ Digital Rupee

• Digital equivalent of paper currency, legally backed by a central bank, and exchangeable one-to-one with fiat currency.
• Operates within a legal framework, distinct from unregulated cryptocurrencies.
• Transactions facilitated through blockchain-backed wallets.
• Concept influenced by Bitcoin but differs by being state-issued and having legal tender status.
• Objectives:
  • Reduce risks and costs associated with managing physical currency.
  • Offer an alternative to unregulated cryptocurrencies for transactions.
• Global Adoption:
  • Bahamas introduced Sand Dollar as the first nationwide CBDC in 2020.
  • Nigeria launched eNaira in 2020.
  • China piloted e-CNY in April 2020, leading among major economies.

Significance of CBDC:

• Revolutionizes Cross-Border Transactions:
  • Enables instant settlement, reducing time and cost.
  • Enhances security, transparency, and inclusivity.
  • Supports global economic growth, trade, and financial inclusion.
• Combines Traditional and Innovative Elements:
  • Merges digital currency convenience with the stability of traditional banking.
  • Reduces currency handling costs, leading to a cultural shift towards digital currency.
• Promotes Financial Inclusion:
  • Facilitates transition from informal to formal economy for better tax compliance.
  • Expands financial services access, furthering financial inclusion.

21. SEBI Launches IRRA for Investor Safety:

• SEBI introduced the Investor Risk Reduction Access (IRRA) to safeguard investors against technical issues with trading members or stock brokers.
• Role of Trading Members/Stock Brokers: Act as intermediaries in financial markets, facilitating transactions like buying and selling securities on behalf of investors.

IRRA Platform:

• Purpose: To mitigate investor risks during technical glitches at a trading member’s end, including both primary and disaster recovery sites.
• Functionality: Enables investors to square off/close open positions and cancel pending orders during technical outages, not for placing new orders.
• Development: Joint effort by BSE, NSE, NCDEX, MCX, and MSE.
• Mechanism:
  • Trading members can invoke IRRA during technical issues impacting client services.
  • Stock exchanges can also proactively enable IRRA based on monitoring connectivity, order flow, and social media, even without a trading member’s request.
  • Activation by exchanges in case of widespread service disruptions among trading members across all exchanges.

22. Guarantee Scheme for Corporate Debt and Corporate Debt Market Development Fund

• Government Approval for GSCD: Indian government approved the Guarantee Scheme for Corporate Debt (GSCD) to support the corporate bond market during stress periods; SEBI issued operational and management guidelines for the scheme and related fund.
• Guarantee Scheme for Corporate Debt (GSCD):
  • Provides full guarantee cover for debts raised by the Corporate Debt Market Development Fund (CDMDF).
  • Enhances investor confidence and ensures stability in the corporate debt market.
  • Managed by the Guarantee Fund for Corporate Debt (GFCD), under the Department of Economic Affairs and the National Credit Guarantee Trustee Company Ltd.
  • Function: Assists CDMDF in buying investment-grade corporate debt securities during market disruptions, promoting secondary market liquidity and stability.

23. Corporate Debt Market Development Fund (CDMDF):

• • • An alternative investment fund, close-ended scheme designed to support India’s corporate debt market.
    • Serves as a backstop for investment-grade corporate debt securities, enhancing market stability and investor confidence.
    • Backstop facility valued at Rs 33,000 crore, with Rs 30,000 crore from the government and Rs 3,000 crore from Asset Management Companies (AMCs).
    • Aims to improve secondary market liquidity via a permanent institutional mechanism, providing a safety net during market disruptions.

24. Social Stock Exchange

SGBS Unnati Foundation (SUF) Lists on Social Stock Exchange (SSE):

• SUF becomes the first entity to be listed on SSE, focusing on vocational training for underprivileged and unemployed youth (18-25 years).
• SUF is a not-for-profit organization founded in 2011, now leveraging SSE for fundraising through Zero Coupon Zero Principal Instruments.

Social Stock Exchange (SSE):

• Introduced in the Union Budget 2019-20 as a platform for social enterprises and welfare organizations to raise capital.
• Social enterprises are non-loss, non-dividend entities aimed at solving social issues.
• Operates under SEBI’s oversight.
• Purpose: Facilitates capital raising for social and voluntary organizations through equity, debt, or mutual fund units, promoting financial independence from foreign aid.
• Innovative Fundraising: SEBI allows social enterprises on SSEs to issue Zero Coupon Zero Principal Bonds (ZCZP) for funding.

25. Zero Coupon Zero Principal- ZCZP Bonds

• Zero Coupon Zero Principal (ZCZP) Bonds are bonds that do not offer interest or principal repayment, functioning essentially as donations.
• These bonds can be listed on the SSE for NPOs or on main or SME exchanges for for-profit organizations and are transferable to legal heirs in dematerialized form.
• Benefits include enhanced transparency and accountability in fund use for social goals, and increased visibility and credibility for social enterprises, fostering continued public support based on outcomes.

26. SCOMET Items

• Refer to Special Chemicals, Organisms, Materials, Equipment, and Technologies with dual-use potential, meaning they can be utilized in both civilian and military contexts.
• Regulation: Governed by India’s Foreign Trade Policy to control the export of sensitive items and technologies.
• Export License Requirement: Exporters must secure a license from the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce, for exporting any items listed under SCOMET.

27. India’s Appeal Against WTO Ruling:

• Context: India has appealed a WTO dispute settlement body decision, which found India in breach of its commitment to zero tariffs under the Information Technology Agreement (ITA).

WTO Dispute Settlement:

• Dispute Resolution Methods:
  • Mutual agreement between parties.
  • Adjudication, including panel and Appellate Body reports implementation.
• Dispute Settlement Stages:
  • Consultations: Initial discussions between parties to resolve the issue.
    • If unresolved, either party can request a dispute settlement panel.
  • Adjudication: Involves panel rulings, which can be appealed to the WTO’s Appellate Body.
    • The Appellate Body’s functionality is currently hindered due to the US blocking new appointments.
  • Implementation: Enforces the ruling, with countermeasures possible if parties fail to comply.

India’s Stance on IT Product Tariffs at WTO:

• Background: EU, Chinese Taipei, and Japan filed a WTO dispute against India in 2019 for imposing tariffs on ICT goods like mobile phones and broadcasting equipment, alleging a breach of the 1996 ITA commitments.
• India’s Argument:

• • India contended that at the ITA’s signing, modern products like smartphones didn’t exist, thus not covered under the tariff elimination commitment.
  • Asserted that the decision to increase import tariffs on mobile phones has spurred significant investments, notably from major companies like Apple and Foxconn, bolstering India’s mobile phone exports to potentially exceed $10 billion annually.

28. Developing Countries in the WTO:

• Membership Composition: The majority of WTO members are classified as developing or least developed countries, based on self-identification.

• Self-Identification: The WTO does not have fixed definitions for “developed” and “developing” countries. Members declare their own status, which can be contested by other members.

Advantages of Developing Country Status:

• Rights and Benefits: Developing countries enjoy certain privileges, such as extended transition periods for implementing agreements and eligibility for technical assistance.
• Generalized System of Preferences (GSP):. That a WTO member announces itself as a developing country does not automatically mean that it will benefit from the unilateral preference schemes of some of the developed country members such as the Generalized System of Preferences (GSP). In practice, it is the preference giving country which decides the list of developing countries that will benefit from the preferences.

Why in news? China got the ‘developing country’ status at the World Trade Organisation (WTO).

• It has become a contentious issue with a number of countries raising concerns against the decision.

29. World Bank’s Migration and Development Brief

• The World Bank’s Migration and Development Brief, crafted by its Migration and Remittances Unit, is issued semi-annually to provide updates on migration trends, remittance flows, and policy changes.
• The brief includes medium-term forecasts for remittance inflows to developing countries and details recent advancements related to the Global Compact on Migration (GCM).
• The 2023 report highlights India, Mexico, China, the Philippines, and Egypt as top remittance recipients, with the United States being the primary source of these remittances.
• Remittances to low- and middle-income countries grew by 3.8%, totaling $669 billion, supported by strong labor markets in advanced and GCC economies.
• Regional trends noted a decline in remittance flows in the Middle East and North Africa, especially Egypt, and a 1.4% decrease in Europe and Central Asia.
• Future concerns include a potential real income decline for migrants in 2024 due to inflation and low growth prospects.
• The report emphasizes leveraging diaspora bonds to utilize diaspora savings for stable development funding.

30. Liberalised Remittances Scheme (LRS) Taxation:

• New Tax Implementation: A 20% Tax Collection at Source (TCS) on LRS remittances by the Reserve Bank of India is set to be implemented, excluding remittances for education and medical purposes.

• Allowance: Indian residents can remit up to USD $250,000 per financial year for various transactions, with RBI approval required for amounts exceeding this limit.
• Inception: The LRS was introduced by the RBI on February 4, 2004.

• Individuals Only: The scheme is available to individual Indian residents, including minors, but not to corporates, partnership firms, HUF, trusts, etc.

• Frequency: No limit on the number of remittances, but the total annual limit is USD $250,000.
• Types of Permitted Transactions:
  • Opening foreign currency accounts abroad,
  • Acquiring immovable property and making overseas investments,
  • Extending loans to NRIs who are relatives,
  • Covering expenses for private visits, maintenance of relatives, medical treatment, and education abroad.

• TCS on Outward Remittance: Introduced in the Union Budget 2023, a 20% TCS applies to LRS remittances for purposes other than education and medical care.
• Taxation on Profits: Profits from foreign investments under LRS are taxable in India, with the tax rate depending on the duration of the investment.

31. Credit Rating in India:

• Regulatory Body: The Securities and Exchange Board of India (SEBI) oversees credit rating agencies under the SEBI (Credit Rating Agencies) Regulations, 1999.
• Credit Rating Agencies: India hosts seven main credit rating agencies:
  • CRISIL
  • CARE
  • ICRA
  • Acuité Ratings
  • Brickwork Rating
  • India Rating and Research Pvt. Ltd.
  • Infomerics Valuation and Rating Pvt. Ltd.

Functions of Credit Rating Agencies:

• Information Provision: Offer timely data and impartial opinions to market participants.
• Market Efficiency: Contribute to the financial market’s growth and efficiency by providing transparency.
• Creditworthiness Assessment: Evaluate and rate the creditworthiness of individuals and companies, aiding in informed decision-making for investors and lenders.

32. IMF’s Proposal for Quota Increase:

• IMF Quota Increase Approval: The IMF’s executive board approved a 50% increase in member quotas, maintaining the current proportionality among members.
• Objective of Quota Increase: To enhance the IMF’s permanent resources, emphasizing its quota-based nature and reducing reliance on borrowed resources.
• India’s Position in IMF:
  • Quota: Holds the 8th largest, with SDR 13,114.4 million, accounting for 2.75% of total quotas.
  • Votes: Possesses 132,063 votes, which is a 2.63% share.
• Function of Quotas:
  • Determines member’s contribution to IMF resources.
  • Affects voting power on IMF decisions.
  • Influences the amount of financial assistance a member can receive.
  • Dictates the allocation of Special Drawing Rights (SDRs) among members.
• Special Drawing Rights (SDR):
  • An international reserve asset to supplement the official reserves of IMF members.
  • Serves as a potential claim on the freely usable currencies of IMF members.
  • Value is based on a basket of currencies: US Dollar, Euro, Chinese Yuan, Japanese Yen, and British Pound, ensuring it reflects global financial market dynamics.

33. Phosphorous Shortage

• India is the largest importer of phosphorus, primarily from cadmium-laden deposits in West Africa.
• Historical Fertilization Evolution:
  • Early Practices: Early agricultural societies used natural fertilizers like fish remnants and guano to replenish soil nutrients.
  • 19th Century: Development of synthetic fertilizers identifying essential elements like nitrogen, phosphorus, and potassium.
  • Green Revolution: Synthetic fertilizers significantly increased global food production in the mid-20th century.
• Contemporary Challenges with Phosphorus:
  • Scarcity and Geopolitics: Limited phosphorus reserves concentrated in regions like Morocco and Western Sahara pose geopolitical challenges.
  • Cadmium Contamination: Health risks from cadmium in phosphorus reserves; costly removal processes.
  • Legislation and Supply Issues: EU regulation of cadmium levels and export restrictions by countries like China increase demand for safe phosphorus sources.
  • Agricultural Impact: Dependence on phosphorus imports, particularly with high cadmium content, poses challenges for crops susceptible to cadmium absorption.
• Market Disruptions and Concerns:
  • Limited Cadmium-Free Reserves: Few countries have significant cadmium-free phosphorus reserves, tightening global supply.
  • Export Restrictions and Geopolitics: China’s 2020 export restrictions and EU’s halt on Russian imports have intensified phosphorus demand.
  • Policy Impacts: Sri Lanka’s synthetic fertilizer ban, shifting to organic farming, led to reduced yields and contributed to a national crisis.
• Environmental Consequences of Phosphorus Overuse:
  • Runoff and Eutrophication: Overuse leads to runoff into water bodies, causing eutrophication and harmful algal blooms.
  • Health Risks: Algal toxins can cause respiratory and other health issues.
  • Energy-Intensive Extraction: Phosphate mining and processing contribute to greenhouse gas emissions and environmental degradation.
• Sustainable Phosphorus Management Strategies:
  • Precision Agriculture: Applies technology for precise phosphorus application, reducing waste.
  • Balanced Fertilizer Use: Promotes integrated use of alternative and chemical fertilizers.
  • Recovery Technologies: Develops methods to extract phosphorus from waste.
  • Circular Economy: Encourages phosphorus recovery and recycling to reduce mining dependency.
  • Global Cooperation: Advocates for international collaboration in phosphorus management.
• Precision Agriculture (PA): Utilizes precise input amounts for increased yields, contrasting traditional methods like crop rotation and intercropping.

34. 6th Census of Minor Irrigation Schemes Highlights:

• Total Schemes: 23.14 million minor irrigation (MI) schemes reported, with a 1.42 million increase from the previous census.
• Groundwater vs. Surface Water: 94.8% are groundwater schemes; 5.2% are surface water schemes.
• Dominant Types: Dug-wells lead, followed by shallow, medium, and deep tube-wells.
• State Leaders: Uttar Pradesh tops MI schemes, with Maharashtra leading in dug-wells and surface schemes.
• Private Ownership: 96.6% of MI schemes are privately owned; 18.1% of individual schemes are owned by women.
• Financing: 60.2% funded by a single source, predominantly from personal savings.

Minor Irrigation Scheme :

• Definition: MI schemes irrigate up to 2,000 hectares using surface or groundwater.
• Categories: Divided into groundwater (dugwells, tube wells) and surface water (surface flow, lift schemes).
• Purpose: Provide controlled irrigation for high-yielding crops, are labor-intensive, and require reasonable investment.

35. Social Impact Fund (SIF)

• It is envisioned as a government-led multistakeholder initiative to fast-track DPI implementation in the global south.
• This fund will offer financial support to provide upstream technical and non-technical assistance to countries in developing DPI systems.
• It offers a platform for all relevant stakeholders, including other governments, international organizations, and philanthropic entities, to contribute to this fund and help accelerate the achievement of the Sustainable Development Goals (SDGs) in Low- and Middle-Income Countries (LMICs) through DPIs.
• India has pledged an initial commitment of $25 million.

36. Regional Rapid Transit System (RRTS)

• First RRTS train, Namo Bharat RapidX, began operations from Sahibabad to Duhai Depot in Uttar Pradesh.
• System Characteristics:
  • Speed: Operates at speeds of 160 km/hour, with a design capability of up to 180 km/hour, significantly faster than metro trains.
  • Network: Part of an integrated mass transit system aimed at ensuring balanced and sustainable urban development across the National Capital Region (NCR).
• Construction and Management: Constructed by the National Capital Region Transport Corporation (NCRTC), a joint venture of the Central government with the governments of Delhi, Haryana, Rajasthan, and Uttar Pradesh.
• Model: Inspired by international systems like the RER in Paris, Regional-Express trains in Germany and Austria, and SEPTA Regional Rail in the U.S.
• Development Phases:
  • Phase I: Includes three corridors under construction: the 82-km Delhi-Ghaziabad-Meerut, the 164-km Delhi-Gurugram-SNB-Alwar, and the 103-km Delhi-Panipat.
  • Future Plans: Eight corridors planned in total.
• System Significance:
  • Speed and Efficiency: Offers faster travel options compared to metros, ideal for longer distance commutes across the NCR.
  • Comparison to Indian Railways: Covers smaller distances at higher frequency and greater comfort, targeting daily commuters needing quick transit.

37. INSURANCE SURETY BONDS

Why in news- It is the first time this innovative instrument (Insurance Surety Bond) is being utilized as a Bank Guarantee (BG) in the road infrastructure sector for monetization of bids.

Insurance Surety Bonds

• Insurance Surety Bonds (ISB) are three-party contracts where the surety (usually an insurance company) guarantees the performance or obligations of the principal (contractor) to the obligee (project owner).
• They serve as a security mechanism for infrastructure projects, protecting both the contractor and the project owner.
• In April 2022, the Insurance Regulatory and Development Authority allowed the use of ISBs as an alternative to traditional bank guarantees.

38. MARKET COUPLING

• The Union Ministry of Power has instructed the Central Electricity Regulatory Commission (CERC) to start the process of “market coupling” for power exchanges to standardize prices across different platforms.
• Market coupling involves creating a single government-owned power trading entity that aggregates and matches buy and sell bids from all power exchanges in India to find a uniform market clearing price (MCP).
• Currently, India has three power exchanges: Indian Energy Exchange Limited (IEX), Power Exchange India Limited (PXIL), and Hindustan Power Exchange Limited (HPX), with IEX holding nearly 90% market share and different MCPs across these exchanges.
• The introduction of market coupling is aimed at achieving the “One Nation, One Grid, One Frequency, One Price” framework through the Market-Based Economic Dispatch (MBED) mechanism, which involves centralized scheduling for dispatching electricity throughout the country, covering both inter-state and intra-state levels.

39. Transfer Pricing and Arm’s Length Transactions

• Transfer pricing is an accounting method used to set prices for transactions between related entities within a larger corporate group, such as divisions, subsidiaries, or affiliates.
• The practice is often employed to minimize the total tax liability of a parent company by manipulating prices: higher prices are set for transactions in high-tax jurisdictions (thereby reducing taxable profits there), and lower prices in low-tax jurisdictions (increasing profits and taking advantage of lower tax rates).

Arm’s Length Principle

• The Arm’s Length Principle (ALP) dictates that prices for goods or services exchanged between related company entities should mirror those that would be set between unrelated, independent entities, ensuring transactions reflect market value.
• ALP aims to prevent tax base erosion and the shifting of profits to low-tax jurisdictions by ensuring transactions between related parties are conducted as if they were between independent entities, without any preferential treatment due to their relationship.

40. IS 18267:2023

The Bureau of Indian Standards (BIS) has introduced a significant standard, IS 18267: 2023, for food serving utensils made from agri by-products. This standard aims to reduce plastic pollution, promote sustainability, and bring numerous benefits to various stakeholders.

41. Coastal Aquaculture Authority (Amendment) Bill, 2023

• Coastal Aquaculture Authority (Amendment) Bill, 2023 approved by both Houses of Parliament in India.
• Aim: Clarify that coastal aquaculture is permitted within Coastal Regulation Zones (CRZs), simplifying procedures for small and marginal farmers.
• Bill replaces potential imprisonment with penalties to decriminalize civil transgressions in coastal aquaculture.
• Broadens definition of “coastal aquaculture” to include all related activities, ensuring comprehensive regulation.
• Encourages environmentally friendly practices like cage and seaweed culture within CRZs.
• Addresses operational ambiguities in the principal act, promoting ease of doing business.
• Amends administrative procedures for better efficiency and accountability in the Coastal Aquaculture Authority.
• Supports the development of genetically improved and disease-free aquaculture stocks.
• Introduces global best practices for sustainable and competitive coastal aquaculture.
• Empowers the Coastal Aquaculture Authority to enforce environmental compliance and prohibit activities in sensitive areas.
• Background: The original act from 2005 aimed to balance environmental protection with the growth of coastal aquaculture, leading to significant industry success and job creation.

42. India surpasses China in Inland Capture Water Fisheries

• India surpasses China as the largest contributor to inland capture water fisheries, ranking among the top three fish-producing countries globally.
• Significant growth in aquaculture and capture fisheries attributed to strategic projects and the ₹20,500 crore Prime Minister’s Matsya Sampada Yojana.
• India holds 8% of global fish production, making it the second-largest aquaculture producer, third-largest fish producer, and fourth-largest seafood exporter.

Inland fisheries in India > Marine fisheries production

43. National Turmeric Board

Government of India has notified the establishment of a National Turmeric Board in the state of Telangana.

• Established to increase awareness and consumption of turmeric and develop new markets internationally to increase exports.
• The proposed board is to work under the aegis of the Ministry of Commerce .Bottom of Form

Key facts about Turmeric (Curcuma longa) 

• It is a perennial herbaceous plant belongs to the ginger family (Zingiberaceae).
• Climatic conditions required
  • Soil and climate: A friable well drained red loamy soil in wet or garden lands under tropical conditions is ideal.
  • Rain: It can be grown in regions receiving an annual rainfall of 1500 mm.
  • Temperature: range of 20 to 35 °C.
• India is the largest producer, consumer and exporter of turmeric in the world.
• The largest producing states of Turmeric are Maharashtra, Telangana, Karnataka and Tamil Nadu.

44. Social Impact Bonds- NABARD

• Social Impact Bonds (SIBs) leverage private investments to tackle social issues, offering a novel approach to social challenges.
• NABARD has successfully raised Rs 1,041 crore through a social impact bond with a 5-year maturity and a 7.63% coupon rate.
• This bond is notable as the first AAA-rated Indian Rupee social bond, externally certified, highlighting its high creditworthiness as assessed by CRISIL and ICRA.
• SIBs foster partnerships among government entities, social service providers, and private investors to address specific social problems like homelessness, education, or recidivism.
• Private investors provide the necessary capital for social programs through a Special Purpose Vehicle (SPV), with returns dependent on achieving targeted social outcomes, making SIBs a high-risk investment option.

45. The Mines and Minerals (Development and Regulation) Amendment Bill, 2023

• The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, amends the 1957 Act to regulate the mining sector, including reconnaissance, prospecting, and mining activities.
• The Bill expands reconnaissance to include previously prohibited sub-surface activities like pitting, trenching, drilling, and sub-surface excavation.
• Introduces an exploration licence for specified minerals, allowing for reconnaissance, prospecting, or both, and declassifies six minerals from atomic minerals ((i) beryl and beryllium, (ii) lithium, (iii) niobium, (iv) titanium, (v) tantallium, and (vi) zirconium), opening them up for private exploration.
• The exploration licence, valid for five years with a possible two-year extension, will be granted through competitive bidding by state governments, covering up to 1,000 square kilometers initially, with a retention of 25% area after three years.
• Licence holders must submit geological reports within three months after the licence expires or operations conclude.
• If exploration proves successful, the state government must auction a mining lease within six months, giving the exploration licence holder a share in the auction value, as prescribed by the central government.
• The central government will conduct auctions for composite licences and mining leases for critical and strategic minerals, although concessions will be granted by state governments.

46. National Geoscience Data Repository Portal:

• It is a comprehensive online platform for accessing, sharing, and analysing geospatial information across India.
• The NGDR initiative was spearheaded by the Geological Survey of India (GSI) and Bhaskaracharya Institute of Space Applications and Geoinformatics (BISAG-N).
• It represents a significant leap forward in democratising critical geoscience data, empowering stakeholders across industries and academia with unprecedented access to invaluable resources.

47. Global Digital Public Infrastructure Repository (GDPIR)

• The Global Digital Public Infrastructure Repository (GDPIR) was developed by the Ministry of Electronics & Information Technology.
• Its primary aim is to bridge the knowledge gaps regarding the design, construction, deployment, and governance of Digital Public Infrastructures (DPIs).
• GDPIR compiles information in a standardized format from various countries and organizations that have successfully developed DPIs at scale.
• It includes detailed elements like maturity scales, source codes (where available), and governance frameworks.
• As of now, GDPIR features 54 DPIs from 16 different countries, providing a rich resource for learning and collaboration in the development of DPIs.

48. BHARAT NCAP

• The Bharat New Car Assessment Programme (Bharat NCAP) is an indigenous star-rating system introduced by the Ministry of Road Transport and Highways to evaluate vehicle safety in collisions, effective from October 1, 2023.
• Bharat NCAP tests passenger vehicles (up to 8 seats plus the driver’s seat, gross vehicle weight ≤ 3,500 kgs) using Frontal Offset, Side Impact, and Pole-Side Impact Tests, assigning safety ratings from one to five stars.
• The program is voluntary, encouraging manufacturers to nominate vehicles for testing to enhance vehicle safety standards in the Indian market.
• Bharat NCAP evaluates vehicles based on Adult Occupant Protection, Child Occupant Protection, and Safety Assist Technologies.
• Mandatory testing may occur for base models of popular variants (≥30,000 units sold) or upon the Ministry’s recommendation due to market feedback or public safety concerns.
• Bharat NCAP aligns with global standards, drawing inspiration from the Global NCAP and evolving over the years to enhance vehicle safety, with Tata achieving India’s first 5-star car rating in 2018.

49. Special Economic Zones (SEZ) (Fifth Amendment) Rules, 2023

• The Indian government is considering regulatory amendments to offer fiscal incentives for renewable energy projects, especially green hydrogen, within Special Economic Zones (SEZs).
• Proposed changes include allowing SEZs to span multiple non-contiguous areas to accommodate green hydrogen projects, deviating from the current requirement of a contiguous 50-hectare land area.
• These amendments aim to provide fiscal benefits to renewable energy plants within SEZs used for captive consumption, which are currently ineligible for such benefits when not selling power outside SEZs.

50. PUShP portal:

• A High Price Day Ahead Market (HP-DAM) and Surplus Power Portal (PUShP) was launched by the Ministry of Power.
• It was launched to ensure greater availability of power during the peak demand season at a price higher than the ceiling of Rs 12 per unit by certain category of sellers.
• The power distribution companies (DISCOMs) will be able to indicate their surplus power in block times / days / months on portal. 
• Those DISCOMs who need power will be able to requisition the surplus power.
• The new buyer will pay both variable charge (VC) and fixed cost (FC) as determined by Regulators. Once power is reassigned, the original beneficiary shall have no right to recall as entire FC liability is also shifted to the new beneficiary. 
• This will reduce the fixed cost burden on the DISCOMs, and will also enable all the available generation capacity to be utilized.

Day Ahead Market

• It is a physical electricity trading market where power is delivered within 24 hours of the next day starting from midnight.
• They are traded in 15 minute time blocks and the prices and quantum of electricity closed the auction bidding process.