New IUCN report titled “Toward a Regenerative Blue Economy” shows way toward Regenerative Blue Economy

• The primer report is the result of a joint effort between IUCN Commissions, Secretariat and partners under the France-IUCN Partnership (2021-2024).
• The  report was developed in the context of the Sustainable Blue Economy project, led by experts from the Ecosystem-based Aquaculture Specialist Group (E-bAG) of the IUCN Commission on Ecosystem Management (CEM).  
• The new IUCN report proposes a clear definition and founding principles for a “Regenerative” Blue Economy. It defines different sustainability levels within the overall umbrella and sets ambitions for nature and society alike.

Blue Economy:

• Definition:  It is the sustainable use of ocean resources to benefit economies, livelihoods and ocean ecosystem health.
• The Blue Economy is a sector, expected to be worth some $1.5 trillion a year, as per the World Bank.
• Activities of Blue Economy:  It include maritime shipping, fishing and aquaculture, coastal tourism, renewable energy, water desalination, undersea cabling, seabed extractive industries and deep sea mining, marine genetic resources, and biotechnology.

Types of Blue Economy:

IUCN has defined three types of Blue Economy-

• Brown Blue Economy or Ocean Economy: This is a type of Blue Economy rooted in the maritime sector and includes traditional activities of the maritime sector. It is anthropocentric and based on a conventional economic model.
• Blue Economy is here associated with traditional accounting consisting of micro- and macroeconomic profitability and social (including employment) indicators:
• The Sustainable Blue Economy: At the United Nations Conference on Sustainable Development (UNCSD) Rio+20 Summit, 2012 the “Blue Economy” was recognised as encompassing all economic activities in the marine sector, provided that these were consistent with sustainable development.
• Focus: The focus is to protect, repair, and restore marine and coastal ecosystems and ecosystem services are integrated along with the traditional focus on driving marine Economy.
• Accounting: Success is measured in the form of environmental assessments, and key performance indicators (KPIs), has been added to traditional conventional accounting for the Blue Economy. 
• The Regenerative Blue Economy: It is an inclusive framework which advocates for ‘blue justice’, and is based on the broad principles of the ecosystem approach
• Definition:  It is an economic model that combines rigorous and effective regeneration and protection of the ocean and marine and coastal ecosystems, with sustainable sea-linked and low-carbon economic activities, and fair prosperity for people and the planet, today and tomorrow.
• Economic activities: Activities such as oil extraction or deep-seabed mining (DSM) are excluded from the regenerative economy scope. Other sectors such as fishing, aquaculture, and tourism will also need to adapt their practices. 
• Success indicator: New indicators like the ‘Ocean Impact Navigator’, have been proposed as a way to evaluate the positive impact of the Regenerative Blue Economy on ocean and coastal socio-ecological systems. 

Government Initiatives to promote blue economy:

• National Policy for India’s Blue Economy-2021: It aims to enhance contribution of the blue economy to India’s GDP, improve lives of coastal communities, preserve marine biodiversity, and maintain the national security of marine areas and resources.
• Fisheries and Aquaculture: The government is promoting the holistic development of the sector through initiatives like the Fisheries and Aquaculture Infrastructure Development Fund, and creation of a dedicated Ministry for Fisheries, Animal Husbandry and Dairying in 2019.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY): It aims to bring about Blue Revolution through  plugging  critical gaps in infrastructure—right from production, technology use to post-harvest management
• Sagarmala scheme: It lays ground for port-led development in the country with its focus on port modernisation and extended connectivity by providing states financial assistance
• Tourism: National Maritime Heritage Complex is being established in Lothal. MV Ganga Vilas today is the world’s longest river cruise service. An International Cruise terminal is coming up in Mumbai
• Samudrayaan project: It is under the Deep Ocean Mission. MATSYA 6000, a manned deep submersible vehicle, will be  utilised for deep sea exploration of rare sea minerals, polymetallic manganese nodule resources, and study deep-sea biodiversity.
• Maritime India Vision 2030:  Under the vision for this decade, the government has planned over 150 initiatives across various maritime sub-sectors like ports, shipping and waterways

Inheritance tax in India?

How to tax wealth?

• There are three approaches of wealth taxation, based on
• Returns with a capital income tax: There can be a capital levy on income from wealth or ownership of assets resulting in capital gains
• Stocks with a wealth tax: It is linked to the value of owned assets as a one-time levy
• Transfers of wealth: In the form of wealth tax, inheritance tax, estate tax, or gift tax at the time of transfer of wealth or assets.

Inheritance/ Estate Tax:

• Definition: It is a tax levied on the total value of money and property of a deceased person before it is distributed to their legal heirs.
• The tax is typically calculated based on the value of the assets left behind after any exemptions or deductions
• The duty had a threshold of Rs 1 lakh, and progressive rates from 5% to 40% on the principal value of the estate exceeding Rs 20 lakh.
• Purpose: Inheritance tax is levied as a tool for redistribution of wealth to address income inequality.

Does India have an inheritance tax?

• In 1953, India’s Parliament had passed the Estate Duty ‘Death Tax’ Act, which was later abolished in 1985 by the Rajiv Gandhi government.
• As per the Act, tax/duty was imposed on the principal value of movable and immovable property, including agricultural land, passed on to any person after the death of the owner of such property. The Act was applicable only if the property-owning person died as an adult (i.e. completed 18 years of age).
• Estate duty was applicable only on inherited properties with a value above the exclusion limit set by the Act, and the tax rate was calculated as per the market value at the time of death.
• The properties on which this duty was applied included immovable and movable property owned by the deceased in India and outside, which were passed on to a successor – if the person died when domiciled in India. If not, estate duty was levied only on immovable property in India and all movable properties; immovable properties outside India were not taxed. The Act was amended in 1960 to exclude properties in Odisha, West Bengal, and Jammu & Kashmir, and further in 1968, 1982, and 1984 to include amendments made by other Finance laws.
• After implementation, the death duty imposed peaked up to 85%, making it highly unpopular. In 1985, the then Finance Minister V.P. Singh abolished it as the income generated for the Centre via such taxes was much less than the cost incurred due to the administrative process in executing it.
• As of date, there is no tax imposed on property inherited, whether through a will or by intestate succession.

Methods of inheritance tax:

• Will of succession: It is a document in which the deceased person has pre-declared the lawful owner of his/her assets.
• Inheritance by nomination: A person can declare a person of his/her choice as the nominee. The nominee then becomes the lawful owner of an asset and the benefit it generates.
• Inheritance by joint ownership: If any asset lies under the joint ownership of two or more people, the survivor(s) get to manage the asset post death of the other owner(s).
• India also had a wealth tax and a gift tax, which were abolished in 2015 and 1998 respectively.

Reason for abolishing Estate Duty/ wealth Tax and Gift Tax:

• Procedural harassment: Taxpayers were being unduly harassed with the existence of two separate taxes on property ie. wealth tax (before death) and estate duty (after death)
• Unmet objectives: There was no reduction in the unequal distribution of wealth whereas, the tax did not assist states in financing their development schemes significantly either.
• Economies of scale: While the yield from estate duty is only about Rs 20 crore in 1985, whereas its cost of administration and collection was relatively high.
• Tax Evasion: High rates of taxation often results in flight of capital and investment to tax havens or tax jurisdictions with favorable tax rates.

Comeback:

• Wealth Tax: Wealth tax was replaced with an additional surcharge of 2% on the super rich with a taxable income of over Rs 1 crore.
• Gift Tax: It was reintroduced in 2004 with gifts from unrelated persons above the threshold of Rs 25,000 (later raised to Rs 50,000) only being taxable as income. Gifts from blood relations, lineal ascendants and descendants, and gifts on occasions like marriage are exempt.

Global Scenario:

• Inheritance Tax across the globe: Japan has the highest inheritance tax rate with 55 per cent in the world followed by South Korea with a rate of 50 per cent.
• This is in stark contrast to several other countries. According to leading financial firm Pricewaterhouse Coopers (PwC), most European, American and even African nations levy inheritance tax. In Europe, the top nations levying tax on inherited properties are — France (60%), Germany (50%), United Kingdom (40%), Spain (33%) and Hungary (18%). Other countries with high inheritance taxes are Japan (55%), South Korea (50%), Ecuador (37%), Chile (25%), South Africa (25%) and Taiwan (20%)
• Inheritance tax plays a significant role in shaping economic policies and social welfare systems, influencing decisions on wealth transfer and intergenerational equity.

Case of Global Minimum Corporate Tax Rate:

• 140 countries plus have agreed  to implement a new global tax agreement  proposed by the Organisation for Economic Co-operation and Development (OECD), which imposes a minimum effective rate of 15% on corporate profits. 
• The deal intends to remove the incentive for nations that operate as tax havens for corporate giants with the OECD estimating the Global Minimum Tax (GMT) policy to  reduce under-taxed profits by around 80%.
• Calls to tax billionaires: A proposal in the US to levy a minimum 25% tax on taxpayers with wealth over $100 million. France and Brazil have pushed for a G20 declaration on taxing the super rich by July.

The prime minister of India addressed the 6th edition of the International Conference on Disaster Resilient Infrastructure 2024.

• During India’s G20 Presidency, a Disaster Risk Reduction Working Group was established.
• The focus of this group was on financing disaster risk reduction efforts.
• These efforts, combined with the growth of CDRI, will pave the way for a more resilient future.

International Conference on Disaster Resilient Infrastructure:

• ICDRI is the flagship annual conference of the Coalition for Disaster Resilient Infrastructure (CDRI).
• Objective: Its primary aim is to enhance global dialogue and collaboration on disaster and climate resilient infrastructure.

Highlights of ICDRI 2024:

• Theme of 2024: ‘Investing today for a more resilient tomorrow.’
• He said that Disasters and their effects do not recognize borders and in today’s interconnected world, disasters and disruptions have far-reaching consequences.
• He highlighted the significance of Investing in resilient infrastructure for a better future.

Coalition for Disaster Resilient Infrastructure:

• CDRI is an independent international organization
• It is a Platform for Collaboration where countries can share knowledge and resources.
• Objective:  To enhance the resilience of infrastructure systems against the impact of disasters.
• Establishment Date: CDRI was established in 2019 during the United Nations Climate Action Summit in New York.
• It is India’s second major global initiative after the International Solar Alliance (ISA) in 2015 Paris climate change conference.
• Members: 39 countries and 7 organizations.
• CDRI’s programs fund projects in vulnerable regions, including resilient housing and enhanced early warning systems.

Significance for India:

• India on the World Stage : CDRI offers India an opportunity to establish itself as a leader in global climate action and disaster resilience efforts.
• It enhances India’s soft power on the international stage.
• Greater Significance: The initiative holds significance beyond economic considerations as
• It aligns with broader goals such as disaster risk reduction, Sustainable Development Goals (SDGs), and climate agreements.
• This alignment promotes sustainable and inclusive growth for all.

Reason for Investment in Resilient Infrastructure:

• Sustainable Development:  Investing in resilient infrastructure contributes to achieving the UN’s Sustainable Development Goals (SDGs) by promoting long-term economic, social, and environmental well-being.
• Increased frequency and severity of natural disasters: Disasters cause immense damage to infrastructure, displacing people, disrupting essential services, and jeopardizing health and safety.
• Thus, there is a need to invest in resilient infrastructure to reduce the severity of natural disasters.
• Long-term impact beyond economic losses: Disasters have a devastating human cost, destroying homes, livelihoods, and disrupting communities.
• Rebuilding infrastructure with resilience in mind can minimize this long-term suffering.
• Global interconnectedness: Disasters in one region can have cascading effects worldwide
• Therefore, there is a need for collective efforts as a collective effort towards resilient infrastructure globally strengthens everyone’s preparedness.
• Protecting the most vulnerable: Developing nations and small island states often face a higher risk of disasters.
•  Investing in resilient infrastructure in these regions safeguards their vulnerable communities.

NASA greenlights the 2028 launch for its Dragonfly Rotorcraft Mission to Saturn’s organic-rich moon Titan.

Dragonfly Mission:

• It is Scheduled to be launched in July 2028 by NASA.
• Dragonfly marks the first time NASA will fly a vehicle for science on another planetary body.
• The car-sized “dual-quadcopter” Dragonfly rotorcraft, which is being built by the Johns Hopkins Applied Physics Laboratory (APL) in Laurel, Maryland, will reach Titan in 2034.
• The rotorcraft has eight rotors and flies like a large drone.
• It will cover tens of kilometers on Titan in under an hour, which is a massive distance as far as currently available extra-planetary rotorcraft are concerned.
• It will fly to dozens of promising locations on Titan, looking for prebiotic chemical processes common on both Titan and the early Earth before life developed.
• It will spend most of its time on the Titan’s surface making science measurements.
• It will use a radioisotope power system (Because the hazy atmosphere on Titan will make it difficult to use solar power)  like the Curiosity rover on Mars.

About Titan (Moon of Saturn):

• It is an icy world whose surface is completely obscured by a golden hazy atmosphere.
• Titan is the second largest moon in our solar system & Saturn’s largest moon.
• It is the only moon in the solar system with a dense atmosphere, and the only place besides Earth that has standing bodies of liquid, including rivers, lakes and seas, on its surface.
• Like Earth, Titan’s atmosphere is primarily nitrogen, plus a small amount of methane.
• It is the sole other place in the solar system known to have an earthlike cycle of liquids raining from clouds, flowing across its surface, filling lakes and seas, and evaporating back into the sky (akin to Earth’s water cycle).
• Titan is also thought to have a subsurface ocean of water.

Ideal Place for Exploration:

• Titan’s dense and calm atmosphere coupled with its low gravity makes flying an ideal way to travel to its different parts.
• Titan is an ideal place to study the conditions necessary for habitability in an extraterrestrial environment.
• Even if we don’t find signs of life there, there is a chance we could observe the kind of chemical interactions that happened before life developed on Earth.

India’s External Affairs Minister joined the 1st ‘ASEAN Future Forum’ virtually.

ASEAN Future Forum:

• Proposed at the 43rd ASEAN Summit in 2023,which was held at Jakarta, Indonesia.
• Objective: To serve as a platform for member states and partners to exchange ideas and policy suggestions.
• Goal: To influence ASEAN’s developmental trajectory positively & formulate its Strategic Plans with focus on ASEAN Community Vision 2045.
• Initiated and hosted in: Hanoi, Vietnam.
• Theme:  “Toward fast and sustainable growth of a people-centered ASEAN Community.”

EAM emphasized the Significance of India with ASEAN:

• Key Pillar of India’s Indo-Pacific Vision: ASEAN holds a central position in India’s Act East Policy.
• India supports ASEAN unity and centrality, viewing a strong and unified ASEAN as vital in shaping the regional Indo-Pacific architecture.
• Synergy between ‘India’s Indo-Pacific Oceans Initiative’ (IIPOI) and the ASEAN Outlook on Indo-Pacific (AOIP) provides a strong framework of cooperation, including and addressing challenges to comprehensive security.
• Support for ASEAN Centrality: The Quad initiative complements ASEAN-led mechanisms, offering people-centric benefits such as infrastructure and scholarships while recognizing ASEAN’s central role in regional prosperity.

Commitment to Regional Stability:

• India’s accession to the Treaty of Amity and Cooperation in Southeast Asia underscores its commitment to maintaining peace, prosperity, and stability in the region.
• Initiatives like the ASEAN-India Maritime Exercise and India’s Security and Growth for All in the Region (SAGAR) highlight India’s role as a net security provider.
• Upholding International Laws: Both India and ASEAN emphasize the importance of upholding the UN Convention on the Law of the Seas (UNCLOS) and collaborate on addressing global challenges such as climate change, transnational crimes, and health and food security.
• Promoting Diverse and Resilient Supply Chains: Recognizing the vulnerabilities exposed during the Covid19 pandemic, India and ASEAN advocate for diverse, secure, transparent, and resilient supply chains.
• Multifaceted Cooperation: India and ASEAN collaborate through various sub-regional mechanisms, including the Mekong-Ganga Cooperation and BIMSTEC, enhancing economic and cultural ties.
• Advocating for Global South Perspective: India, as G20 President, emphasized the importance of the Global South’s perspective in international affairs which helps to foster cooperation and coordination between India and ASEAN in navigating the multipolar world order.

Ban on MDH, Everest products: Spices Board mulls mandatory testing of consignments to Singapore, Hong Kong.

• Certain spices of Indian brands facing ban in Singapore and Hong Kong due to quality concerns, the Spices Board said it will start mandatory testing of such consignments destined to these two countries.
• The ministry has sought details from the two firms — MDH and Everest — whose products have been banned for allegedly containing pesticide ‘ethylene oxide’ beyond permissible limits.

Spices Board India:

• It is the statutory organization constituted on 26th February 1987, under the Spices Board Act 1986.
• It was formed with the merger of the erstwhile Cardamom Board and Spices Export Promotion Council.
• The Board functions as an international link between the Indian exporters and the importers abroad and it has been involved in various activities which touch upon every segment of the spices sector.

Main functions:

• The Spices Board is responsible for the overall development of cardamom (small and large) in terms of improving production, productivity and quality.
• The Board is also implementing post-harvest improvement programmes for improving quality of the 52 scheduled spices for export.
• The various development programmes and post-harvest quality improvement programmes of the Board are included under the head ‘Export Oriented Production’.
• Promotion of organic production, processing and certification of spices
• Development of spices in the North East
• Provision of quality evaluation services
• Nodal Ministry: Ministry of Commerce & Industry, Government of India.