EDITORIALS & ARTICLES

October 29, 2024 Current Affairs

Asthamudi Lake

  •  Ashtamudi Lake, a backwater lake in Kerala, was the site of a concerning environmental incident, as hundreds of dead fish were found floating in the water, triggering panic among local residents. 
  • Although isolated reports of fish deaths had occurred in the area previously, this marks the first instance of such a massive die-off in the lake''s history.

Causes of mass fish mortality: 

  • Local residents suspect that leachate contamination is to blame for the fish mortality, citing the potential dumping of large volumes of waste into the lake. 
  • The recent mass die-off of fish in Ashtamudi Lake has been linked to the discharge of toxic substances into the water. These pollutants have significantly reduced the oxygen levels in the lake, leading to the death of a large number of fish downstream.
  • The contamination has also resulted in the production of harmful gases and elevated levels of hazardous compounds, including hydrogen sulfide, ammonia, and heavy metals.

Ashtamudi Lake

  • Ashtamudi Lake is a prominent backwater lake located in the Kollam district of Kerala, and is one of the most visited in the state.
  • The lake’s surroundings were pivotal in the 14th century as a major port area, connecting the ancient city of Quilon (Kollam) to international trade routes.
  • This made Quilon an important trading hub in Kerala during the medieval period. Ibn Battuta, the Moroccan traveler and explorer, mentioned Quilon as one of the key trading centers, emphasizing the strategic and economic importance of the city and the lake.
  • Ashtamudi Lake is the second largest estuary ecosystem in Kerala, after the Vembanad Lake.
  • Its name, derived from the Malayalam word “Ashtamudi”, meaning “eight braids”, reflects the lake’s octopus-shaped topography, with multiple interconnected branches.
  • Ashtamudi boasts a unique wetland ecosystem, supporting rich biodiversity, including numerous species of fish and shellfish.
  • The lake is part of Kerala’s backwaters, renowned for its houseboats and resorts that attract thousands of tourists each year. The Kallada River serves as the primary water source for Ashtamudi Lake, contributing to its brackish water ecosystem.
  • Ashtamudi Wetland was designated a Ramsar site in 2002, recognising its international importance for wetland conservation and sustainable utilization, particularly for fishing and tourism.
  • In 2014, the Clam Governing Council of Ashtamudi became the first Marine Stewardship Council (MSC) certified fishery in India for its sustainable clam fishing practices, a significant achievement for responsible resource management.
  • Ashtamudi Lake is home to various mangrove species, including two endangered species, Syzygium travancoricum and Calamus rotang, highlighting its ecological value in preserving rare and vulnerable flora. These species thrive in the marshy regions of the lake, contributing to the unique biodiversity of the wetland.

Challenges of India''s Fertilizer Sector

  • The ongoing crises in Ukraine and Gaza have raised concerns about the stability of global fertilizer markets, directly impacting India, one of the world''s largest agricultural producers.

Current State of India''s Fertilizer Sector

  • India''s fertilizer sector is grappling with a significant supply-demand imbalance.
  • Despite being one of the largest consumers of fertilizers globally, the country relies heavily on imports to meet its agricultural needs.
  • The recent report by the Standing Committee of Parliament on Chemicals and Fertilizers indicated that domestic production is insufficient to meet the demand for fertilizers, particularly for Di-Ammonium Phosphate (DAP) and Muriate of Potassium (MOP).

Current Import Fertilizer Scenario: The Standing Committee''s August 2023 report shed light on the dependency on imports. It noted that:

  • Approximately 20% of India''s urea requirement is met through imports.
  • About 50-60% of DAP and 100% of MOP needs are satisfied through foreign sources.
  • The dependence on imports is especially concerning given the geopolitical tensions in regions like Eastern Europe and West Asia, which could disrupt supply chains and inflate prices.

How Has India’s Fertilizer Production Changed?

  • In the 2021-22 agricultural year, India consumed around 579.67 lakh metric tonnes (LMT) of major chemical fertilizers, compared to 629.83 LMT in 2020-21. Production figures reveal a persistent shortfall:

Urea: Produced 250.72 LMT; consumed 341.73 LMT.

DAP: Produced 42.22 LMT; consumed 92.64 LMT.

MOP: Entirely imported; no domestic production.

  • The production of chemical fertilizers has seen only marginal growth over the past seven years, with an increase of about 50 LMT from 2014-15 to 2021-22. Despite the establishment of new urea plants under the 2012 investment policy, India’s production capacity still falls short of its requirements.

Challenges Facing the Sector

  • Dependence on Imports: The significant reliance on imports for key fertilizers like DAP and MOP exposes India to global market fluctuations and geopolitical instability.
  • Production Capacity Constraints: Existing fertilizer manufacturing facilities are not sufficient to meet domestic demand, leading to shortfalls and increased reliance on imports.
  • Rising Prices: The ongoing crises in Ukraine and Gaza are causing oil prices to rise, directly affecting the cost of fertilizers and impacting farmers'' operational costs.

Required Measures

  • Experts and policymakers recommend several strategic measures to enhance India''s fertilizer sector:
  • Increase Domestic Production: There is an urgent need to expand the production capacity of indigenous fertilizer plants. Investments should be encouraged in both public and private sectors.
  • Policy Initiatives: The government must create a conducive environment for investments in fertilizer manufacturing, including incentives for private players.
  • Adoption of Sustainable Practices: Encouraging the use of alternatives like nano urea and promoting natural farming methods can help reduce dependence on chemical fertilizers.
  • Improving Supply Chain Resilience: Developing robust supply chains for raw materials and fostering partnerships with other nations can mitigate the risks associated with global supply disruptions.
  • Investment in Research and Development: Innovating new fertilizer technologies and enhancing the efficiency of existing fertilizers can significantly improve agricultural productivity.

 What are Fertilisers ?

  • Fertilisers are basically food for crops, containing nutrients necessary for plant growth and grain yields.
  • Balanced fertilisation means supplying these following nutrients in the right proportion, based on soil type and the crop’s own requirement at different growth stages.
  • Primary (N, phosphorus-P and potassium-K)
  • Secondary (sulphur-S, calcium, magnesium)
  • Micro (iron, zinc, copper, manganese, boron, molybdenum)
  • India is among the world’s largest buyers of fertiliser, besides China, Brazil, and the US.

India imports four types of fertilisers:

  • Urea
  • Diammonium phosphate (DAP)
  • Muriate of potash (MOP)
  • Nitrogen-phosphorous-potassium (NPK)

Fertilizer Consumption

  • Overall fertilizer consumption in the country rose 2.6% to 60 million tonne in 2023-24,
  • DAP consumption increased to 105.31 lakh MT from 92.64 lakh MT in 2021-22.
  • However, NPK consumption in the country exhibited a declining trend, falling to 107.31 lakh MT from 125.82 lakh MT in 2020-21.
  • Total urea consumption during 2022-23 year was nearly 35.7 million tonne.
  • In 2023-24, India’s consumption of conventional urea is estimated to decline by 2.5 million tonne due to increase in the demand of nano urea (liquid form of the farm chemical) ,government’s efforts to curb use of agricultural chemicals through natural farming
  • Integrated Nutrient Management (INM): This approach advocates for soil test-based balanced and integrated utilization of chemical fertilisers along with organic sources like Farm Yard Manure (FYM), city compost, vermi-compost and bio-fertilisers.
  • Paramparagat Krishi Vikas Yojana (PKVY): Cluster formation, training, certification and marketing are supported under the scheme to a farmer towards organic inputs.

What is Nutrient-Based Subsidy (NBS) scheme?

  • The NBS (Nutrient-Based Subsidy) scheme, introduced in 2010, is designed for fertilisers other than urea.
  • Urea, being the most widely used fertiliser, is not covered under the NBS scheme. Its pricing and subsidy are handled separately by the government.
  • Market-determined MRPs: Unlike urea, NBS fertilisers have market-determined MRPs. Companies selling these fertilisers set their prices.
  • Fixed per-tonne subsidy: Under NBS, the government provides a subsidy based on the nutrient content of the fertiliser. It fixes a subsidy per kilogram for nitrogen (N), phosphorous (P), potassium (K), and sulphur (S) components in the fertilisers.
  • However, in the last two years, non-urea fertilisers under the NBS scheme have been informally regulated.
  • Starting April 2023, the Department of Fertilisers has set maximum profit margins over costs to decide if the maximum retail prices (MRPs) are fair. Companies charging higher prices won''t receive subsidies from the government under the NBS scheme if their prices exceed these set margins.

  Government Initiatives and Schemes in Fertilizer Sector

  • Neem Coating of Urea
    • Mandatory Coating: All domestic producers are required by the Department of Fertilisers (DoF) to produce 100% Neem Coated Urea (NCU).
    • Benefits:

§  Enhances soil health.

§  Reduces the need for plant protection chemicals.

§  Decreases pest and disease occurrences.

§  Increases crop yields, especially for paddy, sugarcane, maize, soybean, and Tur/Red Gram.

§  Minimises misuse for non-agricultural purposes.

§  Slow nitrogen release improves Nitrogen Use Efficiency (NUE), reducing the amount of NCU needed compared to standard urea.

  • New Urea Policy (NUP) 2015
    • Objectives:

§  Maximise domestic urea production.

§  Enhance energy efficiency in urea production units.

§  Reduce the government’s subsidy burden.

  • New Investment Policy (NIP) 2012
    • Announced in January 2013 and amended in 2014, the policy encourages fresh investments in the urea sector to make India self-reliant in urea production.
  • Policy on Promotion of City Compost
    • Policy Approval: The DoF’s 2016 policy promotes city compost use by providing a Market Development Assistance of ₹1,500 to increase production and consumption.
    • Sales and DBT: Compost manufacturers can sell directly to farmers in bulk, and fertiliser companies marketing city compost are covered under Direct Benefit Transfer (DBT) for Fertilisers

Study finds long-term dynamics of transplanted stem cells

·        A recent study has provided crucial insights into the behavior of transplanted hematopoietic stem cells over extended periods. This research focuses on some of the longest-living survivors of hematopoietic stem cell transplants (HSCT), which are life-saving procedures primarily used for patients with blood cancers.

Key Findings

·        Mutation Rates: The study found that the rate of mutations and clonal expansion remained low and consistent, with mutation rates averaging 2% per year in donors and 2.6% in recipients. This suggests minimal widespread clonal expansion of stem cells even decades after transplantation.

·        Clonal Hematopoiesis (CH): All donors exhibited some degree of clonal hematopoiesis variants, present even in early blood samples. However, the overall mutation rates did not indicate significant adverse effects on the transplanted cells.

·        Hematopoietic Stem Cell Transplants: These procedures are critical for treating various blood cancers and involve replacing a patient''s damaged or dysfunctional blood-forming cells with healthy stem cells from a donor.

What is HSCT?

·        Hematopoietic stem cell transplantation (HSCT) is a critical medical procedure used to restore blood cell production in patients with damaged or defective bone marrow or immune systems. This technique has seen significant growth over the past 50 years, becoming a standard treatment for various malignant and nonmalignant diseases.

Types of HSCT

·        Autologous Transplant: Cells are sourced from the patient’s own body. It is commonly used for conditions such as multiple myeloma and non-Hodgkin lymphoma.

·        Allogeneic Transplant: Cells are sourced from a donor.

·        Syngeneic Transplant: Stem cells are obtained from an identical twin.

·        Cell Sources: The primary sources of stem cells for HSCT include:

·        Bone Marrow: Traditionally the most common source.

·        Peripheral Blood: Stem cells are collected from circulating blood after stimulation.

·        Umbilical Cord Blood: Collected at birth; has unique advantages, particularly in matching.

·        Fetal Liver: Rarely used due to ethical and practical concerns.

·        Each source has its advantages and disadvantages, impacting the clinical applications and outcomes of the transplant.         

IDiGi Framework

·        The US, Japan, and South Korea released the DiGi Framework to bolster digital infrastructure in India, focusing on 5G, data facilities, AI, and smart cities.

·        The DiGi Framework will support projects throughout India’s records and communications technology (ICT) sector, concentrated on critical areas like 5G, Open RAN, submarine cables, optical fiber networks, data centers, smart cities, e-trade, AI, and quantum technology.

·        This collaboration among the U.S., Japan, and South Korea and Indian private zone companions objectives to enhance connectivity, enhance digital infrastructure, and enhance technological innovation across those sectors in India.

·        It similarly reflects the shared dedication to develop digital transformation and sustainable improvement in India and the Indo-Pacific region.

Digital Public Infrastructure (DPI)

·        It encompasses the foundational digital structures and services that permit efficient, inclusive, and obvious public carrier shipping. It refers to the shared digital systems and services that help public provider delivery at scale. 

·        It consists of digital identity structures, payment structures, records alternate frameworks, and different foundational technology, and characterized by its interoperability, open standards, societal scale, and strong governance frameworks.

·        India has turned out to be the first country to establish all three foundational Digital Public Infrastructures (DPIs), together referred to as the India Stack. This complete digital framework consists of:

·        Digital Identification (Aadhaar): Providing a completely specific digital identification for residents.

·        Real-time Rapid Payment System (UPI): Enabling rapid and seamless digital bills.

·        Data Sharing Architecture (Data Empowerment and Protection Architecture, DEPA): Facilitating strong and consent-based records sharing.

Significance

·        Financial Inclusion: UPI revolutionized digital bills, allowing millions to access financial services seamlessly and cost effectively. This has extended economic inclusion, enabling even those without formal banking access to participate inside the digital financial system.

·        Efficient Governance and Service Delivery: Aadhaar has simplified public service delivery by verifying identities digitally, decreasing duplication, and preventing fraud. This efficiency supports packages which include direct benefit transfers, which reach beneficiaries faster and reduce leakage.

·        Economic Growth and Innovation: DPI has spurred innovation and entrepreneurship with the aid of growing open digital frameworks accessible to fintech, health tech, and different digital provider carriers. It enables the private sector to construct fee-delivered services, fostering process creation and economic boom.

·        Data Empowerment and Privacy: Through DEPA (Data Empowerment and Protection Architecture), people can share information securely and with consent, promoting data sovereignty. This empowers residents to govern and take advantage of their records while ensuring privateness protection.

Key Challenges Associated With DPI

·        Privacy and Security Concerns: Ensuring the safety of private records and preventing cyber threats is paramount. Privacy violations, identification theft, and data-pushed control are significant risks.

·        Digital Divide: Bridging the gap among people with access to digital technology and people without is a major challenge. It consists of addressing troubles of affordability, digital literacy, and infrastructure availability in remote areas.

·        Institutional Change: Implementing DPI calls for large modifications within public institutions, which includes updating guidelines, education team of workers, and adapting to new technologies.

·        Funding and Investment: Securing adequate funding and investment for DPI projects is critical. This includes now not only preliminary setup costs but also ongoing upkeep and enhancements.

Realising the Full Potential of DPI: Strategic Steps

·        Integrating Impact Assessments: To ensure that DPI initiatives are powerful and inclusive, it is crucial to combine effect checks into their layout. It includes evaluating the social, financial, and environmental influences of DPI projects from the outset.

·        By doing so, policymakers can discover capacity issues early and make important modifications to decorate the blessings and mitigate any poor effects.

·        Ensuring Data Privacy and Security: As DPI structures handle significant amounts of touchy data, ensuring strong statistics privacy and security measures is paramount. It consists of imposing strong encryption requirements, regular safety audits, and transparent records governance guidelines.

·        Protecting user data now not most effective builds accept as true with but additionally safeguards in opposition to capability misuse and cyber threats.

·        Promoting Inclusivity and Accessibility: For DPI to be clearly transformative, it has to be accessible to all segments of society, consisting of marginalised and underserved communities.

·        Fostering Public-Private Partnerships: Collaboration between the private and public sectors can accelerate the development and adoption of DPI.

India and Spain Sign Multiple agreements

  • India and Spain have recently strengthened their bilateral ties through the signing of multiple agreements, particularly focusing on rail transport and customs matters. This development marks a significant step in enhancing cooperation across various sectors, reflecting the growing partnership between the two nations.

Overview of Agreements

  • 1. Rail Transport Cooperation: A key highlight of the recent agreements is the Memorandum of Understanding (MoU) signed for cooperation in rail transport.

This MoU aims to facilitate collaboration in several areas:

  • Planning and Design: Collaborations extend to strategy, concept, idea and design of railway systems, stations as well as facilities for passengers and cargo transport.
  • Development and Commissioning: It extends the business scope of the two partnerships in the joint construction and operation of new high-speed railway lines for long-distance passenger transport and new urban and regional railway transportation systems.
  • Technical Assistance:  Spain’s railway technologies in signaling, electrification, and safety concerns will prove beneficial to India as India seeks to upgrade its rail infrastructure.
  • The satellite signaling and Telegram agreement was signed between India’s National Capital Region Transport Corporation (NCRTC) and Spain’s Administrador de Infraestructuras Ferroviarias (ADIF). This partnership is hoped to improve on technical details on how projects will be carried out and training of officials who are involved in these projects.
  • 2. Customs Cooperation: Besides, rail transport India and Spain have agreed to cooperation and mutual assistance in customs issues.

This agreement aims to:

  • Improve trade security through access to information concerning customs offenses.
  • To enhance efficiency of customs measures, in order to facilitate trade between the two countries.
  • The latter is crucial for the development of mutual investments, while it is necessary to adopt a normative base for the establishment of a fast-track mechanism to support such investments.

Significance of the Agreements

  • Economic Impact: The agreements signify a substantial economic opportunity for both nations. For India, access to Spanish expertise in high-speed rail technologies aligns with its ambitious goal of modernizing its rail infrastructure. The collaboration supports India’s “Make in India” initiative by encouraging Spanish firms to localize manufacturing processes within India.
  • Spain stands to gain from this partnership by tapping into India’s burgeoning market. With two-way trade nearing $10 billion, Spanish companies can explore new business avenues while contributing to India’s infrastructural development.
  • Cultural Exchange Initiatives: The bilateral talks also led to plans for celebrating 2026 as the ‘India-Spain Year of Culture, Tourism, and AI’. This initiative aims to promote cultural exchanges through music, dance, literature, and festivals. Such cultural diplomacy is expected to strengthen people-to-people ties between the two nations.

Conclusion

  • The recent agreements between India and Spain represent a pivotal moment in their bilateral relations. By focusing on rail transport and customs cooperation, both countries are not only enhancing their economic ties but also laying the groundwork for deeper cultural connections. As they navigate global challenges together, this partnership could serve as a model for collaborativ international relations moving forward.

 International Monetary and Financial Committee (IMFC)?

  • Union Minister for Finance & Corporate Affairs Nirmala Sitharaman attended the 50th meeting of the International Monetary and Financial Committee (IMFC) that took place in Washington, D.C.
  • Sitharaman said that in 2024 the global economy has shown remarkable resilience. While output is nearing its potential in some major economies, headline inflation has generally moderated and moved closer to the central banks’ targets. 
  • She said that several downside risks, including growing geo-political tensions and medium-term global growth prospects, are a concern due to their continued weakness. 
  • Several IMFC members discussed the global macroeconomic and financial impact of current wars and conflicts, including with regard to Russia, Ukraine, Israel, Gaza, Lebanon, and in other places.
  • They acknowledged, however, that the IMFC is not a forum to resolve geopolitical and security issues which are discussed in other fora.

International Monetary and Financial Committee (IMFC)

  • The International Monetary and Financial Committee (IMFC) is responsible for advising and reporting to the International Monetary Fund (IMF) Board of Governors as it manages and shapes the international monetary and financial system. 

It also:

  • i) Monitors developments in global liquidity and the transfer of resources to developing countries.
  • ii) Considers proposals by the Executive Board to amend the Articles of Agreement.
  • iii) Deals with unfolding events that may disrupt the global monetary and financial system.
  • iv) Advises on any other matters that may be referred to it by the Board of Governors.
  • • Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the IMF.
  • The IMFC meets twice a year during the IMF Spring and Annual Meetings. The Committee discusses matters affecting the global economy and advises the IMF on the direction of its work. 
  • A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings.
  • At the end of the meetings, the Committee issues a statement summarizing its views. These statements provide guidance for the IMF’s work program during the half year leading up to the next Spring or Annual Meetings.
  • There is no formal voting at the IMFC, which generally operates by consensus.
  • The size and composition of the IMFC mirrors that of the Executive Board. The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank and who are usually drawn from the governors of the IMF’s 191 member countries.
  • The group is currently chaired by Mohammed Aljadaan, Saudi Arabia’s Minister of Finance. He was selected to head the Committee for a term of three years effective January 4, 2024.

LAC and LOC?.

The border dispute between India and China has seen recent developments, particularly regarding military disengagement along the Line of Actual Control (LAC).

 LAC??

  • The Line of Actual Control (LAC) is the de facto border between India and China, extending approximately 4,057 km. It separates the Indian-controlled territories in Jammu and Kashmir from the Chinese-occupied region of Aksai Chin.
  • The LAC runs through several regions, including Ladakh, Kashmir, Uttarakhand, Himachal Pradesh, Sikkim, and Arunachal Pradesh.
  • Historically, the LAC emerged from the 1962 India-China war, when both nations'' troops were positioned at this line.
  • Over time, it has become a recognized boundary through agreements made in 1993 and 1996, emphasizing that neither side should advance beyond it.
  • However, due to the lack of a clear demarcation, encounters between Indian and Chinese troops frequently occur.

LAC LOC

LOC?

  • In contrast, the Line of Control (LOC) is a military control line between India and Pakistan, spanning about 740 km.
  • It divides Jammu and Kashmir into parts controlled by India and Pakistan, and it was established after the first Indo-Pakistani war in 1947.
  • Unlike the LAC, the LOC is well-defined, with Indian and Pakistani forces stationed face-to-face along the line, leading to frequent skirmishes.

Key Differences

  • Buffer Zone: The LAC typically has a buffer zone where both sides patrol without direct contact, while the LOC is characterized by constant military presence and confrontation.
  • Nature of Control: The LAC results from historical conflict and lacks clear demarcation, while the LOC is a clearly defined boundary established after wars and agreements.

LAC and LOC?.

 

Marching Towards Atmanirbharta: India''s Defence Revolution.

  • The Atma Nirbhar Bharat initiative has converted India’s defence sector, with a surge in domestic defence production and exports.
  • According to the Defence Ministry, the cost of defence manufacturing in India has gone up to ₹1,26,887 crore in FY 2023-24, reflecting a growth of 16.7% over the defence manufacturing of FY 2022-23.
  • Of the total value of manufacturing in 2023-24, about 79.2% has been contributed by the Public Sector and 20.8% by the private sector.
  • India’s defense budget of US$ 74.7 billion ranked 4th highest globally in 2024. 
  • Defense exports was ₹21,083 crore in FY 2023-24, reflecting a growth of 32.5% during the last fiscal when the figure was ₹15,920 crore.
  • India has set a goal of US$ 6.02 billion worth of annual defence exports by 2028-29.
  • India has developed essential defense systems including the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank Arjun, Light Combat Aircraft Tejas, submarines etc.

Advantages of growth in defence production

  • Self-defence: The presence of adversarial friends like China and Pakistan makes it essential for India to enhance its self-defence and preparedness.
  • Strategic advantage: Self-reliance will make India’s geopolitical stance strategically more potent as a net defence sector.
  • Technological development: Advancement in the defense generation sector will automatically enhance different industries hence catapulting the economy similarly in advance.
  • Economic drain: India spends around 3% of GDP on defence and 60% of that is spent on imports. This results in an incredible economic drain.
  • Employment: Defence manufacturing will need the support of several different industries which generate employment opportunities.

Concerns

  • Narrow Private Participation: Private sector participation within the defence sector is limited by the lack of a conducive economic framework, meaning our defense manufacturing is unable to gain from contemporary layout, innovation, and product improvement.
  • Lack of Critical Technology: Lack of design capability, inadequate R&D investment, lack of ability to manufacture foremost subsystems and components abate indigenous manufacturing.
  • Lack of Coordination Between Stakeholders: India’s defence production capability is hindered by overlapping jurisdictions among the Ministry of Defence and the Ministry of Industrial Promotion.

Government projects to Increase Defence Export

  • IDR Act: Defence Products listing requiring Industrial License has been rationalized and manufacture of most of components or components does not require Industrial License.
  • The initial validity of the Industrial Licence granted has been improved from 03 years to 15 years with a provision to in addition expand it by 03 years on a case-to-case foundation
  • Government schemes along with iDEX (Innovations for Defence Excellence) and DTIS (Defence Testing Infrastructure Scheme) to permit innovation in the Defence & Aerospace environment.
  • FDI inside the Defence Sector has been better as 74% through the Automatic Route and 100% by Government Route, to promote export and liberalize overseas investments.
  • The government has established 2 dedicated Defence Industrial Corridors within the States of Tamil Nadu and Uttar Pradesh to behave as clusters of defense manufacturing that leverage current infrastructure, and human capital.  
  • Defence Production and Export Promotion Policy 2020 (DPEPP): The Ministry of Defence (MoD) has formulated a draft DPEPP 2020 as a guiding file of MoD to offer a centered, structured, and large thrust to defence production competencies of the country for self-reliance and exports.
  • In 2021, Defence Acquisition Council (DAC) boosted the ‘Make in India’ initiative through Acceptance of Necessity (AoN) — to capital acquisition proposals worth US$ 1.07 billion (Rs. 7,965 crore) — for modernisation and operational needs of militia.
  • As part of the Make in India initiative, major defence platforms such as the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank (MBT) Arjun, Light Combat Aircraft (LCA) Tejas, submarines, frigates, corvettes, and the recently commissioned INS Vikrant have been developed, reflecting the growing capabilities of India''s defence sector.
  • Consequently, the annual defence production has not only crossed ₹1.27 lakh crore but is also on track to reach a target of ₹1.75 lakh crore in the current fiscal year. With aspirations to achieve ₹3 lakh crore in defence production by 2029, India is solidifying its position as a global manufacturing hub for defence.

Key Government Initiatives

  • In recent years, the Indian government has implemented a series of transformative initiatives aimed at bolstering the country''s defence production capabilities and achieving self-reliance. These measures are designed to attract investment, enhance domestic manufacturing, and streamline procurement processes. From liberalizing foreign direct investment (FDI) limits to prioritizing indigenous production, these initiatives reflect a robust commitment to strengthening India''s defence industrial base. The following points outline the key government initiatives that have been pivotal in driving growth and innovation in the defence sector.
  • Liberalized FDI Policy: The Foreign Direct Investment (FDI) limit in the defence sector was raised in 2020 to 74% through the Automatic Route for companies seeking new defence industrial licenses and up to 100% through the Government Route for those likely to result in access to modern technology. As of February 9, 2024, ₹5,077 crore worth of FDI has been reported by companies operating in the defence sector.
  • Budget Allocation: The allocation for the Ministry of Defence for the financial year 2024-25 is ₹6,21,940.85 crore, as part of the “Demand for Grant” presented in Parliament during the ongoing Budget Session.
  • Priority for Domestic Procurement: Emphasis is placed on procuring capital items from domestic sources under the Defence Acquisition Procedure (DAP)-2020.
  • Positive Indigenization Lists: Notification of five ‘Positive Indigenization Lists’ totalling 509 items of services and five lists of 5,012 items from Defence Public Sector Undertakings (DPSUs), with an embargo on imports beyond specified timelines.
  • Simplified Licensing Process: Streamlining the industrial licensing process with a longer validity period.
  • iDEX Scheme Launch: The Innovations for Defence Excellence (iDEX) scheme was launched to involve startups and Micro, Small, and Medium Enterprises (MSMEs) in defence innovation.
  • Public Procurement Preference: Implementation of the Public Procurement (Preference to Make in India) Order 2017 to support domestic manufacturers.
  • Indigenization Portal: Launch of the Self-Reliant Initiatives through Joint Action (SRIJAN) portal to facilitate indigenization by Indian industry, including MSMEs.
  • Defence Industrial Corridors: Establishment of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu, to promote defence manufacturing.
  • Opening Defence R&D: Defence Research & Development (R&D) has been opened up for industry and startups to foster innovation and collaboration.
  • Domestic Procurement Allocation: Out of the total allocation of ₹1,40,691.24 crore under the Capital Acquisition (Modernization) Segment, ₹1,05,518.43 crore (75%) has been earmarked for domestic procurement in the Budget Estimates for 2024-25.

Urban GDP Declines

·        Recent economic assessments reveal a contrasting landscape in India’s GDP growth, characterized by a notable uptick in rural demand while urban areas face emerging challenges. The Finance Ministry’s latest review indicates a complex interplay between these two sectors, crucial for understanding the broader economic trajectory.

Rural Demand Resilience

·        Positive Indicators from Rural Areas: A strong outcome in rural demand is mainly owed to good monsoon results, which has boosted agricultural production. 

Factors Supporting Rural Growth

·        Agricultural Productivity: Better rainfall has helped increase crop production hence increasing farmers’ disposable income.

·        Increased Spending: Having noticed the better financial situation of rural households, the expenditure on fast moving consumer goods and other necessities has also increased.

·        Government Initiatives: Other factors that have on an equal measure caused this increased AML activity include; The government’s attempt at offering rural development schemes.

Urban Areas: New Points of Concern 

·        Softening Urban Demand: In stark contrast, urban areas are witnessing a decline in consumer sentiment and demand. There are several concerning trends:

·        Decline in FMCG Sales: In terms of volumes, sales to urban customers especially in the FMCG sector have declined owing to decreased consumer purchasing capacity.

·        Automobile Sales Contraction: A lower automobile production of 2.3% in the first half of FY25 evidences slumping urban demand mainly because of reduced sell-off in the last quarter.

·        Housing Market Slowdown: Slower sales and new launch housing arise further proof of the difficulties that affect the urban segment.

Contributing Factors to Urban Decline

·        Consumer Sentiment: It is apparent that the consumer confidence has eased, due to a number of effects of economic factors.

·        Weather Impact: Excessive rain has reduced the number of people walking around the commercial areas – a factor that impacts on sales.

·        Seasonal Purchase Patterns: B2C consumers often avoid large purchases during some periods of the year, copious to some calendar seasons.

Economic Outlook and Risks

·        Mixed Signals for Future Growth: While the Finance Ministry expresses cautious optimism regarding rural demand, it remains wary of overall consumption trends in urban areas. The ongoing festive season may provide a temporary boost to urban consumer demand; however, early indicators suggest that recovery may not be straightforward.

Risks to Economic Stability: Several external factors pose risks to India’s economic stability:

·        Geopolitical Conflicts: Escalating tensions globally can disrupt trade and investment flows.

·        Geo-economic Fragmentation: Shifts in international economic alliances may affect India’s market dynamics.

·        Financial Market Valuations: Elevated valuations in advanced economies could lead to negative wealth effects domestically, impacting household spending on durable goods.

Conclusion

·        The current economic landscape presents a dichotomy between rural resilience and urban challenges. While rural areas benefit from favorable agricultural conditions and increased spending, urban centers face significant headwinds that could dampen overall GDP growth.

·         Policymakers must navigate these complexities carefully to sustain economic momentum and address the emerging concerns within urban markets. The interplay between these sectors will be critical as India strives to achieve its growth targets amidst evolving global dynamics.

What is NAFED?

  • Deepak Agarwal, a 2000-batch Indian Administrative Service (IAS) officer of Uttar Pradesh cadre, has been appointed as Managing Director of National Agricultural Cooperative Marketing Federation of India (NAFED).
  • National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is an apex organisation of marketing cooperatives for agricultural produce in India. 
  • It was established in 1958 under the Multi-State Cooperative Societies Act. 
  • NAFED was founded with the goal to promote the trade of agricultural produce and forest resources across the nation.
  • There are over 900 members in NAFED, represented by chief executives of apex level marketing/consumer cooperative/other national level federations, state level marketing/ tribal/commodity federations and primary cooperative marketing/processing societies.
  • Agricultural farmers are the main members of NAFED.
  • The activities of NAFED add to the betterment of agriculture and post harvest of the produce. 
  • NAFED procures stocks directly from the farmers in regulated mandis in open auction through the cooperative infrastructure thereby providing them a ready market, fair price and preventing their exploitation at the hands of private traders.
  • Also, whenever there is a glut in market due to bumper production when prices tend to crash, NAFED undertakes procurement at the Minimum Support Price (MSP) under the Price Support Scheme in case of 16 notified commodities (pulses, oilseeds, copra, dehusked coconut, cotton) thereby providing remunerative prices to farmers for their produce.
  • NAFED also plays a crucial role in price stabilisation of essential commodities like onion and pulses through creation of national buffer on the direction of the government of India.

The objectives of the NAFED are: 

  • i) To organise, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce.
  • ii) Distribution of agricultural machinery, implements and other inputs.
  • iii) Undertake inter-state, import and export trade, wholesale or retail as the case may be.
  • iv) To act and assist for technical advice in agricultural production for the promotion and the working of its members, partners, associates and cooperative marketing, processing and supply societies in India.

 WMO Releases GREENHOUSE GAS BULLETIN

·        The Greenhouse Gas Bulletin reports on greenhouse gas concentrations, rather than on emission levels. The Greenhouse Gas Bulletin complements the UN Environment Programme’s Emissions Gap report. Both were published ahead of COP29 in Baku, Azerbaijan.

Key takeaways

·        The Greenhouse Gas Bulletin has been published annually since 2004.

·        The publication presents the latest analysis of observations from the WMO Global Atmosphere Watch (GAW) Programme on concentrations of long-lived greenhouse gases in the atmosphere.

·        The Bulletin reports globally averaged surface mole fractions of carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). It compares these values to those of the previous year and pre-industrial levels.

·        Additionally, it provides insights into changes in radiative forcing — the warming effect on the atmosphere by long-lived greenhouse gases and details the contribution of individual gases to this effect.

·        The Greenhouse Gas Bulletin is released yearly to inform the United Nations Climate Change negotiations, the annual Conference of the Parties (COP).

Key findings of latest bulletin

·        The globally-averaged surface concentration of CO2 reached 420.0 parts per million (ppm), methane 1934 parts per billion and nitrous oxide 336.9 parts per billion (ppb) in 2023. These values are 151%, 265% and 125% of pre-industrial (before 1750) levels.

·        In 2023, the increase in CO₂ levels was driven by three main factors: large amounts of CO₂ released from wildfires, a possible decline in how much CO₂ forests can absorb, and persistently high CO₂ emissions from fossil fuels due to human and industrial activities.

·        During El Niño years, greenhouse gas levels tend to rise because drier vegetation and forest fires reduce the efficiency of land carbon sinks.

·        Given the extremely long life of CO2 in the atmosphere, the temperature level already observed will persist for several decades even if emissions are rapidly reduced to net zero.

·        The last time the Earth experienced a comparable concentration of CO2 was 3-5 million years ago, when the temperature was 2-3°C warmer and sea level was 10-20 meters higher than now.







POSTED ON 29-10-2024 BY ADMIN
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