GS Analyst: Daily Current Affairs

Recent developments in the Middle East have highlighted escalating tensions between Israel and Iran, marked by an unprecedented direct attack by Iran on Israel and subsequent responses.

Netanyahu's Dilemma:

• Undermined strategy: Despite Netanyahu's longstanding opposition to Iran and projection of toughness, Iran's recent direct attack on Israel has undermined Israel's deterrence strategy.
• Weak response: The Biden administration's reluctance to support Israeli retaliation against Iran further limited Netanyahu's options, leaving him with a weak response that did little to bolster Israeli deterrence.
• Strategic reality: Netanyahu's preference for force against Iran was tempered by the strategic reality, where Israeli military actions needed U.S. support and participation.

The Ayatollah's Calculus:

• Iran's strategic patience in its shadow war with Israel has shifted with recent developments, including improved ties with Russia and China and perceived weaknesses in Israel's regional position.
• The bombing of Iran's embassy annex triggered Iran's decision to impose a cost on Israel's strikes on its officials, marking a change in Tehran's strategic thinking.
• Iran's assessment of a reduced U.S. appetite for prolonged conflict in the Middle East, coupled with its strategic partnerships and perceived vulnerabilities in Israel's position, emboldened Tehran to launch a direct attack on Israel.

Mains Question:

Discuss the recent escalation of tensions between Israel and Iran, analyzing the strategic dilemmas faced by Israeli Prime Minister Benjamin Netanyahu and the evolving calculus of the Iranian leadership.

The Reserve Bank of India (RBI) has highlighted the significant impact of climate change on the economy in its latest Monetary Policy Report, emphasizing the need for addressing extreme weather events and climate shocks.

Economic Impact of Climate Change:

• Needed consideration: The RBI's report underscores the importance of considering climate risks in monetary policy, indicating that extreme weather events and climate shocks could affect food inflation and the economy's financial stability.
• Macroeconomic impact: It employs a New-Keynesian model incorporating a physical climate risk damage function to estimate the macroeconomic impact of climate change, projecting a potential 9% lower long-term output by 2050 without mitigation policies.
• Loss: The report warns of inflation hysteresis leading to a de-anchoring of inflation expectations, necessitating higher interest rates to curb inflation and resulting in greater output loss.

RBI's Efforts Towards Green Economy:

• RBI’s approach: The RBI has been gradually addressing the transition to a green economy since its July 2022 discussion paper on climate risk and sustainable finance.
• Green methods: While acknowledging India's need for over USD 17 trillion to achieve net zero ambitions by 2070, the RBI has introduced initiatives like Sovereign Green Bonds and expanded participation in green government securities by Foreign Institutional Investors.
• Required measures: The RBI should focus on assessing the quantitative and qualitative impact of climate change on economic and financial stability, promoting the development of a layered green taxonomy reflective of India's diverse developmental trajectories to mitigate transitional risks.

Mains Question:

Discuss the significance of climate change considerations in the Reserve Bank of India's monetary policy framework and examine the measures needed to address climate-related risks for ensuring financial stability and sustainable economic development in India.

The Congress party's Nyay Patra manifesto has sparked a debate on inequality and wealth redistribution in India, coinciding with rising concerns over economic disparities.

Wealth Redistribution and Taxation:

• Inequality in India: The World Inequality database found that in 2022-23, 22.6% of the national income went to the top 1%, the highest ever since 1922. Wealth inequality is even more stark with the top 1% population having 40.1% share in wealth.
• Low tax-GDP ratio and regressive tax structure: India not only has a low tax-GDP ratio compared to other middle-income countries but also a regressive taxation structure, where indirect taxes contribute to almost two-thirds of all tax revenue collection. Furthermore, even direct taxes are not very progressive. 
• Spending on welfare and the social sector is very low compared to other countries. 

Employment-Centred Growth and Social Spending:

• Job creation and equitable growth: The focus extends to questioning the nature of economic growth, emphasizing the need for job creation and equitable growth that benefits all segments of society.
• Required measures: Governments must prioritize job creation through direct employment schemes, bolstering public services in health, education, and social security to reduce unemployment and enhance human development outcomes.
• Employment-centered growth: To address inequality in earnest, the government must focus on employment-centered growth pattern. 

Mains Question:

Examine the implications of rising economic inequality in India and discuss strategies for promoting social equity and inclusive development, with a focus on wealth redistribution, progressive taxation, and employment-centered growth policies.

The recent discussions between the Centre and the UK government regarding the development of an electric propulsion system in India to power domestic warships mark a significant milestone in India's maritime capabilities.

1: Dimension- Significance of the Agreement

• Currently, Indian warships rely on diesel engines, gas turbines, or steam turbines for propulsion. The shift towards electric propulsion, especially for larger warships exceeding 6,000 tonnes displacement, signifies a strategic leap in naval operations.
• Electric propulsion harnesses electrical power to drive propeller blades, offering enhanced efficiency and maneuverability.
• It promises to revolutionize ship navigation, reduce carbon footprint, and augment electric power availability, thereby enhancing overall operational effectiveness.

2: Dimension- Impact on Maritime Security and Defense

• Strengthened security posture: The adoption of electric propulsion technology is poised to strengthen India's maritime security posture by equipping its warships with cutting-edge propulsion systems.
• Enhanced maneuverability and operational efficiency offered by electric propulsion will bolster the country's naval capabilities, enabling swift response to evolving threats and challenges in the maritime domain.
• Self-reliance in defense manufacturing: The collaboration with the UK underscores India's commitment to leveraging international partnerships for technological advancement and indigenous defense production, aligning with the broader goal of self-reliance in defense manufacturing.
• Stability: By harnessing innovative technologies and fostering strategic partnerships, India is poised to emerge as a formidable maritime power, capable of safeguarding its maritime interests and contributing to regional stability in the Indo-Pacific region.

The Indian Space Research Organisation (ISRO) recently released a satellite-data-based analysis shedding light on the expansion of glacial lakes in the catchments of Indian Himalayan river basins. This analysis comes amidst growing concerns about the risks of glacial lake outburst floods (GLOFs).

Insights from ISRO's Analysis:

• ISRO's analysis, spanning four decades of satellite data from 1984 to 2023, revealed significant expansion in the size of glacial lakes within the Indian Himalayan region.
• Out of the 2,431 lakes larger than 10 hectares identified during 2016-17, 676 glacial lakes had notably expanded since 1984, with 601 lakes more than doubling in size.
• Approximately 130 of these expanded lakes are situated in India, particularly in the Indus, Ganga, and Brahmaputra river basins, a consequence of glaciers retreating due to global warming.

1: Dimension- Risks and Challenges:

• Glacial lakes serve as vital freshwater sources for rivers but also pose risks, particularly GLOFs, which can result in sudden and severe flooding downstream.
• Monitoring these lakes in the rugged Himalayan terrain is challenging, underscoring the importance of satellite remote-sensing technology for comprehensive monitoring and risk assessment.

2: Dimension- Mitigation Strategies:

• The NDMA released guidelines on how to deal with disasters caused by GLOFs.
  • Identification and mapping of glacial lakes.
  • Using Synthetic-Aperture Radar imagery to automatically detect changes in water bodies, including new lake formations, during the monsoon months.
  • Methods could be developed to permit remote monitoring of lakes from space.
  • o manage lakes structurally, decreasing the volume of water with methods like controlled breaching, pumping or siphoning out water, and making a tunnel through the moraine barrier or under an ice dam.
• Studies have explored strategies like using long High-Density Polyethylene (HDPE) pipes to syphon off lake water, as demonstrated in initiatives like reducing water levels in Sikkim's South Lhonak Lake.

On the occasion of the 176th birth anniversary celebrations of Raja Ravi Varma, the first true copy of his painting Indulekha has been unveiled at the Kilimanoor Palace.

About Raja Ravi Varma

• Kilimanoor-born Raja Ravi Varma (1848-1906) is known to be one of the leading figures in the history of modern art in India.
• His depictions of the Hindu gods and goddesses went on to influence their portrayal in art and cinema for years.
• He invented the first oleograph press, which he set up in Ghatkopar in Mumbai. This gave rise to a massive production of prints of oil paintings.
• Raja Ravi Varma was closely related to the royal family of Travancore of present-day Kerala state in India.

The city of Madurai comes alive each year during the vibrant Chithirai Festival, held in the Tamil month of Chithirai (April-May).

Historical and Cultural Significance:

• The festival is celebrated during the month of Chitirai which falls in the month of April. The month long festival is one of the longest that the festivities are divided into two.
  • The first 15 days of the festival are in celebration of Goddess Meenakshi.  
  • The remaining 15 days are celebrated for Alagar (A form of lord Mahavishnu).
• The festival commemorates the divine marriage of Lord Sundareswarar (Lord Shiva) and Goddess Meenakshi, the presiding deities of the iconic Meenakshi Amman Temple in Madurai.
• Legend has it that Lord Vishnu himself attended the celestial wedding, bestowing his blessings upon the divine union, making it a momentous occasion in Hindu mythology.

A Ministerial Round Table Conference recently took place during the 26th edition of the World Energy Congress, co-hosted by World Energy Council, in Rotterdam, Netherlands.

About the World Energy Council (WEC):

• Founded in: 1923
• The World Energy Council, a not-for-profit organization, is a preeminent member-based network dedicated to advancing the global energy transition.
• Objective: to promote sustainable energy supply and utilization.

The National Human Rights Commission (NHRC) of India faces a critical juncture as its accreditation status at the Global Alliance of National Human Rights Institutions (GANHRI) is under review in Geneva. The decision, expected to be made at a meeting of the Sub-Committee on Accreditation (SCA), will determine whether NHRC retains it’s "A status" or faces a downgrade to "B status".

About NHRC

• Set up in: 1993
• Headquarters: Delhi
• Type: Autonomous bodies (created by an Act of Parliament)
• The National Human Rights Commission (NHRC) of India operates under the Protection of Human Rights Act (PHRA), 1993, which was later amended by the Protection of Human Rights (Amendment) Act, 2006.
• The NHRC follows the Paris Principles, which were established at an international workshop in Paris in October 1991. These principles were endorsed by the United Nations General Assembly in December 1993.
• The NHRC reflects India's commitment to promoting and safeguarding human rights.
• According to Section 2(1)(d) of the PHRA, human rights include the rights related to life, freedom, equality, and dignity of individuals. These rights are protected by the Constitution and international agreements, and they can be enforced by Indian courts.
• Composition: Chairperson, five full-time Members, and seven deemed Members.
• Concerns:
  • NHRC's accreditation status was put on hold in 2023 due to concerns regarding its composition procedure, including the presence of police personnel in human rights investigations, and the lack of gender and minority representation.

In a historic development, members of the Bru community exercised their right to vote in the Tripura Lok Sabha elections for the first time in 2024.

Background on the Bru Community:

• The Bru, also known as the Reang community, are indigenous to the Northeast region of India, predominantly residing in Tripura, Mizoram, and Assam.
• Within Tripura, the Bru community holds the status of a Particularly Vulnerable Tribal Group (PVTG), highlighting their socio-economic vulnerability and need for special protection and support.
• Ethnically, the Bru people belong to the Indo-Mongoloid racial stock, with linguistic affiliations to the Austro-Asiatic groups within the Tibeto-Burman language family.

With the help of the efforts of Gem & Jewellery Export Promotion Council (GJEPC), the gem and jewellery sector has been granted Authorised Economic Operator (AEO) status by the Finance Ministry.

Understanding AEO Status:

• The AEO status is a prestigious designation conferred under the World Customs Organisation (WCO) SAFE Framework of Standards.
• Objective: to secure and expedite global trade operations.
• Introduction: as a pilot project by the Customs department in 2011.
• Alignment with International Commitments: India's AEO Programme aligns with the commitments outlined under Article 7.7 of the World Trade Organization's Trade Facilitation Agreement (TFA).

The Reserve Bank of India (RBI) recently introduced new rules governing the conversion of Small Finance Banks (SFBs) into Universal Banks, signaling a significant shift in the banking landscape. The “Guidelines for 'on-tap' Licensing of SFBs in Private Sector” provide a transition path for SFBs to become universal banks.

Eligibility Conditions:

• Under the new guidelines, only listed SFBs meeting specific eligibility criteria are eligible to apply for a universal banking license. These criteria include-
  • minimum net worth of Rs 1,000 crore
  • scheduled status
  • satisfactory track record of at least five years
• Gross non-performing assets (NPAs): Additionally, aspiring SFBs must demonstrate profitability, maintaining gross non-performing assets (NPAs) of less than 3% and net NPAs of less than 1% in the preceding two financial years.
• Capital adequacy: They are also required to comply with prescribed capital adequacy norms and furnish a comprehensive rationale for their transition.