2nd May 2024 (13 Topics)
2nd May 2024
QUIZ - 2nd May 2024
5 Questions
7 Minutes
Context
Elon Musk, the CEO of Tesla, arrived in Beijing to promote Full Self-Driving (FSD), after cancelling his highly anticipated trip to India, highlighting the significance of China in the global supply chain for the most valuable electric vehicle manufacturer in the world. Musk was there to promote Full Self-Driving (FSD).
- Dimension: China's hegemony in battery manufacturing
- More than half of all electric vehicle (EV) sales worldwide are made in China, mostly due to the country's near-monopoly status in battery production, which is essential to the creation of EVs.
- Contemporary Amperex Technology Co Limited (CATL), a significant Chinese battery manufacturer produces Two-thirds of the world's batteries, which also supplies Tesla.
- Tesla's Dependence on China: China is now a key source of development for Tesla, outpacing the US and Europe in the production of electric vehicles.
- The largest production plant of the EV behemoth was constructed in Shanghai in 2018 as a result of a new Chinese regulation that allowed foreign automakers to establish wholly-owned subsidiaries in that city.
- China’s supply-chain advantage: Advanced material,skill levels, automation, logistics networks, policy-driven investment and commercial spending on research and development (R&D), dominance of certain natural resources and infrastructure to support the manufacturing ecosystem.
- Dimension: Challenges & Opportunities for India:
- India faces challenges in establishing a robust EV supply chain, historically relying on battery imports.
- The Indian government is incentivizing battery production through the PLI scheme for advanced chemistry cell (ACC) battery storage, aiming to capture a significant share of the global battery market by 2030.
- Increased scrutiny of Chinese EV exports in Europe and the US presents opportunities for India to emerge as a competitive player in the global EV market.
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Fact Box:
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Context
An increasingly important policy goal for the government is balanced fertilization, which tries to discourage farmers from using excessive amounts of urea, di-ammonium phosphate (DAP), and muriate of potash (MOP). Optimizing nutrient usage in agriculture is still an issue, despite initiatives like neem coating and nutrient-based subsidy (NBS) schemes.
- Dimension: Implications of uneven fertilization
Fertilizers are essential to modern agriculture since they greatly boost crop yields. But it has detrimental effects on the environment and human health:
- Soil health: Improper or excessive fertilizer application can upset the soil's natural nutrient balance, resulting in nutrient imbalances and poor soil quality.
- Water contamination: Because inorganic fertilizers are soluble, there is a greater chance that they will seep into groundwater. Nitrates, a type of nitrogen, are especially dangerous since they can contaminate supplies of drinking water.
- Greenhouse Gases: Nitrous oxide (N2O) emissions can be caused by inorganic fertilizers, especially those that contain urea or ammonium.
2: Dimension-Challenges in controlling excessive usage
- Constant growth: Urea consumption surged to a record 35.8 million tonnes (mt) in the fiscal year ending in March 2024, representing a 16.9% increase from 2013–14 levels. The use of urea is increasing despite interventions like neem coating, raising questions about sustainability.
- Issues with Nutrient-Based Subsidies: The 2010 implementation of the NBS system linked subsidies to nutrient content in an effort to promote balanced fertilization. Despite being successful at first, the removal of urea from NBS reduced its efficacy, which over time caused urea consumption to rise again.
- Issues with Fertilizer Pricing: In recent times, price limitations on fertilizers other than urea have been imposed, which has made nutrient imbalances in the agriculture sector worse. Price differences, especially for DAP and MOP, have encouraged overapplication, which has a negative impact on crop productivity and health.
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Fact Box Fertilizer consumption in India
State-sponsored Projects
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Context
Setting a new goal for the provision of climate finance to developing countries is poised to be the central topic for 29th Conference of Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) in Azerbaijan, across this year. The Platform provides a crucial platform for countries to address climate finance and establish the New Collective Quantified Goal (NCQG) to guide financial targets.
1: Dimension-Significance of Climate Finance
- Climate finance is essential for promoting climate action, supporting efforts at adaptation and reduction, and supporting developing countries, small island states, and the world's least developed nations in particular.
- Climate financing is a lifeline for disadvantaged countries facing the negative effects of climate change. The economic effects of climatic disasters disproportionately affect poorer countries, demanding targeted financial support to promote climate justice.
- The NCQG's creation is extremely important for guaranteeing fair access to funding for climate adaptation and mitigation.
- Countries can intensify their efforts to mitigate climate change and protect the most vulnerable populations by establishing explicit budgetary targets.
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Fact Box: 2015 Paris Climate Finance Agreement
New Climate Finance Collective Quantified Goal (NCQG)
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Context
A nine-judge Constitution Bench resumed hearings in the case to determine whether private property falls under the ambit of Article 39(b), a Directive Principle of State Policy. The case also involves the question of the constitutional position of Article 31C.
About
- Article 31C, a saving clause, was added by the 25th Constitutional Amendment and served two purposes.
- To start: It stated that legislation passed in order to implement Article 39(b) and (c) could not be invalidated because they conflict with Articles 14 and 19.
- Secondly, it prevented a law of that kind from being refused legal standing on the grounds that it failed to "give effect" to the two DPSPs.
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Fact Box: Article 39(b)
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Context
Emphasizing that the state and central consumer courts misapplied the legal principle known as the "eggshell skull," the Supreme Court reinstated the Rs 5 lakhs in compensation that the district consumer forum had given in a medical negligence case.
What is the rule of the "eggshell skull"?
- In civil action, the common law notion known as the "eggshell skull rule" is utilized.
- In essence, this means that the offender would be responsible for any harm that could worsen as a result of the injured party's unique circumstances, which the offender would not have been aware of.
- Simply put, even if the victim had an exceptionally delicate skull or a "eggshell" for a skull, the defendant would still be liable for whatever harm the victim sustained when he struck him on the head.
Context
The Election Commission of India (ECI)under Sections 58(2) and 58A(2) of the Representation of the People Act, 1951,ordered re-polling at a polling booth in variousLok Sabha Constituency in Karnataka and Manipur.
Constitutional Provision
- Article 324: Article 324 of the Indian Constitution vests the superintendence, direction, and control of elections in the hands of the Election Commission. The ECI is entrusted with the responsibility of ensuring free and fair elections at all levels of government.
- Representation of the People Act, 1951: The Representation of the People Act, 1951, provides the legal framework for conducting elections in India.
- Section 58 of the Act empowers the Election Commission to order re-polling in cases where irregularities, booth capturing, or other electoral malpractices are reported.
- Rule 64 of Conduct of Election Rules, 1961: It stipulates that if the presiding officer is satisfied that any irregularity or person's misconduct has affected the result of the poll at a particular polling station, they shall report the same to the returning officer. Based on the presiding officer's report and after due inquiry, the ECI may order re-polling at the affected polling station.
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Fact Box: Section 58 of the RPA Under Section 58 of the RPA (‘Fresh poll in the case of destruction, etc., of ballot boxes’), the EC can declare the poll at a polling station to be void if:
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Context
The moon recently crossed in front of the well-known red star Antares, as captured by the Indian Institute of Astrophysics (IIA) in Bengaluru.
What is Lunar Occulation?
- In astronomy, a lunar occultation is when the Moon blocks out another celestial object, like a star, planet, or asteroid.
- Because of the Moon's close vicinity, this phenomena, like an eclipse, can only be seen from particular points on Earth.
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About Antares:
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Context
The supersonic missile assisted release of torpedo (SMART) test was successfully carried out in flight by the Defence Research and Development Organization (DRDO).
What is SMART?
- A lightweight torpedo delivery system based on next-generation missiles is called SMART (Supersonic Missile Assisted Release of Torpedo).
- The missile system consists of: o a lightweight torpedo with a 20 km range; o a long-range supersonic missile carrier with a maximum speed of 643 kph; and o a payload of a 50 kg high explosive warhead.
- The missile has a two-stage solid propulsion system, precise inertial navigation, electromechanical actuators, and a datalink for torpedo terminal homing and mid-course upgrades.
Context
In an effort to create an institutional framework that will prevent front-running and fraudulent transactions in asset management firms (AMCs), SEBI has approved changes to its mutual fund laws.
About Front Running
- Other terms for front-running include tailgating and forward-trading.
- Trading stocks or any other financial asset while possessing intimate knowledge of a forthcoming transaction is known as front-running.
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Fact Box: About asset management company (AMC):
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S.No. |
Term |
About |
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1. |
Balanced fertilization |
It is the use of right ratio of nutrients as per soil or crop requirement. The requirement of nutrients such as Nitrogen, Phosphate and Potash are soil and crop specific. |
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2. |
Climate Finance |
It generally refers to finance for activities aiming to mitigate or adapt to the impacts of climate change. |
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3. |
Front-running
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Trading stocks or any other financial asset while possessing intimate knowledge of a forthcoming transaction. |
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4. |
Organic fertilizers |
They are fertilizers that are naturally produced. The main organic fertilizers are, peat, animal wastes, plant wastes from agriculture, and treated sewage sludge. |
Context:
A recent study led by scientists at the Indian Institute of Tropical Meteorology warns of significant warming of the Indian Ocean and its dire consequences, including marine heatwaves, cyclones, coral bleaching, and impacts on the fisheries sector.
Impact of Warming Indian Ocean:
- Oceanic Changes and Implications: The study highlights the alarming increase in temperature of the Indian Ocean, projecting a rise of 1.7°C to 3.8°C by 2100. This warming trend is expected to lead to a tenfold increase in marine heatwaves, potentially pushing the tropical Indian Ocean into a "near-permanent heatwave state" with adverse effects on marine ecosystems and cyclone formation.
- Consequences for Mainland India: The warming of the Indian Ocean has far-reaching implications for mainland India, including a rise in the frequency of severe cyclones and erratic monsoon patterns. These phenomena, linked to global warming and anthropogenic activities like fossil fuel burning, pose significant challenges for infrastructure development and disaster management in coastal regions.
- Need for Collaborative Action: Given the slow response of oceans to changes in greenhouse gas emissions, current global commitments may not suffice to mitigate the impacts of ocean warming. Therefore, the study emphasizes the importance of collaborative efforts among Indian Ocean bordering countries to invest in data gathering, research, and infrastructure development to adapt to and mitigate the impacts of climate change on coastal communities.
Context:
French economist Thomas Piketty and other economists have released findings on economic inequality trends in India, highlighting alarming levels of wealth and income disparity, and advocating for a wealth tax on the rich.
Analysis of Economic Inequality Trends:
- Trends in Income and Wealth Inequality:There are stark disparities in income and wealth distribution in India, with the top 1% owning a significant portion of total wealth and earning a disproportionate share of national income. However, the bottom 50% also face considerable challenges, owning minimal wealth and earning a small fraction of total income.
- Impact of Economic Growth and Market Liberalization: While economic growth has accelerated since the 1990s, benefiting the overall economy, the benefits have not been evenly distributed, exacerbating inequality.
- Arguments Against Wealth Redistribution:Measures such as wealth redistribution through measures like a wealth tax may have unintended consequences, affecting economic growth and exacerbating the plight of lower-income groups.
Debunking Myths and Proposing Solutions:
- Misconceptions: Economists challenges the notion that free market dynamics alone can address income and wealth disparities, highlighting systemic barriers that limit economic mobility for lower-income groups.
- Critique of Wealth Tax Proposals: The government should focus on reforms focused on dismantling special privileges enjoyed by the wealthy and promoting competition in the economy.
- Empowerment: Empowering the poor with access to capital and opportunities for skill development is essential for fostering inclusive economic growth.
Context
The concept of inheritance tax has re-entered public discourse in India recently. This has sparked significant debate and discussion regarding its potential implications for the country's economic and social landscape
Why a US model does not work for India:
- Global Variations in Inheritance Tax: Inheritance tax, prevalent in countries like South Africa, Brazil, and the US, is absent in emerging economies like India and China. The disparities in wealth distribution and the structure of economies across these nations make the application of a uniform inheritance tax model challenging.
- Challenges in Implementation: Wealthy individuals can easily circumvent inheritance tax through asset utilisation and wealth transfer strategies, making effective implementation problematic.
- Impact on Middle-Class Aspirations: Implementing inheritance tax could hinder wealth accumulation and investment, discouraging entrepreneurship and capital formation.
Threat to Middle-Class Aspirations:
- Disincentives for Wealth Accumulation: Such tax creates disincentives for wealth accumulation and investment, potentially hindering economic growth and entrepreneurship.
- Challenges of Inheritance Tax: Implementation of inheritance tax may lead to forced asset liquidation, resistance from taxpayers, and potential capital flight, undermining efforts to promote economic growth and social stability.
- Impact on Wealth Redistribution: Despite its aim to redistribute wealth, inheritance tax may not effectively reduce wealth inequality due to tax avoidance strategies employed by the wealthy, leaving the middle class more vulnerable to taxation.
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