GS Analyst: Daily Current Affairs

The Supreme Court's recent decision to grant interim bail to Arvind Kejriwal in the Delhi excise policy case has brought attention to the legal scope of the Prevention of Money Laundering Act (PMLA) and the powers of the Enforcement Directorate (ED).

ED's Powers and Issues:

• Under Section 19(1) of PMLA, ED officers have discretionary power to arrest individuals without requiring a warrant.
  • Issue: The SC questioned whether this power should be subjected to more stringent judicial scrutiny, considering factors like "need and necessity" for arrest.
• ED's statistics reveal a disparity between ECIRs recorded (5,906), searches conducted (531), persons arrested (513), and prosecution complaints filed (1,142).
  • Issue: This raises questions about ED's policy on when to arrest individuals involved in offences under PMLA.

Other Important Judgments on PMLA

• Vijay Madanlal Choudhary v. Union of India
  • The Supreme Court upheld various provisions of PMLA, including those related to arrest, attachment, search, and seizure by the ED.
  • The court held that these provisions have a reasonable connection with the Act's objective to prevent money laundering effectively.
• Chidambaram v. Directorate of Enforcement (2019)
  • The Supreme Court rejected a plea for anticipatory bail in a money laundering case and granted custody to the ED.
  • The court reasoned that money laundering cases involve complex stages of fund placement and layering, requiring a systematic and thorough investigation.
  • Granting pre-arrest bail would hinder this process and potentially compromise the investigation.

The NITI Aayog’s SDG India Index 2023-24 has been released, highlighting the performance of Indian states in achieving the United Nations’ Sustainable Development Goals (SDGs). The report shows significant progress in India's overall SDG score, indicating improvements in areas such as poverty reduction, economic growth, and climate action.

Key Findings

• Top Performers: Kerala and Uttarakhand emerged as the best-performing states, each scoring 79 points.
• Lowest Performer: Bihar scored the lowest with 57 points, followed by Jharkhand at 62 points.
• Overall Improvement: India’s SDG score improved to 71 points in 2023-24 from 66 points in 2020-21.
• Biggest Improvements: Punjab, Manipur, West Bengal, and Assam saw the highest increases, with Punjab jumping 8 points to 76, Manipur to 72, West Bengal to 70, and Assam to 65.
• Goals with Highest Increases: "No Poverty", "Decent Work and Economic Growth", and "Life on Land" saw the highest increases in points across states.
• Goals with Lowest Increases: "Gender Equality" and "Peace, Justice, and Strong Institutions" had the smallest increases.
• Reduction in Points: The goal "Reduced Inequalities" saw a decrease from 67 points in 2020-21 to 65 points in 2022-23.
• Detailed Insights
  • Zero Poverty: The score for this goal increased by 8 points to 72, indicating that extreme poverty is being addressed effectively.
  • Zero Hunger: Improved by 5 points to 52, but focus is needed on providing nutritious food to combat malnutrition.
  • Quality Education: Increased by 4 points to 61. While access to education has improved, the focus is now on enhancing the quality of education and ensuring better employment opportunities.
  • Gender Equality: The gender equality goal scored the lowest among all goals at 49 points, with only a 1-point increase from 2020-21. Issues such as sex ratio at birth, women owning land and assets, and women’s labor force participation are areas of concern.

The Supreme Court's recent hearing on a plea against the Jim Corbett National Park's decision to allow private operator's buses to ply within the core area of the tiger reserve in Uttarakhand has brought to the forefront the delicate balance between conservation and development.

Importance of Balance:

• The Supreme Court's emphasis on balancing rights highlights the need for a nuanced approach towards conservation.
• On one hand, there is a need to protect India's rich biodiversity and preserve natural habitats for future generations.
• On the other hand, there are legitimate concerns about livelihoods and economic development.

How can balance between conservation and development be achieved?

Achieving a balance between conservation and development in the case of Jim Corbett National Park requires a multi-faceted approach.

• Sustainable Tourism: Implement responsible and regulated tourism practices that prioritize wildlife viewing and minimize human impact on the ecosystem. This can include:
  • Limiting the number of tourists and vehicles entering the park.
  • Implementing eco-friendly transportation options, such as electric or solar-powered vehicles.
  • Providing education and awareness programs for tourists on responsible wildlife viewing and park rules.
• Alternative Livelihoods: Support alternative livelihood options for local communities that reduce their dependence on forest resources and promote coexistence with wildlife. This can include:
  • Promoting ecotourism-related jobs, such as guides, hospitality staff, and nature interpreters.
  • Encouraging sustainable agriculture practices, such as organic farming and permaculture.
  • Supporting local entrepreneurship in crafts, handicrafts, and other non-forest-based industries.
• Compensation Mechanisms: Establish fair compensation mechanisms for local communities affected by conservation efforts. This can include:
  • Providing financial compensation for crop damage or livestock loss due to wildlife conflict.
  • Offering alternative land use options or relocation packages for communities living within the park's boundaries.
• Community Engagement: Foster active community engagement in conservation efforts through participatory decision-making processes. This can include:
  • Establishing village-level conservation committees to monitor human-wildlife conflict and develop mitigation strategies.
  • Conducting regular community outreach programs to educate locals about conservation goals and benefits.
• Infrastructure Development: Develop infrastructure that supports both conservation and development goals

The National Bank for Agriculture and Rural Development (NABARD) has announced the launch of a Rs 750-crore agri fund, dubbed 'Agri-SURE', to promote investment in innovative and technology-driven initiatives in agriculture and allied areas. The fund aims to support startups and rural enterprises, driving sustainable growth and development in the agricultural sector.

About Agri-SURE

• Agri-SURE is a fund launched by NABVENTURES, a subsidiary of NABARD, with an initial corpus of Rs 750 crore.
  • The fund has received contributions of Rs 250 crore each from NABARD and the Ministry of Agriculture, as well as Rs 250 crore from other institutions.
• Objectives: The primary objective of Agri-SURE is to promote investment in high-risk, high-impact activities in agriculture and allied areas.
• Investment Strategy: Agri-SURE will provide support through investments in sector-specific, sector-agnostic, and debt Alternative Investment Funds (AIFs), as well as direct equity support to startups. The fund aims to support approximately 85 agri startups with investment sizes of up to Rs 25 crore each by the end of its term.
• Focus Areas: The fund's focus areas include:
  • Promoting innovative, technology-driven initiatives in agriculture
  • Enhancing the farm produce value chain
  • Creating new rural ecosystem linkages and infrastructure
  • Generating employment
  • Supporting Farmers Producer Organizations (FPOs)
  • Encouraging entrepreneurship through IT-based solutions
  • Machinery rental services for farmers

India's HAL is in talks to produce and export Sukhoi Su-30 fighter jets, marking a significant advancement in India's defense manufacturing capabilities. 

About SU-30 Fighter Jets?

• The Su-30 (Flanker-C) Russian Multirole Fighter Aircraft is a twin-engine, two-seat supermaneuverable fighter aircraft developed in the Soviet Union by Russia's Sukhoi Aviation Corporation.
• It is a multirole fighter for all-weather, air-to-air, and air-to-surface deep interdiction missions.
• The Su-30 started out as an internal development project in the Sukhoi Su-27 family by Sukhoi.
• The design plan was revamped and the name was made official by the Russian Defense Ministry in 1996.
• Of the Flanker family, the Su-27, Su-30, Su-33, Su-34, and Su-35 have been ordered into limited or serial production by the Defense Ministry.

In a bid to ensure the sustainable harvest and trade of rosewood species, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) has rolled out new guidelines for its member countries.

Key-highlights of the Guidelines:

• The guidelines emphasize capacity-building efforts for managing CITES-listed rosewood species.
• In particular, the focus is on 13 high-priority and 14 medium-priority species identified in the Report on the Conservation and Trade of CITES-Listed Rosewood Tree Species [Leguminosae (Fabaceae)].
• Pterocarpus erinaceus: A significant portion of the discussions centered around Pterocarpus erinaceus, commonly known as African rosewood.
  • Native to West Africa, this species is among the most threatened due to over-exploitation and illegal trade.
  • CITES has recommended trade suspensions for range states of Pterocarpus erinaceus to address these concerns.
• Non-Detriment Findings (NDFs): The guidelines called for strengthening of Non-Detriment Findings (NDFs) for tree species.
  • NDFs are essential for ensuring that international trade in CITES-listed species does not harm their populations in the wild.
  • They support sustainable global trade, benefiting both the countries where these species originate and the industries in the production and destination countries.

In a significant discovery, scientists from the Zoological Survey of India (ZSI) have identified a new species of dogfish shark, named Squalus hima, off the coast of Kerala.

Characteristics of Squalus hima

• Squalus hima belongs to the genus Squalus, commonly known as spurdog
• These dogfish sharks are characterized by smooth dorsal fin spines, angular short snouts, small mouths almost as wide as their snouts, and bodies without spots.
• They are exploited for their liver oil, which contains high levels of squalene, a highly sought-after ingredient in the pharmaceutical industry for making high-end cosmetic and anti-cancerous products.

Prime Minister Narendra Modi's visit to Moscow, his first "stand-alone" visit during this tenure, aimed at reinforcing bilateral ties but sparked global criticism due to its timing amidst the ongoing Ukraine conflict.

Bilateral Outcomes and Reaffirmations:

• Renewed Ties: Reaffirmation of India-Russia relations and personal rapport between Modi and Putin, with Modi receiving Russia's highest civilian award.
• Economic Focus: Bilateral trade target set at $100 billion by 2030, emphasizing economic engagement over traditional military purchases.
• Humanitarian Concern: Putin's assurance to allow Indian recruits in the Russian Army to return home.

Global Reactions and Balancing Act:

• Criticism from Allies: Unprecedented criticism from Kyiv and Washington on the visit's timing, especially amidst Ukraine missile attacks.
• Diplomatic Messaging: Modi's statement on "no solution on the battlefield" and subsequent Vienna visit seen as attempts to balance the trip.
• Hypocrisy Highlighted: Western concerns over Russia's actions contrasted with their muted response to civilian casualties in Gaza.

Challenges and Future Implications:

• Damage Control: India faces the task of limiting damage to ties with the U.S. and Europe following their open criticism.
• Asserting Independence: Long-term need for India to convince the West of its independent stance and futility of forced alignment.
• Navigating Polarization: Balancing act becomes more challenging in an increasingly polarized world, requiring deft diplomacy.

UPSC Mains Questions:

Q. "India's independent foreign policy stance is increasingly challenged in the current geopolitical climate." Discuss with reference to India's relations with Russia and the West.

The recent NATO summit in Washington DC highlights the alliance's support for Ukraine amidst potential changes in US leadership and its increasing focus on China, contrasting with India's multi-alignment diplomacy.

NATO's Evolving Strategy:

• Ukraine Support: NATO committed $43 billion in direct military aid to Ukraine, establishing a liaison office in Kyiv for aid coordination.
• Trump-proofing Measures: Initiatives taken to bolster European security and Ukraine's defense capabilities in anticipation of potential US policy shifts.
• Indo-Pacific Focus: NATO's Strategic Concept 2022 emphasizes China, merging Euro-Atlantic and Indo-Pacific security theaters.

Challenges and Uncertainties:

• Resource Constraints: NATO faces resource limitations with multiple commitments to Ukraine, Israel, Taiwan, and internal stock replenishment.
• Membership Dilemma: Lack of clear timeline for Ukraine's NATO membership, despite long-term security agreements with individual nations.
• Trump Factor: Possibility of reduced US support to NATO and Ukraine under a potential Trump presidency.

India's Diplomatic Balancing Act:

• Multi-alignment Approach: PM Modi's Moscow visit balanced with a trip to Austria, showcasing India's nuanced diplomacy.
• Convergence on China: Potential for informal dialogue with NATO on hybrid threats in the Indo-Pacific, aligning with India's concerns about China.
• Peace Efforts: India's ongoing attempts to promote diplomatic solutions to the Ukraine conflict, despite challenging geopolitical dynamics.

UPSC Mains Question

Q. "India's multi-alignment diplomacy faces increasing challenges in a polarized world." Discuss with reference to India's relations with Russia, the West, and its stance on the Ukraine conflict.

The release of data from the Household Consumption Expenditure Survey (HCES):2022-23 has sparked renewed interest in analyzing the impact of the Public Distribution System (PDS) on household expenditure patterns and poverty metrics in India.

Key Findings from HCES:2022-23:

• PDS Coverage: Up to 75% of rural and 50% of urban populations are eligible for subsidized foodgrains under NFSA, 2013.
• Imputation Methodology: NSSO imputed values for free food items, with 94-95% of imputed value attributable to food items from PDS.
• Consumption Impact: Average imputed value for food is ?82 in rural areas and ?59 in urban areas, indicating significant impact on household consumption.

Impact on Consumption Patterns and Poverty Metrics:

• Upward Mobility: 20% of those in the bottom 5% of rural MPCE distribution (about 86 lakh individuals) move to the next fractile class when considering imputed values.
• Urban Effects: Similar upward movement observed in urban areas and across major states, suggesting widespread impact of PDS.
• Poverty Line Debate: Need for reconsideration of poverty line drawing methods in light of PDS impact on total value of consumption.

Challenges in Data Interpretation and Policy Implications:

• Survey Limitations: HCES:2022-23 not designed to provide precise estimates of scheme coverage, with survey estimates often lower than administrative data.
• Imputation Complexities: Imputation done only for free items, not subsidized purchases from PDS, potentially underestimating total impact.
• Policy Considerations: Need for larger discussion on poverty line determination and refinement of social security programs based on consumption pattern insights.

UPSC Mains Questions:

Q. Analyze the impact of the Public Distribution System on household consumption patterns in India. How does this affect our understanding of poverty metrics?