GS Analyst: Daily Current Affairs

India, with the help of US Space Force, will set up its first semiconductor fabrication plant solely dedicated to national security, an initiative that will provide critical chips to the US military, allied forces, and India’s own defence sector.

Key Highlights

• Named 'Shakti,' the fabrication plant will be one of the world's first multi-material fabs dedicated to national security. The facility is likely to come up in UP's Jewar in 2025.
• The new semiconductor plant is set to specialise in the production of advanced components for a range of crucial applications, including national security, next-generation telecommunications, and green energy technologies.
• Key Partnerships: The initiative involves collaboration with strategic partners like Bharat Semi and 3rdiTech, alongside the US Space Force.
• Types of Semiconductors: The facility will specialize in advanced semiconductors, including infrared, gallium nitride, and silicon carbide, vital for cutting-edge applications.
  • The infrared, gallium nitride and silicon carbide semiconductors fall under the category known as compound semiconductors. According to sources, India’s current imports bill for these semiconductors for national security alone is USD 1 billion a year
• The initiative supports India’s National Quantum Mission and aligns with India's broader goals in semiconductor manufacturing (India Semiconductor Mission).
• Future Space Cooperation: Furthermore, both countries are also likely to work in the space sector, with both countries making strides towards the first joint NASA-ISRO mission to the International Space Station in 2025.
• Other efforts to strengthen semiconductor supply chains
  • GlobalFoundries’ (GF) new GF Kolkata Power Center: It will foster collaboration in chip manufacturing research and development. It is expected to drive breakthroughs in zero and low-emission technologies, connected vehicles, the Internet of Things (IoT), artificial intelligence (AI), and data centers.

Role of Semiconductors

• Semiconductors is a foundational industry. With the advent of artificial intelligence (AI), chips are being used in medical instruments, mobile phones, laptops, cars, trucks, trains, televisions and practically every device on earth India is a major consumer of chips and has built the world's best digital public infrastructure (DPI) on this chip.
• This small chip is playing a significant role in ensuring last-mile delivery in Bharat.
• Whether it is the unified payments interface (UPI), RuPay card, Digi Locker, or Digi Yatra, various digital platforms have become part of everyday life.
• The demand for data centres in the country is continuously rising and these run on chips.
• Key-Initiatives: Semicon India Programme and the India Semiconductor Mission (ISM)
  • India has been elected Vice Chair of the Indo-Pacific Economic Framework's Supply Chain Council.
  • India is also a significant partner in the QUAD Semiconductor Supply Chain Initiative.
  • Other than US, it has recently signed agreements with several countries including Japan and Singapore.
  • The chip fabrication facility in Dholera, Gujarat, is being set up by Tata Electronics.
  • The Semiconductor Assembly, Testing, Marking and Packaging (ATMP) facility in Morigaon, Assam is being set up by Tata Electronics.
  • The Maharashtra government has approved a chip manufacturing project (Panvel in Raigad district), to be jointly set up by Israel's Tower Semiconductor and the Adani Group.
  • The Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat is being set up by CG Power and Industrial Solutions Ltd.
  • The Cabinet has also approved the proposal of Kaynes Semicon to set up a semiconductor unit in Sanand, Gujarat.

Significance of the Agreement

• Strengthening commercial sector: It will focus on three essential pillars for modern war fighting: advanced sensing, advanced communications and high voltage power electronics. These three areas also have huge growing needs for commercial sectors such as railways, telecom infrastructure and data centres and green energy.
• National asset: This facility will be seen as a national asset, further advancing India’s ambitions to become a net security provider in the region. India currently imports semiconductors worth USD 1 billion annually for national security purposes alone.

The recent report on atrocities against Scheduled Castes (SCs) and Scheduled Tribes (STs) in India has garnered significant attention due to alarming statistics regarding caste-based violence. Released under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, the report sheds light on the prevalence of these crimes, the efficacy of legal responses, and the overall safety of marginalized communities in India.

Key Highlights of the Report

• Concentration of Cases:
  • Scheduled Castes: Nearly 97.7% of atrocities against SCs in 2022 were reported from just 13 states, with Uttar Pradesh, Rajasthan, and Madhya Pradesh leading in numbers.
    • Uttar Pradesh: 12,287 cases (23.78% of total).
    • Rajasthan: 8,651 cases (16.75%).
    • Madhya Pradesh: 7,732 cases (14.97%).
    • Other significant states include Bihar (6,799 cases), Odisha (3,576), and Maharashtra (2,706), which collectively account for approximately 81% of all SC-related cases.
  • Scheduled Tribes: For STs, 98.91% of reported atrocities also concentrated in 13 states.
    • Madhya Pradesh: 2,979 cases (30.61% of total ST cases).
    • Rajasthan: 2,498 cases (25.66%).
    • Odisha: 773 cases (7.94%).
    • Other notable states include Maharashtra (691 cases) and Andhra Pradesh (499 cases).
  • Total Registered Cases: A total of 51,656 cases were registered under the SC/ST Act for SCs, while 9,735 cases were reported for STs in 2022.
  • Investigation and Charge-Sheeting:
    • SC Cases:
      • 38% resulted in charge sheets.
      • 78% were concluded with final reports due to false claims or lack of evidence.
      • Pending Investigations: 17,166 cases.
    • ST Cases:
      • 32% resulted in charge sheets.
      • 71% concluded with final reports.
      • Pending Investigations: 2,702 cases.
    • Conviction Rates: The conviction rate for cases under the Act declined to 4% in 2022 from 39.2% in 2020, indicating a worrying trend in legal accountability.
    • Special Courts: Of 498 districts in 14 states, only 194 have established special courts to expedite trials under the SC/ST Act, highlighting inadequate judicial infrastructure to handle such cases.
    • Atrocity Prone Districts: Only 10 states and Union Territories identified districts prone to atrocities, while Uttar Pradesh, despite high case numbers, claimed no atrocity-prone areas.

Why violence against dalits continues to rise?

• Brahmanical Order and Caste Hierarchies: The deeply entrenched Brahmanical social structure perpetuates notions of superiority among upper castes, reinforcing their control over Dalits. This psychological ascendancy enables continued discrimination and violence.
• Feudal Power Dynamics: In rural areas, the feudal system is closely tied to caste and gender hierarchies. Upper and middle castes, who predominantly own land, maintain power over landless Dalits.
• Economic Disparities: Dalits often work as landless laborers with little access to education and economic opportunities. The disparity in land ownership leads to a systemic oppression that manifests as violence, as upper castes feel threatened by any assertion of rights or autonomy from Dalits.
• Normalization of Atrocities: Dehumanizing acts, such as forced consumption of waste or physical humiliation, are prevalent in certain areas. Such atrocities are often normalized within communities.
• Urbanization and Globalization: Rapid urbanization, influenced by globalization, has created new forms of caste-based exploitation. In urban settings, Dalits often find themselves relegated to low-wage, menial jobs. The exploitation continues, with manual scavenging being a particularly egregious example of caste violence.
• Intersection of Gender and Caste: It amplifies violence, particularly against Dalit women. They face dual oppression, both from their caste status and gender, leading to increased vulnerability to sexual violence and discrimination.

Solutions

• Strengthening Legal Frameworks: While laws exist to protect Dalits, enforcement remains weak. Strengthening the implementation of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act and ensuring swift justice can deter violence.
• Education and Awareness: Comprehensive education programs aimed at both Dalits and upper-caste communities can challenge caste-based prejudices and promote social equality. Awareness campaigns should focus on the rights of Dalits and the importance of respecting human dignity.
• Providing access to education, vocational training, and employment opportunities can empower Dalits economically.
• Encouraging dialogue and engagement between different caste communities can foster mutual understanding and respect.
• Policies addressing the specific challenges faced by Dalit women should be prioritized. Empowering women through education, economic opportunities, and legal protections can mitigate violence and promote gender equality.
• Regular monitoring of violence against Dalits and the effectiveness of protective measures is crucial. Accountability mechanisms for law enforcement and local authorities can help ensure that perpetrators are prosecuted and victims receive justice.

India's GDP measurement is in discussion due to the proposed revision of the base year from 2011-12 to 2020-21, with the National Statistical Office considering the use of Goods and Services Tax (GST) data, raising concerns about accuracy and the need for validation amidst skepticism over past overestimations.

What is GDP?

• Gross Domestic Product (GDP) is a key indicator of a country's economic size. It measures the total value of goods and services produced over a specific period and is used to compare economic performance across countries.
• The GDP growth rate is calculated by comparing the GDP of one period with the GDP of a previous period.
• Current Base Year and Proposed Change
  • The current GDP calculation uses 2011-12 as the base year.
  • A revision is planned to change the base year to 2020-21.
  • This change aims to better reflect economic conditions and improve accuracy.

Why Change the Base Year?

• The National Statistical Office (NSO) is considering using Goods and Services Tax (GST) data instead of the current MCA-21 database, which records corporate financial data.
• GST data is thought to provide a more comprehensive view of economic activity.
• Challenges with the Current System
  • The MCA-21 database was introduced in the last revision but has faced criticism for overestimating growth.
  • Previous estimates showed a significant difference in growth rates between the new GDP series and older data, raising doubts about accuracy.
• Concerns About Using GST Data
  • While GST data could enhance GDP estimates, its effectiveness is uncertain without thorough testing.
  • The NSO is urged to conduct pilot studies to validate GST data for specific industries and regions.
  • Transparency and independent verification of the GST data are crucial for establishing trust in GDP estimates.

The recent controversy surrounding adulterated ghee in Tirupati's laddus has shone a spotlight on a broader issue: the oversight of food safety in India.

Food safety framework in India

• The Food Safety and Standards Authority of India (FSSAI), established in 2006, is the central body responsible for ensuring food safety and regulating the food industry.
• The FSSAI sets science-based standards for food production, storage, distribution, and sale.
• It also licenses food businesses and conducts inspections to ensure compliance.
• Key Regulations and Standards
  • Food Safety and Standards Act, 2006: This act consolidates various laws related to food safety standardsand establishes the FSSAI. It provides a single reference point for all matters related to food safety and standards, thereby ensuring a more streamlined regulatory approach.
    • The Act covers all food businesses
  • Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011: These regulations mandate that all food businesses, from small vendors to large manufacturers, obtain a license or register with the FSSAI. This helps in maintaining a database of food business operators and ensures that they comply with food safety standards.

Challenges of Food Safety in India

• Low Awareness: Many people, especially outside urban areas, are unaware of food hygiene practices. Safe food is often seen as a luxury rather than a necessity.
• Limited Infrastructure: Food manufacturing and processing facilities often lack resources for maintaining proper hygiene.
• Food Adulteration: There has been a significant increase in food adulteration cases, rising from 15% in 2012 to 28% in 2019. Many manufacturers evade mandatory product registration, complicating detection.
• Poor Traceability: Companies struggle to trace ingredients, particularly raw agricultural products.
• Price Sensitivity: Many food manufacturers focus on keeping costs low to remain affordable.

The legacy waste management project under Swachh Bharat Mission 2.0 has faced significant challenges since its launch.

Current Status

• Progress: Out of 2,424 identified dumpsites, only 470 have been completely remediated, which represents about 19% of the total.
• Area Reclaimed: Approximately 4,552 acres (16%) of the total 28,460.33 acres of legacy waste sites have been reclaimed, leaving 84% still untouched.
• Ongoing Projects: Remediation is ongoing for 1,224 sites, while 730 remain untouched.
• Top Performers: Tamil Nadu has reclaimed 837 acres (42% of its total dumpsite area). Gujarat leads in the percentage of area reclaimed, with 75% of its landfill area remediated.

The Indian rhinoceros, once on the brink of extinction, has seen a remarkable resurgence in its population, thanks to decades of dedicated conservation efforts by the government and the forest department. From a staggering low of just 200 individuals at the start of the 20th century, India now boasts over 2,600 rhinos, housing approximately 85% of the world’s total Indian rhino population.

Key-initiatives to conserve Rhino

• India banned rhino hunting in 1910.
• World Rhino Day is celebrated every 22 September.
• The Indian Rhino Vision 2020 (IRV 2020) program aimed to reintroduce rhinos to Laokhowa Wildlife Sanctuary in Assam. 
• Project Rhino is an initiative that aims to protect India’s rhino population. It focuses on preventing poaching, improving habitats, and raising public awareness. 
• Important Rhino Habitat:
  • Kaziranga National Park in Assam. Kaziranga has become synonymous with rhino conservation, with over 2,600 individuals residing there today—making it home to more than 70% of the world’s Indian rhinoceros population.  
    • It is the single largest undisturbed and representative area in the Brahmaputra Valley floodplain.
    • It was declared as a National Park in 1974.
    • It has been declared a tiger reserve since 2007. It has a total tiger reserve area of 1,030 sq km with a core area of 430 sq. km.
    • It was declared a UNESCO World Heritage Site in 1985.
    • It is recognized as an Important Bird Area by BirdLife International.
  • Dudhwa National Park, Uttar Pradesh, where a population of 38 rhinos now thrives after re-introduction efforts in the 1980s. 
  • Manas National Park (UNESCO World Heritage Site)
  • Jaldapara National Park 
  • Pobitora Wildlife Sanctuary
  • Rajaji National Park 
  • Keoladeo National Park (UNESCO World Heritage Site )

President Joe Biden hosted the sixth Quad summit in Wilmington, Delaware, marking significant discussions among leaders from Australia, India, Japan, and the US. The summit aimed to reinforce cooperation on various initiatives while addressing regional challenges, notably the increasing assertiveness of China.

Achievements of the Quad

• Diverse Initiatives: The Quad discussed a range of agreements, including healthcare initiatives, cybersecurity cooperation, and joint port development in the Indo-Pacific region.
• Public Goods Focus: By concentrating on public goods rather than military alliances, the Quad has managed to maintain a non-threatening image, avoiding the label of an "Asian NATO."
• Acceptance by ASEAN: The Quad’s approach has gained acceptance from ASEAN countries, which appreciate its non-aggressive stance on security issues.

Military Cooperation Dynamics

• Separation from Military Alliances: The Quad leaders clarified that their forum is not aimed at countering China directly, despite concurrent military collaborations, such as AUKUS and trilateral security initiatives.
• India's Unique Position: India’s role as the only non-allied country in the Quad allows it to pursue a broader regional cooperation agenda without compromising its non-alignment policy.
• Enhanced Military Ties: India and the US have deepened military cooperation, creating a political space to manage relations with both Washington and Beijing effectively.

Diplomatic Space and Future Engagements

• China's Diplomatic Intentions: Biden noted that Xi Jinping seeks diplomatic space to focus on domestic challenges, suggesting potential for renewed engagement with China.
• Opportunities for Modi: Prime Minister Narendra Modi may have several chances to engage with Xi Jinping at upcoming multilateral forums, including the G-20 and BRICS.
• Quad's Evolving Role: The Quad’s nuanced approach toward China may provide more diplomatic avenues for India, facilitating a balanced strategy in the region.

Practice Question

Q. Discuss the significance of the Quad in addressing regional security challenges in the Indo-Pacific, especially in the context of China’s rising influence and India’s strategic interests. What are the implications for India’s foreign policy and regional diplomacy?

The demand for a national security strategy in India is gaining momentum as regional instability increases, with historical rivals enhancing their military capabilities and new alliances remaining uncertain. Simultaneously, India aims to achieve its economic ambition of becoming a USD 4 trillion economy amid global disruptions from ongoing conflicts in Ukraine and Gaza, necessitating prioritization of resources for national security.

Defining National Security

• Varied Interpretations: National security encompasses different meanings for various states and evolves over time, reflecting unique geopolitical contexts.
• S. Approach: The U.S. views national security as a combination of values and national interests, emphasizing economic strength while maintaining democratic principles.
• Need for a Unified Strategy: India requires a coherent national security strategy that integrates defense, finance, and climate change, tailored to its specific threats and vulnerabilities.

Multi-Alignment Strategy

• Shift from Non-Alignment: India’s previous non-alignment stance has transformed into "multi-alignment," engaging with multiple powers for potential support, particularly against China.
• Role of Alliances: Engagements like the Quad signify India's strategic partnerships, while BRICS illustrates a cautious approach to maintain economic ties without full dependence on the West.
• Limitations in Defense: India’s defense capabilities, particularly in naval strength, highlight the challenges faced in countering threats from adversaries like China.

Strategic Document Necessity

• Secrecy in Strategy: A national security document must address sensitive threats and weaknesses while avoiding public disclosures that could jeopardize strategic initiatives.
• Economic Integration: The strategy should link national security to economic priorities, guiding industry and financial institutions toward cohesive objectives.
• Recommendations for Clarity: Simplifying the document and keeping it confidential are essential, as public disclosures could reveal strategic intentions to adversaries.

Practice Question

Critically evaluate the necessity of a comprehensive national security strategy for India, considering its implications for defense, economic stability, and international relations in the current geopolitical landscape.

The discussion surrounding the Goods and Services Tax (GST) compensation cess is becoming prominent as the deadline for its current application approaches in March 2026. The GST Council is evaluating the future of this cess, which was originally implemented to compensate states for revenue losses. Recent financial reports indicate significant compensation disbursements and highlight the necessity for clarity on the cess’s role moving forward.

GST Compensation Mechanism

• Historical Context: The GST compensation mechanism was designed to protect states from revenue losses due to GST implementation, initially guaranteeing a 14% growth over 2015-16 revenues.
• Financial Transfers: From July 2017 to March 2023, the government disbursed Rs 8.8 trillion to states as compensation, with a significant concentration in ten large states like Maharashtra and Tamil Nadu.
• Loan Repayment Plan: The GST Council has proposed to repay the Rs 2.7 trillion compensation loan by January 2026, two months ahead of the cessation of the compensation period.

Future of the Compensation Cess

• Cess Relevance: With the original purpose of the GST compensation cess diminishing, there is a need to reassess its continuation beyond March 2026.
• Group of Ministers: The GST Council has recommended forming a Group of Ministers to evaluate the future of the compensation cess and potential uses for the surplus funds.
• Options for Revamping: Potential revamping of the cess could involve rebranding it as a green cess to fund environmental projects, aligning with India’s climate goals.

Implications of Taxing POL Products

• POL Products and GST: Petroleum, oils, and lubricants (POL) remain outside the GST framework, and including them could enable businesses to claim input tax credits, lowering operational costs.
• State Autonomy Concerns: Bringing POL products under GST would reduce state fiscal autonomy, as states currently enjoy flexibility in setting tax rates on these products.
• Need for a Grand Bargain: To encourage states to include POL products under GST, a compensation mechanism using cess proceeds could be necessary to mitigate any revenue losses.

Practice Question

Q. Critically analyze the implications of the GST compensation cess's future on state finances and the overall economic landscape in India, considering both the potential transition of petroleum products into the GST framework and the need for environmental funding.