GS Analyst: Daily Current Affairs

Context:

Climate Smart Agriculture is the answer to the two most important issues faced by humanity in the 21st century (climate change and food insecurity.)

Climate Change Challenges and Farming Practices

• Food Demand and Climate Impact: Meeting the rising food demand amid climate change poses dual challenges, requiring adaptation measures as traditional farming methods become less productive.
• Productivity Imperative: The imperative to enhance agricultural production by 60% before 2050 necessitates a comprehensive strategy to address the growing demand for food.
• Farmers' Response: Faced with reduced productivity, farmers respond by adopting adaptation measures, highlighting the urgency of innovative and sustainable farming practices.

The Role of Climate-Smart Agriculture (CSA)

• Holistic Approach: Climate-smart agriculture (CSA) offers a holistic framework with three objectives: sustainable productivity increase, climate change adaptation, and greenhouse gas emission reduction.
• Diverse Practices: CSA incorporates diverse practices, from water-smart to carbon-smart, effectively addressing productivity concerns, land degradation, and soil health in the face of climate challenges.
• Innovative Solutions: Implementing innovative practices, CSA serves as a proactive response to climate challenges, ensuring sustainable agriculture by mitigating risks and promoting ecological stability.

Advantages of CSA and Its Role in Climate Action

• Diverse Benefits of CSA: CSA delivers varied advantages, fostering crop diversification, improving water efficiency, and enhancing resilience to climate disruptions for sustainable agriculture.
• Global Climate Alignment: Beyond economic gains, CSA contributes to global climate goals, aiding carbon storage, and aligning with international commitments, showcasing its environmental significance.
• Empowering Small Farmers: CSA, supported by government initiatives and collaborations, stands as a unique opportunity to empower small farmers, ensure food security, and promote sustainability in agriculture.

Context:

Rewriting of Indian Constitution in light amidst ‘Samvidhan Diwas’

Constitution-Making Prowess

• Ample Deliberation: The Constituent Assembly, chaired by Dr. B.R Ambedkar, meticulously addressed concerns, with 7,635 amendments considered.
• Hope for the Underprivileged: The Constitution, born from rigorous debates, instilled new hope, especially for millions of underprivileged citizens.
• Exemplary Duration: The process spanned 114 working days over almost three years, shaping a comprehensive document containing 395 articles and eight schedules.

Challenges and Influences

• Colonial Comparisons: Criticism as a "colonial constitution" arises from similarities to the Government of India Act 1935, reflecting British colonial influences.
• Historical Realities: Dr Rajendra Prasad asserted that India's constitution wasn't bound by global norms, emphasizing historical realities, like the Simon Commission challenge in 1927.
• Foundation in Dissent: The Nehru Report of 1928, initially lacking consensus, became a cornerstone for future constitutional struggles, addressing vital issues like fundamental rights.

Contemporary Relevance and Caution

• Endurance of the Constitution: Calls for a new constitution notwithstanding, the existing one, shaped by Indian realities, has proven enduring.
• Global Stability Models: Major nations, such as the US, demonstrate stability without frequent constitutional revisions, suggesting the resilience of established constitutional frameworks.
• Need for Consensus: The call for rewriting necessitates consensus, echoing the principle of a "fair measure of general agreement" among the Indian populace. Rajendra Prasad's caution underscores the role of capable and ethical leaders in navigating a flawed constitution.

Context:

Reserve Bank of India had, in its financial stability report, pointed out that retail loans had grown at almost twice the pace of gross advances over the past two years.

Changing Loan Composition

• RBI Report Highlights Shift: RBI expressed concern over the changing composition of secured and unsecured loans in total advances during a specific period.
• Growing Share of Unsecured Loans: The report noted an increase in the share of unsecured loans, raising concerns about potential risks.
• Special Mention Accounts in Retail Segment: The proportion of special mention accounts in both secured and unsecured advances raised alarms in the retail segment.

RBI's Response and Advisory

• Governor's Advisory: RBI Governor Shaktikanta Das advised banks and NBFCs to strengthen internal surveillance mechanisms and address potential risks.
• Implementation of Measures: RBI raised risk weights for consumer loans, excluding certain categories, aiming to curb exuberance in unsecured lending.
• Focus on NBFC Exposure: Regulatory measures targeted specific segments, especially loans below Rs 50,000, where NBFCs have substantial exposure.

Potential Impacts and Need for Vigilance

• Cost of Capital Impact: Regulatory measures could impact the cost of capital for loans, influencing both the supply and demand sides.
• Concerns about Unsecured Loans: Growing concerns about the surge in unsecured loans reflect worries about borrowers' repayment capabilities and potential default risks.
• Ongoing Vigilance and Regulatory Interventions: Continuous monitoring and targeted regulatory interventions are crucial to mitigate risks and ensure financial system stability.