GS Analyst: Daily Current Affairs

The representation of women in corporate roles in India has long been below 30% and has shown signs of stagnation or even decline in the post-pandemic years. This trend is highlighted in a report by LinkedIn titled "Women in Leadership in Corporate India."

Sector-Wise Representation

The report provides data on the representation of women in leadership roles across various sectors:

• Highest Representation: Education (30%) and Government Administration (29%) have the highest representation of women in leadership roles.
• Moderate Representation: Technology, Information, and Media, and Financial Services sectors have a moderate female representation in leadership at 19%.
• Lowest Representation: Construction, Oil, Gas, and Mining, and Utilities sectors have the lowest female representation in leadership at 11%, followed by Wholesale and Manufacturing at 12%, and Accommodation and Food Services at 15%.

Factors Contributing to Decline

• Reduction in hybrid or work-from-home roles has suppressed the growth of female participation in the corporate labor market.
• Women still face significant obstacles in reaching leadership roles due to bias, societal norms, and structural barriers.
• Structural barriers such as lack of access to education, limited professional networks, and inadequate support systems for working mothers also play significant roles.

Suggestions for Improvement

• Skills-First Approach to Hiring: This approach focuses on hiring based on skills rather than gendered assumptions about a prospective employee's capabilities.
• Mentorship and Networking Opportunities: Providing mentorship and networking opportunities can help women advance in their careers.
• Shared Parental Leave: Implementing shared parental leave can support women in balancing work and family responsibilities.

Societal Analysis

From a societal perspective, the underrepresentation of women in corporate leadership roles in India reflects broader gender inequality issues.

• Gender Norms and Biases: Deep-rooted societal norms and biases against women in leadership positions need to be addressed through education and awareness programs.
• Structural Barriers: Policies and initiatives should focus on removing structural barriers that prevent women from advancing in their careers.
• Support Systems: Enhancing support systems for women, such as affordable childcare and flexible working conditions, can help increase their participation in the workforce.
• Role Models and Mentors: Encouraging successful women leaders to serve as role models and mentors can inspire and guide other women in their professional journeys.

May 31st marks World No Tobacco Day, WHO’s global campaign to raise awareness about the dangers of tobacco use and advocate for effective policies to reduce consumption. This year's theme, "Protecting Children from Tobacco Industry Interference," underscores the critical need to safeguard people from the manipulative tactics of the tobacco industry.

The Impact of Tobacco

• Tobacco is the leading preventable cause of disease and death worldwide.
• Health: In India, nearly 26 crore people consume tobacco, and over 60 lakh people employed in the tobacco industry are at risk of health issues due to skin absorption of tobacco.
• Environmental Cost: Beyond human health, tobacco cultivation depletes soil nutrients, requiring more fertilizers and causing deforestation. Processing 1 kg of tobacco requires 5.4 kg of wood.
• Economic Costs: A 2021 study estimated that tobacco's health impacts cost India over Rs 1.7 lakh crore in 2017-2018, compared to the Union Budget's health allocation of Rs 48,000 crore that year.
  • Cleaning up tobacco waste costs an additional Rs 6,367 crore annually. These figures exclude the environmental costs of soil erosion and deforestation.
  • Annually, tobacco production and consumption generate around 1.7 lakh tonnes of waste.
• Child labour: Indian bidis feature on the US’s 2022 List of Goods Produced by Child Labor or Forced Labor.

Awareness and Control Programs

• India is a signatory to the WHO’s Framework Convention on Tobacco Control (FCTC) since 2005.
• The Cigarettes and Other Tobacco Products Act (COTPA) 2003 regulates tobacco production, advertisement, and consumption.
• The National Tobacco Control Program (NTCP), launched in 2007, aims to enforce COTPA and FCTC, raise awareness about tobacco harms, and support cessation efforts. Tobacco taxation is also used to control consumption.
• India banned foreign direct investment (FDI) in tobacco manufacturing in 2010.

Implementation Challenges

• Despite existing measures, enforcement is weak. Smokeless tobacco products often do not comply with COTPA packaging guidelines, and smuggled products are poorly regulated.
• Fines for COTPA violations have not been updated since 2003, remaining low and ineffective. Indirect advertising through surrogate products like elaichi allows tobacco brands to bypass direct advertisement bans.
• Proposed Amendments: Amendments to COTPA proposed in 2015 and 2020 aimed to regulate surrogate advertisements, increase fines, and require licensing for tobacco production and distribution. However, these amendments have not been passed.
• Taxation and Affordability: India's low tobacco taxes have not kept pace with rising incomes, making tobacco products more affordable. The tax burden is 51% for cigarettes, 22% for bidis, and 64% for smokeless tobacco products, below the FCTC’s recommended 75%. Despite efforts, tax evasion and illegal trade persist.
• Lobbying and Policy Interference: Effective lobbying by the tobacco industry has led to tax exemptions and policy influence.

Since the introduction of the Insolvency and Bankruptcy Code (IBC) in 2016, creditors have successfully recovered ?3.36 trillion from defaulting corporations. This marks a significant improvement over the previous Board for Industrial and Financial Reconstruction (BIFR) regime.

Key Accomplishments

• Rescue of Distressed Companies: The IBC has facilitated the rescue of 3,171 distressed companies between 2016 and March 2024. It has also helped in the efficient shutdown of unviable businesses.
• The recovery under IBC represents around one-third of the amounts claimed by creditors and 162% of the liquidation value of the assets.
• Resolution of the Twin Balance Sheet Problem: The IBC has been instrumental in addressing the twin balance sheet problem, where banks were stressed, and firms were overleveraged due to liberal lending practices following the global financial crisis of 2008-09.
• Reduction in Non-Performing Assets (NPAs): Post-reform, the gross non-performing assets ratio of banks has decreased to a multi-year low of 3%, and the net non-performing assets ratio (excluding provisions for potential losses) has dropped to 0.7% as of December 2023.
• It has helped in tackling a major development challenge for the government—the twin balance sheet problem – when banks are stressed and firms are overleveraged, due to liberal lending practices meant to boost economic growth after the global financial crisis of 2008-09.

What is IBC?

• Insolvency and Bankruptcy Code (IBC) is India's bankruptcy law.
• The IBC consolidates the existing framework by creating a single law for insolvency and bankruptcy.
• Prime objective: to rescue corporate debtors in distress. The IBC specifies a time-bound insolvency resolution process, including any litigation, which must be completed within 330 days. The primary objective of the IBC is to rescue corporate debtors in distress swiftly.
• Previously, the process of winding up companies was regulated by the Companies Act, 1956, under court supervision, leading to undue delays.
• With the enforcement of the IBC, the winding-up procedure is now under the supervision of the National Company Law Tribunal (NCLT). This ensures prompt action at the early stage of debt default, resulting in an optimal recovery rate.
• After the reform, the gross non-performing assets ratio of banks dipped to a multi-year low of 3% and the net non-performing assets ratio (which excludes the provisions set aside for covering potential losses) to 0.7% as of December 2023.

Several member countries of the World Trade Organization (WTO) are questioning India over its 50% increase in support to farmers in 2022-23. India's allocation for public stockholding for food security has also come under scrutiny, especially with a 21% increase from the previous year.

India's Subsidies for Low-Income Farmers:

• India reported a significant increase in subsidies for "low-income or resource-poor" farmers, reaching $48.1 billion in 2022-23, a 50% rise from the previous year.
• The subsidies cover various inputs like irrigation, fertilizers, and electricity, benefiting nearly all farm holdings in India according to the Agricultural Census.
• WTO’s member countries have been seeking a cut in India’s de minimisentitlement under the WTO’s Agreement on Agriculture (AoA).

Importance of Indian Farm Subsidies:

• India's farm subsidies are vital for its marginal farmers and ensure food security for millions. The demand for a cut in subsidies by developed countries seems unjust considering their lifeline status for Indian farmers.
• Agricultural Realities in Developing Nations: Developing countries have a higher number of people engaged in agriculture, with the sector contributing significantly to their GDP. Moreover, the majority of farmers in these nations are low-income or resource-poor, necessitating government support.
• Disparity in Total Domestic Support: Developed countries offer significantly higher total domestic support to their farmers compared to developing nations like India. For instance, while the US provides $61,286 per farmer, India's support stands at just $282.
• AMS Entitlement and Discrimination: Developed countries benefit from the Aggregate Measurement of Support (AMS) entitlement, allowing them to offer higher support. In contrast, developing countries face policy constraints due to restricted entitlements, leading to unfair trade practices.
• Addressing Unfairness in Trade: India invoked the WTO peace clause after exceeding the ceiling for farm support, highlighting the challenges faced by developing nations.

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Under the influence of strong westerly winds along the Kerala coast, the State is likely to experience widespread rainfall.

Air Circulation Pattern

• The equatorial regions of Earth receive more heat from the Sun compared to other parts of the world. This results in differences in air temperature, density, and pressure, which cause air to move, creating wind.
• This movement of air is part of the general circulation of the atmosphere, which plays a crucial role in transporting heat from the equatorial regions to the poles and returning cooler air to the tropics.
• Due to Earth's rotation, winds do not travel directly from high-pressure to low-pressure areas.
• The Coriolis force influences the direction of the wind, causing it to deflect to the right in the northern hemisphere and to the left in the southern hemisphere.

• There are six major air circulation patterns, three in each hemisphere. Each one of them rules roughly 30 degrees of latitude, like wind belts around the Earth.
  • Polar Easterlies: These winds form between 90 degrees (the North and South Poles) and 60 degrees latitude. Cold air at the poles moves towards 60 degrees, where it heats up, expands, rises, and then cycles back in a counterclockwise loop.
  • Trade Winds: These winds occur between the Equator (0 degrees) and 30 degrees latitude in both hemispheres. Warm air at the Equator rises, moves towards 30 degrees, cools down, and sinks, creating a consistent wind pattern.
  • Prevailing Westerlies: These winds form between 30 degrees and 60 degrees latitude in both hemispheres. Air trapped between these latitudes forms a new convection current, moving in a clockwise direction.

The Reserve Bank of India (RBI) announced a record surplus transfer to the government for the fiscal year 2024 (FY24), amounting to Rs 2,10,874 crore. This represents a significant increase compared to the previous year's surplus transfer.

Income and Expenditure Overview

• Income: The RBI's total income saw a notable rise, driven primarily by an increase in interest income from both domestic and foreign sources.
  • Interest income includes earnings from rupee securities, liquidity operations, and foreign securities. Despite a decline in other income categories, the overall income growth remained robust.
• Expenditure: A sharp decline in provisions, which are funds set aside for contingencies, significantly reduced the RBI's overall expenditure.
  • Other expenses such as the cost of printing notes, agency charges, employee costs, and miscellaneous expenses also saw reductions.

Balance Sheet Highlights

• Asset Growth: The RBI's balance sheet grew due to increases in foreign investments, gold reserves, and loans and advances.
• Increase in Gold Reserves: The RBI's gold reserves grew, with significant additions during the year. The gold is held as backing for notes issued and as an asset of the Banking Department (BD).
• Available Realised Equity: The RBI's realised equity, which includes capital, reserve funds, the Contingency Fund, and the Asset Development Fund, increased as a percentage of the balance sheet, indicating a stronger financial position.

In a major milestone for India's private space sector, Agnikul Cosmos has successfully launched its SOrTeD mission. The mission featured a single-stage launch vehicle demonstration powered by the world's first single-piece 3D-printed semi-cryogenic engine, Agnilet.

Key highlights of the mission:

• Agnibaan SOrTeD (SubOrbital Technological Demonstrator) is a single-stage rocket fueled by a semi-cryogenic engine.
• Launch Site: The SOrTeD mission took off from ALP-01, India's first private launchpad, located at the Satish Dhawan Space Centre in Sriharikota.
• The Agnibaan rocket is capable of carrying up to 300 kg payload to a 700 km high orbit.
• Mission Maneuvers: The mission included precise maneuvers such as a pitch-over maneuver and wind biasing before splashing down in the Bay of Bengal.
• The data collected from the SOrTeD mission will be instrumental in fine-tuning the development of the Agnibaan launch vehicle, which is expected to be highly customizable and capable of carrying a 300kg payload to a 700km orbit.

A Falcon 9 rocket by SpaceX recently launched an Earth science mission jointly led by the European Space Agency (ESA) and Japan. This launch marks ESA's temporary collaboration with SpaceX for space access.

Mission Details:

• Named EarthCARE, the mission is valued at 800 million euros ($870 million) and focuses on studying clouds and aerosols in the atmosphere.
• The spacecraft is equipped with four instruments, including a cloud profiling radar provided by the Japanese space agency JAXA, costing 8.3 billion yen ($53 million).
• Mission Objectives:
  • EarthCARE, weighing 2,200 kilograms, orbits at an altitude of 393 kilometers in a sun-synchronous orbit.
  • Its primary goal is to gather data on clouds, aerosols, reflected sunlight, and radiated heat in the atmosphere.
  • This data will contribute to atmospheric science, aiding in climate and weather modeling.
• While other spacecraft, like NASA's PACE spacecraft launched in February, also conduct similar measurements, EarthCARE's mission enhances the global understanding of Earth's atmosphere and climate dynamics.

Inflammatory Bowel Disease (IBD) is making headlines due to increasing awareness and diagnosis among children in India.

What is IBD?

• IBD is a chronic condition where the body's immune system mistakenly attacks the cells of the digestive tract, causing inflammation and ulcers.
• Symptoms: This chronic autoimmune condition affects the digestive tract, causing symptoms like fever, abdominal pain, diarrhea (sometimes bloody), and weight loss.
• Types: There are two main types of IBD:
  • Ulcerative Colitis: Affects only the large intestine (colon).
  • Crohn's Disease: Can affect any part of the digestive tract, from the mouth to the anus.
• Causes of IBD: The exact cause is still unknown, but several factors contribute to its development:
  • Immune System Dysregulation: Children with IBD often have a weak or overactive immune system that responds inappropriately to environmental triggers like viruses or bacteria.
  • Genetics: There may be a genetic predisposition, as IBD sometimes runs in families.
  • Gut Microbiota: The millions of microorganisms in the human gut play a crucial role. Changes in the gut microbiota, influenced by frequent antibiotic use or westernized diets, are linked to IBD.
  • Environmental Factors: Lifestyle changes and dietary habits can also trigger or exacerbate IBD.

Rivers and streams in Alaska are undergoing a noticeable change in color, shifting from a clear blue to a rusty orange hue. This transformation has occurred over the past five to 10 years, raising concerns about the health of these water bodies.

Causes of Discoloration:

• Thawing permafrost is releasing toxic metals such as iron, zinc, copper, nickel, and lead into the waterways.
• These metals, harmful to river and stream ecosystems, were previously locked away underground for thousands of years.
• Impact of Thawing Permafrost:
  • Arctic soils, including permafrost, naturally contain organic carbon, nutrients, and metals like mercury.
  • As permafrost melts due to rising temperatures, these minerals and metals are exposed and leach into nearby water sources.
• Climate Change Factor: The Arctic is warming at a rate four times faster than the global average, exacerbating permafrost thawing and its associated impacts on water quality.
• Similar Case in Colorado: Colorado's Rocky Mountains are also experiencing a similar phenomenon, attributed to a warming climate and other environmental factors.

The increasing threat of wet-bulb heat, a combination of high temperature and humidity, is becoming a significant concern due to climate change and global warming.

Understanding Wet-Bulb Heat:

• Record-Breaking Temperatures: A weather station in Delhi reported a maximum temperature of 52.9° Celsius, the highest ever for India. This extreme heat, along with increasing humidity, is creating oven-like conditions across large parts of the country.
• Increasing Humidity: An analysis of data from the India Meteorological Department reveals that the hot season has gradually become muggier. The average relative humidity in summer months in Delhi has risen from 52.5% in the first decade of the millennium to above 60% in recent years.
• Concept of Wet-Bulb Heat: Wet-bulb heat refers to readings of a thermometer whose bulb is covered with a cloth soaked in water. As the ambient air becomes more humid, the cooling effect of evaporation weakens, leading to higher wet-bulb temperatures.

Implications of Rising Wet-Bulb Heat:

• Health Risks: Exposure to extreme humid heat can induce stress and even prove fatal. Global human tolerance studies suggest that spending five hours or more outdoors in wet-bulb heat of above 35° Celsius could be lethal.
• Vulnerable Population: On current trends, the bulk of our population may be vulnerable to wet-bulb heat by mid-century. Millions of outdoor workers in India face severe health risks due to wet-bulb heat.
• Energy Demand: The energy needed to keep Indians safe and cool would be enormous, potentially pushing us into a vicious cycle if we don’t plan properly. Achieving carbon neutrality by 2070 will not be easy, even with the adoption of clean-tech options for electricity.

Urgency of Preparedness and Policy Action:

• Awareness and Education: Understanding and communicating the concept of wet-bulb heat is essential for preparing the public and policymakers for the increasing threat posed by heat and humidity.
• Policy Interventions: Immediate and effective policies are needed to protect vulnerable populations, including the implementation of heat action plans, provision of cooling centers, and promoting urban planning that reduces heat retention.
• Long-term Strategies: Comprehensive planning and investment in sustainable infrastructure are vital to mitigate the effects of climate change, ensuring that India can adapt to the worsening conditions and protect its citizens from future heat-related fatalities.

UPSC Mains Questions:

Q. Discuss the concept of wet-bulb heat and its implications for public health and workforce productivity in India.

It is absolute necessity for India’s new government to adopt a visionary approach to navigate and leverage the dual technological transformations—energy transition and digital transformation—currently reshaping the global economy.

Understanding the Technological Transformations:

• Energy Transition: The fossil-fuel-based industrial economy is giving way to renewable energy sources like solar power, wind power, and green hydrogen. This transition is being fast-tracked by massive private investment and plummeting costs of renewable energy capacity and products.
• Digital Transformation: The advent of artificial intelligence (AI) and Generative AI (GenAI) is changing the way we live and work. These technologies are replicating and massively multiplying the mental capacity of human beings, leading to a revolution in various fields.
• Global Competition: There is intense global competition, especially between the US and China, in leading these transformations. National governments are playing a key role in supporting and subsidizing private companies in this race.

Implications of the Technological Transformations:

• Impact on Global Economy: These simultaneous transformations are expected to usher in a massive investment boom and decades of high growth, changing the world in which we live.
• Existential Threats and Opportunities: While some experts fear that AI poses an existential threat to humankind, others argue that AI can be deployed to immensely enhance human knowledge and creativity across many fields.
• India’s Position: In India, the AI experience has been quite positive so far, with 92% of knowledge workers using AI. However, much of this has to do with the application of AI and GenAI algorithms, rather than creating them.

Strategic Implications for India:

• Leveraging Technological Transformations: The new government must prioritize leveraging both energy and digital transformations to propel India towards becoming the third largest economy by the end of the decade and achieving developed nation status by mid-century.
• Government Support and Policy Framework: Effective policies and substantial government support are crucial for fostering innovation, attracting investments, and ensuring sustainable economic growth amidst these technological disruptions.
• Global Economic Positioning: Preparing for and integrating into the emerging global economy requires strategic planning, investment in infrastructure, and nurturing of a skilled workforce capable of driving and sustaining technological advancements.

UPSC Mains Questions:

Q. Discuss the implications of the energy transition and digital transformation for India’s economy. How can India leverage these transformations to become the third largest economy by the end of this decade?

The transparent and efficient carbon markets have a critical role in combating climate change. There is an urgent need for private sector involvement and market reforms to address climate issues effectively.

Understanding the Carbon Credit Market:

• Role of Carbon Credits: Carbon credits, bought and sold in a voluntary carbon market, offer companies and investors ways to reduce greenhouse-gas emissions. They help finance new clean-energy installations, drive capital to high-reward projects, fund reforestation and ecological preservation, and finance the early retirement of coal plants.
• Potential Demand: There is enormous potential demand for carbon credits. Many business leaders recognize that tackling climate change is in their companies’ self-interest and are setting ambitious decarbonization goals.
• Market Failure: The current market for credits is opaque and riddled with inefficiency. Buyers can’t be sure which credits are credible, projects often don’t deliver what they promise, and sellers can’t be held accountable. This opacity breeds inefficacy and corruption.

Implications of a Transparent Carbon Credit Market:

• Addressing ‘Scope 3’ Emissions: Companies have far less control over their ‘Scope 3’ emissions, those generated by suppliers and customers. Allowing firms to buy credits against these emissions could dramatically increase demand for them.
• Greenwashing Concerns: Lack of transparency facilitates greenwashing, where companies exaggerate their climate efforts, undermining public trust in private sector initiatives.
• Role of Transparency: Transparency works. By creating real-time pricing and making it available to buyers and sellers, we can level the playing field and allow more capital to flow to productive assets.

Addressing the Challenges and Leveraging the Opportunities:

• US Policy Statement: The US has released a policy statement and set of principles for building more transparent, responsible, and effective voluntary carbon markets. This is an important step that builds on work led by the Integrity Council for the Voluntary Carbon Market and the Voluntary Carbon Markets Integrity Initiative.
• Global Cooperation: Encouraging other nations to join should be a priority for the Biden administration, including at November’s G20 summit in Rio de Janeiro.
• Impact on Climate Crisis: Fixing the carbon-credit market won’t solve the climate crisis on its own, but it will go a long way towards enlisting the market in the fight.

UPSC Mains Questions:

Q. Discuss the role of carbon credits in tackling climate change. Evaluate the current state of the carbon credit market and the challenges it faces.