GS Analyst: Daily Current Affairs

China is taking interest in constructing a pan-Asian railway network to bolster regional connectivity and economic integration across Southeast Asia. This initiative forms a crucial part of China's broader Belt and Road Initiative (BRI). Malaysia’s ECRL project is sometimes linked to a China-led “pan-Asian” railway network that would connect the southern Chinese city and transportation hub of Kunming with Singapore at the tip of the Malaysian peninsula by lines running across multiple Southeast Asian countries.

What is East Coast Rail Link (ECRL)?

• The ECRL is a significant railway project in Malaysia, spanning 665 kilometers from Kota Bharu to Port Klang.
• Originally started in 2017, the project faced funding issues and political obstacles before resuming in 2020.
• It is expected to enhance economic ties and infrastructure development between China and Malaysia.

China’s Pan-Asian Rail Network Plans

• China envisions a comprehensive pan-Asian rail network comprising three main lines:
  • Western line: Kunming through Myanmar and Thailand.
  • Central line: Laos and Thailand.
  • Eastern line: Vietnam, Cambodia, and Thailand. These lines aim to facilitate trade and travel across the region, with potential extensions to connect to Singapore, a key global trade hub.
• Current Status and Challenges: While progress has been made, challenges such as varying railway track widths and economic viability have slowed implementation:
  • Laos-China section operational since 2021; other sections facing delays.
  • High costs and logistical complexities in Thailand and other countries.
  • Questions regarding the economic benefits and demand for rail transport versus maritime shipping.

China's Regional Strategy and BRI

• China's involvement in Southeast Asia through infrastructure investments under the BRI aims to strengthen economic ties and geopolitical influence:
  • Significant trade volumes between China and ASEAN underscore economic interdependence.
  • Despite concerns over debt and terms of financing, China aims to build goodwill through infrastructure development.
  • Geopolitical tensions in the South China Sea influence regional dynamics, with China seeking to balance economic cooperation and territorial disputes.

Efforts towards financial inclusion have highlighted a critical barrier: low labor force participation among women. In the fiscal year 2022, female participation stood at 32.8%, significantly lower than the 77% among men. Despite women leading nearly a fifth of Micro, Small & Medium Enterprises (MSMEs), they receive only 7% of outstanding loans in this sector.

This discrepancy underscores structural challenges such as limited capital, restrictive societal norms (like inheritance laws), and unequal access to education and training.

Current Challenges in Women's Economic Participation

• Low Labor Force Participation Rates: Disparity in female (32.8%) vs. male (77%) participation.
• Credit Access Discrepancies: Only 7% of MSME loans go to women-led businesses despite their significant presence (nearly a fifth).
• Gender Inequality: As per World Economic Forum's Gender Gap Report 2022, India ranked 135 out of 146 countries and was behind smaller neighbours, with gender inequalities exceeding five percent.
• Gender Pay gap: The Oxfam India Discrimination Report 2022 highlighted the gender pay gap in India, with women facing bias in recruitment and pay across the country.

Barriers to Financial Inclusion

• Structural Challenges: Limited capital, societal norms (e.g., inheritance restrictions), unpaid labour and vulnerable employment and unequal access to education and training.
• Perceptions and Biases: Stereotyping of women borrowers as higher risks, resulting in higher interest rates, stringent collateral requirements, and loan rejections.
• Behavioral Factors: Risk aversion, lower confidence in negotiating loan terms, and fear of rejection.

Pathways to Enhance Women's Participation

• Addressing Systemic Biases: Promoting fair assessment and treatment of women borrowers.
• Empowering Through Education: Enhancing financial literacy and skills training.
• Ensuring Access to Capital: Facilitating easier access to credit with reasonable terms.
• Supporting Women-Led MSMEs: Providing tailored support and incentives to foster growth and sustainability.

The increased involvement of women in entrepreneurship has the potential to boost India's GDP by $0.7 trillion by 2025.

Data from the Reserve Bank of India (RBI) showed that India’s current account registered a surplus during the fourth quarter (Jan-Mar) of the 2023-24 financial year. This was the first time in 11 quarters that India had witnessed a surplus.

What is Balance of Payments (BoP)?

• The Balance of Payments (BoP) is like a financial record that tracks all the money flowing into and out of a country from its international transactions.
• It helps understand how much money India gains or lose from its dealings with other countries.
• Components of Balance of Payments:
• Current Account:
  • Trade of Goods: This accounts for physical goods (like cars, wheat, gadgets) that India buys from or sells to other countries. If India imports more goods than it exports, it results in a trade deficit.
  • Trade of Services (Invisibles): Includes services like banking, IT, tourism, and money transfers from Indians working abroad. In Q4 of 2023-24, India saw a surplus on the current account mainly due to a surplus in invisible services despite a trade deficit.
• Capital Account:
  • Records investments rather than day-to-day transactions. It includes Foreign Direct Investment (FDI), Foreign Institutional Investments (FII), banking capital, currency and deposits, trade credits, special drawing rights.
• Foreign Exchange Reserves:
  • The BoP always balances through changes in foreign exchange reserves. When India receives more money from exports, investments, or loans than it spends, the RBI adds these dollars to its foreign exchange reserves.

Positives and negatives of a Current Account Surplus:

In Lower Assam, the Beki River, a tributary of the Brahmaputra, has triggered a crisis by altering its course, displacing thousands and wreaking havoc on state infrastructure. The roots of the issue date back to changes initiated in 2004 when the Beki River started carrying a significant silt load from both itself and the Manas River.

Causes of Course Alteration

• The Integrated Flood and Erosion Management Plan of 2022, supported by the World Bank, highlighted the increased flood hazard and severe erosion along the Beki River's path.
• Periodic releases of water from the Kurichu Dam in Bhutan further escalated floods and erosion downstream, altering the Beki's natural course significantly.
• Lack of proactive bank protection measures and failures in coordination between the water resources department, district administration, and public works department exacerbated the crisis.

Antarctica, a vast expanse of white, holds a surprising secret: its eastern and western regions froze over at vastly different times. This disparity may hold clues to why West Antarctica is more vulnerable to today's warming trends.

Key-highlights

• Timeline of Freezing: Recent research reveals that Eastern Antarctica locked in its permanent ice sheets about 34 million years ago. However, it took another 7 million years for Western Antarctica to experience the same ice formation. This delay is significant as it correlates with a pivotal shift in Earth's climate from a greenhouse to an icehouse state.
• Impact of Climate Shift: The transition to an icehouse climate initiated the growth of massive ice sheets in Antarctica, reshaping global climate patterns ever since. During the initial major phase of Antarctic glaciation around 34 million years ago, there is no evidence of ice in what is now West Antarctica.
• Climate Conditions: At that time, West Antarctica likely hosted dense broadleaf forests due to a cool-temperate climate that deterred ice formation. In contrast, East Antarctica, particularly in the Northern Victoria Land, had conditions conducive to permanent ice formation, supported by moist air masses from the Transantarctic Mountains.
• Challenges in West Antarctica: The advance of ice towards West Antarctica's Amundsen Sea sector was hindered by milder air and ocean temperatures. However, ice did begin its spread towards the Ross Sea sector earlier, facilitated by favorable climatic conditions and geographical features.
• Current Vulnerabilities: Today, many parts of West Antarctica are below sea level, making them inherently more susceptible to warming-induced ice loss. Even slight increases in temperature can accelerate the melting of the West Antarctic ice sheet, a phenomenon already observed.

Researchers from the Zoological Survey of India (ZSI) have identified a new species of horned frog in Northeast India, previously mistaken for another species found in Vietnam and China.

Key-facts of the Species:

• Initially misidentified as Xenophrys maosonensis, the newly described frog is now recognized as Xenophrys apatani.
• The species is named after the Apatani tribe of Arunachal Pradesh, where it was first reported.
• This leaf-litter dwelling frog, distinguished by small horns and dark brown coloration, inhabits tea leaf environments.
• There is a significant genetic difference of 4.4% to 5.5% from its Vietnamese counterpart, prompting the species' reclassification.
• Xenophrys apatani contributes to India's herpetofaunal diversity, particularly in the Eastern Himalayas and Indo-Burma biodiversity hotspots.

The Indian Space Research Organisation (ISRO) has identified two astronauts from its Gaganyaan program for the upcoming Axiom-4 mission to the International Space Station (ISS), scheduled tentatively for October 2024. This mission is a collaboration between NASA and the private US company Axiom Space.

About Axiom-4 Mission

• The Axiom-4 mission is a private spaceflight to the International Space Station.
• It is operated by Axiom Space and used a SpaceX Crew Dragon spacecraft.
• The mission marks NASA's fourth private astronaut mission, organized in partnership with Axiom Space.
• The mission is part of NASA's broader strategy to transition low Earth orbit activities from government-led initiatives to a marketplace where NASA is one of many customers.
• It involves transporting astronauts to the ISS aboard SpaceX's Dragon spacecraft for a fourteen-day mission duration.
• Significance of the mission:
  • It will help in increasing global access to space
  • It will normalise living and working in microgravity.                                                    

A recent outbreak of African swine fever (ASF) has been reported from a farm in Kerala's Thrissur district.

Key Facts about African Swine Fever (ASF)

• ASF is a viral disease that affects pigs and wild boar, causing high fatality rates.
• It is not harmful to humans but severely disrupts socioeconomic systems in affected regions.
• Transmission:
  • Direct contact with infected animals
  • Ingestion of contaminated animal products
  • Contact with contaminated equipment or clothing
  • Bites from infectious ticks
• Symptoms: Fever, abortions, bleeding, sudden deaths, depression, loss of appetite, skin hemorrhages, vomiting, and diarrhea.
• Control and Treatment: There are currently no vaccines or cures for ASF. Control measures involve strict biosecurity protocols, movement restrictions, and culling of infected animals.

Prime Minister Narendra Modi's absence from the 24th SCO summit and his upcoming visit to Russia highlight India's independent foreign policy and strategic balancing in regional organizations.

India's Approach to SCO:

• Guiding Principles: India's SCO agenda is based on 'Vasudhaiva Kutumbakam' (world is one family) and SECURE (Security, Economic development, Connectivity, Unity, Respect for sovereignty, and Environmental protection).
• Balancing Act: India maintains a steady balance between the US and Russia, continuing close relations with Moscow without compromising its position on global conflicts.
• Independent Stance: PM's absence from the SCO summit is not due to US influence, but reflects India's own strategic considerations.

SCO Dynamics and India's Role:

• Membership Evolution: India and Pakistan joined SCO in 2017, with Russia advocating for India's membership while China insisted on Pakistan's inclusion.
• Counter-balancing China: Russia sees India as a potential counterweight to China's growing influence in the SCO and Central Asia.
• Economic Fulcrum: India is viewed as a strong economic fulcrum for extending the Eurasian forum beyond Central Asia to South Asia.

India's Strategic Considerations:

• Central Asian Focus: India aims to revive cultural and economic ties with Central Asia, using it as a bridge to West Asia and Europe.
• Indo-Pacific Strategy: India's role in the Indo-Pacific and Indo-Pacific Economic Framework (IPEF) makes it an attractive partner for Central Asian economies.
• Russia-India Relations: PM Modi's upcoming visit to Russia is expected to strengthen bilateral ties, reaffirming India's independent foreign policy.

UPSC Mains Questions:

Q. Analyze India's strategic approach to the Shanghai Cooperation Organisation (SCO). How does it reflect India's broader foreign policy objectives in the region?

A recent Madras High Court order allowing the practice of angapradakshinam has reignited debates on judicial interpretation of religious practices, the essential religious doctrine test, and the balance between religious freedom and constitutional values.

Judicial Approach to Religious Practices:

• Inconsistent Interpretation: Courts have been inconsistent in determining essential religious practices, moving away from examining religious doctrines to applying their own rationality.
• Essential Religious Doctrine Test: Introduced in Sri Shirur Mutt case (1954), it limits religious freedom protection to practices deemed essential and integral to a religion.
• Varied Criteria: Courts have used different criteria such as religious texts, empirical evidence of practice, and historical existence to determine essentiality of practices.

Constitutional Provisions and Judicial Interpretation:

• Freedom of Religion: Article 25 guarantees freedom to profess, practice, and propagate religion, subject to public order, morality, and health.
• Subordination to Other Rights: The Constitution subordinates religious freedom to other fundamental rights and allows state intervention for social reforms.
• Privacy and Dignity: Recent judgments have linked religious practices to right to privacy (Article 21) and human dignity.

Challenges in Judicial Determination of Religious Practices:

• Theological Complexity: Judges often have to interpret complex theological issues without specialized knowledge.
• Balancing Rights: Courts struggle to balance religious freedom with other constitutional values and public welfare.
• Evolving Practices: Difficulty in accommodating evolving religious practices while adhering to the "essential practices" doctrine.

UPSC Mains Questions:

Q. Critically examine the 'essential religious practices' doctrine evolved by the Indian judiciary. How has it impacted the interpretation of religious freedom in India?

The upcoming Union Budget, expected in late July, is anticipated to set the tone for Modi 3.0 government's economic policies, with a focus on job creation, skill development, and innovation.

Key Budget Priorities:

• Employment and Skill Development: Renaming of Cabinet Committee to include 'Skill' and 'Livelihood' indicates a broader approach to job creation and skill enhancement.
• Housing and Infrastructure: Cabinet decision to provide assistance for 30 million additional houses under PMAY signals focus on welfare schemes and potential job creation.
• Research and Innovation: Previous allocation of Rs 1 trillion corpus for technology research indicates growing emphasis on R&D and innovation.

Challenges and Opportunities:

• R&D Expenditure: India's R&D spend at less than 1% of GDP lags behind countries like US, Germany, China, and South Korea.
• Private Sector Involvement: Private sector's gross domestic expenditure on R&D (GERD) in India is below 40%, compared to 65-70% in innovation-focused countries.
• Industry-Academia Collaboration: Need for enhanced partnerships between industry and academic institutions, both domestic and international, especially in sectors like semiconductors and electronics.

Proposed Economic Reforms:

• Tax Regime Overhaul: Suggestions include cleaning up direct tax regime across asset classes to encourage financial savings and broaden capital markets.
• Trade Facilitation: Proposals for reducing customs tariffs, encouraging participation in global supply chains, and actively signing free-trade agreements.
• Agricultural Productivity: Recommendation to set up a "productivity commission" for agriculture and allied sectors to boost farm incomes.

UPSC Mains Questions:

Q. "India's low R&D expenditure is a major hurdle in becoming a global innovation hub." Discuss this statement in light of the government's recent budget allocations and policies for research and development.