GS Analyst: Daily Current Affairs

India is engaged in a critical discussion regarding the constitutional validity of reservation, particularly concerning religion-based quotas.

1: Dimension- Interpretation of Equality: 

• The Constitution emphasizes equity over mere equality, allowing for special measures to address historical inequalities to address inequalities and promote social justice.
• Article 16(4): Enables the state to provide reservation for backward classes not adequately represented in government services.
• First Constitutional Amendment: Introduced Article 15(4) allowing special provisions for socially and educationally backward classes, SCs, and STs.
• Article 15: Prohibits discrimination based on religion, caste, sex, race, or place of birth.
  • Reservation is seen as an extension of equality, not an exception, as per Supreme Court's interpretation in State of Kerala vs N M Thomas (1975).
• Interpretation of Articles 15 and 16: Crucial word is 'only,' implying that any group considered weaker under Article 46 or as a backward class is entitled to special provisions for advancement.
• The judiciary interprets equality dynamically, allowing for special provisions like reservation to achieve substantive equality.
• Reservation is seen as an extension of equality, aiming to uplift marginalized groups.

2: Dimension- Muslim Reservation: 

• Reservation for Muslims has been implemented within the OBC quota without reducing quotas for SCs, STs, or OBCs.
• Muslim castes have been included in OBC lists based on social backwardness criteria.
• Some Muslim castes were granted reservation not solely because of their religion, but because they were classified as backward classes.
• This reservation didn't diminish quotas for SCs, STs, or OBCs; instead, it established a sub-quota within the OBC category.
• Inclusion by Mandal Commission: Mandal Commission, like various states, added several Muslim castes to the OBC list.
• Panel Recommendations: Committees like the Sachar and Misra panels highlighted the backwardness of Muslims, suggesting reservation measures.
• Courts have upheld the constitutionality of Muslim reservation, emphasizing social backwardness as a criterion.
  • Supreme Court ruling in Indra Sawhney (1992) emphasized that any socially backward group, irrespective of identity markers, qualifies for backward class status if meeting predefined criteria.
  • The Supreme Court has held that equality is a dynamic concept with many aspects and dimensions, and it cannot be “cribbed, cabined and confined” within traditional and doctrinaire limits (E P Royappa vs State Of Tamil Nadu, 1973).
• State Examples:
  • Kerala and Karnataka have historically provided reservation for Muslims within the OBC category.
  • Tamil Nadu introduced a sub-category for backward Muslims within the OBC quota.
  • Andhra Pradesh and Telangana proposed reservation for OBC Muslims, facing legal challenges due to lack of proper identification of backwardness.

In the Budget of 2023-24, a new provision was introduced in the Income-Tax Act to ensure timely payments to micro, small, and medium enterprises (MSMEs). However, this provision has led to unintended consequences, with large companies opting to cancel orders with registered MSMEs and instead placing them with unregistered ones. This has raised concerns among MSME associations and prompted the Union MSME Ministry to seek solutions from industry stakeholders.

1: Dimension- Impact on MSMEs: 

The new provision, aimed at securing timely payments for MSMEs, has created challenges for both MSMEs and large corporations.

• Order cancellation: MSMEs have reported cancellations of orders and pressure to cancel their MSME registration to compete with unregistered entities.
• Financial losses and competition: The scheme, though well-intentioned, has resulted in negative outcomes, as MSMEs face financial losses and competition from unregistered counterparts.
• De-registration: Many smaller entities are choosing to deregister themselves to avoid losing business to unregistered competitors. This has further exacerbated the challenges faced by MSMEs, forcing them to adapt to survive in the market.
  • As per MSME Ministry’s data, 28 crore MSMEs registered during July 1, 2020 to January 30, 2024 on Udyam portal, while 1.28 crore micro enterprises registered on the Udyam Assist Platform during January 11, 2023 to January 30, 2024.
  • As on January 30 2024, around 35,396 MSMEs cancelled their Udyam registration due to shut down of business during July 1, 2020 to January 30, 2024.
• Tax liabilities: The payment timelines mandated by the new provision are unrealistic. The disallowance of expenditure due to delayed payments has increased tax liabilities for large corporations, impacting their dealings with MSMEs.

2: Dimension- The right approach to solve the issue 

• The government should reconsider the timelines and extending them to at least the time of filing returns.
• While some industry associations advocate for no course correction from the government, others suggest options like mandatory bill discounting and extension of payment timelines to address the challenges faced by MSMEs.
• Overall, the implementation of the new tax provision has inadvertently created challenges for MSMEs, necessitating stakeholder engagement and potential policy adjustments to ensure the sustainability of MSMEs in the market.

Carbon farming, which integrates regenerative agricultural practices with carbon sequestration techniques, has gained attention due to its potential to address climate change while enhancing soil health and agricultural productivity.

1: Dimension- Significance of Carbon Farming

• Conservation Agriculture: Techniques like zero tillage, crop rotation, and cover cropping enhance soil health and minimize disturbance.
• Integrated Nutrient Management: Promotes soil fertility and reduces emissions using organic fertilizers and compost.
• Agro-ecology: Encourages crop diversification and intercropping for ecosystem resilience.
• Livestock Management: Strategies like rotational grazing and waste management reduce methane emissions and increase carbon storage.

2: Dimension- Challenges to Carbon Farming: 

• Geographical Variation: Effectiveness depends on factors like soil type, water availability, and biodiversity.
• Water Scarcity: Hot and dry regions face challenges due to limited water resources, hindering plant growth and carbon sequestration.
• Financial Assistance: Small-scale farmers may lack resources to invest in sustainable practices, requiring financial support for adoption.
• Limited Awareness: Awareness about carbon farming needs to be increased among farmers and policymakers.
• Inadequate Policy Support and financial assistance: Policies need to incentivize and support carbon farming adoption and financial assistance are limited.
• Technological Barriers: Access to appropriate technologies is essential for effective implementation.

Gold prices have been reaching record highs, with spot gold rising from USD 2000 per ounce a year ago to USD 2294 per ounce now, a 14% increase.

• Causes of Surge: Factors like trade tensions, financial conflicts among global powers, high interest rates in advanced economies, and ongoing wars, particularly in the Middle East, are driving this surge in gold prices. 
  
  

1: Dimension- Gold as a Safe Haven Investment 

• Historical Resilience: Gold has historically been prized for its scarcity and intrinsic value, making it resilient during economic instability, geopolitical crises, and market downturns.
• Investor Preference: Investors turn to gold as a "safe haven" asset during uncertain times due to its stability and tendency to maintain or appreciate in value over time.
• Equity Market Influence: Record equity market valuations indirectly drive demand for gold as a portfolio diversifier, with institutional investors, retail investors, and central banks globally increasing their gold purchases.
• Interest Rate Dynamics: Institutional investors anticipate potential interest rate cuts by the U.S. Federal Reserve, leading to increased gold acquisitions.
• Rationale for Gold Holdings: Gold serves as a stable asset during financial crises, offering stability during currency volatility and market turbulence.

2: Dimension- Global Trends in Gold Acquisition 

• Diversification Strategy (reduced reliance on dollars): Central banks worldwide are accumulating significant quantities of gold to diversify their foreign exchange reserves, reducing reliance on the U.S. dollar.
• China's Strategy: China has been on a continuous gold buying spree to diversify its reserves away from the dollar and hedge against currency depreciation.
• India's Resurgence: India has seen an increase in gold purchases, with the Reserve Bank of India (RBI) adding significant amounts to its reserves in recent years.
• Overall Gold Reserves: The United States leads in gold reserves, followed by Germany, Italy, France, and the Russian Federation. India ranks ninth in terms of gold reserves held by a country.
  • Overall, the RBI currently holds 822 tonnes of gold, which accounts for 8.98% of the entire forex reserves, as per the World Gold Council.

Mahaprabhu Vallabhacharya’s birth anniversary is observed across the nation on Krishna Paksha Ekadashi of the Vaishakha month of the Hindu calendar as Vallabhacharya Jayanti (May 4, 2024). 2024 marks the 545th birth anniversary of Vallabhacharya. 

About 

• Shripad Vallabhacharya was born in the year 1479 AD in Varanasi to a Telugu Brahmin family.
• He was the founder of the Indian Pushti sect and a well-known scholar.
• He had a strong devotion to Lord Krishna.
• He is regarded as one of the founders of the Indian Bhakti Movement as well.
• He is one of the five principal Acharyas in Hinduism. The remaining four being
  • Shankaracharya (788 AD-820AD)
  • Shri Ramanujacharya (1077 – 1157)
  • Shri Madhavacharya (1238-1317)
  • Shri Nimbarkacharya

Nepal announced the printing of a new Nepalese Rupee 100 currency note featuring a map showing disputed territories: Lipulekh, Limpiyadhura, and Kalapani. India has objected to this depiction.

About 

• Border Length: Nepal shares over 1,850 km of border with five Indian states: Uttarakhand, Uttar Pradesh, West Bengal, Bihar, and Sikkim.
• Kalapani: Kalapani is situated on the easternmost point of the Pithoragarh district in
  • Northern boundary are shared by the Tibet Autonomous Region of China
  • Eastern and southern borders are shared by Nepal.
• The area is situated between the trijunctions of Lipulekh, Limpiyadhura, and Kalapani, which connects China (Tibet) with Nepal-India.
• It is situated on the banks of the Kali River at an elevation of 3600 meters.
• The Kalapani regions are located along the eastern boundary between Nepal's Sudurpashchim Pradesh and the Indian state of Uttarakhand.
• Although Nepal claims the area for historical and geographical grounds, India currently controls it.
• Lipulekh Pass: Situated on the border between India's Uttarakhand and China's Tibetan autonomous region. Lipulekh pass has been used since ancient times by traders, pilgrims, and travelers between India and China, including those going to Kailas and Manasarovar.
• Limpiyadhura: This is where the territories of India, Nepal, and China meet.

Magnetic Resonance Imaging (MRI) has revolutionized medical imaging since its development in the early 1970s and has become indispensable in modern healthcare.

About MRI

• Magnetic Resonance Imaging (MRI) is a non-invasive diagnostic tool used to visualize soft tissues within the body.
• Applications: MRI is crucial for diagnosing conditions such as cancer, neurological disorders, and cardiovascular diseases.
• Functional MRI (fMRI): This variant of MRI helps track brain activity by monitoring changes in blood flow.
• Limitations of MRI: MRI scans cannot be conducted on individuals with certain metallic implants or objects due to the strong magnetic fields involved.
• Working Principle of MRI:
  • Hydrogen Atoms and Magnetic Fields: MRI relies on the behavior of hydrogen atoms in the body's tissues when exposed to magnetic fields.
  • Components of an MRI Machine: An MRI machine consists of a powerful magnet, a radiofrequency emitter, and a detector.
  • Image Reconstruction: The emitted radiofrequency pulse excites hydrogen atoms, which then emit signals detected by the machine to create images.

Boeing's Starliner spacecraft, set to launch from the Kennedy Space Center, aims to ferry NASA astronauts to the International Space Station (ISS), competing with SpaceX in NASA crew transport.

The inaugural crewed test flight is set to carry Navy aviators Commander Barry “Butch” Wilmore and Pilot Sunita “Suni” Williams (Indian-origin astronaut Sunita Williams) to the ISS.

What is Boeing's Starliner? 

• Starliner, also known as CST-100, is a crew capsule designed for space travel, comprising a crew module and a service module.
• Features:
  • The crew module can carry up to seven astronauts but will be modified for four along with cargo for ISS missions.
  • It's partially reusable, with the crew module capable of 10 reuses with a six-month turnaround.
  • The spacecraft is equipped with a pusher abort system for crew safety during launch and ascent.
  • It boasts software-driven operations and wireless internet connectivity for crew communication, entertainment, and docking with the ISS.

• The Mission Objective:
  • Starliner's first crewed test flight aims to assess its performance in space with astronauts aboard.
  • Docking with the ISS for approximately 10 days allows testing of manual flight controls, life-support systems, cargo transfer, and new spacesuits.

Russia’s Defence Ministry announced that it would be holding drills involving tactical nuclear weapons.

About Tactical Weapons 

• Tactical nuclear weapons, intended for use against troops on the battlefield, are less potent and can have a yield as little as approximately 1 kiloton, in contrast to nuclear-tipped intercontinental ballistic missiles, which are capable of destroying entire cities.
• During World War II, the U.S. bomb dropped on Hiroshima was 15 kilotons.
• These nuclear weapons for use in combat, such as artillery ammunition, aerial bombs, and warheads for short-range missiles, can be quite small. They can be discreetly taken on a vehicle or airplane due to their modest size.
• A range of missiles, torpedoes, and gravity bombs from land, air, or naval forces can deliver these weapons. They could even be driven into a location and set off by itself.
• Tactical weapons have never been restricted by any arms control agreements between Moscow and Washington, unlike strategic weapons, which have been the subject of such accords; Russia hasn't disclosed their quantity or any other relevant information.

Flying Wedge Defence and Aerospace Technologies presented the Flying Wedge Defence 200B (FWD-200B), an indigenous military grade bomber unmanned aerial vehicle (UAV).

About FWD-200B

• FWD-200B, India’s first indigenous bomber unmanned aircraft (UAV),is built with state-of-the-art technology and manufactured in India
• Cost: Rs 25 crores. (US Predator costs 250 crore).
• Payload capacity: 100 kgs
• The bomber plane is categorized as a medium-altitude, long-endurance (MALE) unmanned combat aerial vehicle.
• For precise airstrikes, the Unmanned Aerial System (UAS) is equipped with missile-like weaponry and optical surveillance payloads.
• With a maximum takeoff weight of 498 kg, the FWD-200B has a 200 kilometer ground control station (GCS) range.
• Speed: It can travel at a maximum speed of 200 kts, or 370 kmph, for 12 to 20 hours.

In a proactive move to address water scarcity and replenish groundwater levels, the Bangalore Water Supply and Sewerage Board (BWSSB) has undertaken an initiative to constructed percolation/recharge wells across the city of Bangalore.

About

• Percolation wells serve as crucial infrastructural elements in the conservation and restoration of groundwater.
• These wells are strategically designed to capture rainwater, facilitating its percolation into the ground.
• By creating a conducive percolation and filtration environment, these wells trigger the natural replenishment of aquifers, thereby restoring and conserving groundwater levels.

Of all the types grown in Karnataka, the arecanut cultivated in the Tirthahalli region turned out to be the highest grade variety. 

About

Family: Arecaceae

• Areca is actually a berry (and not a nut)
• India is the world's largest producer and consumer of betel nut. Karnataka is the leading areca-nut producing state, followed by Kerala.
• Areca nut trees can reach heights of 12 to 20 meters, and their crown-shaped leaves can reach lengths of 30 to 60 meters. The fruits range in length from 3 to 5 cm, are smooth, oblong in shape, have one seed, and are colored from green to orange.
• Areca nuts, the fruit's endosperm, have a diameter of 2-4 cm and are reddish-brown or greyish-brown in color.
• Areca nuts contain negligible amounts of terpineol, lignin, tannins arecatannin and gallic acid, alkaloids (arecoline, arecaidine) and guvacine, loaded with vasoconstricting properties. 

The discussion revolves around the implications of the 3G spectrum auction of 2010 and the subsequent move towards administrative allocation, highlighting the challenges and opportunities in spectrum assignment in the Indian telecom sector.

Transition from Auctions to Administrative Allocation:

• Background of Spectrum Allocation: The 3G spectrum auction in 2010 marked a shift from administratively assigned spectrum to auction-based allocation, aiming to address issues of transparency and revenue generation following the 2G scandal of 2008.
• Challenges with Auction-Based Allocation: While auctions initially ensured transparency and revenue windfall, concerns have arisen regarding their impact on sector growth and competitiveness, with historical institutional integrity issues exacerbating the challenge.
• Exploration of Alternatives: Arguments are presented for exploring alternatives to auctions, such as providing spectrum at reasonable upfront fees, akin to toll roads' model, to enhance firm-level efficiency and promote downstream competitiveness in the digital infrastructure landscape.

Policy Decisions and Government Prerogative:

• Regulatory Oversight and Accountability: The Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI) are highlighted as key entities responsible for spectrum assignment decisions, to execute functions and make accountable policy decisions.
• Recent Developments: The DoT's move to seek modification of the SC’s order to allow administrative allocation in select cases, as specified in the Telecom Act, 2023, underscores the evolving dynamics of spectrum assignment and the government's prerogative in policy decisions.
• Importance of Specialized Expertise: The example of TRAI's engagement in tariff fixing in 1998 highlights the significance of specialist bodies in executing functions with far-reaching implications, advocating for policy decisions in the telecom sector to be entrusted to specialized entities for effective implementation and accountability.

Mains question:

Discuss the transition from auction-based to administrative spectrum allocation in the Indian telecom sector, analyzing the challenges and opportunities associated with each approach.

The Supreme Court of India's recent extension of constitutional rights to include protection from the ill-effects of climate change has sparked both hope and criticism, amidst global concern over the escalating climate crisis.

Right against Climate Change as a Fundamental Right:

• Significance of the judgment: The Court's decision expands constitutional rights to encompass protection from the adverse impacts of climate change, offering a glimmer of hope amid the alarming ecological predicament faced by the world.
• Potential for action: The judgment has the potential to catalyze actions aimed at mitigating, adapting to, or reversing the impacts of the climate crisis, particularly in addressing the disproportionate burden borne by marginalized communities.
• Flaws in the judgment: The judgment fails to adequately address certain critical aspects related to India's proposed energy transition and alternative approaches to sustainable development.
  
  

Issues with India's Energy Transition:

• Inclusion of problematic energy sources: The government's definition of "non-fossil-fuel" and "renewable" energy encompasses large hydropower and nuclear plants, which pose significant ecological and social challenges, including biodiversity loss, displacement of communities, and long-term nuclear waste concerns.
• Adverse impacts of mega-renewable projects: Mega-solar and wind projects also come with adverse environmental consequences, such as land degradation, habitat destruction, and displacement of local communities, while being excluded from rigorous environmental impact assessments.
• Failure to reduce coal investments: Despite substantial investments in renewable energy, the government continues to greenlight new coal mining projects, exacerbating environmental degradation and social injustices, especially in indigenous areas.
  
  

Mains question:

Discuss the recent Supreme Court judgment extending constitutional rights to protect individuals from the adverse impacts of climate change in India.

The Prime Minister's initiative to establish India as a leading global gaming hub has garnered attention following his engagement with top gamers in the country, focusing on regulatory challenges and industry growth prospects.

Rapid Growth of Online Gaming Industry:

• Expansion trajectory: The online gaming sector in India has experienced rapid growth, with a 28% Compound Annual Growth Rate (CAGR) between FY20 and FY23, and projections indicating further expansion to Rs 33,243 crore by FY28.
• Potential for India's digital economy: Leveraging India's IT capabilities, the gaming industry presents significant opportunities for Indian start-ups, contributing to the vision of a USD 1 trillion digital economy and positioning India as a key player in the global gaming market.
• Policy measures and regulatory clarity: Recent policy initiatives, including the establishment of task forces and regulatory frameworks, have provided clarity and certainty for online gaming startups, fostering innovation and investment in the sector.

Issues Requiring Government Attention:

• Implementation of regulatory mechanisms: Despite the introduction of self-regulatory bodies and guidelines, effective implementation remains a challenge, impacting the intended regulatory outcomes in an industry characterized by rapid technological advancements.
• Taxation concerns: Revisions in taxation, such as the enforcement of a 28% GST rate on total bets, regardless of skill or chance, have raised sustainability concerns for gaming firms and potential implications for job creation.
• Shaping the future of gaming: By fostering an enabling environment for skill gaming, promoting diversity, and leveraging cultural narratives, India can position itself as a global leader in the gaming industry, shaping its future trajectory.

Mains question:

Evaluate the challenges and opportunities faced by the online gaming industry in India, along with the regulatory measures required to foster sustainable growth and innovation.