GS Analyst: Daily Current Affairs

The Union Cabinet approved India's signing of the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement. This agreement focuses on conserving and sustainably using marine biodiversity in areas beyond national jurisdiction, often referred to as the 'High Seas'.

About the Agreement

• The BBNJ Agreement, part of the United Nations Convention on the Law of the Sea (UNCLOS), aims to protect marine biodiversity in the high seas.
• The agreement provides for the common governance of about half of the Earth’s surfaceand 95% of the ocean’s volume, the largest habitat on our blue planet.
• It establishes mechanisms for sustainable use through international cooperation and coordination.
• Objective:The treaty is meant “to prevent a cascading of species extinctions” brought on by overfishing, oil extraction, deep-sea mining and other activities with environmental impacts that occur in the high seas.
• It enables Marine Protected Areas (MPAs)to be established within the high seas, which will limit the presence of harmful human activities.
• Features and Principles:
  • Parties cannot claim sovereign rights over marine resources in the high seas, ensuring fair and equitable benefit-sharing.
  • Emphasizes an ecosystem-centric approach, integrating traditional knowledge and scientific insights.
  • Promotes environmental impact assessments and area-based management tools to minimize harm to marine ecosystems.
• Implementation: The Ministry of Earth Sciences will lead India's implementation of the BBNJ Agreement. When ratified, it will be the third UNCLOS implementation agreement, alongside those regulating seabed mining and fish stocks.

Need of the Agreement

• Overexploitation of Global Fish Stocks: As of 2023, 90% of large fish populations are depleted. Overfishing disrupts marine food chains and ecosystems, impacting biodiversity.
• Plastic Pollution: Millions of tons of plastic waste with toxic chemicals enter coastal ecosystems. This harms marine life such as fish, sea turtles, seabirds, and mammals. Plastic enters the food chain and can affect human health.
• Climate Change Impact on Oceans: Global warming is raising ocean temperatures. This leads to more severe storms, higher sea levels, and salinization of coastal areas. These changes threaten marine habitats and coastal communities.

Benefits for India:

• It will enhance India's strategic presence beyond its Exclusive Economic Zone (EEZ), facilitating scientific research, technology transfer, and capacity building.
• Furthermore, it will strengthen marine conservation efforts and promotes collaborations for shared benefits and sustainable development.

In a positive development, Rajasthan will shortly become the first State in the country to adopt an action plan for road safety for the next 10 years. The action plan, to be accompanied by a government policy, will be aimed at reducing road accidents in the State by 50% till 2030.

Key-highlights of the Plan

As per the draft,

• Phase 1 (2025 till 2027): The focus will be on institutional strengthening, capacity building, and completion of action plan interim targets.
• Phase 2 (2028 till 2030): The focus will be on reduction of 50% of road accident fatalities in line with UN’s Second Decade of Action for Road Safety.
• Phase 3 (2031 till 2033): The plan will focus on reduction of 75% of road accidents fatalities.

Reason behind increasing road accidents

• As per the “Annual Report on ‘Road Accidents in India-2022” published by the Ministry of Road Transport and Highways, India saw 4.6 trillion accidents, and 168,000 deaths and over 400,000 seriously injured people in these mishaps. It’s a 12 per cent jump in accident numbers and a 10 per cent spike in deaths.
• Factors responsible:
  • inadequate infrastructure
  • inadequate law enforcement of traffic laws
  • inadequate engineering practices
  • lack of public awareness about safe driving practices
  • unsatisfactory quality of detailed project reports (DPRs)
  • lack of fear regarding legal repercussions

Impact of Road Accidents

• Road accidents’ impact goes far beyond the immediate tragedy. They result in an economic loss equivalent to 3.18% of the GDP.
• The workforce also suffers from lost productivity due to fatalities and disabilities.
• These accidents also incur immense financial burdens from medical costs, vehicle repairs, and infrastructure damage.

Required Measures:

• Integration of smart infrastructure, like
  • intelligent traffic management systems
  • real-time data analytics
• Emerging technologies also hold immense promise in minimizing human errors and enhancing collision avoidance capabilities, such as
  • vehicle-to-vehicle (V2V) communication
  • autonomous driving systems
• India has set a target to halve the number of road accidents by 2030. 

Despite extensive Western sanctions in place for over two years, Russia's economy has surprisingly performed well recently. The World Bank upgraded Russia to a "high-income" country due to significant growth in trade (+6.8%), finance (+8.7%), and construction (+6.6%) sectors.

Factors Driving Growth:

• Growth is largely attributed to increased military-related activity, which has boosted economic indicators temporarily.
• Fiscal stimulus, military spending, and credit expansion have supported recovery post-sanctions.
• Trade diversification to China, India, Türkiye, and Central Asia helped mitigate the impact of Western sanctions.
• Strong private consumption, driven by low unemployment (3%) and rising wages, has bolstered economic activity.
• Government spending, including increased defense spending (about 7% of GDP), has also contributed to growth.
• Challenges and Uncertainties: Long-term economic prospects remain uncertain due to ongoing sanctions and supply chain disruptions.

Why Sanctions on Russia Haven't Worked

• Oil Sector Dynamics: Sanctions on Russia's energy sector were designed with loopholes to prevent a sharp rise in global oil prices and ensure continued supply to Western markets. Despite reduced exports to Western Europe, Russia has successfully redirected oil shipments to other regions like China and India, maintaining overall export volumes and revenue.
• Investment Resilience: Despite sanctions, corporate investment in Russia has rebounded, particularly in defense and manufacturing sectors. Some imports have been substituted with domestic production, prompting investments in new manufacturing facilities.
• Consumption and Economic Activity: Strong consumer spending, supported by low unemployment and rising wages, has sustained economic growth. Fiscal policies and increased defense spending have injected further stimulus into the economy, countering the impact of sanctions.
• Economic Adaptation: Russia has successfully shifted its trade focus away from Western countries to alternative markets in Asia and Eurasia, reducing reliance on sanctioned economies. Over time, Russian economic policies have adapted to sanctions imposed since 2014, minimizing their overall impact.

The Ministry of Labour rebutted a recent report by Citigroup which forecast that India will struggle to create sufficient employment opportunities even with a 7 per cent growth rate. The Ministry stated that official data sources like PLFS, RBI, etc. show consistent improvements in the key labour market indicators, including increased LFPR and WPR, and a declining Unemployment Rate during last five years.

State of ‘unemployment’ in India

• India Employment Report 2024 (created jointly by the Institute for Human Development and the International Labour Organisation)
  • India's working population increased from 61 percent in 2011 to 64 percent in 2021, and it is projected to reach 65 percent in 2036.
  • However, the percent of youth involved in economic activities declined to 37 percent in 2022. 
• Centre for Monitoring Indian Economy (CMIE):

• • The unemployment rate in India stood at 9.2 percent in June 2024, a sharp increase from 7 percent in May 2024.
  • Female unemployment reached 18.5 percent, exceeding the national average, in June 2024. This is up from 15.1 percent in the same period last year.
  • At the same time, male unemployment stood at 7.8 percent, slightly higher than 7.7 percent in June 2023.
  • The Labour Participation Rate (LPR) rose to 41.4 percent in June 2024 from 40.8 percent in May and up from 39.9 percent in June 2023, the rural unemployment rate rose to 9.3 percent in June from 6.3 percent in May.
  • The urban unemployment rate climbed from 8.6 percent to 8.9 percent.

• As per PLFS and RBI's KLEMS data, India has generated more than 8 crore (80 million) employment opportunities from 2017-18 to 2021-22. This translates to an average of over 2 crore (20 million) employment per year.
• The Annual Periodic Labour Force Survey (PLFS) report highlights positive trends in key labour market indicators over the past five years for individuals aged 15 years and above.
  • Labour Force Participation Rate (LFPR): The LFPR rose from 49.8% in 2017-18 to 57.9% in 2022-23.
  • Worker Population Ratio (WPR): The WPR increased from 46.8% in 2017-18 to 56% in 2022-23.
  • Unemployment Rate (UR): The Unemployment Rate decreased from 6% in 2017-18 to 3.2% in 2022-23.

How unemployment rate is calculated in India?

• The unemployment rate is expressed as a percentage and is influenced by economic conditions:
  • High Unemployment: Occurs during economic downturns when job opportunities are scarce.
  • Low Unemployment: Seen in periods of economic growth and prosperity when job availability increases.
• Formula for Calculating Unemployment Rate: The unemployment rate in India is calculated using the following formulas:
  • Unemployment Rate = Number of Unemployed Persons / Civilian Labor Force or
  • Unemployment Rate = Number of Unemployed Persons / (Number of Employed Persons + Number of Unemployed Persons)
• Criteria for Classification as Unemployed: To be considered unemployed in India, individuals must meet specific criteria:
  • Age: Must be at least 16 years old.
  • Availability: Available to work full-time during the last four weeks.
  • Actively Seeking Employment: Actively searching for job opportunities during this period.
  • Exceptions: Temporarily laid-off individuals actively seeking to return to their previous jobs are also classified as unemployed.

West Bengal Chief Minister Mamata Banerjee has raised concerns over the Teesta water issue and the Farakka Treaty. Banerjee pointed out the lack of water in Teesta during summer and its overflow in the monsoon, and also highlighted the need to renew the Farakka Treaty.

About Teesta River

• The Teesta River originates from the Pahunri Glacier, over 7,068 meters high in the Sikkim Himalayas.
• It flows southward through Sikkim, gathering speed through gorges and rapids.
• As it passes Rangpo, the Rangpo River joins it, marking the border between Sikkim and West Bengal up to Teesta Bazaar.
• Near the Teesta Bridge, it meets its main tributary, the Rangeet River, and then turns southward into West Bengal.
• From there, the river continues south, crossing into Bangladesh near It eventually merges with the Brahmaputra River at Teestamukh Ghat in Bangladesh's Rangpur district.
• The Teesta River is known for its turbulent flow and carries a significant amount of sediment and boulders. Its basin covers 9,855 sq.km in India, primarily in Sikkim (72.43%) and West Bengal (27.57%). The river itself is 414 km long with a total drainage area of 12,540 sq.km, spanning across India and Bangladesh.

The new criminal laws have become effective from July 1. SOPs have been issued by the Bureau of Police Research and Development (BPRD) to guide police officers in implementing the new provisions.

Key-highlights of the new Provisions

• Rules for Registering FIRs:
  • Police must register an FIR (First Information Report) regardless of jurisdiction issues ("zero FIR") and transfer it to the appropriate police station.
  • FIRs can be filed orally, in writing, or electronically, which must be acknowledged within three days by the police.
  • Bharatiya Nagarik Suraksha Sanhita(BNSS) has a direct provision under Section 173; non-registration of FIRs may attract penal action under various sections.
• Videography Requirements:
  • The BNSS mandates videography during a search conducted by the police under Section 185; of the scene of crime (Section 176); and of the process of conducting a search of a place or taking possession of any property (Section 105).
  • The 'eSakshya' mobile app facilitates capturing geo-tagged and time-stamped photos and videos for legal integrity.
• Provisions on Arrest:
  • Information about arrested persons must be prominently displayed at police stations and district control rooms.
    • Section 37 of the BNSS requires a police officer in every police station, not below the rank of Assistant Sub-Inspector, to be responsible for maintaining and prominently displaying information about the arrested persons.
  • Special provisions govern the arrest of frail, sick, or elderly individuals, requiring higher-level approval and cautious use of handcuffs.
    • Section 35(7) states that the permission of an officer not below the rank of DySP is mandatory for arresting a person charged with an offence punishable for imprisonment of less than three years if such person is infirm or is above 60 years of age.
  • Timelines and Procedures:
    • Section 184 (6): Medical reports for rape victims must be forwarded to the investigating officer within seven days for submission to the magistrate.
    • POCSO cases (Protection of Children from Sexual Offences) must be investigated within two months from the date of reporting.
    • Chain of custody for electronic devices is crucial, with updates on investigation progress to be provided to informants or victims within 90 days.
    • Section 113 introduced in the Bharatiya Nyaya Sanhita (BNS) defines what is a ‘terrorist act’ and imposes the duty on an officer, not below the rank of Superintendent of Police (SP), to decide whether to register a case under this Section or the UAPA.

The Central government's Linguistics Expert Committee recommended tweaks in the criteria for granting classical status.

Current Status and Demands:

• Currently, India has six classical languages: Tamil (declared in 2004), Sanskrit (2005), Kannada (2008), Telugu (2008), Malayalam (2013), and Odia (2014).
• Current Criteria for Classical Language Status:
  • High antiquity of its early texts/recorded history over a period of 1500-2000 years;
  • A body of ancient literature/texts, which is considered a valuable heritage by generations of speakers
  • The literary tradition be original and not borrowed from another speech community
  • The classical language and literature being distinct from modern, there may also be a discontinuity between the classical language and its later forms or its offshoots.
• Benefits: Designated classical languages receive benefits such as
  • international awards for scholars
  • establishment of centers of excellence
  • creation of professional chairs in universities
• There have been demands from various states and literary circles, including Maharashtra, for classical status for languages like Marathi, Bengali, Assamese, and Maithili.
• The demand for Marathi has been pending for over a decade despite multiple assurances from the Central government. In 2014, a committee chaired by Ranganath Pathare concluded that Marathi meets all criteria for classical language status.

India is gearing up to launch its most ambitious port project yet—a colossal venture set to reshape the country’s maritime capabilities. Situated on the Maharashtra coast, the Vadhavan Port promises to be a game-changer in global shipping, projected to rank among the top 10 container ports worldwide upon completion.

Key Features of Vadhavan Port

The Rs 76,220 crore, all-weather, deep-draft port near the Gujarat border received cabinet approval in June 2024. It’s important features are:

• Capacity: Annual capacity of 298 Million Metric Tonnes (MMT) and handling 23.2 Million Twenty-foot Equivalent Units (TEUs) annually.
• Phase 1: Initial operations will start with a capacity to handle 15 Million TEUs.
• Infrastructure: The port will feature nine container terminals, each extending 1,000 meters along the coast, and multiple specialized berths including multipurpose, liquid bulk, Ro-Ro, and small craft facilities.
• Container Terminals: Spread across the port, these terminals include storage yards directly behind the quay apron, optimized for streamlined container handling.
• Specialized Berths: Apart from container handling, the port includes berths for multipurpose cargo, liquid bulk, Ro-Ro operations, and small craft, catering comprehensively to diverse maritime needs.
• Rail and Onshore Facilities: A dedicated rail terminal and onshore reclamation areas further enhance logistical capabilities, ensuring seamless integration with national and regional transport networks.
• It will be over three times the size of India's current largest ports—the government-operated Jawaharlal Nehru Port Authority (JNPA) in Mumbai and the Adani-owned Mundra.
• The Vadhavan port, set to be operational by 2030, will be developed by reclaiming 1,448 hectares of sea land, eliminating the need for land acquisition.

Strategic Significance

• Geopolitical Importance: Serving as a pivotal hub in the Arabian Sea, the port is strategically placed to facilitate trade routes linking India with the Middle East, Europe, and Africa.
• IMEC Corridor: As the starting point for the India-Middle East-Europe Economic Corridor (IMEC), Vadhavan Port is poised to play a pivotal role in enhancing India’s trade relations across continents.

The Indian stock market is hitting new highs, with the market capitalization of Public Sector Undertakings (PSUs) nearly doubling from $404 billion in 2022-23 to $804 billion currently. This presents a unique opportunity for the government to accelerate its disinvestment agenda and generate resources for infrastructure development and job creation.

PSU Performance and Market Rally:

• Market capitalization surge: PSU market cap has almost doubled to $804 billion, exceeding the total budgeted expenditure of $560 billion in the 2024-25 interim budget.
• Record profitability: PSU profits are expected to reach around 2% of GDP, with PSUs attaining record high returns on equity.
• Outperformance: PSU and public sector bank (PSB) stocks have significantly outperformed their private peers and the broader market.

Government's Stake-Selling Opportunity:

• Disinvestment target: The government has set a divestment target of $6 billion for 2024-25, 67% higher than the revised target of $3.6 billion for 2023-24.
• Compliance with regulations: Many PSUs, especially banks, have government stakes exceeding Sebi's 75% maximum shareholding norm, providing room for stake sales.
• Monetization benefits: Stake sales can help improve market liquidity, generate resources for infrastructure development, and create jobs.

Challenges and Strategies for Disinvestment:

• Hurdles: Disinvestment faces challenges such as multiple stakeholders, extended regulatory processes, global economic volatility, and political opposition.
• Alternative methods: Experts suggest using offer-for-sale (OFS) mechanism, block deals, or selling small quantities in the secondary market to overcome challenges.
• Past performance: Of the $50 billion raised from divestments in the last 10 years, $37.5 billion came from minority stake sales.

UPSC Mains Questions:

Q. Evaluate the government's disinvestment strategy in light of the recent surge in PSU market capitalization. How can this opportunity be leveraged to achieve broader economic goals?

The Philippines, under President Ferdinand Marcos Jr., is adopting a more assertive stance against China in the South China Sea dispute. This shift in foreign policy, coupled with strengthening U.S.-Philippines relations and support from Quad countries, is altering the geopolitical dynamics in the Indo-Pacific region. The situation highlights the delicate balance between security concerns and economic interests in the area.

Philippines' Shifting Foreign Policy under President Marcos Jr.:

• Assertive stance: Marcos Jr. criticizes China's "illegal, coercive, aggressive, and deceptive actions" in the South China Sea at the Shangri-La Dialogue.
• S.-Philippines relationship upswing: Stronger ties since Marcos Jr.'s 2022 election, prioritizing security cooperation over Chinese development funds.
• Heightened tensions: Marcos Jr. warns of potential "act of war" if Filipinos are killed by Chinese forces; China plans to arrest "trespassers" in claimed areas from June 15, 2023.

Strategic Importance of the Philippines in the Indo-Pacific:

• Crucial geographic location: Indispensable actor in U.S. Indo-Pacific strategy to counter China's influence.
• Military modernization: $35 billion acquisition list approved in January for enhancing surveillance and power projection capabilities.
• Revitalization of strategic bases: Plans to modernize Subic Bay for naval operations and Clark Air Base for "Joint Air-Sea-Land Operations".

International Support and Dual Engagement Challenges:

• Quad countries' assistance: India delivers BrahMos missiles ($374.96 million deal); Japan provides coastal surveillance radars and funds patrol ships; Australia is the second-largest bilateral grant aid donor.
• S. cautious support: Mutual Defense Treaty since 1951; concerns about opening another front against China.
• Economic reliance on China: $9.1 billion in state-directed finance to previous administrations (2000-2022), creating a challenging dual engagement scenario.

UPSC Mains Questions:

Q. Evaluate the role of Quad partners in enhancing the defense capabilities of the Philippines. What are the implications for regional security in the South China Sea?

The recent push for universal HPV vaccination in India raises questions about its necessity, timing, and pricing. This discourse comes amidst declining cervical cancer trends globally and the introduction of the indigenous HPV vaccine 'Cervavac' by the Serum Institute of India (SII).

Controversies Surrounding HPV Vaccination:

• Causality debate: The direct causal link between HPV and cervical cancer is not conclusively proven, with only a few strains out of 200 associated with precancerous lesions.
• Declining trends: Population Based Cancer Registries (PBCR) and International Agency for Research on Cancer (IARC) acknowledge decreasing cervical cancer prevalence regardless of vaccine coverage.
• Ethical concerns: Universal vaccination of pre-puberty girls raises moral questions in Indian society and may perpetuate patriarchal notions.

Development and Pricing of Indigenous HPV Vaccine:

• Delayed development: Nearly two decades gap between patented HPV vaccines in the Global North and India's 'indigenous' Cervavac, despite similar rDNA techniques.
• Funding and infrastructure: Cervavac development received $7 million from the Bill & Melinda Gates Foundation and utilized infrastructure supported by the Indian government.
• Pricing concerns: Despite public funding and shared infrastructure, Cervavac's market price (?2,000 per dose) remains high, raising questions about the pricing strategy.

Impact of Global Patent Regimes on Vaccine Development:

• Shift in innovation landscape: Changes in U.S. patent laws and their global adoption through TRIPS agreement transformed vaccine development from public to private sector.
• Indian scenario: India's transition from process patents to product patents delayed the development of generic versions of patented vaccines.
• Competition issues: Despite multiple domestic players announcing HPV vaccine development, Cervavac remains the sole indigenous option, limiting price competition.

UPSC Mains Questions:

Q. Evaluate the ethical and public health implications of universal HPV vaccination in India. How does this policy align with the country's socio-cultural context and existing health priorities?