03-December-2024-Daily-Current-Affairs

CITIZENS WITH DISABILITIES: ENSURING THEIR RIGHTS

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Rights of Persons with Disabilities Act, 2016 (RPWD Act) is a significant step toward empowering individuals with disabilities in India. Despite legal provisions, challenges remain in fully implementing the rights of persons with disabilities.

Key Statistics

• 2011 Census: 2.21% of India’s population has disabilities (underestimated).
• WHO 2019 Survey: Severe disability prevalence among Indian adults is 16%.

Role of the State Commissioner for Disabilities

• Powers and Functions: Established under the RPWD Act to monitor, review, and ensure the effective implementation of disability rights.

• Empowered with quasi-judicial authority, equivalent to a civil court under the Civil Procedure Code, 1908. Can conduct suo motu inquiries into violations of the RPWD Act.

Challenges in Implementation:

• Delays in Appointments: Many states lack dedicated commissioners, with posts often filled by civil servants holding additional roles.
• Conflict of Interest: Civil servants may lack the independence to monitor executive actions.
• Limited Suo Motu Action: Inadequate intervention in discriminatory policies has eroded public trust.

Best Practices

Karnataka’s Model:

• Collaboration with legal experts and law schools for capacity building.
• Organizing mobile courts (Adalat’s) in remote areas to address grievances on the spot.
• District Disability Management Review (DDMR): Regular monitoring of schemes and policies at the district level to ensure quotas and programs are implemented effectively.
• Designation of District Magistrates as Deputy Commissioners for Disability Rights to improve local governance.

Delhi’s Efforts: Strengthened grievance redress mechanisms and instilled public confidence.

Recommendations for Improvement

• Inclusive Appointments: Prefer candidates with experience in law, human rights, or social work over civil servants. Women with disabilities should also be considered to address intersectional discrimination.
• Capacity Building: State Commissioners should receive training in legal procedures and their quasi-judicial roles. Research collaboration with international organizations on disability inclusion strategies.
• Transparency and Accountability: Public dashboards to display case status, pending complaints, and annual reports.

Conclusion

The RPWD Act provides a robust framework for protecting the rights of persons with disabilities. States like Karnataka showcase the potential for effective implementation through innovative practices and inclusive governance. Scaling such models across India can ensure the rights of persons with disabilities are upheld, fostering a truly inclusive society.

TRUMP’S THREAT TO BRICS OVER DOLLAR REPLACEMENT

TOPIC: (GS2) INTERNATIONAL RELATIONS: INDIAN EXPRESS

Former U.S. President Donald Trump has issued a warning to the BRICS nations (Brazil, Russia, India, China, and South Africa) against efforts to reduce dependence on the U.S. dollar. In a social media post, he threatened to impose 100% tariffs on countries supporting an alternative global currency, highlighting concerns over the dollar’s dominance in international trade.

Key Points

Trump’s Warning:

• Trump demanded a commitment from BRICS nations to abandon plans for creating a common currency or promoting alternatives to the dollar.
• He threatened to impose steep tariffs on nations attempting to weaken the dollar’s role in global trade.

Background Context:

• The U.S. dollar accounts for over 90% of global transactions, but its dominance has been questioned due to sanctions imposed through financial networks like SWIFT.
• Nations like Russia and Iran have faced exclusion from these systems, spurring the search for alternatives.

Impact on BRICS Strategy:

• Russian President Vladimir Putin criticized the weaponization of the dollar, while Indian PM Modi emphasized maintaining balance in BRICS’ financial strategies.
• Experts believe U.S. tariffs could escalate economic tensions without significantly impacting BRICS’ plans.

Economic Arguments Against Tariffs:

• Trade experts argue that 100% tariffs may raise costs for American consumers and fail to revitalize U.S. manufacturing.
• BRICS’ efforts to diversify trade mechanisms are seen as a response to U.S. unilateral financial policies, not an anti-American stance.

India’s Approach:

• India advocates for multipolarity in trade while balancing its strategic ties with the U.S.
• The RBI’s push for rupee-based trade mechanisms reflects India’s cautious steps toward reducing dollar reliance.

Global Reserve Currency Trends:

• The IMF reports a gradual decline in the dollar’s share in global reserves, with modest gains for non-traditional currencies like the Chinese renminbi.

Challenges in Bilateral Trade:

• India-Russia trade in rupees remains limited due to sanctions and trade imbalances, with Russia holding significant unused rupee reserves.

Conclusion

Trump’s statement highlights the U.S.’s intent to safeguard the dollar’s supremacy, but it may deepen global financial shifts. For India, a balanced approach focusing on economic reforms, global trade leadership, and strategic diplomacy will be essential to navigating these challenges.

RBI’S CHALLENGE: BALANCING GROWTH AND INFLATION

TOPIC: (GS3) INDIAN ECONOMY: THE HINDU

The central bank prioritizes controlling inflation, questions are being raised about its assessment of growth dynamics. The recent GDP data showing slower growth has reignited debates on whether the RBI has maintained high interest rates for too long without adequately considering the economic slowdown.

Key Concerns about RBI’s Approach

• Growth vs. Inflation Focus: The RBI’s monetary policy has prioritized inflation control, keeping interest rates unchanged to stabilize price levels. Critics argue that the central bank underestimated signs of slowing growth in the economy.
• Mismatch in Growth Forecasts: In June, the RBI projected 7.2% growth for the year, which was optimistic compared to other signals. In the second quarter, GDP grew at 5.4%, much lower than the RBI’s October projection of 7%.
• Government’s Criticism: The government has questioned the RBI’s evaluation of the economy, suggesting that its growth expectations were overly optimistic. Discrepancies between the RBI’s growth outlook and corporate sector experiences have added to the debate.

Inflation and Price Dynamics

• Inflation Trends: Inflation has risen, primarily due to food prices, especially vegetables. Government officials argue that core inflation, excluding gold and silver, remains stable, contradicting the RBI’s concerns about inflationary spillovers.
• Inflation Targeting Framework: The RBI operates within a flexible inflation targeting framework of 4% (±2%). Transient supply shocks, such as rising vegetable prices, are expected to moderate over time.

Debate Over Monetary Policy Stance

• Interest Rates and Growth Impact: Real interest rates are perceived to be excessively high, potentially restricting economic activity. Former Monetary Policy Committee (MPC) members and analysts suggest a more balanced approach may be needed.
• Future Focus: With inflation expected to be 4.2% in Q4 of this fiscal year, questions arise about whether the RBI will shift its focus to growth. The central bank may also consider the rupee’s stability as an additional factor in policy decisions.

Way Forward for the RBI

• Policy Flexibility: Leverage tools to balance inflation control and growth support effectively.
• Data-Driven Decisions: Strengthen the analysis of macroeconomic indicators for better forecasting and timely interventions.
• Engagement with Stakeholders: Incorporate insights from the government and industry to align policy with ground realities.

MONETARY POLICY COMMITTEE (MPC)

The MPC is a statutory body established under the Reserve Bank of India (RBI) Act, 1934, to decide India’s monetary policy, particularly the benchmark interest rates.

• Its primary objective is to maintain price stability while considering the goal of economic growth.

Responsibilities:

• Setting the policy repo rate, which influences lending and borrowing rates in the economy.
• Formulating monetary policy based on inflation targeting within a range of 4% ± 2%.

Significance:

• Ensures a balanced and independent approach to monetary policy decision-making by involving external experts alongside RBI officials.

Composition of the MPC

Total Members: The MPC consists of six members.

• Three members are from the RBI:
• The RBI Governor (Chairperson of the MPC).
• The Deputy Governor in charge of monetary policy.
• One RBI officer nominated by the central bank.

1. • Three external members are appointed by the Central Government for a four-year term.

Conclusion

The RBI faces the dual challenge of managing inflation and ensuring economic growth. As growth slows and inflation moderates, it must adopt a dynamic approach to monetary policy that aligns with evolving economic conditions, while maintaining its primary mandate of price stability.

WINDFALL GAINS TAX ON CRUDE OIL AND FUEL EXPORTS SCRAPPED

TOPIC: (GS3) ECONOMY: THE HINDU

The government has abolished the windfall gains tax on domestic crude oil production and the export of petrol, diesel, and aviation turbine fuel (ATF). This tax was originally introduced in 2022 to manage profits from elevated global oil prices and stabilize domestic fuel supplies.

Key Details

Background of the Tax:

• Imposed on July 1, 2022, following the surge in global oil prices after Russia’s invasion of Ukraine.
• Domestic crude oil prices are linked to international benchmarks, leading to a sharp rise in domestic rates.
• The tax aimed to curb excessive exports by refiners and ensure stable domestic fuel supplies.

Purpose of the Tax:

• To capture windfall profits from oil producers and exporters during high global prices.
• Offset revenue losses from reduced excise duty on petrol and diesel in the domestic market.

Reasons for Withdrawal:

• Significant decline in international crude oil and fuel prices.
• Domestic fuel supplies have remained robust and stable.
• Revenue collection from the tax had declined over the years:
• ₹25,000 crore in FY23.
• ₹13,000 crore in FY24.
• ₹6,000 crore in FY25 (so far).

Implementation Timeline:

• Levies on petrol exports were reduced to nil in July 2022.
• Diesel exports became tax-free by March 2024.
• ATF exports saw the tax removed in January 2024.
• Domestic crude production was exempted in September 2024.

Conclusion

The removal of windfall gains tax reflects a stabilization of global oil markets and domestic fuel supplies. However, enabling provisions remain, allowing the government to reimpose the levy if required.

RISING HOME PRICES IN INDIA: TRENDS AND IMPACTS

TOPIC: (GS3) ECONOMY: INDIAN EXPRESS

Home prices in India have risen steadily despite challenges like high interest rates and inflation. The Reserve Bank of India’s (RBI) Home Price Index (HPI) indicates a significant increase, showcasing robust demand and positive market sentiment in the real estate sector.

Key Highlights of the RBI’s Home Price Index (HPI)

• Overall Increase in HPI: HPI rose by 34% year-on-year, reaching 322 in September 2024 from 308.6 in September 2023. Over a decade, HPI surged by nearly 67%, reflecting long-term growth.
• City-Wise Trends: Highest annual growth: Bengaluru (8.76%). Mumbai: 2.95% increase, Delhi: 3.31% increase, Bengaluru: 8.76% increase.
• Cities like Ahmedabad, Lucknow, Kolkata, and Chennai recorded sequential rises in prices during the latest quarter.
• Broader Market Trends: Average housing prices in the top eight cities rose by 11% year-on-year in Q3 2024, reaching Rs. 11,000 per sq ft.
• Delhi NCR saw the highest price increase at 32%, followed by Bengaluru at 24%.

Key Insights from the Real Estate Sector

• Demand and Unsold Inventory: Strong sales momentum has reduced unsold inventory for the third consecutive quarter, which now stands at 10 lakh units across major cities. The Mumbai Metropolitan Region (MMR) accounts for 40% of this inventory.
• Consumer Preferences and Market Dynamics: Increasing demand for larger homes reflects aspirational buying trends. Developers are adapting by offering compact units in price-sensitive segments.
• Future Outlook: Industry experts anticipate rate cuts and flexible payment plans to boost affordability and sustain demand. Positive market fundamentals indicate continued growth in residential real estate.

Conclusion

The steady rise in home prices underscores strong demand and favorable market conditions. The anticipated easing of monetary policies and innovative developer strategies are likely to sustain this momentum in the coming years.

IMMENSE SOLAR STORM

TOPIC: (GS1) GEOGRAPHY: THE HINDU

Scientists have discovered evidence of a massive solar storm that occurred around 664–663 BCE. This rare event highlights the powerful and unpredictable nature of solar activity and its potential effects on Earth.

What is a Solar Storm?

• A solar storm refers to a burst of energy, particles, magnetic fields, and solar material ejected into space by the Sun.
• It is caused by the Sun’s dynamic magnetic activity.

Causes of a Solar Storm

• Sun’s Magnetic Activity: The Sun’s equator rotates faster than its poles, causing magnetic fields to tangle and twist.
• Magnetic Reconnection: When the twisted magnetic fields stretch too much, they snap and reconnect, releasing vast energy.
• Eruptions Generated by Solar Storms:
  • Solar Flare: A bright flash of light from the Sun.
  • Radiation Storm: High-speed solar particles propelled into space.
  • Coronal Mass Ejection (CME): A massive cloud of solar material ejected outward.

Effects of Solar Storms on Earth

• Geomagnetic Storms: When solar storms hit Earth, they disrupt the planet’s magnetic field, leading to geomagnetic storms.
• Potential Impacts: Technological Disruptions: Radio blackouts and power grid failures. Auroras: Creation of stunning light displays near the poles.
• Protection from Harm: Earth’s magnetic field and atmosphere shield humans from direct harm caused by solar storms.

Significance of the Discovery

• The finding of the 664–663 BCE solar storm enhances our understanding of extreme solar events.
• It underscores the need for advanced monitoring systems to predict and mitigate potential disruptions to modern technology and infrastructure.

Conclusion

Solar storms are extraordinary cosmic events driven by the Sun’s magnetic activity. While Earth’s magnetic field offers protection, the effects on technology and infrastructure necessitate continuous research and preparedness. The study of past solar storms serves as a reminder of the Sun’s immense power and its potential influence on our planet.

URBAN INFRASTRUCTURE DEVELOPMENT FUND (UIDF)

TOPIC: (GS2) INDIAN ECONOMY: THE HINDU

The government has introduced the Urban Infrastructure Development Fund (UIDF) to support the creation of urban infrastructure in Tier-2 and Tier-3 cities. This fund utilizes the shortfall in priority sector lending and is aimed at providing financial stability for improving basic urban services.

About UIDF

• Establishment: Created using funds from the shortfall in priority sector lending. Managed by the National Housing Bank (NHB).
• Purpose: To support public agencies in developing infrastructure in smaller urban centers (Tier-2 and Tier-3 cities).
• Provides financing for projects related to:

1. Sewerage and solid waste management.
2. Water supply and sanitation.
3. Construction and enhancement of drains and stormwater systems.

• Initial Corpus: The Fund was established with an initial corpus of ₹10,000 crore.
• Coverage: Currently includes 459 Tier-2 cities and 580 Tier-3 cities.

Key Features of UIDF

• Model and Management: Inspired by the Rural Infrastructure Development Fund (RIDF). States and Union Territories (UTs) are encouraged to align UIDF resources with grants from the 15th Finance Commission and other government schemes.
• Focus Areas: Aims to ensure stable financing for urban infrastructure projects. Encourages adoption of appropriate user charges to ensure financial sustainability.

UIDF Loan Details

• Interest Rates: Loans under UIDF are offered at Bank Rate minus 1.5%, making them cost-effective.
• Repayment Terms: Loans are to be repaid in five equal annual instalments over seven years, with a two-year moratorium. Quarterly interest payments are mandatory.

Significance

• Urban Development: Bridges the infrastructure gap in smaller cities, improving quality of life.
• State Support: Supplements state and local government efforts for sustainable urban growth.
• Economic Boost: Encourages urbanization and strengthens local economies.

Conclusion

The UIDF plays a crucial role in enhancing urban infrastructure in Tier-2 and Tier-3 cities by providing affordable and stable financing. It ensures equitable development across smaller cities while leveraging resources efficiently to meet the needs of growing urban populations.

EXERCISE CINBAX

TOPIC: (GS3) SEQURITY: THE HINDU

Exercise CINBAX is primarily a planning exercise focused on joint Counter Terrorism (CT) operations. The exercise will help in formulating and planning CT operations within the context of UN peacekeeping missions.

Main Areas of Focus:

• Intelligence, Surveillance, and Reconnaissance (ISR): Establishment of a Joint Training Task Force to improve coordination and effectiveness in CT operations.
• Cyber Warfare and Hybrid Warfare: The exercise will include discussions and planning related to modern warfare tactics, including cyber and hybrid threats.
• Information Operations and Logistics: Operational logistics, casualty management, and efficient coordination during HADR (Humanitarian Assistance and Disaster Relief) operations will also be covered.

Phases of Exercise CINBAX

• Phase I: Preparation and Orientation: Participants will be oriented and prepared for CT operations, especially in the context of UN peacekeeping missions.
• Phase II: Table Top Exercises: This phase will involve simulated exercises to plan and strategize CT operations.
• Phase III: Finalization of Plans and Review: The final phase will focus on refining the plans and conducting a summing-up session. This phase will demonstrate practical aspects of the theme-based training through discussions and tactical exercises.

Significance of Exercise CINBAX

• Enhancing Bilateral Cooperation: Exercise CINBAX serves as an opportunity to enhance trust, camaraderie, and interoperability between the Indian and Cambodian forces.
• Skill Building: The exercise helps both armies improve their capabilities in modern warfare techniques, focusing on cyber threats, logistics, and humanitarian assistance during operations.
• Promoting Peacekeeping Goals: It aligns with India’s efforts to contribute to global peacekeeping under the United Nations Charter, enhancing coordination between member countries for effective peacekeeping missions.

Conclusion

Exercise CINBAX marks an important step in fostering stronger military ties between India and Cambodia. It aims to enhance operational readiness, mutual understanding, and interoperability, particularly in counter-terrorism and peacekeeping operations. The exercise also emphasizes India’s push towards indigenous defence production, showcasing its growing capabilities in the defence sector.