06-December-2024-Daily-Current-Affairs

STATES AND THE CHALLENGES BEFORE THE FINANCE COMMISSION

TOPIC: (GS3) ECONOMY: THE HINDU

The Sixteenth Finance Commission, chaired by Arvind Panagariya, is tasked with addressing India’s fiscal challenges and redefining the financial relationship between the Union and the States.

Opportunities from Global Changes

• Emerging trends like “friendshoring” and “reshoring” are reshaping global trade and investments.
• These trends offer opportunities for growth in States like Tamil Nadu, which require balanced resource allocation to harness their economic potential.
• The Commission’s challenge lies in ensuring equity in resource distribution while fostering growth in progressive States.

Issues with Vertical and Horizontal Devolution

• Vertical Devolution: Historically, the Finance Commissions increased States’ shares in the divisible tax pool for equitable distribution.

• The 15th Finance Commission allocated 41% to States, but the effective devolution stood at only 33.16%, largely due to the rising use of cess and surcharges by the Union.

• Horizontal Devolution: Redistribution policies aimed at less-developed States have shown limited results in driving real growth.

• A more balanced approach is necessary to expand the overall economic pie while fairly distributing resources.

Recommendations for Resource Allocation

• Increasing States’ Share: Propose 50% devolution of central taxes to States, allowing them greater autonomy in planning and implementing schemes.

• Ensure adequate funding for centrally sponsored schemes to reduce the financial burden on States.

• Incentivizing Performing States: Support high-performing States to maintain their growth momentum, enabling them to drive national economic progress.

• Adopt a resource allocation strategy that balances support for less-developed States with incentives for progressive ones.

Challenges for Progressive States

• Demographic Changes: States like Tamil Nadu face a higher median age, which reduces consumption-based tax revenues while increasing costs related to aging populations. Such States risk falling into the “middle-income trap”, where growth slows before achieving wealth.
• Urbanization: Tamil Nadu’s rapid urbanization (57.30% by 2031) demands significant investments in infrastructure. Resources must be allocated to manage urban growth and ensure sustainable development.

Conclusion

The Finance Commission’s mandate extends beyond fiscal decisions—it shapes India’s long-term economic vision. By addressing the needs of less-developed and high-performing States, the Commission can enable every region to contribute to and benefit from national progress. Its focus on inclusive growth, urbanization challenges, and climate resilience will determine India’s path to becoming a global economic leader.

INDIA-CHINA BORDER DISPUTES

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

The ongoing tensions between India and China along the Line of Actual Control (LAC) have been a significant concern since the Chinese incursions in 2020 and the deadly Galwan Valley clashes. While these efforts are positive, they highlight the need for sustained and intensified dialogue to resolve disputes and restore trust.

Recent Developments in Negotiations

Government’s Updates

• External Affairs Minister S. Jaishankar and Foreign Secretary Vikram Misri shared updates on India-China talks in Parliament.
• Statements focused on India’s position that normal relations depend on resolving LAC tensions.

Engagement Mechanisms

• 17 meetings of the Working Mechanism for Consultation and Coordination (WMCC) on Border Affairs.
• 21 rounds of Senior Commanders’ meetings and several high-level political and military discussions.

Progress on Disengagement

• Disengagement completed at key friction points such as Pangong Tso, Gogra, and Hot Springs.
• “Temporary buffer zones” have been created, and patrol resumption is underway in Depsang and Demchok.

Key Concerns and Challenges

• Casus Belli and Lack of Clarity: The government has not clarified the reasons behind China’s actions or the timeline for returning to the 2020 status quo.
• Territorial Integrity: The statements emphasized “national security” but lacked explicit reference to protecting India’s “territorial integrity.”
• Lessons from Past Engagements: Despite nearly 20 Modi-Xi meetings before 2020, trust was broken by Chinese actions, underscoring that diplomacy alone does not guarantee peace.

Way Forward

• Clear Understanding of the LAC: Expedite efforts to define and demarcate the boundary to prevent future conflicts.
• Continuous and Intense Engagement: Maintain ongoing dialogue and military coordination for de-escalation and de-induction of troops.
• Building Transparency: Keep the public informed about progress and challenges in resolving border tensions to build trust.

Conclusion

Resolving India-China border disputes requires a balanced approach combining transparency, intense negotiations, and strategic preparedness. While disengagement efforts are ongoing, long-term peace will depend on demarcating boundaries and fostering mutual trust.

DEREGULATION AND ECONOMIC OUTLOOK

TOPIC: (GS3) ECONOMY: INDIAN EXPRESS

Chief Economic Advisor (CEA) V. Anantha Nageswaran highlighted deregulation as a major theme for the upcoming Economic Survey 2024-25, set to accompany the FY26 Budget.

Key Themes from the Economic Survey

Deregulation as a Priority

• Deregulation, or reducing excessive regulations, will be a central focus in the 2024-25 Economic Survey.
• Specific reforms aim to address labour laws and sectoral restrictions, including reducing occupations deemed unsafe for women.

Encouraging Female Workforce Participation

• Removing gender-based restrictions in 118 occupations could boost women’s participation in the workforce.
• The focus will be on creating policies that enhance opportunities for women, especially at the state and local levels.

MSMEs and Economic Growth

• MSMEs are critical to increasing the manufacturing sector’s share in GDP to 25% or more.
• India can draw lessons from Germany and Switzerland to support MSMEs in scaling up from micro to medium-sized enterprises.
• Avoiding over-reliance on incentives for small-scale enterprises is essential to drive growth.

Economic Growth Outlook

GDP Growth Projections

• Growth of 5-7% for FY25 remains feasible despite a slowdown in the second quarter of FY24 (5.4%).
• The economy needs a 7% growth rate in the remaining two quarters to meet annual targets.

Labor Market Challenges

• Post-COVID trends show increased informalization, with more contractual hiring than regular employment.
• Wage growth for contractual employees has lagged behind inflation, reducing disposable income and consumption.
• Corporates need to adjust wage structures to sustain consumption and savings growth.

Policy Recommendations

• Labor and Wage Reforms: Address wage disparities to prevent consumption from stagnating and promote economic stability.
• Support for MSMEs: Create policies to enable MSMEs to expand and adopt a balance between capital-intensive and labour-intensive growth.
• Sustained Economic Reforms: Focus on deregulation across sectors to reduce barriers and enhance productivity.

Conclusion

India’s economic growth story remains intact despite short-term challenges. The emphasis on deregulation, balanced development, and labour reforms will be key to sustaining momentum and achieving long-term growth targets.

PROSPECTS AND CONCERNS FOR RABI CROP 2024-25

TOPIC: (GS3) AGRICULTURE: THE HINDU

The 2024-25 rabi crop season shows potential for a strong harvest due to favourable monsoon rains and predictions of an extended winter influenced by La Niña. However, challenges like delayed sowing due to high October temperatures and shortages of di-ammonium phosphate (DAP) fertilizer have impacted the start of the season.

Key Concerns

Delayed Planting

• Crops such as wheat, mustard, chana (chickpea), and masoor (red lentil) faced delayed sowing due to abnormally high temperatures in October.
• Temperatures in October 2024 were significantly higher than the average, particularly in Northwest and Central India, making it the hottest October since 1901.
• For crops like jeera (cumin), mustard, and potato, delayed sowing affected germination and early growth.

Fertilizer Shortages

• DAP fertilizer, essential for initial crop growth, witnessed shortages. Farmers faced delays in sowing or were forced to use alternative fertilizers with lower phosphorus content.

• Long queues and protests occurred in some regions due to insufficient supplies.

• Alternative fertilizers like complex blends and single super phosphate (SSP) may not provide optimal nutrients for crop growth.

Specific Crop Challenges

• Potato: High temperatures reduced tuber formation.
• Mustard: Late sowing and bacterial infestations caused stem wilting in some areas.
• Jeera: Delayed sowing led to poor germination.

Good Monsoon and Soil Moisture

• Surplus monsoon rainfall filled reservoirs to 86.7% of their full capacity by November 1, significantly higher than last year’s 70.5%.
• Groundwater recharge from monsoon rains provides an incentive for aggressive sowing.

Extended Winter from La Niña

• A La Niña event is expected to bring colder-than-normal winters, which could benefit late-sown crops.
• Extended cool conditions will aid wheat, enabling it to avoid heat stress during the critical grain-filling stage in March.

Food Inflation and Crop Prices

• Vegetable Inflation: October food inflation was high at 10.9%, primarily driven by vegetables like onions. Prices have moderated due to improving supplies, especially winter vegetables like carrots, radishes, and beans. Potatoes, however, may see higher prices due to reduced tuber yield.
• Pulses: Harvesting of pulses like arhar (pigeon pea) and milled urad and moong dal in Karnataka and Maharashtra is expected to reduce prices.

Wheat and Edible Oils

• Wheat: Government stocks are at a critical level. The import duty on wheat might be reduced to manage supply if domestic production is uncertain.
• Edible Oils: Prices of imported oils like palm and soybean are rising due to international factors, including Indonesia’s policy to increase palm oil blending in diesel and higher export taxes.

Challenges for the Rabi Season

• Temperature Variability: High October temperatures delayed planting, affecting the optimal sowing window for crops like mustard and potato. Recovery from delayed sowing may still face yield challenges.
• Fertilizer Dependence: Insufficient DAP availability forced farmers to adopt alternative solutions, which may not provide the same growth benefits.
• Global Market Impacts: Rising international prices for edible oils and wheat may influence domestic inflation and agricultural strategies.

Outlook for Rabi Crop

• Bumper Harvest Potential: Favourable factors like surplus water in reservoirs, adequate soil moisture, and an extended winter raise hopes for a strong rabi harvest. Crops like wheat, chana, and masoor are showing recovery in sown area.
• Concerns to Address: Managing fertilizer supplies remains critical. Timely government interventions, like easing import duties or ensuring adequate fertilizer distribution, are needed to support farmers.
• Inflation Moderation: Winter vegetable arrivals and pulse harvests will likely help reduce food inflation, while wheat and oilseed supplies require close monitoring.

Conclusion

The 2024-25 rabi season holds promise for a robust harvest due to favourable weather and water availability. However, challenges like delayed sowing and fertilizer shortages need immediate attention to fully capitalize on these positive conditions. Government support and timely interventions will be key to ensuring agricultural stability and food price moderation.

TUBERCULOSIS AND ITS IMPACT ON MENTAL HEALTH

TOPIC: (GS3) HEALTH: THE HINDU

Tuberculosis (TB) is not only a physical health challenge but also a significant mental health issue. Stigma surrounding TB due to its contagious nature, association with poverty, and misconceptions, impacts the mental well-being of patients.

Impact of TB on Mental Health

Stigma and Its Effects

• TB is often associated with poverty and unhealthy habits, leading to social and self-stigma.
• Patients face discrimination from families, communities, and even the healthcare system.
• This stigma results in feelings of despair, hopelessness, and impaired decision-making.

Physical and Emotional Toll

• Long-term treatment and severe side effects, including changes in physical appearance, lead to loss of confidence.
• Mental health challenges like depression are prevalent; studies show up to 84% of TB patients suffer from depression.

Link Between TB and Mental Illness

Bidirectional Relationship

• TB-related stigma and prolonged treatment impact mental health.
• Mental health disorders like depression weaken the immune system, increasing susceptibility to TB.
• Addictions linked to mental health issues (alcohol, tobacco, narcotics) further elevate TB risk.

Data Insights

• India has a significant population with mental health disorders, making them a high-risk group for TB.
• Mental health disorders in TB patients also lead to lower treatment adherence and poorer outcomes.

Policy Recommendations

Screening and Support

• Include mental health screening as part of TB care, similar to diabetes and HIV screenings.
• Use simple, self-administered questionnaires or community health workers for mental health assessments.
• Provide psychological support during TB treatment to ease stress and enhance adherence.

Technology-Driven Solutions

• Leverage digital platforms and smartphone apps for therapies like cognitive behavioral therapy.
• Promote remote mental health support for patients in underserved areas.

Community Engagement

• Establish community-based support groups to destigmatize TB and mental health issues.
• Involve communities in policy-making and program implementation.

Specialist Referrals

• Develop pathways for early referral to psychiatrists for severe cases.
• Address the shortage of mental health professionals by training more psychiatrists.

Conclusion

To eliminate TB, India must address the mental health challenges associated with it. An integrated approach, combining mental health care and TB treatment, is vital for achieving better outcomes and improving the quality of life for patients.

SCHEDULED CASTES AND SCHEDULED TRIBES (PREVENTION OF ATROCITIES) ACT, 1989

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989, aims to safeguard SC and ST communities from atrocities and ensure their dignity. It empowers authorities to penalize offenders and provide relief to victims.

Recent data presented in the Lok Sabha highlights that increased awareness and training of police personnel have contributed to more cases being registered under the Act.

Objectives

• Prevent atrocities against Scheduled Castes (SCs) and Scheduled Tribes (STs) by non-SC/ST individuals.
• Provide stringent punishments for crimes targeting SCs and STs.
• Empower the Central Government to frame rules for effective implementation.

Scope of Offences

• The Act includes 37 offences such as denial of rights, abuse of the legal system, and actions that undermine the dignity of SC/ST individuals.
• It does not cover crimes committed between members of the SC and ST communities.

Provisions for Implementation

Investigation

• Only a Deputy Superintendent of Police (DSP) or higher-ranking officer can investigate offences under this Act.
• Investigations must be completed within 30 days, with reports submitted to the state police director.

Special Courts

• States are required to establish exclusive Special Courts for speedy trials, in consultation with the Chief Justice of the High Court.
• Public Prosecutors with a minimum of seven years of legal experience are appointed to handle cases in these courts.

Punishments

• Minimum imprisonment ranges from six months to one year, with a maximum penalty extending to life imprisonment or death, depending on the offence.
• Neglect of duties by public servants can result in imprisonment of up to six months under Section 4.

Immediate Relief

• District or Sub-Divisional Magistrates must provide victims and their families with immediate relief, including essentials like food, shelter, medical care, and transportation, as per the 1995 Rules.

Conclusion

The Act emphasizes protecting SC/ST communities from atrocities, ensuring justice through dedicated systems, and offering immediate relief to victims. Its effective enforcement is crucial for upholding the rights and dignity of these marginalized groups.

PM SURYA GHAR MUFT BIJLI YOJANA

TOPIC: (GS3) ECONOMY: THE HINDU

The PM Surya Ghar Muft Bijli Yojana, launched on February 15, 2024, aims to provide free electricity to households in India by promoting solar energy. Parliament recently reported 1.45 crore registrations under the scheme, with 6.34 lakh installations completed.

Key Features

• Objective: Provide free electricity to households by encouraging solar rooftop installations.
• Subsidy: Up to 40% subsidy is offered on the cost of solar panels. Beneficiaries can save up to ₹18,000 annually with free electricity for up to 300 units per month.
• Budget and Duration: Scheme outlay: ₹75,021 crore. Implementation timeline: Until FY 2026-27.
• Government Savings: Expected to save ₹75,000 crore annually on electricity costs.
• Environmental Benefits: Promotes renewable energy use and reduces carbon emissions.

Eligibility Criteria

• Must be an Indian citizen.
• Own a house with a suitable roof for solar panel installation.
• Have a valid electricity connection.
• Must not have availed any other solar panel subsidy.

Role of DISCOMs

• State Implementation Agencies (SIAs): Facilitate net meters, inspections, and installation of solar panels.
• Incentives for DISCOMs: DISCOMs receive rewards for installing additional solar rooftop capacity beyond

NANOBUBBLE TECHNOLOGY

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: INDIAN EXPRESS

Nanobubble technology is an innovative approach for cleaning and purifying water, recently launched at the National Zoological Park, Delhi, by the Union Minister of State for Forest, Environment, and Climate Change.

About Nanobubbles

• Size: They are 70–120 nanometers in size, around 2500 times smaller than a grain of salt.
• Formation: Nanobubbles can be created using any gas and injected into any liquid.
• Applications: Used in water treatment, agriculture, aquaculture, food processing, and industrial sectors.

Key Properties

• High Surface Area: Their large surface area enhances gas transfer efficiency.
• Brownian Motion: Nanobubbles stay suspended in water for long periods, ensuring even oxygen distribution.
• Oxygen Transfer Efficiency: Approximately 90%, significantly higher than other methods.
• Surface Charge: Their negative charge aids in better separation of impurities in water treatment processes.

Benefits

• Water Treatment: Removes organic pollutants and bacteria.
• Agriculture and Aquaculture: Boosts plant and aquatic health and reduces chemical usage.
• Efficient Cleaning: Reaches pores and crevices, removing tough grime.
• Industrial Use: Improves oil and gas recovery efficiency.
• Health Applications: Enhances absorption of skincare products.

Nanobubbles offer sustainable solutions for multiple sectors, promoting environmental and economic benefits.