06-February-2025-Daily-Current-Affairs

TURNING POINT FOR INNOVATION IN INDIA

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU

India is shifting its science policy by channelling public funds into private universities and firms for advanced research. This approach aims to enhance innovation, increase economic competitiveness, and ensure better utilization of taxpayer money.

The Evolution of Science Policy in India

• Initially, India’s innovation ecosystem was state-driven, with institutions like TIFR and BARC.
• Government-led research delivered success, such as the 1974 nuclear test.
• Over time, policymakers recognized the need to involve private firms and universities for broader scientific advancement.

International Models of Research Funding

• France: Government funds defense research, but private firms execute it.
• United States: NASA outsources 80% of its budget to private firms and universities, enhancing efficiency.
• China: Innovations like DeepSeek were developed in the private sector, showcasing the power of industry-led research.

Advantages of Shifting Public Funds to Private Research

• Efficiency & Expertise: Private firms have a direct interest in their research and execute projects with better precision.
• Diverse Approaches: Multiple firms can work on the same problem with different strategies, reducing risk.
• Economic Growth: Knowledge generated by private firms contributes to industrial development.

Recent Initiatives Supporting Private Research

• Anusandhan National Research Foundation (ANRF): Allocates ₹2,800 crore annually to private research initiatives.
• Budget 2025 Allocation: ₹20,000 crore has been set aside to promote private-sector-driven research and innovation.
• ISRO Collaboration: Private firms will manufacture launch vehicles, integrating taxpayer-funded innovation into industry.
• MEITY’s GPU Initiative: 18,693 GPUs have been procured to enhance AI research in private firms at affordable rates.

Challenges in Implementation

• Research funding is complex and cannot be audited like standard procurement.
• The need for legal and administrative reforms to ensure transparent contracts.
• Balancing accountability with flexibility to encourage risk-taking in research.

Conclusion

India’s transition from state-led research to private-sector-driven innovation marks a crucial shift in science policy. This new approach can drive economic growth, foster global competitiveness, and optimize public spending for innovation.

INDIA’S LEADERSHIP IN GLOBAL HEALTH CARE

TOPIC: (GS3) HEALTH: THE HINDU

The Union Budget 2025-26 lays a strong foundation for India to establish itself as a global leader in health care. Key investments in medical education, infrastructure, and innovation will enhance accessibility and quality of care while promoting global collaborations.

Strengthening Health Care Infrastructure

Increased Budget Allocation:

• ₹90,958 crore allocated to the health sector for FY26.
• Focus on expanding medical education, research, and infrastructure.

Medical Education Expansion:

• 75,000 new medical seats to be added over five years.
• 10,000 additional seats to be introduced in FY26.
• Strengthening the availability of skilled health professionals.

Enhanced Cancer Treatment Facilities:

• Establishment of 200 daycare cancer centres in district hospitals.
• Improved access to specialized cancer care for early detection and treatment.

India’s Health Care Evolution

• Transition from limited infrastructure in the 1980s to a global leader in health care.
• Growth driven by public-private partnerships and policy reforms.

Global Health Initiatives:

• ‘Heal in India’: Positioning India as a leading destination for medical tourism.
• ‘Heal by India’: Training and deploying Indian medical professionals worldwide.
• Improved visa processes to facilitate medical travel.

Lowering Treatment Costs

• Customs Duty Exemptions: Removal of duties on 36 life-saving drugs, including cancer and rare disease medications. Reduction in treatment costs for critical illnesses.
• Patient Assistance Programs: 13 new programs to improve access to essential medicines for chronic conditions.

Role of Technology in Health Care

AI and Digital Health Advancements:

• National Centres of Excellence to drive research and innovation.
• Use of Artificial Intelligence in diagnostics, treatment, and medical research.

Public-Private Collaboration:

• Integration of technology in both private and government hospitals.
• Expansion of advanced treatments like Proton Therapy for cancer.

Way Forward

India’s Growing Role in Global Health:

• Transforming from a country struggling with medical access to a global health-care leader.
• Continued focus on innovation, medical education, and universal health care.

Future Roadmap:

• Strengthening health care policies and infrastructure.
• Leveraging technology to improve patient outcomes.
• Expanding access to affordable and high-quality medical services.

India is not only improving its own health-care system but also playing a key role in global health transformation.

SUPREME COURT DIRECTIVE ON SACRED GROVES

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Supreme Court of India recently directed Rajasthan’s Forest Department to map and classify sacred groves as ‘forests’ and notify them as ‘community reserves’ under the Wildlife Protection Act (WLPA), 1972.

Supreme Court’s December 18 Order

• Rajasthan’s Forest Department must map sacred groves using satellite and ground surveys.
• Classification of these groves as ‘forests’ and notification as ‘community reserves’ under WLPA.
• The decision conflicts with the FRA, which aimed to restore traditional community rights over forest lands.
• Rajasthan has around 25,000 sacred groves (orans, malvan, deo ghat, baugh) covering 6 lakh hectares.

T.N. Godavarman Case and ‘Forest Land’ Definition

• The T.N. Godavarman v. Union of India case (1996) expanded the definition of ‘forest land’.
• The Supreme Court ruled that ‘forest land’ includes both dictionary-defined forests and lands recorded as forests in government records, regardless of ownership.
• Rajasthan’s 2004 expert committee classified only groves meeting ‘deemed forest’ criteria (at least 5 hectares with 200 trees per hectare).
• The Supreme Court’s Central Empowered Committee (CEC) disagreed and called for a broader classification.
• In 2018, the apex court directed Rajasthan to implement the recommendations.

Significance of Sacred Groves for Communities

• Sacred groves are traditional forest patches protected by local communities through customs and taboos.
• India has an estimated 1-10 lakh sacred groves, the highest in the world.
• They have religious, cultural, ecological, and medicinal significance.
• Found in various states under different names like devara kadu (Karnataka), devban (Himachal Pradesh), kavu (Kerala), sarna (Jharkhand), etc.
• They help prevent natural disasters, support biodiversity, and maintain local ecological balance.

Community Reserves under WLPA

• Community reserves are protected areas introduced in the 2002 amendment to the WLPA.
• These areas are conserved by locals but overseen by the Forest Department.
• Offenses in community reserves include damaging boundaries, harming wildlife, littering, and setting fires.
• Management committees are formed with local representatives and forest officials.

Conflict with Forest Rights Act (FRA), 2006

• Under FRA, sacred groves are part of community forest resources managed by gram sabhas.
• Gram sabhas have the legal right to protect, conserve, and manage these forests.
• They also prevent activities harming cultural and natural heritage.
• The Supreme Court’s order could transfer control to the Forest Department, overriding community governance.

Conclusion

The Supreme Court’s directive aims to formalize the protection of sacred groves but challenges traditional conservation systems under FRA. It raises concerns about potential conflicts between legal frameworks and the cultural practices of local communities.

Practice Question:

1. Consider the following statements regarding Sacred Groves and Community Forests in India:

1. Sacred groves are patches of forest preserved due to religious and cultural beliefs, while community forests are managed collectively by local communities for ecological and economic benefits.
2. Sacred groves are legally protected under the Wildlife Protection Act, 1972, whereas community forests are governed by the Forest Rights Act, 2006.
3. Both sacred groves and community forests contribute to biodiversity conservation and local climate regulation.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2, and 3

Answer: D

Explanation:

• Sacred groves are traditionally protected forest patches due to religious and cultural beliefs, whereas community forests are collectively managed by local communities for sustainability.
• Many sacred groves are legally protected under the Wildlife Protection Act, 1972, and community forests come under the provisions of the Forest Rights Act, 2006.
• Both play a crucial role in conserving biodiversity, preserving native flora and fauna, and regulating local climate conditions.

THE RISE OF UPI DIGITAL PAYMENTS IN INDIA

TOPIC: (GS3) ECONOMY: THE HINDU

India has witnessed a significant increase in digital payments over the years, with UPI emerging as the dominant platform. The total value and volume of digital transactions have grown substantially, driven by the rapid adoption of mobile-based payment systems.

Growth of Digital Payments

• Digital transactions in India surged from ₹772 lakh crore in 2013 to ₹2,758 lakh crore in 2024.
• The volume of transactions increased from 222 crore to over 20,787 crore in the same period.
• Between 2018 and 2024, digital payments saw a 1.6 times rise in value and a 6.7 times surge in volume.

Role of UPI in Digital Transactions

• UPI integrates multiple bank accounts into a single mobile platform, making transactions seamless.
• The share of UPI in digital payments rose from 34% in 2019 to 83% in 2024.
• Between 2018 and 2024, UPI transactions grew 46 times from 375 crore to 17,221 crore.
• Other digital payment methods only doubled to 3,566 crore transactions in the same period.

Increase in UPI Transactions

• In 2019, UPI transactions stood at 1,078.75 crore, rising to 17,220.80 crore in 2024.
• The transaction value jumped from ₹18.37 lakh crore in 2019 to ₹246.83 lakh crore in 2024.

P2P vs. P2M Transactions

• Person-to-Merchant (P2M) transactions expanded at a faster rate than Person-to-Person (P2P) transactions.

Share of Digital Payment Methods in 2024

• UPI contributed over 80% of all digital transactions by volume.
• However, in terms of value, UPI accounted for only 30% of the total digital transaction value.

Conclusion

The rapid expansion of UPI has transformed India’s digital payment landscape, making transactions more convenient and boosting financial inclusion.

THE NEED TO EASE BANKING REGULATIONS

TOPIC: (GS3) ECONOMY: INDIAN EXPRESS

India’s economy is growing rapidly, and to support this expansion, a review of banking regulations is necessary. Easing banking rules can boost liquidity, encourage investments, and improve financial efficiency.

Importance of Banking Regulations Review

• India’s GDP is projected to rise from $3.7 trillion (2023-24) to $7 trillion (2030-31).
• To sustain this growth, investment must increase, requiring better financial intermediation.
• Corporate savings are not being invested effectively due to concerns over future demand and global uncertainties.

Challenges in Financial Liquidity

• Lack of Private Investment: Private firms are reluctant to invest their profits due to economic and geopolitical uncertainties.

• Investment-to-operating cash flow ratio for listed firms fell from 114% (2008-09) to 56% (2023-24).

• Limited Credit for MSMEs: While large corporations access funding through equity markets, bonds, and bank loans, MSMEs struggle with credit availability.
• Decline in Bank Deposits: Banks now receive only 40% of household savings, down from 50% earlier, as people prefer higher returns from mutual funds and pension schemes.

Regulatory Constraints on Banks

• High Pre-emption’s Reduce Lending Capacity: Banks must hold 26% of deposits in liquid assets (LCR) and 4% in Cash Reserve Ratio (CRR), limiting their ability to lend. They also maintain excess reserves to avoid regulatory breaches.
• LCR and SLR Overlap: While global practices focus on Liquidity Coverage Ratio (LCR), Indian banks must also meet Statutory Liquidity Ratio (SLR) requirements. This dual requirement limits liquidity and raises lending costs.

Issues in Government Liquidity Management

• Government Cash Surplus Held by RBI: Surplus funds are parked with the Reserve Bank of India (RBI), reducing overall liquidity in the banking system. This leads to large swings in liquidity availability.

Need to Revise Priority Sector Lending (PSL)

• Banks must allocate 40% of loans to priority sectors, but the framework is outdated.
• The structure should align with changes in GDP and new economic priorities.
• PSL pricing should reflect credit risk to prevent distortions in the lending system.

Modernizing Lending Practices

• Risk-Based Lending: Moving towards cash flow-based lending and risk-based pricing can help expand financial inclusion.
• Use of Technology for Supervision: Artificial Intelligence (AI) and tech-based oversight can enhance banking efficiency.

Concerns Over Credit Growth and Rupee Stability

• Credit Growth is Below Nominal GDP Growth: A comprehensive review of financial regulations is required to address credit supply gaps.
• Defending the Rupee Against Dollar Strength: Instead of reducing liquidity to support the rupee, a more strategic approach is needed. Excessive interventions result in an overvalued rupee without real benefits.

Enhancing Bank Profitability and Investment

• Banks Need to Generate Profits for Growth: Banks must raise capital through equity and debt markets. They should be allowed to price lending rates based on risk and operational costs.
• Rising Costs of Technology Investments: Global banks spend 9% of revenue on technology, while Indian banks allocate about 5%. Additional costs arise from social obligations, such as free UPI transactions.
• Bank Charges Need Rationalization: To maintain financial stability, banks must recover operational costs through reasonable fees.

Improving the Government Securities Market

• Despite being the third largest among emerging markets, India’s global bond share is only 3% compared to Indonesia’s 14.5%. Easing regulations can attract more international investments.
• Liquidity in the cash market is stable, but the derivatives market lacks depth.
• Regulators like IRDAI, PFRDA, and SEBI should encourage large investors to increase participation in derivatives along with cash instruments.

Conclusion

To ensure a stable and growth-oriented financial system, banking regulations should be revised to improve liquidity, enhance credit availability, and encourage private investment. A balanced approach, incorporating global best practices while addressing India’s unique economic needs, is essential for long-term economic expansion.

Practice Question:

1. Consider the following statements regarding UPI (Unified Payments Interface) and NPCI (National Payments Corporation of India):

1. UPI is a real-time payment system developed by NPCI to facilitate inter-bank transactions through mobile devices.
2. NPCI is responsible for developing and regulating UPI as well as the broader digital payments ecosystem in India.
3. UPI supports only domestic transactions and does not facilitate cross-border payments.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2, and 3

Answer: A

Explanation:

• UPI is a real-time payment system that enables instant inter-bank transfers via mobile devices, developed by NPCI.
• NPCI is the body that developed UPI and regulates the digital payments ecosystem in India, including the UPI infrastructure.
• UPI now supports cross-border payments through collaborations with international payment systems, allowing transactions from India to other countries and vice versa.

TRUMP’S PLAN FOR GAZA AND REGIONAL RESPONSES

TOPIC: (GS2) INTERNATIONAL RELATIONS: INDIAN EXPRESS

In a recent press conference, U.S. President Donald Trump made bold policy statements regarding Gaza, proposing U.S. control over the region and suggesting Palestinian resettlement in Jordan and Egypt. Additionally, he reinforced pressure on Iran by reimposing sanctions. These developments have sparked strong reactions from Middle Eastern nations.

Trump’s Vision for Gaza

• Proposal for Displacement: Trump suggested that Palestinians should leave Gaza, claiming that Jordan and Egypt would ultimately accept them despite their initial refusals.
• U.S. Control Over Gaza: He proposed that America would “own” Gaza and transform it into a prosperous region similar to a luxury tourist destination.
• Contradictions with Past Policies: This plan starkly differs from his 2020 “Peace to Prosperity” initiative, which envisioned a limited Palestinian state.
• Legal and Ethical Concerns: His proposal contradicts international laws that uphold Palestinian self-determination and could be seen as forced displacement.

Israel’s Perspective

• Support for Trump’s Plan: Israeli Prime Minister Benjamin Netanyahu welcomed Trump’s approach, viewing it as beneficial for settlement expansion.
• Impact on Ceasefire Talks: Israel remains committed to eliminating Hamas, which complicates negotiations for lasting peace in the region.

Why Jordan and Egypt Oppose Resettlement

Jordan’s Stance:

• Rejects any forced relocation of Palestinians, calling it a potential act of war.
• Faces economic challenges and already hosts over 2 million Palestinian refugees.
• Rising political influence of pro-Palestinian factions could destabilize the monarchy.

Egypt’s Concerns:

• Resisting pressure to accept displaced Palestinians to avoid political backlash.
• Fear that such a move could strengthen opposition groups like the Muslim Brotherhood.

Reimposing Sanctions on Iran

• Trump’s Renewed Pressure: Revoked previous easing of sanctions and reinstated “maximum pressure” policies against Iran.
• Gulf States Strengthening Ties with Iran: Saudi Arabia and UAE have recently improved relations with Iran, making U.S. sanctions less effective.

• Iran has engaged in military and trade cooperation with Gulf nations, shifting regional dynamics.

Conclusion

Trump’s approach to Gaza and Iran marks a significant shift in U.S. Middle East policy. While Israel Favors his plan, Arab nations strongly oppose Palestinian displacement. The growing regional ties with Iran may challenge the effectiveness of Trump’s renewed sanctions.

UNUSUAL WARMING AT THE NORTH POLE

TOPIC: (GS3) ENVIRONMENT: INDIAN EXPRESS

Recently, temperatures at the North Pole surged more than 20°C above normal, exceeding melting thresholds. This alarming event highlights the rapid warming of the Arctic, which is heating nearly four times faster than the global average.

Reasons for the Extreme Temperature Rise

Low-Pressure System Over Iceland

• A deep low-pressure system in Iceland allowed warm air from lower latitudes to move into the Arctic.
• This brought unusual heat to the region, despite being the peak of the polar winter.

Warmer Sea Surface Temperatures

• The northeast Atlantic recorded abnormally high sea surface temperatures.
• These warm waters intensified wind-driven warming, further increasing temperatures in the Arctic.

Why is the Arctic Warming Faster Than the Global Average?

Albedo Effect and Ice Melt

• Sea ice reflects sunlight, keeping the Arctic cool.
• As ice melts, more land and ocean are exposed, absorbing heat instead of reflecting it.
• This process accelerates warming and further ice loss.

Weak Convection in the Arctic

• In warmer regions, heat rises and mixes throughout the atmosphere.
• However, in the Arctic, weak convection prevents heat from spreading upward, trapping warmth near the surface.

Global Consequences of Arctic Warming

• Rising Sea Levels: Melting ice sheets contribute to higher ocean levels, increasing coastal flooding risks worldwide.
• Disruptions in Weather Patterns: Arctic warming influences global climate systems, leading to extreme weather events, including heatwaves and storms.

Conclusion

The Arctic acts as Earth’s cooling system, but its rapid warming poses serious global risks. Urgent climate action is necessary to slow down temperature rise and prevent further environmental damage.

DISCOVERY OF ICE AGE LANDFORMS IN THE NORTH SEA

TOPIC: (GS3) ENVIRONMENT: INDIAN EXPRESS

Scientists have found massive landforms beneath the North Sea, indicating that the region was once covered by a vast ice sheet during the middle of the last Ice Age. This discovery provides insights into past climate conditions and glacial movements.

About the North Sea

Geographical Features

• The North Sea is a shallow, semi-enclosed sea in Northwestern Europe.
• It is classified as a marginal sea of the Atlantic Ocean.

Connections to Other Water Bodies

• It links to the Atlantic Ocean through the Norwegian Sea in the north and the English Channel in the south.
• The Baltic Sea is connected via the Kattegat and Skagerrak straits in the east.

Bordering Countries

• Nations bordering the North Sea include the United Kingdom, Norway, Denmark, Germany, the Netherlands, Belgium, and France.

Size and Major Rivers

• The sea spans around 570,000 sq. km.
• Several major rivers drain into it, including the Thames, Rhine, Meuse, Scheldt, Humber, Elbe, Weser, Ems, and Forth.

Economic and Environmental Importance

• Major Ports: The North Sea is home to two of the world’s busiest ports—Hamburg (Germany) and Rotterdam (Netherlands).
• Fishing Industry: It serves as one of the most significant fishing zones globally, contributing to the economy of many European nations.

Conclusion

The discovery of deep-sea landforms offers crucial evidence of past ice sheets and climate shifts. Additionally, the North Sea remains an essential economic and environmental resource for Europe.