19-December-2024-Daily-Current-Affairs

SECTION 6A OF THE CITIZENSHIP ACT

TOPIC: (GS2) INDIAN POLITY: THE HINDU

Section 6A of the Citizenship Act, introduced after the 1985 Assam Accord, offers a distinct path for migrants from East Pakistan to gain Indian citizenship. While upheld by the Supreme Court in 2024, it faces criticism for cultural, demographic, and constitutional concerns.

Background of Section 6A

Origin: Enacted to address migration from East Pakistan to Assam and its socio-political implications.

Provisions:

• Migrants before January 1, 1966: Granted Indian citizenship.
• Migrants between January 1, 1966, and March 25, 1971: Citizenship after 10 years of residence.
• Migrants post-March 25, 1971: Declared illegal and subject to deportation.

Key Issues with Section 6A

• Cultural and Linguistic Concerns: (Violation of Article 29) The influx has altered Assam’s demographic profile, threatening its cultural and linguistic identity.

• Demographic Shifts: 1951-2011: Bengali-speaking population increased by 36.36%, while Assamese-speaking population dropped by 30.18%.

• Temporal Unreasonableness: No defined timeline for applicability, leading to indefinite implementation. Even decades after the cut-off date, the law remains operational, losing relevance to current challenges.
• Implementation Challenges: The burden lies on the state to identify illegal migrants through referrals to foreigners’ tribunals.

Challenges:

• Lack of referral deadlines prolongs the process.
• Tribunals are overwhelmed with cases, leading to inefficiencies and delays.

Implications of the Supreme Court Ruling

• Contradictions: The Court acknowledged Assam’s unique burden of migration but dismissed cultural erosion concerns under Article 29.
• Overlooked Impact: Failed to recognize the long-term erosion of Assam’s cultural identity and distinctiveness.

Conclusion

Section 6A poses unresolved constitutional and cultural challenges, particularly its failure to safeguard Assam’s unique identity. Addressing its temporal and implementation flaws is crucial to mitigate its adverse impacts.

STRENGTHENING THE ROOTS OF AN AGRI-CARBON MARKET

TOPIC: (GS3) ENVIRONMENT: THE HINDU

The agri-carbon market offers a dual opportunity: combating climate change and providing additional income for farmers through sustainable agricultural practices. By leveraging carbon pricing and credits, this market can make Indian farming eco-friendlier and more profitable.

About Carbon Markets

Purpose: Carbon markets aim to reduce greenhouse gas (GHG) emissions through regulated or voluntary trading of carbon credits.

Types of Markets:

• Compliance Markets: Governed by national or international regulations, such as the UN, requiring companies to offset emissions by purchasing carbon credits or paying penalties.
• Voluntary Markets: Operate without regulation, enabling organizations to trade credits using mechanisms like Verra and the Gold Standard.

India’s Progress in Carbon Markets

• Milestones: India announced its compliance and voluntary carbon markets in 2023. Five agricultural carbon credit projects have been listed under Verra by NABARD, ICAR, and universities.
• Current Status: Over 50 projects targeting 1.6 million hectares aim to generate 4.7 million carbon credits annually. However, none are registered, meaning farmers have yet to receive payments.

Key Principles of Carbon Markets

• Additionality: Emission reductions must result solely from the adoption of new sustainable practices. Farmers already using such methods are not eligible for credits.
• Permanence: Benefits, such as soil carbon storage, must last long-term and not be reversed due to reverting to conventional practices.

Challenges in Indian Carbon Farming Projects

• Inclusion Issues: Marginalized communities and smallholders are underrepresented. Women constitute only 4% of participants. Non-marginalized groups dominate land ownership among carbon farmers.
• Implementation Gaps: 45% of farmers reported a lack of communication. 60% lacked training in sustainable practices. 28% abandoned sustainable methods within two years due to insufficient incentives.
• Payment Delays: 99% of farmers have not received carbon credit payments. Yield penalties and inadequate information exacerbate dissatisfaction.

Study Findings on Carbon Farming Practices

• Adoption of New Methods: Zero tillage, intercropping, reduced fertilizer use, and tree planting were introduced in some projects, meeting additionality criteria.
• Better Performance: Startups focusing solely on carbon credits showed better outcomes but lacked inclusivity compared to larger corporations.

Solutions for a Thriving Agri-Carbon Market

• Promote Social Inclusion: Offer higher prices for projects involving smallholders and marginalized communities. Encourage diversity and participation through targeted outreach.
• Enhance Support Systems: Regular training and effective communication with farmers. Timely and guaranteed payments to boost trust and participation.
• Collaborations for Better Implementation: Partner with national and international research organizations to design inclusive projects. Address yield penalties and maintain food security through region-specific interventions.
• Leverage Technology: Use advanced tools like drones, sensors, and satellite imagery for precise monitoring. Integrate digital solutions to streamline credit allocation and project tracking.

Conclusion

Building a robust agricultural carbon market in India requires collaborative efforts between policymakers, researchers, and private entities. By focusing on inclusivity, transparency, and timely rewards, the sector can unlock its potential to combat climate change and benefit farmers sustainably.

ENSURING RELIABILITY OF GENERIC MEDICINES IN INDIA

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU

Generic medicines are essential for affordable healthcare in India, especially given its diverse income groups. These drugs are cost-effective versions of branded medicines, offering similar therapeutic benefits. However, maintaining their quality is crucial to ensure their effectiveness and public trust.

Importance of Generic Medicines

• Affordable Healthcare: Generics reduce treatment costs, making healthcare accessible.
• Economic Impact: India produces affordable generics domestically and internationally due to low production costs.
• Out-of-pocket Expenses: In 2021-22, 39.4% of health expenditure in India was out-of-pocket.
• Savings through Initiatives: Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana, ₹5,600 crore worth of generics saved consumers ₹30,000 crore over a decade.

Challenges in Quality and Effectiveness

• Bioequivalence Issues: Generics are chemically similar to branded drugs but may differ in efficacy due to variations in inactive ingredients and manufacturing processes.
• Example: A study showed slower therapeutic effects of generic itraconazole compared to the branded version.
• Manufacturing Variations: Differences in excipients, tablet compression, and granulation methods affect drug absorption and stability. Rapid API release in generics can cause fluctuating drug levels, unlike sustained release in branded drugs.

• Bioequivalence Standards: Regulatory parameters allow a 80%-125% range, which may be inadequate for drugs with narrow therapeutic windows.
• Stability Concerns: Stability testing under diverse conditions, mandated in 2018, lacks consistent enforcement. Many older generics were not subject to these guidelines.

• Drug Impurity Levels: India’s pharmacopoeia permits higher impurity levels compared to international standards, affecting drug quality.

Recommendations

• Centralised Drug Regulation: Strengthen the Central Drugs Standard Control Organisation (CDSCO) and shift control from states to the central authority. Establish more drug-testing labs.
• Enhanced Stability Testing: Implement uniform protocols and reassess older approved generics for compliance.
• Stricter Quality Standards: Align impurity levels with international guidelines for improved drug safety.
• Regulatory Reforms: Overhaul the CDSCO to enhance inspection, enforcement, and safeguard patients from substandard drugs.

Conclusion

Generic medicines are vital for equitable healthcare access. However, ensuring their quality and safety is essential to sustain public trust. Centralised regulation, stricter quality checks, and robust implementation of stability protocols are necessary steps toward achieving this goal.

SOVEREIGN GOLD BOND SCHEME: CONCERNS OVER CONTINUATION

TOPIC: (GS3) ECONOMY: INDIAN EXPRESS

The Sovereign Gold Bond (SGB) scheme, introduced as an alternative to physical gold, offers safety, returns, and flexibility. However, the government is considering discontinuing it due to high costs and reduced relevance.

Features of the Sovereign Gold Bond Scheme

• Objective: Encourage gold investments without the risks of storing physical gold.
• Issuer: Bonds are issued by the Reserve Bank of India (RBI) on behalf of the government.
• Structure: Each bond represents one gram of gold, with an annual interest of 2.5%.
• Benefits:
  • Redeemable in Indian Rupees based on the average gold price (999 purity) of the last three business days.
  • Market-value protection of gold at maturity.
  • Interest is semi-annual and paid along with principal upon maturity.
• Tenor: Eight years, with early redemption allowed after five years.

Why the Scheme is Under Review

• High Cost of Financing: Managing fiscal deficits through SGBs is expensive. Disparity between benefits to investors and the cost incurred by the government.
• Reduced Need: Budget 2024-25 cut the import duty on gold, boosting demand for the metal. SGBs are considered investment tools, not social welfare measures.
• Decline in Issuances: Annual tranches reduced from 10 to 2. Gross issuance targets reduced from ₹29,638 crore (February 2024) to ₹18,500 crore (July 2024).
• Performance Metrics: Early issuances like Series I (2016) saw returns of more than double the initial investment. Series II provided a 126.4% return over eight years, excluding interest. While returns are attractive, they do not justify the cost to the government.

Government’s Perspective

• Gold Duty Cuts: A reduction from 15% to 6% in July 2024 lowered gold prices and increased demand, making SGBs less critical.
• Premature Redemptions: Bonds from 2017-2020 are eligible for redemption, signalling a shift away from fresh issuances.
• Focus on Prioritization: The scheme’s limited public benefit is misaligned with its fiscal impact.

Conclusion

The Sovereign Gold Bond scheme, despite its advantages, faces challenges due to high costs and changing priorities. While it has provided significant returns to investors, its continuation is under review to streamline fiscal strategies and focus on more impactful initiatives.

IMPACT OF THE ‘BLOB’ MARINE HEAT WAVE ON SEABIRDS

TOPIC: (GS3) ENVIRONMENT: INDIAN EXPRESS

The “Blob,” an unprecedented marine heat wave, struck the northeast Pacific Ocean from 2014 to 2016, drastically altering marine ecosystems. This event caused a massive decline in seabird populations, particularly common murres, marking one of the largest wildlife mortality events recorded in modern times.

What Was the ‘Blob’?

• A marine heat wave that significantly increased ocean temperatures. Lasted nearly two years, starting in late 2014.
• Originated in the northeast Pacific, disrupting ecological balance.

Impact on Ecosystems

• Reduced phytoplankton populations, essential for marine food chains.
• Decreased forage fish availability, the primary food source for common murres.

Seabird Mortality

• Around 4 million common murres perished, primarily due to starvation.
• Nearly half of the region’s murres died in a single winter.
• An estimated 62,000 carcasses washed ashore from Alaska to California.

Findings from Research

• Data from 13 seabird colonies between 1995 and 2022 showed a severe decline. Murre colonies shrank to a quarter of their previous size in some areas.
• Researchers concluded that this is the largest recorded die-off of non-fish vertebrates in modern history.

Broader Impacts

• Snow crab populations in the Bering Sea also suffered significant losses.
• The heat wave highlighted the vulnerability of marine life to climatic shifts.

Long-Term Consequences

• Population Recovery Challenges: Seven years after the event, murre populations have not rebounded. This suggests lasting ecological changes preventing recovery.
• Future Risks: Climate change could increase the frequency and intensity of marine heat waves. Vulnerable species may face heightened risks in the coming years.

Conservation Efforts

• Focus on mitigating additional stressors on seabirds, such as invasive predators.
• Emphasize conservation strategies to bolster resilience against future climatic changes.

Conclusion

The “Blob” marine heat wave illustrates the catastrophic impacts of rapid climatic changes on marine ecosystems. It underscores the urgent need for conservation measures to protect vulnerable species and ecosystems amid increasing climate variability.

REIMPOSITION OF PROTECTED AREA REGIME IN MANIPUR, MIZORAM, AND NAGALAND

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Union Home Ministry has reinstated the Protected Area Regime (PAR) in the northeastern states of Manipur, Mizoram, and Nagaland. This move aims to monitor the movement of foreigners due to security concerns related to the influx of individuals from neighbouring countries.

Protected Area Regime (PAR)

• Governed under the Foreigners (Protected Areas) Order, 1958.
• Requires foreigners to obtain prior permission and Protected Area Permits (PAP) to visit specific regions.
• The regime restricts foreign access to areas considered sensitive due to strategic or security reasons.

Reasons for Reimposition

• Growing security concerns stemming from cross-border influx.
• Increased monitoring of foreign visitors in these border states.
• Ensures better control over foreign presence in sensitive regions.

Relaxation and Reversal

• PAR was relaxed in 2010 for promoting tourism and extended periodically until 2027.
• Recent developments led to the withdrawal of relaxation, reimposing the regime across the states.

Implementation Guidelines

• Foreigners can only visit protected areas for extraordinary reasons.
• Permissions must align with government regulations under the Foreigners (Protected Areas) Order, 1958.

State Government Statements

• Manipur’s Position: Confirmed the reimposition of PAR in the state. Declared enhanced monitoring of foreign visitors. Highlighted the non-recognition of the “Kuki-Zo Council” and its alleged external origins.
• Response to Media and Unverified Groups: Urged media to avoid publicizing claims from unauthorized organizations. Requested the central government to disregard statements from unverified entities.
• Security Alert: A new group linked to the Kuki-Zo community issued warnings to the Chief Minister of Manipur. Highlighted tensions between various communities in the region.

Implications

• Enhanced Security: Strengthened control over foreign activities to address security concerns.
• Restricted Tourism: Withdrawal of tourism-friendly policies in the three states.
• Community Tensions: Emerging challenges in maintaining peace among regional communities.

INNER LINE PERMIT (ILP)

An ILP is a travel document issued by the government that allows Indian citizens to visit protected areas.

• Where is it required? It is required for visiting certain areas of Arunachal Pradesh, Nagaland, and Manipur. The ILP is issued to prevent the influx of non-local people into areas that have cultural or ethnic sensitivities.
• How to obtain? ILPs can be obtained from state government offices, such as the Home Department of the state or through online applications.

Protected Area Permit (PAP)

• Who needs it? Foreign nationals require a PAP to visit certain protected areas in the North East, such as parts of Arunachal Pradesh and Sikkim.
• Where to apply? The PAP can be obtained from the Ministry of Home Affairs or the state government, depending on the specific area you wish to visit.
• What does it permit? The PAP is generally granted for tourism purposes but may have restrictions on the number of people allowed and specific areas they can visit.

Conclusion

The reinstatement of PAR reflects the government’s intent to prioritize national security in sensitive border areas. While this move curtails tourism, it underscores the need for vigilant monitoring and coordinated efforts to address regional challenges.

SECURING ENTRANCE EXAMS: EXPERT PANEL RECOMMENDATIONS

TOPIC: (GS2) INDIAN POLITY: INDIAN EXPRESS

The NEET-UG and UGC-NET paper leaks have raised questions about the National Testing Agency’s (NTA) operations. A seven-member panel, led by former ISRO chairman K. Radhakrishnan, has suggested measures to improve the transparency, fairness, and efficiency of national-level entrance exams.

Key Recommendations

Reassessing NTA’s Scope

• The panel noted the NTA’s extensive workload, including conducting recruitment and entrance exams.
• It recommended the agency focus on entrance exams until its resources and capacity are enhanced.
• Suggested restructuring includes appointing additional directors and domain-specific experts.

Involvement of Local Authorities

• Proposed collaboration with state and district officials similar to election management.
• Creation of coordination committees involving NTA, NIC, police, and Intelligence Bureau.
• Strategies to ensure secure exams, including guarding test centres with police or paramilitary support.

Enhancing Testing Centres

• Testing centres should be sealed and monitored like polling booths.
• CCTV surveillance of centres and appointment of a presiding officer for overall responsibility.

Improving the Testing Process

• Introduce multi-session testing over several days or weeks.
• For NEET-UG, adopt a multi-stage testing model similar to JEE Main and Advanced.
• Candidates to be assigned centres within their districts to prevent irregular allocations.
• Use mobile centres for remote areas.

Security in Question Paper Handling

• Develop multiple sets of question papers for pen-and-paper exams.
• Use encrypted question papers sent to secured servers at centres.
• Deliver question papers digitally to candidates, who can then record responses on OMR sheets.

Candidate Authentication

• Implement a “Digi-Exam” system to verify candidates’ identities through biometrics at the testing centres.

Long-Term Measures

• Standardize undergraduate entrance exams with uniform criteria and testing methods.
• Transition to computer-adaptive testing where questions vary based on a candidate’s performance.
• Establish a network of 400-500 computer-based testing centres, capable of conducting tests for 2-2.5 lakh candidates per session.
• Collaborate with Kendriya Vidyalayas and Navodaya Vidyalayas to develop digital infrastructure.

Conclusion

The panel’s recommendations aim to address systemic vulnerabilities in the current examination process while enhancing security, fairness, and efficiency in national-level exams. These measures will reduce dependency on outsourced services and ensure reliable exam management.

BANKS FACE RISING BAD LOANS IN PERSONAL LOANS AND CREDIT CARDS

TOPIC: (GS3) INDIAN ECONOMY: THE HINDU

Indian banks have made significant progress in reducing overall non-performing assets (NPAs), but a closer examination reveals a worrying trend—an increase in NPAs in the personal loan and credit card segments. This rise coincides with an increase in borrower debt levels, raising concerns about the sustainability of the progress in managing NPAs.

Increase in NPAs in Personal Loans and Credit Cards

• Personal Loan NPAs: NPAs in personal loans have increased by 51% from Rs 7,422 crore (0.93% of advances) in March 2023 to Rs 11,210 crore (1.16% of advances) by June 2024.
• Credit Card NPAs: NPAs in credit cards have surged by 136%, from Rs 2,404 crore (1.82% of advances) in March 2020 to Rs 5,679 crore (2.04% of advances) in June 2024.

Context of Overall NPA Reduction

• Despite the rise in personal loan and credit card NPAs, banks have successfully reduced overall gross NPAs from Rs 6.97 lakh crore (5.89% of advances) in March 2022 to Rs 4.56 lakh crore (2.79% of advances) by March 2024.

Nature of Personal Loans and Credit Cards

• Unsecured Loans: Both personal loans and credit card dues are unsecured and carry high interest rates. NPAs arise when a borrower’s loan payments, either principal or interest, become overdue by more than 90 days.
• High-Interest Rates: Banks charge high interest rates of 42-46% annually for credit card defaults, which can lead to a significant rise in debt for consumers.

Impact of RBI Measures

• What is Risk Weight? Risk weight refers to the percentage of a loan or credit exposure that banks must hold as capital in case of losses. The higher the risk weight, the more capital banks need to hold against potential losses.

Purpose of the Increase:

• Addressing Rising Risks: As the use of consumer credit, especially credit cards, has been increasing rapidly, this move aims to mitigate the rising risks associated with defaults or delayed payments.
• Preventing Financial Stress: With more people borrowing, there’s an increased chance of defaults, so increasing the risk weight ensures banks have adequate capital buffers to absorb potential losses.

• Increased Risk Weight: In November 2023, the RBI increased the risk weight on consumer credit and credit card receivables by 25%, to curb risk in these segments.
• Slowing Consumer Credit Growth: The RBI’s decision has slowed the growth of consumer credit, particularly in personal loans and credit cards.

Rising Debt and Growing Credit Card Usage

• Credit Card Usage: Credit card transactions have increased significantly, rising from Rs 6.30 lakh crore in March 2021 to Rs 18.31 lakh crore in March 2024.
• Increased Credit Card Issuance: The number of credit cards issued has grown to 10.61 crore by September 2024, up from 9.3 crore in September 2023.
• Outstanding Amount: Credit card outstanding debt reached Rs 281,392 crore in October 2024, up from Rs 249,635 crore in 2022.

What is NPA (Non-Performing Asset)?

• An NPA is a loan or advance where the borrower has failed to make repayments (interest or principal) for more than 90 days.

Types of NPAs:

• Sub-standard assets: Loans overdue for more than 90 days but less than 12 months.
• Doubtful assets: Loans overdue for more than 12 months.
• Loss assets: Loans where the bank considers them uncollectible, and there’s no realistic recovery.

Impact on Banks:

• NPAs affect a bank’s financial health, as they reduce profitability and affect capital adequacy ratios.
• Banks need to set aside provisions for NPAs, which reduces available funds for other loans.

Causes:

• Poor Credit Assessment: When banks lend to borrowers who cannot repay.
• Economic downturns: When businesses or individuals face financial challenges.
• Increased Defaults: Often due to over-leveraging or loss of income by borrowers.

Effects:

• Liquidity Issues: A rise in NPAs affects the bank’s liquidity and its ability to lend to other borrowers.
• Interest Rate Hikes: To compensate for NPAs, banks may increase interest rates, affecting borrowers.

Conclusion

The rising NPAs in personal loans and credit cards, along with increasing borrower debt, pose a challenge to the banking sector’s efforts to control bad loans. It highlights the need for responsible lending and financial literacy to prevent customers from falling into debt traps.