24-December-2024-Daily-Current-Affairs

INDIA’S RELIANCE ON CHINA FOR CRITICAL MINERALS

TOPIC: (GS3) ECONOMY: THE HINDU

Critical minerals are essential for a country’s economic growth and technological advancements. India, despite having identified 30 critical minerals vital for its development, is heavily reliant on imports, particularly from China. This reliance raises concerns about economic security and supply chain vulnerabilities.

China’s Dominance in Critical Minerals

• Vast Resources and Investments: China leads globally in mining and refining critical minerals, with reserves of 173 types of minerals. It has invested significantly in exploration, discovering large mineral deposits annually.
• Processing Leadership: Controls 87% of rare earth processing, 58% of lithium refining, and 68% of silicon processing. Strategic investments in global mining projects enhance its supply chain control.
• Export Restrictions: China strategically uses export controls on critical minerals, targeting semiconductors, batteries, and high-tech manufacturing industries. Examples include restrictions on gallium, germanium, and rare earth technologies.

India’s Dependency on Chinese Minerals

• High Dependence on Six Minerals: India relies on China for bismuth (85.6%), lithium (82%), silicon (76%), titanium (50.6%), tellurium (48.8%), and graphite (42.4%).

• These minerals are essential for industries like EV batteries, solar panels, aerospace, and pharmaceuticals.

• Limited Domestic Capabilities: Despite the discovery of 5.9 million tonnes of lithium in Jammu and Kashmir, India lacks the technology to extract lithium from its clay deposits.

Reasons for Import Dependency

• Structural Challenges: Deep-seated minerals require high-risk exploration and advanced technologies. Lack of incentives and policy support has deterred private investment.
• Inadequate Processing Infrastructure: Limited processing facilities hinder self-reliance in refining critical minerals.

Way Forward for India

• International Partnerships: Initiatives like the Minerals Security Partnership and Critical Raw Materials Club aim to diversify supply sources.

• KABIL, a joint venture of state-owned firms, focuses on securing overseas mineral assets.

• Strengthening Domestic Capacity: Investments in research through institutions like GSI and CSIR are ongoing. Promoting recycling and adopting circular economy practices to reduce dependency.
• Policy and Incentives: Production-linked incentives for mineral extraction and recycling are being introduced. Long-term investment and sustained efforts are necessary for reducing dependency on China.

CRITICAL MINERALS

Essential elements for modern technology, economy, or security, with a risk of supply disruption.

• Applications: Used in:
  • Mobile phones, computers, semiconductors, defence, and medical fields.
  • Low-emission technologies (electric vehicles, solar panels, etc.).
  • Common products like stainless steel and electronics.
• Examples: Antimony, Beryllium, Cobalt, Copper, Gallium, Lithium, etc.

Top Producers

• Chile, Indonesia, Congo, China, Australia, South Africa.

Critical Minerals in India

• India has identified 30 critical minerals, including Antimony, Beryllium, Cobalt, Copper, Gallium.

Conclusion

India’s reliance on China for critical minerals highlights the urgent need to build a self-sufficient ecosystem for mining, processing, and recycling. Strategic policies, international collaborations, and technological advancements will be crucial in achieving this goal.

THE GATT-IFICATION OF THE WORLD TRADE ORGANIZATION”

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

The World Trade Organization (WTO) plays a key role in managing global trade disputes through its multilateral system. However, its dispute resolution mechanism is now at a standstill due to the U.S. blocking the appointment of Appellate Body (AB) members.

The Appellate Body Impasse

• The WTO’s Appellate Body, crucial to its two-tier dispute settlement system, has been non-functional for five years.
• The U.S. has blocked appointments to the body since the Obama administration, escalating under Trump and continuing with Biden.
• Countries exploit this by appealing to the non-operational AB, stalling dispute resolution.

Larger Crisis of Relevance

• Beyond the Appellate Body, the WTO faces an existential crisis as it struggles to stay relevant in the global trade arena.
• The shift appears aimed at weakening the WTO, not just the AB.

WTO, Creation and Aspirations

• Established in 1995, the WTO introduced rules governing trade in goods, services, and intellectual property.
• Its binding dispute resolution system ensured compliance through penalties for non-adherence.
• It was seen as a rule-based multilateralism system, offering predictability in international trade.

Transition from GATT

• WTO succeeded the General Agreement on Tariffs and Trade (GATT), marking a shift from diplomacy-based trade to a legal framework.
• Nations willingly restricted their trade policies to conform to WTO rules.

Role of China

• China’s accession to the WTO in 2001 raised expectations of adopting free-market principles.
• Instead, the U.S. believes China exploited WTO rules while retaining its state-led industrial policies.

U.S. Response

• The U.S. accuses the WTO of constraining its ability to counter China’s policies effectively.
• Under Trump, tariffs on Chinese goods and threats of trade wars disregarded WTO norms.

Regime Shift

“GATTification” of WTO

• The WTO is moving back to GATT-like diplomacy where nations reclaim control over trade decisions.
• This marks a shift from the legal rigor of the 1995-2019 era to a more political approach.

Future of Global Trade

• The retreat from legal frameworks could lead to increased trade conflicts.
• Without a functional dispute resolution system, the rule-based global trade order is weakening.

Conclusion

The WTO’s challenges, especially the Appellate Body’s dysfunction, signal a retreat from its original vision. Nations appear to prefer political manoeuvring over legal frameworks, marking a return to pre-WTO dynamics.

REFORMING INDIA’S BUREAUCRACY

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Indian Administrative Service (IAS), often called the “steel frame” of India, plays a crucial role in governance. However, systemic inefficiencies such as politicisation, lack of specialisation, and outdated practices hinder its effectiveness.

Challenges in India’s Bureaucracy

Legacy Issues

• IAS, rooted in the colonial Indian Civil Service, became the backbone of governance post-Independence.
• Political interference, frequent transfers, and outdated personnel policies weaken its impact.

Politicisation

• Promotions and transfers are often influenced by political loyalty instead of merit.
• This demoralises officers and reduces their efficiency.

Lack of Specialisation

• Frequent departmental rotations prevent officers from gaining expertise in specific areas.
• This hampers policymaking and implementation in a complex governance environment.

Corruption and Inefficiency

• Bureaucratic delays and corruption affect policy outcomes.
• India’s moderate ranking on global governance indices reflects the need for administrative reforms.

Government Initiatives for Reform

Curbing Politicisation

• Efforts under Prime Minister Modi’s leadership aim to reduce arbitrary transfers and increase accountability.
• Critics, however, argue that centralised decision-making limits bureaucratic autonomy.

Lateral Entry

• Introduced to bring in domain experts from private sectors and other fields for senior roles.
• By 2023, 57 professionals were recruited, disrupting the traditional IAS dominance.
• Only 33% of Joint Secretaries now belong to the IAS, compared to near-total control earlier.

Second Administrative Reforms Commission (ARC)

• Recommendations include performance-based promotions, specialised training, and protection from arbitrary transfers.
• Despite its proposals, implementation has been limited.

Lessons from Global Models

International Examples

• A proposed U.S. initiative, the Department of Government Efficiency, focuses on reducing waste and improving accountability.
• A similar framework in India could identify inefficiencies and create data-driven decision-making processes.

Way Forward

• Focus on Merit: Recruitment and promotions must prioritise merit, specialisation, and measurable performance. Seniority-based progression should be replaced with performance-linked incentives.
• Safeguards Against Political Interference: Establish civil services boards to prevent arbitrary transfers. Strengthen accountability without compromising autonomy.
• Specialised Training: Invest in professional development to enhance domain knowledge.
• Data-Driven Governance: Develop robust data systems to monitor performance and inform policy decisions.

INDIAN CIVIL SERVICE (ICS):

• Establishment: The ICS was founded in 1858 when the British Crown took control of India, following the end of East India Company’s rule. The first exam was held in London in 1855.
• Early Composition: Initially, the ICS was predominantly an elite body of British citizens, with limited Indian participation. It had two divisions: the covenanted service for Europeans and the uncovenanted service for Indians.
• First Indian ICS Officer: Satyendranath Tagore became the first Indian to join the ICS in 1863.
• Indian Representation: Following the Montagu-Chelmsford Reforms of 1921, Indians were allowed to take the ICS exam within India, increasing Indian representation in the civil services.

Conclusion

Reforming India’s bureaucracy is critical for efficient governance and sustained economic growth. Implementing structural reforms will ensure the IAS adapts to modern challenges while preserving its foundational role in administration.

ENVISIONING INDIA AS A GLOBAL SKILL PROVIDER

TOPIC: (GS2) ECONOMY: THE HINDU

India has the potential to emerge as a global hub for skilled labour, with Prime Minister Modi highlighting its workforce’s role in international markets. However, challenges like fragmented policies and inadequate skill alignment hinder its progress.

Key Trends in Global Skill Migration

• Evolving Immigration Policies: Traditional migration hubs like the U.S., the U.K., and Canada, along with new destinations like Japan and South Korea, prioritize skill-based immigration to tackle aging populations, low fertility rates, and economic diversification.
• Global Skill Gaps: Demand for skilled workers is rising in sectors such as technology, healthcare, and infrastructure. Destination countries seek workers with advanced skills to address emerging challenges like digitalization.

Current Issues with India’s Migration Policy

• Lack of Comprehensive Policy Framework: India does not have a unified policy for international labour mobility, relying instead on fragmented initiatives like emigration clearances for low-skilled workers.
• Data Gaps: Existing data collection methods are inadequate, covering only low-skilled workers and missing insights on high-skilled migration.
• Bilateral Agreements: India’s agreements with other countries focus on areas like social security and welfare but lack consistent evaluation or alignment with a broader migration strategy.

The Way Forward

• Skill Mapping and Forecasting: India must identify skill requirements in key countries using methodologies like those employed by European vocational training organizations. Big data analysis of job vacancies can provide real-time insights.

• Aligning Skill Development: Enhance skill programs to meet global standards by:
• Introducing targeted curricula in training institutions.
• Customizing short-term training for specific countries.
• Aligning India’s skill qualification systems with those of destination countries.

• Leveraging Return Migration: Develop mechanisms to accredit skills acquired abroad to facilitate reintegration of returning migrants into India’s workforce.
• Establishing a Skill Information System: Create a centralized platform to collect and analyse data on skill trends, supporting evidence-based policymaking and fostering partnerships with destination countries.

Conclusion

India’s journey to becoming a global skill supplier requires robust policies, skill alignment with international standards, and effective data systems. By addressing existing gaps, India can strengthen its position as a key player in the global labour market.

REIMPOSITION OF PROTECTED AREA REGIME (PAR) IN MANIPUR, NAGALAND, AND MIZORAM

TOPIC: (GS3) SEQURITY: THE HINDU

The Ministry of Home Affairs (MHA) has reimposed the Protected Area Regime (PAR) in Manipur, Nagaland, and Mizoram. This move requires foreign nationals to obtain Protected Area Permits (PAP) before entering these states, reversing the previous relaxation of restrictions.

What is the Protected Area Regime (PAR)?

• Defined by the Foreigners (Protected Areas) Order, 1958: Restricts foreign nationals from entering protected areas without permits issued by the Central government or authorized officials. Specifies details like the point of entry, residence location, and duration of stay.
• Areas Under PAR: Entire states of Manipur, Mizoram, Nagaland, and parts of Himachal Pradesh, Jammu and Kashmir, Ladakh, Rajasthan, Uttarakhand, and Sikkim.

• Some areas of the Andaman & Nicobar Islands and Sikkim are classified as restricted under a separate 1963 Order.

Historical Relaxation of PAR

• Relaxation in 2010: Security improvements and tourism promotion led to the removal of restrictions in Manipur, Mizoram, and Nagaland. Initially relaxed for one year, extended in phases until 2027.
• Reimposition in 2023: On December 17, the MHA withdrew the relaxation, reinstating the permit requirement for these states.

Why Were Restrictions Reimposed?

Security Concerns in Border Areas:

• Ongoing ethnic violence in Manipur, particularly between the Kuki-Zo and Meitei communities.
• Influx of undocumented migrants from Myanmar following the 2021 military coup, with over 40,000 refugees in Mizoram and 4,000 in Manipur.
• Migrants belonging to the Kuki-Chin-Zo ethnic group share cultural ties with local communities.

Border Vulnerabilities:

• India shares a 1,643 km border with Myanmar through Arunachal Pradesh, Nagaland, Manipur, and Mizoram.
• The Free Movement Regime (FMR), allowing border residents within 16 km of the border to cross, has been suspended since January 2023.

Process to Obtain a Protected Area Permit (PAP)

• Issuing Authorities: Indian Missions, MHA, district magistrates, resident commissioners, and Foreigners Regional Registration Offices (FRRO).
• Special Conditions: Nationals of Afghanistan, China, and Pakistan, or those of origin in these countries, require prior MHA approval. Myanmar nationals with valid visas must also register with the FRRO within 24 hours of arrival.

Conclusion

The reimposition of the PAR highlights the government’s efforts to strengthen border security amidst ongoing ethnic tensions and migrant inflows in the northeastern states. Ensuring controlled foreign access is part of broader measures to manage the region’s sensitive geopolitical environment.

ISRO’S SPADEX MISSION

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU

The Indian Space Research Organisation (ISRO) is set to launch its innovative Spadex mission on December 30, 2024. This mission will demonstrate the docking of two satellites in space, a capability crucial for future missions such as Chandrayaan-4 and establishing the Bharatiya Antariksh Station.

Key Details of the Spadex Mission

Mission Objectives

• Docking two satellites, named SDX01 (Chaser) and SDX02 (Target), in space.
• Demonstrating power transfer between the two satellites.
• Ensuring payload operations for two years post-separation.

Satellite Details

• SDX01 (Chaser): Equipped with a high-resolution camera for surveillance.
• SDX02 (Target): Includes a multispectral payload to monitor natural resources, vegetation, and space radiation.

Launch Vehicle and Orbit

• The mission will use the Polar Satellite Launch Vehicle (PSLV-C60).
• The satellites, weighing 220 kg each, will be deployed in a 470 km circular orbit.

Technological Innovations

• Docking Mechanism: A sophisticated system ensures precise alignment and prevents collision.
• Sensor Suite: Advanced sensors facilitate accurate positioning and movement.
• Novel Navigation Technology: Relative orbit determination is guided by a unique constellation-based system.

Additional Experiments

The rocket’s final stage will demonstrate 24 payloads, including:

• A robotic arm to manage space debris.
• An experiment on seed germination and plant growth in space.

Conclusion

The Spadex mission represents a significant leap for ISRO, showcasing capabilities like satellite docking and advanced payload operations. It paves the way for more complex missions and contributes to India’s growing presence in space exploration.

INDIA’S ECONOMIC OUTLOOK FOR 2025: A MIXED PICTURE

TOPIC: (GS3) ECONOMY: INDIAN EXPRESS

India’s economy faces a combination of positive and negative factors as it heads into 2025. The finance minister and economists have mixed views on the short-term and long-term outlook, with the country expected to maintain relatively stable growth over the next few years

Key Positives

Government Spending and Fiscal Measures:

• Increased fiscal spending is expected to boost economic recovery, particularly after the election cycle.
• A reduction in the cash reserve ratio (CRR) has freed up funds for banks, promoting investment.
• The government’s capital expenditure (capex) cycle is showing signs of improvement, especially in sectors like utilities, which could drive future industrial growth.

Services Sector Growth:

• India’s services sector continues to outperform, with services exports surpassing goods exports in recent months.
• Strong growth in IT exports and demand for remote working are significant drivers, though risks from AI technologies remain a concern.

Possible MSME Recovery:

• Micro, Small, and Medium Enterprises (MSMEs) are showing signs of recovery after facing multiple shocks.
• There is growth in rural consumption and salaried employment, particularly in MSMEs, which could narrow the disparity in the economy’s K-shaped recovery.

Female Workforce Participation:

• The participation of women in the workforce is rising, particularly in rural areas. This is a positive sign for long-term economic development.

Key Concerns

Sluggish Private Investment:

• Despite corporate tax cuts, private investments are still weak due to uncertainty and issues with India’s tax system.
• Corporates are scaling down salary and wage expenditure, signalling lower growth in urban demand and potential job creation.

Savings-Investment Gap:

• Household financial savings have significantly declined, while debt has risen. This poses a challenge for future economic stability.
• A large portion of savings is bypassing banks and entering financial markets, which is a concern for financial institutions.

Credit Growth Decline:

• Credit growth has slowed, particularly in the household sector, affecting consumption-driven growth.
• The lack of appetite for new credit among industries further limits the economy’s ability to grow.

Fiscal Risks:

• While the central government aims to reduce fiscal deficits, some state governments are increasing expenditure on subsidies and transfers.
• These handouts, aimed at helping lower-income families, may have contributed to inflation, particularly in food prices.

Conclusion

India’s economy faces a challenging but manageable path ahead. While government fiscal measures and the recovery of MSMEs offer optimism, sluggish investments, rising debt, and fiscal risks pose significant hurdles. Achieving sustainable growth requires addressing these challenges while maintaining the momentum in key sectors.

GROWTH OF INDIA’S GREEN COVER: NOT ALL POSITIVE

TOPIC: (GS3) ENVIRONMENT: INDIAN EXPRESS

India’s overall green cover has shown growth over the past two decades, but not all developments are encouraging, as the composition and quality of forests have raised concerns. Despite a marginal increase in forest and tree cover, significant losses in dense forests point to challenges that need attention.

Increase in Forest and Tree Cover

• Recent Findings: According to the 18th biennial State of Forest Report (ISFR-2023) by the Forest Survey of India (FSI), India’s total green cover has grown, surpassing 25% of the country’s land area. This includes 21.76% forest cover and 3.41% tree cover.
• Forest and Tree Cover Growth: Since 2021, forest cover has increased slightly by 156 sq km, while tree cover rose significantly by 1,289 sq km. This increase in tree cover, particularly in areas smaller than 1 hectare, has been the sharpest in recent years, showing a positive shift.
• Trend Over Time: The forest cover has been growing at a slower pace since the 2000s. From 20.62% in 2003, forest cover only grew by 0.05 percentage points since 2021.

Loss of Dense Forests

• Destruction of Dense Forests: Between 2003 and 2023, India lost more than 24,000 sq km of dense forests, equivalent to nearly half the size of Punjab. The loss has been a consistent trend, with 3,913 sq km of dense forests disappearing between 2021 and 2023 alone.
• Causes: This loss is mainly due to deforestation, land-use changes, and the expansion of non-forest areas into plantations. Natural forests, which are more biodiverse and ecologically valuable, are being replaced by plantations, which grow rapidly but lack biodiversity.

Plantations vs. Natural Forests

• Plantations as a Concern: The expansion of plantations has led to the replacement of natural forests. While plantations grow quickly and are used to meet carbon targets, they are not as ecologically rich or carbon dense as natural forests. Plantations are often vulnerable to pests, fires, and disease, and they lack the biodiversity and long-term stability of natural forests.
• Environmental Impact: The conversion of natural forests into plantations undermines carbon storage and biodiversity. The United Nations Framework Convention on Climate Change (UNFCCC) has raised concerns about the assumption that plantations can match the carbon stock of mature forests within eight years.

Implications and Conclusion

• Loss of Ecological Functionality: The gradual replacement of natural forests with plantations undermines the ecological functions that dense, biodiverse forests provide. This includes their role in carbon storage, water retention, and supporting diverse wildlife.
• Need for Balanced Forest Management: While tree cover and plantation growth provide short-term gains, there is an urgent need to focus on protecting and regenerating natural forests to ensure long-term ecological stability and climate resilience.

In summary, while India’s green cover has increased, the loss of natural dense forests and the rise of plantations call for more sustainable forest management practices to safeguard biodiversity and carbon storage.