28-November-2024-Daily-Current-Affairs

DEALING WITH THE CHINA QUESTION

TOPIC: (GS3) ECONOMY: INDIAN EXPRESS

China’s increasing military capabilities and assertiveness have created challenges for India’s defence preparedness. To address this, India must modernize its defence industrial base and strengthen security ties with like-minded Asian nations. Recent defence agreements with Australia and Japan highlight potential for deeper cooperation.

India’s Defence Cooperation with Asian Partners

• Australia: A new agreement enables air-to-air refuelling between Indian and Australian aircraft. Enhances interoperability and extends operational reach for both air forces.

• Japan: Discussions with Japan focus on defence industrial collaboration. Recently, an MoU was signed for the joint production of stealth equipment for Indian warships.

Challenges from China’s Defence Capabilities

• Territorial Assertiveness: China’s military buildup fuels regional concerns over disputed territories, including its borders with India.
• Expansive Defence Production: China’s defence spending surpasses that of India and Japan combined. Commissioned 70 submarines between 1995 and 2020, showcasing a massive production scale.
• Modernisation and Research: Investments in advanced technology and R&D have bolstered China’s defence capabilities significantly.

Regional and Global Responses to China

• Regional Security Cooperation: Asian nations are increasingly collaborating with the U.S. for security. “Asia for Asians” rhetoric, often promoted by China, is now viewed as a strategy for regional dominance.
• U.S. Involvement in Asia: The U.S. presence remains vital for balancing power in Asia. However, its forces are stretched across multiple theatres, including Europe, the Middle East, and Asia.
• Constraints in U.S. Military Production: America faces challenges in meeting current global demands for weapons and equipment. Outdated facilities and workforce shortages affect its ability to counter China effectively.

Opportunities for India’s Defence Modernisation

• Defence Reforms: India must accelerate reforms to bridge the gap with China. A high-level committee has recommended restructuring the Defence Research and Development Organisation (DRDO).
• Defence Partnerships: India has signed defence industrial roadmaps with the U.S., France, and plans to engage with Italy. Increased focus on private sector participation and arms exports.
• Regional Diplomacy: Military partnerships in Asia can help India counter China’s growing influence.

INDIA’S MILITARY EXPORTS:

FY 2023-24

India’s defence exports reached a record high of ₹21,083 crore (about $2.63 billion) in FY 2023-24, a 32.5% increase from the previous fiscal year. This is a 31-fold increase from FY 2013-14.

• India’s defence exports have grown over 12 times since FY 2017. This growth is attributed to:

• • Policy reforms
• • Initiatives to improve the ease of doing business

• • An increased number of export authorizations granted to defence manufacturers

• • Efforts from both the private and public sectors

Export customers

• The top three countries for India’s defence exports in the last financial year were the U.S., France, and Armenia.

Arms importer

• India remains the world’s largest arms importer, accounting for 9.8% of global imports. 

Conclusion

India’s defence challenges require urgent action to modernize its capabilities and build stronger alliances. Proactive reforms and international collaborations are critical to addressing the military gap with China and ensuring regional stability.

SURGE IN WORKER DELETIONS FROM MGNREGA JOB CARDS

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) recent trends show a steep rise in the deletion of workers from MGNREGA job cards, raising concerns over the denial of this legal right. The surge coincides with the government’s push for Aadhaar-based payment systems (ABPS), sparking debates over the reasons and implications of these deletions.

Reasons for Job Card Deletions

• Guidelines for Deletion: Deletions can occur for reasons like migration, duplicate or forged documents, or a village being reclassified as urban.
• Procedural Gaps: Many deletions are carried out without independent verification or Gram Sabha approval, as mandated by the Act.

• A significant number of workers are unaware of their deletion until they attempt to access work.

• Increased Use of ABPS: Mandatory Aadhaar seeding has pressured officials to comply by increasing ABPS-linked job cards. This compliance drive has been linked to mass deletions without due diligence.

Surge in Worker Deletions

• Statistical Data: From 2021-22 to 2022-23, worker deletions rose by 247%, with 5.53 crore deletions reported in 2022-23. Over the past four years, 10.43 crore workers were removed from job card records.
• Pattern of Deletions: “Not willing to work” was the most cited reason, increasing from 63% in 2021-22 to 83% in 2023-24. Many workers categorized as “Not willing to work” had, in fact, worked or demanded work during the same year.
• State-Wise Observations: West Bengal recorded a sharp rise in deletions due to halted MGNREGA funds since late 2021. Some villages showed deletions under questionable reasons, such as “Village becomes urban,” applied selectively.

Challenges and Recommendations

• Arbitrary deletions violate the right to work and undermine the scheme’s social justice goals.
• Lack of audits and analysis of deletion reasons indicates weak oversight.

Recommendations:

• Conduct independent audits and ensure adherence to deletion protocols.
• Involve Gram Sabhas and ensure proper grievance redress mechanisms.
• Train Gram Panchayats to conduct unbiased investigations and engage worker representatives in decision-making.

Conclusion

Ensuring transparency, accountability, and fairness in the deletion process is essential for preserving the integrity of MGNREGA. Strengthened oversight and proactive measures are needed to uphold its promise of employment and social justice.Top of Form

CORPORATE TAX CUTS AND THEIR IMPACT

TOPIC: (GS3) INDIAN ECONOMY: THE HINDU

India implemented significant corporate tax reductions in 2019, reducing the tax rate for companies to promote investments and economic growth. However, this move has sparked debates on its effectiveness, fiscal impact, and equity.

Key Highlights

Corporate Tax Cuts Overview

• Pre-2019, domestic companies were taxed at 30% (above ₹400 crore turnover) or 25% (below ₹400 crore turnover).
• Post-2019, the tax rate was reduced to 22% for companies that opted out of certain deductions.
• New manufacturing companies enjoyed even lower rates under specific conditions.

Tax Savings for Corporates

• Corporates may have saved ₹3.14 lakh crore in taxes from FY20 to FY24 due to reduced rates.
• Over the decade ending FY22, revenue foregone through tax deductions amounted to ₹8.22 lakh crore.

Growth in Corporate Profits vs. Taxes Paid

• Pre-FY20: Company profits grew at 4%, while taxes paid increased at 11.5% annually.
• Post-FY20: Profits grew at a faster rate of 5%, but tax payments increased by only 18.6%.

Effective Tax Rate

• The average effective tax rate of top companies fell from 30%+ (FY19) to 2% (FY24).
• Larger companies continue to enjoy lower effective tax rates compared to smaller ones.

Analysis and Concerns

• Lower corporate taxes reduce government revenue, impacting its ability to finance development projects.
• The corporate tax-to-GDP ratio has declined, raising concerns about fiscal sustainability.
• While the tax cuts aimed to encourage private investment and job creation, evidence of their success is mixed.
• Pandemic-related disruptions complicate assessing the full impact of these incentives.
• Experts argue that concessions often benefit larger corporations disproportionately, raising equity concerns.
• Some believe these cuts primarily serve the interests of the business community.

CORPORATE TAX IN INDIA

Corporate tax is a direct tax levied on the net income or profit of companies by the government.

Applicability:

• Paid by domestic and foreign companies operating in India.
• Domestic companies are taxed on global income, while foreign companies are taxed on income earned within India.

Different Types of Taxes in India

1. Direct Taxes

• Levied directly on individuals and organizations.

Examples:

• Income Tax: Paid by individuals and businesses on income earned.
• Corporate Tax: Charged on companies’ profits.
• Capital Gains Tax: Imposed on profits earned from the sale of assets like property, stocks, etc.
• Wealth Tax (Abolished in 2015): Previously imposed on net wealth exceeding a certain limit.

2. Indirect Taxes:

Levied on goods and services, collected indirectly through sellers or service providers.

Examples:

• Goods and Services Tax (GST): Unified tax on the supply of goods and services. Categories: CGST, SGST, IGST.
• Customs Duty: Levied on goods imported into or exported from India.
• Excise Duty (Limited post-GST): Previously charged on manufactured goods, now applicable to specific items like petroleum.

Conclusion

India’s corporate tax cuts have saved significant amounts for businesses, but their broader economic benefits remain debatable. Balancing revenue needs with business incentives requires careful cost-benefit evaluations to ensure sustainable growth and equitable outcomes.

ONE NATION ONE SUBSCRIPTION (ONOS)

TOPIC: (GS2) INDIAN POLITY: INDIAN EXPRESS

The Union Cabinet recently approved a ₹6,000 crore budget for the “One Nation One Subscription” (ONOS) initiative. This scheme aims to provide equitable access to 13,000 academic journals for nearly 6,300 government-run higher education institutions (HEIs).

Key Features of ONOS

Current System of Journal Access

• HEIs presently access journals through 10 different library consortia under various ministries.
• Institutions also subscribe to journals individually, leading to overlapping subscriptions.
• Roughly 2,500 institutions currently access 8,100 journals through these fragmented systems.

Unified Access Under ONOS

• ONOS will centralise journal subscriptions, providing access to 13,000 journals from 30 major publishers on a single platform starting January 1, 2025.
• Institutions need only to register on the platform for access.
• The INFLIBNET Centre will oversee the scheme’s implementation.

Financial Structure

• The government has negotiated a subscription cost of ₹1,800 crore annually, down from the initial estimate of ₹4,000 crore.
• The allocated ₹6,000 crore will cover the initiative for three years (2025–2027).

Objectives and Benefits of ONOS

• Expanded Access: Provides journal access to over 1.8 crore students, researchers, and faculty members across government HEIs, including institutions in Tier 2 and Tier 3 cities.
• Cost Efficiency: Eliminates duplicate subscriptions and reduces excess expenditure on overlapping resources.
• Enhanced Bargaining Power: Centralised negotiations with publishers ensure cost savings and better terms.
• Improved Insights and Utilisation: The government can monitor the usage of journals to identify gaps and encourage underutilised institutions to maximise their benefits.

Background and Roadmap

• ONOS was inspired by NEP 2020, which highlighted research as vital for national development.

• A cost negotiation panel, chaired by the Principal Scientific Advisor, was formed to streamline subscription costs.

• The government plans to negotiate Article Processing Charges (APCs) with publishers to reduce publication fees for Indian researchers.
• In 2021, Indian authors paid approximately ₹380 crore in APCs, which the government aims to bring down through centralised negotiations.

Conclusion

ONOS represents a transformative step towards fostering equitable access to academic resources, promoting research, and optimising expenditure for India’s HEIs. By simplifying access and reducing costs, the initiative aligns with the nation’s vision of becoming a global leader in knowledge and innovation.

BAN ON CARCINOGENIC DRUG RANITIDINE: NEED FOR REGULATORY ACTION

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU

Ranitidine, a widely used drug for treating acid reflux, has come under scrutiny for containing unsafe levels of N-nitrosodimethylamine (NDMA), a known carcinogen. Despite bans in several countries, India continues to allow its sale, raising concerns about public health and regulatory oversight.

Background

• Global Action on Ranitidine: In 2020, the U.S. FDA and European Medicines Agency (EMA) banned Ranitidine due to high NDMA levels. GSK, the original manufacturer, withdrew the drug worldwide, including in India.
• Carcinogenic Risks: NDMA, found in Ranitidine, exceeds safe limits by thousands of times. High exposure to NDMA is linked to cancer.
• India’s Regulatory Inaction: Despite warnings and global bans, India’s Ministry of Health has not stopped the sale of Ranitidine.

Regulatory Structure in India

• Indian Pharmacopeia Commission (IPC): Responsible for setting drug quality standards, including impurity limits. Publishes the Indian Pharmacopeia with testing protocols for various drugs. Supplies reference and impurity standards for quality checks.
• Drug Inspectors and State Authorities: Enforce IPC standards by testing drug samples. Drugs failing to meet standards are categorized as “not of standard quality.”
• Ministry of Health – Section 26A of the Drugs and Cosmetics Act, 1940: Empowers the central government to prohibit the manufacture and sale of harmful drugs. However, this section often lacks expertise due to non-specialist leadership

Issues with Ranitidine in India

• Failure to Detect NDMA: The IPC did not identify NDMA contamination in Ranitidine despite global reports. Lack of transparent and accessible IPC standards; the latest Pharmacopeia costs ₹50,000, limiting public scrutiny.
• Inaction on Public Health Warnings: Unlike other nations, India has not banned Ranitidine, leaving millions at risk. Safer alternatives exist but have not been promoted effectively.
• Weak Enforcement Mechanisms: State and central drug regulators have not adequately enforced quality checks for NDMA in Ranitidine.
• Lack of Expertise in Decision-Making: Section 26A decisions are often delayed or uninformed due to inadequate technical knowledge in leadership.

Recommendations

• Immediate Ban on Ranitidine: The Ministry of Health should invoke Section 26A to stop the manufacture and sale of Ranitidine.
• Strengthen IPC Standards: Update permissible NDMA limits and testing protocols for Ranitidine. Make the Indian Pharmacopeia freely accessible for transparency.
• Enhance Regulatory Oversight: Ensure drug inspectors strictly enforce standards. Promote alternatives like famotidine and omeprazole.
• Specialized Leadership: Appoint technically qualified experts in the drug regulation division to ensure informed decisions.

Conclusion

The continued sale of Ranitidine in India highlights gaps in drug regulation and enforcement. Swift action is essential to protect public health and align with global safety standards.

GLOBAL MATCHMAKING PLATFORM (GMP)

TOPIC: (GS2) INDIAN POLITY: PIB

The United Nations Industrial Development Organization (UNIDO) and the Climate Club have recently introduced the Global Matchmaking Platform (GMP) to accelerate decarbonization efforts in heavy-emitting industries within emerging and developing nations.

About the Global Matchmaking Platform

The GMP is aimed at expediting the transition to low-carbon practices in industrial sectors with significant emissions in developing economies.

• Inception: The platform emerged as an initiative during COP28 in December 2023, alongside the launch of the Climate Club.

Key Features:

• Country-Specific Support: Aligns the unique needs of nations with global expertise and financial assistance to reduce emissions.
• Global Network: Links countries to a network of partners providing technical and financial support to drive industrial decarbonization.

Support Areas:

• Policy Development: Aids governments in crafting strategies and regulations for sustainable industrial practices.
• Technology Transfer: Facilitates access to innovative technologies essential for reducing emissions.
• Investment Facilitation: Encourages financial investments to enable a transition to low-emission or zero-emission industrial processes.
• Enhanced Emission Goals: Offers assistance in improving national emissions reduction targets.

• Customizable Pathways: The GMP enables nations to develop tailored decarbonization plans while providing streamlined access to expertise and resources from partner organizations.

Operational Framework

• Climate Club Support: The GMP is an integral mechanism of the Climate Club, with its secretariat managed by UNIDO.
• Collaborative Oversight: The initiative is further supported by the interim Secretariat of the Climate Club, co-hosted by the Organisation for Economic Co-operation and Development (OECD) and the International Energy Agency (IEA).

By bridging local needs with global resources, the GMP seeks to transform high-emission industries into sustainable, low-emission operations, significantly contributing to global climate goals.

RAIMONA NATIONAL PARK

TOPIC: (GS2) ENVIRONMENT: THE HINDU

Scientists recently documented a solitary mainland serow (Capricornus semitrances thar) at an elevation of 96 meters above mean sea level in Raimona National Park, located in western Assam.

About Raimona National Park

• Location: Situated along the Indo-Bhutan border in Kokrajhar district within the Bodoland Territorial Region (BTR) of Assam. Declared a national park on June 5, 2021.
• Transboundary Landscape: Forms a shared conservation landscape with Bhutan’s Phibsoo Wildlife Sanctuary and Jigme Singye Wangchuck National Park, spanning over 2,400 sq km.
• Rivers: The Sonkosh River flows along the western boundary, while the Saralbhanga River borders the eastern side of the park.

Vegetation and Flora

Diverse Forest Types:

• Encompasses 12 distinct forest types and sub-types, including:
• Very moist sal forests
• Sub-Himalayan high alluvial semi-evergreen forests
• Savannah forests
• Moist mixed deciduous forests
• Riparian fringing forests
• Khoir-sisoo forests

Floral Richness: Home to a variety of orchids, tropical rainforest species, and riverine grasslands.

Fauna

• Iconic Species: Known for the golden langur, the mascot of the Bodoland region.
• Other Wildlife: Hosts species such as elephants, Bengal tigers, wild bison, white-spotted deer, clouded leopards, and wild buffalo.

Raimona National Park serves as a vital hub for biodiversity and plays a significant role in transboundary conservation efforts.

PENNAIYAR RIVER

TOPIC: (GS3) GEOGRAPHY: THE HINDU

The Supreme Court recently directed the Union government to submit a report prepared by a committee mediating the water-sharing conflict between Tamil Nadu and Karnataka over the Pennaiyar River.

About the Pennaiyar River

• A key river in southern India, traversing the states of Tamil Nadu and Karnataka.
• Known by various names, including South Pennar River, Dakshina Pinakini (Kannada), and Thenpennai or Ponnaiyar (Tamil).

Course of the River

• Origin: Begins at Nandi Hills in the Chikkaballapura district, Karnataka.
• Flow Path: Travels 80 km southward through Karnataka before entering northwestern Tamil Nadu. Changes direction to flow southeastward for 320 km, eventually draining into the Bay of Bengal at Cuddalore, Tamil Nadu.

Surrounding Features:

• The basin is bordered by the Eastern Ghats, including: Velikonda Range, Nagari Hills, Javadu Hills, Shevaroy Hills, Chitteri Hills, and Kalrayan Hills.
• Bounded to the east by the Bay of Bengal.

Key Facts

• River Basin: The Pennaiyar is the second largest east-flowing interstate river basin among the 12 basins between the Pennar and Cauvery. It covers an area of 16,019 sq. km, with 77% of the basin located in Tamil Nadu.
• Tributaries: Major tributaries include the Chinnar, Markanda, Vaniar, and Pamban rivers.
• Uses: Extensively dammed for irrigation, particularly in Tamil Nadu.
• Pollution Concerns: Bengaluru, the only major city in the basin, is the largest source of pollution affecting the river.

The Pennaiyar River holds immense ecological, agricultural, and social significance, but its management requires cooperative efforts to address pollution and equitable water sharing.