General Studies Paper -3

Context: Prime Minister witnessed the initiation of the core loading of India’s indigenous 500 Mwe Prototype Fast Breeder Reactor (PFBR) at the Madras Atomic Power Station, Kalpakkam.

• This marked India’s entry into the vital second stage of the country’s three-stage nuclear programme. 

What is the PFBR?

• PFBR was constructed and will be operated by Bharatiya Nabhikiya.
• Government approved the creation of Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI) in
• The PFBR is a machine that produces more nuclear fuel than it consumes.

The Salient Feature of the Reactor:

• The Fast Breeder Reactor (FBR) will initially use the Uranium-Plutonium Mixed Oxide (MOX) fuel. 
• TheUranium-238 “blanket” surrounding the fuel core will undergo nuclear transmutation to produce more fuel, thus earning the name ‘Breeder’.
• The use of Thorium-232,which in itself is not a fissile material, as a blanket is also envisaged in this stage.
• By transmutation, Thorium will create fissile Uranium-233which will be used as fuel in the third stage. 

Significance of the Fast Breeder Reactor

• FBR is  a stepping stone for the third stage of the program paving the way for the eventual full utilization of India’s abundant thorium reserves.
• It can produce more fuel than it consumes, thus helping in achieving self-reliance in fuel supply for future fast reactors.
• It is an advanced third-generation reactor with inherent passive safety features, ensuring a prompt and safe shutdown of the plant in an emergency.
• Since it uses spent fuel from the first stage, FBR also offers an advantage in a significant reduction in nuclear waste generated. 
• Once commissioned, India will be the second country after Russiato have a commercially operating fast breeder reactor.

India’s Three-stage Nuclear Program

• Homi J. Bhabha designed the three-stage programme as India has limited domestic uranium resources but has abundant Thorium. 
• The three stages are expected to allow the country complete self-sufficiency in nuclear energy.
• First Stage (Pressurized Heavy Water Reactors – PHWRs): India’s nuclear program initially focused on establishing a fleet of PHWRs.
• These reactors use natural uranium (U-238), which contains minuscule amounts of U-235, as the fissile material.
• Heavy water (deuterium oxide) as both moderator and coolant.
• The primary purpose of this stage was to produce plutonium-239 as a byproduct from the uranium fuel. 
• Plutonium-239 is a fissile material used as fuel in nuclear reactors.
• Second Stage (Fast Breeder Reactors – FBRs): The second stage of the program involves the deployment of Fast Breeder Reactors (FBRs).
• FBRs are designed to produce more fissile material than they consume by utilizing a fast neutron spectrum.
• In this stage, plutonium-239produced in the first stage is used as fuel along with U-238 to produce energy, U-233, and more Pu-239. 
• Uranium-233is another fissile material that can be used as fuel in nuclear reactors.
• Third Stage (Advanced Heavy Water Reactors – AHWRs): The final stage of the program entails the deployment of Advanced Heavy Water Reactors (AHWRs). 
• Pu-239 will be combined with thorium-232 (Th-232)in reactors to produce energy and U-233. 

Thorium is abundantly available in India, and this stage aims to harness its potential as a nuclear fuel. 

General Studies Paper -3

Context: Recently, the groups of farmers asked for a legal guarantee for purchasing crops at Minimum Support Price (MSP).

Minimum Support Price (MSP)

• It is a form of market intervention by the Central Government to insure agricultural producers against any sharp fall in farm prices.
• It protects the producer- farmers against distress sale during bumper production years.

Current Status of MSP

• The Union Government sets a MSP for23 crops before the sowing period every year, based on a formula of one-and-a-half times production costs.
• It is implemented mostly for rice and wheat mainly because India has vast storage facilities for these grains and uses the produce for its public distribution system (PDS).
• It takes into account both paid-out costs such as seeds, fertilisers, pesticides, fuel, irrigation, hired workers and leased-in land, as well as the imputed value of unpaid family labour.
• However, there is currently no statutory backing for these prices, nor any law mandating their enforcement. A farmer cannot demand MSP as a matter of right.

Demand for Legal Guarantee

• Farmers have been demanding a legal guarantee for MSP by arguing that without such a price, farmers will become bankrupt and leave farming, which will have serious consequences for our food security, adversely affecting consumers.
• The demand for a legal guarantee for MSP has two parts:

1. MSP should be based on the comprehensive cost of production (C2), as determined by the Commission for Agricultural Costs and Prices (CACP), plus 50%, as recommended by the Swaminathan Commission.
2. The 23 crops for which MSP is announced should be legally purchased at or above the MSP price by anyone who ‘willingly enters’ the market.

Arguments Favouring Legalising MSP

• Agricultural Crisis:The agricultural sector has been squeezed in many ways over the past 30 years, and there is a need for a legal guarantee for MSP to address this crisis.
• Nutrition Security: As India shifts from food security to nutrition security, a legal guarantee for MSP for 23 crops could be a way to achieve this.
• Price Stabilisation:The government is not expected to buy all the 23 crops. But if at least 5-10% of the produce is purchased, it would be a marginal intervention and stabilise the prices.
• Support to Farmers:The government’s price policy is to ensure remunerative prices to farmers by offering to procure their produce at MSP.

Arguments Against Legalising MSP

• Implementation Challenges:While the Centre has fixed MSP for 23 farm commodities, it is implemented mostly for rice and wheat mainly because India has vast storage facilities for these grains.
• Limited Reach:According to the Shanta Kumar Committee’s 2015 report, only 6% of the farm households sell wheat and rice to the government at MSP rates.
• Need for Policy Review:There is a need for a detailed, thorough review of agricultural trade policies and production and also what will happen to agriculture in the next 20-25 years.

Government’s Stand

• The Union government has repeatedly asserted that a legal guarantee for MSP will not be possible by arguing that MSP is a minimum price that the farmer must get to remain in business.
• However, it has not taken any concrete steps towards providing a legal guarantee for MSP.

Conclusion

• The debate around the legality of MSP in India is complex and multifaceted. It involves considerations of economic policy, agricultural sustainability, and social justice.
• While the demand for a legal guarantee for MSP is strong among farmers, the government and policy makers need to consider the broader implications of such a move.

General Studies Paper -3

Context: Recently, it was found that the ‘Apex Decision Making Body of World Trade Organization (WTO)’ made little progress on key issues that affect global trade on its 13the meeting.

WTO (World Trade Organisation)

• It is the only global international organisation dealing with the rules of trade between nations.
• Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible.

Formation of WTO

• Predecessor: The General Agreement on Tariffs and Trade (GATT)was established by a multilateral treaty of 23 countries in 1947 after World War II.
• GATT was designed to provide an international forumthat encouraged free trade between member states by regulating and reducing tariffs on traded goods and by providing a common mechanism for resolving trade disputes.
• The Marrakesh Agreement:The establishment of the WTO was agreed upon during the Uruguay Round of GATT negotiations, which took place from 1986 to 1994.
• It was signed by 123 nations on April 15, 1994, marking the culmination of the Uruguay Round and the official establishment of the WTO.
• It expanded upon the scope of the GATT to include new areas such as services, intellectual property, dispute resolution, and trade policy review mechanisms.
• The WTO officially commenced operations on January 1, 1995, in accordance with the 1994 Marrakesh Agreement, replacing the GATT.

Organisational Structure of WTO

• Ministerial Conference:The WTO’s apex decision-making body is the Ministerial Conference, which usually takes place every two years.
• General Council:It is just below the Ministerial Conference that meets several times a year at the WTO’s headquarters in Geneva.
• It meets as the Trade Policy Review Bodyand the Dispute Settlement Body.
• Trade Related Intellectual Property Rights (TRIPS) Council: It is for the Goods, Services, and Intellectual Property,and it reports to the General Council.

Significance of the WTO

• Its main function is to ensure that global trade flows as smoothly, predictably, and freely as possible. These include:
• Facilitating Global Trade: The WTO operates a system of trade rules and provides a forum for governments to negotiate trade agreements.
• It helps to reduce obstacles to international trade and ensures a level playing field for all, thus contributing to economic growth and development.
• The WTO has been a force for globalisation, with both positive and negative effects.
• Mediating Trade Disputes:The WTO plays a vital role in mediating trade disputes.
• It helps to resolve conflicts and disagreements over trade policies and practices, ensuring that trade relations among countries remain fair and balanced.
• Supporting Developing Countries:The WTO supports the needs of developing countries.
• As an influential member of the WTO, India, for example, has been at the forefront of building fair global laws, statutes, and shields and supporting the concerns of the developing world.
• By being a member of the WTO, several countries are now trading with India, thus giving a boost to production, employment, the standard of living, and an opportunity to maximise the use of the world’s resources.

Challenges and Criticisms Ahead of WTO

• Impasse in Negotiations: The current impasse in the WTO negotiations has led member countries to believe in the necessity of carrying out urgent reforms.
• At the core of the divide within the WTO is the Doha Development Agenda, which the developed countries sought to jettison in favour of a new agenda that includes, amongst others, e-commerce, investment facilitation, MSMEs, and gender.
• Dispute Settlement Mechanism: Reinstating a fully functional WTO dispute settlement body to resolve trade disputes between countries could take longer than expected as there continues to be wide differences between developed and developing countries over the issue.
• The US, since 2017, has been blocking the appointment of new judges to the WTO’s seven-member appellate court as it believes that the body is hurting its interest.
• Unilateral Protectionist Measures: India has expressed serious concerns in a WTO meeting over an increase in the use of trade protectionist measures by certain countries in the name of environment protection.
• The European Union’s (EU)decision to impose a carbon tax (a kind of import tax) on sectors such as steel and fertiliser; and adoption of deforestation regulation by the 27-nation bloc are some examples.
• Definition of ‘Developing Country’: The push for a change in the definition of ‘developing country’ under the principle of special and differential treatment (S&DT), aimed at upgrading certain developing countries, will deeply impinge on the status of emerging economies such as India, China, South Africa, Turkey, Egypt, etc.
• Fisheries Subsidies:Among the current negotiations at the WTO, nothing commands more attention than the fisheries subsidies negotiations. These subsidies often lead to overcapacity and overfishing.
• India can lead the way in finding a landing zone by urging others to settle for the lowest common denominator, while seeking permanent protection for traditional and artisanal farmers who are at the subsistence level of survival.
• Agriculture and Food Security:One of the long-standing issues discussed at the conference was public stockholding for food security.
• Public Stockholding is a policy tool under which governments procure crops like rice and wheat from farmers at a minimum support price (MSP), store, and distribute food grains to the poor.
• It is continuously persisted and carried forward from the 12th Ministerial Conference held at Geneva.
• However, the 13th conference ended without finding a permanent solutionto the public stockholding issue.

Challenges Specific to India

• India has always faced pressure from developed nations, including the US, EU and Canada, to reduce the subsidy it gives to farmers.
• WTO rules deal strictly with product-specific supportto producers (as given by India) but they do not discourage ‘Green Box’ subsidies.
• India has fought for dropping the distinction between green box and other subsidies.
• Peace Clauseonly includes the government programmes started before 2013 and the Indian government wants programmes started after 2013 to be included as well.
• Special and differential treatment: The gaps between the developing and developed members have widened in many areas, emphasising that the special and differential treatment (S&D) must continue.
• Such treatment has been a treaty-embedded and non-negotiable right for all developing members.

Suggested Reforms in the WTO

• To reinvigorate the WTO, reform needs to coverall three pillars.
• Negotiation:It needs to be more responsive to the changing dynamics of global trade.
• Dispute Settlement Mechanism:It needs to be made more efficient and effective.
• Monitoring and Deliberation:It needs to be strengthened to ensure better compliance by member countries.
• Accept a diluted Appellate Body: While the US has so far opposed the AB in principle, it may consider an Appellate Body with limited powers.
• The powers of the Appellate Body can be truncated in various ways, such as requiring it to be largely deferential to the parties to the dispute, stating that Appellate Body rulings will not have a persuasive value, etc.
• Resurrect the Appellate Body in its original form with one important change:Countries will have the option to opt out of Appellate Body’s compulsory jurisdiction.
• This option is to resurrect the Appellate Body in the same form as it existed till 2019.
• India strongly supports robust WTO reforms and modernisation agenda, it stressed that the reform process should take place in the General Council and other regular bodies too.
• India, among other countries, has been actively pitching for WTO reforms and pressing for better dispute settlement mechanisms. At the upcoming G20 meeting, India will push for reforming and strengthening the WTO.
• At least 60 countries including India have proposed a new method to calculate subsidies given to purchase, stockpile and distribute food to ensure food security for developing and poor nations.

Conclusion and Way Forward

• The need for WTO reform is urgentand must be addressed on a top priority basis. It is crucial for the future of global trade and the world economy.
• The WTO must adapt to thechanging dynamics of global trade and ensure that it continues to play its role effectively in the years to come.
• Despite the lack of consensus on key issues, the conference did result in some outcomes. The members agreed to extend the moratoriumon imposing import duties on e-commerce trade for two more years.
• The WTO continues to strive towards its goal of ensuring that trade flows as smoothly, predictably, and freely as possible.

General Studies Paper -2

Context: Recently, the urban employment landscape in India for women has been a topic of concern these days, and it is found that there is a high unmet demand for employment among urban women.

About

• The Periodic Labour Force Survey (PLFS)indicates that there has been an increase in women’s workforce participation from 22% in 2017-18 to 35.9% in 2022-23.
• However, this rate is still lower than the global average of 47% and significantly lower than some other countries like China, which has a female LFPR of 60%.
• Despite the increase, the female LFPR in India is still low.
• In Rural Areas: FLFPR has increased to 41.5% in 2022-23 from 24.6% in 2017-18;
• In Urban Areas:FLFPR has increased to 25.4% in 2022-23 from 20.4% in 2017-18, and it pegs women’s employment rate in urban areas at 22.9% in the last quarter of 2023.

Current Scenario (Unmet Demand)

• There are clear signs of high unmet demand for employment among urban women. A much larger share of unemployed women in urban areas are seeking employment compared to rural areas.
• The unemployment rate(a measure of how many would like employment irrespective of whether they are actively seeking it or not) in urban areas is 9% compared to 4% in rural areas.
• There are two types of unemployment, like individuals who would like to work and are actively seeking a job; and those who would like to work but may not be actively seeking a job.
• Wastage of Potential: Nearly 25% of urban women have completed higher secondary education compared to 5% in rural areas.
• The low urban employment rates among women points to wastage of much potential.
• MGNREGA and Deendayal Antyodaya Yojana National Rural Livelihood Mission (DAY-NRLM): These initiatives have been pivotal in providing financial autonomy to women in rural areas.
• More than half the MGNREGA workforce are women.
• However, urban realities are different. Social norms, lack of safety, and hostile transportation options are some of the factors inhibiting urban women to enter the workforce.

Causes and Reasons for Urban Unemployment Among Women in India

• Social Norms and Safety Concerns:Social norms, lack of safety, and hostile transportation options are some of the factors inhibiting urban women to enter the workforce.
• Gender Segregation of Occupation:From the demand side perspective, it is explained by the fact that gender segregation of occupation and sector exists in India and lack of growth in the demand for labour in sectors dominated by women have resulted in low participation.
• Economic Factors: The rapid emergence and adoption of new technologies as a response to the pandemic caused high unemployment due to business failures and the loss of jobs.
• As a result, the skill gap between job seekers with traditional credentials kept widening.
• Population Growth:Increase in population and labour force is the cause of rising unemployment in India.
• That’s why India’s economic growth can’t keep up with the increased population.
• Lack of Adequate Investment:Experts and campaigners feel that a lack of adequate investment in the unorganised; Micro, Small and Medium Enterprises (MSME); and rural development sectors, combined with safety concerns and regressive social norms, is keeping women underemployed or unemployed.
• High Cost:It is important to note that assuming 150 days of work per year at ₹500 as daily wages, the wage component, to be funded by the Union government, would then cost around 5% of the GDP.
• Addingmaterial and administrative costs to this is likely to make it around 2%.

Possible Solution Proposed

• The government has also introduced various protective provisions in the labour laws for equal opportunity and a congenial work environment for women workers.
• The Need for WUEGA:To address overall urban unemployment, some States have an urban employment programme, while these are not restricted only to women.
• There is a need for the WUEGAand Decentralised Urban Employment and Training Scheme at a national level, as MGNREGA for rural women.

Vision for WUEGA

• It envisioned a WUEGA where women format least 50% (ideally 100%) of the programme management staff.
• Involving women and local communities can also potentially strengthen the constitutional mandate of decentralisation.
• Each worksite would have essential worksite facilities including childcare facilities. Work must be available within a 5-km radius and public transportation must be free for women.

Conclusion and Way Forward

• A detailed list of possible urban works such as plantation and harvesting reeds on floating wetlands already exist; these should be supplemented based on local needs and wider consultation.
• Incentives such as automatic inclusion in welfare boards can be created; these could act as agencies to provide maternity entitlements, pensions, and serve as resources for emergency funds.
• Reducing gender gaps and increasing women’s empowerment are part of the Sustainable Development Goals. Notwithstanding ethical and constitutional imperatives, there is also evidence suggesting that increasing women’s employment rates can be an engine for economic growth.
• It is also important to address the societal norms and challenges that inhibit women from participating in the workforce.
• Additionally, more initiatives and policies aimed at encouraging women’s participation in the workforce can help in further improving the female LFPR in India.

General Studies Paper -3

Context: The government’s latest Household Consumption Expenditure Survey (HCES) for 2022-23 shows milk emerging as India’s top food spend item.

About

• The National Sample Survey Office (NSSO) under Ministry of Statistics and Programme Implementation has been conducting household surveys on consumption/consumer expenditure at regular intervals as part of its rounds, normally of one-year duration.
• Since 1972, NSSO has been conducting the Consumer Expenditure Survey.
• It is designed to collect information on consumption of goods and services by the households.

Major Findings

• The income levels of both the Urban and Rural households have risen since the last survey, with Rural households showing a sharper growth in spending.
• Of the total expenditure,46% was spent on food items in Rural households and 39% in Urban homes in 2022-23.
• The monthly value of milk and dairy products consumed by an average person in rural India, at Rs 314, was ahead of vegetables, cereals, egg, fish & meat, fruits, edible oil, spices and pulses.
• For urban India also Milk (Rs 466) emerged as top item followed by fruits, vegetables, cereals, egg, fish & meat, edible oil, spices and pulses.

Challenges Associated with Increased Demand

• Inflation: The price of milk has gone up from Rs 42 to Rs 60 per litre in the last five years, according to the department of consumer affairs.
• Rising Input Cost: The cost of fodder, feed and raw materials/ingredients have increased significantly.
• Dairies have had to hike procurement prices paid to farmers and, in turn, pass-through the same to consumers.
• Purchasing Limit of Consumer: There’s a limit to how much more the consumer can pay for milk without it causing demand destruction.

What can be the Solution?

• If farmer incomes are to be raised without shrinking domestic demand and eroding the global competitiveness of the Indian dairy industry, the only solution is to reduce the cost of milk production.

How can the Cost of Milk Production be Reduced?

• Improved Breeding and Genetics:Investing in high-yield dairy cattle breeds can increase milk production efficiency.
• Cross-breeding programs aimed at developing more resilient and higher-yielding breeds suitable for Indian conditions can be beneficial.
• Nutrition Management:Providing balanced and cost-effective feed and nutrition to dairy animals can enhance milk yield while reducing input costs.
• Modals for Reducing the cost of Fodder:Amul is putting up a 30-tonnes-per-day Total Mixed Ration (TMR) plant at Sarsa in Anand.
• TMR will contain dry and green fodder, along with concentrates, vitamins and mineral mixtures, in a ready-to-eat mashed form for animals.
• It would save farmers the cost of purchasing and storing fodder separately, and administering it in addition to cattle feed.
• Healthcare and Disease Management:Ensuring proper healthcare and disease control measures for dairy animals can prevent losses due to diseases and improve overall productivity.
• Cooperative Farming and Collective Bargaining:Encouraging small-scale dairy farmers to form cooperatives can help them access resources, infrastructure, and markets more effectively.
• Government Support and Policy Reforms:Government policies that provide subsidies for essential inputs like feed, veterinary care, and equipment can significantly reduce production costs for dairy farmers.
• Research and Development:Investing in research and development aimed at developing innovative and cost-effective solutions for dairy farming challenges can lead to long-term improvements in productivity and cost reduction.

Steps Taken by Government for the Promotion of Dairy Sector in India

• Rashtriya Gokul Mission: It waslaunched in 2014, to conserve and develop indigenous cattle breeds.
• Aim: To enhance the productivity and genetic improvement of indigenous cattle.
• National Programme for Dairy Development (NPDD): NPDD has been in place since 2014 and aims to build or strengthen infrastructure for the production of high-quality milk as well as for the procurement, processing, and marketing of milk and milk products through the State Implementing Agency or State Cooperative Dairy Federation.
• Dairy Entrepreneurship Development Scheme (DEDS):  DEDS is being implemented by the Department of Animal Husbandry, Dairying, and Fisheries to create self-employment opportunities in the dairy industry.
• It provides financial assistance to individuals for setting up small to medium-scale dairy
• The National Bank for Agriculture and Rural Development is carrying out the programme.
• National Animal Disease Control Programme (NADCP): It is a flagship scheme launched in 2019for control of Foot & Mouth Disease and Brucellosis by vaccinating 100% cattle, buffalo, sheep, goat and pig population.
• National Livestock Mission (NLM): The NLM, launched by the Ministry of Agriculture, aims to ensure sustainable development of the livestock sector, including dairy farming.
• It focuses on increasing the productivity of livestock, improving their health, and providing support for fodder and feed resources.

Way Ahead

• Faster vaccination drives to overcome situations like Lumpy skin disease death.
• Robust and effective value chain to overcome the supply chain disruption to maintain the demand for milk and milk products.
• By implementing strategies in a coordinated manner, it’s possible to reduce the cost of milk production in India while improving the livelihoods of dairy farmers and ensuring a sustainable and thriving dairy industry.

General Studies Paper -3

Context: The Reserve Bank of India (RBI) has released a draft Disclosure Framework on Climate-related Financial Risks, 2024 for banks to follow.

About

• The regulated entities i.e., banks are meant to disclose information about their climate related financial risks and opportunities for the users of financial statements.
• It acknowledges the importance of the environment and its long-term impact on organisations and the economy as a whole.

What are Climate-related Financial Risks? 

• The RBI has defined climate-related financial risks as the potential risks that may arise from climate change or from efforts to mitigate climate change, their related impacts and economic and financial consequences.
• It can impact the financial sector through two broad channels i.e., physical risks and transition risks.
• Physical Risks: It refers to the economic costs and financial losses resulting from the increasing frequency and severity of extreme climate change-related weather events.
• Impact on REs: Expected cash flowsto the REs from an exposure may be stressed on the occurrence of a local / regional weather event.
  • Chronic flooding or landslides may present arisk to the value of the collateral that REs have taken as security against loans.
  • Severe weather events may damage a RE’s owned or leased physical propertyand data centers, thereby, affecting its ability to provide financial services to its customers.
• Transition Risks: It refers to the risks arising from the process of adjustment towards a low-carbon economy. 
  • A range of factors influences this adjustment, including changes in climate-related policies and regulations, the emergence of newer technologies, shifting sentiments and behaviour of customers.
  • The process of transition i.e., reducing carbon emissions may have a significant impact on the economy.

About the Framework:

• All India financial institutions, and top and upper layer NBFCs will have to begin to provide information ongovernance, strategy, and risk management strategy from 2025-26 and begin disclosure metrics and targets from 2027-28.
• Banks will be mandated to disclose those climate-related risks which have a bearing on their financial stability.
• The revelation will foster an early assessment of climate-related financial risks and opportunities and also facilitate market discipline.
• Organisations under the Purview:
  • All scheduled commercial banks (excluding local area banks, payments banks and regional rural banks).
  • All Tier -IV primary (urban) and cooperative banks (UCBs).
  • All top and upper layer non-banking financial companies.
• Disclosure by the REs: 
  • Identified climate-related risks and opportunities over short, medium and long term.
  • The impact of climate-related risks and opportunities on their businesses, strategy and financial planning.
  • The resilience of the RE’s strategy taking into consideration the different climate scenarios.

Significance

• There is an urgent need for a better and consistent disclosure framework for regulated entities, without which the financial risks can lead to mispricing of assets and misallocation of capital.
• This essentially led to a standard disclosure framework on climate related financial risks.

General Studies Paper -3

Context: The government approved proposals to set up three semiconductor units in Gujarat and Assam with an estimated investment of Rs 1.26 lakh crore.

Proposed Semiconductors Plants

• A semiconductor fabrication plant will be set up by Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) in Gujarat’s Dholera.
• The Tata Group will also set up a chip assembly plant in Morigaon, Assam at a cost of Rs 27,000 crore.
• CG Power and Japan’s Renesas will also set up a semiconductor plant in Gujarat’s Sanand at an estimated cost of Rs 7,600 crore.

What is a Semiconductor?

• Semiconductors also referred to as ‘chips’ are highly complex products to design and manufacture, providing the essential functionality for electronic devices to process, store and transmit data.
• The chip comprises interconnections of transistors, diodes, capacitors and resistors, layered on a wafer sheet of silicon.

Global Scenario in Chip Manufacturing

• About 70%of the current global manufacturing capacity is confined to South Korea, Taiwan and China, with the US and Japan making up for much of the rest.
• Taiwan and South Korea make up about 80% of the global foundry base for chips.
• Only one company, the Netherlands-based ASML, produces EUV (extreme ultraviolet lithography) devices, without which it is not possible to make an advanced chip.

Challenges

• India’s close allies, like the US and EU, also sense the semiconductor opportunity and have rolled out more lucrative incentive schemes than India.
• Talent pool:While India is the biggest back office for design engineers of all major chip companies, skilled talent that can work on factory floors of a fabrication plant is still hard to come by.
• Research and Development:India currently lacks original research in semiconductor design, where the future of the chip is decided.
• Power supply: Besides, an uninterrupted supply of power is central to the process, with just seconds of fluctuations or spikes causing millions in losses.
• Water intensive: Chip-making also requires gallons of ultrapure water in a single day. This requirement could be a task for the government to provide to factories, compounded also by the drought conditions which often prevail in large parts of the country.

Significance of the Project

• Job Creation:The semiconductor industry is highly labor-intensive, requiring skilled engineers and technicians. Semiconductor manufacturing facilities in India will create many direct and indirect employment opportunities.
• Reduced Dependence on Imports: India currently relies on imported semiconductor chips for various electronic devices. Establishing a domestic semiconductor industry will enhance the country’s self-reliance and resilience in times of geopolitical tensions or disruptions in global supply chains.
• Export Opportunities:With a competitive semiconductor industry, India can export chips and related products to other countries, generating revenue and improving its trade balance.
• Strategic Importance: Semiconductor chips are critical components in various strategic sectors such as defense, aerospace, and telecommunications. Having a domestic semiconductor industry ensures greater control over the supply chain and reduces vulnerabilities to disruptions or external pressures.

Way Ahead

• By establishing a semiconductor industry, India can increase its influence in the global technology landscape.
• India can also attract foreign investment, foster innovation, and stimulate other sectors such as electronics, telecommunications, and information technology. A robust industry will significantly contribute to India’s GDP growth.

General Studies Paper -2

Context: Despite the recently held high meeting between India and Nepal, the consensus over sharing benefits of the Pancheshwar project is not resolved.

About Pancheshwar Project

• PMP is a bi-national hydropower project to be developed in Mahakali River bordering Nepal and India.
• Development of PMP, is a mutual interest project between two countries, and is covered under integrated Mahakali Treaty signed between Nepal and India in 1996.
• The project is aimed at generating around 6,480 MW energy (to be divided equally between two sides), along with water for irrigation of 130,000 hectares of land in Nepal and 240,000 hectares of Indian territory, respectively.

Areas of Differences

• While electricity is divided equally, India gets the lion’s share of irrigation and flood control benefits.
• On the other hand, Nepal  feels water is ‘white gold’ and India should pay Nepal for it.
• India cannot accept this claim as it challenges India’s understanding of other water-based treaties, including the Indus Waters Treaty with Pakistan.

Overview of India – Nepal Relations

• Shared Border:The country shares a border of over 1,850 km with five Indian states – Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand.
• Land-locked Nepal relies heavily on India for the transportation of goods and services and access to the sea is through India.
• The India-Nepal Treaty of Peace and Friendship: Signed in 1950, it forms the bedrock of the special relations that exist between India and Nepal. 
• Nepalese citizens avail facilities and opportunitieson par with Indian citizens in accordance with the provisions of the Treaty.
• Defence Cooperation: India has been assisting the Nepal Army (NA) in its modernisation by supplying equipment and providing training. 
• Both countries conduct Joint Military Exercise SURYA KIRAN’ alternately in India and in Nepal.
• Since 1950, India and Nepal have been awarding each other’s Army Chief with the honorary rank of General.
• The Gorkha regiments of the Indian Army are raised partly by recruitment from hill districts of Nepal. 
• Connectivity and Development Partnership:India has been assisting Nepal in development of border infrastructure through upgradation of 10 roads in the Terai area; development of cross-border rail links and establishment of Integrated Check Posts.
• Water Resources Cooperation: Cooperation in water resources from the common rivers is among the important areas of bilateral relations.
• A three-tier bilateral mechanism established in 2008,to discuss issues relating to cooperation in water resources has been working well.
• Energy Cooperation: India and Nepal have had a Power Exchange Agreement since 1971 for meeting the power requirements in the border.
• India is currently supplying a total of about 600 MW of power to Nepal.
• Trade and Economic: India remains Nepal’s largest trade partner Nepal is India’s 11th largest export destination.
• In FY 2021-22, it constituted 2.34% of India’s exports. Infact exports from India constitute almost 22% of Nepal’s GDP.
• Mahakali River bridge: A MoU was signed between India and Nepal for the  construction of a motorable bridge across the Mahakali River connecting Dharchula  (India) with Darchula (Nepal), under Indian grant assistance.
• Operation Maitri & post-earthquake reconstruction assistance: In the wake of the 2015 earthquake in Nepal, GoI was the first responder and carried out its largest disaster relief operation abroad (Operation Maitri). 
• Cultural Ties:The leaders of the two countries have often noted the age-old ‘roti beti’ relationship, which refers to cross-border marriages between people of the two countries.

Issues between India & Nepal

• Treaty of Peace and Friendship of 1950: It was an effort to “strengthen and develop these ties and to perpetuate peace between the two countries”.
• As time passed, Nepal believed the treaty was “incompatible with national self-respect”.
• Kalapani dispute: The area is in India’s control but Nepal claims the region because of historical and cartographic reasons. The area is the largest territorial dispute between Nepal and India consisting of at least 37,000 hectares of land in the High Himalayas.
• Susta Border dispute: Susta is a disputed territory between Nepal and India. It is administered by India as part of West Champaran district of Bihar.
• Nepal claims the area a part of West Nawalparasi District under Susta rural municipality, alleging that over 14,860 hectares of Nepali land in Susta has been encroached upon by India.
• Political Interference:Nepal has at times accused India of interference in its internal political affairs, particularly during periods of political instability or transition.
• Security Concerns:Both India and Nepal have shared security concerns, including issues related to cross-border terrorism, trafficking, and border security.
• Perception of Unequal Relationship:Some segments of Nepalese society have expressed concerns about what they perceive as an unequal relationship with India, with allegations of economic dependence and a lack of reciprocity in the bilateral relationship.

Way ahead

• The discussion to kickstart the Pancheshwar project will require political consensus and bureaucratic foresight on both sides, which is yet to emerge.
• Despite these challenges and disputes, India and Nepal have historically maintained close ties and continue to engage in dialogue and diplomatic efforts to address bilateral issues.
• Both countries recognize the importance of their relationship and are committed to finding mutually acceptable solutions to their differences while promoting cooperation and friendship for the mutual benefit of their peoples.

General Studies Paper -2

Context: Recently, the Prime Minister of India and Mauritius jointly inaugurated an airstrip, jetty, and 6 other projects to ensure maritime security and connectivity to Mauritius’ Agalega islands.

About the India and Mauritius Relations

• India and Mauritius share a deep and historical bond, with Indian origin people comprising nearly 70% of the island’s population.
• The relationship between the two nations is rooted in shared history, culture, and democratic values.

Historical Ties:

• The first Indians were brought to Mauritius from the Puducherry region in 1729 to work as artisans and masons.
• Under British rule, about half a million Indian indentured workers were brought to Mauritius between 1834 and the early 1900s.
• About two-thirds of these workers permanently settled down in Mauritius.

Diplomatic Relations:

• India established diplomatic relations with Mauritius in 1948, even before the independence of Mauritius.
• India was represented by an Indian Commissioner in British-ruled Mauritius between 1948 and 1968 and thereafter, by a High Commissioner after Mauritius became independent in 1968.

Economic Cooperation:

• India and Mauritius signed a Comprehensive Economic Cooperation and Partnership Agreement (CECPA) in 2021.
• Under the CECPA, India and Mauritius would provide preferential access to a number of items like surgical equipment, medicine, and textile products that would cater to market requirements on both sides.
• Bilateral tradehas been disproportionately in favour of India. (For the FY 2022-2023, Indian exports to Mauritius was USD 462.69 mn, Mauritian exports to India was USD 91.50 mn and Total trade was USD 554.19 mn).
• It has grown by 132% in the last 17 years, from USD 206.76 million in 2005-06 to USD 554.19 million in 2022-23.
• FDI:Cumulative FDI worth USD 161 billion came from Mauritius to India in the two decades from 2000 – 2022 (26% of total FDI inflows into India).
• FDI inflows from Mauritius have dropped from USD 15.72 bn in 2016-17 to USD 6.13 bn in 2022-23, with Mauritius becoming India’s third largest source of FDI.
• Indian Public Sector Undertakings (PSUs) in Mauritius:At present, 11 Indian PSUs are in Mauritius which include Life Insurance Corporation, Indian Oil (Mauritius) Limited, State Bank of India (Mauritius), Rail India Technical and Economic Service (RITES) etc.

Defence Cooperation:

• India is the preferred defence partner of Mauritius for acquiring platforms/equipment, capacity building, joint patrolling, hydrological services, etc.
• Indian defence officers are deputed to the Mauritian Defence Forces. An Indian Navy officer heads the Mauritian National Coast Guard; an Indian Air Force officer commands the Police Helicopter Squadron and an Indian Naval Officer heads the Mauritius Hydrography Services.
• In February 2021, India extended a Line of Creditof USD 100 mn to Mauritius for procuring defence products, under which Mauritius has already sourced a Passenger Variant Dornier aircraft and an Advanced Light Helicopter Dhruv.
• SAGAR:India recalled that it was in Mauritius, during 2015 that India’s maritime cooperation vision of SAGAR – ‘Security and Growth for All in the Region’ was outlined.

Others:

• India has traditionally been the ‘first responder’ for Mauritius in times of crisis, including during the recent Covid-19 and Wakashio oil-spill crisis.
• Mauritius has become the first country to join India’s Jan Aushadhi initiative which will benefit the people of Mauritius by providing better quality Made-in-India generic medicines.
• RuPay cards and UPI connectivity between two countries were established.

Associated Challenges and Concerns

• Tax Treaty Misuse:The Double Taxation Avoidance Agreement (DTAA) between India and Mauritius had been a point of concern due to its potential misuse for illicit activities like money laundering and round-tripping of funds.
• It led to amendments in the treaty in 2016 and the implementation of the General Anti-Avoidance Rule (GAAR) in 2017.
• Chagos Archipelago Dispute:It is an issue of sovereignty and sustainable development before the United Nations.
• In 2019, India voted at the U.N. General Assembly in support of the Mauritian position on the issue.
• Security Concerns:With Mauritius emerging as an important maritime entity in the Indo-Pacific region, security concerns are paramount.
• India and Mauritius have a strong defence partnership, but maintaining and enhancing this partnership in the face of evolving regional dynamics can be challenging.
• Logistical and Bureaucratic:While India and Mauritius have a robust development partnership, the ongoing implementation of various infrastructure projects and the delivery of promised assistance can pose logistical and bureaucratic challenges.

Conclusion

• The relationship between India and Mauritius is multifaceted and has grown stronger over the years. The two nations continue to work together in various fields, including infrastructure, FinTech, culture, and more.
• The special ties between India and Mauritius are a testament to their shared history, cultural affinities, and mutual respect.

General Studies Paper -2

Context: The Law Commission of India has worked out three major Constitutional amendments to set the ground for the ‘One Nation, One Election’ project in 2029.

• The 22nd Law Commission, headed by former Karnataka High Court Chief Justice Ritu Raj Awasthi, is set to recommend the addition of a new chapter on simultaneous polls in the Constitution.
• Currently, Part XV of the Constitution deals with elections. It prescribes the role of the Election Commission and for elections to be based on adult suffrage among other aspects.
• The Commission is likely to recommend insertion of a new chapter, Part XVA, that would make provisions for simultaneous polls.

Recommendations: Three major Constitutional Amendments

• While the law panel has not submitted its report to the government, it has made detailed presentations of its likely recommendations before the high-level committee, headed by former President Ram Nath Kovind.

1. Synchronization of Assembly elections: The Commission’s report is likely to suggest synchronising assembly elections in two stages in the next five years before all states can go to polls simultaneously with the next Lok Sabha elections in 2029.

• Then2029 can be the third election cycle where the Centre, all states, municipal and panchayat elections can be held together.”

2. Sustainability of simultaneous polls: One of the key concerns on simultaneous polls was tackling situations where the mandate results in a hung assembly or when a government falls midway when a no-confidence vote is instituted.

• Sources said that a second Constitutional amendment would deal with “sustainability of simultaneous polls” which would address these concerns.
• It is learnt that the Law Commission’s prescription is to first attempt setting up an all-party “unity” government if a government falls during its five-year tenure.
• “If that is not possible, then the alternative would be holding electionsonly for the term remaining before another cycle of simultaneous polls can be held”.
  • Contesting elections only to form a government for a short term could be a disincentive for political parties to bring down a government.

3. Common voter list: The third Constitutional amendment to be recommended by the law panel would specifically deal with a common voter list.

• Currently in many states, the voter list for the panchayat and municipal elections is different from the one used for Parliament and assembly elections.
• It said a common voter list will ensure every citizen gets the right to exercise his/her franchise for all public bodies.

Idea of Simultaneous Elections in India (One Nation One Election)

• Simultaneous Elections refer to the idea of holding Lok Sabha and State legislative assembly elections together, with the aim of reducing the frequency of elections and their associated costs.
• Simultaneous elections in India to the Lok Sabha and State Legislative Assemblies were held in the years 1951-52, 1957, 1962 and 1967. 
• Thereafter, the schedule could not be maintained and the elections to the Lok Sabha and the State legislative assembly have still not been realigned.
• The Election Commission in its annual report (1983)had recommended that a system should be evolved so that elections could be held simultaneously.
• The Law Commission (170th Report- 1999)stated that we must go back to the past where the elections to Lok Sabha and all the Vidhan Sabha were held simultaneously.
• The 79th Report of the Parliamentary Standing Committee (2015)also favored the idea of the simultaneous elections which was reiterated by a NITI Aayog paper in 2017.

Arguments In Favour of One Nation One Election

• It will reduce the huge expenditure incurred for conducting separate elections every year.
• The problem of frequent elections leads to imposition of MCC over prolonged periods of time which affects the normal governance. Simultaneous elections can overcome such issues.
• Simultaneous elections will free the crucial manpower which is often deployed for prolonged periods on election duties
• The focus on governance will increase, instead of being constantly in election mode.

Arguments Against One Nation One Election:

• Logistical Challenges:All states and the central government face massive logistical challenges including coordinating the schedules, resources etc.
• Disadvantage for regional parties:It may help the dominant national party or the incumbent at the Centre at the cost of regional parties and regions issues can be overshadowed by the national issues.
• Financial Implications:Conducting elections is expensive and requires significant resources like manpower.
• Issue of dissolution:Prematurely dissolution on account of a vote of no-confidence becomes difficult to deal with in case simultaneous elections are there.

Way Ahead

• Considering the fact that frequent elections led to a huge burden on human resources and affected the development process, a sustained debate is requiredon the subject.

All political parties need to arrive at a consensus on the issue of simultaneous elections before taking any step towards it.