General Studies Paper 3

Context: 

• UNEP released a new report – Bracing for Superbugs: Strengthening environmental action in the One Health response to antimicrobial resistance.
• It provides evidence that the environment plays a key role in the development, transmission, and spread of Anti-Microbial Resistance (AMR). 

About AMR:

• Antimicrobials are agents intended to kill or inhibit the growth of microorganisms. They include antibiotics, fungicides, antiviral agents, and parasiticides.
• AMR occurs when microorganisms such as bacteria, viruses, parasites, or fungi become resistant to antimicrobial treatments to which they were previously susceptible.

Key findings of the report:

• Up to 10 million deaths could occur annually by 2050 due to antimicrobial resistance (AMR), on par with the 2020 rate of global deaths from cancer.
• Pollution in key sectors of the economy contributes to the development, transmission, and spread of AMR.
• AMR’s economic toll could result in a GDP drop of at least USD 3.4 trillion annually by 2030,pushing 24 million more people into extreme poverty
• Microorganisms (particularly bacteria) can acquire resistance following contact with resistant microorganisms.
• AMR challenges are linked to the  triple planetary crisis of climate change, biodiversity loss, and pollution and waste.
• Three key sectors of AMR development and spread in the environment: Pharmaceuticals and other chemical manufacturing, agriculture and food production, and Healthcare.  

Suggestions in the report:

• Create robust and coherent national-level governance, planning, regulatory and legal frameworks.
• Increase global efforts to improve integrated water management and promote water, sanitation, and hygiene to limit the development and spread of AMR.
• Increase integration of environmental considerations into AMR National Action Plans.
• Establish international standards for what constitutes a good microbiological indicator of AMR
• Environmental monitoring and surveillance
• AMR requires a  One Health  response that recognizes that the health of people, animals, plants, and the environment are closely linked and interdependent.

General Studies Paper 3

Context:

The RBI had recently released its 26th Financial Stability Report (December 2022). In the report, the RBI remarked that the credit to the Microfinance sector has grown at a steady pace. However, the report highlighted the building stress levels in the loans portfolio (i.e., bad loans are increasing). The share of loans overdue by more than 90 days has risen to 14% in September 2022, from 12% in March 2022. Microfinance is considered a potent tool to ensure balanced and inclusive growth, especially by providing access to credit to the rural citizens and small entrepreneurs. The rising delinquency (Being delinquent refers to a situation wherein the borrower is overdue on a loan payment by a certain number of days) in Microfinance is indicative of the challenges faced by the sector. The Government has been supporting the sector through various initiatives. The Government has to step in to address the issues faced by the sector.

Meaning of Microfinance:

• Micro Finance is defined as ‘provision of credit and other financial services and products of very small amounts to the poor in rural, semi urban or urban areas, for enabling them to raise their income levels and improve living standards‘. It is an economic tool designed to promote financial inclusion which enables the poor and low-income households to come out of poverty.

Components of Microfinance

• Micro credit: Micro credit is the extension of very small loans to borrowers who typically lack collateral, steady employment or income stream and verifiable credit history. It is designed to support small-scale entrepreneurship, alleviate poverty, empower women and uplift the poor social class by extension. Microcredit is delivered through a variety of institutional channels including Scheduled Commercial Banks (through Business Correspondents), Regional Rural Banks (RRBs), Cooperative Banks, Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs).
• Micro Insurance: It is the insurance with low premiums and low coverage. Micro-insurance covers low income/net-worth persons and transactions are of low value. Like normal insurance, it can cover wide range of risks including damage to crops and livestock.
• Micro Saving: Micro saving is targeted at people with low incomes and low savings. They are similar to saving accounts, but designed for small deposits. Typically, the limit of minimum deposit/balance is low and there are no service charges.
• Microfinance Institutions: Institutions providing Microfinance services are called Microfinance Institutions (MFIs). A large number of organisations with varied size and legal forms offer Microfinance services. The MFIs exist as separate institutions because of the unique features of Microfinance like high transaction costs, short duration of loans, high frequency of repayment/instalments, absence of collateral and relatively higher rate of default.

Types of Microfinance Institutions in India

• Joint Liability Groups: JLGs are informal group of 4-10 people that seek mutually assured loans. Agriculture-related loans are typical. Farmers, rural labourers, and renters are among the debtors in this category. JLG members are equally responsible for loan repayment.
• Self-Help Groups: An SHG is a group of people in similar socioeconomic situations who come together to help each other. They are self-governed. Members come together (often for a limited time) to form a shared fund for their mutual business requirements. This type of cooperative financing does not necessitate the use of collateral. In addition, borrowing rates are often cheap. Several banks have formed partnerships with SHGs in order to increase financial inclusion in the country’s rural areas e.g., the NABARD-SHG linkage program, allows numerous self-help groups to borrow money from banks if they can show that their borrowers have made regular payments.
• Regional Rural Bank Model: The main purpose of this strategy is to boost the rural economy. They have been created to serve rural areas with basic banking and financial services.
• Cooperatives: Rural cooperatives were established at the time of India’s Independence. Through the cooperatives, resources of the poor are pooled and financial services are made available.
• MFIs, based on their set-up, are regulated as NBFCs by the RBI, or through Companies Act, 2013.

Status of Microfinance

• According to NABARD, the SHG-Bank Linkage Programme, covers 14.2 crore families through 119 lakh SHGs (87% of which are women) with savings deposits of INR 47,240.48 crore (March 31, 2022).
• NABARD has sanctioned a cumulative grant assistance of INR 255.81 crore to Joint Liability Groups Promoting Institutions (JLGPIs) for promoting 12.77 lakh JLGs (March 31, 2022). There are 188 lakh JLGs of which 54 lakh were promoted during FY 2021-22 (as against 41 lakh promoted in FY 2020-21). During FY 2021-22, loan disbursed was INR 112,772.75 crore.
• According to NABARD, Microfinance operations in India are spread across 595 districts of 28 States and 5 Union Territories. As on 31 March 2022, the combined micro credit portfolio of 225 lenders is INR 262,599 crores.

Benefits of Microfinance

• Credit to Low-Income Borrowers: Microfinance provides credit to the poor people with low income and assets who face difficulty in accessing finance from formal banking institutions. They help in providing funds to small entrepreneurs in poor regions.
• Collateral-Free Loans: No collateral is required for Microfinance loans. This helps persons with little or no assets to access credit.
• Financial Inclusion: Microfinance helps those sections of population who are unable to access credit from Banks/formal institutions.
• Income Generation: Loans provided by MFIs help small entrepreneurs set-up/expand/scale-up their operations. This enables them to improve their income.
• Women Empowerment: Microfinance facilities have proven to be vital in providing financial independence to women and thus empowering them. As noted by NABARD Report, SHG-Bank Linkage Programme has benefited 119 lakh SHGs, 87% of which are women. Access to finance will help increase women-led MSMEs.
• Rehabilitation: Microfinance is able to provided access to finance in naxal areas as well. It has thus helped in rehabilitation of the conflict-affected people.
• Rural Development: Microfinance boosts economic activities in the rural area and thus aids in rural development. It helps create livelihood opportunities as well.
• Encourage Self-Sufficiency and Entrepreneurship: MFIs can provide much-needed funds to an individual for the establishment of a new business that requires small investment and offers long-term profit. Thus they promote entrepreneurship and self-sufficiency among the lower-income population.

Challenges associated with Microfinance

• Financial Illiteracy: Financial illiteracy leads to lack of awareness about various MFIs, and the services the offer. This makes the poor people reluctant to approach the MFIs.
• Inability to Generate Funds: MFIs face difficulty to raise sufficient funds as they are generally not ‘for-profit’. This restricts their access to funds from private equity investors or other market-based avenues of funding.
• Heavy Dependence on Banks: MFIs are dependent on borrowing from banks. For most MFI’s funding sources are restricted to private banks. Funds available from these banks are typically for short term, generally 2 years. Moreover, Banks tend to disburse loans at the end of financial year to meet the targets. This can create issues for MFIs if there is delay in repayment of loans by borrowers.
• Weak Governance: Many MFI’s are not willing to convert to a corporate structure; hence there is lack of transparency. This also limits their ability to attract capital. MFI’s face challenge to strike a balance between social and business goals.
• Interest Rate: Some MFIs charge high interest rates, which the poor find difficult to pay. MFIs are private institutions and do not get any subsidized credit for their lending activities. Thus they tend to charge higher interest rate.
• Regional Imbalances: There is unequal geographical growth of MFIs and SHGs in India. About 60% of the total SHG credit linkages in the country are concentrated in the Southern States. In poorer regions like in Jharkhand, Bihar etc. where the proportion of the poor is higher, the coverage is comparatively lower. This could be attributed to lack of State government support, NGO concentration and public awareness

Steps have been taken to promote Microfinance in India

• Government Programmes: (a)SHG-Bank Linkage Programme (SHG-BLP): This channel was initiated by NABARD in 1992. This model incentivises women to unite together to form a group of 10-15 members. Women belonging to financial backward classes contribute by giving their individual savings to the group at regular intervals. Loans are provided to the members of the group by their contributions; (b) Micro Enterprise Development Programme (MEDPs): The programme enables SHG members to be up-skilled to take up income generating livelihood activities. The main objective of the programme is to enhance the capacities of participants through appropriate skill up-gradation in existing or new livelihood activities in farm or non-farm activities. It helps enrich knowledge of participants on enterprise management, business dynamics and rural markets; (c) Livelihood and Enterprise Development
• Programme (LEDP): It was initiated on a pilot basis in 2015 with a view to create sustainable livelihoods among matured SHG members and to obtain optimum benefit from skill up-gradation. LEDP is a holistic intervention mechanism conceived to take care of the entire ecosystem required for livelihood promotion in both farm and off-farm activities. It is implemented through cluster-based approach within contiguous villages. It has a provision for intensive training for skill building, refresher training, backward-forward linkages, handholding and escort support for credit linkage; (d) Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): It implements the credit guarantee scheme for Micro and Small Enterprises (MSEs). It has added MFIs to the list of member lending institutions (MLIs).
• Financial Support by NABARD and SIDBI: (a)NABARD supports MFIs in their formative years (as NGO-MFIs) with grant support and Revolving Fund Assistance (RFA). NABARD had also created the Micro Finance Development and Equity Fund (MFDEF) in 2006 to help a number of MFIs with quasi-equity and subordinated debt instruments; (b) SIDBI has aided the growth of MFIs through its SIDBI Foundation for Micro Credit (SFMC). The India Microfinance Equity Fund (IMEF) of SIDBI has also supported MFIs, especially the medium and smaller ones with equity and quasi-equity. Since IMEF had similar function as MFDEF, it (MFDEF) was withdrawn in 2013; (c) MUDRA: Support to Microfinance sector was scaled up by Government of India by setting up the Micro Units Development & Refinance Agency Ltd (MUDRA) in 2015. It is an NBFC that focuses on micro-enterprises, extending financial support to MFIs for on-lending to individuals/groups/JLGs/SHGs.
• Regulatory Initiatives: (a)Y H Malegam Committee: It was set-up in the wake of AP Microfinance crisis in 2010. It was constituted by the RBI to study issues and concerns in the Microfinance sector; (b) Introduction of Regulations for NBFC-MFIs: Based on the recommendations of the Malegam Committee, RBI introduced a comprehensive regulatory framework for NBFC-MFIs in December 2011. The regulations prescribed eligibility criteria for Microfinance loans linked to core features of Microfinance i.e., lending of small amounts to borrowers belonging to low-income groups, without collateral, and with flexible repayment schedules; (c) Regulatory Framework for Microfinance Loans: RBI has implemented Regulatory Framework for Microfinance Loans, effective from April 1, 2022, to update Microfinance regulatory policy. This will create regulatory parity between Regulated Entities (RE) that provide Microfinance, harmonise regulations to protect customers from over-indebtedness, and define Microfinance. Microfinance loans are now collateral-free loans for households having annual income up to INR 3 lakh.

Way forward:

• Regulation: The Microfinance sector has expanded a lot in the last 2 decades. Hence there is a need for a comprehensive regulatory framework for the sector, instead of piecemeal and reactive regulatory initiatives.
• Interest Rate Transparency: MFIs are employing different patterns of charging interest rates and a few are also levying additional charges. MFIs should transparently inform the borrowers regarding the interest rate charged on the loans.
• Encourage Microfinance Penetration: Encouraging MFIs for opening new branches in areas of low Microfinance penetration by providing financial assistance will increase the outreach of the Microfinance. This will increase rural penetration of Microfinance.
• Expand Product Range: MFIs should provide complete range of products including credit, savings, remittance, financial advice and non-financial services like training and support. This will enable the people from underserved access all financial services.
• Use of Technology: MFIs should use new technologies, IT tools, and applications to reduce operational costs.
• Different Sources for Raising Funds: In the absence of sufficient finances, the reach of MFIs becomes limited. MFIs should look for other sources for funding their loan portfolio e.g., by converting to for-profit company (NBFC).

Conclusion

• The Microfinance sector has played an important role in ensuring inclusive and balanced development. Yet the benefits of Microfinance have been limited to some regions. Moreover, the sector faces issue of rising bad loans along with several operational challenges for the MFIs. There is a need for comprehensive regulation of the sector to make it more inclusive and sustainable.

General Studies Paper 3

Context:

• Recently, Ladakhi innovator and engineer Sonam Wangchuk completed his five-day “climate fast”. The fast was held by Mr. Wangchuk in an effort to draw the attention of Indian leaders to the region’s fragile ecology and to secure its protection under the Sixth Schedule of the Constitution.

Issue of Ladakh’s fragile Ecology

• About:
  • Ladakh and the Himalayas form the‘third pole’ of the world and are among its few frozen freshwater sources.
  • The Himalayas, along with all glaciers and river basins, are also called the “water tower of Asia”.
  • People of the region depend on glaciers to fulfill their water needs.
• Melting glaciers of Ladakh:
  • Ladakh is a cold desert and extremely sensitive to climate change.
  • Glaciers in Ladakh have been melting at an alarming rate.
  • According to a study published in 2021, glaciers in the Pangong region retreated around 6.7% between 1990 and 2019.
• The melting of glaciers has the following effects on the lives of Ladakh’s people: 
  • Water scarcity: 
    • They lose potable water;
    • Agriculture practices specific to the region are threatened; and
    • Sustainable practices that support life in the region, like surviving on a minimal quantity of water, are slowly eroded.
  • Loss of livelihood and culture:
    • Loss of sustainable practices due to scarcity of water may also affect the livelihoods of locals and their cultural heritage, and force them to migrate.
  • Loss of biodiversity: 
    • A change in the ecological balance of Ladakh will also impact the biodiversity of the area.
    • The flora and fauna of Ladakh are highly evolved to survive in harsh climatic conditions and will be threatened due to changes in the local ecosystems.
  • Collapsing ecosystem:
    • Even the slightest disturbances in an ecosystem as fragile as Ladakh can lead to the collapse of the whole ecosystem
  • Potential challenges:
    • Excessive rainfall:
      • According to experts, it is possible climate change will lead to excessive rainfall in Ladakh by around 2045 due to global warming.
      • An increase in temperature has a direct impact on precipitation in an area, which changes agriculture practices. This eventually affects food security.
    • Uncontrolled development:
      • Unabated development in sensitive areas like Ladakh, without keeping in mind the sustainable practices that have supported life under extreme conditions, will eventually lead to disruption of the area’s ecology.
      • It may also lead to land subsidence like we recently witnessed in Joshimath since Ladakh is even more fragile than Chamoli district.

Ladakh’s demand of Sixth Schedule

• After its special status was removed, several political groups in Ladakh have been demanding that land, employment, and the cultural identity of Ladakh, should be protected under the Sixth Schedule.

Issues faced by Ladakh:

• No decentralization of power:
  • There had been four MLAs from the region in the erstwhile J&K Assembly; the administration of the region is now completely in the hands of bureaucrats.
  • To many in Ladakh, the government now looks even more distant than Srinagar.
• Changed domicile policy in Jammu and Kashmir: 
  • Also, the changed domicile policy in Jammu and Kashmir has raised fears in the region about its own land, employment, demography, and cultural identity.
• Limited Finances:
  • The UT has two Hill councils in Leh and Kargil, but neither is under the Sixth Schedule.
  • Their powers are limited to collection of some local taxes such as parking fees and allotment and use of land vested by the Centre.

Recommendations:

• Recommendation of the National Commission for Scheduled Tribes:
  • In September 2019, the National Commission for Scheduled Tribes recommended the inclusion of Ladakh under the Sixth Schedule. 
    • The Commission took note of the fact that the newly created Union Territory of Ladakh is predominantly a tribal region in the country.
  • Report highlights of the Parliamentary Standing Committee:
    • The Parliamentary Standing Committee on Home Affairs recently tabled a report in the Rajya Sabha.
    • The report stated that, according to the 2011 Census, the tribal population in the Union Territory of Ladakh is 2,18,355, that is 79.61% of the total population of 2,74,289.
    • Special Status:
      • The committee recommended that special status may be granted to the Union Territory of Ladakh considering the developmental requirements of the tribal population.
    • Examining the possibility of fifth or sixth Schedule: 
      • The Committee further recommends that the possibility of including Ladakh in fifth or sixth Schedule may be examined.

General Studies Paper 2

Context:

• India’s External Affairs Minister recently held wide-ranging talks with visiting Canadian Foreign minister.
• Both nations reviewed the progress in bilateral relations,which are anchored in the following:
  • Shared democratic values,
  • Growing economic linkages,
  • Security cooperation,
  • Mobility of students and professionals and
  • Strong people-to-people ties.
• Deepening collaboration & EPTA:
  • Both sides expressed interest in deepening collaboration across domains and looked forward to the Early Progress Trade Agreement (EPTA).
• India’s significance for Canada:
  • India’s economic and population growth are driving demand for education, health services, food, critical minerals and green infrastructure.
  • These are all sectors of Canadian strength and Canada is looking forward to grasping these opportunities.

India-Canada Bilateral Relations

• About:
  • India established diplomatic relations with Canada in 1947.
  • Prime Minister of India’s visit to Canada in April 2015 elevated the bilateral relation to a strategic partnership. 
  • In recent years, both countries have been working to enhance bilateral cooperation in a number of areas of mutual importance.
  • Bilateral Mechanisms:
    • Both sides pursue bilateral relations through the dialogue mechanisms such as Ministerial level- Strategic, Trade and Energy dialogues; Foreign Office Consultations; and  other sector specific joint working groups (JWG).
  • Commercial relations:
    • An annualised Trade Ministers dialogue has been institutionalised to review trade and economic relations.
    • Both sides are engaged in technical negotiations for a Comprehensive Economic Partnership Agreement (CEPA) including trade in goods, services, investment, trade facilitation etc.
    • Major Items of Indian Exports are: 
      • Medicines, Garments, diamonds, chemicals, gems and jewellery, petroleum oils, made-up, sea food, engineering goods, marble and granite, knitted garments, rice, electric equipment, plastic products, etc.
    • Major items of Canada’s export to India are: 
      • Pulses, fertilizers, newsprint, aircrafts & aviation equipment, diamonds, copper ores and concentrates, bituminous coal, wood pulp, nickel, unwrought aluminum, asbestos, god, cameras, lumber, ferrous waste, etc.
    • Nuclear Cooperation:
      • Indo-Canadian relations deteriorated in the wake of India’s Smiling Buddha nuclear test of May 1974 when the Canadian government severed bilateral nuclear cooperation with both India and Pakistan.
      • However, in June 2010, a Nuclear Cooperation Agreement (NCA) with Canada was signed and came into force in September 2013.
        • The Appropriate Arrangement (AA) for the NCA was signed in March 2013, under which a Joint Committee on Civil Nuclear Cooperation was constituted.
      • Science and Technology: 
        • Indo-Canadian Science and Technology cooperation has been primarily focussed on promoting Industrial R&D which has potential for application through development of new IP, processes, prototypes or products. 
          • Canada was a partner country for the Technology Summit 2017.
        • Department of Biotechnology under IC-IMPACTS program implements joint research projects in health care, agri-biotech and waste management.
        • The Department of Earth Science and Polar Canada has started a programme for the exchange of knowledge and scientific research on Cold Climate (Arctic) Studies.
      • Space: 
        • India and Canada have been pursuing successful cooperative and commercial relations in the field of Space since the 1990s mainly on space science, earth observation, satellite launch services and ground support for space missions.
        • ISRO and Canadian Space Agency (CSA) signed two MOUs in the field of exploration and utilisation of outer space in October 1996 and March 2003.
        • ANTRIX,the Commercial arm of ISRO, has launched several nanosatellites from Canada. 
        • ISRO in its 100th Satellite PSLV launched on 12 January 2018, also flew the Canadian first LEO satellite, from the Indian spaceport  Sriharikota, Andhra Pradesh.
      • Security and Defence:
        • India and Canada collaborate closely in international fora, particularly through the UN, Commonwealth and G-20.
        • Defence ties have been expanding with mutual ship visits.
        • There is robust cooperation on counter terrorism issues, particularly through the framework of the JWG on Counter-Terrorism.
      • Agriculture:
        • The bilateral MoU on agriculture cooperation was signed at the federal level in 2009.
        • The first meeting of the JWG set under this MoU was held in New Delhi in 2010, which led to the creation of three sub-groups on knowledge exchange in emerging technologies; animal development and agricultural marketing. A Joint Working Group for Pulses has been set up separately.
      • Education:
        • Education is a key area of mutual interest. Recently India became the top source of foreign students studying in Canada.
        • The MoU on Higher Education (2010) with Canada was renewed in February 2018.
      • People-to-People ties:
        • Canada hosts one of the largest Indian diasporas in the world, numbering 1.6 million  (PIOs and NRIs) which account for more than 4% of its total population. The diaspora has done commendably well in every sector in Canada. In the field of politics, in particular, the present House of Commons (total strength of 338) has 22 Members of Parliament of Indian origin.
      • Cultural Exchanges: 
        • Canada was the Country of Focus at the48th International Film Festival of India held in Goa in November 2017.
        • There is also an India – Canada Coproduction Agreement in films.
          • Diwali has been celebrated on Parliament Hill for the last 18 years.
        • Cooperation in COVID-19 Pandemic:
          • Repatriation flights: Special charter flights were operated by the Canadian High Commission and facilitated by India to evacuate stranded Canadian nationals from India.
          • Supply of medicines:Export of a total of 12.34 crore paracetamol tablets, 5 crore Hydroxychloroquine tablets and 3510 kgs of Hydroxychloroquine Sulphate USP (API); and  10 Million eye shields with face masks were approved and shipped to Canada.

Challenges

• Sikh extemism:
  • Sikhs constitute a significant proportion of the Indian diaspora, they make up less than one percent (a little over 500,000) of Canada’s total population.
  • The issue of Sikh separatist groups operating in Canada has become a growing source of tension between India and Canada.
  • While Sikh militancy has largely died down in India, concerns remain about the revival of the Khalistan movement.
  • Despite this, the Sikh diaspora commands a reasonable influence in Canada’s federal politics, specifically in the provinces of British Columbia and Ontario.
• India’s structural impediments: 
  • India still has to overcome structural impediments such as complex labour laws, market protectionism, and bureaucratic regulations.
• Inadequate trade:
  • While India–Canada economic relations have made some progress, Canada remains an insignificant trading partner for India.

Way ahead

• India-Canada relations have struggled to prosper, despite the two countries sharing various complementarities such as their democratic character and association in the Commonwealth.
• Even so, India’s economic potential, including the investment opportunities it offers, has led Canada to periodically review the economic dimension of this bilateral relationship in its India policy.
• India must foster a deeper understanding of Canada and the potential it holds for India.

General Studies Paper 3

Context:

• Just Energy Transition Partnership (JET-P)is emerging as the key mechanism for multilateral financing by developed countries to support an energy transition in developing countries.
• This has taken on particular significance following the insertion of the phrase ‘phase-down’ of coal in the Glasgow Pact. After South Africa, Indonesia, and Vietnam, India is considered the next candidate for a JET-Partnership and India’s G-20 presidency could potentially be an opportune moment to forge a deal.
• However, India must develop a coherent domestic Just Energy Transition (JET) strategy in order to negotiate a financing deal that addresses its unique set of socio-economic challenges.
• India’s initial JET-P negotiations last year reportedly stalled over coal ‘phase-down’ and how to operationalize India’s just transition. The emphasis by developed countries on coal phase-down, without adequate attention to country context, disregards the crucial difference in energy transition between industrialised and emerging economies.

Just Energy Transition:

• Just Energy Transition refers to the shift from reliance on non-renewable, fossil fuel-based energy sources to renewable,clean energy sources in order to mitigate the impacts of climate change and promote sustainability.
• The transition to a just energy system seeks to ensure that access to energy is equitable and benefits all members of society,rather than primarily benefiting corporations and the wealthy.
• This includes promoting renewable energy sources such as wind and solar, as well as energy efficiency measures and the development of energy storage solutions.
• Among the three JET-P deals signed so far, only South Africa’s deal mentions a ‘just’ component– funding reskilling and alternative employment opportunities in the coal mining regions.
  • The other two JET-Ps (Indonesia and Vietnam) are focused on mitigation finance for sector-specific transitions.

Issues with the Just Energy Transition:

• Affect Near-term Fossil-Dependent Jobs:
  • The transition to a more sustainable energy mix can impact workers who are currently employed in the fossil fuel industry.
  • The shift away from fossil fuels may result in job losses, which can be disruptive for affected communities and workers.
• Disrupt Forms of Future Energy Access:
  • The transition to a cleaner energy mix may disrupt traditional forms of energy access, particularly in developing countries where access to reliable electricity remains limited.
  • The cost and infrastructure requirements of new energy sources,such as wind and solar power, may be challenging to implement in areas with limited resources.
• Shrink the State’s Capacity to Spend on Welfare Programmes:
  • As the government invests in new energy infrastructure and technology, there may be less funding available for programs such as healthcare, education, and housing assistance.
  • This can result in reduced support for vulnerable populations and potentially worsen existing socio-economic disparities.
• Cost:
  • Despite the long-term benefits, the initial cost of transitioning to renewable energy can be higher, making it a challenge for some communities, particularly those with limited financial resources.
• Energy Storage:
  • Renewable energy sources, such as wind and solar, are not always available and must be stored for use during times when the sun isn’t shining, or the wind isn’t blowing.
• Energy Infrastructure:
  • Significant investments in energy infrastructure are needed to support the transition to renewable energy sources.

What are the Related Steps taken by India?

• India has signalled a commitment to clean energy with ambitious targets like 500GW of non-fossil, including 450 GW Renewable Energy (RE) capacity addition and 43% RE purchase obligation by 2030.
  • These targets are supported through complementary policy and legislative mandates(Energy Conservation (Amendment) Act), missions (National Green Hydrogen Mission), fiscal incentives (production-linked incentives) and market mechanisms (upcoming national carbon market).
• Net Zero Target:
  • India has set itself an ambitious long-term goal of reaching net zero emissions by 2070.
  • In August 2022, India updated its Nationally Determined Contributions (INDC)under the Paris Agreement to reflect its aim of achieving 50% cumulative electric power installed capacity from non-fossil fuel based energy sources by 2030
• Energy Conservation Amendment Bill, 2022:
  • In August 2022, the Lok Sabha passed the Energy Conservation Amendment Bill, 2022which aims to mandate the use of non-fossil fuel sources including green hydrogen, green ammonia, biomass and ethanol for energy and feedstock in industries.
  • The Bill also gives the power to the Central Government to establish carbon markets.

What should be India’s Strategy for a Fair Energy Transition?

• Acceleration in RE Deployment Rates:
  • To accelerate RE deployment that can have significant developmental co-benefits, a low-hanging option is shifting energy demand patterns in ways that enable faster RE capacity addition:solarisation of agricultural electricity demand; electrification of diesel-powered Micro, Small and Medium Enterprises (MSMEs) and decentralised RE for residential cooking and heating.
  • Stimulation of energy demand through rural productivity enhancement will further aid RE acceleration as well as help to address the rural-urban economic divide, create rural jobs, and thereby address inter-generational and spatial inequities.
• Domestic Manufacturing of Clean Energy Components:
  • Domestic manufacturing of clean energy components is critical to sustain a JET, build energy self-sufficiency, and tap the green jobs promise of 21st century energy.
    • The challenge is in achieving cost competitiveness (Indian components are 20% costlier than Chinese components) and giving preference to domestic components without addressing cost competitiveness may slow down the pace of deployment.
  • The way around this is to negotiate access to markets outside India as part of a JET-Partnership,to reduce the cost gap through economies of scale.
• Re-aligning the Current Use of Coal Resources:
  • The current use of coal resources needs to be re-aligned to enhance efficiency until the phase-down period.
  • An alternative solution could be to optimize coal-fired power plants near coal mines,rather than positioning them according to energy demand in different states.
    • This would enable coal to be used more efficiently because transportation of coal is more energy-intensive than transmission of electrons (electricity), and also lead to fewer emissions.
    • It would also lead to cheaper power, as transportation accounts for one-third of the cost of coal for power plants;the resultant savings could also help finance much needed emission control retrofits.
    • It would indirectly reduce emissions due to more efficient use of coal.

General Studies Paper 2

Context:

• Budgetary allocation for the Union Ministry of Minority Affairs decreased by 38% in 2023-24 compared to 2022-23. The major decline was in the allocation for pre-matric scholarships, free coaching for minorities, skill development and livelihoods programmes (including USTTAD scheme, Nai Manzil and Scheme for Leadership Development of Minority Women) .
• Also, allocation for the Umbrella Programme for Development of Minorities,which includes the Pradhan Mantri Jan Vikas Karyakram and Education Scheme for Madrasas and Minorities,  fell from ₹1810 crore to ₹610 crore, which is a dip of 2% in allocation.

Major Schemes in India for the Welfare of Minorities:

• Pre-Matric Scholarship Scheme, Post-Matric Scholarship Scheme, Merit-cum-Means based Scholarship Scheme:For educational empowerment of students, through  Direct Benefit Transfer (DBT)
• Naya Savera- Free Coaching and Allied Scheme:The Scheme aims to provide free coaching to students/candidates belonging to economically weaker sections of minority communities for preparation of entrance examinations of technical/ professional courses and competitive examinations.
• Padho Pardesh: Scheme of interest subsidy to students of economically weaker sections of minority communities on educational loans for overseas higher studies.
• Nai Roshni:Leadership development of women belonging to minority communities.
• Seekho Aur Kamao:It is a skill development scheme for youth of 14 – 35 years age group and aiming at improving the employability of existing workers, school dropouts etc.
• Pradhan Mantri Jan Vikas Karyakram (PMJVK):It is a Scheme designed to address the development deficits of the identified Minority Concentration Areas.
  • The areas of implementation, under PMJVK, have been identified on the basis of minority population and socio-economic and basic amenities data of Census 2011and will be known as Minority Concentration Areas.
• USTTAD (Upgrading the Skills and Training in Traditional Arts/Crafts for Development):Launched in May 2015 aims to preserve the rich heritage of traditional skills of indigenous artisans/craftsmen.
  • Under this scheme HunnarHaats are also held all over the country to provide a nation-wide marketing platform to Minority artisans & entrepreneurs and to create employment opportunities.
• Prime Minister-Virasat Ka Samvardhan (PM Vikaas):New PM Vikas has been added to the Ministry of Minority Affairs’ Budget in 2023.
  • It is askilling initiative focussing on the skilling, entrepreneurship and leadership training requirements of the minority and artisan communities across the country.
  • The scheme is intended to be implemented inconjunction with the ‘Skill India Mission’ of the Ministry of Skill Development & Entrepreneurship and through integration with the Skill India Portal (SIP).

General Studies Paper 2

Context:

• More than 2,000 people have been arrested in a state wide crackdown on child marriages that have taken place in the state of Assam.

Data on child Marriage:

• UN estimates suggest that 1.5 million girls get married before they turn 18 in India.
• According to the 2011 census, 44 per cent of women in Assam were married before the age of 18. The figures for Rajasthan, Bihar, and Madhya Pradesh were 47 per cent, 46 per cent, and 43 per cent, respectively.

Historical Perspective on Child Marriage:

• Ancient India

• Manusmritis: It says that if the father fails to marry off his daughter within three years of her attaining puberty, she can find a spouse on her own.
• Medhatithi, one of the oldest and earliest commentators on the Manusmriti, eight years is the right age for a girl to be given in marriage
• The Rig Veda mentions garbhadhan– attaining the wealth of the womb. It is the first of the 16 samskaras a Hindu is expected to perform.
• The Greek traveller Megasthenes (350-290 BC) has written that he was told that the women of the Pandian kingdom in South India bear children at six years of age. About seven centuries later, the Persian polymath, Al Biruni, wrote that child marriages were rampant in India.

• Modern India:

• The colonial state: The Age of Consent Acts of 1861 and 1891 brought in reform in conjugal rights. The 1861 Act laid down 10 years as the minimum age for sexual intercourse. The Hindu intelligentsia opposed raising this age to 12 on the grounds that it violated norms related to garbhadhan.
• Rukmabai case gave new impetus to the campaign of social reformers like M G Ranade and Behramji Merwanji Malabari. Rukmabai had refused to solemnize her marriage, which had taken place when she was 11.

• Post-Independence:

• At the time of India’s independence, the minimum marriageable age stood at 15 years for females and 18 years for men.
• In 1978, the government increased it to 18 for girls and 21 for men.
• Years later, in 2008, the Law Commission came out with a report which stated that the minimum marriageable age for both men and women should be 18 years of age, as both are considered eligible to vote as citizens at the time.

Laws present to prevent Child Marriage:

• The POCSO Act, of 2012 criminalizes sex between a minor and an adult. The law does not recognize a minor’s consent as valid. Sexual assault under POCSO is a non-bailable, cognizable offence.
  • Section 19 of, the POCSO Act imposes a “mandatory reporting obligation” which requires every person who suspects or has knowledge of a sexual offence being committed against a child must report it to the police or the Special Juvenile Police Unit.
• The Prohibition of Child Marriage Act 2006, says that child marriages are illegal but not void.Instead, they are voidable at the option of the minor party, in the scenario that the minor petitions the court to declare the marriage void. The Act stipulates 18 years as the minimum marriageable age for women, while for men it is 21 years.

• The punishment also extends to anyone who performs, conducts, directs, or abets any child marriage.

Central government’s stand:

• In 2021, the Central government sought to introduce the Prevention of Child Marriage (Amendment) Bill 2021 to raise the manageable age for women across all religions, from 18 to 21 years. However, the Parliament panel examining this is yet to submit its report.
• The establishment of the Jaya Jaitly Committee in June 2020,by the Ministry of Women & Child Development, submitted a report stating that the marriageable age for women should be increased from 18 to 21 years of age, in light of factors like reproductive health, education, etc.

Modern international laws and conventions on Child Marriage:

• The UN Convention on Consent to Marriage,
• Minimum Age for Marriage and Registration of Marriages (1962),
• The UN Convention on the Elimination of All Forms of Discrimination against Women (1979)
• Beijing Declaration (1995)

General Studies Paper 3

Context:

• A Fact Sheet prepared by TRAFFIC, a global wildlife trade monitoring organisation has revealed  the issue of Red Sanders illegal trade. TRAFFIC was established in 1976 byWWF and IUCN as a wildlife trade monitoring network to undertake data collection, recommendations on wildlife trade.

About

• The CITES trade database has recorded 28 incidents of Red Sanders confiscation, seizure, and specimen from the wild being exported from India.
• It highlights the threats of rampant illegal logging and smuggling of trees especially in Chittoor, Kadapa, Nellore & Kurnool districts in Andhra Pradesh.
• China remains the largest importer of the product, followed by Hong Kong and Singapore.

Red Sanders (Red Sandalwood)

• About:
  • Red Sanders is a flora-species that is endemic to the tropical dry deciduous forest in Eastern Ghats region of Andhra Pradesh.
  • It is locally known as Yerra Chandanam, Rakta Chandanam.
  • It is a very slow-growing tree species that attains maturity after 25 – 40 years.
  • It is fire-hardy and resistant to droughts.
• High Demand & applications:
  • Red Sanders is under severe pressure from illegal logging and harvesting. It is in demand in both domestic and international markets.
  • Its rich hue and therapeutic properties are responsible for its high demand across Asia, particularly China, for use in cosmetics, medicinal products and high-end furniture/woodcraft.
  • While the red dye obtained from the wood is used as a colouring agent in textiles and medicines.
• Conservation Status:
  • It is under ‘endangered list’ in the International Union for Conservation of Nature (IUCN) Red List.
  • It is listed in Appendix-II of the Convention on International Trade in Endangered Species of Wildlife Fauna and Flora (CITES).
  • Listed under Schedule IV of The Wildlife Protection Act.

Initiatives to Curb Illegal Trade

• The export of Red Sanders from India is prohibited as per the Foreign Trade Policy.
• Operation Rakth Chandan
• Red Sanders Anti-Smuggling Task Force (RSASTF) established in 2014.

Way Ahead

• The TRAFFIC called for declaring the Red Sanders harbouring forests within the species’ geographical range as ‘High Conservation Areas’, to provide an adequate legal framework for protecting the species and its habitat.

General Studies Paper 3

Context:

• Recently, 2023-24 Union Budget speech,the finance minister announced that the total central government budget for health will be roughly be Rs 615 for every citizen.
• In her 2023-24 Union Budget speech, the finance minister announced that the total central government budget for health will be roughly Rs 86,175 crore ($10 billion) — that is, roughly Rs 615 for every citizen.
  • This is a 7 percent increase from the previous fiscal year and lower than the rate of inflation.
  • In real terms, the central government’s health spending has declined.
• Significance of budgetary spending on health:
  • The $10 billion spent by the central government may be a small fraction of overall health spending but it is consequential as it pays for: 
  • Immunisation, newborn and child health and nutrition, maternal health, infectious disease control, health systems and training.
• This spending by the government purchases far more health than out-of-pocket or private spending by Indian citizens.

Issues with the lower budgetary allocations on health

• Burden of healthcare in India:
  • Vaccinating a single child against all childhood illnesses costs at least Rs 1,600.
  • A day of hospitalisation at a public hospital is estimated at Rs 2,800.
    • At a private hospital, it is Rs 6,800.
  • Add to these the expenses for supporting women through deliveries, control of infectious disease, primary healthcare, and much more.
  • It is, therefore, no surprise that the system fails the most vulnerable and they are forced to turn to the expensive private sector.
• For elderly and sick: 
  • The poor, elderly and sick are already at a disadvantage and the burden of health expenditure makes this even worse.
• Increasing poor and non-poor gap:
  • A greater proportion of disposable incomes is taken away from a poor household as compared to a non-poor one, further broadening the gap between the two.
    • If sickness hits a working member of the household, she/he must often withdraw from active employment and their main source of income dries up at the time when they urgently need more money for treatment.
    • Households have to often sell or mortgage their productive assets,such as land and cattle, to cover the treatment costs.
      • This further reduces their capacity to bounce back. 
    • According to the WHO, 55 million people fall into poverty or deeper poverty every year due to catastrophic expenditures on health.
  • Lesser spending than the Lower and Middle-Income Countries:
    • India currently spends about Rs 8 lakh crore or about 3.2 percent of its GDP on health.
    • This is much lower than the average health spending share of the GDP — at around 5.2 percent of the Lower and Middle Income Countries (LMIC).
    • Comparing the data:
      • Of this, the government (Centre and states put together) spends about roughly 1.1 percent of the GDP.
      • Contrast this with the government health expenditure in countries like China (3 percent), Thailand (2.7 percent), Vietnam (2.7 percent) and Sri Lanka (1.4 percent).

Suggestions

• Rationalising NHM spendings:
  • The National Health Mission allocates less than 3 percent to non-communicable diseases (NCD)
    • In comparison, the allocation for communicable diseases is three times more.
  • The burden of disease from NCDs accounts for more than half of the total burden of disease.
  • Greater focus on communicable diseases is driven by past epidemiological patterns and should be rebalanced now to pay attention to non-communicable diseases.
• Balancing Urban and poor health care:
  • Public health and primary health care focus on rural areas.
  • Urban areas have poorly developed infrastructure for primary care even if secondary and tertiary health care services are better.
    • For example,immunisation coverage is now lower in urban India than in rural India.
  • A third of the country now lives in urban areas and greater resources are needed to improve health here.
• Focussing on Health research:
  • Health research has been neglected for too long.
  • The bulk of the resources provided to the Indian Council of Medical Research goes towards maintaining a large payroll of scientists and the output is poor.
  • India should follow the example of countries where government-funded health research is conducted at academic institutions, and the government’s role is to make grants and not to carry out the majority of research.
    • Competitive funding will encourage the best research and the example of the Wellcome Trust/DBT-India Alliance in promoting the culture of competitive grants can be replicated across the system.

Way ahead

• This is not an example of efficient use of resources when the country spends too little on health, too many people suffer the consequences of ill health.
• The health (and education) of Indians is the most important determinant of what the country can achieve during the next 25 years of Amrit Kaal.
• We must find ways to both find more money for health, and also more health for the money to ensure that all Indians achieve their true potential.

General Studies Paper 2

Context:

• Recently, India, France, and the United Arab Emirates (UAE)have agreed to form a partnership to work together in the fields of nuclear and solar energy,  as well as in tackling  climate change  and preserving 
• The idea of this partnership was first discussed at a meeting in New York during the United Nations General Assembly in September 2022.

Major Highlights of the Trilateral Initiative

• This trilateral initiative will serve as a forum to promote the design and execution of cooperation projects in the fields of energy, with a focus on solar and nuclear energy, as well as in the fight against climate change and the protection of biodiversity, particularly in the   Indian Ocean region.
• The three countries have also agreed to work together in defence, countering infectious diseases, and promoting cooperation in global health organisations such as the World Health Organization, Gavi-the Vaccine Alliance,  the Global Fund, and Unitaid.
• Further, the three countries will attempt to identify tangible cooperation on implementing the “One Health” approach,  and support the development of local capacities in biomedical innovation and production within developing countries.
• The three countries also agreed to expand their cooperation through initiatives such as the Mangrove Alliance for Climate  led by the UAE and the Indo-Pacific Parks Partnership led by India and France.

Other Areas of Cooperation between India and France:

• Defence Cooperation:
  • The three services of both countries have regular defence exercises; viz.
    • Exercise Shakti (Army)
    • Exercise Varuna (Navy)
    • Exercise Garuda (Air Force)
  • India entered into a contract with a French firm to build six Scorpene submarines in India’s Malegaon dockyards through a technology-transfer arrangement in 2005.
  • Also, India and France had signed the inter-government agreement in 2016, under which France agreed to provide  36 Rafale fighter jets at a cost of around 60,000 crore rupees to India.
• Other Initiatives:
  • India and France are in joint efforts to limit climate change and develop the International Solar Alliance.
  • France has agreed to be part of India’s Venus mission, scheduled for 2025.
    • Also, ISRO’s Venus instrument,  VIRAL (Venus Infrared Atmospheric Gases Linker) has been co-developed by French and Russian agencies.

Other Areas of Cooperation between India and UAE:

• Collaboration:They both are the members of    I2U2 Grouping.
• Economic Partnership:In 2022 India & UAE signed a Comprehensive Economic Partnership Agreement (CEPA) with an aim of taking bilateral trade to USD 100 billion within 5 years.
  • Also, India and UAE are discussing ways to boost non-oil commerce in rupees that will promote internationalisation of rupees.
  • UAE is the second largest export destination of India (after the US)with an amount of over US$ 28 billion for the year 2021-22.
    • For the UAE, India is the second largest trading partner for the year 2021with an amount of around USD 45 billion (non-oil trade).
  • Defence Cooperation:With the spread of radicalism in the Gulf and South Asia, India looks to enhance security cooperation with the UAE to counter terrorist threats and combat radicalization.
    • ‘Desert Eagle II’,  is a joint air combat exercise, between air forces of India and UAE.