UPSC Daily Current Affairs – 19th July 2024 – Edukemy

Today’s daily current affairs briefing for UPSC aspirants explores the latest developments relevant to the upcoming civil services examination. Our focus today includes a critical analysis of recent policy changes, international affairs, and national developments, all of which play a pivotal role in shaping India’s socio-political and economic landscape. Stay informed and stay ahead in your UPSC preparations with our daily current affairs updates, as we provide you with concise, well-researched insights to help you connect the dots between contemporary events and the broader canvas of the civil services syllabus. 

NITI Aayog Suggests Measures to Revitalise Electronics Industry 

Tags: GS-3, Economy- Inclusive Growth- Industries Sector – Annual report 

Why in the news? 

• NITI Aayog has released a report titled “Electronics: Powering India’s Participation in Global Value Chains,” proposing measures to grow India’s electronics sector from $100 billion to $500 billion by 2030. 

Electronics Sector in India: 

• Background: 
  • Current Status: India’s electronics manufacturing largely involves final assembly. Design and component manufacturing remain underdeveloped. 
  • Trends: Increased outsourcing of assembly, testing, and packaging to Electronic Manufacturing Services (EMS) companies in India. 
• Statistics: 
  • Growth: The electronics sector reached USD 155 billion in FY23, up from USD 48 billion in FY17. 
  • Components: USD 86 billion in finished goods and USD 15 billion in components. 
  • Mobile Phones: Constitute 43% of total electronics production. 
  • Domestic Production: India now manufactures 99% of its smartphones domestically. 
• Global Scenario: 
  • Market Share: The global electronics market is valued at USD 4.3 trillion, with major players including China, Taiwan, USA, South Korea, Vietnam, and Malaysia. 
  • Exports: India exports approximately USD 25 billion annually, less than 1% of the global share despite holding 4% of global demand. 

What are the Government Initiatives? 

• FDI Policies: 100% FDI allowed under the automatic route; For defence electronics, FDI up to 49% is automatic; beyond 49% requires government approval. 
• Schemes: 
  • Production Linked Incentive Scheme (PLI): For Large Scale Electronics Manufacturing and IT Hardware. 
  • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). 
• Modified Electronics Manufacturing Clusters Scheme (EMC 2.0). 
  • Semicon India Program: $10 billion incentive to develop semiconductor and display ecosystems. 
  • Other Schemes: Digital India, Make In India, Phased Manufacturing Program, Electronics Cluster Manufacturing Scheme, Electronics Development Fund. 

Challenges: 

• High Import Tariffs: Elevated import tariffs and a complex tariff structure (0%-20%+) increase costs and compliance issues, making products less globally competitive. 
• Component Ecosystem: Absence of a robust ecosystem for high-complexity components and difficulty in attracting global brands limit India’s role in the global market. 
• High Capital Costs: India’s financing costs (9%-13%) are higher compared to countries like China (4%), Malaysia (3.5%), and Mexico (2.7%). 
• R&D and Design: Insufficient infrastructure, talent, and skilling in R&D and design. 

Key Highlights of the Report: 

Target: 

• USD 500 Billion by 2030: 
  • Finished Goods: USD 350 billion. 
  • Components Manufacturing: USD 150 billion. 
  • Employment: Expected to create approximately 6 million jobs. 
• Projections in a Business as Usual (BAU) Scenario: 
  • FY30 Projection: USD 278 billion. 
  • Finished Goods: USD 253 billion. 
  • Components Manufacturing: USD 25 billion. 
• Strategic Interventions Needed: 
  • Component and Capital Goods Manufacturing: Promote local manufacturing. 
  • Incentivize R&D and Design: Enhance research and development efforts. 
  • Tariff Rationalisation: Simplify and rationalise the tariff structure. 
  • Skilling Initiatives: Focus on talent development and training. 
  • Technology Transfer: Facilitate smooth technology transfers. 
  • Infrastructure Development: Strengthen the electronics manufacturing ecosystem. 
• Focus Areas: 
  • Established Segments: Scale production in mobile phones. 
  • Emerging Areas: Expand into wearables, IoT devices, and automotive electronics. 
  • Competitiveness: Localise high-tech components, improve design capabilities, and form partnerships with global technology leaders. 
• Recommendations: 
  • Fiscal Support: Provide support to design-focused companies. 
  • Skill Development: Expedite visa approvals for training and establish Electronics Skill Training Hubs. 
  • Technology Transfer: Develop mechanisms for fast-tracking approvals under Press Note 3 (2020) to attract foreign investment crucial for ecosystem development 

Source: IE 

UNEP Foresight Report 2024 

Tags: GS Paper – 3, Environmental Pollution & Degradation- UNEP 

Why in the news? 

• Recently, the United Nations Environment Programme (UNEP) released the report titled “Navigating New Horizons: A Global Foresight Report on Planetary Health and Human Wellbeing, 2024.”  
• The report emphasises 8 critical global shifts that are exacerbating the triple planetary crisis of climate change, biodiversity loss, nature loss, and pollution. 

Key Highlights of the UNEP Report: 

• No Significant Progress in UN SDG Goals: 
  • As of the latest 2023 SDG Progress Report, 85% of the 169 Sustainable Development Goals (SDG) targets are off track, with 37% showing no progress or regressing since 2015. 
  • 42.85% of the targets for SDG 6 (Clean Water and Sanitation), SDG 13 (Climate Action), SDG 14 (Life Below Water), and SDG 15 (Life on Land) are either stagnating or deteriorating. 
  • 60% of environmental indicators are either worsening or have unclear status. 
• 8 Critical Shifts and 18 Signals of Change: 
  • The report identifies 8 significant shifts and 18 potential signals of change. These signals, which may have significant future impacts, are early indicators that could be positive or negative. 

• Rapidly Changing Human-Environment Relationship: 
  • Human activities are expected to impact over 90% of land by 2050, with up to 46% of species at risk of extinction. 
  • Global temperatures are projected to rise between 2.1°C and 3.9°C by 2100, driven primarily by greenhouse gas emissions from fossil fuels, mostly contributed by developed nations. 
• Scarcity and Competition for Critical Resources: 
  • Global competition for critical resources is increasing, leading to volatility and potential conflicts, particularly in resource-rich areas. 
  • Fundamental resources like water and food face growing threats from climate change and poor management, disproportionately impacting vulnerable populations. 

• Advancement in AI, Digital Transformation, and Technology: 
  • Rapid advancements in digital technologies and AI are driven by mobile devices, internet access, and growing AI capabilities. 
  • There are over 8.89 billion mobile subscriptions, and 67.4% of the global population were internet users in 2023.  
  • However, the environmental implications of these technologies need to be addressed. 
• Emergence of a New Era of Conflict: 
  • The report warns of potential major global disruptions from AI-based and autonomous weapons within 4-6 years without human oversight. 
  • Examples include AI-equipped drones used in the Russia-Ukraine conflict and the risk of AI-controlled bioweapons.  
  • There is a 59% likelihood of such disruptions, with high perceived impact. 
• Mass Forced Displacement: 
  • 1.5% of the global population is currently forcibly displaced, nearly double the figure from a decade ago. 
  • Climate change is a major driver, with extreme conditions like wildfires and flooding contributing to displacement.  
  • Regions such as Africa, Central America, the Pacific Islands, and South Asia face higher risks of climate-induced migration. 
  • By 2070, up to 3 billion people could live outside suitable climate conditions, with environmental migrants potentially numbering between 25 million and 1 billion by 2050.  
  • Internally displaced persons have increased by 340% over 20 years. 

• Widening Inequalities: 
  • Global inequality is worsening, with the top 10% holding over 75% of wealth, while the bottom 50% possess just 2%. 
  • Inequality within nations is driven by unequal access to education, jobs, and services, exacerbated by globalisation.  
  • Wealth inequality leads to ecological inequities, with the wealthy contributing more to climate change while the poor suffer the most. 
• Misinformation, Declining Trust, and Polarisation: 
  • Erosion of trust in science and public institutions undermines evidence-based policymaking and democratic governance. 
  • This decline, fuelled by perceived failures and misinformation, makes it challenging to implement effective policies to address issues like the climate crisis 

Future Outlook and Recommendations of UNEP: 

• Broadening Stakeholder Engagement: Engage diverse stakeholders, including women and youth, using technology to boost participation, fight misinformation, and build trust. 
• Stronger Voice for Young People: Involve young people in decision-making at all governance levels to ensure generational equity. 
• Redefining Progress Beyond GDP: Use broader indicators like the Inclusive Wealth Index to guide investments and achieve Sustainable Development Goals. 
• Community Empowerment: Support agile governance that allows communities to innovate and set flexible long-term environmental goals. 
• Data-Driven Decision-Making: Leverage data and monitoring to inform evidence-based policymaking and enhance environmental oversight. 
• Sustainable Prosperity: Transform economies to thrive within environmental limits, emphasising equity, sustainability, and resilience. 

What is UNEP? 

• About:  
  • The United Nations Environment Programme (UNEP) is a leading global environmental authority established on June 5, 1972.  
  • It sets the global environmental agenda, promotes sustainable development within the United Nations system, and advocates for global environmental protection. 
• Major Reports: 
  • Emission Gap Report, Adaptation Gap Report, Global Environment Outlook, Frontiers, Invest into Healthy Planet 
• Major Campaigns: 
  • Beat Pollution, UN75, World Environment Day, Wild for Life 
• Headquarters: Nairobi, Kenya. 

UPSC Civil Services Examination Previous Year Question 

Prelims 

Q:1 The ‘Common Carbon Metric’, supported by UNEP, has been developed for 

1. assessing the carbon footprint of building operations around the world 
2. enabling commercial fanning entities around the world to enter carbon emission trading 
3. enabling governments to assess the overall carbon footprint caused by their countries 
4. assessing the overall carbon footprint caused by the use of fossil fuels by the world in a unit time 

Ans: (a) 

Mains 

Q:1 Discuss global warming and mention its effects on the global climate. Explain the control measures to bring down the level of greenhouse gases which cause global warming, in the light of the Kyoto Protocol, 1997. (2022) 

Source: UNEP 

The State of India’s Informal Economy 

Tags: GS-3, Economy- Inclusive Growth – Growth & Development– Employment 

Why in the news? 

• According to the Annual Survey of Unincorporated Enterprises (ASUSE), the informal sector in India faces many challenges.  
• Over the last seven years, many small and medium enterprises have shut down, resulting in the loss of about 16.45 lakh jobs. 

Meaning of the Informal Sector of the Economy: 

• Terminology: 
  • The terms unorganised and informal sector are used interchangeably in the Indian context. 
• Composition: 
  • Includes small and medium enterprises and household proprietary and partnership establishments. 
• Economic Contribution: 
  • Contributes over 44% to the country’s gross value added (GVA) and employs nearly 75% of the workforce in non-agricultural enterprises. 
  • The sector accounts for almost half of India’s economic output and more than three-fourths of employment. 
• Sectoral Distribution: 
  • The highest share of the unorganised sector is in agriculture due to small and fragmented holdings. 
  • Other significant sectors include trade, construction, real estate, professional services, etc. 

Key characteristic of the informal sector: 

About the ASUSE: 

• Release: 
  • The ASUSE was released for the years 2021-22 and 2022-23 by the Union Ministry of Statistics and Programme Implementation (MoSPI). 
• Scope: 
  • Surveys unincorporated non-agricultural establishments in three sectors: manufacturing, trade, and other services. 
  • Targets unincorporated enterprises, comprising MSMEs, household units (including those with hired workers), and own-account enterprises. 
  • Includes manufacturing units not covered under the Factories Act 1948 and the organised manufacturing sector covered by the Annual Survey of Industries (ASI).
• Coverage: 
  • Under trade and other services, the survey includes proprietary and partnership establishments (excluding LLPs), cooperatives, self-help groups, non-profit institutions, etc. 

Key Highlights of the ASUSE: 

• Employment in the Informal Sector: 
  • The number of workers employed in the informal sector in 2022-23 has decreased by 16.45 lakh, or about 1.5%, to 10.96 crore, compared to 11.13 crore in 2015-16.
• Increase in Unincorporated Enterprises: 
  • The number of unincorporated enterprises increased by 16.56 lakh, rising to 6.50 crore in 2022-23 from 6.33 crore in 2015-16. 
• Growth in Real GVA: 
  • The real GVA of unincorporated sector enterprises grew by 6.9% in 2022-23, although this remains lower than the pre-pandemic level. 

What is the significance of the ASUSE Data? 

• A Crucial Employment Indicator: 
  • The informal sector is closely monitored for its capacity to generate employment and absorb the labour force, particularly semi-skilled and unskilled labour. 
• Impact of Three Major Shocks: 
  • The data, available for the first time since 2015-16, provides insights into the impact of three major exogenous shocks on the growth of unincorporated enterprises and employment: 
• Demonetisation (November 2016) 
• Rollout of Goods and Services Tax (July 2017) 
• Covid-19 Pandemic (March 2020) 
  • The informal sector has borne much of the brunt of these shocks. 
• State-Specific Data: 
  • States like Maharashtra, Bihar, Gujarat, Madhya Pradesh, and Odisha recorded an increase in informal employment between 2015-16 and 2022-23. 
  • States like Uttar Pradesh, West Bengal, Tamil Nadu, Karnataka, and Andhra Pradesh registered a decline in the number of informal sector workers during the same period. 
  • These ten states account for nearly three-quarters of the informal sector workers employed in India. 
• Broad Decline in Employment Quality: 
  • Most new jobs in the sector were created in own-account enterprises rather than hired-worker units, indicating a decline in the quality of employment. 
• Correlation with Periodic Labour Force Survey (PLFS): 
  • The findings match the PLFS 2022-23 data, which shows an increase in workers in agriculture and a decrease in manufacturing. 

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Mains 

Q:1 How globalisation has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? (2016) 

Source: IE 

SEBI’s Proposal on New Asset Class 

Tags: GS-3, Economy- Capital Market- Fiscal Policy- SEBI 

Why in the news? 

• Recently, the Securities and Exchange Board of India (SEBI) has proposed a new asset class designed to bridge the gap between mutual funds and portfolio management services (PMS).  
• This new class aims to cater to investors with investible funds ranging from Rs 10 lakh to Rs 50 lakh. 

About Securities and Exchange Board of India (SEBI): 

• Establishment: 
• SEBI is a statutory regulatory body established by the Government of India in 1992, endowed with statutory powers through the SEBI Act, 1992. 
• Objective: 
• Regulate the securities market in India and protect the interests of investors in securities. 
• Formation Rationale: 
• SEBI was created to address unfair practices and protect investors. It serves three key groups: 
  • Issuers: Provides a marketplace for efficient and fair fundraising. 
  • Intermediaries: Offers a professional and competitive market environment. 
  • Investors: Ensures protection and accurate information. 

Powers of SEBI: 

• Quasi-Judicial: 
• Powers to pass judgments in cases of fraud and unethical practices to ensure market transparency and fairness. 
• Quasi-Executive: 
• Powers to examine financial records, impose rules, pass judgments, and take legal actions against violators. 
• Quasi-Legislative: 
• Powers to formulate rules and regulations to protect investor interests, including listing obligations, insider trading regulations, and disclosure requirements. 

SEBI’s Proposal on New Asset Class: 

• Overview: 
  • SEBI has proposed a new asset class to bridge the gap between mutual funds and PMS, targeting investors with higher risk appetites and offering potentially higher returns. 
• Need for the New Asset Class: 
  • Identified gap in the investment spectrum: 
  • Mutual funds cater to retail investors with varying risk levels. 
  • PMS and alternative investment funds (AIFs) serve high-net-worth individuals. 
  • The new asset class provides an intermediate option with higher returns and risks. 

Investment Strategies: 

• Long-Short Equity Funds: 
  • Involves both long and short positions in equity and related instruments. 
• Inverse ETFs/Funds: 
  • Aims to generate returns negatively correlated with the underlying index. 
• Global Availability: 
  • Similar strategies are available globally: 
  • In the US, regulated by the SEC, long-short equity funds and inverse ETFs offer hedge fund-like strategies with mutual fund liquidity. 
  • Australia offers various inverse ETF products for hedging against market downturns or speculating on declines. 
• Investment Threshold: 
  • Minimum investment requirement is Rs 10 lakh per investor, aimed at attracting investors with an investible surplus between Rs 10 lakh and Rs 50 lakh. 
  • Investors may use Systematic Investment Plans (SIP), Systematic Withdrawal Plans (SWP), and Systematic Transfer Plans (STP). 
  • The total invested amount must not fall below Rs 10 lakh due to withdrawals or systematic transactions. 
• Eligibility for Launch: 
  • Mutual funds with an average AUM exceeding Rs 10,000 crore over three years or those managed by experienced CIOs and fund managers are eligible. 

Proposed Relaxations: 

• Debt Securities: 
  • Limited to 10% of NAV, extendable to 12% with approval, and up to 20% with further approval. 
• Credit Risk-Based Limits: 
  • Ranges from 10% for AAA-rated securities to 6% for A-rated and below, each extendable by 2 to 5 percent with approval. 

Conclusion: 

• SEBI’s proposed new asset class aims to provide a regulated, flexible investment option that addresses the gaps between mutual funds and PMS. By targeting sophisticated investors and managing risks effectively, this initiative seeks to enhance investment options and curb unauthorised investments. 

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims 

Q:1 Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly? (2019) 

1. Certificate of Deposit 
2. Commercial Paper 
3. Promissory Note 
4. Participatory Note 

Ans: (d) 

Source: IE 

Shadow Cabinets in Parliamentary Democracies 

Tags: GS – 2, Polity & Governance- Parliament– Cabinets 

Why in the news? 

• Recently, the leader of the Opposition (LoP) and president of the Biju Janata Dal (BJD) formed a ‘shadow cabinet’ comprising 50 BJD Members of the Legislative Assembly (MLAs) in Odisha.  
• This move follows the Bhartiya Janata Party’s recent electoral successes in the state and signifies a notable shift in legislative dynamics. 

What is a Shadow Cabinet? 

• About: 
  • A shadow cabinet consists of opposition MLAs/MPs who mirror the portfolios of government ministers.  
  • Led by the LoP, it monitors and critiques the actions of the ruling government across various departments and ministries.  
  • Originating from the Westminster system, it is used in countries like the UK, Australia, Canada, and New Zealand. 
• Benefits: 
• Expertise:
  • MPs gain detailed knowledge of specific ministries, enhancing their ability to challenge government policies. 
  • Leadership Experience: Provides opposition MPs with leadership experience, preparing them for future ministerial roles. 
  • Democratic Oversight: Ensures robust scrutiny of executive actions, fostering informed debates and preventing hasty decisions. 
• Challenges and Criticisms: 
  • Coordination Issues: In India’s multi-party system, achieving a unified shadow cabinet is challenging due to differing party priorities. 
  • Narrow Focus: Critics argue that focusing on specific ministries might limit MPs’ understanding of broader governance issues, though periodic reshuffles can mitigate this. 
  • Variable Recognition: Recognition and institutionalisation of shadow cabinets vary, impacting their effectiveness. 

Potential Implications for Indian Democracy: 

• Strengthened Oversight: Institutionalising a shadow cabinet can enhance parliamentary oversight, ensuring thorough debate and justification of legislative actions. 
• Enhanced Trust: Providing coherent policy alternatives can boost public trust in parliamentary proceedings, presenting opposition parties as credible governance alternatives. 
• Policy-Focused Debate: Encourages a shift from personality-driven politics to substantive policy discussions. 

International Examples: 

• United Kingdom: The Shadow Cabinet, appointed by the Leader of the Opposition, mirrors the Government’s Cabinet, with each member overseeing a specific policy area. 
• Canada: Opposition MPs form shadow cabinets, acting as critics for the same areas as the governing party’s ministers, reflecting the potential for replacement. 

Experiments with Shadow Cabinets in India: 

• Maharashtra, 2005: BJP-Shiv Sena Shadow Cabinet shadowed the Congress-NCP government, providing structured scrutiny. 
• Madhya Pradesh, 2014: Congress Shadow Cabinet involved senior leaders scrutinising government departments. 
• Goa, 2015: NGO-led Shadow Cabinet, introduced by Gen Next, provided independent policy analysis. 
• Kerala, 2018: Civil Society Shadow Cabinet, led by activists and experts, offered critical analysis of government policies. 

Way Forward 

• Formalisation: Parliament could amend its rules to formally recognize the LoP and allow appointment of a shadow cabinet, enhancing the opposition’s status and operational framework. 
• Constitutional Amendment: Consider amending the Constitution to formally recognize the Leader of the Opposition and the shadow cabinet. 
• Research Funding: Allocate budget for research staff and resources for the shadow cabinet to develop informed policy alternatives. 
• Expertise-Based Appointments: The LoP should appoint shadow ministers based on expertise and experience to ensure effective criticism and policy development. 

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims: 

Q:1 Which of the following is/are the function/functions of the Cabinet Secretariat? (2014) 

1. Preparation of agenda for Cabinet Meetings 
2. Secretarial assistance to Cabinet Committees 
3. Allocation of Financial resources to the Ministries 

Select the correct answer using the code given below: 

1. 1 only  
2. 2 and 3 only 
3. 1 and 2 only  
4. 1, 2 and 3 

Ans: (c) 

Mains: 

Q:1 To what extent, in your view, the Parliament is able to ensure accountability of the executive in India? (2021) 

Source: IE 

Emergency Credit Line Guarantee Scheme 

Tags: GS- 3, Economy- Inclusive Growth – Government Policies & Interventions 

Why in the news? 

• Recently, government officials have reported that non-performing assets (NPA) under the Emergency Credit Line Guarantee Scheme (ECLGS) have been around 6%. 

About Emergency Credit Line Guarantee Scheme: 

• Launch:
  • Introduced by the Government of India in 2020 as a special scheme in response to the Covid-19 crisis. 
• Objective: 
  • to provide 100 percent guaranteed coverage to banks, non-banking financial institutions (NBFCs), and other lending institutions for extending emergency credit to business entities impacted by the Covid-19 pandemic, aiding them in meeting their working capital requirements. 
• Operational Domain: 
  • Administered by the Ministry of Finance, Department of Financial Services (DFS). 
• Implementation: 
  • Managed by the National Credit Guarantee Trustee Company Ltd (NCGTC), established by the Union Ministry of Finance to oversee and provide guarantees for these loans. 
• Phases: 
  • Launched in multiple phases: ECLGS 1.0, ECLGS 2.0, ECLGS 3.0, and ECLGS 4.0, each expanding the scheme’s scope to include various sectors. 
• Sanctions/Disbursements: 
  • Carried out by lending institutions based on their assessment of the borrower’s requirements and eligibility. 
• Charges: 
  • Processing charges, foreclosure, and prepayment charges are waived under the scheme. 
• Collateral: 
  • No collateral is required for this scheme. 

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims  

Q:1 Pradhan Mantri MUDRA Yojana is aimed at (2016) 

1. bringing the small entrepreneurs into formal financial system 
2. providing loans to poor farmers for cultivating particular crops 
3. providing pensions to old and destitute persons 
4. funding the voluntary organisations involved in the promotion of skill development and employment generation 

Ans: (a) 

Q:2 With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements: (2010) 

1. They cannot engage in the acquisition of securities issued by the government. 
2. They cannot accept demand deposits like Savings Account. 

Which of the statements given above is/are correct? 

1. 1 only 
2. 2 only 
3. Both 1 and 2 
4. Neither 1 nor 2 

Ans: (b) 

Source: TH 

Chagos Archipelago 

Tags: GS-2, IR- India & Neighbouring country Relation- Important International Issues 

Why in the news: 

• Recently, the external affairs minister affirmed that India will continue supporting Mauritius on the Chagos Archipelago issue, consistent with its stance on decolonization. 

About Chagos Archipelago: 

• Location: 
  • An island group situated in the central Indian Ocean, approximately 1,000 miles (1,600 km) south of the southern tip of the Indian subcontinent. 
• Territorial Status: 
  • An overseas territory of the United Kingdom, established on November 8, 1965. 
• Key Islands: 
  • Notable islands include Diego Garcia atoll (which hosts a strategic US military base), Danger Island, Egmont Islands, Eagle Islands, Nelsons Island, and Peros Banhos atoll. 
• Climate: 
  • The archipelago experiences a tropical marine climate characterised by high temperatures and elevated humidity levels, with the climate being significantly moderated by the trade winds. 

Chagos Island Dispute: 

• Background: 
  • The Chagos dispute centres around the archipelago in the Indian Ocean, claimed by Britain along with Mauritius in 1814.
• Lease to the United States: 
  • In 1966, Britain leased Diego Garcia, the largest of the Chagos Islands, to the United States for use as a military base. 
• Chagossians’ Legal Battle: 
  • The Chagossians, primarily descendants of African slaves brought to the islands in the 18th century, have been engaged in a prolonged legal battle for the right to return to their homeland. 
• Mauritius’ Claim: 
  • Mauritius, which gained independence from Britain in 1968, has consistently asserted its claim over the Chagos Islands. 
• International Court of Justice Ruling: 
  • In 2019, the International Court of Justice (ICJ) dismissed the UK’s right to govern the Chagos Islands and called on the UK government to withdraw from the archipelago. 

Source: HT 

ADB retains India growth forecast at 7% for FY25 

Tags: GS-3, Economy- Growth & Development- Industrial Growth- Asian Development Bank (ADB) 

Why in the news? 

• The Asian Development Bank (ADB) recently retained India’s GDP growth forecast for the current financial year at 7%. 

About Asian Development Bank (ADB): 

• Establishment: 
  • The ADB is a multilateral development bank established on 19th December 1966. 
• Principal Role: 
  • It serves as the principal international development finance institution for the Asia-Pacific region. 
• Vision: 
  • ADB envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while striving to eradicate extreme poverty in the region. 
• Functions: 
  • Assistance: Provides grants, loans, technical assistance, and equity investments to its developing member countries, the private sector, and public-private partnerships to promote social and economic development. 
  • Maximising Impact: Facilitates policy dialogues, provides advisory services, and mobilises financial resources through cofinancing operations that leverage official, commercial, and export credit sources. 
• Headquarters: 
  • Manila, Philippines. 
• Membership: 
  • Eligibility: Open to members and associate members of the United Nations Economic Commission for Asia and the Far East, other regional countries, and non-regional developed countries that are members of the U.N. or any of its specialised agencies. 
  • Growth: From 31 members at its establishment in 1966, ADB has expanded to 68 members, with 49 from within Asia and the Pacific and 19 from outside the region. 
• Control: 
  • Board of Governors: The ADB is governed by a board of governors representing the member countries. 
  • Voting System: Modelled closely on the World Bank, the ADB has a weighted voting system where votes are distributed in proportion to members’ capital subscriptions. 
  • Largest Shareholders: As of 2022, the five largest shareholders are Japan and the United States (each with 6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%). 
• Source of Funding: 
  • Capital Raising: Regularly raises capital through the international bond markets. 
  • Additional Sources: Relies on member contributions, retained earnings from lending, and loan repayments for funding. 

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims: 

Q:1 Consider the following statements: (2020) 

1. The value of Indo-Sri Lanka trade has consistently increased in the last decade. 
2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh. 
3. In the last five years, Nepal has been the largest trading partner of India in South Asia. 

Which of the statements given above is/are correct? 

1. 1 and 2 only  
2. 2 only  
3. 3 only 
4. 1, 2 and 3 

Ans: (b) 

Q: 2 The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as (2016) 

1. G20 
2. ASEAN  
3. SCO  
4. SAARC 

Ans: (b) 

Mains 

Q:1 Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (2016) 

Source: FE 

Scientists discover a new microcontinent between Greenland and Canada 

Tags: GS-1, World Geography- New Geographical Discovery 

Why in the news? 

• A microcontinent has been recently discovered in the Davis Strait, located between Canada and Greenland. 

About the Newly Discovered Microcontinent: 

• Location: 
  • The discovery was made in the Davis Strait, a large stretch of water between Canada’s Baffin Island and Greenland. 
• Formation: 
  • The strait was formed millions of years ago due to tectonic plate shifts between the two islands, reconfiguring the Earth’s crust. 
  • This tectonic activity resulted in the formation of a thick continental crust in the ocean, now recognized as a primitive microcontinent. 
• Naming: 
  • The microcontinent has been named the Davis Strait proto microcontinent, attributed to the tectonic evolution of the strait in the region. 
• Characteristics: 
  • The microcontinent features a 19–24 km thick thinned continental crust, surrounded by two narrow bands of thin (15–17 km) continental crust. 

Key Facts about Davis Strait: 

• Geography: 
  • Also known as the northern arm of the Atlantic Ocean. 
  • Located north of the Labrador Sea, between southwestern Greenland and southeastern Baffin Island in Nunavut, Canada. 
  • Separates the northern Baffin Bay from the southern Labrador Sea. 
  • Forms a part of the Northwest Passage, connecting the Atlantic and Pacific Oceans through the Canadian Arctic Archipelago. 
  • Baffin Bay: 
  • Positioned between Baffin Island and Greenland’s west coast. 
  • Defined as a marginal sea of the Arctic Ocean and considered a small sea of the North Atlantic. 
  • Not navigable in winter due to thick ice cover, floating icebergs, and heavy fog. 
• Dimensions: 
  • The Davis Strait extends approximately 400 miles (650 km) north to south and is 200 to 400 miles wide. 
  • Water depth ranges from 1000 to 2000 metres, making it shallower than the southern Labrador Sea. 
• Geological Formations: 
  • Home to complex geological features such as underwater basins and ridges. 
  • Formed due to strike-slip faulting along the Ungava Fault Zone around 45 to 62 million years ago, triggering tectonic movements in the Labrador Sea and Baffin Bay. 
• Ocean Currents: 
  • Two different ocean currents, with contrasting temperatures, influence the Davis Strait. 
  • The western Greenland current carries warmer waters towards the east from Greenland’s shores. 
  • The Labrador current moves iceberg-filled water southward along the Canadian coast, the Labrador Sea, and the Atlantic. 
  • Ice conditions reflect this flow regime, with heavy ice movement and icebergs along the western shore, contrasting sharply with more open water along the Greenland side. 

Source: TOI 

Frequently Asked Questions (FAQs)

Q: What are daily current affairs?

A: Daily current affairs refer to the most recent and relevant events, developments, and news stories that are happening around the world on a day-to-day basis. These can encompass a wide range of topics, including politics, economics, science, technology, sports, and more.

Q: Why is it important to stay updated with daily current affairs?

A: Staying updated with daily current affairs is crucial because it helps individuals make informed decisions in their personal and professional lives. It enables people to understand the world around them, stay aware of significant events, and engage in informed discussions about important issues.

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A: There are various sources for daily current affairs, including newspapers, news websites, television news broadcasts, radio programs, and dedicated apps or newsletters. Social media platforms are also widely used to share and access current affairs information.

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A: To incorporate daily current affairs into your routine, consider setting aside specific times each day to read or watch news updates. You can also subscribe to newsletters or follow news apps to receive curated content. Engaging in discussions with peers or participating in online forums can further enhance your understanding of current events.

Q: What are some tips for critical analysis of daily current affairs?

A: When analyzing daily current affairs, it’s essential to cross-reference information from multiple sources to ensure accuracy. Additionally, consider the source’s credibility and bias, if any. Develop the ability to identify the main points and implications of news stories, and critically evaluate the significance and impact of the events reported.

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