UPSC Daily Current Affairs – 01st June 2024

In today’s daily current affairs briefing for UPSC aspirants, we explore the latest developments that hold relevance for 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 the socio-political and economic landscape of India. 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.

RBI annual report 2023-24

Tags: GS Paper – 3- Economy- Monetary Policy- Growth & Development

Context: 

• The Reserve Bank of India’s (RBI) Annual Report for the year 2023-24, provides a comprehensive review of the Indian economy’s performance, the central bank’s policy measures, and its future outlook.

Key Insights from the RBI Annual Report 2023-24: 

1. Domestic Economic Environment:
   • GDP Growth: Real GDP expanded by 7.6% in 2023-24, an acceleration from the previous year’s 7.0% growth rate.
   • Investment Growth: Gross fixed capital formation (GFCF) surged to 10.2%, primarily fueled by government investments in infrastructure, while private consumption growth moderated to 3.0%.
   • Inflation Trends: Inflationary pressures eased, with headline inflation dropping to 5.4%, attributed to a decline in core inflation and deflationary trends in fuel prices.
   • Monetary Policy: The Monetary Policy Committee (MPC) maintained the policy repo rate at 6.50%, adhering to a stance of withdrawing accommodation to align inflation with targets while fostering economic expansion.

2. Financial Sector:
   • Market Stability: Domestic financial markets remained steady, characterised by orderly movements in bond and foreign exchange markets, alongside buoyant equity markets.
   • Currency Performance: The Indian Rupee (INR) exhibited stability, experiencing a marginal depreciation of 1.4% during 2023-24, positioning it among the top-performing major Emerging Market Economies (EMEs) currencies.
   • Equity Market Performance: Domestic equity markets witnessed significant growth, surpassing a market capitalization of over US$ 4 trillion, reflecting robust investor confidence.
   • Interest Rate Transmission: Repo rate adjustments by the MPC continued to influence lending and deposit rates in banks, with a notable uptick in the proportion of external benchmark-linked loans within the total outstanding floating loans

3. Fiscal and External Sector:
   • Fiscal Consolidation: The central government successfully reduced the gross fiscal deficit (GFD) to 5.9% of GDP in 2023-24 from 6.4% in the previous year, meeting fiscal consolidation targets.
   • Expenditure Management: Revenue spending growth was contained at 2.5%, while capital expenditure maintained double-digit growth for the fourth consecutive year, reflecting prudent fiscal management.
   • Export-Import Trends: India’s merchandise exports declined by 3.1% in 2023-24 due to global trade volume and commodity price declines, while imports fell by 5.7%, contributing to a reduction in the trade deficit.
   • Current Account Deficit (CAD): The CAD narrowed to 1.2% of GDP during April-December 2023 from 2.6% in the previous year, indicating improved external sector stability.
   • Foreign Exchange Reserves: Foreign exchange reserves reached a record high of US$ 648.7 billion, providing a robust cover of 11.4 months of imports, bolstering India’s external resilience.

4. Regulatory and Supervisory Developments:
   • Enhanced Governance: Regulatory guidelines were issued to strengthen governance and risk management practices, including measures such as default loss guarantee in digital lending and frameworks for compromise settlements and technical write-offs.
   • Prudential Norms: Prudential norms were introduced for investment portfolios of commercial banks, enhancing the stability and resilience of the financial system.
   • Cyber Risk Management: The Reserve Bank conducted comprehensive onsite cyber risk assessments and actively engaged with supervised entities to ensure compliance with governance and assurance functions, fostering a robust regulatory environment.

5. Financial Inclusion and Digitalization:
   • Improved Financial Inclusion: The Financial Inclusion Index (FI-Index) rose from 56.4 in March 2022 to 60.1 in March 2023, indicating a deepening of financial inclusion efforts.
   • Digital Transaction Growth: The expansion of online retail and e-commerce drove growth in card transactions, particularly notable in the Bharat Bill Payment System (BBPS).
   • UPI Milestones: The Unified Payments Interface (UPI) platform achieved significant milestones, exceeding 13 billion transactions in March 2024, showcasing its widespread adoption and utility.
   • Payment System Enhancements: Various payment systems were enhanced to improve user accessibility and convenience, such as the integration of near field communication (NFC) technology in UPI-Lite and the introduction of ‘Conversational Payments’ on UPI.

6. Prospects for 2024-25:
   • Positive Economic Outlook: The Indian economy is poised for growth, supported by robust macroeconomic fundamentals, resilient financial and corporate sectors, and a strong external sector.
   • Government Initiatives: Continued government emphasis on capital expenditure (capex) and fiscal consolidation, coupled with optimism among consumers and businesses, is expected to drive investment and consumption demand.
   • Agricultural Sector Outlook: Favourable prospects are anticipated for agriculture and rural activities, buoyed by predictions of an above-normal southwest monsoon and government initiatives aimed at supporting the sector.
   • Emerging Sectors: Sectors like renewable energy and semiconductors are forecasted to advance rapidly, aided by government initiatives and budget allocations, contributing to overall economic growth and development

Source: TH  IE  ET

Earth CARE Mission

Tag: GS- 3–Science & Technology–Space Technology- Achievements in Science & Technology

Context :

• The Earth CARE (Earth Clouds, Aerosols, and Radiation Explorer) mission was successfully launched by Falcon 9 from Vandenberg Space Force Base in California.
  • Spacecraft Name: JAXA nicknamed the spacecraft Hakuryu or “White Dragon” due to its visual appearance.
  • ESA-Led Mission on Falcon 9: Earth CARE marks the second ESA-led mission to be launched on a Falcon 9 rocket, following the Euclid space telescope.
  • Mission Collaboration: The Earth CARE mission is a collaborative effort between the Japan Aerospace Exploration Agency (JAXA) and the European Space Agency (ESA) under ESA’s Earth Explorer Program.
  • Scientific Objectives: The primary objective of the Earth CARE mission is to advance our understanding of the interactions between clouds, aerosols, and solar and terrestrial radiation in the Earth’s atmosphere

Objective:

• Earth CARE aims to offer comprehensive vertical profiles of clouds and aerosols within the Earth’s atmosphere. 
• It seeks to investigate the influence of these atmospheric elements on the Earth’s radiation budget.
• By utilising high-resolution data, the mission aims to enhance the accuracy of climate models.
• Mission Specifications:
  • Orbital Parameters: Earth CARE will orbit the Earth at an altitude of approximately 400 km (250 miles) in a sun-synchronous orbit.
  • Orbit Characteristics: The orbit will have an altitude of 393.14 km, an inclination of 97.05°, a period of 92.5 minutes, and a repeat cycle of 25 days.

• Earth CARE will carry four instruments onboard:
  • Atmospheric Lidar (ATLID): Provides vertical profiles of aerosols and thin clouds.
  • Cloud Profiling Radar (CPR): Offers vertical profiles of thicker clouds.
  • Multi-Spectral Imager (MSI): Acts as a multi-purpose imaging radiometer, delivering visible light and infrared radiation measurements of clouds and aerosols.
  • Broad-Band Radiometer (BBR): Provides radiation measurements from the top of the atmosphere

Relationship between Clouds, Aerosol and and climate : 

• Clouds:
  • The dominance of cooling or warming is determined by the cloud type.
  • High, thin clouds trap more heat than they reflect sunlight, intensifying warming, whereas low, thick clouds promote cooling.
  • Currently, low clouds are predominant, cooling the climate by counteracting greenhouse warming.
  • However, as climate shifts, more high clouds and fewer low clouds are anticipated, reversing the overall effect to enhance warming.

• Aerosols: 
  • Aerosols and clouds share similarities in their direct effects, reflecting sunlight and absorbing and re-radiating infrared radiation. Increased aerosol concentration amplifies these direct effects.
  • However, their primary climate influence stems from their indirect effects. Aerosols serve as cloud condensation nuclei, providing surfaces for water vapour to condense onto, forming cloud droplets.
  • With abundant water vapour, higher aerosol levels lead to increased cloud formation and brighter cloud tops. This enhances sunlight reflection, strengthening the cooling effect.

Source:  (BBC)

IUCN Report on Mangrove Ecosystems

Tag: GS – 3,Environment & Ecology-  Conservation- Environmental Pollution & Degradation

Context: 

• A recent report from the International Union for Conservation of Nature (IUCN) warns that half of the world’s mangrove ecosystems face the risk of collapse. 

Key Findings of the Study on Mangrove Ecosystems

1. Global Risk Assessment
   • The research categorised the global mangrove ecosystems into 36 regions referred to as provinces, assessing the threats and risk of collapse in each region.
   • More than 50% of global mangrove ecosystems face collapse risk, with almost 1 in 5 under severe threat.
   • One-third of mangrove ecosystem provinces will suffer severely from sea-level rise, potentially submerging 25% of global mangrove areas within 50 years.

2. Regional Vulnerability
   • South Indian mangrove ecosystems, shared with Sri Lanka and the Maldives, are critically endangered.
   • Mangrove ecosystems in the Bay of Bengal region (shared with Bangladesh) and the western coast (shared with Pakistan) are least concerned.

3. Primary Threats
   • Climate change is the primary threat to global mangrove ecosystems, impacting 33% of them.
   • Other significant threats include deforestation, development, pollution, and dam construction.
   • Cyclones, typhoons, hurricanes, and tropical storms are intensifying on certain coastlines, affecting mangroves.

4. Global Impact
   • Coasts along the Northwest Atlantic, North Indian Ocean, Red Sea, South China Sea, and Gulf of Aden will be significantly affected.
   • Without increased conservation efforts, approximately 7,065 sq km more mangroves could be lost, and 23,672 sq km will be submerged by 2050.

The Status of Mangroves Cover in India:

• Approximately 40% of the world’s mangrove cover is concentrated in South East Asia and South Asia, with India accounting for about 3% of the total mangrove cover in South Asia.
• India’s mangrove cover has expanded by 54 sq km (1.10%) compared to the previous assessment, reaching a total of 4,975 sq km, which constitutes 0.15% of the country’s total geographical area.
• West Bengal holds the largest portion of India’s mangrove cover at 42.45%, followed by Gujarat at 23.66%, and Andaman & Nicobar Islands at 12.39%. 
• The South 24 Parganas district of West Bengal alone contributes 41.85% of India’s mangrove cover, encompassing the Sundarbans National Park.
• Gujarat has the most significant increase in mangrove cover, with an additional 37 sq km.

India’s Conservation Initiatives: 

• Coastal Regulation Zone (CRZ) Notification (2019) restricts activities detrimental to mangroves, such as waste dumping and industrial activities.
• Existing forest laws like the Indian Forest Act, 1927, and the Wildlife Protection Act, 1972, provide legal protection to mangroves.
• Other relevant acts like the Water (Prevention and Control of Pollution) Act, 1974, and the Maharashtra Tree (Felling) Act, 1972, further safeguard mangrove ecosystems.
• The Central Sector Scheme on ‘Conservation and Management of Mangroves and Coral Reefs’ offers financial assistance to coastal states and union territories for mangrove conservation.
• The Mangrove Initiative for Shoreline Habitats & Tangible Incomes (MISHTI) aims to promote and conserve mangroves, launched in the 2023-24 Union Budget.

Significance of Mangrove Ecosystem

1. Biodiversity Conservation: Mangroves provide vital habitats for diverse plant and animal species, serving as breeding, nursery, and feeding grounds. Iconic species like the Royal Bengal tiger, Irrawaddy Dolphin, and Rhesus macaque thrive in areas such as the Sundarbans.
2. Coastal Protection: Mangroves act as natural barriers, stabilise shorelines against erosion, storm surges, and tsunamis. Their robust root systems absorb and dissipate energy during hurricanes and cyclones, protecting inland areas and settlements.
3. Carbon Sequestration: Mangroves efficiently absorb carbon dioxide from the atmosphere, storing it in their biomass and sediments, contributing to carbon sequestration efforts.
4. Fisheries and Livelihoods: Mangroves provide crucial nursery areas for fish and shellfish, enhancing fishery productivity and supporting local livelihoods and food security.
5. Water Quality Improvement: Mangroves serve as natural filters, removing pollutants and excess nutrients from coastal waters, preserving marine ecosystem health and maintaining coastal ecosystem balance.
6. Tourism and Recreation: Mangroves offer recreational opportunities such as eco-tourism and nature-based activities like birdwatching and kayaking, promoting sustainable economic growth and fostering appreciation for mangrove conservation.

Challenges Faced by Mangrove Ecosystems

1. Habitat Destruction and Fragmentation: Mangroves face clearance for agriculture, urbanisation, aquaculture, and infrastructure, leading to habitat loss and fragmentation, disrupting ecosystem functioning.
2. Climate Change and Sea Level Rise: Rising sea levels and extreme weather events threaten mangroves, causing damage and loss.
3. Pollution and Contamination: Agricultural runoff, industrial discharge, and improper waste disposal pollute mangrove habitats, harming flora and fauna.
4. Lack of Integrated Management: Mangroves are often managed in isolation, neglecting their interconnectedness with adjacent ecosystems, necessitating integrated management approaches.
5. Overfishing and Unsustainable Harvesting: Overfishing and unsustainable harvesting of resources like fish and timber diminish mangrove ecological and economic value.
6. Invasive Species: Non-native species like the red mangrove compete with natives, altering mangrove ecosystems’ structure and function.

Conservation Strategies: 

• Implement stricter laws and enhance enforcement to prevent harmful activities.
• Establish mangrove adoption programs involving the public in conservation efforts.
• Invest in mangrove research and development for innovative conservation solutions.
• Empower local communities and ensure diverse species in restoration efforts for resilient mangrove ecosystems.

Source: IE  DTE  IUCN

Global Food Policy Report 2024

Tags: GS- 3 , Environment & Ecology- Food Systems- Important International Institutions- IFPRI

Context: 

• The International Food Policy Research Institute (IFPRI) recently released the Global Food Policy Report 2024 on “Food Systems for Healthy Diets & Nutrition.” 
• The report emphasises that a larger proportion of the population consumes unhealthy foods such as salty or fried snacks compared to nutritious options like vegetables and fruits.

Key highlights of Global food policy report 2024:

In South Asia:

• Cost Disparities in Food: Micronutrient-rich foods are costly, while cereals, fats and oils, and sugar are comparatively cheaper.
• High Cost Premium for Nutrient-Adequate Diets: South Asia exhibits the highest cost premium for nutrient-adequate diets. For instance, dark green leafy vegetables and vitamin A-rich foods are priced 22 times higher per calorie compared to starchy staples.
• Policy Priorities: Policies in South Asia prioritise starchy staples over diverse, healthy diets. Examples include price guarantees for rice, wheat, and sugarcane in India, and Sri Lanka’s provision of subsidised fertiliser to rice farmers.
• Focus of Public Investments: Public investments predominantly target rice and wheat productivity, neglecting coarse grains and pulses, which are essential components of a diverse and nutritious diet

In India:

• Unhealthy Food Consumption: 38% of Indians consume unhealthy foods, while only 28% include all five recommended food groups (fruits, vegetables, proteins, grains/starch, and dairy) in their diet.
• Rise of Calorie-Dense, Nutrient-Poor Foods: Calorie-dense, nutrient-poor foods are increasingly prevalent, with snacks and prepared foods gaining prominence after cereals and milk.
• Increased Consumption of Processed Foods: Consumption of processed foods like chocolates, salty snacks, and beverages is on the rise, with packaged food spending doubling to reach 12% of household food budgets.
• Wealth Disparities in Food Spending: Wealthier households allocate more spending to processed foods, potentially reducing healthier food consumption among this demographic.
• Rise in Spending on Meals away from Home: Spending on meals outside the home surged from Rs 619 billion in 2015 to Rs 820 billion in 2019.
• Double Burden of Malnutrition: Many countries, including India, face a double burden of malnutrition, with issues of undernutrition, micronutrient deficiencies, overweight, and diet-related diseases prevalent.
• Affordability of Healthy Diets: Over two billion people worldwide, particularly in Africa and South Asia, cannot afford a healthy diet. Nearly 17% of Indians do not receive adequate dietary energy for a healthy life.

Impact:

• Malnutrition in India: Approximately 16.6% of India’s population suffers from malnutrition due to poor diet. This figure has increased from 15.4% in 2011 to 16.6% in 2021.
• Micronutrient Deficiencies: More than half of children under five and two-thirds of adult women in India face micronutrient deficiencies, highlighting the widespread nature of the issue.
• Coexistence of Undernutrition and Overweight/Obesity: In South Asia, including India, Pakistan, and Afghanistan, high levels of undernutrition and micronutrient deficiencies coexist with the rising prevalence of overweight and obesity. 

Source: DTE

LignoSat: World’s First Wooden Satellite

Tags: GS- 3 – Science & Technology – Space

Context :

• Kyoto University and the logging company Sumitomo Forestry in Japan have developed the world’s first wooden satellite, LignoSat.

• LignoSat is scheduled to launch on a SpaceX rocket from the Kennedy Space Centre.
• The satellite is a mere 10 centimetres on each side and is crafted from magnolia wood, which was selected for its strength and workability.
• This wooden satellite would completely burn upon re-entry into Earth’s atmosphere.
• It will be delivered to the International Space Station (ISS), where it will be deployed for a series of tests to assess its strength and ability to withstand extreme temperature fluctuations.

Significance of LignoSat:

• Environmental Impact: Burns into ash on re-entry, leaving no harmful residues.
• Scientific Role: Equipped with sensors and cameras to study the behaviour of wood in space.
• Innovation: Demonstrates the potential of wood as a sustainable material for space exploration.

The Need For Such Satellites: 

• Sustainability: Addresses the need for eco-friendly space exploration by using biodegradable materials, countering the threat of persistent non-biodegradable materials.
• Space Debris Management: Provides a solution to the growing issue of space debris by utilising biodegradable satellites to mitigate threats to spacecraft and the environment.
• Environmental Protection: Research emphasises the environmental impact of space debris, such as aluminium contributing to ozone depletion. This underscores the importance of sustainable satellite design to protect the Earth’s atmosphere and ecosystems.

Source: (NDTV)

WIPO Treaty: Big win for India and Global South 

Tags: GS – 2,GS -3- Government Policies & Interventions– Intellectual Property Rights (IPRs)

Context: 

• The recently concluded world intellectual property organisation (WIPO) treaty concerning Intellectual Property (IP), genetic resources (GRs), and Associated traditional knowledge (ATK) represents a substantial victory for global South nations, including India.

Key highlights of the WIPO Treaty:

• Protection of Biodiversity: Balancing the rights of biodiverse countries and traditional wisdom with the global Intellectual Property Rights (IPR) system.
• Inclusion of Traditional Knowledge: Acknowledging traditional knowledge systems within the global IP framework for the first time.
• Promotion of Inclusive Innovation: Recognizing the link between local communities, Genetic Resources (GRs), and Associated Traditional Knowledge (ATK), thereby fostering inclusive innovation.
• Disclosure Requirements: Mandating patent applicants to disclose the origin or source of genetic resources when their invention is based on such resources or associated traditional knowledge.

Significance for India and the Global South:

• For the India:
  • Recognition of Biodiversity : Acknowledges India as a mega biodiversity hotspot with rich traditional knowledge, marking the first inclusion of these systems into the global IP framework.
  • Prevention of Misappropriation: Provides crucial protection to Indian Genetic Resources (GRs) and Associated Traditional Knowledge (ATK) by mandating disclosure obligations, preventing their misappropriation in countries lacking such laws.
  • Combating False Claims: Addresses past instances of false claims on Indian herbs and products as foreign inventions, enabling India to contest such patent applications effectively.
  • Establishment of Global Standards: Sets unprecedented standards within the IP system for countries rich in GRs and ATK, elevating India’s status as a provider nation and ensuring fair recognition and protection globally.

• For the Global South:
  • Preservation of Traditional Knowledge: Recognizes the abundant traditional knowledge on medicinal plants, agriculture, and other domains within the Global South, safeguarding these invaluable heritage passed down through generations.
  • Combatting Biopiracy: Combating biopiracy by instituting a legal framework to safeguard genetic resources and traditional knowledge from unauthorised commercial exploitation, ensuring equitable benefit-sharing and protection of indigenous rights.

Initiatives for Access and Benefit-sharing of GR and TK:

• Patents (Amendment) Act, 2005: Protects indigenous community rights by requiring patent applicants to disclose the origin of biological resources in their inventions.
• The Traditional Knowledge Digital Library (TKDL), established in 2001, addresses challenges in overturning patents on traditional remedies like turmeric and neem.
• Trademark Act, 1999: Founded on principles of distinguishability and prevention of confusion, trademarks differentiate goods and clarify product source.
• International initiatives: Convention on Biological Diversity, Nagoya Protocol, TRIPS agreement, International Treaty on Plant Genetic Resources for Food and Agriculture and Commission on Genetic Resources for Food and Agriculture. 
• UNESCO’s Local and Indigenous Knowledge Systems (LINKS): It is an interdisciplinary initiative that promotes indigenous and local knowledge and its meaningful inclusion in environmental policy and action.

Source: PIB  TH

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