In News: India is aiming to make the rupee a global currency. Pushing for a roadmap towards the internationalization of the rupee.

About

• The internationalization of the rupee refers to the process of promoting and increasing the acceptance and usage of India's currency, the rupee, in international markets and transactions. It involves creating an environment where the rupee is widely recognized and utilized for cross-border trade, investments, reserves, and other financial activities.
• It includes measures such as facilitating rupee-denominated transactions, allowing the rupee to be freely convertible, establishing offshore rupee markets, and encouraging foreign entities to hold and use the rupee.

Current Status of Internationalization of Rupee:

• Limited progress in internationalizing the rupee: The rupee's global foreign exchange market share is only around 1.6%, and India's share of global goods trade is a mere 2%.
• Steps taken to promote internationalization: India has implemented measures to encourage the internationalization of the rupee. For instance, it has allowed external commercial borrowings in rupees and urged Indian banks to open Rupee Vostro accounts for banks from countries like Russia, the UAE, Sri Lanka, and Mauritius. Additionally, trade in rupees with approximately 18 countries has been facilitated.
• Constraints on currency exchange: India imposes significant limitations on currency exchange due to concerns over capital flight and exchange rate volatility. Full capital account convertibility, which enables unrestricted movement of local financial investments into foreign assets and vice versa, is not permitted.
• Concerns of neighboring countries: The internationalization of the rupee must consider and address the concerns raised by neighboring countries of India. In particular, Bhutan and Nepal experienced a loss of confidence in the Indian rupee due to the impact of the demonetization measure implemented in 2016.

Benefits of Internationalising the Rupee

Challenges of Internationalizing the Rupee

• Internationalizing the rupee increases its exposure to exchange rate volatility, affecting trade competitiveness, foreign investment flows, and financial market stability.
• Opening up the rupee to international markets may lead to capital flight, straining foreign exchange reserves, impacting financial stability, and posing challenges for monetary policy management.
• Capital controls in India restrict foreign investment and trading, limiting the rupee's use as an international currency.
• The rupee faces competition from established currencies like the US dollar, euro, and yen, which are widely accepted and liquid.
• To promote the rupee for international transactions, trust, familiarity, and confidence in the currency must be established among market participants, including businesses, individuals, and financial institutions.

https://indianexpress.com/article/explained/explained-economics/internationalisation-rupee-benefits-meaning-explained-8787412/#:~:text=While%20reserves%20help%20manage%20exchange,less%20vulnerable%20to%20external%20shocks.

Why in News: Recently, Supreme Court asked NGO to make a representation before the Ministry of Panchayati Raj regarding Sarpanch-Patism

Sarpanch Pati:

• It is the practice where husbands of women sarpanches exercise undue influence on the work of their elected wives.
• While the women get political representation, the real power is usurped by their husbands
• Examples:
  • In a case in Ratlam in Madhya Pradesh, a man even had a ‘power of attorney’ document which gave him the right to take decisions in place of the elected woman sarpanch whose election expenses he had purportedly paid for.
  • A woman sarpanch from Odisha also ‘authorised’ her husband to carry out her duties as sarpanch saying that she did not do it under pressure but citing domestic responsibilities.

Reasons behind the practice of sarpanch pati:

• Patriarchal gender norms of society.
• Poor social status of a woman with high levels of illiteracy.
• Lack of capacity building and training for women to take leadership roles in local government.
• Lack of strong deterrence laws to punish men in these cases.
• Lack of recognition of women and their contributions.

Constitutional Provisions:

• The 73rd Amendment in 1992 established a three-tiered panchayat system with regular elections throughout India.
• According to the article 243D, “One-third of the total number of seats reserved under clause (1) shall be reserved for women belonging to Scheduled Castes or, as the case may be, the Scheduled Tribes”.

Way Forward:

• Strict interventions are required to reform the structure of local political institutions which enable patriarchal practices to persist despite laws aimed at giving women a political voice.
• Connecting first-time female elected officials with more experienced female politicians to build supportive, empowering networks for women who may feel isolated in positions of power.

https://www.thehindu.com/news/national/supreme-court-asks-ngo-to-move-govt-against-sarpanch-patism/article67048843.ece#:~:text=A%20Bench%20of%20Justices%20Sanjay%20Kishan%20Kaul%20and,the%20Ministry%20of%20Panchayati%20Raj%20on%20this%20issue.

Why in News: As the basic structure doctrine highlighted in the Kesavanada Bharati case has touched 50 years, its efficacy to protect the natural rights of the citizen vis-à-vis the due process clause is worth examining

Due Process of Law:

• The principle of Due Process of Law has been taken from United States of America.
• It means that no person shall be deprived of life, liberty, or property, without due process of law.
• The term ‘law’ in the due process clause stands for natural law. Natural law, as higher law, renders state-made laws invalid when the state-made laws are contrary to natural law.
• In Maneka Gandhi vs Union of India (1978), the SC held that when ‘personal liberty’ under Article 21 was affected by any law, courts would seriously interrogate and probe the purpose, rationale, and legitimacy of the law.

Basic Structure Doctrine:

• The Basic Structure Doctrine is an innovation of judiciary enunciated by the SC in the Kesavananda Bharati case (1973).
• A 13-judge Constitution Bench of the SC (with a 7-6 majority) ruled that the “basic structure” of the Constitution is inviolable, and cannot be amended by Parliament.
• The basic structure doctrine has formed the bedrock of judicial review of all laws passed by the Parliament.
• The list of features of the basic structure doctrine is not fixed. They are a result of judgements of various cases in Supreme Court.

Comparison of both principles:

• The due process principle was duly discussed by the Constituent Assembly but the basic structure doctrine was not in the context at that time.
• The due process clause has a splendid place in the constitutional history of the world.
• It is the due process clause, not the basic structure doctrine, that offers a surer guarantee for the citizen’s natural rights.

https://www.thehindu.com/opinion/op-ed/due-process-clause-or-basic-structure-doctrine/article67054681.ece#:~:text=It%20is%20the%20due%20process,Unlawful%20Activities%20(Prevention)%20Act.

In News: Digital platforms and technology have expanded the reach of Indian artisans and has given the boost to the creative economy. However, the sector continues to face unique challenges in terms of limited investments, theft and intellectual property infringement.

About the Creative Economy:

• Creative economy refers to the sector of economy that involves the creation and exploitation of creativity or knowledge. It includes areas such as art, music, film, design, and digital content creation.
• It is estimated that the creative economy contributes to around 8% of the country’s employment which is higher than the corresponding share in Turkey (1%), Mexico (1.5%), Australia (2.1%), etc.
• UNESCO World Conference on Cultural Policies and Sustainable Development (MONDIACULT 2022) recognized culture’s economic importance and transformative power for sustainable development.

Challenges faced by the artists:

• Sustainability and market access: Artists face the challenge of economic sustainability, market access, and the preservation of traditional art forms in a rapidly changing society.
• Unequal representation and inequitable opportunities: Lack of transparency in the selection process, for government support and initiatives to provide financial assistance, training programmes etc. leaves talented artists outside the city unable to gain from sponsorships.
• Lack of public and private investments creates another impediment for the artists who have meagre resources at their disposal to conduct market research, carry out business facilitation, and to build a platform.
• Crime in the art world includes art theft, copyright infringement, forgery, fraud, and illicit trafficking pose significant challenges. Lack of technology to verify the original artwork is another roadblock.
• Exploitation of Indian artists, unaccounted money preserved through artworks, and dissemination of disinformation about cultural history.

Solutions for the creative economy

• Promoting a collaborative cultural economy: Creating a collaborative model that supports the cultural economy is vital. This includes encouraging tech-based start-ups in the arts sector.
• Capacity-building centre for artists: A capacity-building centre can offer guidance, technical support, infrastructure, and access to investors, contributing to India’s soft power.
• Training and professional development: Artists need training, professional development, and market access. Networking within larger communities can also foster knowledge sharing.
• Leveraging data analytics: Data analytics can be utilised to foster creative ecosystems that highlight emerging trends and inform policy recommendations.
• Facilitation mechanism for artists and entrepreneurs: A facilitation mechanism can focus on fostering knowledge sharing, networking, and economic empowerment for individual artists and creative entrepreneurs.

Source:

https://thehindu.com/opinion/op-ed/choose-a-new-palette-for-indias-creative-economy/article67046426.ece

In News: The Indian Navy Marching Contingent arrived in France for participation in the Bastille Day Parade at Paris, as part of the Tri services contingent.

About the Bastille Day:

• The National Day of France, which is celebrated on July 14^th every year, is also known as Bastille Day.
• Bastille was a fortress prison located in the heart of Paris, which had become a symbol of royal tyranny and oppression.
• The fall of the Bastille is widely considered the beginning of the French Revolution. The event also marked the beginning of a period of intense violence and social upheaval in France.
• The fall of the Bastille symbolised the people’s victory over the monarchy and the end of the old regime. The event led to the abolition of feudalism, the Declaration of the Rights of Man and Citizen, and the establishment of the First French Republic.
• The principles of liberty, equality, and fraternity espoused during the French Revolution have had a profound impact on the world’s political and social landscape. These values have influenced many other revolutionary movements throughout history.

Indo-French Relationships:

• Indian Navy is participating in the Bastille Day Parade and will be represented by 4 officers and 64 sailors along with INS Chennai, an indigenously built frontline destroyer.
• Deepening defence cooperation:
  • France has emerged as India’s second largest arms supplier after Russia. Major military equipment imported from France include the Rafale and Mirage 2000 Fighter Aircraft and Scorpene Submarines.
  • Maritime relations: India and France enjoy deep ties in the maritime domain which extend indigenous construction of the Project 75 submarines by Mazagon Dock Limited and Naval Group, France.
  • Bilateral exercises such as Varuna, Garuda and Shakti have strengthened defence ties and interoperability between the two countries. It reflects the growth of Indo-French strategic bilateral relationship.

Source:

https://pib.gov.in/PressReleasePage.aspx?PRID=1937964#:~:text=The%20Indian%20Navy%20Marching%20Contingent,led%20by%20Cdr%20Vrat%20Baghel.

In News: U.S. destroys last of its declared Chemical Weapons closing a deadly chapter dating to World War I

About Chemical Weapons Stockpile

• The United States has recently achieved a major milestone by successfully destroying its entire declared chemical weapons stockpile.
• The historic event took place at the Blue Grass Army Depot in Kentucky, where the last remaining chemical weapons were eliminated.
• Rockets filled with GB nerve agents commonly known as “sarin” were destroyed, concluding a decades-long campaign to eliminate the stockpile that once totalled over 30,000 tons.
• This accomplishment signifies the end of a prolonged campaign to eliminate the stockpile that dates back to World War I.
• The United States met the deadline set by the international Chemical Weapons Convention, which required the elimination of its remaining chemical weapons.
• Overall, the destruction of these weapons sends a strong message that such instruments of warfare are no longer acceptable and sets an example for other countries to follow.

Chemical Weapon Convention (CWC)

• It is an international arms control treaty adopted in 1993 and entered into force on April 29, 1997 which is aimed at eliminating chemical weapons worldwide.
• It is considered one of the most comprehensive disarmament treaties, with 193 member states.
• Its primary goal is to prevent the production, acquisition, stockpiling, and use of chemical weapons.
• The CWC also establishes the Organization for the Prohibition of Chemical Weapons (OPCW) as its implementing body.
• Under the CWC, member states commit to destroying their existing chemical weapon stockpiles and dismantling related production facilities.

https://www.thehindu.com/news/international/us-destroys-last-of-its-declared-chemical-weapons-closing-a-deadly-chapter-dating-to-world-war-i/article67055340.ece

In News: United Nations Economic and Social Commission for Asia Pacific’s (UNESCAP) releases the Global Survey on Digital and Sustainable Trade Facilitation

About Global Survey on Digital and Sustainable Trade Facilitation:

• India has achieved outstanding performance in the recently published Global Survey on Digital and Sustainable Trade Facilitation by UNESCAP.
• The survey assesses trade facilitation measures and their effectiveness in promoting digitalization and sustainability in international trade.
• The survey recognizes India's initiatives, including Turant Customs, Single Window Interface for Facilitation of Trade (SWIFT), and Pre-Arrival data processing,
• Major findings:
  • India achieved an impressive score of 55% in the 2023 survey, showcasing its commitment to trade facilitation.
  • The country's score improved from 32% in 2021, indicating continuous progress and efforts in enhancing trade facilitation practices.
  • India received a perfect score of 100% in key areas such as Transparency, Formalities, Institutional Arrangement and Cooperation, and Paperless Trade.
  • India emerged as the best-performing country in the South Asia region and surpassed several developed countries, including Canada, France, UK, and Germany.
  • India witnessed a significant improvement in the "Women in Trade Facilitation" component, with the score rising from 66.7% in 2021 to 8% in 2023.
• The progress reflects India's commitment to gender inclusivity and empowering women in the trade sector and dedication to embracing digitalization and sustainability in trade facilitation.
• India's success in UNESCAP's Global Survey demonstrates its commitment to the Sustainable Development Goals (SDGs) and sustainable economic growth.
• Overall, the survey serves as a valuable tool for India to benchmark its performance, identify areas for improvement, and foster knowledge sharing and collaboration with other countries.

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1938008

Why in news? The recent clashes in Manipur has raised attention of many leaders who called for a reunification of the Zo people in view of the continuing ethnic violence between the dominant Meiteis and the Kuki-Zomi tribes in the neighbouring state.

About:

• Manipur’s Kuki-Zomi peoples come under the larger umbrella of the Zo ethnic tribes, one of the largest of which are the Lushei of Mizoram.
• The Zo peoples include all tribes of the Chin-Kuki-Mizo ethnic group spread across Myanmar, India, and Bangladesh, along with many sub-tribes and clans such as the Chin, Kuki, Mizo, Lushei, Zomi, Paitei, Hmar, Ralte, Pawi, Lai, Mara, Gangte, Thadou, etc.
• The tribes share a common history, including migration and settlements in different regions, and are connected by their Christian faith.
• The movement for Zo reunification, while emotionally appealing to the people of Mizoram, faces political challenges in terms of carving out areas from Manipur, Tripura, and neighbouring countries for integration with Mizoram.

https://indianexpress.com/article/explained/explained-politics/ethnicity-religion-a-shared-history-ties-that-bind-the-zo-peoples-of-manipur-mizoram-8751504/

Why in news? India’s first Tele-MANAS chatbot, which will start an instant conversation with people in distress, has been launched recently in Jammu and Kashmir (J&K).

About:

• Tele Mental Health Assistance and Networking across States (Tele-MANAS) initiative has been launched by Ministry of Health & Family Welfare during October 2022.
• The initiative will ensure round-the-clock services for health counsellors, clinical psychologists and consultants.
• It aims to provide free tele-mental health services all over the country round the clock, particularly catering to people in remote or under-served areas.
• Under the Ministry of Health and Family Welfare, Tele-MANAS is a two-tier system.
  • Tier 1 comprises State Tele MANAS cells, which includes trained counsellors and mental health specialists.
  • Tier 2 comprises specialists at District Mental Health Programme (DMHP)/Medical College resources for physical consultation and/or eSanjeevani for audio visual consultation.

More Information:

• The Indian Government announced the National Tele Mental Health Programme (NTMHP) in the Union Budget 2022-23.
• The National Institute of Mental Health and Neurosciences (NIMHANS) in Bengaluru is the nodal centre for the programme.

https://www.thehindu.com/news/national/jk-launches-indias-first-chatbot-for-people-in-mental-distress/article67046179.ece

Why in news? Recently, The Central Research Institute for Dryland Agriculture (CRIDA), an institution under the Indian Council of Agricultural Research (ICAR), has developed a unique early warning system known as the “farmers’ distress index.”

About:

• The main aim behind creating such an index is to minimise the agrarian distress in the form of crop loss/failure and income shock.
• The index tries to anticipate the Agrarian distress and prevent its spread from a few farmers to the village or block level.
• It will enable various entities such as the central government, state governments, local bodies, and non-governmental agencies to receive early warnings about impending farmers' distress, thus facilitating proactive interventions.
• Methodology to track distress:
  • The index’s methodology involves monitoring local newspapers, news platforms, and social media for reports of distress, followed by telephonic interviews with small and marginal farmers to assess early signs of distress using standardized questions.
  • These interviews incorporate 21 standardized questions designed to detect early signs of distress.
  • The responses are then mapped against seven indicators:

1. 1. exposure to droughts, floods, crop failure due to pest attacks, livestock deaths
   2. debt
   3. adaptive capacity of farmer and local government through different schemes
   4. land holding and irrigation facilities
   5. sensitivity, mitigation and adaptation strategies like growing of contingency crops if main crop fails.
   6. triggers for immediate distress like health-related expenditure
   7. socio-psychological factors and impacts.

• The index allows for targeted interventions, such as focusing on improving women’s incomes if the distress is gender-based.
• Interpretation of the Index:
  • Based on the collected data and responses, the index will assign a value between 0 and 1 to indicate the level of distress.
    • 0 to 0.5: Low distress,
    • 5 to 0.7: Moderate" distress
    • Above 0.7: Severe" distress.
  • If the distress level is severe, the index identifies the specific component contributing the most to farmers' distress among the seven indicators.
• Current solutions:
  • Direct money transfer, mid-term release of claims under government’s crop insurance scheme (Pradhan Mantri Fasal Bima Yojana, PMFBY) in case of crop failures, providing work under Mahatma Gandhi National Rural Employment Guarantee Act, enhanced rationing under Public Distribution System, among others may alleviate farmer’s distress.

https://www.downtoearth.org.in/news/agriculture/explainer-what-is-the-farmers-distress-index-90439

Why in news? Recently, National Green Tribunal highlighted the failure of the Goa Coastal Zone Management Authority to follow environmental rules for construction on Khazan land at Cavelossim.

About:

• Khazan is the coastal wetlands of Goa which cover about 5% of the total geographical area of Goa.
• They were reclaimed from mangrove forests (in the pre-Christian Era) by an intricate system of dykes, sluice gates and canals.
• It is used for shrimp farming, agriculture and salt production. These act as the main drainage system during floods.
• It is a low-lying, salt water-logged area that is affected by tidal flow.

https://m.timesofindia.com/city/goa/rap-for-coastal-body-over-approval-for-construction-on-khazan-land/articleshow/101496144.cms

Why in news? After more than a century of curiosity, scientists have finally unravelled the mystery behind Antarctica’s Blood Falls, a bright red waterfall that flows from Taylor Glacier.

About:

• The red waterfall is located in the McMurdo Dry Valleys region of Antarctica.
  • McMurdo Dry Valleys is regarded as one of the coldest and least habitable places in the world.
• The iconic red hue is caused by the presence of small “iron-rich nanospheres” (various elements such as iron, silicon, calcium, aluminium, and sodium) in the water.

• They are highly abundant in the meltwaters of Taylor Glacier, which was named after the British scientist Thomas Griffith Taylor who first noticed the Blood Falls on the 1910 to 1913 expedition.
• Taylor Glacier
  • The Taylor Glacier is an Antarctic glacier about 54 kilometres long, flowing from the plateau of Victoria Land into the western end of Taylor Valley, north of the Kukri Hills, south of the Asgard Range.

https://www.wionews.com/science/century-old-mystery-behind-antarcticas-blood-falls-finally-solved-612218

Why in news? India is set to establish its first Indian Institute of Technology (IIT) campus outside the country in Zanzibar, Tanzania.

About:

• Zanzibar is an archipelago off the coast of east Africa that united with Tanganyika in 1964 to form the United Republic of Tanzania.
• It is a semi-autonomous region of Tanzania.
• It is Stone Town, a historic trade centre with Swahili and Islamic influences.
• Tanzania
  • Tanzania is the largest country in East Africa and includes the islands of Zanzibar, Pemba, and Mafia.
  • They include the plains of Serengeti National Park, populated by the “big five” game (elephant, lion, leopard, buffalo, rhino), and Kilimanjaro National Park, home to Africa’s highest mountain.

https://www.hindustantimes.com/india-news/india-and-tanzania-sign-agreement-to-establish-first-indian-institute-of-technology-iit-campus-abroad-in-zanzibar-101688669625366.html

Exam View: India’s advantageous labour force; The goal, focus and path to a productive labour market in India.

Context: India needs to create opportunities for existing labour force and new entrants by improving productivity.

Background: India’s advantageous labour force

• Average age:
  • India’s average age is 29 years, whereas the average age in US, China, France, Germany and Japan is 38, 38, 42, 45 and 48 years, respectively.
• Working age population:
  • India, with its huge population, is now in a phase in which its working-age population is rising and the old-age dependency ratio is coming down.
  • The world, in contrast, is ageing with an increase in the population of the aged and a drastic reduction in fertility rates.
• Dependency ratio:
  • India’s old-age dependency ratio will reach 37 percent in 2075, whereas the same will be 55.8 percent in France, 75.3 percent in Japan, 49.3 percent in the US, 53 percent in the UK and 63.1 percent in Germany.
• Fertility rates:
  • Most countries are experiencing record low fertility rates and a shrinking labour force.
  • China is experiencing 6.77 births per 1,000 people.

Decoding the editorial: The labour market in India

Goal:

• There is a need to create opportunities for the existing labour force and the new entrants into the labour market by improving their productivity.
• There is a need to shift a major chunk of the 45.5 percent of the labour force engaged in agriculture with low and negligible labour productivity.

Sectors in focus:

• As most of the labour force in India has limited education and skill sets, they can be used in labour-intensive manufacturing such as textiles, toys, footwear, auto components, sports goods and agricultural processing.
• Sectors like restaurants, hotels, mining and construction, healthcare and caregiving services have huge potential.
• For the manufacturing sector to grow, the following areas need to be focused upon:
  • Infrastructure development to reduce trade and transaction costs,
  • Trade facilitation measures,
  • A better IPR ecosystem,
  • Ease of doing business on the ground, and
  • Rationalisation of labour laws and the taxation system.
• MSMEs need support in improving competitiveness, achieving scale, digital infrastructure, technology up-grade and branding to be part of a larger supply chain and the global value chains.

Path to a productive labour force

• Skilling, reskilling and up-skilling
  • 93 percent of the employment in India is absorbed by the unorganised sector, where workers are employed in underpaid jobs.
  • Skilling can help India reap the demographic dividend and be a source of labour supply for the world by making the labour force more productive and efficient.
  • Skill development programmes such as the Jan Shikshan Sansthan, the Pradhan Mantri Kaushal Vikas Yojana and the National Apprenticeship Promotion Scheme are welcome steps.
  • The skill mission has the MSDE Vision 2025 in sight which is set to improve linkages between education and skill, catalyse demand for formal skills and create a high-skilled ecosystem.
• Quality health facilities
  • Though India is a pharmaceutical giant with a $50 billion industry and is a global leader in vaccines, accounting for about 60 percent of DPT, BCG and measles vaccines, it has to assure for the majority of the population:
    • Scaled up access and quality health services,
    • Affordable drug prices,
    • Reduced out-of-pocket expenditure,
    • Financial medical protection in terms of universal insurance, and
    • Quality health
  • Health equity has been assured to a great extent by reforms such as
    • Ayushman Bharat,
    • Swachh Bharat Mission,
    • Pradhan Mantri Bhartiya Janaushadhi Pariyojana.
  • Quality education facilities
    • The delivery of quality education up to higher secondary education to all is imperative for making a productive labour force.
    • The National Education Policy 2020 has been brought about that gives importance to updating knowledge.
      • It also aims at ensuring productive employment opportunities and dignified work as listed in the United Nations Sustainable Development Goals 2030.
    • The Samagra Shiksha programme was launched in 2018 to provide inclusive, equitable and quality education at all levels of school education.

The next 30 years belong to India provided we accelerate our reforms and achieve the desired results of flagship programmes of Skill India, Make in India, Start-up India, and others. It’s time to focus on labour-intensive manufacturing and human capital.

Source:

https://indianexpress.com/article/opinion/columns/create-opportunities-for-labour-force-and-new-entrants-by-improving-productivity-8778270/