Daily Prelims Notes 21 November 2023

November 21, 2023
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

21 November 2023

Table Of Contents

1. Finland closes four crossing points on Russia border

Subject: IR

Section: Places in news

Context: Finland closes four crossing points on Russia border

More about the news:

Finland has closed four border crossings with Russia in response to an increase in asylum seekers, blaming Moscow for directing migrants to these points in retaliation for Finland joining NATO.
About 300 asylum seekers have arrived in Finland this week, with authorities accusing Russia of deliberately aiding people without proper documents to reach the border.
Prime Minister Petteri Orpo accused Russia of engineering the crossings, claiming that people arrive legally in Russia before crossing into Finland to claim asylum.

2. China keen on extending China-Myanmar Economic Corridor to Sri Lanka

Subject IR

Section: Places in news

Context: China keen on extending China-Myanmar Economic Corridor to Sri Lanka

More about the news:

China is reportedly prioritizing the extension of the China-Myanmar Economic Corridor (CMEC) to Sri Lanka, as revealed by the Chinese President’s Special Envoy during a meeting with Sri Lankan President Ranil Wickremesinghe.
The Corridor is part of China’s Belt and Road Initiative (BRI), and both nations aim to accelerate the implementation of the China-Sri Lanka Free Trade Agreement.
Sri Lanka, actively participating in the BRI, sees the extension as part of the second phase, expecting a more substantial economic impact.
China has been supportive of Sri Lanka’s debt restructuring program amid ongoing discussions with official creditors for economic recovery.
The CMEC is the newest of the six land corridors under the BRI, and has assumed prominence in place of the Bangladesh China India Myanmar (BCIM) corridor which has largely stalled.

Some more facts about China-Myanmar Economic Corridor:

China-Myanmar Economic Corridor (CMEC) is a number of infrastructure projects supporting connectivity between Myanmar and China.
It is an economic corridor of the Belt and Road Initiative building road and rail transportation from Yunnan Province in China through Muse and Mandalay to Kyaukpyu in Rakhine State.

3. Governor can’t withhold repassed Bills, says SC

Subject: Polity

Section: Federalism

Context: Governor can’t withhold repassed Bills, says SC

More about the news:

The Supreme Court acknowledged the Tamil Nadu government’s argument that once Bills have been “re-passed,” the Governor lacks the discretion to withhold assent.
The court reacted to the State’s submission that under Article 200, once a Bill is re-passed, the Governor cannot withhold assent.
The Chief Justice noted that Bills re-passed are akin to Money Bills, making rejection by the Governor impermissible.
The court also recognized that the Governor, having withheld assent and returned the Bills once, cannot refer them to the President.
The case involves 10 Bills pending with the Governor’s office since January 2020.

What does the Constitution say:

Article 200 of the Constitution outlines four options available to a Governor when a legislature-passed Bill is presented for assent:
- Grant assent immediately.
- Withhold assent.
- Return the Bill to the legislature, requesting reconsideration of the Bill or specific provisions.
If the legislature reapproves the Bill, with or without accepting Governor-suggested amendments, the Governor is constitutionally obligated to grant assent.
Alternatively, the Governor may reserve the Bill for the President’s consideration.
In the case of Presidential consideration i.e. Article 201 the decision to grant or withhold assent is made by the President. Notably, there is no specified timeframe for the President to decide on the Bill’s outcome.

Do Governors have discretion:

Governors did have a discretion to return Bills before the first provision in the draft Article 175(now Article 200).
This was amended by the Constituent Assembly in 1949.
The first provision to Article 200 is thus a saving clause and retains the discretion over the fate of the Bill solely in the hands of the State Cabinet.
Article 163 makes it clear the Governor is not expected to act independently.
The Supreme Court in the Shamsher Singh case verdict has held that a Governor exercises all his powers and functions conferred on him by or under the Constitution on the aid and advice of his Council of Ministers save in spheres where the Governor is required by or under the Constitution to exercise his functions in his discretion.
The assent or return of the Bill does not involve the discretion of individuals occupying the Governor’s post.

Can a Governor in practice actually sit on a Bill forever:

Granting assent to Bills is among the limited areas where the Governor has discretionary powers. However, the exercise of this discretion must adhere to constitutional principles, relying on compelling reasons rather than personal preferences.
Notably, Article 200 employs the term “shall,” suggesting that the Constitution framers intended a mandatory requirement for Governors in this regard.

What were the recommendations of different commission:

The Sarkaria Commission (1987) has emphasized that the Governor’s power to reserve Bills for the President’s consideration is a rare and implied discretionary authority, primarily applicable in cases of unconstitutionality.
In all other instances, the Governor should adhere to Article 200, acting on ministerial advice.
The commission suggested that the President should resolve such Bills within a maximum of six months, communicating reasons for withholding assent when possible.
Despite recommendations from the Punchhi Commission (2010) to decide on Bills within six months, these proposals remain unimplemented.

What are various Supreme Court observations w.r.t Governor

Purushothaman Nambudiri vs State of Kerala (1962):
- The Constitution Bench clarified that no specific time limit is imposed by the Constitution for the Governor to provide assent to Bills.
- Emphasized that the Governor must align actions with the will of the Legislature and operate in harmony with their Council of Ministers.
- The Supreme Court asserted that withholding assent to a law validly passed by the Legislature constitutes a direct attack on the federal structure of the Constitution. Noting that causing delays in assenting to Bills would be an arbitrary exercise, contradicting the constitutional spirit.
Shamsher Singh vs State of Punjab (1974):
- A 7-judge Constitution Benchoutlined that the President and Governor should exercise their formal constitutional powers based on the advice of their Ministers, with few well-known exceptions.
Nabam Rebia case (2016):
- The SC cited B R Ambedkar’s observations, stating that the Governor has no independent functions to execute but does have specific duties to perform, urging recognition of this distinction by the House.
- Ruled that Article 163 of the Constitution does not grant the Governor general discretionary power to act against or without the advice of the Council of Ministers.
Rajiv Gandhi assassination case (2018):
- The SC expressed dissatisfaction with the Governor’s delay in taking action on the release of seven convicted prisoners, citing a lapse of more than two years.

What are the other Constitutional Position related to Governor:

Article 153 of the Indian Constitution mandates the appointment of a Governor in each state. The 7th Amendment to the Constitution however, allows for the appointment of the same person as Governor of two or more states.
Article 154: The Governor shall have executive power over the state, which he shall exercise either directly or through officers subordinate to him in conformity with this Constitution.
Article 163: There shall be a council of ministers, led by the Chief Minister, to assist and advise the Governor in the exercise of his powers, except when he is compelled to execute his functions at his discretion.
Article 164: The council of ministers is collectively responsible to the state’s legislative assembly. This provision is the cornerstone of the state’s parliamentary system of governance.
The Governor has the same Executive, Legislative, Financial, and Judicial authorities as the President of India. However, the Governor’s power is restricted in several ways compared to that of the President, as the Governor lacks the President’s military, diplomatic, and emergency authorities.

4. Courts can give limited pre-arrest bail in FIRs from outside state

Subject: Polity

Section: Judiciary

Context: Courts can give limited pre-arrest bail in FIRs from outside the state, said the Supreme Court.

More about the news:

The Supreme Court of India ruled that a Sessions Court or High Court in a state can grant “limited” anticipatory bail to an accused even if the First Information Report (FIR) is registered outside their jurisdiction.
The court emphasized the constitutional imperative of protecting citizens’ rights and acknowledged that an absolute bar on jurisdiction could lead to unjust consequences.
The grant of interim protection should be exercised only in “exceptional and compelling circumstances,” ensuring notice to the investigating officer and public prosecutor.
The ruling aims to prevent abuse by requiring a territorial connection between the accused and the court approached for relief.

What is a Bail:

Bail is the legal release of an accused individual from detention with the stipulation that they will appear in court at a later date.
The concept of bail is addressed in Sections 436 to 439 of the Criminal Procedure Code (CrPC), and it can be granted by either a police officer or a judicial magistrate under the CrPC.

What are different categories of bail:

Bailable offences
- Section 2(a) of CrPC categorizes a bailable offence.
- It means that an offence that is classified as bailable in the First Schedule of the Code, or which is classified as bailable under any other law.
- An accused can claim bail as a matter of right if he is accused of committing a bailable offence.
- Under Section 436 of CrPC 1973, a person accused of a bailable offence at any time while under arrest without a warrant and at any stage of the proceedings has the right to be released on bail.
Non-bailable offences
- A non-bailable offence is defined as any offence which is not a bailable offence.
- A person accused of a non-bailable offence cannot claim bail as a right
- A person accused of non-bailable offences can be granted bail provided the accused does not qualify the following conditions:
  - There are reasonable grounds to believe that he has committed an offence punishable with death penalty or life imprisonment.
  - That the accused has committed a cognizable offence and he had been previously convicted of an offence punishable with death, imprisonment for life or imprisonment of seven years or more or if the accused been convicted on two or more instances of a cognizable and non-bailable offence.

What is Anticipatory Bail:

Anticipatory bail is the provision for granting bail to an individual who anticipates and fears arrest.
As per Section 438 of the Criminal Procedure Code (CrPC), anyone expecting to be charged with a non-bailable offence can seek anticipatory bail.
The application should be submitted to the High Court or Sessions Court having jurisdiction over the alleged crime location.
Anticipatory bail is secured before an arrest occurs, preventing the police from apprehending the individual if the court approves the anticipatory bail.
This measure serves as a protective mechanism for individuals facing false accusations, often arising from personal or professional conflicts, ensuring their release even before any arrest takes place.

What is Transit Anticipatory Bail:

Transit anticipatory bail is pursued when an individual anticipates or is aware of a case being filed against them in a state different from the one in which they are likely to face arrest.
The objective of transit bail is to grant the individual temporary bail, enabling them to approach the relevant court in the state where the case has been filed to seek anticipatory bail.
Without transit anticipatory bail, there is a risk of another state’s law enforcement arresting the person from their home state, denying them the opportunity to apply for anticipatory bail.
The procedure for obtaining transitanticipatory bail mirrors that of any other anticipatory bail application.
Although not explicitly outlined in Indian law, the concept of transit anticipatory bail has evolved through judicial practice and legal precedents.

5. Philippines invites neighbor to frame south China sea conduct rule

Subject: IR

Section: Places in news

Context: Philippines invites neighbor to frame south China sea conduct rule.

More about the news:

The Philippines has initiated discussions with neighboring countries such as Malaysia and Vietnam to create a separate code of conduct for the South China Sea.
President Marcos expressed dissatisfaction with the slow progress in reaching a broader regional pact with China and highlighted the need to collaborate with allies and neighbors to address escalating tensions in the South China Sea.
The move aims to establish a code of conduct outside the ASEAN-China framework and involves countries with existing territorial conflicts, including Vietnam and Malaysia.
China emphasized the importance of formulating a code of conduct but cautioned against any deviation from the existing framework.

More about the South China Sea.

The South China Sea is a marginal sea of the Western Pacific Ocean.
The South China Sea is connected by Taiwan Strait with the East China Sea and by Luzon Strait with the Philippine Sea.
Bordering states & territories (clockwise from north): the People’s Republic of China, the Republic of China (Taiwan), the Philippines, Malaysia, Brunei, Indonesia, Singapore and Vietnam.
The Gulf of Thailand and the Gulf of Tonkin are also part of the South China Sea.
Contesting Claims Over Islands:
- The Paracel Islands are claimed by China, Taiwan and Vietnam.
- The Spratly Islands are claimed by China, Taiwan, Malaysia, Vietnam, Brunei and Philippines.
- The Scarborough Shoal is claimed by the Philippines, China and Taiwan.

6. A fact check unit that is unconstitutional

Subject: Polity

Section: Federalism

Introduction

A critical examination of the Government of Tamil Nadu’s establishment of a Fact Check Unit, highlighting constitutional concerns, the potential impact on freedom of speech, and the challenges posed by ambiguity and absence of due process.

About the Fact Check Unit

A Fact Check Unit is an entity or organization tasked with verifying the authenticity and accuracy of information, particularly in the context of news, announcements, policies, schemes, guidelines, and initiatives of a government or other institutions.

Important Highlights:

Establishment of Tamil Nadu Fact Check Unit: The Government of Tamil Nadu issues an order to create a Fact Check Unit for verifying information related to the state government across diverse media platforms.
Constitutional Concerns: Assertions about the order violating fundamental rights and being constitutionally vague and arbitrary, particularly emphasizing the potential infringement on freedom of speech.
Impact on Freedom of Speech: Examining the implications of the Fact Check Unit on freedom of speech and expression, highlighting the need for reasonable restrictions and challenging the authority of a Government Order in imposing such restrictions.
Chilling Effect Analysis: A deeper analysis of the perceived chilling effect on freedom of speech, exploring the implications of the Government acting as the arbiter of information authenticity.

Key Issues:

Potential Misuse and Scope Ambiguity: Critiques the lack of specificity in defining “information related to the Government of Tamil Nadu,” raising concerns about ambiguity and the possibility of misuse.
Absence of Due Process: Points out the absence of due process, where the Fact Check Unit lacks a mechanism for the author’s hearing, positioning the government as the sole determinant of information authenticity.
Legal Limitations on Government Orders: Discusses the legal limitations of Government Orders in imposing restrictions on freedom of speech, underscoring the need for a more nuanced and legislative approach.
Global Challenges of Misinformation: Draws parallels with global challenges of misinformation, citing events like the U.S. presidential election, and underscores the necessity for effective measures in addressing this widespread issue.

7. Draft National Pharmacy Commission Bill

Subject: Polity

Section: Laws in news

Context

Recently, The Union Ministry of Health and Family Welfare has unveiled the draft National Pharmacy Commission Bill, 2023, signaling a transformative shift in India’s healthcare landscape.
This bill aims to replace the Pharmacy Act, of 1948, and the existing Pharmacy Council of India (PCI) with the forward-looking National Pharmacy Commission.

Important Highlights of the Bill

Elevating Pharmacy Education: The primary objective of the bill is to elevate pharmacy education by enhancing access to affordable, high-quality learning opportunities. It envisions a robust educational framework that prepares future pharmacy professionals to excel.
Universal Access to Pharmacy Services: The bill aspires to make pharmacy services accessible to all, fostering equitable healthcare delivery across the nation.
Integration of Research and Ethical Standards: It encourages pharmacy professionals to seamlessly integrate the latest research into their practice, contribute to ongoing research efforts, and uphold the highest ethical standards.
Transparency and Adaptability: The bill advocates for regular, transparent assessments of pharmacy institutions, the establishment of a national pharmacy register, and the flexibility to adapt to evolving healthcare needs. It also introduces an effective grievance redressal mechanism.

Structure of National Pharmacy Commission

A New Beginning: The bill proposes the establishment of the National Pharmacy Commission, headquartered in New Delhi, heralding the dissolution of the existing Pharmacy Council of India.
Composition: The commission will consist of a Chairperson, 13 ex-officio members, and 14 part-time members.
Three Key Boards: The Central Government will constitute three vital boards under the commission:
Pharmacy Education Board
Pharmacy Assessment and Rating Board
Pharmacy Ethics and Registration Board

Empowering State Chapters

The bill mandates every State Government to establish a state pharmacy chapter within one year from the Act’s commencement.
These chapters will operate under State Law and play a pivotal role in executing the Act’s provisions.
The Pharmacy Ethics and Registration Board will maintain the National Pharmacy Register (NPR), a comprehensive repository containing detailed information about pharmacy professionals, ensuring transparency and accountability.

8. Energy burst in distant galaxy disturbed ionosphere

Subject : Science and Tech

Section: Space sector

Introduction

About two billion years ago, far beyond our Milky Way galaxy, a huge star exploded into a supernova. This explosion sent out a massive burst of gamma rays, the most powerful type of energy wave in the electromagnetic spectrum.
Gamma-Ray Bursts: These bursts are short-lived but incredibly intense, often associated with the most dramatic events in the universe, like the death of massive stars.

Why is it important?

These gamma rays travelled across space for billions of years, finally reaching Earth in 2022.
When they arrived, they caused a significant disturbance in Earth’s ionosphere, a layer of electrically charged gases high in our atmosphere.

About Gamma-Ray Bursts

Gamma-ray bursts (GRBs) are incredibly intense flashes of gamma rays, which are the most energetic form of light in the electromagnetic spectrum. These bursts are the most powerful explosions observed in the universe.
Their Occurrence: They usually happen when massive stars collapse into neutron stars or black holes, or during the merger of neutron stars. These cosmic catastrophes release a tremendous amount of energy.
Duration and Energy: GRBs can last from a few milliseconds to several hours, but they typically last a few seconds. The amount of energy released in this short time can be more than the Sun will emit in its entire 10-billion-year lifetime.
Afterglow: Following the initial burst, GRBs are often followed by an ‘afterglow’ emitted at longer wavelengths (X-ray, ultraviolet, optical, infrared, and radio).

Its Implications

Lasting Effects: The gamma rays disturbed the ionosphere for several hours and even set off lightning detectors in India.
Scientific Importance: Although this burst didn’t harm life on Earth, it showed how sensitive our ionosphere is to space events.
A Rare Event: Such a powerful gamma-ray burst is expected to hit Earth only once every 10,000 years.
Looking Ahead: Protecting Earth from Cosmic Threats
Preparing for Future Events: Scientists are studying the potential risks of a similar event happening closer to Earth, within our own Milky Way.

9. Meet the Langlands Program, the world’s biggest math project

Subject : Science and Tech

Section: Msc

Introduction

Robert Langlands, a mathematician famous for his “Langlands Program,” has shifted his focus to Turkish literature in his later years.
Langlands program is about finding deep links between two areas of math: number theory (the study of numbers) and harmonic analysis (a type of math that breaks down functions or signals into simpler parts).

Langlands Program and its Connection with Different Math Areas

Beginning: In 1967, Robert Langlands, a young mathematician at Princeton, started this journey with a letter to another mathematician, Andre Weil, sharing some groundbreaking ideas.
Complex Ideas: The program is full of complicated ideas that are hard for even experts to fully understand.
Goal: It aims to connect number theory and harmonic analysis, two areas of math that don’t seem related at first.

Motive of the Program

Abel’s Ideas: In 1824, Niels Henrik Abel showed that it’s impossible to find a one-size-fits-all solution for certain math equations (polynomial equations) beyond a certain complexity.
Galois’s Discovery: Evariste Galois, who didn’t know about Abel’s work, suggested looking at patterns (symmetries) in the solutions of these equations instead of trying to solve them directly.
Galois Groups: These are groups that show the patterns in the solutions of these equations and are key to the Langlands Program.
Linking Ideas: The program tries to connect these Galois groups with something called automorphic functions, which would allow using calculus (a branch of math) to explore these equations, connecting harmonic analysis and number theory.

Automorphic Functions: A way to Connect Different Areas of Math

Automorphic Function’s Example: Think of functions that have a repeating pattern, like the way sine functions in trigonometry work.
Special Kind of Symmetry: Automorphic functions have a unique property where they remain the same even after certain transformations, showing a special kind of symmetry.
Role in Langlands Program: The program’s goal is to link these special functions with Galois groups, leading to new ways of understanding and solving math problems.

Significance of the Program

Solving math problems: In 1994, Andrew Wiles and Richard Taylor used ideas from the Langlands Program to solve Fermat’s Last Theorem, a famous and old math problem.
Creating New Functions: This program helps in making new types of automorphic functions, which could help solve other complex math problems, like the Ramanujan conjectures.
Geometric Langlands: This is a branch of the Langlands Program that looks at connections between different fields like algebraic geometry, representation theory, and even physics.
Setting Connection between Math and Physics: Recent studies suggest that this program might help in understanding things in physics, like the study of electromagnetic waves.

10. FSSAI operationalises amended micronutrients limits in premix for fortified rice kernels

Subject : Science and Tech

Section: Health

Context:

The Food Safety and Standards Authority of India (FSSAI) has decided to operationalise draft amendment regulations regarding standards of vitamin and mineral premix used for manufacturing fortified rice kernels (FRKs).

Details:

These amendment regulations define limits for the addition of micronutrients per 100 grams in vitamin and mineral premix used to make FRKs.
- Fortified rice kernels are either coated rice kernels or extruded rice-shaped kernels prepared with a premix of vitamins and kernels.
The amendment regulations will strengthen the national fortification programme.
FSSAI has also released guidelines for the sampling of fortified rice kernels (FRK)fortified rice (FR) and vitamin-mineral premix (VMP) for FRK.
- The prescribed method of sampling is designed to ensure that fair and valid sampling procedures are used when FRK, FR and VMP for FRK are being tested for compliance with a particular commodity standard.

Prescribed limits:

Micronutrients	Prescribed limit
Vitamin B9 (Folic acid)	45-55 mg/100 gms of premix
Vitamin B12	0.45-0.55 mg/100gm of premix
Iron (Ferric pyrophosphate)	17-20 gram/100 gms of premix
Sodium Feredetate	8-10 grams/100 gm of premix

Fortified Rice Programme:

Central government initiative.
It aims to supply fortified rice in all States and Union Territories through a targeted public distribution system by 2024 in a phased manner.

Rice Fortification:

Fortification of rice is done to increase essential micronutrients like iron, zinc, and Vitamin A in the rice.
The Food Safety and Standards Authority of India (FSSAI) defines fortification as “deliberately increasing the content of essential micronutrients in a food so as to improve the nutritional quality of food and to provide public health benefits with minimal risk to health”.
The cooking of fortified rice does not require any special procedure.
After cooking, fortified rice retains the same physical properties and micronutrient levels as it had before cooking.
Fortified rice will be packed in jute bags with the logo (‘+F’) and the line “Fortified with Iron, Folic Acid, and Vitamin B12”.
Various technologies are available to add micronutrients to regular rice, such as coating, dusting, and ‘extrusion’.
The Extrusion technique involves the production of fortified rice kernels (FRKs) from a mixture using an ‘extruder’ machine.
The fortified rice kernels are blended with regular rice to produce fortified rice.

Source of this article: TH Businessline

11. Horseshoe crab decline sparks urgent conservation plea

Subject :Environment

Section: Species in news

About Horseshoe crab:

Horseshoe crabs are marine and brackish water arthropods of the family Limulidae and the only living members of the order Xiphosura.
Despite their name, they are not true crabs or crustaceans: they are chelicerates, most closely related to arachnids such as spiders, ticks, and scorpions.
Tetrodotoxin (a form of neurotoxin) may be present in one horseshoe crab species, Carcinoscorpiusrotundicauda.
They live primarily in and around shallow coastal waters on soft, sandy or muddy bottoms. They are generally found in the intertidal zone at spring high tides.
In recent years, population declines have occurred as a consequence of coastal habitat destruction and overharvesting.
Species of Horseshoe crabs and their conservation status:
- Tri-spine horseshoe crab (Tachypleustridentatus)- Endangered in IUCN Red list
- American horseshoe crab (Limulus polyphemus)- Vulnerable
- Coastal horseshoe crab (Tachypleus gigas) and Mangrove horseshoe crab (Carcinoscorpiusrotundicauda) are not yet included in the IUCN Red List.

Horseshoe crabs in India:

The coast of Odisha is home to two of the three horseshoe crab species found in Asia — the coastal horseshoe crab (Tachypleus gigas) and the mangrove horseshoe crab (Carcinoscorpiusrotundicauda).
Globally recognised as living fossils (as their basic form has remained nearly unchanged over millions of years).
Medicinal properties of Horseshoe crabs.
- These blue-blooded crabs play a vital role in medical sciences and biomedicine.
- The blood of horseshoe crabs can clot in the presence of bacteria, rendering them harmless. This clotting ability has been extensively utilised in testing injectable medicines, vaccines, and sterile medical equipment, including its recent use in COVID-19 vaccines.
- Their outer layer consists of chitin, enhancing wound healing and serving as a crucial component in treating severe wounds like burns.
Conservation status:
- In India, the species is included in Schedule IV of the Wildlife (Protection) Act 1972.
Threats:
- Shoreline alterations, sea level rise that affects their spawning habitats, and destructive fishing practices that lead to the crabs becoming bycatch, threaten the population of the species. Only a few remaining populations might be left in West Bengal and some parts of Andaman and Nicobar.
Conservation measures:
- Scientists and conservationists working on horseshoe crabs have urged the government to develop a robust protection mechanism for the conservation of these living fossils.
- The IUCN Horseshoe Crab Specialist Group (SSG) is pursuing the possibility of designating horseshoe crabs as the first “World Heritage Species” under the UNESCO World Heritage Programme.
- In 2020, the IUCN SSC Horseshoe Crab Specialist Group formally designated June 20 as International Horseshoe Crab Day annually.
- The Beibu Gulf Declaration on Global Horseshoe Crab Conservation was declared in 2019 in Guangxi, China.

Source: Mongabay

12. A renewed focus on emerging technologies

Subject :Science and Tech

Section: Awareness in IT

Context:

Emerging technologies like cyber technology, Artificial Intelligence (AI), unmanned systems, and advanced computing are crucial for a nation’s military.

Use of emerging technologies in the military:

Under the ‘UDAAN’, the Indian Air Force (IAF) is using AI, cyber and virtual reality to address its operational, logistical, and training needs.
Indian Navy is using AI, unmanned systems and advanced computing for indigenisation under project ‘Swavlamban’.
India’s first drone platforms (based on emerging technologies) were inducted in the late 1990s by the Army.
India has launched communication satellites to improve its military communications capabilities.
- GSAT-7, a Navy-specific communication satellite, was launched in 2013, and GSAT-7A for the IAF in 2018.
In 2018, the government established the Defence Cyber Agency and the Defence Space Agency to address threats from new domains.

Defence Cyber Agency (DCyA):

DCyA is a tri-service command of the Indian Armed Forces.
Headquartered in New Delhi.
The agency is tasked with handling cyber security threats.
It draws personnel from all three branches of the Armed Forces.
The head of the DCyA is an officer of two-star rank and reports to the Chief of Defence Staff (CDS) through the Integrated Defence Staff (IDS).
Indian Navy Rear Admiral Mohit Gupta was appointed in May 2019 as the first head of the DCyA.
As of 2021,DCyA was fully operational with Army, Air Force, and Navy establishing their respective Cyber Emergency Response Teams (CERT).

Defence Space Agency (DSA):

It is a tri-service agency of the Indian Armed Forces.
Headquartered in Bengaluru, Karnataka, India.
The agency is tasked with operating the space-warfare and Satellite Intelligence assets of India.
It draws personnel from all three branches of the Armed Forces.
The agency is expected to be converted into a full-sized tri-service military command in the future.
Origin:
- The Naresh Chandra Task Force was set up in July 2011 by National Security Advisor Shivshankar Menon to review the recommendations of the Kargil Review Committee.
- The Task Force recommended the creation of a cyber command, an aerospace command and a special operations command. All three units were proposed to be tri-service commands. The DSA is a downsized implementation of this proposal.

Source of this article: The Hindu

13. The impact of Bangladesh’s garment workers’ strike

Subject : Economy

Section: External sector

Context:

One of Bangladesh’s largest labour forces — the 4.4 million-strong ready-made garment (RMG) sector workers are protesting and demanding a trebling of their legally mandated minimum wages from 8,000 Bangladeshi Taka (BDT), or about $72, to 23,000 taka ($208).

What is fast fashion’s significance to Bangladesh’s economy?

Bangladesh is the world’s second-largest exporter of fast fashion, or RMG, after China, accounting for 85% of the country’s export earnings of $55 billion in 2022.
It has a global market share of almost 8%.
The main markets are the U.S., the U.K., Europe and Canada.
H&M is the top importer. Other big brands include Levi’s and Zara.
The 4,000 odd manufacturing facilities in the RMG sector are largely small and medium enterprises (SMEs), mainly employing rural women, and it has been credited with helping the country’s drastic reduction in poverty from 44.2% in 1991 to 5% in 2022 based on the international poverty line of $2.15 a day (using 2017 Purchasing Power Parity exchange rate).
Rising remittances by a growing emigre population is the other factor contributing to the government’s foreign exchange.

Why are the RMG sector workers protesting now?

Bangladesh follows a system of setting minimum wages for each sector of the economy, which is revised every five years.
But, the minimum wage for fast fashion workers has not been updated since 2018.
Also, in recent years, Bangladesh has witnessed steep inflation due to the COVID-19 pandemic and the volatility in oil prices fuelled by the Russia-Ukraine war.
Bangladesh’s foreign exchange reserves have more than halved from a high of $48 billion in 2021 to less than $20 billion.
Several economists, including the Bangladesh Institute of Labour Studies, peg a minimum monthly living wage at BDT 33,368 ($302), for garment workers in a January 2023 report.
The government imposed import curbs that have also affected the functioning of the RMG sector.

Global efforts:

The Berlin-based coalition of “19 garment brands and IndustriALL Global Union”, called Action, Collaboration, Transformation (ACT) has pledged “supporting a living wage in the RMG sector in Bangladesh through the promotion of the conditions to achieve an industry-wide collective bargaining agreement supported by Brands’ purchasing practices”.

Relationship between the RMG sector and carbon emissions:

According to the UN Environment Programme, the fashion industry is responsible for anywhere between 2-8% of global greenhouse gas emissions, making it “one of the largest contributors to the climate and ecological crisis”.
According to the Green Climate Fund,Bangladesh’s RMG facilities are not operating efficiently because of continuous usage of old and badly maintained machines, coupled with poor energy management.
Bangladesh has the maximum number of U.S. Green Building Council-certified RMG factories globally.

The location of the cotton textile industry is mainly affected by:

raw material,
proximity to the market,
moist weather,
capital, skilled and cheap labour,
Transport, sea-port, export facility and the domestic and international markets.

Major textile hubs:

Globally:
- Major cotton textile industrial regions are: India, China (Shanghai), Pakistan, Bangladesh (Dhaka), Japan (Osaka), Egypt, Brazil, the USA (New England region, North Carolina, South Carolina, Georgia, Alabama, Mississippi, Texas and California), and the U.K. (Manchester, Liverpool and Lancashire).

In India:

Source of this article: The Hindu

14. Free cancer care alone won’t help India fight cancer

Subject : Science and Tech

Section: Health

Context:

By 2040, according to one estimate, 20 lakh people a year will be diagnosed with cancer in India.

Details:

Cancer is already the third leading cause of death in India.
A June 2023 study reported that even among patients with PMJAY or other state-sponsored health insurance coverage, cancer treatment rendered catastrophic health expenses in more than 80% and impoverishment in more than 60% of people.
The financial burden increases by adding to the direct and/or indirect Out-of-pocket expenditure (OOPE).
- Direct medical OOPE includes doctor’s consultation fees, cost of medicines, and medical tests, and direct non-medical OOPE includes costs of transport, accommodation, and food for people travelling to larger cities for treatment. Indirect OOPE accounts for the loss of productive hours and/or income.

Government efforts to reduce the financial burden:

In 2012, the Haryana government made transport for patients with cancer and one caregiver in public buses from their places of residence to their places of treatment free.
In Kerala, patients with cancer are eligible for a 50% concession on public bus tickets.
In 2017, Delhi launched the Arogya Kosh scheme to reduce the burden on public health centres and avoid treatment delays. Here, residents of Delhi making less than Rs 3 lakh a year are eligible to get certain tests, like ultrasound and CT scans, in private health centres for free.
Haryana, Tripura, and Kerala have also floated a ‘cancer pension’ to financially assist patients with advanced-stage cancer: Rs 2,500 per month in Haryana and Rs 1,000 in Tripura and Kerala.

National Cancer Grid (NCG):

The National Cancer Grid (NCG) is an initiative of the Government of India through the Department of Atomic Energy and its grant-in-aid institution, the Tata Memorial Centre, to create a network of cancer centres, research institutes, patient groups and charitable institutions across India with the objective of developing uniform standards of patient care for prevention, diagnosis, and treatment of cancer; providing specialized training and education in oncology and facilitating collaborative basic, translational and clinical research in cancer.

National Cancer Registry Programme (NCRP):

For a database of cancer cases, the National Cancer Registry Programme (NCRP) was initiated in 1982 by ICMR, which gives a picture of the magnitude and patterns of cancer.
There are two types of registries; Population Based Cancer Registry and Hospital Based Cancer Registries, which were started in January 1982.

GOALS & OBJECTIVES OF NCCP

Primary prevention of cancers by health education especially regarding hazards of tobacco consumption and the necessity of genital hygiene for the prevention of cervical cancer.
Secondary prevention i.e. early detection and diagnosis of cancers, for example, cancer of the cervix, breast and oro-pharyngeal cancer by screening methods and patients’ education on self-examination methods.
Strengthening of existing cancer treatment facilities, which are woefully inadequate.
Palliative care in the terminal stage of the cancer.

Other initiatives:

National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS) is being implemented under the National Health Mission (NHM) for up-to-the-district level activities.
Under the ambit of Ayushman Bharat, Pradhan Mantri Jan ArogyaYojana (PM-JAY) is being implemented to reduce the financial burden for poor and vulnerable groups arising out of catastrophic hospital episodes and to provide access to quality health services.
National Pharmaceutical Pricing Authority (NPPA) launched a Pilot on Trade Margin Rationalisation for 42 anti-cancer drugs in February 2020 as a step towards making healthcare more affordable for suffering patients. This led to a reduction in the prices of drugs.

Source: The Hindu

15. WCA rebrands as FutureCoal, bats for sustainable coal usage

Subject :Environment

Section: Climate change

Context:

The World Coal Association (WCA) has rebranded itself as FutureCoal – The Global Alliance for Sustainable Coal.
The change was in response to a call from coal and allied sectors to modernise and unite under a common purpose.

About the World Coal Association (WCO) or FutureCoal:

Established in 1985
It is an international non-profit, non-governmental association based in London, United Kingdom.
It was created to represent the global coal industry.
The association was formerly called the World Coal Institute (WCI) but changed its name in November 2010.
It undertakes lobbying, organises workshops, and provides coal information to decision-makers in international energy and environmental policy and research discussions, as well as supplying information to the general public and educational organisations on the benefits and issues surrounding the use of coal. It also promotes clean coal technologies.
It has participated in a number of United Nations and International Energy Agency (IEA) workshops, boards, and forums, including the UN Commission on Sustainable Development, the UN Framework Convention on Climate Change, the IEA Working Party on Fossil Fuels, and the IEA Coal Industry Advisory Board.
It is also part of the Carbon Sequestration Leadership Forum.
It is co-author of a report on the future of coal in ASEAN nations.

Coal distribution in India:

There are two types of coal mainly found in India:
- Gondwana coal
- Tertiary coal

Distribution of Gondwana coal:

Chhattisgarh: Korba coalfield, Birampur coalfield, Hasdo-Arand coalfield, Chirmiri coalfield, Lakhanpur coalfield, Jhilmili coalfield, Johilla coalfield, Sonhat coalfield, Tatapani-Ramkota coalfields.
Jharkhand: Jayanti, Bokaro, Girdih (Karharbari), Karanpura and Ramgarh coalfields, Auranga, Hutar, Deltenganj, Devgarh, Rajmahal.
Odisha: Talcher, Rampur- Himgir, Ib river coalfield.
Madhya Pradesh:Singrauli (Waidhian), Pench-Kanhan-Tawa, Sohagpur, Umaria.
Andhra Pradesh:Singareni and Kothagudam.
Maharashtra:Kamptee, Wun, Wardha Valley, Ghughus, Ballarpur and Warora.
West Bengal:Raniganj, Bardhaman, Bankura, Purulia and Birbhum.
Uttar Pradesh: Part of Singrauli coalfield spans in Mirzapur district of U.P.

Distribution of Tertiary Coalfield:

Assam:Makum, Nazira, Mikir Hills, Dilli-Jeypore and Lakhuni.
Arunachal Pradesh: Upper Assam Coal belt extends eastwards as Namchick-Namrup coalfield.
Meghalaya:Darrangiri field (Garo hills) and Siju, Cherrapunji, Liotryngew, Maolong and Langrin coalfields (Khasi and Jaintia hills).
J&K and Himachal Pradesh:Kalakot and surrounding regions in Jammu, south of Pirpanjal, Chamba district in Himachal Pradesh.
Tamil Nadu:Neyveli Lignite fields of Cuddalore district.

Source: The Hindu

16. One-day temperatures breach 2°C warming point for first time: Report

Subject : Environment

Section: Climate change

Context:

The world breached 2 degrees Celsius of warming on November 17, 2023, according to preliminary analysis from the European Centre for Medium-Range Weather Forecasts (ECMWF).

Details:

The temperatures were 2.06°C warmer than the pre-industrial era, the average for the 1850-1900 period.
This short-term breach of the 2°C is associated with the climate phenomenon El Nino and long-term human-caused climate forcing.
The 2023 State of Climate Report highlighted that the world has already witnessed 38 days with global average temperatures above 1.5°C by 12 September—more than any other year.
June through August of this year was the warmest period ever recorded.
Evidence of a warming planet:
- Global and North Atlantic sea surface temperatures are at all-time highs, Widespread drought in Amazon and the drying up of Rio Negro, wildfires in Siberia and widespread heatwave events in Europe and North Canada regions.
- The last 12 months have been the warmest in the last 125,000 years, with temperatures reaching 1.32 degrees Celsius above the pre-industrial era.

Source: Down To Earth

17. EV battery recycling can give wings to India’s decarbonisation dreams but faces stiff challenges

Subject : Science and Tech

Section: Msc

Introduction:

India does not have enough mineral reserves. At present, its electric vehicle sector is almost entirely dependent on imported battery cells.
- Most electric vehicles use lithium-ion batteries because they are energy-dense and offer improved vehicle performance.
- India does not have reserves of raw materials like lithium, cobalt or nickel.
India needs to revamp its Battery Waste Management Rules of 2022 for efficient and economic extraction of critical minerals through recycling.
- Recycling retired batteries can help the sector hedge geopolitical risks, and build material security while minimising environmental hazards from the e-waste and staying on the path to Net Zero emissions.

Battery recycling in India:

Exigo Recycling plant in Panipat, Haryana.
Battery Smart- India’s largest network of battery swapping stations for electric two- and three-wheelers.
Lico Materials– A lithium-ion recycle plant in Raigad, Maharashtra.

Government’s vision of electric vehicle growth in India:

India plans to achieve 100 per cent electrification of two- and three-wheelers and 65-70 per cent electrification of buses by 2030.
India is also one of the 130 signatories to the Zero Emissions Vehicle Declaration made at a side event at the UN Climate Conference (COP26) in Glasgow in 2021. Though not legally binding, signatories to the declaration will ensure that only zero-emission cars and vans are sold by 2040.
- The Accelerating to Zero coalition (A2Z) launched at COP27 will host the ZEV declaration.
Niti Aayog in its 2022 report, Advanced Chemistry Cell Battery Reuse and Recycling Market in India, estimates that the cumulative potential of lithium-ion batteries in India during 2022-30 will be around 600 GWh across all segments in the base case. Of this, 128 GWh will be available for recycling by 2030 with 46 per cent (59 GWh) coming from electric vehicles alone.
In June 2023, India joined the Minerals Security Partnership of the Critical Mineral Club, to catalyse investments from foreign governments and the private sector in the critical mineral supply and value chain.

Lithium-ion Battery (Li-ion Battery):

These cells have three essential components: two electrodes (an anode and a cathode) and a medium called an electrolyte (that transports ions between these electrodes, thereby generating current).
Typically, the anode is made from copper foil with graphite on it, while the cathode is made up of aluminium foil coated with lithium metal oxides (lithium along with other minerals such as cobalt, manganese, iron and nickel, depending on the cell chemistry). The electrolyte is a lithium salt solution such as lithium hexafluorophosphate.

Black mass:

In electric vehicles, a battery is retired once its performance degrades to 70-80 per cent of its original capacity.
These batteries can still be reused for non-automotive applications, such as stationary energy storage or grid storage.
In the recycling process, the batteries are deep discharged using a salt solution and then passed through a crusher and a shredder after drying.
The resultant material, called black mass, is a mixture of all the valuable materials contained in a lithium-ion cell.
The black mass is checked for quality and relevant batches go through extraction, which is essentially a chemical process in which first graphite is recovered, followed by lithium, nickel, cobalt and manganese in that order.
These materials can then be used to manufacture anode and cathode and are ready to enter the supply chain again. Cobalt, lithium and nickel retrieved through recycling can be used in domestic industries such as steel and paints.
Most countries are trying to restrain the export of black mass to build their own battery recycling industry.
The International Council on Clean Transportation, a US-based non-profit, estimates that globally, 1.2 million electric vehicle batteries are expected to reach their end of life in 2030, increasing to 50 million in 2050.

Market amiss:

Currently, India does not have cell manufacturing capacity and domestic battery manufacturers import cells and assemble them.

Source: Down To Earth

18. How a NASA experiment will study ‘air glow’ to understand Space weather, why it matters

Subject : Science and Tech

Section: SPACE SECTOR

Context:

National Aeronautics and Space Administration (NASA) is set to launch the Atmospheric Waves Experiment (AWE) to study one of the important drivers of Space weather – the Earth’s weather.

What is Space weather and why is it important?

The term “space weather” refers to the variable conditions on the sun and in space that can influence the performance of the technology we use on Earth. Space weather can produce electromagnetic fields that induce extreme currents in wires, disrupting power lines, and even causing widespread power outages.
During certain days, when the weather over Earth turns rough or extreme, Space weather, too, can suffer extreme events. These have a direct impact on vital installations on Earth, like satellite-based communication, radio communication, and Space-based aircraft orbits or stations – affecting the smooth operations of the navigation and Global Positioning Systems (GPS) and power grids.
Apart from influences from the Sun-bound emissions, Space weather also comes under the impact of terrestrial weather.

What is a gravity wave?

In the atmosphere, there are a wide variety of waves, travelling both horizontally and vertically.
Atmospheric Gravity Waves (AWS) are one such kind of vertical wave. They are mostly generated when there is an extreme weather event or a sudden disturbance leading to a vertical displacement of stable air.
Natural phenomena like thunderstorms, hurricanes, tornadoes, regional orography and others have the potential to send out a variety of periodic waves, including AGWs, in the lower levels of the atmosphere.
When the atmosphere is stable, the temperature difference between the rising air and the atmosphere produces a force that pushes this air to its original position. The air will continuously rise and sink, thus creating a wave-like pattern.
AGW is a wave that moves through a stable layer of the atmosphere, wherein the upward-moving region is the most favourable for the formation of cloud patterns or streaks.
AGWs continue all the way to Space, where they contribute to the Space weather.

Atmospheric Waves Experiment (AWE):

It is a first-of-its-kindNASA experimental attempt aimed at studying the interactions between terrestrial and Space weather.
It is planned under NASA’s Heliophysics Explorers Program.
It will study the links between how waves in the lower layers of the atmosphere impact the upper atmosphere, and thus, Space weather.
It will be mounted on the exterior of the Earth-orbiting International Space Station (ISS). From the vantage point, it will look down at the Earth and record the colourful light bands, commonly known as airglow.
It will measure the airglow at mesopause (about 85 to 87 km above the Earth’s surface), where the atmospheric temperatures dip to minus 100 degrees Celsius.

What will AWE do?

Advanced Mesospheric Temperature Mapper (ATMT), an instrument onboard AWE will scan or map the mesopause. Using the four identical telescopes comprising an imaging radiometer, scientists hope to obtain the brightness of light at specific wavelengths.
This information can then be converted into a temperature map, which could reveal the airglow movement and give clues on their role in the upper atmosphere and Space weather.

Source: Indian Express

19. Storage in Cauvery basin reservoirs has dipped to nearly half their gross capacity

Subject: Geography

Section: Rivers in news

Context:

The water level in the four major reservoirs in the Cauvery basin of the State has dipped to nearly half of their cumulative gross capacity.

Cauvery basin:

The Cauvery basin extends over the states of Tamil Nadu, Karnataka, Kerala and the Union Territory of Puducherry.
It spans nearly 2.7% of the total geographical area of the country.
It is bounded by the Western Ghats on the west, by the Eastern Ghats on the east and south and by the ridges separating it from the Krishna Basin and Pennar Basin on the north.
The three main physiographic divisions of the basin are the Western Ghats, the plateau of Mysore and the Delta. The Western Ghat region is mountainous and covered with thick vegetation.
The major reservoirs in the Cauvery basin are Krishnaraja Sagar, Mettur (Stanley), Hemavathy, Kabini, Harasngi, Lower Bhavani and Grand Anicut.
The Cauvery River is one of the major rivers of the peninsular India.
- It rises at an elevation of 1,341 m at Talakaveri on the Brahmagiri range near Cherangala village of Kodagu district of Karnataka and drains into the Bay of Bengal.
- In size, it is smaller than the Godavari, the Mahanadi and the Krishna.
- Major left bank tributaries: Harangi, the Hemavati, the Shimsha and the Arkavati.
- Major Right bank tributaries: the Lakshmantirtha, the Kabbani, the Suvarnavati, the Bhavani, the Noyil and the Amaravati.

20. Sovereign Gold Bonds (SGBs)

Subject: Economy

Section: External sector

Sovereign Gold Bonds (SGBs) introduced in India in FY16 as an alternative to physical gold investments.

Introduction of SGBs: SGBs were introduced in response to a forex crisis partly caused by high gold imports. The bonds allow investors to hold gold without the need for physical import.
Features of SGBs:
- Denominated in rupees and linked to the domestic gold price.
- Provides an assured return of 2.5% on the principal along with potential capital gains.
- Issued by the sovereign, carrying zero risk of default.
Purpose of SGBs:
- Aimed to reduce the demand for physical gold by offering similar advantages through bonds.
- Expected to be successful for investors seeking gold as an investment.
Performance of SGBs:
- Over an eight-year period, 122 tonnes of gold equivalent bonds were issued.
- SGB subscriptions increased during the pandemic, coinciding with a rise in gold prices.
- However, the volume of bonds issued is only 1.8% of the total gold imports (7,003 tonnes) during the same period.
Challenges and Limited Interest:
- Interest in SGBs has been limited.
- Challenges include the cultural significance of physical gold, anonymity in holding physical gold, and the appeal of gold’s ‘snob’ value.
Comparison with Gold ETFs:
- Gold ETFs have not seen significant growth despite steady growth in assets under management (AUM).
- Financial alternatives, including Gold ETFs and SGBs, have not matched the appeal of physical gold holding.
Government Initiatives:
- The government has attempted to encourage people to move from physical gold to financial instruments.
- Electronic Gold Receipts (EGRs) and a vibrant futures market for gold derivatives on MCX are among the initiatives.
Challenges in Shifting Preferences:
- The progress has not been significant, and households still prefer holding physical gold as a form of saving.
- Financial options like SGBs and EGRs are not widely accepted, especially in cultural practices like weddings.

Sovereign Gold Bonds (SGBs) Scheme

Issuance:
- Issued by the Reserve Bank of India on behalf of the Government of India.
Eligibility:
- SGBs will be restricted for sale to resident individuals, HUFs (Hindu Undivided Family), Trusts, Universities, and Charitable Institutions.
Tenor:
- The tenor of the SGB will be for a period of eight years with an option of premature redemption after the 5th year.
Minimum Size:
- Minimum permissible investment will be one gram of gold.
Maximum Limit:
- The maximum limit of subscription:
  - Individuals: 4 Kg
  - HUF: 4 Kg
  - Trusts and similar entities: 20 Kg per fiscal year (April-March)
Joint Holder:
- In the case of joint holding, the investment limit of 4 Kg will be applied to the first applicant only.
Issue Price:
- The price of SGB will be fixed in Indian Rupees based on the simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA).
Sales Channel:
- SGBs will be sold through Scheduled Commercial banks, Stock Holding Corporation of India Limited, Clearing Corporation of India Limited, designated post offices, National Stock Exchange of India Limited, and Bombay Stock Exchange Limited, either directly or through agents.
Interest Rate:
- Investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value.
Collateral:
- SGBs can be used as collateral for loans.
Tax Treatment:
- The interest on SGBs shall be taxable as per the provisions of the Income Tax Act, 1961. The capital gains tax arising on redemption of SGB to an individual is exempted.
Tradability:
- SGBs shall be eligible for trading.
SLR Eligibility:
- SGBs obtained by banks through the pledge process will be considered as part of their Statutory Liquidity Ratio requirements.

India Bullion and Jewellers Association Ltd. (IBJA):

Established in 1919, IBJA is an association for bullion traders in India.
Considered the apex association for all bullion and jewellery associations in India.
Publishes daily Gold AM and PM Rates, which are benchmark rates for issuing Sovereign and Bonds.
Involved in promoting trade through exhibitions and is setting up its own Domestic Gold Spot exchange, Bullion refinery, and gems & jewellery park.
Assists its members in promoting and regulating bullion trade, resolving disputes, providing a neutral platform for weighing precious metals, and interacting with government departments.

Gold Exchange Traded Funds (ETFs):

Overview:

Gold ETFs are passive investment instruments designed to track the domestic physical gold price. They invest in gold bullion and are units representing physical gold in paper or dematerialized form.
Each gold ETF unit is equivalent to 1 gram of gold and is backed by physical gold of high purity.
These funds combine the flexibility of stock investment with the simplicity of gold investments.

Exchange Traded Fund (ETF):

An ETF is a basket of securities traded on an exchange, similar to a stock.
ETFs reflect the composition of an index (e.g., BSE Sensex) and their trading value is based on the Net Asset Value (NAV) of the underlying stocks.
Unlike mutual funds, ETFs can be bought and sold throughout the trading day.
ETFs can own a diverse range of stocks across various industries or focus on a specific industry or sector.
Bond ETFs include government bonds, corporate bonds, and municipal bonds, offering a cost-efficient and diversified investment portfolio to investors.

21. Futures and Options (F&O) – Meaning, Types, Difference

Subject : Economy

Section: Capital Market

SEBI Chairperson, Madhabi Puri Buch, expressed surprise at the continued participation in F&O trading despite high odds against traders.
SEBI’s study indicated that nine out of 10 individual traders in the equity F&O segment incurred net losses.
Investment Perspective:
- Acknowledges a 90% chance of investors losing money in the F&O segment.
- Advises taking a long-term view and investing with a perspective to create wealth over a sustained period, surpassing inflation rates.

Investor Risk Reduction Access (IRRA) Platform:

The IRRA platform was officially launched at Asia’s oldest stock exchange, BSE, in Mumbai.
Designed to address operational challenges faced by brokers and allow investors to review and manage their investments during technical glitches.
IRRA Platform Functionality:
Invocation Process:
- Trading members facing technical glitches can invoke the IRRA platform.
- Basic checks are conducted, and the platform downloads trades from all trading venues.
- SMS/email notifications are sent to investors for accessing the platform.
Investor Interaction:
- Investors can review the status of their investments, orders, and place orders for squaring off or closing positions.
- IRRA is not available for algo trading and institutional clients.
Safety Net:
- Viewed as a safety net for regular and frequent traders.
- Particularly beneficial for traders for whom broker downtime is material, and open positions expose them to risk.
Risk Reduction Design:
- Emphasized that the platform is designed for risk reduction, not for fresh position taking.
- Capable of handling expected volumes with confidence.

Investor Risk Reduction Access (IRRA) Platform

The Investor Risk Reduction Access (IRRA) Platform is a system designed to address and mitigate risks for investors in the Indian stock market. It was officially launched by Securities and Exchange Board of India (SEBI), at the Bombay Stock Exchange (BSE).

Key Features of IRRA Platform:

Purpose:
- The IRRA platform aims to provide a safety net for investors, particularly those who are regular and frequent traders in the stock market.
Operational Function:
- The platform is invoked by trading members (brokers) in case they face technical glitches or operational issues that impact their ability to service clients across various exchanges.

Futures and Options (F&O) – Meaning, Types, Difference:

Meaning:

Futures and Options (F&O):
- F&O are financial derivatives that derive their value from an underlying asset, such as stocks, indices, commodities, or currencies.
- They are contracts between two parties, where they agree to buy or sell the underlying asset at a predetermined price on a future date.

Types of Derivatives:

Futures Contract:
- An agreement to buy or sell the underlying asset at a future date for a predetermined price.
- Obligatory for both parties to fulfill the contract on the agreed-upon date.
Options Contract:
- Provides the buyer with the right, not the obligation, to buy (call option) or sell (put option) the underlying asset at a predetermined price.

Key Differences:

Obligation:
- Futures Contract:
  - Obligatory for both parties.
  - Buyer and seller must fulfill the contract.
- Options Contract:
  - Buyer has the right but not the obligation to execute the contract.
  - Seller must fulfill the contract if the buyer chooses to execute.
- Risk and Reward:
  - Futures Contract:
    - Unlimited profit potential but also unlimited loss.
    - Both parties are exposed to market fluctuations.
  - Options Contract:
    - Limited risk for the buyer (premium paid) with unlimited profit potential.
    - Limited profit for the seller (premium received) with unlimited risk.
  - Flexibility:
    - Futures Contract:
      - Less flexible as it’s obligatory.
      - Both parties are bound to the terms of the contract.
    - Options Contract:
      - More flexible as the buyer can choose not to execute.
      - Seller must comply if the buyer decides to execute.
    - Market Exposure:
      - Futures Contract:
        Direct exposure to market movements.
        Profits or losses are tied to changes in the underlying asset’s price.
      - Options Contract:
        Limited risk for the buyer as losses are capped at the premium paid.
        Seller faces potential losses beyond the premium received.

Common Usage:

Futures Contract:
- Used for speculation and hedging.
- Common in commodities, indices, and interest rates.
Options Contract:
- Used for hedging, speculation, and income generation.
- Common in stock markets for risk management.

Call Option and Put Option: Basics of Options Trading

Options trading involves two primary types of contracts: Call Options and Put Options.

These contracts provide investors with the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (strike price) on or before a specified expiration date.

Call Option:

Definition:
- A call option gives the holder (buyer) the right to buy the underlying asset at the specified strike price before or on the expiration date.
Key Elements:
- Buyer (Holder): The individual who purchases the call option.
- Seller (Writer): The individual who sells (writes) the call option.
- Strike Price: The pre-determined price at which the buyer can purchase the asset.
- Expiration Date: The date by which the option must be exercised or it becomes invalid.
Scenario 1 – Call Buyer’s Perspective:
- If the price of the underlying asset rises above the strike price, the call buyer can exercise the option, buying the asset at a lower price than its current market value.
Scenario 2 – Call Seller’s Perspective:
- The call seller is obligated to sell the asset at the agreed-upon strike price if the call buyer decides to exercise the option. The seller receives the premium from the call buyer.

Put Option:

Definition:
- A put option gives the holder (buyer) the right to sell the underlying asset at the specified strike price before or on the expiration date.
Key Elements:
- Buyer (Holder): The individual who purchases the put option.
- Seller (Writer): The individual who sells (writes) the put option.
- Strike Price: The pre-determined price at which the buyer can sell the asset.
- Expiration Date: The date by which the option must be exercised or it becomes invalid.
Scenario 1 – Put Buyer’s Perspective:
- If the price of the underlying asset falls below the strike price, the put buyer can exercise the option, selling the asset at a higher price than its current market value.
Scenario 2 – Put Seller’s Perspective:
- The put seller is obligated to buy the asset at the agreed-upon strike price if the put buyer decides to exercise the option. The seller receives the premium from the put buyer.

22. FTA – India and UK

Subject : Economy

Section: External sector

Key Points:

Rules of Origin for Medical Devices: Finalizing rules of origin for the medical devices sector is a significant challenge in the proposed Free Trade Agreement (FTA) between India and the UK.
Importance of the Medical Devices Sector in India:
- India imports about 80% of its medical devices requirements.
- Top exporters of medical devices to India include the US, Germany, China, Singapore, and the Netherlands.
Ongoing Negotiations:
- Talks are in progress between India and the UK to resolve differences related to rules of origin and customs duty concessions.
- Negotiations encompass both goods and services sectors.
Issues in the Medical Devices Sector:
- Challenges are present in the rules of origin, and demands for customs duty concessions exist.
- The medical devices sector holds immense potential in India.
Government Initiatives to Promote Domestic Manufacturing:
- The Indian government has taken steps to promote domestic manufacturing of medical devices.
- Initiatives include the Promotion of Medical Device Parks, National Biopharma Mission, and a Production-linked Incentive scheme for the sector.
Major Categories of Imported Medical Devices:
- Consumables, disposables, electronics and equipment, implants, IVD reagent, and surgical instruments are the six major categories of medical devices mainly imported into India.
Rules of Origin in FTAs:
- Rules of origin prescribe the minimum processing that should occur in the FTA country for a product to be considered originating goods in that country.
- This provision prevents the dumping of goods from a third country into the FTA country without sufficient value addition.

Free Trade Agreement (FTA):

Free Trade Agreement (FTA) is a pact between two or more nations aimed at reducing barriers to imports and exports among them. In an FTA, countries agree to facilitate the exchange of goods and services by minimizing or eliminating government tariffs, quotas, subsidies, or prohibitions.

Features:

Trade Policy Concept: FTA is based on the concept of free trade, which stands in contrast to trade protectionism or economic isolationism.
Coverage:
- Goods and Services: FTAs typically cover trade in goods (agricultural or industrial products) and/or trade in services (banking, construction, trading, etc.).
- Other Areas: FTAs may extend to other areas such as intellectual property rights (IPRs), investment, government procurement, competition policy, etc.
- FTAs are pivotal tools in fostering economic cooperation between nations, enhancing trade opportunities, and contributing to global economic growth.

Rules of Origin:

Rules of origin are criteria used to determine the national source of a product. They are essential as duties and restrictions often depend on the source of imports.
FTA Specific: Each Free Trade Agreement (FTA) has its own set of rules of origin, defining the conditions a product must meet to qualify for preferential treatment under the agreement.

CAROTAR Rules (2020):

Introduced by the Indian government in 2020.
Importers must demonstrate that imported products underwent a value addition of at least 35% in the countries of origin.
Previously, a country-of-origin certificate sufficed for availing FTA benefits.

Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020)

The CAROTAR, 2020 came into effect on September 21, setting guidelines for enforcing the ‘rules of origin’ concerning preferential rates on imports under free trade agreements.

Key Points:

Objective:
- The rules aim to provide guidelines for the enforcement of rules of origin, determining the origin of products eligible for preferential rates under various trade agreements.
Supplementing Existing Procedures:
- CAROTAR, 2020 complements existing certification procedures under different trade agreements like FTAs (Free Trade Agreements), PTAs (Preferential Trade Agreements), CECAs (Comprehensive Economic Cooperation Agreements), and CEPAs (Comprehensive Economic Partnership Agreements).
Notification and Familiarization:
- Notified by the Department of Revenue on August 21, 2020.
- Importers and stakeholders were given a 30-day period to familiarize themselves with the new provisions.
Due Diligence by Importers:
- Importers are now required to conduct due diligence before importing goods to ensure they meet the prescribed originating criteria.
Information Requirements:
- The rules specify a list of minimum information that importers must possess.
- Importers need to enter certain origin-related information in the Bill of Entry, aligning with the Certificate of Origin.
Preventing Low-Quality Products and Dumping:
- Designed to check inbound shipments of low-quality products and prevent the dumping of goods by a third country through an FTA partner country.
- Prevents a country with an FTA from dumping goods from a third country in the Indian market merely by putting a label on them.

The CAROTAR, 2020 plays a crucial role in ensuring the proper application of rules of origin, preventing trade agreement misuse, and maintaining the quality standards of imported goods. It enhances the transparency and effectiveness of the preferential trade system.