Daily Prelims Notes 28 April 2022

April 28, 2022
Posted by: OptimizeIAS Team
Category: DPN

Daily Prelims Notes

28 April 2022

Table Of Contents

1. SSLV ‘development flights’ likely in 2022

Subject: Science & Tech

Context- The Indian Space Research Organisation (ISRO) is hoping to have all three development flights planned for its ‘baby rocket’ — the Small Satellite Launch Vehicle (SSLV) — in 2022 itself.

Concept-

What is SSLV?

The SSLV is a small-lift launch vehicle being developed by the ISRO with payload capacity to deliver:
- 600 kg to Low Earth Orbit (500 km) or
- 300 kg to Sun-synchronous Orbit (500 km)
It would help launching small satellites, with the capability to support multiple orbital drop-offs.
In future a dedicated launch pad in Sriharikota called Small Satellite Launch Complex (SSLC) will be set up.
A new spaceport, under development, near Kulasekharapatnam in Tamil Nadu will handle SSLV launches when complete.
After entering the operational phase, the vehicle’s production and launch operations will be done by a consortium of Indian firms along with NewSpace India Limited (NSIL).

small satellite launch vehicle

SSLV details:

Dimensions:
- Height: 34 meters
- Diameter: 2 meters
- Mass: 120 tonnes
The SSLV is a three-stage rocket.
All three stages of the SSLV will be solid propulsion stages.

SSLV vs. PSLV:

The SSLV was developed with the aim of launching small satellites commercially at drastically reduced price and higher launch rate as compared to Polar SLV (PSLV).
A PSLV launch involves 600 officials while SSLV launch operations would be managed by a small team of about six people.
The launch readiness period of the SSLV is expected to be less than a week instead of months.
The SSLV can carry satellites weighing up to 500 kg to a low earth orbit while the tried and tested PSLV can launch satellites weighing in the range of 1000 kg.
The entire job will be done in a very short time and the cost will be only around Rs 30 crore for SSLV.

Significance of SSLV

SSLV is perfectly suited for launching multiple microsatellites at a time and supports multiple orbital drop-offs.
The development and manufacture of the SSLV are expected to create greater synergy between the space sector and private Indian industries – a key aim of the space ministry.

2. The mysterious Hepatitis outbreak in children around the world

Subject: Science & Tech

Context- A series of unexplained cases of Hepatitis B in children has taken over the world. Many countries including the US and UK reported mysterious cases of a few children being diagnosed with Hepatitis B.

Concept-

What is Hepatitis B?

Hepatitis B is an infection in the liver which happens because of the Hepatitis B virus or HBV.
Type 41 adenovirus is suspected of causing Hepatitis B in children.
The virus usually spreads through blood, semen or other body fluids.
The virus is most commonly transmitted from mother to child during birth and delivery, as well as through contact with blood or other body fluids.
It is the primary cause of liver cancer.
It can be prevented or protected against through vaccination.
The most common symptoms of Hepatitis B are jaundice, fever, fatigue that lasts for weeks or even months, vomiting, loss of appetite, and pain in joints or belly.
It’s commonly caused by a viral infection, but there are other possible causes of hepatitis. These include autoimmune hepatitis and hepatitis that occurs as a secondary result of medications, drugs, toxins, and alcohol.
- Autoimmune hepatitis is a disease that occurs when your body makes antibodies against your liver tissue.

Hepatitis A

It is an infectious disease of the liver that is caused by the Hepatitis A virus.
It is acute and in most of cases, symptoms could not be recognized in young people.
Symptoms include vomiting, nausea, fever, severe abdominal pain, jaundice, weakness, and these symptoms might last longer till eight weeks.
It is transmitted to others by contaminated food, water, and by being in close contact with the infected person.
Hepatitis A vaccine helps in preventing disease.
Hepatitis A is always an acute, short-term disease.

Hepatitis C

It is an infection that is caused by the Hepatitis C virus in the liver.
This can be transferred from needles that have been infected, at the time of birth (i.e. transmitted from infected mother to child), through body fluids of an infected person, having sex with multiple partners specifically with HIV-infected persons.
It is also rarely found in semen and vaginal fluids.
It does not spread through food or water.
There is no known vaccine for hepatitis C.

Hepatitis D

It is one of the severe liver diseases that are caused by the virus Hepatitis D (HDV).
It spreads from infected blood or wound.
Hepatitis D is a rare form of hepatitis that only occurs in conjunction with hepatitis B infection.
The hepatitis D virus can’t multiply without the presence of hepatitis B.

Hepatitis E

Hepatitis E is a waterborne disease caused by the hepatitis E virus (HEV).
It might be circulated through food, water, and contaminated blood.
Hepatitis E is mainly found in areas with poor sanitation and typically results from ingesting fecal matter that contaminates the water supply. It could be either acute or chronic.

3. Large share of India’s threatened endemic species in Kerala, Tamil Nadu and Karnataka: Study

Subject: Environment

Context- Kerala, Tamil Nadu and Karnataka host a large share of India’s threatened and endemic species of amphibians, birds and mammals, according to a new study.

Concept-

The three states account for 51 per cent of the country’s species threat abatement and restoration (STAR) score, noted the study published in Environmental Research Letters April 25, 2022.
A higher STAR score indicates greater presence of threatened species.

About STAR Score

The species threat abatement and restoration (STAR) score is a measure of the contribution that investments can make to reduce species extinction
It can help national and subnational governments, cities and other entities target their investments and activities to achieve conservation outcomes- International Union for Conservation of Nature (IUCN).
STAR was previously known as the Biodiversity Return on Investment Metric (BRIM).
The STAR shows ex-ante (potential) and ex-post (achieved) impacts of investments at a range of scales and over a range of timeframes.
The STAR shows how interventions deliver reductions in pressure that can result in changes to the Red List Index (RLI), which is used as the biodiversity indicator for the Sustainable Development Goals, the Aichi Targets and the United Nations System for Environmental-Economic Accounting.

4. Archaeology museum in Andhra Pradesh to display 400 artefacts

Subject: Art & Culture

Context- The Archaeology and Museums Department of Andhra Pradesh has built a museum in Eluru, where nearly 400 artefacts dating back to the early historic period (from 6th Century BC to 4th Century BC) to the 19th Century AD.

Concept-

The Union Ministry of Culture granted Rs 75 crore under the ‘Upgradation of Museums Scheme’ for the Rs 5-crore project in Eluru town.
Nearly 400 artefacts have been collected from Kurnool, Rudramkota, Nellore, Guntur, Vijayawada, Kakinada, Rajamahendravaram and Eluru.
The artefacts include tools, sculptures, manuscripts, copper inscriptions, bronze coins, weapons and oil paintings from the 18th and 19th Century AD.
A red-stone mandapa shed found at Kotadibba in Eluru is one of the main attractions in the museum.

Major Schemes for Promotion of Art & Culture By Ministry of Culture:

Development of Museum:
- To set up new Museums and to Strengthening & modernization of the existing museums by Central Government, State Governments, Societies, Autonomous bodies, Public Sector Undertakings, Local Bodies and Trusts registered under the Societies Act at the regional, state and district level.
- Digitization of art objects in the museums across the country for making their images/catalogues available over the website and
- Capacity Building of Museum professionals.
Centenaries and Anniversaries Scheme:
- To commemorate centenary and special anniversaries such as 125th/150th/175th etc. of eminent personalities and events of historical importance to the country.
- The commemoration starts on completion of 100/125/150 etc. years and continues for a period of one year.
Kala Sanskriti Vikas Yojana:
- To promote and disseminate the art & culture of the country by providing financial support to drama, theatre groups, dance groups, music ensembles, folk theatre & music and other genres of performing art activities.
Development of Libraries & Archives:
- National Mission on Libraries (NML) has an objective of establishing a National Virtual Library of India, establishment of Model Libraries, quantitative/ qualitative survey of Libraries and capacity building.
- All National, State and district level libraries are to be developed as model libraries, with emphasis on developing these libraries in economically backward districts.
- Further, district libraries across the states would be provided network connectivity.

5. Why it is so hot almost everywhere in India

Subject: Environment

Context- THE INDIA Meteorological Department (IMD) on Wednesday forecast heatwave conditions over East, Central & Northwest India during the next five days, and issued a yellow alert (“watch, be updated”) for the entire country except Uttarakhand, Tamil Nadu, Andhra Pradesh and parts of the Northeast for Thursday.

Concept-

Severe heat conditions have prevailed over large parts of India almost consistently since the beginning of March, and maximum temperatures in west Rajasthan and Vidarbha in Maharashtra have stayed between 40°C and 45°C throughout the last two months.
March this year was the third hottest since 1901, with the average maximum temperature at 32.65°C against the normal of 31.24°C, the IMD said.
The country has seen four heatwaves including one that is currently ongoing, and 26 heatwave days since the beginning of March.

Why is this happening?

It is essentially due to the fact that the normal periodic light-intensity rainfall, hail, and lightning have remained absent over most areas of the country.
The rainfall deviation from normal for the country as a whole was negative 70.7 per cent in March (8.9 mm instead of the normal 30.4 mm), according to IMD data.
- A total 231 out of 695 districts (33%) received no rain between March 1 and April 27, and in another 298 districts (43%) rain was deficient or ‘large deficient’.
Western Disturbances:
- The western disturbances have not been sufficiently strong this summer,
- Normally, passing western disturbances— eastward propagating windstreams that originate above the Mediterranean Sea — interact with moist winds from southern India to trigger thunderstorms (nor’west- ers).
- The intermittent light rain and thunder puts a check on the heat.

6. Heat Wave

Subject: Environment

Context- Deadly heatwave building across India, Pakistan: Experts

Concept-

A deadly heatwave is building across India and Pakistan, A new an lysis by climate scientists has directly connected the heatwave with climate.
New Delhi could touch 44-45°C, approaching its record April temperature, while some parts of North India could touch 46°C.
Heatwave warnings have been issued, with public health experts pointing out that extreme heat so early in the year is particularly dangerous.

What are Heat Waves?

A heat wave is a period of abnormally high temperatures, more than the normal maximum temperature that occurs during the summer season in the North-Western and South Central parts of India.
It is a condition of air temperature which becomes fatal to the human body when exposed.
The IMD declares a heatwave when the maximum temperature crosses a certain threshold — 40°C in the plains, 37°C along the coast, and 30°C in hilly regions.
Alternatively, a heatwave is declared if the maximum temperature rises by between 5°C and 6.4°C above normal.
A severe heatwave is declared when the maximum temperature rises more than 6.4°C above normal.
A third condition for a heatwave arises when an area records a maximum temperature of more than 45°C and up to 47°C on any given day.

What is the Impact of these Heat Waves?

Crop Damage:
- The concurrence of heat and drought events is causing crop production losses and tree mortality.
- India has already suﬀered the hottest March in 122 years of weather data, and parts of the country are seeing wheat yields drop 10-15 per cent partly due to the unseasonal heat.
Less Food Production and High Prices:
- The risks to health and food production will be made more severe from the sudden food production losses exacerbated by heat-induced labour productivity losses.
- These interacting impacts will increase food prices, reduce household incomes, and lead to malnutrition and climate-related deaths, especially in tropical regions.
Mortality and Morbidity: The Intergovernmental Panel on Climate Change (IPCC) in the Second Part of AR6 Report flagged that heat extremes are causing human deaths and morbidity.
- The increased heat will lead to an increase in diseases like diabetes, circulatory and respiratory conditions, as well as mental health challenges.
Labour Productivity Loss:
- A higher urban population also implies heat-induced labour productivity loss, resulting in economic impacts.
Wildfires and Droughts:
- The Lancet report showed that populations of 134 countries experienced an increase in exposure to wildfires with droughts becoming more widespread than ever before.

7. State of (un)employment in India

Subject : Economy

Section :Unemployment

Context: According to Centre for Monitoring Indian Economy (CMIE) India’s labour force participation rate (LFPR) has fallen to just 40% from an already low 47% in 2016. This suggests not only that more than half of India’s population in the working-age group (15 years and older) is deciding to sit out of the job market, but also that this proportion of people is increasing.

Concept :

Labour force: According to the CMIE, the labour force consists of persons who are of age 15 years or older, and belong to either of the following two categories:

are employed
are unemployed and are willing to work and are actively looking for a job

Labour Force Participation Rate: It is the percentage of people in the labour force (those who are working or seeking or available for work) in the population.

Worker Population Ratio is the percentage of employed people.

Unemployment rate shows the percentage of people unemployed among the labour force.

Unemployed: A person who is unable to get work for even an hour in the last seven days despite seeking employment is considered unemployed.

What is the significance of LFPR in India?

Typically, it is expected that the LFPR will remain largely stable. As such, any analysis of unemployment in an economy can be done just by looking at the UER.
But, in India, the LFPR is not only lower than in the rest of the world but also falling. This, in turn, affects the UER because LFPR is the base (the denominator) on which UER is calculated.
The world over, LFPR is around 60%. In India, it has been sliding over the last 10 years and has shrunk from 47% in 2016 to just 40% as of December 2021.

This shrinkage implies that merely looking at UER will under-report the stress of unemployment in India.

Why is India’s LFPR so low?

The main reason for India’s LFPR being low is the abysmally low level of female LFPR. According to CMIE data, as of December 2021, while the male LFPR was 67.4%, the female LFPR was as low as 9.4%. In other words, less than one in 10 working-age women in India are even demanding work. Even if one sources data from the World Bank, India’s female labour force participation rate is around 25% when the global average is 47%.

Why do so few women demand work?

Working conditions are far from conducive for women to seek work — such as law and order, efficient public transportation, violence against women, societal norms etc discourage women from taking up jobs.
Not formally capturing women’s contribution to the economy since a lot of women in India are exclusively involved within their own homes (caring for their family) of their own volition.
Inadequate job opportunities for women

8. Baloch group behind Karachi bombings

Subject : Geography

Section: Mapping

Context:

On Tuesday, there was a suicide bombing at Karachi University, outside its Confucius Institute, a Chinese culture and education outreach centre supported by the Chinese Ministry of Education. The Baloch Liberation Army (BLA) claimed responsibility for the attack, also claiming that it was carried out by a female suicide bomber.

What is Baloch Liberation Army (BLA)?

The BLA, which announced itself in 2005 with a rocket attack on a paramilitary camp in BalochistanKohlu during a visit by then President Pervez Musharraf, is a nationalist militant group that has been waging an insurgency for Baloch self-determination and a separate homeland for the Baloch people.

Where is Balochistan located?

Balochistan borders Afghanistan and Iran. With gas, oil, copper and gold deposits, it is the most resource-rich of Pakistan’s four provinces. It makes up half of Pakistan’s area, but has only 3.6% of its population.

Much before Pakistan bought into Chinese President Xi Jinping’s BRI initiative and the China Pakistan Economic Corridor (CPEC), Musharraf had handed over Gwadar, a fishing village on the Baloch coastline, to the Chinese for development of a deep-water port that would provide China access from the Karokoram Pass to the Arabian Sea.

9. Hasdeo Forest Area

Subject : Geography

Section: Mapping

Context: Local women in Surajpur district of Chhattisgarh started a tree-hugging campaign on the morning of April 26, 2022, as they were being cut for the mining project in Hasdeo Aranya.

Concept:

The felling of tress in the Surjapur district started after the Chhattisgarh government gave the final clearance to the second phase of the Parsa East Kete Basen coal mines on April 6. Both projects are owned by Rajasthan Rajya Vidyut Utpadan Nigam and operated by the Adani Group.

The Hasdeo forest covering Chhattisgarh’s Korba, Sarguja and Surajpur districts, spans an area of 170,000 hectares. It is a noted migratory corridor and has a significant presence of elephants.

It is also the catchment area of the Hasdeo river, the largest tributary of the Mahanadi. The area was declared as a ‘No-Go Zone’ for mining by the Centre in 2009. Despite this, mining in the region continued as the policy for the ‘No-Go Zone’ was not finalised.

Go No Go Area :

In 2009, the Environment and Coal Ministries had jointly placed the country’s forested areas under two categories – Go and No-Go zones.
‘No-Go’ areas are regions that were classified by the Ministry of Environment and Forests and Climate Change as containing very dense forests and hence closed to coal mining.
The exercise is aimed at prioritising forest areas under the Forest Conservation Act, 1980.
‘No Go’ areas are those having either more than 10 per cent weighted forest cover (WFC) or more than 30 per cent gross forest cover (GFC).

10. Solomon Island signs a security pact with China

Subject : Geography

Section: Mapping

Context: Solomon Island signs a security pact with China

What is in the Solomon Islands-China pact?

According to a leaked draft of the agreement, Chinese warships will be permitted to dock on the islands. Beijing will now also be able to send security forces “to assist in maintaining social order”.

Why Solomon Island matters?

With a population of less than seven lakh, the chain of hundreds of islands is located near Papua New Guinea in the Pacific Ocean — a politically volatile region that has been at the centre of a long-running diplomatic power struggle between the West and China. It was here, in the capital city of Honiara on the island of Guadalcanal, that some of the fiercest battles of World War II were fought between the US and Japanese troops.

Three major groups of islands in the Pacific Ocean are Melanesia, Micronesia and Polynesia.
The indigenous inhabitants of the Pacific Islands are referred to as Pacific Islanders.
The Pacific Island region covers more than 300,000 square miles (800,000 square km) of land—of which New Zealand and the island of New Guinea make up approximately nine-tenths—and millions of square miles of ocean.
Most Pacific islands are coral formations, although all of these rest on volcanic or other cores.

It excludes the following –

the neighbouring island continent of Australia,
the Asia-related Indonesian, Philippine,
Japanese archipelagoes, and the Ryukyu, Bonin, Volcano, and Kuril island arcs that project seaward from Japan
the Aleutian chain or such isolated islands of the Pacific Ocean as the Juan Fernández group off the coast of South America.

Melanesia

The great arc of islands located north and east of Australia and south of the Equator is called Melanesia (from the Greek words melas, “black,” and nēsos, “island”) for the predominantly dark-skinned peoples of New Guinea island, the Bismarck Archipelago, Solomon Islands, Vanuatu (the New Hebrides), New Caledonia, and Fiji.

Micronesia

North of the Equator and east of the Philippines are the islands of Micronesia, which form an arc that ranges from Palau, Guam, and the Northern Mariana Islands in the west eastward through the Federated States of Micronesia (the Caroline Islands), Nauru, and the Marshall Islands to Kiribati.

Polynesia

In the eastern Pacific, largely enclosed within a huge triangle formed by the Hawaiian Islands to the north, New Zealand to the southwest, and Easter Island (Rapa Nui) far to the east, are the many (“poly”) islands of Polynesia.

11. Birth- death reporting to be automated

Subject: Polity

Section: Msc

Context: Centre plans revamp of the Civil Registration System that is linked to National Population Register

Background:

Union government is planning to revamp the Civil Registration System (CRS) to enable the registration of birth and death in real-time with minimum human intervention and independent of location.
Government has decided to introduce transformational changes in the Civil Registration System of the country through an IT [information technology]-enabled backbone leading to registration of birth and death.
The changes would be sustainable, scalable and independent of the location.
The RGI that functions under the Home Ministry has proposed amendments to the Registration of Births and Deaths Act, 1969 that will enable it to “maintain the database of registered birth and deaths at the national level”.
- The registration of birth and death is mandatory under the Act and the Chief Registrar is mandated to publish a statistical report on the registered births and deaths during the year.
- RGI is empowered under Section 3(3) of the 1969 Act to take steps to coordinate and unify the activities of the Chief Registrars of births and deaths of all States.
According to the proposed amendments, the database may be used to update the population register, electoral register, Aadhaar, ration card, passport and driving licence databases.

Civil Registration System

https://optimizeias.com/civil-registration-system/

12. Jail for false compensation claims of COVID deaths

Subject : Polity

Section : Laws

Context: Centre has issued a public notice stating that compensation for Covid-related deaths

Concept:

Centre has issued a public notice stating that compensation for Covid-related deaths, which took place after March 24 should be filed within 90 days, and within 60 days in the case of fatalities prior to the mentioned deadline.
Six lakh persons have claimed Rs 50,000 each for deaths due to Covid
National Disaster Management Authority (NDMA) has issued the public notice, inviting people to apply and get monetary help from the government, but at the same time warned of legal action against false claims.
The penalty includes two-year jail term, along with fine, according to section 52 of the Disaster Management Act of 2005.
Grievance redressal committees have been authorised to look and approve claims, even though late, if they are genuine.

13. Soybean processors oppose import of GM soybean meal

Subject : Science

Section : Biotechnology

Context: Soybean Processors Association of India (SOPA) on Wednesday urged the Centre government not to allow the import of genetically modified (GM) soyabean meal

Need for import of GM soybean meal:

Rising Demands: The import of soymeal is to meet the current feed shortage in the country. There is a rising demand for a major ingredient of poultry feed.
Poor harvest: The poor harvest of soybean led to shortages in soy feed.
High Prices: Poultry farmers have been asking for imports as the domestic price of soymeal has skyrocketed from Rs 40 per kg to Rs 110 per kg.
Pressure from Industry: The poultry industry has been lobbying for the import of soymeal to tide over domestic shortages and tame prices.

Concerns

Lack of Regulation: There are concerns over the grey area of regulation regarding genetically modified ingredients, given that most imported meals come from GM beans.
Entering Food Chain: Environmental activists have raised concerns about the permission given for something derived from a genetically modified plant to enter the human food chain.
Health at Stack: The public is being subjected to the hazards of this genetically engineered feed which may lead to adverse health impacts.

Import Policy

The import of genetically modified organisms and living modified organisms is restricted and governed by the Environment Protection Act 1985.
GM import proposals are examined by the Genetic Engineering Appraisal Committee (GEAC), a statutory body under the Environment Ministry for making a recommendation to either accept or reject the proposal.
- The Committee is chaired by the Special Secretary/Additional Secretary of the Ministry of Environment, Forests and Climate Change, GOI. A representative of the Department of Biotechnology is a co-chair.
However, soya de-oiled cake or meals do not fall under these categories. It falls under the non-living organism category.
Hence, import of soya de-oiled cake of meal will not be subjected to the Schedule of 1 of GEAC import policy approval as it is a non-living organism.

About Soy meal

Soy meal is left over after oil is extracted from the bean.
It is the main protein ingredient in the feed, especially for broilers (any chicken that is bred and raised specifically for meat production).
It constitutes 25% of poultry feed and maize constitutes 60%.
Roundup Ready Soybeans (RR soybeans) are genetically engineered soybeans that have had their DNA altered to allow them to withstand the herbicide glyphosate (the active ingredient in Monsanto’s herbicide Roundup).
- They are also known as “glyphosate tolerant” soybeans.

14. Global Land Outlook

Subject : Environment

Section :Report and Indices

Context: The second edition of the GLO has been released .

Concept :

According to a new report from the United Nations Convention to Combat Desertification (UNCCD) released April 27, 2022, Some 16 million square kilometres of land — the size of South America — will be degraded if current trends continue.

The Global Land Outlook (GLO), the UNCCD’s flagship publication, showcases new and transformative policies and provides guidance for planning land management at global and national level. It is part of a broader effort to facilitate discussion on land use policy and practice by illustrating the fundamental importance of good land management.

The various editions of the publication highlight the central importance of land quality to human well-being and make the case that the restoration and protection of our land is vital for a healthy, prosperous future.

The GLO and its associated products – such as regional reports and working papers – focus on:

land degradation and land use trends
future challenges and opportunities to restore and protect our land

The first edition of the Global Land Outlook was launched in September 2017 at COP13 in Ordos, China.

The second edition of the GLO has been released.

Highlights of report:

The land degradation will induce severe climate-induced disturbances resulting in food supply disruptions, forced migrations and even increased species extinction.
The report has predicted an additional 69 gigatonnes of carbon emission from 2015 to 2050 due to land use change and soil degradation and a slowing in growth of agricultural yields.
However, if land restoration is done on a massive scale across a potential five billion hectares with various measures, crop yields will increase by 5-10 per cent in most developing countries, the report added.
Carbon stocks will also rise by a net 17 gigatonnes between 2015 and 2050 due to gains in soil carbon and reduced emissions, it said.
The measures enumerated are conservation agriculture (low- or no-till farming), agroforestry and silvo-pasture, improved grazing management and grassland rehabilitation, forest plantations.
Up to 40 per cent of the planet’s land is degraded, directly affecting half of humanity and threatening roughly half of global gross domestic product ($44 trillion).
The economic returns of restoring land and reducing degradation, greenhouse gas emissions and biodiversity loss could be as high as $125-140 trillion every year — up to 50 per cent more than the $93 trillion global GDP in 2021, according to the report.
It raised an important point that globally, at least $300 billion will be required annually to achieve significant results in restoring land by 2030. This is far less than the amount of subsidies currently provided to farmers in developed countries.

15. Rupee Depreciation

Subject :Economy

Section :External Sector

Context:

After the 1991 crisis, which led to the devaluation of the rupee, there has been no crisis originating in India that has impacted the country’s external sector to an extent that would lead to rupee weakness. Yet the rupee has depreciated 492 per cent since — from ₹13/$ in 1991 to ₹76.98/$ in 2022.

Causes:

A chronic balance of trade deficit.-
Impact of external financial crisis-overseas: the Asian crisis (1997), the Russian debt default and the LTC meltdown (1998), Y2K (2000), the 9/11 attack (2001), the GFC (2008), European crisis (2011), Taper Tantrum (2013), Covid-19 (2020) and the Russia-Ukraine war (2022)- Led large scale uncertainty in developing countries and capital outflows. (Capital outflows leads to the depreciation of currency)
Policy of depreciation to expand growth-RBI has actively prevented the rupee strengthen on several occasions as it increases export (price of export falls in international market) and reduces imports.

Impact:

Imported inflation- imports become expensive due to depreciation
Rise in rate of interest– to arrest capital outflows.
Exchange rate fluctuations-hampers trade in general

Alternatives:

The RBI, as the forex market regulator, should actively work for the welfare of importers and exporters-

Make it mandatory for all banks to route all their customer trades through the FX Retail platform in order to increase volumes and promote usage.
Allow corporates to transact forex with any bank of choice, and not be mandatorily tied to the bank through which the underlying trade transaction is routed.
Allow delivery against exchange traded currency futures.

Concept:

How does a trade deficit cause currency depreciation?

Under flexible (or floating) exchange rates, the disequilibrium in the balance of payments is automatically solved by the forces of demand and supply for foreign exchange.

A deficit (or surplus) in the balance of trade/payments is automatically solved by a depreciation (or appreciation) of a country’s currency.

Example– D is the India demand curve of foreign exchange representing its demand for British imports, and S is the India supply curve of foreign exchange representing its exports to Britain. At P the demand and supply of the India foreign exchange is in equilibrium where the rate of exchange between Indian rupee and British pound is OE and the quantity of exchange is OQ.

Suppose the deficit develops in the balance of payments of India in relation to Britain. This is shown by a shift in the demand curve from D to D1 and the incipient deficit equals PP2. This means an increase in India’s demand for British imports which leads to an increase in the demand for the pound. This implies depreciation of the Indian rupee and appreciation of the British pound. As a result, import prices of British goods rose in India. and the prices of Indian exports fall. Thus, BOP deficit correction led to depreciation of the Indian rupee.

FX-Retail:

Reserve Bank of India (RBI) through Clearing Corporation of India Ltd (CCIL) has rolled out an electronic trading platform ‘FX-Retail’. This enables Bank customers to buy and sell foreign exchange* across all tenors up to 13 months in USD/INR currency pair.

FX-Retail platform provides for an order driven dealing in the USD/INR currency pair for the Customers of banks. The Customers can access the platform through the Internet to place buy/sell orders in the USD/INR currency pair as per their requirement. The customers can book contracts in CASH (same day currency settlement), TOM (Next day currency settlement), SPOT (Trade +2 days currency settlement) and FORWARD (beyond SPOT currency settlement) instruments upto a period of 13 months including broken dates and Option period (not exceeding a period of 30 days).

16. Office of the Chief Labour Commissioner

Subject :Economy

Section :Unemployment

Context:

The Office of the Chief Labour Commissioner noted that the non-compete clause in the contract of Infosys employees-has been alleged to be unethical and illegal by the complainant.It added that a joint discussion will be held on the issue on Thursday.

Concept:

Non-compete clause in the contract of Infosys employees-after resigning, an Infosys employee cannot work, for a period of six months, with one of the named rival companies on a client he or she would have serviced in the preceding 12 months before quitting.

Non-compete clause in India:

Non-compete clauses are enforceable only during the term of employment and not thereafter.

Section 27 of the Indian Contract Act 1872 which declares as void any agreement that restrains a person from exercising a lawful trade or business. While there are exceptions to this rule for restraints that are ‘reasonable’, courts have consistently refused to enforce non-compete clauses beyond the term of employment.

The Office of the Chief Labour Commissioner:

The organization of the Chief Labour Commissioner(Central) also known as Central Industrial Relations Machinery is an apex organization in the country responsible for maintaining harmonious industrial relations mainly in the sphere of central Government.

It was set up on the recommendation of the Royal Commission on Labour in India, the organization was set up in April, 1945 by combining the former organizations of the conciliation Officer (Railways), Supervisor of Railway Labour and the Labour Welfare Advisor. It was then charged mainly with duties of prevention and settlement of industrial disputes, enforcement of labour laws and to promote welfare of workers in the industrial establishments falling within the sphere of the Central Government.

History

It started with a small complement of staff comprising Chief Labour Commissioner(C) at New Delhi, 3 Regional Labour Commissioners at Bombay, Kolkata & Lahore, 8 Conciliation Officers and 18 Labour Inspectors.
The Conciliation Officers and Labour Inspector were re-designated as Assistant Labour Commissioner and Labour Enforcement Officer .
The organization was further augmented gradually consequent upon increase in the number of labour legislations in the post-independence period, increased industrial activity in the country and growing responsibilities of the organization by establishing regional offices at Kanpur, Dhanbad, Madras, Asansol, Ajmer, Hyderabad, Bhubaneshawar and an office of Dy.CLC(C) at Dhanbad.
In order to secure better conciliation, preventive mediation and more effective enforcement of labour laws, a scheme to further strengthen the Central Industrial Relations Machinery was approved under the sixth five-year plan. As a result, three more regions with headquarters at Guwahati, Chandigarh and Bangalore were created during 1981-82.
Three more new regions with Headquarters at Ahmedabad, New Delhi and Cochin were created under the seventh five-year plan in 1987-88.
Two new regions Dehradun and Raipur with headquarters at Uttranchal and Chattisgarh respectively were created in the year 2005 by reallocating officers and staff within the existing strength of the officers and staff.

17. The DIR-V programme

Subject: Governance

Section: Schemes

Context: Minister of State for Electronics and Information Technology Rajeev Chandrasekhar has launched Digital India RISC-V Microprocessor (DIR-V) Program.

Objective of the program:

Its overall aim is to enable the creation of Microprocessors for the future in India, for the world and achieve industry-grade silicon and Design wins by December 2023.
DIR-V program will see partnerships between Start-ups, Academia and Multinationals, to make India not only a RISC-V Talent Hub for the World but also supplier of RISC-V System on Chips for Servers, Mobile devices, Automotive and Microcontrollers across the globe.
Strategic Roadmap for India’s Semiconductor Design and Innovation to catalyse the semiconductor ecosystem.
The government initiative is pegged to be another concrete step towards realizing the ambition of self-reliance towards “Atmanirbhar Bharat”.
The DIR-V programme will consolidate and leverage the ongoing efforts in the country with an integrated multi-institutional and multi-location team, finalise the formal architecture and target performance of chipsets, support original equipment makers and design wins in India and abroad. The DIR-V initiative is part of the government’s₹76,000-crore effort to build a semiconductor ecosystem in the country.

Vega, Shakti

IIT-Madras and the Centre for Development of Advance Computing (CDAC) have developed two micro processors named Shakti (32bit) and Vega (64 bit), respectively, using Open Source Architecture under the Microprocessor Development Programme of MeitY.