Daily Prelims Notes 29 January 2022

January 29, 2022
Posted by: OptimizeIAS Team
Category: DPN

No Comments

Daily Prelims Notes

29 January 2022

Table Of Contents

1. Zaid Crops

Subject – Agriculture

Context – India to stress zaid crops of pulses and oil seeds

Concept –

Zaid crops are summer season crops. They grow for a short time period between kharif and rabi crops, mainly from March to June.
They require warm dry weather as major growth period and longer day length for flowering.
These crops also mature early.
Zaid crop is significant for farmers as it gives fast cash to the farmers and is also known as gap-filler between two chief crops, Kharif and Rabi.

Examples of Zaid Crops

Watermelon
Muskmelon
Cucumber
Bitter gourd
Fodder
Pumpkin
Sugarcane etc

Major Zaid cultivation areas

Zaid crops are usually cultivated in the irrigated areas of the country viz; Uttar Pradesh, Punjab, Haryana, Gujarat, and Tamil Nadu.

2. Capital Dumping

Subject – Economy

Context – Flipkart, Amazon (India subsidiary), Snapdeal, Ola and Uber (India subsidiary), the poster boys of the Indian startup ecosystem, are all loss making companies.

Concept –

Dumping refers to exporting a good at a lower price than the price charged for the good at home.
Capital Dumping is on similar lines. Capital dumping may include the following:
- When a company operates on negative gross margin sales (losses) in the host country, funded by positive gross margins (profits)in their home country or other abroad countries.
- Also, Capital dumping in the context of the Indian startup ecosystem would include companies operating on negative gross margin sales in the host country, funded by Venture Capital money.
  - Companies falling in the second category may not be necessarily be operating on positive gross margins in the host country or any other country abroad.
- Capital dumping can turn out to be a very serious issue and the reason behind the death of many more startups to come, and it is very important that the Government intervenes and considers formulating an Anti-dumping law which helps the Indian Startup ecosystem thrive even more.
- Many experts reckon that e-commerce as a market should not be unregulated since, unregulated markets can be anti-competitive, on the grounds that it gives a few players undue advantage.

3. Bad Banks

Subject – Economy

Context – ‘Bad Bank’ to start off with 15 stressed assets worth ₹50,000 cr

Concept –

In a bid to clean up their books, banks will transfer 15 stressed assets aggregating about ₹50,000 crore by March-end to the National Asset Reconstruction Company Ltd (NARCL).
NARCL, which has already been set up by banks, will aggregate and consolidate select stressed assets in the financial system for their subsequent resolution. Public sector banks hold a majority stake in the ARC.
Along with NARCL, a service company/operational entity, India Debt Resolution Company Ltd (IDRCL), has also been floated for resolving the stressed assets. Private sector banks hold a majority stake in the DRC.
NARCL will acquire the identified assets by paying the lenders 15 per cent of the acquisition value in cash and 85 per cent via Security Receipts/ SRs. These SRs will be secured by the Government of India guarantee for their face value.
The broad features of the arrangement are that NARCL will acquire and aggregate the identified stressed accounts from banks, while IDRCL, under an exclusive arrangement, will handle the debt resolution process.

To know more about Bad Banks, please refer September 2021 DPN.

To know about Asset Reconstruction Company, please refer July 2021 DPN.

4. World Gold Council (WGC)

Subject – Economy

Context – Gold demand hits new high in Dec quarter

Concept –

To know about WGC, please refer December 2021 DPN.

5. WPI-CPI dynamics

Subject – Economy

Context – For monetary policy, tasked with curbing inflation that is on the high side amidst uncertain growth, these are difficult times indeed

Concept –

Wholesale Price Index (WPI)

Wholesale Price Index (WPI), had earlier been the inflation anchor for monetary policy.
It has a bigger commodity basket and derives its weights from national accounts based on traded value of commodities.
WPI is an exclusive commodity price index, and excludes services.
Since the weights in WPI are based on traded value, it assigns much higher weights to manufactured products relative to their share in GDP as the ratio of value added to output in manufacturing is nearly four times the ratio of value added to output in agriculture.
It captures prices at first point of sale.
From the perspective of producers and their investment decisions, WPI inflation is the real anchor and hence equally important from policy perspective.
Further, since it represents inflation for producers and serves as the first point of changes in prices, it captures impact of international commodity prices.

CPI (Consumer Price Index)

CPI (Consumer Price Index) draws commodity weights from NSSO consumption survey.

WPI and CPI correlation

WPI and CPI inflation hardly have any correlation, though WPI food has a reasonable correlation with CPI food, largely because the commodity composition is nearly aligned.
Low correlation between overall WPI and CPI inflation is largely because half the weights in WPI comprising basic goods, capital goods, and intermediate hardly figure in CPI.
High correlation between WPI and CPI for food and WPI being the sole indicator of price movements of basic, intermediate, and capital goods, it is helpful in deciding structural intervention in trade and fiscal policies.

Inflation trend

WPI inflation has been more volatile than CPI.
Until 2020-21, WPI inflation was lower than CPI across all segments other than food.
Lower producer inflation relative to the price rise for consumers indicates generally increased profitability for producers and increased margins for final retailers.
Another notable factor is that inflation in capital goods has remained moderate and relatively stable during these years even though there has been volatility in inflation of basic goods and intermediates. The capital goods industry has maintained prices adjusting their margins.
The structure of inflation based on both WPI and CPI suggest that monetary policy alone is not sufficient to maintain price stability. While monetary policy should act irrespective of what triggers inflation, supply shocks should be handled through fiscal route.

6. Difference between FDI and FPI

Subject – Economy

Context – FPIs have been selling heavily in the Indian stock markets. FPIs have sold more than $3 billion this month alone in the cash segment till January 28, according to the latest official data

Concept –

7. Formosa Bond

Subject – Economy

Context – SBI’s Formosa Bond issuance reflects India’s acceptability among international investors: Dinesh Khara

Concept –

A Formosa bond is a bond issued in Taiwan but denominated in a currency other than the New Taiwan Dollar.
They fall under the eurobond category of bonds because they are denominated by a currency other than that of the country in which they are issued.
They are issued by the Taiwan branches of publicly traded overseas financial institutions and to be traded must have a credit rating of BBB or higher.
Formosa bonds can be issued by subsidiaries of foreign companies which either already operate in Taiwan, or are set up for the purpose.
Formosa bonds are listed and traded on the Taipei Exchange.
- Formosa bonds also listed on overseas exchanges may be traded over-the-counter between bond dealers.

8. Green Climate Fund

Subject – Environment

Context – Most vulnerable countries unable to access Green Climate Fund for adaptation

Concept –

The Green Climate Fund (GCF) is a fund established within the framework of the UNFCCC as an operating entity of the Financial Mechanism to assist developing countries in adaptation and mitigation practices to counter climate change.
One of the largest vehicles for climate finance connected to the UNFCCC is GCF, which was born out of the Copenhagen Accord of 2009. It offers financing through “a flexible combination of grants, concessional debt, guarantees or equity instruments”.
And part of its mandate is “to invest 50 per cent of its resources to mitigation and 50 per cent to adaptation in grant equivalent”. At least half of its adaptation resources must be invested in the most climate vulnerable countries (small island developing states or SIDS, least developed countries or LDCs, and African States).
This makes 154 countries eligible for funding, of which 84 received $2.5 billion GCF adaptation funding between 2015 and 2019, according to the new study.
- Since 54 per cent of the funds went to countries who are LDC, SIDS and / or African countries, the GCF met its mandate.
The GCF is based in Incheon, South Korea. It is governed by a Board of 24 members and supported by a Secretariat.

Key Features –

To know about Climate Finance, please refer November 2021 DPN.

9. Carbon Neutrality

Subject – Environment

Context – Prime Minister Narendra Modi, on multiple occasions, has reiterated that the union territory of Ladakh would be developed as a climate neutral region.

Concept –

Carbon neutrality, in theory, is the when the sum of all the greenhouse gases put into and take out of the atmosphere balance out to zero.

To know about Net Zero, also referred to as carbon-neutrality, please refer September 2021 DPN.

10. ‘NeoCov’ Virus

Subject – Science and Tech

Context – News of the emergence of a new type of coronavirus, with the potential to kill one of every three infected people, has been circulating on the internet for the last couple of days.

Concept –

A NeoCov virus does indeed exist, and it was indeed found in the bat population in South Africa some time ago. It is supposed to have very close resemblance to the coronavirus that caused the Middle East Respiratory Syndrome (MERS) in 2012.
In their study, the Chinese researchers found that the bat receptors used by the NeoCoV were similar to the one that is used by SARS-CoV2 for infecting human beings.
NeoCov has been found only in bats and never infected a human being. Its potential to kill one in three people has been drawn from the fact that it is a very close relative of MERS coronavirus.
The wider set of coronaviruses that MERS belongs to, called Merbecoviruses, have a high case fatality rate of approximately 35 per cent, the research paper said.
With NeoCov closely related to the Middle Eastern Respiratory Syndrome (MERS) coronaviruses — traditionally more lethal but less transmissible than SARS-CoV-2 — the study has raised concern that this too may lethally proliferate in people.
SARS-CoV-2, for instance, spreads the way it does because it has figured out a way to use the enzyme called human angiotensin converter 2 (hACE2) to infect cells.
The scientists reported that they have, for the first time, shown NeoCov too uses bat ACE2. However, this ACE2 is specific to the sub-species of bat and when the scientists checked if the NeoCov could use hACE2, it turned out to be a “less favourable” mode of entry.
A single molecular barrier, close to where the virus bound to cells, “restricted” the human ACE2 from aiding a NeoCov infection.
However, when a mutation was artificially introduced, it made the NeoCov 15-30 times more efficient at infecting human ACE2. Moreover, the study said, the infection could not be suppressed by antibodies targeting SARSCoV¬2 or MERS-CoV.
Despite similarities, the ACE2 receptors of bats and people were different and the odds of a sudden jump were low.

11. Neglected Tropical Diseases

Subject – Science and Tech

Context – In more ways than one, the impact of the COVID-19 pandemic that has hogged headlines for the past two years, is akin to the experiences of those at risk of being infected by Neglected Tropical Diseases (NTDs).

Concept –

NTDs is an umbrella term that refers to 20 medically diverse, communicable diseases that flourish in impoverished environments, tend to coexist, cause significant morbidity and/or mortality and can be battled using effective methods.
NTDs are known to cause permanent disabilities, impact mental and emotional health and well-being and affect over 1.7 billion people across the world.
For instance, a parasitic NTD called Lymphatic Filariasis, colloquially referred to in Hindi as haathipaon or Elephant Feet, is the second-leading cause of permanent disability in the world.
- It attacks the human lymphatic system and can cause painful swelling of limbs (lymphoedema) and genitalia (hydrocele) among others. In fact, disfigurement of breast and genitalia are common.
Similarly, another parasitic NTD, Visceral Leishmaniasis, commonly known as Kala-Azar or Black Fever, is transmitted by sandflies and is fatal if left untreated.
The Government of India is 100 per cent committed to ending NTDs like Lymphatic Filariasis and Kala-Azar, in line with global elimination and control targets.
Preventive methods like Mass Drug Administration (MDA) rounds are periodically deployed in endemic areas during which anti-filarial medicines are provided free-of-cost to at-risk communities.
Vector-control measures like Indoor Residual Spraying rounds are undertaken in endemic areas to prevent sandfly breeding. The government also supports morbidity management and disability prevention for those affected by lymphoedema and hydrocele.
State and central governments have also introduced wage compensation schemes for those suffering from Kala-Azar and its sequela (a condition which is the consequence of a previous disease or injury) known as Post-Kala Azar Dermal Leishmaniasis.
Transmission Assessment Survey (TAS)is a test that determines if the prevalence of Lymphatic Filariasis in an evaluation area has decreased to a level in which transmission of Lymphatic Filariasis or recurrence is unlikely even after stopping Mass Drug Administration (MDA).

To know more about Neglected tropical diseases (NTDs), please refer May 2021 DPN.

12. ‘Stealth’ version of Omicron

Subject – Science and Tech

Context – In Denmark, ”Stealth” version of Omicron has spread quickly and become the dominant variant

Concept –

Scientists and health officials around the world are keeping their eyes on a descendant of the Omicron variant that has been found in more than 50 countries, including the United States.
This version of the coronavirus, which scientists call BA.2, is widely considered stealthier than the original version of Omicron because particular genetic traits make it somewhat harder to detect.
Danish scientists reported this week that preliminary information suggests it may be one and a half time more contagious then the original variant.
The mutant appears much more common in Asia and Europe.

What’s known about this version of the virus?

2 has lots of mutations. About 20 of them in the spike protein that studs the outside of the virus are shared with the original Omicron. But it also has additional genetic changes not seen in the initial version.
For now, the original Omicron BA.1 and its descendant BA.2 are considered subsets of Omicron. But global health leaders could give it its own Greek letter name if it is deemed a globally significant “variant of concern.”
Looking at all vaccine brands combined, scientists found they were about 70 per cent effective against symptomatic disease from BA.2 two or more weeks after a booster shot.

13. Chief Economic Advisor

Subject – Economy

Context – Govt appoints Dr V AnanthaNageswaran as Chief Economic Advisor

Concept –

To know about Chief Economic Advisor, please refer September 2021 DPN.

To know about Appointment of Chief Economic Advisor, please refer October 2021 DPN.

14. Merger of 5Gi and 5G

Subject – Science and Tech

Context – ‘Telcos, stakeholders agree on 5Gi, 5G merger’

Concept –

Telecom service providers and other stakeholders across the boardagreed on an action plan merge to 5Gi with the global standard on 5G, the Telecommunications Development Society of India (TSDSI) said.
The 5Gi and 3GPP-5G merger is a milestone and will be a key enabler to achieve high-speed, high quality connectivity for all as 5G gets rolled out in India and the rest of the world.
- The 3GPP or the third-generation partnership project is a global initiative that provides standards and specifications on telecommunications technologies.
- 5Gi, an initiative of the Department of Telecommunications (DoT) was planned as an indigenous technology that was to be developed jointly by the Indian Institutes of Technology at Madras and Hyderabad.
The 5G Radio Interface Technology, called 5Gi, is an initiative of the Telecommunications Standards Development Society, India (TSDSI), together with the academia, whose merger plan with the global 5G standards, will now be submitted to the International Telecommunication Union (ITU) and TEC.

What is 5Gi?

5Gi is a locally designed telecommunication network that has been designed by IIT Hyderabad, IIT Madras and the Centre of Excellence in Wireless Technology.
The project is approved by the Department of Telecommunications in India and has been provided with funding as well.
The technology developed by Indian institutions will be an alternative to the global 5G standards and has already got a thumbs up from the International Communication Unit.
The main problem with global 5G technology is that the range of coverage goes down with an increase in frequency. This is where 5Gi steps in, as it provides a higher range at a lower frequency.

5Gi might be more efficient and effective than 5G?

Essentially, 5Gi network technology is capable of working at a lower frequency than 5G by still providing a higher range.
The technology works on a Low Mobility Large Cell method, which transmits a cell-based waveform which results in increased range. the TSDSi or the Telecommunications Standards Development Society of India says that “Enhanced cell coverage enabled by this standard, will be of great value in countries and regions that rely heavily on mobile technologies for connectivity but cannot afford dense deployment of base stations due to lack of deep fibre penetration, poor economics and challenges of geographical terrain.”

15. Technology and Innovation Support Centres (TISCs)

Subject – Science and Tech

Context – DPIIT invites varsities, R&D bodies to set up tech centres

Concept –

Technology and Innovation Support Centers (TISCs), whose establishment and development is supported by the World Intellectual Property Organization (WIPO), are designed to provide innovators in developing countries with access to locally based, high quality services related to technology information.
The aim of TISCs is to help innovators in developing countries to exploit their potential and to create, protect, and manage their intellectual property (IP) rights.
WIPO cooperates with its national and regional partners in over 40 countries to establish and develop TISCs. To date, over 320 TISCs have been established worldwide, responding to over 190,000 enquiries annually.

TISC Network in India

The Department for Promotion of Industry and Internal Trade and World Intellectual Property Organization (WIPO) have signed an agreement to establish Technology and Innovation Support Centres (TISC).
The Cell for IPR Promotion and Management (CIPAM) is designated as the National Focal point for the TISC national network.
As the national focal point, CIPAM will identify potential host institutions, assess their capacities and support them in joining the TISC project.
CIPAM will also act as the main intermediary between WIPO and TISC host institutions and coordinate all the activities of the national TISC network.

Till date, the following 10 TISCs have been established in India:

PCSCT Punjab State Council for Science & Technology, Punjab
Anna University, Chennai
Gujarat Council of Science and Technology, Gujarat
National Research Development Corporation, Andhra Pradesh
Kerala State Council for Science, Technology and Environment, Kerala
Patent Information Centre, Rajasthan State Council for Science, Technology, Rajasthan
Karnataka State Council for Science & Technology, Karnataka
International Crops Research Institute for the Semi-Arid Tropics, Telangana
Central Tool Room and Training Centre, Odisha
Jammu & Kashmir Entrepreneurship Development Institute (JKEDI)
Gujarat Technological University, Gujarat.

World Intellectual Property Organisation (WIPO)

WIPO is one of the oldest specialised agencies of United Nations.
WIPO was created in 1967 “to encourage creative activity, to promote the protection of intellectual property throughout the world”.
WIPO currently administers 26 international treaties.
It is headquartered in Geneva, Switzerland.
Every year World Intellectual Property Day is being celebrated on 26th April.
WIPO currently has 191 member states. India joined WIPO in 1975.
- All member states of the UN are entitled, though not obliged, to become members of the specialized agencies like WIPO.

16. Mullaperiyar Dam

Subject – Geography

Context – A“fresh review” of the safety of 126-year-old Mullaperiyar dam is now due and is required to be undertaken, the Central Water Commission (CWC) and the supervisory committee have told the Supreme Court

Concept –

To know about Mullaperiyar Dam, please refer October 2021 DPN.

17. Protocol on Visits to Religious Shrines 1974

Subject – IR

Context – India is “positive” and “willing to engage” in talks with Pakistan on upgrading the 1974 joint protocol on religious pilgrimages to allow air travel and increase the number of shrines that pilgrims from both countries could visit

Concept –

The Protocol on Visits to Religious Shrines 1974 is a bilateral agreement between India and Pakistan facilitating Indian and Pakistani nationals to visit certain religious shrines in both countries.
As of November 2018, fifteen locations in Pakistan and five in India are covered under this protocol.

List of locations covered by the protocol in India

Ajmer Sharif Dargah, dedicated to sufi saint Moinuddin Chishti in Ajmer, Rajasthan
Nizamuddin Dargah, dedicated to sufi saint NizamuddinAuliya, in Delhi
Amir Khusro, dedicated to Sufi musician Amir Khusro in Delhi
Sirhind Sharif, Mujaddid Alf Sani in Sirhind, Punjab, India
Kalyar Sharif, dedicated to sufi saint Alauddin Ali Ahmed Sabir, near Haridwar

18. Intranasal Vaccine

Subject – Science and Tech

Context – Intranasal booster trials get DCGI nod

Concept –

An intranasal vaccine stimulates a broad immune response – neutralizing IgG, mucosal IgA, and T cell responses.
The nasal route has excellent potential for vaccination due to the organized immune systems of the nasal mucosa.

Advantages

Non-invasive, Needle-free.
Ease of administration – does not require trained health care workers.
Elimination of needle-associated risks (injuries and infections).
High compliance (Ideally suits for children’s and adults).
Scalable manufacturing – able to meet global demand.
Immune responses at the site of infection (in the nasal mucosa) – essential for blocking both infection and transmission of COVID-19.

19. Urban Lizards

Subject – Environment

Context – A team of scientists from IISc research about how urban lizards sleep at night

Concept –

The team was hunting for a species of lizards, Rock Agamas, to study how urbanisation has affected their sleep patterns.
They found that urban lizards “use sleep sites that mirror the structural, thermal and light properties of natural habitats”.
City lizards choose sleep sites that resemble that of their rural counterparts in the type of surface and the amount of light and heat received.
The remarkable flexibility in sleep behaviour displayed by urban lizards is likely to help them cope in a city.
Both rural and urban lizards are dependent on rough, rocky substrates.
Urban sleep sites were nine times more likely to be sheltered and covered as compared to rural sites, and this helped address the light problem in urban areas.
This indicates that the lizards try to mitigate urban stressors by being flexible in their sleep site choices, and end up picking sites that resemble their rural sites.

20. MSMEs owned by SC entrepreneurs

Subject – Economy

Context – 6% of MSMEs owned by SC entrepreneurs

Concept –

Maharashtra tops India’s list in the number of micro, small and medium enterprises (MSME) owned by entrepreneurs from the Scheduled Castes with as many as 96,805 enterprises.
Generally, the proportion of enterprises owned by Scheduled Caste entrepreneurs in the overall national tally of MSMEs is 6%.
Tamil Nadu with 42,997 enterprises and Rajasthan with 38,517 units occupy the second and third slots.
The Udyam system of registration, which came into force on July 1, 2020, is a prerequisite for any MSME (regardless of the social category of ownership) to avail itself of concessions or benefits from the Central and State governments and the last date for migration to Udyam has been extended up to March 31, 2022.
- This stipulation is only in respect of MSMEs, which want to get covered under schemes of the governments including priority sector lending of banks. Otherwise, the enterprises, which had registered themselves under the previous system such as Udyog Aadhar Memorandum (UAM), can carry on their business.
There is no room for duplication under the new system, which has a provision for integration with the GSTN (Goods and Services Tax Network).

Udyam registration portal for MSME

Udyam Registration Portal is developed by Ministry of Micro, Small and Medium Enterprises.

Features:

MSME registration process is fully online, paperless and based on self-declaration. No documents or proof are required to be uploaded for registering an MSME
A Registration number will be given after registration
After completion of the process of registration, an Udyam Registration Certificate will be issued This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
PAN & GST linked details on investment and turnover of enterprises will be taken automatically from the respective Government data bases.

Benefits:

This process will be extremely simple, seamless entrepreneur friendly.
It will set an example in Ease of Doing Business, not only in India but internationally.
It will reduce transaction time and costs. Entrepreneurs and Enterprises can focus on their real work and become globally competitive.