Daily Prelims Notes 30 December 2023

December 30, 2023
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

30 December 2023

Table Of Contents

1. ISRO to launch XPoSat and 10 other payloads on January 1

Subject: Science and Tech

Section: Space technology

Context:

The Indian Space Research Organisation will launch the PSLV-C58 X-ray Polarimeter Satellite (XPoSat) mission on January 1, 2024.

About X-ray Polarimeter Satellite (XPoSat) mission:

XPoSat is the first dedicated scientific satellite from ISRO to carry out research in space-based polarisation measurements of X-ray emission from celestial sources.
It carries two payloads, namely POLIX (Polarimeter Instrument in X-rays) and XSPECT (X-ray Spectroscopy and Timing).
POLIX has been developed by Raman Research Institute and XSPECT is by Space Astronomy Group of URSC, Bengaluru.

Source: The Hindu

2. India closing in on lithium deal with Argentina, tapping Australia and Chile too

Subject: Geography

Section: Economic Geography

Context:

The Mines Ministry, through the state-owned Khanij Bidesh India Ltd (KABIL), has entered into a draft exploration and development agreement with Argentinan miner CAMYEN for possible acquisition and development of five-odd lithium blocks.
It has also entered into a non-disclosure agreement with Australia and Chile for lithium exploration.

Details:

Chile and Argentina account for 30–35 per cent of the world’s supplies of lithium.
Chile, which has 11 per cent of the world’s lithium reserves, supplies 26 per cent of the requirements; while Argentina with nearly one-fifth of the global resources supplies about 6 per cent.

Lithium Triangle:

The Lithium Triangle is a region of the Andes that is rich in lithium reserves, encompassed by the borders of Argentina, Bolivia, and Chile.
The lithium in the triangle is concentrated in various salt pans that exist along the Atacama Desert and neighbouring arid areas, the largest areas of three main salt pants that define its vertex (Salar de Uyuni in Bolivia, Salar de Atacama in Chile, and Salar del Hombre Muerto in Argentina).
Salar de Atacama in Chile has the highest concentration of lithium (0.15% by weight) among all the world’s brine sources.

KABIL (KHANIJ BIDESH INDIA LIMITED):

A Joint Venture Company among NALCO, HCL and MECL named Khanij Bidesh India Limited (KABIL) was formed in August 2019.
The target of this company is to identify, acquire, develop, process and make commercial use of strategic minerals in overseas locations for supply in India.
KABIL is focusing on identifying and sourcing battery minerals like Lithium and Cobalt.

For details of lithium mineral and its presence in India

Source: The Hindu

3. Birders’ network finds rare pelagic birds on Karnataka’s coast

Subject: Environment

Section: Species in news

Context:

Some 180 birdwatchers from across India were able to document rare ‘pelagic’ birds throughout 2023 just off the Karnataka coast.

About Pelagic Birds:

These are seabirds that live on open seas and oceans rather than inland or around more restricted waters such as lakes and rivers.
They can be found thousands of miles offshore but can get blown onto land during high winds and storms.
The only other time they come inland is to breed.
The most familiar types of pelagic birds include albatrosses, frigatebirds, fulmars, petrels, shearwaters, and tropicbirds.
Example: Sooty Shearwater, Brown Skua, Brown Booby, Streaked Shearwater and Masked Booby.
Features:
- They feed on planktonic crustaceans and squid and hunt fish far from the land.
- Generally, they have dense, waterproof feathers and layers of fat to keep them warm.
- They have exceptionally long and thin wings that allow them to fly effortlessly for long periods without rest.
- Many pelagic birds have special salt glands. This allows them to drink seawater and discard extra salt accidentally ingested by their oceanic prey.
- Some have webbed or partially webbed feet for swimming, plucking fish from the shallows, or executing precise, plunging dives.
- In general, seabirds live longer than other wild birds; most have an average lifespan of 50 years.
- Almost all seabirds live in colonies, migrate annually, and mate for life.

Source: Down To Earth

4. Insights on India’s Financial Transformation

Subject: Economy

Section: National Income

Transformation from Savers to Investors:
- Uday Kotak observes a shift in India from a nation of savers to investors.
- Interest in financial markets increased post the global financial crisis.
Historical Shift in Saver Behaviour:
- In the early 80s, Indian savers lacked confidence in financial assets, favouring gold and land.
- Over time, savers started allocating savings to bank deposits, UTI, and LIC.
Equity Investment Perception in the 90s:
- Investing in equities was considered speculative in the 90s.
- Companies sought capital from foreign institutional investors (FIIs).
Factors Contributing to Investor Transformation:
- Growth of mutual fund platforms, cash equities, derivatives markets, insurance funds, and global private equity.
- Introduction of AIFs and a lower tax regime for equity.
Recommendations for Sustaining Growth:
- Avoiding bubbles through effective policy, regulation, education, and quality financial instruments.
- Addressing issues like tax arbitrage in debt, double taxation on dividends, and retrospective tax.
Financial Sector’s Role in India’s Aspiration:
- Kotak emphasizes the financial sector as a key engine for delivery in India’s growth.
- Coexistence of saver/borrower and issuer/investor models in the financial sector.
Stock Market Optimism:
- Benchmark indices like Sensex and Nifty reaching record highs.
- Analysts foresee robust economic growth in 2024 driven by domestic consumption, government spending, and private investments.
Influencing Factors in 2024:
- Events such as the 2024 Lok Sabha elections, the first Union Budget post-elections, global geopolitical issues, US elections, and global inflation may impact the domestic stock market.

BSE (Bombay Stock Exchange) and NSE (National Stock Exchange):

BSE (Bombay Stock Exchange): One of the oldest stock exchanges in Asia, based in Mumbai.

BSE Sensex: Key stock market index representing the performance of top companies listed on BSE.

NSE (National Stock Exchange):
- Leading stock exchange in India, headquartered in Mumbai.
- Nifty 50: Benchmark stock market index representing the performance of top companies listed on NSE.

FDI (Foreign Direct Investment) and FII (Foreign Institutional Investment):

FDI (Foreign Direct Investment):
- Investment made by a foreign entity in the ownership of facilities or operations in a country.
- Direct involvement in the business operations, indicating a lasting interest.
FII (Foreign Institutional Investment):
- Investment made by foreign institutions in the financial markets of a country.
- Involves buying financial assets like stocks and bonds without direct control over the invested businesses.

5. Fed Rate Cut and its Impact on the Indian Economy

Subject: Economy

Section: External sector

Fed Rate Cut:
- Refers to the reduction in the federal funds rate, the interest rate at which banks lend to each other overnight.
- Decided by the Federal Reserve (Fed) in the United States.
Impact on Indian Economy:
- Capital Flows: A rate cut may lead to capital outflows from emerging markets like India as investors seek higher returns in the US.
- Exchange Rates: Depreciation pressure on the Indian rupee due to capital outflows.
- Borrowing Costs: Lower interest rates globally can result in reduced borrowing costs for Indian businesses.
- Equity Markets: Positive impact on Indian stock markets due to increased liquidity and lower global interest rates.
Global Economic Conditions:
- A Fed rate cut reflects concerns or measures taken to stimulate the US economy.
- Global economic conditions, trade relations, and overall market sentiment are influenced.
Policy Responses:
- The Reserve Bank of India (RBI) may adjust its monetary policy in response to global rate movements.
- India’s central bank may consider measures to manage inflation, capital flows, and exchange rates.

6. Javier Milei writes to BRICS leaders, rejects invite for Argentina to join the grouping

Subject: IR

Section: Groupings

Context: Argentina rejects membership of BRICS

More about the news:

Argentina’s President, Javier Milei, has formally rejected an invitation to join the BRICS grouping, comprising Brazil, Russia, India, China, and South Africa.
In letters sent to BRICS leaders, Milei stated that Argentina’s membership was “not considered appropriate at this time.“
He had pledged not to join BRICS during his campaign, expressing alignment with the United States and Israel.
Despite taking a more conciliatory tone since taking office, Milei’s letters indicate a reassessment of foreign policy decisions made by the previous administration.

Some facts about BRICS:

BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China, and South Africa.
In 2001, the British Economist Jim O’Neill coined the term BRIC to describe the four emerging economies of Brazil, Russia, India, and China.
The grouping was formalized during the first meeting of BRIC Foreign Ministers’ in
South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS
Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates are set to join the group with effect from January 1, 2024.

7. Criteria for awarding disaster relief must laid down clearly

Subject: Polity

Section: National body

Context:

The recent spat between the Central and Tamil Nadu governments over flood relief after two spells of heavy rainfall in the State has been disheartening for those struggling to rebuild their lives.

More about News:

The central government does not declare any natural disaster a national disaster.
It is only after an assessment by its team that any natural disaster is classified as a disaster of severe nature — as seen in the 2013 floods in Uttarakhand and 2018 floods in Kerala.
In such a case, there is additional financial assistance from the National Disaster Response Fund (NDRF).
The central government should ensure clear guidelines when it comes to relief.

Various Funds for mitigation of Disaster:

Prime Minister’s National Relief Fund (PMNRF):
- The Prime Minister’s National Relief Fund (PMNRF) was set up in January 1948, originally to accept public contributions for the assistance of Partition refugees.
- It is now used to provide immediate relief to the families of those killed in natural calamities and the victims of major accidents and riots and support medical expenses for acid attack victims and others.
- The PMNRF was originally managed by a committee which included the Prime Minister and his deputy, the Finance Minister, the Congress President, a representative of the Tata Trustees and an industry representative.
- However, in 1985, the committee entrusted the entire management of the fund to the Prime Minister, who currently has sole discretion for fund disbursal.
- A joint secretary in the PMO administers the fund on an honorary basis.
- States also have similar Chief Minister’s Relief Funds.
National Disaster Response Fund (NDRF)
- It is a fund managed by the Central Government to meet the expenses for emergency response, relief and rehabilitation due to any threatening disaster situation or disaster.
- It is defined in Section 46 of the Disaster Management Act, 2005.
- It is placed in the “Public Account” of GOI under “reserve funds not bearing interest”.
- NDRF is constituted to supplement the funds of the State Disaster Response Funds (SDRF), in case of a disaster of severe nature, provided adequate funds are not available in SDRF.
Eligibility:
- NDRF guidelines state that natural calamities of cyclones, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack and cold wave and frost considered to be of severe nature by Government of India (GoI) and requiring expenditures by a state government in excess of the balances available in its own SDRF will qualify for immediate relief assistance from NDRF.
- For availing the NDRF funds, states are required to submit a memorandum indicating the sector-wise damage and need of funds. The Centre, on its part, assesses the damage and grants the additional funds to states.
- The financial assistance from NDRF is for providing immediate relief and is not compensation for loss/damage to properties /crops. In other words, NDRF amount can be spent only towards meeting the expenses for emergency response, relief and rehabilitation.
- The National Executive Committee (NEC) of the National Disaster Management Authority takes decisions on the expenses from National Disaster Response Fund.
Sources of Financing NDRF:
- It is financed through the levy of a cess on certain items, chargeable to excise and customs duty, and approved annually through the Finance Bill.
- The requirement for funds beyond what is available under the NDRF is met through general budgetary resources.
State Disaster Response Funds:
- It has been constituted in each State under Section 48 (1) (a) of the Disaster Management Act, 2005.
- The fund is the primary fund available with State Governments for responses to notified disasters.
Funding Pattern:
- The Central Government contributes 75% to the SDRF in general States and 90% in North-East and Himalayan States.
- The annual Central contribution is released in two equal installments as per the recommendation of the Finance Commission.
- As per the guidelines, the funds are released on receipt of Utilisation Certificate of the amount released in the earlier instalment and receipt of a report from the State Government on the activities undertaken from SDRF.
- However, in view of the urgency, these requirements were waived while releasing the funds this time.
- The fund is to be used only for meeting the expenditure for providing immediate relief to the victims of notified calamities like cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack and frost & cold wave.
- Allocation of SDRF funds to the States is based on multiple factors like past expenditure, area, population, and disaster risk index.

8. Indian Navy unveils new epaulettes for admirals

Subject: History

Section: Modern India

Context:

The introduction of new designs for Admirals’ epaulettes and renaming of ranks within the Indian Navy symbolizes India’s devotion to its nautical legacy and a break from colonial legacies.
This declaration came after December 4, Navy Day celebrations in Sindhudurg. It stressed a change toward embracing Bharatiyata and emancipating oneself from the slave mentality, or “Ghulami ki Maansikta,” as the Navy put it.

A Symbolic Change

The redesigned Admirals’ epaulettes mark a symbolic departure from the past, with the octagon taking center stage. Inspired by the naval ensign and drawing from the rajmudra (royal seal) of Chhatrapati Shivaji, the new design aims to encapsulate India’s rich maritime heritage.
The octagon, golden navy button top, and symbols of an Indian sword and telescope crossed, along with stars indicating ranks, contribute to a visual representation of the Navy’s commitment to national pride and heritage.

A Shift in Nomenclature

In addition to the redesigned epaulettes, the Indian Navy is set to undergo a change in nomenclature, aligning ranks with Indian traditions.
The decision to rename ranks from their British counterparts further emphasizes a commitment to assert India’s identity and move away from colonial influences.
This aligns with the broader vision of fostering a sense of pride, encapsulated in the principles of “Virasat Par Garv” and liberation from the mentality of servitude.

Embracing Bharatiyata

The Navy’s adoption of the new designs and nomenclature is framed within the larger context of embracing Bharatiyata – an ethos that reflects a sense of Indian identity and values.
The move is not merely symbolic but reflects a deeper commitment to instill national pride and independence within the armed forces, resonating with the Prime Minister’s vision of a self-reliant and culturally rooted India.