Daily Prelims Notes 4 November 2023

November 4, 2023
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

4 November 2023

Table Of Contents

1. Status of Household Deposits in India

Subject :Economy

Section: Monetary Policy

Household Deposits:
- Household deposits with Scheduled Commercial Banks (SCBs) increased at a CAGR of 9.8% from ₹81 trillion in March 2019 to ₹118 trillion in March 2023, with a significant jump in March 2021.
- YoY changes fell sharply after the March 2021 peak, indicating a declining trend, especially post-pandemic.
- Factors such as low per capita income growth, unremunerative bank deposit rates, and increased investment in the stock market and mutual funds impacted deposit growth.
- Precautionary savings shifted from banks to insurers due to the growing demand for life and health insurance policies.
Bank Loans:
- Household borrowings from SCBs increased steadily from ₹45 trillion in March 2019 to ₹76 trillion in March 2023, with a CAGR of 13.7%.
- Personal loans (PLs) dominated the non-food credit (NFC) portfolio of banks, with a CAGR of 15.4% over the five-year period.
- Housing, credit card outstanding, education loans, and vehicle loans constituted nearly 67% of the total PLs in 2022-23.
- Increased speculation motives led to premature withdrawals of term deposits for stock market investments and property price speculation, creating liquidity and credit default risks.
Policy Implications:
- Banks should adopt a cautious approach towards loan deployment, especially in unsecured loans and PLs, to reduce society’s indebtedness.
- Emphasizing the importance of positive real interest rates, measures to reduce liquidity and asset-liability management risks are crucial.
- Mobilizing term deposits from households can improve overall gross domestic savings and reduce reliance on bulk deposits, ensuring a stable financial ecosystem.

About Nominal and real interest rates

Nominal and real interest rates are essential concepts in the field of finance and economics, representing different aspects of the cost of borrowing and lending.

Nominal Interest Rate:
- The nominal interest rate refers to the stated interest rate on a financial product or investment. It is the rate at which money invested grows over time, not adjusted for inflation.
- It represents the absolute return on an investment or the cost of borrowing without considering the impact of inflation.
- Nominal interest rates are the rates typically quoted for loans, savings accounts, bonds, or other financial products.
Real Interest Rate:
- The real interest rate, on the other hand, is the nominal interest rate adjusted for inflation, representing the true increase in purchasing power or the true cost of borrowing.
- It reflects the rate of return after accounting for the effects of inflation, providing a more accurate measure of the actual growth in wealth or the actual cost of borrowing.
- Real interest rates give a clearer picture of the profitability of an investment or the actual cost of a loan in terms of the purchasing power of the currency.

The relationship between the nominal and real interest rates can be expressed using the following formula:

Real Interest Rate = Nominal Interest Rate – Inflation Rate

When the inflation rate is zero, the nominal interest rate and the real interest rate are the same. However, when there is inflation, the real interest rate can differ significantly from the nominal rate.

It is important to consider both nominal and real interest rates when evaluating investment opportunities or making financial decisions to ensure a comprehensive understanding of the true costs and returns involved.

Why there is a shift in household financial savings away from traditional deposits?

The shift in household financial savings away from traditional deposits can be attributed to various factors, including changing economic conditions, evolving consumer preferences, and advancements in the financial services sector.

Some key reasons for this shift are:

Low Real Interest Rates: With interest rates on deposits often failing to keep pace with inflation, the real returns on traditional savings have diminished. This has prompted individuals to explore alternative investment options that offer the potential for higher returns.
Increasing Awareness and Financial Literacy: Improved financial awareness has encouraged individuals to diversify their savings and investment portfolios, seeking opportunities beyond conventional deposit accounts. People are now more open to exploring various asset classes to optimize their financial growth.
Changing Economic Environment: With the liberalization of financial markets, individuals have gained access to a broader range of investment options, including equities, mutual funds, bonds, and other financial instruments. This has contributed to the diversification of savings away from traditional bank deposits.
Shift in Investment Preferences: Many investors are now inclined towards equity markets and mutual funds, seeking potentially higher returns. The growth of mutual fund investments, particularly through systematic investment plans (SIPs), highlights this evolving investment preference among households.

Household Savings:

Refers to money left after taxes and consumption expenditures.
Components: Includes financial assets (currency, deposits, equity, etc.), physical assets, and gold and silver ornaments.
Significance: Vital for long-term economic growth, acts as a primary source of domestic loanable funds.

Factors Influencing Household Savings:

Income: High-income households tend to save more, while low-income households prioritize consumption.
Interest Rate: High real interest rates make savings more attractive; inflation impacts savings decisions.
Future Income Expectation: Economic optimism can lead to increased consumption rather than saving.
Wealth: Increasing asset values may reduce the incentive for households to save more.
Tax: Higher personal taxes reduce disposable income, affecting consumption and savings decisions.

Importance of Household Savings:

Supply Source: Provides domestic funds for capital investment, increasing productive capacity.
Profit: Savings generate returns such as interest income, dividends, and capital gains.
Production Boost: Investments from savings contribute to increased production and growth.
Financial Market: Savings flow into the financial market, supporting businesses and increasing productive capacity.
Wealth Accumulation: Savings allow households to accumulate wealth, impacting consumption and stimulating real GDP growth.
Buffer: Savings allow households to prepare for future consumption, contributing to overall well-being.

Status of Household Savings:

Decline: Household financial savings dropped to 5.1% of GDP in FY23, a 40-year low.
Liabilities: Financial liabilities increased by 5.8% of GDP in FY23, indicating heightened reliance on loans for consumption and real estate purchases.
Debt: Household debt remained significantly high at 37.6% of GDP in FY23.

Implications of Fall in Household Savings:

Capital Investment: Reduced savings could impede the Indian government’s financing of capital investments.
Foreign Capital Dependence: Decreased household savings might lead to increased dependence on foreign capital.
Investment Cycle Impact: Increased borrowing affects the investment cycle, with private consumption contributing to a significant portion of the GDP.
Debt Increase: Rising borrowing leads to tied-up future income, resulting in reduced investments.
Rising Inequality: The increase in financial liabilities alongside falling asset levels could suggest a rise in income inequality.

Chakravarty Committee (1985)

The Chakravarty Committee, formed in 1985, was constituted by the Reserve Bank of India (RBI) to examine and make recommendations on the existing structure of interest rates in India and lay down the seeds of Liberalisation in India. The committee was tasked with evaluating various aspects of interest rates, including their determination, structure, and implications for the Indian economy. The committee’s recommendations were aimed at promoting the efficient functioning of financial markets and ensuring the stability of the banking system.

Some key recommendations of the Chakravarty Committee are as follows:

Differential Interest Rates: The committee suggested the implementation of a system of differential interest rates to better align the rates with the various sectors of the economy. This approach aimed to encourage specific sectors by offering preferential rates, thereby stimulating growth and development.
Real Interest Rates: The committee emphasized the importance of maintaining positive real interest rates to promote savings and discourage inflationary pressures. It recommended that the real rate of interest offered on bank deposits should be kept at a positive level to ensure that depositors receive returns that exceed the inflation rate, encouraging savings and financial stability.
Regulatory Measures: The committee recommended regulatory measures to ensure that interest rates are determined by market forces while also preventing the exploitation of consumers by financial institutions. It suggested the implementation of regulatory mechanisms to monitor and control interest rates to safeguard the interests of both depositors and borrowers.
Interest Rate Structure: The committee proposed reforms in the interest rate structure to facilitate a more efficient allocation of financial resources. It recommended a review of the existing interest rate system, including the introduction of market-based interest rates and the removal of administrative controls, to foster a more competitive and dynamic financial market.

The recommendations emphasized the significance of offering deposit rates that exceed the inflation rate, ensuring that depositors receive positive real returns on their savings. By maintaining positive real interest rates, the committee aimed to encourage individuals to continue depositing their funds in bank accounts, fostering a stable savings environment and contributing to the overall economic growth of the country.

2. GST Amnesty scheme

Subject :Economy

Section: Fiscal Policy

GST Amnesty scheme for filing appeals on GST demand notices has several key points, as follows:

Extended Filing Time for Appeals:
- Taxpayers are now granted an extended deadline until January 31, 2024, to file appeals against demand orders related to the GST.
- The extension comes in response to the outcome of the 52nd Goods and Services Tax Council meeting.
Pre-Deposit Requirements:
- Taxpayers are required to pay a pre-deposit amount of 12.5% of the tax under dispute to avail the benefits of the scheme.
- At least 20% of the tax under dispute (equivalent to 2.5% of the tax amount) must be debited from the electronic cash ledger, which might impact the working capital positions of businesses.
Coverage and Conditions:
- The scheme covers cases where the appeal was not filed within the stipulated time frame under Section 107 of the CGST Act, 2017, for demand orders passed on or before March 31, 2023.
- Appeals can be filed in instances involving tax liability along with interest and penalty, but not in cases related solely to interest, fines, and penalties.
Scope of Sections 73 and 74:
- Sections 73 and 74 apply to situations where the tax department identifies discrepancies such as tax shortfalls, non-payment, wrongful refund of input tax credit, or alleged misstatement or suppression of facts.
Exclusions from the Amnesty Scheme:
- The amnesty scheme does not cover assessment orders issued under Sections 62, 63, and 64, which primarily affect non-registered entities or non-filers of returns.

The introduction of this scheme is expected to provide relief to taxpayers facing challenges related to the timely filing of appeals and promote smoother resolution of disputes within the GST framework.

GST Amnesty Scheme 2023:

Amnesty Plan for Tax Appeals:

Taxpayers can contest demand orders issued by tax inspectors until January 31, 2024.
The deadline for filing appeals has been extended to provide taxpayers with more time to respond to assessment orders.

Increased Pre-Deposit:

To avail of the extended appeal period, taxpayers are required to make an increased pre-deposit of 12.5%, up from the previous 10% of the tax demand.
A portion of the pre-deposit, at least 20% or 2.5% of the tax under dispute, must be debited from the Electronic Cash Ledger.

Clarification on Property Attachments:

The validity of property attachments by tax authorities is now limited to one year, after which the attached property must be released.
This amendment ensures that temporary seizures of assets do not unduly affect businesses’ operations.

Facilitating Taxpayers:

The GST Council’s decisions are aimed at making the GST system more taxpayer-friendly and providing relief to those facing challenges related to GST matters.
The extended deadline incentivizes adherence to tax regulations and encourages the expeditious resolution of disputes.

Efficiency and Transparency:

The changes introduced by the GST Council contribute to enhancing transparency and fairness in the GST system.
The amendments streamline procedures related to appeals and property attachments, ultimately fostering a more efficient and taxpayer-friendly GST regime.

About GST

GST, or Goods and Services Tax, is a comprehensive indirect tax levied on the supply of goods and services across India.

Here are some key points that describe GST:

Indirect Tax System: GST is an indirect tax that has replaced various indirect taxes previously levied by the central and state governments.
Implementation Date: The GST Act was passed by the Indian Parliament on March 29, 2017, and it came into effect on July 1, 2017.
Unified Tax Law: It serves as a unified tax law for the entire country, streamlining the taxation process and reducing the complexity of the previous tax system.
Multi-Stage Taxation: GST is a multi-stage tax, meaning it is applicable at every step of the supply chain, from the production or manufacturing stage to the final sale to the consumer.
Destination-Based Tax: It is a destination-based tax, implying that the tax is levied based on the location of the consumption of goods or services rather than the location of their production.
Dual Taxation Structure: In the case of intra-state sales, GST is bifurcated into two components – Central GST (CGST) levied by the central government and State GST (SGST) imposed by the respective state governments. For inter-state sales, Integrated GST (IGST) is charged by the central government.

The Goods and Services Tax (GST) system in India consists of three main components, each administered by different levels of government:

CGST (Central Goods and Services Tax): This tax is collected by the Central Government on transactions within a single state. For example, if a transaction occurs within Maharashtra, CGST will be levied.
SGST (State Goods and Services Tax): It is the tax collected by the State Government on intra-state transactions. For instance, when a transaction takes place within Maharashtra, the state government levies SGST.
IGST (Integrated Goods and Services Tax): IGST is imposed by the Central Government on inter-state transactions. For instance, if goods are sold from Maharashtra to Tamil Nadu, IGST will be collected by the central government.

Advantages of GST include the elimination of the cascading effect on the sale of goods and services, leading to a reduction in the overall cost of goods. Moreover, the technological integration of various processes such as registration, return filing, refund applications, and responding to notices has accelerated and streamlined many procedures.

However, some issues have been associated with the implementation of GST.

Some businesses have faced high operational costs due to compliance requirements.
Moreover, certain items, such as braille paper, wheelchairs, and hearing aids, have been criticized for being taxed under GST, leading to them being termed as a ‘Disability Tax’.
Additionally, petrol has not been included under the GST regime, which goes against the idea of a unified tax structure for all commodities.

About GST Appellate Tribunal

The GST Appellate Tribunal is a quasi-judicial body designed to handle and resolve disputes related to the Goods and Services Tax (GST) in India. It functions as an independent entity to hear appeals against orders issued by the GST authorities or the Appellate Authority. The tribunal comprises both a national bench and several regional benches, led by a chairperson appointed by the central government.
The introduction of this tribunal is expected to expedite the resolution of GST-related disputes, alleviating the burden on the higher courts. Under the GST system, if an individual is dissatisfied with a decision made by a lower court, they can file an appeal to a higher court, following a hierarchy that includes the Adjudicating Authority, Appellate Authority, Appellate Tribunal, High Court, and ultimately the Supreme Court.
The need for such a tribunal arises from several factors, including the aim to alleviate the burden on the judiciary caused by the increasing number of GST disputes. Additionally, establishing an independent mechanism for resolving GST-related conflicts can enhance the efficiency and effectiveness of the GST system, promoting greater certainty and predictability in the tax regime and mitigating the risks of tax evasion.
Presently, the Indian GST system is relatively new, leading to compliance and interpretation challenges. The existing multi-layered adjudication hierarchy can be complex, time-consuming, and financially onerous for taxpayers, particularly small and medium-sized enterprises. The establishment of the GST Appellate Tribunal aims to address these issues and streamline the process of resolving GST disputes in India.

About Reverse charging of Goods and Services Tax (GST)

Reverse charging of Goods and Services Tax (GST) is a mechanism that shifts the responsibility of paying the tax from the supplier to the recipient of goods or services.
In normal circumstances, the supplier is responsible for paying the GST to the government. However, in cases of reverse charging, the recipient becomes liable to pay the tax instead of the supplier.
This mechanism is typically employed when the supplier is not registered under GST or has failed to remit the GST dues to the government. Reverse charging is a means for the government to ensure that the GST liability is met even if the supplier does not fulfill their obligations.
Several examples of goods and services on which reverse charging is already applicable include services provided by a goods transport agency, services rendered by an advocate to a business entity, supply of manpower for any purpose, renting of a motor vehicle provided by an individual or Hindu Undivided Family (HUF) to a business entity, and supply of specified goods like gold, silver, or precious stones by an unregistered supplier to a registered person.
By implementing reverse charging, the government aims to maintain the integrity of the GST system and ensure that tax liabilities are appropriately fulfilled, even in situations where the supplier may not be compliant with the GST regulations.

3. Demwe hydroelectric project put on hold

Subject : Geography

Section: Places in news

Context:

The standing committee of the National Board for Wildlife (NBWL) has put the Demwe Lower Hydroelectric Project in Arunachal Pradesh on hold till an expert committee asseses its impact on the flora fauna downstream.

Details:

Located on Lohit river, in Lohit district, Arunachal Pradesh
It will cut around 43,000 trees of Kamlang WLS.
Demwe lower HPP is close to two important wildlife habitats: the chapories (riverine islands) of the Lohit River and the Dibru Saikhowa National Park.
Both are important bird areas and habitat for the Bengal florican, an endangered bird species. It will also impact the dolphins downstream.

Dibru Saikowa National Park:

Located in Dibrugarh and Tinsukia districts, Assam, India.
It was designated a Biosphere Reserve in July 1997.
The park is bounded by the Brahmaputra and Lohit rivers in the north and Dibru River in the south.
It mainly consists of moist mixed semi-evergreen forests, moist mixed deciduous forests, canebrakes and grasslands.
It is the largest salix swamp forest in north-eastern India, with a tropical monsoon climate with a hot and wet summer and cool and usually dry winter.
Species in the park:
- Species include Bengal tiger, Indian leopard, clouded leopard, jungle cat, sloth bear, dhole, small Indian civet, Malayan giant squirrel, Chinese pangolin, Ganges dolphin, slow loris, pig tailed macaque, Assamese macaque, rhesus macaque, capped langur, Hoolock gibbon, Asian elephant, wild boar, Sambar deer, hog deer, barking deer, Asiatic water buffalo, and feral horse.
- The park is one of the few places in the world which is home to feral horses.

Chapories island:

A riverine island of Lohit river.
It starts from the Assam-Arunachal Pradesh border near Sadiya and extends eastwards forming part of the ‘Assam Plains’ Endemic Bird Area.
More than 140 species of birds has been listed, and the total diversity could be more than 300 species including a large number of wintering waterfowl, Bengal Florican Houbaropsis bengalensis, White-winged Duck (Cairina scutulata), Great Cormorant Phalacrocorax carbo, Goosanders Mergus merganser, Ibisbill Ibidorhyncha struthersii, and many species of ducks.
OTHER KEY FAUNA: Among major mammals, there are Tiger Panthera tigris, Asian Elephant Elephas maximus, the rare Asiatic Wild Buffalo Bubalus amee, and Hog deer Axis porcinus.

Source of this article: Down to earth

4. Farm fires and weather behind choke; respite likely in 4 days

Subject : Geography

Section: Physical geography

Worsening air quality in Delhi:

The combined effect of stubble burning in neighbouring States, local pollutants, and unfavourable meteorological conditions resulted in Delhi’s air quality slipping into the worst- ‘severe plus’– category for the first time this season.

Details:

The Graded Response Action Plan (GRAP), a set of emergency measures implemented in Delhi-NCR during the winter, has four sets of responses depending on the severity of air pollution — Stage 1, ‘poor’ (AQI 201-300); Stage 2, ‘very poor’ (AQI 301-400); Stage 3, ‘severe’ (AQI 401-450); Stage 4, ‘severe plus’ (AQI over 450).

Why does air pollution increase in winter in Delhi?

Subsidence of air and continental effect: The atmospheric circulation over this region is usually anti-cyclonic in nature. This makes the air move downwards thus preventing the pollutant particles from escaping vertically, and keeping them near the surface. Delhi is also a landlocked territory, thus worsening the air pollution.
Temperature Inversion: As you may have learned in school, cold air sinks and warm air rises. The reason for this is that cold air is denser and has less space between the molecules of gas. When the temperature drops and cold air blankets the ground, any warm air is forced to pass over it. In this way, the cold air can form a kind of cap. Pollutants aren’t as free to escape and disperse in the dense colder air. You can think of this as a sort of pollutant catching blanket that covers the ground when it is winter. Cold air is denser and moves slower than warm air. This density means that cold air traps the pollution but also doesn’t whisk it away. Air pollution in winter remains in place for much longer and therefore is breathed in at a higher rate than during the summer. The U.S. has made efforts to reduce air pollution

Wind pattern: Winds flow from Pakistan and Punjab, crossing Haryana and reaching Delhi. These winds have been pushing pollutants from Punjab and Haryana into Delhi.
Boundary layer of troposphere: The boundary layer (the layer of the troposphere in contact with the surface of the earth) has been lower. The boundary layer generally becomes shallower from November onwards, suppressing the atmospheric ability to push pollutants upwards. As the temperature falls further, the boundary layer falls further.
- The wind has changed direction from southeast to northwest. This is very adverse meteorology. The ventilation, which is the dispersion capacity of the atmosphere, and depends on boundary layer height and vertical wind velocity, is poor.
Spike in agricultural waste burning in the Punjab-Haryana region: This is the harvesting season for paddy crops in the Punjab-Haryana region, which leads to crop waste burning for the sowing of other crops. Polluting particles accumulate over the delhi-NCR region making the air polluted.

How will it be improved?

Better wind speed or rainfall can improve the situation. Western disturbance can improve wind speed and change the anti-cyclonic conditions to cyclonic conditions, with the dispersion of polluting particles away from Delhi.

Source of this article: Indian Express

5. National dam safety team faults planning, and design of Kaleshwaram project’s barrage in Telangana

Subject : Geography

Section: Places in news

Context:

The six-member expert team of the National Dam Safety Authority (NDSA) examined the sinking of piers in Block-7 of the Medigadda (Laxmi) Barrage of the Kaleshwaram irrigation project in Telangana.

Details:

The committee stated that a combination of issues involving planning, design, quality control and operation and maintenance have led to the damage.
Two other barrages — Annaram and Sundilla barrages — have also similar designs and construction methodologies.

Madigadda barrage:

The Lakshmi Barrage, also known as the Medigadda Barrage is the starting point of the Kaleshwaram Project which envisages the construction of three barrages between Yellampally & Medigadda.
Its objective is to utilize Godavari water for drinking and irrigation. The Barrage/Project site is located at Medigadda Village, Mahadevpur Mandal, Jayashankar Bhupalpally district in Telangana State, India.

Kaleshwaram irrigation project:

It is a multi-purpose irrigation project on the Godavari River in Kaleshwaram, Bhupalpally, Telangana.
The project starts at the confluence point of the Pranahita River and Godavari River.
Originally called the Pranahita-Chevella project in erstwhile Andhra Pradesh, it was redesigned, extended and renamed as the Kaleshwaram project in Telangana in 2014.

Need of the project:

It would bring drinking water and irrigation to the backward areas of Telangana.
It will also help to restore the groundwater level to its original state by the way of shifting from the usage of groundwater for irrigation to the usage of surface water.
The project will also support Mission Kakatiya and Mission Bhagiratha schemes designed to provide drinking water to many villages and improve the capacities of tanks.

National Dam Safety Authority (NDSA):

The Dam Safety Act 2021 was introduced in response to dam failures caused by deficient surveillance and maintenance.
It establishes key responsibilities and requires the formation of national and state-level bodies for its implementation.
The Act outlines the following provisions:
- National Committee on Dam Safety: Responsible for overseeing dam safety policies and regulations.
- National Dam Safety Authority: Tasked with implementing and resolving state-level disputes.
- Chairman of the Central Water Commission (CWC): Heads dam safety protocols at the national level.
- State Committee on Dam Safety (SCDS) and State Dam Safety Organisation (SDSO): To be established at the state level.

Source of this article: The Hindu

6. For Mumbai pollution, construction dust, unfavourable meteorology obvious culprits but can’t rule out climate change

Subject : Environment

Section: Pollution

Context:

Mumbai has been facing ‘poor’ air quality for the past few days according to the System of Air Quality and Weather Forecasting and Research data (SAFAR).

Details:

The city’s PM2.5 concentration was about 17 times the safe value recommended by the World Health Organization, according to IQAir, a Swiss air quality information platform.

What is causing the smog in Mumbai?

In the post-monsoon winter time, a condition of stagnation prevails across India because of boundary layer suppression, the onset of winter and the slowing of wind speeds among others.
Construction projects in Mumbai and surrounding areas

Smog:

Smog = smoke + fog (smoky fog) caused by the burning of large amounts of coal, vehicular emission and industrial fumes (Primary pollutants).
Smog contains soot particulates like smoke, sulphur dioxide, nitrogen dioxide and other components.
At least two distinct types of smog are recognized: sulfurous smog and photochemical smog.

Types of smog:

Sulfurous smog (London smog):
- First formed in London.
- It results from a high concentration of Sulfur Oxides (SOx) in the air and is caused by the use of sulfur-bearing fossil fuels, particularly coal (Coal was the main source of power in London during the nineteenth century. The effects of coal burning were observed in the early twentieth century).
- This type of smog is aggravated by dampness and a high concentration of suspended particulate matter in the air.
Photochemical smog (Los Angeles smog):
- It occurs most prominently in urban areas that have large numbers of automobiles (Nitrogen oxides are the primary emissions).
- Photochemical (summer smog) forms when pollutants such as nitrogen oxides (primary pollutant) and organic compounds (primary pollutants) react together in the presence of SUNLIGHT. A gas called OZONE (Secondary pollutant) is formed.
- Nitrogen Dioxide + Sunlight + Hydrocarbons = Ground-level Ozone
- The resulting smog causes a light brownish colouration of the atmosphere, reduced visibility, plant damage, irritation of the eyes, and respiratory distress.
Haze:
- Haze is traditionally an atmospheric phenomenon where dust, smoke and other dry particles obscure the clarity of the sky (No condensation. Smog is similar to haze but there is condensation in smog).
- Sources for haze particles include farming (ploughing in dry weather), traffic, industry, and wildfires.

Source of this article: Down to Earth

7. El Nino may be drying out the southern hemisphere — here’s how that affects the whole planet

Subject : Geography

Section: Physical geography

Context:

A new study has shown that the southern hemisphere has been drying out more than the northern hemisphere over the past two decades (2001-2020).

Key findings of the study:

The principal cause is the weather phenomenon known as El Nino, which occurs every few years when ocean water in the eastern Pacific is warmer than usual.
Even though the southern hemisphere has only a quarter of the global land area (excluding Antarctica), it appears to have a substantially greater effect on global water availability than the northern hemisphere.
- Water availability is the net difference between the amount of water supplied to the landscape, in the form of rainfall on land, and the water removed to the atmosphere by general evaporation or by plants through their leaves.
Regions facing a decrease in water availability: South America, most of Africa, and central and northwestern Australia.
The water availability in the northern hemisphere is more or less balanced due to extensive human influences such as irrigation, dams and food production.

Impact of drying of Southern continents:

South America includes the Amazon rainforest, which is a key regulator for the climate, as well as a globally important habitat for species and home to many Indigenous communities.
Drying of the rainforest would reduce vegetation, increase the risk of fire, potential to release billions of tons of carbon currently locked into forest vegetation and soils.
South America is a major agricultural exporter of soybeans, sugar, meat, coffee, cassava, and fruits for the global market. Changes in water availability will increase stress on food systems globally.
Change in vegetation patterns. Climate vulnerability to coastal populations.

El-Nino phenomenon:

El Niño means Little Boy or Christ Child in Spanish.
It is a weather phenomenon that describes the anomalous warming of surface waters in the eastern tropical Pacific Ocean. It happens more often than La Nina.
During an El Nino year, air pressure falls across broad regions of the central Pacific and along the South American coast.
In the western Pacific, a weak high replaces the regular low-pressure system.
Weak Walker Cell trade winds are diminished as a result of this shift in pressure pattern. Walker Cell can even be reversed at times.
This decrease permits the equatorial countercurrent (current through the doldrums) to amass warm ocean water along the Peruvian and Ecuadorian coasts.
The concentration of warm water causes the thermocline in the eastern Pacific Ocean to descend, cutting off the upwelling of cold deep ocean water near Peru’s coast.
El Nino weather patterns bring dryness to the western Pacific, rain to South America’s equatorial coast, and convective storms and hurricanes to the central Pacific.

Source of this article: Down to earth

8. More children in Delhi have cancers than any other Indian city; is air pollution to blame?

Subject : Science and Tech

Section: Health

Context:

India’s capital Delhi was the worst-affected among all places that have a cancer registry in the country, according to the latest available data by the National Cancer Registry Programme from 2012 to 2016.

Details:

In children between the ages of 0 and 14 years, the proportion of childhood cancers relative to cancers in all age groups varied between 0.7 per cent and 3.7 per cent.
There is enough evidence to show that exposure to air pollution can lead to cancer in adults. However, this correlation is not studied much in children.
For all countries included in the study, Delhi has the sixth-highest number of cancer cases for boys and tenth highest in cases of girls.
Boys in Delhi have the highest cases of cancer per million, followed by China’s Jianmeng among Asian countries.
Regions in India affected by air pollution-borne cancer: Delhi, Punjab, Mumbai, Manipur, Meghalaya and Arunachal Pradesh among others.

Air pollution’s Health impact on children:

Children would be more at risk as they breathe more rapidly than adults, absorb more pollutants, and live closer to the ground, where pollutants tend to accumulate.
As many as 203.1 boys per million are affected by all the broad kinds of cancers in Delhi, compared to just 12.2 per million in Pasighat, Arunachal Pradesh.
Pollutants such as benzene, NOx and particulate matter are responsible for non-Hodgkins lymphomas in children.
Exposure to air pollution is linked to acute myeloid leukaemia (AML) and non-Hodgkin lymphoma.

Overall health impacts of air pollution:

Both short- and long-term exposure to air pollution can lead to a wide range of diseases, including stroke, chronic obstructive pulmonary disease, trachea, bronchus and lung cancers, aggravated asthma and lower respiratory infections.
The World Health Organization (WHO) provides evidence of links between exposure to air pollution and type 2 diabetes, obesity, systemic inflammation, Alzheimer’s disease and dementia.
The International Agency for Research on Cancer has classified air pollution, in particular PM2.5, as a leading cause of cancer.
Chronic exposure can affect every organ in the body, complicating and exacerbating existing health conditions.

Source of the article: Down To Earth

9. India’s own CAR-T cell therapy: What is it, when will it be available, and at what cost?

Subject : Science and Tech

Section: Health

Context:

The Central Drugs Standard Control Organisation (CDSCO) granted market authorisation for NexCAR19, India’s first indigenously developed CAR-T cell therapy, to ImmunoACT, a company incubated by IIT Bombay.

What is CAR-T cell therapy, and how do CAR-T cells find and destroy cancer cells?:

In CAR-T therapy, scientists genetically modify T-cells into cancer-fighting cells which are then put back into the body, and they search and kill the cancer cells — especially in blood cancers like leukaemia and lymphomas.
- T-cells are special cells (white blood cells that find and fight illness and infection) whose primary function is cytotoxic, meaning they can kill other cells.
Effectiveness compared to other cancer treatments:
- While chemotherapy and immunotherapy may add a few months or years to a cancer patient’s life, cell-and-gene therapy is designed to cure and provide lifelong benefits. It makes treatment easier with a one-time therapy.

Is NexCAR19 a type of CAR-T therapy?

NexCar19 is a type of CAR-T and gene therapy developed indigenously in India by ImmunoACT (an IIT Bombay incubated company).
India is now one of the first developing countries to have its indigenous CAR-T and gene therapy platform.
NexCAR19 carries the CD19 protein which acts like a flag on cancer cells, which allows CAR-T cells to recognise and attach themselves to the cancer cells and start the process of elimination.
Who can get the NexCAR19 therapy?
It is for people with B-cell lymphomas who didn’t respond to standard treatments like chemotherapy. B-cell leukaemia is most common among children, however, ImmunoACT has received CDSCO approval for use in patients aged 15 years and older.

Effects of this therapy:

It leads to significantly lower drug-related toxicities. It causes minimal damage to neurons and the central nervous system, a condition known as neurotoxicity.
- Neurotoxicity can sometimes occur when CAR-T cells recognise the CD19 protein and enter the brain, potentially leading to life-threatening situations.
The therapy also results in minimal Cytokine Release Syndrome (CRS), which is characterised by inflammation and hyperinflammation in the body due to the death of a significant number of tumour cells.

Will it be covered under the insurance schemes?

When a therapy is approved by regulatory agencies like CDSCO or DCGI, it typically should be covered by national insurance schemes and private insurance companies. However, since this is an expensive treatment, the extent of coverage and accessibility to insurance may vary.

Source of this article: Indian Express

10. Five Karnataka villages come under surveillance after Zika virus outbreak

Subject : Science and Tech

Section: Health

Context:

The Karnataka Health Department, which is closely monitoring the situation in Chickballapur after a mosquito pool in Thalakayalbetta village of the district was found to be positive for Zika, has sent serum samples of 30 pregnant women from five villages in the containment zone to the National Institute of Virology (NIV), here, for testing.

About Zika Virus:

It is a mosquito-borne virus that was first identified in the Zika Forest of Uganda in 1947.

Transmission

It is primarily transmitted to humans through the bite of infected Aedes mosquitoes, particularly Aedes aegypti and Aedes albopictus.
It can also spread through sexual contact, blood transfusion, and from an infected mother to her baby during pregnancy or childbirth.

Symptoms

Many people infected with this virus do not experience any symptoms (asymptomatic).
When symptoms do occur, they are often mild and include fever, rash, joint pain, muscle pain, headache, and red eyes (conjunctivitis).
Symptoms typically appear two to seven days after being bitten by an infected mosquito and can last for several days to a week.

What are the complications?

This virus infection is usually mild, it can have serious consequences for pregnant women and their babies.
Infection during pregnancy can lead to birth defects such as microcephaly, as well as other neurological disorders in the baby.
It has also been linked to Guillain-Barré syndrome, a rare autoimmune disorder that can lead to muscle weakness and paralysis.

Treatment: There is no specific treatment available for Zika virus infection or disease.