Daily Prelims Notes 1 February 2022

February 1, 2022
Posted by: OptimizeIAS Team
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Daily Prelims Notes

1 February 2022

Table Of Contents

1. CROP DIVERSIFICATION

Topic: Economy

In News: Centre has adopted MSP, but States must facilitate crop shift’ says MSP panel in Economic Survey.

About:

There is an urgent need for crop diversification in view of the severe water stress in areas where paddy, wheat and sugarcane are grown as well as to increase oil seed production and reduce dependency on imports of cooking oil.
While the Centre had adopted minimum support prices (MSP) for farm produce as a key tool to encourage crop diversiﬁcation, the onus was on States to take coordinated action to facilitate a shift towards crops with higher value and lower water consumption.
The survey urged for an increase in funding for agricultural research rather than farm subsidies, noting that “every rupee spent on agricultural research and development yields better re- turns compared subsidies.
The government noted that agriculture continued to be a major driver of the economy in the pandemic era, with the sector’s growth rate rising from 3.6% in 2020-21 to 3.9% in 2021-2022.

2. CROSS BORDER INSOLVENCY

Topic: Economy

In news: The Economic Survey 2021- 22 has called for a standardised framework for cross- border insolvency.

About:

The Insolvency and Bankruptcy Code (IBC) at present does not have an instrument to restructure ﬁrms involving cross-border jurisdictions.
The proposal to frame a robust cross-border insolvency framework has already been highlighted in the report of the Insolvency Law Committee under Injeti Srinivas which had recommended the adoption of the United Nations Commission on International Trade Law (UNCITRAL), with certain modiﬁcations to make it suitable to the Indian context.

United Nations Commission on International Trade Law (UNCITRAL)

UNCITRAL on Cross-Border Insolvency, 1997 has emerged as the most widely accepted legal framework to deal with cross-border insolvency is- sues,” the Survey said.
It has been adopted by 49 countries so far, such as Singapore, the U.K., the U.S., South Africa and Korea.
This law works on four main principles:
- Access,
- Recognition,
- Cooperation
- Coordination

3. Govt. on track to meet the FY22 ﬁscal deﬁcit target

Topic: Economy

In news: The Centre is well on track to meeting its ﬁscal deﬁcit target for the current ﬁscal on the back of a robust rebound in tax revenues, as per the Economic Survey for 2021-22.

About:

The agile ﬁscal policy approach adopted by the Central Government, coupled with the buoyant revenue collection received so far this year, has created headroom for taking up additional ﬁscal policy interventions based on the need of the evolving situation.
In Budget 2021-22, Finance Minister Nirmala Sitharaman had, in the wake of the Covid-19 pandemic, disbanded the government’s ﬁscal consolidation roadmap to reach a ﬁscal deﬁcit of 3 per cent of GDP, but announced its medium-term objective to reduce the ﬁscal deﬁcit to 4.5 per cent of GDP by 2025-26. She had pegged the ﬁscal deﬁcit target at 6.8 per cent of GDP for 2021-22 against 9.2 per cent in the previous ﬁscal.
In the ﬁrst eight months of the current ﬁscal, the Centre’s ﬁscal deﬁcit stood at 46.2 per cent of the full-year target.
As per IMF’s latest World Economic Outlook projections, India’s real GDP projected to grow at 9 percent in 2021-22 and 2022-23 and at 7.1 percent in 2023-2024, which would make India the fastest growing major economy in the world for all 3years.
Agriculture and allied sectors expected to grow by 3.9 percent; industry by 11.8 percent and services sector by 8.2 percent in 2021-22.
On demand side, consumption estimated to grow by 7.0 percent, Gross Fixed Capital Formation (GFCF) by 15 percent, exports by 16.5 percent and imports by 29.4 percent in 2021-22.
The Economic Survey noted that India’s public debt portfolio is “stable and also sustainable”.
“Public debt portfolio exhibits low currency and interest rate risk owing to low reliance on external borrowing and issuance of majority of securities at ﬁxed coupon rate. Further, most of the external borrowing are from oﬃcial sources which are of long term and concessional in nature.

4. AGILE APPROACH

Topic: Economy

In news: The central theme of this year’s Economic Survey is the “Agile approach”, implemented through India’s economic response to the COVID-19 Pandemic shock.

About:

The preface of Economic Survey states that the “Agile approach” is based on feed-back loops, real-time monitoring of actual outcomes, flexible responses, safety-net buffers and so on.
The Economic Survey 2021-22 argues that the “Agile framework: is particularly relevant today because of the explosion of real-time data that allows for constant monitoring.
Such information includes GST collections, digital payments, satellite photographs, electricity production, cargo movements, internal/external trade, infrastructure roll-out, delivery of various schemes, mobility indicators etc.

What is an Agile Framework?

It is a framework for project and policy implementation that is considered highly eﬃcient for getting work done.
It was developed in 2001 and is based on 12 principles, which include customer satisfaction, collaboration, adapting to change, feed- back loops and breaking project silos.

What was the framework that India followed earlier?

India and most countries across the world typically follow the Waterfall Approach. This involves analysis of the issue, detailed planning and meticulous implementation.
India’s earlier five-year plans were based on this.
Waterfall Framework is linear and is developed systematically from phase to phase.
this approach works best for projects with concrete timelines, well-deﬁned de- liverables and little uncertainties.

Why is the Agile Framework preferred today?

Real time availability of data allows constant monitoring of a policy at a time when there are lot of uncertainties helps governments to adopt the Agile Framework.
The Short term policy responses can be tailored to an evolving situation rather than what a model may have predicted.

Is the Agile Framework economical to implement?

According to some studies, projects implemented through Agile Framework are four times cheaper than a similar project implemented through Waterfall Strategy.

5. Move over Bengaluru- Delhi is now start-up capital

Topic: Economy

In News: Delhi has replaced Bangalore as the start-up capital of India, according to the Economic Survey 2021-22.

About:

The national capital added over 5,000 recognised start-ups compared to the 4,514 start-ups added in India’s software capital between April 2019 and December 2021.
Maharashtra emerged the State with the highest number of recognised start- ups with 11,308 ventures.
Gurgaon and Noida are drivers of this trend with their cosmopolitan neighbourhoods, co-working spaces, af- fordable rentals, and access to the largest urban MRT system in the country.
Several things have combined to build this momentum in favour of Delhi-NCR.
- The early set of successful internet entrepreneurs from Delhi-NCR sparked a lot of enthusiasm and aspiration among younger people.
- They were then followed by the next wave of success that included Zomato, Policybazaar, PayTM, etc., which have gone all the way to IPO.
Delhi as the start-up capital seemed to rest primarily on the number of recognised start-ups registered in Delhi over Bengaluru over a 33-month period.
The Economic Survey noted that India had a record number of start-ups (44) reach Unicorn status in 2021, and overtook the UK to emerge the No 3 country by number of unicorns after the US and China. As of January 14, 2022, India had 83 unicorns with a total valuation of $277.77 billion.

6. New FTAs review of existing agreements can push exports

Topic: Economy

In News: Over the last 25 years, the country has signiﬁcantly diversiﬁed its export destinations, but more than 40 per cent of India’s exports is still accounted for by only seven countries, according to the Economic Survey released by the Finance Ministry.

About:

India has been negotiating free trade agreements (FTAs) with several partners – both bilateral and regional – over the past many years with a view to promote India’s exports. A further push in this direction would help provide the institutional arrangements to diversify both products and destinations.
India’s exports in April-December 2021 posted a 49.7 per cent growth (year-on-year) to $301.4 billion, but imports grew at a sharper rate of 68.9 percent to $443.8 billion during the period, more than doubling the trade deﬁcit to $142.4 billion. This is a cause for concern and underlines the need for greater eﬀorts to boost exports.
The US remained the top export destination for India in April-November 2021, followed by United Arab Emirates and China.
However, China’s share in India’s total imports reduced to15.5 per cent from 17.7 per cent in corresponding period a year earlier, reﬂecting increased diversiﬁcation of India’s import sources.
Belgium replaced Malaysia and entered into the top-10 leading export destinations during April-November 2021, with more than $1 billion worth of pearls, precious and semi-precious stones, and iron and steel shipped to the country.
Other countries among India’s top ten export destinations include Bangladesh, Hong Kong, Singapore, the Netherlands, the UK and Germany.

7. Govt swaps ₹1.2-lakh-cr G-Secs oil bonds

Topic: Economy

In News: In the run-up to the Budget for FY23, the Union government did a conversion transaction for G-Secs and oil bonds with RBI on January 28 for ₹1,19,701 crore.

About:

The transaction involved buying back securities maturing in FY2022-23, FY2023-24 and FY2024- 25 from the RBI and issuing fresh securities for equivalent market value, to make the transaction cash-neutral.
Conversion of G-Secs maturing in the next three ﬁnancial years into new G-Secs maturing at a later date will ease the redemption pressure on the government.
Of the six G- Secs (aggregating ₹63,648 crore) maturing in 2022, three each were converted into G-Secs maturing in 2028 and 2029, respectively.
The GoI Floating Rate Bond maturing in 2024 (aggregating ₹27,330 crore) has been converted into a G-Sec maturing in 2035.

Oil bonds

Six oil bonds maturing between 2023 and 2025, were converted into G-Secs maturing in 2030
The oil bonds were issued by the previous UPA regime as compensation to oil marketing companies in lieu of cash subsidies.
Bidding in the auction for conversion implies that the market participants agree to sell the source security/ies to the government and simultaneously agree to buy the destination security from the government.

8. Clean energy storage ‘key to net zero plan’

Topic: Economy

In News: The government’s move to ensure a committed supply of raw material, especially for renewable energy (RE) and e- mobility sectors.

About:

The recent surge in prices of natural gas in Europe due to high energy demand, coupled with cold spells across the region and slower winds to run wind turbines, have resulted in lower electricity output.
The energy crisis being experienced by Europe brings to the fore the need to have a diversiﬁed mix of sources of energy, with fossil fuels as an integral part.
India is working on acquiring mines of strategic minerals such as lithium and cobalt in producing countries like Australia and Lithium Triangle ( Argentina, Bolivia and Chile).
As India prepares a roadmap for net zero carbon emissions by 2070, the transformation is “mineral-intensive” and it is “pertinent” that government policy addresses the issue of supply of metals used for making solar PV modules and storage batteries, Economic Survey said.
The World Bank, in its report ‘Minerals for Climate Action’, has mentioned that the transition from conventional fossil fuel-based energy to clean energy as well as battery storage will be more mineral-intensive.
Minerals and metals like copper, aluminium, iron, manganese, nickel, etc are critical for developing clean energy sources like solar photo- voltaic (PV), wind, nuclear, while minerals like lithium and graphite are important for energy storage.
The inelastic supply of minerals is already increasing the prices of minerals which are likely to shoot up in the future.
The Survey also recommended encouraging R&D to ensure eﬀortless switch to renewable sources of energy, which may also include focus on developing technology that recycles, re- uses and repurposes minerals.

9. Capital markets more important than banks for economic revival

Topic: Economy

In News: The Survey says that capital markets have been more important than banks for the economy’s revival in the current ﬁscal.

About:

It pointed out that the current ﬁnancial year proved to be exceptional for primary markets with a boom in fund-raising through IPOs by many new-age companies/tech start-ups/unicorns.
In 2021-22, the risk capital (that is money raised from capital markets) has so far been more important than the banks in providing ﬁnance to the revival. Overall, debt mobilisation slowed, in contrast with the equity market said the Survey.
Corporate bonds
- On the debt side, funds raised through corporate bonds was around ₹3.7-lakh crore in April- November 2021 which declined compared to ₹4.9-lakh crore mobilised during April-November 2020.

A primary market is a source of new securities. Often on an exchange, it’s where companies, governments, and other groups go to obtain financing through debt-based or equity-based securities.

In the primary market, new stocks and bonds are sold to the public for the first time.
In a primary market, investors are able to purchase securities directly from the issuer.
Types of primary market issues include an initial public offering (IPO), a private placement, a rights issue, and a preferred allotment.
Stock exchanges instead represent secondary markets, where investors buy and sell from one another.
After they’ve been issued on the primary market, securities are traded between investors on what is called the secondary market—essentially, the familiar stock exchanges.

10. Renewable energy capacity grew 2.9 times; solar over 18 times in seven-and-a-half years

Topic: Economy

In News: India witnessed the highest growth in renewable energy (RE) capacity addition among all global economies in the last seven and half years, with RE capacity growing by 2.9 times, while solar energy surged by more than 18 times, the Survey said.

About:

Renewable energy (excluding large hydro) constitutes over 24.71 per cent of the country’s installed power capacity and around 10.7 per cent of the electrical energy generation for 2020-21.
As of October 2021, India’s total RE installed capacity (excluding hydro power above 25 MW) has reached over 103.05 giga watts (GW), it added.
During the last 7.5 years, if large hydro is included, the share of RE in electric installed capacity is estimated to be about 38.27 per cent (as of October 2021)
To boost the use of RE and to facilitate its evacuation and reshaping the grid for future requirements, the government initiates the Green Energy Corridor (GEC) projects. This is aimed at synchronising electricity produced from renewable sources with conventional power stations in the grid.
- The ﬁrst component of the scheme, inter-State GEC with target capacity of 3200 circuit kilometer (ckm) transmission lines and 17,000 MVA capacity sub-stations, was completed in March 2020.
- The second component —intra-State GEC with a target capacity of 9700 ckm transmission lines and 22,600 MVA capacity substations is expected to be completed by June 2022, as per economic survey.
PM-KUSUM scheme
- Under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM- KUSUM) scheme, over 77,000 stand-alone solar pumps, 25.25 MW capacity solar power plants and over 1,026 pumps were solarised as of December, 2021.
Under the development of solar parks and ultra mega solar power projects programme, with a target capacity of 40 GW by March 2024, 50 solar parks have been sanctioned with a combined capacity of 33.82 GW in 14 states. Solar power projects of an aggregate capacity of around 9.2
Besides, the government has notiﬁed the oﬀshore Wind Energy Policy to harness the potential of oﬀshore wind energy along India’s coastline.
- The Ministry of New and Renewable Energy is developing a strategy and roadmap for installation of oﬀshore wind projects oﬀ the coast of Gujarat and Tamil Nadu.
As of December 2021, capacity of around 4.25 GW of wind-solar hybrids have been commissioned.

11. EXTERNAL SECTORS (ECONOMIC SURVEY)

Topic: Economy

In News: The Union Minister for Finance Nirmala Sitharaman presented the Economic Survey 2021-22 in Parliament.

About:

India’s merchandise exports and imports rebounded strongly and surpassed pre-COVID levels during the current financial year.
Net capital flows were higher at US$ 65.6 billion in the first half of 2021-22, on account of continued inflow of foreign investment, revival in net external commercial borrowings, higher banking capital and additional special drawing rights (SDR) allocation.
India’s external debt rose to US $ 593.1 billion at end-September 2021, from US $ 556.8 billion a year earlier, reflecting additional SDR allocation by IMF, coupled with higher commercial borrowings.
Foreign Exchange Reserves crossed US$ 600 billion in the first half of 2021-22 and touched US $ 633.6 billion as of December 31, 2021.
As of end-November 2021, India was the fourth largest forex reserves holder in the world after China, Japan and Switzerland.

12. Supreme Court has not acted as the ‘sentinel on the qui vive’

Topic: Indian Polity

About:

In the last few years, the Indian Supreme Court has delivered some judgments of far- reaching consequence.
It declared the right to privacy a fundamental right; decriminalized consensual sexual conduct between adults of the same sex; recognised transgender persons as the third gender; and outlawed triple talaq. These decisions shore up the belief in republican values like liberty and equality reiﬁed in our Constitution.
However there are several black marks on the Supreme Court’s record. According to Vidhi Centre for Legal Policy tracker there are 25 main cases pending before the ﬁve-judge constitution bench and ﬁve cases each pending before the seven-judge and nine-judge benches. These cases relate to signiﬁcant constitutional and other legal matters that can have serious repercussions on the fundamental rights of ordinary citizens and our core republican values.
Some of the important cases gathering dust in the Supreme Court are as follows.
- First, a deluge of petitions was ﬁled before the Supreme Court challenging the constitutionality of the Citizenship (Amendment) Act, 2019, that provides non-Muslim com- munities from Bangladesh, Pakistan, and Afghanistan a fast-track route to Indian citizenship.
- Second, innumerable petitions have been filed challenging the Presidential Order of August 5, 2019 that eﬀectually diluted Article 370 of the Constitution and split Jammu and Kashmir into two Union Territories.
- Third, petitions challenging the constitutionality of the Constitution (One Hundred and Third Amendment) Act, 2019 that provides reservations in public educational institutions and government jobs for economically weaker sections.
- Fourth Vivek Narayan Sharma v. Union of India is in the Supreme relates to the legality of demonetisation of all ₹500 and ₹1,000 notes aimed at curbing black money.
- Fifth, the Supreme Court has failed to accord proper hearing in the last four years to the constitutional challenge to the electoral bonds Constitutional duty.

13. Non-farming businesses

Topic: Agriculture

Concept:

Animal husbandry:

Animal husbandry refers to livestock raising and selective breeding. It is the management and care of animals in which the genetic qualities and behaviour of animals are further developed for profit.

A large number of farmers depend upon animal husbandry for their livelihood. It supports the livelihood of almost 55% of the rural population.

India is the highest livestock owner of the world.

As per the 20th Livestock Census, the total Livestock population is 535.78 million in the country showing an increase of 4.6% over Livestock Census-2012.

Animal rearing has multidimensional potential.

For instance, Operation Flood, launched in 1970, helped dairy farmers direct their own development, increased milk production (“a flood of milk”), augmented rural incomes and ensured reasonable prices for consumers.

Dairy sector:

With the help of White Revolution, India has transitioned from a milk-deficient country to the largest producer of milk globally.
The Anand model (Amul), which has been replicated across the country, boosted milk production.
Harvesting animals for dairy and animal-based products is crucial for food security, poverty alleviation and other social needs.
Harvesting animals for dairy and animal-based products in India is a major source of livelihood for 150 million dairy farmers.
The dairy sector accounts for 4.2% of the national gross domestic product.
Dairy sector is the second-largest employment sector after agriculture in India.

Fisheries:

Fisheries and aquaculture are an important source of food production, nutritional security, employment, and income in India.
The fisheries sector is a direct source of livelihoods for more than 20 million fishers and fish farmers; contributes INR 1.75 trillion annually to the gross value added to India’s economy; and is a major export earner, with fish being one of the most important agricultural commodities to be exported from India.
Blue Revolution, the Neel Kranti Mission has the vision to achieve economic prosperity of the country and the fishers and fish farmers as well as contribute towards food and nutritional security through full potential utilization of water resources for fisheries development in a sustainable manner, keeping in view the bio-security and environmental concerns.

Status of Indian fisheries:

Fisheries are the primary source of livelihood for several communities.
India is the world’s second-largest fish producer with exports worth more than Rs 47,000 crore.
Fisheries are the country’s single-largest agriculture export, with a growth rate of 6 to 10 per cent in the past five years.
Its significance is underscored by the fact that the growth rate of the farm sector in the same period is around 2.5 per cent.
It has a marine fisher population of 5 million; 10.5 million people are engaged in inland fishery and fish farming.
The investment of Rs 3,000 crore in the Blue Revolution is being supplemented through the Rs 7,523-crore Fisheries and Aquaculture Infrastructure Development Fund. This will meet the capital investment requirement of this sector.
The productivity of freshwater fish farms has gone up to more than 3 metric tonnes per hectare from the 2.5 tonnes per hectare.
Productivity of brackish water coastal aquaculture has touched 10 to 12 metric tonnes per hectare — a sharp increase from the previous two to four tonnes per hectare.
The marine fishery potential in the Indian waters have been estimated at 31 MMT constituting about 43.3% demersal, 49.5% pelagic and 4.3% oceanic groups.

The allocation for the Ministry of Fisheries, Animal Husbandry and Dairying was increased by 23 per cent to ₹4,820.82 crore during 2021-22 (BE) from ₹3,918.31 crore during 2020-21 (RE).

14. FDI in food processing

Topic: Economy

Context:

FDI in food processing surged 86% in April-Sept FY22.

Concept:

The food processing sector witnessed a surge in Foreign Direct Investment (FDI) inflows in FY22 after it had recorded a massive dip in inflows in the previous fiscal.
According to the Survey, FDI in the food processing sector in April-September 2021-22stood at $410.62 million.
This was up 86 per cent compared to the corresponding period in the previous year.
FDI inflows in the sector in the April-September period in 2020-21 was at $220.42 million.
Overall, in FY21, FDI inflows in the sector had declined by about 56 per cent to about $393.4 million from $904.7 million in FY 2019-20. The massive dip was likely due to the pandemic outbreak in the year.
“The sector has witnessed FDI equity inflow of $4.99 billion during the period April2014 to September 2021.
The FDI equity inflow in sector during April to September 2021 was $410.62 million in comparison to $220.42 million in the corresponding period last year,” the Survey said.
The government allows 100 per cent FDI in the food processing sector under the automatic route.
However, in case of trading of food products manufactured or produced in India, including through e-commerce, 100 per cent FDI is allowed under the Government approval route.

Food processing:

Food processing sector in India is a composite sector comprising two broad segments viz. organized and unorganized segments.
There are an estimated 25-lakh micro food processing enterprises in the country, which are unorganized and unregistered.
With 7% of investment in plant & machinery, the unorganized enterprises contribute of 74.3% of employment (a third of which are women), 12% of output and 27% of value addition in the food-processing sector.
Nearly 66 per cent of these units are located in rural areas and about 80 per cent of them are family-based enterprises.
The organized sector with nearly 40,000 units accounts for 93% of the plant & machinery in the sector, in value terms.
This segment accounts for 26% of employment and contributes around 90% of output and 72% GVA

Government initiatives:

The various component schemes under PMKSY being implemented by the Ministry include

Mega food parks,
Integrated cold chain and value addition infrastructure,
Infrastructure for agro-processing clusters,
Creation of backward and forward linkages,
Creation and expansion of food processing and preservation capacities,
Operation Greens and
Food Testing Laboratories

15. India ranks third globally in forest area gain: Survey

Topic: Environment

Context:

India has increased its forest area in the past decade and ranks third globally in average
India annually added an average 2,66,000 hectares of forest area over the period.
Forests covered 24% of India’s geographical area, accounting for 2% of the world’s total forest area in 2020, the department said.
The top 10 countries account for 66% of the world’s forest area. Brazil (59%), Peru (57%), Democratic Republic of Congo (56%) and Russia (50%) have half or more of their geographical area under forests.
“Much of India’s increase in forest cover from 2011-21 is attributed to enhancement in very dense forest cover, which rose by approximately 20%,” the DEA said.
Social forestry could also play a significant role in this regard,” said the report.

Social forestry:

Social forestry is the management and development of forests with afforestation on barren lands to achieve environmental benefit and rural development.
The term was first used by National Commission on Agriculture, Government of India, in 1976.
It was then that India embarked upon a social forestry project with the aim of taking the pressure off the forests and making use of all unused and fallow land.

State of forest Report 2021: https://optimizeias.com/state-of-forest-report-2021/

16. FDI in pharma

Topic: Economy

Context:

FDI in pharma jumped53% in April-Sept. periodFY21 witnessed a 200% spurt: Survey.

Foreign direct investment (FDI) in the pharma sector in the first half (April-September) of this fiscal increased 53% to ₹4,413 crore from the year earlier.
The inflows continued to be buoyant, the Department of Economic Affairs said in the annual Economic Survey (2021-22) citing how FDI in pharmaceutical sector had witnessed a sudden spurt in 2020-21, showing a200% increase over the previous fiscal.
The extraordinary growth of foreign investments in pharma sector is mainly on account of investments to meet COVID-19 related demands for the rapeutics and vaccines.

Reasons for surplus:

In the section on pharmaceuticals, the government said the country was the largest supplier of generic medicines with a 20% share in the global supply.
Price competitiveness and good quality were two factors behind Indian medicines producers becoming dominant players in the global market.
The Indian pharmaceutical industry ranks third in the world in pharmaceutical production by volume.
During 2020-21, pharma exports totalled $24.4 billion, while pharma import stood at $7 billion, there by generating a $17.5 billion trade surplus.

Scenario of Indian pharma industry:

India enjoys an important position in the global pharmaceuticals sector, as India is the largest provider of generic drugs globally.
The Indian pharmaceutical industry meets over 50% of global demand for various vaccines, 40% of generic demand in the U.S. and 25% of all medicine in the U.K.
Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
In 2020, India is expected to be amongst the top three pharmaceutical markets in terms of incremental growth.
The Indian pharmaceuticals market is the world’s third-largest in terms of volume and thirteenth-largest in terms of value. It has established itself as a global manufacturing and research hub.
India has one of the lowest manufacturing costs in the world – lower than that of the U.S. and almost half of the cost in Europe.

17. Ethanol blending

Topic: Environment

Context:

The ethanol supply in the country to enable blending with petrol is likely to reach302 crore litres, according to the Economic Survey2021-2022.

Concept:

The Centre has set a target of 20% ethanol blending with petrol to be achieved by 2025 to reduce the country’s crude oil import bill, give a boost to the agriculture sector and reduce environmental pollution.
Ethanol supply under the Ethanol Blended Petrol (EBP) Programme is expected to exceed 302 crore litres by the end of Ethanol Supply Year (ESY) 2020-2021 (December 1, 2020 -November 30, 2021) to achieve approximately 1% blending, the Survey noted. This is an increase of 74.5% compared with the previous year.
The ethanol blending target for ESY 2021-22 is 10%.
The government last year notified mass emission standards for E12 (12% ethanol blended with petrol) and E15 (15% ethanol blended with petrol) to enable the automobile industry to manufacture E12- and E15-compliant motor vehicles.

Ethanol blending programme:

https://optimizeias.com/national-policy-on-biofuels/

18. Burkina Faso suspended from AU following coup

Topic: IR

Context:

The African Union suspended Burkina Faso a week after the volatile country suffered its latest coup, as envoys from West Africa and the UN headed for talks with the new junta.

Concept:

African Union:

About AU:

The African Union (AU) is a continental union consisting of 55 countries of the continent of Africa, with exception of various territories of European possessions located in Africa.
The bloc was founded on 26 May 2001 in Addis Ababa, Ethiopia and launched on 9 July 2002 in South Africa.
The intention of the AU is to replace the Organisation of African Unity (OAU), established on 25 May 1963 in Addis Ababa by 32 signatory governments.
The most important decisions of the AU are made by the Assembly of the African Union, a semi-annual meeting of the heads of state and government of its member states.
The AU’s secretariat, the African Union Commission, is based in Addis Ababa.

Objectives:

To achieve greater unity and solidarity between the African countries and Africans.
To defend the sovereignty, territorial integrity and independence of its Member States.
To accelerate the political and social-economic integration of the continent.

Burkina Faso:

A former French colony, Burkina Faso has suffered chronic instability since gaining independence in 1960, including several coups.
Landlocked Burkina Faso, one of West Africa’s poorest countries despite being a gold producer, has experienced numerous coups since independence from France in 1960.