Daily Prelims Notes 17 January 2025

January 17, 2025
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

17 January 2025

Table Of Contents

1. Short-Term Regimen for TB

Sub : Sci

Sec : Health

Why in News

The introduction of shorter, all-oral regimens for tuberculosis (TB), particularly multidrug-resistant TB (MDR-TB), has been hailed as a breakthrough in TB treatment.

What is Tuberculosis:

In 2023, of the 1,75,923 global cases of MDR-TB reported to the WHO, 27% were from India.
MDR-TB arises when TB bacteria become resistant to rifampicin and isoniazid, the two most potent TB drugs, posing a 30-40% mortality risk.
Tuberculosis (TB) is an infectious airborne bacterial disease caused by Mycobacterium tuberculosis.
TB commonly affects the lungs (pulmonary TB) but can also affect other parts (extrapulmonary TB)
Tuberculosis spreads from person to person through the air, when people who are infected with TB infection cough, sneeze or otherwise transmit respiratory fluids through the air.

What is Multidrug-Resistant TB (MDR-TB):

In MDR-TB, the bacteria that cause TB develop resistance to antimicrobial drugs used to cure the disease.
MDR-TB does not respond to at least isoniazid and rifampicin, the 2 most powerful anti-TB drugs.
Treatment options for MDR-TB are limited and expensive.
CBNAAT (Cartridges Based Nucleic Acid Amplification Test) is used for early diagnosis of MDR-TB.

What is Extensively Drug-Resistant TB (XDR-TB):

XDR-TB is a form of multidrug-resistant TB with additional resistance to more anti-TB drugs.
People who are resistant to isoniazid and rifampicin, plus any fluoroquinolone and at least one of three injectable second-line drugs (amikacin, kanamycin, capreomycin) are said to have XDR-TB

Current TB Treatment Regimens:

Drug-Sensitive TB (DS-TB): Treatment involves a 6-month regimen with at least four drugs at the start. Adherence is often challenging due to the duration and side effects.
Requires 18+ months of treatment with five or more drugs, many of which have severe side effects, including hearing loss, depression, and physical discomfort.

Shorter Regimens:

Advantages:
- Reduced treatment duration (6 months for MDR-TB).
- Lower pill burden and improved adherence.
- Potentially less economic burden on patients.
- BPaL Regimen: Includes bedaquiline, pretomanid, and linezolid (BPaL/M adds moxifloxacin). Tested in the Nix-TB and ZeNix trials, the regimen showed promising results with better patient outcomes and reduced side effects when linezolid dosage was adjusted.

Critical Caveats:

Resistance to bedaquiline is a concern, necessitating close monitoring through digital tools and counselling, which are currently lacking in high-burden countries.
Linezolid can cause disabling sensory neuropathy. Alternate regimens need to be clearly defined for patient’s intolerant to the standard treatment.

2. Integrating the HPV Vaccine into India’s National Immunisation Programme

Sub: Sci

Sec: Health

Why in News

Cervical Cancer Awareness Month in January has brought renewed attention to cervical cancer, a major health concern in India. Doctors are emphasizing the importance of screening and the inclusion of the HPV vaccine in the national immunisation programme as a preventive measure.

Cervical Cancer and HPV:

Cervical cancer originates in the cervix, the lower part of the uterus.
India contributes the largest share of the global cervical cancer burden; nearly 1 in every 4 deaths globally due to cervical cancer (as per The Lancet study).
Almost all cervical cancer cases (99%) are linked to infection with high-risk HPV, an extremely common virus transmitted through sexual contact.
It is the third most common cancer among Indian women, with an incidence rate of 18.3% and a mortality rate of 9.1% as per GLOBOCAN 2020.
HPV is responsible for 99.7% of cervical cancers worldwide.
It is a significant cause of cancer among Indian women.
The HPV vaccine prevents HPV infections by stimulating the immune system to produce antibodies that neutralize the virus.
It can prevent more than 90% of cancers associated with HPV.

Status in India:

HPV vaccines are available only via private practitioners despite recommendations from the National Technical Advisory Group for Immunisation (NTAGI).
The NTAGI has suggested:
- A one-time catch-up vaccination for girls aged 9–14 years.
- Routine vaccination for girls aged 9 years.
Introduced in India in 2008, the vaccine is costly, limiting its accessibility.
Some states like Punjab and Sikkim have incorporated it into their immunisation programmes.

Approved HPV Vaccines in India:

Gardasil (quadrivalent vaccine): Protects against HPV-6, 11, 16, and 18.
Cervarix (bivalent vaccine): Focuses on HPV-16 and 18.
Cervavac (India’s first indigenously developed vaccine): Targets high-risk HPV types 16 and 18, priced at ₹2,000 per dose.
Protects against cancers of the cervix, vagina, vulva, penis, anus, and certain head and neck cancers caused by HPV. Effective when administered before exposure to HPV.
Papumpare district, Arunachal Pradesh: Highest incidence rate in Asia (27.7).
Most cervical cancer cases are diagnosed at advanced stages (60% locally advanced stage).

About Human Papillomavirus (HPV):

It is a common virus with over 100 strains, some of which can lead to cervical cancer and other cancers, as well as genital warts. HPV types 16 and 18 are responsible for around 70% of cervical cancer cases worldwide.

About HPV Vaccine:

The HPV vaccine is designed to prevent infections from high-risk HPV strains linked to cancer. It works best when administered before exposure to the virus, ideally during pre-adolescence (ages 11-13).
“Valent” in HPV Vaccines: The term “valent” refers to the number of different HPV (Human Papillomavirus) strains a vaccine targets. Each type of HPV vaccine is designed to protect against specific strains known to cause cervical cancer and other HPV-related diseases.

Bivalent Vaccine

Targets: HPV types 16 and 18.
Coverage: Provides protection against the two strains responsible for about 70% of cervical cancer cases.
Example: Cervarix.

Quadrivalent Vaccine

Targets: HPV types 6, 11, 16, and 18.
Coverage: In addition to cervical cancer, it protects against strains causing genital warts (types 6 and 11).
Example: Gardasil.

Nonavalent (Nine-valent) Vaccine

Targets: HPV types 6, 11, 16, 18, 31, 33, 45, 52, and 58.
Coverage: Offers the broadest protection, covering about 90% of HPV-related cancers and diseases.
Example: Gardasil 9.

3. Impacts of Rupee Weakening and RBI’s Exchange Rate Policy

Sub: Eco

Sec: External sector

Why in News?

The Indian rupee recently depreciated significantly, reaching a record low of ₹86.70 per dollar.
The Reserve Bank of India (RBI) has reverted to its managed-floating exchange rate regime, allowing controlled depreciation to address capital outflows and rising import costs.
Persistent structural issues, including real exchange rate appreciation and domestic inflation, have complicated recovery efforts.

Context:

The sharp devaluation of the rupee raises concerns about inflation, export competitiveness, and macroeconomic stability. The RBI’s policies and structural constraints in the economy have shaped recent exchange rate movements.

Key Points

Recent Trends in Rupee Depreciation

The rupee hit a historic low of ₹86.70/USD amid rising crude oil prices and a worsening current account deficit.
The current depreciation is driven by:
- Capital outflows due to rising interest rates globally.
- Higher import costs, especially for crude oil and essential raw materials.
- RBI’s shift back to a managed-floating exchange rate policy after a brief fixed exchange rate-like stance post-COVID.

Implications of Rupee Depreciation

Positive Effects:
- Boost to Export Competitiveness:
  - Depreciation makes Indian goods cheaper globally, potentially improving net exports.
- Support for Domestic Production:
  - Cheaper rupee could increase demand for domestically produced goods.
Adverse Effects:
- Inflationary Pressures:
  - Higher costs for imports (e.g., crude oil, raw materials) lead to rising domestic prices.
- Real Exchange Rate Appreciation:
  - Despite nominal depreciation, rising domestic prices have made Indian goods costlier globally, limiting export benefits.
Macroeconomic Instability:
- Widening current account deficit (CAD) and declining forex reserves exert pressure on India’s balance of payments (BoP).

India’s Exchange Rate Policy

Managed-Floating Exchange Rate Regime:
- RBI allows controlled currency depreciation or appreciation based on demand-supply dynamics in the foreign exchange market.
Key Approaches follows by RBI:
- During excess demand: RBI devalues the rupee and sells forex reserves.
- During excess supply: RBI accumulates reserves while resisting rupee appreciation to maintain export competitiveness.

Structural Constraints Affecting the Rupee

Divergence Between NEER and REER:
- Since 2019, Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER) have diverged.
- This divergence has reduced the positive impact of nominal rupee depreciation on exports.
Rising Domestic Markups:
- Firms have increased markups (price over variable cost) to maintain profitability, further inflating domestic prices.

Policy Recommendations

Short-term Measures:
- Stabilize inflation by controlling costs of essential imports.
- Maintain adequate forex reserves to ensure exchange rate stability.
Medium to Long-term Reforms:
- Promote trade in local currencies (e.g., INR) through initiatives like Special Rupee Vostro Accounts (SRVA).
- Focus on export diversification to reduce dependency on volatile markets.
- Align nominal and real exchange rates by controlling inflation through domestic structural reforms.

Real Effective Exchange Rate (REER) and Nominal Effective Exchange Rate (NEER)

The Real Effective Exchange Rate (REER) and Nominal Effective Exchange Rate (NEER) are crucial indicators used to evaluate a country’s currency competitiveness and trade dynamics.

NEER and REER: Definitions

NEER (Nominal Effective Exchange Rate):
- Reflects the weighted average of a currency’s bilateral exchange rates with multiple trading partner currencies.
- Does not adjust for inflation or price level differences.
- Indicates nominal appreciation or depreciation of the currency.
REER (Real Effective Exchange Rate):
- Adjusted version of NEER, accounting for relative price levels or inflation between domestic and foreign economies.
- Provides a purchasing power parity (PPP)-adjusted measure of a currency’s competitiveness.

Economic Implications

Overvaluation (REER > 100):
- Makes exports less competitive globally and encourages imports due to cheaper prices.

4. RBI Announces Measures to Boost Cross-Border Transactions in Rupee

Sub: Eco

Sec: External sector

Why in News?

The Reserve Bank of India (RBI) has announced liberalised norms to encourage the use of the Indian Rupee (INR) for cross-border transactions, coinciding with the rupee’s depreciation to a record low of ₹86.70/USD.

Context:

These steps aim to strengthen trade using local currencies, reduce dependence on USD, and promote the rupee’s acceptance in global markets.
The move is part of India’s broader strategy to enhance bilateral trade agreements with various nations, including UAE, Indonesia, and the Maldives.

Key Takeaways:

Agreements with Other Nations:

RBI has signed MoUs with the central banks of the UAE, Indonesia, and Maldives to facilitate cross-border trade in local currencies, including the INR.

Special Rupee Vostro Account (SRVA):

Introduced in July 2022 to support trade in INR.
Several foreign banks have opened SRVAs with Indian banks, allowing seamless settlement of international trade.

Expanded Use of INR for Non-Residents:

Overseas branches of authorized dealer banks can now open INR accounts for non-residents to settle:
- Permissible current and capital account transactions with Indian residents.
- Transactions between non-residents using balances in Special Non-Resident Rupee Accounts or SRVAs.

Non-Resident Investment Opportunities:

Non-residents can now use INR balances for:
- Foreign Direct Investment (FDI) in non-debt instruments.
- Other permissible foreign investments.

Flexibility for Indian Exporters:

Indian exporters are now permitted to open foreign currency accounts overseas for trade settlement, offering greater flexibility in managing trade payments.

Significance of the Move:

Promotes Rupee Internationalisation: Encourages the use of INR in global trade, reducing dependency on USD.
Enhances Trade Relations: Supports India’s bilateral trade agreements by facilitating smoother currency exchange mechanisms.
Boosts Confidence in INR: Addresses the challenges posed by rupee depreciation and promotes its acceptability for international investments.
Simplifies Trade Operations: Offers Indian exporters and non-residents new avenues for efficient trade settlements.

Special Rupee Vostro Account (SRVA)

The Special Rupee Vostro Account (SRVA) is an arrangement introduced to facilitate international trade using the Indian Rupee (INR) instead of relying solely on freely convertible currencies like the US Dollar or Euro.
This system complements the existing trade settlement mechanisms and reduces dependence on hard currencies.

5. Why Protesting Farmers in Punjab Want India to Withdraw from WTO

Sub: Eco

Sec: External sector

Why in News?

Farmers protesting at Punjab and Haryana borders demand India’s withdrawal from the WTO and suspension of agreements under the Agreement on Agriculture (AoA).
They argue that WTO policies are biased against developing countries, threatening small farmers, food security, and livelihoods in India.

Context:

Farmers in Punjab and other parts of India view the WTO’s agricultural rules as unfair, particularly its restrictions on Minimum Support Price (MSP), subsidies, and the Public Distribution System (PDS).
Their concerns highlight the adverse effects of global trade liberalization on small and marginal farmers.

Key Takeaways

Farmers’ Demands and Concerns

MSP Legalization: Farmers demand MSP as a legal right, which contradicts WTO rules limiting domestic support to prevent trade distortion.
Withdrawal from WTO: To ensure the government can provide unrestricted MSP and subsidies.
Cancellation of FTAs: Farmers oppose trade agreements that lower tariffs and increase competition from cheap imports.

Issues with WTO Rules:

WTO mandates domestic support limits, restricting government subsidies for agriculture.
Excessive subsidies are considered to distort international trade, leading to pressure on India to comply.
India has committed not to fix MSP in violation of WTO rules, further intensifying farmers’ concerns.

Risks Highlighted by Farmers:

Loss of Livelihoods: Cheap imports due to FTAs and WTO rules undercut Indian farmers’ incomes.
Food Security Threat: Farmers fear increased dependence on global markets and reduced domestic production due to lack of support.
Developed Countries’ Advantage: Developed nations provide large subsidies under different classifications while pressuring developing countries like India to cut subsidies.
India lacks Special Safeguard Measures (SSG) to counter import surges, further disadvantaging its farmers.

India’s Agrarian Economy at Risk

Punjab’s agriculture is heavily reliant on wheat and paddy, with around 90% of Rabi and Kharif crops procured under MSP.
Public procurement system feeds into the central pool, forming the backbone of the state’s economy. WTO restrictions on subsidies and public procurement pose a significant threat to farmers’ livelihoods.
86% of India’s agricultural population comprises small and marginal farmers.
Challenges include:
- Lack of access to modern technology, markets, and finance.
- Exposure to cheap imports due to liberalized global trade under WTO rules, destabilizing rural economies.

Agreement on Agriculture (AoA) under the WTO

The Agreement on Agriculture (AoA) under the WTO is a comprehensive treaty focused on reforming agricultural trade by reducing subsidies, enhancing market access, and disciplining export subsidies. Here is an organized overview:

Overview of AoA

Establishment: Negotiated during the Uruguay Round (1986) and ratified in 1994 at Marrakesh. Came into effect in 1995.
Objective: Promote fair competition, reduce trade-distorting practices, and ensure better access to markets for agricultural products.
Significance for India: AoA provisions impact India’s food security programs, minimum support prices (MSP), and public procurement systems, directly affecting millions of farmers.

Pillars of AoA

Market Access:
- Aim: Eliminate non-tariff barriers by converting them into tariffs (tariffication).
- Reduction commitments:
  - Developed countries: 36% (value) over 6 years.
  - Developing countries: 24% (value) over 10 years.
  - Least Developed Countries (LDCs): Exempt.
- Special Provisions:
  - Developing nations with balance-of-payment issues could offer tariff ceilings instead of tariffication.
Domestic Support:
- Subsidy Classification:
  - Amber Box: Trade-distorting subsidies subject to reduction commitments (e.g., MSP, input subsidies).
  - Blue Box: Subsidies aimed at production limitation, exempt from reduction.
  - Green Box: Minimal trade-distorting subsidies, like environmental protection and research, exempt from caps.
India’s Concerns:
- The outdated reference price (based on 1986-88 levels) inflates subsidy levels due to inflation, causing potential WTO compliance issues.
- India’s extensive MSP program risks breaching the 10% de minimis cap for developing countries.
Export Subsidies:
- Reduction commitments:
  - Developed countries: 36% (value) and 21% (volume) over 6 years.
  - Developing countries: 24% (value) and 14% (volume) over 10 years.
- India’s Limitation: India, not having used export subsidies historically, is restricted from introducing them, unlike advanced economies.

Peace Clause (2013, Bali Ministerial Conference)

Provides protection to developing countries like India from legal challenges if subsidy limits for public stockholding programs are breached.
However, this is a temporary solution, and negotiations for a permanent resolution are ongoing.

Special Safeguard Mechanism (SSM):

Developing nations, including India, have sought an SSM to impose import restrictions during price crashes or surges in imports.
India argues that lack of such measures leads to destabilization of local markets and threatens small-scale agricultural livelihoods.

6. China’s Trade Surplus Nears $1 Trillion: Key Takeaways from export surge

Sub: Eco

Sec: External sector

Why in News?

China reported a record trade surplus of $992.2 billion for 2024, driven by robust export growth despite global economic challenges.
The report comes just before Trump assumes office as US President, raising concerns about potential trade tensions.

Context:

China’s trade figures highlight its reliance on exports as the key growth driver while domestic demand recovery remains weak. Beijing may introduce further monetary easing and fiscal stimulus to counter external challenges and support economic stability.

Key Takeaways from China’s Trade Data

Record Trade Surplus in 2024:

Exports: Grew 5.9% YoY to $3.58 trillion.
Imports: Increased marginally by 1.1% YoY to $2.59 trillion.
Result: A record trade surplus of $992.2 billion, underscoring the export-driven nature of China’s economy.

Triggers Behind Export Surge:

Export acceleration in December: Likely driven by:
- Chinese New Year effects.
- Anticipation of tariff hikes by the incoming US administration.
- High-value exports: Electric vehicles, batteries, and solar panels were major contributors.
- Weaker renminbi: Boosted export competitiveness and disincentivized imports.

Import Drivers:

Increased purchases of iron ore and copper, potentially part of a “buy low” strategy amidst falling commodity prices.
Agricultural imports: Record soybean imports from the US as Chinese buyers stocked up ahead of potential trade restrictions.

Domestic Challenges:

The trade surplus masks underlying weaknesses in China’s domestic economy:
- Property sector crisis.
- Overcapacity in industries.
- Tepid consumer demand.
- Rising government debt.
- Policymakers aim to achieve around 5% GDP growth in 2025, amid external risks.

How the Trade Situation could play out in 2025

US Trade Tensions:

Trump Administration Impact:
- Likely introduction of higher tariffs on Chinese exports, triggering a potential trade war.
- Exporters rushed shipments in December 2024 to pre-empt tariff hikes.
- EU Tariffs: Ongoing disputes over 45% tariffs on Chinese electric vehicles remain unresolved.

Domestic Policy Response:

To counter challenges, Beijing may:
- Introduce additional stimulus packages to spur domestic demand.
- Implement monetary easing and accommodative fiscal policies to stabilize growth.

Conclusion:

China’s record trade surplus showcases its dominance in global exports, especially in high-value sectors like electric vehicles and solar energy products.

However, weak domestic demand and escalating trade tensions with the US and EU could test Beijing’s ability to sustain growth in 2025. Policymakers are likely to deploy additional fiscal and monetary measures to offset these challenges.

7. Centre announces constitution of Eighth Pay Commission

Sub: Polity

Sec: National body

Context :- The Union Cabinet approved the implementation of the 8th Pay Commission to revise salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners. The 8th Pay Commission will not only lead to increased salaries of Central government employees but also have revised Dearness Allowance (DA).

What is Pay Commision ?

A Pay Commission is a government-established body tasked with reviewing and recommending changes in the salary structure, allowances, and other benefits of central government employees and pensioners.
It aims to ensure fair compensation in line with economic conditions, inflation, and living standards.
It is not mandatory for the government to accept the recommendations of the pay commission. The government may choose to accept or reject the recommendations.

Mandate of a Pay Commission

The primary mandate of a Pay Commission includes:

Reviewing the salary structure: Examining the current pay scales and recommending changes to make them competitive and equitable.
Assessing allowances and benefits: Evaluating allowances like house rent, travel, and medical facilities and recommending revisions.
Considering pension reforms: Suggesting improvements in pensions for retired employees.
Analyzing disparities: Addressing anomalies in pay across various cadres and departments.
Consider the rationalization and simplification of the pay structure to ensure its coherence and ease of implementation.

Pay Commissions in India

Since India’s independence, seven Pay Commissions have been constituted to date.

1st Pay Commission (1946):
- Chairman: Srinivasa Varadacharia
- Established before independence; recommendations implemented in 1947.Introduced the concept of the “living wage”
2nd Pay Commission (1957):
- Chairman: Jaganath Das
- Addressed disparities and inflation post-independence.
3rd Pay Commission (1973):
- Chairman: Raghubir Dayal
- Focused on equitable distribution of pay.
4th Pay Commission (1986):
- Chairman: P.N. Singhal
- Focused on reducing disparities in salaries across rank and Introduced a performance-linked pay structure.
5th Pay Commission (1996):
- Chairman: Justice S. Ratnavel Pandian
- Recommended substantial hikes in government salaries.
6th Pay Commission (2006):
- Chairman: Justice B.N. Srikrishna
- Introduced Pay Bands and Grade Pay system.
7th Pay Commission (2016):
- Chairman: Justice A K Mathur
- Recommended abolishing the Pay Band and Grade Pay system, replacing it with a new pay matrix based on Aykroyd Formula.

8. New app to promote battlefield tourism

Sub : Schemes

Sub : Tourism

Context:

A new initiative called the “Bharat Ranbhoomi Darshan” app has been introduced to allow civilians to visit and explore significant battlefields along India’s borders.
The app was launched on January 15, 2025, coinciding with Army Day

Details about the initiative:

This initiative is the result of a collaboration between the Ministries of Defence and Tourism, and the Indian Army.
The Bharat Ranbhoomi Darshan website will be a one-stop destination for the visitors to make all necessary arrangements for their travel planning, including how to apply for permits for some of these places
The Bharat Ranbhoomi Darshan website will feature details on various battlefields and border areas, offering virtual tours, historical narratives, and interactive content.

Objective of the Initiative:

The app and associated website aim to provide access to various battlefields and military locations across India, offering citizens an opportunity to learn about and experience India’s military history.
The project aims to transform these areas into tourist destinations, allowing citizens to experience the bravery of the Indian Army firsthand.

Accessible Locations:

Locations of the 1962 Sino-Indian War, 1971 India-Pakistan War and the Kargil war of 1999
The Siachen Glacier base camp
Doklam, a site of recent conflict in 2017, which exists at the tri-junction between India, Bhutan and China.
The Galwan Valley site, where a violent clash occurred between Indian and Chinese forces in 2020.
Areas now accessible to tourists under the plan include Kibithoo and Bum La Pass in Arunachal Pradesh, Rezang La and Pangong Tso in Ladakh, besides Doklam.