Daily Prelims Notes 20 March 2024

March 20, 2024
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

20 March 2024

Table Of Contents

1. IPEF: India to join US-led co-operative work programme on carbon market

Subject: Environment

Section: Int Conventions

Context:

India has decided to participate in at least one of the four cooperative work programmes under the US-led Indo-Pacific Economic Framework (IPEF), specifically focusing on carbon market activities.

Details:

The Ministry of Power and the Bureau of Energy Efficiency will lead India’s involvement in this programme.
Additionally, India is considering joining initiatives related to clean electricity and sustainable aviation fuel but will make a final decision after a thorough evaluation.

Indo-Pacific Economic Framework (IPEF):

Launched by US President Joe Biden in May 2022, the IPEF aims to enhance regional cooperation among 14 partners in the Indo-Pacific region.
- The 14 members of the IPEF are- Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, The Philippines, Singapore, Thailand, Vietnam, the USA
The IPEF is not a Free Trade Agreement(FTA) but allows members to negotiate the parts they want to.
The framework’s objectives include establishing common rules and standards across four pillars: digital trade connectivity, resilient supply chains, clean energy, and fair trade.
Notably, the IPEF does not involve tariff cuts.
India has chosen to participate in three pillars, excluding the trade pillar.
India’s Focus on Carbon Markets:
- India is actively developing its carbon markets and recently amended its carbon credits trading scheme to facilitate independent standards for carbon trading and allow non-obligated entities to generate carbon credits.
- Through its participation in the IPEF’s carbon markets work programme, India aims to learn from other countries’ experiences and explore the potential for standardising and integrating carbon markets internationally.

India’s involvement in other programmes:

India is evaluating its involvement in cooperative work programmes on clean electricity, led by Japan, and sustainable aviation fuel, initiated by Singapore.
Decisions on joining these programmes will consider their relevance to India’s national interests.
The work programme on ‘just transition’ launched by the Philippines is also under consideration by many countries, focusing on workforce development.

Source: TH BL

2. Bihar’s Begusarai, ‘world’s most polluted city in 2023’; India ranks 3rd globally: Swiss report

Subject: Environment

Section: Pollution

The World Air Quality Report 2023:

The report, produced by the Swiss organization IQAir, marks its 6th annual publication, offering insights into global air pollution levels.
It emphasizes the need for local, national, and international efforts to address air quality issues, manage transboundary haze, and reduce reliance on combustion energy sources.
Key Findings:
- Begusarai in Bihar was named the most polluted metropolitan area in 2023.
- Delhi was recognized as the capital city with the poorest air quality globally.
- India ranked as the third worst country out of 134 in terms of average annual PM2.5 concentration, following Bangladesh (1st) and Pakistan (2nd).
India’s Air Quality:
- Approximately 96% of India’s population lives in areas where air quality is seven times worse than WHO guidelines.
Global Air Pollution status:
- About 92.5% of the 7,812 locations analyzed across 134 countries exceeded WHO’s PM2.5 air quality guidelines.
- Columbus, Ohio, and Beloit in Wisconsin, were highlighted as polluted cities in the United States, with Las Vegas being the cleanest major US city.
- Africa is significantly underrepresented in air quality data, lacking information for a third of its population.
- Canada was identified for the first time as the most polluted country in Northern America.
- Seven countries (Australia, Estonia, Finland, Grenada, Iceland, Mauritius, and New Zealand) met the WHO’s PM2.5 annual guideline.

About PM2.5:

PM2.5 refers to particulate matter that is 2.5 microns in diameter, posing significant health risks such as heart attacks, strokes, and oxidative stress even at modest concentrations.
The WHO revised its PM2.5 guideline to recommend a yearly average of 5 µg/m3 or less, tightening from the previous guideline of 10 µg/m3.

Source: HT

3. Why the B200 Blackwell chip will consolidate Nvidia’s stranglehold over the AI market

Subject: Science and tech

Section: Awareness in computer and IT

Nvidia’s New AI Chip Announcement- B200 ‘Blackwell’:

Nvidia Corporation’s CEO, Jensen Huang, announced the new AI chip at their annual developer conference in San Jose, California.
The new chip, named B200 ‘Blackwell’, outperforms its predecessor, the H100 ‘Hopper’, by completing some computational tasks 30 times faster.
The Blackwell GPU contains 208 billion transistors, significantly more than the H100’s 80 billion, enhancing Nvidia’s GPU offerings.
Performance Enhancements:
- The Blackwell chip is twice as powerful in training AI models and has five times the capability in inference tasks, reducing the resources needed for tasks like training GPT models from 8,000 Hopper GPUs to 2,000 Blackwell GPUs and cutting power consumption from 15 megawatts to four megawatts.
- Major companies like Google, Amazon, Microsoft, and OpenAI plan to use the new chip in cloud-computing services and AI products.
- Nvidia, already the third-most valuable US company, saw its stock surge nearly 250% in the past year, becoming the world’s most valuable chipmaker.

Nvidia’s Competitive Edge:

Full Stack Solutions: Nvidia’s success is attributed to its proprietary software and comprehensive systems that optimize GPU features for AI, positioning it ahead in the AI chip race.
Overall, Nvidia’s announcement of the B200 ‘Blackwell’ AI chip marks a significant milestone in computational efficiency and AI capabilities, reinforcing the company’s leadership in the global GPU market and indicating a promising future for AI technology development and adoption.

GPU Demand and Supply:

The AI boom has significantly increased demand for GPUs, which are crucial for processing large volumes of data in AI models.
Nvidia faces a virtual monopoly in the GPU market, leading to order backlogs. However, the B200 promises to alleviate some of these shortages.
Moody’s 2024 AI Outlook: Anticipates increased AI spending and adoption, with a gradual improvement in the supply of high-performance GPUs.
Nvidia’s dominance in the GPU market is expected to continue, with GPUs becoming increasingly central to AI applications, shifting the hardware equation from CPUs to GPUs.

Source: IE

4. How House terms and poll schedules are decided

Subject: Polity

Section: Elections

Context:

The Election Commission of India (ECI) announced a schedule adjustment for the elections to the Lok Sabha and four state Assemblies, moving the vote counting in Sikkim and Arunachal Pradesh to June 2, from the initially scheduled June 4.
This change was made because the terms of the Legislative Assemblies in these states expire on June 2, 2024.

Original Schedule:

Initially, Assembly elections in Arunachal Pradesh and Sikkim were set to begin with notifications on March 20, nominations till March 27, withdrawals by March 30, and voting on April 19.
Lok Sabha elections were planned in seven phases from April 19 to June 1, with a single-day election in 22 states and Union Territories, including Arunachal Pradesh and Sikkim. The counting was originally set for June 4 for all seats.
Reason for Change:
- The ECI realized post-announcement that the assemblies’ terms ended on June 2, necessitating the completion of the election process before this date.

Constitutional Terms for Assemblies and Lok Sabha:

The Constitution mandates that state Assemblies and Lok Sabha last five years from their first sitting.
For Lok Sabha, Article 83(2) states: “The House of the People, unless sooner dissolved, shall continue for five years from the date appointed for its first meeting and no longer and the expiration of the said period of five years shall operate as a dissolution of the House.”
For Legislative Assemblies, Article 172(1) states: “Every Legislative Assembly of every State, unless sooner dissolved, shall continue for five years from the date appointed for its first meeting and no longer and the expiration of the said period of five years shall operate as a dissolution of the Assembly.”
- The term of the Assembly “may, while a Proclamation of Emergency is in operation, be extended by Parliament.. for a period not exceeding one year at a time and not extending in any case beyond a period of six months after the Proclamation has ceased to operate”.

Application to Sikkim and Arunachal Pradesh:

The current Assemblies of Sikkim and Arunachal Pradesh first met on June 3, 2019,ending their term on June 2, 2024.
Officials aim to complete counting and announce results before midnight of June 2.

Election Schedule Considerations:

The ECI considers various factors like weather, festivals, exams, and logistical requirements for security and polling stations.
The expiration date of the legislature’s term is a primary consideration, known five years in advance.

Previous Instances and Adjustments:

The ECl has in the past drawn up schedules delinking the counting in a particular state from the counting in the rest of the country.
There have been adjustments to accommodate state-specific circumstances, such as in 2004 for Andhra Pradesh and in 2023 for Mizoram, to respect local practices and significant dates.

Source: IE

5. T.N. start-up to launch its first rocket on Friday

Subject: Science and tech

Section: Space sector

Agnibaan Sub Orbital Technology Demonstrator (SOrTeD):

Tamil Nadu’s space start-up, Agnikul Cosmos Private Limited, headquartered in Chennai, is scheduled to launch its first rocket, Agnibaan Sub Orbital Technology Demonstrator (SOrTeD), from Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh, on March 22.
Mission Goals: The mission aims to validate various systems necessary for orbital flight, except stage separation, with plans for post-flight analysis to prepare for future orbital launches.

Details:

It marks India’s first rocket launch from a private launchpad.
It will be powered by India’s first semi-cryogenic engine.
The launch will feature the world’s first single-piece 3D printed engine, which is designed and built indigenously.
This launch represents:
India’s first liquid oxygen-kerosene rocket flight.
The first use of a patented, integrated single-piece 3D printed rocket.
A sub-orbital launch with advanced features like closed-loop feedback guidance and control with a gimballed thrust vector control, requiring flight termination systems and extensive safety preparations.

About Agnikul Cosmos:

Founded in 2017 by Srinath Ravichandran, Moin SPM, and Satya Chakravarthy, Agnikul Cosmos is the first company to sign an agreement with ISRO under the IN-SPACe initiative in December 2020, allowing it access to ISRO’s expertise and facilities.

Tamil Nadu’s Role in Space Sector:

Tamil Nadu has significantly contributed to the space sector, with numerous companies and MSMEs supplying parts for major ISRO projects like Chandrayaan-3.
Entities like Data Patterns and L&T have established strong presences in the state, contributing to ISRO’s missions.
TIDCO is enhancing the state’s space sector by establishing two new space parks in Kulasekarapattinam, focusing on space-related manufacturing and propellant production.

Mission Prarambh- Vikram-S rocket:

In 2022,India’s first privately developed rocket was launched named Vikram-S, by Skyroot Aerospace, marking a growing trend of private sector involvement in India’s space endeavours. This mission was titled “Prarambh”.

Source: TH

6. India’s sharks and rays: an ancient species on the brink of extinction

Subject: Environment

Section: Species in news

Context:

A report by TRAFFIC and WWF-India have highlighted rampant shark killing and trade in eastern India, especially West Bengal, despite regional underrepresentation in seizure data.

Details:

The TRAFFIC-WWF report, titled “Netted in illegal wildlife trade: Sharks of India,” indicates nearly 16,000 kg of shark fins were seized from January 2010 to December 2022, alongside significant quantities of shark cartilage and teeth, with the illegal trade being much larger than seizures suggest.
Northern West Bengal and adjacent Northeast India areas serve as major trafficking routes for shark body parts and other wildlife products.
The investigation also revealed that Digha, a coastal resort town, is a hotbed for shark killing and trafficking, with monthly averages of 1,500 to 6,000 kg of sharks being trafficked, mainly to Kerala for their fins.
Tamil Nadu leads in seizure incidents, with an estimated actual trade volume 6 to 8 times higher.
The Wildlife Crime Control Bureau and West Bengal’s forest department, while less aware, recognize the role of West Bengal and northeastern states in trafficking to international markets, notably China.
Despite India’s ban on shark finning and trade, enforcement appears lax, with significant seizures and international demand driving the illegal trade.
Shark products are used in cuisine, cosmetics, medicine, and as curios, emphasizing the need for stronger regulatory measures and conservation efforts to protect sharks and their ecosystem roles.

India second largest shark fishing nation in the world:

India ranks as the second largest shark fishing nation globally, following Indonesia, primarily due to bycatch in fisheries targeting other species and habitat disruptions from coastal development.
Between 1985 and 2013,India’s annual shark catch remained between 50,000 and 70,000 tonnes, despite a 64% decline in the proportion of sharks to total fishery catch.
This indicates a significant decrease in shark populations relative to other fish, especially on the west coast, which accounts for nearly 70% of India’s shark fishery.
Notably, the collapse of fisheries can occur abruptly, as seen with the deep sea shark fishery around the Maldives, which vanished in the early 2000s after being depleted.
India then became a supplier of liver oil from deep sea sharks like gulper sharks until this fishery too collapsed in 2009 due to diminishing catches and smaller shark sizes.
Similarly, Tamil Nadu has witnessed an 86% decline in catches of rays such as guitar fish and wedge fishes.
These rapid population declines are attributed to the slow growth, late sexual maturity, and infrequent reproduction of these species, leading to long recovery times or non-recovery even after fishing ceases.

Protection of sharks:

The first shark species (and consequently the first fish species) to ever be protected in India was the whale shark which was placed under the Schedule 1 species list of the Wildlife (Protection) Act in 2001.
Nine more species were added to this list, including the Ganges river shark (one of few freshwater and estuarine sharks in the world), the Pondicherry shark which may already be extinct and the giant guitarfish, an exceedingly rare species that is sought after for shark fin soup in Southeast Asia and China.

Source: Mongabay

7. Bank of Japan Raises Interest Rates After 17 Years

Subject: Economy

Section: Monetary Policy

In a significant move, Japan’s central bank, the Bank of Japan (BOJ), has raised its benchmark interest rate for the first time in 17 years.

Policy Shift:
- The BOJ has ended its policy of negative interest rates, which were implemented to stimulate the economy.
- The lending rate for overnight borrowing by banks has been raised to a range of 0% to 0.1%, marking a departure from the previous rate of minus 0.1%.
End of Ultra-Lax Policy:
- This rate hike signifies a shift away from the ultra-lax monetary policy that has been in place for years.
- The move indicates the BOJ’s confidence in the economy’s recovery and its ability to sustain growth without the need for negative rates.
First Rate Hike in Years:
- The rate hike, effective immediately, is the first of its kind since February 2007.
Impact on Economy:
- The decision to raise interest rates reflects the BOJ’s assessment of the economy’s strength and resilience.
- It suggests a more optimistic outlook for Japan’s economic recovery and the need to adjust monetary policy accordingly.
Market Response:
- The announcement of the rate hike is likely to have implications for financial markets, especially in terms of bond yields and the yen’s exchange rate.
- Investors and analysts will closely monitor how the market responds to this shift in monetary policy.
Forward Guidance:
- The BOJ is expected to provide further guidance on its future monetary policy decisions.
- Clarity on the central bank’s plans for interest rates and asset purchases will be crucial for market participants and economic stakeholders.

Conclusion

Japan’s decision to raise interest rates after nearly two decades marks a significant milestone in its monetary policy. The move away from negative rates signals the BOJ’s confidence in the economy’s recovery and its readiness to adjust policy settings accordingly. The impact of this rate hike will be closely watched by market participants, investors, and policymakers as Japan aims to navigate its post-pandemic economic landscape.

Understanding “Ultra-Lax Monetary Policy”

“Ultra-lax monetary policy” refers to an approach taken by central banks to stimulate economic activity and boost growth by keeping interest rates exceptionally low or even negative.

Negative Interest Rates:
- One key feature of an ultra-lax monetary policy is the use of negative interest rates. Central banks set rates below zero, which means commercial banks are charged for holding excess reserves.
Quantitative Easing (QE):
- Central banks engage in large-scale asset purchases, such as government bonds or mortgage-backed securities, to inject money into the economy.
- The aim is to lower long-term interest rates, encourage borrowing and investment, and support asset prices.
Goal of Ultra-Lax Policy:
- The primary objective of this policy is to stimulate economic growth, especially during periods of recession or sluggish activity.
- By lowering borrowing costs, central banks aim to encourage businesses to invest, consumers to spend, and lenders to extend credit.
Challenges and Criticisms:
- While ultra-lax monetary policy can provide a boost to the economy, it also comes with risks and challenges.
- There are concerns about its impact on savers and retirees who rely on interest income.
- It may also lead to asset price inflation, creating bubbles in financial markets.
Recent Trends:
- Following the global financial crisis of 2008, many central banks, including the Bank of Japan, European Central Bank, and Federal Reserve, adopted ultra-lax policies.
- These measures were aimed at stabilizing economies, promoting recovery, and warding off deflationary pressures.
Impact on Financial Markets:
- Ultra-lax policies often lead to lower bond yields, higher stock prices, and a weaker currency.
- Financial markets closely monitor central bank announcements and policy changes for signals on future economic conditions.

In summary, ultra-lax monetary policy is an unconventional approach used by central banks to provide stimulus to economies facing challenges such as low growth and deflationary pressures.

8. GeM Encouraging Start-ups and Small Enterprises

Subject: Schemes

Section: Economy

The Government e-Marketplace (GeM), the Union government’s procurement portal, is actively working to promote the participation of start-ups and small enterprises as sellers.

Inclusion of Start-ups:
- Since its inception, almost 23,000 start-ups have registered on the GeM platform.
- GeM has been a successful digital initiative of the Indian government, with the gross merchandise value (GMV) expected to cross the ₹4-lakh crore mark this year, up from ₹422 crore in 2016.
Seller Base:
- GeM boasts a diverse seller base of 21 lakh, including a significant number of small and micro-enterprises.
- The platform caters to 1.5 lakh buyers across all tiers of government – Central, State, and local.
GeM Sahay 2.0:
- GeM is introducing GeM Sahay 2.0, a mobile-based lending platform aimed at supporting start-ups.
- This initiative offers collateral-free loans of up to ₹10 lakh to start-ups and entrepreneurs.
- Loans will be provided at interest rates of up to 10% and will be approved within just 10 minutes.
Market Linkages:
- GeM provides easy market linkages for start-ups, exempting them from certain listing requirements.
- The platform serves as a marketplace where start-ups fulfilled 84,000 orders worth ₹9,725 crore in the previous year.
Start-up Runway Initiative:
- GeM’s ‘Start-up Runway’ initiative offers direct visibility to start-ups with the buyers on the public procurement portal.
- This program encourages start-ups to showcase their offerings and engage with potential buyers effectively.

Conclusion

GeM’s efforts to onboard and support start-ups and small enterprises reflect the government’s commitment to promoting entrepreneurship and facilitating business growth.

With GeM Sahay 2.0 offering quick and hassle-free loans, and initiatives like Start-up Runway enhancing visibility, the platform aims to create a conducive environment for start-up success in the public procurement space.

GeM Sahay: Empowering Proprietorships on Government e-Marketplace (GeM)

Introduction:

GeM Sahay is an innovative initiative launched by the Government e-Marketplace (GeM).
It offers a comprehensive financing solution tailored for Proprietorships operating on the GeM platform.

Partnerships:

GeM has collaborated with top financial lending banks to facilitate these loans.
Proprietorships can access loans at the point of order acceptance, ensuring timely financial support.

Registration:

Easy registration process via Udyam and Aadhar, free of charge.
Proprietorships can seamlessly apply for loans with minimal paperwork, enhancing convenience.

Interest Rates:

Loans offered through GeM Sahay come with competitive interest rates.
Proprietorships benefit from favourable terms, making financing more accessible and affordable.

Through GeM Sahay, GeM is poised to transform the financing experience for Proprietorships, fostering a conducive environment for business expansion and success. This initiative reflects GeM’s dedication to innovation, efficiency, and support for the entrepreneurial ecosystem in India.

GeM Startup Runway Program: Fostering Growth for Startups

The GeM Startup Runway Program is an initiative by the Government e-Marketplace (GeM) to support and promote startups in India.
It aims to provide direct visibility and business opportunities to startups on the GeM platform.
The program is designed to empower startups by offering them a dedicated platform to showcase their products and services.
It facilitates easy access to government buyers and procurement opportunities, accelerating the growth of startups.