Daily Prelims Notes 24 January 2025
- January 24, 2025
- Posted by: OptimizeIAS Team
- Category: DPN
Daily Prelims Notes
24 January 2025
Table Of Contents
- Digital Economy to Constitute a Fifth of Indian GDP by 2030 – ICRIER Report
- Tea Industry Concerns Rise Amidst Surge in Kenyan Imports
- Is France’s influence in West Africa over?
- India’s Journey Towards Ending Tuberculosis (#EndTB)
- The Hidden Dangers of Rhodamine B
- States yet to use ₹70744-cr. funds for welfare of workers
- Is poverty being underestimated in India?
1. Digital Economy to Constitute a Fifth of Indian GDP by 2030 – ICRIER Report
Sub: Eco
Sec: National Income
Why in News?
- The Indian Council for Research on International Economic Relations (ICRIER) has released a report, in collaboration with the Ministry of Electronics and Information Technology, projecting that India’s digital economy will contribute nearly 20% of GDP by 2030, marking the first official attempt to quantify its size.
Context
- India’s rapid digital transformation, fuelled by advancements in ICT infrastructure, increasing internet penetration, and a digital-first approach in banking, education, and services, positions the digital economy as a key driver of national growth.
Key Highlights
- Projections for Digital Economy Growth
- 2022–23: Digital economy constituted 11.74% of national income.
- 2024–25: Projected to grow to 13.42% of GDP.
- 2030: Digital economy expected to account for nearly 20% of GDP.
- Growth rate: Expected to expand twice as fast as the overall economy.
- Framework for Estimation
- The report uses a combined definition from the OECD and ADB, while also including the digital share of traditional industries (e.g., BFSI, trade, education).
- The “traditional ICT” sector remains the largest segment of the digital economy.
- Sectoral Scope
- Focuses on digitally-enabled services across diverse sectors, such as financial services, education, and trade, alongside traditional IT and ICT services.
- Significance of the Study
- Marks the first attempt by the government to quantify the digital economy’s size comprehensively.
- Highlights India’s transition towards becoming a digitally-driven economy, influencing both domestic policy and international economic strategies.
Implications of the Report
- Economic Boost:
- Establishes the digital economy as a key driver of GDP growth, showcasing India’s readiness for a technology-led transformation.
- Policy Framing:
- Provides a data-driven framework for policymakers to channel investments and incentives toward expanding the digital ecosystem.
- Global Competitiveness:
- Reinforces India’s position as a global hub for digital innovation, with increased scope for attracting foreign investment in ICT and related sectors.
Conclusion
- ICRIER’s report underscores the vital role of the digital economy in India’s growth story, with its share projected to almost double by 2030. This comprehensive quantification sets the stage for accelerated digital inclusion, policy reforms, and infrastructure development, ensuring India capitalizes on its digital advantage.
2. Tea Industry Concerns Rise Amidst Surge in Kenyan Imports
Sub: Eco
Sec: External sector
Why in News?
- India, the second-largest tea producer globally, has seen a massive 288% increase in tea imports from Kenya in 2024. This surge has raised alarms among domestic producers already struggling with oversupply and stagnant prices.
Context
- India’s tea industry is facing dual challenges: a significant increase in imports from Kenya and oversupply issues at home, despite a drop in domestic production in 2024. The trend threatens the stability of Indian tea prices and branding.
Key Highlights
- Kenyan Tea Imports Surge
- Kenyan tea exports to India increased from 3.53 million kg (Jan-Oct 2023) to 13.71 million kg (Jan-Oct 2024) — a 288% rise, making India, Kenya’s largest importer.
- India’s Domestic Tea Landscape
- India’s domestic production dropped by over 50 million kg in 2024, with Assam alone losing 20 million kg due to unfavourable conditions.
- Despite production challenges, Indian tea exports rose by 13%, increasing from 184.46 million kg (Jan-Oct 2023) to 209.14 million kg (Jan-Oct 2024).
- Concerns for Local Producers
- Oversupply and imports have kept domestic tea prices in check, adding financial strain on local producers.
- Kenyan teas, often cheaper and lower-quality, are being blended and re-exported as Indian teas, potentially harming the authenticity of Indian brands.
- Imports from other countries like Iran and Vietnam have further compounded these concerns.
- Industry Reaction
- Domestic producers have raised alarms, emphasizing the need for better import regulations and measures to preserve the reputation of Indian teas.
Implications
- Impact on Indian Tea Industry
- Increased imports, coupled with blending practices, could dilute the global perception of Indian teas, impacting premium categories like Darjeeling and Assam.
- Oversupply may erode profit margins for domestic producers, affecting livelihoods in tea-growing regions.
- Global Trade Dynamics
- India’s rising imports reflect shifting trade dynamics, with Kenya benefiting from competitive pricing in the global tea market.
- Indian exporters blending Kenyan teas may face long-term reputational risks in international markets.
Conclusion
- The surge in Kenyan tea imports presents a pressing challenge for India’s tea industry, which is already grappling with oversupply and falling domestic production. Strategic measures, including import regulation and brand preservation efforts, are essential to ensure the long-term sustainability of India’s tea sector.
3. Is France’s influence in West Africa over?
Sub: IR
Sec: Places in news
Context:
- Chad, Ivory Coast, and Senegal have requested for the withdrawal of French troops from their territories.
Reasons behind the Withdrawal Requests:
- National Sovereignty:
- Since independence, France maintained economic, political, and military influence over its former colonies through colonial pacts, known as ‘Francafrique.’
- In Senegal and Ivory Coast, French troops have been stationed as part of Operation Barkhane since 2014, while Chad’s defence pact has existed for decades.
- However, the continued presence of French military forces was perceived as a hindrance to national sovereignty.
- Public Discontent with French Presence: French military efforts in West Africa, particularly against insurgent groups linked to the Islamic State and Al-Qaeda, have failed to quell the growing instability, causing public frustration and anti-French sentiments.
- Diversifying International Relationships: Many countries in the region are exploring new alliances, with military regimes in countries like Mali and Niger seeking help from Russian mercenaries, who are seen as offering security without the “baggage” of democratic values.
Implications for African Countries:
- End of France’s Longstanding Influence: The political vacuum left by France’s exit could lead to shifts in power dynamics, with countries exploring other regional or global alliances.
- Continued Instability Despite the Withdrawal: The military-led governments in countries like Mali, Niger, and Burkina Faso, which have embraced Russian mercenaries, have not successfully contained insurgencies.
- Formation of New Alliances: Countries such as Chad, Senegal, and Ivory Coast may align with Mali, Niger, and Burkina Faso in the Alliance of Sahel.
About Chad:
- Chad is a landlocked country is bordered by Libya to the north, Sudan to the east, the Central African Republic to the south, Cameroon to the southwest, Nigeria to the southwest, and Niger to the west.
- Capital: N’Djamena
About Senegal:
- Senegal is the westernmost country in Africa, situated on the Atlantic Ocean coastline.
- It borders Mauritania to the north, Mali to the east, Guinea to the southeast and Guinea-Bissau to the southwest.
- Capital: Dakar
Ivory Coast:
- Ivory Coast, also known as Côte d’Ivoire a West African country bounded to the north by Mali and Burkina Faso, to the east by Ghana, to the south by the Gulf of Guinea, to the southwest by Liberia, and to the northwest by Guinea.
- Capital: Yamoussoukro
4. India’s Journey Towards Ending Tuberculosis (#EndTB)
Sub: Sci
Sec: Health
Why in News
- Tuberculosis (TB) remains a significant public health challenge globally. According to the World Health Organization’s (WHO) Global Tuberculosis Report 2024, TB continues to be the leading infectious disease killer worldwide. India, contributing to 26% of global TB cases, has pledged to eliminate TB by 2025, five years ahead of the global target of 2030.
About Extrapulmonary Tuberculosis (EPTB):
- A form of tuberculosis where the infection occurs outside the lungs, affecting other organs and tissues.
- EPTB accounts for approximately 15–20% of all active TB cases; this proportion increases to over 50% in individuals with HIV.
- More common in immunocompromised individuals, such as those with HIV, and in young children.
- Sites of Infection:
- Tuberculous lymphadenitis (scrofula) is the most frequent form of EPTB, characterized by swollen lymph nodes, typically in the neck.
- Tuberculous pleurisy involves infection of the pleural space, leading to pleural effusion.
- Central Nervous System: Includes tuberculous meningitis, which affects the membranes covering the brain and spinal cord.
- Skeletal System: Pott’s disease refers to TB infection of the spine, leading to vertebral damage.
- Genitourinary System: Involves organs such as the kidneys and reproductive organs; for example, genitourinary tuberculosis.
- Diagnostic Tools:
- Biopsy and Histopathology: Tissue samples can reveal granulomas indicative of TB.
- Molecular Tests: Polymerase chain reaction (PCR) assays detect Mycobacterium tuberculosis DNA.
- Imaging: X-rays, CT scans, or MRIs help identify the extent and location of infection.
- Typically involves a combination of first-line anti-TB drugs (isoniazid, rifampicin, ethambutol, and pyrazinamide) for a minimum of six months.
Cartridge-Based Nucleic Acid Amplification Testing (CBNAAT):
- A rapid molecular diagnostic test to detect Mycobacterium tuberculosis (MTB) and its resistance to rifampicin, a key TB drug.
- Based on Nucleic Acid Amplification Test (NAAT), using GeneXpert machines.
- Provides results in under 2 hours.
- Can detect TB even in cases of low bacterial load.
- Minimal manual intervention reduces human error.
- Detects both pulmonary and extrapulmonary TB.
- Identifies rifampicin resistance.
- Effective in diagnosing TB in HIV-positive patients where smear microscopy has limitations.
- Widely implemented under the National Tuberculosis Elimination Program (NTEP).
National Tuberculosis Elimination Program (NTEP):
- The National Tuberculosis Elimination Programme (NTEP) – Aims to strategically reduce TB burden in India by 2025.
- It was previously known as Revised National Tuberculosis Control Programme (RNTCP).
- The government reached over a billion people in 632 districts/reporting units.
- The National Strategic Plan for TB Elimination – It was launched to achieve the target of ending TB by 2025 in a mission mode.
- It is a multi-pronged approach which aims to detect all TB patients with an emphasis on reaching TB patients seeking care from private providers and undiagnosed TB in high-risk populations
5. The Hidden Dangers of Rhodamine B
Sub: Sci
Sec: Health
Why in News
- Rhodamine B, a synthetic dye used in various industries, has been found in food products, raising significant health concerns. Recent bans in India and stricter global regulations underscore its potential dangers, especially its carcinogenic properties.
Rhodamine B:
- A synthetic dye known for its bright pink hue, used in textiles, paper, and leather industries.
- Valued for its fluorescent properties in research.
- Prolonged exposure can cause DNA damage, mutations, and potentially cancerous growths.
- Studies link Rhodamine B to tumour development in organs such as the liver and bladder.
- Laboratory tests reveal DNA damage and oxidative stress caused by the dye.
- Children, the elderly, and immunocompromised individuals are more susceptible due to their reduced ability to detoxify harmful substances.
- FDA Regulations: Prohibited Rhodamine B in food products for decades.
- European Union: Classified Rhodamine B as a “substance of very high concern.”
- Early 1990s: Banned in cosmetics due to carcinogenic and skin sensitization risks.
- Indian Perspective: Illegally used to enhance the visual appeal of foods, posing significant health risks.
- State-Level Bans:
- Tamil Nadu (February 2024): Banned cotton candy after detecting Rhodamine B in samples.
- Karnataka (March 2024): Prohibited its use in street foods like “Gobi Manchurian” and cotton candy, imposing strict penalties.
- Formation: Rhodamine B is a xanthene dye synthesized chemically through condensation reactions involving phthalic anhydride and diethyl-m-aminophenol.
- Key Features:
- Xanthene Core: Central chromophore responsible for its fluorescent properties.
- Amino Groups: Enhance solubility and reactivity.
- Chloride Ion: Balances the cationic nature of the dye.
6. States yet to use ₹70744-cr. funds for welfare of workers
Sub :Schemes
Sec: Economy
Context:- The Union Labour Ministry said in a Right to Information (RTI) reply that the welfare boards for building and other construction workers of various States have not yet used the cess worth ₹70,744.16 crore they collected from the employers for the welfare of the workers.
About Building and Other Construction Workers (BOCW) Act,1996
- Purpose:
- It aims to regulate the employment, conditions of service, and welfare of construction workers.
- The Act mandates the creation of Construction Workers’ Welfare Boards by State governments to implement welfare measures
- Cess Collection:
- Under the Act, the welfare boards are empowered to levy a cess from employers at a rate between 1% and 2% of the cost of construction incurred by the employer.
- The cess is collected to fund welfare initiatives such as temporary accommodation, drinking water, sanitation facilities, and social security benefits for workers.
- Eligible Beneficiaries:
- As per the provisions, any worker aged between eighteen and sixty years, engaged in building or construction activities for a minimum of ninety days in the preceding twelve months, is eligible for registration as a beneficiary with the State Welfare Boards
Current Status of Cess Collection and Utilization
- Cess Collected and Allocated:
- Since 2005, ₹1,17,507.22 crore has been collected as cess from employers across the country.
- Of this, only ₹67,669.92 crore has been allocated to workers, leaving ₹70,744.16 crore unutilized.
Issues Highlighted in Implementation
- Underutilization of Funds:
- States have spent only a fraction of the funds collected, leaving large amounts unused.
- This has deprived workers of their statutory benefits.
- Cess Evasion:
- Allegations of significant cess evasion by builders and employers.
- Example: Maharashtra’s total cess collected over 19 years suggests construction worth ₹1 lakh crore annually, which is considered an underestimation.
- Lack of Support During COVID-19:
- The exodus of workers during the COVID-19 lockdowns in 2020 highlighted the lack of adequate welfare measures by the Centre and State governments.
7. Is poverty being underestimated in India?
Sub : Eco
Sec: Unemployment and inflation
Context:- Last month, the government released a factsheet on the 2023-24 Household Consumption Expenditure Survey (HCES), which recorded a decline in poverty in urban and rural areas. Over the last few years, policymakers and academics have debated the issues of incomparable data sets, the unavailability of data, and the definition of an adequate consumption basket to determine a poverty line.
Poverty Estimation in India:
Committees and Methodologies to Determine Poverty in India
- Y.K. Alagh Committee (1979)
- Methodology: Defined the poverty line based on the minimum calorie intake required for rural and urban areas.
- Lakdawala Committee (1993)
- Methodology: Used state-specific poverty lines and price indices to estimate poverty.
- Tendulkar Committee (2009)
- Focus shifted from calorie consumption to broader spending patterns.
- Methodology: Adopted the mixed reference period (MRP) to consider expenditure on food and non-food items.
- Rangarajan Committee (2014)
- Proposed a new poverty line with higher thresholds.
- Methodology: Included modified consumption baskets to better reflect changes in living standards.
- Multidimensional Poverty Index (Introduced by NITI Aayog, 2021)
- Methodology: Based on 12 indicators, including access to bank accounts and maternal health (broader than the UNDP’s 10 indicators).
Improvement in Methodology: URP to MRP and MMRP
- The Uniform Reference Period (URP) involved a 30-day recall period for all items.
- The Mixed Reference Period (MRP) introduced a combination of recall periods: 30 days for food and 365 days for non-food items, allowing better tracking of spending patterns.
- The Modified Mixed Reference Period (MMRP) further refined this by including a seven-day recall period for certain food items, improving the accuracy of expenditure data.
- Recent Developments: The NSSO has begun visiting households in multiple sittings, enabling respondents to recall expenditures more accurately and improving data reliability.
Recent Decline in Poverty
- The 2023-24 Household Consumption Expenditure Survey (HCES) factsheet reported a sharp decline in poverty.
- Estimations show a decrease of 17-18% in poverty levels since 2011-12.
- Estimates for poverty in 2022-23 using the Rangarajan line were close to 10%.
- High GDP growth, flagship government programs, and improved public delivery systems have contributed to poverty reduction.
- The National Food Security Act and other interventions play a crucial role in sustaining low poverty levels
Urban vs. Rural Poverty
- According to HCES, the gap between rural and urban consumption is narrowing, with rural consumption patterns diversifying.
- However, the classification of rural areas is based on Census data (2011), so a significant portion of the rural areas is basically urban or peri-urban in character.