Daily Prelims Notes 25 September 2024

Daily Prelims Notes

25 September 2024

Table Of Contents

1. Good beginning, says India on UNSC reform document
2. China probes U.S. group over ‘boycott’ of Xinjiang cotton
3. Tuvalu’s Fight to Preserve Maritime Boundaries Amid Rising Sea Levels
4. A smuggler-turned-forest protector bags prestigious award
5. Fashion suppliers want brands to help with EU green regulations
6. Centre’s pro-farmer turn in edible oils
7. India’s greenhouse gas emissions increase since 2021
8. Panel set up to develop repairability index
9. Indian Steelmakers Demand Protection from Rising Chinese Imports
10. Bank Bond Issuances Set for Record High in FY 2025
11. Is BMI Losing Its Relevance? The Rise of Body Roundness Index (BRI)
12. Understanding Scientific Retractions and Their Importance

1. Good beginning, says India on UNSC reform document

Sub: IR

Sec: Int org

Context:

• World leaders adopted by consensus the “Pact of the Future”, promising to reform the Security Council, recognising the urgent need to make it more representative, inclusive, transparent, efficient, effective, democratic and accountable”.
• This is for the first time a UN summit document includes a detailed paragraph on Security Council reform. India has welcomed the move, calling it a good beginning.
• India anticipates eventual text-based negotiations on reforms moving forward.

Pact of the Future:

• The United Nations General Assembly (UNGA) adopted the pact without a vote at the Summit of the Future. The agreement came after some nine months of negotiations.
• Russia and Iran were among seven nations to oppose the pact, but they failed to prevent the document from proceeding during the summit.
• The Pact covers abroad range of issues including peace and security, sustainable development, climate change, digital cooperation, human rights, gender, youth and future generations, and the transformation of global governance.
• It includes a pledge to accelerate efforts towards achieving the UN’s Sustainable Development Goals (SDGs) and the Paris Agreement commitments on climate change.
• It speaks of addressing the root causes of conflicts and accelerating commitments on human rights, including women’s rights.

Annexure to the Pact:

• Global Digital Compact: dealing with regulating artificial intelligence (AI).
• Declaration on Future Generations: pushes for national and international decision-making to focus on securing the wellbeing of generations to come.

UN Summit of the Future:

• It is a flagship event organised during the annual high-level UN General Assembly meeting in September.
• It brings together UN Member States, UN agencies, NGOs, CSOs, academic institutions, the private sector, and youth under the theme, ‘Summit of the Future: Multilateral Solutions for a Better Tomorrow’.
• It aims to address some of the most pressing global challenges by strengthening multilateral cooperation and advancing long-term strategies for global governance.
• This will be achieved through an action-oriented outcome document known as the Pact for the Future.

UN Security Council (UNSC):

• The Security Council was established by the UN Charter in 1945. It is one of the six principal organs of the United Nations.
• Its primary responsibility is to maintain international peace and security.
• Composition: It consists of 15 members:
  • Permanent Members (5):China, France, Russia, UK and US.
  • Non-Permanent Members (10): Elected for two-year terms by the General Assembly.
• Voting:
  • Each member of the Security Council has one vote.
  • A resolution typically needs at least 9 votes in favor out of the 15.
• Veto Power: Permanent members can veto any substantive resolution. A single veto from any of these five members prevents the resolution from passing, regardless of the number of votes in favour.
• The council’s presidency rotates every month among its 15 members.
• The council is headquartered at New York.

Need for UNSC Reforms:

• Representation: The five permanent members reflect the geopolitical realities of 1945, when the UN was founded, but not the current global order. The lack of permanent members from Africa, Latin America, and other populous regions is seen as a major gap.
• Veto Power Issues: Veto power has been misused by countries for their national interest. For instance, P5 members have used their veto to block resolutions related to Syria, Ukraine, and Palestine.
• New Threats: The UNSC’s current structure struggles to address emerging global threats like climate change, cyber warfare, pandemics, and terrorism.
• Loss of confidence: Rivalries among P5 members has prevented the council from taking decisive actions. This has undermined the credibility of UNSC.

G4 group and Uniting for Consensus movement

• The G4 nations comprising Brazil, Germany, India, and Japan are four countries which support each other’s bids for permanent seats on the United Nations Security Council.
• G4’s primary aim is the permanent member seats on the Security Council.
• Each of these four countries have figured among the elected non-permanent members of the council since the UN’s establishment.
• Their economic and political influence has grown significantly in the last decades, reaching a scope comparable to the permanent members (P5).
• However, the G4’s bids are often opposed by the Uniting for Consensus movement( Under the leadership of Italy, it aims to counter the bids for permanent seats proposed by G4 nations (Brazil, Germany, India, and Japan) and is calling for a consensus before any decision is reached on the form and size of the United Nations Security Council.), and particularly their economic competitors or political rivals

Suggested reforms:

• Expanding the number of permanent members to include countries like India, Japan, Brazil, and South Africa, representing more regions.
• Introducing semi-permanent seats for regional blocs that would rotate representation.
• Limiting or abolishing the veto power to prevent its abuse or introducing mechanisms to override a veto if a majority of the council agrees.

2. China probes U.S. group over ‘boycott’ of Xinjiang cotton

Sub: IR

Sec: Places in news

Context:

• China said that it is investigating U.S. fashion group PVH Corp., which owns brands like Tommy Hilfiger and Calvin Klein, for “unreasonably boycotting” cotton from its Xinjiang region, where Beijing is accused of widespread rights violations.
• China has accused the company of violating trade principles without a factual basis.

Background:

• Many countries including U.S. has implemented boycotts and restrictions on products from Xinjiang due to concerns over human rights abuses, particularly related to the treatment of Uyghur Muslims and other ethnic minorities in the region.
• In 2021, US enacted the Uyghur Forced Labour Prevention Act, which prohibits imports from Xinjiang unless exporters can prove their products are not made with forced labour.

Accusations against China:

• Detention Camps: The Chinese government has been accused of detaining over a million Uyghurs and other minorities in what it describes as “re-education” centres, aimed at combating extremism.
• Surveillance: Xinjiang is heavily monitored, with extensive use of surveillance technologies.
• Forced Labour: There are widespread allegations of forced labour in industries linked to Xinjiang, raising concerns about products entering global supply chains without ethical sourcing.
• Cultural Suppression: The Chinese government has implemented policies that restrict religious practices and promote assimilation.

China’s reaction:

• China rejects the allegations, saying its policies in Xinjiang have rooted out terrorism and extremism while promoting development.

About Xinjiang:

• Xinjiang is an autonomous region in northwest China, home to various ethnic groups, including the Uyghurs, a predominantly Muslim population.
• It is officially known as the Xinjiang Uyghur Autonomous Region (XUAR).
• It shares borders with eight countries, including Kazakhstan, Kyrgyzstan, and Tajikistan to the northwest, Pakistan and India to the southwest, Mongolia to the northeast, Russia to the north, and Afghanistan to the west.
• The region is rich in minerals, oil and natural gas.

Who are Uyghurs?

• The Uyghurs are a predominantly Muslim minority Turkic ethnic group, primarily living in Xinjiang.
• The Uyghurs are considered to be one of the55 officially recognized ethnic minority communities in China.
• Historically, the Uyghurs have inhabited the region for centuries. However, China recognises the community only as a regional minority and rejects that they are an indigenous group.

3. Tuvalu’s Fight to Preserve Maritime Boundaries Amid Rising Sea Levels

Sub: IR

Sec: Places in news

Why in News
On September 25, 2024, the United Nations General Assembly is set to hold a high-level meeting on sea-level rise. Tuvalu’s Prime Minister Feleti Teo will seek international support to preserve Tuvalu’s maritime boundaries and ensure its statehood remains intact, despite the threat posed by rising sea levels.

Tuvalu and the Threat of Rising Sea Levels
Tuvalu, a Pacific island nation of around 11,000 people, is composed of nine atolls. These low-lying islands are particularly vulnerable to climate change and rising sea levels.

NASA Projections: By 2050, NASA scientists predict that half of Funafuti, Tuvalu’s main atoll, will be submerged by daily tides. This atoll is home to 60% of the nation’s population.

Water and Agriculture Crisis: Due to saltwater intrusion, groundwater has become unusable, leaving residents reliant on rainwater tanks and a central raised garden for growing vegetables.

Legal Battle for Maritime Boundaries and Statehood

Maritime Boundaries and Statehood: Tuvalu is seeking legal certainty about its maritime boundaries and statehood if the nation becomes submerged. A continued presence on some land is vital to ensure sovereignty.

Changing International Law:Tuvalu aims to amend the UN Convention on the Law of the Sea to ensure its maritime boundaries remain intact, even if rising sea levels submerge its land.

UN’s International Law Commission Support:In July 2024, the International Law Commission supported a “strong presumption” that statehood would continue even if a nation’s land becomes partially or fully submerged.

International and Regional Support for Tuvalu

Pacific Islands Forum:Tuvalu’s regional neighbors, including the 18 members of the Pacific Islands Forum, have declared that their maritime boundaries are fixed, regardless of sea-level changes.

Bilateral Support:Fifteen countries, including Asia and Europe, have signed bilateral communiques agreeing to recognize Tuvalu’s boundaries as permanent. However, major fishing nations in the Pacific, except for Taiwan and Fiji, have not signed, causing concerns over future challenges.

About Pacific Islands Forum (PIF)

Formation: Established in 1971 as the South Pacific Forum, renamed to Pacific Islands Forum in 2000.

Membership: Comprises 18 member states in the Pacific region including Australia, New Zealand, Papua New Guinea, and Fiji.

Observer Status: Includes territories like American Samoa and global organizations such as the UN and the World Bank​.

Objectives

Economic Growth: Aims to promote sustainable economic development among member states.

Political Governance: Enhances political stability and governance structures.

Regional Security: Focuses on strengthening security collaboration to address regional challenges​.

Social Inclusion: Advocates for social inclusion and equitable development across the Pacific​.

4. A smuggler-turned-forest protector bags prestigious award

Sub :Env

Sec: Climate change

Context:

• Sabu Varghese, once a smuggler in the Periyar Tiger Reserve (PTR) in Thekkady, India, has received the prestigious Cricketers for Wildlife Conservation Service Award.
• This award recognizes his remarkable transformation from a forest exploiter to a dedicated protector.

Key Points:

• Sabu, also known as Kunjumon, was previously involved in illegally harvesting and selling Vayana bark (cinnamon tree bark).
• In 1996, he and 23 other smugglers decided to stop their illegal activities and join forest protection efforts.

Periyar Tiger Trail initiative:

• The Periyar Tiger Trail, an ecotourism initiative, was created to provide sustainable livelihoods for former smugglers.
• This program became a national model, offering legitimate income and social acceptance to those who had renounced illegal activities.
• Conservation Efforts:
  • Sabu became a key figure in anti-smuggling operations in the PTR.
  • He joined the Cheetah Squad, which caught sandalwood smugglers from Tamil Nadu.
  • Sabu also helped other former smugglers reintegrate into society through the ‘Vidiyal’ ecotourism program.

About the Cricketers for Wildlife Conservation Service Award:

• Sabu received the award at the M. Chinnaswamy Stadium in Bengaluru.
• Former Indian cricketer Gundappa Vishwanath presented him with a cash prize of ₹1 lakh and a memento.
• The award was established by Cricketers for Wildlife Conservation, an initiative by former Indian cricketers Sandeep Patil, Yusuf Pathan, and Harbhajan Singh.
• It aims to recognize unsung heroes of forest conservation and motivate those protecting India’s forests.
• Additional Recognition:
  • M.N. Jayachandran, an environmentalist from Idukki, won the award in the Wildlife Crusader category.

Source: TH

5. Fashion suppliers want brands to help with EU green regulations

Sub :Env

Sec: Int conventions

Corporate Sustainability Due Diligence Directive (CSDDD) of EU:

• The European Union adopted the Corporate Sustainability Due Diligence Directive (CSDDD) in July.
• It requires corporations to make their global value chains more sustainable.
• The directive focuses on workers’ rights and emissions reduction.
• The directive aims to improve labor conditions and workplace safety.

Impact on Low-Income Countries:

• Asian countries, especially Bangladesh (world’s second-largest clothing exporter after China), will be significantly affected.
• Suppliers in these countries will need to conduct due diligence to protect workers and communities.
• Estimated additional investments of 20-30% required to make factories “green”.

Challenges and Concerns:

1. Legal and Implementation Complexities:
   • Countries need to pass laws aligning with the EU directive.
   • Brands must devise implementation strategies.
   • Courts need precedents to enforce new laws.
2. Varying Capacities and Plans:
   • Different brands have different sustainability goals (e.g., H&M vs. Walmart).
   • Smaller producers may struggle to meet specific brand benchmarks.
3. Financial Burden:
   • The fashion industry needs an estimated $1 trillion investment for net-zero transition.
   • Suppliers expect brands to share the burden of this transition.

Potential Opportunities

• Suppliers may push for more ethical commercial practices and favourable contracts.
• Industry associations (like BGMEA in Bangladesh) are creating platforms to support the transition.

Global Clothing Industry:

• Market Size: The global apparel market was valued at approximately $1.5 trillion in 2021 and is expected to grow to about $2 trillion by 2026.
• Major Players:China, Bangladesh, Vietnam, and India are among the top clothing exporters globally.
• Fast Fashion: This trend has significantly impacted the industry, leading to increased production and consumption but also raising sustainability concerns.
• Sustainability: There’s a growing focus on sustainable and ethical practices in response to environmental and labour concerns.
• E-commerce: Online retail has been rapidly growing, accelerated by the COVID-19 pandemic.

Indian Clothing Industry:

• Economic Importance: Textiles and apparel contribute about 2% to India’s GDP and 15% to the country’s export earnings.
• Employment: It’s one of the largest employers in India, providing direct employment to over 45 million people.
• Export Strength:India is among the world’s largest exporters of textiles and apparel.
• Domestic Market: India also has a large and growing domestic market for clothing.
• Government Initiatives: The Indian government has introduced several schemes to boost the textile and apparel sector, including the Production Linked Incentive (PLI) scheme.
• Challenges: The industry faces challenges such as competition from countries like Bangladesh and Vietnam, need for technological upgradation, and sustainability concerns.

Source: TH

6. Centre’s pro-farmer turn in edible oils

Sub: Geo

Sec: Eco Geo

India’s Edible Oil Policy Changes and Market Trends

1. Increased Import Duties (September 13, 2023):
   • Basic customs duty (BCD) on crude palm, soybean, and sunflower oil: 0% to 20%
   • BCD on refined oils:5% to 32.5%
   • Effective import duty on crude oils:5% to 27.5% (after adding a 5% ‘agriculture infrastructure and development cess’ and a 10% ‘social welfare’ surcharge on the BCD with the cess).
   • Effective import duty on refined oils:75% to 35.75%
2. Approval for State Procurement:
   • Maharashtra, Madhya Pradesh, Karnataka, and Telangana allowed to procure soybeans at the minimum support price (MSP) of ₹4,892 per quintal.

Global food inflation:

• ​​The United Nations’ Food and Agriculture Organization’s vegetable oils price index (base value: 2014-16=100) rose from 98.7 points in August 2020 to a peak of 251.8 points in March 2022, post Russia’s invasion of Ukraine.
• Global prices have eased since, with the index reading at 136 points for August 2024.

Impact on Domestic Market:

• Wholesale prices in key markets like Dewas and Latur recovered from ₹4,200-4,300 to ₹4,600-4,700 per quintal

Reasons for Policy Shift

1. Economic Considerations:
   • Increased oilseed planting area (193.32 lakh hectares in 2023)
   • Benign global prices
   • Negative inflation for edible oils (-0.86% in August)
2. Political Motivations:
   • Upcoming Maharashtra Assembly polls
   • Maharashtra is India’s second-largest soybean producer

Import Trends:

• 2022-23: Record 16.5 million tonnes (mt) of edible oil imports
• 2023-24 (first 10 months): 13.5 mt (3.6% lower than previous year)
• Sunflower oil imports surged to 3.1 mt, becoming the second-largest imported oil, leaving behind soybean.
  • Mainly imported from:Russia (1.5 mt), Romania (0.6 mt), Ukraine (0.5 mt) and Argentina (0.4 mt).
  • Imports of soyabean oil are primarily from Argentina and Brazil, while palm is from Indonesia and Malaysia.

Oilseeds: Domestic Production vs. Imports

• 2022-23 Imports: 16.5 mt
• Domestic Production: 10.3 mt
  • Mustard/rapeseed: 4 mt
  • Soybean: 1.9 mt
  • Cottonseed: 1.2 mt
  • Rice bran: 1.1 mt
  • Groundnut: 1 mt

FAO Food Price Index (FFPI):

• The FAO Food Price Index (FFPI) is a measure of the monthly change in international prices of a basket of food commodities.
• It consists of the average of five commodity group price indices weighted by the average export shares of each of the groups over 2014-2016.
• Under this, the following indices are released:
  • FAO Cereal Price Index
  • FAO Vegetable Oil Price Index
  • FAO Dairy Price Index
  • FAO Meat Price Index
  • FAO Sugar Price Index

Source: IE

7. India’s greenhouse gas emissions increase since 2021

Sub :Env

Sec: Climate change

Context:

• India’s greenhouse gas (GHG) emissions have shown a consistent increase over the years, measured in megatonnes of CO2 equivalent per year (Mt CO2eq/yr).

GHG Emissions Growth (2014–2023)

• In 2014: 3,270.4 Mt CO2eq/yr
• In 2023: 4,133.6 Mt CO2eq/yr
• Recent growth rates:
  • 6% in 2023
  • 5.9% in 2022
  • 7.2% in 2021
• India’s Share in Global GHG Emissions (2023):
  • Share: 7.8%
  • Global ranking:3rd (after China at 30.1% and the US at 11.3%)
• Major Contributors to GHG Emissions (2023)
  • Power Industry: 46.6%
  • Industrial Combustion: 20.9%
  • Transport Sector: 11.5%
• Historical Emissions Growth (1990–2023):
  • CO2 emissions from the power industry and transport sector increased 5 to 6 times compared to 1990 levels.

India’s Historical GHG Contribution:

• Despite representing about 17% of the global population (1850–2019), India’s historical cumulative contribution to global GHG emissions is only 4%.
• Per Capita GHG Emissions
• 2023: 2.9 CO2eq/cap/yr
• 2014: 2.5 CO2eq/cap/yr

Energy Sector’s Role in GHG Emissions:

• Fossil Fuel Dependence:
  • 88% of India’s primary energy consumption came from fossil fuels in 2022.
  • 77% of total electricity generation was based on fossil fuels in 2022.
• Renewable Energy: Solar and wind are also being utilized to reduce reliance on fossil fuels.

Carbon Emissions Increase (2013–2023)

• From 2 Gigatonnes (Gt) in 2013 to 2.8 Gt in 2023, marking a 40% rise over the decade, as reported by the International Energy Agency (IEA).

Source: TH_BL

8. Panel set up to develop repairability index

Sub: Schemes

Sec: Economy

Context:

• The Department of Consumer Affairs (DoCA) announced the formation of a committee of experts to develop a robust framework for a Repairability Index.
• This initiative aims to help consumers compare and choose electronics based on how easily they can be repaired, promoting both consumer empowerment and sustainability in the tech industry.

Key Objectives of the Repairability Index:

• Consumer-focused Indexing:
  • Enables consumers to make informed decisions by comparing products based on repairability.
  • Standardizes the assessment of repairability across mobile and electronic products.
• Transparency & Sustainability:
  • Provides greater transparency regarding repair information, fostering a more sustainable technology industry.
• Ecosystem of Informed Choices:
  • Consumers will be better informed, allowing for easier comparison of products in terms of repairability, and promoting sustainable practices.

Committee Composition and Timeline:

• Chaired by Bharat Khera, Additional Secretary, DoCA.
• Other members include:
  • Anupam Mishra, Joint Secretary, DoCA.
  • Representatives from MiETY (Ministry of Electronics and Information Technology) and MSME (Ministry of Micro, Small, and Medium Enterprises).
  • Alok Kumar Srivastava, Director General, National Test House (NTH).
  • ABS Shalini, Director, DoCA.
  • Industry representatives.
• Report Deadline: The committee will submit its comprehensive report, including the framework for the Repairability Index, by November 15.

Impact on Mobile and Electronics:

• Mobile phones and electronics are identified as having fast-growing demand and short lifespans.
• The framework will offer consumers seamless access to spare parts, enhancing repairability.

Benefits for Consumers:

• Affordable Repair Options:
  • Standardizing repairability assessments will promote access to affordable repair solutions.
• Improved Consumer Satisfaction:
  • The index will bridge information gaps regarding repairs, allowing consumers to choose products aligned with sustainable practices.

9. Indian Steelmakers Demand Protection from Rising Chinese Imports

Sub: Eco

Sec: External sector

• Appeal for Safeguards:
  • Indian steelmakers have urged Finance Minister to implement safeguard measures to protect domestic investments and industries from predatory-priced imports of steel from China.
  • Steelmakers, through the India Steel Association (ISA), are requesting the imposition of anti-dumping duties, import tariff increases, and other trade actions, similar to measures adopted by the U.S., Canada, Europe, and Latin American nations.
• Global Examples of Protection:
  • The U.S. has imposed a 25% duty on all steel products from China, with duties as high as 100% on certain steel categories.
  • Europe has implemented a 25% safeguard duty on Chinese steel, and Canada is expected to impose similar duties starting in October 2024. Turkey has also levied anti-dumping tariffs ranging from 20.5% to 57.5%.
  • Other Asian nations such as Japan, Vietnam, and Malaysia have initiated anti-dumping probes to curb Chinese steel imports.
• Rising Chinese Imports:
  • Chinese steel imports to India increased by 93% year-on-year in FY24, turning India into a net importer of steel.
  • From April to August 2024, India continued to be a net importer, with the trade deficit in steel surpassing FY24 levels.
• Proposals by Indian Steelmakers:
  • Doubling the import duty on steel from 7.5% to 15%.
  • Imposing safeguard duties of up to 25%.
  • Implementing an export duty on low-grade iron ore (below 58% iron content).
  • Removing the lesser-duty rule, which allows lower tariffs on certain imports.
  • They also suggest adding $80-100 per tonne to the landed cost of imported steel to ensure a level playing field for domestic producers.
• Challenges in Export Markets:
  • Indian steel exporters are facing a 40% decline in outbound shipments due to global trade barriers and increased competition from cheaper Chinese steel sold at predatory prices.
• Impact of China’s Housing Slowdown:
  • A prolonged slowdown in housing demand in China has led to a surplus of steel, causing price distortions in the global market, particularly affecting India’s domestic steel industry.

The steelmakers are seeking these protections to safeguard ₹70,000-₹75,000 crore in annual investments and to ensure fair competition in both domestic and export markets.

Safeguard Measures under WTO:

• Anti-Dumping Duty: Imposed when a foreign company exports a product at a price lower than its home market value, to protect local industries from unfair competition.
• Countervailing Duty: Imposed to counteract subsidies given by foreign governments to their exporters, which distort trade.
• Quotas: Limits the quantity of a particular product that can be imported during a set period.
• Tariffs: Taxes on imported goods to protect domestic industries or raise revenue.

Predatory pricing

Predatory pricing refers to the practice of a company setting very low prices, often below cost, to drive competitors out of the market. Once the competition is eliminated, the company may raise prices to recoup losses and dominate the market. This strategy harms competition and can result in a monopoly or reduced choices for consumers.

It is considered an anti-competitive practice and is illegal in many countries under competition law or antitrust regulations. However, proving predatory pricing in court can be challenging.

Example: A large retailer drastically reducing prices to outlast smaller competitors.

10. Bank Bond Issuances Set for Record High in FY 2025

Sub: Eco

Sec: Monetary Policy

• Expected Record Issuances:
  • Bond issuances by banks are projected to reach an all-time high of ₹1.2-1.3 lakh crore in FY2025, surpassing the previous record of ₹1.1 lakh crore in FY2023.
  • This surge is driven by tight liquidity conditions and credit growth outpacing deposit growth, requiring banks to raise funds from alternative sources.
• Issuances Year-to-Date (YTD):
  • As of FY2025 (YTD), total bond issuances by banks stand at ₹76,700 crore, marking a 225% year-on-year (YoY) growth.
  • This amount has already reached 75% of the total bond issuances of FY2024.
• Dominance of Public Sector Banks (PSBs):
  • Public sector banks are leading in bond issuance, as private banks focus on reducing their credit-to-deposit (CD) ratio.
  • PSBs accounted for 77% of infrastructure bond issuances between FY2023 and FY2025, with expectations to grow to 82-85% in FY2025.
• Infrastructure Bonds:
  • The government’s emphasis on infrastructure spending and banks’ sizeable infrastructure loan books have fueled the increase in infrastructure bonds.
  • Two-thirds of bank bond issuances in FY2025 are expected to be infrastructure bonds, supported by long-term demand from insurance companies and provident funds.
• Advantages of Infrastructure Bonds:
  • Bonds for infrastructure have longer tenors (10-15 years) as per investor preference.
  • Unlike traditional deposits, these bonds are not subject to SLR and CRR requirements, making them more flexible for funding long-term portfolios.
• Key Sectors Funded:
  • Affordable housing is also eligible for funding through infrastructure bonds, potentially expanding the eligible loan book for bond issuances.
  • As of June 30, 2024, PSBs held 75% of banking sector advances to the infrastructure sector, valued at around ₹13-14 lakh crore.
• Cost and Strategic Considerations:
  • While infrastructure bonds are slightly costlier than deposits, their strategic advantage is the ability to provide long-term funding for the infrastructure portfolio without regulatory constraints.

The rise in bond issuances reflects the growing reliance on long-term funding sources to support India’s infrastructure development and credit expansion, with public banks playing a dominant role in this shift.

Credit-to-Deposit (CD) ratio

The Credit-to-Deposit (CD) ratio is a metric used to assess the financial health of a bank. It indicates the proportion of a bank’s deposits that have been lent out as credit.

A higher CD ratio suggests that a bank is lending a large part of its deposits, while a lower ratio indicates more deposits are kept in reserve.

Formula: CD Ratio = (Total Loans / Total Deposits) × 100

Examples:

• A CD ratio of 75% means that 75% of the deposits have been issued as loans.
• A high ratio may indicate liquidity risks, while a low ratio might suggest under-utilization of deposits.

11. Is BMI Losing Its Relevance? The Rise of Body Roundness Index (BRI)

Sub: Sci

Sec: Health

Why in News

Recent studies suggest that BMI (Body Mass Index) may no longer be an adequate indicator of health risks. Instead, BRI (Body Roundness Index), a newer metric, is showing promise in predicting health conditions more effectively. This shift in focus from BMI to BRI has sparked discussions among healthcare professionals, bringing BRI to the forefront as a potential replacement for BMI.

Emergence of BRI as an Alternative

What is BRI?
BRI (Body Roundness Index), created by U.S. mathematician Diana Thomas in 2013, measures body roundness to assess health risks better than BMI. It incorporates waist circumference and height to estimate body fat percentage.

BRI Scoring: The scores range from 1 to 15, with scores above 6.9 or below 3.41 indicating higher health risks.

BRI provides a visual, egg-shaped outline, with a green zone indicating the healthy range.

Why BRI is Gaining Importance

Limitations of BMI: BMI only considers weight relative to height but does not distinguish between muscle, fat, or water. It also fails to indicate where fat is distributed in the body.

Fat Distribution: BRI takes into account waist circumference, providing a better indication of visceral fat (fat around internal organs), which is linked to cardiovascular diseases and metabolic syndromes.

Fat Distribution Accuracy: BRI can indicate how round a person is, which correlates with body fat percentage and visceral fat levels, offering a clearer picture of health risks.

Ethnic Variability: BMI was primarily based on 19th-century European populations and has been found inadequate for certain ethnic groups. BRI accommodates the differences in fat distribution across populations, especially Asians, who tend to accumulate more abdominal fat at lower BMIs.

Health Risks Associated with BRI Scores

Higher BRI Scores: Elevated scores suggest higher body fat, especially visceral fat, which is associated with diseases such as:Type 2 diabetes, cardiovascular diseases and Metabolic syndromes (MetS).

Low BRI Scores: Extremely low scores also carry risks, including malnutrition and related health issues.

How BRI Differs from BMI
BRI emphasizes the distribution of fat in the body, particularly the accumulation of visceral fat around the abdomen. Unlike BMI, which only measures overall weight, BRI accounts for fat levels and where fat is stored, which has a more significant impact on health risks such as diabetes and cardiovascular diseases.

BRI and Visceral Fat: Excess fat around internal organs leads to higher risks of metabolic conditions.

About Body Mass Index (BMI)is a simple calculation that uses a person’s weight and height to estimate body fat. It is calculated as weight in kilograms divided by height in meters squared (kg/m²). BMI is commonly used to classify individuals into categories: underweight, normal weight, overweight, and obese. However, it does not differentiate between fat, muscle, or water, making it less accurate in predicting overall health risks like diabetes or cardiovascular diseases.

Difference Between BMI and BRI:

12. Understanding Scientific Retractions and Their Importance

Sub: Sci

Sec: Msc

Why in News
Recently, an Indian scientist based in Lucknow has gained attention after accumulating 45 retractions for scientific papers, according to the ‘Retraction Watch’ database. Similarly, a researcher from Kolkata published nearly 300 scientific papers in a single year, an almost impossible feat, leading to the retraction of six papers. These incidents highlight the growing issue of retractions in the scientific community, especially as research misconduct becomes more prevalent in India and worldwide.

What Are Retractions?

A retraction is the process of formally withdrawing a scientific paper from academic literature due to serious flaws. These flaws can be the result of either honest errors or deliberate manipulation. The academic community tends to be more understanding when retractions stem from honest mistakes, but there is far less tolerance for deliberate fraud.

What is the Retraction Index?

The retraction index is calculated by multiplying the number of retractions in a certain period by 1,000 and dividing by the total number of published articles.

This metric was introduced by scientists Ferric Fang and Arturo Casadevall in 2011. They found that papers published in high-impact journals are more likely to be retracted compared to those in low-impact journals. The “impact” here refers to the impact factor, which is the average number of citations a paper receives in the last two years.

What is Retraction Watch Database?

The Retraction Watch Database is an online platform that tracks retracted scientific papers across the globe. It aims to increase transparency and accountability in scientific research.

Purpose:To keep a record of scientific papers that have been retracted due to errors, misconduct, or fraud, thereby helping the scientific community and public identify unreliable research.

Global Coverage:It covers retractions from journals worldwide, providing comprehensive insights into research misconduct and errors.

Accessibility:The database is freely available online and can be accessed by researchers, policymakers, and the general public.

Causes of Retractions Documented in the Database:

Plagiarism:Copying content from other research without proper attribution.

Data Manipulation: Deliberately falsifying or misrepresenting data in scientific papers.

Image Manipulation: Altering images used in scientific results to support false claims.

Use of Paper Mills: Fake research papers sold to scientists, often linked to fraudulent academic practices.