Daily Prelims Notes 4 October 2024

Daily Prelims Notes

4 October 2024

Table Of Contents

1. Odisha’s leopard population jumps by 22% to 696
2. What is the status of the Swachh Bharat Mission 2.0?
3. Marathi among 5 languages accorded ‘classical language’ status
4. Supreme Court Lays Down ‘Functionality’ and ‘Essentiality’ Test for Claiming Input Tax Credit (ITC)
5. Combatting Sickle Cell Disease
6. Stem Cell Therapy as a Potential Cure for Type 1 Diabetes: The Indian Perspective
7. Government Initiatives in Agriculture and Energy: New Mergers and Mission for Growth
8. Govt. opens portal for internships to bridge skill set gap
9. Macron hosts Francophone leaders in bid to boost clout
10. OPEC+ could cushion Iran oil shock but not a broader disruption

1. Odisha’s leopard population jumps by 22% to 696

Sub: Env

Sec: Species in news

Context:

• The All Odisha Leopard Estimation 2024 has been released.

Current Population Status in Odisha:

• Latest count (2024): 696 leopards (range: 668-724)
• 22% increase from 2022 (568 leopards)
• Still below 2018 levels (760 leopards)

National Context:

• India’s total leopard population: 13,874
• Historical decline: 75-90% reduction over past 120-200 years
• National poaching statistics: 1,485 leopards in last 10 years

Survey Methodology:

• Coverage: 47 forest divisions
• Methods used:
  • Field surveys for indirect evidence (pugmarks, scrapes, scats, etc.)
  • Camera traps for identification through rosette patterns
  • Scientific monitoring of direct and indirect evidence

Key Findings

1. Protected Areas:
   • Similipal Tiger Reserve: Largest leopard population
     • Connected to Hadagarh Wildlife Sanctuary and Kuldiha Wildlife Sanctuary, which is essential for leopards to disperse from Similipal to these other protected areas.

About Similipal National Park:

• Simlipal is a tiger reserve in the Mayurbhanj district in the Indian state of Odisha
• It is part of the Mayurbhanj Elephant Reserve, which includes three protected areas -Similipal Tiger Reserve, Hadgarh Wildlife Sanctuary and Kuldiha Wildlife Sanctuary.
• Simlipal National Park derives its name from the abundance of red silk cotton trees growing in the area.
• The vast terrain of Similipal with wide altitudinal, climatic and topographic variations, criss-crossed by large number of perennial streams, harbours a unique blend of Western Ghats, Eastern Ghats and Sub-Himalayan plant species.
• The floristic composition indicates a connecting link between South Indian and North Eastern Sub-Himalayan Specie
• Forest is predominantly moist mixed deciduous forest with tropical semi-evergreen forest in areas with suitable microclimatic conditions and sporadic patches of dry deciduous forests and grasslands. It forms the largest watershed of northern Odisha.
• It holds the highest tiger population in Odisha, and harbours the only population of melanistic tigers in the world.
• Other carnivores found here are leopard, leopard cat, fishing cat, jungle cat and wolf. The active management of mugger has revived its population on the banks of the rivers Khairi and Deo.
• Similipal Tiger Reserve is also home to the largest population of elephants in Odisha.
• This protected area is part of the UNESCO World Network of Biosphere Reserves since 2009.
• Satkosia landscape: Second highest population
• Hirakud Wildlife Division (including Debrigarh Wildlife Sanctuary): Significant population presence

2. Important Statistics:
   • 45% of leopards live outside protected areas
   • Melanistic leopards found in three forest divisions.
   • State forest cover: 50% of total geographic area

Conservation Challenges

1. Poaching Concerns:
   • 59 leopard skins seized (2018-2023)
   • 57 leopard skins recovered by STF (2019-2024)
   • Total confirmed poaching: 116 leopards
2. Protected Areas Network:
   • 1 National Park
   • 19 Wildlife Sanctuaries
   • 2 Conservation Reserves

Source: TH

2. What is the status of the Swachh Bharat Mission 2.0?

Sub: Schemes

Sec: Health

Legacy Waste Dumpsites in India

• The Central Government launched the Legacy Waste Management Project under the Swachh Bharat Mission (SBM) 2.0 in October 2021, aiming to remediate these dumpsites by 2026.
• Current Status:
  • India has over 3,000 legacy waste dumpsites.
  • 2,424 dumpsites have waste loads exceeding 1,000 tonnes.
  • Only 471 (19.43%) of the 2,424 dumpsites have been fully remediated halfway through the project period.

What are Legacy Waste Dumpsites?

• These dumpsites contain unmanaged solid waste accumulated over many years in an unscientific manner.
• India generates approximately 1,50,000 tonnes of municipal solid waste daily (as per the State of India’s Environment 2023 report).
• Due to a lack of solid waste management infrastructure, municipal corporations often create garbage hills in city outskirts, which are now part of urban areas due to city expansion.
• Around 16 crore tonnes of legacy waste is spread across 15,000 acres of prime land in India.

Health Hazards of Legacy Waste

• Exposure to emissions from legacy dumpsites can cause:
  • Irritation of the mouth and throat.
  • Methane exposure leading to nausea, vomiting, and coordination loss.
  • Ragpickers often suffer from skin allergies due to prolonged waste exposure.
  • Residents near landfills may develop tuberculosis, asthma, diabetes, depression, cholera, malaria, and other diseases.
• These dumpsites also emit significant amounts of greenhouse gases like methane and carbon dioxide.

Swachh Bharat Mission (SBM):

• Launched on October 2, 2014, the Swachh Bharat Mission aimed to eliminate open defecation and create Open Defecation Free (ODF) villages.
• SBM-Urban 2.0 (2021-2026):
  • Focus on making all cities “garbage-free” and maintaining ODF status.
  • Includes goals like 100% source segregation, door-to-door waste collection, and scientific waste management.
  • Aims to remediate all legacy dumpsites and convert them into green zones.
  • Provisions for scientific landfills to prevent the creation of new dumpsites.

Progress on Dumpsite Remediation

• As of September 2024, out of 2,424 dumpsites:
  • 471 have been fully remediated.
  • 1,226 are under remediation.
  • 727 sites remain untouched.
• Land Reclamation:
  • 27% of the total 17,039 acres of dumpsite land has been reclaimed.
  • Tamil Nadu leads with 837 acres (42%) reclaimed.
  • Gujarat has reclaimed 75% of its landfill area (698 out of 938 acres).

Financial Aspects

• Central Share assistance of ₹3,226 crore has been approved for remediation projects.
• State and Union Territory governments are required to provide matching funds.

3. Marathi among 5 languages accorded ‘classical language’ status

Sub: History

Sec: Art and Culture

Context:

• The Union Cabinet approved the recognition of Marathi, Pali, Prakrit, Assamese, and Bengali as classical languages.
• This decision reflects the government’s effort to honor these languages as custodians of India’s cultural heritage.

Significance:

• PM Narendra Modi emphasized Marathi as a symbol of Indian pride, stating that the recognition would encourage more people to learn the language.
• While these languages are primarily linked to states like Maharashtra (Marathi), Bihar, Uttar Pradesh, Madhya Pradesh (Pali and Prakrit), West Bengal (Bengali), and Assam (Assamese), the broader impact will extend nationally and internationally.

Background on Classical Language Status

• In October 2004, the Centre introduced the category of classical languages with Tamil as the first.
• The recognition of a classical language is based on criteria established by a Linguistic Experts Committee.
• According to the committee, the following revised benchmarks must be met for a language to be considered “classical”:
  • High antiquity of (its) is early texts/recorded history over a period of 1500- 2000 years.
  • A body of ancient literature/texts, which is considered a heritage by generations of speakers.
  • Knowledge texts, especially prose texts in addition to poetry, epigraphical and inscriptional evidence.
  • The Classical Languages and literature could be distinct from its current form or could be discontinuous with later forms of its offshoots.
• Recognised Classical Languages are: Tamil ( 2004), Sanskrit (2005), Telugu( 2008), Kannada (2008), Malayalam( 2013) and Odia (2014).

Benefits of Classical Language Status:

• Once a language is designated as classical, the Ministry of Education provides various benefits to promote it, including:
  • Two major international awards annually for scholars of eminence in the language.
  • Establishment of a Centre of Excellence for Studies in the Classical Language.
  • Requesting the University Grants Commission (UGC) to create Professional Chairs in Central Universities dedicated to the classical language.

Institutional Support for Classical Languages:

• The Ministry of Education has taken steps to promote these languages, such as:
  • Establishing three central universities in 2020 to promote Sanskrit.
  • The Central Institute of Classical Tamil facilitates translations of ancient Tamil texts and offers courses.
  • Centres of Excellence for Kannada, Telugu, Malayalam, and Odia were also set up to promote these classical languages.

Source: IE

4. Supreme Court Lays Down ‘Functionality’ and ‘Essentiality’ Test for Claiming Input Tax Credit (ITC)

Sub: Eco

Sec: Fiscal policy

• Supreme Court Judgment on ITC for Real Estate Companies:
  • Real estate companies can claim Input Tax Credit (ITC) under the Goods and Services Tax (GST) regime for costs incurred on construction of commercial structures intended for renting or leasing purposes.
  • The judgment is a positive development for the real estate sector, providing them the benefit of ITC for commercial properties.
• Conditions for ITC Eligibility:
  • A building qualifies for ITC if it is deemed to be a plant and is used for the supply of services such as renting or leasing.
  • ITC can be availed only if the other terms and conditions under the CGST Act and Rules are fulfilled.
• Key Clarification by the Court:
  • The court emphasized that ITC would not be available if the construction of the building is for the recipient’s own use. This means that if the property is built for personal use, the ITC chain breaks, and the credits cannot be claimed.
  • The decision on whether a building qualifies as a plant under Section 17(5)(d) of the Central Goods and Services Tax Act, 2017 is a factual question.
• Functionality and Essentiality Test:
  • The court introduced a functionality test to determine if a building can be classified as a plant.
  • The role of the building in the business operations is critical—if the building is functionally integral to the business’s performance or output, ITC may be available.
  • For instance, buildings such as malls, warehouses, or any structure besides hotels or cinemas may qualify as plants, but this depends on their use in the registered person’s business.
• Reasoning for the Judgment:
  • Renting or leasing of immovable property is considered a supply of service under the CGST Act. Therefore, if the premises qualify as a plant, the ITC on goods and services used for setting up the property can be allowed.

This judgment provides clarity on the conditions and tests that need to be met for claiming ITC on construction costs in the real estate sector, ensuring better compliance with the CGST framework.

What is Input Tax Credit (ITC)?

• Definition:
  • Input Tax Credit (ITC) refers to the tax already paid by a person at the time of purchasing goods or services, which can be used as a deduction from the tax payable on sales. It helps to avoid the cascading effect of taxes, i.e., “tax on tax”.
• Mechanism to Avoid Cascading:
  • ITC is designed to eliminate double taxation on the same product or service at different stages. It ensures that the tax is only levied on the value addition at each stage of production or service.
• Application in GST:
  • Under Goods and Services Tax (GST), ITC is available for the CGST, SGST/UTGST, or IGST charged on the supply of goods or services made to a registered person.
  • IGST on imports and tax paid under the reverse charge mechanism are also included in the ITC framework.
• Utilization of ITC:
  • When a registered dealer buys goods or services, they pay taxes at the time of purchase.
  • On selling goods or services, they collect taxes. The taxes paid during purchases are adjusted against the output tax (tax on sales).
  • The balance tax liability is calculated as tax on sales minus tax on purchase, and the remaining amount must be paid to the government.
  • This process of adjusting input tax against output tax is called the utilization of input tax credit.
• Refund Mechanism:
  • If the tax paid on inputs is higher than the tax on the output, the excess tax can be claimed as a refund.
• Exceptions:
  • Businesses under the composition scheme cannot avail of ITC.
  • ITC cannot be claimed for goods or services used for personal purposes or for exempted goods.

5. Combatting Sickle Cell Disease

Sub: Sci

Sec: Health

Why in News

Sickle Cell Disease (SCD), a genetic disorder that significantly reduces life expectancy and causes severe complications, continues to pose a challenge in India. Recent reports from rural Maharashtra have highlighted remarkable efforts in managing the disease, offering hope and relief to patients in marginalized communities.

About Sickle Cell Disease (SCD):

Sickle Cell Disease (SCD) is an inherited haemoglobin disorder characterised by a genetic mutation that causes red blood cells (RBCs) to assume a sickle or crescent shape rather than their normal round shape.

This abnormality in RBCs results in increased rigidity, impairing their ability to circulate effectively throughout the body. Consequently, individuals with SCD often experience complications such as anaemia, organ damage, recurrent and severe pain episodes, and a shortened lifespan.

Sickle cell disease is a common monogenic disorder of haemoglobin.

India has the highest prevalence of SCD in South Asia, with over 20 million affected individuals.

As per the Ministry of Health and Family Welfare, marginalised tribal populations are most vulnerable to SCD.

Symptoms: Symptoms of sickle cell disease can vary, but some common symptoms are-

Chronic anaemia which leads to fatigue, weakness, and paleness.

Painful episodes (also known as sickle cell crisis) cause sudden and intense pain in the bones, chest, back, arms, and legs.

Delayed growth and puberty.

Treatment Processes:

Blood Transfusions: These can help relieve anaemia and reduce the risk of pain crises.

Hydroxyurea: This medication can help reduce the frequency of painful episodes and prevent some of the disease’s long-term complications.

Gene Therapy: It can also be treated by bone marrow or stem cell transplantation by methods like Clustered regularly interspaced short palindromic repeats (CRISPR).

National Mission to Eliminate SCD 2047:

There is a need for a paediatric formulation of hydroxyurea in line with the National Mission to eliminate SCD by 2047.

Under the Sickle Cell Anaemia Mission, the Council of Scientific and Industrial Research (CSIR) is developing gene-editing therapies for SCD.

6. Stem Cell Therapy as a Potential Cure for Type 1 Diabetes: The Indian Perspective

Sub: Sci

Sec: Health

Why in News

The recent success of a woman in China, who regained her insulin production after receiving stem cell therapy for Type 1 diabetes (T1D), has garnered global attention. This breakthrough, which involved the transplantation of reprogrammed stem cells, has the potential to revolutionize diabetes treatment, offering hope for millions living with this condition.

About Type 1 diabetes:

An absolute lack of insulin, usually due to destruction of the insulin-producing beta cells of the pancreas, is the main problem in type 1 diabetes.

It is to be due to an autoimmune process, in which the body’s immune system mistakenly targets its own tissues. 

This tendency for the immune system to destroy the beta cells of the pancreas is likely to be, at least in part, genetically inherited, although the exact reasons that this process happens are not fully understood.

Insulin Dependence: This leads to a lifelong dependence on externally administered insulin to manage blood sugar levels.

In contrast, type 2 diabetes occurs when the insulin produced by the body is either insufficient or ineffective. It is generally managed with oral medication and, in some cases, insulin therapy.

Difference Between Type 1 and Type 2 Diabetes

Stem Cell Therapy:

Stem cell therapy falls under the category of regenerative medicine and offers a novel approach for curing T1D.

The therapy utilizes pluripotent stem cells, which have the ability to transform into any cell type. These stem cells are pre-programmed to become insulin-producing beta cells and are transplanted into the human body.

Restoration of Insulin Production: Once inside the body, these cells begin producing insulin, potentially eliminating the need for lifelong insulin injections.

A significant breakthrough occurred when a woman with T1D in China had her insulin production restored through stem cell therapy. This marks the first successful regeneration of insulin-producing cells through stem cell transplantation.

Types of Stem Cells Used

Embryonic Stem Cells (ESC): Derived from early-stage embryos, ESCs have the ability to differentiate into insulin-producing beta cells. Controversies surrounding the ethical use of embryos make this a debated source of stem cells.

Induced Pluripotent Stem Cells (iPSCs): Adult cells that are genetically reprogrammed to revert to a pluripotent state and then transformed into insulin-producing cells. iPSCs offer a less controversial and more ethically acceptable alternative to ESCs.

7. Government Initiatives in Agriculture and Energy: New Mergers and Mission for Growth

Sub: Schemes

Sec: Agri

Why in News

The Union Cabinet, announced significant reforms in the agriculture sector, merging multiple schemes under two umbrella initiatives. It also launched the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) to boost domestic oilseed production and enhance energy efficiency initiatives.

Merging of Central Schemes into Two Major Initiatives

The Union Cabinet has decided to consolidate all Central schemes related to agriculture under two flagship programs:

Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY)

Krishonnati Yojana (KY)

The total projected expenditure for these schemes is ₹1,01,321.61 crore, with a Central share of ₹69,088.98 crore and the remaining ₹32,232.63 crore being contributed by States.

Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY): It is an umbrella scheme aimed at promoting sustainable agriculture in India.

The Union Cabinet has allocated a budget of ₹1,01,321.61 crore for this scheme, which is implemented by state governments with significant flexibility to adjust funds based on local needs.

The key components of PM-RKVY include:

Soil Health Management: Focuses on improving soil health and fertility.

Rainfed Area Development: Supports farming in rainfed regions, promoting sustainable and climate-resilient agricultural practices.

Agro Forestry: Encourages tree-based farming systems to enhance income and environmental benefits.

Paramparagat Krishi Vikas Yojana: Promotes organic farming practices across the country.

Agricultural Mechanization including Crop Residue Management: Aims to mechanize farming practices and manage crop residue to reduce pollution, especially in states like Punjab and Haryana.

Per Drop More Crop: Focuses on water use efficiency through micro-irrigation techniques.

Crop Diversification Programme: Encourages farmers to shift from water-intensive crops to more sustainable alternatives.

RKVY DPR Component: A newly introduced component, providing flexibility to prepare Detailed Project Reports (DPR) for agricultural programs.

Accelerator Fund for Agri Startups: Supports innovation and startups in the agriculture sector, providing funds for research and development.

Krishonnati Yojana (KY): The Yojana now integrates multiple schemes to avoid duplication and ensure better resource utilization. States have more flexibility in fund allocation, allowing them to address specific agricultural challenges like climate resilience and food security.

The total fund for KY is ₹44,246.89 crore, with a major portion funded by the central government.

The scheme emphasizes organic farming in the North-Eastern region, expanding the Mission Organic Value Chain Development.

State-Level Planning: Annual Action Plans (AAP) streamline planning, providing quicker approval for state-specific agriculture initiatives.

National Mission on Edible Oils (NMEO-Oilseeds): The mission aims to enhance domestic oilseed production and reduce reliance on imports of edible oils.

Implemented over 7 years (2024-31) with a financial outlay of ₹10,103 crore.

Focus on Rapeseed-Mustard, Groundnut, Soybean, Sunflower, Sesamum, along with increasing oil extraction from Cottonseed, Rice Bran, and Tree-Borne Oils (TBOs).

Increase primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31 and edible oil production to 25.45 million tonnes.

Use of high-yielding seed varieties, genome editing, and promoting oilseed cultivation on fallow lands (rice, potato) and through intercropping.

Establish 65 seed hubs and 50 seed storage units, and introduce an online 5-year rolling seed plan via the SATHI Portal for quality seed availability.

Develop 600+ clusters across 347 districts, managed by FPOs, cooperatives, and private entities, covering over 10 lakh hectares annually.

International Energy Efficiency Hub: India has recently signed a letter of intent to join the International Energy Efficiency Hub, enhancing its commitment to global energy efficiency efforts and reducing greenhouse gas emissions.

The Hub, established in 2020 as a successor to the International Partnership for Energy Efficiency Cooperation (IPEEC), is a collaborative platform that includes 16 member countries: Argentina, Australia, Brazil, Canada, China, Denmark, the European Commission, France, Germany, Japan, Korea, Luxembourg, Russia, Saudi Arabia, the United States, and the United Kingdom​

8. Govt. opens portal for internships to bridge skill set gap

Sub: Schemes

Sec: Eco

Context:

• The Prime Minister’s Internship scheme that aims to provide internship to one crore youth in top 500 companies over five years opened its portal for companies to register their internship opportunities for the pilot phase.

About the portal:

• It was developed by the Ministry of Corporate Affairs.
• The portal mca.gov.in will open for enrollment for youth aged 21 to 24.
• Open from October 12 (Vijaya Dasami) to October 25 for the first batch.
• Candidates’ information will be matched with the needs and locations of companies using artificial intelligence This will generate a shortlist of candidates for companies to review.

About the scheme:

• The scheme was announced in union budget 2024-25.
• Objective:
  • To provide internship to one crore youth in top 500 companies over five years
  • To bridge the skills gap between unemployable youth and the skills required by employers.
• Implemented by: Ministry of Corporate Affairs (MCA)
• The companies participating in the scheme were selected based on their average Corporate Social Responsibility (CSR) expenditure over the last three years.
• The internships, which will last for 12 months, will focus on real-world job environments, with at least half of the internship period dedicated to hands-on work experience.
• Interns will receive a monthly stipend of ₹5,000, with ₹4,500 provided by the government and ₹500 contributed by the company from its CSR funds.
• A one-time grant of ₹6,000 for incidental expenses will also be provided by MCA when interns join their workplace.
• A grievance redressal mechanism and a multilingual helpline (1800-116-090) have been established to support applicants and ensure a smooth internship process.

Eligibility:

• Indian nationals not employed full-time or engaged in full-time education.
• High school or higher secondary graduates.
• Candidates with ITI certificates, diplomas from polytechnic institutes, or degrees like BA, B.Sc, B.Com, BCA, BBA, or B.Pharma.
• Unemployed youth enrolled in online or distance learning courses.

Scheme is not open to:

• Post-graduates
• Children of permanent employees in Union or State governments.
• Graduates from premier institutions (IITs, IIMs, NIDs).
• Professionals with qualifications like CA, CS, or MBBS.
• Individuals from households that includes a person who earned an income of ₹8 lakh or more in 2023-24.
• Those currently in any government-sponsored skilling, apprenticeship, internship, or training programs.

9. Macron hosts Francophone leaders in bid to boost clout

Sub: IR

Sec: Int groupings

Context:

• French President Emmanuel Macron is preparing to welcome leaders from many French-speaking countries for the Francophonie summit.

About Francophonie summit:

• The summit aims to strengthen France’s influence among French-speaking nations, particularly in Africa.
• For the first time in 33 years, the summit will be hosted by France.

L’Organisation Internationale de la Francophonie:

• Founded in 1970, the L’Organisation Internationale de la Francophonie (the International Organization of La Francophonie) is an institution organising relations between countries that use the French language.
• The organization aims to promote the French language and foster cooperation among its 88 member states, which include 54 full members, 7 associate members, and 27 observers.
• These goals are outlined in the Charter of La Francophonie, adopted at the Hanoi Summit in 1997.

Francophone Countries:

• Nations where French is a significant language, either as an official language or widely spoken by the population.
• The majority of Francophone countries are in Africa, including nations like Democratic Republic of the Congo, Ivory Coast, and Senegal.
• It includes countries like Canda and Pacific Island Nations such as Vanuatu and New Caledonia.

Diminishing French influence:

• France’s influence in Africa has declined significantly due to a series of coups: Mali in 2021, Burkina Faso in 2022, and Niger in 2023.
• These events led to the replacement of governments that were friendly to France with military juntas that have started to align with Russia.
• At the same time, the ongoing crisis in Lebanon, a former French colony facing daily Israeli attacks and now a ground invasion, highlights France’s diminished influence in West Asia.

10. OPEC+ could cushion Iran oil shock but not a broader disruption

Sub: IR

Sec: Int groupings

Context:

• Iran fired missiles at Israel in response to Israeli attacks, leading to threats of further retaliation by Israel.
• Security experts have said Israel could target Iran’s oil refining sites and the Kharg Island oil port, which handles around 90% of the country’s overall crude exports.
• OPEC and the US can help ease oil prices in case there is disruption in supply due to a full-blown conflict between Israel and Iran.

OPEC’s spare capacity:

• OPEC can compensate for a complete loss of Iranian oil supply if Israel strikes Iranian oil production facilities.
• OPEC+ has been reducing oil production in recent years to support prices due to weak global demand. As a result, the group has millions of barrels of spare capacity available.
• However, much of it is in the Gulf region, which is vulnerable if the conflict escalates.
• If tensions escalate, Iran’s proxies might target oil facilities in other Gulf countries, notably Saudi Arabia.

Iran’s oil production:

• Iran is a member of the OPEC and produces about 2 million barrels per day (bpd), contributing 3% to global output.
• Exports have risen to approximately 1.7 million bpd despite US sanctions, with China being the main buyer.

Impact on Oil Prices:

• Oil prices have remained stable ($70-90 per barrel) in recent years, despite global conflicts such as Russia-Ukraine war and the conflict in West Asia.
• Increased US production has helped stabilize the market, reducing fears of significant supply shocks.
• The US produces 13% of global crude whereas OPEC accounts for 25% global crude production and around 40% by OPEC+.

About OPEC:

• The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq in 1960 by five countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
• As of 2020, OPEC has a total of 13 member countries: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, UAE, Algeria, Libya, Nigeria, Gabon, Equatorial Guinea and Republic of Congo.
• Angola left the grouping in 2023.
• It is headquartered in Vienna, Austria.
• In addition to its members, OPEC collaborates with non-member countries like Russia and Kazakhstan in a group known as OPEC+ to manage oil production collectively.

Objectives of OPEC:

• To coordinate and unify petroleum policies among member states.
• To secure fair and stable prices for petroleum producers.
• To ensure a regular supply of oil to consumers.
• To provide a fair return on capital for those investing in the petroleum industry.

OPEC + countries:

• OPEC+ is the alliance of crude oil producers that manages oil production and supply.
• OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.