Daily Prelims Notes 9 February 2025

February 9, 2025
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

9 February 2025

Table Of Contents

1. 3 Baltic states disconnect from Soviet-era grid to merge with European energy system

Sub: IR

Sec: Places in news

Context:

The Baltic countries of Estonia, Latvia, and Lithuania officially severed their electricity connection to Russia, Belarus, and the Russian exclave of Kaliningrad, ending over 30 years of reliance on the Soviet-era power grid.
This historic disconnection marks a significant geopolitical shift as the Baltics move to fully integrate into the European energy network.

Details:

The Baltic countries had notified Russia and Belarus of the disconnection plan in 2024 to avoid any potential escalation.
In the years leading up to this disconnection, sixteen power lines linking the Baltic states to Russia and Belarus were dismantled.
The Baltic states have since developed new energy infrastructure, including underwater cables in the Baltic Sea, to connect to the European energy network.
The Kaliningrad region, which lies between Lithuania and Poland, has been fully independent in terms of energy supply, relying on its own power generation systems.
It does not share land-based energy connections with mainland Russia, making the power disconnection less impactful for the exclave.

Geopolitical Significance:

The move is deeply symbolic for the three Baltic states, which have long maintained uneasy relations with Russia since their independence from the USSR in 1990.
The severance of power ties is viewed as a statement of autonomy and resilience, particularly in the context of rising tensions with Russia after the invasion of Ukraine in 2022.
The move also strengthens the energy security of the Baltic region, as they now fully control their energy systems.

Baltic countries:

The Baltic countries are three sovereign states in Northern Europe, located along the eastern coast of the Baltic Sea. These countries are Estonia, Latvia, and Lithuania.
The Baltic states were once part of the Soviet Union but declared independence in 1990, following the collapse of the USSR.
All three Baltic states are members of the European Union (EU) and NATO, having joined in 2004.
They have made significant progress in developing democratic institutions, free-market economies, and modern infrastructure.
The Baltic countries have shifted towards greater integration with Western Europe and have distanced themselves from Russia following the dissolution of the Soviet Union.

Location:

Estonia is the northernmost of the three, bordered by the Gulf of Finland to the north, Latvia to the south, and Russia to the east.
Latvia lies between Estonia to the north and Lithuania to the south, bordered by Russia to the east and the Baltic Sea to the west.
Lithuania is the southernmost, bordered by Latvia to the north, Poland and Belarus to the south and east, and the Baltic Sea to the west.

2. Is private investment expected to rise?

Sub: IR

Sec: Places in news

Context:

Finance Minister Nirmala Sitharaman expressed optimism about the potential recovery of private investments in India.
She highlighted the government’s actions, such as tax stimulus through income tax breaks and the Reserve Bank of India’s (RBI) interest rate cuts, as efforts to stimulate consumer spending and private investments.

Importance of Private Investment:

Private investment is crucial for economic growth as it helps in building physical, human, and other forms of capital, which ultimately increase the production of goods and services in an economy.
Private investment is generally seen as more efficient than public investment, as it is driven by the profit motive and market discipline, which ensure that resources are allocated based on consumer needs.
In contrast, public investments are not subject to the same market-driven pressures and can sometimes result in inefficiencies. Despite this, public investment has played a significant role in India’s high growth numbers in recent years.

Determinants of Private Investment:

Private investment is often thought to be driven by savings deposited in banks. However, in reality, it is influenced by the ability of banks to create loans.
Banks can electronically create loans, even without the need for savings to back them, thus creating a strong positive relationship between bank credit growth and private investment.
During periods of high bank credit growth, private investment tends to rise. Between 2005 and 2014, India experienced high economic growth with an average bank credit growth of 22%. However, from 2014 to 2021, the economy slowed down, and bank credit growth dropped to around 9%.

Concerns Regarding Private Investment:

Private investment has been on a downward trend for more than a decade, and it further weakened in the December 2024-2025 quarter, with a 4% drop.
In contrast, public investments, including those by the Centre and State governments, have increased significantly, 8% and 34.6%, respectively.
The drop in private investment is primarily attributed to a slowdown in economic reforms, which has discouraged investors from undertaking capital-intensive projects.

Why has private investment been sluggish?

One of the main reasons for sluggish private investment is insufficient consumer demand. Economists argue that unless consumers have more disposable income, businesses will be unwilling to invest in new projects.
The slowdown in private investment is also attributed to policy uncertainty and unfavourable government policies.
To address this, the government has introduced measures like income tax breaks, making incomes up to ₹12 lakh tax-free, to increase consumer spending.
This policy is seen as a way to boost demand and, in turn, encourage private investment.
However, historical trends suggest that there may be an inverse relationship between private investment and consumer spending.

Trends in Private Investment and Consumption:

Private final consumption expenditure stood at a high of 90% of GDP in 1950-51, from where it dropped gradually over the decades to hit a low of 7% of GDP in 2010-11.
At the same time, private investment as a percentage of GDP rose from around 10% in 1950s to around 27% in 2007-08.
After private investment peaked in 2011-12, private consumption spending started to rise, even though private investment has since declined.
This suggests that money not invested tends to be spent on consumption, and vice-versa.

3. Makhana: The Nutrient-Rich Aquatic Crop with Economic Potential

Sub: Geo

Sec: Eco Geo

Why in News

Makhana is gaining commercial importance due to its high nutritional value, increasing demand in national and international markets, and government initiatives to boost its cultivation in India.

Makhana:

Scientific Name: Euryale ferox
Family: Nymphaeaceae
Common Names: Makhana (Hindi), Fox Nut, Gorgon Nut (English).
India is the largest producer, contributing approximately 70-80% of the total supply. Other countries cultivating it include China, Japan, Korea, Bangladesh, and Russia.
Makhana seeds are also called as Black Diamond. It is a plant of tropical and subtropical climate.
Makhana plant is considered as a native of South-East Asia and China, but distributed to almost every part of the world.
Uses: Widely consumed as a snack, in curries, and sweets. It has medicinal and nutritional benefits.
Domestic Market: Annual sale of 8,000-10,000 tonnes, priced at Rs. 200-500/kg.
Global Demand: High in countries like the USA, UK, Australia, and New Zealand.
Recognition as a Superfood: Due to its high nutritional value and low glycaemic index.

Climatic Requirements:

Temperature: 20-35°C
Humidity: 50-90%
Annual Rainfall: 100-250 cm
Thrives in stagnant perennial water bodies like ponds, land depressions, oxbow lakes, and ditches with a depth of 0.2-2 meters.
Grows in sediment-rich, muddy, and organic matter-laden soils.

Makhana Cultivation Process:

Cultivated in ponds or shallow agricultural fields (1-2 feet deep) with minimal investment.
New plants sprout from seeds left from previous harvests, reducing input costs.
Farming Techniques: Includes thinning overgrown plants, transplanting in sparse areas, and minimal use of insecticides.
Seed Broadcasting: Direct sowing or natural regeneration.
Post-Harvest Processing: Removing membranous cover, drying, and grading for further processing.

Impact on Soil Fertility:

Makhana cultivation enriches soil fertility over time by adding biomass and nutrients:

Nutrient Composition of Plant: 0.48% Phosphorus (P), 0.40% Potassium (K), 0.31% Nitrogen (N), 2200 mg/kg Iron (Fe), 1000 mg/kg Manganese (Mn), 8.0 mg/kg Copper (Cu), 105 mg/kg Zinc (Zn).
Nutrient Contribution to Soil: Adds 34.35 kg/ha Nitrogen, 56.04 kg/ha Phosphorus, 53.07 kg/ha Potassium, 27.26 kg/ha Iron, and 12.31 kg/ha Manganese annually, enhancing sustainable soil management.

Major Makhana Producing States:

Bihar: Contributes 80-90% of India’s Makhana production. Major districts: Darbhanga, Madhubani, Saharsa, Katihar, Purnea, Supaul, Kishanganj, Araria, Sitamarhi.
Assam, West Bengal, and parts of Uttar Pradesh also cultivate Makhana.

Government Initiatives:

State governments offer up to 50% subsidies to farmers.
NABARD provides financial assistance for cultivation and processing.
Government aims to expand Makhana cultivation to 20,000 hectares.
ICAR Research Complex for Eastern Region has introduced high-yielding varieties like ‘Swarna Vaidehi.’

Challenges in Makhana Cultivation:

Controlling unwanted aquatic vegetation.
Lack of adequate cold storage
Need for new Makhana varieties with better yield and pest resistance.
Ensuring better pricing and global market penetration.

4. Understanding Bacterial Resistance to Antibiotics

Sub: Sci

Sec: Health

Why in News

Antimicrobial resistance has emerged as a major global health concern due to the overuse of antibiotics. In 2021, around 1.2 million deaths worldwide were attributed to antibiotic resistance. In India, hospital surveys indicate that infections caused by drug-resistant bacteria have a mortality rate of 13%.

Antibiotics function:

They are used to kill bacteria or inhibit their growth without harming human cells. Antibiotics target unique bacterial structures or processes essential for survival.

Bacterial Cell Wall:

Unlike human cells, bacterial cells have a peptidoglycan cell wall, providing structural integrity.
Peptidoglycan Structure: Composed of alternating sugar molecules NAG (N-acetylglucosamine) and NAM (N-acetylmuramic acid).
The NAM-NAG chains are linked by peptides, forming a strong mesh-like structure.
Antibiotic Action: The first antibiotic, penicillin, targets the crosslinking step in peptidoglycan synthesis.
Weakening of the bacterial cell wall causes bacterial lysis and death.

Mechanisms of Antibiotic Resistance:

Bacteria have evolved multiple strategies to counteract antibiotics:
- Bacteria produce enzymes like penicillinase, which break down penicillin.
- Bacteria alter their cell wall components, reducing antibiotic effectiveness.
- Some bacteria develop pumps that expel antibiotics from the cell before they take effect.
- Bacteria can form protective biofilms, making them more resistant to antibiotics.

Bacterial Cell Division:

Bacterial growth requires constant cell wall synthesis.
Enzymes called endopeptidases break peptide crosslinks, while lytic transglycosylases (LTs) cut sugar chains.
These processes must be precisely coordinated for successful bacterial division.
Disrupting these mechanisms can offer new avenues for antibiotic development.

Recent Research:

Researchers at CCMB Hyderabad, have discovered that bacteria compensate for the loss of crosslink-cutting enzymes by producing excess LT scissors.
These findings help in understanding bacterial survival mechanisms and developing innovative treatments.
Future strategies may focus on:
- Inhibiting bacterial adaptation mechanisms.
- Developing novel antibiotics targeting newly discovered bacterial enzymes.
- Exploring alternative treatments such as bacteriophage therapy and antimicrobial peptides.

Biofilms:

Biofilms are structured communities of microorganisms that adhere to surfaces and are encased within a self-produced matrix of extracellular polymeric substances (EPS), primarily composed of polysaccharides, proteins, and nucleic acids.
Formation Process:
- Microorganisms first adhere to a surface.
- The initial colonizers proliferate, forming microcolonies.
- The biofilm matures into a complex, three-dimensional structure.
- Cells or clusters detach to colonize new areas.

Biofilms exhibit increased resistance to antibiotics and disinfectants, posing challenges in medical treatments.
The EPS matrix shields the microorganisms from environmental threats, including the host’s immune system.
Biofilms can form on various surfaces, both biotic and abiotic, such as medical devices, natural water systems, and human tissues.
Biofilms are implicated in chronic infections due to their resilience against standard antimicrobial therapies.

5. Are Freebies and Welfare Schemes Different

Sub: Schemes

Sec: Economy

Why in News

The growing trend of freebie-driven politics has sparked debates on its economic and social implications. While some argue that such schemes are essential for welfare, others believe they impose unsustainable fiscal burdens on state governments. The Supreme Court has also taken cognizance of this issue, referring it to a three-judge bench for review.

About Welfare Schemes:

Welfare schemes aim to improve human capabilities and ensure social security.
Examples: Midday meal schemes, Public Distribution System (PDS), and child development programs.
Legal entitlements: The National Food Security Act (2013) transformed key welfare schemes into legal rights.

What Are Freebies?

Freebies are often one-time or non-essential incentives offered to voters.
Examples: Free electricity, cash transfers, and LPG subsidies.
Often criticized for being fiscally unsustainable and politically motivated.

Economic and Social Impact:

Positive Aspects

- Cash transfer programs help women gain financial independence.
- Free food programs enhance nutrition levels, reducing long-term healthcare costs.
- Increases consumer spending, stimulating economic growth.

Negative Aspects

- Increasing subsidy expenditure strains state budgets.
- Freebies may discourage workforce participation and skill development.
- Revenue Deficit Concerns: Example: Delhi’s revenue surplus dropped from ₹14,457 crore (2022-23) to ₹3,231 crore (2024-25) due to rising welfare expenditures.

Supreme Court’s Role:

In 2022, petitions challenged the constitutional validity of freebies in elections.
In S. Subramaniam Balaji vs Government of Tamil Nadu (2013), the Court ruled that such expenditures are legislative decisions aligned with Directive Principles of State Policy.

Revenue Deficit:

Revenue deficit is excess of total revenue expenditure of the government over its total revenue receipts.
It is related to only revenue expenditure and revenue receipts of the government.
Alternatively, the shortfall of total revenue receipts compared to total revenue expenditure is defined as revenue deficit.
Revenue deficit actually indicates that the government’s own earning is inadequate to meet normal functioning of government departments and provision of services. Revenue deficit results in borrowing.
The revenue deficit includes only such transactions which affect the current income and expenditure of the government.
Revenue deficit = Total Revenue expenditure – Total Revenue receipts