Current Affairs – December 07, 2024

{GS1 – MIH – Personalities} Mahaparinirvan Diwas: Dr. B.R. Ambedkar

• Context (PIB): Mahaparinirvan Diwas is observed annually on December 6 to commemorate the death anniversary of Bharat Ratna Dr. B.R. Ambedkar.
• The term “Mahaparinirvan” is derived from Buddhist texts. It refers to Lord Buddha’s death and signifies ‘nirvana after death.’ It is considered liberation from the cycle of birth and death.

About Dr. B.R. Ambedkar

• He was appointed the Military Secretary to the Maharaja of Baroda but faced untouchability and moved back to Bombay.
• Conferred with the title of “Bodhisattva” at “Jagatik Buddhism Council” in 1954 in Kathmandu, Nepal.
• Voice of the oppressed: He launched the newspaper Mooknayaka and Bahiskrit Bharat (addressed the issues of the “depressed” classes) and established the Bahishkrit Hitkarini Sabha in 1923.
• Historic Movements: Led the Mahad March (1927) for Dalits’ right to access public water sources. Spearheaded the temple entry movement at Kalaram Temple (1930) to challenge caste hierarchies.
• Poona Pact of 1932: Played a pivotal role in replacing separate electorates with reserved Dalit seats.
• Political Engagement: He formed the Independent Labour Party (1936) was formed to represent labourers and the depressed classes.
• Economic Contributions: Ambedkar’s doctoral thesis inspired the establishment of the Finance Commission of India. His ideas were also instrumental in framing the guidelines for the Reserve Bank of India (RBI) Act, 1934 and influencing the creation of the RBI itself.
• Religious Conversion: He declared at the Yeola Conference (1935) that he would leave Hinduism. He embraced Buddhism, along with thousands of followers in Nagpur.
• Dalit Buddhist Movement: He was a key figure in the Dalit Buddhist movement, leading a mass conversion of Dalits to Buddhism in 1956.
• First Law Minister: He was the first Law Minister of Independent India and played an important role in drafting the Indian Constitution.
• Infrastructure and Resource Management: He championed systemic advancements such as the foundation of Employment Exchanges, the establishment of the National Power Grid System, and pivotal projects like the Damodar Valley Project, Hirakud Dam Project, and Sone River Project, showcasing his foresight in infrastructure and resource management.
• Architect of the Constitution: As Chairman of the Constitution Drafting Committee, crafted a Constitution that upheld equality and protected marginalised communities like SCs, STs, and OBCs.
• Bharat Ratna: In 1990, Dr. Ambedkar was posthumously awarded India’s highest civilian award.
• Literary works: ‘Who Were Shudras?’ and ‘The Problem of the Rupee’.

{GS2 – IR – Diplomacy} Three-nation visit of Indian PM

• Context (TH): Indian PM’s recent visit to Nigeria, Brazil and Guyana aimed at strengthening India’s ties across Africa, Latin America and the Caribbean.

Also refer to India-Nigeria Bilateral Cooperation.

Outcomes of the G-20 Summit in Brazil

• The G-20 summit in Rio de Janeiro (November 2024) was crucial for reinforcing India’s leadership in promoting global south priorities.
• Social Inclusion and Development: Initiated the Global Alliance against Hunger and Poverty to mobilise finance and knowledge sharing.
• Enhanced Multilateral Development Banks: Adopted a roadmap to make development banks “Better, Bigger and more Effective” for addressing global needs.
• Climate Finance Challenges: Commitments were made, but progress on climate finance and reforms in UN and WTO discussions remained limited.
• Geopolitical Engagements: Indian PM held discussions with leaders from the U.S., Europe and the Global South, and addressed India-China relations.

Guyana and the Caribbean Engagement

• Strategic Importance: Guyana, with a population of less than one million, has significant strategic and cultural relevance due to its Indian-origin population (40% of the total).
• Bilateral Cooperation: Strengthened partnerships in energy, defence, urban development, digital collaboration, education and food security through 10 MoUs signed.
• Second Caricom–India Summit: Hosted in Georgetown, fostering deeper cooperation among Indian and Caribbean leaders.
• Seven Pillars of Cooperation: Capacity building, Agriculture & food security, Renewable energy & climate change, Innovation, technology & trade, Cricket & culture, Ocean economy, and Medicine & health.
• Local Perception: President Irfaan Ali hailed the Indian PM as “a champion among leaders,” recognising India’s leadership and cooperative stance.

Strategic Implications of the Three-Nation Visit

• Geopolitical Relevance: Enhanced ties position India as a key player in regional stability and counterbalance to China and the U.S.
• Economic and Security Goals: Focused on securing energy resources, boosting trade and strengthening security partnerships.
• Regional Cooperation: Reinforced India’s commitment to supporting development and stability in Africa, Latin America and the Caribbean.

Way Forward

• Implementation Plans: Indian officials must expedite MoU enactment to convert promises into real benefits for India and its partners.
• Continued Engagement: Regular high-level visits, increased investments and active participation in regional dialogues will strengthen partnerships.
• Monitoring and Feedback: Establish mechanisms for periodic review and adjustment of initiatives based on outcomes.
• Challenges and Opportunities: Ensuring follow-through on signed agreements will be key to maintaining momentum and fostering deeper partnerships.

{GS2 – Polity – Bodies – Constitutional} Challenges Before Finance Commission

• Context (TH): The Sixteenth Finance Commission (FC) aims to address fiscal challenges & shape India’s economic trajectory amid global trends like “friendshoring” and “reshoring.”

Mandate of the 16^th FC

• Historical Role: FC has focused on equitable resource redistribution through vertical and horizontal allocations to less-developed states since 1951.
• Tax revenue sharing: Recommend how to distribute tax revenues between the Union government and the states for the five-year period starting April 1, 2026.
• Grants-in-aid: Determine the principles for granting aid from the Consolidated Fund of India to states.
• Urban local govt: Recognise their contribution to economic development & increase allocations to them.
• Beyond Fiscal Arithmetic: The FC’s role is to plan a future where all States contribute to national growth, addressing challenges such as urbanisation and climate resilience.
• Disaster management: Propose improvements to the financing structures for disaster management.
• Climate change: Provide funds for climate mitigation and adaptation measures.
• Fiscal discipline: Advise on fiscal discipline and public expenditure.
• Impact on Growth: The FC’s decisions will influence millions of lives and determine India’s ascent to a leading global economy.

Issues with Current Redistribution Policies

• Horizontal Devolution Challenge: Balancing equitable shares for less-developed states with policies that ensure overall national economic growth and fair distribution.

Challenges for Progressive States

• Demographic Changes: Progressive States like Tamil Nadu face declining tax revenues due to an ageing population, necessitating strategies to manage the rising costs and avoid the “middle-income trap.”
• Urbanisation: Tamil Nadu’s rapid urbanisation, expected to reach 57.3% by 2031, requires dedicated funding for infrastructure to sustain growth and meet urban demands.

Also refer to Issues with Financial Devolution.

Need for Progressive Resource Allocation

• Present Shortcomings: Despite the 15th FC recommending 41% vertical devolution, actual devolution dropped to 33.16% due to rising cess and surcharges by the Union.
• Proposed Reforms: Advocate for a 50% devolution of gross central taxes to empower states with greater fiscal autonomy and promote local development.

Way Forward

• Enhanced Resource Allocation: A performance-based resource allocation approach will empower States to drive national growth.
• Urban and Demographic Strategies: Allocating resources for urban infrastructure and demographic adjustments will ensure progressive States like Tamil Nadu remain growth engines.
• Balanced Strategy: A focus on expanding the national economy with equitable distribution ensures benefits for all States, allowing progressive States to continue driving growth.
• Strengthening Policy Frameworks: A balanced distribution policy and targeted support for high-performing States will foster sustained economic development across India.

Also Refer to Recommendations for the 16th Finance Commission.

{GS3 – Agri – PDS} Anna Chakra Initiative

• Context (PIB): The ‘Anna Chakra’ portal was launched to modernise PDS.

Anna Chakra

• It is a PDS supply chain optimisation tool that enhances logistics efficiency in food distribution.
• The tool was developed through collaboration between Department of Food and Public Distribution, the World Food Programme (WFP), & Foundation for Innovation and Technology Transfer at IIT-Delhi.
• Efficiency: Advanced algorithms identify optimal transportation routes, ensuring the smooth movement of food grains across supply chain nodes from farmers to Fair Price Shops (FPS).
• The tool is integrated with the Railways’ Freight Operations Information System (FOIS) portal through the Unified Logistics Interface Platform (ULIP). It is also integrated with the PM Gati Shakti platform, which maps geo-locations of FPSs and warehouses across states.
• Cost Savings: The initiative is projected to save around Rs. 250 crores annually.
• Environmental Impact: Minimises transportation emissions and contributes to a lower carbon footprint.

Challenges in PDS

• Identification of Beneficiaries: There are significant inclusion & exclusion errors in identifying Below-Poverty-Line (BPL) and Above-Poverty-Line households. The lack of reliable data exacerbates this issue.
• Corruption and Leakages: Widespread reports of corruption and leakages, with middlemen and corrupt officials diverting subsidised goods for sale in the open market or selling them at higher prices.
• Rising Subsidy Costs: The cost of obtaining and shipping food grains is almost six times their retail price, raising questions about the scheme’s sustainability.
• Storage Capacity: There is a shortfall in storage capacity, with 64% of the total storage concentrated in a few states. This can lead to food grain wastage.
• Inconsistent Quality: The ration quality varies, with criticisms about the poor quality of wheat and rice.
• Financial Burden: The rising food subsidy costs, which have more than quadrupled over the years, add to the financial burden.

Government Initiatives and Schemes for Food Security in India

• National Food Security Act (NFSA): The NFSA legally entitles up to 75% of the rural and 50% of the urban populations to receive subsidised food grains through the Targeted Public Distribution System.
• Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): Launched to alleviate hardships caused by the COVID-19 pandemic. This extension will be extended for five years starting January 2024, providing free food grains to beneficiaries.
• PM POSHAN (POshan SHAkti Nirman) Scheme: Aims to improve the nutritional status of children in government and government-aided schools.
• Antyodaya Anna Yojana (AAY): This scheme ensures food security by targeting the most vulnerable segments of society and providing subsidised food grains to eligible households.
• Nutrient-Based Subsidy (NBS) Scheme: It provides subsidies for Phosphatic and Potassic fertilisers.
• NutriHarvest Project: It Aims to improve access to nutritious food and support farmers. It promotes the production and consumption of biofortified crops like iron pearl millet and zinc wheat.

{GS3 – IE – Industry} Reviving India’s Manufacturing Sector **

• Context (TH): India’s manufacturing sector has shown strong growth, driven by the success of the Production Linked Incentive (PLI) scheme.

Significance of the Manufacturing Sector

• Economic Contribution: Accounts for 17% of GVA with the potential to increase to 27% by 2047.
• Employment Generation: MSMEs alone employ about 60 million people.
• Competitiveness: Key to India becoming a manufacturing hub by integrating into global value chains.

Key Achievements

• Manufacturing Growth: Output grew by 21.5%, and GVA increased by 7.3% in 2022-23.
• PLI Scheme Impact: Boosted production, exports & employment in electronics, pharmaceuticals and textiles sectors.
• Sectoral Contributions: Basic metals, chemicals, and food products contributed 58% of manufacturing output, with a growth rate of 24.5%.
• Post-COVID Recovery: Sustained growth despite disruptions, indicating resilience.

Constitutional Provisions Supporting Manufacturing

• Article 39: Promotes equitable resource distribution to prevent concentration of wealth.
• Article 43: Encourages State intervention to ensure a living wage for workers.
• Article 48A: Directs State to ensure sustainable practices in manufacturing to protect the environment.
• Concurrent List: Empowers both Union and State governments to legislate on industries and labour.

Government Policies Supporting Manufacturing

• PLI Scheme: Incentivises production, exports and job creation in sectors like electronics, pharmaceuticals and automobiles.
• Ease of Doing Business Reforms: Simplification of compliance requirements and tax regimes.
• Make in India Initiative: Promotes domestic manufacturing and attracts foreign investment.

Challenges

• High Input Costs: Input prices rose by 24.4% in 2022-23, reducing value addition.
• Import Dependency: Heavy reliance on imported raw materials increases vulnerability.
• Regional Imbalance: Maharashtra, Gujarat, Tamil Nadu, and Uttar Pradesh dominate, accounting for 54% of GVA, limiting industrial spread.
• MSME Constraints: MSMEs struggle to scale due to high capital and operational costs.
• Low Female Workforce Participation (FWP): Various issues restrict women’s contribution to workforce.

Measures to Address Challenges

• Women’s Participation Potential: The World Bank estimates a 9% increase in output if women’s FWP.
• Promote Inclusive Growth: Integrate MSMEs and women into manufacturing by creating childcare facilities and hostels near factories and offering tax breaks to industries with more female employees.
• Boost Domestic Production: Encourage the production of capital goods and essential raw materials to reduce import dependency.
• Simplified Tariff Structure: Implement tariffs of 0-2.5% for raw materials, 2.5-5% for intermediates, and 5-7.5% for finished goods to streamline trade.
• Develop Industrial Clusters and SEZs: Establish industrial clusters and SEZs in underdeveloped regions to promote economic growth.
• Promote Green Practices: Link PLI scheme benefits to eco-friendly manufacturing and support clean energy as part of the NAPCC (National Action Plan on Climate Change) for sustainability.
• Ease of Doing Business: Simplify compliance processes and reduce operational costs to attract investment and improve business operations.
• Support for MSMEs: Lower capital investment thresholds under the PLI scheme and offer financial and technical support to integrate MSMEs into global supply chains.
• Strengthen Infrastructure and Technology: Improve logistics, transportation, and affordable energy access. Invest in automation, AI, robotics, and Industry 4.0.

{GS3 – IE – Taxes} Windfall Gains Tax

• Context (IE): The government ended the windfall gains tax on crude oil production within the country and exports of diesel, petrol, and aviation fuel (ATF). This tax was introduced 30 months ago when global fuel prices surged after Russia invaded Ukraine.

• The “windfall gains tax” was introduced to tax the extraordinary profits earned by oil companies during unusual global market conditions.
• In India, it applied to fuel exports and domestic crude oil production under central excise laws.

Key Features of Windfall Gains Tax

• Review Process: Tax rates were reviewed every two weeks based on international fuel prices and profit margins. In the first review, the tax on petrol exports was set to zero and stayed that way.
• Special Additional Excise Duty (SAED): Charged on domestic crude oil and exports of ATF.
• Combined SAED and Additional Excise Duty (AED): This is applied to diesel and petrol exports, and AED is also called the Road and Infrastructure Cess (RIC).

Why Was Windfall Gains Tax Introduced?

• The main goal was to take a share of excess profits while ensuring enough fuel supply for domestic use.
• Surge in Global Oil Prices:  Global oil prices went up sharply, which caused a rise in domestic oil prices because Indian crude oil prices are linked to international rates.
• Lucrative Margins: High profits in international markets encouraged private refineries to export fuels.
• Global Context: India was not alone imposing a windfall gains tax. Many other countries introduced similar taxes to capture the super-normal profits of energy companies after Russia invaded Ukraine.

Reasons for Scrapping the Windfall Gains Tax

• Opposition from Oil Industry: The Indian oil industry opposed the tax as it limited profitability and discouraged efforts to increase oil production.
• Unpredictable Taxation: Frequent reviews made the taxation regime unpredictable.
• Decline in Revenue: Revenue from the windfall gains tax declined due to the softening of international crude oil and fuel prices.
• Minimal Financial Impact: The removal is expected to have minimal impact on the financials of domestic oil producers like ONGC and Oil India and major fuel exporters like Reliance Industries and Nayara Energy.

{Prelims – Bio – Diseases} Vitamin D Toxicity

• Context (IE | TOI): A study on the health and chemical profiles of hospitalised patients with high calcium levels found that vitamin D toxicity is one of the causes of the rise in such cases.

What is Vitamin D?

• Vitamin D is a group of fat-soluble secosteroids responsible for increasing intestinal absorption of calcium, magnesium, and phosphate.
• The most significant compounds in this group are vitamin D3 (cholecalciferol) and vitamin D2 (ergocalciferol). It is essential for bone health, immune function, and overall well-being.
• Sources: Sunlight, Fatty fish, egg yolks, mushrooms, cheese, etc.

About Vitamin D toxicity

• Vitamin D toxicity, also known as hypervitaminosis D, occurs when the body has excessively high levels of vitamin D. This condition can lead to elevated calcium levels in the blood, known as hypercalcemia.
• Tolerable Upper Intake Levels (UL): The safe daily upper limit for vitamin D for most adults is 4,000 IU. Toxicity is usually associated with intakes exceeding 10,000 IU/day over an extended period.
• Symptoms: Nausea and vomiting, Weakness and fatigue, Frequent urination leading to dehydration, Confusion and disorientation, Bone pain, Kidney damage due to high calcium levels.

Treatment of Vitamin D Toxicity

• Discontinuing vitamin D supplements.
• Hydration to help flush out excess calcium.
• Diuretics to increase urine production and reduce calcium levels.
• Medications like corticosteroids to lower calcium levels.

{Prelims – In News} “Anti-Sabotage” Security Checks in Parliament

• Context (IE): Anti-sabotage security check was in the news.

What Are Anti-Sabotage Checks?

• These refer to security drills conducted to detect and prevent any attempts to compromise the safety and security of parliamentary proceedings by introducing harmful or disruptive objects.
• Conducted by: Central Industrial Security Force (CISF).
• The CISF took over all counterterrorism and anti-sabotage security duties at Parliament Complex in 2024.
• The drill is conducted every morning for around three hours when Parliament is in session.
• Every seat in the Lok Sabha and Rajya Sabha is checked during this period.
• Parliament staff withdraw, and the chamber is handed over to the CISF security team for checks.

Why Are Anti-Sabotage Checks Necessary?

• 2001 Parliament Attack: Highlighted the vulnerability of the Parliament Complex to terrorist threats.
• 2023 Security Breach: Reinforced the need for robust security protocols to protect parliamentary proceedings and personnel.

{Prelims – In News} Ashtalakshmi Mahotsav *

• Context (PIB | PIB | PIB): The PM inaugurated Ashtalakshmi Mahotsav to highlight the vast cultural tapestry of Northeast India, bringing together an array of traditional arts, crafts, and cultural practices.

• The event underscores the region’s economic potential, focusing on sectors like textiles, tourism, handicrafts, and Geographical Indication (GI)-tagged products.
• Organised by: The Ministry of Development of Northeast Region (MoDoNER) and managed by Northeast Handicrafts and Handloom Development Corporation Limited.
• Significance of the Name: The eight states of Northeast India are referred to as ‘Ashtalakshmi‘, representing eight forms of prosperity (Wealth, Purity, Knowledge, etc.) embodied by the goddess Lakshmi.
• Mascot: Poorvi, a young girl representing all eight states of Northeast India, was chosen as the festival’s mascot. It is envisaged that this mascot will remain a symbol of the Northeast region even after the event.

{Prelims – In News} SCAN Portal

• Context (PIB): The SCAN (Subsidy Claim Application for NFSA) portal was launched to streamline subsidy claim processes at the state level.
• SCAN Portal facilitates states’ single-window submission of subsidy claims, streamlining the claim scrutiny and approval by the Department of Food Public Distribution (DFPD) & expediting the settlement process.
• It ensures an automated, rule-based workflow for releasing and settling food subsidies, resulting in faster claim processing and settlements.
• It is important to enhance transparency & reduce bureaucratic hurdles in subsidy management.