Current Affairs – August 04-05, 2024

{GS1 – A&C – Architecture} Quarrying near Hampi

• Context (TH): Increased stone quarrying near Hampi (between Bukkasagara and Anegundi) and the Tungabhadra River has raised safety concerns as it threatens the unique rock formations and landscape of the World Heritage Site (WHS).

• Despite the Tungabhadra Otter Conservation Reserve’s signboard, quarrying continues and the impact of quarrying on the site’s heritage and natural beauty is worrisome.

Source: The Hindu

Read more > Group of Monuments at Hampi

Impacts

• Destruction of Heritage: Damages the ancient rock formations and monuments, affecting the historical and cultural value of Hampi.
• Safety Concerns: Use of explosives poses risks to the structural integrity of monuments and to tourists.
• Environmental Damage: Disrupts the natural landscape and ecosystems, including the otter habitats.
• Tourism Impact: Detracts from the aesthetic and recreational experience for visitors.
• Conservation Challenges: Undermines conservation efforts for the WHS and the local wildlife.

{GS2 – Polity – IC – Federalism} Iniquitous State Transfers

• Context (TH): Opposition Chief Ministers have boycotted and walked out of the NITI Aayog meeting chaired by the Prime Minister alleging that the Centre is discriminating against non-NDA States.

Issues with the state transfers

• Lack of criteria: To decide on how much each State should get leading to arbitrariness and potential bias. This undermines the principles of cooperative fiscal federalism and contributes to regional disparities.
• Lack of transparency: Financial packages for select States, often linked to political developments, have lacked clear rationale and transparency, contributing to perceptions of bias.
• Increased Cess and surcharges: Cesses are often prolonged beyond their intended period, and their revenue is not allocated to States, affecting their financial resources.

More Info > Issues with financial devolution

Way Forward

• Strengthening Institutional Mechanisms: A new, credible body to ensure that transfers outside the Finance Commission recommendations are rule-based and free from discretion.
• Revisiting Devolution and Grants: Suggesting an increase in the share of devolution and effective use of grants to address State-specific needs and regional inequalities.
• Reducing Reliance on Cesses: Advocating for a reduction in reliance on cesses and surcharges and considering an increase in the State’s share in devolution to balance revenue distribution.

More Info > How do states receive income from the central government?

{GS3 – IE – Banking} Digital Economy

• Context (IE): India’s digital economy is poised to constitute 1/5th of GDP 2026 as per RBI report.
  • Digital Economy refers to the economic activities that arise from connecting individuals, businesses, devices, data, and operations through digital technology.
  • India is the third largest digitalised country in the world, after USA and China.

Significance

• Contribution to GDP: Around 10% in 2023, projected to reach 20% by 2026.
• Growth of E-commerce sector: Due to the expansion of the digital economy. The E-commerce market to hit $325 billion by 2030 (Invest India).
• Financial inclusion: Digitalization has improved access to banking services. Eg., PM JanDhan Yojana.

Government Initiatives for digital economy

• UPI, e-Rupi, UPI 123Pay, Central Bank Digital Currency.

Benefits

• Boost accountability in financial transactions, lowers corruption.
• Increased opportunities for employment and entrepreneurship. For example, Flipkart generated more than 1 lakh jobs ahead of it’s Big Billion sales.
• Decrease tax avoidance by utilizing digital payments and transactions.
• Increased convenience for customers to enable financial transactions. For instance, the UPI transactions cross ₹20 trillion in July 2024.
• Enabled businesses to automate operations, reduce costs.
• Enhanced customer experiences through data analytics and digital platforms.

Challenges

• Slow Infrastructure Development: For example, slow progress in the deployment of BharatNet.
• Rural-Urban Digital divide: Only 17% of rural households have internet access through any device, while urban households enjoy a much higher rate of 44%. (India Inequality Report, 2022)
• Data breaches: For example, Aadhaar data breach of 81.5 crore citizens. (Global Risk Report)
• Cyber attacks: India ranked as the third-largest country for phishing attacks after the US and UK.
• Privacy issue: Lack of comprehensive data protection law. For example, the recent Pegasus attack on MPs
• Lack of research and development: India spends only 0.64% to 0.7% of its GDP to R&D.

Way forward

• Introduce strong cybersecurity measures: To safeguard users against fraud and cyberattacks. For example, UK General Data Protection Regulation and Data Protection Act, 2018.
• Allocation of funds: For upgrading digital infrastructure to guarantee consistent internet access.
• Promotion of fintech innovation: To cater to the unique requirements of the Indian market. For example, Paytm soundbox that provides instant notifications when you receive a payment.
• Research and Development: Countries such as Israel spends about 5.56% of their GDP to R&D.

{GS3 – IE – Banking} Unified Payment Interface

• Context (TH): UPI transactions cross ₹20 trillion for third successive month in July 2024.

Benefits

• Financial inclusion: The number of participating banks has increased from 21 to 399 (State of Digital Economy Report).
• Improved transaction efficiency: Allows participants to make transaction 24/7.
• Encouragement to enterprenuers: More entrepreneurs can start and grow their businesses without the need for physical cash handling.
• Transparency: Digital transactions through UPI are easier to track and audit.
• Increased Consumer Spending: As people become more comfortable with digital payments, it leads to increase in spending. For example, the average daily transaction through UPI was about Rs.66,950 crores.

Challenges

• Infrastructure Limitations: Only 15% of rural households have an internet connection (India Inequality Report, 2022).
• Digital Literacy: Only 38% of households in India are digitally literate (India Inequality Report, 2022).
• Security Concerns: The number of digital payment frauds rose from 9,046 to 36,075 in 2023-24 (RBI).
• Regulatory Challenges: The National Payments Corporation of India (NPCI) has set a maximum of ₹1 lakh per transaction and a limit of 20 transactions per day.
• Merchant Acceptance: Merchants in smaller towns and rural areas, still don’t accept UPI transactions.

Way forward

• Expand Payment Acceptance Points: Deploy more mobile Point of Sale systems.
• Technical Upgrades: Update the UPI technology infrastructure to handle high transaction volumes and ensure system stability.
• Incentivizing Merchants: To accept UPI payments.
• 24/7 Customer Service: Ensure reliable and accessible customer support for UPI users.
• Partnerships for Innovation: Encourage collaboration between traditional banks and fintech companies for innovative solution for seamless transaction.
• Boost International transactions: Increase the number of countries that accept UPI transaction.

{GS3 – IE – Securities} Government Bonds

• Context (IE): RBI has decided to exclude new 14-year and 30-year long-term government bonds from the Fully Accessible Route (FAR) amid rising foreign investments.

• The recent changes are part of prudent debt management to prevent the depletion of dollar reserves.
• Existing securities remain accessible under FAR, but new long-term securities require approval.
• Only new government securities with 14-year and 30-year tenors are excluded from FAR.
• This decision follows the inclusion of Indian government bonds (IGBs) in JP Morgan’s emerging markets bond indices (GBI-EM).

Read more > Impact of Indian Government Bonds Inclusion in GBI-EM

{GS3 – IE – Taxes} Income Tax Returns (ITR)

• Context (TH): Most of India’s personal income taxpayers have opted for the new tax regime for the Assessment Year 2024-25.

• ITR filings has increased by 7.5%, reaching a record high of nearly 7.29 crore.
• Out of the total ITR, 5.27 crore were filed under the new tax regime, while 2.01 crore under the old.
• 58.6 lakh returns filed by first-time filers, indicating a widening tax base.
• 43.82% of ITRs were filed on the e-filing portal.

Source: The Hindu

New Tax Regime

• Introduced in 2020 and made the default regime in Budget 2023-24.
• Tax rate slabs reduced from six to five.
• Tax-free income limit raised to ₹3 lakh from ₹2.5 lakh.
• Tax rebate limit increased to ₹7 lakh from ₹5 lakh.
• Standard deduction raised to ₹75,000 from ₹50,000.

Read more > Taxation System in India

{Prelims – Envi – Species} Great Four-Ringed Butterfly

• Context (TH): The Great four-ring butterfly (Ypthima cantliei) was rediscovered in Namdapha National Park, Arunachal Pradesh, after 61 years.

• It belongs to the Satyrinae subfamily within the Nymphalidae family.
• It has dull brown-grey wings with three yellow-ringed eye spots (ocelli) on the hind wings and a large bi-pupilled eyespot on the forewings.

Source: The Hindu

• It is most diverse in China and also found in Nepal, Bhutan, Myanmar, and northeastern India.
• In India, there are 35 species, 23 of which are found in the northeast.

Read More > Butterflies in India

{Prelims – Festivals} Tirumala Brahmotsavam

• Context (TH): Tirumala Tirupati Devasthanams cancels Arjitha sevas and privileged darshans during Tirumala Brahmotsavams.

• It is a 9-day festival celebrated at the Tirumala Tirupati Sri Venkateshwara Temple on the banks of Swami Pushkarini.
• The festival is believed to have been initiated by Lord Brahma to thank Lord Venkateshwara for protecting mankind.
• It includes Garuda Seva, Golden Chariot, Rathotsavam and Vahana sevas.
• Vahanaseva features grand processions with deities on ornate carriers.
• Arjitha Seva is performing seva to the Lord on payment of a fee to the temple.

Read More > Temple Architecture

{Prelims – In News} Asia’s First Breast Milk Bank

• Context (IE): Sion Hospital in Mumbai, Asia’s first breast milk bank, has received donations from over 43,000 mothers and helped 10,500 newborns in five years.

• Donated milk is collected from nursing mothers, tested, pasteurized, and stored at temperatures below -20°C to ensure safety.
• It helps in lowering mortality rates among low birth weight and at-risk newborns.
• Any healthy lactating mother who does not have HIV, hepatitis, or venereal diseases can donate breast milk.

Vatsalya – Maatri Amrit Kosh

• It is a national human milk bank and lactation counselling centre and will collect, pasteurize, test, and store breast milk for infants in need.
• It is established under the Ministry of Health and Family Welfare (MoHFW) with the collaboration of the Norwegian government, Oslo University, and the Norway India Partnership Initiative (NIPI).
• It provides breastfeeding mothers access to lactation counsellors and serves as a teaching, training, and demonstration site for other milk banks.

MAA – Mother’s Absolute Affection Programme

• It is a nationwide program by MoHFW aimed at promoting breastfeeding and providing counseling services through health systems.
• It conducts awareness campaigns, strengthens lactation support at health facilities, and incentivizes facilities with high breastfeeding rates and effective management.

Read More >Breast milk

{Prelims – In News} Vattezhuthu Script

• Context (TH): ASI undertakes epigraphic documentation at Tirupur Thalishwarar temple by using Estampage technique. Among the eight inscriptions identified, one was in Vattezhuthu script.

• Vattezhuthu script was prevalent in South India from 5th to 12th century AD and was developed from the Tamil-Brahmi script.
• Vatteluttu means either “rounded”, “northern”, or “chiseled” script.
• Preliminary analysis finds that the temple is built by a Chera ruler.
• The team also recorded inscriptions from two hero stones, an Ayyanar sculpture, and a Nandi (bull) sculpture located a few kilometres from the temple.

{Prelims – S&T – Defence} Axiom-4 Mission

• Context (TH): India shortlists two astronaut-designates for the upcoming Axiom-4 Mission to the International Space Station (ISS).

• A National Mission Assignment Board has recommended two Gaganyatris, Captain Shubhanshu Shukla and Captain Prasanth Balakrishnan Nair for the Mission.
• Captain Shukla will become the second Indian to travel to space, following Wing Commander (Retired) Rakesh Sharma, who was the only Indian to have gone to space in 1984.
• Axiom Space is an American privately funded space infrastructure provider.
• The Mission is in collaboration with NASA and will be the fourth flight of Axiom Space.
• It benefits India’s Gaganyaan Mission, strengthens ISRO-NASA cooperation, and demonstrates the viability of commercial space stations.

{Prelims – Sci – Bio – Diseases} Gestational Diabetes

• Context (TH): The 18th Annual Conference of the 2024 Diabetes in Pregnancy Study Group India (DIPSI), held in New Delhi.

Major Recommendations

• Prevention of of onset of diabetes: Particularly gestational diabetes (GDM), to combat non-communicable diseases (NCDs).
• Screening: Women for glucose intolerance at eight weeks of pregnancy to detect early gestational glucose intolerance (EGGI).
• Address the impact of hyperglycemia (raised blood glucose), a common effect of uncontrolled diabetes, during pregnancy on the fetus, which can lead to NCDs later in life.
• Collaboration: With healthcare professionals and families to ensure euglycemia (blood glucose level is within the normal range).

Gestational Diabetes Mellitus (GDM)

• GDM: Glucose intolerance that develops or is first diagnosed during pregnancy.
• Affecting 15% of global pregnancies, the prevalence in India ranges from 3.8-17.9%.
• Symptoms: No symptoms, or they may be mild (thirst, frequent urination).
• Risk factor for developing GDM: Increased body weight, decreased physical activity, first-degree relative with diabetes mellitus, Low HDL, Past cardiovascular diseases.
• Consequences: Increases the risk of developing type 2 diabetes in women, and obesity, insulin resistance, and type 2 diabetes in children.
• Treatment: Diet modifications, exercise, and glucose monitoring.