Current Affairs – October 25, 2024

{GS2 – IR – Indo-Pacific} Indo-Pacific

Context (IE | TOI): Increasing geopolitical significance of the Indo-Pacific region, focusing on India’s role in promoting a free and inclusive maritime order amid China’s growing assertiveness.

Significance of Indo-Pacific

Maritime Routes and Global Trade of 50% and 40% of oil shipments. India’s 90% of its trade and 80% of its energy imports pass through chokepoints like the Strait of Malacca and the South China Sea.
Economic Hub of Global Growth by contributing approximately 62% of the world’s GDP.
Security and Defence Cooperation: The Indo-Pacific is a hotspot for strategic defence partnerships, addressing rising concerns like piracy, illegal fishing, and disaster management.
Energy Security: The Indo-Pacific controls some of the most critical energy supply routes, ensuring the flow of oil and LNG to global markets, Such as the Strait of Hormuz and the Strait of Malacca.

India’s Role in the Indo-Pacific

Countering China’s Influence: India works to counterbalance China’s growing dominance through the Quad by advocating for a free and open Indo-Pacific and ensuring maritime security.
Promoting a Free and Open Indo-Pacific: India advocates for a rules-based international order, freedom of navigation, and respect for territorial integrity.
SAGAR Doctrine (Security and Growth for All in the Region) emphasises maritime cooperation, economic growth, and security in the Indian Ocean. E.g. India’s collaboration on the Chabahar Port in Iran.
ASEAN Centrality and Multilateralism: India actively participates in ASEAN-led platforms, like the East Asia Summit and the Indian Ocean Rim Association (IORA), promoting multilateral diplomacy.
Defence and Maritime Security: India’s naval cooperation with countries like Japan, Australia, and the U.S., through bilateral and multilateral exercises such as the Malabar naval exercise.
Sustainable Development and Connectivity Initiatives: India promotes infrastructure development and regional connectivity through initiatives such as the Indo-Pacific Oceans Initiative (IPOI).

Challenges and Threats in the Indo-Pacific

Chinese Assertiveness and Territorial Disputes in the South and East China Seas undermine sovereignty and stability, disrupting freedom of navigation. E.g. Artificial island-building.
Militarization and Rising defence spending and alliances like AUKUS increase the risk of conflict.
Non-Traditional Security Threats: Piracy, climate change, cyber security risks and natural disasters strain regional resilience. E.g. Climate-related threats endanger small island nations.
Divergent Strategic Interests: Conflicting interests of major powers hinder unified regional approaches. E.g. U.S.-India-Japan’s free and open Indo-Pacific vision clashes with China’s influence-driven strategy.
Economic Dependence on China: Heavy reliance on China impacts countries’ autonomy and strategic alignment. E.g. Nations integrated into China’s BRI face economic vulnerabilities.
Supply Chain Vulnerabilities in critical chokepoints like the Malacca Strait impact global trade.

Way Forward

Strengthen Quad Cooperation: Enhance Quad’s focus on security, infrastructure, and disaster management. E.g. Vaccine diplomacy and as Quad-at-sea Ship Observation Mission.
Fostering Economic Connectivity: Promote initiatives that enhance trade routes and economic ties within the Indo-Pacific. E.g. Asia-Africa Growth Corridor.
Encouraging Multilateral Dialogue and Conflict Resolution: Utilize forums like the East Asia Summit and the ASEAN Regional Forum to engage with multiple stakeholders on regional stability.
Strengthening Economic Partnerships: Strengthening ties with countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) can expand trade opportunities.
Create resilient supply chains through diversified partnerships. Collaborate on the Supply Chain Resilience Initiative (SCRI) among key nations.

{GS2 – Polity – IC – Federal Structure} Industrial Alcohol regulation

Context (TH | IE): SC (9-judge bench) upheld the States’ power to regulate industrial alcohol.

Highlights of judgement

States’ Right to Regulate: SC upheld States’ authority to regulate industrial alcohol under Entry 8 of the State List, expanding “intoxicating liquor” to include industrial alcohol.
Dismissed the Centre’s claim of exclusive control under Entry 52 of the Union List, affirming that states retain legislative competence over alcohol regulation, which is crucial for public health.

Challenges

Regulatory Overlap: Conflicts arise between Union and State authorities over control.
Enforcement Challenges: In 2021, over 20,000 illegal alcohol production cases, illustrating enforcement gaps and the need for stronger state regulations.
Judicial Interpretations: The ruling overturned previous limitations on states’ powers, reaffirming their authority to regulate industrial alcohol for public health.
Supply Chain Regulation: States like Bihar, with prohibition laws, face challenges preventing industrial alcohol’s illicit use, with significant seizures in 2023, underscoring regulatory gaps.

Implications of Industrial Alcohol Regulation

States with Alcohol regulatory authority could more effectively combat illegal liquor production. For instance, Bihar seized over 11 lakh litres of illegal liquor in 2021 following its strict alcohol ban.
Taxation and Revenue: Alcohol excise duties are crucial for state finances. In 2022, Karnataka earned ₹36,000 crore from alcohol taxes.
Industry Conflicts: The pharmaceutical sector, valued at $42 billion in 2020, relies on industrial alcohol. Stricter regulations could disrupt industrial output, affecting this critical industry.
Public Health Risks: Stricter state regulations could prevent tragedies similar to the 2022 Gujarat Hooch tragedy, which resulted in 40 deaths from illicit alcohol.
Federalism: Allowing states to regulate industrial alcohol could enhance cooperative federalism, affirming their legislative rights under the State List and preserving the federal balance in India.

Way Forward

Establish Clear Regulations: Create a legal framework defining Centre and State powers over industrial alcohol, avoiding overlaps and ensuring state autonomy.
Promote Cooperative Federalism: States like Kerala and Maharashtra have highlighted the need for joint strategies addressing public health without central overreach.
Public awareness campaigns like Nasha Mukt Bharat Abhiyaan about dangers of industrial alcohol.

Context (IE): October 24 has been observed as World Polio Day. Rotary International established the day to commemorate the birth of Jonas Salk, who led the development of the first Polio vaccine.

India’s polio eradication is a success, from a polio-endemic country to a polio-free status.

Initiatives Taken by Government to Eradicate Polio

Pulse Polio Immunization (PPI) Programme: Launched in 1995 under the WHO‘s Global Polio Eradication Initiative to eliminate polio spread through mass immunisation targeting children under five.
Intensified IPPI to improve vaccine coverage in densely populated urban areas & high-migration zones.
National Polio Surveillance Project (NPSP): Launched in 1997, it is a joint effort by India and WHO to monitor acute flaccid paralysis (AFP), a primary indicator of polio.
Universal Immunization Programme (UIP): India’s largest immunisation program, including polio vaccines and other essential immunisations.
Social Mobilisation Network (SMNet): This network raises awareness about polio and promotes vaccine acceptance through Community health workers.
Routine Immunization Intensification (Mission Indradhanush): Launched in 2014, this program aims to improve immunisation coverage by Vaccinating children who missed doses.
mOPV (Monovalent Oral Polio Vaccine) & bOPV (Bivalent Oral Polio Vaccine): Tackle specific poliovirus strains with tailored vaccines.
Cross-Border Polio Eradication: Prevent cross-border poliovirus transmission, especially in high-migration areas, through vaccination campaigns with neighbouring countries like Pakistan and Bangladesh.

Challenges

High Population Density: India’s dense population, especially in urban areas, made it difficult to achieve complete immunisation coverage.
Geographical and Logistical Barriers: Limited access to healthcare in remote, rural, and geographically challenging healthcare facilities led to low immunisation rates in some regions.
Vaccine Hesitancy and Misinformation: Cultural beliefs, religious misconceptions, and myths about the polio vaccine led to hesitancy.
High Migration and Mobility: Migrant populations, especially in border states, were difficult to track and vaccinate.
Sanitation Issues: Poor sanitation and unsafe water sources facilitated the spread of the poliovirus.
Emerging Vaccine-Derived Poliovirus (VDPV) Cases: Vaccine-derived poliovirus (VDPV) cases can occur in under-immunised communities, where the weakened virus in oral polio vaccines mutates.

Read More > Polio

Context (TH | IE): National Pharmaceutical Pricing Authority (NPPA) approved the price hike for eight critical drugs including Asthma, TB, bipolar disorder, glaucoma.

Para 19 of the Drug Price Control Order (DPCO) 2013, citing “extraordinary circumstances” and “public interest” as reasons for the price increase by the government.

Reasons for Drug Price Hike in India

Rising Costs of Active Pharmaceutical Ingredients (APIs): Many drug formulations rely on imported APIs, and fluctuations in global supply chains have driven up costs, impacting production viability.
Increased Production Costs: Rising raw materials, energy, and logistics costs have made it challenging for manufacturers to maintain production at existing prices.
Exchange Rate Fluctuations: Changes in exchange rates have increased the cost of materials imported, further affecting the overall production expenses of essential drugs.
Risk of Discontinuation: Several manufacturers applied to discontinue certain formulations due to unavailability, which could threaten the availability of essential drugs in the market.
Ensuring Availability of Essential Medicines: The government aims to prevent a shortage of essential drugs for treating common conditions by reducing unnecessary over-the-counter purchases.
Historical Precedent: Similar increases were sanctioned in 2019 and 2021, where prices were raised by 50% to ensure continued access to critical medications.

Advantages of Drug Price Hike

Ensures Drug Availability: By allowing a 50% price increase, the NPPA aims to prevent shortages in essential drugs used to treat chronic conditions like asthma and tuberculosis.
Sustains Public Health Programs: Many affected drugs, such as streptomycin for tuberculosis (TB) and salbutamol for asthma, are first-line treatments.
Encourages Manufacturer Participation: With higher prices, manufacturers are likelier to continue producing essential drugs.
Balances Affordability and Access: The 50% cap on price hikes ensures that essential medications remain affordable for patients while balancing financial sustainability.
Mitigates Effects of Rising Input Costs by increased import costs for APIs, coupled with the weakened rupee. Many companies reported difficulties maintaining drug supply without price adjustments.
Adapts to Global economic changes and inflation pressures.
Supports Small and Medium Enterprises (SMEs): The price hike provides financial relief, allowing them to compete in the market and continue essential drug supply.
Reduces Import Dependency by supporting domestic drug production through appropriate pricing, fostering a more resilient pharmaceutical sector in the face of fluctuating exchange rates.

Challenges of the Drug Price Hike

Affordability and Accessibility Challenges: The price hike may render essential drugs unaffordable for low-income and rural patients, particularly those needing long-term treatments like tuberculosis.
Increased Healthcare Costs for Chronic Conditions like bipolar disorder, TB and asthma could disproportionately affect long-term treatments.
Public Health Risks from Treatment Non-Adherence: With higher drug prices, there is a risk of patients skipping doses, which leads to antimicrobial resistance and drains healthcare system,
Increased Pressure on Government Hospitals: Patients may shift to government facilities for affordable care lead to longer wait times and resource shortages, particularly for life-saving medications.
Impact on India’s TB Eradication Goals by 2025: Increased drug prices could lead to lower adherence rates, potentially leading to the emergence of drug-resistant strains.
Risk of Patients Turning to Unsafe Alternatives: Rising costs may drive patients toward cheaper, unregulated drugs that lack proper efficacy or safety, heightening the risk of adverse effects.

Way Forward

Gradual Price Increase & Subsidies: Implement gradual hikes with targeted subsidies for essential drugs like tuberculosis and asthma treatments to protect low-income patients.
Boost Domestic API Production: Strengthen domestic API manufacturing through Production-Linked Incentives (PLI) to reduce import dependency and stabilise production costs.
Expand Jan Aushadhi Scheme: Increase access to affordable generics under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), especially in rural and underserved areas.
Enhanced Insurance: Broaden Ayushman Bharat to cover essential drugs for chronic illnesses.

Context (IE): The Gram Panchayat-Level Weather Forecasting is a joint program of the Panchayati Raj Ministry, India Meteorological Department (IMD), and the Ministry of Earth Sciences.

Objective:
- Empowering rural communities and enhancing disaster preparedness at the grassroots will benefit farmers and villagers nationwide.
- Strengthen grassroots governance and promote sustainable agricultural practices, making rural populations more climate-resilient and better equipped to tackle environmental challenges.
It will provide hourly forecasts on temperature, wind speed, cloud cover, rainfall, and relative humidity on the e-GramSwaraj, Gram Manchitra portals & Meri Panchayat app.

{GS3 – S&T – Space} Venture Capital Fund

Context (PIB): Rs.1,000 Cr Venture Capital Fund for the Space Sector under IN-SPACe was approved.

What is a Venture Capital Fund?

It is a pooled investment fund that manages the capital of investors who seek to invest in startups and early-stage companies. These funds are usually managed by venture capital firms that deploy the capital to various high-risk ventures.
It aims to generate substantial returns by investing in companies with strong growth potential.

Types of Venture Capital Funding

Seed Capital: Initial funding for market research and product development.
Startup Capital: Financing to complete product development and start operations.
Early Stage Capital: Funds to expand operations, hire staff, and increase production.
Expansion Capital: Investments to scale operations, enter new markets, or increase production.
Late Stage Capital: For stable and growing businesses that support further expansion or development.

Difference Between Venture Capital and Private Equity

Feature	Venture Capital	Private Equity
Stage of Investment	Early to mid-stage	Mature businesses
Company Type	Startups and small businesses	Established businesses
Investment Size	Relatively smaller	Larger
Equity Stake	Minor to Major	Controlling stake
Risk Level	Higher risk	Lower risk
Investment Horizon	Longer-term	Shorter to medium-term
Management Involvement	Active role in management	Varies: Can be active or passive

{Prelims – Awards} National Water Awards (NWA)

Context (PIB): Department of Water Resources, River Development and Ganga Rejuvenation, Ministry of Jal Shakti, has launched the 6^th NWA (2024) on the Rashtriya Puraskar portal.

It aims to sensitise the public to the importance of water and motivate them to adopt the best water usage practices, accomplishing the government’s vision of ‘Jal Samridh Bharat’.
Eligibility for the awards: Any State, District, Village Panchayat, urban local body, School/College, Institution (other than school/college), Industry, Civil society, or Water User Association that has done exemplary work in the field of water conservation and management is eligible to apply.

Rashtriya Puraskar Portal is an initiative to bring together all National Awards of the Govt of India under one digital platform reflecting transparency, accountability, and public partnership.

{Prelims – Envi – Species} Giant Salmon Carp (Aaptosyax grypus)

Context (IE): Giant Salmon Carp, thought to be extinct, was spotted three times in recent years.

It is a species of freshwater fish. It is part of the “megafish” family – fish exceeding 30 kilograms.
It is endemic to the middle reaches of the Mekong River in northern Cambodia, Laos and Thailand.

Credits: Wikipedia

Threats: Dams built throughout the Mekong system, climate change, overfishing, etc.
Conservation Status: IUCN: Critically Endangered

About Mekong River

It originates from the Sanjianyuang in the Tibetan Plateau in China and rises in southeastern Qinghai province, China.
It passes through China, Myanmar, Laos, Thailand, Cambodia and Vietnam and drains into the South China Sea via the complex Mekong Delta in Vietnam.

Credits: South China Morning Post

It is the longest river in Southeast Asia, the 7^th longest in Asia, and the 12^th longest in the world.
It boasts the world’s largest inland fishery. It is second only to the Amazon River in fish biodiversity.

{Prelims – S&T – Defence} SIMBEX 2024

Context (PIB): 31^st edition of the Singapore-India Maritime Bilateral Exercise (SIMBEX) scheduled at the Eastern Naval Command at Visakhapatnam.

SIMBEX, which began as ‘Exercise Lion King’ in 1994, has evolved into one of the most significant bilateral maritime collaborations between the Indian Navy and the Republic of Singapore Navy.