Current Affairs – November 10-11, 2024

{GS2 – MoF – Initiatives} National MSME Cluster Outreach Programme

Context (PIB): The Finance Minister launched the National MSME Cluster Outreach Programme. It aims to ensure access to Financial Services and promote the growth of MSMEs nationwide.

Organised By: Ministry of Finance, SIDBI and Department of Financial Services.

Tarun Plus category of Pradhan Mantri Mudra Yojna (PMMY)

It is a new loan category under the PMMY that allows entrepreneurs to access loans between ₹10 lakh and ₹20 lakh.
“Credit Guarantee Fund for Micro Units” will provide guaranteed coverage for these loans.
Purpose: It was introduced to promote entrepreneurship in the country by facilitating the growth and expansion of emerging entrepreneurs.
Eligibility: To be eligible for the Tarun Plus category, entrepreneurs must have previously availed and successfully repaid loans under the Tarun category.

Mudra Loan

Source: PIB

{GS2 – Polity – IC – Federalism} Net Borrowing Ceiling on States by Centre

Context (TH): Kerala has challenged the Centre’s imposition of a Net Borrowing Ceiling (NBC) in the Supreme Court, citing concerns about fiscal autonomy and state sovereignty.
Supreme Court will review if the Centre’s borrowing limits infringe on federal principles and States’ fiscal autonomy, also examining any conflicts with the RBI’s role as public debt manager.

Net Borrowing Ceiling

Purpose: Limits borrowings of States from all sources, including open market borrowings, loans from financial institutions, and liabilities from public accounts.
Extended Coverage: Includes debt by state-owned enterprises if serviced from the State’s budget.
Imposition: The Centre enforces the NBC under Article 293(3) of the IC. It has significant discretion over whether States can raise loans and impose conditions as deemed necessary.

Borrowing Powers under the Constitution

Article 292 & 293:
- Centre’s Power: Article 292 grants the Centre authority to borrow upon the security of the Consolidated Fund of India.
- State’s Power: Article 293 empowers States to borrow on the security of Consolidated Fund of State, subject to conditions.
Repayment Restrictions: States must obtain Centre’s consent if they have outstanding loans or guarantees from the Centre.

Kerala Case

NBC on Kerala: The Centre imposed NBC on Kerala in 2023, limiting its borrowing to 3% of its projected Gross State Domestic Product (GSDP) for FY2023-24.
Coverage of NBC: Includes all borrowing avenues—open market loans, financial institution loans, and liabilities from the State’s public account.
Extended Restrictions: To prevent States from bypassing borrowing limits through state-owned enterprises (e.g., Kerala Infrastructure Investment Fund Board), the ceiling was extended to include borrowings by these entities.

Kerala’s Concerns and Constitutional Issues

Impact on State’s Finances: The NBC severely limits Kerala’s borrowing capacity, affecting essential expenditure like pensions and welfare schemes.
State-owned Enterprises’ Debt: KIIFB funds major infrastructure projects and its debt is now considered part of the state’s borrowing limit.
Fiscal Autonomy Violation: Kerala argues that including public account balances (e.g., provident funds, small savings) under Article 266(2), in the NBC violates its constitutional rights.
Kerala asserts that Parliament cannot legislate on ‘public debt’ of States under Entry 43 of State List.
Constitutional Challenge: Kerala’s case revolves around the alleged encroachment on the state’s fiscal autonomy guaranteed under Article 293, leading to a legal interpretation of this provision.

Justification by the Central Government

Article 293(3) of IC: States need Centre’s consent to borrow if any part of previous loans from the Centre remains outstanding.
15th Finance Commission’s Recommendation: It emphasized fiscal discipline and warned against off-budget transactions, recommending restraint on additional borrowing.
Transparency Aim: The Centre’s imposition of the NBC is intended to ensure transparency in borrowing and prevent hidden liabilities.

Impact of NBC on States

Fiscal Decentralization Challenges: The borrowing cap threatens the principle of fiscal decentralization, which promotes financial autonomy for States to achieve balanced and equitable development.
Restricted Developmental Expenditure: States’ ability to fund vital social and economic services is hampered, negatively impacting development projects.
Limited Revenue Sources: States have limited control over taxation powers, and additional revenue sources like Cess and Surcharge are not shared, further restricting fiscal flexibility.

Way forward in Strengthening Cooperative Federalism

Historical Context: Government of India Act 1935 included safeguards on loan grants and conditions, which were not carried forward into the Constitution. These could provide valuable lessons today.
Cooperative Federalism Risk: The Centre’s fiscal limits should honor State autonomy, as strict borrowing caps hinder cooperative federalism by limiting States’ financial management and development efforts.
Role of a Commission: Following Ananthasayanam Ayyangar’s suggestion, a commission similar to the Finance Commission should be established to balance fiscal discipline with State autonomy.
Fiscal Responsibility & Budget Management (FRBM): Kerala’s commitment to reduce its fiscal deficit to 3% of GSDP by 2025-26 is a key element of its fiscal discipline. However, the imposition of external fiscal controls may hinder this goal.
Guidelines for the Centre’s Powers:
- Transparency: Borrowing decisions should be transparent and made public.
- Consultation: A consultative process with States should precede the imposition of borrowing limits.
- Equity: Borrowing terms should be uniformly applied across States to avoid bias.
- Respect for Autonomy: Fiscal restrictions should not hinder a State’s ability to manage its finances and ensure sustainable development.
Balanced Fiscal Management: Adhering to guidelines that ensure transparency, consultation and equity in borrowing decisions will foster a cooperative federalism approach and strengthen fiscal management.

Context (PIB): In the QS World University Ranking: Asia (2025), Two Indian institutions made it to the top 50, and seven are in the top 100. It evaluates 984 institutions across Eastern, Southern, South-Eastern, and Central Asia.

India has the highest number of institutions in the rankings, highlighting various emerging and well-established universities. India dominates the top ten universities in Southern Asia, with seven institutions in the list.

India’s Performance in the Top Tiers

Top 50: IIT Delhi (44th) and IIT Bombay (48th) are in the top 50.
Top 100: IIT Madras (56), IIT Kharagpur (60), Indian Institute of Science (62), IIT Kanpur (67), and University of Delhi (81) are in the top 100.
Top 150: Other notable institutions include IIT Guwahati, IIT Roorkee, Jawaharlal Nehru University, Chandigarh University (120), UPES (148), and Vellore Institute of Technology (150).

Source: QS

Noteworthy Achievements from India

University of Petroleum and Energy Studies (UPES) improved, climbing 70 spots to 148th.
University of Delhi improved from 94th to 81st, with a high score of 96.4% in the International Research Network. Anna University achieved a perfect score of 100 in Papers per Faculty, emphasising its high research output.
North Eastern Hill University and the University of Agricultural Sciences, Bangalore, attained a perfect score of 100 in the Faculty-Student indicator, demonstrating top-tier academic credibility.

The QS World University Rankings 2025 included 46 Indian institutions, compared to just 11 in 2015—a 318% increase over the last 10 years among G20 nations.

{GS3 – Envi – UNFCCC} COP 29 Climate Summit: A ‘Finance COP’

Context (TH | TH): The Baku climate summit (COP 29) aims to establish robust financial frameworks to support climate action, focusing on climate finance for the first time in over a decade.

Agenda of COP 29

Setting New Climate Finance Goals

Climate Finance Target: Establishing a new collective climate finance goal (NCQG) to replace the previous $100 billion baseline.
Proposed Target: Anticipated increase to $1 trillion annually to support developing nations.
Funding Sources: Contributions expected from wealthy nations, potential participation from emerging economies like China and India.
Paris Agreement Obligations: Discussions on updating climate action plans and achieving NCQG commitments by 2025.

Climate Finance Action Fund (CFAF)

Fund Source: Voluntary contributions from fossil fuel producers and companies, with initial contributions from Azerbaijan.
Revenue Allocation: 50% for climate projects in developing countries and 50% to support national climate action plans.
Operational Conditions: Requires commitments from at least 10 shareholder countries for fund activation at $1 billion capitalization.

Loss and Damage Fund

Objective: Assist vulnerable countries facing climate-induced disasters like floods and droughts.
Recent Development: Approximately $660 million mobilized, headquartered in the Philippines.
Focus in Baku: Scaling up funds for loss and damage compensation and ensuring long-term support.

Major Proposals and Contributions from Azerbaijan

Energy Storage and Green Hydrogen: Global Energy Storage capacity to be increased sixfold by 2030 and Green Hydrogen Market to be promoted as an alternative energy source.
Digital Carbon Footprint Reduction: Implement measures to minimize carbon emissions from digitization and data centers.

Key Challenges at COP 29

Differentiation in Responsibilities

Controversy Over Contributions: Disputes over requiring developing countries to contribute financially.
Developing Nations’ Stance: Focus on historical emissions; developed ones are urged to lead financially.

The $100 Billion Climate Finance Shortfall

Unmet Promises: Developed countries’ pledge to mobilize $100 billion annually remains unfulfilled.
Definition and Disbursement Issues: Lack of clear climate finance definitions and delays in fund distribution create mistrust.

Carbon Markets and Trading Mechanisms

Carbon Credit Trading: Developed nations may fund renewable projects in developing countries in exchange for carbon credits.
Unresolved Rules: Clear guidelines for carbon markets are yet to be established, impacting global climate finance.

Transparency and Accountability in Reporting

Biennial Transparency Reports (BTRs): Expected submissions to show progress in national climate commitments.
Transparency Challenge: Countries are urged to increase clarity in climate finance usage and commitment tracking.

India’s Stance on Climate Justice and Accountability

Climate Finance Demand: India calls for developed nations to provide $1 trillion annually by 2030 to support climate action, ensuring financial accountability for global climate challenges.
Equity in Climate Responsibility: Emphasizing historical emissions, India asserts that developed countries should take a larger responsibility in addressing climate change, aligning with the Paris Agreement.
Fair Climate Action Advocacy: India’s position calls for a global approach where financial aid and climate actions are proportional to both historical and present contributions to global emissions.
Defending Developing Nations: India highlights the need for developed nations to lead in financing climate solutions, given their historical emissions and greater resources.
Sustainable Development Goals: India advocates for a balanced approach that fosters development in emerging economies without compromising environmental goals.

Potential Impact of U.S. Political Changes on COP 29

Possible Disruptions due to Trump’s Return: A potential U.S. withdrawal from the Paris Agreement could undermine collective climate efforts and disrupt global financial commitments.
Global Implications: It could create setbacks in developed nations’ unity on climate finance, affecting negotiations at COP 29.

Expected Outcomes and Way Forward

Establishing Financial Mechanisms for Climate Action

Operational Climate Finance: Expectation for COP 29 to formalize clear, binding financial frameworks.
Collaborative Financial Models: Developed nations to lead, with potential contributions from wealthier emerging economies.

Fostering Consensus on Responsibility Sharing

Global Burden Sharing: Ongoing deliberations on how to distribute financial responsibility equitably, considering economic capacities and historical emissions.
Enhanced Transparency: Establishment of stronger oversight to ensure accountability in fund allocation and usage.

Adoption of Renewable Energy Goals

Renewable Transition Goals: Pledge to triple renewable energy capacity and double energy efficiency to reduce reliance on fossil fuels.
Long-Term Renewable Benefits: Highlighting job creation, economic growth, and sustainability in the global renewable shift.

{GS3 – IE – Industry} Calling Out Exploitative Labour Dynamics on Platforms

Context (TH): Women gig workers launched “Black Diwali” digital strike to protest exploitation and demand fair conditions.

A gig worker is a person who engages in income-earning activities outside of a traditional employer-employee relationship and in the informal sector and can be classified into:
1. Platform workers: whose work is based on online software apps or digital platforms.
2. Non-platform gig workers are casual wage workers, working part time or full time.

Core Issues Faced by Gig Workers

Algorithmic Surveillance and Control: Gig platforms use complex AI algorithms that tightly control and monitor worker performance with limited transparency.
Restrictions from Auto-Assigned Jobs: Automated “auto-assigned” jobs restrict workers’ freedom to choose assignments and penalize refusals.
Gender-Based Job Segmentation: Many platforms reinforce traditional gender roles, directing women primarily toward lower-paid, caregiving and housekeeping jobs.
Digital Bias and Gender Inequality: Digital biases subtly relegate women to specific roles, exacerbating gender inequalities within the gig economy.
False Promises of Flexibility: Platforms falsely advertise gig work as flexible but often impose hidden pressures such as transportation costs and meeting strict targets.
Economic Vulnerability Exploited: Economic vulnerability drives marginalized workers into accepting low-paying gig roles due to limited job alternatives.
Challenges to Collective Organization: Gig work’s individualistic and dispersed nature makes collective organization challenging, and platforms discourage unionization efforts.
Other Issues

Structural Issues

Digital Patriarchy: Women tend to use digital platforms less frequently and less proficiently than men, leading to a higher engagement of men in the gig economy compared to women.
Absence of Data Privacy and Labour Laws: Lack of robust data privacy and labor laws allows companies to exploit gig workers without accountability.
Limited Regulation: Weak regulatory frameworks allow platform giants to escape scrutiny.
Loneliness/Alienation: Especially for designers, copywriters etc. working from home.
Code on Social Security 2020: Gig workers find a place as unorganized sector workers in this code but the actual security cover remains vague and implementation of the code remains poor.
Lack of possibility of upward mobility within an organization.
Unrealistic Work Demands: Women gig workers are burdened with unrealistic demands, resulting in financial instability and a cycle of exploitation.

Steps Taken to address Challenges for Gig Workers

RAISE Approach for operationalizing the Code on Social Security (CoSS), 2020: Aims for equitable social security schemes considering varied nature of work and platforms, and facilitates worker enrollment through awareness campaigns and ensuring easy benefit access.
Rajasthan Gig and Platform Workers (registration and welfare) Act, 2023: Grants platform workers a unique ID for benefits, establishes a Welfare Fund fueled by transaction fees, and creates a tripartite board (govt, companies, workers) to manage social security.

Way forward

Strengthening Grassroots Organization: Empower gig workers through grassroots unions like GIPSWU to advocate for fair labor laws and policies, ensuring collective action for better working conditions.
Implementing Policy Reforms: Advocate for comprehensive legal frameworks that ensure fair wages, social security, and accountability for platform companies.
Fostering International Solidarity: Promote global collaboration among gig worker communities to address shared challenges, pushing for stronger policies and legal protections.
Extend Social Security benefits for gig and platform workers as envisaged under Code on Social Security, 2020.
Skill Development for platform jobs.
Social Inclusion: Fiscal incentives like tax rebates or start-up grants, for companies with about 1/3rd of their workforce as women or people with disabilities.
Higher share of female managers and supervisors in the organization to ensure that communication to workers doesn’t perpetuate gender stereotypes.
Platform India Initiative on the lines of Startup India Initiative: accelerating platformisation by simplification and handholding, funding support and incentives, skill development, and social financial inclusion.
Self-employed individuals selling regional and rural cuisine, street food etc., may also be linked to platforms.

{GS3 – IE – Industry} ‘EV as a Service’ Programme

Context (PIB): Union Minster launched ‘EV as a Service’ programme of Convergence Energy Services Limited (CESL), a subsidiary of Energy Efficiency Services Limited (EESL).

It aims to target the deployment of 5,000 electric cars in government ministries and public sector units over the next two years. It aligns with India’s goal of net zero by 2070 & PM E-DRIVE Scheme.

Challenges for the EV market in India

Charging Infrastructure: Limited charging stations, especially in rural and non-urban areas, make long-distance travel difficult.
High installation costs: Charging points set-up and maintenance are expensive; hence, the operators’ interest is minimised.
Range & Charging Time Issues: Compared to gas refuelling, EVs take hours to recharge.
High Upfront Cost of EVs: Battery and tech costs make EVs pricier than traditional vehicles, making affordability a hurdle. Also, Battery tech is still costly to produce, keeping EV prices elevated.
Limited-Service Network: Trained EV technicians and service centres are scarce, and maintenance is challenging for owners.
Supply Chain Dependency: Reliance on imports of lithium and cobalt exposes EV production to global supply fluctuations.

Initiatives Related to Electric Vehicles in India

New Electric Vehicle Policy 2024: It aims to position India as a prime manufacturing hub for EVs.
Electric Mobility Promotion Scheme (EMPS) 2024: It aims to increase the sale of electric two-wheelers, three-wheelers and e-rickshaws.
National Mission on Transformative Mobility and Storage: This mission aims to localise the production of EVs and their components within the country.
EV30@30 campaign: It aims for at least 30% of new vehicle sales to be electric by 2030.
FAME-II: It aims to incentivise the purchase of EVs & establish the necessary charging infrastructure.
PLI Scheme: It aims to manufacture Advanced Chemistry Cells (ACC) to bring down battery prices.
National Electric Mobility Mission Plan (NEMMP): This plan aims to promote the adoption of electric and hybrid vehicles in the country.
E-Amrit portal: Launched at COP26 Summit in Glasgow as one-stop destination for all EV information.
Green license plates: The Ministry of Road Transport & Highways has announced them for EVs.
GST restructuring: GST on EVs has been reduced from 12% to 5%; GST on chargers/ charging stations for electric vehicles has been reduced from 18% to 5% by GST Council.
Go Electric campaign: To create awareness of the benefits of EVs and EV charging infrastructure.

{Prelims – In News} 4B Movement

Context (IE): Social media saw the rise of the ‘4B’ movement, where women swear off sex & marriage with men to protest patriarchal & often misogynist institutions & practices after US President election.

What is the 4B movement?

Origins and Meaning: The 4B movement began in South Korea around 2016 and gets its name from the Korean language. “4B,” representing the four “no’s”-bihon (no marriage), bichulsan (no childbirth), biyeonae (no romance), and bisekseu (no sexual relationships).
Ideology: This radical feminist movement believes that heterosexual relationships usually serve to reinforce systems of oppression against women. It advocates that women break away from the norm of these traditional roles for variances of independence and happiness.

{Prelims – In News} Digital Population Clock

Context (TH): Bengaluru launches digital population clock at Institute for Social and Economic Change. It is a collaboration between ISEC and the Ministry of Health and Family Welfare.

It is among the 18 digital clocks installed at various Population Research Centres nationwide by MoHFW.
It would update the figures of the state’s population for every 1.10 minute and the country’s population at every two seconds.
Objective: To create public awareness of population dynamics and aid research with precise data.
It can function independently and is equipped with a satellite connection for precise timekeeping.

{Prelims – In News} Janjatiya Gaurav Divas

Context (PIB): Bhagwan Birsa Munda ‘Maati Ke Veer’ Padayatra (foot march) will be celebrated as part of Janjatiya Gaurav Divas.

About Janjaitya Gaurav Diwas

The day is celebrated every year on Birsa Munda’s birth anniversary (15th November) to recognise tribal efforts to preserve cultural heritage and promote Indian values.
They held several tribal movements across different regions of India against British colonial rule. These tribal communities include Tamars, Santhals, Khasis, Bhils, Mizos, and Kols.

The PM inaugurated a tribal freedom fighter museum in 2021 at Ranchi.

Mera Yuva Bharat (MY Bharat) Platform

Launched by: Ministry of Youth Affairs and Sports
It is a ‘Phygital Platform’ (physical + digital) comprising physical activity and an opportunity to connect digitally.
The platform provides equal access to opportunities for youth to achieve their dreams and contribute to building an Amrit Bharat by 2047 through experiential learning programs.
It allows young people to create profiles showcasing their skills and activities.

Initiatives Launched for Tribal Communities

Also, read Schemes for the betterment of Tribals.

{Prelims – S&T – Defence} ToxicPanda

Context (IE): Cybersecurity researchers discovered a new Android malware (ToxicPanda) that aims to steal money from bank accounts. It targeted users in Southeast Asia.

It is a financial-focused trojan derived from an earlier malware family known as TgToxic.
It bypasses the bank’s security measures by enforcing “identity verification and authentication, combined with behavioural detection techniques applied by banks to identify suspicious money transfers.”

{Prelims – Sci – Bio – Diseases} Equine Piroplasmosis

Context (PIB): The Indian Council of Agricultural Research – National Research Centre on Equines (ICAR-NRC Equine) in Haryana has achieved the status of a World Organisation for Animal Health (WOAH) Reference Laboratory for Equine Piroplasmosis.

The Department of Animal Husbandry and Dairying (DAHD), which is part of the Ministry of Fisheries, Animal Husbandry, and Dairying, has facilitated this designation.

What are Equine Animals?

“Equine” refers to animals in the horse family, scientifically known as Equidae. This group includes Horses, Donkeys, Mules (hybrids of horses and donkeys), and Zebras.
In India, Uttar Pradesh, Rajasthan, Gujarat, and Haryana have the highest equine populations.

About Equine Piroplasmosis Disease

It is a tick-borne disease caused by protozoan parasites Babesia caballi and Theileria equi.
Transmission and Spread: The disease is spread by bites of infected ticks, which become infected when they ingest blood from an infected animal. It can also be spread through contaminated blood.

Indian Council for Agricultural Research

It is an autonomous organisation established in 1929 under the Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare.
Headquarter: New Delhi
It is an apex body for coordinating, guiding and managing research and education in agriculture including horticulture, fisheries and animal sciences in the entire country.
Union Minister of Agriculture is the ex-officio President of the ICAR Society.