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DAILY CURRENT AFFAIRS, 30 OCTOBER 2023

PREVENTIVE DETENTION

 
 
1. Context
As Telangana gears up for Assembly polls next month, its stringent preventive detention law is under the spotlight. In at least three separate instances, the Supreme Court has red-flagged the Telangana government’s use of the law
 
2. What is Prevention detention?
  • Preventive detention means detention of a person by the state without trial and conviction by court, but merely on suspicion. The detention could be up to a year unless extended
  • A pre-trial detention is not the same as preventive detention. While the former is an undertrial accused of a crime, a detainee can be taken into custody just as a preventive measure even if he has not committed a crime
  • In countries such as Britain, United States and Canada, preventive detention is a wartime measure. In India, the Constitution itself makes space for preventive detention.
  • Part III of the Constitution, which deals with fundamental rights, also gives the state the power to suspend these rights for preventive detention
  • Despite its emphasis on individual liberty, Part III, which forms the basic structure of the Constitution that cannot be amended, also contains provisions for preventive detention under Article 22
3. State's Order of Preventive Detention
  • Among central legislations, the National Security Act, the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) are examples of laws under which preventive detention can be ordered
  • As many as 25 states also have preventive detention legislations, like the Telangana law, which is called The Telangana Prevention of Dangerous Activities of BootLeggers, Dacoits, Drug-Offenders, Goondas, Immoral Traffic Offenders, Land-Grabbers, Spurious Seed Offenders, Insecticide Offenders, Fertiliser Offenders, Food Adulteration Offenders, Fake Document Offenders, Scheduled Commodities Offenders, Forest Offenders, Gaming Offenders, Sexual Offenders, Explosive Substances Offenders, Arms Offenders, Cyber Crime Offenders and White Collar or Financial Offenders Act, (PD Act), 1986.
  • These are expansive laws specifically addressed to local law and order issues. Other examples are the Tamil Nadu Prevention of Dangerous Activities of Bootleggers, Drug Offenders, Forest Offenders, Goondas, Immoral Trafficking Offenders and Slum Grabbers Act, 1982; the Gujarat Prevention of Antisocial Activities Act, 1985; the Bihar Control of Crimes Act, 1981, etc
4. Powers of the State
  • Article 22 prescribes protection against arrest and detention but has a major exception. It says in Article 22 (3) (b) that none of those safeguards apply “to any person who is arrested or detained under any law providing for preventive detention.”
  • The remaining clauses Article 22(4)-(7) deal with how preventive detention operationalises
  • First, the state, which would be the district magistrate, would issue an order to detain a person when it is necessary to maintain “public order.” The state can delegate this power to the police as well.
  • If the detention ordered is for more than three months, under Article 22(4), such Article 22(5) of the Constitution mandates that the state is required “as soon as maybe,” to communicate to the detainee the grounds of detention and “shall afford him the earliest opportunity of making a representation against the order.”detention requires the approval of an Advisory Board
  • These Boards are set up by states and normally consist of retired judges and bureaucrats. A detainee is generally not allowed legal representation before the Board.
  • If the Board confirms the detention, the detainee can move to Court challenging the detention order
  • A basic set of facts that are the grounds for detention are required to be communicated in one instalment, and the state cannot then add fresh, new or additional grounds to strengthen its original detention order. The grounds have to be read in a language that the detainee understands.
  • However, even this safeguard is diluted to a certain extent by Article 22(6), which says that nothing in clause 5 shall require the state to “disclose facts that the state considers to be “ against the public interest to disclose.”
5. Judicial review on Preventive detention
  • For preventive detention, there are very narrow grounds of judicial review because the Constitution emphasises the state’s “subjective satisfaction” when ordering a detention.
  • The touchstone on which the order is examined is this subjective opinion of the state rather than the fundamental rights enshrined in the Constitution.
  • When the Court cannot substitute the subjective satisfaction of the state with its own satisfaction, it essentially means that it cannot check the veracity of the facts mentioned in the grounds of detention.
  • A judicial review is limited to whether the Advisory Board applied its mind, considered all material facts and whether the state showed obvious malafide in ordering detention.
  • Because judicial review is limited, courts often strike down detention orders on technical grounds, such as delay in the decision of the advisory board, communication of grounds in a timely fashion and in a language that the detainee understands, etc
6. Way forward
Preventive detention s it involves balancing the need to protect society and the legal process with the rights and freedoms of individuals. The use and regulation of preventive detention can vary widely from one jurisdiction to another, and it is a subject of ongoing debate and legal reform in many places
 
Source: indianexpress

LIQUIFIED NATURAL GAS (LNG)

 
 
1. Context
The death sentence given to eight former personnel of the Indian Navy by a court in Qatar presents the biggest challenge yet to New Delhi’s historically friendly ties with Doha. In the relationship between nations, trade relations play a significant role. In the case of India and Qatar, the balance of trade is tilted heavily in the latter’s favour — which means imports from Qatar far outweigh India’s exports.
It is India’s largest source of liquefied natural gas (LNG) — gas that has been supercooled to liquid form so that it can be transported by sea
 
2. What is liquid natural gas (LNG)?
Liquefied Natural Gas (LNG) is a natural gas that has been cooled to extremely low temperatures to convert it from a gaseous state into a liquid state. This process makes natural gas more compact and transportable, facilitating its storage and transportation over long distances
2.1. Key Aspects of LNG

Natural Gas Composition: Natural gas is primarily composed of methane, but it can also contain small amounts of other hydrocarbons like ethane, propane, and butane, as well as impurities like sulfur compounds.

Liquefaction Process: LNG is created through a process known as liquefaction. In this process, natural gas is cooled to temperatures around -162 degrees Celsius (-260 degrees Fahrenheit). This extreme cooling causes the gas to change from a gaseous form into a dense, stable liquid.

Reduced Volume: The liquefaction process reduces the volume of natural gas to approximately 1/600th of its volume in its gaseous state. This reduction in volume makes it more practical and cost-effective to store and transport natural gas over long distances, whether by ship, truck, or pipeline.

Storage and Transportation: LNG is stored and transported in specially designed cryogenic tanks and ships. These tanks and ships are insulated to maintain the extremely low temperatures required to keep LNG in its liquid state. LNG carriers are designed to handle the safe transport of LNG from production facilities to import terminals around the world.

Liquefied Natural Gas (LNG) Analysis | Applied Analytics

3. Uses of liquified natural gas (LNG)

  •  LNG can be used to generate electricity. It is often used in natural gas power plants to produce electricity, especially in regions with limited access to other energy sources.
  •  LNG can be regasified and used for heating purposes in homes, businesses, and industrial facilities
  • LNG is used as a fuel source in various industrial and commercial applications, including in the manufacturing, chemical, and transportation sectors.
  • Some ships and vessels, especially in the maritime industry, use LNG as a cleaner and more environmentally friendly alternative to traditional marine fuels
  • LNG is considered a relatively cleaner fuel source compared to coal and oil because it produces fewer emissions of greenhouse gases, sulfur dioxide, and other pollutants when burned. This has made it a popular choice for reducing emissions in power generation and transportation
  •  LNG is traded globally, with significant producers including countries like Qatar, the United States, Australia, and Russia. It is transported across oceans to meet the energy needs of various regions and countries
4. India, Qatar, and LNG
  • India’s total imports from Qatar in FY2022-23 were valued at $16.81 billion, of which LNG imports alone were worth $8.32 billion, or 49.5%, an analysis of official trade data shows
  • India’s other major imports from Qatar are also fossil fuel-linked commodities and products, such as liquefied petroleum gas (LPG), plastics, and other petrochemicals.
  •  India’s exports to Qatar were valued at just $1.97 billion in FY2022-23. The major exports include cereals, copper articles, iron and steel articles, vegetables, fruits, spices, and processed food products
  • India imported a total 19.85 million tonnes of LNG in FY23, of which 10.74 million tonnes, or 54%, came from Qatar, the trade data show.
  • This means that apart from the 8.5 million tonnes of LNG that Qatar supplied as part of the Petronet LNG term contract, nearly 2.25 million tonnes of additional gas was purchased from Qatar on spot basis last year.
  • While Indian LNG importers — predominantly the public sector oil and gas companies — continue to make efforts to diversify sourcing, it could be years before the high reliance on Qatar can be reduced to a meaningful extent
5. Global LNG Market
  • The global LNG market is a seller’s market after Russia’s invasion of Ukraine and the sanctions that have disrupted Russian natural gas supplies to Europe. After the war broke out, prices, particularly of LNG spot cargoes, surged globally
  • Compared with term contracts (such as the one Petronet has with Qatar), the spot LNG market is prone to higher price volatility.
  • In a supply glut, spot prices tend to fall more steeply than term contracts, as pricing in the latter is based on an agreed formula between the buyer and the seller. And when supplies are tight, spot prices tend to rise much more than term contract rates
  • The war has put Qatar, the world’s largest exporter of LNG, in a unique position of strength. According to industry experts, the extreme price volatility of the past couple of years in global LNG markets has established that term contracts, and not spot purchases, are the more viable option to secure supplies at a reasonable and stable price
  • This has pushed LNG importers all over the world, including India, to scout for long-term contracts with major suppliers, of whom Qatar is the foremost. Over the past few weeks, Doha has announced 27-year LNG supply deals with French, Dutch, and Italian energy majors. In the preceding months, it had signed long-term contracts to supply LNG to China and Germany
6. Way forward
Analysts and industry experts predict that the global LNG market is likely to turn into a buyer’s market over the next few years due to a surge in new LNG export projects coming onstream. This scenario, however, is still a few years away. And even then, a large chunk of this new LNG export capacity is expected to come on stream in Qatar itself.
 
Source: indianexpress

JEHOVAH'S WITNESSES

 
 
1. Context

Two people were killed and scores injured after a series of blasts at a Sunday prayer convention of the Jehovah’s Witnesses sect near Kochi.

The incident took place at the Zamra International Convention and Exhibition Centre at Kalamassery, where around 2,500 faithful from across the state had gathered for a prayer session

2. Who are Jehovah's Witnesses?

  • Jehovah’s Witnesses are a Christian sect, but do not believe in the Holy Trinity (the doctrine that God exists in three equal persons of the Father, the Son (Jesus Christ) and the Holy Spirit)
  • They worship Jehovah as “the one true and Almighty God, the Creator”, who is “the God of Abraham, Moses, and Jesus”. They believe Jesus Christ to be the “King of God’s Kingdom in heaven”, but not as the Almighty God
  • They base their beliefs only on the text of the Bible, which they see as the word of God. They don’t celebrate Christmas or Easter, because they believe such festivals to be inspired by Pagan traditions
  • Jehovah’s Witnesses are known for their evangelical work, for which they go door to door, to spread “The Truth”
  • They believe the end of the world is near, and the “Kingdom of God” will “replace human governments and accomplish God’s purpose for the earth.” The denomination has millions of followers worldwide
  • The origins of the sect lie in a Bible Student movement started in the 1870s by American pastor Charles Taze Russell
  •  The Governing Body of Jehovah’s Witnesses is located in Warwick, New York. The main body to disseminate the doctrines of the sect is called the Watch Tower Bible and Tract Society of Pennsylvania, also headquartered in Warwick
3. Jehovah’s Witnesses in India
  • India has about 56,747 Ministers who teach the Bible. “Jehovah’s Witnesses have been present in India since 1905
  •  They established an office in 1926 in Bombay and obtained legal registration in 1978. The Witnesses benefit from the guarantees of India’s constitution, which include the right to practice, profess, and propagate one’s faith
  • Jehovah's Witnesses are strict monotheists who believe in one God, whom they call "Jehovah." They reject the Christian doctrine of the Trinity, believing that God is a single divine being.
  • They consider the Bible to be the inspired word of God and the ultimate authority in matters of faith and doctrine. They primarily use their own translation of the Bible, known as the New World Translation of the Holy Scriptures
  •  Jehovah's Witnesses believe in the imminent arrival of God's Kingdom on Earth. They emphasize the need to prepare for the end times and actively engage in evangelism and preaching to share their beliefs
4. Issues and News regarding Jehovah's
  • The Supreme Court, in its 1986 verdict, granted protection to three children belonging to the sect, who did not join in the singing of the National Anthem at their school.
  • The court held that forcing them to sing the Anthem violated their fundamental right to religion under Article 25 of the Constitution
  • The Supreme Court then ruled that “Article 25 (“Freedom of conscience and free profession, practice and propagation of religion”)…[was] incorporated in recognition of the principle that the real test of a true democracy is the ability of even an insignificant minority to find its identity under the country’s Constitution.”
  •  Their members in India have at times been accused of trying to convert people due to their evangelical work
  • The court noted that according to the New Encyclopaedia Britannica’ (Macropaedia) Jehovah’s Witnesses believe that “the Watch Tower Bible and Tract Society, their legal agency and publishing arm, exemplifies the will of God and proclaims the truths of the Bible against the evil triumvirate of organised religion, the business world, and the state.”
  • The Supreme Court also cited a ruling of the Australian High Court in Adelaide Company of Jehovah’s Witnesses v The Commonwealth, which was a challenge against 1941 Australian law that booked the sect for subversive activities
5. Countries banned Jehovah's Witnesses

ehovah's Witnesses have faced bans or restrictions in several countries at various points in history due to objections from governments or religious authorities. It's important to note that these bans or restrictions can change over time, so the status of Jehovah's Witnesses in specific countries may have evolved since my knowledge cutoff date in January 2022. As of that time, some countries where Jehovah's Witnesses have faced significant restrictions or bans include:

  1. Russia: In 2017, the Russian government banned the activities of Jehovah's Witnesses, declaring their organization an extremist group. This led to the closure of their administrative center and local congregations, as well as the arrest and imprisonment of some members.

  2. China: Jehovah's Witnesses have faced government restrictions in China, with reports of arrests, detentions, and harassment of members. The Chinese government views their activities as illegal and considers them a banned religious organization.

  3. Singapore: The Singaporean government has banned the Jehovah's Witnesses since 1972, and their activities are considered illegal. This is primarily due to their refusal to salute the flag, which is a requirement in Singapore.

  4. Eritrea: In Eritrea, the government has banned all religious groups that are not officially recognized, including Jehovah's Witnesses. Members have faced persecution and imprisonment for their religious activities.

  5. Tajikistan: The government of Tajikistan has banned Jehovah's Witnesses, and their activities are considered illegal. Members have faced harassment and detention.

  6. Turkmenistan: Jehovah's Witnesses have been banned in Turkmenistan since 1997, and their activities are prohibited. Members have faced persecution, including imprisonment.

  7. Saudi Arabia: In Saudi Arabia, the government strictly enforces Islamic law and does not allow the practice of religions other than Islam. As a result, Jehovah's Witnesses, along with other religious groups, are effectively banned, and their activities are not tolerated.

Countries Where Jehovah's Witnesses' Activities Are Banned
6. Way forward

Jehovah's Witnesses have faced criticism and controversy over the years, particularly regarding their strict disciplinary practices, including shunning, as well as their stance on medical treatments like blood transfusions. They have also been involved in legal battles to protect their religious freedoms and practices

 

Source: Indianexpress

DNA SYSTEMS IN CRIMINAL PROCEDURE (IDENTIFICATION) ACT

1. Context

In April 2022, the Indian Parliament passed the Criminal Procedure (Identification) Act (CrPI), which empowers law enforcement agencies to collect and analyze physical and biological samples, including retina and iris scans of arrested individuals. However, the full implementation of the Act has been delayed, as the National Crime Records Bureau (NCRB), the nodal agency responsible for its execution, is in the process of preparing guidelines and Standard Operating Procedures (SOP). 

2. DNA Systems

  • DNA, or deoxyribonucleic acid, serves as the fundamental genetic material present in the cells of all individuals.
  • It uniquely determines human behaviour and physical characteristics, making each person's DNA distinct except for identical twins.
  • In the realm of forensic science, the utilization of DNA evidence has brought about a transformative impact on criminal investigations.
  • DNA profiling has proven to be a highly reliable and precise source of evidence, revolutionizing investigative processes worldwide since the 1980s.
  • Various countries have progressively incorporated DNA profiling into their investigation systems.
  • Many have enacted robust legislation to regulate its use, considering both its positive and negative aspects.

3. DNA evidence in the Criminal Procedure Code

  • India, too, has witnessed the increasing utilization of DNA evidence in criminal investigations over the past decade.
  • While its primary application has been in cases related to paternity, it is now also more prevalent in instances of rape and murder, with notable cases like the Nirbhaya gang rape and the Arushi Talwar murder trial highlighting its significance.
  • DNA technology plays a pivotal role in identifying the origins of biological samples, such as blood, saliva, semen, and skin cells, recovered from crime scenes.
  • Nevertheless, India has yet to fully harness the potential of DNA evidence, primarily due to the absence of dedicated legislation.
  • Currently, Indian courts allow the collection and utilization of DNA evidence by interpreting various legal provisions.
  • For instance, an extended interpretation of Sections 53 and 54 of the Criminal Procedure Code (CrPC) enables DNA tests.
  • Section 53 pertains to the examination of the accused by a medical professional, while Section 54 allows for medical examinations upon the request of the arrested person.
  • In 2005, an amendment introduced Section 53-A to the CrPC, mandating the examination of individuals accused of rape by a medical practitioner.
  • This examination encompasses the analysis of blood, bloodstains, semen, swabs, hair samples, and DNA profiling.
  • The court possesses the authority to direct law enforcement to collect blood samples and conduct DNA tests for further investigative purposes.
  • However, the absence of dedicated legislation remains a significant obstacle to realizing the full potential of DNA evidence in India.

4. The Need for Legislative Change

The CrPI Act replaced the outdated British-era Identification of Prisoners Act, 1920. The former law was limited in scope, primarily collecting finger and footprint impressions and photographs of convicted persons. In contrast, the new Act incorporates modern techniques to capture and record various body measurements.

5. The Role of the National Crime Records Bureau (NCRB)

  • The NCRB, operating under the Union Ministry of Home Affairs (MHA), plays a pivotal role in implementing the CrPI Act.
  • It is responsible for storing, processing, sharing, disseminating, and destroying records of measurements obtained.
  • Impressions collected at police stations will be stored in a centralized database maintained by the NCRB, accessible to authorized police and prison officials nationwide.
  • The NCRB also prescribes specifications for equipment, outlines methods for handling and storing measurements, and specifies information technology systems for data collection.
  • Notably, the Act extends the authority for taking measurements to registered medical practitioners and other skilled individuals, and the records are to be stored for 75 years.

6. Current Implementation Status

  • While law enforcement agencies have been trained to record finger impressions using the National Automated Fingerprint Identification System (NAFIS), the deployment of iris scanners and devices for DNA and facial recognition systems is pending.
  • NAFIS, a separate project under the NCRB, assigns unique ten-digit National Fingerprint Numbers (NFN) to arrested suspects, facilitating a countrywide search for matching fingerprints from crime scenes. NAFIS workstations are operational in several states.

7. Challenges and Concerns

  • The introduction of the CrPI Act has raised concerns about fundamental rights, particularly the right to privacy.
  • Questions have emerged regarding the protection and handling of DNA samples and facial recognition data.
  • Furthermore, there is a need for greater awareness among law enforcement officials about the specific cases where measurements should not be recorded, as stipulated in the rules.
  • The Act places the onus of data destruction and disposal on individuals, which could affect those who lack access to legal resources.
  • The type of DNA samples that law enforcement agencies can collect has not been clearly defined, and there is uncertainty regarding the scope of DNA sampling in various crimes.
  • The NCRB has cautioned against potential misuse of the database and emphasized the need for safeguards to restrict access to designated officials.
  • Connectivity issues have also been identified, particularly in smaller states, where securing Internet lease lines remains a challenge.

8. Conclusion

The implementation of the Criminal Procedure (Identification) Act in India faces significant challenges related to data privacy, the definition and scope of DNA sampling, and connectivity issues. While the Act aims to modernize the process of capturing and recording measurements, its effective execution requires careful consideration of these challenges and concerns to protect the rights and privacy of individuals.

 
For Prelims: Criminal Procedure (Identification) Act, DNA sampling, National Crime Records Bureau, Standard Operating Procedures, Nirbhaya gang rape, Right to privacy, National Automated Fingerprint Identification System, facial recognition data, Union Ministry of Home Affairs, Identification of Prisoners Act, 1920, Criminal Procedure Code
For Mains: 
1. Critically analyze the significance of DNA evidence in criminal investigations and the challenges in its implementation in India. (250 Words)
2. Examine the ethical and legal implications of using DNA evidence in criminal investigations, and discuss safeguards to protect the rights of individuals. (250 Words)
 
 
Previous Year Questions
 
Prelims
 
1. Which of the following characterizes International Criminal Court (ICC)? (UGC NET 2020)
(A) The Rome statute established ICC as a 'Court of last resort'
(B) ICC can exercise jurisdiction only when national courts are unwilling or unable to investigate or prosecute
(C) It can not prosecute acts of war crimes
(D) ICC is not located in the Hague
Choose the correct answer from the options given below: 
1. (A) and (B) only       2. (B) and (C) only      3. (C) and (D) only          4. (A) and (D) only
 
Answer: 1
 
2. Consider the following statements: DNA Barcoding can be a tool to: (UPSC CSE 2022)
1. assess the age of a plant or animal.
2. distinguish among species that look alike.
3. identify undesirable animal or plant materials in processed foods.
Which of the statements given above is/are correct?
A. 1 only          B. 3 only          C. 1 and 2          D.  2 and 3
 
Answer: D
 

3. Consider the following statements:  (UPSC CSE 2020)

1. Genetic changes can be introduced in the cells that produce eggs or sperms of a prospective parent.
2. A person’s genome can be edited before birth at the early embryonic stage.
3. Human-induced pluripotent stem cells can be injected into the embryo of a pig.

Which of the statements given above is/are correct?

(a) 1 only           (b) 2 and 3 only             (c) 2 only                 (d) 1, 2 and 3

Answer: D

4. Right to Privacy is protected as an intrinsic part of Right to Life and Personal Liberty. Which of the following in the Constitution of India correctly and appropriately imply the above statement? (UPSC CSE 2018)
A. Article 14 and the provisions under the 42nd Amendment to the Constitution
B. Article 17 and the Directive Principles of State Policy in Part IV
C. Article 21 and the freedoms guaranteed in Part III
D. Article 24 and the provisions under the 44th Amendment to the Constitution

Answer: C

5. ‘Right to Privacy’ is protected under which Article of the Constitution of India? (UPSC CSE 2021) 
A. Article 15         B. Article 19          C. Article 21              D. Article 29
 
Answer: C
 
6. The identity platform ‘Aadhaar’ provides open “Application Programming Interfaces (APIs)”. What does it imply? (UPSC CSE 2018)
1. It can be integrated into any electronic device.
2. Online authentication using iris is possible.

Which of the statements given above is/are correct?

(a) 1 only        (b) 2 only           (c) Both 1 and 2         (d) Neither 1 nor 2

Answer: C

7. In addition to fingerprint scanning, which of the following can be used in the biometric identification of a person? (UPSC CSE 2014)

1. Iris scanning
2. Retinal scanning
3. Voice recognition

Select the correct answer using the code given below:

(a) 1 only         (b) 2 and 3 only          (c) 1 and 3 only           (d) 1, 2 and 3

Answer: D

8. Consider the following statements: (UPSC CSE 2022)

1. The Constitution of India classifies the ministers into four ranks viz. Cabinet Minister, Minister of State with Independent Charge, Minister of State and Deputy Minister.
2. The total number of ministers in the Union Government, including the Prime Minister, shall not exceed 15 percent of the total number of members in the Lok Sabha.

Which of the statements given above is/are correct?

A. 1 only        B. 2 only             C. Both 1 and 2               D. Neither 1 nor 2

Answer: B

9. The Centre introduced a new bill called the Criminal Procedure (Identification) Bill 2022. This Bill will repeal the Identification of Prisoners Act which was established in _______. (SSC CGL 2022)

A. 1930        B. 1950            C. 1945             D. 1920

Answer: D

 

Mains

1. E-governance is not only about utilization of the power of new technology, but also much about critical importance of the ‘use value’ of information. Explain. (2018)

2. Two parallel run schemes of the Government, viz the Adhaar Card and NPR, one as voluntary and the other as compulsory, have led to debates at national levels and also litigations. On merits, discuss whether or not both schemes need run concurrently. Analyse the potential of the schemes to achieve developmental benefits and equitable growth. (2014)

 
Source: The Hindu

PASSIVE FUNDS AND ACTIVE FUNDS

 
 
1. Context:
For quite some time, there is a debate going on between active mutual fund schemes and passive ones. There is a shift happening in favour of passive funds. The argument is that actively managed funds charge a relatively higher expense ratio to the fund
 
2. What are Passive Funds?
Passive funds, also known as index funds or passive investments, are a type of investment fund that aims to replicate the performance of a specific market index, such as the S&P 500, rather than actively selecting and managing individual assets within the fund
If a fund is not performing better than the benchmark index, then the management cost is not justified. The investor would rather buy the reference index  not literally, but through a passive fund
2.1. Significance of Passive funds
  • Passive funds typically have lower management fees compared to actively managed funds. This is because they don't require a team of investment professionals to actively research and select investments. Instead, they aim to replicate the performance of an existing index, which reduces the need for extensive research and trading
  • Passive funds often provide broad exposure to a market or a specific segment of the market. For example, an S&P 500 index fund invests in all 500 stocks included in the S&P 500 index, offering diversification across multiple sectors and industries
  • The holdings of passive funds are generally transparent and can be easily tracked, as they aim to replicate a known index. This transparency allows investors to know exactly what they are investing in
  • Passive funds follow a predetermined investment strategy, and they do not engage in active trading or frequent buying and selling of assets. This can lead to a more stable and consistent investment approach.
2.2.. Types of Passive funds
Passive funds are often contrasted with actively managed funds, where portfolio managers make investment decisions based on their research and analysis

Common types of passive funds include:

  • Index Funds: These funds aim to replicate the performance of a specific market index, such as the S&P 500 or the Nasdaq.

  • Exchange-Traded Funds (ETFs): ETFs are a type of passive fund that can be traded on stock exchanges, providing investors with liquidity and flexibility. They often track various indices and asset classes.

  • Passive Bond Funds: Similar to equity index funds, these funds track fixed-income indices, providing exposure to a diversified portfolio of bonds

3. What are Active Funds?
Active funds, also known as actively managed funds, are a type of investment fund in which professional portfolio managers or fund managers actively make investment decisions with the goal of outperforming a benchmark index or achieving specific investment objectives. Unlike passive funds, which seek to replicate the performance of a designated market index
3.1.Significance of Active Funds
  • Active funds are managed by investment professionals who research, analyze, and select individual securities, such as stocks, bonds, or other assets, with the aim of achieving superior returns.
  • These managers use their expertise to make buy and sell decisions based on their assessment of market conditions and investment opportunities.
  • Fund managers conduct in-depth research and analysis to identify potential investments that they believe will perform well.
  • This research may involve financial statements, company performance data, economic indicators, and various other factors.
3.2. Types of Active Funds
Investors choose active funds when they believe that the expertise of professional fund managers can deliver superior returns or when they have specific investment objectives that are not easily achieved with passive index-based investments

Common types of active funds include:

  • Equity Funds: These funds invest primarily in stocks, with the goal of achieving capital appreciation.

  • Fixed-Income Funds: These funds invest in bonds and other fixed-income securities, with an emphasis on generating income.

  • Multi-Asset Funds: These funds invest in a combination of asset classes, such as stocks, bonds, and cash, to achieve diversification and risk management.

  • Alternative Funds: These funds employ non-traditional strategies, such as long-short equity, market-neutral, or hedge fund-like approaches

4. Way forward
Investors choose between passive and active funds based on their investment goals, risk tolerance, and beliefs about the effectiveness of active management in achieving better returns
All actively managed funds consistently outperform their benchmarks, and they often come with higher fees and the risk of underperformance.
 
Source: The Hindu

QR CODE 

1. Context

The Food Safety and Standards Authority of India (FSSAI) has proposed the implementation of QR codes on food products to enhance accessibility for visually impaired individuals. This initiative aims to ensure access to safe food and empower consumers with comprehensive product information.

2. About QR Codes

  • QR codes (Quick Response codes) are a type of two-dimensional barcode that can be read by smartphones and other devices with a camera.
  • QR codes, invented in 1994, were initially designed for labelling automobile parts.
  • They are used to store information such as website URLs, contact information, and product details.
  • QR codes are becoming increasingly popular in a variety of industries, including food and beverage, retail, and manufacturing.
  • Their integration into food products serves to enhance brand image, customer loyalty, and operational efficiency for manufacturers.

3. Importance of the Initiative

  • The Indian market for packaged foods is one of the largest globally, but it also witnessed a surge in non-communicable diseases (NCDs).
  • The rise of NCDs is attributed, in part, to the increased consumption of aggressively marketed, easily accessible pre-packaged foods.
  • Ashim Sanyal, CEO of Consumer VOICE, highlights the importance of informed consumer choices and the need for accurate product information.
  • The FSSAI directive outlines that QR codes must contain detailed product information such as ingredients, nutritional facts, allergens, manufacturing and expiry dates, and contact details for customer inquiries.
  • It's emphasized that the QR code isn't a replacement for mandatory product label information but an additional accessibility feature for the visually impaired.
  • The recommendation aligns with FSSAI’s Food Safety and Standards (Labelling and Display) Regulations, 2020, and the Rights of Persons with Disabilities Act, 2016.

4. Role in Food Literacy and Consumer Behavior

  • Researchers emphasize the importance of accurate food labels, particularly with the rising preference for high-fat, high-salt, and high-sugar pre-packaged foods.
  • FSSAI's front-of-pack labelling (FOPL) strategy and the use of QR codes are recognized as pivotal tools to educate and alert consumers, helping them make informed choices.

5. Global Trends in QR Code Usage

  • The U.S., India, France, and the U.K. stand as leading users of QR codes.
  • Reports and surveys highlight that consumers are increasingly scanning QR codes for food-related information.
  • The global packaged food market has seen substantial growth, with QR codes being favoured for their ability to provide easy access to product information.

6. Conclusion

The inclusion of QR codes on food products is a significant step towards empowering consumers with vital product information, aligning with global trends in technology and consumer preferences. This initiative not only aids the visually impaired but also enhances consumer awareness and choice in a rapidly evolving food market.

For Prelims: QR codes, Rights of Persons with Disabilities Act, 2016, Food Safety and Standards (Labelling and Display) Regulations, 2020, Food Safety and Standards Authority of India, non-communicable diseases, 
For Mains: 
1. Suggest ways to leverage QR codes on food products to promote sustainable consumption and production patterns in India. (250 Words)
 
 
 
Previous Year Questions
 
1. Consider the following statement: (UPSC  2018)
1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
2. The Food Safety and Standards Authority of India (FSSAI) is under the charge of Director General of Health Services in the Union Ministry of Health and Family Welfare.
Which of the statements given above is/are correct?
A. 1 only      B. 2 only      C. Both 1 and 2       D. Neither 1 nor 2
 
Answer: A
 
2. Read the following passage and answer the question that follows.
Your answers to these items should be based on the passage only.
 
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
 
With reference to the above passage, the following assumptions have been made: (UPSC  2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid? 
A. 1 only     B. 2 only      C. Both 1 and 2      D. Neither 1 nor 2
 
Answer: D
 
3. With reference to consumer's rights/privileges under the provisions of the law in India, which of the following statements is/are correct? (UPSC 2012)
1. Consumers are empowered to take samples for food testing.
2. When a consumer files a complaint in any consumer forum, no fee is required to be paid.
3. In case of the death of a consumer, his/her legal heir can file a complaint in the consumer forum on his/her behalf.
Select the correct answer using the codes given below:
A. 1 only              B. 2 and 3 only            C. 1 and 3 only           D.  1, 2 and 3
 
Answer: C
 
4. Which of the following are correct about QR code? (Telangana SET 2018)
i) It is a two-dimensional (matrix) machine-readable bar code made up of black and white squares.
ii) It is used for storing URLs or other information that link directly to text, emails, websites, phone numbers.
iii) It can store up to 7089 digits.
A. i, ii only          B. ii, iii only          C.  i, ii, iii              D.  i,iii only 
 
Answer: C
 
5. The Rights of Persons with Disabilities Act has been enacted in the year ___  (CTET 2018)
A. 1995     B. 1999         C.  2016          D.  1992
 
Answer: C
 
6. With reference to pre-packaged items in India, it is mandatory to the manufacturer to put which of the following information on the main label, as per the Food Safety and Standards (Packaging and Labelling) Regulations, 2011? (UPSC 2016)
1. List of ingredients including additives
2. Nutrition information
3. Recommendations, if any, made by the medical profession about the possibility of any allergic reaction
4. Vegetarian/ non-vegetarian
Select the correct answer using the code given below.
A. 1, 2 and 3          B.  2, 3 and 4              C. 1, 2 and 4            D. 1 and 4 only
 
Answer: C
 

7. Brominated flame retardants are used in many household products like mattresses and upholstery. Why is there some concern about their use? (2014)

1. They are highly resistant to degradation in the environment.
2. They are able to accumulate in humans and animals.

Select the correct answer using the code given below:

(a) 1 only             (b) 2 only                     (c) Both 1 and 2              (d) Neither 1 nor 2

Answer: C

 Source: The Hindu

 

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