INDIA-UAE

1. Context 

2. Key points

• India, the world's second-largest food producer, is an essential partner in the UAE's ambition to strengthen food security.
• The India-UAE food security partnership stands to benefit from multiple points of convergence.

3. India's Role in Global food security

• India has built its status as a global agri-export powerhouse using its vast tracts of arable land, a highly favourable climate and a large and growing food production and processing sector.
• Along with serving global markets with its diversified agri-produce, India has, in recent years, acted as a humanitarian provider of food to developing countries, demonstrating awareness of its evolving role in advancing regional and global food security.
• India has also made major budgetary outlays towards setting up massive food parks, with due emphasis on modern supply chain management spanning farm gates to retail outlets.
• These investments, complemented by how India has placed its food sector to benefit from bilateral trade agreements, reflect the country's strong and sustained intent to make the most of its agri-capabilities in the global food marketplace.
• In parallel, India runs the Public Distribution System, the world's largest food subsidy programme, providing nearly 800 million citizens with subsidised grains and reassuring its people of daily, affordable meals.
• Equally laudable is India's Prime Minister's Overarching Scheme for Holistic Nutrition (POSHAN) Abhiyaan', the world's largest nutrition programme for children and women.
• As part of its G-20 presidency, India is promoting the consumption and farming of millets nutritious, drought-resistant, sustainable, crops that demonstrate the resilience focus that India offers to the global food security dialogue.
• In the realm of food security, India's G-20 presidency seeks to address the three Cs, of "Covid, Conflict and Climate", issues pernicious to food security in India and across the globe.

4. Strengthening the India-UAE food security partnership

• Seen together, India brings to the table an incredible wealth of food sector experience and the ability to operationalise the world's largest food supply chains' formidable capabilities that are strengthening the India-UAE food security partnership in a variety of ways.
• During the I2U2 (India, Israel, the United Arab Emirates and the United States) summit in July last year, the UAE committed $2 billion in investment towards constructing food parks in India (in Madhya Pradesh and Gujarat), while the signing of a food security corridor on the Comprehensive Economic Partnership Agreement (CEPA)'s sidelines (with logistics partner DP World) has taken forward India's envisioned presence on the global food value chain, beyond the UAE.
• The corridor could potentially commence a route for foods made and processed in India, beginning their outbound journey on the Indian coast of the Arabian Sea, passing through the UAE and towards major international markets.
• With its ability to establish high volume trade of foods, the corridor stands to emerge as a world-class template of successful agri-trade for India, while also unlocking greater productivity, efficiency and growth for its millions of workers and employees.
• For the UAE, the benefits go beyond maintaining and diversifying its food reserves and trade linkages could enable the Emirates to leverage its strategically placed location between Asia and Europe to serve as India's food export gateway to West Asia and the African region and further beyond.
• Given the food corridor's incredible commercial potential, several UAE-based companies have expressed interest in constructing a supporting logistics and infrastructure pipeline to accelerate trade and reinforce the food corridor.
• The Dubai Multi Commodities Centre, the UAE's largest free trade zone, launched Agriota an agri-trading and commodity platform to link Indian farmers to food companies in the UAE.
• Agriota allows millions of Indian farmers to directly reach out to the entirety of the UAE's food ecosystem (processing companies, traders, wholesalers) and stock their products in Emirati stores.
• Alongside this initiative, a consortium of UAE-based entities is investing up to $7 billion in mega food parks, contract farming and sourcing agro-commodities in India.
• The initiative will include mega food parks, logistics and warehouse hubs and fruits and vegetable hubs.

5. The benefits 

• There is much that India stands to gain from the UAE's private sector projects spanning its agricultural and food processing sector.
• Those projects will generate lakhs of non-fram agri-jobs while enabling farmers to discover better prices for their products.
• Bolstered by the UAE's infrastructural capabilities, India's agricultural products will have more resilient and diversified pathways to the global marketplace.
• India's G-20 presidency offers an opportune moment for both India and the UAE to showcase viable strategies and frameworks that can forge the basis of food security in the Global South.
• As it sets the global developmental agenda, India can take to leverage and strengthen trade pathways with the UAE to forge a sustainable, inclusive, efficient and resilient future of food.

Source: The Hindu

YZ CETI B

1. Context

An alien world called YZ Ceti b has suddenly become the cynosure of astronomers. YZ Ceti b is a rocky, earth­sized exoplanet rotating around a small red dwarf star, YZ Ceti, barely 12 light­years from Earth. Astronomers have detected a repeating radio signal from this exoplanet, suggesting the presence of a magnetic field one of the prerequisites for a habitable planet around it.

2. How was the Discovery Made?

• The discovery was made by Jackie Villadsen from Bucknell University, Pennsylvania, and Sebastian Pineda from the University of Colorado, Boulder, using the Karl G. Jansky Very Large Array radio telescope in New Mexico.
• They had to make multiple observations before they could detect the radio signals from the star YZ Ceti, which seemed to match the orbital period of the planet YZ Ceti b.
• From this, they deduced that the signals were a result of the interaction between the planet's magnetic field and the star.

Image source: NASA

3. Why magnetic field is important?

• Just as energy surges from the sun sometimes disrupt telecommunications on Earth and damage orbiting satellites, intense bursts of energy from the YZ Ceti star exoplanet exchange produce spectacular auroral lights.
• These radio waves, strong enough to be picked up on Earth, confirmed the existence of an exoplanetary magnetic field.
• Such signals can only be produced if the exoplanet orbits very close to its parent star and has its magnetic field to influence the stellar wind and generate the signals.

4. What does this mean for YZ Ceti b?

• YZ Ceti b has a small orbit astronomers determined that the planet takes just a couple of Earth days to circle its star.
• Since the mid-1990s, astronomers have found hundreds of planets orbiting stars similar to the sun.
• To have an atmosphere and sustain water, a planet has to be at a certain distance from its star (in orbits said to be in the star's "Goldilocks Zone") or it will get burnt.
• Earth, for example, would have been a lot more like Venus if it had been just a little closer to the sun or cold like Mars if it had been any farther.
• Astronomers believe nearly 30% of all star systems discovered could potentially have "Goldilocks zones".

5. What are Exoplanets?

• Exoplanets are planets that orbit other stars and are beyond our solar system. The first confirmation of the detection of exoplanets occurred in 1992.
• According to NASA, more than 5,000 exoplanets have been discovered.
• Scientists believe there are more planets than stars as each star has at least one planet orbiting it.
• Exoplanets come in a host of different sizes. They can be gas giants bigger than Jupiter or as small and rocky as Earth. They are also known to have different temperatures, from boiling hot to freezing cold.

Image Source: NASA

6. Discovery of Exoplanets

• Exoplanets are very hard to see directly with telescopes. They are hidden by the bright glare of the stars they orbit.
• So, astronomers use other ways to detect and study exoplanets such as looking at the effects these planets have on the stars they orbit.
• Scientists rely on indirect methods, such as the transit method, which is measuring the dimming of a star that happens to have a planet pass in front of it.
• Other detection methods include gravitational microlensing. Light from a distant star is bent and focused by gravity as a planet passes between the Star and Earth. The same method could hypothetically use our sun to see exoplanets.

For Prelims: YZ Ceti b, Light year, Auroral lights, Earth's magnetic field, Goldilocks Zone, NASA, and Exoplanets.

 

Source: The Hindu

TARIFFS

 

 

1. Context

 

India is expected to appeal a recent ruling by a panel of the World Trade Organization (WTO) on its imposition of tariffs on mobile phones and electronic components in a bid to ensure that the ruling does not impact the country’s domestic manufacturing goals, especially in a sector which has seen capacity building

In 2019, the EU challenged the import duty of 7.5 percent – later increased to 15 percent – levied by India in 2017 on a wide range of IT products, such as mobile phones and components, as well as integrated circuits, to curb imports and step up domestic production

2. What is a Tariff?

• Most countries are limited by their natural resources and ability to produce certain goods and services.
• They trade with other countries to get what their population needs and demands. However, trade isn't always conducted in an amenable manner between trading partners.
• Policies, geopolitics, competition, and many other factors can make trading partners unhappy. One of the ways governments deal with trading partners they disagree with is through tariffs.
• A tariff is a tax imposed by one country on the goods and services imported from another country to influence it, raise revenues, or protect competitive advantages.

3. Key Take Aways

• Governments impose tariffs to raise revenue, protect domestic industries, or exert political leverage over another country.
• Tariffs often result in unwanted side effects, such as higher consumer prices.
• Tariffs have a long and contentious history, and the debate over whether they represent good or bad policy still rages.

4. History of Tariffs

4.1 Pre Modern Europe

• In pre-modern Europe, a nation's wealth was believed to consist of fixed, tangible assets,  such as gold, silver, land, and other physical resources.
• Trade was seen as a Zero-sum game that resulted in either a clear net loss or a clear net gain of wealth.
• If a country imported more than it exported, a resource, mainly gold, would flow abroad, thereby draining its wealth. Cross-border trade was viewed with suspicion, and countries preferred to acquire colonies with which they could establish exclusive trading relationships rather than trading with each other.
• This system, known as mercantilism, relied heavily on tariffs and even outright bans on trade. The colonizing country, which saw itself as competing with other colonizers, would import raw materials from its colonies, which were generally barred from selling their raw materials elsewhere.
• The colonizing country would convert the materials into manufactured wares, which it would sell back to the colonies. High tariffs and other barriers were implemented to ensure that colonies only purchased manufactured goods from their home countries. 

4.2 Late 19th and early 20th Centuries

• Relatively free trade enjoyed a heyday in the late 19th and early 20th centuries when the idea took hold that international commerce had made large-scale wars between nations so expensive and counterproductive that they were obsolete.
• World War I proved that idea wrong, and nationalist approaches to trade, including high tariffs, dominated until the end of World War II.
• From that point on, free trade enjoyed a 50-year resurgence, culminating in the creation in 1995 of the World Trade Organisation  (WTO), which acts as an international forum for settling disputes and laying down ground rules.
• Free trade agreements, such as the North American Free Trade Agreement (NAFTA) now known as the United States-Mexico-Canada Agreement (USMCA) and the European Union (EU), also proliferated.

4.3 In the 21st Century

• Skepticism of this model sometimes labeled neoliberalism by critics who tie it to 19th-century liberal arguments in favor of free trade grew, however, and Britain in 2016 voted to leave the European Union.
• That same year Donald Trump won the U.S. presidential election on a platform that included a call for tariffs on Chinese and Mexican imports, which he implemented when he took office.
• Critics of tariff-free multilateral trade deals, who come from both ends of the political spectrum, argue that they erode national sovereignty and encourage a race to the bottom regarding wages, worker protections, and product quality and standards.
• Meanwhile, the defenders of such deals counter that tariffs lead to trade wars, hurt consumers, and hamper innovation.

5. Understanding Tariffs

• Tariffs are used to restrict imports. Simply put, they increase the price of goods and services purchased from another country, making them less attractive to domestic consumers.
• A key point to understand is that a tariff affects the exporting country because consumers in the country that imposed the tariff might shy away from imports due to the price increase. However, if the consumer still chooses the imported product, then the tariff has essentially raised the cost to the consumer in another country.

There are two types of tariffs:

• A specific tariff is levied as a fixed fee based on the type of item, such as a $500 tariff on a car.
• An ad-valorem tariff is levied based on the item's value, such as 5% of an import's value.

6. Why Government Imposes Tariffs?

Governments may impose tariffs for several reasons

6.1 Raise Revenues

Tariffs can be used to raise revenues for governments. This kind of tariff is called a revenue tariff and is not designed to restrict imports. For instance, in 2018 and 2019, President Donald Trump and his administration imposed tariffs on many items to rebalance the trade deficit. In the fiscal year 2019, customs duties received were $18 billion. In FY 2020, duties received were $21 billion.

6.2 Protect Domestic Industries

Governments can use tariffs to benefit particular industries, often doing so to protect companies and jobs. For example, in May 2022, President Joe Biden proposed a 25% ad valorem tariff on steel articles from all countries except Canada, Mexico, and the United Kingdom (the U.K. has a quota of an aggregate of 500,000 metric tons it can trade with the U.S.). This proclamation reopens the trade of specific items with the U.K. while taking measures to protect domestic U.S. steel manufacturing and production jobs.

6.3 Protect Domestic Consumers

By making foreign-produced goods more expensive, tariffs can make domestically-produced alternatives seem more attractive. Some products made in countries with fewer regulations can harm consumers, such as a product coated in lead-based paint. Tariffs can make these products so expensive that consumers won't buy them.

6.4 Protect National Interests

Tariffs can also be used as an extension of foreign policy as their imposition on a trading partner's main exports may be used to exert economic leverage. For example, when Russia invaded Ukraine, much of the world protested by boycotting Russian goods or imposing sanctions. In April 2022, President Joe Biden suspended normal trade with Russia. In June, he raised the tariff on Russian imports not prohibited by the April suspension to 35%.

7. Advantages of Tariffs

• Produce revenues: As discussed, tariffs provide a government a chance to bring in more money. This can relieve some of the tax burdens felt by a county's citizens and help the government to reduce deficits.
• Open negotiations: Tariffs can be used by countries to open negotiations for trade or other issues. Each side can use tariffs to help them create economic policies and talk with trade partners.
• Support a nation's goals: One of the most popular uses for tariffs is to use them to ensure domestic products receive preference within a country to support businesses and the economy.
• Make a market predictable: Tariffs can help stabilize a market and make prices predictable.

8. Disadvantages of Tariffs

• Create issues between governments: Many nations use tariffs to punish or discourage actions they disapprove of. Unfortunately, doing this can create tensions between two countries and lead to more problems.
• Initiate trade wars: A typical response for a country with tariffs imposed on it is to respond similarly, creating a trade war in which neither country benefits from the other.

For Prelims: Tariffs, Zero-sum game, Cross-border trade, World Trade Organisation  (WTO), North American Free Trade Agreement (NAFTA), United States-Mexico-Canada Agreement (USMCA), and the European Union (EU). For Mains: 1. What is a Tariff and explain why government imposes tariffs. Discuss the advantages and disadvantages associated with Tariffs. (250 Words).

Source: Investopedia

WEB 3

1. Context 

It is known as the decentralised web and it caters to the next generation of the Internet, leveraging blockchain technology to create a more open and transparent web is called Web3.

Web3 is built on top of existing Internet infrastructure and is not in competition with previous versions of the web platform.

It allows for the creation and exchange of digital assets, decentralised applications (d Apps) and smart contracts in the blockchain system.

2. About Blockchain

• Blockchain is a decentralised digital technology that is designed to securely store data in a way where hacking and compromising are not easy like in current mediums and variants of the Internet.
• It is best known for its use in cryptocurrencies like Bitcoin and Ethereum, which are used to store and transfer digital currencies securely and transparently.

3. Key features of Web3

• One of the key features of Web3 is that it provides users with greater control over their data and digital assets.
• Instead of relying on centralised intermediaries, it offers options and mediums for an individual to have more privacy and more importantly, security of the content and transactions.
• Web3 allows for peer-to-peer transactions and interactions, which means that users are in control of their data and can choose whom they share it with.
• This also means that Web3 is more secure, as there is no single point of failure that can be exploited by hackers.
• Another key feature of Web3 is the ability to create and use decentralised applications (dApps) and smart contracts.
• These dApps can be used for a variety of purposes, such as social media, finance, gaming and more.
• Many challenges need to be overcome before Web3 can become a mainstream technology, such as scalability, interoperability and user adoption.

4. Difference between Web3 and Web2

• Web2, also known as the centralised web, is the current version of the Internet.
• It is characterised by the dominance of large, centralised platforms such as Google, Facebook and Amazon.
• Among the main differences between Web2 and Web3 are:

4.1. Centralisation vs. Decentralisation

• Web2 IS centralised, meaning that data is stored on centralised servers owned and controlled by large corporations.
• In contrast, web3 is decentralised data that is stored on a decentralised network of computers that are owned and controlled by the users themselves.

4.2. Intermediaries vs peer-to-peer

• Web2 relies heavily on intermediaries such as banks, social media platforms and online marketplaces to facilitate transactions and interactions.
• Web3 enables peer-to-peer transactions and interactions, meaning that users can transact directly with one another without the need for intermediaries like banks, for example.

4.3. Data ownership and control

• In Web2, large corporations like Facebook and Google have significant control over user data and can monetise it in ways that users may not be comfortable with.
• In Web3, users can choose to share data only with those they trust.
• In Web2, users must trust intermediaries to keep their data and transactions secure.
• In Web3, users can trust the network itself to keep their data and transactions secure.

5. Challenges for Web3

• Scalability: This is one of the biggest challenges. The current infrastructure of blockchain networks can only handle a limited number of transactions per second.
• User Adoption: While blockchain technology has been around for over a decade, it is still relatively unknown.
• Interoperability: Web3 is being built by a wide range of developers and organisations, each with its unique vision for how the technology should be implemented.
• Complexity: Technology requires a certain level of technical expertise to use and understand.
• This may be a barrier to adoption for some users who are not comfortable with technology or do not have the necessary technical knowledge.

6. Usage of Web3

6.1. Cryptocurrencies

• They are built on blockchain technology, which is a key component of Web3.
• These digital currencies enable secure, decentralised transactions without the need for intermediaries.

6.2. Decentralised Finance (DeFi)

• DeFi is a movement that aims to build a new financial system on top of blockchain technology.
• DeFi applications enable users to borrow, lend and trade cryptocurrencies without the need for traditional financial intermediaries.

6.3. Decentralised Storage

• Web3 is being used to create decentralised social networks like Mastodon, which are designed to be more user-centric.
• Web3 is also being used to develop a decentralised identity verification system.

 

For Prelims: Web3, Web2, decentralised applications, blockchain technology, cryptocurrencies, Bitcoin, Ethereum, For Mains:  Share to Social View All Current affairs More Current Affairs DAILY CURRENT AFFAIRS, 06 OCTOBER 2023... 06-Oct-2023 Read more DAILY CURRENT AFFAIRS, 03 JULY... 03-Jul-2023 Read more DAILY CURRENT AFFAIRS, 06 DECEMBER 2023... 06-Dec-2023 Read more DAILY CURRENT AFFAIRS, 21 JULY 2023... 21-Jul-2023 Read more × × × Total Attempted: Not Attempted: Mark as Review: Submit Close Register now Sign Up Already have an account? Sign In Continue with google Close