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DAILY CURRENT AFFAIRS, 03 JANUARY 2025

PSLV ORBITAL EXPERIMENTAL MODULE-4 (POEM-4)

 
 
1. Context
 
Bellatrix Aerospace has announced that it has achieved the desired results from the Rudra High-Performance Green Propulsion System, which was onboard the POEM-4 in the recently launched PSLV C-60 mission
 
2. About POEM-4
 
  • The PS4-Orbital Experiment Module, known as POEM, involves utilizing the decommissioned fourth stage of the Polar Synchronous Launch Vehicle (PSLV).
  • This innovative platform allows the scientific community to conduct in-orbit microgravity experiments for up to three months, transforming what would otherwise become space debris after completing its primary mission of deploying payloads.
  • These experiments often serve as foundational tests to validate proof-of-concept ideas and enable technologies for future space missions.
  • The PSLV-C60 SpaDeX mission marks the fourth POEM mission, referred to as POEM-4. This mission will carry a total of 24 experimental payloads, including 14 from ISRO/DOS centers and 10 from various non-governmental entities (NGEs), such as academic institutions and startups, facilitated through IN-SPACe.
  • This represents a substantial increase in capacity compared to the previous POEM-3 mission, which hosted only eight payloads. Key features of the 24 POEM-4 payloads are outlined below
 
3. About POEM

POEM, developed by the Vikram Sarabhai Space Centre (VSSC), serves as a cost-effective space platform leveraging the spent fourth stage of a PSLV rocket. Initially introduced during the PSLV-C53 mission in June 2022, POEM orbits the Earth, conducting in-orbit scientific experiments with various payloads onboard.

Key Features

  • Utilizes solar panels mounted on the fuel tank of the rocket's fourth stage and a lithium-ion battery.
  • Ensures altitude stabilisation and includes helium control thrusters. Equipped with four Sun sensors, a magnetometer, and gyroscopes, the NGC system communicates with ISRO's NavIC satellite constellation for navigation.
  • Facilitates communication with ground stations.

ISRO's pioneering reuse of the spent fourth stage of its rocket was demonstrated during the PSLV C44 mission in 2019. Following the successful deployment of satellites into their designated orbits, the fourth stage, carrying the student payload Kalamsat-V2, was manoeuvred to a higher circular orbit of 443 km. It remained there, catering to the payload's operational needs.

 
4. Achievements of POEM-3
 

ISRO launched the PSLV C-58 mission from the Satish Dhawan Space Centre in Sriharikota on January 1.

  • Following the successful deployment of the XPoSat satellite into its designated orbit of 650 km, the fourth stage of the rocket was repurposed into POEM-3 and manoeuvred to a circular orbit 350 km above Earth's surface. Lower orbits entail increased atmospheric drag, demanding higher energy consumption to maintain orbit.
  • POEM-3 carried nine payloads, including contributions from various organisations such as VSSC, Bellatrix Aerospace Pvt Ltd, and several startups and educational institutions. By its 25th day, completing 400 orbits, the payloads were activated for experimentation. Notably, ARKA200, RUDRA, and LEAP-TD finalized their experiments, while data from other payloads were collected after each orbit for subsequent ground analysis. Additionally, fuel cells from VSSC demonstrated their power generation capabilities.
  • over two months, POEM-3 underwent preparations for re-entry while being tracked by ISRO's Telemetry, Tracking, and Command Network stations across various locations. The Multi-Object Tracking Radar (MOTR) at Sriharikota was also utilised for tracking purposes.

 

5. Significance of Minimizing Space Debris

 

As the number of satellites orbiting Earth continues to rise, the issue of space debris has become increasingly critical. Space debris, predominantly found in the low Earth orbit (LEO), encompasses fragments of spacecraft, rockets, defunct satellites, and remnants from anti-satellite missile tests. With velocities reaching up to 27,000 km/hr, these debris pose a significant threat to various space assets due to their mass and momentum.

  • The LEO, spanning from 100 km to 2000 km above the Earth's surface, hosts satellites crucial for intelligence gathering, encrypted communication, and navigation. According to ISRO's Space Situational Assessment Report 2022, the global space community launched 2,533 objects into space through 179 launches in 2022. Additionally, while space debris exists in smaller quantities in the geosynchronous orbit (GEO) at 36,000 km altitude, it still poses risks to operational satellites.
  • Presently, around 7,000 operational satellites orbit Earth at various altitudes, alongside millions of space debris pieces. Tracking and cataloguing efforts, led by entities like the U.S. Space Command, focus on debris larger than 10 centimetres in LEO and larger than 0.3-1 meters in GEO.
  • ISRO's successful implementation of the PSLV-C58/XPoSat mission, particularly the utilization of POEM-3 to minimize space debris, marks a significant step in addressing this pressing issue. By repurposing the final stage of the PSLV rocket into an orbital platform and subsequently de-orbiting it, ISRO has demonstrated a proactive approach towards mitigating space debris accumulation. This achievement not only ensures the safety of existing space assets but also sets a precedent for responsible space exploration and satellite deployment practices.

 

6. Approaches to Addressing Space Debris

 

The latest incident involving space debris occurred on March 8, highlighting the growing concern over its impact. A discarded battery pallet from the International Space Station caused damage to a house in Florida.

  • With the launch of more communication satellites/constellations and the conduct of anti-satellite tests, instances of on-orbit breakup and collisions are on the rise. These events generate smaller debris fragments, contributing to the overall debris population. ISRO estimates that the number of space objects larger than 10 cm in size in LEO could reach approximately 60,000 by 2030. Additionally, the accumulation of debris in certain regions of orbit can create unusable zones, potentially leading to a cascading effect of collisions and further debris generation.
  • Currently, there are no specific international space laws governing LEO debris. However, most spacefaring nations adhere to the Space Debris Mitigation Guidelines 2002 established by the Inter-Agency Space Debris Coordination Committee (IADC), which the U.N. endorsed in 2007. These guidelines serve as a framework for mitigating the generation of space debris and minimizing its impact on space operations.

Key Strategies

  • Active Debris Removal (ADR): Several agencies and organizations are researching and developing technologies for actively removing debris from orbit. ADR methods include capturing debris with nets, harpoons, or robotic arms, and then either de-orbiting it or moving it to a graveyard orbit.
  • Space Traffic Management (STM): Efforts are underway to improve tracking and monitoring of space objects to minimize the risk of collisions. STM involves enhancing communication and coordination among satellite operators and space agencies to mitigate the risk of collisions and avoid generating additional debris.
  • Design for Demise: Satellite manufacturers are exploring ways to design satellites and rocket stages to safely re-enter Earth's atmosphere at the end of their operational lives, ensuring they burn up completely and minimize the generation of debris.
 
7. The Way Forward
 
The continued research and development in debris mitigation technologies, along with enhanced coordination and cooperation among stakeholders, will be imperative to effectively manage space debris and maintain a safe and sustainable space environment for future generations.
 
 
For Prelims: ISRO, PSLV-C58, XPoSat mission, Space Debris Mitigation Guidelines 2002, Inter-Agency Space Debris Coordination Committee 
 
For Mains: 
1. Examine the challenges posed by space debris in Earth's orbit and the potential risks it poses to space assets. Evaluate ISRO's approach in minimizing space debris through the utilization of POEM-3, and discuss its implications for future space exploration endeavors. (250 Words)
 
 
Previous Year Questions
 
1. With reference to India's satellite launch vehicles, consider the following statements: (UPSC 2018)
1. PSLVs launch satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites.
2. Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth.
3. GSLV Mk III is a four-stage launch vehicle with the first and third stages using solid rocket motors, and the second and fourth stages using liquid rocket engines.
Which of the statements given above is/are correct?
A. 1 only
B. 2 and 3
C. 1 and 2
D. 3 only
 
Answer: A
 
Source: The Hindu, ISRO
 

ARTICLE 370

 

1. Context

The Supreme Court is set to hear on July 11 a batch of nearly 23 petitions challenging the Centre’s decision to abrogate Article 370 of the Constitution, which had given special status to Jammu and Kashmir.

A five-judge Bench headed by CJI Chandrachud will be hearing the pleas alongside Justices Sanjay Kishan Kaul, Sanjiv Khanna, BR Gavai, and Surya Kant. Notably, the court’s decision to consider these pleas comes almost four years after the erstwhile state of Jammu and Kashmir was reconstituted into the two Union Territories of J&K and Ladakh on August 5, 2019.

2. Article 370 of the Indian Constitution

Article 370 of the Indian Constitution is a provision that granted special autonomous status to the state of Jammu and Kashmir (J&K). It played a crucial role in shaping the relationship between the Indian government and the region but has also been a topic of intense debate and controversy. This article aims to provide an overview of Article 370, its historical context, key provisions, and the debates surrounding its revocation.

3. Historical Context

Article 370 was incorporated into the Indian Constitution in 1949, during the process of integrating the princely states into the newly independent India. At the time, Jammu and Kashmir was a princely state ruled by Maharaja Hari Singh. The article was introduced to accommodate the unique circumstances of the region and to respect the wishes of its people.

4. Key Provisions of Article 370:

  • Autonomy: Article 370 granted Jammu and Kashmir a certain degree of autonomy, allowing it to have its own constitution, flag, and the power to legislate on matters other than defense, foreign affairs, and communications.
  • Application of Central Laws: The central government had limited jurisdiction in the state, and its laws were only applicable if the state government specifically consented.
  • Dual Citizenship: Residents of Jammu and Kashmir were considered citizens of both the state and India. This provision was meant to preserve the distinct identity of the region.

5. Contemporary Debates and Criticisms:

  • Integration vs. Alienation: Critics of Article 370 argued that it perpetuated a sense of separatism and hindered the integration of Jammu and Kashmir with the rest of India. They claimed that the special status prevented the extension of progressive laws and policies to the region.
  • Gender Inequality: Another point of contention was the discriminatory provision that denied property rights to women who married individuals from outside the state. This provision was seen as undermining the principles of gender equality and human rights.
  • National Security Concerns: Some argued that the autonomous status provided by Article 370 hindered the Indian government's ability to effectively tackle security challenges in the region, particularly the cross-border militancy.

6. Revocation of Article 370

In August 2019, the Indian government, under the leadership of Prime Minister Narendra Modi, made the historic decision to revoke the special status of Jammu and Kashmir. The government argued that this move would facilitate the integration of the region and bring socio-economic development to its people. However, the revocation was met with mixed reactions, both within and outside of the region.

7. Way forward

Article 370 of the Indian Constitution was a unique provision that granted special autonomous status to the state of Jammu and Kashmir. While it aimed to respect the aspirations of the people of the region, it also sparked debates and controversies. The decision to revoke Article 370 in 2019 marked a significant shift in the relationship between the Indian government and Jammu and Kashmir. The consequences of this decision, both positive and negative, are still unfolding, and the future trajectory of the region remains uncertain.

For Prelims: Article 370, Jammu and Kashmir (J&K), Maharaja Hari Singh, Central laws, Dual Citizenship, Gender inequality.

For Mains: 1. Discuss the historical background and significance of Article 370 of the Indian Constitution. Analyze its provisions and their impact on the governance and autonomy of Jammu and Kashmir. (250 words).

 

Previous year Question

1. When did the Constitution of Jammu and Kashmir come into force? (UPSC CAPF 2016)

A.26th January 1957

B. 15th August 1947

C. 25th July 1956

D.14th November 1947

Answer: A

2. State Legislature of Jammu and Kashmir can confer special rights and privileges on permanent residents of J and K with respect to - (MPSC 2019)

Find the correct options below.

(a) Employment under State Government

(b) Settlement in the state

(c) Acquisition of immovable property

(d) Right to Scholarship

(e) Right to entry into heritage sites

A.  (a), (b), (c), (d), (e)

B. (a), (b), (c), (d)

C. (a), (b), (c)

D. (a), (b)

Answer: B

 
Source: Indianexpress
 

 

GM CROP REVOLUTION

 

1.Context

 The Union Ministry of Environment, Forest and Climate Change has amended the rules governing the selection of experts to the Genetic Engineering Appraisal Committee (GEAC), the apex technical body regulating genetically modified (GM) seeds in India

2.GM crops scenario Across the Globe

 GM crops have spread around the world since 1996. By 2019, roughly 190 million hectares were under GM crops, led by corn and soyabean in the US, Brazil, Argentina, and canola (rapeseed/mustard) in Canada, with no harmful impact on human or animal health or the environment per se. Even Bangladesh has marched ahead with Bt brinjal. More than 70 countries have accepted the use of GM crops

3. History of BT crops in India

 The First GM crop, Bt cotton, was released in 2002 by the Vajpayee government. He extended the original slogan of “Jai jawan, Jai Kisan” (salutation to the soldier and the farmer), given by Lal Bahadur Shastri, to include “Jai Vigyan” (salutation to science)

4. BT cotton

  • Cotton production increased remarkably from a mere 13.6 million bales (1 bale = 170 kg) in 2002-03 to 39.8 million bales in 2013-14, registering an increase of 192 per cent in just 12 years, ushering the famous "gene revolution".
  • Cotton productivity increased from 302 kg per hectare in 2002-03 to 566 kg per hectare in 2013-14, an increase of 76 per cent, while the area under cotton cultivation expanded by 56 per cent, of which about 95 per cent is under Bt cotton.
  •  But more important are the gains to cotton farmers whose incomes increased significantly. It won't be an exaggeration to say that Bt cotton led Gujarat's "agrarian miracle" of a very high (above 8 per cent) annual growth rate in agri-GDP during 2002-03 to 2013-14.
  •  It made India the second-largest producer after China, and the second-largest exporter after the US, of cotton in the world today.

5. The Genetic Engineering Appraisal Committee (GEAC) -

  1. It functions under the Ministry of Environment, Forest And Climate Change, and the Genetic Engineering Appraisal Committee (GEAC) is the country’s biotech regulator.
  2.  As per Rules, 1989, it is responsible for the appraisal of activities involving large-scale use of hazardous microorganisms and recombinants in research and industrial production from the environmental angle.
  3. The committee is also responsible for the appraisal of proposals relating to the release of genetically engineered (GE) organisms and products into the environment including experimental field trials.

6.Debate over BT

Several concerns have been expressed by NGOs, civil society groups, and farmers' groups from time to time to emphasize the risks associated with GM crops. Some of these include —, enhanced sucking pest damage in Bt cotton; an increase in secondary pests such as mired bugs and Spodoptera; exposure to a greater risk of monopoly in the seed business.

6.1..Bio-safety of human and animal health

  1. Risk of toxicity, due to the nature of the product or the changes in the metabolism and the composition of the organisms resulting from gene transfer.
  2. Newer proteins in transgenic crops from organisms, which have not been consumed as foods, sometimes have the risk of these proteins becoming allergens.
  3. Genes used for antibiotic resistance as selectable markers have also raised concerns regarding the transfer of such genes to microorganisms and thereby aggravate the health problems due to antibiotic resistance in the disease-causing organisms.

6.2..Ecological concerns

  1. Gene flow due to cross-pollination for the traits involving resistance can result in the development of tolerant or resistant weeds that are difficult to eradicate.
  2. GM crops could lead to the erosion of biodiversity and pollute gene pools of endangered plant species.
  3. Genetic erosion has occurred as the farmers have replaces the use of traditional varieties with monocultures.

6.3.Environmental concerns

  1. Effect of transgenic plants on population dynamics of target and non-target pests, secondary pest problems, insect sensitivity, the evolution of new insect biotypes, environmental influence on gene expression, development of resistance in the insect population, development of resistance to the herbicide
  2. Gene escapes into the environment- accidental cross-breeding GMP plants and traditional varieties through pollen transfer can contaminate the traditional local varieties with GMO genes resulting in the loss of traditional varieties of the farmers.

 

For Prelims - The Genetic Engineering Appraisal Committee

 

NON COMMUNICABLE DISEASES

 

1. Context

Obesity is a chronic disease defined by excessive fat deposits that can impair an individual’s health. Obesity increases risk of diabetes, hypertension, and heart disease. It also increases the risk of certain cancers and greatly influences quality of living factors, such as sleep and mobility

2. Non-Communicable Diseases

  • Non-communicable diseases (NCDs) are chronic medical conditions that are not caused by infectious agents and cannot be transmitted from person to person. These diseases typically have a long duration and progress slowly over time.
  • NCDs are also referred to as chronic diseases and are often characterized by complex and multifactorial causes, including genetic, lifestyle, environmental, and behavioral factors.
  • NCDs are a major global health concern, accounting for a significant proportion of morbidity, disability, and premature mortality worldwide.
  • They impose a substantial burden on individuals, families, healthcare systems, and economies. Risk factors for NCDs include unhealthy diets, physical inactivity, tobacco use, harmful use of alcohol, and environmental factors such as air pollution.
  • Prevention and control strategies for non-communicable diseases involve a combination of health promotion, early detection, access to quality healthcare services, lifestyle modifications, and effective management of existing conditions.
  • Public health interventions aim to reduce NCD risk factors and promote healthy behaviors to mitigate the impact of these diseases on individuals and populations.

3. Findings of the Study on Non-communicable Diseases in India

  • Diabetes and Prediabetes: India has 101 million people with diabetes and 136 million with prediabetes.
  • High Blood Pressure: 315 million people in India were found to have high blood pressure.
  • Obesity: Generalized Obesity: 254 million individuals in India were classified as obese. Abdominal Obesity: 351 million people in India had abdominal obesity.
  • Hypercholesterolemia and High LDL Cholesterol: Hypercholesterolemia: 213 million individuals in India had high cholesterol levels. High LDL Cholesterol: 185 million people had elevated low-density lipoprotein (LDL) cholesterol.
  • Study Details: The study was funded by the Indian Council of Medical Research and the Department of Health Research, Ministry of Health and Family Welfare. The Madras Diabetes Research Foundation coordinated the decade-long nationwide study. The findings of the study will be published in The Lancet Diabetes and Endocrinology journal.

4. Significance of the Study on Non-communicable Diseases in India

  • Comprehensive Epidemiological Research: The study is the first comprehensive epidemiological research paper on non-communicable diseases in India. It includes participants from 31 states and some Union Territories, with a large sample size of 1,13,043 individuals.
  • Increased Prevalence of NDCs: The study reveals that diabetes, hypertension, obesity, and dyslipidemia are more common in India than previously estimated. It highlights the urgent need for preventive measures and healthcare interventions to address the high prevalence of these diseases.
  • Rural Diabetes Explosion: While urban areas currently have higher rates of metabolic NCDs, except for prediabetes, the study warns of an upcoming diabetes explosion in rural India if left unregulated.
  • Inter-regional Variations: The study identifies variations in disease prevalence among different states and regions. Goa, Puducherry, and Kerala have the highest diabetes prevalence, while Sikkim has a high prevalence of Prediabetes, and Punjab has the highest hypertension rates.
  • Implications for Policy: The findings highlight the need for state-specific policies and interventions to address the rising epidemic of metabolic NCDs in India. Urgent actions are required to stabilize diabetes rates in developed states and control the increasing prevalence in other regions.
  • Study Details: The research used a cross-sectional, population-based survey of adults aged above 20 years. The study employed a stratified, multistage sampling design and is titled "Metabolic non-communicable health report of India- the ICMR-INDIAB National Cross-sectional Study.

5. Impact of Rising NCDs in India:

  • Increased Burden of Diabetics and Hypertensive Individuals: Over the past four years, India has experienced a significant increase in the number of people affected by diabetes and hypertension. Generalized and abdominal obesity are contributing factors to this growing burden.
  • Warning Signs for Future Health Issues: The study serves as an early warning, highlighting that if left uncontrolled, this population is at high risk of developing non-communicable diseases (NCDs) and life-altering medical conditions, including strokes.
  • Dual Problem of Malnutrition and Obesity: Experts explain that India faces a dual problem of malnutrition and obesity. Although surplus food is available, factors such as exposure to fast food, lack of sleep, inadequate exercise, and increased stress contribute to the perfect environment for NCDs to thrive.

6. Addressing the Rising NCDs

  • The solution to combating NCDs lies in adopting a wellness approach and embracing a lifestyle that includes a healthy diet and regular exercise.
  • The Health Ministry recognizes four major NCDs Cardiovascular diseases, cancers, chronic respiratory diseases, and diabetes.
  • These diseases share common behavioral risk factors, including unhealthy diet, lack of physical activity, and tobacco and alcohol use.
  • The Health Ministry has implemented Programs to strengthen health infrastructure and develop human resources.
  • Health-promotion initiatives and awareness campaigns focus on prevention, early diagnosis, and ensuring appropriate referrals for NCDs.
For Prelims: Non-Communicable Diseases, Diabetes, and Prediabetes, Low-density lipoprotein (LDL) cholesterol, and ICMR.
For Mains: 1. Explain the significance of the study on metabolic non-communicable diseases (NCDs) in India and their implications for public health policies. (250 Words).
 Source: The Hindu
 

PANAMA TREATY

 
1. Context
 
On December 22, 2024, Donald Trump threatened to take back the Panama canal, calling the transfer treaty “foolish”. He said, “Our Navy and Commerce have been treated in a very unfair and injudicious way....we will demand that the Panama canal be returned to us, in full, and without question.” Panama’s President José Raúl Mulino rejected Trump’s threat, and said, “I want to express precisely that every square metre of the Panama canal and its adjacent area belong to Panama, and will continue to belong to Panama.”
 
A detailed illustration depicting the Panama Canal and the historical significance of the Panama Treaty. The image shows the canal with ships navigating through its locks, lush tropical surroundings, and reservoirs like Gatun Lake. To represent the treaty, a symbolic handshake between figures representing the United States and Panama is shown in the foreground, with the Torrijos-Carter Treaties document visible. The atmosphere reflects diplomacy and engineering marvels, capturing the essence of international cooperation.
 
2. What is the US-Panama Treaty?
 
  • The Panama Treaty, more formally known as the Torrijos-Carter Treaties, is a pair of agreements signed on September 7, 1977, between the United States and Panama.
  • These treaties were historic because they marked the transfer of control over the Panama Canal from the United States to Panama and laid the groundwork for the eventual end of U.S. jurisdiction in the canal zone.
  • The treaties were named after the leaders of the two nations at the time: General Omar Torrijos, the military leader of Panama, and President Jimmy Carter of the United States.
  • For decades before this agreement, the Panama Canal had been under U.S. control, following the 1903 treaty between the two nations, which granted the U.S. rights to build and manage the canal and govern the surrounding "Canal Zone."
3.Torrijos-Carter Treaty
 

The canal, a critical waterway connecting the Atlantic and Pacific Oceans, was not just a strategic military asset but also a vital economic route. However, the arrangement heavily favored the U.S., leading to widespread resentment among Panamanians who saw it as a symbol of foreign domination and economic injustice.

The Torrijos-Carter Treaties had two parts:

  • The Panama Canal Treaty: This agreement nullified the 1903 treaty, stating that the U.S. would transfer control of the canal to Panama on December 31, 1999. Until then, the U.S. would operate and defend the canal while gradually transferring management responsibilities to Panama.

  • The Neutrality Treaty: This established that the canal would remain neutral and open to ships of all nations, even during wartime. The U.S. retained the right to intervene militarily to defend the canal's neutrality, if necessary

These treaties were significant in reshaping U.S.-Latin American relations. They addressed long-standing grievances in Panama and were seen as a step toward respecting the sovereignty of smaller nations. However, they were controversial in the U.S., with critics arguing that giving up control of such a strategically valuable asset could compromise national security and economic interests.
The treaties were ratified by the U.S. Senate in 1978, albeit with considerable debate and amendments, and they remain an essential example of international negotiation aimed at resolving historical injustices while maintaining global cooperation. Today, the Panama Canal is fully under Panamanian control and is a vital part of the country's economy and global trade infrastructure
 
4. Latest Controversy by Trump Government
 
  • The primary concern for the U.S. President-elect stems from the steep transit fees imposed on American vessels by the Panama Canal Authority (ACP). In 2023, a severe drought affected Lakes Gatun and Alhajuela, which are crucial for operating the canal's locks.
  • This water shortage forced the ACP to cut the number of ship transit slots by 36%, leading to higher transit fees.
  • Another significant issue is the growing Chinese presence in the Panama Canal region. Since Panama became the first Latin American nation to join the Belt and Road Initiative (BRI) in 2017, Chinese investments have surged.
  • Hutchison Ports PPC, a subsidiary of a Hong Kong-based company, manages two ports at the canal’s entrances, raising concerns about China's influence on logistical operations and its potential to monitor U.S. naval activities
Panama's Response
 
Panama’s President José Raúl Mulino has dismissed the allegations made by Mr. Trump, defending both the canal's transit fees and its operational integrity. He explained that the transit rates are established through a formal process based on international standards. President Mulino also refuted claims of external powers, such as China or the European community, influencing the canal, stressing Panama’s commitment to maintaining its sovereignty. Addressing Mr. Trump’s assertion about the presence of Chinese soldiers in the canal, he firmly stated, “There is not a single Chinese soldier in the canal, nor will there ever be.”
 
 
5. Way Forward
 
The issues surrounding fee increases and logistical operations are expected to be addressed through diplomatic channels, despite Mr. Trump’s threats. While the United States may seek to influence Panama and push for renegotiations, Panama is likely to seek international backing to assert its sovereignty. In response to the allegations, China has also issued a statement. Foreign Ministry spokesperson Mao Ning emphasized that the Panama Canal is a remarkable achievement of the Panamanian people and serves as a neutral passageway. He further affirmed China’s respect for Panama’s sovereignty
 
 
 
For Prelims: Panama Treaty, Panama Canal
 
For Mains: GS II - International Relations: US-Panama Treaty
 
Source: The Hindu

LAND ACQUISITION ACT 2013

 
 
 
1. Context
 
Farmers from Punjab have been camping at the Khanauri and Shambhu borders of Punjab and Haryana since February, demanding legal recognition for the Minimum Support Price (MSP) of crops, along with several other demands from the central government. One of their key demands is the implementation of the Land Acquisition Act of 2013.
 
2. Land Acquisition Act 2013
 
  • The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013, commonly referred to as the Land Acquisition Act, 2013, was introduced by the Central Government to replace the outdated Land Acquisition Act of 1894.

  • This Act provides a contemporary framework for land acquisition, ensuring equitable compensation and rehabilitation for affected families. Effective from January 1, 2014, with amendments introduced in 2015, it has faced criticism from protesting farmers who claim it is not being fully implemented as intended.

  • The Act's core features include fair compensation and consent requirements. Landowners are entitled to compensation amounting to twice the market value in urban areas and four times the market value in rural areas. Consent from 70% of affected families is necessary for Public-Private Partnership (PPP) projects, and 80% consent is required for private company acquisitions.

  • The acquisition of irrigated multi-cropped land is restricted within state-specified limits. If fertile land is acquired, the government is obligated to develop an equivalent area of wasteland for agriculture.

  • Individuals dissatisfied with an award under the Act may approach the Land Acquisition, Rehabilitation, and Resettlement (LARR) Authority for dispute resolution.

  • The Act mandates a Social Impact Assessment (SIA) to assess the social, environmental, and economic implications of land acquisition.

  • Rehabilitation and Resettlement (R&R) provisions under the Act include:
    📍 Housing for displaced families.
    📍 Financial aid for loss of livelihood.
    📍 Employment or annuity-based income for dependent families.
    📍 Infrastructure development in resettlement areas, including roads, schools, and healthcare facilities.

  • To prevent arbitrary acquisitions, the Act defines "public purpose," covering infrastructure projects, urbanization, and industrial corridors. If acquired land remains unused for five years, it must either be returned to the original owners or transferred to a land bank.

  • Certain projects, such as those related to defence, railways, and atomic energy, are exempt from the Act, but compensation and R&R provisions remain applicable. Transparency is promoted through public hearings and access to SIA reports, with additional benefits and consultation processes for Scheduled Castes (SCs) and Scheduled Tribes (STs)

 
 
 
Challenges in implementing the Landing Acquisition Act
 
Experts highlight several challenges that hinder the effective implementation of the Act. These include:
📍 Lengthy procedural requirements that frequently cause delays in acquiring land for development projects.
📍 High compensation costs that can create financial burdens for both public and private project budgets.
📍 The ongoing struggle to balance development objectives with the principles of social justice, which remains a sensitive and debated issue
 
 
3. Colonial Period and Land System
 

To strengthen their control in India, the British recognized the need to standardize the revenue collection system. They negotiated various agreements with different sections of the peasantry across regions. By the time of Independence, three primary forms of land tenure were in place: the zamindari system, the ryotwari system, and the mahalwari system.

  • Zamindari System:
    Under the zamindari system, land was owned by landlords who were solely responsible for paying land revenue. However, the actual cultivation was carried out by tenants under the control of absentee landlords. The system had two variations:
    (i) Permanent Settlement: Here, the revenue owed by landlords was fixed and unchangeable. Landlords supervised the land while tenants handled the cultivation and labor. This system was prevalent in regions like Bengal, Orissa, Banaras, and parts of Madras.
    (ii) Periodic Settlement: In this version, the revenue payable by landlords was revised periodically. It was implemented in areas such as the central provinces of Uttar Pradesh, Punjab, and the Central Provinces (C.P.).

  • Ryotwari System:
    In this system, the cultivators, known as ryots or peasant proprietors, owned and worked on the land. The state retained authority over the ryots, and land revenue was assessed for each individual holding, making the ryot directly responsible for payment. Revenue settlements under this system were temporary.
    The ryotwari system was introduced in 1792 by Captain Read and Thomas Munro in the Bara Mahal district. It was later expanded to regions like Bombay, Assam, and Bihar.

  • Mahalwari System:
    This system involved collective ownership of land by the village community, although individuals carried out the cultivation. The village community was tasked with collecting and paying revenue to the state.
    The Mahalwari system was primarily found in Punjab, Agra, and Awadh. Villages were divided into mahals, which were designated areas for the payment of land revenue

 
4. Court Rulings on Land Acquisition Act
 
  • The Supreme Court clarified that land acquisition proceedings initiated under the Land Acquisition Act of 1894 do not lapse if compensation has been tendered, even if possession has not been taken.
  • The ruling overruled earlier conflicting judgments and established that the mere delay in taking possession does not annul the acquisition process
  • The Court held that if compensation has not been paid or deposited with the landowner or a designated authority, the acquisition proceedings initiated under the 1894 Act would lapse
  • The Supreme Court reiterated that land acquisition proceedings do not lapse if the authorities demonstrate a genuine attempt to pay compensation, even if the landowner refuses to accept it.
  • The Court stated that compensation must be made available in a designated account if landowners are unavailable
  • The Supreme Court held that land acquisition for private entities must clearly serve a public purpose, and mere claims of economic development are insufficient
 
For Prelims: Key Provisions of the LARR Act, 2013, Ryotwari, Zamindari, and Mahalwari systems
For Mains: GS Paper II – Governance and Social Justice
 
Source: Indianexpress
 

WHOLESALE PRICE INDEX (WPI)

 
 
1. Context

The Centre announced the formation of an expert panel to revise the constituents of the country’s Wholesale Price Index (WPI) in light of the structural changes in the economy that have occurred between 2011-12, the current base year for the critical price gauge, and 2022-23 that would be the new base year

 

2. What is the Wholesale Price Index(WPI)?

The Wholesale Price Index (WPI) is a measure of the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses or retailers. It is one of the key indicators used to measure inflation and economic performance in a country.

WPI tracks the average price changes of goods at the wholesale level, providing insights into inflationary pressures in the economy. It includes various categories of goods such as agricultural products, industrial raw materials, fuel and power, and manufactured goods.

Governments and policymakers use WPI data to monitor inflation trends, formulate monetary and fiscal policies, and assess the overall health of the economy. It serves as a crucial tool for businesses to adjust pricing strategies, forecast costs, and make informed decisions regarding production and investment

3. Importance of WPI

 

The Wholesale Price Index (WPI) holds several significant roles in economic analysis and policymaking:

  • WPI is a key indicator used to measure inflationary pressures in the economy. By tracking changes in the prices of goods at the wholesale level, it provides insights into the direction and magnitude of inflation. This data is crucial for policymakers in formulating monetary and fiscal policies to maintain price stability
  • WPI serves as a barometer of economic performance, reflecting changes in production costs, input prices, and overall market conditions. Fluctuations in WPI can indicate shifts in supply and demand dynamics, business confidence, and economic activity levels
  • Governments and central banks rely on WPI data to formulate and adjust monetary and fiscal policies. By assessing inflationary trends captured by WPI, policymakers can make informed decisions regarding interest rates, money supply, taxation, and government spending to achieve macroeconomic objectives such as price stability, economic growth, and employment generation
  • Businesses utilize WPI as a tool for forecasting production costs and adjusting pricing strategies. By monitoring changes in wholesale prices of goods, companies can anticipate future cost pressures, optimize supply chain management, and make pricing decisions to maintain profitability and competitiveness in the market
  • WPI data is also crucial for analyzing trends in international trade. Changes in wholesale prices can affect export competitiveness, import demand, and trade balances. Policymakers use WPI information to assess the impact of exchange rate fluctuations, trade policies, and global economic conditions on domestic industries and trade relations
4. What is the Consumer Price Index(CPI)?
 

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is one of the most widely used indicators for tracking inflation and assessing changes in the cost of living over time.

CPI is calculated by collecting price data for a representative sample of goods and services that are typically purchased by urban consumers. The prices of these items are then aggregated and weighted according to their relative importance in the average consumer's expenditure. The resulting index reflects the average price level experienced by consumers

CPI is used by governments, central banks, businesses, and households for various purposes:

  • CPI is primarily used to measure inflation, which is the rate at which the general level of prices for goods and services is rising. By tracking changes in the CPI over time, policymakers can gauge the extent of inflationary pressures in the economy and adjust monetary and fiscal policies accordingly
  • Many labour contracts, pension plans, and government benefits are indexed to CPI. This means that payments or wages are adjusted periodically based on changes in the CPI to maintain purchasing power and account for changes in the cost of living
  • Central banks often use CPI as a key input in their monetary policy decisions. By targeting a specific inflation rate, central banks aim to achieve price stability and support sustainable economic growth. CPI data helps policymakers assess whether monetary policy actions are effectively controlling inflation
  • Investors and financial analysts use CPI data to adjust their investment strategies and financial planning. Understanding inflation trends can help investors anticipate changes in interest rates, bond yields, and stock market performance, which in turn influence investment decisions
  • CPI data provides insights into consumer behavior and spending patterns. Changes in the prices of specific goods and services reflected in the CPI can affect consumer preferences, purchasing decisions, and overall economic activity
5.What is the distinction between WPI and CPI?
 
Subject Wholesale Price Index (WPI) Consumer Price Index (CPI)
Scope of Goods and Services Measures changes in prices of goods traded in bulk by wholesalers, including raw materials, intermediate goods, and finished goods. Tracks changes in prices of goods and services purchased by households for consumption, including food, housing, transportation, etc.
Target Audience Relevant to businesses, policymakers, and analysts involved in production, manufacturing, and trade. Important for individuals, households, labor unions, and policymakers involved in setting wages, pensions, and social security benefits.
Weighting and Composition Based on a fixed basket of goods and services weighted according to their relative importance in wholesale trade. Based on a basket of goods and services representative of urban consumer spending patterns.
Policy Implications Changes in WPI affect production costs, supply chain management, and business profitability. Used by policymakers to assess inflation trends and formulate industrial and trade policies. Changes in CPI directly impact the cost of living for households and influence consumer behavior, purchasing power, and welfare. Used by policymakers to adjust wages, social benefits, and taxation policies.
 
6. Way Forward
 
Both WPI and CPI are measures of price levels, they differ in their scope, target audience, composition, and policy implications. WPI focuses on wholesale trade and production costs, while CPI reflects consumer spending patterns and the cost of living for households
 
For Prelims: Consumer Price Index, Wholesale Price Index, Inflation,  retail inflation, Producer Pirce Index, National Statistical Office, OPEC+, Crude oil, Kharif season, Monsoon, 
For Mains: 
1. Analyse the factors contributing to high food inflation in India in recent months. Discuss the impact of high food inflation on the Indian economy and suggest measures to mitigate it. (250 words)
2. Explain the concept of sticky inflation. What are the various factors that contribute to sticky inflation? Discuss the implications of sticky inflation for the Indian economy. (250 words)
 
 
Previous Year Questions
 
1. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
 
Answer: C
 
2. With reference to India, consider the following statements: (UPSC 2010)
1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.
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
 
3. Consider the following statements: (UPSC 2020)
1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct?
 A. 1 and  2 only       B. 2 only       C. 3 only           D. 1, 2 and 3
 
4. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct? 
A. 1 and 2 only          B. 2 and 3 only        C. 1 and 3 only          D. 1, 2 and 3
 
Answer: B
 
 
5. The Public Distribution System, which evolved as a system of management of food and distribution of food grains, was relaunched as _______ Public Distribution System in 1997. (SSC JE EE 2021) 
A. Evolved         B. Transformed      C. Tested            D. Targeted
 
Answer: D
 
6. Under the Antyodaya Anna Yojana, up to what quantity of rice and wheat can be purchased at a subsidised cost? (FCI AG III 2023) 
A. 35 kg          B. 40 kg          C. 30 kg           D. 25 kg           E. 50 kg
 
Answer: A
 
7. As per the the National Statistical Office (NSO) report released on 7 January 2022, India's Gross domestic product (GDP) is expected to grow at ___________ per cent (in first advance estimates) in the fiscal year 2021-22?  (ESIC UDC 2022) 
A. 17.6 per cent     B. 9.5 per cent     C. 11 per cent        D. 9.2 per cent   E. None of the above
 
Answer: D
 
8. The main emphasis of OPEC (Organisation of the Petroleum Exporting Countries) is on which of the following? (UKPSC 2016)
A. The production of petroleum
B. Control over prices of petroleum
C. Both (a) and (b)
D. None of the above
 
Answer: C
 
9. In the context of global oil prices, "Brent crude oil" is frequently referred to in the news. What does this term imply? (UPSC 2011)
1. It is a major classification of crude oil.
2. It is sourced from the North Sea.
3. It does not contain sulfur.
Which of the statements given above is/are correct?
A. 2 only    B. 1 and 2 only        C. 1 and 3 only         D. 1, 2 and 3
 
Answer: B
 
10. The term 'West Texas Intermediate', sometimes found in news, refers to a grade of (UPSC 2020)
A. Crude oil   B. Bullion         C. Rare earth elements       D.  Uranium
 
Answer: C
 
11. With reference to the cultivation of Kharif crops in India in the last five years, consider the following statements: (UPSC 2019)
1. Area under rice cultivation is the highest.
2. Area under the cultivation of jowar is more than that of oilseeds.
3. Area of cotton cultivation is more than that of sugarcane.
4. Area under sugarcane cultivation has steadily decreased.
Which of the statements given above are correct? 
A. 1 and 3 only        B.  2, 3 and 4 only        C. 2 and 4 only         D. 1, 2, 3 and 4
 
Answer: A
 
Source: The Hindu

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