SIPRI REPORT
The indigenization of defense refers to the process by which a country seeks to develop its own domestic defense industry and capabilities, rather than relying extensively on foreign suppliers for its defense needs. This often involves initiatives such as promoting domestic defense research and development, fostering partnerships between government, academia, and industry, and investing in the production of defense equipment and technologies within the country.
Indigenization is often pursued for several reasons:
-
National Security: By developing indigenous defense capabilities, a country can reduce its dependence on foreign suppliers, thus enhancing its national security and sovereignty.
-
Economic Development: Building a domestic defense industry can stimulate economic growth by creating jobs, fostering technological innovation, and generating export opportunities.
-
Strategic Autonomy: Indigenization allows a country to have greater control over its defense procurement and technology, reducing vulnerabilities to disruptions in the global supply chain or changes in international relations.
-
Cost Efficiency: While there may be initial costs associated with developing indigenous capabilities, in the long run, it can be more cost-effective than relying solely on imports, as it reduces reliance on expensive foreign equipment and technologies.
Countries pursue indigenization strategies to varying degrees based on their security needs, technological capabilities, and economic resources. It often requires significant investments in research and development, infrastructure, and human capital, as well as long-term planning and sustained commitment from government and industry stakeholders
4. Key Takeaways from SIPRI report
- The latest data showed that the United States, China and Russia remained the top three military spenders globally followed by India and Saudi Arabia.
- According to the report, Indian spending was up by 4.2 per cent from 2022 and by 44 per cent from 2014.
- The capital outlays to fund military procurement remained relatively stable at around 22 per cent of the budget in 2023, of which 75 per cent went towards equipment produced domestically.
- As per the report the five biggest spenders in 2023 –the United States, China, Russia, India and Saudi Arabia—together accounted for 61 per cent of world military spending. The US spending was $916 billion and the Chinese spending was an estimated $296 billion. Russia’s military spending grew by 24 per cent in 2023 to an estimated $109 billion.
- As per the report, Ukraine became the eighth largest military spender in 2023, increasing its spending by 51%
- India remains the world's foremost importer of arms, representing 9.8% of global arms imports from 2019 to 2023. This marks a 4.7% increase compared to the period from 2014 to 2018, attributed in part to urgent procurements made in response to tensions with China.
- Russia, France, Israel, the United States, and the United Kingdom are India's primary arms suppliers. During 2019-2023, Russia accounted for 36% of India's defense imports, followed by France at 33%, the United States at 13%, and Israel at 9%.
- Nevertheless, India aims to diminish its reliance on Russian weaponry and is unlikely to pursue further acquisitions from Russia. The government is actively promoting the indigenization of military equipment.
- In 2022, it annulled the import of various significant defense platforms and gear, including Coast Guard helicopters, all-terrain vehicles (ATVs), and short-range missiles. Furthermore, the defense ministry has outlined plans to progressively halt the import of specific items from December 2023 to December 2028
|
Which countries are the top arms suppliers to India?
|
|
What is the new FDI policy in the defense sector?
Foreign Direct Investment (FDI) limit in defence sector was enhanced in 2020 up to 74% through the Automatic Route for companies seeking new defence industrial license, and up to 100% through the Government Route wherever it is likely to result in access to modern technology
|
The Innovations for Defence Excellence (iDEX) initiative is a flagship program launched by the Government of India to foster innovation and technology development in the defense sector. The primary objective of iDEX is to create an ecosystem that promotes innovation, encourages startups, and facilitates collaboration between the Indian defense industry, academia, and startups to address defense-related challenges.
Key features of the iDEX initiative include:
- iDEX organizes open innovation challenges where defense problems are shared with the public, including startups, academia, and individual innovators. Participants are invited to propose innovative solutions to these challenges
- Selected startups and innovators receive funding, mentorship, and other forms of support to develop and commercialize their innovative solutions for defense applications.
- iDEX provides platforms for collaboration and networking between stakeholders in the defense innovation ecosystem, including defense organizations, startups, research institutions, and industry players
- The initiative supports product development and prototyping of innovative defense technologies, helping to bridge the gap between research and commercialization.
- iDEX facilitates market access for innovative defense products and technologies developed by startups and other participants, connecting them with potential buyers within the defense establishment
The Government of India has introduced several initiatives to promote the indigenization of technology in the defense sector.
Some of the key initiatives include:
-
Make in India: Make in India is a flagship initiative aimed at promoting domestic manufacturing across various sectors, including defense. The initiative encourages domestic production, collaboration, and investment in the defense industry to reduce dependence on imports and enhance self-reliance.
-
Innovations for Defence Excellence (iDEX): As mentioned earlier, iDEX is an initiative focused on fostering innovation and technology development in the defense sector. It encourages collaboration between the defense industry, startups, academia, and other stakeholders to address defense challenges through innovative solutions.
-
Defence Procurement Procedure (DPP): The Defence Procurement Procedure outlines the guidelines and procedures for defense procurement in India. Recent iterations of the DPP have emphasized the importance of promoting indigenous manufacturing and technology development, including provisions for preference to domestically designed, developed, and manufactured products.
-
Technology Development Fund (TDF): The Technology Development Fund is aimed at supporting research and development projects in defense technology by providing financial assistance to public and private sector entities, including industry, academia, and research institutions.
-
Defence Research and Development Organisation (DRDO): The DRDO is India's primary agency for defense research and development. It plays a crucial role in indigenous technology development, designing and developing a wide range of defense systems and technologies for the Indian Armed Forces.
|
For Prelims: Current events of national and international importance
For Mains: GS-II, GS-III: GS-II, GS-III: Government policies and interventions for development in various sectors, indigenization of technology
|
|
Previous Year Questions
1.Which one of the following is the best description of ‘INS Astradharini’, that was in the news recently? (UPSC CSE 2016) (a) Amphibious warfare ship (b) Nuclear-powered submarine (c) Torpedo launch and recovery vessel (d) Nuclear-powered aircraft car Answer (c)
INS Astradharini is a Torpedo Launch and Recovery Vessel (TLRV). It is a specialized naval vessel designed for testing and evaluation of torpedoes. TLRVs are equipped with facilities for launching, recovering, and handling torpedoes during testing and training exercises. They play a crucial role in the development and validation of torpedo systems for naval warfare
|
INDIA AI MISSION
- The IndiaAI portal was originally established in 2023 as a collaborative effort between the Ministry of Electronics and Information Technology and Nasscom, an Indian technology industry association.
- Over time, it transitioned into a fully government-led initiative, officially announced last March with a budget allocation of ₹10,371.92 crore. The Union Cabinet approved this mission against the backdrop of the rapid expansion of generative AI models like ChatGPT and the growing global interest in AI development.
- The mission’s core objectives are centered around “Making AI in India and Making AI Work for India.”
- While the initiative focuses on various measures to support private enterprises and academic institutions in AI research and development, one of the most significant aspects in recent weeks has been the establishment of a Common Compute facility. This facility aims to provide GPU access to startups that might not have the financial capacity to purchase them in large quantities.
- GPUs, commonly referred to as graphics cards, are crucial for rendering images and graphics on computers and mobile devices. However, AI researchers have long relied on GPUs to execute highly complex calculations involving vast amounts of data.
- Generative AI models, which require substantial computing power for training and operation, have become a major driver of GPU demand. This shift has allowed companies like Nvidia to expand beyond gaming and establish themselves as key players in global AI infrastructure.
- However, GPUs come at a high cost, with Nvidia's Blackwell model reportedly being unavailable until October.
- To address this challenge, the IndiaAI Mission has begun empaneling data centers across the country that house GPUs, ensuring startups and researchers have access to necessary computing resources.
- The mission will oversee the allocation of these resources, determining the level and duration of access for each entity. So far, 14,000 GPUs have been acquired and deployed in empaneled data centers, with IT Minister Ashwini Vaishnaw confirming plans for further acquisitions on a quarterly basis
- AI Kosha serves as the implementation of another key component of the mission: the IndiaAI Datasets Platform. A significant challenge in developing AI models from the ground up—or even modifying existing ones for India—is that most models are predominantly trained on Western data, which tends to be heavily biased toward English and developed nations. AI Kosha aims to address this issue by making locally relevant data more accessible.
- The datasets uploaded so far—including translation models for various Indian language pairs—seek to reduce this bias by providing Indian researchers and AI developers with broader access to localized content.
- While open-source AI models theoretically allow Indian companies to create advanced generative AI tools like chatbots, policymakers and developers argue that incorporating local data is essential.
- This ensures that AI applications developed in India are not only relevant but also more effective than those offered by global firms such as OpenAI and Google
- The mission is built on seven key pillars. While the Common Compute facility and AI Kosha have drawn significant attention—particularly in light of developments like DeepSeek, the Chinese AI model trained at a much lower cost than its U.S. counterparts—there are several other critical components that policymakers are prioritizing.
- One such component is the AI Safety Institute of India, which has yet to be officially launched.
- Similar institutions are being established or accredited globally to create safeguards against unintended consequences of AI applications and to assess the risks associated with AI’s rapid expansion across industries and government sectors.
- These efforts range from preventing AI systems from generating harmful information—such as instructions for making explosives—to ensuring that specialized AI tools, particularly in fields like biomedical research, produce reliable and explainable results.
- Other pillars of the mission include the IndiaAI Innovation Centre, which focuses on developing "domain-specific foundation models"; an application development program designed to support AI use cases with commercial or practical potential; the Futureskills initiative, which aims to set up AI labs in smaller cities; and funding opportunities for startups working in the AI space
|
For Prelims: Artificial Intelligence, Chat GPT, European law on artificial intelligence (AI), large language models (LLMs) like Generative Pretrained Transformer3 (GPT3) and 4 , EU’s 2018 General Data Protection Regulation (GDPR), AI Bill of Rights (AIBoR), and Office of Science and Technology Policy (OSTP).
For Mains: 1. What is the EU AI Act? Discuss Why should we regulate Artificial Intelligence?
|
Previous year Question1. With the present state of development, Artificial Intelligence can effectively do which of the following? ( UPSC 2020)1. Bring down electricity consumption in industrial units
2. Create meaningful short stories and songs
3. Disease diagnosis
4. Text-to-Speech Conversion
5. Wireless transmission of electrical energy
Select the correct answer using the code given below:
A. 1, 2, 3, and 5 only
B. 1, 3, and 4 only
C. 2, 4, and 5 only
D. 1, 2, 3, 4 and 5
Answer: B
|
BIOE3 POLICY
- Biotechnology, which involves manipulating living organisms and biological processes to create specific products or applications, is an expansive and diverse field. It encompasses areas such as genomics, genetic modification, synthetic biology, bioinformatics, and gene therapy.
- Advancements in these fields have led to breakthroughs like treatments for genetic diseases or the development of crop varieties with enhanced traits. Historically, biotechnology solutions have been primarily applied in healthcare and agriculture.
- However, recent progress in gene-editing techniques, protein production, and the cultivation of enzymes using genetically altered microorganisms, alongside enhanced data processing and artificial intelligence, has broadened the potential of biotechnology.
- Traditional goods like synthetic fabrics, plastics, meat, milk, and fuel now have eco-friendly alternatives created through modern biological methods. For example, biological processes can replace chemical industrial methods, offering cleaner and more sustainable solutions.
- Precision fermentation, for instance, allows for the production of animal-free milk, which mirrors the taste, texture, and nutrition of natural milk, but with a lower carbon footprint, enhanced accessibility, and higher nutritional value.
- Environmentally harmful conventional plastics can be replaced by biodegradable bioplastics like polylactic acid, which is produced from renewable materials such as corn starch or sugarcane, rather than petroleum-based hydrocarbons.
- Additionally, certain microorganisms like bacteria and algae can be utilized for atmospheric carbon capture, a critical bioprocess in mitigating climate change. Traditional carbon capture and storage methods, which rely on chemical processes, have faced challenges such as high costs and the need to store captured CO2 underground indefinitely. Biological processes, however, allow microorganisms to convert CO2 into useful byproducts, including biofuels, eliminating the need for storage.
- In synthetic biology, entirely new organisms can be engineered to perform specific tasks, such as producing proteins or enzymes. Organs for transplantation can also be grown in laboratories through organogenesis, potentially reducing the reliance on human donors.
- The potential applications of biotechnology are just beginning to emerge. While some products, like animal-free milk, are already available in select markets, many other technologies are still in the development stage, facing challenges related to scalability, cost, or regulatory approval
- In the coming years, these emerging technologies are projected to reshape the economy and existing industrial practices.
- Biomanufacturing, which involves using biological organisms or processes for industrial production, is expected to generate an economic impact of $2-4 trillion within the next decade, according to government projections. This is just one aspect of the broader shift towards integrating biology into economic activities.
- India’s BioE3 policy aims to prepare the country for this future. Although it may not yield immediate economic benefits, the policy focuses on building expertise, promoting research, training young talent, and participating in technology development, positioning India to take advantage of these advancements when they mature.
- This policy aligns with other government initiatives, such as the Artificial Intelligence Mission, Quantum Mission, and Green Hydrogen Mission, which aim to equip India with cutting-edge technologies that are expected to become essential to the global economy and address key challenges like climate change and energy security.
- The BioE3 policy proposes establishing several biomanufacturing hubs across India. These hubs will provide a space for industry partners and start-ups to create specialized chemicals, smart proteins, enzymes, functional foods, and other bio-based products and services.
- The hubs will concentrate on six areas: bio-based chemicals and enzymes, functional foods and smart proteins, precision biotherapeutics, climate-resilient agriculture, carbon capture and utilization, and advanced marine and space research.
- The latter focuses on developing life support systems for astronauts that can recycle waste, produce oxygen, and grow food using specialized plants or microorganisms like algae in space environments.
- Additionally, research on marine ecosystems could lead to the production of novel compounds and enzymes by marine organisms, with potential applications in sectors such as pharmaceuticals and cosmetics.
- The BioE3 policy is spearheaded by the Department of Biotechnology, but its scope is so broad that it will require the collaboration of at least 15 other government departments for successful implementation
The BioE3 policy refers to India's strategic initiative aimed at fostering a bio-economy by leveraging biotechnology to address various industrial, environmental, and societal challenges. This policy is designed to prepare India for a future where biological processes and technologies play a central role in economic development. The key focus of the BioE3 policy includes the promotion of biomanufacturing, where biological organisms or processes are used for industrial production, and creating a framework to harness the potential of biotechnology in sectors such as healthcare, agriculture, and environmental sustainability.
Objectives of BioE3 Policy:
- Establishing biomanufacturing hubs where industries and start-ups can develop bio-based products like specialized chemicals, enzymes, smart proteins, functional foods, etc.
-
Developing competencies by promoting research, education, and talent development in biotechnology fields.
- Supporting the development of advanced biotechnologies, including gene editing, bioinformatics, and precision biotherapeutics, to stay at the forefront of global innovation.
- Utilizing biotechnology to address challenges like climate change, carbon capture, and creating eco-friendly alternatives to traditional industrial processes.
- Ensuring that multiple government departments work together to implement the policy effectively, reflecting its broad impact on various sectors
|
For Prelims: Global Biofuel Alliance (GBA), G-20 summit, E10 (10% ethanol) or E85 (85% ethanol), Electric vehicle (EV), and International Energy Agency (IEA). For Mains: 1. Discuss the role of biofuels in the global transition to sustainable energy sources, considering their environmental impact, economic implications, and potential for reducing greenhouse gas emissions. (250 words). |
|
Previous year Question 1. According to India's National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (UPSC 2020) 1. Cassava 2. Damaged wheat grains 3. Groundnut seeds 4. Horse gram 5. Rotten potatoes 6. Sugar beet Select the correct answer using the code given below: A. 1, 2, 5 and 6 only B. 1, 3, 4 and 6 only C. 2, 3, 4 and 5 only D. 1, 2, 3, 4, 5 and 6 Answer: A 2. It is possible to produce algae-based biofuels, but what is/are the likely limitation(s) of developing countries in promoting this industry? (UPSC 2017) 1. Production of algae-based biofuels is possible in seas only and not on continents. 2. Setting up and engineering the algae-based biofuels production requires a high level of expertise/technology until the construction is completed. 3. Economically viable production necessitates the setting up of large-scale facilities which may raise ecological and social concerns. Select the correct answer using the code given below: A. 1 and 2 only B. 2 and 3 only C. 3 only D. 1, 2 and 3 Answer: B 3. With reference to the Neem tree, consider the following statements: (UPSC 2014) 1. Neem oil can be used as a pesticide to control the proliferation of some species of insects and mites. 2. Neem seeds are used in the manufacture of biofuels and hospital detergents. 3. Neem oil has applications in the pharmaceutical industry. Which of the statements given above is/are correct? A. 1 and 2 only B. 3 only C. 1 and 3 only D. 1, 2 and 3 Answer: C |
Source: Indianexpress
FREE TRADE AGREEMENT
1. Context
2. About the Free Trade Agreement
- A Free Trade Agreement (FTA) is an agreement between two or more countries to reduce or eliminate barriers to trade, such as tariffs, quotas, and subsidies.
- FTAs can also include provisions on other issues, such as investment, intellectual property, and labour standards.
- The goal of an FTA is to promote trade and economic growth between the signatory countries.
- By reducing or eliminating trade barriers, FTAs can make it easier for businesses to export their goods and services to other countries, which can lead to increased production, employment, and innovation.
3. Types of Free Trade Agreement
- Bilateral Free Trade Agreement (BFTA) involves two countries, aiming to promote trade and eliminate tariffs on goods and services between them. It establishes a direct trade relationship, allowing for a more focused and tailored agreement between the two nations.
- Multilateral Free Trade Agreement (MFTA) Involving three or more countries, an MFTA seeks to create a comprehensive trade bloc, promoting economic integration on a larger scale. It requires coordination among multiple parties, addressing diverse economic interests and fostering a broader regional economic landscape.
- Regional Free Trade Agreement (RFTA) involves countries within a specific geographic region, aiming to enhance economic cooperation and integration within that particular area. It focuses on addressing regional economic challenges and fostering collaboration among neighbouring nations.
- Preferential Trade Agreement (PTA) involves a reciprocal reduction of tariffs and trade barriers between participating countries, granting preferential treatment to each other's goods and services. It allows countries to enjoy trading advantages with specific partners while maintaining autonomy in their trade policies with non-participating nations.
- Comprehensive Economic Partnership Agreement (CEPA) is a broad and advanced form of FTA that goes beyond traditional trade barriers, encompassing various economic aspects such as investment, intellectual property, and services. It aims for a more comprehensive economic partnership, encouraging deeper integration and collaboration between participating countries.
- Customs Union While not strictly an FTA, a Customs Union involves the elimination of tariffs among member countries and the establishment of a common external tariff against non-member nations. It goes beyond standard FTAs by harmonizing external trade policies, creating a unified approach to trade with the rest of the world.
- Free Trade Area (FTA) with Trade in Goods (TIG) and Trade in Services (TIS): Some FTAs specifically emphasize either trade in goods or trade in services, tailoring the agreement to the specific economic strengths and priorities of the participating countries. This approach allows nations to focus on areas where they have a comparative advantage, fostering specialization and efficiency.
4. India's Free Trade Agreements
India is a member of several free trade agreements (FTAs) and is currently negotiating others. India's FTAs have helped to reduce trade barriers and promote trade and economic growth. They have also helped to attract foreign investment and create jobs.
- The South Asian Free Trade Agreement (SAFTA) was signed in 1995 by the seven countries of the South Asian Association for Regional Cooperation (SAARC). SAFTA aims to reduce or eliminate tariffs on trade between the member countries.
- The India-Bangladesh FTA was signed in 2010 and came into force in 2011. It is a comprehensive FTA that covers goods, services, and investments.
- The India-Sri Lanka FTA was signed in 1999 and came into force in 2000. It is a comprehensive FTA that covers goods, services, and investments.
- The India-ASEAN Free Trade Agreement was signed in 2002 and came into force in 2010. It is a comprehensive FTA that covers goods, services, and investments.
- The India-Korea Comprehensive Economic Partnership Agreement (CEPA) was signed in 2010 and came into force in 2011. It is a comprehensive FTA that covers goods, services, and investments.
- The India-Japan Comprehensive Economic Partnership Agreement(CEPA) was signed in 2022 and came into effect in 2023. It is a comprehensive FTA that covers goods, services, and investments.
- The India-UAE Comprehensive Partnership Agreement (CEPA) was signed in 2022 and came into effect in 2022. It is a comprehensive FTA that covers goods, services, and investments.
- The India-Australia Economic Cooperation and Trade Agreement (ECTA) was signed in 2022 and came into effect in 2022. It is a comprehensive FTA that covers goods, services, and investments.
- The India-Malaysia Comprehensive Economic Cooperation Agreement (CECA) was signed in 2010 and aims to enhance economic ties by addressing trade in goods and services, as well as investment and other areas of economic cooperation.
- The India-Thailand Free Trade Agreement was signed in 2003 and focuses on reducing tariffs and promoting trade in goods and services between India and Thailand.
- The India-Singapore Comprehensive Economic Cooperation Agreement (CECA) has been operational since 2005, this agreement covers trade in goods and services, as well as investment and intellectual property.
- The India-Nepal Trade Treaty While not a comprehensive FTA, India and Nepal have a trade treaty that facilitates the exchange of goods between the two countries.
- The India-Chile Preferential Trade Agreement was signed in 2006 and aims to enhance economic cooperation and reduce tariffs on certain products traded between India and Chile.
5. India - UK Free Trade Agreement
5.1. Background
- Both countries have agreed to avoid sensitive issues in the negotiations.
- The interim (early harvest agreement) aims to achieve up to 65 per cent coverage for goods and up to 40 per cent coverage for services.
- By the time the final agreement is inked, the coverage for goods is expected to go up to "90 plus a percentage" of goods.
- India is also negotiating a similar early harvest agreement with Australia, which is supposed to set the stage for a long-pending Comprehensive Economic Cooperation Agreement that both countries have been pursuing for nearly a decade.
- While the commencement of negotiations does mark a step forward in the otherwise rigid stance adopted and when it comes to trade liberalisation, experts point to impediments and the potential for legal challenges going ahead.
5.2. GATT (General Agreement on Trade and Tariffs)
- The exception to the rule is full-scale FTAs, subject to some conditions.
- One rider, incorporated in Article XXIV.8 (b) of GATT, stipulates that a deal should aim to eliminate customs duties and other trade barriers on "Substantially all the trade" between the WTO member countries that are signatories to an FTA.
- For this Agreement, a free-trade area shall be understood to mean a group of two or more customs territories in which the duties and other restrictive regulations of commerce are eliminated on substantially all the trade between the constituent territories in products originating in such territories.
- It is often beneficial to negotiate the entire deal together, as an early harvest deal may reduce the incentive for one side to work towards a full FTA.
- These agreements are not just about goods and services but also issues like investment.
- If you are trying to weigh the costs and benefits, it is always better to have the larger picture in front of you.
- In the case of the early harvest agreement inked with Thailand, automobile industry associations had complained that relaxations extended to Bangkok in the early harvest had reduced the incentive for Thailand to work towards a full FTA.
- Early harvest agreements may serve the function of keeping trading partners interested as they promise some benefits without long delays, as India becomes known for long-drawn negotiations for FTAs.
- Government emphasis on interim agreements may be tactical so that a deal may be achieved with minimum commitments and would allow for contentious issues to be resolved later.
|
For Prelims: Free Trade Agreement, India-U.K, Bilateral Free Trade Agreement, G-20 Summit, Agenda 2030, Covid-19 Pandemic, SAARC, General Agreement on Trade and Tariffs, Comprehensive Economic Partnership Agreement, Multilateral Free Trade Agreement, Regional Free Trade Agreement, Preferential Trade Agreement, Customs Union,
For Mains:
1. Evaluate the potential impact of the India-UK FTA on the Indian economy, considering both positive and negative aspects (250 Words)
2. Critically evaluate the significance of Free Trade Agreements (FTAs) in promoting trade and economic growth, considering their potential benefits and drawbacks. (250 Words)
|
|
Previous Year Questions
1. Consider the following countries:
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the free-trade partners' of ASEAN? (UPSC 2018)
A. 1, 2, 4 and 5 B. 3, 4, 5 and 6 C. 1, 3, 4 and 5 D. 2, 3, 4 and 6
Answer: C
2. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (UPSC 2018) (a) Industrial output fails to keep pace with agricultural output. Answer: C 3. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following: (2010)
Which of the above are the objectives of this Act? (a) 1 and 2 only (b) 3 only (c) 2 and 3 only (d) 1, 2 and 3 Answer: A 4. A “closed economy” is an economy in which (UPSC 2011) (a) the money supply is fully controlled Answer: D 5. With reference to the “G20 Common Framework”, consider the following statements: (UPSC 2022)
1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. 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
|
OBESITY
Causes of Obesity:
- Unhealthy Diet – High-calorie, processed foods with excess sugar and fats.
- Lack of Physical Activity – Sedentary lifestyle with minimal exercise.
- Genetics – Family history and inherited traits can influence body weight.
- Medical Conditions & Medications – Hormonal imbalances (e.g., hypothyroidism, PCOS) and certain drugs (e.g., steroids, antidepressants) may contribute.
- Psychological Factors – Stress, emotional eating, and mental health disorders.
- Sleep Deprivation – Poor sleep patterns can disrupt metabolism and increase appetite
-
By 2050, more than half of the global adult population and a third of children and adolescents are expected to be overweight or obese. The report indicates that, compared to 1990, obesity rates worldwide have surged by 155.1% in males and 104.9% in females.
-
A particularly concerning trend is the sharp rise in obesity among older adolescents, specifically those aged 15 to 24. Among young men, the number of overweight or obese individuals increased from 0.4 crore in 1990 to 1.68 crore in 2021, with projections reaching 2.27 crore by 2050. Similarly, for young women, this figure rose from 0.33 crore in 1990 to 1.3 crore in 2021, and is expected to reach 1.69 crore by 2050.
-
The report estimates that by 2050, India will have 21.8 crore overweight or obese men and 23.1 crore women, bringing the total to 44.9 crore—nearly one-third of the country’s projected population.
-
The prevalence of overweight and obesity among boys in India increased from 0.46 crore in 1990 to 1.3 crore in 2021, with a projected rise to 1.6 crore by 2050. For girls, this number grew from 0.45 crore in 1990 to 1.24 crore in 2021, and is expected to reach 1.44 crore by 2050.
-
These findings are particularly alarming given India's already high burden of non-communicable diseases (NCDs) such as heart disease, strokes, and diabetes. Obesity significantly contributes to these conditions and is a key factor in the early onset of Type 2 diabetes, even among teenagers
|
Indian Scenario
As per the National Family Health Survey (NFHS)-5 (2019-21), 24% of women and 23% of men in India are classified as overweight or obese. Additionally, 56.7% of women and 47.7% of men have a high-risk waist-to-hip ratio, which is a key indicator of obesity-related health risks. Among individuals aged 15-49 years, obesity affects 6.4% of women and 4.0% of men. The prevalence of overweight children under the age of five (based on weight-for-height measurements) has also risen at the national level, increasing from 2.1% in NFHS-4 (2015-16) to 3.4% in NFHS-5 (2019-21) |
-
A major factor contributing to the rising obesity epidemic is the increased consumption of processed foods that are high in salt, sugar, and fat. According to the study, between 2009 and 2019, countries like Cameroon, India, and Vietnam recorded the highest annual growth in per capita sales of ultra-processed food and beverages.
-
There has been a noticeable shift away from traditional diets and active lifestyles. Traditional diets were generally low in animal products, salt, refined oils, sugars, and flours, whereas modern dietary patterns are high in energy but low in essential nutrients. These new eating habits consist largely of refined carbohydrates, high-fat foods, processed meats, and packaged foods.
-
Urbanization has further contributed to decreasing physical activity, with longer commutes, desk jobs, and sedentary lifestyles becoming more common. This shift has also led to increased work-related stress, poor sleep, and mental health issues, all of which are linked to obesity.
-
The study also highlighted the rising obesity rates among women. Several factors contribute to this trend, including traditional societal roles, lack of time for physical activity, limited access to nutritious food, and dietary practices that prioritize the needs of other family members over their own. Additionally, many women have restricted access to healthcare and obesity awareness programs, making it even more challenging to address the issue effectively
-
The World Health Organization (WHO) defines obesity as an abnormal or excessive accumulation of body fat that increases health risks. According to Body Mass Index (BMI) classifications, individuals with a BMI below 18.5 are considered underweight, those between 18.5 and 24.9 fall within the normal range, individuals with a BMI of 25 to 29.9 are classified as overweight, and those with a BMI above 30 are categorized as obese.
-
However, relying solely on BMI to diagnose obesity can lead to both overestimation and underestimation. Some individuals with excess body fat may not have a BMI exceeding 30 but still face obesity-related health issues.
-
Conversely, people with high muscle mass may have a BMI over 30 while being physically fit and not requiring medical intervention. In India, many individuals with BMI below 30 still carry abdominal fat, which can negatively impact organ function.
-
A recent Lancet Diabetes & Endocrinology Commission report introduced a broader definition of obesity, incorporating factors such as height, weight, waist circumference, muscle mass, and organ function rather than relying solely on BMI.
-
The new definition eliminates the overweight category and introduces "preclinical obesity", which is described as a physical condition rather than a disease. The Commission explains that, in some individuals, preclinical obesity may progress to clinical obesity, whereas in others, it may not directly impair organ function.
-
In India, obesity is categorized differently, using the terms "stage 1" and "stage 2" obesity instead of preclinical and clinical obesity.
-
Under Indian guidelines, stage 1 obesity is diagnosed when an individual has a BMI over 23—with waist circumference and waist-to-height ratio being optional criteria—but does not exhibit functional limitations or obesity-related chronic conditions.
-
Stage 2 obesity, according to Indian criteria, is diagnosed when a person has a BMI above 23, meets at least one additional physical marker of obesity (such as waist circumference or waist-to-height ratio), and experiences obesity-related complications or limitations in daily activities
|
For Prelims: Body Mass Index (BMI), Obesity
For Mains: GS III - Science & Technology
|
PREVENTION OF MONEY LAUNDERING ACT (PMLA)
1. Context
2. Why is the PMLA verdict under review?
Specific Concerns
- The PMLA's retrospective application, allowing for the prosecution of offences committed before the law's enactment, has been challenged as violative of the fundamental right against ex post facto laws.
- The PMLA places the burden of proof on the accused to establish innocence, a departure from the general principle of criminal law that presumes innocence until proven guilty.
- Critics argue that the PMLA's provisions are overly broad and draconian, giving the ED excessive powers to arrest, detain, and seize assets without adequate judicial oversight.
- The PMLA's lack of adequate safeguards against arbitrary actions and misuse of power has raised concerns about the potential for abuse of authority by the ED.
- The PMLA's provisions have been criticized for potentially infringing upon fundamental rights such as the right to personal liberty, the right to property, and the right against self-incrimination.
3. Money laundering
- Money laundering is the illegal process of making large amounts of money.
- This money is generated by criminal activity but may appear to come from a legitimate source.
- Criminal activities include drug trafficking, terrorist funding, illegal arms sales, smuggling, prostitution rings, insider trading, bribery and computer fraud schemes that produce large profits.
3.1. Different stages in money laundering
- Placement: The crime money is injected into the formal financial system.
- Layering: Money injected into the system is layered and spread over various transactions and book-keeping tricks to hide the source of origin.
- Integration: Laundered money is withdrawn from the legitimate account to be used for criminal purposes. Now, Money enters the financial system in such a way that the original association with the crime is disassociated. The money now can be used by the offender as legitimate money.
3.2. Impact of Money Laundering on Economic Development
Money laundering can have a significant impact on economic development by:
- When money laundering occurs, it can undermine public confidence in banks and other financial institutions. This can lead to increased risk aversion and a decline in investment, which can hamper economic growth.
- Money laundering can distort economic activity by directing funds away from legitimate businesses and into criminal enterprises. This can lead to inefficient allocation of resources and slower economic growth.
- Money laundering can facilitate corruption by providing a means to conceal the proceeds of corrupt activities. This can weaken governance and undermine the rule of law, further hindering economic development.
- Money laundering can also lead to a loss of tax revenue, as criminals seek to evade taxes on their illicit gains. This can deprive governments of much-needed funds for essential services, such as education and healthcare.
- Money laundering is often used to finance organized crime groups, which can lead to an increase in violence and instability.
- Money laundering can also be used to finance terrorist activities, posing a serious threat to international security.
- Money laundering can also have a direct impact on individuals and businesses, who may lose money or be victims of fraud as a result of this crime.
4. Prevention of Money-Laundering Act, 2002 (PMLA)
The Prevention of Money-Laundering Act, 2002 (PMLA) is a comprehensive legislation enacted by the Indian Parliament to combat money laundering and other financial crimes. It aims to prevent the use of proceeds of crime, particularly those derived from drug trafficking, organized crime and corruption, from being laundered and utilized to finance further criminal activities or to gain legitimacy.
4.1. Key Features of the PMLA
- The PMLA prohibits the process of money laundering, defined as the act of concealing or disguising the proceeds of crime.
- The PMLA empowers the Enforcement Directorate (ED), the designated agency for investigating money laundering cases, to attach and seize property derived from or involved in money laundering.
- The PMLA provides for the confiscation of property that is involved in money laundering, even if it is not in the possession of the accused person.
- The PMLA grants the ED extensive powers to conduct searches, make arrests, and detain individuals suspected of money laundering.
- The PMLA facilitates international cooperation in combating money laundering through mutual legal assistance treaties and other mechanisms.
4.2. Significance of the PMLA
The PMLA has played a crucial role in strengthening India's anti-money laundering framework and enhancing its global standing in combating financial crimes. It has enabled the investigation and prosecution of numerous money laundering cases, leading to the recovery of substantial illicit funds.
4.3. Challenges in Implementing the PMLA
Despite its significance, the implementation of the PMLA has faced certain challenges, including:
- The PMLA and other laws, such as the Narcotics Drugs and Psychotropic Substances Act, have overlapping jurisdictions, which can lead to confusion and delays in investigations.
- There have been concerns about the lack of adequate safeguards against arbitrary actions and misuse of power under the PMLA.
- The ED faces resource constraints in terms of manpower and infrastructure, which can hamper its ability to effectively investigate and prosecute money laundering cases.
- The Directorate of Enforcement (ED) is an agency in India that primarily deals with the enforcement of economic laws and regulations to combat money laundering, foreign exchange violations, and financial fraud.
- The ED is part of the Department of Revenue under the Ministry of Finance, Government of India.
- The Directorate of Enforcement was established on 1st May 1956, as the "Enforcement Unit" within the Department of Economic Affairs.
- Its primary focus was on preventing and detecting violations of the Foreign Exchange Regulation Act (FERA) of 1947.
- Over the years, the agency's role expanded, and in 1999, the Enforcement Directorate was established as a separate entity under the Ministry of Finance.
- The enactment of the Prevention of Money Laundering Act (PMLA) in 2002 further broadened its jurisdiction, giving it the power to investigate cases related to money laundering.
- Since its establishment, the ED has played a crucial role in combating economic offences and ensuring compliance with economic laws in India.
- It has been involved in several high-profile cases, including those related to financial scams, money laundering by influential individuals, and cross-border financial crimes.
- The ED collaborates with various domestic and international agencies, including financial intelligence units, law enforcement agencies, and Interpol, to gather information, share intelligence, and effectively coordinate efforts to combat economic offences.
5.1. Functions and Roles of ED
- Enforcing Economic Laws: The primary function of the ED is to enforce two key economic laws in India: the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA). It ensures compliance with these laws and investigates money laundering, foreign exchange violations, and economic fraud cases.
- Money Laundering Investigations: The ED investigates cases involving money laundering, which is the process of concealing the origins of illegally obtained money to make it appear legitimate. It identifies and seizes properties and assets derived from illicit activities and prevents their further use.
- Foreign Exchange Violations: The ED is responsible for investigating cases related to violations of foreign exchange laws and regulations. It monitors and controls foreign exchange transactions to maintain the stability of the Indian rupee and prevent illegal activities such as smuggling and illegal money transfers.
- Financial Frauds: The ED also investigates and takes action against financial frauds, including bank frauds, Ponzi schemes, and other fraudulent activities affecting the Indian financial system. It works closely with other law enforcement agencies, such as the Central Bureau of Investigation (CBI), to tackle complex financial crimes.
|
For Prelims: Prevention of Money Laundering Act, ED, CBI, Foreign Exchange Management Act,
For Mains:
1. Critically evaluate the Prevention of Money Laundering Act, 2002 (PMLA) in its effectiveness in combating money laundering in India. (250 Words)
|
|
Previous Year Questions
1. Which one of the following is not correct in respect of Directorate of Enforcement? (CDS 2021)
A. It is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance.
B. It enforces the Foreign Exchange Management Act, 1999.
C. It enforces the Prevention of Money Laundering Act, 2002.
D. It enforces the Prohibition of Benami Property Transaction Act, 1988.
2. The Prevention of Money Laundering Act, 2002 become effective since which one of the following dates? (UKPSC RO/ARO 2012)
A. July 2002 B. August 2003 C. July 2004 D. July 2005
3. FEMA (Foreign Exchange Management Act) was finally implemented in the year (UPPSC 2013)
A. 1991 B. 1997 C. 2000 D. 2007
4. The Foreign Exchange Regulation Act was replaced by the ______ in India. (SSC Steno 2020)
A. Foreign Exchange Currency Act
B. Foreign Exchange Finances Act
C. Foreign Exchange Funds Act
D. Foreign Exchange Management Act
5. "Central Bureau of Intelligence and Investigation" is listed in the __________ list given in the Seventh Schedule of the Constitution of India. (SSC CGL 2017)
A. Union B. State C. Global D. Concurrent
Answers: 1-D, 2-D, 3-C, 4-D, 5-A
|
