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DAILY CURRENT AFFAIRS, 30 MAY 2025

IMPACT OF THE PANDEMIC ON POVERTY

 

1. Context

C Rangarajan and S. Mahendra Dev writes: Our analysis shows that most of the poor are concentrated around the poverty line — this makes poverty more manageable.

2. Poverty

Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs cant be met.
According to World Bank, Poverty is defined as deprivation in well-being and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity.

3. Types of Poverty

There are two main classifications of poverty
3.1 Absolute poverty: A condition where household income is below a necessary level to maintain basic living standards ( food, shelter, housing). This condition makes it possible to compare different countries and also over time.
3.2 Relative Poverty: It is defined from the social perspective that is the living standard compared to the economic standards of the population living in surroundings. Hence it is a measure of income inequality. Usually, relative poverty is measured as the percentage of the population with income less than some fixed proportion of median income.

4. How India faces this Pandemic Situation

  • The number of people living in extreme poverty rose by seven crore million in 2020, as the global poverty rate rose from 8.4% in 2019 to 9.3% in 2020. This is the first time in two decades that the poverty rate has gone up.
  • The World Bank report relies on the Consumer pyramids household survey (CPHS) by the Center for Monitoring Indian Economy (CIME), in the absence of official poverty data since 2011. By their estimate, 5.6 crore people are likely to have slipped into poverty as India's GDP fell by 7.5% in FY2020-21. The population below poverty lies in India stood at 10% in 2020.
  • The government announced a fiscal stimulus worth 2 lakh crore, or 1% of GDP. The minor increase to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) wage by 20 rupees per day was a long-pending correction and quite inadequate, to say the least. The majority of India's stimulus package took the form of credit lines and refinancing schemes for private enterprises, which are inefficient mechanisms to realize the goal of putting money in the hands of people to boost household-level consumption.
  • The only saving grace was the announcement that 80 crore people in India would get food aid through the Pradhan Mantri Garib Kalyan ANN Yojana (PMGKAY), a scheme that continues mainly because of the undeniable household-level distress.
  • Poverty estimation in India is carried out by the NITI Aayogs task force through the calculation of the poverty line based on the data captured by the National Sample survey office under the Ministry of statistics and program Implementation (MOSPI). Poverty line estimation in India is based on consumption expenditure and not on income levels.

5. Obtuse tax policies

  • India persisted with the reduced corporate tax rate that had been announced in September 2019. The reduction of corporate tax from 30% to 22% cost the exchequer 1.84 lakh crore over the last two fiscal years, according to the parliamentary committee on Estimates.
  • At the same time, corporate profits soared, as reported by the CMIE. Through all of this, and despite the World Inequality Report terming India as a 'poor and very unequal country ', India has refused to reintroduce wealth tax, or indeed, an inheritance tax.
  • India has repeatedly increased the rates on a wide range of products covered by the Goods and Services Tax as well as increased the prices of cooking and transport fuels. While indirect taxes may help prop up public finances, they place a disproportionate burden on the poor.

6. Poverty Alleviations programs in India

6.1 Integrated Rural Development Programme (IRDP)
It was introduced in 1978-79 and universalized from 2nd October 1980, aimed at assisting the rural poor in the form of subsidy and bank credit for productive employment opportunities through successive plan periods.
 
6.2 Jawahar Rozgar Yojana: The JRY was meant to generate meaningful employment opportunities for the unemployed and underemployed in rural areas through the creation of economic infrastructure and community and social assets.
 
6.3 Food for Work Programme: It aims at enhancing food security through wage employment. food grains are supplied to states free of cost, however, the supply of food grains from the Food Corporation of India(FCI) godowns has been slow.
 
6.4 Rural Housing-Indira Awaas Yojana: The Indira Awaas Yojana program aims at proving free housing to Below Poverty Line (BPL) families in rural areas and the main targets would be the households of SAC/STs.
 
6.5 Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005:
The act provides 100 days of assured employment every year to every rural household. One-third of the proposed bond would be reserved for women. The central government will also establish National Employment Guarantee Funds. Similarly, state governments will establish state Employment Guarantee Funds for the implementation of the scheme. Under the program, if an applicant is not employed within 15 days he will be entitled to daily unemployment allowances.

7. Conclusion:

Finally, poverty is a problem that affects the whole nation, not just one person. It should also be dealt with as soon as possible by putting in place appropriate solutions. Furthermore, poverty eradication is now a must for people's society country, and economy's long-term and inclusive development.

For Prelims & Mains

For Prelims: World bank, CPHS, CIME, NITI Aayog, PMGKAY, MGNREGA, IRDP, Jawahar Rozgar Yojna, Food for Work program.Indira Awas Yojna.
For Mains: 1. What are the impacts of poverty on developing countries and suggest the applicable measures to reduce the poverty? (250 Words)
 
 
 
Previous Year Questions
 
1. Which of the following are the Objectives of 'National Nutrition Mission'? (UPSC 2017)
1. To Create Awareness relating to malnutrition among pregnant women and lactating mothers
2. To reduce the incidence of anaemia among young children, adolscent girls, and women
3. To promote the Consumption of millets, coarse cereals, and unpolished rice
4. To promote the consumption of poultry eggs
Select the correct answer using the code given below
A. 1 and 2 Only       B.1, 2 and 3         C. 1, 2 and 4           D. 3 and 4
 
2. In a given year in India, official poverty lines are higher in some States than in others because (UPSC 2019)
A. Poverty rates vary from State to State
B. Price levels vary from State to State
C. Gross State Product varies from State to State
D. Quality of public distribution varies from State to State
 
Answers: 1-A, 2- B
Source: The Hindu
 
 
ELECTRIC BATTERY
 

1. Introduction

A super-fast charging sodium-ion (Na-ion) battery that can charge up to 80 per cent in just six minutes and claims to last over 3,000 charge cycles, nearly comparable with the more ubiquitous lithium-ion batteries.

2. About Battery Development

  • Luigi Galvani's accidental discovery in 1780, where he observed a frog's leg twitching when connected to two different metals, sparked the curiosity of scientists and paved the way for further exploration in the field of electricity.
  • Volta's voltaic pile, developed in 1800, was a significant advancement, demonstrating the ability to generate a continuous flow of electricity using a series of stacked metal plates and a salt solution.
  • John Daniel's improved design, which replaced Volta's pile with copper and zinc electrodes immersed in their respective sulfate solutions, provided a more stable and durable source of electricity.
  • Michael Faraday, in the early 19th century, provided a deeper understanding of these electrochemical cells, elucidating the concepts of anode, cathode, electrolyte, and the role of electron transfer in generating electricity.

3. The Working Principle of an Electric Battery

  • An electric battery, also known as a voltaic or galvanic cell, operates based on the principle of redox reactions.
  • These reactions involve the transfer of electrons between two half-cells, each containing an electrode and an electrolyte.
  • The anode, where oxidation occurs, releases electrons, while the cathode, where reduction occurs, accepts electrons.
  • These electrons flow through an external circuit, generating an electric current.
 

4. Key Concepts of a Battery

  • The cathode is the positively charged electrode, attracting electrons, while the anode is the negatively charged electrode, releasing electrons.
  • Oxidation releases electrons, while reduction consumes electrons.
  • The source voltage, also known as electromotive force, represents the energy imparted to electrons by the half-cells, while the terminal voltage is the driving force pushing electrons from the anode to the cathode.
  • Corrosion poses a significant challenge to battery performance, as it can degrade the electrodes and reduce the battery's lifespan.
  • Corrosion can occur due to factors such as humidity, atmospheric carbon dioxide, and galvanic corrosion, where one electrode dissolves faster than the other.

5. Types of Batteries

  • Lithium-ion batteries have revolutionized the portable electronics industry due to their high energy density, long lifespan, and rechargeable nature.
  • In a lithium-ion polymer cell, lithium metal oxide acts as the cathode, graphite as the anode, and a semisolid polymer gel as the electrolyte.
  • The battery can function in both voltaic (discharge) and electrolytic (charge) phases.
  • Lithium-ion batteries play a crucial role in powering electric vehicles (EVs). For instance, Tesla's Model S cars utilize thousands of lithium-ion cells in their batteries.
  • Fuel cells, such as hydrogen fuel cells, are another promising alternative for electric power in vehicles.
  • These cells generate electricity through the reaction of hydrogen and oxygen, producing only water as a byproduct.

6. Conclusion

Electric batteries have revolutionized our lives, providing a portable and convenient source of electricity for a wide range of applications. The evolution of battery technology, from early voltaic cells to modern lithium-ion batteries and fuel cells, continues to shape our world, powering our devices, propelling our vehicles, and driving innovation in various fields. With ongoing research and development, batteries are poised to play an even more significant role in shaping a sustainable and electrified future.

For Prelims: electric battery, electric vehicles, Alessandro Volta's voltaic pile, Luigi Galvani, anode, cathode, electrolyte, Michael Faraday, Corrosion, Lithium-ion batteries, hydrogen fuel cells
For Mains: 
1. Discuss the significance of lithium-ion batteries in the portable electronics industry and their role in powering electric vehicles. (250 Words)
2. Evaluate the potential of fuel cells, such as hydrogen fuel cells, as an alternative source of electric power for vehicles and their environmental benefits. (250 Words)
 
Previous Year Questions
 
1. Choose the correct option regarding FAME Scheme? (SBI Clerk 2021)
A. To promote the manufacturing of electric and hybrid vehicle technology
B.FAME stands for Faster adoption and Manufacturing of Hybrid and Electric vehicles
C.FAME India is part of the National Electric mobility Mission Plan
D. All of the above
 
Answer -D

2. With reference to ‘fuel cells’ in which hydrogen-rich fuel and oxygen are used to generate electricity, consider the following statements: (UPSC 2015)

1. If pure hydrogen is used as a fuel, the fuel cell emits heat and water as by-products.
2. Fuel cells can be used for powering buildings and not for small devices like laptop computers.
3. Fuel cells produce electricity in the form of Alternating Current (AC).

Which of the statements given above is/are correct?

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

Answer: A

3. With reference to technologies for solar power production, consider the following statements: (UPSC 2014)

1. ‘Photovoltaics’ is a technology that generates electricity by direction conversion of light into electricity, while ‘Solar Thermal’ is a technology that utilizes the Sun’s rays to generate heat which is further used in electricity generation process.
2. Photovoltaics generate Alternating Current (AC), while solar Thermal generates Direct Current (DC).
3. India has manufacturing base for Solar Thermal technology, but not for Photovoltaics.

Which of the statement(s) given above is/are correct?

(a) 1 only            (b) 2 and 3 only             (c) 1, 2 and 3               (d) None

Answer: A

4. Consider the following statements: (UPSC 2020)

1. Coal ash contains arsenic, lead and mercury.
2. Coal-fired power plants release sulphur dioxide and oxides of nitrogen into the environment. 3. High ash content is observed in Indian coal.

Which of the statements given above is/are correct? 

A. 1 only        B. 2 and 3 only           C. 3 only           D. 1, 2 and 3

Answer: D

5. Consider the following: (UPSC 2011)

1. Carbon dioxide
2. Oxides of Nitrogen
3. Oxides of sulphur

Which of the above is/are emission/emissions from coal combustion at thermal power plants?  

A. 1 only         B. 2 and 3 only        C. 1 and 3 only          D. 1, 2 and 3

Answer: D

6. Which of the following Indian States/Union Territories launched Electric Vehicle Policy on 7th August 2020? (UPPSC 2020)
A. Madhya Pradesh
B. Uttar Pradesh
C. Delhi
D. Tamil Nadu
 
Answer: C
 
7. Which type of battery is used in the recently launched world's first fully electric cargo ship by change? (Delhi Police Constable 2017) 
A. Lead Acid
B. Manganese
C. Lithium ion
D. Nickel metal hydride
 
Answer: C
8. 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
 

9. Which one of the following pairs of metals constitutes the lightest metal and the heaviest metal, respectively? (UPSC 2008)

A. Lithium and mercury
B. Lithium and osmium
C. Aluminum and osmium
D. Aluminium and mercury

Answer: B

10.  Recently, there has been a concern over the short supply of a group of elements called ‘rare earth metals’. Why? (2012)

  1. China, which is the largest producer of these elements, has imposed some restrictions on their export.
  2. Other than China, Australia, Canada and Chile, these elements are not found in any country.
  3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements.

Which of the statements given above is/are correct?

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

Answer: C

Mains

1. How is efficient and affordable urban mass transport key to the rapid economic development in India? (UPSC 2019)

Source: The Hindu

 

 

GDP AND GVA

1. Context

Recently, Niti Aayog CEO declared that India had overtaken Japan to become the fourth-largest economy in the world.

2. GDP and GVA

  • GDP and GVA are two main ways to ascertain the country's economic performance. Both are measures of national income.
  • The GDP measures the monetary measure of all "final" goods and services that are bought by the final user produced in a country in a given period.
  • The GDP does this by adding up the total expenditures in the economy; in other words, it looks at who spent how much. That is why GDP captures the total "demand" in the economy.
Broadly speaking there are four key "engines of GDP growth". These are 
  1. All the money Indians spent on their private consumption (that is, Private Final Consumption Expenditure or PFCE).
  2. All the money the government spent on its current consumption, such as salaries (Government, Final Consumption Expenditure or GFCE).
  3. All the money is spent towards investments to boost the economy's productive capacity. This includes business firms investing in factories or the governments building roads and bridges (Gross Fixed Capital Expenditure).
  4. The net effect of exports (What foreigners spent on our goods) and imports (what Indians spent on foreign goods) (Net Exports or NE).
  • The GVA calculates the same national income from the supply side. 
  • It does so by adding up all the value added across different sectors. 
According to the RBI, the GVA of a sector is defined as the value of output minus the value of its intermediary inputs. This "value added" is shared among the primary factors of production, labour and capital.
 
  • By looking at GVA growth one can understand which sector of the economy is robust and which is struggling.

3.  How are the two related?

  • When looking at quarterly it is best to look at GVA data because this is the observed data.
  • The GDP is derived by looking at the GVA data.
The GDP and GVA are related by the following equation; GDP= (GVA)+ (Taxes earned by the Government)- (Subsidies provided by the government).
 
  • As such, if the taxes earned by the government are more than the subsidies it provides, the GDP will be higher than GVA.
  • Typically, that is how it is. For the second quarter too, the GDP (at 38, 16, 578 crores) is much higher than the GVA (Which is at Rs 35, 05, 5999 crores).
  • The GDP data is more useful when looking at annual economic growth and when one wants to compare a country's economic growth with its past or with another country.

4. GVA data

4.1 Manufacturing sector

  • It is a contraction in the manufacturing sector.  In Q2, manufacturing GVA declined by 4.3 per cent. 
  • This is significant because manufacturing carries a huge potential for job creation and can soak up excess labour from the agriculture sector.
  • The contraction has meant that manufacturing GVA has grown by just 6.3 per cent over the three years since the Covid pandemic; look at the change between FY23 and FY20 in the Chart.
  • However, it would be a mistake to believe that only Covid and its after-effects are responsible for the lacklustre manufacturing performance.
  • The fact is, as borne by the data, manufacturing GVA grew by just 10.6 per cent between FY 17 and FY20.
  • For perspective, it is important to remember that between FY14 and FY17, manufacturing GVA grew by 31.3 per cent. 
  • In other words, Indian manufacturing has been struggling to add value for the past six years.
  • This would explain why data from the Centre for Monitoring Indian Economy (CMIE) shows that jobs in the manufacturing sector halved between 2016 and 2020.

4.2 Trade and hotels

  • Almost 15 per cent growth in services such as trade and hotels etc. 
  • This is also a huge sector for job creation. But again, if one looks at the Q2FY23 level and compares it to the pre-Covid level (Q2 of FY20), the growth is barely over 2 per cent.
  • That this sector grew by over 26 per cent in the three years between FY17 and FY20 when India was experiencing a serious economic declaration shows how badly it has been affected by the Covid disruption.

4.3 Mining and quarrying

  • Another sector crucial for job creation, even though it is smaller in terms of overall contribution to India's GVA, is mining and quarrying it, too, has contracted by almost 3 per cent.
  • Looking back over the past six years, it has contracted by 3.5 per cent between FY17 and FY20 and grown by just 2.5 per cent since then.

4.4  Agriculture 

  • One positive story emerging from the GVA pertains to agriculture (along with forestry and fishing), which has done better than expected by growing at 4.6 per cent.
  • Typically, this is a good growth rate for this sector and has happened despite some worries that the sowing of crops did not happen in time.
  • Overall, while the GVA has grown by 5.6 per cent year-on-year, the growth is just 7.6 per cent when compared to the pre-Covid level set in FY20.

5. GDP data 

5.1 Private Consumption Expenditure

  • GDP is the biggest engine of growth in private consumption expenditure.
  • It typically contributes over 55 per cent of India's total GDP.
  • This component is also crucial because if this is depressed, it robs the business of any incentive to make fresh investments; and expenditures towards investments are the second biggest contributors to the GDP, accounting for around 33per cent of the total.
  • Data shows that private consumption has grown by a healthy 9.7 per cent over the past year.
  • However, the growth is relatively modest just 11 per cent when compared over the last three years.
  • That between FY 14 and FY17, this component grew by almost 28 per cent providing some perspective.

5.2 Investment expenditure

  • The investment expenditures have grown by 10.4 per cent over FY21 and by almost 21 per cent between FY20 and FY23.
  • This is the best growth over any three years going back to FY14.
  • This suggests brighter prospects for the economy over the medium term.

5.3  Government final consumption expenditures

  • The biggest surprise though from the GDP is the contraction in government final consumption expenditures.
  • While these types of expenditures account for just about 10-11 per cent of the GDP, they can prop up an economy during tough times when people and businesses hold back spending.
  • Oddly enough, data shows that not only did government consumption expenditure contract by 4.4. per cent in Q2 (Over the Q2 of 2021), but that it is almost 20 per cent below the pre-covid level.

5.4 Net Exports data

  • The last component of the GDP equation is the Net Exports data.
  • Typically, since India imports far more than it exports, the NX value is negative. 
  • In Q2, this negative value swelled by 89 per cent. 
  • Over the past three years, this drag on GDP has also increased in size by almost 150 per cent.

For Prelims and Mains

For Prelims: GDP, GVA, India's economic growth data, Net Exports data, Centre for Monitoring Indian Economy (CMIE), Government final consumption expenditures, Investment expenditure, Private Consumption Expenditure, Mining and quarrying,  Agriculture, Trade and hotels, Manufacturing sector, 
For Mains:
1. What is the difference between GDP and GVA and discuss their contributions to National development? (250 Words)
2. What are the engines of GDP growth? Explain the factors influencing economic growth. (250 Words)
 
 
Previous Year Questions
 
1.With reference to Indian economy, consider the following statements: (UPSC GS1, 2015)
1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
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)
  • Statement 1 is incorrect: The rate of growth of Real GDP in India did not steadily increase in the last decade. While it started high in the late 2000s, it declined in the early 2010s due to the global financial crisis and other factors, before recovering in recent years.
  • Statement 2 is correct: The nominal GDP of India, measured in rupees, has indeed steadily increased over the last decade. This is because even if the rate of growth of real GDP fluctuates, a general inflation in prices leads to an increase in nominal GDP even if the volume of goods and services produced remains the same
2.A decrease in tax to GDP ratio of a country indicates which of the following? (UPSC GS1, 2015)
1. Slowing economic growth rate
2. Less equitable distribution of national income
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
 Answer (a)
  • 1. Slowing economic growth rate: A decrease in the tax-to-GDP ratio can indeed be an indicator of a slowing economic growth rate. When the economy grows slower, people and businesses generate less income, leading to lower tax revenue collected by the government. However, it's important to note that this is not always the case. There could be other factors like changes in tax policy or tax evasion that contribute to a declining tax-to-GDP ratio even with sustained economic growth.
  • 2. Less equitable distribution of national income: While income inequality can impact tax revenue, it's not a direct consequence of a declining tax-to-GDP ratio. For example, even with a more equitable income distribution, the overall economic slowdown could still lead to a drop in tax revenue and hence the ratio
UPSC Mains Question 
1.Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (UPSC GS3, 2020)
2.Explain the difference between computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (UPSC GS3, 2021)
Source: The Indian Express
 
 

GREENHOUSE GASES(GHGs)

 
 
1. Context
 
Reducing Greenhouse Gas (GHG) emissions is crucial to fighting climate change. After carbon dioxide, methane is the most potent GHG responsible for approximately a third of global warming
 
2.What are greenhouse gases?
 

Greenhouse gases are gases that trap heat in the Earth's atmosphere, leading to the greenhouse effect and contributing to global warming. These gases include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), ozone (O3), and fluorinated gases (such as hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride).

These gases allow sunlight to enter the Earth's atmosphere freely. Once absorbed, the Earth's surface emits infrared radiation, but instead of allowing this radiation to escape back into space, greenhouse gases trap and re-radiate some of it back towards the Earth's surface. This process warms the Earth's surface and lower atmosphere, leading to the greenhouse effect.

Human activities, such as the burning of fossil fuels, deforestation, and industrial processes, have significantly increased the concentration of greenhouse gases in the atmosphere, amplifying the greenhouse effect and contributing to global climate change

Here are the major greenhouse gases:

  • Carbon dioxide (CO2): The most abundant greenhouse gas emitted through human activities. It is released when fossil fuels like coal, oil and natural gas are burned
  • Methane (CH4): Methane is emitted from agriculture, waste decomposition, and fossil fuel production. It is a more potent greenhouse gas than CO2, but it breaks down in the atmosphere more quickly
  • Nitrous oxide (N2O): Nitrous oxide is emitted from agriculture, industrial processes, and burning fossil fuels. It is a long-lived greenhouse gas that can stay in the atmosphere for centuries
  • Fluorinated gases These are man-made chemicals used in refrigerants, air conditioners, and fire extinguishers. They are very potent greenhouse gases, but they are emitted in much smaller quantities than other greenhouse gases
  • Water vapor (H2O): The most abundant greenhouse gas in the atmosphere. Water vapor plays an important role in the natural greenhouse effect, but human activities do not significantly affect the amount of water vapor in the atmosphere

3. What is the Greenhouse gas effect?

The greenhouse effect is a natural process that occurs when certain gases in the Earth's atmosphere trap heat from the sun. This process is essential for maintaining the Earth's temperature within a range suitable for life. Without the greenhouse effect, the Earth would be much colder, and life as we know it would not exist.

Here's how the greenhouse effect works:

  • Solar radiation: Sunlight reaches the Earth's atmosphere and passes through it, warming the Earth's surface.

  • Absorption and re-radiation: The Earth's surface absorbs some of this solar energy and then emits it as infrared radiation (heat). Greenhouse gases in the atmosphere, such as carbon dioxide (CO2), methane (CH4), water vapor (H2O), and others, absorb some of this infrared radiation.

  • Re-emission: The absorbed energy is re-radiated in all directions, including back toward the Earth's surface. This trapped heat warms the lower atmosphere and the Earth's surface, similar to how a greenhouse traps heat.

  • Balance: The greenhouse effect helps maintain the Earth's temperature in a range suitable for life. However, human activities, such as burning fossil fuels and deforestation, have significantly increased the concentration of greenhouse gases in the atmosphere, leading to enhanced greenhouse effect or global warming

The Greenhouse Effect | GCSE Chemistry Revision
 
4. What are hydrofluorocarbons?
 
  • Hydrofluorocarbons (HFCs) are a class of synthetic greenhouse gases commonly used in refrigeration, air conditioning, foam blowing agents, aerosol propellants, and other industrial applications. They are composed of hydrogen, fluorine, and carbon atoms.
  • HFCs were developed as alternatives to chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs), which were phased out due to their significant ozone-depleting potential. Unlike CFCs and HCFCs, HFCs do not contain chlorine atoms, so they do not contribute to ozone depletion.
  • However, they are potent greenhouse gases, with high global warming potentials (GWPs), meaning they trap heat in the atmosphere at a much higher rate than carbon dioxide (CO2).
  • Due to their role in contributing to climate change, efforts have been made internationally to regulate and phase out the use of HFCs. The Kigali Amendment to the Montreal Protocol, adopted in 2016, aims to gradually reduce the production and consumption of HFCs globally.
  • Many countries are transitioning to alternative refrigerants with lower global warming potentials, such as hydrofluoroolefins (HFOs) and natural refrigerants like ammonia and carbon dioxide. These efforts are essential for mitigating climate change by reducing the emissions of potent greenhouse gases like HFC
5. What are the adverse effects?
 
The greenhouse gas effect, when intensified beyond natural levels due to human activities, leads to a range of adverse effects on the environment, ecosystems, and human societies.
 
Some of these effects include:
  • The primary consequence of intensified greenhouse gas effect is global warming. Increased concentrations of greenhouse gases in the atmosphere trap more heat, leading to a rise in average global temperatures
  • Global warming alters weather patterns and climatic conditions worldwide, leading to changes such as more frequent and intense heatwaves, storms, droughts, and floods. These changes can disrupt ecosystems, agriculture, and water supplies, leading to ecological imbalances and economic losses
  • Warmer temperatures cause polar ice caps and glaciers to melt, contributing to rising sea levels. This phenomenon threatens coastal communities, low-lying islands, and habitats, increasing the risk of flooding and erosion
  •  Increased atmospheric CO2 levels lead to higher levels of carbon dioxide dissolving into oceans, resulting in ocean acidification. This harms marine life, particularly organisms with calcium carbonate shells or skeletons, such as corals, mollusks, and certain plankton species
  • Climate change disrupts ecosystems and habitats, forcing species to migrate, adapt, or face extinction. The rapid pace of climate change often outpaces the ability of many species to adapt, leading to biodiversity loss and ecosystem degradation
  • Climate change exacerbates health risks, including heat-related illnesses, respiratory problems from poor air quality, increased prevalence of infectious diseases, and food and water insecurity due to changing agricultural conditions
  • Climate change can lead to displacement of populations due to extreme weather events, loss of livelihoods in sectors such as agriculture and fishing, and increased conflicts over resources like water and arable land. These disruptions can strain social systems and economies, particularly in vulnerable regions
6.What is Montreal Protocol?
 

The Montreal Protocol is an international environmental agreement aimed at protecting the Earth's ozone layer by phasing out the production and consumption of ozone-depleting substances (ODS). It was negotiated in 1987 and entered into force in 1989. The protocol is regarded as one of the most successful international environmental treaties.

Key points about the Montreal Protocol include:

  • Objective: The primary goal of the Montreal Protocol is to phase out the production and consumption of ODS, which are substances that contain chlorine and bromine atoms and are responsible for ozone depletion in the stratosphere.

  • Ozone Layer: The ozone layer is a region of the Earth's stratosphere that contains a high concentration of ozone molecules (O3). This layer plays a crucial role in absorbing and filtering out harmful ultraviolet (UV) radiation from the sun, protecting life on Earth from its harmful effects.

  • Ozone-Depleting Substances: The Montreal Protocol targets several categories of ODS, including chlorofluorocarbons (CFCs), halons, carbon tetrachloride, and methyl chloroform, among others. These substances were commonly used in refrigeration, air conditioning, foam blowing agents, fire extinguishers, and other industrial applications.

  • Phasing Out: The protocol established a timetable for phasing out the production and consumption of ODS, with developed countries committing to earlier phase-out schedules and developing countries given more time to comply. Amendments to the protocol tightened regulations and accelerated the phase-out schedules over time.

  • Success: The Montreal Protocol is widely regarded as successful in achieving its objectives. By reducing the production and consumption of ODS, the protocol has led to a gradual recovery of the ozone layer. Scientific assessments have confirmed a decrease in the atmospheric concentrations of ODS and a healing of the ozone layer.

  • International Cooperation: The Montreal Protocol exemplifies successful international cooperation in addressing global environmental challenges. It has been ratified by almost every country in the world, demonstrating a shared commitment to protecting the ozone layer and mitigating climate change (as many ODS are also potent greenhouse gases)

7.Way Forward
 
Since 2020, the US has banned the import of HCFC 22 for any purpose other than in a process which results in its transformation or destruction. The American Innovation and Manufacturing (AIM) Act, passed by Congress in December 2020, authorised the US Environmental Protection Agency (EPA) to phase down the production and consumption of numerous forms of HFCs
 
 
For Prelims: General issues on Environmental ecology, Bio-diversity and Climate Change – that do not require subject specialization
For Mains: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment
 
 
Previous Year Questions
 
1.Global warming is attributed to the presence of the following gases in the atmosphere : (UGC NET 2022)
(A) Methane
(B) Sulphur dioxide
(C) Surface Ozone
(D) Nitrogen dioxide
(E) Carbon dioxide
Choose the correct answer from the options given below :
1.(A), (B), (C), (E) only
2.(A), (C), (E) only
3.(A), (C), (D), (E) only
4.(A), (B), (D), (E) only
Answer (2)
Source: Indianexpress
 

INITIAL PUBLIC OFFERING (IPO)

 
 
 
1. Context
 
OpenAI on Wednesday (May 28) indicated its openness to a potential future IPO, depending on the company’s own readiness as well as how public markets respond
 
2. Initial Public Offering (IPO)
 
An Initial Public Offering (IPO) is the process through which a private company offers its shares to the public for the first time and becomes a publicly traded company on a stock exchange

IPO stands for Initial Public Offering. Put simply, it is the process by which a company goes public.

It refers to the process by which a privately held company, or a government-owned enterprise like LIC, raises funds by offering shares to the public or to new investors.The IPO is the first step in the process of listing a company on the stock exchange.

In India, a company listing an IPO first has to file its offer document with the market regulator, Securities and Exchange Board of India (Sebi). The offer document contains all relevant information about the company, its promoters, its projects, financial details, the object of raising the money, terms of the issue, etc

3. Significance of IPO

A company often chooses to list on the stock exchange mainly to secure funding. Additionally, it helps expand and diversify its group of shareholders. Being listed requires the company to follow stricter disclosure norms and regulatory compliance, which ultimately protects the interests of shareholders. Moreover, it offers a convenient exit route for current investors

An Initial Public Offering (IPO) marks a major milestone for any company. It represents the transition from a privately held entity to a publicly traded one and brings several key benefits and strategic advantages:

  • The most important reason for launching an IPO is to raise funds. The money raised can be used for business expansion, product development, debt repayment, infrastructure upgrades, or other strategic initiatives
  • Going public significantly increases a company's brand recognition and trust among investors, customers, and partners. It demonstrates a level of transparency and financial strength that boosts the company’s reputation
  • An IPO enables a company to broaden its shareholder base, reducing the ownership concentration among founders and early investors. This can bring in a wide range of institutional and retail investors
  • Listing on the stock exchange provides a market for buying and selling shares, allowing early investors, promoters, and employees holding equity to exit or liquidate their holdings over time.
  • Public companies are required to follow stricter regulatory norms and disclose financial and operational information regularly. This promotes better transparency, governance, and accountability—beneficial for both investors and the company
  • With public listing, companies can offer Employee Stock Ownership Plans (ESOPs), making it easier to attract and retain talent by offering equity-based incentives that can be traded on the stock exchange

 

4. Eligibility

In India, the Securities and Exchange Board of India (SEBI) has set specific eligibility norms that companies must fulfill before they can raise funds from the public:

  • The company should possess net tangible assets worth at least ₹3 crore and a net worth of ₹1 crore or more in each of the last three complete financial years.

  • Additionally, it must have recorded an average pre-tax profit of ₹15 crore or more in at least three out of the five most recent financial years

 
5. Who fixes IPO share prices?
 

The IPO share price is determined by the issuing company in collaboration with the merchant banker. This pricing is based on several factors, including the company's assets, income, profit margins, and anticipated future cash flows. Once the overall valuation is established, it is divided by the total number of shares to be available after the offer to calculate the price per share.

It is important to note that SEBI, the market regulator, does not have any involvement in setting this price

 

6.Who can invest in IPO?

 

Anyone who is 18 years or older can participate in investing, provided they have a brokerage account.

There are different types of investors eligible to apply for IPOs:

  • Qualified Institutional Buyers (QIBs): This group includes entities such as foreign portfolio investors (FPIs), mutual funds, banks, insurance firms, and pension funds.

  • Retail Individual Investors (RIIs): These are individuals who apply for an amount up to ₹2 lakh in a single IPO.

  • High Net Worth Individuals (HNIs): Retail investors who invest more than ₹2 lakh fall under this category

 
For Prelims: The Companies Act, 2013, The Securities and Exchange Board of India Act, 1992, The Securities Contracts (Regulation) Act, 1956 (SCRA), The Depositories Act, 1996, Securities exanchange board of India (SEBI).
For Mains: 1. Explain how stock market is regulated in India and discuss the objectives of SEBI?
 

Source: Indianexpress

 

INITIAL PUBLIC OFFERING (IPO)

 
 
 
1. Context
 
OpenAI on Wednesday (May 28) indicated its openness to a potential future IPO, depending on the company’s own readiness as well as how public markets respond
 
2. Initial Public Offering (IPO)
 
An Initial Public Offering (IPO) is the process through which a private company offers its shares to the public for the first time and becomes a publicly traded company on a stock exchange

IPO stands for Initial Public Offering. Put simply, it is the process by which a company goes public.

It refers to the process by which a privately held company, or a government-owned enterprise like LIC, raises funds by offering shares to the public or to new investors.The IPO is the first step in the process of listing a company on the stock exchange.

In India, a company listing an IPO first has to file its offer document with the market regulator, Securities and Exchange Board of India (Sebi). The offer document contains all relevant information about the company, its promoters, its projects, financial details, the object of raising the money, terms of the issue, etc

3. Significance of IPO

A company often chooses to list on the stock exchange mainly to secure funding. Additionally, it helps expand and diversify its group of shareholders. Being listed requires the company to follow stricter disclosure norms and regulatory compliance, which ultimately protects the interests of shareholders. Moreover, it offers a convenient exit route for current investors

An Initial Public Offering (IPO) marks a major milestone for any company. It represents the transition from a privately held entity to a publicly traded one and brings several key benefits and strategic advantages:

  • The most important reason for launching an IPO is to raise funds. The money raised can be used for business expansion, product development, debt repayment, infrastructure upgrades, or other strategic initiatives
  • Going public significantly increases a company's brand recognition and trust among investors, customers, and partners. It demonstrates a level of transparency and financial strength that boosts the company’s reputation
  • An IPO enables a company to broaden its shareholder base, reducing the ownership concentration among founders and early investors. This can bring in a wide range of institutional and retail investors
  • Listing on the stock exchange provides a market for buying and selling shares, allowing early investors, promoters, and employees holding equity to exit or liquidate their holdings over time.
  • Public companies are required to follow stricter regulatory norms and disclose financial and operational information regularly. This promotes better transparency, governance, and accountability—beneficial for both investors and the company
  • With public listing, companies can offer Employee Stock Ownership Plans (ESOPs), making it easier to attract and retain talent by offering equity-based incentives that can be traded on the stock exchange

 

4. Eligibility

In India, the Securities and Exchange Board of India (SEBI) has set specific eligibility norms that companies must fulfill before they can raise funds from the public:

  • The company should possess net tangible assets worth at least ₹3 crore and a net worth of ₹1 crore or more in each of the last three complete financial years.

  • Additionally, it must have recorded an average pre-tax profit of ₹15 crore or more in at least three out of the five most recent financial years

 
5. Who fixes IPO share prices?
 

The IPO share price is determined by the issuing company in collaboration with the merchant banker. This pricing is based on several factors, including the company's assets, income, profit margins, and anticipated future cash flows. Once the overall valuation is established, it is divided by the total number of shares to be available after the offer to calculate the price per share.

It is important to note that SEBI, the market regulator, does not have any involvement in setting this price

 

6.Who can invest in IPO?

 

Anyone who is 18 years or older can participate in investing, provided they have a brokerage account.

There are different types of investors eligible to apply for IPOs:

  • Qualified Institutional Buyers (QIBs): This group includes entities such as foreign portfolio investors (FPIs), mutual funds, banks, insurance firms, and pension funds.

  • Retail Individual Investors (RIIs): These are individuals who apply for an amount up to ₹2 lakh in a single IPO.

  • High Net Worth Individuals (HNIs): Retail investors who invest more than ₹2 lakh fall under this category

 
For Prelims: The Companies Act, 2013, The Securities and Exchange Board of India Act, 1992, The Securities Contracts (Regulation) Act, 1956 (SCRA), The Depositories Act, 1996, Securities exanchange board of India (SEBI).
For Mains: 1. Explain how stock market is regulated in India and discuss the objectives of SEBI?
 

Source: Indianexpress

 

SUGAR BOARDS

 
 
1. Context
 
In order to check the sugar intake of school-going children, the Central Board of Secondary Education (CBSE) has instructed over 24,000 affiliated schools across India to establish ‘sugar boards’, where information is displayed for educating students about the risks of excessive sugar intake
 
2. What are Sugar boards?
 
‘Sugar boards’ provide essential information, including recommended sugar intake, the sugar content in commonly consumed foods (such as junk food and cold drinks), health risks associated with high sugar consumption and healthier dietary alternatives

"Sugar boards" are educational visual displays designed to raise awareness—especially among school children—about the high sugar content in processed drinks and foods. These boards typically:

  • Show common packaged beverages like sodas and fruit juices.

  • Display the equivalent number of sugar packets or teaspoons next to each item.

  • Include information on daily recommended sugar intake.

  • Highlight the health risks of excessive sugar consumption.

  • Offer suggestions for healthier food and drink alternatives

 
3. Necessity of sugar boards
 
  • The National Commission for Protection of Child Rights (NCPCR) has recommended that all schools across the country, not just those affiliated with the CBSE, implement 'sugar boards'. This includes institutions under various State education boards.
  • In a letter sent to the CBSE in March this year, the NCPCR highlighted a troubling rise in Type 2 Diabetes among children—an illness traditionally associated with adults—over the last ten years.
  • The commission attributed this rise to increased sugar consumption, largely due to the easy access to sugary snacks, drinks, and processed foods in and around school premises.
  • Although India lacks comprehensive nationwide data on the prevalence of Type 2 Diabetes in children and teenagers, estimates suggest about 397 cases per 100,000 individuals in this age group, with only China reporting higher numbers at 734 per 100,000. 
 
4. India's regulations
 
  • At present, the Food Safety and Standards Authority of India (FSSAI) enforces regulations for food brands that make specific nutritional claims. For example, a product can only be labeled as "low sugar" if it contains no more than 5 grams of sugar per 100 grams.
  • However, an official noted that while such labeling standards exist, FSSAI has not yet established specific thresholds for high fat, salt, and sugar (HFSS) consumption tailored to the Indian population.
  • Instead, India currently follows the World Health Organization (WHO) recommendations, which advise limiting sugar intake to 25 grams—or about six teaspoons—per day for both adults and children.
  • Experts believe India needs to establish its own guidelines, developed from domestic research, due to the higher risk of heart disease among Indians linked to genetic predispositions.
  • They stress the importance of gathering comprehensive epidemiological data through a nationwide study that tracks dietary habits and factors such as BMI, insulin sensitivity, cholesterol levels, and other health indicators.
  • Despite ongoing discussions, FSSAI has yet to define HFSS criteria or finalize the health-star rating system for front-of-package labeling. During a recent meeting, stakeholders were unable to agree on what constitutes HFSS in school meals.
  • It was concluded that the definition for school meals should align with that used for packaged food, and that a unified, comprehensive definition for HFSS is necessary
 
5. Way forward
 
The NCPCR is in the process of collecting data on childhood diabetes cases from public hospitals. Efforts are also being made to engage with parents during parent-teacher meetings to emphasize the value of nutritious eating habits. In addition, discussions have been held with pediatricians, who will be invited to conduct workshops and awareness sessions in schools. The launch of ‘sugar boards’ marks just the initial step in this broader health initiative
 
 
Source: The Hindu
 

AKASH MISSILES

 
 
1. Context
 
Akash (“sky” in Sanskrit) is a mobile short-to-medium-range surface-to-air missile system developed by the Defence Research and Development Organisation (DRDO), and currently in service with the Indian Air Force (IAF) and the Indian Army.
 
2. About Akash Missiles
 
  • Akash is developed to safeguard strategic locations and high-value assets by providing air defence capabilities. It is capable of tracking and engaging several airborne threats at once, including hostile aircraft, missiles, and drones.
  • The project was initiated in the late 1980s under the Integrated Guided Missile Development Programme (IGMDP) by DRDO. Initial testing phases, such as system evaluations and live-fire exercises, took place during the late 1990s and early 2000s.
  • These were followed by comprehensive user evaluations by the Indian Air Force (IAF) and the Indian Army. The IAF officially inducted the Akash system in 2014, with the Army following suit in 2015.
  • Presently, both services operate several units equipped with the system. According to DRDO, Akash is approximately 96% indigenously developed, making it one of the most locally produced advanced defence systems in India.
  • Over 250 companies contribute to the manufacturing and supply chain, with Bharat Electronics Limited (BEL) and Bharat Dynamics Limited handling key production responsibilities
 
3. Working of the Akash missile
 
 
  • An integrated 3D Central Acquisition Radar monitors the skies for incoming aerial threats. As per Bharat Electronics Limited (BEL), this radar delivers three-dimensional target information—including distance, direction, and height—with a detection range of up to 120 km in all directions.
  • The Akash missile system is supported by an advanced multifunctional fire control radar called Rajendra, which can detect targets within an 80 km range. This radar is capable of simultaneously tracking several threats and guiding multiple missiles at once.
  • The radar's accurate tracking inputs are relayed to the command and control unit, which calculates the missile’s interception path.
  • The missile is launched from a mobile platform, each of which can carry up to three missiles. Weighing over 700 kilograms and powered by a ramjet engine, the Akash missile can achieve speeds up to Mach 2.5.
  • As the missile nears its target, an onboard seeker activates to ensure it locks onto and follows the moving threat. The Akash system is known for its high agility in flight, allowing it to adjust course mid-air, which enhances interception success rates.
  • In addition, it carries a 55 kg pre-fragmented warhead triggered by a proximity fuse. This allows the missile to inflict substantial damage even without a direct collision
 
4. Significance of Akash missile
 
 
  • PRECISION: The Akash missile system is known for its high accuracy and overall effectiveness in neutralizing targets. This performance stems from a combination of its advanced guidance system, agile missile design, and rapid reaction from detection to interception. Notably, the Rajendra radar is capable of tracking low-flying targets—a task that many traditional radar systems find challenging—throughout their flight path.
  • MOBILITY: The Akash system is fully mobile, with all components—including the missile launcher, command center, onboard guidance systems, C4I (command, control, communications, and intelligence) units, ground support gear, and the Rajendra radar—mounted on mobile platforms. This allows for swift transport, deployment, and repositioning by road or rail, enabling rapid adaptability in various operational scenarios.
  • ELECTRONIC RESISTANCE: The Akash system is equipped with electronic counter-countermeasure (ECCM) capabilities, providing strong resistance against enemy electronic warfare tactics. According to BEL, the system is highly resistant to both active and passive jamming. While electronic countermeasures (ECM) aim to disrupt or mislead detection systems like radar or infrared sensors, ECCM technologies are specifically designed to protect against such interference and maintain operational integrity
 
5. Future of Akash missile
 
  • The initial version of the Akash missile had a range of approximately 27 to 30 kilometers and was capable of reaching altitudes up to 18 kilometers. To enhance performance, the DRDO has been working on upgraded versions with improved range and capabilities.
  • Akash Prime: Although it maintains the same range as the original, Akash Prime is significantly more reliable under low-temperature conditions and at higher altitudes. This version was developed in response to operational feedback from the Indian Air Force (IAF) and the Army, who sought a system suitable for high-altitude defense of vital assets. It also features an indigenous active radio frequency seeker, which increases targeting precision. The missile’s first test flight took place in September 2021.
  • Akash-NG (New Generation): The DRDO has also developed and tested the Akash-NG, intended for the IAF to engage highly agile airborne threats that have a low radar cross-section (RCS). RCS measures how visible an object is to radar—lower values indicate greater stealth, as seen in fifth-generation fighter jets designed with radar-evading materials and shapes.
  • Akash-NG offers an extended range of up to 70 kilometers. It is lighter, more compact, and has a reduced logistics footprint. The missile is canisterized, meaning it is stored and launched from sealed containers, which enhances its shelf life and simplifies handling and deployment
 
6. Way Forward
 
In December 2020, the Union Cabinet approved the export of Akash after many friendly nations showed interest during international exhibitions. The export version, however, will be different from what is in service of the Indian armed forces
 
 
 
 
For Prelims: Current events of national and international importance.
For Mains: General Studies III: Achievements of Indians in science & technology; indigenization of technology and developing new technology
 
Previous Year Questions
 
1.Consider the following statements :(UPSC CSE 2023)
 
1. Ballistic missiles are jet-propelled at subsonic speeds throughout their flights, while cruise missiles are rocket-powered only in the initial phase of flight.
2. Agni-V is a medium-range supersonic cruise missile, while BrahMos is a solid-fuelled intercontinental ballistic missile.
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 (D)
Source: Indianexpress

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