• It is the rise in prices of goods and services within a particular economy wherein consumers' purchasing power decreases, and the value of the cash holdings erodes.
• In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures inflation.
• Some causes that lead to inflation are demand increases, reduction in supply, demand-supply gap, excess circulation of money, increase in input costs, devaluation of the currency, and rise in wages, among others.

3. How is Food Inflation measured in India?

Food inflation in India is measured using various indices and indicators. The primary indices used to measure food inflation in India include the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). Both indices provide insights into the overall price movements of goods and services, including food items, but they differ in terms of their coverage and methodology.

Consumer Price Index (CPI)

• The CPI is a key indicator used by the Government of India and the Reserve Bank of India (RBI) to monitor inflation, including food inflation.
• The CPI measures the average change over time in the prices paid by urban and rural consumers for a basket of goods and services, including food items, housing, clothing, transportation, and more.
• Within the CPI, food and beverages form a significant component, and food inflation is specifically derived from the changes in food prices within the CPI basket.
• The CPI is released monthly by the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation.

Wholesale Price Index (WPI)

• The WPI is another important index that tracks price changes at the wholesale level for a selected group of commodities, including food products, manufactured goods, fuel, and more.
• The WPI measures price changes from the perspective of producers and wholesalers, providing insights into inflationary pressures in the production and distribution stages.
• Food articles, such as cereals, pulses, vegetables, fruits, and edible oils, are included in the WPI basket for monitoring food inflation.
• The WPI is released weekly by the Office of Economic Adviser under the Ministry of Commerce and Industry.

In addition to these indices, other indicators such as the Food Sub-Index within the CPI and specific price indices for essential food items (like vegetables, pulses, and cereals) are also used to gauge food inflation more accurately. The RBI closely monitors food inflation trends as part of its monetary policy framework to make informed decisions regarding interest rates and economic stability. Overall, the combination of CPI, WPI, and specific food-related indices provides a comprehensive assessment of food inflation in India.

4. Headline and Core Inflation

Inflation is a key economic indicator that measures the rate at which prices of goods and services rise over time. In India, two important measures of inflation are headline inflation and core inflation.

• Headline Inflation: Headline inflation refers to the overall rate of inflation in an economy, taking into account the price changes across all goods and services included in the consumer basket. It reflects the broad-based movement in prices, including food, fuel, housing, transportation, and other essential and non-essential items. Headline inflation is typically measured using indices such as the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). Fluctuations in headline inflation can be influenced by various factors, including changes in global commodity prices, government policies, supply chain disruptions, and demand-side pressures.
• Core Inflation: Core inflation, on the other hand, excludes volatile items such as food and energy from the basket of goods used to calculate inflation. By excluding these volatile components, core inflation provides a more stable measure of underlying inflationary trends in the economy. Core inflation is often considered a better gauge of long-term inflationary pressures and helps policymakers in making informed decisions regarding monetary policy. The Reserve Bank of India (RBI), for example, closely monitors core inflation to assess the underlying inflationary trends and formulate appropriate monetary policy responses.

Understanding the distinction between headline and core inflation is essential for policymakers, businesses, and consumers alike. While headline inflation provides a comprehensive view of overall price movements, core inflation offers insights into the underlying inflationary pressures, helping to distinguish between temporary fluctuations and sustained inflation trends. By closely monitoring both measures of inflation, policymakers can effectively manage inflationary risks and maintain price stability, contributing to sustainable economic growth and stability.

5. Monetary Policy Committee (MPC)

The Monetary Policy Committee (MPC) is a crucial institutional framework established by the Reserve Bank of India (RBI) to formulate and implement monetary policy decisions in India. 

Role

• Formulating Monetary Policy: The primary role of the MPC is to formulate and implement monetary policy in India. This includes setting the key policy interest rates, such as the repo rate, reverse repo rate, and marginal standing facility (MSF) rate, to achieve the objectives of price stability and economic growth.
• Targeting Inflation: The MPC's main objective is to maintain price stability, which is primarily achieved by targeting a specific inflation rate. In India, the RBI has adopted a flexible inflation targeting framework, where the MPC aims to keep the Consumer Price Index (CPI) inflation within a specified target range over the medium term. Currently, the inflation target is set at 4% with a tolerance band of +/- 2%.
• Evaluating Economic Conditions: The MPC assesses various economic indicators, such as GDP growth, inflation expectations, fiscal policy measures, global economic developments, and financial market conditions, to make informed decisions about monetary policy.
• Communication: The MPC communicates its monetary policy decisions, rationale, and outlook for the economy through periodic press releases, statements, and the publication of meeting minutes. This transparency enhances predictability and credibility in monetary policy.

Composition

• Members: The MPC consists of six members, including three members nominated by the Government of India and three members from the Reserve Bank of India. The Governor of the RBI serves as the ex-officio Chairperson of the MPC.
• Appointment: The members of the MPC are appointed by the Central Government based on their expertise and experience in economics, banking, finance, or related fields. The RBI Governor and Deputy Governor (in charge of monetary policy) are automatic members of the MPC.
• Voting Rights: Each member of the MPC, including the RBI Governor, has one vote in the decision-making process. Decisions are made by a majority vote, with the Governor having the casting vote in case of a tie.
• Terms: Members of the MPC serve fixed terms, typically for four years, with eligibility for reappointment. This ensures continuity and stability in monetary policy formulation.

6. The Way Forward

By implementing the measures and fostering collaborative efforts among policymakers, regulators, and stakeholders, India can effectively manage inflationary pressures, maintain price stability, and promote sustainable economic growth and development.

LINE OF ACTUAL CONTROL (LAC)

 

1.Context

India and China must move forward on de-escalation at the Line of Actual Control (LAC), External Affairs Minister S. Jaishankar told Chinese Foreign Minister Wang Yi in Beijing on Monday, indicating that disengagement, which was achieved nine months ago, has still not been followed up by the actual withdrawal of troops.

Pic credits: TRT WORLD

 

2.About Line of Actual Control (LAC)

The LAC is the demarcation that separates Indian-controlled territory from Chinese-controlled territory.

India considers the LAC to be 3,488 km long, while the Chinese consider it to be only around 2,000 km

It is divided into three sectors:

 

The eastern sector which spans Arunachal Pradesh and Sikkim, The middle sector in Uttarakhand and Himachal Pradesh, and the western sector in Ladakh

 

3.The disagreement

• The alignment of the LAC in the eastern sector is along the 1914 McMahon Line, and there are minor disputes about the positions on the ground as per the principle of the high Himalayan watershed
• This pertains to India’s international boundary as well, but for certain areas such as Longju and Asaphila
• The line in the middle sector is the least controversial but for the precise alignment to be followed in the Barahoti plains.
• The major disagreements are in the western sector where the LAC emerged from two letters written by Chinese Prime Minister Zhou Enlai to PM Jawaharlal Nehru in 1959, after he had first mentioned such a ‘line’ in 1956.
• In his letter, Zhou said the LAC consisted of “the so-called McMahon Line in the east and the line up to which each side exercises actual control in the west”
• After the 1962 War, the Chinese claimed they had withdrawn to 20 km behind the LAC of November 1959
• During the Doklam crisis in 2017, the Chinese Foreign Ministry spokesperson urged India to abide by the “1959 LAC”
• India rejected the concept of LAC in both 1959 and 1962. Even during the war, Nehru was unequivocal: “There is no sense or meaning in the Chinese offer to withdraw twenty kilometres from what they call ‘line of actual control’

4.India's agreement to LAC

• LAC was discussed during Chinese Premier Li Peng’s 1991 visit to India, where PM P V Narasimha Rao and Li reached an understanding to maintain peace and tranquillity at the LAC. 
• India formally accepted the concept of the LAC when Rao paid a return visit to Beijing in 1993 and the two sides signed the Agreement to Maintain Peace and Tranquillity at the LAC
• The reference to the LAC was unqualified to make it clear that it was not referring to the LAC of 1959 or 1962 but to the LAC at the time when the agreement was signed
• To reconcile the differences about some areas, the two countries agreed that the Joint Working Group on the border issue would take up the task of clarifying the alignment of the LAC

5.How is the LAC different from the Line of Control with Pakistan?

The LoC emerged from the 1948 ceasefire line negotiated by the UN after the Kashmir War. It was designated as the LoC in 1972, following the Shimla Agreement between the two countries. It is delineated on a map signed by DGMOs of both armies and has the international sanctity of a legal agreement.

The LAC, in contrast, is only a concept – it is not agreed upon by the two countries, neither delineated on a map or demarcated on the ground.

 

For Prelims: LAC, LOC For Mains: 1.What is this ‘line of control’? Is this the line China have created by aggression. Comment 2.What we know about the clash between Indian and Chinese soldiers in Arunachal Pradesh

 

Previous Year Questions 1.The Line of Actual Control (LAC) separates  (Karnataka Civil Police Constable 2020) A.India and Pakistan B.India and Afghanistan C.India and Nepal D.India and China Answer (D) 2.LAC (Line of Actual Control) is an effective border between India and ______. (SSC CHSL 2020) A.Pakistan B.Bhutan C.Sri Lanka D.China Answer (D)

 

 

 

Source:indianexpress

 

GOODS AND SERVICE TAX (GST)

 

 

1. Context

 

TO IMPART urgency to the process of overhauling the Goods and Services Tax (GST) regime, Union Home Minister Amit Shah is set to initiate discussions with all stakeholders — states as well as Central ministries — to build consensus and resolve contentious outstanding issues.

 

2. What is the Goods and Services Tax (GST)?

• The Goods and Services Tax (GST) is a value-added tax levied on the supply of goods and services at each stage of the production and distribution chain. It is a comprehensive indirect tax that aims to replace multiple indirect taxes imposed by the central and state governments in India.
• GST is designed to simplify the tax structure, eliminate the cascading effect of taxes, and create a unified national market. Under the GST system, both goods and services are taxed at multiple rates based on the nature of the product or service. The tax is collected at each stage of the supply chain, and businesses are allowed to claim a credit for the taxes paid on their inputs.
• The GST system in India came into effect on July 1, 2017, replacing a complex tax structure that included central excise duty, service tax, and state-level taxes like VAT (Value Added Tax), among others. The GST Council, consisting of representatives from the central and state governments, is responsible for making decisions on various aspects of GST, including tax rates and rules.
• GST is intended to create a more transparent and efficient tax system, reduce tax evasion, and promote economic growth by fostering a seamless flow of goods and services across the country. It has a significant impact on businesses, as they need to comply with the new tax regulations and maintain detailed records of their transactions for GST filing

3.Goods and Services Tax (GST) and 101st Amendment Act, 2016

The Goods and Services Tax (GST) in India was introduced through the 101st Amendment Act of 2016. This constitutional amendment was a crucial step in the implementation of GST, which aimed to create a unified and comprehensive indirect tax system across the country.

Here are some key points related to the 101st Amendment Act and GST:

 

• The 101st Amendment Act was enacted to amend the Constitution of India to pave the way for the introduction of the Goods and Services Tax.
• It added a new article, Article 246A, which confers concurrent powers to both the central and state governments to levy and collect GST
• The amendment led to the creation of the GST Council, a constitutional body consisting of representatives from the central and state governments. The council is responsible for making recommendations on GST rates, exemptions, and other related issues
• The amendment introduced a dual GST structure, where both the central government and the state governments have the power to levy and collect GST on the supply of goods and services
• For inter-state transactions, the 101st Amendment Act provides that the central government would levy and collect the Integrated Goods and Services Tax (IGST), which would be a sum total of the central and state GST
• The amendment also included a provision for compensating states for any revenue loss they might incur due to the implementation of GST for a period of five years

The 101st Amendment Act was a critical legislative step that provided the constitutional framework for the implementation of GST in India. It addressed the need for a unified tax system, simplifying the tax structure and promoting a common market across the country. The subsequent establishment of the GST Council has played a pivotal role in the ongoing management and evolution of the GST system in India

 

4. What are the different types of Goods and Services Tax (GST)?

In India, the Goods and Services Tax (GST) is structured into different tax rates based on the nature of the goods and services. As of my last knowledge update in January 2022, the GST rates are divided into multiple slabs. It's important to note that tax rates may be subject to changes, and new amendments could have been introduced since then. As of my last update, the GST rates are as follows:

• Nil Rate:

  • Some goods and services are categorized under the nil rate, meaning they attract a 0% GST. This implies that no tax is levied on the supply of these goods or services.

• 5% Rate:

  • This is a lower rate, applicable to essential goods such as certain food items, medical supplies, and other basic necessities.

• 12% Rate:

  • Goods and services falling in this category attract a 12% GST rate. Items such as mobile phones, processed foods, and certain services fall under this slab.

• 18% Rate:

  • A higher rate of 18% is applicable to goods and services such as electronic items, capital goods, and various services.

• 28% Rate:

  • The highest GST rate of 28% is applied to luxury items, automobiles, and certain goods and services that are considered non-essential or fall into the luxury category.

• Compensation Cess:

  • In addition to the above rates, some specific goods attract a compensation cess, which is levied to compensate the states for any revenue loss during the transition to GST. This is often applied to items like tobacco and luxury cars.

• Zero Rate:

  • Certain categories of goods and services may be specified as "zero-rated," which means they are effectively taxed at 0%. This is different from the nil rate, as it allows businesses to claim input tax credit on inputs, capital goods, and input services.

• Exempt Supplies:

  • Some goods and services may be exempt from GST altogether. This means that they are not subject to any GST, and businesses cannot claim input tax credit on related inputs

 

5.Central GST (CGST), State GST (SGST), Union territory GST (UTGST) and Integrated GST (IGST)

 

 

Subject	Central GST (CGST)	State GST (SGST)	Union Territory GST (UTGST)	Integrated GST (IGST)
Levied by	Central Government	Respective State Governments	Union Territory Administrations	Central Government (on inter-state transactions)
Applicability	On intra-state supplies (within the same state)	On intra-state supplies (within the same state)	On intra-union territory supplies (within the same union territory)	On inter-state supplies (across states or union territories)
Rate Determination	Determined by the Central Government	Determined by the Respective State Government	Determined by the Union Territory Administration	IGST rate is a sum of CGST and SGST rates
Revenue Collection	Collected by the Central Government	Collected by the Respective State Government	Collected by the Union Territory Administration	Collected by the Central Government (on inter-state transactions)
Utilization of Revenue	Shared between Central and State Governments	Retained by the Respective State Government	Retained by the Union Territory Administration	Shared between Central and State Governments
Purpose	Part of the dual GST structure, meant to cover central taxes	Part of the dual GST structure, meant to cover state taxes	Applicable in union territories for intra-territory supplies	Applied to regulate and tax inter-state supplies
Input Tax Credit (ITC)	ITC available for CGST paid on inputs and services	ITC available for SGST paid on inputs and services	ITC available for UTGST paid on inputs and services	ITC available for both CGST and SGST paid on inputs
Tax Jurisdiction	Applies within a particular state	Applies within a particular state	Applies within a particular union territory	Applies to transactions across states and union territories
GSTN Portal for Filing Returns	Central GSTN portal	State-specific GSTN portals	UTGSTN portal	Integrated GSTN portal

 

 

6.What are the benefits of Goods and Services Tax (GST) in India?

 

The Goods and Services Tax (GST) in India was implemented with the aim of bringing about significant reforms in the indirect tax structure. Several benefits have been associated with the introduction of GST.

 

Here are some key advantages:

 

• GST replaced multiple indirect taxes levied by the central and state governments, simplifying the tax structure. This streamlined system reduces the complexity of compliance for businesses
• GST eliminates the cascading effect of taxes, where taxes are levied on top of other taxes. With a seamless credit mechanism, businesses can claim input tax credit on the taxes paid on their purchases, leading to a more transparent and efficient system
• GST has facilitated the creation of a common national market by harmonizing tax rates and regulations across states. This has reduced trade barriers and promoted the free flow of goods and services throughout the country
• The GST system has incorporated technology-driven processes, including electronic filing and real-time reporting, making it harder for businesses to evade taxes. This has contributed to increased tax compliance
• The input tax credit mechanism under GST benefits manufacturers, as they can claim credits for taxes paid on raw materials and input services. This has a positive impact on the cost of production and enhances the competitiveness of Indian goods in the international market
• GST brings transparency to the taxation system. The online filing of returns and the availability of transaction-level data make it easier for tax authorities to monitor and track transactions, reducing the scope for corruption
• GST has replaced a complex system of filing multiple tax returns with a more straightforward mechanism. Businesses now need to file fewer returns, reducing the compliance burden
• The implementation of GST has contributed to an improvement in the ease of doing business in India. The unified tax system has made it simpler for businesses to operate across states and has reduced the paperwork and bureaucratic hurdles associated with tax compliance
• GST has led to the harmonization of tax rates across states and union territories, minimizing the tax rate disparities that existed earlier. This creates a more predictable tax environment for businesses

7.Goods and Services Tax (GST)-Issues and Challenge

 

• Despite the intention to simplify the tax structure, the multi-tiered rate system (0%, 5%, 12%, 18%, and 28%) and the inclusion of cess on certain goods have introduced complexity. The classification of goods and services under different tax slabs can be challenging, leading to disputes and confusion
• The successful implementation of GST relies heavily on technology. Issues such as technical glitches on the GSTN (Goods and Services Tax Network) portal, especially during the initial phases, have caused difficulties for businesses in filing returns and complying with regulations
• The compliance requirements for businesses under GST, including multiple returns filing, have been perceived as burdensome. Smaller businesses, in particular, may find it challenging to adapt to the new system and comply with the various provisions
• The transition from the previous tax regime to GST posed challenges, especially for businesses in terms of understanding the new tax structure, reconfiguring accounting systems, and ensuring a smooth transition of credits from the old tax system to the GST system
• The classification of certain goods and services into specific tax slabs has been a source of contention. Ambiguities in classification have led to disputes and litigations, with businesses seeking clarity on the applicable tax rates
• The implementation of GST has increased compliance costs for businesses due to the need for sophisticated IT infrastructure, the hiring of tax professionals, and efforts to ensure accurate reporting and filing
• Challenges related to availing and matching input tax credits have been reported. Timely matching of credits and resolving discrepancies can be cumbersome, leading to concerns about the seamless flow of credit across the supply chain
• The anti-profiteering provisions were introduced to ensure that businesses pass on the benefits of reduced tax rates to consumers. However, the implementation of anti-profiteering measures has been criticized for its complexity and potential for disputes
• The periodic changes in the GST return filing system have created challenges for businesses in adapting their processes. Delays and complexities in return filing can affect working capital management

8.Goods and Services Tax Council (GST Council)

 

The Goods and Services Tax Council (GST Council) is a constitutional body in India that makes recommendations on the Goods and Services Tax (GST). It was established under the Constitution (122nd Amendment) Act, 2016, which introduced the GST in India

The GST Council consists of the following members:

• The Union Finance Minister, who is the Chairperson of the Council.
• The Union Minister of State in charge of revenue or any other Minister of State nominated by the Union Government.
• One Minister from each state, nominated by the Governor of that state.
• The Chief Secretary of each state, ex-officio.
• If the President, on the recommendation of the Council, so directs, one representative of each Union territory which has a legislature, to be nominated by the Lieutenant Governor of that Union territory.
• Three to seven members (other than Ministers) to be nominated by the Union Government, of whom at least one member shall be from the field of economics and another from the field of chartered accountancy, legal affairs or public finance

9. Way forward

 

It's important to note that the composition and structure of the GST Council may evolve over time, and there might have been changes since my last update in January 2022. To obtain the latest and most accurate information about the GST Council and its members, it is recommended to refer to official government sources or recent announcements by the relevant authorities

 

For Prelims: Economic and Social Development and Indian Polity and Governance For Mains: General Studies II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein General Studies III: Inclusive growth and issues arising from it

 

 

Previous Year Questions   1.Which of the following are true of the Goods and Services Tax (GST) introduced in India in recent times? (UGC Paper II 2020) A. It is a destination tax B. It benefits producing states more C. It benefits consuming states more D. It is a progressive taxation E. It is an umbrella tax to improve ease of doing business Choose the most appropriate answer from the options given below: A.B, D and E only B.A, C and D only C.A, D and E only D.A, C and E only Answer (D)

 

Source: Indianexpress

 

UNITED STATES AGENCY OF INTERNATIONAL DEVELOPMENT (USAID)

 

 

1. Context

 

It was William S Gaud, administrator of the United States Agency for International Development (USAID), who coined the term “Green Revolution”.

 

2.  United States Agency of International Development (USAID)

 

• The United States Agency for International Development (USAID) is recognized as the primary international humanitarian and development agency of the U.S. government, as described by the Congressional Research Service (CRS).
• The agency delivers assistance to other nations primarily by financing non-governmental organizations (NGOs), foreign governments, international institutions, and other U.S. agencies. This funding is often directed toward specific programs aimed at reducing poverty, improving access to education and healthcare, and addressing other critical needs.
• In the fiscal year 2023, USAID managed over $43 billion in funds and extended assistance to approximately 130 countries. The top 10 recipients of USAID-managed funds during this period, listed in descending order of funding, were: Ukraine, Ethiopia, Jordan, the Democratic Republic of Congo, Somalia, Yemen, Afghanistan, Nigeria, South Sudan, and Syria.
• According to CRS, USAID employed more than 10,000 individuals in FY2023, with about two-thirds of its workforce stationed overseas. This figure does not include the thousands of "institutional support contractors" who play a crucial role in implementing the agency’s programs. USAID operates through more than 60 missions worldwide, ensuring its presence and impact across the globe

 

3. History of USAID

 

The United States Agency for International Development (USAID) was established on November 3, 1961, under President John F. Kennedy’s administration. Its creation marked a significant step in U.S. foreign policy, consolidating various foreign assistance programs under a single agency to streamline and enhance the effectiveness of American development and humanitarian efforts worldwide.

Origins and Early Years:

• Post-World War II Context: After World War II, the U.S. launched several aid programs, such as the Marshall Plan (1948), to rebuild war-torn Europe and counter the spread of communism. These efforts laid the groundwork for a more structured approach to international development.

• Point Four Program: In 1949, President Harry S. Truman introduced the Point Four Program, which focused on providing technical assistance to developing countries. This initiative emphasized sharing American expertise in agriculture, health, and industry to promote economic growth and stability.

• Cold War Era: During the Cold War, U.S. foreign aid became a strategic tool to counter Soviet influence. Programs like the Mutual Security Act (1951) and the Development Loan Fund (1957) were established to support allies and foster development in emerging nations.

Establishment of USAID:

• In 1961, President Kennedy signed the Foreign Assistance Act, which reorganized U.S. foreign aid programs and led to the creation of USAID. The agency was tasked with managing economic assistance and humanitarian programs, focusing on long-term development rather than short-term relief.

• USAID absorbed the functions of earlier organizations, such as the International Cooperation Administration (ICA) and the Development Loan Fund, to create a unified approach to foreign aid.

Evolution and Expansion:

• 1960s-1970s: USAID focused on infrastructure development, agriculture, and education in developing countries. Programs like the Green Revolution helped increase agricultural productivity in nations such as India and Pakistan.

• 1980s: The agency shifted its focus to address global challenges such as population growth, environmental degradation, and the HIV/AIDS epidemic. It also played a key role in supporting democratic transitions in Latin America and Eastern Europe.

• 1990s: After the Cold War, USAID’s mission expanded to include promoting democracy, governance, and market-oriented reforms. It also provided humanitarian assistance during crises, such as the Rwandan genocide and the Balkan conflicts.

• 2000s: USAID became a critical player in post-9/11 efforts, particularly in Afghanistan and Iraq, where it supported reconstruction, governance, and counterterrorism initiatives. It also intensified its focus on global health, particularly through programs like the President’s Emergency Plan for AIDS Relief (PEPFAR).

• 2010s-Present: USAID has increasingly emphasized innovation, partnerships with the private sector, and sustainable development. It has also addressed emerging challenges such as climate change, food security, and global pandemics like COVID-19

 

4.Roles and Functions of USAID

 

The United States Agency for International Development (USAID) advances U.S. foreign policy and global development through:

• Economic Development: Reduces poverty, boosts agriculture, and promotes trade and investment.

• Democracy & Governance: Strengthens institutions, fights corruption, and supports civil society.

• Global Health: Combats diseases (e.g., HIV/AIDS, malaria), improves maternal/child health, and strengthens healthcare systems.

• Humanitarian Assistance: Provides disaster relief, supports refugees, and aids crisis recovery.

• Education & Workforce Development: Expands access to education, offers skills training, and promotes higher education partnerships.

 

5. India and USAID

 

 

India and USAID have a long-standing partnership focused on development and humanitarian efforts, though the nature of their collaboration has evolved over time. Initially, USAID played a significant role in India’s development during the mid-20th century, particularly in areas like agriculture, health, and education. However, as India’s economy grew and it became a rising global power, the relationship shifted from traditional aid to more collaborative and strategic partnerships.

Key Areas of Collaboration:

• Agriculture and Food Security:

  • USAID supported India’s Green Revolution in the 1960s, helping to increase agricultural productivity and reduce food shortages.

  • Ongoing programs focus on sustainable farming, climate-resilient crops, and improving supply chains.

• Health:

  • USAID has contributed to India’s efforts in combating infectious diseases like HIV/AIDS, tuberculosis, and malaria.

  • It has also supported maternal and child health programs, immunization campaigns, and strengthening healthcare systems.

• Clean Energy and Climate Change:

  • USAID collaborates with India on renewable energy projects, energy efficiency, and climate resilience initiatives.

  • Programs aim to reduce greenhouse gas emissions and promote sustainable development.

• Education and Skill Development:

  • USAID has supported initiatives to improve access to quality education, particularly for girls and marginalized communities.

  • It also promotes vocational training and workforce development to enhance employability

 

6. Recent Controversy

 

• The debate surrounding USAID’s role in India highlights the growing polarization in public discourse, which risks eroding national confidence and international reputation. Both the BJP and Congress have engaged in a political tussle, using USAID-funded projects and foreign affiliations as tools to target each other.
• However, much of this rhetoric is driven by misinformation and misinterpretation, often influenced by narratives from the Trump administration, which regarded international aid as an unnecessary burden on American resources.
• While the U.S. may have its own reasons for reassessing aid priorities, it is unfortunate that India’s leading political parties are adopting these arguments without deeper analysis.
• USAID has a longstanding history of supporting developmental projects in India, many of which have been carried out in collaboration with the Indian government.
• However, due to the lack of transparent and verified data on the scope and impact of these initiatives, discussions around them tend to be uninformed and biased.
• In an interconnected world, where nations compete for investment, technology, and skilled talent across borders, using foreign connections as a political weapon may serve short-term propaganda goals but ultimately harms India’s domestic political landscape and weakens its ambitions of becoming a global power

 

7. Way Forward

 

USAID’s roles and functions are integral to U.S. efforts to promote global stability, economic growth, and human welfare. By addressing critical issues such as poverty, health, education, and climate change, USAID not only improves lives worldwide but also advances U.S. national security and diplomatic interests. Its work reflects a commitment to fostering sustainable development and building a more prosperous, equitable, and resilient world

 

For Prelims: Non-Government Organisation (NGO), USAID   For Mains: GS II - International organisation

 

Source: Indianexpress

 

ARTICLE 370 AND FEDERALISM

 

 

 

 

 

1. Context 

 

 

Politics in Jammu and Kashmir is heating up over ‘Martyrs’ Day’ on July 13, the official holiday for which was scrapped after the abrogation of Article 370 in 2019. This is the first time since then that an elected government is in power.

 

 

2. About Article 370 and Federalism

 

 

Article 370 of the Indian Constitution was a temporary provision that granted special autonomy to the region of Jammu and Kashmir. It was drafted in 1947, following the Instrument of Accession that allowed Jammu and Kashmir to accede to the newly formed Union of India. In August 2019, the Indian government revoked Article 370 through a presidential order. 

 

Federalism in India refers to the system of governance where political authority and powers are divided between the central government and the various states and union territories that constitute the country. The federal structure of India is enshrined in the Constitution, which outlines the distribution of powers between the Union (central government) and the states, providing for a cooperative and coordinated relationship between them. 

Impact on Federalism

• The lead judgment highlighted that Jammu and Kashmir had relinquished any 'element of sovereignty' post the execution of the Instrument of Accession in 1947.
• Constitutional experts believe these observations will significantly impact federalism, a fundamental aspect of the Indian Constitution.
• Justices Sanjay Kishan Kaul and Sanjiv Khanna concurred with the lead judgment, solidifying the unanimous stance of the Supreme Court on the matter.
• Legal experts anticipate a lasting impact on federalism, considering it a basic feature of the Indian Constitution.
• The judgment's interpretation of J&K's historical context and its relation to the Union could set a precedent for future federalism-related cases.
• The Supreme Court dismissed the petitioners' arguments, reasoning that challenging the irreversibility of presidential actions could paralyze everyday administrative functions.
• It emphasized that the exercise of such power must have a reasonable connection to the objective of the Presidential Proclamation.
• The burden of proof was placed on those challenging the President's actions during an emergency to establish a 'mala fide or extraneous exercise of power.'
• The court referred to the precedent set in S. R. Bommai versus Union of India (1994), defining the scope of powers exercisable during the President's rule. This legal reference added weight to the court's justification for upholding the President's authority in the J&K case.

 

3. Conversion of State to Union Territory

 

The Supreme Court's recent ruling on Article 370 raises a crucial question: can a state be converted into a Union Territory in India? While the court avoided a definitive answer, it offered some key insights:

Court's Observations

• The court upheld the carving out of Ladakh from J&K, deeming it permissible under Article 3.
• The court did not address the validity of J&K's conversion due to the promised restoration of statehood.
• Views of the state legislature regarding such reorganization are only recommendations, not binding on Parliament.

Concerns and Cautions

• The Chief Justice warned of the negative consequences for autonomy, historical context, and federalism principles.
• Justice Khanna emphasized the "grave consequences" of lost elected government and diminished federalism. Strong and convincing grounds are required for such a conversion.

 

 

4. State's Role Minimized

 

The Supreme Court's ruling significantly diminishes the state's role in the context of abrogating Article 370. 

• The Court upheld the President's ability to unilaterally notify the cessation of Article 370 under Article 370(3). This bypasses the consultation requirement with the state government stipulated in Article 370(1)(d).
• The justification lies in the perceived equivalence of effects. Applying all Indian Constitution provisions through Article 370(1)(d) is seen as achieving the same outcome as issuing a notification under Article 370(3) to cease its existence. In both cases, the full Indian Constitution applies, rendering the State Constitution inoperative.
• While consultation is deemed irrelevant in this scenario, it would still be required if applying Indian Constitution provisions involved amending the State Constitution.

 

 

5. President's Power to Abrogate Article 370

 

• The Court's ruling clarifies the President's power in abrogating Article 370, addressing concerns about its dependence on the J&K Constituent Assembly, which dissolved in 1957:
• Despite the Assembly's absence, the Court ruled that the President's power to abrogate Article 370 under Article 370(3) remains and can be exercised "unilaterally."
•  Chief Justice Chandrachud argued that restricting the power after the Assembly's dissolution would "freeze the integration" of J&K into India, contradicting Article 370's intended purpose of gradual assimilation.
•  Article 370 aimed to bring J&K in line with other states over time, making the Assembly's recommendation secondary to this larger objective.
• This ruling grants the President significant unilateral authority in abrogating Article 370, even without the Assembly's input, raising questions about the balance of power and potential impact on J&K's autonomy.

 

6. About asymmetric Federalism

 

"Asymmetric federalism" refers to a system of federal government where different states within the federation possess varying degrees of autonomy and power. This means that not all states are created equal in terms of their relationship with the central government.

The Supreme Court's verdict on Article 370 clarifies its stance on Jammu and Kashmir's special status within the Indian federation:

• Unlike India's Constitution, the Court argues, J&K's own Constitution lacks any mention of "sovereignty." Therefore, Article 370 is understood as simply a particular arrangement within the broader framework of "asymmetric federalism."
• The Court compares Article 370 to provisions like Articles 371A-371J, which offer special arrangements for specific states. This emphasizes that J&K's status isn't unique but part of a wider pattern of accommodating state-specific needs.
• Accepting J&K's sovereignty based on Article 370, the Court argues, would imply similar claims for other states with special arrangements. This contradicts the fundamental principle of India's federalism, where all states possess the same core characteristic of being part of a single, sovereign nation.
• While acknowledging varying degrees of autonomy among states, the Court underlines that these variations are in "degree," not "kind." All states remain part of the same federal structure, sharing fundamental obligations and benefits.

 

 

For Prelims: Article 370, Jammu and Kashmir, Asymmetric Federalism, Article 356, President Rule, S. R. Bommai versus Union of India  For Mains:  1. Discuss the concept of "asymmetric federalism" and its relevance in the context of the J&K issue. Does the Supreme Court's ruling strengthen or weaken this principle? (250 Words) 2.  Critically analyze the Supreme Court's recent judgment upholding the abrogation of Article 370. How does it impact the concept of federalism in India? (250 Words)

 

Previous Year Questions   1. When did the Constitution of Jammu and Kashmir come into force? (UPSC CAPF 2016) A.26th January 1957 B. 15th August 1947 C. 25th July 1956 D.14th November 1947   2. State Legislature of Jammu and Kashmir can confer special rights and privileges on permanent residents of J and K with respect to - (MPSC 2019) Find the correct options below. (a) Employment under State Government (b) Settlement in the state (c) Acquisition of immovable property (d) Right to Scholarship (e) Right to entry into heritage sites A.  (a), (b), (c), (d), (e)     B. (a), (b), (c), (d)        C. (a), (b), (c)            D. (a), (b) Answers: 1-A, 2-B

 

Source: The Hindu 

 

 

SMALL INDUSTRIES

 

 

1. Context

 

Ministry of Micro, Small & Medium Enterprises (MSME), Government of India organised a one-day awareness Programme for disseminating the information on National SC-ST Hub and other major initiatives of Government of India for MSMEs on 14^th July 2025 at Saheed Laxman Nayak Medical College & Hospital, Odisha. The programme aimed to promote entrepreneurship and employment opportunities in the State of Odisha.

 

2. Micro Small Medium Enterprises (MSME)

 

Small-scale industries account for nearly 95% of all industrial units and are a crucial component of the nation's economic framework. Mahatma Gandhi emphasized the importance of cottage and small-scale industries for India's progress. As reported by the Ministry of Statistics and Programme Implementation (MoSPI), this sector provides employment to approximately 17.5 million people. Consequently, it plays a vital role in job creation. The sector encompasses a wide array of industries, including modern small-scale enterprises, unorganized traditional industries, and organized large and medium-sized businesses

 

Classification of Industries

Classification/ Industry type	Micro	Small	Medium
Investment	Not more than Rs.1 crore	Not more than Rs.10 crore	Not more than Rs.50 crore
Annual Turnover	Not more than Rs. 5 crore	Not more than Rs. 50 crore	Not more than Rs. 250 crore

 

 

3. Role of Small Industries in Indian Economy

 

• Expansion of Entrepreneurial Activities: The innovative approaches adopted by small industries have contributed to the growth of entrepreneurial ventures. This expansion has brought more economic sectors into the fold, offering a broader range of goods and services that cater to both domestic and international markets.
• Industrialization of Rural and Underdeveloped Areas: Small industries have helped reduce regional disparities, promoting a more equitable distribution of wealth and income throughout the nation.
• Employment Creation: Small industries are crucial to India's economic development, as they generate significant employment opportunities at a much lower capital investment compared to large-scale industries

 

Village Small Industries (VSI)   The term "Village and Small Industry (VSI)" is commonly used to refer to unorganized traditional sectors and small-scale industries. The VSI sector is composed of seven sub-sectors: handicrafts, handlooms, Khadi and Village Industries, coir, sericulture, power looms, and small-scale industries

 

 

4. Government Initiatives

 

• Prime Minister’s Employment Generation Programme (PMEGP): The aim of this program is to create employment opportunities by establishing new micro-enterprises, projects, and self-employment initiatives across rural and urban areas of the country. The Khadi and Village Industries Commission (KVIC) serves as the national nodal agency responsible for implementing the scheme, while its execution at the state level is managed by State KVIC offices, State Khadi and Village Industries Boards (KVIB), District Industries Centres (DIC), Coir Board (for coir-related activities), and Banks.
• Collateral-Free Credit Provision for MSMEs: Banks and other financial institutions, including NBFCs, are mandated to provide collateral-free credit to Micro and Small Enterprises. The scheme ensures that up to ₹5 crore (effective from April 1, 2023) per borrowing unit is covered for collateral-free credit facilities (term loans and/or working capital) extended to micro and small enterprises by eligible lending institutions.
• A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship (ASPIRE): The ASPIRE program has been approved for continuation from 2021-2022 to 2025-2026 with a budget allocation of ₹194.87 crore. Updated guidelines issued on January 28, 2022, focus on the following objectives:

1. Reducing unemployment and generating jobs,
2. Promoting an entrepreneurial culture in India,
3. Encouraging innovation to enhance the competitiveness of the MSME sector.

• Entrepreneurship and Skill Development Programmes (ESDP): This program is designed to inspire youth from diverse social backgrounds, including women, SC/ST communities, disabled individuals, ex-servicemen, and those below the poverty line, to consider careers in self-employment or entrepreneurship.
• Scheme of Fund for Regeneration of Traditional Industries (SFURTI): The scheme aims to create competitive, sustainable employment opportunities for traditional industries and artisans by organizing them into clusters. It also seeks to enhance the marketability of products produced by these clusters, upgrade the skills of traditional artisans, provide better tools and equipment, strengthen cluster governance with active stakeholder participation, and foster innovative products, advanced technologies, processes, market intelligence, and new models of public-private partnerships.
• MSME Champions Scheme: This program, set to run from 2021-2022 to 2025-2026, is divided into three components:

1. MSME-Sustainable (ZED) Certification Scheme
2. MSME-Competitive (Lean) Scheme
3. MSME-Innovative (for Incubation, IPR, and Design) Scheme

• Greening MSME: SIDBI has introduced the "Greening MSME" initiative, which offers financial assistance up to a maximum of ₹20 crore to MSMEs for adopting energy-efficient and environmentally sustainable technologies

 

5. Challenges

 

• Access to Finance: Access to funding is a major challenge for Indian MSMEs, with the total financing gap expected to reach $400 billion. While closing this gap will take time, targeted green finance initiatives in areas like waste management, electric vehicles, energy efficiency, and renewables can support MSME growth in these sectors.
• Interest Rates: The Central Government should lower interest rates and make consumer finance, housing loans, and vehicle loans more accessible to stimulate market demand.
• Climate Commitments and Transitioning to Low-Carbon: Small enterprises are limited to adhering to environmental regulations, while global supply chains increasingly shift to greener processes and products. There is currently no strategic plan to help MSMEs manage the risks associated with this transition.
• Unorganized Nature: Due to its fragmented structure and the predominance of micro-sized businesses, the MSME sector is one of the most vulnerable in the Indian economy. The COVID-19 pandemic has highlighted this vulnerability, with millions of MSMEs facing closure due to decreased demand caused by lockdowns.
• Green Transition of MSMEs: MSMEs are more exposed to policy and demand uncertainties, often with greater downside risks. Even if they recognize the benefits of going green, most lack the financial and technical capacity to invest in new initiatives. However, certain government programs can help address these barriers.
• Incentives and Penalties: Encouraging Small and Medium Enterprises (SMEs) to exceed mere compliance can be achieved by taxing negative externalities and offering subsidies or tax breaks for green investments. Updating environmental legislation should also consider the risks posed by different industries, and these policies should be assessed for their impact on MSMEs before widespread implementation

 

6. Way forward

 

MSMEs should embrace best practices like implementing low-energy strategies, adopting renewable energy sources, improving waste management, ensuring women's safety, and making timely wage payments.

Governments, business associations, civil society organizations, and other stakeholders can play a proactive role in promoting awareness, sharing best practices, and providing training and resources. Financial incentives, such as tax breaks, subsidies, grants, and low-interest loans, can be offered by governments and investors to encourage MSMEs to adopt sustainable practices or invest in sustainable technologies.

Larger companies can support MSMEs in adopting sustainable practices by offering training, technical support, and financial assistance

 

 

For Prelims: Current events of national and international importance For Mains: GS III - Indian Economy

 

Previous year Questions 1. Consider the following statements with reference to India: (UPSC 2023) 1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore. 2. All bank loans to the Micro, Small, and Medium Enterprises qualify under the priority sector. 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   2. Which of the following can aid in furthering the Government's objective of inclusive growth? (UPSC 2011) 1. Promoting Self-Help Groups 2. Promoting Micro, Small and Medium Enterprises 3. Implementing the Right to Education Act Select the correct answer using the codes given below: A. 1 only B. 1 and 2 only C. 2 and 3 only D. 1, 2 and 3 Answer: D

 

Source: Indianexpress

 

 

FOSSIL FUELS

 

 

 

 

1. Context

 

India reaches 50% non-fossil fuel power capacity, five years ahead of target. Electricity mix about 38% renewables, 10% hydro and 1.8% nuclear as of June 30, 2025

 

2. About Fossil Fuels

 

Fossil fuels are hydrocarbon-based energy sources derived from the remains of ancient plants and animals buried and subjected to geological processes over millions of years. The three primary types of fossil fuels are coal, oil (petroleum), and natural gas. These fuels have been pivotal in powering the industrialization and development of modern societies, serving as the mainstay for electricity generation, transportation, and numerous industrial processes.

Challenges regarding Fossil Fuels

Despite their widespread use, fossil fuels pose significant challenges:

• The combustion of fossil fuels releases carbon dioxide (CO2) and other greenhouse gases, contributing to global warming and climate change.
• Burning fossil fuels releases pollutants that degrade air quality, leading to respiratory issues and environmental damage.
• Fossil fuels are finite resources, and their extraction raises concerns about depletion and environmental degradation, such as oil spills and coal mining impacts.
• Dependence on fossil fuels, often concentrated in specific regions, raises concerns about geopolitical stability and energy security.

 

Net Zero by 2050

• The concept of achieving net-zero emissions by 2050 involves balancing the amount of greenhouse gases emitted with an equivalent amount removed from the atmosphere.
• This ambitious target aims to mitigate the impacts of climate change and limit global warming to 1.5 degrees Celsius above pre-industrial levels.
• Achieving net-zero emissions requires a transition to renewable energy, energy efficiency, and carbon capture technologies.

 

3. Dubai Consensus

 

The Dubai Consensus, adopted at COP28 in December 2023, represents a significant step forward in the global fight against climate change.

Dubai Consensus and Fossil Fuels

• The Dubai Consensus, a recent agreement, marks a significant departure by formally acknowledging that emissions from fossil fuels play a central role in driving global warming. Contrary to previous agreements that broadly addressed "greenhouse gas emissions," this marks the first explicit acknowledgement since 1995 that fossil fuels, including coal, oil, and gas, are the primary contributors to climate change.
• Despite the acknowledgement of the role of fossil fuels, particularly coal, in global warming, the Dubai Consensus does not signal an imminent end to the era of fossil fuels. Notably, it's crucial to recognize that the agreement falls short of providing specific timelines or commitments to phase out these fuels entirely.
• The Glasgow Climate Conference in 2021 marked a notable shift when countries, for the first time, agreed to address the impact of coal, the fossil fuel with the most substantial global warming footprint. However, the commitment made was to "phase down" coal rather than "phase out," and it lacked a specific termination year.
• The Dubai Consensus, by encompassing all fossil fuels, acknowledges the necessity of eliminating these energy sources to prevent a 1.5-degree Celsius rise in global average temperatures. However, the absence of concrete timelines reflects the challenges posed by varying energy needs and sources among nations.
• Large developing countries like India and China have raised objections to singling out coal, emphasizing its crucial role in lifting populations out of poverty and ensuring energy security. Both countries have substantial coal reserves, with India being a net importer. The consensus brings parity among fossil fuels, recognizing that all need eventual elimination.

 

4. Challenges in the Immediate Replacement of Fossil Fuels

 

The immediate replacement of fossil fuels poses substantial challenges, primarily due to the deeply entrenched and efficient infrastructure supporting the extraction, processing, and distribution of coal, oil, and gas. Over nearly two centuries of industrialization, a sophisticated system has evolved to convert these fossil fuels into electricity, petrol, diesel, and various other combustible products.

• Fossil fuel infrastructure is well-established, encompassing extraction, processing, and distribution networks for coal, oil, and gas.
• Power plants and refineries are optimized for the combustion of fossil fuels, contributing to the reliability and stability of energy supply.
• Fossil fuels offer on-demand availability, providing a consistent and controllable source of energy.
• Natural sources such as solar and wind, while cleaner, face challenges due to intermittency (nighttime for solar, variable wind patterns) and lack of effective energy storage infrastructure.
• Energy storage infrastructure for renewable sources is inadequate to handle the intermittency of solar and wind power, hindering their widespread adoption.
• Developing efficient and scalable energy storage solutions is crucial for transitioning away from fossil fuels.
• National plans, such as India's National Electricity Plan 2022-27, continue to include substantial additions to coal-fired capacity, highlighting the persistent reliance on fossil fuels.
• The infrastructure and investment in new coal-fired power plants reflect the ongoing challenges in immediately replacing fossil fuels.
• The Dubai Consensus acknowledges the necessity of transitioning away from fossil fuels but suggests the potential role of "transition fuels" to facilitate the process while ensuring energy security.
• While the consensus does not define these fuels, natural gas is considered a contender due to its lower emissions compared to coal. However, concerns exist regarding methane emissions associated with natural gas production.
• The COP deliberations face challenges due to the substantial presence of oil and gas manufacturers. Hosting a climate summit in a petro-state adds complexity to addressing the transition from fossil fuels.
• Natural gas, often considered a transition fuel, has advantages in reducing emissions when producing electricity and providing heat. However, criticisms argue that framing natural gas in this context may disproportionately benefit countries with existing production and distribution capabilities.

 

 

5. Dubai Consensus on Methane Emissions

 

• The Dubai Consensus underscores the critical importance of addressing methane emissions, recognizing methane as a potent greenhouse gas with significantly higher heat-trapping capabilities than carbon dioxide. The consensus acknowledges that substantial and accelerated reductions in non-carbon-dioxide emissions, particularly methane emissions, are essential to limit global warming and prevent average temperatures from exceeding a 1.5-degree Celsius increase by the end of the century.
• The agreement emphasizes the need for urgent action, setting a target for humanity to significantly reduce methane emissions by the year 2030. It aligns with the Global Methane Pledge, signed by nearly 150 countries at the COP-27 summit held in Egypt the previous year. The pledge commits countries to cut methane emissions by 30% of 2020 levels by the end of this decade.
• China and the United States, two major global players, have taken specific steps to address industrial methane emissions resulting from natural gas production. This collaborative effort signifies a shared commitment to tackling a significant source of methane release and contributing to the global reduction target.
• India, while resisting external pressure to cut methane emissions, has outlined plans to enhance the efficiency of its energy production processes. The nation contends that a substantial portion of its methane emissions originates from the agricultural sector. Despite resistance, India's commitment to making energy production more efficient aligns with the broader goal of reducing greenhouse gas emissions.

 

 

6. The Way Forward

 

 

Fossil fuels have played a pivotal role in shaping modern societies, their challenges have spurred global efforts, including the pursuit of net-zero emissions and the recognition of their impact in agreements like the Dubai Consensus. The transition to cleaner energy sources and international collaboration are critical components of addressing the environmental and economic concerns associated with fossil fuel use.

 

 

 

For Prelims: Fossil Fuels, Cop 28, Net zero emission, air pollution, Dubai Consensus, Global Methane Pladge, India's National Energy Plan, climate change For Mains:  1. Discuss the challenges and opportunities associated with transitioning away from fossil fuels to achieve net-zero emissions by 2050. (250 Words) 2. Discuss the potential economic benefits of transitioning to a green economy. How can this transition create new jobs and opportunities?  (250 Words)

 

 

Previous Year Questions   1. The UN Framework Convention on Climate Change (UNFCCC) has announced which country to host the 28th Conference of the Parties (COP28) in 2023? (SSC CGL 2023)  A. UAE       B. US          C. UK            D. Russia   2. The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty drawn at (UPSC 2010) A. United Nations Conference on the Human Environment, Stockholm, 1972 B. UN Conference on Environment and Development, Rio de Janeiro, 1992 C. World Summit on Sustainable Development, Johannesburg, 2002 D. UN Climate Change Conference Copenhagen, 2009   3. UNFCCC (United Nations Framework Convention on Climate Change) entered into from - (Sr. Teacher Gr II NON-TSP G.K. 2018) A. 21 March 1994       B. 5 June 1992           C.  12 May 1991         D. 5 June 1993   4. The 'Paris Agreement' adopted in Conference of the Parties (COP 21) in December 2015 will be effective provided the document is signed by: (UPSC CAPF 2016)  A. 51 UNFCCC parties accounting for at least 51% of global greenhouse gas emission B. 51 UNFCCC parties accounting for at least 55% of global greenhouse gas emission C. 55 UNFCCC parties accounting for at least 55% of global greenhouse gas emission D. 75 UNFCCC parties accounting for at least 51% of global greeenhouse gas emission    5. The term ‘Intended Nationally Determined Contributions’ is sometimes seen in the news in the context of (UPSC 2016) (a) pledges made by the European countries to rehabilitate refugees from the war-affected Middle East (b) plan of action outlined by the countries of the world to combat climate change (c) capital contributed by the member countries in the establishment of Asian Infrastructure Investment Bank (d) plan of action outlined by the countries of the world regarding Sustainable Development Goals   6. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016) The Agreement was signed by all the member countries of the UN and it will go into effect in 2017. The Agreement aims to limit the greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels. Developed countries acknowledged their historical responsibility in global warming and committed to donate $1000 billion a year from 2020 to help developing countries to cope with climate change. Select the correct answer using the code given below. (a) 1 and 3 only       (b) 2 only           (c) 2 and 3 only              (d) 1, 2 and 3   7. Consider the following statements with reference to Organisation for Economic Co-operation and Development (OECD): (RBI Grade B 2022) 1. OECD is an official Permanent observer to the United Nations and is referred to as a think-tank or as a monitoring group. 2. India is not a member of OECD. 3. OECD is funded by its member countries. Which of the statement given above is/ are correct? A.1 only    B.1 and 2 only         C.2 and 3 only          D.1, 2 and 3             E.2 only Answer: D 8. Which one of the following is associated with the issue of control and phasing out of the use of ozone-depleting substance? (UPSC CSE 2015) A.Bretton woods conference B. Montreal Protocol C. Kyoto Protocol D. Nagoya Protocol   Answer: B   9. Headquarters of the World Meteorological Organization is located in (NDA  2017) A. Washington B. Geneva C. Moscow D. London   Answer: B   10. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016) 1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017 2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels. 3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change. Select the correct answer using the code given below: A. 1 and 3 only   B. 2 only      C. 2 and 3 only    D.  1, 2 and 3   Answer: B   11. A new type of El Nino called El Nino Modoki appeared in the news. In this context, consider the following statements: (UPSC 2010)  1. Normal El Nino forms in the Central Pacific ocean whereas El Nino Modoki forms in the Eastern Pacific ocean. 2. Normal El Nino results in diminished hurricanes in the Atlantic ocean but El Nino Modoki results in a greater number of hurricanes with greater frequency. 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   12. La Nina is suspected to have caused recent floods in Australia. How is La Nina different from El Nino? (UPSC 2011)  1. La Nina is characterized by unusually cold ocean temperature in the equatorial Indian Ocean whereas El Nino is characterized by unusually warm ocean temperature in the equatorial Pacific Ocean. 2. El Nino has an adverse effect on the south-west monsoon of India, but La Nina has no effect on the monsoon climate. 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   13. Consider the following statements:  (MPSC 2017) a. La Nina is a little girl. b. During the time of La Nina cold water in the ocean rises to the surface. c. La Nina strengthens the Indian monsoon. d. During the time of El Nino, trade winds weaken, and warm water moves east in the ocean. Which of the above statements is/are correct?  A. Only a and b          B. a, b and c         C. Only b and c           D. All of the above   Answer: D   14. Which of the following statements regarding 'Green Climate Fund' is/are correct? (UPSC 2015) 1. It is intended to assist the developing countries in adaptation and mitigation practices to counter climate change. 2. It is founded under the aegis of UNEP, OECS, Asian Development Bank and World Bank. 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   15. In the context of any country, which one of the following would be considered as part of its social capital? (UPSC 2019) A. The proportion of literature in the population B. The stock of its buildings, other infrastructure and machines C. The size of population in the working age group D. The level of mutual trust and harmony in the society Answer: D   16. The International Development Asso­ciation, a lending agency, is adminis­tered by the (UPSC 2010) A. International Bank for Reconstruc­tion and Development B. International Fund for Development C. United Nations Development Programme. D. United Nations Industrial Development Organization Answer: A   Answers: 1-A, 2-B, 3-A, 4-C, 5-B, 6-B, 7-D, 8-B, 9-B, 10-B, 11-B, 12-D, 13-D, 14-A, 15-D, 16-A   Mains 1. Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC 2021)

 

Source: The Hindu