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DAILY CURRENT AFFAIRS, 31 OCTOBER 2025

STUBBLE BURNING

1. Context

Farmers across Punjab are seething over the registration of police cases against them for burning paddy stubble, terming the action as “unfair targeting” and asserting that the act is driven by compulsion rather than choice.

2. What is Stubble?

Stubble refers to the leftover plant material, mainly crop residues, that remains in the field after the primary crop has been harvested. This includes the stems, leaves, and other organic material that is left behind.

Stubble burning is a common agricultural practice where farmers set fire to crop residues, such as straw and stubble, that remain in the field after the main crop (usually paddy or wheat) has been harvested. This practice is typically used as a quick and cost-effective method to clear the field for the next planting season. Stubble burning is particularly prevalent in regions with mechanized farming, where machines like combine harvesters leave behind a significant amount of crop residues.

3. Stubble burning contributes to air pollution

When stubble is burned, it releases a variety of pollutants into the air, including particulate matter, carbon monoxide, nitrogen oxides, and sulfur dioxide. These pollutants can cause several health problems, including respiratory problems, heart disease, and cancer.

Stubble burning is a major contributor to air pollution in many parts of the world. In India, for example, stubble burning is responsible for up to 30% of the air pollution in Delhi during the winter months.

  • Stubble burning generates fine particulate matter (PM2.5 and PM10) that can penetrate deep into the respiratory system, leading to respiratory problems and reduced air quality.
  • The combustion of stubble releases carbon monoxide, which can have adverse health effects when inhaled, particularly in enclosed spaces.
  • Stubble burning produces Volatile Organic Compounds (VOCs), which can react with other pollutants in the atmosphere, contributing to the formation of ground-level ozone, a major air pollutant.
  • Burning stubble emits greenhouse gases like carbon dioxide (CO2) and methane (CH4), contributing to climate change.
  • The combustion of crop residues can release various hazardous chemicals and pollutants, further deteriorating air quality.

4. About the Central Scheme for the Promotion of Agricultural Mechanisation for In-Situ Management of Crop Residue

The Central Scheme on Promotion of Agricultural Mechanisation for In-Situ Management of Crop Residue (AMICMR) is a scheme launched by the Government of India to promote the use of in-situ techniques for managing crop residue. In-situ techniques are those that are used to manage crop residue on the field, rather than burning it. Examples of in-situ techniques include:

  • Mulching is the practice of covering the soil with a layer of organic material, such as straw or leaves. This can help to suppress weeds, retain moisture, and improve soil health.
  • Zero tillage is the practice of planting crops without tilling the soil. This can help to prevent soil erosion and retain moisture in the soil.
  • Direct seeding is the practice of planting seeds directly into the soil, rather than transplanting seedlings. This can help to reduce soil disturbance and prevent the spread of weeds.

The AMICMR scheme provides financial assistance to farmers to purchase machinery that can be used for in-situ management of crop residue. The scheme also provides training and extension services to farmers on how to use these techniques.

The AMICMR scheme is a promising initiative that could help to reduce air pollution caused by stubble burning. However, the scheme needs to be scaled up and made more widely available to farmers to have a significant impact.

5. Conclusion

Stubble burning is a major contributor to air pollution in many parts of the world. However, there are several alternatives to stubble burning, such as in-situ management of crop residue. In-situ management of crop residue is a more sustainable way to manage stubble, as it does not release pollutants into the air and has several benefits for soil health and crop yields.

For Prelims: Stubble burning, air pollution, particulate matter, carbon monoxide, nitrogen oxides, sulfur dioxide, PM2.5, PM10, Volatile Organic Compounds, ozone, carbon dioxide, methane, Climate Change, The Central Scheme on Promotion of Agricultural Mechanisation for In-Situ Management of Crop Residue
For Mains: 
1. Critically evaluate the effectiveness of the Central Scheme on Promotion of Agricultural Mechanisation for In-Situ Management of Crop Residue (AMICMR) in addressing the issue of stubble burning in India. (250 Words)
 
 

Previous Year Questions

1. In the cities of our country, which among the following atmospheric gases are normally considered in calculating the value of Air Quality Index? ( UPSC 2016)

  1. Carbon dioxide
  2. Carbon monoxide
  3. Nitrogen dioxide
  4. Sulfur dioxide
  5. Methane

Select the correct answer using the code given below:

(a) 1, 2 and 3 only    (b) 2, 3 and 4 only     (c) 1, 4 and 5 only         (d) 1, 2, 3, 4 and 5

 Answer: B

2. Acid rain is caused by the pollution of the environment (UPSC 2013, 2022)

(a) Carbon Dioxide and Nitrogen

(b) Carbon Monoxide and Carbon Dioxide

(c) Ozone and Carbon Dioxide

(d) Nitrous Oxide and Sulphur Dioxide

 Answer:D

3. Biological Oxygen Demand (BOD) is a standard criterion for (UPSC 2017)

(a) Measuring oxygen level in blood

(b) Computing oxygen levels in forest ecosystems

(c) Pollution assay in aquatic ecosystem

(d) Assessing oxygen levels in high-altitude regions

Answer: C

4. Consider the following: (UPSC 2019) 

1. Carbon monooxide
2. Methane
3. Ozone
4. Sulphur dioxide

Which of the above are released into atmosphere due to the burning of crop/biomass residue? 

A. 1 and 2 only         B.  2, 3 and 4 only            C. 1 and 4 only         D.  1, 2, 3 and 4

Answer: D

5. What is Particulate matter? (BPSC 2016)

A. Solid residue      B. Air pollutant        C. Water pollutant   D. Soil pollutant

E.  None of the above/More than one of the above

Answer: B

6. Carbon monoxide is a poisonous gas because it: (OPSC OAS 2021)

A. Binds to digestive hormones
B. Damages lungs
C. Destroys RBCs
D. Binds to haemoglobin

Answer: D

7. Consider the following statements: (UPSC 2019)

1. Agricultural soils release nitrogen oxides into environment.
2. Cattle release ammonia into environment.
3. Poultry industry releases reactive nitrogen compounds into environment.

Which of the statements given above is/are correct?

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

Answer: D

8. In the context of WHO Air Quality Guidelines, consider the following statements: (UPSC 2022) 

1. The 24-hour mean of PM2.5 should not exceed 15 μg/m³ and annual mean of PM2.5 should not exceed 5 μg/m³.
2. In a year, the highest levels of ozone pollution occur during the periods of inclement weather.
3. PM10 can penetrate the lung barrier and enter the bloodstream. 4. Excessive ozone in the air can trigger asthma.

Which of the statements given above are correct?

A. 1, 3 and 4             B. 1 and 4 only           C. 2, 3 and 4           D.1 and 2 only

Answer: B

9. Which of the following is a VOC? (MP Vyapam Sub Engineer Mechanical 2022)

A. Toulene        B. Water       C. Carbon dioxide         D. Carbon monoxide

Answer: A

10. Which of the following Volatile Organic Compounds (VOCs) are emitted from anthropogenic sources only? (UGC NET 2023)

A. Isoprene       
B. Benzene           
C. Terpene         
D. Methane       
E. Toluene

1. A, B and C Only         2.  B and E Only      3. A and C Only         4. C, D and E Only Answer: 2

11. Which one of the following is associated with the issue of control and phasing out of the use of ozone-depleting substance? (UPSC 2015) 

A. Bretton Woods Conference  B. Montreal Protocol  C. Kyoto Porotocol  D. Nagoya Protocol

Answer: B

12. The increasing amount of carbon dioxide in the air is slowly raising the temperature of the atmosphere, because it absorbs (UPSC 2012) 

A. the water vapour of the air and retains its heat
B. the ultraviolet part of the solar radiation
C. all the solar radiations
D. the infrared part of the solar radiation

Answer: D

13. Which of the following adds/add carbon dioxide to the carbon cycle on the planet Earth? (UPSC 2014)

1. Volcanic action
2. Respiration
3. Photosynthesis
4. The decay of organic matter

Select the correct answer using the code given below

A. 1 and 3 only       B. 2 only      C. 1, 2 and 4 only         D. 1, 2, 3 and 4

Answer: C

14. Which of the following statements are correct about the deposits of 'methane hydrate'? (UPSC 2019) 

1. Global warming might trigger the release of methane gas from these deposits.
2. Large deposits of 'methane hydrate' are found in Arctic Tundra and under the seafloor.
3. Methane in atmosphere oxidizes to carbon dioxide after a decade or two.

Select the correct answer using the code given below:

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

Answer: D

15. With reference to two non-conventional energy sources called 'coalbed methane' and 'shale gas' consider the following statements: (UPSC 2014)

1. Coalbed methane is the pure methane gas extracted from coal seams, while shale gas is a mixture of propane and butane only that can be extracted from fine-grained sedimentary rocks. 2. In India, abundant coalbed methane sources exist, but so far no shale gas sources have been found.

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

Mains
1. Describe the key points of the revised Global Air Quality Guidelines (AQGs) recently released by the World Health Organisation (WHO). How are these different from its last update in 2005? What changes in India’s National Clean Air Programme are required to achieve revised standards? ( UPSC 2021)
 
Source: Indianexpress
 
 

NATIONAL GREEN TRIBUNAL

 

1. Context

Defending the Great Nicobar Island mega-infrastructure project at the National Green Tribunal (NGT) on Thursday, the Union government argued that it was fully aware of the project’s likely impact on the biodiversity of the surrounding areas, positing that the main issue was whether the government was “alive to this or not”.

2. What is National Green Tribunal (NGT)?

  • The National Green Tribunal (NGT) is a specialized judicial body established in India to handle cases related to environmental protection and conservation.
  • It was established under the National Green Tribunal Act, of  2010, and its primary objective is to effectively and expeditiously address environmental disputes and promote sustainable development.
  • With the establishment of the NGT, India became the third country in the world to set up a specialized environmental tribunal, only after Australia and New Zealand, and the first developing country to do so.
     
  • NGT is mandated to make disposal of applications or appeals finally within 6 months of the filing of the same.
  • The NGT has five places of sittings, New Delhi is the Principal place of sitting, and Bhopal, Pune, Kolkata and Chennai are the other four.

3. Structure of the National Green Tribunal (NGT)

  • Chairperson: The NGT is headed by a full-time Chairperson who is a retired judge of the Supreme Court of India. The Chairperson is responsible for the overall administration and functioning of the tribunal.
  • Judicial Members: The NGT consists of judicial members who are retired judges of either the Supreme Court or a High Court. These members have extensive legal knowledge and experience in handling environmental matters.
  • Expert Members: The tribunal also includes expert members who possess expertise in areas such as environmental science, ecology, hydrology, and forestry. These members provide valuable technical insights and guidance in the resolution of environmental disputes.
  • The NGT is organized into multiple benches located across different regions of India. These benches are responsible for hearing cases specific to their respective jurisdictions. Each bench is headed by a judicial member and consists of one or more expert members, as required.

4. What are the Important Landmark Judgements of NGT?

The National Green Tribunal (NGT) has delivered several landmark judgments that have had a significant impact on environmental protection and conservation in India. Here are some of the important landmark judgments delivered by the NGT:

  • Vardhaman Kaushik v. Union of India (2013): This case dealt with the issue of groundwater depletion due to illegal extraction by industries in Uttar Pradesh. The NGT directed the closure of industries that were extracting groundwater without proper permissions and ordered the payment of compensation for environmental damage caused.
  • Alembic Pharmaceuticals Ltd. v. Rohit Prajapati & Ors. (2014): In this case, the NGT ordered the closure of an industrial unit in Gujarat for releasing untreated effluents into a water body, causing pollution and harm to the environment and public health.
  • M.C. Mehta v. Union of India (2014): The NGT issued a landmark judgment in this case regarding the pollution of the Yamuna River. It directed several measures to clean and rejuvenate the river, including the establishment of sewage treatment plants and the regulation of industries contributing to pollution.
  • Subhash Chandra Sharma v. Union of India (2015): This case focused on the issue of air pollution caused by solid waste burning in open areas. The NGT imposed a ban on burning waste in open spaces and directed municipal authorities to take measures to manage waste effectively.
  • Raghu Nath Sharma v. State of Himachal Pradesh (2016): The NGT ordered the closure of illegal hotels and structures in the eco-sensitive Rohtang Pass area of Himachal Pradesh to protect the fragile Himalayan ecosystem.
  • Yamuna Muktikaran Abhiyan v. Union of India (2017): This case dealt with the rejuvenation of the Yamuna River and led to the NGT issuing directions to clean and restore the river, including measures to prevent encroachments and pollution.
  • M.C. Mehta v. Union of India (2017): The NGT banned the use of disposable plastic in Delhi and the National Capital Region (NCR) and directed authorities to take steps to prevent the use and sale of such plastic.
  • Shailesh Singh v. Hotel Holiday Regency (2019): In this case, the NGT imposed heavy fines on a hotel in Shimla, Himachal Pradesh, for causing air pollution by running diesel generators without proper emission control measures.
  • Subhash Chandran vs. Tamil Nadu Pollution Control Board (2020): This judgment highlighted the importance of safeguarding coastal areas and wetlands from unauthorized construction and development activities, emphasizing the need for stringent environmental norms.
  • In Re: Report by Comptroller and Auditor General of India (2021): The NGT directed the formulation of guidelines for the regulation of groundwater extraction and management to prevent overexploitation and depletion.

5. What is a dissolved oxygen level?

  • Dissolved oxygen (DO) level refers to the concentration of oxygen gas (O2) that is dissolved in a liquid, typically water.
  • It is a crucial parameter in aquatic ecosystems as it directly affects the survival and well-being of aquatic organisms.
  • In natural water bodies like lakes, rivers, and oceans, oxygen dissolves from the atmosphere through processes such as diffusion and aeration.
  • Aquatic plants, algae, and phytoplankton also contribute to the production of oxygen through photosynthesis. However, the level of dissolved oxygen can fluctuate based on various factors, including temperature, altitude, water flow, pollution, and organic matter decomposition.
  • Dissolved oxygen is essential for aquatic organisms because they rely on it for their respiration process, similar to how animals breathe oxygen from the air.
  • Insufficient levels of dissolved oxygen can lead to hypoxia, a condition where organisms are deprived of the oxygen they need to survive. This can result in stress, reduced growth, reproductive issues, and even mortality in aquatic species.

Different species of aquatic organisms have varying tolerance levels for dissolved oxygen. For example:

  • Fish and other aquatic animals often require dissolved oxygen levels between 4 to 6 milligrams per liter (mg/L) to thrive.
  • Some species of fish, insects, and other aquatic organisms can tolerate lower levels of dissolved oxygen, even below 2 mg/L, while others require higher concentrations.

6. What are chemical oxygen demand and biological oxygen demand?

Chemical Oxygen Demand (COD):

  • COD is a measure of the amount of oxygen required to chemically oxidize and break down organic and inorganic substances present in water.
  • It provides an indication of the total amount of pollutants that can be chemically oxidized by a strong oxidizing agent. COD is expressed in milligrams per liter (mg/L) of oxygen consumed.
  • COD is useful in assessing the overall pollution load in a water sample, including both biodegradable and non-biodegradable substances.
  • It is commonly used for industrial wastewater monitoring, as it provides a rapid estimation of the organic content and potential pollution levels. However, COD does not differentiate between different types of pollutants or indicate the potential impact on aquatic life.

Biological Oxygen Demand (BOD):

  • BOD measures the amount of dissolved oxygen consumed by microorganisms (bacteria) during the biological degradation of organic matter in water.
  • It is a key indicator of the level of biodegradable organic pollutants present in water. BOD is expressed in milligrams per liter (mg/L) of oxygen consumed over a specific time period, usually 5 days (BODâ‚…).
  • BOD is particularly important in assessing the impact of organic pollution on aquatic ecosystems.
  • High BOD levels indicate that a water body may have a significant amount of organic pollutants, which can lead to oxygen depletion as microorganisms break down the organic matter. This oxygen depletion, known as hypoxia, can harm aquatic organisms and disrupt the ecological balance of the water body.

Comparing BOD and COD:

  • BOD primarily measures the biologically degradable organic matter and provides information about the potential impact on aquatic life.
  • COD measures both biologically and chemically degradable pollutants, giving an indication of the overall pollution load and oxygen demand.
  • BOD is a more specific and ecologically relevant parameter, but it takes longer to determine (5 days), while COD can be measured more quickly.
For Prelims: National Green Tribunal (NGT), National Green Tribunal Act, of  2010, Dissolved oxygen (DO), Chemical Oxygen demand (COD), and Biological Oxygen Demand (BOD).
For Mains: 1. Discuss the significance of Chemical Oxygen Demand (COD) and Biological Oxygen Demand (BOD) as critical indicators for assessing water pollution and quality. (250 Words)
 

Previous year Question

1. How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)? (UPSC 2018)
1. The NGT has been established by an Act whereas the CPCB has been created by the executive order of the Government.
2. The NGT provides environmental justice and helps reduce the burden of litigation in the higher courts whereas the CPCB promotes cleanliness of streams and wells, and aims to improve the quality of air in the country.
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. The National Green Tribunal Act, 2010 was enacted in consonance with which of the following provisions of the Constitution of India? (UPSC 2012)
1. Right of a healthy environment, construed as a part of the Right to life under Article 21
2. Provision of grants for raising the level of administration in the Scheduled Areas for the welfare of Scheduled Tribes under Article 275(1)
3. Powers and functions of Gram Sabha as mentioned under Article 243(A)
Select the correct answer using the codes given below:
A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: A
Source: The Indian Express
 

NON BANKING FINANCIAL COMPANIES (NBFC)

 
 
 
1. Context
 
At a time when India’s net foreign direct investment has seen a sharp moderation, the country’s financial landscape is in the midst of a transformation. Over the last 24 months, some of the world’s biggest financial institutions — from Dubai’s Emirates NBD to Japan’s Sumitomo Mitsui Banking Corporation (SMBC), Blackstone, Zurich Insurance and Abu Dhabi’s International Holding Company (IHC) — have lined up to acquire significant stakes in Indian banks, insurers and non-banking financial companies (NBFCs)
 
2. What are the non-banking financial companies (NBFCs)?
 
  • Non-Banking Financial Companies (NBFCs) are financial institutions that provide banking services but do not hold a banking license.
  • They are crucial to the financial system as they cater to the financial needs of sectors where traditional banks may not reach or provide services.
  • NBFCs offer various financial services such as loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority, leasing, hire-purchase, insurance business, chit business, etc.
  • They differ from traditional banks because they cannot accept demand deposits and do not form part of the payment and settlement system like banks do.
  • However, they play a significant role in providing credit to individuals, small businesses, and the unorganised sector, thereby contributing to financial inclusion and economic growth. Examples of NBFCs include companies engaged in equipment leasing, hire-purchase finance, vehicle finance, and microfinance

3. Classification of NBFCs

NBFCs can be classified into various categories based on their activities, ownership structure, and regulatory requirements.

Here are some common classifications:

  • Asset Financing NBFCs: These NBFCs primarily provide financing for the purchase of assets such as vehicles, machinery, equipment, etc.

  • Investment and Credit NBFCs: These NBFCs primarily make investments in securities or extend credit facilities.

  • Infrastructure Finance Companies (IFCs): These NBFCs focus on financing infrastructure projects such as roads, ports, power, telecommunications, etc.

  • Housing Finance Companies (HFCs): These NBFCs specialize in providing finance for housing and related activities.

  • Microfinance Institutions (MFIs): These NBFCs provide financial services, including small loans, savings, and insurance, to low-income individuals and microenterprises.

  • Non-Deposit Taking NBFCs: These NBFCs do not accept deposits from the public. They rely on other sources of funding such as borrowings from banks, financial institutions, and capital markets.

  • Deposit Taking NBFCs: These NBFCs accept deposits from the public and are regulated more closely, similar to banks, to ensure the safety of depositor funds.

  • Systemically Important NBFCs (SI-NBFCs): These are NBFCs whose failure could potentially disrupt the financial system. They are subject to additional regulatory requirements to mitigate systemic risks.

  • Core Investment Companies (CICs): These NBFCs are primarily engaged in the business of acquisition of shares and securities and hold not less than 90% of its Total Assets in the form of investment in equity shares, preference shares, bonds, debentures, debt, or loans in group companies.

  • Infrastructure Debt Funds (IDFs): These NBFCs are set up to facilitate the flow of long-term debt into infrastructure projects.

4. What is the 50-50 Criteria of Principal Business?
 
  • The 50-50 criteria of principal business refers to a regulatory guideline set by the Reserve Bank of India (RBI) for determining whether a company's principal business is that of a Non-Banking Financial Company (NBFC).
  • According to this criterion, if more than 50% of a company's total assets or gross income comes from financial assets or income derived from financial assets, it is considered to be primarily engaged in the business of an NBFC. In other words, if at least 50% of the company's assets or income is from financial activities, it falls under the purview of NBFC regulations.
  • This guideline helps to differentiate between companies engaged primarily in non-financial activities with some incidental financial activities and those whose main business revolves around financial services, thereby ensuring appropriate regulation and supervision of NBFCs by the RBI. It is an important criterion used by regulators to determine the regulatory classification of companies operating in the financial sector

5.RBI rules on Non Banking Financial Companies

The Reserve Bank of India (RBI) regulates Non-Banking Financial Companies (NBFCs) in India to ensure financial stability, consumer protection, and the smooth functioning of the financial system.
 
Some of the key rules and regulations imposed by the RBI on NBFCs include:
  • NBFCs need to obtain a Certificate of Registration (CoR) from the RBI to commence or carry on the business of non-banking financial institution.
  • RBI imposes prudential regulations on NBFCs to ensure the safety and soundness of their operations. These norms cover aspects such as capital adequacy, income recognition, asset classification, provisioning, liquidity management, and exposure limits.
  • NBFCs are required to adhere to a Fair Practices Code (FPC) prescribed by the RBI, which outlines the principles of transparency, fairness, and responsible lending practices.
  • NBFCs are mandated to follow KYC norms while onboarding customers, including verification of identity, address, and other relevant information, to prevent money laundering and terrorist financing activities
  • NBFCs are required to implement effective AML/CFT measures, including customer due diligence, transaction monitoring, and reporting of suspicious transactions, to mitigate the risks of money laundering and terrorist financing.
  • RBI mandates NBFCs to adhere to good corporate governance practices, including the composition of the board of directors, risk management framework, internal controls, and disclosure requirements
  •  NBFCs are required to have robust risk management systems in place to identify, assess, monitor, and mitigate various risks such as credit risk, market risk, liquidity risk, and operational risk.
  • NBFCs need to submit various regulatory returns and reports to the RBI periodically, providing details of their financial performance, capital adequacy, asset quality, and compliance with regulatory requirements.
  • RBI conducts regular inspections and supervisory reviews of NBFCs to assess their financial health, compliance with regulations, and adherence to best practices.
  • RBI has the authority to issue directions, impose restrictions, and take corrective actions against NBFCs that fail to comply with regulatory requirements or pose risks to the financial system.
 
6. Way Forward
Non-Banking Financial Companies (NBFCs) play a vital role in India's financial landscape, serving as critical intermediaries between traditional banking institutions and underserved segments of the economy. With their diverse range of financial services and flexible approach to lending, NBFCs contribute significantly to promoting financial inclusion, fostering entrepreneurship, and driving economic growth. However, the regulatory framework governing NBFCs remains paramount in ensuring the stability and integrity of the financial system. As the sector continues to evolve and face new challenges, effective regulation, prudent risk management, and adherence to best practices will be essential for NBFCs to sustain their growth trajectory and fulfill their socio-economic mandate in a responsible and sustainable manner
 
 
For Prelims: Economy
For Mains: GS-III: Indian Economy and issues relating to planning, mobilisation, of resources, growth, development, and employment.
 
 

Previous Year Questions

1.The RBI acts as a bankers’ bank. This would imply which of the following? (UPSC CSE 2012)

1. Other banks retain their deposits with the RBI.

2. The RBI lends funds to the commercial banks in times of need.

3. The RBI advises the commercial banks on monetary matters.

Select the correct answer using the codes given below :

(a) 2 and 3 only

(b) 1 and 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer (d)

The central bank, also known as the apex bank, has overarching control over a nation's banking system. It holds the exclusive authority for issuing currency and regulates the money supply within the economy. As outlined in the Reserve Bank of India Act, 1934, the central bank fulfills several key functions:

  • Banking functions: Acting as the banker, agent, and advisor to both the central and state governments, the Reserve Bank handles all banking operations for these entities. It extends advisory services to the government on economic and monetary policy matters and manages the public debt. Furthermore, it functions similarly to a commercial bank for other banks, including providing loans to all commercial banks nationwide.

  • Supervisory functions: The central bank supervises and monitors other banks and governmental entities, guiding them through various economic conditions, especially during periods of inflation or deflation.

  • Promotional functions: In addition to its regulatory role, the central bank undertakes promotional activities such as fostering connections with global economies and managing foreign reserves. These efforts contribute to representing the country's economy on the international stage.

  • Advisory functions: Offering guidance on monetary issues to commercial banks is another essential role of the central bank, ensuring effective monetary policy implementation.

2.With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements: (UPSC CSE 2010)
  1. They cannot engage in the acquisition of securities issued by the government.
  2. They cannot accept demand deposits like Savings Account.

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: They cannot engage in the acquisition of securities issued by the government. This statement is False. NBFCs can invest in government securities like bonds.
  • Statement 2: They cannot accept demand deposits like Savings Account. This statement is True. NBFCs are unlike banks and cannot accept demand deposits that are withdrawable on demand. They can only accept fixed deposits with a predetermined maturity period
Source: Indianexpress
 
 

SARDAR VALLABHAI PATEL

 
1. Context
 
On National Unity Day (October 31) let's reflect on the contribution of Sardar Vallabhbhai Patel in shaping modern India. Also, don't miss to check some of his inspiring quotes.
 
 
2. Sardar Vallabhai Patel
 
  • Vallabhbhai Jhaverbhai Patel, widely recognized as Sardar Patel, served as India’s first Deputy Prime Minister and Home Minister. A barrister and prominent statesman, he was a key leader in the Indian National Congress and made a major impact on India’s fight for independence from British rule.
  • Born on October 31, 1875, and raised in Gujarat, Patel used his legal expertise to support numerous farmers through peaceful civil disobedience movements in Kheda, Bardoli, and Borsad. Over time, he emerged as one of Gujarat’s most influential figures. Later, he actively promoted the Quit India Movement and remains a lasting inspiration
  • Sardar Vallabhbhai Patel was a pivotal leader in India’s struggle for independence and a driving force behind the nation’s unification post-independence. Known as the “Iron Man of India,” Patel’s leadership in integrating over 500 princely states into a single, unified India earned him lasting respect. As India’s first Deputy Prime Minister and Home Minister, Patel was instrumental in strengthening the country’s administrative foundations.
3. Sardar Vallabhai Patel Contributions
 
  • As independent India’s first Home Minister, Sardar Vallabhbhai Patel was instrumental in uniting and shaping the country. At independence, the British had complicated matters by granting the princely states autonomy under the Indian Independence Act of 1947. This act established the separate dominions of India and Pakistan, setting the stage for the formation of Pakistan.
  • The issue of integrating the princely states posed significant challenges, as these rulers, often seen as indulgent and inefficient, had long been both pampered and politically manipulated by the British.
  • With Britain’s withdrawal, many of these princes viewed it as an opportunity to assert their independence, while others were torn between aligning with India or Pakistan.
  • Through skilled diplomacy, Patel achieved the integration of these princely states within India’s constitutional framework.
  • He employed varied strategies, offering guidance to some, convincing others through negotiation, and even using force when necessary, as with Hyderabad. His political insight and pragmatism proved vital in bringing over 500 princely regions into a united Indian nation
 
In addition to the formidable challenge of uniting India, Sardar Vallabhbhai Patel, known as the "Iron Man of India," was key in strengthening the foundation of the All India Services. He played a significant role in establishing the modern all-India services framework, earning him the title of the “patron saint of India’s civil servants.”
 
4. Contribution to Constitution and Quotes by Sardar Vallabhai Patel
 

Sardar Vallabhbhai Patel made significant contributions to shaping India’s Constitution, emphasizing unity, administrative integrity, and a strong, cohesive governance structure. As the first Deputy Prime Minister and Home Minister, Patel championed the integration of princely states, ensuring that India emerged as a unified country post-independence. His vision helped establish a stable federal system, with clear delineation of powers between the central and state governments, which was crucial to the Constitution's framework. He also strongly advocated for the establishment of the All India Services, which he saw as the "steel frame" that would hold the country together.

Notable Quotes by Sardar Vallabhbhai Patel

  • On Unity:
    "Manpower without unity is not a strength unless it is harmonized and united properly, then it becomes a spiritual power."

  • On Integrity and Nation-Building:
    "Take to the path of dharma—the path of truth and justice. Don't misuse your power. Attempt to serve the people. See that justice is done without any discrimination. Whatever the task at hand, be fair, be just, be honest."

  • On Commitment to Service:
    "Your duty is to serve the people, not to misuse your position for personal gain."

  • On Nationhood:
    "My only desire is that India should be a good producer and no one should be hungry, shedding tears for food in the country."

  • On Unity and Strength:
    "Every Indian should now forget that he is a Rajput, a Sikh, or a Jat. He must remember that he is an Indian."

  • On Freedom and Responsibility:
    "Today we must remove distinctions of high and low, rich and poor, caste or creed."

 
For Prelims: Indian Independence, Partition, World War II, British Empire, Royal Indian Navy, Cabinet Mission, 
For Mains: 
1. Discuss the economic challenges faced by Britain after World War II and how these challenges contributed to the decolonization process. (250 Words)
 
 
Previous Year Questions
 
1. With reference to the Cabinet Mission, which of the following statements is/are correct? (UPSC 2015)
1. It recommended a federal government.
2. It enlarged the powers of the Indian courts.
3. It provided for more Indians in the ICS.
Select the correct answer using the code given below.
A. 1 only    B. 2 and 3    C. 1 and 3     D. None
 
Answer: A
 
2. The Cabinet Mission which visited in 1946 was led by _____.  (Telangana Group 1 2016) 
A. R.J. Moore    B. A.V. Campbell        C. Pethick Lawrence   D.  David Warner
 
Answer: C
 
Source: Indianexpress
 
 

UNITED NATIONS (UN)

 
 
1. Context
 
 Underlining that “victims and perpetrators of terrorism” were being equated “in the name of global strategy”, External Affairs Minister S Jaishankar on Friday targeted Pakistan and China, saying “a sitting Security Council member” was openly protecting the very organisation which claimed responsibility for the Pahalgam terror attack.
 
2. History of UN
 
Countries that had dominated world affairs had suffered a great deal after the two wars, and there were two emerging new powers, in the form of the United States and the USSR, who looked set to rival each other. Born out of the horrors of that period, the UN was primarily tasked with the goal of maintaining world peace and saving future generations from the evils of war
United Nations - Wikipedia
 
3. Origin of UN
  • The UN was born out of the ashes of yet another international organisation created with the intention of keeping war away.
  • The League of Nations was created in June 1919, after World War I, as part of the Treaty of Versailles.
  • However, when the Second World War broke out in 1939, the League closed down and its headquarters in Geneva remained empty throughout the war.
  • Consequently, in August 1941, American President Franklin D. Roosevelt and British Prime Minister Winston Churchill held a secret meeting aboard naval ships in Placenta Bay, located on the southeast coast of Newfoundland, Canada.
  • The heads of the two countries discussed the possibility of creating a body for international peace efforts and a range of issues related to the war.
  • Together they issued a statement that came to be called the Atlantic Charter. It was not a treaty, but only an affirmation that paved the way for the creation of the UN.
  • It declared the realisation of “certain common principles in the national policies of their respective countries on which they based their hopes for a better future for the world.”
  • The United States joined the war in December 1941, and for the first time the term ‘United Nations’ was coined by President Roosevelt to identify those countries which were allied against the axis powers – Germany, Italy and Japan. On January 1, 1942, representatives of 26 allied nations met in Washington DC to sign the declaration of the United Nations, which basically spelt out the war objectives of the Allied powers.
  • India, which was under British colonial rule at the time, was also among these nations
un declaration
4. Achievements and Failures of the UN

The United Nations (UN) has been a prominent international organization since its establishment in 1945. It has made significant achievements and faced challenges and failures throughout its history. Here are some notable achievements and failures of the United Nations:

Achievements:

  1. Preventing World Wars: The UN was established after World War II with the primary aim of maintaining international peace and security. It has successfully prevented another world war on the scale of the two World Wars.

  2. Humanitarian Aid: The UN, through agencies like UNICEF, the World Food Programme (WFP), and UNHCR, provides vital humanitarian aid, including food, shelter, and medical assistance, to people in need around the world.

  3. Peacekeeping Operations: The UN has undertaken numerous peacekeeping missions to help resolve conflicts and maintain peace in various parts of the world, including Cyprus, Lebanon, and Sierra Leone.

  4. Decolonization: The UN played a significant role in decolonization efforts, helping newly independent countries gain international recognition and supporting the end of colonial rule in many parts of the world.

  5. Universal Declaration of Human Rights: The UN adopted the Universal Declaration of Human Rights in 1948, setting forth fundamental human rights and freedoms. This document has been instrumental in shaping international human rights norms.

  6. Development Goals: The UN established the Millennium Development Goals (MDGs) and later the Sustainable Development Goals (SDGs), which have provided a framework for addressing global poverty, inequality, and environmental challenges.

  7. Environmental Protection: The UN has led efforts to address global environmental issues through conventions like the Paris Agreement on climate change, the Convention on Biological Diversity, and the Montreal Protocol on ozone depletion.

  8. Public Health: The World Health Organization (WHO), a UN agency, has played a crucial role in international public health efforts, including vaccination programs, disease control, and pandemic response.

Failures and Challenges:

  1. Ineffectiveness in Preventing Genocides and Mass Atrocities: The UN has faced criticism for its inability to prevent or effectively respond to genocides and mass atrocities, such as those in Rwanda (1994) and Bosnia (1992-1995).

  2. Security Council Deadlocks: The UN Security Council, with its five permanent members (P5), often experiences deadlock due to conflicting national interests, hindering timely and decisive action on critical global issues.

  3. Human Rights Violations by Member States: Some UN member states with poor human rights records have faced limited consequences for their actions, raising concerns about the UN's ability to enforce human rights norms.

  4. Resource Constraints: The UN relies on contributions from member states, and funding shortfalls can hamper its ability to respond to crises effectively.

  5. Lack of Global Consensus: Achieving consensus among 193 member states on complex issues can be extremely challenging, leading to slow progress or gridlock on important matters.

  6. Peacekeeping Failures: Some UN peacekeeping missions have been criticized for not effectively preventing conflicts or abuses by peacekeepers themselves.

  7. Israeli-Palestinian Conflict: The UN has struggled to mediate a lasting peace in the Israeli-Palestinian conflict, which remains unresolved after decades of efforts.

  8. Complex Bureaucracy: The UN's complex bureaucratic structure can lead to inefficiency, redundancy, and lack of coordination in some areas.

5. Way forward
On a more fundamental level, its structure and other organisations associated with it, such as the World Bank and the IMF, have been criticised for furthering neo-liberal ideas – related to championing free markets and a reduced role of governments. This has been linked to deepening inequalities within countries. Further, the UN has been seen as unrepresentative of its members, particularly countries in the Global South
 
Source: indianexpress
 
 

DEFENCE ACQUISITION COUNCIL

 

1. Context

Defence Acquisition Council (DAC) clears proposals, worth about Rs 79,000 crore, to enhance the capability of the Armed Forces
 

2. About the Defence Acquisition Council

The Defence Acquisition Council (DAC) is the apex body for all defence acquisitions in India. It was formed after recommendations made by the Group of Ministers on 'Reforming the National Security System' in 2001, post-Kargil war. The DAC is headed by the Defence Minister and comprises the following members:

  • Chief of the Defence Staff (CDS)
  • Secretary, Department of Defence Production
  • Secretary, Finance
  • Secretary, Defence Research and Development
  • Controller General of Defence Accounts
  • Other senior officers from the Ministry of Defence and the Services

The Role of the Defence Acquisition Council

The DAC's primary role is to:

  • Accord approval for AoN (Acceptance of Necessity) for Capital Acquisition Proposals.
  • Categorise the acquisition proposals into 'Buy, Buy & Make, & Make'.
  • In-principle approval of 15-Year Long-Term Integrated Perspective Plan (LTPP) for Defence Forces.
  • Delegate powers to Services/C&AS for the acquisition of items up to a certain value.
  • Consider and approve other issues as may be referred to it by the Defence Minister.

Functions of the Defence Acquisition Council

The DAC's primary functions are to:

  • Approve capital acquisitions for the Indian Armed Forces.
  • Formulate and implement policies and procedures for defence acquisitions.
  • Monitor the progress of defence acquisitions.
  • Oversee the implementation of the Defence Procurement Procedure (DPP).

Reasons for the creation of the Defence Acquisitions Council 

The DAC was created to address the following shortcomings of the previous defence acquisition system:

  • Lack of a clear and transparent decision-making process.
  • Delays in the procurement of defence equipment.
  • Escalation of costs.
  • Lack of coordination between different agencies involved in the procurement process.

3. About Defence acquisition

Defence acquisition is the process of acquiring goods and services for the Indian Armed Forces. It is a complex and time-consuming process that involves the identification of requirements, the preparation of specifications, the selection of vendors, the negotiation of contracts, and the delivery of equipment. The Indian defence acquisition process is governed by the Defence Procurement Procedure (DPP), which is a set of guidelines that outlines the process for acquiring defence equipment.

The key stages of the defence acquisition process:

  •  The first step is to identify the requirements of the Armed Forces. This is done through a detailed assessment of the operational needs of the Armed Forces and the availability of resources.
  • Once the requirements have been identified, the next step is to prepare the specifications for the equipment to be acquired. The specifications must be clear, detailed, and unambiguous so that the vendors can understand what is required.
  • The next step is to select the vendors who will be invited to participate in the bidding process. The vendors are selected based on their technical ability, financial strength, and experience.
  • Once the vendors have been selected, the next step is to negotiate the contracts. The contracts must be fair and reasonable, and they must protect the interests of the government.
  • The final step is to deliver the equipment to the Armed Forces. Once the equipment has been delivered, it must be tested and accepted by the Armed Forces.

4. The Defence Procurement Procedure (DPP)

The Defence Procurement Procedure (DPP) is the guideline for defence acquisitions in India. The DPP was first introduced in 2006 and has been revised several times since then. The DPP outlines the process for defence acquisitions, from the identification of a requirement to the final acceptance of a product.

The DPP is designed to ensure that defence acquisitions are conducted in a transparent, efficient, and cost-effective manner. The DPP also seeks to promote indigenous defence production and to maximize the involvement of Indian companies in the defence sector.

Key features of the DPP

  • The DPP emphasizes the need for transparency in all stages of the defence acquisition process. This includes publishing all relevant documents online and making them available to the public.
  • The DPP aims to streamline the defence acquisition process and reduce delays. This includes simplifying the tendering process and reducing the number of approvals required.
  • The DPP seeks to ensure that defence acquisitions are conducted cost-effectively. This includes negotiating the best possible price for goods and services and promoting indigenous defence production.
  • The DPP promotes indigenous defence production by giving preference to Indian companies in the tendering process. The DPP also provides incentives for Indian companies to invest in research and development.
  • The DPP seeks to maximize the involvement of Indian companies in the defence sector. This includes encouraging Indian companies to form joint ventures with foreign companies.

5. The Way Forward

The DAC and the DPP play a vital role in ensuring that the Indian Armed Forces are equipped with the latest and best possible weapons and equipment. The DAC and the DPP are also important for promoting indigenous defence production and for maximizing the involvement of Indian companies in the defence sector.

 

For Prelims: Defence Acquisition Council, Defence Procurement Procedure, Light Combat Aircraft, Tejas Mk 1 A and 156, Light Combat Helicopters, Hindustan Aeronautics Limited, Kargil war
For Mains: 
1. Critically analyze the role of the Defence Acquisition Council (DAC) in streamlining and expediting defence acquisitions in India. (250 Words)
 
Previous Year Questions
 
1. The Light Combat Aircraft (LCA) designed and developed by HAL is also known as (MP Police Constable 2017)
A. Suryakiran        B. Aryabhatta      C. Tejas         D. Prakash
 
 
2. Which of the following statements is true about the recent procurement of Tejas fighter’s aircraft by IAF? (IB ACIO Grade II 2021) 
(1) The IAF has recently purchased 83 Tejas fighters aircraft from HAL
(2) The total deal is Rs. 78,000-crore
A. 1 only         B. Neither 1 nor 2         C.  Both 1 and 2      D. 2 only
 
 
3. What is the name of India's indigenously built Light Combat Helicopter? (OSSC BSSO  2022) 
A. Nag         B. Trishul         C. Prachand          D. Agni
 
 
4. The headquarters of the Hindustan Aeronautics Limited is located at _______________. (MP Police Constable 2017) 
A. Chennai        B. Bengaluru        C.  Dewas     D. Koraput
 
 
5. What was Kargil war otherwise known as? (MP Patwari  2017) 
A. Operation Vijay       B. Operation Vishwas   C. Operation Shaurya   D. Operation Paramveer
 
Answers:1-C, 2-A, 3-C, 4-B 5-A
 
Mains
1. Analyze the circumstances that led to the Tashkent Agreement in 1966. Discuss the highlights of the Agreement. (UPSC 2013)
 
Source: The Indian Express
 

KATCHATHEEVU ISLAND 

 
 
 
1. Context 
 
PRIME MINISTER Narendra Modi on Friday met visiting Sri Lanka Prime Minister Harini Amarasuriya, and discussed education, women’s empowerment, innovation, development cooperation and welfare of fishermen
 
 

2. Location of Katchatheevu Island

Katchatheevu is a small, uninhabited island covering 285 acres situated in the Palk Strait, positioned between India and Sri Lanka. It measures approximately 1.6 kilometres in length and slightly over 300 meters wide at its widest point.

  • The island is located northeast of Rameswaram, around 33 kilometres from the Indian coastline. It is situated approximately 62 kilometres southwest of Jaffna, which is at the northern tip of Sri Lanka. Moreover, Katchatheevu is about 24 kilometres away from Delft Island, an inhabited island that belongs to Sri Lanka.
  • The notable feature on Katchatheevu Island is the St. Anthony’s Church, built in the early 20th century. This Catholic shrine holds cultural and religious importance, especially during its annual festival. Christian priests from both India and Sri Lanka conduct services during this festival, attracting devotees from both countries who make pilgrimages to the island. In 2023, around 2,500 Indians travelled from Rameswaram to participate in this significant event.
  • Despite its religious and cultural significance, Katchatheevu is not suitable for permanent human settlement due to the absence of a reliable source of drinking water on the island. This limitation restricts any long-term habitation on the island, making it primarily a site for occasional religious gatherings and pilgrimages.

 

3. Historical Background of Katchatheevu Island

Katchatheevu Island, formed as a result of a volcanic eruption in the 14th century, holds a relatively recent place in the geological timeline.

  • During the early medieval period, Katchatheevu was under the control of the Jaffna kingdom of Sri Lanka. However, by the 17th century, control shifted to the Ramnad Zamindari, which was based in Ramanathapuram, approximately 55 kilometres northwest of Rameswaram.
  • With the advent of colonial rule, Katchatheevu became part of the Madras Presidency under the British administration. In 1921, both India and Sri Lanka, then British colonies, laid claim to Katchatheevu to delineate fishing boundaries in the region.
  • A survey conducted during this period marked Katchatheevu as part of Sri Lanka. However, a British delegation from India contested this claim, asserting ownership of the island by the Ramnad kingdom.
  • The dispute over the ownership of Katchatheevu persisted until 1974 when a final resolution was reached. This resolution marked a significant milestone in clarifying the status of the island and delineating the maritime boundaries between India and Sri Lanka.

 

4. Indo-Sri Lankan Maritime Agreement and Fishing Rights

In 1974, efforts were made by then-Prime Minister Indira Gandhi to resolve the maritime border dispute between India and Sri Lanka permanently. This initiative led to the establishment of the 'Indo-Sri Lankan Maritime Agreement,' which resulted in the cession of Katchatheevu to Sri Lanka by India.

  • Under the agreement, Indira Gandhi decided to "cede" Katchatheevu to Sri Lanka, perceiving the island to hold little strategic value for India. This move was intended to strengthen diplomatic ties between the two neighbouring countries.
  • Despite ceding the island, Indian fishermen were granted continued access to Katchatheevu as per the agreement, maintaining their traditional fishing practices in the region. However, the agreement did not explicitly address the issue of fishing rights, leading to subsequent challenges and differing interpretations.
  • Sri Lanka interpreted Indian fishermen's access to Katchatheevu as limited to activities such as resting, drying nets, and visiting the Catholic shrine, without requiring a visa. This interpretation created ambiguity regarding the extent of fishing rights granted to Indian fishermen in the waters surrounding Katchatheevu.
  • In 1976, another agreement during India's Emergency period further complicated matters by prohibiting both countries from fishing in each other's Exclusive Economic Zones (EEZs). However, Katchatheevu lies at the boundary of both countries' EEZs, adding to the uncertainty surrounding fishing rights and activities in the region.
  • The agreements made in the 1970s regarding Katchatheevu and fishing rights have left unresolved issues, contributing to periodic tensions and disputes between Indian fishermen and Sri Lankan authorities. The lack of clear delineation and mutual understanding regarding fishing access around Katchatheevu continues to be a contentious issue between India and Sri Lanka.

5. Impact of the Sri Lankan Civil War on Katchatheevu

The period between 1983 and 2009 was marked by the Sri Lankan Civil War, during which the border dispute involving Katchatheevu took a back seat amidst the intense conflict.

  • During the civil war, Sri Lankan naval forces were primarily focused on combating the Liberation Tigers of Tamil Eelam (LTTE) based in Jaffna. This preoccupation allowed Indian fishermen to venture deep into Sri Lankan waters without significant repercussions. Incursions by Indian fishermen, especially using larger trawlers, became common during this time. These activities led to tensions as they not only overfished but also caused damage to Sri Lankan fishing equipment and vessels.
  • The end of the civil war in 2009 brought about significant changes. Sri Lanka bolstered its maritime defences and shifted its attention to issues such as illegal fishing activities by Indian fishermen.
  • Indian fishermen, facing resource depletion in Indian waters, continued to venture into Sri Lankan waters as they had done for years. However, with increased surveillance and stricter enforcement post-civil war, they began facing arrests and other consequences by the Sri Lankan navy.
  • To this day, the Sri Lankan navy regularly apprehends Indian fishermen for illegal fishing activities in Sri Lankan waters. Incidents of alleged custodial torture and deaths have also been reported, further complicating the situation. Each such incident reignites demands to revisit the issue of Katchatheevu and its impact on fishing rights and maritime boundaries between India and Sri Lanka. The historical context of the island's ownership and fishing rights continues to be a source of contention and debate between the two nations.

 

6. Tamil Nadu's Stance on Katchatheevu

The issue of Katchatheevu holds significant political and emotional weight in Tamil Nadu, with successive governments and leaders advocating for its retrieval and the restoration of fishing rights for Tamil fishermen.

  • The decision to "cede" Katchatheevu to Sri Lanka in 1974 without consulting the Tamil Nadu state assembly sparked immediate protests. This decision was seen as infringing on traditional fishing rights and livelihoods of Indian Tamil fishermen, given the historical ties of the Ramnad Zamindari to the island.
  • The Tamil Nadu Assembly has consistently demanded the retrieval of Katchatheevu and the restoration of fishing rights. Leaders like J Jayalalitha and MK Stalin, among others, have actively pursued this agenda through legal and diplomatic channels.
  • In 2008, Jayalalitha filed a petition arguing that ceding Katchatheevu required a constitutional amendment and had adversely affected fishermen's rights. Similar efforts were made by other leaders, including appeals to the Supreme Court.
  • Despite Tamil Nadu's persistent demands, the Union government's stance has remained unchanged. It asserts that since Katchatheevu has been under dispute historically, no territorial or sovereignty claims were ceded.
  • While there is vocal demand for Katchatheevu's retrieval, practical challenges hinder such efforts. The Union government has pointed out that revisiting Katchatheevu's status would require drastic measures, potentially leading to diplomatic complexities or conflict.

 

7. The Way Forward
 
Resolving the Katchatheevu issue requires a delicate approach that acknowledges historical claims, addresses Tamil Nadu's concerns, and prioritises peaceful coexistence with Sri Lanka. Open communication, diplomatic efforts, and a focus on mutually beneficial solutions like designated fishing zones or joint patrols hold promise for a sustainable resolution.
 
 
For Prelims: India-Sri Lanka, Katchatheevu island, LTTE, Sri Lanka Civil War, Exclusive Economic Zones
For Mains: 
1. The Katchatheevu dispute highlights the complexities of maritime border demarcation. How can India ensure the security of its fishermen and promote sustainable fishing practices in the Palk Strait? (250 words)
2. You are a senior diplomat tasked with finding a solution to the Katchatheevu dispute. Outline a framework for negotiations that considers the historical, economic, and social aspects of the issue. (250 words)
 
 
Previous Year Questions 
 
1. Katchatheevu Island was ceded by India to which Country in 1974 (SSC CPO 2017)
A. Sri Lanka           B.Maldives           C.Indonesia               D.Myanmar
 
 
2. With reference to the United Nations Convention on the Law of Sea, consider the following statements: (UPSC 2022)
1. A coastal state has the right to establish the breadth of its territorial sea up to a limit not exceeding 12 nautical miles, measured from baseline determined in accordance with the convention.
2. Ships of all states, whether coastal or land-locked, enjoy the right of innocent passage through the territorial sea.
3. The Exclusive Economic zone shall not extend beyond 200 nautical miles from the baseline from which the breadth of the territorial sea is measured.
Which of the statements given above are correct?
A.1 and 2 only     B.2 and 3 only         C.1 and 3 only            D.1, 2 and 3
 
Answers: 1-A, 2-D
 
Source: The Indian Express
 
 

INDIANS AND H1-B

 
 
1. Context
 
In a further relaxation of its rules relating to the new $100,000 fee on H-1B visas, the United States government said on Monday that the fee will not apply to applications for a change of status or an extension of stay in the U.S.
 
2. What is H1-B Visa?
 
  • The H-1B visa program for skilled workers was introduced in 1990. These visas are initially issued for three years but can be extended to a maximum of six years.
  • Since 2004, the issuance of new H-1B visas has been capped at 85,000 annually, with 20,000 reserved specifically for foreign students who hold master’s degrees or higher from U.S. universities.
  • This cap, however, does not apply to certain entities like universities, think tanks, and other non-profit research organizations, allowing additional visas to be issued beyond the limit.
  • Applicants for H-1B visas must have a job offer from a U.S.-based sponsor, such as a company or institution. The U.S. government also grants extensions for individuals already working under H-1B visas.
  • During the fiscal year 2023 (October 2022 to September 2023), over 386,000 H-1B applications were approved. This figure includes nearly 119,000 new visas and approximately 267,000 extensions.
  • The total number of approvals in 2023 reflects a decline from over 474,000 in the previous fiscal year, 2022
 
3. Immigration in US
 
  • Immigration remains one of the most divisive political topics in the United States. An October YouGov poll revealed that 14.6% of registered voters considered it the most critical issue in the upcoming election, a significant increase from just 2.1% in 2012.
  • During election campaigns, much of the anti-immigration discourse centered on low-skilled labor migration. Beyond its inherent racial undertones, this narrative is driven by the perception that such immigration lowers wages and displaces jobs that might otherwise benefit the American working class.
  • This demographic has long struggled with challenges like high unemployment, stagnant wages, inflation, a housing crisis, and other economic difficulties.
  • Donald Trump effectively leveraged these concerns, pledging to improve conditions for the average American worker by restricting immigration.
  • The current debate echoes many of the same themes as Trump’s rhetoric about Mexicans "stealing American jobs," though the focus has shifted to the immigration of skilled workers competing for higher-paying positions
 
4. Visa for Skilled Workers
 
Indians and the H-1B visa
Source: USCIS
  • The H-1B visa program enables U.S. employers to hire foreign workers for roles requiring "a high level of skill" and "at least a bachelor’s degree," as outlined by the U.S. Department of Labor.
  • Established in 1990, the program was designed to assist employers in filling roles that demand specialized skills not readily available within the U.S. workforce, allowing qualified foreign individuals to work temporarily in the United States.
  • H-1B visas are typically issued for a maximum of six consecutive years. After this period, visa holders must either leave the U.S. for at least 12 months before returning or apply for permanent residency (a Green Card).
  • Currently, the program has an annual limit of 65,000 new visas (the regular cap), with an additional 20,000 visas available for applicants holding master’s degrees or higher from U.S. universities. However, not all H-1B applications are subject to this cap, resulting in the total number of approved petitions often exceeding the cap.
  • For example, in the fiscal year 2023, the United States Citizenship and Immigration Services (USCIS), under the Department of Homeland Security, approved 118,948 petitions for initial employment and 267,370 petitions for continuing employment.
  • Certain applicants, such as those employed by higher education institutions, nonprofit organizations affiliated with such institutions, nonprofit research organizations, or government research entities, are exempt from the annual cap
 
5. Challenges
 
  • Indian nationals are the primary beneficiaries of the H-1B visa program, consistently accounting for over 70% of all approved H-1B petitions annually since 2015, according to U.S. government data. Chinese nationals rank a distant second, making up 12-13% of approvals since 2018.
  • This significant representation of Indian professionals has drawn the attention of nativist MAGA Republicans, who have extended their anti-immigration rhetoric from low-skilled labor migration by Mexicans and Central Americans to include Indian workers in the tech industry.
  • Their argument revolves around the claim that the H-1B program, originally designed to attract exceptional global talent, is being exploited by tech companies to fill lower- to mid-level positions at wages much lower than those expected by American workers.
  • While proponents like Elon Musk argue that H-1B visas address a "permanent shortage of excellent engineering talent," critics counter that the issue is not a lack of skilled American workers but that they are deemed "too expensive to hire" by tech firms.
  • This critique is supported by data. An analysis of 60,000 H-1B approvals from USCIS in the 2023 fiscal year, conducted by Bloomberg, revealed that nearly 70% of Indian H-1B recipients earned annual salaries below $100,000.
  • For comparison, the median salary for IT professionals in the U.S. was $104,420 in May 2023, as reported by the U.S. Bureau of Labor Statistics. Approximately 25% of H-1B approvals for Indian professionals fell within the $100,000 to $150,000 salary range, while only 5% exceeded $150,000
 
6. Way Forward
 
H-1B visas play a vital role in addressing the skills gap in the United States, with wages largely determined by market forces. Globally, Chinese and Indian professionals lead in STEM fields. According to data from the Center for Security and Emerging Technology (CSET) in 2020, China produced 3.57 million STEM graduates, and India followed with 2.55 million, far surpassing the United States, which had 820,000 STEM graduates
 
 
 
For Prelims: H-1B visa, United States, U.S. Citizenship and Immigration Services, STEM fields, lottery system, 
For Mains: 
1. What are the implications of the new H-1B visa regime for US-India relations?
Discuss the measures can the Indian government take to support Indian IT workers affected by the new H-1B visa regime. (250 Words)
 
 
Previous Year Questions
 
1. Consider the following statements: (UPSC 2019)
1. Coal sector was nationalized by the Government of India under Indira Gandhi.
2. Now, coal blocks are allocated on lottery basis.
3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.
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: A
 
2. Which of the following statements about town planning in British India in early 19th century is/are correct? (UPSC CAPF 2018) 
1. The funds for town improvement were also raised through public lotteries.
2. The threats of epidemics gave an impetus to town planning in the early decades of 19th century.
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: C
 
Source: Indianexpress

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