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DAILY CURRENT AFFAIRS, 04 NOVEMBER 2025

GREAT NICOBAR ISLAND PROJECT

 
 
1. Context
 
The Andaman and Nicobar Islands administration has prepared a map for the denotification and renotification of tribal reserve land for the Great Nicobar Island mega-infrastructure project, and will soon be finalising the sites for setting up towers in these lands.
 
2.What is the Great Nicobar Island Project?
 
  • The Great Nicobar Island Project is a significant infrastructure development initiative undertaken by the Indian government on Great Nicobar Island, part of the Andaman and Nicobar Islands in the Indian Ocean. The project aims to transform the island into a strategic and economic hub.
  • A deep-draft international container transshipment terminal is planned to be developed at Galathea Bay. This port is expected to serve as a key shipping hub in the region, facilitating trade and reducing dependency on transshipment ports in other countries
  • An international airport is proposed to improve connectivity to the island, both for tourism and strategic purposes. This airport will be capable of handling wide-bodied aircraft and will enhance the island's accessibility
  • To support the infrastructure and population growth, a gas- and solar-based power plant will be developed. This plant aims to provide a reliable and sustainable energy source for the island's needs
  • A modern township with residential, commercial, and recreational facilities is planned to accommodate the increased population and workforce that the project will attract. This township is expected to have state-of-the-art amenities and infrastructure
 
Strategic and Economic Importance
  • Great Nicobar Island is situated near the Malacca Strait, one of the world's busiest shipping lanes. Developing this island will enhance India's strategic presence in the Indian Ocean Region, particularly in terms of maritime security and trade control
  • The project aims to boost the local economy by creating job opportunities and attracting investments. Improved infrastructure and connectivity are expected to stimulate tourism and other economic activities on the island
  • Enhancing connectivity through the transhipment port and international airport will integrate Great Nicobar Island more closely with the global and regional trade networks, potentially making it a key logistical and commercial hub
 
Environmental and Social Considerations
  • The project has raised concerns about its potential impact on the island's rich biodiversity and ecosystems. Great Nicobar Island is home to unique flora and fauna, including endangered species. Ensuring sustainable development practices and environmental protection measures will be crucial
  • There are concerns about the impact on local communities, particularly indigenous tribes such as the Nicobarese and Shompen. Ensuring that their rights and livelihoods are protected is a key consideration for the project
  • The project's emphasis on using renewable energy sources like solar power and promoting eco-friendly practices is an effort to mitigate environmental concerns. However, balancing development with conservation will be an ongoing challenge
 
 
Great Nicobar
 
Great Nicobar is the largest of the Nicobar Islands, part of the Union Territory of Andaman and Nicobar Islands in India. It is located in the Indian Ocean, near the western entrance of the Malacca Strait, which is a key maritime route for international trade.
 
Here are some key aspects of Great Nicobar:
  • Great Nicobar is situated at the southern end of the Nicobar Islands, approximately 1,280 kilometers (800 miles) from the Indian mainland
  • The island features diverse landscapes, including dense tropical rainforests, hilly terrain, and coastal areas. Mount Thullier is the highest point on the island, rising to an elevation of about 642 meters (2,106 feet)
  • Great Nicobar is known for its rich biodiversity and is part of the Great Nicobar Biosphere Reserve. The island hosts unique flora and fauna, including several endemic and endangered species. The Nicobar megapode, Nicobar tree shrew, and saltwater crocodile are some of the notable species found here
  • The island is sparsely populated, with a mix of indigenous tribes and settlers from other parts of India. The Nicobarese and Shompen are the primary indigenous communities on the island
  • The indigenous tribes have distinct cultural practices, languages, and traditions. Efforts are being made to preserve their cultural heritage and ensure their rights and well-being amidst development initiatives
  • Great Nicobar’s strategic location near the Malacca Strait, one of the world's busiest maritime routes, enhances its significance for India's maritime security and trade interests
  • Given its strategic position, the island hosts Indian military installations, which play a crucial role in monitoring and securing the Indian Ocean Region
 
 
3. Strategic Importance
 
  • The Bay of Bengal and Indian Ocean region are critically important for India's strategic and security interests, especially as the Chinese People’s Liberation Army Navy aims to increase its presence in these waters.
  • India is concerned about the buildup of Chinese naval forces at key Indo-Pacific chokepoints, particularly Malacca, Sunda, and Lombok. China's efforts to extend its influence in the area include constructing a military facility on the Coco Islands in Myanmar, located just 55 km north of the Andaman & Nicobar Islands.
  • Earlier this year, The Indian Express reported significant upgrades to the military infrastructure on the Andaman & Nicobar Islands.
  • This includes modernizing airfields and jetties, creating new logistics and storage facilities, establishing a base for military personnel, and enhancing surveillance capabilities.
  • The goal of these upgrades is to support the deployment of more military forces, larger warships, aircraft, missile batteries, and troops.
  • Maintaining close surveillance over the area surrounding the archipelago and establishing a strong military presence on Great Nicobar is crucial for India's national security
4. Environmental Concerns
  • The proposed infrastructure upgrade has faced opposition due to its potential ecological threat to the islands. Wildlife conservation researchers, anthropologists, scholars, civil society members, and the Congress party have raised concerns about the devastating impact on the Shompen, a particularly vulnerable tribal group (PVTG) of hunter-gatherers, who have an estimated population of a few hundred individuals residing in a tribal reserve on the island.
  • Critics claim the project infringes on the rights of the tribal population and will harm the island’s ecology, including the felling of nearly a million trees. There are fears that the port project will damage coral reefs, affecting the local marine ecosystem, and pose a threat to terrestrial species like the Nicobar Megapode bird and leatherback turtles, which nest in the Galathea Bay area.
  • A statement by senior Congress leader and former Environment Minister Jairam Ramesh highlighted that the proposed port is in a seismically active zone, which experienced permanent subsidence of about 15 feet during the 2004 tsunami.
  • The statement also accused the local administration of insufficiently consulting the Tribal Council of Great and Little Nicobar Islands as required by law.
  • In November 2022, the tribal council withdrew a no-objection certificate it had issued for the diversion of about 160 sq km of forest land, citing inadequate information provided to them.
  • In April 2023, the Kolkata Bench of the National Green Tribunal (NGT) chose not to interfere with the environmental and forest clearances granted to the project. However, the Tribunal ordered the formation of a high-power committee to review the clearances. There is still no clarity on whether the committee, mainly composed of government representatives, has submitted its report
 
 
For Prelims: National Green Tribunal (NGT), Great Nicobar Island, Coastal Regulation Zones, Turtles, Dolphins, Particularly Vulnerable Tribal Groups (PVTGs), Mangroves, Great Nicobar Biosphere Reserve
For Mains: Significance and Issues Related to Great Nicobar Island Project
 
Previous Year Questions

1. Which one of the following pairs of islands is separated from each other by the ‘Ten Degree Channel’? (2014)

(a) Andaman and Nicobar
(b) Nicobar and Sumatra
(c) Maldives and Lakshadweep
(d) Sumatra and Java

Answer (a)

2. Which of the following have coral reefs? (2014)

  1. Andaman and Nicobar Islands
  2. Gulf of Kachchh
  3. Gulf of Mannar
  4. Sunderbans

Select the correct answer using the code given below:

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

Answer (a)

3. In which one of the following places is the Shompen tribe found? (2009)

(a) Nilgiri Hills
(b) Nicobar Islands
(c) Spiti Valley
(d) Lakshadweep Islands

Answer (b)

 
Source: indianexpress
 
 

CLOUD SEEDING

 
 
1. Context
 
For the first time in nearly 50 years, Delhi conducted two cloud seeding trials with the Indian Institute of Technology Kanpur (IITK) last week. The aim was to induce rain over Delhi to settle the build of smog and particulate matter that had deteriorated the air quality.
 
2. What is Cloud Seeding?
Cloud seeding is a form of weather modification technology designed to induce artificial rainfall.
Its effectiveness relies on the presence of adequate pre-existing clouds in the atmosphere.
Rain occurs when atmospheric moisture reaches a saturation point, and cloud seeding aims to expedite this process by introducing chemical 'nuclei.'
These nuclei provide surfaces around which condensation can occur.
Examples of rain-inducing nuclei include silver or potassium iodides, solid carbon dioxide (dry ice), or liquid propane. Delivery methods for these seeding agents include aerial dispersal via aircraft or ground-based spraying.
 
3. Cloud Seeding Methods

Cloud seeding is a weather modification technique used to enhance precipitation by introducing seeding agents into clouds. Various methods are employed to disperse these agents, promoting the formation of precipitation. Here are some common cloud seeding methods:

Aerial Seeding:

    • Aircraft Dispersion: Cloud seeding agents, such as silver iodide or other materials, are released into the atmosphere from aircraft. Flares or canisters containing the seeding agents are ignited and dispersed at appropriate cloud levels. The aircraft may fly through clouds or release seeding agents from above, depending on the cloud characteristics.

Ground-Based Seeding:

    • Ground-Based Generators: These are stationed on the ground to release seeding agents into the atmosphere. These generators may use flares or other mechanisms to disperse the seeding agents vertically into the air. Ground-based seeding is often employed in areas where aircraft may not be practical or cost-effective.

    • Rocket Launches: Some cloud seeding programs use rockets equipped with seeding agents to reach specific altitudes in the atmosphere. The rockets are launched from the ground and disperse the seeding agents into the target clouds.

Hygroscopic Flares:

    • Hygroscopic Materials: Certain seeding agents, known as hygroscopic materials, have an affinity for water vapor. These materials can absorb moisture from the air, promoting the coalescence of water droplets and eventually precipitation. Calcium chloride is an example of a hygroscopic material used in cloud seeding.

Remote Sensing and Monitoring:

    • Weather Radar: Meteorologists use weather radar to monitor cloud development and precipitation patterns. This information helps identify suitable clouds for seeding and assess the effectiveness of cloud seeding operations.

    • Weather Balloons and Instruments: Instruments carried by weather balloons provide data on atmospheric conditions, helping meteorologists determine the feasibility of cloud seeding. These instruments measure factors such as temperature, humidity, and wind speed at different altitudes.

Natural Ice Nuclei:

    • Collecting Natural Ice Nuclei: In some cases, natural ice nuclei (particles that can initiate the freezing of water droplets) are collected and dispersed into clouds to encourage the formation of ice crystals. This method is less common than using artificial seeding agents.
4. Applications of Cloud Seeding

Cloud seeding is primarily employed to enhance precipitation in specific regions, and it has applications in various fields. Some notable applications of cloud seeding include:

Water Resource Management:

    • Increased Precipitation: Cloud seeding aims to boost rainfall or snowfall in targeted areas, contributing to increased water resources. This is particularly valuable in regions facing water scarcity or drought conditions.

Agriculture:

    • Enhanced Crop Irrigation: Increased precipitation resulting from cloud seeding can benefit agriculture by providing additional water for crop irrigation. This is especially significant in arid or semi-arid regions where water availability is a limiting factor for agricultural productivity.

Water Supply Augmentation:

    • Reservoir Replenishment: Cloud seeding can help replenish reservoirs and aquifers, contributing to the augmentation of water supplies for domestic, industrial, and agricultural use.

Snowpack Augmentation:

    • Winter Sports Industry: In mountainous regions, cloud seeding is sometimes employed to enhance snowpack, particularly for ski resorts and winter sports areas. Increased snowfall can extend the winter season and improve conditions for skiing and other activities.

Forest Fire Prevention:

    • Reducing Fire Risk: In certain cases, cloud seeding is explored as a tool for reducing the risk of forest fires. By inducing precipitation, especially in dry and fire-prone areas, the moisture content of vegetation may increase, lowering the likelihood of wildfires.

Air Quality Improvement:

    • Particle Removal: Cloud seeding can contribute to the removal of particulate matter and pollutants from the atmosphere. The process of precipitation can capture particles and cleanse the air.

Research and Climate Studies:

    • Scientific Investigations: Cloud seeding is sometimes used in scientific research to study cloud dynamics, precipitation processes, and atmospheric interactions. These studies help improve our understanding of weather patterns and climate systems.

Hydropower Generation:

    • Improved Reservoir Levels: Increased precipitation resulting from cloud seeding can contribute to higher water levels in reservoirs, positively impacting hydropower generation.
5. What are the Challenges involved in Cloud Seeding?

Cloud seeding, despite its potential benefits, is a practice that comes with several challenges and considerations. Some of the key challenges involved in cloud seeding include:

Effectiveness and Unpredictability:

    • The effectiveness of cloud seeding can be variable and is dependent on various factors such as cloud type, atmospheric conditions, and the presence of suitable seeding materials. Predicting the outcome of cloud seeding operations with certainty remains a challenge.

Ethical and Environmental Concerns:

    • Cloud seeding involves the intentional modification of weather patterns, raising ethical and environmental questions. Concerns include potential unintended consequences, ecological impacts, and the ethical considerations of altering natural precipitation processes.

Public Perception and Acceptance:

    • Cloud seeding initiatives may face public skepticism and opposition due to concerns about the unknown environmental impacts, the artificial manipulation of weather, and potential health effects of the seeding agents. Public acceptance is crucial for the success and continuation of cloud seeding programs.

Regulatory Approval:

    • Implementing cloud seeding programs often requires regulatory approval and adherence to environmental regulations. Obtaining permits and addressing regulatory concerns can be a time-consuming and complex process.

Scientific Uncertainty:

    • The scientific understanding of cloud seeding is still evolving, and uncertainties remain regarding its long-term effects, environmental impact, and overall effectiveness. Ongoing research is essential to address these uncertainties and improve the understanding of the practice.

Limited Scope and Scale:

    • Cloud seeding is generally effective within certain weather conditions and specific cloud types. Its applicability may be limited to certain regions and may not work in all meteorological conditions.

Weather Variability:

    • Natural weather variability can impact the success of cloud seeding. Unpredictable changes in atmospheric conditions, including wind patterns and temperature fluctuations, can influence the dispersion and effectiveness of seeding agents.

Technical Challenges:

    • The technology involved in cloud seeding, including the delivery of seeding agents, can face technical challenges. For example, the dispersion of seeding agents from aircraft or ground-based generators must be carefully calibrated for optimal results.

Cost:

    • Implementing and maintaining cloud seeding programs can be expensive. The costs include aircraft operations, ground-based generators, and the purchase of seeding materials. Cost-effectiveness is a consideration in the decision to pursue cloud seeding initiatives.

Data Collection and Monitoring:

    • Adequate data collection and monitoring are essential for assessing the impact of cloud seeding. Establishing comprehensive monitoring systems to evaluate changes in precipitation patterns and environmental conditions requires significant resources and infrastructure
 
For Prelims: General issues on Environmental ecology
For Mains: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment
 
Previous Year Questions

1.In the context of which of the following do some scientists suggest the use of cirrus cloud thinning technique and the injection of sulphate aerosol into stratosphere? (UPSC CSE 2019)

(a) Creating the artificial rains in some regions
(b) Reducing the frequency and intensity of tropical cyclones
(c) Reducing the adverse effects of solar wind on the Earth
(d) Reducing the global warming

Answer (d)
 
Source: Indianexpress
 
 

HIGH SEAS TREATY

 
 
1. Context
 
The High Seas Treaty was ratified by over 60 countries in September; it will now be enforced in January 2026. The treaty sets rules to preserve and use marine biodiversity sustainably and addresses threats from climate change, overfishing and pollution.
 
2. What are High Seas?
 
  • Covering 64% of the ocean's surface and approximately 43% of the Earth's area, the high seas are home to around 2.2 million marine species and up to a trillion types of microorganisms. These international waters are open to all, granting equal rights for navigation, overflight, economic ventures, scientific research, and the establishment of infrastructure such as undersea cables.

  • The lack of designated responsibility for the high seas has led to widespread issues such as resource overexploitation, biodiversity loss, pollution—including plastic waste—and ocean acidification. According to the United Nations, an estimated 17 million tonnes of plastic were dumped into oceans in 2021, a figure projected to rise in the years ahead.

  • Concluded in March 2023, the treaty focuses on ocean areas beyond any nation's jurisdiction. National jurisdictions typically extend up to 200 nautical miles (370 km) from the coastline, known as exclusive economic zones (EEZs). Beyond these zones lie the high seas or international waters. This treaty, formally titled the Agreement on Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction, addresses the conservation and sustainable use of marine resources in these global commons

 
3. Key Objectives of High Seas Treaty
 
➤ Establishment of marine protected areas (MPAs), similar to designated protected forests and wildlife zones.
➤ Sustainable utilization of marine genetic resources and fair distribution of benefits derived from them.
➤ Implementation of environmental impact assessments for significant oceanic activities.
➤ Promotion of capacity-building initiatives and technology transfer
 
4.Key takeaways from High Seas
 
  • Marine-Protected Areas (MPAs): MPAs are zones in the ocean where ecosystems and biodiversity are under stress from human activities or climate change. They are akin to national parks or wildlife sanctuaries on land. Activities within these areas will be strictly regulated, with conservation measures similar to those implemented in forest and wildlife reserves. Currently, only about 1.44% of high seas are protected, according to the International Union for Conservation of Nature (IUCN).

  • Marine Genetic Resources: Oceans are home to an immense variety of life forms, many of which hold potential for applications like drug development. Genetic data from these organisms is being extracted and studied for potential benefits. The treaty aims to ensure that any resulting benefits, including financial ones, are equitably shared and not restricted by stringent intellectual property rights. Additionally, knowledge gained from these explorations is to remain openly accessible to all.

  • Environmental Impact Assessments (EIAs): The treaty mandates conducting prior environmental impact assessments for activities that could harm marine ecosystems or conservation efforts. These assessments must be made publicly available. EIAs are also required for activities within national jurisdictions if their impact extends to the high seas.

  • Capacity Building and Technology Transfer: Emphasis is placed on capacity building and technology transfer to support countries, particularly small island nations and landlocked states, that lack the resources or expertise to participate effectively in conservation or sustainable exploitation of marine resources. The treaty seeks to alleviate the additional burden these nations might face, such as conducting environmental impact assessments

 
Ratification and Treaty
 
Ratification refers to the formal process through which a country commits to being legally obligated by the provisions of an international law. This is distinct from simply signing the law. Signing signifies a country’s agreement with the law's principles and its intention to adhere to them. However, until the country completes the ratification process— which differs across nations— it is not legally required to comply with the provisions of that law
 
 
5.UN Convention on Laws and Seas
 
  • The United Nations Convention on the Law of the Sea (UNCLOS) is a comprehensive international legal framework that establishes guidelines for the proper use and governance of seas and oceans globally. It outlines nations' rights and responsibilities concerning oceanic activities and addresses issues such as sovereignty, navigation, and exclusive economic rights. Territorial waters and Exclusive Economic Zones (EEZs) are demarcated based on UNCLOS provisions.

  • According to UNCLOS, the Territorial Sea (TS) extends up to 12 nautical miles from a nation’s coastline. While a state exercises complete sovereignty over the waters within its TS, the EEZ grants the state exclusive economic rights over the resources beneath the sea's surface without full sovereignty.

  • UNCLOS provides overarching principles for fair access to ocean resources and the conservation of biodiversity and marine ecosystems. However, it does not detail the methods for achieving these goals. This gap is addressed by the High Seas Treaty, which functions as an implementation agreement under UNCLOS, similar to how the Paris Agreement operates within the framework of the UN Framework Convention on Climate Change (UNFCCC)

 
For Prelims: UN high seas, UN high seas treaty, UNCLOS,  Biodiversity of Areas Beyond National Jurisdiction (BBJN), Exclusive Economic Zone, Territorial Waters.
For Mains: 1. Discuss the significance of the Treaty of High Seas and explain how to save our high seas from overfishing and pollution.
 

Previous year Question

1. Concerning 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 a baseline determined by the convention.
  2. Ships of all states, whether coastal or landlocked, 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 is correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer : D
 
Source: Indianexpress
 
 

PREVENTION OF MONEY LAUNDERING ACT (PMLA)

1. Context

The Enforcement Directorate has attached assets worth about ₹7,500 crore allegedly linked to Anil Ambani’s Reliance Group in connection with the investigations under the Prevention of Money Laundering Act (PMLA), the agency said on Monday.

2. Why is the PMLA verdict under review?

The PMLA verdict is under review because of several concerns raised by petitioners and legal experts about the constitutionality of the law and the extent of the powers granted to the Enforcement Directorate (ED).

Specific Concerns

  • The PMLA's retrospective application, allowing for the prosecution of offences committed before the law's enactment, has been challenged as violative of the fundamental right against ex post facto laws.
  • The PMLA places the burden of proof on the accused to establish innocence, a departure from the general principle of criminal law that presumes innocence until proven guilty.
  • Critics argue that the PMLA's provisions are overly broad and draconian, giving the ED excessive powers to arrest, detain, and seize assets without adequate judicial oversight.
  •  The PMLA's lack of adequate safeguards against arbitrary actions and misuse of power has raised concerns about the potential for abuse of authority by the ED.
  •  The PMLA's provisions have been criticized for potentially infringing upon fundamental rights such as the right to personal liberty, the right to property, and the right against self-incrimination.

3. Money laundering

  • Money laundering is the illegal process of making large amounts of money.
  • This money is generated by criminal activity but may appear to come from a legitimate source.
  • Criminal activities include drug trafficking, terrorist funding, illegal arms sales, smuggling, prostitution rings, insider trading, bribery and computer fraud schemes that produce large profits.

3.1. Different stages in money laundering

Generally, money laundering is a three-stage process:
  1. Placement: The crime money is injected into the formal financial system.
  2. Layering: Money injected into the system is layered and spread over various transactions and book-keeping tricks to hide the source of origin.
  3. Integration: Laundered money is withdrawn from the legitimate account to be used for criminal purposes. Now, Money enters the financial system in such a way that the original association with the crime is disassociated.  The money now can be used by the offender as legitimate money.
All three sources may not be involved in money laundering. Some stages could be combined or repeated many times.

3.2. Impact of Money Laundering on Economic Development

Money laundering can have a significant impact on economic development by:

  • When money laundering occurs, it can undermine public confidence in banks and other financial institutions. This can lead to increased risk aversion and a decline in investment, which can hamper economic growth.
  • Money laundering can distort economic activity by directing funds away from legitimate businesses and into criminal enterprises. This can lead to inefficient allocation of resources and slower economic growth.
  • Money laundering can facilitate corruption by providing a means to conceal the proceeds of corrupt activities. This can weaken governance and undermine the rule of law, further hindering economic development.
  • Money laundering can also lead to a loss of tax revenue, as criminals seek to evade taxes on their illicit gains. This can deprive governments of much-needed funds for essential services, such as education and healthcare.
  • Money laundering is often used to finance organized crime groups, which can lead to an increase in violence and instability.
  • Money laundering can also be used to finance terrorist activities, posing a serious threat to international security.
  • Money laundering can also have a direct impact on individuals and businesses, who may lose money or be victims of fraud as a result of this crime.

4. Prevention of Money-Laundering Act, 2002 (PMLA)

The Prevention of Money-Laundering Act, 2002 (PMLA) is a comprehensive legislation enacted by the Indian Parliament to combat money laundering and other financial crimes. It aims to prevent the use of proceeds of crime, particularly those derived from drug trafficking, organized crime and corruption, from being laundered and utilized to finance further criminal activities or to gain legitimacy.

4.1. Key Features of the PMLA

  • The PMLA prohibits the process of money laundering, defined as the act of concealing or disguising the proceeds of crime.
  • The PMLA empowers the Enforcement Directorate (ED), the designated agency for investigating money laundering cases, to attach and seize property derived from or involved in money laundering.
  • The PMLA provides for the confiscation of property that is involved in money laundering, even if it is not in the possession of the accused person.
  • The PMLA grants the ED extensive powers to conduct searches, make arrests, and detain individuals suspected of money laundering.
  • The PMLA facilitates international cooperation in combating money laundering through mutual legal assistance treaties and other mechanisms.

4.2. Significance of the PMLA

The PMLA has played a crucial role in strengthening India's anti-money laundering framework and enhancing its global standing in combating financial crimes. It has enabled the investigation and prosecution of numerous money laundering cases, leading to the recovery of substantial illicit funds.

4.3. Challenges in Implementing the PMLA

Despite its significance, the implementation of the PMLA has faced certain challenges, including:

  • The PMLA and other laws, such as the Narcotics Drugs and Psychotropic Substances Act, have overlapping jurisdictions, which can lead to confusion and delays in investigations.
  • There have been concerns about the lack of adequate safeguards against arbitrary actions and misuse of power under the PMLA.
  • The ED faces resource constraints in terms of manpower and infrastructure, which can hamper its ability to effectively investigate and prosecute money laundering cases.
 
5. About the Directorate of Enforcement 
 
  • The Directorate of Enforcement (ED) is an agency in India that primarily deals with the enforcement of economic laws and regulations to combat money laundering, foreign exchange violations, and financial fraud.
  • The ED is part of the Department of Revenue under the Ministry of Finance, Government of India.
  • The Directorate of Enforcement was established on 1st May 1956, as the "Enforcement Unit" within the Department of Economic Affairs.
  • Its primary focus was on preventing and detecting violations of the Foreign Exchange Regulation Act (FERA) of 1947.
  • Over the years, the agency's role expanded, and in 1999, the Enforcement Directorate was established as a separate entity under the Ministry of Finance.
  • The enactment of the Prevention of Money Laundering Act (PMLA) in 2002 further broadened its jurisdiction, giving it the power to investigate cases related to money laundering.
  • Since its establishment, the ED has played a crucial role in combating economic offences and ensuring compliance with economic laws in India.
  • It has been involved in several high-profile cases, including those related to financial scams, money laundering by influential individuals, and cross-border financial crimes.
  • The ED collaborates with various domestic and international agencies, including financial intelligence units, law enforcement agencies, and Interpol, to gather information, share intelligence, and effectively coordinate efforts to combat economic offences.

5.1. Functions and Roles of ED

  • Enforcing Economic Laws: The primary function of the ED is to enforce two key economic laws in India: the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA). It ensures compliance with these laws and investigates money laundering, foreign exchange violations, and economic fraud cases.
  • Money Laundering Investigations: The ED investigates cases involving money laundering, which is the process of concealing the origins of illegally obtained money to make it appear legitimate. It identifies and seizes properties and assets derived from illicit activities and prevents their further use.
  • Foreign Exchange Violations: The ED is responsible for investigating cases related to violations of foreign exchange laws and regulations. It monitors and controls foreign exchange transactions to maintain the stability of the Indian rupee and prevent illegal activities such as smuggling and illegal money transfers.
  • Financial Frauds: The ED also investigates and takes action against financial frauds, including bank frauds, Ponzi schemes, and other fraudulent activities affecting the Indian financial system. It works closely with other law enforcement agencies, such as the Central Bureau of Investigation (CBI), to tackle complex financial crimes.
 
For Prelims: Prevention of Money Laundering Act, ED, CBI, Foreign Exchange Management Act, 
For Mains: 
1. Critically evaluate the Prevention of Money Laundering Act, 2002 (PMLA) in its effectiveness in combating money laundering in India. (250 Words)
 
 
Previous Year Questions
 
1. Which one of the following is not correct in respect of Directorate of Enforcement? (CDS  2021)
A. It is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance.
B. It enforces the Foreign Exchange Management Act, 1999.
C. It enforces the Prevention of Money Laundering Act, 2002.
D. It enforces the Prohibition of Benami Property Transaction Act, 1988.
 
2. The Prevention of Money Laundering Act, 2002 become effective since which one of the following dates? (UKPSC RO/ARO 2012)
 
A. July 2002          B. August 2003        C. July 2004         D. July 2005
 
3. FEMA (Foreign Exchange Management Act) was finally implemented in the year (UPPSC  2013)
A. 1991         B. 1997         C. 2000             D. 2007
 
4. The Foreign Exchange Regulation Act was replaced by the ______ in India. (SSC Steno 2020) 
A. Foreign Exchange Currency Act
B. Foreign Exchange Finances Act
C. Foreign Exchange Funds Act
D. Foreign Exchange Management Act
 
5. "Central Bureau of Intelligence and Investigation" is listed in the __________ list given in the Seventh Schedule of the Constitution of India. (SSC CGL 2017) 
A. Union             B. State             C. Global          D. Concurrent
 
Answers: 1-D, 2-D, 3-C, 4-D, 5-A
 
Source: The Indian Express
 
 

PARTICULARLY VULNERABLE GROUPS (PVTG)

 
 
1. Context
 
For decades after independence, there were 75 tribes that were extremely backward, even among tribals. It was for these Particularly Vulnerable Tribal Groups (PVTGs) that PM Narendra Modi launched the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) from Khunti on November 15, 2023, on the occasion of Janjatiya Gaurav Divas.
 
2.Who are Particularly Vulnerable Tribal Groups (PVTG)?
 
  • Particularly Vulnerable Tribal Groups (PVTGs) are specific indigenous communities in India that face an exceptionally high risk of vulnerability and marginalization due to various factors like geographic isolation, social and economic deprivation, and historical injustices.
  • These groups are identified based on criteria set by the Indian government, considering their unique cultural practices, distinct languages, and social customs that set them apart from the larger population.
  • PVTGs receive special attention and support from government agencies and NGOs to protect their distinct identities, preserve their cultural heritage, improve their living conditions, and ensure their socio-economic development. Various welfare schemes and initiatives are directed towards these groups to address their specific needs, including access to healthcare, education, livelihood opportunities, land rights, and basic amenities. The aim is to empower these communities while respecting their traditions and way of life
  • The actual number of PVTGs is around 63, accounting for overlaps and repetitions, as per the publication ‘The Particularly Vulnerable Tribal Groups of India — Privileges and Predicaments’ by the Anthropological Survey of India
  • Baseline surveys have only been conducted for about 40 PVTG groups, emphasising the need for targeted development planning.
  • In India, the identification and declaration of Particularly Vulnerable Tribal Groups (PVTGs) is done by the Ministry of Tribal Affairs at the national level, in collaboration with state governments. The identification process involves specific criteria and guidelines set by the government to assess the vulnerability and distinctiveness of tribal communities
  • Odisha (formerly Orissa) in India is known to have the highest number of Primitive Tribal Groups (PTGs). This state is home to a significant population of indigenous or tribal communities, some of which are categorized as Primitive Tribal Groups due to their isolated lifestyle, unique cultural practices, and historical marginalisation.
 
3. What are the challenges in PVTG development?

The development of Particularly Vulnerable Tribal Groups (PVTGs) faces several challenges, primarily due to their unique circumstances, cultural isolation, historical marginalization, and specific vulnerabilities.

Some of the key challenges include:

  • Many PVTGs reside in remote and geographically isolated areas, which pose challenges in terms of accessibility for delivering essential services like healthcare, education, and infrastructure development
  • PVTGs often face economic deprivation, lack of livelihood opportunities, and limited access to resources. Poverty and inadequate infrastructure exacerbate their challenges
  • Balancing the preservation of their distinct cultural identities and traditions with the need for socio-economic development poses a challenge. Development interventions must be culturally sensitive and respect their traditional practices
  • PVTGs frequently experience health disparities and inadequate access to healthcare facilities. Malnutrition and lack of awareness about modern healthcare practices are common concerns
  • Limited access to quality education due to factors like language barriers, lack of schools in remote areas, and cultural differences hampers educational development among PVTGs
  • Disputes over land rights and lack of secure land tenure affect their livelihoods. Encroachment on their traditional lands and displacement due to development projects further exacerbate these challenges
  • PVTGs are vulnerable to exploitation due to their marginalized status. They often face social discrimination, human rights violations, and exploitation in labor and other spheres

4.Government's Approach in addressing the Issues

 

  • Participatory approach from the grassroots level: Rather than a standardized approach, the program tailors strategies to suit the unique requirements of PVTGs, actively engaging them in decision-making related to land rights, social integration, and cultural conservation. This method, rooted in community involvement, embraces their customs, beliefs, and traditions, ensuring their active involvement in the planning, execution, and oversight of development endeavors.
  • Enhancing livelihoods: Empowering through skill-building programs and providing resources such as land and credit facilitates sustainable livelihoods. Implementation of the Forest Rights Act, specifically Section 3(1)(e) for the rights of primitive tribal groups and pre-agricultural communities, secures their access to forest resources. Encouraging traditional techniques and skill enhancement via partnerships with industries contributes to preserving cultural heritage alongside sustainable progress.
  • Health, nutrition, and education focus: Deploying outreach methods like Mobile Medical Health Units becomes imperative in remote regions. Tailoring these strategies to address specific health concerns like teenage pregnancies and dental health, and bridging language and cultural gaps through trained healthcare personnel or recruiting community members is vital. Collaborating with trusted traditional healers can also assist in addressing intricate health challenges.
  • Incorporating their language and culture into educational curricula, offering transportation services, and training educators about PVTG cultural contexts enhance educational accessibility. Additionally, incentivizing staff working in PVTG areas and establishing specialized educational institutions catering to PVTG needs can augment opportunities for these communities.
  • Infrastructure development challenges: The settlements of PVTGs often fail to meet requirements for schemes like the Pradhan Mantri Grameen Sadak Yojana, Pradhan Mantri Awas Yojana, and Jal Jeevan Mission due to factors like population thresholds or insufficient surveys
5.What schemes have been floated for PVTG?
 

Several schemes and initiatives have been introduced by the Indian government to address the needs and uplift the living standards of Particularly Vulnerable Tribal Groups (PVTGs). Some of these schemes include:

  • Vanbandhu Kalyan Yojana: Launched by the Ministry of Tribal Affairs, this scheme aims to improve the socio-economic status of tribal communities, including PVTGs, by focusing on areas like education, healthcare, livelihood, and infrastructure development.

  • Scheduled Tribes Component (STC): Under this scheme, funds are allocated to states to implement various development programs for tribal communities, including PVTGs. These funds support initiatives related to education, health, housing, and skill development.

  • Special Central Assistance to Tribal Sub-Schemes (SCA to TSS): This scheme provides financial assistance to tribal development projects, including those focused on PVTGs, aimed at their socio-economic empowerment.

  • Forest Rights Act (FRA): Implementation of the Forest Rights Act is crucial for securing land and resource rights for tribal communities, including PVTGs, allowing them access to forest resources and improving their livelihoods.

  • Eklavya Model Residential Schools (EMRS): EMRS aims to provide quality education to tribal children, including those from PVTGs, by establishing residential schools with modern facilities and educational resources.

  • Integrated Tribal Development Agencies (ITDAs): These agencies work on comprehensive development plans for tribal areas, including PVTG regions, focusing on education, healthcare, infrastructure, and livelihood promotion.

  • Tribal Sub-Plan (TSP) and Tribal Development Blocks (TDBs): These plans and blocks are dedicated to tribal development, including PVTGs, ensuring targeted allocation of funds for their socio-economic upliftment

6. Way forward
 
A 2014 report by Dr. Hrusikesh Panda, Secretary of the Ministry of Tribal Affairs, and a 2015 report by Virginius Xaxa highlighted these concerns. The actual number of PVTGs is around 63, accounting for overlaps and repetitions, as per the publication ‘The Particularly Vulnerable Tribal Groups of India — Privileges and Predicaments’ by the Anthropological Survey of India
 
 
For Prelims: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.
For Mains: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation
 

Previous Year Questions

1. Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India:  (UPSC 2019)
1. PVTGs reside in 18 States and one Union Territory.
2. A stagnant or declining population is one of the criteria for determining PVTG status.
3. There are 95 PVTGs officially notified in the country so far.
4. Irular and Konda Reddi tribes are included in the list of PVTGs.
Which of the statements given above are correct?
A. 1, 2 and 3             B.  2, 3 and 4               C. 1, 2 and 4               D. 1, 3 and 4

Answer: C

2. With reference to the history of India, "Ulgulan" or the Great Tumult is the description of which of the following events? (UPSC 2020)

A. The Revolt of 1857
B. The Mappila Rebellion of 1921
C. The Indigo Revolt of 1859 - 60
D. Birsa Munda's Revolt of 1899 - 1900

Answer: D

3. When did the Tana’ Bhagat Movement start?  (Jharkhand Civil Service 2015) 
A. April 1912             B. April 1913     C.  April 1914          D.  April 1915
 
Answer: C
 
4. Consider the following statements about the Santhal Hool of 1855 - 56: (UPSC CAPF)
1. The Santhals were in a desperate situation as tribal lands were leased out
2. The Santhal rebels were treated very leniently by British officials
3. Santhal inhabited areas were eventually constituted separate administrative units called Santhal parganas
4. The Santhal rebellion was the only major rebellion in mid-19th century India.
Which of the statements given above is/are correct? 
A. 1 only         B. 2 and 3    C. 1, 3 and 4     D. 1 and 3 only
 
Answer: D
 
 
5. After the Santhal Uprising subsided, what was/were the measure/measures taken by the colonial government? (UPSC 2018)
1. The territories called 'Santhal Paraganas' were created.
2. It became illegal for a Santhal to transfer land to a non-Santhal.
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
 
6. The National Commission for Backward Classes (NCBC) was formed by insertion of Article ______ in the Constitution of India. (SSC CGL 2020) 
A. 328B         B.  338A            C. 338B            D. 328A
 
Answer: B
 
 
7. With reference to the Parliament of India, which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, by-laws, etc. conferred by the Constitution or delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation? (UPSC  2018)
 
A. Committee on Government Assurances
B. Committee on Subordinate Legislation
C. Rules Committee
D. Business Advisory Committee
 
Answer: B
 
8. Justice Madan B Lokur committee was set up to take steps to (Haryana Civil Services 2021)
A. Look into violation of environment rules.
B. Prevent stubble burning
C. Draft new water policy
D. Regulate digital lending
 
Answer: B
 
9. Match the pairs -  (Committees on Media) (MPSC 2019)
(A) (Name)                                    (B) (Year)
(a) Chanda Committee                   (i) 1982
(b) Kuldip Nayar Committee        (ii) August, 1977
(c) Verghese Committee               (iii) March, 1977
(d) P.C. Joshi Committee              (iv) 1964
 
1. (a) – (i), (b) – (ii), (c – (iii), (d) – (iv)
2. (a) – (i), (b) – (iii), (c – (ii), (d) – (iv)
3. (a) – (iv), (b) – (iii), (c – (ii), (d) – (i)
4. (a) – (iv), (b) – (ii), (c – (iii), (d) – (i)
 
Answer: 3
 
10. Consider the formation of the following States and arrange these in chronological order :  (UPPSC Combined State Exam 2021)
1. Goa
2. Telangana
3. Jharkhand
4. Haryana
Select the correct answer from the codes given below.
A. 1, 2, 3, 4       B. 4, 1, 3, 2       C. 3, 2, 4, 1          D. 4, 3, 1, 2
 
Answer: 2
 
Source: Indianexpress
 
 

EUROPEAN FREE TRADE ASSOCIATION (EFTA)

 
 
1. Context
 
 
A senior team of negotiators from the European Union (EU) is in New Delhi from 3 to 7 November 2025 for negotiations with Indian counterparts on the proposed India–EU Free Trade Agreement (FTA). The engagements aim to resolve key outstanding issues and advance the agreement toward a balanced and equitable framework that benefits both sides.
 
 
 2. About European Free Trade Association
 

The European Free Trade Association (EFTA) is an intergovernmental organization that aims to facilitate free trade and economic cooperation among its member states. EFTA was established on May 3, 1960, as an alternative trade bloc to the European Economic Community (EEC), which later evolved into the European Union (EU). The founding members of EFTA were Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the United Kingdom.

The key aspects of EFTA

EFTA comprises four member countries: Iceland, Liechtenstein, Norway, and Switzerland. The organization has experienced changes in membership over the years, with some countries joining or leaving.

  • EFTA's primary objectives include promoting free trade and economic cooperation among its member states. It aims to facilitate the reduction or elimination of barriers to trade in goods and services, enhance economic relations, and foster mutual understanding and collaboration in various economic sectors.
  • While EFTA is a distinct organization, its member states often have close economic ties with the European Union. EFTA countries have developed various agreements and arrangements with the EU to facilitate trade and economic cooperation. However, EFTA member states are not part of the EU Customs Union or the EU Single Market.
  • EFTA has engaged in numerous free trade agreements (FTAs) with countries and regions around the world. These agreements aim to reduce or eliminate tariffs and other trade barriers, promoting the flow of goods and services. EFTA countries have FTAs with countries in Europe, Asia, Africa, and South America.
  • The EFTA Surveillance Authority oversees the application of EFTA's rules in its member states. It monitors compliance with agreements, including ensuring that competition rules and other regulations are adhered to by member countries.
  • The EFTA Court serves as the judicial body for the EFTA states. It handles disputes related to the interpretation and application of EFTA law. The court's decisions contribute to the legal framework of EFTA's trade and economic agreements.
  • Over the years, EFTA has seen changes in its membership. Some countries have joined, while others have left. Accession to EFTA involves negotiations and the fulfillment of certain criteria, reflecting the organization's commitment to free trade and economic cooperation.
  • EFTA member countries have diverse and developed economies. They are known for their high living standards, economic stability, and competitiveness. The organization provides a platform for these countries to collaborate and engage in trade with partners around the world.
  • While trade is a central focus, EFTA member states also collaborate in other areas, including research and development, innovation, and cultural exchanges. The organization serves as a forum for discussing and addressing various economic and policy issues.

Main Goals of EFTA

  • To promote free trade and economic integration among its member states.
  • To strengthen member states' economies and improve their competitiveness on the global market.
  • To cooperate with other countries and international organizations to further liberalize trade and promote economic development.

Institutional Structure

  • The EFTA Council is the organization's highest governing body, consisting of representatives from each member state. It meets regularly to discuss and decide on important matters related to EFTA's objectives and activities.
  • The EFTA Secretariat, based in Geneva, Switzerland, provides administrative support and facilitates communication among member states.
  • EFTA actively engages in negotiations and establishes free trade agreements (FTAs) with various countries and regions outside the organization, contributing to the expansion of economic cooperation.

Current Status of EFTA

  • Despite not being part of the EU, EFTA members maintain close economic ties with the EU through a series of bilateral agreements.
  • They participate in the European Single Market and are part of the Schengen Area, allowing for the free movement of goods, services, capital, and people.
  • EFTA remains an important economic player in Europe, with a combined GDP of over €1 trillion and a population of over 13 million.
 

Benefits of EFTA Membership

  • EFTA's free trade agreements and common market have led to a significant increase in trade and investment between member states and their trading partners.
  • EFTA's focus on free trade and economic cooperation has helped to stimulate economic growth in member states.
  • By cooperating on research and development, innovation, and education, EFTA member states have become more competitive in the global market.
  • EFTA membership has contributed to a higher standard of living and greater prosperity for the citizens of member states.

 

Challenges for EFTA

  • The EU remains EFTA's largest trading partner, but it also poses a significant challenge. The EU's larger size and economic power give it an advantage in negotiations, and some EFTA businesses have expressed concerns about being at a disadvantage compared to their EU counterparts.
  • With the ongoing integration of the EU, EFTA needs to ensure that it remains relevant and attractive to potential members and trading partners. The association needs to continue to find ways to differentiate itself from the EU and to offer unique benefits to its members.
  • The global economy is constantly evolving, and EFTA needs to be able to adapt to these changes. The association needs to focus on emerging markets and new technologies to ensure that its members remain competitive in the long term.
 
3. The Way Forward
 
EFTA remains a vital economic force in Europe. The association is well-positioned to continue to prosper in the coming years, thanks to its strong member states, its focus on free trade and economic cooperation, and its adaptability. By continuing to adapt to the changing global economy and by finding ways to differentiate itself from the EU, EFTA can ensure that it remains a relevant and successful organization for its members in the years to come.
 
 

For Prelims: European Union, free trade, European Free Trade Association, European Economic Community
 
For Mains: 
1. Examine the impact of Switzerland's policy on tariff-free entry for all industrial goods on India's potential gains from the ongoing India-EFTA Free Trade Agreement negotiations. (250 Words)
2. Discuss the strategies and opportunities for EFTA to remain relevant, differentiate itself, and adapt to the evolving global economy. (250 Words)
 
Previous Year Questions
 

1.‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and (2017)

(a) European Union
(b) Gulf Cooperation Council
(c) Organization for Economic Cooperation and Development
(d) Shanghai Cooperation Organization

Answer (a)

2. Consider the following countries: (2018)

  1. Australia
  2. Canada
  3. China
  4. India
  5. Japan
  6. USA

Which of the above are among the ‘free-trade partners’ of ASEAN?

(a) 1, 2, 4 and 5
(b) 3, 4, 5 and 6
(c) 1, 3, 4 and 5
(d) 2, 3, 4 and 6

Answer (c)

3. The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as (2016)

(a) G20
(b) ASEAN 
(c) SCO 
(d) SAARC

Answer (b)

 
Source: The Indian Express
 

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