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India’s way forward: Services or manufacturing?

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Context: India's economic development strategy has been debated for a long time, with some arguing for a service-led growth model and others for a manufacturing-led model. The country's current development path has seen growth primarily in the service sector, with the manufacturing sector's share of output and employment plateauing at or below 20%.

Service sector model:

  • The service sector's growth occurs through rising demands for medical, legal, entertainment, accounting, and other personal services, driven by increasing personal incomes of residents and outsourcing of business processes by firms.
  •  However, the service sector has limitations, as it creates mostly low-value-added, low-skills jobs, which do not meet the aspirations of India's young workforce.

Challenges Encountered by the Service Sector in India:

  1. Regulatory Complications: Businesses in the service sector face obstacles due to intricate and frequently changing regulations, adding complexity to their operations.
  2. Infrastructure Limitations: The service sector is impeded by insufficient infrastructure, particularly in transportation and logistics, which can impede the smooth delivery of services.
  3. Shortages in Skilled Labor: Although India produces a substantial number of graduates and skilled professionals, there exists a gap between the workforce's skills and the specific demands of certain service sectors.
  4. Adoption of Technology: While significant strides have been made in the IT and software services sector, many other service industries lag in embracing technology to enhance efficiency and competitiveness. In the contemporary global service environment, digital transformation is imperative.
  5. Data Privacy and Security: In the digital era, heightened concerns about data privacy and security present challenges for service providers. Navigating complex data protection laws and ensuring the secure handling of customer data is crucial in this context.

Manufacturing-led model

  • The manufacturing-led model can provide more job opportunities and help India meet the aspirations of its young population.
  • The government's Production-Linked Incentive (PLI) scheme aims to incentivize private industry to scale up, but it remains to be seen whether these businesses will stay or leave after the incentive schemes end.

Challenges faced by manufacturing sector:

  1. Absence of technology and infrastructure: One of the foremost hurdles confronting the Indian manufacturing industry is the dearth of advanced technology and infrastructure. Numerous Indian manufacturers still depend on outdated methods, hindering their ability to compete globally. This deficiency in technology and infrastructure also poses challenges in meeting stringent global quality standards.
  2. Shortage of skilled workforce: Another significant obstacle for Indian manufacturing is the scarcity of proficient workers. While India boasts a vast workforce, a substantial portion lacks the requisite skills for modern manufacturing. This scarcity of skilled labor makes it challenging for manufacturers to adapt to the swiftly changing demands of the global market.
  3. Bureaucratic impediments: The manufacturing sector in India is hindered by bureaucratic obstacles, leading to production delays and increased costs. Acquiring essential permits and licenses, for instance, can be time-consuming, resulting in production setbacks. This, in turn, complicates manufacturers' ability to adhere to stringent deadlines set by global customers.
  4. Concerns about intellectual property rights: Indian manufacturers often grapple with the vulnerability of their intellectual property rights, as they may not be adequately protected against theft or infringement. This fear impedes innovation and the introduction of new products to the market, as manufacturers worry about the potential appropriation of their ideas.
  5. Competition from China: The persistent competition from China poses a formidable challenge to Indian manufacturers in the global arena. Chinese manufacturers maintain an edge in terms of technology, infrastructure, and scale, intensifying the competitive landscape for their Indian counterparts.

Which model is suitable for India?

  • India needs to combine both manufacturing and service sector models to address its job challenge.
  • It should focus on land and labor regulatory reforms, which are fiscally costless but entail political costs.
  • India needs to address its skill deficit by raising its investment in higher education.
  • This would involve incentivizing private industry to scale up.
  • The rise in modern services is seen as a potential driver for energizing manufacturing, and there are examples of multinationals and domestic services start-ups venturing into manufacturing.
  • The "Make in India" initiative was aimed at making India a global manufacturing hub, and it is important for the country to achieve a structural transformation of its industry. Therefore, the way forward for India may involve a balanced approach that leverages the strengths of both the manufacturing and service sectors to ensure sustainable and inclusive economic growth.

The blood management system needs a fresh infusion

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Context: The COVID-19 pandemic highlighted global health inequalities, prompting policymakers worldwide to advocate for enhanced global health infrastructure as a means to drive economic growth and ensure planetary well-being. However, amid these critical efforts, prioritizing access to blood and its products is deemed essential for establishing a robust global health architecture.

The issue of blood shortage

  • It is a global concern, with significant disparities in blood collection between countries. For instance, countries in the WHO African region collect only 5% of global donations, despite having 14% of the global population.
  • Similarly, India faces a perennial blood shortage, impacting critical healthcare services. The country collected around 1.27 crore blood units and faced a shortage of over six lakh units in 2019-20.
  • Misconceptions and myths surrounding blood donation are a significant barrier to voluntary blood donation. Many people refrain from donating blood due to the fear of infections, damaging their immunity, or assuming it to be a time-consuming process.
  •  
  • These misconceptions can be dispelled through targeted awareness initiatives, including social media campaigns and innovative tools such as multi-lingual comics.

Implications:

  • Blood shortages can have serious implications on the functioning of healthcare systems and can put lives at risk. For example, an automobile accident victim needs up to 50 units of blood, and the shortage in 2019-20 could have put approximately 12,000 accident victims' lives at risk.
  • Moreover, the deficit could impact 1,00,000 heart surgeries and approximately 30,000 bone marrow transplants.

Solutions:

  • To address this issue, countries need to focus on blood safety and availability, ensuring timely access to safe blood for all who need it.
  • The WHO provides policy guidance and technical assistance to countries for developing national blood systems.
  • It is crucial to strengthen the blood management ecosystem and encourage regular and voluntary blood donation.
  • The private sector can work closely with the government to launch dedicated awareness campaigns aimed at the grassroots.
  • Blood collection rates vary dramatically worldwide, with 81% of blood units collected annually in the United States, Canada, Europe, and Australia. This leaves low- and middle-income countries with an unmet need totaling over 100 million units each year.
  • The hub and spoke model:
    • Here high-volume blood banks act as a hub for smaller blood centers, is an innovative approach that can enhance blood availability and distribution, especially in Resource-constrained settings.
    • This model can optimize the utilization of blood and its products, streamline distribution, and reduce losses from expiration.
    • Additionally, it can improve accessibility to safe blood and its products in community health centers and smaller sub-district hospitals, particularly in geographically challenging areas.
    •  
    • The implementation of this model, along with PPPs, can help mitigate the global disparities in blood collection and contribute to addressing the critical shortage of blood available for transfusion, especially in LMICs.

Snow leopard

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Context: Sadyr Zhaparov, the president of Kyrgyzstan signed a decree to declare the snow leopard as the national symbol of Kyrgyzstan.

About Snow Leopard:

  • Scientific Name: Panthera uncia
  • Indicator Species: Snow leopards serve as crucial indicators of the mountain ecosystem's health due to their role as the top predator in the food web.
  • Habitat: Found in the mountains of central Asia and the Indian subcontinent, their habitat spans elevations from approximately 1,800 meters (6,000 feet) in winter to about 5,500 meters (18,000 feet) in summer.
  • Geographical Range: The snow leopard's range covers twelve countries, including Afghanistan, Bhutan, China, India, Kazakhstan, Kyrgyzstan, Mongolia, Nepal, Pakistan, Russia, Tajikistan, and Uzbekistan.
  • Geographical Range in India:
    • Western Himalayas: Jammu and Kashmir, Himachal Pradesh.
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    • Eastern Himalayas: Uttarakhand, Sikkim, and Arunachal Pradesh.
    • Hemis National Park (Ladakh): Recognized for its significant snow leopard population, Hemis National Park is also known as the Snow Leopard Capital of the world.
    • IUCN status: vulnerable

Global Conservation Initiatives for Snow Leopards:

  • Project Snow Leopard (PSL): Initiated in 2009, PSL aims to foster an inclusive and participatory approach to safeguarding snow leopards and their habitats.
  • Ministry of Environment Forest & Climate Change Recovery Program: Snow leopards are included in the list of 21 critically endangered species designated for the recovery program led by the Ministry of Environment Forest & Climate Change.
  • SECURE Himalaya:Funded by the Global Environment Facility (GEF) and the United Nations Development Programme (UNDP), SECURE Himalaya focuses on conserving high-altitude biodiversity and reducing the reliance of local communities on the natural ecosystem.
  • Global Snow Leopard and Ecosystem Protection (GSLEP) Programme: India has been actively participating in the GSLEP Programme since 2013, emphasizing global collaboration for snow leopard conservation.
  • Flagship Species Designation:The Government of India has recognized the snow leopard as a flagship species for the high-altitude Himalayas, indicating its significance in conservation efforts.

About Kyrgyzstan

  • Kyrgyzstan is a landlocked country in Central Asia.
  • Bordered by Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the south, and China to the east and southeast.

Bab el-Mandeb

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Context: British maritime security agency UKMTO reported explosions late Tuesday near a cargo ship in the strategic Bab el-Mandeb Strait, which separates the Arabian Peninsula from the Horn of Africa.

About Bab al-Mandab Strait

  • It is a strait that connects the Red Sea (northwest) with the Gulf of Aden and the Indian Ocean (southeast).
  • It is located between Arabia (northeast) and Africa (southwest).
  • It is an important strategic connection in the marine commerce route connecting the Mediterranean Sea to the Indian Ocean via the Red Sea and the Suez Canal.
  • It is one of the world's most important seaborne commodity shipping routes, primarily for crude oil and petroleum.
  • Yemen borders it on the Arabian Peninsula, and Djibouti and Eritrea border it on the African coast.

Buxa National Park

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Context: Recently, a tiger has been observed in West Bengal’s Buxa National  Park. The previous  sighting of Tiger was after 23 years on December 12, 2021.

News:

Possible Factors Contributing to the Tiger Population Recovery:

  • Growth in the number of prey animals for tigers.
  • Increase in the size of grassland habitats, providing more suitable areas for tiger populations.
  • Measures implemented to regulate and control human-tiger interactions.
  • Initiatives aimed at curbing unauthorized entry and trespassing in tiger habitats.

About Buxa Tiger Reserve:

  • Situated in the Alipurduar district of North Bengal, Buxa Tiger Reserve's northern boundary aligns with the border of Bhutan
  • Established in 1983, Buxa Tiger Reserve gained the status of the 15th Tiger Reserve in India. It was later declared a National Park in January 1992.
  • In 2018, the state forest department, Wildlife Institute of India, and the National Tiger Conservation Authority introduced the "Tiger Augmentation and Monitoring Project" in Buxa.
  • The reserve is traversed by rivers such as Sankosh, Raidak, Jayanti, Churnia, Turturi, Phashkhawa, Dima, and Nonani.
  • Characterized by Moist Tropical Forest, Buxa Tiger Reserve features diverse and rich vegetation.
  • Among the notable species found in the reserve are the Indian Tiger (Panthera tigris tigris), Leopard (Panthera pardus), Clouded Leopard (Neofelis nebulosa), Jungle Cat (Felis chaus), and others.

Tiger Conservation Status:

  • Indian Wildlife (Protection) Act, 1972: Designated under Schedule I, providing the highest level of legal protection.
  • International Union for Conservation of Nature (IUCN) Red List: Classified as "Endangered," signifying a high risk of extinction in the wild.
  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES): Listed in Appendix I, indicating the highest level of protection against trade to prevent exploitation.

International Court of Justice (ICJ)

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South Africa has moved the International Court of Justice (ICJ), invoking the Genocide Convention, 1948, against Israel accusing it of committing genocide during its ongoing military campaign in Gaza.

What is ICJ?

  • World’s court- It is the principal judicial organ of United Nations it is the only principal organ of UN to be not located in New York.
  • Composition-ICJ is composed of 15 judges elected to 9-year terms of office by the UN General Assembly (UNGA) and the Security Council.
  • Of the 15 judges, it is mandated that -

 Judges

 Countries

 3

 Africa

 2

 Latin America and the Caribbean

 3

 Asia

 5

 Western Europe and other states

 2

 Eastern Europe

Election- They are conducted triennially, and five among these 15 judges are elected every three years for a nine-year term to ensure a sense of continuity especially in pending cases.

  • The President and Vice-President are elected by secret ballot to hold office for 3 years.

Jurisdiction- There are two types of jurisdiction.

    • Contentious jurisdiction - Resolving legal disputes between consenting states
    • Advisory jurisdiction - The UNGA, the Security Council and other specialized bodies of the organization can request the ICJ for an opinion on a legal question
  • Role-It hears cases related to war crimes, illegal state interference, ethnic cleansing, and other issues.
  • It settles legal disputes between states and gives advisory opinions to the UN and its specialized agencies.

Legal disputes-The Court settles legal disputes between nations only and not between individuals, organizations and private enterprises in accordance with international law.

  • State’s consent-The Court can only hear a dispute when requested to do so by one or more States, it cannot deal with a dispute of its own motion.
  • Verdict- The judgment is final, binding on the parties and without an appeal, though the rulings of the ICJ are binding some countries ignored them, as ICJ has no direct means of enforcing its orders.
  • Wider scope- It has rules on cases involving human rights and environmental violations.
  • Increased participation of states- It has attracted more states to accept its jurisdiction by using dispute settlement clauses or special agreements.
    • For example, Romania and 30 other states have joined a declaration supporting the court’s authority.
  • Successful reparations- Uganda paid 325 million dollars to the Democratic Republic of the Congo for its military intervention.
  • Advisory role- The ICJ has provided legal opinions on various issues of global concern, such as nuclear weapons, the Israeli wall, and the occupation of Palestinian territories.

Why South Africa approached ICJ?

  • South Africa has sought the indication of provisional measures to stop the genocide by invoking Genocide Convention, 1948 to which both countries are signatories.
  • It accused Israel of causing hunger, dehydration, and starvation in Gaza by impeding sufficient humanitarian assistance and failing to provide shelter to Palestinians in Gaza, including its 1.9 million internally displaced people.
  • South Africa argues that urgent relief is necessary to protect against further, severe, and irreparable harm to the rights of the Palestinian people which continue to be violated, and to prevent any aggravation or extension of the dispute.
  • It wants Israel to report on the measures taken to implement the court’s order, and to refrain from acts and to immediately suspend all military operations in Gaza which might aggravate the dispute.
  • Israel denied any genocidal intent and claimed its right to self-defence against Hamas which used civilians as human shields. 
  • It said its actions were lawful and not aimed at destroying the Palestinian people and accused South Africa for relying on statistics provided by Hamas about causalities.
  • It argued that the unintended civilian casualties occurring during the pursuit of lawful military objectives do not indicate genocidal intent.

Convention on the Prevention and Punishment of the Crime of Genocide, 1948

  • It is an instrument of international law that codified for the first time the crime of genocide in 1948.
  • As of 2022, the convention has 152 state parties.
  • The Convention calls on all States to maintain vigilance, and push for action to prevent genocide, everywhere.
  • According to the convention, genocide means any of the following acts committed with intent to destroy a national, ethnical, racial or religious group, as such:
  • Killing members of the group
  •  Causing serious bodily or mental harm to members of the group
  • Deliberately inflicting on the group conditions of life calculated to bring about its physical destruction in whole or in part
  •  Imposing measures intended to prevent births within the group
  • Forcibly transferring children of the group to another group.
  • A genocide is a crime that can take place both in time of war as well as in time of peace.
  • India ratified the convention in 1959.

Gulf of Aden

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Indian Navy’s destroyer INS Visakhapatnam responds to distress call from drone-hit merchant vessel in Gulf of Aden.

  • It is a deep-water basin that forms a natural sea link between the Red Sea and the Arabian Sea.

Geography – It is an arm of the Indian Ocean that runs in a west-east direction, is located between Yemen on the south coast of the Arabian Peninsula and Somalia and Djibouti in Africa.

Strategic importance - In the northwest it connects with the Red Sea through the Bab el Mandeb straits making it strategically important.

  • Climate – It is strongly influenced by the upwelling of cool, nutrient-rich waters during the southwest and northeast monsoons and is characterized by a prevailing high-energy climate.
  • Biodiversity – Its nutrient rich water support for high levels of biological productivity and it also flows into the Red Sea making the southern part of the Red Sea higher productivity region.
  • Economy - Its coastline lacks large-scale fishing facilities but supports many fishing towns, as well as the major ports Aden and Djibouti.

Jeddah Convention of 1982, the ‘Regional Convention for the Conservation of the Red Sea and Gulf of Aden Environment’ aims at protection of coastal and marine environment from pollution and the rational management of living marine resources that also lead to establishment of PERSGA (Programme for the Environment of the Red Sea and Gulf of Aden) in 1995.

Indian Navy currently has around 12 warships deployed for anti-piracy and maritime security duties over Arabian Sea.

16th Finance Commission- Article-280

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Cabinet approves creation of 3 officer-level posts for 16th Finance Commission.

  • Chairman – Arvind Panagariya
  • Secretary – Ritvik Ranjanam Pandey
  • 3 new posts – Created at the level of Joint Secretary i.e. 2 posts of Joint Secretary and 1 post of Economic Adviser who are required to assist the Commission in carrying out its functions.
  • Functions – To suggest the principle of tax devolution between the Centre and States and revenue augmentation measures.
  • To review the present arrangements for financing disaster management initiatives with reference to the funds constituted under the Disaster Management Act, 2005.
  • Reporting – It would submit its report to the President by October 31, 2025 and it would be for 5 years commencing April 1, 2026.

Finance Commission of India (FC)

  • It is a quasi-judicial constitutional body under Article 280 of Indian constitution.
  • Constituted by – The President of India every 5th year or at such earlier time as he considers necessary.
  • 1st FC – 1951 chaired by
  • Role – To make recommendations regarding
    • Sharing of central taxes with states
    • Distribution of central grants to states
    • Measures to improve the finances of states to supplement the resources of panchayats and municipalities, and
    • Any other matter referred to it.
  • Limitations – Recommendations are only advisory in nature and hence, not binding on the government.

The erstwhile 15th Finance Commission under N.K. Singh had recommended that States be given 41% of the divisible tax pool of the Centre during 5-year period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission.

Right to Food

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Recently, Indian government argued for people’s right to food in Supreme Court by supporting Genetically Modified (GM) crops as against the alleged environmental damage by it.

  • Right to Food – It implies the right to food at appropriate nutritional levels and the quantum of relief to those in distress must meet those levels in order to ensure that this right is actually secured and does not remain a theoretical concept.
  • It is inherent to a life with dignity according to National Human Rights Commission (NHRC).
  • Legality – Article 21 of the Constitution of India should be read with Articles 39(a) and 47 to ensure the effective realization of right to food.
    • Article 21 – Fundamental right to life and personal liberty.
    • Article 39(a) – State to direct its policies towards securing that all its citizens have the right to an adequate means of livelihood.
    • Article 47 – State to raise the level of nutrition and standard of living of its people as a primary responsibility.
  • Thus it is a guaranteed Fundamental Right which is enforceable under Article 32.
  • Extended rights – Right to free from hunger and that starvation constitutes a gross denial and violation of this right.

SDG  2 is about creating a world free of hunger by 2030.

 Edible Oil in India

  • It is released by Directorate of Economic and Statistics under the Department of Agriculture and Farmers’ Welfare.
  • Total edible oil demand – 24.6 million tonnes (2020-21).
  • Total imports – 54% of the total edible oil demand (2020-21) and 55.76% in 2022-23.

Serious Fraud Investigation Office (SFIO)

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The Supreme Court, while dismissing a petition for quashing a complaint filed by the Serious Fraud Investigation Office (SFIO), has left a crucial question of law open i.e., whether SFIO are police officer(s) under the Code of Criminal Procedure, 1973.

Serious Fraud Investigation Office (SFIO)

  • It is a corporate fraud investigating agency set up by the Government of India.
  • The SFIO was established on 21st July, 2015, and operates under the Ministry of Corporate Affairs.
  • Section 211 of the Companies Act, 2013, accorded a statutory status to the SFIO.
  • Objective: The core objective of the SFIO is to be an investigative and law enforcement agency to detect and prosecute or recommend to prosecute white-collar frauds or crimes.
  • Types of Investigations: SFIO will usually take up the following types of cases sent by the Central Government:
    • Complex cases needing investigation across multi-discipline and inter-departmental affairs.
    • Cases with a huge monetary impact on the public.
    • Cases where investigation can lead to the cleaning up of systems and the implementation of changes in laws and procedures.
    • Serious fraud cases sent by the Department of Company Affairs.
  • SFIO can also take up cases on its own only when decided by the Director of the SFIO, and also giving the reasons for taking up the case in writing.
  • Upon assignment of a case to the SFIO, no other investigative agency can proceed with an investigation for any offence under the Act.
  • The Central Government can ask the SFIO to investigate a company in the following cases:
    • When it receives a report from the Registrar or Inspector under Section 208 of the Companies Act 2013.
    • When the company itself passes a special resolution and requests an investigation.
    • Where there is a huge monetary impact on the public or for other large-scale public interest cases.
    • When any Central Government or State Government department makes a request for an investigation.
  • Organisational Structure:
    • It consists of experts in the fields of accountancy, forensic auditing, law, information technology, investigation, company law, capital markets and taxation.
    • SFIO is headed by a Director as Head of Department in the rank of Joint Secretary to the Government of India. 
    • The Director is assisted by Additional Directors, Joint Directors, Deputy Directors, Senior Assistant Directors, Assistant Directors Prosecutors, and other secretarial staff. 

Headquarters: The headquarters of SFIO is in New Delhi, with five regional offices in Mumbai, New Delhi, Chennai, Hyderabad, and Kolkata.

Forensic auditing?

A forensic audit is an analysis and review of the financial records of a company or person to extract facts, which can be used in a court of law. Forensic auditing is a specialty in the accounting industry, and most major accounting firms have a department of forensic auditing. Forensic audits include the experience in accounting and auditing practices as well as expert knowledge of forensic audit's legal framework.

W1935

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  • W1935 is a brown dwarf star that is 47 light-years away from Earth.
  • It is the 1st auroral candidate outside of the solar system that has been identified through methane emission signatures.
  • It is also the coldest auroral candidate outside of our solar system, with a temperature of about 400 degrees Fahrenheit (200 degrees Celsius).

Astronomers using NASA's James Webb Space Telescope discovered W1935.

Vondy

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  • It is an all-in-one AI platform that can create content as well as enhance productivity.
  • The application has been developed by New York-based software engineer Rohit Das and New Jersey-based software engineer David Laub.

Vondy is free and there are no message limits unlike ChatGPTand also has an AI assistant that’s a social media influencer.

Green Hydrogen from Whisky Distillery

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  • Researchers at the Heriot-Watt University in Edinburgh used wastewater from the whisky distilling industry to produce green hydrogen, which is a type of sustainable fuel.

They did this by developing a new nanoscale material, nickel selenide that allowed distillery wastewater to replace fresh water in the green hydrogen production & it treats the wastewater.

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