Daily Current Affairs MCQ: 21st October 2024 - UPSC MCQ

1. ASEAN-India Trade in Goods Agreement (AITIGA) - Correctly matched. This agreement was indeed signed to enhance bilateral trade between India and the ASEAN countries. This pair is correctly matched.

2. Comprehensive Economic Partnership Agreement (CEPA) with UAE - Incorrectly matched. While CEPA with the UAE was signed to enhance trade relations, it resulted in an increase in the trade deficit for India rather than reducing it. This pair is incorrectly matched.

3. Rule of Origin Regulations - Correctly matched. These regulations are implemented to ensure that goods are not rerouted through ASEAN countries to take advantage of trade agreements improperly, particularly to prevent the influx of goods from countries like China. This pair is correctly matched.

4. Just Energy Transition (JET) Initiative - Incorrectly matched. The JET initiative in the context of the question is focused on India's internal transition from coal, with significant financial requirements, but it does not specifically mention receiving international financial assistance like South Africa’s plan. This pair is incorrectly matched.

Thus, two pairs are correctly matched.

Statement-I correctly highlights that developed countries are expected to bear a significant portion of climate finance responsibilities due to their historical contribution to emissions. This responsibility is based on principles of equity and common but differentiated responsibilities in addressing climate change.
Statement-II accurately points out that developing nations often have fewer financial and technological resources to adapt to climate change or recover from associated disasters. This lack of resources underscores the need for support from developed countries in the form of climate finance to help developing nations achieve a balance between their developmental goals and climate action. Thus, Statement-II explains why developed countries are expected to shoulder a significant portion of climate finance responsibilities.

India's cautious approach in trade negotiations with smaller countries like Oman and Peru stems from concerns over the widening trade gap and the disproportionate benefits that past free trade agreements have provided to partner countries. This cautious strategy reflects a strategic shift in India's trade policy to address issues related to trade deficits and investment outflows.

(Note: The question involves understanding the rationale behind India's shift in trade negotiation strategy as outlined in the provided information.)

This question is of medium difficulty level as it requires interpreting the reasons behind India's altered approach in trade negotiations based on the content provided.

- Statement 1 is correct. The Unified Payments Interface (UPI) has indeed played a significant role in driving digital transactions, which contributed to nearly 50% of India's nominal GDP in the fiscal year 2022-23. This reflects the substantial impact of UPI on India's economic activities through digital payments.
- Statement 2 is incorrect. The Modular Open-Source Identity Platform (MOSIP) is not designed to build proprietary systems with high licensing fees. Instead, it is an open-source initiative that allows countries to develop their own digital identity systems without incurring high costs or relying on proprietary software. This is aimed at promoting secure and interoperable identity systems globally.
- Statement 3 is correct. The increase in bank account ownership from 25% in 2008 to over 80% can be attributed to initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), which facilitated the opening of bank accounts, and the Aadhaar system, which provided a verifiable identity for individuals. These efforts have been pivotal in enhancing financial inclusion in India.
Thus, statements 1 and 3 are correct, which makes Option C the correct answer.

To determine the correct answer, let's evaluate each statement independently based on the provided information:

1. Statement 1: "India's trade deficit with ASEAN has grown significantly, reaching approximately US$ 44 billion in 2023."
- This statement is correct. The data indicates that India's trade deficit with ASEAN has indeed expanded to about US$ 44 billion in 2023.

2. Statement 2: "The Comprehensive Economic Partnership Agreement (CEPA) with the UAE resulted in a decrease in India's trade deficit with the UAE."
- This statement is incorrect. The CEPA with the UAE actually led to an increase in India's trade deficit with the UAE, with the gap widening significantly after the agreement came into effect.

3. Statement 3: "India is reviewing its trade agreement with ASEAN to address tariff asymmetries and reduce trade deficits."
- This statement is correct. India is indeed reviewing its trade agreement with ASEAN, focusing on tariff asymmetries that have contributed to the trade deficit.

Given this analysis, the correct statements are 1 and 3. Therefore, the correct answer is Option B: 1 and 3 Only.

The UNFCCC defines climate finance as financial flows directed towards mitigating and adapting to climate change. This includes funding aimed at reducing greenhouse gas emissions and assisting vulnerable regions and communities in adjusting to climate change impacts. The primary goal is to support efforts that address the challenges posed by climate change globally.

Statement-I is accurate in highlighting the significant increase in imports from ASEAN due to trade agreements, which has indeed widened India's trade deficit. Statement-II correctly mentions India's strategic shift towards larger markets and geopolitically important countries to address trade imbalances. However, Statement-II does not directly explain the situation described in Statement-I but instead provides additional context regarding India's revised trade negotiation strategy. Hence, both statements are correct, but Statement-II does not directly elucidate Statement-I, making option (b) the correct answer.

1. Aadhaar Program: Correctly matched. Aadhaar is indeed the world's largest digital identity system, providing unique identification to over 1.3 billion people, facilitating access to various public services and enhancing social welfare schemes.

2. Unified Payments Interface (UPI): Correctly matched. UPI was launched in 2016 and has revolutionized the digital payment ecosystem in India, processing billions of transactions monthly and promoting cashless transactions.

3. Modular Open Source Identity Platform (MOSIP): Incorrectly matched. MOSIP is not an initiative by the Indian government but rather a not-for-profit initiative that provides an open-source platform for countries to develop their own digital identity systems. It is supported by various international organizations, including those from India.

4. Pradhan Mantri Jan Dhan Yojana (PMJDY): Correctly matched. The initiative has significantly increased bank account ownership in India, with the use of Aadhaar for verification, contributing to economic inclusion.

Thus, only three pairs are correctly matched, corresponding to Option C.

1. Statement 1 is correct. Climate finance indeed encompasses financial flows from various sources, including public, private, and alternative, aimed at both mitigating greenhouse gas emissions and adapting to climate change impacts. This definition aligns with the UNFCCC's understanding of climate finance.

2. Statement 2 is incorrect. The Copenhagen Accord did establish a commitment for developed nations to provide $100 billion annually in climate finance by 2020. However, this target has not been consistently met, with significant gaps between commitments and actual disbursements reported by several sources over the years.

3. Statement 3 is correct. A substantial portion of reported climate finance is provided as loans rather than grants. This has been a point of contention as it increases the debt burden on developing nations, which often prefer concessional loans or grants to alleviate financial strains.

Thus, the correct answer is Option C, as statements 1 and 3 are correct, while statement 2 is not.

The main objective of the Global Digital Compact (GDC) is to foster global collaboration in digital governance. This initiative, recently adopted at the United Nations Summit, aims to enhance cooperation among nations in managing and regulating digital public infrastructure. By promoting collaboration, the GDC seeks to advance the development and utilization of digital technologies for the benefit of all countries involved.