UPSC Daily Current Affairs: 14 November 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS3/Economy

RBI retains SBI, HDFC, ICICI as D-SIBs

Source: The Indian Express

Why in news?

The Reserve Bank of India (RBI) has reaffirmed the classification of State Bank of India, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs), indicating their significance in the banking sector and the economy as a whole. This designation highlights their status as institutions that are "Too Big To Fail," meaning their operation is crucial for the stability of the financial system. They remain classified in the same risk category as in the 2023 D-SIB list.

About D-SIBs

• D-SIBs are banks that are deeply integrated into the financial system and have complex operational structures.
• Their failure would likely lead to significant economic turmoil and panic.
• Governments are often expected to provide support to these banks during crises, reinforcing the belief that they are "Too Big To Fail" (TBTF).
• This perception can lead to easier access to funding but may also promote risk-taking behaviors and diminish market discipline.
• D-SIBs are subjected to specific regulatory requirements aimed at mitigating systemic risks and addressing moral hazard issues.

Need for the Creation of D-SIBs

• The RBI established D-SIBs to tackle systemic risks and moral hazards associated with these significant banks.
• Additional regulatory measures are imposed to prevent competitive imbalances and future financial distress.

Background – Framework for D-SIBs

• In July 2014, the RBI introduced a framework for managing D-SIBs, which has mandated annual disclosures since 2015.
• These banks are categorized into different buckets based on their Systemic Importance Scores (SISs).

Regulations for D-SIBs

• Depending on the assigned bucket, D-SIBs must maintain an additional Common Equity Tier 1 (CET1) capital requirement.
• This capital measure is essential for ensuring the financial strength of banks from a regulatory standpoint.
• D-SIBs are required to set aside more capital and reserves to protect their operations.
• Foreign banks operating in India that are recognized as Global Systemically Important Banks (G-SIBs) are also subject to maintain a CET1 capital surcharge based on their risk-weighted assets (RWAs) in India.

Two-Step Process for Selecting D-SIBs

• The RBI utilizes a two-step procedure to determine the systemic importance of banks.
• Initially, a sample of banks is selected, excluding smaller institutions to minimize data overload.
• Only banks that constitute a certain percentage of GDP are considered, as smaller banks are viewed as lower risk.
• Banks with a size exceeding 2% of GDP are included in this assessment.
• Following the selection, a composite score is calculated using various indicators.
• Banks that surpass a specific threshold are classified as D-SIBs and allocated to different buckets based on their systemic importance, with those in lower buckets facing a smaller capital surcharge.

Which Banks Have Been Classified as D-SIBs by the RBI?

• The RBI has confirmed the status of SBI, HDFC Bank, and ICICI Bank as D-SIBs, continuing their classification from the 2023 list.
• SBI and ICICI Bank were initially designated as D-SIBs in 2015 and 2016, respectively, while HDFC Bank was added in 2017.
• SBI is categorized in bucket 4, HDFC Bank in bucket 3, and ICICI Bank in bucket 1.

Capital Requirements for D-SIBs

• The RBI imposes additional CET1 capital requirements on D-SIBs according to their bucket assignments, ranging from 0.20% to 0.80% of their risk-weighted assets (RWAs).
• Currently, SBI's additional CET1 requirement is 0.80%, HDFC Bank's is 0.40%, and ICICI Bank's is 0.20%.
• G-SIBs with branches in India are required to maintain a CET1 surcharge based on their Indian RWAs, as determined by their home regulator.

GS3/Economy

World Intellectual Property Indicators

Source: The Economic Times

Why in news?

The World Intellectual Property Organization (WIPO) has released the World Intellectual Property Indicators (WIPI) 2024, highlighting global trends in intellectual property (IP) filings.

About

• The report indicates substantial growth in applications for patents, trademarks, and industrial designs across leading economies.

Highlights of the report

• India has achieved a position among the global top 10 for all three major types of Intellectual Property (IP) rights: patents, trademarks, and industrial designs.
• In 2023, India experienced the fastest growth in patent applications, with a remarkable increase of 15.7%, marking the fifth consecutive year of double-digit growth.
• India ranks sixth globally for patents, with a total of 64,480 applications filed, of which over half (55.2%) were submitted by residents—this is a first for the country.
• The report shows a consistent rise of 36.4% in India's industrial design applications, reflecting a growing focus on product design and the creative industries.
• The top three sectors contributing to industrial design filings are:
  • Textiles and Accessories
  • Tools and Machines
  • Health and Cosmetics
• Between 2018 and 2023, both patent and industrial design applications more than doubled in India.
• The patent-to-GDP ratio has significantly improved, increasing from 144 to 381 over the past decade, indicating that IP activities are expanding in tandem with economic growth.
• India ranked fourth in the world for trademark filings, showing a 6.1% increase in 2023. Nearly 90% of these filings were made by residents, particularly in sectors such as:
  • Health (21.9%)
  • Agriculture (15.3%)
  • Clothing (12.8%)
• The Indian trademark office boasts the second-largest number of active registrations globally, with over 3.2 million trademarks in force, illustrating the country's robust position in brand protection.
• Globally, a record of 3.55 million patent applications were filed in 2023, representing a 2.7% increase from 2022, with significant contributions from leading economies in Asia.
• This global increase in patent applications was primarily driven by residents of major countries including China, the United States, Japan, South Korea, and India.

GS3/Health

What is Walking Pneumonia?

Source: CNN

Why in News?

In recent weeks, doctors have reported cases of "walking pneumonia," a mild yet persistent lung infection that can mimic symptoms of a common cold.

About Walking Pneumonia

• Walking pneumonia is classified as atypical pneumonia.
• It is primarily caused by the bacterium Mycoplasma pneumoniae, although other bacteria and viruses can also be responsible.
• The symptoms often resemble those of a common cold or a mild respiratory infection, which include:
  • Cough
  • Sore throat
  • Low-grade fever
  • Fatigue
• While walking pneumonia does not typically lead to severe health issues, it can still be bothersome, with symptoms potentially lasting for weeks if not treated.
• In contrast to typical pneumonia, which can cause significant lung inflammation and breathing difficulties, walking pneumonia is generally less severe.
• This lesser intensity allows individuals to continue with their daily activities, leading to its name, which originated in the 1930s.
• It is also referred to as "silent pneumonia" since some individuals may not exhibit noticeable symptoms, even if X-rays reveal fluid in the lungs.

Transmission

• Walking pneumonia is contagious and spreads through airborne droplets.
• Common transmission modes include:
  • Coughing
  • Sneezing
  • Speaking

Treatment
Treatment for walking pneumonia is usually manageable with:

• Rest
• Increased fluid intake
• Antibiotics, when necessary

GS3/Environment

Sukhna Lake

Source: HT

Why in news?

The Union Ministry of Environment, Forest and Climate Change has recently issued a notification designating an area ranging from 1 km to 2.035 km around the Sukhna Wildlife Sanctuary on the Haryana side as an Eco-Sensitive Zone (ESZ).

About Sukhna Lake

• Sukhna Lake is an artificial lake situated in Chandigarh, India.
• It is located at the foothills of the Shivalik hills, which are part of the Himalayan range.
• The lake was formed in 1958 by constructing a dam on the Sukhna Choe, a seasonal stream originating from the Shivalik Hills.
• It has been recognized as a National Wetland by the Government of India.
• The lake's catchment area features rugged terrain with steep slopes, consisting mainly of alluvial sandy soils mixed with clay, which are particularly prone to erosion due to water runoff.
• The inflow of water into Sukhna Lake is highly sediment-laden, contributing to its ecological challenges.

Sukhna Wildlife Sanctuary

• The Sukhna Wildlife Sanctuary is adjacent to Sukhna Lake, covering approximately 26 square kilometers.
• This sanctuary is a habitat for a diverse range of wildlife, including various species of birds, mammals, and reptiles.
• It serves as a sanctuary for numerous exotic migratory birds, particularly during the winter months, including species such as the Siberian duck, storks, and cranes.

GS2/International Relations

America’s shifting trade war

Source: The Economic Times

Why in News?

China’s rapid economic rise as a major exporter has led to trade tensions, with the US launching tariff measures during Donald Trump’s presidency. As China’s trade surplus nears $1 trillion, Trump’s potential second term might witness more intense trade war. Trump's approach resembles past US actions against Japan in the 1970s, targeting similar issues like “state support” and “intellectual property theft.” While Trump’s focus on China might indirectly benefit India due to its regional position, experts suggest India should support World Trade Organization (WTO) reforms and a rules-based trade order to ensure sustainable growth. Yet, India faces immediate competitive challenges from the US, especially in the pharmaceutical and services sectors.

About

• A trade war occurs when countries impose tariffs or other trade barriers on each other to protect domestic industries or retaliate against trade practices perceived as unfair. 
• These actions often lead to increased costs for consumers and disrupt global supply chains. Recent notable examples include the US-China trade war, where the US imposed tariffs on Chinese goods to address trade imbalances and allegations of intellectual property theft, prompting retaliatory tariffs from China.

Implications

Boost to Domestic Industries

• Tariffs on foreign goods can protect domestic industries from international competition.
• For example, the US steel industry saw temporary benefits from tariffs on imported steel, as domestic producers faced less competition.

Encourages Local Investment

• Trade barriers can incentivize countries to invest in domestic production.
• For instance, China has accelerated its focus on technological self-reliance to reduce dependency on US technology amid trade tensions.

Higher Consumer Prices

• Tariffs increase the cost of imported goods, which often gets passed on to consumers.
• During the US-China trade war, American consumers faced higher prices on goods like electronics and household items.

Disruption of Global Supply Chains

• Trade wars can disrupt international production networks, leading to delays and inefficiencies.
• The 2018 US-China trade war impacted global tech and automotive industries as critical components sourced from China faced tariffs, causing delays.

Economic Slowdown

• Prolonged trade conflicts can harm global economic growth.
• For instance, the IMF revised global growth projections downward during the US-China trade tensions due to reduced investment and uncertainty.

Background - Overview of US Trade War and Tariff Hikes

• US President-elect Donald Trump is poised to escalate trade tensions by imposing significant tariff hikes, with proposals for a 10%-20% increase on all imports and a 60% hike on Chinese goods. While tariff hikes are not new, the scale of this move may have global consequences. 
• The aim of these tariffs is to protect domestic industries and address trade imbalances, but they could lead to retaliatory tariffs and economic disruptions. Past tariffs have primarily targeted China, Mexico, Canada. However, experts believe India might become the next target.

Potential Impact on India

• If Trump's administration intensifies trade friction, India may face negative consequences.
• US tariffs on sectors like pharmaceuticals, automobiles, textiles, steel, and aluminum could harm Indian exporters, especially in industries where India has a competitive advantage.
• India’s trade surplus with the US ($35.3 billion in FY24) could also be affected.
• This surplus could attract attention from the US, particularly if it views the trade imbalance as detrimental to US industries.
• Under Trump 2.0, India could face renewed pressure, especially in areas like intellectual property rights, labor standards, and digital trade policies.
• However, if Trump's push for decoupling from China succeeds, India may benefit by attracting foreign investment and becoming a more prominent player in supply chains, particularly in emerging technologies.
• Indian exporters might be able to fill the gap left by Chinese goods in global markets, especially in sectors where India has a competitive advantage, such as textiles, pharmaceuticals, and IT services.

India’s options

• Experts have said that tariff retaliation might be India's only effective response to new US taxes.
• This approach worked when India imposed tariffs on US agricultural products in retaliation for US steel and aluminum tariffs, resulting in a settlement under the Biden administration.
• China has become India’s largest trading partner, surpassing the US, and India’s trade with Russia has increased significantly, with a goal of reaching $100 billion by 2030.
• These growing trade relationships provide India with opportunities for diversification and economic growth beyond its dealings with the US.

GS3/Defence & Security

Exercise Sea Vigil

Source: The Economic Times

Why in News?

The Indian Navy is preparing to carry out the fourth edition of the nationwide Coastal Defence Exercise 'Sea Vigil-24' on the 20th and 21st of November 2024.

About Exercise Sea Vigil

• Exercise Sea Vigil is a National Level Coastal Defence Exercise that was initiated in 2018. Its main purpose is to evaluate the various measures that have been implemented to strengthen maritime security since the 26/11 attacks.
• The primary goal of 'Sea Vigil' is to activate the Coastal Security framework across India and to assess the effectiveness of the country's Coastal Defence strategies.
• This year’s exercise will engage six ministries and 21 different organizations and agencies.

Focus Areas of the Exercise

• The exercise will concentrate on bolstering security for coastal assets, which include:
  • Ports
  • Oil rigs
  • Single Point Moorings
  • Cable Landing Points
  • Critical coastal infrastructure
  • Protection of coastal populations
• This edition will see participation from other branches of the armed forces, specifically the Indian Army and Air Force, alongside a significant deployment of ships and aircraft, thereby increasing the exercise's intensity.

Engagement with Coastal Communities

• The comprehensive nature of this exercise will involve all aspects of coastal security infrastructure and engage various maritime stakeholders, including:
  • Local fishing communities
  • Coastal residents
  • Students from the National Cadet Corps (NCC) and Bharat Scouts and Guides
• One of the key objectives of the exercise is to raise awareness among coastal communities regarding maritime security, enhancing their involvement in ongoing security measures.

Significance of the Exercise

• Exercise Sea Vigil is a notable national initiative that provides a comprehensive evaluation of India’s maritime defense and security capabilities.
• This exercise serves as a precursor to the Theatre Level Readiness Operational Exercise (TROPEX), which the Indian Navy conducts every two years.

GS3/Health

Cardiovascular Kidney Metabolic Syndrome

Source: The CKM syndrome as the price of modernity

Why in News? 

An unhealthy lifestyle and the influence of globalization are silently shaping a major global health issue called Cardiovascular Kidney Metabolic (CKM) syndrome.

About

• Cardiovascular Kidney Metabolic Syndrome is a health condition defined by the interconnections among obesity, diabetes, Chronic Kidney Disease (CKD), and Cardiovascular Disease (CVD).
• CVD includes ailments such as heart failure, atrial fibrillation, coronary heart disease, stroke, and peripheral artery disease.
• The term "metabolic" refers to the body's process of obtaining energy from food.
• Obesity and Type 2 diabetes are considered metabolic disorders.
• Each of the components of CKM syndrome can exacerbate or trigger the others, creating a cycle of health issues.

Cause

• CKM syndrome is often caused by excess adipose tissue or abnormal body fat.
• This type of fat releases harmful substances that can lead to inflammation and damage to vital organs such as the heart, kidneys, and arteries.
• Inflammation can reduce the effectiveness of insulin, contributing to further metabolic issues.
• It also promotes the development of arterial plaque and kidney damage, worsening the overall health status.

Symptoms

• Common symptoms of CKM syndrome include:
• Chest pain, which may indicate heart problems.
• Shortness of breath, signaling potential cardiovascular issues.
• Syncope, or fainting, which may occur due to inadequate blood flow.
• Swelling in extremities such as legs, feet, hands, or ankles, indicating possible fluid retention or kidney dysfunction.

Treatment

• In the early stages of CKM syndrome, lifestyle modifications may suffice, such as:
• Increasing physical activity to improve overall health.
• If the condition progresses to a middle stage, medication may be necessary to control:
• Blood pressure, cholesterol levels, and blood sugar.

GS3/Environment

State of the Climate 2024 Report

Source: State of the Climate 2024 Update for COP29

Why in News?

State of the Climate 2024 Report once again issues a Red Alert at the sheer pace of climate change in a single generation, turbo-charged by ever-increasing greenhouse gas levels in the atmosphere.

About Status of the Climate 2024 Report

• Released by the World Meteorological Organisation (WMO) during the United Nations Climate Conference (COP29) in Baku.

Highlights

• The year 2024 is projected to be the warmest year recorded, following a series of exceptionally high monthly global mean temperatures.
• From January to September 2024, the global average temperature was 1.54 degrees above pre-industrial levels, significantly influenced by the El Niño weather phenomenon.
• The period from 2015 to 2024 is expected to be the warmest decade on record.
• Ocean temperatures have been increasing at an alarming rate over the past twenty years, with oceans set to continue warming irreversibly.
• In 2023, greenhouse gas emissions reached their highest levels ever, with real-time data suggesting this trend continued into 2024.
• Carbon dioxide levels rose by 51% from 1750 to 2023, indicating a significant increase in heat-trapping gases.
• The world's oceans absorb about 90% of the excess heat generated by global warming, reaching record temperatures in 2023, and preliminary data for 2024 indicates this trend is ongoing.
• Globally, glaciers are losing ice at an unprecedented rate, with 2023 recording the fastest glacial retreat since records began 70 years ago, equivalent to losing five times the volume of water in the Dead Sea.
• This rapid ice loss is particularly noticeable in North America and Europe and is contributing to rising sea levels.
• Between 2014 and 2023, the average global sea level rose at a rate of 4.77 mm per year, which is more than double the rise observed between 1993 and 2002.
  

GS3/Environment

Amorphophallus Titanum

Source: Kew Gardens

Why in News?

People in Geelong city have flocked to observe a fascinating occurrence – the blooming of the Amorphophallus Titanum, commonly known as Titan Arum.

About

• Amorphophallus Titanum, known as Titan Arum, is renowned for its rarity, blooming only once every decade.
• This plant is considered one of the largest flowers globally, reaching heights of over 10 feet.
• It is also referred to as the Corpse Flower due to its unique odor.
• First described by the Italian botanist Odoardo Beccari in 1878, this species has intrigued botanists and the public alike.

Features

• The Titan Arum typically blooms once a decade, with each flowering event lasting only 24 to 48 hours.
• To attract its pollinators, which include carrion-feeding bees and flies, it emits a scent reminiscent of decomposing flesh.
• The flower's dark red interior, revealed when it fully opens, resembles the appearance of raw meat, enhancing its attraction to pollinators.
• The spadix, a tall and crooked structure at the center, can warm up, simulating the temperature of a warm, decaying body.
• The unique structure of the flower features a pale yellowish spadix rising from a dark red, waxy spathe that resembles an upturned meat skirt.

Habitat

• The Titan Arum thrives in the rainforests of western Sumatra, Indonesia, where it is locally known as bunga bangkai (with bunga meaning flower and bangkai meaning corpse).
• This plant typically grows on limestone hills, where environmental conditions support its unique lifecycle.

Conservation status

• The International Union for Conservation of Nature (IUCN) has classified the Amorphophallus Titanum as Endangered, highlighting the need for conservation efforts to protect this rare species.

GS3/Environment

What is Crinum andhricum?

Source: New species of flower plant blooms in dry, rocky forests of Alluri district

Why in News?

Recently, botanists have identified a new species of flowering plant named 'Crinum andhricum' in the Eastern Ghats of Andhra Pradesh.

About Crinum andhricum

• Crinum andhricum is a newly discovered species.
• This species was recorded specifically from the Eastern Ghats.
• It was named in honor of Andhra Pradesh, the state where it was first identified.
• It belongs to the Amaryllidaceae family.
• This discovery adds to India's Crinum species, now totaling 16, with many being endemic to the country.

Features

• The plant exhibits unique characteristics, such as wider, oblanceolate perianth lobes (the outer segments of the flower).
• It produces a notable number of flowers per cluster, with each cluster yielding between 12 and 38 flowers.
• Its pedicelled flowers (flowers with a stalk) distinguish it from other species found in the area.
• The flowers are waxy white and bloom from April to June.
• Crinum andhricum grows on a tall stem, which can reach up to 100 cm in height, and is well adapted to thrive in dry, rocky crevices of the Eastern Ghats.
• The leaves of the plant are large, elliptic in shape, and feature smooth, entire margins.

Conservation Status

• Due to its limited distribution and potential environmental threats, researchers have assigned Crinum andhricum a preliminary status of 'Data Deficient' according to IUCN guidelines.

GS3/Environment

What is the Wildlife Institute of India (WII)?

Source: WII experts hail success of ‘Project Cheetah’, Centre plans expansion to Gandhi Sagar Wildlife Sanctuary

Why in News?

Experts from the Wildlife Institute of India (WII) have asserted that the contentious 'Project Cheetah' in Kuno National Park, Madhya Pradesh, has emerged as a successful initiative by the Central Government.

About Wildlife Institute of India (WII)

• The Wildlife Institute of India (WII) is an autonomous body established in 1982 under the Ministry of Environment, Forests and Climate Change, Government of India.
• Its primary goal is to foster wildlife science in the country.
• Located in Dehradun, Uttarakhand, it is adjacent to the renowned Rajaji National Park.
• The institution is internationally recognized and offers various training programs, academic courses, and advisory services in wildlife research and management.
• WII actively engages in biodiversity-related issues across India.

Objectives

• Enhance scientific understanding of wildlife resources.
• Train individuals at different levels for the conservation and management of wildlife.
• Conduct research pertinent to wildlife management, including developing techniques suitable for Indian contexts.
• Provide expert information and advice on specific wildlife management challenges.
• Collaborate with international organizations on wildlife research, management, and training initiatives.
• Establish itself as a regional hub of international significance for wildlife and natural resource conservation.

The institute conducts research in various fields, including:

• Biodiversity studies
• Wildlife policy formulation
• Research on endangered species
• Wildlife management techniques
• Forensic studies related to wildlife
• Eco-development projects
• Spatial modeling
• Research on the impacts of climate change

The board of WII is chaired by the Union Minister and includes representatives from both central and state governments, as well as various academic and institutional bodies.