UPSC Daily Current Affairs- 16th October 2022 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS-II

Context

The 6th Summit meeting of the Conference on Interaction and Confidence Building Measures in Asia (CICA) held in Astana, Kazakhstan.

About CICA

• The Conference on Interaction and Confidence Building Measures in Asia (CICA) is a multi-national forum for enhancing cooperation towards promoting peace, security and stability in Asia.
• The CICA was convened in 1992, at the 47th Session of the United Nations General Assembly.
• Members and Observers – To be a member of CICA, a state must have at least a part of its territory in Asia.
• Currently, CICA has 27 Member States and 14 observers.
• The CICA Secretariat – It is an administrative body of CICA and is located in Nur-Sultan, Kazakhstan.
• Summit – The highest decision making organ of CICA is the Meeting of the CICA Heads of State and Government (Summit).
• The CICA Summit is convened every four years in order to conduct consultations, review the progress of, and set priorities for CICA activities.
• India and CICA – India is a founding member of CICA.
• India is the coordinator of CICA’s confidence building measures in combating terrorism.

Context

Recently, External Affairs Minister (EAM) of India has visited New Zealand and Australia.

• The meeting consisted of various geo-political issues like how India-New Zealand contributions together will shape the larger region, the Indo-Pacific region. They also discussed the present security situation in the Indo-Pacific and also the consequences arising out of the Ukraine conflict.

What are the Different Aspects of India-New Zealand Relations?

• Historical Relations: India and New Zealand have a longstanding, friendly and growing relationship. Our ties go back to the 1800s, with Indians settling in Christchurch as early as the 1850s. Larger numbers of immigrants from Punjab and Gujarat came to New Zealand in the 1890s. Indian troops fought alongside the Anzacs in Gallipoli in 1915.
• Political Relations: India and New Zealand have cordial and friendly relations rooted in the linkages of the Commonwealth, parliamentary democracy, and the English language. Both countries became independent in the same year and diplomatic representation of India was established in 1950 with the opening of a Trade Commission, which was later upgraded to High Commission.
  • Both countries are fellow travellers in their commitment to disarmament, global peace, North-South Dialogue, human rights, ecological preservation and combating international terrorism.
• Cooperation on the Covid-19 pandemic: Both countries cooperated extensively both bilaterally in fighting against the pandemic by ensuring the continuity of supply chains of essential commodities, medicines, and vaccines. Both countries also facilitated the repatriation of each other’s nationals stranded in the wake of Covid-19.
• Trade Relations: 11th largest two-way trading partner with total two-way trade valued at US$1.80 bn during 2020. Education and tourism are NZ’s growth sectors with India. Indian students numbering approximately 15000 (before the pandemic) are the 2nd largest source of international students for NZ.
  • The number of Indian visitors to NZ in 2018 was the 9th largest at 67,953.
  • India primarily imports logs and forestry products, wood pulp, wool, and edible fruit & nuts from NZ.
  • Indian exports to NZ mostly are pharmaceuticals/medications, precious metals and gems, textiles and motor vehicles and non-knitted apparel and accessories.
  • India shares Free Trade Agreements (FTAs) with New Zealand.
• Business Alliances: India NZ Business Council (INZBC) and India NZ Trade Alliance (INZTA) are the two prominent organizations working to promote India-NZ trade and investment relations.
• Cultural Relations: All Indian festivals including Diwali, Holi, Rakshabandhan, Baisakhi, Guruparv, Onam, Pongal, etc. are celebrated with much enthusiasm all over NZ. A set of four new stamps depicting the story of Diwali has been issued by New Zealand Post in 2021. NZ has approximately 2,50,000 persons of Indian origin & NRIs, a vast majority of which has made NZ their permanent home.

Way Forward

• India’s strong economy, large population, and international influence make it a key partner in the Indo-Pacific region.
• Our relationship with the countries of the Indo-Pacific is a priority due to the increasing influence and assertiveness of China in the region. 
• It also represents an enormous potential for India to emerge as a key leader in the region.

Context

The Union Cabinet has approved the Multi-State Cooperative Societies (MSCS) Amendment Bill, 2022, which seeks to amend the Multi-State Cooperative Societies Act, 2002

• A new Ministry of Cooperation was formed in July 2021 with an objective to provide renewed impetus to the growth of Cooperative Sector.

What are the Changes Proposed in the Bill?

• The amendments seek to improve ease of doing business, bringing greater transparency and enhance governance.
• It has included provisions relating to representation of women and Scheduled Caste/Scheduled Tribe members on the board of multi-state cooperative societies.
• The amendments have been brought to reform the electoral process, strengthen monitoring mechanisms and enhance accountability.
• It will also widen the composition of board and ensure financial discipline, besides enabling the multi-state cooperative societies to raise funds.
• To improve the governance of multi-state cooperative societies, the Bill has specific provisions for setting up of Cooperative Election Authority, Cooperative Information Officer and Cooperative Ombudsman.
• There will also be a provision for issuing non-voting shares in multi-state co-operative societies to help them raise funds.
• Further, the newly proposed Rehabilitation, Reconstruction & Development Fund will help in revitalising sick co-operative societies.
• The Bill will incorporate the provisions of the 97th Constitutional Amendment.
• Moreover, the provision for stipulating prudential norms will bring in financial discipline. The amendments relating to auditing mechanism will ensure more accountability.

What are the Key Points of MSCS Act, 2002?

• About:
  • Multi State Cooperative Societies: Although Cooperatives is a state subject, there are many societies such as those for sugar and milk, banks, milk unions etc whose members and areas of operation are spread across more than one state.
  • For example, most sugar mills along the districts on the Karnataka-Maharashtra border procure cane from both states.
    • Maharashtra has the highest number of such cooperative societies at 567, followed by Uttar Pradesh (147) and New Delhi (133).
  • The MSCS Act was passed to govern such cooperatives.
• Legal Jurisdiction: 
  • Their board of directors has representation from all states they operate in.
  • Administrative and financial control of these societies is with the central registrar, with the law making it clear that no state government official can wield any control on them.
  • The exclusive control of the central registrar was meant to allow smooth functioning of these societies, without interference of state authorities.
• Associated Concerns:
  • Lack of Checks and Balances: 
    • While the system for state-registered societies includes checks and balances at multiple layers to ensure transparency in the process, these layers do not exist in the case of multi state societies.
    • The central registrar can only allow inspection of the societies under special conditions.
    • Further, inspections can happen only after prior intimation to societies.
  • Weak Institutional Infrastructure of Central Registrar:
    • The on-ground infrastructure for central registrar is thin — there are no officers or offices at state level, with most work being carried out either online or through correspondence.
    • Due to this, the grievance redressal mechanism has become very poor.
    • This has led to several instances when credit societies have launched ponzi schemes taking advantage of these loopholes.

What are Cooperatives in India?

• Definition:
  • The International Cooperative Alliance (ICA) defines a Cooperative as “an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.”
• Examples of Successful Cooperatives in India:
  • National Agricultural Cooperative Marketing Federation of India (NAFED),
  • Indian Farmers Fertilisers Cooperative Limited (IFFCO)
  • AMUL
• Constitutional Provisions:
  • The Constitution (97th Amendment) Act, 2011 added a new Part IXB regarding the cooperatives working in India.
  • The word “cooperatives” was added after “unions and associations” in Article 19(1)(c) under Part III of the Constitution.
  • This enables all the citizens to form cooperatives by giving it the status of fundamental right of citizens.
  • A new Article 43B was added in the Directive Principles of State Policy (Part IV) regarding the “promotion of cooperative societies”.
• Supreme Court Judgement:
  • July, 2021, the Supreme Court struck down certain provisions of the 97th Amendment Act, 2011
  • As per the SC, Part IX B (Articles 243ZH to 243ZT) has “significantly and substantially impacted” State legislatures’ “exclusive legislative power” over its co-operative sector.
  • Also, the provisions in the 97th Amendment were passed by Parliament without getting them ratified by State legislatures as required by the Constitution.
  • The SC held that states have exclusive power to legislate on topics reserved exclusively to them (cooperatives are a part of State list).
  • The 97th Constitutional Amendment required ratification by at least one-half of the state legislatures as per Article 368(2).
  • Since the ratification was not done in the case of the 97th amendment, it was liable to strike it down.
  • It upheld the validity of the provisions of Part IX B which are related to Multi State Cooperative Societies (MSCS).
  • It said that in case of MSCS with objects not confined to one state, the legislative power would be that of the Union of India.

GS-III

Context 

According to a recent study, Cold ocean currents have sheltered the Galápagos Islands from global warming.

• The islands are protected from an otherwise warming the Pacific Ocean by a cold, eastward equatorial ocean current.
• The equatorial undercurrent in the Pacific Ocean is bound to the equator by the force of the planet’s rotation. Under the ocean’s surface, a swift circulation of cold, nutrient-rich water flows from west to east.

What is Galapagos Archipelago?

• Location: 
  • The Galapagos Islands, spread over almost 60,000 sq km, are a part of Ecuador.
  • These are located in the Pacific Ocean around 1,000 km away from the South American continent.
• Protection Status:
  • Ecuador made a part of the Galapagos a wildlife sanctuary in 1935, and the sanctuary became the Galapagos National Park in 1959.
  • In 1978, the islands became UNESCO’s first World Heritage Site.
• Wildlife:
  • It contains aquatic species such as manta rays and sharks which have been endangered by commercial fishing.
  • It also hosts a wide array of aquatic wildlife, including marine iguanas, and waved albatrosses.
  • Galápagos is home to the critically endangered — Galápagos penguin, Galápagos fur seal and Galápagos sea lion.
  • Also, the giant tortoises found here – 'Galápagos' in old Spanish – give the islands its name.
• Significance:
  • The British naturalist Charles Darwin made key observations in 1835 that shaped his theory of evolution.
  • Darwin described the islands as a “world in itself”.
  • Corals do not bleach and die in these waters off the west coast of Ecuador.

What are Ocean Currents?

• About: Ocean currents are the continuous, predictable, directional movement of seawater. It is a massive movement of ocean water that is caused and influenced by various forces. They like river flows in oceans.
• Types:
  • Cold currents: It brings cold water into warm water areas. These currents are usually found on the west coast of the continents in the low and middle latitudes (true in both hemispheres) and on the east coast in the higher latitudes in the Northern Hemisphere.
  • Examples: Canary Current, California Current, Benguela Curren etc.
  • Warm currents: It brings warm water into cold water areas and is usually observed on the east coast of continents in the low and middle latitudes (true in both hemispheres).
  • Examples: North Atlantic, Gulf Stream, the Kuroshio Current etc.

Which are the Factors that Influences Ocean Current?

Ocean Currents are Influenced by Two types of Forces:

• Primary Forces:
  • Heating by solar energy: Heating by solar energy causes the water to expand. That is why, near the equator the ocean water is about 8 cm higher in level than in the middle latitudes. This causes a very slight gradient and water tends to flow down the slope.
  • Wind: Wind blowing on the surface of the ocean pushes the water to move. Friction between the wind and the water surface affects the movement of the water body in its course.
  • Gravity: Gravity tends to pull the water down the pile and create gradient variation.
  • Coriolis Force: The Coriolis force intervenes and causes the water to move to the right in the northern hemisphere and to the left in the southern hemisphere.
    • These large accumulations of water and the flow around them are called Gyres.
    • These produce large circular currents in all the ocean basins.
• Secondary Forces:
  • Differences in Water Density: Water with high salinity is denser than water with low salinity and in the same way cold water is denser than warm water.
    • Denser water tends to sink, while relatively lighter water tends to rise.
  • Temperature of Water: Cold-water Ocean currents occur when the cold water at the poles sinks and slowly moves towards the equator.
    • Warm-water currents travel out from the equator along the surface, flowing towards the poles to replace the sinking cold water.

Context

Recently, the Union State Minister for Science and Technology stated that the Purple Revolution offers attractive StartUp avenues.

• The Ministry of Science and Technology initiated the Purple Revolution or Lavender Revolution in 2016 through the Aroma Mission of the Council of Scientific and Industrial Research (CSIR).

What is Purple Revolution?

• About:
  • It aims to promote the indigenous aromatic crop-based agro-economy by shifting from foreign aromatics to homegrown kinds.
  • First-time producers were offered free lavender seedlings as part of the goal, and those who had previously produced lavender were paid Rs. 5-6 per plant.
  • The CSIR-Aroma Indian Institute of Integrative Medicine (IIIM)’s Initiative have begun lavender cultivation in the Ramban district of Jammu and Kashmir.
  • Lavender farming is done in nearly all of Jammu and Kashmir’s 20 districts.
  • Particularly, the districts of Kathua, Udhampur, Doda, Kishtwar, Rajouri, Srinagar, Bandipora, Budgam, Ganderbal, Anantnag, Kulgam, Baramulla etc. have made huge progress in this direction.
• Products:
  • The main product is Lavender oil which sells for at least Rs. 10,000 per litre
  • Lavender water, which separates from lavender oil, is used to make incense sticks.
  • Hydrosol, which is formed after distillation from the flowers, is used to make soaps and room fresheners.
• Significance:
  • It is significant since it aligns with the government’s objective of doubling agricultural earnings by 2022.
  • It would provide a livelihood for aspiring farmers and agri-entrepreneurs, as well as strengthen the Start-Up India programme and encourage an entrepreneurial spirit in the region.
  • Over 500 young people benefited from the purple revolution, which eventually led to the doubling of their income.
  • Agricultural development is one of the most powerful tools to end economic constraints, boost shared prosperity and feed a projected 9.7 billion people by 2050.

What is Aroma Misson?

• The CSIR Aroma Mission aims to bring about transformational change in the aroma sector by implementing targeted interventions in agricultural, processing, and product development in order to boost the aroma industry's growth and rural employment.
• It will encourage the development of aromatic crops for the production of essential oils, which are in high demand in the aroma sector.
• It is anticipated that Indian farmers and the aroma business will be able to become worldwide leaders in the production and export of various essential oils in the menthol mint pattern.
• Aroma Mission is drawing entrepreneurs and farmers from all across the country. CSIR assisted in the cultivation of 6000 hectares of land in 46 Aspirational districts across the country during Phase I.
• In addition, almost 44,000 employees were trained. The CSIR has started Phase II of the Aroma Mission, which will include over 45,000 skilled human resources and help over 75,000 farming families.

Indian Deep Tech and a case for a strategic fund

Context

In order to become a developed country in 25 years, India will need to build world-class deep tech capabilities in certain sectors.

• Government of India is making a concerted push for self-reliance in military technology, semiconductors and science-based businesses.
• However, there is a market failure where typical venture capital will not invest in this asset class, and government money is not nearly enough or is not fast enough.
• To solve this market inefficiency, India should focus on “India Strategic Fund”.
• Certain innovations in the existing corporate social responsibility (CSR) budgets and high net worth (HNI) tax breaks will incentivise capital flowing into strategic tech.

Importance of Self reliance

• Our way of life, economic and national security are underpinned to certain general purpose technologies (GPTs).
• Today, four technology battlegrounds exist, i.e. semiconductors, 5G, revolutions in biology and autonomy. Each of these is vulnerable to military conflict, health emergencies and natural disasters.

They are areas where India is still at the base of the ladder.

• Self-reliance is not just a ‘feel good’ slogan. It is a survival imperative.

Crucial role of funding

• In the United States, Israel and North Atlantic Treaty Organization countries, government is still the largest source of funds for Deep Tech — a cutting-edge, quantum jump in capability that creates an intellectual property moat. This funding becomes the oxygen that small businesses survive on.
• This has allowed start-ups to emerge as a bridge between bench top prototypes of academia and production-hungry large industry. In India, this bridge remains unbuilt.
• This is because Indian Venture capital ecosystem is not willing to invest in it or even to discuss it.
• While the western rhetoric is now beginning to shift towards increasing the military utility of commercially available technology, India need to be cognisant of the fact that strategic technology cannot become the burden of commercial industry alone.

India Strategic Fund – Redirecting CSR and tax incentives

• While there are schemes like Indian Semiconductor Mission and the Ministry of Defence’s flagship iDEX and TDF schemes, depending solely on an already stretched pool of funding is not the solution to galvanise the ecosystem.

There are two avenues to build a movement of patriotic capital.

CSR budgets:

• By some estimates, the annual CSR budget is ₹15,000 crore, of which a substantial portion goes unutilised.
• CSR has traditionally been utilised for the social sector. However, this growing corpus should also be used for the development of strategic technology.
• Large corporations can be incentivised to use some of this budget to serve the strategic needs of the nation.

High Net Worth (HNI)

• HNIs can also be offered tax incentives to make equity investment in the same critical technology startups
• This would help mitigate the pinch felt with lower short-term returns.
• The corpus of investment should be tax deductible and no more than a certain percentage of annual income.

Staying the course

• India will remain a net importer of critical technology in the foreseeable future. While the Prime Minister’s vision for an Atmanirbhar Bharat has created the right momentum, it will take close to a decade or more to fructify. If correctly aligned with the programmes launched by the Government, CSR funds and the right tax incentives to HNIs can create an almost self-fulfilling prophecy in the nascent Indian Deep Tech ecosystem.