UPSC Daily Current Affairs- 9th June 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS-I

Cyclone Biparjoy and its Naming

Why in News?

A cyclonic storm, named Biparjoy, has developed in the Arabian Sea.

Cyclone Biparjoy

• It was stationed about 850 km west of Goa and 900 km southwest of Mumbai.
• The cyclone is predicted to gain in strength over the next three days and develop into a very severe cyclonic storm by June 13.
• It would result in squally weather with wind speeds reaching 35-45 kmph along the coastline of Karnataka, Goa, and Maharashtra
• The IMD has not yet predicted any major impact on countries adjoining the Arabian Sea, including India, Oman, Iran, and Pakistan.

How it was named?

• Origin of Cyclone Biparjoy’s Name: ‘Biparjoy’ was suggested by Bangladesh and the word means ‘disaster’ or ‘calamity’ in Bengali. The next cyclone after Biparjoy will be named ‘Tej’ based on India’s suggestion.
• Rotational Basis for Naming: The naming of cyclones is done by countries on a rotational basis, following certain existing guidelines.
• Responsibilities of RSMCs and TCWCs: Worldwide, there are six regional specialized meteorological centers (RSMCs) and five regional Tropical Cyclone Warning Centers (TCWCs) mandated for issuing advisories and naming of tropical cyclones.
• IMD’s Role: IMD is one of the six RSMCs providing tropical cyclone and storm surge advisories to 13 member countries under the WMO/Economic and Social Commission for Asia-Pacific (ESCAP) Panel.
• Naming Authority of IMD: RSMC, New Delhi, is also mandated to name the tropical cyclones developing over the north Indian Ocean, including the Bay of Bengal and the Arabian Sea.
• Guidelines for Naming: Some rules are to be followed while naming cyclones, such as being neutral to politics, religious beliefs, cultures, and gender, avoiding offensive or cruel names, and keeping the name short and easy to pronounce.
• Next Cyclone Name: After Bangladesh, the next cyclone will be named ‘Tej’ based on India’s suggestion.

Cyclones in the Arabian Sea: A quick recap

• Frequency of Cyclones: It is not rare for cyclones to develop in the Arabian Sea. There are fewer cyclones compared to the Bay of Bengal, but it is not uncommon.
• Favorable Months: June is one of the favorable months for the formation of cyclones in the Arabian Sea.
• Factors Influencing Cyclone Formation: Cyclones form due to low-pressure systems over warm waters. The Bay of Bengal is slightly warmer, but the Arabian Sea is also getting warmer due to climate change, leading to an increase in cyclones.
• Coriolis Effect and Weather Systems: In a depression or low-pressure situation, the air blows in an anticlockwise direction in the northern hemisphere, influenced by the Coriolis Effect.

Role of Climate Change

• Historical data indicates that the frequency of extremely severe cyclonic storms has increased over the Arabian Sea since 1990, while it has remained the same over the Bay of Bengal.
• A 2021 study highlighted the increasing intensity, frequency, and duration of cyclonic storms in the Arabian Sea.
• The warming is indicated by the nearly tripled accumulated cyclone energy, reflecting the extent of warming in recent years.

Source: The Hindu

Why in News?

Recently, the union government of India approved the continuation of the central sector plan 'Exploration of Coal and Lignite scheme' with an estimated expenditure of ₹2,980 crore.

About Exploration of Coal and Lignite Scheme:

• The period for the extension is from 2021-22 to 2025-26.
• Under this scheme, exploration for coal and lignite is conducted in two broad stages: (i) Promotional (Regional) Exploration and (ii) Detailed Exploration in non-Coal India Limited blocks.
• Benefits of the scheme
  • This scheme is required to prove and estimate coal resources available in the country, which helps in preparing detailed project reports to start coal mining. 
  • The geological reports prepared through these explorations are used for auctioning new coal blocks, and the cost is thereafter recovered from successful allocatee.

What are the types of Coal?

• Anthracite: It contains the highest amount of carbon out of all coal ranks (86%-97%) and it is used mostly in industrial settings and the metals industry due to its high heat value.
• Lignite: it is lighter in colour than the higher ranks of coal. It has the lowest carbon content out of all the coal ranks (25%-35%) and it has a high moisture content and crumbly texture. 
• Bituminous: It has slightly lower carbon content than anthracite (45%-86%)1. The wide range of carbon content in bituminous coal warrants uses for both electricity and steel production. 
• Peat: It is the starting stage of a coal formation which has low calorific value and low carbon content.

Source: The Hindu

GS-II

Why in News?

The NExT examination, a common qualifying criterion for final-year undergraduate medical students will be introduced in the year 2024.

National Exit Test (NExT)

• Objective: The examination aims to bring uniformity in evaluation across the country, ensuring minimum common standards of education and training for medical graduates.
• Two-Part Examination: The NExT exam will consist of two parts: NExT 1, which will be a theoretical examination, and NExT 2, which will include practical, clinical, and oral examinations covering seven clinical subjects or disciplines.
• Mock Test: A mock test may be conducted to familiarize students with the procedure and alleviate any anxiety before the official examination is rolled out.

National Medical Commission and Application of NExT

• Role of NMC: The NMC is responsible for implementing the NExT examination and ensuring a common standard for medical education in the country.
• Applicability: The NExT examination will also apply to institutes of national importance, including the All India Institutes of Medical Sciences (AIIMS), to maintain uniformity in medical education.

Significance

• Quality professionals: The NExT examination is seen as a means to ensure quality and produce well-trained Indian medical graduates.
• Expert Perspectives: Experts in the medical field have welcomed the move, emphasizing the importance of uniform examination standards and the opportunity for interns to focus on their clinical training.

Source: The Hindu

Why in News?

A massive controversy has erupted over a social media video of a parade float depicting late prime minister Indira Gandhi's assassination in Canada.

• In 1984, Indira Gandhi was assassinated by her Sikh bodyguards, months after the military operation called the Operation Bluestar.

• The parade was allegedly organised by pro-Khalistani supporters on June 4, days before the 39th anniversary of ‘Operation Bluestar’ (celebrated on June 6).

What is the Khalistan movement?

• About
  • The Khalistan movement is a fight for a separate, sovereign Sikh state in present day Punjab (both India and Pakistan).
  • The movement was crushed in India following Operation Blue Star (1984) and Operation Black Thunder (1986 and 1988).
    • Operation Blue Star began on June 1, 1984 to flush out militants from the Golden Temple and neutralise Bhindranwale.
  • However, it continues to evoke sympathy and support among sections of the Sikh population, especially in the Sikh diaspora in countries such as Canada, the UK, and Australia.
• Khalistan and Canada
  • As per the 2021 Canadian census, Sikhs account for 2.1 per cent of Canada’s population, and are the country’s fastest growing religious group.
    • After India, Canada is home to the largest population of Sikhs in the world.
  • In 2002, Toronto-based Punjabi-language weekly Sanjh Savera greeted Indira’s death anniversary with a cover illustration of her murder.
    • The magazine received government advertisements, and is now a prominent daily in Canada.
  • Last year in Brampton - home to Canada’s largest Sikh population - a pro-Khalistan organisation known as Sikhs for Justice (SFJ) held a so-called referendum on Khalistan.

When did the movement start and why?

• Origin lies in India’s independence and subsequent Partition along religious lines
  • The Punjab province, which was divided between India and Pakistan, saw some of the worst communal violence and generated millions of refugees.
  • Lahore, the capital of Maharaja Ranjit Singh’s great Sikh Empire, went to Pakistan, as did holy Sikh sites including Nankana Sahib, the birthplace of Guru Nanak, the founder of Sikhism.
  • While most Sikhs found themselves in India, they were a small minority in the country, making up around 2 per cent of the population.
• Struggle for greater autonomy & States Reorganisation Commission
  • The political struggle for greater autonomy began around the time of Independence, with the Punjabi Suba Movement for the creation of a Punjabi-speaking state.
  • The States Reorganisation Commission, in its 1955 report, rejected this demand, but in 1966, after years of protest, the state of Punjab was reorganised to reflect the Punjabi Suba demand.
  • The erstwhile Punjab state was trifurcated into the Hindi-speaking, Hindu-majority states of Himachal Pradesh and Haryana, and the Punjabi-speaking, Sikh-majority Punjab.
• Anandpur Sahib Resolution
  • In 1973, leaders of the Akali Dal met at the sacred town of Anandpur Sahib, the birthplace of the Khalsa.
  • They released a list of demands that would guide the political path of the Akali Dal.
  • Among other things, the Anandpur Sahib Resolution demanded autonomy for the state of Punjab, identified regions that would be part of a separate state, and sought the right to frame its own internal constitution.
  • The Akali Dal was trying to cash in on the growing demand for an autonomous state which had emerged alongside the Punjabi Suba movement.
    • This demand had gone global by 1971 — when an advertisement appeared on The New York Times proclaiming the birth of Khalistan.
• Rise of Jarnail Singh Bhindranwale
  • Many in Punjab sought to go beyond just a demand for greater autonomy. One such man was Jarnail Singh Bhindranwale.
  • Bhindranwale was a charismatic preacher who soon positioned himself as the authentic voice of the Sikhs.
  • He found a captive audience in the state’s youth, especially those in the lower rungs of the social ladder, and massed a massive following.
  • By 1982, he took up residence inside the Golden Temple, directing demonstrations and clashes with the police.
  • The movement was geared towards the demands first articulated in the Anandpur Sahib Resolution.
  • However, amidst growing religious polarisation, sectarian violence, and Bhindranwale’s own harsh rhetoric against Hindus, the then government declared the movement tantamount to secession.
• The aftermath of Operation Blue Star
  • This operation gravely wounded the Sikh community around the world. It also galvanised the demand for Khalistan.
  • Punjab saw the worst violence, becoming the hub of a long drawn-out insurgency that lasted till 1995.

News Summary: Celebration of Indira Gandhi's killing in Canada

What really happened at Canada event?

• A tableau in the 5 km-long parade seemed to celebrate the assassination of former Prime Minister Indira Gandhi.
  • A female figure was shown in a blood-stained white saree, with the hands up, as turbaned men pointed guns at her.
• A poster behind the scene read Revenge for the attack on Darbar Sahib.

India's response

• The Indian high commission in Ottawa sent a note expressing displeasure to Global Affairs Canada, the Canadian foreign ministry.
  • One cannot exceed freedom of expression like this, glorifying the assassination of the leader of a democratic nation.
• India warned Canada that giving space to separatists, extremists was not good for bilateral ties.

Source: PIB

GS-III

Why in News?

Former Reserve Bank of India (RBI) Governor, Raghuram Rajan, recently expressed doubts regarding the efficacy of the production-linked incentive (PLI) scheme in boosting India’s domestic manufacturing and exports. While the government believes that the PLI scheme has been successful in enhancing the manufacturing sector, critics have raised concerns about its effectiveness.

What is Production-Linked Incentive scheme (PLI)?

• PLI is a scheme introduced by the Indian government in 2020 to promote domestic manufacturing in specific sectors.
• Under the PLI scheme, eligible companies receive financial incentives or subsidies based on their incremental production or sales.
• The objective of the scheme is to boost the competitiveness of Indian manufacturers, attract investment, create employment opportunities, and enhance exports in targeted sectors.
• The scheme aims to encourage both domestic and foreign companies to set up or expand their manufacturing operations in India, thereby strengthening the country’s manufacturing ecosystem and reducing reliance on imports.

Significance of the policy of subsidizing domestic sectors

• Promoting Domestic Industries: Subsidies provide financial support to domestic industries, encouraging their growth and competitiveness. By reducing production costs, subsidies enable businesses to offer goods and services at more competitive prices, both in domestic and international markets.
• Encouraging Employment Generation: Subsidies can stimulate job creation within domestic sectors. By providing financial incentives to businesses, subsidies help them expand their operations, leading to increased hiring and reduced unemployment rates.
• Enhancing Competitiveness: Subsidies can bolster the competitiveness of domestic industries, particularly in sectors where foreign competitors have a significant advantage. Financial assistance can be used to invest in research and development, adopt advanced technologies, upgrade infrastructure, and improve product quality, enabling domestic businesses to compete more effectively on a global scale.
• Reducing Dependency on Imports: By subsidizing domestic sectors, governments aim to reduce reliance on imported goods and services. This supports import substitution, where domestic industries are incentivized to produce goods that were previously imported, thereby strengthening the domestic manufacturing base and reducing trade deficits.
• Fostering Innovation and Technology Development: Subsidies can facilitate research and development activities within domestic sectors. By providing financial support for innovation, governments encourage businesses to invest in new technologies, processes, and products.
• Sectoral Development and Economic Diversification: Subsidies can be targeted towards specific sectors deemed strategically important for the country’s economic development and diversification. By incentivizing investments in these sectors, governments aim to create a robust industrial base, foster industrialization, and facilitate economic growth.
• Addressing Market Failures: Subsidies can be used to rectify market failures, such as externalities or information asymmetries. For example, subsidies can be provided to encourage the adoption of environmentally friendly practices or to support industries with high spillover effects on other sectors of the economy.
• Attracting Investments: Subsidies serve as a tool to attract domestic and foreign investments. By offering financial incentives and creating a favorable business environment, governments can entice businesses to establish or expand their operations within the country. This promotes economic development, job creation, and technology transfer

Role of tariffs on imports

• Protecting Domestic Industries: Tariffs are often imposed on imported goods to provide a level of protection to domestic industries. By increasing the cost of imported products, tariffs make them less competitive in the domestic market.
• Creating a Level Playing Field: Tariffs can help create a level playing field for domestic industries by counterbalancing advantages enjoyed by foreign competitors. These advantages may include lower production costs, access to subsidies, or different regulatory standards.
• Promoting Import Substitution: Tariffs incentivize domestic production by making imported goods more expensive. This stimulates import substitution, where domestic industries are encouraged to manufacture goods that were previously imported.
• Generating Government Revenue: Tariffs are a significant source of revenue for governments. By levying taxes on imports, governments can generate funds that can be allocated for various public purposes, including infrastructure development, social programs, and public services.
• Balancing Trade Deficits: Tariffs can be utilized to address trade imbalances and reduce trade deficits. If a country consistently imports more than it exports, imposing tariffs on certain imported goods can help reduce the trade deficit by discouraging excessive imports.
• Encouraging Domestic Industry Development: Tariffs can encourage the development and growth of domestic industries by making imported goods relatively more expensive. Higher prices on imports can incentivize domestic businesses to invest in their production capabilities, innovate, and improve efficiency.

Challenges of effective implementation of the PLI in manufacturing sector

• Targeting and Selection: Identifying the right sectors and companies for incentives is crucial to the success of the PLI scheme. Determining the sectors that have the potential for growth, job creation, and export competitiveness requires careful analysis and assessment.
• Administrative Efficiency: Efficient administration and implementation of the PLI scheme are essential. This involves the timely disbursal of incentives and the monitoring of compliance by beneficiary companies.
• Funding and Budgetary Allocation: The PLI scheme requires significant financial resources to support the incentives provided to eligible companies. Ensuring adequate funding and appropriate budgetary allocation pose challenges, especially in balancing the financial burden on the government while meeting the scheme’s objectives.
• Meeting Performance Criteria: The PLI scheme typically includes performance-based criteria that companies must meet to qualify for incentives. Ensuring that beneficiary companies adhere to these criteria and meet the prescribed benchmarks can be challenging and requires continuous monitoring and evaluation.
• Risk of Subsidy Dependence: There is a risk that companies may become overly reliant on subsidies and may not invest adequately in improving their competitiveness or innovation capabilities.
• Sector-Specific Challenges: Different sectors within the manufacturing industry have unique challenges that need to be considered during the implementation of the PLI scheme. These challenges could include technological barriers, supply chain complexities, skill gaps, or global market dynamics.

Way ahead: Addressing the structural issues in the manufacturing sector

• Infrastructure Development: Adequate and modern infrastructure, including transportation networks, power supply, logistics, and connectivity, is essential for the smooth functioning of manufacturing activities.
• Access to Finance: Availability of affordable and accessible finance is critical for the growth of the manufacturing sector, especially for small and medium enterprises (SMEs). Enhancing access to credit, promoting innovative financing mechanisms, and easing collateral requirements can help address the finance gap and support the expansion of manufacturing businesses.
• Quality of Education and Skill Development: A skilled workforce is vital for the manufacturing sector’s productivity and competitiveness. Addressing the quality of education and aligning it with the needs of the industry can help bridge the skill gap.
• Research and Development (R&D) and Innovation: Promoting R&D and innovation is crucial for enhancing the technological capabilities and competitiveness of the manufacturing sector. Encouraging investment in R&D, fostering collaboration between industry and research institutions can help drive technological advancements
• Regulatory Reforms: Simplifying and rationalizing regulatory frameworks can reduce bureaucratic burdens, enhance ease of doing business, and attract investments. Streamlining processes, reducing red tape, and ensuring transparent and efficient regulatory mechanisms can create a conducive environment for manufacturing businesses to thrive.
• Supply Chain Integration: Strengthening supply chain integration is essential for improving efficiency, reducing costs, and enhancing competitiveness.
• Sustainability and Environment: Integrating sustainability practices and adopting eco-friendly technologies are increasingly important for the manufacturing sector. Emphasizing resource efficiency, reducing carbon emissions, and promoting circular economy principles can enhance the sector’s environmental sustainability and compliance with global sustainability standards.
• Market Access and Trade Policies: Facilitating market access, reducing trade barriers, and promoting export-oriented policies are critical for the manufacturing sector’s growth and global competitiveness.

Conclusion

The efficacy of the PLI scheme in boosting India’s domestic manufacturing and exports is a subject of debate. While targeted subsidies can stimulate growth in strategic sectors and cater to existing demand, concerns surrounding cronyism and bureaucratic control must be addressed. Focusing on improving the investment environment and addressing infrastructural and educational deficiencies will contribute to sustainable growth in the manufacturing sector.

Source: The Hindu

Why in News?

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged.

• This is for the second time since the RBI started hiking Repo rate in May 2022 to check inflation.

Monetary Policy Committee (MPC)

• The Committee
  • Under Section 45ZB of the amended RBI Act, 1934, the central government is empowered to constitute a six-member Monetary Policy Committee (MPC).
  • MPC will determine the policy interest rate required to achieve the inflation target. The first such MPC was constituted in September 2016.
• Members of MPC
  • As per the amended RBI act, the MPC shall consist of
    • the RBI Governor as its ex officio chairperson,
    • the Deputy Governor in charge of monetary policy,
    • an officer of the Bank to be nominated by the Central Board, and
    • three persons to be appointed by the central government.
• Functions of MPC
  • Setting Policy Interest Rates: The primary function of the MPC is to determine the policy interest rates, specifically the repo rate.
  • Inflation Targeting: The current inflation target set by the government is a Consumer Price Index (CPI) inflation target of 4% with a tolerance band of +/- 2%.
  • Economic Analysis and Forecasting: The MPC conducts thorough analysis and forecasting of various economic indicators, including inflation, GDP growth, employment, fiscal conditions, and global economic developments.
  • Decision-Making: The MPC meets at least four times a year to review the monetary policy stance.

News Summary: RBI monetary policy update

Key rates after the announcement

• Repo Rate - The repo rate now stands at 6.50 per cent.
  • Repo rate is the rate at which the Reserve Bank of India lends money to commercial banks in the event of any shortfall of funds.
• The standing deposit facility (SDF) - This rate stands at 6.25%.
  • The SDF is a liquidity window through which the RBI will give banks an option to park excess liquidity with it.
  • It is different from the reverse repo facility in that it does not require banks to provide collateral while parking funds.
  • The idea of an SDF was first mooted in the Urjit Patel Monetary Policy Committee report in 2014.
  • It later received the government’s nod following an amendment to the RBI Act in 2018, vide the Finance Bill.
• The marginal standing facility (MSF) rate– It stands at 6.75%.
  • MSF is a window for banks to borrow from the central bank in an emergency situation when inter-bank liquidity dries up completely.
• The Bank Rate – It is now 6.75%.
  • Bank rate is the rate charged by the central bank for lending funds to commercial banks.
  • There is a slight difference between Bank Rate and Repo Rate. In Repo Rate, RBI lends money to the banks against securities for the short term only.

Other highlights of the MPC announcements

• Retained the policy stance as “withdrawal of accommodation”
  • The MPC decided to remain focused on withdrawal of accommodation.
    • An accommodative stance means the central bank is prepared to expand the money supply to boost economic growth.
    • Withdrawal of accommodation means reducing the money supply in the system which will rein in inflation further.
  • This is to ensure that inflation progressively aligns with the target, while supporting growth.
• Inflation outlook
  • The headline inflation trajectory was likely to be shaped by food price dynamics.
  • Milk prices, on the other hand, are likely to remain under pressure due to supply shortfalls and high fodder costs.
  • Crude oil prices have eased but the outlook remains uncertain.
  • Taking into account these factors and assuming a normal monsoon, CPI inflation has been projected at 5.1% for 2023-24.
• Growth forecast
  • Higher rabi crop production in 2022-23, the expected normal monsoon, and the sustained buoyancy in services should support private consumption and overall economic activity in the current year.
  • The government’s thrust on capital expenditure, moderation in commodity prices and robust credit growth are expected to nurture investment activity.
  • Weak external demand, geo-economic fragmentation, and protracted geopolitical tensions, however, pose risks to the outlook.
  • Taking all these factors into consideration, real GDP growth for 2023-24 has been projected at 6.5%.

Why is the RBI in pause mode on raising interest rates?

• Retail inflation within comfort zone of RBI
  • Retail inflation declined to an 18-month low of 4.7 per cent in April, remaining under the RBI’s comfort zone of 2-6 per cent for two consecutive months.
• Expansion of GDP
  • India’s gross domestic product (GDP) expanded at 6.1 per cent January-March 2023 quarter, in turn pushing up the growth estimate for the full year (2022-23) to 7.2 per cent.

Source: The Hindu

Why in News?

The Reserve Bank of India (RBI) has recently granted its approval for First Loss Default Guarantee (FLDG) framework.