Weekly Current Affairs (15th to 21st July 2023) Part - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

India-UAE Local Currency Settlement System

Context: India and the United Arab Emirates (UAE) have signed a pact to establish Local Currency Settlement System (LCSS) to promote the use of the Indian rupee (INR) and UAE Dirham (AED) for cross-border transactions.

• The deal was signed during the Prime Minister’s recent visit to Abu Dhabi, UAE.

Note: The RBI (Reserve Bank of India) in 2022 announced a framework for settling Global Trade in Rupees, primarily targeting trade with Russia. But this is yet to take off in a substantive manner.

What are the Key Agreements?

LCSS:

• It covers all current account transactions and permitted capital account transactions.
• The LCSS will enable exporters and importers to pay in their respective domestic currencies and enable the development of an INR-AED forex market.
• It will reduce transaction costs and settlement time, including for remittances by Indians in the UAE.
• India could use this mechanism to pay for imports of oil and other commodities from the UAE, its 4th largest energy supplier (in FY 22-23).

UPI-IPP:

• The central banks of both countries have signed to cooperate on linking India’s Unified Payments Interface (UPI) with the UAE’s Instant Payment Platform (IPP) and RuPay switch and UAESWITCH.
• The UPI-IPP link will enable users in both countries to make fast, safe and cost-effective cross-border transfers.
• The linking of card switches will facilitate the mutual acceptance of domestic cards and the processing of card transactions.
• The MoUs were signed by the respective Governors of the RBI and the Central Bank of UAE.
• They will also explore the linking of India’s Structured Financial Messaging System (SFMS) with the payments messaging system of the UAE.

IIT Delhi campus to be set up in Abu Dhabi:

• An MoU was signed for establishment of IIT Delhi campus in Abu Dhabi.
• The new MoU is an addition in the ‘IITs go Global’ campaign.
• This will be the second international IIT campus after IIT Madras Zanzibar, Tanzania.
• The degrees will be offered starting 2024 with courses covering several areas such as Energy and Sustainability, AI, Computer Science and Engineering, Healthcare, Mathematics and Computing and other disciplines of engineering, sciences and humanities.

What is the Significance of Rupee Based Cross Border Transaction?

• India is looking to work out a way to mitigate exchange rate risks in the rupee-based trade to limit losses for Indian exporters.
• The rupee-based transaction is part of a concerted policy effort by India to Internationalize the Rupee to bring down the dollar demand.
• Apart from Russia, countries in Africa, the Gulf region, Sri Lanka and Bangladesh had also expressed interest in trading in rupee terms.
• The RBI’s plan to settle international trade in the local currency will let importers make payments in the rupee, which will be credited to the special account of the correspondent bank of the partner country, while exporters will be paid from the balances in the designated special account.

How has been India- UAE Bilateral Relations?

Diplomatic Ties:

• India and the UAE established diplomatic relations in 1972.
• The greater push has been achieved in bilateral relations when the visit of India’s Prime Minister to the UAE in August 2015 marked the beginning of a new strategic partnership between the two countries.
• Further, during the visit of the Crown Prince of Abu Dhabi to India in January 2017 as the chief guest at India’s Republic Day celebrations, it was agreed that bilateral relations were to be upgraded to a comprehensive strategic partnership.
• This gave momentum to launching negotiations for an India-UAE comprehensive economic partnership agreement.

Bilateral Trade:

• Bilateral trade between India and the UAE was worth ~USD 85 billion in 2022-23 making the UAE India’s 3rd-largest trading partner for 2022-23 and India’s 2nd-largest export destination.
• India is the 3rd largest oil importer in the world and the UAE was its 4th biggest supplier of crude in 2022.
• In 2022, India became the first country with which the UAE signed a Comprehensive Economic Partnership Agreement.
• The UAE, which imports most of its food requirements, has pledged USD 2 billion to develop a series of food parks in India.
• Many Indian companies have set up manufacturing units either as joint ventures or in Special Economic Zones for cement, building materials, textiles, engineering products, consumer electronics, etc. in the UAE.
• Many Indian companies have also invested in the tourism, hospitality, catering, health, retail, and education sectors.

Defense Exercises:

Bilateral:

• In-UAE BILAT (bilateral naval exercise)
• Desert Eagle-II (bilateral air force exercise).
• Exercise Desert Flag-VI: UAE

Multilateral:

• Pitch Black: Biennial, multilateral air combat training exercise of Australia.
• Red Flag: Multilateral air exercise of the USA.

Way Forward

• The India-UAE LCSS can potentially serve as a precursor for other bilateral currency accords - an important first step for the internationalization of the rupee.
• The idea is laudable; however, its actual success will hinge on the extent of adoption by businesses in both nations.
• Continued collaboration in areas such as technology, renewable energy, infrastructure development, tourism, and healthcare can further strengthen the bilateral relationship between India and the UAE.

National Multidimensional Poverty Index

Context: Recently, NITI Aayog has released the Report “National Multidimensional Poverty Index: A Progress Review 2023”, claiming that a significant number of people have come out of multidimensional poverty in India.

What is the National Multidimensional Poverty Index?

• The report has been prepared based on the latest National Family Health Survey-5 ( 2019-21 ) and is the 2nd edition of the National Multidimensional Poverty Index (MPI).
• The first edition of MPI was released in 2021.
• The MPI seeks to measure Poverty across its multiple dimensions and in effect complements existing poverty statistics based on per capita consumption expenditure.
• It has three equally weighted dimensions – Health, Education, and Standard of living.
• These three dimensions are represented by 12 indicators such as nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts.

What are the Key Highlights of the Report?

Reduction in Multidimensional Poverty:

• Between 2015-16 and 2019-21, India witnessed a significant decline in the number of multidimensionally poor individuals.
• Around 13.5 crore people moved out of multidimensional poverty during this period.

Decline in Poverty Percentage:

• India's population living in multidimensional poverty decreased from 24.85% in 2015-16 to 14.96% in 2019-21, reflecting a decline of 9.89 % points.

Rural-Urban Divide:

• The rural areas of India experienced the fastest decline in poverty, with the poverty rate dropping from 32.59% to 19.28% between 2015-16 and 2019-21.
• In urban areas, the poverty rate reduced from 8.65% to 5.27% during the same period.

State-Level Progress:

• In terms of number of MPI poor, Uttar Pradesh saw the largest decline in the number of poor individuals, with 3.43 crore (34.3 million) people escaping multidimensional poverty.
• The states of Bihar, Madhya Pradesh, Odisha, and Rajasthan also witnessed significant progress in reducing multidimensional poverty.
• Bihar saw the fastest reduction in MPI value in absolute terms with the proportion of multidimensional poor reducing from 51.89% to 33.76% in 2019-21 followed by Madhya Pradesh and Uttar Pradesh.

SDG Target:

• The MPI value for India has nearly halved from 0.117 to 0.066 between 2015-16 and 2019-21.
• The intensity of poverty has reduced from 47% to 44%, indicating that India is on track to achieve SDG (Sustainable Development Goals) Target 1.2 (reducing multidimensional poverty by at least half) ahead of the stipulated timeline of 2030.

Improvement in Indicators:

• All 12 indicators used to measure multidimensional poverty showed marked improvements.
• The impact of Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) is evident in the swift 21.8% points improvement in sanitation deprivations.
• The Poshan Abhiyan and Anaemia Mukt Bharat have contributed to reduced deprivations in health.
• The provision of subsidized cooking fuel through the Pradhan Mantri Ujjwala Yojana (PMUY) has positively transformed lives, with a 14.6% improvement in cooking fuel deprivations.

India-Sri Lanka Relations

Context: Recently, the Tamil National Alliance (TNA), the largest parliamentary grouping of Tamil parties in Sri Lanka has rejected the Sri Lankan President's offer to implement the 13th Amendment of the Sri Lankan Constitution without police powers.

• This rejection by the TNA assumes significance before the President's scheduled visit to India, as India has consistently emphasized the "full implementation" of this legislation, which is vital for addressing the historic demand of Sri Lankan Tamils for self-determination.

What is the Background?

About:

• The 13th Amendment was enacted after the Indo-Lanka Accord of 1987, and it remains the only legislative guarantee of power devolution to the provinces.
• Indo-Lanka Accord 1987 was signed by the then Prime Minister Rajiv Gandhi and President J.R. Jayawardene, to resolve Sri Lanka’s ethnic conflict that had aggravated into a full-fledged civil war, between the armed forces and the Liberation Tigers of Tamil Eelam, which led the struggle for Tamils’ self-determination and sought a separate state.
• The 13th Amendment, which led to the creation of Provincial Councils, assured a power sharing arrangement to enable all nine provinces in the country, including Sinhala majority areas, to self-govern.
• Subjects such as education, health, agriculture, housing, land and police are devolved to the provincial administrations, but because of restrictions on financial powers and overriding powers given to the President, the provincial administrations have not made much headway.
• However, successive governments in Sri Lanka have refused to grant land and police powers to the provinces, leading to unresolved issues since the civil war ended 14 years ago.

President's Proposal and TNA's Response:

• The Sri Lankan President presented a comprehensive dossier to Tamil political parties, outlining plans for truth-seeking, reconciliation, accountability, development, and power devolution.
• The proposal included implementing the 13th Amendment, except for police powers, and empowering provincial councils through various Bills.
• However, the TNA rejected the proposal, calling it a "hollow promise," citing a lack of political will to genuinely devolve power, as provincial councils have been defuncting for five years without elections.
• The Tamil National People's Front and civil society leaders expressed concerns to the Indian Prime Minister, urging a federal solution due to limitations of the 13th Amendment under a unitary constitution.

How are India’s Relations with Sri Lanka?

About:

• India and Sri Lanka are two South Asian nations situated in the Indian Ocean region. Geographically, Sri Lanka is located just off the southern coast of India, separated by the Palk Strait.
• This proximity has played a significant role in shaping the relationship between the two countries.
• The Indian Ocean is a strategically important waterway for trade and military operations, and Sri Lanka's location at the crossroads of major shipping lanes makes it a critical point of control for India.

Relations:

• Historical Ties: India and Sri Lanka have a long history of cultural, religious, and trade ties dating back to ancient times.
• There are strong cultural ties between the two countries, with many Sri Lankans tracing their heritage to India. Buddhism, which originated in India, is also an important religion in Sri Lanka.
• Economic ties: India is Sri Lanka’s third largest export destination, after the US and UK. More than 60% of Sri Lanka’s exports enjoy the benefits of the India-Sri Lanka Free Trade Agreement. India is also a major investor in Sri Lanka.
• Foreign Direct Investment (FDI) from India amounted to around USD 1.7 billion over the years from 2005 to 2019.
• Defence: India and Sri Lanka conduct joint Military (Mitra Shakti) and Naval exercise (SLINEX).
• Participation in Groupings: Sri Lanka is also a member of groupings like BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) and SAARC in which India plays a leading role.

Issues in India-Sri Lanka Relations:

• Killing of Fishermen: Killing of Indian fishermen by the Sri Lankan Navy is a lingering issue between these two nations.
• In 2019 and 2020, a total of 284 Indian fishermen were arrested and a total of 53 Indian boats were confiscated by the Sri Lankan authorities.
• Influence of China: China’s rapidly growing economic footprint (and political clout as a corollary) in Sri Lanka is straining India-Sri Lanka relations.
• China is already the largest investor in Sri Lanka, accounting for 23.6% of the total Foreign Direct Investment (FDI) during 2010-2019 as against 10.4% from India.

Way Forward

• The rejection of the President's proposal by the Tamil National Alliance and the growing concerns among Tamil political parties and civil society members underscore the ongoing challenges in implementing the 13th Amendment and devolving power in Sri Lanka.
• India's emphasis on "full implementation" and the push for a federal solution are crucial aspects to watch as President Wickremesinghe's visit to India approaches.

Project Cheetah and Radio Collar Infections

Context: Recently, the use of radio collars in the cheetah reintroduction project in Kuno Wildlife Sanctuary, Madhya Pradesh, India, has resulted in unexpected setbacks, with cheetahs experiencing neck wounds and septicaemia, an infection of the blood by bacteria.

• This situation has raised concerns among experts familiar with collaring practices in India and Africa.

What are Radio Collars?

About:

• Radio collars are used to track and monitor animals in the wild.
• They consist of a collar with a small radio transmitter.
• Collars provide data on animal behavior, migration, and population dynamics.
• They can be combined with GPS or accelerometers for additional information.
• Collars are designed to be lightweight and comfortable for animals.
• Potential risks and challenges, such as injuries or infections, must be managed.

Challenges Associated with Radio Collars:

Festering Neck Wounds and Septicaemia:

• Two cheetahs in Kuno died due to suspected septicaemia caused by festering neck wounds from radio collars.
• Additional cheetahs, including Oban, Elton, and Freddie, have exhibited similar injuries.
• These setbacks have raised concerns about the use of radio collars in the cheetah reintroduction project.

Problems with Long-term Collar Usage:

• Carrying something on the body for an extended period can have downsides, as seen in studies on watch wearers and pet dogs.
• Staphylococcus aureus bacteria presence was higher on watch wearers' wrists, which can lead to sepsis or death.
• Dogs wearing collars can develop acute moist dermatitis or hot spots, aggravated by ticks or fleas.
• Tight-fitting collars can cause pressure necrosis and rapid hair loss around the neck, similar to bedsores.

Weight Considerations:

• Globally, the general guideline is to keep radio collar weight below 3% of the animal's body weight.
• Modern collars for wild cats typically weigh around 400g, which is suitable for cheetahs weighing between 20 kg and 60 kg.
• However, fitting collars on cheetahs can be challenging due to their small necks, especially for younger animals.

Vulnerability to Collar-Induced Injuries:

• Cheetahs' winter coat, which is thicker and furrier than that of tigers or leopards, can retain more water and take longer to dry.
• In a 2020 study, the collar weight rule was criticized for not considering animal athleticism, revealing that collar forces can surpass the collar's weight during movement.
• For instance, the forces exerted by collars were found to be generally equivalent to up to five times the collar’s weight for a lion and a staggering 18 times for a cheetah.
• African Cheetahs may be more susceptible to local pathogens compared to Indian tigers and leopards, potentially due to differences in immunity and environmental conditions.

Lack of Adaptation to Monsoon Conditions:

• Secondary bacterial infections under collars are not commonly reported in African conditions due to drier skin between rain spells.
• In historical times, cheetahs in India did not wear collars during the monsoon and may have adapted differently to the local climate.

Implications for the Reintroduction Project:

• Tracking, immobilizing, and assessing cheetahs for neck injuries poses challenges and potential delays.
• The absence of a clear roadmap for the next monsoon raises questions about re-collaring cheetahs and their well-being.

What is Cheetah Reintroduction Project in India?

About:

• The Cheetah Reintroduction Project in India formally commenced on September 17, 2022, with the objective of restoring the population of cheetahs, which were declared extinct in the country in 1952.
• The project involves the translocation of cheetahs from South Africa and Namibia to Kuno National Park in Madhya Pradesh.

Reintroduction Process:

• 20 radio-collared cheetahs were translocated from South Africa (12 cheetahs) and Namibia (8 cheetahs) to Kuno National Park.
• In March 2023, India announced the birth of 4 cubs to one of the eight cheetahs that were relocated from Namibia.
• The cheetahs underwent a quarantine period and were then shifted to larger acclimatization enclosures.
• Currently, there are 11 cheetahs in free-ranging condition and 5 animals, including a cub, in quarantine enclosures.
• Dedicated monitoring teams ensure round-the-clock monitoring of the free-ranging cheetahs.

Mortalities:

• 8 cheetahs have died in Kuno National Park due to natural causes.
• Preliminary analysis by the National Tiger Conservation Authority (NTCA) indicates that the deaths were natural and not related to other factors like radio collars.

Project Implementation and Challenges:

• The project is implemented by the NTCA in collaboration with the Madhya Pradesh Forest Department, Wildlife Institute of India (WII), and cheetah experts from Namibia and South Africa.
• Challenges in the project include monitoring, protection, and management of the reintroduced cheetah population.

Conservation Efforts and Measures:

• Consultation with international cheetah experts and veterinary doctors from South Africa and Namibia is ongoing to investigate the cause of cheetah deaths.
• Independent national experts are reviewing monitoring protocols, protection status, managerial inputs, veterinary facilities, training, and capacity building.
• Efforts are underway to establish a Cheetah Research Center, expand forest areas under Kuno National Park's administrative control, provide additional frontline staff, establish a Cheetah Protection Force, and create a second home for cheetahs in Gandhi Sagar Wildlife Sanctuary.
• The government is committed to conserving the reintroduced cheetah population and ensuring its long-term success.