UPSC Daily Current Affairs- 1st January 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS-II

How the Northeast was ‘invented’, 52 years ago?

Subject: Polity and Governance

Why in News?

On December 30, 1971, two pivotal laws were enacted, reshaping the administrative landscape of Northeast India.

• These laws marked a transition from the traditional unit of Assam to the broader concept of ‘Northeast India’.

Formation and Composition of Northeast India

• States in the Northeast: The region officially includes Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura, under the North-Eastern Council.
• Pre-Independence Structure: Before Independence, Arunachal Pradesh, Assam, Meghalaya, Nagaland, and Mizoram were part of colonial Assam. Manipur and Tripura were princely states with British political officers, while Sikkim, under British paramountcy, became an independent country in 1947 and was annexed by India in 1975. Sikkim joined the North-Eastern Council in 2001.

Colonial Context and Frontier Province Dynamics

• Assam as a Frontier Province: Colonial Assam was a frontier province in British India, akin to the North West Frontier Province (now Khyber Pakhtunkhwa, Pakistan).
• Administrative Divisions: The province was divided into ‘settled districts’ (like present-day Assam and Sylhet in Bangladesh) and ‘excluded areas’ or ‘Hill areas’ (like modern-day Arunachal Pradesh and parts of Nagaland).

Post-Independence Security and Administrative Shifts

• Unique Post-1947 Challenges: After 1947, the region’s borders became largely international, with a narrow land corridor connecting it to the rest of India.
• Creation of Nagaland: The state of Nagaland was created in 1963, following the Sino-Indian War of 1962, as part of efforts to integrate the Naga people into the Indian state.

North-Eastern Areas (Reorganisation) Act of 1971

• Statehood and Union Territories: Manipur and Tripura were elevated to statehood, Meghalaya was formed from Assam, and Mizoram and Arunachal Pradesh were established as union territories, later becoming states in 1987.
• Strategic Reorganization: This Act represented a strategic shift from the colonial frontier governance to a modern state structure.

Concept and Implications of ‘Northeast India’

• Directional Naming and Identity: The term ‘Northeast India’ highlights the region’s distinct identity and its hierarchical relation to the Indian heartland.
• Racial and Cultural Dimensions: The term ‘Northeasterner’ has often led to racial stereotyping and issues of identity and recognition.

Conclusion

• Complex Administrative Evolution: The formation of Northeast India is a testament to the region’s complex history and the Indian state’s response to unique geopolitical challenges.
• Continued Struggle for Recognition: Despite legislative milestones, Northeast India continues to face challenges in national integration, identity politics, and equitable development.

Source: Indian Express

Proposed Health Tax on Sugar and High-Calorie Foods in India

Subject: Governance

Why in News?

Public health researchers recommend a health tax of 20% to 30% on sugar, sugar-sweetened beverages (SSBs), and high-fat, salt, and sugar (HFSS) products, in addition to the existing GST.

• The recommendation stems from a UNICEF-funded project, aiming to influence policies to reduce sugar consumption.

Study Insights and Recommendations

• Targeting Bulk Consumers: The study suggests taxing bulk consumers like confectionery manufacturers, rather than household sugar purchases.
• Definition of Sugar: The study includes all forms of refined, unrefined sugar, and gur (brown cane sugar) used by manufacturers.
• Impact on Manufacturers: Manufacturers, who buy up to 55% of India’s annual sugar production, are expected to be more price-sensitive than households.

Tax Implications and Demand Reduction

• Niti Aayog’s Interest: Niti Aayog is exploring the impact of health taxes and warning labels on food products to promote healthy eating in India.
• Current and Proposed Tax Rates: Sugar is currently taxed at 18% GST. The proposed additional tax could raise the total tax to 38-48%.
• Price Elasticity Metric: The study uses ‘Price Elasticity’ to estimate demand reduction. A 10% price increase could lead to a 2% demand reduction for households and a 13-18% reduction for manufacturers.
• Health Tax on Beverages and HFSS Products: A 10-30% health tax on SSBs could decrease demand by 7-30%, while a similar tax on HFSS products might lead to a 5-24% decline.

Government Revenue and Public Health Impact

• Increase in Tax Revenues: Additional taxes could boost government revenues by 12-200% across different scenarios.
• Current Tax Rates on Products: Sugar attracts 18% GST, SSBs 28% GST plus 12% cess, and HFSS products 12% GST.
• Public Health Benefits: Higher taxes on unhealthy foods could reduce obesity, diabetes, cardiovascular diseases, and certain cancers.

India’s Sugar Consumption and Health Risks

• India’s Sugar Intake: India is the world’s largest sugar consumer, with an average consumption of 25 kg per person per year, exceeding WHO recommendations.
• Rise in Sugar-Related Health Issues: There has been a significant increase in the sale of aerated drinks and HFSS food products, contributing to obesity and diabetes.

Taxation and Reformulation

• Encouraging Product Reformulation: The proposed tax rate is linked to sugar volume, encouraging manufacturers to reduce sugar content in products.
• Taxing Sugar Replacements: The study also recommends taxing artificial sweeteners to prevent manufacturers from switching to cheaper, unhealthy alternatives.

Global Precedents and Outcomes

• Health Tax Implementation Worldwide: Over 70 countries, including Mexico, Chile, and South Africa, have implemented health taxes on sugar and related products.
• Positive Outcomes in Mexico: In Mexico, the taxation on SSBs led to decreased consumption of taxed beverages and a reduction in mean BMI among younger age groups.

Conclusion

• Potential for Health Improvement: Imposing a health tax on sugar and related products could significantly contribute to public health improvement in India.
• Consideration of Economic Factors: The success of such a policy will depend on balancing health benefits with economic impacts on consumers and manufacturers.

Source: Indian Express

GS-III

Evolution of Genomic Medicine: Research to Mainstream Healthcare

Subject: Science and Technology

Why in News?

Over the past two decades, genomics and the use of genetic information in healthcare have undergone significant transformations.

• Once limited to major research centers, personal genome sequencing has become widely accessible, empowering individuals with detailed knowledge of their genetic makeup.

Role of Advancements in Sequencing Technologies

• Reduced Costs: The affordability of genome sequencing, particularly due to advancements in next-generation sequencing, has democratized access to genetic information.
• Population-Wide Projects: This accessibility has spurred large-scale initiatives aiming to use genetic data for healthcare improvements, including population-scale whole genome sequencing.

Applications and Implications of Personal Genome Sequencing

• Tailored Treatments: Personal genome sequencing enables customized treatments based on individual genetic profiles and predicts susceptibility to specific diseases.
• Incidental Findings: Comprehensive genetic tests often reveal additional genetic abnormalities beyond their initial purpose, known as incidental or secondary findings.

Guidelines and Recommendations on Incidental Findings

• ACMG Recommendations: In 2013, the American College of Medical Genetics and Genomics recommended disclosing certain incidental findings from whole exome or genome sequencing that could benefit individuals.
• Expanding List of Conditions: The ACMG has expanded its list of reportable conditions, with the latest version including 97 disorders and 81 genes related to cardiovascular, metabolic disorders, and cancer.

Prevalence and Impact of Incidental Findings

• Population-Scale Studies: Studies in various populations, including the Indian population, have revealed the prevalence of underdiagnosed diseases like cardiac channelopathies and familial hypercholesterolemia.
• Significance of Findings: While there is evidence supporting the medical benefits of disclosing incidental findings, their population-scale impact remains limitedly understood.

Case Study: Iceland’s Genetics Research

• Iceland’s Unique Demographics: Iceland’s historical demographic isolation and early initiation of population-level genome sequencing have made it a focal point in genetics research.
• Research on Lifespan and Genetic Variants: A study in Iceland suggested that actionable incidental genetic variants could potentially improve lifespan, with significant findings related to cancer-related genotypes.

Future of Genome Sequencing and Healthcare

• Increasing Accessibility: As genome sequencing becomes more accessible and affordable, regular population-scale sequencing and newborn sequencing initiatives are becoming more feasible.
• Benefits for Population Health: Widespread implementation of these programs could provide medically actionable insights, enabling proactive and effective disease treatment and prevention.

Conclusion

• The advancements in genomics are paving the way for a more proactive and personalized approach to healthcare, with significant potential for disease prevention and management.

Source: The Hindu

Card-on-File Tokenization

Subject: Economy

Why in News?

Recently, the Reserve Bank of India (RBI) has enabled card-on-file tokenisation (CoFT) through card-issuing banks and institutions.

Background:-

• It is to make digital payments more secure, safe and sound.

About Card-on-File Tokenization:-

• The central bank introduced Card-on-File Tokenization (CoFT) in September 2021 and began implementation on October 1, 2022.
• Objective: to enhance convenience for cardholders in getting tokens created and linking them to their existing accounts with e-commerce applications.
• Tokenization is the replacement of actual credit and debit card details with an alternate code called the “token”, which will be unique for a combination of card, token requestor, and device.
• A CoF transaction occurs when a cardholder authorizes a retailer to store the cardholder’s Mastercard or Visa payment information.
• The cardholder then authorizes the business to charge the stored Mastercard or Visa account.
• Card information is typically stored in the systems of e-commerce companies, airlines, and supermarket chains.
• Significance: The move will facilitate the creation and linking of tokens to cardholders’ existing accounts with e-commerce applications.

Benefits of tokenization:-

• Enhanced safety and security: It eliminates the risk of storing card details online and ensures the uncompromised convenience of storing customer’s token details on the merchant site.
• Quicker checkouts: Tokenized Mastercard will allow the convenience of quick checkouts as one doesn’t need to punch in the card number for each purchase.
• No more ‘False Declines’: Many times, legitimate online payments using valid cards are declined on the grounds of the transaction looking like a fraud. With tokenization, this becomes a thing of the past as the usage of tokens for payments confirms the security of the highest order.
• Easy card management: With tokenization, one can also keep track of all their cards and the merchants they have been tokenized with.
• No need for a physical card
• Added benefits: Tokenization also comes with cashback benefits when secured with platforms like Amazon, Paytm, Swiggy, etc

Source: Business Standard

Wang’s Garden Lizard

Subject: Environment and Ecology

Why in News?

Recently, a new reptile species Wang’s Garden Lizard was discovered in China.

About Wang’s Garden Lizard:-

• Scientific Name: Calotes wangi.
• The lizard has been named Calotes wangi or Wang’s garden lizard.
• It measures under 9 centimetres long.
• It has an orange-hued tongue that distinguishes it.
• The name honors Professor Yuezhao Wang, former director of the Chengdu Institute of Biology’s herpetology museum, for his contributions.
• It lies on sloping shrub branches at night, sleeping close to the branches.
• It eats a variety of insects, spiders, and other arthropods. 
• It is active from April to October every year, while in the tropics it is active from March to November or even longer.

Source: MSN

Foreign Exchange Management Act (FEMA)

Subject: Economy

Why in News?

The Reserve Bank of India (RBI) today released a draft ‘Licensing Framework for Authorised Persons (APs)’ under Foreign Exchange Management Act (FEMA), 1999 recently..

Background:-

• According to RBI release, the focus of the draft norms is on rationalising the authorisation framework for money changers in view of the widespread availability of banking services to public, to look at alternate models for facilitating foreign exchange related services and improve the scope of services being offered by AD-Category II entities.
• It added that it will also review the regulatory framework for APs.

About Foreign Exchange Management Act (FEMA):-

• FEMA, is responsible for managing and regulating foreign exchange.

Historical Background:-

• FEMA came in 1999 as a successor to the Foreign Exchange Regulation Act, or FERA, of 1973, with changing economic conditions in post-liberalisation India.
• Objective: to facilitate external trade and payments and promote the orderly development and maintenance of the foreign exchange market in India.
• FEMA deals with provisions relating to procedures, formalities, dealings, etc. of foreign exchange transactions in India.
• Under the FEMA, which came into force with effect from 1st June 2000, all transactions involving foreign exchange have been classified either as capital or current account transactions.
• Current Account Transactions: All transactions undertaken by a resident that do not alter his / her assets or liabilities, including contingent liabilities, outside India are current account transactions.
• Example: payment in connection with foreign trade, expenses in connection with foreign travel, education etc.
• Capital Account Transactions: These includes those transactions which are undertaken by a resident of India such that his/her assets or liabilities outside India are altered (either increased or decreased).
• It offers provisions for the gradual liberalization of capital account transactions and is consistent with full current account convertibility.
• As it specifies the regions requiring certain authorization from the Reserve Bank/Government of India on the acquisition/holding of foreign exchange, it is more clear in its application.
• A person living in India who had previously resided outside the country is given complete freedom to own, possess, and transfer any foreign securities or real estate obtained while residing outside of India.
• Citizens of India who live outside of India are not covered by FEMA.
• This Act is not only applicable to residents of India within India but also applicable to all branches, offices and set-ups outside India which are owned or controlled by a person resident in India.

Source: The Hindu