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India's commitment to achieving net-zero carbon emissions by 2070 presents a significant challenge, with only 45 years remaining to reach this ambitious target. The path to net-zero requires a balancing act between economic development, energy security, and climate adaptation. India’s efforts to meet its climate goals will be shaped by multiple factors, including resource constraints, land use, and financial limitations.

Why Net-Zero at All?

• Scientific Consensus on Climate Change
  • Climate change is a growing concern, with the global temperature rise already reaching 1.1°C above pre-industrial levels.
  • To avoid catastrophic impacts, the world needs to limit the temperature rise to 1.5°C. The remaining global carbon budget for this target is around 400-500 billion tonnes of CO?.
• Necessity of Sharp Emission Reductions
  • Countries must drastically reduce emissions to stay within the carbon budget. Achieving net-zero emissions is essential for maintaining global climate stability.

Equity in Net-Zero Transitions

• Developed vs. Developing Countries
  • Developed nations, historically responsible for a large share of emissions, are expected to lead the transition. However, they have not met the financial and technological support commitments for developing countries.
  • Developing nations like India, with low per capita emissions, are under pressure to balance climate action with economic development.
• Climate Justice
  • India’s per capita emissions are among the lowest globally, but the richest 10% of Indians contribute significantly to national emissions, exacerbating inequality.
  • The impacts of climate change disproportionately affect the economically weaker sections, making the transition to net-zero not only an environmental challenge but a social justice issue as well.

The Challenge of Balancing Development and Sustainability

• Limits of India’s Resources
  • India faces resource constraints, including land, water, and biodiversity, which limit the feasible expansion of renewable energy capacity.
  • Meeting energy demands while ensuring food security, forest cover, and biodiversity preservation becomes increasingly challenging as energy requirements rise.
• Sustainable Consumption vs. Aspirational Lifestyles
  • India’s aspiration to emulate the developed world’s lifestyle is unsustainable due to limited resources, which could lead to severe consequences like groundwater depletion, heat stress, and biodiversity loss.
  • The focus should be on sufficiency consumption corridors, ensuring that consumption meets developmental goals without exceeding sustainable limits.

Projected Power Demand and Renewable Energy Targets

• Rising Power Demand
  • India’s power demand could increase nine to ten-fold by 2070. Meeting this demand entirely via renewable energy requires significant expansion in energy generation capacity:
    1. 5,500 GW of solar energy
    2. 1,500 GW of wind energy
• Land Use Constraints
  • To meet these targets, India must address land-use trade-offs. Expanding beyond 3,500 GW of solar and 900 GW of wind would require significant compromises in land availability for other uses, including agriculture and conservation.

Strategic Pathways to Net-Zero: Demand and Supply Measures

• Demand-Side Measures
  • Energy-efficient construction: Use of better materials and passive designs to reduce cooling energy demand.
  • Urban transport: Shift to public and non-motorized transport to reduce energy consumption in cities.
  • Dietary choices: Promoting sustainable dietary practices to reduce the carbon footprint of food systems.
  • Electrification: Focus on alternative fuels and energy-efficient appliances.
• Supply-Side Measures
  • Decentralization of Energy Production: Expanding rooftop solar panels and solar pumps for agriculture.
  • Nuclear Power Expansion: Increase nuclear energy to provide a low-carbon baseload and complement renewable sources like solar and wind, which are intermittent.

The Role of International Cooperation and Financial Support

• Global Cooperation
  • Global climate action requires alignment between national interests, which may not always coincide, as seen in the context of the U.S. presidential election potentially influencing global climate policy.
  • India’s path to net-zero depends heavily on international climate financing, technology transfer, and collaborative efforts to address climate justice.
• Equitable Financing for Developing Countries
  • Developed countries are expected to provide financial support to developing nations like India to achieve climate goals. However, this support has been insufficient to date.

Conclusion: India’s Balancing Act

India faces a challenging balancing act as it seeks to provide quality of life for its growing population while achieving its climate adaptation and mitigation goals. The path to net-zero will require careful management of economic growth, energy production, and resource conservation. India must focus on demand-side strategies to reduce energy consumption and increase efficiency while expanding renewable energy infrastructure in a sustainable manner. Additionally, international cooperation and financial support will be crucial in ensuring that India’s transition to net-zero is equitable, efficient, and aligned with its developmental priorities.

In News:

Andhra Pradesh's (AP) natural farming model presents a transformative opportunity to reshape the state’s agricultural landscape by 2050. An analysis by the Food and Agriculture Organization (FAO), in collaboration with the AP government, reveals how scaling natural farming could employ more farmers, increase incomes, and foster sustainable agricultural practices, potentially surpassing the benefits of conventional industrial agriculture.

AgroEco2050: Exploring Two Agricultural Futures

The AgroEco2050 initiative aimed to envision two possible futures for Andhra Pradesh’s agricultural systems by 2050:

• Industrial Agriculture Path: Focusing on intensification of conventional farming, relying heavily on chemicals, machinery, and monocultures.
• Natural Farming Path: Expanding agroecological practices, relying on regenerative, chemical-free farming methods to create more jobs, better livelihoods, and improve the environment.

The study compared these pathways, analyzing their impacts on employment, income, food production, biodiversity, and land use.

Key Findings: Natural Farming’s Impact on Employment and Income

• Employment Growth
  • By 2050, natural farming would employ twice as many farmers as industrial agriculture: 10 million compared to 5 million.
  • Unemployment in natural farming would decrease to 7%, in stark contrast to a projected 30% unemployment rate in the industrial agriculture scenario.
• Farmer Income
  • Natural farming is expected to be more profitable for farmers due to lower input costs (seeds, fertilizers, machinery) and higher market prices for high-quality produce.
  • The income gap between farmers and non-farmers, which stood at 62% in 2019, would decrease to 22% under natural farming by 2050, a sharp improvement compared to the 47% gap predicted under industrial agriculture.

What is Natural Farming?

Natural farming is an ecological, chemical-free farming system that emphasizes the use of locally available resources. Key practices include:

• Biodiversity-based pest management
• On-farm biomass recycling (e.g., mulching)
• Indigenous techniques like using cow dung and urine for soil fertility.

Globally recognized as a form of regenerative agriculture, it offers a sustainable alternative to industrial agriculture by sequestering carbon and restoring soil health.

Global Adoption

States like Andhra Pradesh, Karnataka, Himachal Pradesh, and others are already adopting natural farming. While still evolving, its acceptance among farmers is steadily growing.

Zero Budget Natural Farming (ZBNF) in Andhra Pradesh

Origin and Growth

• In 2016, Andhra Pradesh launched the Zero Budget Natural Farming (ZBNF) initiative to offer a sustainable alternative to capital-intensive agriculture.
• This program, implemented by RythuSadhikaraSamstha, targets covering 6 million farmers across 6 million hectares.

National Recognition

The ZBNF approach gained national attention when it was featured in the 2019 Union Budget, aimed at doubling farmers' incomes by 2022. The central government now promotes this model under the Paramparagat Krishi Vikas Yojana (PKVY).

Challenges in Scaling Natural Farming

• Farmer Training and Support
  • Farmers need ongoing education and support to transition effectively to natural farming. Current training systems often fail to address the full scope of their needs.
• Certification Barriers
  • The certification process for organic farming, including Participatory Guarantee Systems (PGS) and third-party certifications, is complex and costly, presenting a barrier for small-scale farmers.
• Marketing and Procurement Challenges
  • There is a lack of effective marketing systems for organic products, which hampers the ability of farmers to sell their produce at fair prices.
  • Without strong procurement or buy-back systems, farmers may struggle to find markets for their products.
• Policy and Funding Gaps
  • Organic and natural farming programs still receive minimal funding compared to subsidies for chemical fertilizers, impeding large-scale adoption.
  • Slow state-level implementation and a continued reliance on chemical inputs also delay the widespread shift to natural farming.

Moving Forward

• Scientific Research on Yields
  • To address concerns about lower yields for staple crops, more scientific research is needed to assess the long-term viability of natural farming, especially for crops like wheat and rice, which are crucial for India’s food security.
• Localized Adoption
  • Natural farming may be best suited for non-staple crops or localized farming, balancing sustainability with the need for food security.
• Risk Mitigation for Food Security
  • Careful evaluation of natural farming’s impact on staple crop yields is necessary to avoid the food security risks witnessed in countries like Sri Lanka, where a sudden shift to organic farming led to reduced yields and increased prices.

Conclusion

The Andhra Pradesh natural farming model offers a promising alternative to industrial agriculture, with the potential to create jobs, improve farmers' incomes, and promote environmental sustainability. However, for this vision to become a reality, significant efforts must be made to address challenges related to training, certification, marketing, and funding. With continued research, policy support, and community involvement, natural farming can play a crucial role in feeding the future and promoting a more sustainable agricultural system.

Introduction

• LignoSat is the world's first satellite constructed with wood, developed to test the viability of using timber as a sustainable material in space exploration.
• Launched on November 5, 2024, the satellite was sent to the International Space Station (ISS) aboard a SpaceX Dragon cargo capsule and will be released into orbit after a month for a six-month test.

What is LignoSat?

• Dimensions: LignoSat measures 4 inches (10 cm) on each side and weighs 900 grams.
• Material Composition: The satellite features panels made from magnolia wood using traditional Japanese craftsmanship, without screws or glue.
• Development Collaboration: LignoSat was developed by Kyoto University and Sumitomo Forestry, in collaboration with various researchers and space organizations.

Purpose and Objectives of the Mission

• Testing Timber in Space:
  • The primary goal is to study how wood performs in the extreme conditions of space, where temperatures fluctuate dramatically between -100°C to 100°C.
  • The satellite will also assess how wood interacts with space radiation and its potential to reduce the impact of radiation on sensitive electronics, such as semiconductors.
• Space Sustainability:
  • LignoSat aims to demonstrate that wood can be a sustainable, renewable alternative to metals (like aluminium) traditionally used in spacecraft construction.
  • The satellite will help determine if wood can be used in future space missions, potentially reducing reliance on non-renewable materials.

Testing the Durability of Wood in Space

• Challenges of Space Environment:
  • Space is an extremely harsh environment with extreme temperature variations, exposure to radiation, and the lack of water and oxygen, all of which affect material durability.
  • Unlike Earth, where wood decomposes due to moisture and oxygen, space's vacuum conditions could potentially preserve the wood's integrity, providing valuable insights into its durability.
• Previous Use of Wood in Space:
  • Wood has already been tested in space applications: cork has been used on spacecraft to withstand re-entry conditions.
  • The LignoSat mission builds on this knowledge, aiming to test wood's performance in space's high-radiation and vacuum environment.

Potential Advantages of Using Wood in Space Exploration

• Sustainability and Environmental Benefits:
  • Unlike conventional aluminium satellites, which generate harmful pollutants upon re-entry (e.g., aluminium oxides), LignoSat's wooden components will degrade in a more environmentally friendly manner, minimizing atmospheric pollution.
  • As space exploration increases, particularly with mega-constellations (e.g., SpaceX’s Starlink), space debris management becomes critical. Using wood could reduce the environmental impact of satellite disposal.
• Renewable Resource:
  • Wood is a renewable resource, which offers a potential solution to the growing demand for materials used in space technology.
  • Kyoto University researchers have long been exploring the idea of building habitats on the Moon and Mars using timber, with LignoSat seen as a stepping stone to proving the material's space-grade capabilities.

LignoSat's Design and Construction

• Hybrid Construction:
  • While the outer panels of LignoSat are made from magnolia wood, the satellite still incorporates traditional aluminium structures and electronic components inside.
  • The hybrid construction allows researchers to compare the performance of wood against conventional materials used in spacecraft.
• Testing Methods:
  • LignoSat will orbit Earth for six months and monitor the wood’s reaction to space conditions, providing valuable data for future space missions.
  • Sensors embedded in the satellite will track various environmental factors, such as radiation exposure, temperature fluctuations, and the structural integrity of the wood.

The Long-Term Vision: Building Timber Habitats in Space

• The research team, led by Takao Doi (astronaut and Kyoto University professor), envisions a future where timber is used for constructing space habitats on the Moon and Mars.
• The team’s ultimate goal is to plant trees in space and develop timber houses on extraterrestrial bodies, providing a sustainable, self-sufficient environment for humans in space.

Broader Implications for Space Exploration

• Sustainability in Space Missions:
  • LignoSat represents an innovative step toward more sustainable space technologies by investigating eco-friendly materials that can minimize the environmental impact of space missions.
  • It aligns with global efforts to make space exploration more sustainable, especially as space tourism and colonization plans grow.
• Future Prospects:
  • If successful, LignoSat could pave the way for wood-based materials being used in spacecraft construction, not only for satellites but also for space stations and future human habitats in space.

Conclusion

• LignoSat’s mission marks a significant milestone in space exploration by exploring wood as a sustainable material in space technology.
• As the first wooden satellite, its results could pave the way for more eco-friendly, renewable materials in future space missions, aligning with global goals for sustainability and reducing space-related pollution.

In News:

India aspires to lead the world in 6G technology by 2030 through the Bharat 6G Mission. This initiative builds upon the successful rollout of 5G, which reached 98% of districts in just 21 months.

Key Features of 6G Technology

• Terahertz (THz) Frequencies: 6G will utilize THz waves capable of transmitting significantly more data than 5G, offering ultra-fast data rates.
• Massive MIMO (Multiple Input Multiple Output): Supports a large number of devices and simultaneous connections using multiple antennas, improving data transmission and reception.
• Network Slicing: Creates specialized, smaller networks tailored to specific traffic types, such as video streaming or industrial automation.
• Enhanced Security: Incorporates advanced encryption and authentication protocols to safeguard sensitive data.
• Ultra-Reliable Low Latency Communication (URLLC): Ensures ultra-low latency, critical for applications like industrial automation, virtual reality (VR), and augmented reality (AR).
• Integrated Intelligent Reflecting Surfaces (IIRS): Enhances signal strength and quality, particularly in areas with poor reception.
• High-Speed Data Transfer: Supports data communication over hundreds of GHz or THz frequencies, facilitating faster transfer rates.

Government Initiatives for 6G Development

Bharat 6G Vision and Strategy

• Goal: To design, develop, and deploy 6G technologies, ensuring secure, intelligent, and pervasive global connectivity.
• Core Principles:
  • Affordability, sustainability, and ubiquity aligned with the vision of Atmanirbhar Bharat (self-reliant India).
• Strategic Objectives:
  • Promote R&D through startups, universities, and industries.
  • Develop affordable 6G solutions and global IP contributions.
  • Focus on transformative applications to enhance quality of life.

Technology Innovation Group (TIG) on 6G

• Established: November 1, 2021.
• Task Forces:
  • Focus on multidisciplinary solutions, spectrum management, devices and networks, international standards, and R&D funding.

Bharat 6G Alliance

• A collaborative effort between Indian industry, academia, and research institutions to develop 5G advancements, 6G products, and patents.
• Global Alignment: Partners with organizations like the Next G Alliance (US), 6G Flagship (Finland), and South Korea’s 6G Forum.

Applications of 6G Technology

Application Area

Description

Healthcare

Real-time patient monitoring and AI-connected devices.

Agriculture

IoT and AI-driven predictive systems for crop health and irrigation.

Defense & Internal Security

Enhanced surveillance, communication, and unmanned operations.

Disaster Response

High-volume communication for emergency coordination.

Transportation

Ultra-low latency for urban air mobility and traffic management.

Education

High-speed remote learning, immersive AR/VR-enabled classrooms.

Metaverse

3D holographic displays and seamless virtual interactions.

Industrial Automation

Smart factories with enhanced operational efficiency through real-time data.

Smart Cities

Efficient urban infrastructure and real-time monitoring using IoT.

Entertainment & Media

Higher-quality streaming, immersive content delivery.

Environmental Monitoring

Real-time data collection for resource management and conservation.

Challenges in 6G Development

• Technical Complexity: Development of advanced components and subsystems makes 6G technology highly complex.
• Infrastructure Deployment: Significant investment and regulatory support are required for the necessary infrastructure upgrades.
• Spectrum Allocation: The limited availability of spectrum poses challenges in balancing competing demands for bandwidth.
• Security Concerns: High-speed data transmission increases vulnerability to cyber threats, necessitating robust security protocols.
• Standardization Issues: Achieving global consensus on standards for 6G interoperability can be slow and contentious.
• Global Collaboration: Effective international cooperation is critical for technological and regulatory alignment.

Conclusion

India’s Bharat 6G Mission represents a visionary approach to maintaining technological leadership in the rapidly evolving global digital landscape. By investing in research, fostering international collaborations, and pursuing policies aligned with Atmanirbhar Bharat, India can harness 6G to fuel socio-economic growth and strengthen global connectivity.

In News:

From November 11 to 22, 2024, global leaders will gather in Baku, Azerbaijan, for the 29th Conference of Parties (COP29) under the United Nations Framework Convention on Climate Change (UNFCCC). This year’s summit, known as the Finance COP, will focus on setting a new global climate finance target—the New Collective Quantified Goal (NCQG).

A key focus of the summit is the reduction of methane emissions, as countries aim to curb near-term temperature increases, which buys critical time for long-term CO2 reductions necessary for stabilizing climate change.

U.S.-China Collaboration and Methane Reduction

US-China Collaboration Despite Geopolitical Tensions

Despite ongoing geopolitical tensions, the United States and China have found common ground on the issue of methane reduction. Both nations recognize the importance of addressing methane emissions, which are more potent in the short term than CO2. They, along with the United Arab Emirates, organized a summit at COP28 to discuss methane and other non-CO2 pollutants.

China’s National Plan for Methane Emissions

In November 2023, China launched its first national methane reduction plan, emphasizing capacity-building efforts over explicit reduction targets. This plan marked a significant step in China’s climate policy, underscoring its commitment to mitigating methane emissions alongside the U.S.

Given that China and the U.S. are the two largest contributors to methane emissions globally, their collaboration presents a significant opportunity for global climate mitigation efforts. India, the third-largest emitter of methane, could benefit from this partnership by seeking financial support and technical expertise to address its methane challenges.

India’s Methane Emissions Profile and Challenges

Emissions Breakdown

India’s Third Biennial Update Report to the UNFCCC indicates that in 2016, India emitted approximately 409 million tons of CO2-equivalent methane. The major sources of these emissions include:

• Agriculture: 74% (mainly from livestock and rice cultivation)
• Waste: 14% (unmanaged organic waste in landfills and dumpsites)
• Energy: 11%
• Industrial processes: 1%

Due to the dominant role of agriculture, India has been cautious about committing to stringent methane reduction targets. Initiatives like the Global Methane Pledge, which calls for a 30% reduction from 2020 levels by 2030, have not been fully embraced.

Environmental and Health Impact of Methane Emissions

Methane-related fires at waste dumpsites, such as the Bhalswa dump in Delhi (2022), have highlighted the broader environmental and health risks of methane emissions. These fires contribute significantly to air pollution, making it urgent for India to address methane in its waste management and agricultural sectors.

India’s Initiatives for Methane Reduction

Waste Management Programs

• Comprehensive Waste Management Framework India’s waste management sector is a significant source of methane, contributing 14% of the nation’s total emissions. Although a comprehensive regulatory framework for waste management has been developed, implementation remains slow due to local capacity constraints and financial limitations.
• Innovative Solutions Indore, a city in Madhya Pradesh, has pioneered waste sorting and biomethane production. The city's initiative includes:
  • Sorting organic waste
  • Converting it into biogas to fuel city buses

This model has gained national attention and is being considered for replication in other cities.

• GOBARdhan Scheme Launched as part of the Swachh Bharat Mission-Urban 2.0, the Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) scheme encourages rural communities to convert cattle manure and other organic waste into biogas and compost, reducing methane emissions from livestock waste while providing additional income to rural households.

Agricultural and Livestock Emission Reduction

• National Mission for Sustainable Agriculture (NMSA) The NMSA promotes climate-resilient agricultural practices that reduce methane emissions. For example, Alternate Wetting and Drying (AWD) is a water-saving technique used in rice farming that reduces methane emissions by limiting anaerobic decomposition.
• National Livestock Mission Under the National Livestock Mission, practices such as improved fodder management, silage making, and Total Mixed Ration (TMR) feeding are being promoted. These practices reduce methane emissions from livestock by improving digestion and feed efficiency.

Opportunities for India at COP29

Leveraging U.S.-China Methane Partnership

COP29 offers India an opportunity to leverage the U.S.-China collaboration on methane reduction. By engaging with these two major emitters, India can seek:

• Financial support
• Technical assistance
• Capacity-building resources, particularly for its waste sector, which is a significant source of methane emissions.

Accurate data on methane emissions, such as satellite-based monitoring, can help India refine its emission inventories and enhance the effectiveness of its methane mitigation efforts.

Fast-Tracking India’s Methane Reduction Efforts

Although methane is not the primary focus at COP29, India has an opportunity to fast-track its efforts in methane reduction. The country's existing policies and initiatives, such as waste management programs and agricultural missions, provide a foundation upon which international collaboration can build.

Recent data from satellite monitoring in cities like Delhi and Mumbai shows that actual methane emissions from waste dumpsites may be 50%-100% higher than previously estimated, highlighting the urgency of addressing this issue.

Conclusion

Although methane may not dominate the COP29 agenda, it represents a critical pathway for India to accelerate its climate action. With the groundwork already laid through domestic policies and innovative solutions, India now requires enhanced financial and technical backing to scale up its methane reduction initiatives. By engaging proactively at COP29, India has a unique opportunity to secure the resources needed to tackle methane emissions, benefiting both its citizens and the global fight against climate change.

In News:

England over the past two-and-a-half years, reflecting a strategic shift in its approach to safeguarding gold reserves. This move marks a significant increase in the RBI's domestic gold holdings.

Rise in the RBI's Domestic Gold Holdings

• Current Status (September 2024):The RBI's domestic gold reserves have grown to 510.46 metric tonnes, up from 295.82 metric tonnes in March 2022.
• Reduction in Gold Held Abroad:The gold held under the custodianship of the Bank of England has decreased to 324 metric tonnes from 453.52 metric tonnes in March 2022.
• Gold as a Share of Foreign Exchange Reserves:The proportion of gold in India's total foreign exchange reserves increased from 8.15% in March 2024 to 9.32% in September 2024.

Gold Kept in the Bank of England

• Overview of the Bank of England's Gold Vault:The Bank of England is home to one of the largest gold vaults in the world, second only to the New York Federal Reserve, housing around 400,000 bars of gold.
• India’s Gold Held Abroad:The RBI continues to retain 324 metric tonnes of its gold with the Bank of England and the Bank for International Settlements (BIS).
• Additional Gold Management:Around 20 tonnes of gold are managed through gold deposit schemes.
• Strategic Role of London’s Gold Market:Storing gold in London provides immediate access to the global London bullion market, enhancing liquidity for India’s gold assets.

Historical Context of India’s Gold Holdings

• 1991 Balance of Payments Crisis:During a financial crisis in 1991, India had to send 47 tonnes of gold to the Bank of England to secure loans for repaying international creditors.

RBI’s Strategy to Bring Gold Back to India

• Global Trend of Central Banks Buying Gold:Since the imposition of U.S. sanctions on Russia in 2022, central banks globally have been increasing their gold reserves as a hedge against inflation and to reduce reliance on the U.S. dollar. India has outpaced other G20 nations in this trend, surpassing Russia and China in gold purchases.
• De-dollarisation:This shift is part of a broader strategy of de-dollarisation, aiming to diversify away from the U.S. dollar amidst rising gold prices and growing geopolitical tensions.

Significance of Repatriating Gold to India

• Sign of Economic Strength
  • Recovery from the 1991 Crisis:The decision to repatriate gold reflects a significant improvement in India's economic position, a stark contrast to the 1991 economic crisis when India had to pledge gold for financial survival.
• Optimizing Financial Resources
  • Reducing Storage Costs:Storing gold domestically allows the RBI to save on storage fees paid to foreign custodians, such as the Bank of England.
• Strategic Significance
  • Enhanced Resilience Amid Global Instability:By repatriating its gold, India enhances its strategic autonomy and strengthens its economic position in a world of rising uncertainties and currency volatility.

RBI's Capacity to Safeguard Gold Domestically

• Increasing Domestic Storage Capacity:The RBI has been increasing its domestic capacity for gold storage to accommodate rising reserves and reduce dependence on foreign gold safekeeping facilities.
• Current Foreign Exchange Reserves:As of October 2024, India’s total foreign exchange reserves stand at $684.8 billion, sufficient to cover over 11.2 months of imports.

Diversification of Foreign Exchange Reserves

• Mitigating Currency Risks:By increasing gold reserves, India diversifies its foreign exchange holdings, reducing reliance on any single currency and shielding itself from global currency fluctuations and economic volatility.
• Gold as a Stable Asset:Gold serves as a stable asset, providing a safeguard against global economic shocks, and balances India’s reserves portfolio.

Gold as a Hedge against Inflation

• Preserving Wealth amid Inflation:Gold is traditionally viewed as a hedge against inflation, maintaining or appreciating in value when other currencies weaken. By increasing its gold reserves, India positions itself to better withstand the adverse effects of inflation and ensure long-term financial stability.

Conclusion

The repatriation of gold by the RBI reflects a strategic move to bolster India's economic strength and diversify its financial assets. The decision to bring gold back to India not only signifies an improvement in India's economic fundamentals but also aligns with global trends of central banks increasing their gold reserves to ensure long-term stability and reduce reliance on the U.S. dollar.

In News:

The 16th edition of the Convention of Biological Diversity (CBD) in Cali, Colombia was concluded.

Key Agreements at COP-16

• Establishment of the Cali Fund
  • Purpose: To ensure equitable benefit-sharing from the use of Digital Sequence Information (DSI) on genetic resources.
  • Focus on Indigenous Communities: At least 50% of the Cali Fund will support Indigenous peoples and local communities, with special emphasis on women and youth.
• Creation of a Permanent Subsidiary Body
  • Inclusion of Indigenous Peoples: A new body will ensure the active participation of Indigenous groups in biodiversity conservation and policy discussions.
• Resource Mobilisation Strategy
  • Target Funding: The conference agreed on a strategy to secure USD 200 billion annually by 2030 to support global biodiversity initiatives.
  • Kunming Biodiversity Fund: A contribution of USD 200 million from China to support biodiversity funding.
• Management of Invasive Alien Species
  • New Guidelines: Proposals for databases, cross-border trade regulations, and enhanced coordination with e-commerce platforms to manage invasive species.
• Identification of Ecologically or Biologically Significant Marine Areas (EBSAs)
  • Enhanced Process: COP-16 agreed on an evolved process for identifying EBSAs, a critical aspect of marine conservation.
• Global Action Plan on Biodiversity and Health
  • One Health Approach: Approval of a global action plan to curb zoonotic diseases, promote health, and safeguard ecosystems.

India’s Contribution at COP-16

Updated National Biodiversity Strategy and Action Plan (NBSAP)

• Financial Commitment: India plans to invest ?81,664 crore (USD 9.8 billion) from 2025-30 on biodiversity conservation.
• Focus Areas: India highlighted efforts such as the establishment of the International Big Cat Alliance, expansion of Ramsar sites, and increased spending on biodiversity from 2018-2022.

International Finance Support

• Global Partnerships: India emphasized the need for international finance to meet biodiversity targets, particularly under the Kunming-Montreal Global Biodiversity Framework (KMGBF).

Key Outcomes from COP-16

• New Mechanisms for Biodiversity Conservation
  • Cali Fund: Ensures equitable benefit-sharing from genetic resources.
  • Permanent Subsidiary Body: Facilitates the inclusion of Indigenous peoples in policy-making.
• Funding and Resource Mobilization
  • USD 200 Billion Annually: Strategy to secure funding for biodiversity initiatives.
  • Redirecting Harmful Subsidies: Agreement to redirect USD 500 billion in harmful subsidies by 2030.
• Biodiversity and Human Health
  • Global Action Plan on Biodiversity and Health: Aimed at preventing zoonotic diseases and promoting human, animal, and environmental health.

Challenges in Biodiversity Protection

Key Threats to Biodiversity

• Population Growth and Resource Demand: Increasing population and demand for biological resources lead to over-exploitation.
• Habitat Degradation and Climate Change: Destruction of ecosystems and climate change threaten species globally.
• Invasive Species: Introduction of non-native species harms local biodiversity.
• Government Policies: Policies that prioritize development without environmental safeguards contribute to biodiversity loss.

Gaps in Global Biodiversity Framework

• Weak Legal Language: Concerns about insufficient legal protection for critical ecosystems.
• Lack of Implementation Mechanisms: Absence of mandatory review mechanisms for biodiversity targets.

Kunming-Montreal Global Biodiversity Framework (KMGBF)

Framework Overview

• Adoption: Adopted at COP-15 in 2022, the KMGBF sets 23 action-oriented targets for biodiversity by 2030.
• Key Goals: Includes restoring 30% of degraded ecosystems and reducing the risk of invasive species by 50%.

• Living in Harmony with Nature: The framework envisions achieving biodiversity targets and living sustainably with nature by 2050.

Way Forward: Moving from Agreements to Action

• Participation of Stakeholders - Inclusive Approach: Ensuring the involvement of all relevant stakeholders, including governments, businesses, and local communities, in biodiversity conservation.
• Integrated Resource Management - Ecosystem Approach: Promoting a holistic approach to managing biodiversity and natural resources.
• Strengthening Governance - Good Governance Practices: Encouraging better governance to prevent unregulated exploitation of natural resources.
• International Financial Support - Alignment with Financial Institutions: Aligning global financial institutions and multilateral development banks with biodiversity conservation goals.

In News:

• The WWF Living Planet Report 2024 highlights a drastic 73% decline in the average size of monitored wildlife populations globally from 1970 to 2020.
• The report underscores the urgent need for biodiversity conservation to maintain ecological balance, food security, and human health.

Key Findings of the 2024 Report

Wildlife Population Decline

• 73% Decline in monitored wildlife populations over the past 50 years (1970-2020).
• Freshwater species: Declined by 85%, the most significant drop.
• Terrestrial species: Declined by 69%.
• Marine species: Declined by 56%.

Main Threats to Wildlife

• Habitat Loss: Primary driver, particularly due to the expansion of food systems.
• Overexploitation: Over-hunting, fishing, and resource extraction.
• Invasive Species: Non-native species disrupt local ecosystems.
• Pollution: Water, air, and soil contamination, especially in Asia-Pacific.
• Disease: Emerging diseases impacting wildlife populations.

Ecosystem Risks and Tipping Points

• Decline in wildlife signals risks of ecosystem tipping points.
• Critical ecosystems, like the Amazon and coral reefs, face potential irreversible damage.
• Impact on global food security and livelihoods due to ecosystem collapse.

India’s Wildlife Status

• Vulture populations in India remain critically endangered.
• Tiger populations have increased to 3,682 (2022).
• Snow leopards have been successfully monitored with 718 individuals recorded.

Case Study: Chennai’s Wetland Loss

• 85% reduction in Chennai’s wetlands due to urban expansion, exacerbating flood and drought risks.
• Initiatives like the Tamil Nadu Wetland Mission aim to restore these wetlands to improve ecosystem resilience.

Impacts of Wildlife Decline

• Ecosystem Imbalance
  • Disruption in predator-prey relationships, pollination, and nutrient cycles due to species decline.
  • Leads to ecosystem instability and potential collapse.
• Loss of Biodiversity
  • Reduced genetic diversity makes ecosystems less resilient to environmental changes.
  • Increases vulnerability to diseases, natural disasters, and climate change.
• Threats to Food Security
  • Pollinators like bees and insects are essential for crop yields.
  • Loss of pollinators threatens global food supply and agriculture.
• Human Health Implications
  • Healthy ecosystems regulate disease by controlling pest populations.
  • Declining biodiversity increases the risk of zoonotic diseases, such as COVID-19.
• Economic Consequences
  • Agriculture, fisheries, and tourism industries depend on healthy ecosystems.
  • Decline in wildlife can lead to job losses and economic instability.
• Cultural and Social Impacts
  • Wildlife holds cultural, spiritual, and recreational value for societies worldwide.
  • Loss of iconic species diminishes cultural identities and opportunities for nature-based tourism.

Challenges in Biodiversity Conservation

• Inadequate National Actions
  • Despite global commitments (e.g., Global Biodiversity Framework, Paris Agreement, UN SDGs), national actions are insufficient to meet 2030 biodiversity targets.
  • Risk of crossing tipping points that could lead to irreversible ecosystem degradation.
• Key Drivers of Biodiversity Loss
  • Habitat Loss: Driven by agriculture, urbanization, and infrastructure development.
  • Climate Change: Rising temperatures, extreme weather, and altered precipitation patterns.
  • Overexploitation: Unsustainable hunting, fishing, logging, and resource extraction.
  • Pollution: Industrial, agricultural, and plastic pollution disrupt natural habitats.
  • Invasive Species: Non-native species outcompeting and threatening native populations.
  • Lack of Funding: Inadequate financial resources for effective conservation.
  • Weak Policy and Enforcement: Poorly implemented habitat protection laws.
  • Human-Wildlife Conflict: Increased interactions between expanding human populations and wildlife.
  • Genetic Diversity Loss: Reduced genetic diversity makes species vulnerable to diseases and environmental changes.
  • Awareness Gaps: Insufficient public awareness on the importance of biodiversity.

Conclusion and Way Forward

Policy and Action Recommendations

• Expand protected areas and restore ecosystems to halt biodiversity loss.
• Engage Indigenous communities in conservation and land management practices.
• Promote sustainable farming, reduce food waste, and encourage plant-based diets to lessen food production impacts.
• Shift to renewable energy and reduce fossil fuel use to mitigate climate change.
• Redirect investments from environmentally harmful sectors to nature-friendly industries.

WWF-India’s Call for Collective Action

• WWF-India advocates for collective action to align climate, conservation, and sustainable development policies.
• The goal is to ensure a resilient and thriving future for both biodiversity and human societies.

Overview

The Economic Advisory Council to the Prime Minister (EAC-PM)'s report titled "Relative Economic Performance of Indian States: 1960-61 to 2023-24" highlights an alarming trend of widening economic disparities across India's states, which is increasingly threatening the principles of federalism and national unity. The findings reveal significant regional imbalances in terms of contributions to the national income, per capita income, and overall economic development. This analysis delves into the key insights from the report and explores the broader implications for India's federal structure, governance, and policy approaches.

Key Insights from the Report

• Regional Economic Disparities:
  • Western and Southern States' Dominance: States such as Maharashtra, Gujarat, Tamil Nadu, and Karnataka have consistently outperformed others. These states have benefited from higher private investments, better infrastructure, and a more business-friendly environment. They also enjoy proximity to international markets, especially coastal regions like Gujarat and Tamil Nadu, which have access to ports and export markets.
  • Underperformance of Northern and Eastern States: On the other hand, northern states (with exceptions like Delhi and Haryana) and eastern states like Bihar, Odisha, and West Bengal lag behind in economic performance. These regions face challenges such as poor infrastructure, low levels of investment, and weak governance structures, which hinder their growth potential.
• Impact of Liberalization (1991):
  • The 1991 economic reforms marked a shift toward market-oriented growth, benefiting states that were already more industrialized or had better urban infrastructure. Southern states, in particular, adapted well to the liberalized environment, attracting higher levels of private investment and expanding their economies.
  • The liberalization process disproportionately favored urban centers like Delhi, Mumbai, Chennai, and Bengaluru, where investments were channelized into growing service sectors, technology, and industries, creating a feedback loop of wealth accumulation in these hubs. Meanwhile, the hinterland remained underdeveloped due to insufficient public investment and the lack of private sector interest in these regions.
• Investment Disparities:
  • Private Investment: Wealthier states attract a disproportionate share of private investment, which is driven by profitability and market opportunities. These states have better infrastructure, which reduces transaction costs and increases returns on investment. In contrast, underdeveloped states struggle to attract investment due to poor governance, inadequate infrastructure, and perceived higher risks.
  • Public Investment: While the public sector still plays a role in investment, the New Economic Policies (NEP) since 1991 have shifted the focus towards private sector-driven growth. This has further widened the investment gap, as the poorer states receive less public investment relative to their needs.
• Role of Infrastructure and Governance:
  • The availability and quality of infrastructure are significant determinants of economic performance. States with better roads, energy supply, ports, and communication networks tend to attract more investments. Additionally, good governance, characterized by reduced corruption, better policy implementation, and transparency, also plays a critical role in fostering economic development.
  • In contrast, states with weaker governance structures and poor infrastructure struggle to create an enabling environment for businesses, further compounding regional disparities.
• Impact on Federalism:
  • The growing economic divide is leading to tensions between the Centre and state governments, particularly in wealthier states that contribute significantly to national income but feel short-changed in resource allocation. These states argue that they are not receiving a fair share of national resources in return for their contributions, leading to growing dissatisfaction with the federal system.
  • The tension is exacerbated by political factors, such as accusations from opposition-led states that the Centre uses public investment to favor states aligned with the ruling party. The growing perception of politicization of resource allocation has the potential to undermine the spirit of cooperative federalism.

Structural Causes of Regional Inequality

• Economic and Investment Magnetism:
  • Wealthier states attract more private investments, as they offer better returns due to established markets, skilled labor, and urbanization. Cities like Mumbai, Delhi, and Bengaluru serve as economic magnets, drawing talent, technology, and capital, which further consolidates their economic dominance.
  • In contrast, states without such economic hubs or access to global markets struggle to attract investment. The absence of urban agglomerations and the concentration of wealth and resources in a few states perpetuate regional disparities.
• Policy and Investment Bias:
  • Post-liberalization policies have disproportionately benefited the organized sector, often at the expense of the unorganized sector, which is more prevalent in poorer states. The emphasis on industrial growth and infrastructure development has largely bypassed the rural and informal sectors, which are critical in underdeveloped states.
  • The organized sector has also benefited from government support, such as tax concessions and subsidized infrastructure, which have enabled these industries to thrive in already developed regions. This has widened the gap between the haves and the have-nots.
• Cronyism and the Black Economy:
  • Crony capitalism and the prevalence of the black economy in poorer states further exacerbate regional imbalances. In some cases, political patronage and corruption divert resources and investments from areas that need them most. This weakens the investment climate, especially in states with higher levels of informal and illegal economic activity.

Implications for Federalism

The growing economic disparity poses a serious threat to India's federal structure. The increasing dissatisfaction of wealthier states with the current fiscal arrangements and the growing demand for fairer resource allocation challenge the spirit of cooperative federalism. A well-functioning federal system relies on equitable distribution of resources and opportunities for all regions to develop.

Policy Recommendations

To address these disparities and strengthen India's federal framework, several policy measures need to be implemented:

• Enhancing Governance and Infrastructure in Lagging States:
  • Improved governance and reducing corruption are essential in attracting both private and public investments. Additionally, there must be a focus on developing critical infrastructure, such as roads, energy, and health facilities, which are essential for economic growth.
  • States need to increase public investment in sectors like education, healthcare, and social security to improve human capital and productivity.
• Focus on the Unorganized Sector:
  • A significant portion of the labor force in poorer states is employed in the unorganized sector. Policies should aim to formalize this sector by providing social security benefits, improving labor rights, and increasing productivity through skill development. This could help raise incomes and stimulate local demand, attracting more private investment.
• Balancing the Organized and Unorganized Sectors:
  • While the organized sector has benefited from liberalization, more attention should be given to the unorganized sector, which forms the backbone of the economy in many poorer states. A balanced approach to economic growth, which includes both organized and unorganized sectors, can help reduce disparities.
• Shifting Focus from Urban Centers to Hinterlands:
  • Private sector investment must be incentivized in underdeveloped regions through tax breaks, subsidies, and targeted infrastructure projects. This will encourage businesses to expand beyond the major urban centers, thus promoting a more balanced distribution of economic activities.

Conclusion

The widening economic divide in India, as revealed by the EAC-PM report, poses a significant challenge to the country's federalism and unity. To ensure inclusive and balanced development, policy reforms must focus on reducing regional disparities by improving governance, infrastructure, and investment in lagging states. A shift towards equitable growth, addressing the needs of both the organized and unorganized sectors, is essential to promoting national cohesion and ensuring sustainable economic progress across all regions.

Introduction

The Pradhan Mantri Mudra Yojana (PMMY) was launched by Prime Minister Narendra Modi on April 8, 2015, with the aim of providing financial support to non-corporate, non-farm small and micro enterprises in India. Through this initiative, loans are provided to individuals and small businesses who are unable to access formal institutional finance.

In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman announced an increase in the loan limit under PMMY from ?10 lakh to ?20 lakh, with the introduction of a new loan category, Tarun Plus, aimed at fostering growth in the entrepreneurial sector.

Key Features of the Pradhan Mantri Mudra Yojana

Loan Limit Increase

• Loan Limit Raised: The loan limit has been increased from ?10 lakh to ?20 lakh for eligible entrepreneurs.
• New Loan Category: The newly introduced Tarun Plus category caters to entrepreneurs who have previously availed and successfully repaid loans under the Tarun category.
• Credit Guarantee: The Credit Guarantee Fund for Micro Units (CGFMU) will cover these enhanced loans, further ensuring the security of micro-enterprises.

Categories of MUDRA Loans

PMMY provides collateral-free loans through financial institutions like Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs). These loans are provided for income-generating activities in sectors like manufacturing, trading, services, and allied agriculture activities.

Objectives of PMMY

1. Financial Inclusion: PMMY targets marginalized and socio-economically neglected sections of society, promoting financial inclusivity.
2. Support to Small Businesses: By providing affordable loans, the scheme encourages small-scale entrepreneurs, particularly women and minority groups, to establish and expand their businesses.
3. Fostering Entrepreneurship: PMMY aims to unlock the potential of India’s entrepreneurial spirit, especially in rural and underserved areas.

MUDRA: The Institutional Backbone

Role of Micro Units Development & Refinance Agency Ltd. (MUDRA)

MUDRA is the primary institution set up by the Government of India to manage and implement the Mudra Yojana. It acts as a refinancing agency that provides financial support to small and micro-enterprises by working through financial intermediaries, such as banks and micro-finance institutions.

Funding Sources

• Scheduled Commercial Banks
• Regional Rural Banks (RRBs)
• Small Finance Banks (SFBs)
• Non-Banking Financial Companies (NBFCs)
• Micro Finance Institutions (MFIs)

Application Process

Applicants can avail loans through any of the aforementioned financial institutions or apply online via the Udyami Mitra Portal.

Benefits of Pradhan Mantri Mudra Yojana

• Collateral-free Loans: No security is required to obtain loans, which reduces the financial burden on borrowers.
• Easily Accessible: PMMY loans are available across India, making them accessible to entrepreneurs in both rural and urban areas.
• Quick and Flexible Loans: Loans can be disbursed quickly with flexible repayment terms (up to 7 years).
• Empowering Women Entrepreneurs: The scheme offers special incentives for women entrepreneurs, helping them to establish and grow their businesses.
• Support to Rural Areas: Special emphasis on empowering rural enterprises and reducing regional disparities.
• MUDRA Card: The MUDRA Card is a RuPay debit card that allows borrowers to access funds through an overdraft facility, enhancing liquidity for businesses.
• No Default Penalty: In case of loan defaults due to unforeseen circumstances, the government will step in to reduce the burden on entrepreneurs.

Categories of Loans Under PMMY

1. Shishu Category: Loans up to ?50,000

• Targeted at micro-enterprises at the initial stage of their business journey.

2. Kishore Category: Loans between ?50,000 and ?5 lakh

• Targeted at enterprises looking to expand their operations and upgrade their infrastructure.

3. Tarun Category: Loans between ?5 lakh and ?10 lakh

• For established businesses that are in need of funds to scale up.

4. Tarun Plus: Loans between ?10 lakh and ?20 lakh

• A new category designed for entrepreneurs who have repaid loans under the Tarun category and wish to further expand their business.

Achievements of PMMY (2023-24)

• Total Loans Sanctioned: ?5.4 trillion across 66.8 million loans in FY 2023-24.
• Loans Disbursed: Significant amounts were disbursed under each category:
  • Shishu: ?1,08,472.51 crore
  • Kishore: ?1,00,370.49 crore
  • Tarun: ?13,454.27 crore
• Women Borrowers: A large share of loans have gone to women entrepreneurs, ensuring gender inclusivity.
• Minority Borrowers: The scheme also emphasizes financial empowerment of minority communities.
• NPA Reduction: The Non-Performing Assets (NPA) in Mudra loans have reduced to 3.4% in FY 2024, compared to higher levels in earlier years.

Digital Tools and Support Systems

MUDRA MITRA App

The MUDRA MITRA mobile app helps users access information about the PMMY scheme, loan application procedures, and other resources. The app is available for download on Google Play Store and Apple App Store.

Online Loan Application

Entrepreneurs can apply for loans online via portals such as PSBloansin59minutes and Udyamimitra, providing greater convenience and accessibility.

Steps to Improve Implementation

• Handholding Support: Assistance in submitting loan applications is available for applicants.
• Intensive Awareness Campaigns: The government conducts publicity campaigns to raise awareness about PMMY.
• Simplified Loan Process: The loan application forms have been simplified to encourage wider participation.
• Performance Monitoring: Regular monitoring of PMMY implementation to ensure its success.
• Interest Subvention: A 2% interest subvention is offered for prompt repayment of Shishu loans.

Conclusion

The Pradhan Mantri Mudra Yojana has been a transformative scheme in fostering entrepreneurship and ensuring financial inclusion for small and micro-businesses across India. With the recent increase in loan limits and the addition of the Tarun Plus category, the scheme continues to empower emerging entrepreneurs and provides a crucial lifeline for business growth and sustainability. By supporting women, minorities, and new entrepreneurs, PMMY has contributed significantly to economic upliftment and inclusive growth in the country.

Introduction

Recently, the Supreme Court of India expressed serious concerns about the ongoing issue of stubble burning in the states of Punjab and Haryana. The Court criticized the selective enforcement of penalties for stubble burning and emphasized that such practices violate citizens' fundamental right under Article 21 of the Indian Constitution, which guarantees the right to live in a pollution-free environment.

Court’s Observations on Stubble Burning

• The Supreme Court highlighted the failure of state governments in effectively implementing laws against stubble burning.
• Selective Enforcement: The Punjab and Haryana governments were accused of prosecuting only a few violators while allowing many others to escape punishment by paying a nominal fine.
• The Court observed that this approach is a blatant violation of the right to live in a pollution-free environment, which is guaranteed under Article 21 of the Constitution.

Right to a Pollution-Free Environment

• The Court emphasized that every citizen has the fundamental right to live in an environment free from pollution, as mandated by Article 21 of the Constitution.
• The Court questioned the effectiveness of current environmental regulations, specifically pointing out the lack of proper machinery to collect fines under Section 15 of the Environment (Protection) Act, 1986.

Impact of Stubble Burning

Stubble burning, primarily in the northern states of India, exacerbates air pollution, especially in Delhi and surrounding regions. The seasonal spike in air pollution during the months of October and November is largely attributed to farm fires. This not only worsens the air quality but also has severe implications for public health.

Environmental and Health Consequences

• Air Pollution: The burning of crop residues significantly contributes to the rise in PM2.5 and PM10 levels, leading to hazardous air quality.
• Soil Health: Burning crop residues depletes essential nutrients from the soil, reducing organic carbon content and harming soil fertility.

Health Risks

• Exposure to pollutants like particulate matter (PM) can lead to respiratory problems, heart diseases, and other health complications for the population, especially in densely populated areas like Delhi.

Legal and Institutional Shortcomings

• Inadequate Implementation: Despite laws and penalties being in place, the lack of an effective enforcement mechanism has resulted in the persistence of stubble burning.
• Toothless Penalties: The Supreme Court criticized the amended Section 15 of the Environment Protection Act, 1986, which replaced criminal penalties with financial fines for environmental violations. However, the lack of rules and appointed adjudicating officers has rendered this provision ineffective.
• No Serious Enforcement: The failure of the Central government and state authorities to implement effective penalties has led to widespread non-compliance with environmental laws.

Government Actions and Responses

Centre’s Efforts:

• The Central Government has introduced a Central Sector Scheme to promote agricultural mechanization for in-situ management of crop residue in Punjab, Haryana, Uttar Pradesh, and Delhi.
• The government provides financial assistance of up to 50% for the purchase of machinery, such as the Happy Seeder, to manage paddy stubble without burning.
• A total of ?3,062 crore has been released from 2018 to 2023 to tackle stubble burning.

State-Level Actions:

• The Punjab government has introduced cash incentives for farmers who refrain from burning stubble. Additionally, the state is offering non-fiscal incentives, such as access to panchayat land for storing paddy straw.
• The Pusa Decomposer, developed by the Indian Agricultural Research Institute (IARI), is a bio-enzyme used to decompose crop residue. It helps in turning the stubble into manure within 20-25 days, enhancing soil health.

Challenges for Farmers:

• Many farmers still prefer burning stubble due to high costs associated with alternative methods of residue management.
• The Happy Seeder and other machinery remain expensive and are not affordable for most small-scale farmers, leading them to resort to burning as the most cost-effective option.

Court’s Directive and the Way Forward

• The Supreme Court directed the Centre and state governments to ensure better enforcement of laws related to air pollution, vehicular emissions, and industrial pollution.
• The Court also urged the Union Government to consider Punjab’s request for additional funds to tackle the stubble burning issue and to strengthen the enforcement mechanism.
• Urgency for Action: The Court’s observations suggest that the existing framework needs urgent reforms to protect citizens’ right to a pollution-free environment.

Constitutional Provisions Related to Environmental Protection

India’s Constitution provides several provisions to ensure the protection of the environment:

Article 21: Right to Life and Environment

• In the landmark case Subhash Kumar v. State of Bihar (1991), the Supreme Court held that the right to life under Article 21 includes the right to a wholesome environment.
• This view was reiterated in Virender Gaur v. State of Haryana (1994), further strengthening the legal framework for environmental protection.

Directive Principles of State Policy

• Article 48A: The State is mandated to protect and improve the environment and safeguard forests and wildlife.
• Article 39(e) and 47: These Articles place a duty on the State to promote public health and ensure environmental protection.

Fundamental Duties

• Article 51A(g) places a duty on citizens to preserve and protect the environment.

Conclusion

The Supreme Court’s ruling highlights the urgent need for better implementation of environmental laws and the protection of citizens’ fundamental rights under Article 21. While government schemes are in place, a more robust and consistent approach is required to address the issue of stubble burning and air pollution. Immediate reforms in the enforcement mechanisms and incentives for farmers are crucial to achieve a sustainable, pollution-free environment in India.

In News:

The Convention on Biological Diversity (CBD), while historically overshadowed by climate change discussions, is now gaining increasing attention due to the growing recognition of the global biodiversity crisis. This evolving prominence highlights the need for urgent action to preserve ecosystems and halt biodiversity loss, which is intimately linked with the climate crisis.

Overview of the Convention on Biological Diversity (CBD)

• Origins and Objectives:
  • The CBD emerged from the 1992 Rio Earth Summit, alongside the UN Framework Convention on Climate Change (UNFCCC).
  • Main Goals:
  • Protect global biodiversity.
  • Restore ecosystems.
  • Ensure equitable distribution of the benefits derived from biological resources.
• COP16 and the Kunming-Montreal Framework:
  • The 16th Conference of Parties (COP16) marks the first meeting following the Kunming-Montreal Global Biodiversity Framework adopted at COP15 in 2022.
  • The framework sets out four key goals and 23 targets to be achieved by 2030, including:
  • Protect 30% of global lands and oceans by 2030.
  • Restore 30% of degraded ecosystems by 2030.

The Growing Convergence Between Climate Change and Biodiversity

• Interlinkages Between Climate Change and Biodiversity:
  • Mutual Impact:
  • Climate change accelerates biodiversity loss by altering habitats and threatening species.
  • In turn, ecosystem degradation contributes to climate change by releasing greenhouse gases (GHGs) from deforestation and soil degradation.
• Shared Drivers:
  • Both crises are driven by unsustainable human activities, including over-exploitation of natural resources, deforestation, over-consumption, and pollution.
• Increasing Synergy:
  • There is a growing realization of the need for integrated solutions that address both climate change and biodiversity loss simultaneously.
• Momentum for 30 x 30 Targets

• The 30 x 30 Commitment:
  • The 30 x 30 targets are central to the Kunming-Montreal Framework, which includes:
  • Conservation of 30% of the world's lands and oceans.
  • Restoration of 30% of degraded ecosystems.
  • These targets aim to ensure the preservation of biodiversity-rich areas and the restoration of degraded ecosystems globally by 2030.
• National Biodiversity Strategies and Action Plans (NBSAPs):
  • Countries are required to develop and submit their NBSAPs (akin to Nationally Determined Contributions (NDCs) for climate change).
  • As of now, only 32 countries have submitted their NBSAPs, with more expected during COP16.
• High Seas Treaty:
  • A crucial agreement for achieving 30 x 30 targets is the High Seas Treaty (also called Biodiversity Beyond National Jurisdictions (BBNJ)), which focuses on:
  • Establishing protected marine areas in biodiversity-rich regions beyond national jurisdictions.
  • Ensuring regulation of human activities in these areas.

Access and Benefit Sharing: The Case of Genetic Resources

• Genetic Resources and Their Exploitation:
  • The oceans, along with terrestrial ecosystems, harbor a wide variety of genetic resources that can be exploited for medical, commercial, and scientific purposes.
  • Advances in biotechnology and digital sequencing of genetic material have raised issues about the equitable sharing of benefits from these resources.
• Nagoya Protocol and Benefit Sharing:
  • The Nagoya Protocol (2010) set out guidelines for the access and fair sharing of benefits derived from genetic resources.
  • At COP16, discussions will center on how genetic sequences (used in products such as medicines, crops, etc.) can be used fairly, ensuring that indigenous communities, who may be the original custodians of these resources, benefit equitably.

Finance Mechanisms for Biodiversity Conservation

• Financial Targets:
  • One of the key goals of the Kunming-Montreal Framework is to mobilize $200 billion per year by 2030 for biodiversity conservation globally.
  • Developed countries are expected to contribute $20 billion annually to developing nations, increasing to $30 billion by 2030.
• Phasing Out Harmful Subsidies:
  • Countries are urged to eliminate perverse incentives that harm biodiversity, such as subsidies for:
  • Over-fishing.
  • Deforestation.
  • Fossil fuel consumption.
  • The goal is to repurpose such incentives to support sustainable practices and conservation efforts.
• New Financial Mechanisms:
  • COP16 discussions will also focus on creating innovative financial mechanisms, such as:
  • A biodiversity fund.
  • Biodiversity credits, similar to carbon credits, which would allow countries or organizations to offset their biodiversity loss by investing in conservation projects elsewhere.

Challenges and the Way Forward

• Implementation of 30 x 30 Targets:
  • The main challenge lies in translating ambitious goals into actionable plans at the national and local levels. Countries must not only submit action plans but also implement and monitor them effectively.
• Increased Global Cooperation:
  • Addressing biodiversity loss requires collaboration between countries, industries, and local communities to ensure that efforts are comprehensive and inclusive.
• Public Awareness and Engagement:
  • It is crucial to raise awareness about the importance of biodiversity conservation and the urgent need for collective action to mitigate the combined threats of biodiversity loss and climate change.

Conclusion: The Need for Urgent Action

The discussions at COP16 signal an important shift in how the world addresses biodiversity and its links to climate change. As countries continue to recognize the interconnectedness of these two crises, the outcome of the CBD negotiations could play a pivotal role in shaping global environmental policy. However, meeting the ambitious goals set forth by the Kunming-Montreal Framework requires strong political will, adequate financing, and effective global cooperation.

In News:

On October 17, eight coaches of the Agartala-Lokmanya Tilak Express derailed in Assam with no casualties. On October 11, a passenger train rear-ended a stationary goods train near Chennai, also with no casualties. Indian trains have been involved in multiple accidents of late. The Balasore accident on June 2, 2023, had the greatest death toll, more than 275, yet pressure on the Railways to improve safety competes with pressures straining its subsistence.

Railway Accident Trends

• Decline in Accidents Over Time:
  • From 1,390 accidents per year in the 1960s, railway accidents have reduced to about 80 accidents per year in the last decade.
• Recent Consequential Accidents:
  • 34 accidents in 2021-2022
  • 48 accidents in 2022-2023
  • 40 accidents in 2023-2024
• Primary Causes of Accidents:
  • 55.8% due to staff errors (railway personnel).
  • 28.4% due to non-staff errors.
  • 6.2% due to equipment failure.
• Role of Signalling Failures:
  • Major accidents, such as Balasore and Kavaraipettai, were attributed to signalling system failures.

Key Safety Technologies and Measures

• Kavach System:
  • Kavach is an automatic train protection system designed to prevent collisions by monitoring train positions and activating alarms or braking.
  • As of February 2024, Kavach was implemented on only 2% (1,465 route km) of the railway network, limiting its effectiveness.
• Signalling System Overhaul:
  • Outdated and faulty signalling systems contribute significantly to accidents. Both Balasore and Kavaraipettai incidents were linked to failures in signalling infrastructure.

Financial Strain on Indian Railways

• Operating Ratio (OR):
  • The Operating Ratio (OR) in 2024-2025 is estimated to be ?98.2, indicating that the Railways spends ?98.2 for every ?100 earned.
  • A higher OR reduces available funds for safety improvements and infrastructure upgrades.
• Budgetary Constraints:
  • The 2023-24 budget showed a 7.2% reduction in capital outlay for track renewal and a 96% decrease in the Depreciation Reserve Fund, which is used to replace aging assets.
• Revenue Imbalance:
  • Freight services account for 65% of Railways’ revenue but face capacity constraints, with 30% of the network operating at over 100% capacity.
  • Passenger services, however, continue to incur significant losses, with ?68,269 crore loss in 2021-22.

Challenges in Rail Infrastructure

• Slow Infrastructure Development:
  • The government's Dedicated Freight Corridors (DFCs), intended to alleviate congestion, are severely delayed:
  • The Eastern DFC is the only fully operational corridor.
  • Other corridors, including the Western DFC and additional planned routes, remain incomplete.
• Track and Equipment Maintenance:
  • Ongoing delays in upgrading and maintaining essential infrastructure (tracks, wagons, signalling) contribute to the rising number of accidents.

Loco Pilot Working Conditions

• Extended Working Hours:
  • Loco pilots often work 12-hour shifts due to manpower shortages, leading to fatigue and increased risk of human error.
  • Stress and exhaustion are significant contributors to accidents caused by human error, including Signal Passed at Danger (SPAD).

Recommendations for Improving Railway Safety

• Loco Pilot Vacancies:Immediate recruitment to fill the 18,799 vacant loco pilot positions to prevent overworking and reduce fatigue-related errors.
• Expand Kavach Deployment:Accelerate the nationwide installation of the Kavach system, particularly on high-risk and high-traffic routes, to enhance safety.
• Complete Dedicated Freight Corridors (DFCs):Expedite the completion of DFCs to ease congestion and increase freight movement efficiency.
• Independent Railway Safety Authority:Establish an independent Railway Safety Authority with statutory powers, as recommended by the Kakodkar Committee (2012), to enforce safety standards and monitor implementation.
• Improve Signal Infrastructure:Invest in advanced and reliable signalling systems to prevent errors stemming from outdated or malfunctioning infrastructure.
• Regulate Working Hours:Enforce strict work hour limits to reduce fatigue among railway staff and ensure proper rest between shifts.
• Strengthen Trackside Infrastructure:Install fencing along tracks in high-risk areas to prevent cattle run-overs, a common cause of derailments in rural and semi-urban areas.

Conclusion

• Indian Railways faces a complex set of challenges, balancing safety requirements with financial constraints. Despite technological advancements like Kavach, its limited deployment and outdated infrastructure continue to present significant risks.
• A holistic approach to reform is needed, including addressing manpower shortages, upgrading safety technologies, and investing in infrastructure development. This will be essential for reducing accidents, improving safety, and ensuring the long-term sustainability of India’s vast railway network.

Why is it in the News?

Regulatory panic could do more harm than good. Rather than poor risk management today, rules should anticipate the greater risks that lie ahead.

Context:

• The year 2024 will see 4.2 billion people go to the polls, which, in the era of artificial intelligence (AI), misinformation and disinformation may not be the democratic exercise intended.
• The Global Risks Report 2024 named misinformation and disinformation a top risk, which could destabilise society as the legitimacy of election results may be questioned.
• Therefore, it is crucial to scrutinise the possible drawbacks of swiftly formulated regulations to counter AI-driven disinformation during this crucial period.

What are the Major Challenges Arising from Hasty Regulatory Responses to AI?

Escalation of Disinformation: Unintended Ramifications of Resource Allocation

• The surge in disinformation, demonstrated by manipulated videos impacting political figures, presents a formidable obstacle.
  • For instance, consider the case of Tarique Rahman, a leader of the Bangladesh Nationalist Party, whose manipulated video suggested a reduction in support for Gaza's bombing victims—an action with potential electoral repercussions in a Muslim-majority country.
• Meta, the parent company of Facebook, exhibited delayed action in removing the fabricated video, raising concerns about the effectiveness of content moderation.
• Moreover, the reduction in content moderation staff due to widespread layoffs in 2023 exacerbates the challenge.
• The pressure to prioritize interventions in more influential markets may leave voters in less prominent regions, such as Bangladesh, vulnerable to disinformation, potentially leading to a global surge in disinformation due to the focus on catching misinformation from powerful governments.

Reinforcement of Industry Dominance: Amplifying Concentration and Ethical Concerns

• While well-intentioned, AI regulations risk bolstering industry concentration. Mandates such as watermarking (which are not foolproof) and red-teaming exercises (which are expensive) may inadvertently favour tech giants, as smaller companies encounter compliance obstacles.
• Such regulations could further entrench the power of already dominant players by erecting barriers to entry or rendering compliance unfeasible for startups.
• This concentration not only consolidates power but also raises apprehensions regarding ethical lapses, biases, and the centralization of consequential decisions within a select few entities.

Navigating Ethical Quagmires: Pitfalls of Sincere Guidelines

• The formulation of ethical frameworks and guidelines introduces its own complexities.
• The question of whose ethics and values should underpin these frameworks gains prominence in polarized times. Divergent perspectives on prioritizing regulation based on risk levels add layers of complexity, with some viewing AI risks as existential threats while others emphasize more immediate concerns.
• The absence of laws mandating audits of AI systems raises transparency issues, leaving voluntary mechanisms vulnerable to conflicts of interest.
• In the Indian context, members of the Prime Minister's Economic Advisory Council have even argued that the concept of risk management itself is precarious concerning AI, given its non-linear, evolving, and unpredictably complex nature.

Navigating the Complexity of AI Regulation: Strategies for Policymakers

• Acknowledge and Address Democracy's Inherent Challenges Alongside AI Threats:
  • Before delving into the intricacies of AI-related risks, policymakers must acknowledge the persistent challenges facing democracy globally.
  • Instances of unjust political imprisonments, threats to electoral processes, and disruptions to communication networks underscore the vulnerability of democratic systems.
  • Furthermore, the enduring issues of vote-buying and ballot-stuffing tarnish the integrity of elections.
  • These entrenched challenges within the democratic process provide context for evaluating the novelty of AI threats.
• Strike a Balance Between Addressing AI Risks and Implementing Sensible Regulation:
  • The rush among regulators to enact AI regulations ahead of the 2024 elections, following the AI fervour of 2023, underscores the need for caution.
  • While it is essential to confront the emerging threats posed by AI, hastily devised regulations may inadvertently worsen the situation.
  • Policymakers must carefully consider the potential for unintended consequences and the complexities inherent in regulating a swiftly evolving technological landscape.
  • It is crucial for regulators to appreciate the delicate balance required to manage AI risks without unintentionally creating new challenges or hindering democratic processes.
• Prepare for Future Challenges: Policymakers must adopt a forward-thinking approach to AI regulation, anticipating and formulating rules that not only address current risks but also proactively tackle future challenges.
  • Recognizing the rapid evolution of technology, regulatory frameworks must evolve accordingly.
  • By planning several steps ahead, regulators can contribute to the resilience of democratic processes, ensuring that voters in elections beyond 2024 benefit from an adaptive, proactive, and effective regulatory environment.

How Major Tech Companies Join Hands to Combat AI Misuse in Elections?

• On February 16th, 2024, a major step was taken in the fight against AI misuse in elections.
• 20 tech giants, including Microsoft, Google, Meta, and Adobe, signed a voluntary agreement called the "Tech Accord to Combat Deceptive Use of AI in 2024 Elections."
• This agreement marks a significant step towards collective action against the potential manipulation of democratic processes through deepfakes and other AI-generated content.

Key features of the Tech Accord:

• Collaborative detection and labelling: Companies pledge to develop tools and techniques for identifying and labelling deepfakes, fostering transparency and facilitating content removal.
• Transparency and user education: The accord emphasizes transparency in company policies regarding deepfakes and aims to educate users on identifying and avoiding them, raising public awareness about the technology's capabilities and limitations.
• Rapid response and information sharing: The signatories commit to sharing information and collaborating on takedown strategies for identified deepfakes, aiming for faster removal and a unified front against malicious actors.
• Additional measures: The agreement includes further commitments to invest in threat intelligence, empower candidates and officials with reporting tools, and collaborate on open standards and research.

However, critical analysis reveals potential limitations:

• Voluntary nature: The accord's voluntary character raises concerns about its enforceability and long-term effectiveness.
  • Companies may prioritize competing interests over their goals.
• Technical challenges: Deepfake detection remains an evolving field with limitations.
  • Continuous innovation by malicious actors can outpace detection capabilities.
• Potential for bias: Concerns exist about potential biases in detection algorithms, particularly regarding marginalized groups, further complicating the issue.
• Freedom of expression and censorship: Balancing the need for content moderation with upholding freedom of expression requires careful consideration and potential legal challenges.

Conclusion

Balancing immediate concerns with long-term implications, and addressing AI-related electoral risks requires careful regulatory foresight. While the Tech Accord offers promise in combatting AI-driven election interference, its effectiveness depends on rigorous implementation and continuous adaptation to evolving threats. Ongoing research and dialogue are crucial to address ethical concerns and ensure a balanced approach to safeguarding democracy and individual rights.

Why is it in the News?

Farmers have resumed protests without a specific trigger, unlike their previous march against contentious farm laws. Their main demand is a legal guarantee for Minimum Support Prices (MSP).

Context:

• The renewed protest by farmers, advocating for a legal assurance of Minimum Support Prices (MSP), underscores the enduring battle for agricultural sector stability.
• Amidst this, it's crucial to delve into the intricacies of MSP, address prevailing misconceptions, and explore the advantages of formalising this system.

What is the Minimum Support Price (MSP)?

• MSP (Minimum Support Price) is the cost at which the government buys crops from the farmers, to guarantee farmers against any sharp fall in agricultural income.
• It is declared by the Government based on the proposal of the Commission for Agricultural Cost and Prices (CACP), at the start of the planting season.
• This mechanism aims to protect small and marginal farmers from financial losses and ensure an adequate supply of food grains for public distribution across India.
• Since its inception in 1966-67 for wheat, the MSP framework has expanded to cover various essential food crops, facilitating their availability to the public through subsidized rates under the public distribution system.
  • However, only a small percentage, approximately 6% or less, of farmers are able to sell their produce at prices higher than the MSP.

Is the MSP Different in different states?

• Because of the variety in irrigation and wages, the expense of a similar yield changes from one state to another.
• However, there is no draft of the local Minimum Support Price, so there is one MSP for the whole country.

Significance of Minimum Support Price: 

• Fixed Remunerations: The farmers are financially insured against the impulses of price fall in the market.
  • It gives security to farmers from crop loss and price uncertainty.
• Help in Decision Making: MSPs are reported toward the start of the planting season, this assists farmers with settling on the best choices of crop that they should plant.
  • This development data assists the farmer with settling on the best choice with regards to which yield to plant for the most extreme monetary advantage inside the restrictions of his agricultural land size, environment, and irrigation framework.
• Crop Diversification: The MSP declared by the Government of India without precedent for 1966-67 for wheat has reached out to around 24 crops at the present.
  • This has urged the farmers to develop these different crops to maximize their agricultural income.
• Price Limitations for Private Purchasers: MSP conveys a value message to advertise that if vendors don’t offer higher than MSP costs the farmer may not sell them his produce.
  • In this manner, it goes about as an anchor or benchmark for agricultural produce.
  • It guarantees the market costs won’t be radically lower than the Minimum Support Price.
• Commercial Crops: MSP is utilized as an instrument to boost the creation of explicit food crops which is short in supply.
  • MSP spurs farmers to develop commercial crops and expand creation on a commercial basis.
• Purchasing Power Enhancement: MSP provides fixed amounts in framers’ hands which makes them financially stable.
  • It helps in upgrading the buying limit and updating the style of living of farmers and their families.

Challenges in Implementation of MSP:

• Selective Intervention and Limited Coverage: Despite the annual announcement of MSP for 23 crops, actual implementation tends to be selective, primarily focusing on major crops like rice and wheat.
  • This limited coverage undermines the broader objective of ensuring stability across various agricultural commodities.
• MSP Implementation Bias: The unequal application of MSP, favouring specific crops, marginalizes farmers cultivating other essential commodities.
  • This bias exacerbates regional disparities and impacts the economic well-being of farmers engaged in non-major crop cultivation.
• Disconnect Between Market Price and MSP: The disparity between market prices and MSP poses a significant challenge, as government intervention is triggered primarily when market prices fall below the MSP.
  • Inconsistent intervention exacerbates uncertainties for farmers, leading to financial distress during market downturns.
• Perceived Government Apathy: Farmers perceive a lack of genuine interest or urgency from the government in effectively implementing MSP.
  • This perceived apathy breeds distrust and frustration among farmers, fueling demands for a legal guarantee to ensure consistent and widespread implementation.
• Political Hesitation and Decision-Making Delays: While there is political consensus supporting a legal guarantee for MSP, successive governments have hesitated to formalize this mechanism.
  • Delayed decision-making perpetuates uncertainties in the agricultural sector, undermining the effectiveness of MSP as a stabilizing force.

What Does a Legal Guarantee of MSP Mean and What Obstacles in Legalising MSP?

• It means that anyone paying less than the price set by the government for crops could be criminally charged.
  • Currently, there is an MSP for 23 crops.
  • However, the highest procurement by the government is of wheat and rice.

• According to experts, if MSP is legally guaranteed, the government will have to pay it regardless of supply and demand dynamics.
  • At the moment, about 60 per cent of the total field crop production in India comes from wheat and paddy.
• Fiscal Concerns: Misconceptions regarding the fiscal implications of guaranteeing MSP have posed obstacles to its legalization.
  • Despite the political consensus, concerns over perceived excessive fiscal burdens have deterred governments from formalizing MSP.
• Prevalent Misconceptions: There is a prevalent misconception that legalizing MSP necessitates government procurement of all agricultural produce, which is inaccurate.
  • Government intervention is required only when market prices dip below MSP, and it does not entail the procurement of the entire marketable surplus.
• Misunderstanding of Procurement Costs and Subsidies: The cost of procuring rice and wheat is often misconstrued as the cost of the MSP program, whereas it primarily serves as a subsidy to consumers rather than farmers.
  • For other crops, government procurement is not a cost unless sold with a subsidy, with the actual cost being the difference between economic cost and issue price.

Potential Advantages of Legalising MSP:

• Ensuring Uniform Implementation: Formalizing Minimum Support Prices (MSP) establishes a clear legal framework, ensuring consistent application across all crops.
  • This move addresses current issues of selective intervention, providing farmers with a dependable safety net.
• Promoting Inclusive Agricultural Growth: Expanding MSP coverage to various crops ensures that price stability benefits all segments of the farming community.
  • Small and marginal farmers cultivating diverse crops can access MSP protection, fostering inclusive agricultural development.
• Reducing Farmer Vulnerability: Formalizing MSP reduces farmers' susceptibility to market fluctuations by guaranteeing a minimum income for their produce.
  • This assurance enables farmers to navigate uncertainties with confidence, knowing that government intervention is assured during price downturns.
• Boosting the Rural Economy: A secured MSP contributes to farmers' economic well-being, leading to increased rural income.
  • This upliftment stimulates the rural economy by generating demand for goods and services, fostering growth across multiple sectors.
• Clarifying Consumer Subsidies: Formalization helps distinguish between procurement costs and consumer subsidies, often conflated as MSP program expenses.
  • This clarity aids policy discussions and ensures targeted subsidy allocation, benefiting both farmers and consumers.
• Facilitating Strategic Government Operations: A legal framework empowers the government to conduct strategic operations in domestic and international markets.
  • Through controlled sales during periods of high market prices, the government can manage inflation, ensuring price stability for consumers.

Conclusion

The legalization of MSP presents a holistic remedy to the agricultural sector's woes.

Beyond ensuring uniform application, it fosters diversification, inclusivity, and economic robustness, ultimately benefiting farmers and bolstering rural prosperity. By dispelling misconceptions and tackling apprehensions, policymakers can pave the way toward a more secure and prosperous future for our farmers.

Why is it in the News?

The government might find it challenging to meet the protesting farmers' demand for a legal guarantee of (MSP) due to India's farm subsidies being scrutinised at the (WTO), especially with criticism from a group of 19 influential agricultural exporting countries.

Background:

• After independence, our country struggled to produce enough food for its large population as the agriculture sector was in a poor state.
• To address this challenge, we either had to import grains, which incurred significant costs, or rely on aid from other nations.
• In 1960, the government took steps toward self-sufficiency. They introduced high-yielding seeds, promoted the use of fertilisers, and improved agricultural machinery.
• At the same time, the government supported rice and wheat cultivation by offering farmers a Minimum Support Price (MSP).
  • This ensures that farmers receive a fair price; if they can't sell their crops for a better price in the market, the government will buy them at a favourable rate.
• However, there's currently tension between India and the WTO regarding these subsidies.

Green Revolution

• The Green Revolution, initiated in the 1960s, aimed to enhance agricultural productivity and bolster the nation's economy.
• India embraced technological and industrial advancements in agriculture during this era.
• This included the adoption of high-yield seeds, modern farming equipment, irrigation systems, pesticides, and fertilisers to transform the agricultural landscape.
• The green revolution helped India move from a state of importing grains to a state of self-sufficiency.

Causes of Tensions Between India and the WTO:

• India's actions in this realm have stirred discontent among other nations, who perceive India's practices as unfair trade manoeuvres.
  • The government's practice of procuring crops from farmers at low prices and subsequently exporting them at reduced rates to global markets has drawn criticism.
• Developed countries have lodged complaints, alleging multiple instances of India breaching WTO regulations by providing subsidies amounting to 60-70% of the total crop value.
• While the WTO permits governments to offer subsidies to farmers, it imposes restrictions, allowing developed countries to provide up to 5% and developing countries up to 10% of the total value in subsidies.

What are the WTO Regulations on Farm Subsidies?

• The WTO regulations on farm subsidies aim to promote fair competition and prevent global trade distortion.
• These regulations establish limits on the types and levels of subsidies that member countries can offer to their agricultural sectors.
• Levels of Subsidies:

Green Box:

• These subsidies have minimal impact on trade distortion.
• They are not specific to particular products and are generally permissible under WTO rules.
• Examples include funding for research, environmental conservation, and direct income support for farmers facing challenges such as crop loss or natural disasters.

Amber Box:

• These subsidies promote excessive production and distort international trade.
• Examples include input subsidies like those for seeds, fertilisers, and Minimum Support Price (MSP).
• WTO restricts these subsidies, capping them at 5% for developed countries and 10% for developing countries.

Blue Box:

• These subsidies, akin to Amber Box subsidies, aim to limit production.
• Currently, only a few countries, such as Norway and Iceland, utilise these subsidies.
• The WTO does not impose any limits on these subsidies.

Why India's Agricultural Subsidy Programs Encounter Challenges in the WTO?

• India's agricultural subsidies face hurdles at the WTO due to the organisation's rules, which do not consider subsidies on a per-farmer basis, disadvantageous to developing countries like India.
  • For instance, although India's per-farmer subsidy is significantly lower compared to countries like the US, the WTO regulations focus on total subsidy amounts.
• In 2019-20, India's subsidies exceeded the 10% limit relative to its total rice production, despite the per-farmer subsidy being relatively modest at $300 compared to the US's $40,000 per farmer.
• While India is safeguarded by the 'Peace Clause' established during the WTO's Bali ministerial in 2013, certain ambiguities in the clause leave India vulnerable to disputes.
• Consequently, new schemes must adhere to the 10% subsidy ceiling, foregoing protection under the 'Peace Clause'.

Criticism of India’s Agricultural Subsidies by Influential Agricultural Exporting Countries:

• The Cairns Group, which includes countries like Australia, Brazil, and Canada, has raised concerns about the level of subsidisation in India’s public stockholding (PSH) program.
• They argue that India's agricultural support measures are significantly subsidised, leading to distortions in global food prices and negatively impacting food security in other nations.
• Last year, the group circulated a comprehensive proposal aimed at reducing trade-distorting agricultural support among WTO members, advocating for a halving of the total global entitlement/subsidies.
• This proposal sparked tensions among developing nations, with India among those affected.
• Essentially, the Cairns Group is advocating for India to either dismantle or scale back its Minimum Support Price (MSP) scheme, prompting India to seek stronger legal protection for its MSP program.

Upcoming Challenges for the Government of India:

• In pursuit of greater flexibility in providing agricultural support, India is actively advocating for a permanent solution at the forthcoming inter-ministerial summit in Abu Dhabi.
• However, the entrenched impasse on politically sensitive issues between developed and developing nations makes resolution unlikely.
• Farmers' groups in India advocate for removing agriculture from the purview of the WTO, but this approach could present challenges and hinder India and other developing nations from regulating subsidies provided by developed countries.
• The government faces a dilemma, as it grapples with peer pressure at the WTO while simultaneously facing demands for Minimum Support Price (MSP) from farmers.
• The call for better MSP support isn't limited to Punjab farmers; farmers across the nation are seeking similar assurances.
• Furthermore, if farmers in Punjab and Haryana shift away from agriculture, it could pose a threat to the country's food security.

Way Forward

• While India currently avoids disputes on the subsidy matter at the WTO due to the non-functionality of the Dispute Settlement Body (DSB), member countries will continue to scrutinise India's adherence to subsidy limits.
• As a result, India must advocate not only for adjustments to the formula used to calculate the food subsidy cap within the WTO but also for the inclusion of programs implemented after 2013 under the protection of the 'Peace Clause'.

Why is it in the News?

While presenting the interim Union budget, Finance Minister Nirmala Sitharaman stated that India will be negotiating Bilateral Investment Treaties (BITs) with its trade partners to boost the inflow of foreign direct investment.

Background:

• India's economic terrain is undergoing a significant shift following the Finance Minister's announcement of plans to negotiate Bilateral Investment Treaties (BITs) during the interim Union budget presentation.
• This decision arrives at a critical juncture, coinciding with India's struggle to address declining levels of foreign direct investment (FDI) and the aftermath of adopting the 2016 Model BIT.
• Given these circumstances, it becomes imperative to explore the evolution of India's BITs, assess the implications of the 2016 model, and analyze the recent policy shift to gauge its potential impact on FDI.

Evolution of Bilateral Investment Treaties (BITs) in India:

• Origins of BITs in India (1990s): During the mid-1990s, India embarked on a significant economic policy shift by initiating Bilateral Investment Treaties (BITs) to attract foreign direct investment (FDI) and create an enabling environment for economic growth.
  • The primary aim was to demonstrate India's commitment to protecting investments made by individuals and companies from partner countries.
  • The signing of the first BIT between India and the UK in 1994 laid the groundwork for a series of agreements that would play a pivotal role in India's global economic integration.
• Expansion of BITs as Economic Diplomacy (Late 90s to 2000s): BITs in India evolved into strategic tools to mutually encourage and safeguard investments in each other's territories.
  • As India sought to position itself as a premier investment destination, these treaties became instrumental in signaling its dedication to safeguarding the rights and interests of foreign investors.
  • This period witnessed a proliferation of BITs, reflecting India's acknowledgement of the importance of foreign capital in stimulating domestic industries and infrastructure development.
• Emerging Challenges and Disputes (2010s): The significance of BITs became evident in 2010 with the settlement of the first-ever investor treaty claim in India.
  • Subsequent events, including the unfavorable award in the Australia-India BIT dispute (White Industries v Republic of India) in 2011, underscored the complexities and challenges associated with managing disputes arising from these agreements.
  • By 2015, India found itself embroiled in 17 known BIT claims, with the Cairn Energy Plc case being particularly notable.
  • These challenges prompted a critical reassessment of India's approach, leading to the adoption of the 2016 model BIT.
• Adoption of the 2016 Model BIT and Policy Shift: The adoption of the 2016 model BIT signalled a significant shift in India's approach to BITs.
  • It was viewed as a protective measure, resulting in the termination of numerous existing treaties.
  • However, the 2016 model BIT faced criticism for its exclusion of key international law principles, such as 'fair and equitable treatment' and 'most favoured nation.'
• Additionally, it introduced a requirement for investors to exhaust local remedies before resorting to international arbitration, potentially delaying the dispute resolution process.

Issues with the 2016 Model of BIT and their Consequences:

• Protective Nature: The introduction of the 2016 Model BIT marked a significant shift in India's approach to bilateral investment treaties, aiming for greater protection.
  • Positioned as a response to past disputes, it led to the termination of numerous existing treaties, signalling a desire to recalibrate engagement terms with foreign investors.
  • However, concerns arose about its potential impact on India's attractiveness as an investment destination.
• Absence of Key International Law Doctrines: Criticism was directed at the 2016 model BIT for deviating from established international law doctrines.
  • Notably, it lacked principles like "fair and equitable treatment" and "most favoured nation," raising doubts about fairness and protection for foreign investors.
  • This omission complicated the interpretation and enforcement of investment agreements, adding uncertainty for investors.
• Requirement for Exhausting Local Remedies: The 2016 model BIT introduced a requirement for investors to exhaust local remedies before pursuing international arbitration.
  • While this aimed to promote domestic dispute resolution, it created delays and challenges.
  • Investors found navigating local legal systems time-consuming and ineffective, potentially discouraging investment.
• Adverse Impact on FDI and Renegotiation Challenges: The consequences of the 2016 model BIT were evident in declining FDI in India.
  • FDI equity inflows dropped by 24% to $20.48 billion in April-September 2023, reflecting investor concerns.
  • The termination of existing treaties and challenges with the new model hindered India's ability to renegotiate terms, affecting its attractiveness to foreign investors.
  • The Cairn Energy Plc case, resulting in a significant award against India, highlighted the difficulties under the 2016 model BIT.

Government Recommendations and Policy Reforms Following Challenges with the 2016 BIT Model:

• Acknowledgement of Limitations and Policy Adjustment: Recognizing the constraints and hurdles posed by the 2016 Model BIT, the Indian government has signalled a shift towards more adaptable and practical strategies.
  • The announcement during the presentation of the interim Union budget, highlighting the negotiation of Bilateral Investment Treaties with trading partners, signifies a departure from rigid approaches.
  • This acknowledgement underscores the necessity for a nuanced approach that considers evolving international investment dynamics and global economic shifts.
• Parliamentary Standing Committee Proposals: In 2021, the Parliamentary Standing Committee on External Affairs proposed several key recommendations to reevaluate the existing BIT framework.
  • These recommendations aimed to tackle challenges associated with the 2016 model BIT and foster a more investor-friendly environment.
  • One notable recommendation emphasized the importance of timely dispute resolution through pre-arbitration consultations and negotiations.
  • This proactive stance aims to streamline the dispute-resolution process and alleviate pressure on both foreign investors and the Indian legal system.
• Addressing India's Contract Enforcement Ranking: India's low ranking in contract enforcement, currently at 163 out of 190, remains a significant concern.
  • Recognizing the link between an efficient legal framework and foreign investment attractiveness, recommendations from the Parliamentary Standing Committee serve as a call to action.
  • A timely review of treaties and alignment with global best practices becomes crucial to improving the ease of doing business, reinforcing India's commitment to fostering an investment-friendly climate.
• Free Trade Agreement (FTA) with the UK: As part of ongoing policy reforms, India is working towards finalizing a free trade agreement (FTA) with the UK.
  • This strategic endeavour has undergone over 14 rounds of negotiations, with disputes being a major obstacle.
  • The proposed FTA is expected to eliminate the requirement for exhausting local remedies, offering a mechanism for swift dispute resolution through international arbitration.
• This pragmatic approach acknowledges the importance of rapid dispute resolution in nurturing international trade relationships.

Conclusion

Achieving a $5 trillion economy hinges on robust international trade and secure investments in India. A forward-looking strategy for BITs is essential to attract and maintain long-term foreign investments, and the government's recent initiative is a positive move. Nevertheless, adopting a more tailored approach, rather than a one-size-fits-all model, is necessary to facilitate rapid yet sustainable growth in cross-border flows.

Why is it in the News?

Recently, Prime Minister Modi announced that the agriculture scientist M S Swaminathan will be honoured with the Bharat Ratna.

Who was MS Swaminathan?

• Monkomb Sambasivan Swaminathan (MS Swaminathan) was born on August 7, 1925, in Kumbakonam, Madras Presidency (now Tamil Nadu).
• He was an agronomist, agricultural scientist, plant geneticist, administrator, and humanitarian.
• He was known as the ‘father of the Green Revolution’ in India.
• Swaminathan began his career in 1949 researching the genetics of potatoes, wheat, rice, and jute.
  • He played a crucial role in developing high-yielding varieties of paddy that helped ensure India’s low-income farmers produced more yield.
• Also known as the ‘father of economic ecology’ by the United Nations Environment Programme, he worked with agriculture ministers including C Subramaniam and Jagjivan Ram during the 1960s and 70s for the success of the ‘Green Revolution’ in India.
  • An initiative that paved the way for an exponential rise in the productivity of wheat and rice through the adaptation of chemical-biological technology.
• Career: Swaminathan also held administration positions in various agricultural research laboratories.
  • He served as the director general of the Indian Council of Agricultural Research and International Rice Research Institute.
  • He also worked as the principal secretary of the Ministry of Agriculture in 1979.
  • Later, he also served as the President of the International Union of the Conservation of Nature and Natural Resources.
  • In 2004, Swaminathan was appointed as chairman of the National Commission on Farmers.
• Awards and Recognition: He was awarded with the Ramon Magsaysay Award in 1971 and the Albert Einstein World Science Award in 1986.
  • He was awarded the first World Food Prize in 1987, following which he set up the MS Swaminathan Research Foundation in Chennai.
  • Swaminathan has also been conferred with the Padma Shri, Padma Bhushan, and Padma Vibhushan - the three most prestigious awards.
  • Apart from these, he was also given the H K Firodia Award, the Lal Bahadur Shastri National Award, and the Indira Gandhi Prize.
• Swaminathan also contributed to various agricultural and environmental initiatives globally.
  • He was named one of the 20 most influential Asians of the 20th century by Time magazine.
• He also served as a Member of Parliament in the Rajya Sabha from 2007 to 2013.
• MS Swaminathan passed away in September 2023 at the age of 98.
• His decision to focus on ensuring India's food security led him to become a key figure in the Green Revolution of the 1960s, which transformed India from a food-deficient nation to one of the world's leading agricultural producers.
  • His collaboration with Nobel laureate Norman Borlaug introduced high-yielding varieties of wheat and rice, saving millions from starvation.
• Dr Swaminathan's transformative influence on Indian agriculture began to emerge when he championed the introduction of high-yielding crop varieties.
  • His visionary approach was instrumental in pioneering the Green Revolution in India when the country was still grappling with poverty and a lack of social security.
• The impact of Dr. Swaminathan's efforts was nothing short of revolutionary.
• India's food production skyrocketed, and the nation moved from a state of food scarcity to food self-sufficiency.
• His work not only averted potential famines but also elevated the economic conditions of countless farming communities.

How MS Swaminathan Contributed to the Green Revolution?

• MS Swaminathan was greatly influenced by Mahatma Gandhi's teachings of selfless service to the poor and the nation.
• He was very much influenced by the 1943 Bengal famine, which killed up to three million people and realised the need to improve agriculture and food security in India.
• After Swaminathan’s work on rice, he and other scientists worked on doing the same to enhance productivity for the wheat crop.
• India had to get Norin dwarfing genes from Norman Borlaug in Mexico to enhance the productivity and adaptability of its wheat crops.
  • These genes, known for their ability to produce shorter wheat plants, were instrumental in the Green Revolution, as they helped increase yield potential and improve resistance to lodging (falling over) in wheat plants.
  • By acquiring these genes, India aimed to replicate the success of the Green Revolution and address food security challenges by boosting wheat production.
• Norman Borlaug was an American scientist who was working on developing more productive crop varieties.
  • It led to him winning the Nobel Peace Prize in 1970 for his work in developing High Yielding Varieties (HYVs) of wheat.
• Many researchers and scientists were involved in this work but there isn’t any doubt that the basic strategic vision underpinning the Green Revolution in India, introducing a new genetic strain or ‘plant type’ responsive to increased fertiliser and water application came from MS Swaminathan.
• The problem with the traditional wheat and rice varieties was that they were tall and slender.
  • These ‘lodged’ – fell flat on the ground — when they grew and their heads were heavy with well-filled grains produced in response to high fertiliser doses.
  • Through Swaminathan’s research on rice, a reduction in plant height was sought to make them less lodging-prone but this was not easy to do.
• His strategy of developing semi-dwarf wheat varieties using mutagenesis exposing plants to chemicals or radiation to introduce desirable modifications in their DNA did not, however, work.
  • The lowering of plant heights led to a simultaneous reduction in the size of the grain-bearing panicles or earheads.
• The search for an ideal variety led him to contact American scientist Orville Vogel.
  • He played a role in developing a ‘dwarf wheat’ called Gaines, which had a high yield.
  • It contained dwarfing genes from a dwarf wheat called the Norin-10.
• Vogel agreed but was unsure of the wheat’s potential in the Indian climate and thus advised Swaminathan to approach Norman Borlaug, who had incorporated the same dwarfing genes through Vogel’s lines into his spring wheat varieties in Mexico that were better suited for India.
  • Borlaug also later visited India, after Swaminathan proposed so to the Indian Agricultural Research Institute, allowing for the wheat breeding programme to commence.
• In 1963, they began a serious effort to breed dwarf wheat and within five years, this initiative led to what became known as the "Wheat Revolution."
  • Indira Gandhi, the then Prime Minister of India, released a special stamp to mark the achievement.

The Side Effects of the Green Revolution:

• Despite its landmark role in achieving food sufficient in India, the Green Revolution has been criticised on multiple counts, such as:
  • Benefiting the already prosperous farmers as it was introduced in states with higher productivity.
• Swaminathan recognised such issues as early as January 1968, addressing the Indian Science Congress at Varanasi.
• He highlighted concerns about the rapid spread of a few high-yielding crop varieties replacing diverse local ones, leading to potential problems like soil degradation, desertification, excessive pesticide use, and unsustainable groundwater extraction.
  • Unfortunately, many of these concerns have materialised today.
• He also lent his support to farmers as the head of the National Commission on Farmers from 2004-06, he recommended that the Minimum Support Price at which farmers sell their crops to the government should be at least 50 per cent more than the weighted average cost of production.
• For his contributions, Swaminathan was awarded the first World Food Prize Laureate in 1987, for “developing and spearheading the introduction of high-yielding wheat and rice varieties into India during the 1960s when that country faced the prospect of widespread famine.
• Wheat production doubled in just a few years, making the country self-sufficient and saving millions from extreme food deprivation.

Why is it in the News?

In her Interim Budget speech, Finance Minister Nirmala Sitharaman announced a Rs 1 lakh crore fund to provide long-term, low-cost or zero-interest loans for research and development.

Context:

• Finance Minister, Nirmala Sitharaman in her Interim Budget speech, announced a Rs 1 lakh crore fund to provide long-term, low-cost, or zero-interest loans for research and development.
• A new scheme to strengthen deep-tech capabilities in the defence sector that is likely to be followed up later was also announced.
• The separate announcements on the fund and defence deep tech are intricately linked and must be seen together with the government’s other plans for the R&D sector.

What is Deep Tech?

• Deep tech refers to advanced and disruptive technologies, many of which are still under development, that have the potential to trigger transformative change and provide solutions for the future.
• The term is used to describe cutting-edge research in nanotechnology, biotechnology, material sciences, quantum technologies, semiconductors, artificial intelligence, data sciences, robotics, 3D printing, etc.

What are the Advantages of Deep Tech?

• These technologies are expected to play a key role in addressing complex global challenges like climate change, hunger, epidemics, energy access, mobility, physical and digital infrastructure, and cyber security including:
• Economic Implications: Advanced capabilities in deep tech are also likely to enhance productivity drive economic growth create jobs in coming years, and offer a competitive advantage to countries with strong foundations in these areas.
• Opportunities for India: With its large base of relatively high-quality science and engineering manpower and a fairly well-established technology culture, India feels it is well-placed to be one of the frontrunners in these areas.
• Potential Benefits: There is scope to contribute to the development of these technologies, which can ensure early adoption, shares in intellectual property, indigenous know-how, and self-reliance.
  • Major associated benefits in terms of spin-off technologies, trained manpower, entrepreneurship and technology exports can accrue as well.

Initiatives by the GOI to Build a Deep Tech Ecosystem

• Over the past few years, the government has tried to incentivise research in some of these areas by setting up a National Mission on Transformative Mobility and Battery Storage and, more recently, a National Quantum Mission.

National Mission on Transformative Mobility and Battery Storage:

• This mission is aimed at fostering innovation in the mobility and energy storage sectors.
  • The government encourages research and development in electric vehicles, advanced battery technologies, and sustainable mobility solutions through focused platforms and financial incentives.
  • It targets challenges related to environmental sustainability and energy efficiency.

National Quantum Mission:

• Recognizing the transformative potential of quantum technologies, the government has initiated the National Quantum Mission.
  • This effort concentrates on promoting research and development in quantum computing, communication, and sensing.
  • Quantum technologies hold promise for revolutionizing various industries, and the mission aims to position India as a leader in global quantum advancements.

National Deep Tech Startup Policy (NDTSP):

• In addition to mission-oriented strategies, the government has devised a policy framework to create a conducive environment for deep tech companies.
  • The NDTSP addresses specific challenges faced by technology startups and aims to nurture a thriving ecosystem for their growth.
  • Currently awaiting government approval, it embodies a comprehensive approach to cultivating a vibrant deep-tech startup ecosystem in India.
• Objectives and Key Components of NDTSP: The NDTSP is designed to achieve several objectives, including:
  • Competitiveness: Fostering innovation to enable startups to compete globally.
  • Collaboration: Facilitating partnerships between startups and international counterparts.
  • Incentives: Providing appropriate incentives for companies investing in innovation and research.

The policy outlines key components to achieve its goals, such as: