Current Affairs 28 October 2024

CONTENTS

1. Microfinance Institutions
2. India – Germany Relations
3. Israel Conducts Targeted Airstrikes on Iran
4. 21st Livestock Census
5. National Mission for Manuscript
6. Cybersquatting
7. Centre Aims to Complete Bhu-Aadhaar Registration for Rural Land Parcels by 2026

Microfinance Institutions

Context:

Recently, the Financial Services Secretary, while highlighting the crucial role of microfinance institutions (MFIs) in fostering financial inclusion, emphasised that they must avoid reckless lending despite their role in promoting financial inclusion. 

Relevance:

GS-III: Indian Economy (Growth and Development of Indian Economy, Banking Sector)

Dimensions of the Article:

1. What are Micro Finance Institutions (MFIs)?
2. Microfinance in India
3. Micro Finance Associated Challenges

What are Micro Finance Institutions (MFIs)?

• Micro finance Institutions, also known as MFIs, a microfinance institution is an organisation that offers financial services to low-income populations.
• Usually, their area of operations of extending small loans are rural areas and among low-income people in urban areas.
• MFIs provide the much-needed aid to the economically underprivileged who would have otherwise been at the mercy of the local moneylender and high interest rates.
• The model had its genesis as a poverty alleviation tool, focused on economic and social upliftment of the marginalised sections through lending of small amounts of money without any collateral to women for income-generating activities.
• Some of the MFIs, that qualify certain criteria and are non-deposit taking entities, come under RBI wings for Non-Banking Financial Company (NBFC) Regulation and supervision. These “Last Mile Financiers” are known as NBFC MFI.
• The objective of covering them under RBI was to make these NBFC MFIs healthy and accountable.

History of Microfinance

• The term “microfinancing” was first used in the 1970s during the development of Grameen Bank of Bangladesh, which was founded by the microfinance pioneer, Muhammad Yunus.
• Since, in the developing countries, a large number of people still depends largely on subsistence farming or basic food trade for their livelihood, therefore, smallholder agriculture in these developing countries has been supported by the significant resources.

Microfinance in India

• SEWA Cooperative Bank was initiated in 1974 in Ahmedabad, Gujarat, by Ela Bhatt which is now one of the first modern-day microfinance institutions of the country.
• The National Bank for Agriculture and Rural Development (NABARD) offered financial services to the unbanked people, especially women and later decided to experiment with a very different model, which is now popularly known as Self-help Groups (SHGs).
• The SHG-Bank linkage programme in India has savings accounts with 7.9 million SHGs and involves the participation of regional rural banks (RRBs), commercial banks and cooperative banks in its operations. The origin of SHGs in India can be traced back to the establishment of the Self-Employed Women’s Association (SEWA) in 1972.
• In 2013, a loan of $144 million was provided by Grameen Capital India to the microfinance groups. Apart from the Grameen Bank, another microfinance organization named Equitas was developed in Tamil Nadu. The Southern and Western states of India are the ones attracting the greatest number of microfinance loans.

Micro Finance Associated Challenges

• Inadequate Data: While overall loan accounts have been increasing the actual impact of these loans on the poverty-level of clients is sketchy as data on the relative poverty-level improvement of MFI clients is fragmented.
• Impact of COVID-19: It has impacted the MFI sector, with collections having taken an initial hit and disbursals yet to observe any meaningful thrust.
• Social Objective Overlooked: In their quest for growth and profitability, the social objective of MFIs—to bring in improvement in the lives of the marginalized sections of the society—seems to have been gradually eroding.
• Loans for Conspicuous Consumption: The proportion of loans utilized for non-income generating purposes could be much higher than what is stipulated by RBI. These loans are short-tenured and given the economic profile of the customers, it is likely that they soon find themselves in the vicious debt trap of having to take another loan to pay off the first.

-Source: The Hindu

India – Germany Relations

Context:

On his three-day visit to India, German Chancellor Olaf Scholz met the Indian PM, focusing on strategic partnerships, visas for skilled workers, and mutual cooperation. Modi and Scholz also co-chaired the seventh round of India-Germany Intergovernmental Consultations.

Relevance:

GS II: International Relations

Dimensions of the Article:

1. Key Highlights of the German Chancellor’s Visit to India
2. India-Germany Relationship
3. Conclusion

Key Highlights of the German Chancellor’s Visit to India

Bilateral Discussions on Global Concerns

• Russia-Ukraine Conflict:
  • Prime Minister Modi highlighted India’s advocacy for peaceful resolution and commitment to global peace.
  • Chancellor Scholz commended India’s role in South Asia and called for India’s support in finding a political resolution to the Ukraine crisis.
• West Asia Issues:
  • Both leaders agreed on the need to prevent further escalations and supported a ceasefire and a two-state solution to the Israeli-Palestinian conflict.
• Indo-Pacific Security and China’s Influence:
  • Emphasis was placed on maintaining a rules-based order in the Indo-Pacific, ensuring maritime freedom.
  • The commitment was made to strengthen defense ties and address regional security challenges together.
• Reforms in Global Governance:
  • Modi and Scholz discussed the necessity of reforming institutions like the UN Security Council to better tackle current global issues.
  • They promoted moving from a “whole of government” to a “whole of nation” approach, deepening their collaborative efforts.

Significant Announcements and Agreements

• Visa Policy Enhancement:
  • Germany announced an increase in the annual visa quota for skilled Indians from 20,000 to 90,000, recognizing the vital role of India’s skilled professionals in German economic development.
• Strategic Partnerships:
  • Introduction of the ‘Focus on India’ strategy document, reinforcing Germany’s commitment to India’s workforce and strategic collaboration.
  • Chancellor Scholz emphasized the importance of avoiding one-sided dependencies, especially in obtaining critical raw materials, aiming to diversify supply chains with India as a key partner.
• Trade and Investment Encouragements:
  • Prime Minister Modi encouraged German businesses to invest in India, positioning it as a promising hub for trade and manufacturing under the “Make in India, Make for the World” initiative.

Collaborative Ventures and Treaties

• Defense and Security Cooperation:
  • The signing of an agreement on the exchange and protection of classified information marked a significant step in deepening mutual trust in defense and security.
• Legal and Security Treaty:
  • The Mutual Legal Assistance Treaty (MLAT) in criminal matters is set to enhance cooperation on legal issues and improve the joint capability to tackle security challenges.
• Renewable Energy and Technology:
  • The Green Hydrogen Roadmap reflects a major commitment to renewable energy collaboration aimed at achieving climate objectives.
  • A Joint Declaration of Intent on R&D in advanced materials highlights the shared focus on technological innovation and development.

India-Germany Relationship

Strategic Cooperation and Collaboration

Developed Alliance:

• India and Germany have a ‘Strategic Alliance’ since the year 2000. The two countries have nurtured and collaborated on numerous lines of development and technological initiatives.

Growing Synergy:

• Over the recent years, the bilateral relationship of both nations has been undergoing change with increased cooperation mainly in the state-of-the-art fields like AI, cyber security, circular economy and smart farming, sustainable growth.

Trade Relationship:

• Germany still remains the biggest trading partner of India in the European Union, and bilateral trade has reached $26 billion for fiscal 2022-23.
• The nature of the trade is also robust, with exports from India to Germany having reached $10.1 billion and imports from Germany $14.9 billion.

Free Trade Negotiations:

• Although there is no direct Free Trade Agreement (FTA) between Germany and India, Germany prefers the negotiations already under way for an EU-India FTA, that will further strengthen economic links.

Inter-governmental Consultations (IGC)

High-Level Dialogues

• Since 2011, the IGC allows a comprehensive review of cooperation and explores new dimensions of engagement between the two countries.
• India is in the list of few nations with which Germany holds the high-level dialogues. Geopolitical Alignments

Indo-Pacific Focus:

• Recent geopolitical strains in the Indo-Pacific region have made India an important partner for furthering economic and strategic stability in the region for Germany and other wider European entities .

Conclusion:

Recent Developments:

• The Modi-Scholz meeting marked a new chapter for India-Germany relations, based on a series of agreements from trade to defense and even environmental cooperation.

Mutual Growth and Global Influence:

• These interactions served as a solid foundation for both growth together and serious impact in the world at large, establishing that the two nations were crucially important to the international arena.

-Source: Indian Express

Israel Conducts Targeted Airstrikes on Iran

Context:

Israel was said on October 26 to launch precise and targeted airstrikes that reportedly hit key targets at Iran in the aftermath of an earlier attack by that country on Israel during the month. The reported steps marked a clear escalation between the two countries.

Relevance:

GS II: International Relations

Dimensions of the Article:

1. Why did Israel attack Iran?
2. Hostility Between Israel and Iran: Historical and Current Dynamics
3. Implications of the Israel-Iran Conflict for India

Why did Israel attack Iran?

The hostilities between the two countries are as a result of a long-standing history of mutual animosity and the geopolitical tensions that come along with it. The events that triggered this latest episode of violence are several massive incidents:

• Iranian and Israeli long-term cold war relationship turned sour even further after the Hamas’ attacks on 7 October.
• Support of Hostile Groups: One aspect quite prominent in this conflict is Iran’s support to the Hamas and Hezbollah groups, which have been involved in direct clashes with Israel. Both Hamas and Hezbollah are classified as terrorist groups by the countries of Israel, United States, and many others.
• Strikes and Retaliation:
  • April 1 Raid: Israel attacked an Iranian embassy in Syria using missiles, killing 16 people, including the Iranian Revolutionary Guard Corps.
  • April 13 Retaliatory Strike: Iran attacked Israeli sovereign territory directly using missile and drone attacks; the response was a hit on Iranian missile defense in Isfahan
• Targeted Killings:
  • July 31: The murder of Hamas leader Ismail Haniyeh in Tehran, which has been attributed to Israeli intelligence.
  • ­September 27: Israel had assassinated Hezbollah leader Hassan Nasrallah in Beirut, while Iranian Brigadier General Abbas Nilforoushan was also killed there.
• Ballistic Missile Attack:
  • ­October 1: Iran fired 200 ballistic missiles against Israel, which caused allegedly minimal damage but marked an important escalation in the war.
• Continued Hostility: Such acts have continued the pattern of strike and counter-strike that has led to the latest attacks by Israel as a continuation of its pledge to retaliate against Iranian aggressions.

Hostility Between Israel and Iran: Historical and Current Dynamics

• Historical Shift from Allies to Adversaries:
  • The relationship between Israel and Iran took a drastic turn after the 1979 Islamic Revolution in Iran, which ushered in a regime ideologically opposed to Israel. Prior to this, the two nations shared a cordial relationship.
• Non-recognition and Hostile Rhetoric:
  • Post-revolution, Iran has consistently refused to recognize Israel’s right to exist. Iranian leaders, including Supreme Leader Ayatollah Ali Khamenei, have often expressed hostile sentiments, referring to Israel as a “cancerous tumor” meant to be eradicated.
• Engagement in Covert Conflicts:
  • The countries have been involved in a covert “shadow war,” where they target each other’s assets indirectly, avoiding open warfare but maintaining a state of hidden conflict.
• Escalation Due to Proxy Support:
  • Tensions have been exacerbated by Iran’s support for groups like Hamas and Hezbollah, which Israel views as terrorist organizations. This support is seen by Israel as a direct threat to its security.

Implications of the Israel-Iran Conflict for India

Disruption of Red Sea Trade Routes:

• Any direct conflict between Israel and Iran risks prolonging disruptions in the Red Sea, impacting India’s trade with Europe, the US, Africa, and West Asia, which heavily relies on this critical maritime route.

Impact on Indian Petroleum Exports:

• Conflicts in shipping routes to the Red Sea have led to a rise in freight costs to Indian exporters and reduced the profitability of exports in this trade area, particularly petroleum.

Problems in Europe

• Increased freight costs are a result of regional conflicts that impact the profit margins of India’s export to Europe, which includes machinery and petroleum products.

Opportunities in Trade with West Asia:

• In fact, despite the war, the growth of bilateral trade between India and the GCC has been going up. This would see a shift in the pattern of trade flows, with a potential shift towards regional players, such as Saudi Arabia and the UAE.

Crisis to the India-Middle East-Europe Economic Corridor (IMEC)

• The war is likely to delay the full establishment of a more efficient route for trading with India, the Gulf, and Europe. The result would be a reduction in the dependence on the Suez Canal.

-Source: Indian Express

21st Livestock Census

Context:

Recently, the Union Minister of Fisheries, Animal Husbandry and Dairying launched the 21st Livestock Census in New Delhi.

Relevance:

GS III: Agriculture

21st Livestock Census

• Conducted every five years, the Livestock Census systematically counts domesticated animals, poultry, and stray animals across the country.
• Information gathered includes details about species, breed, age, sex, and ownership of the animals.
• Since its inception in 1919, there have been 20 censuses, with the latest conducted in 2019.
• The 21st census is scheduled from October 2024 to February 2025.

Focus Areas of the 21st Livestock Census

• The upcoming census, directed by the Department of Animal Husbandry and Dairying, will cover sixteen animal species including cattle, buffalo, sheep, goats, pigs, camels, and more exotic animals like yaks, rabbits, and elephants.
• Data will be collected on 219 indigenous breeds recognized by the ICAR-National Bureau of Animal Genetic Resources (NBAGR).
• Extends to various types of poultry such as chickens, ducks, turkeys, and even less common birds like ostriches and emus.

Technological Advancements in Data Collection

• Digital Implementation: Continuing the digital approach from 2019, the census will utilize online data collection through a dedicated mobile application and digital dashboards for monitoring.
• Geolocation Features: Data collection sites will be geo-tagged to enhance the accuracy and verifiability of the information gathered.
• Report Generation: Livestock census reports will be generated using specialized software, ensuring efficiency and accessibility.

New Data Points in the 21st Census

• For the first time, the census will explore the contributions of pastoralists to the livestock industry, examining their socio-economic conditions and livestock holdings.
• The census aims to provide a more detailed understanding of the economic impact of livestock on households and will include data on the gender distribution of stray cattle, offering deeper insights into the sector.

-Source: Indian Express

National Mission for Manuscript

Context:

Recently the Ministry of Culture and Tourism shed light on the achievements made in the National Mission for Manuscripts and National Culture Fund.

Relevance:

GS II: Government Policies and Interventions

Dimensions of the Article:

1. National Mission for Manuscripts
2. National Culture Fund (NCF)

National Mission for Manuscripts

• Establishment: 2003, by the Ministry of Tourism and Culture, Government of India.
• Objectives:
  • Documentation
  • Conservation
  • Digitization
  • Online dissemination of India’s manuscript heritage.
• Infrastructure: Over 100 Manuscripts Resource Centres and Manuscripts Conservation Centres across India.
• Collection: Approximately ten million manuscripts, the largest in the world, covering various themes, textures, scripts, languages, calligraphies, illuminations, and illustrations.
• Definition of a Manuscript: A handwritten document on materials like paper, bark, cloth, metal, or palm leaf, at least seventy-five years old, with significant scientific, historical, or aesthetic value.
• Distinction: Manuscripts differ from historical records like epigraphs and firmans, as they primarily convey knowledge content rather than direct historical facts.
• Diversity: Manuscripts exist in hundreds of different languages and scripts.

National Culture Fund (NCF)

• Establishment: 1996, under the Charitable Endowment Act, 1890.
• Purpose: To mobilize additional resources through Public-Private Partnerships (PPP) for promoting, protecting, and preserving India’s cultural heritage.
• Functions:
  • Financing mechanism for donor/sponsor institutions to support the protection, restoration, conservation, and development of India’s cultural and heritage sites, including monuments and cultural traditions.
  • Training and development of specialists and cultural administrators.
  • Expanding space in existing museums and constructing new museums for special galleries.
  • Documenting cultural expressions and forms that are losing relevance or facing extinction.
• Management:
  • Managed by a Council chaired by the Minister of Culture and an Executive Committee chaired by the Secretary.
  • Projects are overseen by a Project Implementation Committee (PIC) with representatives from donors, implementers, and NCF.
  • The Comptroller and Auditor General of India annually audit the accounts of NCF.
• Platform: NCF offers a reliable and innovative platform for partnerships in heritage, culture, and the arts.

What is a Manuscript?

• Manuscript is a composition done in handwriting on paper, bark, cloth, metal, palm leaf, and other materials that have come to be at least seventy-five years old, or they are of outstanding significance to science, history, or aesthetics.
• Lithographs and printed volumes are not manuscripts.
• Manuscripts appear in hundreds of different languages and scripts.
• Many scripts are used to write the same language. For instance, Sanskrit is written in Oriya script, Grantha script, Devanagari script, etc.
• Manuscripts are different from other historical inscriptions like epigraphs on rocks, firmans, and revenue records as they directly relate to happenings or procedures in historical times.
• Manuscripts carry knowledge.

-Source: The Hindu

Cybersquatting

Context:

Recently, a Delhi based developer registered the domain, ‘JioHotstar,’ which ignited a debate on cybersquatting.

Relevance:

GS III: Science and Technology

Cybersquatting

• Cybersquatting involves the registration or use of domain names with the intent to profit from the trademark belonging to someone else, typically a known brand or individual’s name.
• Often viewed as a form of extortion, cybersquatting can also be seen as a tactic to siphon business from competitors or disrupt their operations.

Types of Cybersquatting

• Typosquatting: This involves purchasing domain names that contain common typographical errors of well-known brands (e.g., “yajoo.com” instead of “yahoo.com”) to capture traffic from users who mistype URLs.
• Identity Theft: Cybersquatters may duplicate the website of a legitimate brand to deceive consumers by creating a convincing but fraudulent site.
• Name Jacking: This form targets celebrities or public figures by impersonating them online through fake websites or social media profiles.
• Reverse Cybersquatting: Here, individuals falsely claim ownership of a trademark and accuse the actual domain owner of cybersquatting, effectively reversing the roles.

Legal Landscape in India

• India lacks specific legislation that directly addresses cybersquatting.
• Under the Trademark Act of 1999, domain names are treated as trademarks. Therefore, unauthorized use of domain names that are identical or confusingly similar to registered trademarks constitutes trademark infringement, actionable under Section 29 of the Act.

-Source: Indian Express

Centre Aims to Complete Bhu-Aadhaar Registration for Rural Land Parcels by 2026

Context:

Three years into the initiative, only 30% of rural land parcels have been registered with Bhu-Aadhaar. In response, the central government is intensifying efforts to ensure complete registration by 2026.

Relevance:

GS II: Government Policies and Interventions

About Bhu-Aadhaar:

• Bhu-Aadhaaris or Unique Land Parcel Identification Number (ULPIN).
• ULPIN was launched in 2021 under the Central government’s Digital India Land Records Modernisation Programme (DILRMP).
• It is going to systematize and bring uniformity to the process that is being followed by the states while providing unique identification numbers to the land parcels.
• It is granted to a piece of land as a measure of the longitude and latitude coordinates of the piece of land and is contingent on detailed surveys and geo-referenced cadastral maps.
• Under this system an alpha-numeric identity consisting of 14 digits is granted to every piece of land.
• It comprises State code, District code, Sub-district code, Village code and a Unique plot ID number.
• The ULPIN or Bhu-Aadhaar, once generated is stamped on the actual land record document in possession of the owner.
• The same ULPIN will be permanently attached to the plot of land. Even if the land is transferred, sub-divided, or undergoes any change, the ULPIN will remain the same for that geographic boundary.

Important goals of ULPIN/Bhu-Aadhaar are

• Unique ID to each piece of land for easy identification and retrieval of records.
• Digital creation of land records that have details about the land owners, boundaries of plots, area, usage, etc.
• Linkage of land records with property registration processes
• Online delivery of land record services

-Source: The Print