Current Affairs 02 March 2024

CONTENTS

1. Ensuring Sustainable Support for Research and Development Funding
2. Challenges in Regulating Coal Mining in Nagaland due to Article 371A
3. Financial Action Task Force
4. Houthi Attacks on Red Sea Shipping and Global Supply Chain Vulnerabilities
5. BioTRIG
6. Very Short-Range Air Defence System
7. Jacaranda Bloom

Ensuring Sustainable Support for Research and Development Funding

Context:

National Science Day, observed on 8th February each year, commemorates the discovery of the Raman Effect and recognizes the invaluable contributions of scientists to India’s progress. The day emphasizes the pivotal role of science in fostering sustainable development.

Relevance:

GS III: Science and Technology

Dimensions of the Article:

1. National Science Day
2. India’s Research and Development (R&D) Spending: A Concerning Decline
3. Challenges in Sustainable Funding for Research and Development (R&D)
4. Strategies to Enhance R&D Spending in India

National Science Day

Origin of the Day:

• National Science Day is commemorated on the day of the discovery of the Raman Effect by Indian Physicist Chandrasekhara Venkata Raman.
• The Raman Effect involves the scattering of light through transparent materials, causing alterations in wavelength and energy.

Discovery and Recognition:

• In 1928, on 28th February, CV Raman made the groundbreaking discovery of the Raman Effect.
• For his significant contributions to Physics, he was awarded the Nobel Prize in Physics in 1930.

Theme of the Day:

• The theme for National Science Day is “Indigenous Technologies for Viksit Bharat.”

Significance:

• Raises awareness about the practical applications of science in daily life.
• Acknowledges and celebrates scientists’ efforts and achievements in advancing human welfare.

Observing the Day:

• Understanding the progress of science and technology.
• Identifying areas that require additional efforts for improvement.

India’s Research and Development (R&D) Spending: A Concerning Decline

Current Expenditure Trends:

• In 2020-21, India’s R&D spending stands at 0.64% of the GDP, a decrease from 0.8% in 2008-2009 and 0.7% in 2017-2018.

Government Calls and Policy Goals:

• Despite government agencies urging a doubling of R&D spending, the current trend shows a decline.
• The 2013 Science, Technology, and Innovation Policy aimed for 2% of GDP for Gross Expenditure on R&D (GERD), a goal reiterated in the 2017-2018 Economic Survey.

Uncertain Factors Impacting R&D Spending:

• The reasons for the reduction in R&D spending are unclear.
• Possible factors include insufficient coordination among government agencies and a lack of strong political will to prioritize R&D expenses.

Global Comparisons:

• Developed nations allocate between 2% and 4% of their GDP to R&D.
• In 2021, OECD member countries averaged 2.7% of GDP on R&D, with the U.S. and the U.K. consistently exceeding 2% over the past decade.

Advocating for Increased Allocation:

• Experts recommend that India should allocate at least 1%, ideally 3%, of its GDP annually to R&D until 2047 to drive meaningful development through science.

Challenges in Sustainable Funding for Research and Development (R&D)

Underutilization of Budget Allocations:

• Departments like the Department of Biotechnology (DBT), Department of Science and Technology (DST), and Department of Scientific and Industrial Research (DSIR) consistently under-utilize their budget allocations.
• In 2022-2023, DBT, DST, and DSIR used only 72%, 61%, and 69% of their estimated budget allocations, respectively.

Capacity Issues and Delays:

• Insufficient capacity leads to delays in grant and salary disbursements, adversely affecting the progress of scientific research and development projects.

Broader Under-Spending Issue:

• India’s overall under-spending on research and development exacerbates the impact of under-utilization, necessitating both increased funding and enhanced spending efficiency.

Uncertain Government Funding:

• Government funding for science is uncertain, susceptible to changes in political priorities, economic conditions, and competing demands across sectors.
• Non-prioritization of R&D funding within government budgets results in inadequate allocations compared to other sectors, reflecting a lack of recognition of its importance for national development and innovation.

Private Sector Hesitancy:

• In 2020-2021, the private sector contributed 36.4% of Gross Expenditure on R&D (GERD), while the Union government’s share was 43.7%.
• In economically developed countries, around 70% of R&D investment comes from the private sector.
• Hesitancy in private-sector funding may stem from challenges in evaluating R&D in India, ambiguous regulatory roadmaps deterring investors, a lack of clear exit options in certain sectors, such as biotechnology, and concerns about intellectual property rights theft.

Strategies to Enhance R&D Spending in India

Scaling Investment for Development:

• Recognize that sustained, substantial investment in science is crucial for progress. India needs to outspend developed countries in R&D to achieve ‘developed nation’ status.

Philanthropic Contributions:

• Encourage wealthy individuals, corporations, and foundations to invest in R&D through philanthropy. Establish dedicated funds or grants for scientific research to attract donations from those committed to societal progress.

Academia-Industry Partnerships:

• Facilitate collaborations between academia and industry to harness resources and expertise from both sectors.
• Industry can provide funding, equipment, and real-world problems, while academic institutions offer scientific knowledge and talent. Government incentives or tax breaks can encourage such partnerships.

Private Investment Initiatives:

• Encourage venture capital firms and angel investors to invest in R&D projects with high potential for commercialization.
• Recognize the role of startups and small enterprises in driving innovation and provide them with the necessary private investment to scale their research efforts.

Implementation of National Research Foundation:

• Expedite the implementation of initiatives like the Anusandhan National Research Foundation.
• Ensure adequate funding and efficient utilization to support R&D activities and promote scientific advancements.

-Source: The Hindu

Challenges in Regulating Coal Mining in Nagaland due to Article 371A

Context:

The regulation of coal mining in Nagaland faces a significant hurdle due to Article 371A of the Indian Constitution. This constitutional provision, which upholds Naga customary law, creates complications for government oversight of small-scale mining, particularly in the aftermath of recent fatalities resulting from a rat-hole mine explosion.

Relevance:

GS II: Polity and Governance

Dimensions of the Article:

1. Article 371A of the Indian Constitution: Special Provisions for Nagaland
2. Regulation of Rat-Hole Mining in Nagaland: Challenges and Policies

Article 371A of the Indian Constitution: Special Provisions for Nagaland

Introduction and Background:

• Article 371A became part of the Constitution in 1962 through the 13th Amendment, providing special provisions for Nagaland (formerly Naga Hills and Tuensang Area).

Scope of Article 371A:

• States that no act of Parliament shall apply to Nagaland concerning:
  • Religious or social practices of the Nagas.
  • Naga customary law and procedure.
  • Administration of civil and criminal justice following Naga customary law.
  • Ownership and transfer of land and its resources.

Legislative Authority:

• Specifies that the Nagaland Legislative Assembly can alter these provisions through a resolution, indicating a level of autonomy in decision-making.

Impact on State Government Authority:

• Results in limited authority and jurisdiction for the state government over land and resources.
• Local communities own and control these resources, governed by their customary laws and practices.

Regulation of Rat-Hole Mining in Nagaland: Challenges and Policies

Coal Reserves in Nagaland:

• Nagaland possesses substantial coal reserves totaling 492.68 million tonnes, but these are dispersed irregularly in small pockets across a vast area.

Mining Policy and Rat-Hole Mining:

• The Nagaland Coal mining policy, established in 2006, permits rat-hole mining due to the scattered nature of coal deposits, making large-scale operations impractical.

Characteristics of Rat-Hole Mining:

• Rat-hole mining involves extracting coal from narrow horizontal tunnels, often dug by hand, posing risks of accidents and environmental hazards.

Licensing for Rat-Hole Mining:

• Rat-hole mining licenses, known as small pocket deposit licenses, are exclusively granted to individual landowners for limited durations and under specific conditions.
• Section 6.4(ii) of the Nagaland Coal Policy (First Amendment) of 2014 sets restrictions on mining areas, annual production, and prohibits heavy machinery usage.

Compliance and Clearances:

• Rat-hole mining operations require consent from relevant departments, including Forest and Environment, to ensure compliance with environmental regulations.

Challenges in Regulation:

• Despite clearances and defined mining plans, instances of illegal rat-hole mining persist, complicating regulatory efforts.

Impact of Article 371A:

• Article 371A grants Nagaland special rights over its land and resources, making it challenging for the government to impose regulations that might be perceived as infringing on these rights.

Struggles in Small-Scale Mining Regulation:

• The Nagaland government faces difficulties in effectively regulating small-scale mining, particularly those conducted by individual landowners, due to limitations posed by Article 371A.

Safety Concerns and Urgency for Regulations:

• Recent deaths in a rat-hole mine underscore the safety risks associated with unregulated mining practices, emphasizing the need for effective regulations and proper safety measures.

-Source: The Hindu

Financial Action Task Force

Context:

The recent removal of the United Arab Emirates (UAE) from the Financial Action Task Force (FATF) grey list has sparked optimism for investment landscapes, particularly in India’s Non-Banking Financial Companies (NBFCs).

Relevance:

GS II: International Relations

Dimensions of the Article:

1. Impact of UAE’s Exit from FATF Grey List on Investments in Indian NBFCs
2. Financial Action Task Force (FATF)

Impact of UAE’s Exit from FATF Grey List on Investments in Indian NBFCs

RBI Regulations in 2021:

• A 2021 RBI circular delineated investment regulations for Non-Banking Financial Companies (NBFCs), categorizing investments from compliant and non-compliant FATF jurisdictions.

Restrictions on Non-Compliant Investments:

• Investments from non-compliant jurisdictions faced restrictions, particularly in acquiring significant influence in Indian NBFCs.

UAE’s Removal from FATF Grey List:

• The UAE’s exit from the FATF grey list simplifies investment pathways for UAE-based investors in Indian NBFCs.

Encouraging Cross-Border Investments:

• The eased restrictions promote cross-border investments between India and the UAE, fostering growth in both countries’ financial sectors.

Reduced KYC Requirements for FPIs:

• The UAE’s removal may lead to reduced Know Your Customer (KYC) requirements for Foreign Portfolio Investments (FPIs), potentially doubling FPI inflows into India.

Economic Growth and FDI:

• The exit of the UAE from the grey list may attract increased Foreign Direct Investment (FDI), contributing to economic growth in both regions.

Competition, Innovation, and Increased Investments:

• The heightened competition between the two regions could drive innovation, attracting more investments and creating a conducive environment for economic development.

Financial Action Task Force (FATF)

• The Financial Action Task Force (on Money Laundering) (FATF) is an intergovernmental organisation founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
• In 2001, its mandate was expanded to include terrorism financing.
• FATF is a “policy-making body” that works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
• FATF monitors progress in implementing its Recommendations through “peer reviews” (“mutual evaluations”) of member countries.
• Since 2000, FATF has maintained the FATF blacklist (formally called the “Call for action”) and the FATF greylist (formally called the “Other monitored jurisdictions”).
• The objectives of FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.

FATF Greylists

• FATF greylist is officially referred to as Jurisdictions Under Increased Monitoring.
• FATF grey list represent a much higher risk of money laundering and terrorism financing but have formally committed to working with the FATF to develop action plans that will address their AML/CFT deficiencies.
• The countries on the grey list are subject to increased monitoring by the FATF, which either assesses them directly or uses FATF-style regional bodies (FSRBs) to report on the progress they are making towards their AML/CFT goals.
• While grey-list classification is not as negative as the blacklist, countries on the list may still face economic sanctions from institutions like the IMF and the World Bank and experience adverse effects on trade.
• Unlike the next level “blacklist”, greylisting carries no legal sanctions, but it attracts economic strictures and restricts a country’s access to international loans

FATF Blacklists

• FATF Blacklists is Officially known as High-Risk Jurisdictions subject to a Call for Action.
• FATF blacklist sets out the countries that are considered deficient in their anti-money laundering and counter-financing of terrorism regulatory regimes.
• The list is intended to serve not only as a way of negatively highlighting these countries on the world stage, but as a warning of the high money laundering and terror financing risk that they present.
• It is extremely likely that blacklisted countries will be subject to economic sanctions and other prohibitive measures by FATF member states and other international organizations.

-Source: The Hindu

Houthi Attacks on Red Sea Shipping and Global Supply Chain Vulnerabilities

Context:

Ongoing Houthi Assaults on Commercial Vessels in the Red Sea underscore Global Supply Chain Vulnerabilities, prompting a reassessment of alternative routes for international trade.

Relevance:

GS II: International Relations

Dimensions of the Article:

1. The Red Sea and its Impact on Global Trade
2. India-Middle East Europe Economic Corridor (IMEC)
3. Impact of Israel-Palestine Conflict on IMEC Project
4. Making IMEC Project Viable

The Red Sea and its Impact on Global Trade

About the Red Sea:

• Geographical Significance:
  • The Red Sea, positioned between Africa and Asia, is a crucial seawater inlet of the Indian Ocean.
• Strategic Importance:
  • Owes its strategic relevance to the Bab el-Mandab Strait, located between Yemen and Djibouti.
• Trade Volume:
  • One of the busiest transit points globally, facilitating almost 12% of international merchandise trade.
• Consequences of Conflict:
  • Ongoing conflicts in the Red Sea have compelled major carriers to re-route shipments via the Cape of Good Hope.
• Impact on Shipping:
  • Resulted in elevated ocean freight, increased insurance expenses, and extended voyage times, causing delays and product shortages.
• Economic Ramifications:
  • The re-routing has driven up transportation costs, and these increased shipping costs are likely to translate into higher commodity prices for consumers.

Effects on India:

• Trade Routes:
  • India heavily relies on the Red Sea route for trade with European and North African countries, constituting around 24% of exports and 14% of imports.
• Bilateral Trade:
  • In the fiscal year 2022-23, India’s bilateral trade with Europe and North Africa amounted to $189 billion and $15 billion, respectively.
• Impact on Indian Shipments:
  • Rising threats in the region have led Indian exporters to withhold approximately 25% of their cargo ships passing through the Red Sea, as reported by the Federation of Indian Export Organisations (FIEO).
• Global Alternatives:
  • China is actively promoting China-Europe freight trains, part of the Belt and Road Initiative (BRI), as an alternative route amid the disruptions in the Red Sea.
• Underutilized Corridor:
  • The India-Middle East-Europe Economic Corridor (IMEC), introduced during the G-20 summit in 2023, remains an overlooked alternative despite the challenges faced by traditional trade routes.

India-Middle East Europe Economic Corridor (IMEC):

MoU Signing and Project Components:

• G20 Summit Initiative:
  • An MoU was endorsed during the G20 Summit in September 2023 in New Delhi, including key nations like India, the United States, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, and the European Union.
• Comprehensive Infrastructure:
  • IMEC envisions a holistic development plan involving rail connectivity, shipping lines, high-speed data cables, and energy pipelines.
• Complementing Existing Networks:
  • These components will complement the existing maritime and road networks, aiming to enhance the smooth movement of trade and services among India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.

Significance of IMEC Project:

• Infrastructure and Connectivity Emphasis:
  • IMEC holds significance not only for its infrastructure and connectivity aspects but also from a geopolitical standpoint.
• Dual Corridors:
  • The project introduces two distinctive corridors – the East Corridor linking India to the Arabian Gulf and the Northern Corridor connecting the Arabian Gulf to Europe.
• Economic Stimulation:
  • The MoU asserts that IMEC is anticipated to stimulate economic development by fostering enhanced connectivity and economic integration among Asia, the Arabian Gulf, and Europe.
• Additional Dimensions:
  • Beyond connectivity, IMEC emphasizes reliable and secure regional supply chains, improved trade accessibility, and facilitation.
• Geopolitical Counter to BRI:
  • In geopolitical terms, IMEC is positioned as a strategic counter to China’s Belt & Road Initiative (BRI).
• Concerns about BRI:
  • India has long voiced objections to the BRI, particularly the China-Pakistan Economic Corridor, citing territorial claims as a primary concern.

Impact of Israel-Palestine Conflict on IMEC Project:

• Complicated Diplomacy:
  • The intensification of the Israel-Hamas conflict complicates the diplomatic cooperation required for a project of IMEC’s magnitude.
• Potential Hindrance to Peace Deal:
  • The Saudi Arabia-Israel peace deal might face delays due to mounting anger in the Arab world over Israel’s actions in northern Gaza.
• Geopolitical Tensions:
  • Recent events, including the cancellation of President Joe Biden’s visit to Jordan and attacks in the Middle East, contribute to heightened geopolitical tensions.
• Regional War’s Global Repercussions:
  • While the direct impact of the conflict remains regional, its geopolitical consequences extend far beyond, potentially affecting the proposed IMEC corridor.

Making IMEC Project Viable:

• Economic Logic Persists:
  • Despite challenges, the economic rationale of the IMEC corridor remains, encouraging stakeholders to persist in their efforts.
• Empirical Economic Study:
  • Conducting an empirical study on the corridor’s economic benefits is crucial, with estimates suggesting a 40% reduction in journey time from India to Europe and a 30% cut in transit costs.
• Financial Framework Establishment:
  • A robust financial framework needs to be established, attracting investments from governments, international organizations, and private sector entities.
• Multi-Nation Operational Framework:
  • Creating a comprehensive multi-national operational framework is essential, considering the involvement of different legal systems in facilitating trade.
• Constituting a Forum:
  • Establishing a dedicated forum for the corridor is necessary to coordinate and undertake the mentioned activities for its successful development.

-Source: The Hindu

BioTRIG

Context:

A recent study has claimed that BioTRIG, a new waste management technology could help rural Indians.

Relevance:

GS III: Environment and Ecology

Dimensions of the Article:

1. BioTRIG: Revolutionizing Waste Management through Pyrolysis
2. Understanding Pyrolysis

BioTRIG: Revolutionizing Waste Management through Pyrolysis

• Innovative Waste Management Technology:
  • BioTRIG stands as a pioneering waste management technology centered on the pyrolysis system, introducing advanced methods for sustainable waste disposal.
• Operational Mechanism:
  • The process involves encapsulating waste within an oxygen-free chamber and subjecting it to temperatures exceeding 400 degrees Celsius. This results in the production of valuable chemicals.
• Products of Pyrolysis:
  • The study emphasizes three key products derived from pyrolysis – bio-oil, syngas, and biochar fertilizer, each carrying potential benefits for rural communities in India.

Significance of BioTRIG:

• Energy Sustainability:
  • Syngas and bio-oil generated in the pyrolysis process contribute to heat and power the system in subsequent cycles. Surplus electricity is redirected to power local homes and businesses.
• Clean-Burning Fuels:
  • Bio-oil, known for its clean-burning properties, presents an eco-friendly alternative to conventional cooking fuels, reducing indoor air pollution in households.
• Carbon Storage and Soil Improvement:
  • Biochar, another byproduct, serves the dual purpose of storing carbon and enhancing soil fertility, promoting sustainable agricultural practices.
• Greenhouse Gas Emission Reduction:
  • Computer simulations suggest that BioTRIG has the potential to significantly decrease greenhouse gas emissions from communities, making an estimated reduction of nearly 350 kg of CO2-eq per capita per annum.
• Holistic Benefits:
  • The implementation of BioTRIG could contribute to a multitude of positive outcomes, including the reduction of indoor air pollution, improved soil health, and the generation of clean power.

Understanding Pyrolysis:

Chemical Recycling Process:

• Pyrolysis is a form of chemical recycling that transforms residual organic materials into their elemental molecules.

Operational Procedure:

• It involves enclosing waste within an oxygen-deprived chamber and subjecting it to temperatures surpassing 400 degrees Celsius, resulting in the creation of valuable chemicals.

-Source: Down To Earth

Very Short-Range Air Defence System

Context:

The Defence Research and Development Organisation (DRDO) successfully conducted two flight tests of the Very Short-Range Air Defence System (VSHORADS) missile.

Relevance:

GS III: Defence

Dimensions of the Article:

1. Very Short-Range Air Defence System (VSHORADS): Safeguarding Low-Altitude Spaces

Very Short-Range Air Defence System (VSHORADS): Safeguarding Low-Altitude Spaces

Strategic Overview:

• VSHORADS stands as a fourth-generation Man Portable Air Defence System (MANPAD), meticulously crafted to counter low-altitude aerial threats across short distances.

Characteristics:

• Short-Range and Lightweight:
  • These systems are characterized by their short-range nature, lightweight construction, and portability, allowing them to be operated by individuals or small groups.

Indigenous Development:

• DRDO’s Innovation Hub:
  • Developed domestically, VSHORADS is a product of the Research Centre Imarat (RCI) in Hyderabad, under the umbrella of the Defense Research and Development Organisation (DRDO). Collaboration with various DRDO laboratories and Indian industry partners contributed to its creation.

Key Features:

• Defensive Capabilities:
  • Designed with a focus on short-range air defense, VSHORADS serves to protect ground forces and critical assets from low-altitude threats, encompassing helicopters and low-flying aircraft.
• Effective Range:
  • Boasting a range of up to 6 kilometers, this system provides a robust shield against aerial intrusions.
• Cutting-Edge Technologies:
  • Equipped with advanced features, the missile incorporates a Dual-band IIR Seeker, a miniaturized Reaction Control System, and integrated avionics.
• Propulsion System:
  • The missile’s propulsion is facilitated by a dual-thrust solid motor, enhancing its operational efficiency.
• Portability and Quick Deployment:
  • A key design aspect is the portability of both the missile and its launcher, ensuring swift deployment even in challenging terrains.

-Source:  India Today

Jacaranda Bloom

Context:

The early onset bloom of jacaranda set off alarm bells among residents and scientists in Mexico City.

Relevance:

Facts for Prelims

Jacaranda Bloom: A Lavender Spectacle

Scientific Identification:

• Also recognized by its synonym Jacaranda acutifolia, the Jacaranda bloom is associated with the deciduous tree Jacaranda mimosifolia from the Bignoniaceae family.

Native Habitat:

• Native to Brazil and North West Argentina, the blue jacaranda thrives in tropical climates, demanding well-drained soil and ample sunlight to unveil its captivating lavender touch.

Growing Characteristics:

• These hardy trees are extensively cultivated in warm regions and greenhouses, celebrated for their striking blue or violet flowers and visually appealing, oppositely paired, compound leaves.

Cultural Uses:

• In Brazil, the wood of the Jacaranda is employed in crafting guitars. While it holds no edible utility, its bark and roots offer medicinal benefits.

Wood Carving Potential:

• Recognized as a viable wood carving tree species, particularly in Kenya, the Jacaranda serves as an alternative for artistic endeavors.

Ecological Importance:

• The trees play a vital ecological role by attracting a significant number of hummingbirds and bees, contributing to biodiversity. A shift in flowering patterns could potentially impact these populations.

Concerns:

• An unusual occurrence has been observed, with some Jacarandas blooming in early January instead of their usual spring awakening, raising concerns about potential environmental changes.

-Source: The Hindu