Current Affairs Reverse Engineering – CARE (15-07-2024)
| News at a Glance |
| Polity and Governance: NITI Aayog report shows improved progress on SDGs |
| Centre begins efforts to implement Labour Codes |
| Social Issues: India’s population to peak in early 2060s to 1.7 billion before declining: United Nations |
| Economy: Financial Inclusion-Index rises to 64.2 in March 2024 |
| International Relations: The Yuan Challenge: India-Russia trade gap may threaten rupee internationalisation efforts |
NITI Aayog report shows improved progress on SDGs
Source: The Hindu
UPSC Syllabus Relevance: GS 2 (Polity and Governance)
Context: India’s progress on the 16 Sustainable Development Goals (SDGs).
Why in News
- The government think tank NITI Aayog released its fourth evaluation report of India’s progress on the 16 Sustainable Development Goals (SDGs).
SDG 1: No Poverty
- India has made substantial progress in reducing extreme poverty, contributing to a higher score for this goal.
- The government has implemented various policies and programs aimed at alleviating poverty, which have shown positive results.
SDG 2: Zero Hunger
- Reduction in Hunger: There has been a reduction in hunger levels across the country.
- Quality Nutrition: Despite the progress in reducing hunger, quality nutrition remains an area needing further attention.
- Efforts are required to ensure that the population has access to nutritious food.
SDG 3: Good Health and Well-Being
- Health conditions in India have improved due to enhanced public health services and increased insurance coverage.
- These measures have contributed to better healthcare outcomes for the population.
SDG 4: Quality Education
- High Teacher-Student Ratios: The education sector has benefited from favorable teacher-student ratios, improving access to education.
- Need for Teacher Quality Improvement: Despite the positive teacher-student ratios, there is a need for targeted interventions to improve teacher quality to enhance educational outcomes.
SDG 5: Gender Equality
- Income Inequality: There has been a slight drop in the ratio of women’s earnings compared to men, from 0.75 to 0.73.
- Other Gender Issues: Challenges remain in areas such as the sex ratio at birth, women owning land and assets, and women’s employment opportunities.
SDG 6: Clean Water and Sanitation
- This goal has been termed a “huge success” due to initiatives like the Swachh Bharat Mission and increased access to piped water.
- These efforts have significantly improved water and sanitation conditions across the country.
SDG 7: Affordable and Clean Energy
- India has achieved near-complete electrification, making this goal less of a concern.
- The widespread access to affordable and clean energy sources has been a significant achievement.
SDG 16: Peace, Justice, and Strong Institutions
- India’s performance on this goal is “pretty good” due to the rule of law and high Aadhaar enrolment rates, which help in maintaining peace and justice.
What are Sustainable Development Goals?
- The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
- It is a set of 17 SDGs which recognize that action in one area will affect outcomes in others and that development must balance social, economic, and environmental sustainability.
- Countries have committed to prioritizing progress for those who are furthest behind.
- The SDGs are designed to end poverty, hunger, AIDS, and discrimination against women.
- India in recent years has made significant efforts in achieving the Goal 13th of the SDGs in particular.
- The goal calls for taking urgent action to combat climate change and its impacts.
| CARE MCQ | UPSC PYQ |
Q1. Consider the following statements with respect to India’s Progress in Sustainable Development Goals (SDGs):
Which of the above statements is/are correct?
|
Q. Consider the following statements: (2016)
Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans: (b) |
| Answer 1– B
Explanation –
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India’s population to peak in early 2060s to 1.7 billion before declining: United Nations
Source: The Hindu
UPSC Relevance: GS2- Social Issues
Context: India’s population and World Population Prospects 2024
Why in News
- The World Population Prospects 2024 report was released recently which talks about the Population projections of India and World.
Global Population Projections
- According to the World Population Prospects 2024 report by the United Nations, the global population is projected to continue growing over the next 50-60 years, reaching a peak of around 10.3 billion in the mid-2080s, up from 8.2 billion in 2024.
- After this peak, the global population is expected to gradually decline to 10.2 billion by the end of the century.
- Palestine, in its capacity as an observer state, does not have the right to vote in the General Assembly or to put forward its candidature to U.N. organs.
India’s Population Projections
- Current and Peak Population: India’s population in 2024 is projected to be 1.45 billion. It is expected to peak in the early 2060s at about 1.7 billion.
- Decline After Peak: After reaching its peak, India’s population is projected to decline by 12%, falling to approximately 1.5 billion by the end of the century in 2100.
- Most Populous Country: Despite the decline, India will remain the world’s most populous country throughout the 21st century.
China’s Population Projections
- Current Population: As of 2024, China’s population is 1.41 billion.
- Decline in Population: China’s population is projected to fall to 1.21 billion by 2054 and further decline to 633 million by 2100.
- Largest Population Loss: China is expected to experience the largest absolute population loss, with a decline of 204 million people between 2024 and 2054. By 2100, China’s population could be comparable to its size in the late 1950s, with a reduction of more than half its current population.
Factors Influencing Population Decline
- Fertility Rates: The significant population decline in China is attributed to its current low fertility rate, averaging around one birth per woman over a lifetime. Sustained low fertility levels, even if they slightly increase, will continue to result in a significant long-term population decline.
- Comparison to Other Countries: Similar trends of population decline due to low fertility rates are observed in other countries, including Japan and Russia.
Expert Insights
- Clare Menozzi, UN DESA: Highlighted that India, currently the world’s most populous country, will maintain this status throughout the century, with its population peaking around the 2060s before a gradual decline.
- John Wilmoth, UN DESA: Explained that China’s significantly low population projection is primarily due to its low fertility rate, which if remains below the replacement level (2.1 births per woman), will lead to a substantial population decline over time. This trend is expected to result in China recording the largest population decline of any country by the end of the century.
World Population Prospects 2024
- On the occasion of World Population Day, the United Nations will release the 2024 edition of the World Population Prospects (WPP).
- This bi-annual report provides estimates and projections of the population size and age structure for all countries/areas of the world, and serves as a reference for both policy and research.
- World’s population is projected to peak around 10.3 billion people in mid-2080s, up from 8.2 billion in 2024.
- India’s population is expected to reach its peak in early 2060s and is expected to remain the world’s largest throughout century.
| CARE MCQ | UPSC PYQ |
Q2. Consider the following statements with respect to findings of World Population Prospects 2024:
Which of the above statements is/are correct?
|
Q. Which two countries follow China and India in the decreasing order of their populations? (2008)
(a) Brazil and USA (b) USA and Indonesia (c) Canada and Malaysia (d) Russia and Nigeria Ans: (b) |
| Answer 2– B
Explanation –
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Centre begins efforts to implement Labour Codes
Source: The Hindu
UPSC Relevance: GS2- Polity and Governance
Context: Labour Codes
Why in News
- The Union Labour Ministry has started efforts to implement the four Labour Codes, which were passed in Parliament in its second term in 2019 and 2020.
Background and Current Efforts
- After New government began its third term, efforts to implement the four Labour Codes, passed during its second term (2019-2020), have resumed.
- Despite being passed in Parliament, the Labour Codes have not been implemented due to objections from trade unions.
- The Centre has cited delays in some states framing rules as a reason for the delay.
Stakeholder Meetings and Positions
- Union Labour Minister’s Initiatives: New Union Labour Minister and Union Labour Secretary have started meeting with various trade unions.
- Seeking Cooperation: They are seeking cooperation from trade unions to implement the Labour Codes, despite opposition from many unions who argue the codes curtail workers’ rights and social security measures.
Trade Union Perspectives
- Bharatiya Mazdoor Sangh (BMS): Supports early implementation of the Code on Wages and Social Security but opposes provisions in the Industrial Relations Code and Occupational Safety and Health Code as anti-worker.
- Self-Employed Women’s Association (SEWA): Opposes the Labour Codes due to concerns about lack of social security measures for unorganized and migrant workers.
- Call for Detailed Consultations: BMS and other unions demand detailed consultations on the Labour Codes to address concerns before implementation.
Social Security Concerns
- SEWA’s Memorandum: Highlights the inadequacy of current social security laws for unorganized and migrant workers, urging reforms before implementation of the Labour Codes.
Opposition and Calls for Action
- Central Trade Unions’ Letter: Ten Central Unions, including SEWA, have urged the Labour Minister to convene a joint meeting with all Central Trade Unions to discuss worker issues and concerns.
- Indian Labour Conference (ILC): Senior trade union leaders, like Amarjeet Kaur, advocate for the immediate convening of the ILC, emphasizing it as a tripartite forum essential for addressing workers’ issues comprehensively.
Labour Codes
Code of Wages Act 2019:
- The bill aims to transform the old and obsolete labour laws into more accountable and transparent ones and seeks to pave the way for the introduction of minimum wages and labour reforms in the country.
- It regulates the wages and bonus payments in all employment areas where any industry, trade, business, or manufacturing is being carried out.
- The bill subsumes the following four labour laws:
- The Payment of Wages Act, 1936
- The Minimum Wages Act, 1948
- The Payment of Bonus Act, 1965
The Equal Remuneration Act, 1976
- It universalizes the provisions of minimum wages and timely payment of wages to all employees irrespective of the sector and wage ceiling and seeks to ensure “Right to Sustenance” for every worker and intends to increase the legislative protection of minimum wage.
- It has been ensured in the bill that employees getting monthly salary shall get the salary by 7th of next month, those working on a weekly basis shall get the salary on the last day of the week and daily wagers should get it on the same day.
- The Central Government is empowered to fix the floor wages by taking into account the living standards of workers. It may set different floor wages for different geographical areas.
- The minimum wages decided by the central or state governments must be higher than the floor wage.
Industrial Relations Code Bill, 2020:
- Industrial Employment (Standing Orders) Act, 1946 makes it obligatory for employers of an industrial establishment where 100 or more workers are employed to clearly define the conditions of employment and rules of conduct for workmen, by way of standing orders/services rules and to make them known to the workmen employed.
- The new provision for standing order will be applicable for every industrial establishment wherein 300 or more than 300 workers are employed or were employed on any day of the preceding twelve months.
- It was earlier suggested by the Standing Committee on Labour which also suggested that the threshold be increased accordingly in the Code itself and the words ‘as may be notified by the Appropriate Government’ be removed because reform of labour laws through the executive route is undesirable and should be avoided to the extent possible.
- It also introduces new conditions for carrying out a legal strike. The time period for arbitration proceedings has been included in the conditions for workers before going on a legal strike as against only the time for conciliation at present.
- No person employed in any industrial establishment shall go on strike without a 60-day notice and during the pendency of proceedings before a Tribunal or a National Industrial Tribunal and sixty days after the conclusion of such proceedings.
- It has also proposed to set up a re-skilling fund for training of retrenched workers with contribution from the employer, of an amount equal to 15 days last drawn by the worker.
Social Security Code Bill, 2020:
- It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganized workers, gig workers and platform workers.
- Also, aggregators employing gig workers will have to contribute 1-2% of their annual turnover for social security, with the total contribution not exceeding 5% of the amount payable by the aggregator to gig and platform workers.
Occupational Safety, Health and Working Conditions Code Bill, 2020:
- It has defined inter-state migrant workers as the worker who has come on their own from one state and obtained employment in another state, earning up to Rs. 18,000 a month.
- The proposed definition makes a distinction from the present definition of only contractual employment.
- It has dropped the earlier provision for temporary accommodation for workers near the worksites and has proposed a journey allowance, a lump sum amount of fare to be paid by the employer for to and fro journey of the worker to their native place from the place of their employment.
| CARE MCQ | UPSC PYQ |
Q3. Consider the following statements with reference to the Labour Codes in India:
Which of the statements given above is/are correct?
|
Q. Consider the following statements: (2017)
Which of the above statements is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans: (b) |
| Answer 3 C
Explanation
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Financial Inclusion-Index rises to 64.2 in March 2024
Source: Indian Express
UPSC Syllabus Relevance: GS 3- Economy, Financial Inclusion
Context: Financial Inclusion Index (FI-Index)
Why in News
- The Financial Inclusion Index (FI-Index) stood at 64.2 in March 2024 from 60.1 in March 2023 as per the Reserve Bank of India (RBI).
What is the FI-Index?
- The Financial Inclusion Index (FI-Index) is a comprehensive measure that assesses the extent of financial inclusion within a country.
- It condenses information from various aspects of financial services into a single numerical value, ranging from 0 to 100.
- A higher value indicates greater financial inclusion, while a lower value suggests more significant financial exclusion.
Purpose of financial inclusion index
- RBI said that it has constructed FI-Index to capture the extent of financial inclusion across the country.
- The index captures information on various aspects of financial inclusion in a single value ranging between 0 and 100, where 0 represents complete financial exclusion and 100 indicates full financial inclusion.
- According to the central bank, the annual FI-Index for the period ending March 2021 is 53.9 as against 43.4 for the period ending March 2017.
- RBI will be publishing Fi-Index annually in July every year.
Components of the FI-Index
- The FI-Index comprises three main parameters, each weighted differently:
- Access (35% weight): Measures the ease of access to financial services.
- Usage (45% weight): Evaluates the extent to which financial services are utilized by the population.
- Quality (20% weight): Assesses the quality and reliability of financial services provided.
Each of these parameters is further broken down into dimensions that collectively account for 97 indicators.
These indicators cover aspects such as banking services, investments, insurance, postal services, and pension sectors.
Recent Changes in the FI-Index
- According to the Reserve Bank of India (RBI), the FI-Index showed significant improvement:
- The FI-Index rose from 60.1 in March 2023 to 64.2 in March 2024.
- This improvement was attributed primarily to advancements in the Usage dimension, indicating increased utilization and deeper penetration of financial services among the population.
Construction and Publication
- The FI-Index has been developed without a specific ‘base year’, making it a cumulative reflection of efforts towards financial inclusion over time.
- It is constructed in collaboration with government bodies and sectoral regulators to ensure comprehensive coverage of financial sectors.
Annual Publication
- The FI-Index is published annually in July, providing stakeholders with a yearly update on the progress and status of financial inclusion efforts in the country.
| CARE MCQ | UPSC PYQ |
Q4. Consider the following statements regarding the Financial Inclusion Index (FI-Index), as per the Reserve Bank of India (RBI):
Which of the statements given above is/are correct? A. 1 only B. 2 only C. 1 and 2 only D. 2 and 3 only |
Q. ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for (2015)
(a) providing housing loan to poor people at cheaper interest rates (b) promoting women’s Self-Help Groups in backward areas (c) promoting financial inclusion in the country (d) providing financial help to the marginalized communities Ans: (c) |
| Answer 4 D
Explanation
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The Yuan Challenge: India-Russia trade gap may threaten rupee internationalisation efforts
Source: Indian Express
UPSC Syllabus Relevance: GS2- International Relations
Context: The Yuan Challenge
Why in news
- India plans to significantly increase bilateral trade with Moscow to $100 billion by 2030 as part of a strategic effort to cut its rising oil import costs and lessen reliance on the costly US dollar.
India’s trade dynamics and its strategic economic decisions:
- Dependency on Russian Oil: India has significantly increased its imports of Russian oil, saving over $10 billion due to lower costs compared to other suppliers. This move aims to mitigate its high oil import bill, a major contributor to its trade deficit.
- Trade Deficit Concerns: Despite importing more from Russia, India’s exports to Russia have not grown proportionately. This has resulted in a substantial trade deficit of $57 billion in FY24, highlighting a significant imbalance in bilateral trade.
- Geopolitical and Economic Implications: The imbalance in trade with Russia poses challenges. While India benefits from cheaper oil imports, the inability to increase exports to Russia limits its ability to balance trade and reduce dependence on the US dollar.
- Impact on Currency Policy: India’s efforts to internationalize the rupee could be hampered if trade imbalances with Russia persist. The potential reliance on the Chinese yuan, due to continued trade deficits with Russia, could conflict with India’s broader strategic goals.
- Strategic Goals for 2030: India’s target to boost bilateral trade with Russia to $100 billion by 2030 underscores its strategic intent. However, achieving balanced trade and reducing reliance on the US dollar remain critical challenges.
Why is the widening trade gap with Russia benefiting the yuan?
- Growth and Balance: China’s exports to Russia have surged significantly, outpacing the growth in Russian oil imports into China. This has resulted in a more balanced two-way trade relationship between the two nations compared to India’s trade with Russia.
- Currency Usage: Due to the balanced trade, a substantial portion (95%) of trade between China and Russia is conducted in domestic currencies—primarily the Chinese yuan. This has bolstered the yuan’s prominence in the Russian market, even surpassing the US dollar in popularity.
- Geopolitical and Economic Implications: China’s ability to capitalize on export opportunities in Russia amid Western sanctions has allowed it to strengthen economic ties and promote the use of its currency in bilateral trade. This contrasts with India’s struggle to balance trade with Russia and promote the rupee’s internationalization.
- Impact on India: India’s reliance on Russian oil, coupled with a large trade deficit, has led to challenges in promoting the use of the rupee in bilateral transactions. Indian refineries facing requests for payments in Chinese yuan for Russian oil highlight these challenges.
- Strategic Considerations: The situation underscores the strategic importance for India to address trade imbalances with Russia, enhance export opportunities, and diversify its economic engagements to reduce dependency on the US dollar.
How can India internationalise the rupee?
- Dependency on the US Dollar: India aims to reduce its reliance on the US dollar for international trade settlements. However, tensions with China have prevented India from supporting the yuan as an alternative currency for trade settlements.
- RBI’s Initiatives: The Reserve Bank of India (RBI) introduced measures to facilitate trade settlements in rupees as an alternative arrangement, seeking to promote the use of the rupee in regional trade.
- Criteria for International Currency: According to the FY23 Economic Survey, for a currency to become international, it needs significant usage in trade invoicing. Currently, the US dollar dominates global forex turnover, while the rupee accounts for a very small share (1.6%).
- Benchmark for Rupee Internationalization: The BIS Triennial Central Bank Survey 2022 suggests that if the rupee’s turnover rises to match the share of non-US, non-Euro currencies (around 4%), it could be considered as an international currency.
- Challenges and Outlook: India faces significant challenges in increasing the rupee’s international usage, including overcoming dominance by the US dollar, geopolitical tensions affecting currency choices, and fostering confidence in the rupee’s stability and liquidity.
Why are exports to Russia challenging?
- The biggest challenge has been the reluctance of private banks to facilitate trade with Russia due to fears of Western sanctions.
- Most private banks have significant business interests in Western countries and multiple branches that could face sanctions imposed by the European Union (EU) and the US.
- Indian exporters are also facing difficulties using the rupee settlement mechanism while trading with Russia.
- Exporters initially complained that although the RBI had launched the mechanism, they were unable to use it due to the absence of a Standard Operating Procedure (SOP) for banks.
- Moreover, the ruble and rupee, unlike the yuan, have experienced considerable volatility, complicating trade in domestic currency.
How are Russia and India planning to boost trade?
- Trade Facilitation with Eurasian Economic Union (EEU):
- India and Russia have decided to eliminate both non-tariff and tariff barriers in trade.
- Negotiations are set to begin for a trade deal with the Russia-led Eurasian Economic Union (EEU), comprising Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia. This union represents a significant $5 trillion economy.
- Such a trade deal could potentially ease the flow of Indian products into the EEU markets, enhancing bilateral trade relations.
- Cooperation in Manufacturing Sectors:
- Both countries agreed to collaborate in key manufacturing sectors, including transport engineering, metallurgy, and chemicals.
- Implementation of joint projects in these priority areas is planned, aimed at boosting industrial cooperation and economic ties.
- Reciprocal Trade and Industrial Products:
- Emphasis was placed on expanding reciprocal trade flows, particularly in industrial products, to increase their share in bilateral trade.
- This reflects a mutual commitment to enhancing economic cooperation and trade diversification.
- Migration and Mobility Partnership:
- Discussions also included the negotiation of a migration and mobility partnership agreement between India and Russia.
- This agreement is expected to address issues related to labour mobility and facilitate smoother movement of people between the two countries.
| CARE MCQ | UPSC PYQ |
Q5. Consider the following statements regarding India’s trade dynamics with Russia:
Which of the statements given above are correct? A. 1 and 3 only |
Q. Recently, India signed a deal known as ‘Action Plan for Prioritization and Implementation of Cooperation Areas in the Nuclear Field’ with which of the following countries? (2019)
Answer: (b) |
| Answer 5 C
Explanation
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