Current Affairs Reverse Engineering – CARE (29-07-2024)
| News at a Glance |
| Defence: Multilateral peacekeeping exercise begins in Mongolia |
| International Relations: Maldives resume medical evacuations with India-gifted aircraft |
| South Africa’s new law on climate change |
| Art and Culture: Japan’s Sado mines included in UNESCO World Heritage List |
| Economy: Indexation in calculating LTCG tax |
Multilateral peacekeeping exercise begins in Mongolia
Source: The Hindu
UPSC Syllabus Relevance: GS 3 – Defence, Science and Technology
Context: 21st edition of Khaan Quest
Why in News
- An Indian contingent is part of the 21st edition of Khaan Quest, a multinational peacekeeping exercise, which commenced in Mongolia on July 27.
Overview of the Exercise
- The 21st edition of Khaan Quest, a multinational peacekeeping exercise, commenced on July 27, 2024, in Mongolia.
- The opening ceremony took place at the Five Hills Training Area in Ulaanbaatar, the Mongolian capital.
- This exercise includes participants from 23 countries, totaling around 430 personnel, with representation from nations such as Australia, Canada, China, Japan, Türkiye, the United States, and the United Kingdom.
Indian Contingent Details
- The Indian Army has sent a contingent to participate in Khaan Quest 2024. This contingent includes 40 personnel from a Battalion of the Madras Regiment, along with other members.
- The contingent departed for Mongolia on July 25, 2024, and the exercise will run from July 27 to August 9, 2024.
- Notably, the contingent also includes one woman officer and two women soldiers.
Participation and Leadership
- Ambassador Atul Malhari Gotsurve attended the inaugural ceremony on July 27, 2024.
- He welcomed the Indian troops from the Madras Regiment and extended his best wishes for their participation in the exercise.
Objectives and Training
- The primary objective of Exercise Khaan Quest is to prepare the Indian armed forces for peacekeeping missions within a multinational framework.
- The exercise aims to enhance interoperability and military readiness in peace support operations as outlined in Chapter VII of the United Nations Charter.
Focus Training Components
The exercise emphasizes a high degree of physical fitness, joint planning, and joint tactical drills. Key tactical drills that will be practiced include:
- Establishment of static and mobile checkpoints
- Cordon and search operations
- Patrolling
- Evacuation of civilians from hostile areas
- Counter-improvised explosive device drills
- Combat first aid
- Casualty evacuation
Historical Context and Significance
- Khaan Quest began as a bilateral event between the U.S. and Mongolian armed forces in 2003.
- It evolved into a multinational peacekeeping exercise starting in 2006.
- This evolution has allowed for greater collaboration and exchange of best practices among the participating nations.
Benefits and Outcomes
- The exercise facilitates the development of interoperability, camaraderie, and mutual understanding among soldiers from different countries.
- It also provides an opportunity for the participating nations to share their best practices in tactics, techniques, and procedures for joint operations, thereby enhancing the overall effectiveness of multinational peacekeeping missions.
| CARE MCQ | UPSC PYQ |
Q1. Consider the following statements about Exercise Khaan Quest:
Which of the statements given above is/are correct? A. 1 and 2 only B. 3 only C. 1 and 3 only D. 1, 2, and 3 |
Q. Which of the following statements about ‘Exercise Mitra Shakti-2023’ are correct? (2024)
Select the answer using the code given below: (a) 1, 2 and 3 (b) 1, and 4 (c) 1, 3 and 4 (d) 2, 3 and 4 Ans: d |
| Answer 1- B
Explanation:
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Maldives resume medical evacuations with India-gifted aircraft
Source: The Hindu
UPSC Relevance: GS 2- Neighbourhood first policy, International Relations
Context: Dornier aircraft
Why in News
- Maldives has resumed using a Dornier aircraft and two helicopters gifted by India for medical evacuations.
Background and Recent Developments
- The Maldives has resumed the use of a Dornier aircraft and two helicopters, which were gifted by India, for medical evacuations.
- This resumption follows an understanding reached between the two countries regarding the repatriation of Indian military personnel who were initially operating these aviation platforms.
- President Mohamed Muizzu, known for his pro-China stance, thanked India for enabling the resumption of medical evacuation services with civilian aviation personnel from India.
Transition to Civilian Personnel
- Initially, these aircraft and helicopters were operated by Indian military personnel.
- However, operations were halted after President Muizzu took office in November, advocating for the removal of Indian military personnel from the Maldives.
- Following an agreement between India and Maldives in February, all Indian military personnel returned by May 10.
- India replaced these military personnel with civilians but retained the aviation platforms in the Maldives.
Medical Evacuations and Stationing of Personnel
- Medical evacuation services resumed, and two medical emergencies were handled.
- Civilian personnel from Hindustan Aeronautics Limited (HAL), an Indian public sector aerospace and defense company, are now managing the aviation platforms.
- These civilians are stationed in Hanimaadhoo, Laamu Kadhdhoo, and Seenu Gan, with contracts extending until 2026.
Government Response and Public Criticism
-
- The resumption of these medical evacuations came after the government faced public criticism for not utilizing the Dornier aircraft and helicopters for medical emergencies.
- President Muizzu announced the restart of medical evacuations during a ceremony to mark the 59th Independence Day, acknowledging India’s role in this initiative.
Bilateral Financial Relations
- During the Independence Day ceremony, President Muizzu also addressed ‘Loan Restructuring and Debt Management,’ emphasizing the financial assistance from both China and India.
- India has deferred a USD 50 million loan and provided food quotas for two more years.
- Similarly, China has agreed to defer loans from the Exim Bank for various development projects for five years, with no interest payments during this period.
Dornier aircraft
- The Dornier aircraft, manufactured by Hindustan Aeronautics Limited (HAL), is a twin-turboprop utility aircraft.
- India gifted this aircraft to the Maldives as part of a strategic initiative to enhance bilateral relations and support the Maldives’ capabilities in medical evacuations and other critical missions.
- The Dornier aircraft was operated by Indian military personnel stationed in the Maldives.
- However, operations were halted following the election of President Mohamed Muizzu, who advocated for the removal of Indian military personnel as part of his ‘India Out’ campaign.
Future Trade Agreements
- In addition to these financial arrangements, there are ongoing free trade talks with the U.K., and there is renewed optimism for establishing a free trade agreement with India.
- This highlights the Maldives’ efforts to balance its international relations and economic dependencies between major powers like India and China.
| CARE MCQ | UPSC PYQ | ||||||||||||
Q2. Match the aircraft with their corresponding country of origin:
Select the correct answer using the code given below: a) A-2, B-3, C-1, D-4, E-5 |
Q. Consider the following statements: (2022)
Which of the statements given above is/are correct? (a) 1 and 2 (b) 2 only (c) 2 and 3 (d) 3 only Ans: C |
| Answer 2 – B
Explanation:
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South Africa’s new law on climate change
Source: The Hindu
UPSC Relevance: GS-2 International Relations , GS-3 -Climate Change
Context: South Africa’s Climate Change Law
Why in News
- South Africa’s new legislation marks a significant step in the country’s efforts to curb greenhouse gas emissions and meet international climate commitments under the Paris Agreement.
Climate Change Bill
- The Climate Change Bill in South Africa is a landmark piece of legislation designed to address climate change comprehensively.
- The Climate Change Bill was approved by South Africa’s National Assembly last November.
- South Africa relies on coal as its primary fuel source for electricity generation and is one of the world’s top 15 greenhouse gas (GHG) emitters.
Purpose and Objectives:
- Mitigation and Adaptation: The bill focuses on reducing greenhouse gas emissions and enhancing the ability of communities to adapt to climate impacts.
- Compliance with International Commitments: It aims to align South Africa’s climate actions with its obligations under the Paris Agreement and other international climate frameworks.
Key Provisions of the Bill
- Regulation of Large Industries: The bill imposes mandatory limits on emissions from major fossil-fuel-dependent industries. These industries will need to adopt cleaner technologies and processes to comply with new regulations.
- Monitoring and Reporting: Industries are required to monitor their emissions and report them to the relevant authorities. This ensures transparency and accountability.
- Local-Level Planning: Municipalities and towns must develop and implement climate-adaptation plans. These plans will address local vulnerabilities such as extreme weather events, droughts, and flooding.
- Support and Guidelines: The bill may provide guidelines and support mechanisms to help local governments formulate and execute these plans effectively.
Financial and Strategic Aspects
- Estimated Costs: South Africa estimates needing $8 billion annually by 2030 to meet its climate targets. This funding will support investments in clean energy, infrastructure improvements, and adaptation initiatives.
- Net Zero Emissions: The bill supports South Africa’s goal of achieving net-zero emissions by 2050. This is aligned with the country’s Low-Emission Development Strategy.
- Just Transition: The bill emphasizes a ‘just transition,’ aiming to ensure that the shift from fossil fuels to renewable energy is fair and inclusive, particularly for workers and communities dependent on fossil fuel industries.
International Context:
- Global Climate Goals: The bill is part of South Africa’s commitment to global climate goals, particularly the Paris Agreement, which seeks to limit global warming to well below 2°C, with efforts to keep it below 1.5°C.
Comparison with Other Countries:
- South Africa vs. India: While South Africa is advancing with a specific climate change bill, India’s climate policy is dispersed across various Acts and policies, such as the Environmental Protection Act and Energy Conservation Act. India does not yet have a single, comprehensive climate change law, although it is making progress in emissions intensity reduction and increasing renewable energy capacity.
Significance of this law
- According to an official estimate, net emissions in 2017 were estimated at 512 million tonnes of carbon dioxide equivalent (Mt CO2e), an increase of 14% from 2000.
- In 2022, this fell to 405 Mt CO2e, a 3% fall from 2021, according to Statista.
- It is unclear if these numbers are strictly comparable and if the fall was linked to the worldwide, temporary dip in emissions following COVID-19.
- The energy sector represents roughly 80% of gross emissions, with energy industries (~60% ) and transport (~12%).
- Being an economy which is dependent on agriculture and tourism, South Africa has faced increasing Western pressure to accelerate its transition away from fossil fuel.
Challenges:
- Implementation and Compliance: Ensuring effective implementation and compliance with the new regulations can be challenging, especially for industries that are heavily reliant on fossil fuels.
- Funding and Investment: Securing the necessary $8 billion annually and effectively managing these funds will be crucial for achieving the bill’s goals.
Opportunities:
- Economic Growth: The transition to a low-carbon economy presents opportunities for growth in green sectors and can create new job opportunities.
- Leadership Role: By implementing this bill, South Africa can position itself as a leader in climate action within Africa and globally.
| CARE MCQ | UPSC PYQ |
Q3. Consider the following statements about South Africa’s Climate Change Bill:
Which of the statements given above are correct?
|
Q. “Climate Action Tracker” which monitors the emission reduction Pledges of different countries is a:
a) Database created by coalition of research organisations b) Wing of “International Panel of Climate Change” c) Committee under “United Nations Framework Convention on Climate Change” d) Agency promoted and financed by United Nations Environment Programme and World Bank Ans: a |
| Answer 3 B
Explanation
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Japan’s Sado mines included in UNESCO World Heritage List
Source: The Hindu
UPSC Syllabus Relevance: GS 1 Art and Culture
Context: Sado gold and silver mines, UNESCO World Heritage site
Why in News
- The Sado gold and silver mines, located on Sado Island in Japan, have been recognized by UNESCO as a World Heritage site.
Historical Background
- The Sado gold and silver mines, located on Sado Island in Japan, have been recognized by UNESCO as a World Heritage site.
- These mines are believed to have been operational since the 12th century and continued production until after World War II.
- The mines are notable for their long history and the artisanal mining techniques used, which were advanced for their time compared to the mechanized methods used in Europe.
Controversy and Objections
- The proposal for the World Heritage listing faced opposition from South Korea due to the use of involuntary Korean labor during World War II.
- During the Japanese occupation of Korea, Korean workers were conscripted to work in harsh conditions at the mines.
- South Korea’s objections were based on these historical injustices, including claims of forced labor and discriminatory treatment of Korean workers compared to their Japanese counterparts.
Resolution of Disputes
- South Korea eventually dropped its objections to the listing after Japan agreed to address the historical issues associated with the mines.
- South Korea’s Foreign Ministry stipulated that Japan must faithfully implement recommendations to reflect the full history of the Sado Gold Mine site and take proactive measures to acknowledge the historical context of the labor conditions.
UNESCO’s Decision
- UNESCO confirmed the listing of the Sado gold and silver mines at its committee meeting in New Delhi.
- The bid for the World Heritage status highlighted the archaeological preservation of mining activities and the social and labor organization at the site.
- The decision was influenced by the historical and technical significance of the mines, despite the controversial aspects of their past.
Japanese Reaction
- Japanese Foreign Minister Yoko Kamikawa welcomed the inscription of the Sado mines on the World Heritage List and praised the efforts of the local people involved.
- The recognition was seen as a significant achievement for Japan and a tribute to the historical importance of the mining site.
Context and Inspiration
- The World Heritage effort for the Sado mines was part of a broader trend in Japan, inspired by the successful recognition of other historical sites, such as a silver mine in Shimane region.
- This ongoing effort reflects Japan’s interest in highlighting and preserving its historical and cultural heritage.
Additional UNESCO Listings
- The Beijing Central Axis, which includes a collection of former imperial palaces and gardens in the Chinese capital, was also added to the UNESCO World Heritage List.
- This addition underscores UNESCO’s broader commitment to recognizing and preserving significant cultural and historical sites around the world.
What are UNESCO’s World Heritage Sites?
- A World Heritage Site is a place that is listed by UNESCO for its special cultural or physical significance.
- The list of World Heritage Sites is maintained by the international ‘World Heritage Programme’, administered by the UNESCO World Heritage Committee.
- This is embodied in an international treaty called the Convention concerning the Protection of the World Cultural and Natural Heritage, adopted by UNESCO in 1972.
| CARE MCQ | UPSC PYQ | ||||||||||||
Q4. Match the sites with their corresponding statements:
Select the correct answer using the code given below: a) A-2, B-3, C-1, D-4, E-5 |
Which one of the following National Parks has a climate that varies from tropical to subtropical, temperate and arctic? (2015)
(a) Khangchendzonga National Park Ans: (d) |
| Answer 4 A
Explanation
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Indexation in calculating LTCG tax
Source: Indian Express
UPSC Syllabus Relevance: GS 3- Economy
Context: Indexation in calculating LTCG tax
Why in news
- The changes in the long-term capital gains (LTCG) tax regime have emerged as one of the most contentious decisions announced in the Union Budget for 2024-25.
What is Indexation?
- Indexation is a method used to adjust the purchase price of an asset to account for inflation.
- By increasing the cost of acquisition based on inflation indices, it helps reflect the real value of the asset over time.
- This process effectively neutralizes the impact of inflation, ensuring that the capital gains calculation is more accurate.
- Indexed Cost of Acquisition: Adjusted cost considering inflation, used to compute the capital gains.
- Purpose: To provide a more realistic calculation of gains by reflecting changes in the value of money due to inflation.
Changes in the LTCG Tax Regime
- Removal of Indexation Benefit
- Old Regime: Allowed adjustment of the asset’s cost for inflation, reducing taxable capital gains.
- New Regime (2024-25 Budget): Withdraws the indexation benefit for LTCG on assets like property, gold, and other unlisted assets.
- New Tax Rate
- Old Rate: 20% on LTCG with indexation.
- New Rate: Reduced to 12.5% on LTCG without indexation.
- Special Provision for Assets Purchased Before 2001
- Fair Market Value as of April 1, 2001: Considered as the cost of acquisition for assets bought before this date, aligning with the old regime principle for these assets.
- Rollover Benefits Remain
- Section 54EC Bonds: Investment in these bonds or residential real estate up to specified limits continues to provide LTCG exemptions.
Government’s Justifications and Clarifications
- Simplification of Tax Structure
- Rationale: The new regime simplifies the LTCG tax structure by removing differential tax rates and aligning tax calculations across asset classes.
- Goal: To streamline tax administration and reduce complexity.
- Benefits of New Regime
- Government Claims: In many cases, the new lower tax rate will result in a lower tax burden compared to the previous regime, especially where nominal returns exceed inflation rates.
- Impact on Real Estate Sector
- Clarifications: For properties held longer, the new regime is said to be beneficial if property values have increased significantly (e.g., 1.7 times in 5 years).
Concerns and Criticisms
- Increased Tax Liability
- Long-Term Holdings: Assets held for a longer period might see a higher tax burden without indexation, potentially leading to increased LTCG tax.
- Impact on Secondary Market
- Property Sales: There is concern that the removal of indexation might encourage quicker sales of properties to avoid higher tax liabilities, affecting market dynamics.
- Potential for Cash Transactions
- Tax Avoidance: Fears exist that without indexation, sellers might underreport transaction values to reduce tax liabilities.
- Lack of Grandfathering
- Absence of Transition Period: Critics argue that not extending the indexation benefit to assets purchased before the new regime’s announcement could be unfair. Grandfathering would have allowed the old rules to apply to assets acquired up to a certain date.
- Offset by Lower Tax Rate
- Government’s Counter: The reduction in the LTCG tax rate by 7.5 percentage points is argued to compensate for the removal of indexation, making the new regime favorable in most cases.
| CARE MCQ | UPSC PYQ |
Q5. Consider the following statements about the Long-Term Capital Gains (LTCG) tax regime changes announced in the Union Budget for 2024-25:
Which of the statements given above are correct? A) 1 and 4 only B) 2 and 3 only C) 1 , 2 and 3 only D) 2 and 4 only |
Q. Under which of the following circumstances may ‘capital gains’ arise? [2012]
1. When there is an increase in the sales of a product 2. When there is a natural increase in the value of the property owned 3. When you purchase a painting and there is a growth in its value due to increase in its popularity Select the correct answer using the codes given below: (a) 1 only (b) 2 and 3 only (c) 2 only (d) 1, 2 and 3 Ans: b |
| Answer 5 C
Explanation
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