Current Affairs 12 July 2024

National Affairs

MoS Defence Sanjay Seth Launches GRSE Accelerated Innovation Nurturing Scheme 2024

On July 10, 2024, Minister of State (MoS) Sanjay Seth from the Ministry of Defence (MoD) launched the second edition of the “GRSE Accelerated Innovation Nurturing Scheme (GAINS 2024)” in Kolkata, West Bengal. This scheme, initiated by Garden Reach Shipbuilders & Engineers Limited (GRSE), aims to address shipyard-related issues and promote technological advancements through Indian start-ups. Key figures at the event included GRSE Chairman and Managing Director (CMD) Cmde PR Hari, along with other directors and dignitaries.

About GAINS:

• Launched in 2023, GAINS is a national initiative by GRSE to inspire start-ups and other entities to create innovative solutions.
• It has a two-stage selection process:
  • Stage I: Initiation/Familiarization phase.
  • Stage II: Submission of a detailed Project Report with technical descriptions.
• In 2023, six innovators were selected from 51 applicants for detailed evaluation in Stage II, with GRSE funding these projects from its Research and Development (R&D) budget.

Themes for GAINS 2024:

• Artificial Intelligence (AI) in Shipbuilding
• Renewable/Green Energy and Energy Efficiency
• Efficiency Enhancement in Shipyard Operations

Offerings to Participants:

• Participants can receive up to Rs 5 lakh each for delivering the Project Report in Stage II, based on GRSE’s evaluation.
• Winners may be awarded contracts, and if the developed products are sold to other customers, a revenue-sharing model will be established.

Significance: This initiative aligns with the Government of India’s ‘Make in India’ and ‘Start-up India’ policies, encouraging Micro, Small, and Medium Enterprises (MSMEs) and start-ups to develop innovative solutions in ship design and construction, promoting self-reliance (Atmanirbharta).

Economic Affairs

India Generated 125 Million Jobs between FY14 and FY23: SBI Report

According to the State Bank of India (SBI)’s Economic Research Department (ERD), based on Reserve Bank of India (RBI) data, India generated 125 million jobs between FY14 (2013-14) and FY23 (2022-23), compared to 29 million jobs between FY04 and FY14. This means jobs created during FY14-23 are 4.3 times more than the preceding decade.

Key Findings of the Report:

• Total employment recorded by MSMEs registered with the Ministry of MSME, Government of India (GoI) has surpassed 200 million, indicating robust growth in the MSME sector.
• As of July 4, 2024, nearly 47 million MSMEs registered on the Udyam portal reported 202 million jobs, including 23.2 million jobs by GST-exempted informal micro enterprises, marking a 66% increase from 121 million jobs in July 2023.
• The report compared EPFO data with RBI’s KLEMS data, revealing that the share of EPFO jobs, which primarily covers low-income jobs, has declined from an average of 51% in the five years of FY19-FY23 to 28% in FY24. This indicates that better-paid jobs are becoming more available in the economy.
• The RBI’s KLEMS data aligns with the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2022-23, showing that the total labor force in India is 597 million, almost equivalent to 568 million as per the ASUSE survey for 2022-23.
• The RBI report highlighted that the country added 4.7 million jobs in FY24, more than double the number added in FY23, marking the highest figure in four decades.

International Affairs

India & Taiwan Implement Mutual Recognition Agreement for Organic Products

India and Taiwan have implemented the Mutual Recognition Agreement (MRA) for organic products effective from July 8, 2024. This marks the first bilateral agreement for organic products between the two countries. The announcement was made during the 9th Working Group on Trade Meeting with Taiwan held in New Delhi.

About Taiwan:

• Capital: Taipei
• President: Dr. Lai Ching-te
• Currency: New Taiwan Dollar

State News

Kerala Set to Become the First State in India to Publish PBR

Kerala is set to become the first state in India to publish the People’s Biodiversity Register (PBR) across all local bodies. This dynamic document requires periodic updates on ecosystem details, landscapes, species, and traditional knowledge. The Kerala State Biodiversity Board (KSBB) aims to complete the PBR update in 50% of local bodies by the end of 2024.

Thazhakara Released its 2nd PBR:

• Thazhakara (Alappuzha) has become the first Gram Panchayat (GP) in Kerala to update and publish the second volume of the comprehensive PBR, involving local communities.
• The 261-page document details regional biodiversity, resources, discoveries, traditional knowledge, and climate change impacts.

About People’s Biodiversity Register:

• The PBR serves as a comprehensive record of various aspects of biodiversity, including the conservation of habitats, preservation of land races, folk varieties, cultivars, domesticated stocks and breeds of animals, micro-organisms, and the accumulation of knowledge related to the area’s biological diversity.
• As per the Biological Diversity Act 2002, Biodiversity Management Committees (BMC) are created for promoting conservation, sustainable use, and documentation of biological diversity by local bodies across the country.

About Kerala:

• Chief Minister: Pinarayi Vijayan
• Governor: Arif Mohammed Khan
• Capital: Thiruvananthapuram
• Wildlife Sanctuaries: Peppara Wildlife Sanctuary, Shendurney Wildlife Sanctuary
• Zoological Parks: Thiruvananthapuram Zoological Park, Thrissur Zoo & Museum

International Affairs

UNESCO Announces New World Soil Health Index at International Conference on Soils in Morocco

The United Nations Educational, Scientific and Cultural Organization (UNESCO) announced the New World Soil Health Index at an International Conference on Soils in Agadir, Morocco. This index aims to establish global standards for soil quality assessment. The conference was organized by UNESCO and Morocco’s National Agency for the Development of Oasis and Argan Zones (ANDZOA), bringing together experts and representatives from over 30 countries.

About the World Soil Health Index:

• This index will be a standardized measure to evaluate and compare soil quality across different regions and ecosystems.
• It will help identify patterns indicating degradation or improvement, high-risk locations, and the efficacy of soil management practices.

Pilot Programme:

• UNESCO will also launch a Pilot Programme for the sustainable management of soils and landscapes in around 10 natural sites protected under its Biosphere Reserves (BR) programme.
• The programme aims to evaluate the efficacy of management techniques and ensure the implementation of the most effective methods in other parts of the world.
• Site managers will be encouraged to create innovative soil conservation and land management projects, including an educational component to promote awareness and engage younger generations.

Key Points:

• According to the World Atlas of Desertification (WAD), 75% of soils have already degraded, affecting 3.2 billion people.
• It is predicted that 90% of the planet’s land surface could be degraded by 2050 if the current scenario continues, posing a major threat to global biodiversity and human life.
• In India, 32% of land is degraded, with 25% undergoing desertification due to factors like deforestation and industrial pollution.

About UNESCO:

• Director-General: Audrey Azoulay
• Headquarters: Paris, France
• Established: 1945 (Came into force in 1946)
• Member States: 194 (as of July 2024)

Environment

Ibiza Wall Lizard Reclassified as Endangered on the IUCN Red List

The Ibiza wall lizard (Podarcis pityusensis) has been reclassified as “Endangered” from “Near Threatened” on the International Union for Conservation of Nature (IUCN) Red List of Threatened Species due to a 50% population decline since 2010. The decline is attributed to the invasive horseshoe whip snake (Hemorrhois hippocrepis) in its territory.

Points to Note:

• The Ibiza wall lizard is native to the islands of Ibiza and Formentera in the Balearic Islands and the neighboring rocky islets in Spain.
• It is found in vegetated areas, including cultivated land and gardens near human habitation, and also occurs in rocky areas, especially along the coast, ranging from sea level up to 475 meters above sea level.

Decline of Other Reptiles:

• The Gran Canaria giant lizard (Gallotia stehlini) has shifted to Critically Endangered from Least Concern.
• The Gran Canaria skink (Chalcides sexlineatus) has moved to Endangered from Least Concern.
• These endemic reptile species have seen populations decline by over 50% since 2014 due to the invasive California kingsnake (Lampropeltis californiae), introduced in 1998, which preys on these endemic animals.
• The La Gomera giant lizard (Gallotia bravoana) has improved from Critically Endangered to Endangered in the Canary Islands.

Threats to Ornamental Cacti:

• According to the IUCN, 82% of Ornamental Cacti (Copiapoa Cacti, endemic to Chile’s Atacama coastal desert) are critically endangered due to illegal trade, up from 55% in 2013.
• Illegal trade, driven by demand for ornamental cacti in Europe and Asia, is a major threat.
• Oceanic fog changes threaten the hydration necessary for these slow-growing plants to reproduce.
• Poached Copiapoa can be distinguished from greenhouse-grown plants by their grey tone and protective dusty bloom, while greenhouse-grown cacti are greener.

Banking & Finance

Muthoot Finance Selected for FATF Mutual Evaluation Report 2023-24

Muthoot Finance is the only Indian Non-Banking Financial Company (NBFC) selected for the Financial Action Task Force’s (FATF) Mutual Evaluation Report (MER) for the year 2023-24. Muthoot Finance represented India’s NBFC segment at the FATF’s onsite evaluation held in New Delhi in November 2023.

About Mutual Evaluation Report (MER):

• The MER is an assessment of a country’s measures to combat money laundering and the financing of terrorism and proliferation of weapons of mass destruction.
• Conducted by FATF, it provides an in-depth analysis and description of a country’s anti-money laundering and counter-terrorist financing system and offers key recommendations to strengthen its system.
• The evaluation is based on various parameters, including actions taken by Indian law enforcement agencies, leading industry bodies, and institutions like banks and NBFCs to combat money laundering, terrorism financing, and proliferation financing.

Additional Info:

• The MER of India was adopted during the 6th and final Plenary session of the FATF under the Presidency of T. Raja Kumar, held in Singapore from June 26 to June 28, 2024.

About Financial Task Force (FATF):

• It is an intergovernmental organization established in 1989, acting as an international watchdog to combat money laundering, terrorism financing, and other related threats to maintain the integrity of the international financial system. India became a member in 2010.
• President: Elisa de Anda Madrazo (Mexico)
• Member nations: 39
• Headquarters: Paris, France

About Muthoot Finance:

• Managing Director: George Alexander Muthoot
• Headquarters: Kochi, Kerala

Banking & Finance

RBI’s Financial Inclusion Index (FI-Index) Increases to 64.2 in FY24

On July 9, 2024, the Reserve Bank of India (RBI) released its Financial Inclusion Index (FI-Index), which increased to 64.2 in FY24 (March 2024) from 60.1 in FY23 (March 2023). The FI-Index captures the extent of financial inclusion across the country.

Background:

• The RBI published the first FI-Index in August 2021 for the fiscal year ending in March 2021.
• The FI-Index for FY21 was 53.9, compared to 43.4 for FY17.
• The FI-Index is published annually in July for the financial year ending in March.

About FI-Index:

• It is a comprehensive index containing details of banking, investments, insurance, postal, and the pension sector in consultation with the government and respective sector-wise regulators. It has no base year.
• The index captures information on various factors of financial inclusion in a single value ranging from 0 to 100. A value of 0 represents complete financial exclusion, while 100 means full financial inclusion.
• The index comprises three main parameters with variant weightage: Access (35%), Usage (45%), and Quality (20%). Each parameter consists of various dimensions, computed based on several indicators.
• The index reflects the combined efforts of stakeholders over the years towards financial inclusion.

About Reserve Bank of India (RBI):

• Governor: Shaktikanta Das (25th Governor of RBI)
• Headquarters: Mumbai, Maharashtra
• Established: April 1, 1935

Appointments & Resignations

16th Finance Commission Constitutes 5-Member Advisory Council; Poonam Gupta Named as its Convenor

On July 9, 2024, the 16th Finance Commission (FC), headed by Arvind Panagariya, established an advisory council comprising five eminent members. This council is tasked with advising the Commission on various Terms of Reference (ToR) and related subjects, enhancing its understanding and broadening its scope. Dr. Poonam Gupta, Director General (DG) of the National Council of Applied Economic Research (NCAER), has been appointed as the convenor of the Advisory Council.

Other Members:

• D.K. Srivastava: Chief Policy Advisor at Ernst and Young (EY), London, UK.
• Neelkanth Mishra: Chief Economist at Axis Bank, Mumbai, Maharashtra.
• Pranjul Bhandari: Chief India Economist at HSBC Securities & Capital Markets (India) Private Limited, Mumbai, Maharashtra.
• Rahul Bajoria: Managing Director and Head of Emerging Markets (EM) Asia (ex-China) Economics at Barclays, UK.

Role of the Advisory Council:

• Assisting the Commission in preparing papers and research studies.
• Monitoring and assessing studies commissioned by the FC.
• Enhancing the Commission’s understanding of the ToR issues.
• Seeking national and international best practices on fiscal devolution.
• Improving the quality, reach, and enforcement of the Commission’s recommendations.
• Advising on the distribution of tax proceeds, principles governing grants-in-aid of state revenues, and measures to augment state funds to support panchayats and municipalities.

About Finance Commission (FC):

• The Finance Commission is constituted by the President of India under Article 280 of the Constitution.
• The 1st FC was appointed in 1951 for the period 1952-57 by the President of India and was chaired by K. C. Niyogi.
• The 16th Finance Commission was constituted on December 31, 2023, with Arvind Panagariya as the chairman and Ritvik Ranjanam Pandey as the secretary. The commission has three full-time members and one part-time member.
• The Commission has been requested to make its recommendations available by October 31, 2025, covering an award period of five years commencing April 1, 2026.

ACC Approves Appointment of 8 ERs at Public Sector General Insurance Companies

The Appointments Committee of the Cabinet (ACC), headed by Prime Minister Narendra Modi, has approved the appointment of eight Executive Directors (EDs) in various Public Sector General Insurance Companies (PSGICs) to bolster leadership within these institutions. This decision aligns with the Union Government’s ongoing efforts to enhance the efficiency and performance of Public Sector Undertakings (PSUs) in the insurance sector. The appointed executives have tenures ranging from less than a year to four years.

New Appointments:

• United India Insurance Company Limited (UIICL):
  • Sunita Gupta, currently serving as General Manager (GM) at Oriental Insurance Company Ltd (OICL), has been appointed as Executive Director (ED) at UIICL.
• National Insurance Company Limited (NICL):
  • T. Babu Paul, currently GM at NICL, will now take on the role of ED.
  • Prasad C.G., currently GM at New India Assurance Company Ltd (NIACL), has been appointed as ED at NICL.
• Oriental Insurance Company Limited (OICL):
  • Rashmi Bajpai, currently GM at OICL, has been promoted to the position of ED, OICL.
  • Amit Mishra, currently GM at NIACL, has been named ED at OICL.
• General Insurance Corporation of India (GIC Re):
  • Hitesh Ramesh Chandra Joshi, currently GM at GIC Re, has been promoted to ED in the same company.
  • Radhika C.S., currently GM at UIICL, has been appointed as ED at GIC Re.
• Agriculture Insurance Company of India Limited (AIC):
  • Dasarathi Singh, currently GM at AIC, has been elevated to the role of ED in the same company.

Former WHO Chief Scientist Soumya Swaminathan Appointed as Principal Advisor for NTEP

Professor (Dr.) Soumya Swaminathan, the former World Health Organisation (WHO)’s Chief Scientist, has been appointed as the Principal Advisor at the Union Ministry of Health and Family Welfare (MoHFW) for the National Tuberculosis Elimination Programme (NTEP). Her appointment is on a pro bono basis.

Role as Principal Advisor:

• Providing technical advice on the overall strategy for achieving program goals.
• Suggesting policy directions and necessary course corrections for optimal results.
• Advising on research strategy.
• Assisting in the formation of expert groups with top talent globally.
• Supporting MoHFW, state officials, and development partners in assessing the impact of the programme.

Previous Roles:

• Dr. Soumya Swaminathan has served as the Director General (DG) of the Indian Council of Medical Research (ICMR), New Delhi, from 2015 to 2017.

Environment

‘Uropeltis caudomaculata’: New Shield-Tail Snake Species Discovered In Western Ghats

A team of researchers from Tamil Nadu (TN), Kerala, and the United Kingdom (UK) have discovered a new species of shield-tail snake, ‘Uropeltis caudomaculata,’ in the Meghamalai-Munnar hill region of the Western Ghats. The discovery was published in the international journal Zootaxa, New Zealand-based Magnolia Press.

About Uropeltis caudomaculata:

• Named for the yellow spot on each side of the base of its tail, unlike similar species like Uropeltis pulney