ASEAN

Read More...

India-US 2+2 Ministerial Dialogue

For Prelims: India and US relations, India-US 2+2 Dialogue, United Nations, G-20, Association of Southeast Asian Nations (ASEAN), QUAD.

For Mains: India-US 2+2 Dialogue, Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Source: PIB

Why in News?

Recently, 5^th Edition of the India-US 2+2 Ministerial Dialogue took place, where both countries highlighted progress in various areas of bilateral cooperation including defense, semiconductors, emerging technology, space, health etc. 

• The 2+2 meetings have been held annually with the US leaders since 2018.

What is a 2+2 Meeting?

• About:
  • The 2+2 meetings signify the participation of two high-level representatives, Ministers holding Foreign and Defence portfolios, from each of the two countries who aim to enhance the scope of dialogue between them.
  • Having such a mechanism enables the partners to better understand and appreciate each other’s strategic concerns and sensitivities taking into account political factors on both sides, in order to build a stronger, more integrated strategic relationship in a rapidly changing global environment.
• India’s 2+2 Partners:
  • The US is India’s oldest and most important 2+2 talks partner.
  • Additionally, India has held 2+2 meetings with ministers from Australia, Japan, the United Kingdom and Russia.

What are the Key Highlights of the India-US 2+2 Dialogue?

• Defense Deals:
  • Both nations aimed to collaboratively co-develop and co-produce defence systems, fostering a deeper partnership in defence technologies.
  • India and the U.S. are currently negotiating deals for the purchase of MQ-9B unmanned aerial vehicles and the licensed manufacturer of General Electric's F-414 jet engine in India.
    • These deals align with India's goal of enhancing its defence capabilities.
  • The Ministers looked forward to the finalisation of a Security of Supply Arrangement (SOSA), a key priority in the Roadmap, which will further integrate the defence industrial ecosystems of both countries while strengthening supply chain resilience
• Infantry Combat Vehicles and Future Plans:
  • Both sides discussed infantry combat vehicles, particularly the Stryker, as part of the defence industry cooperation roadmap.
  • Cooperation in infantry combat systems will be formalized once the Indian military's needs are finalized, and a concrete production plan is established through collaboration between Indian and U.S. industry and military teams.
• Advancements in Defence Technology Cooperation:
  • Both sides reviewed the progress of the India-U.S. Defence Industrial Ecosystem, INDUS-X, launched in June 2023, aimed at expanding the strategic technology partnership and defence industrial cooperation.
• Membership in Combined Maritime Forces:
  • India's decision to become a full member of the Combined Maritime Forces, a multilateral construct headquartered in Bahrain, was welcomed by the Defense Secretary of the US.
    • This move signifies India's commitment to regional maritime security.
• Maritime Security:
  • Both nations shared a focus on maritime security in the Indo-Pacific region, acknowledging the importance of safeguarding vital sea lanes and promoting stability.
• Space and Semiconductor Collaboration:
  • The Ministers welcomed the rapid progress made under the India-US Initiative on Critical and Emerging Technology (iCET) to build science and technology and critical technology value chain collaborations in both the commercial and defence sectors.
  • They called on the respective governments, academic, research, and corporate sectors to continue to proactively build these strategic partnerships in emerging technologies like quantum, telecom, biotechnology, Artificial Intelligence, and semiconductors to accelerate global innovation and benefit the economies of both countries.
  • They welcomed the early meeting of the Strategic Trade Dialogue Monitoring Mechanism.
• Discussion on Chinese Aggression:
  • The US emphasized that the bilateral relationship extends beyond addressing the challenges posed by China.
• India-Canada Row:
  • The ongoing row between India and Canada, particularly concerning security concerns related to a Khalistan separatist based in the US and Canada, was addressed.
  • India communicated its position on core security concerns to its partners.
• Israel-Hamas War:
  • India reiterated its stance on the Israel-Hamas Conflict, advocating for a two-state solution (Two countries officially demarcated and Internationally Recognised) and the early resumption of dialogue.
  • Humanitarian assistance has been provided, emphasizing adherence to international humanitarian law and the condemnation of civilian casualties.

How have been India’s Relations with the US?

• About:
  • The U.S.-India strategic partnership is founded on shared values including a commitment to democracy and upholding the rules-based international system.
  • Both have shared interests in promoting global security, stability, and economic prosperity through trade, investment, and connectivity.
• Economic Relations:
  • The U.S. has emerged as India's biggest trading partner in 2022-23 on account of increasing economic ties between the two countries.
  • The bilateral trade between India and the U.S. has increased by 7.65% to USD 128.55 in 2022-23 as against USD 119.5 billion in 2021-22.
    • Exports to the U.S. rose by 2.81% to USD 78.31 billion in 2022-23 as against USD 76.18 billion in 2021-22, while imports grew by about 16% to USD 50.24 billion.
• International Cooperations:
  • India and the United States cooperate closely at multilateral organizations, including the United Nations, G-20, Association of Southeast Asian Nations (ASEAN) Regional Forum, International Monetary Fund, World Bank, and World Trade Organization.
  • The United States welcomed India joining the UN Security Council in 2021 for a two-year term and supports a reformed UN Security Council that includes India as a permanent member.
  • Together with Australia and Japan, the United States and India convene as the Quad to promote a free and open Indo-Pacific and provide tangible benefits to the region.
  • India is also one of twelve countries partnering with the United States on the Indo-Pacific Economic Framework for Prosperity (IPEF).
  • India is a member of the Indian Ocean Rim Association (IORA), at which the United States is a dialogue partner.
  • In 2021, the United States joined the International Solar Alliance headquartered in India, and in 2022 the United States Agency for International Development (USAID).
• Defence Pacts:
  • India has now signed all four foundational agreements with the US; the Logistics Exchange Memorandum of Agreement (LEMOA)  in 2016, the Communications Compatibility and Security Agreement (COMCASA) in 2018, and the Basic Exchange and Cooperation Agreement for Geo-Spatial cooperation (BECA) in 2020. 
    • While the General Security of Military Information Agreement (GSOMIA) was signed a long time ago, an extension to it, the Industrial Security Annex (ISA), was signed in 2019.

What are the Major Challenges between India and the US?

• US Criticism of India’s Foreign Policy:
  • If the Indian elite has long seen the world through the lens of non-alignment, alliance relationships have been at the heart of US’ foreign policy since the Second World War.
    • India’s policy of nonalignment especially during the Cold War has always been a point of concern for the West, especially the US.
  • After the 9/11 attacks, the US asked India to dispatch troops to Afghanistan; the Indian military vetoed the request.
    • When the US invaded Iraq in 2003, even then India’s erstwhile PM withheld military support.
  • Even today, India refuses to toe the American line on the Russian-Ukraine war and its import of cheap Russian oil continues to break records.
    • Pro-US voices have often been raised demanding India to get “on the right side of history”.
• India’s Engagement with US Adversaries:
  • India has criticised the US decision to block Iranian and Venezuelan oil from the open market.
  • India has actively worked to bring Iran into the SCO (Shanghai Cooperation Organization).
  • India has also held 18 rounds of talks with China to resolve the border dispute besides remaining a key participant in the China-backed Asian Infrastructure Investment Bank.
• US’ Criticism of India’s Democracy:
  • Various US organisations and foundations, from time to time, with the tacit support of some Congressmen and Senators, come out with reports questioning the present state of democratic discourse, press and religious freedom and condition of the minorities in India.
    • Some of them include the International Religious Freedom Report 2023 and the Human Rights Report on India 2021 by the US State Department.
• Economic Tensions:
  • The Atmanirbhar Bharat Campaign has exacerbated the view in the US that India is increasingly becoming a protectionist closed market economy.
  • Effective in June 2019, the USA decided to withdraw duty-free benefits to Indian exporters under the GSP programme affecting India's export-oriented sectors such as pharma, textiles, agri products and automotive parts.

Way Forward

• The partnership between the two countries is critical for ensuring a free, open, and rules-bound Indo-Pacific region.
• The unparalleled Demographic Dividend provides enormous opportunities for the US and Indian firms for technology transfer, manufacturing, trade and investment.
• India is emerging as a leading player in an international system that is undergoing an unprecedented transformation. It shall use its present situation to explore opportunities to further its vital interests.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Q. ‘What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self-esteem and ambitions’. Explain with suitable examples. (2019)

Colours of Domesticated Silkworm Cocoons

For Prelims: Silk, Carotenoids and Flavonoids, Silk Samagra, Central Silk Board

For Mains: Sericulture in India, Economics of Animal-Rearing

Source: TH

Why in News?

Silk, often referred to as the “queen of fibres,” has been valued for its beauty and luxury for ages. Researchers have revealed the genetic factors behind the cocoon colors and adaptations of silk-producing insects, and how they have transformed the silk industry.

What is Cocoon in Silk?

• A cocoon in silk is a protective layer of silk thread that is spun by a silkworm around itself.
  • The silk thread is very fine, strong, and lustrous. The cocoon usually has an oval or round shape.
• The cocoon can be used to make silk fabric by unwinding the thread and weaving it.

What Genetic Insights Does Silk Moth Domestication Uncover?

• Evolution of Silk Moth Domestication:
  • It is produced by the cocoons of the domesticated silk moth (Bombyx mori), which was derived from the wild silk moth (Bombyx mandarina) more than 5,000 years ago in China.
    • While the domesticated silk moth thrives worldwide, the ancestral moth still roams in regions like China, Korea, Japan, and far-eastern Russia.
• Types of Silk:
  • Wild Silk (Non-mulberry Silks):
    • Wild’ silks, which include the muga, tasar, and eri silks are obtained from other moth species: namely, Antheraea assama, Antheraea mylitta, and Samia cynthia ricini.
    • These moths survive relatively independently of human care, and their caterpillars forage on a wider variety of trees.
    • Non-mulberry silks comprise about 30% of all silk produced in India.
      • These silks have shorter, coarser, and harder threads compared to the long, fine, and smooth threads of the mulberry silks.
  • Mulberry Silk:
    • The most common and widely produced type of silk, accounting for about 90% of global silk production.
      • Derived from the cocoons of the domesticated mulberry silkworm (Bombyx mori), which feeds exclusively on mulberry leaves.
    • Has long, smooth, and lustrous fibers that can be woven or knitted into various fabrics with different textures and finishes.
    • Suitable for a wide range of applications, such as clothing, bedding, curtains, upholstery, and accessories.
• Cocoon Colours:
  • The ancestral mulberry moth makes (uniform) brown-yellow cocoons.
    • In contrast, domesticated silk moth cocoons come in an eye-catching palette of yellow-red, gold, flesh, pink, pale green, deep green or white.
  • The pigments that colour the silkworm cocoons are derived from chemical compounds called carotenoids and flavonoids, which are made by the mulberry leaves that the silkworms feed on.
    • The silkworms absorb the carotenoids and flavonoids and transport them to the silk glands, where they are taken up and bound to the silk protein.
    • The amount and type of pigments in the silk glands determine the colour and intensity of the silk threads, which are then extruded by the silkworms to form the cocoons.
  • The pigments that coloured the cocoons are water-soluble, so they gradually fade away.
    • The coloured silks we see in the market are instead produced by using acid dyes.
  • Mutations in genes responsible for carotenoids and flavonoids cause differently colored cocoons, providing insight into the molecular basis of silk diversity.

What is the Status of India’s Silk Industry?

• Silk Production:
  • India stands as the world's second-largest producer of raw silk after China.
  • In the fiscal year 2020-21, the country produced a substantial 33,739 MT of raw silk.
    • India boasts a diverse range of silk types, including Mulberry, Tasar, Muga, and Eri. The variations arise from the distinct feeding habits of the silkworms.
  • The silk industry stands as one of India's largest foreign exchange earners, contributing significantly to the country's economic landscape.
• Leading States:
  • In the fiscal year 2021-22, Karnataka emerged as the leading state in India's silk production, making a substantial contribution of 32%.
    • Other significant contributors include Andhra Pradesh (25%), along with states like Assam, Bihar, Gujarat, and West Bengal, all playing pivotal roles in the thriving silk industry.
• Top Importers:
  • The country exports to more than 30 countries in the world. Some of the top importers are the USA, UAE, China, UK, Australia, and Germany.
• Workforce:
  • The country's sericulture industry employs around 9.76 million people in rural and semi-urban areas. The sericulture activities in India are spread across 52,360 villages.
• Central Silk Board (CSB):
  • It is a statutory body, established in 1948 by an Act of Parliament, under the administrative control of the Ministry of Textiles, Government of India.
    • Its headquarters is located in Bangalore.
  • The CSB is responsible for the overall development and promotion of the sericulture and silk industry in India, through retesearch, extension, training, quality control, and marketing support.
• Initiative:
  • Silk Samagra.
  • North East Region Textile Promotion Scheme (NERTPS):
    • The objective of this scheme is the revival, expansion, and diversification of sericulture in the North Eastern States with a special focus on Eri and Muga silks.

Massive Aadhaar Data Breach

For Prelims: Massive Aadhaar Data Breach, Aadhaar, UIDAI, Personally Identifiable Information (PII), Cyber Attack, Dark Web, Deep Web, IT Rules (2021).

For Mains: Massive Aadhaar Data Breach, Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Source: TH

Why in News?

Recently, Resecurity, an American cyber security company, said that Personally Identifiable Information (PII) of 815 million Indian citizens, including Aadhaar numbers and passport details, were being sold on the Dark Web.

• The threat actors selling the data claimed it was sourced from the Indian Council of Medical Research (ICMR), which has been subjected to numerous Cyber-Attack attempts with 6,000 incidents being reported in 2022.

What is the Dark Web?

• The dark web refers to sites that are not indexed and only accessible via specialized web browsers. Significantly smaller than the tiny surface web, the dark web is considered a part of the deep web.
  • Using our ocean and iceberg visual, the dark web would be the bottom tip of the submerged iceberg.
• The dark web is intentionally hidden and can only be accessed with special software, configurations, or authorization, making it a realm of the internet that is not easily accessible to the average user.

What is Personally Identifiable Information and How Did Threat Actors Gain Access to Sensitive Data ?

• About PII:
  • PII is information that when used alone or with other relevant data, can identify an individual.
  • PII may be direct identifiers like passport information or quasi-identifiers that can be combined with other information to successfully recognise an individual.
• Access to Sensitive Data:
  • Threat actors selling stolen data on the dark web declined to specify how they obtained the data without which any effort to identify the source of the data leak would be speculative.
  • Lucius, the second threat actor found selling data online claimed to have access to a 1.8 terabyte data leak impacting an unnamed “India internal law enforcement agency”. However, the claim is yet to be authenticated.
  • Data samples observed by researchers contain multiple references to UIDAI (Unique Identification Authority of India) and Aadhaar cards, as well as voter ID cards. It is also possible that threat actors successfully breached a third-party aggregating these details.
• Threats Arising from Leaked Information:
  • India being one of the fastest growing economies of the world, ranked 4th globally in all malware detection in the first half of 2023, according to a survey from Resecurity.
  • The unrest in West Asia and increase in attacks by threat actors capitalizing on the chaos exposed personally identifiable data significantly, increasing the risk of digital identity theft.
  • Threat actors leverage stolen identity information to commit online-banking theft, tax frauds, and other cyber-enabled financial crimes.

What are the Previous Instances of Data Breach?

• Aadhaar data leaks were also reported in 2018, 2019, and 2022, with three instances of large-scale leaks being reported, including one in which farmer’s data stored on the PM Kisan website was made available on the dark web.
• Earlier in 2023, reports emerged that a bot on the messaging platform Telegram was returning personal data of Indian citizens who registered with the Covid-19 vaccine intelligence network (CoWIN) portal.

What are the Provisions Related to Data Governance in India?

• IT amendment Act,2008:
  • Existing Privacy Provisions India has some privacy provisions in place under the IT (Amendment) Act, 2008.
  • However, these provisions are largely specific to certain situations, such as restrictions on publishing the names of juveniles and rape victims in the media.
• Justice K. S. Puttaswamy (Retd) vs Union of India 2017:
  • In August 2017, a nine-judge bench of the Supreme Court in Justice K. S. Puttaswamy (Retd) Vs Union of India unanimously held that Indians have a constitutionally protected fundamental right to privacy that is an intrinsic part of life and liberty under Article 21.
• B.N. Srikrishna Committee 2017:
  • Government appointed a committee of experts for Data protection under the chairmanship of Justice B N Srikrishna in August 2017, that submitted its report in July 2018 along with a draft Data Protection Bill.
  • The Report has a wide range of recommendations to strengthen privacy law in India including restrictions on processing and collection of data, Data Protection Authority, right to be forgotten, data localisation etc.
• Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021:
  • IT Rules (2021) mandate social media platforms to exercise greater diligence with respect to the content on their platforms.
• Proposal of ‘Digital India Act’,2023 to replace IT act,2000:
  •  IT Act was originally designed only to protect e-commerce transactions and define cybercrime offenses, it did not deal with the nuances of the current  cybersecurity  landscape adequately nor did it address data privacy rights.
  • The new Digital India Act envisages to act as catalysts for the Indian economy by enabling more innovation, more startups, and at the same time protecting the citizens of India in terms of safety, trust, and accountability.

Way Forward

• The UIDAI has recommended using a "masked Aadhaar" that displays only the last four digits of the Aadhaar number, enhancing privacy and security.
• Moreover, to ensure accountability, the Aadhaar Act should be amended to reintroduce independent oversight through a high-powered "Identity Review Committee."
• The government should limit mandatory Aadhaar usage to permissible purposes and provide alternative authentication methods when Aadhaar authentication fails.
• Users can further protect their Aadhaar data by locking it through the UIDAI website or mobile app, rendering biometric information useless even if compromised.

Legal Insight: Expanding Aadhar to Private Entities

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Q. Consider the following statements: (2018)

1. Aadhaar card can be used as a proof of citizenship or domicile.
2. Once issued, Aadhaar number cannot be deactivated or omitted by the Issuing Authority.

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: (d)

Exp:

• The Aadhaar platform helps service providers authenticate identity of residents electronically, in a safe and quick manner, making service delivery more cost effective and efficient. According to the GoI and UIDAI, Aadhaar is not proof of citizenship.
• However, UIDAI has also published a set of contingencies when the Aadhaar issued by it is liable for rejection. An Aadhaar with mixed or anomalous biometric information or multiple names in a single name (like Urf or Alias) can be deactivated. Aadhaar can also get deactivated upon non-usage of the same for three consecutive years.

With reference to “Blockchain Technology”, consider the following statements: (2020)

1. It is a public ledger that everyone can inspect, but which no single user controls.
2. The structure and design of the blockchain is such that all the data in it are about cryptocurrency only.
3. Applications that depend on basic features of blockchain can be developed without anybody’s permission.

Which of the statements given above is/are correct?

(a) 1 only
(b) 1 and 2 only
(c) 2 only
(d) 1 and 3 only

Ans: (d)

---

Mains

Q 1. Two parallel-run schemes of the Government, viz the Adhaar Card and National Population Register (NPR), one as voluntary and the other as compulsory, have led to debates at national levels and also litigations. On merits, discuss whether or not both schemes need to run concurrently. Analyze the potential of the schemes to achieve developmental benefits and equitable growth. (2014)

Shift From Physical to Digital Gold

For Prelims: Shift From Physical to Digital Gold, Gold Exchange-Traded Funds (ETFs), Gold Mutual Funds and Sovereign Gold Bonds, Real Estate, Gold Monetisation Scheme.

For Mains: Shift From Physical to Digital Gold, Investment models, Capital Market

Source: IE

Why in News?

• In recent Years, Gold Exchange-Traded Funds (ETFs), Gold Mutual Funds and Sovereign Gold Bonds have become very popular over Physical gold, which comes with its own challenges, especially regarding its storage and safety.

How is Gold Linked With Indian Households?

• Weightage of Gold with Indian Households:
  • As per Jefferies report, 15.5% of Total Indian Household Assets as of March 2023 are in Gold.
    • Jefferies, a US based investment banking and capital markets firm, provides insight, expertise and execution to investors, companies and governments in the Americas, Europe and the Middle East and Asia.
  • Gold’s share is second only to Real Estate which accounts for 50.7%.
    • Bank deposits (14%), Insurance funds (5.9%), Provident & Pension funds (5.8%), Equities (4.7%) and Cash (3.4%) make up the rest.
  • With a Quantum Mutual Fund study concluding that a 10-15% portfolio allocation to gold is ideal from a risk-return perspective, it seems that Indians, with their affinity for gold, have got it right.
    • The 10-15% allocation allows investors to lower risk without impacting overall portfolio returns.

• Shift from Physical to Digital Avenues:
  • Traditionally Indians have saved in gold by buying small jewellery or gold bars and coins which are later converted to larger wearables at opportune times like weddings or liquidated in times of financial needs.
    • While bars and coins are very liquid, their purity is not always guaranteed. They have storage costs and come with issues of retailer mark-ups and lower resale value.
  • But with changing demographics, greater access to banking facilities, explosion of the digital economy, and increasing awareness about financial investment avenues, consumer preference is slowly moving away from physical gold to digital avenues.
  • Due to which Gold ETFs and SGBs as digital gold investment avenues in the country today are seeing growing acceptance.

What are Digital Avenues for Gold Investment?

• Gold ETF:
  • About: Gold ETF, which aims to track the domestic physical gold price, are passive investment instruments that are based on gold prices and invest in gold bullion.
    • Gold ETFs are units representing physical gold which may be in paper or dematerialised form.
      • One gold ETF unit is equal to 1 gram of gold and is backed by physical gold of very high purity.
      • They combine the flexibility of stock investment and the simplicity of gold investments.
  • Advantages: There is complete transparency on the holdings of an ETF.
    • Gold ETFs have much lower expenses as compared to physical gold investments.
    • No wealth tax, no security transaction tax, no VAT and no sales tax is levied on ETFs.
    • There is no fear of theft as ETFs are safe and secure as units held in the Demat Account of the holder.
  • The Shift to Digital Gold: The number of investors in Gold ETFs has increased from close to 4.61 lakh in January 2020 to 48.06 lakh in September 2023.
• Gold Mutual Funds:
  • Gold mutual funds are professionally managed funds that function by pooling money from multiple investors to invest in a variety of gold-related assets, such as gold mining stocks, bullion, and mining companies.
  • Like Gold ETFs, they allow investors’ exposure to the gold market without having to invest in physical gold.
• Sovereign Gold Bonds:
  • About: The first SGB scheme was launched by the Government in November 2015, under Gold Monetisation Scheme with an objective to reduce the demand for physical gold and shift a part of the domestic savings - used for the purchase of gold - into financial savings.
  • Key Details:

Item	Details
Issuance	Issued by the Reserve Bank of India on behalf of the Government of India.
Eligibility	SGBs will be restricted for sale to resident individuals, HUFs (Hindu Undivided Family), Trusts, Universities and Charitable Institutions.
Tenor	The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year.
Minimum size	Minimum permissible investment will be One gram of gold.
Maximum limit	The maximum limit of subscription shall be 4 Kg for individuals, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time.
Joint holder	In case of joint holding, the investment limit of 4 Kg will be applied to the first applicant only.
Issue price	Price of SGB will be fixed in Indian Rupees on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited.
Interest rate	The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value (face value or stated value).
Collateral	The SGBs can be used as collateral for loans.
Tax treatment	The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961. The capital gains tax arising on redemption of SGB to an individual is exempted.
Tradability	SGBs shall be eligible for trading.
SLR eligibility	SGBs obtained by banks through the pledge process will be considered as part of their Statutory Liquidity Ratio requirements.

• Digital Gold:
  • This is one of the types of Digital Gold investment where one can buy gold in small denominations online.
  • It allows investors to own a portion of physical gold that is stored in secure vaults.
  • This investment also allows an investor exposure to the gold market without having to worry about the challenges that accompany physical gold investments.
  • Many digital payment platforms and investment apps facilitate investments in Digital Gold.

What is an Exchange Traded Fund (ETF)?

• An Exchange-Traded Fund (ETF) is a basket of securities that trade on an exchange, just like a stock.
• ETF reflects the composition of an Index, like BSE Sensex. Its trading value is based on the Net Asset Value (NAV) of the underlying stocks (such as shares) that it represents.
• ETF share prices fluctuate all day as it is bought and sold. This is different from Mutual Funds that only trade once a day after the market closes.
• An ETF can own hundreds or thousands of stocks across various industries, or it could be isolated to one particular industry or sector.
• Bond ETFs are a type of ETFs which may include government bonds, corporate bonds, and state and local bonds—called municipal bonds.
  • A bond is an instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).
• Besides being cost efficient, ETFs offer a diversified investment portfolio to investors.

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Q.1 Indian Government Bond Yields are influenced by which of the following? (2021)

1. Actions of the United States Federal Reserve
2. Actions of the Reserve Bank of India
3. Inflation and short-term interest rates

Select the correct answer using the code given below.

(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3

Ans: (d)

Explanation:

• Bond is an instrument to borrow money. A bond could be issued by a country’s government or by a company to raise funds.
• Bond yield is the return an investor realizes on a bond. The mathematical formula for calculating yield is the annual coupon rate divided by the current market price of the bond.
• Movements in yields depend on trends in interest rates, it can result in capital gains or losses for investors.
• A rise in bond yields in the market will bring the price of the bond down.
• A drop in bond yield would benefit the investor as the price of the bond will rise, generating capital gains.
• Fed tapering is the gradual reduction in the bond buying program of the US Federal Reserve. So, any actions of the United States Federal Reserve impact the bond yield in India. Hence, 1 is correct.
• The actions of the RBI plays a crucial role in determining the yield of government bonds. The sovereign yield curve has a special significance for monetary policy in influencing a wide array of interest rates in the economy. Hence, 2 is correct.
• Inflation and short-term interest rates also influence the yield of government bonds. Hence, 3 is correct.
• Therefore, option (d) is the correct answer.

Q.2 With reference to ‘IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/ are correct? (2016)

1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
2. They are rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below:

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Ans: (c)

Explanation:

• The World Bank Group, which is a vital source of financial and technical assistance to developing countries, consists of five distinct yet complementary organizations, viz.,
• International Bank for Reconstruction and Development (IBRD),
• International Development Association (IDA),
• International Finance Corporation (IFC), hence, statement 1 is correct.
• Multilateral Investment Guarantee Agency (MIGA),
• International Centre for Settlement of Investment Disputes (ICSID).
• Masala Bonds are rupee-denominated borrowings issued by Indian entities in overseas markets. Masala means ‘spices’ and the term was used by International Finance Corporation (IFC) to popularise the culture and cuisine of India on foreign platforms. The objective of Masala Bonds is to fund infrastructure projects in India, fuel internal growth via borrowings and internationalize the Indian currency. Hence, statement 2 is correct.
• Therefore, option (c) is the correct answer.

Q.3 What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’? (2016)

1. To bring the idle gold lying with Indian households into the economy.
2. To promote FDI in the gold and jewellery sector.
3. To reduce India’s dependence on gold imports.

Select the correct answer using the code given below:

(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Ans: (c)

Rising Scientific Misconduct in India

For Prelims: Scientific Misconduct, India Research Watchdog, Retractions in Indian research, Plagiarism, Misconduct involving experimental techniques, and Fraud.

For Mains: Scientific Misconduct, Ethics and Human Interface: Essence, determinants, and consequences of Ethics in human actions.

Source: TH

Why in News?

• According to a survey by India Research Watchdog the escalating number of retractions in Indian research, raising substantial concerns related to Scientific Misconduct in India.

What is Scientific Misconduct?

• About:
  • Scientific misconduct can be described as a deviation from the accepted standards of scientific research, study and publication ethics.
  • There can be many forms of scientific misconduct such as Plagiarism, Misconduct involving experimental techniques, and Fraud.
  • Retractions occur when published papers are withdrawn from the scientific literature due to various reasons, including mistakes, data fabrication, plagiarism, and other forms of misconduct.
• Examples:
  • When the results of a scientific investigation are reported without giving credit to the principal investigators whose work has been involved.
  • Scientific fraud, where authors create an article with fabricated images or data, which is then submitted to a peer-reviewed publication without approval from an independent oversight board.

What are the Statistics of Scientific Misconduct in India?

• Increases Scientific Retractions:
  • Retractions from India have increased 2.5-times between 2020 and 2022 over the number recorded between 2017 and 2019.
    • The primary reason for retractions is identified as misconduct, where authors knowingly engage in unethical practices.
• Quality Decline Indicators:
  • The ratio of research output to retractions is used as a proxy for quality, revealing an alarming drop in India, almost halving the ratio. This indicates a potential decline in the overall quality of research.
• Domains of Retractions:
  • Engineering sees a significant increase, accounting for almost 48% of all retractions, up from 36% in the period 2017-2019.
  • Additionally, the humanities experience an extraordinary growth of 567% in retractions.
• Reasons for Rise in Scientific Misconduct:
  • A little more than half of the respondents believe that university ranking parameters are behind the rise.
  • Another 35% attributed it to unethical researchers, while 10% pointed to the minimal action taken when an allegation is reported or when an offender is ‘caught’.
  • Additional factors contributing to the rise in retractions include the compulsory publication requirement for PhD students instituted in 2017, potentially leading to low-quality publications, and the proliferation of predatory journals.

• Urgent Call to Action:
  • The data is presented as an urgent call to action, emphasizing the need to scrutinize research malpractice in Indian academia.
  • The potential consequences on both research and teaching are highlighted, urging immediate intervention to prevent the production of substandard or bogus research.

What are the Ethical Implications of Scientific Misconduct?

• Long term Consequences:
  • Scientific misconduct, regardless of its scale, can have far-reaching consequences, especially when influential figures in a field are involved.
• Breach of Academic Integrity:
  • Scientific misconduct, including plagiarism, data fabrication, and manipulation, constitutes a serious breach of academic and scientific integrity. It undermines the foundation of honest and transparent scholarly inquiry.
• Impact on Trust and Credibility:
  • Unethical practices erode the trustworthiness of scientific findings, diminishing the credibility of research. This not only affects the reputation of individual researchers but also tarnishes the image of the entire scientific community.
• Compromised Quality and Academic Rigor:
  • The alarming drop in the ratio of research output to retractions signifies compromised quality.
  • This compromises academic rigor, hindering the progress and advancement of knowledge.

Way Forward

• In response to the absence of institutional efforts, some scientists have taken it upon themselves to scrutinize collaborative work, distinguishing between credible and flawed research to avoid tarnishing all their work.
  • However, a broader reevaluation is necessary, particularly among influential figures in science. The idealized notion that science is inherently rigorous and self-correcting needs to be revised, recognizing its complexity and the need for enhanced methods and norms.
• This requires incorporating technology and incentives to promote continuous self-assessment and improvement, making it a standard practice rather than a response to 'special' circumstances.

Status of India's Smart Cities Mission

Source: IE

Why in News?

The Ministry of Housing and Urban Affairs's latest data, as of 3rd November 2023, provides insights into the status of India's Smart Cities Mission.

• With the mission's deadline approaching in June 2024, the analysis showcases top-performing cities, financial milestones, and regional variations in project completion.

What are the Key Findings Regarding the Status of India's Smart Cities Mission?

• Leading Cities in Completion of Projects:
  • Surat (Gujarat) emerges as the top-performing city, leading in the completion of projects, fund utilization, and overall criteria.
  • Agra (Uttar Pradesh(UP)), Ahmedabad (Gujarat), Varanasi (UP), and Bhopal (Madhya Pradesh) secure positions in the top five cities, showcasing commendable progress.
  • The rest of the top 10 include Tumakuru (Karnataka), Udaipur (Rajasthan), Madurai (Tamil Nadu), Kota (Rajasthan) and Shivamogga (Karnataka).
• Regional Disparities:
  • Union Territories (UTs) and cities in Northeastern states find themselves in the bottom 10.
    • The bottom 10 cities are Kavaratti (Lakshadweep), Puducherry, Port Blair (Andaman and Nicobar Islands), Imphal (Manipur), Shillong (Meghalaya), Diu, Guwahati (Assam), Aizawl (Mizoram), Gangtok (Sikkim) and Pasighat (Arunachal Pradesh).
  • Sources attribute the slower progress in smaller cities to capacity constraints, emphasizing the need for tailored strategies to address the unique challenges faced by these urban centers.
• Overall Project Landscape:
  • About 22% of total projects (1,745 of 7,947) that account for 33% out of Rs 1.70 lakh crore) of the total cost are still ongoing. The majority of projects (6,202) have been completed, emphasizing the scale and financial investment involved.

Note: The Government has decided to extend the Smart Cities Mission deadline by one year, from June 2023 to June 2024.

UPSC Civil Services Examination Previous Year Question (PYQ)

Q. With a brief background of the quality of urban life in India, introduce the objectives and strategy of the ‘Smart City Programme.’ (2016)

Traditional Seed Preservation Practices in North East

Source: DTE

Why in News?

Ao and Sümi Naga communities in Nagaland follow practices passed down through generations, Traditional Seed Preservation Practices, preserving seeds from successful harvests for successive cycles. 

• Traditionally agrarian, the Ao and Sümi Naga communities practise jhum or shifting cultivation.

Note: Seed preservation refers to the intentional act of storing seeds from plants for future use. It involves collecting, storing, and maintaining seeds under specific conditions to ensure their viability and ability to germinate when planted. 

• The goal of seed preservation is to safeguard genetic diversity, conserve plant species, and maintain agricultural productivity.

Who are Nagaland's Ao and Sümi Naga Communities?

• Ao Naga Community:
  • The Ao Naga tribe predominantly resides in Nagaland's Mokokchung district, stretching from Tsüla (Dikhu) Valley to Tsürang (Disai) Valley.
  • Believed to have originated from Southeast Asian countries like Indonesia, Malaysia, and Myanmar, the Ao Nagas are part of the Naga tribes descending from Mongoloid ancestry.
  • Within the Ao tribe, two racial groups, the Mongsen and the Chongli, constitute distinct segments.
  • The Aos became the first Nagas to adopt Christianity and Western education.
• Sümi Naga Community:
  • The Sümi Naga people are another indigenous community in Nagaland known for their unique cultural practices and strong agricultural heritage.
  • They celebrate various festivals like Tuluni, Ahuna, and Tsükhenye, often centered around agricultural cycles, accompanied by traditional dances, songs, and feasts.
  • Similar to several other Naga tribes, the Sümi Naga traditionally practiced jhum or shifting cultivation, cultivating crops such as rice, millet, beans, lentils, pepper, and tobacco.

What is Shifting Cultivation?

• Shifting cultivation, locally called 'Jhum', is a widely practiced system of crop cultivation among the indigenous communities of Northeast India. 
• The practice, also known as slash-and-burn agriculture, is when farmers clear land by slashing vegetation and burning forests and woodlands to create clear land for agricultural purposes.
• This provides a very easy and very fast method of the preparation of the land for agriculture.
• The bush and the weeds can be removed easily. The burning of waste materials provides needed nutrients for the cultivation.
• It gives a family its food, fodder, fuel, livelihood and is closely linked to their identity.
• Because of cutting of forests and trees, this practice leads to soil erosion and may also affect the course of rivers.

Motorable Road to Amarnath Cave Shrine

Source: IE

Why in News?

The Border Roads Organisation (BRO) has completed the construction of a motorable road that connects the Amarnath cave shrine in Kashmir’s Lidder Valley with the Baltal base camp, making the pilgrimage more accessible and comfortable for the devotees.

• This milestone resulted from the successful upgrade of the Baltal road, a feat accomplished through the continuous efforts of Project Beacon.

Note:

• Project Beacon is the BRO's oldest undertaking, was raised on May 18, 1960, with its headquarters at Srinagar, Jammu and Kashmir.
  • Beacon currently takes care of the road infrastructure development and maintenance in important areas of Kashmir.

What are the Key Facts Regarding Amarnath Cave Shrine?

• The Amarnath mountain features a cave on its south famously known as the Amarnath Cave. This cave is the location of the Amarnath Temple, a significant Hindu shrine situated in the Pahalgam tehsil of the Anantnag district in Jammu and Kashmir, India.
  • The shrine is perched at an altitude of 3,800 metres, contributing to the challenging nature of the pilgrimage.
• Amarnath Peak, a part of the Himalayas is a mountain with a peak elevation of 5,186 meters, in the Ganderbal district of Jammu and Kashmir, in the vicinity of Sonamarg.
• Amarnath yatra is an annual pilgrimage to the Amarnath cave, where devotees pay homage to an ice stalagmite believed to be the lingam of Lord Shiva.
  • The ice stalagmite forms every year during the summer months and reaches its maximum size in July and August, when thousands of Hindu devotees make an annual pilgrimage to the cave.
• Traditional Access Routes:
  • Pilgrims historically approached the shrine via two routes Pahalgam and Sonamarg both located in the Lidder Valley, each presenting its own set of challenges through demanding terrains.
  • Pilgrims also had the option to use chopper services from Baltal to Panchtarni, located 6 km away from the shrine. However, ecological concerns led to the discontinuation of services directly to the shrine.

Rapid Fire Current Affairs

AAINA Dashboard for Cities

The Ministry of Housing and Urban Affairs (MoHUA) launched the 'AAINA Dashboard for Cities' portal, offering Urban Local Bodies (ULBs) a platform to voluntarily submit key data.

• AAINA aims to help cities assess their performance relative to others. It seeks to inspire cities by highlighting possibilities and areas for enhancement.
• The Dashboard categorizes data into five pillars: Political & Administrative Structure, Finance, Planning, Citizen-Centric Governance, and Delivery of Basic Services.
  • ULBs will regularly submit data, including audited accounts and self-reported performance metrics, through a user-friendly portal.
• AAINA is envisioned as a permanent platform for ULB-related data, a comprehensive database of key performance metrics.
  • With active ULB cooperation, the dashboard aims to become a public resource, allowing stakeholders to access and utilize the collected data.

Read more: Urban Local Government in India

---

Zaglossus attenboroughi

Recently, Scientists have rediscovered the elusive Zaglossus attenboroughi, a long-beaked echidna named after naturalist David Attenborough, in Indonesia's Papua region.

• Echidnas, part of the monotreme group, are unique mammals laying eggs instead of giving live birth. Also known as spiny anteaters, they sport sharp spines on their bodies and primarily feed on ants and termites.
• Echidnas, particularly the Zaglossus attenboroughi, are nocturnal and shy, making their discovery challenging. This species was confined to the remote Cyclops Mountains.
• International Union for Conservation of Nature (IUCN) Red List: Critically Endangered
• Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES): Appendix II

---

World Diabetes Day

World Diabetes Day (WDD) is celebrated annually on 14 November, coinciding with the birthday of Sir Frederick Banting, the co-discoverer of insulin in 1922 alongside Charles Best.

• Origin: WDD originated in 1991 as a response to the increasing health threat of diabetes, established by the International Diabetes Federation (IDF) and the World Health Organization.
• Official Recognition: In 2006, WDD attained official recognition as a United Nations Day through the adoption of United Nations Resolution 61/225.
• Campaign: WDD campaign strives to be the primary platform for promoting IDF advocacy initiatives throughout the entire year.
• Logo: Blue circle logo adopted in 2007 recognized as the symbol for diabetes awareness.
• Theme(2021-23): Access to Diabetes Care

Read More: World Diabetes Day

---

Birth Anniversary of Pandit Jawahar Lal Nehru

Every year on November 14, Children's Day is observed to pay homage to the first Prime Minister of independent India.

• 'Chacha Nehru,' as Jawaharlal Nehru was affectionately known, was renowned for highlighting the significance of expressing love and care towards children.
• Following his passing, it was collectively agreed to commemorate his birthday as 'Bal Diwas' or Children's Day in India.

Read More: Jawahar Lal Nehru