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DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 1st August 2022

Archives (PRELIMS & MAINS Focus) Space Liability Convention of 1972 Open in new window Syllabus Prelims – Science & Technology Mains – GS 3 (Science & Technology) In News:  The debris from a large Chinese rocket – the Long March 5B — crashed to earth over the Pacific and the Indian oceans. As the 22-tonne core stage of the rocket hurtled uncontrollably back to earth, there were fears that it might hit a populated area. What is an uncontrolled re-entry? Generally, the core or first stage of a rocket is made up of heavy pieces that usually don’t reach orbit after liftoff, and fall back safely along a near-precise projected trajectory. If they do enter an orbit, then a costly de-orbit manoeuvre is required for a steered, controlled return using engine burn. Without a de-orbit manoeuvre, the orbital core stage makes an uncontrolled fall. Gigantic remnants from China’s Long March 5B rockets’ core stage are known to make such fiery, out-of-control descents back to earth. The reason is a difference in the mission sequence where the core stage reaches orbit, and then crashes back. Most nations’ rockets separate the launcher from the payload before leaving the atmosphere. An extra engine then gives the payload a final boost. But China’s 5B series does not use a second engine and pushes right into orbit Previous incidents In May 2020, Long March 5B debris had apparently fallen in Ivory Coast; and a year later in May 2021, remains of a Chinese rocket had dived uncontrolled into the Indian Ocean near Maldives. Why is it difficult to track uncontrolled descents? The variables involved make it difficult to precisely track the re-entry time and drop zone of rocket debris in uncontrolled descents. The factors that make this prediction extremely challenging include atmospheric drag, variations in solar activity, angle and rotational variation of the object among others. A miscalculation of even a minute in re-entry time could result in the final resting place of the debris changing by hundreds of kilometres. Are there laws regulating space junk? The Space Liability Convention of 1972 defines responsibility in case a space object causes harm. The treaty says that a launching State shall be absolutely liable to pay compensation for damage caused by its space objects on the surface of the earth or to aircraft, and liable for damage due to its faults in space. The Convention also provides for procedures for the settlement of claims for damages. However, there is no law against space junk crashing back to earth. In April this year, suspected debris from a Chinese rocket was found in two Maharashtra villages. In 1979, re-entry of NASA’s 76-ton Skylab had scattered debris over uninhabited parts of Australia, and the space agency was fined $400 for littering by a local government. The only settlement using the Liability Convention was between the erstwhile Soviet Union and Canada over debris of Soviet Cosmos 954 falling in a barren region. Canada was paid CAD 3 million in accordance with international law for cleaning up the mess Source: Indian Express Previous Year Question Q.1) With reference to the Indian Regional Navigation Satellite System (IRNSS), consider the following statements: (2018) IRNSS has three satellites in geostationary and four satellites in geosynchronous orbits. IRNSS covers entire India and about 5500 sq. km beyond its borders. India will have its own satellite navigation system with full global coverage by the middle of 2019. Which of the statements given above is/are correct? 1 only 1 and 2 only 2 and 3 only None Q.2) Which one of the following statements best reflects the idea behind the “Fractional Orbital Bombardment System” often talked about in media? (2022) A hypersonic missile is launched into space to counter the asteroid approaching the Earth and explode it in space. A spacecraft lands on another planet after making several orbital motions. A missile is put into a stable orbit around the Earth and deorbits over a target on the Earth. A spacecraft moves along a comet with the same surface. speed and places a probe on its Electoral bonds Open in new window Syllabus Prelims – Polity – Current Affairs Mains – GS 2 (Polity & Governance) In News: Donations to political parties through electoral bonds (EBs) have crossed the Rs 10,000-crore mark, with parties getting another Rs 389.5 crore through such bonds in the 21st sale of EBs conducted between July 1 and 10. With this, the total amount collected by parties has gone up to Rs 10,246 crore from various anonymous donors in 21 phases since 2018 when the EB scheme was introduced. As per the provisions of the EB Scheme, only the political parties registered under Section 29A of the Representation of the People Act, 1951 and have secured not less than 1 per cent of the votes polled in the last general election to the House of the People or the Legislative Assembly, as the case may be, are eligible to receive electoral bonds. Electoral Bond Electoral Bond is a financial instrument for making donations to political parties. These bonds are issued in multiples of Rs. 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh and Rs. 1 crore without any maximum limit. State Bank of India is authorised to issue and encash these bonds, which are valid for fifteen days from the date of issuance. These bonds are only redeemable in the designated account of a registered political party. The bonds are available for purchase by any citizen of India for a period of ten days each in the months of January, April, July and October as may be specified by the Central Government. A person being an individual can buy bonds, either singly or jointly with other individuals. The donor’s name is not mentioned on the bond. Donors who contribute less than Rs. 20,000 to political parties through purchase of electoral bonds need not provide their identity details such as PAN, etc. The central idea behind the electoral bonds scheme was to bring about transparency in electoral funding in India. Source: Indian Express CoWin App Open in new window Syllabus Prelims – Current Affairs In News: After the success of the Co-WIN platform, the government is looking to repurpose the technology for various healthcare cases. CoWIN is currently being repurposed for the universal immunisation program (UIP). It will bring the ease of discovery of vaccination centres/camps and reminders for subsequent vaccinations for preventable diseases for mothers. The addition of digitally verifiable certificates for routine immunisation would be the first of its kind globally and a great way to start building longitudinal health records for a child right from its birth. In addition to immunisation, the platform would also be considered for the use-cases of blood donation and organ donation in the months to come. Co-WIN App (Covid Vaccine Intelligence Network) The technology has been integral to India’s fight against COVID-19 and the CoWIN platform was developed in no time, leveraging experience in developing and implementing large scale applications such as Aadhaar, UPI, GST, etc Co-WIN, a cloud-based IT platform, is supposed to handle minute details for India’s Covid-19 immunisation programme, including registering beneficiaries, allocating vaccination centres, sending text messages with name of their vaccinator to beneficiaries and live monitoring of vials in cold storage. The Co-WIN platform is owned by the Ministry of Health and Family Welfare and was earlier the platform used for conducting Pulse Polio and other crucial immunisation programmes across the country. The same platform has been expanded for distribute Covid-19 vaccines and the Ministry of Electronics and IT along with the National Informatics Centre are handling the backend and the tech infrastructure for it. Functions Monitoring and tracking – It enables monitoring the inoculation drive and tracking the listed beneficiaries for vaccination on a real-time basis. Thus, it also helps to counter proxy vaccinations. Source: The Hindu Previous Year Question Q.1) Consider the following: (2022) Aarogya Setu COWIN DigiLocker DIKSHA Which of the above are built on top of open-source digital platforms? 1 and 2 only 2, 3 and 4 only 1, 3 and 4 only 1, 2, 3 and 4 India’s ‘wheat waiver’ WTO demand is risk-fraught Open in new window Syllabus Prelims – Current Affairs (International Relations) Mains – GS 3 (Economy – Agriculture) Context: One of the cardinal demands of India in the World Trade Organization (WTO) — and rightly so — has been to find a permanent solution to the issue of public stockholding (PSH) of food to protect India’s food security (PSH policy). What it is all about? India’s PSH policy is based on procuring food from farmers at an administered price (MSP), which is generally higher than the market price. The PSH policy serves the twin objectives of Offering remunerative prices to farmers and Providing subsidised food to the underprivileged. WTO law Such price support-based procurement from farmers is counted as a trade-distorting subsidy, and if given beyond the permissible limit, breaches WTO law. Currently, India has temporary relief due to a ‘peace clause’ which bars countries from bringing legal challenges against price support-based procurement for food security purposes. However, a permanent solution to this issue is still not in the offing. Recent WTO ministerial meeting The WTO ministerial meeting in June at Geneva did precious little to address this issue. The declaration on food security adopted at the Geneva ministerial states that “we recognize that adequate food stocks can contribute to the realization of Members’ domestic food security objectives and encourage Members with available surplus stocks to release them on international markets consistently with WTO rules.” India’s concern is that it should have the policy space to hold public food stocks using the MSP, which is a price support instrument. However, there is no mention of price support in the Geneva declaration. New dimension India’s demand for a permanent solution to the PSH policy has acquired a new dimension. India insists that it should also be allowed to export food, most notably wheat, from the pool of the foodgrain procured under the MSP. This demand was recently re-articulated by Finance Minister at the G20 meeting in Indonesia. The Russia-Ukraine war has unleashed a food crisis in many countries. India perhaps wishes to capitalise on this opportunity. However, WTO law proscribes countries from exporting foodgrain procured at subsidised prices. There is a sound economic rationale behind it. Allowing a country to export foodgrain procured at subsidised prices would give that country an unfair advantage in global agricultural trade. As per the WTO Agreement, waivers can be adopted only in “exceptional circumstances”. Thus, the possibility of it recognising an ongoing war between two nations as an “exceptional circumstance” to adopt a waiver for permitting wheat exports from public stocks is profoundly remote. What the focus should be? India should revisit its stand on asking for a waiver for wheat exports from its public stockholding, which, in any case, was not a part of India’s PSH policy. The Government’s wheat procurement has been 57.5% less than the original target for this season. So, if the public procurement has been so low, there is no point in asking for a waiver to export wheat from the public stock. Spending scarce negotiating capital on this issue might dilute India’s core agenda of pushing for a permanent solution for its PSH programme to attain the goal of food security and providing remunerative prices to the farmers. The laudable objective of helping countries facing food crises can be accomplished by strengthening India’s commitment to the United Nations World Food Programme. If the domestic situation ameliorates, India can lift the ban imposed on private traders to export wheat. Negotiations at the WTO require crystal clarity of the core objectives that should be relentlessly pursued. Adding newer objectives and shifting goalposts might result in falling between two stools. Peace Clause Peace clause refers to article 13 of the Agreement on Agriculture of the World Trade Organisation. According to this clause, export subsidies and support measures, given by a WTO member to its producers, that are considered legal under the Agreement on Agriculture cannot be challenged as being illegal under other WTO agreements. The original peace clause expired in 2004. In the 2013 Bali Conference, another temporary clause of this kind was put in place. Source: The Hindu Previous Year Question Q.1) Consider the following statements: (2017) India has ratified the Trade Facilitation Agreement (TFA) of WTO. TFA is a part of WTO’s Bali Ministerial Package of 2013. TFA came into force in January 2016. Which of the statements given above is/are correct? 1 and 2 only 1 and 3 only 2 and 3 only 1, 2 and 3 The need for a distinction between blasphemy and hate speech Open in new  window Syllabus Mains – GS 1 (Society); GS 2 (Polity) What is Blasphemy and Hate Speech? Blasphemy is the act of insulting or showing contempt or lack of reverence for God. Hate Speech is an abusive or threatening speech or writing that expresses prejudice against a particular group or an individual, especially on the basis of race, religion, or sexual orientation. Laws in India Section 295 (A) of IPC As far as laws in India go, there isn’t formal legislation against blasphemy. The closest equivalent to a blasphemy law is Section 295(A) of the Indian Penal Code (IPC), which punishes any speech, writings, or signs that with premeditated and malicious intent insult citizens’ religion or religious beliefs with a fine and imprisonment for up to three years. The legality of Section 295(A), which had been challenged in the Ramji Lal Modi case (1957), was affirmed by a five-judge Bench of the Supreme Court. The apex court reasoned that while Article 19(2) allows reasonable limits on freedom of speech and expression for the sake of public order, the punishment under Section 295(A) deals with aggravated form of blasphemy which is committed with the malicious aim of offending the religious sensibilities of any class. How has the legislation been interpreted? In the case of Superintendent, Central Prison, Fatehgarh vs Ram Manohar Lohia the Supreme Court stated that the link between the speech spoken and any public disorder caused as a result of it should have a close relationship for retrieving Section 295(A) of IPC. By 2011, it concluded that only speech that amounts to “incitement to impending unlawful action” can be punished. That is, the state must meet a very high bar before using public disturbance as a justification for suppressing expression. Should there be a difference between blasphemy laws and hate speech laws? The wording of Section 295(A) is considerably too wide. The Supreme Court has said on several occasions that perhaps the goal of hate speech statutes in Section 295(A) is to prevent prejudice and ensure equality. Unfortunately, there is a huge disparity between this interpretation and the actual wording due to which the law is still being exploited at all levels of administration. Are hate speech cases rising? As per the data given by the National Crime Records Bureau (NCRB), there has been a huge increase in cases registered promoting hate speech and fostering animosity in society. The data reads that while there were only 323 cases registered in 2014, it had increased to 1,804 cases in 2020. This is because section 295(A) is now usually used to penalise religious dissent, satire, and any comedic content with religious references. Many cases show how regulations don’t draw a line between criticism and premeditated hate speech. Failing to articulate these distinctions diminishes fair use of the Section and makes it more difficult to define and penalise the actual crime of hate speech. Source: The Hindu Bringing Eurasia closer Open in new  window Syllabus Prelims – Geography – Current Affairs Mains – GS 2 (International Relations); GS 3 (Economy – Trade, Connectivity etc) In News: Recently, International North South Transport Corridor (INSTC) was launched. Last week, RailFreight.Com reported that two 40-ft containers of wood laminate sheets crossed the Caspian Sea from Russia’s Astrakhan port, entered Iran’s Anzali port, continued their southward journey towards the Arabian Sea, entered the waters at Bandar Abbas and eventually reach Nhava Shiva port in Mumbai. The journey signalled the launch of the International North South Transport Corridor (INSTC), a 7,200-km multi-modal transport corridor that combines road, rail and maritime routes connecting Russia and India via central Asia and Iran. INSTC The legal framework for the INSTC is provided by a trilateral agreement signed by India, Iran and Russia at the Euro-Asian Conference on Transport in 2000. Since then Kazakhstan, Belarus, Oman, Tajikistan, Azerbaijan, Armenia and Syria have signed instruments of accession to become members of the INSTC. Once fully operational, the INSTC is expected to reduce freight costs by 30% and journey time by 40% in comparison with the conventional deep sea route via the Suez Canal. Indeed, the need for an alternative route was deeply felt last year, when the Ever Given container ship was stuck in the Suez, halting maritime traffic between the Mediterranean Sea and the Red Sea. India’s investment in the INSTC is exemplified by its involvement in Iran’s Chabahar port and the construction of a 500-km Chabahar-Zahedan railway line. Once completed, this infrastructure will allow India access to Afghanistan and central Asia, a prospect strengthened by the Taliban government’s support for the project. A special economic zone around Chabahar will offer Indian companies the opportunity to set up a range of industries. Lines of credit will be extended to Iran by Exim Bank. The INSTC, thus, provides an opportunity for the internationalisation of India’s infrastructural state, with state-run businesses taking the lead and paving the way for private companies. Significance – Non-alignment to multi-alignment For India, the INSTC achieves several things all at once. Firstly, India can now bypass Pakistan to access Afghanistan, central Asia and beyond. Second, the INSTC can shape a north-south transport corridor that can complement the east-west axis of the China-led Belt and Road Initiative (BRI). India’s founding role in both the INSTC and the Quad exemplify its departure from non-alignment to multi-alignment. The INSTC offers a platform for India to closely collaborate with Russia, Iran and Central Asian republics. That two of its partners are subject to Western sanctions hasn’t prevented India from collaborating with the U.S., Japan and Australia as part of the Quad to create and safeguard a free and open Indo-Pacific. Indian policymaking in international affairs has often been criticised for its moral indecisiveness, diplomatic reticence and ideological confusion. These critics have failed to observe the subtle shifts in Indian foreign policy from non-alignment to multi-alignment. As a transcontinental multi-modal corridor that aims to bring Eurasia closer together, the INSTC is a laudable initiative in its own right. That it helps India consolidate its multi-alignment strategy sweetens the deal. Source: The Hindu Previous Year Question Q.1) What is the importance of developing Chabahar Port by India? (2017) India’s trade with African countries will enormously increase. India’s relations with oil-producing Arab countries will be strengthened. India will not depend on Pakistan for access to Afghanistan and Central Asia.  Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India. PM and President’s photos in govt ads Open in new  window Syllabus Mains – GS 2 (Polity & Governance) In News: The on Madras High Court directed the Tamil Nadu government to include the photographs of the President of India and Prime Minister in advertisements on the 44th Chess Olympiad underway in Chennai. The HC relied on a 2015 Supreme Court ruling that issued guidelines on government spending on advertisements. What was the 2015 ruling? In Common Cause v Union of India, the SC sought to regulate the way the government spends on advertisements. It essentially regulated the 2007 New Advertisement Policy of the Government of India. The petitioners had argued that there is arbitrary spending on advertisements by the government. The allegations ranged from wastage of public money for political mileage to using advertisements as a tool to manipulate media. The court ruled that Since the primary cause of government advertisement is to use public funds to inform the public of their rights, obligations, and entitlements as well as to explain Government policies, programs, services and initiatives, however, when these requisites are not fulfilled in a government advertisement then the whole purpose would be frustrated Patronization of any particular media house(s) must be avoided and award of advertisements must be on an equal basis to all newspapers who may, however, be categorized depending upon their circulation. The DAVP (Directorate of Advertising and Visual Publicity) guidelines do not deal with the said aspect of the matter and hence the necessity of incorporating the same in the present directions to ensure the independence, impartiality and the neutrality of the fourth estate which is vital to the growth and sustenance of democracy will have to be weighed and considered by us The bench also had set up a committee to suggest a better policy. What did the committee suggest? The three-member committee — comprising Prof N R Madhava Menon, T K Viswanathan, and senior advocate Ranjit Kumar — suggested a fresh policy — the Government Advertisements (Content Regulation) Guidelines 2014 with five broad principles: Advertising campaigns are to be related to government responsibilities Materials should be presented in an objective, fair manner and designed to meet objectives of the campaign Advertisements must not directed at promoting political interests of a party campaigns must be justified and undertaken in a cost-effective manner Advertisements must comply with legal requirements and financial regulations What did the Supreme Court rule? It largely accepted the committee report except on a few issues. The ruling mandated that government advertisements will not contain a political party’s symbol, logo or flag and are required to be politically neutral and must refrain from glorifying political personalities. What about photographs in advertisements? The SC agreed with the committee’s suggestion that photographs of leaders should be avoided and only the photographs of the President/ Prime Minister or Governor/ Chief Minister shall be used for effective government messaging. Then Attorney General Mukul Rohatgi had opposed the recommendation arguing that if the PM’s photograph is allowed in the advertisement, then the same right should be available to his cabinet colleagues as the PM is the “first among the equals”. The court, while restricting the recommendation to the photos of the President and Prime Minister, added the photograph of the Chief Justice of India to that list of exceptions. In 2018, the Centre and some states sought a review of the verdict on the ground that not permitting the publication of the CM’s photograph would violate the federal structure. An SC Bench relaxed the bar, allowing pictures of Union ministers, Chief Ministers, Governors and State ministers in government advertisements. What are the takeaways from the SC ruling? The SC ruling did not mandate publication of the photograph of the PM and President, but only restricts publication of photos of government officials other than the President, PM, CJI, CM and the Governor. Source: Indian Express India’s unique jobs crisis Open in new  window Syllabus Mains – GS 3 (Employment) Context: India is currently facing a unique job crisis because, while fewer people are employed in agriculture today, the transformation has been slow. Stats Between 1993-94 and 2018-19, agriculture’s share in India’s workforce came down from 61.9% to 41.4%, roughly a third in 25 years. Given its level of per capita GDP in 2018 – and comparing with the average for other countries in the same income bracket – India’s farm sector should be employing 33-34% of the total workforce. 4% may not be a substantial deviation from the average. Weak structural transformation There’s been a reversal of the trend in the last two years, which has seen the share of those employed in farms rise to 44-45%. This has primarily to do with the Covid-induced economic disruptions. Even the movement of workforce from agriculture that India has witnessed over the past three decades or more does not qualify as what economists call “structural transformation”. Such transformation would involve the transfer of labour from farming to sectors –manufacturing and modern services – where productivity, value-addition and average incomes are higher. The share of manufacturing (and mining) in total employment has actually fallen along with that of agriculture. The surplus labour pulled out from the farms is being largely absorbed in construction and services. While the services sector does include relatively well-paying industries — such as information technology, business process outsourcing, telecommunications, finance, healthcare, education and public administration — the bulk of the jobs in this case are in petty retailing, small eateries, domestic help, sanitation, security staffing, transport and similar other informal economic activities. Simply put, the structural transformation process in India has been weak and deficient. The surplus labour isn’t moving to higher value-added non-farm activities, specifically manufacturing and modern services (the familiar ‘Kuznets Process’ named after the American economist and 1971 Nobel Memorial Prize winner, Simon Kuznets). Instead, the labour transfer is happening within the low-productivity informal economy. The jobs that are getting generated outside agriculture are mostly in low-paid services and construction; the latter’s share in employment has even overtaken that of manufacturing. Weak structural transformation and persistence of informality also explains the tendency, especially by rural families, for pursuing multiple livelihoods. Many of them cling on to their small plots of lands, even while earning incomes wholly or predominantly from non-farm sources. A picture in contrast IT industry adding jobs: The IT industry is clearly an isolated island of the Indian economy that added jobs during the pandemic and is continuing to do so. The five companies (Tata Consultancy Services, Infosys, Wipro, HCL Technologies and Tech Mahindra) have more employees than the 12.5 lakh and 14.1 lakh currently on the rolls of the Indian Railways and the three defense services, respectively. Much of the IT sector’s recent success is courtesy of exports. These have, in fact, boomed due to Covid’s triggering increased demand for digitisation even among businesses that were hitherto slow in adoption. India’s net exports of software services have surged from $84.64 billion in 2019-20 to $109.54 billion in 2021-22. India’s unique job crisis The manufacturing sector is potentially best placed to absorb agricultural labourers. However, there is a lack of jobs in the manufacturing sector. The more educated are not qualified to be programmers or develop software programs which are essential for the IT industry. They aim to join the armed forces or to sit for the Railway Recruitment Board’s exams. However, there is not much recruitment in these sectors these days. So, the Indian workforce possesses skill sets for the sectors where there is a lack of job opportunities. And sectors that generate excess jobs require particular skill sets that the majority of the Indian workforce lacks. As a result, the Indian economy is unable to absorb excess labour. Source: Indian Express Baba’s Explainer – Hybrid Electric Vehicles (HEV) Hybrid Electric Vehicles (HEV) GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. GS-3: Infrastructure and Economic Development GS-3: Science and Technology- developments and their applications and effects in everyday life. Context: In recent months, automakers Maruti Suzuki, Toyota and Honda have launched hybrid electric vehicles in India, offering car buyers more choices in the nascent electric vehicle market. Read Complete Details on Hybrid Electric Vehicles (HEV) Daily Practice MCQs Daily Practice MCQs Q.1) Consider the following statements about Space Liability Convention of 1972 The Launching States are liable for the damage caused by their space objects only on the surface of the earth but for the damage in space. The convention also holds the Launching States responsible for the space junk crashing back to earth. Choose the correct statements: 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.2) Consider the following statements about Electoral bonds Only State Bank of India is authorised to issue and encash these bonds. These bonds are only redeemable in the designated account of a registered political party. The donor’s name is not mentioned on the bond. Choose the correct statements: 1 only 1 and 2 2 and 3 1, 2 and 3 Q.3) Which of the below given pairs is/are correctly matched? Exercise Country VINBAX Vietnam Nomadic Elephant Mongolia AL NAJAH-IV Oman Choose the correct code: 1 only 2 and 3 2 only 1, 2 and 3 Comment the answers to the above questions in the comment section below!! ANSWERS FOR ’1st August 2022 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs. ANSWERS FOR 30th JULY 2022 – Daily Practice MCQs Answers- Daily Practice MCQs Q.1) – b Q.2) – a Q.3) – d table, td, th { border: 1px solid;} table { width: 100%; border-collapse: collapse;}

Baba’s Explainer

Baba's Explainer - Hybrid Electric Vehicles (HEV)

ARCHIVES Syllabus GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. GS-3: Infrastructure and Economic Development GS-3: Science and Technology- developments and their applications and effects in everyday life. Context: In recent months, automakers Maruti Suzuki, Toyota and Honda have launched hybrid electric vehicles in India, offering car buyers more choices in the nascent electric vehicle market. What is an electric car? Electric cars run on electricity instead of gasoline, and are also known as “electric vehicles” (EVs). That means they emit no tailpipe pollution or greenhouse gas emissions and tend to be quieter and smoother than other vehicles. Most electric cars have batteries that have to be recharged from an outside source of electricity. Electric cars are quieter, have no exhaust emissions, and have lower emissions overall. Notably, some countries have legislated to phase out sales of fossil fuel cars. What are the different types of electric vehicle? There are four types of electric vehicles available: Battery Electric Vehicle (BEV):Fully powered by electricity. These are more efficient compared to hybrid and plug-in hybrids. Hybrid Electric Vehicle: Hybrid Electric Vehicle (HEV): The vehicle uses both the internal combustion (usually petrol) engine and the battery-powered motor powertrain. The petrol engine is used both to drive and charge when the battery is empty. These vehicles are not as efficient as fully electric or plug-in hybrid vehicles. Plug-in Hybrid Electric Vehicle (PHEV): Uses both an internal combustion engine and a battery charged from an external socket (they have a plug). This means the vehicle’s battery can be charged with electricity rather than the engine. PHEVs are more efficient than HEVs but less efficient than BEVs. Fuel Cell Electric Vehicle (FCEV):Electric energy is produced from chemical energy. For example, a hydrogen FCEV. What is a hybrid electric vehicle and how do they work? Hybrid electric vehicles are powered by an internal combustion engine and one or more electric motors, which uses energy stored in batteries. A hybrid electric vehicle cannot be plugged in to charge the battery. Instead, the battery is charged through regenerative braking and by the internal combustion engine. The extra power provided by the electric motor can potentially allow for a smaller engine. Key Components of a Hybrid Electric Car Battery (auxiliary): In an electric drive vehicle, the low-voltage auxiliary battery provides electricity to start the car before the traction battery is engaged; it also powers vehicle accessories. Traction battery pack: Stores electricity for use by the electric traction motor Electric generator: Generates electricity from the rotating wheels while braking, transferring that energy back to the traction battery pack. Some vehicles use motor generators that perform both the drive and regeneration functions. Electric traction motor: Using power from the traction battery pack, this motor drives the vehicle’s wheels. Some vehicles use motor generators that perform both the drive and regeneration functions. Fuel tank (gasoline): This tank stores gasoline on board the vehicle until it’s needed by the engine. Internal combustion engine (spark-ignited): In this configuration, fuel is injected into either the intake manifold or the combustion chamber, where it is combined with air, and the air/fuel mixture is ignited by the spark from a spark plug. Power electronics controller: This unit manages the flow of electrical energy delivered by the traction battery, controlling the speed of the electric traction motor and the torque it produces. Thermal system (cooling): This system maintains a proper operating temperature range of the engine, electric motor, power electronics, and other components. Transmission: The transmission transfers mechanical power from the engine and/or electric traction motor to drive the wheels. How do hybrid electric vehicle (HEV) powertrains work? HEV powertrains are designed to power cars in a series, parallel or series-parallel (power split) methods. A series HEV uses only the electric motor to drive the wheels, while the ICE powers the generator, which in turn recharges the battery. A parallel HEV, based on the driving condition, uses the best power source to power the vehicle. It will alternate between the electric motor and the ICE to keep the car moving. A series-parallel HEV offers a combination of both models and allows to split power, wherein power is routed from the ICE alone or from the battery to the electric motor to drive the vehicle. Moreover, in all three designs, the battery is charged through regenerative braking technology. How does regenerative braking work? Hybrid and electric vehicles apply battery technology, aerodynamics, and other engineering advancements to achieve efficiency in driving. One such feature employed by these energy-saving vehicles is regenerative braking. Regenerative braking captures energy that is otherwise lost during braking and then uses this power to help recharge the vehicle’s battery. Understanding how regenerative braking works first requires knowledge of how a conventional braking system operates. When you step on a vehicle’s brake pedal, the discs and the brake pads create friction as they meet. In turn, the friction creates kinetic energy that dissipates into the environment in the form of heat. Regenerative braking recovers some of the kinetic energy that would otherwise turn into heat and instead converts it into electricity. In this system, the motor drives the wheels during acceleration or cruising, but the wheels drive the motor while decelerating. This two-way energy flow allows the motor to act as a generator, resisting the rotation of the wheels and creating electricity to recharge the vehicle’s battery. There are two conditions when regeneration occurs: When the driver applies the brake pedal When the driver releases the accelerator pedal, and the vehicle is coasting In both cases, the system creates electricity to recharge the battery The amount of electricity the system generates is proportional to the level of braking force. That means the stronger the braking force, the greater the electrical current. Ultimately, the amount of energy the system captures is dependent on the vehicle’s speed and the duration of brake application. The efficiency of HEVs and EVs will in large part be determined by their ability to recover as much energy as possible while braking, with a higher degree of energy recovery lowering fuel consumption. While regenerative braking systems are already available in most EVs, the technology is also used in electric railways. Rail transit can be described as frequent acceleration and braking of trains across many stations. This increases the potential for braking energy recovery using energy storage systems. What are the advantages of regenerative braking system? Better braking efficiency in stop-and-go traffic which enhances fuel economy Also helps in reducing carbon emissions. RBS also helps in energy optimisation resulting in minimum energy wastage. What are the different types of HEVs? The HEVs can be categorised into micro, mild and full hybrid vehicles, based on the degree of hybridisation. A full HEV will have a larger battery and a more powerful electric motor compared with a mild HEV. As a result, a full HEV can power the vehicle for longer distances using just electric mode. A mild HEV cannot drive using only the electric motor and uses the battery at traffic lights or in stop-and-go traffic to support the ICE. Micro hybrids do not offer electric torque assistance as they lack an electric motor, but they have an idle stop-start system and energy management functions. The hybrid variants of the Maruti Suzuki’s Grand Vitara and the Toyota’s Urban Cruiser Hyryder can be classified as full and mild hybrids. Full HEVs offer better fuel economy compared with the other two types of HEVs but they also cost more than them. Plug-in hybrid electric vehicles (PHEVs) are just like full HEVs, but they can be charged using a wall outlet, as they have an onboard charger and a charging port. PHEVs generally use the electric motor until the battery is almost drained, and then automatically switch to the ICE. PHEVs accounted for about 23% of 1.95 million global EV shipments in the first quarter of 2022 What are the advantages of Hybrid Technology? Fuel efficiency: The design of hybrid vehicles for reduced engine size and car weight as compared to ICE vehicles, translates into increased mileage. More power: With the increase in total power and torque, HEVs can deliver instant torque and provide high torque even at low speeds. Minimum emissions: Better fuel efficiency means less carbon footprint of these vehicles, thus helping move towards the goals set out in Paris Climate Accord. To ensure a positive growth rate towards achieving India’s Net Zero Emissions by 2070, a transportation revolution is required in India. The transition to electric mobility is a promising global strategy for decarbonising the transport sector. Disruption-free Technology Transition: HEV helps in creating a local EV parts manufacturing eco-system while simultaneously protecting the huge existing investments and jobs related to ICE parts manufacturing thus ensuring a faster and disruption-free technology transition. What are some challenges of hybrid technology? In a price-sensitive market like India, one of the major challenges for HEVs is the high vehicle cost. Battery, a vital component of an HEV, increases the cost of the vehicle, making it pricier than vehicles powered only by an ICE. The RBS also adds to the higher cost of an HEV. What initiatives are taken by government to promote Electric Vehicle Ecosystem? India is among a handful of countries that support the global EV30@30 campaign, which aims for at least 30% new vehicle sales to be electric by 2030. The remodeled Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme. The FAME India Scheme is aimed at incentivising all vehicle segments i.e. 2 Wheeler, 3 Wheeler Auto, Passenger 4 Wheeler Vehicle, Light Commercial Vehicles and Buses. The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles. Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) for the supplier side It aims to give companies incentives on incremental sales from products manufactured in domestic units. Government has also launched PLI scheme for Auto and Automotive Components for manufacturers of electric vehicles. The automotive industry is transitioning, with an increasing focus on hybrid and battery electric vehicles (BEVs or EVs). Meanwhile, the rise in fossil fuel prices, increase in the adoption of clean mobility solutions, and stringent government norms for emission control drive the growth of the global EV market. Mains Practice Question – What are Hybrid Electric Vehicles? How do they function? What challenges does it possess for wide scale adoption in India? Note: Write answers to this question in the comment section.  

Daily Prelims CA Quiz

UPSC Quiz – 2022 : IASbaba’s Daily Current Affairs Quiz 2nd August 2022

For Previous Daily Quiz (ARCHIVES) - CLICK HERE The Current Affairs questions are based on sources like ‘The Hindu’, ‘Indian Express’ and ‘PIB’, which are very important sources for UPSC Prelims Exam. The questions are focused on both the concepts and facts. The topics covered here are generally different from what is being covered under ‘Daily Current Affairs/Daily News Analysis (DNA) and Daily Static Quiz’ to avoid duplication. The questions would be published from Monday to Saturday before 2 PM. One should not spend more than 10 minutes on this initiative. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” Important Note: Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)After completing the 5 questions, click on 'View Questions' to check your score, time taken, and solutions.To take the Test -Click Here

IASbaba’s TLP (Phase 2): UPSC Mains Answer Writing – General Studies 3 Questions [2nd August, 2022] – Day 38

Hello Students  TLP has been an integral ingredient of success for many toppers and is no secret. In the ‘must do’ list for the civil services exam, TLP is by far the most popular initiative. The popularity stems from the unparalleled quality of questions and synopsis posted in TLP. We strive hard to ensure that you get the real feel of UPSC standards before you write the Mains. You already know the features of TLP. Just to reiterate briefly, in the TLP initiative, we post 5 questions daily for a certain number of weeks (11 for this one). We follow a micro plan that is designed to give you daily targets. The questions are from the day’s syllabus and also from current affairs and you are expected to write the answers and post them on the portal. This year onwards TLP will have a Dedicated Portal for Focused Preparation (tlpmains.iasbaba.com). There will be a separate dedicated portal similar to (The RaRe Series) which students loved and appreciated. The Portal will help you stay focused and keep your preparation streamlined. The Registration link for the dedicated portal is given at the end of the post. We are charging a token amount of 10/- for registration to the dedicated portal. We are doing it because we want to create a community of sincere aspirants who are focused and motivated till the Mains Examination. Please don’t take it otherwise. It is our honest effort to give you the best and at the same time expect students to come with the same energy and dedication to the dedicated platform specially designed for YOU! Join our bandwagon, you won’t regret it. UPSC 2023 Aspirants are encouraged to participate as well. Register Here – CLICK HERE  To Know More About TLP 2022 (Phase 2) – CLICK HERE To Access Day 38 Questions – CLICK HERE  P.S: The review from IASbaba will happen from the time the question is posted till 10 pm every day. We would also encourage peer reviews. So friends get actively involved and start reviewing each other’s answers. This will keep the entire community motivated. All the Best 

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 30th July 2022

Archives (PRELIMS & MAINS Focus) INDIA’s FIRST INTERNATIONAL BULLION EXCHANGE (IIBE) Open in new window Syllabus Prelims – Economy In News: Prime Minister of India launched the India International Bullion Exchange (IIBX), India’s first International Bullion Exchange, and NSE IFSC-SGX Connect. India is the world’s second biggest consumer of gold and the move to set up the IIBX is seen as India’s effort to bring transparency to the market for the precious metal. Setting up of IIBX could lead to standard gold pricing in the country and make it easier for small bullion dealers and jewellers to trade in the precious metal. India International Bullion Exchange (IIBX) It is a platform that not only enrols jewellers to trade on the exchange, but has also set up necessary infrastructure to store physical gold and silver. IIBX will facilitate efficient price discovery with the assurance of responsible sourcing and quality, apart from giving impetus to the financialisation of gold in India. IFSCA is entrusted with notifying the eligible qualified jewellers in India for directly importing gold through IIBX. International Financial Services Centers Authority (IFSCA) PM also laid foundation stone of the headquarters building of the International Financial Services Centers Authority (IFSCA) in GIFT City, Gandhinagar. The IFSCA works as a unified authority for the development and regulation of financial products, financial services and financial institutions at the IFSC at GIFT city in Gandhinagar. NSE IFSC-SGX Connect It is a framework between NSE’s subsidiary in the GIFT International Financial Services Centre (IFSC) and Singapore Exchange Limited (SGX). Under Connect, all orders on NIFTY derivatives placed by members of Singapore Exchange will be routed to and matched on the NSE-IFSC order matching and trading platform. Broker-Dealers from India and across international jurisdictions are expected to participate in large numbers for trading derivatives through Connect. It will deepen liquidity in derivative markets at GIFT-IFSC, bringing in more international participants and creating a positive impact on the financial ecosystem in the GIFT-IFSC. GIFT City GIFT (Gujarat International Finance Tec-City) City is located in Gandhinagar, Gujarat. It consists of a multi-service Special Economic Zone (SEZ), which houses India’s first International Financial Services Centre (IFSC) and an exclusive Domestic Tariff Area (DTA). GIFT city (Gujarat International Finance Tec-City) is envisaged as an integrated hub for financial and technology services not just for India but for the world.  International Financial Services Centres Authority It was established in April 2020 under the International Financial Services Centres Authority Act, 2019. It is headquartered at GIFT City, Gandhinagar in Gujarat. Functions: The Authority shall regulate all such financial services, financial products and Financial Institutions in an IFSC. It may also recommend to the Central Government such other financial products, financial services and financial institutions which may be permitted in the IFSCs. Powers: All powers exercisable by the respective financial sector regulatory (viz. Reserve Bank of India, Securities and Exchange Board of India, IRDAI, etc.) under the respective Acts shall be solely exercised by the Authority in the IFSCs in so far as the regulation of financial products, financial services and FIs that are permitted in the IFSC are concerned. Source: Pib.Gov The Hindu Previous Year Question Q.1) Consider the following statements: (2022) In India, credit rating agencies are regulated by Reserve Bank of India. The rating agency popularly known as ICRA is a public limited company. Brickwork Rating is an Indian credit rating agency. Which of the statements given above are correct? 1 and 2 only 2 and 3 only 1 and 3 only 1, 2 and 3 Floating Solar Power Plant - KAYAMKULAM Open in new window Syllabus Prelims – Current Affairs In News: Prime Minister dedicated to the nation the 92-MW floating solar power project set up at the National Thermal Power Corporation’s (NTPC) Kayamkulam unit in Kerala. PM stated that so far, about 170 GW capacity has been installed from non-fossil sources in India. India is among the top four-five countries in terms of installed solar capacity. The Kayamkulam plant is the second-largest floating solar power project of the NTPC after the 100-MW plant at Ramagundam in Telangana. The floating solar system was built on a 450-acre lake area adjacent to the NTPC’s Rajiv Gandhi Combined Cycle Power Project (RGCCPP). Implemented at a cost of ₹465 crores, the project consists of around three lakh Made in India solar PV panels floating on water. Source: The Hindu Previous Year Question Q.1) Consider the following statements: (2022) Gujarat has the largest solar park in India Kerala has a fully solar powered International Airport Goa has the largest floating solar photovoltaic project in India. Which of the statements given above is/are correct? 1 and 2 2 only 1 and 3 3 only Draft e-waste Rules Open in new window Syllabus Prelims – Current Affairs Mains – GS 3 (Environment Poll) In News: Recently Environment Ministry has released Draft E-waste Management Rules, 2022, for public comments. Proposed Features + Concerns Stats The Environment Ministry estimated 7,70,000 tons of e-waste to have been generated in 2018-19 and around one million tons in 2019-20 of which only a fifth (about 22% in both years) has been confirmed to be “dismantled and recycled.” Background A proposed framework by the Centre for regulating e-waste in India has upset a key link of India’s electronic waste collection system and threatens the livelihood of thousands. Electronic waste that are past their shelf life is largely handled by India’s vast informal sector. Many of these units are run out of unregulated sweatshops that employ child labour and hazardous extraction techniques. This electronic detritus also contributes to contaminating soil as well as plastic pollution. To address all of this, the environment ministry brought the E waste (Management) Rules, 2016, that introduced a system of Extended Producer Responsibility (EPR) compelling makers of electronic goods to ensure a proportion of the goods they sold every year was recycled. They are expected to maintain records annually demonstrating this. Most companies however didn’t maintain an in-house unit in charge of recycling and this gave rise to network of government-registered companies, called Producer Responsibility Organisations (PRO) who acted as an intermediary between manufacturers of electronic goods and formal recycling units that were technologically equipped to safely and efficiently recycle end-of-life electronic goods. As of March, the Central Pollution Control Board has registered 74 PROs, and 468 authorised dismantlers who have a collective recycling capacity of about 1.3 million tons. Draft Rules Recently the Environment Ministry issued a draft notification that does away with PRO and dismantlers and vests all responsibility of recycling with authorised recyclers, only a handful of whom exist in India. Recyclers will source a quantity of waste, recycle them and generate electronic certificates. Companies can buy these certificates equivalent to their annual committed target and thus do not have to be involved with engaging PROs and dismantlers. T Several PROs have mailed their objections to the Environment Ministry arguing that dismantling a fledgling system was detrimental to the future of e-waste management in India. Under the new rules, recyclers will likely establish their own supply chains and companies will no longer bear any responsibility for ensuring that their produce is recycled. Concern Five years of investing and putting in place a system to collect and channelise waste was under threat as about 25,000-30,000 were employed in this sector. E-waste Management Rules, 2016: The Central Government, in the exercise of the powers provided under the Environment (Protection) Act, 1986, had notified e-waste management rules in 2016. These rules supersede the E-waste (Management and Handling) Rules, 2011. The rules aim to enable the recovery and/or reuse of useful material from e-waste, and to ensure the environmentally sound management of all types of waste of electrical and electronic equipment. For the first time, the rules brought the producers under Extended Producer Responsibility (EPR), along with targets. Producers have been made responsible for the collection of E-waste and for its exchange. The manufacturers, dealers, e-retailers, and refurbishers have been brought under the ambit of these rules to ensure that the e-waste is effectively channelized and disposed of. The urban local bodies have been assigned the responsibility of collecting back the e-waste arising from the orphan products and channelizing it to authorized dismantler or recycler. Amendment to EWM Rules, 2016: In 2018, the EWM Rules were further amended. The new E-Waste (Management) Amendment Rules, 2018 has the provision of introduction of Producer Responsibility Organisation (PRO) registration. PRO is defined as a professional organization which can take the responsibility for collection and channelization of e-waste to ensure environmentally sound management of such e-waste. PROs are now required to register with CPCB under the new Rules. PROs will also have to prove that all collection is legitimate and share proofs for such collection. Source: The Hindu Previous Year Questions Q.1) Due to improper/indiscriminate disposal of old and used computers or their parts, which of the following are released into the environment as e-waste? (2013) Beryllium Cadmium Chromium Heptachlor Mercury Lead Plutonium Select the correct answer using the codes given below: 1, 3, 4, 6 and 7 only 1, 2, 3, 5 and 6 only 2, 4, 5 and 7 only 1, 2, 3, 4, 5, 6 and 7 Q.2) In India, ‘extended producer responsibility’ was introduced as an important feature in which of the following? (2019) The Bio-medical Waste (management and handling) rules,1998 The Recycled Plastic (manufacturing and usage) rules, 1999 The e- Waste (Management and handling) rules, 2011 The food safety and standard regulations, 2011 Pingtan Islands Open in new window Syllabus Prelims – Geography (Places in News) In News: China announces military exercise opposite Taiwan China’s military exercise comes ahead of U.S. Speaker Nancy Pelosi’s plans to visit to the island country. The ruling Communist Party’s military wing, the People’s Liberation Army, was conducting “live-fire exercises” near the Pingtan islands off Fujian province, China. China says Taiwan has no right to conduct foreign relations. I t sees visits by American officials as encouragement for the island to make its decades-old de facto independence official. Taiwan and China split in 1949 after a civil war that ended with a communist victory on the mainland. The two governments say they are one country but disagree over which is entitled to national leadership. They have no official relations but are linked by billions of dollars in trade and investment. Source: The Hindu Previous Year Question Q.1) Which one of the following statements best reflects the issue with Senkaku Islands, sometimes mentioned in the news? (2022) It is generally believed that they are artificial islands made by a country around South China Sea. China and Japan engage in maritime disputes over these islands in East China Sea. A permanent American military base has been set up there to help Taiwan to increase its defence capabilities. Though International Court of Justice declared them as no man’s land, some South-East Asian countries claim them. Military Exercises Open in new  window Syllabus Prelims – Current Affairs Ex VINBAX 2022 In News: The 3rd Edition of Vietnam India Bilateral Army Exercise “Ex VINBAX 2022” is scheduled to be conducted at Chandimandir from 01 to 20 Aug 2022. The exercise is a sequel to previously conducted bilateral exercise in Vietnam in 2019 and a major milestone in strengthening the bilateral relations between India and Vietnam. India and Vietnam share a Comprehensive Strategic Partnership and defence cooperation is a key pillar of this partnership. Vietnam is an important partner in India’s Act East policy and the Indo-Pacific vision. The theme of Ex VINBAX – 2022 is employment and deployment of an Engineer Company and a Medical Team as part of United Nations Contingent for Peace Keeping Operations. Al NAJAH-IV In News: The 4th Edition of India Oman Joint Military Exercise ‘AL NAJAH-IV’ between contingents of Indian Army and the Royal Army of Oman is scheduled to take place at the Foreign Training Node of Mahajan Field Firing Ranges (Rajasthan) from 01 to 13 August 2022. The joint exercise would focus on Counter Terrorism Operations, Regional Security Operations and Peace Keeping Operations under United Nations charter apart from organising joint physical training schedules, tactical drills, techniques and procedures. The joint military exercise aims to enhance the level of defence co-operation between Indian Army and Royal Army of Oman and will further manifest in enhancing the bilateral relations between the two nations. Source: Pib.Gov Pib.Gov Chabahar Day Open in new  window Syllabus Prelims – International Relations Mains – International Relations In News: ‘Chabahar Day’ observed to promote Chabahar – Link to INSTC – Connecting Central Asian Markets. Ministry of Port, Shipping and Waterways (MoPSW) in association with India Ports Global observed ‘Chabahar Day’ to mark the Chabahar – Link to INSTC – Connecting Central Asian Markets in Mumbai. Dignitaries from Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Afghanistan were present on the occasion. The Chabahar Port located in Iran is the commercial transit center for the region and especially Central Asia. Minister in his address stated that our vision is to make Shahid Beheshti Port at Chabahar a transit hub and linking it to INSTC to reach out to Central Asian Countries. During the event, the delegates from the Central Asian countries highlighted how Chabahar link with INSTC can play a vital role in boosting EXIM trade in their regions and its potential to further boost development in the landlocked countries. The port is being developed by India, Iran and Afghanistan to boost trade ties among the three countries in the wake of Pakistan denying transit access to New Delhi. Chabahar Port Chabahar Port is a seaport in Chabahar located in south-eastern Iran, on the Gulf of Oman. It serves as Iran’s only oceanic port, and consists of two separate ports named Shahid Kalantari and Shahid Beheshti. It is considered to be a major transit point to connect with several Central Asian countries. The port of Chabahar is located on the Makran coast of Sistan and Baluchistan Province, next to the Gulf of Oman and at the mouth of Strait of Hormuz. It is the only Iranian port with direct access to the Indian Ocean. Being close to Afghanistan and the Central Asian countries of Turkmenistan, Uzbekistan etc., it has been termed the “Golden Gate” to these land-locked countries. International North-South Transport Corridor (INSTC): It is a multi-modal transportation established on 12th September 2000 in St. Petersburg, by Iran, Russia and India for the purpose of promoting transportation cooperation among the Member States. The INSTC was expanded to include eleven new members, namely: the Republic of Azerbaijan, Republic of Armenia, Republic of Kazakhstan, Kyrgyz Republic, Republic of Tajikistan, Republic of Turkey, Republic of Ukraine, Republic of Belarus, Oman, Syria, Bulgaria (Observer). It envisions a 7,200-km-long multi-mode network of ship, rail and road route for transporting freight, aimed at reducing the carriage cost between India and Russia by about 30% and bringing down the transit time from 40 days by more than half. This corridor connects India Ocean and the Persian Gulf to the Caspian Sea via the Islamic Republic of Iran and then is connected to St. Petersburg and North Europe via the Russian Federation. Source: Pib.Gov Previous Year Question Q.1) What is the importance of developing Chabahar Port by India? (2017) India’s trade with African countries will enormously increase. India’s relations with oil-producing Arab countries will be strengthened. India will not depend on Pakistan for access to Afghanistan and Central Asia.  Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India. Shaheed Udham Singh Open in new  window Syllabus Prelims – History In News: Prime Minister salutes Shaheed Udham Singh on his martyrdom day. Udham Singh Singh was born on December 26, 1899, to a very poor family in the Sangrur district of Punjab. His birth name was Sher Singh. Singh joined the British Indian Army during the First World War as a manual labourer, serving overseas. It was after his return to India in 1919 that his life as a revolutionary began. In the two decades of political activism that followed – activism that spanned four continents and more than 20 countries – Singh took on different names and occupations. At one point, he was known as Ude Singh; at another, Frank Brazil. His last nom de guerre was Mohammad Singh Azad, a name he considered a symbol of communal harmony and anti-colonialism. A revolutionary career Udham Singh’s lifelong association with the Ghadar Party began in 1919 after he returned from his second stint in the British Indian Army in Mesopotamia. After serving for two years, he had merely Rs 200 to his name. This sense of betrayal at the hands of the British, alongside anger at the Jallianwala Bagh massacre, pushed Singh towards Ghadar revolutionaries. In Ghadar He quickly became one of their campaigners, distributing their revolutionary literature throughout Punjab’s villages. He opened a shop in Amritsar, which became the centre of his revolutionary activities. During this time, he also got in touch with the militant Babbar Akali movement and began organizing with them. However, it was during his time in the United States that he got deeply involved in the Ghadar movement and became one of its prominent activists. Singh illegally migrated to the US in 1924 via Mexico, eventually settling in San Francisco, the epicentre of the Ghadar movement in North America. He was sponsored by the Ghadar Party to visit [numerous cities in America] to give them a first-hand account of the Jallianwala Bagh massacre, to promote the growth of local branches of the party, and to raise funds. In addition to his involvement with the Ghadar Party, Singh also launched his own party, the Azad Party, as an offshoot of the Ghadar movement. The party had the twin objectives of campaigning for Indian freedom and collecting funds for revolutionary groups in India. Singh was firmly embedded in an international network of Ghadar revolutionaries. Aresst He arrived in India with the intention of accelerating and radicalising the anti-colonial struggle, bringing with him arms and Ghadarite propaganda. However, on 30th August 1927, he was arrested in Amritsar under the Arms Act for the possession of two revolvers, one pistol, ammunition, and copies of the prohibited paper, Ghadr-di-Gunj. Along with Ghadr-di-Gunj, other “seditious” literature was found in his possession Udham Singh was sentenced to five years’ imprisonment. Since he was a difficult prisoner for the authorities to manage, he was transferred from one jail to another. It was in one of those jails that he met Bhagat Singh. Udham Singh quickly befriended Bhagat Singh and was so captivated by his charisma that he called him his “guru” and “best friend”, and carried a photo of him in his wallet. In line with HSRA revolutionaries, Udham Singh too tried to use his trial as a platform to put forward his political and revolutionary ideas and undertook a forty-day-long hunger strike. Two years after being released from prison in 1931, Udham Singh left for England. A footloose labourer Throughout much of his life, Udham Singh was not only a revolutionary: he was also a migrant worker. After arriving in London in the autumn of 1934, Singh continued to work various working-class jobs. He worked as a peddler, a carpenter and as an electrician. In London, he also joined the Indian Workers Association (IWA), an organisation formed by Surat Ali, a communist and a trade unionist associated with the Communist Party of Great Britain. The IWA had the twin objectives of improving the conditions of Britain’s migrant working classes, alongside campaigning for India’s freedom. The assassination He is known as the “patient assassin” or the “lone assassin” who shot dead Michael O’Dwyer, the Lieutenant Governor of Punjab under whose administration the infamous Amritsar massacre took place and who later even endorsed Brigadier-General Dyer, the perpetrator of the killings. On July 31, 1940, Udham Singh was hanged for this assassination. Source: newsonair.gov.in Previous Year Question Q.1) Consider the following freedom fighters: (2022) Barindra Kumar Ghosh Jogesh Chandra Chatterjee Rash Behari Bose Who of the above was/were actively associated with the Ghadar Party? 1 and 2 2 only 1 and 3 3 only Monkey pox Vaccine Open in new  window Syllabus Prelims – Science and Technology Context: With the WHO declaring monkeypox as a Public Health Emergency of International Concern (PHEIC) and cases rising globally to around 19,179 in 78 countries as of July 27, governments around the world are initiating steps towards developing or even sourcing a vaccine against monkeypox. Are there vaccines for monkeypox? The monkeypox virus belongs to a family of viruses called orthopoxviruses, which is different from that of the coronaviruses. According to the WHO, it is a viral zoonosis — a virus transmitted to humans from animals — with symptoms similar, but less severe to smallpox. It is also an enveloped double-stranded DNA virus, unlike the RNA virus, that makes it far more stable and less prone to rapid mutations. There are two distinct genetic clades of the monkeypox virus: the central African (Congo Basin) clade and the West African clade. The Congo Basin clade has historically caused more severe disease and was thought to be more transmissible. Vaccine There is yet no dedicated monkeypox vaccine In 2019, the USFDA, approved the JYNNEOS vaccine for the prevention of smallpox, monkeypox and other diseases caused by orthopoxviruses, including vaccinia virus. How does JYNNEOS work? JYNNEOS, developed by Danish biotechnology company, Bavarian Nordic, contains a live vaccinia virus that does not replicate efficiently in human cells. The vaccinia virus is the smallpox virus but made incapable of replicating within the body. It is administered as two injections 28 days apart. The immune response takes 14 days after the second dose. The vaccine’s effectiveness was inferred only indirectly by comparing the immunogenicity of JYNNEOS to a licensed smallpox vaccine (ACAM2000) based on a laboratory test called the Plaque Reduction Neutralisation Test (PRNT). This test evaluates what quantity of the vaccine was needed to kill the virus made to replicate in a petri-dish. There is no data yet on JYNNEOS’ effectiveness. This is because smallpox has been eradicated and the monkeypox outbreak has risen too rapidly for a traditional phase 3 trial to have evaluated the vaccine’s effectiveness. What about India? Health Ministry officials said discussions were in progress with international and local companies for a vaccine. The genomic sequence of the Indian strain has a 85% match with the West African strain circulating globally. The ICMR has invited tenders from local companies to develop a vaccine. Orthopoxvirus Orthopoxvirus is a genus of viruses in the family Poxviridae and subfamily Chordopoxvirinae. Vertebrates, including mammals and humans, and arthropods serve as natural hosts. There are 12 species in this genus. Diseases associated with this genus include smallpox, cowpox, horsepox, camelpox, and monkeypox. The most widely known member of the genus is Variola virus, which causes smallpox. It was eradicated globally by 1977, through the use of Vaccinia virus as a vaccine. The most recently described species is the Alaskapox virus, first isolated in 2015. Must Read: Monkey Pox Source: The Hindu Previous Year Question Q.1) Consider the following statements: (2021) Adenoviruses have single-stranded DNA genomes whereas retroviruses have double-stranded DNA genomes. Common cold is sometime caused by an adenovirus whereas AIDS is caused by a retrovirus. Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.2) Which one of the following statements is not correct? (2019) Hepatitis B virus is transmitted much like HIV. Hepatitis B. unlike Hepatitis C does not have a vaccine. Globally, the number of people infected with Hepatitis B and C viruses arc several times more than those infected with HIV. Some of those infected with Hepatitis B and C viruses do not show the symptoms for many years. State Assemblies Sittings Open in new  window Syllabus Mains – GS 2 (Polity & Governance) In News: PRS Legislative Research, a New Delhi-based think tank released its study on the functioning of State Assemblies for 2021. Findings Kerala, which slipped to the eighth slot in holding the sittings of the State Assembly during the first wave of the COVID-19 pandemic in 2020, got back to the first place in 2021, with its House sitting for 61 days, the highest for any State. Despite enjoying the record of having the highest number of sittings during 2021 for any State legislature, Kerala had promulgated 144 ordinances, also the highest in the country last year. Odisha followed Kerala with 43 sitting days; Karnataka – 40 and Tamil Nadu – 34 days. Of the 28 State Assemblies and one Union Territory’s legislature, 17 met for less than 20 days. Of them, five — Andhra Pradesh, Nagaland, Sikkim, Tripura and Delhi — met for less than 10 days. Ordinance As for the ordinance route, which should be, according to the Supreme Court, used under exceptional circumstances, 21 out of 28 States promulgated ordinances last year. Andhra Pradesh with 20 ordinances and Maharashtra with 15 followed Kerala, wherein Bills replacing 33 ordinances became Acts. Passage of Bills A perusal of the manner of adoption of Bills by the State Assemblies would reveal that 44% of the Bills adopted by 28 State Assemblies were passed within a day of their introduction. Gujarat, West Bengal, Punjab and Bihar were among the eight States which passed all Bills on the day of introduction. On the contrary, five States — Karnataka, Kerala, Meghalaya, Odisha and Rajasthan — took more than five days to pass a majority of their Bills. In Kerala, 94% of the Bills were passed after at least five days of their introduction in the legislature. In respect of Meghalaya, it was 80% and in the case of Karnataka, 70%. Subjects Covered Of the subjects covered by the Bills passed in 2021, education accounted for 21% followed by taxation – 12%, local government – 10%, and land and law and order – 4% each. Source: The Hindu Daily Practice MCQs Daily Practice MCQs Q.1) Ramagundam floating Solar Power Plant, recently seen in news is located in which of the following state? Andhra Pradesh Telangana Karnataka Gujarat Q.2) Which of the below given pairs is/are correctly matched? Places in News Country Pingtan Islands China Oromia Ethiopia Kurung Kumey Myanmar Choose the correct code: 1 and 2 1 and 3 1, 2 and 3 2 and 3 Q.3) Consider the following statements about Shaheed Udham Singh He was the founder of the Azad Party, an offshoot of the Ghadar movement He called Bhagat Singh as his Guru In line with HSRA revolutionaries, Udham Singh tried to use his trial as a platform to put forward his political and revolutionary ideas. In London he was associated with Indian Workers Association (IWA). Choose the incorrect statements: 1 only 2 and 3 4 only None Comment the answers to the above questions in the comment section below!! ANSWERS FOR ’30th JULY 2022 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs. ANSWERS FOR 28th JULY 2022 – Daily Practice MCQs Answers- Daily Practice MCQs Q.1) – d Q.2) – b Q.3) – c table, td, th { border: 1px solid;} table { width: 100%; border-collapse: collapse;}

Baba’s Explainer

Baba's Explainer - Reviving BSNL

ARCHIVES Syllabus GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. GS-2: Inclusive growth and issues arising from it.  Context: In yet another effort to revive the state-owned telecom firm Bharat Sanchar Nigam Limited  (BSNL), the Union Cabinet on July 27 approved a ₹1.64–lakh crore package for its revival. The four-year turnaround plan includes both a cash component and a non-cash component. The revival package was announced with an aim to upgrade the operator’s network to 4G while de-stressing its balance sheet. What is the history of BSNL? BHARAT SANCHAR NIGAM LIMITED (BSNL) was incorporated on 15th september 2000. It is a 100% Govt. of India owned Public Sector Undertaking. It took over the business of providing of telecom services and network management from the erstwhile Central Government Departments of Telecom Services (DTS). The company provides telecom services throughout the country excluding Delhi & Mumbai. Mahanagar Telephone Nigam Limited (MTNL) was set up on 1st April 1986 by the Government of India for telecom development needs of Delhi, the political capital and Mumbai, the financial capital of India BSNL company has a vast experience in planning, installation, network integration & maintenance of switches & transmission networks. BSNL has a world class ISO 9000 certified Telecom Training Institute. Some of the objectives of the company are: Increase sales revenue with focus on subscriber retention & acquisition by way of strengthening marketing, quality of service and customer delivery. Strengthen company’s finances by gainful utilization of its assets through sharing / monetization of existing infrastructure like land, building and sharing of passive infrastructure like towers etc. Creating Wi-Fi Hot Spots and replacing Legacy wire line exchanges by Next Generation Network.Accelerate the pace of expansion of mobile & data services with up-gradation of technology. To explore opportunities in international telecom in developing markets. To become preferred service provider to the Government for reliable and secure service Network and to serve National security interests. What financial problems BSNL is facing? BSNL’s revenues were nearly ₹40,000 crore in March 2007, while Airtel’s revenues were only ₹18,420 crore. By 2009, BSNL’s profits had nosedived 81% and revenues fell 6% even as Airtel’s revenues grew by over ₹10,000 crore during 2008-09 and its profits increased to ₹7,859 crore. BSNL has run up losses of ₹50,000 crore over the last five years. The once dominant public sector company has been reduced to a mere footnote, due to years of political interference and typical bureaucratic style functioning. The new paradigm in telecom is data; and here, whoever gives the best experience will emerge the winner. Operators who are quick to understand consumer demands, and nimbly cater to them, will win. BSNL does not have a culture that puts customers at the centre. The demand is driven by device, content, access, application, storage, and security. An essential metric to assess the health of telecom service providers is ARPU, that is, average revenue per user. Bharti Airtel’s ARPU in the March-end quarter increased about 23%, while Reliance Jio’s ARPU increased 27% on a year-on-year basis. BSNL’s social sector duties prompt that all loss on capital assets is met from internal accruals only. Thus, it is unable to promptly respond to technological innovations in the market like its private peers, say a rapid transition from 4G to 5G. BSNL lost wireless subscribers at an average 0.30% each month, whereas Bharti Airtel and Reliance Jio combined had acquired wireless subscribers at an average 0.43% each month. There is also a difference in the number of Base Transceiver Stations (BTSs) held by the three companies. BTS is an equipment that sends and receives radio signals from mobile devices and routes them to other terminals in the network. Reliance Jio and Bharti Airtel held six and five-and-half times more BTSs, respectively, when compared with BSNL. Also, Reliance Jio and Bharti Airtel had almost five times more subscribers in rural areas compared with BSNL. Have there been attempts earlier to revive this government-owned telecom provider? There have been many attempts earlier to improve BSNL’s operations. For example, a committee headed by Sam Pitroda offered a 15-point plan to turn around the PSU, including trimming staff divesting 30 per cent adopting a managed services model for its various operations, inducting a chief executive from the private sector. The Sam Pitroda plan has not been acted upon. The Centre has also given financial aid to BSNL in the form of refunds on spectrum payments, soft loans, and grants to keep the struggling public sector company afloat. In 2019, the Centre had announced a ₹70,000 crore revival package in a bid to help the PSU survive. The package proposed the merger of Mahanagar Telecom Nigam Ltd (MTNL) and BSNL. It was argued that since the BSNL reaches out to populations in rural areas and MTNL is based in the metro cities of Mumbai and Delhi, combining their synergies would help acquire a pan-India footprint. However, the merger had been delayed owing to financial reasons, including the high debt of MTNL For helping spur operations, the Government had announced a capital infusion of ₹20,140 crore for acquiring spectrum. The overall package which was for MTNL and BSNL combined, paved the way for the two PSUs to raise long term-bonds for which the Centre provided sovereign guarantee. Why did they fail? No revival plan can succeed by just pumping in money. BSNL’s biggest problem is that it has multiple layers of decision making. This makes it a slow mover in a market which has the likes of Reliance Jio and Airtel. For example, the PSU still buys equipment through tenders where the lowest bidder wins. The best vendors in technology are not the cheapest. What is the latest package about? The 2022 package has three broad components. Infusing fresh capital for upgrading the state-owned operator’s services. Starting with the endeavour to upscale its services, BSNL would be allocated spectrum in 900/1800 MHz band administratively at the cost of ₹44,993 crore via equity infusion. Spectrum can be defined as invisible radio frequencies on which wireless signals travel, facilitating phone calls and internet usage The allocation would help BSNL increase as well as consolidate its serviceable bandwidth Thus, it would be able to provide high speed data utilising a vaster network presence, more importantly, in rural areas. Other than spectrum, in order to pursue its social objectives, the Government would provision ₹13,789 crore to the company to fund its operational viability gap in the commercially unviable rural wireline operations that it had undertaken between 2014-15 and 2019-20. Strengthening its stressed balance sheet The telecom department said the Centre will provide sovereign guarantee to BSNL and MTNL for raising long-term loans. They will be able to raise long-term bonds for an amount of Rs 40,399 crore. To further improve the balance sheet, AGR dues of BSNL amounting to Rs 33,404 crore will be settled by conversion into equity, and the government will provide funds to BSNL for settling the AGR/GST dues. The AGR refers to the fee-sharing mechanism that computes the share in revenues that the telecom service providers (TSPs) are required to pay the government as annual licence fee and spectrum usage charges. Further, BSNL will re-issue preference share of Rs 7,500 crore to the government. Augmenting its fibre network by merging Bharat Broadband Nigam Limited (BBNL) and BSNL. Why has the government decided to infuse money into a loss-making company? While the move to further support BSNL and not monetise it like Air India is in deviation from the government’s laid down privatisation policy, the case to keep the telecom company afloat has its genesis in three main strategies of the government. Rural Broadband Agenda: Nearly 36 per cent of BSNL’s optical fibre customers are in rural areas, and the operator assists the government in expanding to far-flung areas with low-income consumers for operations that are typically non-viable commercially. Boost Domestic Component Industry: Two, unlike private telecom operators, BSNL has had a heavy dependence on domestic component manufacturers — something that also helps foster a vendor base in the country. With BSNL launching 4G services and subsequently 5G, this will also take the domestic component industry along with it. Strategic Need in challenging areas: Lastly, the presence of BSNL’s network assets in border areas and left-wing extremism affected areas means that the government considers it a strategically important company for it to be privatised. Will the latest attempt involving a massive fund infusion of ₹1.64 lakh crore work? Is funding the only issue here? With these measures, the Centre expects that BSNL will be able to improve the quality of existing services, roll out 4G services, and become financially viable. It also expects that with the implementation of this revival plan, BSNL will turn-around and earn profit in 2026-27 (April-March). However, if BSNL wants to succeed, then it needs leaders with integrity who can establish transparent and effective governance policies. The Centre should also allow such leaders to be independent and take strategic decisions to transform the company. Employees who cannot align with the new realities of the telecom world need to exit. Marketing executives who cannot think of a customer-centric approach, technicians and engineers who cannot innovate for the future, staff who are occupying redundant positions, and top executives who cannot steer the company’s turnaround plan should be allowed to exit. The Centre has promised to hold BSNL accountable for improving revenues and changing the mindset to become customer focussed. BSNL has partnered with a training firm to ensure that 30,000 staff are geared towards making its customers happy. Is it important for BSNL to revive and thrive? India’s telecom consumers need BSNL as an effective counter to the fast-emerging duopoly in the telecom sector. A strong public sector telecom company will not only prevent the private players from increasing tariffs as an easy means to wriggle out of the ongoing financial stress but also ensure that even rural consumers access digital services. BSNL is also strategic for providing secure communications services to highly sensitive segments like the defence establishment and along the international border. Mains Practice Question – In the era of Privatisation, do you think it is prudent to provide financial packages to revive BSNL? Comment. Note: Write answers to this question in the comment section.  

Daily Prelims CA Quiz

UPSC Quiz – 2022 : IASbaba’s Daily Current Affairs Quiz 1st August 2022

For Previous Daily Quiz (ARCHIVES) - CLICK HERE The Current Affairs questions are based on sources like ‘The Hindu’, ‘Indian Express’ and ‘PIB’, which are very important sources for UPSC Prelims Exam. The questions are focused on both the concepts and facts. The topics covered here are generally different from what is being covered under ‘Daily Current Affairs/Daily News Analysis (DNA) and Daily Static Quiz’ to avoid duplication. The questions would be published from Monday to Saturday before 2 PM. One should not spend more than 10 minutes on this initiative. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” Important Note: Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)After completing the 5 questions, click on 'View Questions' to check your score, time taken, and solutions.To take the Test -Click Here

IASbaba’s TLP (Phase 2): UPSC Mains Answer Writing – General Studies 3 Questions [1st August, 2022] – Day 37

Hello Students  TLP has been an integral ingredient of success for many toppers and is no secret. In the ‘must do’ list for the civil services exam, TLP is by far the most popular initiative. The popularity stems from the unparalleled quality of questions and synopsis posted in TLP. We strive hard to ensure that you get the real feel of UPSC standards before you write the Mains. You already know the features of TLP. Just to reiterate briefly, in the TLP initiative, we post 5 questions daily for a certain number of weeks (11 for this one). We follow a micro plan that is designed to give you daily targets. The questions are from the day’s syllabus and also from current affairs and you are expected to write the answers and post them on the portal. This year onwards TLP will have a Dedicated Portal for Focused Preparation (tlpmains.iasbaba.com). There will be a separate dedicated portal similar to (The RaRe Series) which students loved and appreciated. The Portal will help you stay focused and keep your preparation streamlined. The Registration link for the dedicated portal is given at the end of the post. We are charging a token amount of 10/- for registration to the dedicated portal. We are doing it because we want to create a community of sincere aspirants who are focused and motivated till the Mains Examination. Please don’t take it otherwise. It is our honest effort to give you the best and at the same time expect students to come with the same energy and dedication to the dedicated platform specially designed for YOU! Join our bandwagon, you won’t regret it. UPSC 2023 Aspirants are encouraged to participate as well. Register Here - CLICK HERE  To Know More About TLP 2022 (Phase 2) - CLICK HERE To Access Day 37 Questions - CLICK HERE  P.S: The review from IASbaba will happen from the time the question is posted till 10 pm every day. We would also encourage peer reviews. So friends get actively involved and start reviewing each other’s answers. This will keep the entire community motivated. All the Best 

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[MOST AWAITED COURSE] ILP 2023 – INTEGRATED LEARNING PROGRAM – The Most Comprehensive Self-Study Program recommended by Toppers for UPSC 2023 – Batch 3’ Starts 17th August!

Dear Students We are back with the 3rd batch of the Most Awaited Programme – Integrated Learning Programme (ILP) 2023. ILP has been helping hundreds of rankers every year to achieve their dream of getting into Civil Services. This year as well ILP had helped many aspirants including Rank 58 – Divya Shakti, Rank 134 – Sam Varghese, Rank 169 – Ankita Mishra, Rank 189 – P K Siddharth Kumar and many more.Read Complete Details -> Click Here

Baba’s Explainer

Baba's Explainer - US Fed Reserve Hike

ARCHIVES Syllabus GS-3: Economy & challenges GS-2: International Events & its impact on India Context: In its continuing bid to cool down raging inflation in the United States — at 9.1% in June, the inflation rate is at a four-decade high — the Federal Reserve or Fed (US’ central bank) decided to raise the Federal Funds Rate target by another 75 basis pushing the rate from zero to almost 2.5% now. What is the Federal Funds Rate (FFR)? The FFR is the interest rate at which commercial banks in the US borrow from each other overnight (recall call money rate) The US Fed can’t directly specify the FFR but it tries to “target” the rate by controlling the money supply. As such, when the Fed wants to raise the prevailing interest rates in the US economy, it reduces the money supply, thus forcing every lender in the economy to charge higher interest rates. The process starts with commercial banks charging higher to lend to each other for overnight loans. Why is the Fed tightening money supply? This is called monetary tightening, and the Fed (or any other central bank, for that matter) resorts to it when it wants to rein in inflation in the economy. By decreasing the amount of money, as well as raising its price (the interest rate), the Fed hopes to reduce the overall demand in the economy. Reduced demand for goods and services is expected to bring down inflation. What are the risks of monetary tightening? Aggressive monetary tightening — like the one currently underway in the US — involves large increases in the interest rates in a relatively short period of time, and it runs the risk of creating a recession. The most common definition of recession requires the GDP of a country to contract in two successive quarters. Contracting GDP typically results in job losses, reduced incomes, and reduced consumption. Since the US GDP has already contracted by 1.6% during the first quarter (January, February and March) of 2022, a contraction in the second quarter will imply the US is in recession This is called a hard-landing of the economy as against a soft landing (which essentially refers to monetary tightening not leading to a recession). The chances of a soft-landing for the US exist but are extremely low. How have other countries reacted to US hiking interest rate? In what is being seen as a reverse currency war, most central banks across the world are trying to raise their interest rates to counter the Fed’s actions and ensure their respective currency claws back value against the dollar. There are three key terms that one is likely to hear repeatedly in the coming days: Yield inversion, soft-landing and reverse currency war. Bond yield curve inversion A yield curve illustrates the interest rates on bonds of increasing maturities. An inverted yield curve occurs when short-term debt instruments carry higher yields than long-term instruments of the same credit risk profile. Inverted yield curves are unusual since longer-term debt should carry greater risk and higher interest rates, so when they occur there are implications for consumers and investors alike. An inverted yield curve is one of the most reliable leading indicators of an impending recession. Soft Landing A soft landing is a cyclical slowdown in economic growth that avoids recession. A soft landing is the goal of a central bank when it seeks to raise interest rates just enough to stop an economy from overheating and experiencing high inflation, without causing a severe downturn. Soft landing may also refer to a gradual, relatively painless slowdown in a particular industry or economic sector. But when the actions of the central bank bring about a recession, it is called a hard-landing. Reverse Currency War A flip side of the US Fed’s action of aggressively raising interest rates is that more and more investors are rushing to invest money in the US. This, in turn, has made the dollar become stronger than all the other currencies. Every central bank is trying to figure out ways to counter the US Fed and raise interest rates themselves in order to ensure their currency doesn’t lose too much value against the dollar. That’s because a currency which is losing value to the dollar, on the other hand, finds that it is getting costlier to import crude oil and other commodities that are often traded in dollars. But raising the interest rate is not without its own risks. Just like in the US, higher interest rates will decrease the chances of a soft-landing for any other economy. What is the outlook for the US economy? The US economy is facing a curious situation. One the one hand, it faces an inflation rate that is at a four-decade high and, on the other, its unemployment rate is at five-decade low However, aggressive monetary tightening of the kind being witnessed will likely result in a recession sooner rather than later. The US inflation rate is at over 9% and the Fed’s target inflation rate is 2% — that’s a gap of 7 percentage points. Historically, every time the Fed has tried to bring down inflation by more than 2 percentage points, the US has witnessed a recession. The ongoing inversion of the bond yield curve is another robust predictor of a recession in the offing. The yields on 2-year, 5-year and 10-year US bonds were 2.97%, 2.83% and 2.78%, respectively. What is the likely impact on India? News of a hike in interest rate in the US leads not only to an outflow of funds from equities into US treasury bonds, but also to an outflow of funds from emerging economies (like India) to the US. The rupee is also expected to come under pressure as the dollar strengthens. In the latest — July update of the — World Economic Outlook, the IMF has downgraded the growth projections for the US, China and India. “Downgrades for China and the United States, as well as for India, are driving the downward revisions to global growth during 2022–23, which reflect the materialization of downside risks highlighted in the April 2022 World Economic Outlook,” it states. A global slowdown is unlikely to have any positives for India apart from some relief in crude oil prices. The IMF has knocked off almost a full percentage point each (0.8%, to be precise) off India’s GDP projections for the current year and the next. “For India, the revision reflects mainly less favorable external conditions and more rapid policy tightening,” explains the IMF. Mains Practice Question – How does US Fed rate hike impact the global economy? Note: Write answers to this question in the comment section.