Syllabus:

• Prelims & Mains – ECONOMY

Context: The rupee is hitting fresh lows against the US dollar each day, yet its exchange rate has scaled an all-time-high in “real effective” terms.

Background: –

• Real effective exchange rate (REER) is a measure of a currency’s value against its trading partners, adjusted for inflation. 

Key takeaways

• The real effective exchange rate (REER) index of the rupee touched a record 108.14 in November, strengthening by 4.5 per cent during this calendar year, according to the latest Reserve Bank of India (RBI) data.
• The REER measures the rupee’s value vis-à-vis not only the dollar, but other global currencies as well. In this case, it is a weighted average of the rupee’s exchange rate against a basket of 40 currencies of countries that account for about 88 per cent of India’s annual exports and imports. The REER also adjusts for inflation differentials between India and each of these trading partners.

• The rupee’s REER — with 2015-16 as the base year — fell from 105.32 in January 2022 to 99.03 in April 2023. But since then, it has been on an appreciating trajectory.
• The main reason for the divergence — the rupee’s simultaneous weakening and strengthening — has to do with the dollar’s behaviour over the past three months, especially post Trump’s victory.
• In other words, the rupee isn’t weakening as much as the dollar is strengthening — against all currencies. The dollar is strengthening because of Trump’s public pronouncements favouring tariff hikes, income tax cuts and deportations of illegal immigrants. 
• From a longer timeframe, the rupee has, since the start of 2022, dipped against the dollar (from 74.30 to 85.19), euro (84.04 to 88.56) and pound (100.30 to 106.79), while firming up only against the yen (0.6454 to 0.5425). Despite that, its REER has increased. And that is a result of inflation in India being higher relative to its major partners.
• Assuming the rupee was “fairly” valued in 2015-16, when the REER was set to 100, any value above 100 signifies overvaluation and the exchange rate not falling enough to offset higher domestic inflation. The rupee is, to that extent, is overvalued today, making imports cheaper and exports less competitive.

Source: Indian Express

Syllabus:

• Prelims & Mains – CURRENT EVENT

Context: The Delhi High Court directed that the Aam Aadmi Party government in Delhi needed to sign an MoU with the Ministry of Health and Family Welfare before January 5 for implementation of the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), irrespective of imposition of Model Code of Conduct in the run-up to the Assembly elections.

Background: –

• PM-ABHIM is a Central government scheme that aims to strengthen public health infrastructure to respond to future pandemics and outbreaks.

Key takeaways

• Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) is a Centrally Sponsored Scheme (CSS) with some Central Sector Components (CS) which has an outlay of Rs. 64,180 Crores for the scheme period (2021-22 to 2025-26).
• The measures under the scheme focus on developing capacities of health systems and institutions all levels viz. primary, secondary and tertiary level and on preparing health systems in responding effectively to the current and future pandemics/disasters. 
• The objective of the scheme is to fill critical gaps in health infrastructure, surveillance and health research – spanning both the urban and rural areas.

The following are the components under CS Component of the scheme: 

• 12 Central Institutions as training and mentoring sites with 150 bedded Critical Care Hospital Blocks (CCBs); 
• Strengthening of the National Centre for Disease Control (NCDC), 5 New Regional NCDCs and 20 metropolitan health surveillance units; 
• Expansion of the Integrated Health Information Portal to all States/UTs to connect all public health labs; 
• Operationalization of 17 new Public Health Units and strengthening of 33 existing Public Health Units at Points of Entry, that is at 32 Airports, 11 Seaports and 7 land crossings; 
• Setting up of 15 Health Emergency Operation Centres and 2 container based mobile hospitals; and 
• Setting up of a national institution for One Health, 4 New National Institutes for Virology, a Regional Research Platform for WHO South East Asia Region and 9 BioSafety Level III laboratories. 

Following support is provisioned for States/UTs under CSS component of the scheme: 

•  Construction of 17,788 rural Health and Wellness Centres (HWCs).
• Support for 11,024 urban Health and Wellness Centres in all the States with the focus on slum like areas.
• Establishing 3382 Block Public Health Units (BPHUs) at block levels. 
• Setting up of Integrated Public Health Labs (IPHLs) in 730 districts. 
• Establishing Critical Care Hospital Blocks (CCBs) in 602 districts (with population more than 5 lakhs) and with referral linkages in other districts.

Source: Indian Express

Syllabus:

• Prelims & Mains – POLITY

Context: The Centre recently amended the Conduct of Election Rules to restrict access for the public to a section of poll documents. This was done by the Union Law Ministry following a recommendation from the Election Commission (EC).

Background:

• While the EC said the amendment aims to restrict access to electronic data, the Opposition and transparency activists have been up in arms, branding it as an attack on the right to information and electoral freedom.

Key takeaways

• The Conduct of Election Rules,1961, is a set of rules which provide for provisions on how to conduct the elections as per the Representation of People Act.
• Rule 93(2)(a) of the 1961 Conduct of Election Rules had earlier stated that “all other papers relating to the election shall be open to public inspection” but after the amendment, it reads, “all other papers as specified in these rules relating to the election shall be open to public inspection.”

Why has the amendment been brought in now?

• The move comes after a recent direction to the EC by the Punjab and Haryana High Court to share all documents related to the Haryana Assembly election, including treating CCTV footage also as permissible under Rule 93(2) of the Conduct of Election Rules, to a petitioner.
• An official of the Election Commission explained that the rule previously mentioned election papers but did not explicitly refer to electronic records, leading to ambiguity. To address this and considering concerns over the violation of voting secrecy and the potential misuse of CCTV footage from polling stations, particularly through artificial intelligence, the rule was amended. The official noted that sharing such footage could have serious consequences, especially in sensitive regions like Jammu and Kashmir, where voters’ lives might be at risk.

Why are the transparency activists protesting?

• RTI activists have termed the move as a setback to transparency. Rule 93 is akin to the Right to Information Act as far as elections are concerned and, any change hurts the citizen’s right to know about the process.
• The amendment appears to aim at restricting citizens access to a wide range of documents generated during elections. Many of these documents are not explicitly mentioned in the Conduct of Election Rules but are referenced in handbooks and manuals published periodically by the Election Commission. These records include reports submitted by Election Observers, scrutiny reports from Returning Officers after polling day, and Index Cards sent to the Election Commission following the declaration of results, which contain detailed election statistics.
• Given the controversy surrounding voter turnout in recent Lok Sabha and Assembly elections, access to the Presiding Officers’ diaries, which include detailed data about voter turnout at various times during polling day and the number of tokens distributed to voters in the queue at the scheduled closing hour, is not specifically mentioned in the Conduct of Election Rules. Yet access to such documents is crucial to assess the fairness of elections. 

Source: The Hindu

Syllabus:

• Prelims – CURRENT EVENT

Context: The centenary celebrations of the historic 1924 Belgaum Congress session was inaugurated on December 26 in Belagavi (as Belgaum is now called).

Background: –

• The session remains historic because it is the only one chaired by Mahatma Gandhi (39th All-India Congress session). The leader, who arrived from South Africa became a Congress members in 1915, and became president of the all-India session after nine years. 

Key takeaways

• Held from December 26 to December 28, 1924, in Belgaum (now Belagavi, Karnataka), this session marked a crucial phase in India’s struggle for independence.
• Key Features and Importance:
  • Gandhi’s Leadership: This session highlighted Mahatma Gandhi’s influence within the Congress. It allowed him to address growing differences within the party and reaffirm his commitment to non-violence and Swaraj (self-rule).
  • Resolution on Unity: The session emphasized Hindu-Muslim unity, a theme central to Gandhi’s vision for a united struggle against colonial rule.
  • Focus on Grassroots Movements: Gandhi advocated for strengthening grassroots movements, including promoting khadi and boycotting foreign goods, as part of the larger non-cooperation strategy.
  • Strategic Recalibration: Coming after Gandhi’s release from prison following the Non-Cooperation Movement, the session provided an opportunity to reassess the movement’s direction and strategies.
  • As chairman of the session, Gandhiji reduced the annual membership fee by 90% and urged all party members to realise that the Congress was a movement, and that they were all social workers, working not only for political liberation from the British, but also from social evils like untouchability.
  • Apart from the routine sessions, the Belgaum session held separate conferences against untouchability and in favour of khadi and village industries, students, municipal administration, and formation of States on linguistic grounds.

Source: The Hindu

Syllabus:

• Prelims – CURRENT EVENT

Context: Former Prime Minister Manmohan Singh, 92, passed away.

Background: –

• Dr. Singh, who was PM for two terms in the Congress-led United Progressive Alliance government from 2004 to 2014, had been in poor health for the past few months

Key takeaways

• Manmohan Singh (1932–2024) was a distinguished economist and statesman, renowned for his pivotal role in transforming India’s economic landscape.
• Early Life and Academic Pursuits
  • Born on September 26, 1932, in Gah, Punjab (now in Pakistan), Singh’s academic brilliance led him to the University of Cambridge and the University of Oxford, where he earned his doctorate in economics.

Architect of Economic Reforms

• As Finance Minister from 1991 to 1996, Singh introduced groundbreaking economic reforms that transitioned India from a closed, state-controlled system to a more liberalized and globally integrated economy. 
• Facing a severe balance of payments crisis, he implemented policies that reduced trade barriers, encouraged foreign investment, and deregulated domestic markets, setting the stage for India’s rapid economic growth in subsequent decades.

Prime Ministerial Tenure (2004–2014)

• Singh served as Prime Minister from 2004 to 2014, becoming the first Sikh to hold the position.
• Economic Growth: Under his leadership, India experienced substantial GDP growth, lifting millions out of poverty and expanding the middle class.
• Social Programs: Singh’s government launched key initiatives, including the National Rural Employment Guarantee Act (NREGA) and the National Rural Health Mission, aiming to improve employment and healthcare access for rural populations. Other notable achievements include : 
  • Right to Information (RTI) Act: Enacted in 2005, this act empowered citizens to access information from public authorities, promoting transparency and accountability.
  • National Food Security Act: Introduced in 2013, this act ensured subsidized food grains to approximately two-thirds of India’s population.
• US-India Civil Nuclear Agreement: In 2008, Singh finalized a landmark civil nuclear deal with the United States, ending India’s nuclear isolation and enabling access to nuclear technology and fuel for civilian purposes. 

Source: The Hindu

Q1.) Which of the following statements about the Belgaum Congress Session of 1924 is/are correct?

1. It was the only Congress session presided over by Mahatma Gandhi.
2. The session focused on promoting khadi and resolving differences within the Congress.
3. The session rejected the idea of Swaraj.

Options:
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2, and 3

Q2.) Which of the following initiatives are associated with Dr. Manmohan Singh during his tenure as Prime Minister?

1. National Rural Employment Guarantee Act (NREGA)
2. Right to Information (RTI) Act
3. National Food Security Act
4. Goods and Services Tax (GST)

Options:
a) 1 and 2 only
b) 1, 2, and 3 only
c) 2, 3, and 4 only
d) 1, 3, and 4 only

Q3.) Consider the following statements about the Real Effective Exchange Rate (REER):

1. REER measures a currency’s value against a basket of currencies, adjusted for inflation.
2. A REER value above 100 indicates overvaluation of the currency.
3. The strengthening of the dollar has no impact on REER calculations.

Options:
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2, and 3

Comment the answers to the above questions in the comment section below!!

ANSWERS FOR ’  Today’s – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs

Q.1) – a

Q.2) – c

Q.3) – b