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CURRENT AFFAIRS – 04/01/2024
- CURRENT AFFAIRS – 04/01/2024
- Higher borrowing by states to widen yield spread with G-sec
- How will the RBI’s revised guidelines benefit customers?
- America’s Climate Failures
- 50% of cybercrime plaints originate in China, pockets of Cambodia and Myanmar
- 55% of patients given antibiotics only as a preventive measure, says survey
- SpaceX’s Falcon9 to launch India’s GSAT20
- The blood management system needs a fresh infusion
- The dispute on India’s debt burden
CURRENT AFFAIRS – 04/01/2024
Higher borrowing by states to widen yield spread with G-sec
(General Studies- Paper III)
Source : The Indian Express
Six Indian states, namely Andhra Pradesh, Karnataka, Gujarat, Punjab, Rajasthan, and Bihar, entered the market for borrowing Rs 16,000 crore in the first weekly auction of January-March.
- This has led to a widening spread of over 50 basis points (bps) between the yields on state development loans (SDL) and the central government’s G-sec (government securities).
- Analysts anticipate further widening of the yield spread as states plan record borrowings of Rs 4.13 lakh crore in the Q4 FY24, contributing to concerns about an increased supply of dated securities.
Key Highlights
- Factors Influencing Yield Spread:
- The Q4 FY24 SDL calendar indicates a significant increase in borrowings, especially in the 15-year to 50-year segment, contributing to the steepening of the yield curve.
- The gross supply from both states and the Centre, concentrated in the mentioned segment, is expected to be around 35% of the total Q4 FY24 supply.
- Higher supply of state government securities and G-secs is likely to weigh on state government bonds, leading to an increase in borrowing costs for states compared to the Centre.
- Market Impact:
- The weighted average cut-off of state government securities rose by 8 bps to 7.71% in the recent auction, reflecting an increase in borrowing costs.
- The spread between the cut-off of 10-year state government securities and the 10-year G-sec yield widened to 53 bps, the highest since January 2022, indicating potential challenges in state borrowing.
- Economists anticipate further widening of spreads between SDLs and G-sec due to the substantial supply of state government securities.
- If weekly State Government Securities (SGS) auctions in Q4 FY2024 align with indicated amounts, the spread between 10-year SGS and 10-year G-sec yields may reach 50-60 bps, particularly in February-March 2024.
- The Reserve Bank of India (RBI) recently released an indicative calendar of market borrowings by Indian states and union territories for the last quarter of the financial year.
- A substantial record borrowing of Rs 4.13 lakh crore has been proposed, marking a 37.4% YoY increase.
- Economists had initially estimated Q4 borrowing to be around Rs 3.4-3.5 lakh crore.
- Karnataka, West Bengal, Madhya Pradesh, and Tamil Nadu are major contributors, with Karnataka and West Bengal accounting for nearly 80% of the incremental borrowing amount.
- However, experts suggest that the actual borrowing may be lower than indicated due to various factors.
- Factors Influencing Borrowing:
- ICRA notes that some states might have based their Q4 borrowing estimates by subtracting their actual issuance in the preceding nine months from the total permitted borrowing for FY2024 by the Government of India.
- Additional funds released under the capex loan scheme in Q4 and tax devolution could potentially limit total state borrowing.
- Recent Borrowing Trends:
- After a 10-quarter gap, actual state borrowings exceeded the indicated amount by 4% or Rs 8,700 crore in October-December.
- Total state borrowing from April-December reached Rs 6 lakh crore, representing 90% of the indicated amount for this period (Rs 6.7 lakh crore), compared to 70% in the previous year (Rs 4.6 lakh crore vs. Rs 6.5 lakh crore).
- Factors Driving Higher Indicated Borrowing:
- Despite the Centre providing two advance instalments of tax devolution to states/UTs by December-end, several factors are contributing to higher indicated borrowing.
- Slower nominal GDP growth, moderation in indirect tax and own tax revenue of states, and reduced grants from the Centre are seen as key factors influencing states to propose higher borrowing.
- Grants from the Centre have experienced a 26.4% YoY decline in FY24 (Apr-Oct), deviating from the full-year budgeted growth of 24.6% in FY24.
- Impact of Grant Reduction:
- The decline in grants from the Centre is attributed to the discontinuation of sharing GST cess revenue with states since June 2022.
- Data from the Centre’s Department of Expenditure indicates a 31% YoY decline in FY24 (Apr-Nov), led by reductions in revenue deficit grants and grants for rural bodies.
Understanding Yield and Widening of Spread
- In the context of bonds, “yield” refers to the annual rate of return an investor can earn on a bond, expressed as a percentage of its current market price.
- It represents the interest income generated by the bond.
- The yields on G-secs are crucial indicators for the financial markets and the economy.
- Investors monitor G-sec yields as they reflect the prevailing interest rates in the market and provide insights into the government’s borrowing costs.
- When G-sec yields rise, it often indicates increased interest rates in the broader economy, while falling yields may suggest a decline in interest rates.
- Widening Spread:
- The “spread” refers to the difference in yields between two types of bonds.
- A “widening spread” means that the difference between the yields of the mentioned SDLs and G-secs is increasing.
What is a G-Sec?
- “G-Sec” stands for Government Securities.
- These are debt instruments issued by the government to raise funds and manage its financial needs.
- Government securities are considered one of the safest forms of investment because they are backed by the sovereign guarantee of the issuing government.
- Investors, including individuals, financial institutions, and foreign entities, can buy and trade these securities in the financial markets.
- Key features of G-Secs include:
- G-Secs are issued by the central government or state governments to meet their fiscal requirements.
- G-Secs typically pay periodic interest, known as the coupon, to the bondholders.
- The interest rate is fixed at the time of issuance, providing a predictable income stream for investors.
- Government securities have various maturity periods, ranging from short-term (less than one year) to long-term (up to 40 years or more).
- Investors can choose securities based on their investment horizon and risk tolerance.
- G-Secs are actively traded in the financial markets, providing liquidity to investors.
- They can be bought or sold on stock exchanges or over-the-counter (OTC) markets.
- Since G-Secs are backed by the government, they are considered virtually risk-free in terms of default.
- However, they are subject to interest rate risk and market price fluctuations based on changes in prevailing interest rates.
- Government securities come in various forms, including Treasury Bills (T-Bills), which have short-term maturities, and dated securities or bonds, with longer maturities.
How will the RBI’s revised guidelines benefit customers?
(General Studies- Paper III)
Source : The Indian Express
The Reserve Bank of India (RBI) has introduced revised guidelines for categorizing accounts and deposits as inoperative and unclaimed by banks.
- Account holders can now reactivate their inoperative accounts and unclaimed deposits by submitting updated Know Your Customer (KYC) documents at any branch of the bank, including non-home branches.
Key Highlights
- Criteria for Inoperative Accounts:
- A savings or current account is considered inoperative if no “customer induced transactions” occur in the account for over two years.
- Customer induced transactions include financial transactions initiated by the account holder, non-financial transactions, or KYC updates conducted physically or through digital channels like internet or mobile banking applications.
- Approximately Rs 1-1.30 lakh crore is estimated to be lying in inoperative bank accounts.
- Balances in savings/current accounts not operated for 10 years or term deposits unclaimed within 10 years from maturity are categorized as “unclaimed deposits.”
- As of March 2023, unclaimed deposits of Rs 42,270 crore were reported to be with banks.
- Key Points from Revised Guidelines:
- Banks are mandated to conduct at least an annual review for accounts with no customer induced transactions for over a year.
- In cases where there is no explicit mandate to renew term deposits, banks should review such accounts if customers haven’t withdrawn proceeds after maturity or transferred them to their savings/current accounts to prevent them from becoming unclaimed.
- Banks must communicate with account holders through letters, emails, or SMS, notifying them of no operations in their accounts in the last year.
- Alerts should explicitly mention that the account may become ‘inoperative’ if no operations occur in the next year, requiring submission of fresh KYC documents for reactivation.
- The Reserve Bank of India (RBI) has outlined specific criteria for classifying accounts as inoperative, focusing on customer-induced transactions.
- However, certain types of accounts are exempt from the ‘inoperative’ classification.
- Criteria for Classifying Inoperative Accounts:
- Only customer-induced transactions, initiated by the account holder, are considered for determining inoperativeness.
- Transactions such as standing instructions (SI) or auto-renewal instructions, provided by the customer, are treated as customer-induced transactions.
- Bank-induced transactions, initiated by the bank (e.g., charges, fees, interest payments, penalties, and taxes), are not considered when classifying an account as inoperative.
- Zero balance accounts opened for beneficiaries of Central/State government schemes and students receiving scholarships are exempt from the ‘inoperative’ classification.
- The exemption is based on the purpose of opening the account.
- Banks are instructed to segregate such exempt accounts in their core banking solution (CBS) to prevent the application of the ‘inoperative’ status due to non-operation for more than two years.
- The exemption aims to address challenges faced by Central and State governments in crediting cheques or direct benefit transfers or electronic benefit transfers or scholarship amounts to these exempted accounts.
- Reactivation Methods:
- Banks are directed to facilitate the Know Your Customer (KYC) updation for the reactivation of inoperative accounts and unclaimed deposits.
- The facility for KYC updation should be made available at all branches, including non-home branches.
- Video-Customer Identification Process (V-CIP) can be utilized for reactivation if requested by the account holder, contingent upon the bank offering V-CIP as a service.
- Reactivation of inoperative accounts or unclaimed deposits should strictly adhere to KYC guidelines set by the RBI.
- The RBI explicitly states that no charges should be imposed for the activation of inoperative accounts.
- Penalty on Non-Maintenance:
- Banks are prohibited from levying penal charges for non-maintenance of minimum balances in accounts classified as inoperative.
- The RBI emphasizes that interest on savings accounts should be credited regularly, regardless of whether the account is in operation or classified as inoperative.
America’s Climate Failures
(General Studies- Paper III)
Source : The Indian Express
The recently concluded COP28 climate meeting in Dubai witnessed a notable discrepancy in financial commitments to the Loss and Damage Fund, with the United States making a modest contribution of US$ 17.3 million.
- In contrast, the UAE and Germany committed US$ 100 million each, while France and Italy pledged about US$ 110 million each.
- Even smaller nations like Ireland, Denmark, and Norway exceeded the United States’ contribution.
- This financial discrepancy underscores the longstanding issue of the United States lagging in its climate action responsibilities.
Key Highlights
- The United States, holding the largest share of historical emissions and boasting the world’s biggest economy, is expected to play a leading role in global climate action.
- However, its recent contribution to the Loss and Damage Fund falls short of expectations.
- The United States has not significantly reduced its emissions, and its historical track record includes not ratifying the Kyoto Protocol, leading to a lack of adherence to assigned emission reduction targets.
- While the Paris Agreement was negotiated with significant input from the United States, the country initially withdrew from the agreement.
- Although it has since re-joined, its contributions to climate initiatives have been notably modest.
- Global Impact:
- The lack of robust climate action and financial commitments from the United States is considered a significant factor contributing to the world falling short of meeting its 2030 climate targets.
- The US contribution of US$ 17.3 million to the Loss and Damage Fund contrasts starkly with commitments from other nations, sparking concerns about the country’s commitment to addressing climate-related challenges.
- Despite China’s recent surge in emissions, the United States maintains the largest share of historical emissions, surpassing 20% of global carbon dioxide emissions since 1850.
- The United States holds over 20% of historical emissions, with more than 30% until the early 1990s.
- This historical responsibility led to expectations for developed countries, known as Annex-I countries, to take the lead in emission reduction efforts.
- The 1997 Kyoto Protocol assigned emission reduction targets to Annex-I countries.
- However, the US never ratified the protocol and was not bound by these targets.
- The UNFCCC assessment reveals that by 2020, Annex-I countries collectively reduced emissions by about 25%, but the US contributed only a minimal 0.4% reduction.
- US Emission Trends:
- The US claims to have met its 2020 emission targets based on a 17% reduction from a 2005 baseline, unlike most Annex-I countries using a 1990 baseline.
- However, emissions in 2019 were approximately 6% higher than 1990 levels, and without the Covid-induced reduction in 2020, they would likely have exceeded 1990 levels in 2021.
- The UN Environment Programme’s Emissions Gap Report indicates that US emissions in 2022 were estimated to be 1.6% higher than the previous year, highlighting challenges in meeting emission reduction targets.
- While other Annex-I countries, including Canada and Turkey, face challenges, the US alone emits about four times the combined emissions of the eight worst-performing countries.
- US Emission Reduction Targets:
- The US commitment to reduce emissions by 50-52% by 2030 on 2005 levels translates to less than 46% from the 2019 baseline.
- This falls short of the ambitious global targets needed to limit temperature rise and is viewed as the minimum effort rather than a leadership role.
- Despite the US passing the Inflation Reduction Act to enable emissions reductions, current policies and measures may only result in a 20% reduction from the 2005 baseline by 2030.
- The success of achieving the 50-52% target remains uncertain.
- The US approach of advocating for equal responsibility for all countries in climate actions disregards the established principles of equity and justice enshrined in the UNFCCC and the Paris Agreement.
- This approach challenges the differentiation between developed and developing countries, creating tension in international climate negotiations.
- Global Target Implications:
- If the US achieves only the minimum target, the likelihood of missing the global emission reduction target for 2030 increases.
- This would necessitate every country, including developing nations, to match the US effort, violating established principles of equity and justice.
- Developing countries find themselves actively defending the principle of differentiation between developed and developing nations in climate negotiations, as the US pushes for equal responsibility, consuming significant negotiating energy.
- While Saudi Arabia faced criticism for obstructing the mention of fossil fuel phase-out in the final outcome of the Dubai meeting, the United States largely escaped scrutiny despite being the largest producer of fossil fuels.
- The United States, a major fossil fuel producer, relies on oil, natural gas, and coal for more than 80% of its energy needs.
- This pattern has persisted for the last 30 years.
- Despite being a fossil fuel guzzler, the U.S. has faced less international pressure compared to nations like India.
- The focus on India’s coal usage has been more pronounced, while the U.S. continues its dominance in fossil fuel production.
- Until 2015, the U.S. and India were comparable in coal consumption.
- In recent years, the U.S. has reduced coal reliance slightly, compensating with increased use of natural gas and oil, along with a partial shift to renewable energy.
- India’s Fossil Fuel Record:
- India’s approach to fossil fuels surpasses that of the U.S. Data from the International Energy Agency indicates that around 27% of India’s energy needs come from non-fossil sources, contrasting with the U.S., where less than 20% is derived from non-fossil sources.
- India’s commitment to renewable energy sources contributes to its relatively better record, aligning with global efforts to reduce dependence on fossil fuels.
- S. Contribution to GCF:
- The U.S. committed $3 billion to the GCF for the next four-year funding cycle during the Dubai meeting, making it the largest contribution from any single country.
- However, the U.S. had promised $3 billion for the first round of capitalization and delivered only $2 billion.
- The U.S. is uniquely positioned to mobilize financial resources for climate actions globally.
- The estimated annual financial requirement for climate actions is in the trillions of dollars, and the $3 billion contribution, while significant, remains insufficient to meet the overall needs.
- Unmet $100 Billion Target:
- In 2009, the U.S. proposed mobilizing $100 billion per year by developed countries from 2020 onwards for climate finance.
- However, this target has not been achieved, with debates on double-counting, repurposing, and greenwashing.
- Developing countries argue that the target was not reached in 2022.
- Concerns on Adaptation Financing:
- Despite the commitment in Glasgow to double financial flows to adaptation, a recent Adaptation Gap Report revealed a year-on-year decline in funds for adaptation activities.
- The U.S., among other countries, has faced criticism for the lack of provisions for separate financial commitments in the Global Goal on Adaptation decision reached in Dubai.
50% of cybercrime plaints originate in China, pockets of Cambodia and Myanmar
(General Studies- Paper III)
Source : TH
Rajesh Kumar, CEO of the Indian Cyber Crime Coordination Centre (I4C), Ministry of Home Affairs (MHA), revealed in a press conference that cybercrime complaints in India have surged, with approximately 50% originating from China, Cambodia, and Myanmar.
- The national cybercrime helpline receives an average of 5,000 complaints daily.
Key Highlights
- Financial Impact:
- From April 1, 2021, to December 31, 2023, cyber fraud in India resulted in a financial loss of ₹10,319 crore.
- In 2023 alone, 15.5 lakh cybercrime complaints were registered, a significant increase from 26,049 complaints in 2019.
- Over the past five years, India received 31 lakh cybercrime complaints, leading to FIRs filed in 66,000 cases.
- It was highlighted that an estimated 40-50% of the cyber complaints originated from outside India, particularly from criminal gangs operating in China, Cambodia, and Myanmar.
- Operational Response:
- Victims of financial fraud and online crimes in India can register complaints through cybercrime.gov.in or the 1930 helpline number.
- The 1930 helpline is operational across all 36 States and Union Territories.
- If victims report financial fraud within an hour, banks can promptly block the associated transactions, aiding in mitigating the financial impact.
- Blocked Funds and Return to Victims:
- Since April 2021, ₹1127 crore has been blocked in various bank accounts based on complaints from 4.3 lakh victims of cybercrime.
- However, only ₹100 crore has been returned to complainants, posing a significant concern.
- The government is actively working on a mechanism to facilitate the release of blocked funds, consulting with banks and formulating a Standard Operating Procedure (SOP) to expedite the process.
- This SOP is undergoing the final stages of legal vetting, with the aim of resolving the issue in the coming months.
- Addressing the challenges in returning blocked money, Rajesh Kumar, CEO of the Indian Cyber Crime Coordination Centre (I4C), mentioned that banks require a court order to release funds from blocked accounts.
- The government has conducted legal consultations with relevant authorities to establish procedures for facilitating the return of money to victims.
- The proposed SOP is expected to streamline this process.
- Integration of Entities with 1930 Helpline:
- A total of 263 banks, e-commerce companies, and the National Payments Corporation of India (NPCI), responsible for developing the Unified Payments Interface (UPI), have been integrated with the 1930 helpline.
- This integration allows for automated ticketing when a cybercrime complaint is received, ensuring swift action, including blocking money that has transferred between different banks.
- Blocking of Assets and Hotspots:
- The I4C has taken proactive measures, blocking 2, 95,461 SIM cards, 2,810 websites, 595 mobile applications, and 46,229 IMEI numbers based on received complaints.
- Additionally, it was highlighted that West Bengal, Odisha, and Assam are identified as hotspots for SIM cards obtained through fraudulent means, emphasizing the geographical concentration of certain cybercrime activities.
- Major Cyber Crime Trends in the Past Year:
- The Indian Cyber Crime Coordination Centre (I4C) highlighted five significant cyber-crime trends observed in the previous year. These include:
- Approximately 1.49 lakh complaints related to Investment Apps/Websites enticing individuals with part-time jobs or involving them in Ponzi schemes.
- 85,000 complaints linked to Illegal Loan Apps.
- 43,000 complaints concerning Customer Care Number and One Time Password (OTP) frauds.
- 34,000 complaints related to Impersonation or takeover of social media accounts.
- 19,000 complaints associated with Sextortion.
- The I4C emphasized that most investment apps, particularly those involved in fraudulent activities, originate from adversarial countries.
- Some scams even involve victims being called to foreign countries such as Myanmar and Cambodia to carry out fraudulent activities.
- The I4C recently assisted Indians stranded in Myanmar due to such scams.
- In the context of loan app scams, scammers gain control of victims’ phones, using their data as collateral.
- If victims fail to repay high-interest loans, individuals in their contact lists are harassed.
- The I4C expressed difficulties in effectively addressing and curbing these crimes.
- Regulatory Measures:
- The Reserve Bank of India (RBI) has whitelisted 395 Instant Loan Apps to safeguard consumers.
- Additionally, the I4C has identified and flagged “mule accounts” to banks and fintech companies.
- This involves providing aggregate data at the national level, enabling the identification of such accounts, along with details of banks, branch locations, and geographical areas where these accounts are opened.
- Collaboration with law enforcement and banks is resulting in the blocking of these accounts.
- Geographical Distribution of Cyber Crimes:
- The majority of cyber-crimes were reported from states such as Haryana, Telangana, Uttarakhand, Gujarat, and Goa.
- Among Union Territories, Delhi reported the highest number of complaints, followed by Chandigarh and Puducherry.
- The Indian Cyber Crime Coordination Centre (I4C) highlighted five significant cyber-crime trends observed in the previous year. These include:
About Indian Cybercrime Coordination Centre (I4C)
- The Indian Cybercrime Coordination Centre (I4C) is an initiative launched by the Ministry of Home Affairs, Government of India, aimed at addressing cybercrime in a coordinated and comprehensive manner within the country.
- The I4C scheme was approved on October 5, 2018, and has been operational since then.
- Its primary focus is to enhance the collective capability of the nation in dealing with cybercrimes while fostering improved coordination among various law enforcement agencies and stakeholders.
- The centre was dedicated to the nation on January 10, 2020, by the Hon’ble Home Minister.
- Objectives of I4C:
- To serve as a central point to curb cybercrime across the country.
- Strengthening efforts to combat cybercrimes targeting women and children.
- Providing an easily accessible platform for filing cybercrime-related complaints and identifying trends and patterns.
- Acting as an early warning system for law enforcement agencies, aiding in proactive cybercrime prevention and detection.
- Creating awareness among the public about preventive measures against cybercrime.
- Assisting States/Union Territories in the capacity building of police officers, public prosecutors, and judicial officers in areas such as cyber forensics, investigation, cyber hygiene, and cyber criminology.
55% of patients given antibiotics only as a preventive measure, says survey
(General Studies- Paper III)
Source : TH
A recent survey conducted by the National Centre for Disease Control (NCDC) in India revealed that over half of the nearly 10,000 hospital patients surveyed were prescribed antibiotics for preventive purposes rather than for treating infections.
- The survey covered 20 tertiary care institutes across 15 states and two Union Territories from November 2021 to April 2022.
Key Highlights
- More than 50% of surveyed patients received antibiotics as a preventive measure, raising concerns about the misuse of antibiotics.
- 94% of patients were given antibiotics before a definitive medical diagnosis confirming the specific cause of infection, indicating a prevalent trend of empirical therapy.
- Out of 72% of patients prescribed antibiotics, only 45% received them for therapeutic purposes, meant to treat infections.
- The remaining 55% received antibiotics for prophylactic purposes, to prevent the occurrence or spread of infections.
- Global Health Concern:
- The World Health Organization (WHO) has identified antimicrobial resistance as a significant threat to public health.
- Bacteria evolving and rendering antibiotics less effective is a natural phenomenon, but excessive and inappropriate antibiotic use accelerates this resistance.
- To address the challenge of limited information on antibiotic prescribing patterns, WHO has introduced global point prevalence surveys to understand how antibiotics are used in hospitals.
- The surveys aim to track changes in antibiotic use over time.
- Concerns and Implications:
- The survey underscores that one of the primary drivers for the development of antibiotic resistance is the excessive and inappropriate use of these drugs.
- The findings highlight the importance of monitoring and regulating antibiotic prescriptions in hospitals to combat the rising threat of antimicrobial resistance.
- Few studies in India have utilized global survey methodologies to comprehensively understand antibiotic prescribing patterns at the patient level.
- The National Centre for Disease Control (NCDC) survey report highlighted significant differences among various hospitals in India regarding antibiotic prescriptions.
- The survey covered multiple tertiary care institutes and found that antibiotic prescription rates varied widely, ranging from 37% in some hospitals to 100% in others.
- The survey recorded a total of 12,342 antibiotic prescriptions across the surveyed hospitals.
- A substantial 86.5% of prescriptions were administered through the parenteral route, indicating non-oral methods of consumption.
- Using the WHO’s Access, Watch, and Reserve (AWaRe) classification, only 38% of prescriptions fell into the Access group, which offers the best therapeutic value with minimal potential for resistance.
- A larger portion, 57%, belonged to the Watch group, which is indicated for specific infections and is more prone to antibiotic resistance.
- Only 2% of antibiotics prescribed were categorized as “last resort” Reserve group drugs.
- Approximately 3% of prescriptions were of the “not recommended” group, indicating inappropriate usage.
- Concerns and Implications:
- The survey expressed concern about the substantial use of antibiotics from the Watch group, emphasizing the higher potential for the development of antibiotic resistance with this category.
- The NCDC, as the nodal agency for India’s national program on antimicrobial resistance (AMR) containment, emphasized the importance of surveillance in tracking antibiotic usage.
- The establishment of the National Antibiotic Consumption Network (NAC-NET) plays a vital role in this effort.
- The report highlighted that overuse of antibiotics by humans, often inappropriately prescribed, is a major contributing factor to the development of antibiotic resistance.
What is the meaning of parenteral route of medication?
- The term “parenteral route” refers to a method of administering medications or substances directly into the body, bypassing the digestive system.
- This can include administration through injections, intravenous (IV) infusions, or other routes that do not involve ingestion through the mouth, such as oral tablets or liquids.
- The parenteral route is often chosen for medications that need rapid absorption or when the patient cannot take medications orally.
What is Antimicrobial resistance (AMR)?
- Antimicrobial resistance (AMR) refers to the ability of microorganisms, such as bacteria, viruses, fungi, and parasites, to resist the effects of antimicrobial agents, which are drugs designed to kill or inhibit the growth of these microorganisms.
- The term is often used interchangeably with antibiotic resistance, which specifically refers to the resistance of bacteria to antibiotics.
- AMR occurs when microorganisms evolve and adapt in ways that make the drugs ineffective against them.
- This can happen through the natural selection of resistant strains over time or due to the inappropriate and overuse of antimicrobial drugs.
- When antibiotics or other antimicrobial medications are misused or overprescribed, it creates a selective pressure that favours the survival of resistant strains, leading to the development of resistant infections.
- Key Facts:
- Antimicrobial Resistance (AMR) stands as a major global public health and development threat, contributing directly to 1.27 million deaths worldwide in 2019 and playing a role in 4.95 million deaths.
- The misuse and overuse of antimicrobials in humans, animals, and plants are identified as primary drivers behind the development of drug-resistant pathogens.
- AMR affects countries across regions and income levels, with low- and middle-income countries experiencing the most significant impact.
- Poverty and inequality exacerbate the drivers and consequences of AMR.
- The global community faces significant economic costs due to AMR, with estimates suggesting potential additional healthcare costs of US$ 1 trillion by 2050 and annual gross domestic product (GDP) losses ranging from US$ 1 trillion to US$ 3.4 trillion by 2030.
SpaceX’s Falcon9 to launch India’s GSAT20
(General Studies- Paper III)
Source : TH
NewSpace India Limited (NSIL), the commercial arm of ISRO, is set to launch GSAT-20 (renamed as GSAT-N2) aboard SpaceX’s Falcon-9 during the second quarter of 2024.
Key Highlights
- Key Features of GSAT-20:
- GSAT-20 is a high-throughput Ka-band Satellite.
- Fully owned, operated, and funded by NSIL.
- Offers Ka-Ka band HTS capacity with 32 beams, providing Pan-India coverage, including Andaman and Nicobar and Lakshadweep islands.
- Weighing 4700 kg, the satellite offers an HTS capacity of nearly 48 Gbps.
- Specifically designed to meet the demanding service needs of remote and unconnected regions.
- Space Sector Reforms and NSIL’s Mandate:
- In June 2020, the Government of India announced space sector reforms.
- NSIL, under these reforms, is mandated to build, launch, own, and operate satellites in “Demand-driven mode” to meet user service needs.
- Successfully undertook the first Demand-driven satellite mission, GSAT-24, in June 2022, fully funded by NSIL.
- NSIL presently owns and operates 11 communication satellites in orbit.
- Mission Overview:
- NewSpace India Limited (NSIL) is set to launch the GSAT-20 satellite during the second quarter of 2024, aiming to provide cost-effective Ka-Ka band High Throughput Satellite (HTS) capacity.
- The satellite is designed to meet the broadband, IFMC, and cellular backhaul service needs.
- NSIL is partnering with ISRO to realize the GSAT-20 satellite.
- The satellite will be launched on SpaceX’s Falcon 9 under a launch service contract between NSIL and SpaceX, USA.
- Falcon 9 Reusability:
- SpaceX’s Falcon 9 is highlighted as the world’s first orbital class reusable rocket.
- Reusability enables SpaceX to refly the most expensive parts of the rocket, contributing to cost reduction in space access.
About NewSpace India Limited (NSIL)
- NewSpace India Limited (NSIL) operates as a Public Sector Undertaking (PSU) under the Government of India and falls under the Department of Space.
- Established on March 6, 2019, it operates under the administrative control of the Department of Space (DoS) and adheres to the guidelines of the Company Act 2013.
- Mission and Establishment:
- NSIL’s primary mission is to enhance private sector involvement in Indian space programs.
- It plays a pivotal role in producing, assembling, and integrating launch vehicles in collaboration with industry consortiums.
- Objectives of NSIL:
- NSIL facilitates the transfer of small satellite technology to the industry by obtaining licenses from DoS/ISRO and sub-licensing them to private entities.
- Collaborating with the private sector, NSIL aims to manufacture Small Satellite Launch Vehicles.
- NSIL works with the Indian industry for the production of Polar Satellite Launch Vehicles.
- This includes both launch services and various space-related applications.
- NSIL actively engages in transferring technology developed by ISRO Centres and other units under the Department of Space.
- NSIL is involved in the marketing of spin-off technologies and related products/services, both within India and internationally.
Note: Spin-off technologies refer to technologies or innovations that are developed for a specific purpose or project but find additional applications or markets beyond their original intended use.
About Falcon 9
- Falcon 9 is a two-stage orbital launch vehicle designed and manufactured by SpaceX (Space Exploration Technologies Corp.).
- It is capable of carrying a variety of payloads, including satellites, cargo, and crewed spacecraft, to various orbits.
- Falcon 9 is renowned for its pioneering reusability features, being the first orbital-class rocket designed for reuse.
- The first stage, which includes the main engines and supporting structures, is capable of being recovered and reused for multiple missions, contributing to cost-effectiveness.
- Depending on the mission profile, Falcon 9 can carry payloads ranging from low Earth orbit (LEO) to geostationary transfer orbit (GTO).
Note: SpaceX was founded by Elon Musk in 2002 with the goal of reducing space transportation costs and enabling the colonization of Mars. The company is headquartered in Hawthorne, California.
The blood management system needs a fresh infusion
(General Studies- Paper II)
Source : TH
The COVID-19 pandemic has underscored global health disparities, prompting policymakers to advocate for improvements in the global health architecture.
- Key strategies include increased health financing, widespread adoption of digital health solutions, and enhanced access to medical countermeasures.
- Amid these priorities, ensuring access to blood and its products is deemed essential for building a resilient global health architecture.
Key Highlights
- Significance of Blood and Products:
- Blood and its products are vital in various medical scenarios, including scheduled surgeries, emergencies, and treatments for conditions like cancer, thalassemia, and postpartum hemorrhage.
- Their irreplaceable significance is evident in addressing diverse healthcare needs.
- Global Disparities in Blood Collection:
- A recent report by the World Health Organization (WHO) highlights global disparities in blood collection.
- Despite constituting 14% of the global population, countries in the WHO African region collected only 5% of global donations, revealing significant disparities.
- Similar patterns exist in low-income and lower-middle-income nations, receiving 2% and 24% of global contributions, respectively, despite their populations accounting for 8% and 40% of the global population.
- Blood Shortages in India:
- While India has improved its blood management ecosystem, it faces a persistent shortage of blood units.
- In 2019-20, India collected around 1.27 crore blood units but experienced a shortage of over six lakh units, impacting critical healthcare services.
- Shortages have implications for healthcare systems, risking lives in accidents, heart surgeries, and bone marrow transplants.
- In addressing inequities in access to safe and sustainable blood, robust public-private partnerships (PPPs) are essential.
- The hub and spoke model, an innovative approach in blood collection and distribution, emerges as a strategic solution.
- Collaborations between industry leaders can effectively introduce this model, particularly beneficial in resource-constrained settings, such as Low- and Middle-Income Countries (LMIC).
- Advantages of Hub and Spoke Model:
- The hub and spoke model involves high-volume blood banks serving as hubs for smaller blood centers, addressing critical gaps in blood availability and distribution.
- Particularly relevant for LMIC, this model enhances accessibility and availability of blood and its products.
- Given the short shelf life of blood and its products, the hub and spoke model optimizes their utilization by streamlining distribution.
- By ensuring timely and efficient distribution, the model reduces losses from expiration, addressing the challenge of discarding surplus blood units.
- Data-Driven Decision Making:
- Data presented in Parliament reveals a surplus of 30 lakh blood units and related products discarded over three years (2014-15 to 2016-17).
- Primary reasons include expiration, degradation during storage, and the presence of infections like HIV and syphilis.
- Implementation of the hub and spoke model improves accessibility to safe blood and products in community health centers and smaller sub-district hospitals.
- Particularly beneficial in geographically challenging topographies, ensuring a wider reach.
- Challenging Blood Donation Myths:
- The blood management system faces challenges associated with the perpetuation of myths and misinformation around voluntary blood donation.
- Various misconceptions, such as fears of infections, concerns about damaging immunity, and misconceived notions about time-consuming processes, discourage individuals from voluntarily donating blood.
- Addressing Misconceptions Through Awareness Initiatives:
- Despite regular campaigns by government agencies to improve awareness, myths persist.
- The private sector can collaborate with the government to launch targeted awareness campaigns, especially at the grassroots level.
- Leveraging social media and innovative tools like multi-lingual comics can effectively dispel myths and emphasize the importance and benefits of regular voluntary blood donation.
- Creative strategies aim to engage diverse audiences, fostering a culture of informed and voluntary blood donation.
- Post-COVID-19 Health Paradigm:
- As the world transitions beyond the COVID-19 pandemic and aligns with the global developmental roadmap, adjustments in the health paradigm are crucial.
- Recognizing the central role of blood and its products in modern medicine, political leaders and policymakers must take continuous steps to strengthen the blood management ecosystem.
- Proactive engagement from the industry and active participation of the citizenry are deemed pivotal aspects of this concerted effort to ensure a robust and equitable blood management system for a sustainable future.
The dispute on India’s debt burden
(General Studies- Paper III)
Source : TH
The International Monetary Fund (IMF) has raised concerns over India’s long-term debt sustainability and reclassified its exchange rate regime from “floating” to a “stabilised arrangement.”
- These observations are part of the annual Article IV consultation report, reflecting the Fund’s surveillance function under the Articles of Agreement with member countries.
Key Highlights
- The IMF expresses concerns about the long-term sustainability of India’s debts, projecting that the general government debt (including the Centre and States) could reach 100% of GDP by fiscal 2028 under adverse circumstances.
- Long-term risks are highlighted due to the substantial investment required for India to meet climate change mitigation targets and enhance resilience to climate stresses and natural disasters.
- Exchange Rate Reclassification:
- The IMF reclassifies India’s exchange rate regime as a “stabilised arrangement,” potentially implying ‘excessive management’ as the rupee has operated within a narrow band due to Central Bank interventions.
- Government’s Response:
- The Finance Ministry refutes the IMF’s debt sustainability projections, terming them a “worst-case scenario” and emphasizing that they are not a fait accompli.
- Way Forward:
- The IMF suggests the need for new and concessional financing sources, greater private sector investment, and mechanisms like carbon pricing to address India’s climate change challenges.
- Government borrowings are acknowledged as a crucial tool for development; however, the burden of debt can hinder progress due to limited access to financing, rising borrowing costs, currency devaluations, and slow economic growth.
- The United Nations highlights the dilemma faced by countries, stating, “Countries are facing the impossible choice of servicing their debt or serving their people.”
- Alarming Global Debt Trends:
- Global public debt has surged more than fourfold since 2000, surpassing the growth rate of global GDP, which tripled over the same period.
- In 2022, global public debt reached a record USD 92 trillion.
- Developing countries constitute almost 30% of the total global public debt, with China, India, and Brazil accounting for around 70% of this share.
- Developing countries have experienced a faster increase in public debt compared to developed nations over the past decade.
- Factors Contributing to Rising Debt:
- Growing financing needs for development, exacerbated by the COVID-19 pandemic, cost-of-living crisis, and climate change, have driven the surge in debt.
- The number of countries facing high levels of debt has risen from 22 in 2011 to 59 in 2022.
- Developing countries, even without considering exchange rate fluctuations, face higher interest rates compared to developed nations.
- African countries, on average, borrow at rates four times higher than the United States and eight times higher than Germany, undermining debt sustainability.
- Impact on India and IMF’s Projections:
- The International Monetary Fund’s (IMF) worst-case scenario projections for India need to be understood within the persistent debt challenges faced by developing countries.
- India faces the dual challenge of managing public debt prudently to prevent breaching sustainable levels while addressing the impact on credit ratings.
- The central government’s debt stood at ₹155.6 trillion, or 57.1% of GDP, at the end of March 2023, and state governments’ debt was around 28% of GDP.
- India’s public debt-to-GDP ratio has increased marginally from 81% in 2005-06 to 84% in 2021-22, returning to 81% in 2022-23, surpassing levels specified by the Fiscal Responsibility and Budget Management Act (FRBMA).
- Credit Rating Stagnation:
- Despite being the fastest-growing major economy, India’s sovereign investment ratings have remained unchanged for a long time, with both Fitch Ratings and S&P Global Ratings maintaining ‘BBB-‘ (lowest investment grade) with a stable outlook since August 2006.
- India’s strong fundamentals are perceived to be undermined by weak fiscal performance, a burdensome debt stock, and low per capita income, affecting sovereign ratings.
- Fiscal Challenges and Emerging Signs:
- Worrying signs on the fiscal front emerge, raising concerns about a possible fiscal slippage in FY24, attributed to increased expenditure on employment guarantee schemes and subsidies.
- Factors contributing to fiscal concerns include the exhaustion of the budgeted fertilizer subsidy and higher-than-budgeted spending on Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), especially in an election year.
- Short-term challenges involve adhering to the fiscal correction path during an election year to avoid worst-case scenarios, as projected by the International Monetary Fund (IMF) for the medium term.
Understanding ‘floating’and ‘stabilised arrangement’ in exchange rate
- The exchange rate regime represents the framework within which a country’s currency value is determined in the foreign exchange market.
- There are different classifications for exchange rate regimes, and two common categories are “floating” and “fixed” (or “pegged”).
- Floating Exchange Rate:
- In a floating exchange rate regime, the value of a country’s currency is determined by the market forces of supply and demand in the foreign exchange market.
- The currency’s value can fluctuate freely based on various economic factors such as inflation, interest rates, and trade balances.
- Governments or central banks do not actively intervene to maintain a specific exchange rate level.
- Stabilized Arrangement (or Fixed/Pegged Exchange Rate):
- In a stabilized arrangement or fixed exchange rate regime, the government or central bank takes specific actions to keep the currency’s value within a predetermined range or against another currency.
- This can involve direct interventions in the foreign exchange market, buying or selling currency to maintain the desired exchange rate.
- The purpose is to provide stability and predictability to businesses and investors regarding the currency’s value.