CURRENT AFFAIRS – 16/11/2023

CURRENT AFFAIRS – 16/11/2023

Parliamentary panel leaves decision on death penalty to Centre

(General Studies- Paper II)

Source : TH

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A parliamentary panel report reveals that the Bharatiya Nyaya Sanhita (BNS) Bill, 2023 aims to replace the British-era Indian Penal Code.

• The proposed bill increases the number of crimes eligible for the death penalty from 11 to 15.

 

Key Highlights

• Death Penalty Expansion and Expert Deliberation:
  • The parliamentary panel report indicates that domain experts extensively deliberated on the need to abolish the death penalty.
  • Despite discussions on the abolition, the BNS Bill, 2023 expands the crimes for which the death penalty can be imposed.
  • India has historically voted against a United Nations General Assembly draft resolution advocating the abolition of the death penalty.
  • According to a study by the National Law University Delhi (Annual Statistics Report 2022), as of December 31, 2022, India had 539 prisoners on death row, the highest since at least 2016.
• Parliamentary Panel Recommendations:
  • The parliamentary panel, led by Bharatiya Janata Party (BJP) member Brij Lal, recommended leaving the decision on the death penalty to the government’s discretion.
  • Concerns were raised about the fallibility of the judicial system, emphasizing the potential for innocent individuals to be wrongly sentenced to death.
• Opposition Dissent Notes:
  • Three opposition members, including Congress’s P. Chidambaram and Digvijaya Singh, and Trinamool Congress’s Derek O’Brien, submitted dissent notes against the death penalty provision.
  • Opposition members argue that the proposed bills, while aimed at shedding the colonial nature of criminal laws, retain a colonial spirit, making punishments harsher and introducing the death penalty for offenses such as mob lynching, organized crime, terrorism, and rape of a minor.
• Arguments Against Death Penalty:
  • Chidambaram, former Home Minister, presented data indicating that the Supreme Court affirmed the death penalty in only 7 cases in the last 6 years.
  • The argument against the death penalty emphasizes that it causes distress and trauma, and imprisonment for life without parole is considered a more rigorous punishment, providing an opportunity for the convict to reform.
  • It is also highlights that 74.1% of individuals on death row in India come from economically disadvantaged backgrounds.
• Objective Definition of “Rarest of Rare” Doctrine:
  • Domain experts suggest that the “rarest of rare case” doctrine, a criterion for imposing the death penalty, should be defined more objectively.
  • Experts propose the establishment of guidelines, akin to the UK Sentencing Council, outlining the roles of Sessions Courts and High Courts in cases with apparent evidence but inadequate defense.
  • Suggestions include incorporating provisions for mistrials in cases where media influences outcomes, legal aid counsel fails to provide a sufficient defense, the court acts impartially, or counsel refuses representation, particularly in cases involving religious or caste prejudice.
  • Experts recommend empowering quasi-judicial boards to handle probation, commutation, and remission, providing victims with a greater say in these processes.
  • Advocates for setting clear timelines for the hearing and disposal of mercy petitions to expedite the legal process.
• Overview of New Criminal Codes:
  • The Bharatiya Nyaya Sanhita (BNS) Bill, 2023, BharatiyaNagarik Suraksha Sanhita (BNSS) Bill, 2023, and BharatiyaSakshya (BS) Bill, 2023 are proposed to replace the Indian Penal Code, 1860, Code of Criminal Procedure, 1898, and the Indian Evidence Act, 1872, respectively.
  • Introduced on August 11 in Parliament, the Bills are under examination by the parliamentary standing committee on Home Affairs.

 

About Parliamentary committees

• Parliamentary committees in India are groups of Members of Parliament (MPs) elected, appointed, or nominated by the Speaker or Chairman.
• Originating from the British Parliament, these committees operate under the guidance of the Speaker of Lok Sabha or Chairman of Rajya Sabha.
• They play a vital role in the parliamentary system by conducting investigations and presenting findings and recommendations to the respective houses of Parliament.
• The authority for the functioning of Parliamentary committees is derived from specific constitutional provisions, primarily Article 105, which outlines the powers and privileges of Parliament, its members, and committees, and Article 118, which empowers each House of Parliament to establish rules for regulations, procedures, and the conduct of business, within constitutional provisions.
• Types of Parliamentary Committees:
  • Standing Committees:
    • Permanent committees that are constituted for the duration of the parliamentary year.
    • Examine and report on bills, budgets, and issues related to the ministries they oversee.
  • Select or Ad Hoc Committees:
    • Formed for specific purposes and a limited duration.
    • Examples include select committees for bills that need in-depth examination.
  • Joint Committees:
    • Comprise members from both Lok Sabha and Rajya Sabha.
    • Examine specific matters such as the Joint Parliamentary Committee on Security.
  • Public Accounts Committee (PAC):
    • Examines the government’s expenditure and its adherence to financial rules.
    • Consists of members from Lok Sabha.
  • Estimates Committee:
    • Examines estimates included in the budget and suggests economies or improvements.
    • Consists of members from Lok Sabha.
  • Committee on Public Undertakings (COPU):
    • Examines the reports and accounts of public undertakings.
    • Comprises members from both houses.
  • Committee on Subordinate Legislation:
    • Examines and reports on matters relating to subordinate legislation.
    • Comprises members from both houses.

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Secrecy and no tax — reason why Indians look at Cyprus

(General Studies- Paper III)

Source : The Indian Express

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Cyprus Confidential is a comprehensive global offshore investigation uncovering 3.6 million documents in English and Greek, exposing a network of companies established in the tax haven of Cyprus by influential individuals worldwide.

• This collaborative effort involves over 270 journalists from 60 media outlets in 55 countries, in partnership with the International Consortium of Investigative Journalists (ICIJ).

 

Key Highlights

• Scope of the Investigation:
  • The data trove encompasses documents sourced from six offshore service providers in Cyprus.
  • It not only sheds light on Indian investors obtaining Cypriot nationality through the Golden Passport scheme but also delves into the activities of prominent business entities capitalizing on Cyprus’ favorable tax regime.
  • The investigation is a joint effort involving journalists from diverse backgrounds and locations, emphasizing the global reach and significance of the revelations.
• Indian Perspective:
  • The primary focus of the investigation is to demystify the secrecy surrounding offshore entities for government and regulatory agencies.
  • The disclosed documents detail how entities with offshore residency are effectively controlled from India.
  • Instructions for financial transactions within these entities originate from individuals based in India.
• Legality of Indian Companies Setting Up Offshore Entities in Cyprus:
  • Setting up offshore companies in Cyprus is not illegal.
  • India has established double-taxation avoidance agreements (DTAAs) with various countries, including Cyprus, providing attractive low tax rates.
  • Companies leverage their tax residency certificates in these nations to legally benefit from tax advantages.
  • However, jurisdictions like Cyprus often exhibit lax regulatory oversight and stringent secrecy laws.
• Evolution of India-Cyprus Tax Treaty
  • The tax treaty between India and Cyprus has undergone significant transformations in the past two decades, evolving through three distinct phases.
  • Phase 1: Prior to 2013 – Tax Exemption and Withholding Tax:
    • The initial phase of the treaty, predating 2013, granted investors exemption from capital gains tax upon exit.
    • Cyprus, mirroring this arrangement, did not tax capital gains, making it an attractive destination for entities and investments in India.
    • A low 4.5% withholding tax further contributed to Cyprus’s appeal for businesses and individuals.
    • Withholding tax served as an effective means of ensuring tax compliance by non-residents, applicable when making payments to non-resident individuals.
    • The payee deducted tax, deposited it with the government, and the tax rate was determined by the Income-tax Act, 1961, or the Double Taxation Avoidance (DTA) Agreement, whichever was lower.
  • Phase 2: Since 2013 – Notified Jurisdictional Area (NJA):
    • From November 1, 2013, Cyprus was categorized as a Notified Jurisdictional Area (NJA) under Section 94A of the Income-tax Act.
    • NJA status subjected entities in Cyprus to a higher withholding tax rate of 30% for received payments and compliance with Indian transfer pricing regulations.
    • This change was part of India’s move to include Cyprus in the list of countries refraining from sharing valuable tax-related information.
  • Phase 3: Since 2016 – Revised DTAA and Source-Based Taxation:
    • A revised Double Taxation Avoidance Agreement (DTAA) was signed on December 14, 2016.
    • India rescinded Cyprus as an NJA and clarified that this rescission had retrospective effect from November 1, 2013.
    • The new DTAA introduced source-based taxation of capital gains arising from the alienation of shares.
    • A grandfathering clause was implemented for investments made before April 1, 2017, allowing taxation of capital gains in the taxpayer’s country of residence.
    • These changes align with adjustments seen in the renegotiated India-Mauritius tax treaty, emphasizing source-based taxation of capital gains and the inclusion of a grandfathering clause.
  • Cyprus Tax Benefits:
    • Corporate Tax Rates:
      • Offshore companies and offshore branches managed and controlled from Cyprus are taxed at a favorable rate of 4.25%.
      • Offshore branches managed abroad and offshore partnerships enjoy complete exemption from tax.
    • Dividends and Profits:
      • No withholding tax on dividends.
      • Beneficial owners of offshore entities are not subject to additional tax on dividends or profits beyond what the legal entities pay.
    • Capital Gains and Estate Duty:
      • No capital gains tax on the sale or transfer of shares in offshore entities.
      • No estate duty on the inheritance of shares in offshore companies.
    • Import Duty Exemptions:
      • No import duty on the purchase of cars, office, or household equipment for foreign employees.
    • Anonymity Assurance:
      • Cyprus assures anonymity for the beneficial owners of offshore entities.
    • India-Cyprus DTAA Mechanism:
      • The DTAA allows Cyprus, with its low tax regime, to be utilized as a jurisdiction for tax planning.
      • Foreign investors often establish investment firms in Cyprus to benefit from the DTAA when investing in India.
    • Withholding Tax Considerations:
      • Dividends paid from India to Cyprus are subject to withholding tax.
      • However, this tax is adjusted or credited against the 4.25% tax rate in Cyprus, resulting in no additional taxation in Cyprus.
    • Offshore Trusts in Cyprus:
      • Definition and Tax Exemptions:
        • Offshore trusts in Cyprus, as per the International Trust Law, involve property and income outside Cyprus, with non-resident settlors and beneficiaries.
        • Trusts with Cypriot trustees are exempt from estate duty and incur no tax on income and gains.
      • Confidentiality and Registration:
        • Offshore trusts in Cyprus are not required to be registered with any government authority.
        • Confidentiality is protected under the law.
      • Indian Taxman’s Authority with DTAA:
        • Limitations of DTAA:
          • While a DTAA provides benefits, the Indian tax department can deny these benefits if it’s established that a company was inserted as the owner of shares solely to avoid tax.
        • Scrutiny of Transactions:
          • The taxman retains the right to question transactions if there’s evidence of manipulative practices, such as inserting a company for tax avoidance purposes during the disposal of shares.

 

About Double Taxation Avoidance Agreement (DTAA)

• A Double Taxation Avoidance Agreement (DTAA) is a bilateral tax treaty entered into by two countries with the primary objective of preventing the taxation of the same income in both jurisdictions.
• The purpose of these agreements is to eliminate or mitigate the impact of double taxation on individuals and businesses that engage in cross-border economic activities.
• DTAA covers various types of income, such as business profits, dividends, interest, royalties, capital gains, and employment income.
• The agreement specifies the rules for determining in which country the income will be taxed.
• DTAA also includes a Mutual Agreement Procedure to resolve disputes between the tax authorities of the two countries.
• Taxpayers can seek relief from double taxation through consultations between the tax authorities.

Section 94A of the Income-tax Act

• Section 94A is a provision in the Income-tax Act of India that empowers the Indian government to notify jurisdictions as “Notified Jurisdictional Areas” (NJA).
• The purpose of this provision is to counter tax avoidance through the use of jurisdictions with low or no taxation and to ensure that transactions with entities in such jurisdictions are subject to greater scrutiny.

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PM Modi launches project for development of vulnerable tribal groups

(General Studies- Paper II)

Source : TH

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Prime Minister Narendra Modi inaugurated the ₹24,000-crore Pradhan Mantri Particularly Vulnerable Tribal Groups (PM PVTG) Mission, emphasizing holistic development for approximately 28 lakh Particularly Vulnerable Tribal Groups (PVTGs) across India.

• The launch coincided with the birth anniversary of tribal icon Birsa Munda and the third ‘Janjatiya Gaurav Diwas.’

 

Key Highlights

• Mission Objectives:
  • Under the PM PVTG Mission, the focus is on providing essential amenities and services to remote, scattered, and inaccessible PVTG habitations.
  • Key areas of development include road and telecom connectivity, electricity, safe housing, clean drinking water, sanitation, enhanced access to education, health, nutrition, and sustainable livelihood opportunities.
• Financial Support:
  • As part of the launch event, Prime Minister Modi released ₹18,000 crore as the 15th installment of the Pradhan MantriKisanSamman Nidhi (PM-KISAN) scheme.
  • This financial support aims to benefit over eight crore farmers across the country.
  • The digital transfer of funds occurred during the celebration of the third Janjatiya Gaurav Diwas.

 

About Particularly Vulnerable Tribal Groups (PVTGs)

• Particularly Vulnerable Tribal Groups (PVTGs), formerly known as Primitive Tribal Groups, represent a sub-classification within the Scheduled Tribe category in India.
• This classification is designed to identify and prioritize tribes facing heightened vulnerabilities for targeted development interventions.
• Origin of the Concept:
  • The concept of PVTGs traces back to the findings of the Dhebar Commission (1960-1961), which recognized inequalities in the development rates among Scheduled Tribes.
  • To address this disparity, the sub-category “Primitive tribal group” was introduced in the fourth Five Year Plan.
  • The criteria for identifying such groups included a pre-agricultural lifestyle, zero or negative population growth, and significantly low literacy levels compared to other tribal communities.
• Evolution and Expansion:
  • Fifth Five Year Plan: At the end of this plan, 52 communities were identified as Primitive Tribal Groups based on recommendations from Indian state governments.
  • Sixth Five Year Plan: Recognizing the need for further inclusivity, 20 additional groups were added to the list.
  • Seventh Five Year Plan: Two more groups were included in the PVTG list.
  • Eighth Five Year Plan: One additional group, the Maram in Manipur, was recognized as the 75th PVTG in 1993-94.
  • 2001 Census: No new group was declared as PVTG based on the census data.
• Name Change:
  • In 2006, the Indian government officially changed the name from “Primitive tribal group” to “Particularly Vulnerable Tribal Group” (PVTG) to better reflect the purpose of identifying and addressing the specific vulnerabilities faced by these communities.
• Characteristics of PVTGs:
  • PVTGs are characterized by a pre-agricultural system, often relying on hunting and gathering.
  • They exhibit zero or negative population growth and have notably low literacy levels compared to other tribal groups.
• PVTGs are distributed across 18 states and one union territory in India.
• The primary objective behind identifying and classifying PVTGs is to prioritize and implement targeted developmental measures to uplift these tribes, recognizing their unique challenges and vulnerabilities.

About Janjatiya Gaurav Divas

• The Government of India declared 15th November as Janjatiya Gaurav Divas in 2021.
• The day is dedicated to honoring the memory of brave tribal freedom fighters.
• Purpose of Celebration:
  • Janjatiya Gaurav Divas is celebrated annually to acknowledge and appreciate the contributions of tribals in preserving cultural heritage.
  • The celebration aims to recognize the role of tribal communities in promoting Indian values such as national pride, valour, and hospitality.
• Tribals played a significant role in various movements against British colonial rule.
• The list of tribal communities involved includes Tamars, Santhals, Khasis, Bhils, Mizos, and Kols, among others.
• Recognition of Efforts:
  • The celebration underscores the efforts of tribal communities in resisting colonial oppression and contributing to the struggle for independence.
  • It acknowledges the unique cultural identity and heritage preserved by these communities.
• Janjatiya Gaurav Divas emphasizes the promotion of Indian values, showcasing the spirit of national pride and bravery among tribal communities.

 

About Birsa Munda

• Born on November 15, 1875, in Ulihatu village, Jharkhand, Birsa Munda grew up in poverty within a tribal Munda family.
• British Raj and Exploitation:
  • The exploitative British Raj entered Central and Eastern India, disrupting the harmonious life of tribals connected with nature and resources.
  • The British introduced a feudal Jamindari system in Chhota Nagpur, destroying the tribal Khuntkatti agrarian system.
  • Moneylenders, contractors, and feudal landlords, brought in by the British, contributed to the exploitation of tribals.
• Birsa Munda’s Activism:
  • Witnessing the oppressive changes, Birsa took up the cause of Adivasis, working to reform religious practices and revive tribal pride.
  • He discouraged superstitious rites, introduced new tenets and prayers, and aimed to restore tribal pride.
  • Introduced the slogan “Sirmarefirun raja jai” or ‘victory to the ancestral king,’ emphasizing the autonomy of tribals over their land.
• Mass Leader and Spiritual Figure:
  • He evolved into a mass leader, considered a Bhagwan and Dharati Aba (Earth Father) by followers.
  • Birsa Munda recognized British colonial rule as the root cause of oppression and problems faced by the tribals.
• Ulgulan and Imprisonment:
  • He led the Ulgulan movement against colonial masters and exploitative outsiders, uniting Mundas, Oraons, and others for emancipation.
  • He was later captured by British police and was imprisoned, where he died on June 9, 1900.
• Legacy and Impact:
  • The spirited struggle compelled the British Raj to address the exploitation of tribals.
  • Chhota Nagpur Tenancy Act (1908):
    • Birsa Munda’s activism led to the enactment of the Chhota Nagpur Tenancy Act of 1908, protecting tribal land rights and restricting transfers to non-tribals.
  • The Act became a landmark legislation safeguarding tribal rights and provided significant relief to the tribal communities.

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Why are IAS coaching centresbeing probed by the CCPA?

(General Studies- Paper III)

Source : TH

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On October 23, CCPA reveals an investigation into 20 IAS coaching institutes for potential misleading claims and unfair trade practices.

• Four out of the twenty institutes have already faced penalties of Rs 1 lakh each.

 

Key Highlights

• Accusations against the institutes involve making misleading or incomplete disclosures regarding testimonials in their advertisements.
• CCPA notes that institutes use the names and pictures of top rank holders and successful candidates to influence potential aspirants.
• The nature of enrolments, such as the specific course undertaken, is not disclosed in the advertisements.
• CCPA Observations on UPSC CSE Advertising Practices:
  • After the announcement of competitive exam results, including UPSC Civil Services, coaching institutes engage in advertising.
  • Institutes prominently feature names and pictures of top rankers to showcase their enrolment without specifying the nature of enrolment.
  • CCPA notes that often, rank holders in the advertisements have only taken mock interviews, a service provided free of cost by the institutes.
• Violations Under Consumer Protection Act (2019):
  • Definition of Misleading Advertisement: Under Section 2(28) of the Consumer Protection Act, 2019, deliberate concealment of important information qualifies as a ‘misleading advertisement.’
  • Penalties for Violations: First-time violations may result in penalties up to Rs 10 lakh, while subsequent violations could lead to penalties up to Rs 50 lakh.
  • Legal Consequences: Non-compliance may result in additional legal actions if the violations persist.
• UPSC Exam Results Discrepancies:
  • UPSC recommended 933 candidates in 2022, but the coaching institutes under CCPA probe claimed over 3,500 selections.
  • Discrepancies attributed to potential multiple enrolments among students in different institutes.
• Penalties and Legal Actions:
  • Chahal Academy, IQRA IAS, Rau’s IAS Study Circle, and IAS Baba faced penalties.
  • IAS Baba received a stay on the probe, while Rau’s IAS appealed in the National Consumer Disputes Redressal Commission.
  • Vajirao and Reddy Institute, KSG-Khan Study Group IAS, Drishti IAS, Sriram IAS, NEXT IAS, Vision IAS, among others, are currently being probed.
• Institute Submissions and CCPA Concerns:
  • Institutes claimed selections without specifying the nature of enrolment, i.e., test series, learning course, or revision course.
  • During the probe, institutes raised concerns similar to those highlighted by CCPA regarding the non-disclosure of enrolment details.
• Education Sector Advertising Challenges:
  • Education sector, including coaching classes, has become one of the most violative sectors in advertising.
  • Leadership claims, promises of placements in top colleges, and assurances of success are common violations.
  • Fierce competition in education intensifies misleading ads, targeting vulnerable students and parents.
• Market Growth and Projection:
  • Coaching class market in India projected to reach Rs 1.79 lakh crore by 2030.
  • Anticipated Compound Annual Growth Rate (CAGR) of 14.07% from 2023-30.
  • Higher education holds the largest market share, expected to increase from 32.75% to 34.75% by 2030.
• Factors Driving Coaching Industry Growth:
  • Intense competition, especially for entrance exams, drives demand for coaching classes.
  • Students seek coaching to gain a competitive edge and improve academic performance.
• Ecosystem Dynamics:
  • Coaching often starts from age 10 and continues for the next two decades.
  • Delhi is a hub for UPSC CSE coaching, while Kota attracts around two lakh students annually for IIT-JEE coaching.
  • Migration for coaching creates demand for rented accommodation, leading to a thriving real estate market in these areas.

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FATF team in India to hold on-site review meetings

(General Studies- Paper III)

Source : TH

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The Financial Action Task Force (FATF) team is in India for mutual evaluations to assess the effectiveness and implementation of the country’s legal framework against money laundering and terrorist financing.

 

Key Highlights

• Team Composition and Activities:
  • Usually comprises over a dozen members, including FATF Secretariat officials and domain experts.
  • The team is expected to stay in Delhi for about two weeks.
  • Team members will hold meetings with senior government officials, private sector representatives, and may visit Mumbai as well.
  • Agenda: Discussions with the Department of Revenue, Enforcement Directorate, Narcotics Control Bureau, National Investigation Agency, and financial regulators.
• Mutual Evaluation Process:
  • Mutual evaluations involve peer reviews where members from different countries assess each other.
  • Legal, financial, and law enforcement experts are selected for the assessment team.
  • The assessed country provides relevant laws and regulations related to preventing criminal abuse of the financial system.
  • Assessors analyze the information, focusing on the technical requirements of FATF standards, leading to a draft report.
  • A draft report identifies areas of focus for the on-site visit.
  • Mutual Evaluation Report:
    • After the visit, a draft mutual evaluation report covering technical compliance and effectiveness is prepared.
    • The report undergoes cycles of discussions and reviews by the assessed country and independent reviewers.
  • FATF Plenary Discussion:
    • The FATF plenary discusses the findings, ratings, and adopts the final report for publication.
  • The report on India may be discussed during the June 2024 FATF plenary.
  • The FATF team may also meet civil society representatives during its visit.

 

About Financial Action Task Force (FATF)

• The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 by the G7 to combat financial crime.
• Headquartered in Paris, the FATF designs and promotes policies and standards to address money laundering, terrorist financing, and global threats to the financial system.
• Originally focused on countering money laundering, its mandate has expanded to include combating the financing of weapons of mass destruction, corruption, and terrorist activities.
• Almost all developed countries support or are members of the FATF, reflecting its widespread international influence.
• Membership:
  • FATF is a policy-making body comprising member jurisdictions.
  • Membership is open to any country committed to implementing FATF standards.
  • It includes both developed and developing countries.
  • India became Observer at FATF in the year 2006.
  • FATF Plenary adopted the Mutual Evaluation Report on India on 24th June 2010 and on 25th June 2010 admitted India as 34th Country Member of FATF.
• FATF Recommendations:
  • FATF provides a comprehensive set of 40 recommendations covering measures to combat money laundering and terrorist financing.
  • Periodically updates and revises recommendations to address emerging threats and challenges.
• Blacklist and Grey List:
  • Maintains lists of jurisdictions that do not sufficiently address money laundering and terrorist financing.
  • Jurisdictions on the blacklist or grey list may face enhanced scrutiny and measures from the international community.
• Financial Action Task Force currently has 39 member countries including the United Nations and the World Bank.
  • To become a member, a country must be considered strategically important (large population, large GDP, developed banking and insurance sector, etc.), must adhere to globally accepted financial standards, and be a participant in other important international organizations.

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Greenhouse gases hit record high in 2022: UN

(General Studies- Paper III)

Source : TH

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The United Nations, through its World Meteorological Organization (WMO), issued a warning on November 15 regarding record-high greenhouse gas concentrations in the atmosphere in 2022.

• The announcement precedes the COP28 UN climate summit scheduled for November 30 to December 12 in Dubai.

 

Key Highlights

• Record-Breaking Levels:
  • Carbon dioxide (CO2), methane, and nitrous oxide, the main greenhouse gases, all reached record highs in 2022.
  • Concentrations of these gases indicate a continued upward trend, leading to more extreme weather, rising temperatures, and elevated sea levels.
  • Despite the 2015 Paris Agreement’s goal of limiting global warming to “well below” two degrees Celsius and preferably 1.5 degrees Celsius, the report highlights a global mean temperature increase of 1.15 degrees Celsius in 2022.
  • The current trajectory suggests that 2023 is likely to become the warmest year on record.
• Greenhouse Gas Concentrations:
  • In 2022, CO2 concentrations reached 418 parts per million, methane at 1,923 parts per billion, and nitrous oxide at 336 parts per billion.
  • These values represent significant increases compared to pre-industrial levels.
  • The WMO emphasizes the urgent need to reduce fossil fuel consumption to address the escalating greenhouse gas concentrations.
  • Greenhouse gas levels are projected to surpass Paris Agreement targets, resulting in severe environmental and socioeconomic consequences.
• CO2 Impact and Persistence:
  • CO2, accounting for 64 percent of the warming effect, saw concentrations 50 percent above pre-industrial levels in 2022.
  • The persistence of CO2 in the atmosphere will lead to sustained temperature increases even with rapid emission reductions.
• Methane and Nitrous Oxide Challenges:
  • Methane, the second-largest contributor, exhibited steady growth, and nitrous oxide’s increase in 2022 surpassed previous records.
  • Challenges exist in fully understanding the reasons behind methane concentration growth.
• Global Responsibility and G20 Emissions:
  • Around 80 percent of greenhouse gas emissions originate from G20 countries.
  • The bulletin underscores the global responsibility to address emissions and highlights uncertainties in the carbon cycle.
• Scientific Uncertainties and Tipping Points:
  • Scientific uncertainties persist, particularly regarding feedback loops and tipping points in the climate system.
  • Greater information is needed on topics such as carbon fluxes and non-CO2 greenhouse gases.

 

About World Meteorological Organization (WMO)

• The World Meteorological Organization (WMO) is a specialized agency of the United Nations (UN) established in 1950.
• Objective:
  • WMO’s primary goal is to facilitate international cooperation in meteorology, climatology, hydrology, and related fields.
  • It aims to promote the efficient exchange of meteorological information and expertise to enhance global understanding and prediction of weather, climate, water resources, and related environmental phenomena.
• WMO’s headquarters is located in Geneva, Switzerland.
• WMO has a membership of 191 Member States and Territories, making it a comprehensive global organization in the field of meteorology.
• Structure:
  • The organization operates through a governance structure that includes the World Meteorological Congress, the Executive Council, and the Secretariat.
  • The Congress, composed of representatives from WMO Members, meets every four years to set policies and priorities.
• WMO regularly publishes the Greenhouse Gas Bulletin, providing updates on the concentrations of major greenhouse gases in the atmosphere.

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Gold drives trade deficit to new high

(General Studies- Paper III)

Source : TH

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India’s goods exports recorded growth for the second time in the fiscal year 2023-24 in October, showing a 6.2% rise to reach $33.6 billion.

• This growth, although on a low base, reflects positive signs amid challenges.

 

Key Highlights

• Imports Surge to Record High:
  • Imports in October surged to a record high of $65.03 billion, marking a 12.3% increase compared to the same period last year.
  • The notable spike in imports is attributed to higher inflows of gold and other items, including oil, electronics, and gems and jewellery.
  • Consequently, India’s monthly goods trade deficit reached an all-time high of $31.46 billion, surpassing the previous record set in September 2022 ($29.23 billion).
  • The widening trade deficit poses economic challenges, driven by robust import growth.
• Yearly Export Comparison:
  • In the fiscal year 2022-23, India’s goods exports had crossed $450 billion.
  • However, between April and October 2023, merchandise exports stand at nearly $245 billion, indicating a 7% decline compared to the same period last year.
• Factors Influencing Import Surge:
  • Analysts noted that apart from a significant rise in gold imports (95.4% increase to $7.2 billion), other factors contributing to the record import bill include increased imports of oil, electronics, gems and jewellery.
  • The overall imports in October were 20.8% higher than September.
  • Trade analysts observe a broad-based increase in imports, with rising demand in various sectors such as electronics, gems and jewellery, and manufacturing imports like chemicals, machinery, and base metals.
• The economic landscape presents challenges with the record trade deficit, but the export growth in October and the expectation of normalization in imports indicate both challenges and positive indicators in India’s trade scenario.

Understanding the consequence of widening trade deficit on economy!

The widening trade deficit can have several consequences on the economy of a country like India:

• Current Account Imbalance:
  • A trade deficit contributes to a current account imbalance.
  • When a country imports more than it exports, it needs to finance the deficit either by attracting foreign capital or by using its foreign exchange reserves.
  • Persistent current account deficits can lead to external debt accumulation.
• Pressure on Currency:
  • A sustained trade deficit puts pressure on the country’s currency.
  • To settle trade imbalances, the country might need to sell its own currency to buy foreign currencies, leading to depreciation.
  • A depreciating currency can result in higher import costs and inflationary pressures.
• Impact on Foreign Exchange Reserves:
  • The widening trade deficit can deplete a country’s foreign exchange reserves as it uses reserves to pay for the excess of imports over exports.
  • In the long run, this might affect the country’s ability to manage its external obligations and respond to economic shocks.
• Inflationary Pressures:
  • A trade deficit can contribute to inflationary pressures.
  • If a country is heavily dependent on imports for essential goods and commodities, a rising trade deficit can lead to higher prices domestically as the cost of imports increases.
• Dependency on External Financing:
  • To sustain a trade deficit, a country may become increasingly dependent on external financing.
  • This reliance on foreign capital inflows makes the economy vulnerable to changes in global investor sentiment, interest rates, and economic conditions.
• Impact on Employment:
  • A persistent trade deficit may affect domestic industries, particularly if imports substitute domestically produced goods.
  • This can lead to job losses in certain sectors, impacting employment levels and potentially causing social and economic challenges.
• Macroeconomic Stability:
  • The widening trade deficit can pose challenges to overall macroeconomic stability.
  • It may lead to higher fiscal and current account deficits, affecting the government’s ability to implement growth-oriented policies without risking economic imbalances.

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