CURRENT AFFAIRS – 21/12/2023

CURRENT AFFAIRS – 21/12/2023

Lok Sabha passes Bills to replace British-era criminal laws

(General Studies- Paper II)

Source : TH

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The Lok Sabha recently approved three amended Bills that aim to modernize India’s criminal laws, replacing antiquated statutes rooted in colonial times.

• The legislation includes significant reforms, such as the integration of terrorism offenses into general crime laws, the elimination of the crime of sedition, and the introduction of capital punishment for mob lynching.

Key Highlights

• Bills and Replacements:
  • Bharatiya Nyaya (Second) Sanhita Bill (BNSS): To replace the Indian Penal Code, 1860.
  • BharatiyaSakshya (Second) Bill (BSS): To replace the Indian Evidence Act, 1872.
  • BharatiyaNagarik Suraksha (Second) Sanhita Bill (BNSSS): To replace the Code of Criminal Procedure, 1898.
• Key Changes:
  • Incorporating Terrorism into General Crime Laws:
    • The BNSS defines terrorism as a separate category in the general crime law for the first time.
    • Home Minister Amit Shah stressed that this move aims to provide a comprehensive legal framework to combat terrorism.
  • Removal of Sedition:
    • The revised laws eliminate the crime of sedition, marking a departure from colonial-era legal provisions that were criticized for curbing freedom of expression.
  • Mob Lynching Punishable by Death:
    • The Bills introduce capital punishment for mob lynching cases, reflecting a stern stance against such acts of violence.
  • Exclusion of Doctors from Criminal Prosecution:
    • An amendment to the BNSS excludes doctors from criminal prosecution for death due to medical negligence.
  • Additionally, hit-and-run accident cases are now punishable by ten years of imprisonment.
  • The term Rajdroha (offense against the government) has been replaced by deshdroha (offense against the nation).

Summary: Significant Revisions in Criminal Justice Laws

• The reforms, encompassed in the BharatiyaNagarik Suraksha (Second) Sanhita, 2023, Bharatiya Nyaya (Second) Sanhita, and BharatiyaSakshya (Second) Bill, 2023, reflect a substantial overhaul.
• BharatiyaNagarik Suraksha (Second) Sanhita, 2023:
  • Sections: Increased from 484 to 531.
  • Changes: 177 sections modified; 9 new sections and 39 sub-sections added.
  • Explanations: 44 new explanations incorporated.
  • Timelines: Introduced in 35 sections.
  • Repealed: 14 sections.
• Bharatiya Nyaya (Second) Sanhita:
  • Sections: Reduced from 511 to 358.
  • New Offences: 31 included.
  • Imprisonment Period: Increased for 41 offences.
  • Penalty: Hiked in 82 offences.
  • Compulsory Minimum Punishment: Introduced in 25 offences.
  • Community Service: Added as a penalty for 6 offences.
  • Repealed: 19 sections.
• BharatiyaSakshya (Second) Bill, 2023:
  • Sections: 170, compared to 167 in the Indian Evidence Act.
  • Changes: 24 sections modified.
  • New Sections: Two additions.
  • Repealed: Six sections.

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India’s defence budgeting and the point of deterrence

(General Studies- Paper III)

Source : TH

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The Indian Armed Forces, facing challenges in modernizing and maintaining optimal strength, particularly in the Indian Air Force (IAF), prompt concerns about the impending defense budget allocation amid electoral considerations.

• The Medium Multi-Role Combat Aircraft (MMRCA) program, labeled the ‘mother of all procurements,’ faced limitations as the purchase of 36 Rafale jets fell short of the initial requirement of 126 aircraft.
• Currently, the IAF squadron strength is a mere 32, expected to reach 35 in the next decade.

Key Highlights

• Budgetary Constraints:
  • The defense budget, crucial for maintaining deterrence posture, may face potential cuts in the upcoming Budget 2024-25 due to election-related sops and the perennial challenge of balancing defense expenditures with other priorities.
  • The central question revolves around whether ‘affordable defense’ dictated by budget constraints will be prioritized over ‘affordable effectiveness,’ which emphasizes optimal military capabilities.
  • The IAF’s decision to acquire 97 more Tejas Mk1A fighters, deviating from the planned 114 multi-role fighter aircraft project, highlights this dilemma.
  • The evolving security scenario, particularly on the northern borders, necessitates a judicious assessment of defense planning.
  • The threat from the western neighbour, despite current diplomatic postures, remains a live concern, demanding preparedness for various scenarios.
• Need for Comprehensive Military Modernization:
  • Acknowledging the necessity of sea power to deter China and modernization requirements in the Army, the defense budget must be strategically planned.
  • The size of the Army poses considerable budgetary requirements.
  • In light of the Russia-Ukraine war, the armed forces now envision extended war scenarios, contrasting with previous plans for short, intense conflicts.
  • The shift in perspective raises questions about India’s industrial base preparedness, considering the focus on the Atmanirbhar Bharat (self-reliant India) initiative.
  • A recent article on War on the Rocks titled ‘You go to war with the industrial base you have, not the industrial base you want’ provides valuable insights into the debate.
  • It underscores the importance of a realistic assessment of the industrial base and aligning it with strategic goals.
• Budgetary Constraints and Research and Development Challenges:
  • India’s defense budget, when adjusted for inflation, has remained relatively stagnant.
  • The percentage of defense expenditure in the central government budget has declined from 16.4% in 2012-13 to 13.3% in 2022-23.
  • A deficit of ₹13,746 crore in the allotted capital acquisitions budget for 2023–24 raises concerns.
  • India’s research and development expenditure stands at 0.7% of its GDP, ranking 53rd globally according to the Global Innovation Index 2022.
  • In contrast, China spent $421 billion in 2022, constituting 2.54% of its GDP.
  • The need for a substantial increase in R&D allocation is underscored.
• Indigenization Initiatives:
  • The government’s emphasis on indigenization through schemes like Innovations For Defence Excellence (iDEX) and service-specific projects is lauded.
  • However, the long gestation period for such initiatives requires sustained momentum, consistent policy-making, and adequate defense budgeting.
  • Private Sector Involvement:
    • Allocating 25% of the research and development budget for the private sector is a positive step.
    • The restructuring of the Ordnance Factory Board and the creation of negative lists for imports aim to boost confidence in the private sector by ensuring assured contracts.
  • Changing Regional Dynamics:
    • China’s assertiveness has led to shifts in regional dynamics, such as Japan doubling its defense budget and increased arming of Taiwan by the United States.
    • Hence, a realistic defense budget considering the evolving geopolitical landscape becomes more critical.

About Innovations for Defence Excellence (iDEX)

• Innovations For Defence Excellence (iDEX) is an initiative launched by the Government of India with the aim of fostering innovation and promoting indigenous solutions in the defense and aerospace sectors.
• The program seeks to leverage the capabilities of startups, micro, small, and medium enterprises (MSMEs), and individual innovators to contribute to the modernization and self-reliance of the Indian Armed Forces.
• iDEX is funded and managed by the Defense Innovation Organization (DIO), established as a ‘not for profit’ company under Section 8 of the Companies Act 2013.
• HAL (Hindustan Aeronautics Limited) and BEL (Bharat Electronics Limited), both Defense Public Sector Undertakings (DPSUs), serve as the founder members of DIO.
• Functional Autonomy:
  • iDEX operates as the executive arm of DIO, responsible for carrying out all necessary activities related to defense innovation.
  • DIO, as the governing body, provides high-level policy guidance to iDEX, ensuring strategic oversight and direction.
  • iDEX operates with functional autonomy, allowing it to execute its activities independently within the framework of the policies and guidelines set by DIO.
• Defence India Start-up Challenge (DISC) is an integral component of iDEX, involving the launch of challenges with specific Problem Statements (PS) provided by the Armed Forces and Ordnance Factory Board (OFB)/DPSUs.

Note: India is the world’s largest defence equipment importer and is expected to spend around USD 220 Billion in the coming decade to modernize its armed forces.

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What causes inflation in India: Demand or supply issues?

(General Studies- Paper III)

Source : TH

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An article published in the Reserve Bank of India’s December bulletin analyzes the complex interplay between supply and demand factors in shaping inflation trends in India.

• Traditionally, inflation in the country has been predominantly influenced by supply-related factors.
• However, the article notes instances, such as during the Russia-Ukraine conflict, when demand factors have played a significant role in driving inflationary pressures.

Key Highlights

• Influence of Supply and Demand during COVID-19 Waves:
  • The two waves of COVID-19 in India were characterized by supply disruptions as the main driver of inflation.
  • Lockdowns led to a decline in production and demand, causing a sharp drop in economic growth and a decrease in commodity prices.
  • As the economy reopened with the distribution of vaccines and the release of pent-up demand, demand recovered more rapidly than supply.
  • This imbalance resulted in increased pressures on commodity prices.
• Impact of Russia-Ukraine Conflict:
  • A shift in driving forces toward factors related to demandoccured following the Russia-Ukraine conflict in 2022.
  • The conflict intensified supply chain challenges and added to commodity price pressures.
• Analysis of Consumer Expenditure Data:
  • Using data from the Centre for Monitoring Indian Economy’s consumer expenditure data, an attempt is made to discern whether inflation in India is primarily driven by supply-side or demand-side factors.
  • A categorization approach has been employed based on unexpected shifts in both prices and quantities within a month to determine the driving forces behind inflation.
  • Inflation is labelled as demand-driven when there is an unforeseen shift in both prices and quantities in the same direction, reflecting changes in demand.
  • Supply-driven inflation is identified when unexpected changes in prices and quantities move in opposite directions, indicating shifts in supply.
  • The analysis, spanning January 2019 to May 2023, employs a methodology to categorize inflation drivers into supply-side and demand-side factors, revealing nuanced trends across Consumer Price Index (CPI) subgroups.
  • Categories such as vegetables, oils and fats, milk, eggs, pulses, and sugar frequently encounter supply-side constraints, impacting their inflation trends.
  • Items like non-alcoholic beverages, personal care products, and health-related goods are primarily influenced by demand-side factors, highlighting the diverse nature of inflation drivers.
• Contribution to CPI Subgroup Level Inflation:
  • Chart 1 illustrates the percentage contribution of demand and supply factors to CPI subgroups level inflation during the specified period.
  • Chart 2: By combining demand and supply factors at the subgroup level using CPI weights, the analysis assesses overall headline inflation trends.
• Dominance of Supply Factors:
  • Findings reveal that supply factors predominantly drove inflation during specific periods:
    • October 2019-January 2020 (excess rainfall causing disruptions), pandemic stages (restrictions and supply chain issues), and the onset of the Russia-Ukraine conflict (supply shortages and global commodity price spikes).
    • On average, supply-side factors accounted for approximately 55% of CPI headline inflation from January 2019 to May 2023.
  • Fluctuations in Demand-side Impact:
    • The impact of demand-side factors on headline inflation decreased during the COVID-19 crisis, reaching 27.1% in 2020 from 41.5% in 2019.
    • Intermittent increases in demand-side impact post-COVID-19 waves and after the Russia-Ukraine conflict contributed notably to the peak in headline inflation in April 2022.
    • Over the entire period, the contribution of demand drivers to inflation stood at 31%.

Understanding Inflation

• Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.
• It is typically expressed as an annual percentage, and its presence indicates a decrease in the purchasing power of a currency.
• Inflation can be influenced by various factors, including changes in demand and supply dynamics, monetary policy, fiscal policy, and external events.
• Demand-Side Inflation:
  • Demand-side inflation occurs when the overall demand for goods and services in an economy outpaces its productive capacity.
  • This situation leads to an increase in prices as businesses struggle to meet the heightened demand.
  • Key factors contributing to demand-side inflation include:
    • Increased Consumer Spending: When consumers collectively increase their spending, it can lead to a surge in demand for goods and services, putting upward pressure on prices.
    • Government Spending: An increase in government expenditure, particularly on public goods and services, can boost overall demand in the economy.
    • Low Interest Rates: Lower interest rates set by central banks can stimulate borrowing and spending, contributing to increased demand and potential inflation.
    • Consumer and Business Confidence: Positive sentiments among consumers and businesses can lead to higher spending, further driving demand-side inflation.
  • Supply-Side Inflation:
    • Supply-side inflation, on the other hand, is driven by factors related to the production and supply of goods and services.
    • It occurs when the economy’s ability to produce goods and services is constrained, leading to an imbalance between supply and demand.
    • Key factors contributing to supply-side inflation include:
      • Supply Constraints: Issues such as shortages of raw materials, disruptions in the supply chain, or natural disasters can constrain the production of goods, leading to higher prices.
      • Increasing Production Costs: If the costs of production, including labour, energy, or raw materials, rise significantly, producers may pass on those increased costs to consumers through higher prices.
      • Technology and Innovation: Advancements in technology and innovations can improve productivity, but they may also lead to higher costs in the short term as businesses invest in new technologies.
      • Government Regulations: Policies and regulations that affect the supply chain, such as trade restrictions or excessive bureaucracy, can contribute to supply-side constraints and inflation.

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Outcomes of the COP-28 climate summit

(General Studies- Paper III)

Source : TH

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The 28th session of the Conference of the Parties (COP), a gathering of countries under the United Nations Framework Convention on Climate Change (UNFCCC), took place in Dubai.

• While progress was made in certain areas, challenges and concerns also persist in certain areas.

Key Highlights

• Loss and Damage Fund Operationalized:
  • Following the agreement at COP27, the ‘Loss and Damage’ (L&D) fund was operationalized at COP28.
  • However, only a meager $790 million has been pledged so far, falling significantly short of the required $100 billion to $400 billion annually.
  • The U.S., the largest historical emitter, committed only $17.5 million.
  • Concerns include limited access to the fund, questions about legal autonomy, flexibility, and decision-making authority, and skepticism about the fund’s responsiveness to emergencies.
• Ambitious Emission Reduction Targets:
  • The summit witnessed the conclusion of the first global stocktake (GST), allowing countries to assess collective progress towards the goals of the Paris Agreement.
  • Countries at COP28 committed to transitioning away from fossil fuels, aiming to triple renewable energy capacity by 2030.
  • Over 20 nations pledged to triple their nuclear energy capacity.
  • The transition from fossil fuels is limited to energy systems, allowing their continued use in plastics, transport, and agriculture.
  • The declaration mentions ‘transitional fuels,’ including natural gas, for energy security, raising concerns about true climate justice.
  • The call for accelerated climate mitigation includes references to unproven and risky technologies like carbon capture and storage (CCS) and carbon removal.
• Challenges and Concerns:
  • Limited funding for the L&D fund and concerns about its administration and accessibility.
  • The inclusion of ‘transitional fuels’ and the reliance on unproven technologies in emission reduction strategies.
  • The need for a more comprehensive approach to address climate-related challenges across various sectors.
• Global Green-Finance Mechanisms:
  • The GST framework emphasizes the responsibility of developed nations in climate finance, highlighting the need for private sector involvement to address financial shortfalls.
  • COP28 established innovative global green-finance mechanisms, including:
    • Fresh support of $3.5 billion to the Green Climate Fund for adaptation and mitigation projects.
    • $188 million pledged to the Adaptation Fund.
    • New partnerships for public-private investments in renewable energy, sustainable agriculture, and infrastructure.
  • Introduction of ALTÉRRA, an investment initiative aiming to mobilize $250 billion globally by 2030.
• Despite these efforts, the available funds fall short of the estimated $194-366 billion annual funding requirement for adaptation, as per the United Nations.
• India’s Position on Climate and Health Declaration:
  • The U.A.E. declaration on climate and health, signed by 123 countries, commits $1 billion collectively to address climate-health impacts.
  • India did not sign the declaration, citing concerns that reducing greenhouse gas emissions in the health sector might compromise healthcare requirements during the country’s ongoing healthcare infrastructure growth.
• Global Methane Pledge:
  • The Global Methane Pledge, launched at COP26, gained renewed attention at COP28.
  • The Climate and Clean Air Coalition became the new secretariat, with partners announcing over $1 billion in new grants for methane emission reduction projects.
  • More than 150 countries signed the pledge, but India did not participate due to its focus shift from carbon dioxide to methane, a gas with a lower lifetime.
  • Methane emissions in India primarily come from rice cultivation and livestock rearing, supporting small and marginal farmers.
• Landmarks and Acknowledgments:
  • COP28 featured several firsts, including a declaration on climate and health, recognition of nature-based solutions for biodiversity and climate, and a call to transition away from fossil fuels.
  • A landmark declaration involving 134 countries committed to transitioning to sustainable and resilient food systems.
  • Emphasis on increasing renewable energy targets is seen as a significant step forward.
• Contentious Issues:
  • Fossil-fuel subsidies emerged as a key contention, with developed countries advocating for a phase-out, while developing countries, including India, resisted due to economic growth implications and social considerations.
  • Disagreements persisted on market mechanisms, financial resource allocation, the role of the World Bank in managing the Loss and Damage (L&D) fund, and private sector engagement in climate action.
  • Developing countries emphasized common and differentiated responsibilities, urging increased climate finance and technology transfer for just job transitions and inclusive development.
• Areas of Concern:
  • Issues surrounding L&D metrics, fund management, and disbursal raised concerns about the effectiveness of climate finance mechanisms.
  • Contentious topics included market mechanisms, the role of risky technologies, continued use of fossil fuels in various sectors, and the designation of natural gas as a transitional fuel.

About ALTÉRRA: A Climate-Focused Investment Vehicle

• ALTÉRRA, backed by a substantial $30 billion commitment from the UAE, aspires to mobilize an unprecedented $250 billion globally by 2030, establishing itself as a foremost private entity for climate change action.
• Positioned at the forefront of climate-conscious investing, ALTÉRRA’s mission revolves around activating a new global climate economy, promoting innovation, amplifying private capital, and dismantling investment barriers in emerging markets and developing economies (EMDEs).
• Through the ALTÉRRA ACCELERATION Fund ($25 billion) and ALTÉRRA TRANSFORMATION Fund ($5 billion), the initiative aims to swiftly deploy capital in high-impact projects across emerging markets, emphasizing a transition to a net-zero and climate-resilient future.
• ALTÉRRA envisions becoming a global leader, fostering an equitable climate finance system, particularly benefitting the Global South, including Least Developed Countries (LDCs) and Small Island Developing States (SIDS).
• ALTÉRRA focuses on four key pillars: Energy Transition, Industrial Decarbonization, Sustainable Living, and Climate Technologies, guided by a robust Climate Impact Framework ensuring accountability, transparency, and positive outcomes.
• The initiative aligns with COP28’s call for inclusivity by offering opportunities for LDCs and SIDS to leverage concessional finance for climate action.

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WHO tags JN.1 strain as ‘variant of interest’

(General Studies- Paper III)

Source : The Indian Express

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The World Health Organization (WHO) has officially designated the Covid-19 sub-variant JN.1 as a “variant of interest” (VOI), separate from its ancestor BA.2.86, commonly known as Pirola.

Key Highlights

• This decision is a response to the increasing prevalence of JN.1 in several countries. Initially considered a VOI within the Pirola sub-lineages, JN.1 has now been recognized independently due to its rapid spread.
• The WHO statement emphasizes that, as of now, there is no evidence suggesting any additional public health risks associated with the JN.1 variant.
• However, concerns have been raised about the potential for an increased burden of respiratory infections, especially with the onset of winter in the Northern Hemisphere.
• The statement reassures that existing vaccines continue to offer protection against severe disease and death caused by JN.1.
• The designation of a variant as a VOI by WHO typically occurs when it demonstrates a growth advantage over other circulating variants or undergoes changes in key characteristics such as transmissibility, virulence, antibody evasion, or susceptibility to treatments and diagnostics.
• Globally, JN.1 cases have been reported in various regions, including the United States, Europe, Singapore, and China.
• In India, there have been reports of at least one JN.1 case from Kerala and around 15 cases from Goa.
• Singapore, in particular, has experienced a notable increase in JN.1 cases, constituting the majority of Covid-19 cases in the country.
• The United States has also observed JN.1 accounting for a significant percentage (15% to 29%) of circulating Covid-19 variants.
• The WHO will continue monitoring and tracking the global spread of the JN.1 variant and assessing its public health risk.

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