CURRENT AFFAIRS – 23/10/2023

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CURRENT AFFAIRS – 23/10/2023

CURRENT AFFAIRS – 23/10/2023

Army’s Project Udbhav to rediscover ‘Indic heritage of statecraft’ from ancient texts

(General Studies- Paper III)

Source : TH

The Indian Army has initiated a project called Project Udbhav in collaboration with the United Service Institution of India (USI), a defense think-tank.

This project aims to explore the profound Indic heritage of statecraft and strategic thoughts derived from ancient Indian texts related to statecraft, warcraft, diplomacy, and grand strategy.

Key Highlights

The USI, as part of Project Udbhav, organized a Military Heritage Festival on October 21 and 22.
The festival’s purpose was to educate future thought leaders about comprehensive national security, India’s strategic culture, military heritage, education, modernization of security forces, and the concept of “Atmanirbhar Bharat” (self-reliant India).
Project Udbhav intends to delve into India’s rich historical narratives in various domains, including indigenous military systems, historical texts, regional texts and kingdoms, thematic studies, and intricate Kautilya Studies.
These studies aim to shed light on India’s ancient wisdom in statecraft and strategic thinking.
A panel discussion was conducted as part of this initiative to explore the evolution of Indian military systems, warfighting strategies, and strategic thought.
The discussion focused on current research in these areas and outlined future directions for research and development.
The Indian Army’s Project Udbhav underscores the importance of India’s age-old wisdom in areas like statecraft, strategy, diplomacy, and warfare.
It seeks to bridge the historical and the contemporary by integrating ancient wisdom into modern military pedagogy.
Development of an Indigenous Strategic Vocabulary:
- A significant objective of Project Udbhav is not only to rediscover these historical narratives but also to develop an indigenous strategic vocabulary deeply rooted in India’s multifaceted philosophical and cultural heritage.
- This effort aims to combine traditional wisdom with modern military education, creating a unique and relevant approach to defense and security.

About the United Service Institution of India (USI)

The United Service Institution of India (USI) is a prominent think-tank and research institute based in India.
It has a rich history and plays a vital role in the study of defense and security issues in the country.
The USI was established in 1870, making it one of the oldest defense and security think-tanks in India.
The institute was founded by Colonel (later Major General) Sir Charles MacGregor.
- Colonel MacGregor was a soldier-scholar who played a pivotal role in the establishment of the institution.
Mission:
- The primary mission of USI is to promote research and understanding of national security, defense, and strategic issues.
- It serves as a hub for intellectual discourse, analysis, and research related to these fields.
Location:
- Initially, the institution was housed in the old Town Hall at Shimla, situated in the foothills of the Himalayas.
- Over time, the USI moved to different locations, including the Army Headquarters.
- In 1908, the institution obtained its own building, which was constructed near the Cumbermere Post Office in the Shimla Hills.
The institution provides training and educational programs to military personnel, civilian defense officials, and aspiring defense professionals.
- These programs aim to enhance the knowledge and skills of individuals involved in defense and security.
USI maintains a comprehensive library and archives with a vast collection of books, documents, and historical records related to defense, military history, and national security.
USI plays a crucial role in fostering cooperation and collaboration between the Indian military, academic institutions, and international defense organizations.
- It serves as a platform for dialogue on strategic and defense matters at both the national and international levels.

Butterfly makes a rare call in Himachal

(General Studies- Paper III)

Source : TH

In Himachal Pradesh’s Chamba district, a rare butterfly species known as the Paintbrush Swift has been sighted and documented for the first time.

This discovery is part of the Wild Bhattiyat Project initiated by the Bhattiyat Forest Range in 2022.
Himachal Pradesh is known for its rich biodiversity, including a diverse range of butterfly species.

Key Highlights

The Paintbrush Swift butterfly (Baorisfarri) belongs to the Hesperiidae family and is considered rare in the western Himalayas.
This particular species had not been photographed or documented in Himachal Pradesh since its original discovery in 1878.
The first description of the Paintbrush Swift was made by lepidopterist Frederic Moore over 145 years ago in the eastern Himalayas.
Wild Bhattiyat Project:
- The Wild Bhattiyat Project, led by Sanjeev Kumar, the Range Forest Officer at the Bhattiyat Forest Range, was instrumental in making this discovery.
- Since its launch, the project has documented 120 butterfly species, including some uncommon ones like the anomalous nawab, blank swift, tailed jay, and siren.
- The Paintbrush Swift is a significant find, as it is the first time it has been photographed in the lower hills of the Dhauladhar mountain range.
Habitat and Distribution:
- The habitat distribution of the Paintbrush Swift is common in northeast, central, and south India, but it is considered rare in Uttarakhand.
- The butterfly’s characteristics include two separated spots in the upper forewing cell, which distinguishes it from closely related species like the blank swift.
Challenges Facing Butterfly Populations:
- LovishGarlani, a butterfly expert and researcher, highlighted the challenges facing butterfly populations.
- Butterflies depend on wild host and nectar plants, making them vulnerable to environmental changes.
- Factors such as habitat loss, scarcity of larval host plants, pesticide use, deforestation, and climate change contribute to the decline in butterfly populations.
Conservation Efforts:
- Garlani stressed the urgent need for butterfly conservation in Himachal Pradesh.
- He recommended the establishment of butterfly parks, conservation reserves, and butterfly rearing or breeding centers.
- Emphasis should also be placed on planting native host plant species and improving habitat.
- Raising awareness about the importance of butterflies through community participation is essential, especially for high-altitude butterfly species facing significant threats due to habitat destruction.

Note: A lepidopterist is a scientist or an enthusiast who specializes in the study of lepidoptera, which is the scientific order that includes butterflies and moths.

What is Wild Bhattiyat Project?

The “Wild Bhattiyat Project” is an initiative led by the Bhattiyat Forest Range within the Dalhousie Forest Division of the Himachal Pradesh Forest Department.
This project focuses on the study, documentation, and conservation of biodiversity, particularly butterflies and other wildlife, in the Bhattiyat region of Himachal Pradesh.
It aims to identify and record various species of flora and fauna, particularly butterflies and other wildlife.

Does India need to relook the Dam Safety Act?

(General Studies- Paper II and III)

Source : TH

India’s Dam Safety Act (DSA) was passed in late 2021, aiming to address the safety risks associated with its aging dam infrastructure.

The Act came in response to the critical need for better surveillance and maintenance to prevent dam-related disasters.

Key Highlights

Provisions of the Dam Safety Act: The Dam Safety Act of 2021 introduces several key provisions:
- Establishment of National and State Bodies:
  - The Act mandates the creation of national and state-level bodies responsible for implementing dam safety measures.
  - These include a National Committee on Dam Safety and a National Dam Safety Authority at the national level.
- Responsibilities of National Bodies:
  - The Chairman of the Central Water Commission (CWC) heads the national-level dam safety protocols.
  - The National Committee on Dam Safety is responsible for overseeing dam safety policies and regulations.
- State-Level Bodies:
  - Each state is required to establish a State Committee on Dam Safety (SCDS) and a State Dam Safety Organization (SDSO).
  - These bodies are responsible for implementing dam safety measures at the state level and resolving any state-level disputes.
- Emergency Action Plans:
  - States are required to develop emergency action plans for dams.
  - These plans ensure that authorities can respond swiftly in case of emergencies such as dam failures.
- Classification of Dams:
  - States must classify dams based on their hazard risk.
  - This classification helps in determining the level of safety measures required for each dam.
- Dams must undergo regular inspections to assess their structural integrity and safety.
- The Act calls for the establishment of emergency flood warning systems to provide early alerts in the event of potential dam failures or flooding.
- Periodic safety reviews and risk assessment studies are essential components of ensuring dam safety.
- Reporting of Dam Failures:
  - An important aspect of the Dam Safety Act is the requirement for states to report and record incidents of dam failures.
  - Historically, there was no statutory provision for systematic reporting of dam failures, and there was no single agency responsible for tracking such data.
  - The Central Water Commission (CWC) maintained records, but they were not regularly updated.
  - The Act seeks to rectify this by ensuring comprehensive and up-to-date reporting of dam failures.
- Case Example: Teesta III Dam Failure:
  - A recent glacial lake outburst flood (GLOF) in North Sikkim’s South Lhonak Lake resulted in the destruction of one of India’s largest hydropower projects, the Teesta III dam at Chungthang.
  - This incident highlighted the urgent need for the proper implementation of the Dam Safety Act, as there were no early warning systems, risk assessments, or preventive measures in place as required by the Act.
- Consequences of Non-Compliance:
  - Non-compliance with the Dam Safety Act can lead to significant penalties, including imprisonment and fines.
  - If obstruction or refusal to follow directions results in loss of lives or imminent danger, the responsible entity may face imprisonment for up to two years.
  - An example of such penalties occurred in February, with the Sikkim High Court ordering the Gati Hydropower Project company to pay ₹70 lakh to two widowed mothers for their non-compliance with the Act.
- Challenges in Implementation:
  - Blind Spots in Legislation:
    - The Sikkim incident highlights shortcomings in both the legislation and its implementation.
    - The Dam Safety Act does not sufficiently promote risk-based decision-making and lacks incentives for transparency.
    - The frequency and scale of dam-related disasters reveal a pattern of neglect, often referred to as “natural disasters” when there is nothing inherently natural about them.
  - Lack of Transparency:
    - The Dam Safety Act should allow stakeholders to access information easily.
    - However, transparency is limited in India’s framework.
    - Information about dam safety, institutional functions, reports, decisions, and more should be readily available to the public.
    - This information is often inaccessible, hindering transparency and public participation.
  - Conflict of Interest:
    - National and state bodies responsible for dam safety frequently comprise government employees and engineers involved in these projects.
    - This compromises objective decision-making and lacks individuals with a proven track record of making independent decisions.
  - Complexities of Dam Safety:
    - Dam safety is a multifaceted endeavor involving various aspects, including design, construction, maintenance, operation, data recording, forecasting, and emergency planning.
    - The Sikkim GLOF incident exposed shortcomings at multiple levels, from dam design to spillway capacity.
  - Hazard Profiling and Assessment:
    - Hazard risks associated with dams fluctuate in response to factors like climate change, urbanization, and water usage.
    - The Act mandates periodic reviews, fresh inundation maps, and new rule curves to ensure downstream safety.
    - Unfortunately, such reviews are often neglected, or their findings are not easily accessible to the public.
  - Comprehensive Safety Evaluation:
    - The Act requires dam builders to conduct comprehensive dam safety evaluations, but there is no standardized method for analyzing and reporting failures.
    - Some governments, like Himachal Pradesh, have taken action against hydroelectric projects for non-compliance with the Dam Safety Act.
  - While the Dam Safety Act in India aims to improve dam safety, there are significant challenges in its implementation.
  - Addressing these issues, including transparency and conflicts of interest, is vital to ensure the safety of dams and prevent catastrophic incidents.

Russia Passes Bill to Revoke CTBT Ratification

(General Studies- Paper II, Page 13)

Source : TH

Russia has intensified tensions with the United States by passing a bill that revokes its ratification of the Comprehensive Nuclear Test Ban Treaty (CTBT).

The move follows President Vladimir Putin’s call for the Russian Parliament to mirror the U.S.’s position regarding the treaty.
This action raises concerns about the future of nuclear disarmament efforts and global security.

Key Highlights

Background on the CTBT:
- The Comprehensive Nuclear Test Ban Treaty (CTBT) aims to ban all nuclear explosions, whether for military or peaceful purposes.
- To date, 187 countries have signed the treaty, and 178 have ratified it.
- However, the treaty has not legally come into force and requires ratification by 44 specific countries that participated in the 1996 session of the Conference on Disarmament.
- These countries possessed nuclear power or research reactors at that time.
Status of Key Annex 2 Countries:
- North Korea, India, and Pakistan have not signed the CTBT.
- China, Egypt, Iran, Israel, and the United States have signed but not ratified the treaty.
- Nine of the 44 countries have nuclear weapons, while the remaining 35 possess nuclear power and research reactors.
Historical Context:
- The Limited Test Ban Treaty of 1963 (also known as the Partial Test Ban Treaty) was the first international effort to restrict nuclear testing, prohibiting tests in the atmosphere, underwater, and in outer space.
- The Nuclear Non-Proliferation Treaty (NPT) of 1968 aimed to address concerns about nuclear stockpiling, particularly during the Cold War era.
Creation of the CTBT:
- Negotiations for the CTBT began in 1994 and concluded in 1996 when the treaty text was adopted by the United Nations General Assembly.
- The CTBT establishes a comprehensive verification regime for monitoring and detecting nuclear test explosions.
- It includes the International Monitoring System (IMS), the International Data Centre, and On-Site Inspections.
Positive Impact on Nuclear Non-Proliferation:
- Despite the CTBT’s ongoing ratification challenges, it has contributed to global nuclear non-proliferation.
- Since the treaty was open for signatures in 1996, there have been significantly fewer nuclear tests conducted compared to the period before its adoption.
Russian Actions and Implications:
- Russia’s decision to revoke its CTBT ratification could encourage other countries to follow suit, potentially reigniting the nuclear arms race.
- The timing is significant, coinciding with Russia’s perceived stagnation in conventional efforts in the Ukraine conflict.
- Western powers, such as the U.S. and the European Union, view Putin’s threats regarding Ukraine as potentially nuclear in nature.
- Ukraine sees Russia’s actions as a form of “nuclear blackmail,” while Moscow contends that changing its status does not indicate an intent to conduct a nuclear test, emphasizing that it won’t do so unless the U.S. takes such action.

About Nuclear Non-Proliferation Treaty (NPT)

The Nuclear Non-Proliferation Treaty (NPT) is an international treaty designed to prevent the proliferation of nuclear weapons and promote disarmament.
It is considered one of the cornerstones of global efforts to control the spread of nuclear arms.
Background:
- The NPT was first proposed by the United States in 1966 and negotiated at the United Nations.
- It opened for signatures on July 1, 1968, and entered into force on March 5, 1970.
Three Pillars:
- The NPT is built on three main pillars:
  - preventing the spread of nuclear weapons and nuclear weapon technology (non-proliferation),
  - facilitating nuclear disarmament, and
  - promoting the peaceful use of nuclear energy (cooperation).
- Key Provisions and Objectives:
  - Preventing Nuclear Proliferation:
    - The NPT aims to prevent the further spread of nuclear weapons and nuclear weapon technology to additional countries.
    - Nuclear-armed states, recognized as those that tested a nuclear explosive device before January 1, 1967, commit to not transferring nuclear weapons or assisting non-nuclear states in acquiring them.
  - Promoting Disarmament:
    - The treaty recognizes the need for nuclear disarmament and obligates nuclear-armed states to work towards disarmament negotiations in good faith.
    - Article VI of the NPT is often cited as the cornerstone of disarmament efforts, requiring nuclear-armed states to pursue negotiations on effective measures relating to nuclear disarmament.
  - Peaceful Uses of Nuclear Energy:
    - The NPT recognizes the right of all signatory states to access nuclear technology for peaceful purposes, such as energy production and scientific research.
  - Safeguards and Verification:
    - The International Atomic Energy Agency (IAEA) is responsible for verifying that states are not diverting nuclear materials or technology from peaceful to military purposes.
    - This involves conducting inspections and monitoring nuclear facilities.
  - Review Conferences:
    - The treaty mandates periodic Review Conferences, held every five years, to assess the NPT’s implementation, discuss disarmament progress, and address emerging proliferation challenges.

About Comprehensive Nuclear Test Ban Treaty (CTBT)

The Comprehensive Nuclear Test Ban Treaty (CTBT) is an international treaty aimed at banning all nuclear explosions for both civilian and military purposes.
Its primary goal is to contribute to global nuclear disarmament and non-proliferation by prohibiting nuclear testing, which is a significant step towards preventing the development and improvement of nuclear weapons.
Background:
- The negotiations for the CTBT began in 1994, led by the United Nations Conference on Disarmament.
- It was adopted by the United Nations General Assembly in 1996.
Entry into Force:
- For the CTBT to become legally binding, it requires ratification by 44 specific countries listed in Annex 2.
- These countries participated in the 1996 session of the Conference on Disarmament and had nuclear power or research reactors at that time.
Status of Key Countries:
- Notably, three key Annex 2 countries, India, Pakistan, and North Korea, have not signed or ratified the CTBT.
- The United States, China, Iran, Israel, and Egypt have signed but not ratified the treaty.
- Several countries, including the United Kingdom, France, and Russia, have ratified the CTBT.
Provisions and Objectives:
- Prohibition of Nuclear Explosions:
  - The central provision of the CTBT is the prohibition of all nuclear explosions, whether they are conducted for military or peaceful purposes.
  - This includes explosions in the atmosphere, underwater, and underground.
- Verification Regime: The CTBT establishes a comprehensive verification regime consisting of three main components:
  - International Monitoring System (IMS):
    - A network of over 300 monitoring facilities worldwide that detect and report seismic events, hydroacoustic signals (underwater sound waves), infrasound (ultra-low-frequency sound waves), and radionuclide particles (radioactive materials released during nuclear explosions).
  - International Data Centre:
    - Collects and analyzes data from the IMS network and provides it to member states.
  - On-Site Inspections:
    - Once the CTBT is in force, member states may request on-site inspections in case of suspicious events or allegations of non-compliance.
  - Preventing Nuclear Proliferation:
    - By prohibiting nuclear testing, the CTBT contributes to curbing the development and refinement of nuclear weapons.
    - It helps prevent the proliferation of these weapons by making it harder for countries to advance their nuclear capabilities.
  - Promoting Nuclear Disarmament:
    - The CTBT is viewed as an essential step towards global nuclear disarmament. It reduces the value of nuclear weapons, making them less usable and less attractive to possess.

Canada’s actions are in violation of Vienna Convention: EAM

(General Studies- Paper II)

Source : TH

External Affairs Minister S. Jaishankar expressed concerns about the safety and security of Indian diplomats in Canada, challenging the fundamental principles of the Vienna Convention on Diplomatic Relations.

These remarks followed Canada’s withdrawal of 41 diplomats from India and the suspension of walk-in services at its consulates in Mumbai, Bengaluru, and Chandigarh, impacting Canadian visa services for Indians.

Key Highlights

Challenges to Vienna Convention:
- Jaishankar emphasized that ensuring the safety and security of diplomats is the most fundamental aspect of the Vienna Convention, and the current situation in Canada raises significant concerns in this regard.
- Indian missions in Canada had previously stopped issuing visas, and India is open to resuming visa services if conditions for Indian diplomats improve in Canada.
India is currently reviewing the security situation that led to the suspension of visa services in Indian missions in Canada.
Canada’s Accusations:
- Ottawa’s Foreign Minister Melanie Joly accused India of violating the Vienna Convention, specifically citing a unilateral revocation of diplomatic privileges and immunities as contrary to international law.
- Canadian Prime Minister Justin Trudeau also accused India of violating basic diplomatic principles.
Pro-Khalistan Threats and ‘Certain Segment’ of Canadian Politics:
- Jaishankar revealed that India is closely monitoring the situation in Canada and referred to threats made by pro-Khalistan groups against Indian diplomats.
- He indirectly pointed out that the issue is with a “certain segment” of Canadian politics.
India’s Ministry of External Affairs emphasized that the primary issue was not the withdrawal or expulsion of diplomats but rather “parity” in diplomatic representation.
India accused Canadian diplomats stationed in India of “interfering” in domestic Indian affairs, a claim reiterated by Minister Jaishankar.

About the Vienna Convention

The Vienna Convention on Diplomatic Relations is an international treaty that governs the conduct of diplomatic relations between countries.
It was adopted in 1961 and entered into force in 1964.
Purpose:
- The primary purpose of the Convention is to provide a framework for the establishment and conduct of diplomatic relations between countries.
- It sets out the rights and obligations of diplomatic missions (embassies) and their personnel, as well as the host country.
Diplomatic Immunity:
- One of the most well-known aspects of the Convention is the principle of diplomatic immunity.
- This means that diplomats and their families are granted certain legal immunities and privileges to ensure they can perform their duties without fear of harassment, arrest, or prosecution by the host country.
- This includes immunity from civil and criminal jurisdiction, inviolability of diplomatic premises, and the right to communicate freely with their home country.
Respect for the Host Country:
- While diplomats enjoy privileges, the Convention also requires them to respect the laws and regulations of the host country.
- They must not interfere in the internal affairs of the host country.
Protection of Embassy Staff:
- The Convention also outlines the rights and protections of embassy staff, such as administrative and technical personnel.
- These individuals are not granted the same level of immunity as diplomats but are still provided certain protections.
Opening and Closing of Diplomatic Missions:
- The Convention sets rules for the opening, operation, and closing of diplomatic missions.
- This includes the procedure for accrediting diplomats and the conduct of consular services.

Tej turns into extremely severe cyclone

(General Studies- Paper I)

Source : TH

Cyclone Tej, which initially formed in the Arabian Sea, has intensified into an extremely severe cyclone and is currently moving northwest.

It is projected to make landfall near Al Ghaidah on the Yemen coast during the early hours of Tuesday as a very severe cyclonic storm with strong winds.

Key Highlights

Cyclone Tej is moving northwestward and is expected to hit the Yemen coast near Al Ghaidah on Tuesday.
It is forecasted to bring winds with speeds of 125-135 kmph, gusting up to 150 kmph.
Weather Alerts for Kerala:
- Kerala is likely to experience isolated heavy rainfall due to weather systems in the Arabian Sea and the Bay of Bengal.
- A yellow alert has been issued for eight districts spanning from Kollam to Palakkad, warning of isolated heavy rains on Monday.
- However, the typical northeast monsoon rains in the state will be disrupted for the next few days due to the prevailing weather conditions.

About Cyclone Classification

Cyclone intensity is typically measured using various scales, and classification is based on the cyclone’s maximum sustained wind speeds.
The two most commonly used scales for measuring cyclone intensity are the Saffir-Simpson Hurricane Wind Scale and the Beaufort Scale.
Saffir-Simpson Hurricane Wind Scale:
- The Saffir-Simpson Hurricane Wind Scale is primarily used to classify hurricanes and tropical cyclones in the Atlantic and Northeast Pacific Ocean basins.

Beaufort Scale:
- The Beaufort Scale, on the other hand, is a scale that measures wind speed based on observable effects at sea and on land.
- It is more broadly used to describe wind speeds and conditions, not specifically for cyclones.
- It categorizes wind speeds from 0 to 12.

Have earnings grown post-pandemic?

(General Studies- Paper II)

Source : TH

The Periodic Labor Force Survey (PLFS) for 2022-23 has shown a strengthening labor market in India with declining unemployment rates and rising labor force participation rates (LFPRs), particularly for rural women.

However, there are concerns regarding the nature of employment, with a significant portion of new jobs for women being in self-employment and unpaid family work, and a decline in regular wage work.
The impact of inflation on real earnings, which can affect the purchasing power of the workforce is also highlighted.

Key Highlights

Labor Market Trends:
- Rural women’s LFPRs have risen significantly from 19.7% in 2018-19 to 41.5% in 2022-23, indicating greater participation in the labor market.
- Much of the new employment for women has been in self-employment, with a rise in the proportion of women working as unpaid family helpers.
- The share of women in regular wage work has declined.
Impact of Inflation on Real Earnings:
- To understand the condition of the Indian labor market, it’s essential to examine real earnings.
- Real earnings are adjusted for inflation, which has been high in recent years.
- If inflation outpaces earnings growth, real earnings decrease, reducing purchasing power.
Analysis of Real Earnings (2019-2023):
- Between 2019 and 2023, only casual workers saw an increase in their average real monthly earnings, both for men and women, across urban and rural sectors.
- Women casual workers experienced a 13% increase in real earnings.
- Inflation eroded the gains of most workers, resulting in lower real earnings in 2023 compared to the pre-pandemic period.
- Differences exist between urban and rural sectors, with some urban male self-employed workers experiencing a reduction in real earnings, while rural male self-employed workers saw an increase.
- Regular wage workers in urban areas, especially women, saw reductions in real earnings in 2023 compared to 2019.
- Rural women in regular wage employment earned the highest gains in real earnings, with a 27.5% increase in the April-June 2023 quarter compared to April-June 2019.

Impact of Inflation on Different Cohorts:
- Rural women in self-employment, despite an increase in their share of employment, experienced a significant reduction in average monthly real gross earnings (7.72% decrease), which indicates a challenging economic environment for this group.
- Real incomes gradually rose in 2023 after a moderation of inflation, benefiting most cohorts.
- However, urban women casual workers did not see increased real earnings.
Real Earnings Gains by Cohort:
- Self-employed men enjoyed substantial gains in real earnings, with both rural and urban men experiencing increases (9.27% and 8.9%, respectively).
- Rural and urban self-employed women also saw real earnings gains (2.14% and 4.2%, respectively).
- Rural women in regular wage employment experienced the highest real earnings growth of 35.5% but represent a small portion of the rural female workforce.
- Real earnings gains were modest for urban men and women in regular wage employment (1.42% and 2.66%, respectively).

Concerns About Wage Share:
- While there have been increases in real earnings for several cohorts, there is a concern about the share of wages in the overall economic output.
- Only three cohorts experienced real earnings growth faster than the real GDP growth rate of around 7.2%: urban and rural male self-employed workers and rural women in regular wage employment (a small percentage of the workforce).
- Wage workers, in general, saw real earnings grow more slowly than economic output, indicating a possible reduction in the share of wages, despite overall economic growth.
K-Shaped Recovery Possibility:
- The data suggests the possibility of a K-shaped recovery in India, with variations in economic outcomes for different segments of the labor market.
- While some cohorts have seen improvements in real earnings, wage workers’ real earnings growth lags behind overall economic growth.

What is K-shaped recovery?

A K-shaped recovery is an economic scenario in which different segments of the economy recover at different rates or in different directions, leading to divergent outcomes for various groups or sectors.
In a K-shaped recovery, some parts of the economy may see rapid improvement and growth, while others may continue to decline or face prolonged economic challenges.
The term “K-shaped” is used to represent the shape of the diverging paths on a graph, where one arm of the “K” goes up, indicating growth or improvement, and the other arm goes down, indicating decline or stagnation.

To curb evasion, EU report calls for 2% global wealth tax on billionaires

(General Studies- Paper III)

Source : TH

The European Union Tax Observatory has released its ‘Global Tax Evasion Report 2024,’ highlighting the issue of tax evasion among billionaires.

The report calls for the implementation of a global minimum tax on billionaires, equivalent to 2% of their wealth, aiming to address tax evasion and generate significant revenue.

Key Highlights

Billionaire Tax Evasion:
- The report points out that billionaires are enjoying effective tax rates as low as 0% to 0.5% on their wealth, raising concerns about tax evasion.
- The proposed global minimum tax on billionaires at 2% is considered modest, given that billionaire wealth has grown at an average annual rate of 7% since 1995, adjusting for inflation.
Impact of Tax Evasion Measures:
- The report highlights the success of tax evasion to the following measure- ‘the automatic exchange of bank information’.
  - It has helped in reducing offshore tax evasion by a factor of three over the past decade.
- Previously, households held financial wealth equivalent to 10% of world GDP in tax havens, much of it undeclared to tax authorities.
- Today, while 10% of the world’s GDP still remains in offshore household financial wealth, only 25% of it evades taxation.
- The report credits this reduction in non-compliance to political will and successful measures.
Reasons for Ongoing Tax Evasion:
- Not all offshore financial institutions comply with the automatic exchange of bank information, fearing the loss of customers with no significant penalties for non-compliance.
- Wealthy individuals have started shifting their assets, especially to real estate, which is not covered under the automatic information exchange agreement.
Loopholes in Global Minimum Tax for MNCs:
- The global minimum tax rate of 15% on multinational corporations (MNCs), adopted by 140 countries and territories, has been disappointing.
- Loopholes have reduced expected revenues, and the report notes the “greenwashing” trend, where MNCs use ‘green’ tax credits for low-carbon initiatives to lower their tax rates below the minimum of 15%.
- S. green-energy tax credits are cited as an example.
Emerging Tax Competition Issues:
- The report identifies emerging forms of aggressive tax competition affecting government revenues.
- Preferential tax regimes targeting wealthy foreign individuals have grown from 5 to 28 in the EU and the U.K.
- These regimes offer tax exemptions or reductions to incoming residents while maintaining the standard income tax rates for domestic taxpayers.
- Such regimes weaken overall tax collection and have negative spillover effects on other countries.

Two experiments conducted by ISRO paved way for Gaganyaan test mission

(General Studies- Paper III)

Source : TH

The Indian Space Research Organisation (ISRO) achieved a significant milestone with the successful Test Vehicle Abort Mission (TV-D1).

It involved launching and safely recovering an uncrewed crew module as part of ISRO’s ‘Gaganyaan’ mission to send humans to orbit.
This mission had two important forerunners, showcasing India’s mastery of re-entry technology.

Key Highlights

Forerunner 1: Space Capsule Recovery Experiment (SRE-1):
- SRE-1 was an orbiting satellite successfully brought back to Earth in 2007, demonstrating ISRO’s ability to recover an orbiting satellite.
- The mission included complex descent maneuvers, braking systems, deceleration techniques, and parachute deployment, showcasing re-entry technology.
- SRE-1 marked India’s first step towards sending an Indian astronaut into space and safely bringing them back.
Forerunner 2: Crew Module Atmospheric Re-entry Experiment (CARE):
- In 2014, the Launch Vehicle Mark 3 (LVM-3) placed a 3.75-tonne uncrewed crew module in sub-orbital altitude and successfully brought it back.
- The module underwent re-entry, parachute deployment, and safely landed in the Bay of Bengal, marking India’s second step towards human spaceflight.
Highlights of TV-D1:
- TV-D1 included a standalone liquid booster rocket launching from Indian soil for the first time.
- The Crew Escape System successfully pulled the crew module away from the launch vehicle.
- The crew module reoriented itself before landing in the Bay of Bengal.
Significance:
- These forerunner missions and TV-D1 represent crucial steps in ISRO’s journey to send astronauts into space as part of the ‘Gaganyaan’ mission.