Sept 20th 2024 Current Affairs

Index:

1. White Revolution 2.0

Introduction:

White Revolution 2.0 aims to enhance dairy production and improve the economic status of women through cooperative models, launched by Amit Shah, Union Minister of Home and Cooperation.

Key Aspects of White Revolution 2.0:

1. Empowerment of Women:

o The scheme includes women in milk procurement operations, providing them formal employment.

o Income will be deposited directly into their bank accounts, ensuring financial independence.

2. Fight Against Malnutrition:

o By increasing milk production and procurement, White Revolution 2.0 addresses malnutrition through improved dairy accessibility.

3. Increasing Milk Procurement:

o Target to increase procurement from 660 lakh litres/day to 1000 lakh litres/day by cooperatives.

4. PACs and Cooperative Expansion:

o Proposal for two lakh Primary Agriculture Cooperative Societies (PACS), dairy, and fishery cooperatives across India.

o Every Panchayat to have at least one PACS or cooperative society after registration.

5. Strengthening Cooperative Institutions:

o New PACs and cooperative bodies will strengthen institutions at tehsil and district levels.

o Aim to ensure that state institutions gain strength and momentum.

6. Historical Context:

o Emphasis on how cooperative changes in the past 70 years were inadequate, leading to the inefficiency of such bodies.

o This new push aims to rejuvenate cooperatives and make them more effective.

7. Joint Proposal for Nationwide Implementation:

o The government has prepared a joint proposal to be accepted and implemented by all states, focusing on cooperative growth and rural development.

2. National Centre of Excellence for AVGC-XR

Introduction:

The Union Minister of Information and Broadcasting, Ashwini Vaishnaw, announced the establishment of a National Centre of Excellence (NCoE) for Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR).
The initiative aims to create 5 lakh jobs in the AVGC sector.

Key Highlights of the AVGC-XR Centre:

Job Creation and Employment:
- The NCoE has the potential to create about 5 lakh jobs.
- This sector is seen as a driver for large-scale employment and innovation, particularly for young professionals.

India’s AVGC Industry:
- Explosive growth is expected in the Animation, Visual Effects, Gaming, and Comics (AVGC) sector in India.
- It provides vast opportunities for employment and innovation.
- Films like RRR, Baahubali, The Lion King, and Avatar showcase the potential of immersive technologies in animation and visual effects.

Immersive Technologies:
- Immersive technologies, including Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR), and 3D modeling & animation, are central to the AVGC sector.
- These technologies create lifelike and interactive experiences for users, paving the way for innovations in entertainment, education, gaming, and more.

Scope for Various Professions:
- Opportunities abound for 3D animators, VR/AR creators, game developers, and comic artists in this sector.

The NCoE will serve as a gateway for individuals looking to master immersive technologies and hone their skills.

3. FATF Recommendations on India's Court System and PMLA

Introduction: The Financial Action Task Force (FATF), in its mutual assessment of India, recommended increasing the capacity of India’s court system and addressing the backlog of pending trials, particularly in cases related to money laundering and terror financing.

Key Recommendations from FATF:

1. Court System Capacity

o The FATF observed that pending trials in money laundering cases need to be reduced.

o The capacity of the Enforcement Directorate (ED) and the court system should be enhanced to expedite the prosecution of these cases.

2. Delays in Terror Financing Cases

o There have been delays in prosecuting terror financing cases, which must be addressed for India to maintain its global financial compliance standards.

o Terror financing threats in India are linked to groups like IS (Islamic State) and al Qaeda, which further heightens the need for speedy prosecution.

3. PMLA and Legal Challenges

o A constitutional challenge to provisions of the Prevention of Money Laundering Act (PMLA) resulted in delays, with 121 petitions filed since 2018.

o The matter was resolved in July 2022 by the Supreme Court (Vijay Madanlal Choudhary vs. Union of India), allowing prosecution to move forward.

4. Statistics on ED Investigations

o Between the check period, 4,163 investigations were initiated.

o 864 prosecution complaints were filed, and 28 convictions were secured by the ED, although many trials were delayed.

o The ED faced only one acquittal during the period.

5. Saturation of the System

o The limited number of specialised prosecutors in ED and special court judges contributed to the saturation of the judicial system, making it difficult to prosecute cases efficiently.

6. Conviction Rate and Prosecution

o Despite a 97% conviction rate, the low number of prosecutions can be attributed to judicial delays and challenges to the PMLA provisions, which affected the speed of trials.

7. Terror Financing Threats

o India faces terror financing risks associated with global terrorist organisations, highlighting the importance of improving legal capacity to combat these threats effectively.

4. Supreme Court Dismisses Curative Petitions on AGR Dues

Introduction:

The Supreme Court (SC) dismissed curative petitions filed by major telecom companies like Bharti Airtel and Vodafone Idea regarding Adjusted Gross Revenue (AGR) dues.
The petitions were against the court’s 2019 judgment that upheld the Department of Telecom’s (DoT) demand to recover AGR dues amounting to around ₹92,000 crore.

Background of AGR Issue:

What is AGR?

o Adjusted Gross Revenue (AGR) is the usage and licensing fee charged by the Department of Telecommunications (DoT) from telecom operators.

o Telecom companies are required to share a percentage of their AGR with the government as part of their licensing agreement, which includes spectrum usage and licensing fees.

The Dispute:
- The dispute between telecom operators and the government involved the calculation of AGR. Telecom operators argued that the revenue to be shared should only include core telecom services, whereas the government included non-core revenues as well.
2019 Supreme Court Verdict:
- In October 2019, the Supreme Court ruled in favor of the government’s definition of AGR, which included non-core revenues such as rent, profit on the sale of assets, and dividend.
- This verdict required telecom operators to pay their long-pending dues, amounting to ₹92,000 crore.

Curative Petitions:

Telecom companies, including Airtel and Vodafone Idea, filed curative petitions challenging the 2019 verdict, seeking relief on the grounds of financial stress caused by the payment burden.
The curative petitions were dismissed by a bench of Chief Justice D.Y. Chandrachud and Justices Sanjiv Khanna and B.R. Gavai on August 30, 2023, stating that no valid case was made out.

Key Takeaways from SC Judgment:

Dismissal of Curative Pleas: The Supreme Court reaffirmed its previous judgment by dismissing the petitions, noting that the telecom sector had benefited for years from the Centre’s liberalised payment regime.
- Revenue Sharing Regime: Under the revenue-sharing regime, telecom operators paid licensing fees and spectrum usage charges to the DoT, which was calculated as a percentage of their AGR.

Impact on Telecom Sector: The AGR verdict has placed significant financial stress on the telecom sector, particularly on companies like Vodafone Idea and Airtel, which face high dues.

5. The Escalation in West Asia

CONTEXT: West Asia is experiencing heightened tensions after coordinated attacks across Lebanon and parts of Syria, resulting in several casualties. These attacks, involving Hezbollah leaders, mark a new phase of conflict between Israel and its regional adversaries, notably Iran.

Context of Gaza War:

The escalation follows the October 7 attack by the Palestinian militant group Hamas on Israel, which killed over 1,200 Israelis.
In retaliation, Israel launched airstrikes, killing over 41,000 Palestinians and causing significant damage in Gaza.
Hezbollah has engaged Israel through rocket attacks from northern Lebanon, leading to escalating tensions and increased Israeli military response.

Hezbollah’s Involvement:

Hezbollah, the Iranian-backed Lebanese militant group, accused Israel of carrying out attacks in Syria and Lebanon.
Hezbollah leader Hassan Nasrallah described the attacks as an act of war, leading to fears of a broader regional conflict.

Pivot to the North:

Israel is shifting focus to the northern front, particularly Hezbollah, viewing it as the bigger threat.
Recent Israeli strikes have targeted Hezbollah bases in Lebanon and Syria.
The Israeli Defence Minister Yoav Gallant declared that Israel would use military force against Hezbollah to protect its northern communities.

Signals of Escalation:

The discovery of explosive devices in Lebanon and Hezbollah’s continued rocket attacks indicate a severe escalation.
Israel has been conducting aerial strikes, destroying Hezbollah’s weapons depots and tunnels.

Regional and Global Implications:

The conflict could potentially involve Iran, as it has backed both Hezbollah and Hamas.
Iran may retaliate, either directly or through its regional proxies, further destabilizing the region.
There is also potential for the involvement of third-party countries or global powers, especially if the conflict escalates into a broader war.

View from India:

India has managed to maintain good relations with both Israel and Palestinian groups.
India’s balanced approach allows it to engage diplomatically with various factions in the region.

Fallout of the Conflict:

The escalation has the potential to destabilize the region further, affecting oil prices, global trade routes, and increasing humanitarian crises.

Israel is conducting continuous operations to secure its borders, while Lebanon faces severe damage and losses.

6. Impact of US Federal Reserve Interest Rate Cut on India

CONTEXT:

The US Federal Reserve (Fed) announced a cut in the benchmark interest rate, known as the Federal Funds Rate, by 50 basis points (half a percentage point).
Interest rate cuts by the Fed are important globally as they affect both the US economy and international markets, including India.

Why Did the Fed Cut Interest Rates?

Economic Disruption and Recession Concerns:
- The Fed cut rates to counter economic slowdown and recessionary pressures, triggered initially by the COVID-19 pandemic and later exacerbated by Russia’s war with Ukraine.
- Interest rates were at near zero during the pandemic but were later increased to combat inflation.
- The Fed’s decision indicates a shift from focusing on controlling inflation to ensuring economic growth and employment.

Inflation and Employment Goals:
- Initially, the Fed’s primary concern was inflation, which it tried to manage through higher interest rates. However, moderating inflation and growing concerns about job creation prompted the Fed to adjust its policy.
- According to the Summary of Economic Projections (SEP), the Fed plans further cuts to achieve a “soft landing”—controlling inflation without triggering a recession.

Future Projections:
- The Fed may further cut rates by 50 basis points by the end of 2024, with another 100 basis points in 2025 and 50 basis points in 2026.
- The goal is to reduce inflation while boosting economic activity and employment.

How Will India Be Affected?

Capital Flows:
- India, being a capital-scarce country, depends on foreign investments to drive growth.
- Lower interest rates in the US could lead to outflows of capital from the US to emerging markets like India, as investors seek higher returns elsewhere.
- This could boost investor confidence in Indian markets, both in stocks and debt instruments.

Exchange Rate Impact:
- A cut in US interest rates may result in a weaker US dollar, which could lead to a stronger Indian rupee. A stronger rupee could have mixed effects:
  - Positive impact on India’s importers as imports would become cheaper.
  - Negative impact on exporters, who would face higher costs in global markets.

Foreign Direct Investment (FDI):
- FDI inflows to India could increase as borrowing costs in the US become cheaper, making it attractive for investors to invest abroad, including in Indian markets.

India’s Economic Policy:
- The Reserve Bank of India (RBI) may also consider the impact of the Fed’s decision while adjusting its own monetary policy.
- While India’s growth projections and inflation targets remain key concerns, the Fed’s rate cut could lead to greater economic stability if capital inflows increase.

US Trade Policy:

If the US implements tariffs or other restrictive trade policies (as hinted by political candidates), it could negatively affect global trade, including India’s exports, despite favourable exchange rate changes.

7. Harappan Civilization

CONTEXT:

100 Years of Discovery (1924-2024): The discovery of the Harappan Civilization was first announced by the Archaeological Survey of India (ASI) in 1924, with excavations at Harappa in present-day Pakistan.
This Bronze Age civilization is also known as the Indus Valley Civilization (IVC), noted for its advanced urban planning and technological achievements.

Key Discoveries and Sites:

Harappa and Mohenjo-Daro: These two primary sites of the Harappan Civilization were instrumental in understanding its scale and structure.
- Harappa: Discovered in 1920, with Daya Ram Sahni credited for excavations.
- Mohenjo-Daro: Excavated by D. Banerji, revealing similarities to Harappa.
- These sites revealed urban features such as town planning, drainage systems, granaries, and dockyards.
Other Important Sites:
- Ganweriwala (Pakistan), Rakhigarhi (India), and Dholavira (Gujarat, India) are other notable sites.
- These sites demonstrate the widespread nature of Harappan culture across the Indus and Saraswati river basins.

Chronological Phases of the Civilization:

Technological and Cultural Aspects:

Urban Planning: The Harappan cities were marked by their grid-like layouts, well-planned drainage systems, and use of baked bricks.
Artifacts: The civilization produced a variety of artifacts such as terracotta figurines, lapidary art, bronze and copper tools, and pottery.
Seals and Script: The Harappan people used seals with inscriptions in a yet undeciphered script, believed to be linked to trade and governance.

Unsolved Mysteries:

Despite a century of exploration, several aspects of the Harappan Civilization remain an enigma:
- Undeciphered Script: The Harappan script remains undeciphered, and scholars continue to debate its meaning and purpose.
- Decline: The reasons for the decline of the civilization are still debated, with theories suggesting climate change, river drying, or Aryan invasion.

Recent Discoveries and Theories:

Filling the Gaps:
- Vasant Shinde, who has excavated several Harappan sites in India, noted the importance of focusing on less-explored regional aspects of the civilization.
- New Archaeological Evidence from Dholavira (India) and Rakhigarhi sheds light on the socio-political structure of the civilization.

Migration and Settlement Patterns:
- Recent studies suggest that the Harappans may have migrated due to environmental changes such as the drying up of the Saraswati River.

Influence on Later Cultures:

The Harappan Civilization influenced later Vedic cultures and trade networks in West Asia, with evidence of Indus seals found in Mesopotamia.

8. News in brief

World Food India 2024 brings together nations from across the globe, offering a unique platform for industry leaders, academics, and researchers to collaborate, learn, and explore networking opportunities.This four-day event promises to be a landmark occasion, highlighting India’s emerging role as a global powerhouse in food processing.