Daily Current Affairs UPSC 31 May 2024

Nifty EV & New Age Automotive Index

• The National Stock Exchange of India has introduced the Nifty EV & New Age Automotive Index, the first of its kind in India.
• The index is designed to monitor the performance of companies involved in the electric vehicle ecosystem or the development of new age automotive vehicles and related technology.
• The base date for the index is April 2, 2018, with a base value of 1000.
• Companies that are part of the Nifty 500 are eligible to be included in the index.
• The index will be reconstituted twice a year and rebalanced quarterly to ensure accuracy and relevance.

Foreign Direct Investment (FDI)

Overview of Foreign Direct Investment (FDI) in India

• Gross FDI decreased slightly to USD 71 billion in 2023-24 from USD 71.4 billion in 2022-23.
• Net FDI flows dropped to US$ 10.6 billion in 2023-24 from US$ 28.0 billion in 2022-23.
• Singapore is the top source of FDI for India, followed by Mauritius and the USA.
• The manufacturing sector receives the highest FDI inflows, followed by Electricity and Computer Services.

Overview of FDI:

• FDI refers to investment in Indian companies by individuals residing outside India.
• This can involve investing in an unlisted Indian company or acquiring 10% or more of the post-issue paid-up equity capital of a listed Indian company.

Rhinoceros

Climate Change Threatening Rhinos with Extinction

• Study shows climate change poses a threat to Rhinos.
• Vulnerable to increased heating due to lack of surface area to dissipate heat.
• Rhinos cannot sweat as they lack sweat glands.

About Rhinos

• There are 5 species of Rhinos: Sumatran, Javan, Black, Greater one-horned, White
• Rhinos are considered 'keystone species'
• They are mega-herbivores that shape ecosystems by geo-forming and spreading nutrients and seeds

KAZA Summit

• The inaugural edition of the Kavango-Zambezi (KAZA) Trans-Frontier Conservation Area (TFCA) Summit is currently taking place in Zambia.

About KAZA TFCA

• KAZA TFCA was formally established in 2011 and encompasses the Kavango and Zambezi river basins where Angola, Botswana, Namibia, Zambia, and Zimbabwe converge.
• The region includes the Okavango Delta, which is the world's largest inland delta, and the Victoria Falls, a World Heritage Site and one of the seven natural wonders of the world.

Skill India Digital Hub (SIDH)

NSDC and ILO partnership for skill development in India. NSDC and ILO have partnered to advance skill development and lifelong learning in India.

• Implementation of Skill India Digital Hub (SIDH) is a key aspect of the partnership.

About SIDH

• SIDH is a unified digital platform developed by the Ministry of Skill Development and Entrepreneurship.
• It aims to skill, reskill, and upskill Indian individuals through an online training platform.
• SIDH has a three-layered framework:

1. 1. Trust Layer: Enables verifiable digital skill credentials.
   2. Finance/Payment Layer: Enables payment services like direct beneficiary transfer, rewards, scholarships, etc.
   3. Discovery Layer: Facilitates commerce and enables innovation and entrepreneurship.

Exercise Red Flag 2024

• Indian Air Force participated in the Red Flag Exercise in Alaska, USA
• Red Flag Exercise is a multi-national air combat exercise that simulates realistic combat scenarios
• There are two locations for the Red Flag Exercise in the USA: Nellis Air Force Base in Nevada and Eielson Air Force Base in Alaska
• The Nevada exercise is organized by the US Air Force Warfare Center, while the Alaska exercise is managed by Pacific Air Forces, the air component command of US Indo-Pacific Command.

Diadromous Fish

Marine Protected Areas and Diadromous Fish Habitats. Marine Protected Areas were not effectively protecting the core habitats of Diadromous fish species.

Diadromous Fish

• These species migrate between saltwater and freshwater environments.
• Examples include the Bull Shark.
• They play a crucial role in transporting energy and nutrients between freshwater and ocean environments.
• Anadromous fish live in saltwater but breed in freshwater, like the Chinook salmon.
• Catadromous fish live in freshwater but breed in saltwater, such as the North American eel.
• Threats to these species include habitat destruction and barriers to migration like dams.

Bela Block Printing

• Traditional craft Bela Block printing is at risk of disappearing due to lack of interest from younger generations.

About Bela Block Printing:

• Bela Block Printing is a traditional textile art form that features bold and intricate designs on textured fabrics.
• This craft is renowned for its vibrant color combinations and graphic patterns.
• The region of Kachchh in Gujarat is a major hub for producing Bela-style cloth.
• The Khatri community is well-known for their expertise in practicing this craft.

Moldova (Capital: Chișinău)

U.S. provides $135 million in aid to Moldova to combat Russian influence

1. Political features of Moldova.

• Located in the north-eastern corner of the Balkan region of Europe.
• Borders Ukraine to the north, east, and south, and Romania to the west.

2. Geographical features of Moldova.

• Highest point is Mount Bălănești.
• Major rivers include the Dniester and Prut.
• Climate characterized by moderate winters and warm summers.
• Natural resources include lignite, phosphorites, gypsum, limestone, etc.

"WHO Report: Tobacco Industry Targeting Youth"

Joint Report by WHO and STOP for World No Tobacco Day 2024.

• The report was released by the World Health Organization (WHO) and STOP, a global tobacco industry watchdog, to commemorate World No Tobacco Day on May 31st.
• The theme for World No Tobacco Day 2024 is "Protecting children from tobacco industry interference."

Key Findings on Youth Tobacco Use

• Globally, an estimated 37 million children aged 13–15 years use tobacco.
• 85% of 15–30-year-olds were exposed to electronic-cigarette advertising across multiple media platforms.
• Electronic-cigarettes are battery-operated devices that produce aerosol by heating a solution containing nicotine, an addictive substance found in combustible cigarettes.

Reasons for Tobacco Industry Targeting Youth

• The tobacco industry targets youth to find replacement consumers and generate a lifetime of profits.
• Lack of understanding regarding the repercussions of smoking and peer influence make youth easily addicted to tobacco consumption.

Tactics Used by Tobacco Industry to Target Youth

• The tobacco industry releases new products like e-cigarettes, heated tobacco products, nicotine pouches, etc.
• They lower prices of disposable e-cigarettes and engage in "buy one, get one free" promotions.
• Marketing in digital spaces, including gaming platforms, is used to target youth.

Impact of Tobacco Consumption

• Tobacco consumption kills more than 8 million people each year due to the risk of heart disease, lung disorders, cancer, etc.
• According to WHO, smoking costs the world's economies more than US$ 1 trillion annually in healthcare expenditure and lost productivity.

Initiatives to Reduce Tobacco Consumption

India:

• National Tobacco Control Programme: A government program aimed at reducing tobacco use through various interventions and awareness campaigns.
• Cigarette and Other Tobacco Products Act 2003: Legislation that regulates the production, sale, and distribution of tobacco products in India.
• Prohibition of Electronic Cigarettes Act, 2019: A law that bans the production, import, sale, and distribution of electronic cigarettes in India.

Global:

• WHO Framework Convention on Tobacco Control, 2003: An international treaty that aims to reduce tobacco consumption and exposure to tobacco smoke worldwide.
• WHO’s MPOWER measures: A set of evidence-based tobacco control measures recommended by the World Health Organization to help countries reduce tobacco use.
• Monitor and enforce tobacco use and prevention policies.
• Implement measures to protect individuals from exposure to tobacco smoke.
• Provide support and resources for individuals looking to quit tobacco use.
• Educate the public about the health risks associated with tobacco use.
• Enforce restrictions on tobacco advertising, promotion, and sponsorship.
• Increase taxes on tobacco products to discourage consumption.

"IIT Madras Startup Launches World's First Rocket with 3D-Printed Engine"

• The Rocket Agnibaan SOrTeD is India's first semi-cryogenic engine-powered rocket launch flight.
• Designed and manufactured through 3-D Printing or additive manufacturing.
• Test flight aims to demonstrate in-house technologies and gather crucial flight data for Agnikul's orbital launch vehicle, the 'Agnibaan'.

About Agnibaan Rocket:

• Two-stage rocket with a capacity to carry payloads ranging from 30kg to 300 kg to a height of 700 km.
• Can access low-and high-inclination orbits and is completely mobile.
• Launched from India's first privately developed launchpad called 'Dhanush' at Sriharikota in Andhra Pradesh.
• Semi-Cryogenic Engine (SCE) utilizes a propellant combination of Liquid Oxygen (LOX) and Kerosene.
• SCE uses a fuel that is storable at higher temperatures compared to cryogenic engines, making handling and storage simpler while offering high performance.

Comparison with Cryogenic Engines:

• Cryogenic engines use liquid hydrogen as fuel and liquid oxygen as oxidizer at extremely low temperatures.
• ISRO is developing semi-cryogenic propulsion systems for enhancing payload capability of Launch Vehicle Mark-3 and future launch vehicles.

Other Initiatives taken for Privatising Space Sector

1. 100% FDI allowed in space sector components and systems.

• Foreign direct investment is permitted in components and systems/sub-systems for satellites, ground segment, and user segment in the space sector.

2. Private sector considered critical in space economy.

• India's space policy for 2023 recognizes the private sector as a crucial stakeholder in the entire value chain of the space economy.

3. IN-SPACe facilitates private sector engagement.

• The Indian National Space Promotion and Authorization Centre (IN-SPACe) works to facilitate private sector involvement in space activities.

"UN-GSCF Urges Resilience in Face of Trade Disruptions"

• The first UN-GSCF was organized by UN Trade and Development and the Government of Barbados to tackle increasing disruptions in global supply chains.
• Supply chain resilience refers to a supply chain network's capacity to endure disruptions and reduce the impact on finances, expenses, and clients.

Issues affecting global supply chains

• Climate change: Droughts impacting trade flow in the Panama Canal.
• Geopolitical tensions: Attacks on ships in the Red Sea and disruptions in the Black Sea.
• Interdependencies and disruptions: Vulnerability to natural disasters, pandemics, etc.

Key outcomes of the UN-GSCF

• Manifesto for intermodal, low-carbon, efficient, and resilient freight transport and logistics.
• Digital solutions for resilience: Guidelines for developing electronic single window for trade.
• UNCTAD Trade-and-Transport Dataset: Developed with World Bank for better understanding and optimizing global trade flows.

Initiatives to Enhance Supply Chain Resilience in India

Global Initiatives:

• Supply Chain Resilience Initiative: In 2021, Australia, India, and Japan launched this initiative to strengthen supply chains.
• Indo-Pacific Economic Framework for Prosperity (IPEF): India is a signatory to Pillar-II of IPEF, which focuses on enhancing supply chain resilience.

Domestic Initiatives:

• Logistics Ecosystem: The PM Gati Shakti National Master Plan and the National Logistics Policy (2022) are aimed at improving the logistics infrastructure in India.
• Boost to Manufacturing: The Atmanirbhar Bharat initiative, introduction of PLI schemes in key sectors, and a liberalized FDI policy are measures taken to boost manufacturing in India.

"S&P Upgrades India's Sovereign Rating Outlook"

1. Standard & Poor's Global revises India's credit outlook to positive. Retains sovereign credit rating of 'BBB-' for long-term and 'A-3' for short-term unsolicited foreign and local currency.

• Reasons for revision include robust economic expansion, continuity in economic reforms, fiscal policies, fiscal consolidation efforts, and improved quality of government expenditure.

2. Sovereign Credit Rating (SCR).

• Assessment of a country's ability to meet debt obligations.
• Dominated by US-based rating agencies like S&P, Moody's, and Fitch.

3. Significance of SCR.

• Borrowing cost: Higher ratings mean lower risk and lower interest rates.
• Access to capital markets: Easier access to international markets.
• Policy implications: Governments implement prudent policies to improve ratings.

4. Issues with SCRs.

• Lack of transparency in rating agency methodologies.
• Failure to capture economy's fundamentals.
• Allegations of bias against emerging economies.

Regulation of Credit Rating Agencies in India

• SEBI is the primary regulator of Credit Rating Agencies (CRAs) in India.
• Other regulatory agencies such as RBI, IRDA, and PFRDA also regulate certain aspects of CRAs within their sectoral jurisdiction.
• SEBI (Credit Rating Agencies) Regulations, 1999 mandate that CRAs disclose their rating criteria, methodology, default recognition policy, and guidelines on managing conflict of interest.
• Domestic CRAs registered under SEBI include CRISIL, ICRA, among others.

RBI Introduces SRO-FT Framework for FinTech Sector

• FinTech companies offer technological solutions for delivering financial products to consumers and ensuring regulatory compliance with traditional financial institutions.
• These companies have revolutionized financial services by improving efficiency, accessibility, and reducing costs.
• Despite their benefits, FinTech companies have raised concerns about customer protection and data privacy.
• In response to these concerns, the RBI has introduced the SRO-FT framework.
• SRO is responsible for setting and enforcing regulatory standards, promoting ethical conduct, and ensuring market integrity among its members.

Key Highlights of SRO-FT Framework

• SRO-FT will be structured to utilize the collective expertise of its members.
• SRO-FT must be independent and free from influence.
• SRO-FT cannot establish entities or offices overseas without RBI approval.
• SRO-FT must have systems in place to manage instances of 'user harm' such as fraud or unauthorized transactions.
• SRO-FT must be registered in India, but can have FinTech companies from outside India as members.

Need of Self-Regulatory Organizations for Financial Technology (SRO-FT)

• Ensuring compliance with industry standards and best practices.
• Empowering Financial Technology companies to operate responsibly even without formal regulation.
• Facilitating collaboration to identify and address challenges, promoting innovation.
• Adapting to rapid technological advancements and changing market dynamics.
• Promoting self-discipline and high levels of internal governance among Financial Technology companies.

"Revolutionizing Recombinant Protein Production"

• Modified proteins created through recombinant DNA (rDNA).
• Used to increase protein production, modify gene sequences, and create commercial products.
• rDNA is artificial DNA made by combining multiple DNA molecules.
• rDNA technology can splice or transfer DNA between species to create new genes.

Production of Recombinant Proteins

• RPs like vaccine antigens, insulin, and monoclonal antibodies are mass-produced in bioreactors.
• Yeast Pichia pastoris (Komagataella phaffii) is commonly used for RP production.
• Researchers have developed a safer process using mono-sodium glutamate (MSG) instead of methanol.
• Escherichia coli (E.Coli) is also used for RP production due to its genetics, growth rate, and high yield.

Applications of Recombinant Proteins

• Biotherapeutics like insulin, growth hormones, and monoclonal antibodies.
• Vector vaccines that are safer as they do not contain live pathogens.
• Agricultural use in genetically modified crops and improving animal feed.
• Environmental use in bioremediation to break down pollutants using microorganisms.