UPSC CURRENT AFFAIRS – 13 May 2024

InstaLinks : Insta Links help you think beyond the issue but relevant to the issue from UPSC prelims and Mains exam point of view. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background. This helps you study a topic holistically and add new dimensions to every current event to help you think analytically.

InstaLinks : Insta Links help you think beyond the issue but relevant to the issue from UPSC prelims and Mains exam point of view. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background. This helps you study a topic holistically and add new dimensions to every current event to help you think analytically.

Table of Contents:

GS Paper 3:

• Performance of the Indian Rupee against the US Dollar in the last 10 years

Facts for Prelims (FFP)

• Freshwater under the Ocean Bed

• Guidelines for confirming heatstroke and heat-related deaths

• Foot Rot Disease

• AlphaFold 3

• Oleander Flowers

• Orangutan Diplomacy

• Defence in News

Mapping

• Sundarbans mangrove ecosystem

Performance of the Indian Rupee against the US Dollar in the last 10 years

#### GS Paper 3

Syllabus: Indian Economy

Source: IE

Context: The rupee’s exchange rate has weakened against the US dollar in the last 10 years. But its “real” strength against a basket of global currencies has improved.

Before we analyse, 1st revise a few basic definitions:

Term | Definition

Exchange Rate | The rate at which one currency can be exchanged for another currency. It represents the value of one currency in terms of another currency. They are of three types:

Fixed Exchange Rate: Governments or central banks set the value of their currency in relation to other currencies and maintain that value by buying or selling their own currency.

Floating Exchange Rate: The value of a currency is determined by the forex market based on supply and demand. Most major currencies operate under this system.

Managed Float: A mix of fixed and floating exchange rates where governments intervene occasionally to stabilize their currency’s value.

Effective Exchange Rate | The weighted average of a currency’s exchange rates against other currencies, is adjusted for inflation and trade competitiveness.

Currency weights are derived from the share of individual countries in total foreign trade.

Nominal Effective Exchange Rate (NEER) | A simple average of bilateral exchange rates between the domestic currency and the currencies of major trading partners, weighted by respective trade shares.

NEER measures the overall strength or weakness of a currency relative to a basket of other currencies without adjusting for inflation.

Real Effective Exchange Rate (REER) | Adjusts NEER for differences in inflation rates between the domestic economy and its trading partners. Reflects changes in the relative price levels of goods and services.

Provides a more accurate measure of a currency’s trade competitiveness by accounting for changes in price levels.

Status of the Indian Rupee in the last 10 years:

• The rupee fell from Rs 44.37 to Rs 60.34 (26.5%) from 2004 to 2014 against the US dollar

• From 2014 to 2024, the rupee further depreciated from Rs 60.34 to Rs 83.38 (27.6%) against the US dollar.

• Between 2004 and 2024, the rupee declined by 32.2% (from 133.77 to 90.76) as per the 40-currency basket NEER

• Despite this, between 2004 and 2024, the rupee has undergone a smaller depreciation against the currencies of India’s major trading partners compared to its depreciation solely against the US dollar.

• The rupee’s trade-weighted REER for the 40-currency basket has increased in the last 20 years, indicating that the Rupee strengthened between 2004-05 and 2023-24.

Reasons for Indian Rupee to depreciate against US dollars:

• Trade Imbalance: Persistent trade deficits for India (as India imports more than the value of its exports) can put downward pressure on the rupee as more rupees are demanded to pay for imports compared to the dollars earned from exports.

• Capital Outflows: The rate of investment through FDI and FII has reduced in the last few years.

• Inflation Differentials: Higher inflation rates in India compared to the US can erode the purchasing power of the rupee, leading to depreciation against the dollar.

• Interest Rate Differentials: Lower interest rates in India relative to the US can reduce the attractiveness of Indian assets for foreign investors, resulting in capital outflows and rupee depreciation. Currently, the US interest rate is high.

Reasons for Indian Rupee to strengthen against the currencies of India’s major trading partners:

• Trade Surplus: India maintains a trade surplus with some of its major trading partners (including the USA. India has a trade surplus of over $24b with the US). It can lead to increased demand for the rupee, strengthening its value relative to those currencies.

• Positive Economic Outlook: Strong economic fundamentals and growth prospects in India compared to its trading partners can attract foreign investment, boosting demand for the rupee.

• Government Policies: Government policies aimed at stabilizing the currency and promoting economic growth can instil confidence in the rupee, leading to its appreciation against other currencies.

Implications of Currency Depreciation on the Indian Economy:

Positive Impacts:

• Boosts Exports: A cheaper rupee makes Indian exports more affordable for foreign buyers, potentially increasing demand and export earnings.

• Inward Remittances: A weaker rupee enables higher remittances from overseas workers, increasing disposable income in India.

Negative Impacts:

• Higher Import Costs: Imports become more expensive, leading to inflationary pressures and impacting purchasing power.

• Costlier Foreign Debt: Increased repayment burden on foreign debt due to the need for more rupees to settle debts.

• Discourages Foreign Investment: Depreciation signals economic instability, potentially dissuading foreign investors from investing in India.

Way Forward:

Enhancing Export Competitiveness, thereby Improving Indian Rupee Strength:

• Improved Infrastructure: Investments in transportation networks, ports, and customs clearance processes are crucial. Developing export promotion zones and specialized manufacturing zones is essential.

• Skill Development: Implementing skill development programs to enhance the availability of skilled labour in export-oriented industries.

• Technology Adoption: Incentivizing and promoting technology adoption, including automation, digitization, and Industry 4.0 technologies, to boost productivity, competitiveness, and innovation in the export sector.

• Internationalization of India Rupee

Insta Links:

• Internationalisation of rupee

Mains Links:

It is essential to approach the internationalisation of the rupee cautiously, considering the potential advantages and risks associated with it. Critically examine.

How would the recent phenomena of protectionism and currency manipulations in world trade affect the macroeconomic stability of India? (UPSC 2018)

Prelims lInk:

Q1. Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of the Indian rupee? (UPSC 2019)

(a) Curbing imports of non-essential goods and promoting exports

(b) Encouraging Indian borrowers to issue rupee-denominated Masala Bonds

(d) Following an expansionary monetary policy

Ans: (d)

Q2. Consider the following statements: (UPSC 2019)

• The effect of devaluation of a currency is that it necessarily

• improves the competitiveness of the domestic exports in the foreign markets

• increases the foreign value of domestic currency

• improves the trade balance

Which of the above statements is/are correct?

(a) 1 only (b) 1 and 2 (c) 3 only (d) 2 and 3

Ans: (a)

Freshwater under the Ocean Bed

#### Facts for Prelims (FFP)

Source: Th

Context: Freshwater exploration from under the ocean bed is gaining attention as a potential solution to depleting freshwater resources. Recent discoveries have revealed significant freshwater reservoirs under the ocean.

How freshwater are formed under the ocean bed?

• Subterranean Flow: Rainwater and surface water can seep into the ground and percolate deep into the Earth’s crust. Some of this water can accumulate in underground reservoirs or aquifers beneath the ocean floor.

• Geological Processes: Geological activities such as tectonic movements and volcanic eruptions can create fractures, faults, and cavities in the Earth’s crust. These geological features can trap freshwater, preventing it from mixing with seawater.

• Submarine Springs: Submarine springs are underwater vents that release freshwater into the ocean. These springs can occur where groundwater from aquifers beneath the ocean floor discharges through openings in the seafloor.

• Glacial Melting: During periods of glaciation, large ice sheets store vast amounts of freshwater. As glaciers melt, freshwater can be released into the ocean, forming layers of less dense water that float on the denser seawater below.

Freshwater reserves, like the river found at the bottom of the Black Sea, are crucial. With only 2.5% of Earth’s water being freshwater, these reserves are vital. Most freshwater is in ice or underground, including under the ocean.

International laws, like UNCLOS, govern ocean resources, defining rights and responsibilities. UNCLOS regulates resources like minerals, raising questions about freshwater classification. Exclusive Economic Zones (EEZs) grant states rights over marine resources, while the “Area” beyond EEZs is collectively governed. The 1958 Geneva Conventions also addressed ocean law but were less comprehensive.

Guidelines for confirming heatstroke and heat-related deaths

#### Facts for Prelims (FFP)

Source: TH

Context: The Union Health Ministry issued guidelines for confirming heatstroke and heat-related deaths, aiming to help hospitals identify such cases.

Heatstroke, a medical emergency, occurs due to overheating from high temperatures or physical exertion.

Symptoms include fatigue, dizziness, nausea, and increased heart rate.

Criteria for heatstroke include a body temperature of 40°C or higher, accompanied by delirium, seizures, or coma. Over 11,000 heatstroke deaths were recorded in India between 2012 and 2021. The government released a National Action Plan on Heat-Related Illness and the India Cooling Action Plan to address heat-related health challenges.

The current guidelines by the National Programme on Climate Change and Human Health (NPCCHH) and the National Centre for Disease Control (NCDC) aim to help hospitals identify heat-related deaths based on evidence. Autopsies are not mandatory but can help determine the cause of death.

Foot Rot Disease

#### Facts for Prelims (FFP)

Source: IE

Context: The Punjab Agricultural University (PAU) has developed a biocontrol agent, Trichoderma asperellum, to manage foot rot disease in Basmati rice crops.

About Foot Rot Disease: It is a fungal disease affecting Basmati rice crops, primarily at the seedling stage. Caused by Fusarium verticillioides, a soil-seed borne pathogen. Spreads through the plant root, leading to stem base colonization. Symptoms include pale yellowing, elongation, drying, and eventual death of seedlings. Current treatments involve chemical fungicides like Sprint 75 WS (carbendazim + mancozeb), harmful to soil and consumers.

Trichoderma asperellum: Biocontrol agent offering a non-chemical alternative, aiding disease management while minimizing environmental harm.

AlphaFold 3

#### Facts for Prelims (FFP)

Source: TH

Context: AlphaFold 3’s release has sparked excitement.

AlphaFold is an AI tool by Google’s DeepMind to predict protein folding since 2018. It aims to understand 3D protein shapes, crucial for biology and health. Versions like AlphaFold 3 offer about 80% accuracy and model DNA, RNA, and more. Protein folding is vital for biological function and disease understanding. While AlphaFold aids drug development, its limitations include a lack of explanation for protein folding and restricted access.

#### Facts for Prelims (FFP)

Source: TOI

Context: New COVID variants, collectively known as FLiRT, have emerged in India.

The FLiRT variants (KP.2 and KP1.1) are descendants of the Omicron JN.1 variant. They are characterized by increased transmissibility and the ability to potentially evade immunity from vaccines and previous infections. These variants spread through respiratory droplets and contact with contaminated surfaces.

While KP.2 is more infectious than its predecessor, JN.1, it has shown lower overall infectivity. Symptoms are similar to the JN.1 variant, including sore throat, runny nose, coughing, and fever. Safety measures such as wearing masks, practising hand hygiene, and maintaining physical distancing remain crucial to prevent the spread of these variants and mitigate the impact of the pandemic.

Oleander Flowers

#### Facts for Prelims (FFP)

Source: HT

Context: Kerala temples ban oleander flower offerings following a woman’s suspected poisoning death from consuming oleander leaves.

Oleander is a poisonous plant known scientifically as Nerium oleander. It contains toxic compounds throughout its parts, including leaves and flowers. Ingestion of oleander can lead to symptoms such as vomiting, nausea, bloody diarrhoea, and irregular heart rhythm.

They are fast-growing evergreen shrubs or small trees native to Europe and Asia. In Kerala, they are also called arali and kanaveeram. Oleander is tolerant to heat, drought, wind, air pollution, salt, and poor soil.

Orangutan Diplomacy

#### Facts for Prelims (FFP)

Source: IE

Context: Malaysia’s “orangutan diplomacy” aims to use the endangered species as diplomatic gifts to trade partners who buy the country’s palm oil, hoping to improve its image amid accusations of unsustainability.

Inspired by China’s successful “panda diplomacy,” Malaysia sees orangutans as a way to signal commitment to certain values.

Orangutans, the only great apes found outside of Africa, inhabit Sumatra and Borneo in Southeast Asia. They prefer tropical forests, particularly in river valleys and floodplains. With an extremely low reproductive rate, their populations are highly vulnerable. All three species are classified as Critically Endangered on the IUCN Red List.

Defence in News

#### Facts for Prelims (FFP)

Items | Description

Hermes-900 | The Indian Army and Navy are set to receive Hermes-900 drones, also known as Drishti-10, to enhance their surveillance capabilities.

The Hermes-900 is a next-generation, Medium Altitude Long Endurance (MALE) unmanned aerial system. It boasts over-the-horizon, persistent multi-mission capabilities and has a payload carrying capacity of 350 kgs, making it suitable for various tasks including area dominance, intelligence gathering, and ground support.

Glide Phase Interceptor (GPI) Project | The Glide Phase Interceptor (GPI) Project is a collaborative effort between Japan and the U.S. aimed at developing a hypersonic missile-intercepting system.

A hypersonic weapon travels at speeds between 5 and 25 times the speed of sound. Below these speeds, weapons are considered subsonic or supersonic. Above these speeds, the atmosphere molecules disassociate into a plasma, complicating control and communication.

Hypersonic missiles enter the glide phase after separating from boosters at the peak of their trajectory. During this phase, they use gravity to accelerate towards Earth and perform a pitch manoeuvre to enter a flatter trajectory towards their target.

Sundarbans mangrove ecosystem

#### Mapping

Source: TOI

Context: Air pollution from Kolkata and the Indo-Gangetic Plain threatens the Sundarbans mangrove ecosystem, revealed a recent study.

Pollutants, including black carbon and heavy metals, degrade air quality, harming mangroves. Antiquated boat motors are a major source of toxic metals. The acidic components of pollutants lead to oxidative stress, endangering mangrove cells.

What is oxidative stress?

Oxidative stress refers to the condition where pollutants, such as heavy metals and acidic components in the air, lead to excess production of reactive oxygenated species (ROS) in the mangrove ecosystem. This overproduction of ROS can overwhelm the natural antioxidant defences of the mangrove cells, leading to cellular damage and threatening the overall health and resilience of the ecosystem.

About Sundarbans:

Sundarbans is a mangrove area in the delta formed by the confluence of the Ganges, Brahmaputra and Meghna Rivers in the Bay of Bengal.

Features:

• Sundarban in India is its largest mangrove ecosystem.

• Sundarban Reserve Forest of Bangladesh is the largest mangrove forest in the world.

• It contains Sundarbans Tiger Reserve, Sundarban Wetland, Sundarbans National Park and Biosphere Reserve.