UPSC CURRENT AFFAIRS – 15 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 2:

• India set to transition to Living Wages approach

Facts for Prelims (FFP)

• UNESCO’s Memory of the World Asia-Pacific Regional Register

• Chabahar port

• China – India’s largest trading partner

• India International Bullion Exchange (IIBX)

• High Energy Photon Source (HEPS)

• Nancy Grace Roman Telescope

• First human recipient of pig kidney transplant dies

• Concentration of Carbon Dioxide (Keeling Curve)

Mapping

• Venezuela

India set to transition to Living Wages approach

#### GS Paper 2

Syllabus: Indian Constitution

Source: LM

Context: India’s decision to transition from minimum wage to a scientifically determined living wage by 2025, with support from the International Labour Organisation (ILO), is commendable.

Types of Wages:

Type of Wage | Definition

Minimum Wage | The minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, cannot be reduced by collective agreement or an individual contract. It includes basic needs like food, shelter, and clothing.

In India, the minimum wage calculation varies depending on the state government and worker’s skill level and the nature of their work among other factors.

Living Wage | The wage needed to provide the minimum income necessary to pay for basic needs is based on the cost of living in a specific community. In addition to basic needs, a living wage includes education, health, insurance, and other essential expenses.

Article 43 of the Indian Constitution mandates the State to ensure, through appropriate legislation or economic measures, a living wage for all workers, including those in agriculture, industry, and other sectors.

In the Raptakos case (1991), the Supreme Court advocated the concept and the right to living wage.

Fair Wage | A fair wage is a balance between a living wage and a minimum wage. It aims to provide workers with reasonable compensation that meets both their basic needs and ensures a decent standard of living.

Starvation Wage | Starvation wage refers to wages that are insufficient to provide the ordinary necessities of life. Workers earning starvation wages struggle to afford even basic essentials such as food, shelter, and healthcare.

Evolution of Wage System in India:

Current wage system in India:

In India, the current wage system operates under the National Floor Level Minimum Wage (NFLMW), established by the government as per the Code on Wages 2019. This mandates that employers cannot set wages below this minimum level. While the NFLMW is set at Rs 178 per day, states have the flexibility to revise minimum wage rates accordingly, as outlined in Section 5 of the Code on Wages 2019.

Issues with the Current Wage System:

The current National Floor Level Minimum Wage (NFLMW) of ₹176 per day, set in 2017, lags far behind other countries in the Asia-Pacific region, such as China, Vietnam, and Bangladesh. By adopting a living wage approach, India can address the disparity and ensure fair compensation for workers, as demonstrated by examples from countries like Brazil and developed economies such as Australia, the UK, and the US.

Need for Living Wage Standard:

Need | Description

Insufficiency to Meet Basic Needs | The current minimum wage is inadequate for basic needs due to inflation.

45% of salaried workers earn less than Rs 9750 monthly, pushing many below the poverty line.

Alleviating Poverty | Transition to living wages aims to uplift millions out of poverty.

Wage Discrepancies | Over 500 million workers, 90% in the unorganized sector, earn varying minimum wages, some below the poverty line.

About 80% of unorganized sector workers earn below government-stipulated minimum wages.

Achieving SDGs | India is committed to SDGs including decent work and economic growth; living wages can expedite poverty reduction efforts.

Reducing Inequalities | India’s high inequality requires wage structure redesign.

Strong economic growth indicates the capacity for higher wages.

Positive Work Culture | Higher wages can boost morale, and productivity, reduce turnover, and enhance customer satisfaction.

Investing in employee well-being fosters loyalty and work ethic.

Legislations on Minimum Wages:

Legislations on Minimum Wage in India have evolved over time. Until 2019, the Minimum Wages Act of 1948 governed minimum wage fixation. This Act allowed the Central government to set wages for certain industries, while State governments had jurisdiction over others, including the private sector. The introduction of the Code of Wages in 2019 aimed to standardize wage regulations and ensure that minimum wages do not fall below the National Wage Floor (NFW). However, full implementation of this code, which is applicable nationwide, is still pending.

Case Studies:

• United Kingdom: Adoption of living wage standards has led to improved employee satisfaction and productivity.

• United States: Initiatives like Seattle’s $15 per hour minimum wage have enhanced working conditions for low-wage workers.

What Needs to be done:

• Minimum Wages for Gig Workers: Currently, only three platforms, including Bigbasket, Flipkart, and Urban Company, have minimum wage policies to ensure workers earn at least the local minimum wage.

• Government Legislation and Policies: Governments should enact laws beyond minimum wage standards, considering comprehensive policies that reflect the true cost of living.

• National Multidimensional Poverty Index: Incorporating health, education, and standard of living indicators into the definition of living wages can align with India’s multidimensional poverty index.

• Inflation Adjusted Wage: To address market volatility, minimum wages should be adjusted for inflation, ensuring alignment with economic fluctuations.

• Overcoming Implementation Challenges: Governments can support small businesses facing increased labour costs through incentives like tax credits or grants.

• Collective Bargaining: Empowering workers through collective bargaining ensures their interests are represented in wage negotiations.

• Adaptation and Innovation: Collaboration between policymakers, businesses, and labour advocates is crucial to mitigate the impact of automation and the gig economy on worker rights and fair compensation.

• Integration with Sustainable Development Goals: Aligning living wages with sustainable development goals strengthens the global commitment to fair compensation and socioeconomic progress.

Code of Wages Act 2019:

India’s Minimum Wage Policy under the Code of Wages Act 2019 aims to modernize outdated labour laws, ensuring transparent and accountable regulations. It universalizes minimum wage provisions for all sectors, guaranteeing timely payment and the “Right to Sustenance” for workers. The Central Government determines floor wages considering living standards, allowing for regional variations. State-set minimum wages must exceed the floor wage. The Code introduces the concept of floor wage, preventing states from setting wages below this baseline. However, concerns arise regarding potential capital flight due to regional wage disparities.

Insta Links

Insights into Editorial: The minimum wage solution

Mains Links

Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC 2021)

Prelims Links:

In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers? (UPSC 2022)

(a) Central Statistics Office (b) Department for Promotion of Industry and Internal Trade (c) Labour Bureau (d) National Technical Manpower Information System

Ans: C

UNESCO’s Memory of the World Asia-Pacific Regional Register

#### Facts for Prelims (FFP)

Source: NewsOnAir

Context: The Ramcharitmanas, Panchatantra, and Sahṛdayāloka-Locana have been added to UNESCO’s Memory of the World Asia-Pacific Regional Register, celebrating India’s rich literary heritage and cultural legacy.

Literary Work | Author | Description

Ramcharitmanas (Awadhi) | Goswami Tulsidas | An epic poem consisting of seven Kāndas; a poetic retelling of the Ramayana.

Panchatantra (Sanskrit) | Pt. Vishnu Sharma | One of the oldest collections of Indian fables, consisting of five parts with a ‘story within a story’ structure.

Sahrdayāloka-Locana (Sanskrit) | Acharya Anandvardhan | A text on Indian poetics with commentary by philosopher Abinava Gupta.

About UNESCO’s Memory of the World Asia-Pacific Regional Register:

• Launched in 1992.

• It consists of three Registers namely, International, Regional and National Register.

• International Register consists of several Indian entries namely Tamil Medical Manuscript Collection, Saiva manuscripts Rig Veda etc.

Chabahar port

#### Facts for Prelims (FFP)

Source: TH

Context: India and Iran have signed a 10-year contract for the operation of the Chabahar port, marking a significant milestone in their maritime cooperation.

The agreement enables the operation of the Shahid-Behesti terminal by Indian Ports Global Ltd. (IPGL) in collaboration with Iran’s Port and Maritime Organisation (PMO). With an investment of approximately $120 million from IPGL, India has also offered a credit window of $250 million for infrastructure improvement projects related to Chabahar. This agreement aims to enhance trade, marine cooperation, and transhipment, benefiting not only India and Iran but also Afghanistan.

About the Port

Chabahar Port, located in Iran’s Sistan and Baluchestan province, is strategically significant as the only deep-sea port in Iran with direct ocean access. It is part of the proposed International North-South Transport Corridor (INSTC), linking the Indian Ocean and the Persian Gulf to the Caspian Sea and northern Europe. For India, Chabahar Port offers a counterbalance to Pakistan’s Gwadar Port and China’s Belt and Road Initiative, providing access to Afghanistan and Central Asia. Challenges in the project’s execution include US sanctions on Iran impacting equipment suppliers and proposed Chinese involvement in Chabahar’s duty-free zone, potentially hindering India’s interests.

Chabahar’s strategic importance as a vital trade artery connecting India with Afghanistan and Central Asian countries is underscored, emphasizing its role in regional economic development and stability.

China – India’s largest trading partner

#### Facts for Prelims (FFP)

Source: LM

Context: In FY24, China reclaimed its position as India’s largest trading partner with bilateral trade reaching $118.4 billion, driven by a 3.24% increase in imports to $101.7 billion and an 8.7% rise in exports to $16.67 billion as per Global Trade Research Initiative (GTRI) report.

• This marked a shift from the previous two years when the US held the top spot.

• India-US trade slightly decreased to $118.3 billion, with exports falling by 1.32% and imports dropping by 20%.

• Over the past five years, India’s trade deficit with China has widened significantly due to a 44.7% surge in imports, particularly in critical sectors like telecom, technology components, and EV batteries.

The GTRI report highlights a broader trend of increased trade deficits with key partners such as Russia and the UAE while showing significant growth in trade with countries like Saudi Arabia.

India International Bullion Exchange (IIBX)

#### Facts for Prelims (FFP)

Source: Business Line

Context: The State Bank of India (SBI) has become the first bank to be a trading-cum-clearing member of the India International Bullion Exchange (IIBX) at GIFT City in Gujarat.

• This allows SBI’s branch at GIFT City to conduct and settle trades on the IIBX platform on behalf of its clients.

• According to RBI guidelines, Indian bank branches at GIFT IFSC can act as trading and clearing members of IIBX, and special category clients can import gold through IIBX.

About India International Bullion Exchange (IIBX):

• The IIBX is located at the GIFT City (Gujarat International Finance Tec-City) in Gandhinagar, Gujarat.

• GIFT City is a planned business district aimed at becoming a global financial and IT services hub.

Purpose: The primary objective of the IIBX is to create a globally recognized bullion trading platform. It aims to bring transparency, standardization, and cost efficiency to the bullion market, benefitting various stakeholders, including miners, importers, banks, and jewellers.

Nancy Grace Roman Telescope

#### Facts for Prelims (FFP)

Source: Space.com

Context: NASA’s upcoming Nancy Grace Roman Space Telescope, set to launch in late 2026, will search for tiny primordial black holes dating back to the Big Bang.

• These hypothetical black holes, with masses similar to Earth or even large asteroids, could revolutionize theoretical physics if detected.

How it works?

• Detection of these small black holes, which would be impossible to form by any known process, would utilize gravitational lensing, where the black holes bend light from distant sources.

• This technique, currently used to find rogue planets, will help differentiate between these black holes and other objects statistically.

Confirming their existence would have profound implications for understanding galaxy formation, dark matter, and cosmic history, challenging Stephen Hawking’s theory that smaller black holes should have evaporated through Hawking radiation over 13.8 billion years.

High Energy Photon Source (HEPS)

#### Facts for Prelims (FFP)

Source: Nature

Context: China is set to become the first country in Asia with a fourth-generation synchrotron light source with the completion of the High Energy Photon Source (HEPS).

• This advanced facility will produce some of the world’s brightest X-rays, significantly enhancing research capabilities across various scientific fields.

• HEPS will accelerate electrons to 6 gigaelectron volts, enabling high-resolution imaging at nanometre scales and facilitating rapid experiments.

About HEPS (High Energy Photon Source):

• HEPS is recognized as the brightest synchrotron X-ray source in Asia.

Technology used:

• Synchrotrons use electricity to generate intense beams of light, over a million times brighter than the sun.

• They utilize a multi-bend achromat lattice, a complex array of magnets, to produce narrower and brighter X-ray beams.

India previously developed its own synchrotron, Indus-1.

India is an associate member of the European Synchrotron Radiation Facility (ESRF) in Grenoble, France.

First human recipient of pig kidney transplant dies

#### Facts for Prelims (FFP)

Source: IE

Context: A recipient of a modified pig kidney transplant passed away about two months after the surgery, with no indication that the transplant caused the death.

What is Xenotransplantation?

It involves transplanting non-human animal cells, tissues, or organs into humans to address the shortage of donor organs for transplantation.

Why Pigs are used?

Pigs are commonly used due to their similar organ size, physiology, and immune system to humans. Organs such as the heart, liver, and lungs can be utilized. The process involves gene editing technologies like CRISPR-Cas9 to modify pig genes for better compatibility with humans.

Benefits include an alternative organ supply and reducing shortages, but concerns remain about organ rejection, infection risks, and animal welfare.

Concentration of Carbon Dioxide (Keeling Curve)

#### Facts for Prelims (FFP)

Source: Keeling curve

Context: In March 2024, the monthly average concentration of carbon dioxide at NOAA’s Mauna Loa Observatory spiked by 4.7 parts per million compared to March 2023, marking the largest year-over-year gain ever recorded.

This surge, attributed to ongoing global fossil fuel consumption, surpassed the previous record set during the 2015-2016 El Niño. The acceleration in CO2 growth, exacerbated by El Niño events, intensifies the atmosphere’s heat-trapping ability and contributes to ocean acidification.

About Keeling Curve:

The Keeling Curve is a record of atmospheric carbon dioxide (CO2) concentrations measured at the Mauna Loa Observatory in Hawaii. It was initiated by scientist Charles David Keeling in 1958.

About NOAA:

The National Oceanic and Atmospheric Administration is a Washington, D.C.-based scientific and regulatory agency within the United States Department of Commerce, a United States federal government department.

#### Mapping

Source: TOI

Context: Venezuela may become the first nation to lose all its glaciers as climate scientists reclassify its last glacier, the Humboldt, as an ice field due to its diminutive size.

The glacier has drastically shrunk over the years, with one study indicating it reduced to less than 10 hectares by 2015-2016.

About Venezuela:

It is a country on the northern coast of South America. To the northwest are the Andes Mountains and the colonial town of Mérida, a base for visiting Sierra Nevada National Park. Caracas, the capital, is to the north.

The country’s economy is strongly dependent on hydrocarbons, as well as on loans from China and Russia. Traditionally, petroleum represents more than 85% of Venezuela’s exports.