UPSC CURRENT AFFAIRS – 4 April 2024

InstaLinks : 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 ina 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 : 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 ina 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:

• India’s Defence Exports Reaches an All-time High

GS Paper 4:

• Examples of Ethics

Facts for Prelims (FFP)

• 125 years of Kodaikanal Solar Observatory

• BIMSTEC Charter

• RBI@90

• India’s coal and lignite production

• Anti-Dumping Investigation

• Shallow fakes

• Artificial sun

• Clean Energy Transitions Programme 2023

Mapping

• Paradip Port

India’s Defence Exports Reaches an All-time High

#### GS Paper 3

Syllabus: Internal Security

Source: IE

Context: India’s defence exports soared to a record high of Rs. 21,083 crore in FY 2023-24, marking a remarkable growth of 31 times over the past decade and a 32.5% increase from the previous fiscal year.

Key achievements:

• Record High Exports: Indian defence exports reached an all-time high of Rs. 21,083 crores in FY 2023-24, indicating a substantial growth trajectory.

• Remarkable Growth: The defence export sector witnessed a remarkable growth of 31 times over the past decade, compared to FY 2013-14, showcasing significant expansion and development.

• Increased Export Authorizations: The number of export authorizations rose to 1,507 in FY 2023-24, indicating a growing demand for Indian defence products and technologies in the global market.

• Private Sector Contribution: The private sector played a significant role, contributing approximately 60% to defence exports, highlighting the increasing participation and capability of private defence firms in meeting export demands

How does high defence export help India?

Benefit | Explanation

Economic Growth | Boosts the economy through increased revenue, job creation, and enhanced manufacturing capabilities.

It reduces India’s import dependence. India allocates around 1.8% of its GDP towards defence spending

Technological Advancement | Drives innovation and technological growth in the defence sector, fostering advancements in other industries.

Diplomatic Relations | Strengthens diplomatic ties with importing countries, facilitating strategic partnerships and cooperation.

Global Influence | Enhances India’s stature in the global arena, positioning it as a reliable defence partner.

India has been successful in exporting products such as personal protective items, offshore patrol vessels, and avionics to countries like Maldives, Sri Lanka, Russia, France, Nepal, Mauritius, Sri Lanka, Israel, Egypt, the UAE, and Chile

Self-Reliance | Reduces dependency on imports, promoting indigenous production and self-sufficiency in defence capabilities.

Military Modernization | Supports modernization of armed forces by providing access to advanced technologies and equipment.

Balance of Trade | Contributes to a positive balance of trade, helping to offset costs of defence procurement and imports.

Integration with Global Defense Value Chain | Exporting defence products to major countries like Italy, Nepal, etc., integrates India into the global defence value chain, enhancing its strategic relevance and influence in the international arena.

Steps taken by India:

Steps | Related Steps Taken

Enhanced Foreign Direct Investment (FDI) | Liberalization of FDI policy allowing up to 74% FDI under automatic route and 100% by government approval (e.g., The Swedish Arms Major SAAB’s Announcement: First 100% FDI project for manufacturing Carl Gustav M4 rocket system in India.)

Innovation for Defence Excellence (iDEX) | Launch of iDEX scheme involving Start-ups & Micro, Small and Medium Enterprises (MSMEs).

Defence Acquisition Procedure (DAP) 2020 | Implementation of new procurement category – Buy (Global-Manufacture in India). The Defence Acquisition Procedure ensures 50% indigenous content in procurement.

Establishment of Defence Industrial Corridors | Establishment of two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu

Priority to the procurement of capital items falling in the Buy Indian (IDDM) Category | Notification of four ‘Positive Indigenization Lists’ of a total of 411 items of Services and three ‘Positive Indigenization Lists’ of a total of 3,738 items of Defence Public Sector Undertakings (DPSUs).

Simplification of Industrial licensing process with longer validity period.

Rationalized Defence Product List which required an Industry License.

Launch of an indigenization portal namely SRIJAN to facilitate indigenisation by Indian Industry including Micro, Small and Medium Enterprises (MSME).

Financial Investments | Increased Domestic Procurement Budget: From 40% to 75% of the total capital procurement budget dedicated to domestic procurement.

Increasing Private Contributions

DRDO | Review of Defence Research and Development Organisation (DRDO) and focus on building “Fit to Purpose” capabilities

Participation of Women | Initiatives like Nari Shakti and the opening of Sainik Schools and the National Defence Academy to women have significantly increased the participation of women in the armed forces.

Naval Platform Development | Development of naval platforms including projects like the INS Vikrant and Project 17A frigates.

Other Developments | Launch of Mission DefSpace

Issues with India’s defence exports include:

• Failure to Convert Interest into Business Action: Despite interest from countries like Indonesia, Malaysia, and others in products like BrahMos and Akash missile systems, India has struggled to translate this interest into concrete business deals.

• Inability to Secure Big Naval Defence Orders: India has faced challenges in securing significant naval defence orders from countries such as Oman, Myanmar, Mauritius, and Vietnam.

• Lack of Competitiveness: Indian defence products are often perceived as having lower quality and higher costs compared to major exporters like the US, Russia, and Israel.

• Limited Export Portfolio: India’s defence exports are restricted to a few countries and product categories, hindering its ability to fully tap into the global defence market.

• Bureaucratic Hurdles: The defence export process in India involves bureaucratic hurdles and red tape, making it challenging for exporters to navigate.

• Unclear Policy: India lacks a well-defined defence export policy, leading to confusion and uncertainty among potential exporters.

• Dependence on Imports: Despite strides in indigenization, India still relies heavily on imports for its defence equipment, limiting its capacity to export advanced defence technology.

To boost its defence exports, India can focus on:

• Dedicated Export Infrastructure: Establishing specialized infrastructure for training, market intelligence, and handholding of defence exporters, including training programmes for PSU officers and setting up a dedicated Export Promotion Council for the Defence Sector.

• Trade Support: Providing dedicated support from regulatory agencies to streamline approval processes for production and export compliances, and facilitating participation in trade fairs, Buyer-Seller Meets, and knowledge-sharing platforms.

• R&D Infrastructure: Exploring joint or co-development opportunities with other countries through the Department of Defence Production, and being open to sharing R&D infrastructure with potential buyers, such as offering fighter aircraft or rocket launcher systems developed through joint/co-development arrangements.

Conclusion

Self-reliance in defence manufacturing is significant not only for India’s defence capabilities but also for ensuring sovereignty and security. Building a private industrial base with proactive policies, funding RnD, creating low-interest regimes to bring down capital costs, addressing issues of exchange rates and providing stability can help India’s defence manufacturing sector become globally competitive.

Mains Link:

Foreign Direct Investment (FDI) in the defence sector is now set to be liberalized: What influence this is expected to have on Indian defence and economy in the short and long run? (UPSC 2014)

Prelims Link:

Consider the following in respect of the Indian Ocean Naval Symposium (IONS): (UPSC 2017)

• The inaugural IONS was held in India in 2015 under the chairmanship of the Indian Navy.

• IONS is a voluntary initiative that seeks to increase maritime cooperation among navies of the littoral states of the Indian Ocean Region.

Which of the above statements is/are correct?

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

Ans: B

Which one of the following is the best description of ‘INS Astradharini’, that was in the news recently? (UPSC 2016)

(a) Amphibious warfare ship (b) Nuclear-powered submarine (c) Torpedo launch and recovery vessel (d) Nuclear-powered aircraft carrier

Ans: C

Examples of Ethics

#### GS Paper 4

Syllabus: Applications of Ethics

Example 1: Ban on Diversity Programs in the US

Source: TH

Context: Many U.S. universities have ended diversity programs, impacting minority students.

What are Diversity Programs?

Diversity programs in US universities aim to address inequalities by giving special consideration to minority students, such as Black, Indian American, Hispanic, and Native American students. These programs include initiatives like affirmative action in admissions, race-based scholarships, and diversity, equity, and inclusion (DEI) programs. They seek to promote diversity and provide opportunities for underrepresented groups in higher education.

Ethical issues concerned here are:

• Equal Opportunity vs. Meritocracy: The debate over whether affirmative action and diversity programs promote equal opportunity for minority students or undermine the principle of meritocracy

• Academic Freedom vs. Ideological Control: The restrictions and bans on diversity, equity, and inclusion (DEI) programs raise concerns about academic freedom and the imposition of ideological control over educational institutions

• Ethical Responsibilities of Institutions: Universities and educational institutions grapple with their ethical responsibilities to promote diversity, equity, and inclusion

• Ethical implications of rolling back diversity initiatives prompt questions about societal moral obligations to address systemic racism and promote equity.

• Systemic Inequality: The long-standing inequalities faced by minority students in higher education, including disparities in access to resources, opportunities, and representation

Example 2: Sending Indian Workers to Conflict Zone

Source: Scroll

Context: The first batch of 64 Indian construction workers from Haryana and Uttar Pradesh is heading to Israel amid the Gaza war. Israeli construction industry requested 100,000 Indian workers to replace Palestinians.

The NSDC International (with 49% government ownership), facilitates Indian workers’ mobility to Israel under a Government-to-Government agreement

Advantages:

• Economic Opportunity: Indian workers have access to higher wages in Israel compared to their home country, providing economic opportunities for them and their families.

• Skill Development: Workers gain valuable skills and experience through international work, potentially improving their long-term employability and earning potential.

• Diplomatic Relations: Facilitating the movement of workers between India and Israel strengthens diplomatic ties and promotes cooperation between the two nations.

• Meeting Labour Demand: Israel’s construction industry benefits from the influx of skilled labour to fill gaps created by the cancellation of Palestinian work permits.

Ethical Concerns:

• Safety and Security: Sending workers to a conflict zone raises concerns about their safety and well-being amid ongoing violence and instability.

• Exploitation: There’s a risk of workers from outside Israel being mistreated or exploited, particularly if they lack adequate legal protections or support systems.

• Moral Dilemmas: Workers may face ethical dilemmas when witnessing or being exposed to violence, suffering, or human rights abuses, potentially leading to psychological trauma.

• Displacement of Local Workers: Importing foreign labour may negatively impact local Palestinian workers by reducing job opportunities or driving down wages in the region’s labour market.

A framework agreement ensures the safety of Indian workers in Israel:

• Indian workers receive equal labour rights as Israeli citizens.

• They are provided with proper lodging, medical insurance, social security coverage, and lawful wages and benefits.

125 years of Kodaikanal Solar Observatory

#### Facts for Prelims (FFP)

Source: DST

Context: The 125th anniversary of Kodaikanal Solar Observatory (KSO) was celebrated recently on April 1, 2024, by the Indian Institute of Astrophysics (IIA)

Aspect | Description

What is Kodaikanal Solar Observatory (KoSO)? | It is an observatory owned and operated by the Indian Institute of Astrophysics. Established in 1899, it is located in Kodaikanal, Tamil Nadu, and focuses on solar studies

Need for such an observatory | The great Drought of 1875-1877 emphasized the need for solar studies to understand weather patterns. India’s geographical significance further underscores the importance of such research, given its impact on global weather.

Origin | The concept originated in the late 19th century. Solar Physics Observatory was approved in August 1893. The foundation stone was laid by Lord Wenlock in 1895. March 14, 1901, marked the commencement of systematic observations

Location | Palani Hills of Tamil Nadu

The place was chosen due to its favourable atmospheric conditions and high-altitude, dust-free environment. These factors provide clear and stable viewing conditions for solar observations, making it an ideal site for studying the Sun’s activities and phenomena.

Instruments at KoSO | Initially focused on sunspots, prominences, and solar radiation. Advanced instruments include the H-alpha telescope and the White Light Active Region Monitor (WARM)

Significant achievements of KoSO | Identified the Evershed Effect (a phenomenon observed in sunspots where gas flows radially outward from the centre of the sunspot)

Expanded research scope to cosmic rays, radio astronomy, ionospheric physics, and stellar physics

About the Indian Institute of Astrophysics | Indian Institute of Astrophysics (founded in 1971; HQ: Bengaluru), is an autonomous research institute wholly funded by the Department of Science and Technology. IIA conducts research primarily in the areas of astronomy, astrophysics and related fields

About Kodaikanal | Kodaikanal is a hill town in the southern Indian state of Tamil Nadu. It’s set in an area of granite cliffs, forested valleys, lakes, waterfalls and grassy hills.

BIMSTEC Charter

#### Facts for Prelims (FFP)

Source: AIR

Context: Nepal’s Lower House of Parliament endorsed the BIMSTEC Charter recently.

• The BIMSTEC Charter aims to enhance collaboration among member countries, including Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand, in areas such as economic prosperity, social progress, and connectivity.

• BIMSTEC, established in 1997, seeks to foster cooperation and development in the region.

The BIMSTEC Charter is a foundational document that outlines the principles, objectives, and framework for cooperation among member states of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

It establishes the legal basis for the organization and defines its structure, functions, and decision-making processes.

The charter aims to promote regional cooperation and integration among BIMSTEC member countries, which include Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand.

Key areas of cooperation covered by the charter include economic development, trade, investment, technology transfer, connectivity, and people-to-people exchanges.

The endorsement and ratification of the BIMSTEC Charter by member states are essential for its implementation and the effective functioning of the organization.

#### Facts for Prelims (FFP)

Source: PIB

Context: The Prime Minister addressed the opening ceremony of RBI@90 in Mumbai, marking 90 years of the Reserve Bank of India (RBI).

Brief History of RBI:

• Royal Commission on Indian Currency, 1926 (Hilton Young Commission) recommended the establishment of the RBI, a suggestion reiterated by the Indian Central Banking Enquiry Committee in 1931.

• The RBI was founded in 1935 under the Reserve Bank of India Act, 1934, with Sir Osborne Smith serving as its inaugural Governor.

• In 1949, the RBI was nationalized, marking a pivotal moment in its institutional history.

The Reserve Bank of India (RBI) has evolved significantly in recent years:

• Inflation-targeting central bank

• Foreign exchange reserves

• Macroeconomic stability

• Reduction in NPAs

• Technology in payments

• Central bank digital currency

However, the RBI faces several challenges:

• Banking Regulation and Supervision

• Transparency with Regulated Entities

• Regulating New-Age Fintech Firms

• Limited Powers over Public-Sector Banks

• Potential Fiscal Dominance of Monetary Policy

India’s coal and lignite production

#### Facts for Prelims (FFP)

Source: Economic Times

Context: India’s coal and lignite production reached an unprecedented milestone, surpassing 1 billion tonnes in the fiscal year 2023-24, compared to 937 million tonnes in the previous fiscal.

• India aims to eliminate coal imports by 2025-26, with coal imports for blending purposes notably decreasing in FY24 compared to the previous fiscal.

The current status of the coal sector in India is as follows:

Geological reserves: India possesses the 5th largest geological reserves of coal globally and ranks as the 2nd largest consumer of coal in the world.

Production: Coal India Limited (CIL) stands as the largest producer, contributing to over 70% of coal production in India.

Import: In the fiscal year 2023-24 (until January 2024), India imported 217.75 million tonnes of coal. Non-coking coal dominates the imports, accounting for approximately 77% of the total imported coal.

Anti-Dumping Investigation

#### Facts for Prelims (FFP)

Source: ET

Context: India has launched an anti-dumping investigation (initiated by the Directorate General of Trade Remedies (DGTR)), into the import of a chemical used in the rubber industry from China and Japan.

What is dumping?

When the goods are exported by a country to a foreign country at a price lower than the price it charges in its own home market is called dumping.

What is Anti-Dumping?

Anti-dumping duties are taxes imposed on imported goods in order to compensate for the difference between their export price and their normal value, if dumping causes injury to producers of competing products in the importing country. This practice can harm domestic industries by undercutting their prices and creating unfair competition. Anti-dumping measures are part of WTO regulations aimed at creating a level playing field for domestic producers against foreign competitors

Why anti-dumping investigation?

An anti-dumping probe is underway for imports of ‘insoluble sulphur’ from China and Japan. Insoluble sulphur, an amorphous form of sulphur, doesn’t dissolve in carbon disulphide and is crucial in the rubber industry. It serves as a vital additive agent in rubber products like tyres and shoes, enhancing their quality and wearability. Additionally, it acts as a vulcanization accelerator in the rubber manufacturing process, facilitating the hardening of rubber through cross-linking of molecules with other substances.

What is anti-dumping?

Anti-dumping is a protective tariff imposed by a government on foreign imports sold at a price lower than the home market price. It aims to counter distortions in trade caused by dumping. Anti-dumping is permitted by the WTO

Shallow fakes

#### Facts for Prelims (FFP)

Source: IE**

Context: The prevalence and impact of shallow fakes during elections have been a concern.

• Shallow Fakes are manipulated images, videos, and voice clips created without AI technology.

• Unlike deepfakes, shallow fakes rely on traditional editing tools to deceive viewers.

• They are increasingly used in political contexts, particularly during elections, to spread misinformation.

• The blurring line between shallow fakes and deepfakes, coupled with the accessibility of editing tools, has amplified their prevalence.

Artificial sun

#### Facts for Prelims (FFP)

Source: WION

Context: Scientists in South Korea have achieved a new world record in nuclear fusion, sustaining temperatures of 100 million degrees Celsius, seven times hotter than the sun’s core.

• This feat, conducted using the Korea Superconducting Tokamak Advanced Research device (KSTAR), aims to replicate the fusion reaction powering stars to unlock clean, limitless energy.

• The experiment involved fusing atoms to release massive energy without carbon emissions, crucial for addressing climate change.

• KSTAR sustained these high temperatures for 48 seconds, breaking the previous record of 30 seconds. To achieve this, scientists used tungsten instead of carbon in the reactor’s “diverters” to extract impurities and heat.

• Their goal is to sustain these temperatures for at least 300 seconds by 2026, critical for scaling up fusion operations.

This research will contribute to the International Thermonuclear Experimental Reactor (ITER) in France, aiding in advancing fusion energy commercialization.

Clean Energy Transitions Programme 2023

#### Facts for Prelims (FFP)

Source: IEA

Context: The Clean Energy Transitions Programme (CETP) is the International Energy Agency’s (IEA) primary initiative aimed at accelerating global progress towards a net-zero energy system.

• The CETP Annual Report 2023 outlines the program’s achievements in the past year, emphasizing its focus on emerging markets and developing economies.

Highlights include:

• The introduction of new fuel standards for trucks in Indonesia, the Energy Transition Plan in Uganda, and regulations for the spot electricity market in China, all aligned with IEA recommendations.

• The report also mentions significant publications such as the Latin America Energy Outlook and a World Energy Outlook Special Report on universal access to clean cooking in Africa.

• Additionally, the CETP supported the IEA’s work on energy efficiency, critical minerals, energy employment, clean energy investment, and capacity building for policymakers.

• The program played a crucial role in global energy dialogues and engagements, including G20, G7, and ASEAN Ministerial meetings, as well as COP28 in Dubai, supporting the IEA’s ambitious action plan towards 1.5°C-aligned energy transitions.

Paradip Port

#### Mapping

Source: PIB

Context: Paradip Port Authority (PPA) has achieved a significant milestone by becoming the top cargo-handling major port in India, surpassing Deendayal Port, Kandla.

About Paradip Port

It is located in Odisha and is a vital deep-water port on the East Coast of India, situated at the convergence of the Mahanadi River and the Bay of Bengal. Administered by the Paradip Port Trust (PPT), it holds the distinction of being the first major port on the East Coast established after independence. In 2020, the Union Cabinet approved the development of its inner harbour facilities and the construction of a Western Dock to accommodate cape-size vessels.

Along with Deendayal Port and V.O. Chidambaranar Port, Paradip Port has been designated as a Green Hydrogen hub by the government. Unlike minor ports, major ports like Paradip are managed by central government authorities and handle international trade, contributing significantly to India’s maritime commerce.

India has 205 minor and intermediate ports, along with 13 major seaports (12 government-owned and one private)