UPSC CURRENT AFFAIRS – 9 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:

• Analysis of India’s Aviation Sector

Content for Mains Enrichment (CME)

• Virtual Touch

Facts for Prelims (FFP)

• Right to Peaceful Death

• Reports/Study in News

• India VIX

• Repatriation and Disinvestment

• RBI’s Stricter Regulations for Project Finance

• Semi Cryogenic Pre-Burner Ignition Test Article (PITA)

• Global Biofuel Alliance (GBA)

Mapping

• Darfur (Sudan)

Analysis of India’s Aviation Sector

#### GS Paper 3

Syllabus: Indian Economy: Transportation Sector

Source: IE

Context: IndiGo’s recent order for 30 wide-body Airbus A350-900 aircraft has sparked interest in its plans for long-haul, low-cost air travel, and highlighted India’s booming aviation sector

What is a Long-haul, low-cost air travel model?

It extends low-cost carriers’ operations to non-stop, long-duration flights at reduced fares. Some examples include Scoot, Jetstar, and French Bee, which offer hybrid products and target underserved routes.

However, it faces challenges like higher fuel costs, increased operating expenses for wide-body aircraft, and maintaining efficient operations.

Status of India’s Aviation Sector:

Aspect | Details

Aviation Boom | India is the world’s third-largest domestic aviation market after the USA and China.

Infrastructure Development | The airport network has doubled from 74 in 2014 to 148 in April 2023, enhancing accessibility.

Regional Connectivity Scheme-UDAN | 517 RCS routes connecting 76 airports have facilitated air travel for over 1.30 crore people, promoting accessibility.

Passenger Growth | Post-Covid resurgence: Domestic airlines saw over 29% increase, and international airlines over 39% increase in passengers from Jan to Sep 2023 compared to 2022.

Carbon Neutrality | MoCA initiatives aim for carbon neutrality and net zero emissions at airports, with several airports already achieving carbon neutrality and operating on green energy.

Future Projections | India expects to handle over 140 million passengers in FY2024 and over 1.3 billion annually in the next 20 years.

Currently, there are 148 airports in India.

Factors propelling India’s aviation market:

• Rising incomes & middle-class expansion: Rapid urbanization and a burgeoning middle class led by economic growth have made air travel affordable and essential for more Indians. g. Number of middle-class households doubled to 29.5 million between 2001-2011.

• g. Number of middle-class households doubled to 29.5 million between 2001-2011.

• Increasing business travel demand: A growing economy and the rise of major industrial hubs have resulted in a greater number of people travelling to tier 1 cities and metros for work. g. Bangalore saw a 12% rise in businessman travellers in 2022 along with an IT sector boom.

• g. Bangalore saw a 12% rise in businessman travellers in 2022 along with an IT sector boom.

• Tourism sector prioritization and incentives: The government’s UDAN scheme offers viability gap funding for operationalizing underserved air routes, supporting regional tourism growth. g. The number of operational airports rose from 74 in 2014 to 140 in 2021.

• g. The number of operational airports rose from 74 in 2014 to 140 in 2021.

• Emergence of low-cost carriers: Airlines like Indigo, and SpiceJet have helped drive down carrier costs by up to 50%, enabling even lower and middle-income groups to access air transport. g. Indigo accounted for 57% domestic market share as of 2022.

• g. Indigo accounted for 57% domestic market share as of 2022.

• Policy reforms and foreign investments: 100% FDI allowance, lower jet fuel taxes, and digitization of processes have made the sector more attractive for foreign players to offer services. g. Air India was acquired by Tatas, a Vistara joint venture Reduction of GST rate to 5% from 18% for domestic Maintenance, Repair and Overhaul (MRO) services

• g. Air India was acquired by Tatas, a Vistara joint venture

• Reduction of GST rate to 5% from 18% for domestic Maintenance, Repair and Overhaul (MRO) services

Challenges faced by the aviation sector in India:

• High Fuel Costs: Aviation Turbine fuel constitutes around 40% of airlines’ operating costs. With one of the highest fuel taxation regimes, costs remain disproportionately high. g. ATF prices rose by 120% between June 2021-22 alone.

• g. ATF prices rose by 120% between June 2021-22 alone.

• High operating costs: High taxes on aviation turbine fuel (ATF) and airport charges contribute to increased operating costs. Some Indian states charge up to 30% taxes on jet fuel, which makes shorter flight routes unprofitable for smaller airlines.

• Some Indian states charge up to 30% taxes on jet fuel, which makes shorter flight routes unprofitable for smaller airlines.

• Infrastructure Constraints: Severe shortage of airport slots and hangars at key airports like Mumbai and Delhi causes bottlenecks. Also results in heavy delays and congestion. g. Mumbai allows only 32 flights at peak time against demand for 48 flights.

• g. Mumbai allows only 32 flights at peak time against demand for 48 flights.

• Financial Stress: Multiple carriers like SpiceJet, GoAir and Air India struggled with heavy losses in recent years. High ATF Prices, and cut-throat competition has had a detrimental impact. E.g. – Jet Airways.

• Regional Imbalance: In spite of UDAN scheme efforts, air connectivity remains constrained across remote regions in North East, and Central India with several operational challenges. g. Just 16% of all routes operational under the UDAN scheme are reportedly profitable so far

• g. Just 16% of all routes operational under the UDAN scheme are reportedly profitable so far

• Safety & Regulatory Issues: The rapid rise in passenger volume has made it difficult for the DGCA regulatory body to ramp up effective safety monitoring with limited staff strength. g.: DGCA currently has just 132 flight operation inspectors against sanctioned strength of 172 technical officers.

• g.: DGCA currently has just 132 flight operation inspectors against sanctioned strength of 172 technical officers.

Government Initiatives:

• UDAN Scheme (Ude Desh ka Aam Nagrik)

• National Civil Aviation Policy, 2016

• Open Sky Agreement

• Digi Yatra for Seamless Travel

Way forward:

• Rationalize ATF pricing and taxes: Bring ATF under the GST ambit to ensure input tax credit benefits, rationalize excise duties to 8-10% against 11% currently as the jet fuel burden is disproportionately high.

• Augment airport infrastructure: Fast-track investments via PPP models in new airports and existing airport modernization. Initiatives of state governments like Haryana, Telangana, UP.

• Initiatives of state governments like Haryana, Telangana, UP.

• Aviation Tourism Packages: To make India a hub of Aviation tourism, our aviation industry can collaborate with the tourism industry to create innovative aviation-based tourism packages, offering scenic flights, adventure experiences, and aerial photography tours.

• Strategic policy support for fiscal consolidation: Facilitate long-term capital investments for fleet expansion, and MRO infrastructure. Fiscal incentives for regional connectivity provided viability gap funding.

• Fiscal incentives for regional connectivity provided viability gap funding.

• Robust safety oversight: Boost investments for automated, real-time digital surveillance systems across airports. Use AI-based tools for predictive risk assessment. The Independent Airport Authority concept can raise monitoring capabilities.

• Customized regional connectivity support: Continue viability gap funding for regional flights but also incentivize leasing smaller capacity planes (less than 80 seater) at concessional rates for tier 2/3 city operations through dedicated financing schemes.

Conclusion

Aviation is integral to equitable economic growth, so India needs to focus on the growth of this sector to achieve equitable growth.

Insta Links:

• Civil Aviation in India

Mains Link:

Examine the development of Airports in India through joint ventures under Public–Private Partnership (PPP) model. What are the challenges faced by the authorities in this regard? (UPSC 2017)

Virtual Touch

#### Content for Mains Enrichment (CME)

Source: IE

Context: Apart from the concepts of “good touch” and “bad touch”, minors must be taught the concept of “virtual touch” to enable them to recognise potential risks in cyberspace: Delhi HC

The court made the observations while refusing to grant bail to a woman accused of helping the main accused, her son, commit sexual assault upon a 16-year-old girl in 2021.

What is ‘Virtual Touch’?

‘Virtual Touch’ refers to the concept of teaching minors to recognize potential risks in cyberspace, alongside traditional concepts of “good touch” and “bad touch.” It involves educating them about appropriate online behaviour, identifying warning signs of predatory behaviour, understanding the importance of privacy settings and online boundaries, and developing critical thinking skills to assess the credibility of online contacts and safeguard personal information.

Right to Peaceful Death

#### Facts for Prelims (FFP)

Source: TH

Context: The article contrasts end-of-life care in India and the West, emphasizing the need for a dignified passing for all. It calls for a rational system to ensure peaceful deaths and highlights the Right to Peaceful Death

What is the Right to Peaceful Death?

The Right to Peaceful Death refers to the right of individuals to pass away with dignity and without unnecessary suffering.

It is not explicitly mentioned in the Indian Constitution. However, the Supreme Court of India has recognized the right to die with dignity as a fundamental aspect of the right to life under Article 21. This recognition came in the landmark case of Common Cause (A Regd. Society) v. Union of India (2018), where the court upheld the legality of passive euthanasia and the right to make advance directives for medical treatment.

Reports/Study in News

#### Facts for Prelims (FFP)

Reports/Study | Description

2024 World Migration Report | By International Organization for Migration (IOM)

Conflict and climate change stand as the chief catalysts behind global displacement, resulting in around 281 million international migrants globally, with 117 million individuals displaced, marking a historic peak.

India, in particular, faces significant impacts, as climate factors notably influence internal migration from regions such as Rajasthan, Uttar Pradesh, and Madhya Pradesh.

India hosts the largest population of international migrants worldwide, totalling 18 million, predominantly in countries like the UAE, USA, and Saudi Arabia.

Furthermore, in 2022, India emerged as the foremost recipient of remittances, surpassing the significant milestone of receiving over USD 111 billion, indicative of its substantial role in the global migrant workforce and economy.

About the IOM: Established in 1951 as part of the UN System, headquartered in Geneva, Switzerland. It comprises 175 member states and aims to address displacement issues and facilitate pathways for regular migration. It leads initiatives like the Global Compact For Migration.

Recipe for a Livable Planet: Achieving Net Zero Emissions in the Agrifood System’ report | By World Bank

Key Findings include: The agrifood system contributes nearly one-third of global greenhouse gas emissions, spanning food production to disposal. Developing countries, notably India, contribute significantly, with 60% of India’s emissions stemming from farm activities, especially livestock-related enteric fermentation.

The report emphasizes carbon sequestration in agriculture, like reducing enteric fermentation and enhancing fertilizer efficiency, as critical mitigation strategies.

World Bank (President: Ajay Banga; HQ: Washington DC; est. 1944) is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.

NIT Trichy study on Urban Heat Island | A study by NIT Trichy reveals a stark contrast in pollutant levels between urban and rural areas, with urban regions experiencing notably higher concentrations.

Aerosols, carbon monoxide (CO), and ozone (O3) directly contribute to the Urban Heat Island (UHI) phenomenon, where cities can be 5°C to 10°C warmer than nearby rural areas, exacerbating heat waves.

The urban heat island effect is when cities are warmer than nearby rural areas due to the concentration of heat-absorbing surfaces like buildings, roads, and other infrastructure. These surfaces absorb and re-emit the sun’s heat more than natural landscapes like forests and water bodies

#### Facts for Prelims (FFP)

Source: Moneycontrol

Context: India’s VIX surged above 16.5 amidst election-driven volatility, prompting caution from experts on leveraged positions. With the general election outcome nearing, market experts anticipate increased volatility.

What is India VIX?

India VIX is a volatility index that measures the expected volatility in the Indian stock market over the next 30 days. It is often referred to as the “Fear Index” because it reflects investors’ sentiments about the market’s future volatility.

A high India VIX suggests that investors expect significant fluctuations in stock prices, indicating uncertainty and risk in the market. Conversely, a low India VIX indicates expectations of relatively stable market conditions.

Repatriation and Disinvestment

#### Facts for Prelims (FFP)

Source: BS

Context: The recent decline in gross foreign direct investment (FDI) is concerning, but equally worrying is the increasing pace of repatriation and disinvestment.

What is repatriation and disinvestment?

Repatriation refers to the process of sending profits, dividends, or funds earned from investments in a foreign country back to the investor’s home country.

Disinvestment, on the other hand, involves reducing or liquidating investments in a particular asset or sector, typically by selling off shares or assets owned by a government, company, or individual.

Concerns: Repatriation and disinvestment are concerning because they indicate a withdrawal of capital from India, potentially undermining the positive impact of foreign direct investment (FDI) inflows.

• 46 FDI proposals were pending with 17 government departments for over 12 weeks

• Gross FDI inflows fell by 16% to $71 billion in 2022-23, with repatriation and disinvestment accounting for 41% of it.

This trend, rising steadily since 2001-02, negates FDI’s positive impact, necessitating institutional oversight revival, investigation into causes of repatriation, and simplification of procedures to retain and attract foreign investors.

RBI’s stricter Regulations for Project Finance

#### Facts for Prelims (FFP)

Source: ET

Context: The Reserve Bank of India (RBI) has proposed stricter regulations for project finance, aiming to reduce risks in infrastructure projects. These rules include higher provisioning during construction and classifying delayed projects as non-performing assets.

According to RBI guidelines, lenders must maintain 5% provisions for projects under implementation. Provisioning involves banks setting aside funds from their profits to cover potential losses.

Lenders fear these rules could hinder project viability and slow India’s capital expenditure momentum.

Semi Cryogenic Pre-Burner Ignition Test Article (PITA)

#### Facts for Prelims (FFP)

Source: ISRO

Context: ISRO recently achieved a milestone by conducting the first PreBurner Ignition trial for the Semi-Cryogenic Engine (SCE)-200.

This ignition process is crucial in developing liquid rocket engine systems.

The SCE uses liquid oxygen (LOX) as an oxidizer and refined kerosene as fuel, aiming to produce a thrust of 2,000 kilonewtons (kN).

ISRO’s Liquid Propulsion Systems Centre in Bengaluru leads the SCE development, aiming to enhance the payload capacity of Launch Vehicle Mark-3 (LVM3) and future launch vehicles. Unlike traditional cryogenic engines, SCEs offer advantages such as easier storage and handling, increased thrust capacity, and eco-friendliness, making them more cost-effective.

Global Biofuel Alliance (GBA)

#### Facts for Prelims (FFP)

Source: BS

Context: The Global Biofuel Alliance (GBA) outlined a work plan at a recent meeting, focusing on assessing country landscapes, drafting policy frameworks, and conducting biofuel workshops.

India proposed three workstreams to support biofuel trade, raise awareness, and enhance adoption. However, uncertainty persists regarding the launch date and location of the GBA’s new secretariat and governance structure.

The Global Biofuel Alliance (GBA) was launched to accelerate the global adoption of biofuels during India’s G20 presidency (October 2023). It unites major biofuel producers and consumers like the US, Brazil, and India. Nineteen countries and 12 international organizations have committed to joining or supporting the GBA. Its goal is to enhance global biofuels trade for a more sustainable future.

Darfur (Sudan)

#### Mapping

Source: CNN

Context: The UN warns of imminent starvation in Darfur, Sudan, as escalating violence worsens the country’s hunger crisis.

Civil war since April 2023 has led to a devastating humanitarian situation, with people resorting to eating “grass and peanut shells” to survive, according to the World Food Programme.

About the Darfur region:

It is a region in western Sudan that has been plagued by violent conflict and humanitarian crises. The area has experienced ethnic tensions between Arab and African communities, leading to widespread violence and human rights abuses.

Sudan is a country in Northeast Africa. It borders the Central African Republic to the southwest, Chad to the west, Egypt to the north, Eritrea to the northeast, Ethiopia to the southeast, Libya to the northwest, South Sudan to the south, and the Red Sea. It was the largest country by area in Africa and the Arab League until the secession of South Sudan in 2011.