Current Affairs 21 January 2025

Daily Current Affairs Quiz
21 January, 2025

International Affairs

1. Paris Agreement

Context:

U.S. President Donald Trump’s administration announced the United States’ intention to withdraw from the Paris climate accord for a second time, a defiant rejection of global efforts to combat planetary warming as catastrophic weather events intensify worldwide.

Paris Agreement COP 21

It is a multilateral agreement under the United Nations Framework Convention on Climate Change UNFCCC to reduce and mitigate greenhouse gas emissions Adopted in December 2015 at COP 21 in Paris and signed by 196 countries

• Main Objectives
  • Limit global warming to well below 2C above preindustrial levels and pursue efforts to limit it to 15C.
  • Achieve a climate neutral world by midcentury and peak greenhouse gas emissions as soon as possible.
  • Mobilize finance flows to least developed countries and other vulnerable nations to adapt to climate impacts and mobilize support for technology transfer to developing countries from developed countries.

Nationally Determined Contributions NDCs

• Countries set voluntary goals for emission reduction submitted every five years to the UNFCCC.
• NDCs guarantee equity and the countries receive technical and financial assistance in dealing with climate change.
• The commitments are not legally enforceable they allow flexibility and cooperation.

Indias Role and Measures

• Commitments at COP 21
  • Emissions intensity per unit GDP must be reduced to 3335 of 2005 levels.
  • Non fossil fuel sources generate 40 percent of installed capacities.
• Renewable Energy
  • Produce 175 GW of Renewable Energy by 2022.
  • Plant forest cover as an absorptive capacity for 25 billion metric tonnes of Carbon Dioxide every year.
  • Enhance taxes and abolish subsidies on the use of fossil fuel to curb the usage of fossil fuels.

Emissions in India

• India emits at a below global average per capita with 60.
• Emissions increased by 14 in 2019 which is the lowest in comparison to the average increase of 33 per annum over the last decade.

India’s Initiatives

• National Solar Mission Promotion of renewable energy for sustainable growth.
• Bharat Stage VI Norms Stiffening vehicle emission standards.
• National Wind Solar Hybrid Policy 2018
• Hybrid energy projects for optimum resource utilization.
• This has culminated in 164 million kilograms lesser emissions of CO.

Core Elements of the Paris Agreement

• Financial Agreement
  • Developed countries agreed upon 100 billion annually to be provided to developing countries for adaptation and mitigation.
  • G7 countries committed 420 million to Climate Risk Insurance.
  • In addition they established the initiative of Climate Risk and Early Warning Systems CREWS.
  • 3 billion was pledged to the Green Climate Fund.

• Article 6
  • Guarantees carbon trading and a universal carbon price.
  • Allows for the use of reductions by another country in their own NDCs.

• Paris Agreement vs Kyoto Protocol
  • Paris Agreement: No differentiation is made between the developing and the developed world based on shared responsibilities
  • Kyoto Protocol: Differentiated on the basis of Annex 1 developed and nonAnnex 1 developing nations

• Global Status After 5 Years
  • Major emitters include China 30 the US 135 and the EU 87.
  • Only a few nations including Bhutan Costa Rica and Gambia are following Paris targets.
  • Reductions in emissions have not yet become adequate enough to reach 15C or even 2C levels.

Climate Ambition Summit 2020

• It was hosted by the UN France the UK Italy and Chile to commemorate the 5th anniversary of the Paris Agreement.
• The focus was on strengthening commitments under the three pillars mitigation adaptation and finance.
• It aimed at accelerating systemic changes to combat climate challenges.

What’s New?

COP29: Takeaways and Stand of India

2. World Economic Forum (WEF)

Context:

World Economic Forum (WEF) is hosting its Annual Meeting from 20–24 January 2025 Davos-Klosters, Switzerland.

Theme: WEF 2025’s theme is “Collaboration for the Intelligent Age,” highlighting the importance of partnerships for a future driven by sustainable innovation and technological advancements.

World Economic Forum (WEF)

About

WEF is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas.

• Headquarter
  • Geneva, Switzerland.
• Established
  • 24 January, 1971
• Background
  • In 1971, German professor with mechanical engineering as a background and having a Master’s in Public Administration from Harvard formed the WEF as the European Management Forum by Klaus Schwab, who coined the term “stakeholder capitalism.”.
• Note
  • The European Management Forum was the first non-governmental institution to initiate a partnership with China’s economic development commissions, spurring economic reform policies in China.

Evolution

In 1973 events such as the collapse of the Bretton Woods fixed exchange rate mechanism and Arab-Israeli War made Annual Meeting expand its focus in addition to management issues to economic and social issues.

• After two years, the organization instituted the membership system of ‘the 1,000 leading companies of the world.
• In 1987, the European Management Forum emerged officially to be known as the World Economic Forum, to extend its horizon and provide a facility for dialogue.
• Officially recognized as an International Organization in 2015.
• Financed
  • It is normally financed by sponsor corporations whose annual turnover is more than USD 5 billion.

Diplomatic Moments of WEF

• Korean Diplomacy
  • North and South Korea held their first ministerial-level talks in Davos.
• German Reunification (1989)
  • The East German Prime Minister and the German Chancellor met at WEF for reunification talks.
• South African Milestone (1992)
  • South African President de Klerk, Nelson Mandela, and Zulu prince Mangosuthu Buthelezi made their first joint appearance outside South Africa, marking a milestone in the political transition of the country.
• G20 Genesis(1998)
  • WEF insisted on the inclusion of major developing countries. Thus, the idea of G20 was born, but initially, it was restricted to finance ministers.
  • G20, which was born out of the WEF talks, eventually took the form of a summit.
• Major Reports:
  • The WEF comes out regularly with globally recognized reports that include the Global Competitiveness Report and the Global Gender Gap Report, Energy Transition Index, Global Risk Report, and the Global Travel and Tourism Report.

India’s Presence at World Economic Forum (WEF) 2025

• Focus Areas
  • Reinventing growth, Investing in People, Restoring trust, Industries in the Intelligent Age, and Protecting the Planet.
• Country Leadership
  • Senior ministers: Shri Ashwini Vaishnaw, Shri CR Patil, Shri K. Rammohan Naidu, Shri Chirag Paswan, Shri Jayant Chaudhary.
• State Engagement:
  • Leaders from Andhra Pradesh, Maharashtra, Telangana, Tamil Nadu, Uttar Pradesh, and Kerala.
• Dialogue and Conversations
  • Panel sessions on sustainability, economic collaborations, innovation, AI, and supply chain diversification.
  • More than 65 Indian business representatives attending.
• Economic growth and FDI
  • Surpassed US$1 trillion in FDI inflows since April 2000
  • FDI in the first half fiscal year up by almost 26% to US $42.1bn.

Source: PIB

3. India-Middle East-Europe Economic Corridor (IMEC)

Scope and Design

It is a network of multimodal transportation, connecting rail, ship-to-rail, and roads.
Besides, it is going to house electricity cables, hydrogen pipelines, and high-speed data cables.
It contains two major corridors:

• East Corridor: Connects India to the Arabian Gulf.
• Northern Corridor: Routes the Arabian Gulf to Europe.

Part and Participant countries

• Including India, the US, Saudi Arabia, UAE, EU, Italy, France, and Germany.
  • Hub Ports India: Mundra, Kandla, and Jawaharlal Nehru Port Trust.
  • Middle East Ports: Fujairah, Jebel Ali, Abu Dhabi, Dammam, Ras Al Khair ports and port of Haifa of Israel.
  • Piraeus in Greece and Messina in Marseille.

Objectives:

• There is establishment of complete networking for trade and transportation between India, Middle East, and Europe.
• Improve trade efficiency, reduce costs, generate employment, and lower GHG emissions.
• Change connectivity between Asia, Europe, and the Middle East to promote trade and cooperation.

Importance of IMEC In the Context of Geopolitical Effects

• Against China’s Belt and Road Initiative (BRI)
  • They present an alternative to the BRI, thereby denying China dominance over a full-fledged region.
• Connecting Through Civilizations
  • It fosters intercontinental cooperation between Asia, Europe, and the Middle East.
• By-Passing Pakistan
  • It bypasses the Pakistan blockade on India’s direct land route to the West.
• Strategic Gulf Cooperation:
  • It further enhances India’s political and strategic engagement with the Gulf states.
• Peace and Stability:
  • It is likely to increase intra-regional connectivity and may bring down political tensions within the Arabian Peninsula.

Economic Benefits Trade Enhancement

• Transit Time Reduces
  • So the trade to and from Europe would become 40% faster as if done over Suez Canal. Industrial Growth
• Infrastructures in Transporting
  • Improve on the infrastructures in transporting the raw materials and other commodities into sources.
• Job Generation
  • This enhances job development in infrastructures, logistic industry, and all trading departments.
• Security for Energy Products
  • There would be steady and consistent flow of products for the supply of energy resources.
• SEZ Development
  • Develop SEZs en-route so that overseas investments can arrive en-route.

 Challenges to IMEC

• Logistics and Infrastructure
  • Complex Connectivity: Logistic coordination of transport across country boundaries by rail and road and sea is complex when a route needs interchange with multiple nations.
  • Infrastructure Gaps: There are meaningful railway links only in the Middle East. Highly heavy construction work is going on over there.
  • There are several stakeholders involved: Policies, regulations, and interests have to be coordinated among participating countries, which is a difficult task.
• Opposition
  • There will be opposition also from the routes which are recently being proposed as present routes would go under threat in terms of revenue that is generated by Egypt from its Suez Canal.
• Financial Restraint
  • Heavy Expenditure
    • Construction cost per route is in the region of USD 3–8 billion
      Means of Finance.
    • The challenge has been how to raise enough finances.

Way Forward

• Geopolitical Equilibrium
  • Coordination as well as cooperation among the participants.
• Sustainability Thematic Focus
  • Make the construction a green practices.
• Sound Security Arrangement
  • Protect the cargo and infrastructure from the threat of piracy and theft.

National Affairs

1. De-Notified, Nomadic and Semi-Nomadic Tribes of India

Context:

The Anthropological Survey of India and Tribal Research Institutes have conducted a comprehensive ethnographic study of 268 denotified, semi-nomadic, and nomadic tribes in India. The study, commissioned by a NITI Aayog panel, recommended the inclusion of 179 of these communities in the Scheduled Castes, Scheduled Tribes, and Other Backward Classes lists of 26 states and union territories.

What are De-Notified, Nomadic and Semi-Nomadic Tribes of India?

2. Dam Safety Act of 2021

Context:

The Supreme Court asked the States of Tamil Nadu and Kerala to address it on whether the supervisory committee formed by the court would be more effective in taking care of the 129-year-old Mullaperiyar dam or the job must be given to a statutory committee envisaged under the new Dam Safety Act of 2021.

Mullaperiyar Dam

Mullaperiyar Dam is a masonry gravity dam constructed on the Periyar River in Kerala, India. The dam was constructed between 1887 and 1895 by John Pennycuick, and it lies 150km south east of Kochi and 200km north east of Trivandrum. The catchment area of the dam is located entirely in Kerala and not an inter-State river. It is operated and maintained by Tamil Nadu. The water level hit 142 feet for the first time in 35 years in 2014 and again topped its maximum limit in 2018. According to the report of UNU-INWEH, published in 2021, the dam is seismically active with significant structural flaws and places 3.5 million people in danger if it collapses.

Dam Safety Act of 2021

3. Custodial Death

Context:

A protest erupted in Uttar Pradesh’s Sambhal district, with hundreds of people gheraoing the Raisatti police outpost under the Nakhas police station limits demanding justice over the alleged custodial death of a 35-year-old man.

Custodial Death in India

Definition: Death of a person in the custody of law enforcement or correctional facilities, caused by excessive force, neglect, abuse, or other factors.

Custodial Violence: Defined by the Law Commission of India as crimes committed by public servants against detained or arrested individuals. Statistics (2017-2022).

Gradual increase in custodial deaths

• 2017-18: 146 cases.
• 2021-22: 175 cases.

State-wise Data

• Maximum cases: Gujarat (80), followed by Maharashtra (76), Uttar Pradesh (41), Tamil Nadu (40), and Bihar (38).

NHRC Interventions

• Awarded monetary relief in 201 cases.
• Recommended disciplinary action in one case.

Possible Reasons for Custodial Deaths

• Absence of Legislation.
• India lacks an anti-torture law and has not criminalized custodial violence effectively.

Institutional Challenges

• Prisons suffer from
  • Opaqueness and lack of transparency.
  • Overcrowding, poor infrastructure, and acute manpower shortages.
  • Insufficient safeguards to prevent harm.
• Excessive Force
  • The police tend to use undue force, targeting the vulnerable groups.
• Judicial Inefficiency
  • Prolonged and expensive judicial procedures discourage the weak from filing complaints.
• Non-compliance with International Standards
  • India signed the UN Convention Against Torture in 1997 but has not ratified it. Hence, it did not enact the relevant laws and measures.

Other Contributing Factors

• Neglect of medical care or insufficient health care in detention.
• Untrained police officers with minimal accountability.
• Detention centers with low standards.

Legal Provisions

Constitutional Safeguards

• Article 21: Protects life and liberty and shields against torture. .
• Article 22: Rights concerning arrest, detention, and legal counsel. .

State and Central Governments’ Responsibilities

• State Government: Police and public order.
• Central Government: Issues advisory and enactments, such as the Protection of Human Rights Act, 1993, which establishes NHRC and State Human Rights Commissions.

Criminal Procedure Code (CrPC)

• Section 41 (Amended) : It also provides for safety measures during arrest and detention process, which involves transparency and representation by a legal practitioner.

Indian Penal Code (IPC)

• Sections 330, 331: Punishment for causing torture or grievous hurt to extract confession.
• Sections 302, 304, 304A, 306: Death caused by custodial torture.

Indian Evidence Act, 1872

• Section 25: Confession before police is not admissible.
• Section 26: Confession before police is admissible only if made before Magistrate.

Indian Police Act, 1861

• Sections 7, 29: Punishment or suspension for dereliction of duty of negligent officers.

Way Forward

Legislative and Institutional Reforms

• Anti-Torture Law: A full-fledged anti-torture law should be enacted as envisaged by the international standards.
• Prison Reforms: Betterment of conditions; reduction in overcrowding and bringing transparency into prison affairs.

Law Enforcement Training

• Compulsory training modules on human rights and alternative non-lethal techniques.

Accountability and Checks and Balances –

• Set up independent agencies to investigate custodial deaths and bring the perpetrators to book.

Judicial Effectiveness

• Reforms judicial procedures to deliver expeditious and low-cost justice to the underprivileged.

International Obligations

• Sign and implement the UN Convention Against Torture; domestic laws are thereby enacted in compliance with its provisions.

Health Care Services in Detention

• Provide adequate health care to the detainees and treat the underlying sicknesses.

4. The Uniform Civil Code (UCC)

Context:

The Uttarakhand Cabinet approved the rules for the Uniform Civil Code (UCC) at its meeting chaired by Chief Minister Pushkar Singh Dhami.

The Uniform Civil Code (UCC) of India

UCC is a homogeneous set of legislation that governs personal matters among citizens of the country, in this case Indians, such as marriage, divorce, adoption, inheritance, and succession.

It is a provision of Article 44 of the Indian Constitution wherein it is stated that it is the Directive Principle of State Policy. The implementation of UCC had been a question of debate since decades.

Constitutional History and Leading Judicial Pronouncements

• Debates of Initial Stages
  • The UCC was included by the Sub-Committee on Fundamental Rights in their draft.
• Division of Rights
  • UCC was divided to the section that became non-justiciable by M.R. Masani, Hansa Mehta and Amrit Kaur.
• Debates in the Constituent Assembly
  • The Draft Article 35 later transformed into Article 44 by including UCC into the Directive Principles thereby making it not mandatory.
• Advocates for UCC for National Unity and Secularism
  • K.M. Munshi asks for the protests when the existing common criminal code has not invited protests.

Key Judicial Pronouncements on UCC

• Shah Bano Case
  • Supported a Muslim woman’s right to maintenance by connecting it to national integration.
• Jorden Diengdeh Case
  • Underlined contradictions in the laws relating to divorce and supported UCC for uniformity of laws.
• Sarla Mudgal Case
  • Highly supportive of UCC, especially for the majority Hindu population.
• Pannalal Bansilal Pitti Case
  • Recognized India’s pluralism and advocated for gradual introduction of UCC.
• Lily Thomas Case
  • Stressed the importance of UCC with regard to succession.
• John Vallamattom Case
  • Struck down discriminatory provisions in Christian personal law, thereby reaffirming the need for UCC.
• Shabnam Hashmi Case
  • Connected Juvenile Justice Act to UCC and spoke about the importance of the same laws.
• Shayara Bano Case
  • Relates to triple talaq and brings the debate back on the topic of UCC but in relation to the question of human rights.

Cases Arguing for UCC

• Equality Under the Law
  • The UCC will provide the equal rights of everyone under one law, according to Article 14 of the Indian Constitution.
• Empowering Women
  • Triple talaq, unequal inheritance rights, and child marriage could be issues such a law might strike at the root of.
• Facilitating the Legal System
  • Personal laws would become smoother and easier for courts to administer and for citizens to comprehend.
• National Integration
  • The new UCC law could work towards national integration as it would teach the lessons of citizenship as opposed to religious identity.
• Modernization and Social Reform
  • A UCC could be an opportunity to reform outdated practices and align personal laws with contemporary social values.
• International Alignment
  • Adopting a UCC could align India with international human rights standards, potentially improving its standing on global indices.

Arguments Against the UCC

• Cultural Preservation
  • A UCC could erode India’s diverse heritage.
• Religious Liberty
  • It has been argued it could violate religious liberty under Article 25 of the Constitution
• Minority Issues
  • It’s believed to disproportionately affect some communities.

India’s UCC Challenges and Solutions

• Minority
  • Minority population perceives UCC is likely to cause dilution in their cultural identities.
• Implementation
  • A law satisfying all cultures of a divided nation is unthinkable.
• Federalism concerns
  • The nationwide UCC implementation would undermine the federal structure of India.
• Economic concerns
  • A UCC implementation would require a sea change in the legal system, and such a process may be too costly.

Solutions

• Inclusive Dialogue
  • A consensus built by consulting with different stakeholders.
• Phased Implementation
  • Gradual change with a focus on broad agreement areas first and more contentious issues.
• Constitutional Safeguards
  • Protection of minority rights and cultural practices.
• Evidence-Based Reform
  • State-level initiatives on personal law reforms are studied.

5. PM Internship Scheme

Context:

The PM Internship Scheme, which has fallen short of its target despite a positive response to the pilot phase, may draft in millions of small businesses to help boost employment in the country.

PM Internship Scheme

7. Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)

Context:

The third batch of 18 cheetahs, scheduled to be relocated from South Africa to Madhya Pradesh in Feb 2025, may take more time. The project is stalled due to pending import permission from CITES, which is preventing the next phase of the reintroduction effort.

Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)

An agreement among governments that oversees international trade of endangered species is the Convention on International Trade in Endangered Species of Wild Fauna and Flora, otherwise known as CITES.

According to CITES, the main aim is the survival of endangered species in their natural habitats, undeterred by man’s interference.

• What does CITES do?
  • It regulates the international trade of endangered species, promotes cooperation among member countries, ensures sustainability, and bans or regulates the international trade of threatened species.
• How does CITES work?
  • Lists species in Appendices based on the level of threat posed by international trade.
  • Holds meetings of the Conference of the Parties (CoP) every three years to review implementation and consider amendments.
  • Uses the CITES Standing Committee for guidance, oversight in implementation, and compliance matters management.
• What are the Appendices?
  • Appendix I: Contains species threatened most by international trade.
  • Appendix II: Includes species that are not as threatened as those in Appendix I by international trade.
  • Appendix III: Includes species to be added to or removed from the Appendix by individual parties.
• CITES also known as?
  • Also known as the Washington Convention.

Project Cheetah

8. India, France to jointly Track Indian Ocean Region Threats

Context:

India and France reiterated, after another round of maritime cooperation dialogue, their strong commitment to upholding international law, supporting multilateralism, including through regional organisations, respect for sovereignty and territorial integrity, and protecting freedom of navigation.

Indian Ocean Region

Banking/Finance

1. Private Capital Expenditure vs Public Capital Expenditure

Private Capital Expenditure

Private capital expenditure, or Capex, is the money a private sector organization spends on long-term assets. The assets can include buildings, vehicles, equipment, land, and intellectual property.

Why is private capital expenditure important?

• Economic growth:
  • Private Capex can lead to sustained economic growth by increasing demand and income over time.
• Macroeconomic stability:
  • Capex can be a tool for countercyclical fiscal policy and macroeconomic stabilization.
• Revenue generation:
  • Capex can build long-term assets that generate revenues for many years.
• Examples of private capital expenditure
  • Buying a new business
  • Research and development (R&D) expenses
  • Buying land and buildings
  • Buying equipment, vehicles, and work tools
  • Buying intellectual property, such as patents and copyrights
  • Fitting out buildings with furniture and infrastructure

Public Capital Expenditure

Public capital expenditure is money spent by the government to acquire or improve long-term assets. Some of these assets include property, plant, and equipment, while others are infrastructures.

What are examples of public capital expenditure?

• Infrastructure: Road, bridges, dams, airports, and seaports
• Education: Schools and colleges
• Healthcare: Hospitals
• Defense: Procurement of weapons and weapon systems
• Technology: Computers, servers, and other technology
• Land: Purchased land
• Machinery: Purchase of machinery and equipment
• Loans: Loans provided by the government to the states, PSUs, and financial institutions

Why is public capital expenditure crucial?

• Public capital expenditure aids the government in acquiring assets that generate future cash flows.
• Public capital expenditure is crucial for economic development since it enables the government to offer infrastructure services needed by companies and families.

Capital Expenditure CapEx

2. RBIs Revised Norms for ARCs

Key Takeaways in Settlement Norms

• Process for Settlement Approval
  • Dues above 1 crore can now be settled by following a boardapproved policy
  • Decisions regarding such settlement can be given by a committee of the board itself instead of involving the whole board which simplifies the procedure.

• Composition of Committee
  • The committee shall be headed by an independent director and shall consist of at least
  • Two independent directors including the chair or,
  • Onethird of the boards total strength or three directors whichever is higher.

• Independent Advisory Committee IAC
  • The proposals for settlement shall be evaluated by an IAC consisting of experts in technical financial or legal matters
  • The IAC will suggest alternatives for recovery and the board committee will discuss these before making a decision to settle.

• Settlement Criteria
  • Settlements will only be conducted after all options for recovery have been considered and settlement is deemed the best alternative available.
  • This supersedes the previous condition to exhaust all steps of recovery before settling.

• Special Provisions for Small Loans For Dues Less than 1 Crore
  • Settlement can be sanctioned by a person who was not concerned in the acquisition of financial assets.
  • Earlier proposals for dues below 1 crore were required to be studied by the IAC.
• Prior Monitoring and Reporting Quarterly Reporting
  • ARCs are mandated to present quarterly reports on resolution of accounts to the board or a panel of the board.

Purposes of the Amendments

• Valuation Transparency
  • The NPV of settlements should not be less than the realisable value of securities.
  • Any significant difference between the valuation at the time of acquisition of assets and the realisable value at the time of settlement must be supported with reasons.

• Objective of the Changes
  • The new rules seek to make settlement easier especially for small loans without being one size fits all.
  • The new rules ensure a balance between ease of resolution and accountability in settlement processes.

RBI Guidelines For Asset Reconstruction Companies

3. SEBI’s Proposed Revisions to the Social Stock Exchange (SSE) Framework

Key Objectives of the Proposal

• Enhance transparency and accountability of Not-for-Profit Organizations (NPOs) and social enterprises listed on SSEs.
• Better align the SSE framework with the operational needs of NPOs and social enterprises.
• Improve governance, financial reporting, and the measurement of social impact.

Social Stock Exchange (SSE)

A Social Stock Exchange (SSE) is a controlled platform that permits social enterprises to attract public funds. SSEs are an addition to the already existing stock exchanges.

• What does an SSE do?
  • SSEs facilitate the raising of funds by social enterprises for social causes.
  • SSEs offer a clear and controlled atmosphere for raising money by social enterprises.
  • SSEs facilitate investors to invest in areas they believe in and can make some financial gains in return.
• Who can employ an SSE?
  • For-profit social enterprises (FPSEs), Not-for-profit organizations (NPOs), and Non-government organizations (NGOs).
• How does an SSE work?
  • Social enterprises can be listed on an SSE and, similar to a mutual fund, raise funds as equity, debt or units.
  • Social enterprises have to disclose their social impact.
  • Investors can engage with causes they believe in while potentially generating financial returns.
• What are the advantages of an SSE?
  • SSEs create a marketplace in which social impact is valued equally with financial performance.
  • SSEs help stimulate the ecosystem of outcome-driven philanthropy.

Proposed Changes to the SSE Framework

• Expanded Disclosure Requirements
  • Welfare and Environmental Activities:
    NPOs must disclose welfare activities for disadvantaged groups, vocational/skill training initiatives, and environmental conservation projects.
  • Governance and Financial Details:
    More specific reporting on governance practices, financial performance, and utilization of funds.
  • Social Impact Focus:
    Detailed disclosures on the social impact achieved, including metrics and outcomes.
• Legal Forms of NPOs
  • SEBI recommends including the following legal forms for NPO registration:
    • Trusts.
    • Charitable societies.
    • Companies registered under Section 25 of the Companies Act, 1956 (now Section 8 under the Companies Act, 2013).
• Reporting Requirements
  • Annual Disclosures:
    NPOs must submit annual disclosures within 60 days of the financial year’s close.
  • Financial and Non-Financial Reporting:
    Separate categories for financial (e.g., fund utilization) and non-financial (e.g., impact assessments) disclosures with updated reporting timelines.
• Terminology Changes
  • Replace “Social Impact Assessment Firm” with “Social Impact Assessment Organization” to reflect a broader scope of entities involved in impact evaluation.
• Improving SSE Operations
  • SEBI emphasizes operational adjustments to better serve the unique needs of NPOs and social enterprises, ensuring the framework is user-friendly and practical.

Current Status of SSEs

• As of December 2024:
  • 111 NPOs are registered on SSE platforms at the NSE and BSE.
  • ₹22 crore has been raised by 10 NPOs through Zero Coupon Zero Principal (ZCZP) instruments.

Expected Impact of the Revisions

• Transparency: Improved disclosures will enhance stakeholder confidence in the activities and outcomes of listed NPOs and social enterprises.
• Efficiency: Updated timelines and clear reporting categories will streamline compliance.
• Inclusivity: Expanding legal forms will encourage more organizations to participate in the SSE framework.
• Accountability: Emphasis on social impact ensures that funds are utilized effectively for intended purposes.

Economy

1. Purchasing Power Parity (PPP)

Context:

• India’s share of global consumption at purchasing power parity (PPP) is expected to rise to 16% by 2050, from:
  • 4% in 1997
  • 9% in 2023
• North America will lead with a slightly higher share of 17% in 2050.

Purchasing Power Parity (PPP)

Definition and Concept

Purchasing Power Parity PPP is a theory that asserts that currencies are in equilibrium if their purchasing power is equal in two different countries.
The theory posits that the value of a currency should be determined by the price ratio of a basket of consumer goods in both nations.
Law of One Price is the foundation of PPP that shows excluding transportation costs similar goods must have the same price in other countries when expressed in a common currency.

PPP Formula

The basic formula of PPP is given by
( S = \frac{P1}{P2} )

Where,

• S Exchange rate between two currencies
• P1 Price of the product in currency 1
• P2 Price of the same product in currency 2

This enables the comparison of the value of currencies by the purchasing power of products in each country.

Versions of PPP

• Absolute PPP: Focuses on the leveling of prices across nations.
• Relative PPP: Focuses on changes in exchange rates due to price differences particularly driven by inflation rates.

Significance of PPP

• Comparison of Purchasing Power PPP enables the comparison of the purchasing power of various currencies, thus making international comparisons more accurate.
• Economic Analysis
  • PPP is used to compare the standard of living and productive capacity across nations.
• Adjusting for Price Differences
  • Helps normalize comparisons by accounting for price level variations across countries.

International Comparison Program ICP

The ICP managed by the World Bank is an initiative in comparing price levels and computing PPPs for over 170 countries.

• Key objectives
  • Generate PPP values and Price Level Indices PLIs
    • To generate PPP values and Price Level Indices PLIs to enable crosscountry comparisons of prices.
  • Converting GDP
    • Converting GDP and spending data into a common currency using PPP to make better comparisons across the countries
  • Price Level Indices
    • PLIs Measure and compare the relative cost of goods showing variations across regions and time

India Rankings in Global PPP

• India stands as the third-largest economy from the PPP account, contributing considerable expenditure and generating wealth globally.
• Gross Fixed Capital Formation GFCF in India contributes to GDP ranking second in growth in emerging economies in terms of PPP.
• India has a 2083 portion of world GDP based on PPP just behind China 5076.

Challenges and Issues with PPP

• Product Basket Variation
  • The PPP exchange rate may change based on the commodities taken into the basket being compared.
• Transport and Tariff Costs
  • Import duties and shipping costs may lead to disparity between domestic price and international price.
• Tax Differences
  • Different tax rates such as VAT may result in price differences among countries.
• Market Distortions
  • Companies may engage in price gouging because of market monopolies or cartels resulting in different PPP values.

Agriculture

1. National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds)

Context:

The Union agriculture ministry has launched its first-ever survey to assess edible oil consumption patterns in India, aiming to effectively implement the new Mission on Edible Oils-Oilseeds (NMEO-Oilseeds).

National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds)

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds), a landmark initiative aimed at boosting domestic oilseed production and achieving self-reliance (Atmanirbhar Bharat) in edible oils. 

• Timeline: Seven years (2024-25 to 2030-31).
• Budget: ₹10,103 crore.
• Objective: Boost domestic oilseed production and reduce dependence on imports to achieve Atmanirbhar Bharat in edible oils.

Recent Update

Edible Oil Consumption Survey: A Strategic Initiative by the Union Agriculture Ministry

Overview of the Survey

• Purpose: Assess edible oil consumption patterns to guide the effective implementation of the National Mission on Edible Oils-Oilseeds (NMEO-Oilseeds).
• Duration: A 45-day initiative, running from January 9 to February 23, 2025.
• Rationale: India lacks updated data on edible oil consumption despite being the world’s largest consumer and importer of edible oils.

Mission Objectives:

• NMEO-Oilseeds, with a ₹10,103 crore financial outlay, aims to increase domestic oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes (2030-31).
• Reduce dependence on edible oil imports, which currently meet 55-60% of demand.

Focus Areas

• Primary Crops: Rapeseed-Mustard, Groundnut, Soybean, Sunflower, and Sesamum.
• Secondary Sources: Cottonseed, Rice Bran, and Tree Borne Oils (TBOs).
• Target: Increase primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31.
• Edible Oil Goal: Achieve 25.45 million tonnes of domestic edible oil production, fulfilling 72% of the projected requirement.

Strategy Points

• HighYielding Seeds
  • Promote seed varieties with more oil content and utilize genome editing and advanced technology in the globe.
  • Ensure 65 hubs and 50 storage units come up in public sector.
• Scale up Cultivation
  • Increase oil seed cultivation on Rice and Potato follow lands by addition of 40 lakh hectares.
  • Intensify intercropping and diversification for productivity gain.
• Infrastructure Development
  • Over 600 Value Chain Clusters in 347 districts over 10 lakh hectares annually.
  • Clusters to be managed by FPOs cooperatives and private .public entities
• Support for Post Harvest Units
  • Upgrade postharvest infrastructure for better recovery from cottonseed rice bran corn oil and TBOs.
• 5 Digital Enablement
  • Launch the SATHI portal for a 5 year rolling seed plan enabling states to collaborate with seedproducing agencies.
• Farmer Empowerment
  • Training farmers in Good Agricultural Practices GAP and pest weather management.
  • Remunerative price through MSP will be assured to farmers under programmes like PM AASHA etc.
• Consumer Education
  • Campaigns of IEC for bringing dietary guidelines towards healthier consumption are developed.

Importances and Incentives

• Economic Impact
  • Bring down Indias dependence on importing edible oil.
  • Save foreign exchange and increase farmers’ earnings.
• Crop Development
  • Productivity by better seeds and higher cultivation.
  • Agriculture would be sustained by reduced water usage and soil health improvement.
• Environmental Benefits
  • Better fallow land usage and lower environmental footprint.
• Competitiveness at the Global Level
  • Strengthen India as an important player in the edible oils market.

Background Context

• India imports over half of its edible oil requirement which means it relies more on other countries like Indonesia Malaysia and Ukraine.
• Previous initiatives included the National Mission on Edible Oils Oil Palm NMEOOP and 20 import duty on edible oils to counter this dependency.
• NMEO Oilseeds is a transformative mission to transform India into becoming self-sufficient in edible oil production.
• To be achieved with the harnessing of state-of-the-art technologies in empowering farmers by practicing sustainable agricultural practices.
• It is landmark towards the goal in Vision of Atmanirbhar Bharat while achieving a robust edible oil sector self-sufficiency.

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