Daily Current Affairs
30 November, 2024
National Affairs
1. India drops two places but remains among top 10 climate performers: Report
India’s Climate Change Actions Rankings
- India has ranked 10th on the Climate Change Performance Index (CCPI 2025) which have over 60 countries listed for climate change efforts.
- The report is released at the annual UN climate conference and the first three places empty, followed by Denmark and the Netherlands.
Key Findings
- The largest two emitters are China and the U.S., remain very low at 55th and 57th place, respectively.
- India’s per capita emissions shows at 2.9 tons of CO2 equivalent (tCO2e), far below the global average of 6.6 tCO2e.
- The country has made remarkable progress in renewable energy policy, specially with large-scale solar power projects and the launch of the Rooftop Solar Scheme.
- Despite these positive developments, India remains heavily reliant on coal.
- The first three places are empty, as no country performed well enough across all index categories to achieve an overall “very high” rating.
- The four lowest-ranked countries in the CCPI are Iran (67th), Saudi Arabia (66th), the United Arab Emirates (65th), and Russia (64th).
Climate Change Performance Index (CCPI)
Climate Change Performance Index (CCPI) 2025 report is released by think tanks Germanwatch, New Climate Institute, and Climate Action Network International.
About CCPI
- It basically monitors the progress of the world’s largest emitters in terms of global greenhouse gas (GHG) Emissions, Renewable Energy, Energy Use and Climate Policy.
- 63 countries and the European Union are listed inCCPI.
2. Biomedical Waste Management in India: A Historical Background
Historical Background:
- HIV Epidemic in 1983 and “Syringe Tide” in 1987 emphasized the dangers of careless biomedical waste disposal.
- The first case of HIV in India in 1986 and the absence of biomedical waste legislation exposed gaps in waste management.
Global and National Responses:
- USA: Medical Waste Tracking Act of 1988 categorized waste from hospitals as hazardous and obliged them to follow systematic guidelines for handling and disposal.
- India: Supreme Court in Dr. B.L. Wadehra vs. Union of India (1996) condemned the waste management system of Delhi, which prompted a national response.
- Biomedical Waste (Management and Handling) Rules, 1998 declared biomedical waste as hazardous and empowered the pollution control boards.
Important Features of Biomedical Waste Management in India:
- Segregation of waste with color-coding is compulsory.
- Treatment of waste by incineration, autoclaving, microwaving, chemical disinfection, and deep burial.
- Safety in the workplace for the healthcare worker, provision of PPE, regular training programmes, and immunization against Hepatitis B.
- Mechanisms for monitoring and compliance, mandatory reporting and record-keeping, and common Biomedical Waste Treatment Facilities (CBWTFs) established.
Gaps in Biomedical Waste Management in India:
- Inadequate infrastructure, weak enforcement and compliance, occupational hazards, low public awareness, and ineffectiveness in common treatment facilities.
Way Ahead:
- Strengthen infrastructure in rural areas; implement real-time tracking systems, improve capacity building and occupational safety, encourage technological innovation, and public awareness and community participation.
Banking/Finance
1. RBI Accepts Bids for ₹5,000-Crore Green Sovereign Bonds
- The Reserve Bank of India (RBI) accepted bids for ₹1,502.01 crore at 6.79%, which clearly shows weak demand for green sovereign bonds.
- The remaining portion of the bonds devolved on primary dealers, indicates a lack of interest in eco-friendly projects.
- Despite recent amendments to allow NRIs and foreign portfolio investors to invest in green bonds, there are few interested ones.
- State Bank of India’s green rupee term deposit scheme, with lower interest rates, is not attracting much attention.
Green Bonds and Standard Bonds
- Green bonds, introduced in 2007, are debt instruments which aims to finance projects positively impacting the climate and environment.
- The issuers can be countries, companies, and multilateral organizations as well.
- Examples of green projects include renewable energy, clean transportation, and green buildings.
- Issuers must provide information about the project and its expected climate and environmental impacts.
- Sovereign green bonds can benefit the Indian economy by promoting environment-friendly public sector projects and achieving government targets like 175 gigawatt of renewable energy capacity by 2022 and net zero carbon emissions by 2070.
2. Fiscal Deficit Hits 46.5% of FY25BE
- The central government’s fiscal deficit reached to 46.5% of the annual target, which is 1.5% higher as compared to 45% a year ago.
- Revenue expenditure rose for a third consecutive month through October, while net tax mop-up growth remained subdued.
- Experts predicted the government can contain its 2024-25 fiscal gap at 4.9% of gross domestic product.
Revenue Expenditure
- Revenue expenditures are short-term expenses used in the current period or within a year.
- They cover ongoing operational expenses (OPEX) of running a business.
- Revenue expenditures include repairs, routine maintenance, repainting, and renewal costs.
- They are related to the government’s day-to-day operations and do not develop physical or financial assets.
Types of Revenue Expenditures
- Plan and Non-plan expenditures are primarily government revenue expenditures, but also include capital spending.
- Non-Plan expenditures account for the majority of the government’s total spending.
Classification of Government Expenditures
- The government of India announced in 2016 that the classification of plan expenditure and non-plan expenditure would be abolished.
- The expenditures of the government will be reclassified as Capital and Revenue spending.
- The new capital and revenue spending classifications will establish a clear and effective link between government earnings, expenditures, and outcomes.
About: Fiscal Deficit
3. Stricter adherence to Sa-Dhan guidelines leads to better discipline in microfinance sector
Microfinance Portfolio Drops in Sa-Dhan
- The microfinance portfolio of lenders in Sa-Dhan has recently dropped significantly from ₹4.43 lakh crore in March 2024 to ₹4.04 lakh crore in October 2024.
- The reason of drop is due to a reduction in incremental disbursements and unwinding of borrower leverage.
- Sa-Dhan issued ‘Seven Sankalps‘ in July 2024, providing additional guidelines to its member institutions.
- The Sankalps also prescribe not lending to NPA (non-performing accounts) with an amount greater than ₹3,000, proper checks on loan utilisation, a mandatory employee bureau check for staff hiring, and insistence on obtaining and providing relieving letters.
Sa-Dhan: Self-Regulatory Organization for Microfinance Institutions
- is appointed by the Reserve Bank of India (RBI).
- Primarily aims to promote inclusive impact finance institutions and support low-income households, especially women.
- Created the Code for Responsible Lending (CRL) to improve lending quality and transparency.
- Developed the Credit Assessment Framework for clients (CAF) in 2022.
- Issued the first Governance Manual for the MFI Board of Directors in 2018.
- Contributes to social development goals.
- Addresses gender issues, focusing on women empowerment.
- Supports global and national interest issues like climate change.
- Has about 220 members working in over 600 districts across 33 states and union territories.
Source: Business Line
4. ‘GST spurring fresh tax terrorism,’ says former CEA Arvind Subramanian
Former Chief Economic Adviser Arvind Subramanian Criticizes GST
- Arvind Subramanian, former Chief Economic Adviser has expressed dissatisfaction with the GST regime’s complex, multiple-rate structure and the rapid rise of “tax terrorism.”
- He also told that an increase in the GST rate, stating that the current GST Council has become a rate cutting committee and exemption granting committee.
- He criticized the GST Council for blaming the GST Council for raising rates, highlighting the political economy dynamic.
GST Implementation and Council Formation
Background and Establishment
- The Constitutional (122nd Amendment) Bill (CAB) was introduced in Parliament to implement GST.
- The CAB was passed by Rajya Sabha and Lok Sabha on 03rd and 08th August, 2016.
- The President assent to the “The Constitution (One Hundred And First Amendment) Act, 2016″ on 8th September, 2016.
5. Commerce Secretary visits Norway to discuss early implementation of trade pact with EFTA bloc
India-EFTA Free Trade Agreement Implementation in Norway
- Commerce Secretary Sunil Barthwal visited Norway to discuss the implementation of the Trade and Economic Partnership Agreement (TEPA).
- The agreement, signed in March, is part of the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland.
- The visit aimed to unlock a large market for Indian exports and push for early implementation of $100 billion investment.
- India’s seafood exports have doubled in value over the past decade, making it the EU’s second-largest seafood market.
- India is also the EU’s second-largest shrimp supplier, contributing 12% of the EU’s squid imports.
European Free Trade Association (EFTA)
- Intergovernmental organization of Iceland, Liechtenstein, Norway, and Switzerland.
- Established in 1960 to promote free trade and economic integration.
- Main tasks include maintaining and developing the EFTA Convention, managing the EEA Agreement, and developing EFTA’s worldwide network of free trade agreements.
- Mission: Promote free trade and economic integration for the benefit of its four member states and global trading partners.
- Member States: Open, competitive economies committed to progressive liberalization of trade in multinational arena and free trade agreements.
6. India plans to raise FDI limit to 100% in insurance, amend key provisions of 1938 Act
Indian Finance Ministry Proposes Amendments to Insurance Act of 1938
• The Finance Ministry proposes amending the Insurance Act of 1938.
• To increase foreign direct investment (FDI).
• The amendments will promote policyholders’ interests, enhance financial security, facilitate entry of more players, and enhance insurance penetration.
• The requirement of net-owned funds for foreign re-insurers will be reduced from ₹5,000 crore to ₹1,000 crore.
• FDI limit in Indian insurance companies will be hiked from 74% to 100%.
• The Insurance Act of 1938 provides the legislative framework for insurance in India and regulates the relationship between insurers, policyholders, shareholders, and the Insurance Regulatory and Development Authority of India (IRDAI).
India’s FDI
Understanding Foreign Direct Investment (FDI)
• FDI is made by a firm or individual one country into business interests located in another country.
Government Initiatives to Boost FDI
FDI is a major non-debt financial resource for the economic development of India.
• The components of FDI are equity capital, reinvested earnings, and intra-company loans.
• FDI routes include automatic route, government route, and the Foreign Investment Facilitation Portal (FIFP).
• Relaxation of FDI norms across sectors, ‘Make in India’ and ‘Atmanirbhar Bharat’ campaigns, and launch of schemes attracting investments.
• Higher FDI inflows have been possible due to liberal and attractive policy regime, a good business climate, and reduced regulatory framework.
Retaining Growth
• Government policies/decisions are crucial in creating a conducive environment for global investors.
• A sound trade policy and level playing field are necessary for continued foreign investments.
7. RBI to keep repo rate unchanged at meeting next week, chances of rate cut in February increased: Report
• RBI to Continue the Policy Rate After GDP Growth of Q2 FY25 Felt Slowed
• Q2 FY25 growth for GDP comes in at 5.4% YoY; that is from 6.7% YoY in Q1.
• RBI to retain policy rate during its forthcoming policy given slowing GDP growth in Q2 FY25.
RBI to Continue the Policy Rate After GDP Growth of Q2 FY25 Felt Slowed
• Q2 FY25 growth for GDP comes in at 5.4% YoY; that is from 6.7% YoY in Q1.
RBI to retain policy rate during its forthcoming policy given slowing GDP growth in Q2 FY25.
• Concludes that consumption growth had decelerated because urban demand was softer and, consequently, had moderated in leveraged consumption.
• GVA Growth slipped to 5.6% in Q2 after having recorded 6.8% in Q1, marking a sharp deterioration in broad-based economic performance.
• Investment growth remained soft because government capex has tracked lower than last year and private investment remains largely mute.
• It would indicate that the rural demand will rebound during the second half of the fiscal year due to a good performance in agriculture, payment from schemes by the government, and higher expenditure by the government.
Agri Business
1. India needs to hike domestic fertilizer output to offset unstable market: Economist
India’s Agricultural Adaptation to Climate Change Challenges
- Senior Economist of the Food and Agriculture Organization (FAO) Nicholas Sitko said India needs to upscale its own fertiliser production capacity because of unstable conditions prevailing in Ukraine and West Asia.
- Sitko urged India to shift farming systems away from dependence on import of fertilisers and focus its attention on building organic carbon within soil through natural farming practices.
- He stresses that policies must make it possible for women farmers to access insurance, credit, training, input distribution equity, and market access.
- Sitko suggests India can expand its fertiliser production capacity and change its farming systems to reduce dependency on imported fertilisers.
- He suggests capturing carbon in soil by retaining residues and integrating legumes in the system can improve soil nutrients.
2. Fertilizers are source of several diseases; switch to organic farming, says Amit Shah
Union Home and Cooperation Minister Amit Shah Focuses on Health Aspects of Fertilizers
- Chemicals in fertilizers cause health issues like hypertension, diabetes, thyroid, and cancer.
- Organic farming is linked to the health of 140 crore Indians.
- A Memorandum of Understanding (MoU) was signed between the National Co-operative Organics Limited (NCOL) and Uttarakhand Organic Commodity Board (UOCB).
- Shah stresses that it is through organic farming and cooperatives that India will become the largest organic food producing country of the world.
National Cooperative Organics Limited (NCOL) Overview
- Platform that allows Indian farmers to market their organic products.
- Founded under Multi State Cooperative Societies Act, 2002 in 2023.
- Headquartered in Anand, Gujarat.
- Plan to sell organic products inside India and abroad.
- Hands over about 50 percent of the profit to farmer members.
- National Dairy Development Board promotes it.
- Full supply chain of organic product is covered.
- One of the three cooperatives the government established.
Organic Farming
Organic farming also referred to as ecological or biological farming is a way of farm operation that incorporates naturally available, non-synthetic input like compost manure, green manure, and bone meal
Crop rotation, intercropping, and growing companions. Encouragement of biologically controlled pests: promotion of beneficial insects .
Arise in the early 20th century. In a response to increasing rapidly changes in farming system.
