31st October 2024

Article: 31^st October, 2024

Topic: India-Spain Joint Statement

Relevance: GS Paper: 2 – International Relations

Source: PIB

Context

• India had a state visit by the prime minister of Spain.

About

• In Vadodara, Prime Minister Modi and PM Sanchez jointly opened the C-295 Final Assembly Line Plant, which is jointly produced by Tata Advanced Systems Ltd. and Airbus Spain.
• Out of the 40 aircraft that will be produced in India, this plant will introduce the first “Made in India” C295 aircraft in 2026.
• Six of the 16 aircraft that Airbus Spain is shipping to India in “fly-away” condition have already been delivered to the Indian Air Force.
• During the bilateral meeting, India and Spain signed a number of memorandums of understanding (MOUs).
  
  

An Overview of Bilateral Relations Between Spain and India

• In 1956, India and Spain established diplomatic relations.
• Both nations have since participated in high-level visits and discussions to strengthen their political ties.
• Economic Relations: India’s sixth-largest European trading partner is Spain. In 2023, bilateral trade totaled $9.9 billion. During the same period, India’s imports totaled $2.74 billion and its exports totaled $7.17 billion.
• The 1972 Trade and Economic Cooperation Agreement established the India-Spain Joint Commission on Economic Cooperation (JCEC), which has held twelve meetings since then.
• Investment: With a total of US$3.94 billion in FDI as of December 2023, Spain is the 16th largest foreign investor in India.
• Defense: Spain has been a key player in India’s defense modernization and diversification.
• The first Made in India project in the defense aircraft industry is the purchase of 56 C295 aircraft from Airbus Spain.

• With 250,000 Indian visitors visiting Spain annually and 40,000 Spanish tourists visiting India, both directions of travel are expanding.
• The 3rd India- Spain Forum was held in 2023 by the Spain-India Council Foundation, a private non-profit organization that works in tandem with the Spanish Ministry of Foreign Affairs, in association with the Observer Research Foundation (ORF).
• One of the most important instruments for advancing Spain-India bilateral ties is this forum.
• Multilateral Cooperation: To address global issues including climate change, terrorism, and sustainable development, both countries work together in multilateral fora such as the United Nations, G20, and multilateral Solar Alliance (ISA).
• Diaspora: There are about 75,000 Indians living in Spain, mostly in the Canary Islands, Valencia, Madrid, and Catalonia.

Way Ahead

• The developing diplomatic and economic ties between Spain and India have a lot of potential, with commerce, investment, renewable energy, infrastructure, and defense being important areas of collaboration.
• Spain’s proficiency in environmental technology, infrastructure, and renewable energy enhances India’s growing market.
• Foreign direct investment is encouraged by initiatives like “Make in India” and “Digital India,” which foster advantageous conditions for future cooperation.
• The bilateral relationship between Spain and India appears to have a bright future with more cooperation as long as both nations continue to capitalize on their strengths.

Also Read Topics & Concepts:

Prelims Practice Questions

Q. ‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and ___. (UPSC PYQ 2017)

(a) European Union

(b) Gulf Cooperation Council

(c) Organization for Economic Cooperation and Development

(d) Shanghai Cooperation Organization

Ans: a

Explanation

‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and European Union

Mains Model Questions Q. International civil aviation laws provide all countries complete and exclusive sovereignty over the airspace above their territory. What do you understand by ‘airspace’? What are the implications of these laws on the space above this airspace? Discuss the challenges which this pose and suggest ways to contain the threat. (UPSC PYQ 2014)

Introduction:

The area of the atmosphere that a nation controls above its borders, including its territorial waters, is known as airspace. More generally, airspace refers to any particular three-dimensional area of the atmosphere. For many operations, including aviation, national security, weather forecasting, telecommunications, and space research, the idea of airspace is essential. Under the direction of the International Civil Aviation Organization (ICAO), international civil aviation regulations uphold a country’s sovereign rights over its airspace.

Body:

Comprehending International Laws and Airspace

• Communication systems, military defense, and commercial aircraft all depend on airspace.
• Every state has total and exclusive control over the airspace above its territory, including the land and territorial waters, as stipulated by the 1944 Chicago Convention on International Civil Aviation.

These Laws’ Effects on the Space Above Airspace

• Absence of Sovereignty in Outer Space: No nation has the right to assert sovereignty over outer space, in contrast to airspace.
• The Moon and other celestial bodies are not subject to national appropriation through claims of sovereignty, usage or occupation, or any other method, according to the 1967 Outer Space Treaty.
• International Cooperation: There is less individual control and greater international cooperation in the use of space above airways.
• According to the law, space exploration and usage must be done for the good of all nations.
  
  

Issues Raised by Space Laws and Airspace

• Commercialization of Space Activities: As space activities become more and more privatized and commercialized, it’s getting harder to ensure all activities are for peaceful purposes and beneficial for all countries.
• Space Debris: Uncontrolled satellite launches and space missions have produced space debris, endangering the International Space Station and operating satellites.
• National Security Risks: The development of space weaponry as a result of technological breakthroughs presents serious risks to international peace and security.
  
  

Strategies for Reducing the Danger

• International Laws and Guidelines: It is necessary to create thorough international laws and guidelines for space operations, such as satellite and space mission launches.
• Encouraging International Cooperation: To guarantee that space exploration benefits all nations, international cooperation should be encouraged.
• Resolving Space Debris: The problem of space debris needs to be addressed. The removal of obsolete satellites and other space debris need to be required of satellite operators and space agencies.

Conclusion: Space and airspace are essential components of our globalized society, and their utilization affects many industries, including defense, telecommunications, aviation, and meteorology. In general, the shared use of outer space and sovereignty over airspace have worked effectively. However, there is an urgent need for more extensive international laws and collaboration due to new issues including the militarization of space and the rise in space debris.

Article: 31^st October, 2024

Topic: India’s economic credibility challenge

Relevance: GS Paper: 3 – Economy

Source: Indian Express

Context

• The article criticizes India’s economic status, pointing out that private and foreign investments are sluggish despite government optimism and certain changes. It draws attention to regulatory obstacles, over-concentration of capital, credibility issues, and the use of platitudes to spur expansion.
  
  

What Is India’s Present Investment Situation?

• Despite encouraging growth statistics and government incentives like tax exemptions, Finance Minister Nirmala Sitharaman voiced concerns about the low levels of both foreign and local investments in India.
• Nevertheless, despite hopeful forecasts over the years, investments are still lagging and the anticipated surge in private investment has not yet occurred.
• Although it recognizes serious persistent flaws, the Reserve Bank of India (RBI) points to certain encouraging developments in private investment.
• Companies’ cautious expenditure and decreasing corporate growth are having an impact on investments in new capacities.

Which are the main gaps in credibility?

• Epistemic Gaps: It is challenging to determine the actual state of the economy due to contradictory claims of consumer confidence and economic conditions.
• Regulatory Issues: Because of its erratic laws and heavier compliance requirements, India is seen as having a difficult business climate.
• Concentration of Capital: A few numbers of powerful companies now hold a disproportionate amount of economic power, which undermines competition and may discourage new and smaller businesses.
• General Economic Credibility: People lose faith in the government’s economic management when officials frequently rely on optimistic comments (referred to as “Open Mouth Operations”) that do not adequately address underlying economic problems.
  
  

What Impact Does Credibility Issues Have on Economic Growth?

• Credibility in governance is essential to long-term growth.
• Even while India has impressive infrastructure, problems like urban flooding point to weaknesses in fundamental governance.
• Investor confidence is weakened when statements are followed by no action, giving the impression that India’s economic management is unclear and inconsistent.

Also Read Topics & Concepts:

Prelims Practice Questions

Q. Consider the statements

1. Human capital formation as a concept is better explained in terms of a process that enables individuals of a country to accumulate more capital.

2. increasing the knowledge, skill levels and capacities of the people of the country.

3. accumulation of tangible wealth.

4. accumulation of intangible wealth

Which of the statements given above is/are correct?

(a) 1 and 2

(b) 2 only

(c) 2 and 4

(d) 1, 3 and 4

Ans: c

Explanation

“The knowledge, skills, competencies, and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods, services, or ideas in market circumstances” is the definition of human capital.
The process of gradually increasing the stock of human capital is known as human capital formation. It is the process of hiring and expanding the pool of knowledgeable and experienced individuals. It is necessary for an economy to develop.
A country’s skilled population, human resource base, culture, arts, etc. are all considered to be its intangible asset.
Investments in health, education, on-the-job training, migration, and information lead to the creation of human capital.

Mains Model Questions Q. Despite the consistent experience of high growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive.

Introduction:

India’s economy has grown at a steady pace in recent years, making it one of the major economies with the quickest rates of development. But in spite of this remarkable expansion, the nation still struggles with poor human development metrics, highlighting the difficulties in attaining inclusive and balanced development. The nation’s Human Development Index (HDI) ranking of 131 out of 189 in the UNDP report makes this clear.

Body:

In India, a number of problems make inclusive and balanced growth elusive:

• Income disparity: India continues to have high levels of income inequality, with a disproportionate amount of wealth held by the top 10% of the population. The impoverished have less prospects for social and economic mobility as well as access to essential services due to this unequal distribution of resources.
• Regional disparities: There are notable differences in the level of development between India’s various regions, with certain states and districts falling well short of others in terms of human development metrics. These differences prolong cycles of poverty and underdevelopment by making matters worse for underprivileged areas.
• Social exclusion: Groups that are socially marginalized, such religious minorities, scheduled castes, and scheduled tribes, nevertheless experience prejudice and exclusion, which restricts their access to opportunities, resources, and social services.
• Gender inequality: The country’s overall development is hampered by the persistence of gender differences in political representation, labor force participation, health, and education. Promoting inclusive development requires addressing gender disparity.
• Inadequate social sector investments: To fulfill the requirements of India’s vast and diverse population, investments in vital social areas including health, education, and social protection have frequently fallen short. As a result, inclusive growth has been hampered by insufficient infrastructure, service delivery, and human resource development.

Conclusion: India can make sure that the advantages of progress are distributed to all facets of society by addressing these issues and embracing a more inclusive and equitable approach to development, which will improve human development results for the whole population.

Article: 31^st October, 2024

Topic: 149^th Birth Anniversary of Sardar Patel

Relevance: GS Paper: 1 – Important Personalities

Source: PIB

Context

• On the occasion of Sardar Vallabhbhai Patel’s 149th birthday, Prime Minister Narendra Modi presented him with flowers and took part in the Rashtriya Ekta Diwas festivities at the Statue of Unity in Kevadia, Gujarat.
  
  

Rashtriya Ekta Diwas

• Rashtriya Ekta Diwas, also called National Unity Day, has been observed annually on October 31 to honor Sardar Patel’s birth anniversary since 2014.
• It encourages a sense of unity among the nation’s citizens and acts as a reminder of his attempts to bring the several princely realms together to form a unified nation.
  
  

Sardar Patel’s Early Life

• He was a lawyer, activist, and independence fighter who was born in Nadiad, Gujarat, on October 31, 1875. He was also one of the founding fathers of the Republic of India.
• He didn’t care about Indian politics in the early years. Later on, however, he began to be influenced by Mahatma Gandhi, and by 1917, he had adopted Gandhi’s Satyagraha (non-violence) philosophy.
• Patel was Ahmedabad’s first Indian municipal commissioner from 1917 to 1924. From 1924 to 1928, he was chosen as the city’s municipal president.
  
  

Contributions to the Freedom Struggle in India

• Kheda 1917’s Satyagraha: Patel, a well-known local leader in Gujarat’s Kheda area, helped Mahatma Gandhi organize the Satyagraha against the British government’s unfair land revenue duties.
• Non-Cooperation Movement, 1920–22: Patel raised 1.5 million rupees and recruited almost 300,000 people, making a substantial contribution to the Non-Cooperation Movement.
• He promoted using Khadi as a cultural and economic icon and boycotting British products.
• Bardoli Satyagraha, 1928: Patel helped the locals who were starving and paying higher land fees during the Bardoli Satyagraha.

• He took an active part in the Salt Satyagraha, a peaceful demonstration against the British salt monopoly, during the Civil Disobedience Movement of 1930–34.
• Quit India Movement, 1942: He organized strikes and protests against British rule and gave powerful speeches all over India, encouraging and motivating people to participate in civil disobedience, boycott taxes, organize large-scale protests, and shut down the civil service.
  
  

Contributions to India’s Unification

• Political Integration of India: He was a key figure in both the 1947 Indo-Pakistan War and the political integration of India.
• Integration of Princely States: In a surprisingly short amount of time, he was able to successfully integrate 565 Princely States into the Union of India, an unprecedented accomplishment in history.
• Administrative Reforms: The establishment of All India Services was one of Sardar Patel’s many noteworthy accomplishments. He had imagined that these services would serve as the “Steel frame of India,” further preserving the integrity and unity of the nation.
• Promotion of National Integration: He highlighted that the nation must remain unified despite its diversity and advocated the “Idea of India” as a single nation.
  
  

Additional Contributions

• Constitutional Role: He served as the chair of several constitutional committees, including the Provincial Constitution Committee, the Committee on Minorities and Tribal and Excluded Areas, and the Advisory Committee on Fundamental Rights.
• In addition, he was India’s first Home Minister and Deputy Prime Minister after independence.
  
  

Honors and Acknowledgments

• Iron Man of India: After the country was divided, he served as Home Minister and established and preserved internal peace, earning him the nickname “Iron Man.”
• Bharat Ratna: In 1991, he received the nation’s highest civilian honor, the Bharat Ratna, as a posthumous tribute.
• On the celebration of his 143rd birthday, the Statue of Unity—the highest statue in the world—was unveiled in Kevadia, Gujarat, on October 31, 2018.

Conclusion

• Beyond politics, Sardar Patel is remembered as the personification of solidarity, fortitude, and dedication to the welfare of the country.
• His life has contributed to the development of India into a more powerful, cohesive nation and is still a witness to the strength of leadership, commitment, and an unwavering love for his homeland.

Also Read Topics & Concepts:

Prelims Practice Questions

Q. Which of the following claims regarding “bardoli satyagraha” is untrue?
a. The Surat district is home to the well-known Bardoli Taluka.
b. When the government agreed to raise land revenue by 50% in January 1926, the agitation got underway.
c. Vallabhbhai Patel was summoned to spearhead the movement in February 1926.
d. He was dubbed “Sardar” by the women of Bardoli.

Ans: b

Explanation

Since Gandhi entered the national political scene, the Bardoli taluqa in the Surat district has seen significant politicization.
When the government agreed to raise land revenue by 30% in January 1926, the agitation got underway.
The leaders of the Congress swiftly objected, and a Bardoli Inquiry Committee was established to investigate the matter.

The committee concluded that the revenue increase was not warranted. Vallabhbhai Patel was summoned to spearhead the agitation in February 1926.
He was given the title “Sardar” by the women of Bardoli.

Mains Model Questions Q. “Sardar Patel has made an extraordinary and incomparable contribution to the Indian Freedom struggle.” Comment.

Introduction:

A key player in the Indian Freedom Struggle, Sardar Vallabhbhai Patel went on to become India’s first Home Minister and Deputy Prime Minister. He is credited for helping to unite 565 princely nations into the recently independent nation of India. The Iron Man of India, Sardar Patel, made numerous significant contributions to the Indian liberation movement and to contemporary India.

Body:

Sardar Patel’s role in the Indian liberation movement and contemporary India:

• Vallabhbhai took over the role of Gujarat’s farmer leader in 1918. He launched the Kheda satyagraha, calling for the halt of farmer revenue collection due to the drought.
• When the Congress began the non-cooperation movement in 1920, Vallabhbhai stopped practicing. Instead of sending kids to government schools, he established the Gujarat Vidyapeeth.
• He was successful in organizing Bardoli’s landowners to oppose British tax increases in 1928. The title of Sardar (Leader) was thereafter bestowed upon Vallabhbhai.
• He presided over the Indian National Congress during its Karachi session in 1931, which gave the movement new socioeconomic elements and transformed it from a political struggle. He was a member of the No Changers faction in Congress and emphasized the importance of constructive work in reviving villages and spreading nationalism to the general public.
• During the 28 months that they were in power under the 1935 statute, he also served as the head of the congressional parliamentary subcommittee, which had total authority over the congress ministers.
• He was a key player in the arduous talks for the country’s freedom and partition with the British.
  One of the first Congressmen to embrace India’s division as a response to Muhammad Ali Jinnah’s growing Muslim separatist movement was Vallabhbhai Patel. Jinnah’s Direct-Action campaign, which incited communal bloodshed throughout India, and the viceroy’s vetoes of his home department’s proposals to put an end to the violence on the grounds of constitutionality had infuriated him.
• Sardar Patel was appointed Deputy Prime Minister in 1947, the year India gained its independence. He oversaw the Ministry of States, Information and Broadcasting, and Home Affairs. The responsibility of bringing the 562 Princely States into the union was assigned to him. He accomplished this with skill and took decisive action, such as deploying the army to Hyderabad and Junagadh to pressure them to support free India. He is known as Iron Man of India as a result of these powerful actions.
• Sardar Vallabhbhai Patel believed that the Civil Service should promote national unity and cohesiveness. He envisioned a robust and dynamic federal administrative structure with a significant role for the All-India Services.

Conclusion: Patel was an unselfish leader who devotedly built India’s future and put the needs of the nation above all else. As India continues to grow as one of the world’s largest economies, every Indian must remember Sardar Vallabhbhai Patel’s priceless contribution to creating a modern, united India.

Article: 31^st October, 2024

Topic: Unified Payments Interface (UPI)

Relevance: GS Paper: 3 – Economy

Source: Livemint

Context

• According to the firm, Paytm has been given permission by the National Payments Corporation of India (NPCI) to onboard new UPI users, provided that all procedural rules and circulars are followed.
  
  

Background 

• The action is anticipated to soothe Paytm, which was negatively impacted by the Reserve Bank of India’s earlier this year limits on affiliate business Paytm Payments Bank Limited (PPBL)’s ability to onboard new UPI users on the Paytm app.
  
  

Unified Payments Interface (UPI):

• The National Payments Corporation of India (NPCI) created it in 2016 and constructed it on top of the architecture of the Immediate Payment Service (IMPS).
• It combines many banking functions, such as money transfers, into a single mobile application that may be used with any participating bank.
• Peer-to-peer interbank transfers are intended to be made possible by a single two-click factor authentication procedure.
  
  

The Unified Payments Interface’s (UPI) features include:

• By using the recipient’s UPI ID—which can be a virtual payment address, QR code, or cellphone number—it streamlines transfers and does away with account numbers.
• In the past, the UPI System could only be used to transact the deposited amount. However, pre-approved bank credit lines can now be accessed over UPI by using the credit line on UPI.
• Every time a customer starts a transaction, it removes the need to enter sensitive information such bank account data.
• By improving cross-operability, it makes transactions possible around-the-clock.
• To guarantee seamless account-to-ac payments, it makes use of technologies such as the Immediate Payment Service (IMPS) and the Aadhaar-Enabled Payment System (AEPS).
• Users can utilize UPI Lite X to transfer and receive money offline on any device that supports Near Field Communication (NFC).
• With just one tap and no PIN entry, UPI Tap and Pay enables NFC-enabled QR codes at retailers to process payments.
  
  

Issues, problems, and difficulties related to UPI:

• Adhering to the financial laws, data protection laws, and regulations of many nations may present regulatory and compliance problems as UPI is expanded to serve a global user base.
• Foreign companies like PhonePe and Google Pay control the Indian fintech market, according to a recent study by a parliamentary group titled “Digital Payment and Online Security Measures for Data Protection.”
• Cybercriminals pose a threat to UPI in a number of ways. They may take advantage of system flaws or employ social engineering strategies to obtain private data and cause monetary losses.
• When it comes to managing currency translation and exchange rates, facilitating payments, and loading funds into wallets, UPI presents a substantial hurdle for cross-border transactions.
• Financial fraud results from UPI’s continued resistance to wider acceptance, particularly among those who are unfamiliar with digital payments.

Also Read Topics & Concepts:

Prelims Practice Questions

Q. Consider the following statements regarding Unified Payments Interface (UPI):

1. The National Payments Corporation of India (NPCI) oversees the Unified Payments Interface (UPI).
2. UPI LITE is a payment system that uses technology to handle transactions with a value of less than two hundred rupees.
3. To access multiple bank accounts, UPI only needs a single mobile app.

Which of the above statements are correct?

1. 1 only
2. 2 and 3
3. 1 and 2
4. 1, 2, 3

Ans: b

Explanation

The Reserve Bank of India (RBI) oversees UPI, which was created by the National Payments Corporation of India (NPCI).
A payment method called UPI LITE uses technology to handle transactions with values under two hundred rupees. To access multiple bank accounts, UPI only needs a single mobile app.

Mains Model Questions Q. With multiple accomplishments to its name, the Unified Payments Interface (UPI) has been a ground-breaking technology in India’s digital payments market. Discuss about it. Do you believe that charging for UPI transactions would deter people from using it?

Introduction:

Users can transfer money between multiple bank accounts without disclosing personal information to the other party thanks to a technology called the Unified Payments Interface (UPI), which unifies multiple bank accounts into a single mobile app (of any participating bank). It is an improved form of the 24-hour funds transfer service known as Immediate Payment Service (IMPS), which makes cashless transactions quicker, simpler, and more seamless.

The Reserve Bank of India (RBI), the Indian Banks Association (IBA), and the NPCI together introduced it in 2016.

Body:

UPI’s success

• Preferred Payment Method: In January 2023, 803.6 crore digital payments of ₹12.98 lakh crore were made via BHIM UPI, which has become the citizens’ preferred payment method.
• Quick and easy payment method: Digital payment methods like BHIM-UPI and IMPS allow funds to be instantly transferred to the beneficiary’s account, unlike cash. Additionally, an easy-to-remember virtual payment address (email-like address) or cell number can be used to conduct a digital transaction via mobile phone when using the BHIM-UPI method. Payments are now easier thanks to BHIM-UPI, which has made it possible to access several bank accounts with a single mobile app.
• Enhanced openness in the government system: In the past, cash payments were vulnerable to “leakage,” or payments that do not reach the receiver in full, and “ghost,” or phony, recipients, especially when it came to government transfers of social security benefits. Benefits are now sent straight to the target beneficiary’s account (direct benefit transfer) via electronic payment methods.
• Enhanced velocity and prompt delivery: Digital payments can be made almost instantly, regardless of whether the sender and the recipient are in the same town, region, or nation. This is in contrast to cash payments, which move at the speed of their carrier.
• The system of the National Electronic Toll Collection (NETC): Through the use of radio frequency identification technology, the NETC system allows customers to pay electronically at highway toll plazas that are NETC-enabled without having to stop at the toll booth.
• Improved Credit Access: Digital payments, as opposed to cash payments, create a user’s financial footprint automatically, expanding their access to official financial services, such as credit. Digital transaction histories can be used by banks and other lending institutions to make cashflow-based lending choices for both retail and business loans, including small enterprises who might have trouble obtaining credit without verifiable cashflows.
• Secure and safe: Cash payment recipients are more susceptible to theft in addition to frequently having to travel long distances to receive their money. Since several stages of authentication are needed to complete transactions, digital payments are safe throughout India.
  
  

UPI’s shortcomings

• The coronavirus epidemic has made cybercrime a greater danger to the worldwide banking and financial services sector.
• Challenges include fraudulent claims, chargebacks, fraudulent buyer accounts, exploitation of promotions and coupons, account takeover, identity theft, card data theft, and triangulation frauds.
• Another issue that many people face is a lack of digital literacy.

Conclusion: A well-crafted Public-Private Partnership (PPP) legislation could serve as a 21st-century catalyst for leveraging market participants’ strength to increase digital infrastructure, accessibility, and literacy among Indians.
Responsible online behavior for the benefit of consumers and the general public can be ensured in a thriving Indian democracy through public policy-driven digital empowerment of the Indian electorate.