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Olive Ridley Turtle for the UPSC Exam? Why are topics like Electoral Trust and Minimum Support price (MSP), World Economic Forum (WEF) important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for January 21, 2025 |
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Critical Topics and Their Significance for the UPSC CSE Examination on January 21, 2025
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For Preliminary Examination: IUCN Red list, Vulnerable species
For Mains Examination: GS III - Environment & ecology
Context:
Over the past two weeks, numerous dead olive ridley turtles have washed ashore in Tamil Nadu, particularly in Chennai. Experts have estimated that so far, between 300 and 350 turtles have been found dead.
Read about:
Habitat of Olive ridley Turtles
Threats to Olive ridley Turtles
Key takeaways:
- Olive ridley turtles begin appearing near the Tamil Nadu coast around September and October for breeding, with their nesting season spanning from late November to March.
- While turtle mortalities during this time are not unusual, the discovery of numerous carcasses so early in the season has raised concerns among conservationists and local residents.
- According to officials from the Tamil Nadu Forest Department, precise data on the deaths is still being compiled. Reports of similar incidents have also come from Pulicat in Thiruvallur district, located north of Chennai.
- Discovering olive ridley carcasses during their mating season is a common occurrence. These turtles mate in nearshore waters, and females arrive in small groups to nest on Tamil Nadu’s beaches.
- However, they often fall victim to bycatch, becoming unintentionally trapped in the fishing nets of commercial trawlers, leading to their deaths, as experts point out. Olive ridley turtles lay eggs along the coastlines of multiple Indian states, with mass nesting concentrated in Odisha, followed by Andhra Pradesh and Tamil Nadu.
- In Odisha, beaches like Gahirmatha and Rushikulya host the arrival of hundreds of thousands of female olive ridleys annually. Using their flippers, the turtles create nests in the sand and lay between 100 and 110 eggs in each. They then cover the nests with sand to protect them from predators before returning to the sea.
- After about 45-60 days, thousands of hatchlings emerge and head toward the ocean. At nesting sites where disturbances from humans or predators are likely, Forest Departments establish hatcheries.
- Eggs are carefully collected from the nests and placed in these protected environments. Once the eggs hatch, the juvenile turtles are released near the sea to ensure their survival
(a) Saltwater crocodile
(b) Olive ridley turtle
(c) Gangetic dolphin
(d) Gharial
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Answer (b)
The Gangetic dolphin (Platanista gangetica), also known as the South Asian river dolphin, was declared the National Aquatic Animal of India in 2009. This designation highlights its ecological importance and the need for conservation. Below are some key points about the Gangetic dolphin: Significance:
Characteristics:
Conservation efforts:
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What are Electoral Trusts?
How Electoral Trusts is different from that of the electoral bond scheme?
Key takeaways:
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On February 15, 2024, the Supreme Court declared the electoral bond scheme unconstitutional and directed banks to immediately stop issuing bonds.
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Following the Supreme Court's ruling, nearly 75% of the donations to the Prudent Electoral Trust, which received the highest contributions, were made. Of the total ₹1,075.7 crore donated to the trust, ₹797.1 crore was contributed after the judgment.
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Donations to the Prudent Electoral Trust almost tripled compared to the previous year, rising to ₹1,075.7 crore in the last financial year from ₹363.16 crore the year before, as per the report.
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Major contributors to the trust in 2023-24 included ArcelorMittal Nippon (₹100 crore), DLF (₹99.5 crore), Maatha Projects (₹75 crore), Maruti Suzuki (₹60 crore), and CESC (₹60 crore).
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The Bharatiya Janata Party (BJP) received the largest share of donations through the trust, amounting to ₹723.8 crore. This was followed by the Congress Party with ₹156.35 crore, Bharat Rashtra Samithi (BRS) with ₹85 crore, and YSR Congress Party with ₹72.5 crore.
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Triumph Electoral Trust also facilitated ₹132.5 crore in donations, of which ₹130 crore was received after February 15.
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Total contributions through the Triumph Electoral Trust increased significantly from ₹0.5 crore the previous year. Key contributors included Cholamandalam Investment (₹50 crore), CG Power Industrial (₹30 crore), and Coromandel International (₹25.5 crore). Of the total donations, ₹127.5 crore went to the BJP, and ₹5 crore was allocated to the Dravida Munnetra Kazhagam (DMK)
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The scheme, introduced by the UPA-2 government on January 31, 2013, allows any company registered under Section 25 of the Companies Act, 1956, to establish an electoral trust.
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According to Section 17CA of the Income-tax Act, 1961, Indian citizens, companies registered in India, firms, Hindu Undivided Families, or associations of persons residing in India are eligible to donate to an electoral trust.
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Electoral trusts are required to renew their registration every three financial years and must allocate 95% of the contributions they receive in a financial year to political parties registered under the Representation of the People Act, 1951.
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At the time of making contributions, resident contributors must provide their PAN, while non-resident Indians (NRIs) must submit their passport number.
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The electoral trust system ensures transparency regarding contributors and beneficiaries. When a trust has a single contributor and a single beneficiary, the funding trail is clear. For example, in 2018-19, the Janhit Electoral Trust received a single contribution of ₹2.5 crore from Vedanta, which was entirely donated to the BJP, as detailed in the trust’s annual contribution report
Follow Up Question
1.Consider the following statements: (UPSC 2017)
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 only
C. 2 and 3 only
D. 3 only
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Answer (D)
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MSP Framework needs to revisit
For Preliminary Examination: Current events of national and international importance
For Mains Examination: GS II & III - Governance and Policy making, Economy
Context:
MSP framework needs a revisit. The competitive populism to give free food, power, or highly subsidised fertilisers, or pocket money in the name of Ladli Behna, is a race to the bottom
Read about:
Which are the Crops Covered under MSP?
How MSP is calculated (paid out costs, labour etc.) and Crops covered under the MSP?
Key takeaways:
- In the mid-1960s, India relied on importing 10 million tonnes (MT) of wheat annually from the United States under the PL 480 scheme, with payments made in rupees due to a lack of sufficient foreign exchange reserves to purchase food on the global market. U.S. food aid came with political conditions, as demonstrated when President Lyndon Johnson temporarily suspended shipments for 72 hours after India issued a pro-Vietnam statement during the U.S. war in Southeast Asia.
- In 1966, India imported 18,000 tonnes of high-yielding wheat seeds from Mexico, marking the beginning of the Green Revolution. Against this backdrop, the Minimum Support Price (MSP) policy for wheat and paddy was introduced. At that time, India’s population was approximately 500 million.
- With much of India’s food system now digitized for both consumers and farmers, transitioning to direct cash transfers for targeted beneficiaries could make the system more cost-effective and efficient. Additionally, reforms are needed in land markets, particularly in land leasing, as the highly regulated land market and government-controlled pricing of inputs and outputs, such as rice and wheat, coupled with large-scale procurement, have created significant inefficiencies.
- A portion of the inefficiency stems from the Public Distribution System (PDS), which provides free rice and wheat to around 57% of the population, even though the government reports having lifted 248 million people out of poverty over the past decade. This has created a cyclical issue: India must procure approximately 60 MT of grain annually to sustain the free grain distribution system.
- According to the Commission for Agricultural Costs & Prices (CACP), during the RMS 2024-25 season, MSP benefited 22 lakh wheat farmers, 1.13 lakh lentil farmers, 5 lakh mustard farmers, and 15,409 gram farmers. In the previous two seasons, RMS 2022-23 and RMS 2023-24, 11.68 lakh and 10.29 lakh gram farmers benefited, respectively.
- Pulse and oilseed procurement is carried out by NAFED and NCCF under the Price Support Scheme. The decline in the number of gram farmers benefiting from MSP in the ongoing season was attributed to gram prices being higher than the market rate since the start of the harvesting season, as per a source
Crops Covered under MSP
The Minimum Support Price (MSP) in India is announced by the government for various crops to ensure farmers receive a fair price for their produce and to promote agricultural production. These crops are categorized into three main groups: Kharif crops, Rabi crops, and other commercial crops. Below is a list of crops currently covered under MSP:
Kharif Crops
- Paddy (Rice)
- Jowar (Sorghum)
- Bajra (Pearl Millet)
- Maize (Corn)
- Ragi (Finger Millet)
- Arhar (Tur/Tur Dal or Pigeon Pea)
- Moong (Green Gram)
- Urad (Black Gram)
- Groundnut
- Soybean
- Sunflower Seed
- Sesamum (Sesame)
- Niger Seed
- Cotton
- Wheat
- Barley
- Gram (Chickpea)
- Lentil (Masoor)
- Rapeseed and Mustard
- Safflower
- Sugarcane (Fair and Remunerative Price, FRP, is used instead of MSP)
- Jute
- Copra
Follow Up Question
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Answer (D)
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For Preliminary Examination: Current events of antional and international importance
For Mains Examiantion: GS II - International organisarions and Monetary Organisations
Context:
World Economic Forum (WEF) is holding its Annual Meeting from January 20 to 24 in Davos, Switzerland. Attendees will include European Commission President Ursula von der Leyen, China’s Vice Premier Ding Xuexiang, and other leaders in business and politics.
Read about:
World Economic Forum
What is the purpose of the World Economic Forum?
Key takeaways:
- Historically, Davos has served as a venue for significant international diplomacy, providing a space for leaders to ease tensions. According to the WEF website, it was here that North and South Korea held their first ministerial-level discussions. In the same meeting, East German Prime Minister Hans Modrow and German Chancellor Helmut Kohl engaged in talks about German reunification.
- In 1992, during the Annual Meeting, South African President F.W. de Klerk met Nelson Mandela and Zulu leader Mangosuthu Buthelezi for their first joint public appearance outside South Africa, marking a key moment in the nation's political transition.
- In 1998, there was a call to include major developing countries in global discussions. One proposal was to create a body comprising 20 countries, split evenly between developed and developing nations.
- This idea led to the formation of the G20, which first convened in Bonn, Germany, later that year, with participation limited to finance ministers and focusing solely on global finance.
- The G20 later evolved into a summit, with the first of these meetings taking place in 2008 in Washington D.C. to address the global economic crisis.
- Additionally, the WEF began publishing influential global indices, such as the Global Competitiveness Report and the Global Gender Gap Report.
- The WEF was founded by German professor Klaus Schwab, who holds a degree in mechanical engineering and a Master of Public Administration from the John F. Kennedy School of Government at Harvard University. From 1972 to 2003, Schwab taught business policy at the University of Geneva and established the WEF in 1971, initially named the European Management Forum. He is also known for introducing the concept of "stakeholder capitalism."
World Economic Forum (WEF)
- The WEF serves as a platform for leaders from various sectors (government, business, civil society, and academia) to discuss and collaborate on pressing global issues, ranging from economic development to climate change, healthcare, and digital transformation
- The WEF works on initiatives that tackle significant global challenges such as poverty, inequality, environmental sustainability, and geopolitical tensions. It brings together diverse stakeholders to find solutions that benefit the global community
- By hosting events such as the Annual Meeting in Davos, the WEF facilitates the exchange of ideas, promotes thought leadership, and sets the agenda for addressing critical issues affecting the global economy and society
- The WEF fosters collaboration between governments and businesses, helping create public-private partnerships to tackle complex issues. It works to bridge the gap between the private sector's resources and the public sector's policy-making power.
- The WEF conducts and publishes research, reports, and rankings (such as the Global Competitiveness Report and Global Gender Gap Report) to provide insights and data-driven recommendations for improving global economies, social systems, and governance
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Answer (C)
The Global Competitiveness Report is published annually by the World Economic Forum (WEF). This report assesses the competitiveness landscape of economies around the world, providing insight into the drivers of long-term economic growth and prosperity. It evaluates factors such as infrastructure, innovation capability, macroeconomic stability, and health, among others
The Global Competitiveness Report is an annual report published by the World Economic Forum (WEF). It aims to evaluate and rank countries based on their level of competitiveness, which is defined as the set of institutions, policies, and factors that determine the productivity levels of an economy. The report provides an in-depth analysis of the drivers that shape the long-term growth and prosperity of nations
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Are BRICS and India trying to replace the dollar as the main global trade currency?
For Preliminary Examination: Current events of national and international importance
For Mains Examiantion: GS II - International Organisations and relations
Context:
President Donald Trump has again threatened 100% tariffs on BRICS. Where does India stand on de-dollarisation and internationalisation of the rupee? What are the issues and concerns involved?
Read about:
Society for Worldwide Interbank Financial Telecommunication (SWIFT)
BRICS
Key takeaways:
- On January 20, 2024, U.S. President Donald Trump reiterated his threat to impose 100% tariffs on the BRICS (Brazil, Russia, India, China, and South Africa) countries if they moved toward reducing the use of the U.S. dollar in global trade.
- Trump emphasized that BRICS nations would face a “100% tariff” if they even considered decreasing the use of the dollar in global trade. This statement was made during a signing ceremony in the Oval Office, as reported by ANI.
- Earlier, in his inaugural speech, Trump had outlined plans to establish an "External Revenue Service" to collect tariffs, duties, and revenues, aiming to "tariff and tax foreign countries to enrich our citizens."
- In December 2024, then-President-elect Trump had warned on social media, demanding a commitment from BRICS nations not to create a new currency or support any other currency to replace the U.S. dollar, threatening 100% tariffs and the loss of access to the U.S. market.
- Are BRICS countries planning to create a new currency to replace the U.S. dollar? Countries globally have been looking for ways to reduce their dependence on the U.S. dollar and the U.S.-led global financial system. The push for alternatives intensified after the U.S. expelled Russia from SWIFT, which is essential for international financial transactions.
- In 2012, Iran had been cut off from SWIFT, which was a significant factor in bringing Tehran to the negotiation table in 2015. When the U.S. reimposed sanctions on Iran in 2018, SWIFT once again suspended access for Iranian banks.
- At the 2023 BRICS summit in Johannesburg, Brazilian President Luiz Inacio Lula da Silva mentioned that creating a new BRICS currency would offer more payment options and reduce vulnerabilities. Similarly, Russian President Vladimir Putin remarked at the 2024 BRICS summit in Kazan that the U.S. had weaponized the dollar, a practice he criticized as a significant mistake.
- Has India taken steps to reduce reliance on the U.S. dollar? Yes. To minimize dependence on the dollar and promote the international use of the Indian rupee, the Reserve Bank of India (RBI) allowed trade invoicing and payments in rupees in 2022, following sanctions imposed on Russia due to the war in Ukraine.
- Prime Minister Narendra Modi, at the Kazan summit, expressed India’s support for financial integration within BRICS, emphasizing that using local currencies and enhancing cross-border payments would strengthen economic cooperation. In November 2024, Foreign Minister S. Jaishankar noted that trade in national currencies is critical, especially in the current global context.
- No, India does not actively seek to target the U.S. dollar or disrupt its role in global trade. However, India has expressed concern over the matter. Jaishankar clarified in October 2024 that while U.S. policies sometimes complicate trade with certain nations, and India seeks alternatives to facilitate trade, it does not have a strategy aimed at diminishing the dollar's dominance.
- He emphasized that India’s approach is not driven by malicious intent but by a natural concern about trade challenges with partners lacking dollars for transactions
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Answer (B)
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What is the Unified Lending Interface by the RBI?
For Preliminary Examination: Current events of national and international importance
For Mains Examination: GS II & III - Unified Payment interface, NPCI
Context:
The Reserve Bank of India (RBI), as part of its strategy to create digital public infrastructure in the country, has announced that a new technology platform called the Unified Lending Interface (ULI) would be introduced by the Reserve Bank Innovation Hub, Bengaluru which will enable friction-less credit to farmers and MSME borrowers to begin with.
Read about:
What is Unified Lending Interface (ULI)?
What is the National Payment Corporation of India (NPCI)?
Key takeaways:
As part of its initiative to develop digital public infrastructure, the Reserve Bank of India (RBI) has announced the introduction of a new technological platform called the Unified Lending Interface (ULI). This platform, developed by the Reserve Bank Innovation Hub in Bengaluru, aims to facilitate hassle-free credit for farmers and MSME borrowers.
What is ULI?
- The Unified Lending Interface (ULI) is designed to enable the smooth transfer of both financial and non-financial digital data from various service providers to lenders, making credit assessments easier and borrower experiences more streamlined.
- According to Rajesh Bansal, CEO of the Reserve Bank Innovation Hub, this platform supports the consent-based flow of digital information, including state land records. This will significantly reduce the time required for credit evaluation, particularly for smaller, rural borrowers without a credit history.
- ULI's architecture features common and standardized Application Programming Interfaces (APIs) that allow for a 'plug and play' model, facilitating digital access to information from multiple sources. This approach simplifies technical integrations and enables borrowers to access credit more quickly, reducing the need for extensive documentation.
- Lenders will be able to access customer data from diverse sources, including government databases like land records and satellite images, through standardized APIs. FinTech companies will also have the opportunity to connect with multiple lenders via the platform, allowing for better customer insights and service.
How will it work?
- First-time loan applicants, often without a credit history or necessary documentation, usually find it challenging to secure bank loans. With ULI, however, digital credit information can be accessed through a single platform, providing data providers and lenders with the information needed to meet the needs of prospective borrowers.
- ULI not only allows access to data about a loan applicant’s financial activities but also provides financial institutions with this data through a straightforward 'plug and play' connection to the platform. Consequently, loan applicants no longer need to spend weeks gathering documents, as banks, NBFCs, or FinTechs can directly retrieve the necessary information from sources linked to the ULI platform.
- For example, a dairy farmer seeking a loan could have their cash flow assessed from data provided by milk cooperatives, verify land ownership through state land records, and evaluate financial status through farming patterns.
- What was once an unclear area for lenders now becomes transparent, enabling informed business decisions. Using ULI, lenders can quickly determine a loan applicant’s income and creditworthiness, leading to automated decision-making and the rapid approval and disbursement of loans.
- Even tenant farmers, who typically struggle to obtain agricultural loans due to a lack of land titles, will be able to access credit. By tracking the use of funds for purchasing agricultural inputs, the ULI platform can reassure banks about the borrower’s identity and credit use, independent of land ownership.
How did it start?
- On August 10, 2023, the RBI announced the creation of a Public Tech Platform for Frictionless Credit, now known as the ULI. The central bank recognized that as digitalization advances, the data necessary for credit evaluation should be readily available at a single point to facilitate digital credit delivery.
- To address this, a pilot project for digitalizing Kisan Credit Card (KCC) loans under ₹1.6 lakh was launched in September 2022.
- The project began in select districts across Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Maharashtra, with promising initial results. According to the RBI, the pilot enabled loans to be disbursed directly to borrowers at their doorstep, either through assisted or self-service modes, eliminating the need for paperwork
Follow Up Question
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Answer (C)
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| Subject | Topic | Description |
| History | Modern Indian History | Important Personalities |
| History | Modern Indian History | Independence and Partition |
| History | Modern Indian History | Constitutional Development in India |
| History | Modern Indian History | Peasants, Tribal and other movements |
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