FLASH FLOODS

2. What is a Flood

• Flood is an overflow of a large amount of water beyond its normal limits, especially over what is normally dry land.
• Flooding is an overflowing of water onto land that is normally dry. 
• Floods can happen during heavy rains, when ocean waves come on shore, when the snow melts quickly, or when dams or levees break. 
• Damaging flooding may happen with only a few inches of water, or it may cover a house to the rooftop. 
• Floods can occur within minutes or over a long period, and may last days, weeks, or longer. 
• Floods are the most widespread of all weather-related natural disasters.

3. Common causes of floods can be divided into the factors triggering them.

These factors include -

• Meteorological factors

• Physical factors

• Human factors

 3.1 Meteorological Factors

The natural causes of floods are discussed below -

• Heavy Rainfall: The season of monsoon
• Cloud Burst: Cloud Burst occurs due to intense precipitation in a short duration which can sometimes be accompanied by hail and storms and can cause a flood.

• Climate Change: According to the International Panel for Climate Change, the rainfall intensity, duration and frequency are going to increase in the future.
• Skewed Rainfall Pattern: 80% of the precipitation takes place in the monsoon months
• Trans-National Rivers: The fact that some of the rivers (like the Brahmaputra, many tributaries of Ganga) causing damage in India to originate in neighbouring countries, adds another complex dimension to the problem
• Cyclone & Heavy rainfall

3.2. Physical Factors.

• Insufficient Drainage Management: Improper planning of the drainage system of an area can cause excess water due to heavy rainfall to get stuck and lead to a flood.

• Catchment Area: Catchment area is an area from where the rainfall water flows into a river. This can be a lake or reservoir. During monsoon, when excess water exceeds the limited holding capacity of the catchment area, it leads to floods.

3.3. Human Factor

• Siltation: Siltation refers to the flow of silt and sediments in the riverbed. As particles remain suspended in the river and accumulated in the riverbed, it disrupts the flow of the river, causing a flood.

• Improper Agricultural Practices: If farmers are not cautious of the effects of farming practices meaning if they leave the waste material in the river or cannot handle water management properly, it can lead to a flood. 

• Deforestation: Deforestation is one of the major human causes of floods. Trees act like a sponge that helps to hold soil and water and prevent flooding. As trees are being cut down at a fast pace to make way for urbanisation to grow, more water runs towards a river during heavy rainfall. As a result, a flood occurs.

• Collapse of Dams: Dams are built to store water and provide water to people. As dams are human-made, these can be worn out and subsequently collapse causing floods. Also, if heavy rainfall sustains for a long time, State Governments often declare to open dam gates which can lead to a dangerous flood.- Temples of Modern India to Water Bombs

• Unplanned Development

• Neglect of Pre-Disaster Planning

 4.Types of Flood

• Coastal Floods: Coastal floods occur when strong winds or storms move towards the coast during high tide.

• Flash Floods: Flash floods usually occur in hilly areas in limited space. Here the sudden heavy rainfall or snow thaws are the causes of flooding. The fast-moving torrent of Flash floods can sweep large objects such as cars, rocks and everything that comes in their path.

• River Floods: River floods occur due to the inflow of water from heavy rainfall, snowmelt or powerful storms.

• Pluvial Floods: Pluvial floods occur in areas that cannot hold rainwater and end up forming puddles and ponds. eg- rural areas.

• Urban Floods: When the drainage system of urban areas fails to absorb rainwater.

The impacts of floods affect both individuals and communities and have social-environmental consequences. 

• Human Loss and Property Loss: Every year, millions of people become homeless and washed away due to floods.

• Spread of Communicable Diseases: Waterborne diseases like cholera, typhoid fever, hepatitis, and leptospirosis spread in flood-affected areas. Floods also lead to vector-borne diseases, transmitted through parasites and pathogens such as a mosquito. As a result, the health of flood victims deteriorates.

• Destruction of Crops: Every year, floods destroy a large number of crops.

• Loss of Livestock: Like humans, livestock also get displaced during floods and dies due to the loss of their habitats.

• Disruption of Communication Link and Transportation: Flood causes damage to transportation links such as bridges, rail, power plants etc., thus causing communication disruption in those areas.

• Economic and Social Disruption: The economy comes to a standstill as people are forced to move to another place, and revival of this situation takes time.

Approaches to dealing with floods may be any one or a combination of the following available options:

• Attempts to modify the flood
• Attempts to modify the susceptibility to flooding damage
• Attempts to modify the loss burden
• Bearing the loss.
• The main thrust of the flood protection programme undertaken in India so far has been an attempt to modify the flood in the form of physical (structural) measures to prevent the floodwaters from reaching potential damage centres and modify susceptibility to flooding damage through early warning systems.

6.1 Structural measures

The following structural measures are generally adopted for flood protection:

• Embankments, flood walls, sea walls
• Dams and reservoirs
• Natural detention basins
• Channel improvement
• Drainage improvement
• Diversion of flood waters.

6.2 Non-structural measures

Non-structural measures include:

• Flood forecasting and warning
• Floodplain zoning
• Flood fighting
• Floodproofing
• Flood insurance.

7.What are Flash Floods

• Flash floods are the most dangerous kind of floods because they combine the destructive power of a flood with incredible speed. 
• Flash floods occur when heavy rainfall exceeds the ability of the ground to absorb it. They also occur when water fills normally dry creeks or streams or enough water accumulates for streams to overtop their banks, causing rapid rises of water in a short amount of time. 
• They can happen within minutes of the causative rainfall, limiting the time available to warn and protect the public.

 8. Status of Floods in India

8.1 NDRF Report

• 40 million hectares (10% of the land mass) in India are prone to floods.
• On average every year, 5 million hectares of land are affected, 1600 lives are lost and more than Rs. 1,800 crores is incurred.

8.2 Statistics

• Between 1970 and 2004, 3 floods occurred per year on average. However, between 2005 and 2019, the yearly average rose to 11. 19 districts were affected annually on an average until 2005. After 2005, the number jumped to 55.
• 2017 analysis suggests that 4.48 million Indians are exposed to riverine floods, the highest in the world.

9. What areas are at risk from flash floods?

• Densely populated areas are at high risk for flash floods. The construction of buildings, highways, driveways, and parking lots increases runoff by reducing the amount of rain absorbed by the ground. This runoff increases the flash flood potential.
• Areas near rivers are at risk from floods. Embankments, known as levees, are often built along rivers and are used to prevent high water from flooding bordering land. 
• Dam failures can send a sudden destructive surge of water downstream. 
• Mountains and steep hills produce rapid runoff, which causes streams to rise quickly. 
• Saturated soils can also lead to rapid flash flooding. 
• Sometimes the thunderstorms that produce heavy rainfall may happen well upstream from the impacted area, making it harder to recognize a dangerous situation.
• Very intense rainfall can produce flooding even on dry soil.
• Additional high-risk locations include recent burn areas in mountains and urban areas from pavement and roofs which enhance runoff.
• Ice jams and snowmelt can help cause flash floods. A deep snowpack increases runoff produced by melting snow. Heavy spring rains falling on melting snowpacks can produce flash flooding.

10. The impact of floods in India

11. Impact of flood on wildlife

12. Government actions regarding flood management

12.1.The National Flood Management Commission

• Launched in 1954
• Different structural and non-structural methods have been applied by various states under it.

• To evolve a scientific, integrated and coordinated approach to flood control
• It recommended Flood plain zoning and management to regulate human activities.

• It was set up to review the impact of the recommendations of Rashtriya Barh Aayog.
• It recommended large flood moderation projects, following up the enactment of flood plain zoning.

12.4.National Water Policy, 2002

• It recommended
• Basin-wise plan for flood control and management.
• Flood control to be given overriding consideration in reservoir regulation policy.
• More emphasis on non-structural measures.
• Strict regulation of settlements and economic activities in flood plains.

12.5. K. Mittal Committee, 2003
Its main recommendations were

• Afforestation and treatment of catchment area, right land-use practices and others.
• In the river itself a construction of suitable hydraulic structures that may trap silt.
• Embankment along the aggrading river should be constructed, only after proper studies are made on its behaviour especially due to sedimentation load and resultant morphological changes.

 

For Prelims: Cloudbursts, flash floods, landslides, Cumulonimbus Clouds, Water Vapour, Floodplain Zoning, Green Infrastructure. For Mains: 1. What is a cloudburst, and how does it differ from regular rainfall? Explain the causes and meteorological factors that contribute to the occurrence of a cloudburst.

 

 

Previous year Questions 1. Which of the following statements with regard to Cloudburst is/are correct? (UPSC CDS 2017) 1. It is defined as sudden localized very heavy downpour with cloud thunder and lightning. 2. It mostly occurs in the hilly areas. 3. It results in a very high intensity of rainfall, i.e., 250 mm-300 mm in a couple of hours. 4. It occurs only during the daytime. Select the correct answer using the code given below.  A. 1, 2 and 3 B. 1, 3 and 4 C. 2 and 3 only D. 2 only Answer: A

 Source: The Indian Express

 

 

COLLEGIUM 

 

1. Context

Supreme Court judge Justice Ujjal Bhuyan stated on Saturday that the top court Collegium’s lack of transparency in judicial appointments creates a loophole, allowing individuals who make unconstitutional or derogatory remarks to enter the judiciary.

2. Collegium System

• The Collegium system is not rooted in the Constitution. Instead, it has evolved through judgments of the Supreme Court.
• Under the system, the Chief Justice of India along with four senior-most Supreme Court judges recommend appointments and transfers of judges.
• A High Court Collegium, meanwhile, is led by the incumbent Chief Justice and the two senior-most judges of that court.
• In this system, the government’s role is limited to getting an inquiry conducted by the Intelligence Bureau (IB) if a lawyer is to be elevated as a judge in a High Court or the Supreme Court.
• The government can also raise objections and seek clarifications regarding the Collegium’s choices, but, if the Collegium reiterates the same names, the government is bound, under Constitution Bench judgments, to appoint them to the post. 

3. Evolution of Collegium System

The system evolved in the three Judge's cases:

• In the First Judges case, the court held that the consultation with the CJI should be "full and effective".
• The Second Judges Case introduced the collegium system in 1993, as they ordered the CJI to consult a collegium of his two senior judges in the apex court on judicial appointments, such a "collective opinion" of the collegium would have primacy over the government.
• The Third Judges case in 1998, expanded the judicial collegium to its present composition of the CJI and four of its senior-most judges.

4. Constitutional Provisions for Appointment of Judges

Article 124(2)

Every Judge of the Supreme Court shall be appointed by the President by warrant under his hand and seal after consultation with such of the Judges of the Supreme Court and the High Courts in the States as the President may deem necessary for the purpose and shall hold office until he attains the age of sixty-five years.

Article 217

Every Judge of a High Court shall be appointed by the President by warrant under his hand and seal after consultation with the Chief Justice of India, the Governor of the state, and, in the case of appointment of a Judge other than the Chief Justice, the Chief Justice of the High court, and shall hold office, in the case of an additional or acting Judge, as provided in Article 224, and in any other case, until he attains the age of sixty-two years.

5. Procedure for replacement of Collegium System

• Replacing the Collegium system calls for a Constitutional Amendment Bill.
• It requires a majority of not less than two-thirds of MPs (Members of Parliament) present and voting in Lok Sabha as well as Rajya Sabha.
• It also needs the ratification of legislatures of not less than one-half of the states.

6. What are the concerns associated with the Collegium system?

• Constitutional Status: The Collegium is not prescribed in the Constitution. Article 124 mentions consultation, which the SC interpreted as ‘concurrence’ in Second Judges Case (1993). During the hearing against the NJAC, the then SC Bar President had argued that the Constituent Assembly had considered a proposal for making Judges’ appointment ‘in concurrence’ with the CJI but had eventually rejected it. 
• Transparency: There is no official procedure for selection or any written manual for the functioning of the Collegium. The parameters considered for selection (or rejection) are not available in the public domain.
• Accountability: The selection of Judges by the Judges is considered undemocratic. Judges are not accountable to the people or any other organ of the State (Legislature or Executive). It can add an element of arbitrariness in functioning.
• Criticism by Judges: Many retired Judges have criticized the working of the Collegium, especially the lack of transparency. Several controversial appointments have been made despite objections by the member-Judges of the Collegium.
• No Checks: There are no checks on the process. Nor has there been any review regarding the effectiveness of the process. Critics of the system argue the phenomena of ‘Uncle Judges’ wherein near relatives, kith, and kin of sitting Judges are appointed to the higher judiciary leading to nepotism. Law Commission in its 230^th Report (2012) recommended that that the Judges, whose kith and kin are practicing in a High Court, should not be appointed in the same High Court. The absence of transparency, accountability, and external checks creates space for subjectivity and individual bias in appointments. In some cases, the principle of seniority has been ignored.
• No Reforms: The Supreme Court did not amend the contentious provisions of the NJAC Act or added safeguards to the Act. Instead, it struck down the whole Act. The Supreme Court reverted to the old Collegium System. However, the Court did not take any steps to address the concerns associated with the Collegium System.

7. What is National Judicial Appointments Commission (NJAC)

• The Constitution (99th Amendment) Act, which established the NJAC and the NJAC Act, was passed by Parliament in 2014 to set up a commission for appointing judges,
  replacing the Collegium system.
• This would essentially increase the government’s role in the appointment of judges. 
• The laws were repealed in October 2015 after the Supreme Court struck them down.

7.1 Composition of NJAC

• The Chief Justice of India as the ex officio Chairperson.
• Two senior-most Supreme Court Judges as ex officio members.
• The Union Minister of Law and Justice as ex officio members. 
• Two eminent persons from civil society (one of whom would be nominated by a committee consisting of the CJI, Prime Minster, and the Leader of Opposition in the Lok Sabha, and the other would be nominated from the SC/ST/OBC/minority communities or women.

For Prelims: Collegium system, National Judicial Appointments Commission (NJAC), Supreme court, High court, Intelligence Bureau (IB), First Judges case, Second Judges Case, Third Judges Case, Article 124(2), Article 217, Law Commission, and 99th Constitutional Amendment Act. For Mains: 1. What are the two systems of the appointment of Judges that has triggered the fresh debate on the Judicial system in India? (250 Words).

 

 

Previous year Question 1. With reference to the Indian judiciary, consider the following statements: (UPSC 2021) 1. Any retired judge of the Supreme Court of India can be called back to sit and act as a Supreme Court judge by the Chief Justice of India with the prior permission of the President of India. 2. A High Court in India has the power to review its own judgment as the Supreme Court does. Which of the statements given above is/are correct? A.  1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 Answer: A   2. In India, Judicial Review implies (UPSC 2017) A. the power of the Judiciary to pronounce upon the constitutionality of laws and executive orders B. the power of the Judiciary to question the wisdom of the laws enacted by the Legislatures C. the power of the Judiciary to review all the legislative enactments before they are assented to by the President D. the power of the Judiciary to review its own judgments given earlier in similar or different cases Answer: A   3. Consider the following statements: 1. The motion to impeach a Judge of the Supreme Court of India cannot be rejected by the Speaker of the Lok Sabha as per the Judges (Inquiry) Act, 1968. 2. The Constitution of India defines and gives details of what constitutes 'incapacity and proved misbehavior' of the Judges of the Supreme Court of India 3. The details of the process of impeachment of the Judges of the Supreme Court of India are given in the Judges (Inquiry) Act, of 1968. 4. If the motion for the impeachment of a Judge is taken up for voting, the law requires the motion to be backed by each House of the Parliament and supported by a majority of the total membership of that House and by not less than two-thirds of total members of that House present and voting. Which of the statements given above is/are correct?  A. 1 and 2 B. 3 only C. 3 and 4 only D. 1, 3 and 4 Answer: C

 

Source: The Indian Express

 

 

CAUVERY WATER DISPUTE

 

 

 

1. Context

 

Stating that the water situation in the Cauvery was “slightly better” in view of the rain, Karnataka Chief Minister D.K. Shivakumar on Sunday reiterated his appeal to the Kannada organisations to withdraw their State-wide bandh plan for August 13.

 

2. About Cauvery dispute

• The Cauvery water dispute, which has been a bone of contention between Karnataka and Tamil Nadu for decades now
• The Cauvery water dispute has influenced the politics of the region for long with parties stirring the emotions of people as the river has a deep cultural, economic and religious significance for them
• The Cauvery basin covers a large expanse of land including major chunks in Karnataka and Tamil Nadu and also smaller areas in Kerala and Puducherry
• Initially, the dispute was between Karnataka and TN but later Kerala and Puducherry also entered the fray
• The issue dates back to 1892 when an agreement was filed between Madras Presidency and Mysore for arbitration but led to a fresh set of disputes
• Later, attempts were renewed to arbitrate between the two states under supervision of the Government of India and a second agreement was signed in 1924

 

3. Post-Independence efforts

• As Kerala and Puducherry also laid claim on share of Cauvery water after India attained Independence, a Fact Finding Committee was set-up in 1970 to figure out the situation on ground
• The committee submitted its report in 1972 and further studies were done by expert committee and the states reached at an agreement in 1976
• However, after a new government came to power in Tamil Nadu, it refused to give a consent to terms of agreement paving way for further dispute
• Later in 1986, Tamil Nadu government appealed the Central government to constitute a tribunal for solving the issue under Inter-State Water Disputes Act, 1956
• However, the tribunal was not set-up until Supreme Court took cognizance of the matter and ordered the Central government to do so in 1990. The Cauvery Waters Tribunal was constituted on June, 2, 1990
• After 16 years of hearing and an interim order, the Tribunal announced its final order in 2007 allocating 419 tmc ft water to Tamil Nadu and 270 tmc ft to Karnataka
• Kerala was given 30 tmc ft and Puducherry got 7 tmc ft. The Tribunal had come to a conclusion that total availability of water in Cauvery basin stood at 740 tmc ft
•  However, both Tamil Nadu and Karnataka filed a review petition before the Tribunal
• In 2012, Prime Minister Manmohan Singh, as chairman of Cauvery River Authority, directed the Karnataka government to release 9,000 cusecs of water daily

4.About Cauvery river

• The Cauvery River, also spelled as Kaveri, is one of the major rivers in South India. It originates from the Western Ghats in Karnataka and flows through the states of Karnataka and Tamil Nadu before emptying into the Bay of Bengal.
• The river and its tributaries have significant cultural, historical, and ecological importance.
• The Cauvery River originates at Talakaveri in the Brahmagiri hills of the Western Ghats in Karnataka.
• It flows eastward through Karnataka and Tamil Nadu before eventually emptying into the Bay of Bengal.
• The river traverses a distance of approximately 765 kilometers

 

 Here are some details about the Cauvery River and its important tributaries:

Hemavati River: One of the main tributaries of the Cauvery, the Hemavati River originates in the Chikmagalur district of Karnataka and joins the Cauvery near Krishnarajasagar Dam.

Arkavati River: Rising from the Nandi Hills in Karnataka, the Arkavati River is another important tributary that meets the Cauvery near Kanakapura.

Kabini River: The Kabini River, also known as Kapila, originates in the Wayanad district of Kerala and flows through Karnataka. It joins the Cauvery near Tirumakudal Narasipura.

Shimsha River: This tributary flows through the state of Karnataka and joins the Cauvery near Shivanasamudra, which is known for its picturesque waterfalls.

Bhavani River: Originating in the Nilgiri Hills of Tamil Nadu, the Bhavani River flows through Kerala and Tamil Nadu before merging with the Cauvery near Kodumudi

 

The Cauvery River is a vital source of water for irrigation, drinking, and industrial use. It is also an important source of hydroelectric power. The Cauvery River is a major economic and cultural resource for the people of South India

 

Image Source: Research Gate

 

5. Cauvery Water Management Authority (CWMA)

• The Cauvery Water Management Authority (CWMA) is a statutory body constituted by the Government of India under the Inter-State River Water Disputes Act, 1956.
• The CWMA is responsible for the implementation of the Cauvery Water Disputes Tribunal (CWDT) Award, as modified by the Supreme Court of India
• The CWMA has its headquarters in New Delhi. It has a governing council, which is headed by the Union Minister for Water Resources. The governing council also has representatives from the states of Karnataka, Tamil Nadu, Kerala, and Puducherry.
• The CWMA is a critical institution for the management of the Cauvery River basin. It is responsible for ensuring that the river's water is shared in a fair and equitable way, and that the river is managed in a sustainable manner.

 

 

For Prelims: Cauvery river, Tributaries, CWMA   For Mains: 1.The Cauvery River water dispute between Karnataka and Tamil Nadu has been a recurring issue. Discuss the historical background, key points of contention, and the legal and political measures taken to address this interstate water dispute   2.The Cauvery basin has played a significant role in the agricultural economies of Karnataka and Tamil Nadu. Examine the challenges and opportunities associated with the irrigation practices and water management strategies in the region

 

 

Previous Year Questions 1.Which of the following Protected Areas are located in Cauvery basin? (UPSC GS1, 2020) 1. Nagarhole National Park 2. Papikonda National Park 3. Sathyamangalam Tiger Reserve 4. Wayanad Wildlife Sanctuary Select the correct answer using the code given below: (a) 1 and 2 only (b) 3 and 4 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4 Answer (c)

 

 

Source: indianexpress

 

 

FOREIGN PORTFOLIO INVESTMENT (FPI)

 

 

 

1. Context

 

 After four straight months of selling, foreign investors turned net buyers of Indian equities in July, pumping in ₹20,200 crore, aided by attractive valuations, improving corporate earnings, and easing global headwinds. The latest inflow marks a sharp reversal from the preceding months when Foreign Portfolio Investors (FPIs) withdrew ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April, and a massive ₹1.17 lakh crore in March, according to data from the Central Depository Services (India) Ltd. (CDSL

 

 

2. What are foreign portfolio investors (FPI)?

 

 

• Foreign Portfolio Investors (FPIs) are overseas entities or individuals who invest in the financial assets of a country, such as shares, bonds, debentures, mutual funds, or other securities, without having direct control over the businesses they invest in.
• Unlike Foreign Direct Investment (FDI), which involves establishing a lasting interest in an enterprise, setting up facilities, or acquiring a controlling stake, FPIs are primarily concerned with earning returns from the movement of capital markets.
• Essentially, FPIs put their money into a country’s stock market or debt market to benefit from short- or medium-term price changes, dividends, or interest income.
• Their investment is often guided by considerations like the stability of the economy, growth prospects, interest rates, and global liquidity conditions.
• Because the money can be moved in and out relatively quickly, FPIs are often described as “hot money,” highlighting the fact that such investments can be highly volatile.
• In India, FPIs are regulated by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), which set the rules regarding eligibility, permissible investment limits, and reporting requirements
•  These investors can include foreign institutional investors such as pension funds, insurance companies, hedge funds, asset management companies, or even individual investors from abroad.
• Their participation is significant because it not only provides additional capital for companies and governments but also increases liquidity and depth in the financial markets.
• However, large-scale entry or exit of FPIs can impact stock prices, exchange rates, and overall financial stability

 

3. How is it different from foreign direct investment?

 

• That’s a very relevant follow-up. The key difference between Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI) lies in the nature, purpose, and level of control over the assets being invested in.
• Foreign Portfolio Investment (FPI) refers to investment in a country’s financial markets—such as equities, bonds, or other securities—without seeking management control or a lasting interest in the company.
• An FPI is more like buying shares on the stock exchange: the investor becomes a shareholder but has little or no say in how the company is run.
• The intention is usually to earn returns from dividends, interest, or capital gains, and the money can move in and out relatively quickly depending on market conditions. Because of this, FPIs are generally considered more volatile and speculative in nature.
• On the other hand, Foreign Direct Investment (FDI) involves investing directly in productive assets of another country, such as setting up factories, infrastructure projects, offices, or acquiring a significant stake in a company to gain management influence.
• The idea here is to establish a long-term business presence and contribute to the host country’s economic activities.
• FDI is more stable because it ties the investor to physical assets and operational responsibilities, making it less prone to sudden withdrawal compared to FPI.

 

In short: FPI is financial investment—short to medium term, market-driven, without control. FDI is business investment—long-term, with management control and significant impact on the host economy.

 

 

4. What is the significance of FPI?

 

 

• FPI brings in foreign capital into a country’s stock and debt markets, which increases the liquidity and depth of those markets. This makes it easier for domestic companies and governments to raise funds, since more investors are available to buy their securities.
• It also improves market efficiency, as the entry of sophisticated foreign investors often brings in better practices in valuation, analysis, and corporate governance.
• For the broader economy, FPIs are an important source of foreign exchange inflow. This helps strengthen the balance of payments, stabilizes the currency in times of pressure, and gives policymakers more room to finance trade deficits.
• For emerging economies like India, FPIs signal international confidence in the domestic economy. When foreign investors channel funds into Indian markets, it reflects their positive outlook on India’s growth potential, macroeconomic stability, and regulatory environment.
• However, FPIs are equally significant because of their volatility. Since FPI money can be withdrawn at short notice—depending on global interest rates, risk perception, or geopolitical conditions—large inflows or sudden outflows can cause swings in stock markets and currency values.
• For example, massive withdrawals of FPI funds may lead to a depreciation of the rupee and stock market instability, affecting both investors and the wider economy.

 

Positive side – boosts liquidity, deepens capital markets, brings foreign exchange, and reflects global confidence. Risk side – can cause volatility and expose the economy to sudden capital flight

 

 

5. What is Foreign capital paradox?

 

The Foreign Capital Paradox refers to the puzzling observation that capital (money for investment) does not always flow from rich countries to poor countries, even though economic theory suggests it should.

In theory, poorer countries, being capital-scarce, should offer higher returns on investment compared to rich countries where capital is already abundant and returns are relatively lower. Based on this logic, one would expect foreign capital—through FDI, FPI, or loans—to flow heavily into developing or low-income nations, helping them grow faster. This is consistent with the predictions of the neoclassical growth model.

However, in reality, the flow of capital is often the opposite. A large share of global investment moves among already rich, developed nations rather than toward poorer countries. Many developing countries actually see capital outflows instead of inflows, despite their greater need for funds. This mismatch between theory and reality is what economists call the “foreign capital paradox.”

 

One of the best-known explanations for this paradox comes from Robert Lucas (1990), often referred to as the Lucas Paradox. He argued that capital doesn’t flow as expected due to several factors: Institutional weaknesses in developing countries (weak governance, poor enforcement of contracts, corruption). Political instability and risk that discourage investors. Lack of human capital (skilled labor, technology absorption capacity) to complement physical capital. Poor infrastructure and underdeveloped financial markets. Policy uncertainty, such as sudden changes in taxation or restrictions on profit repatriation

 

 

For Prelims: Balance of payments (BOP), foreign portfolio investors (FPI),  foreign direct investment(FDI)   For Prelims: GS III - Economy

 

Previous Year Questions   1.Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly? (UPSC CSE 2019) (a) Certificate of Deposit (b) Commercial Paper (c) Promissory Note (d) Participatory Note Answer (d)   Participatory Notes (P-notes) are financial instruments issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to invest in Indian stock markets without directly registering with SEBI. They are essentially offshore derivative instruments, linked to Indian securities. For example, if an FPI buys shares of Infosys in India, it can issue a P-note to an overseas investor. That overseas investor will gain the benefits (returns) from Infosys’ shares without directly owning them in India. This route is often used by investors who want to save time and avoid the regulatory process of registration, though SEBI keeps a close watch on P-notes due to concerns about transparency and misuse

 

Source: Indianexpress

 

 

MONSOON IN INDIA

 

 

 

1. Context

 

After a significantly dry June and a poor start to the year’s monsoon season, July’s rainfall can be summed up as that of extremes. There were many rainy days during July, some of which went on to create historic records. But there were prolonged dry days, too.

 

2. What is a Monsoon?

 

A monsoon is a seasonal weather pattern characterized by changes in the direction of prevailing winds, which typically result in distinct wet and dry seasons. Monsoons are caused by the differential heating of land and sea, which creates pressure gradients that drive large-scale wind systems.

Key features of a monsoon include:

• Monsoons involve a significant shift in wind direction between seasons. During the wet season, winds blow from the ocean towards the land, bringing moist air and heavy rainfall. During the dry season, winds reverse direction, blowing from the land to the ocean, resulting in dry conditions
• The wet season is marked by heavy and sustained rainfall, often leading to flooding and lush vegetation growth. The dry season, in contrast, has little to no rainfall, leading to drought conditions in some regions
• Monsoons are most commonly associated with South Asia, particularly the Indian subcontinent. Other regions that experience monsoon patterns include Southeast Asia, parts of Africa, Australia, and the southwestern United States
• Monsoons play a crucial role in the climate and agriculture of affected regions. They provide essential water for crops and replenish groundwater supplies. However, they can also cause destructive flooding and landslides

3. Indian Monsoon

 

• The Indian monsoon is a significant and complex weather phenomenon that has a profound impact on the climate, agriculture, and economy of the Indian subcontinent one of the most well-known and studied monsoon systems is the Indian monsoon, which significantly affects the climate and economy of India and its neighbouring countries.
• Southwest Monsoon: Occurs from June to September. Winds blow from the southwest, bringing moisture-laden air from the Indian Ocean, resulting in heavy rainfall over the Indian subcontinent.
• Northeast Monsoon: Occurs from October to December. Winds blow from the northeast, bringing drier air, although the southeastern coast of India and Sri Lanka receive some rainfall during this period.

4. Monsoon basics and dates

 

• The Southwest Monsoon from June to September delivers over 70% of India's annual rainfall. Typically, the monsoon reaches the Andaman Sea in the third week of May and moves onto the mainland through Kerala, with June 1 being the usual start date.
• Its progression is characterised by surges, advancing rapidly to central India before slowing down.
• By the end of June, it generally reaches north Uttar Pradesh, Delhi, and surrounding areas, covering the entire country by July 15. An early or timely onset does not ensure consistent or adequate rainfall throughout the season, nor does a delayed onset necessarily lead to below-average rainfall.
• The total rainfall from June to September is influenced by various factors and exhibits natural year-to-year variability, making each monsoon season unique. The distribution of rainfall is as important as the total amount.
• The India Meteorological Department (IMD) predicts 'above normal' rainfall for this season, estimated to be 106% of the Long Period Average of 880 mm (based on 1971-2020 data).
• This forecast of increased rainfall is largely due to the expected development of La Niña conditions, which typically enhance the Indian monsoon, and a positive phase of the Indian Ocean Dipole (IOD)

 

5.Branches of Indian Monsoon

The Indian Monsoon is broadly divided into two main branches, each with distinct characteristics and regions of influence: the Arabian Sea Branch and the Bay of Bengal Branch.

Arabian Sea Branch

Characteristics:

• Source: Originates from the southwestern part of the Arabian Sea.
• Path: Moves towards the western coast of India.
• Onset: Typically hits the Kerala coast around June 1st, marking the official start of the Southwest Monsoon.

Key Features:

• Western Ghats: The moist air from the Arabian Sea rises when it encounters the Western Ghats, causing heavy rainfall on the windward side.
• Progression: Advances northwards along the western coast, bringing significant rainfall to regions such as Goa, Karnataka, Maharashtra, and Gujarat.
• Reach: Extends into central and northwestern India, contributing to the monsoon rains in these areas.

Bay of Bengal Branch

Characteristics:

• Source: Originates from the southeastern part of the Bay of Bengal.
• Path: Moves towards the eastern coast of India and then travels northwestwards.

Key Features:

• Northeastern India: Initially brings heavy rainfall to northeastern states such as Assam, Meghalaya, and West Bengal as it hits the Eastern Himalayas.
• Progression: Moves across the Indo-Gangetic Plain, covering Bihar, Uttar Pradesh, and eventually reaching northern India including Delhi.
• Distribution: Influences the monsoon patterns in central and northern India, often merging with the Arabian Sea branch to provide widespread rainfall.

 

6.Factors affecting Indian Monsoon

Coriolis Force

The Coriolis Force is an apparent force resulting from the Earth's rotation. It influences the rotational movement seen in tropical cyclones, causing monsoon winds to deflect eastward and blow from the southwest to the northeast. Since the Earth's rotation is constant, the Coriolis Force experienced by air at a specific latitude and velocity remains steady.

Mascarene High

The Mascarene High is a significant high-pressure zone that drives the southwest monsoon winds toward the Indian subcontinent. Forming by mid-April, the strength of this high-pressure area is crucial in determining the intensity of the Indian monsoon. A stronger high leads to stronger winds and a more robust monsoon. A delayed formation of the Mascarene High can result in a delayed onset of the monsoon in India.

Indian Summer

High-pressure winds move towards low-pressure areas. The Himalayas play a key role in summer heating by blocking cold northern air, allowing for warmer conditions. During summer, India becomes extremely hot, and surrounding ocean temperatures rise. This creates a pressure gradient between the cooler sea air and the warmer land air, particularly over Rajasthan. Consequently, monsoon winds are drawn towards the low-pressure area over India.

Indian Ocean Dipole

In 1999, N.H. Saji and colleagues from Japan’s University of Aizu identified the Indian Ocean Dipole (IOD), an ENSO-like phenomenon in the Indian Ocean. The IOD has three phases: positive, negative, and neutral. During the positive IOD phase, sea surface temperatures in the western Indian Ocean are warmer than in the eastern part. Conversely, during the negative phase, the eastern Indian Ocean is warmer. No significant gradient exists during the neutral phase. Positive IOD phases are associated with significantly higher Indian summer monsoon rainfall compared to negative IOD phases.

El Niño

El Niño refers to the occasional appearance of a warm ocean current off the coast of Peru, temporarily replacing the cold Peruvian current. Named after the infant Christ ("El Niño" means "the child" in Spanish) because it occurs around Christmas, El Niño leads to increased sea-surface temperatures and reduced trade winds in the region.

El Niño Southern Oscillation (ENSO)

The El Niño Southern Oscillation (ENSO) describes the cyclic variations in sea surface temperatures around the equatorial Pacific Ocean. ENSO's unpredictable nature has long challenged forecasters. It affects global weather patterns, especially in countries bordering the Pacific Ocean, by influencing air circulation.

Intertropical Convergence Zone (ITCZ)

The ITCZ is a broad low-pressure area found in equatorial latitudes where the northeast and southeast trade winds converge. This zone shifts north and south following the sun’s apparent movement. The position and strength of the ITCZ significantly affect the Indian Monsoon.

Tropical Easterly Jet (TEJ)

The TEJ plays a crucial role in initiating the southwest monsoon. This jet stream flows over the Indian Ocean near Madagascar, intensifying the high-pressure cell and triggering the southwest monsoon. Persistent high summer temperatures over Tibet help develop the easterly jet, leading to heavy rainfall in India. Conversely, if the Tibetan Plateau retains its snow cover, the easterly jet does not form, resulting in reduced monsoon rainfall in India. Thus, years with extensive snow in Tibet are typically followed by weaker monsoons and less rainfall

 

 

 

For Prelims: Southwest monsoon El Nino, Coriolis Force For Mains: GS I- Monssons and their effects on Indian Agriculture

 

Source: Indianexpress

 

 

INDEX OF INDUSTRIAL PRODUCTION (IIP)

 

1. Context

Earlier this week, the Ministry of Statistics and Programme Implementation released the recently updated Index of Industrial Production (IIP) data. It showed that the IIP grew by 7.3% year-on-year (YoY) in June 2026. 

2. About the Index of Industrial Production (IIP)

• The Index of Industrial Production (IIP) is a macroeconomic indicator that measures the changes in the volume of production of a basket of industrial goods over some time.
• It is a composite index that reflects the performance of the industrial sector of an economy.
• The IIP is compiled and released by the Central Statistical Organisation (CSO) in India.
• The IIP is calculated using a Laspeyres index formula, which means that the weights assigned to different industries are based on their relative importance in a base year. The current base year for the IIP is 2011-12.
• The eight core sector industries represent about 40% of the weight of items that are included in the IIP.
• The eight core industries are Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement and Fertilizers.
• It covers 407 item groups included into 3 categories viz. Manufacturing, Mining and Electricity.
• The IIP is a useful tool for assessing the health of the industrial sector and the overall economy.
• It is used by policymakers, businesses, and investors to track trends in industrial production and make informed decisions.

3. Significance of IIP

The IIP is a significant economic indicator that provides insights into the following aspects

• The IIP reflects the growth or decline of the industrial sector, which is a major contributor to overall economic growth.
• The IIP measures the level of industrial activity, indicating the production volume of various industries.
• The IIP serves as a guide for policymakers to assess the effectiveness of economic policies and make informed decisions.
• Businesses use the IIP to assess market conditions, make production plans, and evaluate investment opportunities.
• The IIP influences investor sentiment as it reflects the overall health of the industrial sector.

4. Service Sector and IIP

• The IIP does not include the service sector. It focuses on the production of goods in the industrial sector, such as manufacturing, mining, and electricity.
• The service sector is measured by a separate index, the Index of Services Production (ISP).
• The IIP data is released monthly by the Central Statistical Organisation (CSO) in India.
• The data is released with a lag of six weeks, allowing for the collection and compilation of information from various industries.

5. Users of IIP Data

The IIP data is used by a wide range of stakeholders, including:

• Government agencies and central banks use the IIP to assess economic conditions and formulate policies.
• Companies use the IIP to evaluate market trends, make production decisions, and assess investment opportunities.
• Investors use the IIP to gauge the health of the industrial sector and make investment decisions.
• Economic analysts and researchers use the IIP to study economic trends and develop forecasts.
• The IIP is widely reported in the media and is of interest to the general public as an indicator of economic performance.

6. Manufacturing Drives Industrial Production Growth

• Factory output gained on the back of a 9.3 per cent increase in manufacturing, which accounts for 77.6 per cent of the weight of the IIP (Index of Industrial Production).
• Manufacturing output had grown by 5 per cent in July and had contracted by 0.5 per cent in August 2022.
• In absolute terms, it improved to 143.5 in August from 141.8 in July and 131.3 in the year-ago period.
• As per the IIP data, seven of the 23 sectors in manufacturing registered a contraction in August, with furniture, apparel, and computer and electronics among the significant non-performers.
• Among the performing sectors, fabricated metal products, electrical equipment and basic metals fared better.
• Garments and chemicals witnessed negative growth. This can be attributed to lower growth in exports as these two are export-dependent.
• The electronics industry also witnessed negative growth, which again can be linked to existing high stocks and lower export demand.
• In terms of the use-based industries, consumer durables output returned to positive territory for the second time this fiscal with 5.7 per cent growth in August, reflecting a pickup in consumption demand.
• However, it came on the back of a 4.4 per cent contraction in consumer durables output in the year-ago period.
• Primary, infrastructure/ construction, and capital goods recorded double-digit growth rates in August at 12.4 per cent, 14.9 per cent and 12.6 per cent, respectively.

 

For Prelims: The Index of Industrial Production (IIP), Central Statistical Organisation,  For Mains:  1. Discuss the significance of the Index of Industrial Production (IIP) as an economic indicator and its role in assessing the health of the industrial sector and the overall economy. (250 Words)

 

 

Previous Year Questions   1. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries? (UPSC CSE 2012) 1. Cement 2. Fertilizers 3. Natural gas 4. Refinery products 5. Textiles Select the correct answer using the codes given below: A. 1 and 5 only       B. 2, 3 and 4 only           C. 1, 2, 3 and 4 only         D. 1, 2, 3, 4 and 5   Answer: C

 

 

Source: indianexpress

 

 

PROJECT TIGER

1. Context 

 Central India’s key tiger corridor between the Satpura and Melghat tiger reserves stands to be fragmented because in-principle wildlife clearance for a third railway line between Jujharpur and Chichonda in Madhya Pradesh has been recommended by the Standing Committee of the National Board for Wildlife (SC-NBWL).

 

2. About Project Tiger

• The Government of India launched "Project Tiger" on 1st April 1973 to promote the conservation of the tiger.
• Project Tiger has been the largest species conservation initiative of its kind in the world.
• While the field implementation of the project, protection and management in the designated reserves is done by the project States, who also provide the matching grant to recurring items of expenditure, deploy field staff/officers and give their salaries, the Project Tiger Directorate of the Ministry of Environment and Forests was mandated with the task of providing technical guidance and funding support.

3.Origin of Project Tiger

• In 1972, India implemented the Wildlife (Protection) Act (WLPA), which established 'National Parks' within designated forests, transferring the rights of forest-dwellers to the State government. It also introduced 'Wildlife Sanctuaries' where limited rights could be exercised. The launch of Project Tiger stemmed from these changes.
• Initially, there were nine tiger reserves spanning 9,115 sq. km in 1973. Presently, there are 54 reserves across 18 States, covering 78,135.956 sq. km. Critical Tiger Habitats (CTH) make up 26% of National Parks and Wildlife Sanctuaries, totaling 42,913.37 sq. km. As of 2022, data from camera-trap methods estimated the tiger population in India to be between 3,167 to 3,925.
• The creation of CTHs aimed to allocate specific forest areas for tiger-centric initiatives. These areas were accompanied by Buffer Areas, a blend of forest and non-forest land. However, the 'fortress conservation' approach, despite its inclusive agenda for the Buffer Area, led to the displacement of people who had coexisted with tigers for generations

4. What is Critical Wildlife Habitat’ (CWH)?

A 'Critical Wildlife Habitat' (CWH) refers to a specific area within a protected region or sanctuary that is identified and demarcated for the conservation and protection of a particular wildlife species or multiple species.

These areas are recognized for their crucial importance in providing habitats, breeding grounds, or essential resources necessary for the survival and well-being of endangered or vulnerable wildlife populations. CWH designations aim to ensure the preservation of these habitats and their ecological balance by implementing stricter conservation measures and regulations to safeguard the wildlife within those areas

5. Tiger Task Force

• The implementation of Project Tiger over the years has highlighted the need for a statutory authority with legal backing to ensure tiger conservation.
• Based on the recommendations of the National Board for Wild Life Chaired by the Hon'ble Prime Minister, a Task Force was set up to look into problems of tiger conservation in the country.
• The recommendations of the said Task Force, interalia include strengthening Project Tiger by giving it statutory and administrative powers, apart from creating the Wildlife Crime Control Bureau.
• It has also been recommended that an annual report should be submitted to the Central government for laying in Parliament, so that commitment to Project Tiger is reviewed from time to time, in addition to addressing the concerns of local people. 

Broadly the urgent recommendations of the said Task Force are

1. Reinvigorating the constitution of governance.
2. Strengthening efforts towards the protection of tigers, checking to poach, convicting wildlife criminals and breaking the international trade network in wildlife body parts and derivatives.
3. Expanding the undisturbed areas for tigers by reducing human pressure.
4.  Repair the relationship with local people who share the tiger's habitat by fielding strategies for coexistence.
5. Regenerate the forest habitats in the fringes of the tiger's protective enclaves by investing in forest, water and grassland economies of the people.

6. National Tiger Conservation Authority (NTCA)

• Considering the urgency of the situation, Project Tiger has been converted into a statutory authority (NTCA) by providing enabling provisions in the Wild Life (Protection) Act, 1972 through an amendment, viz. Wild Life (Protection) Amendment Act, 2006.
• This forms one of the urgent recommendations of the Tiger Task Force appointed by the Prime Minister.
• The NTCA addresses the ecological as well as administrative concerns for conserving tigers, by providing a statutory basis for the protection of tiger reserves, apart from providing strengthened institutional mechanisms for the protection of ecologically sensitive areas and endangered species.
• The Authority also ensures enforcing guidelines for tiger conservation and monitoring compliance of the same, apart from the placement of motivated and trained officers having good track records as Field Directors of tiger reserves.
• It also facilitates capacity building of officers and staff posted in tiger reserves, apart from a time-bound staff development plan.
• The Wild Life (Protection) Amendment Act, 2006 has come into force with effect from the 4th of September, 2006 and the NTCA has also been constituted on the same date.

For Prelims & Mains

For Prelims: Project Tiger, Tiger Task Force, Wild Life (Protection) Act, 1972,  Wild Life (Protection) Amendment Act, 2006, Global Tiger Summit, National Tiger Conservation Authority, For Mains: 1. Discuss the Role of the National Tiger Conservation Authority in increasing the tiger population in India. Explain the significance of the Tigers in the Ecosystem. (250 Words)

Previous Year Questions

1. The term ‘M-STRIPES’ is sometimes seen in the news in the context of (UPSC 2017) (a) Captive breeding of Wild Fauna (b) Maintenance of Tiger Reserves (c) Indigenous Satellite Navigation System (d) Security of National Highways Answer: (b) 2.  Consider the following statements: (UPSC 2014) 1. Animal Welfare Board of India is established under the Environment (Protection) Act, of 1986. 2. National Tiger Conservation Authority is a statutory body. 3. National Ganga River Basin Authority is chaired by the Prime Minister. Which of the statements given above is/are correct? (a) 1 only    (b) 2 and 3 only    (c) 2 only    (d) 1, 2 and 3 Answer: (b) 3. Which one of the following is the well-publicized wildlife campaign in the world launched in 1973? (BPSC 2023)  1. Sunderbans 2. Project Project 3. Tiger Lion Project 4. More than one of the above 5. None of the above Answer: 2

Source: Tigernet.nic.in