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2023 09 22

Table of Contents:

GS Paper 2:

  1. Three Years of Abraham Accords
  2. ICRIER Report: Leveraging E-commerce for the Growth of MSMEs

GS Paper 4:

  1. Ethics and Outer Space

Content for Mains Enrichment

  1. Carrying Capacity Assessment

Facts for Prelims (FFP)

  1. Formation of Pink Diamond
  2. ‘Bima Sugam’ online platform
  3. Gravitational Instabilities and Galaxy Evolution
  4. Marine Tardigrade
  5. Mithun (‘Food Animal’)
  6. Agumbe Rainforest Complex (ARC)

Mapping

  1. Tungareshwar Wildlife Sanctuary

Three Years of Abraham Accords

GS Paper 2

Syllabus: Geopolitics of world powers

Source: TH

Context: The article discusses the significance of the Abraham Accords, a series of agreements between Israel and various Arab nations, which have led to improved regional ties and opportunities.

What is Abraham Accord? 

Brokered by the USA, the Abraham Accord (2020) is a normalization agreement between the UAE and Israel to establish formal diplomatic relations. The accord was later joined by Bahrain, Sudan, and Morocco and in exchange Israel would suspend its plans to annex parts of the occupied West Bank. With this accord, UAE becomes the third Arab nation to recognize Israel after Egypt (in 1979) and Jordan (1994)

Significance of the Abraham Accords:

Significance Details
Stable West Asia Decision to promote a stable future for West Asia.
The Abraham Accord agreements bring people together, despite differences in language, religious beliefs, cultures, and more.
Trade Cooperation Trade between Israel and other West Asian countries increased by 74% between 2021 and 2022.
Tourism, mostly non-existent in the past, has skyrocketed. In 2021, visits from Israel to the UAE increased by 172%.
Commercial and Energy Cooperation The Prosperity Green & Blue agreement between Israel, the UAE, and Jordan determined that a solar field to supply 600 megawatts of electricity to Israel and a desalination plant in Israel would deliver 200 million cubic meters of water to Jordan.
Abraham Accord for Stability In a region where 65% of the population is under 30 years of age, providing the younger generation with opportunities is a key factor in preventing instability.
The Abraham Accord encourages collaboration and education
The UAE incorporated Holocaust education into its school curriculum as a mandatory subject, fostering coexistence and religious tolerance.

About ‘New QUAD’:

Mohammed Soliman, An Egyptian scholar, was the first to propound the idea of the “Indo-Abrahamic Accord” and its trans-regional implications to the west of India. The first meeting between the foreign ministers of India, Israel, the United Arab Emirates, and the United States is being widely called a new QUAD or QUAD of the Middle East on the lines of the Abraham Accord.

Significance of Abraham Accord for India: 

Significance Details
Economic Cooperation Substantial increase in the commercial collaborations between companies from the UAE, Israel, Bahrain, and the U.S., partnering with the Indian private sector
Opportunities for Students Indian students are enjoying increased ease of travel, gaining improved access to universities and the opportunity to explore international study programmes.
Regional Connectivity Abraham Accords improved regional connectivity among member countries, benefiting Indians.
Indian diaspora in the Gulf can now fly directly from the UAE to Israel or from Israel to Bahrain.
Technology Cooperation Potential for collaboration in various areas, from space to defence technology, between India, UAE, and Israel.
Geopolitical Engagement India’s engagement in the new “Quad” in the Middle East, bridging the Arab-Israeli rift, served as a non-ideological engagement with the Middle East.
Extended Neighbourhood Engagement opens opportunities to collaborate with other regional partners like Egypt, expanding India’s impact in the region.
Peace and Stability The agreement fosters rapprochement between traditional adversaries in West Asia, Israel, and the Arab states, providing a platform for India’s engagement.
Group Formation The Accords facilitated the formation of the I2U2 Group, established by Israel, India, the UAE, and the United States.

Conclusion:

The opportunities for India to the west of the Subcontinent are as significant as those that have recently emerged in the east like QUAD, which has changed the way India had transformed the way it thinks of the “Indo-Pacific”, the notion of a “Greater Middle East” can provide myriad opportunities to India’s engagement with the extended neighbourhood to the west.

Insta Links

I2U2 Summit

Mains Links

The opportunities that are coming India’s way to the west of the Subcontinent are as consequential as those that have recently emerged in the east. Discuss the statement in the context of the Abraham Accord and its significance for India. (15M)

September 22, 2023 /22 September 2023Three Years of Abraham AccordsToday's Article

ICRIER Report: Leveraging E-commerce for the Growth of MSMEs

GS Paper 3

Syllabus: Manufacturing Sector

Source: ICRIER

Context: The report titled “Annual Survey of Micro, Small, and Medium Enterprises (MSMEs) In India: Leveraging E-commerce for the Growth of MSMEs” conducted a comprehensive survey of MSMEs in India to explore the potential of e-commerce in enhancing their growth.

What are MSMEs? 

Micro, Small and Medium Enterprises [“MSMEs”] are small to medium-sized businesses that typically have a limited number of employees and generate moderate levels of revenue.

MSMEs are defined or classified in accordance with the MSME Development Act of 2006.

Micro Small Medium
Manufacturing and Services Investment: < 1 crore

Turnover: < 5 crore
Investment: < 10 crore

Turnover: < 50 crore
Investment: < 50 crore

Turnover: < 250 crore

Status of MSMEs in India:

  • Around 19 million MSMEs which employ over 131 million (over 13 crore) individuals are registered on the Udyam portal of which about 96 % are classified as micro, about 3 % as small, and 0.4% as medium enterprises.
  • 27% of the MSMEs are engaged in manufacturing and 73% are in services

Significance of E-Commerce integration:

  • Successful integration with the E-commerce platform has reported an increase in sales. Integrated firms report higher turnovers and profitability.
  • Integrated firms have a higher share of permanent employees

Significance of MSMEs

Economic transformation:

Key Benefits Description
Employment generation MSMEs create significant job opportunities, especially for unemployed youth, due to low start-up costs.
Economic stability and export growth They contribute significantly to India’s GDP and play a crucial role in the country’s exports, contributing about 40% to overall exports.
Reducing regional imbalance MSMEs promote industrialization in rural and backward areas, reducing regional disparities and ensuring a more equitable distribution of income and wealth.
Complementary to large industries They often serve as ancillary units, supplying semi-finished and auxiliary products to larger companies, fostering a linkage between MSMEs and big corporations.
Diversity India’s MSME sector is highly diverse in terms of size, technology use, product range, and target markets.
Innovation MSMEs encourage innovation by providing opportunities for entrepreneurs to develop creative products, fostering competition and growth.
Poverty Alleviation MSMEs have played a significant role in reducing poverty by providing employment to disadvantaged sections of society.

Social transformation:

Key Benefits Description
Female empowerment About 20% of MSMEs in India are women-owned, providing a platform for female participation and development.
Income distribution MSMEs, as a labour-intensive sector employing both genders, increase purchasing power and contribute to income redistribution.
Demographic dividend India’s large number of graduates and engineers benefit from MSMEs, which can absorb a significant portion of fresh talent each year.
Inclusive growth MSMEs contribute to infrastructural development, reducing income gaps between rural and urban areas. They also help prevent rural-to-urban migration by creating jobs in rural regions.
Better income Evidence suggests that small enterprises, including MSMEs, offer better job stability, higher wages, and improved benefits, particularly for unskilled labour, leading to increased income and savings for the workforce.
Social inclusion MSMEs enhance socio-economic conditions, support the national economy, and provide employment, fostering social inclusion and community development.

Challenges to MSMEs

Challenges Description
Challenges in integrating with E-Commerce sites Lack of knowledge and digital illiteracy; Lack of digital infrastructure; Lack of access to skilled labour
Financial challenges Less than 5% of MSMEs have access to institutional credits.
Lack of creditworthiness among MSMEs.
The bias of investors towards service-based MSMEs
Financial distress due to events like demonetization, GST, and COVID-19
Higher operating costs due to low economies of scale, affecting competitiveness
Labour Difficulty in attracting skilled labour
Lack of social security net for over 90% of unorganized MSMEs employees
Infrastructure and Technology Concerns Challenges in access to basic amenities, like a constant power supply for semi-urban and rural MSMEs
High land and labour costs for urban MSMEs
Use of outdated technology or slow technology adoption.
Government Policy Withdrawal of incentives when MSMEs outgrow the prescribed limits in the MSME Act, leading to ‘dwarfism.’
Complex entry and exit norms
Challenges in tax and legal compliance and clearance
Market Low competitiveness of Indian MSMEs and competition from multinational corporations
Delayed payments from customers
Continued reliance on middlemen for marketing.

Government Initiatives

  • MSME Definition Revision: Expanded to promote growth without losing incentives.
  • CHAMPIONS Portal: Provides information, grievance redressal, and integration.
  • RAMP: COVID resilience and recovery support.
  • Finance: Emergency Credit Line, PM Mudra Yojana, equity infusion.
  • Technology Upgradation: Credit Linked Capital Subsidy Scheme.
  • Udyam portal provides MSMEs with a permanent registration and basic identification number.

For 72% of MSMEs stagnant since past 5 years: Survey: Click Here

Conclusion

In pursuit of MSME sustainability, RBI’s UK Sinha-led committee suggests key measures:

  • Periodic MSME definition updates
  • Tackling delayed payments
  • Mandating government procurement from MSMEs
  • Offering marketing, technical, and financial support
  • Promoting cluster-based approaches
  • Implementing an easy exit policy.

Prelims Link:

Which of the following can aid in furthering the Government’s objective of inclusive growth? (UPSC 2012)

  1. Promoting Self-Help Groups
  2. Promoting Micro, Small, and Medium Enterprises
  3. Implementing the Right to Education Act

Select the correct answer using the codes given below:

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Answer: D

September 22, 2023 /22 September 2023ICRIER ReportLeveraging E-commerce for the Growth of MSMEsToday's Article

Ethics and Outer Space

GS Paper 4

Source: TH

Context: After the success of Chandrayaan – 3 there have been discussions on the ethical frontiers of space exploration.

  • Ethics in outer space exploration is a critical and evolving consideration as humanity continues to expand its presence beyond Earth’s boundaries.

Several key ethical principles and challenges are associated with outer space activities:

  • Peaceful Use of Outer Space: One of the foundational principles of space ethics, as enshrined in the Outer Space Treaty of 1967, is the commitment to using outer space for peaceful purposes. This principle aims to prevent the weaponization of space and the potential for armed conflict in this new frontier.
  • Common Heritage of Mankind: The Moon Agreement, adopted in 1979, established the idea that celestial bodies like the moon and their resources should be considered the common heritage of all humanity.
  • Environmental Responsibility: As space activities increase, so does the risk of space debris, which poses a hazard to both operational satellites and future missions.
  • Planetary Protection: When exploring other celestial bodies, especially those with the potential for past or present extra-terrestrial life, planetary protection principles must be followed.
  • Transparency and Information Sharing: Nations and organizations engaged in space exploration should share information about their missions, including launch plans, trajectories, and orbital data, to ensure safety and avoid collisions.
  • Resource Utilization: There’s a need to establish guidelines for responsible resource utilization to prevent over-exploitation and ensure that benefits are shared fairly.
  • Space Tourism and Access: As commercial space tourism becomes a reality, ethical questions arise concerning accessibility, affordability, and safety for space tourists.
  • Space Governance and Regulation: Establishing governance mechanisms for space activities and ensuring that international laws and agreements are respected are ethical imperatives.
  • Global Collaboration: Ethical space exploration requires international collaboration to address common challenges and promote the responsible use of space.

Ethical considerations in outer space exploration encompass a broad range of principles, from preventing the militarization of space to ensuring equitable access and resource utilization. As humanity’s activities in space continue to expand, these ethical principles will play a crucial role in shaping the future of space exploration and ensuring that it benefits all of humanity while minimizing harm to the cosmos.

Insta Links:

Indian Space Policy 2023

September 22, 2023 /197922 September 2023Ethics and Outer SpaceGS4Moon AgreementOuter Space Treaty of 1967Today's Article

Carrying Capacity Assessment

Content for Mains Enrichment

Source: DTE

Carrying Capacity Assessment is a tool for protecting hilly areas through sustainable tourism. It highlights the growth of tourism globally and its impacts, both positive and negative, on hilly regions.

What is Carrying capacity?

It refers to the maximum number of people a tourist destination can accommodate without harming the environment or the quality of visitor satisfaction.

Five components of carrying capacity:

Component Definition Example
Physical Carrying Capacity (PCC) The maximum number of people a destination can physically accommodate without causing harm or degradation. The national park can handle 1,000 visitors per day based on available parking and trails.
Social Carrying Capacity (SCC) The perceptual and psychological capacity of a place, considering visitor experience and impact on local residents. Quiet beach town maintains a tranquil atmosphere with a limited number of visitors.
Infrastructure Carrying Capacity (ICC) The capacity of man-made facilities (hotels, parking, etc.) to support tourism activities. Ski resorts can handle a certain number of skiers based on available lifts and lodges.
Environmental Carrying Capacity (ECC) Number of tourists a site can sustain without harming the natural environment. The fragile coral reef has a low ECC to protect it from damage by snorkelers or divers.
Economic Carrying Capacity (ECC) The balance between tourism’s economic impact and the local economy benefits businesses without overwhelming them. The small tourist-dependent town has an ECC to ensure economic benefits while maintaining community well-being.

Use: The term can be used in Sustainable Tourism/Environment related questions.

September 22, 2023 /22 September 2023Carrying capacityToday's Article

Formation of Pink Diamond

Facts for Prelims (FFP)

Source: Earth

Context: Western Australian scientists have connected pink diamond formation to the Earth’s first supercontinent (Vaalbara or Nuna) and events 1.3 billion years ago.

What are pink diamonds?

Pink diamonds are a rare and highly coveted type of diamond known for their stunning pink or reddish-pink colour. Pink diamonds are exceptionally rare, and their rarity, combined with their captivating beauty, makes them extremely valuable.

How it is unique?

Pink diamonds get their distinct colour from unique structural irregularities in the crystal lattice of the diamond, rather than impurities like nitrogen or boron, which give other coloured diamonds their hues (such as in the case of Yellow and blue diamonds)

Where is it found?

The Argyle diamond mine in Western Australia was one of the primary sources of pink diamonds (over 90% of production), although it ceased production in 2020. Pink diamonds from the Argyle mine were particularly famous for their quality and colour intensity.

What does the study indicate?

Pink diamonds were formed as a result of the breakup of Earth’s first supercontinent, Vaalbara, through intense geological forces from colliding tectonic plates that caused their crystal lattices to twist and bend. The critical event that turned once-colourless diamonds into pink was a monumental collision between Western Australia and Northern Australia.

September 22, 2023 /22 September 2023Pink Diamond formationToday's Article

‘Bima Sugam’ online platform

Facts for Prelims (FFP)

Source: HT

Context: The Insurance Regulatory and Development Authority of India (IRDAI) is creating the ‘Bima Sugam’ online platform, which is described as a ‘game-changer’ and a ‘UPI moment’ for the insurance sector.

Benefits of the portal:

  • It will serve as a one-stop destination for insurance-related needs, including policies, portability, agent changes, and claims.
  • Buyers can directly purchase life, motor, or health policies through web aggregators, brokers, banks, and insurance agents. Insurance companies will be major shareholders in the platform, which will offer services via an ‘e-insurance account’ (E-IA).
  • The platform aims to centralize data, facilitate policy porting, offer a wide range of policy choices, reduce intermediary commissions, and enable the acceptance of new products.
  • The launch date for Bima Sugam is set for June 2024, following delays from the original deadlines.

Ownership: Life insurance and general insurance companies will own a 47.5 per cent stake each, while brokers and agent bodies will own 2.5 per cent each.

IRDAI (Bima Trinity of the policy):

  • 1st element is Bima Sugam
  • 2nd element is Bima Vistar:It will be a bundled risk cover product, which offers defined benefits for each risk and aims to provide faster claim payouts without the need for surveyors.
  • 3rd element is Bima Vaahaks: The third component of the plan involves deploying a women-centric workforce called Bima Vaahaks (carriers) in each Gram Sabha (village council) to promote the benefits of insurance products.

Other plans:

  • State-level insurance committees: To achieve the goal of providing insurance coverage for all citizens by 2047, the IRDA plans to establish State-level insurance committees and involve State governments in formulating district-level insurance plans.
  • Amendment to insurance laws (Insurance Act, 1938) to allow differentiated capital requirements for niche insurers, attract more investments, and enable the addition of value-added services to insurance policies.

About IRDAI

The Insurance Regulatory and Development Authority of India (founded 1999; HQ: Hyderabad) is a statutory body (under the IRDA Act 1999) and is under the jurisdiction of the Ministry of Finance and is tasked with regulating and licensing the insurance and re-insurance industries in India.

September 22, 2023 /22 September 2023Bima SugamBima TrinityIRDAIToday's Article

Gravitational Instabilities and Galaxy Evolution

Facts for Prelims (FFP)

Source: TH

Context: A study conducted by the Indian Institute of Astrophysics (IIA) aims to understand the connection between gravitational instabilities and galaxy evolution.

What are Gravitational Instabilities?

Gravitational instabilities refer to disruptions or fluctuations in the gravitational forces within a celestial object, such as a galaxy or a cloud of gas and dust. These instabilities can lead to the formation of structures like stars, planets, or galaxies as matter clumps together under the influence of gravity.

Findings of the study:

  • The study shed light on the role of dark matter in regulating galaxy stability.
  • It found that gravitational instabilities in spiral galaxies like the Milky Way rapidly convert gas into stars, depleting gas reservoirs.
  • This led to higher star formation rates, lower stability, and lower gas fraction in such galaxies.

How are galaxies formed?

Stage Description
1. Primordial Matter Cosmic matter, including hydrogen and helium, is evenly distributed throughout the universe.
2. Gravitational Attraction Gravity causes slightly denser regions to form from the cosmic matter.
3. Protogalactic Clouds Denser regions accumulate gas, dust, and dark matter through gravity.
4. Star Formation Protogalactic clouds fragment into smaller clumps, giving birth to stars.
5. Galaxy Formation Stars within the clouds begin to orbit a common centre of mass, forming a galaxy.
6. Galaxy Types The type and appearance of the galaxy (spiral, elliptical, irregular) depend on various factors.

September 22, 2023 /22 September 2023Galaxy EvolutionGravitational InstabilitiesToday's Article

Marine Tardigrade

Facts for Prelims (FFP)

Source: TH

Context: Researchers at the Cochin University of Science and Technology (Cusat) have discovered a new species of marine tardigrade in Mandapam, south-east Tamil Nadu.

This tiny creature, measuring in micrometres, is known for its resilience and survival abilities and is often referred to as a ‘water bear.‘ The newly identified species belong to the genus Batillipes and has been named Batillipes kalami in honour of the late former President and scientist A.P.J. Abdul Kalam.

About Tardigrade:

Tardigrades are tiny eight-legged animals that are extremophiles, capable of surviving in extreme conditions for up to 30 years without food or water. When faced with harsh environments, they enter a state of suspended animation called the “tun” state, where their bodies dry out and appear lifeless. Their diet primarily consists of plants, but some tardigrades are predatory carnivores. Tardigrades can be found in various ecosystems beyond just aquatic environments.

Significance: This discovery is significant as it is the second marine tardigrade found in Indian waters and the first on the East Coast. It is also the first taxonomically described species of the genus Batillipes from India.

September 22, 2023 /22 September 2023Batillipes KalamiMarine TardigradeToday's Article

Mithun (‘Food Animal’)

Facts for Prelims (FFP)

Source: IE

What are ‘Food Animals’?

A ‘food animal’ refers to an animal species that is raised and utilized for human consumption as food. This category includes livestock like cattle, poultry, and pigs, and now, in the case of the Mithun in Northeast India, certain indigenous animals have been officially recognized as suitable for human consumption.

Benefits of Recognition:

  • This recognition has opened up opportunities for farmers and tribal communities to benefit commercially from the sale and processing of Mithun meat.
  • Traditionally reserved for special occasions, Mithun meat can now be sold in the market, offering economic potential for farmers.
  • Efforts include training farmers in better Mithun care and promoting Mithun products in regions beyond their traditional consumption areas.

September 22, 2023 /‘Food Animal’22 September 2023MithunToday's Article

Agumbe Rainforest Complex (ARC)

Facts for Prelims (FFP)

Source: DTE

Context: The Agumbe Rainforest Complex (ARC) in Karnataka, known for its high rainfall, has seen a decline in its peak monsoon rainfall over the past two years, losing its reputation to lesser-known towns in the Udupi district.

Agumbe has historically been famous for receiving over 8,000 mm of rainfall during the monsoon and was nicknamed the ‘Cherrapunji of the South.’ However, towns like Nadpal and Mudradi in Udupi district have recorded higher rainfall than Agumbe recently.

September 22, 2023 /22 September 2023AgumbeToday's Article

Tungareshwar Wildlife Sanctuary

Mapping

Source: FPJ

Context: The Surya Regional Water Supply Project in Mumbai has achieved a significant breakthrough by completing the tunnelling work of the Tungareshwar tunnel.

Aspect Description
Location Located on a plateau east of Vasai and Virar in the Palghar district, 75 km north of Mumbai. It forms a corridor between Sanjay Gandhi National Park and Tansa Wildlife Sanctuary.
Landscape Characterized by hilly terrain, dense forests, and small rivers or streams.
Vegetation Three different types of forests – Dry Deciduous, Moist Deciduous, and Semi Evergreen.
Temples Several ancient temples are within its boundaries, with the most famous being the Tungareshwar Temple, dedicated to Lord Shiva.

September 22, 2023 /22 September 2023Today's ArticleTungareshwar Wildlife Sanctuary