January 10, 2024 | Your One-Stop Solution for Daily Preparation
European Union's (EU) Carbon | Explained
The European Union's (EU) Carbon Border Adjustment Mechanism (CBAM) represents a pivotal policy set to reshape international trade dynamics. This mechanism, scheduled to initiate its transitional phase from October 1, 2023, has stirred concerns globally, particularly in countries like India. As we delve into the intricacies of CBAM, it becomes evident that its implications extend far beyond the EU's borders.
Highlights of the Day
1.Indian Defence Minister's Landmark U.K. Visit: Strengthening Ties, R&D Agreement, and Homage to Gandhi
Indian Defence Minister Rajnath Singh, on a two-day visit to the U.K., held discussions with U.K. Defence Minister Grant Shapps, emphasizing the non-transactional nature of their partnership. Both ministers focused on enhancing defence industrial collaboration, signing a Letter of Agreement on R&D between India’s DRDO and the UK’s DSTL. Singh paid homage to Mahatma Gandhi in London, commemorating his return to India in 1915. The visit marks the first by an Indian Defence Minister to the U.K. in over two decades, with previous attempts hampered by scheduling issues. The ministers reaffirmed the strong and shared goals between the two nations[1].
2. Government Signals Strong Support for Rural Employment with 50% Increase in MGNREGS Budget
The Indian government is considering allocating approximately Rs 90,000 crore to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in the 2024-25 budget, a 50% increase from the previous fiscal year. This signals a commitment to rural employment ahead of general elections. The FY24 budget had a lower provision due to misappropriation concerns, prompting supplementary grants. The move towards higher upfront allocation aims to sustain the program throughout the year. Initiatives include Aadhaar-Based Payment System to curb corruption. Despite increased funds, leakages remain a challenge. Prime Minister Modi emphasizes uplifting the poor, youth, women, and farmers[2].
3. World Bank Maintains India's Growth Forecast Amidst Post-Pandemic Challenges
The World Bank maintains India's economic growth forecast at 6.3% for the current fiscal year and 6.4% for the next, citing a sluggish post-pandemic recovery. Despite India's statistical office estimating GDP expansion at 7.3%, the World Bank attributes the slowdown to weakened post-pandemic rebound, particularly in private investment and consumption. The report anticipates gradual recovery with growth reaching 6.5% in FY2025/26. Globally, the Bank warns of a third consecutive year of slowing growth, projecting 2.4% in 2024, potentially delaying poverty reduction and increasing debt levels in developing countries. The report highlights India's resilient domestic demand, robust public investment, and vibrant services activity[3].
4. PM Modi and UAE President Sheikh Mohamed bin Zayed Inaugurate Global Trade Show Ahead of Vibrant Gujarat Summit
Prime Minister Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan inaugurated the Global Trade Show in Ahmedabad ahead of the Vibrant Gujarat Global Summit. They held a three-kilometer roadshow, greeted by enthusiastic crowds. PM Modi also had bilateral meetings with Timor-Leste President José Ramos-Horta and Mozambique President Filipe Jacinto Nyusi, signing multiple MoUs. Modi offered assistance to Timor-Leste in various sectors, while discussions with Nyusi covered defense, counter-terrorism, energy, health, trade, agriculture, and more. The roadshow featured elaborate arrangements, and festive elements, showcasing India's diverse dance forms[4].
5.India's Commerce Ministry Takes Steps to Tackle Trade Barriers for Exporters
The commerce ministry has formed a task force to address trade barriers faced by Indian exporters abroad, aiming to enhance market access. The focus includes tackling registration delays and domestic standards issues in various countries. Efforts involve improving mutual recognition agreements and ensuring global standards for goods and services. The Global Trade Research Initiative emphasizes swift action to remove non-trade barriers, suggesting upgrades to domestic systems and potential retaliation against unreasonable standards. Key Indian exports facing obstacles include chillies, tea, rice, and pharmaceuticals in different markets, prompting the need to address non-tariff barriers hindering international trade[5].
Source: The Hindu | TOI
Practice Questions for Prelims
Q1: Consider the following statements about Biomes:
1. The tundra biome is characterized by low temperatures, permafrost, and limited vegetation.
2. The grassland biome experiences high rainfall and supports dense forests.
3. The savanna biome is known for its distinct wet and dry seasons, supporting diverse wildlife.
Which statements are true?
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Q2: Consider the following statements regarding the Election Commission of India (ECI):
1. The Election Commission conducts elections to the Lok Sabha and State Legislative Assemblies only.
2. The Chief Election Commissioner and other Election Commissioners are appointed by the President.
3. The ECI is responsible for enforcing the Model Code of Conduct during elections.
Which statements are true?
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Q3: Which of the following statements regarding quantum entanglement is correct?
a) It involves the interaction of particles that remain independent of each other's states.
b) Quantum entanglement occurs when two or more particles become connected and the state of one instantly influences the state of the other, regardless of the distance between them.
c) It primarily focuses on the predictable behavior of individual particles in isolation.
d) Quantum entanglement violates the conservation of energy principle in physics.
Q4: The 'Western Disturbances' play a significant role in the weather patterns of which region in India?
a) Northern Plains
b) Western Ghats
c) Eastern Ghats
d) Deccan Plateau
Q5: The 'James Webb Space Telescope (JWST)' is designed primarily to observe in which spectrum?
a) Ultraviolet and visible
b) Infrared
c) X-ray
d) Gamma-ray
Today’s Question for Mains Answer Writing
How does the European Union's Carbon Border Adjustment Mechanism (CBAM) impact India's manufacturing sector, and what strategies should India employ in the face of potential challenges? Discuss the implications for key sectors, India's carbon trading initiatives, and the urgency for formulating effective carbon taxation measures, considering global dynamics and negotiations?
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