DAILY CURRENT AFFAIRS ANALYSIS
06 AUGUST 2022
|. No.||Topic Name||Prelims/Mains|
|1.||Naxalism in India||Prelims & Mains|
|2.||Gaganyaan Mission||Prelims & Mains|
|3.||Forex Reserve||Prelims & Mains|
|4.||Digital Banks||Prelims Specific Topic|
1 – Naxalism in India:
Topic – Internal Security of India
- Indian Naxal Movement:
- The movement had strong ideological roots in its early phases and was guided by figures like Charu Majumdar, Kondapalli Seetharamaiah, Nagabhushan Patnaik, and others.
- The movement’s course and personality changed with time, becoming more vicious and sanguinary.
- It nonetheless kept up the appearance that it truly stood by the impoverished and the oppressed, particularly the tribal people.
- Maoism still has resonance with some of the more ideologically oriented sections in universities and colleges, albeit it did lose some of the backing of the urban intellectuals.
- Dantewada, Bastar, Bijapur, and Sukma are now the primary Maoist activity hotspots in Chhattisgarh.
- The taxonomy of Naxalism has undergone significant alterations between the initial phase (1967–1972) and the current Maoist movement.
- Today, it has changed into a very regimented, militaristic movement that now prioritises terrorising populations over advancing their ideas.
- In a joint operation run by the Special Operations Group of Odisha and the Greyhounds of Andhra Pradesh, the Communist Party of India (Maoist) lost about 30 of its cadres.
- Many feel that it signalled the beginning of the Naxalite movement’s decline in the nation.
- Political variables:
- One of the main causes of such revolutions was the nature of tribal peoples and the political system’s indifference to them.
- lack of political power in India to give the underprivileged groups of society in the impacted states opportunities for structural uplift.
- Lack of tribal community participation in politics
- Economic variables:
- Underdevelopment, economic inequality, and poverty in the areas afflicted by Naxal.
- Mining firms’ entry into tribal lands and forests poses a threat to the tribes’ way of life.
- Indigenous tribal population torn from their traditional means of subsistence and robbed of their lands
- The advantages of resource exploitation are not distributed to the native people.
- Environmental Damage:
- Due to mining and industrial activities, there is environmental degradation in the form of the depletion of land and water resources.
- Lack of essential infrastructure:
- Lack of essential services including food, freedom, education, and sanitization.
- Due to inequality, illiteracy, and a lack of opportunities, the socially backward tribals make up the majority of the Naxalites’ support base.
- Reasons for the CRPF’s defeats in the fight against the Naxals:
- States do not share a common strategy
- Insufficient communication between the Central forces and the state police.
- Inadequate combat readiness and training for forces in Maoist-affected states.
- Between governments and regions, there is a lack of formalised intelligence sharing.
- Naxalites have a strong advantage in armed conflict due to their familiarity with the area.
- Government’s strategy:
- In the naxal-affected districts, there was a significant deployment of security personnel as part of Operation Green Hunt, which began in 2010. In nine years, the number of districts afflicted by naxalism has decreased from 223 in 2010 to 90 now.
- Program for Aspirational Districts:
- The government’s strategy is to address left wing extremism holistically, with a focus on security, development, protecting local populations’ rights and entitlements, better governance, and public perception management.
- Since “Police” and “Public Order” are State issues, state governments are primarily responsible for maintaining law and order.
- Repairing severe infrastructure gaps in states afflicted by left-wing extremism under the Scheme for Special Infrastructure.
- Through the Ministry of Defense, assistance is provided for training State Police.
- Support for community policing and civic engagement initiatives.
- To end the threat as quickly as possible, there is a “National Policy and Action Plan to Address Left Wing Extremism.”
- Enhancing the deployment of central forces in the state’s Naxal-infested areas is the goal of anti-left-wing extremism (LWE) policy.
- Alternatives to Naxalism in India:
- Good leadership:
- The presence of Naxals in the nation also highlights the gaps in the legal system, which has failed to stop the threat.
- To eradicate Naxalism, the central government must put in place a comprehensive national strategy.
- Talks between Naxal leaders and government representatives may help to find a solution.
- The administration ought to start a real conversation with the Naxalites.
- Improve wages while creating more jobs:
- The inhabitants in the area have no choice but to join the Naxals due to unstable work and living conditions.
- In order to effectively combat Naxalism, we must first offer the local population legitimate work options that pay well.
- Rehabilitative services and relocation:
- The lack of any plans for the resettlement of the displaced people caused by the presence of mining grounds, irrigation areas, industries, etc. in the region has only made things worse for the poor.
- Rehabilitation of the afflicted population needs to receive more attention.
- Stop environmental deterioration:
- Degradation of the environment in the form of the depletion of land and water resources as a result of industrial and mining activities
- The villagers’ life are disrupted, which has a negative impact on tourism
- Stop political marginalisation of less powerful groups:
- The ruling class continues to discriminate against the lower classes, schedule castes, and schedule tribes.
- These marginalised groups don’t participate equally in political elections and campaigns, making them easy prey for Naxals.
- Eliminate disparity:
- Economic inequality and the widening gap between the rich and the poor are two of the major issues that have fueled the rise of naxalism.
- To combat Naxalism, this gap must be closed in a hurry to some extent.
- Ensure that common people have access to necessities:
- The exploitation of tribal lands and forests for industrial interests is one of the main causes of instability.
- The loss of land and the absence of necessities like food, sanitation, freedom, and education
- Act to improve the welfare of the tribal people:
- Because of inequality, ignorance, and a lack of opportunities, the socially backward tribal people make up the majority of the Naxalites’ support base.
- It’s critical to keep these individuals from falling victim to the Naxal trap.
- Update law enforcement organisations:
- The state governments are in charge of the bulk of the law enforcement.
- The Union Ministry of Home Affairs is in charge of a number of federal agencies.
- The central government must make inroads into these troubled states with its agencies equipped with cutting-edge artillery and support the frequently under-resourced state authorities.
- As of Now:
- The administration, the security establishment, as well as the federal and state governments, must understand that the movement cannot be treated just from a law and order perspective.
- If the movement is to be successfully stopped, it is obvious that the process of enhancing the lives of the underprivileged and tribal people must be accelerated.
- The counterinsurgency strategy’s fundamental goal will be to win over the hearts and minds of the tribal population and other marginalised groups.
- Infrastructure improvements for the road and rail system will not only promote economic development but also aid in stymieing Maoist propaganda.
- The efficacy of the security forces in conducting operations will also increase as a result of the increased road connectivity.
- Offering rewards and alternative life support systems to persons who have been turned in
Source – The Indian Express
2 – Gaganyaan Mission:
Topic – Space Technology
- The Indian Space Research Organization’s Gaganyaan mission (ISRO).
- The Gaganyaan timetable calls for the launch of three trips into orbit.
- There will be one manned space voyage and two unmanned ones.
- Three Indian astronauts, one of them is a woman, will go aboard the Gaganyaan system module, known as the Orbital Module.
- It will spend 5-7 days in a low-Earth orbit around the planet at an altitude of 300–400 km.
- The crew module, a spacecraft carrying people, will make up the payload.
- powered by two liquid-propellant engines in a service module.
- It will have emergency escape and mission abort features.
- Launch: The three-stage heavy lift launch vehicle GSLV Mk III, also known as the LVM-3 (Launch Vehicle Mark-3), will be used to launch Gaganyaan because it has the required payload capacity.
- Russian training:
- A contract for the training, which includes Russian assistance in the choice of applicants, their medical inspection, and their space training, was signed in June 2019 between the Human Space Flight Centre of the ISRO and the Russian government-owned Glavkosmos.
- The Soyuz manned spacecraft’s systems will be thoroughly studied by the applicants, and they will also receive training in short-term weightlessness aboard the Il-76MDK aircraft.
- Russians built the Soyuz spacecraft. People and supplies are transported to and from the space station by the Soyuz.
- A military transport aircraft called the Il-76MDK was created specifically for parabolic flights of aspiring astronauts and space tourists.
- Importance: It will raise the nation’s level of science and technology and encourage young people.
- Numerous departments, agencies, laboratories, fields of study, and companies will participate in Gaganyaan.
- It will assist in enhancing industrial growth.
- As part of changes to boost commercial participation in the space sector, the government recently created a new organisation, IN-SPACe.
- It will contribute to the advancement of technology for social good.
- It will aid in enhancing global cooperation.
- It might not be enough to have just one International Space Station (ISS) built by several nations. There will be a need for local ecosystems, and Gaganyaan will concentrate on local requirements for food, water, and energy security.
Source – The Hindu
3 – Forex Reserve:
Topic – Indian Economy
- Foreign currency reserves
- Bonds, treasury bills, and other government securities are examples of assets kept in reserve by a central bank in foreign currencies.
- It should be emphasised that US dollars make up the majority of the world’s foreign currency reserves.
- foreign exchange holdings consist of:
- Assets in foreign currencies
- Special Drawing Rights (SDR) Reserve status with the International Monetary Fund for gold reserves (IMF)
- What are the goals of having foreign exchange reserves?
- defending and preserving trust in monetary and exchange rate management strategies.
- provide the option for intervention in support of the national or union currency.
- keeps the foreign currency liquidity available to absorb shocks during times of crisis or when borrowing is restricted, hence reducing external vulnerability.
- What does the increase in foreign exchange reserves mean?
- Rising foreign exchange reserves provide the Indian government and Reserve Bank of India assurance in handling both internal and external financial challenges.
- Managing a Crisis: In the event of an economic Balance of Payments (BoP) crisis, it serves as a cushion.
- The rupee’s strength against the US currency has been boosted by increasing reserves as well.
- Market Confidence: The presence of reserves gives markets and investors the assurance that a nation can fulfil its international obligations.
Source – The Indian Express
4 – Digital Banks:
Prelims Specific Topic
- How do digital banks work?
- The Banking Regulation Act of 1949 defines digital banks, sometimes known as DBs.
- The Banking Regulation Act grants these organisations the authority to issue deposits, make loans, and provide the complete range of services.
- To provide their services, they will primarily rely on the internet and other nearby channels rather than actual physical branches.
- Digital banks provide the following benefits:
- helps the nation’s financial inclusion difficulties be overcome and helps save transaction costs
- Useful for JAM trinity utilisation; reduces banking inequality
- enables India to become the world leader in fintech
- What suggestions does Niti Aayog offer?
- The article also recommends a two-stage strategy:
- issuance of a licence for a digital business bank
- after accumulating experience as a digital (universal) bank, issuing a licence
- Even with the Digital Business Bank licence, it advises using a calibrated strategy that includes the issuance of a restricted digital business bank licence (in terms of the volume/value of customers serviced and similar factors).
- It suggests including the licensee in the RBI’s newly implemented regulatory sandbox system.
- It also says that if the licensee does well in the regulatory sandbox, a “full-stack” Digital Business Bank licence will be issued.
- It also implied that a restricted digital business bank operating in a regulatory sandbox might have a minimum paid-up capital that is proportionate to how restricted it is.
- According to the example, a full-stack digital business bank will need to raise Rs. 200 crore in order to advance from the sandbox into the final stage (equivalent to that required of the Small Finance bank).
- What are the difficulties?
- Given that RBI had to intervene to limit harm in the cases of private sector banks like Yes Bank and LVB, its history with licencing private sector banks is not entirely positive.
- The RBI has a sign that reads “bank under repair” in its PCA framework, but it hasn’t commented on the effectiveness of the various other banking categories, such payments banks or SFBs.
- Some of the earlier licence categories and the banking categories appear to lack viability and have not been able to demonstrate their importance in relation to the stated goal.
- Regulation must change to ensure that the financial system takes on digital innovation without being disrupted until legislation catches up.
- Like other central bankers throughout the world, the RBI is concerned about who owns which banks. Global authorities are concerned that banks will ultimately be owned by people who live in their jurisdiction, which could provide a problem for many applicants for licences as digital-only banks.
- The difficulty for digital banks will be to demonstrate their ability to raise a liability pool rather than only relying on big equity capital as a source of debt financing.
- Everything pertaining to digital data security, cyber security, or privacy rights is an issue in terms of protecting consumers.
- Even NBFCs with substantial capital bases are prohibited from referring to themselves as “banks” in customer communications, while many modern fintech platforms refer to themselves as “neo banks.”
Source – The Hindu