The Indian Express

Trade Tariff Threats by Trump Administration

Context: The US President Donald Trump has intended to impose trade tariffs on BRICS nations which likely will have an impact on India.

Relevance of the Topic: Mains: Detailed question on possible impact of US tariff hike and suggestions for India.

Trade dynamics between the US and India

India-US Bilateral Trade: Present Status:
- The US is India’s largest trading partner.
- The US is also one of the few countries with which India had a trade surplus in 2023-24.
  - In FY24, the bilateral trade between India and the US stood at a record US$ 118.2 billion as against US$ 128.78 billion in FY22.
  - In FY24, India had a trade surplus of US$ 36.8 billion with the US.
- US is the 3^rd largest investor in India with cumulative FDI inflows of US$ 65.19 billion from April 2000-March 2024.
India’s major exports to the US: Engineering goods, Electronic goods, Gems and Jewellery, Pharmaceutical Products, Light crude oil and petroleum, electrical, and others.
India’s imports from the US: Mineral fuels and oils, Pearls, precious, and semi-precious stones, Nuclear reactors, boilers and machinery, Electrical machinery etc.

Issues pertaining to trade and tariffs between India and US

Asymmetrical tariffs: The US alleges India of enjoying more tariff relaxations but does not provide the same in reciprocity to the US.
Trade imbalance: The positive Balance of Trade of India remains a persistent concern for the US.
Lack of concessions: India provides less amount of concessions in trade to the US as both nations lack any Free Trade Agreement. E.g., The US motorcycle company Harley-Davidson withdrew from India due to high tariff rates.
Service Export disputes: The US-India free trade agreement is delayed due to the difference in opinion in Mode-4 type of service export.
- Mode-4 is a type of service export that means a person temporarily immigrating to a destination nation to provide services.
Most Favoured Nation clause: If India wishes to provide concessions in tariff to the US, the MFN clause of the World Trade Organisation compels India to provide the same concessions to other trade members like China, which can impact trade balance of India.
Agriculture subsidies: Nations like the US criticize the subsidies to Indian farmers claiming them to be a trade distortion practice.

Due to all the above issues the US President Donald Trump is of the opinion to impose trade tariffs on India to uphold the principle of reciprocity in global trade.

Potential Impacts on India

Reducing competitiveness: The possible high tariffs will reduce the competitiveness of the Indian products in the US market, reducing the profits of Indian exporters.
Widening of trade deficit: A reduction in the exports to nations like the US will impact the trade balance of India, pushing it towards the negative side.
Pressure on foreign exchange: Trade imbalance of India may reduce the dollar inflow in India reducing the foreign exchange reserve.
Sectoral slump: Indian sectors like pharmaceuticals, IT sector, textile sector and jewelry sector may face a crisis situation due to the reduction in the exports to one of the largest markets i.e., US.
Hampering investment: The tariff hikes may make foreign investors skeptical about the future of India-US trade relations hampering the investment in the Indian market.
Currency depreciation: Reduction in the export will have a cascading impact on the Indian rupee, leading to weakening of Indian currency.

Way Forward for India

In these challenging circumstances India have various structural, diplomatic and institutional solutions;

Export diversification: Majority of Indian exports i.e., 90% are limited to five countries. India should look for diversification of export destinations with a special focus on Latin American and African nations.
Diplomatic engagement: India should engage with the US administration to accelerate the process of the US-India Free Trade Agreement by assuring equal trade rights and benefits to the US.
Enhancing product competitiveness: India should invest in long-term investments like:
- Reducing cost of production by skilling and reskilling of labour; reducing legal compliance cost of manufacturers and automation of the assembly line.
- Improving connectivity to reduce logistics cost from 12% to 8% of GDP.
- Trade facilitation by enhancing ease of doing business.
- Capacity building of Special Economic Zones by focusing on a few large SEZ instead of multiple small SEZs.

The US-India trade relations are expected to witness a roller-coaster ride due to aggressive policies of the Trump administration. The need of the hour is to enhance competitiveness, boost domestic consumption and explore alternative markets to create a cushion against the US tariff jerks.

The H-1B Visa Debate

Context: With Donald Trump becoming President of the USA, there are rumors that the US administration is going to limit the H-1B visa program. In this context, let us understand the merits of this program and the issues arising in recent times.

Relevance of the Topic:Prelims: Key facts about H1B visa.

About H-1B Visa Program

The H-1B is a temporary (non-immigrant) visa category in the US that allows employers to hire highly educated foreign professionals to work in specialty occupations requiring at least a bachelor’s degree or the equivalent.
Jobs in fields such as mathematics, engineering, technology, and medical sciences often qualify.
The initial duration of an H-1B visa is three years, which may be extended for another three years (maximum of 6 years).
Due to high demand, an annual cap of 65,000 regular visas is put in place, a computerised lottery selects the applicants.

Merits of the H-1B visa program

Talent utilisation: The program provides an opportunity for skilled workers to contribute to advanced sectors like IT, engineering, and other specialised fields in the U.S.
Economic contributions: H-1B visa holders add significant value to the U.S. businesses through their expertise, helping companies maintain technological control and competitiveness globally.
Addresses labour shortages: It helps address labor shortages in specialised fields by filling gaps that U.S. workers cannot meet, ensuring the smooth functioning of industries that rely on highly skilled labor.
Mutual benefits for workers and firms: Workers gain exposure to advanced environments and career growth opportunities, while companies benefit from their technical skills and innovation.
Global talent integration: By attracting global talent, the H-1B program enriches the workforce with diverse perspectives and ideas, fostering innovation and collaboration.
Educational and professional integration: Many H-1B visa holders are alumni of U.S. universities, and the program helps retain this talent, which has already been trained within the U.S. education system.
Bringing the skill back home: E.g., Several CEOs have previously worked in the US and brought their knowledge and skills back to India.

Demerits of the H-1B visa program:

Corporate control over workers: H-1B workers are tied to their sponsoring employers, creating dependency. This dependency allows companies to exploit workers by paying them lower wages and imposing strict conditions.
Lower wage standards:
- The program legally permits companies to pay H-1B workers less than the prevailing wages for their roles, undercutting both migrant and local workers.
- By relying on H-1B workers as a cheaper labor pool, corporations avoid paying competitive wages to American workers, creating downward pressure on overall wage levels.
Fear of job loss and deportation: H-1B workers face the constant threat of losing their visa status if they lose their job. This makes them more vulnerable to accepting poor working conditions and exploitation.
Underemployment through loopholes: Companies often misuse the system by creating job classifications that allow them to skirt wage norms or hire workers for roles beneath their qualifications.
‘Best and brightest’ myth: Critics have argued that the program is not designed to attract the best talent but rather to serve as a low-cost labour source for corporations. This undermines the original intent of the program.
Body shops and exploitation networks: Many H-1B workers are recruited by intermediaries or "body shops" that profit from their placement. These entities take advantage of workers by charging illegal fees, arranging fake resumes, and providing subpar job conditions.

Conclusion: Although there are systemic issues within the H-1B program that compromises the well-being of both migrant and local workers, any policy in this regard must take into account the human costs associated with the immigration policy and advocate for a stable and predictable immigration policy.

ISRO to launch its 100th mission: NVS-02 Satellite

Context: Indian Space Research Organisation (ISRO) is all set to launch its 100th mission – the NVS-02 satellite, aboard the Geosynchronous Satellite Launch Vehicle (GSLV) – in January 2025.

Relevance of the Topic:Prelims: Key facts about NVS-02 Satellite; NAVIC System

About NVS-02 Satellite

NVS-02 will be the second satellite in the series of 2nd-generation navigation satellites and the 9th satellite in the Navigation with Indian Constellation (NavIC).
- NavIC consists of a constellation of 7 satellites (First-generation Satellites)
- NVS-01 (the first 2nd generation satellite was launched in May 2023)
Launch vehicle: GSLV Mark II
NVS-02 will likely have two kinds of payloads - navigation payload and ranging payload.

Payloads of NVS-02

1. Navigational payload:

Navigational payload transmits signals to users on Earth. It does so using three bands in the spectrum - L1, L5, and S band.
A Rubidium atomic clock is on-board NVS-02.
- Atomic clocks are highly accurate and stable clocks, with errors of less than 10 nanoseconds.
- The low errors result in providing accurate ranging for position determination.
- The Rubidium atomic clock measures the length of one second by counting the oscillations of rubidium-87 atoms.

2. Ranging payload:

Ranging payload consists of a transponder.
- This helps the navigation satellite transmit time-stamped navigation signals to the receivers at the ground station.
- This information is then processed at the end-user stage to derive their exact position, speed, and time.
This helps in providing seamless and non-stop service irrespective of weather conditions on Earth.

Significance of 2nd generation satellites

2nd-generation satellites in NavIC will send signals in a third frequency (L1) besides the L5 and S, thus increasing interoperability with other satellite-based navigation systems.
2nd-generation satellites have a much more robust encryption system to keep all communications completely secure.
These satellites will have a longer mission life of more than 12 years. 1st generation satellites have a mission life of 10 years.

What is NavIC?

NavIC (Navigation with Indian Constellation) is the independent stand-alone navigation satellite system of India. It was earlier known as IRNSS (Indian Regional Navigation Satellite System).
Features:
- NavIC consists of a constellation of seven satellites. Three satellites are located in the geostationary orbit and the remaining four are located in geosynchronous orbits around the Earth: IRNSS-1A, IRNSS-1B, IRNSS-1C, IRNSS-1D, IRNSS-1E, IRNSS-1F, and IRNSS-1G.
- The first satellite of the seven-satellite navigation system was launched in 2013, and the seventh satellite was launched in 2016.
  - NVS-01 replaced IRNSS-1G.
  - NVS-02 is also a replacement satellite for one of the satellites in NavIC.
NavIC provides positioning, navigation, and timing services to users across India and the region extending up to 1,500 km around the country, with position accuracy of better than 20 meters, and timing accuracy of better than 50 nanoseconds.
Developed by: Indian Space Research Organisation (ISRO).

NavIC offers two types of services

Standard Positioning Service: Available to all users and provides positioning accuracy of around 20 meters throughout the Indian region and within the primary service area.
Restricted Service: Encrypted service primarily intended for authorised users such as the military, government agencies, and other security-sensitive applications.

Key objectives of NavIC system will be to aid:

Precision military activity
Strategic applications
Terrestrial, aerial, and maritime navigation
Precision agriculture
Geodetic surveying
Emergency services
Fleet management
Location-based services in mobile devices
Orbit determination for satellites
Marine fisheries
Timing services for financial institutions, power grids, and other government agencies
Internet-of-Things (IoT) based applications.

Satellite navigation systems of other countries:

Presently, there are four global satellite-based navigation systems.
- United States: Global Position System (GPS)
- Russia: Global Navigation Satellite System (GLONASS)
- China: BeiDou
- European Union: Galileo
Japan has a four-satellite regional navigation system (Quasi-Zenith Satellite System).

Why NavIC over global competitors?

NavIC is an independent regional system over the Indian region and does not depend on other systems for providing a position service within the service region.
- GPS and GLONASS are operated by the defence agencies of the US and Russia, respectively.
- There is a possibility that civilian service can be degraded or denied at any given time. E.g., during the 1999 Kargil War, the Indian government requested the US to provide enemy locations, but this request was denied.
Enhances India's military capabilities by providing accurate real-time navigation data for defence applications like weapon guidance, fleet management and location-based services, reinforces national security and safeguards territorial integrity.
NavIC signals come to India at a 90-degree angle, making it easier for them to reach devices located even in hard-to-reach areas like congested areas, dense forests, or mountains. In contrast to this, the GPS signals (satellites placed in Medium Earth Orbit) are received over India at lower angles.

Contract Farming in India

Context: India has emerged as a major exporter of French Fries attributed to the success of contract farming. It is a model through which companies procure high-quality potatoes directly from growers.

Relevance of the Topic:Mains: Contract Farming: Advantages, Challenges

What is Contract Farming?

According to the Food and Agriculture Organisation (FAO), Contract farming is an agreement between farmers and processing and/or marketing firms for the production and supply of agricultural products under forward agreements, frequently at pre-determined prices.

Rationale behind Contract Farming in India

Generating a steady source of income for small-scale and marginal farmers.
Focus on growing market-oriented crops.
Promote food processing and value addition and enhance exports.
Attract private sector investments into the agriculture sector, promoting innovation.
Reducing government burden of procurement or providing fair prices for the produce.
Diversifying crops and reducing the stress of growing traditional crops continuously.
Educating farmers about agri-business and market share of their produce.
Streamlines sourcing of raw materials for food processing units.

Advantages of Contract Farming

Producer/Farmer	Buyer/Firms
Assured income.	They get the desired quality and quantity of produce.
Access to modern technology, credits, and cost information.	Consistent supply of produce/raw material.
Doorstep exchange of produce, minimising transportation and marketing costs.	The most effective and preferred way to utilise their resources.
Minimising risks related to production and damage.	Direct investment in the agriculture sector.
Higher production and quality yield	Fixed price and no further negotiations after the contract is made. Cheaper option of all.
Assured market price	Increases brand value by having proper explanations for food safety concerns.
Knowledge acquisition and other intangible benefits.	Control over the variety of produce and other inputs.

Challenges associated with Contract Farming

Exploitation of Small-scale Farmers: Weak bargaining power of farmers, lack of knowledge compared to a team of market analysts and economists makes them vulnerable to unfair terms.
High Risks for Farmers: To meet the demands of firms, farmers have to make a change in their cropping pattern. This makes them overly dependent on contracting firms for inputs and market access, and makes them vulnerable to firms’ decisions.
Lack of Legal Protection: Informal (verbal) or poorly enforced contracts often fail to protect farmers’ interest. Minimal legal recourse in the event of breach of agreements.
Monopsony: A single buyer dealing with multiple farmers limits competition, promotes dependency and limits farmers’ negotiating power.
Differential Contractual Agreements: Large-scale farmers often receive better terms in the contract than the small-scale farmers for the same commodity, by the same firm.
Problems faced by growers like undue quality cut on produce by firms, delayed deliveries at the factory, delayed payments, low price and pest attack on the contract crop which raised the cost of production.

Case Study: Success Story of French Fries:

India has transitioned from importing to exporting frozen French fries. Varieties of potato like Innovator, Atlantic, and Markies are grown specifically for processing into fries.
Companies like McCain Foods, HyFun Foods, and Iscon Balaji Foods directly engage with farmers, ensuring a consistent supply of high-quality potatoes.
Farmers benefit from assured markets, stable incomes, and technical guidance, while companies gain reliable raw material.
This partnership has bolstered India’s agricultural exports and rural economy, with Gujarat emerging as a key hub.
The model highlights how contract farming can align farmers' interests with global demand for processed food products.

Legal status of Contract Farming in India:

Agriculture and Agricultural Marketing is a State Subject.
- Agricultural marketing is regulated by the States’ Agricultural Produce Marketing Regulation (APMR) Acts.
- Over 20 states of India have amended their APMR Acts to provide for contract farming.
Tamil Nadu is the first State in India to enact a law on contract farming in 2019- Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act.
- Aim: To safeguard interests of farmers during times of bumper harvest or fluctuating market prices.
- Key Features (Can be used as Way Forward):
  - Farmers would be paid at a pre-determined price arrived at the time of signing agreements with buyers.
  - Farmers could get support from purchasers for improving production and productivity by way of inputs, feed and fodder, and technology.
  - Any produce, banned by the Centre or State government or the Indian Council of Agricultural Research, would not be covered under contract farming.
  - Such agreements would have to be registered with designated officers from the Department of Agricultural Marketing and Agri Business.
  - State Contract Farming and Services (Promotion and Facilitation) Authority, would be formed to ensure proper implementation of this Act.
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 was an Act to create a national framework for contract farming through an agreement between a farmer and a buyer before the production or rearing of any farm produces. However, the Act was repealed owing to farmer protests.

America First Trade Policy and its Impact on India

Context: Trumps’ ‘America First Trade Policy’ is set to review existing US trade agreements and sectoral trade agreements. This holds significance for India, which recorded a $50 billion trade surplus with the US in 2023, compared to $25 billion in 2019.

The US has also indicated that appropriate measures will be taken to counter China’s currency manipulation.

Relevance of the Topic: Prelims: Trends of US-India trade; Generalised System of Preferences; Currency Manipulation

India-US Bilateral Trade

Trade Partnership:
- The US is India’s largest trading partner.
- The US is also one of the few countries with which India had a trade surplus in FY 2023-24.
  - In FY24, the bilateral trade between India and the US stood at a record US $ 118.2 billion, a slight decline from US$ 128.78 billion in FY22.
  - In FY24, India had a trade surplus of US$ 36.8 billion with the US.
- The US is the 3^rd largest investor in India with cumulative FDI inflows of US$ 65.19 billion from April 2000-March 2024.
India’s major exports to the US: Engineering goods, Electronic goods, Gems and Jewellery, Pharmaceutical Products, Light crude oil and petroleum, electrical, and others.
India’s imports from the US: Mineral fuels and oils, Pearls, precious, and semi-precious stones, Nuclear reactors, boilers and machinery, Electrical machinery etc.

America First Trade Policy and its Impact on India

Review of Trade deficit: Trump’s government is set to investigate US’s annual trade deficits in goods, as well as the economic and National Security implications of such deficits.
Tariff war:
- During his first term, Trump imposed 25% tariffs on steel and 10% on aluminium from India and other countries, invoking National Security provisions.
- He also revoked the Generalised System of Preferences (GSP).
Impact for India:
- Vulnerability to tariffs:
  - India’s consumer goods exports, such as pharmaceuticals, gems and jewellery, and marine products, are particularly vulnerable to US tariffs due to the trade imbalance.
  - India recorded a $50 billion trade surplus with the US in 2023, compared to $25 billion in 2019.
- Impacts of GSP Revocation: Revoking the Generalised System of Preferences (GSP) impacts India, as the preferential trade agreement benefits India the most.

What is the Generalised System of Preferences (GSP)?

The GSP is a non-reciprocal preferential treatmentsystem through which developed countries eliminate or reduce duties on eligible products originating in developing countries.
- Preference-giving countries unilaterally determine which countries and which products are included in their schemes.
- Each developed country has customised its own GSP programme to identify qualification criteria it deems important for their economy.
GSP promotes economic development by eliminating duties on thousands of products when imported from a designated beneficiary countries and territories.
Is it WTO Compliant? Yes. The Enabling Clause under the World Trade Organisation is the legal basis for the Generalised System of Preferences.

What is Currency Manipulation?

The US has indicated that appropriate measures will be taken to counter China’s currency manipulation.
- Currency manipulation happens when governments try to artificially tweak the exchange rate to gain an unfair advantage in trade.
- The US Treasury department defines currency manipulation as when countries deliberately influence the exchange rate between their currency and the US dollar to gain "unfair competitive advantage in international trade".

US withdraws from Paris Climate Deal

Context: The US President Donald Trump signed an executive order to withdraw from the landmark Paris climate agreement, dealing a blow to worldwide efforts to combat global warming.

Relevance of the topic:

Prelims: Questions related to Paris climate deal and NDCs of India.

Mains: Impact of US withdrawal from Paris climate deal.

About Paris Climate Agreement

The Paris Climate Agreement aims to limit global warming to well below 2°C, preferably 1.5°C, above pre-industrial levels.
Adopted in: It was adopted by 196 Parties in 2015, during the 21st Conference of Parties (COP21) to the UN Framework Convention on Climate Change, at Paris, France.
Key Features of the Climate deal:
- Nationally Determined Contributions (NDCs): Each country sets its own emission reduction targets, with updates every five years to enhance ambition.
- Global Stocktake: A periodic review of the progress on climate action at global level (not the national level) and identify overall gaps, conducted every five years.
- Climate Finance: Developed countries pledged to mobilise $100 billion annually by 2020 to support climate action in developing nations, with plans for scaling this amount post-2025.
- Adaptation and Resilience: Focuses on helping countries adapt to climate impacts and build resilience against future challenges.
Significance of Paris Climate Deal: First universal, legally binding, global climate deal. It emphasises global cooperation, fairness, and a commitment to sustainable development while recognising the individual capacities of nations.

Reasons for the US to pull-out from deal:

Perceived economic disadvantages: Donald Trump argues that agreement imposed unfair economic burden on US like;
- Impact on US industries: The deal’s restrictions would harm key industries like coal, oil and natural gas, leading to job loss.
- Hamper competitiveness of the US market as more restrictions are imposed on the US as compared to nations like China and India.
America first policy: Trump’s policy is to prioritise domestic growth and is skeptical of multilateral agreement that acts as a barrier to MAGA (Make America Great Again) policy of the USA.
Skeptical on Climate change: Trump has opposed the conception of climate change claiming them as a means to distract the masses from economic development.
Claims discriminatory: Trump claims the treaty to be discriminatory as the nationally determined targets are different for the US and other nations like China and India.

Global Impacts

Climate funding disruptions: The US plays a pivotal role in financing climate initiatives, but US withdrawal will lead to the disruptions in the Climate change fund for mitigating climate change.
Accelerated climate change: The US has shifted focus again to the fossil fuel based energy that can accelerate climate change and global warming.
Enhanced vulnerability: The US withdrawal will lead to rise in the vulnerability of the island nations and coastal regions, leading to climate-led disasters.
Cascading impact: The US withdrawal may set a precedent for other nations to withdraw from the climate deal, hampering the targets of the deal.

Suggestive Measures

Policy change: India can make emission norms stringent and invest in Green technology.
Long-term investments: India should invest in climate-resilient infrastructure under CDRI initiative to prepare for climate change.
Diversification of partnership: India should strengthen alliance with other nations and international organisations to secure alternate mechanisms of funding. E.g., Green bonds and climate change bonds.
Promoting regional cooperation: India can explore pooling of funds from regional organisations like BRICS to find an alternative to the Paris climate deal.
Private partnership: Nations can explore more private funding by enhancing pollution obligations on private organisations.

US withdraws from WHO

Context: The US President Donald Trump has passed an executive order to withdraw from the World Health Organisation (WHO).

Relevance of the topic:

Prelims: Organisation based question on WHO and the UN.

Mains: Detailed question on role of WHO and impact of US pull out on working or organisation.

Reasons for the US withdrawal from WHO

Inefficiency allegations: Trump criticises WHO as ineffective agency. E.g., WHO failed to control CoVID-19 pandemic.
Discriminatory in nature: US claims that WHO is discriminatory in nature of its operations, as it focuses more on the developing nations, by extracting funds from the first world nations.
Bias allegations: Trump alleges the WHO to be biased against the interests of the US as it has failed to convey the true picture of CoVID-19 spread to US authorities for timely action.
Chinese influence: Trump alleges the present Director General of WHO is under the influence of China, and China is using public relations and backdoor funding channels to compromise the integrity of the organisation.
Additional burden on exchequers: US funds about 15% of annual funds to WHO making it the largest fund giver. This puts an additional burden on the US economy compromising its nationalistic agendas.

Impact of US withdrawal on WHO

Funding constraints: The US contributed about 15% of the WHO annual funding, withdrawal of US will limit the funding of the agency.
Compromised operations: The logistical and funding challenges will have a cascading impact on operations of WHO leaving its initiatives like free vaccine distribution in a limbo.
Degrading reputation: US enjoys a great soft power and diplomatic strength across the world. US withdrawal from WHO may degrade the reputation of WHO across the globe.
Domino action: With the US withdrawal other nations may withdraw in the same fashion from the WHO, either to please the US or to reduce the funding burden on them
Susceptibility to future pandemic: WHO hosts various programs like ‘One Health’ and participates in ‘GAVI vaccine alliance’, withdrawal of US may reduce the power of WHO to handle future pandemic making world vulnerable to future pandemic.

Impacts on India

Restraining developmental work: WHO leads various health initiatives in India like WASH, hampered operations of WHO will negatively impact these initiatives in India.
Diplomatic burden: US can use its power to persuade India to leave WHO to legitimise its action of withdrawal from the agency.
Hampering global vision: India has contributed to WHO in the form of generic medicines and affordable vaccines. US withdrawal will limit the capacity of India to actualise the dream of ‘Vasudhaiva Kutumbakam.’
Funding burden: With the US withdrawal, funding obligations for nations like India may increase to sustain the WHO operations. This will put an additional burden on the Indian economy hampering other welfare targets of the government.

Way Forward

Diplomatic engagements: Nations like India, Germany and France that enjoy cordial relations with the US should engage in finding a middle ground of addressing the US concerns and maintaining operations of WHO.
- E.g., Advocating to reform the institutional structure of WHO, making it more democratic in nature by enhancing all members' partnership.
Parallel deals: India can explore a parallel cooperation with the US to gain funds and logistical help for sustaining the already running WHO initiatives.
Long-term investment: India can invest in healthcare, sanitation and vaccine Research and Development to reduce the dependency on WHO initiatives.

About World Health Organisation:

The World Health Organisation (WHO) is a specialised agency of the United Nations responsible for international public health.
It was established on April 7, 1948, which is now celebrated annually as World Health Day.
Members: 192 member states (excluding the US)
Headquarters: Geneva, Switzerland
Organisational structure of WHO:
- Director General: The chief executive officer, responsible for overseeing the day-to-day functioning of WHO.
- World Health Assembly: The decision making body of WHO, comprising all the members, meets annually for setting agendas for the year.
- Executive board: Composed of 34 technically qualified members elected by the WHA for three-year terms.
Programs and initiatives:
- Vaccine and Immunisation: Partnered with organisations like Gavi and UNICEF for the Expanded Program on Immunization (EPI).
- Coordinating for global health security as it manages the International Health Regulations (IHR) framework.
- Maternal health and child welfare: Manages the International Health Regulations (IHR) framework.
Famous reports and publications: World Health Report, World Malaria Report, Global Tuberculosis Report, World Mental Health Report, Global Nutrition Report, World Health Statistics, International Classification of Diseases (ICD), Noncommunicable Diseases Progress Monitor, Global Vaccine Action Plan Monitoring Reports, and the State of the World’s Nursing Report.

Conclusion: The US decision to pull out from WHO will possibly give a shock to the operations and reputation of WHO. But, deep diplomatic engagement, exploring private funding and alternate institutional mechanisms can help India and the world to maintain the pace of WHO initiatives.

Bail under PMLA for Women

Context: The Supreme Court has granted bail to a woman as an exception in the Prevention of Money Laundry Act (PMLA).

Relevance of the Topic:Prelims: Key facts about Bail Provisions under PMLA.

Bail Provisions under PMLA

Section 45: Section 45 of the Act makes the offences punishable for more than 3 years cognisable and non bailable.
The negative language in the Act shows that bail is not the rule but an exception under PMLA.
The Act makes it mandatory to hear the public prosecutor and if the prosecutor opposes bail, the court is required to apply the twin test.
These two conditions are:
- There are reasonable grounds for believing that the accused is not guilty of such offence; and
- He is not likely to commit any offence while on bail.

Exception to the Stringent Bail Provisions

There is an exception to this stringent bail standard, which applies to minors, women, and sick people. It says that provided that a person, who is under the age of sixteen years or is a woman or is sick or infirm, may be released on bail on the direction of Special Court.
This exception is similar to provisions in the Indian Penal Code that provide special consideration for women and minors.

Recent legal precedents for Exception

Delhi HC (2023): Preeti Chandra (Wife of Sanjay Chandra, Unitech Group) granted bail despite being well-educated and belonging to a high social stratum.
- HC ruled that no subclassifications of women (E.g., household lady) should restrict the provision.
- The court criticised the attempt to create sub-classifications within the broader category of "woman," deeming it misconceived.
- The Court however specified that to be eligible for bail, the accused must not be a flight risk or likely to tamper with witnesses.
Delhi Trial Court (April 2024): Interim bail denied to K. Kavitha in the Delhi excise scam case.
- The judge deemed it neither "mandatory" nor "obligatory" to apply the exception for women, especially for well-placed individuals.
Allahabad HC (September 2024): Bail denied to Shashi Bala, with the court ruling she did not qualify as a "vulnerable woman" and her alleged close association with Naseem and the significant magnitude of the fraud.
Supreme Court (January 2025): Shashi Bala appealed the HC decision, and subsequently she has been granted bail by the SC .
- SC remarked that prolonged incarceration (held in jail for a long time without trial) under the PMLA by ‘hook or by crook’ is not acceptable.

New Definition for Obesity

Context: The Lancet medical journal has proposed a new definition and method for diagnosing obesity, beyond simply looking at a person’s Body Mass Index (BMI).

Relevance of the Topic: Prelims: Basic idea of new definition for Obesity; Body Mass Index (BMI).

How is obesity measured at present?

Globally, the standard method of determining obesity employs Body Mass Index (BMI) cut-offs, as the sole determinant.
BMI is calculated by dividing a person’s body mass (weight) in kilograms by the square of their height measured in metres.
Global BMI cut-offs: A person with-
- BMI of less than 18.5 is considered to be underweight.
- BMI between 18.5 and 24.9 is considered to be normal.
- BMI between 25 and 29.9 is considered to be overweight.
- BMI over 30 is considered to be obese.

Why has the BMI method been criticised?

Relying solely on BMI cut-offs leads to both over-diagnosis and under-diagnosis of obesity.
- People with excess body fat may not always have a BMI of more than 30. But they may suffer the health consequences of obesity.
- People with high muscle mass may have a BMI of more than 30 while being extremely healthy.
E.g., In India many seemingly lean people with a BMI of less than 30 have abdominal fat that can affect the functioning of various organs.
- Indians get diabetes, hypertension, heart diseases and other consequences of obesity, even at lower BMI. This is because they have higher body fat percentages and central obesity as compared to Western counterparts.
- In India, BMI cut-offs were revised. BMI between 23 to 24.9 is deemed overweight and BMI of more than 25 indicates obesity.

What is the new proposed definition of Obesity?

Lancet Commission defines clinical obesity as a chronic illness that results in alteration in organ functions, regardless of other conditions a person might have.
The new definition takes into account physical parameters such as height, weight, waist circumference, muscle mass, and functioning of various organs.
Clinical obesity cannot be self-diagnosed. A physician will have to check for all kinds of signs and symptoms, such as:
- breathlessness, wheezing, sleep apnoea, high triglyceride levels, metabolic dysfunctions, non-alcoholic fatty liver disease.
- changes in reproductive system, heart failure, chronic fatigue, and knee and joint pain, physical activity of individuals etc.
Pre-clinical obesity: The new definition does away with the overweight category, and adds a category called pre-clinical obesity- where a person has excess body fat, but no associated ongoing illness.

How is body size calculated for this evaluation?

Lancet Commission suggests looking at any two of the following four parameters for evaluating body size:
- BMI
- Waist circumference
- Waist-to-hip ratio
- Waist-to height ratio
Doctors may also use methods such as Dexa scan to directly measure body fat.

New definition for Indians:

Indian guidelines will use the classifications of stage 1 and stage 2 obesity, instead of pre-clinical and clinical obesity.
- Stage 1 obesity: BMI of more than 23 — waist circumference and waist-to-height ratio is optional for this group — but do not have symptoms that show limitations in day to day activities.
- Stage 2 obesity: BMI of more than 23 and individual meets one more physical parameter of obesity (such as waist circumference and waist-to-height ratio), and suffer from obesity-associated limitations, co-morbid diseases.

Latest development in Obesity treatment:

Drugs like Ozempic, Wegovy, Zepbound are developed to deal with clinical obesity. They belong to a class of drugs known as glucagon-like peptide-1 receptor agonists (GLP-1RAs), which mimic a hormone (GLP-1) in the body that helps control insulin and blood glucose levels and promotes feelings of satiety. However, they are not free from complications.

Buddhist excavations in Ratnagiri

Context: The Archaeological Survey of India (ASI) has made significant discoveries during ongoing excavations at the historic Ratnagiri Buddhist site in Jajpur district, Odisha.

Relevance of the Topic: Prelims: Key facts about Ratnagiri Buddhist site.

Major Highlights:

ASI’s ongoing excavations at the 5th-13th Century Buddhist complex in Ratnagiri have uncovered many ancient Buddhist artefacts, including:
- Buddhist monastery complex (the monastery dates back to 8th CE).
- Hundreds of votive stupas
- Colossal Buddha head and sculptural fragments of Buddhist deities, a massive palm.
  - The Buddha head was 3-4 feet tall and the palm was 5 feet.
- Inscribed stones, pottery, beads, stone pillars
- An ancient brick wall believed to be part of a larger structure.
- Monolithic elephant measuring 5 feet in length and 3.5 feet in height.
Significance:
- The findings enhance Ratnagiri's 1,200-year legacy and solidifies its status as a cornerstone of Buddhist heritage in Odisha. The site experts believe that Ratnagiri rivaled Nalanda as a centre of Buddhist learning.
- The current excavation will greatly enhance understanding of the evolution of Buddhism in Odisha and its connections with Southeast Asia.

Ratnagiri Buddhist Site

Ratnagiri (meaning hill of jewels) is the site of a ruined mahavihara (once the major Buddhist monastery) in Odisha.
Location:
- It is located on a hill between the Brahmani and Birupa rivers in Jajpur district.
- It is close to other Buddhist sites in the area, including Lalitagiri (oldest Buddhist monastery in Odisha) and Udayagiri.
- Ratnagiri is a part of the famous Diamond Triangle of Odisha along with Udaygiri and Lalitgiri.
Developed under the patronage of the Bhauma kara dynasty, the site flourished as a prominent Buddhist centre from the 8th to the 11th centuries CE.
- Buddhist monuments were constructed from the 5th century CE onwards, with the last work in the 13th century. The peak period is dated between about 7th to 10th CE.
- Ratnagiri began to decline in the 13th century CE due to invasions by Muslim rulers. Although some activity at the site persisted until the 16th century CE.
Key fact: Buddha sculptures discovered in Ratnagiri feature intricate and distinctive hairstyles, not found elsewhere in India.

Odisha & Buddhism

Mauryan Emperor Ashoka (304-232 BCE) invaded the kingdom of Kalinga (ancient name for Odisha) in 261 BC, which led him to embrace Buddhism. He helped in spreading the religion to Sri Lanka, and Central and Southeast Asia.
Even though there was no evidence of Buddha visiting Odisha during his lifetime, Kalinga played a great role in popularising Buddhism especially in Southeast Asia, because of its trade link with the region.
- Tapassu and Bhallika, the two merchant brothers who became the first disciples of Lord Buddha, have their origins from Utkala (another ancient name of Odisha).
Odisha has long enjoyed maritime and trade links with Southeast Asian countries.
- Pepper, cinnamon, cardamom, silk, camphor, gold, and jewellery were popular items of trade between the ancient kingdom of Kalinga and Southeast Asia.
- Odisha annually holds Baliyatra, literally ‘voyage to Bali’. It is a seven-day festival to commemorate the 2,000-year-old maritime and cultural links between Kalinga and Bali and other South and Southeast Asian regions such as Java, Sumatra, Borneo, Burma (Myanmar) and Ceylon (Sri Lanka).
Studies suggest renowned Chinese Buddhist monk and traveller- Hiuen Tsang who visited Odisha (during 638-639 AD) might have visited Ratnagiri.
In Odisha, Buddhism is stated to have particularly flourished under the Bhaumakara dynasty, which ruled parts of the state in between the 8th and 10th Century.

Death Penalty in India: Legal Framework

Context: A sessions court in Kolkata has sentenced the convict of the rape and murder of a doctor at RG Kar Medical College and Hospital to life imprisonment. The Central Bureau of Investigation (CBI) had argued strongly for the death penalty, but the court granted life imprisonment. In the RG Kar case, the convict Sanjoy Roy is 35 years old.

Relevance of the Topic: Prelims: Key facts about legal framework related to Death Penalty in India.

Death Penalty in India

The Supreme Court has ruled that a sentence of death should be passed only in the rarest of rare cases, after the court has taken into account possible aggravating and mitigating circumstances (Bachan Singh v. State of Punjab, 1980).

Rarest of Rare Test:

In the Bachan Singh case, the SC upheld the death penalty but emphasised that it should be imposed only in the rarest of rare cases, where there is no possibility of reformation.
SC laid down non-exhaustive lists of aggravating and mitigating circumstances for courts to consider while making the decision.

Aggravating and Mitigating Circumstances:

Aggravating Circumstances: Factors which could tilt decision towards death penalty:

If the murder is pre-planned, calculated, and involves extreme brutality
If the murder involves exceptional depravity
If the accused has been found guilty of murdering a public servant, police officer or a member of the armed forces while discharging their duty.
Mitigating Circumstances: Factors which could tilt decision away from death penalty:
- If the accused was under extreme mental or emotional disturbance at the time of the offence.
- Age of the accused (would not be given death sentence if they are very young or very old)
- Probability of the accused posing a continued threat to society
- Probability of reforming the accused
- If the accused was acting on the directions of another person
- If the accused believed their actions were morally justified
- If the accused suffers mentally and is unable to appreciate the criminality of their actions.

Interpretations of circumstances by the Supreme Court

1. Age of the Accused:

In some cases (E.g., Ramesh v. State of Rajasthan 2011), the Supreme Court considered the young age of the accused persons (below 30 in these cases) as an indication that they could be reformed.
Law Commission of India noted in its 262nd Report (2015) that in the cases of Death Penalty, the courts have used age as a mitigating factor very inconsistently.

2. Nature of Offence:

In the Shankar Khade case 2013, the SC emphasised the courts should compare the case before them with cases concerning similar offences to determine the punishment. This is to avoid subjectivity in the rarest of rare doctrine.
In Machhi Singh v. State of Punjab case 1983, the SC held that death could be given in cases where the “collective conscience” of society is so shocked that the judiciary is expected to impose the death penalty.

3. Possibility of Reform:

In the Bachan Singh case 1980, the SC held that the government must prove there is no possibility of reform.
In Santosh Bariyar v. State of Maharashtra case 2009, the SC said that the court will have to provide clear evidence as to why the convict is not fit for any kind of reformatory and rehabilitation scheme.
The Law Commission Report said the requirement for evidence is essential for introducing an element of objectivity into the sentencing process.

When should the Court consider these Circumstances?

In the Bachan Singh case, the SC said courts must conduct a separate trial after convicting, so that judges can be persuaded why the death sentence should not be imposed (ensure fair trial).
In Dattaraya v. State of Maharashtra (2020), the court held that if such a hearing did not take place that was a valid reason to commute a death sentence to life imprisonment.

What is Securities Transaction Tax?

Context: Despite the volatility in the stock market, the Securities Transaction Tax (STT) collection has shot up by over 75% to Rs 44,538 crore as of January 12, 2025.

Relevance of the Topic:Prelims: Key facts about the Securities Transaction Tax.

About Securities Transaction Tax

Background:
- Finance Act 2004 introduced Securities Transaction Tax (STT), as a clean and efficient way of collecting taxes from financial market transactions.
- Rationale: To prevent people evading capital gains tax by not declaring their profits on the sale of stocks.
What is STT?
- STT is a direct tax levied on every purchase and sale of securities that are listed on the recognised stock exchanges in India.
- STT is an amount to be paid over and above the transaction value. Hence, it increases transaction value.
Regulation:
- STT is governed by the Securities Transaction Tax Act (STT Act).
- STT Act has specifically listed down various taxable securities transactions i.e., transactions on which STT is leviable.
- Rate of STT: Decided by the Government and modified from time to time, if necessary.
Taxable Securities:
- Shares, scrips, stocks, bonds and debentures
- Derivatives (Futures and Options)
- Units of mutual funds and other collective investment schemes.
- Government securities of equity nature
- Equity-oriented units of mutual funds
- Rights or interest in securities
- Securitised debt instruments
Exclusion: Off-market transactions are out of the purview of STT.

Rise in STT Collection:

Securities Transaction Taxcollection has increased by over 75% to Rs 44,538 crore as of January 12, 2025, as against Rs 25,415 crore raised in the same period in 2024.
- The rise in collections comes despite a hike in STT on futures & options (F&O) of securities that was levied to curb speculative market activity in the F&O segment.
- SEBI and RBI had raised concerns over the rise in volumes in the F&O segment, which can pose a risk to macroeconomic stability.
Increased STT collections also adds to the revenue kitty of the government.