GS Paper 3

What is Genome Sequencing? - Applications & Significance

What is Genome?

  • A genome is an organism’s complete set of DNA. It is a collection of all the genes and the regions between the genes contained in our 23 pairs of chromosomes.
    • Each chromosome is a contiguous stretch of DNA string, i.e., the human genome consists of 23 different strings, each composed of millions of individual building blocks called nucleotides or bases [adenine (A), cytosine (C), guanine (G), and thymine (T)]. 
    • These bases or building blocks (A, T, G and C) are arranged and repeated millions of times in different combinations to make all of our 23 chromosomes.
  • The genome contains all the data that is needed to describe the organism completely — acting essentially as a blueprint. The genome can be understood through the process described as genome sequencing.
Genome & Genome Sequencing

What is Genome Sequencing?

  • Whole-genome sequencing is the decoding of the entire DNA present in the human cell, i.e, determine the precise order of the four bases and how they are arranged in chromosomes.
  • This data can be analysed to understand the function of various genes, identify genetic mutations and explore how genetic mutations impact gene functions and cause certain congenital diseases. 

Applications of Genome Sequencing: 

  • Disease Diagnosis and Treatment: Genome sequencing can identify genetic mutations and variations that contribute to the development of diseases. It has been used to evaluate rare disorders, preconditions for disorders and even cancer from the viewpoint of genetics.
    • Nearly 10,000 diseases — including cystic fibrosis and thalassemia — are known to be the result of a single gene malfunctioning.
    • Genome sequencing can be used to read the codes of viruses, which can be used to understand how to combat the virus, track mutating variants, and develop a vaccine.
      • In 2014, a group of scientists from M.I.T and Harvard sequenced samples of Ebola from infected African patients to show how genomic data of viruses could reveal hidden pathways of transmission.
      • In January 2020, at the start of the CoVID-19 pandemic, scientists sequenced the genome of a novel pathogen causing infections in Wuhan, China.
  • Personalised Drug Development: Can identify genetic targets for drug development and testing, leading to the development of more effective and personalised drugs.
  • Prenatal Screening: Can be used as a tool for prenatal screening to investigate whether the foetus has genetic disorders/anomalies.
  • Agriculture: Can help identify genes that contribute to desirable traits in plants and animals, allowing for the selective breeding of crops and livestock.
  • Forensics: Genome sequencing can be used to identify suspects in criminal investigations and to establish paternity in cases of disputed parentage.
  • Evolutionary Biology: Can help trace the evolutionary history of species and understand the mechanisms underlying evolution.

Genome Sequencing Projects: 

Human Genome Project

  • In 1990, a group of scientists began working on the Human Genome Project which was an international programme that led to the decoding of the entire human genome. 
  • Completed in April 2003, the HGP, for the first time, gave the ability to read nature’s complete genetic blueprint for building a human being.

IndiGen:

  • IndiGen is a program initiated by the Council of Scientific and Industrial Research (CSIR) from April 2019 to October 2019. 
  • Aim: To sequence the whole genomes of 1029 individuals from diverse ethnic groups across India. 
  • The project has already been completed and the results have been published in the scientific journal Nucleic Acid Research. The data can be used to study the genetics of the Indian population and to develop new treatments for diseases that are common in India.

Genome India Project:

  • Genome India Project (GIP) is a government initiative to execute whole genome sequencing and subsequent data analysis of 10,000 individuals representing the country’s diverse population by the end of 2023. 
  • Launched by: Department of Biotechnology in January 2020.
  • Aim: To create a comprehensive reference database of genetic variations in the Indian population and identify genetic variations that are associated with common and rare diseases prevalent in the Indian population. 
  • The project is being carried out in collaboration with several institutions, including the National Centre for Biological Sciences, the Institute of Genomics and Integrative Biology, and the Centre for Cellular and Molecular Biology. 

Need of GIP: 

  • India has around 1.4 billion population consisting of over 4,600 population groups, many of which are endogamous (disease-causing mutations often amplified within some of these groups). But despite being a large population with diverse ethnic groups and huge prevalence of rare diseases in the country, India lacks a comprehensive catalogue of genetic variations.

Significance of GIP:

By unravelling genetic variants unique to India’s population groups, the project has the potential to:

  • Improve disease diagnosis and prevention: Identifying genetic markers associated with diseases can lead to earlier diagnosis, more effective treatment, and preventive measures. E.g., Identify prevalence of congenital disorders like sickle cell anaemia and thalassemia in certain tribal groups. 
  • Advance precision medicine: GIP's genomic data will be instrumental in implementing precision medicine approaches, targeted therapies, and tailoring healthcare to an individual's genetic profile.
  • Empower genomic research and innovation: By sequencing the genomes of a large and diverse group of individuals, the GIP will establish a baseline reference genome for the Indian population. This reference genome will be invaluable for researchers studying genomics in India and contributing to the global understanding of human genetics.

Important genome sequencing initiatives across the globe: 

S.No. Initiatives Initiated byDetails 
1.Human Genome Project Lead by USALaunched in October 1990 and completed in April 2003. 
2.deCODEIrelandLarge-scale population genetic studies initiated in Iceland in 1996. 
3.Diversity Human Genome Initiative Various pharmaceutical companies Sequence five lakh individuals of African ancestry (Launched in 2023)
4.100K Genome Project UKLaunched by the UK government in 2012 to sequence 100,000 genomes.
5.1+ Million genomes European Union Sequence genomes of at least one million people from across Europe by 2027. 
6.Genome Asia 100K initiative AsiaSequencing genomes of 100,000 individuals from diverse ethnic groups across Asia. 
7.IndiGenIndia Sequence whole genomes of 1029 individuals from diverse ethnic groups across India. (Completed in 2019)
8.Genome India Project India Execute whole genome sequencing and subsequent data analysis of 10,000 individuals in India till end of 2023.

Deep Space Optical Communication (DSOC)

Context: NASA’s Psyche spacecraft, currently over 16 million kilometres away in space, successfully fired a laser signal at Earth.

Components of Deep Space Optical Communication 

  • Laser Transmitter: It is mounted on spacecraft such as Psyche to generate a laser beam. The laser emits light in the form of photons, which is focused into a narrow beam.
  • Modulation: The information needed to be transmitted is encoded onto the laser beam through a process called modulation. 
  • Telescope/Collector: On the ground or at spacecraft, a large telescope or collector is used to receive the incoming optical signal. The collector is designed to capture as much light as possible from the incoming laser beam.
  • Photon Detection: The collected optical signal is then directed to a photodetector. The photodetector converts the incoming photons into electrical signals.
  • Demodulation: The electrical signals are demodulated to extract the original information that was encoded onto the laser beam. This involves reversing the modulation process applied at the transmitter.
  • Signal Processing: The demodulated data is processed by the communication system. 
  • Control Mechanism: It often includes feedback mechanisms to optimise the pointing of the laser beam. Precision pointing is crucial for maintaining a stable and strong connection over long distances.

NASA’s DSOC

  • NASA’s DSOC experiment is the agency’s first demonstration of optical communications beyond the Earth-Moon system. 
  • This new technology will employ advanced lasers in the near-infrared region (1.55 µm) of the electromagnetic spectrum.
  • The DSOC flight laser transceiver on board Psyche functions as a telescope, capable of receiving and transmitting laser light in precisely timed photon bursts.

X-Ray Polarimeter Satellite (XPoSat)

Context: Indian Space Research Organisation (ISRO) has announced that India is set to launch its first X-ray Polarimeter Satellite (XPoSat) onboard the Polar Satellite Launch Vehicle (PSLV) scheduled to be launched in December 2023. 

X-Ray Polarimeter Satellite: 

  • XPoSat is India’s first dedicated polarimetry mission to study the polarisation of cosmic X-rays and various dynamics of bright astronomical X-ray sources under extreme conditions. 
  • The spacecraft is designated for observation from Low Earth Orbit (non-sun synchronous orbit of ~650 km altitude, low inclination of ~6 degree).
  • XPoSat is the world’s second polarimetry mission using X-Ray. NASA’s Imaging X-ray Polarimetry Explorer (IXPE) Mission is the first satellite mission dedicated to measuring the polarisation of X-Rays from different cosmic sources.
  • The lifespan of the mission is 5 years. 
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Payloads:

  • The spacecraft will carry two scientific payloads – an X-Ray Polarimeter (POLIX) and X-ray SPECtroscopy and Timing (XSPECT).
    • POLIX: The primary payload, POLIX (Polarimeter Instrument in X-rays), is designed to measure polarimetry parameters, specifically the degree and angle of polarisation, in the medium X-ray energy range of 8-30 keV photons originating from astronomical sources. The payload is developed by the Raman Research Institute, Bengaluru.
    • XSPECT: The payload will provide spectroscopic information within the energy range of 0.8-15 keV. The payload is developed by the U.R. Rao Satellite Centre, ISRO. It would observe several types of sources viz. X-ray pulsars, blackhole binaries, low-magnetic field neutron stars in low-mass X-ray binaries, Active galactic nuclei and Magnetars.

Polarisation of light: 

  • Light travels in the form of transverse electromagnetic waves. The light emitted by sources like the sun, bulb, candle etc. has vibrations in several planes (oscillates in all directions), and it is called unpolarised light.
  • Polarisation is the phenomenon of restricting the vibration of light waves to one specific direction/plane. E.g., Polarised sunglasses have a special filter that allows only light with a specific polarisation direction to pass through, which helps to reduce glare and improve visibility by blocking unwanted polarisations.
image 1

Polarimetry:

  • Polarimetry is a technique to measure the polarisation of light. Polarimetry allows astronomers to observe and measure characteristics of objects, which include:
    • Size, shape and orientation of dust particles, such as those surrounding comets or in planet-forming discs around stars. 
    • Light from faint sources, such as exoplanets or hidden galactic nuclei.
    • Scattering properties of light-reflecting bodies (such as planetary atmospheres and the surfaces of rocky bodies).
    • Three-dimensional shapes of objects, such as supernovae.
    • Magnetic fields around stars and other objects, such as black holes. 

Why X-rays?

  • X-rays are high-frequency and high-energyelectromagnetic radiation and have much shorter wavelengths (ranging from 0.01 to 10 nanometres). X-rays come from objects that are millions of degrees Celsius—such as pulsars, galactic supernovae remnants, and the accretion disk of black holes.
    • Since the physical temperature of an object determines the wavelength of the radiation it emits, so the hotter the object, the shorter the wavelength of peak emission. 
  • Since X-rays have very short wavelengths and high energies, so they can penetrate most materials, including the mirrors in telescopes. Hence, scientists use this data collected by X-ray detectors on satellites in orbit around the Earth to see and record the energy flows within the celestial sources.
    • From space, X-ray telescopes collect photons from a given region of the sky. 
    • The photons are directed onto the detector where they are absorbed, and the energy, time, and direction of individual photons are recorded. 
    • Such measurements can provide clues about the composition, temperature, and density of distant celestial environments. 

Significance of the mission:

  • By measuring the polarisation of X-rays, astronomers can better understand the geometry, composition and physical processes responsible for X-ray emission/production in a variety of astrophysical sources to gain insight into their inner dynamics (like emission mechanisms of celestial objects). It can also shed light on the structure and dynamics of compact objects, such as black holes and neutron stars.
    • Astronomical sources, including black holes, neutron stars, active galactic nuclei, and pulsar wind nebulae, have extremely strong gravitational fields and emit X-rays as matter accretes onto them or as they interact with surrounding material. They present complex emission mechanisms that challenge their present scientific understanding. 
    • By combining polarimetric observations along with spectroscopic and timing measurements, researchers can overcome the limitations of the present understanding of astronomical emission processes.
  • Measuring X-ray polarisation helps in deducing the orientation and strength of magnetic fields in celestial objects.
    • Magnetic fields play a crucial role in many astrophysical processes, including the generation and acceleration of charged particles and the formation of energetic jets and outflows. 
  • X-ray polarisation measurements can help scientists understand the behaviour of high-energy particles in extreme environments.
    • X-rays are produced in regions with extreme conditions, such as supernova remnants, active galactic nuclei, and gamma-ray bursts.
    • By analysing the polarisation of X-rays from these sources, scientists can gain insights into the mechanisms responsible for particle acceleration, energy transfer, and radiation processes in these energetic phenomena.

Quantum Superposition and Entanglement

Quantum mechanics is a field of physics that describes the behaviour of matter and energy at the smallest scales, typically at the level of atoms and subatomic particles. Thus, it describes the behaviour and significance of small particles like atoms, electrons, and photons.

Quantum computing is a rapidly-emerging technology that harnesses the laws of quantum mechanics, such as entanglement and superposition, to perform computation or solve problems. 

Quantum Superposition:

  • Superposition is a phenomenon in quantum computing that allows quantum objects to simultaneously exist in more than one state or location. This means that an object can be in two states at one time while remaining a single object. 
  • Superposition enables the qubits of the quantum computer to perform multiple operations simultaneously, making them faster than conventional computers.
image

Quantum Entanglement:

  • When two or more particles become entangled, the state of one particle becomes linked with the state of the other(s), regardless of the distance between them. Changes to the state of one particle instantaneously affect the state of the other. 
  • Quantum entanglement is a crucial element in quantum computing algorithms. Entangled qubits in a quantum computer can be manipulated collectively, allowing for the parallel processing of information in a way that classical bits cannot achieve.

Asola Bhatti wildlife sanctuary

Context: Hearing a plea concerning encroachment and non-forest activities in the southern ridge forest, the Delhi High court was told by amicus curiae appointed in the matter that Delhi’s government’s forest department is going to organize a “cyclothon and walkathon” inside Asola wildlife sanctuary.

About Asola Bhatti Wildlife Sanctuary

Asola Bhatti Wildlife Sanctuary map
  • Asola-Bhatti Wildlife Sanctuary located on the south-eastern boundary of Delhi. 
  • It is the only protected area representing the northeastern, rolling outliers as a landform of the country’s oldest hill ranges, the Aravallis. Thus, it geographically represents a landform not earlier represented in the national Protected Area Network. 
  • This urban sanctuary could be a role model for all the conservation work undertaken by the Department of Forests & Wildlife GNCT of Delhi.
  • Note: Asola Bhatti Wildlife Sanctuary is the only wildlife sanctuary in Delhi. There are no national parks in Delhi. 

Climate

  • The climate of the sanctuary is mainly influenced by its remote inland position and prevalence of air of continental character, which is characterized by extreme summer heat alternating with great winter cold. 
  • Such a type of climate is unfavorable for the growth of luxuriant vegetation.
  • The climate is of semiarid nature due to marked diurnal differences of temperatures, high saturation deficit and moderately low rainfall.

Vegetation

  • The vegetation of Asola Bhatti is semi-arid thorny scrub and falls under Northern Tropical Thorn Forests type (Champion & Seth).
  • The native vegetation can be broadly classified into four forest (vegetation) types namely Dhau (Anogeissus pendula) Forest, Kumtha (Senegalia senegal) Forest, Palash (Butea monosperma) Forest and Grasslands representing native vegetation found on slopes of hills, degraded forests, forest in the valleys and savannah landscape in open areas respectively.
  • Keekar (Prosopis juliflora), which is native to Mexico, appears to have been established in barren, degraded areas, and areas near human settlements. Large thickets of Prosopis juliflora forms the main vegetal cover in the wildlife sanctuary.

Faunal Diversity

  • Mammals: Recorded 25 species of mammals including Leopard, Striped Hyena, Nilgai Golden Jackal, Jungle Cat, Ruddy Mongoose and Fruit Bat.
  • Birds: This wildlife sanctuary revealed the presence of 250 species and 2 subspecies, the presence of critically endangered Red-headed Vulture, endangered Egyptian Vulture, Steppe Eagle, vulnerable Greater Spotted Eagle and Indian Spotted Eagle.
  • Reptiles: 24 reptile species were recorded in our surveys including Indian Cobra, Saw-scaled Viper, Rock Python, Bengal Monitor Lizard (Varanus bengalensis), Leopard Gecko and Red Sand Boa.

Historical and Cultural Significance

  • Historical places around sanctuary are Surajkund and Anangpur Dam (both in Haryana), Tughlaqabad Fort and Adilabad ruins (both in Delhi), Chhatarpur Temple (in Delhi). 
  • There are several dozen lakes formed in the abandoned open pit mines in and around the sanctuary. 
  • It is contiguous to the seasonal waterfalls in Pali-Dhuaj-Kot villages of Faridabad and the sacred Mangar Bani.

Masai Mara

  • Maasai Mara, also sometimes spelled Masai Mara and locally known simply as The Mara, is a large national game reserve in Narok, Kenya, contiguous with the Serengeti National Park in Tanzania. 
  • It is named in honor of the Maasai people, the ancestral inhabitants of the area, who migrated to the area from the Nile Basin. 
  • Their description of the area when looked at from afar: "Mara" means "spotted" in the local Maasai language, due to the many short bushy trees which dot the landscape.
  • Maasai Mara is one of the wildlife conservation and wilderness areas in Africa, with its populations of lion, leopard, cheetah, and African bush elephant. 
  • It also hosts the Great Migration, which secured it as one of the Seven Natural Wonders of Africa, and as one of the ten Wonders of the World.

Serengeti National Park

  • Location: Eastern Mara Region and northeastern Simiyu Region and contains virgin savanna in northern Tanzania.
  • Serengeti is well known for largest annual animal migration in the world of over 1.5 million blue wildebeest and 250,000 zebras along with smaller herds of Thomson's gazelle and eland.
  • This national park is also home to the largest lion population in Africa. 
  • It is under threat from deforestation, population growth and ranching.

What is an optical fibre?

An optical fibre is a thin, flexible, and transparent fibre made of glass (high quality silica) or plastic that is used to transmit information in the form of light pulses.

These fibres can carry information, such as text, images, videos, telephone calls, and anything that can be encoded as digital information, across large distances almost at the speed of light.

image 58
  • Structure: An optical fibre consists of:
    • Core, which is the innermost part where light travels.
    • Cladding, which surrounds the core and helps contain the light within the core by reflecting it back into the core.
      • The core and cladding are usually made of materials with different refractive indices, allowing for the total internal reflection of light within the core.
      • The refractive index of the core is higher (denser medium) than the refractive index of the cladding (rarer medium). 
image 59

Reflection of Light:

  • Reflection is the bouncing back of light when it strikes/hits a surface.
  • The angle at which the light hits the surface (angle of incidence) is equal to the angle at which it reflects off the surface (angle of reflection), according to the law of reflection.

Refraction of Light:

  • Refraction is the bending of light when it passes from one medium to another with a different optical density/ refractive index.
  • The speed of light changes as it moves from one medium to another, causing the light to change direction. 

Total Internal Reflection:

  • Total internal reflection occurs when light travelling from a rarer medium to a denser medium, strikes the boundary of the medium at an angle greater than the critical angle.
  • If the angle of incidence is greater than the critical angle, all the light is reflected back into the original medium; none of it is refracted into the second medium.
  • This phenomenon is crucial in optical fibres, where it allows light signals to be transmitted over long distances by repeatedly undergoing total internal reflection within the core of the fibre. 
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How do optical fibres work?

  • The phenomenon known as total internal reflection is the basis of guiding light across long distances without a significant loss of optical power. 
  • With proper adjustments, the light can be kept bouncing within the glass with very little escaping outside. This is how signals encoded as electromagnetic waves can be fed into one end of an optical fibre, and they will reflect and bounce many times between the glass walls as they traverse several kilometres bearing the information in the signals.

Advantages: 

  • Optical waves have high bandwidth, thus allowing a high data-transmission rate, up to several terabits per second in a single fibre. 
  • It serves as a medium for carrying optical signals over long distances with minimal loss of signal quality (low signal attenuation). 
  • Unlike radio or copper-cable-based communication, fibre cables are also insensitive to external perturbations such as lightning and bad weather, and have immunity to electromagnetic interference. 

Hence, optical fibres possess the ability to transmit signals over long distances without significant degradation and provide the backbone for internet, telephone, and cable television systems.

Applications:

  • Telecommunications: Optical fibres are used to connect telephone lines, cable television systems, and internet service providers.
  • Medical imaging: Optical fibres are used in a variety of medical imaging applications, such as endoscopy, ultrasound, and laser surgery. They allow doctors to see inside the body without making a large incision.
  • Sensors: Optical fibres are used in a variety of sensors, such as temperature sensors, pressure sensors, and chemical sensors.
  • Lighting: Optical fibres are used in a variety of lighting applications, such as decorative lighting, stage lighting, and outdoor lighting.
  • Military: Optical fibres are used in a variety of military applications, such as communication, surveillance, and targeting. 

Human Endogenous Retrovirus Subfamily H

Context: Studies published on Human Endogenous Retrovirus Subfamily H (HERVH), a virus-like gene that helps maintain pluripotency, suggest that it has the potential to develop regenerative medicines. 

Process of Embryonic Development:

  • Inner Cell Mass (ICM): Before implantation in the mother's womb, cells in the early embryo organise into the inner cell mass. This mass of cells contains pluripotent cells.
  • Committed Cells and HERVH Gene Expression: The gene HERVH is expressed in pluripotent stem cells within the inner cell mass. These cells are considered the "winners" because they commit to specific lineages and contribute to the development of the embryo.
  • Non-Committed Cells and Transposon-Induced DNA Damage: Non-committed cells that do not express HERVH are found to express transposons, or jumping genes, which can cause DNA damage. The absence of HERVH leaves these cells vulnerable to uncontrolled transposon activity, leading to their elimination.

Human Endogenous Retrovirus Subfamily H (HERVH): 

  • HERVH is expressed in pluripotent stem cells, and its presence is associated with maintaining pluripotency, which is crucial for the development and formation of various tissues and organs in the body.

Role of HERVH in Prevention of Transposon Damage:

HERVH protects cells from the damage inflicted by transposons, also known as "jumping genes." 

  • Transposons can insert themselves into different regions of the genome, potentially causing DNA damage and cell death. 
  • HERVH expression, as identified in the study, serves to kickstart a protective mechanism, preventing the expression of transposons in most cells. Thus, safeguarding the integrity of the genetic material.

Role of HERVH in Regenerative Medicine: 

  • The study of the presence of HERVH and its potential application may contribute to the overall health and viability of the developing embryo.
  • By understanding the dynamics of HERVH expression and its impact on cell survival, we may discover new avenues to improve fertility treatments and address challenges in conception.
  • Reducing transposon activity in the early embryo, possibly by enhancing the expression of HERVH, could influence the fitness of the embryo, with potential applications in optimising in-vitro fertilisation (IVF) techniques.

Selection Arena:

The use of the term 'selection arena' in the study draws an analogy to the principles of natural selection observed in the animal kingdom. In the context of embryonic development, cells expressing HERVH are likened to the 'good' cells that will contribute to survival and embryonic development, while the cells that do not express HERVH are fated to be damaged and ultimately die.

Key Terms:

CellA unit of life, the basic structural, functional, and biological unit of all known living organisms.
Sperm Cell: Male reproductive cell.
Egg or Ovum Cell: Female reproductive cell.
Pluripotent Cell: A cell that has the ability to differentiate into many cell types.
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Zygote The cell formed by the fusion of two gametes (sperm and egg), which contains the full set of chromosomes (half from each parent).
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ImplantationThe process by which the developing embryo embeds itself into the lining of the uterus.
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Pluripotency Pluripotency is the ability of a cell to differentiate into a wide range of cell types.
DifferentiationThe process by which cells become specialised and distinct from one another.
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Inner cell massThe group of cells inside the blastocyst (an early stage of the embryo) that will give rise to the embryo.
Diagram of a cell structure

Description automatically generated
PlacentaAn organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the developing foetus.
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HERVHA gene expressed in pluripotent stem cells, playing a role in maintaining pluripotency.
Transposons (Jumping genes)DNA sequences that can move or "jump" to different positions within the genome.

Direct Beneficiary Transfer

The DBT(Direct Beneficiary Transfer) is a scheme, where the welfare benefits provided by the Government are directly credited to the bank or postal account of the accurately identified beneficiary. 

Most of the welfare benefits provided by the union and state governments are being delivered through DBT mechanism. E.g., PMKISAN, PAHAL scheme etc. 

Advantages of DBT mechanism

  • No leakages: DBT mechanism reduces the leakages of welfare benefits.
  • Inclusive: Providing welfare benefits through cash transfer directly to the bank accounts of the beneficiaries is more inclusive compared to the in-kind benefits as it can cover more beneficiaries overcoming the geographical/ topographical challenges. 
  • Cost-effective: Providing subsidies through cash transfers is cost-effective as it avoids the logistic costs involved in distribution of subsidised goods. E.g., Distribution of subsidised food grains under PDS involves cost of procurement, storage and distribution. 
  • Choice to the beneficiary: Rather than providing welfare benefits in-kind/subsidised goods, DBT provides choice to the beneficiary to purchase goods or service of his choice from the market.
  • Addresses regressive nature of some subsidies: Most of the subsidies are regressive in nature benefiting the richer households more than the poor. Earlier LPG subsidies benefited rich more than the poor as rich consumed more LPG cylinders than the poor households. Introduction of DBT enabled the government to put a ceiling on the subsidy benefits provided to a household. 
  • Doesn’t distort the market: Many subsidies provided in India involve price interventions. Such price interventions can distort the incentives of producers to increase their efficiency. E.g., Fertiliser subsidies disincentivised many vintage fertilizer plants to improve their efficiency as they are assured of getting compensated for the difference between the cost of production and government’s determined subsidised price. The inefficient firms fail to optimally utilize the scarce resources like Natural gas.

Introduction of DBT in fertilizer subsidies can overcome this challenge. 

Challenges

  • Inclusion/Exclusion errors: Status of beneficiary is dynamic. The aim of social protection is to ensure that person comes out of below poverty at some point of time. But absence of continuous evaluation of schemes and their beneficiaries results in providing benefits to unintended beneficiaries. For example, most of the welfare benefits provided today are based on Socio economic Caste Census survey conducted in 2011.
  • Misutilization: The DBT mechanism for providing welfare benefits are often criticised for their potential misuse by the beneficiary, as there is a chance that the cash is not utilized for the intended purpose. 
  • Inflation: Providing subsidies through direct cash transfer schemes may give more choice for the beneficiaries to consume goods and services from the market, but expose them to the market volatilities like inflation. 

Thus, measures such as regular revision of beneficiaries list and revising the cash transfers by linking them with an appropriate inflation index should be taken to overcome the limitations of DBT mechanism. 

Decentralised Autonomous Organisations

Context: The idea behind Decentralised Autonomous Organisations (DAO) is to create self-sustaining, community-driven entities governed by smart contracts on blockchain networks. However, the legality and regulatory framework surrounding DAOs remain a topic of debate. 

Decentralised Autonomous Organisation: 

  • DAOs are digital entities that operate without centralised control and are governed by smart contracts and the consensus of their members, often utilising cryptocurrencies as a means of decision-making and resource allocation.
image 56

Unique features:

  • DAO are governed by smart contracts on blockchain networks. The rules are encoded as a computer program that is transparent, controlled by the respective organisation members, without the need for intermediaries and not influenced by a government. 
  • They enable global, borderless cooperation. Participants, referred to as token holders, can propose and vote on decisions related to the organisation’s goals and resources (decentralised decision-making process). This fosters innovation and cooperation as ideas flow freely, unencumbered by hierarchical structures. 
image 55

Various use cases: 

  • Decentralised finance: Platforms like Compound and MakerDAO have introduced lending and borrowing services, enabling users to participate in the global financial ecosystem without relying on traditional banks. 
  • Digital Art: Artists can tokenize their creations and utilise DAOs to manage royalties and maintain control over their intellectual property. 
  • Supply chain management: DAO offers transparency and traceability in global supply chains, ensuring the authenticity and quality of products. 

Challenges: 

  • Susceptible to cyber attacks: The infamous DAO hack in 2016 exposed vulnerabilities in the code, leading to a contentious hard fork in the Ethereum blockchain (a hard fork refers to a change in a network’s protocol that makes previously invalid blocks and transactions valid, or vice-versa). This highlights the need for rigorous security audits and raises questions about the immutability of blockchain systems.
  • Accountability: Issues like smart contract vulnerabilities and security breaches introduce questions of legal recourse and liability. Legal liability within DAOs remains elusive, with decentralised decision-making and automated smart contracts making it difficult to assign responsibility for actions taken. 
  • Dispute resolution: Taxation of transactions within DAOs, identity verification, and compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations further add layers of complexity to the legal framework. Dispute resolution, often relying on code-based solutions, present a unique challenge in the absence of traditional legal mechanisms. 

What is the Piezoelectric effect?

Piezoelectric effect is the ability of a material to generate an electric charge in response to an applied mechanical stress or pressure.

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  • The phenomenon can be observed in some materials – including quartz, topaz, tourmaline, ceramics such as lead zirconate titanate (PZT), and even certain biological substances like bone and the tendons. 
  • Inverse piezoelectric effect: Some materials also display an inverse piezoelectric effect, where the application of an electric current induces a mechanical strain or deformation. 
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  • Mechanism:
    • Normally, the charges in a piezoelectric crystal are exactly balanced. The forces (electric dipole moments) of the charges exactly cancel out, leaving no net charge on the crystal faces.
    • When the crystal is stretched or compressed due to mechanical stress, this pushes the charges out of balance.
    • Now the dipole moments no longer cancel one another out and net positive and negative charges appear on opposite crystal faces. This gives rise to a small electric current. 
  • Applications: Used in pressure sensors, accelerometers, acoustic devices, high voltage generators, electronic frequency generators, microbalances, inkjet printers, electronic stethoscopes.  

Special Category status

Context: Bihar Cabinet passes resolution seeking special category status to State.

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Benefits provided to Special category states:

  • For Special Category States 90% of the Central assistance is given as grant and 10% as Loan. In the case of Non-Special Category States, however only 30% of NCA is given as grant and 70% as Loan.. 
  • Tax sops  such as concession on Customs duty, income tax and corporate tax etc. for industrial development. 

However, since 2014, special category status was formally done away with. 

Reasons:

  • Increased devolution: 14th finance commission has increased the vertical devolution to states to 42% (from 32% during 13th FC).
  • Changed formula: Since 14th finance commission has introduced factors like “Forest and ecology” in the formula for horizontal devolution, hilly and difficulty terrain states may receive increased devolution from the centre. 
  • Other grants from Finance commission: Apart from the devolution from divisible pool of taxes, finance commission also recommends grants like Local body grants, Disaster management grants, Revenue deficit grants (for those states who incurs revenue deficit even after receiving horizontal devolution funds) and other grants in accordance with Terms of Reference given by the government to the commission. 
  • Special support: Central government has been providing support to the states in the form of 
    • GST compensation for any tax revenue loss incurred to states for adopting GST mechanism.
    • 50 year Interest free loans to states for capital expenditure.

Arguments for Special category status:

  • Socio-economic and infrastructural backwardness. E.g: Bihar.
  • Loss of taxation rights to states under GST mechanism.
  • Though the share of divisible pool of taxes to states increased, there has been no significant increase in effective devolution due to increase in the share of cess and decreasing tax rates. (Cess income do not form part of divisible pool of taxes and hence not mandated to share with the states). 
  • Demographic composition: States like Bihar whose TFR is still higher than the national average, require support from the centre to take advantage of the demographic dividend. 

Though some states have genuine arguments for their demand for special category status, most of the demands are politically motivated. The sustainable solution for regionally balanced development is to improve Infrastructure creation, introduce marketing reforms in agriculture, efficient decentralisation for better governance.

Investor Risk Reduction Access platform

Context: India's stock exchanges, including BSE and NSE, have jointly developed the IRRA platform to reduce risks faced by investors due to certain technical glitches.

Need for IRRA:  With increasing dependence on technology in the securities market, there has been a rise in instances of glitches in trading members’ systems, some of which lead to disruption of trading services and investor complaints. In such instances, investors with open positions are at risk of non-availability of avenues to close their positions, particularly if markets are volatile.

Working of IRRA:

  • IRRA can be invoked by trading members when they are faced with any technical glitch at their end impacting their ability to service clients.
  • On invocation, the platform sends a link to the investors to access IRRA.
  • Once the investors are authorized to access the IRRA platform, investors can complete the pending orders and close their open positions. 

Thus, IRRA platform helps as a safety net in case of any technical glitches faced by a trading member or stock broker in a stock exchange.