Tag: Logistics Ease Across Different State (LEADS) 2023

UPSC DAILY CURRENT AFFAIRS (18TH DECEMBER, 2023) India-Oman Relation Syllabus: GS2/International Relations Context Oman’s head of state, Sultan Haitham bin Tarik is on his first visit to India since becoming Oman’s head of State in 2020. Key Highlights India and Oman announced the third tranche of $300 million for the Oman-India Joint Investment Fund. It is a 50-50 joint venture between the State Bank of India and the Oman Investment Authority created to channel funds into the fastest growing sectors of the Indian economy. Both the nations adopted “India-Oman Joint Vision: A partnership for future” that outlines the pathway for bilateral engagement in the coming decades and is based on the Oman Vision 2040, and India’s development vision till 2047. The two sides signed an agreement between the Financial Intelligence Unit of India and the National Centre for Financial Information of Oman to prevent money laundering . India and Oman are on track to sign a comprehensive economic partnership agreement (CEPA) during Oman’s head of state visit to India. India-Oman Relation Economic Cooperation: India is among Oman’s top trading partners. Bilateral trade in 2022-23 stood at around $12.3 billion between both the nations. India is the 2nd largest market for Oman’s crude oil exports for the year 2022 after China. India is also the 4th largest market for Oman’s non-oil exports for the year 2022 and 2nd largest source of its import after UAE. Defense Cooperation: India and Oman conduct regular biennial bilateral exercises between all three services. Army exercise: Al Najah Air Force exercise: Eastern Bridge Naval Exercise: Naseem Al Bahr Indian Diaspora: There are about 7,00,000 Indians in Oman, of which about 5,67,000 are workers and professionals. There are Indian families living in Oman for more than 150-200 years. Maritime Cooperation: Oman is at the gateway of Strait of Hormuz through which India imports one-fifth of its oil imports. India signed a pact with the country in 2018 to access the Duqm port of Oman. Agreements between India and Oman In 2022, the Central Bank of Oman (CBO) signed a Memorandum of Understanding (MoU) with the National Payments Corporation of India (NPCI) to link the payment systems between the two countries. Another MOU between Oman News Agency and Asia News International was exchanged. The MOU facilitates the exchange of news and information between both countries. Way Ahead Oman is a key pillar to India’s West Asia Policy. The strategic location of Oman in the Gulf region and India’s emergence as a global player further enhance the significance of their relationship. By building on their historical ties and adapting to the changing global landscape, India and Oman can continue to contribute to regional stability and prosperity. Logistics Ease Across Different State (LEADS) 2023 Syllabus: GS3/Economy, Infrastructure Context The Ministry of Commerce & Industry has released the 5th edition of “Logistics Ease Across Different States (LEADS) 2023” report. Logistics Ease Across Different States (LEADS) Index Logistics is the management of the flow of resources such as cargo, documents, information and funds through a range of activities and services between points of origin and destination. LEADS was conceived on the lines of the Logistics Performance Index of World Bank in 2018. The index is a composite indicator to assess international trade logistics across states and Union territories. It is based on a stakeholders’ survey conducted by Deloitte for the ministry of commerce and industry. Performance highlights from LEADS 2023 Coastal Group Achievers: Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu Fast Movers: Kerala, Maharashtra Aspirers: Goa, Odisha, West Bengal Landlocked Group Achievers: Haryana, Punjab, Telangana, Uttar Pradesh Fast Movers: Madhya Pradesh, Rajasthan, Uttarakhand Aspirers: Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand North-East Group Achievers: Assam, Sikkim, Tripura Fast Movers: Arunachal Pradesh, Nagaland Aspirers: Manipur, Meghalaya, Mizoram Union Territories Achievers: Chandigarh, Delhi Fast Movers: Andaman & Nicobar, Lakshadweep, Puducherry Aspirers: Daman & Diu/ Dadra & Nagar Haveli, Jammu & Kashmir, Ladakh Issues with Logistics sector in India Lack of Technology Adoption: Slow adoption of advanced technologies, such as Internet of Things (IoT), RFID (Radio-Frequency Identification), and automation. The lack of technological integration can result in manual processes, errors, and increased costs. Infrastructure Bottlenecks: Inadequate infrastructure, especially in terms of roads, ports, and last-mile connectivity, along with Poor road conditions and congestion can lead to delays and increased costs. Higher logistics costs: India’s expenditure on logistics costs amounts to approximately 13-14% of its Gross Domestic Product (GDP), which is considerably higher than the global average of around 8%. Inefficient Warehousing: Inefficiencies in warehousing, such as outdated infrastructure, lack of automation, and inadequate storage capacity, contribute to higher logistics costs. Limited Modal Choice: Overreliance on road transport and limited use of alternative modes such as rail and coastal shipping contribute to higher logistics costs. Steps taken by Government of India Grant of Infrastructure status to Logistics sector: The government has granted infrastructure status to the logistics sector, enabling the industry to access cheaper finances. PM Gati Shakti’s initiative: It is a National Master Plan for multimodal connectivity, to reduce logistics costs and boost the economy by 2024-25. National Logistics Policy (NLP): In 2022, NLP was launched to ensure quick last-mile delivery, end transport-related challenges, save time and money for the manufacturing sector and ensure desired speed in the logistics sector. The policy aims to reduce logistics costs from the current 14-18% of GDP to 8% by 2030, aligning with global best practices. Dedicated Freight Corridors (DFCs): The government is working on the construction of dedicated freight corridors such as the Eastern Dedicated Freight Corridor and the Western Dedicated Freight Corridor. Bharatmala Pariyojana: This is a flagship road and highways development program aimed at improving connectivity across the country. The project includes the development of economic corridors, inter-corridors, and feeder routes. Sagarmala Project: This initiative focuses on promoting port-led development to reduce logistics costs for domestic and export-import trade. It includes the development of ports, coastal shipping, and inland waterways. Way Ahead Digitalisation: It enables the digitisation of documents and transactions, reducing paperwork and improving the overall efficiency of logistics operations. Data analytics: It can provide valuable insights into supply chain performance, allowing for better decision-making and optimisation of routes, inventory management, and resource allocation. Technology upgradation: Technologies such as barcode scanning, RFID, and real-time tracking can significantly enhance tracking and tracing capabilities, improving operational efficiency and reducing costs. Warehouse efficiency: Improved inventory accuracy, reduced warehouse stock, and optimized on-shelf stock availability, can enhance overall warehouse efficiency. Conclusion At a time when India is increasingly pitching itself as a possible alternative to China, greater competitiveness in logistics could help the country fend off the challenge from competitors such as Vietnam and Indonesia and improve overall manufacturing competence. Economic pact between India and EFTA States Syllabus: GS3/Economy In Context Trade and Economic Partnership Agreement (TEPA) Negotiations between India and the European Free Trade Association (EFTA) on a trade deal have run into a logjam because of Switzerland’s concerns. About Talks on the trade deal began in 2008 and negotiations resumed again in 2016. The latest round of negotiations covered trade in goods and services, rules of origin, Intellectual property rights (IPR), trade and sustainable development, sanitary and phytosanitary measures, technical barriers to trade, trade remedies, and customs and trade facilitations. About European Free Trade Association (EFTA) The European Free Trade Association (EFTA) is the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland. It was set up in 1960 by its then seven Member States for the promotion of free trade and economic integration between its members. Trade with India: In 2022, the combined EFTA-India merchandise trade surpassed USD 6.1 billion. The primary imports to the EFTA States consisted of organic chemicals (27.5%), while machinery (17.5%) and pharmaceutical products (11.4%), constituted the main exports to India. Significance of TEPA Between EFTA and India Market Access: The EFTA states has imports and exports of goods and services close to $1.3 trillion in 2021, making them the 10th largest merchandise traders and eighth largest services traders worldwide. It would provide Indian businesses with improved access to the markets of EFTA member countries. Diversification of Trade Partners: Reducing dependency on a few key trading partners can help mitigate risks associated with economic fluctuations in specific regions. Tariff Reductions: The trade agreements typically involves the reduction or elimination of tariffs on goods traded between the participating countries. This can make Indian goods more competitive in EFTA markets, potentially boosting exports. Technology and Innovation Exchange: EFTA companies are world leaders in pharmaceuticals, biotechnology, machinery manufacturing, R&D-driven technology products, geothermal-related technologies, marine technology, energy-related services, financial services, banking and insurance. Collaboration in research, technology transfer, and innovation can be enhanced through a trade agreement. Potential for Increased Foreign Direct Investment (FDI): It can attract foreign direct investment by creating a more favorable and predictable business environment. Mutually Benificial Trade: EFTA has a track record of negotiating mutually beneficial trade agreements, which to date cover an extensive network of 29 free trade agreements (FTAs) with 40 partner countries. Concerns Divergent Regulatory Standards: Harmonizing standards related to product quality, safety, and environmental regulations is crucial for smooth trade, and differences may lead to additional compliance costs for businesses. Intellectual Property Rights (IPR): Both parties need to agree on the standards and enforcement mechanisms for patents, copyrights, trademarks, and other intellectual property issues. Services and Investment Barriers: Concerns may arise if there are obstacles to the free flow of services or restrictions on foreign investment in certain sectors. Labor and Environmental Standards: Ensuring that the trade deal includes provisions for maintaining or improving labor rights and environmental protections is essential. Way Ahead The potential benefits of a TEPA between India and EFTA states are significant. The agreement will foster a strong partnership and increase trade between trusted democratic partners that share values such as promoting sustainable development and gender equality. EFTA and India are committed to make these trade talks priority and aims for a swift process towards a balanced agreement with strong political involvement and guidance. UAE Consensus on Fossil Fuel Syllabus: GS 3/Environment, Conservation In News The COP28 concluded in Dubai with 198 signatory countries agreeing that the world must “transition” away from fossil fuels in a “just, orderly and equitable manner” to achieve net zero by 2050. About UAE Consensus It was reached by 198 participating Parties, outlining an ambitious climate agenda aimed at keeping the goal of limiting global warming to 1.5°C within reach. It is a comprehensive document that calls for a transition away from fossil fuels to achieve net zero by 2050. It encourages Parties to submit economy-wide Nationally Determined Contributions and sets specific targets, including tripling renewables and doubling energy efficiency by 2030. Significance This is the first time since 1995( first COP in Berlin) that there is a formal acknowledgement that emissions from fossil fuels are the main culprit driving global warming. So far, all agreements have only spoken of the need to stem “greenhouse gas emissions. Three-fourth of such emissions and 90% of carbon dioxide are the result of burning coal, oil and gas. It was only in the 26th edition of the COP, in Glasgow in 2021, that countries agreed to tackle coal — the fossil fuel with the biggest global-warming footprint — by agreeing to “phase down” its use. Now all fossil fuels have been included in the Dubai Consensus, it brings parity among fuels and acknowledgement that they all need to be done away with for the world to have a chance at preventing global, average temperatures from rising 1.5 degree Celsius over pre-industrial levels. The “transition” could play a role in “facilitating the energy transition while ensuring energy security. Issues and Challenges The issue of a phase-out or phase-down is complicated by the terms not having agreed definitions and by the highly uncertain role of technologies to “abate” emissions, such as carbon capture and storage. Power from natural sources of power such as solar and wind are not as easily available, on demand, as fossil fuel: the sun because of its unavailability at night and wind due to the temperamental nature of the ocean and atmosphere. The infrastructure to store all of the energy produced this way is grossly inadequate. Lack of financial commitments and discrepancies between words and actions raise concerns about global commitment to climate action. Large, developing countries like India and China, have protested against the singling out of coal among fossil fuels, on the grounds that they need them for lifting their masses out of poverty and providing energy security. India, while rich in coal reserves, is still an importer of the product and has limited oil and gas reserves. China is rich in both coal and gas. India has resisted pressure to cut methane emissions on the grounds that most of its methane results from the agricultural sector. Suggestions and Way Forward COP28 closed with an agreement that signals the “beginning of the end” of the fossil fuel era by laying the ground for a swift, just and equitable transition, underpinned by deep emissions cuts and scaled-up finance. Reducing fossil fuel dependence is a key strategy for mitigating climate change. Mitigation encompasses all efforts to reduce pollutants into the atmosphere, including emissions reduction and transitioning to renewable energy. Developing countries still dependent on fossil fuels are left without robust guarantees for adequate financial support in their “urgent and equitable transition to renewable energy.” Therefore “It is essential to come together around real, practical and meaningful climate solutions that match the scale of the climate crisis. For Example ,Ethanol blending can help to reduce dependence on oil and gas imports. India can accelerate deployment of RE and provide more incentives through investing in R&D on storage and green hydrogen, and further providing fiscal support. IEA’s ‘Coal 2023’ Report Syllabus: GS3/Economy/ Environment & Conservation In Context The International Energy Agency (IEA) has released its annual coal market report named Coal 2023. About Since its first publication in 2011, the IEA’s annual Coal Report has served as the global benchmark for the medium-term forecast of coal supply, demand and trade. Major Findings of the Report Global coal consumption: It reached a record high in 2022 by rising 4% year-on-year. In China, demand rose by 4.6%, in India, it increased by 9%, in Indonesia, it shot up by 32%. Coal Demand in 2023: It is rising by 1.4% in 2023. Consumption declined sharply in most advanced economies in 2023, including record drops in the European Union and United States of around 20% each. Demand in emerging and developing economies remains very strong, increasing by 8% in India and by 5% in China in 2023. Decline in Demand in 2026: Coal demand to fall by 2.3% by 2026 compared with 2023 levels, even in the absence of governments implementing stronger climate policies. Renewable Capacity Expansion: More than half of the global renewable capacity expansion is set to occur in China, which currently accounts for over half of the world’s demand for coal. Production of Coal: China, India and Indonesia – the three largest coal producers globally – are expected to break output records in 2023. These three countries now account for more than 70% of the world’s coal production. Global Coal Trade: It is expected to contract as demand declines in the years ahead. However, trade will reach a new high in 2023, driven by strong growth in Asia. Coal Sector in India Coal Reserves: India has significant coal reserves, and it is one of the world’s largest coal producers. The major coal fields in India are located in the eastern states of Jharkhand, Odisha, and West Bengal, as well as in central states like Chhattisgarh and Madhya Pradesh. Coal Production: India is among the top 3 leading coal producers globally. The Coal India Limited (CIL) is the state-owned coal mining company and the largest government-owned-coal-producer in the world. Coal Consumption: The power demand in India is surging. In 2022, the requirement grew about 8 – 9%. Industrial and commercial activity are among the biggest consumers of energy in the country. Import and Export: Despite being a significant coal producer, India has also been importing coal to meet the growing demand. This is due to issues such as transportation challenges and the need for specific types of coal for certain industries. Concerns in Transition to Renewable Energy Sources Currently, out of the total energy produced in the country, only 22% is from renewable sources. Fossil fuels, mainly coal, still provide 75% of India’s power supply. Dependency on Natural Factors: Energy sources like solar and wind are variable as they rely on natural factors like sunlight, wind and water availability. To ensure a steady supply, India has to heavily invest in battery storage. Concerns in Hydropower Projects: Numerous hydropower projects are under construction or in the planning stages in the Himalayan region. But they have come under fire as the projects have caused ecological damage and raised concerns about the potential conflicts over water resources in the area. Nuclear Energy: The country’s plans to generate energy with the help of nuclear power plants have not really taken off. During 2021-22, the plants produced about 3.15% of the total electricity generated in India. Infrastructure Development: The transition to renewable energy requires significant infrastructure development. The speed and scale of this infrastructure development can be a challenge for a country as large and diverse as India. Grid Integration: Integrating renewable energy into the existing power grid is a complex task. The grid must be flexible and capable of handling fluctuations in supply. Steps Taken by Government for Transition to Renewable Energy Sources Aim: India aims to reach 500 GW of renewable energy capacity by 2030, about three times the current capacity of about 180 GW. National Solar Mission (NSM): It was launched in 2010, it has set ambitious targets for solar capacity installation, including grid-connected and off-grid solar power projects. Green Energy Corridors: The Green Energy Corridor project focuses on enhancing the transmission infrastructure to facilitate the integration of renewable energy into the national grid. Renewable Purchase Obligation (RPO): This requires power distribution companies and large electricity consumers to procure a certain percentage of their power from renewable sources, encouraging the demand for renewable energy. Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM): It includes the installation of solar pumps, solarization of existing grid-connected agricultural pumps, and the establishment of solar power plants on barren or fallow land. International Solar Alliance (ISA): India played a key role in establishing the International Solar Alliance, a coalition of solar-resource-rich countries to address their energy needs through the promotion of solar energy. Facts In News Yogmaya Temple Syllabus: GS1/Culture Context Yogmaya Temple is believed to have come up during the period of the Mahabharata that does not exist anymore. About the temple Lala Sidhu Mal, also known as Sed Mal, a noble in the court of Mughal Emperor Akbar II, built the temple between 1806 and 1837 at present area of Mehrauli in Delhi. It is believed that the temple was a focal point of Akbar II’s rule. It is believed that an ancient Yogini Temple had existed here, that had been patronised by Prithviraj Chauhan. The region around the temple was known as Yoginipura in ancient Jain texts. Importance The Yogmaya Temple is an integral part of the annual Phool Walon Ki Sair, an interfaith festival of Delhi. The temple is close to the Iron Pillar in the Qutb Complex, and within the Lal Kot walls, the first fortress citadel of Delhi, constructed by the Tomar/Tanwar Rajput King Anangpal I around AD 731. Kaleshwaram Project Syllabus: GS1/Geography Context The allegations of lapses in the completion of Kaleshwaram Irrigation Project were raised. About The Kaleshwaram Lift Irrigation Project (KLIP) is a multi-purpose irrigation project on the Godavari River in Kaleshwaram, Bhupalpally, Telangana. The project starts at the confluence point of Pranahita River and Godavari River. The objective of the project includes providing irrigation water to a large area of agricultural land, and meeting the drinking water requirements. Godavari River Origin: The River rises at Trimbakeshwar, Nashik, Maharashtra in the Western Ghats. Length:The Godavari River is India’s second longest river (Dakshina Ganga) after the Ganga river, with a length 1,465 km. Basin: The main river flows through the States of Maharashtra, Telangana, Chhattisgarh, and Andhra Pradesh and drains into the Bay of Bengal. The river basin is considered to be divided into 3 sections: Upper: Source to the confluence with Manjira, Middle: Between confluence of Manjira and Pranhita and Lower: Pranhita confluence to mouth. Tributaries: Banganga, Purna, Pranhita, Indravati, Pravara, Sindphana, Manjira, Penganga, Wardha,Wainganga, Maner and Sabri. Dams: Jayakwadi Dam, Devadula Irrigation Scheme, Polavaram Project etc. Pranahita River Pranahita river is the largest tributary of the Godavari river covering about 34% of its drainage basin. It is a confluence of various other smaller tributaries like Wardha, Penganga and Wainganga Rivers. Syllabus :GS 2/Governance/GS1 /Culture Viksit Bharat Sankalp Yatra, and Kashi Tamil Sangamam In News Recently, the Prime Minister of India addressed the Viksit Bharat Sankalp Yatra in Varanasi and also inaugurated the second edition of the Kashi Tamil Sangamam. About Viksit Bharat Sankalp Yatra The Viksit Bharat Sankalp Yatra is a government initiative being undertaken across the country, to raise awareness about and track the implementation of flagship central schemes, such as Ayushman Bharat, Ujjwala Yojana, PM Surkasha Bima, PM SVANidhi, etc. It is being undertaken with the active involvement of various Union ministries and state governments. Objectives : It aims to create awareness among citizens about various welfare schemes and seek their participation in the spirit of “Jan Bhagidari” to ensure 100% saturation of schemes. It is the largest-ever outreach initiative of Government of India and will cover 2.60 lakh Gram Panchayats and 4000+ urban local bodies across the nation by January 25, 2024. In a short span of just one month, the Yatra has reached more than 2.50 crore citizens across 68,000 Gram Panchayats (GPs) in the country. Kashi Tamil Sangamam It will celebrate, reaffirm and rediscover the age-old links between Tamil Nadu and Kashi – two of the country’s most important and ancient seats of learning. It is led by the Ministry of Education and is supported by the State Government of Uttar Pradesh and the Central Ministries of Culture, Railways, Tourism, Information and Broadcasting besides academic and cultural institutions in the Central and State sphere. Themes: Centred around a series of themes that cover various facets of knowledge – literature, ancient texts, philosophy, spirituality, music, dance, drama, yoga, Ayurveda, handlooms, handicrafts as well as the modern innovations, trade exchanges, edutech and other gen-next technology etc. Objectives : It aims to bring these two traditions of knowledge and culture closer together. It also has the objective of rediscovering and strengthening the ancient intellectual, cultural, spiritual and artisanal connection between the two cultures.” Surat Diamond Bourse (SDB) Syllabus: GS3/Economy In Context Prime Minister Narendra Modi inaugurated Surat Diamond Bourse (SDB), the world’s largest and modern centre for international diamond and jewellery business. About It is aimed at shifting the diamond trading business from Mumbai to Surat, which is the hub of diamond cutting and polishing with thousands of factories across the city. It will be a global center for trading of both rough and polished diamonds as well as jewelry. Secure Email Network Syllabus: GS3/Awareness in the field of IT (Cyber Security) Context: In the wake of cyberattacks, the Union government sets up a secure email network for staff of critical Ministries and departments. More about the news The e-mail system that works on Zero Trust Authentication (ZTA) has been designed by the National Informatics Centre (NIC). Through this, the government has activated two-factor authentication, other than passwords, facial recognition or biometrics. The log-in and log-out times are recorded and monitored. Zero Trust Authentication It is a new security model that effectively adapts to the complexity of the modern environment, embraces the hybrid workplace, and protects people, devices, apps, and data wherever they’re located. Significances Enhance Productivity: Empower users to work more securely anywhere and anytime, on any device. Cloud migration: Enable digital transformation with intelligent security for today’s complex environment. Network security solution: It protects your network infrastructure against advanced threats and malware. Data security solution: It protects enterprise data across multiple environments, meets privacy regulations and simplifies operational complexity. National Informatics Centre (NIC)– It is a technology partner of the Government of India under the Ministry of Electronics and Information Technology (MeitY).– It was established in 1976.Objective:– To provide technology-driven solutions to Central and State Governments, like:a. Design and Develop IT Systems for the Government;b. Provide ICT Infrastructure to the Government;c. Explore & Advise on use of Emerging TechnologiesDigital India Corporation (DIC)– It is a not-for-profit company set up by the Ministry of Electronics and Information Technology (MeitY).a. Earlier, it was known as ‘Media Lab Asia’.– It helps countrywide critical digital infrastructure to ‘operate, manage and migrate existing projects as well as future projects’.– It is currently working on projects of national importance such as Digilocker, Poshan Tracker, MyScheme, Umang, APISetu, NCW, Kisan Sarathi, Academic Bank of Credits, etc., which run on cloud services provided by Amazon Web Services.

Tag: Logistics Ease Across Different State (LEADS) 2023

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