National Current Affairs – UPSC/IAS Exams-6th July 2019

by Mentors4ias · July 7, 2019

How will global warming impact unemployment in India?

Topic: Economy

In News: A report by the International Labour Organization (ILO) says that India could lose 34 million jobs by 2030 because of global warming.

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Decrease in productivity means a 8% reduction in working hours. India’s agriculture and construction industries are expected to be hit the hardest.
In its “Working on a Warmer Planet” report, the ILO said that by 2030 in the next two decades the whole world will see a 2% loss in productivity because the temperature will be too hot for workers.
This means that 80 million jobs across the world will be lost.
India will be one of the most impacted countries by the rising levels of global warming because labourers in the country will feel “heat stress.” India’s depe\
ndency on agriculture and development industries like construction makes it particularly vulnerable.
“Although most of the impact in India will be felt in the agricultural sector, more and more working hours are expected to be lost in the construction sector, where heat stress affects both male and female workers.”
The ILO has analysed “heat stress” or the increase in body heat from working and the outside temperature. The organisation found that the greater the heat stress, the less able humans will be able to work in labour-intensive jobs.
The rising levels of heat stress will also create more income inequality and a greater urban-rural divide.
Significantly, during the 2005-15 period, higher levels of heat stress were associated with larger out-migration flows a trend not observed for the preceding 10-year period.
Asian and African countries are predicted to see the most unemployment and lack of productivity and resultant declining GDPs. Thailand, Cambodia, India and Pakistan will see an erosion of around 5% in their GDPs by 2030.
Even developing countries that will increasing concretise their cities will feel the impact of rising temperatures because of the loss of green cover.

Way Forward:

To really protect Indians from the adverse effects of climate change, government needs to adopt a dual-focus on sustainability and growth and invest in commodities, services, and technology that benefits the environment in the long run while also spurning development in India.

Source : The Hindu

Surrogacy regulation bill

Topic: Social Justice

In News: The Cabinet approved the introduction of Surrogacy (Regulation) Bill, 2019 that aims to prohibit commercial surrogacy in India. The Bill had been passed by the last Lok Sabha but lapsed after dissolution of the House.

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The Bill proposes to regulate surrogacy in India by establishing a National Surrogacy Board at the central level and state surrogacy boards and appropriate authorities in the state and Union Territories.
The purpose of the Bill is to ensure effective regulation of surrogacy, prohibit commercial surrogacy, and allow ethical surrogacy.
While commercial surrogacy will be prohibited, including sale and purchase of human embryos and gametes, ethical surrogacy for needy couples will be allowed on fulfillment of stipulated conditions.
It will also prevent exploitation of surrogate mothers and children born through surrogacy.

Back ground:

India has emerged as a surrogacy hub for couples from other countries and there have been reports concerning unethical practices, exploitation of surrogate mothers, abandonment of children born out of surrogacy, and rackets involving intermediaries importing human embryos and gametes.
The 228th report of the Commission of India has recommended prohibiting commercial surrogacy and allowing altruistic surrogacy by enacting suitable legislation.

Source : The Hindu

Core Investment Companies

Topic: Economy

In News: With corporate group structures becoming more complex and layered, the Reserve Bank of India (RBI) has now set up a working group to review the regulatory and supervisory framework for core investment companies (CICs).

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The six-member working group will examine the current regulatory regime for CICs and suggest changes to the current approach for their registration, including the practice of multiple CICs being allowed within a group.
Additionally, it will also suggest measures to strengthen corporate governance and disclosure requirements for CICs and assess the adequacy of supervisory returns submitted by these entities.
The working group has also been tasked with recommending appropriate measures to enhance RBI’s off-sight surveillance and on-site supervision over CICs.
The RBI had in August 2010 introduced a separate framework for the regulation of systemically important CICs after recognising the difference in the business model of a holding company compared to other non-banking financial companies.

About Core Investment Companies:

CICs are non-banking financial companies with asset size of ₹100 crore and above which carry on the business of acquisition of shares and securities, subject to certain conditions.
CICs, which are allowed to accept public funds, hold not less than 90% of their net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies.
Investments of CIC in the equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies constitutes not less than 60% of its net assets as mentioned in clause.

Source : The Hindu

Coral Rehab Programme

Topic: Environment and Ecology

In News: The National Centre for Coastal Research’s (NCCR) proposal of dropping ‘melted plastic rocks or slabs’ on the seabed for growing coral reefs and address the problem of disposal of plastic waste has drawn criticism from the Gulf of Mannar (GoM) Marine National Park, which has been implementing coral rehabilitation programme since 2002.

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The NCCR suggested that plastic waste materials could simply be wound around as hard substrates as a way of disposing of them and help build coral colonies.
Therefore, researchers have expressed apprehensions that the NCCR’s ‘innovative idea’ for the growth of marine organisms like algae for coral reefs building would destroy the existing coral reef colonies.
Corals in the Gulf of Mannar were already stressed and bleached under climate change and the NCCR’s idea would turn the reefs into graveyards.

About the Coral Rehabilitation Programme:

The Gulf of Mannar Marine National Park has been implementing the corral rehabilitation programme since 2002.
It has so far covered eight sq km areas in GoM region, where coral reefs suffered bleaching and degradation due to climate change and high temperature.
The program employs ‘concrete frame slabs’ method.
Corals would start growing in 60 days using the concrete frames as sub-state. The acropora coral species grow by 10 to 12 cm per year on these slabs.

Source : The Hindu

Artificial gravity

Topic: Science and Technology

In News: A team from the University of Colorado is working on making a device which could create artificial gravity in space.

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Artificial gravity is a force that simulates the effect of gravity in a spaceship.
It is not caused by the attraction to the Earth but is instead caused by acceleration or centrifugal force.
Artificial gravity or rotational gravity is thus the appearance of a centrifugal force in a rotating frame of reference.
The research centrifuge is called as ‘Human Eccentric Rotator Device’ (HERD) and the device is compact enough to fit into a small room.
A rotating circular space station can create artificial gravity.The rate of rotation is necessary to duplicate the Earth’s gravity depends on the radius of the circle.
Future astronauts heading into an artificial-gravity room to spend time on a small revolving system.It is built with the aim of counteracting the negative effects of weightlessness.

Source : The Hindu

Government eases angel tax norms

Topic: Economy

In News: To encourage start-ups in the country, Finance Minister Nirmala Sitharaman on announced a series of measures for the sector, including easing of the much-debated angel tax.

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To resolve the ‘angel tax’ issue, the start-ups and their investors who file requisite declarations and provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums.
Additionally, the issue of establishing identity of the investor and source of his funds will be resolved by putting in place a mechanism of e-verification.
In addition, special administrative arrangements shall be made by Central Board of Direct Taxes for pending assessments of start-ups and redressal of their grievances.
At present, start-ups are not required to justify fair market value of their shares issued to certain investors, including Category-I Alternative Investment Funds (AIF), Goverment has proposed to extend this benefit to Category-II Alternative Investment Funds also. Therefore, valuation of shares issued to these funds shall be beyond the scope of income tax scrutiny.
The government proposed to relax some of the conditions for carry forward and set off of losses in the case of start-ups.
The proposed programme on start-ups will serve as a platform for promoting start-ups, discussing issues affecting their growth, matchmaking with venture capitalists and for funding and tax planning.

About Angel Tax:

Angel tax is applicable to unlisted companies that have raised capital through sale of shares at a value above their fair market value. This excess capital is treated as income and taxed accordingly. This tax predominantly affects start-ups and the angel investments they attract.

Source : The Hindu

Chabahar Port development

Topic: International Relations

In News: The government has allocated ₹45 crore for India’s building activities in the port of Chabahar Iran. This is a reduction from the previous year’s allocation of ₹150 crore.

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India is at the forefront of the construction of Chabahar port which is a major regional initiative from India. India’s works at the port received a waiver from the anti-Iran sanctions of the U.S.
Iran’s Chabahar port is located on the Gulf of Oman and is the only oceanic port of the country. The port gives access to the energy-rich Persian Gulf nations’ southern coast.
The first and foremost significance of the Chabahar port is the fact that India can bypass Pakistan in transporting goods to Afghanistan. Chabahar port will boost India’s access to Iran, the key gateway to the International North-South Transport Corridor that has sea, rail and road routes between India, Russia, Iran, Europe and Central Asia.
Chabahar port will be beneficial to India in countering Chinese presence in the Arabian Sea which China is trying to ensure by helping Pakistan develop the Gwadar port. Gwadar port is less than 400 km from Chabahar by road and 100 km by sea.
With Chabahar port being developed and operated by India, Iran also becomes a military ally to India. Chabahar could be used in case China decides to flex its navy muscles by stationing ships in Gwadar port to reckon its upper hand in the Indian Ocean, Persian Gulf and Middle East.
With Chabahar port becoming functional, there will be a significant boost in the import of iron ore, sugar and rice to India. The import cost of oil to India will also see a considerable decline. India has already increased its crude purchase from Iran since the West imposed ban on Iran was lifted.
From a diplomatic perspective, Chabahar port could be used as a point from where humanitarian operations could be coordinated.