PRELIMS CURRENT AFFAIRS – 14/08/24

01.With reference to National Programme for Organic Production,consider the following statements:

1. The Agricultural and Processed Food Products Export Development Authority is implementing the National Programme for Organic Production.
2. The programme involves the accreditation of Certification Bodies, standards for organic production, promotion of organic farming and marketing 
3. The NPOP standards for production and accreditation have been recognized by the European Commission for unprocessed plant products as equivalent to their country standard.

How many of the statements given above is/are correct?

1. Only one
2. Only two
3. All three
4. None

Answer: (c)All three

In News: Organic farmers want certification cost lowered

Explanation:

• The Agricultural and Processed Food Products Export Development Agency (Apeda), an arm of the Commerce Ministry, is unable to help farmers get certification for their organic produce at a lower cost. 
• Official sources said under the National Programme for Organic Production (NPOP), certification is done through a cluster approach to minimise the costs as issuing it to individual farmers is costlier.
• The cost of certification by various agencies/companies for individual farmers is over ₹1 lakh, which they cannot afford. 
• Farmers want Apeda to step in but a fund crunch in the export promotion body is preventing such help to be extended to farmers in the form of a subsidy or grant. 
• The annual budgetary allocation of Apeda is fixed at ₹80 crore since 2022-23 — a reduction from ₹85 crore allotted in 2021-22. 
• The APEDA, Ministry of Commerce & Industries, Government of India is implementing the National Programme for Organic Production (NPOP).Hence statement 1 is correct.
•  The programme involves the accreditation of Certification Bodies, standards for organic production, promotion of organic farming and marketing etc.Hence statement 2 is correct. 
• The NPOP standards for production and accreditation have been recognized by the European Commission and Switzerland for unprocessed plant products as equivalent to their country standards.Hence statement 3 is correct. 
• With these recognitions, Indian organic products duly certified by the accredited certification bodies of India are accepted by the importing countries. 
• APEDA is also in the process of negotiation with Australia, South Korea, Taiwan, Canada, Japan etc.

Source:

https://epaper.thehindubusinessline.com/ccidist-ws/bl/bl_mumbai/issues/95046/OPS/GO1D6MLNK.1+GN4D6ODIR.1.html

02.With reference to Base erosion and profit shifting (BEPS) Initiative,consider the following statements:

Statement -I: The OECD inclusive framework on Base Erosion Profit Sharing  started in 2015 to tackle global taxation challenges

Statement -II: The framework consists of 15 actions that equip countries to counter tax avoidance

Which one of the following is correct in respect of the above statements?

1. Both Statement – I and Statement – II are correct and Statement – II is the correct explanation for Statement – I
2. Both Statement – I and Statement – II are correct and Statement – II is not the correct explanation for Statement – I
3. Statement – I is correct but Statement – II is incorrect
4. Statement – I is incorrect but Statement – II is correct

Answer: (b)Both Statement – I and Statement – II are correct and Statement – II is not the correct explanation for Statement – I

In News:Can a global minimum tax work? 

Explanation:

• Base Erosion and Profit Shifting Initiative (BEPS) refers to tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to locations with nil or low tax rates and no/little economic activity, resulting in immense loss of tax revenues across nations.
•  The OECD/G20 inclusive framework on BEPS started in 2015 to tackle global taxation challenges concertedly.Hence statement 1 is correct. 
• The framework consists of 15 actions that equip countries to counter tax avoidance.Hence statement 2 is correct.
•  The rapid digitalization of the global economy and its associated challenges resulted in the transition to a two-pillar approach.
•  The first pillar involves solutions for determining the allocation of taxing rights. 
• This is applicable to large multinational enterprises (MNE) and countries are empowered to tax MNEs with profits exceeding 10 percent of their sales at a proposed effective rate of 25 per cent. It focuses on reallocating taxing rights to market jurisdictions, where MNEs generate substantial profits irrespective of their physical presence. 
• The timeline for adopting and implementing Pillar One lacks clarity due to the need for greater acceptance among countries. 
• Pillar Two is designed to ensure that MNEs pay a minimum level of tax on profits. 
• The strategy allows other countries to impose a ‘top-up’ tax on an MNE operating in its jurisdiction if the effective tax rate in the source country is below the agreed minimum rate

BEPS 15 Action Plan:

• Action 1 -The digital economy
• Action 2 -Hybrid mismatch arrangements
• Action 3 -Controlled foreign companies (CFC) regimes
• Action 4 -Financial payments
• Action 5 -Harmful tax practices
• Action 6 -Treaty abuse
• Action 7 -Permanent establishment (PE) status
• Action 8 -Transfer pricing and intangibles
• Action 9 -Transfer pricing and risks/ capital
•  Action 10 -Transfer pricing and other high-risk transactions
• Action 11 -Data and methodologies
• Action 12 -Disclosure of aggressive tax planning
• Action 13 -Transfer pricing documentation
• Action 14 -Dispute resolution mechanisms
• Action 15 -A multilateral instrument

Source:

https://www.thehindubusinessline.com/opinion/can-a-global-minimum-tax-work/article68521604.ece

03.With reference to Rapid prototyping centres,consider the following statements:

1. It is  applied research facilities that help businesses scaleup prototypes faster, and take products to the market quickly.
2. These units essentially help create a commercial manufacturing structure, on a pilot scale, aiding businesses formalise standards and practices for sourcing, manufacturing and quality control.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2 
4. Neither 1 nor 2

Answer: (c)Both 1 and 2 

In News:Battery cell manufacturing: Centre, stakeholders to collaborate for developing rapid prototyping centres

Explanation:

• In a bid to scale up India’s capabilities in battery cell manufacturing, the government, academia and industry are collaborating to create a country-specific framework for establishing Rapid Prototyping Centres (RPCs).
•  The Department of Science and Technology (DST) held consultations with stakeholders last month on developing India-specific RPCs with appropriate governing structure.
•  It was decided that the modalities regarding the structure will be conceptualised by October this year,
• RPCs are applied research facilities that help businesses scaleup prototypes faster, and take products to the market quickly. It is a valuable resource for process as well as product validation.Hence statement 1 is correct. 
•  These units essentially help create a commercial manufacturing structure, on a pilot scale, aiding businesses formalise standards and practices for sourcing, manufacturing and quality control.Hence statement 2 is correct.  
• Sources said that to enable the Indian industry to take lead in battery cell manufacturing, DST has been holding a series of consultations with stakeholders to set up RPCs.
•  In line with these, the third round of consultations were held in July 2024
• The Department of Science and Technology (DST) is already setting up shared and professionally managed science and technology infrastructure facilities that will be accessible to academia, start-ups, manufacturing units, industries and R&D Labs.
• It will be known as Sophisticated Analytical and Technical Help Institute (SATHI).

RP:

• Rapid prototyping (RP) is a group of techniques that use computer-aided design (CAD) to create physical models of objects. RP processes are additive, meaning they build models layer-by-layer using a precision-controlled plotting, scanning, or deposition mechanism. The goal of RP is to quickly create a physical model of a product or part to test its functionality and design. 

Source:

https://epaper.thehindubusinessline.com/ccidist-ws/bl/bl_bangalore/issues/95040/OPS/GK1D6MLEG.1+GN4D6P5BP.1.html

04. Consider the following statements with respect to Central bank digital currency (CBDC):

1. CBDC is a legal tender like cryptocurrency
2. CBDC can be transacted using wallets backed by blockchain.
3. Bahamas has been the first economy to launch its nationwide CBDC

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 only
3. 3 only
4. 2 and 3 only

Answer:  (d) 2 and 3 only

In News: During crisis, CBDC should be perceived as safe havens

Explanation:

• CBDCs are a digital form of a paper currency and unlike cryptocurrencies that operate in a regulatory vacuum, these are legal tenders issued and backed by a central bank. Hence statement 1 is incorrect
• It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency.
• A fiat currency is a national currency that is not pegged to the price of a commodity such as gold or silver.
• The digital fiat currency or CBDC can be transacted using wallets backed by blockchain. Hence statement 2 is correct
• Though the concept of CBDCs was directly inspired by Bitcoin, it is different from decentralised virtual currencies and crypto assets, which are not issued by the state and lack the ‘legal tender’ status.
• The main objective is to mitigate the risks and trim costs in handling physical currency, costs of phasing out soiled notes, transportation, insurance and logistics.
• It will also wean people away from cryptocurrencies as a means for money transfer.
• Bahamas has been the first economy to launch its nationwide CBDC — Sand Dollar. Nigeria is another country to have rolled out eNaira in 2020. China became the world’s first major economy to pilot a digital currency e-CNY in April 2020. Hence statement 3 is correct

Source: Business line 

05. With reference to Competition commission of India ,consider the following statements:

1. It is constituted under the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) .
2. It is India’s competition regulator, and an antitrust watchdog for smaller organizations. 
3. It is a quasi-judicial body

How many of the above statements are correct?

1. Only one
2. Only two
3. All three
4. None

Answer:  (b) Only two

In News: Competition Commission of India 

Explanation:

• Competition Commission of India (CCI) is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002, it was duly constituted in March 2009.
• The Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002, on the recommendations of the Raghavan committee.  Hence statement 1 is incorrect
• Competition Commission of India aims to establish a robust competitive environment.

• Through proactive engagement with all stakeholders, including consumers, industry, government and international jurisdictions.
• By being a knowledge intensive organization with high competence level.
• Through professionalism, transparency, resolve and wisdom in enforcement.

• The Commission consists of one Chairperson and six Members as per the Competition Act who shall be appointed by the Central Government.
• The commission is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases. The Chairperson and other Members shall be whole-time Members.Hence statement 3 is correct
• The Competition Commission is India’s competition regulator, and an antitrust watchdog for smaller organizations that are unable to defend themselves against large corporations.Hence statement 2 is correct
• CCI has the authority to notify organizations that sell to India if it feels they may be negatively influencing competition in India’s domestic market.

Source:  Business line

06.With respect to Joint Parliamentary Committee (JPC), Consider the following statements regarding

1. It is an ad hoc body comprising members from both Houses of Parliament 
2. The details of membership and subjects relating to a particular JPC are decided by the Parliament.
3. It is up to the government to take action on the recommendations of the committee.

How many of the above statements are correct?

1. Only one
2. Only two
3. All three
4. None

Answer: (b) Only three

In News: Amid Hindenburg probe calls, look at JPCs on financial allegations

Explanation:

• The Opposition has demanded a Joint Parliamentary Committee (JPC) to investigate the Hindenburg Research allegations against Sebi chairperson Madhabi Puri Buch. 
• The BJP has rejected the demand.

About Joint Parliamentary Committee (JPC)

• A JPC is an ad hoc body comprising members from both Houses of Parliament, roughly in proportion to party strengths in Lok Sabha and Rajya Sabha. Hence statement 1 is correct.
• The representation of Lok Sabha is double that of Rajya Sabha. 
• It acts as a mini Parliament to carry out detailed scrutiny of a specific matter within a specific time frame.
• Joint committees are set up by a motion passed in one House and agreed to by the other. 
• The details of membership and subjects relating to a particular JPC are decided by Parliament. Hence statement 2 is correct.
• A JPC can look into documents and examine officials of any ministry or institution concerned. 
• If one or more members disagree with the majority in a JPC, they can submit notes of dissent.
• There is no fixed number of members in the committee.
• It is dissolved after its term ends or its task has been completed.
• The recommendations made by the committee are in recommendatory in nature not binding on the government.Hence statement 3 is correct.
• But it must, in any case, report on the follow-up action taken on the committee’s recommendations.
• So far, only three JPCs have been constituted to investigate alleged financial crimes — on the 2G spectrum scam in 2013, on the Ketan Parekh share market scam in 2001, and on the securities and banking deals relating to Harshad Mehta in 1992.

Source:https://indianexpress.com/article/explained/explained-politics/hindenburg-report-jpc-probe-sebi-madhabi-puri-buch-9512569/

07.Consider the following statements regarding Denial-of-Service (DoS) attack?

1. It is a malicious attempt to disrupt the normal traffic of a targeted server, service, or network.
2. Slowing internet speed and inability to access an online service are signs of a DoS attack.

Which of the statements given above is/are correct?

1. 1 only 
2. 2 only
3. Both 1 and 2 
4. Neither 1 nor 2

Answer:  (c) Both 1 and 2 

In News: Trump-Musk interview on X reportedly hit by DDoS attack: What it means

Explanation:

• Billionaire entrepreneur Elon Musk hosted former US President and Republican Presidential candidate Donald Trump on his social media platform X on Monday (August 12) for a live audio interview. 
• Their conversation started after a 40-minute delay and witnessed several glitches, due to what appeared to be a “massive DDoS attack on X”.

About Denial-of-Service (DoS) attack

• A Denial-of-Service (DoS) attack simply means that a website or any other online service cannot be accessed because it has been the target of attacks from a malicious actor. Hence statement 1 is correct.
• DoS attacks typically function by overwhelming or flooding a targeted machine with requests until normal traffic is unable to be processed, resulting in denial-of-service to additional users.
• Bots can also be used to overwhelm the network, resulting in slow loading times or a total pause in internet services.

What are the signs of a DoS attack and how can it be dealt with?

• Slowing internet speed and inability to access an online service are signs of a DoS attack. Hence statement 2 is correct.
• However, firewalls and online security systems are the best sources for verifying this because internet issues can also be the result of other factors.
• Anti-virus software can help detect unusual traffic, alert users and thwart DDoS attacks.

How significant can DoS attacks be?

• DoS attacks can cause major disruption, lasting for anywhere between a few hours to a few days. 
• In 2016, major websites like Spotify, Twitter and Amazon were unavailable for many hours because of a DDoS attack.

A few common historic DoS attacks include:

• Smurf attack – a previously exploited DoS attack in which a malicious actor utilizes the broadcast address of vulnerable network by sending spoofed packets, resulting in the flooding of a targeted IP address.
• Ping flood – this simple denial-of-service attack is based on overwhelming a target with ICMP (ping) packets. By inundating a target with more pings than it is able to respond to efficiently, denial-of-service can occur. This attack can also be used as a DDoS attack.
• Ping of Death – often conflated with a ping flood attack, a ping of death attack involves sending a malformed packet to a targeted machine, resulting in deleterious behavior such as system crashes.

Source: https://indianexpress.com/article/explained/everyday-explainers/trump-musk-interview-ddos-attack-9511956/

08.The St Martin’s Island is located in the Bay of Bengal close to the border between 

1. Bangladesh and Myanmar
2. India and Myanmar
3. India and Sri Lanka
4. Bangladesh and India

Answer:  (a) Bangladesh and Myanmar

In News: What is Bangladesh’s St Martin’s Island, under spotlight after Sheikh Hasina’s resignation?

Explanation:

• Hasina said she could have continued to remain in power if she had given Bangladesh’s “St Martin’s Island and Bay of Bengal” to America.
• The statement seems to be taken from a 2023 speech by Hasina in which she claimed that “there will be no problem to hold on to power if Saint Martin’s Island is leased out, but she won’t do that,” according to a report by Prothom Alo.

About St Martin’s Island

• The island is located in the northeastern region of the Bay of Bengal, close to the border between Bangladesh and Myanmar. Hence option (a) is correct
• It is nine kilometres away from the southern tip of Bangladesh’s Cox’s Bazar-Teknaf peninsula.
• The 7.3 km long island is mostly flat and sits at an elevation of 3.6 metres above the mean sea level. 
• It is Bangladesh’s only coral island — there are reefs from 10-15 km to the west-northwest — and is also a breeding ground for sea turtles.
• After the partition of British India in 1947, it became part of Pakistan and subsequently, a part of independent Bangladesh after the 1971 Liberation War.

Source:

https://indianexpress.com/article/explained/explained-economics/broiler-chicken-chhattisgarh-broiler-meat-poultry-farms-9512568/

09.With respect to Collision Avoidance System (CAS), consider the following statements: 

1. It can be used in both human-driven and autonomous vehicles.
2. It uses real-time data about the positions of other objects and the vehicle itself to navigate safely.
3. CAS can withstand the hindrance by extreme weather conditions.

How many of the above statements are correct?

1. Only one
2. Only two
3. All three
4. None

Answer: (b) Only two

In News: The technologies that keep vehicles from bumping into each other 

Explanation:

• Vehicular traffic is a mainstay of modern life. Either people want to get from one place to the next or they want to send things. 
• As the demand for such transport has increased, so have the number of transport options people have invented and the number of places to deploy them in.

About collision avoidance system

• A Collision Avoidance System (CAS) is a set of technologies designed to help vehicles avoid collisions with other vehicles or obstacles. 
• It uses real-time data about the positions of other objects and the vehicle itself to navigate safely. Hence statement 1 is correct.
• CAS in cars can automatically apply emergency brakes if it detects that the distance between vehicles is dangerously close, reducing the risk of rear-end collisions.
• It can be used in both human-driven and autonomous vehicles.Hence statement 1 is correct.
• The system is connected to the vehicle’s braking system and uses sensors like radar, lidar, and cameras to monitor the surroundings and detect potential collisions.
• Trains System: Kavach. The KAVACH is an indigenously developed Automatic Train Protection (ATP) system by the Research Design and Standards Organisation (RDSO) in collaboration with the Indian industry.
•  Aviation CAS: It includes Traffic Collision Avoidance System (TCAS) and Ground Proximity Warning System (GPWS).
• Marine CAS: It includes automatic Radar Plotting Aid (ARPA) which helps in detecting and tracking other vessels to avoid collisions at sea.
• The effectiveness of CAS can be hindered by poor weather conditions, sensor malfunction, or false positives. Hence statement 3 is incorrect.
• There is a risk that drivers or pilots may become too dependent on the system and not remain vigilant.

Source: https://www.thehindu.com/sci-tech/science/collision-avoidance-systems-explained/article68513033.ece

10.With reference to ancient India, Gautama Buddha was generally known by which of the following epithets?(2024)

1. Nayaputta
2. Shakyamuni
3. Tathagata

Select the correct answer using the code given below:

1. 1 only                            
2. 2 and 3 only
3. 1, 2 and 3                       
4. None of the above are epithets of Gautama Buddha

Ans: (b)2 and 3 only

Explanation:

• The ancient texts refer to Mahavira as Nayaputta (son of Nayas). This referred to his clan of origin, which is translated in sanskrit as jnatra. 
• Buddha (born c. 6th–4th century BCE, Lumbini, near Kapilavastu, Shakya republic, Kosala kingdom [now in Nepal]—died, Kusinara, Malla republic, Magadha kingdom [now Kasia, India]) was the founder of Buddhism, one of the major religions and philosophical systems of southern and eastern Asia and of the world.
• The clan name of the historical figure referred to as the Buddha (whose life is known largely through legend) was Gautama (in Sanskrit) or Gotama (in Pali), and his given name was Siddhartha (Sanskrit: “he who achieves his aim”) or Siddhattha (in Pali). He is frequently called Shakyamuni, “the sage of the Shakya clan.” 
• In Buddhist texts, he is most commonly addressed as Bhagavat (often translated as “Lord”), and as the Tathagata, which can mean either “one who has thus come” or “one who has thus gone.Hence, option B is correct.