CURRENT AFFAIRS – 13/09/24

1. Headline and Core inflation

Q. With reference to the Indian economy, consider the following statements:

1. Headline inflation is a measure of the total inflation in an economy. 
2. Core inflation is a measure of inflation that excludes volatile items like food and energy.
3. In India, The Central Statistical Office (CSO) of the Ministry of Statistics and Programme Implementation (MoSPI) releases the Consumer Price Index (CPI).

Which of the above statements are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (d) 1, 2 and 3

Explanation: 

In NEWS: Retail inflation stays under 4%, but vegetable prices up again 

• India’s retail inflation stayed under the Reserve Bank of India’s median target of 4% for the second successive month in August, even as it inched up marginally to 3.65% from an upwardly revised 3.6% in July. August’s inflation pace is the second-slowest in five years.
• Tomatoes reported the sharpest drop in prices, which declined 47.9% year-on-year, and 28.8% on a month-on-month basis. The National Statistical Office said that India’s food inflation for August was the second lowest since June 2023.

Headline and Core inflation: 

• Headline inflation is a measure of the total inflation in an economy, while core inflation is a measure of inflation that excludes volatile items like food and energy. Hence statements 1 and 2 are correct.
•  The headline inflation figure includes inflation in a basket of goods that includes commodities like food and energy. 
• It is different from core inflation, which excludes food and energy prices while calculating inflation. Food and energy are not included in core inflation because their prices are volatile. It makes headline inflation a more volatile measure than core inflation.
• The Central Statistical Office (CSO) of the Ministry of Statistics and Programme Implementation (MoSPI) releases the Consumer Price Index (CPI) in India. The CPI is released on the 12th of every month for all-India, states, and union territories. It’s released separately for rural, urban, and combined areas. Hence statement 3 is correct.

Source: https://www.thehindu.com/business/Economy/retail-inflation-rises-marginally-to-365-in-august/article68634301.ece 

2. Stagflation

Q. Which of the following best describes the term ‘Stagflation’, sometimes seen in the news?

1. a business practice where companies reduce the size or quantity of a product while keeping the price the same or slightly increasing it.
2. a rare economic period that’s characterised by high inflation, slow economic growth, and high unemployment.
3. a sustained price increase in a small group of commodities or a single commodity over a period of time.
4. corporate greed is driving inflation, rather than the traditional wage-price spiral, leading to a profit-price spiral.

Answer: (b) a rare economic period that’s characterised by high inflation, slow economic growth, and high unemployment.

Explanation: 

In NEWS: Russia facing stagflation threat as war effort slows growth 

• Stagflation — a period of low or stagnant growth accompanied by high inflation — would present a fresh headache for the Kremlin, which has until now navigated the economic fallout from the conflict in Ukraine better than most believed possible.
• Unemployment is at a record low and consumer confidence is its highest in 15 years. But an exodus of skilled and unskilled workers — who fled mobilisation or joined the army — has created millions of unfilled vacancies. Sanctions on Western technology have also hit productivity and damaged supply chains.

Stagflation: 

• Stagflation is a rare economic period that’s characterised by high inflation, slow economic growth, and high unemployment. Hence option (b) is correct. 

Shrinkflation:

• Shrinkflation is a business practice where companies reduce the size or quantity of a product while keeping the price the same or slightly increasing it.

Skewflation:

• Skewflation is a term that describes a sustained price increase in a small group of commodities or a single commodity over a period of time. Skewflation is a type of biflation (simultaneous occurrence of inflation and deflation) , where the cost of living increases while asset prices and home prices fall.

Greedflation:

• Greedflation, in essence, signifies that corporate greed is driving inflation, rather than the traditional wage-price spiral, leading to a profit-price spiral.

Source: The Hindu

3. Cess and Surcharge

Q. Consider the following statements:

Statement-I: A surcharge is levied on the payable tax, not the overall income.

Statement-II: Surcharge is levied for a specific purpose, like education, health, or infrastructure. 

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

(a) Both Statement-I and Statement-II are correct and Statement-II is the

correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not

the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

Answer: (c) Statement-I is correct but Statement-II is incorrect.

Explanation: 

In NEWS: Five States seek fair share of tax, cap on cess 

About Cesses and surcharges:

• Cesses and surcharges are both additional levies on top of a basic tax liability, but they have different purposes and how the funds are used.
• The Cess is a fixed tax, whereas the Surcharge is a variable tax. 

Cess

• A cess is usually levied for a specific purpose, like education, health, or infrastructure. The funds collected from a cess are restricted to being spent on that purpose. All taxpayers in the country are required to pay a cess. 

Surcharge

• A surcharge is levied on the payable tax, not the overall income. Hence statement 1 is correct.
• The revenue from a surcharge goes into the government’s general pool of funds, and the government can use the funds as it deems fit. 
• Surcharges are levied on citizens who earn more than a certain amount, such as 50 lakhs per year. Hence statement 2 is incorrect.
• Both cess and surcharge are part of the Consolidated Fund of India.

Source: https://www.thehindu.com/news/national/kerala/16th-finance-commission-conclave-of-finance-ministers-calls-for-fair-division-of-resources-cap-on-cesses-and-surcharges-levied-by-centre/article68634402.ece 

4. Polaris Dawn mission

Q. Consider the following statements: The Polaris Dawn mission

1. is the first civilian mission to orbit Earth.
2. is set to be the first non-governmental mission to conduct a spacewalk.
3. is a privately funded space mission led by Jared Isaacman, in collaboration with SpaceX.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (d) 1, 2 and 3

Explanation: 

In NEWS: Jared Isaacman looks out of a hatch, ‘Skywalker’, during the first private spacewalk performed by the crew of the SpaceX Polaris Dawn mission. A private crew is making history, with the first spacewalk by non-professional astronauts. 

About Polaris Dawn mission:

• Polaris Dawn is set to be the first non-governmental mission to conduct a spacewalk, reaching an unprecedented altitude of approximately 700 kilometres (435 miles) above Earth. Hence statement 2 is correct.
• This altitude surpasses that of the International Space Station (ISS), which orbits at about 400 kilometres. It is a privately funded space mission led by billionaire entrepreneur Jared Isaacman, in collaboration with SpaceX. Hence statement 3 is correct.
• Spacecraft: SpaceX will provide theFalcon 9 rocket and Dragon capsule for the mission. The spacecraft will attempt to break the altitude record set by NASA’s Gemini 11 mission in 1966, which reached 1,373 kilometres.
• Crew and leadership: The mission is spearheaded by billionaire entrepreneur Jared Isaacman, who previously financed and flew on SpaceX’s Inspiration4 mission, the first civilian mission to orbit Earth. Hence statement 1 is correct.

Source: The Hindu – Picture column

https://indianexpress.com/article/explained/explained-sci-tech/everything-about-polaris-dawn-mission-which-will-attempt-first-private-spacewalk-9561109/

5. Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY)

Q. With reference to the ‘Pradhan Mantri Jan Arogya Yojana (AB PM-JAY)’, consider the following statements:

1. PM-JAY is the largest health assurance scheme in the world which aims at providing health cover.
2. It is fully funded by the Government and cost of implementation is shared between the Central and State Governments.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Explanation: 

In NEWS: Free health coverage to all over 70 years is good, but more needs to be done 

Ayushman Bharat: 

• Ayushman Bharat, a flagship scheme of Government of India, was launched as recommended by the National Health Policy 2017, to achieve the vision of Universal Health Coverage (UHC). This initiative has been designed to meet Sustainable Development Goals (SDGs) and its underlining commitment, which is to “leave no one behind.”
• It adopts a continuum of care approach, comprising of two inter-related components, which are –
  • Health and Wellness Centres (HWCs)
  • Pradhan Mantri Jan Arogya Yojana (PM-JAY)

Pradhan Mantri Jan Arogya Yojana (PM-JAY): 

• Ayushman Bharat PM-JAY is the largest health assurance scheme in the world which aims at providing a health cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization to over 12 crores poor and vulnerable families (approximately 55 crore beneficiaries) that form the bottom 40% of the Indian population. Hence statement 1 is correct.
• The households included are based on the deprivation and occupational criteria of Socio-Economic Caste Census 2011 (SECC 2011) for rural and urban areas respectively. 
• PM-JAY was earlier known as the National Health Protection Scheme (NHPS) before being rechristened. 
• It subsumed the then existing Rashtriya Swasthya Bima Yojana (RSBY) which had been launched in 2008. 
• The coverage mentioned under PM-JAY, therefore, also includes families that were covered in RSBY but are not present in the SECC 2011 database. 
• PM-JAY is fully funded by the Government and cost of implementation is shared between the Central and State Governments. Hence statement 2 is correct.

Key Features of PM-JAY: 

• PM-JAY is the world’s largest health insurance/ assurance scheme fully financed by the government.
• It provides a cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization across public and private empanelled hospitals in India.
• Over 12 crore poor and vulnerable entitled families (approximately 55 crore beneficiaries) are eligible for these benefits.
• PM-JAY provides cashless access to health care services for the beneficiary at the point of service, that is, the hospital.
• PM-JAY envisions to help mitigate catastrophic expenditure on medical treatment which pushes nearly 6 crore Indians into poverty each year.
• It covers up to 3 days of pre-hospitalization and 15 days post-hospitalization expenses such as diagnostics and medicines.
• There is no restriction on the family size, age or gender.
• All pre–existing conditions are covered from day one.
• Benefits of the scheme are portable across the country i.e. a beneficiary can visit any empanelled public or private hospital in India to avail cashless treatment.
• Services include approximately 1,929 procedures covering all the costs related to treatment, including but not limited to drugs, supplies, diagnostic services, physician’s fees, room charges, surgeon charges, OT and ICU charges etc.
• Public hospitals are reimbursed for the healthcare services at par with the private hospitals.

Source: https://www.thehindu.com/opinion/editorial/%E2%80%8Bessential-but-not-enough-on-the-extended-coverage-of-the-ayushman-bharat-pradhan-mantri-jan-arogya-yojana/article68634754.ece  

https://nha.gov.in/PM-JAY

6. The Paranaiba, Grande and Tocantins basins

Q. In recent years Paranaiba, Grande and Tocantins caught international attention for which of the following reasons?

(a) Discovery of rich deposits of rare earth elements

(b) Establishment of Chinese military bases

(c) Severe destruction by the cyclone

(d) Risk of drying river basins

Answer: (d) Risk of drying river basins

Explanation: 

In NEWS: Brazil’s hydropower faces risk from drying river basins, spur inflation 

• Soil moisture in Brazil’s main river basins used for hydropower generation has fallen to nearly two-decade lows, data collected by the London Stock Exchange Group shows, threatening a prolonged impact from a serious drought even after rains return.
• Tropical rains feeding Brazil’s vast network of rivers typically allow hydropower plants to generate around two thirds of Brazil’s electricity but years of weak rainfall have hurt the sector, pushing up energy costs and stoking inflation that has led economists to forecast a fresh round of interest rate hikes.
• Analysts warn that even if seasonal rains arrive next month as expected, hydroelectric reservoirs may be slow to fill because so much moisture will be absorbed by the soil.
• The Paranaiba, Grande and Tocantins hydroelectric basins, stretching across southeast, center-west and north Brazil, make up a large part of the sector’s capacity. LSEG data shows they hit the lowest level of soil moisture for September since 2005.
• The worst effects of the current drought have hit run-of-the-river generators, including the partial shutdown of the Santo Antonio plant in northern Brazil, one of the largest in the country, which relies on the Madeira River.

Source: The Hindu

https://www.reuters.com/business/energy/brazils-hydropower-faces-risk-drying-river-basins-2024-09-11/#:~:text=Tropical%20rains%20feeding%20Brazil’s%20vast,round%20of%20interest%20rate%20hikes.

7. INDUS-X Summit

Q. Consider the following statements: The INDUS-X Summit

1. held in 2024 was the third such Summit

2. was a joint defence innovation ecosystem in India and the USA.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Explanation: 

In NEWS: Third edition of INDUS-X Summit concludes in California 

• The third edition of the INDUS-X Summit concluded in the United States, marking  a progress in the advancement of a joint defence innovation ecosystem in India and the USA. Hence statements 1 and 2 are correct.
• The Summit was a landmark event jointly organised by the U.S.-India Strategic Partnership Forum (USISPF) and Stanford University.
• During the summit, a Memorandum of Understanding (MoU) was signed between iDEX and the Defence Innovation Unit (DIU) under the US Department of Defence, to increase co-operation in defence innovation and deepen collaboration to facilitate industry, research, and investment partnerships among the stakeholders. 
• Other key highlights of the Summit included announcement of a new challenge under INDUS-X, release of the INDUS-X Impact Report and launch of the official INDUS-X webpage on the iDEX and DIU websites.
• The Summit offers a platform for joint showcase of next generation technologies by startups/MSMEs. 

The INDUS-X initiative is being steered by Innovations for Defence Excellence (iDEX) on behalf of the Ministry of Defence and Defence Innovation Unit (DIU) under the U.S. Department of Defense (DoD). 

Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2054372 

8. Gram Nyayalayas

Q. With reference to the ‘Gram Nyayalaya Act’, which of the following statements is/are correct?

1. As per the Act, Gram Nyayalayas can hear only civil cases and not criminal cases.

2. The Act allows local social activists as mediators/reconciliators.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Explanation: 

In NEWS: Establishment of Gram Nyayalayas will improve access to justice: SC 

1. Gram Nyayalaya:

• The Law Commission of India, in its 114 th Report, had suggested establishment of Gram Nyayalayas for providing affordable and quick access to justice to the citizens at their doorsteps. 
• The Gram Nyayalayas Bill was passed by the Parliament on 22nd December 2008 and the Gram Nyayalayas Act came into force with effect from 02nd October, 2009. 
• The Act extends to the whole of India, except to the States of Nagaland, Arunachal Pradesh, Sikkim and to the tribal areas specified in Parts I, II, IIA and III of the Table below paragraph 20 of the Sixth Schedule to the Constitution of India within the States of Assam, Meghalaya, Tripura and Mizoram, respectively.

2. Some of the salient features of the Gram Nyayalayas Act are as follows:

• Gram Nyayalayas are aimed at providing inexpensive justice to people in rural areas at their doorsteps;
• Gram Nyayalayas are to be established for every Panchayat at intermediate level or a group of contiguous Panchayats at intermediate level or for a group of contiguous Gram Panchayats;
• The seat of the Gram Nyayalayas shall be located at the headquarters of the intermediate Panchayat. The Nyayadhikari shall periodically visit villages and may hear the parties and dispose of the cases at the place other than its headquarters;
• The Gram Nyayalayas will try criminal cases, civil suits, claims or disputes which are specified in the First Schedule and the Second Schedule to the Act. Hence statement 1 is incorrect.
• They are to follow summary procedure in criminal trial;
  • Disputes are to be settled as far as possible by bringing about conciliation between the parties and for this purpose, the Gram Nyayalayas will make use of the conciliators to be appointed for this purpose;
• The Gram Nyayalaya shall not be bound by the rules of evidence provided in the Indian Evidence Act, 1872 but shall be guided by the principles of natural justice subject to any rule made by the High Court.

3. At the time of drafting the proposal for Gram Nyayalayas, it was envisaged that Gram Nyayalayas would be set up in the country at the intermediate panchayat level. A scheme of central assistance was formulated simultaneously to fund the initial cost in terms of non-recurring expenses for setting up of these courts with the assistance limited to Rs. 18.00 lakhs per Gram Nyayalaya as a one-time measure. Central Government also decided to bear 50% of the recurring expenses of these courts subject to a ceiling of Rs. 3.2 lakhs per court per annum during the first three (3) years of their operations.

4. The scheme has since been extended by the Government for five years from 01.04.2021 to 31.03.2026 at a budgetary outlay of Rs.50 crores allocated for the Gram Nyayalayas Scheme. Henceforth, the funds for the Gram Nyayalayas will be released only after they have been notified as well as made operational alongwith the appointment of Nyayadhikaris and reported on the Gram Nyayalayas Portal of the Department of Justice. A review of the performance of Gram Nyayalayas will be done after one year to assess its efficacy as an institution in providing speedy and affordable justice to the rural marginalised. The Act also allows local social activists as mediators/reconciliators. Hence statement 2 is correct.

Source: https://www.business-standard.com/india-news/establishment-of-gram-nyayalayas-will-improve-access-to-justice-sc-124091100889_1.html 

https://dashboard.doj.gov.in/gn/introduction

9. Lantana camara

Q. Why is a plant called Lantana camara often mentioned in news?

(a) Its extract is widely used in cosmetics.

(b) It tends to reduce the biodiversity in the area in which it grows.

(c) Its extract is used in the synthesis of pesticides.

(d) None of these

Answer: (b) It tends to reduce the biodiversity in the area in which it grows.

Explanation: 

In NEWS: A herd from Nilgiris takes over New York, throws spotlight on a jumbo problem

• In Madhya Pradesh’s Satna district, the spread of the lantana (Lantana camara) , an invasive plant, is causing a shortage of traditional foods for Adivasis and forcing them to migrate for employment. Hence option (b) is correct.
• The new generation is losing the traditional knowledge of forest produce as lantana restricts the growth of many indigenous species and herbs. 
• It absorbs water and nutrients faster than other forest species, adversely affecting soil fertility and the health of grazing animals due to the toxic compound found in its leaves.
• The forest department makes efforts to clear out lantana twice a year. In 2021, the department started sending shredded lantana chips to a cement plant in Satna district so it could be used as a combustible fuel substituting coal.
• The village forest committee (VFC), in which all residents of that particular village are members, was assigned the task of uprooting lantana bushes from the forest area. VFC members who participated in the effort received INR 1,200 per metric tonne of shredded lantana chips. In the first three months, 29.87 metric tonnes of lantana were extracted, which led to INR 35,844 in wages for the people of the village. This project is now being extended to other districts that suffer from lantana invasion.

Source: https://indianexpress.com/article/india/herd-nilgiris-new-york-spotlight-jumbo-problem-9564626/ 

10. Which one of the following was the latest inclusion in the Intangible Cultural Heritage List of UNESCO?

(a) Chhau dance

(b) Durga puja

(c) Garba dance

(d) Kumbh mela

Answer: (c) Garba dance