DAILY CURRENT AFFAIRS ANALYSIS
| . No. | Topic Name | Prelims/Mains |
| 1. | El Nino | Prelims & Mains |
| 2. | RBI Report on Currency and Finance | Prelims & Mains |
| 3. | Blue Economy | Prelims & Mains |
| 4. | Rang Ghar | Prelims & Mains |
1 – El Nino: GS I – Geography-related issues:
Context:
- El Nio, which is frequently accompanied by extreme heat, drought, or rainfall in many parts of the world, is predicted by the World Meteorological Organisation (WMO), who warns that everyone should prepare.
Background:
- After a three-year La Nia, the tropical Pacific is presently in an ENSO-neutral state (i.e., neither El Nio nor La Nia).
- There is a 60% chance that El Nio will replace neutral in the ENSO between May and July 2023.
- 2016 was the warmest year on record as a result of the interaction of a particularly strong El Nio event with global warming.
Typically, El Nino has the following impacts:
- a rise in precipitation in some areas of central Asia, the Horn of Africa, southern South America, and the southern US.
- severe droughts in Australia, Indonesia, and parts of southern Asia.
- Warm water during the northern hemisphere’s summer in the central/eastern Pacific Ocean can fuel hurricanes, but it can also stop them from forming in the Atlantic Basin.
Potential risks resulting from an El Nino event:
- If global warming keeps increasing, it will be more likely that temperature records will be broken (in 2024).
- There is a 50% chance that the global temperature may briefly increase by 1.5°C.
Impact, most likely on India:
- The northeast monsoon, which affects the peninsular region from October to December, is frequently favoured by El Nino, but not the southwest monsoon, which causes dry weather from June to September.
- The monsoon season, which is responsible for over 70% of the nation’s annual rainfall, affects nearly 60% of India’s net cultivated area.
- The monsoon is a major driver of agricultural output, rural spending, inflation, employment, and industrial demand.
- Good agricultural production has a positive impact on rural incomes, lowers food inflation, and increases demand.
Upcoming difficulties for India:
- IMD forecast a “normal” monsoon at 96% (+/-%) of the long-period average (LPA; 87 cm for the period from 1971 to 2020).
- If summer starts out particularly chilly, the start of the monsoon season may be postponed.
Immediately – EW4All:
- The Early Warnings for All Initiative (EW4All) was publicly launched by the UN Secretary-General at the COP27 meeting in Sharm El-Sheikh in November 2022.
- The Initiative aims to establish a global early warning network by the end of 2027.
Source The Hindu
2 – RBI Report on Currency and Finance: GS III – Indian Economy:
Context:
- The Reserve Bank of India (RBI) published a report on money and finances for the fiscal year (FY) 2022–2023. The goal of the report is to make India greener and cleaner.
The primary ideas of the Report are:
CBDC and the environment:
- CBDC might be more ecologically friendly than other cashless methods. Payments received through CBDC would be instantaneous and definitive because there would be less reliance on clearing houses and other settlement infrastructure. This could reduce energy use.
Climate stress testing:
- Public sector banks (PSBs) in India may be more vulnerable than private sector banks (PVBs) according to climate stress tests, which gauge the potential loss to the financial system from risks connected with climate change.
India needs money for the following things:
- To address the infrastructure gap brought on by climate change, an additional 2.5% of GDP would have to be invested annually by 2030.
Climate change’s implications on the Indian economy:
- By 2100, India could lose anywhere from 3 to 10% of its annual GDP due to climate change.
- 34 million jobs would be lost due to heat stress-related productivity losses by 2030.
RBI and Climate Change:
- RBI joined the Network for Greening the Financial System (NGFS) to strengthen the global effort to meet the objectives of the Paris Agreement. For the purpose of funding investments in environmentally friendly infrastructure, it created a framework for regulated organisations to mobilise green deposits and issued sovereign green bonds (SGBs).
Alternative Policy Measures to Reduce Climate Risks:
- Carbon pricing, the Emission Trading System, and the adoption of a green taxonomy to identify sustainable green assets and businesses are examples of initiatives for fiscal policy. Government investments in targeted R&D, controlling the variability in the supply of wind and solar energy, setting up a local renewables supply chain, etc. are examples of technology adoption.
- Monetary Policy: Increasing the usage of Central Bank Digital Currency (CBDCs), lowering the margin requirements for SGBs when used as collateral, etc.
Incorporated news:
- The RBI earlier released a report on currency and finance titled “Revive and Reconstruct” with the intention of promoting a long-lasting recovery following the COVID-19.
The report’s primary points include the following:
- The Covid-19 outbreak, one of the worst public health catastrophes in history, has significantly reduced India’s output, loss of life, and loss of way of life.
- The conflict between Russia and Ukraine has slowed the healing process down as well.
- India is anticipated to recover from Covid-19 losses by 2034–2035, assuming growth rates of 7.2% for 2022–2023 and 7.5% after that.
Modified suggestions:
- Over the medium run, achieve GDP growth of 6.5-8.5% annually. The RBI has suggested seven wheels for advancing the economy.
- Price stability is attained via rebalancing monetary and fiscal policies.
Promote IR 4.0:
- A fresh transition with no emissions.
Reducing the monetary debt:
- putting in place fundamental adjustments including boosting labour standards, stimulating innovation and technology, rationalising subsidies, and increasing access to inexpensive land.
Source The Hindu
3 – Blue Economy: GS III – Indian Economy:
Context:
- The Comptroller and Auditor General of India (CAG) will chair over the SAI20 Engagement Group for Supreme Audit Institutions (SAls) of G20 nations in Goa.
About SAI20:
- The SAI20 Engagement Group was established in 2022, under Indonesia’s G20 Presidency.
- SAIs were founded in SAI20 to aid in the accomplishment of the SDGs and to advance the efficiency, responsibility, and openness of public administration.
- promoting intergenerational justice and tackling climate change worries.
What is meant by the term “blue economy” and why is it important:
- The blue/ocean economy is valued roughly $2.5 trillion each year.
- 90% of the volume and 75% of the value of the globe are transported by water.
Advancing the blue economy:
(2017) Guidelines for Sustainable Blue Economy Financing:
- The UNEP-developed methodology can be used by financiers to analyse the potential effects of marine investment on livelihood and the eradication of poverty as well as by investors to finance ocean-based businesses.
- The blue economy is one of India’s 10 essential areas for economic growth.
CBD (15th COP) :
- It provided an overview of the global biodiversity framework for safeguarding and sustainably utilising the world’s diversity.The National Blue Economy Policy, created by the Ministry of Earth Sciences, aims to use maritime resources while preserving the country’s distinctive marine biodiversity.
- Natural resource asset accounts compendium This first-ever national accounting framework for the blue economy is established in this manual (by CAG).
- CAG study on protecting coastal ecosystems: The audit generated specific recommendations for improving the Coastal Regulation Zone’s (CRZ) ecology.
Challenges:
- Due to competing definitions and problems with categorising various sectors and sub-sectors, measuring the blue economy is difficult.
- Sea level rise, sea temperature, storm surges, cyclones, and wave conditions are a few indicators of climate change.
- The coastal environment is impacted by sand mining, land use changes, and deforestation.
In relation to India:
- Between 1992 and 2018, 15% of India’s coastal regions underwent changes as a result of urbanisation, deforestation, and agriculture.
- By 2060, there will be 216 million people residing in the nation’s coastal regions, up from 64 million in 2000.
- The SAI20 will focus on two issues: the blue economy and ethical artificial intelligence (AI).
What can we anticipate from discussions about the blue economy?
- creation of technologically advanced technologies to monitor marine water quality and evaluate permitted development in coastal areas.
Coastal space audit toolkits have evolved and now include the following:
- institutional and legal structures.
- enforcement of coastal regulations.
- conservation of the biosphere.
- building capacity and adhering to the SDGs.
Way Forward:
- Infrastructure near the coast that is disaster-resistant.
- Early warning system ICT hubs.
- The SAI20 audit toolkits, which are being developed under the direction of the CAG of India, will offer a special chance for productive discussion to enhance the auditing of ocean-based operations.
Conclusion:
- In order to create a truly sustainable blue economy-based global development model, the audit toolkits will aid in the evaluation of policy objectives and resource efficiency.
Source The Hindu
4 – Rang Ghar: GS I – Indian Culture:
Context:
- After a laser display that projected “religious symbols” as part of the commemoration of the PM’s 100th Man Ki Baat episode, the Rang Ghar amphitheatre in Assam’s Sivasagar district has come under fire.
About Rang Ghar:
- Built in the middle of the 18th century under Swargadeo Pramatta Singha’s rule, Rang Ghar is a historic two-story amphitheatre that was used by the Ahom dynasty as a royal pavilion and amphitheatre. It is renowned for its distinctive octagonal shape, architectural characteristics, including an inverted boat-shaped roof crowned with stone crocodiles, and is said to be Asia’s first amphitheatre.
Source The Hindu