Syllabus:

• Prelims – CURRENT EVENT

Context: Ahead of Prime Minister Narendra Modi’s two-day visit to Mauritius this week, India affirmed its support for the island country’s claim over the Chagos archipelago.

Background: –

• Chagos has long been the subject of a dispute between Mauritius and the UK, which held on to these islands for decades after granting independence to Mauritius in 1968.

Key takeaways

• The Chagos archipelago comprises more than 60 low-lying islands in the Indian Ocean roughly 1,600 km to the northeast of the main island of Mauritius. Diego Garcia is the largest island of the Chagos Archipelago.
• Chagos was uninhabited for most of its history. The Portuguese used the Chagos islands as a stopover in voyages around the Cape of Good Hope to India. But it was only in the 18th century that the first permanent settlements emerged.
• France became the first power to officially plant its flag on Chagos. The French had earlier set up Indian Ocean colonies in Île Bourbon (now Réunion) in 1665, Isle de France (now Mauritius) in 1715, and the Seychelles in 1744.
• By 1786, a number of fishing settlements and coconut plantations was established. The labour for these enterprises was supplied by slaves from Mauritius, the Seychelles, Madagascar, and East Africa.
• In 1814, after the fall of the Napoleonic Empire, France formally ceded Mauritius, including Chagos, and the Seychelles to Britain. After Britain abolished slavery in its colonies in 1833, indentured labour from India and Malaya was brought to the plantations.
• The Chagossian population today traces its origins to freed African slaves, and the Indian and Malayan labourers who arrived in the 18th and 19th centuries. Under international law, they are the indigenous people of the Chagos archipelago.

British Indian Ocean Territory (BIOT) & Diego Garcia base

• Mauritius became independent on March 12, 1968. But Britain kept control of Chagos. 
• In 1965, the UK had created a new administrative entity — the British Indian Ocean Territory (BIOT) — which included the Chagos islands from Mauritius, and the islands of Aldabra, Farquhar, and Desroches from the Seychelles (these were restored to the Seychelles when the country received its independence in 1976).
• In 1966, the UK and the US signed a secret agreement to establish a military base in Diego Garcia. In 1971, when the US began to construct the Diego Garcia base, islanders were forcibly deported to Mauritius and the Seychelles. The roughly 2,000-strong native population was expelled.

The 2024 agreement

• In 2017, the UN General Assembly voted to ask the International Court of Justice to examine the legal status of the archipelago. The ICJ concluded that the UK is under an obligation to bring to an end its administration of the Chagos Archipelago.
• A deal was struck between the UK and Mauritius in 2024. Britain recognised Mauritius’ claim over all of Chagos, including Diego Garcia — however, the deal said that the UK would, for a 99-year initial period, exercise “the sovereign rights [over Diego Garcia] and authorities of Mauritius are required to ensure the continued operation of the base well into the next century”.

Source: Indian Express

Syllabus:

• Prelims & Mains – ENVIRONMENT

Context: More than 10 years after assuming office, Prime Minister Narendra Modi chaired his first-ever meeting of the National Board for Wildlife (NBWL) last week.

Background: –

• The last full-body NBWL meeting was held on September 5, 2012, chaired by then PM Manmohan Singh. The PM is the ex officio chairman of the NBWL.

Key takeaways

• The present-day National Board for Wildlife was created in 2003 after amending The Wild Life (Protection) Act, 1972.
• The NBWL is the country’s apex body on matters of framing wildlife policy, conservation of wildlife and forests, and on giving recommendations to set up new national parks and sanctuaries.
• The NBWL consists of 47 members with the Prime Minister as its chairperson and the Union environment minister its vice-chairperson.
• The NBWL has a standing committee, to which are delegated key tasks such as appraising projects situated on forest lands inside and around national parks and sanctuaries as well as projects within 10-km of protected areas. 
• The standing committee’s decisions are recommendatory, which the environment ministry can overrule.

Why has the board recently faced criticism?

• Over the past decade, the NBWL has cleared several controversial projects in and around wildlife habitats. These include the Ken Betwa river linking project’s Daudhan Dam, which will submerge nearly 100 sqkm of Panna Tiger Reserve, and an oil exploration project of Vedanta in the eco-sensitive zone of the Hollongapar Gibbon sanctuary, home to the endangered Hoolock Gibbon, India’s only ape species. Also, in 2021, the Galathea Bay Sanctuary in Andaman and Nicobar Islands, a nesting site of leatherback sea turtles, was denotified.
• After the BJP came to power in 2014, the NBWL was reconstituted. The move faced allegations of dilution of powers, as only three non-governmental members were appointed.
• The last standing committee of the UPA era had seven members not linked to the government — four conservation experts, and three representing non-governmental organisations.

Source: Indian Express

Syllabus:

• Prelims & Mains – ECONOMY

Context: US stocks have plunged, the constant talk of tariffs has caused uncertainty, and a survey has shown that mood among American consumers is pessimistic, even as an economic adviser to President Donald Trump has dismissed talks of a recession in the US economy.

Background:

• At its simplest, in any economy, a recessionary phase is the counterpart of an expansionary phase.

Key takeaways

• When the overall output of goods and services — typically measured by the GDP — increases from one quarter (or month) to another, the economy is said to be in an expansionary phase. And when the GDP contracts from one quarter to another, the economy is said to be in a recessionary phase.
• Together, these two phases create what is called a “business cycle” in any economy. A full business cycle could last anywhere between one year and a decade.
• When a recessionary phase sustains for long enough, it is called a recession. In other words, when the GDP contracts for a long enough period, the economy is said to be in a recession.
• There is no universally accepted definition of a recession — as in, for how long should the GDP contract before an economy is said to be in a recession. But most economists agree with the definition that the National Bureau of Economic Research (NBER) in the United States uses.
• According to NBER, “During a recession, a significant decline in economic activity spreads across the economy and can last from a few months to more than a year”.
• The NBER typically looks at various variables — employment, consumption etc — apart from GDP growth to arrive at a decision. It also looks at the “depth, diffusion, and duration” of decline in economic activity to determine whether an economy is in a recession or not.
• Economic commentators also use the word technical recession. A technical recession occurs when a country’s Gross Domestic Product (GDP) contracts for two consecutive quarters (i.e., two successive three-month periods)

Source: Indian Express

Syllabus:

• Prelims & Mains – CURRENT EVENT

Context: Prime Minister Narendra Modi’s presented the Overseas Citizen of India (OCI) card to his Mauritius counterpart Navinchandra Ramgoolam and termed it a “proof of friendship” between two nations.

Background: –

• The Overseas Citizen of India (OCI) scheme was introduced in 2005 through an amendment to the Citizenship Act, 1955, to allow certain categories of foreign nationals of Indian origin to register as OCIs.

Key takeaways 

• The Overseas Citizen of India (OCI) card grants several privileges similar to Indian citizens but does not confer full citizenship.
• Following categories of foreign nationals are eligible for registration as Overseas Citizen of India (OCI) Cardholder – 
  • Who were citizens of India at the time of, or after, the commencement of the Indian Constitution (26 January 1950).
  • Who were eligible to become citizens of India on 26 January 1950.
  • Who belonged to a territory that became part of India after 15 August 1947
  • who is a child or a grandchild or a great grandchild of such a citizen
  • who is a minor child of such persons mentioned above
  • who is a minor child and whose both parents are citizens of India or one of the parents is a citizen of India
  • Spouse of foreign origin of a citizen of India or spouse of foreign origin of an Overseas Citizen of India Cardholder (subject to certain conditions).
• However, no person, who or either of whose parents or grandparents or great grandparents is or had been a citizen of Pakistan, Bangladesh or such other country as the Central Government may, by notification in the Official Gazette, specify, shall be eligible for registration as an Overseas Citizen of India Cardholder.

Benefits of OCI

• Visa-Free Travel: OCI cardholders enjoy a multiple-entry, multipurpose lifelong visa to visit India.
• Residency Rights: They can live and work in India indefinitely.
• Economic Rights: OCI is entitled to general ‘parity with Non-Resident Indians in respect of all facilities available to them in economic, financial and educational fields except in matters relating to the acquisition of Agricultural land or Farm house or Plantation properties. 
• Exemptions: They are exempt from registering with the Foreigners Regional Registration Office (FRRO) regardless of the duration of their stay.

Restrictions on OCI

• No Political Rights: OCI cardholders cannot vote, hold constitutional offices (e.g., President, Vice-President, Judge of Supreme Court/High Court).
• The OCI Cardholder shall not be entitled for appointment to public services and posts in connection with the affairs of the Union or of any State except for appointment in such services and posts as the Central Government may, by special order, in that behalf, specify.
• No Agricultural Land: They cannot purchase agricultural or plantation properties in India.
• Revocation of OCI: The OCI card can be revoked if the holder violates Indian laws or engages in activities prejudicial to India’s interests.

OCI vs. Dual Citizenship

• India does not allow dual citizenship under the Citizenship Act, 1955.
• OCI is not dual citizenship but a form of permanent residency with limited rights.
• OCI cardholders retain their foreign citizenship while enjoying certain benefits in India.

Source: DD News

Syllabus:

• Prelims – ECONOMY

Context: India’s venture capital (VC) market experienced a sharp resurgence in 2024, with total funding reaching $13.7 billion, marking a 1.4x increase from 2023.

Background: –

• Several regulatory changes in 2024 created a more favourable investment environment, including the removal of the angel tax, reduction in long-term capital gains (LTCG) tax rates, streamlining of the National Company Law Tribunal (NCLT) process, and simplification of foreign venture capital investor (FVCI) registrations.

Key takeaways

• Venture Capital (VC) is a form of private equity financing provided to startups and small businesses that have high growth potential. 
• It plays a crucial role in fostering innovation, entrepreneurship, and economic development by providing capital to early-stage companies.

Key Features of Venture Capital

• High-Risk, High-Reward: Venture capital investments are risky because they are made in unproven businesses, but they offer the potential for substantial returns if the startup succeeds.
• Equity Stake: In exchange for funding, venture capitalists (VCs) receive an equity stake in the company.
• Active Involvement: VCs often provide mentorship, strategic guidance, and access to networks, in addition to funding.
• Stages of Funding: VC is provided at different stages, including seed funding, early-stage, and expansion-stage financing.
• VC funds in India are regulated by the Securities and Exchange Board of India (SEBI) under the Alternative Investment Fund (AIF) Regulations, 2012.

Source: Your Story

Q1.) Consider the following statements regarding Venture Capital (VC):

1. Venture capital is primarily invested in well established traditional corporate firms than in startups.
2. Venture capitalists provide funding in exchange for an equity stake in the company.
3. Venture capital in India is regulated by the Securities and Exchange Board of India (SEBI).

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3

Q2.) With reference to Overseas Citizens of India (OCI), consider the following statements:

1. OCI status grants individuals full citizenship rights, including voting and holding constitutional offices in India.
2. An OCI cardholder can undertake multiple entries and lifelong visa-free travel to India.
3. The OCI scheme was introduced through the Citizenship (Amendment) Act, 2005.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3

Q3.) Consider the following statements regarding the Chagos Archipelago:

1. It is located in the Indian Ocean.
2. The International Court of Justice (ICJ) has ruled that the United Kingdom should end its administration of the Chagos Islands and return them to Mauritius.
3. Diego Garcia, the largest island in the Chagos Archipelago, hosts a major U.S. military base.

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3

Comment the answers to the above questions in the comment section below!!

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Q.1) – a

Q.2) – a

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