Syllabus

• Prelims – Geography

Context: Iranian President Ebrahim Raisi’s death in a chopper crash has come at a time when Tehran’s role in the peace and stability in the region has been under a sharp focus.

Background:-

• The focus on Iran in recent months has been due to the events that took place since October 7, when Hamas brutally attacked Israelis on their soil, and the Israeli response on Gaza has been perceived to be hugely disproportionate. India, which considers Iran to be part of its extended neighbourhood, has been watching Iran’s dynamics in the region quite closely and cautiously.

About IRAN

• Geography: Iran is bordered by Iraq to the west and Turkey to the northwest, Azerbaijan, Armenia, the Caspian Sea and Turkmenistan to the north, Afghanistan to the east, Pakistan to the southeast, the Gulf of Oman and the Persian Gulf to the south.
• Population: With a mostly Persian-ethnic population of almost 90 million, Iran ranks 17th globally in both geographic size and population.
• Government: Iran is a unitary presidential theocratic Islamic republic. The Supreme Leader is Ali Khamenei.
• Economy: Iran’s GDP (PPP) in 2024 is estimated to be $1.855 trillion, ranking 19th globally.
• Languages: The official language is Persian, but there are several recognized regional languages.
• Iran is a major regional power, due to its large reserves of fossil fuels, including the world’s second largest natural gas supply, third largest proven oil reserves, its geopolitically significant location, its military capabilities, its regional influence, and its role as the world’s focal point of Shia Islam.
• Iran is an active and founding member of the United Nations, the NAM, the ECO, the OIC and the OPEC. It is a full member of both the Shanghai Cooperation Organisation and BRICS.

Source: Indian Express

Syllabus

• Prelims – Current Event

Context: The Indian Council of Medical Research (ICMR) has distanced itself from the Banaras Hindu University (BHU) researchers for “incorrectly” associating it with an observational study on the side effects of the Covid-19 vaccine Covaxin.

Background:

• The Indian Council of Medical Research (ICMR), the apex body in India for the formulation, coordination and promotion of biomedical research, is one of the oldest and largest medical research bodies in the world.

About INDIAN COUNCIL OF MEDICAL RESEARCH (ICMR)

• In 1911, the Government of India set up the Indian Research Fund Association (IRFA) with the specific objective of sponsoring and coordinating medical research in the country.
• After independence, several important changes were made in the organisation and the activities of IRFA. It was redesignated as the Indian Council of Medical Research (ICMR) in 1949, with a considerably expanded scope of functions.

Mandate

• Apex body in India for formulation, coordination and promotion of biomedical research
• Conduct, coordinate and implement medical research for the benefit  of the Society
• Translating medical innovations in to products/processes and introducing them in to the public health system

Additional Information

• The ICMR is funded by the Government of India through the Department of Health Research, Ministry of Health and Family Welfare.
• In 2007, the organization established the Clinical Trials Registry – India, which is India’s national registry for clinical trials.
• ICMR’s 26 national institutes address themselves to research on specific health topics like tuberculosis, leprosy, cholera and diarrhoeal diseases, viral diseases including AIDS, malaria, kala-azar, vector control, nutrition, food & drug toxicology, reproduction, immuno-haematology, oncology, medical statistics, etc.
• Its 6 regional medical research centres address themselves to regional health problems, and also aim to strengthen or generate research capabilities in different geographic areas of the country

Governance

• The governing body of the council is presided over by the Union Health Minister.
• It is assisted in scientific and technical matters by a scientific advisory board comprising eminent experts in different biomedical disciplines. The board, in its turn, is assisted by a series of scientific advisory groups, scientific advisory committees, expert groups, task forces, steering committees etc. which evaluate and monitor different research activities of the council.

Source: Hindu

Syllabus

• Prelims & Mains – Economy

Context: The government is considering options to relax the 45-day payment rule to MSMEs that has come into effect from April 1, 2023, as the rule may disrupt business practices due to its severity and lack of clarity.

Background:

• According to Section 43B(h) of the Income Tax Act, introduced through the Finance Act 2023, if a larger company does not pay an MSME on time — within 45 days in case of written agreements — it cannot deduct that expense from its taxable income, leading to potentially higher taxes.MSMEs fear that due to this provision, large buyers could cold-shoulder MSME suppliers and start buying either from those MSMEs that are not registered with Udyam or from non-MSMEs.

About MSMEs:

• Micro, Small, and Medium Enterprises are better known by the acronym MSME. They silently operate across various areas in India, contributing significantly to the country’s GDP.
• More than 6 crore MSMEs serve as the backbone of our economy, accounting for approximately 30% of the GDP, 45% of manufacturing output, and around 48% of exports.
• Remarkably, over 11 crore people find employment within the MSME sector, making it an essential driver of economic growth.

Recent Changes:

• As of July 1, 2020, the definition of MSMEs was revised to align with market conditions and ease of doing business.
• The new criteria are based on investment amount and turnover:
  • Micro: Investment up to ₹1 crore and turnover up to ₹5 crore.
  • Small: Investment up to ₹10 crore and turnover up to ₹50 crore.
  • Medium: Investment up to ₹50 crore and turnover up to ₹250 crore.
• Importantly, exports turnover is excluded from the turnover calculation, encouraging MSMEs to explore international markets without losing benefits.

Issues associated with the MSMEs:

• Lack of skilled labour: MSMEs often struggle to find skilled workers, which can make it difficult for them to grow and expand their businesses.
• Bureaucratic red tape: MSMEs have to navigate a complex web of regulations and bureaucratic procedures, which can be time-consuming and costly.
• Competition from larger companies: MSMEs in India often have to compete with larger, more established companies, which can make it difficult for them to succeed in the market.
• Access to finance: MSMEs often struggles to access capital due to a lack of collateral or credit history or access to formal financial institutions.
• Lack of infrastructure: MSMEs often lack access to basic infrastructure, such as electricity and transportation, which can make it difficult for them to operate their businesses.
• Lack of technological know-how: MSMEs often lack the technical knowledge and expertise to modernize their operations and stay competitive in the market.
• Issues with supply chain and logistics: MSMEs face issues with supply chain and logistics, which can make it difficult for them to get their products to market in a timely and cost-effective manner.
• Lack of formalization: Many MSMEs in India are unregistered or operate informally, which can make it difficult for them to access government support and benefits.
• Lack of marketing and networking opportunities: MSMEs in India often lack the resources and networks to effectively market their products and services, which can make it difficult for them to reach new customers and grow their businesses.

Source: Business Today

Syllabus

• Prelims & Mains – Environment

Context: The Centre has approved 12 greening projects under the Green Credit Program (GCP), which was notified last year as a market-based mechanism designed to incentivize voluntary environmental actions across diverse sectors, officials aware of the development said.

Background:

• The GCP, notified on October 13, 2023, seeks voluntary participation in “environmental positive actions” such as afforestation, water conservation, waste management among others from PSUs, private industries, non-profits and individuals.

ABOUT GCP:

• The Green Credit Programme is an innovative market-based mechanism designed to incentivize voluntary environmental actions across diverse sectors.

Objective:

• This programme was officially unveiled in October 2023 and has its provenance in Mission Life, a principle frequently articulated by Prime Minister Narendra Modi. Its goal is to lay an emphasis on sustainability, reduce waste and improve the natural environment.
• The GCP programme presents itself as an “innovative, market-based mechanism” to incentivise “voluntary actions” for environmental conservation.
• Under this, individuals, organisations and companies — public and private — would be encouraged to invest in sectors ranging from afforestation, water conservation, stemming air-pollution, waste management, mangrove conservation and in return be eligible to receive ‘green credits.’
• It complements the domestic carbon market by incentivizing sustainable actions by companies, individuals, and local bodies.
• An autonomous body of the Ministry, the Indian Council of Forestry Research and Education (ICFRE), is in charge of administering the programme. It is responsible for programme implementation, management, monitoring, and operation.

How It Works:

• Various stakeholders, including individuals, industries, farmers’ producer organizations (FPOs), urban local bodies (ULBs), and private sectors, can earn green credits.
• Environment-friendly actions, such as planting trees, conserving water, waste management, and reducing air pollution, qualify for green credits.
• These credits are tradable, and participants can sell them on a proposed domestic market platform.

Example

• In February, the Ministry prescribed the rules governing the first of these initiatives — afforestation.
• Broadly, companies, organisation and individuals could offer to pay for afforestation projects in specific tracts of degraded forest and wasteland. It said, the actual tree planting would be carried out by the State forest departments.
• Two years after planting and following an evaluation by the ICFRE, each such planted tree could be worth one ‘green credit.’

Source: The Hindu

Syllabus

• Prelims & Mains – Current Event, GS 2

Context:  The first inter-ministerial delegation from India held meetings from May 15-17 under the Intergovernmental Framework Agreement between the two countries concerning cooperation for the empowerment and operation of the India-Middle East-Europe Economic Corridor .

Background:

• The visit, which took place within three months of signing the Agreement, reflects the importance both governments attach to the IMEC project.

About India Middle East Europe Economic Corridor

• The India-Middle East-Europe Economic Corridor (IMEC) was announced in September 2023 following a meeting in New Delhi between the leaders of India, the US, the United Arab Emirates (UAE), Saudi Arabia, Italy, France, Germany, and the European Commission on the sidelines of the G20 Summit.
• The IMEEC will comprise two separate corridors, the east corridor connecting India to the Gulf and the northern corridor connecting the Gulf to Europe.
• The corridor will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement existing maritime routes.
• It intends to increase efficiency, reduce costs, secure regional supply chains, increase trade accessibility, enhance economic cooperation, generate jobs and lower greenhouse gas emissions, resulting in a transformative integration of Asia, Europe and the Middle East (West Asia).

Additional Information

• The Israel-Hamas war brings concern on the future of IMEC, along with attacks on vessels in the Red Sea by Houthi rebels.
• In September 2023, Turkish president Recep Tayyip Erdogan criticised the project for bypassing Turkey, and has vowed for an alternative route, the “Iraq Development Road Project”, which is envisaged to connect the Persian Gulf with Europe through a railway and highway via ports in the United Arab Emirates, Qatar, and Iraq, including the under-construction Grand Faw Port.
• It is also seen as a counter to China’s Belt and Road Initiative.

Source: Hindu

Syllabus

• Mains – GS 2, GS 3

Context: Investment in important sectors identified to spur domestic manufacturing under the flagship Production-Linked Incentive (PLI) scheme of the Centre is slowing just a year after their launch.

Background:

• Investment growth is “significantly slow” in textiles, information technology hardware, and speciality steel according to a review report by an inter-ministerial panel which does periodical stocktaking of the scheme.
• The government was hoping to see investment worth Rs 49,682 crore in FY24. Of this, 61.8 per cent or over Rs 30,695 crore has been made in all the 14 sectors during the first nine months this financial year.
• Apart from the above-mentioned three sectors, progress has been slow in the case of medical devices, automobile and auto components, ACC batteries, and white goods.

Production-Linked Incentives (PLI) Scheme:

• It was first introduced in March 2020, PLI is a special incentive scheme for producers to promote manufacturing in multiple sectors. The incentives are linked to the performance of the organisation i.e., the government provides incentives for incremental sales.
• The PLI scheme is built on the foundation of multiple sectors with an incentive outlay of Rs. 1.97 lakh crore (about US$ 26 billion) to strengthen their production capabilities and help create global champions.

Benefits of the PLI Scheme:

• Since the incentives are directly proportional to production capacity/ incremental turnover, it is expected to have a direct impact on capacity expansion.
• PLI can significantly restructure India’s domestic manufacturing, and push its share in the GDP to 25 percent. It is also expected to bring improvements in industrial infrastructure, benefiting the overall supply chain ecosystem.
• The implementation of the PLI Scheme will lead to a potential capital expenditure (capex) of Rs 2.5-3 lakh crore over the scheme period. It will account for 13-15% of average annual investment spending in key industrial sectors.
• Nearly 55% of the scheme is expected to be in green sectors such as electric vehicles, solar photovoltaics etc.
• PLI Schemes intend to plug the gap between the highly skewed Indian import-export basket, which is mainly characterized by heavy imports of raw materials and finished goods. It will help in offsetting the effects of geopolitical conflicts and their consequent impact on food, fertilizer, and crude oil prices.
• It fosters faster adoption of technology, e.g., in telecom and networking products, where timely intervention by the scheme will enable faster adoption of 4G and 5G products across India.
• The PLI scheme enables the smooth implementation of region-specific incentives to promote industrial development in underdeveloped or backward regions.

Issues/Challenges to the PLI Scheme:

• The manner in which incentives are to be awarded remains ambiguous. There are no set criteria or common parameters for consideration for giving these incentives.
• The efficacy of manufacturing depends on multiple factors like raw materials, the size of the domestic market, and the relationship between upstream and downstream manufacturers, etc. Thus, production subsidies to scale sector-specific manufacturing will not work until other critical factors shaping the ecosystem are understood and factored in.
• Withdrawing from these benefits at a later stage may ultimately lead to industrial inefficiencies and engender a decline in productivity both at the sectoral and firm levels.
• Beneficiaries under the scheme such as automobiles, electronics, and technical textiles are largely constituted by big firms. This is not representative of the actual configuration of the Indian industrial structure, which is largely composed of MSMEs.
• The lack of a centralized database that captures information like increases in production or exports makes the evaluation process difficult. This information ambiguity impacts transparency and can lead to malfeasance, further widening the fault lines and weakening the policy structure.

Source: Business Standard

Q1.) Consider the following statements about Green Credits Program

1. Indian Council of Forestry Research and Education (ICFRE), is in charge of administering the programme.
2. Green credits earned through the program are tradable.

Which among the statements given above is/are correct?

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

Q2.) Consider the following statements about INDIAN COUNCIL OF MEDICAL RESEARCH (ICMR) :

1. The Governing Body of ICMR is presided over by the Union Health Minister.
2. ICMR established the Clinical Trials Registry – India, which is India’s national registry for clinical trials.

Which among the statements given above is/are correct?

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

Q3.) Consider the following countries

1. Iran
2. India
3. Ethiopia
4. Brazil
5. Russia

Which among the above countries are part of BRICS:

1. Only two
2. Only three
3. Only four
4. All

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

ANSWERS FOR ’  21st May 2024 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs.st

Q.1) – c

Q.2) – b

Q.3) – c