UPSC Current Affairs – January 27, 2021

As India and Bangladesh mark 50 years of the establishment of diplomatic ties after the 1971 war and Bangladesh’s liberation, the two nations are celebrating strong bilateral relations. The war led to the surrender of Pakistani forces and the birth of Bangladesh. India was one of the first nations to recognize Bangladesh. Over the past 50 years, ties have expanded across domains like defence, security, water sharing, power, economics and culture.

There are still some disputes to resolve on issues like border incidents and sharing of river waters. But with robust cooperation on connectivity, power and economics, the India-Bangladesh relationship stands on strong footing as the two nations also partner on regional and global forums like SAARC and BIMSTEC.

IMF Forecasts 11.5% Growth for India in 2021-22

The International Monetary Fund (IMF) has projected India’s GDP will rise by 11.5% in 2021-22, making it the only major economy expected to register double-digit growth this year amidst the pandemic. The IMF cited India’s “very decisive” policy actions to deal with the economic impact of COVID-19 for the higher growth estimates.

This includes fiscal stimulus packages like the Pradhan Mantri Garib Kalyan Yojana, liquidity measures for businesses under the Aatmanirbhar Bharat campaign, and RBI’s economic relief measures. The Budget 2021-22, with its focus on infrastructure and healthcare spending, is also expected to boost growth. India, which witnessed record a GDP contraction of 10.3 percent in 2020-21 as per IMF, is projected to grow by 6.8% in 2022-23.

UNCTAD: Global FDI Dropped 42% to $859 Billion in 2020

As per a recent report by the UN Conference on Trade and Development (UNCTAD), global foreign direct investment (FDI) fell by 42% in 2020 compared to 2019 levels. At $859 billion, 2020 global FDI reached its lowest levels since the 1990s, declining more than after the 2008 financial crisis.

Among major economies, the UK, Russia, Brazil, US and Germany saw FDI decline between 39% to above 95%. India was a rare positive outlier, registering a 13% annual rise in FDI inflows to $57 billion, the highest among major economies. Experts cited rising investments in India’s digital economy and favorable demographics combined with growing mobile/Internet penetration and massive consumption capability as key draws. But with continuing pandemic uncertainty, UNCTAD warned FDI inflows are not expected to recover significantly in 2021.

IIT Delhi Study Links PM2.5 Exposure to Childhood Anaemia

A new study by IIT Delhi has linked long-term exposure to PM2.5 particulate matter to increased risk of anaemia in children under 5 years, especially among low income groups. PM2.5 particles released by fuel combustion can trigger inflammation responses in the body over time. The study found 63% children surveyed were anaemic.

Higher PM2.5 concentration exposure decreases average haemoglobin levels. As interventions currently focus on nutritional deficiencies, especially iron, as the key trigger for anaemia, the study highlights air pollution as an additional causative factor that must be addressed through emissions cuts and cleaner air policies.

Railways Embraces Transit-Oriented Development for Major Stations

In a first for North India, the Rail Land Development Authority has approved a major redevelopment project for the New Delhi Railway Station based on transit-oriented development guidelines. The concept, which is being promoted under the government’s urban development programs, focuses on creating high-density mixed land use zones centered around transport hubs like metro, rail and bus stations to enable livable and walkable smart communes.

This cuts down vehicular pollution, congestion and long commute times. The New Delhi Railway Station project, along with other major railway junction redevelopment plans in the pipeline, will integrate commercial, residential and retail spaces with transport connectivity to set an example of efficient use of space.

Government Proposes Green Tax on Older Vehicles to Curb Pollution

The Ministry of Road Transport and Highways has announced a proposal to levy a ‘Green Tax’ on older vehicles at the time of renewal of fitness certificate. The tax, to be levied at 10-25% of road tax, aims to discourage the use of polluting vehicles and funds raised will support pollution control. Vehicles over 8 years old will be charged while strong hybrids, EVs, CNG, ethanol and farm vehicles will be exempt.

Differential rates are also proposed for private and public transport. The proposal aligns with ‘polluter pays principle’ whereby the costs of managing pollution are covered by pollution producers. However, additional taxes could overburden vehicle owners and boost inflation. Instead, the focus should be on price rationalization and subsidies to promote cleaner vehicles.

Padma Awards 2021 Conferred, Honour Exceptional Contributions

On India’s 72nd Republic Day, the President conferred the prestigious Padma Awards recognising 119 distinguished individuals for their exemplary contributions across diverse fields.

The 7 eminent Padma Vibhushan recipients included Japan’s Shinzo Abe, legendary singer SP Balasubramaniam and medical luminary Dr Devi Shetty. 10 were awarded the Padma Bhushan, the nation’s second highest civilian award, including renowned singers KS Chithra and Ilayaraja. 102 were awarded the Padma Shri awards for remarkable accomplishments in fields ranging from sports, art, science, medicine and more. Instituted in 1954, the Padma Awards highlight national pride in the achievements of selected Indians who make a mark through commitment to public service.

UN Projects Severe Economic Damage from Global Warming by 2030

A new United Nations report has delivered a stark warning on the severe future impact of climate change. It estimates economic losses of $1.7 trillion globally by 2030 purely as a result of higher temperatures. Major economies like India, US, China and Japan face the highest losses.

Key causes are lowered agricultural yields, adverse health effects leading to lower labor capacity and industrial output cuts due to heat stress. Global average livelihood and capital asset losses may reach $400 billion and $1.3 trillion per year if global average temperatures rise by just 1.5°C from now, not accounting for severe weather events. The UN has called for much more ambitious climate action commitments from nations to restrict temperature rise closer to 1.5°C by 2030.

Government Initiates Major Rail, Metro Projects to Boost Economy

In a growth-boosting push for greater infrastructure spending aimed at reviving the economy in the pandemic year, the Railway Ministry has initiated significant new metro and semi-high speed rail connectivity projects.

The projects include extending Delhi Metro connectivity to Chandigarh Technology Park Rapid Rail via Himachal; 4 major station redevelopment plans at Delhi, Mumbai, Lucknow & 3 more cities; Mumbai Coastal Road link; and a rapid rail transit system between Delhi and Meerut with potential extension to adjoining towns. The Rs 25,000 crore worth of new projects approved recently will spur job creation through 2022 with construction activity at full steam across sites. Improved urban connectivity and integrated transport are also on the agenda.

India’s Wind Power Capacity to Clock 20-25% Growth Annually

As India sets ambitious renewable energy capacity expansion targets, the wind energy sector is expected is poised for robust 20-25% annual growth over the next few years according to the Global Wind Energy Council. Cost economics due to larger, more efficient wind turbines clubbed with low solar bid tariffs have made wind power equally competitive.

The Ministry of New and Renewable Energy forecasts wind power capacity doubling from around 38 GW currently to as much as 140 GW by 2030. The private sector will drive growth with continued foreign and domestic investments by independent power producers attracted by consistent policy support, green incentives and ease of business reforms by states. Offshore wind projects also hold high potential.