Table of Contents
”UPSC News Diary For Today” is every day published in the evening between 6-7 PM and contains all current affairs articles from the day on a single platform. ”UPSC News Diary For Today” covers various topics from UPSC Syllabus and is very helpful and time managing for UPSC Aspirants. The framing of this daily current affairs compilation article is easy to read and understandable also.
In the ”UPSC News Diary For Today” article, we focus on both UPSC Preliminary and Mains exam-oriented current affairs & prepare a gist of daily important news articles from leading National Newspapers, PIB, and other various official sources.
XIV BRICS Summit 2022
BRICS Summit: Key Points
- The BRICS Summit (14th) for the year 2022 is been held on 23-24 June 2022.
- Theme: The theme of this year’s summit is: “Foster High-quality BRICS Partnership, Usher in a New Era for Global Development”
- Participants: Leaders of the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China and the Republic of South Africa participated in XIV BRICS Summit.
BRICS Summit: Beijing Declaration
Strengthening and Reforming Global Governance
BRICS emphasised on making instruments of global governance more inclusive, representative, responsive, effective, transparent, democratic, objective, action-oriented, solution-oriented, credible and participatory to facilitate greater and more meaningful participation of developing and least developed countries
Working in Solidarity to Combat COVID-19
BRICS countries should be better prepared for COVID-19 and future public health emergencies, and enhance exchanges and cooperation on public health emergency alert, pandemic prevention preparedness and response, and best practices in medical treatment.
Safeguarding Peace and Security
To respect the sovereignty and territorial integrity of all States, stress our commitment to the peaceful resolution of differences and disputes between countries through dialogue and consultation, support all efforts conducive to the peaceful settlement of crises.
Promoting Economic Recovery
Commitment to strengthening intra-BRICS cooperation to intensify the BRICS Partnership on New Industrial Revolution (PartNIR) and collectively create new opportunities for development.
Expediting Implementation of the 2030 Agenda for Sustainable Development
BRICS reaffirm its commitment to the implementation of the 2030 Agenda in all its three dimensions – economic, social and environmental – in a balanced and integrated manner.
Deepening People-to-People Exchanges
BRICS welcomed signing of the Action Plan for the Implementation of the Agreement between the Governments of the BRICS States on cooperation in the Field of Culture (2022-2026).
Institutional Development
BRICS note with satisfaction the progress made in BRICS institutional development and stress that BRICS cooperation needs to embrace changes and keep abreast with the times.
Baba Banda Singh Bahadur
Key Information about Baba Banda Singh Bahadur
- Baba Banda Singh Bahadur was a great Sikh warrior and a commander of Khalsa army who defeated the Mughals and freed a large part of North India.
- He established the Khalsa rule in Punjab.
- Banda Singh Bahadur abolished the Zamindari system, and granted property rights to the tillers of the land.
- He was a Noble ruler who introduced the Nanak Shahi coins.
- He was captured by Mughal ruler Farrukhsiyar and brought to Delhi and put to death in a most inhuman manner.
- This martyrdom took place in Mehrauli where a monument still stands in memory of his martyrdom which is an icon of exemplary courage, bravery and deep-rooted faith in dharma.
- He was a great and true disciple of Guru Govind Singh Ji Sahib.
Budget Deficit
Know about Budget Deficit
- Budgetary deficit is the sum of revenue account deficit and capital account deficit.
- If revenue expenses of the government exceed revenue receipts, it results in revenue account deficit.
- Similarly, if the capital disbursements of the government exceed capital receipts, it leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.
Twin Deficit Problem
What is it?
- The twin deficits are the fiscal deficit and the current account deficit. Both have a tendency to increase to levels considered risky for maintenance of macroeconomic stability, and especially the rupee-dollar exchange rate, whenever there are external shocks.
- India typically runs a current account deficit. This actually means that India invests in excess of domestic savings. That excess is identical to the value of the current account deficit.
- The fiscal deficit is the borrowing the government undertakes to finance expenditure in excess of its non-borrowed receipts. Non-borrowed receipts include capital receipts (loans repaid, assets sold) and current receipts (tax revenues, dividends from state undertakings, interest earnings from past loans made, spectrum usage charges, etc).
BRICS Business Forum 2022
Relevance for UPSC Exam
- BRICS Business Forum 2022: It is being organized under the BRICS grouping to promote trade and business among the member countries. BRICS is an Important forum from India’s diplomacy point of view. BRICS Business Forum will come under GS Paper 2 (International Relations- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests) of the UPSC CSE Syllabus.
BRICS Business Forum 2022 in News
- While addressing the BRICS Business Forum 2022, PRIME MINISTER Narendra Modi proposed that the BRICS Business Forum may develop a platform for regular exchanges between start-ups in BRICS countries.
- He also called for a dialogue on “innovation-led economic recovery”.
Key Points about BRICS Business Forum 2022
- About: The BRICS Business Forum meeting was held ahead of the 14th summit of BRICS nations – Brazil, Russia, India, China and South Africa.
- BRICS Business Forum 2022 Chair: China is chairing the BRICS Business Forum 2022.
- Location: BRICS Business Forum 2022 is being held in Beijing via video link.
8th BRICS Environment Ministers Meeting
BRICS Business Forum
- About: The BRICS Business Council was established during the Fifth BRICS Summit held on 26th – 27th March 2013 in Durban, South Africa.
- Key Objectives: BRICS Business Forum have following key objectives-
- Promote and strengthen business, trade and investment ties amongst the business communities of the five BRICS countries;
- Ensure that there is regular dialogue between the business communities of the BRICS nations and the Governments of the BRICS countries; and
- Identify problems and bottlenecks to ensure greater economic, trade and investment ties amongst the BRICS countries and recommend solutions accordingly.
BRICS Business Council Working Groups
- Working Groups: under the aegis of the BRICS Business Council, nine working groups have been formed. They are in the areas of-
- Infrastructure,
- Manufacturing,
- Financial Services,
- Energy & Green Economy,
- Skills Development,
- Agribusiness,
- Deregulation,
- Regional Aviation and
- Digital Economy
- The main objectives of these Working Groups are to-
- Facilitate interaction amongst businesses with a view to better understand the market opportunities and build synergies based on their respective competitive strengths and
- Promote industrial development and job creation.
About BRICS Grouping
- BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China, and South Africa.
- Background: In 2001, Goldman Sachs’ Jim O’Neill authored a paper called “Building Better Global Economic BRICs”, pointing out that future GDP growth in the world would come from China, India, Russia, and Brazil.
- Though the paper did not recommend any formal grouping, it said that BRIC economies combined would outstrip the western dominated world order before 2039.
- BRICS Formation: In 2006, leaders of the BRIC countries met on the margins of a G-8 (now called G-7) summit in St. Petersburg, Russia, and BRIC was formalized that year.
- Shortly afterward, in September 2006, the group was formalized as BRIC during the 1st BRIC Foreign Ministers’ Meeting, which met on the sidelines of the General Debate of the UN Assembly in New York City.
- First formal summit: took place in 2009 in the Russian Federation and focused on issues such as reform of the global financial architecture.
- South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.
- South Africa subsequently attended the Third BRICS Summit in Sanya, China, in 2011.
- BRICS Headquarters: BRICS doesn’t have any headquarter rather all the countries of BRICS have offices dedicated to BRICS in their own nation.
- BRICS Structure: BRICS does not exist in the form of organization, but it is an annual summit between the supreme leaders of five nations.
- BRICS Presidency: The Chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
- India had the BRICS Presidency from January 2021.
- Currently, China has the BRICS Presidency.
7th BRICS Culture Ministers’ Meeting
NIRYAT Portal
Relevance
- GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
MSME in India: Context
- Recently, Prime Minister Narendra Modi inaugurated ‘Vanijya Bhawan’ and launched the NIRYAT portal to provide real time data to all stakeholders.
Niryat portal: Key points
- New Vanijya Bhawan will significantly benefit people associated with trade, commerce and MSME sector.
- NIRYAT – National Import-Export for Yearly Analysis of Trade portal will help in breaking silos by providing real time data to all stakeholders.
- From this portal, important information related to more than 30 commodity groups exported to more than 200 countries of the world will be available.
- In the coming time, information related to district-wise exports will also be available on this portal.
- This will also strengthen the efforts to develop the districts as important centers of exports.
Exports from India
- India’s exports stood at a total of $ 670 billion i.e., Rs 50 lakh crore.
- India has also crossed the $400 billion threshold and created a new record of export of $ 418 billione., 31 lakh crore rupees.
Why India should focus on export?
- Creates a virtuous cycle of employment, income growth, and demand-led industrial growth: as the export will drive domestic manufacturing-led employment and per-capita income. This will increase disposable income resulting in demand-driven economic growth.
- Export and economic growth:
- Pre-1991, a 3.5% growth rate was associated with export growth of about 4.5%.
- However, India’s GDP growth of over 6% after 1991 was associated with real export growth of about 11%.
- Improved sovereign credit rating: Export growth will help in reducing India’s trade deficit, nudging credit rating agencies to improve India’s credit rating resulting in lower interest loans and economic growth.
Challenges of Indian Export ecosystem
- Government’s focus on domestic consumption-led growth model:
- Poor growth in per capita income: will limit the consumption of goods and services.
- COVID-19 effect: resulted in poor public spending, tax cuts, private investment, etc., limiting the scope for domestic demand-led growth.
- Disconnect with Global Value Supply Chains (GVC): Unlike major exporting countries of east and south-east Asia, India is poorly connected with GVCs. This limits its export potential.
- This results in low penetration in high-income countries.
- Focus on limited export destination: This results in high competition and fewer growth opportunities.
- Poor domestic infrastructure and clear policy direction: for example, India spends more than 14% of its GDP on logistics, resulting in costlier products for international markets, diminishing their competitiveness.
- Lack of awareness: There is an information gap among people of India, resulting in fewer people participating in the export market.
- Technical barriers to trade: Imposed by many developed countries to reject exports from India. For example, use of sanitary and phytosanitary measures by European Union countries to rejects various Indian goods.
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New Coral Species in India
Relevance for UPSC Exam
New Coral Species in India: Coral Species are very important part of Ocean ecosystem. Protection of Coral species is very important for the overall environment and ecology of the world. Coral Species are part of UPSC Mains GS Paper 3 (Environment- Conservation, environmental pollution and degradation).
News Coral Species in News
- Scientists have recorded four species of corals for the first time from Indian waters. These new species of azooxanthellate corals were found from the waters off the Andaman and Nicobar Islands.
About New Coral Species in India
- About new Corals: The four new coral species founded are of azooxanthellate corals. All the four groups of corals are from the same family, Flabellidae.
- Location: The new species of corals were found from the waters off the Andaman and Nicobar Islands.
- Azooxanthellate corals: They are a group of corals that do not contain zooxanthellae and derive nourishment not from the sun but from capturing different forms of planktons.
- They are deep-sea representatives with the majority of species being reported from depths between 200 metres and 1,000 metres.
- They are also reported from shallow waters unlike zooxanthellate corals that are restricted to shallow waters.
- Azooxanthellate corals are a group of hard corals and the four new species recorded are not only solitary but have a highly compressed skeletal structure.
- Distribution: Truncatoflabellum crassum, T. incrustatum, T. aculeatum, and T. irregulare under the family Flabellidae were previously found in Japan, the Philippines and Australian waters, while only T. crassum was reported with the range of Indo-West Pacific distribution.
- Significance: These new species enhance our knowledge about non-reef-building solitary corals.
- The new species enhance the national database of biological resources of India and also define the expansion of scope to explore these unexplored and non-reef building corals.
Coral reefs significance
Economic significance
- The value of goods and services provided by coral reefs is estimated at US$2.7 trillion per year, including US$36 billion in coral reef tourism.
Ecological significance
- Coral reefs support at least 25% of marine species and underpin the safety, coastal protection, wellbeing, food and economic security of hundreds of millions of people.
- Soft corals bend and sway amongst the craggy mountains of hard corals providing additional homes for fish, snails and other marine creatures.
- Coral reefs harbour the highest biodiversity of any of the world’s ecosystems, making them one of the most biologically complex and valuable on the planet.
Status of Coral Reefs of the World Report
Millets in India
Relevance
- GS 3: Major crops-cropping patterns in various parts of the country.
Millets in India: Context
- Recently, Ministry of Food Processing Industries has inaugurated the National Conference on Millets on the theme ‘The Future Super Food for India’ to discuss opportunities and challenges in ensuring food and nutritional security.
National Conference on Millets: Key points
- The conference is being organised by industry body ASSOCHAM with the support of Ministry of Food Processing Industries.
- The production of coarse cereals in the country has increased to 17.96 million tonnes in 2020-21 from 14.52 million tonnes in 2015-16 and the production of bajra (pearl millet) has also increased to 10.86 million tonnes in the same period.
Benefits of Millets
- Due to its ability to be easily preserved for a long time even under ordinary conditions, coarse grain is considered a storehouse in times of famine.
- Millets have been among the oldest eatables in the country. It is a crop grown from small seeds which can be grown well in dry areas or even on lands with deficient and low fertility thus is known as the superfood of India.
- Due to their short growing season, millets can develop from seeds to ready-to-harvest crops in just about 65 days and this characteristic of the millets is of vital importance in thickly populated regions of the world. If stored properly, millets can keep well for two years or beyond.
- There is a need to mainstream millets to improve India’s nutrition outcomes.
- The major millets producing states in India include Haryana, Uttar Pradesh, Chhattisgarh, Gujarat, Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.
The nutritional benefit of millets
- They are rich in minerals and B-complex vitamins, as well as proteins and antioxidants, making them an ideal choice for improving the nutritional outcome of children.
- However, despite such benefits, consumption of millets remains low due to lack of awareness and availability.
- As per National Family Health Survey-IV, 38 per cent of children under five years of age are stunted and 59 per cent of children are suffering from anaemia.
- Among one of the series of initiatives, to reduce malnutrition and anaemia, the Government is laying emphasis on consumption of millets.
- NITI Aayog has also been advocating the need to introduce millets in the mid-day meal programme, moving away from rice and wheat.
- Moreover, in 2019, NITI Aayog had released a report showing the benefits of millets based on a study among adolescents in four Karnataka schools.
Government steps to increase millets production
- Government of India has already revised the guidelines to facilitate the movement of the surplus production of millets to other states.
- The provision of inter-state transportation of surplus millets through the Food Corporation of India (FCI) is incorporated to cater for advance demands placed by consuming states before the start of procurement.
- India is now the 5th largest exporter of millets globally.
- 2023 will be the international year of millets that will create value generation and promotion of sustainable products in food choices.
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New TDS Rules
Relevance
- GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
TDS Rules in India: Context
- Recently, Central Board of Direct Taxes (CBDT) has issued guidelines on the applicability of new TDS provisions regarding benefits received in a business or profession and said that such perquisites can either be in cash or kind or partly in both of these forms.
New TDS rules Key points
- CBDT said that the payer/deductor need not check the taxability of the sum in the hands of the recipient, and the nature of the asset given as benefit or perquisite is not relevant.
- The guidelines explain the circumstances in which the new TDS provision will apply from 1 July.
- The new TDS provision makes a 10 per cent tax deducted at source (TDS) mandatory on the freebies received from sales promotions.
- Objective: The new provision is aimed at broadening the tax base and ensure that those beneficiaries of such type of sales promotion expenditure by businesses, report it in their tax returns and pay tax on what the benefit is worth.
- Section 194R in the I-T Act was brought in which requires deduction of tax at source at the rate of 10 per cent by any person, providing any benefit or perquisite exceeding Rs 20,000 in a year to a resident, arising from the business or profession of such resident.
- Social media influencers: They will be liable for TDS if the product allotted to them by a company for its marketing efforts is retained by the individual.
- However, the TDS will not apply if the product is returned to the company.
- Doctors: If doctors are receiving free samples of medicines while employed in a hospital, Section 194R would apply on the distribution of free samples to the hospital.
- The hospital as an employer may treat such samples as taxable perquisite for employees and deduct tax under Section 192. In such cases, the threshold of Rs 20,000 has to be seen with respect to the hospital.
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Carbon Pricing Leadership Report
Relevance
- GS 3: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Carbon trading system: Context
- Recently, World Bank has released a new report titled, ‘Carbon Pricing Leadership Report’, which presents the latest carbon pricing developments around the world.
Carbon Pricing Leadership Report 2022: Key points
- The report was launched at Innovate4Climate, the World Bank Group’s flagship annual event on climate finance, investment, and markets.
- The report has revealed that Global carbon pricing revenue in 2021 has increased by almost 60% from 2020 levels.
- Four new carbon pricing instruments were implemented since the release of the 2021 State and Trends of Carbon Pricing report.
Carbon Pricing Leadership Report 2022: Key findings
- The report finds that there are 68 direct carbon pricing instruments operating today: 36 carbon taxes and 32 Emissions Trading Systems (ETSs).
- Carbon prices hit record highs in many jurisdictions, including the European Union, California, New Zealand, the Republic of Korea, Switzerland and Canada.
- However, the report finds that less than 4 percent of global emissions are currently covered by a direct carbon price in the range needed by 2030 to meet the temperature goal of the Paris Agreement.
- Several countries have increased their carbon tax rates and adopted more ambitious trajectories. Moreover, pilot ETSs are being considered in a number of countries, including national and regional programs.
Carbon trading: Why needed?
- Even as COVID pandemic starts to recede, the war in Ukraine threatens to impact global development outcomes.
- Moreover, the findings of the latest IPCC reports provide a stark warning. We must decarbonize our economies at an accelerated pace and scale and reach net zero emissions by 2050.
- We must avoid fundamentally altering our planet’s climate and its irreversible impacts on development.
- Bold and swift action must be taken to ensure that we can realize green, resilient and inclusive development.
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The Editorial Analysis: The Role of Caste in Economic Transformation
Relevance
- GS 1: Salient features of Indian Society, Diversity of India.
Context
- India is in a phase of jobless growth for at least two decades now. It is coupled with rising poverty and discontent in rural areas.
- The ongoing protests against the Agnipath programme, agitations against farm laws before, and agitation for reservation by agriculture castes are the outcomes of the jobless growth.
Role of caste in Indian economy
- In India, there is a link between economic transformation and caste.
- Caste, through its rigid social control and networks, facilitates economic mobility for some and erects barriers for others by mounting disadvantages on them.
- Caste also shapes the ownership pattern of land and capital and simultaneously regulates access to political, social, and economic capital too.
Caste restricting economic growth
- There are three ways in which caste restricts the economic transformation in India.
- The divergent outcomes in structural transformation between countries in the global South, particularly India, China and South East Asia, is primarily due to the following three factors.
- Ownership and land inequality related to productivity failure within the farm sector;
- Elite bias in higher education and historical neglect of mass education, and
- Caste-based entry barriers and exclusive networks in the modern sector.
Issues of caste in economy
- Land ownership: India has one of the highest land inequalities in the world today. Britishers colonial intervention legalised a traditional disparity. Moreover, Green Revolution also tightened the castes social control over others in rural India.
- Economic reforms: Those castes that had a stake in agriculture did not benefit from the economic reforms for two reasons — historical neglect of education and the entry barriers erected by the upper castes in modern sectors.
- Neglect in education: The Indian education system has been suffering from an elite bias since colonial times.
- Although the Indian Constitution guaranteed free and compulsory education under its directive principles, it was hardly translated into practice. Instead, attention was given to higher education for the elites.
- Wage differentials: Hence, inequality in access to education got translated into inequality in other economic domains including wage differentials in India.
- Entrepreneurship issues: Caste shaped policy outcomes, including India’s highly unequal land reform and lack of public provision of education and health, which in turn erected barriers to economic diversification.
- Social inequalities: Castes that were already in control of trading and industrial spaces resisted the entry of others. Even those who had economic surplus in farm sectors could not invest in non-farm modern sectors. Social inequalities have mounted barriers for economic transition.
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