03 Aug 2023: UPSC Exam
Comprehensive News Analysis
TABLE OF CONTENTS
A. GS 1 Related
B. GS 2 Related
INTERNATIONAL RELATIONS
1. Jeddah: Hope for peace in Ukraine?
C. GS 3 Related
ECONOMY
1. GST Council sticks to its plan to collect 28% tax on online gaming
D. GS 4 Related
E. Editorials
SCIENCE AND TECHNOLOGY
1. Deep tech startups taking brave risks
F. Prelims Facts
1. India passes law allowing private firms to bid for and mine lithium
G. Tidbits
1. Health Ministry sets deadline for pharma firms’ certification
2. Govt. kicks off contractual dispute settlement scheme
3. One more cheetah dies at Kuno Park, taking the toll to six
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions
A. GS 1 Related
Nothing here for today!!!
B. GS 2 Related
Category: INTERNATIONAL RELATIONS
1. Jeddah: Hope for peace in Ukraine?
Syllabus: Effect of policies and politics of developed and developing countries on India’s interests.
Mains: Developments in the international arena, India's position on global issues, and the
implications of geopolitical events on India's interests.
Prelims: About Ukraine’s 10 point peace plan, China’s 12-point plan and Other initiatives.
Context:
Saudi Arabia will host peace talks on the Russia-Ukraine war, with participants including the US, some
European countries, India, and Brazil. Ukraine seeks support for its 10-point peace plan.
Introduction
● Saudi Arabia is set to host peace talks on the Russia-Ukraine war, inviting countries from various
regions, including the United States, some European countries, India, and Brazil. The talks are
scheduled for August 5 and 6 in Jeddah, with Ukraine seeking support for its 10-point peace plan
proposed last year.
Current Situation of the Conflict
● Russia has shown no signs of retreating from its military operation against Ukraine, which has
been ongoing for 17 months.
● Ukraine has been actively engaging in the conflict and has received substantial military support
from Europe and the U.S., including defence funding.
● UN Secretary-General Antonio Guterres expressed doubt about the possibility of peace
negotiations at this stage, as both sides believe they can achieve victory.
Stances of Ukraine and Russia
● Ukrainian President Volodymyr Zelenskyy maintains that peace negotiations cannot happen
without the withdrawal of Russian troops and that Ukraine should be in control of defining its
own peace terms.
● Russia rejects Ukraine's peace plan, insisting on considering "new realities," including redrawing
borders and retaining the annexed territories.
Previous Peace Negotiations
● Earlier, attempts at temporary ceasefires and humanitarian corridors were made, but direct
negotiations have not occurred since May 2022.
● Various countries and blocs have offered their own roadmaps for peace, but no plan has been
accepted by both parties.
China's Peace Plan and Other Initiatives
● China proposed a 12-point plan for the "political settlement of the Ukraine crisis," which was
seen as skewed in favour of Russia and not accepted by Ukraine.
● African countries proposed a 10-point plan, aiming to recognize the sovereignty of both Russia
and Ukraine and calling for peace negotiations to begin.
● Brazilian President Luiz Inacio Lula da Silva suggested leading a "peace club" of non-involved
and militarily non-aligned countries to facilitate discussions.
Upcoming Talks in Jeddah
● The United Kingdom, EU, South Africa, and Poland have confirmed their attendance at the talks,
with the U.S. National Security Advisor likely to attend.
● Russia, which had rejected Ukraine's peace plan, is not among the invited countries.
● The talks are viewed as an opportunity for constructive third-party mediation and engaging
non-aligned countries from the Global South.
Conclusion
● While the talks in Jeddah may not bring an immediate breakthrough for peace, they present a
chance for constructive dialogue and mediation involving players beyond the West. Saudi
Arabia's role as a mediator becomes significant given its close ties with Moscow and influence in
the OPEC+ oil cartel.
Nut Graf: Peace talks on the Russia-Ukraine war are set to take place in Saudi Arabia, involving key
nations. Despite doubts about an immediate breakthrough, the talks aim to promote mediation efforts
and engage non-aligned countries in seeking a resolution to the conflict.
C. GS 3 Related
Category: ECONOMY
1. GST Council sticks to its plan to collect 28% tax on online gaming
Syllabus: Indian Economy and issues relating to planning, mobilisation of resources, growth,
development and employment.
Mains: Government revenue generation through taxation, impact of tax rates on various sectors, and
the challenges of taxation in the digital economy.
Prelims: Recent changes in tax policies related to online gaming.
Context:
The GST Council has decided to impose a 28% levy on bets in online gaming, casinos, and horse racing,
aiming for implementation from October 1. Some states expressed concerns, but the decision remains
unchanged.
Introduction
● The GST Council has opted to levy a 28% tax on wagers made in online gaming, casinos, and
horse racing.
● The decision was made under the chairmanship of Finance Minister Nirmala Sitharaman.
● The implementation of the levy is scheduled to begin on October 1.
Amendment of GST Law
● The Centre plans to amend the Goods and Services Tax (GST) law during the current session of
Parliament to enable the implementation of the 28% levy.
● Sikkim and Goa expressed dissent over the modalities of the tax for casino users but the Council
decided to proceed with the implementation.
Exemption for Banned Online Gaming
● Tamil Nadu raised concerns about the impact of the levy on the statewide ban on online gaming.
● Ms. Sitharaman assured that the new norms would explicitly state that the tax cannot be levied in
regions where a ban on online gaming is in place.
Mixed Reactions from States
● Delhi sought a fresh review for the online gaming sector.
● However, most other states supported sticking to the Council's previous decision, which was
taken after three years of deliberations.
Critical Clarification on Valuation Rules
● The online gaming industry expressed concerns about the impact on investments and jobs.
● The GST Council clarified that the tax will be levied only on the entry amount, not on any
winnings.
● For instance, if a person buys chips worth ₹1,000, plays a round, and wins ₹300, the tax will be
imposed only on the ₹1,000 entry amount, not on ₹1,300.
Appreciation from Online Gaming Associations
● The E Gaming Federation and Federation of Indian Fantasy Sports welcomed this clarification as
it addresses concerns about "repeat taxation" and provides clarity on tax calculations.
● However, the industry remains anxious about the overall impact of the levy.
Nut Graf: The GST Council, chaired by Finance Minister Nirmala Sitharaman, is set to levy a 28% tax
on online gaming, casinos, and horse racing from October 1. Despite concerns from certain states, the
decision stands, and the industry has received clarification on tax calculations.
D. GS 4 Related
Nothing here for today!!!
E. Editorials
Category: SCIENCE AND TECHNOLOGY
1. Deep tech startups taking brave risks
Syllabus: Science and Technology- Developments and their Applications and Effects in Everyday
Life, Indigenization of Technology and Developing New Technology.
Mains: Role of Startup in the Economy and Making India Atmanirbhar
Context: Deep tech startups in India, their impact on various sectors, and the need for government
support through "Startup India 2.0" to foster further growth and innovation in real sectors.
What is a deep technology startup?
● Deep tech startups go beyond consumer Internet and e-commerce, focusing on areas such as
space and remote sensing, Artificial intelligence and robotics, biotech and pharma, electric
vehicles, drones, defence, telecommunications, semiconductors, and more.
● These startups have a significant impact on various sectors of the economy, leading to
industrialization in newer areas and creating more job opportunities.
● They are also instrumental in bringing scientific and technological discoveries from public sector
labs to the market.
Success Story of Startup in India:
● The Great Indian Startup Boom of the last decade, coupled with the government's Startup India
movement, fostered an environment of entrepreneurship in India.
● The movement has reached beyond metro cities, attracting entrepreneurs from suburban and
rural areas, with about half of the recognized startups coming from Tier 2 and Tier 3 cities.
● Deep tech entrepreneurship has gained momentum, with startups emerging in fields like space
and aviation, biotech, and more.
● Incubation centres like IIT Madras's Research Park, C-CAMP, and the National Chemical
Laboratory's Venture Centre have played a crucial role in supporting deep tech startups.
● Faculty members in academia find it easier to spin out their discoveries through startups founded
by themselves or their alumni, boosting India's historical investments in science and technology.
Way forward for Startup India 2.0:
● The government should prioritize a second phase of entrepreneurship, Startup India 2.0, with a
special emphasis on the real sectors, including deep tech areas.
● Larger risk capital needs to be made available for deep tech startups, and the existing SIDBI
Fund of Funds should prioritize investments in these sectors.
● The industry should contribute by increasing and directing its research funds towards financing
deep tech startups.
● To enable mass procurement of indigenously developed technologies, a concerted push across
various government ministries is essential. Sectors like defence, smart cities, and health have
already started this initiative, but it should be expanded further.
● Industry bodies and stakeholders can aggregate demand in their sectors to encourage the
development and procurement of locally-made technologies.
● Incubators should play a role in co-creating products and solutions, followed by rapid testing,
certification, and support for the procurement of innovative goods at scale.
● Startup India 2.0 should aim to align the efforts of Indian entrepreneurs towards building
domestic industrial and public capabilities, which would contribute to economic growth, job
creation, national security, and overall national capabilities.
Nut Graf: The Great Indian Startup Boom has led to the emergence of deep tech startups in India,
venturing into diverse fields such as space, AI, biotech, and more. These startups have the potential to
revolutionize the economy, create jobs, and commercialize scientific discoveries from public labs. To
further fuel this growth, "Startup India 2.0" should focus on providing increased risk capital and
enabling mass procurement of indigenous technologies.
F. Prelims Facts
1. India passes law allowing private firms to bid for and mine lithium
Syllabus: GS 3- Economy
Prelims: Recent policy changes in the mining sector.
Introduction
● India's Parliament recently passed a law that grants the government the authority to auction and
mine its newly discovered reserves of lithium and other minerals. This move aims to boost the
mining of critical inputs used in electric vehicle (EV) batteries.
Removal of Lithium and Other Minerals from Atomic Minerals List
● The law removes lithium and other minerals from a previous list of atomic minerals.
● The removal allows private companies to participate in the exploration and mining of these
minerals.
● The government stated that this change is expected to significantly increase exploration and
mining activities in the country.
Impact on Lithium Reserves
● Earlier this year, significant lithium reserves were discovered in Jammu and Kashmir.
● The government plans to continue searching for more reserves later in the year.
Inclusion of Other Minerals for Mining and Auction
● The law not only applies to lithium but also includes other minerals like titanium, beryl, niobium,
and zirconium.
● Previously, only state-run companies were allowed to mine these minerals, leading to limited
production.
● The involvement of private firms is seen as a potential 'force multiplier' for increased mining
activities.
G. Tidbits
1. Health Ministry sets deadline for pharma firms’ certification
● The Health Ministry of India aims to improve the quality management of pharmaceutical
manufacturers to foster national and international growth.
● The ministry has set a deadline of six months for small manufacturers and twelve months for
large units to obtain the World Health Organization-Good Manufacturing Practices (WHO-GMP)
certification.
● WHO-GMP certification includes mandatory standards that ensure product quality through
stringent control measures on materials, methods, machines, processes, personnel, and
facility/environment.
● The incorporation of the GMP system in Schedule M of the Drugs and Cosmetics Rules, 1945,
took place in 1988.
● This move is expected to boost the reputation and credibility of Indian pharmaceutical products
in the global market.
● By obtaining WHO-GMP certification, manufacturers can demonstrate compliance with
international quality standards, increasing their chances of export opportunities and enhancing
business growth.
● The certification process will encourage pharmaceutical companies to maintain high standards of
manufacturing and quality control.
● This step aligns with the government's vision to strengthen the healthcare sector and promote
India as a reliable source of quality medicines.
2. Govt. kicks off contractual dispute settlement scheme
● The Centre has introduced a settlement scheme, named 'Vivad se Vishwas II - (Contractual
Disputes),' to address contractual disputes with vendors or suppliers associated with the
government.
● The scheme was announced by Finance Minister Nirmala Sitharaman during the Union Budget
and the guidelines for its operation were indicated by the Department of Expenditure earlier.
● The deadline for firms to submit their claims for consideration under the scheme is October 31.
● To be eligible for settlement, disputes should have secured an arbitral award by January 31,
2023, or a court order by April 30, 2023.
● The scheme is valid for all contractual disputes within the country where either the Government
of India or organisations under its authority are parties involved.
● The maximum settlement amount provided to the contractor for disputes related to court
judgments will be limited to 85% of the net amount granted or confirmed by the court.
● In the case of arbitral awards, the threshold for settlement will be "up to" 65% of the net amount
awarded.
3. One more cheetah dies at Kuno Park, taking the toll to six
● Wildlife authorities confirmed the death of another cheetah at Kuno National Park in Madhya
Pradesh.
● The deceased cheetah, named Dhatri, was sourced from South Africa and is believed to have
contracted a parasitic infection due to repeated scratching and self-wounding.
● This marks the sixth reported death among the 20 cheetahs brought in from Namibia and South
Africa. Previous deaths were likely caused by infections resulting from chafing by radio collars
worn by the cheetahs. The collars made their skin fragile in the humid climate, exposing them to
parasites against which they have no natural immunity.
● These animals might be unable to adapt to local parasites carried by fleas and ticks, leading to
fatal consequences. Future sourcing of animals for the program may need reconsideration due to
the cheetahs' extreme sensitivity to the climate.
● The Environment Ministry and the National Tiger Conservation Authority stated to the Supreme
Court that the cheetah deaths were a result of natural causes, dismissing the likelihood of
accidents.
H. UPSC Prelims Practice Questions
1. With reference to Lithium-ion batteries, which of the following statements is correct?
(a) Lithium-ion batteries have a lower energy density compared to nickel-cadmium batteries.
(b) The major issue with lithium-ion batteries is their short life cycle.
(c) Lithium-ion batteries are fully mature and no longer subject to changes in metals and chemicals.
(d) Lithium-ion batteries require a protection circuit to ensure safe voltage and current levels.
Answer: d
Explanation:
Lithium-ion batteries require a protection circuit to maintain voltage and current within safe limits to
prevent explosions and fires.
2. Consider the following statements, with reference to WHO - Good Manufacturing Practice
(GMP):
1. GMP ensures consistent production and control of products as per quality standards appropriate
to their intended use.
2. Its primary aim is to reduce the risks associated with cross-contamination and false labelling.
3. It emphasises the importance of risk assessment in ensuring safety, quality, and efficacy of
pharmaceutical products.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Answer: c
Explanation:
GMP ensures consistent product quality, reduces risks in pharmaceutical production, and emphasises
risk assessment in WHO guidelines.
3. With reference to the term "Sunrise industry," which of the following statements is correct?
(a) Sunrise industries are established sectors with slow growth rates.
(b) These industries are characterised by a decline in venture capital funding.
(c) They are in the early stages of development and expected to experience rapid growth.
(d) Sunrise industries have matured and no longer attract start-ups.
Answer: c
Explanation:
Sunrise industries show promise of rapid growth with high start-up activity and venture capital funding.
4. Consider the following statements, with reference to the Fund of Funds for Startups (FFS)
Scheme:
1. FFS directly invests in startups to enable access to domestic capital.
2. State Bank of India (SBI) is responsible for disbursing the capital under FFS.
3. AIFs supported under FFS must invest at least half the amount committed under FFS in startups.
How many of the statements given above are incorrect?
(a) Only one
(b) Only two
(c) All three
(d) None
Answer: c
Explanation:
It provides a boost to startups through SEBI-registered AIFs and not by direct investment. SIDBI
oversees disbursals, and AIFs under FFS must invest at least 2 times the committed amount.
5. Consider the following statements, with reference to the "Vivad se Vishwas-2 (Contractual
Disputes)" scheme:
1. The scheme aims to resolve contractual disputes involving the government and government
undertakings.
2. It covers disputes up to 30 September 2022.
3. The settlement amount offered under the scheme is up to 85% of the net amount awarded for
court awards passed on or before 30 April 2023.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Answer: c
Explanation:
All three statements are correct.
I. UPSC Mains Practice Questions
1. “The Jeddah Meet to broker peace between Russia and Ukraine holds multiple potentialities”.
Comment. (150 words, 10 marks) [GS-2; International Relations]
2. “The future of Indian Startups lies in Deep Tech”. Elucidate. (150 words, 10 marks) [GS-3;
Economy]
