3.

ECONOMY
3.1. CONTRIBUTIONS OF M S SWAMINATHAN
Why in the News?
Mankombu Sambasivan Swaminathan, popularly known as
M.S. Swaminathan, the legendary agricultural scientist passed
away recently.
About M.S. Swaminathan
• A plant geneticist, he is regarded as the father and key
architect of India’s green revolution and is also often
referred to as the “Farmers’ Scientist”.
• He was the recipient of the first World Food Prize in 1987
for his leadership in India’s Green Revolution.
• He is also a recipient of Padma Vibhushan, the Ramon
Magsaysay Award and several other national and
international recognitions.
Scientific contributions of M S Swaminathan
• Genetic Research: He worked on breeding programs to
develop crop varieties that were not only high yielding but also resistant to pests and diseases.
o His efforts led to the creation of several new crop varieties that were better suited to the Indian climate and
agricultural conditions.
• Rice varieties: At the Central Rice Research Institute (CRRI), Cuttack, Swaminathan worked in the indica–japonica rice
hybridization programme to develop fertilizer-responsive, high-yielding and short-stature varieties of rice to replace
locally available, tall and low-yielding varieties.
o The work resulted in varieties like ADT27, and RASI. Varieties developed under this project directly contributed
to the Green Revolution in India.
o Under his guidance, the scientists genetically engineered the salinity-tolerance genes of a mangrove species
(Avicennia marina) into the cultivated rice plant.
o He initiated a rice breeding programme to transfer the non-lodging plant type to basmati strains, leading to
release of Pusa Basmati.
• Wheat varieties: He then shifted his focus to wheat from rice. During that time, all local wheat varieties were tall,
and these ‘lodged’ (i.e. fell flat on the ground) when their earheads were full of heavy grains.
o None of the varieties of the cultivated wheat had the ‘genes’ for dwarfing the height of the plants without
reducing yield.
o New Mexican wheat dwarf variety containing Norin Genes were developed by Norman Borlaug, an American
agronomist, and scientists at the International Rice Research Institute.
o He identified the potential of Mexican wheat dwarfs which are dwarf, resistant to diseases and also high-yielding.
o With help of Borlaug and additional research on these wheat varieties, he developed ‘Sonalika’ and ‘Kalyan Sona’
varieties.
• Potato hybrid: He developed a frost-resistant potato variety called ‘Alaska Frostless’.
• Participatory Breeding: He also fostered ‘participatory breeding’ in which farmers are assisted to develop new locally
adapted varieties.
Contribution in Economic Ecology
He has been described by the United Nations Environment Programme as “the Father of Economic Ecology” because of
his leadership of the ever-green revolution movement in agriculture.
• Evergreen Revolution: He concentrated his efforts on an “evergreen” revolution, which he defined as “improvement
of productivity in perpetuity without ecological harm”.
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• Approach: It is based on appropriate blend of different approaches such as organic farming, green agriculture, eco-
agriculture and agriculture based on effective micro-organisms.
o He advocated for a “do-ecology” approach to ensure that ecologically sustainable farming technologies become
available.
o He proposed idea of 4Cs - Conservation, Cultivation, Consumption and Commercialization for reconciling
conservation and development in the sphere of farming activities.
• Technological adoption: He advocated for harnessing the best in frontier technologies and blending them with our
rich heritage of ecological prudence.
o He promoted sustainable agriculture and rural development using innovative paradigms such as ecotechnology-
based biovillages and modern information and communication-based Village Knowledge Centres (VKCs).
Policy and Institutional Contributions of M S Swaminathan & its relevance till today
• National Commission on Farmers (NCF): NCF was formed under the chairmanship of Swaminathan.
o One of its major recommendations is that Minimum Support Price (MSP) should be at least 50% more than the
weighted average cost of production.
o It also recommended formation of VKCs, conservation farming, soil testing laboratories, expansion of credit
system and public distribution system.
• M.S. Swaminathan Research Foundation (MSSRF): He used the funds he received from World Food Prize to open a
research center, MSSRF, in Chennai, India, in 1988.
• Protection of plant varieties: He played a pivotal role in developing the ‘Protection of Plant Varieties and Farmers’
Right Act 2001’ as India’s response to its obligation to provide sui generis protection to plant varieties under TRIPS.
• Food Security: He suggested two steps for integrating nutrition in farming:
o A genetic garden of biofortified plants to introduce farmers to plants which can provide them with the needed
micronutrients and proteins.
o Community hunger fighters, well versed with the malnutrition problems of the area as well as the methods to
overcome them.
• Disaster Management: He advocated for adoption of concepts of "drought code", “flood code” and "good weather
code", indicating the proactive measures that need to be taken.
• Research institutions: He helped in establishment of several institutions which include:
o International Crop Research Institute for the Semi-Arid Tropics (ICRISAT) at Patancheru, near Hyderabad
o International Board for Plant Genetic Resources (IBPGR) in Rome (now known as Biodiversity International)
o International Council for Research on Agro-Forestry (ICRAF) in Nairobi
o International Centre for Genetic Engineering and Biotechnology (ICGEB) in New Delhi
• Five-year plans: He played a key role in shaping the Sixth Five Year Plan (1980–1985) where, for the first time, he
introduced two new chapters, one on ‘Women and development’ and another on ‘Environment and development’.
• UN Millenium Project: He co-chaired the UN Millennium Project, which in early 2005 developed clear targets and a
practical plan for reducing poverty, hunger, disease, illiteracy, environmental degradation, and discrimination against
women, to be achieved over the following decade.
Conclusion
MS Swaminathan championed the cause of farmers, ensuring that the fruits of scientific innovation reach the roots of our
agricultural expanse, fostering growth, sustainability, and prosperity for generations to come. His ideas, research and
vision for Indian agriculture still guides the policymakers to create a resilient, self-sufficient, and scientific agriculture
ecosystem.

3.2. INDIAN COUNCIL OF AGRICULTURAL RESEARCH (ICAR)

Why in the News?
Recently, International Research Conference on ‘From research to impact: Towards Just and Resilient Agri-Food
Systems’, hosted by the Indian Council of Agricultural Research (ICAR) and Consultative Group on International
Agricultural Research (CGIAR) GENDER Impact Platform was inaugurated.

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Role of ICAR towards better and
resilient agri-food systems
• Crop varieties: Played a
pioneering role in ushering
Green Revolution through
developing new high yielding
varieties of different crops:
o Rice varieties like Jaya
(first rice variety released
in India), Swarna, Pusa
Basmati 1121, (world’s
longest basmati rice),
Wheat varieties like HD
2967, DBW 187, HD 3086
etc, Fruit varieties like
Amrapali, Pomegranate
Bhagwa etc.
• Seed programs: ICAR
deposited seeds in the Svalbard Global Seed Vault as safety duplicates.
• Genomics: Helped establish the National Gene Bank in New Delhi, (second largest gene bank in the world), having
more than 450 thousand indigenous and exotic accessions of crop species and a large cryopreservation bank.
o ICAR partnered in the global genome sequencing of rice, wheat, tomato and potato and independently
sequenced the genome of pigeonpea, jute, mango and fishes.
• Integrated Farming: Promotion of Integrated Farming System with its added advantage of waste recycling, climate
resilience and risk minimization.
o Developed models of agro-forestry to promote agri-horti, agri-silvi and silvipastoral systems for raising farmers’
income.
o Improving productivity of indigenous breeds of cattle through field progeny testing and selection. Indigenous
breeds include Sahiwal cow, Tharparkar bull, Gir cattle, Banni buffalo and Kankrej cow.
o Improved poultry farming with increasing productivity of desi birds such as CARI Nirbheek, Kadaknath,
Ankaleshwar etc.
• Health: Vaccines and diagnostics developed by ICAR contributed to improved health management and enhanced
livestock productivity.
o Animal diseases namely Rinderpest, contagious bovine pleura-pneumonia, African horse sickness and Dourine
eradicated from the country.
• Climate Smart Farming: It is being promoted through rainwater harvesting, community ponds, climate resilient
varieties such as Rati ML 365, Pigeonpea BRG 1, BRG 2 and BRG 5, and hydroponic cropping.
• Bio-technology solutions: ICAR undertook crop biofortification to tackle malnutrition. Biofortified crops include
Solapur Lal (first biofortified pomegranate variety), Groundnut Girnar 4 and 5, Pusa Double Zero Mustard 31 (first
canola quality Indian mustard variety) etc.
o Developed Pusa decomposer for in situ and ex situ crop residue decomposition to mitigate residue burning
problems.
o India developed first cloned buffalo in the world and Pratham, the world’s first in-vitro fertilized buffalo calf.
• Blue Revolution: Promoted cage culture – a low volume high density fish farming system - which raised per unit
productivity.
o ICAR developed Ecosystem Health Index (EHI) to monitor coastal ecosystem, identified biofence to mitigate
effects of ocean pollution and intensified identification of invasive alien species.
o ICAR is working towards development of coldwater fisheries sector in all the Himalayan states.
• Agricultural mechanization: Developed technologies in agricultural engineering including millet mill, drone remote
sensing, mulch laying machine etc.

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 Consultative Group on International Agricultural Research (CGIAR)
• Established in 1971, it is a strategic partnership of donors that support 15
international research centres, working in collaboration with government,
civil society organizations and private businesses.
• CGIAR is a global research partnership for a food-secure future dedicated to
transforming food, land, and water systems in a climate crisis.
• It focuses on five impact areas (see image).

3.3. NATIONAL TURMERIC BOARD

Why in the News?
Government of India has notified establishment of a National Turmeric Board in the state of Telangana.
About National Turmeric Board
• Key Objectives of the board
o Create demand in domestic and international markets through promoting new product and value addition.
o Create and improve infrastructure and logistics for exports of turmeric and turmeric products.
o Ensure quality and safety standards across the supply chain of turmeric.
o Document the traditional knowledge related to use of turmeric and its applications.
o Encourage studies, clinical trials and research on medicinal, health and wellness enhancing properties of
turmeric.
• The Board is to consist of
o A Chairperson, selected by the Central Government
o Four members to represent the Ministries of Commerce, Agriculture, Ayush, and Pharmaceuticals
o Eight other members related to Turmeric value chain.
o The proposed board is to work under the aegis of Ministry of Commerce
Turmeric (Curcuma Longa) in India
• India is the largest producer, consumer and exporter of turmeric in the world.
• Key Features:
o Tropical plant belonging to the ginger family (Zingiberaceae)
o Temperature range: 20 to 35 °C
o Rainfall: 1500 mm or more
o Soil: Well drained red loamy soil
o Duration: Rhizomes are harvested 9 to 10 months after planting
o It contains a natural active ingredient called “Curcumin” which gives the turmeric its colour and has antioxidant
and anti-inflammatory properties.
• Cultivation: Turmeric is cultivated in an area of 3.24 lakh ha in India with a production of 11.61 lakh tonnes which
amounts to over 75% of global turmeric production
o More than 30 varieties of Turmeric are grown in India and the largest Turmeric producing states are
Maharashtra, Telangana, Karnataka and Tamil Nadu.
• Bangladesh, UAE, USA and Malaysia are the main export markets of Indian turmeric whose value if expected to
reach $ 1 Billion by 2030.
Conclusion
The establishment of a separate board not only adheres to the decade long demand of the Turmeric farmers in India, but
also has opened the avenues for India to get a strong hold of the turmeric exports in the international market
42 www.visionias.in ©Vision IAS
3.4. NOBEL PRIZES 2023
Why in the News?
Nobel Prizes for 2023 were announced
recently.
About Nobel Prize
• The Nobel Prize is an international award
administered by the Nobel Foundation in
Stockholm, Sweden, and based on the last
will of Alfred Nobel (in 1895).
○ Alfred Nobel, a Swedish inventor, and
entrepreneur, is popularly known for
inventing dynamite, blasting cap, and
smokeless gunpowder.
• Categories: Instituted in 1901, the prize is
awarded annually from the bulk of fortune
left by Alfred Nobel in five categories:
Physics, Chemistry, Physiology or
Medicine, Literature and Peace -
conferred to people for the greatest
benefit to humankind in preceding year.
○ The sixth category, the Nobel Prize in
Economic Sciences, was instituted in
1968 by the Royal Bank of Sweden and
was first awarded in 1969.
• What do the winners receive?:
○ A Nobel diploma, each of which is a
unique work of art;
○ A Nobel medal;
○ A cash prize of 10 million Swedish
kronor. (They have to deliver a lecture
to receive the money).
• Who awards the prizes?
○ The Royal Swedish Academy of Sciences awards the Nobel Prize in Physics, Chemistry and Economics.
○ The Nobel Prize in Literature is awarded by the Swedish Academy, Stockholm, Sweden.
○ The Nobel Assembly at Karolinska Institute, Stockholm, Sweden awards the Nobel Prize in Medicine
(Physiology).
○ The Norwegian Nobel Committee is responsible for the selection of eligible candidates and the choice of the
Nobel Peace Prize laureates.
• Prize winners are called laureates, to signify the laurel wreath given to victors of contests in ancient Greece. More
than one, but no more than three, people can win each prize.
• The Nobel statutes prohibit the judges from discussing their deliberations for 50 years.
Kindly note that, Nobel Prize in Chemistry, Physics and Medicine have been covered under Science and Technology
section. Nobel Prize in Literature and Nobel Peace Prize are covered under Culture and Social Issues sections
respectively.
3.4.1. NOBEL PRIZE IN ECONOMICS: WOMEN IN LABOUR FORCE
Why in the News?
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2023 has been awarded to Claudia Goldin
for advancing understanding of women’s labour market outcomes.
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More on News
• Over the past century, the proportion of women in paid work
has tripled in many high-income countries. This is one of the
biggest societal and economic changes in the labour market in
modern times, but significant gender differences remain.
• Claudia Goldin’s research has given us new and often
surprising insights into women’s historical and contemporary
roles in the labour market.
Status of Gender Differences
• Global Status: Globally, around 50% women are in paid
employment, while the equivalent figure for men is 80%.
o In South Asia, only around 25% of women participate in
labour market.
• Status in India: In India, the labour force participation rate
among females is 24% and among males is 73.6% for 2022.
o Vulnerable employment (forms of self-employment associated with lower labour income and low job security)
among women is 77.3% and among men is 72.9% in India for 2021.
• U-shaped relationship: There is a posited U-shaped relationship between development (proxied by GDP per capita)
and female labour force participation.
o Women’s labour force participation is high for the poorest countries (higher share of agriculture), lower for
middle income countries, and then rises again among high income countries.
• Earnings Gap: When women work, they usually earn less. In India, the gender earnings gap is most skewed amongst
self-employed workers.
o In India, the earnings gap has reduced, and women earned 76% of what men did in 2017, compared to 70% in
2004. Since then, the gap has remained constant till 2021-22.
• Opportunities: Women are less likely to
work in formal employment and have
fewer opportunities for business expansion
or career progression.
Factors influencing female labour force
participation
• U-shaped curve: Previously, it was
concluded that there was a clear positive
association between economic growth and
the number of women in paid employment.
o Goldin’s U-curve demonstrated that
there is no historically consistent
association between women’s
participation in the labour market and
economic growth.
• Social norms: Legislation or customs known
as “marriage bars” often prevented
married women from continuing their employment despite increased demand for labour.
o Also, women often left the workforce for an extended period after marriage. This influenced their decisions
regarding education choices which determined job opportunities they could have at a later stage in life.
• Technological innovations: Innovation of the contraceptive pill resulted in women delaying marriage and childbirth,
thus increasing their education and career prospects.
o However, this did not mean that the earnings gap between women and men completely disappeared, though
it has become significantly smaller since the 1970s.
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• Monthly pay system: Despite economic growth, increasing education levels among women and a doubling in the
proportion of women working for pay, the earnings gap essentially stayed the same between 1930 and 1980.
o This was partially due to abandoning of piecework contracts (paid in relation to their productivity) and adoption
of modern pay systems (monthly wages).
• Parenthood effect: Women taking greater responsibility than men for childcare (care economy) makes their career
progression and earnings increases more difficult.
o Many sectors of contemporary labour markets expect employees to be constantly available and flexible in the
face of employer’s demands, which is difficult after childbirth.
Way forward- Reducing gender differences in the workforce Measures taken for reducing gender gap in India
• Assessment: Policymakers who want to affect these • Code on Social Security 2020: Enhancement in paid
differences must first understand why they exist. maternity leave to 26 weeks, mandatory crèche
• Collective action: Collective, coordinated and bold action facility in the establishments having 50 or more
by private- and public-sector leaders will be instrumental employees, permitting women workers in the night
in accelerating progress towards gender parity. shifts with adequate safety measures, etc.
• Code on Occupational Safety, Health and Working
• Investment: Investments in providing women equal access
Conditions (OSH), 2020: Employment of women in
to information, education and healthcare reaps large the aboveground mines including opencast workings
dividend in terms of gender parity. and in below ground working in technical, supervisory
o Brazil introduced the Emergency Aid cash transfer and managerial work where continuous presence may
program early in the pandemic, which provided double not be required.
the benefits to women-led households, decreasing • Code on Wages 2019: No discrimination in an
poverty rate. establishment among employees on the ground of
• Congenial environment: Reforms to taxation, public gender.
spending, financial infrastructure and regulations, as well • Training and skill development: Training to women
as labour markets that removes institutional barriers. through a network of Women Industrial Training
institutes, National Vocational Training Institutes and
o In Norway, the expansion of universal childcare
Regional Vocational Training Institutes.
increased the likelihood of mothers’ employment by
32 percentage points.
• Tackling biases and social norms: Gender-based discrimination in social institutions costs the world economy $6
trillion according to OECD.
o Such costs can be reduced through social and legal actions such as curbing underage marriage, criminalizing
domestic violence, and increasing the number of elected female officials.
• Access to microfinance: An International Growth Centre (IGC) project in India found that greater access to
microfinance loans led to a significant increase in female labour force participation – with the effect driven by self-
employment and not by salaried jobs.

3.5. NEWS IN SHORTS

3.5.1. PERIODIC LABOUR FORCE SURVEY working or seeking or available for work) in the
population.
(PLFS) REPORT 2022-2023
o Worker Population Ratio (WPR): Percentage of
• Launched by National Sample Survey Organization employed persons in the population.
(NSSO) in 2017, the key objective of PLFS is to estimate o Unemployment Rate (UR): Percentage of persons
the key employment and unemployment indicators unemployed among the persons in the labour
(viz. LFPR, WPR, UR) annually: force.
o in the short time interval of three months for the o Activity Status: It is determined on the basis of the
urban areas only in ‘Current Weekly Status’ (CWS) activities pursued by the person during the
and specified reference period (preceding the date of
o in both ‘Usual Status’ and CWS in both rural and survey).
urban areas annually. ✓ Usual Status: Reference period is 365 days.
• Key Indicators used in PLFS: ✓ Current Weekly Status (CWS): reference
o Labour Force Participation Rate (LFPR): period is 7 days.
Percentage of persons in the labour force (i.e.
45 www.visionias.in ©Vision IAS
 3.5.3. TRADE AND DEVELOPMENT
REPORT 2023
• United Nations Conference on Trade and
Development (UNCTAD) released Trade and
3.5.2. BOND YIELD Development Report 2023.
• Key Findings of the Report:
• Recently, Reserve Bank of India (RBI) decision for Open
o The report discusses the current state of the
Market Operation (OMO) sale of government
securities (G-Sec) triggered a spike in bond yields to
global economy and highlights several
their highest level in FY 2023-24. challenges.
o RBI uses OMOs in order to adjust the rupee o Global Economic Outlook
liquidity conditions in the market on a durable ✓ The world economic growth is projected to
basis. be 2.4% in 2023.
• A bond is a debt instrument in which an investor loans ✓ The entire global economy, except East and
money to an entity (typically corporate or government) Central Asia, has slowed since 2022.
which borrows the funds for a defined period of time ✓ Worrying trends are poorer nations’
at a variable or fixed interest rate. indebtedness, slower growth in major
o Bonds are used by companies, municipalities, regions, and inadequate multilateral
states and sovereign governments to raise money response.
to finance a variety of projects and activities. o India's Economic Projections
o A G-Sec is a tradeable instrument issued by the ✓ India’s economic growth is forecasted to be
Central Government or the State Governments. It 6.6% (in 2023) and 6.2% (in 2024).
acknowledges the Government’s debt obligation. ✓ In India, the external sector alongside the
o Such securities are short term (usually called private and government sectors has
treasury bills, with original maturities of less than contributed to domestic growth.
one year) or long term (usually called Government ✓ Concerns highlighted for India are the
bonds or dated securities with original maturity of unemployment rate of 8.5% in June 2023,
one year or more).
and rising inequality.
• A bond's yield is the return an investor expects to
• Key recommendations
receive each year over its term to maturity.
o For the investor, the bond yield is a summary of o Financial Sustainability: Central banks should
the overall return that accounts for the remaining strengthen international coordination with a
interest payments and principal they will receive, focus on long-term financial sustainability for the
relative to the price of the bond. private and public sectors.
o The yield is also commonly referred to as an o Social Protection: Increase real wages and
interest rate, or the “cost of borrowing” to an strengthen comprehensive social protection
issuer. programs.
• If market interest rate levels rise, the price of a bond o Energy Transition Agreements: Agreements
falls. Conversely, if interest rates or market yields within the G20, the WTO, the IMF, and the World
decline, the price of the bond rises. Bank should be made to facilitate the energy
• The yield of a bond is inversely related to its price. transition, technology transfer, and reliable
When the price of a bond falls, yields rise. access to finance for climate adaptation.

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 o Trade regulation: Internationally, a systemic • The PCA Framework for non-banking financial
approach to regulating commodity and food companies (NBFCs) was introduced on December 14,
trading needs to be developed. 2021.
o Debt Servicing and Financial Architecture • The Framework has since been reviewed and it has
Reforms: Reforms are needed in the rules and been decided to extend the same to Government
practices of the global financial architecture to NBFCs (except those in Base Layer) with effect from
address the crushing burden of debt servicing. October 1, 2024, based on the audited financials of the
NBFC as on March 31, 2024, or thereafter.
o The base layer is categorised as those Non-
deposit-taking NBFCs, below the asset size of
₹1000.
o The other 3 layers are the Middle Layer, Upper
Layer and Top Layer.
o Some of the major government NBFCs include PFC,
REC, IRFC and IFCI.
• PCA Framework was introduced for NBFCs as these
lenders have grown in size and become systemically
important due to interconnectedness with other
segments of the financial system.

3.5.5. RESERVE BANK OF INDIA

(TREATMENT OF WILFUL DEFAULTERS
AND LARGE DEFAULTERS) DIRECTIONS,
2023 RELEASED
• With these directions, RBI has expanded scope for
regulated entities that can classify borrowers as wilful
defaulters, broadened definition of wilful default, and
refined identification process.
• Key Highlights of Directions
3.5.4. PROMPT CORRECTIVE ACTION
(PCA) FRAMEWORK Applicability • All regulated entities, including banks,
NBFCs, Co-operative Banks, Regional Rural
• RBI to extend PCA supervisory norms to Govt-owned Banks, Local Area Banks, and All India
NBFCs from October 2024. Financial Institution (AIFI) including NABARD,
• The objective of the PCA framework is to enable SIDBI, EXIM Bank, NHB and NaBFID.
supervisory intervention at the appropriate time and Definition • A wilful defaulter is a borrower or a
requires the supervised entities to initiate and guarantor who has defaulted without being
constrained to do and the outstanding
implement remedial measures in a timely manner so
amount is Rs 25 lakh and above.
as to restore their financial health. • A large defaulter is one whose amount in
default is Rs 1 crore and above.
Review and • Within six months of an account being
finalisation classified as a non-performing asset (NPA).
on wilful • Earlier, there was no specific timeline.
default
Identification • Identification Committee: Wilful defaulter
Process classification after examining evidence from
an identification committee, which will then
issue a show-cause notice.
• Review Committee: Considers the proposal
of the Identification Committee for
classification as a wilful defaulter.
Other • No additional credit facility can be granted
provisions to a wilful defaulter and it remains in effect
for up to 1 year after removal from List of
Wilful Defaulters.
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 • Lender will be able to proceed against ○ Function: Making recommendations on issues
guarantor even without exhausting the related to implementation of GST
remedies against principal debtor. ○ Decision-making through voting: Decision
requires a 3/4th majority of members present and
3.5.6. CARD-ON-FILE TOKENIZATION
voting.
(COFT) ✓ Centre’s share is 33% of votes cast.
• RBI has introduced new channels for CoFT.
About GST Appellate Tribunals (GSTAT)
• The tokenization process is used to replace card
details by a unique token or code. • GSTAT is a statutory body under the Central GST Act,
• It allows secure online purchases without exposing 2017.
sensitive details like card number, card verification • It is the forum of second appeal in GST laws and the
value (CVV), etc. first common forum of dispute resolution between
• It has been implemented since 2022 and at present, a Centre and States.
CoFT token can only be created through merchant’s ○ It is mandated to hear appeals against orders
application or webpage. passed by Appellate Authority or Revisional
• It is now proposed to introduce CoF token directly at Authority.
the issuer bank level.
• The new step aims to eliminate the duplication of 3.5.8. NATIONAL INVESTMENT AND
tokenization process at each app along with increased INFRASTRUCTURE FUND (NIIF)
transaction security, resulting in reduced card-data- • NIIF has entered into a collaboration with Japan Bank
related frauds. for International Cooperation (JBIC) to unveil a $600
3.5.7. 52 ND GOODS AND SERVICES TAX million India-Japan Fund.
COUNCIL (GST) COUNCIL MEETING HELD o The fund will have JBIC and Government of India as
anchor investors.
• Key recommendation • About NIIF
○ District Mineral Foundations Trusts are o Anchored by the Government of India, it is a
Governmental Authorities and eligible for the collaborative investment platform for
same exemptions from GST. international and Indian investors.
○ Reduction of GST rate from 28% to 5%, on o Three funds have been established by the
molasses. Government under the NIIF platform: Master
✓ It will facilitate faster payments to sugarcane Fund, Fund of Funds and Strategic Opportunities
farmers from sugar mills. Fund.
○ Keep Extra Neutral Alcohol (ENA) used for o The objective of NIIF is to invest largely in equity
manufacture of alcoholic liquor for human and equity-linked instruments.
consumption outside GST.
✓ ENA is highly concentrated alcohol and key 3.5.9. IRDAI ISSUED BIMA VAHAK
ingredient for pharmaceuticals, perfumes, GUIDELINES (BHG)
toiletries etc.
○ Qualification of members of GSTAT: Alignment of • The guidelines aim to establish women centric
provisions of the CGST Act, 2017 with Tribunal distribution channel that focuses on enhancing
Reforms Act, 2021 to ensure insurance inclusion and awareness in every village.
✓ Minimum age of President and Member o It also aims to improve the accessibility and
should be 50 years and their tenure should be availability of insurance in every nook and corner
upto age of 70 years and 67 years of the country.
respectively. • The scope of work of Bima Vahaks, besides creating
• About GST Council awareness of insurance in villages, is likely to range
○ It is a constitutional body under Article 279A (101 from filling proposal forms, facilitating KYC process for
Constitution Amendment Act, 2016). customers, issuance of insurance policies, etc.
○ Chairperson: Union Finance Minister • It is a part of IRDAI's strategy to achieve its ‘Insurance
○ Members: for All goal’.
✓ Union Minister of State, in-charge of Revenue
✓ Minister in charge of finance or taxation or any
other Minister nominated by each State
Government
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3.5.10. CRITICAL AND STRATEGIC • ISAC recognizes and reward cities, projects and
MINERALS innovative ideas that are promoting sustainable
development across 100 smart cities, and stimulating
• Union Cabinet approved Royalty Rates for Mining inclusive, equitable, healthy and collaborative cities.
three Critical and Strategic Minerals- Lithium, o ISAC has witnessed three editions in 2018, 2019
Niobium, and Rare Earth Elements. and 2020.
• Critical minerals are those minerals that are essential • Top 3 Smart City: Indore, Surat and Agra
for economic development and national security, • Top 3 in State: Madhya Pradesh, Tamil Nadu, Rajasthan
judged by two parameters: economic importance, and • Top UT: Chandigarh
supply risk.
• Such royalty rate approval will enable Central 3.5.12. GOA ROADMAP FOR TOURISM
Government to auction blocks for these critical • G20’s Delhi Declaration underlined the significance of
minerals for the first time in the country. ‘Goa Roadmap for Tourism’ as a vehicle to achieve
o Mineral Royalty is economic rent due to the SDGs.
sovereign owner (government) in exchange for o It identifies five priority areas in Tourism - Green
the right to extract mineral substances. Tourism, Digitalization, Skills, Tourism MSMEs,
o Second Schedule of Mines and Minerals and Destination Management.
(Development and Regulation) Act (MMDRA), • Delhi Declaration also noted the launch of ‘Travel for
1957 deals with the royalty rates of minerals. LiFE’ initiative, which nudges tourists and tourist
• If not specified, the royalty rate for minerals is 12% of businesses to take simple actions having tremendous
the Average Sale Price (ASP). Now, approved royalty significance for environment protection and climate
rates for lithium, Niobium, and REE are 3%, 3 %, and 1 action.
%, respectively. • Further, Ministry of Tourism and UN World Tourism
• Presently, India’s mineral royalty rates are among the Organization has launched G20 Tourism and SDG
highest in the world, thus impacting the Dashboard which will serve as a global repository,
competitiveness of sector and putting the economic showcasing best practices and case studies of
burden on mining companies. sustainable tourism practices and policies from G20
• Significance nations.
o Aligning rates with global practices will boost
mining sector investment. 3.5.13. SCHEME FOR REMISSION OF
o Lower royalty rates would encourage future DUTIES AND TAXES ON EXPORTED
mineral exploration in India. PRODUCTS (RODTEP)
o Assist in reducing import dependency, advancing • Ministry of Commerce & Industry announced
self-reliance efforts, and minimizing supply chain extension of RoDTEP support till 30th June 2024.
disruptions.
• About Scheme:
o Introduced as a duty remission scheme on
exports.
o It provides a mechanism for reimbursement of
taxes, duties, and levies, which are currently not
being refunded under any other mechanism.
o Basis: Globally accepted principle that taxes and
duties should not be exported, and taxes and
levies borne on exported products should be
either exempted or remitted to exporters.
o It is WTO-compatible and is being implemented in
an end-to-end IT environment.

3.5.14. AUTOMATIC ‘STATUS HOLDER’

3.5.11. INDIA SMART CITIES AWARDS CERTIFICATES
CONTEST (ISCAC) 2022
• Ministry of Commerce & Industry unveils system-based
• ISAC is organized under Smart Cities Mission by automatic ‘Status Holder’ certificates under Foreign
Ministry of Housing and Urban Affairs. Trade Policy 2023.

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• Now certificate will be provided by the IT system o Status of Innovation in India:
based on available Directorate General of Commercial ✓ India leads the lower middle-income group
Intelligence and Statistics merchandise export and is stable.
electronic data and other risk parameters. ✓ India continues as record holders by being
o Status Holders are business leaders who have innovation overperformers for a 13th
excelled in international trade and have consecutive year.
successfully contributed to the country’s foreign ✓ The ascent of India in terms of publication
trade. output (ranking 4th in 2022), overtaking the
UK (5th) and Germany (3rd).
✓ India has 4 technology clusters among the top
100 clusters: Bengaluru, Delhi, Chennai and
Mumbai.

3.5.15. PROJECT MARIANA

• Project Mariana was developed jointly by three BIS
Innovation Hub centres (the Swiss, Singapore and
Eurosystem Hub Centres) together with Bank of
France, Monetary Authority of Singapore and Swiss
National Bank.
• The project tested the cross-border trading and
settlement of wholesale central bank digital
currencies (wCBDCs) between financial institutions,
using new decentralised finance (DeFi) technology
concepts on a public blockchain.
o Wholesale CBDC refers to the settlement of
interbank transfers and related wholesale
transactions in central bank reserves.

3.5.16. GLOBAL INNOVATION INDEX (GII)

2023
• India maintains 40th Rank in The Global Innovation
Index (GII) 2023, released by World Intellectual
Property Organization (WIPO).
• The GII is a reliable tool for governments across the
world to assess the innovation-led social and
economic changes in their respective countries.
o It is co-published annually by Cornell University, 3.5.17. MULTILATERAL DEVELOPMENT
INSEAD Business School, and WIPO. BANKS (MDBS)
o Criteria to measure innovation: Covers
institutions, human capital and research, • G20 Expert Group released a Report titled ‘Bigger,
infrastructure, credit, investment, linkages, Bolder, Better’ Multilateral Development Banks
creation, absorption and diffusion of knowledge, (MDBs).
and creative outputs. • The report was presented at the fourth G20 finance
• Key Findings: ministers and central bank governors meeting in
o For a 13th consecutive year, Switzerland ranks Marrakech.
first in the GII. • The independent expert group submitted volume two
o Strong technological progress and Technology of a series of reports,
adoption like electric vehicle and automation. • This report focuses on reforms of MDBs on the theme
of Bigger, Bolder, Better MDBs.
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 o Earlier submitted volume one, focused on tripling o Bolder MDBs:
the annual lending levels of MDBs to $390 billion ✓ Adopt cascade principle: refers to public
by 2030. sector banks refraining from financing what
• MDBs are a financial institution established by can be done by the private sector.
multiple member countries and governed by ✓ Empowering the Multilateral Investment
international law. e.g., Bretton Wood institutions, Guarantee Agency (MIGA).
Asian Development Bank, etc.
• Recommendations 3.5.18. EMERGING-MARKET BOND INDEX
o Better MDBs: (EMBI)
✓ Address the largest external financing gaps in
• JPMorgan to add Indian government bonds to its
low- and middle-income countries
benchmark EMBI from June 2024.
✓ Focus on non-concessional lending in climate
• EMBI is a benchmark index for measuring total return
action.
performance of international government and
✓ Scaling up national transformations by
corporate bonds that meet specific liquidity and
integrating with regional programs.
structural requirements.
o Bigger MDBs:
• Inclusion in EMBI could potentially:
✓ Catalyze private finance by shifting culture
o Lower the country’s sovereign borrowing costs.
from risk avoidance to informed risk-taking.
o Help finance the current account deficit.
✓ More donor pledges for the International
o Free up liquidity for domestic financiers to deploy
Development Association.
in more productive assets.
✓ Establihd a Global Challenges Funding
o Increase demand for the rupee and support its
Mechanism (GCFM) for investors seeking
value.
financial return while also supporting SDGs,

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