Transcription
Hello and welcome to ANA Academy, a one-stop destination for the English medium civil services aspirants. A very good afternoon and welcome to the most comprehensive Hindu analysis on YouTube.
Let's start our discussion by first looking at the topics that we are going to discuss from the Delhi edition of the Hindu. I have chosen 11 important articles. The first six topics are important for both prelims and mains. And we have five small topics which are extremely important for the prelims exam. So let's cover them in a complete detailed and analytical manner so that you don't have to go back and read the paper again.
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So, let's get started and look at the first topic. On page number eight, the Hindu carries a column that analyzes the state of the Indian economy. See, recently a couple of weeks ago, the National Statistics Office, which is under the Ministry of Statistics and Program Implementation, it published the GDP numbers for India, the growth numbers. This was for the second quarter of the current fiscal year and this GDP data looks quite promising. India has registered 8.2% GDP growth in quarter 2, which is a significant jump compared to quarter two of the previous fiscal. In the last fiscal, in second quarter, our growth was around 5.6%. So from 5.6 to 8.2 in a given year in that particular period, the jump that we have seen in India's GDP growth is very significant because across the world, you see a stagnant situation with many, many countries facing a lot of volatility, many countries facing a deceleration as well in their growth prospects. But India remains the bright spot and the growth numbers are very promising. In fact, I'll take you through some of the data as well which can help you understand the current performance and the status of the Indian economy and the macroeconomic conditions of the Indian economy.
But however, the article raises a very crucial question. On one side, it appreciates the growth story of India. It acknowledges the resilient performance of the Indian economy. Despite a shadow being present across the world, India has done phenomenally well. While it appreciates the growth story of India, it also raises a key question. What are the future threats for our long-term growth prospects? Because see, there are headwind factors that are present across the world in the global economy, from ongoing wars and conflicts to the trade wars and geopolitical tensions. They can easily derail the global economy and India would, of course, be severely hit by any of these global developments. So in that context, you need to understand what structural weaknesses are still present in our economy internally, domestically. What external factors could have an influence? Are there areas where we can improve? Is this growth sustainable in the long run? That is the key question being raised in this particular article.
So let's dive into this topic and first let's look at the data that was brought out by the National Statistics Office. So India registered a real GDP growth of 8.2%, as I told you, in the second quarter of this fiscal year. It is a significant improvement compared to 5.6% growth registered in the same period of the previous fiscal. Even the nominal GDP numbers look very promising. Nominal GDP has been registered at 8.7%. Now, if you look at the output, if you look at gross value added and the output side of the production that has happened in the economy, nearly 48 lakh crore worth of production has been registered in quarter 2 of this fiscal year, which is again a major improvement compared to the same period of the previous fiscal. So this highlights the robustness of India's domestic economy, domestic production and the value addition which is happening in the economy.
Then, if you break this down sector-wise, if you look at manufacturing, which is very crucial for generating jobs, manufacturing has registered a very impressive growth of 9.1%. Then the Indian economy, which is primarily a service-based economy, the services industry has registered 9.2% growth in this quarter. And especially financial services happens to be one of the fastest-growing industries within the services sector. It has registered 10.1 to 10.2% growth. That's an indication that the financial health of the economy is also very strong and good. If financial services are registering more than 10% growth, it is a clear sign that the fintech industry, the banking, financial sector, they're performing phenomenally well. Lot of loans are being dispersed. The non-performing assets have been curbed and the transactions, the financial transactions have gone up significantly in the economy, which is responsible for this 10% plus growth in the financial services industry.
Even agriculture has done pretty well. Agriculture has registered around 3.5% growth thanks to good monsoons. The reservoirs are full to their sufficient water availability. Horticulture sector has seen a big jump in productivity. The inflation numbers are very much within the target. In fact, in the last couple of months, it has gone below the target set by the RBI. The RBI had given itself a target of 2 to 6%. This is the range within which inflation should be kept, with the ideal inflation of 4%. This is what the monetary policy committee of RBI tries to manage as part of its monetary policy. But now inflation has gone below 2%. Which means there is no inflationary pressure while domestic production has been able to sustain. So all around, you see good signs for the Indian economy. You may have some concerns about the Indian rupee visa v how it is performing against the US dollar, but experts believe that the rupee is pretty stable. It's not volatile. Yes, the dollar is exerting pressure. Rupee has depreciated, but it's not volatile. It's it's not a a crisis kind of a situation. India has very healthy forex reserves. So all around, the macroeconomic factors look very positive for India and this promises a good long-term growth trajectory for India.
But however, it is important to be realistic as well. You need to look at the downside risks that are present. Are there any problems in the way in which we compute our GDP data? Because recently, the IMF has provided grade C to India's GDP accounting numbers, and that's not a a good ranking to get from the IMF. It points towards serious flaws in our GDP accounting methodology itself. So now, before we talk about these structural problems that are present, if you look at private expenditure at the consumer level, there has been a significant growth here as well. 7.9% growth with regard to private final consumption expenditure that shows domestic demand has been able to sustain. Key sectors have registered very good growth numbers and essentially, the Indian economy looks on a solid footing. But however, the report by IMF, the ranking that has been given, it does raise questions about India's GDP methodology itself. The IMF has ranked India's accounting statistics as grade C. IMF provides four grades: Grade A, B, C, D. So this low grade for India's national income accounts is a very poor reflection on our statistics because there are major flaws that are present which have to be addressed. For example, the IMF has flagged the outdated base year which is still used in India. The base year for GDP estimation is still 2011-12. And in India, GDP estimation is driven primarily by production-based numbers than expenditure-based numbers. Global standard is to bring out GDP estimates and GVA estimates based on expenditure accounts. But here, we have relied on these outdated methods. We still use wholesale price index for inflation tracking, which is essentially accounted for computing other macroeconomic indices, whereas India is still focusing on retail inflation levels and we don't really compute the wholesale numbers into account. So there are few major flaws in the methodology itself which have been flagged by the IMF. If you look at state-wise data for GDP, for GVA numbers, for inflation, again, it's it's not very robust at the local level, at the district level. Those statistics are again questionable. The accounting which happens is largely at the national level. State level numbers are again questionable with flawed methodologies, outdated base years and even the periodic data which is used for the assessment, they don't come out periodically, they're not updated. And as a result, there are question marks over India's growth numbers that are projected by the government because obviously, on one hand, the government would have a vested interest to project better growth numbers, mainly to appeal to the domestic audience and even to project a good image abroad. But the ground reality shows that maybe these numbers may not reflect the actual growth that is happening in the Indian economy.
But again, you can't dismiss the numbers which have been registered because see, this is not just a a boom that we saw, for example, during post-COVID days where there was a big jump in GDP numbers. That was because of the base effect. Because during the COVID period, due to the lockdowns, growth had completely collapsed in all the sectors. So even minor growth would be blown up because of the base effect, the low base effect. Right now, that's not what is happening right now. The growth numbers you're seeing, maybe there are some problems with the accounting, but the growth clearly indicates a sustained domestic demand and it indicates sustained production in India despite the global negative factors that are present. Nobody can dismiss the fact that the Indian economy has been the bright spot in the entire world. But as long as we rely on outdated methodologies, these questions will keep coming up. And there are few structural issues which deserve the attention of the RBI, the Finance Ministry, the government in general, which is being discussed in this article. For example, India will have to ensure that the rupee gains back its value in comparison to the US dollar. Yes, the RBI now feels comfortable to let the market forces play because it is confident that the rupee would bounce back. Hence, RBI is holding back on its intervention in the forex market. But if necessary, it has enough, it has enough forex reserves to step in if needed to support the rupee. But however, the overall strengthening of the rupee, managing of the deficit, reducing our dependency just on services, this is something that we need to focus in the long term.
Now, for example, if you look at the agriculture sector, which is contributing to 3.5% of GDP growth, it employs the majority of the country's population. At least 55 to even up to 60% of India's population is employed in the agrarian sector. So in employment terms, we are still an agrarian economy with a large part of the country's population still dependent on agriculture. Services, which today accounts for 60% of the country's GDP, has become the backbone. Whereas there are major flaws and weaknesses in our manufacturing and industrial growth. For example, look at critical sectors, important industries like mining, electricity sector. Many of them have been struggling. So that is something which gets missed when your accounting methodology is not up to the global standards. The mining sector has faced reduced demand and even adverse weather conditions. Prolonged monsoon rainfall has affected mining operations and it has barely seen any growth in the last two quarters. Then demand for electricity has slowed down even during the winter because of the higher temperatures which are still prevalent in parts of the country. Even though winter has set in, it has reduced the demand for heating solutions, thus reducing the demand for electricity. So there are few areas which are of concern like mining, electricity, and in general across manufacturing because see, if you have to shift your people out of agriculture and ensure that you provide for upliftment of the masses, to uplift them out of poverty, you need to push them towards manufacturing. Manufacturing is the sector which can create those lakhs of jobs, sustain livelihoods because agriculture is unpredictable. You can't have nearly half the country's population dependent on agriculture where the growth numbers are 3.5%, that too dependent on monsoon rainfall. This year it is decent because thankfully we had good rains. What if there is a prolonged drought? That would have a devastating impact on the rural economy and eventually the Indian economy itself. So addressing these structural flaws is absolutely essential according to this article.
Now, you look at India's exports. Though exports have sustained, there are many challenges that are present. Our markets are still limited where we can export, plus the tariff wars which have begun, it has restricted access to certain key markets, particularly the United States. Trump's 50% tariffs has indeed hit India's exports, especially textile exports, agricultural products, even other engineering goods and commodities that we export to the US, they have taken a hit. So finding new markets, diversifying our exports, strengthening our exports is very critical. Though we have been able to manage the current account deficit, but you can't forget that we are dependent on remittances and the forex that we are earning through our service-based exports, software exports, for example, to bridge the current account deficit. Now compare this with China. Recently, China has registered a trade surplus of $1 trillion. It has registered a trade surplus of $1 trillion. Just imagine the scale of this. While India is struggling with a massive deficit amounting to hundreds of billions of dollars, China is registering a trade surplus of $1 trillion. When you take all its exports and imports into account and take the deficit into calculation, it has adjusted a trade surplus of $1 trillion. So this is built on China's strength in manufacturing and export-oriented industries. So this is where India needs to draw lessons from countries like China as well. This would require reforms across sectors, across industries. It would require proactive government involvement to support and enable few industries, and these are the areas that deserve our long-term attention if India has to sustain long-term growth. Yes, quarter 2 growth numbers are very good. Even if you take IMF's grade C ranking into account, despite that, India still has been performing very well. India will continue to do well for the coming years. But can this be sustained in the long term, in the next 10, 20, 30 years? For that, you need to address the structural problems that are present, and that is the only way out for India to ensure that we build a sustainable, fast-growing, inclusive economy.
So, based on the discussion we have had, please take up this practice question and use the key points, the data that we have discussed, the analysis that we have had, and try to practice your answer writing.
Now, let's look at the second topic. Very interesting topic. It's focused on the boom in satellite launches, the boom in satellite-based internet which we are witnessing in the world. The article is talking about the difficulty faced in spectrum allocation, the global competition which has begun to fight for spectrum so that you can deliver these satellite-based internet services, and allocation of orbits. So there is a race between private companies, space organizations, governments. It's not just an economic race, it's a strategic race with national security dimensions. So the boom in satellite launches and satellite-based internet, the competition for spectrum and orbits, the physical orbits where the satellites are placed, usually in low earth orbits. This raises economic and strategic questions which need to be addressed. So that is what we can learn from this article. Let's go deep into this. There are some interesting data pointers and facts which can be very important for prelims and even for your mains exams.
Now, when you look at communication satellites or satellites which can beam internet, these satellites are often placed in low earth orbit, typically the range of 150 to 2,000 km. Generally, they are placed around 300 to 500 km above the earth. For example, if you take Starlink of SpaceX, which is owned by Elon Musk, the Starlink constellation is placed roughly around 550 km. So this closer distance to the earth reduces the latency. Latency is the time delay that you face in communicating with a satellite. Closer the satellite, lower the latency. Further the farther the satellite, longer would be the latency. Now, when you take geostationary satellites into orbit, which are 36,000 km above the earth, there is a considerable latency period which gets added. There's a lag in the communication. So that is not the most appropriate form of communication for real-time services like telemedicine, online education, banking services. You need fast internet with very low latency, and that is possible through satellites that are placed in low earth orbits. The latency is very low. They can provide sufficient bandwidth. They can provide sufficient coverage, especially that of remote areas and underserved markets. This is where satellite-based internet communication is a transformative, radical technology.
See, right now, most of our urban centers, our cities, they're all easily well-connected with good internet services, which is based on your cell tower infrastructure, the underwater submarine cables that connect countries and continents, that is the backbone of our internet infrastructure today. But what about rural areas, remote areas which are sparsely populated, hilly, mountainous regions, border regions, disaster-prone regions? This is where your traditional internet services can't be provided easily. Even if attempts are made, it's going to be very costly and expensive to lay the OFC cables, to set up cell towers in nooks and corners of the country. It doesn't make financial sense for a private business to venture out into rural and remote areas to provide your traditional form of internet services. That is where satellite-based internet plays a critical role. States like Odisha, Uttarakhand, which are prone to disasters, can hugely benefit from satellite-based internet for disaster response and disaster management. Then remote areas, forested areas, they they would benefit with internet access which can trigger economic growth and activities.
Now, this is where these satellites have a limitation. They are good in providing high-speed internet connection in sparsely populated regions, in rural areas, remote areas. But when it comes to densely crowded cities, satellite-based internet doesn't work efficiently. If you have seen the recent podcast of Nikil Kamath with Elon Musk, Elon Musk actually breaks it down why Starlink services are not reliable in cities, in densely crowded areas, and how Starlink's focus is mainly rural areas, sparsely populated regions, and remote areas and unconnected regions. This is a limitation of the technology. So satellite-based internet, which has a tremendous market potential, it has really taken off in recent years, and there are many global companies which are looking to launch mega constellations of satellites. To take Starlink itself of SpaceX, their eventual goal is to have around 42,000 satellites in low earth orbit. If you're an enthusiast of sky watching, and you would have seen the train of satellites of Starlink passing overhead. It's quite easily visible to the naked eye if sufficient dark conditions exist in the night. So Starlink has been deploying such trains, such constellations, and it already has around 8,000 satellites in orbit. They want to launch thousands more. They want to have a mega constellation of 42,000 plus satellites in orbit to provide near global coverage.
There are other competitors for Starlink. You have OneWeb, which has hundreds of satellites in orbit. Then you have Project Kuiper of Amazon by Jeff Bezos. China has its own version of satellite-based internet, the Guowang. Please remember the names. This can be asked in prelims. So each of these projects involve mega satellite constellations involving thousands of satellites. China's plan is to deploy 13,000 plus satellites under the Guowang project. Amazon is looking to deploy 3,000 plus satellites under Project Kuiper. There are many such projects across the world. This competition is essentially creating a crunch for spectrum allocation and for orbit allocation because see, this is a limited resource.
But now, what is this spectrum that we're talking about? I'm talking about the electromagnetic spectrum which is used for establishing the communication link, the data link. Satellites use the Ku and Ka band frequencies for high-speed internet, for high-speed data transmission. The L-band frequencies are used mainly for GPS services. Now, who decides upon the allocation of the spectrum? Allocating a certain bandwidth to one service provider and allocating another frequency to another service provider because you can't have an overlap, that will cause interference. To provide quality service without interference, each service provider should have a unique spectrum in which they are operating. So you need a global regulatory authority of sorts to decide upon the spectrum allocation and also placing the satellites in orbit. Today, we have nearly 40,000 tracked objects around the earth in various orbits. Many of them are satellites. Some of it is space debris as well. In the coming years, believe it or not, by 2030, 50,000 satellites will be launched in our planet. By 2030, that's just in the next 5 years, 50,000 satellites are likely to be launched. That is almost 10,000 per year. So when so many satellites are being deployed, don't you think this will result in space traffic? It could lead to congestion of a critical resource which is of strategic value. So there should be a global regulator who assigns the orbit and allocates the spectrum.
So this regulator is the ITU, the International Telecommunication Union, a specialized agency of the United Nations. Please make a note of this. It's a specialized agency of the UN. It has universal membership. 194 countries, jurisdictions are part of it, including India. So, ITU currently operates on a first come, first serve basis model. The first to apply for allocation of orbit or a spectrum, they will get preference. Which means you have to have a sound legal and technical team and expertise to be able to submit your application, get it approved by ITU, and get your spectrum and orbit assigned. So this gives an unfair advantage to developed countries and rich companies which can afford such sophistication in their technical preparedness, in their legal expertise. They will easily process these applications. They will block the spectrum and orbits. They will ensure they will get the lion's share of this critical resource which is available. It's a limited resource which will get exhausted eventually. Right? So small players will often struggle. Developing, underdeveloped countries will be falling behind. Small startups and tech companies will fall behind, whereas the big giants will corner most of the good spectrum and the orbits. It's just like real estate. When a new apartment project is launched, have you seen when you contact the builder, even when you contact them on the day of the launch of the project, they'll tell you all the good units are booked out? Because those who are richer than you, those who had the money, they have already made the bookings. So this critical resource is not being optimally managed right now. Be it the spectrum allocation or orbit assignment, there needs to be better streamlining of this. There needs to be reforms in ITU governance. That is what the article is talking about because this eventually will determine accessibility and affordability of satellite-based internet because see, right now satellite-based internet is quite expensive. You take Starlink as an example. You know how much the receiving terminal of Starlink can cost. It'll cost you nearly 53,000 rupees. Because see, Starlink is looking to enter India. They have been in talks with the Indian government. They have received initial clearances. They are working out the tariffs and getting some final approvals to commercially launch their services in India. Each terminal that receives the signal will cost 53,000 rupees. And then you have to take a subscription. The subscription as of now on SpaceX website is listed as starting at 8,000 rupees per month, which is very, very expensive even for someone who is from the middle class or upper middle class. So such services will become the privilege of the rich and the elite. It will become a privilege of maybe the urban crowd. But satellite-based internet does not work efficiently in urban areas. So this raises questions about accessibility and affordability. This is crucial for a country like India.
Now, you look at ISRO's communication satellites, the GSAT series, for example, it caters to the national objectives of accessibility and affordability. GSAT, for example, has a special band which is assigned to the remote islands of Andaman and Nicobar to ensure Andaman and Nicobar has adequate connectivity with the rest of the country and the world. ISRO is a public space agency and hence it can focus on accessibility and affordability, ensure it serves national interests. But private companies won't do that. Private companies would be driven by the profit motive. So when such expensive internet services come out and people can't afford it, it'll become a preserve of just the rich and the elite, and it creates a big digital divide in the country. So how do you address the digital divide? How do you address the global divide between developed and developing nations where they might corner most of the spectrum and the orbits, leaving very less for the other countries? So you need reforms of the ITU and how spectrum is allocated and orbits are assigned. In fact, the World Telecommunication Conference of 2023 has already pushed and introduced some reforms in this regard to ensure a level playing field when it comes to allocation of spectrum and orbits for satellites.
The other major concern with these mega constellations is that it creates a lot of waste debris in space. I'm sure all of you know that space debris is a huge hazard. It's a big risk. It increases the chances of collision and it can trigger a domino effect, a chain reaction where eventually space exploration might become impossible if space debris crosses a certain point, a certain threshold. So when these companies and organizations are putting thousands of satellites into orbit, just imagine the kind of space debris that will be present in the next few years. So there needs to be clear-cut guidelines which should be enforced on these organizations to deorbit their old or dysfunctional satellites. Right now, there are guidelines, but it's not sufficient to deal with the scale of space debris that we are looking at. So there needs to be further reforms of global governance of satellite spectrum allocation and orbit allocation with mandatory commitments and rules on deorbiting the dysfunctional satellites and removing the space debris. Space agencies like NASA, ISRO, they have programs to deal with space debris, but you need efforts from the private sector because in the coming years, it is the private sector which will be the biggest contributor to space debris. If they are looking to launch 10,000 satellites every year, right, and the satellite internet industry is going to explode. Last year it was valued at $4 billion, in another few years it'll cross $25-30 billion. The private industry which might benefit from the demand for satellite-based internet should play a responsible role in utilizing this limited resource. They have to ensure the orbits are clear and safe by dealing with the space debris effectively. So for ensuring this regulatory framework, you need reforms of the ITU at the global level. You need better coordination between countries. You need a United Nations to play a more proactive role to ensure that space is protected as a very valuable resource for mankind. So this is something important that we learned from this article. You can expect a question on this topic from science and technology. So please be prepared for this. Take up this question as a practice question.
Now, moving on, we have few small topics. Let's look at them one by one. On page 10, the Supreme Court has pointed out that the state is a continuum. The state is not subservient to the ruling party which is in power or to the leadership which is in power. A very, very important lesson for aspiring civil servants. It's a lesson in ethics as well. See, the case the Supreme Court was dealing with, it was related to the illegal mining scandal from Jharkhand, which is supposedly involving the Chief Minister Hemant Soren. So there's a CBI inquiry going on. The state government has appealed against this inquiry of the CBI, and the Supreme Court found the argument of the state government to be very concerning. It appeared that the government machinery was being used to protect one man, that is the Chief Minister of Jharkhand, who is the accused in the illegal mining case. So in this case, the Supreme Court has reminded the state of its duty and responsibility. Now, what do you mean by the state? The state refers to the government, right? The government machinery, the key departments and organizations, the government officers, the personnel were part of it, the entire administrative setup is what is referred to as state in this context. So according to the Supreme Court, this state machinery is meant to serve the interests of the people. It is meant to have an obligation for the constitution of the country and the laws that are enacted by the legislature. That is the only obligation for the state. A state should never be obligated to the ones who are in power because those who come to power, they are transitional. They're temporary. Doesn't matter who's the Prime Minister, which party is in power. Doesn't matter who's the Chief Minister at the state level. It's not the job of the state. It's not the role of a civil servant or a government department to serve that party or that leader. Right? That's why the Supreme Court has said the state is a continuum. Meaning it's a permanent entity. Government of India will always exist. Whether or not Congress will be in power, BJP will be in power, doesn't matter. The Government of India will exist. State governments will continue to exist. So they are permanent. Whereas your ruling parties, your leadership who are elected to power, they are not permanent. They are transitional. They are temporary. So the allegiance of the state, the focus of the state, and the loyalty of the state not to the elected leaders in the party, it is to the people, it is to the constitution and the law of the land. So this reminder, a very strong reminder has been given by the Supreme Court in this particular case. So it helps you understand the concept of state being in a state of continuous operation, a state being seen as a continuum, as a permanent entity of sorts.
Now, moving on, topic number four. India is scaling up the allocation of offshore blocks for resource exploitation. See, in our exclusive economic zone, plenty of resources can be found, from fisheries to hydrocarbons, that's oil and gas, then precious minerals such as polymetallic nodules, then even sand which is of construction grade, which is high value in the market, then lime mud, which also has a lot of industrial applications. Many such resources can be found in the sea. Right? Every country has its exclusive economic zone where the resources are present which have to be harnessed. Now, India is having a very ambitious plan to harvest the resources that are found in our offshore sites. So the government has started allocating these offshore blocks for different private entities to explore the key resources. For example, off the coast of Kerala, few offshore blocks have been assigned and have been allocated to private companies to harvest the sand, construction grade sand, which is available in these offshore blocks. Off the coast of Gujarat in the Arabian Sea, two offshore blocks are being assigned to private companies to harvest lime mud, which is commercially very valuable because of its applications in the industry. Then polymetallic nodule exploration. These offshore blocks present off the coast of Andaman and Nicobar Islands have also been allocated to a few private companies. So these allocations of offshore blocks in India's exclusive economic zone, it has raised environmental concerns with regard to marine biodiversity. Experts and environmentalists have raised a question mark. So to this criticism, the government has replied. The Minister for Earth Sciences, Union MOS for Earth Sciences, Jitendra Singh, has addressed these concerns that offshore blocks which are being allocated right now, none of them fall within marine protected areas. The government has clearly demarcated marine protected areas along India's coastline within our EEZ. Around 130 marine protected areas have been designated where offshore blocks will not be demarcated. Out of these 130 marine protected areas, 106 of them, they have been designated as important coastal and marine biodiversity areas because of their rich marine coastal life. It sustains different life forms. So 106 of these protected areas are listed as important coastal marine biodiversity areas, which means there will be a focus on conservation, protection of these areas. 130 are declared as marine protected areas, and they do not overlap with the offshore blocks which are being allocated for commercial resource exploitation. In fact, a set of regulations also have been brought out by the government under the Offshore Areas Mineral Conservation and Development Rules of 2024. And the government is also establishing a trust, the Offshore Areas Mineral Trust, which will have representation from the concerned coastal state governments as well. And the funds they raise in this trust will be utilized for environmental activities, for conservation, protection of the marine biodiversity, for mitigation of the impact of these projects. And before the projects are taken up, environment impact assessment would be carried out, and accordingly, the project proponent would pay additional penalties or charges to compensate for the environmental loss and damage and to mitigate the impact on the marine environment. These precautionary steps have been taken up by the government to protect the marine biodiversity while continuing to explore these key resources. This shows the balanced policy and approach of the government. While on one hand, we focus on resource exploration, which is much needed for our growth and to become self-reliant, and at the same time, focusing on environment conservation as well.
Next, topic number five. Prime Minister Modi will soon be traveling to Oman along with Piyush Goyal, the Commerce Minister of India. Now, this expected visit is likely to happen in a few days, in a week, and it's a very crucial visit because India and Oman are almost set to sign a free trade agreement. Oman is a key partner for India because look at the map. Look at the location of Oman. India and Oman are separated by the Arabian Sea, and they are key partners in the Indian Ocean region. Oman is very close to us in terms of defense relations and strategic ties as well, be it for counterterrorism or for port access. Oman has strategic ports like Duqm and Salalah. Indian Navy has been given access to the Duqm port. Indian Navy has been carrying out port visits to Salalah port as well, and this allows India to access the Strait of Hormuz and Bab-el-Mandeb strait. Both the straits in West Asia, they are strategic choke points which is very crucial for global trade, for global shipping. India's export-imports are dependent on Hormuz and Bab-el-Mandeb's straits. So we already have very close defense relations, intelligence partnership, and strategic ties, and we are further stepping up the economic relations as well. Oman is a supplier of energy to India. India has investments in Oman. There are Indian companies which have made big investments in Oman. Then Oman is looking to invest in India's infrastructure, in Indian startups. So there's a lot of close ties economically, and we want to further boost the trade, and that's why the two countries have finalized a comprehensive economic partnership agreement. The negotiations, they started a couple of years ago in 2023. After resolving all the issues, finally, the two governments have taken up the process to get the internal approvals, and eventually, the leaders will sign the FTA, and this is likely to boost India's trade with Oman and with another West Asian country. Did you know there's another West Asian country with which we have signed a free trade agreement, a similar comprehensive economic partnership agreement? Can you find out which country is it in West Asia and please mention that in the comments? Now, India is also fast-tracking its FTA negotiations with New Zealand. New Zealand is another country with which we are eagerly looking forward to an FTA. Maybe in the coming few months, even this might happen. But by next week, there's a lot of hope that India-Oman FTA might be signed, and PM Modi would be traveling personally to Oman for the signing ceremony. So once the further details of the FTA would come out, we will discuss this in great detail.
Then, coming to topic number six, on page 14, it's mentioned that the European Union has come out with a new climate agreement. They come out with a new climate commitment to cut emissions by 90%. To cut emissions by 90% by the year 2040 as compared to pre-industrial levels. Now, this is an additional commitment the European Union is making because see, EU countries are already obligated under the Paris Agreement, under the climate change convention, and as part of their nationally determined contributions, their voluntary contributions, they have a target to cut emissions and eventually achieve carbon neutrality. The EU has set a target to achieve carbon neutrality by 2050. They want to become climate neutral to ensure that they bring the emissions down, increase their carbon sequestration, and thus become climate neutral by the middle of the century. So on the path to neutrality, the EU is making some additional commitments. Apart from their existing commitments under the Paris Agreement, EU countries are looking to cut emissions by 90% by 2040 compared to pre-industrial levels. And as part of this deal, they will be purchasing carbon credits from other countries. This is an opportunity for developing countries to raise funds, to raise finance, because carbon credits can be a lucrative opportunity through in order to channel mitigation funds from developed regions like the European Union towards developing countries like India. So in India, projects which can save emissions and earn carbon credits, they can sell those credits to the European players to help them meet their emission targets in return for the payments which are done to acquire the carbon credits. So 5% of this goal would include purchasing carbon credits from other countries. So EU has a significant allocation for purchasing carbon credits. So this can enable the flow of money from developed regions to developing countries to help in climate action.
Now, coming to the prelims section, let's look at the small prelims topics. On page 11, we have an article related to the appointment of the Chief Information Commissioner and Information Commissioners. The article refers to the appointment process or the selection committee. There is a conflict which has erupted between the members of this selection committee who represent the government and those who represent the opposition. So both accusing each other of derailing the process of appointment of CIC. And as you know, the Information Commission plays a critical role in transparency and accountability in helping the people hold the government accountable. So for appointment of Chief Information Commissioner and Information Commissioner, there is a selection committee as per the RTI Act. This selection committee comprises of the Prime Minister and a minister nominated by the Prime Minister. Currently, it is the Home Minister Amit Shah who has been nominated by PM Modi, and the Leader of Opposition in the Lok Sabha. The Leader of Opposition in the Lok Sabha currently would be Rahul Gandhi. So they are the members of the selection committee. So decisions are made by a majority vote. Obviously, the government has an upper hand. The Prime Minister and the other minister nominated by him would be on the same page, leaving the Leader of Opposition's role as a ceremonial role to bring some checks and balance into the appointment process. But if, let's say, the concerns of the Leader of Opposition is not taken into account, let's say appointment of a controversial officer is being considered, and the Leader of Opposition flags it. Ideally, the PM and the other minister should look at other names, someone who has a clean track record with integrity, and taken the views of the Leader of the Opposition. But if that is dismissed, and if they go simply with their majority that is available in the committee, then the President of India would be bound to appoint them, thus leading to the dominance of the government itself, those who are in power, and dominate the appointment process. There have been considerable delays as well in the appointment of the CIC and the ICs, and for prelims, it's very important to know who are part of the selection committee. Now, can you find out the eligibility criteria to be appointed as Chief Information Commissioner and Information Commissioners? Please mention that in the comments.
Next, a big development. The Diwali or Deepawali festival has been recognized by UNESCO as part of intangible cultural heritage of humanity. Intangible cultural heritage of humanity. The Diwali festival, it brings out the social bonds that it creates in the society. It creates numerous economic opportunities for artisans, craftsmen, be it those who make the diyas, right, or those who manufacture fireworks. The festival is not just a rich representation of India's civilizational heritage and cultural heritage. It's also of great economic and social value. It is something that unites the society together, builds those much-needed harmonious bonds in the society. It is something which is, I mean, you can't measure, you can't quantify, you know, the kind of contribution a festival like Diwali makes to the society. So it is that intangible cultural heritage which is recognized by UNESCO by maintaining this list, and the Diwali festival has been recognized as well. Toby Shakes would be bringing out a video or a shorts based on this topic. Please watch out for that on our YouTube channel.
Next, a threatened species is in the news. The Western Tragopan. The Western Tragopan, it's a type of a pheasant. A very rare pheasant. Traditionally, it was found in parts of Himachal Pradesh, Jammu and Kashmir, and Uttarakhand. This has been the historical range of this bird. But today, it is largely restricted to parts of Himachal Pradesh. Much of its habitat has been destroyed. The IUCN has listed this bird as vulnerable on the Red List. Hardly 3,000 to 9,000 individuals are alive in the wild. Though there was a captive breeding program and it has been successful in increasing the population, it has not really increased the prospect of this bird to survive. There is a heightened risk of this bird's critical endangerment and eventual extinction because of climate change, destruction of habitat, and even hunting and poaching. In fact, this bird, you can see here in the image, it is the state bird of Himachal Pradesh as well. So, please make a note of these key facts about the Western Tragopan, a rare pheasant which is listed as vulnerable by the IUCN.
Coming to topic number 10, on the supplement section of the science and tech edition, the Hindu makes a mention of the Copernicus program of the European Union. What is the Copernicus program? See, the European Union has launched the Copernicus program in 2014 to develop scientific, to develop scientific abilities, estimation, and methodologies in the field of climate change forecasting, disaster management, etc. There are many initiatives under this Copernicus program to track emissions, to understand the impact of global warming on climate systems, on weather patterns, on air circulation, on oceanic currents, how it can influence extreme weather events and disasters. So there are many themes based on which research and scientific expertise is built under the Copernicus program. It's a very well-funded initiative by the European Union, launched in 2014, and it basically brings out climate research, climate studies, which is extremely useful. According to a recent study, 2025 might be the second or third warmest year that humanity has ever experienced. In fact, the last three years, 2023, 2024, 2025, this would be the first three-year period where global average temperatures have been 1.5 degrees above pre-industrial levels. This is the target of the Paris Agreement. Under the Paris Agreement of the Climate Change Convention, the goal is to limit the global rise in temperatures to under 2 degrees Celsius and if possible to keep it under 1.5 degrees Celsius. But studies have shown we've already started breaching the 1.5-degree mark, and for the first time, the last three-year period, we have seen the global average temperature being above the 1.5-degree mark when compared to pre-industrial levels. So in this context, the EU's Copernicus Climate Change Service was mentioned in the article. So in prelims, there can be a question on the Copernicus program of the European Union.
Coming to the last topic for today, Australia has become the first country to ban social media for underage minors who are under the age of 16 years. It has this law which was passed by Australia a few months ago. It has been enforced. It has been brought into effect. So please make a note to protect minor children under the age of 16 years from the harmful effects of social media. Australia has brought out this revolutionary legislation to hold the big tech companies accountable. This will allow parents and their children to take control over their data, to protect their privacy, and ensure that their children remain safe in the online environment, in the virtual world, because children might be exposed to harmful content. They might be lured by pedophiles. They might be pushed to commit acts which they don't even understand, and they are very, very vulnerable for many such cybercrimes, and it's essential to protect them and their data as well. That's why Australia has brought out this landmark legislation, and it has taken full effect where social media companies now have an obligation to delete all the user accounts of those who are under 16 years. If they fail to do that, they can be penalized under the Australian legislation. Penalties can be imposed on these big tech companies to hold them accountable. So, please make a note of this. It can be relevant for your prelims exam.
On this note, I bring my discussion to an end. I hope you guys have understood everything. If you like the class, do press the like button, share your comments, and don't forget to subscribe to our channel. Thanks for watching.