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DAILY NEWS ANALYSIS

Monthly DNA

05 Apr, 2021

20 Min Read

Blockchain Enabled Interface for Indian Spices

GS-II : Governance e-Governance

Blockchain Enabled Interface for Indian Spices

Spices Board India and UNDP India's Accelerator Lab sign MoU to develop a blockchain-powered traceability Interface for Indian spices. This new interface will serve to enhance transparency in the supply chain and trade.

India is the largest exporter, producer and consumer of spices in the world.

What are Blockchains?

  • Blockchains are a new data structure that is secure, cryptography-based, and distributed across a network.
  • The technology supports cryptocurrencies such as Bitcoin and the transfer of any data or digital asset.
  • Spearheaded by Bitcoin, blockchains achieve consensus among distributed nodes, allowing the transfer of digital goods without the need for centralized authorisation of transactions.

How it operates?

  1. The technology allows transactions to be simultaneously anonymous and secure, peer-to-peer, instant and frictionless.
  2. It does this by distributing trust from powerful intermediaries to a large global network, which through mass collaboration, clever code and cryptography, enables a tamper-proof public ledger of every transaction that’s ever happened on the network.
  3. A block is the “current” part of a blockchain which records some or all of the recent transactions, and once completed, goes into the blockchain as a permanent database.
  4. Each time a block gets completed, a new block is generated. Blocks are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block.

Benefits of blockchain technology:

  • As a public ledger system, blockchain records and validate each and every transaction made, which makes it secure and reliable.
  • All the transactions made are authorized by miners, which makes the transactions immutable and prevent it from the threat of hacking.
  • Blockchain technology discards the need of any third-party or central authority for peer-to-peer transactions.
  • It allows decentralization of the technology.

About Spices Board

Spices Board is one of the five Commodity Boards functioning under the Ministry of Commerce & Industry.

It is an autonomous body responsible for the export promotion of the 52 scheduled spices and the development of Cardamom (Small & Large).

The main functions of the Spices Board are the following:

(i) Research, Development and Regulation of domestic marketing of Small & Large Cardamom;

(ii) Post-harvest improvement of all spices;

(iii) Export promotion of all spices and assisting exporters in technology upgradation, quality management, brand promotion, research & product development;

(iv) Development of spices in the North East;

(v) Regulation of quality of spices for exports through its quality evaluation services; etc.

Source: PIB

Impacts of Desert Dust Particles on Indian Summer Monsoon

GS-I : Physical Geography Climatology

Impacts of Desert Dust Particles on Indian Summer Monsoon

A new study shows the impacts of desert dust coming from the West, Central, and East Asia in the Indian Summer Monsoon.

Impact of Desert Dust Particles on Indian Summer Monsoon:

  • Strong winds carry the dust particles from the Middle East into the atmosphere.
  • Dust particles absorb solar radiation and become extremely hot.
  • This causes heating of the atmosphere. Heat decreases the air pressure and changes wind circulation patterns. Further, it increases the moisture transport capacity of air and increases precipitation and rainfall.
  • This phenomenon is termed an “elevated heat pump”. It is responsible for driving moisture from the sea to the Indian subcontinent.

Positive Feedback Loop:

  • Positive Feedback Loop is a loop where the result of a reaction leads to an enhancement of that very reaction.
  • In this case too, a positive feedback loop plays a role when the dust particles from the Middle East boost the power of Indian monsoons.
  • In turn, the monsoons increase the winds in the Middle East and subsequently produce more dust aerosols.

Role of Iranian Plateau on Indian Summer Monsoon:

  • Iranian Plateau also influences the Indian Summer Monsoon. The hot air over the Iranian Plateau can heat the atmosphere over the plateau.
  • It further strengthens the circulation over the deserts of the Arabian Peninsula and increases dust emission from the West Asia.

Influence of Aerosols on Indian Summer Monsoon:

  • Aerosol is a suspension of fine solid particles or liquid droplets in air or another gas. Aerosols can be natural or anthropogenic:
    • Examples of natural aerosols are fog, mist, dust, forest exudates, and geyser steam.
    • Examples of anthropogenic aerosols are particulate air pollutants and smoke.

Monsoon

A monsoon often brings about thoughts of torrential rains, similar to a hurricane or typhoon. But there is a difference: a monsoon is not a single storm; rather, it is a seasonal wind shift over a region.

    • The shift may cause heavy rains in the summer, but at other times, it may cause a dry spell.

Cause for Monsoon:

  • A monsoon arises due to a difference in temperatures between a land mass and the adjacent ocean.
  • The sun warms the land and ocean differently, causing the winds to play "tug of war" eventually switching directions bringing the cooler, moister air from over the ocean.
  • The winds reverse again at the end of the monsoon season.

Location:

  • A monsoon forms in the tropics (between 0 and 23.5 degrees latitude north and south) and subtropics (between 23.5 degrees and 35 degrees latitude north and south).
  • The strongest monsoons tend to occur in India and South Asia in the north and Australia and Malaysia in the south.
  • Monsoons also occur in southern parts of North America, in Central America, northern areas of South America, and in western Africa.

Monsoons also occur in southern parts of North America, in Central America

  • Some studies have found that anthropogenic aerosols, emitted from the Indian subcontinent, can decrease summer monsoon precipitation.
  • While other studies have found that absorbing aerosols such as dust can strengthen the monsoon circulation.
  • However, in this study, it was found that anthropogenic aerosols can strengthen Indian summer monsoon rainfall.

Influence of Dust Particles across the Globe: Dust Particles from deserts across the globe play important role in monsoons:

  • The dust aerosols from deserts in West China such as the Taklamakan Desert and the Gobi Desert can be transported eastward to eastern China and can influence the East Asia summer monsoon.
  • The small deserts in the southwest United States are known to influence the North African monsoon.

Source: TH

Exercise La Perouse

GS-III : Internal security Security Forces & Agencies

Exercise La Perouse

  • Indian Navy Ships are participating, for the first time; in the multi-lateral maritime exercise La Pérouse, conducted in the Eastern Indian Ocean Region

  • The Indian Navy ships and aircraft will exercise with ships and aircraft of the French Navy, Royal Australian Navy, Japan Maritime Self Defence Force and the United States Navy.
  • Exercise La Pérouse will see complex operations including surface warfare, anti-air warfare and air defence exercises.
  • The exercise will showcase high levels of synergy, coordination and inter-operability between the friendly navies demonstrating shared values of ensuring freedom of seas and commitment to an open, inclusive Indo-Pacific and a rules-based international order.

Source: PIB

Advanced Chaff Technology by DRDO for Naval Safety

GS-III : S&T Indigenization of Technology

Advanced Chaff Technology by DRDO for Naval Safety

  • DRDO has developed an Advanced Chaff Technology to safeguard the naval ships against enemy missile attacks.

  • The successful development of Advanced Chaff Technology by DLJ is another step towards Atmanirbhar Bharat.

Chaff is a passive expendable electronic countermeasure technology used worldwide to protect naval ships from enemy radar and Radio Frequency (RF) missile seekers.

  • The importance of this development is that very less quantity of chaff material deployed in the air acts as decoy to deflect enemy’s missiles for safety of the ships.

Defence Research and Development Organisation

  • DRDO works under the administrative control of the Ministry of Defence.
  • It is working to establish a world-class science and technology base for India and provides Defence Services decisive edge by equipping them with internationally competitive systems and solutions.
  • It was established in 1958 after combining the Technical Development Establishment (TDEs) of the Indian Army and the Directorate of Technical Development & Production (DTDP) with the Defence Science Organisation (DSO).
  • It is responsible for carrying out Integrated Guided Missile Development Programme (IGMDP).

Source: PIB

Increased FDI Inflows in FY 2020-21

GS-III : Economic Issues FDI and recent rules

Increased FDI Inflows in FY 2020-21

India has attracted the highest ever total FDI inflow of US$ 81.72 billion during the financial year 2020-21 and it is 10% higher as compared to the last financial year 2019-20 (US$ 74.39 billion).

  • FDI equity inflow grew by 19% in the F.Y. 2020-21 (US$ 59.64 billion) compared to the previous year F.Y. 2019-20 (US$ 49.98 billion).
  • In terms of top investor countries, Singapore is at the apex with 29%, followed by the U.S.A (23%) and Mauritius (9%) for the F.Y. 2020-21.
  • Computer Software & Hardware’ has emerged as the top sector during F.Y. 2020-21 with around 44% share of the total FDI Equity inflow followed by Construction (Infrastructure) Activities (13%) and Services Sector (8%) respectively.
  • Under the sector `Computer Software & Hardware, the major recipient states are Gujarat (78%), Karnataka (9%) and Delhi (5%) in F.Y. 2020-21.
  • Gujarat is the top recipient state during the F.Y. 2020-21 with a 37% share of the total FDI Equity inflows followed by Maharashtra (27%) and Karnataka (13%).
  • Out of top 10 countries, Saudi Arabia is the top investor in terms of percentage increase during F.Y. 2020-21. It invested US$ 2816.08 million in comparison to US$ 89.93 million reported in the previous financial year.

FDI Routes in India

There are three routes through which FDI flows into India. They are described in the following table:

Category 1

Category 2

Category 3

100% FDI permitted through Automatic Route

Up to 100% FDI permitted through Government Route

Up to 100% FDI permitted through Automatic + Government Route

Automatic Route FDI

In the automatic route, the foreign entity does not require the prior approval of the government or the RBI

Examples:

  • Medical devices: up to 100%
  • Thermal power: up to 100%
  • Services under Civil Aviation Services such as Maintenance & Repair Organizations
  • Insurance: up to 49%
  • Infrastructure company in the securities market: up to 49%
  • Ports and shipping
  • Railway infrastructure
  • Pension: up to 49%
  • Power exchanges: up to 49%
  • Petroleum Refining (By PSUs): up to 49%

Government Route FDI

Under the government route, the foreign entity should compulsorily take the approval of the government. It should file an application through the Foreign Investment Facilitation Portal, which facilitates single-window clearance. This application is then forwarded to the respective ministry or department, which then approves or rejects the application after consultation with the DPIIT

Examples:

  • Broadcasting Content Services: 49%
  • Banking & Public sector: 20%
  • Food Products Retail Trading: 100%
  • Core Investment Company: 100%
  • Multi-Brand Retail Trading: 51%
  • Mining & Minerals separations of titanium-bearing minerals and ores: 100%
  • Print Media (publications/printing of scientific and technical magazines/speciality journals/periodicals and a facsimile edition of foreign newspapers): 100%
  • Satellite (Establishment and operations): 100%
  • Print Media (publishing of newspapers, periodicals and Indian editions of foreign magazines dealing with news & current affairs): 26%

Sectors where FDI is prohibited

There are some sectors where any FDI is completely prohibited. They are:

  • Agricultural or Plantation Activities (with exceptions like horticulture, fisheries, tea plantations, Pisciculture, animal husbandry, etc.)
  • Atomic Energy Generation
  • Lotteries (online, private, government, etc.)
  • Investment in Chit Funds
  • Trading in TDR’s
  • Any Gambling or Betting businesses
  • Cigars, Cigarettes, or any related tobacco industry
  • Housing and Real Estate (except townships, commercial projects, etc.)

Source: PIB

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