PM IAS UPSC CURRENT EVENTS DEC 31

The Rise of UPI and Challenges of Market Vulnerabilities

Source: The Hindu

Syllabus: GS III Science and Technology

The Unified Payments Interface (UPI), launched by the National Payments Corporation of India (NPCI) in 2016, represents a paradigm shift in India’s digital economy. Its success, demonstrated by transactions exceeding ₹20.60 lakh crore by August 2024, highlights India’s capability to innovate and scale financial technology. However, to maintain its growth trajectory and enhance resilience, policymakers must address emerging vulnerabilities, particularly concerning market concentration and inclusivity.

UPI’s Transformational Impact

Widespread Adoption

UPI has become a cornerstone of India’s digital payments ecosystem, accounting for nearly 80% of all digital transactions in the country. It has overcome traditional barriers like cash dependency and low digital literacy, showcasing its transformative potential.

Driving Financial Inclusion

UPI has democratized financial transactions by enabling real-time payments for even the smallest amounts, fostering digital inclusivity. Its integration with platforms like Aadhaar and Jan Dhan accounts further accelerates financial inclusion.

Current Challenges and Vulnerabilities

Limited Reach

Despite its success, UPI’s penetration is limited to 30% of the population. Expanding its reach to the remaining 70%, particularly in rural areas, requires focused efforts in infrastructure development, user education, and inclusive design.

Market Concentration Risks

1. Duopoly in the Ecosystem
   
   • Market Dominance: PhonePe and Google Pay collectively control over 85% of UPI transactions, creating systemic vulnerabilities. Paytm, the third-largest player, holds only 7.2% market share.
   • Systemic Risks: The dominance of two platforms creates a “single point of failure,” where disruptions could ripple across the financial ecosystem, impacting millions.
   • Lack of Competition: High entry barriers deter smaller players, stifling innovation and reducing consumer choices.
2. Data Sovereignty Concerns
   
   • The foreign ownership of PhonePe and Google Pay raises concerns about data security and sovereignty. Ensuring Indian TPAPs’ growth is critical to safeguarding sensitive user data and mitigating geopolitical risks.

Regulatory Landscape and Gaps

Market Share Cap

The NPCI introduced a 30% market share cap for TPAPs in 2020, intended to reduce systemic vulnerabilities. However, enforcement delays and discussions of raising the cap to 40% have allowed the duopoly to consolidate further.

Policy Ineffectiveness

• Regulatory inertia has amplified risks, with PhonePe and Google Pay holding 48.36% and 37.3% market shares, respectively, as of August 2024.
• Delayed implementation undermines the competitive environment and highlights the need for proactive regulation.

Policy Recommendations

1. Enforcing Market Caps
   
   • Implement the 30% cap without further delays to dilute market concentration. Avoid increasing the cap, as it would entrench existing players’ dominance.
2. Promoting Domestic Players
   
   • Offer financial incentives, grants, and policy support to Indian TPAPs. Strengthening domestic players will enhance data sovereignty and create a more balanced ecosystem.
3. Fostering Innovation
   
   • Invest in digital infrastructure and user-centric designs to make UPI more accessible for underserved populations, particularly in rural areas.
   • Tailor services to address unique challenges like low digital literacy and limited internet penetration.
4. Building Ecosystem Resilience
   
   • Develop robust fail-safes and contingency mechanisms to ensure uninterrupted services during disruptions. This is crucial for maintaining user trust.
   • Encourage sandbox environments to test new features and security protocols.
5. Enhancing Digital Literacy
   
   • Launch nationwide campaigns to educate citizens on digital payments and cybersecurity. This will improve adoption rates and safeguard users from fraud.

Lessons for India’s Digital Economy

Balancing Growth and Regulation

UPI’s success underscores the need for balancing rapid growth with regulatory vigilance. An inclusive, competitive, and resilient ecosystem will ensure long-term sustainability.

Catalyzing Innovation Through Policy

Proactive policies promoting innovation, competition, and inclusivity can address the vulnerabilities of market concentration while enabling broader adoption.

Strengthening Sovereignty in Technology

Fostering domestic innovation in financial technology will reduce reliance on foreign entities, ensuring India’s digital sovereignty.

Conclusion

UPI exemplifies India’s potential for technological innovation and inclusive growth. Its next phase demands a fine balance between competition, innovation, and resilience. Addressing challenges like market concentration, data sovereignty, and limited reach will be pivotal. 

Grave New World: Human-Induced Loss of Elders in Species

Source: The Hindu

Syllabus: GS III Environment

The natural world is intricately interconnected, and the role of elder individuals within species often forms a crucial cornerstone of population stability. However, human-induced climate change, habitat destruction, and hunting are accelerating the loss of these elders, threatening not only individual species but also the balance of ecosystems. This article delves into the ecological importance of elder individuals, the consequences of their loss, and the need for a paradigm shift in conservation strategies.

Importance of Elders in Animal Populations

Elder individuals in various species possess unique knowledge and experiences that contribute significantly to the survival and stability of their populations. Much like humans, animal elders play a vital role in guiding their groups through challenges, ensuring reproductive success, and preserving cultural knowledge.

1. Social Stability and Knowledge Transmission
   
   • Elders often act as repositories of critical survival information, such as migratory routes, feeding grounds, and predator avoidance techniques.
   • For instance, elephant matriarchs, known for their long-term memory, lead herds to water during droughts and organize defensive formations against predators.
2. Parental Assistance and Reproductive Success
   
   • Species such as orcas exhibit the “grandmother effect,” where elder females, after menopause, focus on helping their descendants survive, thus ensuring higher survival rates for their offspring.
   • Similarly, older fish and reptiles produce more eggs and healthier offspring, contributing significantly to population sustainability.
3. Adaptation to Environmental Changes
   
   • Elders pass down knowledge about coping with extreme weather and human disturbances, aiding their species in adapting to changing ecosystems.

Impact of Elder Loss on Ecosystems

The loss of elder individuals disrupts social structures, reduces reproductive success, and increases vulnerability to environmental and human threats. Key consequences include:

1. Social Instability
   
   • In elephant populations, the absence of matriarchs results in stressed and directionless herds, increasing negative interactions with humans.
   • In marine species, the loss of experienced individuals disrupts migratory patterns and spawning cycles.
2. Increased Vulnerability
   
   • Younger individuals struggle without the guidance of elders, making them more susceptible to predation and habitat challenges.
   • Stress levels in younger and inexperienced members rise, as observed in elephant herds with fewer elder females.
3. Reduced Resilience
   
   • The inability to adapt to environmental fluctuations, such as climate extremes, heightens the risk of population decline.

Longevity Conservation: A New Paradigm

Recognizing the importance of elder individuals, ecologists propose “longevity conservation,” a strategy emphasizing the protection of older members within species.

1. Core Principles of Longevity Conservation
   
   • Conservation policies must protect age structures, particularly for long-lived species.
   • Age and size-based management strategies, such as selective fishing gear, can help preserve older fish and reptiles.
2. Challenges in Implementation
   
   • In multi-species fisheries like India, where over 700 species are caught simultaneously, tailoring gear to protect specific sizes or species remains a logistical challenge.
   • Balancing economic demands with conservation goals requires innovative solutions and targeted interventions.
3. Policy Gaps and Recommendations
   
   • The International Union for Conservation of Nature (IUCN) does not yet recognize the loss of elder individuals as a criterion for listing threatened species.
   • Integrating longevity conservation into national and international frameworks can strengthen species protection.

Conclusion

Elder individuals in animal populations are invaluable for maintaining ecological stability, enabling adaptation, and ensuring species survival. The accelerating loss of elders, driven by human-induced pressures, demands urgent attention and a shift in conservation paradigms. By prioritizing longevity conservation, strengthening regulations, and fostering innovation, humanity can better safeguard biodiversity and the intricate web of life that sustains ecosystems.

India’s Obligations Towards the Rohingya Refugees

Source: The Hindu

Syllabus: GS I India and Neighborhood relations

The plight of the Rohingya refugees in India underscores the complex interplay of international human rights obligations, constitutional protections, and domestic legal frameworks. A recent report by The Azadi Project and Refugees International has brought attention to the challenges faced by the Rohingya community in India, revealing gross violations of constitutional and human rights. This necessitates a critical examination of India’s refugee policy, its international commitments, and the need for a standardized legal framework.

Key Findings of the Report

1. Human Rights Violations
   
   • A significant number of Rohingya refugees remain incarcerated even after serving their sentences, reflecting a failure to uphold basic constitutional rights.
   • Detention centres, including the Matia Transit Camp, are plagued by dehumanizing living conditions, affecting pregnant women and children.
2. Civil Society Constraints
   
   • Civil society organizations supporting Rohingya refugees are underfunded, with many losing their Foreign Contribution (Regulation) Act (FCRA) licenses. This has curtailed legal aid and advocacy efforts.
3. Lack of Legal Representation
   
   • Lawyers are reluctant to represent Rohingya refugees due to fear of repercussions, leaving many detainees without access to justice.

Rohingya Refugees and International Law

1. Global Context
   
   • The Rohingya, numbering approximately 2.8 million globally, are the world’s largest stateless population, facing decades of persecution in Myanmar.
   • Nearly 22,500 Rohingya refugees currently reside in India, as per the UN High Commissioner for Refugees (UNHCR).
2. Non-Refoulement Principle
   
   • Enshrined in the 1951 Refugee Convention and its 1967 Protocol, the principle prohibits States from returning individuals to places where they may face persecution or torture.
   • This principle, considered customary international law, is binding on all States, including non-signatories to the Convention.
3. Other International Instruments
   
   • India is a party to the International Covenant on Civil and Political Rights (ICCPR), which implicitly prohibits refoulement under Article 7.
   • Similarly, instruments like the Convention on the Rights of the Child and the International Convention on the Elimination of All Forms of Racial Discrimination emphasize non-refoulement obligations.

India’s Position on Refugees

1. Non-Signatory Status
   
   • India is not a signatory to the 1951 Refugee Convention, its Protocol, or other related instruments like the Convention Against Torture.
   • The government maintains that it bears no legal obligation to adhere to the principle of non-refoulement.
2. Domestic Legal Framework
   
   • Refugees are governed under archaic laws such as the Foreigners Act, 1946, and the Passport Act, 1967, which categorize Rohingya as “illegal migrants.”
   • The lack of a dedicated refugee law results in disparate treatment and inconsistent policies across different refugee groups.
3. Judicial Interventions
   
   • The Supreme Court in Mohammad Salimullah & Anr. vs Union of India (2021) upheld the Centre’s stance on deporting Rohingya refugees, citing national security concerns.
   • While Article 21 of the Constitution ensures the right to life, the Centre argues that it does not confer the right to reside or settle in India.

Challenges and Concerns

1. Policy Ambiguity
   
   • India’s absence of a standardized refugee policy has led to preferential treatment of certain refugee groups (e.g., Tibetans, Sri Lankans), while others like the Rohingya face arbitrary detention and exclusion.
2. Exclusion from Citizenship Amendment Act (CAA), 2019
   
   • The CAA excludes persecuted Muslim minorities, including the Rohingya, from its ambit, further marginalizing them.
3. Living Conditions and Legal Aid
   
   • Detention centres lack basic amenities, exacerbating the vulnerability of detainees.
   • Limited access to legal aid and funding restrictions hinder effective representation for the Rohingya.

India’s International Obligations

1. Constitutional Provisions
   
   • Article 51(c) directs the State to promote respect for international law and treaty obligations.
   • The Supreme Court has ruled in cases like Vishaka & Ors. vs State of Rajasthan (1997) that international conventions should guide domestic courts in the absence of specific legislation.
2. Judicial Interpretation of Non-Refoulement
   
   • High Courts have interpreted the principle as integral to Article 21. For example:
     • Ktaer Abbas Habib Al Qutaifi vs Union of India (1998) by the Gujarat High Court.
     • Dongh Lian Kham vs Union of India (2015) by the Delhi High Court.

Recommendations for a Robust Refugee Policy

1. Adopt a Comprehensive Refugee Law
   
   • Enact a national refugee law to standardize treatment across all groups, ensuring compliance with international obligations.
2. Ratify Key International Treaties
   
   • Ratify the 1951 Refugee Convention, the 1967 Protocol, and the Convention Against Torture to strengthen India’s human rights commitments.
3. Strengthen Civil Society Support
   
   • Restore FCRA licenses for organizations supporting refugees to enhance legal aid and welfare measures.
4. Improve Detention Conditions
   
   • Ensure humane conditions in detention centres, as mandated by the judiciary.
5. Promote Regional Collaboration
   
   • Work with South Asian neighbors to develop a regional framework for refugee protection, addressing root causes of displacement.

Conclusion

The Rohingya crisis poses significant moral, legal, and policy challenges for India. Balancing national security concerns with constitutional and international obligations is imperative. A standardized refugee policy, rooted in human rights and guided by India’s constitutional ethos, can help ensure a humane and consistent approach to refugee management. This aligns with India’s historical tradition of sheltering the persecuted and its global image as a responsible democracy.

Former U.S. President Jimmy Carter (1924–2024): A Global Statesman with India Connections 

Source: The Hindu

Syllabus: GS I International personalities

Jimmy Carter, the 39th President of the United States (1977–1981), passed away at the age of 100. Known for his commitment to global peace, human rights, and humanitarian causes, Carter’s presidency and post-White House years stand as a testament to his ideals. His relationship with India, both personal and political, played a pivotal role in shaping Indo-U.S. ties during a transformative period.

Jimmy Carter’s Legacy

Global Humanitarian Efforts

• Carter’s life after the presidency was marked by his work on eradicating diseases, promoting peace, and championing human rights.
• His commitment to serving humanity remained unwavering, as seen in his active participation in diplomatic missions and humanitarian projects well into his 90s.

Key Accomplishments

• Advocated for civil and human rights globally.
• Promoted free and fair elections in emerging democracies.
• Worked tirelessly to provide housing for the underprivileged through initiatives like Habitat for Humanity.

Carter’s India Connection

Historical Context

Carter visited India from January 1-3, 1978, amidst Cold War tensions and growing U.S. interest in re-engaging with the world’s largest democracy. Unlike his predecessors, Carter’s visit was not coupled with a visit to Pakistan, signaling a shift in U.S. policy towards India.

Bilateral Engagement

1. Strengthening Ties
   
   • Carter’s visit was marked by warm receptions, including rare gestures such as a welcome by President Neelam Sanjiva Reddy and large public gatherings.
   • He drew parallels between India’s fight for democracy during the Emergency (1975–77) and the U.S.’s struggle to overcome the Watergate scandal, emphasizing shared democratic values.
2. Cultural and Personal Connections
   
   • Carter’s mother, Lillian Carter, had served as a Peace Corps volunteer in Maharashtra during the 1960s, creating a personal bond with India.
   • This connection resonated during his visit, as Carter acknowledged India’s importance in his family’s history.

Challenges in U.S.-India Relations

1. Nuclear Non-Proliferation Issues
   
   • Carter sought India’s alignment with the Non-Proliferation Treaty (NPT) following India’s 1974 nuclear tests, aiming to leverage India’s need for nuclear fuel for the Tarapur Atomic Power Station.
   • Prime Minister Morarji Desai, a staunch advocate of nuclear sovereignty, firmly resisted pressure, leading to disagreements.
2. Hot Mic Incident:
   
   • During a recess in talks, Carter inadvertently referred to Desai as “pretty adamant” about India’s nuclear stance, highlighting the gap between U.S. expectations and India’s firm position on maintaining nuclear autonomy.
3. Diplomatic Fallout
   
   • While Carter’s outreach was genuine, nuclear discussions revealed fundamental differences in Indo-U.S. perspectives on non-proliferation.
   • Despite this, the visit resulted in productive outcomes in areas like space cooperation and agricultural aid, showcasing a broader framework for bilateral cooperation.

Key Takeaways 

1. Diplomatic Legacy
   
   • Carter’s approach towards India reflects the importance of balancing strategic interests with mutual respect in international diplomacy.
   • His efforts underscore the role of soft power, personal connections, and cultural diplomacy in fostering bilateral ties.
2. India’s Nuclear Sovereignty
   
   • The 1978 visit highlights India’s consistent policy of preserving its strategic autonomy, a cornerstone of its foreign policy.
   • Aspirants should study this episode as a case study in India’s refusal to succumb to external pressures, emphasizing its commitment to self-reliance.
3. India-U.S. Relations: A Historical Perspective
   
   • The visit marks a transitional phase in Indo-U.S. relations, paving the way for future collaborations despite differences.
   • Understanding this period is critical for analyzing the evolution of India-U.S. ties, especially in the context of shifting global power dynamics.

Conclusion

Jimmy Carter’s presidency and his association with India provide valuable lessons in diplomacy, leadership, and humanitarianism. His visit to India, despite its challenges, underscored the importance of dialogue and cooperation in international relations.