TNPSC CURRENT AFFAIRS – 26.07.2024

1. GEOGRAPHY

NITISH REPEATEDLY RAISED BAGMATI RIVER FLOODING CONCERNS WITH NEPAL EX-PM

• The R. Bagmati, which is currently in spate, is one of the major crossborder rivers that flow through the plains of Bihar, carrying a large amount of water from the upper reaches of the Himalayas in Nepal
• The Bagmati flows from Nepal and crosses the Bihar districts of Darbhanga, Sitamarhi, Sheohar, Muzaffarpur, and Khagaria, before meeting the river Kamala in Samastipur.
• Issue – Floods in Bihar
• Neither India nor Nepal have shown any urgency to resolve the issue despite the advocacy of the Bihar government
• In the past, the river had a different course, draining directly into the Ganga, but it is the new course that has created the flooding issue
• The worst flood it caused occurred in 1994, but the problem has continued to recur, leaving the State government anxious for some way to resolve the issue
• Bihar has been urging Nepal to create the infrastructure needed to prevent the annual flooding that takes place in the State because of the cross-border river systems. Nepal, Bhutan, and Bangladesh share a large number of cross-border rivers that are important for States like Assam, Bihar, Uttar Pradesh, West Bengal, Meghalaya, and Tripura.

2. ECONOMY

INDIA’S GARMENT EXPORT WOES SELF – INFLICTED REPORT

• Issues Affecting India’s Garment Sector India’s garment sector faces several critical issues that hinder its export growth
• High Duties and Barriers on Raw Material Imports
• Import Restrictions: High duties and complex import restrictions on synthetic fabrics make it hard to obtain quality materials at competitive prices.
• Quality Control Orders (QCOs): Recent QCOs have increased costs by forcing reliance on more expensive domestic options.
• Complex Customs and Trade Procedures – Archaic Procedures: Outdated procedures by the Directorate General of Foreign Trade and Customs add administrative burdens and increase costs.
• Time and Money Wastage: Indian firms waste significant resources navigating these complex procedures.
• Domestic Vested Interests
• Market Domination: Domestic firms controlling raw materials like polyester and viscose fibre push up prices.
• Lack of Competitive Pricing: Reliance on expensive domestic supplies makes Indian garments less competitive globally. 
• Ineffective Production-Linked Incentive (PLI) Scheme
• Lack of Traction: The PLI scheme launched in 2021 has failed to attract significant investment.
• Investor Disinterest: The scheme hasn’t addressed core issues, leading to limited investor interest.
• Rising Imports of Garments and Textiles – Increasing Imports: Imports have been steadily rising, reaching $9.2 billion in 2023.
• Foreign Competition: The entry of foreign brands could further impact domestic manufacturers.
• Comparative Performance with Competitors
• Stagnant Export Growth: India’s garment exports were $14.5 billion in 2023-24, lower than $15 billion in 2013-14, while Vietnam and Bangladesh saw significant growth.
• China’s Dominance: Despite a decline, China exported $114 billion of garments in 2023.

3. ENVIRONMENT

KERALA IMPOSES CONTAINMENT MEASURES AS 14 YEAR OLD BOY DIES OF NIPAH INFECTION

• The resurgence of the Nipah virus in Kerala, particularly in the Malappuram district, has prompted the state government to take several measures to contain the outbreak and prevent further spread.
• Immediate Response and Containment Measures
• Containment Zones: This includes restricting movement in and out of these areas to prevent the virus from spreading to other regions.
• Surveillance and Monitoring: Health authorities are closely monitoring individuals who have been in contact with patient zero.
• Testing and Isolation: Samples from high-risk contacts are being tested for the Nipah virus. Medical Interventions
• Monoclonal Antibodies: The patient was administered monoclonal antibodies procured from Australia by the Indian Council of Medical Research (ICMR).
• These antibodies are designed to neutralize the virus, but they need to be administered within five days of the onset of symptoms to be effective.
• Intensive Medical Care
• Long-term Strategies
• Research and Development: The ICMR and other health agencies are conducting ongoing research to better understand the Nipah virus and develop more effective treatments and preventive measures. 
• Strengthening Healthcare Infrastructure: The state government is working on strengthening healthcare infrastructure to better handle such outbreaks in the future.
• This includes improving diagnostic facilities, increasing the availability of medical supplies, and training healthcare workers.
• Lessons from Previous Outbreaks – Experience from 2018: Kerala has previously dealt with a Nipah virus outbreak in 2018, which claimed 17 lives.
• The experience from that outbreak has helped the state develop protocols and strategies to manage the current situation more effectively.
• Community Engagement: Engaging with local communities and ensuring their cooperation is crucial for the success of containment measures.
• The government is working closely with community leaders and local organizations to ensure compliance with containment measures and to provide support to affected families

4. ECONOMY

ALLOW FARMERS TO BENEFIT FROM HIGHER GLOBAL PRICES SAYS CEA

• Export Bans and International Prices:
• Recommendation: Farmers should be allowed to benefit from higher international prices, and food export bans should be used only under exceptional circumstances.
• Rationale: Allowing farmers to take advantage of higher international prices can lead to better income for them. Ad hoc export bans can cause significant losses to farmers, which are harder to endure compared to consumers adjusting their consumption patterns.
• Substitution Effects: Example: If sugar prices rise, consumers can switch to alternatives like jaggery or reduce their sugar consumption. This substitution effect can mitigate the impact of price increases on consumers.
• Policy Implication: The government should allow these natural substitution effects to play out before intervening in the market to address domestic supply concerns.
• Significance of Allied Sectors: Allied Sectors: The CEA highlighted the growing importance of allied sectors such as animal husbandry, dairying, and fisheries in enhancing farmers’ income.
• Diversification: These sectors provide additional income streams for farmers and contribute to the overall resilience and sustainability of the agricultural economy.

5. BILATERAL

INDIA MAY GAIN FROM CHINESE FDI

• India’s Economic Strategy: Navigating the China Conundrum
• Context: Chief Economic Adviser (CEA) V. Anantha Nageswaran has suggested that India could benefit from replacing certain imports with investments from China. This strategy aims to boost Indian manufacturing and integrate India into the global supply chain, leveraging the ‘China plus one’ sourcing approach adopted by advanced economies.
• Background: China Plus One Strategy: This strategy involves companies diversifying their supply chains to include countries other than China, reducing dependency on a single source.
• India’s Trade Deficit with China: India has a significant trade deficit with China, importing more than it exports to the country.
• Current Policy: Investment Restrictions: In 2020, India imposed restrictions on investment flows from China to protect Indian firms from opportunistic takeovers during the COVID-19 pandemic.
• CEA’s Proposal: Replace Imports with Investments: The CEA suggests that India could benefit more by replacing some well-chosen imports with investments from China. This could help in:
• Boosting Domestic Manufacturing: Investments could lead to the development of domestic manufacturing capabilities.
• Creating Domestic Know-How: Over time, this could lead to the transfer of technology and expertise to Indian firms.
• Complex Economic Relations: The CEA acknowledges the complexity of India-China economic relations and the challenges in policy choices.
• Advantages of FDI from China: Economic Integration: Integrating into China’s supply chain or promoting FDI from China could help India benefit from global supply chain diversification.
• Reducing Trade Deficit: FDI could be more advantageous than relying on imports, as it could help reduce the widening bilateral trade deficit.
• Risks and Considerations: Strategic Risks: There are potential risks associated with increased Chinese investments, including concerns over economic and strategic dependencies.
• Balancing Choices: The CEA emphasizes that policy choices are not straightforward and involve selecting between less-than-ideal options.

ONE LINER

1. Over 6 lakh illiterate people to undergo literacy training in T.N under New India Literacy Programme or Puthiya Bharatha Ezhutharivu Thittam 2022-2027. Krishnagiri tops with highest enrolment in the literacy programme
2. The Central Board of Direct Taxes  (CBDT) has awarded the Taxnet 2.0 project to Bharti Airtel Ltd. To provide advanced network connectivity, facility management