30 June 2023

• Global finance: The Paris New Global Financing Pact concluded with USD 200 billion in additional MDB lending and progress on debt restructuring for the Global South.
• Minerals: India notified a list of 30 critical minerals, establishing the Critical Minerals List for supply chain security.
• Semiconductors: The India-US semiconductor partnership was formalised with Micron Technology's 2.75 billion dollar facility in Ahmedabad receiving state approval.
• Animal husbandry: India's livestock census data and the animal husbandry sector's contribution to agriculture GDP were reviewed.

GS area: International Relations, Economy, Environment

The Paris Summit for a New Global Financing Pact (22-23 June 2023) hosted by French President Macron concluded, with outcomes summarised by 30 June 2023.

• Problem: Developing countries need roughly 2.4 trillion dollars annually for climate mitigation and adaptation and sustainable development, far above what current multilateral development bank (MDB) lending provides.
• Key outcomes:
  • MDBs (World Bank, ADB, AfDB, NDB, IDB, AIIB, EBRD) committed to increase their annual lending capacity by USD 200 billion by 2030 through balance sheet optimisation, new callable capital, and hybrid capital instruments.
  • 100 billion dollars per year climate finance pledge (originally made at COP15 for 2020 delivery, not met until 2022) was extended and reframed.
  • Zambia's debt restructuring under the G20 Common Framework was confirmed, providing a template for other debtor nations (Sri Lanka, Ethiopia, Ghana).
  • Special Drawing Rights (SDRs) reallocation: France pledged to channel 30 per cent of its SDRs to low-income countries. India's position: net SDR recipient in 2021.
• Bridgetown Initiative: Barbados PM Mia Mottley's proposal for a redesigned global financial system with expanded MDB lending and SDR reallocation was partially adopted as a framework for the summit.
• India's role: India hosted G20 in 2023. Its Finance Ministers' discussions on the Global South's financing gap fed into the Paris deliberations.

Static linkage: International relations; international organisations; economy.

GS area: Economy (resources), International Relations

The Ministry of Mines notified a list of 30 critical minerals for India.

• What are critical minerals? Minerals essential to modern economies but with high supply chain risk due to concentration of production in a few countries.
• India's 30 critical minerals: Include cobalt, lithium, nickel, graphite, silicon, titanium, vanadium, germanium, gallium, selenium, beryllium, bismuth, rhenium, strontium, cadmium, tellurium, indium, hafnium, scandium, chromium, and others.
• Why critical:
  • Lithium, cobalt, and nickel are essential for lithium-ion batteries (EVs, energy storage).
  • Cobalt is 70 per cent produced by the Democratic Republic of Congo.
  • Gallium and germanium are used in semiconductors; China produces 60-80 per cent globally.
  • Rare earth elements are used in permanent magnets (EV motors, wind turbines); China controls 85 per cent of processing.
• India's supply: India has significant reserves of rare earth elements in placer deposits (Kerala, Tamil Nadu), chromite (Odisha), and graphite (Arunachal Pradesh). However, processing capacity is limited.
• Government response: National Critical Mineral Mission (proposed); India joined the US-led Minerals Security Partnership in June 2023.

Static linkage: Economy (resources, strategic materials); environment; international relations.

GS area: Economy, Science and Technology

India's semiconductor ambitions received a boost from the India-US joint statement and subsequent state-level approvals.

• Micron Technology: An American company (headquartered in Boise, Idaho). It is the world's third-largest memory chip manufacturer (behind Samsung and SK Hynix). Agreed to invest 2.75 billion dollars for a semiconductor assembly and test facility near Ahmedabad (Sanand region), Gujarat.
• Why assembly and test, not fabrication? Building a semiconductor fabrication (fab) plant requires 10-20 billion dollars, 3-5 years, and a highly specialised workforce. Assembly, Testing, and Packaging (ATP) is a lower-barrier entry point, with investment of 1-3 billion dollars.
• India Semiconductor Mission (ISM): Launched under the MeitY with 76,000 crore rupees outlay to attract semiconductor fabs, display fabs, and ATMP facilities.
• Incentive structure: 50 per cent subsidy on project cost from the central government, plus state government fiscal support.
• India's aspiration: A full semiconductor fab (advanced node) is still years away. TATA Group was reported to be in talks with partners to set up a 300mm wafer fab.

Static linkage: Economy; science and technology; international relations.

GS area: Economy (agriculture), Government Schemes

The 20th Livestock Census data and annual performance review of the sector were referenced in June 2023 government reporting.

• 20th Livestock Census (2019): Total livestock population: 535.78 million (increase of 4.6 per cent from 2012). Cattle population: 192.49 million; buffalo: 109.85 million.
• Contribution: Animal husbandry and fisheries together contribute approximately 30 per cent of agricultural GDP (GVA). Their combined share of total GDP is around 5 per cent.
• Milk production: India is the world's largest milk producer. Production reached 221.06 million metric tonnes in 2021-22.
• PM Matsya Sampada and Pashudhan Sampada: Two flagship schemes for fisheries and animal husbandry respectively.
• Cold chain gap: India loses an estimated 18 per cent of total food (by value) post-harvest. Milk, meat, and eggs are particularly vulnerable. Atmanirbhar Bharat package included investments in cold chain under MOFPI.
• One Health approach: Government of India endorsed the One Health approach (integrating human, animal, and environmental health) following COVID-19 and the risk of zoonotic spillover.

Static linkage: Economy; government schemes; agriculture.

• Kharchi Puja 2023: Kharchi Puja is Tripura's most important tribal festival, celebrated for seven days in July (but preparations and media coverage peaked in late June 2023). It is held at the Chaturdasha Devata temple in Agartala and is associated with the worship of 14 deities of the royal pantheon of the former Tripura kingdom. The state observes a government holiday.
• CDRI headquarters agreement: The Coalition for Disaster Resilient Infrastructure signed a headquarters agreement with India in June 2023. CDRI was launched by India at the UN Climate Action Summit in 2019. Headquarters are in New Delhi. The agreement gives CDRI an international legal identity similar to an international organisation.
• Indian startup ecosystem: India was ranked 3rd globally by total unicorn count. The country had 108 unicorns (companies with a valuation over 1 billion dollars) as of mid-2023. The US and China rank first and second. Bengaluru is home to the highest concentration of Indian unicorns.