25 August 2024

• Diplomacy: Prime Minister Modi was on a historic state visit to Poland and Ukraine. The Ukraine visit, confirmed for 23 August 2024, was India's first PM-level visit since independence. India provided four BHISHM Cubes of medical supplies.
• Economy: the 10th anniversary of PM Jan Dhan Yojana was approaching. The scheme had crossed 500 million (52 crore) accounts by July 2024.
• Defence: the Unified Pension Scheme, announced for central government employees from April 2025, was generating policy debate as a third option alongside the Old Pension Scheme and the National Pension System.
• Environment: Chile's Atacama salt flat, the world's driest desert, is sinking at 1 to 2 cm annually due to brine extraction for lithium mining.

GS area: International Relations

Prime Minister Modi's visit to Ukraine (23 August 2024) was the first by an Indian Prime Minister since Bangladesh became independent in 1971:

• Context: India has maintained a carefully neutral position on the Russia-Ukraine war, abstaining on multiple UN resolutions and refusing to condemn Russia explicitly. This posture reflects India's dependence on Russian defence supplies and energy, its non-alignment tradition and its commercial relationships.
• BHISHM Cubes: India provided four Arogya Maitri Disaster Management Cubes (BHISHM is the brand name). These are modular field hospitals capable of treating 200 casualties. Relevant for prelims: India is using humanitarian assistance as a diplomacy instrument.
• India-Ukraine trade: India's main export to Ukraine is pharmaceuticals. About 18,000 Indian students study in Ukraine (mainly medicine). India recognised Ukraine's independence in December 1991.
• Signalling: the visit signalled that India wants to play a mediator role. Modi had met Putin in Moscow in July 2024, the sequence (Moscow then Kyiv) was deliberate signalling of balance.
• India's neutrality: India's position is that a diplomatic solution must be found consistent with the UN Charter and the principles of territorial integrity and sovereignty.

Static linkage: India's foreign policy, Russia-Ukraine conflict, India's strategic autonomy.

GS area: Economy, Government Schemes

PM Jan Dhan Yojana (PMJDY) was approaching its tenth anniversary (launched 28 August 2014). By July 2024:

• Account count: 52 crore (520 million) accounts, crossing the 500 million mark.
• Average deposit growth: 4.12 times since March 2015. Zero-balance accounts fell from 8.52 crore (March 2015) to 4.26 crore.
• Women account holders: over 55 per cent of accounts.
• Rural and semi-urban accounts: 67 per cent of all accounts are in rural or semi-urban areas.
• RuPay cards: approximately 340 million issued, each with Rs 2 lakh accident insurance.
• Banking access: nearly 100 per cent of villages now have a banking outlet within 5 km.
• JAM architecture: PMJDY is the "J" in the JAM trinity (Jan Dhan-Aadhaar-Mobile) that enables Direct Benefit Transfer. DBT prevents leakage by sending cash directly to beneficiary accounts.
• What PMJDY added: accounts with zero minimum balance, overdraft facility (up to Rs 10,000 for eligible account holders), accidental insurance via RuPay cards and life insurance cover.

Static linkage: financial inclusion, DBT, government welfare delivery.

GS area: Economy, Governance

The Cabinet approved the Unified Pension Scheme (UPS) for central government employees, effective 1 April 2025:

• Background: the National Pension System (NPS), introduced in January 2004 for new central government employees, is a defined-contribution scheme. Employees and the government contribute to a fund that is market-linked. Retirement corpus depends on market performance.
• Old Pension Scheme (OPS): was a defined-benefit scheme offering a guaranteed 50 per cent of last-drawn pay as monthly pension. It was discontinued for new recruits in 2004.
• UPS structure: assured pension of 50 per cent of average basic pay from the last 12 months of service for employees with at least 25 years of service. Assured family pension of 60 per cent of the retiree's last pension. Minimum assured pension of Rs 10,000 per month for those with at least 10 years of service. Inflation indexing (dearness allowance).
• Lump sum at retirement: 1/10th of monthly (pay + dearness allowance) per 6 months of service. In addition to gratuity.
• Based on: T.V. Somanathan Committee (2023) recommendations.
• Political context: several states had already reverted to OPS. UPS is the Centre's response, offering guaranteed benefits without reverting to fully unfunded OPS.

Static linkage: pension reform, government finance, social security.

• Atacama salt flat subsidence: the Atacama Desert in northern Chile receives less than 1 mm of rain annually in some areas, making it the world's driest non-polar desert. The Atacama salt flat sits at 2,400 to 4,500 metres elevation. Lithium brine extraction is causing it to sink at 1 to 2 cm per year. Chile has the world's largest lithium reserves and is the second-largest producer (after Australia).
• India's position on Russia-Ukraine at UN: India abstained on UN General Assembly Resolution ES-11/1 (March 2022, demanding Russia's withdrawal) and multiple subsequent resolutions. India's foreign minister stated that India is on the side of peace and diplomacy.
• US-India relations stability: bilateral trade reached USD 118.28 billion in 2023-24. The US designated India a Major Defense Partner in 2016. Foundational military agreements: LEMOA (2016), COMCASA (2018) and BECA (2020). India's Strategic Trade Authorisation Tier 1 license (2018) allows access to advanced US dual-use technology.