28 September 2024

• Environment: Delhi recorded "Poor" AQI for the first time since mid-June 2024, signalling the onset of the winter pollution season.
• Economy: India's imports from China rose from $70 billion (FY19) to $101 billion (FY24), reviving the "China Shock 2.0" debate on industrial displacement.
• Finance: India's T+0 settlement rollout (same-day trade settlement) was delayed from its original September 2024 target.
• Tourism: World Tourism Day (27 September) highlighted the Paryatan Mitra and Paryatan Didi programme.

GS area: Environment (pollution), Governance

Delhi recorded its first "Poor" AQI reading since mid-June 2024 as September-end crop stubble burning began in Punjab and Haryana.

Key facts:

• AQI categories: AQI 0-50 (Good), 51-100 (Satisfactory), 101-200 (Moderate), 201-300 (Poor), 301-400 (Very Poor), 401-500 (Severe). Delhi often touches "Severe" during October-November.
• PM2.5 source apportionment: Studies by IITM (Pune), NEERI and the Safar system attribute Delhi's winter pollution to: vehicular emissions, crop residue burning (Punjab/Haryana stubble), industry, construction dust and domestic burning. Contributions vary significantly by season.
• CAQM: Commission for Air Quality Management in NCR and Adjoining Areas. Established by the CAQM Act 2021. Replaced the Supreme Court's EPCA (Environment Pollution Control Authority). Powers include banning activities contributing to pollution. Issues Graded Response Action Plan (GRAP) triggers.
• GRAP stages: Stage I (PM2.5 >60 or AQI >201), Stage II (AQI >301), Stage III (AQI >401), Stage IV (AQI >450+). Each stage progressively restricts vehicles, industries and construction.
• Stubble burning: Punjab farmers burn approximately 19-20 million tonnes of paddy straw annually, contributing to Delhi's peak pollution. The Punjab Preservation of Sub-Soil Water Act (2009) delayed paddy transplanting to conserve water, but this compresses the harvest-to-sowing window, making mechanical stubble removal impractical for small farmers.

Static linkage: Air pollution, AQI standards, CAQM, GRAP.

GS area: Economy (trade), Industry

India's imports from China rose from $70 billion in FY2018-19 to $101 billion in FY2023-24, a 44 per cent increase.

Key dimensions:

• China Shock 1.0: The original "China Shock" refers to the impact of China's WTO accession (2001) on US manufacturing: rapid import growth eliminated millions of US manufacturing jobs.
• India's context: India's electronics, chemicals, pharma API (active pharmaceutical ingredients) and solar panels sectors face intense competition from cheaper Chinese goods. Chinese imports have displaced Indian producers in intermediate goods.
• Trade deficit: India's bilateral trade deficit with China is approximately $85 billion (FY24), the largest bilateral deficit India has with any country.
• PLI schemes: The Production Linked Incentive (PLI) scheme across 13 sectors is designed to build India's manufacturing capacity and reduce import dependency. Key sectors: semiconductors, solar PV, mobile phones, pharmaceuticals, textiles.
• Strategic concern: Indian industries have flagged dumping by Chinese state-subsidised companies. India has imposed anti-dumping duties on hundreds of Chinese products.
• Geopolitical complexity: Despite political tensions (LAC standoff since 2020), trade continues. India has not blocked Chinese imports as broadly as the US has.

Static linkage: Trade policy, PLI scheme, India-China economic relations.

GS area: Economy (capital markets)

India's plan to introduce optional T+0 (same-day) stock settlement was delayed beyond September 2024.

Key background:

• Current regime: India completed the shift to T+1 (next-day settlement) for all listed equities in January 2023, ahead of most global markets.
• T+0: Same-day settlement, where shares and funds move between buyer and seller on the day of the trade (rather than the next day).
• Benefits: Reduces counterparty risk, frees up cash faster for retail investors, reduces the margin required on open positions.
• Challenges: Requires all brokers, depositories (NSDL, CDSL), clearing corporations and custodians to be technically ready. Foreign Portfolio Investors (FPIs) operating in different time zones face particular challenges.
• SEBI's phased approach: T+0 was proposed as an optional layer on top of T+1. Both would coexist initially.
• Depositories: NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited) hold dematerialised shares in India's capital market infrastructure.

Static linkage: Capital markets, SEBI, stock settlement infrastructure.

GS area: Economy (industrial policy)

The PLI (Production Linked Incentive) scheme across 13 sectors reported Rs 1.97 lakh crore in investment commitments, Rs 10.8 lakh crore in sales and Rs 8.5 lakh crore in exports as of August 2024.

Key details:

• Sectors: Mobile phones and electronics, pharmaceuticals, medical devices, automobiles and auto components, advanced chemistry cell batteries, textiles (MMF), food processing, telecom and networking products, white goods (ACs, LED lights), specialty steel, solar PV modules, drones and semiconductors.
• Mobile phones: India is now the second-largest mobile phone manufacturer globally (behind China). Apple, Samsung and domestic brands have shifted significant production to India.
• Semiconductors: The India Semiconductor Mission (ISM) under the PLI umbrella attracted Micron (chip assembly-test, Sanand, Gujarat), Tata Electronics and Kaynes Semicon for fabrication and packaging.
• Additionality condition: PLI incentives are paid only on sales exceeding a baseline. Companies must demonstrate incremental production.

Static linkage: Industrial policy, manufacturing, Make in India.

GS area: Economy (tourism), Governance

World Tourism Day (27 September 2024, theme "Tourism and Peace") highlighted India's Paryatan Mitra and Paryatan Didi programme.

Key details:

• World Tourism Day: Celebrated on 27 September each year. Established by UNWTO (World Tourism Organization, a UN agency, headquartered in Madrid).
• Paryatan Mitra and Paryatan Didi: Trained male and female community tourism guides across six pilot destinations. The programme trains local people, particularly women, to serve as official tourism guides, providing livelihood and improving visitor experience.
• Six pilot destinations: Chambal (Rajasthan), Ghats of Varanasi (UP), Kokan (Maharashtra), Hampi (Karnataka), Dholavira (Gujarat) and Apatani Village (Arunachal Pradesh).
• India's tourism context: India ranked 39th in WTTC's Travel and Tourism Competitiveness Index. Foreign tourist arrivals are recovering post-COVID. India's G20 tourism initiatives emphasised responsible travel.
• UNWTO: Headquartered in Madrid. 159 member states. Promotes sustainable and responsible tourism.

Static linkage: Tourism policy, women empowerment, UNWTO.

• Bhagat Singh birth anniversary (28 September 1907): Bhagat Singh, born in Lyallpur (now Faisalabad, Pakistan), was a revolutionary associated with the Hindustan Socialist Republican Association (HSRA). He was hanged on 23 March 1931 in Lahore along with Sukhdev Thapar and Shivaram Rajguru. He famously threw non-lethal bombs in the Central Legislative Assembly in April 1929 to protest the Public Safety Bill and the Trade Disputes Bill, and then chose not to escape to ensure his trial would serve as a political platform.
• LVM-3 and OneWeb: India's LVM-3 (formerly GSLV Mk III) completed its OneWeb commercial satellite launches. This demonstrates ISRO's commercial launch capability. NSIL (NewSpace India Limited) manages commercial launches.