UPSC CURRENT AFFAIRS – 5 August 2024 covers important current affairs of the day, their backward linkages, their relevance for Prelims exam and MCQs on main articles
InstaLinks : Insta Links help you think beyond the current affairs issue and help you think multidimensionally to develop depth in your understanding of these issues. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background.
Table of Contents
GS Paper 3: (UPSC CURRENT AFFAIRS – 5 August 2024)
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World Bank Report 2024: Middle-Income Trap
GS Paper 4:
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R. Sreejesh
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Mohanlal Pledges Rs 3 Crore for Wayanad Rehabilitation
Reports in News
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World Trade Statistics 2023
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Niti Aayog: Strategy for the development of Seaweed Value Chain
Facts for Prelims (FFP)
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Global Alliance for Improved Nutrition (GAIN)
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High-speed road corridor projects
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Sovereign green bond
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FASTags
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Axiom-4 mission
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Dark patterns
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Directed Energy Weapons
UPSC CURRENT AFFAIRS – 5 August 2024
GS Paper 2:
World Bank Report 2024: Middle-Income Trap
Syllabus: Indian Economy
Source: World Bank
Context: The World Bank Report 2024 report offers a roadmap to help developing countries escape the Middle-Income Trap, where countries with GDP per capita between $1,136 and $13,845 face growth slowdowns and struggle to reach high-income levels.
What is a Middle-Income Trap?
The World Bank defines the middle-income trap as a situation where a middle-income country struggles to become a high-income economy due to rising costs and declining competitiveness. There are concerns that India may fall into this trap, potentially stalling at a per capita income of USD 5,000-6,000 on its path to becoming a developed economy.
Key Highlights of the Report:
- Wealthy countries often hit a growth slowdown at around $8,000 per capita (10% of U.S. GDP per person).
- Since 1990, only 34 middle-income countries (MICs) have transitioned to high-income status.
- As of end-2023, 108 MICs host 75% of the global population and generate over 40% of global GDP.
- Challenges for MICs include ageing populations, rising protectionism, and the need for faster energy transitions.
- India, a Lower MIC since 2007, has a GNI per capita of $2,540 and may take 75 years to reach one-quarter of U.S. income per capita at current trends.
Why Countries Fall into the Middle Income Trap
- Struggles of Developing Countries: Middle-income nations often lag due to competition with low-wage producers and lack of innovation, stalling growth.
- Structural Shift: Transitioning sectors or growth drivers risk stagnation in per capita income, especially if innovation capabilities are lacking.
- Rising Income Inequality: High-income inequality, exemplified by large wealth gaps, restricts consumer spending and economic progress.
Reasons for India’s Susceptibility to Middle-Income Trap:
| Reason | Description |
| Rising Protectionism | Increasing global protectionism may prevent India from benefiting from hyper-globalization, unlike China, South Korea, and Japan. |
| Structural Transformation | India’s high dependency on agriculture (45-50% of the population) and premature deindustrialization hinder the shift from primary to secondary and tertiary sectors. |
| State Control | Persistent state control, including retrospective taxation and unstable policies, limits private sector growth and investment. |
| Human Capital Formation | The quality of education and employability of graduates is below international standards, with around 55% of graduates deemed unemployable. |
| Climate Change | Frequent climate-related disasters and reliance on monsoon-dependent agriculture pose significant risks, consuming resources and impacting productivity. |
Key Recommendations of the Report:
- Adopt the 3I (Investment, Infusion, Innovation) strategy.
- Stimulate business dynamism by rewarding value-adding firms.
- Provide equal opportunities to women, minorities, and disadvantaged groups.
- Reflect environmental costs in energy prices to enhance economic efficiency.
What more can be done?
| Action Needed | Description |
| Greater Divestitures | Privatize inefficient public enterprises to raise funds, improve productivity, and attract foreign investment. |
| Boost Middle Class | Cut taxes or replace income tax with a consumption tax to increase disposable income and simplify the tax system. |
| Increase Labor Force Participation | Invest in education and skill development; support initiatives like the New Education Policy and Skill India Mission. |
| Accelerate Infrastructure Pipeline | Invest in and speed up the execution of infrastructure projects, such as roads and power, to enhance connectivity and quality of life. |
| Build on Manufacturing Momentum | Enhance India’s role as a global manufacturing hub with initiatives like PLI; improve ease of doing business and labour laws. |
| Boost Private Investment | Attract more foreign and domestic investment through support for infrastructure and manufacturing projects. |
| Implement Structural Reforms | Undertake targeted reforms to improve productivity and competitiveness in sectors like finance, urban planning, and e-commerce. |
| Increase Capital Accumulation | Boost investment to achieve the USD 30 trillion economy goal, with government support for infrastructure and manufacturing. |
Mains Links:
- Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (UPSC 2020)
Prelims Links:
Which of the following gives the ‘Global Gender Gap Index’ ranking to the countries of the world? [UPSC 2017]
(a) World Economic Forum
(b) UN Human Rights Council
(c) UN Women
(d) World Health Organization
Answer: (a)
UPSC CURRENT AFFAIRS – 5 August 2024 GS Paper 4:
P.R. Sreejesh
Syllabus: Examples of Ethics
Source: The Better India
Context: PR Sreejesh’s journey from a small farmer’s son in Kerala, where his father sold a cow to buy him a hockey kit, to winning a bronze medal for India at the Tokyo Olympics is truly inspiring. His career highlights include leading India to victory in numerous tournaments and becoming a key player in the 2024 Paris Olympics.
Ethical Values from P.R. Sreejesh
P.R. Sreejesh embodies dedication, perseverance, and humility. His journey reflects a commitment to excellence, respect for his sport, and gratitude for the support received. His success underscores the importance of hard work, resilience, and maintaining integrity both on and off the field.
Mohanlal Pledges Rs 3 Crore for Wayanad Rehabilitation
Syllabus: Examples of Ethics
Actor Mohanlal, in his role as a Lieutenant Colonel, visited landslide-hit Wayanad and pledged Rs 3 crore for rehabilitation efforts. He inspected affected areas, interacted with rescue teams, and emphasized the scale of the disaster. His Vishwashanthi Foundation will also aid in rebuilding local infrastructure.
Ethical Values of Actor Mohanlal:
- Compassion: Demonstrates empathy by supporting disaster-stricken areas and pledging significant financial aid.
- Responsibility: Takes an active role in disaster relief and recovery efforts.
- Leadership: Leads by example through personal involvement and mobilizing resources for humanitarian causes.
- Commitment: Shows dedication to both his professional duties and community service.
UPSC CURRENT AFFAIRS – 5 August 2024 Reports in News
Reports in News
| Reports | Description |
| Niti Aayog: Strategy for the development of Seaweed Value Chain | Recommendations: Form a National Steering Committee and include seaweed in Priority Sector Lending (PSL). Provide crop insurance and mobilize farmers through Self-Help Groups (SHGs) for Seaweeds. Establish seed banks, processing centres, and marketing centres. |
| Seaweeds are various types of marine plants and macroalgae found in water bodies like rivers and lakes. Seaweed cultivation is part of aquaculture, with the fishing and aquaculture sector contributing 1.5% to India’s GDP. | |
| World Trade Statistics 2023 | The WTO’s “World Trade Statistics 2023” highlights the top five agricultural exporters as the EU, the US, Brazil, China, and Canada. The top ten exporters accounted for 71.9% of global agricultural exports. India ranked 8th, with exports worth $51 billion, making up 2.24% of the total agricultural exports in 2023. |
| The World Trade Organization (founded in 1995, HQ: Geneva, Switzerland) is an intergovernmental organization that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that govern international trade in cooperation with the United Nations System. | |
UPSC CURRENT AFFAIRS – 5 August 2024 Facts for Prelims (FFP)
Global Alliance for Improved Nutrition (GAIN)
Source: DTE
Context: A recent report by the Global Alliance for Improved Nutrition (GAIN) highlights the importance of investing in nutrition within the agri-food sector to reduce gender inequalities, increase productivity, and enhance business resilience.
What is the Global Alliance for Improved Nutrition (GAIN)?
The Global Alliance for Improved Nutrition (GAIN) is a Swiss foundation (launched at the United Nations in 2002) dedicated to addressing global malnutrition. It collaborates with governments, businesses, and civil society to improve nutrition outcomes, particularly for vulnerable populations.
High-speed road corridor projects
Source: BS
Context: The Indian government has approved eight high-speed road corridor projects, spanning 936 km, to enhance logistics efficiency and connectivity across the country.
Key projects include:
- Agra-Gwalior National High-Speed Corridor: An 88 km, 6-lane, access-controlled corridor to be developed on a build-operate-transfer (BOT) mode.
- Kharagpur-Moregram National High-Speed Corridor: A 231 km, 4-lane corridor c to be developed in Hybrid Annuity Mode (HAM).
- Tharad-Deesa-Mehsana-Ahmedabad National High-Speed Corridor: A 214 km, 6-lane corridor on BOT mode.
- Ayodhya Ring Road: A 68 km, access-controlled ring road on HAM.
- Pathalgaon-Gumla Section of Raipur-Ranchi National High-Speed Corridor: A 137 km section on HAM.
- Kanpur Ring Road: A 47 km, 6-lane road in Engineering, Procurement, and Construction (EPC) mode.
- Northern Guwahati Bypass: A 121 km corridor on BOT mode, including a major bridge over the Brahmaputra.
- Nashik Phata-Khed Corridor: A 30 km elevated corridor near Pune on BOT mode.
Sovereign green bond
Source: BS
Context: The second sovereign green bond auction of FY25 received a muted response, with the Reserve Bank of India (RBI) selling only ₹1,697 crore worth of 10-year green bonds at a cut-off rate of 6.90%, against a notified amount of ₹6,000 crore.
- Traders were unwilling to pay a premium (greenium) for the bonds, which signifies the additional value placed on green bonds for their environmental impact.
- The funds from these bonds are intended for public sector projects to reduce the carbon footprint.
FASTags
Source: LM
Context: New rules for FASTags, effective from August 1, mandate that FASTags older than five years must be replaced, and KYC updates are required every three years.
- The rules aim to improve toll payment processes and reduce congestion.
- Key updates include linking vehicle details (registration and chassis numbers) with FASTags, verifying databases, and uploading clear photos of the car’s front and side.
- Additionally, FASTags must be linked to a mobile number.
Axiom-4 mission
Source: TH
Context: India has selected two Indian Air Force Group Captains, for the Axiom-4 mission to the International Space Station (ISS).
- This mission marks the fourth private astronaut mission to the ISS and is part of a joint ISRO-NASA effort envisioned during the Prime Minister’s state visit to the U.S. in June 2023.
- The Indian crew members will undergo training in the U.S. starting the first week of August, preparing to undertake scientific research, technology demonstrations, and space outreach activities aboard the ISS.
- This mission aims to enhance India’s human space program and strengthen ISRO-NASA collaboration.
Dark patterns
Source: TH
Context: A study revealed that 52 out of the top 53 Indian apps use deceptive design practices called dark patterns, affecting user autonomy and informed decision-making.
- These apps, including popular ones like Netflix, Ola, and Swiggy, employ tactics such as privacy deception, interface interference, drip pricing, and false urgency.
- The study highlighted that these problematic apps have been downloaded 21 billion times.
- The most prevalent deceptive pattern is privacy deception, found in 79% of the apps.
- Health-tech apps show the highest incidence of deceptive patterns, followed by travel booking and e-commerce.
Directed Energy Weapons
Source: ORF
Context: The article discusses the advancements and current state of Directed Energy Weapons (DEWs), highlighting their growing importance as countermeasures against autonomous and hypersonic weapons.
- The United States has significantly invested in DEWs, developing systems like high-energy lasers (HEL) and high-powered microwaves (HPM), with various applications ranging from missile defence to disabling drones.
- Countries like China, Russia, and others are also advancing their DEW capabilities.
- India has been investing in DEWs through organizations like DRDO and BEL, working on projects like Tri-Netra and KALI.
Directed energy weapons (DEWs) are defined as electromagnetic systems capable of converting chemical or electrical energy to radiated energy and focusing it on a target, resulting in physical damage that degrades, neutralizes, defeats, or destroys an adversarial capability.
UPSC CURRENT AFFAIRS – 5 August 2024 [PDF]
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