News in Short

Prelims Focussed

1. SAMRIDH Scheme

Introduction:

The Ministry of Electronics and Information Technology (MeitY) recently launched the 2nd cohort of the SAMRIDH Scheme to provide funding and support for tech startups. The scheme is part of India's broader initiative to accelerate innovation under the National Policy on Software Products - 2019.

Key Features:

1.     Startup Accelerators vs. Incubators:

o   Accelerators focus on scaling existing startups quickly through mentorship, capital, and investor connections. These programs typically last 1 to 6 months.

o   Incubators provide long-term support for startups by helping with market research, product development, and business model validation.

2.     SAMRIDH Overview:

o   Launched in August 2021, the SAMRIDH Scheme aims to support 300 tech startups over three years. It is implemented by MeitY Start-up Hub (MSH) and Digital India Corporation (DIC).

o   The scheme provides matching funding support of up to ₹40 lakh, with cohort sizes ranging from 5-10 startups.

3.     Eligibility:

o   The scheme targets accelerators that have been active for more than 3 years, have supported at least 50 startups, and are registered as not-for-profit organizations under Section 8 of the Companies Act 2013 or the Societies Registration Act.

4.     Impact of First Cohort:

o   In the first cohort, 22 accelerators from 12 states supported 175 startups. The second cohort will support an additional 125 startups.

Conclusion:

The SAMRIDH Scheme is a crucial part of India's strategy to foster technological innovation and provide startups with the necessary tools to scale and grow. The scheme’s emphasis on mentorship and capital infusion helps startups achieve product innovation and market expansion.

MCQs for Practice

1. Consider the following statements about the SAMRIDH Scheme:

1.     The scheme provides support to startups in the form of capital, mentorship, and investor connections.

2.     It was launched as part of the National Policy on Software Products, 2019.

3.     The scheme targets startups in the ideation phase and focuses on early-stage development.

Which of the above statements is/are correct?

A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2, and 3

Answer: A) 1 and 2 only

2. What is the main difference between startup incubators and accelerators as per the SAMRIDH Scheme?

A) Incubators provide long-term support, while accelerators focus on quickly scaling existing startups.
B) Incubators provide funding, while accelerators only offer mentorship.
C) Accelerators provide long-term business support, while incubators focus on rapid growth.
D) Both incubators and accelerators focus on early-stage startups.

Answer: A) Incubators provide long-term support, while accelerators focus on quickly scaling existing startups.

2. Vertical Fiscal Imbalance

Introduction:

The 15th Finance Commission noted a significant Vertical Fiscal Imbalance (VFI) in India’s federal structure, where states incur a higher share of expenditures but collect a smaller portion of revenues.

Types of Fiscal Imbalances:

1.     Horizontal Fiscal Imbalance:

o   This occurs when different regions within a country have unequal revenues and expenditures.

2.     Vertical Fiscal Imbalance:

o   VFI arises when the revenue-raising powers of different levels of government, such as the central and state governments, do not align with their expenditure responsibilities.

o   Article 280 of the Indian Constitution addresses VFI by establishing the Finance Commission, which recommends the distribution of tax revenues between the central and state governments.

Key Insights on VFI in India:

1.     VFI Measurement:

o   VFI is calculated by comparing the Own Revenue Receipts (ORR) and tax devolution from the Union government to the Own Revenue Expenditure (ORE) of all states. A ratio of less than 1 implies insufficient receipts to meet expenditure.

2.     Current Scenario:

o   Indian states incur 61% of revenue expenditure but collect only 38% of revenue receipts. Many states have raised concerns and demanded an increase in the tax devolution share to 50% from the current levels.

3.     Challenges with Cess and Surcharges:

o   States argue that the exclusion of cesses and surcharges from the divisible pool reduces the overall resources available for devolution.

Conclusion:

Addressing Vertical Fiscal Imbalance is critical to ensuring fiscal equity between the Union and states. The upcoming 16th Finance Commission will play a pivotal role in determining measures to balance this fiscal disparity.

MCQs for Practice

1. With reference to Vertical Fiscal Imbalance (VFI), consider the following statements:

1.     VFI occurs when the revenue-raising powers of different levels of government do not align with their expenditure responsibilities.

2.     In India, the states collect a higher share of revenue than the central government.

3.     Article 280 of the Constitution establishes the Finance Commission to address VFI.

Which of the above statements is/are correct?

A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2, and 3

Answer: B) 1 and 3 only

2. What is the divisible pool as per the Finance Commission's recommendations?

A) A pool of resources that the central government shares with local governments.
B) A pool of all central taxes that are shared with the states, excluding surcharges and cess.
C) A resource pool that states share among themselves.
D) A fund created for states to finance development projects.

Answer: B) A pool of all central taxes that are shared with the states, excluding surcharges and cess.

3. Brunei and India’s Bilateral Ties

Introduction:

Prime Minister Narendra Modi’s recent visit to Brunei marks the first bilateral visit by an Indian Prime Minister to the Southeast Asian nation, emphasizing India’s focus on strengthening relations with Brunei.

Geographical Overview of Brunei:

1.     Location:

o   Brunei is situated on the northern coast of Borneo Island in Southeast Asia and is bordered by the South China Sea to the north and Malaysia on all other sides.

2.     Geography:

o   The country is divided into two non-contiguous parts by the Malaysian State of Sarawak. Major rivers include the Belait, Pandaruan, and Tutong.

3.     Economic Significance:

o   Brunei is a major oil producer in Southeast Asia and is strategically located with maritime borders shared with China and Malaysia.

Conclusion:

Prime Minister Modi’s visit to Brunei signals India’s growing interest in enhancing bilateral cooperation in energy, trade, and strategic engagement with Southeast Asia, particularly within the framework of India’s Act East Policy.

MCQs for Practice

1. Consider the following statements regarding Brunei:

1.     Brunei is located on the northern coast of Borneo Island in Southeast Asia.

2.     It shares land borders with Indonesia and the Philippines.

3.     The capital city of Brunei is Bandar Seri Begawan.

Which of the above statements is/are correct?

A) 1 and 2 only
B) 2 only
C) 1 and 3 only
D) 1, 2, and 3

Answer: C) 1 and 3 only

2. Brunei is a major producer of which resource in Southeast Asia?

A) Natural gas
B) Coal
C) Oil
D) Timber

Answer: C) Oil

4. Earth’s Third Energy Field - Polar Wind

Introduction:

NASA scientists have detected and measured Earth’s third energy field, known as the ambipolar electric field, as part of the Endurance Mission, offering new insights into the polar wind and atmospheric processes.

Key Concepts:

1.     Ambipolar Electric Field:

o   A weak, planet-wide electric field that counteracts gravity by lifting ions and particles into space. It plays a crucial role in expanding Earth’s atmosphere.

2.     Polar Wind:

o   The polar wind is a steady outflow of charged particles from Earth’s atmosphere, moving at supersonic speeds. Hydrogen ions in the polar wind are pushed into space by an electric field stronger than gravity.

3.     Scientific Discovery:

o   The ambipolar field was found to increase the density of the ionosphere by 271%, helping maintain atmospheric density at higher altitudes.

Conclusion:

The discovery of Earth’s third energy field enhances our understanding of the atmosphere’s interaction with space and could help explain the mechanics of the polar wind, a fundamental component of Earth’s atmospheric dynamics.

MCQs for Practice

1. Consider the following statements about the ambipolar electric field:

1.     The ambipolar electric field counters gravity and helps extend the atmosphere by lifting ions into space.

2.     This electric field is unidirectional and only pulls particles towards Earth's surface.

3.     It is responsible for generating the polar wind, a steady outflow of charged particles into space.

Which of the above statements is/are correct?

A) 1 and 3 only
B) 2 and 3 only
C) 1 and 2 only
D) 1 only

Answer: A) 1 and 3 only

2. What is the significance of the ambipolar electric field in Earth's atmosphere?

A) It increases the density of the ionosphere and helps maintain it at higher altitudes.
B) It lowers atmospheric pressure at the poles.
C) It helps regulate Earth's gravity.
D) It causes Earth's magnetic field to fluctuate.

Answer: A) It increases the density of the ionosphere and helps maintain it at higher altitudes.

5. Helium and Its Role in Rockets

Introduction:

Recently, a Boeing Starliner spacecraft experienced a landing issue due to a helium leak, highlighting the importance of helium in modern rocket technology.

Helium’s Properties and Role:

1.     Helium Overview:

o   Helium is the second most abundant element in the universe and is known for being colorless, odorless, and inert. It does not react with other substances, making it ideal for use in sensitive environments like rockets.

2.     Helium in Rockets:

o   Helium is used to pressurize fuel tanks and ensure a continuous flow of fuel to rocket engines. Its non-reactive nature and low boiling point allow it to remain gaseous even in super-cold environments, such as those required for storing rocket fuel.

3.     Challenges with Helium:

o   Helium leakage is a common issue due to its small atomic size, which allows it to escape through small gaps in storage tanks. However, helium leaks can be easily detected due to the element’s scarcity in Earth’s atmosphere.

Conclusion:

Helium plays a vital role in rocket pressurization systems, ensuring the safe and continuous flow of fuel. However, its prone-to-leak nature poses a challenge for spacecraft design and operation, requiring careful handling and monitoring.

MCQs for Practice

1. Consider the following statements regarding helium's use in rockets:

1.     Helium is used to pressurize fuel tanks and ensure a continuous flow of fuel in rocket engines.

2.     Helium is non-reactive and remains stable even at extremely low temperatures, making it ideal for use in rockets.

3.     Helium leaks are difficult to detect due to the abundance of helium in the Earth's atmosphere.

Which of the above statements is/are correct?

A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

Answer: A) 1 and 2 only

2. Why is helium preferred for use in rockets?

A) Because it is highly reactive and assists in combustion.
B) Because it remains gaseous at very low temperatures and can safely pressurize rocket fuel tanks.
C) Because it is the heaviest gas, providing stability to rocket fuel tanks.
D) Because it can be easily mixed with other chemicals for propulsion.

Answer: B) Because it remains gaseous at very low temperatures and can safely pressurize rocket fuel tanks.