Daily Current Affairs : 11th July 2023

Daily Current Affairs for UPSC CSE

Topics Covered

1. Global South
2. Wetlands
3. Urea and Nano Urea
4. Semi conductor
5. Facts for Prelims

1 . Global South

Context: The unwillingness of many leading countries in Africa, Asia and Latin America to stand with NATO over the war in Ukraine has brought to the fore once again the term “Global South.”

What is Global South?

• The Global South refers to various countries around the world that are sometimes described as ‘developing’, ‘less developed’ or ‘underdeveloped’. Many of these countries — although by no means all — are in the Southern Hemisphere, largely in Africa, Asia and Latin America.
• In general, they are poorer, have higher levels of income inequality and suffer lower life expectancy and harsher living conditions than countries in the “Global North” — that is, richer nations that are located mostly in North America and Europe, with some additions in Oceania and elsewhere.
• Background of Global South- The term Global South appears to have been first used in 1969 by political activist Carl Oglesby.  But it was only after the 1991 breakup of the Soviet Union — which marked the end of the so-called “Second World” — that the term gained momentum.

Geopolitical Significance of Global South

• The term ‘Global South’ is not geographical. Rather, its usage denotes a mix of political, geopolitical and economic commonalities between nations.
• By 2030 it is projected that three of the four largest economies will be from the Global South — with the order being China, India, the U.S. and Indonesia. Already the GDP in terms of purchasing power of the Global South-dominated BRICS nations — Brazil, Russia, India, China and South Africa — surpasses that of the Global North’s G-7 club. And there are now more billionaires in Beijing than in New York City.

What are the challenges before Global South?

• The great power rivalries impacting the decision-making process at the global level. For instance, the Ukraine war significantly affected the decision-making process at the recently concluded G-20 Foreign Ministers’ Summit
• The second issue is the need to carry out a reform in the multilateral decision-making processes.
• The third issue which requires attention is the need to reinterpret normative idioms in global politics. The Global North is continuing its hegemonic practice of imposing normative idioms, thus disrupting the functioning and cohesiveness of the Global South
• Global South requires more urgently is an adequate energy supply at an affordable price.  The depletion of energy supply to the Global South countries affects other sectors of the economy.
• The most important problem confronting the Global South in the context of energy security is ensuring a sustainable energy transition. Since energy transition is a costly affair involving technology and finance, the countries of the Global South are the hardest hit in this regard.
• The countries of the Global South are facing the adversarial consequences of climate change largely due to the historical polluters of the Global North.  
• Another critical issue that needs greater attention from the Global South’s perspective is the need to reform the United Nations Security Council (UNSC) along with other multilateral bodies to ensure equitable representation from the Global South.
• The digitalisation of the global economy also offers new challenges to the Global South. The protectionist measures the Global North is pursuing despite the coming up of the World Trade Organization (WTO) is also a cause of concern for the Global South. In this regard, the existing multilateral institutions like the G-7 and G-20, where the Global South countries have fair representation, need to be revitalised to address global issues more democratically.

India’s approach to Global South

• India’s rich history as the leader of the Non-Aligned Movement and its economic and geopolitical clout in global politics are propelling New Delhi to play a greater role in global geopolitics.
• Being the leader of the Global South, India provides a voice to the Global South Movement. Whether on the question of climate change, energy transition, taking a stand on normative issues or protecting the Global South’s interest, India played a proactive role in international forums over the years.
• By giving voice to the Global South countries, India helped in bringing out an alternative narrative to global geopolitics. India is the forerunner in global and sustainable energy transitions
• The issue of ensuring equity and climate justice along with access to technology, to also democratising energy governance in the global arena, have been some of the core concerns of India over the years.
• Some of the significant contributions to the arena of energy transition framework are International Solar Alliance and the push to hydrogen-based fuel.
• Over the years, India provided technical assistance to the countries of the Global South in harnessing solar energy and hydrogen-based fuel.
• India’s approach to democratising international relations and reforming the United Nations has been consistent with the demand of the Global South over the years.
• Global South is currently facing a major identity crisis. The crisis mainly emanates from historical experiences, Cold War legacies, and issues relating to supply chain securitisation. The post-Covid world order and the Ukraine war further aggravated the problem for Global South.
• India is the largest and oldest democracy in the world, often called the “mother of democracy”.  The tradition of Sabha and Samiti as part of the ancient Panchayat System of governance is an apt reflection of the democratic traditions of India rooted in history. As part of democracy promotion activities, India over the years has been providing technical assistance to countries of the Global South for conducting successful elections.
• Similarly, India rejects the imposition of democracy from above as the Euro-Atlantic system pursues. On the other hand, India strongly emphasizes the socio, economic-cultural context, and institutional dimensions in the functioning of democracy. 
• Way forward– The concern of global multilateral bodies is to ensure equity in the global decision-making process rather than being hostage to the whims of the Global North. The impetus that the Global South movement got from the Non-Aligned Movement (NAM) and its policy of “positive neutrality” needs to be recrafted to ensure a better bargaining strategy with the Global North in the conduct of international negotiation. Thus, the core goals of the global multilateral negotiation process should be aimed at ensuring equity and democratizing the decision-making process in the conduct of international relations.

2 . Wetlands

Context:  The Supreme Court recorded that the number of wetlands in the country has expanded from ₹2.01 lakh to ₹2.31 lakh since 2017 and sought the Centre’s response on a plea to protect the enhanced wetland areas which act as a natural protection from floods.

What are Wetlands?

• Wetlands are areas where water covers the soil, or is present either at or near the surface of the soil all year or for varying periods of time during the year, including during the growing season.
• These unique habitats include mangroves, peatlands and marshes, rivers and lakes, deltas, floodplains and flooded forests, rice-fields, and even coral reefs.  
• Features of Wetland- Water saturation (hydrology) largely determines how the soil develops and the types of plant and animal communities living in and on the soil. Wetlands may support both aquatic and terrestrial species. The prolonged presence of water creates conditions that favor the growth of specially adapted plants (hydrophytes) and promote the development of characteristic wetland (hydric) soils.

TYPES OF WETLANDS

• There are many different types of wetlands, each determined by its hydrology, water chemistry, soils, and the plant species found there. Wetlands may be characterized as dominated by trees, shrubs, or herbaceous vegetation. They may be fed by precipitation, runoff, or groundwater, with water chemistry ranging from very acidic to alkaline.
• Marshes are wetlands that are permanently flooded or flooded during high water periods at the edges of rivers, streams, lakes, or ponds. Marshes can be subcategorized into emergent marsh and hemi-marsh.
• Emergent marsh is the marsh found around shorelines out to relatively shallow water and is generally characterized by up to 100% cover with emergent plant species.
• Hemi-marsh is found in deeper water and is characterized by an open mix of emergent and/or floating-leaved vegetation interspersed with a submersed plant community.
• Sedge meadows (or wet meadows) are wetlands with permanently or near-permanently saturated soils. They may form a transitional zone between marshes and other wetlands with less-saturated soils, or occur in wet depressions and swales or around groundwater discharge zones.
• Wet prairie is an ecosystem that is usually intermediate in wetness between sedge meadows and mesic prairies.
• Fens and seeps are wetlands that are fed by groundwater that “seeps” out to the soil’s surface. The type of vegetation found within these wetlands is dependent upon the water chemistry and pH level.
  • Fens are typically alkaline from groundwater emerging from calcareous or dolomitic soils or bedrock zones, and they contain a layer of peat formed from dead plant material.
  • Seeps are typically found along the base of slopes or glacial moraines where water emerges from saturated soils or a spring.
• Bogs are basin wetlands for which precipitation is the only source of water; they are typically not fed by surfacing groundwater or streams.
• Swamps are wetlands dominated by woody vegetation that typically have standing water during at least certain times of the year. They are often found in low-elevation floodplains along rivers or slow-moving streams. Unlike bogs, they are a nutrient-rich environment.

What are the Values and benefits of Wetlands?

• Wetlands as source of water– Main supply of freshwater comes from an array of wetlands. Groundwater contained in aquifers accounts for over 95% of available freshwater and is the most critical source of drinking water and irrigation. Several wetlands help soak rainfall and recharge groundwater.
• Wetlands as flood and storm buffers- In the upper reaches of a basin, wetlands act as sponges absorbing rainfall and snowmelt and allowing water to percolate slowly into the soil. Floodplains of rivers serve as natural storage reservoirs enabling excess water to spread out over a wide area reducing its depth and speed. Coastal wetlands like mangroves, coral reefs, mudflats and estuaries can limit damaging effects of storm surges and tidal waves by acting as physical barriers. Mangroves and coastal marshes help bind shoreline and reduce erosion.
• Wetlands products– Sustainably managed wetlands can provide a range of plants, animals and mineral products. Nearly two-thirds of fish, one of the primary sources of animal protein, is sourced from coastal wetlands. Over three-fourth of rice in Asia is produced in wetlands. Honey is collected from many mangrove swamps, including Sundarbans. Several wetland plants have medicinal properties. Wetlands also provide a source of livelihood to a large population especially those inhabiting their shorelines.
• Wetlands as Water Purifiers- Wetlands help in purifying water by locking up pollutants in their sediments and vegetation. High level of nutrients as phosphorus and nitrogen, commonly associated with agricultural runoff, can be significantly reduced by wetlands. Many wetland plants can remove toxic substances that come from pesticides, industrial discharge and mining. Tissues of floating plants such as Water Hyacinth, Duck weed and Azolla can store iron and copper from wastewater. However, continuous waste discharge beyond carrying capacity of wetlands can lead to environmental disasters.
• Wetlands for recreation and Tourism– The natural beauty and diversity of plant and animal life in wetlands make them ideal destinations for recreation and tourism. However, irresponsible tourism can create pressures on wetlands.
• Wetlands for education and research– Wetlands provide excellent opportunities for education and research on aquatic ecosystems. The diversity of habitats, the complexity of ecosystem processes and broad social and cultural connections make them suited for multi-disciplinary studies on nature-society interactions.
• Wetlands and climate Change- Wetlands, as several other ecosystems, are vulnerable to climate change. These ecosystems, however, can help mitigate and adapt to a changing climate. Some wetlands such as mangroves and salt marshes act as carbon stores, thereby preventing the release of dangerous greenhouse gases into the atmosphere. As variability of water availability is likely to increase in future, the ability of wetlands to absorb and retain water and moderate floods and storms are essential functions that can help buffer impacts of climate change. Conserving wetlands is also essential for securing habitat of aquatic species threatened by changing climate.
• Wetlands as Habitat for migratory birds- Nearly two thousand bird species make regular seasonal movements, travelling thousands of miles between breeding and non-breeding areas to escape the harsh winters of the polar and temperate regions. Migrating birds use wetlands as stopover sites for feeding, resting and breeding. Indian wetlands connect the Central Asian and East Australasian Flyways.
• Wetlands as Biodiversity Hotspots– Several wetlands are habitats of a number of endemic and highly threatened to near threatened species.

What are the threats to Wetlands?

• Alteration of natural hydrological regimes- Water regimes govern biodiversity and ecosystem services of wetlands. Alteration of natural hydrological regimes often leads to reduced water availability, altered hydro-period, loss of connectivity with biodiversity habitats, impeded nutrient exchange and other processes which significantly enhance their degradation.
• Catchment degradation – The water holding capacity of wetlands plays a crucial role in determining its ability to regulate flow regimes, cycle nutrients and support biodiversity. Being depositional in nature, wetlands act as sediment traps, which in the long run plays a key role in their succession. However, catchment degradation accelerates sedimentation rates, thereby, risking sustenance of ecosystem processes and services. Similarly, the runoff from cropped area of the catchment loads nutrient, resulting in eutrophication.
• Pollution– Increasing urbanisation without the development of adequate waste management infrastructure has led wetlands located within urban and the peri-urban areas to become waste receptacles. Agricultural intensification and the increased use of chemical fertilisers have resulted in negative impacts on the water quality within rural wetlands.
• Invasive Species- Most of the inland wetlands of India have been invaded by exotic species, which have acquired nuisance proportions considerably influencing the native biota and habitat conditions.
• Over harvesting of resources- Owing to high livelihood dependence, wetlands are often subjected to over-harvesting of resources and modification for enhancing provisioning services such as wood, fish, water, etc. at the cost of regulating and cultural services. Uses of harmful fishing practices, such as small mesh size nets, are prevalent in a majority of inland wetlands. Often sustainable yield for a particular wetland is not known and at times ignored by stakeholders. Wetland biodiversity and wider food webs are also put under stress by loss through by catch. Varying inundation regimes are often modified to suit agriculture and aquaculture uses.
• Unregulated tourism– Tourism is an important driver of economic growth. Wetlands, an essential part of tourism experiences, are likely to see an increase in touristic pressure in the times to come.
• Climate change- Global climate change has emerged as an important driver of loss and degradation of wetlands, especially high-altitude and coastal wetlands. Modeling simulations indicate that about 84 percent of coastal wetlands in India are at risk due to a one-meter sea level rise. Inland wetlands are at risk from alteration in hydrological regimes, eutrophication, and algal blooms that are likely to result from increasing temperatures.

What are the consequences of loss of Wetlands?

• Loss of Wetlands drives biodiversity loss, water and food shortages, devastating floods and fires, coastal subsidence and erosion. It puts the most vulnerable communities at risk of water-related disasters, exacerbated by climate change.

Conservation of Wetlands

• Ramsar Convention- The Convention on Wetlands is the intergovernmental treaty that provides the framework for the conservation and wise use of wetlands and their resources. It came into force on 21 December 1975, when it was ratified by enough nations. It provides for national action and international cooperation regarding the conservation of wetlands, and wise sustainable use of their resources. Ramsar identifies wetlands of international importance, especially those providing waterfowl habitat.
• India is one of the Contracting Parties to Ramsar Convention, signed in Ramsar, Iran, in 1971. India signed it on 1^st Feb 1982.
• At present India has 75 Ramsar sites covering an area of 13,26,677 ha in the country  

3 . Urea and Nano urea

Context: Union Minister for Chemicals and Fertilizers Manukh Mandaviya says a special package estimated at ₹3.7 lakh crore for farmers have to be brought in as the use of fertilizers has become unbalanced in the country.

Urea

• Urea is the most important nitrogenous fertilizer in the market, with the highest Nitrogen content (about 46 percent). It is a white crystalline organic chemical compound.
• Urea is neutral in pH and can adapt to almost all kinds of soils. It is a waste product formed naturally by metabolizing protein in humans as well as other mammals, amphibians and some fish. Urea is widely used in the agricultural sector both as a fertilizer and animal feed additive.
• The main function of Urea fertilizer is to provide the plants with nitrogen to promote green leafy growth and make the plants look lush.
• Urea also aids the photosynthesis process of plants. Since urea fertilizer can provide only nitrogen and not phosphorus or potassium, it’s primarily used for bloom growth.

Advantages of Urea Fertilizer

• Urea has the highest nitrogen content (46.6%). Higher nitrogen content in urea results in freight and packing.
• High level of nutrients. High levels of nitrogen are readily available; 1 kg of urea is equivalent to 2 kg of ammonium sulfate;
• The cost of production of urea is relatively low.
• It doesn’t change the pH of the soil.
• Urea can be used for all types of soils.
• Urea is not subject to fire on explosion hazards, as in ammonium nitrate and hence there is no risk in the storage of the urea.
• Abundant raw materials. Chemical fertilizers are made from natural mineral resources such as oil, gas, coal, phosphate rock, and other raw materials. These raw resources are abundant and have great potential for use.
• Providing each plant with relevant elements needed urea sustains plant life.

Disadvantages of Urea

• Urea can be used only after 4-5 days of transformation at normal temperature. Most of the nitrogen is easily volatilized in the process of ammoniation. Generally, the actual utilization rate is only about 30%. If urea is applied in alkaline soil and soil with high organic matter content, the loss of nitrogen will be faster and more. Moreover, urea is easy to be consumed by weeds.
• Urea is very soluble in water and hygroscopic and hence requires better quality package than ammonium sulphate.
• The fact that urea decomposes even at low temperatures, generating NH₃ and CO₂, makes it less stable than other nitrogenous fertilizers. There is significant loss as a result of NH₃ and CO₂ production.
• Since the impurities are hazardous to some crops, especially citrus fruits, urea that has impurities in excess of 2% cannot be utilized as a fertilizer.
• It causes increased ammonia concentrations in the soil, which makes it even more acidic and prevents the soil from being naturally fertile.
• During production, hazardous pollutants are released by urea. Pollutant gas emissions from the industrial process enter the atmosphere.
• It is simple to harm fertilizers by using too much urea. Because urea contains a lot of nitrogen, it shouldn’t be used in excess to prevent waste and harm to fertilizers.
• If urea is applied to alkaline soil or soil that has a lot of organic matter, nitrogen will be lost more quickly and completely. Weeds can also easily consume urea.
• Urea must be applied in advance as it takes long period of to start working.
• Government has planned to to end import dependency on urea by 2025 and replace it with nano urea and other alternate forms of urea. Centre’s effort is to reduce import dependency on fertilizers, especially in view of the steep increase in prices after the Ukraine crisis and the COVID-19 pandemic

What are the major components of the package announced recently for farmers?

• Special package worth ₹3,70,128.7 crore is announced for the farmers. There are four components in this package.
• The second component is the Prime Minister’s Programme for Restoration, Awareness Generation, Nourishment, and Amelioration of Mother Earth (PM-PRANAM) scheme, which is for the balanced use of chemical fertilizers.  
• The third component is to provide Market Development Assistance (MDA) of ₹1,500 per metric tonne to support marketing of organic fertilizers, produced as a by-product from bio-gas plants/compressed bio-gas (CBG) plants set up under GOBARdhan scheme.
• The fourth component is to introduce sulphur coated urea as Urea Gold. This will address sulphur deficiency for the soil in the country and improve our crop productivity.

Nano Urea

• Nano Urea is a nanotechnology based revolutionary Agri-input which provides nitrogen to plants. When compared to conventional urea prill, it has a desirable particle size of about 20-50 nm and more surface area (10,000 times over 1 mm urea prill) and number of particles (55,000 nitrogen particles over 1 mm urea prill).
• IFFCO’s Nano Urea contains nitrogen, an element critical for plant development, in the form of granules that are a hundred thousand times finer than a sheet of paper. At this ‘nanoscale, which is about a billionth of a meter, materials behave differently than in the visible realm.

Benefits

• Nano Urea is produced by an energy efficient environment friendly production process with less carbon footprints.
• Increased availability to crop by more than 80% resulting in higher Nutrient Use efficiency.
• Its application to crops as foliar fertilization enhances crop productivity to the tune of 8% with commensurate benefits in terms of better soil, air and water, and farmers profitability.

4 . Semi-Conductor

Context: The Taiwan-based Hon Hai Technology Group, better known as Foxconn, pulled out of a $19.5-billion semiconductor joint venture with the Vedanta Group to “explore more diverse development opportunities”.

Background of the news

• Lead Apple supplier and global manufacturing powerhouse Foxconn has pulled out of a $19.5 billion joint venture project with Indian conglomerate Vedanta that would have brought semiconductor and display manufacturing to the Indian state of Gujarat.
• American companies, Apple among them, have pushed their suppliers to diversify their supply chains beyond mainland China, as geopolitical and economic tensions mount. Foxconn has broken ground on multiple factory sites across India, although the $20 billion joint venture with Vedanta would have been one of the largest.
• Reason for Breakup- The breakup comes as U.S. and Chinese leaders and business executives work through an uneasy and oftentimes treacherous path, with both threading the needle between acknowledging their co- dependence and harshly rebuking their counterparts.

How it impacts India?

• Foxconn’s withdrawal from the project deals a blow to India’s chipmaking plans in the country, which had become a top priority for India’s economic strategy in pursuit of a “new era” in electronics manufacturing.

What are semi- conductors?

• Semiconductors are materials that have a conductivity between conductors (generally metals) and non- conductors or insulators (such as most ceramics). Semiconductors can be pure elements, such as silicon or germanium, or compounds such as gallium arsenide or cadmium selenide.  

Properties of Semiconductors

• Semiconductors possess specific electrical properties. A substance that conducts electricity is called a conductor, and a substance that does not conduct electricity is called an insulator. Semiconductors are substances with properties somewhere between them.
• Property 1: The resistivity of a semiconductor is not greater than that of an insulator but greater than that of a conductor.
• Property 2: Semiconductors exhibit negative resistance values. …
• Property 3: At zero kelvin, semiconductors act as insulators.

Main types of semiconductors

The two main types of semiconductors are n-type and p-type.

• An n-type semiconductor contains one or more impurities based on pentavalent atoms like phosphorus, arsenic, antimony, and bismuth
• A p-type semiconductor has dopants with five electrons in its valence layer. Phosphorus is commonly used for this purpose, as well as  arsenic, or antimony.

Applications of Semi-Conductors

• Semiconductors are used in the manufacture of various types of electronic devices, including diodes, transistors, and integrated circuits.
• Semiconductors are used in almost every field of electronics. Consumer electronics: Cell phones, laptops, games consoles, microwaves and refrigerators all work with the use of semiconductor devices such as integrated chips, diodes and transistors.

India Semiconductor Mission

• India Semiconductor Mission (ISM) has been setup as an Independent Business Division within Digital India Corporation.
• ISM has all the administrative and financial powers and is tasked with the responsibility of catalysing the India Semiconductor ecosystem in manufacturing, packaging and design. ISM has an advisory board consisting of some of the leading global experts in the field of semiconductors.
• ISM is serving as the nodal agency for efficient, coherent and smooth implementation of the programme for development of semiconductor and manufacturing ecosystem in India.

Objectives of ISM are as under:

1. Formulate a comprehensive long-term strategy for developing sustainable semiconductors and display manufacturing facilities and semiconductor design eco-system in the country in consultation with the Government ministries / departments / agencies, industry, and academia.
2. Facilitate the adoption of secure microelectronics and developing trusted semiconductor supply chain, including raw materials, specialty chemicals, gases, and manufacturing equipment.
3. Enable a multi-fold growth of Indian semiconductor design industry by providing requisite support in the form of Electronic Design Automation (EDA) tools, foundry services and other suitable mechanisms for early-stage startups.
4. Promote and facilitate indigenous Intellectual Property (IP) generation.
5. Encourage, enable and incentivize Transfer of Technologies (ToT).
6. Establish suitable mechanisms to harness economies of scale in Indian semiconductor and display industry.
7. Enable cutting-edge research in semiconductors and display industry including evolutionary and revolutionary technologies through grants, global collaborations and other mechanisms in academia / research institutions, industry, and through establishing Centres of Excellence (CoEs).
8. Enable collaborations and partnership programs with national and international agencies, industries and institutions for catalyzing collaborative research, commercialization and skill development.

Semicon India Programme

• Government has approved the Semicon India programme with a total outlay of INR 76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country.
• The programme has further been modified in view of the aggressive incentives offered by countries already having established semiconductor ecosystem and limited number of companies owning the advanced node technologies.
• The modified programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem. This will serve to pave the way for India’s growing presence in the global electronics value chains.

Following four schemes have been introduced under the aforesaid programme:

1. ‘Modified Scheme for setting up of Semiconductor Fabs in India’ for attracting large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain. The Scheme extends a fiscal support of 50% of the project cost on pari-passu basis for setting up of Silicon CMOS based Semiconductor Fab in India.
2. ‘Modified Scheme for setting up of Display Fabs in India’ for attracting large investments for manufacturing TFT LCD or AMOLED based display panels in the country to strengthen the electronics manufacturing ecosystem. Scheme extends fiscal support of 50% of Project Cost on pari-passu basis for setting up of Display Fabs in India.
3. ‘Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab / Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India’ shall extends a fiscal support of 50% of the Capital Expenditure on Pari-passu basis for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab/ Discrete Semiconductor Fab and Semiconductor ATMP / OSAT facilities in India.
4. ‘Semicon India Future Design: Design Linked Incentive (DLI) Scheme’ offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design. The scheme provides “Product Design Linked Incentive” of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and “Deployment Linked Incentive” of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application.

5 . Facts for Prelims

Majorana Zero

• All subatomic particles that make up matter are called fermions
• A Majorana fermion, also referred to as a Majorana particle, is a fermion that is its own antiparticle. They were hypothesized by Ettore Majorana in 1937. The term is sometimes used in opposition to a Dirac fermion, which describes fermions that are not their own antiparticles.
• In 1928, the British physicist Paul Dirac wanted to understand how quantum mechanics would change if it accommodated the special theory of relativity as well. The result was the Dirac equation, which described the behaviour of subatomic particles that moved at near the speed of light.
• Dirac noticed that the equation predicted the existence of an antiparticle for each particle, such that if the two meet, they annihilate each other. Based on his prediction, scientists found the first antiparticle, the positron (or the anti-electron), in 1932. The discovery has been hailed as a good example of theory leading experiment.
• In 1937, the Italian physicist Ettore Majorana found that the Dirac equation also allowed particles that satisfied certain conditions to be their own antiparticles. In his honor, fermions that are their own antiparticles are called Majorana fermions.
• One subatomic particle that physicists think could be Majorana fermions are neutrinos.

FPI , FDI AND FII Difference

• FDI- Foreign Direct Investment (FDI) means investing in another country. It involves, foreign direct capital inflows from one country to another. Wherein, foreign countries have an ownership interest or a say in the business.
• FPI- Foreign Portfolio Investment (FPI) means  investing in the financial assets of a foreign country, such as stocks or bonds available on an exchange. This kind of investment is considered less favorable than direct investment because portfolio investment can be sold off quickly and these are at times seen as short term attempts to make money, rather than a long-term investment in the economy. A few examples of FPI are investments made in the shares of a foreign country.
• FII- Foreign Institutional Investors (FIIs) are large companies that invest in countries other than where their headquarters are located. The term FII is most commonly used in India, where it refers to outside entities investing in the nation’s financial markets. FIIs can include hedge funds, insurance companies, pension funds, investment banks and mutual funds.

What are the differences between FDI, FII AND FPI?

• Differences based on type of assets – FDIs tend to invest in productive assets like machinery and plants for their business. The value of these assets increases with time. Foreign institutional investments put their money into financial assets like the bonds, mutual funds, and stocks of the nation.
• Investment Tenure- Foreign direct investors tend to take a longer-term approach to their FDI investments. It can take anywhere between 6 months to a couple of years to advance from the planning stage to the project implementation stage. The difference with respect to foreign portfolio investments of FIIs is that the investors for these types of foreign investments have a much shorter investment horizon. FIIs may be invested for the long haul however, the investment horizon continues to remain small, especially when one’s local economy is turbulent.
• Liquidity– Due to the length of the investment horizon, FDI investors also cannot depart as easily from their investments as FII portfolio investments. FDI assets can even be considered larger and definitely less liquid than FII portfolio investments. Lack of liquidity reduces the buying power of an investor and increases the risk.
• FII and portfolio investments are both widely traded and highly liquid.
• FDI can prove to be a more stable investment than FPI especially for a nation to attract foreign investment.
• Control Exercised in FDI vs FII vs FPI,- Investors who look into FDI can usually exercise a higher degree of control than those who invest in FIIs. In general, FDI investors are actively involved in the management of their investments.
• FIIs are considered passive investors and aren’t involved in the day-to-day functioning and operation as well as strategic planning required by any domestic companies.