Women get only 7% MSME credit: RBI ED 

 Barriers to Financial Inclusion Highlighted by RBI Executive Director Neeraj Nigam

Economic Participation and Financial Inclusion

• Low Labour Force Participation: Women’s low participation in the labour force is a major barrier to financial inclusion and economic growth.
• Participation Disparity: Female labour force participation is 32.8% (FY22), significantly lower than men’s 77%.
• Credit Disparity: Women-led businesses make up nearly 20% of MSMEs but receive only 7% of the outstanding credit to this sector.

Efforts and Challenges in Financial Inclusion

1. Successes and Gaps
   • Access to Financial Services: Success of schemes like Pradhan Mantri Jan-Dhan Yojana (PMJDY) and social security transfers.
   • Demand-side Issues: Remaining challenges on the demand side need attention.
2. Structural Barriers
   • Capital and Labour Participation: Low levels of capital and labour participation.
   • Societal Norms: Restrictions on property inheritance and limited access to education and training for women.

Stereotyping and Behavioral Issues

1. Higher Risk Perception
   • Stereotyping by Financiers: Women borrowers are often seen as higher risks, leading to higher interest rates, greater insistence on collateral, or outright loan rejections.
2. Behavioral Challenges
   • Risk Aversion: Women borrowers tend to be more risk-averse and less confident in negotiating loan terms.
   • Fear of Rejection: Women are less likely to apply for new loans due to fear of rejection.

Conclusion

Obstacles to Economic progress: Women’s restricted access to credit and low labor force participation continue to be major obstacles to financial inclusion and economic progress.

The need for structural change is seen in the need to address societal and structural concerns, dispel misconceptions, and increase financial literacy in order to give women more economic power.

Importance of continuous Efforts: While the RBI’s programs on financial inclusion and literacy are important, more must be done to guarantee that women may fully engage in and profit from economic activities, which will promote overall economic development. This will require continuous efforts and cooperative action.

Aphelion

Aphelion: Earth’s Farthest Point from the Sun

What is Aphelion?

• Definition: Aphelion is the point in a planet’s or celestial body’s orbit where it is farthest from the Sun.
• Orbit Shape: Earth’s orbit is an ellipse, not a perfect circle, with the Sun at one of the ellipse’s foci.
• Significance: Aphelion occurs when Earth is at its maximum distance from the Sun along this elliptical path.
• Historical Context: The concept of aphelion was key to Johannes Kepler’s laws of planetary motion in the 17th century.

Distance from the Sun at Aphelion

• Timing: Aphelion typically occurs around July 4th–5th each year.
• Distance: Earth is about 152.1 million kilometers (94.5 million miles) away from the Sun at aphelion.
• Comparison: This distance is about 3.3% greater than Earth’s average distance from the Sun (semi-major axis), which is approximately 147.1 million kilometers.

Effect on Earth’s Temperatures

• Minimal Impact: Aphelion has a slight effect on Earth’s temperatures, but it is minimal compared to other factors.
• Primary Factors: Axial tilt and atmospheric circulation patterns have a more significant impact on temperatures.
• Seasonal Influence: Despite being farther from the Sun during aphelion, the northern hemisphere experiences summer due to the tilt towards the Sun, resulting in warmer temperatures.

Hypothetical Scenario Without Aphelion

• Circular Orbit: If Earth’s orbit were perfectly circular, there would be no aphelion or perihelion.
• Constant Distance: The distance between Earth and the Sun would remain constant throughout the year.
• Temperature Variation: There would be less variation in seasonal temperatures between the northern and southern hemispheres.
• Ecological Impact: The distinct seasons essential for ecological diversity and agricultural cycles would be significantly altered.

World Drug Report 2024

World Drug Report 2024: Key Highlights

Background:

• Emergence of Synthetic Opioids: New synthetic opioids and a record supply and demand of other drugs have exacerbated the global drug problem.
• Impact: Rise in drug use disorders and environmental harms.

Key Highlights:

1. Global Drug Use Statistics:
   • Total Drug Users: 292 million worldwide, a 20% increase over the past decade.
   • Most Popular Drug: Cannabis, with 228 million users.
   • Other Common Drugs: Opioids, Amphetamines, Cocaine, Ecstasy.
2. New Synthetic Opioids:
   • Nitazenes: A new class of synthetic opioids, more potent than fentanyl.
3. Treatment Gaps:
   • General Treatment Access: Only one in eleven people with drug use disorders receive treatment.
   • Gender Disparity: One in 18 women receive treatment compared to one in seven men.
4. Drug Addiction in India:
   • Narcotics Control Bureau Data: Approximately 100 million people in India are addicted to various narcotic substances.

World Drug Day 2024

• Date: Observed on June 26th annually.
• Establishment: Initiated in December 1987 by the United Nations General Assembly.
• Purpose: Raise awareness about the global fight against drug abuse and illicit drug trafficking.
• Theme for 2024: “The evidence is clear: invest in prevention.”

UNCHECKED URBAN EXPANSION

The main cause of persistent urban flooding in Delhi and the greater National Capital Region (NCR) is unplanned and reckless urban growth.

Background:

Parts of Delhi came to a complete stop due to a period of intense rain last week. There was an hour-long traffic jam as a result of the inundation of streets throughout the city and the greater NCR. Long-lasting power outages, property damage, and fatalities were also caused by water-logging.

Delhi’s Rapid Urban Expansion and Water Management Challenges

Urban Expansion:

• Delhi has experienced rapid urban expansion, nearly doubling in size from 1991 to 2011, primarily on the peripheries of New Delhi.
• Satellite cities in the National Capital Region (NCR) like Bahadurgarh, Ghaziabad, Faridabad, Noida, and Gurugram have also undergone significant urbanization.

Population Growth:

• Projections suggest Delhi could surpass Tokyo as the world’s most populous city by 2030, with an estimated population of nearly 39 million, up from about 16 million in 2000.

Topography and Drainage Issues:

• Historic cities in Delhi were strategically built on higher ground to facilitate natural drainage. However, modern urban expansion has largely ignored natural topography.
• High-intensity rains often lead to significant runoff due to inadequate drainage systems, exacerbating flooding issues, especially in low-lying areas like Sarai Kale Khan.

Impact of Urbanization:

• Increased concrete infrastructure impedes natural water flow and channels rainwater into concretized drains, exacerbating sewage and flood problems.
• Construction in flood plains, begun during the British era with the railway line along the Yamuna, has further compounded drainage issues.

Water Management Challenges:

• Lack of a comprehensive water management plan for Delhi has led to recurring flooding, exemplified by incidents like the Pragati Maidan Tunnel floods.
• Destruction of water bodies, with only about 400 remaining out of an estimated 1,000, has eliminated natural flood management resources.

Proposed Solutions:

• Water Masterplan: Urgent need for urban planners to develop a comprehensive water management strategy, integrating clean and waste water flows.
• Conservation of Water Bodies: Protecting existing water bodies and possibly restoring some of the 600 lost bodies to manage flooding.
• Sustainable Development Practices: Avoiding construction in low-lying areas, promoting de-concretization of urban spaces, and ensuring proper solid waste management to prevent drain blockages.

Addressing these challenges requires a holistic approach that respects Delhi’s natural topography and integrates sustainable urban planning with effective water management strategies.

VANUATU

China has provided funding for a new complex that the government of Vanuatu will shortly occupy. This development has raised new questions regarding Beijing’s influence in the South Pacific nation.

Background:

• China has funded significant infrastructure renovations throughout the Pacific islands, where it is vying for influence with rival Western nations. This program highlights China’s geopolitical interests in these islands.

About Vanuatu :

• In the southwest Pacific Ocean, Vanuatu is an island nation made up of a chain of 13 major islands and numerous smaller ones.
• These islands are located roughly to Australia’s east.
• The islands form an asymmetrical Y as they stretch north-south.
• The principal islands are Vanua Lava, Santa Maria (Gaua), Espiritu Santo, Aoba (Ambae), Maéwo, Pentecost, Malakula, Ambrym, Épi, Éfaté, Erromango, Tanna, and Anatom. The Torres Islands are the group that is furthest to the north.
• Vanuatu became independent in 1980, having previously been the jointly controlled Anglo-French condominium of the New Hebrides.
• Port-Vila, also known as Vila, is the capital, largest city, and commercial hub of Éfaté.