17TH FEBRUARY, 2024

A.) Generative AI Overview

(PRELIMS – CURRENT EVENT)

WHY IN NEWS - Generative artificial intelligence (AI) involves algorithms (like

ChatGPT) that create various types of content such as text, images, code, audio,
simulations, and videos. This technology has gained attention due to its user-friendly
interfaces allowing quick creation of high-quality content.
Introducing Sora: Sora is a new generative AI model from OpenAI, the creators of
ChatGPT, specifically designed to turn text prompts into videos. It can produce videos up
to one minute long while ensuring visual quality and staying true to the user's input.
Advancements in Text-to-Video: While platforms using generative AI have made
significant progress in generating images and text responses, converting text to video has
been more challenging due to the complexity of analyzing moving objects in three-
dimensional space.
Other Players in the Field: Several other companies, like Google with Lumiere and
others such as Runway and Pika, have also entered the text-to-video domain. For
instance, Lumiere can generate five-second videos based on both text and image prompts.
Safety Measures: OpenAI has announced its intention to implement safety measures
before integrating Sora into its products. This includes collaborating with domain experts
known as red teamers, who will rigorously test the model for issues like misinformation,
hateful content, and bias to ensure its reliability and safety.
B.) Farmers' Protest for MSP Legal Guarantee
(GS PAPER 3 – GOVERNANCE)

WHY IN NEWS - Thousands of farmers gathered at the Punjab and Haryana border,
demanding a legal guarantee for minimum support prices (MSP).
Background: Farmer unions claim that the government has not fulfilled its promise of
providing legal assurance for MSP, which was agreed upon after extensive protests in
2021.
Understanding MSP: MSP is the minimum price at which government agencies
purchase agricultural goods from farmers. It acts as a safety net, ensuring farmers a
minimum income, especially during market fluctuations or crises.
Calculation of MSP: MSP is calculated considering farmers' incurred costs, including
both explicit and implicit expenses. These include costs for inputs like fertilizers, seeds,
and labor, along with family labor and rent paid by farmers.
Factors Considered for MSP: The Commission for Agricultural Costs and Prices
(CACP) recommends MSPs based on factors such as market prices, supply and demand
data, production trends, and industry capacity. The final decision on MSP levels is made
by the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister.
Benefits of MSP for Farmers:
1. Income Security: MSP ensures farmers a stable and predictable income, particularly
during market volatility.
2. Price Stability: By setting a floor price, MSP helps stabilize market prices, benefiting
both farmers and consumers.
3. Production Boost: MSP incentivizes farmers to increase crop production, knowing they'll
receive fair prices for their efforts.
4. Food Security: MSP encourages cultivation of essential food crops, ensuring a steady
domestic food supply and reducing dependence on imports.
C.) India's Anti-Dumping Probe on Solar Glass Imports
(PRELIMS – ECONOMY)

WHY IN NEWS - Solar glass is essential for manufacturing solar panels, crucial for
India's renewable energy goals, aiming to install 450 gigawatts of renewable energy
capacity by 2030.
Understanding Anti-Dumping Duty: Anti-dumping duty is a tariff imposed by
governments on imports sold below their normal value in the exporting country. It aims
to protect domestic industries from unfair competition and trade distortions.
Regulation of Dumping: The World Trade Organization (WTO) oversees dumping
practices through the Anti-Dumping Agreement, establishing rules for investigating,
determining, and applying anti-dumping measures.
Criteria for Imposing Anti-Dumping Duty: According to the Anti-Dumping
Agreement, a WTO member can impose anti-dumping measures if imports are sold
below their normal value, causing material harm to the domestic industry, with a causal
link between the two.
Authority in India: The Ministry of Finance has the authority to impose anti-dumping
duties based on recommendations from the Directorate General of Trade Remedies
(DGTR). The DGTR, part of the Ministry of Commerce and Industry, investigates and
assesses dumping and its impact on domestic industries.
D.) Environmental Concerns: Acid Rain
(PRELIMS – ENVIRONMENT)

WHY IN NEWS - Environmental damage in 2023 reached alarming levels, sparking

discussions on various associated issues.
Understanding Acid Rain: Acid rain, a result of fossil fuel origins, encompasses any
form of precipitation containing acidic components like sulfuric or nitric acid, impacting
ecosystems and structures.
Formation: Sulfur dioxide (SO2) and nitrogen oxides (NOx) combine with water and
oxygen in the atmosphere, forming sulfuric acid (H2SO4) and nitric acid (HNO3),
leading to acid rain, snow, or fog.
Causes: Burning fossil fuels, especially those high in sulfur, releases SO2, while NOx is
emitted from vehicle and industrial combustion. Volcanic eruptions and lightning also
contribute.
Consequences: Acid rain affects aquatic life by disrupting reproduction and leading to
fish population declines in affected water bodies. Marine ecosystems suffer pH
alterations, impacting organism survival and distribution.
Challenges: Shell-forming marine species struggle due to acidification, hindering shell
formation and maintenance. Additionally, acid rain damages structures and monuments,
such as the Taj Mahal, causing deterioration and discoloration.
E.) Government Announcement: Increase in Windfall Tax on Oil Products
(PRELIMS – ECONOMY)

WHY IN NEWS - The Indian government has raised the windfall tax on domestically
produced crude oil and diesel, effective February 16, through a Special Additional Excise
Duty (SAED).
Understanding Windfall Tax: A windfall tax is a higher tax imposed by governments
on industries experiencing significantly above-average profits due to unexpected events
or market conditions. It targets supernormal profits for a limited period.
India's Windfall Tax: India introduced windfall profit taxes on July 1, 2022, as part of
global practices to tax energy companies' excessive profits amid market uncertainties.
Tax rates are reviewed every fortnight based on recent oil prices.
Reasons for Windfall Tax:
1. Redistribution of Gains: High prices benefit producers but burden consumers,
necessitating redistribution.
2. Funding Social Welfare: Revenue from the tax supports public goods like health and
education.
3. Supplementing Government Revenue: Windfall tax provides additional revenue, crucial
during fiscal deficits.
4. Promoting Efficient Resource Use: Taxation encourages resource conservation and
pollution reduction.
5. Addressing Trade Deficits: Tax revenue helps narrow the country's trade deficit.