Dec 14 2024

After averaging a growth rate of 8 per cent over the last three years, the economy slowed to just 5.4 per cent in the second quarter. 

  • Simultaneously, the inflation rate surged past the tolerance level of 6 per cent in October,  largely driven by rising food prices.

Current Economic Slowdown and Growth Dynamics

  • Recent Trends: The GDP growth rate slowed to 5.4% in the second quarter, marking the weakest growth in seven quarters. 
    • The RBI has revised the forecast for GDP growth for the fiscal year to 6.6%, down from the earlier estimate of 7.2%
  • Agricultural Sector: The agricultural sector recorded a growth of 3.5%, despite favorable monsoon conditions. 
    • The impact of erratic rainfall on the production of fruits and vegetables contributed to this limited growth.
  • Key Contributing Factors: The slowdown in private and public consumption was primarily driven by elevated food prices and delays in capital expenditure following the elections. 
    • The Gross Fixed Capital Formation grew by just 1.3%, marking its lowest level in several quarters.
  • Sectoral Performance: The growth rate of the manufacturing sector declined to 2%, even though the Purchasing Managers’ Index (PMI) indicated expansion during the quarter. 
    • The deceleration in mining (primary sector) and manufacturing (secondary sector) growth raises significant concerns.
    • The construction sector, which had previously recorded double-digit growth, slowed to 7.1%.

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About Purchasing Managers Index (PMI)

Inflation

  • It measures the month-over-month change in economic activity within the manufacturing sector. It is an indicator of business activity, both in the manufacturing and services sectors.
    • It summarizes whether market conditions as viewed by purchasing managers are expanding, neutral, or contracting.
  • Types of Purchasing Managers Index: There are two types of PMI — Manufacturing PMI and Services PMI. 
    • It is calculated separately for the manufacturing and services sectors and then a composite index is also constructed.
  • Headline PMI: The headline PMI is a number from 0 to 100. 
    • PMI above 50 represents an expansion when compared to the previous month. 
    • PMI under 50 represents a contraction
    • A reading at 50 à indicates no change.

  • Policy Response: The Monetary Policy Committee (MPC) decided to maintain the policy rate but reduced the Cash Reserve Ratio (CRR) by 25 basis points in two tranches to address liquidity issues. 
    • The RBI aims to achieve its 4% inflation target only by the second quarter of 2025-26.
    • The RBI has described the current situation as an “aberration in the growth-inflation trajectory.”

About Inflation

  • Definition: It is the gradual rise in prices of goods and services within a particular economy wherein, the purchasing power of consumers decreases, and the value of the cash holdings erode.         
    • Inflation measures the average price change in a basket of commodities and services over time.
  • Deflation: The opposite and rare fall in the price index of this basket of items is called deflation. 
  • Measurement: Inflation is measured as the annual percentage change in a price index such as the Consumer Price Index (CPI) or Gross Domestic Product (GDP) Deflator.
    • In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures inflation.

How is Inflation measured?

In India, inflation is primarily measured by two main indices WPI (Wholesale Price Index) and CPI (Consumer Price Index), which measure wholesale and retail-level price changes, respectively.

About Consumer Price Index (CPI) – Retail Inflation

  • CPI Measures the change in the retail prices of goods and services with reference to a base year.
  • Inflation Compiled by: National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
  • Types of CPI:
    • CPI for Industrial Workers (CPI-IW)
      • Compiled by the Labor Bureau.
      • Base year: 2016.
    • CPI for Rural Laborers and Agricultural Laborers (CPI-AL & CPI-RL)
      • Compiled by the Labor Bureau.
      • Base year: 1986-87.
    • New CPI (Rural, Urban, and Combined):
      • Base year: 2012.
      • Compiled and published by the Central Statistical Organisation (CSO) for all-India levels.

Consumer Food Price Index (CFPI)

  • CFPI: It is a sub-component of CPI, measuring changes in retail prices of food items consumed by the population.
  • Focus: Tracks price changes of food staples such as cereals, vegetables, fruits, dairy, meat, etc.
  • Compiled by: Central Statistical Office (CSO), MoSPI (from May 2014), now under NSO (formed in 2019).
  • Base year: 2012.
  • Methodology: Calculated monthly, using the same methodology as CPI.

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Wholesale Price Index (WPI)

  • WPI : It measures the average change in wholesale prices before the retail level.
  • Coverage: It covers only goods, excluding services.
  • Compiled by: Office of Economic Advisor, Ministry of Commerce and Industry (on a monthly basis).
  • Base year: 2011-12.
  • Weightage: Weights assigned to commodities are based on production value adjusted for net imports.

Types of Inflation

Type of Inflation Definition Key Characteristics
Based on Rate
Creeping Inflation Gradual increase in prices at a rate of less than 3% annually.
  • Considered manageable.
  • Encourages demand and investment.
  • Reflects economic growth.
Walking Inflation Moderate increase in prices, typically 3%–10% annually.
  • Acts as a warning for potential overheating.
  • Can disrupt savings and investment patterns if unchecked.
Galloping Inflation Rapid increase in prices, typically between 10%–50%.

Example: Inflation in developing economies during crises.

India experienced galloping inflation during 1973 and 1979 oil crises caused a sharp rise in global crude oil prices.

  • Severely disrupts economic stability.
  • Reduces purchasing power and hampers income stability.
Hyperinflation Extreme inflation with prices rising over 50% per month.

Example: Zimbabwe (2004–2009), Germany (Weimar Republic, 1920s).

  • Decimates currency value.
  • Leads to a loss of public trust in money.
  • Creates economic chaos.

Based on Causes

Demand-Pull Inflation Inflation caused by excessive demand over supply.

Example: Inflation due to festive season demand.

  • Triggered by increased money supply or consumer spending.
  •  Common during economic booms.
Cost-Push Inflation Inflation caused by rising production costs.

Example: Rising oil prices leading to increased transportation costs.

  • Driven by higher costs for raw materials, wages, or energy.
  • Passes costs onto consumers.
Structural Inflation Inflation caused by inefficiencies in the economic structure.

Example: Inflation in developing countries with rigid supply chains.

  • Arises from supply bottlenecks, monopolistic practices, or poor infrastructure.
Built-in Inflation Inflation perpetuated by expectations of future inflation.

Example: Wage hikes in response to expected price increases.

  • Leads to wage-price spirals.
  • Sustains inflationary pressures over time.
Skewflation Inflation affecting only specific goods or sectors.

Example: Food price inflation while other prices remain stable.

  • Prices of selected goods rise, while others remain stable.
  • Different from general inflation.
Headline Inflation Measures inflation across all goods and services in an economy.

Example: CPI-based inflation in India.

  • Includes all items, including volatile food and energy prices.
  • Reflects overall price changes.
Core Inflation Inflation excluding volatile items like food and energy.

Example: Used by central banks to set monetary policies.

  • Highlights the long-term trend.
  • Used for policy decisions.
Reflation Deliberate inflation stimulation by the government to counter deflation.

Example: Government spending after a recession.

  • Aimed at reviving economic growth.
  • Often involves fiscal stimulus or monetary expansion.
Stagflation Simultaneous occurrence of high inflation and stagnant growth.

Example: U.S. in the 1970s.

  • Rare phenomenon.
  • Contrary to the Phillips Curve.
  • Difficult to address through conventional policies.

Positive and Negative Impact Rising Inflation 

Positive Negative
1. Boosts Economic Activity: Moderate inflation encourages spending and investment as money loses value over time.

Example: Moderate inflation (~2%) is a target for many central banks, including the RBI and the US Federal Reserve, to promote economic growth.

1. Erodes Purchasing Power: High inflation reduces consumers’ ability to buy goods and services. 

Example: In 2024, India’s CPI inflation peaked at 6.2%, squeezing household budgets.

2. Reduces Real Debt Burden: Borrowers benefit as the real value of debt decreases over time. 

Example: During inflation, a loan with a fixed interest rate becomes cheaper in real terms.

2. Reduces Savings Value: Inflation lowers the real returns on savings. 

Example: If inflation exceeds fixed deposit returns (e.g., inflation at 7% vs FD at 5%), savings lose value.

3. Encourages Production: Rising prices incentivize producers to increase output to meet demand. 

Example: Increased agricultural production during high food prices to leverage profits.

3. Income Inequality: Affects lower-income groups disproportionately. 

Example: Food inflation in rural India reached over 9% in late 2024, affecting poorer households more.

4. Benefits Equity Holders: Companies may earn higher profits, benefitting shareholders during inflation. 

Example: Commodity companies like oil and gas firms see profit increases when input prices rise.

4. Higher Interest Rates: Central banks often raise rates to control inflation. 

Example: RBI’s repo rate hikes from 4% in 2022 to 6.5% in 2024 raised borrowing costs for businesses and households.

5. Increases Tax Revenue: Inflation boosts nominal incomes, leading to higher tax collections for the government. 

Example: During inflationary periods, income tax collections in India rose by 20% in 2022-23.

5. Distorts Economic Planning: Unpredictable inflation complicates pricing and long-term business planning.

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Challenges in Addressing Inflation in India

  • Supply Chain Disruptions: Frequent disruptions due to geopolitical conflicts, natural disasters, or pandemics can lead to supply-side inflation.
    • Example: High food and fuel prices in 2024 were partly driven by global supply chain constraints and volatile crude oil markets.
  • Agricultural Dependence on Monsoon: India’s agriculture remains highly dependent on monsoon rainfall, making food prices vulnerable to erratic weather patterns.
    • Example: Erratic rainfall in 2024 impacted the production of fruits and vegetables, contributing to food inflation.
  • Global Energy Price Volatility: Dependence on imported crude oil exposes India to external shocks, leading to cost-push inflation.
    • Example: Rising global crude oil prices in late 2023-2024 raised transportation and manufacturing costs domestically.
  • Policy Trade-offs: Balancing inflation control with growth is a significant challenge for the RBI. Tightening monetary policy to control inflation may dampen economic growth and investment.
    • Example: The Monetary Policy Committee (MPC) of RBI held steadfast in its battle against inflation amid weakening growth momentum to keep the policy repo rate unchanged at 6.50% for the eleventh bi-monthly review in a row.
  • Structural Issues in Distribution and Storage: Inefficient storage facilities and distribution networks lead to wastage of perishable commodities, driving food inflation.
    • Example: Lack of cold storage for vegetables and fruits exacerbates seasonal price volatility, as seen during high inflation periods.

Government Measures to Control Inflation

  • Monetary Policy Measures (by RBI):
    • Interest Rate Adjustments: The RBI raises the repo rate to curb liquidity and demand in the market.
      • Example: In 2023-24, the RBI raised interest rates to control inflation exceeding the 6% threshold.
    • Open Market Operations (OMOs): RBI sells government securities to reduce money supply in the economy.
    • Cash Reserve Ratio (CRR): Increasing CRR compels banks to hold more reserves, reducing loanable funds.
  • Fiscal Policy Measures:
    • Reduced Government Spending: Curtailing non-essential expenditures to reduce aggregate demand.
    • Increased Taxes: Raising direct and indirect taxes to reduce disposable income and lower consumption.
      • Example: Increasing excise duty on luxury goods to curb demand.
    • Subsidy Rationalization: Reducing subsidies on non-essential items to prevent fiscal imbalances that fuel inflation.
  • Supply-Side Measures:
    • Boost Agricultural Productivity: Investing in irrigation, fertilizers, and logistics to ensure food supply stability.
    • Buffer Stock Management: Releasing buffer stocks of essential commodities like wheat and rice during shortages.
    • Encouraging Imports: Reducing import duties on essential goods like pulses and edible oils to stabilize domestic prices.
  • Trade Policy Measures: Temporarily banning or limiting the export of essential items to ensure adequate domestic supply.
    • India restricted wheat exports in 2022 to control rising domestic prices.

Way Forward for Managing Inflation in India

  • Focus on Supply-Side Measures: The government should prioritize addressing supply bottlenecks, especially for food and energy.
    • Example: The government has readied stocks to release onions at a subsidized rate of ₹25 a kilogram to curb the escalating onion prices.
  • Encourage Agricultural Reforms: Boost agricultural productivity by investing in irrigation, storage, and transportation infrastructure to minimize post-harvest losses.
    • Introduce policies to ensure stable prices for protein-rich food items like pulses and meat, curbing protein inflation.
  • Strengthen Monetary Policy Interventions: The RBI should continue monitoring headline inflation while ensuring adequate liquidity to support growth.
    • Calibrated rate adjustments can maintain a balance between controlling inflation and fostering investment.
  • Promote Energy and Renewable Sources: Reduce dependency on imported crude oil to tackle cost-push inflation caused by global fuel price volatility.
    • Accelerate investment in renewable energy to mitigate long-term energy-related inflation risks.
  • Fiscal Prudence and Targeted Subsidies: The government should practice fiscal prudence by rationalizing expenditure and focusing on infrastructure investments that stimulate supply-side growth.
    • Provide targeted subsidies for essential commodities to shield vulnerable populations from the effects of inflation.
  • Enhance Inflation Forecasting Mechanisms: Invest in real-time data collection and advanced forecasting tools to predict and respond to inflation trends more effectively.
    • Strengthen collaboration between central and state governments to tackle inflationary pressures at regional levels.

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Conclusion

Addressing inflation requires a multi-faceted approach, involving both immediate measures to manage demand-pull and cost-push pressures, and long-term structural reforms to enhance supply chain resilience and stabilize currency. A balanced economic policy framework is essential to manage inflation sustainably while promoting growth and investment.

Prime Minister Narendra Modi  to chair the fourth National Conference of Chief Secretaries.

About the Conference

  • Organized by: The conference is organized by NITI Aayog.
    Theme: The theme for the conference is “Promoting Entrepreneurship, Employment & Skilling – Leveraging the Demographic Dividend.”

    • Key Agendas: Under this overarching theme, special emphasis will be on six areas: Manufacturing, Services, Rural Non-farm, Urban, Renewable Energy, and Circular Economy have been identified for detailed discussions.
  • Participants: The event sees participation from Union Ministries and Departments, NITI Aayog, States and Union Territories, and domain experts.

Frontier Technology

  • Frontier Technologies refer to cutting-edge and innovative technologies that are at the forefront of scientific and technological advancements. 
  • These technologies often represent the leading edge of progress in various fields and have the potential to bring about significant changes in society, the economy, and other aspects of human life.
  • The term “frontier” implies that these technologies are pushing the boundaries of what is currently possible and are exploring new frontiers of knowledge and capability.

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  • Special Sessions:
    • A session on frontier technology for Viksit Bharat is planned.
    • Other sessions will address economic reforms for investments and capacity building through Mission Karmayogi.
  • Other Focus Areas:
    • The conference will deliberate on achieving Atmanirbhar Bharat in agriculture, specifically focusing on edible oils and pulses.
    • Discussions will include the care economy for the aging population.
    • The implementation of schemes like PM Surya Ghar and Muft Bijli Yojana will also be reviewed.

About the Chief Secretary of a State Government in India

  • Role and Hierarchy: The Chief Secretary is the senior-most official in the Indian Administrative Service (IAS) within the state government.
    • This role is ranked 23rd in the Indian order of precedence.
  • Constitutional Provision: The role is not explicitly mentioned in the Constitution of India, but it is indirectly recognized under Article 166, which addresses the conduct of the business of state governments.
  • Appointment Process: The Chief Secretary is appointed by the Chief Minister of the state in the name of the Governor.
    • Although the Chief Minister may consult with the Union government, ministerial colleagues, or the cabinet, such consultation is not mandatory.
  • Basis of Selection: The selection is based on seniority, the service record of the official, and the Chief Minister’s evaluation.
  • Roles and Responsibilities:
    • The Chief Secretary serves as the ex-officio head of the State Civil Services Board, the state cadre of IAS officers, and all civil services governed under the state’s rules of business.
    • The Chief Secretary is the principal advisor to the Chief Minister, offering guidance on all matters related to state administration.
    • The Chief Secretary is responsible for the implementation of government policies and programs at the state level.
    • They serve as the central point of coordination for various state departments.
  • Tenure: There is no fixed tenure for the Chief Secretary.

The World Health Organization (WHO) published its first-ever Global Status Report on Drowning Prevention at an event in Geneva. The report highlights the significant global burden of drowning as a public health issue.

Key Findings of the Report

  • Global Drowning Deaths: In 2021, drowning caused the deaths of 300,000 people worldwide, equating to an estimated 30 deaths every hour.
  • Impact on Low and Middle-Income Countries: 92% of drowning deaths occurred in low and middle-income countries, disproportionately affecting the poor and marginalized communities.
  • Burden in the WHO South-East Asia Region: This region, which includes India, accounted for 83,000 deaths or 28% of the global drowning burden.
  • Under Five Child Vulnerability: Children aged under five accounted for the single largest share of drowning deaths (24%), with a further 19% of deaths among children aged five to 14, and 14% among young people aged 15 to 29.
  • Leading cause of Death: The report notes that globally, drowning is the fourth leading cause of death for children in the age group of one-four and the third leading cause of death for children aged five to 14.
  • Economic Impact of Drowning Prevention: Investing in drowning prevention efforts would not only save lives, it could help prevent economic losses of about $4 trillion that could occur by 2050 if efforts are not taken to stem the crisis.

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About Drowning

Drowning

  • Definition: According to WHO, drowning is defined as respiratory impairment resulting from submersion or immersion in liquid, with outcomes categorized as death, morbidity, or no morbidity.
  • Causes of Drowning: Rising sea levels, urban flooding, unsafe water transport, and risky livelihoods contribute significantly to drowning incidents.
  • At-Risk Populations: Groups particularly vulnerable to drowning include children, adolescents, forcibly displaced individuals, and people living in poverty.
  • World Drowning Prevention Day: The event is observed every year on 25th July to honor lives lost to drowning and promote awareness about water safety.

Actions Taken to Prevent Drowning

  • Global Initiatives:
    • The Global Report on Drowning Prevention (2014) by WHO marked a significant step in highlighting the issue.
    • The UN General Assembly resolution on drowning prevention (2021) emphasized the need for international cooperation.
    • The WHO Resolution WHA76.18 underscores the importance of multi-sectoral and coordinated actions to address drowning.
  • India’s Actions: India introduced the Strategic Framework for Drowning Prevention (2023).
    • It focuses on the collection of robust data to inform policies.
    • The framework promotes a multi-sectoral response, including infrastructure improvements, transport safety measures, and public awareness campaigns.

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Drowning

WHO’s Recommendations for Drowning Prevention

  • Strengthen public awareness about water safety and drowning risks.
  • Implement infrastructure improvements to reduce hazards in high-risk areas.
  • Promote safe water transport and enforce regulations to minimize risks.
  • Conduct targeted interventions for vulnerable populations, such as children and marginalized groups.
  • Facilitate global and regional cooperation to share best practices and resources for drowning prevention.

Switzerland has recently announced the suspension of the Most Favoured Nation (MFN) clause in its Double Tax Avoidance Agreement (DTAA) with India, effective from January 1, 2025. 

About Double Tax Avoidance Agreement (DTAA)

Most Favoured Nation Status

 

  • A DTAA is a tax treaty signed between two or more countries to prevent double taxation for taxpayers who reside in one country and earn income in another.
  • Application: The agreement applies when a taxpayer resides in one country but earns income in another country.
  • Purpose: To ensure that taxpayers are not subject to double taxation on the same income.
  • Types of DTAAs:
    • Comprehensive DTAAs: These cover all possible sources of income between the two countries.
    • Limited DTAAs: These focus on specific areas of income, such as income from shipping, air transport, inheritance, or dividends.

About the Most Favoured Nation (MFN) Clause

Most Favoured Nation Status

  • Definition: The MFN clause ensures that trade between countries is non-discriminatory. It mandates that a country must offer the same trade terms to all its trading partners.
  • WTO Rules:
    • Under World Trade Organization (WTO) regulations, member countries cannot discriminate among trade partners.
    • If any special trade benefits are granted to one trade partner, they must be extended to all WTO members.
  • Exceptions: While the MFN clause is a fundamental principle of the WTO, there are exceptions for: 
    • trade blocs like the USMCA and the European Union, which are allowed to discriminate against imports from outside the bloc;
    • trade barriers in response to unfair competition;
    • trade preferences extended to developing countries; and
    • trade in services, on a limited basis.
    • For example, the United States denies MFN status to Cuba and North Korea due to geopolitical and policy reasons.

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Impact of Removal of MFN Status in the India-Switzerland Double Taxation Avoidance Agreement (DTAA)

  • Increased Tax Burden on Indian Entities in Switzerland: The removal of the MFN status may lead to a higher tax burden on dividend income for Indian companies operating in Switzerland.
  • Potential Renegotiation of DTAA: The suspension of the MFN clause has prompted discussions on renegotiating the India-Switzerland DTAA.
    • The renegotiation will likely address changes required due to Switzerland’s obligations under the European Free Trade Association (EFTA) pact.
  • Impact on Bilateral Trade Relations: The removal of MFN status could create uncertainties in India-Switzerland trade relations, potentially affecting business confidence.
    • It might lead to a reassessment of trade policies between the two countries.
  • Alignment with the EFTA Trade Pact: The renegotiation of the DTAA is expected to align India’s tax framework with the broader terms of the EFTA trade deal, which includes Switzerland, Norway, Iceland, and Liechtenstein.
  • Implications for EFTA Free Trade Agreement: The MFN suspension highlights the need to resolve tax-related issues before the India-EFTA Free Trade Agreement comes into force.
    • This agreement is projected to bring USD 100 billion in investments from EFTA member countries to India over the next 15 years.
  • Legal and Judicial Precedents: Switzerland cited a 2023 Indian Supreme Court ruling related to Nestlé as a basis for suspending the MFN clause. This suggests a need for India to address legal interpretations that could impact international agreements.
  • Broader Economic Impact: The removal of MFN status may lead to a reassessment of India’s treaties with other countries, especially in the context of evolving global trade dynamics and investments.

ISRO achieved a significant milestone with the sea-level hot test of the CE20 cryogenic engine, conducted at the ISRO Propulsion Complex, Mahendragiri, Tamil Nadu.

About CE20 Cryogenic Engine

  • The CE20 cryogenic engine is a rocket engine that uses liquefied gases as both fuel and oxidizer.
  • These gases are kept at extremely low temperatures to maintain their liquid state.
  • ISRODeveloped by the Liquid Propulsion Systems Centre, the CE20 engine powers the upper stage of the Launch Vehicle Mark-3 (LVM-3)
  • Fuel and Oxidizer Used 
    • Liquid Oxygen (LOX): Acts as the oxidizer. It liquefies at -183°C.
    • Liquid Hydrogen (LH2): Serves as the fuel which liquefies at -253°C.
    • The reaction between LOX and LH2 generates thrust for propulsion.
  • Features
    • Engine Restart Capability: Equipped with a multi-element igniter, enabling the engine to restart mid-mission, crucial for missions like Gaganyaan.
      • This test validated ISRO’s ability to perform vacuum ignition without nozzle closure, advancing its cryogenic propulsion capabilities.
    • Nozzle Protection System: Prevents flow separation in the nozzle and reduces vibrations enhancing performance and simplifies testing procedures.
    • High Efficiency: Provides increased thrust and enhances payload capacity.
  • Applications: Primarily used in the upper stages of rockets, where high efficiency is essential for placing satellites or spacecraft into orbit.
    • The engine, initially qualified for 19 tonnes of thrust, has been upgraded to:
    • 20 tonnes for the Gaganyaan mission, India’s first manned spaceflight.
    • 22 tonnes for the C32 stage, enhancing the payload capacity of the LVM3 rocket.

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Other Cryogenic Engines Used by ISRO

  • KVD-1: Supplied by the Soviet Union in the 1980s.
    • Served as the foundation for India’s cryogenic engine development.
  • CE-7.5: An indigenous cryogenic engine developed by India.
    • Based on the design of the KVD-1.
  • Only six countries have developed their own cryogenic engine technology:
    • United States, France/European Space Agency, Russia, China, Japan and India.

Future Prospects

  • The test paves the way for improved cryogenic engine testing methods and supports future missions requiring high-thrust capabilities.
  • The enhancements contribute to India’s ambitions for manned space exploration and heavier payload launches.

The World Anti-Doping Agency (WADA) has approved the National Dope Testing Laboratory (NDTL) as an Athlete Passport Management Unit (APMU) to oversee the Athlete Biological Passport (ABP) program.

About Athlete Biological Passport (ABP)

Athlete Biological Passport

  • The ABP is an advanced anti-doping tool used to monitor an athlete’s biological markers over time.
  • Process Used: It analyzes blood and steroid profiles to detect irregularities to ensure fair play by identifying possible doping violations.
  • Modules Currently Implemented:
    • Haematological Module: Tracks markers of blood doping, such as abnormal red blood cell counts.
    • Steroidal Module: Monitors markers of steroid doping using urine or serum samples.
    • Endocrine Module: Observes markers of human growth hormone (hGH) doping.

About World Anti-Doping Agency (WADA)

  • Establishment: Founded in 1999 by the International Olympic Committee (IOC) to combat doping in sports globally.
  • Headquarters: Located in Montreal, Canada.
  • India’s Achievement in Anti-Doping Management: India becomes one of 17 Anti-Doping Management Units (APMUs) worldwide approved by WADA.
    • India’s APMU will serve domestic athletes and provide support to neighboring anti-doping organizations.

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About About National Anti-Doping Agency (NADA)

  • Establishment: NADA was set up in 2005 as a registered society under the Societies Registration Act of 1860.
  • Mandate: NADA’s primary mandate is to ensure dope-free sports in India.
  • Function: NADA is responsible for planning, implementing, and coordinating anti-doping activities across India.
    • It adheres to the World Anti-Doping Agency (WADA) Code and its associated regulations.
  • Nodal Ministry: NADA operates under the Ministry of Youth Affairs & Sports.
  • National Anti-Doping Act 2022: This Act provides legal backing to NADA for regulating anti-doping activities in Indian sports.
    • It aligns India’s efforts with the UNESCO International Convention against doping in sports

Google DeepMind has developed GenCast, a machine-learning weather prediction model that outperforms traditional forecasting systems.

About GenCast

  • GenCast is an advanced weather forecasting system powered by machine learning and trained on historical reanalysis data from 1979–2018.
  • Methodology: It utilizes a diffusion model approach, similar to AI image generation.
    • Generates multiple forecasts (ensemble forecasting) by starting with random noise and refining it using a neural network.
    • Combines forecasts to determine the best estimate and assess uncertainty.
  • Performance: Outperforms traditional numerical weather prediction systems, including the one used by the European Centre for Medium-Range Weather Forecasts.
    • Produces forecasts for atmospheric variables such as temperature, pressure, humidity, and wind speed at the surface and 13 different heights.
  • Efficiency: Runs predictions up to 15 days in just 8 minutes on a tensor processor unit (TPU), far faster than general circulation models.
    • Training the model took five days on 32 TPUs.

Applications of GenCast

  • Weather Prediction: Enhances the accuracy of short-term and medium-term weather forecasts.
    • Improves the reliability of forecasts, reducing “smoothing” effects typical of earlier machine-learning models.
  • Operational Efficiency: Requires fewer computational resources compared to high-performance supercomputing systems.
    • Can complement traditional models by providing initial conditions for machine-learning-based forecasts.

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Limitations of GenCast

  • Inapplicability to Long-Term Climate Projections: GenCast is designed for short-term weather predictions (up to 15 days) and assumes static conditions for ocean, land, and sea ice. 
    • These assumptions make it unsuitable for climate projections, which require dynamic modeling of slow-changing factors over decades.
  • Dependence on Current Weather Observations: The model relies heavily on detailed, accurate data about current atmospheric conditions to make forecasts.
    • This focus on present weather limits its ability to address long-term climatic trends, where such data becomes irrelevant.
  • Incompatibility with “Small Data” Problems: GenCast excels in weather forecasting due to the abundance of observational data (“big data”).
    • However, for climate projections, where data is sparse and phenomena evolve slowly, the model lacks the required adaptability without additional physics-informed frameworks.

Future Integration: Could integrate with physics-based methods, such as physics-informed neural networks, to improve accuracy and efficiency.

  • Machine learning and fundamental physics (e.g., fluid mechanics and thermodynamics) will coexist to advance both weather forecasting and climate science.

India marked a significant milestone in its journey towards a low-carbon economy with the unveiling of the Green Steel Taxonomy at an event, held at Vigyan Bhavan, New Delhi.

Key Highlights of the Event

  • Unveiling of the Green Steel Taxonomy: The Taxonomy sets clear guidelines for defining green steel based on the emission intensity of steel plants.
  • Commitment to a Low-Carbon Future: The release of the Green Steel Taxonomy is a pivotal step in India’s National Mission on Green Steel, aligning with the nation’s net-zero emissions goal by 2070.
  • Stakeholder Consultation: Alongside the Taxonomy, consultations on the National Mission on Green Steel (NMGS) and the Green Steel Public Procurement Policy (GSPPP) were conducted, with the government assuring that suggestions from stakeholders would be incorporated into the final versions of both documents.

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About Green Steel

  • Green Steel is steel produced with significantly lower carbon emissions compared to traditional methods.
  • The key criteria for defining Green Steel in India are based on CO2 equivalent emissions per tonne of finished steel (tfs).
  • Emissions Threshold: Steel plants with an emission intensity lower than 2.2 tonnes of CO2e per tfs will qualify for the Green Steel classification.
  • Star Rating System:
    • Five-star: Emission intensity lower than 1.6 t-CO2e/tfs
    • Four-star: Emission intensity between 1.6 to 2.0 t-CO2e/tfs
    • Three-star: Emission intensity between 2.0 to 2.2 t-CO2e/tfs
    • Steel with emissions higher than 2.2 t-CO2e/tfs will not be eligible for a Green Steel rating.
  • Review Cycle: The star rating thresholds will be reviewed every three years.

Indian Target for Green Steel

  • India has set an ambitious target to decarbonize its steel sector by reducing emissions to 2.2 tCO2 per tonne of steel by 2030. 
  • This target is a critical part of India’s overarching goal to achieve net-zero emissions by 2070.
    • The adoption of Green Steel Taxonomy will be mandatory for the Indian steel sector to meet this emissions intensity target and ensure global competitiveness.

Significance of The Green Steel Taxonomy

  • Global Leadership: India establishes itself as a frontrunner in defining green steel standards with this first-ever Green Steel Taxonomy.
  • Market Creation: This framework fosters innovation and creates a market for low-carbon steel products in India.
  • Emission Reduction: The 2.2 tCO2e/tfs threshold and star rating system incentivize emission reduction in steel production.
  • Sustainability Goal Alignment: This taxonomy aligns with India’s net-zero emission target by 2070.

Challenges In its Implementation

  • Ambitious Target: Achieving the 2.2 tCO2e/tfs target within 6 years (by 2030) can be challenging for the Indian steel sector.
  • Technology Adoption: Transitioning to cleaner technologies like hydrogen-based steelmaking requires significant investment.
  • Cost Competitiveness: Low-carbon production methods may initially be costlier, potentially impacting global competitiveness.
  • Monitoring and Verification: Developing a robust MRV system (Measurement, Reporting, and Verification) to accurately assess greenness is crucial.

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Initiatives to Support Green Steel

The Government of India, through the Ministry of Steel, has initiated several measures to promote green steel production:

  • National Institute of Secondary Steel Technology (NISST): The NISST will serve as the nodal agency for measurement, reporting, and verification (MRV), issuing greenness certificates and star ratings for steel production.
  • Incentive Framework: Stakeholders will be encouraged to adopt green steel production methods by providing technical and policy support to reduce their emissions.
  • Public Procurement Policies: The Government is working on a Green Steel Public Procurement Policy (GSPPP) to ensure that green steel is prioritized in government procurement processes.

Global Initiatives

  • European Union Green Deal Industrial Plan: Aims to accelerate the green transition of the EU’s industrial base, including steel, through financial support and regulatory frameworks.
  • Hydrogen Council’s Green Steel Initiative: Promotes the use of hydrogen-based technologies in steel production to reduce carbon emissions.
  • World Steel Association’s Climate Action Pathway: Sets out a roadmap for the global steel industry to achieve carbon neutrality by 2050.
  • LeadIT (Leadership Group for Industry Transition): A global initiative co-led by India and Sweden, focusing on accelerating the decarbonization of heavy industries, including steel.
Additional Reading: Green Steel

Soil, groundwater and surface water in Kanpur Nagar, Kanpur Dehat & Fatehpur have been found to contain heavy metals much above permissible limits.

About the National Green Tribunal (NGT)

The National Green Tribunal (NGT) was established under the National Green Tribunal Act, 2010, to ensure the effective and expeditious disposal of cases related to environmental protection and the conservation of forests and other natural resources.

Role of NGT in the Kanpur Heavy Metal Contamination Case

  1. Immediate Actions
    • Initiate Suo Motu Proceedings: NGT can take cognizance of the case based on media reports or public interest litigations (PILs).
    • Direct Pollution Control Measures: Order Uttar Pradesh Pollution Control Board (UPPCB) to inspect and identify violators, especially the tanneries and chemical industries.
  2. Remediation Orders
    • Mandate the installation or upgrade of Effluent Treatment Plants (ETPs) and Common Effluent Treatment Plants (CETPs).
    • Ensure strict compliance with zero-liquid discharge norms for industries.
  3. Compensation for Affected Residents
    • Impose Environmental Compensation on polluting industries under the “Polluter Pays Principle.”
    • Ensure medical relief and financial aid to residents suffering from chromium and mercury poisoning.
  4. Public Awareness and Participation
    • Instruct government agencies to engage communities in identifying contamination hotspots and mitigation strategies.

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More about the news

  • Kanpur, a significant industrial hub in Uttar Pradesh, faces a severe environmental and public health crisis due to heavy metal contamination.

Key Findings of the Report

  1. Heavy Metal Contamination
    • Chromium and Mercury Levels: The report indicates that both metals have entered the ecosystem and human bodies, leading to bioaccumulation.
    • Sources: Effluents from leather tanneries, electroplating units, and chemical plants are major contributors.
  2. Health Emergency
    • Chromium exposure is linked to respiratory disorders, skin diseases, and potential carcinogenic effects.
    • Mercury, a neurotoxin, can cause neurological impairments, kidney damage, and developmental issues in children.
  3. Environmental Impact
    • Groundwater contamination has rendered it unsafe for drinking.
    • Soil toxicity has affected agriculture, further perpetuating food chain contamination.
  4. Affected Areas
    • The contamination has spread beyond Kanpur to surrounding districts, suggesting inadequate containment and monitoring.

Challenges

  1. Weak Enforcement of Environmental Laws
    • Industrial norms under the Water (Prevention and Control of Pollution) Act, 1974, and Hazardous Waste Management Rules are poorly implemented.
  2. Lack of Robust Infrastructure
    • Insufficient Effluent Treatment Plants (ETPs) and Common Effluent Treatment Plants (CETPs). Many tanneries bypass these facilities.
  3. Public Health Neglect
    • Limited healthcare access and no large-scale screening for heavy metal poisoning.
    • Lower awareness and citizen participation
  4. Data Gaps
    • Lack of continuous monitoring and public data on contamination levels and health outcomes.
    • Example: Inclusion-Exclusion errors.

Incidents of Metal Contamination at global level: 

  • Sandoz Chemical Spill
  • Hinckley Water Contamination
  • Minamata Wastewater pollution

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Root Causes of the Crisis

  1. Lax Regulatory Oversight:
    • Insufficient monitoring by the Pollution Control Boards has allowed industrial units to bypass waste treatment norms.
  2. Inadequate Infrastructure:
    • Effluent Treatment Plants (ETPs) are either non-functional or operating below capacity.
  3. Lack of Awareness and Accountability:
    • Residents remain unaware of the long-term impacts, while industries evade responsibility.

Current Status and Government Response

  • NGT Intervention: The National Green Tribunal has previously issued strict orders to curb pollution in Kanpur but with limited on-ground impact.
  • Clean Ganga Mission: Efforts under the Namami Gange program aim to reduce industrial discharge into the Ganga, but enforcement gaps persist.

Recommendations to Address the Crisis

  • Immediate Steps:
    • Health Interventions: Conduct health screenings and provide medical support to affected populations.
    • Example– Usage of Telemedicine
    • Water Safety Measures: Ensure access to clean drinking water through alternative sources like tankers or filtration units.
  • Mid- to Long-term Solutions:
    • Strict Enforcement: Penalize industries violating waste discharge norms and mandate functional ETPs.
    • Remediation of Contaminated Sites: Employ bioremediation techniques and other sustainable methods to restore soil and water quality.
    • Monitoring and Surveillance: Install continuous monitoring systems in industrial clusters to track effluent discharge.
  • Community Awareness:
    • Educate residents on safe water use and advocate for their participation in pollution control measures. 
    • Example– Indore case study under Swachh Bharat Abhiyaan
  • Proactively commit to fulfilling International Frameworks and Agreements like
    • Minamata Convention on Mercury
    • Basel Convention on Hazardous Wastes
    • Aarhus Protocol on Heavy Metals

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Conclusion

  • The crisis in Kanpur underscores the urgent need for a coordinated approach involving regulatory bodies, industries, and communities to mitigate the catastrophic health and environmental impacts.
  • Robust enforcement of pollution norms, coupled with effective remediation strategies, is essential to prevent similar emergencies in the future.
  • In the quest for environmental safety vs economic development, our responsibility is to march towards sustainable development and a trusteeship model of growth.

AgeXtend

Context: Researchers from the Indraprastha Institute of Information Technology Delhi (IIIT-Delhi)  have developed AgeXtend. 

About AgeXtend

  • It is an AI based tool to  identify molecules with geroprotective (anti-ageing) properties.
    • Examples of geroprotective substances: Melatonin, Carnosine, Metformin, Rapamycin, and Nicotinamide mononucleotide (NMN).
  • It reduces time for identifying viable molecules compared to traditional methods.
  • Mechanisms: Unlike other tools, AgeXtend reveals why and how specific compounds are identified as anti-ageing.

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Benefits 

  • Rapid Identification: AgeXtend significantly speeds up the process of identifying potential anti-aging molecules compared to traditional methods.
  • Large-Scale Screening: The platform can efficiently analyze vast chemical libraries, enabling the discovery of novel compounds.
  • Predictive Power: AgeXtend can accurately predict the anti-aging potential of molecules, even those previously unknown.
  • Healthier Aging: AgeXtend could lead to the discovery of new drugs and therapies that promote healthy aging and prevent age-related diseases.

 

Desert Knight

Context: India, France, and the UAE have launched “Desert Knight,” a trilateral air combat exercise over the Arabian Sea.

Key Highlights of the Trilateral Defence Exercise

  • Objectives: Enhance trilateral defence cooperation among India, France, and UAE.
    • Foster better interoperability during complex combat scenarios.
    • Build synergy and improve combat skills of participating air forces.
  • Significance: Strengthens partnerships in the Indo-Pacific and Persian Gulf regions amid global geopolitical tensions.

India-France Joint Military Exercises

  • Shakti: Army-focused exercise.
  • Varuna: Naval exercise.
  • Garuda: Air force exercise.

India-United Arab Emirates (UAE) Defence Cooperation

  • Exercise Desert Flag: It is an annual multinational large-force employment warfare exercise hosted by the UAE Air Force.
    • The Indian Air Force (IAF) frequently participates in the“Desert Flag” exercise at the Al Dhafra air base.

 

eCourts Mission Mode Project

Context: The eCourts Mission Mode Project is under implementation for the Information and Communication Technology (ICT) development of the Indian Judiciary.

About the Project

  • The eCourts Mission Mode Project is one of the initiatives under the National e-Governance Plan.
  • Implementation Of The Project: The Department of Justice, Government of India is implementing the eCourts Project in close coordination with the eCommittee of Supreme Court of India, in a decentralised manner through the respective High Courts.
  • Phases of the Mission: 
    • Phase I (2011-2015): Focus was on basic computerization like setting up computer hardware.
    • Phase II (2015-2023): focused on ICT enablement of District and Subordinate Courts.
    • Phase III (2023-2027): It was approved by the Union Cabinet in September 2023.
      • The project envisages various new digital initiatives such as establishment of Digital and Paperless Courts, digitisation of court records both legacy records and pending cases etc.

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About National e-Governance Plan (NeGP)

  • It is an initiative of the Government of India to make all government services available to the citizens of India via electronic media
  • NeGP was formulated by the Department of Electronics and Information Technology (DeitY) and Department of Administrative Reforms and Public Grievances (DARPG).

 

EPFO Plans ATM Card Facility for Fund Withdrawal

Context: The Employees’ Provident Fund Organisation (EPFO) is working towards rolling out a facility that will allow members to withdraw funds from their corpus through an ATM card.

Reasons for Introducing the ATM Card Facility

  • Ease of Access: Members can withdraw funds directly without needing approvals for withdrawals within a pre-set limit.
  • Improving User Experience: Eliminates manual processes, reducing delays and providing a bank-like facility.
  • Addressing High Claim Rejection Rates: The move by the EPFO for an ATM-card type facility comes in the wake of concerns over a high rate of rejection of EPF final settlements in recent months.

Current Provident Fund Withdrawal Rules

  • EPFO members can withdraw the entire PF balance at age 55.
  • One year prior to retirement, they are allowed to take out 90 per cent of the funds.
  • Partial withdrawals are allowed for medical emergencies, unemployment, marriage etc.

About Employees Provident Fund Organisation (EPFO) 

  • The Employees’ Provident Fund Organisation (EPFO) is a statutory body that oversees social security schemes for workers in India under the Ministry of Labour and Employment.
  • Key Responsibilities: It administers the retirement plan for employees, which includes:
    • Provident Fund
    • Basic Pension Scheme
    • Disability/Death Insurance Scheme
  • International Coverage: EPFO also manages social security agreements with other countries, ensuring that international workers in countries with bilateral agreements are covered under EPFO plans.

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Saurashtra fossils

Context: A new study on archaeological sites in Gujarat’s Saurashtra peninsula has questioned the theory that early humans migrated solely along coastal routes. 

Key Highlights

  • Investigated the Bhadar and Aji river basins in Saurashtra, Gujarat.
    • Tools discovered in the Bhadar and Aji river basins were made from materials like chert, jasper, and chalcedony, but there is no evidence of coastal habitation
      • Estimated Age: Artefacts dated to be 56,000 to 48,000 years old, from the Middle Palaeolithic age.

Coast vs. Inland Migration

  • Coastal Route Theory:
    • British archaeologist Paul Mellars (2013) suggested humans migrated from Africa to Australia via coastal routes during the Late Palaeolithic (40,000–10,000 years ago).
    • This theory predicts the presence of Late Palaeolithic artefacts, such as sharper blade-like tools, along the coast of Saurashtra in India
  • Findings of the New Study:
    • Archaeological evidence (Middle Palaeolithic artefacts ) from the Saurashtra peninsula indicates that early human settlements were primarily inland. 
    • No Late Palaeolithic artefacts were found in Saurashtra.
    • Inland Dispersal Evidence:
      • Evidence suggests human ancestors migrated through central and peninsular India, moving inland rather than sticking to the coast.
    • No Marine Resources:
      • If humans had relied on coastal routes, they would have used marine resources like fish and shellfish.
        • The study found no evidence of such food dependency.

 

Odisha Govt’s External Loan for PVTG Development Under Scrutiny

Context: The Odisha government plans to secure a loan of ₹734.86 crore from the International Fund for Agricultural Development (IFAD) to implement Phase II of PVTGs. 

About Particularly Vulnerable Tribal Groups

PVTG

  • PVTGs are a subcategory of Scheduled Tribes in India.
  • This classification helps identify endangered tribal groups requiring priority support.
  • Origin of Classification
    • The Dhebar Commission (1960-1961) first introduced the classification of these tribal groups.
    • Initially, these groups were called Primitive Tribal Groups (PTGs).
    • In 2006, the Indian government renamed them as Particularly Vulnerable Tribal Groups (PVTGs) to better reflect their unique challenges and vulnerabilities.
  • Criteria for Identifying PVTGs : The Government of India identifies PVTGs based on the following factors:
    • Low literacy rates among the group.
    • Use of pre-agricultural level of technology.
    • Economic vulnerability or lack of financial stability.
    • Stagnant or declining population trends
  • PVTGs in Odisha
    • Odisha is home to 13 PVTGs, the highest number among all states and union territories in India.
    • The PVTGs in Odisha include:
      • Birhor, Bondo, Chuktia Bhunjia, Didayi, Dongria Khond, Hill Kharia, Juang, Kutia Khond, Lanjia Saora, Lodha, Mankidia, Paudi Bhuyan, and Saora.

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What is an international fund for agricultural development?

  • It  is an international financial institution and a specialised agency of the UN.                   
    • It aims to improve agricultural development and livelihood in developing counties . 
  • Established: 1977
  • Headquarter: Via Paolo di Dono, 44, 00142 Rome, Italy
  • Target Groups: Smallholder farmers, Pastoralists.
  • Foresters, Fishers, and Small-scale rural entrepreneurs.
  • Key Assistance Areas: Disaster preparedness, Social learning, plan agricultural activities, Enables Technology transfer.

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