DIGIPIN

Context: The Indian government has launched a new digital address system called DIGIPIN that aims to enable the precise identification of locations in the country.

What is DIGIPIN?

• DIGIPIN stands for Digital Postal Index Number.
• It helps in accurately identifying locations across India, especially in places with unclear or unstructured addresses.
• Developed by : The Department of Posts in collaboration with IIT Hyderabad and ISRO’s National Remote Sensing Centre. 

Key Features of DIGIPIN

• Unique Alphanumeric Code: DIGIPIN provides a unique 10-character alphanumeric code for every 4×4 square meter area , ensuring pinpoint accuracy.
• Wide Coverage: Includes urban areas, villages, forests, and maritime zones.
• Interoperable & Open-Source: It is open-source, interoperable, geo-coded, and privacy-focused, as it does not store personal data.
• Privacy-Focused: Stores only geographic coordinates, not personal details.

Benefits of DIGIPIN

• Better Deliveries: Improves accuracy for services like Amazon and Flipkart.
• Faster Emergency Response: Helps police, ambulances, and fire services reach locations quickly.
• Simplifies Addressing: DIGIPIN enhances address precision without replacing the traditional PIN code and is good for digital communication between citizens and institutions.

Strait of Hormuz

Context: Iran may close the Strait of Hormuz amid rising tensions with Israel.

About Strait of Hormuz

• The Strait of Hormuz is a narrow waterway that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. 
• It lies between Iran (to the north) and Oman and the UAE (to the south).
• At its narrowest point, the strait is only 33 km (21 miles) wide, with even narrower lanes designated for shipping.

Significance

• World’s Most Important Oil Transit Chokepoint: Around 20% of global oil consumption—approximately 17 million barrels per day—passes through the strait. Any disruption could cause a massive spike in global oil prices.

Impacts India

• Energy Prices: Nearly two-thirds of India’s crude oil and about half of its LNG pass through Hormuz. Any blockade would send oil and gas prices soaring, leading to higher domestic inflation, particularly in transportation and food.
• Currency Pressure: Rising import bills would widen the current account deficit and weaken the rupee.
• Sectoral Impact: Aviation, logistics, tyres, and manufacturing sectors could face cost surges.

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