Current Affairs – February 05, 2025

{GS2 – IR – India-US} India-US Immigration Challenges

• Context (IE): India has agreed to take back its illegal immigrants from the US, ensuring that legal immigration channels remain unaffected amid President Donald Trump’s strict deportation policies.

India’s Key Concerns

• H-1B Visa Policy: Indian nationals received 72% of H-1B visas issued between 2022-2023, with major Indian IT firms securing approvals for 20,000 employees.
• Indian Student Presence: As of May 2024, 3.51 lakh Indian students were enrolled in the US, primarily in STEM programs.
• Economic Contributions: Indian professionals and students contribute significantly to the US economy.
• Risk of Political Fallout: Publicized deportations could create domestic political challenges for India, as public perception may not distinguish between legal and illegal immigration.

India’s Diplomatic Strategy

• Engagement with US Leadership: Indian PM and President Trump held discussions on immigration, with India ensuring that legal travel channels remain open.
• High-Level Diplomatic Meetings: External Affairs Minister engaged with US officials to address immigration concerns.
• Strategic Concessions: India’s willingness to accept deported illegal immigrants is a low-cost move aimed at protecting the larger interests of Indian professionals and students in the US.

Way Forward: India’s Diplomatic Approach

• Balancing Concessions: Willingness to accept illegal returnees while securing favourable long-term immigration policies.
• Negotiating Visa Policies: Continued diplomatic engagement to ensure smooth issuance of H-1B and student visas.
• Monitoring Policy Shifts: Close coordination with US policymakers to mitigate any adverse changes in visa and deportation policies.

{GS2 – IR – UN} US Exit from WHO

• Context (TH): The US, under Trump, signed an executive order to exit WHO, citing COVID-19 mishandling and needed reforms.

About World Health Organisation (WHO)

• WHO is a specialised agency of the UN responsible for international public health.
• It was established on 7 April 1948. The day is now being celebrated every year as World Health Day.
• Headquarters: Geneva, Switzerland.
• The World Health Report (WHR) is a series of annual reports produced by the WHO.
• Upon the US withdrawl, it will have 193 members (including India). All UN member states except for Liechtenstein (192 countries), plus Cook Island and Niue.
• It became the first specialised agency of the UN to which every member subscribed.

Objectives and Functions of WHO

• Lead global efforts to expand universal health coverage.
• Focus on the areas of disease prevention, control and elimination, and the promotion of health equity and well-being.
• Provide leadership on global health issues, set standards for public health, and provide technical assistance and support for capacity building to countries.
• Collaborate with various partners, including other UN agencies, governments, civil society organizations, and the private sector.
• Enhance global preparedness and response to health emergencies.
• Set global health standards and guidelines by facilitating health research and policy development.
• Monitor emerging health issues and coordinate responses.

Challenges for Global Health Governance

• Funding Uncertainty: WHO relies heavily on voluntary contributions, which are unpredictable.
• Underrepresentation of Global South: Health priorities of developing nations often receive insufficient funding.
• Dependency on High-Income Nations: WHO’s programs are largely influenced by Western donors.
• Need for Institutional Reforms: Addressing inefficiencies, increasing transparency, and decentralizing decision-making.

Reasons for US Withdrawal

• Mishandling of COVID-19 Pandemic: WHO’s delayed response and alleged failure to hold China accountable.
• Perceived Political Bias: Accusations of WHO favoring certain member states.
• Financial Burden: US contributed nearly $1.3 billion in voluntary funding (2022-2023), a significantly higher amount than other nations.
• Bureaucratic Inefficiencies: Concerns over slow decision-making and lack of reforms.

Impact of US Exit

On WHO

• Funding Shortfall: The US provides nearly 20% of WHO’s budget, affecting global health programs.
• Disruptions in Health Initiatives: Programs like immunization, polio eradication, and pandemic preparedness may suffer.
• Reduced Technical Expertise: Loss of the US collaborations, including those with the CDC.
• Challenges in Reform Implementation: Reduced influence may slow down institutional reforms.

On Global Health Landscape

• Financial Gap: Developing nations reliant on WHO funding may face difficulties.
• Geopolitical Shifts: China and other emerging economies could gain greater influence.
• Potential Fragmentation: Alternative alliances or funding mechanisms may emerge outside WHO.

On the US

• Limited Access to Global Health Data: Loss of real-time updates on pandemics and emerging diseases.
• Vaccine Preparedness Issues: Challenges in accessing virus strain samples critical for vaccine development.
• Reduced Global Influence: Diminished role in shaping international health policies.

Opportunities for the Global South

• Increased Role in Global Health Governance: Countries like India, Brazil, and South Africa can step up contributions. Platforms like BRICS can supplement WHO funding and expertise.
• Investment in Public Health Expertise: Training professionals in global health to reduce reliance on Western experts.
• Decentralizing WHO’s Structure: Relocating WHO headquarters to Asia or Africa for better resource allocation.

Way Forward

• Diversified Funding Mechanisms: Encourage more nations to contribute to WHO’s budget to reduce dependency on a few donors.
• Strengthening WHO’s Credibility: Implementing transparency and accountability measures.
• Regional and Collaborative Health Frameworks: Developing alternative funding sources and technical collaborations.
• Reintegration of US: Possibility of future US re-engagement under a new administration.

{GS2 – IR – USA} United States Agency For International Development (USAID)

• Context (IE): USAID, a prominent agency under the US government, is facing scrutiny and reorganization under the Trump administration and Elon Musk’s Department of Government Efficiency (DOGE).

USAID Overview and Role

• Establishment: Founded in 1961 via an executive order by President John F. Kennedy.
• Purpose: Lead agency for U.S. international humanitarian and development efforts, assisting in poverty alleviation, education, healthcare, and infrastructure development globally.
• Funding: In FY2023, managed $43 billion, aiding over 130 countries. Top recipients include Ukraine, Ethiopia, Jordan, and others.
• Workforce: Employs over 10,000 personnel, with two-thirds serving abroad; manages more than 60 missions worldwide.

Functions and Operations

• Aid Mechanism: Provides funding through NGOs, foreign governments, international organizations, and U.S. agencies for specific projects.
• Geopolitical Influence: Integral to U.S. foreign policy, used as a tool to strengthen alliances and counter adversaries.
• National Security: Often referred to as a “national security toolkit” due to its role in shaping global relations and combating threats.

Historical Background

• Cold War Era: USAID was central to U.S. efforts to counter communist influence, especially in Latin America and other developing regions.
• Marshall Plan: USAID’s precursor, providing aid to war-torn Europe post-WWII to curb Soviet expansion.
• Alliance for Progress: Initiated in 1961, aiming to promote economic development and democracy in Latin America.

USAID’s Impact on India

• Early Assistance: US aid to India dates back to 1951, initially for emergency food assistance and later for infrastructure and development.
• Key Contributions: Supported the establishment of agricultural universities, IITs, regional engineering colleges, and health initiatives (immunization, family planning, HIV/AIDS, etc.).
• Evolution: Transitioned from food aid to capacity-building and economic development support.

Challenges and Decline in India

• Conditional Aid: USAID’s assistance often came with conditions, such as the 1965 loan for a fertiliser factory in Chennai with restrictions on distribution.
• India’s Rejection of Conditional Aid: In 2004, India stopped accepting foreign aid with conditions, leading to a decline in US assistance.
• Current Funding: US aid to India in FY2024 was $141 million, significantly lower than the $208 million in 2001.

Current Issues

• Trump Administration’s Reform: Efforts to reduce US federal spending, including criticism of USAID by Trump and Musk, focusing on reducing government bloat.
• Musk’s Criticism: Musk, appointed by Trump, called for dismantling USAID, labeling it a “criminal organization” amid broader government efficiency reforms.

{GS2 – Vulnerable Sections – SCs} SC Ruling on Marginalized Communities in Knowledge Economy

• Context (IE): SC’s recent verdict recognizes intellectual property loss under SC/ST (Prevention of Atrocities) Act, setting a precedent for safeguarding marginalized communities in the knowledge economy.

Key Aspects of the Verdict

• Legal Recognition of Intellectual Property: SC upheld the Bombay High Court’s interpretation of “property” under the Atrocities Act to include intellectual property.
• Compensation for Loss: The ruling affirms that loss of research work, academic data, and creative contributions is compensable under the law.
• Judicial Precedent: Reinforces the right of Dalit and Adivasi scholars to legal protection for their intellectual contributions.
• Broader Impact: Strengthens anti-caste jurisprudence and ensures due recognition and respect for historically disadvantaged communities in academia and research.

Way Forward

• Stronger Legal Safeguards: Courts should continue interpreting the Atrocities Act dynamically to address contemporary caste discrimination.
• Protection of Intellectual Contributions: Institutions must ensure legal mechanisms to prevent the misappropriation of marginalized scholars’ work.
• Accountability for Academic Theft: Stricter action against plagiarism and unauthorized use of research is necessary.
• Empowering Marginalized Scholars: Legal recognition of intellectual property rights can inspire Dalits and Adivasis to assert knowledge as a tool for empowerment.

{GS3 – Agri – Crops} Extra-Long Staple (ELS) Cotton in India

• Context (IE): The Union Budget 2025-26 announced a five-year mission to improve cotton productivity and promote Extra-Long Staple (ELS) cotton farming in India.

ELS Cotton

• Derived from Gossypium barbadense, also known as Egyptian or Pima cotton, it is a premium cotton variety with fibre lengths of 30 mm and above.

Characteristics

• Longer fibres ensure finer, stronger, and smoother yarns.
• Used in luxury textiles due to superior quality and durability.
• Does not require intense finishing, preserving natural softness and strength.

Distribution

• Major Producers: Egypt, China, Australia, Peru, and US
• Indian Regions: Limited cultivation in Atpadi taluka (Maharashtra), Coimbatore (Tamil Nadu), Karnataka, and Madhya Pradesh.

Comparison of Cotton Varieties

• Short Staple Cotton (Gossypium hirsutum): Fibre length below 25 mm, used in low-cost textiles.
• Medium Staple Cotton (Gossypium hirsutum): Fibre length of 25-28.6 mm, widely grown in India (96% of total cotton production).
• ELS Cotton (Gossypium barbadense): Fibre length above 30 mm, superior quality.

Importance of ELS Cotton for India

• High Demand: India imports 90% of its annual ELS cotton requirement (20-25 lakh bales) due to domestic production shortages.
• Textile Industry Benefits: Essential for high-end fabrics and export-oriented textile manufacturing.
• Economic Potential: Reducing import dependency can boost domestic cotton farming and textile competitiveness.

Issues with ELS Cotton in India

• Low Yield: Produces only 7-8 quintals per acre compared to 10-12 quintals for medium staple cotton.
• Market Challenges: Farmers struggle to get premium prices due to weak market linkages.
• Technological Gaps: Limited access to advanced seed varieties and modern farming techniques; low adoption of pest-resistant GM seeds.
• Pest Infestation: Increased vulnerability to pests reduces cotton productivity and farmer profitability.
• Policy Barriers: Farmers demand approval for herbicide-tolerant Bt cotton; minimal MSP difference (₹7,121 vs ₹7,521) discourages ELS cotton cultivation.

Way Forward: ‘The Cotton Mission’

• Increase Productivity: Improve per-acre yields by using advanced seeds, better irrigation, and optimized farming practices.
• Enhance Sustainability: Promote eco-friendly farming practices to reduce environmental impact.
• Strengthen Market Linkages: Provide direct market access and premium pricing for farmers to ensure better revenue.
• Support R&D: Focus on developing improved ELS cotton varieties through scientific advancements.
• Reduce Imports: Boost domestic ELS cotton production to reduce India’s dependency on imports.
• Technology Support: Develop high-yield, pest-resistant ELS cotton seeds and encourage GM cotton adoption for better productivity.
• Infrastructure & Market Linkages: Strengthen supply chains, promote farmer cooperatives, and establish industry partnerships for better price realization.
• Policy Interventions & Financial Support: Review GM seed policies, provide financial incentives, and increase MSP to encourage ELS cotton cultivation.

{GS3 – IE – Development} Union Budget 2025-26: Revitalizing Industrial Growth

• Context (TH): The Union Budget 2025 emphasizes stimulating aggregate demand.

Fiscal Consolidation and Growth Projections

• GDP Growth Forecast: A conservative estimate of 10.1% for FY26, aiming for realistic tax revenue projections amidst global uncertainties.
• Fiscal Deficit Reduction: Commitment to lowering the fiscal deficit, with gross borrowings projected at ₹14.8 trillion, slightly up from ₹14 trillion in FY25.

Reviving Industrial Growth: Key Approaches in Budget

Broad-Based Economic Measures

• Capital Expenditure (Capex): Allocation increased to ₹11.2 lakh crore, focusing on key sectors like roads, railways, and defence, generating significant economic activity.
• Public-Private Partnerships (PPPs): Strengthening urban infrastructure with bond financing, ensuring long-term sustainability.
• Income Tax Reforms: Introduction of major concessions for individuals to boost consumption.
• Demand Stimulation: Provide tax relief through revised income tax slabs and implement welfare schemes like as PM KISAN, MGNREGA, and PM Awas Yojana to boost consumption and economic revival.

Targeted Sector-Specific Policies

• Manufacturing Focus: Prioritise electronics, toys, and footwear to capture shifting global supply chains and establish special leather and toy clusters to boost domestic production and employment.
• Export Promotion: Launch Export Promotion Mission (a collaboration between Commerce, MSME, and Finance Ministries), develop BharatTradeNet for streamlined trade, promote Global Capability Centres (GCCs) in Tier-2 cities, and upgrade Air Cargo Warehousing for efficient logistics.
• MSME Growth: Increase the Modified Interest Subvention Scheme loan limit to ₹5 lakh and support 5 lakh women entrepreneurs from SC/ST backgrounds through the New Women Entrepreneurship Scheme.

Challenges in the Industrial Sector

• Fluctuating Industrial Growth: Manufacturing exhibits frequent fluctuations, leading to inconsistent employment creation and GDP growth.
• Sluggish Export Growth: Challenges include low productivity, competitiveness, and limited research and development activities.
• Lagging Private Investments: Despite government incentives, private sector investments remain below expectations.

Way Forward

• Infrastructure Development: Emphasis on enhancing infrastructure to support industrial activities.
• Tax Reforms: Rationalization of tax structures to improve the business environment.
• Sustainability Incentives: Encouragement of sustainable practices within industries.
• Support for MSMEs: Proposed increases in investment and turnover limits to foster growth, with policy support for productivity, job creation, and industrial strengthening.

{GS3 – IE – Industry} Stagnation in India’s Shipping Industry

• Context (TH): Despite significant maritime sector development, India’s shipping industry struggles with stagnation due to financial, regulatory, and tax challenges.

Progress Under Sagarmala

• Port Modernization & Connectivity: Sagarmala has driven large-scale port upgrades & logistics improvements.
• Project Implementation: Several port-led infrastructure projects are completed, ongoing, or in development under significant investments.
• Future Economic Goals: Targets include a $5 trillion economy by 2027 and $2 trillion in exports by 2030.

Stagnation in the Shipping Industry

• Slow Cargo & Fleet Growth: Port cargo and Indian-registered ships have grown marginally, with a low annual expansion rate.
• Declining Vessel Handling: The number of vessels at Indian ports has reduced, impacting port efficiency.
• Aging Fleet & Global Rank Drop: Despite younger fleet, India’s global ship ownership ranking has declined.
• Market Share Loss: Indian shipping is losing competitiveness to foreign vessels in EXIM trade and to road/rail in domestic transport.

Challenges Hindering the Shipping Industry

• Capital & Financing Issues: High borrowing costs, short loan tenures, and lack of ship-based collateral hinder growth.
• Unfavorable Tax Policies: Integrated GST (IGST) disparity and TDS on seafarers make Indian ships less competitive than foreign vessels.
• Shipbuilding Deficiencies: Poor infrastructure, outdated technology, costly inputs, and skill shortages limit domestic shipbuilding.
• Regulatory & Structural Barriers: Rigid loan restructuring and minimal oversight for foreign-owned vessels weaken India’s market position.
• Foreign Competition: Foreign-flagged vessels benefit from easier financing, lower taxes & lenient regulations.

Govt Policy Measures

• Maritime Development Fund: ₹25,000 crore fund for shipowners, with 49% government contribution, raising sustainability concerns.
• Infrastructure for Large Vessels: Shipping companies gain financial benefits akin to other infrastructure sectors.
• Customs Duty Exemption: 10-year extension for duty exemption on shipbuilding spares and equipment.
• Financial Assistance Policy: Includes shipbreaking incentives and expanded Tonnage Tax Scheme for inland vessels to boost domestic trade.

Way Forward

• Long-Term Financing: Need for 7-10 year loans with lower interest rates to modernize fleets.
• Shipbuilding Infrastructure Expansion: Investment required in new shipyards and domestic industries to reduce import reliance.
• Tax Reforms: Removal of 5% Integrated GST (IGST) on ship purchases and TDS exemption for seafarers to boost competitiveness.
• External Commercial Borrowings (ECBs): Strategic use of ECBs to address funding gaps in shipbuilding and shipping sectors.
• Green Technology Investment: Focus on eco-friendly shipbuilding and retrofitting to meet global emission reduction targets.

{GS3 – S&T – BioTech} Bacteria-based Solutions for Plastic Waste Management

• Context (TH): Scientists are exploring bacterial and microbial solutions to degrade plastic waste.

Plastic Degrading Bacteria and Enzymes

• Microbes can biodegrade plastics over months (e.g., 22 months for PET) through enzymatic action, converting plastic into carbon dioxide, water, and biomass. Some enzymes can degrade up to 90% of PET in 17 hours.
• Ideonella sakaiensis: Bacterium discovered to break down PET plastic using two enzymes.
• PETase (breaks down PET) & MHETase (further degrades PET into terephthalic acid and ethylene glycol).

Microbial Solutions for Different Types of Plastics

• Polyethylene Terephthalate (PET): Common in bottles & packaging, targeted by Ideonella sakaiensis.
• Polyolefins & Polyamides: Degraded by bacteria like X-32, which also breaks down challenging plastic bonds.

Technological Advances

• Enzyme Engineering: Efforts to speed up enzyme activity for industrial-scale use, e.g, Carbios developed a heat-stable enzyme to improve degradation speed.
• Bacterial Spore-infused Plastics: Bacillus subtilis spores can be embedded in thermoplastics to degrade plastics under compost conditions.

Technological Challenges

• Scalability: Scaling microbial and enzyme-based methods for industrial applications is a major hurdle.
• Bioreactors: Controlled environments to accelerate microbial degradation of plastic waste at large scales.
• Enzyme Purification and Efficiency: Isolating and producing large quantities of effective enzymes remains complex.
• Biodegradation Speed: Speed is critical for industrial viability; enzymes and microbes need to break down plastics quickly to be economically feasible.

{Prelims – S&T – Space} Asteroid 2024 YR4

• Context (IE): A newly discovered asteroid, 2024 YR4, has a slight chance of hitting Earth in 2032.

Key Details of Asteroid 2024 YR4

• Size: Estimated between 40m to 100m in diameter (likely over 50m).
• Discovery: Detected in December 2024, by ATLAS telescope, Chile.
• Orbit: Classified as a Near-Earth Object (NEO) with an eccentric orbit, meaning it moves in an elongated path around the Sun.

Impact Risk Assessment

• Impact Probability: Initially 1.2% chance (as of January 2025) of hitting Earth on December 22, 2032.
• Rated 3 (out of 10) on the Torino Scale (used to assess the potential impact hazard of an asteroid), indicating close encounter, but no immediate threat.
• Potential Damage: Localized destruction if impact occurs. A 40m asteroid could devastate a city, similar to the 2013 Chelyabinsk event.

Response Measures

• Planetary Defense: International Asteroid Warning Network (IAWN) and Space Mission Planning Advisory Group (SMPAG) monitor and develop mitigation strategies.
• DART Mission: The 2022 NASA Double Asteroid Redirection Test showed asteroid deflection is feasible. If risk increases, this technology could be used for planetary defense.

{Prelims – S&T – Space} Discovery of Gaia BH3

• Context (TH): Astronomers have discovered Gaia BH3, a massive black hole located about 2,000 light years away in the constellation Aquila, using the ESA Gaia spacecraft.

Astronomical Significance

• Gaia BH3 is the first black hole found in the Milky Way’s outer reaches, and its mass exceeds Cygnus X-1, the previous largest known black hole in the galaxy.
• Unlike other black holes, Gaia BH3 doesn’t show X-ray emissions, indicating it isn’t actively consuming surrounding matter.

Black Hole Discoveries by Gaia Spacecraft

• Gaia BH1: The first black hole discovered by Gaia, located 1,560 light years away.
• Gaia BH2: A second black hole discovered in 2022, with a mass of 9 solar masses.
• Gaia BH3: The largest stellar-mass black hole found in the Milky Way, with 33 solar masses, located 2,000 light years away in the constellation Aquila.

Detection Method

• Doppler Effect: Observing the shift in the star’s light to determine its motion and infer the mass of an unseen object (black hole).
• Kepler’s Third Law: Used to calculate mass of the dark object by studying the velocity of the star’s orbit.