Current Affairs – February 06, 2025

Table of contents

{GS2 – IR – Issues} US-China Trade War

Context (IE | IE | IE): The US has imposed tariffs on imports from Canada, Mexico, and China, triggering retaliatory measures and escalating global trade tensions.

Tariff Imposition and Rationale

Tariffs on Canada and Mexico: 25% tariffs on all imports from Canada and Mexico, with a 10% rate on energy imports from Canada.
Tariffs on China: 10% tariffs on Chinese imports.
Rationale: Officially to curb illegal immigration and drug trafficking, but widely seen as a pretext.
Real Motives: To assert economic power and generate revenue to fund tax cuts.
Revenue Potential: Tariffs could raise $320 billion annually from Canada and Mexico, and $480 billion if extended to the EU.
Tax Cuts: The Tax Cuts and Jobs Act of 2018, set to expire in 2025, needs extension, costing $460 billion annually.

Retaliation and Global Reactions

Canada’s Response: 25% tariffs on $155 billion worth of US imports, including alcohol and fruit.
Mexico’s Response: Retaliatory tariffs and countermeasures, rejecting claims of government ties to criminal organizations.
China’s Response: 15% tariffs on coal and liquefied natural gas, 10% on oil and agricultural equipment.
Blacklisting US Firms: PVH Corp (Calvin Klein, Tommy Hilfiger) and Illumina added to the “unreliable entity” list.
Google Investigation: Suspected of violating anti-monopoly laws, investigation initiated.
EU Threats: Trump threatened 25% tariffs on EU imports, citing unfair trade practices.
Global Impact: Tariffs could disrupt supply chains, increase consumer prices & lead to a global trade war.

Economic Risks

Inflation Concerns: Tariffs could worsen inflation, with the PIIE estimating a $1,200 annual cost for the average US household.
Job Market: No substantial positive impact on US employment; automation and higher input costs may harm other sectors.

India’s Position

India’s Exemption: Initially exempted from US tariffs, India has proactively reduced tariffs on US exports.
Opportunities for India: US tariffs on Chinese goods create opportunities for Indian exports, especially in pharmaceuticals, gems, and textiles.
Sectors at Risk: High-value Indian exports like pharmaceuticals, gems, and textiles may face scrutiny in future US trade actions.
India’s Trade Deficit: Ninth-largest contributor to the US trade deficit, accounting for 3.2%.

{GS2 – IR – Middle East} Trump’s Proposal for Gaza: Implications and Reactions

Context (IE | IE | IE): President Trump’s proposal to take over Gaza threatens the fragile peace process following a recent ceasefire between Israel and Hamas.

Overview of Trump’s Proposal

Proposal: Trump suggested a US takeover of Gaza, aiming to transform it into a prosperous region akin to the “Riviera of the Middle East.”
Humanitarian Framing: He claimed the plan would spur economic development and provide housing for Gaza’s 1.8 million residents, while controversially suggesting their relocation to Egypt or Jordan.
Military Involvement: Trump indicated the possibility of deploying US troops to enforce this plan, a stark deviation from his previous criticisms of US military interventions.

Historical Context

The proposal recalls the 1948 Nakba, where 700,000 Palestinians were displaced during the Arab-Israeli conflict, highlighting the sensitive historical backdrop of forced displacements.
The British Balfour Declaration of 1917 and subsequent events led to the establishment of Israel, impacting Palestinian sovereignty and identity.

Global Reactions

Condemnation from Hamas: Hamas condemned the proposal as an alignment with Israel’s far-right agenda, warning it could lead to renewed conflict.
Support from Israel: Israeli PM Netanyahu backed Trump, viewing the plan as beneficial for Israel’s interests.

Rejection by Arab Nations

Saudi Arabia: Firmly supports an independent Palestinian state & rejects displacement of Palestinians.
Jordan and Egypt: Categorically rejected the idea of accepting Palestinian refugees, citing national security concerns.

Implications

Identity and Resistance: The Palestinian experience of the Nakba remains central to their identity.
Forced Displacement Concerns: The proposal risks violating international laws against forced displacement, raising fears of ethnic cleansing among Palestinians.
Potential for Increased Tension: Forced relocations could trigger military actions, destabilizing the region further and complicating the path to a two-state solution.
Impact on Regional Stability: Renewed conflict in Gaza could escalate tensions with Hezbollah and reignite the Israel-Iran proxy war, undermining regional stability.

Long-term Consequences

Shift in US Foreign Policy: Trump’s approach marks a significant departure from traditional US support for a two-state solution, raising questions about future diplomatic relations in the region.
Potential Isolation of Allies: Countries involved in the Abraham Accords may reconsider their commitments in light of the proposal, threatening US diplomatic objectives.

{GS2 – MoCA – Schemes} Prime Minister’s Internship Scheme

Context (IE): 8,000 candidates have taken up offers in the pilot phase of PM Internship Scheme.

About the Scheme

Main Goal: To provide 1 crore youth with internships over five years in top 500 companies.
Enhancement of Employability: The scheme is aimed at enhancing youth employability through real-world hands-on job experience & focuses on skill development across multiple sectors.
Part of Atmanirbhar Bharat: Contributes to India’s vision of self-reliance by nurturing skilled workforce.
Managed by: Managed through an online portal by the Ministry of Corporate Affairs (MCA).

Financials and Budget Allocation

Overall Budget: ₹2 lakh crore allocated under the Prime Minister’s Package for Employment and Skilling.
Scheme-Specific Allocation: ₹2,000 crore for 2024-25, with ₹380 crore revised estimate for 2024-25 and ₹10,831 crore allocated for 2025-26.

Eligibility Criteria

Age Limit: Youth aged 21-24 years who are not in full-time employment or education.
Educational Requirements: Candidates must have completed at least high school or hold certificates from ITI/polytechnic institutes, or graduate degrees (e.g., B.A., B.Sc., B.Com).
Exclusions: Candidates from IITs, IIMs, and those holding advanced degrees (MBA, CA) are ineligible.
Reservation: Scheme follows the same reservation structure as government jobs for SCs, STs, OBCs, and disabled candidates.

Internship Details

Target Internships: Includes sectors like pharma, auto, agriculture, and healthcare.
Internship Duration: 12-month internships are offered.
Stipend: ₹5,000 per month (Direct Benefit Transfer (DBT) of ₹4,500 from the government, ₹500 from the company’s Corporate Social Responsibility (CSR) fund).
Support for Incidentals: A one-time ₹6,000 grant to cover incidental expenses.
Insurance: Interns are covered under PM Jeevan Jyoti Bima Yojana.

Enhanced Features Introduced Post-Pilot Phase

Geotagging of Locations: New features like geotagging and company details will be included for improved transparency.
Helpline and Grievance Redressal: A multilingual helpline and grievance redressal system will be provided.

{GS2 – Polity – IC – FRs} Rajasthan’s Anti-Conversion Bill

Context (IE): Rajasthan government introduced the Rajasthan Prohibition of Unlawful Conversion of Religion Bill to prevent coercive religious conversions.

Religious Conversions

Religious conversion is the adoption of a set of beliefs identified with one particular religious denomination to the exclusion of others.
Thus, “religious conversion” would describe abandoning adherence to one denomination and affiliating with another. E.g, Christian Baptist to Methodist or Catholic, Muslim Shi’a to Sunni.
In some cases, religious conversion “marks a transformation of religious identity and is symbolised by special rituals”.

Previous Attempts at Anti-Conversion Laws in Rajasthan

2006 Attempt: Rajasthan introduced the Rajasthan Dharma Swatantraya Vidheyak to curb conversions through fraud or force. The bill was rejected by the President after opposition.
2013-2017 Attempts: Despite revising the bill, it failed to pass. In 2017, the Rajasthan High Court issued guidelines to curb forcible conversions.

Key Provisions of Rajasthan’s Anti-Conversion Bill

Unlawful Conversion Definition: Unlawful conversion includes coercion, force, allurement (cash, benefits, jobs, education), or fraud.
Burden of Proof: Reverses burden of proof: the accused must prove conversion was not induced by force, fraud, or coercion.
Filing an FIR: Allows blood relatives of aggrieved to file FIRs in suspected cases of unlawful conversion.
Penalties: Punishment ranges from 1-10 years in jail, depending on the victim’s status (minor, woman, SC/ST) with fines up to Rs 50,000 for mass conversions.
Voluntary Conversion Process: Converts must submit declarations 60 days in advance to the District Magistrate (DM). Violations can lead to imprisonment and fines.
Investigation: The DM will oversee investigations into the motives and intentions behind conversions, involving police for verification.

Significance of the Bill

Addressing Vulnerability: Aimed at preventing forced conversions, particularly of vulnerable groups like tribals.
Constitutional Rights: The Bill asserts that the right to religious freedom does not extend to a collective right to proselytize, ensuring individual freedom.
Love Jihad and Fraud Claims: Responds to concerns of forced conversions, including allegations of “love jihad.”

Status of Anti-Conversion Laws in India

Over the years, several states have enacted ‘Freedom of Religion’ legislation to restrict religious conversions carried out by force, fraud, or inducements.
- E.g. Orissa Freedom of Religion Act, 1967; Gujarat Freedom of Religion Act, 2003; Jharkhand Freedom of Religion Act, 2017; Uttarakhand Freedom of Religious Act, 2018; The Karnataka Protection of Right to Freedom of Religion Act, 2021, Uttar Pradesh Prohibition of Unlawful Conversion of Religion Act
National Law: There is no national anti-conversion law, though several states have implemented their own legislation on the matter.

Constitutional Context

Article 25 guarantees the right to freedom of religion but does not specifically address conversion.
Supreme Court Cases: Key rulings (e.g., Rev. Stanislaus v. State of Madhya Pradesh, Sarla Mudgal v. Union of India) have addressed issues of forced conversions, setting precedents for state-level regulation.

Context (IE): A bribery case involving NAAC inspection members and KLEF officials has raised concerns about the accreditation process.

What is NAAC?

Establishment: National Assessment and Accreditation Council was set up in 1994 under the University Grants Commission (UGC).
Purpose: Assess and accredit higher education institutions (HEIs) in India.
Funding: Autonomous body funded by UGC.
Headquarters: Bangalore.
Mandate: Ensures quality assurance in HEIs, promoting the integration of quality into the functioning of institutions.

NAAC Grading Process

Assessment Parameters: Includes infrastructure, teaching, governance, research & student satisfaction.
Self-Study Report: Institutions submit a self-assessment report.
Peer Team Visit: NAAC sends a team of experts (selected via a computerized system) to inspect and evaluate.
Grading Scale: Grading is on an 8-point scale from A++ (highest) to D (lowest).
Accreditation Duration: Institutions are accredited for 5 or 7 years based on their grade, after which they must reapply.
Importance: Institutions with higher grades are eligible for benefits like autonomy and UGC funds.

Issues with the NAAC Process

Alleged Malpractices: Past reports highlight potential manipulations, such as the selection of known members for inspection teams.
Limited Pool of Experts: A small number of assessors are used, and their selection process is not always random or sequential, raising concerns over fairness.
Data Integrity Challenges: Reports have suggested issues in online processes and the integrity of data.
Past Concerns: The former NAAC chairman resigned in 2023, citing concerns over vested interests and manipulation in the grading process.

Proposed Reforms and Changes

Binary System: The NAAC is transitioning to a binary accreditation system where institutions will be classified as ‘accredited’ or ‘not accredited’ instead of the existing grading system.
Institutional Levels: Proposed levels from 1 (basic accreditation) to 5 (Global Excellence in Research and Education).
Data Validation via Crowdsourcing: To reduce physical visits, the system will use stakeholder feedback (faculty, students, alumni) to validate submitted data.
Stakeholder Involvement: Proposed reforms emphasize greater involvement of various stakeholders to ensure transparency and objectivity.
Implementation: NAAC is rolling out these reforms with workshops and stakeholder consultations.

{GS3 – Agri – Crops} Pulse Mission: Key to Punjab’s Agri-Crisis

Context (IE): The Pulse Mission, announced in the 2025 Union Budget, allocates Rs 1,000 crore to enhance pulse production and tackle agricultural challenges in Punjab.

Decline in Pulse Cultivation in Punjab

Punjab’s pulse cultivation has dropped drastically: from 9.17 lakh hectares in the 1960s to just 23,000 hectares in 2023-24.
The state’s pulse yield (1,100 kg per hectare) is higher than the national average, but production remains insufficient to meet local demand of 6 lakh tonnes annually.

Pulse Mission

Mission aims to boost self-sufficiency in pulse production, addressing Punjab’s agricultural issues.
Focuses on three pulse types: Tur (arhar), urad (mash), and masoor.
Central agencies like NAFED and NCCF will procure pulses from registered farmers for next four years.

NAFED (National Agricultural Cooperative Marketing Federation of India): Supports agricultural markets, stabilizes prices, and facilitates MSP procurement. Plays a significant role in export promotion and agricultural education.
NCCF (National Cooperative Consumers Federation): Ensures equitable access to essential goods, improves consumer welfare, and connects producers with buyers directly, ensuring fair pay for suppliers.

Push for Agricultural Diversification

Punjab has been heavily dependent on wheat and paddy, causing groundwater depletion, soil degradation, and environmental issues.
Pulses require less water & can be grown in both Kharif & Rabi, making them ideal for diversification.
The assured procurement system will incentivize farmers to shift land from water-intensive crops like paddy and wheat to pulses.

Addressing MSP Demand

Minimum Support Price (MSP) has been a key demand of Punjab’s farmers, particularly for crops other than wheat and paddy.
The Pulse Mission ensures MSP for pulses, addressing market uncertainties and preventing exploitation by middlemen.

Potential Benefits for Punjab

Reduces reliance on wheat and paddy, allowing for sustainable crop rotation systems.
Improves soil health and reduces environmental stress caused by monoculture farming practices.
Encourages diversification, which promotes sustainable farming practices.

Agricultural Diversification: Importance and Impact

Helps farmers reduce dependency on one crop, increasing income stability & reducing financial risks.
Crop rotation improves soil health, pest control, & reduces need for synthetic fertilizers & pesticides.
Diversified agriculture enhances resilience to climate change, reduces environmental damage, and supports biodiversity.

{GS3 – Envi – Conservation} Supreme Court Directive on Sacred Groves

Context (TH): Supreme Court has directed Rajasthan’s Forest Department to map and classify sacred groves as ‘forests’ and ‘community reserves’ under the Wildlife Protection Act (WPA), 1972.

Supreme Court’s Directive on Sacred Groves

Mapping and Classification: Rajasthan’s Forest Department ordered to map sacred groves using satellite and ground surveys based on their cultural and ecological importance.
Legal Reclassification: Sacred groves will be classified as ‘forests’ and notified as ‘community reserves’ under WPA, 1972.
Effect on Control: This shifts control from community governance to state-managed conservation, affecting traditional conservation practices.

Definition of ‘Forest Land’ in T.N. Godavarman Case

Broad Definition: Supreme Court’s interpretation of ‘forest land’ includes all areas recorded as forest in government records, irrespective of ownership.
Expert Committees: State govts directed to identify lands fitting this broader definition of ‘forest land.’

Implications of the Supreme Court Order

Conflict with the Forest Rights Act (FRA), 2006: The order potentially undermines community control, as FRA grants local communities rights over forest lands.
Impact on Cultural Practices: Traditional conservation practices and cultural beliefs associated with sacred groves may be disrupted.
Livelihood and Religious Impact: Communities relying on sacred groves for religious, medicinal, and cultural purposes may face restrictions.

Significance of Sacred Groves and Community Conservation Practices

Ecological Role: Sacred groves protect watersheds, prevent erosion & support biodiversity (eg- Orans in Rajasthan).
Cultural and Religious Importance: Groves are protected through taboos and rituals, such as in Sarpa Kavu (Kerala) and Devara Kadu (Karnataka).
Biodiversity Hotspots: Groves serve as habitats for rare plants and wildlife, like the Law Kyntang groves in Meghalaya.

Way Forward

Legal Harmonization: Align FRA and WPA to ensure community autonomy over sacred groves while protecting biodiversity.
Strengthen Community Governance: Empower local communities to manage sacred groves with integrated conservation approaches.

{GS3 – IE – Banking} Easing Banking Regulations in India

Context (IE): Reforming banking regulations is crucial to ensure sustainable credit growth, efficient capital allocation and financial stability in India’s journey toward a $7 trillion economy.

Present Status Warranting Regulatory Reforms

Economic Growth Projection: India’s GDP is expected to grow from $3.7 trillion (2023-24) to $7 trillion (2030-31), requiring robust financial support.
Declining Private Investments: Investment to operating cash flow for listed firms dropped from 114% (2008-09) to 56% (2023-24), indicating low confidence in future demand.
MSME Credit Gap: Large corporates access surplus funds, but MSMEs face challenges in securing credit.
Household Savings Shift: Bank deposits receive 40% or less of household savings (down from 50%) due to higher returns in mutual funds and pension schemes.
A $7 trillion economy will need an investment-to-GDP ratio of 34%, amounting to $2.5 trillion.

Challenges in Banking Regulations

High Preemptions on Deposits: Nearly 30% of bank deposits are locked due to statutory requirements.
- Statutory Liquidity Ratio (SLR): Banks hold ~26% in SLR securities (regulatory requirement: 18%).
- Cash Reserve Ratio (CRR): 4% of deposits remain with RBI, earning no interest.
- Liquidity Coverage Ratio (LCR): Daily compliance increases the need for government securities.
Dual Liquidity Mandates: Most global economies follow LCR alone, while India mandates both LCR and SLR, reducing banks’ lending capacity.
Limited Government Bond Market Liquidity: Despite inclusion in global indices, India’s share is 3% compared to Indonesia’s 14.5%.
Low Credit Growth: Credit growth lags behind nominal GDP growth, affecting financial sector expansion.

Key Reforms Proposed

Reducing Regulatory Preemptions: Reviewing the need for both LCR and SLR to free up bank liquidity.
Revising Priority Sector Lending (PSL): Current 60% PSL requirement (including “priority on priority”) needs alignment with GDP composition and evolving financial needs.
Encouraging Cash-Flow-Based Lending: Moving towards risk-based pricing and AI-driven credit supervision instead of rigid risk-weighting norms.
Enhancing Market Liquidity: Lowering preemptions for government securities to improve secondary and derivatives market depth.
Promoting Digital Banking Growth: Rationalizing LCR guidelines for digital deposits to prevent excessive liquidity lock-in.
Technology Investments & Cost Recovery: Reviewing UPI transaction costs, network fees, and other banking charges for sustainable financial services.
Strengthening the Bond Market: Regulatory nudges (IRDAI, PFRDA, SEBI) for institutional investors to enhance market participation.
Rationalizing Banking Regulations: Aligning Indian banking norms with global best practices for efficient financial intermediation.
Balancing Risk and Growth: Allowing banks to price credit based on risk while ensuring adequate liquidity for economic expansion.
Leveraging Technology for Credit Expansion: AI-driven monitoring and digital lending frameworks to enhance financial inclusion.
Developing Bond and Derivatives Markets: Encouraging diversified funding sources to reduce excessive dependence on banks.

{Prelims – PIN World – Asia} Legal Personhood for Mount Taranaki

Context (BBC): New Zealand’s Mount Taranaki has been granted legal personhood, recognizing it as a living entity with rights, responsibilities, and powers, in a landmark agreement with Maori tribes.

Geography and Location

Mount Taranaki (Taranaki Maunga), also known as Mount Egmont, is located on the west coast of New Zealand’s North Island.
It is part of the Taranaki region, surrounded by lush forests and farmland, and is located within the Egmont National Park.
It is a dormant stratovolcano, with a conical shape often compared to Japan’s Mount Fuji.
Geologically, Taranaki Maunga is a relatively young mountain, formed by volcanic activity, and remains an active feature in the region’s seismic activity.

Maori Connection and Cultural Significance

Taranaki Maunga holds immense cultural and spiritual significance for the Maori people, particularly for the eight iwi (tribes) of the Taranaki region.
The mountain is viewed as an ancestor, or ‘tupuna,’ embodying spiritual and familial ties for the Maori, symbolizing their connection to the land and history.
It was traditionally considered a living being, with the Maori worldview emphasizing respect for natural features as integral to their identity.

Legal Precedents

Mount Taranaki follows in the footsteps of the Urewera native forest (2014) and the Whanganui River (2017), which were also granted legal personhood in New Zealand.

Legal Entity Status in India

Definition of Legal Entity: A legal entity acts as a person in legal terms, represented through designated individuals, and is capable of holding rights and responsibilities.
Madras High Court granted ‘Mother Nature’ the status of a legal entity, recognizing it as a living being with rights, duties, and liabilities like a person.
Rights for Protection: akin to fundamental and constitutional rights, ensuring its survival, safety, and well-being.
Parens Patriae Jurisdiction: The court invoked this principle, empowering the state to act on behalf of nature, as a guardian, to protect its interests. The central and state governments were directed to take all possible actions to protect and preserve such legal entities.
Prior rulings have granted legal personhood to animals in Haryana (2018), Ganga and Yamuna rivers (2017), and Sukhna Lake (2020).

{Prelims – Sci – Bio} Brucellosis: Bacterial Infection Leading to Death in Kerala

Context (TH): An 8-year-old girl in Kerala recently died after prolonged treatment for brucellosis, highlighting the risks of this zoonotic disease.

What is Brucellosis?

Cause: Bacterial infection caused by Brucella species.
Affected Animals: Cattle, swine, goats, sheep, and dogs.
Transmission to Humans: Occurs via direct contact with infected animals, consumption of unpasteurised milk or dairy products, and inhalation of airborne agents.
Human-to-Human Transmission: Rare.
Common Symptoms: Fever, weakness, weight loss, and general discomfort.
Incubation Period: Ranges from 1 week to 2 months, usually presenting in 2-4 weeks.
Diagnosis: Often difficult as symptoms can be mild, leading to misdiagnosis or delayed treatment.
Treatment: Combination of doxycycline and streptomycin.
Affects all ages particularly those handling livestock: Farmers, butchers, veterinarians, laboratory personnel, and others in direct contact with animal blood, placenta, or bodily fluids.
Global Impact: Endemic in regions with extensive livestock farming.

Prevention

Vaccination: Livestock vaccination against Brucella.
Milk Pasteurisation: Crucial for preventing human infection.
Awareness Campaigns: Educating the public about avoiding unpasteurised milk and ensuring safe handling of animal products.