Current Affairs – February 12, 2025

{GS2 – IR – India-UK} UK:India Young Professionals Scheme 2025

• Context (IE): Ballot for UK:India Young Professionals Scheme (YPS) 2025 which offers 3,000 Indian nationals the opportunity to live, study, travel & work in UK for upto two years will open in Feb 2025.

UK:India YPS

• Launched in February 2023, it is a part of Migration and Mobility Agreement (2021).
• Eligibility Age: 18 to 30 years.
• Annual Cap: 3,000 young professionals per country (India and UK).
• Qualification Requirement: A degree equivalent to a UK bachelor’s level or higher.
• Financial Requirement: Proof of £2,530 in savings for self-support in the UK.
• Key Feature: Does not require an employer certificate or pre-approved job offer.
• Application Process: Randomly selected candidates required to apply within 90 days.

How YPS Differs from Other UK Work Visas

• Skilled Worker Visa: Requires a certificate of sponsorship, an approved employer, and a minimum salary threshold.
• Health and Care Worker Visa: Limited to medical professionals working with NHS or adult social care.
• YPS Advantage: No employer sponsorship needed; allows candidates to seek jobs or be self-employed.
• YPS Limitations: Not extendable beyond 2 years; No dependent children allowed.

{GS2 – Polity – IC} Illustrations in the Indian Constitution

• Context (IE): Parliament debated the missing 22 hand-painted illustrations from some Constitution copies, originally depicting India’s history and culture.

Origin and Artists

• Calligraphy by Prem Behari Narain Raizada in both Hindi (Devanagari) and English (Roman script).
• Illustrations designed by Nandalal Bose and his team at Santiniketan’s Kala Bhavana.
• Artists used indigenous techniques like gold-leaf application and stone colors.
• Influences from Ajanta cave paintings and Bagh murals in the borders and illustrations.
• Beohar Rammanohar Sinha designed the intricate patterns on the Preamble page.
• Dinanath Bhargava sketched the National Emblem (Lion Capital of Ashoka).

Artistic Features

• Hashia-style calligraphy inspired by Mughal and Sultanate inscriptions.
• Two types of borders: Simple gold-speckled for all pages and ornate inner gold ornamentation for schedules.
• Chronological narrative from the Indus Valley Civilization to India’s freedom struggle.

Illustrations in Different Parts of the Constitution

Key Figures in the Illustrations

• Freedom Struggle: Mahatma Gandhi (Dandi March, Noakhali visit), Subhas Chandra Bose (Indian National Army (NA) campaign).
• Historical Monarchs: Ashoka, Akbar, Shivaji, Guru Gobind Singh, Rani Lakshmibai, Tipu Sultan.
• Religious Figures: Buddha, Mahavir, Krishna, Arjun.

Significance of the Illustrations

• Symbolic representation of India’s cultural heritage, history, and philosophy.
• No direct correlation with the text of the Constitution but a visual narrative of India’s evolution.
• Reflects India’s diversity, traditions, and nationalist ethos through art.

{GS2 – Polity – IC} President’s Rule in Manipur

• Context (IE): Recent large-scale violence in Manipur has led to discussions about imposing President’s Rule in the state.

President’s Rule

Constitutional Provision

• Article 356: Allows the President to assume direct control of a state’s administration if its government fails to function as per constitutional provisions.
• Also Known As: State Emergency or Constitutional Emergency.
• Process Initiated by the Governor’s report or other credible sources; requires Presidential Proclamation.
• Duration: Initially for two months; requires parliamentary approval for an extension of up to six months, with further extensions possible up to three years under specific conditions.
• Conditions for Extension Beyond One Year: National Emergency in effect or Election Commission certifies difficulty in holding state elections.

Supreme Court’s Stand on President’s Rule

• S.R. Bommai Case (1994): Laid down guidelines to prevent misuse of Article 356.
• Judicial Review: Courts can examine whether the proclamation was based on valid grounds or arbitrary misuse of power.
• Judicial Interpretation: Justice B.P. Jeevan Reddy emphasized that states are not mere extensions of the Centre and need protection from undue central intervention.

State Autonomy Protection

• President’s decision cannot be purely subjective.
• Parliament must approve President’s Rule within two months.
• If not approved, the dismissed government is automatically revived.

Historical Context and Need for President’s Rule

• Origin: Derived from Section 93 of the Government of India Act, 1935, which empowered the Governor-General and Governors to handle constitutional breakdowns.
• Necessity Stressed by: B.R. Ambedkar, Alladi Krishnaswami Ayyar, K. Santhanam & Thakur Das Bhargava.

Key Objectives

• Protect unity and integrity of the nation in a diverse society.
• Address governance breakdown and uphold law and order.
• Strengthen federalism while ensuring cooperation between Centre and States.
• Protect individual liberty when state machinery collapses.
• Ensure constitutional compliance by state governments.
• Secure states from external aggression and internal disturbances under Article 355.

Instances of President’s Rule in India

• Total Impositions: 134 times across 29 states and UTs since 1950.
• Most Frequent Occurrences: Uttar Pradesh and Manipur (10 times each).
• Latest Case: Puducherry (2021) after the Congress government lost a confidence vote.

Longest Durations

• Jammu & Kashmir: Over 12 years (4,668 days) due to militancy and instability.
• Punjab: Over 10 years (3,878 days) due to separatist activities.
• Puducherry: Over 7 years (2,739 days) due to political instability.

Factors Warranting a Need for President’s Rule in Manipur

• Prolonged Violence: No other Indian state has witnessed such continuous violence.
• Civilian Involvement: Common citizens are both victims and perpetrators, forced into self-defense.
• Police Division: State police force is ethnically divided, escalating hostilities between the Meitei and Kuki communities.
• Breakdown of Constitutional Machinery: State government has failed to maintain law and order.
• Deprivation of Fundamental Rights: Over 3 million people face threats to life, liberty, and dignity.
• Judicial Ineffectiveness: Court orders have failed to control violence.
• Internal Disturbance: Over 250 deaths, 1 lakh displaced, and widespread destruction of homes, temples, and churches.
• Previous Intervention: Article 355 was imposed in 2023 to allow Union government intervention against internal threats.

{GS3 – Envi – CC} India’s Role in South-South Climate Cooperation

• Context (TH): India’s potential role in fostering climate cooperation between developing nations under Article 6.2 of the Paris Agreement to enable global climate solutions.

Article 6 of the Paris Agreement

• Carbon Markets: Allows trading of carbon credits to meet emissions reduction targets, enabling India to generate revenue from surplus carbon credits.
• Cooperative Approaches: Facilitates joint projects between countries to reduce emissions and support sustainable development.
• Non-Market Approaches: Encourages capacity-building, knowledge sharing, and financial support for climate resilience.
• Flexibility: Helps India achieve its Nationally Determined Contributions (NDCs) efficiently while balancing economic growth and sustainability.

India’s Position and Climate Policies

• Third-largest emitter of greenhouse gases (GHG) in absolute terms, requiring a balance between development and climate commitments.
• National Targets: Reduce emissions intensity by 45% by 2030; calls for developed nations to mobilize $1 trillion annually in climate finance.
• Carbon Credit Trading Scheme (CCTS) 2023: Strengthens carbon credit tracking, verification, and integration into national policy.
• Prior Experience: India’s participation in the Clean Development Mechanism (CDM), Voluntary Carbon Market (VCM), Energy Saving Certificates (ESCerts), and Renewable Energy Certificates (REC) lays a strong foundation for leveraging Article 6.2.

Opportunities for India under Article 6.2

• Unlocking Climate Finance: Internationally Transferrable Mitigation Outcomes (ITMOs) transactions can attract investments for green projects; India’s renewable sector drew $10 billion in FDI in 2022.
• Technology and Knowledge Transfer: Collaborations in renewable energy (solar, green hydrogen), energy storage, and carbon capture with Japan, EU, and South Korea.
• Enhancing South-South Cooperation: Partnering with African nations to develop climate-resilient infrastructure, RE deployment, and agriculture adaptation.
• Sustainable Development Goals (SDGs): ITMO transfers can generate green jobs, reduce pollution, and enhance energy security.
• Carbon Trading in Developing Regions: India can sell carbon credits to nations needing help meeting NDCs, leveraging expertise in emission reduction projects.
• Joint Ventures for Clean Energy: Co-developing renewable energy projects with other developing nations to scale climate solutions.
• Institutional Strengthening: India can assist partner nations in setting up MRV (Monitoring, Reporting, Verification) systems for better carbon credit tracking.

Challenges in Utilizing ITMOs and Climate Finance

• Opportunity Costs: Selling ITMOs may limit India’s ability to use these reductions for its own climate goals.
• Risk of Offloading Responsibilities: Developed countries might buy ITMOs instead of undertaking domestic emissions reductions.
• Transparency Issues: Weak governance in ITMO trading may lead to inequities and inefficiencies.
• Environmental Integrity: Risks of low-quality credits or double counting may undermine global climate commitments.
• Institutional Coordination: Alignment of domestic policies with international climate finance mechanisms remains a challenge.

India-Africa Climate Partnership: A Key Focus

• Africa’s Climate Vulnerabilities: Agriculture and water resources highly impacted by climate change.
• Renewable Energy (RE) Potential: Vast solar and wind energy resources in African nations align with India’s RE expertise.
• Economic Cooperation: Under Modi’s 10 Principles for India-Africa engagement, India emphasizes local capacity building and sustainability projects.
• Joint Crediting Mechanism (JCM): India can adopt Japan’s model, ensuring fair credit allocation and transparency in ITMO transactions.

{GS3 – Envi – CC} Rising Temperatures in Australia

Context (IE): In January 2025, over 30,000 fish died off Western Australia’s coast due to climate-change-exacerbated marine heatwaves, while 2024 became Australia’s second warmest year since 1901.

Rising Temperatures in Australia

• Since 1901, Australia’s average temperature has risen by 1.51°C.
• 2019 was the hottest year on record; eight of the warmest years occurred between 2013 and 2024.
• Number of hot days is increasing, while cold days and nights have decreased.
• Land areas are warming 40% faster than surrounding oceans.

Changes in Rainfall Patterns

• Influenced by the Indian Ocean Dipole (IOD) and El Niño-Southern Oscillation (ENSO).
• Declining rainfall between April-October, impacting agriculture and groundwater recharge.
• Since 1970, rainfall in the southwest has dropped by 20%; between May-July, a 24% decline since 1994.
• Northern Australia has seen increased rainfall, leading to more extreme flooding.
• 10% rise in short, intense rainfall spells; thunderstorms driving heavy downpours more frequently since the 1970s.

Warming Oceans and Marine Heatwaves (MHWs)

• Since 1900, Australia’s sea surface temperature (SST) has risen by 1.08°C.
• 2022 recorded the highest SST spike, linked to a negative IOD phase.
• Marine heatwaves have increased in frequency and intensity, sometimes lasting for months.
• MHWs have caused massive marine life mortality; January 2025 saw 30,000 fish deaths.
• The Great Barrier Reef faced its 7th mass coral bleaching event in 2024.

Impact of Marine Heatwaves

• Fish Kills: Extreme water temperatures cause mass fish deaths, eg- Western Australia (2010-2011, 2025).
• Kelp Forest Loss: Rising temperatures lead to kelp die-offs, disrupting marine ecosystems.
• Coral Bleaching: Corals expel symbiotic algae due to heat stress, weakening them and reducing reproduction.
• Economic Damage: Negative effects on fishing and tourism industries reliant on marine biodiversity.

Future Climate Projections

• Rising temperatures will intensify heatwaves and extreme weather events.
• Droughts will become more severe due to declining April-October rainfall.
• Short but heavy rainfall events will increase, exacerbating flooding risks.
• Sea level rise and ocean acidification will accelerate.
• Increased frequency of MHWs will threaten marine habitats like kelp forests and coral reefs.
• Fewer but more intense tropical cyclones expected.
• Snow cover in alpine regions will continue to shrink.

Need for Climate Action

• Reducing global greenhouse gas emissions is critical to slow ocean warming.
• Limiting global temperature rise to 1.5°C can mitigate MHW intensity but won’t eliminate risks.
• If warming exceeds 2°C, marine ecosystems will face severe biodiversity loss and economic disruptions.
• Strengthening adaptation and resilience measures for marine and terrestrial ecosystems is necessary.

{GS3 – IE – Development} Gross Domestic Knowledge Product (GDKP)

• Context (IE): MoSPI is reviving the 2021 GDKP concept to supplement GDP by measuring the economic and social impact of knowledge-driven sectors.

Government’s Approach to GDKP Measurement

• Session by MoSPI held recently to develop a framework by forming a Technical Committee to measure the knowledge economy beyond traditional economic indicators.
• Satellite Account Approach: Considering a similar framework used for tourism, culture, and ocean economy to measure knowledge contributions.

{GS3 – IE – Industry} Impact of Rupee Depreciation on Indian Corporates

• Context (IE): The Indian rupee has depreciated by over 22.36% in five years, increasing the cost burden on companies relying on foreign loans and imports.

Understanding Rupee Depreciation

• A depreciating rupee means a higher exchange rate, requiring more rupees to buy one US dollar.
• Exchange rates in a free-market economy depend on supply and demand.
• RBI intervenes in the forex market to prevent excessive volatility but does not maintain a fixed rate.

Role of RBI in Managing Rupee Volatility

• Forex Market Intervention: Buying or selling dollars to stabilize fluctuations.
• Monetary Policy Adjustments: Raising interest rates to attract foreign investments.
• Forex Reserve Utilization: Using reserves to curb volatility; reserves fell by $51.52 billion in three months due to intervention.

Key Causes of Rupee Depreciation

• Rising US interest rates attract capital away from India, weakening the rupee.
• Trade wars and global economic slowdowns reduce foreign capital inflow.
• India’s high demand for dollars due to imports increases pressure on the rupee.
• RBI’s policy of allowing gradual depreciation to maintain competitiveness.

Impact on Foreign Borrowings

• Rupee depreciation increases the rupee equivalent of debt repayment for companies with external commercial borrowings (ECBs).
• A 5% depreciation directly raises debt servicing costs by 5%.
• Companies with unhedged foreign loans face severe financial strain. Eg- A firm with $500 million in ECBs faces an additional Rs 2,500 crore burden if the rupee weakens by 5%.

Sectoral Impact

• Export-Oriented Sectors (IT, Pharmaceuticals, Textiles, Automobiles): Benefit from a weaker rupee as their goods become more competitive globally.
• Import-Dependent Sectors (Oil & Gas, Electronics, Pharmaceuticals): Face higher costs as imports become expensive, squeezing profit margins.
• Corporate Sector: Rising costs force firms to either absorb losses, increase prices, or shift to domestic financing.

Measures Taken by Companies

• Increasing hedge ratios despite high hedging costs to mitigate forex losses.
• Exploring hedging instruments like options to manage volatility.
• Cost-cutting and operational efficiencies to absorb rising costs.
• Importers adjusting pricing strategies to pass costs to consumers where feasible.

Future Outlook

• Continued rupee volatility expected due to global economic uncertainties.
• Corporates likely to increase forex risk management strategies.
• Sectors with pricing power may pass cost increases to consumers, leading to inflationary pressures.