Current Affairs – February 14, 2025

{GS2 – Governance – Laws} New Income-Tax Bill

• Context (IE): The new Income-Tax Bill, 2025, introduces key simplifications and adjustments to streamline the tax system, with a new ‘tax year’ concept and reduced complexity.
• Previous Attempts: The govt has previously tried simplifying the Income-Tax Act, including a 2018 task force report and a Direct Taxes Code (DTC) proposal that was eventually dropped after multiple revisions.

New Concept of ‘Tax Year’

• The Bill defines the ‘tax year’ as the 12-month period beginning April 1, marking a shift from the current ‘assessment year’ system.
• For businesses or newly set-up professions, the tax year starts from their establishment date and ends on the financial year’s close.
• This change may pave the way for more flexible and fluid income tax reporting in future.

Bill Overview

• Reduction of Provisos and Explanations: Unnecessary cross-references and explanations from previous amendments have been eliminated, streamlining the content for better clarity.
• Retention of Old Tax Regime: The Bill retains the old tax regime alongside the new one, ensuring continuity in the tax structure.
• Clear Structure: Key provisions like TDS, presumptive taxation rates, and assessment time limits are now presented in an easily understandable tabular format.
• Streamlined Deductions: Deductions like standard deduction, gratuity, and leave encashment have been consolidated in one place for easier access.
• Dispute Resolution Panel (DRP): The section clarifies the process for DRP decisions, ensuring transparency and clear reasons for determinations.
• Increased Clauses and Schedules: The Bill includes 536 clauses (compared to 298 sections in the current law) and 16 schedules (up from 14).
• Removal of Redundant Sections: Outdated sections and references from past amendments have been removed, with clauses from other laws integrated for simplicity.

Expanded Definition of Income

• Virtual Assets as Capital Assets: Virtual digital assets are now included in the definition of property and counted as capital assets along with immovable property, shares, jewelry, and art.
• Capital Gains Exemptions Removed: Section 54E, which offered capital gains exemptions for assets transferred before April 1992, has been removed. Outdated exemptions have also been streamlined.
• Revenue Recognition & Inventory Valuation: New sections address revenue recognition for service contracts and inventory valuation at lower cost or net realizable value.

{GS2 – IR – Issues} Impact of U.S. Migration Policies on Illegal Migration

• Context (TH): Recent deportations of illegal Indian immigrants, particularly from Punjab, Gujarat & Haryana, highlight the growing issue of illegal migration to the US with a notable increase in Indian nationals.

Limitations of Legal Migration System

• Legal Migration Pathways: Legal routes, like H1-B visa program, are critical for skilled workers from countries like India, but also restricts mobility due to its limited duration and conditions.
• Green Card System: The 7% per-country cap for green cards creates delays, even for those already vetted under the H1-B system face a significant hurdle for permanent residency.

Forms of Illegal Migration

• Asylum Claims: Many illegal migrants use asylum claims to seek legal residency in the U.S.
• Fraudulent Marriages: Instances of migrants using fake marriages to gain permanent residency are widespread.
• Irregular Routes: Migrants often travel through unsafe routes, involving countries like Nicaragua and Mexico, to enter the U.S. illegally.
• Youth Participation: Illegal migration is not limited to the poor; even middle-class youth take such risks due to misinformation.

Consequences

Cultural and Economic Concerns

• Polarization in US: Debate over immigration continues to shape U.S. political discourse, with divisions between those viewing migrants as a threat & those seeing them as contributors to the nation’s fabric.
• Economic Impact: Migrants, particularly from countries like India, play a significant role in the U.S. tech and knowledge economy.
• Rise of Domestic Extremism: The rise of white supremacist terrorism and associated violence has had a direct impact on the migration discourse, influencing policies and the treatment of migrants.

Humanitarian and Social Implications

• Exploitation and Risks: Migrants often face exploitation, violence & death while crossing illegal routes.
• Cultural Identity and Resistance: The demographic shift in the U.S. sparks anxiety about cultural identity, particularly among white populations, creating a divide regarding migration.
• Social Media Influence: Misinformation on social media about U.S. migration opportunities often fuels false hopes and illegal migration.
• Racial Discrimination: The rise in white nationalism and racial bias has created a climate of insecurity, particularly for skilled migrants from non-European countries.

Responses to the Issue

• U.S. Government Response: U.S. politics, especially under Donald Trump, has focused heavily on cracking down on illegal migration, reflecting a more stringent approach.
• India’s Approach: India should enhance efforts to educate its citizens about the realities of U.S. immigration policies and push for structured, legal pathways.
• Strategic Cooperation: Both countries need to create incentives for legal migration, with the U.S. aligning its immigration needs with economic demands while India tackles the root causes of illegal migration.

{GS2 – IR – Issues} Trump’s Shift in Global Power Dynamics

• Context (IE): Trump’s outreach to Putin aims to reshape global power dynamics, potentially as significant as the 1945 Yalta Summit.

Yalta Conference 1945

• Date & Location: Held from February 4 to 11, 1945, at Livadia Palace, Yalta, Crimea, during World War II.
• Attendees: Leaders of the Allied powers – Franklin D. Roosevelt (U.S.), Winston Churchill (U.K.), and Joseph Stalin (Soviet Union).
• Main Objectives: To discuss post-war reorganization, the occupation of Germany, and the establishment of the United Nations.
• Division of Germany: Agreed to divide Germany into four occupation zones controlled by the U.S., Soviet Union, U.K., and France, with Berlin also split into four sectors.
• Formation of the United Nations: Paved the way for the creation of the UN, with discussions on its structure and principles.
• Impact on Post-War World Order: Shaped international cooperation, the Cold War, and the reconstruction of Europe.

Trump-Putin Talks and Global Impact

• Trump’s discussions with Putin focus on ending the Ukraine war and restoring US-Russia cooperation.
• This shift mirrors the Yalta Summit (1945) in reshaping global power structures.
• Trump initiated ceasefire talks and plans a face-to-face meeting with Putin, highlighting peace urgency.
• A successful resolution could change the international framework, acknowledging Russia’s influence.

Europe’s Role and Challenges

• Unlike Yalta, European powers are excluded from Trump-Putin talks.
• Trump rejects Ukraine’s NATO membership and urges Europe to take responsibility for its defense.
• Europe may need to align with US policy on security, altering NATO relations.

Impact on Asia and India

• Trump’s engagement with Putin may affect Russia-China relations and US-China ties, particularly over Taiwan.
• India is positioned to play a key role in global diplomacy as the balance of power shifts.

India-US Economic Dialogue

• India seeks to reshape the global economic system, beyond trade and tariffs, to reduce reliance on China and enhance trade ties with the US.
• Both countries aim to address trade deficits with China and promote balanced trade.

{GS2 – Polity – IC – Elections} Convicted Persons and Their Right to Contest Elections

• Context (TH): Supreme Court is reviewing petitions calling for a lifetime ban on convicted individuals from contesting elections.

Legal Provisions

• Section 8(3) of the RP Act, 1951: Disqualifies convicted persons with sentences over two years for six years post-release.
• Section 8(1): Automatically disqualifies individuals convicted under laws for heinous crimes, plus six years after release.
• Section 8(4): Previously allowed convicted legislators to stay in office if they appealed, but was struck down in Lily Thomas (2013).
• Section 11: Grants EC power to reduce or remove disqualification. In 2019, this power was used to allow Prem Singh Tamang to contest after a reduced disqualification period.

SC Judgments Favoring Decriminalisation of Politics

• ADR Case (2002): Mandated disclosure of criminal records for all election candidates.
• CEC vs Jan Chaukidar (2013): Ruled jailed individuals cannot be ‘electors’ and thus cannot contest. This was later overturned by Parliament.
• Lily Thomas Case (2013): Struck down Section 8(4), mandating immediate disqualification of convicted sitting legislators.

Arguments For Convicted Individuals Contesting Elections

• Rehabilitation: A convict who has served their sentence should not be permanently barred. Nelson Mandela, after serving 27 years, became President.
• Political Misuse: Legal provisions may be misused to block strong candidates, as seen with Arvind Kejriwal.
• Disproportionate Punishment: Not all convictions involve moral turpitude. A blanket ban is unjust in cases like civil disobedience.

Arguments Against Convicted Persons Contesting Elections

• Clean Politics: Allowing convicts to contest erodes trust in governance, as seen with Mohammad Shahabuddin’s repeated elections despite criminal charges.
• Government Job Parity: The inconsistency of allowing convicted individuals to hold office while barring them from other government roles is problematic.
• Threat to Democracy: Convicted politicians can misuse power to influence investigations and intimidate witnesses, weakening democratic institutions.

Arguments for Lifetime Ban on Convicted Individuals

• Integrity & Public Trust: Lawmakers must adhere to ethical standards. Lily Thomas reinforced this need.
• Government Job Parity: Convicts cannot hold government jobs, yet they can contest elections after six years, raising integrity concerns.
• Curbing Criminalisation: In 2024, 46% of MPs had criminal cases, with 31% facing serious charges. This shows the extent of criminalisation in politics.
• Judicial & Expert Support: The Law Commission and EC support stricter norms, such as barring candidates once serious charges are framed.
• Strengthening Democracy: A lifetime ban on criminals would reduce misuse of political power and restore public trust.

Way Forward

• Stricter Disqualification Norms: Impose a lifetime ban for heinous crime convictions, with judicial review for politically motivated cases.
• Electoral & Judicial Reforms: Fast-track trials of politicians facing criminal charges and empower the EC to enforce stricter disclosure and scrutiny.

{GS2 – Polity – IC} Government Invites Proposals for Setting Up Nari Adalats

• Context (IE): Ministry of Women and Child Development has extended an invitation to states and UTs to set up Nari Adalats.

About Nari Adalat (Women’s Court)

• Initially launched in 2023 on a pilot basis in 50 gram panchayats each in Assam and Jammu & Kashmir. The program is now being expanded to other states and UTs.
• These Adalats will be exclusively dedicated to women and girls, as a platform for women to voice their problems and fight for their rights.
• The Ministry of Women and Child Development would run the scheme under the Sambal sub-scheme of Mission Shakti.

Functions

• It will be set up at the village level as an alternative dispute resolution forum for domestic violence, dowry, child custody, property rights and to counter the patriarchal system.
• The scheme focuses on negotiation, mediation, and reconciliation to settle minor disputes.
• The court will address individual cases and raise awareness of government schemes and women’s legal rights and entitlements.
• It will not hold any legal status. It will function as a pressure group.

Composition

• Each Nari Adalat village will have 7 to 11 members called ‘Nyaya Sakhis’:
  • Half of which would be the elected members of the gram panchayat
  • Half will include teachers, doctors and social workers – who would be nominated by the villagers.

Need for Nari Adalats

• The traditional forms of justice-dispensing mechanisms have patriarchal biases.
• If women ever dared to raise their voices against the atrocities inflicted on them, they would face criticism and humiliation (victim-shaming).
• Personal accounts of the victims who sought justice through Nari Adalat will encourage others to voice their problems and fight for their rights.

Mission Shakti

• Mission Shakti is a scheme in mission mode aimed at strengthening interventions for women safety, security & empowerment.
• It seeks to realise the Government s commitment for women-led development by addressing issues affecting women on a life-cycle continuum basis and by making them equal partners in nation-building through convergence and citizen-ownership.
• Mission Shakti has two sub-schemes:
  • ‘Sambal’
  • ‘Samarthya’

Sambal

• Sambal is a sub-scheme of Mission Shakti which includes One Stop Centres (OSC), Women Helplines, Beti Bachao Beti Padhao (BBBP) and Nari Adalat, thus focuses on women’s safety & security.

Samarthya

• As another component of Mission Shakti, it focuses on women’s empowerment, encompassing initiatives like PM Matru Vandana Yojana (PMMVY), Palna, Shakti Sadan & Hub for Empowerment of Women.

{GS3 – IE – Development} Measuring GDP

• Context (IE): Inflation and Recession plays a key role in GDP measurement, influencing spending, production costs, and growth.

Economic Implications of Inflation and Global Recession

• Inflation Impact: Inflation influences GDP growth by affecting consumer behavior, investment decisions, and production costs.
• Consumer Spending: Domestic consumption (60.34%) forms a major part of India’s GDP, making the economy resilient to global recessions.
• Global Recession Sensitivity: Economies with high export dependency are more vulnerable to external shocks.

Three Approaches to Measuring GDP

Expenditure Approach

Adds the total expenditure on final goods and services. It includes:

• Personal Consumption Expenditure (C): Spending on goods and services by individuals.
• Investment Expenditure (I): Business investments, including residential, non-residential, and inventory investments.
• Government Expenditure (G): Spending by federal, state, and local governments, including defense.
• Net Exports (X-M): Exports minus imports, representing trade balance.

Income Approach

Measures total income earned from various sources, including:

• Wages and Salaries: Earnings from employment.
• Proprietors’ Income: Earnings from self-employment.
  • Rental Income: Income from property leasing.
  • Corporate Profits: Earnings from corporations.

• Net Interest: Interest earned minus paid interest.

• It also factors in indirect taxes, depreciation, and payments to the rest of the world (ROW).

Product Approach (Output or Value-added Method)

• Adds up the market value of all final goods and services, excluding intermediate goods.
• This method ensures consistency with the expenditure approach and income approach.

GDP Composition in India

• Services Sector: Largest contributor, accounting for 61.5% of GDP.
• Industrial Sector: Contributes 23%.
• Agricultural Sector: Accounts for 15.4%.

GDP Calculation: Factor Cost vs. Market Price

• Factor Cost Method: Excludes taxes but includes subsidies. It measures the cost of production.
• Market Price Method: Includes taxes but excludes subsidies, calculated based on total expenditure.

Sectoral Breakdown of GDP Calculation

• Factor Cost Method: Primarily used for sectors such as Agriculture, mining, manufacturing, and utilities & Services like trade, transport, and public administration.
• Expenditure Method: Includes domestic consumption, net investments, govt expenditure, and net trade.

Limitations of GDP

• Exclusion of Non-Market Transactions: GDP only measures market activities, missing informal or unpaid work.
• Living Standards: GDP doesn’t account for living conditions, with per capita income being a better measure.
• Externalities: It ignores environmental or social impacts of economic activities.
• Income Distribution: GDP doesn’t reflect income inequality or distribution of wealth.

GDP Growth and Economic Health

• Quarterly GDP Growth: A key indicator of economic growth but should be analyzed with welfare metrics.
• Comprehensive Growth Assessment: GDP should be complemented by indicators like per capita income and income distribution for a full understanding of economic development.

{GS3 – Infra – Initiatives} Sri Lanka Wind Power Project

• Context (IE): Adani Group withdrew from its proposed wind power project in Sri Lanka, citing changes in the review process and the project’s uncertain future.

Project Overview

• The wind project was set to have a 484-megawatt capacity, focusing on renewable energy in northern Sri Lanka (Mannar and Pooneryn).
• Adani Group initially planned to invest over $440 million in a 20-year agreement for this project.

Criticism of the Project

• Opaque Awarding Process: The Memorandum of Understanding (MoU) signed in 2022 raised concerns about transparency, with no public disclosure of the details initially.
• Political Allegations: The Ceylon Electricity Board (CEB) Chairman claimed that Indian PM pressured President Gotabaya Rajapaksa to award the project to Adani.
• Ecological Concerns: Local protests highlighted the environmental impact of the wind power project. CEB unions demanded a competitive bidding process for the project.
• Pricing Dispute: Petitioners argued that the agreed tariff of $0.0826 per kilowatt-hour was too high, claiming it would result in losses for Sri Lanka.

{GS3 – S&T – AI} India’s Role in AI Governance at AI Action Summit

• Context (PIB | IE): India’s participation in the AI Action Summit in Paris marks a significant step in shaping global AI governance, emphasizing equitable access and contextual AI solutions for the Global South.

India’s AI Strategy and Global Leadership

• Leadership in AI Policy: India actively participates in Bletchley Park, Seoul AI Summits and G20, advocating AI safety, risk mitigation, and multilateral cooperation.
• AI Safety & Ethical Frameworks: Launched India’s AI Safety Institute and National AI Strategy (NITI Aayog) to promote trustworthy AI development.
• Championing Equitable AI Access: Leads efforts in GPAI, ensuring AI infrastructure, digital inclusion, and accessibility for the Global South.
• AI Mission for Public Good: India’s focus on developing its own AI models suited to local needs and contexts, with an emphasis on applications in sectors like health, education, and agriculture.
• Strengthening AI Infrastructure: Investing in the IndiaAI Mission (₹10,000 crore) and the India Semiconductor Mission to boost domestic AI and chip innovation.
• India-France Collaboration: Joint innovation partnership for a sustainable, AI-driven future, with shared knowledge on clean energy and AI deployment.

Strategic Priorities for India at the Paris Summit

• Open-Source AI: Call for the adoption of open-source models like DeepSeek, contrasting the closed proprietary nature of Western AI models, like OpenAI and Google.
• Bias-Free Data: Emphasis on creating AI systems with unbiased, representative data, addressing the shortcomings of AI models that fail to capture India’s diverse cultural and linguistic landscape.
• AI Regulations that Cater to the concerns of cultural erosion and the dominance of Western-trained models.
• Sustainability in AI: Advocacy for cleaner energy sources to power AI, particularly nuclear energy, while promoting energy-efficient AI models to reduce resource demands.
• AI and Job Transformation: AI is seen as a job transformer rather than eliminator, emphasizing skilling and re-skilling to adapt, countering concerns highlighted in India’s Economic Survey.
• AI Safety Tools and Frameworks: Advocate for safety measures like watermarking for content verification and propose the creation of an AI-related harm repository to guide future policies.

As Prime Minister Narendra Modi aptly stated, “India’s techade is here, and AI will be the driving force of progress.” By fostering innovation, global partnerships, and ethical AI governance, India is poised to lead the next era of AI-driven transformation, ensuring that technology serves humanity responsibly and inclusively.

{GS3 – S&T – Space] Cosmic Neutrino Detected in Mediterranean Sea

• Context (IE): KM3NeT detected a record-breaking high-energy neutrino, marking a major breakthrough in studying extreme cosmic events.

About KM3NeT

• Cubic Kilometer Neutrino Telescope is a 2012 European research project in the Mediterranean Sea.

Source: Researchgate

• Purpose: Detects high-energy neutrinos to study cosmic sources and fundamental neutrino properties.
• Detection Method: Water Cherenkov detectors capture faint light emitted when neutrinos interact with water molecules.
• It is similar to the IceCube Neutrino Observatory, which can detect high-energy neutrinos from deep space but is located under the frozen ice in the Antarctic rather than in the water.

Key Components

• ARCA (Astroparticle Research with Cosmics in the Abyss): Located offshore Sicily, Italy, at 3,400m depth. Focuses on detecting high-energy cosmic neutrinos.
• ORCA (Oscillation Research with Cosmics in the Abyss): Located offshore Toulon, near Provence, France, at 2,475m depth. Studies neutrino oscillations and mass hierarchy.

Design and Infrastructure

• Optical Modules: Uses 6,210 optical modules to detect Cherenkov radiation, with plans to expand to 12,000 modules on 600 vertical strings.
• Connectivity: Linked to shore stations via electro-optical networks for power supply and data processing.

Current Status and Future Prospects

• Under Construction: The detectors are still being built, with ongoing upgrades to improve neutrino detection capabilities.
• Scientific Potential: Expected to provide insights into high-energy cosmic phenomena and violent astrophysical events.
• Future Contributions: Will advance neutrino astronomy and deepen understanding of cosmic origins, space, and time.

Neutrino Detection and Significance

• High-Energy Neutrino: The neutrino detected by the ARCA detector was measured at about 120 quadrillion electronvolts, 30 times more energetic than any previously detected neutrino.
• Source Identification: The researchers suggest that the neutrino might have originated from beyond the Milky Way, with potential sources identified as 12 supermassive black holes actively consuming surrounding matter.

Challenges in Nutrino and Energy Detection

• Uncharted Energy Levels: High-energy neutrinos exist in an unexplored energy region, surpassing known particles and challenging current detection methods.
• Cherenkov Radiation Dependency: Detection relies on the faint Cherenkov light produced when neutrinos interact with water or ice, requiring highly sensitive instruments.
• Large-Scale Observatories: Massive setups like KM3NeT, placed in deep water or ice, are essential to detect neutrinos due to their rare interactions.
• Detection Complexity: Identifying neutrinos among background noise demands advanced data processing and long-term observation strategies.

Neutrino Production in Astrophysical Events

• Low-Energy Neutrinos: These are produced by processes like nuclear fusion in stars.
• High-Energy Neutrinos: Generated during extreme astrophysical events like black hole accretion, gamma-ray bursts, or cosmic ray interactions with background radiation.
• Unsolved Mysteries: The study of neutrinos remains in its early stages, and understanding their role in the cosmos is crucial for deciphering some of the universe’s most energetic phenomena.

Neutrinos as Cosmic Messengers

• Unaffected by Magnetic Fields: Neutrinos are electrically neutral and travel undisturbed through space, making them reliable cosmic messengers.
• Minimal Interaction with Matter: They rarely interact with matter, allowing them to traverse vast cosmic distances without deflection or absorption.
• Tracing Cosmic Events: Their detection helps scientists trace extreme phenomena like black holes, gamma-ray bursts, and high-energy particle collisions.
• Unique Insight into the Universe: Neutrinos provide direct information about distant astrophysical sources, revealing details inaccessible through traditional electromagnetic observations.

{Prelims – Sci – Bio – Diseases} Diabetic Foot

• Context (TH): India has over 101 million people affected by diabetes, with diabetic foot posing a severe risk of infections, ulcers, and amputations if not properly managed.

About Diabetic Foot

• A condition caused by prolonged high blood glucose levels damaging foot nerves and blood vessels.
• Leads to diabetic neuropathy (nerve damage) and peripheral artery disease (poor blood circulation).
• Burden in India: Second-highest diabetes prevalence, 45,000+ amputations yearly, 90% never see a specialist, high treatment costs.
• Risk Factors: Poor blood sugar control, obesity, high blood pressure, high cholesterol, age above 40, smoking (2.3x higher risk).
• Symptoms: Skin discoloration, temperature changes, thickened nails, slow-healing ulcers, numbness, tingling, pain, cracked skin, hair loss.
• Complications: Foot ulcers, infections, gangrene (leading to amputations), high hospitalization costs, increased mortality risk.

Source: ToI

• Prevention: Daily foot checks, proper footwear, hygiene, regular medical check-ups, Blood Sugar Control, and avoiding barefoot walking.

Treatment

• Wound Care: Cleaning, debridement, and dressing of ulcers.
• Off-Loading: Reducing pressure using special footwear, crutches, or wheelchairs.
• Regular Assessment: Examine feet annually (or more frequently based on risk) for neuropathy, peripheral artery disease, and deformities.