Current Affairs – February 23-24, 2025

{GS1 – A&C – Art Forms} Jhumur Dance and Assam’s Tea Tribes

• Context (IE): PM will witness the world’s largest Jhumur dance performance at Jhumoir Binandini 2025 in Guwahati, celebrating 200 years of Assam’s tea industry with 8,600 dancers and 60 diplomats.

Tea Tribes of Assam

• A multi-ethnic community of tea garden workers and their descendants.
• Migrated from Jharkhand, Odisha, Chhattisgarh, and West Bengal in the 19^th century to work in British tea plantations.
• Currently hold OBC status but demand Scheduled Tribe (ST) status.
• Tribes like Munda and Santhal already have ST status in their states of origin.
• Contribute significantly to Assam’s tea production but remain socio-economically marginalised.

Jhumur Dance

• Folk dance of the Sadan ethnolinguistic group from the Chotanagpur region.
• Integral to tea garden festivals like Tushu Puja and Karam Puja, which mark harvest celebrations.
• A symbol of unity, inclusivity, and identity preservation among tea garden communities.

Source: India Today

Performance and Attire

• Women lead the dance and singing, while men play traditional instruments like Madal, Dhol, Dhak (drums), Cymbals, Flutes, and Shehnai.
• Dancers stand shoulder-to-shoulder, moving in coordinated patterns with precise footwork.
• Languages of songs: Nagpuri, Khortha, and Kurmali, heavily influenced by Assamese.
• Attire: Women wear red and white sarees, while men wear dhotis and kurtas.

Themes of Jhumur Songs

• Historical Narratives: Reflect migration struggles and exploitative labour conditions of tea workers.
• Social Bonding: Acts as a cultural glue, helping communities retain their identity.
• Emotional Expression: Expresses joy, sorrow, and resilience of the tea garden community.

{GS1 – Geo – EG – Mineral Resources} Reclassification of Barytes, Felspar, Mica and Quartz as Major Minerals

• Context (PIB): The Ministry of Mines has upgraded Barytes, Felspar, Mica, and Quartz from minor minerals to major minerals.

What is Mineral?

• A mineral is a naturally occurring inorganic substance with a definite chemical composition and crystalline structure.

Difference between Major and Minor Minerals

Reclassification of Barytes, Felspar, Mica and Quartz

• The decision aligns with recently approved National Critical Mineral Mission, which promotes domestic exploration, mining, and recovery of critical minerals from existing mines and waste materials.
• Given their significance, Inter-Ministerial Committee on Mines & Minerals, chaired by Dr. V.K. Saraswat, recommended reclassifying these minerals from minor to major minerals.

Reasons for Reclassification

• Quartz, Felspar and Mica are found in pegmatite rocks, which are an important source of many critical minerals such as Beryl, Lithium, Niobium, Tantalum, Molybdenum, Tin, etc.
  • These minerals have vital role in various new technologies, in energy transition, spacecraft industries, healthcare sector, etc.
• Baryte often occurs as concretions and vein fillings in limestone and dolostone. It is found in association with ores of Antimony, Cobalt, Copper, Lead, Manganese and Silver.
  • Baryte has various industrial applications which is used for oil and gas drilling, electronics, TV screens, rubber, glass, ceramics, paint, radiation shielding etc.

Impact

• Under the MMDR Act, 1957, leases for these minerals will extend to 50 years from the grant date or until the completion of any renewal period, whichever is later.
• There would be an increase in exploration and scientific mining of these minerals which are an important source of many critical minerals.
• This strategic move is poised to bolster India’s self-reliance in critical minerals.

{GS1 – MIH – Personalities} Pagri Sambhal Jatta Movement & Ajit Singh’s Legacy

• Context (IE): India observes February 23 as Pagri Sambhal Diwas in honor of Ajit Singh, Bhagat Singh’s uncle, who led the Pagri Sambhal Jatta movement against British agricultural laws in 1907.

Sardar Ajit Singh (1881—1947)

• Ajit Singh, born on February 23, 1881, in Khatkar Kalan, Punjab, was a revolutionary thinker and the uncle of Shaheed Bhagat Singh.
• He led an agitation by Punjabi farmers against the three farm-related acts implemented by the government in 1907. These laws included the Punjab Land Alienation Act 1900, the Punjab Land Colonisation Act 1906, and the Doab Bari Act 1907. Unfortunately, instead of providing land ownership to farmers, these laws resulted in them becoming sharecroppers.
• To fight against British rule and promote patriotism, Ajit Singh founded the Bharat Mata Society (Anju- man-i-Muhibban-i-Watan), a secret society. The active members of this group participated in the protest against the aforementioned farm-related acts. The protest was successful, and the British government repealed these laws.
• Ajit Singh’s leadership in the protest (Pagri Sambhal movement) led to his arrest and deportation to Myanmar’s Mandalay jail in 1907.
• Exiled (1909-1947), lived across Persia, Turkey, Brazil, Germany, and Italy, building revolutionary networks with Lala Hardayal and Madame Cama.
• Returned to India in March 1947 and passed away on August 15, 1947, in Dalhousie.

Source: IE

Pagri Sambhal Jatta Movement (1907)

• Symbolism of the Turban: Historically a privilege of nobility, transformed into a symbol of defiance & dignity by Guru Gobind Singh in 17^th century & later by the Pagri Sambhal Jatta movement.
• Protest against British agricultural laws restricting farmers’ land rights and ownership. Increased land and irrigation taxes deepened farmer distress, leading to mass agitation.
• Oppressive Acts Targeted: Punjab Land Alienation Act (1900), Punjab Land Colonisation Act (1906), and Doab Bari Act (1907), which favored landlords and the government.
• Led by Ajit Singh and Kishan Singh under Bharat Mata Society; slogan by Banke Dayal became a symbol of resistance.

Impact

• Forced British Concessions: Some oppressive clauses were withdrawn due to large-scale protests.
• Inspired Future Movements: Influenced the Ghadar Movement and Bhagat Singh’s revolutionary ideas.
• Govt Crackdown: Ajit Singh and Lala Lajpat Rai were arrested (May 1907), exiled to Burma, but later released under public pressure.

Pagri Sambhal Diwas: Honoring the Legacy

• Since 2021, farmers have observed Pagri Sambhal Diwas on February 23, honoring Ajit Singh’s legacy and historic farmer resistance.

{GS2 – Governance – Welfare} Subsidies Fall to a Six Year Low

• Context (IE): The Centre’s spending on subsidies for 2025-26 is budgeted to fall to a six-year-low in absolute terms and a seven-year-low relative to GDP.

Subsidies in Budget 2025

• Provided subsides a total of Rs 426,216 crore towards all Central subsidies, the lowest since 2019-20.
• In relative terms, the subsidy bill, at 1.19 % of GDP, is the lowest since the 1.18% for 2018-19.

Key Factors for Decline in Subsidies

• Discontinuation of the free, additional 5-kg per month extra foodgrains allocation to the 813.5 million public distribution system (PDS) beneficiaries.
• Lower subsidy provision for fertiliser. The fertiliser subsidy had peaked in 2022-23, which resulted from high global prices following Russia’s invasion of Ukraine.

What is a subsidy?

• Defination: A subsidy is financial assistance provided by the government to individuals or businesses through cash payments, grants, or tax breaks.
• Primary Purpose: To make essential goods and services more affordable for the people and to encourage the production and consumption of certain items.

Types of Subsidies Provided in Budget

Agricultural subsidies

• Direct subsidies: Involve actual payments made to farmers, businesses, or individuals.
  • Example: PM Kisan Samman Nidhi Scheme, which provides Rs 6,000 annually to all landholding farmer families in three installments.
• Indirect Subsidies: Help lower the price of a particular commodity or service, making it more affordable for farmers.
  • Example: Fertiliser subsidies, Interest rate subsidies (Kisan Credit Card) etc.

Interest Subsidies

• Aims to reduce interest rates for specific sectors like education, housing, and agriculture.
  • Examples: The Central Sector Interest Subsidy Scheme (CSIS) for students.

Food Subsidy

• Government provides food grains to targeted beneficiaries at highly subsidised rates through various central schemes.
  • Example: National Food Security Act (NFSA), 2013. 

Fertiliser Subsidy

• There are two main types of fertiliser subsidies:
  1. Nutrient-Based Subsidy (NBS):  Under the NBS scheme, a fixed amount of subsidy, decided on an annual/bi-annual basis, is provided on subsidized Phosphatic and Potassic (P&K) fertilisers depending on their nutrient content including Di-Ammonium Phosphate (DAP).
  2. Urea Subsidy: Urea is sold to farmers at a fixed Maximum Retail Price (MRP), with the government subsidizing manufacturers/importers by covering the gap between the delivery cost and market price.

Advantages of Subsidies

• Incentivize production: Leading to an increased supply of critical goods and services such as food, water, and education, thereby improving access for the broader population.
• Control inflation: By reducing the cost of essential goods, such as fuel, particularly during rising global prices.
• Support key industries: Help prevent the decline of key industries like agriculture and fishing, ensuring these sectors remain viable and continue to support the population.

Potential drawbacks of subsidies

• Inflationary Pressure: Excessive subsidies can increase the money supply, raising overall demand and pushing up prices, which may contribute to inflation.
• Fiscal Burden: Subsidies require significant government spending, increasing fiscal deficits and reducing funds available for development projects like infrastructure, healthcare, and education.
• Market Distortions: Subsidies artificially lowers prices disrupting the natural supply-demand balance, discouraging private investment and leading to inefficiencies in resource allocation.

{GS2 – Polity – IC – Federalism} Zonal Councils in India

• Context (IE): Union Home Minister chaired the 27^th meeting of the Western Zonal Council in Pune.

Zonal Councils

• Mooted by PM Jawaharlal Nehru in 1956 to address linguistic hostilities and promote cooperation.
• Legal Basis: Established under States Reorganisation Act, 1956 as statutory (extra-constitutional) advisory bodies.
• Objective: Foster coordination among states and the Centre for economic, social and political stability.
• Nature: Only deliberative and advisory, recommendations are not binding.

Factors Considered in Zonal Formation

• Natural Divisions: Geographical continuity and topography.
• River Systems & Connectivity: Facilitates regional cooperation in water resources.
• Cultural & Linguistic Affinity: Helps in social and administrative coordination.
• Economic & Security Needs: Ensures balanced development and law & order management.

Five Zonal Councils and Their Structure

Source: Adobe Stock

Composition

• Chairman: Union Home Minister (common chairman for all Zonal Councils).
• Vice-Chairman: Chief Ministers of states in each zone, serving by rotation for one year.
• Members:
  • Chief Ministers and two ministers from each state in the zone.
  • Administrators of Union Territories in the zone.
  • NITI Aayog representative, Chief Secretaries and Development Commissioners as advisors (without voting rights).

• Standing Committees: Chief Secretaries of member states discuss issues and prepare for main meetings.

North Eastern Council: Special Regional Body

• Legal Basis: North Eastern Council Act, 1971 (came into force in 1972).
• Members: Assam, Manipur, Mizoram, Arunachal Pradesh, Nagaland, Meghalaya, Tripura and Sikkim (added in 2002).
• Chairperson: Union Home Minister.
• Vice-Chairperson: Minister for Development of the North Eastern Region (DoNER).
• Functions: Same as Zonal Councils; In addition to coordinated regional planning and security review.

Functions and Role of Zonal Councils

• Platform for Discussion: Interstate and Centre-State issues like border disputes, linguistic minorities, and state reorganisation.
• Cooperative Federalism: Facilitates collaboration on policies, schemes and economic planning.
• Infrastructure & Development: Discusses mining, land acquisition, industrial growth and financial aid.
• Social Reforms: Focuses on education, child malnutrition, school drop-out rates and healthcare.

Issue Resolution Process in Zonal Councils

1. States propose issues for discussion at the Standing Committee level.
2. Unresolved issues are escalated to the main Zonal Council meeting.
3. Consensus-based decisions are made, but not legally binding.

{GS2 – Polity – IC – Parliament} Article 101(4)

• Context (IE): MP Amritpal Singh was detained under the National Security Act, and fears losing his seat due to prolonged absence from Parliament.

What is Article 101(4)?

• An MP’s seat may be declared vacant if absent for 60 consecutive sittings without permission.
• The 60-day period excludes prorogued sessions and adjournments exceeding four consecutive days.
• The House must formally declare the seat vacant; it is not automatic.
• No MP has ever lost a seat under Article 101(4) to date.

Constitutional Provisions & Governing Law

• Article 101: Deals with vacation of seats, disqualifications, and dual membership.
• Rules of Procedure and Conduct of Business in Parliament: Regulates MP attendance and absence.
• Committee on Absence of Members from the Sittings of the House: Reviews leave requests and recommends action.

Procedure for Seeking Leave

• MPs must write to the Committee on Members’ Absence requesting permission.
• The committee evaluates reasons (illness, detention, emergencies) and submits a report to the House.
• The House votes to approve or reject the request based on the report.

Limitations on Leave Approval

• Leave is granted for a maximum of 59 days at a time.
• If an MP needs additional leave, they must submit a fresh request.
• If an MP fails to seek or is denied leave, House may declare the seat vacant with majority approval.

Challenges & Limitations in Implementation

• Discretionary Nature: No fixed criteria for granting or rejecting leave requests.
• Lack of Precedents: No historical application of Article 101(4) leading to vacancy.
• Possibility of Political Influence: Party dynamics and House majority can impact decisions.
• Judicial Intervention: Courts can intervene in case of unfair rejection or procedural lapses.

{GS2 – Social Sector – Education} Combating Ragging in Colleges

• Context (IE): Recent ragging incidents in Kerala highlight the persistent issue of harassment, violence and intimidation in higher educational institutions (HEIs) despite existing legal frameworks.

Ragging

• SC in Vishwa Jagriti Mission v. Central Govt (2001) defined the ragging as form of harassment involving disorderly conduct, intimidation, humiliation, and forced actions that harm physical and mental well-being, leading to severe consequences such as depression, anxiety and suicides.

Types of Ragging

• Mild: Humiliating introductions, enforced dress codes, public performances & mocking accents.
• Moderate: Forced errands, verbal abuse, degrading acts and social isolation.
• Severe: Physical or sexual assault, coercion into substance abuse, extreme humiliation and torture.

Reasons for Persistence of Ragging in India

• Institutional Apathy: Ragging complaints often dismissed as minor disputes.
• Cultural Normalization: Seen as a “rite of passage” to break the ice; peer pressure to continue the cycle.
• Lack of Awareness: Poor sensitization programs and ignorance of legal consequences.
• Lack of Strict Enforcement: Weak implementation of SC guidelines and UGC regulations; non-compliance rarely penalized.
• Fear of Reporting: Victims fear retaliation, social stigma and lack of anonymity.
• Ineffective Redressal Mechanisms: Many anti-ragging committees exist only on paper.
• Legal & Definitional Challenges: No specific IPC section defines ragging, thus inconsistent enforcement.
• Competitive and Hierarchical Culture: Power dynamics in medical and engineering colleges promote dominance through ragging.

Implications of Ragging

• Physical Harm: Injuries, disabilities and student suicides.
• Psychological Trauma: Anxiety, Post-Traumatic Stress Disorder & long-term distress among victims.
• Academic Disruptions: Increased dropouts due to unbearable campus environments.
• Normalization of Violence: Fosters aggressive behavior and campus toxicity.
• Social Discrimination: Ragging reinforces caste, gender and regional biases.

Key Committees on Ragging

• Unny Committee (1999): Emphasized student safety, institutional accountability & grievance redressal.
• SC Guidelines: Issued strict legal measures after the Vishwa Jagriti Mission case.
• Raghavan Committee (2007): Recommended UGC’s 2009 anti-ragging regulations.

Legal Framework Against Ragging

• UGC Regulations (2009): Allows strict penalties against institutions failing to curb ragging.
• Bharatiya Nyaya Sanhita (BNS), 2023: Addresses wrongful restraint, criminal intimidation and assault in ragging cases.
• Anti-Ragging Laws in place for Kerala (1998), Maharashtra (1999), Andhra Pradesh (1997), Assam (1998).
• IT Act (2000): Covers cyber ragging and online harassment.

Measures to Combat Ragging

• Behavioral Monitoring: Identify aggressive tendencies early using psychological assessments and social media analysis.
• Institutional Responsibility: Mandatory FIRs for ragging incidents; enforce disciplinary actions.
• Strict Enforcement: Invoke Clause 9.4 of UGC Regulations against non-compliant institutions.
• Awareness Campaigns: Leverage social media, campus events & films to highlight dangers of ragging.
• Time-Bound Complaint Disposal System: Multi-stage process with clear deadlines for quick grievance redressal.
• Foster Mentorship Program: Positive senior-junior interactions based on respect & guidance.
• Counseling & Peer Support: Strengthen student support systems to help victims recover & reintegrate.

{GS3 – IE – Banking} Dollar-Rupee Buy-Sell Swap Arrangement

• Context (IE): The RBI will inject rupee liquidity for longer duration through another $10 billion dollar-rupee buy-sell swap arrangement.

About Dollar-Rupee Buy-Sell Swap Arrangement

• It is a foreign exchange tool used by the RBI to manage liquidity and stabilize the rupee.

How it works?

• The RBI buys U.S. dollars from banks in exchange for rupees, injecting liquidity into the system.
• After a predetermined period, the RBI sells back the dollars to banks, absorbing excess rupee liquidity.

Why is it Being Done?

• Manage Liquidity: Helps control rupee supply in the banking system.
• Stabilize Exchange Rates: by providing immediate liquidity support, thereby mitigating the pressure on the rupee during periods of foreign fund outflows.
• Control Inflation: Indirectly influences interest rates and inflation by managing liquidity.
• Dollar Reserves: It will also beef up the dollar reserves of the RBI at a time when it’s intervening in the forex market to prevent a slide in the rupee.

Liquidity Deficit in Indian Banks

• The Indian banking system encountered its worst liquidity crunch in more than a decade.
• The liquidity deficit peaked at Rs 3.15 lakh crore on January 23, its lowest level in nearly 15 years.

Reasons

• Tight Monetary Policy: Higher repo rates and liquidity-absorbing measures.
• RBI’s Intervention in Forex Market: The RBI has been selling dollars to stabilise the rupee, thereby sucking out an equivalent amount in rupee from the system.
• Tax and GST Outflows: With periodic outflows due to tax payments and Goods and Services Tax (GST) settlements, substantial cash is temporarily locked out of circulation.
• Capital Flow Volatility: Prolonged outflows by foreign investors have added to the liquidity strain.

RBI’s Recent Measures to Infuse Liquidity in Banks

• Open market operation (OMO): RBI announced to purchase government securities worth ₹60,000 crore in three tranches of ₹20,000 crore each.

• OMO Refers to purchase and sale of securities in open market by the Central Bank of a country.

• Cut cash reserve ratio (CRR): by 50 basis points to 4% in December 2024. CRR is the proportion of funds that banks must park with the RBI.
• Repo Rate Adjustments: RBI cut the repo rate by 25 basis points to 6.25%. Reducing the repo rate makes borrowing cheaper, boosting liquidity.

• It is the rate at which banks borrow money from the RBI for short-term needs.

• Variable Repo Rate Auctions: RBI conducted ₹50,000 crore 56-day VRR auctions and recently announced 49-day variable rate repo for Rs 75,000 crore.

What is Variable Repo Rate (VRR)?

• The VRR is a monetary policy tool used by the RBI to manage liquidity in the banking system.
• Unlike the fixed repo rate, the VRR is decided through market-based auctions. VRR is used for usually ranging from 2 to 14 days or more and auction amount is decided by RBI.
• It is a tool under Liquidity Adjustment Facility.
  • Under this, RBI has the discretion to conduct overnight repo or longer term repo auctions at fixed rate or at variable rates depending on market conditions and other relevant factors.
• The VRR complements the repo rate by offering a flexible alternative based on market conditions.

Role of Variable Repo Rate

• Inflation control: The RBI uses VRR auctions to absorb excess funds from banks when inflation is high. This helps control inflation by reducing excess money in circulation.
• Address Liquidity Shortage: During times of liquidity shortages, the RBI can lower the VRR or increase the frequency of auctions to inject more funds into the banking system.

{GS3 – IE – Industry} Rising Servicification in Manufacturing

• Context (TH): The Economic Survey 2024-25 raises concerns over rising corporate profits amid slowing wage growth, impacting consumer demand.

Servicification of Manufacturing

• It is the increasing integration of services within traditional manufacturing processes, where firms offer value-added services such as maintenance, consulting, customization & digital solutions alongside physical products.

Levels of Servicification

1. Production Stage: Use of AI, automation, and data analytics to enhance efficiency.
2. Product Enhancement: Bundling installation, maintenance, and software updates with products.
3. Business Model Transformation: Shift from product sales to service-based solutions, e.g., subscription models and leasing instead of selling.

Factors Driving Servicification

• Changing Consumer Preferences: Demand for personalized, service-integrated products.
• Technological Advancements: Adoption of AI, automation, and IoT in manufacturing.
• Competitive Pressures: Firms seek differentiation through bundled service offerings.
• Cost Optimization: Outsourcing non-core functions for better efficiency.

Benefits of Servicification

• Increased Revenue: Generates new income streams beyond product sales.
• Customer Retention: Enhances engagement through ongoing services.
• Competitive Differentiation: Provides an edge in saturated markets.
• Sustainability: Encourages circular economy practices, such as remanufacturing and extended product lifecycles.

Challenges of Servicification

• High Initial Investment: Requires significant spending on technology and skill development.
• Operational Complexity: Managing both manufacturing and service operations is challenging.
• Workforce Transformation: Employees need skills in data analytics, digital solutions & customer service.
• Market Adaptation: Consumers may be hesitant to pay for added services initially.

Wage Growth Concerns

• Corporate profits surged by 22.3% in 2023-24, but employment expanded by just 1.5%.
• Wage growth for employees and contract workers has not kept pace with inflation.
• 4,000 listed companies recorded a 6% revenue growth, but employee expenses slowed to 13% from 17% in the previous year.
• Weak wage growth could curb demand, affecting long-term economic expansion.

Impact of Servicification on Employment and Wages

• Shift to External Agencies: Manufacturing firms now outsource logistics, utility management, and customer support.
• Changing Employment Structures: Service providers, not manufacturers, employ a growing segment of the workforce.
• Difficult Wage Comparisons: Traditional wage assessments may not fully capture compensation shifts in service-based roles.

Arguments Countering the Concerns

• Regular Wage Adjustments: Wage revisions are aligned with inflation & industry benchmarks to retain talent.
• Impact of Servicification: Increased outsourcing of non-core functions makes traditional wage comparisons less relevant.
• Structural Shift in Employment: More workers are now employed by service providers rather than manufacturers directly.

Way Forward: Call for Balanced Growth

• The Economic Survey and industry experts emphasize the need for balancing corporate profitability with wage growth. Sustained economic growth relies on rising wages to drive consumer spending and long-term stability.