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Current Affairs – January 30, 2025

{GS1 – Geo – EG – Mineral Resources} National Critical Mineral Mission

  • Context (PIB): Union Cabinet has approved the National Critical Mineral Mission (NCMM) with an expenditure of ₹34,300 crore to strengthen India’s critical mineral value chain.

About National Critical Mineral Mission

Features of NCMM

  • Aimed at Innovation: Promote research in advanced mineral processing & cutting-edge technologies for mineral processing and recovery and establish Centers of Excellence.
  • Comprehensive Mineral Value Chain: Encourages both public & private investment in global mining projects encompassing exploration, mining, beneficiation, processing & recycling of critical minerals.
  • Financial Support: ₹16,300 cr. from govt for exploration and recovery of minerals through subsidies and grants & ₹18,000 cr. expected investment from PSUs & private companies.
  • Infrastructure Development: Establishment of mineral processing parks and promotion of critical mineral recycling.
  • Stockpile Strategy: Plans to build a national reserve of critical minerals to ensure long-term supply security.
  • Faster Regulatory Approvals for critical mineral mining projects to ensure smooth operations.
  • Self-Reliance in Critical Minerals: Reduce dependence on imports by enhancing domestic production and acquiring foreign assets.

Critical Minerals Under NCMM

  • Lithium & Cobalt: Essential for electric vehicle (EV) batteries and electronics.
  • Graphite & Nickel: Used in battery storage and alloys.
  • Rare Earth Elements (REEs): Key for high-tech manufacturing and defense applications.
  • Titanium & Tungsten: Critical for aerospace and industrial applications.
  • Vanadium & Molybdenum: Used in steel production and energy storage solutions.

Technological and Legislative Support

  • Mines and Minerals (Development and Regulation) Act, 1957: The 2023 amendments enhance exploration and mining of critical minerals.
  • Geological Survey of India (GSI): Conducting large-scale exploration projects for critical minerals, with 368 projects ongoing.
  • S&T PRISM Program: Encourages start-ups and MSMEs in mineral research and commercialization.
  • KABIL’s Foreign Acquisitions: KABIL, a JV of the Ministry of Mines, has secured mining rights in Argentina for Lithium.

Critical Minerals

  • critical mineral is a metallic or non-metallic element crucial for modern technologies, economies, and national security, with the potential risk of disruptions to its supply chains. It includes both primary and processed minerals.
  • A mineral is critical when the risk of supply shortage and associated economic impact is (relatively) higher than other raw materials.

Critical Minerals

  • Countries create their own critical minerals list based on strategic needs.
  • These are minerals that are essential for economic development and national security.
  • The lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations can lead to “supply chain vulnerabilities and even disruption of supplies”.

Critical Minerals of India

  • GoI has unveiled the country’s first report on “Critical Minerals for India” and has identified 30 critical minerals, including nickel, titanium, vanadium, tungsten, etc.
  • The identification of the critical minerals is a part of multiple strategic value chains, which include:
    • Clean technologies initiatives (such as zero-emission vehicles, wind turbines, and solar panels);
    • Information and communication technologies (including semiconductors);
    • Advanced manufacturing inputs and materials (defence applications, permanent magnets, & ceramics).
  • The minerals were identified based on a report by an Expert Committee of the Ministry of Mines.

{GS2 – IR – Asia} Evolution of India-Indonesia Ties

  • Context (IE): Indonesian President 2025 Republic Day visit underscores evolving relationship between India & Indonesia, marked by significant transformations over past 75 years.

Contemporary Engagement and Strategic Partnership

Historical Foundations

  • Colonial Solidarity (1940s-1950s): India supported Indonesia’s independence from Dutch colonial rule. Nehru banned Dutch airlines over India and provided humanitarian aid.
  • Founding of Strategic Alliances: The two countries played pivotal roles as founding members of the Bandung Conference (1955) and Non-Aligned Movement (NAM, 1961).
  • Treaty of Friendship (1951): Signed with the aim of “perpetual peace and unalterable friendship,” solidifying a strong, friendly bond.
  • Sukarno’s Visit to India: Indonesian President Sukarno visited India as the chief guest at the first Republic Day in 1950, symbolizing robust diplomatic ties.

Revitalization in the 1990s

  • Economic Liberalization and the Look East Policy: India’s economic reforms under P.V. Narasimha Rao led to the ‘Look East’ policy, fostering stronger economic and trade links.
  • Strategic Cooperation: Both nations enhanced defense cooperation, initiated joint military exercises, and shared intelligence for regional security.

Multi-Sectoral Co-operation

  • Economic Relations: Indonesia became India’s second-largest trading partner in ASEAN by 2022. Bilateral trade reached $29 billion in 2023-24.
  • Cultural & Historical Ties: India and Indonesia share over 2,000 years of cultural and commercial interactions, with student exchanges, tourism and religious exchanges in Hinduism, Buddhism, and Islam, and strong cultural influences evident in Indonesia’s adaptations of Indian epics like the Ramayana.
  • G20 Engagement: India actively participated in Indonesia’s G20 presidency in 2022, with the Indian PM attending the G20 Summit in Bali, and later assumed the G20 presidency (2022-2023), fostering close cooperation with Indonesia.
  • Investment: Indian investments in Indonesia totaled USD 1,219 million (2000-2022) across 4,750 projects, with significant investments channeled via Singapore, suggesting a higher potential than recorded.
  • Strengthened Defense and Maritime Cooperation: The signing of the “Shared Vision of Maritime Cooperation” in 2018 & joint military exercises further solidified defense collaboration.
  • Blue Economy Cooperation: India and Indonesia jointly focus on the blue economy for sustainable maritime development, with Indonesia’s expertise in leveraging marine resources providing opportunities for collaboration.
  • Defence Relations: Defence ties between India and Indonesia were strengthened through the Comprehensive Strategic Partnership (2018), with regular joint military exercises like GARUDA SHAKTI.

Challenges in India-Indonesia Relationship

  • Trade Imbalance: India’s heavy imports of palm oil and coal from Indonesia create a trade imbalance, with palm oil imports alone reaching $11 billion in 2022.
  • Unrealised Trade Potential: Bilateral trade potential is estimated at $61 billion33% higher than current trade, highlighting untapped opportunities in agriculture and renewable energy sectors.
  • Dominance of China: Indonesia’s substantial Chinese investments under the Belt and Road Initiative, such as railways, have raised concerns in India about growing Chinese influence in the region.
  • Regulatory Challenges: Differences in defense procurement processes have stalled joint defense projects, limiting deeper defense cooperation.
  • Ineffective Investor Window: A special window to address Indian investors’ concerns has been dysfunctional, hindering business expansion in Indonesia.
  • Geopolitical Divergences on Sensitive Issues: Differences over issues like the South China Sea and Kashmir create occasional rifts, complicating diplomatic efforts.
  • Connectivity Issues: Limited direct air connectivity and visa barriers restrict people-to-people interactions, impeding tourism and business growth between the two nations.

Future Potential

  • Securing Shipping Lanes: With the growing tensions in the Indo-Pacific, both countries have focused on securing vital shipping routes.
  • Defense Technology Sharing: A focus on upgrading defense technology and collaborative defense production projects holds future promise.
  • Renewable Energy and Technology: India and Indonesia are exploring collaboration in the renewable energy sector, as well as technology and infrastructure development.

Way Forward

  • Tourism Diplomacy: Launch a ‘RICH’ (Religious, Cultural & History) tourism initiative to boost people-to-people ties and promote shared heritage.
  • Enhance Trade: Accelerate the Comprehensive Economic Partnership Agreement (CEPA) to remove trade barriers and expand economic cooperation.
  • Expanding Connectivity: Expanding direct flights and securing maritime trade routes will enhance tourism, trade, and bilateral relations, especially concerning the South China Sea.
  • Strategic Partnerships: Encourage Indonesia to join global initiatives like the International Solar AllianceCoalition for Disaster Resilient Infrastructure, and Global Biofuels Alliance for mutual growth.
  • Promoting Local Currency Trade: The implementation of Local Currency Settlement (LCS) can foster deeper financial integration between the two countries.
  • Multilateral Engagement: Strengthen cooperation through regional forums such as the ASEAN Regional ForumIORA, and IONS for strategic alignment and regional stability.
  • Strategic & Economic Synergy: Focus on joint defense, maritime security, and infrastructure projects to build a robust Indo-Pacific framework that balances China’s influence.
  • Deepening Defense Cooperation through IND-INDO CORPAT: This maritime security framework should be further developed, facilitating more joint defense initiatives.
  • Deepen Collaborations: Expand partnerships in IT, energy, and tourism, fostering cultural ties and positioning India as a trusted partner for Indonesia’s growth.

{GS2 – IR – Issues} Trump’s Executive Order on Birthright Citizenship

  • Context (TH): US District Judge blocked President Trump’s executive order attempting to limit birthright citizenship.

Birthright Citizenship in the US

  • Birthright citizenship (jus soli) grants automatic citizenship to individuals born within country’s territory.
  • 14th Amendment of the US Constitution guarantees birthright citizenship to those “born or naturalised in the United States, and subject to the jurisdiction thereof.”

Types

  • Jus Soli: Citizenship based on place of birth.
  • Jus Sanguinis: Citizenship through ancestry or parentage.

Order Details

  • Applicable to children born in the US to parents who are not US citizens or lawful permanent residents, including those on temporary visas.
  • Exclusions: Children born to foreign diplomats or hostile occupying forces; children of unlawful immigrants or temporary visa holders.
  • Limitations: Defines “mother” & “father” as the biological progenitors, reinforcing traditional definitions.

Issues with Trump’s Executive Order

  • Contradiction with Legal Precedents: The order challenges long-established interpretations of the 14th Amendment, conflicting with established legal rulings on birthright citizenship.
  • Exclusion of Certain Groups: The order would deny citizenship to children of undocumented immigrants, temporary visa holders, and even those born to foreign diplomats or on foreign ships.
  • Exclusion of Transgender and Queer Parents: The order narrowly defines “mother” and “father” based on biological sex, excluding transgender and queer parents.
  • Encouraging Unauthorized Immigration: The administration justifies the order by claiming birthright citizenship encourages unauthorized immigration and strains public resources.
  • Impact on Mixed-Status Families: The order would adversely affect children born to parents on non-permanent work visas or those awaiting Green Cards, stripping them of U.S. citizenship.
  • Social Consequences for Affected Children: Millions of children would lose access to essential services, negatively affecting their welfare.

{GS2 – Polity – IC – FRs} SC Split Verdict on Chhattisgarh Burial Case

  • Context (IE): SC delivered a split verdict in the Chhattisgarh burial case, addressing the burial rights of a converted Christian against the backdrop of religious discrimination.

Key Points of the Split Verdict

Justice B.V. Nagarathna’s Progressive Opinion

  • Advocated for the burial to occur on private land, emphasizing constitutional values such as equality, dignity, and secularism.
  • Refusal to allow burial in the tribal graveyard is discriminatory and unconstitutional.
  • Directed state to demarcate burial grounds for Christians across all districts to avoid future disputes.
  • Highlighted the violation of Articles 14 (equality), 15 (freedom from discrimination), and 21 (right to dignity, including dignity in death).

Justice S.C. Sharma’s Conservative Opinion

  • Burial should take place at a designated Christian burial ground, prioritizing regulatory uniformity and social harmony.
  • Dismissed the claim for burial in a community-designated graveyard, stressing the need for social order.

Issues Involved

  • Religious Discrimination: The case exposed entrenched biases, especially regarding burial rights based on religious identity.
  • Systemic Discrimination: The village’s refusal to allow the burial reflected long-standing religious biases embedded in rural governance structures.
  • Violation of Constitutional Rights: The refusal to allow burial in the tribal graveyard violated the constitutional principles of equality and dignity.
  • Secularism vs. Regulatory Norms: The clash between upholding individual rights and the need for regulatory uniformity led to divergent opinions.
  • Failure to Confront Structural Inequality: The court avoided addressing the broader implications of systemic discrimination in burial practices, leaving an important issue unresolved.

Implications of the Verdict

  • Upholding Individual Rights: Justice Nagarathna’s ruling emphasized the fundamental right to dignity, even in death, underscoring the importance of secularism.
  • Promoting Secular Values: The decision called out the state’s failure to prevent religious exclusion and mandated reforms to address burial rights.

{GS3 – IE – Exports} eCoO 2.0 System

  • Context (PIB): Directorate General of Foreign Trade (DGFT) launched the enhanced eCoO 2.0 system to simplify export certification, facilitating smoother trade & improving EoDB for Indian exporters.

Features of eCoO 2.0 System

  • The eCoO 2.0 system is a digital platform aimed at simplifying the issuance of Non-Preferential Certificates of Origin (CoO). It promotes digital authentication, reduces paperwork, and ensures faster processing of trade documents.
  • Multi-User Access: Exporters can now authorize multiple users under a single Importer Exporter Code.
  • Aadhaar-based e-Signing: Offers an alternative to Digital Signature Tokens, enhancing flexibility and security.
  • Integrated Dashboard: Provides real-time access to eCoO services, Free Trade Agreement (FTA) information, trade events, and notifications.
  • In-lieu Certificate of Origin: Allows exporters to request rectifications on previously issued certificates through an easy online application process.
  • High Processing Volume: The system processes over 7,000 eCoOs daily and connects 125 issuing agencies, 110 chambers of commerce, and 650+ issuing officers.

Back-to-Back Certificate of Origin

  • Issued for goods not of Indian origin, intended for re-export, trans-shipment, or merchanting trade.
  • Transparency: Ensures accuracy by explicitly mentioning details of the origin and providing supporting documents from the foreign country of origin.
  • Simplified Process: This initiative enhances processing speed and is especially beneficial for global supply chains involving intermediary trade through India.

Benefits and Significance

  • Enhanced Trade Efficiency: Reduces manual paperwork, accelerating export documentation and processing.
  • Security and Traceability: Digitally signed CoOs ensure traceability and prevent fraudulent certifications.
  • Boost to Global Trade: Facilitates smoother re-exports, trans-shipments, and intermediary trade, strengthening India’s role in global supply chains.
  • Competitive Advantage: Faster approval processes help exporters comply with international trade agreements, making them more competitive.
  • Alignment with Paperless Trade Goals: Supports India’s push for paperless trade and reinforces DGFT’s trade facilitation efforts.
  • Promotion of Ease of Doing Business: DGFT’s continued efforts in digitalization and trade facilitation will improve India’s trade competitiveness globally.

{GS3 – IE – Industry – MSME} Mutual Credit Guarantee Scheme

  • Context (PIB | ET): Government of India has approved the Mutual Credit Guarantee Scheme (MCGS) for MSMEs to support the manufacturing sector, aligning with the 2024-25 Budget announcements.

Key Features of the Scheme

  • Eligibility: MSMEs with a valid Udyam Registration Number.
  • Loan Coverage: Provides 60% guarantee coverage for loans up to Rs. 100 crore.
  • Loans can cover up to 75% of the project cost for plant and machinery/equipment.
  • Covers loans sanctioned within 4 years from operational guidelines or until Rs. 7 lakh crore in guarantees are issued.
  • Initial Contribution: Borrowers must deposit 5% of the loan amount upfront.
  • Repayment Terms: Upto 8 years with a 2-year moratorium for loans up to Rs. 50 crore. Flexible repayment terms for loans above Rs. 50 crore.
  • Annual Guarantee Fee: No fee during the year of loan sanction; 1.5% p.a. in subsequent 3 years; 1% p.a. thereafter.

Member Lending Institutions (MLIs)

  • Scheduled Commercial Banks (SCBs), Non-Banking Financial Companies (NBFCs), and All India Financial Institutions (AIFIs) that register with the National Credit Guarantee Trustee Company Limited (NCGTC).

Impact on MSMEs

  • Collateral-Free Loans: Facilitates access to debt capital for MSMEs to purchase machinery/equipment.
  • Manufacturing Boost: Expected to accelerate manufacturing and contribute to the “Make in India” initiative, aiming to increase manufacturing sector’s share to 25% of GDP.

{GS3 – S&T – Tech} DeepSeek’s R1 Model

  • Context (IE | IE | IE | IE): The launch of DeepSeek’s R1 model disrupted power stocks causing a major selloff in US power and utility stocks, as investors reassessed AI-driven electricity demand.

Factors for Projected Surge in Energy Demand

  • Rising AI Boom: The number of global data centers is expected to grow from the current 9,000-11,000.
  • Increasing Share of Power Usage: Data centers currently use 1-1.3% of global electricity, projected to double by 2026 to match Japan’s total energy consumption.

Why does AI Consume High Energy?

  • GPU-Driven Computation: AI models rely on thousands of GPUs housed in data centers, which consume enormous electricity.
  • Training vs. Querying: Training large models like GPT-3 requires 1,300 MWh of electricity, equivalent to 1.6 million hours of Netflix streaming. Querying AI models also consumes 10-33 times more energy than a Google search.
  • Dependence on Fossil Fuels: AI data centers are built in locations with readily available coal or natural gas-generated power due to stability issues with renewable energy.

Why DeepSeek’s R1 Model Disrupted Power Stocks

  • Study finds Deepseek’s annual energy consumption could reach 134 terawatt hours by 2027, equal to the Netherlands’ electricity demand.
  • But, R1 model uses only 2,000 GPUs compared to OpenAI’s 16,000+, reducing electricity consumption.

Lessons for India

  • Inspired by ISRO’s Model: AI experts liken India’s opportunity in AI to ISRO’s success in space technology, achieving efficiency at lower costs.
  • Reducing Computation Costs: R1’s “mixture of experts” approach enables smaller, specialized AI models to work collaboratively, making AI development cost-effective.
  • Potential for Democratization: A cost-efficient model can enable AI accessibility for researchers in resource-constrained environments.
  • Indigenous AI for Indian Languages: AI models should cater to regional diversity and local needs. Eg- AI-powered apps that guide farmers in diagnosing crop diseases in native languages.
  • Prioritize Energy-Efficient AI: Develop AI models that consume less power to reduce environmental impact.
  • Strengthen Indigenous AI Development: Focus on foundational AI research under the IndiaAI Mission and encourage private sector innovation.
  • Enhance Public-Private Collaboration: Ensure sustained government funding and strategic industry partnerships for AI growth.

{Prelims – In News} Lezim Dance

  • Context (IE | INTACH): The upcoming Bollywood film Chhava based on Chhatrapati Sambhaji Maharaj has sparked controversy over a scene showing the Maratha king performing the Lezim dance.

Lezim

  • Origin: Lezim is a traditional folk dance from Maharashtra, linked to the state’s cultural heritage.
  • Instrument: Performed with a Lezim, a wooden stick with attached jingling cymbals that produce rhythmic sounds during the dance.

Lezim

Source: Young Intach

  • Accompaniment: The dance is accompanied by instruments like the dhol (drum) and dhalgi, which provide a fast-paced rhythm.

Dance Features

  • Vigorous Movements: Involves energetic steps such as squatting, jumping, and stepping, often in synchronized formations.
  • Physical Fitness: Originally part of martial training to enhance physical strength.
  • Group Performance: Typically performed by a group of dancers, often around 12, who perform in perfect synchronization with rhythmic beats.
  • Costume: Dancers wear a white kurta, pajama, a colorful belt & a turban to enhance the visual appeal.

Cultural Role

  • Cultural Celebrations: Lezim is prominently performed during festivals like Ganesh Chaturthi and other cultural events, symbolizing community spirit and pride.
  • Fitness Drill: Beyond festivals, it is also used as a fitness drill in schools & as part of cultural programs.

Lezim and Its Variations

  • Regional Influence: The dance has variations in Maharashtra and Gujarat, with both states adding their cultural traditions to the performance.
  • Performance Structure: The dance is characterized by intricate and energetic steps, often culminating in synchronized movements like forming human pyramids.

Historical Significance

  • Martial Roots: Originated as a military exercise in akhadas (traditional gymnasiums) to improve strength and discipline.
  • Promotion by Shivaji Maharaj: The dance was used by Shivaji Maharaj to maintain discipline among soldiers, symbolizing Maratha pride and unity.

About Chhatrapati Sambhaji Maharaj

  • Historical Context: Eldest son of Chhatrapati Shivaji Maharaj, who came to power after a succession struggle with his half-brother Rajaram in 1681.
  • Maratha-Mughal Conflicts: Defended forts against Mughal forces before being captured and executed in 1689 by Aurangzeb.
  • Legacy: Revered as a protector of religion and freedom in Maharashtra’s history.

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