02-January-2025-Daily-Current-Affairs

TACKLING DELIMITATION AND FERTILITY DECLINE

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The proposed delimitation exercise has raised concerns among southern states like Tamil Nadu and Andhra Pradesh due to their success in population control, potentially leading to reduced parliamentary representation.

Concerns Over Delimitation

• Southern states, with low fertility rates, may lose parliamentary seats compared to northern states with higher population growth.
• Politicians and citizens in the south view this as a penalty for successful family planning. Andhra Pradesh is considering reintroducing policies to incentivize larger families.
• Tamil Nadu leaders, like M.K. Stalin, humorously suggested having more children to maintain representation.

Lessons from China

China’s Fertility Policies:

• The one-child policy reduced population growth but led to societal challenges like skewed demographics and increased dependency burdens.
• Attempts to reverse low fertility through incentives in China, Japan, and South Korea have largely failed.

Risks of Forced Regulation:

• Quick measures to influence reproduction can create long-term issues in population composition and social security systems.
• Migration is often needed to address these imbalances.

Demographic Divide and Representation

• Basing political representation solely on population penalizes regions that adopted family planning early.
• This approach challenges the federal balance and creates disproportionate representation between regions.
• Weigh population counts with socio-economic factors such as education and development when determining representation.

Impact on Women

• Challenges for Women: Encouraging higher fertility places a burden on women without adequate state support.

• The societal benefits of fertility decline have not translated into improved support for women.

• Need for State Support: Policies must include social and financial support for families and compensate women for the personal costs of reproduction.

Why India Needed Population Control Measures in 1970

• Strain on Resources: India’s population in 1970 was 547 million, leading to food insecurity and overburdened resources.
• Economic Challenges: Rapid population growth hindered job creation, causing high unemployment and poverty.
• Healthcare & Education Pressure: Limited resources strained healthcare and education systems, contributing to high infant mortality (127/1,000) and low literacy.

Population Control Measures in 1970

• Family Planning Programs: Promoted birth control and family planning methods.
• Awareness Campaigns: Public education on population control and contraceptives.
• Sterilization Programs: Focused on sterilization, especially during the 1975-1977 Emergency period.

Way Forward

• Reversing fertility rates is complex and may not be effective; addressing regional imbalances through migration is a better short-term solution.
• Political representation should reflect development and capability factors rather than just population counts.
• Comprehensive policies are needed to balance population sustainability with equitable political representation.

Practice Question

1. With reference to the Delimitation Commission in India, consider the following statements:

1. The Delimitation Commission is constituted by the Election Commission of India under the Delimitation Act.
2. Its primary function is to redraw the boundaries of constituencies based on the decennial census.
3. The recommendations of the Delimitation Commission are binding and cannot be challenged in a court of law.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2, and 3

Answer: B

Explanation:

The Delimitation Commission is constituted by the Government of India, not the Election Commission of India.

The Commission redraws constituency boundaries based on census data.

The recommendations of the Delimitation Commission are final and legally binding.

FARM FIRE PROTEST AND ITS IMPLICATIONS

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The indefinite hunger strike by Jagjit Singh Dallewal, a leader of the Samyukt Kisan Morcha (Non-Political), has drawn attention to the unresolved demands of farmers. The protest highlights the ongoing challenges in the agriculture sector and the need for dialogue between the government and farmers.

Key Highlights of the Protest

• Farmers have been protesting at the Punjab-Haryana border for almost a year under the leadership of Jagjit Singh Dallewal.
• Dallewal, a 70-year-old cancer patient, began his hunger strike on November 26, 2024.

Farmers’ Demands

• Implementation of a legal Minimum Support Price (MSP) as recommended by the National Commission on Farmers (M.S. Swaminathan).
• Full waiver of farm debts for all farmers.
• Withdrawal of cases filed against farmers during protests against the now-repealed farm laws of 2021.

Support and Opposition

• Farmers across Punjab supported a bandh on December 30, showing solidarity with Dallewal.
• Major farmer organizations, including the Samyukt Kisan Morcha and Bharatiya Kisan Union, have urged the government to address the demands and convince Dallewal to end his hunger strike.

Legal and Political Involvement

• Supreme Court’s Intervention:  The Supreme Court has asked the Punjab government to ensure medical aid for Dallewal by January 4, 2025.
• Political Responses: Opposition parties have demanded that the Union Government initiate discussions with the protesting farmers.

Concerns Raised

• Prolonged hunger strikes can endanger lives and raise concerns about coercion or pressure.
• Sane voices within the farmer community suggest joint protests over individual hunger strikes.
• Governments at the State and Union levels must act promptly to address the crisis.
• Farmers’ leaders and supporters need to find common ground for resolution.

MINIMUM SUPPORT PRICE (MSP)

MSP is a pre-announced price at which the government buys crops from farmers to ensure they receive a fair income, especially during market price fluctuations.

• It aims to protect farmers from distress sales and encourage agricultural productivity.

Calculation

• MSP is determined based on recommendations by the Commission for Agricultural Costs and Prices (CACP).
• It factors in the cost of production, demand-supply dynamics, and a reasonable profit margin for farmers.

Benefits and Concerns

• MSP safeguards farmers against price volatility and ensures food security.
• However, issues such as limited procurement coverage, crop skewness (favoring wheat and rice), and environmental concerns over over-cultivation persist.

Conclusion
Resolving farmers’ demands requires proactive measures and open dialogue between the government and stakeholders, ensuring that the focus remains on sustainable solutions for the agriculture sector.

Practice Question

1. With reference to the Minimum Support Price (MSP) in India, consider the following statements:

1. MSP is announced for all agricultural crops grown in India.
2. The Commission for Agricultural Costs and Prices (CACP) recommends MSP to the government.
3. MSP aims to protect farmers from distress sales and price fluctuations.

Which of the statements given above are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2, and 3

Answer: B

Explanation:

MSP is announced only for select crops (23 currently) and not for all crops grown in India.

The CACP recommends MSP based on various factors, including cost of production and market trends.

MSP is intended to protect farmers from price fluctuations and ensure fair compensation for their produce.

SCHOOL DROPOUT RATES IN INDIA

TOPIC: (GS2) SOCIAL ISSUES: THE HINDU

While India has shown overall improvement in retaining students in schools from 2019 to 2024, certain states like Bihar and Assam have witnessed worsening dropout rates. In contrast, states like Kerala and Tamil Nadu have achieved remarkable progress.

National Trends in Dropout Rates

• In 2024, over 80 out of 100 girls who began schooling completed secondary education compared to 73.5 in 2019.
• For boys, the completion rate improved to 77.2 in 2024 from 72.4 in 2019.

States with Increased Dropout Rates

Bihar:

• Girls’ secondary education completion dropped from 51.6 in 2019 to 40.3 in 2024.
• For boys, the rate decreased from 51.2 in 2019 to 38.8 in 2024.

Karnataka:

• Among girls, the completion rate fell from 79.3 in 2019 to 76.5 in 2024.
• Boys’ completion rate dropped from 73.6 in 2019 to 70.7 in 2024.

Haryana:

• Once a top-ranking state, it saw significant declines in rankings across school levels.

States with Improved Dropout Rates

Kerala:

• Boys completing secondary education increased from 88.3 in 2019 to 95.7 in 2024.
• Girls’ rates improved from 93.2 to 97.5 in the same period.

Tamil Nadu:

• Boys completing secondary education rose from 81.3 in 2019 to 89.2 in 2024.
• Girls’ rates increased from 89.4 to 95.6.

Key Observations

• Kerala and Tamil Nadu transitioned from already strong positions to even better outcomes.
• States like Gujarat remained stagnant at lower ranks.
• Uttarakhand showed significant improvement, moving from 11th to 4th in rankings for girls’ secondary education.

Conclusion:
While some states have excelled in reducing dropout rates, others face serious challenges that demand targeted interventions.

Practice Question

1. Which of the following components are part of the Samagra Shiksha Abhiyan, a flagship scheme to reduce school dropout rates and improve educational outcomes in India?

1. Early Childhood Care and Education (ECCE)
2. Inclusive education for children with special needs
3. Financial assistance for higher education abroad
4. Vocational education at secondary level

Select the correct answer using the code below:

1. 1, 2, and 4 only
2. 1 and 3 only
3. 2, 3, and 4 only
4. 1, 2, 3, and 4

Answer: A

Explanation:

The Samagra Shiksha Abhiyan integrates school education from pre-primary to senior secondary levels.

It includes Early Childhood Care and Education (ECCE), inclusive education for differently-abled children, and vocational training at the secondary level.

Financial assistance for higher education abroad is not part of this scheme.

THE DECLINE OF INDIA’S PARLIAMENTARY STANDARDS

TOPIC: (GS2) INDIAN POLITY: THE HINDU

India’s Parliament, considered the cornerstone of democracy, is witnessing a decline in decorum, debate, and functionality. Frequent disruptions and lack of meaningful dialogue between the government and Opposition are eroding public trust.

Current Challenges in Parliamentary Proceedings

Frequent Disruptions

• Parliamentary sessions are often marked by adjournments and lack of discussions.
• Both the Opposition and Treasury benches contribute to disruptions, derailing meaningful debates.
• Recent disruptions included demonstrations outside the House, even leading to accusations of assault among MPs.

Erosion of Civility

• Political courtesy and mutual respect, hallmarks of earlier generations, have diminished.
• Historical examples, such as Jawaharlal Nehru’s and Atal Bihari Vajpayee’s mutual respect, contrast sharply with the current hostile environment.
• Today, both government and Opposition view each other as adversaries, hindering cooperative functioning.

Decline in Parliamentary Performance

• Earlier, skilled debaters and orators elevated legislative discussions.
• In contrast, today’s MPs often focus on constituent services over parliamentary performance.
• Political representation now relies more on electoral strategies than legislative contributions.

Partisan Attitudes

• The ruling party often uses its majority to pass bills without engaging the Opposition.
• Opposition members, in turn, resort to disruptions, perpetuating a cycle of inefficiency.
• A lack of trust between the two sides deepens the divide.

Reasons for Decline

• Lack of Effective Rules Enforcement: Speakers often adjourn sessions instead of addressing unruly behaviour. Suspension or expulsion of members requires consensus, which is rarely achieved.
• Public Apathy: Citizens no longer prioritize parliamentary performance when electing representatives. MPs are judged by local influence and service delivery, not legislative contributions.
• Government’s Overreach: The executive often treats Parliament as a formality, sidelining meaningful deliberation. The Prime Minister’s limited attendance reflects this diminishing role.

Impact on Democracy

• The marginalization of Parliament undermines its consultative and deliberative roles.
• Continuous neglect may lead to public indifference toward its relevance, weakening democratic foundations.

Conclusion

India’s democracy relies on a vibrant, functional Parliament. Restoring civility, fostering dialogue, and prioritizing legislative performance are essential to preserve its role as a democratic pillar.

SURGE IN GOLD LOAN NPAS DUE TO SLOWING ECONOMY AND RISING DEBTS

TOPIC: (GS3) ECONOMY: INDIAN EXPRESS

A concerning trend has emerged with a 30% increase in gold loan defaults, raising concerns about rising Non-Performing Assets (NPAs) in the economy. This surge is attributed to a slowing economy and increased borrower indebtedness.

What Are Non-Performing Assets (NPAs)?

• NPAs refer to loans where the borrower has failed to make payments as agreed, usually for a period exceeding 90 days.
• These loans are considered a liability for financial institutions, impacting their financial health and operations.

Role of Non-Banking Financial Companies (NBFCs):

• NBFCs are financial institutions that offer banking services like loans and investments but do not hold a banking license.
• They are regulated by the Reserve Bank of India (RBI) and are essential in providing credit to sectors where traditional banks might not reach.

Surge in Gold Loan Defaults:

• Gold loan NPAs of banks and NBFCs rose by 30%, reaching Rs 6,696 crore in June 2024, up from Rs 5,149 crore in March 2024.
• Economic slowdown and lower incomes have made it harder for borrowers to repay loans, resulting in higher defaults.

Reasons Behind the Default Increase:

• Gold prices initially increased, prompting borrowers to pledge gold for expenses such as education fees and medical bills.
• However, many borrowers underestimated the impact of loan amounts surpassing the value of their gold, leading to defaults and a decline in their credit scores.

RBI’s Response and Regulatory Measures:

• The RBI has raised concerns over irregularities in gold loan practices, urging lenders to review and improve policies.
• It has identified issues in loan-to-value ratios, risk weights, and transparency during gold auctions, calling for better monitoring and regulations.

Solutions for Reducing Defaults:

• Financial institutions must strengthen their credit assessment processes and provide more transparent loan terms.
• Increased financial literacy and more flexible repayment options are necessary to help borrowers manage loans effectively.

NON-PERFORMING ASSETS (NPAS):

NPAs are loans where borrowers have failed to repay the principal or interest for over 90 days. They negatively affect the financial stability of banks and other lending institutions, as these loans no longer generate income.

Categories of NPAs:
NPAs are classified into three categories: Substandard (up to 12 months overdue), Doubtful (more than 12 months overdue), and Loss assets (non-recoverable loans).

Impact on Economy:
High NPAs lead to reduced credit availability, as banks and financial institutions become more cautious about lending. This hampers economic growth and can lead to higher interest rates for borrowers.

Conclusion:
The rising gold loan NPAs highlight the need for better regulation and borrower education to manage financial risks, particularly in challenging economic conditions.

“THE RACE FOR FIGHTERS: THE IAF’S DILEMMA”

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: INDIAN EXPRESS

India’s Air Force (IAF) faces challenges in modernizing its fleet, lagging behind nations like China and the U.S. in advanced fighter jet capabilities, while struggling to maintain the required squadron strength.

China’s Advancements in Fighter Jets

• China recently showcased two advanced stealth fighter jets in tail-less configurations, potentially sixth-generation, though this remains debated.
• A larger delta-wing design with three engines for long-range missions, developed by Chengdu Aircraft Corporation.

• A smaller twin-engine jet with swept wings, designed by Shenyang Aircraft Corporation.

The People’s Liberation Army Air Force (PLAAF):

• Operates two fifth-generation fighters, J-20 and J-35, making China the only nation apart from the U.S. with more than one fifth-generation fighter.
• Transitioning rapidly to fourth-generation-plus aircraft, with over 1,300 fighters out of a total fleet of 1,900.

IAF’s Current Status

India has 31 fighter squadrons, significantly below the sanctioned strength of 42.

Key developments in progress:

• Light Combat Aircraft (LCA)-Mk1A: 83 units ordered, but deliveries delayed due to supply chain disruptions for GE-404 engines.
• LCA-Mk2 and Advanced Medium Combat Aircraft (AMCA): Expected after 2030.
• Multi-Role Fighter Aircraft (MRFA): Procurement of 114 jets delayed, with no government approval yet.

Challenges and Delays

• Dependence on imported engines: Indigenous aircraft and helicopters rely on co-manufactured or imported engines, such as the GE-414 for AMCA-Mk2. Lack of in-house aero-engine development hampers self-reliance.
• Phasing out older fleets: MIG-21 squadrons extended due to delays in LCA deliveries. By 2040, Jaguars, Mirage-2000s, MIG-29s, and early Sukhoi-30s will be retired.
• MRFA jets may not join the fleet before the mid-2030s due to prolonged approval and manufacturing timelines.

Way Forward

• Accelerate indigenous fighter jet development and production.
• Ensure timely procurement and manufacturing of key platforms like LCA-Mk1A, LCA-Mk2, and MRFA.
• Focus on developing a fully indigenous aero-engine to achieve self-reliance in defence.

Conclusion:
India’s modernization of its air force is essential to maintain strategic balance, but delays and dependencies must be addressed to ensure timely progress.

GAS PRICE RISE AND TRUMP’S EXPECTED POLICIES

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

The City Gas Distribution (CGD) sector is facing challenges due to rising gas costs, which could accelerate consolidation within the industry. This has implications for both small players and public sector undertakings (PSUs).

Impact of Rising Gas Prices on CGD Sector

• The reduction in the allocation of gas under the Administered Price Mechanism (APM) has forced CGD players to rely on more expensive alternatives like High-Pressure High-Temperature (HPHT) gas and imported Regasified Liquefied Natural Gas (RLNG).
• The cost of these alternative gases is significantly higher—1.5 to 2 times the cost of APM gas—leading to an increase of Rs 5 per standard cubic meter (scm) or Rs 7 per kg in gas prices.

Consequences for Key Segments

• D-PNG and CNG: These segments make up about two-thirds of the sector’s volume and will face reduced profitability. The CNG segment is also losing its competitive edge over diesel in commercial vehicle segments, especially with the possibility of a price cut in diesel due to expected pro-drilling policies in the U.S.
• Three-Wheelers: There is a decline in new registrations for CNG vehicles, while electric buses are gaining popularity due to the PM e-Bus scheme.

Challenges for Smaller Players

• Smaller CGD companies, particularly those lacking strong financial backing, are likely to struggle with increased gas prices and high capital expenditure. Many of these entities could become acquisition targets.

Consolidation Likely

• Larger players, with more robust balance sheets and competitive pricing on gas procurement, are better positioned to withstand these challenges.
• The sector is expected to experience increased consolidation, especially with smaller entities and PSUs facing financial constraints and higher reliance on debt.

Conclusion
The rise in gas prices, combined with shifting market dynamics, is pushing the CGD sector towards consolidation, impacting smaller players and PSUs more significantly.

SPADEX MISSION MARKS A MILESTONE FOR ISRO’S SPACE CAPABILITIES

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU

On January 1, 2025, ISRO launched its SpaDeX mission, which aims to demonstrate India’s space docking capability. This mission is critical for the future development of space infrastructure, such as the Bharatiya Antariksh Station (BAS) and lunar sample return missions.

ISRO’s 2024 Achievements:

• The SpaDeX mission is one of ISRO’s significant projects of 2024, highlighting its advancements in space technology.
• The PSLV-C60 rocket successfully launched two small satellites, SDX01 Chaser and SDX02 Target, into lower Earth orbit.

Importance of the SpaDeX Mission:

• SpaDeX will enable India to join an elite group of countries (Russia, the US, and China) with the capability for space docking.
• The mission’s success is crucial for future endeavors such as the establishment of the Bharatiya Antariksh Station (BAS), the Chandrayaan-4 mission, and human space exploration.

Docking Procedure:

• The Chaser satellite will approach the Target satellite in stages, progressively reducing the distance from 20 km to 3 meters before docking.
• After docking, the satellites will transfer electrical power and separate for independent operations over the next two years.

Future Space Missions:

• Bharatiya Antariksh Station (BAS): The docking capability will be vital for building a space station, with the first module launch planned for 2028.
• Chandrayaan-4: The docking feature will enable the re-entry module to connect with the lunar sample transfer module for safe re-entry to Earth.

Technological Experiments:

• The POEM (PS4 Orbital Experiment Module) will demonstrate 24 new technologies, including those from start-ups and educational institutions.
• Biological and robotic experiments, such as the CROPS experiment for plant studies and a robotic arm for debris capture, will be conducted in space.

National Space Day:

• India celebrated National Space Day to mark the success of Chandrayaan-3, which achieved a soft landing on the Moon, solidifying India’s position in space exploration.

Conclusion:
The SpaDeX mission represents a major leap forward for ISRO, reinforcing India’s capabilities in space technology and positioning it for more ambitious future missions.

CHALLENGES AND SETBACKS IN UN ENVIRONMENTAL SUMMITS OF 2024

TOPIC: (GS3) ENVIRONMENT: THE HINDU

In 2024, four major United Nations environmental summits—on biodiversity, climate change, land degradation, and plastic pollution—failed to deliver meaningful results. These shortcomings highlight the challenges in reaching global consensus on urgent environmental issues.

Failures at Key UN Environmental Summits

• Limited Progress: The summits held in Colombia, Azerbaijan, Saudi Arabia, and South Korea struggled to achieve their goals of setting global targets, ensuring accountability, and mobilizing financial support.
• Key Issues Unaddressed: Critical issues such as biodiversity loss, climate finance, drought management, and plastic pollution were left unresolved, particularly affecting vulnerable countries.

Diverging National Interests

• Developing vs. Developed Countries: A major factor behind the failures is the division between developed and developing nations. Developing countries seek increased financial and technological support, while developed countries are hesitant due to their own economic constraints.
• Stalemates at Key Meetings:
  • In Colombia, discussions on a $700 billion annual funding requirement for biodiversity conservation ended in gridlock.
  • In Azerbaijan, a demand for $1.3 trillion in climate finance was met with only vague commitments from developed nations.
  • In South Korea, talks on creating a legally binding treaty for plastic pollution faltered due to opposition from countries reliant on plastic industries.

Challenges from Global Crises

• Pandemic and Geopolitical Conflicts: The COVID-19 pandemic and ongoing geopolitical tensions diverted attention from environmental priorities, affecting the effectiveness of the summits.
• Economic Strain: Many developing countries are facing economic challenges, including inflation and debt, which weakens their negotiating positions.

Implications of Failed Negotiations

• Delayed Action: The inability to reach agreements puts urgent environmental actions at risk, leading to potential irreversible consequences.
• Erosion of Trust: Repeated failures diminish trust in multilateral processes, complicating future negotiations.

Strategies for Rebuilding Momentum

• Financial Commitments: Developed countries must honor their financial and technological promises to support developing nations.
• Transparency and Accountability: Clear mechanisms to monitor progress are essential for restoring trust and ensuring follow-through on pledges.
• Integrated Solutions: A comprehensive approach that connects issues like climate change, biodiversity, and plastic pollution is crucial for effective action.

Conclusion
Addressing global environmental crises requires collective and sustained efforts. Nations must prioritize long-term solutions over short-term interests for a sustainable future.

THE END OF RUSSIAN GAS TRANSIT THROUGH UKRAINE AND ITS GLOBAL IMPLICATIONS

TOPIC: (GS2) INTERNATIONAL RELATIONS: INDIAN EXPRESS

On January 1, 2025, Russia ceased its natural gas exports through Ukraine, marking the end of a longstanding energy route to Europe. This shift is driven by geopolitical tensions and Europe’s increasing efforts to diversify energy sources.

Historical Context:

• Russian gas transit through Ukraine has been vital for European energy, with its importance diminishing after the 2014 Crimea annexation.
• Ukraine stopped direct gas imports from Russia in 2015, further straining relations.

Financial Implications:

• Ukraine faces a significant financial loss, estimated at $800 million annually in transit fees.
• Russia’s state-owned Gazprom may lose up to $5 billion due to the stoppage.
• Russia’s market share in Europe, once at 35%, has sharply declined as Europe diversifies its energy sources, especially since the 2022 conflict.

Changing European Energy Landscape:

• The European Union has found alternative energy sources for nations like Slovakia and Austria, reducing dependence on Russian gas.
• However, countries such as Moldova, highly dependent on Russian gas, are facing energy shortages and austerity measures.
• Other Russian export pipelines like Yamal-Europe and Nord Stream are also inactive, leaving TurkStream as Russia’s primary export route.

Decline in Gas Transit:

• Russian gas exports through Ukraine dropped from 65 billion cubic meters (bcm) in 2020 to 15 bcm in 2023.
• The cessation signifies the collapse of a 50-year energy partnership, with severe economic and strategic repercussions.

Strategic Importance of Pipelines:

• For Europe: Pipelines provided a reliable, affordable gas supply for heating, industry, and power, crucial for stabilizing prices.
• For Russia: Energy revenues constitute a significant portion of its budget (around 40%).
• Geopolitical Influence: Control over gas supply gives Russia leverage in European energy markets, strengthening its geopolitical position.

Conclusion:
The halt in Russian gas transit through Ukraine signals a pivotal change in Europe’s energy framework and underscores the deepening geopolitical divide, challenging both Russia and Europe to adapt to new energy realities.