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23-January-2025-Daily-Current-Affairs

January 23 @ 7:00 am - 11:30 pm

INDIA’S OIL DEMAND TO REACH NEW HIGHS IN 2025-26

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

India’s demand for refined petroleum products is projected to hit a record high in FY26, driven by increasing energy requirements across various sectors. This growth underscores the country’s economic expansion and energy-intensive development.

Record Petroleum Consumption in FY26

  • India’s petroleum consumption is projected to rise by 4.7% over FY25 estimates.
  • Expected consumption: 252.93 million tonnes, up from 241.68 million tonnes in FY25.

Major Drivers of Growth

  • Growth expected in petrol, diesel, aviation turbine fuel (ATF), liquefied petroleum gas (LPG), and petroleum coke.
  • Transportation and Industrial Activity: Key contributors to increasing demand.
  • Aviation: ATF demand to grow by nearly 10%, supported by rapid expansion in the civil aviation sector.
  • Pet coke: Industrial use in power, cement, and steel sectors to drive 10% growth to 85 million tonnes.

Recovery Trends and Historical Growth

  • India’s petroleum consumption faced a dip during FY21 due to the pandemic.
  • Post-pandemic recovery led to consumption surpassing pre-COVID levels, with FY23 reaching 241.68 million tonnes.

India’s Strategic Role in Global Oil Demand

  • Growing energy-intensive industries and vehicle sales position India as a global growth driver.
  • Low per-capita energy consumption compared to developed nations indicates room for growth.
  • Current capacity: 257 million tonnes per annum, with further expansions planned to meet demand.
  • India is expected to lead global oil demand growth, overtaking China due to structural and demographic changes in the latter.

Challenges of Rising Import Dependency

  • India imports over 85% of its crude oil, making it the third-largest global consumer.
  • Import reliance poses economic and strategic risks.

What Can Be Done to Reduce Oil Import Dependency?

  • Expand India’s own exploration and production capabilities, both domestically and overseas, similar to China’s approach.
  • Invest in renewable energy to diversify the energy mix and reduce dependency on fossil fuels.
  • With growing power demand, focusing on solar, wind, and other green sources is essential.

Conclusion

India’s increasing oil demand reflects its economic growth but also highlights challenges of import dependency and sustainability. Strengthening domestic production, leveraging renewable energy, and addressing environmental concerns are key to ensuring energy security and resilience.

Practice Question:

  1. With reference to “West Texas Intermediate (WTI),” consider the following statements:
  1. WTI is a type of crude oil that is characterized by its high sulfur content.
  2. It is primarily used as a global benchmark for crude oil pricing.
  3. WTI is predominantly extracted from oil fields located in the Middle East.

Which of the statements given above is/are correct?

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

Answer: B

Explanation:

  • WTI is known for its low sulphur content, making it a “sweet” crude oil.
  • WTI is a global benchmark for crude oil pricing, particularly in the United States.
  • WTI is primarily sourced from oil fields in the United States, not the Middle East.

MINIMUM SUPPORT PRICE (MSP) FOR RAW JUTE FOR THE 2025-26 SEASON

TOPIC: (GS3) ECONOMY: THE HINDU

The Union Cabinet has approved a hike in the Minimum Support Price (MSP) for raw jute for the 2025-26 season, setting it at ₹5,650 per quintal. This decision aims to ensure fair remuneration for jute farmers and promote agricultural growth in the sector.

What is MSP?

  • Definition: MSP is the minimum price guaranteed by the Government of India to farmers for their crops, ensuring they receive fair compensation regardless of market fluctuations.
  • Purpose: It acts as a safety net to stabilize farmers’ incomes and protects them from price volatility.
  • Crops Covered: MSP is announced annually for 22 crops, including cereals, pulses, oilseeds, and commercial crops like raw jute.

Determination of MSP

The Commission for Agricultural Costs and Prices (CACP) recommends MSP based on:

  • Cost of production.
  • Market trends.
  • Input from state governments and central ministries.

Crops Covered Under MSP

  • Kharif Crops: Paddy, jowar, bajra, ragi, maize, pulses (tur, moong, urad), and oilseeds (groundnut, sunflower, soybean, sesamum, Niger seed, and cotton).
  • Rabi Crops: Wheat, barley, gram, lentils (masur), mustard, rapeseed, and safflower.
  • Other Crops: Copra (milling and ball) and jute.

Significance of the MSP Hike for Raw Jute

  • Fair Remuneration: Encourages farmers to cultivate jute by ensuring adequate returns.
  • Support for the Industry: Benefits industries relying on jute for packaging and other uses.
  • Rural Development: Contributes to economic stability in rural areas dependent on jute farming.

Conclusion

The increase in MSP for raw jute underscores the government’s commitment to supporting farmers, fostering agricultural sustainability, and boosting rural livelihoods.

Practice Question:

  1. Which of the following statements about Minimum Support Price (MSP) is/are correct?
  1. MSP is a price set by the government to ensure that farmers receive a fair and stable income for their crops.
  2. The Commission for Agricultural Costs and Prices (CACP) is responsible for fixing the MSP for 22 agricultural crops annually.
  3. MSP is applicable only to Kharif crops and does not cover Rabi or other crops.
  4. The government procures all crops at the MSP level to ensure the price stability in the market.

Select the correct answer using the code given below:

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

Answer: B

Explanation:

  • MSP is designed to protect farmers from price fluctuations and ensure they receive a fair income.
  • The CACP recommends MSP for 22 crops, which includes Kharif, Rabi, and other crops.
  • MSP is applicable to both Kharif and Rabi crops, as well as some other crops like jute and copra.
  • While the government announces MSP, it does not necessarily procure all crops at this price level. It is up to the market conditions and procurement mechanisms.

DISCOVERY OF A RULE-BREAKING BLACK HOLE (LID-568)

TOPIC: (GS3) SEIENCE AND TECHNOLOGY: THE HINDU

NASA’s James Webb Space Telescope (JWST) and Chandra X-ray Observatory have discovered a unique black hole, LID-568, which provides new insights into the growth of supermassive black holes in the early universe.

Key Discovery

  • LID-568 is a low-mass supermassive black hole discovered in a galaxy that existed just 1.5 billion years after the Big Bang.
  • This black hole challenges conventional models of black hole growth by exhibiting an exceptionally high accretion rate.

Eddington Limit and Accretion Rate

  • The Eddington Limit refers to the maximum rate at which a black hole can attract matter. It occurs when the outward radiation pressure equals the inward gravitational pull.
  • LID-568 exceeds this limit by 40 times, which is known as super-Eddington behavior.
  • When this limit is surpassed, the black hole emits powerful radiation, which could affect its surroundings.

Implications for Black Hole Formation

  • This finding presents a challenge to existing models of black hole formation.
  • It suggests that supermassive black holes may have grown rapidly in their early stages, possibly accumulating mass much faster than previously thought.
  • Jets and Accretion Disks: The discovery implies that the presence of high-speed jets and intense accretion disks could help explain this rapid growth.

Future Research

  • Further studies are necessary to understand how black holes like LID-568 can exceed the Eddington limit.
  • Researchers plan to observe other galaxies with similar black holes to verify these findings and determine their long-term consequences for black hole theory.

Conclusion:

LID-568’s unique characteristics offer new insights into how supermassive black holes could form rapidly in the early universe, challenging established theories of black hole growth.

Practice Question:

  1. Consider the following statements about black holes:
  1. A black hole is formed when a massive star collapses under its own gravity.
  2. The Event Horizon of a black hole is the region beyond which nothing, not even light, can escape.
  3. The Eddington limit refers to the maximum mass a black hole can have before it starts emitting radiation.

Which of the above statements is/are correct?

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

Answer: A

Explanation:

  • A black hole is formed when a massive star collapses under its own gravity after exhausting its nuclear fuel.
  • The Event Horizon is the boundary of a black hole beyond which nothing, not even light, can escape.
  • The Eddington limit refers to the maximum rate at which a black hole can pull in matter, not its mass. It is the balance between the inward gravitational pull and the outward pressure from the radiation emitted by the matter falling into the black hole.

INDIA’S CRITICAL MINERALS PUSH: RECASTING EFFORTS AMID CHINA’S MOVES

TOPIC: (GS3) ECONOMY: THE HINDU

China’s recent restrictions on critical mineral exports underscore the global importance of securing these essential resources. For India, enhancing domestic production and exploration of critical minerals is vital to reduce dependence and support high-tech industries.

China’s Strategy on Critical Minerals

  • China recently expanded its export controls, targeting U.S. entities and restricting materials like tungsten, gallium, magnesium, and lithium-6.
  • These minerals are critical for semiconductors, aerospace, batteries, and advanced electronics.
  • Beijing’s approach is calculated, avoiding disruptions to its own industries or minerals reliant on Western imports.
  • Past examples include the rare earth embargo against Japan in 2010 and recent restrictions on antimony, gallium, and germanium.

India’s Challenges in Critical Minerals Development

  • India discovered significant lithium reserves in Jammu and Kashmir in 2023, but these remain untapped due to lack of investor interest.
  • Only 48% of auctioned mineral blocks have been allocated in recent years.
  • Issues include outdated resource classifications and insufficient geological data, deterring private and foreign investment.

Government Initiatives and Reforms

  • The government identified 30 critical minerals vital for national security.
  • Established Khanij Bidesh India Ltd. (KABIL) to secure overseas critical mineral investments.
  • Amended the Mines and Minerals (Development and Regulation) Act, 2023, to remove restrictive classifications and encourage private-sector participation.

Exploration Licenses:

  • Introduced exploration licenses allowing specialized agencies to survey without committing to full-scale mining.
  • Promised reimbursement of 50% of exploration expenses after production begins.

Current Results and Challenges

  • Few exploration licenses have been issued, mostly to public sector firms, with minimal foreign participation.
  • Many mineral blocks lack advanced exploration data, making them high-risk for investors.
  • Low demand for exploration licenses persists despite reforms aimed at de-risking early-stage investments.

Way Forward: Fiscal Incentives and Robust Data

  • High-quality geological surveys are crucial to reduce uncertainty and attract bidders.
  • Larger upfront fiscal incentives for exploration, akin to India’s semiconductor policy, could offset early costs and encourage participation.
  • Strengthening exploration efforts will unlock downstream value in mining, exports, and technology.

Conclusion
India must address structural issues in its mineral exploration sector with robust incentives and better data. This is crucial to ensure resource security and reduce dependence on imports, particularly amid rising global competition for critical minerals.

U.S.’S NEW RULE FOR EXPORTING AI CHIPS

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

The U.S. has introduced new export rules for Artificial Intelligence (AI) chips, aiming to control their global circulation for national security and policy reasons. This tiered framework categorizes countries and sets specific conditions for licensing and exporting AI technologies.

Key Features of the New Regulations

Technology Covered

  • Targets advanced computing chips and closed AI model weights.
  • AI models process data using mathematical operations to generate outputs like information, analysis, or media.

Tiered Framework for Countries

  • Tier 1: Includes 18 allies like Australia, the U.K., and Japan; no restrictions on exports.
  • Tier 2: Includes India and China; applies volume caps, specifications, and licensing for AI chip exports.
  • Tier 3: Arms-embargoed countries (e.g., North Korea, Russia) are prohibited from accessing the technology.

Key Objectives

  • Prevent adversaries from acquiring AI technologies that could enhance military and cyber capabilities.
  • Protect advanced AI systems from misuse, including the development of weapons or mass surveillance.

Concerns Raised

  • Impact on U.S. Competitiveness: Industry leaders like NVIDIA argue that the rules may hinder innovation in the U.S. and affect global leadership in AI technology.
  • Critics highlight that non-U.S. suppliers, such as Huawei and Tencent, could fill the void at competitive prices.
  • Concerns Over Chinese Companies: BIS raised concerns about Chinese firms using foreign subsidiaries to acquire chips in uncontrolled destinations.

Impact on India

  • Indian data centres may need Validated End User (VEU) authorization to deploy advanced AI chips faster.
  • India’s exclusion from the trusted allies list could be linked to concerns over chip leakages to Russia.
  • Overall, the impact on India is expected to be limited, with no significant restrictions on civilian and military applications.

Conclusion

The U.S.’s new AI chip export rules aim to secure its technology leadership and mitigate risks of misuse. While the rules pose challenges for tech industries globally, their impact on India appears to be moderate.

DOING BUSINESS WITH TRUMP: IMPACT ON GLOBAL TRADE AND INDIA

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

President Donald Trump’s “America First” trade policies reshaped global trade, focusing on fair practices, supply chain reforms, and trade deficits. This shift posed challenges and opportunities for India amidst evolving U.S. trade dynamics.

Key Features of “America First” Trade Policy

Focus on China and North America

  • The policy targeted China’s unfair trade practices and non-market policies.
  • North American neighbours like Mexico and Canada saw opportunities for reciprocal trade negotiations.
  • Despite initial apprehensions, Trump’s policies encouraged dialogue with global partners.

Reforms for Supply Chain Traceability

  • Emphasized addressing China’s exploitation of third-party countries for economic gain.
  • Proposed changes to trade regulations (Articles 301 and 201) to ensure transparent and accountable trade.
  • Recommended integrating efforts across Treasury, Commerce, and Homeland Security for efficient enforcement of trade rules.

Implications for India

Risks of Market Diversion and Dumping

  • The U.S.-China trade war could lead to Chinese goods flooding Indian markets, disrupting local industries.
  • India faces potential challenges in sustaining exports to developing regions.

Dependency on H-1B Visas

  • India relies heavily on H-1B visas for its dominance in the U.S. services sector.
  • Traditional service models like BPOs face declining relevance; diversification into professional services and emerging areas is critical.

Strengthening Bilateral Ties

  • India seeks to simplify the H-1B visa process and expand quotas for students.
  • Collaborations in artificial intelligence, synthetic biology, and other advanced sectors offer growth potential.
  • Regular dialogue can help resolve immediate challenges and foster long-term partnerships.

Challenges and Opportunities in Trade Relations

U.S. Trade Deficit

  • The U.S. trade deficit in 2023 stood at $1.05 trillion, with China contributing 30%.
  • India ranked ninth, with a surplus of $33 billion, reflecting a mixed trade balance.
  • Addressing trade imbalances requires a sector-wise analysis and balanced policies.

Indo-Pacific Economic Framework (IPEF)

  • India’s focus on supply chains, clean energy, and anti-corruption under the IPEF highlights its commitment to deeper trade cooperation.
  • A well-structured free trade agreement between India and the U.S. could bolster economic resilience and shared goals.

Strategic Priorities for India

  • Defence and Border Security: Modernize military capabilities and enhance counterterrorism efforts.
  • Energy Security: Diversify energy sources with an emphasis on renewables.
  • Economic Stability: Promote peace in South Asia while countering China and Pakistan’s destabilizing actions.
  • Technological Advancement: Invest in digital transformation, artificial intelligence, and cybersecurity.
  • Soft Power Diplomacy: Strengthen democracy and engage with the Indian diaspora.

Conclusion

Trump’s policies altered global trade, offering challenges and opportunities for India. Strengthening bilateral ties, addressing trade imbalances, and focusing on strategic priorities can help India navigate these complexities and achieve long-term economic growth.

CROSSPATHY IN HEALTHCARE: BALANCING SAFETY AND ACCESS

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Maharashtra FDA’s decision to allow qualified homeopathic practitioners to prescribe allopathic medicines has sparked debates about patient safety and healthcare regulation. This raises questions about the risks and benefits of crosspathy in India’s healthcare system.

Legal and Regulatory Background

2017 Notification:

  • Maharashtra allowed certain homeopathic practitioners with specific qualifications to practice allopathy.
  • This was challenged by the Indian Medical Association (IMA) in the Bombay High Court.
  • The court stayed the order, citing patient safety concerns.

2023 FDA Directive:

  • Permits homeopaths with a pharmacology certificate to prescribe allopathic drugs.
  • The IMA clarified that this directive conflicts with the High Court stay and central regulations.

About Crosspathy

  • Definition: Crosspathy refers to practitioners of one medical system prescribing treatments from another, such as homeopaths prescribing allopathic drugs.
  • Supreme Court Rulings: In the 1996 Poonam Verma vs. Ashwin Patel case, the Court deemed crosspathy as negligence unless explicitly authorized.

Concerns Over Crosspathy

  • Patient Safety Risks: Lack of expertise in another medical system may lead to misdiagnosis and inappropriate treatments.
  • Drug Interactions: Combining treatments from different systems may cause harmful side effects or interactions.
  • Ethical Issues: Practicing outside one’s qualification undermines ethical medical care standards.
  • Regulatory Gaps: Absence of clear regulations leads to confusion and potential malpractice.

Healthcare Challenges in India

  • Doctor Shortage: India has 13 lakh allopathic doctors and 5.65 lakh AYUSH practitioners, but rural areas face a severe shortage of specialists.
  • Role of Mid-Level Providers: Experts advocate for structured roles for mid-level providers to bridge healthcare gaps without compromising quality.

Conclusion

India’s healthcare system must prioritize patient safety through clear regulations and structured integration of alternative practitioners. While addressing the doctor shortage is essential, crosspathy without robust guidelines risks mismanagement and harm.

NATIONAL HEALTH MISSION: ACHIEVEMENTS AND IMPACT

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The National Health Mission (NHM) has played a key role in enhancing India’s public healthcare system, achieving significant progress in reducing maternal and infant mortality rates, tackling diseases like TB, and increasing healthcare resources.

Key Achievements of the NHM

Strengthening Human Resources in Healthcare

  • Engaged 2.69 lakh healthcare workers in FY 2021-22, including medical officers, specialists, staff nurses, AYUSH doctors, and public health managers.
  • Recruited 90,740 community health officers (CHOs) in 2021-22, which increased to 1.29 lakh in 2022-23 and 1.38 lakh in 2023-24.
  • A total of 5.23 lakh healthcare professionals were added in FY 2023-24.

Improved Maternal and Child Health

  • Maternal Mortality Ratio (MMR) dropped by 83% since 1990, surpassing the global reduction of 45%.
  • Infant Mortality Rate (IMR) decreased from 39 per 1,000 live births in 2014 to 28 per 1,000 live births in 2020.
  • Total Fertility Rate (TFR) reduced from 2.3 in 2015 to 2.0 in 2020, according to NFHS-5.

Progress Towards Sustainable Development Goals (SDGs)

  • India is on track to achieve the U.N. SDG targets for maternal, child, and infant mortality well before 2030.

Disease Control and Elimination

  • NHM has effectively managed and controlled diseases like tuberculosis and sickle cell anaemia.
  • Played a critical role in responding to health emergencies with an integrated approach.

NATIONAL HEALTH MISSION (NHM)

The National Health Mission (NHM), launched in 2005 by the Ministry of Health and Family Welfare, aims to strengthen healthcare delivery across India with a focus on rural and urban areas.

Key Objectives

  • Improve healthcare access, particularly for women, children, and vulnerable populations.
  • Focus on reducing maternal and child mortality.
  • Combat communicable diseases like tuberculosis, malaria, and leprosy.

Major Components

Reproductive, Maternal, Newborn, Child, and Adolescent Health (RMNCH+A):

  • Reduce maternal and child mortality rates.
  • Provide essential healthcare services for adolescents.

Health System Strengthening:

  • Develop better health infrastructure.
  • Enhance human resources in healthcare.

National Disease Control Programs:

  • Address widespread diseases like TB, malaria, and leprosy through targeted programs.

AYUSH Integration:

  • Promote traditional medicine for a more holistic healthcare approach.

Key Initiatives

  • Janani Suraksha Yojana (JSY): Financial assistance for safe motherhood.
  • ASHA Workers: Accredited Social Health Activists act as community health facilitators.
  • Village Health Committees: Promote local health planning and monitoring.

Conclusion

The NHM has significantly improved India’s healthcare outcomes through enhanced infrastructure, reduced mortality rates, and disease control efforts. Its achievements reflect steady progress toward meeting global health targets.

Details

Date:
January 23
Time:
7:00 am - 11:30 pm
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