GS Analyst: Daily Current Affairs

Fears of a global trade war have risen after Donald Trump threatened to impose 100% tariffs on countries in the Brics group if they create a new currency to rival the US dollar. The warning came less than a week after Trump declared he would impose tariffs on Canada, Mexico and China once he was inaugurated as president.

Where BRICS’s ‘de-dollarisation’ call is leading?

• The Brics group was originally made up of Brazil, Russia, India, China and South Africa and has been joined by Egypt, the United Arab Emirates, Ethiopia and Iran.
  • Turkey, Azerbaijan and Malaysia have applied to become members, and several other countries have expressed interest in joining.
• Some Brics members have shown interest in de-dollarising the world economy. In October, Vladimir Putin called for an alternative international payments systemthat could prevent the US from using the dollar as a political weapon. Others, though, fear the consequences of severing relations with the US and other western countries by breaking away from the dollar, which underpins world finance.
• While the U.S. dollar is by far the most-used currency in global business and has survived past challenges to its pre-eminence, members of the alliance and other developing nations say they are fed up with America’s dominance of the global financial system.

What gives the US dollar the power in international trade?

• The U.S. dollar is not forced on anyone to be accepted as a medium of exchange for cross-border transactions.
• It is widely used in international transactions because people actually prefer to use American currency over others for various economic reasons.
• Other currencies that have tried to compete against the U.S. dollar are not as popular as the greenback for carrying out international transactions.
• The global acceptability of the U.S. dollar has primarily been attributed to the
• the popularity of U.S. assets among investors
• high level of trust of global investors in the US

India's Pursuit of De-dollarisation:

India, as a BRICS member, is challenging traditional financial systems through de-dollarisation efforts.

• Shift in Trade Dynamics:Increased trade in local currencies, like the Indian Rupee, grants India more control over monetary policy and shields it from external shocks.
• Monetary Policy Autonomy:Reduced reliance on the U.S. dollar empowers India to set independent monetary policies, enhancing economic stability.
• Enhanced Trade Relations:Trade in local currencies fosters stronger economic ties, streamlines transactions, and reduces costs.
• Strengthened Indian Rupee: De-dollarisation can lead to a stronger rupee, boosting purchasing power and reducing inflationary pressures.
• Economic Independence: By diversifying away from the dollar, India reduces vulnerability to U.S.-led sanctions, enhancing economic independence.

Impact of 100% tariff

• A 100% tariff at the US border, if implemented, would drive up sharply the cost of goods from Brics members, fuelling US inflation and destabilising global trade flows.
• This hardline approach on trade reflects Trump’s broader ‘America First’ economic policy, which aims to recalibrate global trade dynamics and reinforce US economic sovereignty.

In recent weeks, there have been growing concerns over the violation of religious minority rights in Bangladesh. This includes the desecration of Hindu temples and the arrest of Hindu monk Chinmoy Krishna Das on charges of sedition.

Bangladesh’s Constitutional Promises

• The Constitution of Bangladesh, adopted in 1972, promises secularism, democracy, and equal rights for all religious communities. It establishes that Bangladesh is not based on religion but on the secular idea of "Bangla" nationalism. The Constitution enshrines several fundamental rights, including religious freedom and the right to practice one's religion without discrimination.
  • Secularism and Equal Rights: The preamble of Bangladesh’s Constitution mentions secularism, democracy, socialism, and nationalism as its core principles. Secularism was initially a part of the Constitution but was removed during military rule in the 1970s. However, it was reinstated in 2011.
  • Religious Freedom: The Constitution guarantees freedom of religion (Article 41), meaning citizens can practice, propagate, and manage their religious affairs. It also prohibits discrimination based on religion, as stated in Article 28, which mirrors India’s Constitution (Article 15) in prohibiting religious discrimination in public spaces.
• Despite these provisions, the treatment of religious minorities in Bangladesh, especially Hindus, has come under scrutiny due to recent events.

The Role of Islam in Bangladesh's Constitution

Although Bangladesh’s Constitution originally embraced secularism, it later underwent changes that brought Islam into a more prominent position.

• Islam as State Religion: In 1977, General Ziaur Rahman amended the Constitution to declare Islam as the state religion, although religious freedom was still allowed. Later, in 1988, General Ershad inserted Article 2A, explicitly stating that Islam is the state religion. However, the Constitution also promises equal rights for Hindus, Buddhists, and Christians, which creates a contradiction in the document.
• Secularism Restored: In 2011, following a court ruling, secularism was reinserted into the Constitution through the 15th amendment. The amendment removed certain religious references but retained others to maintain a balance between secularism and respect for Islam.

This duality of secularism with Islam as the state religion has led to tensions, especially in the treatment of religious minorities in practice.

What Needs to Change?

For Bangladesh to fulfill its constitutional promises and ensure the safety of its minority communities, immediate steps are necessary:

• Strengthen Legal Protections: The Bangladesh government must act swiftly to protect religious minorities from violence and discrimination. This includes implementing stronger legal measures and ensuring that offenders are held accountable.
• Uphold Secularism: The government must reaffirm its commitment to secularism and prevent any religious-based discrimination from taking root in society. It should also ensure that the principle of secularism is effectively enforced, as guaranteed by the Constitution.
• Promote Tolerance and Inclusivity: Bangladesh needs to foster a culture of tolerance and inclusivity, ensuring that all religious communities, regardless of their size or influence, are treated equally and with respect.
• International Support and Pressure: As a neighbor and regional partner, India has the right to express concern over the violation of human rights and minority rights in Bangladesh. International human rights organizations and global diplomatic bodies must also pressure Bangladesh to uphold its commitments to minority protection.

The Indian government is planning to release a national policy document focused on improving female labour force participation (FLFP). This policy initiative comes after findings from a World Bank report, which highlighted a significant drop in female employment rates post-marriage. The government aims to address this issue by improving the care economy and creating an enabling environment for women to participate more actively in the workforce.

What is the Care Economy?

• The care economy refers to a sector that involves both paid and unpaid care activities.
• These include direct care activities like feeding babies, as well as indirect care such as cooking, cleaning, healthcare, and education.
• The government’s policy will focus on developing this sector to create a more supportive environment for women, especially those who face barriers due to caregiving responsibilities.
• Why is This Important? A major concern is that married women in India face a sharp drop in labour force participation. The World Bank report reveals that after marriage, women’s employment rates drop by 12 percentage points, which is about one-third of their pre-marital employment rate. This drop happens even when women do not have children, indicating that marriage itself is a major factor in reducing female participation in the workforce.
• Existing Schemes to Support Female Workers: The Ministry of Women and Child Development already runs the ‘Palna’ scheme, which provides daycare facilities for the children of working parents.
• The scheme is aimed at children aged 6 months to 6 years and provides various services, including:
  • Nutritional support
  • Health monitoring
  • Cognitive development
  • Immunisation
  • Education
• As of now, 1,000 Anganwadi creches have been operational under this scheme. These creches aim to create a safe environment for children, allowing women to participate in the labour market without worrying about their children’s wellbeing.

Rural vs Urban Female Labour Force Participation

• Women’s participation in India’s workforce has seen a remarkable rise in recent years, according to the latest Annual Periodic Labour Force Survey (PLFS) reports.
  • The Worker Population Ratio (WPR) and Labour Force Participation Rate (LFPR) for women aged 15 years and above have steadily increased from 22.0% and 23.3% respectively in 2017-18 to 40.3% and 41.7% in 2023-24.
• According to the Union Labour Ministry data for 2021-2022, the female labour force participation rate is higher in rural areas compared to urban areas. The data shows:
  • In rural areas, 6% of women aged 15 years and above are part of the labour force.
  • In urban areas, this figure is much lower at 8%.
• This difference suggests that women in rural areas are more likely to be involved in economic activities, although these jobs may often be informal or low-paying.
• This disparity also highlights the need for more structured support systems, especially in urban areas, where women face different challenges related to employment.

India has become the sixth-largest chemical-producing country in the world. However, this growth has come with a rise in chemical accidents, particularly in the past few years. Despite significant industrial growth, safety regulations and transparency in chemical processes remain insufficient, raising serious concerns about public health and the environment.

Chemical Accidents in India (2020-2023)

• Between 2020 and 2023, 29 chemical accidents took place in India, leading to 118 deaths and around 257 injuries.
• These incidents, which included plant malfunctions, chemical leaks, explosions, and factory fires, underline the inadequacy of safety measures in the chemical industry.
• There is the lack of transparency due to the absence of a law governing trade secrets. In India, there is no dedicated law for trade secrets, and companies often use Non-Disclosure Agreements (NDAs) to shield information from public scrutiny, even if it poses environmental and health risks.
  • Trade secrets refer to proprietary information companies consider crucial to their competitive advantage.
• The issue has persisted despite the Bhopal Gas Tragedy of 1984, which remains one of the deadliest industrial disasters in history. 40 years later, safety regulations for chemical processes in India have not improved significantly.
• Continued Use of Hazardous Chemicals
  • Methyl isocyanate (MIC): Despite the Bhopal Gas Tragedy and the hazardous nature of chemicals involved, methyl isocyanate (MIC) is still used in India for the production of certain pesticides. It remains listed as a hazardous chemical under India’s regulations.
  • Asbestos and DDT are banned in other countries but still in use in India, such as asbestos and DDT. India has delayed banning it, with the latest phase-out deadline set for December 2024.
  • PFAS (Per- and Polyfluoroalkyl Substances), also known as ‘forever chemicals’, remain under-regulated in India. These chemicals, commonly found in non-stick cookware, food packaging, and water-resistant products, are linked to adverse health effects but remain poorly regulated in India, despite significant efforts being made in other countries to address their dangers.

Inadequate Regulation

• India's existing laws and regulations regarding chemicals are fragmented and often inadequate.
• Currently, there are 15 laws and 19 rules related to the chemical industry, but none are designed specifically to ensure comprehensive safety in the chemical sector.
• For instance, the Manufacture, Storage, and Import of Hazardous Chemicals Rules (1989) do not fully address the growing complexity of the industry.
• Meanwhile, the Chemical Management and Safety Rules are still in the draft stage and have not been finalized. This lack of regulatory clarity makes it difficult to address the challenges posed by hazardous chemicals effectively.
• Moreover, India does not have a system to register or track chemicals comprehensively, unlike other countries like the US (under the Toxic Substances Control Act) or the EU (under the REACH Regulation).
• The industry continues to push for trade secret protections under the Protection of Trade Secrets Bill, 2024, which would make it even harder to obtain information about hazardous chemicals. Critics argue that the bill would further shield industries from scrutiny, increasing the risk to public health and the environment.

Nagaland recently celebrated the 62nd Nagaland Statehood Day on December 1.

About

• The state was formed on December 1, 1963, and since then the day is annually celebrated as Nagaland Statehood Day.
• In 1957, Naga leaders and the central government reached an agreement to create a separate region of the Naga Hills. The State of Nagaland Act, 1962, was enacted by the Parliament to give Nagaland statehood.
• It was formally recognized as a separate state on December 1, 1963, with Kohima being declared its capital.

The North Eastern Tea Association (NETA) has raised concerns over the Central government's new mandate, requiring 100% of dust-grade tea to be sold exclusively through public auctions, set to take effect on April 1, 2024. NETA argues that this policy limits producer flexibility and could harm the diverse tea industry's operational needs.

What’s the issue?

• The Central government of India has introduced a new policy that mandates 100% of dust-grade tea produced in specific states, including Assam and other northeastern states, to be sold exclusively through public auctions.
• This policy is part of the Tea (Marketing) Control (Amendment) Order, 2024, and is set to come into effect on April 1, 2024.
• The North Eastern Tea Association (NETA), which represents tea producers in the region, has raised concerns about the policy, arguing that it restricts the freedom of producers to choose between public auctions and private sales, both of which have coexisted for over 150 years in the Indian tea industry.

NETA’s Opposition to the Mandate

• Freedom of Choice in Sales Mechanisms: Tea producers should have the autonomy to decide between selling through public auctions or private sales. A one-size-fits-all policy does not suit the diverse business models of tea producers in different regions. Some producers may find private sales more efficient based on their operations, while others may prefer public auctions.
• Inefficiencies in the Auction System:

• Extended Printing Times: In Sale No. 48 at the Guwahati auction, the printing time for results was extended to 28 days, instead of the usual 17 days.
• High Unsold Inventory: Around 40% of CTC (crush, tear, curl) teas remained unsold at the Guwahati auction due to factors like lot size and divisibility rules.
• Lot Size and Divisibility: NETA suggested that the minimum lot size for peak production months should be fixed at 20 bags (instead of the current rule of 30), and divisibility for lots exceeding 30 bags should be allowed.
• Impact on Diverse Business Models: There is need for flexibility in the tea sales mechanism, allowing producers to choose the most efficient model based on their unique business needs. Imposing a single, mandatory system would limit operational flexibility and could be detrimental to certain producers.

India is aiming to achieve its development goals by 2047, and science and technology play a pivotal role in this vision. As the country invests heavily in cutting-edge technologies like space, defence, semiconductors, and AI, a new challenge has emerged — research security. The need for safeguarding scientific research from threats like espionage, cyberattacks, and intellectual property theft is becoming increasingly critical in India’s rapidly advancing innovation ecosystem.

The Importance of Research Security

• Geopolitical Risks and Threats: The global landscape, with rising geopolitical tensions, has seen various instances of research security breaches. Notable cases include foreign interference in U.S. academic institutions, cyberattacks on COVID-19 vaccine research, and theft of sensitive data from European Space Agency labs. These incidents highlight the vulnerability of strategic research and the growing threats posed by adversarial actors.
• Global Policies on Research Security: Countries like the U.S. and Canada have developed comprehensive policies to safeguard sensitive research. For example, the S. CHIPS and Science Act addresses research security and the protection of critical technologies. Similarly, Canada has set up national guidelines for sensitive technology research, focusing on countries like China, Iran, and Russia. These frameworks aim to ensure the protection of national interests in a competitive global technological landscape.
• National Security Implications: India’s focus on advancing in technologies like AI, quantum computing, biotechnology, and defense needs robust research security measures. Any breach in the security of strategic research could delay technological progress, expose sensitive data to foreign actors, or compromise national security. This is why India’s policymakers need to prioritize a national strategy for research security.

India's Approach to Research Security

• Mapping Vulnerabilities and Risks: India must begin by identifying vulnerabilities in its research ecosystem, including foreign influence in universities, insider threats, and risks related to foreign funding in strategic sectors. Mapping these vulnerabilities will help create a targeted research security framework tailored to India’s specific needs.
• Collaboration Between Security Agencies and Researchers: To effectively address research security, there must be a partnership between security agencies and academic institutions. Researchers must be engaged in formulating policies to protect sensitive research areas while avoiding over-regulation. This partnership can help ensure that security measures align with the needs of scientific progress.
• Balancing Security and Open Science: One of the core challenges of research security is balancing it with the principles of open science. While it is essential to protect national interests, restricting international collaborations or open data could stifle innovation. A risk-based approach, with clear guidelines on sensitive technologies, could help maintain this balance.

Challenges and Implementation

• International Collaboration vs. Security: Science is inherently international, and curbing collaborations or imposing stringent security measures could restrict academic freedom. However, certain collaborations, especially with nations posing strategic risks, need to be evaluated and controlled. Striking the right balance is key.
• Administrative and Regulatory Burdens: Introducing research security measures could add to the already burdensome regulatory environment in Indian research institutions. Policymakers must ensure that security measures do not hinder scientific innovation and are implemented without causing undue bureaucratic delays.
• Capacity Building and Funding for Research Security: A dedicated office, like the one in the U.S. National Science Foundation, could be established within India’s National Research Foundation (ANRF). This office would coordinate efforts between security agencies, academic institutions, and the government to ensure robust research security practices and create a specialized cadre of professionals.

Practice Question:

Q. India's growing focus on advanced technologies necessitates the strengthening of research security. Critically analyze the importance of research security in safeguarding India’s strategic sectors and suggest measures to balance it with the principles of open science.

A recent tragic incident where a BMTC bus driver died due to cardiac arrest while on duty has brought attention to the rising poor health outcomes in urban India, especially among marginalised and informal workers. This incident highlights the urgency of addressing the health challenges faced by those working in hazardous environments, often with limited access to healthcare and social protections.

Health Challenges in Urban India

• Triple Health Burden of Marginalised Communities: Marginalised urban communities face a triple health burden due to hazardous work conditions, limited healthcare access, and financial instability during health crises. These factors are compounded by social and economic marginalisation, leading to poor health outcomes for informal workers, migrants, and people living in slums.
• Rising Non-Communicable Diseases (NCDs): Data from the National Family Health Survey (NFHS) show a worrying rise in NCDs like hypertension, diabetes, and obesity in India, even as tobacco and alcohol consumption have declined. The silent nature of NCDs necessitates regular screening and early detection, but the lack of preventive care and health education creates significant financial burdens for vulnerable populations.
• Inadequate Access to Public Health Systems: Public healthcare, which should cater to the lowest socio-economic strata, is often inaccessible to urban marginalised populations. Poor availability and access to primary health care in urban areas, especially for informal workers and migrants, prevent the effective implementation of universal health coverage and exacerbate the health crisis in these communities.

Importance of Early Detection and Screening

• Screening and Early Detection: Regular screening for NCDs can help in early detection and reduce out-of-pocket expenditures by identifying risks at an individual and community level. This, in turn, supports evidence-based public health planning and informs strategies for health education and promotion, particularly in underserved urban areas.
• Community-Based Health Promotion: Community engagement is crucial for sustainable health interventions. By co-creating health promotion activities, communities can reduce the burden on public health systems while simultaneously increasing awareness about healthcare pathways, social protection schemes, and preventive measures for NCDs.
• Leveraging Technology for Monitoring: In the era of digital technology, real-time health monitoring could help track vital parameters like blood pressure and blood sugar levels, providing accessible health data for vulnerable groups. This could aid in epidemiological modelling and inform public health responses to prevent the spread of NCDs in urban areas.

Pathway for Action

• State-Level Action Plans for NCD Care: India needs comprehensive state-level action plans for NCD care, with a focus on improving access to primary healthcare for marginalised urban communities such as migrants, informal workers, and people in informal settlements. Collaboration between urban local bodies, health departments, and community-based organisations will be key to addressing these gaps.
• Scaling Up Community-Led NCD Surveillance: Establishing community-based NCD surveillance systems in marginalised urban areas will ensure that health risks are monitored and addressed at the grassroots level. This can create healthier cities by fostering a collective approach to health promotion, surveillance, and education.
• Multi-Stakeholder Collaboration for Healthy Cities: Creating healthy cities requires collaboration between city administrations, health experts, think tanks, and community organisations. Through co-created solutions, urban health systems can be improved, ensuring better access to healthcare and reducing health inequities in growing urban populations.

Practice Question:

Q. Assess the health challenges faced by marginalised urban communities in India, particularly concerning non-communicable diseases. How can early detection, technology, and community-based approaches contribute to improving health outcomes in urban areas?

In October 2024, the Ministry of Electronics and Information Technology (MeitY) convened meetings with experts to discuss the establishment of an AI Safety Institute under the IndiaAI Mission. This initiative comes on the heels of global discussions on AI safety, including Prime Minister Modi's U.S. visit and the United Nations’ Summit of the Future. The rising global focus on AI governance presents India with an opportunity to lead in shaping AI safety practices on the global stage.

India’s Strategic Role in AI Safety

• Building on Global Leadership: India’s leadership at the G20 and the Global Partnership on Artificial Intelligence (GPAI) positions it as a key player in AI governance. India has the potential to unify the global majority’s concerns, especially regarding the human-centric safety of AI, and contribute significantly to global discussions on AI regulation and oversight.
• AI Safety Institute’s Design and Purpose: The proposed AI Safety Institute should focus on building domestic capacity, leveraging India's advantages in AI, and connecting with international initiatives such as the Bletchley Process. It should serve as a non-regulatory technical institution, concentrating on AI risk assessments, safety research, and global collaboration without imposing restrictive regulations on AI deployment.
• Multistakeholder Collaboration in Governance: The United Nations’ Global Digital Compact emphasizes collaboration among governments, businesses, and civil society for AI governance. India’s AI Safety Institute could play a pivotal role in championing these principles, promoting inclusive participation from developing countries, and focusing on the global majority's interests in AI safety.

Institutional Challenges and Considerations

• Learning from Existing Models: India should learn from the AI safety frameworks of the U.S. and U.K., which have already established AI Safety Institutes. These institutes focus on proactive information sharing, risk assessment, and safety testing without taking on regulatory enforcement roles, allowing for open collaboration across stakeholders while ensuring public safety.
• Avoiding Over-Regulation: India should be cautious in its approach and avoid prescriptive regulatory controls similar to the EU and China. Over-regulation stifles innovation, as seen in the EU’s stringent AI regulations. India’s AI Safety Institute should focus on technical research, testing, and standardisation rather than enforcement, thus encouraging proactive industry collaboration.
• International Collaboration: The Bletchley network of AI Safety Institutes, led by countries like the U.S. and U.K., offers an international platform for collaboration. India’s AI Safety Institute should engage with this network, facilitating knowledge exchange and providing a technical backbone for AI governance. The exchange of insights and resources will help India keep pace with the rapid advancements in AI technology.

Charting India’s Approach to AI Safety

• Focus on Technical Research and Testing: The AI Safety Institute should be designed as an independent, non-regulatory body focused on AI safety research and testing. By doing so, India can avoid unnecessary bureaucratic control and ensure that AI technologies are evaluated based on scientific evidence and international best practices.
• Championing Human-Centric Risks: India’s AI Safety Institute could focus on addressing AI risks related to bias, discrimination, social exclusion, privacy, and labor markets. This would allow India to bring a global perspective on the socio-economic and gendered impacts of AI to the forefront of international dialogues.
• Global Stewardship of AI Governance: If successful, India could position itself as a global leader in AI governance, advocating for evidence-based, inclusive, and proportionate policy solutions. The AI Safety Institute could demonstrate India’s commitment to scientific temper and responsible AI deployment, establishing India as a steward of forward-thinking global AI governance.

Practice Question:

Q. Discuss the role of AI Safety Institutes in global AI governance and assess how India can leverage its comparative advantages in AI to contribute to international AI safety discussions. How should India design its AI Safety Institute to balance innovation and safety?