GS Analyst: Daily Current Affairs

President-elect Donald Trump recently spoke about his interest in securing U.S. control of Greenland and the Panama Canal, and said he would not rule out the use of military force.

Why Would Trump Want to Control Greenland?

Greenland, a semi-autonomous part of Denmark, became strategically important for the U.S. during World War II when the U.S. established its military base, which remains today as Pituffik Space Base.

• Strategic Location: Greenland is located between the U.S., Russia, and Europe, making it a key area for defense and economic interests. Its proximity to the Arctic, where shipping routes are opening up due to melting ice, makes it strategically important.
• National Security: The U.S. has a military base in Greenland, and Trump believes its location could help protect the free world against rising threats from countries like China and Russia.
• Resources: Greenland is rich in natural resources, including oil, natural gas, and rare minerals that are valuable for military technologies and electric vehicle production, resources that are currently sourced from Russia and China.

Why Would Trump Want Control Over the Panama Canal?

Built by the U.S. in the early 20th century, it was handed back to Panama in 1999after years of tension over its control, with the Panama Canal Authority now managing it.

• Economic Security: The Panama Canal is a crucial global trade route that connects the Pacific Ocean to the Caribbean Sea and Atlantic Ocean. About 40% of U.S. container shipping passes through it, making it vital for economic security.
• Falsely Alleged Chinese Control: Trump claimed that the Panama Canal is operated by China, a claim disputed by Panama’s government. Trump suggested that the U.S. should regain control of the canal to ensure it remains free from Chinese influence.
• Panama’s Sovereignty: The Panama Canal was handed back to Panama in 1999 after a treaty was signed, and Panama asserts that the canal is under Panamanian sovereignty, which Trump disagreed with, citing its strategic importance for U.S. interests.

The government floated the draft Digital Personal Data Protection (DPDP) Rules 2025 for public consultation.

What is the DPDP Act 2023?

• The Digital Personal Data Protection Act (DPDP) 2023 is a law passed by the Indian government to regulate how personal data of individuals is collected, processed, and protected in the digital world.
• The law mandates that companies and organizations (referred to as data fiduciaries) must obtain consent from individuals before collecting their data.
• The Act aims to protect citizens' personal data from misuse, ensuring transparency and accountability for organizations handling this data.

Why is the DPDP Act Necessary?

• As more services shift online, personal data is being increasingly digitized. While this offers convenience, it also exposes people to the risk of misuse, such as unauthorized data sharing or cybercrimes.
• The DPDP Act addresses these issues by enforcing stricter rules on how digital platforms collect, store, and use people's data. 

What are the DPDP Rules 2025?

• The DPDP Rules 2025 are the set of regulations developed to help implement the DPDP Act 2023.
• These rules provide the detailed processes and mechanisms for ensuring the Act’s provisions are properly followed.
• Key Features of the Draft DPDP Rules 2025:
• Data Protection Board (DPB): The draft rules outline the framework for setting up the Data Protection Board (DPB). The DPB will be responsible for adjudicating complaints and enforcing penalties related to violations of data protection rules. The DPB will operate digitally, making it easier for people to file complaints and track cases.
• Consent Management for Children's Data: The rules focus on the protection of children's data, requiring entities to obtain verifiable parental consent before processing a child's personal data. This will be enforced through technical and organizational measures.
• Cross-border Data Transfer: The draft rules allow for the transfer of personal data outside India, but only in specific cases approved by the government. The government will decide which data can be transferred and under what circumstances.
• Rights of Individuals: The rules ensure that individuals have control over their personal data. They can withdraw consent, update, or delete their data, and file complaints against entities that misuse their data.
• Data Fiduciaries and Consent Managers: Organizations that collect and process personal data, like social media platforms, e-commerce websites, and online gaming services, are called data fiduciaries. They are required to seek explicit consent from individuals before using their data.
  • Additionally, consent managers—third-party platforms that help collect and manage consent on behalf of users—are also part of the framework. For instance, platforms that manage financial data and health records may act as consent managers.
• Penalties for Violations: The DPDP Act 2023 provides a penalty mechanism for data fiduciaries who fail to comply with the law. Penalties can be as high as Rs 250 crore for serious violations. The severity of the penalty will depend on factors such as the nature of the violation, efforts made to prevent it, and the duration of the breach.
• Exemptions: Some exemptions apply under the DPDP Act. These exemptions include cases related to law enforcement activities, judicial functions, or performing regulatory functions that require the processing of personal data. Startups or entities engaged in research may also be granted certain relaxations.
• Filing Complaints: Citizens who believe their data rights have been violated can file complaints with the Data Protection Board (DPB), which will function digitally. Individuals will be able to file complaints online, and the Board will handle these cases remotely.
• Timeline for Implementation: While the DPDP Act 2023 was passed in August 2023, the rules are still under consultation. After the finalization of the rules, the government will take approximately two years to fully implement the Act, giving companies and organizations time to align their systems and processes with the new data protection requirements. 

Impact of the DPDP Act:

• The DPDP Act is aimed at improving transparency and accountability for digital platforms. It also gives individuals more control over their data, allowing them to make informed choices about how their personal information is used.
• The law will help safeguard citizens against the misuse of their personal data, whether through cybercrimes, unauthorized sharing, or breaches of privacy.

The Indian government has formed a Working Group to revise the base year of the Wholesale Price Index (WPI) and update its commodity basket, alongside the Producer Price Index (PPI). This comes at a time when inflation trends are under scrutiny, and the role of different inflation measures, such as WPI and PPI, is gaining prominence in economic policy discussions.

What is the Producer Price Index (PPI)?

• The Producer Price Index (PPI) measures the average change in prices received by producers for their goods and services over time.
• Unlike WPI, which tracks the prices of goods at the wholesale level, and CPI, which measures inflation at the retail level, PPI focuses on the production stage—specifically what producers (like farmers, manufacturers, and energy producers) receive for their output before goods are sold to wholesalers or consumers.
• Key Features of PPI:
  • Focus on Producers: PPI tracks price changes at the point where goods and services are produced, either at the factory gate or farm gate, before they reach wholesalers or consumers.
  • Broader Coverage: It includes a wide range of sectors such as manufacturing, agriculture, mining, and electricity, giving it a broader scope compared to WPI, which primarily covers goods.
  • Excludes Taxes: Unlike CPI, which includes indirect taxes, PPI excludes them to give a true reflection of what producers are paid, without the impact of tax

PPI’s Influence on WPI and CPI: The Domino Effect

The PPI plays a critical role in shaping broader inflation trends. Here's how it cascades down through the economy:

• PPI ? WPI: If producers face higher input costs (for example, higher costs for raw materials like crude oil or steel), they pass these costs on to wholesalers. As a result, the WPI increases, since wholesalers now have to pay more for goods.
• PPI ? CPI: When wholesale prices rise (as reflected in the WPI), retailers—who purchase goods from wholesalers—raise their prices. This, in turn, leads to higher costs for consumers, thereby causing the CPI to rise.

In simple terms, the PPI acts as the starting point for inflation. It reflects cost pressures on producers, which eventually ripple through to wholesalers (WPI) and then to consumers (CPI). This cycle helps us understand how inflation starts in the production process and impacts both wholesale and retail levels.

PPI vs. WPI: Key Differences

While both PPI and WPI measure price changes at the wholesale level, they differ in the scope and the type of prices they track:

• Scope of Coverage:
  • PPI includes a broader range of goods and services, covering both intermediate goods (e.g., raw materials like steel) and final products (e.g., consumer electronics).
  • WPI, on the other hand, mainly tracks wholesale prices of goods and does not include services.
• Tax Treatment:
  • PPI excludes indirect taxes (such as GST), which gives a clearer picture of what producers actually receive for their products.
  • WPI includes taxes, making it less reflective of pure producer pricing.

Why is PPI Important?

• PPI provides a more granular view of price movements.
• This helps policymakers and businesses understand inflation from its root cause—price pressures at the production level—rather than just its downstream effects at the consumer level.

Why does India rely on WPI and CPI?

While the PPI offers a deeper insight into inflation at the production stage, India predominantly relies on WPI and CPIfor its inflationary measurements. The reasons are as follows:

• Historical Data: Both WPI and CPI are long-established indices, and there is ample historical data to compare inflation trends.
• Ease of Interpretation: Policymakers, businesses, and the general public are more familiar with the WPI and CPI, making them easier to interpret.

However, economists argue that incorporating PPI more centrally in inflation measurement could enhance policy precision and provide a better understanding of inflationary pressures across different stages of the economy.

How PPI Influences Economic Policy?

The PPI plays an important role in shaping economic policy, especially in the following ways:

• Monetary Policy: If the PPI rises (indicating higher input costs for producers), the Reserve Bank of India (RBI)may consider tightening monetary policy (raising interest rates) to control inflation.
• Industrial Strategy: If certain sectors (e.g., steel or cement) show a significant rise in PPI, the government may intervene by reducing import duties or offering subsidies to help manage rising costs and protect domestic industries.

Challenges in Adopting PPI in India

Despite its advantages, India does not yet publish a comprehensive PPI and continues to rely on WPI and CPI. Some of the challenges to adopting PPI are:

• Data Availability: Collecting comprehensive PPI data across various sectors can be difficult and requires robust infrastructure.
• Transition Issues: Moving from a WPI-based system to a PPI-based one would require considerable changes in data collection and interpretation methods.

Victor Ambros and Gary Ruvkun won the 2024 Nobel Prize in Physiology or Medicine for discovering microRNAs and their role in controlling gene expression. This pioneering discovery was made using the roundworm Caenorhabditis elegans. 

Why is C. elegans Used in Research?

• The roundworm Caenorhabditis elegans (C. elegans) is a tiny, transparent nematode (worm) about 1 mm long.
• It has become one of the most important organisms for scientific research, especially in understanding genetics, cell death, aging, and gene expression.
• The worm’s simplicity and transparency make it ideal for studying fundamental biological processes that can be applied to human biology.
• Beneficial factors for research:
  • Small Size and Simple Anatomy: The worm has a small body, a transparent exterior, and only 302 neurons (much fewer than humans), which makes it easier to study than more complex animals.
  • Short Life Cycle: C. elegans completes its life cycle in about 3.5 days, allowing researchers to observe generations in a short time.
  • Simple Organism with Human-Like Features: Despite its simplicity, C. elegans has organ systems similar to humans, making it a model for studying biology that often reveals principles applicable to humans.

Key Discoveries and Contributions

• Genetic Research: In the 1960s, scientist Sydney Brenner proposed using C. elegans for genetic research. This led to many important discoveries about how genes control development and behavior.
  • For example, Brenner's work showed that genes in C. elegans could be mutated, causing changes in how the worm developed, which helped identify key genes involved in growth.
• Programmed Cell Death: In the 1970s, John Sulston mapped the development of C. elegans cells and found that some cells die at specific points during the worm’s growth. This process of "programmed cell death" is controlled by genes.
  • This finding was important because similar processes occur in humans, especially in the development of fingers, the nervous system, and even in diseases like cancer.
• Aging: C. elegans has been crucial in understanding how aging works. In the 1980s and 1990s, researchers found genes in C. elegans that influence its lifespan.
  • This led to the discovery that insulin signaling affects aging, a process that is the same in flies, mice, and humans. C. elegans is now a key model for studying aging and testing drugs that might extend lifespan.
• Genome Sequencing: The genome of C. elegans was sequenced in 1998, which was a big milestone in genetics.
  • This effort provided insights into how genes affect an organism's traits (called phenotypes). The technology developed to sequence the worm’s genome helped with the sequencing of the human genome later on.
• Gene Silencing (RNA Interference): In 1998, Andrew Fire and Craig Mello discovered RNA interference (RNAi) in C. elegans. RNAi is a process where double-stranded RNA (dsRNA) can "silence" or turn off specific genes.
  • This discovery was groundbreaking, as it showed that genes could be controlled directly by RNA, not just by DNA. RNAi has become a crucial tool in research and therapies for diseases like cancer and genetic disorders. For this, Fire and Mello won the Nobel Prize in Medicine in 2006.
• Green Fluorescent Protein (GFP): In 1994, Martin Chalfie introduced GFP from jellyfish into C. elegans, which made it possible to track genes and proteins in living organisms. The worm's transparency made it easier to see glowing cells when they were exposed to blue light.
  • This discovery revolutionized biological research, allowing scientists to study living organisms without killing them. Chalfie, Shimomura, and Roger Tsien, who expanded on this research, won the Nobel Prize in Chemistry in 2008.
• MicroRNAs and Gene Regulation: Victor Ambros and Gary Ruvkun made another groundbreaking discovery with C. elegans: microRNAs (miRNAs), tiny RNA molecules that control gene expression. In 1990s, Ambros found that the lin-4 gene produced a small RNA that could regulate another gene, lin-14. Ruvkun further showed that these miRNAs are important in regulating the timing of development.
  • This discovery has deep implications for understanding how genes are turned on and off during development. In 2024, Ambros and Ruvkun were awarded the Nobel Prize in Physiology or Medicine for this work.
• Neural Circuits: Despite having only 302 neurons, C. elegans exhibits complex behaviors. Researchers, such as John White, mapped its entire nervous system in the 1980s, creating the first detailed connectome (map of all neural connections). This work helped understand how neural circuits function, paving the way for studying behavior and brain function in more complex organisms.

A winter storm,caused by the expansion of the polar vortex southwards, hit a large swathe of the country.

What is the Polar Vortex?

• The polar vortex is a large, rotating mass of cold, low-pressure air found around the North and South Poles. It keeps the cold air trapped at the poles. There are two types:
  • Tropospheric Polar Vortex: It is located in the lower atmosphere (10-15 km high), where most weather events occur.
  • Stratospheric Polar Vortex: It is found much higher (15-50 km), and is stronger in autumn, disappearing in summer.

Why Did the Winter Storm Happen?

• The winter storm in the US was caused by the expansion of the polar vortex southwards. Normally, the polar vortex stays near the poles, but sometimes, it weakens or shifts, allowing cold Arctic air to move southward. This can lead to extreme cold weather even in areas like Florida.
• Under normal conditions, the jet stream—a fast-moving air current in the upper atmosphere—keeps cold air contained in the polar region. The polar vortex helps maintain this jet stream’s position. However, when the vortex weakens:
  • The jet stream becomes wavy and unstable.
  • Cold air from the polar vortex can break off and move south, leading to extreme weather, including snowstorms and sub-zero temperatures.
• In this case, the weakening of the vortex allowed extreme cold air to move over a large part of the US, causing dangerous weather conditions like snow, heavy winds, and school closures.

The Karnataka High Court struck down the Green Energy Open Access Rules, 2022 introduced by the Union Government, citing legislative overreach. The court ruled that the central government overstepped its authority in framing the rules, as they should have been enacted through parliamentary legislation or by state regulatory bodies under the Electricity Act, 2003.

Key Points of the Judgment:

• Violation of Federal Structure: The court found that the rules infringed on the powers of state regulatory bodies, particularly the Karnataka Electricity Regulatory Commission (KERC), and contradicted the federal structure of governance mandated by the Constitution.
• Legislative Overreach: The central government could not bypass parliamentary law-making and directly frame such rules. The Electricity Act requires the framing of regulations by state regulators, and it was inconceivable that the government could sidestep this requirement.
• Delegation of Legislative Power: The court highlighted the principle of legislative delegation and pointed out that the Electricity Act assigns specific roles to various authorities. The central rules, by instructing state commissions to amend their own regulations, encroached upon the independent regulatory functions of the state.

The Union government of India is taking steps to regulate artificial intelligence (AI) and ensure its safe and effective governance. A government panel, under the IndiaAI Mission, has proposed guidelines to manage AI's growing impact across various sectors. These guidelines emphasize the creation of a coordinated approach to oversee AI's evolution and ensure compliance across the country.

Key Recommendations:

• Inter-Ministerial AI Coordination Committee: The report suggests setting up a committee to ensure all government departments work together effectively on AI policies and regulations.
• Technical Secretariat: The Ministry of Electronics and Information Technology (IT) should house a technical unit that brings in experts from various departments to pool knowledge and assess AI-related risks.
• Principles for AI Governance: The guidelines propose several principles to govern AI in India, including:
  • Transparency: AI systems should be clear in their development and capabilities.
  • Accountability: Developers and users of AI systems must be accountable.
  • Safety and Reliability: AI systems must be robust and safe by design.
  • Privacy and Security: AI systems must ensure privacy and security.
  • Fairness and Non-Discrimination: AI must be inclusive and fair, avoiding bias.
  • Human-Centered Values: The design and use of AI should prioritize human well-being.
  • Sustainability: AI innovation should benefit everyone equitably.
• Life Cycle Approach: The guidelines stress that AI policies should consider all stages of AI development—design, deployment, and diffusion. Risks at each stage must be addressed carefully.
• Ecosystem Approach: All stakeholders involved in AI—data providers, developers, deployers, and end-users—must be considered when forming regulations.
• Self-Regulation in AI Sector: The report encourages AI developers and deployers to regulate themselves, minimizing government intervention while promoting responsible AI use. It emphasizes applying existing laws to handle risks like cybersecurity and deepfakes, rather than introducing new laws.
• Technology-Enabled Governance: Instead of strict oversight, the panel proposes a digital governance system, using tech to manage risks and gradually scale up regulatory measures as the AI space grows.
• Promoting Beneficial AI Use: The report aims to create a supportive policy environment for AI that fosters responsible applications, reduces risks, and fills regulatory gaps.

The suspicious death of freelance journalist Mukesh Chandrakar in Chhattisgarh has highlighted the increasing vulnerability of reporters, especially in small towns and rural areas. Chandrakar was known for his investigative work on corruption in road construction, shedding light on the challenges faced by journalists working in remote regions of India.

Corruption and the Vulnerability of Journalists

• Rising Corruption in Development Projects: Chhattisgarh’s rapid development, especially in road construction with over Rs 20,000 crore invested, has raised concerns about corruption. Journalists who reported on such scams, have faced severe threats due to their exposés on fraudulent practices.
• Freelancers as Easy Targets: Freelance journalists, especially in vernacular media, often lack financial support and legal backing. This makes them easy targets for corrupt contractors, bureaucrats, and law enforcement officials. Similar attacks on other journalists, like Rupesh Kumar Jha in Jharkhand, showcase this pattern.
• Threats to Digital and Local Journalism: The rise of digital news and small media outlets has made it harder for freelancers to challenge the powerful corporate and political lobbies. The closure of independent blogs and podcasts, along with growing violence against journalists, signals the grim state of press freedom in India.

Safety and Persecution of Journalists

• Violence Against Journalists: Several incidents have highlighted the increasing physical danger faced by journalists in India.
• Journalists Targeted for Reporting Corruption: Journalists who report on issues like illegal clinics or industrial pollution, have been subjected to violence or even death. These tragic incidents underscore the risks associated with investigative journalism in India’s hinterlands.
• State of Press Freedom in India: The Editors' Guild of India and the National Union of Journalists have expressed concern over the lack of journalist safety, especially in rural regions. This has contributed to India’s declining rank in global press freedom indices.

Historical Context and Challenges

• Past Incidents of Journalistic Attacks: The disappearance of journalist Umesh Dobhal in the 1980s after exposing the local liquor mafia in Uttarakhand is a stark reminder of how journalists investigating crime and corruption have faced severe retaliation. Despite a CBI probe, Dobhal’s tragic fate remains a symbol of the dangers faced by investigative reporters.
• Government and Legal System Response: While some culprits were brought to justice in Dobhal’s case, the present scenario shows a reversal where accusers are often detained, while those involved in criminal activities remain free. This trend reflects a weakening of judicial and law enforcement support for journalists.
• Role of Journalists in Rural Areas: Freelance journalists working in remote regions play a crucial role by directly reporting from the ground. They bring attention to local issues and corruption, often using social media as a platform to bypass traditional media constraints. Their unique understanding of local dialects and contexts gives them an edge in reporting, yet their safety remains unprotected.

Practice Question

Q. Discuss the challenges faced by investigative journalists in rural India, especially those working as freelancers. How does the lack of safety and support affect the quality of journalism, and what measures can be taken to safeguard journalists in the country?

India is transitioning from the Wholesale Price Index (WPI) to the Producer Price Index (PPI) to better measure inflation. A committee was formed in December 2023 to improve WPI and to recommend a roadmap for transitioning to PPI, with an 18-month timeline for its recommendations. This move addresses longstanding issues with WPI, such as its exclusion of services, and aims to improve inflation measurement and policy-making.

Challenges in Transition

• Data Collection Issues: A significant hurdle in adopting the PPI is the difficulty in collecting accurate data, especially when distinguishing between prices at the intermediate and final levels for services. This data complexity will impede the smooth implementation of the PPI.
• Technological Requirements: The transition will require sophisticated IT systems to handle the new data collection mechanisms, which will incur high costs. Additionally, bureaucratic delays and lack of expertise are expected to slow down the process further.
• Reluctance of Firms: Firms may be reluctant to provide the necessary data, complicating the transition. The success of the PPI implementation will depend on the government's commitment and the willingness of businesses to cooperate.

Benefits of PPI over WPI

• Inclusion of Services: Unlike the WPI, which only covers goods, the PPI includes services, construction, and domestic production from the first commercial transaction, making it a more comprehensive inflation measure.
• Granularity and Stability: The PPI is more granular and stable than the WPI, providing better insights into price changes and offering improved policy guidance, particularly for the Reserve Bank of India in formulating monetary policies.
• Better GDP Deflator: The PPI offers a better measure of the GDP deflator, which is crucial for accurate economic assessments. Most G20 countries already use the PPI, underscoring its global recognition as a more effective inflation measure.

Delays and Historical Context

• Previous Committee Recommendations: A previous committee, the Goldar Committee, had already conducted extensive research into transitioning to the PPI and submitted its recommendations seven years ago. Despite its findings, no action has been taken so far, and the current committee risks reinventing the wheel.
• Prolonged Timeline: The newly formed committee has been given 18 months to submit its recommendations, which critics argue is unnecessary given the groundwork laid by the Goldar Committee. Even if it delivers its report early, the index transition will still lag by several years.
• Government’s Role: The success of transitioning to the PPI largely depends on the government's determination and proactive efforts. Past delays indicate that the process may take longer than expected, despite the clear need for change.

Practice Question

Q. Examine the challenges and benefits associated with India’s transition from the Wholesale Price Index (WPI) to the Producer Price Index (PPI). How can this transition enhance the accuracy of inflation measurement and policymaking?

The India Meteorological Department (IMD) is set to celebrate its 150th anniversary next week. This milestone offers an opportunity to review the evolution of weather forecasting in India, its challenges, and the future trajectory of the institution.

Evolution of IMD and Milestones

• Early Beginnings: The foundation of meteorological observation in India dates back to 1793 with the establishment of the Meteorological and Astronomical Observatory in Madras. This marked the initiation of systematic weather analysis.
• Formation of IMD: The India Meteorological Department was officially founded in 1875 following the formation of a National Meteorological Committee by the Asiatic Society of Bengal. This institution has played a crucial role in weather prediction for over 140 years.
• Advancements in Technology: Since its inception, IMD has made significant advancements, from producing its first daily weather report in 1878 to integrating radar systems and satellite technology, significantly enhancing forecasting accuracy.

Challenges and Failures

• Forecasting Accuracy Issues: Despite its advancements, IMD has faced challenges, such as during the Chennai floods of 2015, when its forecasting failed to predict the intensity of the event accurately, causing significant losses.
• Gaps in Early Warning Systems: In 2013, the IMD’s early warning system proved inadequate during the Uttarakhand floods, highlighting deficiencies in communication and timely dissemination of alerts.
• Climate Change Impact: The unpredictability of weather, exacerbated by climate change, poses a new challenge. IMD’s ability to forecast localized weather changes and assess the impacts of climate change needs further enhancement.

Future Prospects and Areas of Improvement

• Upgradation of Technology and Infrastructure: To improve forecasting capabilities, IMD must prioritize regular technology and infrastructure upgrades. Modernization is critical to handle the increasingly complex weather patterns due to climate change.
• Recruitment and Training: Ensuring the recruitment of sufficient personnel, along with ongoing training, is vital for IMD to maintain its forecasting accuracy and improve operational efficiency.
• Collaboration with Private Sector: Following the successful collaboration model of ISRO with the private sector, IMD could benefit from exploring similar partnerships to enhance forecasting capabilities and public engagement.

Practice Question

Q. Evaluate the role of the India Meteorological Department in managing weather-related disasters in India. Discuss its historical evolution, key challenges, and the necessary steps to improve its forecasting capabilities in the context of climate change.