GS Analyst: Daily Current Affairs

Context

The global landscape is witnessing significant shifts in power dynamics, with the United States facing internal challenges and external pressures from emerging global players like China and Russia.

Challenges to American Influence:

• Varied assessments: The first set of issues revolves around the assessment of America's traditional strengths and its perceived global standing.
• Concerns over internal political division: While there's a strong pro-American lobby advocating for closer ties with the United States in India, authoritative commentators raise concerns about the country's internal divisions and its diminishing influence on the global stage.
• Risks posed by authoritarian tendencies: This sentiment is echoed by former U.S. President Donald Trump and current President Joe Biden's re-election bid, suggesting a broader debate about America's global role.

Erosion of American Leadership and Legitimacy:

• Actions undermining global cooperation: A second concern stems from the erosion of American leadership and legitimacy in the international arena.
• Withdrawal from key agreements: The U.S.'s withdrawal from international agreements, such as the Trans-Pacific Partnership, and its emphasis on military interventionism have raised doubts about its commitment to global cooperation.
• Impact of domestic polarization: Moreover, internal polarization and ideological divisions within the U.S. have further complicated its ability to engage constructively with the international community, undermining its credibility as a global leader.

Rise of China and Russia:

• Strategic objectives: Lastly, there's growing recognition of the strategic challenges posed by rising powers like China and Russia.
• Utilization of economic coercion: Both countries are actively seeking to reshape the global order and challenge Western democratic values. China's economic ascendancy and technological prowess, coupled with Russia's assertive foreign policy, present formidable challenges to American dominance.
• Implications of U.S.-China rivalry: The evolving dynamics of U.S.-China rivalry and its implications for global security and economic stability underscore the shifting geopolitical landscape.

Context

The Ministry of Information and Broadcasting issued draft guidelines aimed at enhancing accessibility standards in the public exhibition of feature films in cinema theatres for persons with hearing and visual impairment. This initiative builds upon the Rights of Persons with Disabilities (RPwD) Act of 2016 and seeks to address the longstanding demand for making the movie-going experience more inclusive for the estimated 84 million deaf and hard of hearing individuals and 75 million blind and visually impaired individuals in India.

Efforts Towards Inclusive Cinema Experience

• Inclusive initiative: This initiative builds upon the Rights of Persons with Disabilities (RPwD) Act of 2016 and seeks to address the longstanding demand for making the movie-going experience more inclusive for the estimated 84 million deaf and hard of hearing individuals and 75 million blind and visually impaired individuals in India.
• Equal participation: It is a significant step towards ensuring equal participation in recreational activities for persons with disabilities (PwDs).
• Mandates and Encouragements: The draft guidelines mandate producers to provide films with accessibility features for certification by the Central Board of Film Certification (CBFC) and encourage theatres to hold special shows for PwDs, along with the use of specialized equipment and mobile apps to enhance accessibility.

Institutional Support and Legal Framework

• Institutional Efforts and Awareness: Institutional efforts, including the formation of a committee by the Supreme Court to make court facilities more disabled-friendly and the release of a handbook to combat stereotypes about PwDs, demonstrate a growing awareness of the need for inclusivity.
• Government Initiatives and Legal Mandates: Recent government initiatives, such as mandating digital offerings to comply with RPwD Act standards, reinforce the commitment to promoting accessibility.
• International Comparisons and Adoption Prospects: Comparisons with international practices, particularly in countries like the UK, highlight the potential for India to adopt similar norms and make accessibility the norm in cinema experiences.

Significance of Inclusive Cinema

• Cultural and Social Importance: Facilitating access to cinema, a cherished art form and significant cultural export, aligns with broader objectives of promoting inclusivity and social integration.
• Contribution to Soft Power and Global Influence: Enhancing accessibility in cinema not only benefits PwDs but also contributes to India's soft power and cultural influence globally.
• Continued Commitment to Inclusivity: Continued efforts towards inclusive cinema experiences reflect a positive trajectory towards building a more equitable and accessible society.

Context

The RBI's Monetary Policy Committee (MPC) has decided to maintain benchmark interest rates unchanged and continue with its stance of 'withdrawal of accommodation' to ensure inflation aligns progressively to the target. Despite strong domestic economic momentum, uncertainties in food prices pose challenges to the headline inflation trajectory.

Policy Decision and Rationale:

• RBI's Monetary Policy Committee (MPC) stance: The RBI's Monetary Policy Committee (MPC) has decided to maintain benchmark interest rates unchanged and continue with its stance of 'withdrawal of accommodation' to ensure inflation aligns progressively to the target.
• Concerns over food price pressures: Despite strong domestic economic momentum, uncertainties in food prices pose challenges to the headline inflation trajectory.
• Decision to maintain benchmark interest rates: Governor Shaktikanta Das cites concerns over food price pressures, which could potentially impact broader headline inflation, as a key factor in the decision to keep the repo rate unchanged at 6.5%.

Uncertainty Surrounding Food Prices:

• Discussion on food price gains in the RBI Bulletin: Recent discussions within the RBI Bulletin highlight the uncertainty surrounding food price gains and their potential impact on overall inflation.
• Risks posed by food inflation to overall inflation: Empirical evidence suggests that food inflation can sometimes mimic core inflation, posing risks to price stability by de-anchoring inflation expectations.
• Challenges despite improvements in agricultural activities: Despite some improvements in rabi sowing and seasonal corrections in vegetable prices, the average retail prices of key food items remain higher on a year-on-year basis, emphasizing the need for policymakers' resolve to curb inflation.

Challenges and Policy Response:

• Need for policymakers' resolve to curb inflation: Policymakers need to stay steadfast in their resolve to durably slow price gains towards the 4% target or risk dampening consumption and thereby undermining the growth momentum.
• Downward revision of inflation projection: The MPC's downward revision of its projection for average retail inflation in the January-March quarter reflects the cautious optimism regarding improvements in agricultural activities and seasonal factors affecting food prices.
• Importance of maintaining stance: Maintaining a disinflationary monetary policy stance remains crucial to anchor inflation expectations and ensure price stability amidst uncertainties in food prices and their potential impact on broader inflation trends.