GS Analyst
Daily Current Affairs

India's economic trajectory for the upcoming years is under the spotlight with the Asian Development Bank (ADB) projecting a growth rate of 7% for the fiscal year 2024-25. Despite a slight slowdown from the previous year's 7.6%, the ADB maintains a positive outlook on India's economic performance.

• Growth Forecast: ADB predicts India's GDP growth to reach 7.2% in 2025-26, indicating a steady upward trend over the medium term.
• Inflation Outlook: Retail inflation is expected to ease to 4.6% in the current fiscal year, further dropping to 4.5% in 2025-26.
• Persistent Food Inflation: The report notes that India's persistent food inflation is likely to decrease to 5.7% as farm output returns to normal levels, aligning with historical trends.
• Impact of Global Factors: The resurgence of inflation in the United States and the possibility of prolonged higher interest rates could impact Asia's inflation outlook, particularly affecting India due to its sensitivity to exchange rate fluctuations and reliance on imported goods.
• Monsoon Factor: A projected normal monsoon is expected to boost rural consumption, which suffered from erratic rainfall last year. Increased demand for work under schemes like the Mahatma Gandhi National Rural Employment Guarantee Act is anticipated, signaling a potential revival in rural economies.

1: Dimension- Economic Growth Trends

• Investment in Infrastructure: The government's emphasis on infrastructure development, including projects in transportation, energy, and digital connectivity, is expected to stimulate investment and drive economic growth.
• Export Promotion Strategies: Initiatives aimed at boosting exports, such as the Production-Linked Incentive (PLI) scheme and trade facilitation measures, are likely to enhance India's competitiveness in global markets and contribute to economic expansion.
• Regional Disparities: Addressing regional disparities in economic development through targeted policies and investments will be crucial to ensure inclusive growth and equitable distribution of benefits across different states and regions.

2: Dimension- Inflation Dynamics

• Supply Chain Resilience: Enhancing supply chain resilience through reforms in logistics, warehousing, and distribution networks can help mitigate inflationary pressures arising from disruptions in commodity markets and transportation systems.
• Monetary Policy Tools: The central bank's monetary policy toolkit, including interest rate adjustments and liquidity management measures, will play a pivotal role in stabilizing inflation expectations and supporting economic recovery amidst evolving global economic conditions.
• Commodity Price Volatility: Monitoring and managing volatility in global commodity prices, particularly for essential commodities like crude oil and food grains, are essential to prevent cost-push inflation and ensure macroeconomic stability.

3: Dimension- Impact of Global Factors

• Trade Policy Reforms: Pursuing trade policy reforms, including bilateral and multilateral trade agreements, can facilitate market access for Indian exporters and attract foreign investment, thereby stimulating economic growth and job creation.
• Global Financial Market Developments: Monitoring developments in global financial markets, including capital flows, exchange rate movements, and investor sentiment, will be crucial to mitigate risks associated with external volatility and maintain financial stability.
• Climate Change and Sustainability: Integrating climate change mitigation and adaptation strategies into economic planning and development policies can enhance resilience to environmental risks and foster sustainable growth in the long run.

Mains Practice Question

1. Examine the factors projected to influence India's GDP growth and the measures to alleviate inflationary tendencies for the fiscal year 2024-25, taking into account domestic and global economic conditions."

The Indian Space Research Organisation (ISRO) has achieved a significant milestone by practically eliminating orbital debris in Earth's orbit through its PSLV-C58/XPoSat mission. This accomplishment marks a crucial step towards mitigating the growing threat of space debris.

Transformation of Fourth Stage:

• POEM-3 Development: The last stage of the Polar Satellite Launch Vehicle (PSLV) used in the mission was transformed into the PSLV Orbital Experimental Module-3 (POEM-3), serving as an orbital station.
• De-Orbiting Strategy: Instead of leaving the fourth stage to float in orbit after completing its mission, ISRO lowered POEM-3 from 650 km to 350 km, rendering it more susceptible to re-entry into the Earth's atmosphere.
• Passivation Measures: ISRO ensured the safe disposal of the stage by passivating it, meaning that its fuel was dumped to prevent the risk of explosion and the generation of small debris fragments.

Significance of POEM:

• Cost-effective Space Platform: Developed by the Vikram Sarabhai Space Centre (VSSC), POEM utilizes the spent fourth stage of a PSLV rocket as an orbital platform, facilitating scientific experiments and payload operations.
• Innovative Technology: Equipped with solar panels, a lithium-ion battery, and a navigation, guidance, and control (NGC) system, POEM represents a sustainable and resource-efficient approach to space exploration.
• Demonstration of Reusability: ISRO's successful demonstration of reusing the fourth stage of its rocket highlights its commitment to innovation and cost-effectiveness in space missions.

Addressing Space Debris Concerns:

• Rising Threat of Space Debris: With the proliferation of satellites and space missions, space debris has emerged as a critical concern, posing risks to operational spacecraft and future missions.
• Environmental Impact: Space debris, including defunct satellites and fragments of spacecraft, travels at high speeds and can cause collisions, potentially leading to cascading effects and further debris generation.
• International Mitigation Efforts: While there are currently no international space laws specifically addressing low Earth orbit (LEO) debris, spacefaring nations adhere to guidelines set forth by organizations like the Inter-Agency Space Debris Coordination Committee (IADC) to mitigate debris-related risks.

1: Dimension-Technological Advancements

• Space Debris Mitigation Technologies: ISRO's innovative approach to space debris mitigation underscores the importance of technological advancements in addressing space sustainability challenges.
• Reusable Space Platforms: POEM exemplifies the potential of reusing space hardware components to minimize waste and optimize resource utilization in space missions.
• Future Prospects: Continued investments in research and development of space technologies will be essential to enhance space situational awareness and develop effective debris mitigation strategies.

2: Dimension-Environmental Conservation

• Preserving Space Environment: Eliminating orbital debris contributes to preserving the space environment and ensuring the long-term sustainability of space activities.
• Mitigating Risks: By actively addressing the risks associated with space debris, space agencies play a crucial role in safeguarding critical space assets and reducing the likelihood of collisions.
• Global Cooperation: Collaboration among nations and international organizations is essential to develop comprehensive space debris mitigation frameworks and promote responsible space conduct.

3: Dimension-Policy and Governance

• Regulatory Frameworks: The absence of comprehensive international space laws necessitates the development of robust regulatory frameworks to govern space activities and address emerging challenges like space debris.
• Standardization and Compliance: Standardization of space debris mitigation practices and mechanisms for compliance monitoring are crucial for ensuring the effectiveness of mitigation efforts and promoting responsible space behavior.
• Diplomatic Initiatives: Diplomatic dialogues and multilateral agreements play a vital role in fostering cooperation and consensus-building on space governance issues, including debris mitigation and space sustainability.

Mains Practice Question

Q. Discuss the challenges and opportunities in addressing space debris concerns for sustainable space exploration.

India's manufacturing sector plays a crucial role in sustaining economic growth and achieving export targets. The Asian Development Bank (ADB) highlights the need for India to streamline its tariff policy and enhance trade competitiveness to integrate more effectively into global value chains (GVCs).

Dimensions

1: Dimension-Tariff Policy Simplification

• Rationale: India's growth strategy relies on increasing exports through integration into GVCs, necessitating a simplified tariff policy to reduce trade barriers and enhance transparency.
• Policy Reforms: Measures such as rationalizing tariff rates, reducing procedural complexities, and harmonizing trade regulations are essential for creating a conducive business environment for manufacturers.
• Impact Assessment: A simplified tariff policy promotes cost efficiency, enhances market access, and bolsters India's competitiveness in global trade, leading to increased exports and economic prosperity.

2: Dimension-Enhancing Trade Competitiveness

• Infrastructure Development: Investing in trade-related infrastructure, including ports, transportation networks, and customs facilities, is critical for reducing transaction costs and facilitating seamless trade flows.
• Trade Facilitation Measures: Implementing trade facilitation measures, such as single-window clearances, customs modernization, and digital trade platforms, enhances the efficiency and reliability of trade processes.
• Capacity Building: Strengthening institutional capacity for trade promotion and export development empowers businesses to navigate international markets effectively and capitalize on emerging opportunities.

3: Dimension-Integration into Global Value Chains

• Specialization Strategies: India must identify and leverage its comparative advantages in specific stages of production within GVCs to maximize its participation and value addition in global trade networks.
• Sectoral Focus: Prioritizing sectors with high export potential, such as automotive, electronics, and pharmaceuticals, facilitates targeted interventions to enhance competitiveness and foster sectoral growth.
• International Cooperation: Engaging in regional and bilateral trade agreements, participating in trade promotion initiatives, and strengthening economic ties with key trading partners enhance India's access to GVCs and promote sustainable trade expansion.

Mains Practice Question

Q: "Discuss the significance of simplifying India's tariff policy and enhancing trade competitiveness to boost manufacturing growth.

BJP state president has raised the demand to rename Sultan Bathery, a town in Wayanad to ‘Ganapathivattom'.

• Sulthan Bathery is one of the three municipal towns in Wayanad and is home to a Ganapati temple once known as Ganapathyvattam.
• The town got its name after Tipu Sultan invaded the Malabar region in the second half of 1700.
• The Mysuru ruler’s military used Ganapathyvattam as a battery for their ammunition and the town became known as ‘Sultan’s Battery’ in British records.

Chital was introduced in Ross islands of Andamans for hunting however it has become an invasive species.

• It is also known as the spotted deer, chital deer and axis deer, is a deer species native to the Indian subcontinent.
• It is the most common deer species in Indian forests.
• Habitat: Subtropical grasslands and forests.
• Distribution: It is widely distributed in Asia, especially in India, Sri Lanka, Bangladesh, Bhutan, and a small group in Pakistan.
• They prefer open grasslands, savannahs, and lightly forested areas.
• IUCN Red list: Least Concern