GS Analyst: Daily Current Affairs

United States President Donald Trump launched a crackdown on immigration, soon after assuming office. From his bid to end birthright citizenship to mobilising troops along the US-Mexico border, he took a hardline approach to illegal immigration. Amid Trump’s sweeping immigration clampdown, reports have emerged that India is planning to take back all its nationals living illegally in the US.

Illegal Indian Migrants in the US:

• As of 2022, there were around 220,000 illegal Indian immigrants in the US. Indians make up the third-largest group of undocumented migrants in the country, after Mexico and El Salvador.
• The total number of undocumented migrants in the US is approximately 11 million, with many of them facing deportation orders.
• Among them, about 20,407 Indians are either in detention or facing final removal orders by the US authorities.
• India is actively engaged in repatriating illegal Indian immigrants. The US is planning to deport about 18,000 Indians back to India, and the process of identifying and returning these migrants has already started.
• Major border points for S. entry.
  • Land Border Points (with Canada and Mexico):
    • S.-Mexico Border: Key crossings include San Ysidro (California), El Paso (Texas), Laredo (Texas), Nogales (Arizona), and Brownsville (Texas).
    • S.-Canada Border: Key crossings include Detroit-Windsor (Michigan-Ontario), Niagara Falls (New York-Ontario), Seattle-Vancouver (Washington-British Columbia), and Port Huron-Sarnia (Michigan-Ontario).
  • Sea Ports of Entry: Major sea ports include Port of Los Angeles, Port of New York/New Jersey, Port of Miami, Port of Houston, and Port of Seattle.

Why India is cooperating?

• By agreeing to take back its nationals, India is strengthening its relationship with the US under Trump’s administration. India hopes that this cooperation will help protect the interests of its citizens, particularly in securing visas and work opportunities.
• India is also hoping that this move will help deter secessionist movements, such as the Khalistan movement, among the Indian diaspora in the US.
• Additionally, India is trying to avoid a trade dispute with the US. Trump has criticized India’s high import taxes, and India wants to prevent any retaliatory measures that could hurt trade.

India’s challenges with illegal immigration

• Both India and the U.S. face significant challenges with illegal immigration, but the scale, causes, and responses differ greatly.
• India’s challenge primarily comes from Bangladesh, with an estimated 20 million illegal immigrants residing in the country, according to 2016 estimates. The issue is particularly concentrated in border states like Assam, where tensions are high due to the influx of migrants, especially after political turmoil in Bangladesh.

• India shares a 4,096-km border with Bangladesh, which is largely porous and difficult to control. The border includes rivers, marshes, and densely populated villages, making fencing and surveillance challenging.
• Resistance: India’s efforts to fence this border have been met with resistance from Bangladesh. In January 2025, there was a confrontation between India’s Border Security Force (BSF) and Bangladesh's Border Guard (BGB) over fencing projects, with Bangladesh citing a 1975 agreement that prohibits certain border construction.

The U.S. Bureau of Industry and Security (BIS) has introduced new rules about the export of AI chips and AI technology to certain countries. These changes are meant to protect U.S. national security and foreign policy interests, making sure that advanced AI technologies don’t end up in the wrong hands or are used irresponsibly.

What Do the New Rules Propose?

• The new rules mainly focus on advanced computing chips (which power AI systems) and AI models (software programs that process data to create outputs like information or media). These chips are crucial for developing AI technologies.
• The BIS is dividing countries into three tiers with different rules for exporting AI chips and technology:
• Tier 1: No restrictions for 18 U.S. allies and partners (like Australia, UK, Japan, South Korea). They can get AI chips without extra approvals.
• Tier 2: Countries like China and India are in this group. These countries can get chips, but only under certain conditions. For example, if the technology is used for advanced AI development, they need special permission (called Validated End User authorization). Basic chips with less computing power don’t need approval.
• Tier 3: Countries like North Korea, Iran, and Russia are restricted from getting this technology at all due to national security concerns.

Why Are the Restrictions in Place?

• The main concern is that S. adversaries could use advanced AI systems for military purposes, like improving their decision-making, planning, or logistics.
• There’s also a fear that these technologies could help make weapons of mass destruction or support cyber attacks and human rights abuses.
• The U.S. government also worries about Chinese companies using subsidiaries in other countries to bypass these restrictions and buy U.S. chips.
• Impact on India: For India, the rules could affect companies that want to use advanced AI chips for big data centers. Indian companies may need to apply for special authorization to get these chips quickly.
  • However, India is not in the group of trusted U.S. allies because of past issues with chips being sold to Russia. This means that Indian companies may face extra hurdles when buying advanced technology from the U.S.

The Central Board of Direct Taxes (CBDT) has clarified its stance on Principal Purpose Test (PPT) regarding Double Taxation Avoidance Agreement (DTAA), stating that it will be applicable prospectively, allowing grandfathering of prior investments. This clarification is especially important for investments made before the PPT was introduced in certain treaties, specifically the India-Mauritius, India-Cyprus, and India-Singapore DTAAs.

What is the Principal Purpose Test (PPT)?

• The PPT is a test used to determine whether the main purpose of a transaction or arrangement is to gain tax benefits from a Double Taxation Avoidance Agreement (DTAA) between countries.
• Substance requirements: To pass the PPT, taxpayers must prove that their activities have real substance in the country where they claim tax benefits (e.g., employees, offices, turnover, expenses).

Key Points in the New Guidance Note:

• Applicability of PPT: The PPT provisions will only apply prospectively. This means that it will apply to agreements made after the guidance note was issued, and not retroactively to agreements or transactions entered into before this.
• Grandfathering Provisions in Some DTAAs: India has made special bilateral commitments in its treaties with Cyprus, Mauritius, and Singapore. These commitments are known as grandfathering provisions.
  • These grandfathering provisions will not be affected by the new PPT guidelines. They will continue to apply as per the terms agreed in the respective DTAAs.
• Clarification on Treaty-Specific Commitments: The CBDT (Central Board of Direct Taxes) has clarified that these grandfathering commitments in the India-Cyprus, India-Mauritius, and India-Singapore treaties are separate from the new PPT provisions.
  • These commitments will be governed by the specific terms outlined in the treaties with these countries, and won’t be impacted by the PPT.
• Impact on the India-Mauritius Treaty: Before this clarification, there was some uncertainty about how the India-Mauritius treaty would be affected by the PPT provisions. With this guidance note, it is now clear that the grandfathering provisions in the India-Mauritius treaty will remain intact, which might allow the protocol for this treaty to come into effect starting April 1, 2025.
• Reference to BEPS Action Plan 6 and UN Model Tax Convention: The guidance also encourages tax authorities to refer to the BEPS Action Plan 6 (Base Erosion and Profit Shifting) and the UN Model Tax Convention when deciding how to apply the PPT provisions.
  • BEPS Action Plan 6 aims to prevent tax avoidance through treaty abuse.
  • The UN Model Tax Convention provides a framework for countries to draft their tax treaties, with certain reservations by India.

India's maritime sector is poised for significant growth, with the Union Ministry of Ports, Shipping & Waterways estimating that India will need an investment of USD 1 trillion by 2047 and ?5 lakh crore by 2030 to fully harness its potential. This investment is crucial to make India one of the top 10 maritime countries in the world by 2047.

India’s Maritime Sector Overview

• India is home to 12 major ports and over 200 minor ports. As the 16^th largest maritime nation in the world, India occupies a key position on global shipping lanes. Most cargo ships traveling between East Asia and destinations like America, Europe, and Africa traverse Indian waters.
• India’s maritime sector is the backbone of its international trade, handling:
  • 95% of India’s trade by volume.
  • 70% of India’s trade by value.
• Key Stats:
  • 1,530 ships under India’s flag in 2023.
  • India is the third-largest global ship recycler by tonnage.
  • India’s growing presence in global shipping and its expanding port infrastructure have contributed significantly to its economic growth. From 2014-15 to 2023-24, India’s major ports increased their cargo handling capacity by 87%, from 52 MT to 1,629.86 MT.

Key-Transformation in the maritime sector

• Green hydrogen production hubs are being established at Paradip, Tuticorin, and Kandla ports. These hubs will contribute to reducing carbon emissions from the maritime sector.
• Ship Recycling and the Hong Kong Convention: India is poised to become a global leader in ship recycling. The Hong Kong Convention on Ship Recycling is set to come into effect in June, and India is already compliant with the Convention’s standards.
  • Alang Shipyards in Gujarat are among the largest and most advanced in the world for ship recycling, positioning India as the global hub for ship recycling.
• Port Capacity Expansion: India’s port capacity will increase sixfold by 2047, aiming to reach 10,000 Million Tons (MT) per annum.
  • Current Port Capacity: India’s major ports are already handling 820 Million Metric Tons (MMT) of cargo annually, showing a 47% growth since 2014.
  • Paradip Port became the largest major port by cargo volume, handling 145.38 million tonnes in FY24.
  • Future Plans: The Vadhavan Port (Maharashtra) is set to become India’s largest container facility. Also, the International Container Transshipment Port at Galathea Bay (Great Nicobar) will help capture transshipment trade along key global routes.
• Efficiency Gains in Port Operations: India has made significant improvements in port operations:
  • Container Dwelling Time: Reduced to 3 days.
  • Vessel Turnaround Time: Improved to 9 days, surpassing the performance of several advanced economies.
  • Global Recognition: Nine Indian ports now feature in the World Bank’s Container Port Performance Index 2023, with Visakhapatnam ranked among the top 20 globally.

Challenges in Shipbuilding and Repair

While India’s maritime sector is growing rapidly, there are challenges in the areas of:

• Skilled Labour: There is a shortage of skilled workers for shipbuilding and repair.
• Sustainable Fuel: Adoption of sustainable fuel is crucial for transitioning to a net-zero emissions future in the maritime industry.

Every year on January 23, India observes Parakram Diwas to celebrate the birth anniversary of Netaji Subhas Chandra Bose, one of India's most revered freedom fighters.

What is Parakram Diwas?

• The Government of India officially declared January 23 as Parakram Diwas in 2021, marking the 124th birth anniversary of Netaji.
• Parakram Diwas highlights Netaji’s bravery and determination in the face of adversity. It reminds of his leadership in the Indian National Army (INA), where he united Indian soldiers to fight against British rule.
• His role in establishing the Azad Hind Government is also significant as it showed his deep commitment to India’s freedom struggle.
• This day acts as a reminder of how far India has come and what values we should continue to uphold for progress and unity.

Netaji Subhas Chandra Bose (1897-1945)

• Born on January 23, 1897, in Cuttack, Odisha, Bose came from a prominent Bengali family.
• He initially studied in Cuttack, later moving to Scottish Church College and Presidency College in Calcutta.
• During his college days, Bose developed a strong nationalist ideology and got involved in revolutionary activities against British colonial rule.
• Career in Civil Services: In 1921, Bose excelled in the Indian Civil Services (ICS) examination in England. However, his passion for India’s freedom made him resign from this prestigious career and return to India to work for independence.
  • In 1921 he resigned from the Indian Civil Service and returned to India.
• Netaji worked under the mentorship of prominent Congress leader Chittaranjan Das who, along with Motilal Nehru, left the Congress Party to form the Swaraj Party in 1922. 

• Leadership in Indian National Congress
  • In 1923, Bose was elected president of the All India Youth Congress.
  • Bose actively participated in the Salt Satyagraha of 1930 and opposed the suspension of the Civil Disobedience Movement, criticizing the Gandhi-Irwin Pact of 1931.
  • In 1938 and 1939, he was elected President of the Indian National Congress (INC). During this time, he pushed for more radical action against British rule.
  • In 1939, he founded the Forward Bloc, a group within the Congress aiming to strengthen resistance against the British. This marked his shift towards more aggressive nationalism.
• Formation of the Indian National Army (INA)
  • During World War II, Bose saw an opportunity to use global tensions to his advantage.
  • In 1942, he formed the Indian National Army (INA), consisting of Indian soldiers who were prisoners of war under the British.
  • The INA fought alongside Axis powers (mainly Japan) against the British in Southeast Asia. His famous slogan, "Give me blood, and I will give you freedom", inspired millions of Indians to join the struggle for independence.
  • The INA's primary objective was to liberate India from British rule by attacking British-occupied territories, including in Burma and India itself.
  • Bose’s famous slogans, “Jai Hind” and “Dilli Chalo,” became rallying cries for the INA and the Indian freedom movement.
  • On October 21, 1943, Bose declared the formation of the Azad Hind Government in Singapore, with the INA fighting alongside Japanese forces.

Prime Minister Narendra Modi marked the 10th anniversary of the Beti Bachao Beti Padhao (BBBP) initiative.

About Beti Bachao Beti Padhao (BBBP) initiative

• The scheme was launched in 2015 in Panipat, Haryana.
• The flagship initiative was aimed at addressing gender disparities, improving the Child Sex Ratio (CSR), and promoting education for girls.
• Beti Bachao Beti Padhao has partnered with the Ministry of Skill Development and Entrepreneurship to promote vocational training for young girls and women.
  • Initiatives such as ‘Khelo India’ have also contributed to identifying and nurturing talent in sports among girls.
• The government has integrated Mission Shakti into BBBP, which has expanded the scheme’s scope, ensuring safety, education, and economic empowerment of women.
• Significant Achievement 
  • Improvement in the sex ratio at birth: Over the decade, sex ratio at birth rose from 918 in 2014-15 to 933 in 2022-23.
  • Increased enrolment in secondary education: In 2014-15, 75.51% of girls were enrolled in secondary education. The numbers have seen a substantial boost, with the Gross Enrolment Ratio (GER) increasing from 75.51% in 2014-15 to 79.4% in 2021-22.
  • Institutional Deliveries: The percentage of institutional deliveries surged from 61% in 2014-15 to 97.3% in 2023-24, ensuring safer childbirth.
  • Ante-natal Care: First-trimester ante-natal care registrations rose from 61% to 80.5%, ensuring better maternal health.
• Challenge: In FY24, India’s Female Labour Force Participation (FLFP) stood at 7%, still lower than men’s participation. The rate is particularly low in urban areas, with many women engaged in unpaid domestic work. To improve this, more opportunities for women to enter formal employment and care work as a valid profession are essential.

The Union Cabinet approved the continuation of the National Health Mission (NHM) for another five years.

About National Rural Health Mission (NRHM)

• The NHM, launched in 2005 as the National Rural Health Mission (NRHM), aimed to improve public health systems and provide affordable and quality healthcare, especially in rural areas and for vulnerable groups.
• In 2012, the mission expanded to include the National Urban Health Mission (NUHM) to address urban healthcare needs, which led to the restructuring of NRHM into the broader National Health Mission (NHM).
• Achievements: Over the past decade, the NHM has achieved significant milestones:
  • Maternal Mortality Ratio (MMR) declined by 25 per cent, from 130 per 100,000 live births in 2014-16 to 97 per 100,000 in 2018-20.
  • Infant Mortality Rate (IMR) dropped from 39 per 1,000 live births in 2014 to around 28 in 2020.
  • Healthcare Workforce: Between 2021 and 2022, nearly 12 lakh health workers joined the NHM.
  • NHM has contributed significantly to reducing the incidence and improving the surveillance of non-communicable diseases (NCDs) such as tuberculosis (TB).
    • India has seen a decline in the incidence of TB, from 237 per 100,000 population in 2015 to 195 in 2023. The mortality rate for TB has also dropped from 28 to 22 in the same period.
  • COVID-19 Response: NHM played a pivotal role in the response to the COVID-19 pandemic, utilizing its healthcare facilities and workforce to deliver over 220 crore COVID-19 vaccine doses from January 2021 to March 2024.
  • NHM has also overseen the expansion of key programmes, including the
    • Measles-Rubella Elimination Campaign
    • Pradhan Mantri National Dialysis Programme
    • National Sickle Cell Anaemia Elimination Mission

A team of researchers using NASA's James Webb Space Telescope (JWST) and the Chandra X-ray Observatory has discovered a surprising black hole, named LID-568, that could help to understand how supermassive black holes form and grow.

What Is a Supermassive Black Hole?

• Supermassive black holes are huge black holes found at the centers of many galaxies, including our own Milky Way.
• They can be millions to billions of times heavier than the Sun.
• For example, the supermassive black hole Sagittarius A* at the center of the Milky Way is about 3 million times the mass of our Sun.

Despite their size, scientists aren’t entirely sure how these black holes grow so massive, especially when the universe was still young.

What Makes LID-568 Special?

• LID-568 is a low-mass supermassive black hole that existed only 5 billion years after the Big Bang (when the universe was around 8 years old in human terms).
• This black hole was found to be feeding (eating matter) at an incredibly fast rate—40 times faster than what scientists thought was the upper limit for black holes.
• It's a "super-Eddington" black hole, meaning it is pulling in matter at a rate higher than the normal limit.
• Why Is This Important? Normally, black holes can only pull in matter until the energy from the material (as it heats up and radiates) pushes back, preventing the black hole from growing any faster. This is known as the Eddington limit.
  • LID-568 is breaking this rule by feeding at a much higher rate, which has puzzled scientists.
  • This discovery could change how we think about the growth of supermassive black holes, especially how they became so massive in the early universe when there wasn't enough time or matter to feed them for long periods.

China expanded its export control list by including 28 U.S. entities, restricting access to critical minerals vital for high-tech industries like aerospace, semiconductors, and electronics. This highlights the growing geopolitical competition for critical minerals, a situation that directly impacts countries like India, which remains heavily reliant on imports for these essential materials. The situation underscores India’s need to strengthen domestic mineral exploration and production capacities.

China’s Strategic Mineral Export Controls

• Targeted Minerals: China’s export control targets critical minerals such as tungsten, gallium, lithium, and magnesium, vital for industries like semiconductors and batteries.
• Weaponization of Minerals: This is not the first instance of China using mineral exports as leverage, seen previously in the 2010 rare earths embargo against Japan.
• Strategic Calculations: China balances its restrictions carefully, avoiding impacts on its own industries and the global supply of minerals heavily reliant on Western imports.

India’s Mineral Diplomacy and Exploration Efforts

• Current Dependence: India continues to rely heavily on imports for critical minerals, such as lithium, cobalt, and rare earth elements, vital for its energy transition and technology manufacturing.
• Policy Initiatives: The Indian government has introduced reforms such as the Mines and Minerals Amendment Act 2023 and set up KABIL to secure overseas mineral investments, aiming to diversify supply sources.
• Challenges in Exploration: Despite these reforms, domestic exploration remains sluggish, with insufficient foreign participation and challenges in the classification and commercial viability of mineral blocks.

Key Issues in India’s Mineral Exploration and Market Participation

• Outdated Classification System: India’s outdated resource classification system leaves many auctioned mineral blocks in early exploration stages, deterring investment.
• Low Demand for Exploration Licenses: Despite reforms, the demand for exploration licenses remains low, reflecting the risk perception and lack of interest from private and foreign investors.
• Need for Fiscal Incentives: Offering larger upfront fiscal incentives for exploration could mitigate the risks, encouraging both domestic and foreign participation in mineral extraction projects.

Practice Question:

Q. Discuss the strategic importance of critical minerals in global geopolitics. What challenges does India face in securing these minerals, and how can policy reforms address these challenges?

U.S. President Donald Trump mandated America’s withdrawal from the World Health Organization (WHO), citing its handling of the COVID-19 pandemic and alleged political bias towards China. This move could severely affect WHO’s financial health and its operational capacity, especially in countries like India where the organization plays a vital role in health programs.

Impact on WHO’s Operations

• Financial Impact: The U.S. contributes approximately 20% of WHO's budget. Its exit will leave a significant funding gap, limiting WHO’s ability to implement global health programs, particularly in low-income countries.
• Expertise Loss: The absence of U.S. involvement will also deprive WHO of critical expertise in health management, reducing its capacity to guide countries, including India, in handling emerging health crises.
• Impact on India: In India, WHO supports key health programs such as immunization, the fight against neglected tropical diseases, HIV, malaria, tuberculosis, and antimicrobial resistance. A funding cut would hinder these programs' effectiveness.

Political and Institutional Factors Behind U.S. Withdrawal

• Trump’s Criticism of WHO: Trump’s administration had long criticized WHO for mishandling the COVID-19 crisis, accusing it of being biased toward China and failing to implement necessary reforms.
• U.S. Contribution Concerns: The U.S. expressed dissatisfaction over its financial contribution to WHO, viewing it as disproportionate and unfair. This contributed to the decision to withdraw from the organization.
• Pandemic Treaty Negotiations: The U.S. withdrawal from WHO also includes ceasing negotiations for a pandemic treaty designed to improve global pandemic preparedness and vaccine-sharing mechanisms.

Global Health Dynamics and India’s Role

• Vacuum in Global Health Leadership: The U.S. exit could shift global health leadership, potentially allowing China and countries from the Global South, like India, to take a more prominent role in shaping global health policies.
• India’s Position: As a leading voice in the Global South, India could step into the gap left by the U.S., particularly in areas such as global health diplomacy and improving international health systems.
• India’s Increasing Health Leadership: India's increasing influence could result in greater collaboration with other nations on health matters, improving its global standing and leadership in health policy.

Practice Question:

Q. Assess the implications of the United States' withdrawal from the World Health Organisation for global health governance. How can India leverage this opportunity to strengthen its role in global health diplomacy?

A farmers’ protest in Punjab has intensified after a prolonged hunger strike by a protest leader, coupled with new agricultural policies. The protest, which revolves around demands for a legal guarantee on Minimum Support Price (MSP) and other farmer welfare measures, has reignited discussions on agricultural reforms in India, especially in relation to MSP and its impact on farming practices in Punjab.

Nature of the Current Farmers' Protest

• Leadership and Fragmentation: The current protest has seen fragmented leadership with different farmer unions participating, but there is no unified leadership as seen in previous movements. Tensions within these groups have emerged, complicating the resolution of the issue.
• Impact on Public Sentiment: The protest, while gaining support in rural areas, has caused disruption in urban areas with traders and commuters opposing the bandh and the blockades. This has led to significant logistical challenges.
• Role of Women in the Protest: Unlike previous movements where women played a central role, this protest has seen their participation diminish, raising concerns about the inclusivity and dynamics of the ongoing agitation.

Key Demands and the MSP Debate

• Demands for MSP Guarantee: The core demand of a legal guarantee for MSP has brought back the debate about fair pricing for farmers. Proponents argue it will ensure stable incomes, while critics worry it could limit government procurement of certain crops.
• Challenges in Implementing MSP: In states like Punjab, implementing a legal guarantee for MSP could lead to issues such as restricted procurement, particularly for crops like paddy and wheat, which dominate the region's farming landscape.
• Political Factors in the Protest: There is concern that political forces are using the protest for their own agendas, which complicates the path to resolving the underlying issues related to agricultural policy and farmer welfare.

Structural Challenges and Agricultural Reforms

• Need for Crop Diversification: Punjab’s farming is heavily reliant on wheat and paddy, but successive governments have failed to provide sustainable solutions for diversifying crops, contributing to environmental and economic challenges.
• Underdeveloped Agricultural Infrastructure: Despite its strong agricultural base, Punjab lacks critical infrastructure such as cold chains and food processing units, limiting farmers' ability to diversify and access better markets.
• Reform Implementation Challenges: While agricultural reforms are needed, successfully implementing these reforms requires addressing farmers' concerns, particularly around MSP, and ensuring that policies support long-term sustainability and economic viability.

Practice Question:

Q. Discuss the implications of a legal guarantee for Minimum Support Price (MSP) on Indian agriculture, with a focus on balancing farmer welfare, crop diversification, and infrastructural development.