GS Analyst: Daily Current Affairs

Recent developments in the global energy market, especially in the wake of the Russia-Ukraine war, U.S. policy changes, and the EU's energy strategy, have significantly altered the global supply and demand dynamics for oil and natural gas. As the world adjusts to these changes, India’s energy security, economic growth, and transition to cleaner energy are at stake.

Key Developments

• S. Energy Policy: President Trump’s executive orders in his second term aimed at boosting U.S. oil and gas production, extending the use of fossil fuels and increasing exports. This aligns with his withdrawal from the Paris Climate Agreement.
• Russia-Ukraine War Impact: Russia halted gas exports to the EU in January 2024. The EU cut its reliance on Russian gas by 80%, reducing imports from 132 bcm in 2021 to 26 bcm in 2023, replacing it with LNG from the U.S. and Norway. This pushed LNG prices up 2-3 times normal levels.
• S. as Global LNG Leader: The U.S. became the world's top LNG exporter in 2023, supplying 114 bcm, with 56.2 bcm directed to the EU. This increased U.S. influence in global energy markets.

What is LNG?

• Liquefied Natural Gas (LNG) is natural gas cooled to a liquid state, making it easier to transport globally. Unlike pipeline gas, LNG can be shipped anywhere.
• India’s LNG Imports: In 2024, India became the world’s fourth-largest LNG importer, accounting for 7% of global LNG imports.
• The growth in demand was primarily driven by the industrial and oil refining sectors, followed by residential, commercial, and transport sectors.
• India aims to increase natural gas's share in its energy mix to 15% by 2030, up from under 7% currently.
• Qatar remains India’s largest supplier of LNG, the United Arab Emirates (UAE) is second, and the United States (US) is a close third. Together, they constitute nearly 80 per cent of our gas imports. Offtakes were slightly up from all three nations in 2023.
• Reasons for Increasing LNG Imports:
  • Slowing Domestic Production
  • Rising Demand for Natural Gas
  • Increased temperatures and higher electricity consumption

Impact on Major Regions

• European Union: The EU reduced Russian gas imports but faced economic slowdown due to high energy prices. Germany's economy contracted in 2023, and growth is projected at zero in 2024.
• Russia: Russia lost its largest energy export market (the EU), leading to a sharp decline in energy exports, from USD 193 billion in 2021 to USD 55 billion in 2023.
• Developing Countries: Countries like India, Pakistan, and Bangladesh, which depend on LNG imports, face higher costs, slowing their transition to cleaner energy. Gas price hikes also impact food prices due to increased fertilizer costs.
• S. and LNG Export Growth: U.S. LNG exports have boosted its geopolitical role, benefiting from high prices. The U.S. is now a dominant player in global energy markets.

Global Impact

• LNG Market: Liquefied natural gas (LNG) allows flexible global trade, which benefits exporters like the U.S., Australia, and Qatar.
• Sanctions on Russia and Iran: Both countries, with large gas reserves, are excluded from the LNG market due to U.S. sanctions, limiting their global energy influence.

The Anthropological Survey of India (AnSI), in collaboration with Tribal Research Institutes (TRI), completed a three-year study and for the first time comprehensively categorized 268 denotified, semi-nomadic, and nomadic tribes that were not classified previously.

Brief Background

• After the Criminal Tribes Act of 1924 was repealed in August 1949, certain communities that were labeled as “criminal” were denotified.
• However, successive government commissions (including the Kalelkar Commission, Mandal Commission, Renke Commission, and Idate Commission) struggled to properly classify these tribes.
• The Idate Commission (2017) had already identified 267 unclassified communities but was unable to finalize their categorization.
• The Prime Minister’s Office set up a Special Committee in 2019 to push forward this classification process, which tasked AnSI and TRI with the study, leading to the submission of the final report in August 2023.

Key-details of the Study:

• The AnSI-TRI study found and categorized 268 communities that had never been classified before.
• Recommendations: Of these, 179 communities have been recommended for inclusion in the Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) Among them, 85 communities have never been classified before.
• 63 Communities Untraceable: Some communities were not traceable, meaning they had likely merged into other communities, changed their names, or migrated.

What is the need for categorization?

• Unresolved Classification: Over the years, many communities had been incorrectly classified or left unclassified. Early census practices by colonial authorities often confused tribes with castes.
• Government Welfare Schemes: Without proper classification, many communities could not benefit from government schemes meant for SCs, STs, or OBCs, leading to social and economic marginalization.
• Parliamentary Standing Committee: In December 2022, the committee highlighted the delay in classifying these communities and stressed that it exacerbated their suffering, preventing them from accessing welfare schemes.
• Debate on Classification:

• • One View: Some advocate completing the classification process to ensure these tribes benefit from reservations and government schemes under SC, ST, or OBC categories.
  • Alternative View: Others suggest creating a separate classification for denotified tribes, possibly as a new Schedule in the Constitution, instead of categorizing them under SC, ST, or OBC.

Impact:

• If the recommendations are accepted, it will simplify the process of including these communities in state-level welfare schemes.
• This will also aid policy formulation for their upliftment and ensure they are properly integrated into social and economic benefits.

DeepSeek, a new AI model from China, has gained significant attention for surpassing other leading models like ChatGPT, Gemini, and Claude AI in performance. It has risen to become the top-rated free app on Apple's App Store in multiple countries, sparking interest in the tech industry and challenging the dominant position of US-based AI firms.

What is DeepSeek?

• DeepSeek is developed by a Hangzhou-based research lab, founded in 2023 by Liang Wenfeng, an engineer with expertise in AI and quantitative finance.
• Model: Based on the DeepSeek-V3 model, it outperforms OpenAI’s ChatGPT and offers cost-efficient, open-source AI services with unlimited free usage.
• Notable Release: The R1 release of DeepSeek rivals industry leaders like OpenAI and Anthropic but stands out for being more affordable and offering open-source access.
• Features and Differentiation

• Affordability: Unlike OpenAI and Meta, which rely on expensive hardware and resources, DeepSeek uses affordable AI hardware to reduce costs while maintaining high performance.
• Transparency: DeepSeek's chatbot is unique for explaining its reasoning before responding, making it more transparent compared to models like ChatGPT.
• Open-Source: DeepSeek's open-source approach allows developers to build on the platform, making it more accessible and flexible than other proprietary systems.

Impact on the AI Market

• Breakthrough despite Restrictions: DeepSeek has succeeded despite the US restrictions on semiconductor exports to China, limiting China’s access to advanced AI chips.
• Disruption: The model's success has caused stock prices of major US companies like Nvidia, Meta, and Microsoft to drop, as DeepSeek's low-cost alternative poses a potential disruption to the AI market.

The 14th Annual Status of Education Report (ASER) has been released by the Pratham Foundation, a non-governmental organisation. The 2024 report presents a snapshot of learning outcomes among children in rural areas, showing improvements in basic literacy and arithmetic skills in the aftermath of the pandemic.

Key Findings of ASER 2024

• Improvement in Basic Literacy and Arithmetic
  • Class 3 Students: The percentage of Class 3 children who can perform basic arithmetic, such as subtraction, has risen to 7% in 2024, up from 25.9% in 2022, and 28.2% in 2018 (pre-pandemic).
    • The rise in basic arithmetic skills is more pronounced in government schools, which saw a 7% increase compared to the 4% increase in private schools.
  • Class 5 Students: The percentage of Class 5 students who can read a Class 2-level text increased to 8% in 2024, up from 38.5% in 2022 and close to the 44.2% level in 2018.
    • Private schools showed a slower recovery in literacy levels, with 3% of Class 5 students reading at Class 2 level in 2024, compared to 65.1% in 2018.
  • The government's ambitious NIPUN Bharat Mission (National Initiative for Proficiency in Reading with Understanding and Numeracy), launched in 2021, is expected to be the reason behind this transitional shift.
• Impact of NEP 2020 on Education: The improvements in foundational skills, especially in arithmetic and reading, are attributed to the focus of the National Education Policy (NEP) 2020 on foundational skills.
• Increased School Enrollment and Attendance
  • Government Schools: There has been a significant increase in enrollment in government schools, reversing the trend of rising enrollment in private schools during the COVID-19 pandemic.
  • Student Attendance: The average student attendance in government elementary schools increased from 4% in 2018 to 75.9% in 2024.
  • Teacher Attendance: Teacher attendance also improved, rising from 1% in 2018 to 87.5% in 2024.
• Access to Technology: The report revealed that nearly 90% of teenagers (ages 14-16) in rural areas have access to smartphones, with 2% knowing how to use them. However, there is a gender gap in smartphone ownership, with 36.2% of boys owning smartphones compared to 26.9% of girls.
  • Interestingly, while 76% of teenagers use smartphones for social media, only 57% use them for education-related activities, pointing to a significant gap in the use of technology for educational purposes.
• Multigrade and Small Schools: There has been a notable rise in the prevalence of multigrade classes, where children from different grades are taught together. By 2024, two-thirds of Class 1 and Class 2 classrooms in elementary schools were multigrade.
  • The percentage of government primary schools with fewer than 60 enrolled children rose from 44% in 2022 to 1% in 2024, indicating a rise in smaller schools.
• Pre-Primary School Enrollment
  • States with High Enrollment Rates in Pre-Primary Education: The report highlights that Karnataka, Gujarat, Maharashtra, Kerala, and Nagaland have shown high enrollment rates (above 90%) for children aged five in pre-primary schools.

The Nicobarese tribe, indigenous to the Nicobar Islands in the eastern Indian Ocean, has long been a subject of interest for anthropologists due to their distinct genetic makeup and isolation from mainland populations. Recent studies have revealed new insights into their genetic origins, particularly their ties to Southeast Asian populations.

Key Findings

• Genetic Link with Southeast Asia: The Nicobarese are found to share a close genetic relationship with the Austroasiatic-speaking populations of Southeast Asia, specifically the Htin Mal communities of Thailand-Laos.
  • This marks the first time detailed genetic analysis has been conducted to establish this connection.
• Migration to Nicobar Islands: According to the study, the Nicobarese migrated to the Nicobar Islands around 4,500 to 5,000 years ago, during a period when Southeast Asians were already practicing agriculture.
  • Both men and women from these Southeast Asian communities migrated to the islands, bringing with them agricultural practices that led to population growth and territorial expansion.
• Preservation of Genetic Lineage: The Nicobarese tribe has remained largely isolated from external influences for thousands of years, allowing them to preserve their genomic origins, language, and cultural identity.
  • This isolation has been crucial for maintaining their distinct genetic makeup, which has been studied using stable DNA markers that have remained unchanged over millennia.

The Himachal Pradesh government approved a pilot project for the cultivation of cannabis or hemp in the state. This move comes amid growing global recognition of the agricultural, medicinal, and industrial value of hemp.

About Cannabis

• The word “cannabis” refers to all products derived from the plant Cannabis sativa.
  • Marijuana refers to parts of or products from the plant Cannabis sativathat contain substantial amounts of tetrahydrocannabinol (THC).
• The plant contains over 500 chemical substances.
• Cannabinoids are a group of substances found in the cannabis plant. The main cannabinoids are THC and cannabidiol (CBD). THC is a psychoactive substance, while CBD is not.
• Its cultivation had been banned under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, which restricted its legal farming across the country.
• Despite this, illegal cannabis farming continues in several districts of Himachal Pradesh.
• Other states with controlled permission for cultivation: Uttarakhand, Uttar Pradesh, Madhya Pradesh, Jammu & Kashmir, and

After successfully supplying the BrahMos missile to the Philippines, India has now finalized a Rs 3,800 crore (approximately USD 450 million) deal to export the supersonic cruise missile to Indonesia.

About BrahMos Missile

• BRAHMOS is a supersonic cruise missile developed through a joint venture between India’s Defence Research and Development Organisation (DRDO) and Russia’s NPO Machinostroyenia.
• It is named after the Brahmaputra River of India and the Moscow River of Russia.
• Versions and Range: The base version (BRAHMOS) had a range of 290 km. The BrahMos Extended Range (ER) version has an enhanced range of 800-900 km.
  • The missile is available in sea-launched, land-launched, and air-launched configurations.
• Features:
  • Speed: It travels at 2.8 Mach (nearly three times the speed of sound).
  • Warhead: It carries a 200-300 kg conventional warhead.
  • Altitude: It can cruise at altitudes up to 15 km, and can also go as low as 10 meters.
  • Launch Platforms: It can be launched from sea, land, and air (from platforms like Su-30MKI fighter aircraft).
  • Indigenous Content: The missile has an increasing indigenous content, with key components like seeker and booster designed by DRDO. As of 2023, 75% indigenisation has been achieved.
• Capabilities:
  • Pinpoint Accuracy: The missile is known for its precision and ability to strike targets with high kinetic energy on impact.
  • Fire and Forget: The missile operates on a fire-and-forget principle, meaning it can hit the target without external intervention after launch.
  • Low Radar Signature: Difficult to intercept due to its low radar signature and supersonic speed.
• In April 2024, India delivered the first batch of BrahMos missiles and launchers to the Philippines Marine Corps as part of its earlier deal. 

Astronomers have recently detected incredibly fast winds on an exoplanet called WASP-127b. These winds are the fastest ever observed on any known planet. The winds reach speeds of 33,000 km/h around the equator of this planet. For comparison, the fastest winds on Earth’s jet stream move at about 442 km/h, and Neptune's high-altitude winds reach about 2,000 km/h.

What is WASP-127b?

• WASP-127b is a hot Jupiter type of exoplanet.
• It is located 520 light-years away from Earth in our Milky Way galaxy.
• The planet has a diameter 30% larger than Jupiter, but only 16% of Jupiter's mass, making it one of the puffiest planets ever discovered.
• It orbits its star every 4 days and is positioned very close to the star—only about 5% of the distance between Earth and the Sun.
• Characteristics of WASP-127b
  • Atmosphere: The atmosphere of WASP-127b is made mostly of hydrogen and helium, with traces of more complex molecules like carbon monoxide and water.
  • Temperature: The atmosphere is extremely hot, with temperatures reaching 2,060°F (1,400 K). The planet has one side that always faces the star (day side) and the other side that faces away from the star (night side).
  • No Solid Surface: Being a gas giant, WASP-127b does not have a solid surface. Instead, its atmosphere gets denser and more pressurized the deeper you go.
• Cause of the High-Speed Winds: The incredibly fast winds on WASP-127b are largely driven by the intense radiation from the star the planet orbits. The star heats the planet’s day side, which in turn creates strong atmospheric dynamics. This heat, combined with other factors, causes fast-moving winds to circle the planet at its equator.
• Comparison to Other Planets: While other exoplanets have shown high winds, WASP-127b is unique for having winds that circle the entire planet at such high speeds. Other planets have had high winds flowing from their day side to their night side, but nothing compares to the supersonic winds around the entire planet’s equator.

The Asian Waterbird Census 2025 has been recently conducted in the Coringa Wildlife Sanctuary (CWS), located in the Godavari estuary of Andhra Pradesh. CWS is a crucial feeding ground for migratory birds in the Asian Flyway.

Key Findings:

• Bird Diversity: A total of 106 bird species were recorded, including 70 migratory species. 39,725 birds sighted in the sanctuary and adjoining wetlands.
• Endangered and Vulnerable Species:
  • 3 endangered species: Black-bellied Tern, Great Knot, and Indian Skimmer.
  • 11 species were categorized as Near Threatened, and the Common Pochard was the only Vulnerable species.
• Migratory Birds: Birds, such as the Great Knot, migrated from regions like Siberia, Russia, China, and Mongolia for winter.
  • Bhairavapalem and Etimoga are key locations for these migratory species, with the Great Knot sighted at these mudflats.
• Global Tracking: A Great Knot, tagged in Russia, traveled 7,500 km and was spotted in Bhairavapalem and Etimoga.

The debate over the H-1B visa program in the United States has intensified, particularly regarding skilled immigration’s impact on job creation and innovation. Research suggests that restricting skilled immigration harms U.S. job creation, while skilled immigrants contribute significantly to technological innovation and economic growth. Countries like India and Canada are also capitalizing on skilled migration, further highlighting the importance of global talent mobility.

Impact of Skilled Immigration on Jobs and Innovation

• H-1B Visa Restrictions and Job Creation: Studies show that limiting H-1B visas does not result in more jobs for native workers. Instead, companies increase foreign hiring or move operations abroad, reducing job creation in the U.S.
• Economic Contribution: Each H-1B visa holder creates an average of 1.83 additional jobs for native-born American workers. Immigrant-founded companies have historically attracted significant investments and created more jobs than native-founded firms.
• Wages and Productivity: Hiring foreign STEM workers increases native wages and overall productivity. A 10% increase in foreign STEM workers correlates with a 0.5% to 0.6% rise in native wages and more patents per capita.

The ‘Brain Circulation’ Phenomenon

• India’s Role: India receives around 70% of H-1B visas annually. The migration of skilled workers has been viewed as "brain circulation" rather than a drain, enhancing India’s tech sector and innovation ecosystem.
• Global Talent Competition: Restricting skilled immigration in the U.S. does not protect jobs but exports them. Canada’s open immigration policies have helped it attract tech companies, showing the impact of skilled migration on maintaining technological leadership.
• Mutual Benefits of Migration: Skilled migration benefits both sending and receiving countries, fostering innovation and economic growth globally.

Solutions and Policy Recommendations

• Visa Flexibility: The H-1B visa system needs flexibility, with caps adjusted based on market demands. Fixed caps create artificial scarcity and limit job creation potential in the U.S.
• Fast-Tracking Critical Skills: There should be fast-track processing for critical skills and pathways for entrepreneurs who can contribute to job creation and innovation.
• Labour Market Modernisation: The U.S. needs transparent wage determination systems and real-time analytics to match labor market demand and supply effectively, ensuring seamless integration of foreign talent.

Practice Question

Q. Discuss the economic and social implications of skilled immigration, particularly in the context of the H-1B visa program in the United States. How can migration policies be reformed to enhance innovation and job creation in knowledge economies?

The latest Annual Status of Education Report (ASER) highlights improvements in foundational literacy and numeracy (FLN) among primary and secondary students, marking a recovery in learning outcomes after the disruptions caused by the Covid-19 pandemic. The report underlines that the New Education Policy (NEP) 2020’s focus on foundational learning is yielding positive results, especially in government schools.

Impact of the Covid-19 Pandemic on Education

• Covid-19-induced Learning Loss: The prolonged school closures during the pandemic led to a significant learning gap, particularly among underprivileged children who lacked access to digital education.
• Widening Learning Gap: The Economic Survey had highlighted that the pandemic worsened disparities in educational outcomes, making it more urgent to address learning losses.
• Recovery Post-Pandemic: The ASER report notes that the foundational skills of schoolchildren have improved since the pandemic, with primary and secondary students now showing better skills than before the pandemic.

Role of NEP 2020 and Teacher Training

• Teacher-Centric Approach: The NEP 2020 has emphasized the importance of teacher training in foundational skills, and states have rolled out large-scale programs to train educators in these skills.
• Impact on Classroom Practices: The ASER report highlights that teachers have become more empathetic to the needs of younger students, contributing to a better learning environment in classrooms.
• Training Still in Progress: While teacher training is making an impact, the ASER survey stresses that there is still much work to be done to improve post-training support and classroom-specific solutions for teachers.

Challenges and Future Concerns

• Contradiction between FLN and Syllabus Completion: A key challenge identified by the ASER report is the tension between ensuring foundational literacy and numeracy (FLN) and completing the prescribed syllabus, with teachers often focusing on the latter.
• Long-term Impact of Foundational Learning: Over 100 million children are currently in the foundational learning stage, and their future education will be crucial for India’s demographic dividend.
• Urgency of Policy Action: While positive results are noted, the ASER report urges policymakers to focus on the remaining challenges and invest in ensuring long-term improvements in educational outcomes.

Practice Question

Q. Critically analyze the impact of the New Education Policy (NEP) 2020 on foundational learning outcomes in India, and discuss the challenges that remain in ensuring universal foundational literacy and numeracy."

The Ministry of External Affairs (MEA) budget has seen a significant increase in 2024, but still remains one of the least-funded Ministries, with only 0.4% of India’s total expenditure allocated. As India seeks to position itself as a global leader with growing regional and international commitments, a larger MEA budget is crucial to effectively pursue these goals, particularly in foreign aid, regional integration, and strengthening diplomatic capacities.

Budget Allocation and Global Ambitions

• MEA’s Budgetary Shortfall: The MEA budget, accounting for just 0.4% of total national expenditure, is insufficient to meet India’s growing global ambitions. The Parliamentary Standing Committee recommended raising it to 1%, signaling the need for greater investment in foreign policy execution.
• Global Leadership and Diplomacy: India’s vision of becoming a global leader requires enhanced diplomatic and financial resources to sustain partnerships, lead initiatives like the International Solar Alliance, and strengthen ties with regional partners like the ASEAN and Quad.
• Partner Expectations: Countries expect India to deliver on projects and provide diplomatic follow-through. The MEA’s limited resources are strained when fulfilling these expectations, particularly amidst challenges like China’s growing influence and regional instability.

Foreign Aid, Loans, and Shifts in Policy

• Foreign Aid Trends: India’s foreign aid has seen a decline of 10%, while loans to foreign countries have increased by 29%. India is shifting from grants to Lines of Credit (LoCs), particularly in South Asia, including significant funding to Bhutan and Bangladesh.
• Neighbourhood Focus: The majority of India’s foreign aid is directed to its neighbours, with Bhutan continuing to be the largest recipient due to historical ties and energy cooperation. Aid to Bangladesh has decreased, while Sri Lanka has seen a significant increase in its allocation.
• Implications of LoCs: LoCs provide sustainable infrastructure financing but require strong oversight, placing additional pressure on the MEA’s diplomatic machinery and coordination capabilities.

Institutional Capacity and Resource Allocation

• Training and Human Resources: The MEA’s training budget grew by 30%, but overall resource allocation for building institutional capacity remains insufficient. The Indian Foreign Service (IFS) remains understaffed, and coordination challenges impede progress.
• Cultural Diplomacy and Missions: The MEA’s budget for foreign missions, cultural diplomacy, and training programs saw a modest 7% increase. However, key academic institutions like Nalanda University and South Asian University faced cuts of 20% and 22%, respectively.
• Need for Research and Digitisation: The MEA’s push for declassification and digitisation of its records is critical for enhancing research capabilities. Such efforts could provide valuable insights into India’s diplomatic history, improving both academic research and current policy-making.

Practice Question

Q. Critically examine the current budget allocation for India’s Ministry of External Affairs (MEA) and its implications on the country's foreign policy, regional engagement, and global leadership ambitions.