Important topics and their relevance in UPSC CSE exam for November 19, 2024. If you missed the November 18, 2024 UPSC CSE exam key from the Indian Express, read it here

FRONT PAGE

Delhi breathes poison

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment.

What’s the ongoing story: Delhi’s air, already at toxic levels, turned worse on Monday, turning the city into a gas chamber. The Air Quality Index (AQI) deteriorated from 441 on Sunday to 494, its worst-ever — on a par with the city’s most polluted day recorded in 2019.

Key Points to Ponder:

• What is Air Quality Index (AQI)?

• AQI is calculated using eight pollutants-True or False?

• The National AQI was launched by the Ministry of Environment, Forest and Climate Change (MoEFCC)-True or False?

• What are the pollutants that are taken into account in the calculation of AQI?

• What constitutes air quality as good + satisfactory, moderately polluted, poor, very poor, and severe?

• What are the key differences between PM2.5 and PM10 in terms of their health impacts and sources? How does AQI take these into account when determining air quality?

• What is GRAP?

• What is Stage 4 of the Graded Response Action Plan (GRAP

• Explain how seasonal variations affect the AQI levels in NCR region. Discuss the role of anthropogenic and natural factors in this regard.

• “Air pollution in Delhi is a reflection of poor urban planning and governance”-How far you agree with the statement in light of the Supreme Court’s intervention and GRAP measures.

• Critically examine the effectiveness of India’s National Clean Air Programme (NCAP) in improving AQI levels in NCR region.

• “Air pollution is not only an environmental issue but also a developmental challenge.” Discuss this statement with reference to India’s air quality management efforts and global commitments under agreements like the Paris Accord.

• Evaluate the role of citizen participation, technology, and policy in enhancing AQI levels in New Delhi.

• Critically evaluate the impact of Supreme Court-mandated restrictions like GRAP Stage 4 on public health and economic activities in Delhi.

Key Takeaways:

• Since 2015, when the Central Pollution Control Board started maintaining air quality data, the AQI has deteriorated to this level only once before, on November 3, 2019.

• A combination of meteorological factors, high emission load from Delhi’s own sources as well as stubble-burning has led to a drastic AQI increase. With temperatures dipping but winds remaining calm, pollutant concentration has only gone up over the past three days.

• According to experts, a small dip in temperature, especially during the day, has a significant impact on the AQI. High humidity, low temperatures and low wind speed aid the accumulation of pollutants.

• According to the R K Jenamani, head of IMD’s National Weather Forecasting Centre, “Westerly winds have been prevailing at a low speed of 5 to 10 kmph in the last 24 hours. These meteorological conditions are generally observed around this time… In the next 24 hours to 48 hours, there will not be much change in the weather conditions… No rain is expected either. There will only be an improvement if wind speeds increase.”

• Another IMD scientist said, “These atmospheric conditions are generally observed at this time but the stability in the atmospheric layer because of thermal inversion combined with low wind speed has trapped the pollutants which is why the pollutant concentration has been continuously high.”

• With the wind speed remaining under the 10 km per hour mark in recent days, pollutants have only accumulated. The conditions are unfavourable for dispersion. The primary pollutant, as per CPCB, was PM 2.5.

Do You Know:

• Air Quality Index is a tool for effective communication of air quality status to people in terms, which are easy to understand. It transforms complex air quality data of various pollutants into a single number (index value), nomenclature and colour.

• There are six AQI categories, namely Good + Satisfactory, Moderately polluted, Poor, Very Poor, and Severe. Each of these categories is decided based on ambient concentration values of air pollutants and their likely health impacts (known as health breakpoints).

• AQ sub-index and health breakpoints are evolved for eight pollutants (PM10, PM2.5, NO2, SO2, CO, O3, NH3, and Pb) for which short-term (up to 24-hours) National Ambient Air Quality Standards are prescribed.

• Based on the measured ambient concentrations of a pollutant, sub-index is calculated, which is a linear function of concentration (e.g. the sub-index for PM2.5 will be 51 at concentration 31 µg/m3, 100 at concentration 60 µg/m3, and 75 at concentration of 45 µg/m3). The worst sub-index determines the overall AQI.

• GRAP is a set of emergency measures that kick in to prevent further deterioration of air quality once it reaches a certain threshold in the Delhi-NCR region. Approved by the Supreme Court in 2016 and notified in 2017, the plan was formulated after several meetings the Environment Pollution (Prevention and Control) Authority (EPCA) held with state government representatives and experts.

• GRAP is incremental in nature and thus, when the air quality dips from ‘poor’ to ‘very poor,’ measures listed under both sections must be followed. Stage I of GRAP is activated when the AQI is in the ‘poor’ category (201 to 300), Stage II is when it’s in the ‘very poor’ category (301-400), Stage III is when the AQI is the ‘Severe’ category (401-450) and finally Stage IV is when it rises to the ‘Severe +’ category (more than 450).

• GRAP IV says: —Stop entry of truck traffic into Delhi (except for trucks carrying essential commodities/ providing essential services). All LNG/CNG/Electric/BS- VI Diesel trucks shall, however, be permitted to enter Delhi. —Do not permit Light Commercial Vehicles (LCVs) registered outside Delhi, other than EVs/CNG/BS- VI diesel, to enter Delhi, except those carrying essential commodities/providing essential services. —Enforce a strict ban on plying of Delhi registered BS-IV and below diesel-operated Medium Goods Vehicles (MGVs) and Heavy Goods Vehicles (HGVs) in Delhi, except those carrying essential commodities/providing essential services. —Ban construction and demolition activities, as in the GRAP Stage-III, also for linear public projects such as highways, roads, flyovers, overbridges, power transmission, pipelines, telecommunications, etc. —NCR state governments and the Delhi government may take a decision on discontinuing physical classes even for classes VI-IX and class XI, and conduct lessons in an online mode. —NCR State governments/Delhi government to decide on allowing public, municipal and private offices to work on 50% strength and the rest to work from home. —Central Government may make appropriate decisions on permitting work from home for employees in central government offices. —State Governments may consider additional emergency measures like the closure of colleges/ educational institutions and closure of non-emergency commercial activities, permitting running of vehicles on odd-even basis of registration numbers etc.

Other Important Articles Covering the same topic:

????Finding Solutions to Air Pollution in India: The Role of Policy, Finance, and Communities

????Why GRAP stage IV has been announced now, what is allowed under it

Previous year UPSC Prelims Question Covering similar theme: 1. In the cities of our country, which among the following atmospheric gases are normally considered in calculating the value of Air Quality Index? (UPSC CSE, 2016) 1. Carbon dioxide 2. Carbon monoxide 3. Nitrogen dioxide 4. Sulfur dioxide 5. Methane Select the correct answer using the code given below. a) 1, 2 and 3 only b) 2, 3 and 4 only c) 1, 4 and 5 only d) 1, 2, 3, 4 and 5

GOVT & POLITICS

Rio G20 taking forward people-centric decisions taken during India meet: PM

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story: Addressing the opening session of the G20 Summit in Rio de Janeiro on Monday, Prime Minister Narendra Modi praised Brazil’s agenda focused on sustainable development goals, noting that this approach highlighted the concerns of the Global South and took forward the people-centric decisions of the New Delhi G20 Summit.

Key Points to Ponder:

• What to you understand by the expression ‘Vasudhaiva Kutumbakam’, or ‘One Earth, One Family, One Future’?

• ‘Vasudhaiva Kutumbakam’ and Globalisation-Connect the dots?

• ‘Vasudhaiva Kutumbakam’ Sanskrit phrase found in which Hindu texts?

• G20-know in detail

• Which country is hosting the G20 Summit 2024?

• What is the theme of the G20 Summit 2024?

• Map Work-G20 member countries

• The G20 accounts for approximately what percentage of the world’s GDP?

• The G20 is an intergovernmental forum comprising 20 member nations, including the European Union-True or False?

• What is the concept of Global South?

• Global South and G20-connect the dots

• Discuss how “One Earth, One Family, One Future” aligns with India’s contributions to global issues such as climate change, digital governance, and inclusive growth.

• Critically evaluate the effectiveness of G20 commitments on climate finance and their implementation challenges.

• Discuss the significance of multilateral forums like the G20 in addressing contemporary global challenges.

• Discuss the role of the G20 in achieving Sustainable Development Goals (SDGs) with reference to the key commitments made during the 2024 Summit.

Key Takeaways:

• Prime Minister Narendra Modi underscored that the Indian G20 presidency’s call for “One Earth, One Family, One Future” continued to resonate at the Rio conversations.

• During the Summit (November 18 and 19), the Prime Minister put forward India’s position on various issues of global importance and build on the outcomes from the G20 New Delhi Leaders’ Declaration and Voice of the Global South Summits which were hosted by India in the past two years.

• Speaking about India’s initiatives to deal with hunger and poverty, Modi noted that India had pulled 250 million people out of poverty in the last 10 years and was distributing free foodgrains to 800 million people in the country.

• On India’s success in tackling food security, the PM emphasised that its approach based on ‘Back to Basics and March to Future’ was yielding results. He further elaborated on measures taken by India to foster women-led development.

• The PM also highlighted the steps taken by India to strengthen food security in Africa and elsewhere. In this regard, he welcomed the Brazilian initiative to establish a ‘Global Alliance against Hunger and Poverty’, underlining that the Global South was severely impacted by food, fuel and fertiliser crises created by the ongoing conflicts, and therefore, their concerns ought to be given primacy.

Do You Know:

• The G20, or the Group of Twenty, comprises 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, and the United States) and the European Union and African Union.

• Notably, the African Union, a grouping that represents 55 countries, was admitted as a new member of the G20 in June 2023.

• These members represent around 85 per cent of the global GDP, over 75 per cent of global trade, and about two-thirds of the world population. As a forum for international economic cooperation, it plays an important role in shaping and strengthening global architecture and governance on all major international economic issues.

• It was in late 1999 that the G20, with its current composition, was finally founded as an informal forum for Finance Ministers and Central Bank Governors of its members to meet annually.

• It is important to note that the G20 is an informal grouping. This means that unlike the United Nations (UN), it does not have a permanent secretariat or staff. Rather, the G20 presidency rotates annually among the members and is responsible for bringing together the G20 agenda, organising its workings and hosting summits.

• The presidency is supported by the “troika” – previous, current and incoming presidencies.

Other Important Articles Covering the same topic:

????G20 Summit: Everything you need to know

????As voice of Global South, India pushes for change in global order

Previous year UPSC Prelims Question Covering similar theme: 2. In which one of the following groups are all the four countries members of G20? (UPSC CSE 2020) (a) Argentina, Mexico, South Africa and Turkey (b) Australia, Canada, Malaysia and New Zealand (c) Brazil, Iran, Saudi Arabia and Vietnam (d) Indonesia, Japan, Singapore and South Korea

COP must note negative impacts of unilateral trade measures: India

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: 

• General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

• General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment.

What’s the ongoing story: Reacting strongly to suggestions that principles of ‘Just Transition’ be used to draw up climate action plans in the future, India Monday said “prescriptive top-down approaches” were violative of provisions of the UN Framework Convention on Climate Change and the Paris Agreement, and would never be acceptable to the developing countries.

Key Points to Ponder:

• What is India’s position at COP29?

• What is “principle of just transition”?

• What are the main pillars of “just transition”?

• What is Carbon Border Adjustment Mechanism (CBAM)?

• India opposed the inclusion of unilateral trade measures like the Carbon Border Adjustment Mechanism (CBAM) in climate action discussions at COP29-true or false?

• What is the primary concern of developing countries regarding unilateral trade measures like CBAM?

• Examine the implications of unilateral trade measures, such as CBAM, on global trade and the economies of developing nations. Discuss India’s opposition to such measures at COP29.

• India emphasized multilateralism at COP29 in tackling climate change. Analyse the challenges to multilateralism in the current global climate governance framework.

• India has consistently advocated for climate equity and common but differentiated responsibilities (CBDR) in international negotiations. Discuss how these principles are reflected in India’s stance at COP29.

• “Developed nations have a historical responsibility to provide climate finance and technology transfer to developing nations.” Evaluate this statement in the context of COP29 negotiations on climate finance and trade measures.

Key Takeaways:

• Insisting that development was the “overriding priority” of countries in the Global South, India’s Environment Secretary Leena Nandan, said if the developed countries indeed wanted to discuss ‘just transition’, they should be willing to discuss it in the broader sense including the inequities in the global climate discourse, and not just in the NDCs and the National Adaptation Plans (NAPs).

• At the start of the COP29 meeting, China, speaking on behalf of the BASIC (Brazil, South Africa, India, China) group of countries, had made a similar request and tried to get this issue included on the official agenda. The request was deflected at that time and was referred to more consultations with all parties.

• The developing countries complain that the costs of emissions reductions are in a way getting shifted to them.

• India also pointed out that significant barriers existed in the transfer of technologies related to clean energy, something that was against the provisions of Paris Agreement, and said COP29 must facilitate easy and affordable transfer of relevant technologies to the developing countries.

Do You Know:

• In the climate change context, ‘just transition’ refers to a shift to low-carbon economies in a fair, equitable and inclusive manner which does not put any segment of people at any particular disadvantage.

• India was not objecting to the principles of just transition, but the fact that countries were being asked to prepare their climate action plans in a certain way. Under the Paris Agreement, the climate action plans, called Nationally Determined Contributions (NDCs), are supposed to be “nationally-determined” and not forced upon by others.

• CBAM seeks to impose a tax on a certain class of goods imported in the EU, if the production of those goods had an emission footprint higher than the emission standards in EU. Ostensibly a step to control emissions, CBAM has the effect of making the goods from developing countries like China or India non-competitive in the European markets.

Other Important Articles Covering the same topic:

????An Expert Explains: The evolution and essentials of India’s climate policy

????Where are we at with countries’ climate contributions?

EXPRESS NETWORK

Report on dip in India forest cover devoid of facts: Govt

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment.

What’s the ongoing story: The Global Forest Watch (GFW) project monitoring data that said India had lost 2.33 million hectares of tree cover is “devoid of facts, ground reality and internationally accepted norms”, the Union Environment Ministry and the Forest Survey of India (FSI) have told the National Green Tribunal.

Key Points to Ponder:

• Who releases the Global Forest Watch report?

• What exactly Global Forest Watch report said?

• What are the key findings of Global Forest Watch (GFW)?

• What is the primary criticism raised by the Government of India regarding the Global Forest Watch report?

• Critically analyse the differences between India’s official data (e.g., ISFR) and international reports like the Global Forest Watch in assessing forest cover. Why are discrepancies in such reports significant?

• Discuss the role of satellite-based monitoring systems in environmental governance. How can data reliability and transparency be ensured in such systems?

• Examine the impact of urbanization and infrastructure development on India’s green cover. Suggest measures to balance development with environmental sustainability.

Key Takeaways:

• According to the GFW data, the “tree cover” was derived from satellite data and it does not discern the land use, as per its methodology. It relies on a standardised definition of “forest” adopted by the Food and Agriculture Organisation, which takes into account biophysical criteria — tree height, canopy cover, extent of trees — and land use criteria.

• The affidavit filed by the Union Environment Ministry and the Forest Survey of India (FSI) challenged the GFW’s findings that an average of 51 million tonnes of carbon dioxide equivalent per year was released into the atmosphere as a result of the tree cover loss in India. It said that the question of such CO2 emissions does not arise as there was no decrease in forest and tree cover.

• The affidavit said that the country’s forest cover was reported in FSI’s biennial India State of Forest Report (ISFR) and is based on internationally accepted criteria. However, it added, GFW’s parameter for forest cover was not based on these internationally accepted criteria, and it might have a different methodology and definition for assessment.

Do You Know:

• According to the GFW data released in April 2024, India lost 2.33 million hectares or 6% of tree cover between 2001 and 2023 — 60% of it in five Northeastern states of Assam, Mizoram, Arunachal Pradesh, Nagaland and Manipur. It attributed around 18% of the total tree cover loss to the decline in humid primary forests by 4.14 lakh hectares.

• The Global Forest Watch, which tracks forest changes in near real-time using satellite data and other sources, said the country lost 4,14,000 hectares of humid primary forest (4.1 per cent) from 2002 to 2023, making up 18 per cent of its total tree cover loss in the same period.

• Assam had the maximum tree cover loss at 324,000 hectares compared to an average of 66,600 hectares. Mizoram lost 312,000 hectares of tree cover, Arunachal Pradesh 262,000 hectares, Nagaland 259,000 hectares, and Manipur 240,000 hectares.

• According to the Food and Agriculture Organisation, the rate of deforestation in India was 668,000 hectares per year between 2015 and 2020, the second highest worldwide.

Other Important Articles Covering the same topic:

????India lost 2.33 million hectares of tree cover since 2000: Global Forest Watch

Previous year UPSC Prelims Question Covering similar theme: 3. With reference to the ‘New York Declaration on Forests’, which of the following statements are correct? (UPSC CSE 2021) 1. It was first endorsed at the United Nations Climate Summit in 2014. 2. It endorses a global timeline to end the loss of forests. 3. It is a legally binding international declaration. 4. It is endorsed by governments, big companies and indigenous communities. 5. India was one of the signatories at its inception. Select the correct answer using the code given below. (a) 1, 2 and 4 (b) 1, 3 and 5 (c) 3 and 4 (d) 2 and 5

EXPLAINED

Regulating fossil fuel, like nuclear weapons

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment.

What’s the ongoing story: Should fossil fuels be regulated the way nuclear weapons are? A group of governments and civil society organisations believe so, and are pushing the idea of a fossil fuel non-proliferation treaty (FF-NPT).

Key Points to Ponder:

• What is the Fossil Fuel Non-Proliferation Treaty?

• What is the primary objective of the Fossil Fuel Non-Proliferation Treaty?

• Analyse the similarities and differences between treaties targeting fossil fuels (e.g., the Fossil Fuel Non-Proliferation Treaty) and those targeting nuclear weapons (e.g., TPNW). How do their challenges compare?

• Discuss the implications of phasing out fossil fuels for developing economies. How can international cooperation address equity concerns in this transition?)

• The transition from fossil fuels is as critical for humanity as nuclear disarmament. Evaluate this statement in light of current geopolitical and environmental challenges.

Key Takeaways:

• “Just like 50 years ago, when the world used international treaties to defuse the threats posed by nuclear weapons, today, the world needs a Fossil Fuel Non-Proliferation Treaty to phase out fossil fuels, support dependent economies, workers and communities to diversify away from fossil fuels, ensure 100% access to renewable energy globally and promote a just transition that leaves no-one behind,” the Fossil Fuel Non-Proliferation Treaty Initiative says on its website.

• The global organisation is made up of civil society members, indigenous peoples, activists, academics, and experts.

• FF-NPT has been endorsed by 13 Small Island Developing States of the pacific, such as Vanuatu, Tuvalu, Tonga, Fiji, and the Solomon Islands, who were least responsible for global warming but are most vulnerable to its impact. Colombia, one of the largest coal producers and exporters globally, endorsed FF-NPT in December 2023, at COP28.

Do You Know:

• The FF-NPT proposes to make it legally binding on nations to end fossil fuel extraction, wind down existing production, and manage a just transition to renewable energy.

• It operates on three pillars — non-proliferation, which is a global cooperation model to end the expansion of coal, oil and gas production; a fair phase-out, which comprises an equitable plan to shut down existing fossil fuel production in a way that nations with the capacity and historical responsibility for emissions transition fastest and empowers others; and ‘just transition’, which calls for fast-tracking the adoption of renewable energy and economic diversification away from fossil fuels such that no worker, community or country is left behind.

Other Important Articles Covering the same topic:

????Freeze in finance deal, COP29 looks to G20 in Brazil for help

THE IDEAS PAGE

Neighbourhood first, in practice

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies II: India and its neighbourhood- relations.

What’s the ongoing story: Yogendra Yadav writes: What exactly is India’s “national interest” in our neighbourhood? Is it in our long-term interest to flex our muscles, browbeat our neighbours and create a zone of India’s dominance in our backyard?

Key Points to Ponder:

• Define India’s “Neighbourhood First” policy. How does it shape India’s approach toward its neighbouring countries?

• Discuss the key principles of the Gujral Doctrine and its relevance for India’s relations with its South Asian neighbours.

• Discuss the historical and cultural factors influencing India-Nepal relations. How have these factors impacted the bilateral relationship in recent years?

• Critically examine the challenges India faces in implementing its “Neighbourhood First” policy in the current geopolitical context.

• “India’s foreign policy in South Asia often displays a ‘big brother’ attitude.” Do you agree with this assertion? Provide evidence and suggest an alternative framework for fostering better regional ties.

• Nepal’s adoption of a “China-first” approach under K P Oli’s leadership reflects a shift in its foreign policy. Analyze the causes of this shift and its implications for India-Nepal relations.

• “India’s intervention in Nepal’s domestic politics has often been viewed with suspicion.” Critically evaluate this statement, highlighting its impact on India’s diplomatic credibility in Nepal.

• Balancing Power and Prudence-Know India’s Role in South Asia.

Key Takeaways:

• The Writer questions the effectiveness of India’s “Neighbourhood First” policy, highlighting that it appears to focus on asserting dominance rather than fostering genuine goodwill and cooperation.

• Leaders in neighbouring countries, including Nepal, Bangladesh, Maldives, and Sri Lanka, have demonstrated varying degrees of anti-India sentiment or policies perceived as unfavourable to India.

• Countries are increasingly leveraging China’s influence to counterbalance India, undermining India’s dominance in the region.

• Historical incidents, like the alleged 2015 blockade of Nepal, have left lasting scars on India’s relationships, particularly with landlocked neighbours. Perceptions of Indian interference in domestic politics have strained trust. For instance, Indian agencies are accused of having undue influence in Nepal’s political processes.

• India’s engagement with neighbours is criticized for being high-handed and overly focused on securing India’s interests without adequately respecting the sovereignty and sentiments of neighbouring nations.

• The Writer advocates for a shift from a “Neighbourhood First” to a “Neighbourliness First” policy, emphasizing: —Respect for sovereignty. —Non-interference in internal matters. —Trust-based relationships without expecting reciprocity.

Do You Know:

• The concept of the Neighbourhood First Policy came into being in 2008. It was conceived to bolster relations with certain priority countries such as Afghanistan, Bangladesh, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka.

Other Important Articles Covering the same topic:

????India’s neighbours at swearing-in: Shared stakes in stable ties

Previous year UPSC Mains Question Covering similar theme: 1. ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (2017)

RBI’s blind spots

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

What’s the ongoing story: Ishan Bakshi Writes: Perhaps after early December, the central bank leadership, which is trying to navigate a challenging economic and political environment, will change tack and be surer of the direction of interest rates and the currency

Key Points to Ponder:

• Explain the RBI’s inflation targeting framework and its significance for monetary policy.

• Discuss the relationship between food inflation and core inflation in the context of the wage-price spiral.

• Why has the RBI chosen to maintain interest rates despite concerns about economic growth?

• “Currency considerations, rather than inflation concerns, are likely to dominate RBI’s monetary policy decisions.” Critically analyse this statement in the context of recent economic trends

• Evaluate the challenges faced by the Indian economy due to weak household demand and subdued private-sector investment. Suggest measures to revive economic momentum.

• The pressure to cut interest rates is increasing, but such a move could have adverse effects on currency stability. Examine the trade-offs involved and suggest a balanced approach for the RBI.

Key Takeaways:

• Headline inflation is above the RBI’s upper threshold due to high food prices, particularly vegetables. Excluding vegetables, inflation remains subdued (3.3% in September, 3.6% in October).

• The recent surge is not seen as a long-term threat, with the rabi crop expected to bring price stability. Food price shocks must be large and persistent to affect core inflation.

• Labour markets remain weak, with muted wage growth and subdued firm input costs, indicating no evidence of a wage-price spiral.

• The economy is losing momentum, with GDP growth expected to fall below 7% (down from 8.2% last year), and nominal GDP growth projected below 10% for the second consecutive year.

• Household demand remains weak due to limited job opportunities, subdued wages, and high food inflation. Private-sector investment has yet to pick up.

• While the RBI remains optimistic about growth, the government has acknowledged signs of economic strain in urban demand and specific sectors.

• The rupee is under strain due to foreign capital outflows ($14 billion in two months) and rising U.S. interest rates, making rate cuts risky.

• A weaker rupee could improve export competitiveness but pose risks for corporations with significant foreign currency loans.

• U.S. monetary policy and expectations of higher tariffs under a second Trump presidency are influencing global and domestic interest rate dynamics.

• The RBI faces a trade-off between supporting growth through rate cuts and stabilizing the currency to prevent further capital outflows.

Do You Know:

• Food inflation refers to the increase in prices of food items. Understanding the factors that contribute to this phenomenon is crucial, especially in the context of increasing food inflation. In India, both supply and demand factors influence food inflation; however, it is primarily driven by supply-side issues.

• According to Udit Misra– “In rural areas, food inflation tends to have a much higher bearing on overall inflation while it accounts for a smaller bit in the urban areas. “Vegetable inflation contributed the most to overall headline inflation. In rural and urban areas vegetable inflation was almost the same at 36 per cent and 35.9 per cent, respectively. But, the sting is different. Vegetables have a weight of 7.5 per cent in rural CPI and 4.4 per cent in urban CPI. Due to the relatively larger importance of vegetables in rural consumption, it contributed to 45.8 per cent of the headline rural inflation. In contrast, vegetable inflation only contributed 31.3 per cent to headline urban inflation,” explains the CMIE note.

Other Important Articles Covering the same topic:

????ExplainSpeaking: How food inflation hits rural India more than urban areas

????UPSC Issue at a Glance | Food Inflation: 4 Key Questions You Must Know for Prelims and Mains

Previous year UPSC Prelims Question Covering similar theme: 4. In India, which one of the following is responsible for maintaining price stability by controlling inflation? (UPSC CSE, 2022) (a) Department of Consumer Affairs (b) Expenditure Management Commission (c) Financial Stability and Development Council (d) Reserve Bank of India’

ECONOMY

Convergence on small reactors: Why a Trump administration could be a net positive for India’s SMR push

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination: 

• General Studies II: Effect of policies and politics of developed and developing countries on India’s interests.

• General Studies III: Science and Technology- developments and their applications and effects in everyday life.

What’s the ongoing story: On trade and economy, the points of convergence between India’s business interests and Trumponomics are beginning to get comprehensible. The one potential area of mutual interest could be Small Modular Reactors, something New Delhi is increasingly viewing as an area of strategic interest, and president-elect Donald Trump appears keen to push.

Key Points to Ponder:

• How do Small Modular Reactors (SMRs) align with India’s clean energy transition goals? What are the potential benefits and challenges for India in adopting SMRs for its future energy needs?

• Analyze the role of Small Modular Reactors (SMRs) in the geopolitics of nuclear energy, specifically focusing on India’s strategic and diplomatic interests in collaborating with the U.S. and Russia.

• Evaluate the technological and regulatory hurdles in India’s nuclear sector that might impact its participation in the global Small Modular Reactor (SMR) market. How can India overcome these challenges?

• “India’s engagement with Small Modular Reactors (SMRs) is not just a matter of energy security, but also a strategic foreign policy initiative.” Discuss the implications of this statement in the context of India’s relationship with the U.S., Russia, and China. (250 words, 20 marks)

• Critically assess the potential for collaboration between India and the U.S. in the field of Small Modular Reactors (SMRs), considering both the technological and legal challenges outlined in the article.

• Examine the role of Small Modular Reactors (SMRs) in the future of global nuclear energy, and India’s positioning as a potential leader in this emerging technology. What steps should India take to ensure it maximizes its benefits?

Key Takeaways:

• India is increasingly focusing on Small Modular Reactors (SMRs) as part of its clean energy transition.

• SMRs are viewed as a potential area of mutual interest between India and the U.S., especially under President-elect Donald Trump’s administration.

• SMRs, with capacities ranging from 30MWe to 300MWe per unit, address key challenges of nuclear power: they are smaller, safer, faster to build, and less expensive than traditional large reactors.

• The most common type of SMR is light water reactors, which align with existing nuclear regulations, making them easier to design and approve.

• India seeks to position itself as a credible alternative to other global players in SMR technology, building on its history of operating smaller reactors.

• China is aggressively pursuing SMR development to position itself as a global leader, similar to its success in the electric vehicle sector.

• The U.S. and India, while having their own strengths, face challenges in competing with China in this space due to technological constraints and high manufacturing costs.

• India faces technological constraints with its outdated heavy water reactor technology, which is not compatible with the more common light water reactor used in SMRs.

• India’s Civil Liability for Nuclear Damage Act (2010) is seen as an obstacle by foreign companies due to its requirement for operators to bear liability for nuclear accidents.

• The U.S. faces challenges due to ‘10CFR810’ authorization, which allows American companies to export nuclear technology but restricts them from manufacturing or designing nuclear equipment in India.

Do You Know:

• The International Atomic Energy Agency (IAEA), an international body that advises governments on the transition to clean energy, says nuclear energy has to more than double by 2050 if the world has any chance of reaching net zero. The problem with nuclear power currently is that it is big and expensive, takes too long to build and could cause civilisation-ending disasters if something were to go wrong.

• SMRs — small reactors with a capacity of 30MWe to 300 MWe per unit — promise a workaround on most of those concerns. This is especially relevant in the wake of surging power demand from technology companies, given the massive incremental electricity requirement coming in from AI machine learning applications and data centres.

• While lots of different types of SMRs are being developed, there are currently four main types, each using a different coolant to manage the extreme heat of a nuclear fission reaction — light water, high temperature gas, liquid metal, and molten salt.

• The most common type, though, are light water reactors, which are very similar to traditional nuclear power plants being built in Russia, France and the US that are all water-cooled. That makes light water SMRs much easier to design and get approved, as today’s nuclear regulations are mostly based on water-cooled reactors.

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