Feb 4th 2025 Current Affairs

Index:

1. Amid Global Tumult, Rupee Breaches 87 Against Dollar

  1. Context
  • The Indian rupee depreciated 49 paise (0.6%), breaching the 87-mark against the US dollar.
  • Triggered by Donald Trump’s tariffs on Canada, Mexico, and China.
  • Reflects a broader meltdown in emerging markets and stock markets across Asia & Europe.
  1. Key Factors Behind Rupee Depreciation
  • Global Uncertainty: US trade policies affecting global markets.
  • Dollar Index Rise: The Dollar Index surged above 109.7, strengthening the US dollar.
  • Market Volatility: Impact on investor sentiment, affecting capital flows to emerging markets.
  • Import-Export Impact:
  • Costlier Imports: A weaker rupee increases the price of crude oil, electronic goods, etc.
  • Competitive Exports: A depreciated rupee makes Indian goods more attractive globally.
  1. Government & RBI Response
  • No Exchange Rate Targeting: India does not use exchange rate policy to influence trade.
  • Managing Volatility: The RBI’s focus is on reducing excessive fluctuations, not fixing a specific rupee value.
  • Emphasis on Competitiveness: Strengthening export competitiveness through quality improvement rather than currency manipulation.
  1. Economic Impact & Policy Implications
  • Inflation Risks: Costlier imports could lead to higher inflation in India.
  • Impact on Forex Reserves: RBI may intervene to stabilize currency fluctuations.
  • Trade Deficit Concerns: Higher import costs may widen India’s trade deficit.
  • Need for Economic Resilience: India must focus on boosting domestic manufacturing and diversifying export markets.
  1. Conclusion
  • Rupee depreciation is driven by global events beyond domestic control.
  • A balanced approach with monetary policy interventions and structural economic reforms is crucial for long-term stability.

Strengthening exports through better quality & competitiveness is India’s strategic focus.

2. India's Ethanol Production & Role of Maize

  1. Context
  • Union Minister Nitin Gadkari announced that India will achieve 20% ethanol blending with petrol within the next two months, ahead of schedule.
  • This requires 1,100 crore litres of fuel ethanol
  1. Sources of Ethanol Production
  • Sugar & Molasses: Around 400 crore litres will come from sugar and high-grade molasses.
  • Food Corporation of India (FCI) Rice: Govt reduced FCI rice price from ₹28 to ₹22.5 per kg for ethanol production.
  • Broken Rice & Maize: Used as alternative feedstock during the off-season.
  1. Growth in Ethanol Industry
  • Ethanol distillery capacity increased to 1,600 crore litres per year due to government incentives and demand.
  • India had 80 lakh tonnes of sugar stocks (October 2024), with 40 lakh tonnes projected for ethanol use.
  • Non-fuel ethanol comes from low-grade molasses (C Heavy), which doesn’t affect sugar production.
  1. Role of Maize in Ethanol Production
  • Increase in Maize Imports: Due to restrictions on sugar/molasses for ethanol, maize imports surged in April 2024.
  • Maize Demand Breakdown: Used for poultry feed, livestock feed, starch, human consumption (10%), and now ethanol.
  • Economic Impact:
  • From April-June 2024, maize imports worth ₹100 crore.
  • Total maize imports (April-Nov 2024) valued at $188 million (~₹1,500 crore).
  • 100 crore litres of ethanol saves ₹6,000 crore in oil imports.
  • Maize Cultivation Expansion:
  • Increased by 6 million tonnes in 3 years.
  • Grown in Karnataka, Madhya Pradesh, Maharashtra, Andhra Pradesh, Rajasthan, Bihar, Uttar Pradesh.
  • 2024-25 production projected at 42 million tonnes, with 9 million tonnes for ethanol.
  • Byproducts: DDGS (Distiller’s Dried Grains with Solubles) from ethanol can be used in poultry feed, ensuring minimal waste.
  1. Long-term Implications
  • Energy Security: Ethanol blending reduces India’s ₹10.5 lakh crore annual oil import bill.
  • Farmer Benefits: Ethanol ensures higher maize prices & stable income.
  • Food Security Risks: Increased maize use for ethanol could affect food supply and prices.

Sustainability Challenge: Need for balanced ethanol strategy to avoid excessive dependence on food crops.

3. India's Clean Energy Transition & Critical Minerals Framework

  1. Context
  • India is transitioning towards cleaner energy sources with increased budget allocations for Ministry of New & Renewable Energy from ₹1,535 crore (2015) to ₹32,626 crore (2025).
  • Need for a critical minerals framework that is just and equitable.

 

  1. Key Renewable Energy Initiatives
  • PM-KUSUM Scheme (2019): ₹34,422 crore allocated for off-grid solar irrigation pumps and grid-connected solar plants on fallow lands.
  • Challenges:
  • Slow adoption: Less than half a gigawatt of installations.
  • COVID-19 supply chain disruptions emphasized the need for energy security.
  • India’s Pledge (COP26, 2021): 50% of energy from renewables by 2030.
  1. Production-Linked Incentive (PLI) Schemes for Clean Energy
  • 2021 Budget Announcements:
  • ₹18,100 crore PLI scheme for advanced chemistry cell (battery) manufacturing.
  • ₹4,500 crore PLI scheme for solar photovoltaic modules (later increased to ₹19,500 crore in 2022).
  • Issues:
  • 40% Basic Customs Duty (BCD) on solar modules & 25% on solar cells to reduce Chinese dependency, but led to higher domestic prices and slowed installations.
  • India’s Energy Mix (2024): 46% renewables, 70% power still from coal.
  • Need for Grid-Scale Battery Storage to stabilize renewable energy supply.
  1. Critical Minerals & India’s Strategy
  • Dependence on China for Lithium-ion Batteries & Energy Tech is a concern.
  • 2024 Announcement: India to exempt 12 critical minerals & 35 capital goods from BCDs to encourage domestic production.
  • Need for a Critical Minerals Framework:
  • Sustainable & Ethical Sourcing.
  • Reducing Import Dependence.
  • Balancing Localization & Global Integration.
  1. Way Forward
  • Boosting Battery Storage Capacity to support renewable energy growth.
  • Encouraging Domestic Manufacturing through incentives & partnerships.
  • Strengthening Policy Framework for sustainable mineral extraction.

Diversifying Supply Chains to reduce reliance on China.

4. Legal Systems of Citizenship Acquisition

  1. Legal Principles of Citizenship
  • Jus Soli (Right of Soil): Citizenship is granted to anyone born within a country’s territory.
  • Countries following this: USA, Canada, Brazil, Mexico, Argentina, etc.
  • Jus Sanguinis (Right of Blood): Citizenship is determined by the nationality of one or both parents.
  • Countries following this: Germany, Egypt, South Africa, etc.

 

  1. Citizenship Laws in the U.S.
  • S. follows Jus Soli, established under the 14th Amendment (1868):
  • “All persons born or naturalized in the U.S., and subject to its jurisdiction, are citizens of the U.S.”
  • President Donald Trump issued an executive order restricting citizenship to children of U.S. citizens or Green Card holders.
  • A federal court in Washington temporarily stayed the order, calling it unconstitutional.
  1. Citizenship Laws in India
  • Governed by Citizenship Act, 1955.
  • Till July 1987: Jus Soli principle applied—anyone born in India was granted citizenship.
  • July 1987 – December 2004: At least one parent had to be an Indian citizen.
  • After December 2004:
  • Both parents must be citizens, or
  • One parent must be a citizen while the other is not an illegal immigrant.
  • Aimed at preventing citizenship to illegal immigrants from Bangladesh.
  1. Citizenship Amendment Act (CAA), 2019
  • Provides accelerated citizenship to Hindus, Sikhs, Buddhists, Jains, Parsis, and Christians from Pakistan, Afghanistan, and Bangladesh who entered India before December 31, 2014.
  • Excludes Muslims, leading to criticism for violating secularism.
  • Government’s justification: These groups face religious persecution in neighboring countries.
  • Criticism:
  • Religious-based citizenship policy.
  • Exclusion of persecuted Muslims (e.g., Ahmadis in Pakistan, Rohingyas in Myanmar).
  • Potential challenge in the Supreme Court.
  1. Key Takeaways
  • S. follows Jus Soli, while India has shifted towards Jus Sanguinis after 2004.
  • CAA 2019 introduces religion-based citizenship for the first time.

Debate on Secularism: Critics argue that the exclusion of Muslims contradicts India’s secular principles.

5. Uttarakhand UCC and Live-in Relationships

  1. Introduction
  • Uttarakhand Uniform Civil Code (UCC) introduced rules for registration of live-in relationships.
  • Couples must fill a 16-page form and obtain a certificate from a religious leader proving their eligibility for marriage.
  • Aimed at preventing fraud, exploitation, and crimes outside marriage.

 

  1. Definition of Live-in Relationship under UCC
  • Defined as a relationship resembling marriage, shared by a man and woman in a common household.
  • Only heterosexual relationships are recognized.
  • Religious leaders’ approval required to ensure no prohibited relationships (like close relatives).
  • Married individuals cannot be in another live-in relationship.
  • Consent is mandatory, and fraudulent claims can lead to punishment.
  1. How UCC Regulates Live-in Relationships
  • Couples must submit a “statement of live-in relationship” within one month of starting it.
  • If the relationship ends, they must submit a “termination statement”.
  • Registration is for record-keeping; however, the Registrar forwards the statement to police authorities.
  1. Required Documents for Registration
  • Proof of age (Parents informed if either individual is under 21).
  • Proof of residency (domicile certificate for Uttarakhand residents, employment ID for govt. employees, rental agreement, utility bill for others).
  • Passport, Aadhaar, or voter ID.
  • Affidavit on marital status (nullity of marriage proof if previously married).
  • Religious leader’s certificate confirming eligibility under religious customs.
  1. Benefits of Registering a Live-in Relationship
  • Provides legal protection to partners.
  • Maintenance rights: Women deserted by partners can claim maintenance under CrPC Section 125, similar to married women.
  • Establishes legitimacy of children born from live-in relationships (as per SC judgment of 1976).
  • Provides legal recognition and record-keeping to avoid fraud.
  1. Penalties for Non-Registration
  • Failing to register within 30 days can lead to legal consequences.
  • Punishment:
  • Magistrate can impose fines up to ₹10,000.
  • Repeated offenses can lead to fines up to ₹1 lakh or imprisonment up to 3 months.
  • False complaints can be punished with similar penalties.
  1. Key Takeaways
  • First state in India to introduce mandatory registration of live-in relationships.
  • Registration aims to protect women, prevent fraud, and ensure legal documentation.
  • Imposes stringent penalties for non-compliance, indicating strict enforcement.

Raises debates on privacy, individual rights, and legal intervention in personal relationships.

6. Other News headline

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