24 January 2025 : Daily Current Affairs

 1. Trump’s Tariff Strategy: Implications for Global Trade and India’s Preparedness in a Shifting Landscape

(Source – Indian Express, Section – Explained- Page No. – 15)

Analysis of the news:

Understanding Tariffs and Their Implications

Definition of Tariffs

• A tariff is a tax imposed by a government on imported goods. 
• For instance, if Chinese cars cost $100 compared to $120 for US-made cars, tariffs can alter this price dynamic.

Impacts of Tariffs

1. Domestic manufacturers benefit from reduced foreign competition, potentially increasing sales and jobs.
2. Trade deficits may reduce as imports decline.
3. Consumers face higher prices, leading to inflation and reduced purchasing power.

Reasons for Imposing Tariffs

1. Protect Domestic Industries: Tariffs make imported goods more expensive, shifting demand to domestic alternatives.
2. Increase Government Revenue: Moderate tariffs can generate tax income without eliminating imports.
3. Encourage FDI: High tariffs may compel foreign manufacturers to set up production facilities domestically, creating local jobs.

Retaliatory Responses to Tariffs

Countries affected by tariffs can retaliate in several ways:

• Absorbing Tariffs: Exporters may maintain low prices to retain market share, accepting losses temporarily.
• Passing on Costs: Exporters may increase prices, shifting the tariff burden to consumers.
• Trade Rerouting: Goods may be rerouted through free-trade agreement (FTA) countries to avoid tariffs.
• Trade War: Countries may impose counter-tariffs or devalue their currency to offset tariff impacts.

Consequences of Tariffs

While tariffs aim to protect domestic industries, they often have unintended consequences:

1. Higher Consumer Prices: Domestic consumers bear the cost of tariffs, reducing affordability.
2. Market Distortions: Domestic manufacturers may raise prices without improving quality, exploiting reduced competition.
3. Inflation Risks: Higher import costs contribute to overall price inflation.
4. Limited Trade Deficit Gains: Import reductions from one country may be offset by increased imports from others.

Evaluating Trump’s Previous Tariff Policies

Impact on US-China Trade

• US imports from China declined by $81.56 billion between 2017 and 2023, reducing the bilateral trade deficit.
• However, the broader US trade deficit widened from $516 billion in 2017 to $784 billion in 2023 as imports shifted to other countries like Mexico and Canada.

Global Supply Chain Resilience

• China increased its global exports by $1.1 trillion during the same period, solidifying its position in global supply chains for electronics, pharmaceuticals, and renewable energy.

Key Beneficiaries

• Countries like Mexico, Canada, and ASEAN nations benefited significantly, collectively accounting for 57% of the growth in US imports.

India’s Position in a Potential Trade War

• India faces a critical question: Can its exporters leverage opportunities from a new trade war, or will it merely become a transit hub for Chinese goods entering the US? 
• Without significant value addition or manufacturing competitiveness, India risks missing out on the benefits of global trade shifts.

Conclusion: 

• While tariffs aim to protect domestic industries and reduce trade deficits, their broader economic impact often includes inflation, distorted markets, and limited long-term benefits. 
• Countries like India must strengthen domestic manufacturing capabilities and global competitiveness to capitalize on trade realignments rather than becoming conduits for redirected goods. 

2. India’s Deep Ocean Mission Gains Momentum: Human Submersible to Launch This Year

(Source – https://pib.gov.in/PressReleseDetail.aspx?PRID=2095517&reg=3&lang=1 )

India’s First Human Underwater Submersible

• This submersible will operate at a depth of 500 meters, with a future goal of reaching 6,000 meters by next year.
• This achievement will position India among six countries with the technology to undertake such ambitious projects.

Boosting the Blue Economy

• The submersible and the Deep Ocean Mission aim to advance scientific capabilities and strengthen the blue economy, which involves utilizing ocean resources for sustainable economic growth.
• The initiative is designed to explore vast underwater resources, including minerals, rare metals, and marine biodiversity, crucial for economic growth and environmental sustainability.
• The project is fully based on indigenous technology developed in India, emphasizing the country’s self-reliance in cutting-edge science.

Dual Achievements in Scientific Exploration

• The Deep Ocean Mission aligns with India’s other landmark missions, such as the Gaganyaan space mission, showcasing significant achievements in both space and marine exploration.
• The mission also aims to enhance understanding of deep-sea ecosystems, contributing to sustainable fisheries and biodiversity conservation.

Conclusion

• The mission faced delays due to the pandemic but has made notable progress.
• It promises long-term benefits for India’s economy, scientific community, and environmental resilience.

Prelims Facts

1. Tungsten mining: Centre decides to annul auction of mineral block in Madurai

(Source – The Hindu, International Edition – Page No. – 4)

Places in News:

• Nayakkarpatti, Madurai: The Union Ministry of Mines canceled the auction of a tungsten mineral block due to protests from locals and concerns over the Arittapatti biodiversity heritage site.
• Arittapatti Biodiversity Heritage Site: Tamil Nadu’s first biodiversity heritage site, Arittapatti, boasts rich biodiversity, including raptors like the Laggar Falcon and Shaheen Falcon. It also features historical sites like megalithic structures and rock-cut temples.

2. The hidden dangers of Rhodamine B: a global and local perspective

(Source – The Hindu, International Edition – Page No. – 7)

Use of Rhodamine B and Its Health Risks

• Rhodamine B is a synthetic dye, widely used in textiles, paper, and leather.
• It is also found in food products, though its use in consumables poses serious health risks.
• Studies show it can cause DNA damage, mutations, and potentially lead to cancer.
• Animal studies have linked prolonged exposure to tumor development in organs like the liver and bladder.

Global and Indian Actions

• The FDA in the U.S. has banned Rhodamine B in food, citing concerns over its carcinogenic effects.
• The European Union also restricts its use in cosmetics and consumer products.
• In India, several states have taken actions against its use in food.
  • Tamil Nadu banned cotton candy in February 2024 after detecting the dye in samples.
  • Karnataka followed suit, imposing severe penalties on violators.
  • Puducherry and Himachal Pradesh also implemented similar bans.

Health Risks of  Rhodamine B

• Experts warn of the carcinogenic risks associated with synthetic dyes like Rhodamine B, especially for children, the elderly, and those with weakened immune systems.
• Long-term exposure to such dyes may lead to chronic allergic reactions and skin issues.
• Experts suggest India needs more research on the safety of food dyes.

3. Digital economy to constitute fifth of Indian GDP by 2030: ICRIER report

(Source – The Hindu, International Edition – Page No. – 12)

Analysis of the news:

• The report is based on a study by the Ministry of Electronics and Information Technology and was prepared by the Indian Council for Research on International Economic Relations (ICRIER).
• By 2030, India’s digital economy is expected to account for nearly 20% of GDP.
• This is the first government attempt to quantify the digital economy’s size.
• ICRIER’s definition combines those from the OECD and ADB, while also including digitally-enabled sectors like BFSI and education.
• In 2022–23, India’s digital economy was valued at ₹28.94 lakh crore (GVA) and ₹31.64 lakh crore (GDP).

4. Centre yet to give approval to Tamil Nadu’s Cauvery-South Vellar Link project, says SC

(Source – The Hindu, International Edition – Page No. – 3)

Cauvery-South Vellar Link Project: Key Details

• Tamil Nadu sought in-principle approval for the project from the Jal Shakti Ministry in January 2021, but the Centre has not granted approval yet.
• Project Overview: The South Vellar Link aims to divert surplus water from the Mettur dam in Tamil Nadu to dry tanks in the Sarabanga basin in Salem district.
• Karnataka’s Opposition: Karnataka raised concerns that the project could affect its rights over Cauvery water, as the project involves the transfer of inter-State water from Karnataka’s Biligundlu border.
• Cost and Scope: Estimated cost of ₹565 crore, with 483 tmcft of water transferred.
• Legal Action: Karnataka filed a plea for an injunction against the project, citing constitutional and federal concerns – and seeking non-clearance from the Centre.

5. Ad hoc judges in HC 

(Source – Indian Express, Section – Explained- Page No. – 15)

Analysis of the news:

Constitutional Provision for Ad Hoc Judges

• Article 224A of the Indian Constitution allows the Chief Justice of a High Court to appoint retired judges as ad hoc judges with the President’s consent. 
• These judges have the same powers and privileges as High Court judges but are not “deemed” as permanent judges. 
• This provision aims to utilize the experience of retired judges to address judicial backlogs, a persistent issue in India’s judiciary.

Procedure for Appointment

The appointment process follows the 1998 Memorandum of Procedure (MOP):

• Consent is sought from the retired judge.
• The Chief Justice recommends the name to the Chief Minister, who forwards it to the Union Law Minister.
• The Law Minister consults the Chief Justice of India (CJI) and forwards the recommendation to the Prime Minister, who advises the President.
  Since 2021, the recommendation must also pass through the Supreme Court Collegium (CJI and two senior-most SC judges).

Criteria for Appointment Under Article 224A

The Supreme Court in Lok Prahari v. Union of India (2021) laid down specific conditions for invoking Article 224A:

1. Vacancies in the High Court must exceed 20% of the sanctioned strength.
2. More than 10% of pending cases should be older than five years.
3. Regular judge appointments must be underway, and ad hoc judges are to serve as a temporary solution.
4. A “panel” of retired or soon-to-retire judges must be maintained for quick deployment.

Rationale for Ad Hoc Appointments

• The persistent backlog of cases and nearly 40% judicial vacancies prompted the SC to suggest utilizing retired judges as a stop-gap measure. 
• Law Commission reports from 1979, 1988, and 2003 also advocated ad hoc appointments as a viable strategy to reduce pendency.

Historical Use of Article 224A

The provision has been rarely invoked, with only three recorded instances:

1. Justice Suraj Bhan in the Madhya Pradesh High Court (1972).
2. Justice P. Venugopal in the Madras High Court (1982).
3. Justice O.P. Srivastava in the Allahabad High Court (2007).

Check more- 23 January 2025 : Daily Current Affairs