10 January 2025: The Hindu Analysis (Daily Current Affairs)

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1. Decoding India’s growth slowdown

(Source – The Hindu, International Edition – Page No. – 10)

Topic: Indian Economy

Context

• India's real GDP growth rate for 2024-25 is projected to decrease to 6. 4% from 8. 2% in 2023-24.

Decline in GDP Growth

• This forecast falls short of the 6. 5% to 7% range anticipated in the Economic Survey of July 2024. The nominal GDP growth rate, which includes the effects of inflation, is expected to be 9. 7%, lower than the 10. 5% estimated in the Union Budget.

Discrepancies in Data Estimation

• Experts, including the IMF, have criticized the official GDP estimates, particularly the utilization of the Wholesale Price Index (WPI) as a deflator. The IMF advocates for the use of the Producer Price Index (PPI) instead of WPI to enhance the accuracy of GDP deflation. Issues with data, such as revisions to historical series and inconsistencies between GDP by activity and expenditure, complicate the monitoring of India’s economy.

What is GDP Deflation?

• GDP deflation is the method of adjusting nominal GDP (which encompasses inflation) to real GDP by eliminating the impacts of price changes over time. This adjustment is made using a deflator, typically the GDP deflator, which represents changes in the prices of goods and services. It facilitates a more precise comparison of economic output across different periods by focusing on actual growth in volume rather than price variations.

Impact of Volatility in WPI

• The WPI has demonstrated considerable volatility over the years, leading to discrepancies between the WPI and the Consumer Price Index (CPI). For instance, in 2023-24, nominal GDP experienced deceleration, while real GDP growth reflected acceleration due to inconsistencies in the GDP deflator, misrepresenting economic conditions.

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Wholesale Price Index (WPI)

• The Wholesale Price Index (WPI) assesses the average price changes of goods at the wholesale level, prior to reaching consumers. It encompasses the prices of raw materials, intermediate goods, and finished products. The WPI monitors inflation trends in the economy, offering early insights into price changes during production. It is published by the Office of Economic Advisor (Ministry of Commerce and Industry). Unlike the Consumer Price Index (CPI), WPI does not include services or products purchased directly by consumers. A high WPI signifies inflationary pressures within the economy.

Private Investment Challenges

• Although the Economic Survey noted a delayed response from the private sector to tax reductions, the Union Budget projected a resurgence in private corporate investment to support the ‘Prime Minister’s Package for Employment and Skilling. ’ However, recent GDP estimates indicate a decline in real gross fixed capital formation from 9% in 2023-24 to 6. 4% in 2024-25, reflecting weak investment performance.

Investment and Consumption Trends

• During the UPA administration, the real private investment growth exceeded 10%, significantly higher than during the NDA regime, where private investment growth stagnated. Despite tax reductions in 2019, corporate investment has not spurred substantial economic activity, underscoring a lack of recovery led by private investment in the post-pandemic landscape.

Fiscal Strain and Budgetary Challenges

• Tax revenue growth lags behind targets, with only 56% of the net tax revenue goal achieved by November 2024.Capital expenditure has not been fully utilized, with less than half of the expected ₹11. 11 trillion spent by November. The government is confronted with the challenge of sustaining fiscal discipline while addressing the economic slowdown, necessitating modifications to revenue mobilization strategies, including increasing taxes on wealth and profits.

Conclusion

The persistent economic slowdown is impacting critical sectors such as agriculture, manufacturing, and services. To prevent further deterioration of the fiscal situation, the government must reevaluate its revenue mobilization strategy and prioritize spending on both capital and welfare initiatives.

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2. Tragedy in Assam: Workers Trapped in Flooded Rat-Hole Mine Highlights Persistent Safety and Environmental Challenges

(Source – Indian Express, Section – Express Network – Page No. – 09)

Topic: Disaster Management

Context: This article discusses the incident of workers trapped in a flooded rat-hole mine in Assam.

Analysis of the news:

Coal Mine Tragedy in Assam: On January 6, multiple workers were trapped for over 12 hours in a water-filled coal “rat-hole” mine in Dima Hasao district, Assam.

Rescue operations, involving both National and State Disaster Relief Forces and the Army, have been hindered by difficulties associated with the flooded, deep mine.

What is Rat-Hole Mining?

Rat-hole mining is a traditional and dangerous coal extraction method, commonly found in Northeast India, especially Meghalaya.

Process: Miners create narrow vertical or horizontal pits and descend using ropes or bamboo ladders.Coal is extracted manually using basic tools.

Types:

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Side-Cutting: Narrow tunnels are dug into hill slopes to access thin coal seams.

Box-Cutting: A vertical pit is created, which leads to horizontal tunnels for coal extraction: Environmental and Safety Concerns

Rat-hole mining presents significant environmental and safety risks:

Safety Risks:

The absence of structural support, ventilation, and safety equipment escalates the potential for accidents, injuries, and fatalities.

Flooding during rains frequently results in worker entrapment and fatalities.

Environmental Impact:

Leads to land degradation, deforestation, and contamination of water sources.

Polluted water bodies have detrimental effects on local communities and ecosystems.

Legal Status and Ban

The National Green Tribunal (NGT) prohibited rat-hole mining in 2014 and reaffirmed this ban in 2015.

Reason for Ban:

Recurrent accidents, including deadly flooding incidents, underscored the unsafe and unregulated nature of these mines.

Notable environmental degradation necessitated regulatory intervention.

Current Scenario:

Despite the ban, the practice continues due to economic pressures and a lack of alternative livelihoods, particularly in Meghalaya and surrounding regions.

Conclusion:

The recent tragedy in Assam highlights ongoing issues related to rat-hole mining, despite existing legal prohibitions.Addressing these challenges requires stringent enforcement of the ban, the development of sustainable livelihood alternatives for local communities, and a transition to safer, regulated mining practices to avert future disasters.

What are the Current Laws and Regulations Related to Mining in India?

Constitutional Provisions: Mining and minerals are included in both the Union List and State List in Schedule VII of the Constitution, endowing regulatory authority to both Central and State governments.

Key Legislations: Principal laws governing mining encompass the MMDR Act, 1957 for regulation and development, the Coal Mines (Special Provisions) Act, 2015 for coal management, the Environment Protection Act, 1986 for environmental clearances, and the Mines Act, 1952 for the safety and welfare of miners.

Regulatory Bodies: The Ministry of Coal establishes coal policies, the Directorate General of Mines Safety (DGMS) enforces safety standards, and State Mining Departments oversee state-level operations.

Supreme Court Directives: The Supreme Court prohibited rat-hole mining in Meghalaya in 2014, accentuating the necessity for environmental clearances and the adoption of scientific and sustainable mining practices.

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Facts

1. Singer P. Jayachandran passes away

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

Context

• Playback singer P. Jayachandran celebrated for his soulful voice and over 16,000 songs, has died in Thrissur. Personalities in News: P. Jayachandran

Personalities in News: P. Jayachandran

• P. Jayachandran was a distinguished Indian playback singer, recognized for his emotive voice and remarkable vocal abilities. Born in Ravipuram, Ernakulam, he came from a family with strong musical traditions. Throughout his illustrious six-decade career, he recorded more than 16,000 songs across various languages, including Malayalam, Tamil, Kannada, Telugu, and Hindi. His voice became a hallmark of Malayalam cinema, with songs that resonated profoundly with audiences of all ages. Despite facing age and health challenges, his voice retained its youthful allure and emotional resonance. He passed away at the age of 81, after a battle with cancer.

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2. PM to open Z-Morh tunnel, a key part of the Kashmir-Ladakh corridor

(Source – The Hindu, International Edition – Page No. – 5)

Context

• The Z-Morh tunnel, scheduled to be opened on January 13, will enhance year-round tourism and facilitate strategic access to Ladakh.

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Analysis of the news:

• Location and Purpose: The Z-Morh tunnel is situated in Ganderbal district, Jammu & Kashmir, and serves as a strategic link between Kashmir and Ladakh.
• Tourism Benefits: The tunnel will keep Sonamarg accessible for year-round tourism, mitigating closures caused by snowfall and avalanches.
• Strategic Importance: It ensures uninterrupted access to Ladakh and improves connectivity, vital for both civilian and military needs.
• Construction: Constructed at a cost of ₹2,680 crore, the tunnel spans 6. 5 km, incorporating advanced features such as a modified escape tunnel and ventilation systems.
• Economic Impact: The tunnel is anticipated to enhance winter tourism and adventure tourism in the region.

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3. India releases compilation of 10,000 human genomes from 83 population groups

(Source – The Hindu, International Edition – Page No. – 6)

Context

• India’s Genome India project compiles 10,000 genomes from 83 population groups to advance disease research, precision medicine, and biotechnology, with data stored at the IBDC.

Genome India Project:

• Objective: The Genome India project aims to establish a comprehensive database of human genomes from diverse population groups across India, emphasizing disease research and drug therapy development.
• Scope: The project encompasses 10,000 human genomes representing 83 population groups, accounting for approximately 2% of India’s 4,600 population groups.
• Database Availability: The database is located at the Indian Biological Data Centre (IBDC) in Faridabad, Haryana, and is accessible to researchers worldwide.
• Genomic Insights: The initiative has identified around 27 million low-frequency variants, including 7 million not present in other global databases.
• Precision Medicine: Genome India focuses on facilitating targeted clinical interventions to improve healthcare and advance precision medicine.
• Privacy Measures: Data is anonymized using numeric codes, and access requires submission of proposals approved by an independent panel.
• Future Potential: Although it currently represents a small segment of India’s genetic diversity, there are plans to expand the database to include one million genomes.

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4. Maha Kumbh Mela 2025

(Source – Indian express, Section – Cover Page- Page No. – 01)

Context

• The Maha Kumbh Mela, among the largest religious gatherings worldwide, is set to occur from January 13 to February 26, 2025, in Prayagraj (Allahabad).

Analysis of the news:

Key Takeaways

1. Spiritual Significance

• The Maha Kumbh Mela is entrenched in Hindu traditions, providing devotees the chance to cleanse sins and attain Moksha (liberation). The event is deemed auspicious due to planetary alignments that elevate spiritual energy, making it transformative for spiritual practices.

2. Historical Foundations

• The festival is linked to ancient mythology, particularly the Samudra Manthan (churning of the ocean) narrative, where drops of Amrita (nectar) fell at the four Kumbh Mela sites. Mentions in the Mahabharata and Puranas enhance its mythical origins.

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3. Cultural Relevance

• The Sangam (confluence) of the Ganga, Yamuna, and Saraswati rivers in Prayagraj is the festival's center. Rituals conducted here are believed to purify sins and bestow spiritual liberty, promoting unity among diverse communities.

4. Modern Relevance

• In addition to its religious significance, the Kumbh Mela symbolizes cultural heritage, spirituality, and universal harmony, uniting individuals from various backgrounds in pursuit of peace and devotion.

Key Rituals

1. Shahi Snan (Royal Bath): This ceremonial plunge in the sacred rivers, led by ascetic groups such as Naga Sadhus, serves as the centerpiece, symbolizing spiritual purification.
2. Sankirtan and Bhajans: Devotional music and chants foster a vibrant spiritual atmosphere.
3. Yoga and Meditation: Attendees participate in practices focusing on physical and mental health.
4. Spiritual Discourses: Esteemed saints share insights on philosophy and spirituality.

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5. Pravasi Bharatiya Divas

(Source – Indian Express, Section – Govt & Politics- Page No. – 06)

Context

• The 18th Pravasi Bharatiya Divas (PBD) is scheduled to take place from January 8-10, 2025, in Bhubaneswar, Odisha.

Analysis of the news:

Why January 9?

• Pravasi Bharatiya Divas is observed annually on January 9 since 2003 to recognize the contributions of the Overseas Indian community to India’s progress. This date marks Mahatma Gandhi’s return to India from South Africa in 1915, signifying the onset of his crucial role in India’s freedom movement. Since 2015, this event has been held every two years.

Historical Background

• The initiative arose from the recommendations of a High-Level Committee on Indian Diaspora chaired by LM Singhvi in 2002. The committee highlighted the importance of strengthening relationships with the Indian diaspora and suggested the establishment of a Pravasi Bharatiya Bhavan for networking and preserving the diaspora's history. The inaugural PBD occurred in 2003 to implement these proposals.

PBD 2025 in Odisha

• The 18th Pravasi Bharatiya Divas Convention is scheduled for January 8–10, 2025, in Bhubaneswar, Odisha, under the theme “Diaspora’s Contribution to a Viksit Bharat. ” This event aims to celebrate India’s relationship with its global diaspora and highlight Odisha’s economic potential, particularly within the ASEAN and Indo-Pacific regions. Recognized for its strengths in mining, steel production, marine economy, IT, and sports, Odisha will utilize the event to attract investments and partnerships.

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Pravasi Bharatiya Samman Award (PBSA)

The PBSA is the premier accolade for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). It acknowledges their contributions to enhancing India's global reputation, supporting local Indian communities, and advocating for Indian interests internationally.

2025 Awards: A total of 27 individuals and organizations from countries including the US, Fiji, Mauritius, and Russia will be recognized.

Conferment: President Droupadi Murmu will bestow the awards during the valedictory session.