CURRENT

AFFAIRS
COMPENDIUM

DEPARTMENT OF MANAGEMENT STUDIES

Indian Institute Technology, Delhi

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 Preface

Greetings, dear readers! Welcome to this compendium, dedicated to exploring the latest
global events of profound importance. Whether you're a student in business school or a
seasoned corporate executive, staying abreast of current affairs is indispensable for
gaining insights and making informed decisions. This compendium serves as a
springboard for delving into these significant developments. Also, the readers are
expected to delve deeper into the topics presented and explore related areas through
further research. Additionally, we encourage readers to enrich their understanding by
perusing publications such as Mint, The Economic times, The Hindu and others.

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 Table of Contents
Future of EV in India - Reflecting on India's role in the global shift towards sustainable energy . 1
Rise of Generative AI - A Technological Revolution with Global Implications ............................... 2
Rise of Indian Defence - National Security and Technological Advancement .................................. 3
Central Bank Digital Currency - A Significant Move In The Evolution Of Global Financial
Systems..................................................................................................................................................... 4
Paytm Payments Bank Crisis ................................................................................................................ 5
2024 US Presidential Election - Major event affecting global political landscape ........................... 6
China plus One Strategy: Significance and future .............................................................................. 7
Israel-Gaza War - A key event with significant geopolitical implications ........................................ 8
2024 Lok Sabha Elections: Economic Implications and Strategies ................................................... 9
India's G20 Presidency: Key Highlights and Implications ............................................................... 10
Overview of India's International Relations in 2023 ......................................................................... 11
BRICS Currency: Implications and Challenges ................................................................................ 12
PLI Scheme In Automotive Industry In India - Economic Growth And Technological Self-
Reliance .................................................................................................................................................. 13
Sri Lanka’s Economic Crisis - Regional Stability And Its Effects On International Relations .... 14
Pakistan Economic Crisis - Similar To Sri Lanka's Situation, With Broader Implications For
South Asian Geopolitics ....................................................................................................................... 15
Interim Union Budget 2024.................................................................................................................. 16
Indian and Global Inflation - Economic challenges with worldwide relevance.............................. 18
Viksit Bharat 2047 - Vision for India's future development............................................................. 19
Same-Sex Marriage in India ................................................................................................................ 20
Online Education Is Here To Stay - Shift in Educational Paradigms with Long-Term
Implications ........................................................................................................................................... 21
ISRO Aditya L1 Mission: A Triumph for Indian Science and Global Space Research ................ 22
India on Moon- Chandrayaan 3 - India's position in global space exploration .............................. 23
India Became Most Populous Country - Demographic milestone with vast social and economic
implications ........................................................................................................................................... 25

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Future of EV in India - Reflecting on India's role in the
global shift towards sustainable energy
India's electric vehicle (EV) sector is evolving with government support and growth in
sales and manufacturing.
Government Initiatives: Key efforts include the revamped FAME II scheme, providing
incentives for EV buyers, and the PLI scheme encouraging domestic manufacturing of
EV components.
Sales Growth and Manufacturing: India's EV segment grew by 218% in 2021-22,
aiming to become a global manufacturing hub with increased production capacity.
Market Trends: EV penetration in two-wheeler and three-wheeler segments is projected
to reach over 45% by 2030. Electric two-wheelers and three-wheelers lead due to cost
advantages. Electric passenger vehicles and heavy commercial vehicles are expected to
constitute 10-15% and 5-10% of new vehicle sales by 2030.
Opportunities for Players: The EV transition offers players opportunities to diversify
by disrupting up to 50% of ICE components. Strategies include improving traditional
operations, expanding across segments, and exploring opportunities in adjacent sectors.
Global Landscape: India is catching up with Europe and China in clean mobility.
Companies can expand globally in current ICE categories and explore emerging areas in
EV-related segments.
Conclusion: India's move towards sustainable energy through EVs is supported by
policies, manufacturing growth, and commitment to greener mobility. Initiatives like
FAME II, PLI, and significant sales growth highlight the nation's dedication to building
a robust and sustainable EV ecosystem
References:
 https://blog.mygov.in/editorial/indias-electric-vehicle-push-will-lead-to-brighter-
greener-future/
 https://timesofindia.indiatimes.com/blogs/voices/india-on-a-path-to-becoming-a-
global-manufacturing-hub-for-electric-vehicles/
 https://www.bain.com/insights/india-electric-vehicle-report-2023

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Rise of Generative AI - A Technological Revolution with
Global Implications
Artificial intelligence (AI) is the ability of machines to perform tasks that normally
require human intelligence, such as understanding language, recognizing images, solving
problems, and learning from data. One of the most exciting and impactful developments
in AI is the emergence of generative AI, which is a type of AI that can create new and
original content, such as text, images, code, or music, often in response to a prompt
entered by a user.
Implications:
Supply Chain: AI can design and optimize logistics networks, personalize product
recommendations, and even generate custom packaging based on specific needs.
Marketing: AI can create targeted advertising campaigns, personalize customer
experiences, and generate engaging content, enhancing brand awareness and engagement.
Finance: AI can analyze financial data to predict market trends, generate personalized
financial advice, and even automate fraud detection.
IT: AI can generate code, automate software development processes, and even
personalize user interfaces, streamlining IT operations and enhancing user experience.
The Flip Side of the Coin: While Generative AI promises immense benefits, potential
drawbacks need consideration:
Ethical Concerns: AI-generated content can be used for malicious purposes like creating
deepfakes or spreading misinformation.
Job Displacement: Automation powered by Generative AI could potentially lead to job
losses in certain sectors.
Bias and Discrimination: AI models trained on biased data can perpetuate existing
societal inequalities.
References:
 https://www.coursera.org/learn/generative-ai-with-llms
 https://link.springer.com/collections/geafahjbjb
 https://link.springer.com/collections/geafahjbjb

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Rise of Indian Defence - National Security and
Technological Advancement
India's defense strategy is undergoing a transformative phase, prioritizing technological
advancement, self-reliance, and modernization to address evolving geopolitical
dynamics. Amid tensions with China, the government has significantly boosted the
defense budget to $72.6 billion. The Union Budget 2023-24 allocates Rs 5.94 lakh crore
to defense, marking a 13% increase over the previous year. This allocation aims to address
critical gaps in combat capabilities and augment the military's war-fighting capacities.
Challenges persist in the pace of defense modernization, attributed to complex decision-
making processes and structural inefficiencies. Delays in procuring advanced weapons
systems impact the armed forces' war-fighting capabilities, prompting a recognized need
for key structural reforms in India's higher defense management and national security
decision-making processes.

Technological innovation, particularly in artificial intelligence (AI) and unmanned

systems, is a focal point of India's defense strategy. The Ministry of Defence has launched
75 AI products, showcasing efforts to foster a self-reliant defense sector. Policy reforms
have streamlined export procedures, making them industry-friendly and encouraging
partnerships with foreign defense companies. These developments signify a critical step
towards strengthening national security, asserting India's position on the global stage

References:
 https://www.iadb.in/2023/04/05/indias-defence-industry-emerges-as-an-exporter-
from-its-import-dependent-past/
 https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1884353
 https://www.indiandefencereview.com/news/indias-defence-modernisation-
challenges-and-prospects/

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Central Bank Digital Currency - A Significant Move In
The Evolution Of Global Financial Systems
The recent emphasis by the RBI Governor on Central Bank Digital Currency (CBDC) or
E-rupee underscores its potential to enhance the efficiency of cross-border payments.

CBDCs are digital versions of paper currency issued and backed by central banks, distinct
from cryptocurrencies and possessing legal tender status. They aim to streamline currency
handling, reduce costs, and discourage the use of unregulated cryptocurrencies for
transactions.

Globally, countries like the Bahamas, Nigeria, and China have already introduced their
CBDCs. The significance of CBDCs lies in their ability to revolutionize cross-border
transactions, promote financial inclusion, and blend traditional banking security with the
convenience of digital currencies.

However, adopting CBDCs in India faces challenges such as privacy concerns, potential
disintermediation of banks, technological obsolescence, and operational risks.
Overcoming these challenges requires robust cybersecurity measures, collaboration
among stakeholders, and careful regulation.

The way forward involves continued research, development, and pilot projects by central
banks, along with international cooperation to address regulatory and technical hurdles.
Security and privacy must remain top priorities in the implementation of CBDCs.

References:

 https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1882883
 https://www.livemint.com/industry/banking/digital-rupee-how-central-bank-
digital-currency-
 cbdc-will-boost-financial-inclusion-11695281519250.html
 https://www.hdfcbank.com/personal/useful-links/quick-links/central-bank-digital-
currency-feature

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Paytm Payments Bank Crisis
The RBI has issued a directive barring Paytm Payments Bank Ltd (PPBL), its subsidiary,
from accepting top-ups and deposits into its wallets and accounts starting from February
29th. This action follows an audit report revealing persistent non-compliances and
significant supervisory concerns within the bank. PPBL had previously halted customer
onboarding in March 2022.
What are Payment Banks?
Payment Banks operate similarly to traditional banks but with certain restrictions and a
focus on serving a narrower customer base. They are authorized by the RBI to provide
basic banking services on a smaller scale. It was recommended by a committee led by Dr.
Nachiket Mor, aiming to cater to lower-income groups and small businesses. Unlike
conventional banks, payments banks do not engage in lending activities or issue credit
cards, thus eliminating credit risk. They primarily accept demand deposits, including
savings and current accounts, while excluding time deposits. Additionally, payments
banks are prohibited from establishing subsidiaries for non-banking financial services.
Regulation for Payment Banks
Payment Banks must register as public limited companies under the Companies Act,
2013, and adhere to regulations outlined in the Banking Regulation Act, 1949; They are
required to maintain a Cash Reserve Ratio (CRR) and invest a minimum of 75% of their
"demand deposit balances" in Statutory Liquidity Ratio (SLR) eligible Government
securities/treasury bills with maturity up to one year, while holding a maximum of 25%
in current and time/fixed deposits with other scheduled commercial banks for operational
and liquidity management purposes.
Additionally, payment banks must have a minimum paid-up capital of Rs 100 crore, with
the promoter's initial contribution set at a minimum of 40% of the paid-up equity capital
for the first five years from the commencement of business. Foreign shareholding in
payment banks is subject to the FDI policy for private sector banks as amended from time
to time.
References:
 https://www.livemint.com/companies/news/rbi-action-on-paytm-payments-bank-
regulatory-compliance-cannot-be-optional-says-rajeev-chandrasekhar-
11708258649573.html
 https://www.rbi.org.in/commonperson/English/scripts/Notification.aspx?Id=2281
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2024 US Presidential Election - Major event affecting
global political landscape
Amidst a year of intense campaigning, door-knocking, and significant ad spending, the
2024 U.S. presidential election commences with Iowans casting the initial ballots.
Characterized as highly consequential, this election revolves around shaping the future of
America, navigating through profound changes in economics, technology, culture, and
politics.
The core question is what it means to be American and which values will define the
nation's future. The electorate is sharply divided on these values, fueling a fight for
political dominance amidst a realignment in American politics. Partisan divisions,
ideological sorting, and discontent with the political landscape intensify.
Issues like immigration, urban disorder, and foreign policy, particularly concerning
China, play significant roles. The evolving landscape of the 2024 U.S. presidential
election is marked by diverse dynamics. Despite reservations among U.S. adults about a
Biden-Trump rematch, it appears plausible. Trump leads the Republican camp, notably
surpassing Ron DeSantis by a 46-percent margin, with projections suggesting Nikki
Haley might surpass DeSantis soon. Trump's absence from Republican debates has given
rise to 'Trumpism without Trump.'
In the Democratic arena, Biden faces challenges, countering Trump as he emphasises
Bidenomics, democracy restoration, working-class focus, and global alliances. The 2024
election centers on issue-centric campaigns, challenging the significance of individual
personas. Biden and Trump's age and personal controversies add complexity. Looming
concerns over political and social stability, issues like border control, urban disorder, and
immigration shape the narrative. Foreign policy intertwines with domestic affairs, notably
concerning China.
The election's outcome is uncertain, with both candidates addressing crucial issues, but
potential legal hurdles for Trump could impact the race. Congress control remains pivotal,
with both candidates aiming to avoid a divided house.
References:
 https://www.business-standard.com/podcast/international/what-is-the-china-plus-
onestrategy-122072600052_1.html

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China plus One Strategy: Significance and future
Amidst heightened global uncertainties, the concept of China Plus One strategy,
particularly diversifying supply chains away from China, has gained prominence.
Originating in 2013 due to concerns over dependency on China, this strategy has found
renewed relevance amid trade tensions, COVID-19 disruptions, and escalating labor
costs. The core idea involves companies seeking alternative manufacturing and sourcing
locations beyond China to mitigate risks associated with over-reliance on a single country.
The resurgence of the China Plus One strategy is fueled by geopolitical tensions, COVID-
19 repercussions, and concerns over rising labor costs. Businesses worldwide, including
prominent media outlets, are now actively exploring diversifying their operations. The
strategy encourages a diversified approach by evaluating costs, geopolitical stability,
infrastructure, supplier reputation, and more when choosing an alternative location.
Despite being a compelling risk mitigation strategy, the China Plus One approach comes
with both pros and cons. It offers benefits like risk mitigation, better compliance
management, market access expansion, cost savings, and access to new technology and
expertise. However, challenges such as upfront costs, quality control issues, and
economic and political risks need careful consideration.
Choosing the right "Plus One" location is crucial. Factors like costs, geopolitical and
economic stability, infrastructure, supplier reputation, workforce, and connectivity must
be meticulously evaluated. India and Vietnam have emerged as prominent contenders for
implementing the China Plus One strategy, offering competitive advantages, strategic
locations, growing economies, skilled workforces, and favorable policies.
In conclusion, the China Plus One strategy is becoming integral to shaping the future of
supply chains. While the strategy poses challenges, its adaptability makes it a
consideration for businesses aiming for resiliency and sustainability in a dynamic global
marketplace.
References:
 https://www.business-standard.com/podcast/international/what-is-the-china-plus-one-
strategy-122072600052_1.html
 https://www.z2data.com/insights/everything-you-need-to-know-about-china-plus-
one#:~:text=What%20is%20the%20China%20Plus,countries%20they%20source%20pa
rts%20from

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Israel-Gaza War - A key event with significant geopolitical
implications
The ongoing Israel-Gaza War, which erupted following a surprise attack by Hamas on
October 7, 2023, has led to significant geopolitical implications and a humanitarian crisis.
The conflict has resulted in the deaths of at least 27,478 people and injured 66,835 in
Gaza as of early February 2024. A convoy of trucks waiting to bring food into the Gaza
Strip was hit by Israeli fire, exacerbating the already dire humanitarian situation.
The conflict has seen the Israeli Defense Forces (IDF) withdrawing five brigades from
Gaza, though intense fighting is anticipated to continue throughout the year. Israel
maintains that its military efforts are focused on avoiding civilian harm while combating
a terror group that embeds itself within the civilian population, utilizing civilian structures
for military purposes.
Internationally, the conflict has stirred diplomatic actions and reactions. The United States
vetoed a UN Security Council resolution calling for an immediate ceasefire in Gaza, a
move that has been condemned by Hamas and has led to widespread criticism. The veto
highlights the complex geopolitical dynamics and the role of international actors in the
conflict.
The broader implications of the war are profound, impacting the Middle East's political
landscape significantly. The conflict has disrupted the normalization process between
Arab states and Israel, a key element of regional stability and diplomatic relations. This
has been further complicated by the longstanding blockade of Gaza, which has severely
restricted access to essential resources for its over two million residents.
The Israel-Gaza War underscores the intricate web of regional politics, humanitarian
concerns, and international diplomacy, marking a critical phase in the Israeli-Palestinian
conflict with far-reaching consequences.
References:
 https://www.aljazeera.com/news/2024/2/6/israels-war-on-gaza-list-of-key-events-day-123
 https://www.timesofisrael.com/as-2024-begins-idf-releases-5-brigades-from-gaza-but-says-
fighting-likely-all-year/
 https://www.thenationalnews.com/mena/palestine-israel/2024/02/20/live-israel-gaza-houthi-
attack-rubymar/
 https://theconversation.com/israel-gaza-conflict-how-could-it-change-the-middle-easts-
political-landscape-expert-qanda-215473

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2024 Lok Sabha Elections: Economic Implications and
Strategies
The 2024 Lok Sabha elections are a critical assessment of the BJP-led NDA's economic
strategies against the INDIA bloc's vision.
NDA's Approach:
 Market Reforms: Introduction of GST and promotion of privatization.
 Social Welfare: Expansion of PM Kisan and MNREGA to support rural
upliftment.
 Infrastructure: Heavy investment in connectivity and job creation through
infrastructure.
 National Self-Reliance: Emphasis on reducing import dependency.

Criticisms of NDA:
 Benefits skewed towards corporations, increasing income inequality.
 Rising national debt and inflation concerns.
 Persistent unemployment rates.

INDIA Bloc's Vision:

 Agricultural and Rural Focus: Proposals for loan waivers and better market
access for farmers.
 Job Creation: Support for universal basic income and employment opportunities.
 Federalism: Advocating for increased economic decision-making by states.
 Environmental Sustainability: Commitment to eco-friendly growth.

Challenges for INDIA Bloc:

 Policy cohesion across diverse party ideologies.
 Fiscal management of social welfare programs.
 Unclear policies on globalization and foreign investments.

Conclusion: The elections present a choice between the NDA's reform-focused approach
and the INDIA bloc's emphasis on inclusive, sustainable development.
References:
 https://thewire.in/economy/the-electoral-battle-for-2024-merits-a-deeper-
reflection-on-the-state-of-indias-economy

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India's G20 Presidency: Key Highlights and Implications
India's presidency of the G20 from December 2022 to November 2023 represents a
strategic opportunity for India to shape global economic and policy agendas. As host,
India is focusing on several key priorities to foster international cooperation and
sustainable development.

Core Priorities:

1. Climate Action: Emphasis on green development, energy transition, and

supporting developing countries through finance and technology.
2. Inclusive Growth: Aiming to integrate MSMEs into global trade, promote labor
rights, and ensure agricultural advancements.
3. Sustainable Development Goals (SDGs): Strengthening global efforts to achieve
SDGs, especially post-COVID-19.
4. Digital Transformation: Advocating for accessible and inclusive technological
advancements.
5. Global Governance Reform: Pushing for a reformed, inclusive, and equitable
international system.
6. Women’s Empowerment: Enhancing women's roles in economic and social
development.
India’s G20 theme, "Vasudhaiva Kutumbakam" (One Earth · One Family · One Future),
underscores its vision for a unified and sustainable global future, promoting the Life
initiative to encourage environmentally responsible behaviors.
Impact:
India’s leadership is pivotal in driving G20 discussions towards actionable outcomes that
address global challenges, emphasizing collective progress and sustainability.
India’s G20 presidency underscores its emerging role as a key global player, committed
to driving inclusive and sustainable solutions on the world stage.
References:
 https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1882356
 https://moes.gov.in/g20-india-2023/moes-g20?language_content_entity=en

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Overview of India's International Relations in 2023
India and USA:
 Hosted the first 2+2 ministerial dialogue in December, enhancing strategic
cooperation.
 Tensions over India's neutrality on Ukraine and continued purchase of Russian oil.
India and UK:
 Celebrated the India-UK Year of Culture 2023, strengthening cultural and bilateral
ties.
 Discussions on trade, security, and climate change during the UK Foreign
Secretary's visit in December.
India and the Middle East:
 Formed the I2U2 grouping with Israel, UAE, and the US in July, promoting
regional economic and security cooperation.
 India's closer ties with Israel require careful balancing with Arab nations.
India and China:
 Continued military standoffs but engaged in dialogue to reduce border tensions.
 The US-China rivalry affects India's strategic decisions.
India and Russia:
 India's purchase of discounted Russian oil amid the Ukraine conflict draws
international scrutiny.
 Maintained strong bilateral cooperation across various sectors.
India and Israel:
 Participation in the I2U2 grouping emphasizes growing economic and security ties.
 Ongoing collaboration in innovation and technology.

In 2023, India's diplomatic engagements reflect a complex balancing act between

deepening strategic partnerships and navigating geopolitical challenges.

References:

 India, U.S. hold 2+2 ministerial dialogue with focus on Indo-Pacific, critical
minerals and global challenges - The Hindu

 Joint Statement of the Leaders of India, Israel, United Arab Emirates, and the
United States (I2U2) | The White House

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BRICS Currency: Implications and Challenges
Introduction:
The BRICS nations (Brazil, Russia, India, China, South Africa) propose a common
reserve currency to reduce reliance on the US dollar, aiming to enhance their economic
autonomy and global influence.
Potential Benefits:
1. Diversification: A BRICS currency could mitigate the risks associated with the
US dollar's dominance, promoting a more stable international monetary system.
2. Economic Integration: Facilitating trade and investment among BRICS and
BRICS+ countries, reducing transaction costs and exchange rate risks.
3. Global South Representation: Enhancing the Global South's voice in economic
governance, reflecting the group's economic weight.
Challenges and Limitations:
1. Divergent Interests: Conflicts between members, especially China and India, over
economic models, regional ambitions, and security concerns.
2. Technical Hurdles: Establishing a stable currency requires comprehensive
banking networks, fiscal and monetary policy coordination, and effective
enforcement mechanisms.
3. Resistance from Established Powers: Potential backlash from countries like the
United States, which could impose economic sanctions or destabilize BRICS
economies.
Conclusion:
Creating a BRICS currency presents both opportunities for greater economic
independence and significant challenges, including internal divergences and external
pressures from established global powers.
References:

The Future of BRICS: Between Objectives and Challenges • Stimson Center

Expansion of BRICS: what are the potential consequences for the global economy? |
Banque de France
BRICS Nations Are Considering The Creation Of A New Global Currency. Here's How
It Could Really Change The Game. - Benzinga

12
PLI Scheme In Automotive Industry In India - Economic
Growth And Technological Self-Reliance
The Indian government's Production Linked Incentive (PLI) Scheme, launched in 2021
with a budget of Rs 25,938 crore spanning five years (FY2022-23 to FY2026-27), aims
to propel domestic manufacturing of advanced vehicles and components. Its objectives
encompass bolstering manufacturing and exports to elevate India's global automotive
market standing, promoting clean vehicles like Zero Emission Vehicles (ZEVs) to foster
environmental sustainability, establishing robust domestic and global supply chains for
advanced automotive technologies, and stimulating job creation and economic growth.

Anticipated benefits include attracting over Rs 42,500 crore in new investments,

facilitating incremental production and exports valued at Rs 2.3 lakh crore and Rs 1.9
lakh crore respectively, and generating over 7.5 lakh jobs. The scheme comprises two
components: the Champion OEM Incentive Scheme, supporting manufacturers of various
vehicles with a focus on ZEVs and advanced technology, and the Component Champion
Incentive Scheme, aiding manufacturers of components for such vehicles.

Incentives, ranging from 8% to 18% of eligible sales value, are based on incremental sales
and investment. The PLI Scheme holds immense potential to revolutionize India's
automotive sector, fostering economic growth, technological innovation, and
environmental sustainability.

References:
 https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1757651.
 https://heavyindustries.gov.in/pli-scheme-automobile-and-auto-component-
industry.
 https://www.pib.gov.in/PressReleasePage.aspx?PRID=1806077.
 https://pib.gov.in/PressReleasePage.aspx?PRID=1797610.

13
Sri Lanka’s Economic Crisis - Regional Stability And Its
Effects On International Relations
The Sri Lankan economy is grappling with a severe Balance of Payments (BoP) issue,
leading to a rapid depletion of foreign exchange reserves and making it increasingly
challenging to import vital goods. This crisis stems from historical economic imbalances,
IMF loan conditions, and misguided policies of authoritarian leaders.
Sri Lanka's economic woes trace back to its post-civil war period, with GDP growth
initially robust but later slowing due to various factors like falling global commodity
prices and escalating imports. High budget deficits during the war and the 2008 global
financial crisis drained forex reserves, leading to IMF loans. Subsequent shocks like the
2019 Easter bombings and the COVID-19 pandemic exacerbated the situation, causing
declines in tourism and exports.
The sudden ban on chemical fertilizers in 2021 further strained food production,
prompting an economic emergency. This, along with a lack of foreign currency,
propelled food prices upwards, pushing inflation to over 15%.
India stepped in to assist Sri Lanka starting from January 2022, providing vital economic
aid totalling over USD 1.4 billion, including a currency swap, loan deferment, and fuel
import line of credit. This assistance is crucial not only for alleviating Sri Lanka's crisis
but also for countering Chinese influence in the region, which is in India's strategic
interest.
Moving forward, Sri Lanka must focus on economic recovery measures once essential
commodity shortages ease, collaborating with Tamil political leaders for development in
affected regions. India should continue providing assistance while also fostering
economic integration and addressing issues like illegal immigration. Both countries must
seize this crisis as an opportunity to strengthen bilateral ties and resolve longstanding
disputes.
References:
 https://www.thehindu.com/news/international/the-aftermath-of-sri-lankas-
economic-crash/article66573282.ece
 https://www.livemint.com/opinion/online-views/sri-lanka-s-economic-crisis-
poses-challenges-for-india-11631206452325.html

14
Pakistan Economic Crisis - Similar To Sri Lanka's
Situation, With Broader Implications For South Asian
Geopolitics
Pakistan and Sri Lankan economy are grappling with a severe Balance of Payments
(BoP) issue, leading to a rapid depletion of foreign exchange reserves and making it
increasingly challenging to import vital goods.

Similarities to Sri Lanka: Both Sri Lanka and Pakistan heavily rely on external sources
such as tourism, remittances, and foreign loans. The COVID-19 pandemic significantly
impacted these revenue streams, exacerbating their financial vulnerabilities. For instance,
tourism in Sri Lanka declined by 86% in 2021 compared to 2019 due to the pandemic.
Moreover, both governments have implemented populist policies like tax cuts and
subsidies to provide short-term relief, but these measures ultimately strain their fiscal
positions in the long run. Political instability has also been a common challenge in both
countries, creating uncertainty and discouraging investment, which further impedes
economic progress.

Differences: In terms of severity, Sri Lanka's economic crisis appears more dire, as it has
already defaulted on debt payments and faces severe shortages of essential goods. On the
other hand, Pakistan secured a recent IMF loan and may have more breathing room.
Moreover, while both countries have experienced periods of political instability,
Pakistan's economic challenges trace back to the 1980s, while Sri Lanka's crisis has
deeper roots spanning several decades, primarily linked to its failure to diversify its
economy.

References:

 https://www.aljazeera.com/economy/2024/2/6/in-pakistan-old-hopefuls-jostle-to-turn-
around-struggling-economy
 https://blogs.worldbank.org/voices/could-2024-mark-pakistans-economic-turnaround-
moment
 https://www.thehindu.com/news/international/the-aftermath-of-sri-lankas-economic-
crash/article66573282.ece

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Interim Union Budget 2024
PART-A SUMMARY:

Presenting the Interim Union Budget for 2024-2025 in Parliament, Finance and Corporate
Affairs Minister Smt Nirmala Sitharaman announced an 11.1% increase in capital
expenditure to Rs 11,11,111 crore, constituting 3.4% of the GDP. This rise builds on the
significant tripling of capital expenditure in the past 4 years, which has had a substantial
impact on economic growth and job creation.

The projected Real GDP growth for FY 2023-24 is 7.3%, aligning with the RBI's revised
projection prompted by strong growth in the previous quarter. Despite global economic
challenges, India's economy has maintained healthy fundamentals, with international
agencies like the IMF revising India's growth projection upwards to 6.3% for FY 2023-
24.

Revenue collections have been buoyant, with GST collections reaching ₹1.65 lakh crore
in December 2023, marking the seventh time they have crossed the ₹1.6 lakh crore mark.
For the fiscal year 2024-25, total receipts excluding borrowings are estimated at Rs 30.80
lakh crore, with total expenditure projected at Rs 47.66 lakh crore. Tax receipts are
estimated at Rs 26.02 lakh crore.

Continuing the scheme of fifty-year interest-free loans for capital expenditure to states, a
total outlay of Rs 1.3 lakh crore is proposed, with Rs 75,000 crore allocated for this year.
Fiscal deficit for 2024-25 is estimated at 5.1% of GDP, adhering to the goal of reducing
it below 4.5% by 2025-26.

The Interim Budget highlights the government's focus on poverty alleviation, women
empowerment, youth development, and support for farmers. The government aims to
make India a 'Viksit Bharat' by 2047 through comprehensive and inclusive development
strategies.

PART-B SUMMARY:

In the Interim Budget, no changes have been proposed in taxation rates, maintaining
continuity in tax policies. However, certain tax benefits for Start-Ups and investment
exemptions have been extended by one year until March 31, 2025.

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To improve taxpayer services, outstanding direct tax demands up to certain thresholds are
proposed to be withdrawn, benefiting around a crore taxpayers. Over the last decade,
direct tax collections have tripled, with significant reductions and rationalizations in tax
rates. Indirect taxes, particularly GST, have simplified compliance for trade and industry,
with a doubling of the tax base and a nearly doubled monthly collection. Customs
procedures have also been streamlined to facilitate international trade. A white paper will
be released on the status of the Indian economy, detailing progress made since 2014 and
drawing lessons from past mismanagement. This reflects the government's commitment
to transparent governance and continuous improvement.

Source: Key Features of Budget 2024-2025

References:
 https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2001136
 https://www.indiabudget.gov.in/

 https://www.livemint.com/budget
 https://www.thehindu.com/business/budget/interim-union-budget-2024-
economy/article67802045.ece

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Indian and Global Inflation - Economic challenges with
worldwide relevance
In the dynamic landscape of global economics, inflation stands as a significant indicator,
influencing not only national economies but also resonating across international
boundaries. In India, inflation has been a focal point of economic discourse, with the
average rate hovering around 6.7 percent during the fiscal year 2022/23, exerting strains
on consumer spending and investment patterns.
India's economic trajectory remains promising, as articulated by Reserve Bank of India's
Governor, Shaktikanta Das, forecasting a robust 7 percent growth for fiscal year 2024-25
at the World Economic Forum Annual Meeting 2024 in Davos. India's decisive navigation
through global headwinds in 2023 speaks volumes about its adaptability and resilience,
positioning it as a significant player on the global economic stage. As India's economic
narrative continues to unfold, it underscores the interconnectedness of economies
worldwide, with implications resonating far beyond its borders.
Global Inflation Dynamics
Beyond national borders, global inflation trends are influenced by a complex interplay of
factors. The interconnectedness of economies through trade, finance, and supply chains
means that developments in one part of the world can have far-reaching consequences
elsewhere.
In recent times, the COVID-19 pandemic has significantly disrupted global supply chains,
leading to supply shortages and price hikes across various sectors. The massive fiscal
stimulus measures adopted by governments worldwide to counter the economic fallout of
the pandemic have injected liquidity into markets, raising concerns about potential
inflationary pressures.
References:
 https://economictimes.indiatimes.com/news/economy/indicators/we-expect-the-
indianeconomy-to-grow-7-per-cent-in-fiscal-2024-25-rbi-guv-shaktikanta-das-
atwef/articleshow/106932897.cms?from=mdr

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Viksit Bharat 2047 - Vision for India's future development
In 2014, Prime Minister Narendra Modi unveiled the ambitious vision of "Viksit Bharat
2047," aiming to transform India into a developed nation by its 100th year of
independence. This vision encompasses various aspects of development, including
economic growth, social progress, environmental sustainability, and good governance.
Economic Growth
 Target: Becoming a $5 trillion economy by 2030 and a $30 trillion economy by
2047. (Source: NITI Aayog)
 Challenges: Addressing infrastructure gaps, improving skill development, and
fostering innovation.
 Opportunities: Leveraging demographic dividends, promoting entrepreneurship,
and attracting foreign investment.
Make In India
The "Make in India" initiative, launched in 2015, aims to transform India into a global
manufacturing hub. While its success is debated, it has demonstrably contributed to the
Viksit Bharat vision in several ways:
1. Increased manufacturing output: The Index of Industrial Production (IIP) for the
2. manufacturing sector grew by 14.4% in April-November 2023 compared to the
same period in 2022. (Source: Ministry of Statistics and Programme
Implementation)
3. Foreign Direct Investment (FDI) inflows: FDI into the manufacturing sector
reached $18.9 billion in the first half of 2023, a 20% increase compared to the same
period in 2022.
References:
 https://pib.gov.in/PressRelease

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Same-Sex Marriage in India
Background:
 Supreme Court Case: A batch of petitions was filed by eighteen same-sex
couples seeking recognition of their relationships as “marriage” under the Special
Marriage Act. They aimed to secure the same legal and social status as
heterosexual couples.
 Legal Validation: The petitioners sought a declaration that same-sex couples
should be included within the definition of “marriage” under the Special Marriage
Act.

Petitioners’ Arguments:

 Comprehensive Rights: The petitioners argued that recognition of same-sex

marriage should not be limited to mere cohabitation.

 Equality: They emphasized that India is a marriage-based culture, and LGBT

couples deserve equal rights as any heterosexual couple.

 Legal Framework: The petitioners cited provisions of the Indian Constitution,

UN Human Rights Declaration, and international conventions that grant equal
rights to LGBTQIA individuals.

Opposing Views:

Supreme Court Verdict: On October 17, 2023 the Supreme Court declined to legalize
same-sex marriage, leaving it to Parliament to legislate on the subject. The court ruled
that there is no fundamental right to marry and that it cannot intervene in this matter.

In summary, while the Supreme Court’s recent ruling did not legalize same-sex marriage,
the issue remains a topic of ongoing debate and advocacy for equal rights and recognition
for LGBTQIA couples in India.

References:

 https://www.indiatoday.in/law/story/same-sex-marriage-case-supreme-court-
issues-and-debates-2378525-2023-05-13
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Online Education Is Here To Stay - Shift in Educational
Paradigms with Long-Term Implications
While some professionals yearn for a return to the pre-2020 norm, the student community
seems more inclined to embrace this hybrid model. Nevertheless, a purely online setup
has its limitations, prompting discussions on its pros and cons.
Online Education: Pros
 Flexibility for students, eliminating commute time and its associated hassles.
 Enhanced flexibility for teachers, allowing them to dedicate more time to research.
 Improved quality of classes with the integration of smart tools.
 Tailored learning experiences for students, facilitating short-term knowledge
upgrades and simultaneous employment.
Online Education: Cons
 Concentration of enrollments and revenues among a few institutes and teachers,
exacerbating inequalities.
 Emergence of a venture capital-driven economy, potentially distorting revenue
dynamics.
 Potential unemployment among educators as demand concentrates around the most
sought-after teachers.
 Limited effectiveness for students lacking self-motivation or requiring
interpersonal encouragement.
 Adverse effects on ancillary sectors reliant on student mobility and spending.
 Diminished practical understanding, social interaction, and collaborative skills
among students.
References:
 https://www.21kschool.com/in/blog/why-online-education-is-here-to-stay/
 https://www.utep.edu/extendeduniversity/utepconnect/blog/november-2020/is-
online-education-here-to-stay.html

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ISRO Aditya L1 Mission: A Triumph for Indian Science
and Global Space Research
Mission Overview:
The Aditya-L1 mission, launched on September 2nd, 2023, represents a significant
milestone in Indian space research. This dedicated solar observatory positioned at the
Sun-Earth L1 Lagrange point aims to provide unprecedented insights into the Sun's
chromosphere and corona. Its success marks a major contribution to global understanding
of our parent star, with potential benefits for space weather prediction and protecting
technological infrastructure.
Scientific Advancement:
The Aditya-L1 mission boasts several advancements:
 First Indian Satellite at L1: This unique vantage point offers continuous,
uninterrupted solar observations free from Earth's interference.
 Seven Powerful Payloads: These instruments conduct comprehensive studies of
the Sun's atmosphere, including temperature, density, and plasma dynamics.
 Indigenous Development: All payloads and the spacecraft itself were designed
and built entirely within India, showcasing technical prowess and self-reliance.
Global Contribution:
Aditya-L1 joins a select group of international solar missions, contributing valuable data
to the global scientific community:
 Improved Space Weather Prediction: Understanding solar flares and coronal
mass ejections (CMEs) can help mitigate their impact on satellites, power grids,
and communication systems.
 Collaboration and Data Sharing: ISRO actively collaborates with international
space agencies, sharing Aditya-L1 data for wider scientific analysis.
 Inspiration for Developing Nations: This mission demonstrates the potential for
emerging spacefaring nations to make significant contributions to global scientific
endeavors.
References:
 https://www.isro.gov.in/Aditya_L1.html

22
India on Moon- Chandrayaan 3 - India's position in global
space exploration
India's successful soft landing near the Moon's south pole with Chandrayaan-3 marks a
historic milestone, positioning the nation as a global leader in lunar exploration. This
achievement not only represents a moment of immense national pride but also signifies a
significant leap forward in India's space endeavors. By being the first to accomplish a soft
landing in such proximity to the lunar south pole, India has set a new standard for space
exploration. This landmark accomplishment opens doors to transformative possibilities,
presenting India with an opportunity to play a pivotal role in reshaping humanity's
relationship with outer space.

Chandrayaan 3 and its significance

Chandrayaan-3's significance for the Indian Space Programme is multifaceted and far-
reaching. Firstly, it elevates India's stature in space technology, as it joins the exclusive
league of nations—Russia, the US, and China—with demonstrated lunar soft landing
capability. This achievement underscores India's prowess in indigenous cryogenic
engines and orbit decluttering efforts, positioning the nation as a global hub in the New
Space economy. Strategically, Chandrayaan-3's soft landing capability holds immense
importance for India, extending its applications to Standard Refuelling and Docking
technology and Smart Space Robot technology, thereby enabling interplanetary science
missions and sample retrieval. Moreover, the mission's scientific objectives are equally
compelling, with seven science payloads across its modules investigating various lunar
properties. These include studies on Earth's atmosphere, lunar surface properties, and
analysis of lunar rocks and soil, with key achievements including confirming the presence
of water ice, validating lunar molten history, and detecting subsurface water ice. Beyond
scientific exploration, Chandrayaan-3 contributes valuable insights to India's defence and
aerospace sectors, particularly through its soft landing capability aiding in missile defence
programs and reusable launch vehicle technology aiding in cost reduction for future
launches. Furthermore, the mission's technologies translate into strategic tools and
commercial products, with autonomous rovers developed from rover module technology
finding applications in disaster management and infrastructure monitoring. The mission
also holds promise for stimulating space tourism and economic activities, with potential
developments such as private space parks and in-orbit manufacturing hubs converging
with smart space robots, thus fostering economic growth and innovation. Overall,
23
Chandrayaan-3 represents a pivotal milestone in India's space journey, with wide-ranging
implications for scientific discovery, technological advancement, and economic
prosperity.

India and its future endeavours

India's position in the global space landscape is significantly bolstered by Chandrayaan-
3's achievements, showcasing its technological prowess alongside nations like Russia, the
US, and China. Central to India's success in world space endeavors is the strategic
approach of the Indian Space Research Organisation (ISRO), renowned for its cost-
effective missions and meticulous planning. ISRO's modular design philosophy, in-house
technology development, and collaborations with diverse stakeholders contribute to
India's status as a key player in space exploration. With upcoming missions like Aditya
L1 and Gaganyaan, India's commitment to pushing the boundaries of exploration is
evident, further solidifying its role in global scientific progress. As India looks to the
future, the legacy of Chandrayaan-3 propels the nation towards greater accomplishments
and fosters collaboration across borders, ideologies, and the limits of terrestrial realms.

References:

 https://www.indiascience.in/videos/isro-indias-space-journey-e-
2#:~:text=In%20less%20than%2060%20years,the%20Department%20of%20Ato
mic%20energy
 https://indianexpress.com/article/opinion/chandrayaan-celebration-takeaways-
moonshot-clears-way-big-bold-8906064/
 https://www.isro.gov.in/media_isro/pdf/ResourcesPdf/SpaceIndia/Space%20India
%20Sep%202013-Dec%202014.pdf
 https://timesofindia.indiatimes.com/india/chandrayaan-3-isros-upcoming-and-
past-space-missions/articleshow/103234864.cms

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India Became Most Populous Country - Demographic
milestone with vast social and economic implications
In April 2023, India surpassed China to become the world's most populous nation,
marking a significant demographic milestone with far-reaching social and economic
implications. This shift presents opportunities and challenges for India, requiring strategic
planning and proactive measures to harness its potential and address potential drawbacks.

The good news:

 Young workforce: India has a large young population, with a significant portion
in the 25-64 age group (around 60%). This presents a potential demographic
dividend where a skilled workforce can fuel economic growth.

Growing market: India's massive population translates to a huge domestic market,

`creating opportunities for businesses and entrepreneurs.

The challenges:

 Job creation: Creating enough jobs for this growing workforce is crucial. India
needs to focus on skill development and entrepreneurship to ensure employability.
 Social issues: Addressing poverty, inequality, and access to healthcare and
education becomes even more critical with a larger population.
 Resource strain: A larger population puts pressure on resources like water, food,
and energy. Sustainable practices and efficient management are essential.

References:

 https://population.un.org/wpp/
 https://english.elpais.com/international/2023-04-10/india-the-most-populous-
nation-is-file

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