Current Affairs Analysis - 2nd February 2025

  

1. India’s Foreign Relations & Geopolitical Developments

A. India-Bangladesh Border Dispute

  • Issue: Recent tensions between India and Bangladesh over border fencing, leading to diplomatic exchanges and concerns over security protocols.
  • Key Facts:
    • India shares a 4,096 km border with Bangladesh, the longest with any neighbor.
    • 78% of the border is fenced, with some disputed areas leading to tensions.
    • India aims for a crime-free border, while Bangladesh opposes fencing at certain locations.
  • Significance:
    • Important for GS-2 (International Relations), focusing on border management and bilateral ties.
    • Relates to security concerns, illegal migration, and trade relations.
  • UPSC Prelims Concept: Understanding border management, India's foreign policy, and security mechanisms.

B. China’s AI Boom & DeepSeek Rivalry with OpenAI

  • Issue: China’s AI firm DeepSeek-R1 is emerging as a competitor to OpenAI, marking a new phase in AI-driven geopolitical competition.
  • Key Points:
    • Founded by hedge fund expert Liang Wenfeng, DeepSeek is developing AI models to rival Western firms.
    • US-China tensions have restricted China’s access to Nvidia GPUs and semiconductor technology, impacting AI research.
    • Despite restrictions, China has invested heavily in quantum computing and AI.
  • Significance:
    • Important for GS-3 (Science & Technology, Cybersecurity, AI Ethics).
    • Highlights US-China tech war and the impact of AI regulations.
  • UPSC Prelims Concept: Understanding Generative AI, Quantum Computing, and Digital Sovereignty.

C. India's Push for Export Promotion & BharatTradeNet

  • Issue: The government announces an Export Promotion Mission (₹2,250 crore) to boost MSMEs and ease international trade.
  • Key Facts:
    • BharatTradeNet (BTN) is to be launched for seamless trade documentation and finance solutions.
    • Aim: Improve export competitiveness and cross-border financing.
    • ₹25,000 crore Maritime Development Fund to boost shipbuilding and trade logistics.
  • Significance:
    • Important for GS-3 (Economy, Infrastructure, MSME Development).
    • Relates to India’s trade policy, self-reliance goals, and supply chain resilience.
  • UPSC Prelims Concept: Understanding trade facilitation, MSME support, and global trade networks.

2. Domestic Economic & Policy Developments

A. India’s Budget 2025 - Push for AI & Digital Economy

  • Issue: Union Budget 2025 prioritizes AI, deep-tech, and digital transformation.
  • Key Announcements:
    • ₹500 crore Centre of Excellence for AI in Education.
    • 10,000 fellowships for technological research in IITs and IISc.
    • Expansion of Global Capability Centres (GCCs) in Tier-2 cities to boost AI-powered digital services.
  • Significance:
    • Key topic for GS-3 (Digital India, AI Policy, Cybersecurity).
    • Focuses on India’s leadership in emerging technologies.
  • UPSC Prelims Concept: Understanding DeepTech Fund, AI Modernization, and Start-up Ecosystem.

B. Fiscal Consolidation & India’s Economic Growth Path

  • Issue: The government plans to lower fiscal deficit (4.4% of GDP) to ensure economic stability.
  • Key Announcements:
    • Lower borrowing (₹14.8 trillion) to prevent financial instability.
    • Focus on Capital Expenditure (₹11.2 lakh crore) for roads, railways, and defense.
    • Fiscal discipline to control inflation and attract foreign investments.
  • Significance:
    • Important for GS-3 (Indian Economy, Fiscal Policy, Budgeting).
    • Relates to debt management, financial markets, and public finance principles.
  • UPSC Prelims Concept: Understanding Fiscal Deficit, Public Borrowing, and Inflation Control.

C. Nuclear Energy & Infrastructure Push

  • Issue: India announces a 100 GW nuclear power target by 2047, but lacks clear funding.
  • Key Facts:
    • ₹20,000 crore was allocated for Small Modular Reactors (SMRs) research.
    • Amendments proposed to the Atomic Energy Act & Civil Liability for Nuclear Damage Act.
    • Private sector entry into nuclear energy for the first time.
  • Significance:
    • Relevant for GS-3 (Energy Security, Science & Technology, Environment).
    • Impacts clean energy goals and India's power sector modernization.
  • UPSC Prelims Concept: Understanding SMRs, Nuclear Liability Laws, and Energy Security.

D. India’s Tourism & Cultural Heritage Boost

  • Issue: Government to develop 50 major tourist destinations in ‘challenge mode’​.
  • Key Announcements:
    • E-visa reforms and visa fee waivers to attract international tourists.
    • Medical Tourism & ‘Heal in India’ initiative for healthcare-driven travel.
    • ₹2,541 crore was allocated to enhance the hospitality sector & digital tourism.
  • Significance:
    • Important for GS-1 (Art & Culture, Heritage, Tourism Policy).
    • Impacts foreign exchange earnings and employment in tourism.
  • UPSC Prelims Concept: Understanding tourism policy, heritage conservation, and global competitiveness.

3. Social & Environmental Issues

A. India’s Fight Against Dengue - AI-Based Warning System

  • Issue: Pune scientists develop an AI-powered dengue warning system to predict outbreaks two months before.
  • Key Facts:
    • Climate variables (rainfall, temperature, humidity) are used to forecast dengue risk.
    • 12-112% rise in dengue cases projected by 2100 due to climate change.
    • The model can be extended to other cities for public health planning.
  • Significance:
    • Relevant for GS-2 (Health & Governance), GS-3 (Disaster Management, Climate Change).
    • Highlights public health AI applications and disease prevention.
  • UPSC Prelims Concept: Understanding Climate Change & Vector-Borne Diseases.

UPSC Mains Practice Questions

GS-2 (International Relations & Governance)

  1. India’s border management with Bangladesh presents both opportunities and challenges. Analyze.
  2. Discuss the implications of 100% FDI in the insurance sector on India's economy and social welfare.

GS-3 (Science & Economy)

  1. Examine how AI-driven disease prediction can revolutionize India’s public health infrastructure.
  2. Evaluate the role of nuclear energy in India’s clean energy transition.

GS-1 (Society & Culture)

  1. How can India’s tourism policies contribute to sustainable economic development?

Conclusion

  • India’s economic growth is tied to fiscal stability, AI-driven innovation, and energy security.
  • Geopolitical tensions with Bangladesh & China’s AI rise highlight new challenges for India.
  • Tourism, digital economy, and nuclear energy policies aim to make India a global leader.

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