Current Affairs 04 August 2025

Content

1. Bio-fortified potatoes to hit Indian market soon
2. Farming under the shadow of guns
3. How does the World Bank classify countries by income?
4. How will railway to Sairang help in regional connectivity?
5. Why is Hong Kong regulating and licensing stablecoins?
6. ‘Anything that moves, NISAR will see with unprecedented fidelity’

‘Bio-fortified potatoes to hit Indian market soon’

Context and Background

• Biofortification: Nutritional enhancement of crops through agronomic practices, conventional plant breeding, or modern biotechnology.
• Potato’s Role in India:
  • India is the 2nd largest producer of potatoes globally (FAO, 2023).
  • Key food crop for nutritional security and income in states like UP, WB, Bihar, and Punjab.

Relevance : GS 2(Health , Governance)

What’s New?

• Bio-fortified Potato with Iron:
  • First such variety released in Peru by the International Potato Center (CIP).
  • Iron fortification aims to combat iron-deficiency anaemia – a major public health issue in India.
• Bio-fortified Sweet Potatoes with Vitamin A:
  • Already introduced in Karnataka, Assam, West Bengal, and Odisha.
  • These varieties are part of the orange-fleshed sweet potato (OFSP) campaign against Vitamin A Deficiency (VAD).

Institutional Ecosystem

• International Potato Center (CIP):
  • Global CGIAR research body based in Peru.
  • Focuses on genetic improvement and agronomic practices for tubers (potatoes, sweet potatoes).
  • Now setting up its South Asia Regional Centre in Agra, India – a major institutional milestone.

• ICAR – Central Potato Research Institute (CPRI), Shimla:
  • Nodal Indian body for potato R&D.
  • Currently evaluating germplasm for Indian agro-climatic suitability and biosafety.

Health Relevance

• Iron Deficiency in India:
  • NFHS-5 (2019–21): 67.1% of children, 57% of women (15–49) are anaemic.
  • Fortified potatoes can become a household nutritional staple alongside rice and wheat.

• Vitamin A Deficiency (VAD):
  • Major cause of preventable blindness and child mortality.
  • WHO: Affects ~250 million preschool children worldwide.
  • Biofortified sweet potatoes can be a game-changer in combating VAD in rural India.

Agricultural and Economic Implications

• Seed Dissemination Plans:
  • CIP plans to make iron- and vitamin A-rich potato seeds accessible to small and marginal farmers.
  • Enhanced input-output ratio, especially in regions dependent on tuber crops for livelihood.

• Market Impact:
  • Biofortified crops may increase consumer demand, opening new domestic and export markets.
  • Aligns with India’s “Eat Right” and “POSHAN Abhiyaan” missions.

Policy and Global Relevance

• Global Alignment:
  • Supports UN SDG 2 (Zero Hunger) and SDG 3 (Good Health and Well-being).
  • Part of India’s commitments to food-based approaches to nutrition at global platforms (e.g., G20, World Food Programme).

• National Missions Linkage:
  • National Bio-Energy Mission and National Nutrition Strategy emphasize innovation in crop productivity with nutritional outcomes.
  • Complements Krishi Vigyan Kendras (KVKs)‘ outreach to farmers.

Challenges Ahead

• Regulatory Clearance: Varieties must clear ICAR’s biosafety and field adaptability tests.
• Farmer Awareness and Adoption: Need for targeted extension programs and pricing incentives.
• Supply Chain Readiness: Cold storage, logistics, and market linkages need upgrading for perishable fortified crops.

Farming under the  shadow of guns

Contextual Background

• Conflict Trigger: Ethnic violence erupted on May 3, 2023, between the Meiteis (valley-based) and Kuki-Zo communities (hill-based), resulting in over 250 deaths.
• Key Geography:
  • Khoirentak Khuman village, a Kom tribal area in the buffer zone, lies in Churachandpur district (Kuki-Zo area) but is administratively under Moirang sub-division, Bishnupur district (Meitei area).
  • These overlapping jurisdictions reflect the administrative duality contributing to insecurity and governance issues.

Relevance : GS 2(Social Issues)

Security Architecture in Buffer Zone

• Three-tier Security Layer:
  • CRPF: Manned the central buffer midline.
  • BSF: Positioned on both sides of the buffer zone, stationed along the ‘high canal’ and foothills; maintains movement registers.
  • Army & Assam Rifles: Deeper into both valley and hills, manage overarching security 24×7.

• Incidents of Violence:
  • A Meitei farmer was shot and injured on July 19, 2024, in Phubala while working under heavy security, showing that perceived security does not ensure safety.

Impact on Agriculture

Data on Losses:

• COCOMI Farmers’ Wing Findings:
  • 2023: 9,720 hectares left uncultivated → 32,263.76 metric tonnes rice production loss.
  • 2024: Area left fallow dropped to 7,084.586 hectares.
  • May 2025 (Pre-Kharif): Non-cultivated area rose again to 7,290.406 hectares.

• 2023 Estimates by Loumee Shinmee Apunba Lup:
  • Loss in crop area: 9,719 hectares on valley fringes.
  • Income loss: ₹211.41 crore.
  • Paddy’s Share: 93.36% of total agricultural and allied production.

• Government Compensation:
  • Ministry of Home Affairs relief: ₹38.06 crore for 5,127.08 hectares.
  • COCOMI says this is only a fraction of actual losses.

District-wise Situation:

• Bishnupur:
  • Worst affected: 5,288 hectares (54.4% of land) left uncultivated in 2023.
  • Only 1,419.794 hectares reclaimed in 2024.

• Khoirentak Khuman & Thamnapokpi:
  • Farmers allowed to cultivate only up to 100m from high canal, despite official order allowing up to 300m or more.

Socio-Political Fallout

• Population Displacement:
  • Total displaced: ~62,000 people.
  • Majority: Kuki-Zo from Imphal Valley.
  • ~8,000 Meiteis displaced from valley fringes due to hill raids.

• Allegations of Land Usurpation:
  • Meitei leaders allege Kuki-Zo takeover of ~300 hectares of farmland in buffer zones.
  • Indigenous Tribal Leaders’ Forum declined to comment.

• Sense of Injustice:
  • Meitei farmers express helplessness at watching new settlers cultivate their land while they remain barred from entry.

Emerging Trends & Administration’s Response

• Change in Tone Post President’s Rule (Feb 13, 2025):
  • Administration claims improved coordination and mixed-farming resumption (Meiteis & Kukis farming “eyeball-to-eyeball”).
  • Appeal for Peace: Ex-CS Prashant Kumar Singh urged civil society to not escalate minor incidents.

• Ground Reality Disconnect:
  • Despite administrative orders, ground-level access remains restricted.
  • Farmer confidence remains fragile, as highlighted by villagers and grassroots leaders like Muton.

Policy Lens

• Governance Gap: Ethnic fault lines have exposed deep administrative ambiguities and challenges in maintaining territorial integrity and equitable access to land.
• Security vs. Livelihood: The militarised buffer zone intended for peacekeeping has become an agricultural dead zone, severely hurting food security and rural livelihoods.
• Relief Inequity: A mismatch between compensation disbursed and actual economic loss reflects a policy implementation failure.
• Fragile Reconciliation: Efforts to encourage joint farming are commendable but remain fragile and dependent on sustained security presence.

Policy Suggestions

• Immediate:
  • Expand area domination with civilian farming corridors.
  • Neutral arbitration for land ownership disputes.
  • Enhance psychosocial support and conflict resolution at village level.

• Medium-Term:
  • Establish a Manipur Agrarian Rehabilitation Authority for:
    • Transparent compensation.
    • Buffer-zone re-cultivation schemes.
    • Crop insurance for conflict-affected zones.

• Long-Term:
  • Institutionalise ethnic reconciliation through joint farming cooperatives.
  • Reimagine buffer zones as peace corridors with integrated rural development.

How does the World Bank classify countries by income?

Core Framework: World Bank Income Classification

• Purpose: Provides a standard method for comparing national incomes globally.
• Classification Groups:
  • Low-income: ≤ $1,135
  • Lower-middle income: $1,136–$4,495
  • Upper-middle income: $4,496–$13,935
  • High-income: ≥ $13,936
• Metric Used: Gross National Income (GNI) per capita
  → Includes domestic + income from abroad.

Relevance : GS 3(Growth and Development ) , GS 2(International Relations)

Methodology of Calculation

• Currency Conversion: GNI figures converted to USD using Atlas exchange rates.
• Annual Adjustment: Thresholds revised yearly based on global inflation (not relative economic performance).
• Absolute Nature: A country’s status is independent of others’ growth—purely based on whether it crosses a fixed threshold.

Origin and Evolution of the System

• Initiated: Late 1980s.
• Initial Purpose: To guide lending decisions—e.g., eligibility for concessional loans like IDA.
• Over time: Decoupled from operational decisions; now mainly used for economic comparison and monitoring progress.

Trends in Global Income Distribution (2004–2024)

• 2004:
  • Low-income population: 37% of global total.
  • Upper-middle income population: <10%.
• 2024:
  • Low-income population: <10% — massive reduction in global poverty.
  • Upper-middle income population: 35% — surge in economic advancement.

Countries That Slid Down

• Examples of Downward Mobility:
  • Syria and Yemen fell from lower-middle to low-income in 2017 due to conflict and collapse of GDP.
• Triggers: War, currency depreciation, population revisions, prolonged recession.

Upward Mobility: General Trends

• Most countries show positive movement over 2–3 decades.
• Examples of Progress:
  • India:
    • 2004: Lower-middle income.
    • 2024: On the cusp of upper-middle income; GNI per capita around $2,700–$2,900 (as per recent estimates).
  • China:
    • Crossed into upper-middle income around 2010.
    • Now approaching high-income threshold.

Why These Classifications Matter for Policy

• Targeting Aid & Development Programs: Income groupings guide international aid, development priorities, and eligibility for concessional finance.
• Benchmark for National Policy: Helps assess progress under schemes like Atmanirbhar Bharat, Digital India, Skill India, etc.
• Investors & Analysts: Use income classification to assess country risk and market potential.

Limitations & Criticisms

• GNI per capita masks inequality: Rising averages can hide internal disparities.
• Currency fluctuations: Reclassification can occur due to exchange rate volatility, not real income changes.
• Absolute thresholds can delay recognition of structural poverty improvements or declines.

India’s Relevance in Global Context (2024)

• Status: Lower-middle income, close to threshold of $4,496.
• Policy Goals:
  • Achieve upper-middle income status by early 2030s.
  • Reduce dependency on external aid; shift to regional development leadership.
• Structural Enablers:
  • Digital Public Infrastructure (DPI): UPI, CoWIN, ONDC.
  • Manufacturing push: PLI schemes.
  • Welfare inclusion: DBT, Jan Dhan-Aadhaar-Mobile (JAM trinity).

How will railway to Sairang help in regional connectivity?

Project Overview: Bairabi–Sairang Railway Line

• Length: 51.38 km (gauge-converted from metre to broad gauge)
• Location: From Bairabi (on Assam-Mizoram border) to Sairang (18 km short of Aizawl)
• Sanction Year: 2000 (as part of gauge conversion)
• Construction Began: 2008-09
• Commissioning: Received safety clearance in June 2025; inauguration awaited

Relevance : GS 2(International Relations )

Engineering and Infrastructure Highlights

• Tunnels: 48 (Total length: 12.85 km)
• Bridges: 142 (One of them had India’s tallest railway pier)
• Casualties: 18 workers lost lives in August 2023 bridge collapse
• Cost: Over ₹5,020 crore
• Challenges:
  • Highly landslide-prone, hilly terrain
  • Inclement weather and logistics constraints
  • Shortage of skilled manpower

Strategic Importance for Mizoram

• Pre-existing Rail Connectivity: Only 1.5 km metre-gauge track (Bairabi to Assam’s Silchar)
• Travel Impact:
  • Current road travel (Aizawl-Silchar): ~5 hours
  • Train via Sairang: ~1.5 hours
• Economic Boost:
  • Lower logistics costs
  • Expansion of tourism and local trade
  • Reduced truck dependency
• Connectivity Impact: The railhead serves as a key node linking Mizoram to the broader Indian rail network

Geostrategic & Act East Policy Relevance

• Act East Policy (2014): Successor to 1991’s Look East Policy; aims to transform Northeast into India’s ASEAN gateway
• Sairang’s Role:
  • Facilitates future transhipment from India-funded Sittwe Port (Myanmar)
  • Potential future link to Kaladan Multimodal Transit Project (if completed)
  • Enhances security logistics and economic diplomacy with ASEAN
• Rail & Road Corridors under Act East Policy:
  • Dimapur–Zubza (Nagaland): 82.5 km project (on track)
  • Imphal–Moreh (Manipur): Affected by ethnic unrest
  • Asian Highway 1: Links Assam → Kohima → Imphal → Moreh (gateway to Myanmar)

Barriers to Regional Integration

• Myanmar Crisis: Military coup (Feb 2021) led to civil war; halted India–Myanmar connectivity plans
• Bangladesh Instability: Fall of Sheikh Hasina govt (Aug 2024) has stalled critical cross-border projects
• Delayed Projects:
  • Kaladan Project:
    • Cost: ₹2,904 crore
    • Aim: Reduce Aizawl–Kolkata distance by 1,000 km
    • Current Status: Delayed
  • Agartala–Akhaura Railway:
    • Goal: Link Tripura to Kolkata via Chittagong Port
    • Status: Stalled amid Bangladesh political turmoil

Act East Policy: Infrastructure Progress (2014–2025)

Conclusion: Balancing Progress with Geopolitical Risk

• Domestic Achievement: The Sairang project marks a major step in domestic integration of Mizoram with India’s rail network.
• International Setbacks: Regional volatility in Myanmar and Bangladesh has significantly hindered India’s outward Act East ambitions.
• Way Forward:
  • Stabilize and secure India’s northeastern border states
  • Strengthen trilateral cooperation with ASEAN via Japan, BIMSTEC, or Quad frameworks
  • Expedite critical infrastructure like Kaladan for seamless trade access

Why is Hong Kong regulating and licensing stablecoins?

Background: What are Stablecoins?

• Definition: Cryptocurrencies pegged to a stable asset (fiat currency, commodity, or algorithmic logic) to reduce volatility.
• Types:
  • Fiat-backed: e.g., USDT (pegged to USD), issued by Tether.
  • Crypto-backed: e.g., DAI, backed by Ethereum-based collateral.
  • Algorithmic: e.g., UST (now defunct), regulated by code rather than reserves.
• Use Cases:
  • Trading pair within crypto exchanges.
  • Protection against local currency depreciation (e.g., Turkey, Argentina).
  • Cross-border remittances (low cost, fast settlement).
  • Daily transaction utility in cash-scarce economies.

Relevance : GS 3( Economy )

Hong Kong’s Stablecoin Ordinance (Effective August 1, 2025)

Prohibitions:

• Illegal to offer or market unlicensed fiat-referenced stablecoins (FRS) to retail investors in Hong Kong.

Mandatory Licensing Requirements:

1. Licence from HKMA (Hong Kong Monetary Authority).
2. Reserve Management:
   1. Backed by fiat or other approved assets.
   1. Reserve transparency and redemption mechanisms mandatory.
3. Compliance Protocols:
   1. Anti-money laundering (AML) and counter-terror financing (CFT) safeguards.
   1. Independent audits and asset disclosures.
4. Limited Licenses:
   1. Initial phase: only a “handful” of licences will be granted to maintain systemic trust.

Why Regulation is Necessary: Data & Global Trends

• Systemic Risk: Rapid issuer expansion can undermine trust if reserves are unverified.
• Historical Collapse: Terra-LUNA (May 2022) – stablecoin UST lost peg → wiped billions of dollars in market cap → global contagion.

International Regulatory Landscape

USA – GENIUS Act (2025):

• 100% Reserve Mandate: Stablecoins must be fully backed by USD or short-term Treasuries.
• Monthly Disclosures: Issuers must publish reserve composition.
• Marketing Rules: Protect consumers from deceptive promotion.

Japan:

• Regulates stablecoins under Payment Services Act.
• Limits issuance to licensed banks and money transfer agents.

Singapore:

• Licensing under Payment Services Act (PSA).
• MAS (Monetary Authority of Singapore) mandates capital and operational risk requirements.

Volatility Despite Stability?

• Causes: Redemption pressures, loss of confidence, poor reserve transparency.
• Impact: Loss of investor wealth, liquidation crises on exchanges, regulatory crackdowns.

India’s Relevance: What Can Be Learnt?

Policy Lessons for India:

• India lacks a dedicated stablecoin law; oversight falls under broader crypto restrictions via RBI.
• Recommendations:
  • Designate stablecoins as a separate class from volatile cryptocurrencies.
  • Mandate reserve disclosure norms with regular audits.
  • Implement licensing and KYC norms like Hong Kong to manage cross-border risk and illicit flows.

Fintech & Digital Rupee Nexus:

• India’s CBDC (e₹) under RBI offers state-backed stability.
• But privately issued stablecoins could foster:
  • Faster remittances (₹84 billion/month in inward remittances).
  • Trade settlement in rupee-linked tokens.
• Regulatory sandbox may explore pilot cases, akin to Singapore’s innovation-driven model.

Way Forward – Global Coordination Needed

• G20 FSB (Financial Stability Board) guidance needed to avoid:
  • Regulatory arbitrage
  • Cross-border misuse of unregulated stablecoins
• BIS Recommendations (2023): Stablecoins should be:
  • Subject to banking-like regulation
  • Held to “same risk, same regulation” principles

Conclusion

• Hong Kong’s Stablecoins Ordinance marks a shift from crypto-libertarianism to centralised accountability.
• It balances innovation with risk mitigation, offering a regulatory template for jurisdictions like India.
• In the long run, global crypto financial systems may hinge on interoperable, transparent, and auditable stablecoin ecosystems.

‘Anything that moves, NISAR will see with unprecedented fidelity’

Mission Overview:

• Launch Date: July 31, 2025
• Agencies: Jointly developed by NASA (USA) and ISRO (India)
• Launch Vehicle & Site: Launched aboard GSLV-F16 from Sriharikota
• Satellite Type: Earth Observation Satellite with dual-frequency SAR (Synthetic Aperture Radar) – a global first

Relevance : GS 3(Science and Technology)

Technological Breakthroughs:

• Dual-frequency SAR:
  • Uses L-band (NASA) and S-band (ISRO) radars
  • First satellite globally to integrate two radar frequencies on a single platform

• High-resolution imaging:
  • Detects surface movements <1 cm over areas as small as half a tennis court

• Massive Reflector:
  • 12-meter (≈40 feet) deployable reflector
  • Would require a 5-mile solid antenna to match resolution without SAR

Core Capabilities:

• Surface Deformation Mapping:
  • Detects subtle shifts in earth’s crust: useful for volcanoes, landslides, earthquakes
• Forest Monitoring:
  • Tracks deforestation, biomass changes, and carbon stock
• Disaster Prediction & Response:
  • Identifies land instability and wildfire risks (via dry fuel detection)
• Post-disaster Assessment:
  • Monitors building shifts, infrastructure damage after earthquakes
• Agricultural Monitoring:
  • Precision farming, crop monitoring, soil moisture mapping

Strategic and Scientific Relevance:

• Climate Change Mitigation:
  • Monitors glacial retreat, sea-level rise, ground subsidence
• Planetary Science Linkages:
  • Data can improve models of planetary interiors (e.g., Mars tectonics)
• Data for Global Earth System Models:
  • Enhances simulation accuracy for hydrological, geological, and atmospheric changes

Calibration Challenges & Innovations:

• Cross-Band Calibration:
  • L-band and S-band feeds are slightly offset; calibrated using corner reflectors
• Thermal Load Issues:
  • Reflector had to be redesigned with heat-resistant coatings after thermal vacuum testing revealed overheating risks
• COVID-induced Delays:
  • Remote collaboration, in-person testing disruption led to 11-year build time

Early Adopters Program:

• 200+ Early Adopters Globally:
  • Farmers, insurers, geologists, infrastructure firms, and climate modelers are preparing to use NISAR data

• Use-Cases:
  • Earthquake early warning systems
  • Infrastructure stress mapping (railways, dams)
  • Risk models for insurance and disaster finance
  • Monitoring crop yield patterns for food security

Commercial & Industrial Demand:

• Widespread Commercial Utility:
  • 75% of NASA’s Earth Observation users are from .com domains
  • 75% of Fortune 100 companies already use EO data
  • Sectors: Agriculture, Insurance, Finance, Transportation, Urban Planning

• Expected Applications from NISAR:
  • Customized analytics for climate-resilient infrastructure
  • Precision agriculture for yield optimization
  • Urban risk zoning and planning

International Collaboration & Diplomacy:

• NASA-ISRO Partnership:
  • A landmark in Indo-US space diplomacy
  • NISAR becomes a symbol of South-North tech collaboration in climate resilience and disaster management
• Technology Transfer:
  • Expertise from JPL’s planetary radar missions now powering earth observation systems

Cost & Engineering Complexity:

• Mission Duration: 11 years in making
• Engineering Feats:
  • Coordination of dozens of subsystems, radar alignment precision
  • Overcame pandemic disruptions, transcontinental assembly and testing

Future Prospects:

• Open-Access Data Policy:
  • ISRO is expected to follow a similar free and open access model
• Capacity Building in South Asia:
  • Potential for data-driven capacity building for disaster response in Nepal, Bangladesh, Sri Lanka
• Potential Legacy:
  • Could catalyze a new generation of hybrid remote sensing satellites combining radar, optical, and hyperspectral instruments