Current Affairs 07 May 2025

Content:

1. India, U.K. conclude landmark trade deal
2. India up three spots to 130 among 193 nations in HDI, but inequality persists
3. Food vs fuel: Surge in ethanol blending and its impacts
4. How the judiciary maintains accountability
5. What are the challenges faced by the civil services?
6. Centre plans revision of ‘safe harbour’ clause
7. Govt. amends satellite Internet service rules

India, U.K. conclude landmark trade deal

Key Highlights of the Agreement

• Zero Duties on Indian Exports:
  • 99% of Indian exports to the UK will now face zero tariffs.
  • Covers almost 100% of India’s current export value to the UK.

• Tariff Reduction by India:
  • India will cut duties on 90% of tariff lines for UK goods.
  • 85% of these will become zero-tariff within 10 years.

• Double Contribution Convention:
  • Indian workers in the UK and their employers will be exempt from UK social security payments for 3 years.
  • A major relief for Indian professionals on temporary assignments.

Relevance : GS 2(International Relations),GS 3(Indian Economy)

Sectoral Gains

For India:

• Textiles, Leather, Jewelry, Engineering goods to get expanded access.
• Enhanced competitiveness in UK markets due to zero-duty advantage.
• Increased employment in export-focused MSMEs.

For the UK:

• Alcoholic Beverages:
  • Tariff on whisky and gin to drop from 150% to 75% immediately, then to 40% by year 10.
• Automobiles:
  • Tariffs to reduce from 100%+ to 10% under a quota-based system.
• Other Goods:
  • Reduced tariffs on cosmetics, lamb, salmon, aerospace parts, medical devices, chocolates, soft drinks, biscuits.

Strategic and Diplomatic Significance

• First Major FTA for UK post-Brexit with a large economy.
• Strengthens India–UK strategic partnership across trade, people-to-people ties, and mobility.
• Facilitates UK’s Indo-Pacific tilt and enhances India’s standing as a reliable trade partner.
• Boosts India’s image ahead of elections and in G20 diplomacy context.

Economic Implications

For India:

• Expected to boost exports, especially in labour-intensive sectors.
• FDI attraction likely to rise in export-oriented manufacturing.
• May add over $10 billion to bilateral trade in the medium term.

Challenges:

• Indian industries may face competition from UK goods, especially in premium consumer sectors.
• Automobile sector concerns over cheap UK imports despite quotas.

Political & Policy Impact

• Seen as a win for Government’s foreign trade agenda.
• Labour government in the UK under Keir Starmer showcases continuity from Conservative-initiated talks.
• UK businesses gain a large emerging market access amid EU market complexities.

India up three spots to 130 among 193 nations in HDI, but inequality persists

Context : India’s HDI Ranking & Score (2023)

• Rank: 130 out of 193 countries (up from 133 in 2022).
• HDI Score: Increased to 0.685 (from 0.676 in 2022).
• Category: Remains in the Medium Human Development group.
• Threshold: Now closer to the High HDI threshold (≥ 0.700).

Relevance : GS 3(Growth and Development)

Key Progress Areas

Economic Growth

• Gross National Income (GNI) per capita:
  • $9,046.76 in 2023 (up from $2,167.22 in 1990).
  • More than four-fold increase over three decades.

Poverty Reduction

• 135 million people moved out of Multidimensional Poverty (2015–16 to 2019–21).

Health Indicators

• Life expectancy:
  • Reached 72 years in 2023 (up from 58.6 in 1990).
  • Highest ever for India; shows strong recovery post-COVID.

Persistent Challenges

Inequality Impact

• Inequality-adjusted HDI loss:
  • 30.7% (one of the highest in the Asia-Pacific region).
  • Significantly reduces India’s effective human development gains.

Gender Disparities

• Low female labour force participation.
• Underrepresentation of women in politics.
• However, the women’s reservation bill (33% legislative seats) is a positive step.

Education & Income Gaps

• Despite improvements in health and education inequality, income inequality remains sharp.

Global Context

• The global pace of HDI improvement is now the slowest since 1990.
• Inequality between low and very high HDI countries has widened for 4 consecutive years.
• COVID-19, economic shocks, and geopolitical crises have reversed prior development gains.

Policy & Development Implications

• India needs to:
  • Strengthen inclusive growth, especially in rural areas.
  • Promote gender equity in jobs and political spaces.
  • Invest further in quality education, health access, and social security.
• Recent constitutional reforms and social sector missions (like Poshan Abhiyaan, Skill India, Ayushman Bharat) align with HDI goals but require faster and more equitable implementation.

Food vs fuel: Surge in ethanol blending and its impacts

Ethanol Blending Progress & Targets

• India achieved 20% ethanol blending in petrol in FY25 — five years ahead of the original 2030 target.
• New goal: 30% blending in the near future, to reduce fossil fuel dependence and oil imports.
• Ethanol for blending is primarily derived from sugarcane — juice, syrup, and molasses.

Relevance : GS 3(Energy Security)

Rising Ethanol Supply

• Ethanol supply from sugarcane increased from 40 crore litres in FY14 to ~670 crore litres in FY24.
• The surge followed:
  • Lifting of bans on using sugarcane juice/syrup/B-heavy molasses for ethanol.
  • Reduction in GST on ethanol for blending.
• Ethanol Blending Programme (EBP) evolved from a stagnant early phase to a rapid acceleration.

Sugarcane Production Trends

• Peaked at 490croretonnes in FY23, but is declining:
  • Estimated 435 crore tonnes in FY25.
• Factors for the decline:
  • Red-rot disease in major producing states.
  • Deficient rainfall.
  • Flowering issues in crops.
• In response, the Fair Remunerative Price (FRP) for sugarcane was increased to protect farmers.

Retail Sugar Price Impact

• Sugar prices rose from ₹40/kg (May 2023) to ₹45/kg (May 2025).
• Key price drivers:
  • Falling production.
  • Increased diversion of sugar for ethanol.
  • Global supply pressures and domestic demand.

Food vs Fuel Trade-Off

• As ethanol demand grows, more sugarcanegetsdiverted, risking:
  • Reduced availability of sugar for direct consumption.
  • Further price hikes, especially in lean production years.
• The Centre is exploring grain-based ethanol (e.g., maize, surplus rice) to compensate.
• Critics caution against this shift leading to new food security challenges if not carefully managed.

Broader Implications

• Sustainability benefits:
  • Reduces carbon emissions.
  • Cuts crude oil imports.
  • Provides farmers with alternate income.
• Risks:
  • Undermining food affordability and nutrition access.
  • Environmental strain due to monocropping (e.g., water-intensive sugarcane).

Conclusion: The Balancing Act

• The government must:
  • Ensure food security and price stability.
  • Diversify ethanol sources (grains, waste biomass).
  • Invest in second–generation biofuels (non-food-based).
  • Prioritize sustainable cropping patterns and water management.

How the judiciary maintains accountability

Judicial Powers Are Constitutionally Bound

• Source of Power: All judicial powers are vested in the Constitution, not outside it.
• Judges must operate within the constitutional framework; exceeding it amounts to “proved misbehaviour” (Ground for removal under Article 124(4) for Supreme Court judges).
• This ensures accountability to the Constitution, not personal discretion.

Relevance : GS 2(Judiciary,Parliament ,Separation of Powers)

Separation of Powers as a Check

• As reaffirmed in L. Chandra Kumar v. Union of India (1997):
  • Judicial independence is secured by the separation of powers.
  • However, if judges breach this boundary, it becomes a constitutional violation (especially of Article 50 – separation of judiciary from executive).

Impeachment Mechanism for Accountability

• Article 124(4): A judge can be removed for “proved misbehaviour or incapacity”.
• The procedure involves a parliamentary process, thereby making judges answerable to democratic oversight, though through a rigorous standard to protect judicial independence.

Judiciary’s Power to Uphold Popular Sovereignty

• The President and Governors, as heads of the executive, must act within the bounds of popular sovereignty (i.e., reflect the will of the legislature).
• The judiciary directing them to act within a timeframe for assent is to protect democratic principles, not to override them.

Rule of Law and the Judiciary

• The rule of law is central to India’s constitutional democracy.
• The Vice-President’s claim that “the law does not apply to judges” undermines this principle.
• Judges are not above the law — they are subject to constitutional scrutiny and removal mechanisms.

Judicial Review as a Duty, Not Overreach

• Judiciary is empowered to review executive and legislative actions (Articles 32, 226).
• Article 142: Supreme Court has the power to do complete justice — a unique provision that helps it fill gaps when no specific law exists.
• This does not make it a ‘super parliament’, but a guardian of the Constitution.

Parliamentary Power to Override Judgments

• If needed, Parliament can make new laws to override judicial decisions (unless they violate fundamental rights or the basic structure).
• This balances judicial interpretation with legislative supremacy, reaffirming popular sovereignty.

Conclusion

• The judiciary is accountable to the Constitution, subject to removal for violations, and acts within its assigned role of constitutional interpretation.
• Calling it a “super parliament” or implying immunity from law misrepresents constitutional checks and balances.

What are the challenges faced by the civil services?

Civil services in India play a crucial role in governance but face several challenges that hinder their effectiveness. These challenges range from political interference to issues with accountability and expertise.

Relevance : GS 4(Civil Service Ethics)

Challenges Faced by the Civil Services

• Erosion of Neutrality: Increasing political interference has led to a decline in bureaucratic impartiality.
• Political Influence in Postings/Transfers: Excessive control by the political executive affects morale and independence.
• Lack of Domain Expertise: Generalist bureaucrats often lack technical knowledge required for specialized roles.
• Corruption: Persistent corruption at various levels, often unpunished, hampers trust and effectiveness.
• Outcome Deficiency: The bureaucracy remains focused on procedures and inputs, rather than measurable outcomes and impact.
• Resistance to Reform: Institutional inertia and internal resistance slow down administrative innovation and reform.

Frameworks Under Which the Bureaucracy Functions

• Merit System: Recruitment through competitive exams (e.g., UPSC) ensures selection based on merit and aims to create a politically neutral, professional cadre.
• Rule of Law and Constitutionalism: Bureaucrats are expected to uphold constitutional values, provide independent advice, and implement government policies lawfully.
• Democratic Mandate: While respecting the authority of elected representatives, civil services are expected to function impartially and without fear or favour.
• Permanent Executive: Acts as a stabilizing institution during political transitions (e.g., during President’s Rule or elections).
• Public Accountability Mechanism: Though often weak in practice, the bureaucracy is expected to be accountable through legislative oversight, administrative rules, and citizen engagement.
• Lateral Entry (Reform-Oriented Framework): Involves inclusion of domain experts into senior roles to bridge the expertise gap and drive reform.

Centre plans revision of ‘safe harbour’ clause

Context

• Safe Harbour Clause (Section 79, IT Act 2000): Grants intermediary platforms immunity from liability for user-generated content if they comply with government-prescribed due diligence.
• Current Proposal: I&B Ministry plans to revisit this immunity to hold platforms accountable for not removing “fake news.”
• Trigger: Recent incidents like the Pahalgam terror attack led to blocking of fake news-spreading YouTube channels, including Indian ones.

Relevance : GS 2(Digital Governance, Social Issues)

Government’s Concerns and Plans

• Curbing Fake News: The government wants intermediaries to proactively remove false content, not just respond to takedown notices.
• Due Diligence Reforms: Proposal to revise guidelines to ensure platforms self–monitor and take preventive action against misinformation.
• Statutory Fact Check Unit: A push to give legal authority to the PIB Fact Check Unit to classify and act on fake content.

Legal and Constitutional Dimensions

• Freedom of Speech: Any law or rule affecting content moderation must balance againstArticle 19(1)(a) (freedom of expression) and comply with Article 19(2) (reasonable restrictions).
• Bombay High Court Judgment: Struck down powers of PIB Fact Check Unit, stating it went beyond constitutional and legal limits.
• Government Response: MeitY plans to file an SLP (Special Leave Petition) in the Supreme Court challenging the Bombay HC ruling.

Challenges in Implementation

• No New Law Yet: The I&B Ministry prefers self-regulation over a statutory framework, citing the need for broader consultation.
• Ambiguity in Enforcement: Lack of clear legal mandate may lead to selective enforcement or perceived censorship.
• Conflict Between Ministries: Overlapping jurisdictions of MeitY and I&B may lead to regulatory confusion.

Broader Implications

• Accountability vs. Censorship Debate: Moves to restrict safe harbour could lead to concerns over government overreach and curbing of dissent.
• Global Precedents: Similar debates ongoing in the EU (Digital Services Act) and US (Section 230 of the Communications Decency Act).
• Tech Platform Liability: Increasing trend toward making platforms responsible for the content they host, especially concerning misinformation and hate speech.

Govt. amends satellite Internet service rules

Context :Key Amendments to Satellite Internet Service Rules

• Unified Licence (UL) and GMPCS Authorisation: Amendments to these regulations are designed to govern satellite Internet services in India, including services like Starlink.
• Surveillance Compliance: The amendments introduce additional requirements, such as enabling web traffic surveillance, aligning satellite Internet services with the same standards as telecom and broadband providers.
• Geofencing Requirement: Satellite terminals purchased in India must be disabled when used abroad, ensuring signal spillover does not occur in sensitive regions like border areas.

Relevance : GS 2(Governance) ,GS 3(Technology)

Impact on Starlink and Other Satellite Providers

• Starlink’s Challenges: Starlink, owned by Elon Musk, is facing delays in obtaining authorisation and satellite spectrum needed for operations in India.
• Terminal Restrictions: Indian-purchased satellite terminals must be disabled internationally, which limits the flexibility of Indian customers who may want to use them in other countries.
• Manufacturing Mandate: The government has set a requirement that satellite terminals be manufactured in India within five years, adding to the operational complexity for foreign service providers.

Government’s Intent and Justification

• National Security: The geofencing and surveillance requirements are framed to ensure that satellite connectivity can be monitored and intercepted within India, especially in sensitive border areas.
• Regulatory Oversight: The goal is to ensure the Indian government has full control over satellite communication services, maintaining security and governance.

Potential Challenges and Concerns

• Compliance Burden: The additional compliance requirements, especially for geofencing and local manufacturing, may increase operational costs for service providers like Starlink.
• Customer Impact: Indian consumers could face limitations on the use of satellite Internet devices outside of India, which could deter some customers from choosing satellite services.
• Delayed Launch: These amendments further complicate the timely rollout of satellite services, adding bureaucratic delays to an already prolonged approval process for Starlink.

Broader Implications

• Attractiveness of Satellite Internet: These regulations could dampen the appeal of satellite Internet services for customers seeking international flexibility and seamless global connectivity.
• Strategic Importance: As satellite Internet becomes more crucial for remote and underserved areas, the government’s regulatory framework seeks to ensure security while managing the infrastructure’s local impact.
• Global Trade and Tech: The move may signal India’s push to promote local manufacturing in the tech sector, balancing between foreign tech partnerships and domestic industry growth.