Current Affairs 29 May 2025

Content :

1. IIP growth at 8-month low of 2.7% in April
2. Nurdle spill is a wake-up call: expert
3. Examining the RBI’s remittances survey
4. Measles vaccine prevented ‘9 crore deaths’ worldwide
5. The importance of the Deputy Speaker
6. Cabinet approves hike in MSP for kharif crops; outlay stands at ₹2.07 lakh crore
7. Inadequate diagnostic services still a critical gap in cancer care in India’
8. Increased outward FDI by Indian firms ‘warrants attention’: Finance Ministry

IIP growth at 8-month low of 2.7% in April

Headline Figure

• IIP growth slowed to 2.7% in April 2025, an 8-month low.
• Last lower reading: 0.0% in August 2024 — suggests waning momentum.

Relevance : GS 3(Indian Economy)

Sector-wise Performance

• Mining & Quarrying:
  • Declined by 0.2% (worst since August 2024).
  • Indicates weak commodity extraction and upstream supply constraints.
• Electricity:
  • Slower growth → possible lower power demand from industries or supply issues.
• Primary Goods & Infrastructure/Construction Goods:
  • Weakness indicates sluggish investment and infrastructure activity.
• Consumer Non-Durables:
  • Indicates muted rural or essential consumption.
  • Reflects subdued demand for everyday goods, despite summer season.

Outlier Performance

• Capital Goods:
  • Grew 20.3% in April 2025.
  • However, base effect significant: April 2024 growth was only 2.81%.
  • Still suggests private and public sector investment push or cyclical recovery in machinery output.

Concerns and Implications

• Broad-based slowdown across production-linked sectors hints at underlying demand weakness.
• Poor mining and electricity data may hurt core industries and downstream production.
• Weak consumer non-durables → possible rural distress or price sensitivity among consumers.
• Contradicts the capital goods surge, showing a mixed recovery picture.

Policy Relevance

• Monetary Policy Implication:
  • Slower IIP may deter further rate hikes by RBI despite inflation concerns.
• Fiscal/Policy Focus:
  • Government may need to accelerate capital expenditure and rural support measures.
  • Focus on demand stimulation in consumer sectors.

Way Forward

• Address supply chain bottlenecks in mining and electricity.
• Sustain capital goods momentum through infrastructure pipeline.
• Monitor inflation-consumption balance to revive non-durable consumption.
• Ensure industrial recovery is broad-based and demand-driven, not just investment-led.

Nurdle spill is a wake-up call: expert

What Happened

• Plastic nurdles (tiny plastic pellets) have washed up on beaches in Thiruvananthapuram (Kerala) following the sinking of the Liberian container vessel MSC ELSA3.
• First major incident of nurdle landings in India due to a shipwreck.

Relevance : GS 3(Environment and Ecology)

Environmental and Ecological Concerns

• Nurdles are primary microplastics (1–5 mm) – raw material for plastic products.
• Though notinherentlytoxic, they pose serious ecological risks:
  • Habitat contamination (coastal and marine ecosystems).
  • Breakdown into micro and nano plastics, which:
    • Enter marine food chains.
    • Cause bioaccumulation and long-term toxic impacts.
    • Disrupt marine biodiversity.

Impacts on Marine Life and Humans

• Can be ingested by marine organisms, causing:
  • Internal injuries, starvation, and reproductive harm.
  • Indirect human exposure through seafood consumption.
• Nurdles adsorb toxic pollutants (e.g., persistent organic pollutants) from seawater.

Materials Identified

• Pellets found were LDPE (Low-Density Polyethylene) and HDPE (High-Density Polyethylene):
  • LDPE is particularly hard to recycle.
  • Commonly used in bags, films, tubes, bottles, crates, medical items.

Disaster Management Response

• Rapid Response Teams formed under the State Pollution Control Board.
• Volunteers are cleaning beaches; police drones deployed for surveillance.
• Focus on removing:
  • Plastic granules.
  • Oil slicks and hazardous substances endangering marine life and fishermen.

Larger Lessons and Warnings

• Described as a “wake-up call” for India’s:
  • Coastal zone management.
  • Shipping regulations and safety.
  • Marine pollution preparedness.
• Need for proactive regulations on marine plastic transport and emergency spill response.

Way Forward

• Strengthen marine pollution control laws.
• Implement mandatory safety and containment protocols for plastic cargo.
• Develop early warning systems and dedicated marine clean-up units.
• Raise community awareness and volunteer mobilization mechanisms.
• Promote alternatives to plastic and improve recycling infrastructure, especially for LDPE.

Examining the RBI’s remittances survey

Significance of Remittances in India’s External Sector

• Inward remittances touched a record $118.7 billion in 2023-24, surpassing FDI inflows.
• Remittances financed over half of India’s merchandise trade deficit, offering crucial macro-stability.
• Despite their importance, remittances receive less policy attention compared to FDI or trade.

Relevance : GS 3(Indian Economy)

Structural Shifts in Source Countries

• Advanced Economies (AEs) now dominate over GCC countries as remittance sources.
  • U.S. share rose to 27.7%, overtaking earlier dominance by GCC nations.
  • Combined share of U.S., U.K., Canada, Australia, and Singapore = 51.2%, vs GCC’s 37.9%.
• Reflects shift in migrant profile: from low-skilled West Asia workers to high-skilled professionals/students in AEs.

Implications of the Shift

• Higher income and stable earnings in AEs make inflows more resilient to commodity or cyclical shocks.
• However, long-term remittances may decline as migrants settle permanently, reducing economic ties to India.

Growing Skew in Transaction Sizes

• Transfers over ₹5 lakh = 29% of total value, but only 1.4% of transactions.
• Indicates growing dominance of high-income migrants in remittance flows.
• Raises vulnerability risks: any curb on high-skilled migration (e.g., via stricter visa regimes) could hurt inflows.

Rise of Digital Remittance Channels

• Digital transactions = 73.5% of all remittances in 2023-24.
• Transaction costs have dropped to 4.9%, below global avg. (6.65%) but above SDG target (3%).
• Growth attributed to fintech and app-based transfers.

Corridor-Wise Digital Disparities

• High digital use in UAE (76.1%) and Saudi Arabia (92.7%).
• Low digital penetration in Canada (40%), Germany (55.1%), Italy (35%).
• Points to infrastructure and regulatory bottlenecks in some corridors.
• India needs to enhance cross-border digital payment integration.

Sub-National Disparities

• Maharashtra, Kerala, Tamil Nadu = 51% of remittance share.
• Bihar, U.P., Rajasthan = under 6%.
• Root causes: uneven migration infrastructure (language training, credentialing, employer linkages).
• Need for state-responsive skilling missions to democratize migration opportunities.

Missing Data on Remittance Usage

• Survey lacks insight on household-level usage of remittances.
• Important to know whether inflows are for:
  • Consumption smoothing (basic needs), or
  • Asset creation and savings (long-term development).
• Data gap hinders design of remittance-linked savings/investment products and financial literacy programs.

Key Concerns for Policymakers

• Over-reliance on elite migrants and large transactions is risky.
• Digital divide and state-level inequalities need to be bridged.
• Lack of data on usage limits developmental planning.
• Calls for inclusive, data-driven remittance policy architecture.

Measles vaccine prevented ‘9 crore deaths’ worldwide

Historical Context of Measles

• 60 years ago, over 90% of children worldwide were infected by measles.
• Of those infected, about 25% required hospitalization.
• Measles was a highly contagious airborne virus, affecting nearly every child before vaccination.

Relevance : GS 2(Health ,Governance)

Development and Impact of the Measles Vaccine

• The first effective measles vaccine was developed by John Enders in 1963.
• Vaccination efforts initially scaled up in richer countries, then globally in the 1970s and 1980s.
• Over the last 50 years, measles vaccinations have prevented over 9 crore (90 million) deaths worldwide.
• Vaccines reduce the risk of contracting measles by a factor of 20.

Role of Other Factors in Decline of Deaths (Not Cases)

• In countries like the U.S., deaths from measles fell pre-vaccine due to:
  • Better treatment of secondary infections.
  • Improved sanitation, hygiene, and nutrition.
• However, these did not reduce measles cases, as it spreads through airborne transmission.
• Before vaccines, the U.S. still saw ~50,000 hospitalizations and hundreds of deaths annually.

Disparities in Measles Impact Between Rich and Poor Countries

• Measles deaths remained high in low- and middle-income countries until vaccines became widely available.
• In the 1980s, the case fatality rate in such countries was 5-10%.
• Africa and Southeast Asia recorded thousands of deaths annually from measles during the 1980s–2000s.

Scale-up of Vaccination and Global Health Initiatives

• Dramatic drop in deaths from the 2000s onward, especially in Africa, due to scaled-up vaccination efforts.
• The Expanded Programme on Immunisation (EPI) by the World Health Assembly (from 1970s) significantly improved coverage.
• By early 2000s, vaccination reached 9 crore children (60% of infants globally).

Remaining Gaps and Gavi Vaccine Alliance

• Despite progress, millions of children—mostly in poorer countries—were still unvaccinated.
• The Gavi Vaccine Alliance (est. 2000) was created to close these gaps.
• Currently, over 100 million infants (80% of children globally) receive measles vaccines.

Regional Impact and Lives Saved

• Measles vaccination has dramatically reduced child mortality worldwide.
• Greatest lives saved in:
  • Africa: 2.9 crore (29 million)
  • Southeast Asia: 2.0 crore (20 million)
• These regions had measles as a leading cause of child mortality until recently.

Summary: Measles Vaccine’s Public Health Success

• One of history’s most successful vaccination programs.
• Prevented millions of deaths, changed the trajectory of measles globally.
• Continues to require efforts to reach remaining unvaccinated children to sustain progress.

The importance of the Deputy Speaker

Constitutional and Parliamentary Importance of Deputy Speaker

• The Deputy Speaker’s role is not just a substitute for the Speaker but essential for continuity of legislative work.
• Article 93 of the Constitution mandates election of the Deputy Speaker “as soon as” the Lok Sabha meets, showing urgency and necessity.
• Article 94 states the Deputy Speaker holds office until resignation, removal, or disqualification.
• Article 180 empowers the Deputy Speaker to perform the Speaker’s duties if the Speaker’s office is vacant.
• The position ensures checks and balances by facilitating effective debates and smooth functioning of the parliamentary system.

Relevance : GS 2(Polity and Constitution)

Conventional Practice and Political Harmony

• Traditionally, the Speaker is from the ruling party, and the Deputy Speaker is offered to the Opposition to foster bipartisanship.
• This convention promotes harmony between ruling party and Opposition, strengthening democratic governance.
• The Deputy Speaker often presides over sensitive sessions, committees, and debates, serving as a neutral arbiter.

Current Scenario: Prolonged Vacancy

• The Deputy Speaker post has been vacant for six years, covering the entire 17th Lok Sabha and continuing into the 18th.
• This vacancy violates constitutional provisions (Articles 93, 94, 180) and the Lok Sabha’s Rules of Procedure (Rule 8).
• The government has allegedly refused to appoint an Opposition member to this post, breaking the convention.
• The vacancy centralizes authority in the Speaker and ruling party, undermining democratic pluralism.

Constitutional and Democratic Implications

• The phrase “as soon as may be” in Article 93 is not clearly defined, leading to misinterpretation and delay.
• Prolonged vacancy creates a constitutional vacuum and crisis risk, especially if the Speaker resigns or is incapacitated.
• It undermines democratic resilience by weakening parliamentary checks, diluting Opposition participation, and concentrating power.
• The failure to appoint a Deputy Speaker represents a departure from consensus-driven politics and parliamentary traditions.

Summary

• The Deputy Speaker is a constitutional necessity, vital for maintaining the parliamentary balance.
• The long-standing vacancy is a threat to democratic values and constitutional governance.
• Upholding the tradition of offering the post to the Opposition is crucial for political harmony and effective functioning of the Lok Sabha.

Cabinet approves hike in MSP for kharif crops; outlay stands at ₹2.07 lakh crore

Overview of MSP Hike

• The Cabinet Committee on Economic Affairs, led by PM Narendra Modi, approved an increase in the Minimum Support Price (MSP) for 14 kharif crops for the marketing year 2025-26.
• The total financial outlay for procurement under MSP is estimated at ₹2.07 lakh crore.
• The MSP hike aims to provide remunerative prices to farmers, encouraging crop production and protecting farmer incomes.

Relevance : GS 3(MSP , Agriculture)

Specific Increases in MSP

• Highest absolute MSP increase is for:
  • Nigerseed: ₹820 increase (from ₹8,717 to ₹9,537 per quintal)
  • Ragi: ₹596 increase (from ₹4,290 to ₹4,886)
  • Cotton: ₹589 increase for medium staple (from ₹7,121 to ₹7,710) and ₹589 for long staple (from ₹7,521 to ₹8,110)
  • Sesamum: ₹579 increase (from ₹9,267 to ₹9,846)

MSP Margin over Cost of Production

• The expected profit margin (MSP minus production cost) is highest for:
  • Bajra (Pearl millet): 63% margin
  • Maize: 59% margin
  • Tur (Pigeon pea): 59% margin
  • Urad (Black gram): 53% margin
• Other kharif crops have margins around 50%, ensuring significant income above production costs.

Policy Alignment and Promotion of Nutri-Cereals

• The MSP hike aligns with the Union Budget 2018-19 commitment to maintain MSP at 1.5 times the weighted average cost of production nationally.
• The government is promoting nutri-cereals (“Shree Anna”) cultivation by offering higher MSPs, supporting diversification and nutrition security.

Procurement Trends

• Procurement of 14 kharif crops increased substantially:
  • 7,871 lakh tonnes procured during 2014-15 to 2024-25.
  • Compared to 4,679 lakh tonnes during 2004-05 to 2013-14.
• This rise indicates improved MSP implementation and government support mechanisms.

Implications

• The MSP hike is expected to:
  • Enhance farmer incomes and rural livelihoods.
  • Encourage crop diversification towards nutrient-rich crops.
  • Support government goals of food security and agricultural sustainability.
• However, higher MSPs may lead to increased fiscal outlays and may require efficient procurement and distribution mechanisms.

‘Inadequate diagnostic services still a critical gap in cancer care in India’

Rising Cancer Burden in India

• India currently records nearly 200,000 new cancer cases annually.
• Cancer cases in India are projected to reach 2.08 million by 2040, a 57.5% increase from the 2020 figure.
• India ranks third globally in the number of cancer cases, after China and the USA.

Relevance : GS 2(Health)

Diagnostic Challenges and Late Detection

• Inadequate diagnostic services remain a major gap in cancer care, hampering early detection.
• Delayed diagnosis leads to many patients presenting with advanced-stage cancers.
• More than 60% of breast cancer patients in India are diagnosed at Stage 3 or 4, compared to about 60% of U.S. patients being diagnosed at Stage 0 or 1 (early stages).
• Over 50% of patients experience delays exceeding three months before seeking medical care.

Breast Cancer Specifics

• Breast cancer is the most common cancer among Indian women and a leading cause of cancer-related deaths.
• Indian patients are diagnosed at a younger age compared to patients in high-income countries.
• Lower survival rates in India are due to:
  • Late-stage presentation.
  • Delayed initiation of treatment.
  • Fragmented or inadequate treatment protocols.
• The National Academy of Medical Sciences (NAMS) has set up a task force to develop comprehensive guidelines for breast cancer management.

Broader Context of Cancer in Asia

• Asia houses 60% of the global population but accounts for:
  • 50% of global cancer cases.
  • 58% of global cancer-related deaths.
• The high burden emphasizes the urgent need for enhanced cancer care infrastructure in India and across Asia.

Systemic Gaps in Cancer Care

• Key shortcomings identified include:
  • Limited and inadequate diagnostic facilities.
  • Insufficient and fragmented treatment modalities.
  • Low levels of public awareness about early symptoms and the importance of timely medical intervention.

Implications and Urgency

• The increasing cancer burden requires:
  • Strengthening diagnostic infrastructure nationwide.
  • Promoting early detection and screening programs, especially for high-risk cancers like breast cancer.
  • Increasing public awareness and education to reduce delays in seeking care.
  • Developing standardized treatment protocols and ensuring accessibility.
• Failure to address these gaps could lead to worsening outcomes and increased mortality rates.

Increased outward FDI by Indian firms ‘warrants attention’: Finance Ministry

Rising Outward FDI by Indian Firms

• Indian overseas direct investment (FDI) increased by nearly $12.5 billion in FY25, despite global economic uncertainty.
• This surge in outward FDI warrants attention due to its contrast with cautious domestic investment by Indian companies.

Relevance : GS 3(Indian Economy)

Domestic Investment Caution

• Indian private sector shows growing caution about investing within India.
• Data from the Centre for Monitoring Indian Economy (CMIE) reveals a rising ratio of cancelled projects to new projects announced.
• The ratio of dropped projects to new announcements rose to 36% in 2024-25, up from:
  • 30.8% in 2023-24
  • 21.8% in 2022-23
• This marks a reversal from a declining trend observed since 2018-19.

Economic Context

• Global economic scenario remains uncertain and volatile.
• Despite this, Indian firms are expanding their investments overseas, which is notable given the caution shown domestically.
• This divergence suggests Indian companies may be seeking better growth opportunities or stability abroad compared to the domestic market.

Implications for Policy and Economy

• Increased outward FDI could mean:
  • Capital flight risk if domestic opportunities are perceived as less attractive.
  • Possible loss of domestic jobs and investment.
  • Shift in India’s role in the global economy as an investor country.
• The Finance Ministry flags the need to monitor this trend closely for potential impacts on domestic economic growth.

Need for Encouraging Domestic Investment

• The rising cancellation of domestic projects indicates challenges such as:
  • Regulatory hurdles.
  • Market uncertainties.
  • Lack of investor confidence.
• Policy measures may be needed to revive domestic private investment and reduce project cancellations.

Summary

• The simultaneous rise in outward FDI and domestic investment caution is an important economic signal.
• It underscores the need for balanced growth strategies that encourage firms to invest within India while exploring global opportunities.