Daily News Summary
Get concise and efficient summaries of key articles from prominent newspapers. Our daily news digest ensures quick reading and easy understanding, helping you stay informed about important events and developments without spending hours going through full articles. Perfect for focused and timely updates.
News Summary
- Economics (Indian Economy)
- Schemes in News
- Economics (Macroeconomics)
- Polity and Governance
- Social Issues
- Science and Technology
- International Relations
- Modern Indian History
- Geography
- Environment
- Indian Society
- Security
- Ancient Indian History
- Ethics
- Basic Science (Biology)
- Art and Culture
An unlikely mystery: studies shed new light on how genes are made
- The Hindu |
- Science and Technology |
- 2025-01-13
- DNA
- chromosomes
The article discusses recent studies on gene creation, highlighting findings from the University of Nevada and Max Planck Institute. It explores gene duplication, methylation's role in mutation, and the evolutionary significance of random DNA sequences acting as incipient genes.
Introduction to DNA and Genes
Each DNA molecule consists of two strands held together by base pairs. The human genome comprises 3.2 billion base pairs, which define individual genetic makeup. Identical twins have identical genes, whereas non-identical twins share only 50% of their genes, highlighting genes as key determinants of individuality.
Research on Gene Creation
In December 2024, two research groups investigated gene formation:
- The University of Nevada, Reno, published their study in Molecular Biology and Evolution.
- The Max Planck Institute for Evolutionary Biology, Plön, Germany, reported findings in Genome Biology and Evolution.
Genetic Structure and Inheritance
The human genetic setup includes 24 chromosomes, numbered 1 to 22 plus the sex chromosomes X and Y. Humans inherit one set of genome from each parent, resulting in two genome sets per individual. Identical twins originate from a single zygote, while non-identical twins come from two separate zygotes.
Gene Expression and Function
- A gene is a segment of DNA, typically a few thousand base pairs long.
- Gene expression involves transcribing DNA to messenger RNA (mRNA), which in turn synthesizes proteins.
- There are 20,000 protein-coding genes and an equal number for RNA that influences other gene expressions.
Gene Duplication and Mutation
Susumu Ohno's theory from 1970 suggested that new genes arise from gene duplication. The University of Nevada, Reno, addressed gene duplication by observing increased DNA methylation in duplicated genes, reducing protein over-expression's negative effects and promoting mutation for new functions.
Experiment on Random DNA Sequences
- Max Planck Institute researchers inserted random DNA sequences into human cells.
- Resulting proteins were random, and after 20 days, cell type abundance varied, indicating random sequences could influence evolution.
Significance of Blood Groups
Blood groups (A, B, AB, O) are determined by variants of the ABO gene. Despite their apparent non-essentiality, all variants have been retained through evolution in humans and primates, showcasing evolutionary complexity.
Declining fertility levels push up Kerala’s maternal mortality rate
- The Hindu |
- Social Issues |
- 2025-01-13
- Demographic Transition
- Maternal Mortality Ratio
Kerala's maternal mortality ratio (MMR) is increasing despite having the lowest rate in India, due to declining birth rates rather than an actual rise in maternal deaths.
Kerala's Maternal Mortality Ratio (MMR) and demographic trends
Current MMR Situation
- Kerala's MMR is the lowest in India at 19 per lakh live births.
- Recent trends show a steady increase in MMR, primarily due to a decrease in the number of live births rather than an increase in maternal deaths.
- The State's live births have dropped significantly from an annual average of 5-5.5 lakh to 3,93,231 in recent records.
Impact of Declining Birth Rates
- Fertility levels and demographics shifts are impacting Kerala's social structure.
- The birth rate fell below the five-lakh mark in 2016 and has continued to decrease.
- The total fertility rate (TFR) has dropped to 1.46 in 2021, indicating that most couples have one or no children.
Challenges in Achieving Sustainable Development Goals (SDGs)
- Kerala's MMR target of 20 by 2030 appears unreachable due to falling birth rates.
- Addressing medical causes of maternal mortality is not sufficient as demographic changes influence MMR.
- Factors like low fertility rates and societal attitudes towards marriage and childbirth are significant contributors.
Demographic Transition and Its Consequences
- Kerala led demographic transition in South India, achieving replacement level fertility in 1987-88.
- The elderly population is expected to surpass the child population in the next decade, posing challenges for care and welfare.
- Higher age at marriage and delayed childbearing lead to increased pregnancy-related morbidities among older mothers.
Concerns and Future Implications
- The reproductive age group's female population is dwindling, with many opting against marriage or childbirth.
- Projected decline in birth rate and its stark consequences are expected within two decades.
- Errors in birth registration and lack of data on abortions impact understanding of live birth numbers.
In summary, Kerala's rising MMR, despite being relatively low, is attributed to declining live births rather than increased maternal deaths. The state faces challenges from demographic shifts, falling fertility rates, and societal changes, which affect its ability to maintain a stable population and achieve its MMR targets. These trends underscore the need for comprehensive policy responses to address the evolving demographic landscape.
The reforms needed in the MEA
- The Hindu |
- International Relations |
- 2025-01-13
- MEA
- Indian Foreign Service
The article critically examines the Ministry of External Affairs' staffing and structure amidst India's growing global influence.
Ministry of External Affairs: Challenges and Recommendations
India's rise on the global stage, bolstered by economic growth and strategic autonomy, necessitates an efficient organizational structure within the Ministry of External Affairs (MEA). This structure is critical for sustaining India’s expanded global role, as evidenced by successful initiatives like its G20 presidency and leadership in vaccine diplomacy.
Current Staffing and Structural Challenges
- The MEA employs approximately 850 Indian Foreign Service (IFS) officers across 193 embassies and consulates, which is significantly less compared to the U.S. (14,500), the U.K. (4,600), and Russia (4,500).
- The annual intake has increased but remains insufficient. It would take decades to reach an optimal workforce of 1,500 officers.
- Fragmentation within MEA's divisions affects efficiency. For example, India's immediate neighborhood is split among four divisions, leading to oversight risks.
Proposed Solutions
- Lateral hiring from other government services, like defense personnel and academics, should be pursued with strict selection and probation criteria.
- Reorganize internal divisions to reduce fragmentation and improve coordination.
- Enhance incentives for officers in India by providing better housing, medical coverage, and financial allowances.
Language and Specialist Roles
- Ensure that language-trained officers are posted appropriately to leverage their skills and reduce dependency on interpreters.
- Encourage officers to specialize in areas such as cybersecurity, space policy, and artificial intelligence, hiring domain experts for these roles.
Efforts and Future Directions
- The MEA has created divisions like Policy, Planning and Research to adapt to global trends.
- The leadership of Dr. S. Jaishankar has been pivotal in aligning foreign policy with India's aspirations of becoming a "Viksit Bharat" (Developed India) by 2047.
Concerns arise over two dozen Olive Ridley sea turtle carcasses washing ashore along ECR
- The Hindu |
- Environment |
- 2025-01-13
- Sea Turtle
The discovery of 28 sea turtle carcasses along Chennai's coast, particularly near Nemmeli Kuppam, has alarmed conservationists. Concerns are raised over fishing gear entanglements, prompting the Forest Department to enhance awareness among fishermen and recommend increased patrols.
Sea Turtle Mortality Concerns along Chennai Coast
Overview
Recent findings of sea turtle carcasses along the Chennai coast have raised substantial concerns among conservationists regarding the alarming mortality rates.
Locations and Observations
- Injambakkam: Eight older remains of turtle carcasses were found.
- Nemmeli Kuppam:
- Twenty carcasses discovered along a one-kilometre stretch.
- Most turtles appeared to have been dead for some time.
Potential Causes
- Fishing Gear Entanglement:
- Turtles may have drowned after becoming entangled in fishing nets.
- Fishermen removing turtles might inadvertently release them back in a comatose state, leading to delayed deaths.
- Groynes and Sea Structures:
- Groynes at Nemmeli Kuppam are intended to prevent erosion but may impact turtles.
Conservation Efforts and Challenges
- Ongoing efforts to raise awareness among fishermen include planned sensitisation sessions.
- Lack of data from previous years makes it challenging to assess whether current mortality rates are unusual.
Recommendations to Authorities
- Increased patrols in turtle hotspots recommended to the Indian Coast Guard and Fisheries Department.
- Stricter enforcement of fisheries regulations suggested.
India’s data protection rules need some fine-tuning
- The Hindu |
- Social Issues |
- 2025-01-13
- DPDP Act, 2023
- DPDP Rules
On January 3, 2025, India's Ministry of Electronics and Information Technology released the Draft Digital Personal Data Protection Rules, marking a significant step towards regulating digital personal data.
Draft Digital Personal Data Protection (DPDP) Rules, 2025
On January 3, 2025, the Ministry of Electronics and Information Technology (MeitY) released the Draft Digital Personal Data Protection (DPDP) Rules, marking a significant step in India’s efforts to regulate digital personal data. This follows the passing of the DPDP Act, 2023, and represents a shift from the previously criticized Personal Data Protection Bill.
Principles-Based Framework
- India's approach departs from the EU’s GDPR, favoring a less prescriptive, principles-based framework.
- Emphasis on simplicity and clarity is intended to reduce "consent fatigue" among users.
- The framework focuses on outcomes rather than prescribing processes, thereby empowering users without overwhelming businesses.
Protection for Children's Data
- Stricter protections are established for processing children's data.
- Exemptions are provided for educational institutions and health services for activities like behavioral monitoring, which benefit children’s educational outcomes.
Flaws and Challenges
- The rules introduce complexities concerning cross-border data flows.
- Potential data localisation mandates for Significant Data Fiduciaries (SDFs) could lead to regulatory arbitrage.
- Ambiguities remain regarding how businesses can authenticate data requesters or charge for excessive requests.
- Concerns exist about whether the government can access sensitive business data.
Need for Procedural Integrity
- Procedural integrity is crucial to ensure sensitive data remains secure.
- Businesses need safeguards to manage information requests effectively.
- The rules should address data protection as a critical aspect of business reputation and continuity, not just a regulatory obligation.
Future Considerations
- India needs to move beyond notice-and-consent mechanisms to protect privacy, especially as technologies like IoT, 5G, and AI evolve.
- Public consultations are essential to refine the draft rules, balancing innovation, economic growth, and individual rights.
The article emphasizes that while the DPDP rules offer a more flexible approach compared to the EU’s GDPR, certain areas require further clarity and refinement. This includes addressing procedural integrity and ensuring the rules accommodate industry-specific needs without stifling innovation.
In trial attempt at docking, SpaDeX satellites successfully come 3 metres to each other: ISRO
- The Indian Express |
- Science and Technology |
- 2025-01-13
- ISRO
- SpaDeX Mission
ISRO successfully maneuvered SpaDeX satellites to within 3 meters apart in orbit, aiming for space docking capability. This achievement would position India as the fourth country to master space docking, essential for future complex missions like Chandrayaan-4.
ISRO's SpaDeX Mission
Overview of Recent Events
- The Indian Space Research Organisation (ISRO) conducted a significant maneuver with two SpaDeX satellites, bringing them as close as 3 meters apart in orbit.
- After the maneuver, the satellites were moved to a safe distance, with the entire process being closely monitored for data analysis.
- The satellites initially began 230 meters apart and were methodically brought closer at different distances like 105 meters, 15 meters, and finally 3 meters.
- The docking attempts were postponed earlier due to alignment issues, with previous attempts on January 7 and January 9.
Docking Plan
- The docking procedure involves the Chaser satellite progressively approaching the Target satellite.
- The sequence of distances includes 5 km, 1.5 km, 500 m, 225 m, 15 m, and finally 3 m.
- Upon successful docking, ISRO aims to demonstrate the transfer of electrical power and control commands between the satellites.
- A successful docking would position India as the fourth nation to achieve space docking, following the USA, Russia, and China.
Implications of SpaDeX Mission
- Space docking capability is crucial for missions requiring larger payloads that a single launch cannot accommodate.
- Chandrayaan-4 is expected to be the first Indian mission necessitating this capability, with plans to bring lunar samples back to Earth.
- Future requirements include setting up the Bharatiya Antariksh Station, with plans to launch the first module in 2028 and a human mission to the Moon anticipated before 2040.
Iran to Expand Fleet with Warship, Stealth Drones, IRNA Reports
- The Economic Times |
- International Relations |
- 2025-01-13
- Islamic Republic News Agency
Iran is set to enhance its military capabilities with the acquisition of a new warship and around 1,000 advanced drones featuring stealth and precision targeting. This development coincides with nationwide military drills focusing on nuclear facility defense.
Iran's Military Advancements
Iran is poised to enhance its military capabilities with the introduction of a new warship and a fleet of advanced drones, as reported by the state-run Islamic Republic News Agency.
Key Information
- The announcement was made by Rear Admiral Habibollah Sayyari, the Army’s coordinating deputy.
- The fleet will consist of approximately 1,000 drones.
- Features of the drones include:
- Stealth capabilities
- High explosive power
- Long-range capability
- Precision targeting
- Details regarding the new warship are limited, but it is expected to enhance the Iranian Navy's combat capabilities significantly.
Strategic Context
- The announcement coincides with nationwide military drills conducted by Iran's armed forces.
- These exercises are aimed at neutralizing potential threats, particularly focusing on the security of the country’s nuclear facilities.
Lifts to computers: 4 of 10 Govt tenders can’t comply with Make in India rules
- The Indian Express |
- Economics (Indian Economy) |
- 2025-01-13
- DPIIT
- Make-In-India
The article addresses challenges in enforcing the 2017 Make-In-India order for government procurement, highlighting widespread non-compliance with rules favoring domestic suppliers. Approximately 40% of high-value tenders were flagged for violations, often specifying foreign brands.
Enforcement Challenges of the 2017 Make-In-India Order in Government Procurement
The implementation of the 2017 Make-In-India order in government procurement faces numerous challenges. This order aims to prioritize domestic suppliers by prohibiting tenders that specify foreign brands or set eligibility conditions unfavorable to local firms. However, compliance has been inconsistent.
Key Findings on Non-Compliance
- Over 40% of high-value tenders (worth Rs 64,000 crore) by government departments were marked "non-compliant" with the 2017 rules by the Department for Promotion of Industry and Internal Trade (DPIIT).
- Foreign brands are often preferred for products like CCTV cameras, medical supplies, and desktop computers due to perceived superior economic and quality factors.
- From October 2021 to February 2023, 936 out of 1,750 high-value tenders did not comply with the rules, valued at Rs 53,355 crore.
Tender Classification and Compliance
- In 2020, tender classification was introduced, requiring local content of more than 50% for primary suppliers.
- By November 2023, 1,502 out of 3,590 high-value tenders (42%) did not conform to the order, with 982 tenders omitting the provisions, 450 specifying foreign brands, and 152 having restrictive turnover requirements.
Departmental Compliance and Issues
- Some departments, including Military Affairs and Atomic Energy, had not updated procurement policies as per the 2017 order.
- By April 2024, key ministries such as Telecommunications and Electronics had not incorporated the 2020 amendments into their procurement rules.
- Common restrictive practices identified included specifying brands like Cisco for telecom products and Otis for lifts, despite their local manufacturing presence.
Challenges Noted by Officials
- A lack of supply response from domestic suppliers is a significant challenge, as mandates alone do not ensure availability or quality.
- Procurement entities sometimes specify foreign brands due to technical requirements that local suppliers cannot meet.
Committee of Secretaries (CoS) and Compliance Reporting
- In February 2023, the CoS highlighted issues related to excessive turnover requirements and brand-specific tenders violating both the 2017 order and General Financial Rules.
- Ministries were directed to address violations and ensure accountability.
- Compliance reporting has been weak, with only a few ministries like Railways and Power submitting regular reports by April 2024.
Case Studies and Grievances
- Instances of corrective action include AIIMS, Jodhpur cancelling a tender after grievances about restrictive requirements and brand specifications.
- The Confederation of Indian MSME in ESDM & IT successfully contested a tender requiring foreign certifications for local suppliers.
EAM to Represent India at Trump Swearing-in Event
- The Economic Times |
- International Relations |
- 2025-01-13
- iCET
- 47th President
External Affairs Minister S. Jaishankar will attend Donald Trump's swearing-in as the 47th US president on January 20. His visit will include meetings with the incoming administration and discussions on Modi's US visit, Trump's India visit, and the Quad Summit.
India's Representation at Donald Trump's Swearing-In Ceremony
External Affairs Minister S Jaishankar will represent India at the swearing-in ceremony of Donald Trump as the 47th President of the United States on January 20.
Agenda and Meetings
- Jaishankar will engage in meetings with representatives of the incoming administration and dignitaries visiting the US.
- Key focus areas include:
- Planning for Prime Minister Narendra Modi’s potential US visit.
- Donald Trump’s prospective visit to India.
- Preparations for the Quad Summit hosted by New Delhi.
- Discussions on Trump’s tariff plans.
Previous Engagements
This visit marks Jaishankar’s second trip to the US since December.
- He previously met with the outgoing administration and members of Trump’s team to review bilateral ties and discuss the incoming administration's agenda.
US-India Initiative on Critical and Emerging Technology (iCET)
Recent Developments
- Earlier this month, outgoing US National Security Advisor Jake Sullivan visited New Delhi to review iCET.
- New initiatives were announced in emerging technologies:
- Artificial intelligence
- Semiconductors
- Biotech
- Defence innovation
Nuclear Technology Cooperation
Sullivan announced efforts to remove Indian companies from restriction lists concerning nuclear technology, facilitating the civil nuclear cooperation with India.
Coal India Looking for Lithium Brine Assets in Argentina
- The Economic Times |
- Economics (Macroeconomics) |
- 2025-01-13
- Argentina
- Critical Minerals
Coal India Ltd (CIL) is diversifying into critical minerals, particularly lithium, by exploring opportunities in Argentina. The company has invited expressions of interest for technical due diligence on lithium brine assets, aiming to reduce coal reliance and support clean energy trends.
CIL's Strategic Diversification into Critical Minerals
Coal India Ltd (CIL), a major state-owned mining company in India, is aiming to diversify its operations by venturing into the critical minerals sector, with a particular focus on lithium brine assets in Argentina. This move is part of a broader strategy to reduce dependence on coal and to align with global trends that emphasize the importance of these minerals in clean energy technologies.
Key Initiatives by CIL
- Target Countries:
- Argentina
- Australia
- Chile
- Expressions of Interest (EoI): CIL has invited EoIs from experienced consultants to conduct technical due diligence on lithium brine assets in Argentina.
Significance of Critical Minerals
Recognizing the economic and strategic importance of minerals such as lithium (Li), nickel (Ni), and cobalt (Co), Coal India Ltd is taking steps to ensure it remains relevant in the era of clean energy technologies.
Official Statements
- A senior Coal India official stated that critical minerals are indispensable for India's future industrial strategy, indicating the company's commitment to adapting to contemporary industrial needs.
Greatest challenge for innovation in India is cultural. Families want their children to be safe, not take risks
- The Indian Express |
- Science and Technology |
- 2025-01-13
- Innovation
- AIM 1.0
- Sivakasi
Chintan Vaishnav, former Mission Director of Atal Innovation Mission, discusses India's innovation challenges, emphasizing cultural shifts, rural innovation, and the need for startups to adapt to global standards.
Overview of Atal Innovation Mission (AIM) Achievements and Challenges
The discussion with Chintan Vaishnav, former Mission Director of Atal Innovation Mission, highlights significant achievements and ongoing challenges in the realm of innovation and entrepreneurship in India.
Achievements of AIM 1.0
- Increase in the number of Atal Tinkering Labs from 6,000 to over 10,000 across 722 districts, with 66% in rural areas and 95% in schools.
- Establishment of 101 Atal Incubation Centres and 50 Community Innovation Centres.
- Completion of most targets under the Atal New India challenges for ministries, with some challenges still ongoing.
Interest in Innovation Among Indian Society
The appetite for innovation is evident, with a significant number of schools participating in the Atal Tinkering Labs program. The labs provide a unique environment free from the pressures of exams, allowing students to engage in problem-solving and innovation.
Cultural Challenges to Innovation and Entrepreneurship
- Families often prioritize safety over risk-taking, affecting young entrepreneurs.
- There is a lack of trust between academia and business sectors, and skepticism about the government's efficiency in collaborating with the private sector.
Case Study: Innovation in Sivakasi
An example of regional innovation is the Atal Tinkering Lab in Sivakasi, where students developed a safer method for mixing chemicals in firecracker manufacturing. This project attracted interest from university faculty, demonstrating the potential for real-world problem-solving to enhance educational experiences.
Challenges in India's Startup Ecosystem
Research and Development (R&D) Spending
Despite a vibrant startup ecosystem, India lags behind the US and China in creating original work due to low R&D spending by big businesses. There is a need for a shift in mentality towards investing in research that may not immediately improve profit margins but could prevent industry obsolescence.
The Role of H1B Visas and Global Politics
Changing political landscapes in the US and Europe regarding H1B visas impact the global startup ecosystem. The focus should be on mutual value propositions and leveraging existing international networks.
Funding and the Economic Gap
- Initial funding for startups often relies on family support, with a need to expand risk funding options.
- A large portion of India's GDP comes from vernacular businesses, which have yet to fully engage with the startup ecosystem.
Innovation in Services vs. Manufacturing
Current Trends in Innovation
- Youth entrepreneurs favor the services sector, especially SaaS and e-commerce, due to faster returns and lower initial investment requirements.
- This trend is expected to continue, with deeper pockets potentially leading to more manufacturing innovations.
Exploring New Sectors
India is making strides in sectors like semiconductors, driven by large firms. However, changes in supply chains, such as shifts away from China and Taiwan, require strategic education and skill development.
Education and Innovation Ecosystem
Integrating Tinkering Labs with Traditional Education
- Efforts are underway to reserve seats in institutions like IITs for students excelling in innovation to balance the focus on traditional academic pathways.
- Parental involvement in innovation exhibits is encouraged to broaden acceptance and understanding.
Teacher Involvement and Training
Teachers are crucial to fostering innovation in schools. Initiatives in regions like Jammu Kashmir demonstrate the potential impact of comprehensive teacher training.
Long-term Vision for Innovation
Building India's innovation ecosystem is expected to be a multi-decade effort, requiring institutional changes and a shift from exam-centric education systems to more innovative approaches.
Microfinance delinquencies nearly double to over Rs 28,000 crore in a year
- The Indian Express |
- Economics (Macroeconomics) |
- 2025-01-13
- Microfinance Sector
- Portfolio at Risk (PAR)
The microfinance sector in India is witnessing a surge in delinquencies, especially in key states, despite a decline in NPAs for banks. Over-leveraging, debt waivers, and operational issues contribute to rising portfolio risks, impacting sector growth prospects.
Microfinance Sector Delinquencies in India
The microfinance sector in India is currently facing a significant rise in delinquencies, despite the overall banking sector experiencing a 12-year low in non-performing assets (NPAs).
Current Delinquency Statistics
- Microfinance loans to low-income groups have seen the Portfolio at Risk (PAR) — loans overdue by 31-180 days — double to Rs 28,154 crore by September 2024 from Rs 14,617 crore a year ago.
- The delinquency rate in the 31-180 days overdue category increased to 6.8% of the total portfolio of Rs 4.14 lakh crore as of September 2024, up from 3.8% of Rs 3.84 crore in September 2023.
- The incremental rise in PAR was Rs 8,117 crore for the quarter ending September, with a total increase of Rs 13,468 crore for the 12 months ending September, according to the CRIF High Mark report.
- PAR was 4.6% of advances in June 2024.
Geographical Concentration and Contributing Factors
- Bihar, UP, Tamil Nadu, and Odisha accounted for 62% of the incremental delinquency, with Bihar alone seeing a Rs 1,715 crore increase in the three months ending September 2024.
- Key factors for the decline in portfolio quality include over-leverage by borrowers, debt-waiver campaigns, high field-staff attrition, elections, and extreme weather conditions.
Sectoral Impact and RBI Regulations
- Rising delinquencies may increase credit costs for NBFC-MFIs, impacting microfinance sector growth.
- The Reserve Bank of India has set a common household loan limit of Rs 300,000 to qualify as microfinance, applicable to all sector entities.
Outlook and Challenges
- India Ratings and Research (Ind-Ra) revised the microfinance sector outlook to deteriorating from neutral, maintaining a ‘Stable’ rating for FY26.
- Challenges include borrower overleveraging, reduced center attendance, high branch-level attrition, and frauds leading to higher operating and credit costs.
- Ind-Ra expects near-term challenges to continue, with recovery anticipated in the second half of FY26.
- Recent regulatory actions on some entities, concerns about loan pricing, and an increase in risk-weighted assets have heightened lender concerns.
CP, CD rates harden amid tight liquidity conditions in the market
- Business Standard |
- Economics (Macroeconomics) |
- 2025-01-12
- Certificate of Deposit
- Commercial Paper
- Open Market Operations
Commercial paper and certificate of deposit rates have risen due to tightening liquidity, driven by the Reserve Bank of India's interventions. Liquidity deficits have escalated, decreasing from Rs 4.6 trillion to Rs 0.4 trillion, highlighting the need for RBI measures.
Impact of Tightening Liquidity on Financial Markets
Commercial Paper (CP) and Certificate of Deposit (CD) Rates
- Increase in CP Rates: CP rates have risen by 10-13 basis points (bps) in January, indicating higher borrowing costs for short-term funds.
- Increase in CD Rates: CD rates have increased by 20-30 bps across tenures, reflecting tighter liquidity. Current CD rates are between 7.40% and 7.51%, up from last month's 7.10% to 7.20%.
Liquidity Conditions
- Tight Liquidity: Systemic liquidity is constrained due to the Reserve Bank of India (RBI) interventions, leading to increased CP and CD rates.
- Liquidity Deficit: The liquidity deficit reached Rs 2 trillion as the RBI made payments on maturing buy/sell swap agreements without rollovers.
- RBI Forex Interventions: Heavy RBI intervention in the forex market to stabilize the rupee has further reduced rupee liquidity.
RBI's Potential Measures
- Combination of Instruments: According to Gaura Sen Gupta, the RBI might need to employ a mix of Open Market Operations (OMO), buy-sell swaps, and possibly a Cash Reserve Ratio (CRR) cut to infuse liquidity.
- Magnitude of Liquidity Infusion: The required liquidity infusion is substantial, necessitating the use of multiple instruments.
Additional Economic Observations
- Stakeholder Discussions: NFRA to release papers for audit questions; AIFs seek government funds for startups.
- Foreign Portfolio Investment (FPI) Trends: FPIs have withdrawn Rs 22,194 crore in January amidst a weak earnings outlook and rising dollar.
- Market Influences: Inflation data, Q3 earnings, and FII trading are expected to influence market movements.
- Market Valuation Impact: The market capitalization of five of the top-ten valued firms fell by Rs 1.85 trillion, with HDFC Bank significantly affected.
N Korean troops in Ukraine gain experience, cementing alliance with Russia
- Business Standard |
- International Relations |
- 2025-01-12
- Russia
- North Korea
- Ukraine Conflict
The article discusses the deployment of North Korean troops to support Russian forces in the Kursk region amid the ongoing conflict with Ukraine.
North Korean Troops in the Ukraine Conflict
In recent developments in the Ukraine conflict, North Korean troops have been reported to bolster Moscow's forces, marking a new phase in the war. This development has significant implications for Ukraine and globally, as these troops gain combat experience.
Arrival and Adaptation of North Korean Troops
- North Korean troops were initially inexperienced but have adapted quickly on the battlefield.
- Their presence signifies a strategic alliance between Moscow and Pyongyang following a military assistance agreement.
- Ukrainian troops describe North Koreans as disciplined and more professional compared to Russian soldiers, despite some outdated tactics.
Impact and Strategic Implications
- North Korea has sent approximately 10,000-12,000 troops to support Russia in the Kursk region, although Moscow has not publicly acknowledged this.
- Their involvement aids Moscow's strategy by providing substantial manpower, despite the lack of modern warfare experience.
- Control over Kursk is strategically significant for Ukraine, potentially influencing ceasefire negotiations.
Evidence and Challenges
- North Korean troops have been seen wearing Russian uniforms and using their own weapons, complicating identification.
- Intercepted communications have confirmed their presence through North Korean accents.
- North Korean troops are gaining valuable experience with modern warfare technologies, such as drones.
Battlefield Experiences and Evolution
- Initial setbacks were due to inexperience, resulting in heavy losses from drones and artillery.
- Drones have transformed the battlefield, requiring adaptation from traditional combat strategies.
- The troops' disciplined routines and adaptation are expected to enhance their future combat effectiveness.
North Korean POWs and Cultural Factors
- Only two North Korean soldiers have been taken as prisoners of war due to their no-surrender policy.
- Capture is seen as a disgrace in North Korean culture, reinforcing resistance to surrender.
International Responses and Consequences
- North Korea's battlefield experience and technological gains pose a future threat to regional stability.
- Nations need to prepare for the potential implications of North Korea's enhanced military capabilities.
- There is concern about North Korea leveraging its improved capabilities for global military engagements and sales.
In conclusion, the involvement of North Korean troops in the Ukraine conflict represents a complex and evolving situation with significant implications for regional and global security dynamics.