Current Affairs

Inflation

Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc.

Inflation measures the average price change in a basket of commodities and services over time.

The opposite and rare fall in the price index of this basket of items is called ‘deflation’.

Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency. This could ultimately lead to a deceleration in economic growth.

However, a moderate level of inflation is required in the economy to ensure that production is promoted.

 

Measures Inflation in India

• Inflation is measured by a central government authority, which is in charge of adopting measures to ensure the smooth running of the economy. In India, the Ministry of Statistics and Programme Implementation measures inflation.

• In India, inflation is primarily measured by two main indices — WPI (Wholesale Price Index) and CPI (Consumer Price Index) which measure wholesale and retail-level price changes, respectively. The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics etc, which Indian consumers buy for use.

 

Consumer Price Index (CPI)

• It measures price changes from the perspective of a retail buyer. It is released by the National Statistical Office (NSO).

• The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics etc, which Indian consumers buy for use.

• The CPI has several sub-groups including food and beverages, fuel and light, housing and clothing, bedding and footwear.

 

Four types of CPI are as follows:

• CPI for Industrial Workers (IW).

• CPI for Agricultural Labourer (AL).

• CPI for Rural Labourer (RL).

• CPI (Rural/Urban/Combined).

Of these, the first three are compiled by the Labour Bureau in the Ministry of Labour and Employment. Fourth is compiled by the National Statistical Office (NSO) in the Ministry of Statistics and Programme Implementation.

• Base Year for CPI is 2012.

• The Monetary Policy Committee (MPC) uses CPI data to control inflation.

 

Wholesale Price Index (WPI)

• It measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses.

• Published by the Office of Economic Adviser, Ministry of Commerce and Industry.

• It is the most widely used inflation indicator in India.

• Major criticism for this index is that the general public does not buy products at wholesale price.

• The base year of All-India WPI has been revised from 2004-05 to 2011-12 in 2017.

 

Akash missile:

Akash is India’s first indigenously produced medium range SAM that can engage multiple targets from multiple directions and it can be launched from mobile platforms like battle tanks or wheeled trucks. It has nearly 90% kill probability.

• The development of the Akash SAM was started by the DRDO in the late 1980s as part of the Integrated Guided Missile Development Programme.

 

It is unique in the way that It can simultaneously engage multiple targets in group mode or autonomous mode.

• It has built-in Electronic Counter-Counter Measures (ECCM) features, which means that it has mechanisms on-board that can counter the electronic systems that deceive the detection systems.

• The missile is supported by the indigenously developed radar called 'Rajendra’.

• It can engage targets at a speed 2.5 times more than the speed of sound and can detect and destroy targets flying at low, medium, and high altitudes.

• The missile is reportedly cheaper and more accurate than US’ Patriot missiles due to its solid-fuel technology and high-tech radars.

 

Integrated Guided-Missile Development Programme

• It was conceived by Dr. A.P.J. Abdul Kalam to enable India to attain self-sufficiency in the field of missile technology. 

The 5 missiles (P-A-T-N-A) developed under this program are:

• Prithvi: Short-range surface-to-surface ballistic missile.

• Agni: Ballistic missiles with different ranges, i.e. Agni (1,2,3,4,5)

• Trishul: Short-range low-level surface-to-air missile.

• Nag: 3rd generation anti-tank missile.

• Akash: Medium range surface-to-air missile.

 

Defence Research & Development Organisation

• It is the Research & Development wing of the Ministry of Defence, Govt of India, with a vision to empower India with cutting-edge defence technologies.

• It was established in 1958 after combining the Technical Development Establishment (TDEs) of the Indian Army and the Directorate of Technical Development & Production (DTDP) with the Defence Science Organisation (DSO).

 

Tuberculosis

About:

• TB is caused by a bacterium called Mycobacterium tuberculosis, belonging to the Mycobacteriaceae family consisting of about 200 members.

• Some of Mycobacteria cause diseases like TB and Leprosy in humans and others infect a wide range of animals.

• In humans, TB most commonly affects the lungs (pulmonary TB), but can also affect other organs (extra-pulmonary TB).

• TB is a very ancient disease and has been documented to have existed in Egypt as early as 3000 BC.

• TB is a treatable and curable disease.

 

Reasons for High TB Incidence in India

• Most Indians still do not know the symptoms of TB, and doctors rarely order enough TB tests, while a staggering one million cases remain unreported in India.

• The accurate, reliable and affordable diagnostics and testing both for drug-sensitive and drug-resistant remain inaccessible to most of the India’s population.

• The Nikshay Poshan Yojana, faces gaps in implementation, and its amount for support - a mere Rs 500 remains inadequate for the TB-affected patients.

• It aims to support every TB Patient by providing a Direct Benefit Transfer
(DBT) per month for nutritional needs.

 

Context :-

• Recent attacks on ships in the Red Sea trade route and the ongoing drought problem at the Panama Canal have raised worries about global trade disruptions.

Key Issues in the Red Sea and Panama Canal Presently

Red Sea:

Issue: 

• Chemical tanker MV Chem Pluto was struck by a drone attack, approximately 200 nautical miles off Gujarat's coast.

• MV Chem Pluto is a Liberia-flagged, Japanese-owned, and Netherlands-operated chemical tanker. 

It had started its journey carrying crude from Al Jubail, Saudi Arabia and was expected to arrive in New Mangalore, India.

 

Panama Canal:

• Issue: Due to drought conditions, shipping through the 51-mile stretch of the 

Panama Canal has decreased by over 50%.

• A naturally occurring El Nino climate pattern associated with warmer-than-usual water in the central and eastern tropical Pacific Ocean is contributing to Panama's drought.

Impact:

• This shortage of water is compelling vessels traveling from Asia to the US to opt for the Suez Canal, adding six extra days compared to the Panama Canal route.

• While the Bab-el-Mandeb Strait that leads to the Suez Canal in the Red Sea region connects Asia to Europe, the 100-year-old Panama Canal connects the Atlantic and Pacific Oceans.

• Both these routes are among the busiest in the world.

 

Significance of Maritime Transport in Global Trade

• Unrivaled Volume and Value Carrier: Maritime transport shoulders a colossal 80% of global trade by volume and over 70% by value, far surpassing other modes of transportation as per the United Nations Conference on Trade and Development.

• As of 2019, the total value of the annual world shipping trade had reached more than 14 trillion US Dollars.

• Environmental Considerations: While shipping does contribute to around 3% of global greenhouse gas emissions, it is relatively more fuel-efficient and emits less per ton of cargo transported compared to other modes of transportation like air freight.

• Energy Transportation: The majority of the world's energy resources, such as oil and natural gas, are transported by sea. Tankers carry these resources from production areas to consuming regions, playing a critical role in meeting global energy demands.

 

• India's logistics sector has undergone significant scrutiny and development in recent years. Tracked through metrics such as the Logistics Performance Index (LPI), India has shownimprovement, rising to the 38th position out of 139 countries in 2023 from its 54th ranking in 2014.

• Logistics involves the organization, coordination, storage, and transportation of various resources, including people, raw materials, inventory, and equipment, between different locations such as production points, consumption areas, distribution centers, or other production sites.

 

National Logistics Policy 2022:

• Complementing the Gati Shakti Initiative, the National Logistics Policy (NLP), launched in 2022 focuses on ensuring swift last-mile delivery, resolving transport-related challenges, saving time and costs for the manufacturing sector, and enhancing overall efficiency in the logistics sector.

• It targets a reduction in logistics costs to global benchmarks, attaining a top 25 LPI ranking. 

 

Infrastructure Development and International Shipments:

• The LPI report reveals a noteworthy advancement in India's infrastructure score, moving up five places from 52nd in 2018 to 47th in 2023.

• Government investments in both soft and hard trade-related infrastructure, connecting port gateways on both coasts to major economic centers in the interior, have contributed to improvements in international shipments.