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Current Affairs 05 March 2025

  1. Kerala passes resolution against offshore mining
  2. Designing India’s AI Safety Institute
  3. Government talks big on gender budget, delivers little
  4. What are the issues around delimitation?
  5. How the Wallace line explains the difference in species across continents
  6. States need to protect patients from being fleeced by private hospitals, says SC
  7. India hit targeted maternal mortality rate of 100 deaths per lakh live births: Nadda
  8. IMF: overexposure by NBFCs may imperil financial system


Environmental Concerns:

  • Offshore mining poses a severe threat to Kerala’s fragile marine ecosystem.
  • Deep-sea biodiversity, including fish populations and coral reefs, could be severely impacted.
  • Could lead to ecological imbalances, affecting marine food chains and coastal stability.

Relevance : GS 2 (Governance & Federalism), GS 3 (Environment & Economy, Internal Securuty)

Economic Implications:

  • Kerala’s fishing industry—a major livelihood source—faces potential disruption due to depletion of fish resources.
  • Loss of marine biodiversity would directly affect fishermen and allied industries.
  • Tourism industry (especially coastal tourism) could suffer due to environmental degradation.

National Security Concerns:

  • Offshore mining allows private entities access to strategic minerals, raising security concerns.
  • The presence of foreign companies or private players in deep-sea mining zones could compromise sovereignty over natural resources.

Political and Federalism Aspects:

  • Kerala’s opposition to the Centres move reflects tensions over federalism in resource management.
  • The amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002, enabling private participation, have been criticized for ignoring State concerns.

Legal and Policy Issues:

  • The 2023 amendment allows the Union Ministry of Mines to auction deep-sea mineral blocks, which Kerala claims was done without sufficient consultation with coastal States.
  • Raises questions on environmental clearances and regulatory oversight over private participation in deep-sea mining.


Indias AI Safety Institute (AISI):

  • Announced under the Safe and Trusted Pillar of the IndiaAI Mission.
  • Aimed at mitigating AI risks while promoting indigenous AI development.

Relevance : GS 3(Technology)

Global Precedents:

  • Similar institutes established in the U.K., U.S., Singapore, and Japan.
  • Focus areas include risk evaluation, ethical AI, deepfake detection, cybersecurity, and AI governance.

India-Specific Challenges:

  • AI bias and discrimination: Risk of unrepresentative datasets.
  • Linguistic and technological diversity: Need for inclusive AI solutions.
  • Hub-and-Spoke model: Collaboration between government, startups, academia, and industry.

Indigenous AI Development Initiatives:

  • Startups like Karya addressing unrepresentative data challenges.
  • IndiaAI Mission’s Responsible AI Projects: Ethical AI, watermarking, bias mitigation.

Global Collaboration & Standardization:

  • Need for a global AI safety taxonomy to standardize risk assessments.
  • India’s AISI should support an international AI model notification framework.
  • Reference to the Bletchley Declaration on AI safety.

Indias Role in the Global South:

  • Many emerging economies lack resources for AI safety.
  • India can lead AI safety governance efforts among Global South nations.

Policy Recommendations for AISI:

  • Develop indigenous AI safety tools and frameworks.
  • Align with global AI governance frameworks while ensuring local adaptability.
  • Strengthen collaboration with UNESCO and other international bodies.


Context :India’s AI Safety Institute (AISI):

  • Announced under the Safe and Trusted Pillar of the IndiaAI Mission.
    • Aimed at mitigating AI risks while promoting indigenous AI development.

Relevance : GS 2(Social Issues) , GS 3(Economy)

Global Precedents:

  • Similar institutes established in the U.K., U.S., Singapore, and Japan.
    • Focus areas include risk evaluation, ethical AI, deepfake detection, cybersecurity, and AI governance.

India-Specific Challenges:

  • AI bias and discrimination: Risk of unrepresentative datasets.
    • Linguistic and technological diversity: Need for inclusive AI solutions.
    • Hub-and-Spoke model: Collaboration between government, startups, academia, and industry.

Indigenous AI Development Initiatives:

  • Startups like Karya addressing unrepresentative data challenges.
    • IndiaAI Mission’s Responsible AI Projects: Ethical AI, watermarking, bias mitigation.

Global Collaboration & Standardization:

  • Need for a global AI safety taxonomy to standardize risk assessments.
    • India’s AISI should support an international AI model notification framework.
    • Reference to the Bletchley Declaration on AI safety.

Indias Role in the Global South:

  • Many emerging economies lack resources for AI safety.
    • India can lead AI safety governance efforts among Global South nations.

Policy Recommendations for AISI:

  • Develop indigenous AI safety tools and frameworks.
    • Align with global AI governance frameworks while ensuring local adaptability.
    • Strengthen collaboration with UNESCO and other international bodies.


What is Delimitation?

  • Process of fixing the number of seats and boundaries of constituencies for Lok Sabha and State Legislative Assemblies.
  • Conducted by the Delimitation Commission, constituted by an Act of Parliament.
  • Based on Census data:
    • 1951, 1961, 1971 Census-based exercises conducted.
    • 1971 Census-based seat allocation (543 seats) was frozen to encourage population control measures.
    • Re-adjustment due after 2026 based on the first Census thereafter.

Relevance : GS 2(Polity)

Issues Around Delimitation

1. Uneven Population Growth Across States

  • States like Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan saw high population growth.
  • Southern States (Kerala, Tamil Nadu, Karnataka, Andhra Pradesh) and smaller northern & northeastern States have lower growth rates.

2. Potential Scenarios for Redistribution

  • Scenario 1: Maintain 543 seats but redistribute among States.
  • Scenario 2: Increase the total seats to 848 based on projected population.

3. Disadvantage to Southern & Smaller States

  • If seat distribution is based on projected population, Southern and smaller northern/northeastern States lose political representation.
  • Southern States’ share may reduce from 24% to 19% in Lok Sabha.
  • Could impact federalism, violating the Basic Structure Doctrine.
  • Loss of political bargaining power for States that implemented population control effectively.

4. Lack of Clarity on Pro-RataBasis

  • Home Minister Amit Shah assured no reduction in seats for any State.
  • However, the basis of increase (current share or projected population) remains unclear.

Possible Solutions

1. Capping Lok Sabha Seats at 543

  • Example: U.S. House of Representatives capped at 435 since 1913, despite population growth.
  • India has managed with 543 MPs since 1976 despite population increase from 55 crore to 145 crore.
  • Prevents disadvantaging well-performing States in terms of population control.

2. Increase State Legislative Assembly Seats Instead

  • MPs mainly legislate on Union matters; State issues handled by State governments.
  • Increasing MLAs in State Assemblies ensures better local representation without disturbing national political balance.

3. Ensuring Fair Representation for All Regions

  • Safeguards for federal balance should be introduced to prevent disenfranchisement of any region.
  • Parliamentary consensus needed to maintain equitable representation across States.


What is the Wallace Line?

  • Proposed by Alfred Russel Wallace in the 19th century.
  • Marks a sharp boundary in species distribution between Asia and Australia.
  • Runs between Bali and Lombok, northward between Borneo and Sulawesi, then curving south of Mindanao.
  • Wallace observed distinct species on either side—Asian species like tigers and orangutans versus Australian species like kangaroos and cockatoos.
  • Relevance : GS 1(Geography)

Key Findings on Sulawesi

  • Sulawesi, despite being close to Borneo, hosts unique species from both Asian and Australian origins.
  • Example: Tarsiers and anoas (Asian lineage) vs. dwarf cuscus (Australian marsupial).
  • Wallace struggled to categorize Sulawesi, redrawing his line multiple times.

Geological and Evolutionary Explanations

  • Tectonic Movements:
    • Malay Archipelago formed due to the breakup and drift of landmasses.
    • Australia separated from Antarctica, drifting north toward Asia, creating Indonesia’s volcanic islands.
  • Climatic and Environmental Factors:
    • Oceanic cooling affected species migration.
    • Asian species could migrate via tropical islands, while Australian species faced harsher routes.
    • Study (2023) on 20,000 species confirmed that environmental conditions influenced species dispersal.

Modern Relevance

  • Wallace Line is more of an ecological gradient than a fixed boundary.
  • New technologies (evolutionary modeling, computer simulations) refine our understanding of species adaptation.
  • Conservation concerns:
    • Indo-Malayan archipelago faces high habitat destruction rates.
    • Understanding historical species distribution helps predict responses to climate change and habitat loss.
  • Experts argue redrawing the line is unnecessary; focus should be on biodiversity conservation instead.


Context : SCs Directive to States

  • Supreme Court urges States to frame guidelines preventing private hospitals from overcharging patients.
  • Patients shouldn’t be forced to buy medicines, implants, or devices at inflated prices from hospital-run pharmacies.
  • States must ensure fair pricing without discouraging private investment in healthcare.

Relevance : GS 2(Health ,Judiciary)

Courts Observations

  • Private hospitals play a crucial role in filling gaps in public healthcare.
  • States should balance regulation with the need for private sector participation.
  • The issue falls under State List (health, sanitation, hospitals), requiring State policy decisions.

Background of the Case

  • Petition by Siddharth Dalmia highlighted personal experience of exploitation in a private hospital.
  • SC refrained from ruling on specific allegations but emphasized sensitizing State governments.
  • Court disposed of the petition, focusing on the constitutional framework rather than imposing mandatory conditions.

Significance

  • Highlights growing concerns over healthcare affordability and regulation.
  • Reinforces the need for State-level policies to ensure fair healthcare practices.
  • Balances consumer protection with private sector viability in healthcare.


  • Maternal Mortality Rate (MMR): India has met the National Health Policy (NHP) target of 100 deaths per 1 lakh live births.
  • MMR Decline (1990-2020): 83% drop in India, higher than the global decline.
  • Infant Mortality Rate (IMR): 69% reduction in India vs. 55% global decline.
  • Under-5 Mortality Rate: 75% decline in India, outpacing the global 58% drop.

Relevance : GS 2(Health )

Government Strategy & Policy Directions

  • Mission Steering Group Meeting: Chaired by Union Health Minister J.P. Nadda under National Health Mission (NHM).
  • Implementation Focus: Need for effective execution of healthcare schemes at the grassroots level.
  • Strengthening CMOs: Enhancing the capacities of Chief Medical Officers (CMOs) through training and capacity-building.
  • ASHA Workers’ Role: Emphasis on their empowerment, revised incentives, and honorariums.

Technological & Infrastructure Developments

  • New Initiatives: Bharat Health Initiative for Sahyog Hita and Maitri (BHISHM) introduced.
  • Quality Assurance: Ensuring efficiency and effectiveness of new health technologies and schemes.

Significance

  • Reflects India’s progress in maternal and child healthcare.
  • Strengthening health infrastructure and workforce to sustain improvements.
  • Highlights need for continued investment in training, technology, and incentives for healthcare workers.


Context : Key Findings from IMF’s Report (“India Financial System Stability Assessment”)

Relevance : GS 3(Economy )

  • NBFC Overexposure to Power & Infrastructure:
    • 63% of power sector loans in FY24 came from three large infrastructure financing NBFCs (up from 55% in 201920).
    • 56% of their lending was financed by market instruments, with increasing reliance on bank borrowings since 2019.
    • State-owned NBFCs like IREDA face higher risk.
  • Systemic Risk Concerns:
    • NBFC stress could spill over into the broader financial system.
    • High exposure to infrastructure loans makes them vulnerable to economic shocks.

PSBs’ Vulnerability in a Stagflation Scenario

  • IMF stress test results:
    • Public Sector Banks (PSBs) may struggle to maintain 9% Capital Adequacy Ratio (CAR) in a recession.
    • PSBs should retain earnings instead of paying dividends to strengthen their capital base.
    • Geopolitical risks & monetary policy misalignment could trigger higher interest rates, slowing growth.

Policy Recommendations & Outlook

  • Strengthening PSBs’ capital reserves to withstand economic downturns.
  • Better risk management for NBFCs, especially in the power & infrastructure sectors.
  • Need for regulatory oversight to manage interconnections between NBFCs, banks, and financial markets.

Significance

  • Highlights systemic financial risks from concentrated lending in critical sectors.
  • Calls for prudential regulation to safeguard economic stability.
  • Emphasizes the need for capital buffers in case of economic shocks.

March 2025
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