Current Affairs 18 March 2025

Content:

1. India’s goods trade deficit at 42-month low following dip in gold, crude imports
2. The barriers faced by construction workers
3. Why are electoral reforms necessary?
4. SC to examine petition on CAG appointment process
5. How climate change is affecting India’s wheat production cycle

India’s goods trade deficit at 42-month low following dip in gold, crude imports

Context : Trade Deficit Decline:

• India’s goods trade deficit fell to $14.05 billion in February 2025, marking a 42-month low.
  • The trade deficit was $22.9 billion in January 2025 and $19.5 billion in February 2024.

Relevance : GS 3(Economy)

• Import Trends:
  • Gold & Silver Imports:
    • Dropped to $2.7 billion, the lowest since June 2024 ($2.5 billion).

• Crude & Petroleum Imports:Declined to $11.89 billion, the lowest since July 2023 ($11.81 billion).

• Overall Imports:Fell to $50.9 billion, the lowest in 22 months.YoY contraction: -16.3% compared to February 2024.

• Export Trends:
  • Total Exports: $36.9 billion in February 2025.
  • YoY Decline: -10.84% compared to February 2024.
  • Reason for Decline:
    • Base year effect due to leap month, as per ICRA’s Chief Economist Aditi Nayar.

• Macroeconomic Perspective:
  • The trade deficit in February 2025 was significantly lower than the FY2025 average (over $23 billion in the first 10 months).

Implications

• Lower gold, silver, and crude imports contributed to reducing the trade deficit.
• Weaker global demand and domestic slowdown might have impacted exports.
• A narrowing trade deficit could ease pressure on India’s current account balance.

The barriers faced by construction workers

Sector Overview

• Construction industry contributes 9% to India’s GDP, projected to reach $1.4 trillion by 2025.
• Workforce expected to grow to 3 crore by 2030.
• Labour shortages raised as a concern by Larsen & Toubro CMD N. Subrahmanyan.

Relevance : GS 2(Social Issues)

Challenges Faced by Construction Workers

• Fragmented employment:
  • Frequent relocations, job insecurity, inconsistent welfare access.

• Legal framework issues:
  • BOCW Act, 1996 provides for worker welfare, but implementation is weak.
  • ₹70,000 crore construction cess collected, but 75% remains unutilised.

• Barriers to Welfare Access:
  • Lack of documentation (ID proof, residence proof, birth certificates).
  • Employment certificate (90-day work validation) often denied by employers.
  • State-wise variations in verification protocols create confusion.

• Inefficiencies in welfare disbursement:
  • Digital infrastructure gaps lead to delays in benefit transfers.
  • Seasonal employment disruptions (e.g., heat waves, pollution bans) worsen financial insecurity.
  • No inter-State portability—workers lose benefits when relocating.

Proposed Solutions

1. Unified National Labour Identification System:
   1. Similar to One Nation One Ration Card for inter-State benefit portability.
   1. Linking BOCW registrations with UAN on e-Shram to ensure access across States.

• Digital Public Infrastructure:
  • Open-source centralized welfare portal with standard workflows.
  • Aadhaar-linked verification to reduce administrative delays.

• Simplifying Documentation Requirements:
  • Accepting alternative proofs to ease registration.
  • Conducting on-site bulk registrations for large construction projects.

• Skill Development and Workplace Standards:
  • Training programs to address labour shortages.
  • Ensuring safe and dignified work conditions to improve retention.

Why are electoral reforms necessary?

Context : Legal Provisions and Evolution of Voting Process

• Article 324: Empowers the Election Commission (EC) to supervise and control elections in India.
• Representation of the People Act, 1950 & Registration of Electors Rules, 1960: Governs electoral rolls and voter registration.
• Evolution of Voting:
  • 1952 & 1957: Separate ballot boxes for each candidate.
  • 1962: Introduction of ballot papers with names and symbols.
  • 2004: EVMs used in all constituencies.
  • 2019: VVPAT slips introduced for transparency.

Relevance : GS 2(Election System)

Key Issues in Electoral Process

• EVM & VVPAT Controversy:
  • Supreme Court rejected a PIL demanding a return to paper ballots.
  • Matching of 100% VVPAT slips with EVM count denied; currently, only 5 EVMs per constituency are verified.
  • Court allowed second/third-placed candidates to request verification of 5% of EVMs within 7 days of results.

• Electoral Roll Manipulation Allegations:
  • Accusations of fake voters added to electoral rolls, especially in Maharashtra & Delhi elections.
  • Identical EPIC numbers in different states (West Bengal, Gujarat, Haryana, Punjab) raised concerns.
  • EC explained that duplication arose due to earlier decentralised EPIC allocation before ERONET integration.

Issues in Election Campaigns

• Abusive Campaigning: ‘Star Campaigners’ often violate the Model Code of Conduct (MCC) with communal rhetoric and defamatory remarks.

• Election Expenditure Violations:
  • Candidates exceed spending limits, but no cap exists for political parties.
  • 2024 Lok Sabha elections estimated at₹1,00,000 crore.
  • High expenditure fuels corruption and the quid pro quo system.

• Criminalization of Politics:
  • 46% of MPs (251 out of 543) in 2024 have criminal cases.
  • 31% (170 MPs) face serious charges like murder, rape, and kidnapping.

Required Electoral Reforms

• EVM & VVPAT Reforms:
  • Scientific determination of VVPAT verification sample size, ensuring one error leads to full VVPAT count in that region.
  • Introduction of ‘Totaliser’ machines (recommended by EC in 2016) to aggregate votes from 14 EVMs to prevent booth-level voter targeting.

• Electoral Roll Integrity:
  • Consider linking Aadhaar with EPIC after thorough stakeholder discussions.
  • Ensure unique EPIC numbers across states to eliminate duplications.

• Campaign Finance & Conduct:
  • EC should have the power to revoke ‘Star Campaigner’ status for MCC violations.
  • Amend laws to include party funding to candidates within spending limits.
  • Impose ceilings on party expenditure during elections.

• Addressing Criminalization:
  • Enforce SC-mandated publicity of criminal records of candidates three times before elections via newspapers and electronic media.

SC to examine petition on CAG appointment process

Context :

• The Supreme Court has agreed to hear a petition challenging the Centre’s exclusive control over the appointment of the Comptroller and Auditor General (CAG).
• The plea argues that the CAG’s independence is compromised when the Executive alone controls its appointment.
• The petitioner suggests a more transparent and non-partisan selection process.

Relevance : GS 2(Judiciary , Constitutional Bodies)

Key Legal Provisions Involved

• Article 148(1) of the Constitution:
  • States that the CAG is appointed by the President of India.
  • However, it does not prescribe a detailed appointment procedure.
  • CAG’s removal process is similar to that of a Supreme Court judge.

• Current Appointment Process:
  • The Executive (Union government) has sole discretion in appointing the CAG.
  • There is no formal consultation with other stakeholders, unlike in the appointment of Election Commissioners or CBI Directors.

Petitioner’s Arguments

• Threat to Independence:
  • CAG is a watchdog of financial accountability, overseeing Union, State, and Panchayati Raj institutions.
  • A politically influenced appointment process undermines the impartiality of audits.

• Need for a Selection Committee:
  • The petitioner suggests forming a non-partisan selection committee consisting of:
    • The Prime Minister
    • The Leader of the Opposition
    • The Chief Justice of India
  • This would prevent political bias in CAG appointments.

• Recent Concerns with CAG’s Functioning:
  • The petition refers to declining audits of the Union government.
  • Raises concerns about the “pause” in Maharashtra audits and selective reporting of financial irregularities.

Supreme Court’s Observations

• Justice Surya Kant raised a constitutional concern:
  • Would judicial intervention amount to rewriting Article 148?
  • The Constitution does not specify an appointment process, leaving it to the Executive.
• The Bench also noted that institutions should be trusted but agreed to examine the petition.

Broader Implications

• Judicial Precedents on Institutional Independence:
  • The Supreme Court has previously intervened in Election Commission appointments (2023) and CBI Director selection to ensure independence.
  • A similar move in the CAG’s case could set a precedent for reforms in other constitutional appointments.

• Potential for Reforms:
  • If the Court rules in favor of the petitioner, it could lead to:
    • A structured appointment mechanism with transparency.
    • Greater accountability and trust in the auditing process.

• Separation of Powers Concern:
  • Critics may argue that judicial intervention in executive appointments could violate the doctrine of separation of powers.
  • A delicate balance must be struck between judicial oversight and executive prerogative.

Way Forward

• The case could lead to a landmark judgment affecting financial accountability in governance.
• If the Court recommends reforms, Parliament may need to legislate a new appointment process.
• Regardless of the outcome, the debate highlights the urgent need for strengthening the independence of constitutional bodies.

How climate change is affecting India’s wheat production cycle

Wheat Production in India

• Geographical Spread: Primarily grown in Indo-Gangetic plains—Uttar Pradesh, Punjab, Haryana, and Madhya Pradesh.
• Rabi Crop: Sown between October and December; harvested between February and April.
• Procurement Targets:
  • 2025-26: 30 million tonnes.
  • 2024-25: 26.6 million tonnes (below 34.15 million tonne target).

• Export Restrictions:
  • May 2022: Wheat exports banned post-Russia-Ukraine war due to global price hikes and food security concerns.

Relevance : GS 3(Agriculture ,Environment )

Rising Temperatures and Impact on Wheat Growth

• Record Heat:
  • February 2025: Warmest in 124 years.
  • March 2025: Expected above-normal temperatures and heat waves.

• Heat Stress on Wheat:
  • Accelerates flowering and ripening → reduces grain-filling period.
  • Lowers starch accumulation → smaller, lighter grains with lower yield.
  • Increases protein content but reduces milling quality → market price drops.

Scientific Insights into Heat Stress on Wheat

• Physiological Impact:
  • Alters photosynthesis, respiration, water-nutrient absorption.
  • Affects biomass, grain count, and size.

• Critical Growth Stages Susceptible to Heat:
  • Emergence: Seed sprouts and first leaf appears.
  • Growth Stage 1: Shoots develop, plant begins flower formation.
  • Growth Stage 2 (Most Vulnerable): Transition from vegetative to reproductive stage.
  • Growth Stage 3: Grain-filling and maturity phase—high temperatures can severely impact yield.

Role of Indian Ocean Warming & Monsoon Shift

• Warming Trends: Indian Ocean heating at an accelerated rate.
  • By 2100: Expected to remain in a “near-permanent heat wave state.”
  • Heat wave frequency may rise from 20 days/year to 220-250 days/year.

• Monsoon Impact:
  • Kharif season (summer crops) is delayed → pushes Rabi sowing later.
  • Delayed wheat sowing → overlaps with early heat waves, affecting yield.

Secondary Effects of Heat Stress on Wheat Farming

• Overuse of Fertilizers & Chemicals:
  • Farmers compensate for low yield by excessive pesticide and fertilizer use.
  • Leads to inefficient resource utilization and soil degradation.

• Supply Chain and Market Impact:
  • Lower quality wheat faces price cuts.
  • Losses in domestic food security and procurement shortfalls.

Adaptation & Mitigation Strategies

• Short-Term Measures:
  • Compensation: Financial aid for farmers facing heat-stress losses.
  • Crop Insurance & Subsidies: To ensure stability despite climatic risks.

• Long-Term Strategies:
  • Climate-Resilient Wheat Varieties: Research and distribution of heat-resistant crops.
  • Policy Changes:
    • Adjust sowing dates to avoid heat wave overlap.
    • Promote early sowing in regions prone to early temperature rise.
  • Tech-Based Interventions:
    • Weather monitoring systems and advisory services for farmers.
    • Improved agricultural management with precision farming techniques.

• Holistic Approach Needed:
  • Not just wheat but entire food systems require climate adaptation.
  • Balancing food security, yield stability, and resource conservation is key.