Current Affairs 10 February 2025

CONTENT:

1. As M.P. readies new home for cheetahs, locals share woes of being neighbours to the big cats
2. From brain drain to brain gain
3. India’s opportunity at the AI Action Summit
4. China contributes substantially to U.S.’ biggest imports
5. What does the Budget offer Railways?
6. How has the Budget allocated funds for urban development?

As M.P. readies new home for cheetahs, locals share woes of being neighbours to the big cats

Background & Context

• Cheetah Reintroduction: Project Cheetah aims to reintroduce cheetahs to India, after their extinction in 1952.
• Kuno National Park (KNP): First site of reintroduction in 2022, now hosting 26 cheetahs.
• Gandhi Sagar Wildlife Sanctuary (MP): Identified as the second site, with 6–8 cheetahs from South Africa expected before summer 2025.

Relevance : GS 3(Environment and Ecology)

Preparations at Gandhi Sagar

• Quarantine Bomas (QBs):
  • Each enclosure designed with mud mounds, bamboo roofs, water saucers, and electric fencing to mimic natural habitat.
  • Dual-entry gates with remote operation for staff safety.
  • Surveillance with 360-degree cameras and fiber-wrapped trees to prevent escape.

• Health Monitoring:
  • Cheetahs to be quarantined for a minimum of one month before release into a 64 sq km larger enclosure.
  • Health risks from new diseases under constant observation.

 Historical & Geographical Significance

• Savanna-like Habitat:
  • Rocky terrain, shallow soil, and exposed sheet rock create an environment similar to cheetahs’ native African habitat.

• Prehistoric Connection:
  • Rock art at Chaturbhuj Nala (protected by ASI) believed to depict cheetahs, supporting the idea of historical presence.

Local Displacement & Concerns

• Village Relocation:
  • Karanpura village (280 families) relocated since it fell within the 64 sq km sanctuary.
  • Process faced resistance; compensation issues persist.

• Livelihood Impact:
  • Nearby villages (Gurjar, Banjara, Bhil communities) rely on dairy farming, but face water scarcity as fencing blocks Chambal river access.
  • Milk production has halved in some areas due to poor grazing land and water availability.

Key Challenges & Future Implications

• Human-Wildlife Conflict: Displacement of locals vs. long-term conservation goals.
• Ecological Balance: Ensuring sufficient prey population for cheetahs without impacting local biodiversity.
• Sustainable Development: Need for mitigation strategies to address local grievances and improve resource access.

From brain drain to brain gain

Current Scenario

• India has become the largest source of international students in the U.S.
• Record-breaking 3,31,602 Indian students enrolled in 2023-24.
• In 2022, Indian students spent ~$47 billion abroad; projected to reach $70 billion by 2025.
• Highlights both ambition and gaps in India’s higher education system.

Relevance : GS 2(Education)

Challenges in India’s Higher Education

• Financial Model Issues:
  • Over-reliance on tuition fees (80% in private institutions, 90% government-funded).
  • Unsustainable and limits scalability.

• Quality and Capacity Gaps:
  • Need for new world-class universities.
  • Existing institutions require infrastructure and R&D funding.

• Lack of Institutional Autonomy:
  • Limited flexibility in curriculum, funding, and global collaborations.

Multi-Pronged Strategy for Brain Gain

1. Financial Diversification
   1. Reduce tuition dependency to 30-40%.
   1. Increase endowments (30-35% of revenue) via alumni, CSR, and tax incentives.
   1. Research collaborations to contribute 20-25%.
   1. Alternative revenue (IP commercialisation, executive education) to make up 10-15%.

• Enhancing Capacity & Quality
  • Public-Private Partnerships (PPPs) for infrastructure development.
  • Industry-academia collaboration to boost research.
  • Attracting global faculty and forging academic partnerships.

• Autonomy & Accountability
  • NEP 2020 emphasis on institutional independence.
  • Universities need flexibility in curriculum, funding, and governance.
  • Accountability via audits and professional fund management.

The Way Forward

• Shift towards zero-tuition models through research and endowments.
• Position India as a global education hub for both Indian and international students.
• Bold reforms needed to reverse brain drain and create a world-class education ecosystem.

India’s opportunity at the AI Action Summit

Background

• India accepted France’s invitation to co-chair the AI Action Summit on February 10-11, 2025, in Paris.
• The summit will focus on AI safety, innovation, public interest AI, future of work, and AI governance.
• Opportunity to amplify the Global South’s voice on AI issues, following previous summits in the UK and South Korea.
• India has been actively engaged in global AI safety discourse and is setting up an AI Safety Institute.

Relevance : GS 2(International Relations), GS 3(Technology)

India’s Strategic Priorities at the Summit

1. Democratising Access to AI Resources
   1. Advocate for equitable access across the AI value chain (data sets, cloud computing, and application platforms).
   1. India’s domestic AI initiative (computing facility with 18,600 GPUs) sets an example for shared infrastructure.
   1. Support open-source AI models and push for more flexible cross-border transfer of AI technologies.
   1. Promote distributed computing and safety tools like watermarking technology.

• Identifying and Prioritising AI Use-Cases for the Global South
  • Call for a framework to identify AI use-cases tailored to the unique needs of developing countries.
  • Focus on AI applications for local needs: early disease detection, personalized learning platforms, and agricultural productivity tools.
  • Propose establishing an AI use-case repository to guide the Global South in prioritising AI applications.

• Contextualising AI Risks and Safety Measures for the Global South
  • Emphasize the need to address risks that disproportionately affect developing nations.
  • Address cultural erosion due to AI models trained on “western data”.
  • Call for evidence collection on AI-related harms specific to the Global South to inform risk mitigation strategies.
  • Propose the creation of a repository of AI-related harms to guide future regulatory approaches.

Long-Term Vision

• India’s leadership at the summit will position it as a bridge between AI superpowers and the developing world.
• By advancing Global South priorities, India could become an ideal candidate to host the next AI Action Summit.
• India’s efforts will solidify its role in shaping global AI governance with a focus on equity and inclusivity.

China contributes substantially to U.S.’ biggest imports

Background

• President Donald Trump announced additional tariffs on imports from China, Canada, and Mexico, citing a national emergency.
• China retaliated by imposing counter tariffs in response.
• The U.S. imported goods worth $17,000 billion between 2018 and 2023.

Relevance: GS 2(International Relations)

China’s Share in U.S. Imports (2018-2023)

• China’s Contribution:
  • Accounted for 18% of U.S. imported services between 2018 and 2023, the highest among the countries.
  • China contributed the highest share in 8 out of 15 top U.S. imports.
  • Products with the highest Chinese share:
    • Electrical Machinery and Equipment (15% of total U.S. imports)
    • Nuclear Machinery and Appliances (9%)
    • Iron or Steel (20-30%)
    • Plastics (20-30%)
    • Clothing (20-30%)
    • Furniture (~40%)
    • Toys (~80%)

• Other Key Imports from China:
  • China was the second largest contributor to U.S. imports in measuring instruments, organic chemicals, and rubber.

Other Key Contributors

• Mexico:
  • Contributed the highest share in imported vehicles and measuring instruments.
  • Also ranked among the top three exporters for several products, including electrical machinery, nuclear machinery, furniture, iron or steel, and rubber.

• Canada:
  • Contributed nearly 50% of the mineral imports to the U.S.
  • Also contributed significantly to U.S. imports of plastic, vehicles, and iron or steel.

Conclusion

• China remains the largest contributor to the U.S. import basket, particularly in electrical machinery, nuclear machinery, and consumer goods like toys and furniture.
• The U.S. maintains significant import relations with Mexico and Canada, with each country playing a key role in specific sectors.
• The ongoing tariff wars could impact these trade dynamics, especially with China, given its substantial share in critical imports.

What does the Budget offer Railways?

Budget and Financial Overview

• Capital Expenditure (Capex):
  • No significant increase in capex beyond the₹2.62 lakh crore from the past two years.
  • Despite₹13 lakh crore spent on modernisation over the last decade, the returns remain underwhelming.
  • IR’s operational costs are not covered by its own earnings, leading to government’s continued financial support.

Key Announcements and Measures

• Infrastructure and Connectivity:
  • Focus on enhancing infrastructure, station modernisation, train upgrades, and increasing connectivity.
  • Commitment to accelerating the construction of new railway lines, doubling, gauge conversion, and adding new rolling stock.
  • 150 km of new tracks laid annually since 2014, up from 113 km annually in the previous decade.

• Safety:
  • Safety-related initiatives:₹1,16,514 crore allocated.
  • Kavach Safety System: No expansion announced for 2025-26; only 1,465 km of Kavach system deployed so far.
  • Safety work has focused on grade separation, but no significant increase in Kavach coverage.

• Electrification:
  • IR has achieved an electrification rate of 294 Rkms/year (from 18 Rkms/year before 2014).
  • India on track to become the world’s first fully electrified railway network, but concerns raised about underutilisation of diesel locomotives.
  • Most IR electricity still comes from fossil-fuel-based power plants.

• Vande Bharat Trains:
  • 200 new Vande Bharat trains to be introduced, but no clear timeline provided.
  • Pending major projects such as the Western Dedicated Freight Corridor and Mumbai-Ahmedabad High-Speed Rail remain unaddressed.

Concerns and Criticisms

• Station Redevelopment:
  • Station redevelopment projects are stalled or slow, with visible progress only at a few locations like Gandhinagar and Ayodhya.
  • New Delhi Station transformation remains stuck due to repeated re-tendering.
  • EPC mode is now used after the failure of PPP projects, raising concerns about long-term maintenance.

• High-Speed Rail Network:
  • A vision to build a 7,000 km high-speed rail network by 2047 was proclaimed, but lacks a clear strategy or timeline.

• Freight Growth:
  • Declaration to become the world’s second-largest freight carrier (1.6 billion tonnes) lacks context and fails to address the decline in freight share.
  • No clear plan to reclaim eroding freight traffic or to improve train speeds and passenger comfort.

How has the Budget allocated funds for urban development?

Budget Allocation Overview

• Total Allocation: ₹96,777crore for urban development, up from ₹82,576.57 crore last year.
  • However, when adjusted for inflation, the allocation shows a real decline.
  • Revised Estimate (RE) for FY 2024-25 suggests only ₹63,669.93 crore will be spent, reflecting a 22.9% underutilisation.
  • A significant cut in the Pradhan Mantri Awas Yojana (Urban) (PMAY(U)) allocation: from ₹30,170.61 crore to ₹13,670 crore, signaling implementation gaps.

Relevance : GS 3(Infrastructure)

Focus on Capital-Intensive Projects

• The budget emphasizes capital-intensive infrastructure projects rather than employment generation and sustainable urban development.
  • Metro Rail Expansion:
    • Budget for metro and Mass Rapid Transit Systems increased by 46% for 2025-26, from ₹21,335.98 crore to ₹31,239.28 crore.
    • Metro rail prioritisation over other urban mobility solutions raises concerns about inclusivity.

Transfers to Urban Local Bodies (ULBs)

• Direct transfers to ULBs show a decline:
  • Previous year: ₹26,653 crore.
  • This year: ₹26,158 crore.
  • The reduction in transfers follows a revenue loss from the abolition of octroi and the introduction of GST, forcing ULBs to raise funds through additional local taxes.

Centrally Sponsored Schemes (CSS) and Central Sector Schemes

• Centrally Sponsored Schemes (CSS):
  • Programs like PMAY, Swachh Bharat Mission (SBM), AMRUT, and Smart Cities Mission face funding cuts.
  • PMAY (CSS component) saw a 30% reduction in funding.
  • Swachh Bharat Mission (Urban) funding remained steady, but spending fell short by 56%, with only ₹2,159 crore spent out of the allocated ₹5,000 crore.

• Central Sector Schemes:
  • These are controlled by the Union Government and prioritize infrastructure, especially metro projects.

Urban Challenge Fund and Redevelopment Programs

• New Urban Challenge Fund: ₹10,000 crore introduced for urban redevelopment.
  • Ambitious target of ₹1 lakh crore set for redevelopment programs, with 50% of funding expected from private investments.
  • However, private sector participation in Smart Cities Mission has been negligible, casting doubt on the feasibility of this goal.

Concerns and Implications

• The focus on capital-intensive projects like metro expansion neglects more holistic urban development strategies such as employment generation, sustainable economic policies, and green jobs.
• Social and economic equity may be undermined, exacerbating disparities in urban development.
• The allocation for urban local bodies and key social programs remains insufficient, raising concerns about long-term urban growth and inclusivity.