Current Affairs 12 April 2025

Context :

1. Industrial output growth slows to 2.9% in Feb.
2. DRDO does release trials of long-range glide bomb
3. Indian EVMs not connected to Internet or Wi-Fi, says EC after U.S. official’s comments
4. India ‘eyeing win-win interim deal’ with U.S. during the 90-day pause
5. 1.6 billion people in low- & middle-income countries lack social protection

Industrial output growth slows to 2.9% in Feb.

What is IIP? – The Basics

• Index of Industrial Production (IIP) is a composite indicator that measures the volume of production in India’s industrial sector.
• It is released by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
• The IIP is base-weighted (currently 2011-12 = 100) and consists of three core sectors:
  • Manufacturing (77.63% weight)
  • Mining (14.37%)
  • Electricity (7.99%)

Relevance : GS 3(Economy )

What Happened in February 2025?

• IIP growth slowed to 2.9%, the lowest in the past six months.
• Well below the 4% growth projected by Reuters.

Sectoral Breakdown

•  
• All three sectors decelerated, pointing to broad-based industrial slowdown.

Use-Based Classification – What’s Driving or Dragging Output?

• Capital Goods (machinery, infrastructure equipment):
  • Grew by 8.2% (vs. 1.7% last year) – positive signal for future investments.

• Consumer Durables & Non-Durables, Intermediate Goods:
  • Slower growth than previous year – indicates sluggish demand and possibly weak rural consumption.

Reasons Behind the Slowdown

• High Base Effect: Feb 2024 had robust industrial growth, making YoY comparisons weaker.
• Global Uncertainty: Geopolitical tensions, weak global demand, and trade disruptions.
• Domestic Constraints: Rising input costs, credit tightening, and lag in private consumption recovery.
• Manufacturing Weakness: Still recovering from structural disruptions (COVID, global inflation, supply chains).
• Slower Mining Activity: May reflect seasonal slowdown, regulatory bottlenecks, or weaker commodity prices.

Wider Economic Implications

• Economic Growth: Industrial output is a major contributor to GDP; slowdown may drag Q4 FY25 GDP figures.
• Policy Signals: RBI may be cautious on interest rate cuts, despite industrial weakness, due to inflation risks.
• Employment Concerns: Manufacturing slowdown may impact job creation, especially in labor-intensive industries.
• Capex Outlook: Rise in capital goods output is a silver lining, hinting at private sector capex revival.

Conclusion – Why It Matters

• Sustained industrial growth is vital for a $5 trillion economy goal.
• The slowdown reflects underlying fragilities in the real economy, despite headline GDP resilience.
• Calls for:
  • Policy thrust on MSMEs, ease of doing business, PLI schemes.
  • Sector-specific interventions to boost mining and electricity.
  • Revival of rural demand to fuel manufacturing, especially consumer non-durables.

DRDO does release trials of long-range glide bomb

Basic Facts

• Organisation: Defence Research and Development Organisation (DRDO)
• Weapon System: ‘Gaurav’ – Long-range glide bomb
• Trial Dates: April 8–10, 2025
• Platform Used: Su-30 MKI fighter jet
• Bomb Weight: 1,000 kg
• Range Demonstrated: Close to 100 km
• Target Type: Land-based target on an island
• Outcome: Achieved pin-point accuracy in multiple configurations

Relevance : GS 3(Internal Security)

What is a Glide Bomb?

• A glide bomb is an aerial bomb with wings and guidance system that enables it to glide toward a target after release.
• Unlike traditional bombs, it does not require propulsion — it relies on high-altitude release and aerodynamic surfaces.
• Offers standoff capability, allowing aircraft to strike without entering enemy air defense zones.

Key Technical Highlights

• Multiple warhead configurations tested — suggesting adaptability for different mission types (penetrative, fragmentation, etc.).
• Integrated to multiple stations on the Su-30 MKI — shows high modularity and compatibility.
• The weapon demonstrated precision strike capabilities, critical for minimizing collateral damage.

Strategic Significance

• Enhances India’s air-to-ground standoff strike capability, vital in contested airspaces like:
  • Line of Control (LoC)
  • Line of Actual Control (LAC)
• Reduces risk to pilots and aircraft by allowing long-range attacks without breaching hostile airspace.
• Adds indigenous depth to India’s precision strike inventory, reducing dependency on foreign munitions.

Comparative Advantage

• Complements existing guided munitions like:
  • SPICE bombs (Israeli)
  • Hammer bombs (French)
  • BrahMos-A (air-launched)

• Compared to traditional gravity bombs:
  • Higher survivability for aircraft
  • Greater mission flexibility

R&D and Indigenous Defence Boost

• Strengthens DRDO’s role in developing next-gen precision strike systems under Atmanirbhar Bharat.
• Encourages public-private partnerships for future glide bomb series (lighter or heavier versions).
• Likely to be part of DRDO’s Smart Bomb family (including Gaurav, Garuthmaa, etc.).

Implications for Indian Air Force (IAF)

• Enhances IAF’s deep strike and surgical strike potential.
• Offers a cost-effective indigenous alternative to imported PGMs (Precision Guided Munitions).
• Likely to be deployed in forward airbases near sensitive borders for rapid deployment.

Indian EVMs not connected to Internet or Wi-Fi, says EC after U.S. official’s comments

Context & Trigger

• Tulsi Gabbard, U.S. Director of National Intelligence, recently warned about vulnerabilities in electronic voting systems in the U.S., suggesting a return to paper ballots.
• Elon Musk had previously raised concerns about EVMs being hackable, even by AI.
• The Election Commission of India (EC) responded, emphasizing the security and integrity of Indian EVMs.

Relevance : GS 2(Governance , Elections)

Technical Aspects of Indian EVMs

• Indian EVMs are not connected to the Internet, Wi-Fi, or Infrared.
• They are stand-alone, one-way programmable devices – functioning like simple calculators.
• No external communication hardware/software is embedded.

Tamper-Proof & Secure Design

• Once programmed, the EVMs are sealed, and no further input or manipulation is possible.
• Stored in strong rooms under multi-layer security, with access monitored and logged.
• VVPAT (Voter Verifiable Paper Audit Trail) allows the voter to visually verify their vote.
• No internal clock or memory – prevents manipulation based on time or stored data.

Transparency & Verification Measures

• VVPAT slips are generated with every vote and available for verification.
• Over 5 crore VVPAT slips have been matched and verified during live counting in front of party representatives.
• Political parties are involved at every stage – mock polls, randomization, sealing, and counting.

Legal and Judicial Backing

• Indian EVMs have passed the test of legality – upheld by the Supreme Court of India.
• Regular public interest litigations (PILs) and challenges have been addressed by the judiciary.

International Comparisons

• U.S. systems use a variety of e-voting systems, often linked to private networks or the Internet, making them susceptible to hacking.
• Indian EVMs are indigenous, self-contained, and have no external network dependency.

Why EVMs are Still Criticized Internationally

• Lack of understanding of India’s specific design vs. global models.
• Political and civil society concerns in various democracies about digital manipulation.
• General skepticism toward technology in elections due to rising cyber threats globally.

India’s Approach to Trust in Elections

• Emphasizes speed (counting 100 crore votes in a day), accuracy, and transparency.
• EC maintains continuous public confidence through voter education and process openness.
• India has resisted international pressure to move toward online or hybrid systems, citing cybersecurity risks.

India ‘eyeing win-win interim deal’ with U.S. during the 90-day pause

Context & Background

• President Donald Trump announced a 90-day pause on reciprocal tariff increases (like the proposed 26% on Indian goods).
• However, a baseline tariff of 10% remains applicable during this window.
• This pause opens a diplomatic window for India-U.S. trade negotiations.

Relevance : GS 2(International Relations)

India’s Strategic Objective

• India is aiming to capitalize on the 90–day window to conclude an interim trade deal on mutually beneficial (“win-win”) terms.
• The broader Bilateral Trade Agreement (BTA) is expected by fall of 2025.

Trade Stakes & Imbalance

• In 2024, India exported $77.51 billion to the U.S., while importing $42.19 billion.
• This resulted in a trade surplus of over $35 billion in India’s favor — a key concern for the U.S.

Negotiation Dynamics

• Talks are being held through video conferences and planned visits.
• Everything is on the table — includes tariffs and non-tariff issues such as:
  • Intellectual property rights (IPR)
  • Government procurement
  • Digital trade & e-commerce
  • Data localisation norms

India’s Core Priorities

• Protect domestic interests while offering calibrated concessions.
• Ensure any concessions do not harm small industries or digital/data sovereignty.
• Minister Piyush Goyal emphasized India’s negotiating stance: “We never negotiate at gunpoint.”

Broader Implications

• A successful interim deal can:
  • Set the tone for the larger BTA.
  • Improve strategic bilateral ties ahead of the U.S. elections.
  • Strengthen India’s global image as a reliable trade partner.

Challenges in the Path

• U.S. may pressure India on:
  • Relaxing import duties on specific goods (e.g., medical devices, agriculture).
  • Easing rules on e-commerce and cross-border data flows.
• India is wary of opening sensitive sectors without long-term safeguards.

Strategic Calculations

• The 90-day window is short — prioritization of low-hanging fruits is likely.
• Interim agreement may exclude contentious areas and focus on tariff rationalization.

Policy & Diplomatic Takeaways

• The approach mirrors India’s pragmatic multilateralism — focusing on outcomes over ideology.
• Reflects India’s trade recalibration strategy amid China+1 shifts and reshoring trends.
• Interim deals offer incremental progress while reducing friction in long-term strategic ties.

1.6 billion people in low- & middle-income countries lack social protection

Nearly 2 billion people in low- and middle-income countries lack adequate social protection, leaving them vulnerable to poverty, shocks, and crises. The World Bank’s State of Social Protection Report 2025 highlights the urgent need for inclusive, climate-resilient, and shock-responsive systems.

Relevance : GS 3(Climate Change , Environment and Ecology)

Magnitude of the Crisis

• 2 billion people in LICs and MICs lack adequate social protection.
  • Of these, 1.6 billion receiveno support at all.
• The crisis disproportionately affects LICs and Sub-Saharan Africa, where:
  • 80% of people in LICs lack any form of social protection.
  • 70% of Sub-Saharan Africans have no access to protection systems.

Extreme Poverty & Social Protection

• 88% of people in extremepoverty globally have no or inadequate social protection.
  • 98% in LICs and 97% in Sub-Saharan Africa are uncovered.
• This undermines the poverty reduction and equality goals globally.

Progress is Slow and Uneven

• Between 2010 and 2022, LMICs made modest gains:
  • Coverage rose from 41% to 51%.
  • Driven mostly by cash transfers, school meals, food aid.
• LICs showed the fastest relative gain, but from a low base:
  • Social protection among poorest increased by 17 percentage points.

Future Projections (if current pace continues)

• 2043: Full coverage for extreme poor.
• 2045: Full coverage for the poorest 20% of households.
• 2030 SDG target to achieve “substantial coverage” will likely be missed.

Structural Challenges in LICs

• Social insurance (pensions, health, unemployment) nearly absent:
  • Covers only 2% in LICs and 8% in LMICs.
• Social assistance is minimal:
  • LICs spend just 0.8% of GDP on it.

Geographic and Demographic Focus

• Middle-Income Countries (MICs) host more uncovered people in absolute terms:
  • 1.2 billion in MICs vs 500 million in LICs.
• Fragile and conflict-affected countries, especially in Africa and Asia, will host 60% of extreme poor by 2030.

Climate and Conflict Risks

• Climate change could push 130 million into extreme poverty by 2030.
• Most existing systems are not climate-resilient or shock-responsive.
• Vulnerable regions need emergency relief + long-term solutions.

 Finance Gap and Inequities

• Global average spending on social protection: 5.3% of GDP.
  • High-income countries spend 85.8x more per capita than LICs.
• Spending is skewed toward social insurance (benefitting formal workers), not social assistance.

 Solutions & Recommendations

• Tailored national strategies based on fiscal and institutional capacity.
• Shift focus to non-contributory assistance for the poor.
• Boost domestic finance via:
  • Reallocating $7 trillion+ in regressive subsidies (fossil fuels, agriculture).
  • Investing in digital registries, payments, and case management systems.
• Build shock-responsive, climate-adaptive, and digitally integrated social protection ecosystems.