Current Affairs 29 January 2025

Content:

1. China’s DeepSeek jolts tech world with a lean, mean AI model
2. Avadi Ordnance clothing unit sends its first defence export to Suriname
3. Choice of secular inheritance law should apply to all faiths, says CJI
4. Women’s groups seek Budget that will boost inclusive workforce
5. ISRO set for a historic 100th launch from Sriharikota
6. OpenAI, maker of ChatGPT, questions jurisdiction of Indian courts in copyright case
7. The impact of classifying denotified tribes
8. Union Budget: understanding its formulation and implications

China’s DeepSeek jolts tech world with a lean, mean AI model

DeepSeek, a Chinese start-up founded in 2023 by Liang Wenfeng, has caused a stir in the global AI industry with its new models, particularly DeepSeek-R1 and DeepSeek-v3.

The company claims that its AI technology rivals those of leading U.S. tech giants, including OpenAI and Nvidia, but at a fraction of the cost. DeepSeek’s emergence challenges the narrative that Chinese AI models are inferior to American counterparts, highlighting the shifting dynamics of the international AI market.

Relevance : GS 2(International Relations ), Facts for Prelims.

Key Developments

Cost Efficiency and Competitive Edge:

• DeepSeek-v3: The AI model’s training costs were reported to be under $6 million, a stark contrast to the billions spent by American firms like OpenAI for similar technologies. This cost efficiency has drawn attention to DeepSeek’s ability to operate on a significantly smaller budget.

• DeepSeek-R1: This new model is reportedly 50 times cheaper to operate than OpenAI’s GPT-4 for specific tasks, further solidifying its value proposition for cost-conscious enterprises.

AI App Success:

• DeepSeek’s AI Assistant: The flagship product, powered by the DeepSeek-v3 model, has surpassed OpenAI’s ChatGPT as the highest-rated free app on the Apple App Store, marking a significant milestone in the competition between U.S. and Chinese AI firms.

Market Impact:

• Stock Market Reaction: DeepSeek’s disruptive cost advantage led to a significant market correction, with AI chipmaker Nvidia’s market value plunging by half a trillion dollars. This is the largest single-session loss in history, demonstrating the market’s sensitivity to AI advancements and shifting global dynamics.

• The broader impact extended to global tech stocks, which saw significant declines, highlighting the weight of DeepSeek’s potential as a new force in the AI industry.

Strategic Shifts in the Global AI Race

U.S.-China AI Competition:

• U.S. Perspective: U.S. President Donald Trump characterized DeepSeek’s rise as a “wake-up call,” urging American industries to become more competitive. The underlying message is clear: the U.S. must maintain its technological leadership in AI to avoid being outpaced by cheaper, more efficient Chinese alternatives.

• China’s Strategic Gains: DeepSeek’s models challenge the traditional notion that China’s AI capabilities are lagging behind Silicon Valley. Unlike earlier Chinese attempts, such as Baidu’s Ernie bot, DeepSeek’s products have made significant strides in terms of quality and affordability.

China’s AI Ecosystem:

• Government and Regulatory Oversight: China’s stringent data control laws and regulatory environment are pivotal in shaping the operations of companies like DeepSeek. This has led to questions around cybersecurity and the potential risks associated with engaging with Chinese AI companies, which operate in a more controlled environment than their Western counterparts.

• Access to Technology: DeepSeek’s success is partly due to its access to high-end AI chips, particularly Nvidia’s H800 chips. However, some analysts have raised concerns about whether DeepSeek’s access to these chips, which are restricted for sale to Chinese firms under U.S. export controls, is legitimate. Speculation exists that DeepSeek may have up to 50,000 Nvidia H100 chips, fueling debates around the tech industry’s regulatory frameworks and the potential for sanctions enforcement.

Potential Risks and Skepticism

Financial Transparency and Costs:

• While DeepSeek’s claimed training costs appear remarkably low, some analysts have questioned the true expenses behind its AI models, particularly regarding the $5.58 million cited for the v3 model. Without full transparency on funding sources and development processes, there are concerns about the sustainability of DeepSeek’s cost model.

Cybersecurity Concerns:

• As with other Chinese tech companies, there are concerns regarding the security and privacy implications of using DeepSeek’s technology. The Chinese government’s influence over domestic companies, particularly in areas like data handling and cybersecurity, raises red flags for international users.

Geopolitical Tensions:

• The growing competition between China and the U.S. in AI mirrors broader geopolitical tensions, which could impact future collaboration or market entry in countries wary of Chinese tech. This is particularly relevant as AI becomes a critical component in national security and economic competitiveness.

Avadi Ordnance clothing unit sends its first defence export to Suriname

• Context: OCF, Avadi, executed India’s first defence export order to Suriname, signaling India’s growing presence in global defence markets.

Relevance : GS 3(Exports, Internal Security,Defence)

• Product Details: The shipment includes 4,500 military uniforms worth ₹1.71 crore, aimed at strengthening diplomatic ties between India and Suriname.
• Diplomatic Significance: This export is part of India’s strategy to enhance diplomatic and economic relations with Suriname and other nations.

• Shipping Timeline: The uniforms are expected to reach Suriname in 60-70 days, with OCF anticipating future orders worth ₹5 crore.

• Quality Assurance: The uniforms are made-in-India, tested-in-India, highlighting their high-quality standards, which enhances India’s global defence reputation.

• Broader Goals: This export aligns with India’s target to achieve ₹50,000 crore in defence exports by 2029, with OCF Avadi playing a significant role.

• Manufacturing Expertise: OCF Avadi produces a variety of defence products like bullet-resistant jackets, helmets, and bomb suppression blankets, receiving positive feedback from Indian states and agencies.

• Expansion Opportunities: Suriname’s order could pave the way for larger contracts, expanding India’s market share in global defence exports.

• Global Market Challenges: India faces competition from established suppliers, but the quality and affordability of its products offer an edge in emerging markets.

• Strategic Outlook: This export order strengthens India’s role as a global defence exporter, opening doors for future deals and further strengthening international ties.

Choice of secular inheritance law should apply to all faiths, says CJI

• Chief Justice’s Observation: CJI Sanjiv Khanna stated that the freedom to renounce faith and choose secular inheritance laws should apply to all religions, not just one.

Relevance : GS 2(Constitution , Polity )

• Petitioner’s Case: The petition was filed by Safiya P.M., a woman from Kerala, who, born a Muslim, now identifies as a non-believer and seeks to be governed by the secular Indian Succession Act rather than Sharia law.

• Equality Across Faiths: CJI emphasized that secular inheritance laws should be applicable universally, irrespective of faith, noting that if one religion is governed by secular laws, all religions must follow the same principle.

• Hindu Succession Act Issue: CJI pointed out that under the Hindu Succession Act, converting from Hinduism results in losing inheritance rights, which Safiya argued should not apply to someone who renounces their faith.

• Will as a Solution: Solicitor-General Tushar Mehta argued that inheritance through a Will is still possible, despite restrictions in the Hindu Succession Act.

• Intestate Succession Consideration: The CJI highlighted issues with intestate successions (without a Will) and the complexities of joint Hindu family property, which may complicate the inheritance process.

• Union’s Response: The Union Government was asked to file a counter-affidavit in response to the petition, as the issue raised was significant and required careful consideration.

• Religion in Official Forms: CJI suggested that if the petition succeeds, there should be an option to not mention religion on official forms, offering an individual’s right to waive or omit religion as a private matter.

• Advocate’s Argument: Advocate Prashant Padmanabhan argued that Safiya, as a non-believer, should not face any disqualification in inheritance rights or other civil rights due to her religious choice, invoking secularism under the Constitution.

• Inheritance Under Muslim Law: Safiya argued that under Muslim law, she would inherit only one-third of her father’s property, while also caring for her autistic brother. This limitation, combined with her renunciation of faith, further complicates her inheritance.

• Legal Vacuum: Safiya’s petition highlighted a legal vacuum, where even if she obtained a “no-religion, no-caste” certificate, she still faced barriers to inheriting her parental property, violating her fundamental right to belief under Article 25 of the Indian Constitution.

Women’s groups seek Budget that will boost inclusive workforce

Focus on Female Workforce Participation:

• Women’s groups stress the need for policies to increase female workforce participation.
• Key strategies include employment-linked incentives, flexible work hours, and supportive infrastructure (e.g., work site crèches).

Relevance : GS 2(Social Justice) ,GS 3(Economic Development)

Praise for Increased Gender Budget:

• Previous budget’s increase in the gender budget (₹3 lakh crore for FY25) was appreciated.
• Special schemes like the Pradhan Mantri Awas Yojana and Namo Drone Didi aimed at women’s financial empowerment were recognized.

Addressing Unique Needs of Women:

• Organizations emphasize the importance of addressing the unique needs of women and girls, especially in skilling and livelihoods.
• A strong focus on investments in the care economy is highlighted.

Call for Better Support Infrastructure:

• Proposals include developing workplace crèches, improving public transport, and ensuring equal pay initiatives to help women thrive in the workforce.

Female Labour Force Participation Rate:

• As of 2023, India’s female labour force participation rate stands at 32.7% (percentage of women aged 15+ who are economically active).

Quality of Jobs for Women:

• Experts urge the 2025-26 budget to focus on job quality, ensuring women have access to decent, dignified employment.
• There’s a call for investments in the care economy to boost job opportunities for women.

Optimism for Policy Changes:

• Neera Nundy (Dasra India) expresses hope for favorable policies and enhanced tax incentives to unlock more capital for women-led initiatives from families, individuals, and corporates.

ISRO set for a historic 100th launch from Sriharikota

Historic Milestone:

• ISRO will oversee its 100th launch from the Satish Dhawan Space Centre (SDSC), Sriharikota, with the GSLV-F15 mission.

• This launch will place the NVS-02 navigation satellite into a geosynchronous transfer orbit.

Relevance : GS 3(Space)

First Launch & Early Struggles:

• The first ISRO launch took place on August 10, 1979, with SLV-3 E10 carrying the Rohini Technology Payload, which was only partially successful.
• The mission was directed by A.P.J. Abdul Kalam (then Director at ISRO), and recovery from the setback led to the success of SLV-3E2 in 1980, placing the Rohini satellite (RS-1) in orbit.

Mission Evolution:

• ISRO has successfully launched a variety of missions since, including:
  • 2 SLV missions
  • 4 Augmented Satellite Launch Vehicle (ASLV) missions
  • 62 PSLV missions (workhorse of ISRO)
  • 16 GSLV missions
  • 7 LMV3 missions
  • 3 SSLV missions
  • 1 Reusable Launch Vehicle mission
  • 1 Test Vehicle Abort Mission
  • 1 Pad Abort Test (PAT) as part of the Gaganyaan program.

Strategic Location of Sriharikota:

• The SDSC was chosen for its ideal features:
  • Launch azimuth corridor for diverse missions.
  • Proximity to the equator, aiding eastward launches.
  • Large uninhabited safety zones.

Landmark Missions:

• Chandrayaan-1 (2008): India’s first lunar mission.
• Chandrayaan-2 (2019): India’s second lunar mission, with the GSLV-Mk III – M1.
• Chandrayaan-3 (2023): India’s successful mission to land on the moon’s polar region.
• Mars Orbiter Mission (2013): India’s first interplanetary mission.
• Aditya-L1 (2023): India’s first mission to study the Sun.

Record-Breaking Launch:

• The PSLV-C37 (2017) mission set a record by launching 104 satellites in a single flight, a feat later surpassed by SpaceX Falcon 9 in 2021 (launching 143 satellites).

Setbacks and Failures:

• ISRO has faced failures in several launches, including:
  • GSLV-F02/INSAT-4C (2006)
  • GSLV-D3/GSAT-4 (2010)
  • GSLV-F06/GSAT-5P (2010)
  • GSLV-F10/EOS-03 (2021).

OpenAI, maker of ChatGPT, questions jurisdiction of Indian courts in copyright case

Court Hearing on Copyright Case:

• The Delhi High Court is hearing a copyright infringement case filed by Asian News International (ANI) against OpenAI for allegedly using publicly available content to train ChatGPT.

Relevance : GS 2(Judiciary), GS 3(Technology)

OpenAI’s Jurisdiction Argument:

• OpenAI argues that it cannot besuedinIndiancourts for copyright infringement.
  • The company’s terms of use stipulate that disputes must be resolved either through arbitration or legal action in California courts, governed by California law.

Industry Bodies Intervene:

• Federation of Indian Publishers (FIP) and the Digital News Publishers Association (DNPA) have intervened in the case, joining ANI’s allegations.

Court’s Approach:

• Justice Amit Bansal indicated that the court will address the jurisdiction question alongside other aspects of the case, allowing the hearings to proceed.
  • The court has issued a notice to OpenAI regarding the interventions by DNPA and FIP, with a response due in two weeks to determine if their involvement in the case will be admitted.

Legal Assistance for the Court:

• The court has appointed two friends-of-the-court:
  • Arul George Scaria (Professor at National Law School of India University (NLSIU)).
  • Adarsh Ramanujan (Advocate in Delhi and Chennai).
  • These experts will assist the court in outlining the legal issues in the case.

Broader Implications:

• Dr. Scaria stated that the litigation could have significant implications for the future of AI research, development, and deployment in India, with long-term consequences for the industry.

Accusations Against OpenAI:

• ANI, along with FIP and DNPA, accuses OpenAI of unlawfully using their publicly available content to train its AI models, which they argue constitutes copyright infringement.

The impact of classifying denotified tribes

Context :Official Recognition

• Members of the Adi tribe in Siang, Arunachal Pradesh, were officially recognized on January 28.
• The classification ensures that their socio-economic challenges are acknowledged.

Relevance :GS 1(Society ), GS 2(Governance)

Social Empowerment:

• Denotified tribes often face marginalization, and the recognition can empower them socially.
• Recognition allows access to affirmative action, including reservations in education and employment.

Economic Benefits:

• The classification may open up avenues for financial support under various welfare schemes designed for marginalized tribes.
• Improved access to government resources and infrastructure development.

Cultural Preservation:

• Official recognition can aid in preserving the cultural heritage and traditions of the Adi tribe, safeguarding their identity.
• It may foster increased participation in governance, ensuring their voices are heard in policy formulation.

Legal Protection:

• Denotified tribes often struggle with legal rights and access to justice. Recognition provides a legal framework for the protection of their rights.
• It helps prevent the exploitation and discrimination that some members face.

Challenges in Implementation:

• Though recognition is crucial, there might be delays or lack of effective implementation in ensuring benefits reach the intended community.
• There could be resistance from local power structures or stakeholders who may feel threatened by the inclusion of these groups.

Historical Context:

• Denotified tribes were once labeled as “criminal tribes” under colonial rule, which stigmatized them. Recognition attempts to undo this historical injustice.
• This move also contributes to the broader discourse on tribal welfare and rights in India.

Union Budget: understanding its formulation and implications

Relevance : GS 3(Economy )

Components of the Budget:

• Expenditure: Divided into capital expenditure (creating long-term assets) and revenue expenditure (ongoing costs like wages, subsidies).
  • Capital expenditure includes infrastructure projects (e.g., new schools or hospitals).
  • Revenue expenditure involves costs that do not create assets, like interest payments or subsidies.

• Receipts: Categorized into revenue receipts, non-debt capital receipts, and debt-creating capital receipts.
  • Revenue receipts include tax and non-tax revenue that do not increase liabilities.
  • Non-debt capital receipts (e.g., loan recovery, disinvestment) do not create future liabilities.
  • Debt-creating receipts involve loans and borrowings, increasing liabilities.

• Deficit Indicators:
  • Fiscal Deficit: Difference between total expenditure and the sum of revenue receipts + non-debt receipts.
  • Primary Deficit: Fiscal deficit minus interest payments.
  • Revenue Deficit: Difference between fiscal deficit and capital expenditure.

Implications of the Budget on the Economy:

• Aggregate Demand: Government expenditure boosts aggregate demand, while taxes and non-tax revenue reduce private sector income, thus lowering private demand.

• Economic Trends: Expenditure and revenue typically rise with GDP, and are analyzed in relation to GDP or growth rates (after inflation adjustment).

• Fiscal Deficit Analysis: A reduction in fiscal deficit-GDP ratio signals a government policy to reduce aggregate demand.

• Income Distribution: Budget decisions, such as spending on welfare (e.g., food subsidies, employment schemes) or corporate tax cuts, can have varying impacts on income distribution. Welfare measures may benefit poorer sections, while tax cuts may favor corporations.

Fiscal Rules and Policy Impact:

• Fiscal Rules: India’s fiscal policy is guided by the N.K. Singh Committee Report, which sets targets for the debt-GDP ratio, fiscal deficit-GDP ratio, and revenue deficit-GDP ratio.

• Adjusting Expenditure: To meet these fiscal targets, expenditure may be adjusted, even if it contradicts the need for economic expansion (e.g., during recessions or high unemployment).

• Limitations of Current Rules: The existing fiscal framework may limit the government’s ability to address issues like unemployment or low output growth by capping expenditure.

• Re-examining Fiscal Policy: In light of contemporary economic challenges, there may be a need to re-evaluate India’s fiscal rules to allow more flexibility in responding to economic needs.