Daily News Summary
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- Economics (Indian Economy)
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Incidents on loop, but it’s escape for regulator, airlines
- The Hindu |
- Economics (Indian Economy) |
- 2024-12-30
- Airports Authority of India (AAI)
- Airports
- Ude Desh ka Aam Nagrik (UDAN)
The article highlights a recurring issue in Indian aviation involving runway confusion and safety lapses, exemplified by an Air India incident at Goa’s Mopa airport, stressing the need for improved safety standards and accountability to prevent future accidents.
Runway Confusion and Aviation Safety Concerns in India
Recent Incident and Historical Context
The Air India incident at Goa’s Mopa airport on December 5, 2024, highlights persistent issues of runway confusion in Indian aviation. The Hyderabad-bound aircraft mistakenly entered a parallel taxiway instead of the main runway, a recurring issue in India’s aviation history.
- Directorate General of Civil Aviation (DGCA): Often attributes these incidents to pilot error but fails to implement corrective measures.
- International Civil Aviation Organization (ICAO): Requires member states to investigate and prevent aviation incidents, a mandate inadequately met by India.
Notable Historical Incidents
- 1993: Jet Airways landed at Sulur air base instead of Peelamedu airport.
- 2002: Jet Airways landed on the taxi track in Goa's Dabolim airport.
- 2018: Air India aircraft landed on an under-construction runway in the Maldives.
- 2020: Spicejet had a hard touchdown short of the runway in Guwahati.
Despite the potential for serious consequences, none of these incidents resulted in fatalities.
Systemic Failures and Comparisons
The failure to prevent recurrences of runway confusion is attributed to the Ministry of Civil Aviation, DGCA, and airlines.
- Singapore Airlines' response to a 2000 crash exemplifies successful corrective action, contrasting with India's inadequate measures.
Runway Overrun Accidents
Since 2005, multiple incidents of high and fast approach have resulted in runway overruns.
- 2005: Air Sahara experienced serious damage after overrunning the runway in Mumbai.
- 2019: Spicejet aircraft overran the runway in Mumbai.
- 179 lives lost in Mangaluru and Kozhikode crashes due to overruns.
Blame often falls on pilots rather than training deficiencies or regulatory failures.
Training and Safety Standards
India has inadequate training and safety standards, compounded by regulatory oversights.
- Pilots often face pressure to violate flight time limits and prioritize "on time performance" (OTP).
- In accidents like Kozhikode, "press-on-it-is" mentality resulted in ignoring co-pilot inputs.
Judicial and Regulatory Challenges
Recent deferment of flight and duty time limits due to airline pressure poses a significant safety risk.
- A High Court decision asking DGCA to negotiate highlights judicial misunderstandings of aviation safety issues.
Security agencies maintain upper hand over militants in Kashmir, face challenge in Jammu region this year
- The Hindu |
- Security |
- 2024-12-29
- Jammu and Kashmir
- Indian Army
- Insurgency in J&K
- NSG
The article discusses the escalating militancy in Jammu and Kashmir, highlighting increased casualties among security forces in Jammu compared to Kashmir. Militants have adopted new tactics and established bases in various districts, leading to heightened operations by security forces.
Security Situation in Jammu and Kashmir
Overall Analysis
The security dynamics in Jammu and Kashmir have seen a notable difference in militant activities and security force responses between the Jammu region and Kashmir Valley. Jammu region experienced more intense militant activities across all its 10 districts compared to the Kashmir Valley.
Casualties and Operations
- Jammu Region:
- 18 security personnel were killed compared to 13 militants in approximately 30 engagements.
- Militants have been setting up bases in areas like the Pir Panjal valley since 2020.
- Expanded operations into forest ridges of Kathua, Reasi, Doda, and Kishtwar using non-motorable passes.
- Kashmir Valley:
- 55 militants were killed, with 10 security personnel casualties.
Changes in Militant Tactics
Militants have adapted their tactics, utilizing forest cover and difficult terrain for survival, and enhancing their training levels.
Civilian Casualties
- 16 civilians were killed in Kashmir and 14 in Jammu.
- Notably, nine pilgrims were killed in Reasi on June 9.
Significant Militant Attacks
- Post External Affairs Minister's Pakistan visit, attacks increased in Srinagar.
- Major attack on a tunnel project in Ganderbal on October 20, resulting in seven deaths.
- Lashkar-e-Taiba's Junaid Ahmad Bhat, responsible for Ganderbal attack, was killed in December.
Government Response and Actions
- A special unit of the National Security Guard (NSG) stationed in Jammu for the first time.
- 14 houses of militants attached, and 168 locals arrested under the Unlawful Activities (Prevention) Act (UAPA).
- Jammu region sees the first booking of two women under the Public Safety Act (PSA) for militant support.
- Properties of 11 absconding terrorists attached, with 29 identified for future action under UAPA.
All eyes on PSLV-C60 mission as ISRO looks to end 2024 on a high Premium
- The Hindu |
- Science and Technology |
- 2024-12-30
- ISRO
- Space Docking Experiment
- PSLV-C59
- PSLV-C60
The article highlights ISRO's ambitious space missions set for late 2024, including the PSLV-C60's launch aimed at testing technologies for future interplanetary and human spaceflight. Key projects involve satellite docking experiments and various scientific payloads.
ISRO's 2024 Space Missions Overview
PSLV-C59 Mission
The PSLV-C59 mission launched the European Space Agency’s Proba-3 spacecraft into a highly elliptical orbit. The mission demonstrated the ability of ISRO's PSLV to launch a spacecraft into complex orbits. The launch took place from Satish Dhawan Space Center on December 5, 2024.
Gaganyaan Mission Preparations
ISRO has begun assembling the human-rated LVM-3 (HLVM-3) for its first uncrewed mission, marking a significant milestone for the Gaganyaan mission, India's human spaceflight initiative. This follows earlier successful tests of reentry characteristics using the Crew-module Atmospheric Re-entry Experiment (CARE).
PSLV-C60 Mission
- The PSLV-C60 mission is set to launch on December 30, 2024, carrying satellites SDX01 (Chaser) and SDX02 (Target).
- These satellites will demonstrate in-orbit docking, leading to ISRO's Space Docking Experiment (SpaDeX).
- The mission will also carry 20-plus payloads from various ISRO centers, academia, and Indian private companies.
PSLV Orbital Experimental Module (POEM-4)
POEM-4 will carry 24 payloads, including the 'Walking Robotic Arm' and the Debris Capture Robotic Manipulator, to demonstrate advanced technologies in space.
Biological and Communication Experiments
- The Amity Plant Experimental Module in Space (APEMS) will study plant growth in microgravity.
- RVSat-1 will measure the growth of the gut bacterium Bacteroides thetaiotaomicron in space.
- Communication payloads like BGS ARPIT and Swetchasat will test amateur radio and UHF communication capabilities.
Propulsion and Imaging Payloads
- RUDRA 1.0 and VYOM 2U will test new propulsion systems.
- SAR Imaging Demonstration Payloads GLX-SQ and Varuna will explore synthetic aperture radar capabilities.
Upcoming in 2025
The year 2025 is expected to be pivotal, featuring the first uncrewed HLVM-3 missions, a potential Indian astronaut on the ISS, and the NASA-ISRO SAR mission.
Lothal Maritime Heritage Complex will be a bridge between past, present & future: Union Minister Sonowal
- The Indian Express |
- Art and Culture |
- 2024-12-30
- Maritime Sector
- NMHC Lothal, Gujarat
Union Minister discussed the National Maritime Heritage Complex at Lothal, highlighting India's historical maritime power and future aspirations.
National Maritime Heritage Complex at Lothal
Union Minister highlighted the significance of the National Maritime Heritage Complex being developed at Lothal, emphasizing its role in showcasing India's historical maritime prowess and future aspirations.
Vision and Objectives
- The complex aims to preserve India's maritime history and demonstrate its ancient global maritime influence.
- It is envisioned as a hub for tourism and research, reflecting India's past as a maritime leader.
- The project is aligned with Prime Minister's vision of integrating heritage with development.
International Collaboration
- India is engaging with 20 nations and has signed MoUs with Vietnam, Portugal, and the UAE.
- Proposed collaborations include joint excavations and research with various countries, enhancing knowledge of ancient trade routes and shipbuilding techniques.
Project Timeline and Economic Impact
- The first phase is expected to be completed by August 2025, with the entire project by 2028.
- The complex is projected to generate 22,000 jobs and attract 25,000 daily visitors, significantly boosting the local economy.
Additional Insights
- Two major ports are being developed in Maharashtra and Great Nicobar to enhance India's maritime capacity, with a target to handle over 10,000 million metric tonnes of cargo by 2047.
Shifting spending trends: Sugar and salt decline; beverages, processed food rise
- The Indian Express |
- Economics (Macroeconomics) |
- 2024-12-30
- Ministry of Statistics and Programme Implementation (MoSPI)
- Household Consumption Expenditure Survey
The Ministry of Statistics and Programme Implementation's 2023-24 Household Consumption Expenditure Survey reveals increased food spending amid rising prices, narrowing rural-urban expenditure gaps, and shifting spending patterns on specific food and non-food items across Indian states.
Household Consumption Expenditure Survey 2023-24
Overview
The latest Household Consumption Expenditure Survey for 2023-24, released by the Ministry of Statistics and Programme Implementation (MoSPI), highlights a shift in the consumption patterns of Indian households amidst rising food prices. Notably, the share of spending on food items has increased in both rural and urban areas.
Overall Consumption Spending
- Rural average monthly consumption spending per person rose to Rs 4,122, marking a 9.3% increase from the previous year.
- Urban average monthly consumption was Rs 6,996, with an 8.3% rise over the same period.
- The gap between rural and urban consumption expenditure narrowed to 69.7% from 71.2% the prior year.
State-wise Consumption Patterns
- Western, northern, and southern states like Maharashtra and Tamil Nadu reported higher per capita consumption compared to national averages.
- Eastern and central states such as Bihar and Uttar Pradesh recorded lower spending.
Spending on Food and Non-Food Items
- The share of spending on food increased to 47.04% in rural and 39.68% in urban areas in 2023-24.
- Rural households spent Rs 1,939, while urban households spent Rs 2,776 on food monthly.
- Non-food spending accounted for 52.96% in rural areas and 60.32% in urban areas.
Popular Food Items
- Highest spending was on 'beverages, refreshments, processed food' in both rural (11.09%) and urban (9.84%) areas.
- Followed by 'milk and milk products' (rural: 8.44%, urban: 7.19%) and vegetables (rural: 6.03%, urban: 4.12%).
- Rural spending was higher on cereals, while urban areas prioritized fruits.
Trends in Food Spending
- Declining trend in spending on sugar and salt continues.
- Increased spending on 'beverages, processed food'.
- Rise in expenditure on vegetables and spices in 2023-24 compared to previous years.
Non-Food Expenditure Trends
- Rural spending focused on conveyance (7.59%), medical (6.83%), and clothing (6.63%).
- Urban spending emphasized conveyance (8.46%), miscellaneous goods (6.92%), and rent (6.58%).
No drugs that can elongate one’s life: Nobel laureate Venkatraman Ramakrishnan
- The Indian Express |
- Basic Science (Biology) |
- 2024-12-30
- Medical Education
- DNA analysis
Nobel laureate Venkatraman Ramakrishnan, speaking at MS University's Biochemistry Department's Platinum Jubilee, discussed the limitations in extending human life expectancy beyond 110 years, emphasizing the need for scientific breakthroughs and the role of healthy living.
Human Longevity and Ageing
Venkatraman Ramakrishnan, a Nobel laureate, addressed the challenges of increasing human life expectancy and the human desire to halt ageing. His insights were shared during the Platinum Jubilee celebrations of the Department of Biochemistry at MS University, aligning with the themes of his book, Why We Die — And How We Can Live Longer.
Key Insights on Ageing
- Life Span Variations:
- Different species have vastly different lifespans, such as mayflies (a day), giant tortoises (170+ years), and Greenland sharks (several hundred years).
- This variation suggests potential for understanding ageing and possibly influencing it.
- DNA and Ageing:
- DNA is comprised of a sequence of chemical letters, which can be altered through environmental impacts.
- Even non-carcinogenic factors in the natural living process can corrupt DNA.
- Role of Natural Compounds:
- Many attempts to halt ageing involve natural foods and compounds rather than drugs.
- While some are scientifically grounded, many lack strong evidence.
Evolution and Mortality
- Mortality Awareness:
- Humans uniquely understand their mortality, yet all animals have an instinct to live due to evolutionary pressures.
- Lifespan Breakthroughs:
- Extending human lifespans beyond 110 years requires significant scientific breakthroughs.
- Comparable to space exploration challenges, these advancements are unpredictable and difficult.
Conclusion
While breakthroughs in science may eventually extend human lifespans, the immediate focus should be on improving health. Most people live into their 80s and 90s, with only a few reaching 110 years. Realistic advancements are expected to improve health rather than significantly increase lifespan.
Expanding poll reach: Women fought in 390 LS seats, highest since 1957, shows EC data
- The Indian Express |
- Polity and Governance |
- 2024-12-30
- Diversity, Equity, and Inclusion
- Women in Legislature
The 2024 Lok Sabha elections saw a record 800 women candidates contesting across 390 constituencies, the highest since 1957. Women voter participation also increased, with 65.78% turnout, surpassing men for the second consecutive election.
Women Participation in the 2024 Lok Sabha Elections
Overview
The 2024 Lok Sabha elections marked a significant increase in women participation, with 800 female candidates contesting across 390 parliamentary constituencies. This is the highest number since the second general elections in 1957.
Trends in Women Candidacy
- The number of women candidates has been rising over the years:
- 372 in 2019 from 37 in 1957
Distribution of Women Candidates
- 167 constituencies had at least one woman candidate.
- Three constituencies had the highest number of women candidates at eight: Baramati, Secunderabad, and Warangal.
Election Outcomes for Women
- Of the 800 women candidates, only 74 won their seats.
- 629 women candidates lost their deposits.
Voter Participation
- Women voters again outnumbered men in 2024, continuing a trend from 2019.
- 65.78% of women voters cast their votes in 2024, compared to 65.55% men.
- Assam’s Dhubri seat recorded the highest female voter turnout at 92.17%, followed by Tamluk (West Bengal) at 87.57%.
- The number of female voters per 1,000 male voters reached a new high of 946, up from 926 in 2019.
Statistics
- Total registered women voters in 2024: 47.63 crore out of 97.97 crore electors.
- Comparable data for 1951 and 1971 is unavailable.
- In 2024, the number of constituencies without a female candidate was highest in UP (30), followed by Bihar (15) and Gujarat (14).
Kabul Shifts Focus to Iranian Ports as Pakistan Ties Hit Low
- The Economic Times |
- International Relations |
- 2024-12-30
- Chabahar Port
- INSTC
- Bandar Abbas
Amid deteriorating Afghanistan-Pakistan relations, Kabul is shifting trade routes from Karachi to Iran's Bandar Abbas and Chabahar ports, seeking access to the Indian Ocean. China has also utilized Bandar Abbas for transport to Afghanistan, while regional railway projects progress.
Shifting Trade Focus: Afghanistan's New Maritime Routes
Amid deteriorating diplomatic relations with Pakistan, Afghanistan is reorienting its trade routes from the Karachi port to Iran’s Bandar Abbas and Chabahar ports. This strategic shift aims to enhance Afghanistan's access to the Indian Ocean Region.
Strategic Developments and Collaborations
- China's Role: Recent transportation of goods from China to Afghanistan via Iran’s Bandar Abbas port, including a shipment of 1,000 rolls of iron, highlights increasing Sino-Afghan trade through Iranian routes.
- International North-South Transport Corridor (INSTC): Bandar Abbas serves as a crucial hub for the INSTC, linking India with Russia via Iran. This enhances trade efficiency and connectivity.
- Belt and Road Initiative (BRI): China's infrastructure projects, such as the China-Kyrgyzstan-Uzbekistan railway network, are advancing rapidly, further solidifying its influence in Central Asia.
India's Strategic Use of Chabahar Port
- India leverages Chabahar port for humanitarian aid to Afghanistan and aims to utilize it for broader trade with Central Asia.
- A tripartite agreement involving India, Iran, and Afghanistan facilitates seamless goods transport through Chabahar port, strategically located in southeastern Iran.
Future Connectivity Plans
- Afghanistan shows interest in revitalizing rail connectivity proposals between Iran and itself, to boost trade.
- Uzbekistan, having extended its railway to northern Afghanistan, aspires to integrate with the broader network via Afghanistan.
Despite A 10% Decline in Voting Across the World, India Reversed the Trend by Hitting the 65% Mark
- The Economic Times |
- Polity and Governance |
- 2024-12-30
- Election Commission
- Election
- Democracy and Development
The article highlights the significant global election activity in 2024, involving nearly half of the world's population across 70 countries. Emphasize the importance of upholding democratic integrity through credible elections.
Global Election Landscape in 2024
The year 2024 marked the largest global election exercise, with elections taking place in over 70 countries, engaging almost half of the world's population. Prominent democracies such as India, the USA, and Indonesia, along with smaller nations like Tuvalu, participated in these electoral processes.
Challenges in the Electoral Process
The integrity of elections is crucial for political democracy, as emphasized by BR Ambedkar. However, several factors such as process glitches, misinformation, and violence threaten the electoral process. The Stockholm-based International IDEA's 2024 report indicates a decline in electoral credibility over the past five years due to decreasing voter turnout and other issues.
Voter Turnout and Trends
- The global voter turnout for the year averaged 61%.
- India has notably maintained a high turnout rate of 65%, with women participating at higher rates.
- Despite the overall decline in global voter interest, India recorded significant voter engagement in its recent elections.
Issues in Campaign Dynamics
Current election campaigns often involve misinformation and divisive rhetoric. Social media amplification, aided by artificial intelligence, poses additional challenges. The Election Commission of India emphasizes the need for campaigners to take responsibility for maintaining electoral integrity.
Political and Electoral Outcomes
- A growing reluctance among political candidates to accept electoral outcomes is noted, with 20% of elections challenged between 2020-2024.
- Instances such as the US Capitol riot highlight potential dangers when electoral results are contested.
India's Electoral Framework
The Election Commission of India (ECI) is pivotal in ensuring democratic integrity, having successfully conducted numerous elections with minimal need for re-polling. India's role in supporting electoral integrity globally is recognized, given its strong execution capabilities.
Democracy and Economic Stability
The 2024 Economics Nobel highlights the significance of democracy and fair elections in fostering prosperity. Amidst global challenges, countries like India continue to ensure effective voter representation, contributing to the stability and promise of democracy.
Trump Backs Musk on H-1B Visas Amid MAGA Backlash
- The Economic Times |
- International Relations |
- 2024-12-30
- H-1B visa
- India-USA
- Indian Diaspora
US President-elect Donald Trump supports Elon Musk's stance on H-1B visas, emphasizing their importance for America's tech industry, despite criticism from some Trump supporters. Indian professionals, who comprise over 70% of H-1B holders, remain crucial to the sector.
Overview of H-1B Visa Debate
The discourse surrounding H-1B visas has been reignited with US President-elect Donald Trump expressing his support for the program, which aligns with the views of tech leader Elon Musk. This support is particularly relevant to thousands of Indians employed in the US through this visa.
Trump's Stance on H-1B Visas
- Donald Trump has publicly stated his support for H-1B visas, mentioning their significance at Trump-owned facilities.
- Trump has utilized the program extensively, describing it as valuable and beneficial.
Elon Musk's Advocacy
Musk has defended the H-1B program amidst criticism from some supporters of the Trump administration.
- Musk emphasizes the importance of recruiting global talent to maintain America's tech industry competitiveness.
- Tesla, Musk's company, was granted 724 H-1B visas in the current year.
- He highlights a persistent shortage of high-caliber engineering talent in Silicon Valley.
Contribution of Indian Professionals
- Over 70% of H-1B visa holders are from India, highlighting their critical contribution to the US tech sector.
- Vivek Ramaswamy, an associate of Trump, supports Musk's view, stressing the need for excellence over mediocrity.
Controversies and Opposition
- The appointment of Sriram Krishnan to oversee AI policy in the Trump administration ignited further debate over skilled immigration.
- Critics, including far-right Trump supporter Laura Loomer, argue that the focus on skilled immigration undermines American jobs.
- Loomer accuses Musk and Ramaswamy of prioritizing foreign workers, reflecting her anti-immigration stance.
A Big Theme Next Year Will be AI Taking Decisions on Your Behalf
- The Economic Times |
- Science and Technology |
- 2024-12-30
- AI
- plexing
- AI agent
The article discusses the evolving role of AI in everyday life, predicting a shift towards personalized AI agents capable of performing actions and facilitating monetization.
Influence of Silicon Valley in AI and Government Policy
There is a growing recognition of the importance of involving Silicon Valley experts in government policy-making, especially concerning artificial intelligence (AI).
- Figures like Sriram Krishnan are seen as advisers rather than decision-makers, providing guidance and influence.
- Involvement of tech experts is crucial as they are closely connected to ongoing advancements and industry dynamics.
Advancements and Future Trends in AI
AI technology is rapidly evolving, shifting from simple question-answering capabilities to more complex, action-oriented applications. This transformation is poised to significantly impact consumer interactions and business models.
- The concept of "plexing," or using AI for question-answering, is evolving towards more personalized and action-driven functionalities.
- AI is expected to transition into a phase where it acts more like a personal assistant, handling tasks and making decisions on behalf of users.
- Monetization opportunities for AI companies will increase as AI capabilities expand, with potential revenue streams from subscriptions, transactions, and innovative advertising models.
Impact on Monetization Strategies
- AI-driven platforms could see increased monetization through direct subscriptions, transaction cuts, and AI-mediated advertisements.
- Companies might engage in competitive bidding to reach AI agents, shifting the advertising focus from users to AI systems.
Future Outlook and Challenges
- The reliability of AI agents is crucial for realizing potential monetization models and broader adoption.
- Continuous advancements in AI are reducing errors and enhancing performance, setting the stage for further breakthroughs.
- The concept of AI agents handling advertisements discreetly could disrupt traditional advertising models, offering users greater control over their experience.
Higher FCNR Rates Fail to Bring in the Moolah
- The Economic Times |
- Economics (Macroeconomics) |
- 2024-12-30
- Reserve Bank of India (RBI)
- FCNR
- Cash Reserve Ratio (CRR)
The Reserve Bank of India's strategy to attract foreign currency deposits by allowing banks to offer higher interest rates has seen limited uptake. Despite raising the interest rate ceiling, banks have not increased rates, citing unfavorable economic conditions.
RBI's Move to Attract Foreign Currency Deposits
The Reserve Bank of India (RBI) attempted to draw capital flows by allowing banks to offer higher interest rates on foreign currency deposits for a specific period. However, the initiative has not been widely adopted since its announcement.
Interest Rate Adjustments
- The RBI temporarily increased the interest rate ceiling on Foreign Currency Non-Resident (FCNR) accounts.
- Banks were permitted to raise deposits with a spread of 400 basis points (bps) over an Alternate Reference Rate (ARR) for one to three years, up from 250 bps.
- For deposits of three to five years, the spread increased to 500 bps over ARR, from 350 bps.
Challenges in Attracting Depositors
- The rupee's depreciation and narrowing interest rate gap between the US and India have made attracting depositors challenging.
- Most banks have not raised interest rates despite the RBI's leeway, maintaining rates below the previous ceiling.
Banking Sector Response
- Some niche private banks may benefit from the plan due to their focus on overseas Indians.
- Banks match such deposits with foreign currency loan requirements, but the falling rupee and forex risk make this less economical.
Foreign Exchange Reserves
The RBI's move aims to boost foreign exchange reserves, which have declined by $60 billion since their peak in September due to RBI's dollar sales to support the rupee.
Current Interest Rates and Trends
- The spread between US and Indian interest rates is at its lowest, making Indian foreign currency deposits less attractive to the diaspora.
- The State Bank of India (SBI) offers 5.35% on one-year dollar deposits and 3.90% on five-year FCNR deposits, both lower than the revised spreads.
Future Considerations
Revised caps on interest rates are applicable until the end of March 2025. The Cash Reserve Ratio (CRR) exemption on incremental FCNR deposits might encourage banks to raise rates and attract more foreign exchange flows.
Historical Context
The FCNR (B) plan, initiated in 2013 by then-Governor Raghuram Rajan, allowed banks to mobilize nearly $30 billion in overseas deposits by providing a cushion against currency movement risks.
Rupee’s Backloaded Retreat Against the Dollar Mars Year of Rare Stability
- The Economic Times |
- Economics (Macroeconomics) |
- 2024-12-30
- Rupee depreciation
- International Monetary Fund (IMF)
- import-fed inflation
The article discusses the depreciation of the Indian rupee against the US dollar, highlighting its impact on inflation and economic stability.
Rupee's Performance and Economic Implications
The Indian rupee has experienced a significant decline against the US dollar, marking its seventh consecutive year of depreciation. This trend introduces import-fed inflation risks and complicates decisions on fund costs amidst slow economic growth.
Factors Influencing the Rupee's Decline
- The rupee's depreciation is common in emerging markets but this year witnessed a pronounced decline post a period of stability.
- The US Federal Reserve’s significant rate cut in September 2024, the first in four years, triggered increased volatility and depreciation of the rupee.
- Despite weathering a stock-market volatility earlier in the year, the Indian currency weakened after the Fed's rate reduction, aligning with global financial trends.
Comparison with Other Currencies
- The South Korean won has declined about four times more than the rupee at 13% on a weekly rolling basis.
- The Indonesian Rupiah fell 4.3% over the same period.
- Currencies of Mexico and Brazil experienced even steeper declines at over 16% and 21%, respectively.
Global Economic Outlook
- The IMF predicts a "stable yet underwhelming" global economy in 2025, with a growth rate of 3.2%.
- Potential risks include financial market volatility and the impact of new trade policies following the US presidential election.
Challenges and Policy Implications for India
- India faces challenges in maintaining export resilience amid potential tariff barriers and competitive devaluation in Asia.
- Despite a narrowing current account gap in September, expectations are for it to widen, increasing pressure on the rupee.
- Policymakers must address the potential inflation puzzle due to import costs in the fast-growing Indian economy.
How to keep going amid the chaos
- The Economic Times |
- Ethics |
- 2024-12-30
- Tragic Optimism
- Toxic Positivity
- Resilience
The article discusses the concept of "tragic optimism," a term coined by Viktor Frankl, emphasizing resilience in the face of suffering and uncertainty. It advocates for emotional flexibility, wise hope, and real action to maintain personal and communal resilience.
Resilience in Times of Disorder and Loss
In the face of disorder, uncertainty, or loss, resilience may appear unattainable. However, it is precisely during such times that maintaining optimism becomes essential. Embracing concepts like tragic optimism, wise hope, and real action can be pivotal in overcoming despair.
Tragic Optimism
Tragic optimism is a concept coined by Holocaust survivor and psychologist Viktor Frankl. It involves finding meaning and maintaining hope despite inevitable suffering, recognizing life's inherent challenges including:
- Physical pain: Due to our physical nature.
- Guilt: Arising from the freedom to make choices and bearing responsibility when things go wrong.
- Loss: Accepting the impermanence of cherished aspects of life, including life itself.
Tragic optimism acknowledges that happiness cannot be forced or expected at all times, allowing for a full range of emotions. Research indicates that emotional flexibility, such as holding onto hope amidst loss, is linked with greater resilience.
Avoidance of Toxic Positivity
Unlike toxic positivity, which denies reality and romanticizes suffering, tragic optimism accepts the inevitability of suffering. It encourages a balanced approach, avoiding both extreme optimism and excessive pessimism, and instead advocates for wise hope and actionable steps.
Wise Hope and Action
This approach involves:
- Accepting situations as they are.
- Focusing on controllable aspects.
- Drawing strength from past challenges.
Recognizing our agency fosters hope, and maintaining hope reinforces our sense of agency.
Core Factors of Resilience
Resilience is underpinned by several key factors:
- Leaning into community support.
- Being kind to oneself.
- Establishing small routines for mental health.
- Balancing feelings of loss with hope.
Embracing tragic optimism and wise action helps exert agency, contributing to personal and communal resilience.
NE states led growth in consumption expenditure during 2023-24: NSO
- Business Standard |
- Economics (Indian Economy) |
- 2024-12-31
- Household Consumption Expenditure
- NORTH EAST
Rural Sikkim and urban Meghalaya led India's growth in monthly per capita consumption expenditure from August 2023 to July 2024, with significant increases in MPCE. Additionally, the Gini coefficient indicated a decrease in consumption inequality in both rural and urban areas.
Household Consumption Expenditure Survey in North-Eastern States
The analysis of household consumption expenditure survey (HCES) data from August 2023 to July 2024 highlights significant growth in monthly per capita consumption expenditure (MPCE) in certain North-Eastern states of India.
Key Highlights
- Rural Sikkim
- MPCE increased by 21.3% to Rs 9,377.
- Rural Tripura
- MPCE grew by 20.2%.
- Rural Nagaland
- MPCE saw a 17.4% growth.
- Rural Mizoram
- MPCE increased by 14.2%.
- Urban Meghalaya
- MPCE rose by 21.9% to Rs 7,839.
- Urban Manipur
- MPCE grew by 21.8%.
- Urban Sikkim
- MPCE increased by 15.1%.
Consumption Inequality
- The Gini coefficient is used as a measure of consumption inequality.
- It declined to 0.237 in 2023-24 from 0.266 in 2022-23 for rural areas.
- In urban areas, it decreased to 0.284 in 2023-24 from 0.314 in 2022-23.
Additional Economic Context
- Crypto Assets: Could potentially negatively impact financial stability as per the RBI report.
- Microfinance Sector: Observed a doubling of stress from April to September as noted by RBI.
- Economic Outlook: High confidence and a bright outlook as per RBI Governor Malhotra.
- Secured Loans: RBI flags risks due to slippages in smaller personal loans.
- External Debt: Stood at $711.8 billion as of September, marking a 4.3% rise from June according to the Finance Ministry.