India's Foreign Exchange Reserves Decline

India's foreign exchange reserves experienced a decline of $4.112 billion in the week ending December 27, totaling $640.279 billion. This decline is attributed to the Reserve Bank of India's interventions aimed at stabilizing the rupee, which has been retreating against the US dollar.

Key Factors and Statistics

• The current decline marks the fourth consecutive weekly fall in foreign exchange reserves.
• Since October, the reserves have decreased by over $60 billion.
• Heavy outflows of foreign institutional investment over the past two months have contributed to this decline.

Causes of Decline

• The Reserve Bank of India has been selling dollars from its reserves to slow the rupee's depreciation.
• The rupee has faced pressure as overseas investors seek safer havens and take dollars out of the country.
• The rupee closed at a new low of 85.78 against the dollar, marking a 1.3% depreciation over the month.

Impact of Global Currency Fluctuations

• The depreciation of reserves held in other global currencies such as the euro, pound, and yen has also affected the overall reserves as the US dollar has strengthened globally.

Historical Context

• The all-time high for India's forex reserves was $704.885 billion on September 27.
• Since achieving that peak, reserves have generally been depleting week after week, with some exceptions.

Current Respiratory Illness in China

The health ministry has addressed concerns regarding a new respiratory illness in China, emphasizing there is no immediate cause for alarm.

Situation Overview

• The illness is linked to the human metapneumovirus (HMPV), known to cause common cold-like symptoms.
• The government is actively monitoring the situation and has observed no significant increase in infections within the country.

Government's Preparedness

• According to Atul Goel, Director-General of Health Services, there is no substantial rise in respiratory outbreaks for December 2024.
• India is equipped to handle any potential increase in cases, with hospitals ready to manage respiratory virus outbreaks, especially common in winter.

Public Advisory

General precautions are advised to prevent the spread of respiratory infections:

• Avoid contact with others if experiencing cough or cold symptoms.
• Use a handkerchief or towel when coughing or sneezing.
• Take standard medications for cold or fever as needed.

Situation in China

• Reports and social media indicate overcrowded hospitals and overwhelmed crematoriums in China.

Poverty Reduction in India

Poverty in rural areas of India has significantly declined to less than 5% for the first time, outpacing urban poverty reduction according to an analysis by SBI Research.. This trend is attributed to higher consumption growth among the bottom 0-5% decile, supported by government initiatives.

Key Statistics

• Rural poverty fell to 4.86% in 2023-24 from 7.2% in 2022-23 and 25.7% in 2011-12.
• Urban poverty decreased to 4.09% in 2023-24 from 4.6% in 2022-23 and 13.7% in 2011-12.
• The overall poverty rate in India now ranges from 4% to 4.5%, with minimal extreme poverty.

Potential Revisions

The report suggests that these figures might be revised following the completion of the 2021 census and updated urban-rural population data.

Urban-Rural Consumption Gap

• The consumption gap between urban and rural areas has narrowed from 83.9% in 2011-12 to 69.7% in 2023-24.

Government Initiatives

• Direct Benefit Transfer (DBT): Helped in increasing the consumption capability of rural populations.
• Investments in Rural Infrastructure: Contributed to economic growth and poverty reduction.
• Boosting Farmer's Income: Improved the living standards of rural farmers and reduced poverty levels.

Key Points from Digital Personal Data Protection Act of 2023 (DPDP)

The DPDP Act of 2023 mandates significant changes in the way data is handled, particularly focusing on children and data breaches.

Children's Privacy and Social Media Access

• Children under the age of 18 require verifiable parental consent to access social media.
• This regulation is aimed at protecting minors from unauthorized data usage.

Data Fiduciaries Classification

• Data fiduciaries are categorized into ecommerce companies, gaming intermediaries, and social media firms.
• These entities must delete personal data of inactive users after three years.

Data Breach Protocol

• Data fiduciaries must report data breaches to the Data Protection Board within 72 hours.
• Users must be informed of breaches in a concise, clear, and plain manner.
• Details provided should cover the nature, extent, and impact of the breach, along with risk mitigation measures.

Data Localisation and Protection Measures

• Future data localisation requirements may be introduced for significant data fiduciaries.
• Significant data fiduciaries are required to conduct an annual data protection impact assessment and audit.

Stakeholder Involvement and Comments

• The draft rules are open for stakeholder comments until February 18.

Expert Opinions

• Aparajita Bharti noted the draft gives direction for implementation and raised concerns about potential data localisation.
• Nehaa Chaudhari highlighted the flexible approach to parental consent as beneficial.

India's Protest Against China's Territorial Claims

India has lodged a "solemn protest" with China over the establishment of two new counties in Hotan Prefecture, as parts of these regions fall within the Indian Union Territory of Ladakh.

India's Position on Sovereignty

• India maintains a long-standing and consistent position on its sovereignty over the area.
• The creation of new counties by China does not legitimize China's "illegal and forcible" occupation.
• External Affairs Ministry spokesperson Randhir Jaiswal emphasized India's non-acceptance of Chinese occupation.

Diplomatic Actions

• India has formally protested through diplomatic channels.
• Concerns were raised regarding the announcement made on December 25, 2024, by Xinhua about a hydropower project on the Yarlung Tsangpo River.
• India stressed the importance of transparency and consultation with downstream countries regarding mega projects on shared rivers.

Concerns Over Mega-dam Construction in Tibet

• China has approved a mega-dam on the Yarlung Tsangpo River, which could significantly impact the Brahmaputra River's flow into India.
• The dam is poised to generate three times more power than the Three Gorges Dam.
• There are geopolitical, environmental, and seismic concerns, especially with its location near Arunachal Pradesh.

Summary

India remains firm on its territorial claims, protesting China's actions in Ladakh and expressing concerns over potential impacts on the Brahmaputra River due to upcoming Chinese hydropower projects. Diplomatic engagements continue to ensure protection of India's interests.

Supreme Court Ruling on CBI and State Government Consent

The Supreme Court has delivered a significant verdict concerning the powers of the Central Bureau of Investigation (CBI) in relation to state government consent when investigating central officials.

Judgment Overview

• The CBI does not need the approval of state governments to register an FIR against Central officials posted in different states.
• This ruling overturns a previous decision by the Andhra Pradesh High Court.

Key Aspects of the Case

• Background: The case involved FIRs against central government employees under the Prevention of Corruption Act (PC Act) in Andhra Pradesh.
• Petitioner's Argument: The accused argued that the general consent given to the CBI by the undivided Andhra Pradesh was not applicable post-bifurcation, necessitating fresh consent from the newly formed Andhra Pradesh.
• High Court Decision: The Andhra Pradesh High Court had quashed the proceedings based on this argument.

Supreme Court's Interpretation

• The apex court stated that the consent of a state government is not required for the CBI to investigate central offences.
• The offenses in question were under central legislation and involved central government employees, making state consent unnecessary.
• The consent regime under Section 6 of the DSPE Act is not intended to hinder investigations into central offences merely because they occur within a state’s territorial boundaries.

Implications of the Judgment

• This ruling clarifies the scope of the CBI's authority in conducting investigations against central officials across states without needing state consent.
• It emphasizes the CBI's ability to operate under central legislation without state-imposed barriers.