Fresh SSB batches starting 17th July. Referred articles were published in The Hindu.
1. What is the state of inequality in India?
- Growing Inequality: A recent World Bank report highlights that India's economic growth has been accompanied by a significant rise in inequality, making it one of the most unequal countries globally. The report indicates a Gini coefficient of 0.36 in 2011-12 and 0.222 in 2022-23.
- Income and Wealth Disparities:
- Income inequality is higher than consumption inequality in India.
- The top 1% of adults in India controlled 40% of the net household wealth in 2022.
- India's level of wealth inequality is comparable to countries like Uruguay, Eswatini (Swaziland), and South Africa.
- Factors Contributing to Inequality:
- Regressive tax structures and weak social safety nets.
- Limited access to quality education and healthcare for lower-income groups.
- Informal sector employment with low wages and job insecurity.
- Caste and gender disparities also play a significant role.
- Impact of Inequality:
- Hindrance to poverty reduction and sustainable development goals.
- Increased social unrest and instability.
- Lower levels of human capital development.
- Recommendations:
- Implement progressive tax policies.
- Increase public spending on education, healthcare, and social protection.
- Promote inclusive growth and formalization of the economy.
- Address structural inequalities based on caste, gender, and religion.
- Invest in social safety nets and employment generation programs.
2. From the Global South- BRICS Expansion and Global Influence: The 17th BRICS Summit in Rio de Janeiro (Brazil 2025) discusses the role of the Global South in a changing world order. BRICS has expanded to include Ethiopia, Egypt, Iran, Saudi Arabia, and UAE, bringing its membership to 11 countries and representing 30% of the global GDP.
- Challenges and Priorities for the Global South:
- Geopolitical complexities and economic uncertainties.
- Climate change and its disproportionate impact on developing countries.
- Need for a democratic, rules-based international order.
- Focus on sustainable development goals and poverty eradication.
- South-South Cooperation:
- Emphasis on exchanging knowledge, technology, and experiences among Global South countries.
- Initiatives like the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA) are crucial for financial stability.
- The Belt and Road Initiative is seen as a key aspect of South-South cooperation, facilitating trade and infrastructure development.
- Global Development Finance: The Global South seeks reforms in international financial institutions like the IMF and World Bank to ensure fairer representation.
- India's Role: India is seen as a crucial voice in the Global South, promoting a balanced approach to development. India emphasizes cooperation on digital public infrastructure, energy grids, and connectivity.
- Future Outlook: The Global South aims to build a more equitable and inclusive world order, challenging existing power dynamics. It seeks to reduce reliance on the US dollar and promote multipolarity.
3. How is India handling the refugee crisis?- Manipur Violence and Refugee Influx: The article discusses the refugee crisis in Manipur, particularly focusing on the influx of Kuki-Zomi people from Myanmar due to military crackdowns and ethnic violence.
- Refugee Numbers: Over 40,000 Myanmar refugees have entered Manipur since February 2021. Another 3,000 from Chin State entered in July 2023.
- Indian Government Response:
- The Ministry of Home Affairs extended the "Free Movement Regime" (FMR) but then suspended it in February 2024.
- The Assam Rifles were deployed to manage the border.
- The Manipur government has established camps and provided aid.
- However, the government's stance is often inconsistent, and some refugees have been forced back.
- Challenges and Concerns:
- Lack of a National Refugee Policy: India does not have a specific national law on refugees, which creates challenges in handling the crisis.
- Ethnic Tensions: The influx of refugees exacerbates existing ethnic tensions in Manipur.
- Security Concerns: The government cites security concerns as a reason for its inconsistent approach.
- Humanitarian Concerns: There are concerns about the welfare of refugees, including food, shelter, and security.
- International Law and Responsibility: The article highlights that India is not a signatory to the 1951 Refugee Convention, but it has a history of hosting refugees. International norms suggest that countries should protect refugees.
- Recommendations:
- Develop a national refugee policy to ensure humane treatment and consistent management of refugees.
- Strengthen border management to prevent illegal entry while ensuring humanitarian assistance.
- Address the root causes of displacement in Myanmar through diplomatic efforts.
- Promote inter-community dialogue and reconciliation in Manipur.
4. Why is Trump taking aim at BRICS?
- Trump's Threat to BRICS: President Donald Trump has threatened to impose tariffs on countries involved in creating a BRICS common currency. This threat follows his consistent criticism of BRICS as a whole.
- Reasons for Trump's Stance:
- De-dollarization: Trump views the BRICS initiative to create a common currency as a threat to the US dollar's dominance in global trade and finance.
- Anti-American Policies: He perceives BRICS as a bloc against American interests.
- Trade Imbalance: Trump aims to reduce trade deficits with BRICS nations.
- Geopolitical Rivalry: The US views BRICS as a challenge to its global influence, particularly with the inclusion of new members like Iran.
- Potential US Actions:
- Imposing tariffs on goods from BRICS nations.
- Sanctions on entities involved in BRICS financial initiatives.
- Diplomatic pressure on countries to distance themselves from BRICS.
- Weaponizing the dollar to maintain its global supremacy.
- BRICS Response and Strategy:
- BRICS aims to create a more equitable and inclusive global financial system.
- The bloc emphasizes South-South cooperation and mutual development.
- BRICS members seek to reduce reliance on the dollar for strategic autonomy.
- The bloc is exploring various alternative payment systems and trade mechanisms.
- Implications: The conflict highlights the ongoing shift in the global economic order. Trump's threats could further accelerate de-dollarization efforts by BRICS. The article suggests that while Trump's actions may seem irrational, they reflect a strategic push to maintain US dominance.
NEWS IN SHORTS
1. EC Reports 80% Voter Enumeration in Bihar
The Election Commission announced that 80% of electors in Bihar have submitted voter enumeration forms for special revision by July 25, with August 30 as the final deadline for all electors. This initiative aims to include those not found at their addresses, and the commission has received significant public support.
2. Maratha Military Landscapes Nominated for UNESCO List
Prime Minister Narendra Modi urged Indians to visit the forts of the Maratha Military Landscapes, which have been included in the prestigious UNESCO World Heritage List. The nomination encompasses 12 majestic forts, highlighting the rich history and cultural pride of the Maratha Empire.
3. Hasina's Daughter on Leave Amid Legal Woes
Saima Wazed, daughter of Bangladesh Prime Minister Sheikh Hasina and Southeast Asia Regional Director of WHO, has gone on indefinite leave. This follows legal issues in Dhaka, including allegations of lying on her academic record and forgery. WHO stated that her appointment was a five-year term.
4. India's Poor Reliance on Informal Credit
A financial inclusion program reveals that despite increasing bank account access, a significant portion of India's population, particularly in lower-income groups, still relies on informal credit sources like money lenders and friends. Data show a slower growth in formal borrowing compared to non-institutional credit.
5. IIM-Calcutta Student Alleges Rape
A 26-year-old student of IIM-Calcutta has filed a police complaint alleging rape by a batchmate. The incident reportedly occurred at a city court and in a hotel. The accused was arrested and released on bail, with police investigations ongoing.
6. Over 1,500 Maoists Surrender in Chhattisgarh
Chhattisgarh Chief Minister Vishnu Deo Sai announced that over 1,500 Maoists have surrendered in the past 15 months, indicating a growing trust in government policies. This includes 23 Maoists who surrendered recently in Bastar. The government offers incentives for surrendered individuals.
7. UGC's Anti-Ragging System Fails: Delhi HC
The Delhi High Court criticized the UGC's anti-ragging framework, stating it has "utterly failed" to curb ragging and student suicides. Despite significant spending, the anti-ragging helpline received over a thousand complaints in 2024, the highest in nine years. The court emphasized the need for effective measures to ensure student safety.
8. Screening Not Stopping Even After Visa Is Issued: U.S. Embassy
The U.S. Embassy warns that visa screening does not stop after a visa is issued, and individuals violating U.S. laws and immigration rules will be deported. Continuous checking includes monitoring social media. The embassy cautions against misrepresentation, as providing false information can lead to severe penalties.
9. Dengue Vaccine Trials in India Progressing
The Indian Council of Medical Research (ICMR) and Panacea Biotec have initiated phase three trials for an indigenous dengue vaccine, involving 8,000 participants across 20 sites. This landmark trial aims to evaluate the efficacy of the tetravalent dengue vaccine developed by Panacea Biotec.
10. SC Reviews Ruling on IPS Deputation to CAPFs
The Supreme Court has received a review petition against its ruling regarding IPS deputation to the Central Armed Police Forces (CAPFs). This comes after a decision by a bench that affected IPS officers' deputation to the rank of Inspector General. The Ministry of Home Affairs has continued to appoint IPS officers to senior positions.
11. Aircraft Crash Report Points to Human Intervention
A preliminary report on the crash of an Air India Boeing 787-8 aircraft in Ahmedabad suggests "human intervention" as a cause. The report indicates two pilots switched off fuel control switches, leading to engine shutdown. The Air Accident Investigation Bureau has found the second check not carried out.
12. Astronaut Shukla to Undergo Seven-Day Rehabilitation
Astronaut Shubhanshu Shukla will undergo a seven-day rehabilitation program after returning to Earth on July 15 from his 18-day stay at the International Space Station (ISS). Shukla and three other astronauts are scheduled to undock from the ISS on July 14.
13. Centre Exempts 78% of Thermal Plants from Anti-Pollution Systems
The Union Environment Ministry has exempted 78% of India's thermal power plants from installing flue gas desulphurisation (FGD) systems, designed to cut sulphur dioxide emissions. Only about 11% of plants near major cities or critically polluted areas are now mandated to install these systems, drawing criticism
14. Assam Rifles Seize Meth Tabs Worth ₹112.4 Crore in Mizoram
Assam Rifles recovered illegal methamphetamine tablets valued at ₹112.401 crore (approximately 3,33,300 tabs) in Mizoram's Champhai district. Acting on specific intelligence, a patrol team intercepted individuals near the Indo-Myanmar border. The recovered items have been handed over to the police for investigation.
15. Trump Announces 30% Tariff on Mexico and EU from August 1
President Donald Trump announced a steep 30% tariff on goods from Mexico and the European Union, effective August 1. This move, aimed at leveraging trade negotiations and addressing trade imbalances, could significantly impact U.S. trade relations and supply chains.
16. Erdogan Hails Disarmament of Kurdish PKK Militants
Turkish President Recep Tayyip Erdogan hailed the start of a disarmament process by militant Kurdish separatists from the PKK, calling it the end of a "painful chapter" in Turkey's troubled history. This move signifies a major step towards peace and ending the decades-long conflict.