04 April | Daily Current Affairs : India holds fire as Trump announces tariffs And More

GS PAPER 1

International Relations

On April 2, U.S. President Donald Trump declared a wide-ranging tariff hike under the International Emergency Economic Powers Act (IEEPA), targeting major U.S. trading partners including India, with tariffs up to 49%. India received a 27% tariff, despite ongoing bilateral trade negotiations. The move sparked global reactions, raising questions about the future of international trade and India’s response.

Nature and Scope of the Tariffs

• General 10% baseline tariff on all countries, effective from April 5.
• Higher reciprocal tariffs (up to 49%) targeting countries with significant trade surpluses with the U.S.
• Trump cited “national emergency” due to trade deficits as justification.
• India was hit with a 27% tariff, despite reducing its own tariffs on some U.S. goods like motorcycles.

India’s Response: A Strategic Pause

• India’s Commerce Ministry is “examining implications” and consulting stakeholders.
• Emphasized its desire to pursue a Bilateral Trade Agreement (BTA) with the U.S., aiming for $500 billion trade by 2030.
• India’s calm reaction contrasts with EU, China, and Canada, who vowed countermeasures.

Impact on Indian Economy

1. Export Sectors Affected:

• Gems & Jewellery:
  • India exports over $10 billion annually to the U.S.; 30% of total jewellery exports.
  • Tariffs pose serious risks to volume and competitiveness.
• Automobiles & Auto Parts:
  • Not covered in this round, so minimal immediate impact.
• Aerospace Supply Chain (e.g. Boeing):
  • Potential delays in aircraft parts and deliveries due to disrupted logistics.

2. Trade Diversion Advantage:

• India’s 27% tariff is lower than those on competitors:
  • Vietnam (46%), Thailand (37%), Bangladesh (37%), Sri Lanka (44%), Pakistan (30%)
• This may provide slight comparative advantages in select export categories.

Geopolitical & Strategic Implications

• Tariffs risk derailing the India-U.S. strategic partnership, especially amidst ongoing negotiations for deeper economic cooperation.
• Could force India to recalibrate its tariff structure to remain globally competitive.
• India’s average MFN tariff (17%) is much higher than China (7.5%), EU (5%), and U.S. (3.3%), a point used to justify U.S. action.

Legal and Institutional Framework

• Trump invoked IEEPA of 1977, framing trade deficits as a “national emergency”.
• USTR’s “Foreign Trade Barriers” report targeted India for high tariffs on various goods (e.g., cars, electronics, agricultural produce).

Way Forward for India

1. Accelerate BTA Negotiations:
   • A comprehensive trade deal can institutionalize tariff relief and market access guarantees.
2. Diversify Export Markets:
   • Reduce over-reliance on U.S. by engaging more with EU, ASEAN, Africa, and Latin America.
3. Rationalize Domestic Tariffs:
   • Align MFN tariff rates with global norms to avoid future retaliatory measures.
4. Export Incentive Reforms:
   • Strengthen PLI schemes, simplify customs procedures, and support vulnerable sectors like jewellery and textiles.
5. WTO & Multilateral Engagement:
   • Leverage WTO mechanisms to challenge arbitrary tariff hikes and build coalitions with like-minded nations.

Conclusion

India’s restrained reaction to the U.S. tariff announcement underscores a mature trade diplomacy approach, prioritizing long-term strategic ties over short-term retaliation. However, it must address structural issues in its tariff regime and negotiate stronger bilateral trade frameworks to safeguard its economic interests in an increasingly protectionist world.

UPSC Mains Practice Question

Ques :“India’s measured response to the recent U.S. tariffs reflects its evolving trade diplomacy.” Examine in the context of changing global trade dynamics. (250 words)

GS PAPER 2

Prelims Fact

Kannadippaya, a traditional mat handcrafted by tribal communities in Kerala, has received the Geographical Indication (GI) tag. This recognition not only offers legal and market protection but also helps place tribal artisanal work on the global map, encouraging sustainable livelihoods and cultural preservation.

What is Kannadippaya?

• Literal Meaning: “Mirror Mat” – named for its reflective weaving pattern.
• Material: Made from the inner layers of reed bamboo, offering insulation properties:
  • Warmth in winter
  • Cooling in summer
• Communities Involved:
  • Tribes: Oorali, Mannan, Muthuva, Malayan, Kadar
  • Artisans: Ulladan, Malayarayan, Hill Pulaya
  • Located in districts of Idukki, Thrissur, Ernakulam, Palakkad

Significance of GI Tag

• First tribal handicraft from Kerala to receive GI status.
• Awarded to:
  • Unarvu Pattikavargha Vividodesha Sahakarana Sangam, Venmani
  • Vanasree Bamboo Craft & Vanavibhava Shekarana Unit, Uppukunnu
• Brings legal protection, brand identity, and exclusive marketing rights under the Geographical Indications of Goods (Registration and Protection) Act, 1999.

Cultural and Economic Relevance

1. Preserving Tribal Heritage

• Ensures documentation and revival of indigenous knowledge systems.
• Boosts intergenerational transfer of traditional skills among tribal youth.

2. Sustainable Livelihood

• Can become a source of income for marginalized forest-based communities.
• Encourages eco-friendly, handcrafted products aligned with global sustainability trends.

3. Market and Export Potential

• Growing demand for natural, biodegradable, and artisan-made goods.
• GI tag offers scope for integration into global handicraft value chains.

Challenges Highlighted

• Lack of structured market access or organized platforms for sale.
• Limited awareness and skill training among younger generation.
• Need for infrastructure support, design innovation, and marketing strategy.

Way Forward

1. Skill Development and Design Intervention
   • Partner with design institutes (e.g., NID, NIFT) for modern aesthetics and usability.
2. Institutional Support
   • Encourage tribal cooperatives and SHGs to scale production.
   • Use Tribal Cooperative Marketing Development Federation (TRIFED) and Van Dhan Yojana for promotion.
3. E-commerce and Global Branding
   • Integrate Kannadippaya into online platforms like Tribes India, GeM, and Amazon Karigar.
4. Tourism and Cultural Promotion
   • Position Kannadippaya as part of eco-tourism circuits in Kerala.
5. Policy Push
   • Ensure convergence with Atmanirbhar Bharat, One District One Product (ODOP), and GI promotion schemes under DPIIT.

Conclusion

The GI tag for Kannadippaya is not just a recognition of craft but a validation of tribal cultural identity and sustainable development. It exemplifies how traditional knowledge systems, if supported through modern legal and market frameworks, can lead to inclusive growth, heritage preservation, and global recognition of India’s grassroots innovations.

UPSC PrelimsPractice Question

Ques :With reference to Geographical Indications (GI) in India, consider the following statements:

1. A GI tag is a form of intellectual property right that is granted to a product that originates from a specific geographical area.
2. The Geographical Indications are registered under the Department for Promotion of Industry and Internal Trade (DPIIT).
3. Kannadippaya is the first tribal handicraft from Kerala to receive a GI tag.

Which of the statements given above is/are correct?

1. A) 1 and 2 only
2. B) 2 and 3 only
3. C) 1 and 3 only
4. D) 1, 2 and 3

Ans : D)

GS PAPER 3

International Relations

Undersea cables form the backbone of global internet connectivity. Despite being a digital powerhouse, India lags behind in this critical infrastructure, exposing it to multiple vulnerabilities and bottlenecks. The recent landing of Airtel’s 2Africa Pearls system and SEA-ME-WE-6 cable in Chennai and Mumbai highlights both progress and challenges in this domain.

What are Undersea Cables?

• Fiber-optic cables laid on the ocean floor, linking continents and facilitating global internet, voice, and data connectivity.
• Capable of carrying terabits of data per second across thousands of kilometers.
• Account for 90% of global data transfers, 80% of international trade, and over $10 trillion in financial transactions (Goldman Sachs estimate).

India’s Subsea Cable Ecosystem:

• 17 international cable systems land in India, mostly in Mumbai and Chennai.
• Domestic projects:
  • CANI (Chennai-Andaman & Nicobar Islands)
  • KLI (Kochi-Lakshadweep Islands)
• Key Issues:
  • Heavily centralized: 95% landings occur in a small patch in Versova, Mumbai.
  • Low global share: India has just 1–3% share in global cable landing stations and systems.

Challenges in Laying Cables in India:

1. Bureaucratic Hurdles:
   • Requires ~51 clearances across ministries (DoT, MoEF, Fisheries, Home Ministry, etc.)
   • Delays increase cost and deter investment.
2. Geopolitical and Strategic Vulnerabilities:
   • Overdependence on limited routes and chokepoints like Red Sea (Bab-el-Mandeb Strait).
   • Cable cuts due to conflicts (e.g., Houthi attacks) could disrupt up to 25% of India’s internet.
3. Physical Damage Risks:
   • Frequent cable damage from fishing trawlers, marine construction, and natural events.
   • No domestic cable repair vessels; dependent on foreign ships with delayed approvals.

Why is India Vulnerable?

• High concentration of landings → Single point of failure risk.
• Lack of redundancy in alternate landing sites.
• Insufficient domestic capacity in repair infrastructure and depot facilities.
• Dependence on foreign consortiums and capital for cable projects.

Way Forward: Recommendations

1. Regulatory Simplification:
   • Create a single-window clearance mechanism for faster approvals.
   • Establish a dedicated subsea cable authority under the DoT.
2. Infrastructure Diversification:
   • Develop additional landing stations along the east and west coasts.
   • Encourage tier-2 coastal cities like Kochi, Visakhapatnam, or Tuticorin as alternative hubs.
3. Strategic Investment:
   • Build domestic cable repair ships and cable storage depots.
   • Offer incentives to private players for investing in cable maintenance and landing facilities.
4. International Collaboration:
   • Participate in global subsea projects like 2Africa, SEA-ME-WE, and IAX/IEX.
   • Align with QUAD, IORA, and Indo-Pacific initiatives for digital connectivity.
5. Cybersecurity and Resilience:
   • Invest in real-time monitoring systems and AI-based threat detection.
   • Incorporate cable protection zones and legal enforcement against trawler damage.

Conclusion

India’s digital economy is expanding rapidly, but its undersea cable infrastructure is yet to catch up. With growing geopolitical tensions and increasing data demand, India must act decisively to secure its digital lifelines. A robust, diversified, and resilient subsea cable network is essential not just for internet access, but for national security, economic growth, and strategic autonomy.

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UPSC Mains Practice Question

Ques :The undersea cable infrastructure is critical to India’s digital sovereignty.” In the context of recent developments, examine the challenges and suggest policy measures for strengthening this infrastructure. (250 words)

GS PAPER 4

Prelims Fact

Hungary, under Prime Minister Viktor Orbán, has announced its intention to withdraw from the International Criminal Court (ICC) during a high-profile visit by Israeli Prime Minister Benjamin Netanyahu, who is currently facing an ICC arrest warrant. This development has sparked global concern over the erosion of international justice mechanisms and highlights geopolitical alliances rooted in mutual populist ideologies.

Background: ICC and the Arrest Warrant

• The International Criminal Court (ICC) is a permanent judicial body established under the Rome Statute (2002) to prosecute individuals for genocide, war crimes, crimes against humanity, and aggression.
• Recently, the ICC issued an arrest warrant against Israeli Prime Minister Netanyahu in relation to actions taken during the Israel-Palestine conflict.
• Despite being a signatory to the Rome Statute, Hungary has now declared its intention to withdraw, aligning itself politically with Israel.

Significance of Hungary’s Withdrawal

1. Erosion of Multilateral Institutions

• A founding EU member withdrawing from the ICC undermines the credibility and authority of international legal institutions.
• Sets a dangerous precedent for other countries to avoid accountability under international law.

2. Political Signaling and Alliances

• Hungary’s red-carpet welcome for Netanyahu is symbolic of the Orbán government’s alignment with nationalist and right-wing global leaders.
• Both Hungary and Israel have expressed criticism of international institutions, calling them biased or ineffective.

3. Strain on EU Unity

• Hungary’s action may further isolate it within the European Union, where support for international justice and the ICC remains high.
• Could deepen the divide between Western European liberal democracies and Central/Eastern populist regimes.

Legal and Geopolitical Implications

• The ICC does not have its own enforcement mechanism and depends on member states for cooperation.
• Withdrawal by Hungary may embolden other states under scrutiny by the ICC to follow suit (e.g., Russia, Philippines, Sudan).
• Weakens the normative power of international criminal law and shrinks the jurisdictional reach of the ICC.

India’s Perspective

• India is not a party to the ICC (has not ratified the Rome Statute), citing concerns about sovereignty, possible misuse of prosecutorial powers, and lack of accountability mechanisms within the ICC.
• Developments like this reinforce India’s stance on cautious engagement with supranational legal bodies.
• However, India continues to support rule-based international order and peaceful conflict resolution through bilateral and multilateral diplomacy.

Way Forward

1. Global Dialogue on Reforming the ICC:
   • Enhance fairness, transparency, and non-selectivity in prosecutions to retain member trust.
2. EU Mediation and Pressure:
   • The European Union may need to engage diplomatically with Hungary to prevent further institutional drift.
3. Strengthen Domestic Legal Mechanisms:
   • Encourage states to prosecute international crimes under their own jurisdiction as complementary to ICC goals (principle of complementarity).
4. Balanced Role for International Justice:
   • Ensure international courts act without political bias while upholding justice and human rights.

Conclusion

Hungary’s exit from the ICC and its support of a leader facing war crimes charges raise serious concerns about the future of international accountability. The development reflects a growing contestation between global legal norms and nationalistic politics, posing a significant challenge for multilateralism and global governance.

UPSC Prelims Practice Question

Ques :The Rome Statute, often seen in the news, is related to:

1. A) The establishment of the World Trade Organization
2. B) Regulation of space exploration activities
3. C) International civil aviation rules
4. D) Establishment of the International Criminal Court

Ans : D)

In News :  Seaweed farming

Seaweed farming is gaining global recognition as a sustainable and profitable industry.

• Why in the News?

• The Pradhan Mantri Matsya Sampada Yojana (PMMSY) aims to boost India’s seaweed production to 1.12 million tonnes over five years.
• The $5.6 billion global seaweed industry is expanding rapidly, with India’s contribution increasing steadily.

• What is Seaweed?

• Seaweed is a marine plant that grows in oceans and seas.
• It is nutrient-dense, containing 54 trace elements, vitamins, minerals, and amino acids.
• It helps combat cancer, diabetes, arthritis, heart disease, and high blood pressure while also boosting immunity.
• Unlike traditional crops, seaweed does not require land, freshwater, fertilizers, or pesticides, making it an eco-friendly and sustainable agricultural resource.
• Microscopic seaweeds, such as phytoplankton, form the foundation of marine food chains and play a key role in oceanic primary productivity.
• Large seaweeds, like giant kelp, create dense underwater forests that serve as biodiversity hotspots, offering shelter and food to a variety of species.
• Seaweeds contribute to oxygen generation and carbon sequestration, playing a significant role in climate regulation.

UPSC Prelims Practice Question

Ques :Which of the following are advantages of seaweed cultivation?

1. It requires no freshwater or arable land.
2. It helps in carbon sequestration and oxygen generation.
3. It reduces ocean acidification.
4. It requires high use of fertilizers and pesticides.

Select the correct answer using the code below:

1. A) 1 and 2 only
2. B) 1, 2 and 3 only
3. C) 2, 3 and 4 only
4. D) 1, 2, 3 and 4

Ans : B)

GS PAPER 5

Editorial Analysis

Context :

The growing adoption of satellite-based internet services such as SpaceX’s Starlink marks a shift in global connectivity infrastructure — with deep implications for national sovereignty, economic dependency, and geopolitical alignment. India’s collaboration with private players like SpaceX, through Airtel and Jio, raises critical questions about balancing technological pragmatism with strategic autonomy in the era of the New Space Race.

The Context: India and Starlink

• India’s digital divide remains stark, especially in remote and rural areas where fiber optic cables and cell towers are absent.
• Starlink, a low-earth orbit (LEO) satellite internet constellation by SpaceX, offers a promising solution, with support from Indian telecom giants Airtel and Jio.
• These partnerships route foreign infrastructure through domestic channels, mitigating some regulatory concerns.

Key Concerns and Dimensions

1. Geopolitical Realignment

• Choosing Starlink signals India’s preference for democratic alliances in the Indo-Pacific over Chinese-led alternatives like GuoWang.
• It reflects a geopolitical shift towards alignment with U.S. tech infrastructure rather than authoritarian models.

2. Digital Sovereignty vs. Market Dependency

• Digital Sovereignty implies national control over digital infrastructure and data.
• India currently risks falling into a “market dominance” trap — benefiting from high-speed internet but ceding control to foreign tech giants.
• This parallels concerns seen in Ukraine, where SpaceX restricted access during military operations.

3. Monopolistic Trends in Space

• Starlink has ~7,000 satellites, far outnumbering rivals like OneWeb (~650) and Amazon’s Kuiper (nascent).
• This first-mover advantage risks turning space infrastructure into a monopoly, impacting pricing, competition, and national leverage.

4. Strategic Neglect of Public Sector

• The absence of BSNL, a state-owned telecom giant, in Starlink partnerships is a missed opportunity for public sector integration into critical infrastructure.
• BSNL could have ensured direct state oversight and reduced strategic dependence on private players.

Economic vs. Geopolitical Value Framework

Scenario Economic Value Geopolitical Control Example         Digital Sovereignty High High China’s GuoWang, aspirational for India Market Dominance High Low Starlink in India Strategic Asset Low High ISRO’s limited indigenous capabilities Marginal Presence Low Low Amazon Kuiper, emerging players

India’s Way Forward

Short-Term Measures

• Enforce technology transfer clauses, local data storage, and regulatory buffers.
• Create a framework for joint ventures between foreign satellite companies and public sector players (e.g., BSNL).

Medium to Long-Term Strategy

• Invest heavily in ISRO’s satellite internet capabilities and public-private partnerships.
• Develop a national satellite constellation with indigenous production of LEO satellites.
• Foster domestic competition through startup incentives and FDI regulation.

International Collaboration

• Engage in global dialogues for space traffic management, orbital debris control, and satellite spectrum governance.
• Work with like-minded countries on open and inclusive internet governance frameworks.

Challenges Ahead

• Affordability: Satellite internet may remain inaccessible to rural populations unless tiered pricing models or government subsidies are designed innovatively.
• Orbital Commons: Without international regulations, space debris and traffic congestion may jeopardize long-term sustainability.
• Cybersecurity and data sovereignty remain at risk with foreign control over internet infrastructure.

Conclusion

The rise of satellite internet signifies more than just a technological leap — it marks a shift in digital geopolitics. For India, the goal should be to leverage private partnerships in the short term while strategically working towards indigenous digital sovereignty. Striking a balance between economic value and national control will define India’s role in the emerging space-digital order.