16 April | Daily Current Affairs : Retail inflation at its lowest since 2019 And More

GS PAPER 1

Indian Economy

Retail inflation in India fell to 3.34% in March 2025, marking its lowest level since September 2019. This decline in inflation is primarily attributed to the significant moderation in food prices.

• The easing inflation trajectory comes on the back of two consecutive repo rate cuts by the Reserve Bank of India (RBI), each by 25 basis points. This development has significant implications for monetary policy, fiscal space, household consumption, and overall macroeconomic stability.

Key Highlights and Trends:

• Retail inflation, measured by the Consumer Price Index (CPI), dropped from 3.61% in February to 3.34% in March. The major contributor to this decline is the Consumer Food Price Inflation (CFPI), which registered a sharp fall to 2.7%, the lowest in three years. Prices of essential food items like vegetables, eggs, and pulses declined significantly. For instance, tomato prices fell by 35%, while pulses and eggs saw deflation of 2.7% and 3%, respectively.
• Interestingly, urban inflation showed a marginal increase from 3.32% to 3.43%, while rural inflation fell to 3.25% from 3.79%. This divergence reflects the differences in consumption baskets and cost structures between rural and urban households.
• Fuel and light inflation, which had been in deflationary territory since September 2023, rose moderately to 1.48%. Despite this, overall price pressures remained subdued, with economists suggesting that inflation is likely to remain below the RBI’s medium-term target of 4% in the near future.

Policy Implications:

• The consistent softening of inflation strengthens the case for further monetary policy easing. Economists now anticipate a 50 basis point rate cut in the near term. The RBI’s recent decisions indicate a shift in priority from inflation management to supporting economic growth, especially amid global headwinds and domestic demand fragility.
• The terminal repo rate is expected to stabilize between 5% and 5.25%, suggesting that the central bank may adopt a more accommodative stance in the coming quarters. This aligns with the broader goal of stimulating investment and consumption to sustain economic recovery.

WPI Trends and Confirmation:

• The Wholesale Price Index (WPI) data released by the Commerce Ministry also reflected a similar trend, with wholesale inflation easing to 2.05% in March from 2.38% in February. The WPI food index rose at a slower pace, and manufactured goods inflation remained under control. This convergence of CPI and WPI data indicates a broad-based easing of price pressures across the supply chain.

Regional Variations and Social Impact:

• Inflation continues to show significant inter-state variation. Kerala reported the highest inflation at 6.6%, while Delhi and Telangana recorded the lowest rates at 1.5% and 1.1%, respectively. These disparities reflect differences in supply chains, local demand conditions, and administrative efficiency.
• However, despite lower food and fuel inflation, underlying core inflation (excluding food and fuel) remains sticky. According to experts, this could adversely affect lower-income households, who face sustained price pressures in non-food essentials such as housing, education, and healthcare. This raises concerns about real consumption expenditure, particularly in the informal sector.

Conclusion:

• The recent decline in retail inflation is a positive sign for the Indian economy, offering the RBI room to support growth without the immediate threat of overheating. However, structural concerns remain. The persistence of core inflation and uneven impact across regions and income groups warrant careful monitoring.
• For long-term economic stability, it is crucial to maintain inflation within the target band while ensuring that monetary easing translates into inclusive growth, particularly in rural and lower-income segments.

UPSC Mains Practice Question

Ques :The recent moderation in retail inflation is largely driven by declining food prices, but core inflation remains persistent. Discuss the challenges this divergence poses to monetary policy formulation in India.

GS PAPER 2

Indian Polity

The Supreme Court has issued a landmark judgment cautioning parents about the growing menace of child trafficking. The case involved a plea against the bail granted by the Allahabad High Court to 13 accused involved in an inter-State child trafficking racket. The apex court took a stern view of the issue and passed multiple directives to address systemic gaps in dealing with trafficking cases.

Key Highlights of the Judgment:

• Warning to Parents:
  • The court highlighted that trafficking networks exploit minor lapses in parental vigilance.
  • Emphasis was placed on the trauma and enduring pain of parents whose children are trafficked, contrasting it with the grief of a child’s death, underscoring the psychological agony.
• Hospital Accountability:
  • The Supreme Court ordered that any hospital from which newborns go missing may face suspension of license and legal action.
  • The administration of healthcare institutions is made directly responsible for ensuring the security of newborns.
• Critique of State Machinery:
  • The Uttar Pradesh government was criticized for its lack of seriousness and failure to appeal the High Court’s lenient bail order.
  • The court noted the absconding of accused persons and a lack of effective police action.
• Direction to High Courts:
  • All High Courts were directed to expedite child trafficking cases and complete their trials within six months.
  • A call was made to treat these cases with urgency and sensitivity.
• Trafficking under the Guise of Adoption:
  • The court highlighted how delays in legal adoption processes are being exploited by trafficking networks to sell children under the guise of inter-country adoption.
  • Technology is being misused by traffickers for coordination, tracking victims, and financial transactions.
• Misuse of Juvenile Justice System:
  • Children are increasingly being trafficked for criminal activities due to leniency in the juvenile justice system.
  • The system intended for child protection is ironically being used as a shield for committing crimes.

Significance for Governance and Policy:

• Judicial Vigilance: The judgment reinforces the Supreme Court’s role as a guardian of child rights and underscores the judiciary’s proactive stance in addressing systemic failures in law enforcement.
• Strengthening Child Protection Framework: The observations call for immediate reforms in hospital protocols, inter-State policing coordination, and monitoring mechanisms in adoption processes.
• Federal Responsibility: The critique of the Uttar Pradesh government underlines the critical responsibility of States in tackling organized crimes like trafficking.
• Need for Policy Innovation: With criminal networks leveraging legal loopholes and systemic delays, there is an urgent need for faster adoption processes, stricter hospital security protocols, and use of technology by law enforcement.

Conclusion:

• This judgment serves as a wake-up call for all stakeholders—governments, hospitals, civil society, and the judiciary. It places the issue of child trafficking in the national spotlight and calls for multi-layered institutional reforms. The directive to conclude pending trials within six months sets a strong precedent and reiterates that justice delayed is justice denied, especially in the context of vulnerable children.

UPSC MainsPractice Question

Ques :The recent Supreme Court judgment on child trafficking reflects the proactive role of the judiciary in safeguarding vulnerable sections of society.Discuss the significance of judicial interventions in protecting child rights in India.

GS PAPER 3

Indian Polity

In a landmark verdict in State of Tamil Nadu vs. Governor of Tamil Nadu, the Supreme Court laid down critical guidelines interpreting Articles 200 and 201 of the Constitution concerning gubernatorial and presidential assent to Bills. Invoking Article 142, the Court fixed time limits for decision-making, rejected unfettered discretion of constitutional authorities, and reaffirmed democratic supremacy in the legislative process.

Key Takeaways from the Judgment:

• Assertion of Judicial Review:
  • The Court reaffirmed that governors and even the President are not beyond judicial scrutiny in the legislative process.
  • Discretion exercised without reasons or timelines is subject to judicial correction, especially when it blocks the will of elected legislatures.
• Time Limit on Assent Process:
  • A major lacuna in Articles 200 and 201 was the absence of any time limit for gubernatorial or presidential action on Bills.
  • The Court filled this constitutional vacuum by prescribing timelines using Article 142 – a power to ensure “complete justice.”
• Rejection of Arbitrary Withholding:
  • The judgment held that withholding assent without reasons is unconstitutional.
  • Any decision to refer, withhold, or return a Bill must be reasoned, ensuring accountability and transparency in constitutional functions.
• Doctrine of “Deemed Assent”:
  • By invoking Article 142, the Court hinted at the possibility of deemed assent, especially in cases of unjustified delay, to protect legislative supremacy.
• Use of Precedents and Commission Reports:
  • Relied on Sarkaria Commission (1988): Non-alignment with Union policy is not a valid ground to withhold assent.
  • Cited Shamsher Singh (1974) to establish that the Governor is bound by the advice of the State Cabinet.

Significance of the Judgment:

• Democratic Supremacy: The verdict strengthens popular sovereignty by asserting that elected legislatures cannot be undermined by appointed functionaries.
• Judicial Modernism: The Court’s organic and purposive interpretation goes beyond textual rigidity, showing flexibility to respond to constitutional exigencies.
• Federal Balance: The decision counters centralisation tendencies and reinforces the federal spirit, where States are not passive units but co-equal partners.

Criticisms Addressed:

• The Kerala Governor and critics claimed judicial overreach.
• The Court clarified it has not amended the Constitution, but interpreted it harmoniously to uphold democratic values.
• It emphasised that constitutional silence cannot be a tool for executive inaction.

Suggestions for Future Governance and Judicial Process:

• Brevity and Timeliness:
  • Judicial decisions, especially in constitutional matters, must be concise and prompt, as in the UK Supreme Court’s 2019 Brexit judgment.
• Efficient Case Management:
  • Similar cases (like Kerala’s plea) should be clubbed together for judicial consistency and administrative propriety.

Implications for Indian Polity:

• The verdict is a proclamation of democracy in the legislative process.
• It repositions the Governor as a constitutional figurehead, not an obstructive political tool.
• It sends a strong message against executive delay and inaction in matters of public policy and legislation.

Conclusion:

• This judgment marks a progressive constitutional milestone by redefining the boundaries of gubernatorial discretion and reinforcing institutional accountability. It reflects the judiciary’s proactive role in preserving democratic norms and preventing misuse of constitutional provisions for political convenience. In the broader context, it rejuvenates federalism, separation of powers, and constitutional morality—principles vital for India’s democratic evolution.

UPSC Mains Practice Question

Ques :”The Governor is a constitutional figure, not a political gatekeeper.”Critically examine the role of the Governor in the legislative process in light of the recent Supreme Court judgment on delay in granting assent to Bills.

GS PAPER 4 

Science and Technology

The regulation and governance of Artificial Intelligence (AI) have become globally significant due to AI’s transformative potential and risks. While many countries have either passed laws or drafted AI-specific legislations, India has yet to adopt a comprehensive legal or policy framework. This analysis explores India’s evolving approach, its challenges, and the way forward.

India’s Current Approach:

• Lack of Formal Legislation:
  • India does not yet have a dedicated AI regulation law or an officially approved National AI Strategy.
  • The 2018 NITI Aayog “National Strategy for Artificial Intelligence” remains an unendorsed recommendation with no binding implementation framework or allocated budget.
• Mission-Based Strategy:
  • The IndiaAI Mission, guided by seven pillars, aims to develop a trustworthy, safe, and inclusive AI ecosystem.
  • An expert advisory group is currently working on AI governance recommendations, though their formal adoption remains uncertain.
• Flexible but Fragmented:
  • While this approach allows India to remain adaptable in response to fast-changing tech landscapes and geopolitics, it lacks coherence, vision, and accountability.
  • Initiatives risk becoming reactive rather than strategic and may be heavily dependent on individual leadership rather than institutional frameworks.

Concerns and Challenges:

• Absence of Guardrails:
  • India currently has no binding AI usage regulations, leaving implementation decisions largely to private discretion.
  • There is minimal public awareness about how algorithms are used in critical areas such as healthcare, banking, education, or public service delivery.
• Social and Ethical Risks:
  • Unregulated AI systems can lead to bias, discrimination, exclusion, and even violence, particularly when used for surveillance or social media content manipulation.
  • India has already experienced social harms driven by AI-generated misinformation.
• Cybersecurity and Privacy Threats:
  • AI models using sensitive data raise concerns about data privacy and national security.
  • Though India enacted the Digital Personal Data Protection (DPDP) Act, 2023, it doesn’t specifically address AI-driven algorithmic decision-making.

Global Comparison and Lessons for India:

• European Union (EU): Introduced the AI Act, emphasizing ethics, transparency, and human rights.
• China: Enacted sector-specific AI laws, such as those for generative AI and deep synthesis content.
• United States: Follows a decentralized, sector-specific approach to AI and data regulation.
• India: Follows a mission- and advisory-based model without formal regulatory architecture.

India could consider a hybrid model, using the DPDP Act as a foundation while gradually introducing specific AI governance mechanisms.

Way Forward:

• Draft and Adopt a National AI Policy:
  • Define India’s vision for AI, ethical standards, and sectors of priority (healthcare, education, agriculture, etc.).
  • Identify the nodal agency responsible for AI governance.
• Public Awareness and Stakeholder Engagement:
  • Promote civic discourse on algorithmic use, biases, and AI’s impact on rights and society.
  • Include academia, industry, and civil society in the policy-making process.
• Pilot Enforcement Tools:
  • Before enacting binding legislation, test governance mechanisms, including algorithm audits and accountability frameworks.
• Capacity and Infrastructure Building:
  • Invest in R&D, digital infrastructure, skilling, and regulatory training for effective enforcement and oversight.

Conclusion:

• India stands at a crossroads where it must balance AI-driven innovation with regulation that safeguards public interest, privacy, and ethics. While flexibility has served India’s digital policy-making in the short term, the lack of formal strategy and oversight can no longer be ignored. A comprehensive national AI policy, followed by appropriate legislation, is crucial for responsible AI governance aligned with India’s democratic and developmental goals.

UPSC Mains Practice Question

Ques :India must strike a balance between promoting innovation in Artificial Intelligence and protecting citizen rights. Discuss the need for a comprehensive national policy on AI in the context of rising privacy concerns, cybersecurity threats, and socio-ethical implications.(250 words)

 In News :  Cheetah Relocation from Kuno to Gandhi Sagar

Recently, the Cheetah Project Steering Committee officially approved the relocation of some cheetahs from Kuno National Park to Gandhi Sagar Wildlife Sanctuary in Madhya Pradesh.

About Cheetah Relocation from Kuno to Gandhi Sagar

• The Cheetah Project Steering Committee was set up in May 2023 by the National Tiger Conservation Authority (NTCA) to review, monitor, and advise on the cheetah reintroduction program.
• Project Cheetah began in 2022 with the translocation of 8 cheetahs from Namibia and 12 from South Africa to Kuno National Park. Still, the project has faced setbacks, with 8 adult cheetahs and 5 cubs dying so far.
• Gandhi Sagar Wildlife Sanctuary has been identified as a key part of establishing a cheetah meta-population of 60–70 individuals across the Kuno–Gandhi Sagar landscape, which stretches across Madhya Pradesh and Rajasthan.
• As of now, there are 26 cheetahs at Kuno, of which 17 are in the wild and 9 are still inside large enclosures. It is yet to be decided whether the relocated cheetahs will come from the wild or enclosures.
• According to forest officials, prey species at Gandhi Sagar currently include chinkara, chousingha, nilgai, and chital.

About Cheetahs

• Cheetahs breed year-round, with peak breeding during the rainy season. Females reach sexual maturity between 20–24 months, while males mature later, at 24–30 months.
• The gestation period of a cheetah is approximately 90–95 days, and they typically give birth to 3–5 cubs.
• Cheetahs do not roar like other big cats; instead, they communicate using high-pitched chirps, barks, and stutter barks to establish presence or territory.
• They are solitary animals and use urine sprays, cheek rubbing, and scratch marks on trees to mark territory.
• Cheetahs are the fastest land animals, capable of reaching speeds up to 120 km/h and can accelerate from 0 to 100 km/h in just 3 seconds.
• During hunting, they employ a unique tripping technique using their semi-retractable claws to destabilise prey, though their hunting success rate is only 40–50%.

Protection Status of Cheetahs

• Cheetahs are listed as Vulnerable on the IUCN Red List.
• They are protected under Schedule II of the Wild Life (Protection) Act, 1972.
• They are also included in Appendix I of the Convention on International Trade in Endangered Species (CITES), offering the highest level of protection from international trade.

 UPSC PrelimsPractice Question

Ques :With reference to the Cheetah Reintroduction Project in India, consider the following statements:

1. Project Cheetah was launched in 2022 with cheetahs relocated from Kenya and South Africa.
2. The Gandhi Sagar Wildlife Sanctuary is being developed as part of a landscape to support a meta-population of cheetahs.
3. The Cheetah Project Steering Committee was constituted under the Wildlife Institute of India (WII).

Which of the statements given above is/are correct?

(A) 1 only

(B) 2 only

(C) 2 and 3 only

(D) 1 and 3 only

Ans : b)

GS PAPER 5

Editorial Analysis

Context :

• India’s journey towards achieving net-zero emissions by 2070 involves massive electrification of energy use and the deployment of low-carbon technologies. A significant focus is now placed on nuclear energy expansion and green/low-carbon hydrogen production as alternatives to fossil fuels in both power generation and industrial applications.

Key Highlights:

• Net-Zero and Electrification:
  • Moving toward a net-zero economy requires electrification of industries currently dependent on fossil fuels — especially steel, fertilizer, and chemical industries.
  • Hydrogen (particularly green/low-carbon hydrogen) is a key substitute molecule in industrial processes.
• India’s Rising Power Demand:
  • To meet projected electricity demand in a developed, net-zero India, solar, wind, hydro, and nuclear must all play vital roles.
  • Nuclear energy has been identified as a reliable baseload power source to complement intermittent renewables.
• India’s Nuclear Ambitions:
  • Target of 100 GW nuclear installed capacity by 2047.
  • Expansion of 700 MW Pressurized Heavy Water Reactors (PHWRs) and 220 MW Bharat Small Reactors (BSRs) for industrial and captive use.
  • Public Sector Undertakings (PSUs) like Indian Railways exploring deployment of nuclear-powered infrastructure.

Hydrogen Production and Grid Stability:

• Flexibility Challenge:
  • Nuclear plants are not cost-effective to flex due to high capital costs and near-constant variable costs.
  • Flexing solar and wind with current technology involves curtailment or expensive battery storage.
• Hydrogen as a Grid Balancer:
  • Surplus electricity during solar/wind peaks can be used to run electrolysers, generating hydrogen for industrial use rather than storage for electricity reconversion.
  • Electrolysers are mature, cost-effective and can operate at varied loads, acting as demand shapers.
• Policy Need: Low-Carbon Hydrogen:
  • Current definition of green hydrogen excludes nuclear-based production.
  • Proposal: Broaden definition to low-carbon hydrogen (with <2kg CO₂/kg H₂) to include nuclear-based hydrogen and enable better integration and incentives.

Policy Implications:

• Synergy Between Hydrogen and Storage:
  • Hydrogen production and electricity storage should not be seen in silos.
  • Integrated planning of hydrogen and battery storage can improve grid economics and reliability.
• Need for Taxonomy Change:
  • From “green hydrogen” to “low-carbon hydrogen”, enabling inclusion of nuclear-based hydrogen, recognizing its life-cycle emissions parity with renewables.
• Industrial Decarbonisation:
  • Hydrogen can decarbonise hard-to-abate sectors like steel and fertilizer.
  • Electrification and hydrogen use can reduce fossil fuel dependency and align with energy security goals.

Challenges and Way Forward:

• Economic Viability: Scaling up nuclear and hydrogen infrastructure requires massive investment and financing models.
• Policy Integration: Hydrogen and storage policy must be integrated under a unified clean energy roadmap.
• Public Acceptance and Safety: Especially in nuclear, issues of safety, waste management, and public perception need addressing.
• Technology and Skill Development: Indigenous manufacturing and R&D in electrolyser and reactor tech must be prioritized.

Conclusion:

• The convergence of rising power demand, nuclear energy expansion, and hydrogen production offers India a strategic pathway to a low-carbon economy. The integration of electrolysers with nuclear and renewable sources, coupled with appropriate policy reforms, can make India’s energy transition not just green but also economically viable and technologically resilient. A low-carbon hydrogen taxonomy and synergy between storage and hydrogen are critical to realizing this vision.