08 April | Daily Current Affairs : Indian, global shares slide amid trade war fears And More

GS PAPER 1

International Relations & Indian Economy

Global stock markets witnessed sharp declines on April 7, 2025, following renewed trade tensions between the United States and China. The Indian equity markets mirrored the global sentiment, registering significant intraday losses.

Key Highlights:

  • Market Reaction:
    • Indian indices opened 5% lower but recovered slightly by the end of the day. The BSE Sensex closed nearly 3% down; NSE Nifty dropped 3.24%.
    • Tata Steel (-7.73%), L&T (-5.78%), and Tata Motors (-5.54%) were among the top losers.
    • Midcap and small-cap indices underperformed compared to bluechip stocks.
  • Global Impact:
    • Japan’s Nikkei 225 fell nearly 8.8%, Hong Kong’s Hang Seng declined 13.22%, and China’s Shanghai Composite dropped 7.34%.
    • The KOSPI (South Korea) fell to a 17-month low.
    • In the U.S., the NASDAQ and Dow Jones slipped as well, amid early conflicting signals from the White House.
  • Trigger:
    • S. President Trump threatened 50% additional tariffs on Chinese imports if China proceeded with its 34% tariff hike.
    • A false media report about a possible 90-day tariff pause initially calmed markets before being denied by the White House.

Analytical Perspective:

Economic Implications:

  • Impact on Indian Economy:
    • The market crash reflects India’s integration with global financial systems.
    • Uncertainty in global trade can affect exports, foreign investment, and rupee stability.
    • Import-dependent sectors may face supply chain disruptions and input cost pressures.
  • Investor Sentiment:
    • The episode reveals the vulnerability of emerging markets to external geopolitical shocks.
    • Possibility of capital flight from equity markets to safer assets like gold and government securities.
  • Recession Concerns:
    • A prolonged trade war between the world’s two largest economies may push the global economy toward a recession.
    • Demand contraction could follow due to reduced consumer and business confidence.

International Relations Angle:

  • Geopolitical Realignment:
    • The U.S.’s aggressive posturing may push China closer to other economic blocs like BRICS or RCEP.
    • Other nations, including India, may leverage the situation to reorient trade partnerships.
  • Opportunity for India:
    • India could emerge as a neutral trading partner and attract investment diversion from China.
    • However, it must manage its own vulnerabilities and enhance its trade competitiveness.

Way Forward:

  • India needs to strengthen its economic fundamentals and boost investor confidence through structural reforms.
  • Enhancing domestic manufacturing, diversifying export markets, and ensuring macroeconomic stability are essential.
  • At the diplomatic level, India should engage in multi-lateral platforms to promote rule-based trade and prevent unilateralism.

Conclusion:

  • The recent market crash is a stark reminder of how geo-economic tensions can ripple across global markets. For India, the crisis presents both a challenge and an opportunity to recalibrate its trade, economic, and strategic posture in a volatile world order.

UPSC Mains Practice Question

Ques :“The renewed US-China trade tensions and subsequent global market volatility highlight the fragility of global economic interdependence. In this context, critically examine the implications for the Indian economy and suggest policy measures to safeguard against such external shocks.” (250 words)

GS PAPER 2

Indian Polity

The article by P.D.T. Achary addresses the politically sensitive and constitutionally significant issue of readjustment of Lok Sabha seats based on post-2026 Census data, emphasizing the challenge of ensuring equity among States, especially between northern and southern India.

Key Constitutional Provisions:

  • Article 81: Deals with the composition of the Lok Sabha and specifies that the ratio between the number of seats and population in each State shall be the same.
  • Article 82: Mandates the readjustment of seats in Lok Sabha after every decennial Census, through a Delimitation Commission.
  • 42nd Amendment (1976) & 84th Amendment (2001): Froze the number of Lok Sabha seats till the first Census after 2026 (i.e., 2031), to incentivize States’ compliance with population control policies.

Current Scenario:

  • Lok Sabha seats are still based on the 1971 Census (population: 54.8 crore).
  • India’s estimated population in 2025 is around 141 crore.
  • Population growth disparity: Southern States like Kerala and Tamil Nadu have shown successful population control, while northern States like Uttar Pradesh and Bihar have seen significant increases.
  • Example:
    • UP: From 8.38 crore (1971) to 24.1 crore (2025)
    • Kerala: From 2.14 crore to 3.6 crore

Concerns Raised:

  • Disproportionate Political Power: States with higher population growth (mostly in the North) would get more seats, potentially marginalizing southern States politically.
  • Equity vs Equality Dilemma: Article 81’s mandate for equal population-seat ratio may be unfair in light of differing development and demographic achievements.
  • Fear of “Rewarding Incompetence”: States that failed in population control might get greater representation, which goes against the spirit of cooperative federalism.

Proposed Formula (Kerala Template):

  • Use Kerala’s population growth rate (68%) as the benchmark.
  • Apply a uniform 68% increase in seats for all States.
    • UP: From 80 – 134 seats (instead of 240 under population-based formula)
    • Tamil Nadu: – 66 seats
    • Kerala: -34 seats
    • Total Lok Sabha strength would increase to 912.
  • Ensures balance of power while acknowledging population control efforts.

Arguments in Favor:

  • Promotes federal equity, as envisioned in Article 1 (“Union of States”).
  • Upholds incentivization of good governance (population control).
  • Avoids a North-South political divide and potential alienation of southern States.

Counterarguments & Challenges:

  • Goes against the literal interpretation of Article 81.
  • May be perceived as undemocratic, as it dilutes representation based on population.
  • Might require a constitutional amendment, leading to political resistance.

Way Forward:

  • National Consensus: A political dialogue involving all States to ensure consensus on a fair and sustainable model.
  • Amend Article 81 if necessary, to reflect the new demographic and governance realities.
  • Ensure that Delimitation Commission works transparently and equitably.
  • Recognize that representation is not just about numbers, but also about ensuring balanced regional development and unity.

UPSC Mains Practice Question

Ques :“The readjustment of Lok Sabha seats based solely on population would undermine the spirit of cooperative federalism.” Discuss in light of the concerns raised by southern States. (250 words)

GS PAPER 3

Prelims Fact

The article by Adhip Agarwala explains the working of mirrors from the perspective of material science and physics, highlighting how electrons interact with light, and introduces the concept of topological materials, which has significant relevance in cutting-edge technologies like quantum computing.

Understanding the Mirror – A Composite Structure

  • Everyday Observation: A mirror reflects light, allowing us to see ourselves. But unlike transparent glass, a mirror always gives a reflection.
  • Composition: A typical mirror is made of two parts:
    • Front Layer: Glass (an insulator) that allows light to pass.
    • Back Layer: A thin metallic coating (commonly silver or aluminium) that reflects the light back due to free electrons on the surface.

Science Behind Reflection: Light-Electron Interaction

  • Light as an Electromagnetic Wave: It exerts forces on electrons.
  • Electrons in Metals vs Insulators:
    • Metals: Electrons are delocalized and move freely, allowing them to collectively respond to light and reflect it—strong reflection.
    • Insulators: Electrons are tightly bound to atoms, absorbing or allowing light to pass through—transparency.
    • Reflection Mechanism: In mirrors, light passes through the glass, hits the metal layer, and is reflected back to your eyes, forming a clear image.

Topological Materials – The Next Frontier

  • Definition: Materials that behave like metals on the surface and insulators inside.
  • Properties:
    • Conduct electricity only at the surface.
    • Exhibit exotic electron behaviors governed by quantum mechanics.
  • Applications:
    • Quantum Computing: Microsoft’s quantum chip uses topological materials.
    • Spintronics, low-energy electronics, and fault-tolerant quantum systems.
    • Recognition: Nobel Prize in Physics 2016 was awarded to scientists studying topological phases of matter.

Conclusion

  • This article beautifully connects a daily-life object (mirror) with advanced material science and quantum physics, making it an excellent example of how basic science underpins future technologies.

UPSC Prelims Practice Question

Ques :Which of the following correctly explains why metals reflect light effectively?

  1. Metals have tightly bound electrons that absorb light energy.
  2. Metals have free electrons that oscillate collectively when light falls on them.
  3. Metals are transparent to electromagnetic radiation.
  4. Metals contain only protons which repel light waves.

Ans : B)

GS PAPER 4

Prelims fact

On the 80th anniversary of the Battle of Iwo Jima (1945), Japanese Emperor Naruhito and Empress Masako made a rare visit to the island to honor the war dead. This symbolic gesture underscores Japan’s continued efforts at wartime remembrance and reconciliation.

Geographical and Historical Significance of Iwo Jima:

  • Location: Volcanic island – 1,250 km south of Tokyo, part of the Ogasawara Islands.
  • Historical Event:
    • Battle of Iwo Jima (Feb–Mar 1945) during World War II between Japan and the U.S.
    • One of the bloodiest battles in the Pacific theatre.
  • Casualties:
    • Japan: ~21,000 soldiers killed.
    • S.: ~6,800 dead, 19,000 wounded.
    • Iconic image: U.S. Marines raising the flag on Mount Suribachi – became a powerful symbol of American victory and resolve.

Symbolism and Diplomacy:

  • Royal Visit:
    • First visit to Iwo Jima by Emperor Naruhito; second by any Japanese Emperor (after his father in 1994).
    • Rituals: Offering flowers and water in rain – sign of deep mourning and respect.
  • Soft Diplomacy:
    • Reinforces Japan’s pacifist stance under Article 9 of its Constitution.
    • Serves as a reminder of the cost of war and the importance of peace, particularly in current global contexts of military conflicts.
  • International Engagement:
    • Previous joint visit by Japan’s PM and U.S. Defense Secretary indicates continuing efforts for bilateral reconciliation and shared historical acknowledgement.

Key Takeaways:

  • Remembrance Diplomacy: Honoring the dead is a tool for both internal reflection and external reconciliation.
  • Soft Power Projection: Japan continues to shape its international identity as a peaceful and responsible global actor.
  • War and Memory: Preserving the memory of tragedies like Iwo Jima is crucial to avoid repeating past mistakes.

UPSC Prelims Practice Question

Ques : The island of Iwo Jima, recently seen in the news, is associated with which of the following events?

  1. A major naval battle during World War I
  2. The atomic bombing of Japan
  3. A key battle in the Pacific theater during World War II
  4. Japan’s surrender to the Allied Forces.

Ans : C)

In News :  Mount Kanlaon

A dramatic eruption of Mount Kanlaon, one of the Philippines’ most active volcanoes, sent a towering ash plume 4,000 meters (2.5 miles) into the sky recently.

About Mount Kanlaon

  • It is a stratovolcano in the north-central part of the island of Negros., Philippines.
  • It is the highest mountain on the island of Negros and the 42nd tallest peak on an island in the world.
  • It is one of the active volcanoes in the Philippines and part of the Pacific Ring of Fire.
  • The volcano comprises a number of pyroclastic cones and craters.
  • The summit of Canlaon contains a broad, elongated northern caldera with a crater lake and a smaller, but higher, historically active crater to the south.
  • The base of Kanlaon covers an area of 30 km x 14 km.
  • It is underlain by tropical volcanic materials composed of sheeted lava flows, lahar deposits, airfall tephra, and apron pyroclastic materials.
  • It is biologically diverse; and home to a number of species of flora and fauna.
  • The slopes are also headwater catchments of major river systems on the entire Negros Island.
  • Historical eruptions, recorded since 1866, have typically consisted of phreatic explosions of small-to-moderate size that produce minor ashfalls near the volcano.

UPSC Prelims Practice Question

Ques :Consider the following statements regarding Mount Kanlaon:

1.It is located on the island of Mindanao in the Philippines.

  1. It is part of the Pacific Ring of Fire.

3.It is known for frequent phreatic eruptions.

Which of the statements given above is/are correct?

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Ans : b)

GS PAPER 5

Editorial Analysis

Context :

  • The article by P. John J. Kennedy examines India’s workforce preparedness in light of the World Economic Forum’s Future of Jobs Report (2025) and the QS World Future Skills Index. It highlights India’s opportunities and challenges in aligning its education system and skill development with the rapidly evolving global job market.

Key Insights:

  1. Drivers of Global Labour Market Transformation:
  • Technological Advancements & Digital Access – Cited by 60% of employers as major future job market drivers.
  • Economic Uncertainties & Job Displacement – 50% of employers expect economic pressures to impact employment structures.
  • Green Transition & Climate Change – Acts both as a job creator (renewables, sustainability) and disruptor (new business models).
  • Projected Trends:
    • 170 million jobs to be created globally.
    • 92 million jobs may become obsolete due to automation and structural changes.
  1. Workforce Readiness Gaps in India:
  • High Future-Focus, Low Skills Fit:
    • India scores 99.1 in the ‘Future of Work’ parameter.
    • But scores only 59.1 in ‘Skills Fit’, indicating a gap between market demands and available skills.
  • Innovation & Sustainability Lag:
    • Alarmingly low score (15.6/100) in future-oriented innovation and sustainability.
    • India ranks only 26th in ‘Academic Readiness’.
    • Low R&D investment is a critical limiting factor.

Implications for India:

  1. Economic & Employment Dimensions (GS Paper III):
  • Employability Crisis: Large youth population, yet lacking job-ready skills.
  • Risk of Demographic Dividend turning into Liability: If workforce training doesn’t match demand.
  • Green Economy Challenge: Need to skill workers in renewable energy, climate adaptation, etc.
  • Opportunity in AI and Digital Economy: India is well-placed but must scale quality training.
  1. Educational Reforms & Governance (GS Paper II):
  • Curriculum Innovation:
    • Promote interdisciplinary and experiential learning.
    • Integrate entrepreneurship, problem-solving, design thinking, and green skills.
  • Collaboration with Industry:
    • Co-create curricula with industry.
    • Expand internships, hackathons, and skill incubators.
  • Faculty Development:
    • Introduce global exchange, certifications, and training to upskill educators.
  • Infrastructure & Equity:
    • Focus on digital inclusion in rural/semi-urban areas.
    • Reduce the urban-rural divide in education quality and access.

Way Forward:

  • Government’s Role:
    • Increase investment in skill development, research, and digital infrastructure.
    • Create an enabling policy ecosystem to support education-industry linkages.
    • Ensure NEP 2020 implementation with focus on multidisciplinary education.
  • University & Institutional Reforms:
    • Establish centres for sustainability, green tech courses, and community-based innovations.
    • Embed soft skills such as emotional intelligence, leadership, and adaptability.

Conclusion:

India stands at a critical juncture. While it possesses the potential to be a global skill hub, systemic gaps in educational quality, innovation, and sustainability preparedness threaten this possibility. A coordinated effort between the government, academia, and industry is essential to ensure that India’s demographic advantage translates into a productive and future-ready workforce.

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