1. Trump Threatens 100% Tariffs on BRICS Over Dollar Replacement Plans

Context: Recently, former U.S. President Donald Trump issued a stern warning to the BRICS nations (Brazil, Russia, India, China, South Africa), threatening to impose 100% tariffs if they proceed with plans to replace the US dollar as the global reserve currency. His statement underscores the geopolitical tensions surrounding moves to de-dollarize the global economy.

Why the Push to Replace the US Dollar?

1. Weaponization of the Dollar

• The U.S. has increasingly leveraged its financial dominance as a geopolitical tool, imposing sanctions and restricting countries like Iran and Russia from systems like SWIFT (Society for Worldwide Interbank Financial Telecommunication).
• This raises fears that the dollar is being used as a weapon against sovereign nations.

2. Reducing US Dependency

• The US dollar dominates global currency markets, accounting for 88% of forex turnover (BIS 2022).
• Over-reliance on the dollar makes nations vulnerable to US monetary policies, which primarily benefit the American economy but can destabilize other economies, especially when interest rates rise.

3. Ensuring Economic Sovereignty

• Nations seek to shield their economies from dollar-induced fluctuations and US political pressure by exploring alternatives.

4. Enhancing Trade Efficiency

• Local currencies and alternatives like China’s yuan or regional payment systems reduce transaction costs and bypass the dollar.

5. Multipolar Financial Order

• With the rise of China, India, and Brazil, emerging economies advocate for a decentralized financial system reflecting today’s multipolar world.

6. US Debt and Inflation Concerns

• Growing US debt and inflationary pressures undermine confidence in the dollar’s long-term stability.

7. Lessons from China-Russia Trade

• Over 90% of their $240 billion bilateral trade in 2023 was conducted in roubles and yuan, demonstrating the benefits of bypassing the dollar.

India’s Push for Rupee Internationalization

What Is Rupee Internationalization?

• It involves increasing the use of the Indian Rupee (INR) in cross-border transactions and making it a widely accepted currency for global trade and investments.

Steps Taken by India:

• In July 2022, the RBI introduced mechanisms for settling international trade in rupees.
• By December 2022, India executed its first trade settlement in rupees with Russia.
• Banks from over 19 countries, including Germany, UAE, and Malaysia, now settle transactions in INR.

Challenges:

• The rupee constitutes only 1.6% of global forex turnover, far below the 4% needed to be recognized as an international currency.
• Trade imbalance with Russia leads to excess rupee reserves being underutilized, forcing Russia to invest them in Indian stocks and bonds.

Trump’s Threat: Risks and Implications

What Could Happen?

• Imposing 100% tariffs on BRICS nations might backfire by shifting imports to third countries, increasing costs for American consumers without boosting U.S. manufacturing.
• The U.S. remains less competitive in labour-intensive goods due to higher domestic production costs, making tariffs an ineffective strategy.

India’s Strategic Balancing Act:

Diplomatic Engagement

India must clarify to the U.S. that its diversification of trade mechanisms ensures financial stability and is not intended as a hostile move against the dollar.

Leadership in BRICS

To safeguard its interests, India should:

• Promote the internationalization of its digital currency (CBDC).
• Expand platforms like UPI for cross-border transactions.
• Ensure BRICS initiatives do not disproportionately favor China, given its economic dominance.

Conclusion

The US dollar continues to dominate global finance, but the push for diversification signals a shift toward a more decentralized system. For India, the key lies in maintaining a balance between its BRICS commitments and its strategic ties with the U.S., ensuring a fair and multipolar financial framework.

2. 40 Years of Bhopal Gas Tragedy: Reflecting on India’s Preparedness

Context: Four decades after the catastrophic Bhopal Gas Tragedy, the legacy of environmental and public health challenges persists. Toxic waste from the Union Carbide India Limited (UCIL) site continues to contaminate soil and water, causing long-term ecological and human health damage.

Lingering Challenges:

India’s Expanding Chemical Industry:

• Despite the lessons from 1984, India’s chemical sector has grown to become the sixth largest in the world.
• From 2020 to 2023, the country witnessed 29 major chemical accidents, including high-profile incidents like the Vizag Gas Leak (2020) and the Ammonia Gas Leak in Chennai (2024), leading to significant loss of life and property.

Toxic Chemicals in Use:

• Methyl Isocyanate (MIC), the gas responsible for the Bhopal disaster, is still in use across India.
• MIC’s toxicity makes even brief exposure hazardous, causing respiratory distress, skin damage, and long-term health issues.
• Unregulated agricultural chemicals like DDT continue to threaten human health and environmental safety.

Fragmented Regulations:

• India’s chemical safety framework is fragmented, lacking the robustness of international laws like the US Toxic Substances Control Act (TSCA) or the EU’s REACH regulation.

Reasons Behind Persistent Disasters:

1. Focus on Economic Growth: The push for rapid industrialization often comes at the cost of safety standards and environmental safeguards.
2. Weak Regulatory Oversight: Insufficient resources, technical expertise, and political will hinder enforcement of existing safety laws.
3. Industry Influence:  Powerful lobbying groups resist stricter regulations, prioritizing profits over public safety.
4. Public Awareness Gap: Limited understanding of chemical hazards reduces public pressure on industries and policymakers to prioritize safety measures.

Steps Taken to Prevent Future Disasters:

1. Strengthened Legal Framework: India has implemented laws like the Explosives Act (1884), Chemical Accidents (Emergency Planning, Preparedness, and Response) Rules (1996), and the Environment Protection Act (1986) to regulate hazardous industries.
2. National Green Tribunal (NGT): The NGT provides a platform for addressing environmental violations, including industrial accidents, and ensuring accountability.
3. NDMA Guidelines: The National Disaster Management Authority emphasizes inspection systems, emergency preparedness, and community awareness programs to mitigate risks.

The Way Ahead:

1. Comprehensive Chemical Policy: India urgently needs a unified chemical policy that aligns with international standards, ensuring safe handling and storage of hazardous substances.
2. Corporate Accountability: Industries must adopt stringent safety protocols, invest in risk management, and comply with environmental standards.
3. Victim Rehabilitation: Long-term healthcare, compensation, and livelihood support for affected communities are critical to addressing the human cost of industrial disasters.
4. Environmental Safeguards: Toxic waste must be safely disposed of to prevent lasting damage to ecosystems.

Conclusion:

Forty years after the Bhopal Gas Tragedy, the need for stronger regulations, corporate responsibility, and community awareness remains urgent. By addressing systemic issues, India can ensure a safer future, protecting both its people and its environment from the devastating impact of industrial accidents.

3. Pro-Active Governance and Timely Implementation (PRAGATI)

Context: The Pro-Active Governance and Timely Implementation (PRAGATI) platform has emerged as a revolutionary tool for improving the delivery of infrastructure projects in India. Recently, a report by Oxford University’s Saïd Business School and the Gates Foundation highlighted PRAGATI’s significant impact on governance and project implementation.

What is the PRAGATI Platform?

A Multi-Modal Solution:

PRAGATI is a multi-purpose and multi-modal platform designed to address the grievances of the common man while monitoring and reviewing major government programmes and projects, including those flagged by state governments.

Core Objectives:

• Promote e-transparency and e-accountability.
• Enable real-time interaction and exchange of information among key stakeholders.
• Strengthen cooperative federalism by involving both Central and State officials in decision-making.

Launch and Development:

• Introduced on March 25, 2015, PRAGATI was developed in-house by the PMO team with support from the National Informatics Center (NIC).
• It leverages cutting-edge technologies like digital data management, video conferencing, and geospatial technology.

Key Features of PRAGATI:

1. Three-Tier System:

PRAGATI operates as a three-tier structure involving:

• The Prime Minister’s Office (PMO).
• Secretaries of the Government of India.
• Chief Secretaries of the States.

2. Monthly PRAGATI Day:

• The Prime Minister conducts a review session on the fourth Wednesday of every month, termed as PRAGATI Day.
• Issues from public grievances, ongoing programmes, and pending projects are discussed using live data and visuals.

3. Robust Integration:

• PRAGATI integrates with existing systems like:
  • CPGRAMS for public grievances.
  • Project Monitoring Group (PMG) for project tracking.
  • Ministry of Statistics and Programme Implementation databases.

4. Streamlined Workflow:

• Issues are uploaded seven days prior to PRAGATI Day for review by the relevant officials.
• Union Government Secretaries and Chief Secretaries provide updates within three days, ensuring the PM has the latest insights.

1. Issue Identification: Grievances and pending projects are flagged from various databases, correspondence, and public feedback.
2. Data Review: Officials upload updates and visuals to the system by Monday preceding the review.
3. Final Preparations: On Tuesday, the PMO team reviews all inputs, ensuring the Prime Minister has a clear picture of each flagged issue.
4. PM Interaction: The PM conducts live video discussions with Central and State officials, reviewing projects and grievances with comprehensive data and geospatial visuals.

Unique Features:

• Real-Time Monitoring: Allows dynamic oversight of projects.
• Transparency: Enhances public confidence through e-accountability.
• Cooperative Federalism: Strengthens coordination between Central and State governments.

Conclusion:The PRAGATI platform represents a paradigm shift in governance, blending technology with leadership to address issues proactively and effectively. By fostering collaboration, transparency, and timely implementation, PRAGATI continues to set benchmarks for modern governance in India.

4. Asia-Oceania Meteorological Satellite Users’ Conference (AOMSUC)

5. India’s Fight Against HIV: A Remarkable Journey of Progress and Hope

Context: On World AIDS Day, the Union Health Minister emphasized India’s notable success in combating the HIV epidemic, showcasing significant declines in new infections and AIDS-related deaths. These achievements highlight the nation’s commitment to prevention, treatment, and awareness campaigns.

Understanding HIV and AIDS:

What is HIV?

Human Immunodeficiency Virus (HIV) is a lentivirus, a subtype of retrovirus, responsible for HIV infection. If untreated, it progresses to Acquired Immunodeficiency Syndrome (AIDS), a life-threatening condition marked by immune system failure.

Types of HIV:

1. HIV-1:
   • The most prevalent type globally.
   • Divided into four groups: M (Major), N, O (Outlier), and P.
   • Group M accounts for 90% of cases worldwide.
2. HIV-2:
   • Found mainly in West Africa but also in India and Europe.
   • Originates from the simian immunodeficiency virus in monkeys.
   • Categorized into eight groups (A to H).

Transmission:

HIV spreads through blood, breast milk, vaginal fluids, semen, or pre-ejaculate. It exists as free particles or within infected immune cells in bodily fluids.

Without Treatment:

The survival period for someone with HIV is 9 to 11 years, depending on the subtype.

India’s Approach to HIV Treatment:

Antiretroviral Therapy (ART):

• ART involves a combination of drugs to manage HIV infections.
• Key Benefits:
  • Suppresses HIV replication and reduces the viral load.
  • Strengthens the immune system and improves the quality of life.
  • Reduces the risk of transmission and prevents progression to AIDS.
  • Enables viral load suppression, making HIV undetectable in the bloodstream.

India’s Free ART Program:

Under the National AIDS Control Program (NACP):

• Over 680 ART centres and 1,200 Link ART centres are operational.
• As of 2024, 88% of identified HIV-positive individuals are on ART.
• Led to a 79% decline in AIDS-related deaths since 2010.

TLD (Tenofovir Disoproxil Fumarate, Lamivudine, Dolutegravir):

A single-pill antiretroviral treatment used as the first line of defence against HIV.

Innovative HIV Drug: Lenacapavir:

• Lenacapavir, a twice-yearly injectable drug, has demonstrated 100% effectiveness in preventing HIV infections in a recent study.
• Developed by Gilead, it is sold under the brand name Sunlenca for treating HIV in the US, Canada, Europe, and other regions.
• Plans are underway to secure authorization for its use in HIV prevention.

Challenges of Global Access:

• Generic versions are limited to 120 poorer countries, excluding most of Latin America, where HIV rates are rising.
• Advocacy groups stress the importance of equitable access, especially for marginalized populations like sex workers and young women.

India’s Achievements in HIV Management:

• Steady decline in new HIV infections.
• Proactive measures in awareness and treatment programs.
• Leveraging innovative therapies and strengthening healthcare systems.

The Road Ahead:

• Expand access to groundbreaking treatments like lenacapavir.
• Enhance healthcare equity to ensure no region is left behind.
• Strengthen global collaborations to fight HIV on a united front.

India’s success story in combating HIV stands as a testament to the power of dedicated public health initiatives and community engagement. By building on these achievements, the nation continues to pave the way toward a future free of HIV and AIDS.

6. Coastal Shipping Bill, 2024: A New Era for India’s Maritime Trade

Context: The Coastal Shipping Bill, 2024, recently introduced in the Lok Sabha, aims to consolidate and amend the laws governing coastal shipping in India. This comprehensive legislation is designed to standardize regulations, boost domestic participation, and enhance connectivity in the coastal trade sector. The bill is a vital step in unlocking the vast potential of coastal shipping in India, given the country’s extensive coastline of approximately 7,500 km and its strategic location along key global shipping routes.

Key Highlights of the Coastal Shipping Bill, 2024:

1. Prohibition of Unlicensed Coastal Trade: The bill mandates the prohibition of trade in coastal waters by foreign vessels unless they hold a valid license issued by Indian authorities.
2. Inclusion of Inland Vessels: The legislation permits inland vessels to engage in coastal trading, thereby expanding the scope of domestic shipping operations.
3. National Coastal and Inland Shipping Strategic Plan: The bill calls for the creation of a National Strategic Plan aimed at the development and promotion of coastal shipping, ensuring sustainable growth for the sector.
4. National Database for Coastal Shipping: A National Database will be established to ensure transparency in coastal shipping procedures and improve information sharing across stakeholders.
5. Licensing and Regulation of Chartered Vessels
   • The Director-General will be empowered to issue licenses for chartered vessels, considering critical factors like citizenship of crew and vessel construction requirements.
   • Fair hearing provisions will ensure that no license is suspended or revoked without a reasonable opportunity for defense.
6. Offenses and Penalties
   • Provisions for the compounding of certain offenses and the imposition of penalties by the principal officer have been included.
   • The Director-General will also have the authority to call for specific information in relation to certain shipping matters.

Coastal Shipping Industry in India:

Coastal shipping refers to the movement of goods and passengers along the Indian coastline, within territorial waters extending up to 12 nautical miles from the baseline. The industry plays a crucial role in facilitating trade, reducing congestion on roads and railways, and contributing to economic growth.

Regulation of Coastal Shipping in India

• The Directorate General of Shipping, under the Ministry of Ports, Shipping, and Waterways, is the primary authority overseeing coastal shipping regulations in India.
• The Coastal Regulation Zone (CRZ) regulations govern activities in coastal areas, ensuring environmental protection while allowing for maritime operations.
• India’s cabotage policy limits the operations of foreign-flagged vessels for the transport of goods within the country’s territorial waters, promoting the growth of the domestic shipping industry.
• Tariffs and charges related to major ports are regulated by the Tariff Authority for Major Ports (TAMP), which ensures fair pricing for services involved in coastal shipping.

Looking Ahead: Impact of the Coastal Shipping Bill, 2024:

With the introduction of the Coastal Shipping Bill, India is poised to enhance the efficiency and sustainability of its maritime trade, ultimately driving economic growth. By fostering domestic participation, enhancing infrastructure, and promoting transparency, the bill will shape the future of coastal shipping in India, ensuring the sector plays a pivotal role in the nation’s global trade network.