1. RBI’s Strategy on De-Dollarization and Risk Diversification

Context: The Reserve Bank of India (RBI) has clarified its stance on de-dollarization, asserting that recent measures aim at diversifying risks rather than completely moving away from the US dollar.

• De-dollarization refers to reducing dependence on the US dollar in international trade and reserves.
• This strategy often stems from geopolitical tensions and the pursuit of economic sovereignty.
• The RBI’s approach reflects a balance between global economic realities and India’s financial stability.

The clarification comes amidst geopolitical statements, including threats of “100% tariffs” by the US if countries, including BRICS nations, sought alternatives to the dollar.

Key Highlights:

1. Emphasis on Diversification Over Complete De-Dollarization:

• RBI Governor Shaktikanta Das emphasized that initiatives like local currency trade agreements and Vostro accounts are designed to reduce dependency on the dollar, not eliminate it.
  • Vostro accounts are Indian rupee-denominated bank accounts held by foreign banks in India.
  • They enable trade in local currencies, reducing reliance on third-party currencies like the dollar.
• The primary aim is to mitigate risks from over-reliance on a single currency for trade and reserves.

2. Central Banks’ Shift to Gold:

• Central banks, including the RBI, are increasingly buying gold to diversify reserves.
  • In 2022, global central banks purchased a record 1,136 tonnes of gold, followed by 1,037 tonnes in 2023.
  • The RBI added 27 tonnes of gold in October 2024, the largest acquisition among central banks during this period.
• This shift is driven by global uncertainties, including the Ukraine war and fears of secondary sanctions against countries like Russia and China.

3. Addressing Dollar Dominance:

• The US dollar’s share in global foreign reserves is gradually declining, partly due to the rise of the Chinese yuan.
• Emerging markets like India are seeking alternatives to mitigate geopolitical and economic risks tied to dollar dominance.

4. Encouraging Domestic Currency Trade:

• India is promoting domestic currency trade with partners like Russia and the UAE to reduce risk exposure.
• However, international trade in rupees remains limited due to India’s trade deficits with most nations, except the US.

Geopolitical Context:

1. BRICS and Currency Discussions:

• BRICS nations have explored the idea of a shared currency, but challenges persist due to their diverse economic and geographic landscapes.
• India has resisted adopting the Chinese yuan for Russian oil imports, emphasizing the importance of economic sovereignty.

2. Challenges in South Asia:

• In neighboring countries like Sri Lanka, Pakistan, and Bangladesh, rising oil prices and declining dollar reserves have triggered economic turmoil.

• While India has maintained healthy reserves, the country remains alert to the volatility of the dollar.

Conclusion:

The RBI’s cautious approach to managing dollar dependence highlights a strategic balance between mitigating economic risks and maintaining global trade stability.

• Initiatives like increased gold reserves and promoting the rupee for international trade underscore India’s efforts to diversify risk.
• However, challenges such as trade deficits and high transaction costs in local currency trade hinder a full-scale move away from the dollar.

This strategy reflects India’s commitment to financial stability, economic sovereignty, and navigating a complex global landscape with resilience.

2. New Genetic Study Reveals Close Ties Between Nicobarese and Southeast Asian Htin Mal Community

Context: A groundbreaking genetic study reveals that the Nicobarese tribe, indigenous to the Nicobar Islands, shares a significant genetic connection with the Htin Mal community of Thailand and Laos.

This study, published in the European Journal of Human Genetics, involved a comprehensive analysis of 1,559 samples, offering fresh insights into ancient migrations and cultural exchanges across South and Southeast Asia.

Why in News?

The study highlights the Austroasiatic linguistic and genetic linkages between the Nicobarese and the Htin Mal, providing a deeper understanding of the tribe’s ancestral roots.

The findings mark the first detailed genetic analysis of the Nicobarese population, emphasizing their migration patterns and evolutionary history.

Tribals in the Andaman & Nicobar Islands

Key Tribes:

The Andaman & Nicobar Islands are home to several indigenous tribes, each with distinct cultures and identities:

• Great Andamanese
• Onges
• Sentinelese
• Jarawas
• Nicobarese

Steps for Tribal Welfare:

1. Building Communication and Trust: The administration has established effective communication channels with tribes like the Jarawas, enhancing trust and collaboration.
2. Protecting the Sentinelese
   • A strict “eyes-on and hands-off” policy ensures minimal interference with the isolated Sentinelese tribe.
   • A circumnavigation protocol prevents poaching and safeguards their environment.

The Htin Mal Community:

Who are the Htin Mal?

The Htin Mal community resides in mainland Southeast Asia, primarily in Thailand and Laos.
They speak an Austroasiatic language, part of the Khmuic branch, which connects them linguistically to the Nicobarese tribe.

Ethnic Significance:

• Despite their genetic closeness to the Nicobarese, the Htin Mal have maintained a distinct ethnic identity.
• Their study is vital in understanding ancient migrations and cultural exchanges across Southeast Asia.

Key Findings of the Genetic Study:

About the Study:

The research was led by scientists from the CSIR-Centre for Cellular and Molecular Biology (CCMB).
It analyzed DNA markers inherited from both parents to trace the genetic history of the Nicobarese population.

Major Discoveries:

• The Nicobarese share a strong ancestral connection with Austroasiatic populations in South and Southeast Asia.

• The tribe likely settled in the Nicobar Islands approximately 5,000 years ago, possibly during the Neolithic era.
• A close genetic affinity was identified with the Htin Mal, reinforcing their shared ancestry.

Nicobarese Tribe: A Closer Look:

Location and Habitat

The Nicobarese tribe inhabits the Nicobar Islands, located in the eastern Indian Ocean.
Key islands include Car Nicobar, Great Nicobar, Little Nicobar, and Nancowry.

Historical Migration:

• The Nicobarese are believed to have migrated to the islands 4,500–5,000 years ago, with men and women relocating together.
• Earlier theories suggested migration during the early Holocene (11,700 years ago), but this new study revises the timeline.

Cultural and Genetic Preservation:

• Isolation from mainland populations has preserved the Nicobarese tribe’s genetic lineage, language, and ethnic identity.
• Stable DNA markers allowed researchers to trace their ancestral roots accurately.

Current Lifestyle:

• The Nicobarese, numbering approximately 25,000, live sustainably in forested regions.
• Their livelihood includes farming, animal husbandry (pigs, goats, hens), and the use of forest resources like coconut palm.

Need for Protection:

To preserve their unique genetic and cultural heritage, researchers stress the importance of shielding the tribe from exposure to mainland pathogens, which could jeopardize their health and identity.

Conclusion:

This genetic study reaffirms the deep historical ties between the Nicobarese and Southeast Asian communities, shedding light on ancient migration patterns and cultural exchanges.

As a critical link in understanding human history in the region, the Nicobarese tribe underscores the importance of safeguarding indigenous communities and their unique legacies.

3. Debate over Tungsten Mining in Madurai: A Clash of Priorities

Context: A recent decision to permit tungsten mining in the biodiversity-rich Melur region of Madurai, Tamil Nadu, has sparked intense debate.

The project, initiated by the Union Ministry of Mines, has drawn sharp criticism from environmentalists, local activists, and the state government, citing concerns over biodiversity loss and cultural disruption.

What is Tungsten?

A Critical Mineral:

Tungsten is a rare, dense metal renowned for its hardness, heat resistance, and the highest melting point among all metals (3,422°C).

It is deemed a critical resource due to its vital role in defense, high-tech industries, and green energy applications.

Key Applications:

1. Industrial Tools:
   • Utilized in cutting tools, drills, and abrasives due to its exceptional durability.
   • Tungsten carbide, a compound of tungsten, is highly valued for manufacturing robust tools.
2. Electronics:
   • Integral to light bulb filaments, X-ray tubes, and electrical contacts.
   • Used in semiconductors and heating elements.
3. Aerospace and Defense:
   • Forms high-strength alloys for military armor and aerospace components.
   • Employed in missile tips and radiation shielding due to its density.
4. Medical and Green Energy:
   • Critical for medical imaging devices and radiation shielding in cancer treatment.
   • Essential in wind turbines and superalloys for green energy technologies.

India’s Tungsten Landscape:

• Major Deposits:
  • Rajasthan (Degana Mines), Andhra Pradesh, and Karnataka.
• Current Status: Limited production has led India to rely on imports for most of its tungsten needs.

Global Leaders in Tungsten:

• China: Dominates production with over 80% of global output.
• Other major players: Russia, Canada, Vietnam, and Austria.

The Controversy:

The Project:

On November 7, 2024, Hindustan Zinc Limited, a Vedanta subsidiary, was awarded rights to mine tungsten in Nayakkarpatti, Madurai.

The site, spanning 2,015.51 hectares, contains rich deposits of scheelite, a primary tungsten ore.

Concerns Raised:

The site overlaps with the Arittapatti-Meenakshipuram Biodiversity Heritage Area, notified in 2022 to protect its unique flora, fauna, and cultural landmarks.

Opposition to the Mining Project:

Environmental Concerns:

• The biodiversity site, covering 193.63 hectares, is home to rare flora and fauna.
• Activists warn of potential harm from tailings, which may release harmful metals like arsenic, cadmium, and lead, threatening both the environment and human health.

Cultural Significance:

• The region holds ancient temples and Jain relics, vital to Tamil Nadu’s cultural heritage.
• Locals fear mining will distort the identity of this historic area.

Public Outcry:

• Environmental groups, including Poovulagin Nanbargal, have opposed the project.
• Activist R.S. Mugilan criticized Vedanta’s environmental track record, citing past incidents like pollution from its Thoothukudi copper plant.

Government’s Stance:

State Government’s Position:

• Tamil Nadu’s Chief Minister M.K. Stalin has pledged to block the project, citing ecological and cultural concerns.
• The state claims it notified the Centre about the biodiversity heritage status during initial discussions.

Union Government’s Argument:

• The Union Ministry of Mines stated there was no objection from Tamil Nadu during the auction process.
• It highlighted the strategic significance of tungsten for national security and technological progress.

Conclusion:

The Madurai tungsten mining project reflects a broader conflict between economic priorities and environmental preservation. 

While the Union government stresses the strategic importance of mining for critical minerals, Tamil Nadu and environmentalists argue for safeguarding biodiversity and cultural heritage.

The final decision could set a crucial precedent for balancing resource exploitation with sustainability in India.

4. India-Bhutan Strengthen Ties: Key Areas of Cooperation

Context: The recent visit of King Jigme Khesar Namgyel Wangchuck of Bhutan to India has further deepened the enduring partnership between the two nations. The visit focused on enhancing cooperation in hydropower, regional connectivity, and sustainable development, reaffirming the strategic and economic ties between the neighbors.

5. India’s 100-Day TB Elimination Campaign: A Bold Step Towards a Healthier Future

Context: India is taking a significant stride in its fight against tuberculosis (TB) with the launch of the 100-Day TB Elimination Campaign by the Ministry of Health and Family Welfare. This initiative aligns with India’s ambitious goal of eradicating TB by 2025, five years ahead of the global target of 2030.

About the 100-Day TB Elimination Campaign:

• The campaign will be implemented across 33 States and Union Territories, focusing on:
  • Enhancing TB case detection.
  • Reducing diagnostic delays.
  • Improving treatment outcomes.
• With India carrying the highest TB burden globally, this initiative is critical in addressing the epidemic effectively.

Understanding Tuberculosis (TB):

What is TB?

• TB is an infectious disease caused by the bacterium Mycobacterium tuberculosis, primarily affecting the lungs but also impacting the kidneys, brain, spine, and skin.
• Symptoms: Persistent cough, chest pain, fatigue, weight loss, fever, and night sweats.
• Transmission: Spread through the air when infected individuals cough, sneeze, or spit.
• Treatment: Preventable and curable using antibiotics.
• Vaccine: The Bacillus Calmette-Guérin (BCG) vaccine offers moderate protection against severe TB forms, particularly in children.

India’s TB Burden and Global Impact:

• Global TB Cases: TB surpassed COVID-19 as the leading infectious killer in 2023, with 8.2 million new cases.
• India’s TB Burden:
  • 2.8 million cases recorded in 2023.
  • India accounts for 26% of global cases and 29% of global TB deaths (315,000 fatalities).
  • Home to 27% of the world’s multidrug-resistant TB cases, requiring specialized treatment approaches.

Challenges in Eliminating TB in India:

1. Drug-Resistant TB:

• Multidrug-resistant TB (MDR-TB) demands expensive and prolonged treatments.
• India faces a significant challenge in managing these cases effectively.

1. Vulnerable Populations: Migrant workers, urban slum dwellers, and individuals living in crowded conditions are at heightened risk.
2. Diagnostics and Case Detection: Limited access to modern diagnostic tools leads to reliance on outdated methods, delaying treatment.
3. Inadequate Healthcare Infrastructure: Rural and remote areas lack quality healthcare facilities, resulting in delayed diagnoses and treatment.
4. Social Stigma and Awareness: Stigma around TB prevents individuals from seeking timely medical help, while lack of awareness perpetuates the disease.
5. Private Sector Coordination: A large portion of healthcare services in India is provided by the private sector, necessitating standardized treatment protocols and better collaboration.
6. Treatment Adherence: Ensuring patients complete their prolonged antibiotic courses remains a critical challenge.

Government Initiatives to Combat TB:

1. Revised National Tuberculosis Control Program (RNTCP):Launched in 1997, this flagship program has been strengthened over time to improve TB management.
2. National Tuberculosis Elimination Program (NTEP): The National Strategic Plan (2017–2025) focuses on achieving TB-free India by 2025.
3. Pradhan Mantri TB Mukt Bharat Abhiyan (PMTBMBA): Introduced in 2022, this initiative provides nutritional, diagnostic, and vocational support to TB patients.
4. Universal Drug Susceptibility Testing (DST): Enables early detection of drug-resistant TB strains for customized treatment.
5. Ni-kshay Portal:Tracks and monitors notified TB cases to ensure better management.
6. Introduction of New Drugs: Inclusion of advanced drugs like Bedaquiline and Delamanid for treating drug-resistant TB.
7. Research and Vaccine Development: Trials for new vaccines like Immuvac and VPM1002 are underway to provide better protection against TB.

Suggestions for Enhanced TB Control:

• Establish global norms and standards for TB prevention and care.
• Promote evidence-based policies and strengthen their implementation.
• Monitor progress in TB financing, diagnosis, and treatment at regional and national levels.

Conclusion:

India’s 100-Day TB Elimination Campaign is a decisive step toward achieving its 2025 TB-free goal. While challenges like drug resistance, infrastructure gaps, and stigma remain, continued government initiatives, private sector collaboration, and increased public awareness can significantly reduce the burden of TB and set an example for the global fight against this deadly disease.

6. SAARC: Navigating Challenges and Opportunities on Its 40th Charter Day

Context: On 8th December 2024, the South Asian Association for Regional Cooperation (SAARC) marked its 40th Charter Day, commemorating the establishment of this key regional organization.

What is the South Asian Association for Regional Cooperation (SAARC)?

• Origins of SAARC: The concept of regional cooperation in South Asia was first discussed at several key conferences: the Asian Relations Conference (1947), the Baguio Conference (1950), and the Colombo Powers Conference (1954).
• Formation: The idea took shape in 1980 when Bangladesh’s President Ziaur Rahman proposed the notion of regional cooperation to promote peace and stability.
• Establishment: SAARC was officially founded on 8th December 1985 in Dhaka, Bangladesh, with 7 founding members—Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined as the 8th member in 2007.

• Objectives:
  • Promote welfare and improve quality of life in South Asia.
  • Accelerate economic growth, social progress, and cultural development.
  • Strengthen self-reliance and mutual trust among member states.
  • Enhance collaboration in economic, social, cultural, technical, and scientific fields.
  • Cooperate with other developing countries and international organizations.
• Key Principles: Sovereign equality, territorial integrity, non-interference, and consensus-based decision-making are central to SAARC.

Significance of SAARC Today:

• Demographic and Economic Relevance:
  • 3% of the world’s land area.
  • 21% of the world’s population.
  • 5.21% (USD 4.47 trillion) of the global economy as of 2021.
• Scope of Cooperation:
  • The South Asian Free Trade Area (SAFTA), established in 2004 and effective from 2006, aimed at reducing tariffs and promoting free trade in South Asia.
  • The SAARC Agreement on Trade in Services (SATIS), coming into force in 2012, aimed to enhance intra-regional investments and liberalize trade in services.

India’s Contribution to SAARC:

• SAARC Summits:
  • Hosted three out of the eighteen SAARC Summits: the 2nd summit in Bengaluru (1986), the 8th summit in New Delhi (1995), and the 14th summit in New Delhi (2007).
• Technological Cooperation:
  • National Knowledge Network (NKN) extended to Sri Lanka, Bangladesh, and Bhutan, fostering educational and technological exchange.
  • South Asian Satellite (SAS) launched in 2017, providing satellite-based services to SAARC countries.
• Currency Swap Arrangement:
  • In 2019, India approved a ‘Standby Swap’ in the Currency Swap Arrangement for SAARC members, amounting to USD 400 million, aimed at enhancing financial cooperation.

• Disaster Management:
  • Interim Unit of the SAARC Disaster Management Center hosted in Gujarat provides policy advice, technical support, and training for disaster risk management across SAARC countries.

• South Asian University (SAU):
  • Established through an Inter-Governmental Agreement at the 14th SAARC, SAU provides world-class education and research opportunities for students and scholars from SAARC nations.

Role India Can Play in Strengthening SAARC:

• Leadership Role:
  • As the largest economy, India constitutes over 70% of the area and population among the SAARC nations and is strategically connected to almost all member nations.
  • Initiatives like the SAARC satellite and support for infrastructure development underscore India’s commitment.
• Proposed Measures:
  • India must continue offering unilateral concessions like duty-free access for least developed SAARC nations.
  • Smaller nations should leverage India’s growth for their own development rather than perceive it as a threat.
  • Strengthen regional connectivity projects like the BBIN Motor Vehicle Agreement and integrate them with global value chains.
  • Counter China’s growing influence in South Asia while managing the ‘Big Brother’ perception among smaller neighbors.
  • Utilize platforms like QUAD and Indo-Pacific partnerships to counterbalance external pressures and ensure regional cooperation.
  • Engage with South and Southeast Asian nations through BIMSTEC, bypassing Pakistan.
  • Promote people-to-people contact through scholarships, cultural exchanges, and tourism-focused initiatives.

Key Challenges Facing SAARC:

• Political Tensions and Bilateral Conflicts:
  • India and Pakistan dominate SAARC but their strained relations—including issues like terrorism and territorial disputes—have hindered cooperation.
  • Pakistan’s refusal to address cross-border terrorism led to India boycotting the 19th SAARC Summit in 2016, resulting in its postponement.
• Low Economic Integration:
  • Intra-regional trade in SAARC is a mere 5% of its total trade, compared to 65% in the European Union (EU) and 26% in the Association of Southeast Asian Nations.
  • Limited implementation of SAFTA and lack of product diversification stymie economic growth.
• Asymmetric Development:
  • India’s dominance often leads to the ‘Big Brother Syndrome’, causing mistrust among smaller nations.
  • Smaller member states often perceive India as overly dominant, leading to resistance against Indian initiatives. This perception discourages collective action and fosters reliance on external powers like China.
  • Nepal, Bhutan, and Maldives struggle with infrastructure deficits and limited resources.
• Institutional Weaknesses:
  • SAARC’s charter requires unanimous agreement for decisions, enabling any member to veto progress on critical issues.
  • Pakistan has frequently used this mechanism to block agreements like the SAARC Motor Vehicles and Railways pacts.
  • Observers like China, the EU, and the US lack clarity on their roles, limiting external support.

• External Influences:
  • China’s growing presence through the Belt and Road Initiative (BRI) and its strategic investments in Sri Lanka, Bangladesh, and Pakistan complicates intra-SAARC dynamics.
  • The China-Pakistan Economic Corridor (CPEC) and Hambantota port developments amplify China’s influence.

Way Forward:

• Promoting Economic Cooperation:
  • Accelerate the operationalization of SATIS.
  • Expand initiatives like the SAARC Development Fund to support regional projects in infrastructure, healthcare, and education.
• Resolving Political Conflicts:
  • Mediation mechanisms within SAARC could help address bilateral tensions.
  • Promote Track-II diplomacy involving academia, business leaders, and civil society to reduce tension.
  • Prioritize issues like disaster management, education, and public health which are less politically sensitive.
• Leveraging Sub-regional Groupings:
  • Initiatives like BBIN (Bangladesh, Bhutan, India, Nepal) and BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) can complement SAARC’s objectives and foster trust.
• Combating Non-traditional Security Threats:
  • Strengthen regional cooperation on counter-terrorism, disaster management, and enhance intelligence-sharing frameworks among member nations.
• Reform Institutional Mechanisms:
  • Replace the consensus-based decision-making model with weighted voting to prevent a single country from blocking progress.
  • Strengthen the SAARC Secretariat with greater autonomy and financial resources.
• Encouraging Youth Participation:
  • Utilize South Asia’s demographic dividend by fostering student exchanges, scholarships, and youth-centric development programs through the South Asian University and other regional platforms.

Conclusion:

SAARC remains a crucial platform for regional cooperation despite challenges like political tensions and low economic integration. India’s growing leadership can strengthen the organization’s potential. To realize its full potential, SAARC must focus on enhancing economic cooperation, resolving political conflicts, and fostering sub-regional partnerships.