Why the WHO has recommended switching to a healthier salt alternative

• A new solution to an old problem
• Advice to eat less salt (sodium chloride) is not new. It has been part of international and Australian guidelines for decades. This is because evidence clearly shows the sodium in salt can harm our health when we eat too much of it.
• Excess sodium increases the risk of high blood pressure, which affects millions of Australians (around one in three adults). High blood pressure (hypertension) in turn increases the risk of heart disease, stroke and kidney disease, among other conditions.
• The WHO estimates 1.9 million deaths globally each year can be attributed to eating too much salt.
• The WHO recommends consuming no more than 2g of sodium daily. However people eat on average more than double this, around 4.3g a day.
• The World Health Organization (WHO) released new guidelines recommending the use of lower-sodium salt substitutes that contain potassium.
• These guidelines are aimed at helping adults reduce their sodium intake to improve heart health and lower the risk of high blood pressure and cardiovascular diseases (CVDs).
• This recommendation is not for pregnant women, children, or individuals with kidney issues.
• Importantly, these recommendations do not apply to packaged snacks and foods eaten at restaurants and cafeterias — which account for a big chunk of the daily sodium intake.

What Are Lower-Sodium Salt Substitutes (LSSS)?

• LSSS are alternatives to regular table salt.
• They contain less sodium and often use potassium chloride as a substitute for part of the sodium chloride.
• These substitutes can provide a similar taste to regular salt while lowering sodium intake.
• Using LSSS instead of regular salt can lower sodium consumption and potentially help reduce blood pressure.
• Replacing some sodium with potassium might also have benefits for heart health because potassium helps manage blood pressure

What are the WHO’s New Guideline on LSSS

• First, WHO recommends limiting sodium intake to less than 2 grams per day (which is equivalent to about 5 grams of salt) for adults.
• Second, it recommends doing away with table salt as it continues to be one of the best ways of cutting down sodium intake.
• Third and newest guideline asks users to partially replace table salt with potassium.
• This guideline is based on scientific research and aims to provide clear, practical recommendations for using LSSS in a way that maximizes health benefits and minimizes risks.
• The new recommendation, however, does not apply to women, children, or people living with kidney impairments. There wasn’t enough data to suggest the use of potassium-based salts in these groups.

Potassium-enriched salt

• The main lower-sodium salt substitute is called potassium-enriched salt. This is salt where some of the sodium chloride has been replaced with potassium chloride.
• Potassium is an essential mineral, playing a key role in all the body’s functions. The high potassium content of fresh fruit and vegetables is one of the main reasons they’re so good for you. While people are eating more sodium than they should, many don’t get enough potassium.
• The WHO recommends a daily potassium intake of 3.5g, but on the whole, people in most countries consume significantly less than this.
• Potassium-enriched salt benefits our health by cutting the amount of sodium we consume, and increasing the amount of potassium in our diets. Both help to lower blood pressure.
• The key advantage of switching rather than cutting salt intake is that potassium-enriched salt can be used as a direct one-for-one swap for regular salt. It looks the same, works for seasoning and in recipes, and most people don’t notice any important difference in taste.
• In the largest trial of potassium-enriched salt to date, more than 90% of people were still using the product after five years.

Why is the guideline important?

• It is extremely important for India, considering the significant burden of hypertension, heart attacks and strokes, even in younger age groups.
• Nearly 35.5 per cent of the country’s population — or 315 million people — are estimated to be living with hypertension in India, according to the INDIAB study.
• Cardiovascular diseases accounted for 28.1 per cent of the total deaths in India in 2016, according to an analysis of the Global Burden of Disease study.
• Safety Concerns with LSSS
• One concern with LSSS, especially those containing potassium, is that they could cause hyperkalemia (too much potassium in the blood).
• This can be dangerous, particularly for people with kidney problems, as their kidneys may struggle to remove excess potassium. While LSSS can help lower sodium intake, it’s important to ensure that the levels of potassium are safe for everyone.
• This is why WHO’s new guideline will provide advice on how to use LSSS safely.

Why India should cheer the rise of China''s DeepSeek AI

• Recently, the tech world has been rocked by a seismic event. The tech-heavy Nasdaq index dropped 3.1%, while Nvidia, a driver of the AI revolution, saw its stock plummet 17%, wiping out a staggering $593 billion of its market value.
• The dramatic fall in U.S. tech stocks can be attributed to a simple yet profound realisation. If such a powerful AI model can be built so cheaply, the sky-high valuations of tech companies may be grossly inflated.
• As the rest of the world unravels how DeepSeek achieved this feat, a new AI world order is emerging—one that promises to be more equitable and inclusive. Despite India''s geopolitical tensions with China, the rise of DeepSeek is a development worth celebrating. It represents not just a technological breakthrough but a potential catalyst for India''s growth, innovation and ambition.

The DeepSeek Phenomenon: A Game-Changer in AI

• DeepSeek, founded in May 2023 by Liang Wenfeng, is a Chinese artificial intelligence company based in Hangzhou, Zhejiang. Initially backed by Liang''s hedge fund, High-Flyer, DeepSeek has focused on developing open-source large language models (LLMs) that excel in reasoning tasks.
• The company began making waves globally since January 22nd, 2024 when its researchers released a paper titled "DeepSeek-R1: Incentivizing Reasoning Capability in Large Language Models via Reinforcement Learning." The paper revealed that DeepSeek-R1 was trained for a mere $5.5 million, a fraction of the cost of its competitors. For context, Gemini is estimated to have cost between $30 million and $191 million, while ChatGPT-4''s technical creation cost ranges from $41 million to $78 million. These figures don''t even account for staff salaries and other operational expenses.
• But the real game-changer lies in DeepSeek''s operational efficiency. The model charges $0.55 per million input tokens and $2.19 per million output tokens, compared to OpenAI''s ChatGPT, which charges $15 and $60, respectively. This dramatic cost reduction is made possible by DeepSeek''s innovative architecture.
•  Despite a massive 671 billion parameters, DeepSeek-R1 activates only 37 billion per forward pass, making it significantly more resource-efficient. This means it doesn''t have to rely on the expensive, high-powered AI chips currently monopolised by a handful of companies in the West.
• Moreover, by operating under the permissive MIT license, DeepSeek allows developers to inspect, modify, and use its models freely, even for commercial purposes. This open-source approach effectively breaks down the entry barriers plaguing the AI industry.

The Implications for the Global South

• The rise of DeepSeek is not just a technological milestone but a harbinger of a new world orde. To understand why, we must recognise a fundamental truth: human civilisation is built on applying intelligence and logic. From the labourer carrying sacks to the CEO steering a multinational corporation, every job relies on some form of intelligence. The advent of artificial intelligence has externalised this intelligence, turning it into a commodity.
• Those who control AI, therefore, wield immense power—they can dictate the cost of intelligence and, by extension, the cost of nearly everything else in the world.
• This dynamic has been particularly detrimental to the Global South, where access to cutting-edge technology is often limited by cost. The high price tags of Western AI models like ChatGPT and Gemini have placed them out of reach for most individuals and businesses in developing nations.
• This has created a widening gap between the Global North and South, accentuating existing inequalities. DeepSeek, with its dirt-cheap pricing and open-source model, disrupts this status quo. By democratising access to artificial intelligence, it makes it affordable for the very regions that need it most.
• Consider this: how many of us in India can afford the $20 monthly subscription fee for ChatGPT or Gemini? DeepSeek changes this equation entirely. By offering an affordable and efficient model, it removes AI from the exclusive domain of the wealthy. This isn''t just a victory for individual users but entire nations, as affordable AI can drive innovation, boost productivity, and create new opportunities in every sector of every nation.

A Blueprint for India''s AI Ambitions

• The rise of DeepSeek also holds valuable lessons for India. If a small Chinese company can a world-class AI model in a relatively short time and at a fraction of the cost, there is no reason why India cannot do the same.
• The Indian government should take note of the policies and strategies that have enabled China''s AI boom and seek to replicate them. This includes investing in research and development, fostering a culture of innovation, and creating an ecosystem that supports startups and open-source projects.
• India''s strengths in software development and a nearly endless pool of engineering talent position us well to become a significant AI player. However, this can come to fruition only when the government prioritises AI as a strategic sector to actualise this potential. This can only be done by allocating resources, incentivising private investment, and building the infrastructure to support AI development. It also means learning from China''s approach to AI governance, which has balanced innovation with regulation to ensure that AI serves the public good.

The Broader Implications for the World

• The rise of DeepSeek isn''t just a challenge to Western dominance of AI tech but to the very structure of global power. Historically, technological superiority has been a key determinant of geopolitical influence.
• By making AI affordable and accessible, DeepSeek and similar models can level the playing field. This is particularly significant for the Global South, which has long been marginalised in the global economy. Affordable AI can empower developing nations to address pressing challenges, from climate change to poverty, and to participate more fully in the global economy.
• Moreover, the open-source nature of DeepSeek fosters collaboration and innovation. Building on its model creates a virtuous cycle of improvement and adaptation, a stark contrast to the proprietary models of many Western companies. In this sense, DeepSeek represents not just a technological breakthrough but a philosophical shift—a move towards a more open, inclusive, and equitable AI ecosystem.

A Call for India to Embrace the AI Revolution

• Much as it has woken the world, DeepSeek''s rise is also a wake-up call for India as it proves that the future of AI need not be dominated by a handful of Western players. This signals India to leverage its strengths to build its own vibrant, inclusive and open AI ecosystem, much like China did. By adding to the democratisation of AI, India can join China in helping transform economies and empowering individuals to eventually reshape the global order.
• Hence, we in India and the GoI should not view the rise of Chinese AI as a threat but as an inspiration. By learning from our neighbour''s successes and building upon our unique strengths, we can play the AI revolution on the front foot.
• The time to act is now.
• The future of AI is not just about technology; it is about power, equity, and opportunity. In this future, India must play a vital role. Let us cheer the rise of DeepSeek, not just for what it represents, but for the possibilities it unlocks—for India, for the Global South, and for the world.

MNRE notifies Revised Quality Control Order for Solar Photovoltaic Products

•  Union Ministry of New and Renewable Energy (MNRE) has notified the Solar Systems, Devices, and Components Goods Order, 2025, which revises and supersedes the existing Solar Photovoltaics, Systems, Devices, and Components Goods (Requirements for Compulsory Registration) Order, 2017.
• The revised order has been notified in the Gazette of India vide Gazette Notification dated 27.01.2025 under the Bureau of Indian Standards (BIS) Act, 2016 and will come into effect 180 days from the date of publication. This order covers Solar PV modules, Inverters to be used in Solar PV applications and Storage Batteries.
• The revised Quality Control Order (i.e., QCO, 2025) has been notified by the MNRE after due consultations for over 24 months with all the relevant Stakeholders i.e., Solar PV Module manufacturers, Inverter manufacturers, Storage Batteries manufacturers, Testing laboratories for the products, National Institute of Solar Energy (NISE) and Bureau of Indian Standards (BIS).
• Comments from World Trade Organization (WTO) member countries were also sought by uploading the draft notification on WTO-TBT (Technical Barrier to Trade) website for 60 days before publishing in the Gazette of India.
• The revised Quality Control Order aligns with the Government of India’s commitment to promoting high-quality and efficient solar photovoltaic (PV) products for sustainable energy development. The revision aims to enhance product reliability, ensure safety, and support India’s ambitious renewable energy targets.

Key Highlights of the Order:

• 1. Mandatory Standards:
• Solar PV modules, inverters, and storage batteries must conform to the latest Indian Standards (as notified by BIS) and bear the Standard Mark under a license from the BIS.
• Minimum efficiency criteria (@ Standard Test Conditions) for solar PV modules are introduced which are as follows:
• 18% for Mono Crystalline Silicon and Thin-Film PV Modules.
• 17% for Poly Crystalline Silicon PV Modules.
• 2.   Applicability:
• The order applies to manufacturers, importers, distributors, retailers, sellers and lessor of solar PV systems and components.
• Products meant exclusively for export are exempted.
• 3.   Certification and Enforcement:
• The Bureau of Indian Standards (BIS) will oversee grant of licence and enforcement of the order. Market surveillance will be done by BIS or agency notified by BIS in consultation with MNRE.
• 4.  Concurrent Operation:
• Existing licenses under the QCO, 2017 remain valid, with renewals and new registrations governed by the QCO, 2025.
• 5.  Penalty for Non-Compliance:
• Any violation of the provisions of this order will attract penalties under the Bureau of Indian Standards Act, 2016.
• 6.  Promoting Public Interest:
• The updated standards and specifications will ensure the availability of safe, high-performance solar products in India’s growing renewable energy market.

Focus on Innovation and Efficiency:

• The revised QCO, 2025 introduces detailed testing and efficiency requirements for solar PV technologies, including crystalline silicon and thin-film photovoltaic modules. It also specifies rigorous safety measures for inverters and storage batteries to meet global standards.
• This initiative underscores MNRE’s commitment to ensuring the highest quality standards while fostering innovation and sustainability in the renewable energy sector

Travel of magnetic pole from Canada to Siberia, disallows deeper dive of particles

• The drift of the Earth’s north magnetic pole from Canada to Siberia has influenced the penetration altitudes of charged particles in the mid-high latitudes in the Earth’s magnetosphere, shows a new study. Understanding the behavior of these particles with an electric charge, such as electrons, quarks, protons, and ions that are responsible for the Northern lights or aurora, can better predict space weather and safeguard our satellite systems.
• Earth’s magnetic field, a protective shield created by the planet’s core, is quietly changing. This invisible force field, which helps guide compasses and protect us from harmful solar winds, has been shifting for over a century.
• Scientists noticed that the north magnetic pole, which used to be nestled in Canada, till 1990, had slowly but steadily drifted toward Siberia.
• By 2020, it was moving at a surprising speed of about 50 kilometers per year. While this might sound like a minor geographic adjustment, the shift had significant consequences for the way charged particles behaved in space.
• In Earth’s magnetosphere, a region called the radiation belts, hold energetic charged particles like protons and electrons. These particles, influenced by Earth’s magnetic field, gyrate, bounce, and drift around the planet.
• But where these particles end up—and how close they get to Earth—depends on the strength and shape of the magnetic field. Scientists have been trying to investigate how does the movement of the north magnetic pole change the paths of these particles.
• Researchers at the Indian Institute of Geomagnetism, an autonomous institute of the Department of Science and Technology (DST) decided to simulate the trajectory of these particles using simulation models.
• They simulated three-dimensional relativistic test particles based on the IGRF-13 (International Geomagnetic Reference Field) model, to quantify changes in the altitudes of energetic protons.
• Ms. Ayushi Srivastava, Dr Bharati Kakad, and Dr Amar Kakad discovered that in the year 1900, particles near the Canadian region, where the magnetic field was stronger, tended to stay at higher altitudes. But by the year 2020, the story was different. As the north pole shifted toward Siberia, the magnetic field in Canada weakened while the field in Siberia grew stronger.
• According to the recent study, this shift,disallowed particles over Siberian longitudes to dive deeper into Earth’s atmosphere.
• For some particles, the lowest altitudes they could reach (called penetration altitudes)rose by as much as 400 to 1200 kilometers over Siberia. This is because the stronger magnetic field gradients in Siberia created by the north magnetic field drift interacts with the ambient magnetic field and creates a force, which alters the trajectory of the charged particles.
• As a result, the particles are deflected outward, effectively preventing them from approaching the Earth in the Siberian region.
• Such impact of geomagnetic field variations on particle dynamics, have real-world implications.
• Satellites in polar orbits, which pass through these regions, can experience varying levels of drag (resistive force caused by change in atmospheric density due to heating cause by collision of high energy and atmospheric particles) depending on how deep charged particles penetrate the atmosphere. The energy these particles deposit can also heat the atmosphere, changing its density and affecting satellite paths.

7.75 CRORE KISAN CREDIT CARDS OPERATIONAL AS OF MARCH 2024: ECONOMIC SURVEY 2024-25

• Providing adequate credit support to all farmers, especially small and marginal farmers and vulnerable sections of society, is crucial to improving agricultural productivity and income, states the Economic Survey 2024-25, tabled by Union Minister of Finance.
• The Economic Survey highlights that as of March 2024, the country has 7.75 crore operational Kisan Credit Card (KCC) accounts with a loan outstanding of ₹9.81 lakh crore. As of 31 March 2024, 1.24 lakh KCC and 44.40 lakh KCC were issued to fisheries and animal husbandry activities, respectively. 

Modified Interest Subvention Scheme

• Starting from FY25, the claim processing under Modified Interest Subvention Scheme (MISS) has been digitised through the Kisan Rin Portal (KRP) for faster and more efficient capturing and settlement of MISS claims. By 31 December 2024, over 1 lakh crore claims have been processed.
• About 5.9 crore farmers that are currently getting benefitted under the MISS-KCC scheme, have been mapped through KRP. To further support small and marginal farmers, banks must allocate 40 per cent of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher, to priority sectors, including agriculture. All the above measures have significantly reduced the reliance on non-institutional credit sources from 90 per cent in 1950 to around 25.0 per cent in FY22.

Ground-Level Credit

• Ground-level credit (GLC) to agriculture has also shown impressive growth with a CAGR of 12.98 per cent from 2014-15 to 2024-25. The GLC has risen from ₹8.45 lakh crore in 2014-15 to ₹25.48 lakh crore in 2023-24. Within this, the share of small and marginal farmers has significantly increased from ₹3.46 lakh crore (41 per cent) to ₹14.39 lakh crore (57 per cent) from 2014-15 to 2023-24.

 Pradhan Mantri Fasal Bima Yojana

• The participation of State governments and insurers has increased to 24 and 15, respectively, in FY25, up from 20 and 11 in the 2020-21. Additionally, these interventions have contributed to a 32 per cent reduction in premium rates compared to previous years.
• As a result, in the FY24 period, the number of enrolled farmers reached 4 crore, a 26 per cent increase from 3.17 crore in the FY23 period. The insured area also expanded to 600 lakh hectares in FY24, reflecting a 19 per cent rise from 500 lakh hectares in FY23.

PM-KISAN and Pradhan Mantri Kisan Maandhan Yojana

• Government initiatives like PM-KISAN, which provides direct income support to farmers, and Pradhan Mantri Kisan Maandhan Yojna (PMKMY), which offers pension schemes for farmers, have successfully contributed to bolstering farmers'' incomes and enhancing their social security safety nets.
• More than 11 crore farmers have been benefitted under PM-KISAN and 23.61 lakh farmers had enrolled under PMKMY as of 31st October 2024. In addition to these efforts, reforms such as e-KYC compliance under the ONORC initiative and credit guarantee schemes for e-NWR financing address systemic inefficiencies that have historically plagued the agricultural sector.
• FOOD MANAGEMENT: ENABLING FOOD SECURITY
• The Economic Survey states that the government has long tackled household food security through the Public Distribution System (PDS) and Targeted PDS (TPDS), the National Food Security Act (NFSA) 2013 and the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) marked a fundamental shift in the approach to food security.
• NFSA act legally entitles up to 75 per cent of the rural population and up to 50 per cent of the urban population to receive foodgrain, free of cost, under the Targeted Public Distribution System, which, as per Census 2011, comes to 81.35 crore persons. Therefore, about two-thirds of the population is covered under the Act to receive highly subsidised food grains.
• The allocation of free food grain under PMGKAY is in addition to the regular allocation for around 80 crore beneficiaries. The provision of free food grains under PMGKAY for another five years, with effect from 1st January 2024, reflects the long-term commitment and vision of the Government for addressing National food and nutrition security.
• AGRICULTURE MECHANIZATION:

Sub-Mission on Agricultural Mechanisation

• The Economic Survey states that the Sub-Mission on Agricultural Mechanisation (SMAM) supports state governments with training and demonstrations related to agricultural machinery, in establishing Custom Hiring Centres (CHCs), and assisting farmers in acquiring various farming equipment. As of 31 December, 26,662 CHCs were established under this initiative, with 138 CHCs set up in the year FY25 alone
• Promoting Drones to Women Self-Help Groups
• The government has promoted a recently approved scheme aimed at providing drones to Women SHGs. This initiative targets 15000 selected Women SHGs to offer rental services to farmers for agricultural purposes, including for the application of fertilisers and pesticides.
• Central financial assistance of 80 percent of the drone''s cost and related ancillary charges, up to a maximum of ₹8 lakh, will be granted to the women SHGs for drone purchases. This scheme will also deliver sustainable business and livelihood support to the SHGs, enabling them to generate an additional
• income of at least ₹1 lakh per annum.
• AGRICULTURE MARKETING INFRASTRUCTURe
• Agriculture Marketing Infrastructure Sub-Scheme
• The Economic Survey states that under Agriculture Marketing Infrastructure Sub-Scheme, as of October 31, 2024, 48611 storage infrastructure projects have been sanctioned, with ₹4,795.47 crore disbursed in subsidies. In addition, 21004 projects related to other types of infrastructure assisted under the AMI scheme have been sanctioned, amounting to a subsidy of ₹2,125.76 crore
• e-NAM
• The Economic Survey states that the initiative provides free software and financial assistance of ₹75 lakh per Agricultural Produce Market Committee (APMC) Mandi for essential hardware, which includes quality assaying equipment and the development of infrastructure for cleaning, grading, sorting, and packaging.
• As of October 31, 2024, over 1.78 crore farmers and 2.62 lakh traders have registered on the e-NAM portal. As of the same date, 9,204 FPOs have been registered, and 4,490 of these organisations have received equity grants amounting to ₹237 crore.

FOOD GRAIN STORAGE INFRASTRUCTURE

• The Economic Survey highlights that to support and upgrade the storage infrastructure for foodgrains and to ramp up the storage capacity in India, steel silos are being created under PPP.
• Hub and Spoke Model Silos
• The government is creating capacity under Hub and Spoke Model Silos, where “Hub” silos have a dedicated railway siding and container depot facility. While the transportation from “Spoke” Silos to “Hub” Silos is undertaken by road, transportation from Hub to Hub is via rail.
• Flospan: Mobile Storage Unit
• To improve food grain storage, especially in hilly and remote areas, the government is exploring the use of Flospan, a type of Mobile Storage Unit (MSU), in collaboration with the World Food Programme (WFP).
•  These units can be quickly erected and have a storage capacity of 400 metric tonnes. As a pilot project, WFP has installed Flospan in six states: Jammu & Kashmir, Himachal Pradesh, Rajasthan, Mizoram, Uttarakhand, and Chhattisgarh.
• Smart Warehouse
• To modernise government grain warehouses, the government partnered with WFP and IGMRI to pilot a ''Smart Warehouse''. This warehouse uses sensors to monitor temperature, humidity, airflow, and rodent activity, providing real-time data to improve storage and reduce losses.

INDEX OF EIGHT CORE INDUSTRIES (BASE: 2011-12=100) FOR DECEMBER, 2024

• The combined Index of Eight Core Industries (ICI) increased by 4.0 per cent (provisional) in December, 2024 as compared to the Index in December, 2023. The production of Coal, Electricity, Steel, Cement, Refinery Products, Fertilizers and Crude Oil recorded positive growth in December 2024. The details of annual indices, monthly indices and growth rates are provided at Annex I and Annex II.
• 2.The ICI measures the combined and individual performance of production of eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).
• 3.The final growth rate of Index of Eight Core Industries for September 2024 increased by 2.4 per cent. The cumulative growth rate of ICI during April to December, 2024-25 is 4.2 per cent (provisional) as compared to the corresponding period of last year.

 The summary of the Index of Eight Core Industries is given below:

• Coal - Coal production (weight: 10.33 per cent) increased by 5.3 per cent in December, 2024 over December, 2023. Its cumulative index increased by 6.2 per cent during April to December, 2024-25 over corresponding period of the previous year.
• Crude Oil - Crude Oil production (weight: 8.98 per cent) increased by 0.6 per cent in December, 2024 over December, 2023. Its cumulative index declined by 2.1 per cent during April to December, 2024-25 over corresponding period of the previous year.
• Natural Gas - Natural Gas production (weight: 6.88 per cent) declined by 1.8 per cent in December, 2024 over December, 2023. Its cumulative index increased by 0.7 per cent during April to December, 2024-25 over corresponding period of the previous year.
• Petroleum Refinery Products - Petroleum Refinery production (weight: 28.04 per cent) increased by 2.8 per cent in December, 2024 over December, 2023. Its cumulative index increased by 2.7 per cent during April to December, 2024-25 over corresponding period of the previous year.
• Fertilizers - Fertilizer production (weight: 2.63 per cent) increased by 1.7 per cent in December, 2024 over December, 2023. Its cumulative index increased by 1.6 per cent during April to December, 2024-25 over corresponding period of the previous year.
• Steel - Steel production (weight: 17.92 per cent) increased by 5.1 per cent in December, 2024 over December, 2023. Its cumulative index increased by 5.8 per cent during April to December, 2024-25 over corresponding period of the previous year.
• Cement - Cement production (weight: 5.37 per cent) increased by 4.0 per cent in December, 2024 over December, 2023. Its cumulative index increased by 3.3 per cent during April to December, 2024-25 over corresponding period of the previous year.
• Electricity - Electricity generation (weight: 19.85 per cent) increased by 5.1 per cent in December, 2024 over December, 2023. Its cumulative index increased by 5.3 per cent during April to December, 2024-25 over corresponding period of the previous year..
• Note : Since April 2014, Electricity generation data from Renewable sources are also included.
• Note: Since March 2019, a new steel product called Hot Rolled Pickled and Oiled (HRPO) under the item ‘Cold Rolled (CR) coils’ within the production of finished steel has also been included.

Highlights of Economic Survey 2024-2025.

• The global economy exhibited steady yet uneven growth across regions in 2024. A notable trend was the slowdown in global manufacturing, especially in Europe and parts of Asia, due to supply chain disruptions and weak external demand. In contrast, the services sector performed better, supporting growth in many economies.
•  Inflationary pressures eased in most economies. However, services inflation has remained persistent. Although commodity prices have stabilised, the risk of synchronised price increases persists.
• In this global context, India displayed steady economic growth. As per the first advance estimates of national accounts, India’s real GDP is estimated to grow by 6.4 per cent in FY25. Growth in the first half of FY25 was supported by agriculture and services, with rural demand improving on the back of record Kharif production and favourable agricultural conditions.
• The manufacturing sector faced pressures due to weak global demand and domestic seasonal conditions. Private consumption remained stable, reflecting steady domestic demand.
•  Fiscal discipline and strong external balance supported by a services trade surplus and healthy remittance growth contributed to macroeconomic stability. Together, these factors provided a solid foundation for sustained growth amid external uncertainties
• Finance Minister Nirmala Sitharaman tabled the Economic Survey 2024-25 in the Lok Sabha in Parliament on January 31.
• The Economic Survey presents a comprehensive overview of India’s current economic performance and future outlook, highlighting key trends, challenges, and opportunities for growth:

Key points: 

• GDP Growth: India’s GDP is expected to grow at 6.4 per cent in FY25, close to its decadal average. For FY26, growth is projected to be between 6.3 per cent and 6.8 per cent.
• Agriculture: The agricultural sector is expected to grow by 3.8 per cent in FY25, driven by robust Kharif production. Total Kharif food grain production for 2024 is expected to reach a record 1647.05 lakh metric tonnes.
• Industrial Growth: The industrial sector is estimated to grow by 6.2 per cent in FY25, supported by construction and utility services, though manufacturing exports have slowed due to weak global demand.
• Services Sector: Services exports surged by 12.8 per cent between April–November FY25, showcasing strong performance in sectors like finance, real estate, and public administration.
• Inflation: Retail inflation softened to 4.9 per cent in April–December 2024, with food inflation rising slightly to 8.4 per cent. Inflation is expected to align with the 4 per cent target by FY26.
• Capital Expenditure (Capex): Government capex grew by 8.2 per cen in July–November 2024, and continued infrastructure investments are seen as key to sustaining growth.

Other Notable Developments:

• Exports: Overall exports grew by 6 per cent during April-December 2024, with services exports leading the charge.
• Foreign Direct Investment (FDI): Gross FDI inflows increased by 17.9 per cent year-on-year, reaching $55.6 billion.
• Foreign Exchange Reserves: As of December 2024, India’s forex reserves were $640.3 billion, enough to cover 10.9 months of imports.
• Unemployment: India’s unemployment rate decreased to 3.2 per cent in 2023-24 from 6 per cent in 2017-18.
• Structural Reforms and Future Prospects:
• Deregulation and Economic Freedom: The Survey advocates for systematic deregulation and reform of the Ease of Doing Business (EoDB) framework to boost India’s SME sector and improve competitiveness.
• Infrastructure: Continued investment in infrastructure is crucial to sustain high growth. Notable improvements were made in railway connectivity and port capacity in FY25.
• Green Energy: Capacity additions in solar and wind power increased by 15.8 per cent year-on-year in December 2024, underscoring the government’s commitment to renewable energy.

Social Sector:

• Health and Education: Government expenditure on health has risen, with a decrease in out-of-pocket health expenses. The education sector is focused on achieving the goals set by the National Education Policy 2020 through various initiatives.
• MSMEs: A Rs 50,000 crore Self-Reliant India Fund was launched to provide equity funding to MSMEs, encouraging growth and scalability.

Challenges and Risks:

• Global Economic Environment: Global uncertainties, such as geopolitical risks and commodity price fluctuations, remain a challenge for growth.
• Internal Risks: Domestic factors, such as the pace of capital goods sector investments and rural demand recovery, will play a critical role in sustaining growth.
• India’s economic outlook for the next few years is positive, driven by steady growth in sectors like agriculture, industry, and services, alongside strong foreign investment and improving inflation. 
• The government’s focus on infrastructure, renewable energy, and economic reforms is crucial for sustaining high growth, with deregulation and enhancing competitiveness being central to India’s long-term economic vision.

GEO-ECONOMIC FRAGMENTATION REPLACING GLOBALISATION WORLDWIDE WITH BACKSLIDING OF ECONOMIC INTEGRATION: ECONOMIC SURVEY 2024-25

• Worldwide, we see a backsliding of economic integration with geo-economic fragmentation (GEF) replacing globalisation. Economic realignments and readjustments are imminent”, states the Economic  Survey 2024-25, tabled by Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman in the Parliament today.
• The Survey defines ‘geo-economic fragmentation'' as a policy-driven reversal of global economic integration often guided by strategic considerations. This process encompasses different channels, including trade, capital, and migration flows.
• In a re-enactment of the cold war era, countries are once again getting grouped into two blocs and phrases like ‘friend-shoring’ have come to play centre-stage in global policymaking.
• Tensions over trade, technology standards, and security have been growing for many years, undermining growth and trust in the current global economic system. Therefore, fragmentation - economic, social and cultural - is a direct consequence of the imposition of a ''one-size-fits-all'' emission, as well as social and labour standards by western nations. These developments have growth implications
• As per figures released by the World Trade Organization (WTO) as part of the WTO Director-General''s annual overview of global trade developments, there is a sharp rise in the coverage of trade-restrictive measures by WTO members between mid-October 2023 and mid-October 2024, compared to the last Trade Monitoring Report in November 2023. As per estimates, the value of trade covered by the 169 new trade-restrictive measures introduced between October 2023 and October 2024 is USD 887.7 billion, which is half a trillion dollars more than the value of trade covered by restrictions introduced in the preceding year, which stood at USD 337.1 billion.
• IMF observes that trade fragmentation is much more costly because, unlike the start of the cold war when goods trade to GDP was 16 per cent, the ratio stands at 45 per cent today. Less trade implies less knowledge diffusion, which could also be reduced by fragmentation of cross-border direct investment.
• The impact of GEF is seen in global FDI flows, which are increasingly concentrated among geopolitically aligned countries, particularly in strategic sectors. This relocation of FDI increases the vulnerability of several emerging markets and developing economies.
• The output losses associated with this FDI relocation emerging from friend-shoring and re-shoring are especially severe for emerging markets and developing economies. They face heightened restrictions from advanced economies, which are their major sources of FDI.  
• The Economic Survey points out the emergence of China as a dominant force in the global manufacturing and energy transition ecosystems. It has gained a strategic advantage leveraging its competitiveness and economic policy to access and control key resources recognised today as critical for global supply chains.
• UNIDO projects that China will account for 45 per cent of all global manufacturing, singlehandedly matching or outmatching the US and its allies. Economic Survey also points out the current dominance of China in energy transition technologies. China’s share of solar panels (polysilicon, ingots, wafers, cells, and modules) exceeds 80 per cent in all the manufacturing stages. China also houses nearly 80 per cent of the world''s battery manufacturing capacity, pivotal to the energy transition.
• About 60 per cent of the world''s wind installed capacity is sourced from China.      
• The Economic Survey 2024-25, tabled by Finance Minister Nirmala Sitharaman in Parliament , highlights the backsliding of economic integration with geo-economic fragmentation replacing globalisation.
• The decades since the 1980s witnessed significant globalisation, marked by remarkable shifts in global trade, investment, and economic activity.
• The global population grew from 4.4 billion in 1980 to eight billion in 2022, with urbanisation rates rising from 39 per cent in 1980 to 57 per cent in 2022, fuelling economic activity and connectivity. In 1980, global trade accounted for about 39 per cent of world GDP. By 2012, this share had risen to 60 per cent, reflecting the deep integration of global markets.
• Global Foreign Direct Investment (FDI) inflows grew from $54 billion in 1980 to over $1.5 trillion in 2019, showcasing the increasing role of multinational corporations in cross-border investments.
• The global economy grew from $11 trillion in 1980 to over $100 trillion in 2022.
• These statistics illustrate the profound changes globalisation has brought, driving economic integration and altering the global economic landscape. 
• But, the next two decades are more likely to be about economic fragmentation.
• The global economy is at a significant juncture where long-held principles and practices are being re-evaluated and, in some cases, losing their relevance. Adding to this shift is China’s prominent role in global supply chains, which continues to reshape the economic landscape. 
•  As a result, many countries now operate in an environment markedly different from what they were accustomed to, with traditional rules being reconsidered and uncertainty surrounding what might replace them.

What is ‘geo-economic fragmentation’?

• ‘Geo-economic fragmentation’ can be defined as a policy-driven reversal of global economic integration often guided by strategic considerations. This process encompasses different channels, including trade, capital, and migration flows.
• Despite the benefits of integration, hyper-globalisation has also brought about associated complacencies. People have been left behind as industries have changed amid global competition. 
• Rising geopolitical tensions and the breakout of war have further intensified these underlying fissures in the global economy. 
• In a re-enactment of the Cold War era, countries are once again getting grouped into two blocs and phrases like friend-shoring have come to play centre-stage in global policy making. 
• Tensions over trade, technology standards, and security have been growing for many years, undermining growth and trust in the current global economic system. 
• Therefore, fragmentation — economic, social and cultural — is a direct consequence of the imposition of a ‘one-size-fits-all’ emission, as well as social and labour standards by western nations. These developments have growth implications.
• The nature and threat of geo-economic fragmentation are augmented by the fact that basic institutional structures that safeguard the principles of multilateralism also find themselves at a crossroads.

Rise in trade-restrictive measures

• The consequences and costs of geo-economic fragmentation are propagated via all the channels whereby countries engage with each other economically. 
• Trade is the main channel through which fragmentation is reshaping the global economy. The capacity of trade to incentivise within-industry reallocation and generate productivity gains is getting increasingly stifled. This is most evident in the increase in the trade-restrictive measures imposed by countries. 
• As per figures released by the World Trade Organisation (WTO) as part of the WTO Director-General’s annual overview of global trade developments, there is a sharp rise in the coverage of trade-restrictive measures by WTO members between mid-October 2023 and mid-October 2024, compared to the last Trade Monitoring Report in November 2023.
• As per estimates, the value of trade covered by the 169 new trade-restrictive measures introduced between October 2023 and October 2024 is $887.7 billion, which is half a trillion dollars more than the value of trade covered by restrictions introduced in the preceding year, which stood at $337.1 billion.
• The International Monetary Fund (IMF) observes that trade fragmentation is much more costly this time because, unlike the start of the Cold War when goods trade to GDP was 16 per cent, now that ratio is 45 per cent. 
• Less trade implies less knowledge diffusion, a key benefit of integration, which could also be reduced by fragmentation of cross-border direct investment. 
• One way to visualise trade restrictiveness is to quantify the trade coverage of new import-restrictive measures, apart from the number of restrictive measures presented earlier.
• Fundamental shifts in global economic engagement are underway with the proliferation of trade and investment restrictions. Between 2020 and 2024, over 24,000 new restrictions related to trade and investments have gone into place globally. 
• The impact of this shift in global structural forces is reflected in global trade growth, which has slowed down significantly, and signs of secular stagnation in the global economy are beginning to emerge.

Relocation of FDI

• The impact of geo-economic fragmentation is seen in global FDI flows, which are increasingly concentrated among geopolitically aligned countries, particularly in strategic sectors. This relocation of FDI increases the vulnerability of several emerging markets and developing economies. 
• The output losses associated with this FDI relocation emerging from friend-shoring and re-shoring are especially severe for emerging markets and developing economies. They face heightened restrictions from advanced economies, which are their major sources of FDI.

China gains strategic advantage

• China is a dominant force in the global manufacturing and energy transition ecosystems. It has gained a strategic advantage leveraging its competitiveness and economic policy to access and control key resources recognised today as critical for global supply chains. 
• The effects of the rise of China as a manufacturing colossus are seen in automobile (especially electric vehicles) manufacturing, mining and refining capacity for critical minerals (copper, lithium, nickel, cobalt, graphite, etc) and in clean energy equipment, etc. 
• China’s rise in the global auto market has disrupted the long-term incumbents in economies like Germany and Japan, and it dominates the global distribution of critical minerals and other economic resources, creating potential dependencies for posterity. 
• Courtesy of these developments, the world’s modus operandi of outsourcing manufacturing to China pursued vigorously in the globalisation era is poised for a reset.
• Over the last decade, global solar photovoltaic cell (PV) manufacturing capacity has increasingly moved from Europe, Japan and the United States to China, which has invested more than $50 billion in new PV supply capacity — ten times more than Europe.
• About 60 per cent of the world’s wind installed capacity is sourced from China. China also houses nearly 80 per cent of the world’s battery manufacturing capacity, pivotal to the energy transition.
• On the solar front, China controls the supply of primary materials, manufacturing, installed capacity, and recycling capacity and produces at least 80 per cent of the main components of PVs.
• China’s vertical integration across the entire electric vehicle (EV) supply chain, from mining to EV manufacturing, has enabled it to retain its global dominance in this sector. 
• It is also pertinent to note that about 70 per cent of the world’s rare earth minerals, which are critical resources for high-storage batteries, are processed by Chinese companies.

The need for amplifying deregulation agenda in India

• The global economy is now transitioning to a phase where the traditional, fundamental policy levers that were once effective may no longer be applicable or even relevant. 
• Across the world, the focus of policy making globally has shifted inwards. The promise of shared benefits from a globalised world with open trade, free flow of capital and technology, and sanctity for rules of the game may be behind us. 
• Amidst this new and emerging global reality, the best way to succeed with these structural reforms is to start relying on the internal engines and domestic levers of growth, focusing on a central element – the economic freedom of individuals and organisations to pursue legitimate economic activity. 
• Unburdened by licensing, inspection and compliance requirements, the people and small enterprises of India, with their high aspirations and intrinsic inventiveness, will find answers to the pressing challenges of growth, employment and development.
• Lowering the cost of business through deregulation will make a significant contribution to accelerating economic growth and employment amidst unprecedented global challenges.
• Accelerating and amplifying the deregulation agenda already underway in the last 10 years is the need of the hour. Also, every state in the country can learn from the best practices of other states in different areas so that all progress in unison.
• Strategic and systematic deregulation can catalyse growth, innovation, and competitiveness.
• With deregulation, the Small and Medium Enterprises (SME) sector can help the states weather economic shocks, enable India to realise its manufacturing aspirations, attract long-term investments, and encourage growth.
• The current tendencies in the rest of the world necessitate that India redoubles its efforts to boost exports and attract investment. 
• The need to find growth avenues in an export-challenged, environment-challenged, energy-challenged, and emissions-challenged world means we need to act on deregulation with a greater sense of urgency.The right balance of regulation and freedom can unleash the creative and productive capacities of India''s small and medium entrepreneurs, leading to innovation, greater competition, and overall prosperity. 
• By empowering small businesses, enhancing economic freedom, and ensuring a level playing field, governments can help create an environment where growth and innovation are not only possible but inevitable.

In Odisha, coal dust is clogging leaves and blocking carbon uptake

• The Bengal Nagpur Railway had been tasked by the British Indian government with developing rail networks in eastern and central India. In 1900, when its workers were digging in Jharsuguda, now a district in Odisha, they stumbled upon large coal deposits.
•  Nine years later, Jharsuguda’s first coal mine was established and a century later the region was producing more than 15 million tonnes of coal in a year.
• Coal is a fossil fuel produced by the decomposition of dead plants trapped in layers of soil.
• Around three-fourths of India’s electricity is produced by coal-fired power plants. It’s also critical in the iron, steel, cement, and fertiliser industries. India is one of the largest producers and consumers of coal worldwide, second only to China.
• The Bengal Nagpur Railway had been tasked by the British Indian government with developing rail networks in eastern and central India. In 1900, when its workers were digging in Jharsuguda, now a district in Odisha, they stumbled upon large coal deposits.
•  Nine years later, Jharsuguda’s first coal mine was established and a century later the region was producing more than 15 million tonnes of coal in a year.
• Coal is a fossil fuel produced by the decomposition of dead plants trapped in layers of soil. Around three-fourths of India’s electricity is produced by coal-fired power plants. It’s also critical in the iron, steel, cement, and fertiliser industries. India is one of the largest producers and consumers of coal worldwide, second only to China.
•  Coal isn’t easy to exclude from sustainable development

A patina of dust

• In Jharsuguda, most coal mines are open-cast. Miners here start at the surface of the soil, removing soil and rocks to expose the coal deposits. This is more cost-effective than underground mining, which requires digging tunnels to access the deposits.
• But open-cast mining pollutes the air more. The dust from blasting rocks, drilling holes in the ground, and transporting the coal and rock waste disperses through the air and can choke lungs when inhaled.
• The dust also settles on the leaves of plants nearby. When this happens, stomata — the small pores on leaves through which plants exchange carbon dioxide, water vapour, and oxygen — are clogged, affecting photosynthesis and temperature regulation in the plants.
• Estimating the impact of mining dust on nearby vegetation requires researchers to collect a large number of dust-laden leaves from plants spread in the area surrounding a mine. With the dust spreading as far as 30 km away from the mining site, this is a Herculean task.
• In a October 2024 study by scientists , reported using freely available data from several satellites to investigate how plants are affected by mining dust.
• The data suggest the dust has significant effects on the ability of vegetation to absorb carbon dioxide.
•  “The study emphasises the importance of tackling dust pollution to protect vegetation and promote sustainable urban and industrial development.”
• Eyes in the sky
• The study was performed by Avinash Kumar Ranjan, who undertook the project as a part of his doctoral research at NIT Rourkela.
• To do this, used data from two satellites, Landsat-8 and -9, and two satellite clusters, Sentinel-2 and PlanetScope. The US Geological Survey and NASA launched the Landsat satellites in 2013 and 2021 while the European Space Agency launched Sentinel-2B (which supplied data for the study) in 2017 and Planet Labs launched PlanetScope in 2016-2022.
• Light falling on leaves is composed of different wavelengths: we can see some (blue, green, red) but not others (e.g. infrared). The leaves absorb some of these wavelengths and reflect the rest.
• Like a camera snaps our photographs by capturing the visible light reflected by our bodies, satellites can capture images of an area in different wavelengths using special instruments.
• When dust settles on leaves, it changes how much of a certain wavelength of light the leaves reflect. This changes the images of an area captured by a satellite for that particular wavelength.
• By comparing satellite images of areas farther from the coal mines with those that were closer, the researchers could estimate the amount of dust settling on leaves.
• To validate their estimates, the team also visited two sites in Jharsuguda and collected 300 leaf samples with dust on their surfaces. In their laboratory, they weighed each dusty leaf, and brushed the dust off and weighed the leaf again.
•  The difference between the two readings yielded another estimate of the amount of dust settling on plant leaves around the coal mines.
• Finally, they used statistical methods to find that the actual readings were remarkably close to those calculated from satellite data, demonstrating that satellite images could be used to estimate the amount of mining dust settling on the local flora.
•  “Incorporating measurements from the field strengthens the credibility” of estimates derived from remote-sensing data, he added. 

Dusty leaf, sick plant

• The researchers also used statistical models to correlate the amount of dust on leaves with vital physiological processes. For the latter, they used readings from two other space-based instruments called ECOSTRESS and MODIS. Their data can be used to compute the temperature of plants in an area and the amount of water vapour they release, both in high resolution.
• The team’s models suggested that plants with one gram of mining dust on their leaves absorbed “approximately 2-3 grams less carbon per square meter of area,” Gorai said.
• While the amount might seem small for an individual plant, “when you multiply it across large areas of forests or vegetation near mining sites, the loss of carbon absorption becomes significant over time,”
• part from being important for photosynthesis in plants, carbon absorption lowers the amount of carbon dioxide in the air. But when dust clogs the stomata, the plant absorbs less carbon and leaves more carbon dioxide in the atmosphere. This could worsen global warming over time.
• Another effect of clogged stomata is that plants become less able to exude water vapour in a process called transpiration. Plants that transpire well are able to maintain their temperature better; those that don’t become warmer.
• “When leaves are too hot, they struggle to photosynthesise efficiently,” Gorai explained. “Over time, this can lead to stunted growth or even the death of plants.” This then leads to long-term damage to local ecosystems.
• Dash and Gorai also said their study provides a quick and effective way for governments to monitor dust pollution in and around coal mines, identify hotspots, and implement timely measures to prevent long-term damage to surrounding vegetation and local ecosystems.Such measures could include water sprays and dust barriers.