UPSC CURRENT AFFAIRS – 5 February 2025
Kartavya Desk Staff
UPSC CURRENT AFFAIRS – 5 February 2025 covers important current affairs of the day, their backward linkages, their relevance for Prelims exam and MCQs on main articles
InstaLinks : Insta Links help you think beyond the current affairs issue and help you think multidimensionally to develop depth in your understanding of these issues. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background.
Table of Contents
GS Paper 2 : (UPSC CURRENT AFFAIRS – 5 February (2025)
• Election Commission Neutrality
Election Commission Neutrality
GS Paper 3:
• Household Consumption Expenditure Survey (HCES) 2023-24
Household Consumption Expenditure Survey (HCES) 2023-24
Content for Mains Enrichment (CME):
• Glacier Meltdown
Glacier Meltdown
Facts for Prelims (FFP):
• The United States Agency for International Development (USAID)
The United States Agency for International Development (USAID)
• Beggar-Thy-Neighbour Policies
Beggar-Thy-Neighbour Policies
• State Emblem of India
State Emblem of India
• Tribhuvan Sahkari University
Tribhuvan Sahkari University
• Jevons Paradox
Jevons Paradox
• Debt-to-GDP Ratio
Debt-to-GDP Ratio
Mapping:
• Santorini Island
Santorini Island
UPSC CURRENT AFFAIRS – 5 February 2025
#### GS Paper 2 :
Election Commission Neutrality
Syllabus: Constitutional Bodies
Source: IE
Context: The Election Commission of India (ECI) has faced allegations of bias and erosion of neutrality, particularly in handling recent elections like Delhi 2025, raising concerns about its independence and transparency.
About Election Commission of India (ECI)
• Constitutional Basis: Established under Article 324 of the Indian Constitution.
• Composition: A three-member body consisting of the Chief Election Commissioner (CEC) and two Election Commissioners.
• Appointment Process: Previously appointed by the President on the advice of the Prime Minister. Post-2023 Supreme Court ruling (Anoop Baranwal vs Union of India Case, 2023), appointments are made by a selection committee (PM, Leader of Opposition, and Union Cabinet Minister).
• Powers and Functions: Conducts free and fair elections for Lok Sabha, State Assemblies, and President/Vice President. Supervises electoral rolls, voter registration, and model code of conduct. Resolves disputes related to elections.
• Conducts free and fair elections for Lok Sabha, State Assemblies, and President/Vice President.
• Supervises electoral rolls, voter registration, and model code of conduct.
• Resolves disputes related to elections.
Key Functions and Duties of the Election Commission of India
• Electoral Constituency Management: Defines electoral boundaries under the Delimitation Commission Act to ensure fair representation.
• Electoral Roll Preparation and Revision: Updates voter lists to prevent bogus voting and ensure inclusivity.
• Election Schedule and Nomination Scrutiny: Announces poll dates, verifies nominations, and ensures eligibility.
• Political Party Recognition and Symbol Allocation: Registers parties, assigns election symbols, and resolves disputes.
• Model Code of Conduct (MCC) Implementation: Ensures ethical campaigning and prevents government misuse.
Allegations of Bias in ECI:
• Model Code of Conduct Violations: The central dominant party promoted tax exemptions as an election incentive, violating the Model Code of Conduct (MCC).
E.g. Tax exemptions as a “gift for Delhi” during campaigns.
• Politically Influenced Appointments: Since 2010, several bureaucrats with political links have been appointed as election commissioners.
E.g. Ashok Lavasa was sidelined for dissent, and Arun Goel’s abrupt resignation fueled speculation of external pressure.
• Manipulation of Electoral Processes: Assam delimitation was alleged to have favored the ruling party by redrawing constituency boundaries strategically.
E.g. Surat 2024 election saw an uncontested victory in a non-conflict zone, raising concerns over fair competition.
• Lack of Transparency: ECI withheld crucial voter turnout data and weakened disclosure rules, affecting public trust.
• Biased Electoral Calendar: The four-phase polling schedule in Odisha was allegedly designed to align with the national party’s campaign plans.
ECI Has Maintained Neutrality:
• Constitutional Autonomy and Judicial Oversight: Operates under Article 324, with Supreme Court checks.
• Three-Member Decision-Making Mechanism: Ensures collective decision-making to reduce bias.
• Voter Awareness and Electoral Reforms: Implements SVEEP program to boost voter participation.
• Digital and Technological Advancements: Introduced EVM tracking and digital voter IDs for transparency.
Way Ahead:
• Electoral Finance Reforms: Implement stricter disclosure norms for political donations to enhance transparency and accountability in electoral funding as per Indrajith Gupta Committee.
• Enhanced MCC Enforcement: Enforce stricter penalties and real-time monitoring to prevent violations of the Model Code of Conduct during elections.
• Public Engagement & Awareness: Expand voter education programs to promote informed participation and awareness of electoral rights nationwide.
• Strengthening EVM Transparency: Mandate 100% VVPAT verification in disputed constituencies to ensure public trust in electoral outcomes.
Conclusion:
The ECI must uphold its constitutional mandate to ensure free and fair elections. Addressing allegations of bias and enhancing transparency will restore public trust and strengthen India’s democratic foundations.
Insta Links:
• Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. (UPSC-2022)
#### UPSC CURRENT AFFAIRS – 5 February 2025 GS Paper 3:
Household Consumption Expenditure Survey (HCES) 2023-24
Syllabus: Economics
- •Source: PIB*
Context: The Ministry of Statistics and Programme Implementation (MoSPI) has released the Household Consumption Expenditure Survey (HCES) 2023-24, highlighting increasing MPCE (Monthly Per Capita Expenditure) and declining urban-rural consumption gaps.
About Household Consumption Expenditure Survey (HCES):
What is HCES?
• A nationwide survey conducted to assess household consumption patterns, living standards, and expenditure trends.
• Provides essential data for economic planning, poverty measurement, and updating the Consumer Price Index (CPI).
Survey Details:
• Conducted by: National Statistical Office (NSO) under MoSPI.
• Methodology: Multistage stratified sampling, covering both rural and urban areas.
• Coverage: 2023-24 Sample: 2,61,953 households (1,54,357 rural, 1,07,596 urban). Conducted across all States and Union Territories, except a few remote villages in Andaman & Nicobar Islands.
• 2023-24 Sample: 2,61,953 households (1,54,357 rural, 1,07,596 urban).
• Conducted across all States and Union Territories, except a few remote villages in Andaman & Nicobar Islands.
• Survey Period: August 2023 – July 2024.
Key Findings of HCES 2023-24:
• Rising Household Consumption Expenditure
• MPCE (Monthly Per Capita Expenditure) at Current Prices: Rural: ₹4,122 (2023-24) vs. ₹3,773 (2022-23). Urban: ₹6,996 (2023-24) vs. ₹6,459 (2022-23).
• Rural: ₹4,122 (2023-24) vs. ₹3,773 (2022-23).
• Urban: ₹6,996 (2023-24) vs. ₹6,459 (2022-23).
• Urban-Rural Consumption Gap: Declined to 70% in 2023-24 from 71% in 2022-23 and 84% in 2011-12.
• Declined to 70% in 2023-24 from 71% in 2022-23 and 84% in 2011-12.
• State-wise Trends: Odisha (14%) saw the highest increase in rural MPCE, while Punjab (13%) saw the highest rise in urban MPCE. Kerala recorded the lowest urban-rural MPCE gap (18%), while Jharkhand had the highest (83%).
• Odisha (14%) saw the highest increase in rural MPCE, while Punjab (13%) saw the highest rise in urban MPCE.
• Kerala recorded the lowest urban-rural MPCE gap (18%), while Jharkhand had the highest (83%).
• Decline in Consumption Inequality:
• Gini Coefficient (measure of consumption inequality) declined: Rural India: 0.237 (2023-24) vs. 0.266 (2022-23). Urban India: 0.284 (2023-24) vs. 0.314 (2022-23).
• Rural India: 0.237 (2023-24) vs. 0.266 (2022-23).
• Urban India: 0.284 (2023-24) vs. 0.314 (2022-23).
• All 18 major states recorded a decline in consumption inequality.
• Share of Expenditure on Food and Non-Food Items:
• Rural Areas: 47% of MPCE spent on food, with highest expenditure on beverages (9.84%), milk (8.44%), and vegetables (6.03%).
• Urban Areas: 40% of MPCE spent on food, highest on beverages (11.09%), milk (7.19%), and vegetables (4.12%).
• Non-food expenditure dominated by transport, medical expenses, durable goods, and rent.
• Variation in MPCE Across Social Groups:
• Highest MPCE among ‘Others’ category, followed by OBCs, SCs, and STs.
• MPCE for STs increased from ₹3,016 (rural) and ₹5,414 (urban) in 2022-23 to ₹3,363 (rural) and ₹6,030 (urban) in 2023-24.
• Variation in MPCE Across Occupations:
• Highest MPCE in rural areas: Salaried non-agricultural households (₹5,005).
• Highest MPCE in urban areas: ‘Others’ category (₹9,159).
Positive Outcomes from the Report:
• Rising Consumption Levels: Increased MPCE in all states, indicating improved living standards and economic activity.
• Reduction in Consumption Inequality: Declining Gini coefficient suggests better income distribution.
• Narrowing Urban-Rural Gap: Indicates rising rural purchasing power, reducing economic disparity. Stronger Impact of Social Welfare Programs: Higher imputed MPCE shows better access to subsidized goods and services.
• Better Policy Insights: Provides updated data for economic planning, poverty measurement, and CPI computation.
Negative Findings from the Report:
• Persisting Urban-Rural Gap: Though declining, rural MPCE remains significantly lower than urban MPCE.
• High Consumption Disparity Across States: States like Jharkhand and Chhattisgarh still show large urban-rural divides.
• Limited Growth in Maharashtra & Karnataka: Lowest increase in MPCE (rural: 3%, urban: 5%), indicating economic stagnation.
• High Share of Expenditure on Non-Essential Goods: Rising spending on processed foods and beverages over essential food grains.
• Vulnerable Social Groups Still Lagging: STs and SCs continue to have lower MPCE compared to OBCs and General category.
Way Ahead:
• Targeted Rural Economic Growth: Enhance employment opportunities, infrastructure, and digital connectivity to boost rural income.
• Bridging State-Level Disparities: State-specific interventions for states with high urban-rural MPCE gaps.
• Sustainable Consumption Pattern: Promote balanced spending on essentials, healthcare, and savings.
• Strengthening Social Welfare Programs: Expand direct benefit transfers (DBT) and rural livelihood missions to further reduce inequality.
• Data-Driven Policy Formulation: Utilize HCES data for poverty alleviation, inflation control, and inclusive economic growth.
Conclusion:
The Household Consumption Expenditure Survey 2023-24 reflects positive economic trends, including rising MPCE, declining consumption inequality, and narrowing urban-rural gaps. However, persistent regional and social disparities highlight the need for targeted policy interventions. Leveraging HCES insights can drive inclusive growth, ensuring equitable economic prosperity across India.
Insta Links:
• MOSPI Report
Consider the following statements: (UPSC-2020)
• The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
• The WPI does not capture changes in the prices of services, which CPI does.
• The Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct?
• 1 and 2 only
• 1, 2 and 3
Answer: a)
#### UPSC CURRENT AFFAIRS – 5 February 2025 Content for Mains Enrichment (CME)
Glacier Meltdown
Context: A recent study revealed that 110 glaciers in Arunachal Pradesh’s eastern Himalayas have disappeared over 32 years (1988-2020), with glacial cover shrinking by 309.85 sq. km.
About Glacier Meltdown:
What is Glacier Meltdown?
• Glacial retreat occurs when glaciers melt faster than the accumulation of new ice and snow, leading to reduced ice cover and formation of glacial lakes.
• It is a key indicator of global climate change, affecting water resources, ecosystems, and disaster risks.
Reasons Behind Glacier Meltdown
• Rising Global Temperatures: The eastern Himalayas are warming faster than the global average (0.1°–0.8°C per decade).
• Increased Carbon Emissions: Accelerates atmospheric heating, leading to faster ice melting.
• Changing Precipitation Patterns: More rainfall instead of snowfall, disrupting glacial accumulation.
• Anthropogenic Activities: Deforestation, infrastructure projects, and tourism add to local warming.
• Black Carbon Deposits: From burning fossil fuels, reduces glacier reflectivity, increasing heat absorption.
Impacts of Glacier Meltdown
• Glacial Lake Outburst Floods (GLOFs): Rising water levels in glacial lakes increase the risk of catastrophic floods.
• Disruption of River Systems: Himalayan rivers, such as Teesta and Brahmaputra, face irregular flow patterns, affecting agriculture and hydroelectric projects.
• Threat to Biodiversity & Ecosystems: Shrinking glaciers impact flora, fauna, and water-dependent species.
• Water Scarcity & Food Security: Reduced glacier-fed water availability affects irrigation and drinking water supply.
Relevance in UPSC Exam Syllabus
• GS Paper 1 – Geography & Climate Change
• Glacial retreat and its role in climate change affecting monsoons, river basins, and ecosystems. Himalayan geography and vulnerabilities, including impact on permafrost regions and water cycles.
• Glacial retreat and its role in climate change affecting monsoons, river basins, and ecosystems.
• Himalayan geography and vulnerabilities, including impact on permafrost regions and water cycles.
• GS Paper 3 – Environment & Disaster Management
• Climate change and disaster risk reduction, including threats of Glacial Lake Outburst Floods (GLOFs). Sustainable development policies, adaptation strategies, and environmental governance.
• Climate change and disaster risk reduction, including threats of Glacial Lake Outburst Floods (GLOFs).
• Sustainable development policies, adaptation strategies, and environmental governance.
• Essay Paper – Environmental Degradation & Sustainable Development
• Role of climate policies, international treaties (Paris Agreement, IPCC reports), and India’s commitments. Importance of glacier conservation and impact of Himalayan degradation on Indian monsoon systems.
• Role of climate policies, international treaties (Paris Agreement, IPCC reports), and India’s commitments.
• Importance of glacier conservation and impact of Himalayan degradation on Indian monsoon systems.
#### UPSC CURRENT AFFAIRS – 5 February 2025 Facts for Prelims (FFP)
The United States Agency for International Development (USAID)
Source: TOI
Context: The closure of the United States Agency for International Development (USAID) under the Trump administration has raised concerns about setbacks in health, climate, and development programmes in India.
About United States Agency for International Development (USAID):
• It is an independent US government agency responsible for civilian foreign aid and development assistance.
• It is one of the largest aid agencies in the world, accounting for over half of all US foreign assistance.
• Headquarters: Washington, D.C., USA.
• Established: 1961 via an executive order by President John F. Kennedy under the Foreign Assistance Act.
• Aim of USAID:
• To alleviate poverty, promote education and healthcare, and strengthen democracy and governance in developing nations.
• To provide humanitarian assistance, disaster relief, and support for climate resilience and economic development.
• Key Functions of USAID:
• Funding NGOs, foreign governments, and international organizations for development projects.
• Supporting economic growth, food security, and climate action.
• Providing emergency humanitarian relief in crisis-affected countries.
• Promoting human rights, democracy, and governance reforms.
• Contribution to India: Healthcare Initiatives: Helped reduce maternal and child mortality, tackled tuberculosis (TB), HIV, and sanitation issues. Water & Sanitation (WASH): Played a key role in making 1,000 cities open-defecation-free and reducing diarrheal deaths. Clean Energy & Climate Resilience: Supported solar energy deployment, green bonds, and sustainable forestry projects.
• Healthcare Initiatives: Helped reduce maternal and child mortality, tackled tuberculosis (TB), HIV, and sanitation issues.
• Water & Sanitation (WASH): Played a key role in making 1,000 cities open-defecation-free and reducing diarrheal deaths.
• Clean Energy & Climate Resilience: Supported solar energy deployment, green bonds, and sustainable forestry projects.
Beggar-Thy-Neighbour Policies
Source: TH
Context: The concept of beggar-thy-neighbour policies has gained renewed attention due to rising protectionism and trade wars, particularly under populist regimes like the Trump administration in the U.S.
About Beggar-Thy-Neighbour Approach:
• What is Beggar-Thy-Neighbour Policy? Economic policies aimed at benefiting a country’s economy at the expense of others, often through protectionist measures like tariffs, quotas, or currency devaluation. Coined by Adam Smith in his 1776 book, “*The Wealth of Nations”*, to critique mercantilist trade practices.
• Economic policies aimed at benefiting a country’s economy at the expense of others, often through protectionist measures like tariffs, quotas, or currency devaluation.
• Coined by Adam Smith in his 1776 book, “*The Wealth of Nations”*, to critique mercantilist trade practices.
• Features: Tariffs and Quotas: Imposing high tariffs or strict import quotas to protect domestic industries. Currency Wars: Deliberate devaluation of the domestic currency to boost exports and reduce imports. Trade Surplus Focus: Aimed at achieving a trade surplus by increasing exports and decreasing imports.
• Tariffs and Quotas: Imposing high tariffs or strict import quotas to protect domestic industries.
• Currency Wars: Deliberate devaluation of the domestic currency to boost exports and reduce imports.
• Trade Surplus Focus: Aimed at achieving a trade surplus by increasing exports and decreasing imports.
• Significance: Short-Term Gains: Protects domestic industries, preserves jobs, and supports national security. Global Trade Disruptions: Can lead to retaliatory measures, causing a decline in global trade and investment. Historical Impact: Contributed to the Great Depression in the 1930s due to retaliatory tariffs and competitive devaluations.
• Short-Term Gains: Protects domestic industries, preserves jobs, and supports national security.
• Global Trade Disruptions: Can lead to retaliatory measures, causing a decline in global trade and investment.
• Historical Impact: Contributed to the Great Depression in the 1930s due to retaliatory tariffs and competitive devaluations.
• Pros and Cons:
• Pros: Protects nascent industries and ensures national security. Boosts domestic demand by making exports cheaper and imports costlier.
• Protects nascent industries and ensures national security.
• Boosts domestic demand by making exports cheaper and imports costlier.
• Cons: Leads to global trade wars, harming all economies involved. Harms domestic consumers by increasing prices and reducing purchasing power. Retaliatory measures can exacerbate economic downturns, as seen during the Great Depression.
• Leads to global trade wars, harming all economies involved.
• Harms domestic consumers by increasing prices and reducing purchasing power.
• Retaliatory measures can exacerbate economic downturns, as seen during the Great Depression.
Insta links:
State Emblem of India
Source: TH
Context: The Union Home Ministry has directed states to prevent the improper depiction of the State Emblem of India, emphasizing the mandatory inclusion of the motto “Satyameva Jayate” in Devanagari script.
About State Emblem of India:
• Adoption: Adopted as the State Emblem of India on January 26, 1950 from the Sarnath Lion Capital of Ashoka.
• Features of the State Emblem:
• Three Visible Lions: The fourth lion is hidden from view. Dharma Chakra: Positioned at the center of the abacus. Animal Depictions: Bull (Right): Represents the zodiac sign Taurus, symbolizing Buddha’s birth. Horse (Left): Symbolizes Kanthaka, the horse Buddha rode while renouncing princely life. Elephant (East): Represents Queen Maya’s dream of a white elephant entering her womb. Lion (North): Symbolizes Buddha’s enlightenment and Dharma propagation. No Bell-shaped Lotus: Omitted in the official State Emblem. Motto ‘Satyameva Jayate’: Taken from the Mundaka Upanishad, meaning ‘Truth Alone Triumphs’, inscribed below the emblem in Devanagari script. Crowned by Dharma Chakra: Represents Buddha’s first sermon (Dharmachakra Pravartana).
• Three Visible Lions: The fourth lion is hidden from view.
• Dharma Chakra: Positioned at the center of the abacus.
• Animal Depictions: Bull (Right): Represents the zodiac sign Taurus, symbolizing Buddha’s birth. Horse (Left): Symbolizes Kanthaka, the horse Buddha rode while renouncing princely life. Elephant (East): Represents Queen Maya’s dream of a white elephant entering her womb. Lion (North): Symbolizes Buddha’s enlightenment and Dharma propagation.
• Bull (Right): Represents the zodiac sign Taurus, symbolizing Buddha’s birth.
• Horse (Left): Symbolizes Kanthaka, the horse Buddha rode while renouncing princely life.
• Elephant (East): Represents Queen Maya’s dream of a white elephant entering her womb.
• Lion (North): Symbolizes Buddha’s enlightenment and Dharma propagation.
• No Bell-shaped Lotus: Omitted in the official State Emblem.
• Motto ‘Satyameva Jayate’: Taken from the Mundaka Upanishad, meaning ‘Truth Alone Triumphs’, inscribed below the emblem in Devanagari script.
• Crowned by Dharma Chakra: Represents Buddha’s first sermon (Dharmachakra Pravartana).
• Legal Provisions:
• State Emblem of India (Prohibition of Improper Use) Act, 2005: Regulates authorized use of the emblem. State Emblem of India (Regulation of Use) Rules, 2007: Specifies the permitted authorities and usage rules.
• State Emblem of India (Prohibition of Improper Use) Act, 2005: Regulates authorized use of the emblem.
• State Emblem of India (Regulation of Use) Rules, 2007: Specifies the permitted authorities and usage rules.
• Penalty for Violation: Up to 2 years imprisonment or Fine up to ₹5,000 for unauthorized use.
• Up to 2 years imprisonment or
• Fine up to ₹5,000 for unauthorized use.
Insta links:
• Knowindia.india.gov.in
Tribhuvan Sahkari University
Source: TOI
Context: The Tribhuvan Sahkari University Bill, 2025 was introduced in Lok Sabha to establish India’s first national cooperative university at IRMA, Gujarat.
About Tribhuvan Sahkari University:
• What it is?
• India’s first national cooperative university, focused on education, training, and research in the cooperative sector. Declared an institution of national importance.
• India’s first national cooperative university, focused on education, training, and research in the cooperative sector.
• Declared an institution of national importance.
• Proposed at: Institute of Rural Management Anand (IRMA), Gujarat.
• To develop skilled professionals for managerial, technical, and administrative roles in cooperative societies. To promote standardized cooperative education across India.
• To develop skilled professionals for managerial, technical, and administrative roles in cooperative societies.
• To promote standardized cooperative education across India.
• Features:
• Sector-Specific Schools: Dairy, fishery, sugar, banking, rural credit, cooperative finance, cooperative marketing, cooperative laws, and multi-state cooperatives. Affiliated Colleges Nationwide: 4-5 in states with high cooperative presence, 1-2 in others. Digital Learning: To integrate with SWAYAM e-learning platform. Global Collaboration: To partner with universities, colleges, and cooperative institutions for research and development.
• Sector-Specific Schools: Dairy, fishery, sugar, banking, rural credit, cooperative finance, cooperative marketing, cooperative laws, and multi-state cooperatives.
• Affiliated Colleges Nationwide: 4-5 in states with high cooperative presence, 1-2 in others.
• Digital Learning: To integrate with SWAYAM e-learning platform.
• Global Collaboration: To partner with universities, colleges, and cooperative institutions for research and development.
About Institute of Rural Management Anand (IRMA):
• Established in: 1979, by Verghese Kurien, founder of India’s White Revolution.
• Location: Anand, Gujarat.
• Aim: To provide professional education in rural management and develop leaders for the cooperative sector.
• Functions:
• Education & Training: Specialized courses in rural management and cooperative development. Policy Research: Studies on cooperative governance, rural development, and financial inclusion. Capacity Building: Strengthening cooperative institutions and organizations. Collaboration: Works with National dairy development board (NDDB), Government of India, and international agencies.
• Education & Training: Specialized courses in rural management and cooperative development.
• Policy Research: Studies on cooperative governance, rural development, and financial inclusion.
• Capacity Building: Strengthening cooperative institutions and organizations.
• Collaboration: Works with National dairy development board (NDDB), Government of India, and international agencies.
• Future Role Post-University Establishment:
• IRMA will become a school within Tribhuvan Sahkari University and serve as a Centre of Excellence for Rural Management. It will retain its identity and autonomy under the university framework.
• IRMA will become a school within Tribhuvan Sahkari University and serve as a Centre of Excellence for Rural Management.
• It will retain its identity and autonomy under the university framework.
Insta links:
• Indias-cooperative-movement
Jevons Paradox
Source: TE
Context: The Jevons Paradox has resurfaced in economic discussions after the DeepSeek AI launch led to a selloff in global tech stocks, raising concerns over AI chip demand.
About Jevons Paradox:
• What is Jevons Paradox?
• It states that when a resource becomes more efficient and cheaper to use, overall consumption increases instead of decreasing.
• It states that when a resource becomes more efficient and cheaper to use, overall consumption increases instead of decreasing.
• Theory & Origin:
• Proposed by William Stanley Jevons in 1865, observing that improved coal efficiency led to higher coal consumption instead of savings.
• Proposed by William Stanley Jevons in 1865, observing that improved coal efficiency led to higher coal consumption instead of savings.
• Factors Influencing Jevons Paradox:
• Cost Reduction: Lower usage costs drive higher demand. Increased Accessibility: Efficiency makes resources more widespread. Economic Growth: Higher productivity spurs industrial expansion. Elastic Demand: When demand is highly responsive to price changes, consumption rises sharply.
• Cost Reduction: Lower usage costs drive higher demand.
• Increased Accessibility: Efficiency makes resources more widespread.
• Economic Growth: Higher productivity spurs industrial expansion.
• Elastic Demand: When demand is highly responsive to price changes, consumption rises sharply.
• Significance in AI & Energy:
• Artificial Intelligence: Efficient AI chips may increase AI model adoption instead of reducing chip demand. Energy Efficiency: More efficient technologies can lead to higher total energy consumption due to increased use. Policy Implications: Governments must combine efficiency with regulatory measures (taxes, quotas) to avoid resource overuse.
• Artificial Intelligence: Efficient AI chips may increase AI model adoption instead of reducing chip demand.
• Energy Efficiency: More efficient technologies can lead to higher total energy consumption due to increased use.
• Policy Implications: Governments must combine efficiency with regulatory measures (taxes, quotas) to avoid resource overuse.
Insta links:
• Artificial-intelligence-and-its-significance
Debt-to-GDP Ratio
Context: The Union Government has announced a shift from fiscal deficit to debt-to-GDP ratio as the primary fiscal anchor from FY 2026-27, targeting a 50±1% ratio by 2031.
About Debt-to-GDP Ratio:
• It represents the proportion of a country’s total debt to its GDP, indicating economic stability and repayment capacity.
• Formula:
What it represents?
• A higher ratio signals increased risk of default and financial instability.
• A lower ratio indicates better fiscal health and investor confidence.
• Debt sustainability depends on growth rates, fiscal deficit trends, and interest payments.
Limitations of Debt-to-GDP Ratio
• Does Not Reflect Debt Composition: Ignores internal vs. external debt dynamics.
• Fails to Consider Fiscal Policy: Does not capture spending efficiency or investments.
• No Direct Correlation with Default Risk: Some high-debt countries remain solvent due to economic strength.
Need for India’s Shift to a New Fiscal Anchor
• Long-term Fiscal Stability: Debt-based targets ensure sustainable government borrowing.
• Greater Policy Flexibility: Reduces reliance on annual fiscal deficit limits.
• Transparency & Accountability: Addresses off-budget borrowings and improves public finance management.
• Global Alignment: Aligns India’s fiscal strategy with international best practices.
• Growth-Enhancing Expenditure: Ensures public spending focuses on productive sectors without excessive debt accumulation.
Insta links:
• FRBMA -policies
#### UPSC CURRENT AFFAIRS – 5 February 2025 Mapping:
Santorini Island
Source: TN
Context: Santorini, a popular Greek island, has been placed on high alert after experiencing over 200 undersea earthquakes in four days, with magnitudes up to 4.6.
About Santorini Island:
• Located in: Southern Aegean Sea, part of the Cyclades archipelago in Greece.
• Controlled by: Greece (part of the Thira regional unit).
• Volcanic Activity: Home to the Santorini Caldera, one of the most active volcanic centers in the South Aegean Volcanic Arc. Nearby volcanoes: Nea Kameni and Palaia Kameni (uninhabited islands within the caldera). Historically known for the Minoan eruption (around 3,600 years ago), one of the largest volcanic eruptions in recorded history.
• Home to the Santorini Caldera, one of the most active volcanic centers in the South Aegean Volcanic Arc.
• Nearby volcanoes: Nea Kameni and Palaia Kameni (uninhabited islands within the caldera).
• Historically known for the Minoan eruption (around 3,600 years ago), one of the largest volcanic eruptions in recorded history.
• Tectonic Plates: Situated near the convergence of the African Plate and the Aegean Sea Plate. Frequent seismic activity due to subduction and tectonic movements in the region.
• Situated near the convergence of the African Plate and the Aegean Sea Plate.
• Frequent seismic activity due to subduction and tectonic movements in the region.
Insta links:
• Earthquake-in-Taiwan
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