- AMID GLOBAL TUMULT RUPEE BREACHES 87 AGAINST DOLLAR
SUBJECT: ECONOMY
- The Indian Rupee depreciated by 0.6% (49 paise)against the U.S. Dollar, breaching ₹87 per USD.
- Intra-day low: ₹87.3; Closed at ₹87.11.
- Depreciation triggered byTrump’s tariffson Canada, Mexico, and China.
- Dollar Index (DXY)
- Measures USD strength against 6 major world currencies(Euro, Yen, Pound, CAD, Krona, Swiss Franc).
- Dollar Index rose above 109, indicating USD appreciation, making imports costlier for India.
- Government & RBI’s Approach
- No artificial exchange rate control–RBI only manages volatility.
- India does not use currency depreciation for trade benefits but focuses on improving export competitiveness.
- Union Budget aims to lower tariff barriers to support exports.
- Economic Impact
- Higher import costs→ Crude oil, electronics, and machinery become expensive, increasing inflation.
- Export boost→ IT, textiles, pharma gain from a weaker rupee, making Indian goods cheaper abroad.
- Macroeconomic risk→ Volatile rupee may impact investment confidence and external debt servicing
2. GREEN AND CLEAN
SUBJECT: ENVIRONMENT
- India’s Clean Energy Transition
- Budgetary allocation to MNRE increased from ₹1,535 crore (2015) to ₹22,626 crore (2025).
- PM-KUSUM (2019): Aims for solar irrigation pumps & grid connected solar plants on farmland.
- Challenges in Solar Expansion
- Slow deployment of PM-KUSUM (less than0.5 GW installed).
- High reliance on Chinese solar module imports.
- PLI Schemes & Energy Storage
- ₹18,100 crore PLI for advanced chemistry cell battery storage.
- ₹4,500 crore PLI for solar module manufacturing(19,500 MW target).
- Concerns Over Import Dependence
- 40% Basic Customs Duty (BCD) on solar modules & 25% on solar cells led to higher prices and slower adoption.
- 70% of India’s power output still relies on coal, despite 46% installed RE capacity.
3. THE CAUSE AND EFFECTS OF THE U.S WITHDRAWAL FROM WHO
SUBJECT: INTERNATIONAL
- Trump Announced U.S. Exit from WHO on January 20, 2025
- Accused WHO of bias towards China & mishandling COVID-19.
- U.S. previously contributed 15% of WHO’s total funding.
- Funding Crisis for WHO
- U.S. funds24% of essential healthcare services&20% of polio eradication programs.
- China & EU may step up contributions, altering WHO dynamics.
4. THE PROMISES AND PROBLEMS OF USING BACTERIA AGAINST PLASTIC
SUBJECT: SCIENCE
- Bacterial Plastic Degradation: Scientists developing bacteria and enzymes to break down plastic waste.
- Startup Initiative:Manjushree Hydrextrusion working on PET plastic biodegradation.
- Challenges in Bacterial Plastic Degradation
- Slow Process: Natural degradation takes months.
- Selective Breakdown: Many bacteria work only on specific plastics (e.g., PET).
- Recycling Concerns: Some enzymes alter plastic properties, making recycling difficult.
- Scientific & Industrial Approaches
- Enzyme-based solutions: Break plastics into reusable compounds.
- Carbios (France): Developed fast plastic degradation methods(reducing breakdown time from hours to minutes).
- Global Research: Universities and biotech firms working on scaling up bacterial plastic degradation
5. HOW WILL THE GOVT PRODUCE THE REQUIRED FUEL ETHANOL?
SUBJECT: AGRICULTURE
- Production Requirement: 1,100 crore litres of fuel ethanol needed annually.
- Sources of Ethanol
- Sugar-based ethanol: 400 crore litres (from sugarcane and molasses).
- Grain-based ethanol: 700 crore litres (from rice, broken rice, maize).
- Distillery Capacity: Expanded to1,600 crore litres with government support.
- Role of Maize in Ethanol Production
- India’s maize production:42 million tonnes (2024-25).
- 9 million tonnes to be used for ethanol.
- Maize imports rose to$188 million (April-Nov 2024)due to restrictions on sugar-based ethanol production.
- Concerns: Diverting maize to ethanol may impact food security and poultry feed costs.
- Economic Impact
- Producing100 crore litres of ethanolsaves₹6,000 crore in oil imports.
- India’s annual oil import billis₹10.5 lakh crore
