- ECONOMY
WHAT DO SCIENTISTS MAKE OF THE BUDGET
- The Government of India has launched several scientific programs and initiatives to boost research and development (R&D) across various sectors. Here is a detailed list of some key programs, initiatives, and the funding provided:
- Major National Advanced Technology Missions
- Supercomputing Mission
- Objective: To enhance India’s computing capabilities.
- Funding: ₹4,500 crore over seven years.
- Achievements: Installation of high-performance computing systems in various institutions.
- Cyber-Physical Systems Mission
- Objective: To develop technologies integrating physical and digital systems.
- Funding: ₹3,660 crore over five years.
- Achievements: Establishment of innovation hubs and research centers.
- Quantum Technologies Mission
- Objective: To advance quantum computing, communication, and cryptography.
- Funding: ₹8,000 crore over five years.
- Achievements: Development of quantum simulators and secure communication systems.
- Space and Geospatial Policies
- Private Sector Participation in Space
- Objective: To encourage private sector involvement in space missions.
- Achievements: Successful launch of private satellites and establishment of space startups.
- Geospatial Data Policy
- Objective: To liberalize geospatial data usage.
- Achievements: Increased accessibility to geospatial data for various applications
2. ECONOMY
THE SOCIAL BENEFITS OF STOCK MARKET SPECULATION
- Here are the broader economic and social benefits of stock market speculation and trading, which can lead to better public policy understanding:
- Efficient Capital Allocation: Investors who make capital gains are those who allocate their capital efficiently into businesses whose future cash flow justifies the investment.
- Efficient capital allocation leads to better resource allocation in the economy, which is crucial during times of crisis (e.g., prioritizing healthcare over less important sectors during a pandemic).
- Market Liquidity: Active trading, including short-term trading, ensures sufficient liquidity in the market.
- Liquidity is essential for long-term investors to easily buy or sell their stocks.
- Accurate Pricing: A highly liquid market ensures that the shares of businesses are priced as accurately as possible.
- Accurate pricing helps companies with promising prospects to raise funds more easily.
- Encouragement of Investment: An active market, such as the stock exchange, encourages early investors to invest in businesses by providing them with an opportunity to sell their shares in the future.
- Risk Management through Derivatives: Derivatives allow investors to transfer risk among themselves.
- This is particularly beneficial for individuals like farmers who may not have the risk appetite to forecast future prices of their produce.
- Social Benefits of Speculation:
- Speculative trading, both in stocks and derivatives, provides crucial liquidity and availability of instruments for fundamental investors who want to manage risk.
3. GEOGRAPHY
RS BEGINS DISCUSSION ON MINISTRY OF NEW AND RENEWABLE ENERGY
- The establishment of the Ministry of New and Renewable Energy (MNRE) in India is crucial for several reasons, reflecting the country’s strategic priorities in energy, environment, and sustainable development.
- Here are the key reasons: Energy Diversification: Reduce dependency on fossil fuels. Enhance energy security with indigenous renewable sources.
- Climate Change Mitigation: Lower carbon emissions to meet Paris Agreement commitments. Promote environmental sustainability.
- Economic Growth and Job Creation: Drive growth in the renewable energy sector. Create jobs and stimulate rural development.
- Technological Innovation: Focus on R&D for efficient renewable technologies. Facilitate adoption of green technologies like hydrogen and smart grids.
- Policy and Regulatory Framework: Ensure cohesive policy implementation and regulatory oversight. Align projects with national energy goals and standards.
- Global Leadership and Cooperation: Position India as a leader in global renewable energy efforts. Foster international partnerships and knowledge sharing.
- Energy Access and Equity: Provide affordable, reliable energy to all, especially in underserved areas. Support marginalized communities with clean energy solutions.
4. INTERNATIONAL
SENSEX FALLS 2.7% AMID GLOBAL SELL – OFF RUPEE HITS A NEW LOW
- Fears of U.S. Recession – Economic Indicators: Concerns about the U.S. economy tipping into a recession have been fueled by various economic indicators such as declining consumer spending, slowing industrial production, and weak job growth.
- Federal Reserve Policies: The Federal Reserve’s monetary policies, including interest rate hikes to combat inflation, have raised fears of an economic slowdown. Global Sell-Off
- Market Sentiment: The global market sentiment has been weak, leading to a broad-based sell-off across various stock markets.
- Contagion Effect: The decline in major indices like Japan’s Nikkei, Dow Jones Industrial Average, S&P 500, and Nasdaq Composite has had a contagion effect, impacting markets worldwide, including India. Sectoral Weakness
- Metals and Realty: Specific sectors such as metals and realty have seen sharp corrections. This could be due to a combination of factors including declining commodity prices, regulatory changes, and reduced demand.
- Company-Specific Issues: Companies like Tata Motors, Adani Ports, Tata Steel, State Bank, Power Grid, and Maruti have led the losses, possibly due to their own financial performance, exposure to global markets, or sectoral challenges. Foreign Fund Outflows
- FII Withdrawals: Foreign Institutional Investors (FIIs) have been pulling out funds from the Indian market, contributing to the equity sell-off.
- Risk Aversion: In times of global uncertainty, investors tend to move their funds to safer assets, leading to outflows from emerging markets like India. Currency Depreciation
- Rupee Weakness: The Indian rupee fell to its all-time low of 84.09 against the U.S. dollar. A weaker rupee makes Indian assets less attractive to foreign investors, exacerbating the sell-off.
- Trade Deficit: A widening trade deficit and higher import costs due to a weaker rupee can also negatively impact investor sentiment. Geopolitical Tensions
- Global Uncertainty: Ongoing geopolitical tensions, such as trade wars, conflicts, and sanctions, add to the uncertainty and risk aversion in global markets. Inflation Concerns
- Rising Prices: High inflation rates globally have led to increased costs for businesses and reduced consumer purchasing power, impacting corporate earnings and market valuations. Technical Factors
- Market Corrections: After a prolonged period of market gains, technical corrections are natural. Overbought conditions can lead to profit-taking and a subsequent decline in indices
5. INTERNATIONAL
UN SEEKS URGENT DE-ESCALATION IN WEST ASIA, IRAN RESERVES RIGHT TO STRIKE BACK
- Escalation of Gaza Conflict – October 7 Attacks: The conflict intensified following the October 7 attacks by Hamas on Israel, leading to a full-scale war in Gaza.
- Daily Cross-Border Fire: Israel is now engaged in daily cross-border fire with Hezbollah in Lebanon, further escalating the situation. Assassinations and Retaliations
- Killing of Ismail Haniyeh: Iran has claimed the “legal right to punish” Israel for the killing of Hamas’s political leader Ismail Haniyeh in Tehran. Strike on Beirut: Israel admitted to carrying out a strike on Beirut, resulting in the death of Hezbollah military chief Fuad Shukr.
- International Concerns – UN High Commissioner’s Statement: Volker Turk, the UN High Commissioner for Human Rights, has called for urgent de-escalation to prevent a wider conflict in the Middle East.
- Global Diplomacy: U.S. President Joe Biden is holding crisis talks with his national security team and engaging in diplomacy with regional leaders like Jordan’s King Abdullah II to mitigate the situation.
- Iran’s Potential Involvement – Support for Hezbollah and Hamas: Iran, a known backer of Hezbollah and Hamas, is feared to potentially join the conflict, which could lead to a broader regional war.
- Statements from Iran: Iran’s statements about punishing Israel have heightened fears of an expanded conflict. Humanitarian Crisis
- Mass Graves in Gaza: Gaza’s Civil Defence agency reported receiving 80 unidentified bodies from Israel, which were buried in a mass grave. This highlights the severe humanitarian impact of the conflict.
- Civilian Casualties: The ongoing conflict has resulted in significant civilian casualties and displacement, exacerbating the humanitarian crisis in the region. Geopolitical Implications
- Regional Stability: The conflict has the potential to destabilize the entire region, affecting neighboring countries and global geopolitical dynamics.
- International Response: The international community is closely monitoring the situation, with various countries and organizations calling for restraint and de-escalation.
ONE LINER
- 70 books to be added to Vasippu Iyyakkam programme which aims to school children to read books beyond their textbook
- Total MMR of Tamil Nadu – 72% of MMR happen in rural and 28% only in urban, reports released by Health Department
