CURRENT AFFAIRS
01 May, 2025
1. WORLD BANK’S POVERTY & EQUITY BRIEF REPORT –
• The World Bank’s Spring 2025 Poverty and Equity Brief report praised India for lifting 171 million people out of extreme poverty from 2011-12 to 2022-23, lowering the extreme poverty rate from 16.2% to 2.3%.
What are Poverty and Equity Briefs (PEBs)?
• About: The PEBs, published biannually during the Spring and Annual Meetings of the World Bank Group and International Monetary Fund (IMF).
• Key Development Indicators: Cover various aspects of poverty, using both national poverty lines and international benchmarks (USD 2.15 for extreme poverty, USD 3.65 for lower-middle-income, and USD 6.85 for upper-middle-income).
• Methodology for India: The World Bank’s poverty estimates for India are based on the 2011–12 Consumption Expenditure Survey (CES) and the 2022–23 Household Consumption Expenditure Survey.
What are the Key Highlights of the Poverty and Equity Briefs Report by the World Bank?
• Rural and Urban Poverty Reduction: Extreme poverty in India fell significantly, from 18.4% to 2.8% in rural areas and from 10.7% to 1.1% in urban areas between 2011-12 and 2022-23.
• Statewise Contribution: In 2011-12, the five most populous states- Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh accounted for 65% of India’s extreme poor. By 2022-23, these states contributed to two-thirds of the overall decline in extreme poverty.
• Decline in Multidimensional Poverty: The report highlighted a decline in non-monetary poverty, with India’s Multidimensional Poverty Index (MPI) dropping from 53.8% in 2005-06 to 16.4% in 2019-21.
2. SARVAM TO BUILD INDIA’S FIRST INDIGENOUS AI MODEL –
• The Indian government has selected Bengaluru-based start-up Sarvam to develop the country’s first homegrown Artificial Intelligence (AI) Large Language Model (LLM) under the IndiaAI Mission.
• The company is developing three model variants: Sarvam-Large (advanced reasoning), Sarvam-Small (real-time applications), and Sarvam-Edge (compact on-device tasks).
• Sarvam will receive 4,000 Graphic Processing Units (GPUs) for six months under the IndiaAI Mission to build a 70 billion parameter AI model.
• The AI model is not expected to be open-sourced, but aims for population-scale deployment, designed to reason and be fluent in Indian languages.
• This comes at a time when China’s DeepSeek model, known for its low-cost and open-source nature, has significantly disrupted global AI markets, highlighting the urgency for India to establish its own AI infrastructure.
• IndiaAI Mission: Approved in 2024 under the Ministry of Electronics and Information Technology (MeitY), the IndiaAI Mission seeks to drive responsible and inclusive growth of India’s AI ecosystem.
• IndiaAI Mission includes democratizing computer access, enhancing data quality, developing indigenous AI models, nurturing AI talent, fostering industry collaboration, supporting startup funding, and promoting ethical, socially impactful AI.
3. HOW DID INDIA’S ECONOMY RESPOND TO PAST CONFLICTS WITH PAKISTAN? –
Economic Impact of Past India-Pakistan Conflicts 1. The 1999 Kargil War
• Trigger: Pakistani intrusion into Indian territory (Jammu & Kashmir).
Market Reaction
• BSE Sensex dropped 5% in May 1999 due to fear of escalation and post-nuclear test sanctions.
• Pakistan’s KSE-100 fell 7% amid political instability.
GDP Impact
• India’s fiscal deficit rose to 5.1% of GDP.
• Pakistan’s GDP slowed to 4.2%.
Recovery
• Sensex rebounded 20% by year-end, driven by IT boom.
• Pakistan’s recovery was slower due to coup & sanctions.
• Lesson: Short-term volatility, long-term recovery, with India bouncing back faster.
2. The 2001 Parliament Attack
• Trigger: Attack on Indian Parliament by terror outfits.
• Military Response: 1 million troops deployed along the border.
Market Reaction
• Sensex fell 7% in December 2001.
• FIIs withdrew $200 million.
GDP Impact
• India: Growth dipped to 4.8% (2001–02).
• Pakistan: Growth fell to 3.1%.
Bilateral Disruption
• Trade halted (~$250 million).
• Pakistan lost $50 million in overflight revenue.
• Lesson: Economic shocks are amplified by global recessionary trends; diplomacy helped recovery.
3. The 2008 Mumbai Attacks
• Trigger: 26/11 terror attack by Lashkar-e-Taiba; 166 killed.
Market Reaction
• Sensex dropped 4% to ~8,700 points.
• FIIs pulled out $13 billion in 2008.
Sectoral Impact
• Hospitality, real estate, tourism hit hardest.
• Tourism revenue fell 15%, costing $2 billion.
GDP Impact
• India: 6.7% growth in 2008–09.
• Pakistan: Growth slowed to 1.7% amid IMF bailout.
Recovery
• Sensex rebounded 80% in 2009 with stimulus.
• KSE-100 up 35%, but recovery slower.
• Lesson: Terror shocks are sharp but short-lived; India’s domestic demand aids resilience.
4. The 2019 Pulwama–Balakot Crisis
• Trigger: Pulwama attack (40 CRPF personnel killed); Balakot airstrike followed.
Market Reaction
• Sensex dipped 2%, tourism/aviation down 5%.
GDP Impact
• India: Growth slowed to 6.1% in 2019–20.
• Pakistan: Down to 0.5%, impacted by FATF scrutiny.
Trade
• Bilateral trade, already low, shrank further.
Recovery
• India: Sensex up 10% by year-end.
• Pakistan: KSE-100 up 15%, but underlying fragility persisted.
• Lesson: India’s market depth cushions shocks, Pakistan’s structural weaknesses magnify them.
4. FROM EARTH TO ORBIT: SHUBHANSHU SHUKLA’S JOURNEY TO THE ISS BEGINS MAY 29 –
• India is set to mark a historic milestone in its space journey as Group Captain Shubhanshu Shukla will be the first Indian astronaut to fly to the International Space Station (ISS) and the first Indian to enter space in over 40 years.
• He will serve as the pilot of Axiom Mission 4 (Ax-4), a commercial mission organized by Axiom Space and launched via SpaceX. This mission will also carry out scientific experiments, including seven Indian microgravity research projects, and represents a major step in international collaboration and human spaceflight by India.
Why in the News?
• Group Captain Shubhanshu Shukla, an Indian Air Force officer and one of ISRO’s Gaganyaan astronaut-designates, is set to become the first Indian to travel to the International Space Station (ISS) aboard Axiom Mission 4 (Ax-4).
Launch & Crew
• Scheduled launch: May 29, 2025, no earlier than 1:03 p.m. EDT.
• Launch site: NASA Kennedy Space Center, Florida (USA).
• Spacecraft: SpaceX Dragon.
• Duration: Up to 14 days aboard the International Space Station (ISS).
5. PRESIDENT APPOINTS JUSTICE GAVAI AS 52ND CJI OF INDIA –
• On April 30, 2025, President Droupadi Murmu appointed Justice Bhushan Ramkrishna Gavai as the 52nd Chief Justice of India (CJI). He will take oath on May 14, 2025, succeeding Justice Sanjiv Khanna.
• Appointed by President Droupadi Murmu on April 30, 2025.
• Will take oath as 52nd CJI on May 14, 2025.
• Will serve till November 23, 2025.
MCQ QUIZ
Q1. Trends in World Military Expenditure report is published by which organization ?
a) Stockholm International Peace Research Institute (SIPRI)
b) World Bank
c) International Monetary Fund
d) United Nations
Q2. Which Indian ministry organized the seminar on ‘Hard to Reach Population – SMILE (Beggary)’ ?
a) Ministry of Home Affairs
b) Ministry of Health and Family Welfare
c) Department of Social Justice and Empowerment (DoSJE)
d) Ministry of Women and Child Development
Q3. Who was recently awarded the ‘Companion of the Order of Fiji’, the highest civilian honor in Fiji ?
a) Kailash Satyarthi
b) Madhusudan Sai
c) Dr. Devi Shetty
d) Mukesh Ambani
Q4. Which of the following are features of Article 142 of the Indian Constitution ?
1. It empowers the Supreme Court to do “complete justice” in any case before it.
2. It allows the Supreme Court to override statutory laws in the interest of justice.
3. It applies to both civil and criminal matters.
4. It grants High Courts the same power in their jurisdiction.
How many of the above are correct?
a) Only one
b) Only two
c) Only three
d) All four
Explanation-
• Statements 1, 2, and 3 are correct.
• Article 142 is a unique constitutional power given only to the Supreme Court (not High Courts) to ensure “complete justice,” and it applies across legal domains—civil or criminal.
• However, High Courts do not enjoy Article 142 powers, although they have similar inherent powers under Section 482 CrPC for criminal matters.
• Thus, only three statements are correct.
Q5. Consider the following statements regarding India’s defence spending as per SIPRI 2024 report:
1. India is the fifth-largest military spender globally.
2. India spends more on capital procurement than on defence pensions and salaries.
3. India’s defence budget constitutes 2.5% of its GDP.
4. India is the second-largest arms importer in the world.
How many of the above are correct ?
a) Only one
b) Only two
c) Only three
d) All four
Explanation-
• Statements 1 and 4 are correct. India ranks fifth globally in defence spending and remains the second-largest arms importer, reflecting its limited indigenous defence production.
• Statement 2 is incorrect: Only 22% of the defence budget is allocated to capital procurement, while the majority is spent on salaries and pensions.
• Statement 3 is also incorrect: India’s defence spending is 1.9% of GDP, not 2.5%.
• Thus, only two statements are correct.
Answer Key
1 | 2 | 3 | 4 | 5 |
A | C | B | C | B |