Current Affairs 14 April 2025
Content: Buddhist monks protest against 75-year-old law that administers sacred site of Bodh Gaya Urban consumers are worried about their income levels Will Trump’s tariffs bring in a recession? India, Africa maritime engagement exercise begins off Tanzania coast DRDO tests laser weapon system that can disable missiles and drones Buddhist monks protest against 75-year-old law that administers sacred site of Bodh Gaya Historical & Religious Significance Mahabodhi Temple: Located in Bodh Gaya, Bihar, where Siddhartha Gautama attained enlightenment under the Bodhi tree. UNESCO World Heritage Site: Recognized since 2002; attracts global Buddhist pilgrims. Religious Layers: Hindus view Buddha as an incarnation of Vishnu; temple also houses Hindu elements like Shaivite mutt. Relevance : GS 1(Society , Heritage , Culture) Legal & Administrative Background Bodh Gaya Temple Act, 1949: Enacted to resolve Hindu-Buddhist disputes over temple control. BTMC Composition: Includes 4 Buddhists, 4 Hindus, with the Gaya District Magistrate as ex-officio chairperson (post religion-neutral since 2013). Historical Precedents: 1990s: Attempt by Lalu Yadav govt. to replace BT Act with a Buddhist-majority control bill — failed to pass. Current Protests Started: February 12, 2025. Organisers: All India Buddhist Forum (AIBF), backed by Bhim Army and other Dalit-Buddhist groups. Demands: Repeal of the BT Act. Full control of temple by Buddhists alone. Removal of non-Buddhist members from temple management. Financial Concerns Accusations: Disputes allegedly driven by control over temple donations and funds. FCRA Violation: In 2023, BTMC fined ₹80 lakh for FCRA violations. Transparency Issue: Annual report link on BTMC website is non-functional. Donations in Protest: Protestors circulating multiple bank accounts for contributions—raising concerns. Political & Legal Landscape Supreme Court Case: 2012 petition to repeal the BT Act still pending. Recent Political Debate: Parliament discussed the issue during Waqf Amendment Bill (2025) debates. Identity, History & Symbolism Historical Conflict: As far back as 1895, Sri Lankan monk Anagarika Dharmapala challenged Hindu control. Dr. Ambedkar’s Legacy: Protestors draw ideological inspiration from Ambedkar’s conversion to Buddhism. Cultural Erosion Claim: AIBF alleges Buddhist identity, culture, and rights are being diluted under the BT Act. Way Forward Legal Resolution Awaited: District Magistrate and BTMC officials advise awaiting SC verdict. Government Inaction: No significant policy shift despite decades of Buddhist demands. Need for Dialogue: Deep-rooted religious, legal, and political tensions require multi-stakeholder engagement and mutual respect. Urban consumers are worried about their income levels Context : Divergence Between Employment Optimism and Income Pessimism 35.5% of urban respondents in March 2025 reported an improvement in employment opportunities over the past year. However, only 23.8% said their income levels had increased, reflecting a gap of nearly 12 percentage points. Indicates jobs are available, but they are not translating into higher earnings. Relevance : GS 1(Urbanization), GS 3(Economy) Reversal of Income Optimism Since March 2024 Following recovery post-pandemic, optimism about income began declining from March 2024. This downward trend continued into March 2025, suggesting persistent income stagnation. Less than 1 in 4 urban respondents reported any rise in income. Rural Income Pessimism More Pronounced 29.9% of rural respondents reported an income decline, compared to 23.3% in urban areas. This underscores the economic vulnerability in rural and semi-urban areas, even as job optimism was more urban-centric. The newly introduced RBI rural survey captures this emerging divergence in sentiment. Rising Commodity Prices Pressuring Households Over 90% of urban consumers perceived a rise in commodity prices compared to a year ago. This perception aligns with broader inflationary trends, affecting basic consumption baskets. Spending Has Increased, But Not Due to Higher Incomes Over 80% of urban respondents said their spending had increased over the past year. Since incomes are stagnant, increased spending is likely due to price inflation rather than lifestyle upgrades. Implies a strain on household budgets, possibly eroding savings or increasing credit dependency. Deterioration in Overall Economic Sentiment Only 34.7% of urban consumers felt the overall economic situation improved compared to the previous year. This is the lowest percentage in over a year, showing a disconnect between employment gains and quality of life. Suggests that macroeconomic recovery is not being felt at the household level. Key Takeaways Urban employment scenario shows signs of recovery, but quality of employment (in terms of wages) is questionable. Rising cost of living amid stagnant wages is causing consumer stress and economic pessimism. Rural India is facing deeper income-related challenges, possibly due to agricultural distress or lack of diversified rural employment. The mismatch between employment optimism and economic pessimism suggests a K-shaped recovery, with uneven benefits across sectors and regions. Will Trump’s tariffs bring in a recession? Backdrop: Shift from Globalisation to Protectionism The U.S., historically the strongest proponent of free trade, has reversed roles under Trump, imposing blanket tariffs of at least 10% on all imports from April 2, 2025. This aggressive stance threatens the global trade architecture crafted post-WWII and nurtured by the U.S. itself. Relevance : GS 2(International Relations) Trump’s Tariff Offensive New U.S. tariff regime: Baseline: 10% tariff on all imports. Higher “reciprocal” tariffs: EU – 20% India – 27% Vietnam – 46% China – 145% Already imposed: Mexico and Canada – 25% Markets reacted negatively: Sharp stock market declines due to fears of a prolonged trade war. April 9 rollback: A 90-day pause on tariffs (except China), signalling economic distress and uncertainty. Economic Impact on the U.S. Import cost surge: Example – A product from Vietnam now costs $146 vs. $103 earlier (due to tariff rise from 3% to 46%). Domestic inflation threat: Higher consumer prices due to costlier imports. Burden on ordinary Americans, especially low-income households. Domestic manufacturers may not be ready to fill the supply gap quickly – supply shocks and shortages possible. The move may trigger a recession through: Reduced consumption due to high inflation. Retaliatory tariffs from major trading partners. Global demand contraction. Global Retaliation and Recession Risks China’s counterattack: 125% tariffs on U.S. goods. Vows to “fight till the end”. Global trade contraction risk: As the world’s two largest economies lock horns, global supply chains may disintegrate. Other countries, dependent on export-led growth, especially vulnerable. China’s Strategic Response Long-term decoupling strategy: Share of exports in GDP down: 35% (2012) ➝ 19.7% (2023). Exports to the U.S. as % of total exports down: 21% (2006) ➝ 16.2% (2022). Focused investments in: AI, EVs, R&D, and tech self-sufficiency. Production relocation strategy: Built deep East Asian supply chains (e.g., in Vietnam) to bypass U.S. tariffs. India’s Dilemma Major U.S. trade partner: India exports $91 billion worth to the U.S. (2022). A tariff hike of 27% could hurt critical export sectors like textiles, engineering goods. Muted direct impact: Exports form only ~21.8% of India’s GDP → impact manageable. No increase in tariffs on India’s pharma and services exports – a relief. Challenges remain: India’s manufacturing sector is still weak. Tariff protection + PLI scheme not enough to spur robust industrial revival. Lack of coherent industrial policy and low private investment hurt competitiveness. Broader Implications Dollar dominance and trade deficit: U.S. trade deficit: $1.31 trillion (2022), or 5% of GDP. Sustained by global demand for the dollar (especially China buying U.S. Treasury bonds). Political motivation: Tariffs as a political tool to win working-class support, especially from traditional industries like steel and autos. Trump leveraging anti-globalisation sentiments for electoral gains. Conclusion Trump’s tariffs = high-stakes gamble: Aimed at reviving domestic manufacturing but risking inflation, retaliation, and recession. Potentially triggers global economic slowdown, especially if China and U.S. decouple further. Countries like India must reassess industrial strategies, diversify export baskets, and enhance competitiveness to withstand global shocks. India, Africa maritime engagement exercise begins off Tanzania coast Strategic & Diplomatic Significance Inaugural AIKEYME Exercise: Marks a new chapter in India-Africa naval collaboration, showcasing India’s proactive maritime diplomacy in the Western Indian Ocean Region. India-Tanzania as Co-hosts: Reflects deepening bilateral defence ties, especially in maritime security. Supports India’s MAHASAGAR Vision: Aligns with PM Modi’s initiative – Mutual and Holistic Advancement for Security and Growth Across Regions, aimed at regional stability and inclusive development in the Indo-Pacific and Africa. Relevance : GS 2(Internal Relations) Participating Nations 10 Nations in Total: India + Tanzania (Co-hosts) 8 African nations: Comoros, Djibouti, Kenya, Madagascar, Mauritius, Mozambique, Seychelles, South Africa. Significance: Indicates shared concerns and willingness among Indian Ocean littoral African states to address maritime security challenges collectively. Naval Assets & Deployment INS Chennai (Destroyer) and INS Kesari (Landing Ship Tank – Large): Showcase India’s blue-water navy capabilities and amphibious operational reach. INS Sunayna (Patrol Vessel) as Indian Ocean Ship (IOS) SAGAR: Embodies India’s Security and Growth for All in the Region (SAGAR) policy. Carries 44 naval personnel from 9 friendly foreign nations, promoting multilateral crew training and collaboration. Objectives & Activities Key Objective: Develop collaborative solutions to regional maritime challenges—piracy, trafficking, IUU (Illegal, Unreported, and Unregulated) fishing, climate security, and disaster response. Enhance Interoperability: Train navies for combined maritime operations and promote interoperability via multilateral drills. Ceremonial Diplomacy: Joint guard of honour, national anthem renditions by both Tanzanian and Indian bands—strengthens military diplomacy. Broader Geostrategic Context India’s Maritime Outreach to Africa: Counters increasing Chinese presence in African ports and waters. Promotes India as a reliable and benign security partner in the Indo-African maritime domain. Indian Ocean Region (IOR) Focus: Reasserts India’s central role in IOR security architecture. Reinforces maritime domain awareness, capacity building, and cooperative security. Long-Term Implications Institutionalisation of AIKEYME: Could evolve into a regular platform for India-Africa maritime cooperation, akin to Milan or IBSAMAR. Boosts Defence Industrial Collaboration: May open avenues for naval hardware exports, maintenance, and training with African partners. Soft Power Projection: Strengthens India’s image as a security provider and development partner in Africa. DRDO tests laser weapon system that can disable missiles and drones Technological Milestone DRDO successfully tested Mk-II(A) Laser-Directed Energy Weapon (DEW) in Kurnool, Andhra Pradesh. It demonstrates India’s entry into the elite club of nations possessing high-power laser weapon technology. Part of India’s push for indigenous, futuristic, and asymmetric warfare capabilities. Relevance : GS 3(Internal Security , Technology, Defence) Capabilities of the DEW Mk-II(A) High-energy laser system designed to engage and destroy aerial targets, such as: Fixed-wing drones Incoming missiles Surveillance equipment (sensors, antennae) Exhibits full-spectrum capability, including: Multiple drone attack interception Precision destruction at long range Lethal response within seconds of target detection Key Features Lightning-speed engagement due to laser traveling at speed of light. Targets are identified via: Radar detection Electro-Optic (EO) system Laser beam causes structural failure or destroys sensitive components, including warheads. Cost Efficiency Operating cost is extremely low — equivalent to the price of a few litres of petrol. Offers a cost-effective, low-maintenance alternative to conventional ammunition-based defense. Strategic Significance Strengthens India’s counter-drone and air defense architecture amid rising drone threats. Helps in reducing dependence on kinetic weapons and foreign arms imports. Can be deployed in border areas, naval ships, and for critical infrastructure protection. Broader Implications Enhances India’s reputation as a technology leader in defense innovation. Promotes Make in India and Atmanirbhar Bharat initiatives in high-end defense R&D. Could revolutionize rules of engagement in future warfare by reducing collateral damage and ammunition logistics. Location & Test Environment Test conducted at National Open Air Range, Kurnool, a dedicated testing facility for advanced defense systems. Demonstration in real-world conditions boosts combat readiness of the technology