DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 14th March 2025
Archives (PRELIMS & MAINS Focus) POLICIES OF DONALD TRUMP Syllabus: Mains – GS 2 Context: During his campaign, Donald Trump promised a new era of prosperity. Now, two months into his presidency, he cautions that lowering prices will be challenging and warns of short-term disruptions before restoring wealth to the U.S. Background: – A chorus of economic analysts have warned in recent days that the risks of recession due to Trump’s policies are rising. Key takeaways Threatening/imposing import tariffs Trump has threatened import tariffs on all countries. Tariffs will most likely raise prices that US consumers pay. This will both raise inflation (the rate at which the general price level rises over the past year) and hit affordability (which takes into account the cumulative effect of all past inflations). Tariffs will also hit US firms as their import costs will go up, meaning they will not be able to produce in a cost-effective manner. Canada, the European Union, and China all are retaliating with their own tariffs. This will also hit the demand for US goods, and thus ultimately harm US producers. Threatening to expand us territory Trump has repeatedly threatened to expand American territory by including sovereign countries as new “states” in the union. For example, Canada and Greenland. Such rhetoric has made all countries aware of an imperialist US. This extinguishes co-operation and trust built over decades, and blows away the US reputation as the global protector of national sovereignty and democratic values. Backtracking on security guarantees The White House’s backtracking on US security guarantees to allies — through NATO and other ways — has alarmed many. Trump’s treatment of Ukraine President and his decision to withhold military intelligence in the middle of a war with Russia was unprecedented. The bottom line is that Trump’s stance has made the United States’ long-standing allies reconsider if Washington can be trusted anymore. Cutting government spending Trump aims to reduce the federal workforce and cut government spending by eliminating programs and even entire departments. A big reason for American exceptionalism, especially after the Global Crisis of 2008 and the Covid, has been the big spending by US governments, fuelled by a loose monetary policy where the US printed money to fuel demand. (The US could do so because the US dollar is trusted and used the world over.) The government used this money to expand its welfare programmes. Thus, a sudden and sharp cut in government spending could take away the impetus it was providing to domestic demand and growth. Deporting illegal immigrants Donald Trump has amped up action against illegal immigrants, deporting thousands. If millions are pulled out of the workforce over a short period, it can raise labour constraints. US producers may find that wages costs have risen far in excess of their ability to pass on the cost to their buyers. Cutting taxes, initiating deregulation Trump is in favour of cutting taxes, as well initiating massive deregulation. The fact is that the fiscal room for providing tax relief can only happen when the existing spending comes down sharply, otherwise the deficit will continue to balloon. Over the decades, the US had built up regulations that aimed at providing safeguards for consumers and establishing guardrails against corporate malfeasance. Deregulation can then also lead to adverse impacts on the average consumer. Source: Indian Express GREAT NICOBAR ISLAND PROJECT Syllabus: Prelims & Mains – CURRENT EVENT Context: During the ongoing Rajya Sabha session Union Tribal Affairs Minister Jual Oram said that the government has not received any information about objections to the Great Nicobar Infrastructure project. Background: – The Great Nicobar Island (GNI) infrastructure project was conceived by NITI Aayog and launched in 2021. Key takeaways The Great Nicobar Island Development Project is a significant infrastructure initiative by the Government of India, aiming to transform the southern tip of Great Nicobar Island into a strategic hub for commerce, tourism, and defense. Key plans in the project include the construction of an International Container Transshipment Terminal (ICTT), a greenfield international airport with a peak hour capacity to handle 4,000 passengers, a township, and a gas and solar-based power plant. The project is being implemented by the Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO). It aligns with India’s Maritime Vision 2030 and is one of the key projects under the Amrit Kaal Vision 2047. It also gives an opportunity to leverage the strategic location of the island, which is roughly equidistant from Colombo in Sri Lanka to the southwest and Port Klang (Malaysia) and Singapore to the southeast. Additional Information – About Andaman & Nicobar The Andaman and Nicobar Islands are a cluster of 836 islands, split into two groups — the Andaman Islands to the north and the Nicobar Islands to the south — by the 150-km wide Ten Degree Channel. Great Nicobar is the southernmost and largest of the Nicobar Islands, a sparsely inhabited 910-sq-km patch of mainly tropical rainforest in the southeastern Bay of Bengal. Indira Point on the island, India’s southernmost point, is only 90 nautical miles (less than 170 km) from Sabang at the northern tip of Sumatra, the largest island of the Indonesian archipelago. Great Nicobar has two national parks (Campbell Bay National Park and Galathea National Park), a biosphere reserve (Great Nicobar Biosphere Reserve ), small populations of the Shompen and Nicobarese tribal peoples, and a few thousand non-tribal settlers. Source: Indian Express INDIAS CHOICE BETWEEN PROGRESS AND PAROCHIALISM Syllabus: Mains – GS 2 Context: India stands at a critical juncture, caught between the anvil of technological disruption and the hammer of cultural nationalism. While the Union government champions economic independence and global technological leadership – its linguistic policies risk undermining these ambitions. Background: The call by the Rashtriya Swayamsevak Sangh (RSS) chief recently to reject English, western attire, and customs – echoed by Maharashtra’s push for Marathi use/promotion to be mandatory in government offices – reveals a deepening crisis. Key takeaways English, one of India’s official languages, and also the de-facto medium of higher education, remains accessible to just 10% of Indians. This staggering disparity is not incidental but also a product of political choices,
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