UPSC DAILY CURRENT AFFAIRS (19th May,2025)

India’s Northeast – Kolkata Link via Myanmar

Syllabus: GS3/Infrastructure; Economy

Context

• India’s decision to establish a direct link between the Northeast and Kolkata via Myanmar, bypassing Bangladesh, marks a strategic shift in regional connectivity. 

Key Aspects of India’s Northeast & Myanmar

• India shares a 1,643 km land border with Myanmar, connecting Arunachal Pradesh, Nagaland, Manipur, and Mizoram.
  • Myanmar serves as India’s gateway to Southeast Asia, making it vital for trade and connectivity.

Kaladan Multimodal Transit Transport Project (KMTTP)

• It aims to link Kolkata to Mizoram via Sittwe Port (Myanmar) and Paletwa inland waterways.
  • It enables multi-modal cargo flow (sea, river, road).
  • It reduces distance and time compared to the ‘Chicken’s Neck’ corridor (Siliguri).
  • It connects with India’s East-West industrial corridor plans.
• Phases:
  • Kolkata to Sittwe (Sea) – 539 km (Completed)
  • Sittwe to Paletwa (River) – 158 km (Completed)
    • Paletwa to Zorinpui (Road) – 108 km (Partially completed, delayed due to armed conflict in Rakhine State).
  • Zorinpui to Aizawl & Shillong (Road Extension): Underway through the Shillong-Silchar-Zorinpui corridor, approved by MoRTH.

Why is the Northeast-Kolkata Link via Myanmar significant?

• Shift in Connectivity Strategy: Historically, the Northeast has relied on Bangladesh for transit access to Kolkata and other parts of India.
  • India has invested in major connectivity projects like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project (expected to be completed by 2030).
    • These projects aim to boost trade, tourism, and regional integration between India and ASEAN nations.
• Geopolitical Considerations: The decision to bypass Bangladesh comes after Bangladesh’s interim government remark related to Northeast India as ‘landlocked’ and dependent on Dhaka for ocean access.
  • India’s response was to strengthen alternative routes, ensuring trade independence.
• Economic and Strategic Benefits:
  • Reduced Dependency on Bangladesh: The new route eliminates transit fees and bureaucratic hurdles associated with Bangladesh.
  • Boost to Northeast’s Economy: Improved connectivity will enhance trade, tourism, and industrial growth in the region.
  • Strengthening India’s Act East Policy: The Myanmar route aligns with India’s broader strategy to deepen ties with Southeast Asia.
• Security Implications:
  • India’s investments in Myanmar infrastructure also help counter Chinese influence.
  • Presence in western Myanmar contributes to border stability, especially in conflict-prone Chin and Rakhine regions.

Challenges with Myanmar Route

• Insurgency threats (e.g., Arakan Army operations).
• Slow construction progress due to terrain and security issues.
• Chinese infrastructure competition in the same region (Kyaukpyu port, CMEC).

Curbing Bangladeshi Exports via Land Ports

• Ban on Ready-Made Garments via Land Ports: India has barred Bangladeshi ready-made garments from entering through land ports in Tripura, Assam, Meghalaya, and Mizoram.
  • These goods must now be shipped via Kolkata and Mumbai sea ports, where they will undergo mandated inspections.
• Retaliation Against Bangladesh’s Restrictions: Bangladesh had earlier stopped Indian yarn exports through land ports, allowing imports only via sea routes.
  • India’s response aims to counterbalance trade policies that disadvantage Indian exporters.
• Impact on Trade & Economy: Around 93% of Bangladesh’s garment exports to India previously passed through land ports.
  • The new restrictions will likely increase costs for Bangladeshi exporters and shift trade dynamics in the region.

Govt School Enrolment Drops in 23 States

Syllabus: GS2/Education/Governance

Context

• Minutes of meetings held by the Ministry of Education (MoE) with 33 States and UTs show that student enrolment dipped in 23 states.

About

• The drop first came to light late last year in the UDISE+ report for 2023-24, which pointed to a sharp fall of around 1.5 crore in overall school enrolment (government and private) compared to the 2018-19 to 2021-22 average.
  • PM-POSHAN minutes show the trend continuing into 2024-25, triggering fresh concern in the government.
• At least eight witnessed declines exceeding 100,000: led by Uttar Pradesh (21.83 lakh), Bihar (6.14 lakh), Rajasthan (5.63 lakh) and West Bengal (4.01 lakh).

• Compared to 2023-24, Karnataka saw its enrollment fall by around 2 lakh; Assam by 1.68 lakh, Tamil Nadu by 1.65 lakh and Delhi by 1.05 lakh.
• The PM-POSHAN meetings flagged low scheme coverage: In Delhi, the number of students availing midday meals fell by 97,000 in 2024-25 versus 2023-24.
  • In Uttar Pradesh, meal coverage dropped by 5.41 lakh students, by 3.27 lakh in Rajasthan and 8.04 lakh in West Bengal. 
  • Some States reported students bringing their own tiffin.

Possible Reasons for the Decline

• The first is a change in data-collection methodology—from school-wise reporting (just total numbers) to student-wise reporting, this ongoing “data cleansing” may have removed “ghost” entries.
• Several States have suggested enrolment may be moving from government to private schools in the post-Covid years, reversing pandemic-era trends.

Implications

• Nutritional Risk: Lower participation could impact child health and learning outcomes.
• Administrative Gaps: Transition to Aadhaar-based data is essential but may cause temporary disruption.
• Policy Reflection: Need to re-evaluate strategies to maintain enrolment and ensure scheme utilization.

MoE’s Response

• The ministry has expressed “deep concern” and asked states to investigate causes and submit reports by June 30.
• It emphasized on improving the meal coverage and quality assurance for concerns of some students reportedly bringing their own food.

AI and the Rise of the Hourglass Organisation

Syllabus: GS3/ Economy, S&T

In Context

• According to McKinsey, AI could add trillions of dollars to the global economy, potentially enhancing productivity by up to 25% in firms that effectively adopt it.
  • As global businesses shift towards AI-integrated models, a new organisational structure, the hourglass model is gaining prominence.

How is the Hourglass Model different from the Conventional Model?

• Pyramid Model: Conventionally, organisations have a top-heavy leadership, a broad middle management, and a large operational base. It represents a structured hierarchy with a well-defined chain of command, multiple layers of supervision and control.
• Hourglass Transformation: In this model, AI automates coordination, monitoring, and decision-making and thinning the middle layer while enhancing top-level strategy and base-level execution.
  • Gartner forecasts that by 2026, 20% of firms in the West will cut over half their middle managers using AI.
  • Microsoft has recently announced the layoff of approximately 6,000 employees, constituting about 3% of its global workforce.
• Collaborative Base: Frontline workers now work alongside AI systems — increasing speed, efficiency, and adaptability.

Case Studies and Sectoral Impacts

• E-commerce & Retail: Companies like Flipkart and Reliance Jio use AI for demand prediction, personalised shopping experience & last-mile logistics.
  • Yet, they retain human managers for language, diversity, and region-specific nuances.
• MSMEs: India’s MSMEs  the economic backbone can benefit from AI in inventory management, predictive maintenance & sales forecasting.
• Yet affordability and awareness remain roadblocks.
• Pharmaceuticals & Healthcare: During COVID-19, AI helped firms navigate supply chain disruptions & telemedicine operations.
• IT & Tech Services: Generative AI accelerates coding, boosting developer productivity by up to 66% (NNG study), allowing firms to shift focus to innovation.
• India’s rank in IMF’s AI Preparedness Index: India houses vibrant AI innovation clusters in Bengaluru, Hyderabad, and Pune, yet it ranks 72nd on the IMF’s AI Preparedness Index (score: 0.49). For comparison, the U.S. scores 0.77 and Singapore 0.80.

Challenges

• Job Displacement: Up to 800 million jobs globally could be affected by AI by 2030 (McKinsey).
  • Middle managers and low-skilled workers face the highest risk. Large sections are non-graduates or older workers with low digital skills.
• Skilling Deficit: While 94% of Indian firms plan to reskill employees (LinkedIn), execution is patchy. Government initiatives like Skill India need expansion and better alignment with AI-driven needs.
• Ethical & Data Risks: Bias in AI algorithms can lead to unfair outcomes in hiring, lending, or policing.
  • The Digital Personal Data Protection Act, 2023 is a start but lacks robust enforcement and awareness.
• Infrastructure Inequality: AI adoption is urban-centric; rural India remains under-equipped.
  • Low-cost AI solutions for SMEs are scarce, and public-private partnerships are still evolving.

Way Forward

• Skilling & Reskilling at Scale: Integrate AI modules in school and university curricula.
  • Expand Skill India Digital to cover AI, data analysis, and prompt engineering.
• Hybrid Organisational Models: Blend AI’s precision with human judgment — keep humans in the loop for ethics, creativity, and leadership.
  • Retain critical middle roles in culturally sensitive sectors (e.g., hospitality, education, public sector).
• Ethical AI Frameworks: Adopt global principles like OECD’s AI Guidelines on transparency, accountability, fairness.
  • Develop a national AI audit mechanism to ensure non-discriminatory outcomes.
• Build India-Centric AI Infrastructure: Incentivise low-cost AI tools through PLI-like schemes for AI hardware/software. Support Rural AI Labs under Digital India 2.0.

Govt. to Allow Private Operators in Nuclear Energy Sector

Syllabus: GS3/Energy

Context

• The government is likely to move two crucial amendments in the laws governing the country’s atomic energy sector in the upcoming monsoon session of Parliament.

Legal Reforms Underway

• Easing Nuclear Liability Law (Civil Liability for Nuclear Damage Act, 2010): Its objective is to limit the liability of equipment vendors in case of a nuclear accident. Key Proposed Changes:
  • Monetary Cap: Liability may be capped to the original contract value.
  • Time Limit: Introduce a statute of limitations for how long liability applies.
• Amendment to the Atomic Energy Act, 1962: Its objective is to allow private and foreign players to enter nuclear power generation.
  • Current Restriction: Only state-owned entities like NPCIL and NTPC Ltd can operate nuclear plants.
  • Proposed Change: Permit minority equity participation by foreign/private entities in upcoming projects.

Need for the Changes

• NPCIL: India’s nuclear sector is governed by the Atomic Energy Act, 1962, under which only government-owned entities such as NPCIL can generate and supply nuclear energy.
  • There has been no private sector involvement in India’s nuclear power sector so far.
• Foreign companies like GE-Hitachi, Westinghouse, and Framatome have avoided India due to open-ended liability concerns.
  • Amending this is crucial to attract foreign investment and technology.
• These moves aim to unlock the potential of the Indo-US Civil Nuclear Agreement, signed nearly two decades ago.
  • India intends to package these reforms as part of a wider trade and investment framework with the U.S., potentially leading to a trade pact.

Recent U.S. Regulatory Breakthrough

• Recently, the U.S. Department of Energy granted Holtec International a specific authorisation (SA IN2023-001) under 10CFR810.
• Implication: Holtec can now transfer unclassified SMR technology to Indian partners like Tata Consulting Engineers and L&T.
  • This clears the path for design and manufacturing of small modular reactors (SMRs) in India.
• Significance: Positions India to co-develop and manufacture nuclear components domestically.

India’s Need to Increase its Nuclear Capacity:

• Nuclear Capacity: India’s plans to increase its nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32 and eventually 100 GW by 2047. 
• Energy Demand Growth: India’s electricity demand is expected to increase 4-5 times by 2047, and nuclear power will help meet base-load demand alongside renewables.
• India’s Targets: To reduce the emission intensity of its GDP by 44% by 2030 from the 2005 level.
  • To achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
• Roadmap for 100 GW: A roadmap is being developed with stakeholders, and while challenges remain, achieving the 100 GW target is seen as both ambitious and achievable

Conclusion

• These developments reflect a historic shift in India’s nuclear policy. By addressing legal and regulatory obstacles, India is poised to:
  • Unlock foreign investment and advanced technology.
  • Expand its clean energy portfolio through nuclear power.
  • Reinforce strategic alignment with the U.S. under the civil nuclear framework.

70 Applications Received for Scheme to Produce Electronic Components

Syllabus: GS3/ Science and Technology

Context

• The Government of India has received 70 applications, 80% from small and medium enterprises (SMEs), for its Electronics Component Manufacturing Scheme.

Electronics Component Manufacturing Scheme

• It is a Rs.22,919 crore scheme, aims to develop a robust component ecosystem by;
  • Attracting large investments (global/domestic) in the electronics component manufacturing ecosystem, 
  • Increasing Domestic Value Addition (DVA) by developing capacity and capabilities, and 
  • Integrating Indian companies with Global Value Chains (GVCs).
• Salient Features of the Scheme:
  • The scheme provides differentiated incentives to Indian manufacturers tailored to overcome specific disabilities for various categories of components and sub-assemblies so that they can acquire technological capabilities and achieve economies of scale. 
  • The tenure of the scheme is six years with one year of gestation period.
  • Payout of a part of the incentive is linked with employment targets achievement.

Component Classification under the Scheme

• Category A: Display modules, camera module sub-assemblies.
• Category B: Bare components like non-surface mount devices, multi-layered PCBs, lithium-ion cells, IT hardware products.
• Category C: Flexible PCBs, SMD passive components.
• Category D: Capital goods and components used in manufacturing of A, B, and C.

Progress in India’s electronics sector

• The domestic production of electronic goods has increased from Rs.1.90 lakh crore in FY 2014-15 to Rs.9.52 lakh crore in FY 2023-24 at a CAGR of more than 17%. 
• The exports of electronic goods have also increased from Rs.0.38 lakh crore in FY 2014-15 to Rs.2.41 lakh crore in FY 2023-24 at a CAGR of more than 20%.

Challenges in electronics sector 

• Market Competition: The global electronics market is dominated by countries like China, Taiwan, USA, South Korea, Vietnam and Malaysia. 
• Technical Skills: There is a lack of adequately trained technical personnel for advanced manufacturing processes.
• Capital Intensive industry: Electronic manufacturing is a complex and technology-intensive sector with huge capital investments, high risk, long gestation and payback periods, requiring significant and sustained investments.

Government initiatives

• Make in India, Digital India, and Startup India are promoting domestic manufacturing and technological innovation.
• Production Linked Incentive Scheme (PLI): The scheme aims to attract large investments in the mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.
• National Policy on Electronics 2019 (NPE 2019): It is a comprehensive framework to develop India as a global hub for electronics manufacturing.
• Modified Electronics Manufacturing Clusters (EMC 2.0) develops infrastructure with common amenities and industrial clusters for electronics production.

Way Ahead

• India has set a target to achieve 500 billion USD in electronics manufacturing in value terms by 2030.
• To enhance competitiveness, India needs to localize high-tech components, strengthen design capabilities through R&D investments, and forge strategic partnerships with global technology leaders.

Fatigue of Li Metal Anode in Solid-State Batteries

Syllabus: GS3/Science and Technology

Context

• A recent study identifies mechanical fatigue of the lithium metal anode, rather than current density alone, as the key cause behind dendrite-induced short circuits and failure of Solid-State Batteries (SSBs).

What are Solid-State Batteries (SSBs)?

• (SSB) is an advanced type of battery that uses a solid electrolyte instead of the liquid or gel-like electrolyte found in conventional lithium-ion batteries.
• Working Mechanism:
  • Charging Phase: Lithium ions move from the cathode to the anode through the solid electrolyte, storing energy.
  • Discharging Phase: Lithium ions travel back from the anode to the cathode, generating an electric current that powers devices or vehicles.

Difference between Conventional Li-ion Batteries and SSBs

Challenges in Solid-State Batteries (SSBs)

• Lithium Dendrite Formation: Dendrites are hair-like metallic lithium structures that grow on the anode during repeated charge cycles.
• These structures form when lithium ions (Li⁺) unevenly deposit during charging. These dendrites can:
  • Pierce the solid electrolyte,
  • Reach the cathode, and
  • Cause a short circuit, rendering the battery unsafe and unusable.
• Even at low current densities, dendrites can form due to cyclic mechanical fatigue of the lithium metal anode.
• The Coffin-Manson law of material fatigue, a well-known principle in materials science, was found applicable to lithium metal degradation.

Applications of Solid-State Batteries

• Electric Vehicles (EVs): Toyota and BMW are developing SSB-powered EVs with extended range and rapid charging. 
• Consumer Electronics: Companies like Apple and Samsung are investing in SSBs for safer and longer-lasting smartphones and laptops.
• Grid Storage: Tesla and other energy giants are investigating SSBs for renewable energy storage solutions.