UPSC DAILY CURRENT AFFAIRS (28TH DECEMBER, 2024)

Lighthouse Tourism in India

Syllabus :GS 3/Economy  

In News

India has 204 lighthouses, many of which are being reimagined as tourist destinations.

Lighthouse Tourism

• Lighthouse tourism involves transforming lighthouses and their surrounding areas into vibrant tourist attractions.
•  These structures, often located in scenic coastal or island settings, offer visitors a unique combination of natural beauty, maritime history, and recreational opportunities.

The Potential of Lighthouse Tourism in India

• Strategic Locations: Many lighthouses are situated in breathtaking locations along India’s coastline or remote islands, offering panoramic sea views.
• Cultural Importance: Some lighthouses date back centuries and are near UNESCO World Heritage Sites like Mahabalipuram in Tamil Nadu or other prominent cultural landmarks.
• Adventure and Leisure: These sites can host activities such as trekking, boating, and water sports, appealing to adventure seekers.
• Economic Impact: Developing lighthouse tourism can generate hospitality, transportation, and handicraft employment while boosting local economies.

Steps Taken By The Indian Government To Boost Lighthouse Tourism

• The Central Government is actively promoting lighthouse tourism as a part of its broader Maritime India Vision (MIV) 2030 and Amrit Kaal vision 2047 to enhance India’s cultural heritage and maritime legacy.
• Indian Lighthouse Festival Series:  The 1st Indian Lighthouse Festival, “Bharatiya Prakash Stambh Utsav”, was inaugurated in September, 2023 by the Union Minister of Ports, Shipping & Waterways in Goa.
  • It has been held annually since then, serving as a key platform to celebrate and promote lighthouse tourism.
• Sagarmala Programme: The government’s commitment to lighthouse tourism is also evident from its efforts under the Sagarmala Programme and its focus on fostering partnerships with private stakeholders.
  • It exemplifies integrated development, blending infrastructure growth, sustainability, and community welfare to drive India’s maritime and economic progress.

Recent Developments:

• In February 2024, PM Modi dedicated 75 lighthouses with tourist facilities across 10 states and UTs.
• ₹60 crore invested in the development of these sites, which now include museums, amphitheaters, parks, etc.
• Over 16 lakh visitors in 2023-24, up by 400% from 2014, with 10 lakh visitors already in 2024-25.

Forward-looking strategies:

• Sustainable Development: Emphasis on eco-friendly practices to protect fragile coastal ecosystems while promoting responsible tourism.
• Integration with Coastal Circuits: Lighthouses are incorporated into broader coastal tourism itineraries to enhance their appeal.
• Awareness Campaigns: Digital initiatives are being launched to showcase lighthouse destinations to domestic and international audiences.
• Skill Development: Training programs are being introduced to equip local communities with skills required for employment in hospitality and tourism-related sectors.

Conclusion:

• Lighthouse tourism blends heritage conservation with modern tourism, offering a unique visitor experience while contributing to local economies and community empowerment.
• Continued efforts under the Sagarmala Programme and with private stakeholder participation will further strengthen lighthouse tourism as a cornerstone of India’s tourism industry.

India’s Deep Ocean Exploration Mission in 2026

Syllabus: GS3/ Science and Technology

Context

• The Government of India is preparing to send a human into the deep sea as part of its ambitious ‘Deep Sea Mission,’ aligned with the country’s first human space mission scheduled for early 2026.

Deep Ocean Mission (DOM)

• DOM is implemented by the Ministry Of Earth Sciences (MoES) and was approved in 2021 at a cost of nearly Rs 4,077 crore over a five-year period in a phased manner. 
• The mission has six pillars:
  • Development of technologies for deep-sea mining and a manned submersible to carry three people to a depth of 6,000 meters in the ocean;
  • Development of ocean climate change advisory services, involving an array of ocean observations and models to understand and provide future climate projections;
  • Technological innovations for the exploration and conservation of deep-sea biodiversity;
  • Deep-ocean survey and exploration aimed at identifying potential sites of multi-metal hydrothermal sulphides mineralisation along the Indian Ocean mid-oceanic ridges;
  • Harnessing energy and freshwater from the ocean; and
  • Establishing an advanced Marine Station for Ocean Biology, as a hub for nurturing talent and driving new opportunities in ocean biology and blue biotechnology.

Objectives 

Developments Linked to it 

• Samudrayaan Mission : As a part of DOM, India’s flagship deep ocean mission, ‘Samudrayaan’, was initiated in 2021 by the Ministry of Earth Sciences.
  • The crewed expedition reaching a depth of 6,000 m to the ocean bed in the central Indian Ocean will be accomplished by Matsya6000, a deep-ocean submersible.

Significance

• The ‘New India 2030’ document outlines the blue economy as the sixth core objective for India’s growth. The years 2021-2030 have been designated by the United Nations as the ‘Decade of Ocean Science’.
• DOM is one of nine missions under the Prime Minister’s Science, Technology, and Innovation Advisory Council (PMSTIAC). 
• The mission is significant for the sustainable extraction of valuable resources, including polymetallic nodules and polymetallic sulphides. 

Challenges

• High pressure in the deep oceans: Operating under such high-pressure conditions requires the use of meticulously designed equipment crafted from durable metals or materials.
• Landing on the ocean bed also presents challenges due to its incredibly soft and muddy surface.
• A large amount of power and energy is required to extract minerals to the surface.
• Poor Visibility poses a significant hurdle as natural light can penetrate only a few tens of meters beneath the surface, 

Concluding remarks

• The Deep Sea Mission holds immense potential to drive India’s economic growth. 
• As the 6th country to undertake such an initiative, India’s first manned submersible, Matsya 6000, will explore the mysteries of the deep sea.
  • By joining the ranks of countries already investing in deep-sea exploration, India is positioning itself as a global leader in ocean science and sustainable resource management. 

Household Consumption Expenditure Survey (HCES) 2023-24

Syllabus: GS3/Indian Economy

Context

• The Ministry of Statistics and Programme Implementation (MoSPI) decided to conduct two consecutive surveys on household consumption expenditure during 2022-23 and 2023-24.

About

• The National Sample Survey Office (NSSO) under Ministry of Statistics and Programme Implementation has been conducting household surveys on consumption/consumer expenditure at regular intervals as part of its rounds, normally of one-year duration.
• Since 1972, NSSO has been conducting the Consumer Expenditure Survey.
• It  is designed to collect information on consumption of goods and services by the households. 
• The survey aims at generating estimates of household Monthly Per Capita Consumption Expenditure (MPCE) and its distribution separately for the rural and urban sectors of the country. 

Methodology Used

• In the present survey, three 3 questionnaires were used, covering:

• Food items;
• Consumables and services items, and;
• Durable goods used.
• The survey had a separate provision for collection of information on the quantity of consumption of the number of items received and consumed by the households free of cost through various social welfare programmes.

Changes in the Methodology

• The number of items covered has increased from 347 to 405 items.
• There have been changes in the questionnaire of the survey.
  • Instead of a single questionnaire as used in earlier surveys, HCES 2022-23 introduced four separate questionnaires for food, consumables and services items, and durable goods.
  • Thus, there have been multiple visits for data collection instead of the usual practice of a single visit in the earlier surveys.

Major Highlights for 2023-24

• Average MPCE: The average Indian’s monthly spending increased 9.2% to ₹4,122 in rural areas and 8.3% to ₹6,996 in urban regions.

• Trends in Rural Spending: Non-food accounted for 53% of the spending.
  • Clothing, bedding and footwear had the largest share.
• Trends in Urban Spending: Non-food items accounted for 60% of the spending, led by miscellaneous goods and entertainment, clothing and footwear, and education.
  • Food categories like beverages and processed food, vegetables, and dairy products accounted for 31.5% of the urban spending growth.

• Rural Urban Gap: It has declined to 71% in 2022-23 from 84% in 2011-12.
  • It further came down to 70% in 2023-24.
  • Rural households now spend 69.7% of what urban households spend.
  • The rural-urban difference in the average MPCE among the states is the highest in Meghalaya (104%) followed by Jharkhand (83%) and Chhattisgarh (80%).
• Major Increase in MPCE: It has been the maximum for the bottom 5 to 10 % of India’s population, for both rural and urban areas.
• Consumption Inequality: It has declined from the level of 2022-23 in both rural and urban areas.
• Gini Coefficient: It has declined from 0.266 to 0.237 in rural areas and 0.314 to 0.284 in urban regions.
  • A lower coefficient indicates reduced inequality.
• Regional Consumption Patterns: Western and northern states had higher per capita consumption compared to eastern and central states.
  • States like Maharashtra, Punjab, Tamil Nadu, and Kerala had higher-than-average spending, while states like West Bengal, Bihar, Uttar Pradesh, and Odisha had lower-than-average consumption.
• Among states, Sikkim reported the highest MPCE, with Rs 9,377 in rural areas and Rs 13,927 in urban areas, while Chhattisgarh recorded the lowest.

Future Outlook 

• The findings of the HCES 2023-24 highlight the ongoing economic recovery and the narrowing gap between rural and urban consumption.
• Consumption inequality, both in rural and urban areas, has declined from the level of 2022-23.
• The difference between Rural and Urban MPCE has narrowed substantially over the years, implying the success of government policies in improving Rural incomes.
• Policymakers can use this data to design targeted interventions to further reduce inequality and support sustainable economic growth.

Strengthening Fisheries Sector of India

Syllabus: GS3/Economy

Context

• India has witnessed an 83% increase in the national fish production since 2013-14, which stands at a record 175 lakh tons in 2022-23.

Fisheries Sector of India

• India is the second-largest fish and aquaculture producer globally.
• 75% of the production is from inland fisheries. 
• Andhra Pradesh is the largest fish producer in the country followed by West Bengal and Gujarat.
• Strengthening last-mile fisheries and aquaculture extension services is of paramount importance.
  • Such extension should provide request-based services to fishers/fish farmers on the life cycle of improved species cultured, water quality, disease, and available rearing technologies.

Challenges of the Fisheries Sector in India

• Overfishing: Overexploitation of fish stocks due to excessive fishing is a significant challenge. 
• Illegal, Unreported, and Unregulated (IUU) Fishing: IUU fishing undermines efforts to manage and conserve fish stocks.
  • It includes activities such as fishing without proper authorization, disregarding catch limits, and using banned fishing gear. 
• Poor Fisheries Management: Limited enforcement of regulations, lack of comprehensive data on fish stocks, and inadequate monitoring and control measures exacerbate the problem of overfishing and IUU fishing.
• Lack of Infrastructure and Technology: Inadequate infrastructure and outdated fishing technology hinder the efficiency and productivity of the fisheries sector. 
• Pollution and Habitat Destruction: Pollution from industrial activities, coastal development, and agricultural runoff poses a threat to marine and freshwater habitats. 
• Climate Change: Climate change is altering oceanic and freshwater environments, affecting fish distribution, migration patterns, and reproductive cycles. 
• Socio-economic Issues: Poverty, lack of alternative livelihood options, and unequal distribution of resources contribute to the vulnerability of fishing communities. 

Government Initiatives for the Growth of the Sector

• National Fisheries Development Board (NFDB): Established in 2006, NFDB serves as the apex body for the planning and promotion of fisheries development in India. 
• Blue Revolution: Launched in 2015, the Blue Revolution aims to promote sustainable development and management of the fisheries sector. 
• Sagarmala Programme: The Sagarmala Programme, launched in 2015, aims to promote port-led development and unlock the potential of India’s maritime sector.
  • It includes initiatives to develop fishing harbors, cold chain infrastructure, and fish processing facilities to support the growth of the fisheries sector.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY): Launched in 2020, this scheme aims to increase fish production, boost aquaculture, and improve infrastructure.
• In order to address the infrastructure requirement for fisheries sector, the union Government during 2018-19 created the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) with a total funds size of Rs 7522.48 crore.
  • In the earlier phase of implementation of FIDF during the period from 2018-19 to 2022-23, a total 121 fisheries infrastructure projects have been approved for creation of various fisheries infrastructures. 
• National Fisheries Policy: The Government of India formulated the National Fisheries Policy in 2020 to provide a comprehensive framework for the sustainable development of the fisheries sector.
  • The policy focuses on promoting responsible fisheries management, conserving aquatic biodiversity, enhancing fish production, and improving the socio-economic status of fishers and fish farmers.
• Fish Farmers Development Agencies (FFDAs): The Government has established FFDAs at the district level to provide technical guidance, training, and extension services to fish farmers.
  • These agencies play a crucial role in disseminating knowledge about modern aquaculture practices, facilitating access to credit and inputs, and promoting entrepreneurship in the fisheries sector.
• Coastal Aquaculture Authority (CAA): The CAA regulates and promotes coastal aquaculture activities to ensure sustainable development and environmental conservation.
  • It formulates guidelines for shrimp farming, regulates the use of coastal land for aquaculture purposes, and monitors compliance with environmental norms to prevent adverse impacts on coastal ecosystems.

Way Ahead

• The fisheries sector in India holds significant potential for growth and development, given the country’s extensive coastline, numerous rivers, and inland water bodies.
• Measures that can further help the sector:
  • Strengthening monitoring and enforcement mechanisms to combat illegal, unreported, and unregulated (IUU) fishing activities.
  • Providing financial support and incentives for adopting sustainable practices and modern technologies in fisheries.
  • Ensuring the protection and restoration of aquatic habitats such as mangroves, coral reefs, and wetlands.
  • Strengthening supply chain infrastructure and establishing better market linkages to ensure fair prices for fishers and access to domestic and international markets.

Health: Breakthroughs of hope and promise in 2025

Syllabus: GS2/ Health

Context

• As we approach 2025, groundbreaking advancements across multiple healthcare specialisations in 2024 are offering transformative possibilities and renewed hope.

Breakthroughs in Weight-Loss Treatments

• Glucagon-like peptide-1 (GLP-1) receptor agonists have emerged as highly effective solutions for managing obesity, diabetes, and related health conditions. 
• Notable drugs such as Zepbound, Ozempic and Wegovy, have demonstrated remarkable efficacy in promoting weight loss and improving metabolic health.

Cancer: Innovations in Immunotherapy 

• CAR-T Cell Therapy: Advances in immunotherapy are redefining cancer treatment by leveraging the body’s immune system to target cancer cells.
  • India’s launch of NexCAR19, its first homegrown CAR-T therapy, represents a major breakthrough.
• Personalized Cancer Vaccines: In the UK, the Cancer Vaccine Launch Pad (CVLP) is exploring mRNA-based vaccines tailored to individual patients. 
• HPV Vaccination Campaign in India: India’s upcoming nationwide rollout of human papillomavirus (HPV) vaccination in 2025 marks a critical step in cancer prevention. 

Alzheimer’s Disease

• Alzheimer’s disease, a progressive brain disorder that leads to memory loss and cognitive decline, affects millions globally, with around 5.3 million cases in India. 
• Leqembi (lecanemab) and Kisunla (donanemab-azbt) have been developed to clear amyloid beta plaques, believed to contribute to cognitive decline.

Gene Editing

• Gene editing has the potential to revolutionize the treatment of genetic diseases.
• In 2023, the FDA approved Casgevy and Lyfgenia, cell-based therapies for sickle cell disease (SCD) in patients aged 12 and older, offering a potential cure. 
• In 2024, Verve Therapeutics introduced VERVE-101 and VERVE-102, experimental therapies aimed at lowering cholesterol by targeting the PCSK9 gene in the liver.
• These treatments offer hope for patients with heterozygous familial hypercholesterolemia (HeFH) and atherosclerotic cardiovascular disease (ASCVD) by permanently deactivating the PCSK9 gene.

Concluding remarks

• For India, the road to 2025 and beyond will require not only the adoption of these new treatments but also a concerted effort to ensure that they reach those who need them the most. 
• This includes strengthening healthcare infrastructure, expanding health insurance coverage, and investing in research to make these treatments accessible to a broader population.

FACTS IN NEWS

Baltic Sea

Syllabus: GS1/ Geography

Context

• NATO to enhance military presence in Baltic Sea after undersea power and internet cables cut.

About the Baltic Sea

• It is the youngest sea on Earth, formed 10,000-15,000 years ago as glaciers retreated at the end of the last Ice Age.
• It is located in Northern Europe, enclosed by Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Poland, Russia, and Sweden.
• It is one of the largest bodies of brackish water on the planet (Earth), connected to St. Petersburg by the Gulf of Finland.

PM CARES Fund

Syllabus: GS2/Governance

Context

• The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) received Rs 912 crore in contributions during the financial year 2022-23.

About

• The PM CARES Fund was registered as a Public Charitable Trust under the Registration Act, 1908 in 2020.
• It was established in the wake of the Covid-19 pandemic.
• Objective: Dealing with any kind of emergency or distress situation, like posed by the COVID-19 pandemic, and to provide relief to the affected.
• Governance: The Prime Minister is the ex-officio chairman of the PM CARES Fund, while the Defence Minister, Home Minister and Finance Minister are ex-officio trustees of the Fund.
  • It is not a part of the government budget, and its workings are separate from the government’s direct financial control.
• Tax Benefits: Donations to PM CARES Fund would qualify for 80G benefits for 100% exemption under the Income Tax Act, 1961.
  • Donations will also qualify to be counted as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.

Siang Upper Multipurpose Project (SUMP)

Syllabus: GS3/Infrastructure

Context

• Arunachal Pradesh Chief Minister has claimed that misinformation is being spread to mislead locals about the proposed Siang Upper Multipurpose Project (SUMP). 

About

• Location: The project is located in the Upper Siang district of Arunachal Pradesh, which is in the northeastern part of India. 
• Siang River: It is a major tributary of the Brahmaputra River.
  • It originates near Mount Kailash in Tibet, where it is known as the Yarlung Tsangpo. 
  • It traverses over 1,000 km eastward before entering Arunachal Pradesh as the Siang. 
  • Further downstream, in Assam, it joins tributaries like the Dibang and Lohit to become the Brahmaputra.
• Capacityof SUMP: Exceeding 10,000 MW.
• Multipurpose Nature: As a multipurpose project, the SUMP aims to serve more than just power generation:
  • Flood Control: The dam and reservoir would help in regulating the flow of the river, mitigating the risk of flooding downstream, particularly in Assam.
  • Irrigation: The project could provide water for irrigation, improving agricultural productivity in the region.
  • Water Supply: The water storage could be used for domestic and industrial purposes.
• Environmental and Social Concerns:
  • Displacement of Local Communities: The construction of dams and reservoirs result in the displacement of people who live along the river.
  • Ecological Impact: Alterations to the river ecosystem affect biodiversity, fisheries, and downstream water availability.
  • Seismic Risks: The region is earthquake-prone, raising concerns about the safety of large dams in such an area.

New method for detecting H. pylori

Syllabus :GS 3/Science and Tech 

In News

Researchers have developed a cost-effective point-of-care diagnostic service, FELUDA, for detecting H. pylori and its antibiotic resistance mutations in rural areas of India with limited access to diagnostic labs.

 H. pylori

• H. pylori is a gram-negative, microaerophilic bacterium that infects humans, typically residing in the stomach.
• It causes inflammation and ulceration of the stomach lining, leading to gastrointestinal issues.
  • It is the leading cause of chronic gastritis, peptic ulcers, gastric lymphoma, and gastric cancer
• Transmission occurs through fecal-oral, gastric-oral, oral-oral, or sexual routes, with lower socioeconomic status being a significant risk factor for higher infection prevalence.
• Global Impact of H. pylori: H. pylori infects over 43% of the global population and causes gastrointestinal disorders like peptic ulcers, gastritis, dyspepsia, and even gastric cancer.
  • Resistance to clarithromycin, caused by mutations in the 23S ribosomal RNA gene, is a growing public health threat, complicating treatment.
• Need for Novel Diagnostic Tools: To address this, there is a need for cost-effective, rapid diagnostic tools to detect H. pylori and its antibiotic resistance, particularly in underserved regions.
• CRISPR-Based Diagnostics: CRISPR technologies offer high accuracy in detecting specific mutations by designing guide RNAs for precise DNA recognition.
  • Researchers previously explored CRISPR-Cas9 methods but faced limitations due to the need for specific PAM sequences.
• Developments : Study explored en31-FnCas9, an engineered protein from Francisella novicida, which overcomes the PAM sequence limitation and successfully detects H. pylori mutations related to clarithromycin resistance.
  • The study  demonstrated the effectiveness of en31-FnCas9 in detecting H. pylori and its resistance mutations in gastric biopsy samples. 
  • It was combined with a lateral flow-based test strip (FELUDA) for rapid, visual results, making it ideal for remote clinical settings.

Smart Cities Mission (SCM)

Syllabus: GS2-Welfare Schemes

Context

• A study by the Indian Institute of Management, Bangalore, reveals that the introduction of smart classrooms under the Smart Cities Mission has led to a 22% increase in overall enrolment in 19 cities from 2015-16 to 2023-24.

About the Smart Cities Mission (SCM)

• It is a Centrally Sponsored Scheme launched in 2015.
• It covers 100 cities and is being implemented by the Ministry of Urban Development (MoUD) and all state and union territory (UT) governments.
• Originally slated for completion by 2019-20, the SCM has been extended to 31 March 2025, with 91% of projects completed as of November 2024.
•  The six fundamental principles on which the concept of Smart Cities is based are:

• Objective & Significance:
  • To promote cities that provide core infrastructure and give a decent quality of life to their citizens, a clean and sustainable environment and application of ‘Smart’ Solutions.
  • Make Cities liveable, inclusive, sustainable (Area-based development).
  • Create employment opportunities.

Panama Canal 

Syllabus :GS 1/Places 

In News

Donald Trump threatened to reimpose U.S. control over the canal, citing high fees and concerns over Chinese influence in nearby ports.

• Panamanian President Jose Raul Mulino rejected Trump’s threat, reaffirming that the canal is under Panama’s full control.

About Panama Canal 

• The Panama Canal is an 82-km (51-mile) artificial waterway connecting the Pacific and Atlantic Oceans, saving ships thousands of miles and weeks of travel.
• Construction History: Spanish colonizers studied the canal in the 1530s, and after a failed French attempt, the U.S. took over in 1903, after supporting Panama’s independence.
  • The U.S. paid Panama $10 million and an annual annuity for the canal’s construction and administration, which led to the canal’s opening in 1914.
• Importance: It shortens travel time for ships, such as the journey from Los Angeles to New York, by about 8,000 miles (22 days) compared to the southern route around South America.
• U.S. Control and Handovers: Tensions grew over U.S. control, especially after the 1956 Suez Crisis.
  • In 1977, the Carter-Torrijos Treaty granted Panama full control of the canal by 1999.
• Recent Developments: Climate change and droughts have lowered water levels, limiting transits in the canal.

813th Urs of Khwaja Moinuddin Chishti

Syllabus: GS1/ History and Culture

Context

• The 813th Urs of Sufi saint Khwaja Moinuddin Chishti begins with a flag ceremony at Durgah Khwaja Saheb, Ajmer.

Khwaja Moinuddin Chishti

• Early Life: Moinuddin was a revered Sufi saint, born in 1141 CE in Persia (modern-day Iran) and believed to be a descendant of Muhammad.
• Spiritual Training: Khwaja Moinuddin received formal education in Bukhara and Samarkand, centers of Islamic learning.
  • After encountering the mystic Ibrahim Qandozi, he set out on a spiritual journey.
  • He was later initiated into the Chishti Sufi order by Khwaja Usman Harooni near Herat.
• In 1192  CE, Moinuddin arrived in Ajmer, during the decline of the Chauhan dynasty following its defeat by Muhammad of Ghor.
• Disciples: Khwaja Moinuddin’s teachings were carried forward by prominent disciples like Qutbuddin Bakhtiyar Kaki, Baba Fariduddin, Nizamuddin Auliya, and Chirag Dehalvi.

Contributions and Teachings 

• Promotion of Sufi Values: Khwaja Moinuddin propagated Sufism as a devotional and ascetic path within Islam.
  • He emphasized divine love, service to humanity, and equality, transcending religious boundaries.
• Interfaith Harmony: By engaging with Hindu mystics and sages, he fostered a spirit of mutual respect and understanding, rejecting religious orthodoxy.
• He earned the title “Garib Nawaz” (friend of the poor) for his selfless service.
• Legacy: Mughal Emperor Akbar revered Moinuddin and made pilgrimages to his shrine.

Current Account Deficit

Syllabus: GS3/ Economy

Context

• India’s current account deficit (CAD) marginally moderated to $11.2 billion, equivalent to 1.2% of gross domestic product (GDP), during the July-September 2024 quarter. 

Current Account Deficit (CAD)

• The current account deficit occurs when a country’s imports of goods and services exceed its exports. 
• It is a crucial indicator of a nation’s economic health and reflects the balance of trade, net income from abroad, and net current transfers.

Components of CAD

• Trade Balance: The difference between the value of exports and imports of goods.
• Services: Includes software exports, travel, and other service receipts.
• Net Income: Comprises interest, dividends, and remittances.
• Net Transfers: Includes private remittances from expatriates.

Significance of lower CAD

• Economic Stability: It reduces vulnerabilities to global economic shocks, such as changes in commodity prices or interest rates in advanced economies.
• Reduced External Debt: With a lower CAD, India borrows less from foreign sources to bridge its deficit, keeping the external debt-to-GDP ratio manageable.
• Global Confidence: A low CAD boosts India’s credibility in global financial markets, enhancing its credit rating.