9 PM UPSC Current Affairs Articles 3rd January, 2025

Mains Oriented Articles

GS PAPER - 2

Impact of Donald Trump’s economic policies on U.S. growth and inflation

Source: The post impact of Donald Trump’s economic policies on U.S. growth and inflation has been created, based on the article “The good, the bad and the uncertainty of the year ahead” published in “Live mint” on 3rd January 2025

UPSC Syllabus Topic: GS Paper2- International Relations-Effect of policies and politics of developed and developing countries on India’s interests

Context: The article discusses the potential impact of President-elect Donald Trump’s economic policies on U.S. growth and inflation. It highlights both positive and negative effects of his proposals, such as tax cuts, deregulation, and trade policies, and considers the balancing role of market and regulatory factors. Impact of Donald Trump’s economic policies on U.S. growth and inflation

For detailed information on Donald Trump’s return as U.S. President and its impact read Article1 and Article 2

What Are the Positive Effects of Trump’s Policies?

1. Pro-Business Environment: Trump’s administration aims to create a pro-business environment, potentially unleashing “animal spirits” that drive investment, innovation, and growth.
2. Tax Policy: Extension of corporate and personal income tax cuts, set to expire in 2025, could further stimulate economic activity.
3. Deregulation: Reducing bureaucratic red tape may promote competition and lower prices over the long term.
4. Energy Production: Plans to increase oil and gas production by 3 million barrels per day could reduce energy costs, making domestic sectors more competitive.
5. Tech Industry Support: Growing backing from tech leaders could turbocharge industries like AI and robotics.

What Are the Negative Effects of Trump’s Policies?

1. Trade Policies: Trump’s high tariffs and potential trade wars, particularly with China, could lead to higher inflation by disrupting supply chains and increasing production costs.
2. Immigration Restrictions: Strict limits on immigration and mass deportations could drive labor costs up, leading to inflation and potential shortages in key sectors.
3. Public Debt: Permanent tax cuts without financial offsets might increase the U.S. public debt by nearly $8 trillion over the next decade, stoking inflation and raising long-term interest rates, which would crowd out future investment.

How Could Market Forces and Regulation Mitigate Risks?

1. Market discipline, such as bond market reactions, could temper inflationary policies by raising interest rates.
2. The independence of the Federal Reserve might also help manage inflation risks by adjusting interest rates.
3. Trump’s limited support in the House could restrict his ability to implement more radical policies.

What Is the Overall Impact Expected in 2025?

1. In 2025, Trump’s economic agenda might have a neutral overall impact on growth, with economic expansion possibly slowing compared to 2024.
2. Despite potential policy-driven headwinds, strong market and regulatory mechanisms are expected to moderate any severe economic fluctuations.

Question for practice:

Examine the potential effects of Trump’s economic policies on U.S. growth and inflation

Global Conflicts Challenge UN and India’s Role

Source: The post Global Conflicts Challenge UN and India’s Role has been created, based on the article “In 2025, India must play the role of peacemaker” published in “Live mint” on 3rd January 2025

UPSC Syllabus Topic: GS Paper2- International Relations-Important International institutions, agencies and fora – their structure, mandate.

Context: The article discusses global conflicts and violence, mentioning events in New Orleans, Gaza, Russia, Ukraine, Sudan, Myanmar, and Syria. It highlights the failure of international efforts at peace, criticizing the United Nations and stressing the need for India to play a stronger role in global diplomacy. It also refers to upcoming challenges, like a possible US-China trade war and issues over Taiwan. Global Conflicts Challenge UN and India’s Role

For detailed information on Role of the UN in maintaining peace read this article here

What Recent Conflicts Have Occurred?

Recent global conflicts include:

1. A terror attack in New Orleans, USA, killing at least 15 civilians.
2. Continuous Israeli bombings in Gaza, affecting children and babies.
3. Ongoing war between Russia and Ukraine, with threats of nuclear strikes.
4. Conflicts in Sudan and Myanmar escalating.
5. The conflict in Syria possibly ending.

What Was the Impact of These Conflicts?

These conflicts:

1. Threatened to expand into wider regional wars.
2. Involved major powers like the US and Russia using heavy weaponry.
3. Saw involvement from groups like Hamas, IS-Khorasan, and North Korean troops.
4. Resulted in massive casualties, like the attack in Crocus City, Russia, where 145 were killed.

How Have International Efforts at Peace Been?

1. The United Nations has been ineffective in preventing or resolving these conflicts. For example, ongoing wars in places like Gaza and Ukraine continue despite UN involvement.
2. Upcoming US leadership under Donald Trump might weaken UN efforts further, as he is known for his skepticism towards the UN.
3. There is need to restructure the UN, with India playing a significant role due to its neutrality and historical involvement in peacekeeping.

What Are the Future Concerns?

1. A possible trade war between the US and China could heighten global tensions.
2. Taiwan’s situation is precarious, potentially triggering another area of conflict.
3. There is a call for a stronger, restructured United Nations to effectively manage these emerging challenges, emphasizing the need for robust diplomacy to sustain global peace.

Question for practice:

Evaluate the effectiveness of the United Nations in resolving recent global conflicts.

Linking of Aadhaar with Voter IDs

Source: This post on Linking of Aadhaar with Voter IDs has been created based on  Should voter ID be linked with Aadhaar to combat voter fraud? published in The Hindu on 3rd January 2025.  

UPSC Syllabus topic: GS -2- Polity 

Context: The article discusses the debate surrounding the linkage of Aadhaar with voter ID cards in India, particularly in the context of combating voter fraud and ensuring electoral transparency.

Can linking Aadhaar with Voter IDs eliminate duplicate voter registrations?

1. UIDAI was created to assign unique IDs, which could be merged with voter data to identify duplicates caused by factors like migration or address changes.
2. Aadhaar assigns a unique identity number and enables real-time authentication, preventing individuals from having multiple voter IDs.

Does Aadhaar’s lack of citizenship proof hinder its role in elections?

1. Aadhaar is not a proof of citizenship. The Election Commission of India (ECI) must confirm citizenship. However, linking Aadhaar can still help identify duplicate registrations.
2. The ECI must ensure that voters meet the eligibility criteria. Aadhaar helps authenticate individuals but does not validate citizenship.

Are there privacy or security risks in linking Aadhaar with Voter IDs?

1. Voter ID data includes public information, so privacy concerns are minimal. However, linking Aadhaar might inadvertently expose phone numbers if they are shared voluntarily.
2. Aadhaar data, including biometrics, is secure and offline. Sharing a phone number is optional and used only for convenience, not embedded in the voter database.

How does linking Aadhaar with Voter IDs address issues like missing voters?

1. Missing voters remain a challenge due to errors or deliberate actions by officials.
2. Linking Aadhaar can reduce duplication but not entirely prevent missing names caused by human errors or malpractices.

Does Aadhaar ensure transparency in electoral rolls amidst political tensions?

1. Linking Aadhaar can address duplication but cannot resolve all issues. Voter roll manipulation, including fraudulent deletions and booth capturing, still requires stricter ECI oversight.
2. Aadhaar resolves duplication but cannot address problems rooted in human dishonesty or system flaws. Transparency also depends on the integrity and impartiality of officials.

What about concerns raised by activists over the right to privacy?

1. Linking Aadhaar with voter IDs does not violate privacy. The Aadhaar system is designed to maintain data security and confidentiality.
2. While there are concerns about misuse of contact details, these are optional and not inherently linked to voter ID functionality.

What was the National Electoral Roll Purification and Authentication Programme (NERPAP)?

1. NERPAP, started in 2015, aimed to clean up electoral rolls using Aadhaar.
2. However, issues like missing voters persisted in 2018, highlighting challenges in maintaining accurate and complete voter rolls.

Can Aadhaar-linked voter IDs eliminate all electoral fraud?

1. While Aadhaar can prevent duplication, other forms of electoral fraud require systemic improvements and accountability from current ECI officials.
2. Aadhaar is a technological tool that solves specific issues like duplicate IDs but cannot address broader electoral challenges tied to human conduct.

GS PAPER - 3

Boosting India’s Economy through Innovation and Reform

Source: The post Boosting India’s Economy through Innovation and Reform has been created, based on the article “Three wishes for 2025” published in “Business Standard” on 3rd January 2025

UPSC Syllabus Topic: GS Paper3- Growth and Development

Context: The article discusses the need for India to invest in innovation, scale up manufacturing, and focus on productivity through structural changes to achieve long-term economic growth. It also suggests reforming education, tourism, and improving political discourse to support these goals. Boosting India’s Economy through Innovation and Reform

For detailed information on Challenges and Opportunities in Indian Economy read this article here

What Is the Need for Indian Industry?

1. Investment in Innovation: Indian industry currently invests only 0.3% of GDP in R&D, significantly lower than the global average of 1.5%.
2. Comparison with Global Standards: Indian firms spend $7 billion annually on industrial R&D, compared to $625 billion in the US and $335 billion in China.
3. Profit Reinvestment: The top 10 successful Indian non-financial firms invest merely 2% of their profits in R&D, while firms in the US, China, Japan, and Germany reinvest between 29% and 55%.

How Can India Enhance Its Economic Policy?

1. To achieve a developed economy status by 2047, India needs to grow its GDP per capita from the current $2,700 to over $14,000. This requires an annual growth rate increase to 8.5%.
2. Key strategies include boosting female labor force participation and transitioning workers from agriculture to higher productivity sectors in industry and services.

What Changes Are Suggested for Structural and Political Reform?

1. Reduction of Government Control: Scrapping industrial licensing allows industries to invest without government restrictions. This change is modeled on the post-1991 economic reforms that led to significant growth.
2. Tariff Reduction: Lowering tariffs has historically forced Indian companies to compete with global firms, enhancing their competitiveness.
3. Independent Institutions: Allowing institutions to operate independently has improved regulatory frameworks, fostering a more robust business environment.
4. Tax Reforms: Reducing corporate and personal taxes since 1991 has enabled entrepreneurs to legally accumulate and reinvest wealth, contributing to economic growth.

What Reforms Are Needed in Education and Tourism?

1. Education:

• Increase funding to improve school quality.
• Allow more autonomy for higher education institutions in selecting their boards and faculty.

1. Tourism:

• Ease land use regulations to allow more hotels.
• Improve air connectivity to attract more tourists. Currently, Dubai attracts twice as many tourists as all of India.
• Simplify visa processes to enhance foreign tourist entries, following examples from countries like Thailand and Malaysia.

Question for practice:

Examine how the proposed structural and political reforms could enhance India’s global competitiveness in the industrial sector.

India Plans Tax Reforms to Reduce Debt

Source: The post India Plans Tax Reforms to Reduce Debt has been created, based on the article “Next steps in fiscal management” published in “Business Standard” on 3rd January 2025

UPSC Syllabus Topic: GS Paper3- Economy- mobilisation of resources

Context: The article discusses India’s government plans to manage its finances better by reducing the national debt and fiscal deficit. It mentions expected changes in tax policies and improvements in the goods and services tax system to support these goals. India Plans Tax Reforms to Reduce Debt

For detailed information on India’s debt burden- Explained Pointwise read this article here

What is the status of Fiscal Deficit in India?

1. The fiscal deficit target for India in 2025-26 is set at 4.4% of GDP, aligning with medium-term objectives post-pandemic.
2. This target is crucial as it aims to keep the central government debt on a downward trajectory relative to GDP.
3. Central government debt is projected to fall from 58.1% of GDP in 2023-24 to 56.8% in 2024-25.
4. Despite the reduction, the debt level remains about 17 percentage points higher than the Fiscal Responsibility and Budget Management (FRBM) Review Committee’s recommendation from 2017, indicating ongoing challenges in achieving optimal fiscal health.
5. State government debts also exceed recommendations, with total state debt at 28.5% of GDP in 2023-24, which is over 8 percentage points above the advised level by the FRBM Review Committee.

What Changes Are Expected?

1. The government is currently reviewing the Customs duty structure and the Income Tax Act, which might lead to policy changes soon.
2. The goods and services tax (GST) system might see changes aimed at simplifying it and adjusting rates to achieve a revenue-neutral level of 15-15.5%. The current average GST rate is 11.6%, which is below the optimal level, contributing to revenue shortfalls.
3. The government intends to revisit its disinvestment strategy to help manage fiscal pressures without cutting down on necessary capital expenditures. This could make the fiscal adjustment process smoother.
4. An expert group may be essential to devise a more effective strategy for further reducing the central government’s debt. Similarly, it is imperative for state governments to align with central practices and adopt similar frameworks to effectively manage and reduce their debt levels.

Question for practice:

Examine how the proposed changes in tax policies and improvements in the goods and services tax system are expected to support India’s goals of reducing the national debt and fiscal deficit.

Decline in Suicides Among CISF Personnel

Source: This post on Decline in Suicides Among CISF Personnel  has been created based on  ‘Suicides among CISF personnel dip 40% due to proactive measures’ published in The Hindu on 3rd January 2025.  

UPSC Syllabus topic: GS -3- Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context:  This article provides an in-depth overview of Air India’s introduction of in-flight Wi-Fi services, making it the first airline in India to offer Internet connectivity on domestic flights. The context is centered on the evolving trend of onboard connectivity in the aviation industry and its implications for passengers and airlines. Decline in Suicides Among CISF Personnel

What is the significance of the decline in suicide rates among CISF personnel?

1. The Central Industrial Security Force (CISF) recorded a 40% reduction in suicide rates among its personnel, bringing the rate down to 87 per lakh in 2024, compared to the national average of 12.4 per lakh in 2022.
2. This marks the first time in five years that the CISF rate has fallen below the national average.

Why is suicide among CISF personnel a critical issue?

Suicide remains a critical concern within Central Armed Police Forces (CAPFs), driven by factors such as:  Stress, Prolonged family separation, Work-related pressures and Personal issues.

What measures were implemented by the CISF to address this issue?

1. Personalised Engagement and Communication

• Commanding officers now conduct regular visits to duty posts.
• Daily “briefing–debriefing” sessions are held to identify and address signs of distress.

2. Grievance Redressal: An online grievance portal was launched for:
   • Timely monitoring and resolution of grievances.
   • Escalation to higher authorities (up to DG level) when required.

3. Mental Health Support

• 24×7 tele-counselling and personal counselling facilities were made available.
• Around 4,200 personnel benefited from these services till September 2024.

4. Research and Implementation

• A comprehensive mental health study was conducted in collaboration with AIIMS, New Delhi.
• Recommendations from the study are being implemented at the unit level.

What do the NCRB data reveal about national suicide trends?

1. National Suicide Rates (2017-2022):Increased from 9 per lakh in 2017 to 12.4 per lakh in 2022.
2. CISF’s decline contrasts with the rising national trend, showcasing the effectiveness of their proactive measures.

Air India’s Rollout of In-Flight Wi-Fi Connectivity

Source: This post on  Air India’s Rollout of In-Flight Wi-Fi Connectivity has been created based on  Explained: How in-flight Internet works published in The Hindu on 3rd January 2025.

UPSC Syllabus topic: GS -3- Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context:  This article provides an in-depth overview of Air India’s introduction of in-flight Wi-Fi services, making it the first airline in India to offer Internet connectivity on domestic flights. The context is centered on the evolving trend of onboard connectivity in the aviation industry and its implications for passengers and airlines. Air India’s Rollout of In-Flight Wi-Fi Connectivity.

What is Air India’s new Wi-Fi service?

1. Air India has introduced Wi-Fi Internet connectivity services on select domestic and international flights, becoming the first Indian airline to offer this service on domestic routes.
2. Initially, Wi-Fi will be free for a limited introductory period.

How can passengers access Wi-Fi on Air India flights?

1. Enable Wi-Fi on your device.
2. Select the ‘Air India Wi-Fi’ network.
3. Open the device’s default browser, which will redirect to the Air India portal.
4. Enter your PNR and last name.
5. Connect to the Wi-Fi network.

What technologies are used for in-flight Internet connectivity?

Two primary technologies are employed:

1. Air-to-Ground (ATG):
   • Aircraft receive signals from cellular towers on the ground via an antenna on the plane’s belly.
   • Effective over land but limited over large water bodies or sparsely populated areas.
2. Satellite-Based Connectivity:
   • Signals from ground stations are relayed to satellites and then to the aircraft via an antenna on top of the plane.
   • Offers wider coverage, ideal for flights over remote areas and oceans.

How does in-flight Wi-Fi work?

1. Devices in the cabin send signals to in-cabin Wi-Fi antennas.
2. Signals are routed to an onboard server.
3. For Satellite-Based Systems:Signals are transmitted to satellites, which relay them to ground stations and back to the aircraft.
4. For ATG Systems:Signals are sent directly to ground cellular towers and back to the aircraft.

What are the limitations of in-flight Wi-Fi?

1. Internet speeds are slower than those on the ground.
2. Connectivity in ATG systems depends on the availability of ground towers, limiting coverage over oceans or unpopulated areas.

How expensive is this technology for airlines and passengers?

1. For Airlines:
   • Installing antennae and equipment is costly.
   • Retrofitting older aircraft is challenging, but Air India is likely to incorporate Wi-Fi equipment during its ongoing $400-million fleet retrofit program.
2. For Passengers:
   • Currently free on Air India flights for a limited period.
   • Globally, airlines often charge for Wi-Fi, offering small free data packages or including it as a benefit for premium passengers or loyalty members.

Why is in-flight Internet gaining popularity?

1. Growing passenger demand for connectivity during flights.
2. Airlines view it as a potential ancillary revenue source.
3. Newer technologies are improving in-flight Wi-Fi speed and reliability.

Evaluating the Legacy of Manmohan Singh’s Leadership and 1991 Economic Reforms

Source: This post on Evaluating the Legacy of Manmohan Singh’s Leadership and 1991 Economic Reforms has been created based on  Remembering the impactful legacy of wise leadership published in The Hindu on 3rd January 2025.  

UPSC Syllabus topic: GS -3- Economic Development

Context: The article is a reflective analysis on the economic and social transformations India underwent during the tenure of Dr. Manmohan Singh, first as Finance Minister during the 1991 economic reforms and later as Prime Minister from 2004 to 2014. Evaluating the Legacy of Manmohan Singh’s Leadership and 1991 Economic Reforms

What was the significance of the 1991 economic reforms led by Manmohan Singh?

1. The 1991 economic reforms under Manmohan Singh as Finance Minister laid the foundation for India’s economic transformation.
2. High-caliber professionals like Montek Singh Ahluwalia, C. Rangarajan, P. Chidambaram, and others supported these reforms.
3. The reforms unleashed “animal spirits,” initiating structural changes that set the stage for high growth and development.

How did macroeconomic policies from 2004-2014 impact India’s growth?

1. Savings and Investment Surge:
   • Savings/GDP ratio rose to 23% by 2003-04 and investment reached 24% of GDP.
   • Investment to GDP climbed to 38% by 2010, achieving the highest levels in India’s history.
2. GDP Growth:
   • Growth averaged 8.5% annually (2004-2009) and 7.5% (2009-2014), totaling 7.8% p.a. for 2004-14.
   • Export growth (15%-18% annually) was maintained by stable exchange rates.
3. Resilience to Crisis:
   • A fiscal/monetary policy stimulus enabled recovery after the 2008-09 global crisis.

 How did structural changes accelerate during this period?

1. Sectoral Growth:
   • All sectors, organized and unorganized, contributed to demand and job creation.
   • Non-farm jobs grew at 7.5 million per year, a record.
2. Sector-Specific Gains:
   • Construction jobs doubled from 26 million (2004) to 51 million (2012).
   • Manufacturing jobs rose from 52 million to 60 million, especially in labor-intensive industries.
   • Modern services like telecom, banking, and healthcare expanded significantly.

What were the key milestones in employment and poverty reduction?

1. Rural Labor and Migration:
   • Non-farm job growth reduced agricultural workers for the first time post-independence.
   • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) supported rural employment.
2. Wage and Consumption Growth:
   • Real wages rose consistently until 2015, driving consumption of simple consumer goods.
3. Poverty Reduction:
   • The absolute number of poor fell for the first time; 138 million people rose above the poverty line between 2004-05 and 2011-12.

What factors led to economic challenges post-2015?

1. Policy Shocks:
   • Demonetization disrupted the unorganized sector and agriculture.
   • Poorly designed Goods and Services Tax (GST) harmed Micro, Small, and Medium Enterprises (MSMEs).
   • A strict national lockdown during COVID-19 caused a 5.8% contraction in FY21.
2. Economic Growth Slump:
   • GDP growth averaged 5.8% p.a. over 2014-2024, significantly lower than the previous decade.

How did employment and structural changes regress after 2015?

1. Unemployment Crisis:
   • Unemployment rose to a 45-year high of 6.1% in 2017-18, with youth unemployment doubling from 6% (2011-12) to 11% (2022-23).
   • Job creation dropped by 61%, with youth returning to farming, reversing earlier gains.
2. Manufacturing Decline:
   • Manufacturing’s share in GVA fell from 17% to 13% (2022), and ‘Make in India’ failed to generate significant jobs.
   • Labor-intensive industries like textiles and leather lost jobs and exports.

What are the broader implications of these economic challenges?

1. Exports and Wage Growth:
   • Merchandise exports slowed, growing only 1.5x from 2014-2022, compared to 4x between 2004-2014.
   • Regular salaried workers fell from 23.8% (2019) to 20.9% (2023), while unpaid family workers increased.
2. Distress Indicators:
   • Gold-based loans and defaults are rising, signaling financial strain.
   • Aggregate demand is constrained, threatening India’s demographic dividend and its potential as a developed nation by 2040.

What lessons can be drawn from the contrasting decades of 2004-2014 and 2014-2024?

1. The 2004-2014 period demonstrated the transformative potential of strategic macroeconomic policies and inclusive growth.
2. The period after 2015 highlights the risks of poorly executed policies, stagnation in job creation, and reversal of structural progress.

Prelims Oriented Articles (Factly)

Sree Narayana Guru

News: The remarks of Kerala Chief Minister, at the inaugural session of the 92nd Sivagiri pilgrimage, on Sree Narayana Guru have set off a controversy. 

About Sree Narayana Guru 

• He was a saint, philosopher, social reformer who advocated social equality and spiritual enlightenment. 
• He was born in  Chempazhanthy, a village near Thiruvananthapuram, in the Ezhava family. 
• He coined the famous slogan “One Caste, One Religion, On God”, emphasising on the idea of universal brotherhood. 
• He was associated with Sree Narayana Dharma Paripalana Yogam, which has played a key role in promoting socio-political reforms in Kerala. 
• He launched the Aravipuram Movement on Shivaratri day of 1888 by installing a Shivalinga at Aravipuram, symbolising resistance against social injustice. 
• He has also authored several literary works like Daiva Dasakam, Atmavilasam, Brahmavidya Panchakam etc. 

Shendurney Wildlife Sanctuary

News: A four-day faunal survey, organised by the Travancore Nature History Society in collaboration with the Forest department, conducted at the Shendurney Wildlife Sanctuary has added to its biodiversity. 

About Shendurney Wildlife Sanctuary

 

• Location:
  • It is a protected area nestled in the southern part of the Western Ghats in the Kollam district of Kerala. 
  • It forms part of the Agasthyamala Biosphere Reserve. 
• Its name is derived from an endemic plant locally known as Chenkurinji. 
• The sanctuary is famous for its lush green forests, diverse wildlife, scenic landscape and serves as a paradise for nature lovers. 
• Flora and Fauna: 
  • Flora: The vegetation is dominated by tropical evergreen forests, semi-evergreen forests and moist deciduous forests. 
  • Fauna: Elephants, tigers, leopards, barking deer, Indian Hornbill, Flycatchers, Raptors etc. 

Working of in-flight Internet

News: Air India has announced the rollout of Wi-fi Internet connectivity services on selected domestic and international flights. 

Technologies used to provide in-flight internet

 

• It operates primarily on two kinds of technology:  
  • Ground based cellular towers-
  • An antenna, placed around the plane’s belly, picks up signals from the nearest tower on ground to provide in-flight internet connectivity. 
  • It is also known as Air to Ground Technology (ATG) 
  • Its major drawback is that connection is lost or disrupted when the plane passes over water bodies, deserts or sparsely populated areas without enough cellular towers. 
  • Satellite based connectivity-
  • An antenna, mounted on top of aircraft, is used to transmit internet from ground station to aircraft through satellites.  
  • It offers wider coverage and seamless connectivity, particularly when aircraft is flying over regions without ground towers. 

Working of in-flight internet connectivity 

• Multiple Wi-Fi antenna are there inside the aircraft cabin, which receive signals from passengers’ devices. These in cabin antenna transmit signals to an on-board server. 
• After this, the process is different for both ATG and satellite-based connectivity. 
• In ATG technology, antenna is used to transmit signals from the server on board the aircraft to on-land cellular towers. In return, the tower responds with signals to the aircraft. 
• In satellite-based connectivity, antenna is used to transmit signals to a satellite, which relays them to a ground station. In response, signals are sent from the ground station to the satellite, which relays them to the aircraft. 

Torrijos-Carter Treaties

News: Donald Trump has called the transfer of Panama Canal to Panama as foolish. This has brought Torrijos-Carter Treaties in the news. 

About Torrijos-Carter Treaties 

• They are two treaties which were signed by the United States and Panama in 1977. 
  • Panama Canal Treaty: It provided for joint US-Panama control until December 31, 1999, after which Panama will take full control of canal operations and become primarily responsible for its defense. 
  • Permanent Neutrality Treaty: It declared the canal to be open for all nations, though the US has the right to defend the neutrality of the canal and have priority passage in military emergencies. 

Reasons for Trump being upset with Panama 

• High Transit Fees: Panama Canal Authority (ACP) has imposed high transit fees on US vessels. In 2023, due to droughts in Lakes Gatun and Alhajuela, ACP has reduced the number of slots for crossing ships by 36%, leading to an increase in transit fees. 
• Increased Chinese presence: Chinese presence in the Panama Canal has increased significantly, especially after 2017, when Panama became the first Latin American country to sign a Belt and Road Initiative (BRI) agreement. 

Response of Panama’s President Jose Raul Mulino 

• He defended the transit rates by arguing that transit rates are set as per international standards and decided by a procedure. 
• He denied the claims of Chinese involvement, citing the importance of sovereignty for the people of Panama.