9 PM UPSC Current Affairs Articles 4 April 2025

Mains Oriented Articles

GS PAPER - 2

India should lower tariffs and boost global trade ties

Source: The post India should lower tariffs and boost global trade ties has been created, based on the article “Should India reduce tariffs given the U.S.’s moves?” published in “The Hindu” on 4 April 2025. India should lower tariffs and boost global trade ties.

UPSC Syllabus Topic: GS Paper2-International Relations-Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Context: U.S. President Donald Trump imposed reciprocal tariffs on various countries, including India, causing uncertainty in global trade. In response, India reduced some tariffs and initiated talks for a bilateral trade deal. This article explores whether India should further reduce tariffs and how it should respond to U.S. trade moves.

For detailed information on India’s import tariffs read this article here

Impact of Tariffs on Economic Growth

1. Lower Tariffs Promote Efficiency: Economists agree that lower tariffs reduce consumer prices and push domestic industries to become more efficient. For example, if a car costs ₹5 lakh but a 20% tariff raises its price to ₹6 lakh, the consumer pays more, while the inefficient local producer gains.
2. Uniform Tariff Rates Are Better: It is better to have a single or very few tariff rates. Multiple and uneven rates distort decision-making in businesses and reduce overall efficiency in the economy.
3. Example from India: High tariffs in India have protected inefficient producers. Economists argue that if an Indian product, like a car, cannot compete without tariff protection, it should not be produced under such a system.
4. Effect on Global Trade: Tariffs disrupt global supply chains. They lower efficiency and slow down overall economic activity by increasing costs across countries.

Purpose and Effectiveness of Trump’s Tariffs

1. Reason for the Tariffs: The main goal was to pressure countries to lower their trade barriers. Trump’s administration believed this was necessary to fix trade imbalances and boost U.S. manufacturing.
2. Effectiveness in Question: The strategy led some countries to negotiate. But it also created uncertainty in global trade. Economists noted that this approach was likely chosen because the WTO system has become slow and ineffective.
3. Long-Term Impact Is Unclear: While the tariffs forced some changes, they also damaged global trade relations. The overall strategy lacked clear goals and may not bring lasting results.

Non-Tariff Barriers – A Bigger Concern

1. Difficult to Identify: Non-tariff barriers (NTBs) like safety rules and quality standards are hard to measure. For example, Europe’s strict sanitary standards on grapes can indirectly act as trade barriers.
2. Used Widely: Almost every country, including India, uses NTBs. These affect nearly all sectors and are often not visible like tariffs.
3. Harmful to Trade: NTBs raise compliance costs, delay entry into markets, and are more restrictive than tariffs in some cases.
4. Complex Regulations: They often involve lengthy procedures and vary between countries, making trade difficult, especially for small exporters.

Best Path for India’s Trade Policy

1. Reduce Tariffs Gradually: India should lower tariffs step by step. Example: Yashwant Sinha’s reforms in the 1990s reduced peak tariffs annually and helped attract investment.
2. Address Non-Tariff Barriers: India should simplify standards and remove hidden restrictions that protect local firms unfairly.
3. Negotiate Free Trade Agreements: India should sign FTAs with key economies like the U.S., EU, UK, and Japan. This would open markets and improve global competitiveness.
4. Ensure Policy Predictability: Announcing tariff cuts in advance will help industries plan better and invest with confidence.

Conclusion:

India must shift from protection to efficiency. Gradual liberalisation, tackling non-tariff barriers, and stronger trade partnerships can make India more competitive and better integrated into the global economy.

Question for practice:

Discuss how India can respond effectively to U.S. trade moves like tariffs to strengthen its global trade position.

GS PAPER - 3

India is improving its undersea cable network

Source: The post India is improving its undersea cable network has been created, based on the article “Why are undersea cables important?” published in “The Hindu” on 4th April 2025. India is improving its undersea cable network.

UPSC Syllabus Topic: GS Paper3-Achievements of Indians in science & technology; indigenization of technology and developing new technology.

Context: India is witnessing the arrival of new undersea cable systems like Airtel’s 2Africa Pearls, significantly boosting international internet capacity. This development has renewed focus on the importance of subsea cables, India’s current infrastructure, associated risks, and needed reforms to strengthen digital connectivity.

For detailed information on Submarine Cables and India- Threats and Vulnerabilities read this article here

Undersea Cables and Their Importance

1. Undersea cables are the main link connecting the world’s internet networks.
2. These are fiber optic cables laid on the ocean floor, protected by thick padding to survive harsh sea conditions.
3. They carry about 90% of the world’s data, 80% of global trade, and $10 trillion in financial transactions, according to Goldman Sachs.
4. There are around 600 undersea cables operating globally.
5. At each “landing point,” usually a manhole near the shore, these cables go inland to a “landing station” that connects them to major networks.
6. India’s latest cable is Airtel’s 2Africa Pearls system, with Meta’s investment, adding 100 terabits per second of capacity.
7. Earlier in 2024, the SEA-ME-WE-6 cable also landed in Chennai and Mumbai.

These cables are critical for internet access, trade, and secure communication.

India’s Current Cable Infrastructure

1. India connects globally through cable landing hubs mainly at Mumbai and Chennai.
2. Currently, 17 international cable systems land in India.
3. Two key domestic projects are the Chennai–Andaman & Nicobar Islands (CANI) and the Kochi–Lakshadweep Islands systems.
4. About 95% of India’s subsea cable capacity enters through a 6-km stretch in Versova, Mumbai, increasing risk.
5. Despite this, India accounts for only 1% of global cable landing stations and 3% of subsea cable systems.
6. This shows the need for greater investment in infrastructure and diversified routes.

Risks and Vulnerabilities

1. Overdependence on Versova makes India’s network vulnerable to disruptions.
2. In contrast, Singapore, a much smaller country, has more cable landings than India.
3. A disruption in the Red Sea can impact 25% of India’s internet traffic. This happened two years ago due to cable cuts caused by Houthi strikes.
4. India lacks domestic cable repair ships and storage depots, which delays emergency repair.
5. Laying cables in India requires 51 permissions from various departments like Home Ministry, Environment Ministry, and local bodies, causing long delays.
6. Fishing trawlers frequently damage cables near the coast, adding to the risk.

Steps to Improve India’s Subsea Cable Infrastructure

1. Streamline permissions: Simplify the current 51-step approval process to speed up deployment.
2. Expand landing hubs: Reduce reliance on Versova by developing landing stations along other coastal areas.
3. Increase domestic repair capacity: Invest in Indian repair ships and cable storage facilities to reduce dependency on foreign help.
4. Protect coastal cables: Strengthen laws and practices to prevent damage from fishing trawlers.
5. Diversify cable routes: Avoid traditional trade routes to reduce risks and increase resilience.
6. Plan for future demand: With rising data usage, India must build capacity in advance.

Question for practice:

Examine the current state of India’s undersea cable infrastructure and the steps needed to strengthen its digital connectivity.

India Balances Digital Connectivity and National Sovereignty

Source: The post India Balances Digital Connectivity and National Sovereignty has been created, based on the article “The other space race — the geopolitics of satellite net” published in “The Hindu” on 4th April 2025. India Balances Digital Connectivity and National Sovereignty.

UPSC Syllabus Topic: GS Paper3- Science and Technology- Achievements of Indians in science & technology; indigenization of technology and developing new technology.

Context: India’s remote regions still lack fiber optic and cellular network access. Recent partnerships between SpaceX’s Starlink and Indian telecom giants Airtel and Jio aim to bridge this digital gap. This move brings significant implications for economic value, national sovereignty, and geopolitical influence in an era where internet infrastructure is increasingly space-based.

Reason for India turning to satellite Internet like Starlink

1. Many regions in India still lack fiber optic cables and cellular towers.
2. Starlink provides high-speed internet to remote areas without needing terrestrial infrastructure.
3. For Airtel and Jio, the partnership reduces the cost of expanding networks.
4. For SpaceX, it opens access to India’s large market.
5. It also helps navigate India’s complex regulatory landscape by routing Starlink through domestic companies.
6. This move avoids reliance on Chinese systems like China’s GuoWang and reflects a preference for a democratic alliance.

Geopolitical implications of using Starlink in India

1. Increased U.S. Influence: Starlink, a U.S.-based network, may bring foreign control over India’s digital infrastructure. This is sensitive, especially as China expands its GuoWang satellite system.
2. Strategic Realignment: Choosing Starlink may reflect India’s tilt toward democratic partners in the Indo-Pacific region.
3. Monopoly Risks: Starlink operates over 7,000 satellites, while OneWeb has fewer than 650 and Amazon’s Kuiper is still in early stages. This dominance raises concerns about competition and pricing.
4. Sovereignty Concerns: Dependence on a foreign network raises security risks. SpaceX once cut Starlink service to Ukraine during a military operation, showing how private firms can exert state-level influence.

India balancing economic benefits and digital sovereignty

1. Partnering with Private Players: Collaborating with Airtel and Jio helps India access advanced technology while managing local regulations.
2. Leveraging Local Control: Requiring local data storage and technology transfer in agreements helps protect India’s digital autonomy.
3. Expanding Indigenous Capabilities: Continued investment in ISRO’s satellite projects can strengthen India’s independent capabilities and long-term strategic position.
4. Involving BSNL: Including state-owned BSNL, which has strong rural presence, could offer direct oversight and reach. Its absence is a missed opportunity.

Challenges for the future

1. Affordability: Satellite internet may remain too costly for rural users.
2. Government Subsidies: May be required, putting pressure on public finances.
3. Monopoly Risk: Starlink’s lead in satellite count poses long-term risks for market fairness.
4. Private Control: Starlink’s role in Ukraine’s military situation shows how private firms can influence national affairs.
5. BSNL’s Exclusion: Reduces the government’s role in critical infrastructure.
6. Global Governance: Lack of coordination on space debris and satellite traffic may worsen with time.

Opportunities for the future

1. Expanding Internet Access: Partnerships with Airtel and Jio can bring the Internet to underserved regions.
2. Enhanced Strategic Control: Data localization and tech-sharing provisions can strengthen national control.
3. Bottom of the Pyramid Innovation: Affordable packages can serve low-income users while staying profitable.
4. Digital Sovereignty: India can move towards autonomy by building its own satellite systems through ISRO.
5. A Global Model: The Airtel-Jio-Starlink approach may become an example of how to balance market access with sovereignty.

Conclusion: The Starlink partnership offers India a chance to improve digital connectivity, but it also brings strategic, economic, and governance challenges. India must act carefully to maximize benefits without losing autonomy.

Question for practice:

Examine how India’s partnership with Starlink reflects a balance between expanding digital connectivity and safeguarding national sovereignty.

Prelims Oriented Articles (Factly)

Cape Town Convention, 2001

News: The Rajya Sabha passed the Protection of Interests in Aircraft Objects Bill, 2025. The Bill seeks to give legal effect to the Convention on International Interests in Mobile Equipment (also known as Cape Town Convention of 2001) and Protocol to this Convention in their application to India.

About Cape Town Convention, 2001

• It is an international treaty that aims to facilitate asset-based financing and leasing of high-value mobile equipment like aircraft, helicopters, and aircraft engines by providing a uniform legal framework and international registration system.
• It was adopted at a conference in Cape Town in November 2001 under the International Civil Aviation Organisation (ICAO) and the International Institute for the Unification of Private Law (UNIDROIT).
• Objectives:
  • Facilitate asset-based Financing
  • Protect lenders and investors
  • Create an international registry
  • Standardize legal framework across countries
• India’s status: India is a signatory to the convention (in 2008), but the Indian Parliament has not ratified the same. Once the legislation is enacted, the Convention will get legal backing in India and ensure compliance with the international norms related to leasing of aircraft.

About Protection of Interests in Aircraft Objects Bill, 2025

• Key Provisions of the Bill:
  • Legal compliance: It empowers the central government to make rules to implement the provisions of the Convention and the Protocol.
  • Creditor remedies: In case of default, allows creditors or lessors to reclaim possession of aircraft within two months or a mutually agreed period.
  • Domestic registry: It designates the Directorate General of Civil Aviation as the registry authority for the convention.
  • Mandatory registration: It requires all financial interests in aircraft to be registered in the International Registry under Cape Town Convention.

North Sentinel Island

News: A U.S. national was recently arrested in the Andaman and Nicobar Islands for allegedly trespassing into the restricted tribal reserve area of North Sentinel Island.

About North Sentinel Island

• North Sentinel Island is part of the Andaman and Nicobar Islands in the Bay of Bengal. It is in the northern part of the Indian Ocean.
• It is encircled by sharp coral reefs and is situated away from the main cluster of islands in the archipelago. It has no natural harbors.
• The island has a tropical climate and is entirely forested, primarily covered in tropical and subtropical moist broadleaf forests.  
• It is inhabited by the indigenous Sentinelese people. They are among the most isolated tribes in the world and strongly resist any form of outside contact.
• The Sentinelese practice primitive hunting and gathering. They use bows, arrows, and spears for hunting and defense.
• They have not developed agriculture or metalworking.
• In 1956, India declared North Sentinel Island a tribal reserve. The Sentinelese are classified as a Particularly Vulnerable Tribal Group (PVTG).

Heard Island and McDonald Islands (HIMI)

News: The Heard and McDonald Islands have been in the news due to their unexpected inclusion in the list of trade partners subject to the 10% baseline tariff imposed by former U.S. President Donald Trump’s administration. Heard Island and McDonald Islands (HIMI)

About Heard Island and McDonald Islands (HIMI)

• They are situated in the southwest Indian Ocean, southwest of Perth (Australia).
• These islands are an Australian territory, transferred from the United Kingdom in 1947.
• The islands lie within the ‘Furious 50s,’ a region of the Southern Ocean known for its persistently strong and harsh winds.
• Geographical Features:
  • The McDonald Islands are small and rocky.
  • Heard Island is much larger, with 80% of its surface covered in ice.
  • Heard Island features Big Ben, a massive mountain range, with Mawson Peak as its highest point and an active volcano.
• Wildlife: The islands support large breeding populations of elephant seals, fur seals, petrels, albatrosses, and penguins.
• Heard Island is home to endemic species, including the Heard Island Cormorant and a subspecies of sheathbill known as the Heard Island Sheathbill.

Biological Weapons Convention (BWC)

News: The Biological Weapons Convention (BWC) has completed 50 years recently.

About Biological Weapons Convention

• It was the first multilateral treaty categorically banning a class of weapon of mass destruction (WMD).
• Aim: It effectively prohibits the development, production, acquisition, transfer, stockpiling and use of biological and toxin weapons.
• Signed: 10 April 1972
• Entered into force: 26 March 1975 (50 years completed in 2025)
• The BWC supplements the 1925 Geneva Protocol, which had prohibited only the use of biological weapons.
• It is a legally binding treaty.
• Duration to join the treaty: The BWC is a multilateral treaty of indefinite duration that is open to any country.
• Verification: The BWC does not have an inspection regime to verify compliance.
• Members: 188 countries, with Comoros the most recent to become a member.
• India is a member.
• Four states have signed but not ratified the treaty: Egypt, Haiti, Somalia and Syria.
• Five countries have neither signed nor acceded to the treaty: Chad, Djibouti, Eritrea, Israel and Kiribati.

Binturong

News: Rare Binturong spotted by the Wildlife Trust of India’s Garo Green Spine project team in the Narang Wari Village Reserve Forest (VRF) in Meghalaya’s Garo Hills.

About Binturong

• They are the largest member of the civet family (Viverridae). They are also known as the bearcat.
• They are primarily nocturnal animals.
• Physical feature: They are one of two carnivorous species with a prehensile tail which helps in climbing. (The other is the kinkajou).
• Distribution and habitat: They prefer tropical rainforests and dense forest cover. They are found in wide range from northeast India to Southeast Asia. In India, they have been recorded in Assam’s Manas National Park and also in Kaziranga National Park in 2024.
• Ecological significance: They play a vital role in forest regeneration, aiding in seed dispersal and supporting the survival of many other species.
• Conservation:
  • IUCN status – Vulnerable
  • CITES – Appendix III
  • Schedule I of the Wild Life (Protection) Act, 1972
• World Binturong Day is held every second Saturday of May.