Daily Current Affairs | April 2 2025

1) India-USA Trade Deal

• India-US trade relations involve ongoing negotiations due to tariff barriers and market access restrictions.

• Current negotiations focus on a Bilateral Trade Agreement (BTA) where India may lower tariffs on US goods in exchange for trade concessions.

• India agreed to Terms of Reference (ToR) for the BTA after PMO intervention. The ToR provides a negotiation framework requiring high-level approval.

Background

• 2018: US imposed higher tariffs on steel and aluminium; India retaliated with tariffs on 28 US products.

• 2019: US removed India from the Generalized System of Preferences (GSP), citing inequitable market access.

• US announced reciprocal tariffs under Trump's trade policy, effective April 2.

Implications of US-India Trade Dispute

• Economic Impact :

  • Lower tariffs benefit US businesses but may hurt Indian industries.

  • Continuation of tariffs could escalate trade tensions.

• Geopolitical Impact :

  • China Factor: US wants stronger India ties to counter China.

  • Atmanirbhar Bharat vs. Globalization: India must balance self-reliance with foreign trade partnerships.

• Market Reaction : April 1, 2025: Indian stock market declines over tariff fears.

USTR Criticism Against India

• Agricultural & Food Trade Barriers :

  • India mandates non-GM and animal-free feed for imported dairy, which the US deems "non-scientific."

  • US criticises India's import restrictions as "opaque and unpredictable."

• Intellectual Property (IP) Issues: India on ‘Priority Watch List’ due to weak trade secret protections & slow patent approvals.

• Medical Device Price Caps: India’s price controls on coronary stents and knee implants discourage US firms.

• Data Localization: RBI mandates that foreign payment firms store transaction data within India, complicating US operations.

• Payment Services Restrictions: Visa, Mastercard face hurdles due to exclusive data storage requirements.

• Satellite & Telecom Market Access: US seeks fewer regulatory hurdles for companies like Starlink to operate in India.

USTR Criticism Against India

• US demands favor American corporations at the cost of India's food security, small industries, and cultural values.

• India supports fair trade but insists on reciprocal and sovereignty-respecting agreements.

2) India-Chile Relations

• India-Chile signed a Preferential Trade Agreement (PTA) in 2006, expanded in 2017.

• Both countries are now negotiating Comprehensive Economic Partnership Agreement (CEPA) to replace PTA with a broader framework covering goods, services, and investment.

• Expected benefits: Market access, trade diversification, investment protection, and critical mineral supply chain stability.

Importance of Chile

• Bilateral trade (2022-23): $2.64 billion; India imports copper, lithium, minerals and exports of Pharma, automobiles, textiles.

• Chile is India’s third-largest trading partner in Latin America after Brazil and Mexico.

• Gateway to Antarctica: PM Modi highlighted Chile’s strategic role due to Punta Arenas, a key departure point for Antarctic research.

• Critical Minerals Supply: Chile is a leading producer of copper and lithium, crucial for EVs and renewable energy.

Other Areas of Cooperation

• Agriculture - India can contribute expertise in irrigation and digital farming, while Chile offers fruit and wine exports.

• Security Cooperation - Joint efforts against drug trafficking, terrorism, cybersecurity, and possible arms trade. With special focus on defence industrial manufacturing.

• Infrastructure - India’s expertise lies in digital public infrastructure, renewable energy, railways, space technology. This could allow Indian firms to expand in Latin America’s infrastructure sector.

• Geopolitical Cooperation - UNSC reforms, climate action, South-South cooperation, multilateral trade strengthening.

• Culture - Bollywood’s rising popularity in Chile strengthens people-to-people ties. Also, collaboration is possible in areas like Yoga, Ayurveda, tourism, and cuisine promotion.

About Chile

• Chile, a long, narrow country in western South America, stretches from the Andes Mountains to the Pacific Ocean.

• It's bordered by Peru and Bolivia to the north, Argentina to the east, and the Pacific Ocean to the west.

• The country features the Andes Mountains to the east, the Pacific Ocean to the west, and a variety of landscapes including deserts, plains, and glaciers.

• Capital: Santiago; Language: Spanish.

• Economy: Chile is known for its copper and other mineral resources, as well as its wine industry.

• Political Stability: Chile is considered one of South America's more stable and prosperous nations.

3) Rice Cultivation & Climate Change

• Recently, a report was published by Punjab Agricultural University, Ludhiana named “Rice Cultivation: A Contributor to Climate Change in Indian Punjab".

• The study draws a connection between rice cultivation in Punjab and Climate Change.

Significance

• Punjab's Role: Major contributor to India’s food security, especially wheat and rice.

• Green Revolution (1960s): Boosted rice production but caused environmental stress.

• Study Focus: Examines climate impact of Punjab’s large-scale rice cultivation.

Key Highlights of the Report

• Rising Rice Cultivation and Temperature Increase :

  • Rice acreage: 70% of Punjab’s central plains; lower in maize, vegetable, and cotton-growing regions.

  • Temperature rise: 3.7°C increase in Ludhiana (1970–2020); 0.6°C in Bathinda; 0.1°C in Nawanshahar.

  • Cause: Water retention in paddy fields leads to warmer nights, reducing diurnal temperature variation.

• Altered Monsoon Patterns :

  • Pre-2000: Monsoon lasted 77 days.

  • Post-2000: Extended by 0.8 days/year; reached 118 days in 2021.

  • Rainfall decline: 6 mm per year drop; below normal in 18 out of 21 years (2000–2020).

  • Cause: Excess moisture from rice fields disrupts rainfall patterns.

• Increased GHG Emissions : Methane (CH₄) and Nitrous Oxide (N₂O): Generated in waterlogged paddy fields, intensifying warming.

• Groundwater Depletion : Over-extraction depleting water tables which threaten Punjab’s agricultural sustainability.

4) WAQF Bill Debate

• The Lok Sabha passed the Waqf (Amendment) Bill 2025 which amends Waqf Act, 1995.

• The House also gave approval to the Mussalman Wakf (Repeal) Bill 2024 which repeals Mussalman Wakf Act 1923.

• Purpose - Address loopholes, regulate Waqf properties, and improve dispute resolution.

• Opposition concerns - Potential government interference in Muslim religious affairs.

Key Features

• Property Classification - District Collector (not Waqf Tribunal) to determine Waqf status. Disputed properties treated as government land until resolved.

• Survey - Survey Commissioner replaced with District Collector/Deputy Collector for better efficiency.

• Representation in WAQF Boards - Non-Muslim CEO and 2 non-Muslim members proposed.

• Proposal to remove Section 107, allowing adverse possession claims on encroached Waqf land.

Opposition Concerns

• Government interference in religious affairs and property classification.

• Legalization of land encroachment through Limitation Act changes.

• Politicization of Waqf governance through forced non-Muslim representation.

• Power of DC to Classify WAQF land - Risk of misclassification and government overreach.

• Survey of WAQF Properties - Centralized power may compromise fairness.

Govt’s Arguments

• Need for digital listing of Waqf properties to improve transparency.

• Curbing misuse of Waqf by use, where properties have been declared Waqf without formal endowments.

• Bringing expertise and accountability to Waqf Boards through non-Muslim representation.