AMIGOS IAS Daily Current Affairs (23^rd Sept 2024)

On India’s Trade Deficit

GS 3: Economy: Understanding Trade deficit

Why is it in the news?

• India’s trade deficit has recently spiked, raising economic concerns. After a positive start to goods exports in the first quarter of 2024-25, exports fell by 1.5% in July and 9.3% in August, coinciding with record-high imports of $64.4 billion in August.
• This led to a merchandise trade deficit of $29.7 billion, the second largest since October 2023.

An Overview

Factors behind the trade deficit

• The widening deficit results from shrinking exports and rising imports. Imports grew by 7.5% in July and 3.3% in August, while key sectors saw declines: oil exports fell by 22.2% in July and 37.6% in August, and gems and jewellery exports dropped over 20%.
• Other sectors like drugs, pharmaceuticals, and electronics also experienced slowed growth, further impacted by the slowing Chinese economy affecting segments like stone and iron ore.
• Despite a decline in oil prices, India’s oil import bill decreased to $11 billion, creating a petroleum deficit at a three-year low. In contrast, gold imports surged to an all-time high of $10.1 billion in August due to a reduced import duty from 15% to 6%, rising gold prices, and increased domestic demand for the festive season.

Assessing the risk of a widening trade deficit

• However, officials downplay the risks of the widening trade deficit. According to the Commerce Secretary, India’s growth outpaces global demand, making a trade deficit typical for a developing economy. As long as foreign exchange issues are minimal, the situation should not be alarming.
• Positive foreign capital inflows and a record $675 billion in foreign exchange reserves—sufficient to cover 11.6 months of imports—offer a buffer. Additionally, services exports reportedly rose over 10% from April to August.

Global trade landscape and future challenges

• Looking ahead, global trade is projected to grow faster in 2024 than in 2023, though demand remains weak in many developed markets.
• However, geopolitical risks, including U.S. tariffs on Chinese goods, complicate India’s trade landscape. With China reducing imports, there is a risk of excess supply in non-U.S. markets, which could pressure prices.
• The Indian government aims to boost services and goods exports to a trillion dollars each by 2030, but the path is challenging.
• According to Chief Economic Adviser, the global economic slowdown, along with rising tariffs and new trade regulations like the EU’s Carbon Border Adjustment Mechanism, could hinder export growth. While opportunities exist for growth in the coming years, the overall outlook remains challenging.

California’s Anti-Deepfake Bill

GS 2: International Relations: Regulating AI-generated Content

Why is it in the news?

• California Governor has signed three bills targeting deepfake and AI-generated content in political advertising, a response to Elon Musk’s sharing of a deepfake video featuring Vice President Kamala Harris.
• It will be illegal to knowingly distribute materially deceptive election communications, including deepfakes, in California.

Key Provisions of the New Bills

• AB 2655: This bill, known as the Defending Democracy from Deepfake Deception Act of 2024, requires large online platforms to remove or label election-related deepfakes during specific periods.
• AB 2839: This expands the timeframe for prohibiting deceptive AI-generated content in election ads.
• AB 2355: This mandates that electoral ads using AI or altered content disclose such modifications.
• Hence, these measures empower regulators and law enforcement to address the misuse of manipulated media during elections.

Enforcement and Challenges

• The effectiveness of these bills in practice remains uncertain, particularly since they primarily apply to California. Musk has challenged their legality, claiming they violate the U.S. Constitution.
• However, compliant AI companies have already implemented measures to filter deepfakes related to election candidates.
• AB 2655 specifically requires platforms to block or label deceptive content, but also exempts parody or satire, complicating enforcement efforts.

Implications for Violators

• Consequences for violations are not clearly defined, and non-compliance with disclosure requirements does not constitute a misdemeanour. This lack of stringent penalties may limit the legislation’s impact.
• While figures like Musk may evade significant repercussions, the laws could shed light on the rising issue of AI-generated misinformation. Continuous violations could eventually lead to legal challenges for platforms like X, particularly as advertisers grow more cautious.

Canada’s International work permit system to limit immigration

GS 2: International Relations: Limiting immigration

Why is it in the news?

• Canadian Prime Minister Justin Trudeau has announced adjustments to the international work permit system aimed at decreasing the number of immigrant workers. He stated that Canada will issue 35% fewer international student permits this year, with a further 10% reduction planned for next year.
• Trudeau emphasized the need to reduce low-wage, temporary foreign workers and shorten their work terms, stating that the labour market has shifted since post-pandemic adjustments.

More about the news

• The government’s decision is driven by concerns over infrastructure strain in cities, rising rents, and a significant increase in immigration.
• In 2024, Canada issued approximately 485,000 student permits, down from over 500,000 in 2023, with expectations to decline to 437,000 in 2025. Trudeau noted the need to combat abuse of the system, as some students have exploited it to seek asylum.

Changes to Work Permits

• New measures include enhanced detection of fraudulent claims, aiming to reduce the temporary resident population from 6.5% to 5%.
• New restrictions on Postgraduate Work Permits (PGWPs) will also take effect. Currently valid for three years, the government seeks to reduce PGWP issuance by 175,000 over the next three years.
• Spousal work permits will be cut by 50,000 and will only be granted if the partner is enrolled in a master’s program for at least 16 months.
• Additionally, students must pass a language proficiency test, the Canadian Language Benchmark (CLB), with specific scores required for applications submitted from November 1 onward.
• However, Graduates from public college programs will still be eligible for PGWPs if their field aligns with occupations facing labour shortages.

Impact on Students and Future Prospects

• Students who completed diplomas in August face uncertainty, particularly those in business administration or IT, which may not meet long-term job needs. Colleges offering these programs might see a drop in international enrolment unless they introduce new courses.
• Conversely, students with skills in plumbing, refrigeration, AI, and healthcare have better prospects for obtaining PGWPs.

Quad Summit: Key Takeaways from PM Modi’s US Visit

GS 2: International Relations: QUAD

Why is it in the news?

• Leaders of the Quad group—Prime Minister Narendra Modi, U.S. President Joe Biden, Australian Prime Minister Anthony Albanese, and Japanese Prime Minister Fumio Kishida—gathered for their sixth summit at Archmere Academy in Delaware.
• They announced a series of initiatives, including a new coast guard exercise, a logistics network, expanded maritime surveillance, and a project to combat cervical cancer.

Some of the Key takeaways

• A key initiative, the ‘Quad Cancer Moonshot,’ will see contributions from all four countries to combat cervical cancer, with India committing $10 million for screening. The Serum Institute of India and Gavi plan to provide up to 40 million vaccines for the region, pending approvals.
• Additionally, the Quad-at-Sea Ship Observer Mission is set to launch in 2025, aimed at improving interoperability and maritime safety, along with future coast guard missions.
• A pilot logistics network project will facilitate sharing airlift capacity among Quad countries to enhance disaster response capabilities.
• The Maritime Initiative for Training in the Indo-Pacific (MAITRI) was also introduced to train Quad partners in monitoring and securing their waters. India will host the inaugural MAITRI workshop in 2025. Further, a maritime legal dialogue was established to uphold a rules-based order in the region.
• Quad members expressed serious concerns about maritime aggression, particularly with respect to China’s actions in the South China Sea, including tensions with the Philippines over the Sabina shoal. They condemned the dangerous use of coast guard and maritime militia vessels and opposed disruptions to other countries’ offshore resource activities.
• While the statement did not directly mention Russia, it included language that aligns with a condemnation of Russia’s invasion of Ukraine.
• The Quad countries expressed their unwavering support for the United Nations Charter and their deep concern for the war’s impact on food and energy security, especially for developing nations. They emphasized the need for a comprehensive, just, and lasting peace in line with international law.
• Furthermore, the Quad fellowship aimed at promoting Science Technology Engineering Mathematics (STEM) education has been expanded to include 50 scholarships worth $500,000 for students from the region to study at government-funded technical institutions in India.

India launches First Cancer Genomics Repository

GS 3: S & T: Cancer genomics repository to develop tailored treatments

Why is it in the news?

• India has launched its first-ever cancer genomics repository through the Indian Cancer Genome Atlas (ICGA) Foundation, aimed at enhancing the understanding of genetic variations in cancer among Indian patients.
• The data portal will serve as a repository for India-specific cancer genomics, providing valuable resources for researchers worldwide to develop tailored treatments.
• Historically, cancer treatments in India have relied on Western data sets, which may not accurately reflect the molecular differences observed in Indian patients.

More about the news

• Currently, the portal features data from 50 breast cancer patients, with plans to expand to 500 patients in the coming months. It will also include additional cancer types as the database grows.
• Experts emphasize that making this cancer data publicly accessible is a pivotal step in accelerating scientific discoveries and improving patient outcomes. He noted that sharing this data empowers researchers and clinicians to collaborate and innovate in cancer treatment.
• While India accounts for nearly 20% of the world’s cancer population, only 0.2% of the Indian data is utilized in global cancer research. Further, many cancer drugs that are developed based on Western data are often ineffective for Indian patients due to significant molecular differences in cancer development.
• The new portal is recognized as India’s first cancer Multi-Omics Data Portal, providing comprehensive multi-omics data for breast cancer patients, including genomic and proteomic information. Built on the cBioPortal platform, it ensures seamless integration with global cancer research efforts.
• The process involves collecting cancer cells from Indian patients, conducting genetic analyses, and uploading the data, which will include DNA, RNA, and protein profiles, along with clinical outcomes.
• ICGA has assured that all patient consent and privacy measures are in place, and datasets will be available upon request after approval from a scientific panel. This initiative aligns with the National Institutes of Health’s Cancer Genome Atlas program in the US, which has significantly contributed to global cancer research.