January 8, 2025

Current Affairs

Microsoft to invest $3 billion on AI, cloud infrastructure in India

Context: Microsoft CEO has announced plans to invest $3 billion in India in AI and cloud infrastructure, including setting up new data centres over the next two years. The company is also aiming to train 10 million Indian people with AI skills by 2030.

Relevance of the Topic: Mains: Key facts about AI, Cloud infrastructure in India, Government Initiatives.

Major Highlights:

Efficiency metrics for AI applications: The formula to measure the efficiency of AI applications is stipulated to be: Tokens per dollar per watt.
- Tokens per dollar per watt signify how many tokens (units of information) can be generated per dollar spent on computing power, per unit (watt) consumption of energy, required to produce those tokens.

Key Terms:

What is Artificial Intelligence?

Artificial intelligence (AI) is broadly defined as the capability of a machine (computer systems) to imitate intelligent human behaviour. E.g., Machines can perform cognitive tasks like thinking, perceiving, learning, problem-solving and decision-making.

What is Cloud Computing?

Cloud computing involves the rental of computing resources—such as servers, storage, applications, and databases— over the internet, as opposed to owning physical infrastructure. At its core, cloud computing relies on the infrastructure provided by data centers.
E.g., Software as a Service (SaaS): SaaS grants users access to software applications hosted by the cloud service provider.

What are Data Centres?

Data centers are highly specialised facilities designed to house computing systems and their related components, such as, physical hardware, servers, networking equipment and storage systems.
The primary purpose of data centers is to process, store, and distribute data for various applications and services, such as websites, cloud computing, and enterprise operations.
Data centers empower organisations to handle large volumes of data securely and efficiently and enable cloud computing to function seamlessly.

Potential of Data Centres in India

India aims to become a global hub for AI innovation and data centre development.
Current capacity:
- As of 2024, India's data centre capacity is at approximately 1,255 MW, which is expected to surge to 17 GW by 2030.
- India holds 20% of global data but only 3% of data centre capacity.
Expansion potential of data centres in future, due to:
- Increasing digitalisation & data consumption
- Rise in demand for AI and generative AI projects
- Nationwide roll-out of 5G
- Need for edge computing to allow data processing on devices
- Need to store data locally (within National borders).
Concentration of data centres in India: About 95% of the existing data centre capacity is in metros and big cities. Mumbai has >50% of current capacity due to its central location, reliable power and cable landing stations.

Government Initiatives in this Regard

1. Data Localisation Rules: India’s laws mandate that certain data be stored locally, such as:

Reserve Bank of India's Directive (2018) mandates payment system providers to store entire payment data (transaction details, customer information and related data) within India.
IRDAI (Maintenance of Insurance Records) Regulation, 2015 requires covered organisations to store insurance data within India.
The draft Digital Personal Data Protection Rules focus on targeted data localisation, addressing children's online age verification challenges, and data protection.
- Digital Personal Data Protection Act permits cross-border data transfers to all countries, unless restricted by the Central Government by notification.

2. Digital India Mission:

Digital India campaign launched in 2015, aims at the development of secure and stable digital infrastructure (including data centres), delivering government services digitally, and universal digital literacy.

3. IndiaAI Mission:

The Rs 10,370 croreIndiaAI Mission aims to:
- establish a computing capacity of more than 10,000 GPUs.
- help develop foundational models with a capacity of more than 100 billion parameters trained on datasets covering major Indian languages for priority sectors like healthcare, agriculture, and governance.
The idea is that if such an infrastructure exists in the country, start-ups could plug into it for developing AI systems.
Of the total outlay, Rs 4,564 crore has been earmarked for building computing infrastructure.

Read More: IndiaAI Mission

Global Water Monitor Report 2024

Context: According to the Global Water Monitor Report 2024, climate change has been wreaking havoc on Earth’s water cycle by disrupting how water circulates between the ground, oceans and atmosphere.

Relevance of the Topic: Prelims: Water Cycle; Global Water Monitor Report 2024.

Water Cycle

It involves the continuous circulation of water in the Earth-atmosphere system.
There are many processes involved in the water cycle, the most important are evaporation, transpiration, condensation, precipitation, and runoff.

Although the total amount of water within the cycle remains essentially constant, its distribution among the various processes is continually changing.
Most water cycles through the planet because of the energy from the Sun and changes in temperatures.
The water cycle is crucial as it not only enables the availability of water for all living organisms but also regulates weather patterns on the Earth.

Components and Processes of the Water Cycle

Components	Processes
Water storage in oceans	Evaporation, Evapotranspiration, Sublimation
Water in the atmosphere	Condensation, Precipitation
Water storage in ice and snow	Snowmelt runoff to streams
Surface runoff	Stream flow, freshwater storage, infiltration
Groundwater storage	Groundwater discharge springs

What is Climate Change?

Climate change refers to long-term shifts in weather patterns and average temperatures on Earth, primarily caused by human activities, such as the burning of fossil fuels, deforestation, and industrial processes.
Characterised by: Increase in greenhouse gas emissions, particularly carbon dioxide, which traps heat in the Earth's atmosphere and leads to global warming.
Impacts: Rising temperatures, changing precipitation patterns, melting glaciers and polar ice caps, sea-level rise, and altered ecosystems.
Consequences: Far-reaching consequences for human societies, ecosystems, agriculture, water resources, and natural disasters, posing significant challenges to global sustainability and the well-being of future generations.

Global Water Monitor Report 2024

Report: Global Water Monitor Report – 2024
Published by: Consortium of researchers from universities and organisations in countries like Australia, Saudi Arabia, China, Germany, Austria, USA, Netherlands and Denmark etc.

Key Global Findings

Climate change has intensified the water cycle by increasing the rate of evaporation, driven by rising air temperatures. This has resulted in increasing the strength, duration and rainfall intensity of monsoons, cyclones and other storm systems, causing severe flooding across the world.
Water-related disasters caused major damage in 2024. They caused over 8,700 deaths, displaced 40 million people, and inflicted more than US$550 billion in damages. Flash floods, landslides, and tropical cyclones were the worst types of disasters in terms of casualties and economic damage.
Both High rainfall and Drought are becoming more extreme. In 2024, months with record-low precipitation were 38% more common than during the baseline period of 1995-2005, while record-high 24h rainfall extremes were 52% more frequent.
Rainfall records are being broken with increasing regularity. For instance, record highs for monthly rainfall were set 27% more often in 2024 than in the year 2000, and daily rainfall records were set 52% more frequently.
Global temperatures continue to increase rapidly. Average air temperature over land area hit an all-time high, reaching 1.2°C above the 1995-2005 average. Over 111 countries experienced their warmest year yet, while 34 countries set new maximum temperature records.
Last year, most of the world’s dry regions experienced ongoing low values of the terrestrial water storage (TWS). However, the values increased in western, Central and Eastern Africa.
The outlook for 2025 shows increased risks. Seasonal climate forecasts and current catchment conditions signal potential worsening of droughts in northern South America, southern Africa, and parts of Asia. Wetter regions like the Sahel and Europe may face elevated flood risk.

Other Reports Cited

Nature journal – Study titled ‘Observed poleward freshwater transport since 1970’ (published in 2022) found that climate change had intensified the global water cycle by up to 7.4%.
The Intergovernmental Panel on Climate Change (IPCC) - In its sixth assessment report in 2021 said climate change will cause long-term changes to the water cycle. This would lead to more frequent and intense droughts and extreme rainfall events, the report added.

Read More: Impacts of Climate Change

Indonesia joins BRICS bloc as full member

Context: Indonesia has formally joined the BRICS group, a bloc of emerging economies featuring India, Russia, China and others, viewed as a counterweight to the West.

Relevance of the topic:

Prelims: Key facts about BRICS; New Development Bank.

Mains: BRICS as platform for South-South Cooperation, challenges faced by BRICS.

What is BRICS?

BRICS is an intergovernmental organisation comprising ten countries – Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, United Arab Emirates and Indonesia.
- The acronym ‘BRIC’ was coined by economist Jim O'Neill in 2001.
- Founding countries of BRIC: Brazil, Russia, India, and China.
- First formal BRIC summit: Held in 2009 in Yekaterinburg, Russia
- South Africa joined BRIC in 2010, transforming BRIC to BRICS.
New members:
- In 2024, four new members- Egypt, Ethiopia, Iran, and the United Arab Emirates - joined BRICS as full-time permanent members.
- In 2025, Indonesia was admitted as a full member of the BRICS.
BRICS was conceived as a counterweight to the Group of Seven (G7) developed economies, made up of the United States, Canada, the United Kingdom, France, Germany, Italy and Japan.

Objectives:

To promote economic growth, strengthen cooperation in areas like trade, investment, and infrastructure.
Coordination in global governance and advocating for reforms in institutions like the United Nations (UN) and International Monetary Fund (IMF).
Cultural and social exchange by enhancing people-to-people connections.

Economic Importance:

BRICS+ represents over 45% of the world's population and accounts for around 35% of global GDP, based on purchasing power parity.
Growing influence in global trade and investment through the New Development Bank.
Contingent Reserve Arrangement (CRA) under BRICS USD 100 billion CRA is established to provide financial support to member countries in times of balance of payments crises.

New Development Bank:

The New Development Bank (NDB) is a multilateral development bank established by BRICS.
Objective: To mobilise resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).
Initial authorised capital: $100 billion.
Headquarters: Shanghai, China.

BRICS as platform for South-South Cooperation:

BRICS grouping has emerged as a significant platform for fostering South-South cooperation in the evolving global order.

Diversified Representation: BRICS+ has included countries from Africa and Asia to enhance BRICS' representation of developing nations. Diverse BRICS gains legitimacy to advocate for Global South issues like fair-trade, climate justice, and technology access.
Economic Collaboration: Intra-BRICS integration encompasses free trade agreements and export-oriented strategies, including tariff exemptions and reductions. This has led to trade expansion, and rise in both inward and outward foreign direct investment.
Financial Independence:
- The New Development Bank (to finance infrastructure and development projects) is a credible alternative to existing financial institutions (IMF, World Bank dominated by western powers).
- BRICS nations have agreed to promote use of local currencies in trade. E.g., UAE and India trade in Rupees and Dirhams instead of the US Dollar.
- The plans to launch a common BRICS currency is under consideration.
Global Governance Reforms: BRICS have collectively called for reforms to the UN Security Council to include more representation from the Global South.
Technology Sharing: BRICS+ members share technology particularly in areas like digital payments and renewable energy. E.g., Collaboration in digital payment systems (India’s UPI and China’s Cross-Border Payment Systems).

Challenges faced by BRICS:

Diverse Interests:
- Member states have varying economic interests and geopolitical alignments which can hinder collective action. E.g., India and Brazil maintain strong ties with the US, while Russia and China adopt anti-West stances.
- New members like Iran and UAE add to the ideological diversity complicating consensus-building.
Lacks Institutional Framework: BRICS lacks formal treaty or secretariat, or enforcement mechanisms and thus relies on consensus-based decision-making. This makes it difficult for coordination and policy implementation.
External Pressures and Sanctions: BRICS members (particularly Russia) face economic sanctions from Western countries. This can limit their ability to cooperate and implement joint initiatives.
Internal Economic Challenges: Some BRICS members (such as Brazil and South Africa) face significant domestic economic challenges which can divert attention from regional cooperation.

BRICS+ marks an important step toward a multipolar world and empowerment of the Global South. However, the grouping needs to overcome internal divisions, address external pressures and build a strong institutional framework to meet its long-term goals and objectives.

India & U.S. to jointly manufacture Sonobuoys for Indian Navy

Context: In a significant development, India and the U.S. announced cooperation on co-production of U.S. Sonobuoys for the Indian Navy, a high-end technology that allows tracking submarines in the deep seas and oceans, to enhance undersea domain awareness (UDA).

Relevance of the Topic: Prelims: Sonobuoys, P-8I Maritime Aircraft.

Recent Development

India and the U.S. will manufacture sonobuoys for the Indian Navy to US Navy standards in accordance with ‘Make in India’ principles.
Co-production of sonobuoys:
- US-based Ultra Maritime and Indian defence PSU Bharat Dynamics Ltd (BDL) will co-produce sonobuoys.
- Co-production will happen through transfer of technology from Ultra Maritime to BDL.
- These will be produced at a facility in Visakhapatnam, which will go operational by 2027.
The Indian Navy operates 12 P-8I maritime patrol aircraft. These sonobuoys are dropped from the aircraft into the sea for anti-submarine warfare.
Significance: Help augment the Indian Navy’s capability to detect and track underwater objects, particularly the submarines and enhance undersea domain awareness.

What are Sonobuoys?

Sonobuoys are expendable, electro-mechanical acoustic sensors that relay underwater sounds emitted from ships and submarines.
They remain active for about 24 hours and help in detection, classification and prosecution of adversarial ships and submarines.
Working Mechanism:
- A naval helicopter or fixed-wing aircraft generally drops sonobuoys in a pattern. They are dropped in canisters and are deployed automatically upon impact with water.
- An inflatable system with a radio transmitter remains on the surface for communication with the ship or aircraft tracking it, while sensors descend below the surface to a pre-determined depth. It then relays acoustic information back to those monitoring them.
- A group of sonobuoys deployed in a pattern can find out the exact location of the submarine which then can be tracked by other systems.
Types of Sonobuoys:
- Active sonobuoys emit sound energy and receive the echo, based on which it transmits information back to the aircraft.
- Passive sonobuoys only listen for sounds coming from ships or submarines. They then transmit the sound back to the aircraft.

About P-8I Maritime Aircraft

P-8 Poseidon is a maritime patrol and reconnaissance aircraft developed and produced by United States' Boeing Defense.
The P-8I is a variant of the P-8 Poseidon specially designed for the Indian Navy.
Utility: P-8I is responsible for coastal patrolling, maritime surveillance, anti-submarine and anti-surface warfare, search-and-rescue, anti-piracy, and supporting operations of other arms of the military.

Mystery of the Indus Valley Script

Context: The Chief Minister of Tamil Nadu has announced a $1 million prize for deciphering the script of the Indus Valley Civilisation.

Relevance of the Topic: Prelims: Key facts about Indus Valley Civilisation and Indus Valley Script.

About Indus Valley Civilisation

In 1924, Sir John Marshall announced the discovery of the Bronze Age culture or Harappan Civilization in the valley of the Indus between c. 3300 BCE and 1300 BCE.
IVC flourished in the northwestern regions of South Asia, primarily in present-day Pakistan and northwest India. Key archaeological sites include:
- Harappa (Punjab, Pakistan): One of the first sites to be excavated, giving its name to the civilisation.
- Mohenjo-daro (Sindh, Pakistan): Known for its advanced urban planning and the Great Bath.
- Dholavira (Gujarat, India): Notable for its unique water conservation system.
- Lothal (Gujarat, India): An important port city with a dockyard.
- Rakhigarhi (Haryana, India): One of the largest Harappan sites.

Indus Valley Script:

Harappan script is largely undeciphered. Attempts have been made to compare it with the contemporary scripts of Mesopotamia and Egypt, but it is the indigenous product of the Indus region and does not indicate any connection with the scripts of western Asia.
Key Features:
- Short inscriptions: Indus inscriptions are very short – with only about five characters on average – with the longest having only 26 characters.
- Boustrophedon script: Harappan script is boustrophedon, i.e., it is written from right to left on one line and then from left to right in the next line.
- Pictographic script: The Harappan script is not alphabetical but largely pictographic. There are about 250 to 400 pictographs in the form of a picture; each letter stands for some sound, idea, or object.
There are nearly 4000 specimens of Harappan writing on stone seals and other objects.
- Unlike the Egyptians and Mesopotamians, the Harappans did not write long inscriptions.
- Most inscriptions were recorded on seals and contain only a few words. These seals may have been used by the proprietors to mark and identify their private property.

Trends of Women’s Workforce Participation in India

Context: The National Sample Survey Office’s (NSSO) most recent annual report of Periodic Labour Force Survey indicates an increase in aggregate employment rates, after a prolonged period of decline since 2011-12.

This is dominantly due to a significant rise in women’s work force participation. However, this spurt in women’s workforce participation must be interpreted with great caution.

Relevance of the Topic: Mains: Women’s workforce participation- Trends, Concerns, etc.

Analysis of Women’s Workforce Participation

Dramatic rise in women’s workforce participation:
- Men’s work participation rates have risen slightly from 71.2% in 2017-18 to 76.1% in 2023-24.
- However, for women, it rose from 22% in 2017-18, to reach 40.3% in 2023-24.

Rural females vs. Urban females:
- Women’s workforce participation increased in both rural and urban areas
- The increase was particularly sharp in rural India.

Persistence of Jobless Growth:
- NSSO includes ‘unpaid helpers in family enterprises’ in its classification of workers.
- It is in this category where most of the increase in women’s “employment” occurs.
- This indicates that the benefits of GDP growth have not translated into higher employment, hence persisting jobless growth.

Concerns with Data Classification

ILO’s definitions of work and employment make it clear that employment is ONLY that subset of work for which remuneration is received.
Since “unpaid helpers” are clearly not the primary workers who would receive remuneration, they should not really be classified as “employed” at all.
Further, NSSO classifies those engaged in Codes 92 and 93 as “not in the labour force”, so they are excluded from the employment data.
- Codes 92 and 93 include the activity classifications that cover unpaid work done within households.
- Code 92: engaged in domestic duties — essentially care work within the household.
- Code 93: domestic duties plus extended SNA activities like fetching fuelwood, fetching water, engaging in kitchen gardening and livestock and poultry rearing, etc.

Work Profile of Rural Women

By 2023-24, there was a dramatic decline in unpaid workers (Codes 92 and 93) to half of the 2017-18 level.
Significant increase in self-employment, which amounted to 95% of the increase in recorded “employment”.
- So, the decline in the proportion of unpaid women workers is almost completely explained by the increase in self-employment.
The share of both regular and casual workers barely increased at all (together they account for less than 1/10th of rural women).

Work Profile of Urban Women

8 percentage point increase in women’s recorded work participation and a 6 percentage point decrease in unpaid workers.
The increase in women’s recorded employment was split equally between regular workers and self-employed women.
There was a decline in the proportion of both casual workers and unpaid helpers in family enterprises.

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Changes in Real Wages

Real wages for women regular workers fell in both rural and urban areas
- This suggests that much of this was distress employment.
- This could well have been in domestic work and similar occupations (significant sources of employment in urban India for poor women).
However, the decline in real incomes from self-employment for women was even greater.
- This indicates a crowding of more women workers into relatively limited types of activities.

Gender Gap in Earnings

The gender gap in earnings grew significantly over this period, particularly in rural areas.
The gap is shockingly high for self-employed workers.
- Women receive only around 1/3rd of the incomes from self-employment that their male counterparts earn.

Overall, this is hardly a picture of dynamism in labour markets that is leading to more employment of women. It is necessary to move beyond that fairy tale to address the reality of women’s work in India.