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Exclusive for Subscribers Daily: Topics like Rupee-Dollar Exchange rate, Citizenship Act, 1955 for the UPSC Exam? Why are topics like Glacial lake outburst floods (GLOFs) and asteroids, Ethanol Blending important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for February 04, 2025 |
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Critical Topics and Their Significance for the UPSC CSE Examination on February 04 20205
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Amid global meltdown, rupee breaches 87 against the dollar
For Preliminary Examination: Current events of national and international importance
For Mains Examination: GS III - Economy
Context:
The Indian rupee slumped almost 0.6% or 49 paise to breach the 87 mark against the U.S. dollar on Monday, amid a meltdown for most emerging market currencies and stock markets across Asia and Europe on the first day of trading after President Donald Trump imposed higher tariffs on Canada, Mexico and China

Read about:
Rupe exchange rate
What is rupee depreciation?
Key takeaways:
The rupee’s movement will depend on global trade negotiations, U.S. Federal Reserve policies, and India’s domestic economic indicators like inflation and GDP growth. The RBI will likely continue interventions to prevent excessive depreciation while balancing economic growth
As of February 4, 2025, the Indian rupee (INR) is trading at approximately 87.11 per U.S. dollar (USD).
This reflects a slight recovery from the previous day's record low of 87.28, which was influenced by U.S. President Donald Trump's imposition of tariffs on imports from Mexico, Canada, and China.
The rupee's depreciation has been attributed to concerns over a potential global trade war and the resulting market volatility. In response, the Reserve Bank of India (RBI) has been actively participating in the foreign exchange market to manage the currency's volatility.
For the most current exchange rates, it's advisable to consult reliable financial platforms or currency converters, as rates can fluctuate throughout the day
Implications of a Weak Rupee
- Imports Become Costlier: India, being an import-dependent country (especially for crude oil and electronics), will see higher prices, leading to inflationary pressures.
- Exports Become Competitive: A weaker rupee makes Indian exports (like IT services and textiles) cheaper and more attractive globally.
- Foreign Investment: If foreign investors see a declining rupee as risky, they may withdraw investments, further impacting market sentiment
Rupee depreciation refers to a decline in the value of the Indian rupee (INR) against a foreign currency, especially the U.S. dollar (USD). It means that more rupees are required to buy one unit of foreign currency, making the rupee weaker in international markets.
For example, if the exchange rate changes from ₹75 per USD to ₹87 per USD, it means the rupee has depreciated because you now need more rupees to buy the same 1 dollar
Causes of Rupee Depreciation
Trade and Current Account Deficit
- If imports exceed exports, India has to pay more foreign currency (like USD) than it receives from exports.
- This increases the demand for USD, leading to rupee depreciation.
Foreign Capital Outflows
- Foreign investors withdraw their money from Indian markets during economic uncertainty.
- When they sell Indian assets (stocks, bonds, etc.), they convert INR to USD, increasing the demand for dollars and weakening the rupee.
High Inflation in India
- If inflation in India is higher than in other countries, the purchasing power of the rupee declines.
- This reduces confidence in the rupee, leading to depreciation.
Interest Rate Differences
- If the U.S. Federal Reserve increases interest rates, global investors move their money to the U.S. for higher returns.
- This leads to capital outflow from India, increasing the demand for USD and depreciating the rupee.
Global Economic Factors
- Geopolitical tensions, crude oil prices, and trade wars can impact currency value.
- Since India imports most of its oil, a rise in crude oil prices increases demand for USD, causing rupee depreciation.
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Answer (B)
India’s foreign exchange reserves are maintained by the Reserve Bank of India (RBI) and include the following key components:
Why Other Options Are Incorrect?
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Legal Principles of Citizenship
Citizenship signifies an individual's full and equal membership in a nation. Political theorist Hannah Arendt described it as the "right to have rights." Globally, countries adopt different legal frameworks to determine citizenship. Two key legal principles govern citizenship acquisition:
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Jus Soli (Right of Soil): This principle grants citizenship based on a person's birthplace, regardless of the parents' nationality. Several North and Latin American nations, including Canada, Mexico, Brazil, and Argentina, follow this rule, allowing children born within their borders to become citizens automatically.
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Jus Sanguinis (Right of Blood): Under this system, an individual’s citizenship is inherited from their parents rather than determined by place of birth. Many countries in Africa, Europe, and Asia, such as Egypt, South Africa, Germany, and India, adopt this approach to confer citizenship
Current Debate on U.S. Citizenship Policy
- Traditionally, the United States has followed the jus soli principle. The 14th Amendment of the U.S. Constitution (1868) establishes that "all persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States."
- This principle was reaffirmed by the U.S. Supreme Court in 1898, confirming that all children born on American soil qualify for citizenship, regardless of their parents' nationality.
- However, a recent executive order issued by President Trump, titled "Protecting the Meaning and Value of American Citizenship," seeks to limit citizenship only to children whose parents are either U.S. citizens or Green Card holders.
- This policy was scheduled for implementation on February 19 but has been temporarily blocked by a federal court in Washington, which deemed it "blatantly unconstitutional."
Citizenship Laws in India
In India, citizenship is regulated by the Citizenship Act, 1955. Up until June 1987, India followed the jus soli principle, granting automatic citizenship to anyone born within its borders. However, subsequent amendments shifted towards the jus sanguinis system:
- Between July 1987 and December 2004, at least one parent had to be an Indian citizen for a child to qualify for citizenship.
- Post-December 2004, the criteria became stricter—both parents must be Indian citizens, or one must be a citizen while the other is not an illegal immigrant. This change aimed to prevent illegal immigration from Bangladesh from influencing citizenship status.
The Citizenship Amendment Act, 2019 (CAA) further modified the citizenship framework. It offers expedited citizenship to Hindus, Sikhs, Christians, Jains, Buddhists, and Parsis from Pakistan, Afghanistan, and Bangladesh, provided they entered India before December 31, 2014. However, this law excludes Muslims, leading to accusations that it violates India’s secular principles.
While critics argue that the CAA is unconstitutional, the government maintains that it is a humanitarian measure designed to assist persecuted religious minorities from neighboring countries. The Supreme Court is set to decide on its constitutional validity. Meanwhile, authorities must ensure that the law’s implementation does not cause undue hardships for Indian Muslim citizens
Follow Up Question
1.What is the position of the Right to Property in India? (UPSC 2021)
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Answer (b)
Initially, the Right to Property was a Fundamental Right under Article 31 of the Indian Constitution. However, through the 44th Constitutional Amendment Act, 1978, it was removed from the list of Fundamental Rights and reclassified as a legal right under Article 300A. Current Status of Right to Property in India:
Why Other Options Are Incorrect?
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- A research team discovered that glaciers spanning 309.85 sq. km retreated at a rate of 16.94 sq. km between 1988 and 2020. This retreat has led to the exposure of bedrock and the formation of glacial lakes, raising concerns about glacial lake outburst floods (GLOFs).
- Glacial retreat is a key indicator of global climate change and occurs when glaciers melt faster than new ice and snow can accumulate. The eastern Himalayas have already experienced a significant GLOF event—the 2023 Sikkim disaster, which resulted in at least 55 fatalities and destroyed a 1,200-megawatt hydropower project on the Teesta River.
- The study was conducted by Vimha Ritse, Amenuo Susan Kulnu, and Latonglila Jamir from Nagaland University’s Department of Environmental Science, along with Nabajit Hazarika from Cotton University’s Department of Environmental Biology and Wildlife Sciences. Their findings were published in the Journal of Earth System Science.
- To analyze glacial retreat, the researchers utilized remote sensing and geographic information systems (GIS) to map glacier boundaries, including debris-covered regions. Their study covered areas from Tawang to Lohit districts of Arunachal Pradesh, including West Kameng, Kurung Kumey, Upper Siang, and Upper Dibang Valley districts. Additionally, they referenced the Randolph Glacier Inventory of Global Land Ice Measurements from Space.
- The study revealed a decline in the number of glaciers from 756 to 646 over the 32-year period. The total glacier-covered area shrank from 585.23 sq. km to 309.85 sq. km, indicating a 47% loss in glacier coverage.
- Most of the glaciers examined were situated at elevations between 4,500 and 4,800 meters above sea level
A Glacial Lake Outburst Flood (GLOF) is a sudden and often catastrophic release of water from a glacial lake. These lakes are formed when melting glaciers accumulate water in depressions blocked by natural barriers, usually consisting of ice or loose rock debris (moraines). However, when these barriers weaken or fail due to natural or climatic factors, a massive flood can occur, causing widespread destruction downstream.
Causes of GLOFs
- One of the primary reasons for GLOFs is the retreat of glaciers due to rising global temperatures. As glaciers melt, they leave behind large amounts of water trapped in glacial lakes, increasing the risk of outbursts.
- Additionally, sudden ice or rock avalanches into the lake can generate a massive displacement of water, breaching the dam and triggering floods. Natural disasters such as landslides and earthquakes can also destabilize the lake’s barriers, leading to an abrupt release of water.
- Moreover, heavy rainfall and excessive snowmelt can further weaken the moraine dam, increasing the likelihood of a breach. In some cases, the constant undermining of the moraine barrier due to seepage or internal erosion causes gradual weakening, eventually resulting in a sudden failure.
Impact of GLOFs
- The impact of a GLOF can be devastating. The sudden release of a vast amount of water leads to flash floods and landslides, which can wash away entire villages, roads, and bridges in downstream areas.
- Infrastructure such as hydropower plants, irrigation systems, and transportation networks is particularly vulnerable, as seen in the 2023 Sikkim GLOF disaster, where the flooding of the Teesta River caused significant destruction, including the collapse of a major hydropower project.
- Apart from infrastructure damage, GLOFs pose a serious threat to human and animal life, often leaving communities stranded without essential resources. Additionally, the environmental consequences are severe, as floods can erode fertile soil, disrupt ecosystems, and alter river courses, leading to long-term ecological instability.
Mitigation Measures
- Given the rising threat of GLOFs due to climate change, effective monitoring and mitigation strategies are essential. Satellite-based remote sensing and early warning systems play a crucial role in identifying potential threats by tracking changes in glacial lakes and their surrounding landscapes.
- To prevent sudden outbursts, scientists and engineers have explored methods such as artificial drainage of glacial lakes and reinforcing moraine dams to reduce water levels in a controlled manner.
- In addition to technological interventions, community awareness and preparedness programs are vital to ensure that people living in vulnerable regions understand the risks and know how to respond in emergencies. Governments also need to focus on sustainable development planning, ensuring that critical infrastructure is not built in high-risk areas.
- As climate change accelerates, the frequency and intensity of GLOFs are expected to rise, making it essential for policymakers, scientists, and local communities to collaborate on effective risk management strategies.
- Addressing this growing threat requires a combination of scientific innovation, robust policy frameworks, and proactive community engagement to minimize the impact of these destructive events
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Answer (C)
A Glacial Lake Outburst Flood (GLOF) occurs when a glacial lake suddenly releases a large volume of water due to the failure of a natural dam made of ice or moraine (rock debris). This results in catastrophic flooding downstream. Let’s analyze the given statements:
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- Asteroids are primarily made up of metals like nickel and iron, as well as silicate rock and carbon. Their composition gives scientists insight into the early conditions of the solar system
- Most asteroids are found in the Asteroid Belt, which lies between Mars and Jupiter. However, asteroids can also be found in orbits beyond the asteroid belt, some of which cross the Earth's orbit and are called Near-Earth Asteroids (NEAs)
- Asteroids come in various sizes. The largest asteroid in the asteroid belt is Ceres, which is also classified as a dwarf planet. Most asteroids, however, are small—typically a few hundred meters in diameter
- Asteroids orbit the Sun, much like planets, but their orbits are often more eccentric or elongated. Their speed can vary, with some traveling up to 30 kilometers per second
- While asteroids generally pose no immediate threat, large asteroids have the potential to cause catastrophic impacts. The extinction event that led to the demise of the dinosaurs around 65 million years ago is thought to have been caused by the impact of a massive asteroid
- Several space missions have been launched to explore asteroids. Notable missions include NASA's OSIRIS-REx mission, which visited asteroid Bennu to collect samples, and Japan's Hayabusa2, which brought back samples from Ryugu
Types of Asteroids:
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C-type (Carbonaceous)
- The most common type, C-type asteroids are rich in carbon and are darker in appearance. They are often found in the outer regions of the asteroid belt.
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S-type (Silicaceous)
- Composed primarily of silicate minerals (like olivine and pyroxene), S-type asteroids are brighter and more metallic. They are often found in the inner asteroid belt.
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M-type (Metallic)
- These asteroids are composed mainly of metal, such as nickel and iron, and are relatively rare compared to the other types
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Answer (C)
The THEMIS mission (Time History of Events and Macroscale Interactions during Substorms) is a NASA space mission launched to study the auroras (the colorful display of high-latitude skies). It focuses on understanding the magnetic storms in Earth's magnetosphere and how these storms affect the auroras in high-latitude regions. The data collected by the THEMIS satellites helps scientists understand the nature of these auroral displays, which are caused by solar wind interacting with the Earth's magnetic field. This mission has helped uncover important insights into space weather and how it influences the Earth's magnetosphere, which is crucial for communication and navigation systems |
Union Minister Nitin Gadkari announced that India is set to meet its goal of blending 20% ethanol in petrol within the next two months, which is at least one year ahead of the original timeline. This achievement will require the production of approximately 1,100 crore litres of ethanol annually.
Sources of Ethanol Production:
- The required 1,100 crore litres of ethanol will be sourced from sugar, high-grade molasses, FCI rice, broken rice, and maize. India's ethanol production capacity has increased to 1,600 crore litres, thanks to various government incentives and a stable, profitable market.
- According to Deepak Ballani, director general of the Indian Sugar and Bio-energy Manufacturers Association, sugar is expected to contribute around 400 crore litres of ethanol this year.
- India had about 80 lakh tonnes of sugar stock in October 2024, and next year's projected sugar production is expected to be about 315 lakh tonnes, with 40 lakh tonnes earmarked for ethanol. Ethanol for non-fuel purposes will be derived from lower-grade molasses known as C Heavy, which is not used in sugar production.
- Recently, the government reduced the price of FCI rice for distilleries from ₹28 to ₹22.5 per kg. The government estimates that 110 crore litres of ethanol will be produced from FCI rice this year, with nearly 400 crore litres of ethanol coming from maize.
- Notably, India had barely produced ethanol from maize until 2020. To meet growing demand, new grain-based distilleries are being established, and some sugar distilleries have been adapted to use dual-feed, allowing them to process maize during the off-season.
Maize’s Role in Ethanol Production:
- India's maize output primarily meets the demands of the poultry industry, livestock feed, starch production, and some human consumption, with only about 10% of it used for food.
- Following the government's restrictions on the use of sugar and high-quality molasses for ethanol production, maize imports surged beginning in April 2024.
- Between April and June 2024, about ₹100 crore worth of maize was imported, with the total maize imports for the 2023-24 period reaching approximately $33 million. According to Ministry of Commerce data, about $188 million worth of maize was imported between April and November 2024.
- The growing demand for ethanol has encouraged farmers across India to cultivate maize. Major maize-producing states include Karnataka, Madhya Pradesh, Maharashtra, Andhra Pradesh, Rajasthan, Bihar, and Uttar Pradesh.
- For the 2024-25 ethanol year, maize production is expected to reach 42 million tonnes, with 9 million tonnes allocated for ethanol production, which will yield between 350 and 400 crore litres of ethanol.
- Thanks to promising prospects for the kharif season, there is no expectation that maize will need to be imported in the coming year.
- Since 2020-21, when ethanol production was predominantly based on sugar, maize production has risen by almost 6 million tonnes over three years, increasing its potential use for ethanol production.
- Currently, maize is being cultivated on 10% more land with improved yields. As the supply of maize for ethanol becomes more profitable, some farmers are shifting from traditional maize uses, though byproducts like Distiller’s Dried Grains with Solubles (DDGS) can still be used for poultry feed.
- While the shift to ethanol and increased focus on maize may have long-term sustainability implications, particularly for food grain production, the benefits are clear.
- For instance, 100 crore litres of ethanol could save India approximately ₹6,000 crore on oil imports, with that money flowing back into the domestic economy, including to farmers. India's annual oil import bill stands at around ₹10.5 lakh crore
Ethanol blending refers to the process of mixing ethanol (a renewable alcohol-based fuel) with gasoline (petrol) to create an environmentally friendlier fuel option. This practice aims to reduce dependency on fossil fuels, decrease greenhouse gas emissions, and enhance the sustainability of the transportation sector.
The concept of ethanol blending is often used to improve fuel quality and reduce carbon emissions, as ethanol is a cleaner alternative to pure gasoline.
Ethanol Blending in India:
India has been actively pursuing ethanol blending as part of its efforts to reduce air pollution, improve energy security, and cut down on the import of crude oil. The Ethanol Blending Programme (EBP) was introduced to encourage the mixing of ethanol with petrol, and the government has set targets to progressively increase ethanol blending in petrol over the years.
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20% Ethanol Blending by 2025: India's target is to achieve 20% ethanol blending with petrol by 2025, ahead of many other countries. This means that for every litre of petrol, 20% will be replaced by ethanol.
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Current Status: As of 2024, India is aiming to meet this 20% blending target ahead of schedule, potentially in the next two months, as confirmed by Union Minister Nitin Gadkari. This would require the production of about 1,100 crore litres of ethanol annually.
Why Ethanol Blending?
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Environmental Benefits:
- Reduction in Greenhouse Gas Emissions: Ethanol is a cleaner-burning fuel compared to petrol, and blending it reduces the emissions of carbon monoxide, hydrocarbons, and nitrogen oxides, which contribute to air pollution.
- Mitigating Climate Change: By reducing reliance on fossil fuels, ethanol blending helps in lowering carbon dioxide (CO2) emissions, contributing to India's climate action goals.
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Energy Security:
- Decreased Import Dependency: India is one of the largest importers of crude oil. Ethanol, largely produced from domestic agricultural resources (like sugar, maize, and rice), can reduce India's reliance on imported fossil fuels, enhancing its energy security.
- Boosting Rural Economy: The demand for ethanol creates a market for agricultural products such as sugarcane, maize, and rice, providing a boost to the rural economy.
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Economic Impact:
- Job Creation: The ethanol industry generates employment in agricultural sectors, distilleries, and transportation. It also encourages innovation in the development of alternative fuels.
- Saves Foreign Exchange: The blending programme is expected to save India billions in oil imports. For example, producing ethanol domestically helps in substituting imports with locally sourced renewable fuel.
Sources of Ethanol:
India’s ethanol is primarily derived from various agricultural byproducts. Some of the key sources include:
- Sugarcane: India is one of the world’s largest producers of sugar, and sugarcane is a major source for ethanol production.
- Molasses: A byproduct of sugar production, molasses is also used to produce ethanol.
- Rice and Broken Rice: Surplus rice stocks and broken rice are used in ethanol distillation.
- Maize: Maize, which was hardly used for ethanol production until 2020, has become an increasingly important source, especially in recent years due to government incentives
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Answer (D)
According to India's National Policy on Biofuels, the following raw materials are identified for the production of biofuels:
All of the listed raw materials can be used for biofuel production under the policy, which encourages the utilization of various agricultural products and waste materials to produce biofuels |
| Subject | Topic | Description |
| Polity | Fundamental Duties | Fundamental Duties |
| Environment & Ecology | Biodiversity in India | Biodiversity |
| History | Modern Indian History | Constitutional Development in India |
| History | Modern Indian History | Peasants, Tribal and other movements |
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