Daily Prelims Notes 3 February 2025

Daily Prelims Notes

3 February 2025

Table Of Contents

1. Trump slaps 25% tariff on imports from Canada, Mexico; additional 10% duty for Chinese goods
2. The various challenges associated with AI-driven genetic testing
3. Study finds a way to predict when cracks would develop in paint, clay, milk and blood
4. A malfunctioning valve has stalled ISRO’s orbit raising operations for the NVS-02 satellite
5. Green cardamom’s new relatives include two species from Kerala
6. Revised Tariff Structure to Improve India’s Global Trade Image
7. Key Takeaways from the Economic Survey 2024-25

1. Trump slaps 25% tariff on imports from Canada, Mexico; additional 10% duty for Chinese goods

Sub: Eco

Sec: External sector

Context:

• U.S. President Donald Trump announced new tariffs on key trading partners Canada, Mexico, and China.
• The rationale behind the move was to address what Trump described as a “major threat” posed by illegal immigration and the flow of drugs, particularly fentanyl, into the U.S.
• President Trump invoked the International Emergency Economic Powers Act to justify the imposition of tariffs, declaring illegal immigration and drug flows a national emergency.

Tariffs Imposed:

• Effective immediately, Canadian and Mexican exports to the U.S. will face a 25% tariff. However, energy resources from Canada will be subjected to a lower tariff rate of 10%.
• Goods from China, which already face various tariffs, will see an additional 10% tariff.
• Additionally, Trump’s order suspends exemptions that previously allowed low-value imports from these three countries to enter the U.S. duty-free.
• The tariffs will likely lead to increased prices for American consumers and is expected to slowdown US economy.

Impact on Supply Chains:

• Automobile and Electronics: U.S. imports from Canada and Mexico were valued at nearly $900 billion in 2023. Analysts predict that industries like automobiles and electronics, which rely on integrated supply chains between the three North American countries, will be hit especially hard.
• Agriculture: Canada and Mexico also account for a large portion of U.S. agricultural imports, meaning items like avocados and tomatoes could see higher prices due to the tariffs. Mexico is a key supplier of vegetables, fruit, and nuts to the U.S.

Impact on Canada and Mexico:

• Canada and Mexico rely heavily on U.S. trade, with exports to the U.S. accounting for over 70% of Canada’s exports and 84% of Mexico’s.
• Economists warn that the tariffs could trigger recessions in Canada and Mexico.
• These tariffs may also conflict with the U.S.-Mexico-Canada Agreement (USMCA), a trade deal signed by Trump during his first term.

About USMCA:

• The United States-Mexico-Canada Agreement (USMCA) is a trade agreement between the United States, Mexico, and Canada that replaced the North American Free Trade Agreement (NAFTA).
• The USMCA entered into force on July 1, 2020.
• USMCA is intended to last 16 years and will be reviewed every 6 years.

Key Features of USMCA:

• Strengthens rules of origin for automobiles (75% content from USMCA nations).
• Enhances labour and environmental standards.
• Expands access for US dairy products to Canadian markets.
• Updates digital trade rules, including data protection and e-commerce.
• Establishes mechanisms for resolving disputes among member nations.

2. The various challenges associated with AI-driven genetic testing

Sub: Sci

Sec : Awareness in IT

Why in NEWS

• AI has facilitated genetic information processing at higher speed, but this rapid analysis amplifies the risk of data security breaches and leaks.

The Human Genome Project (HGP)

• The Human Genome Project, a 13-year public initiative starting in 1990, aimed to decipher the complete DNA sequence of the human genome
• Identify all human genes, estimated 20,000-25,000 genes within the genome.
• HGP objective was to create technologies for storing, organizing, and analyzing the vast amount of genomic information. Address ethical, legal, and social implications (ELSI).
• The human genome contains approximately 3 billion base pairs. Genes are not evenly distributed across the genome.
• A significant portion of the genome consists of repetitive DNA sequences with unknown functions.
• Over 9% of the DNA sequence is identical in all humans, with the remaining 0.1% accounting for individual differences.

AI in GENOMICS

• AI significantly accelerates genetic information processing, leading to analysis of much larger datasets.
• John Hopkins researchers used machine learning to analyse junk DNA (non- coding DNA) revealing associations with tumors and opening new avenues for cancer research.
• AI helps uncover complex patterns and insights within vast genetic datasets that would be impossible to detect manually.
• AI algorithms predict genetic disease-causing traits, interpret gene-environment interactions, and offer personalized health recommendations.
• AI models can be continuously updated with the latest scientific research, ensuring analyses are based on current knowledge.

Challenges with AI

• Genetic tests cannot reliably predict complex outcomes like school success or job prospects. Genetics is only one factor (around 30%).
• Diagnoses can change, and some results are inconclusive (variations of unknown significance), sometimes requiring further testing or family history.
• Genetic testing for Alzheimer’s identifies risk genes, but doesn’t guarantee the disease. People can develop Alzheimer’s without having the associated genes.
• Genetic testing raises ethical questions, especially regarding unexpected findings and predictions of mental health conditions.
• The goal of genetic testing should be to provide insights for proactive health measures, not to make definitive diagnoses.
• Environment, diet, and education are as important as genetics in shaping a child’s development.

Measures to reduce the risk of genetic data breaches and protect the privacy of individuals.

• Implement strong encryption methods both in transit and at rest.
• Limit access to genetic data to only authorized personnel. Implement multi-factor authentication for all users with access to sensitive data.
• Store genetic data in secure, controlled environments, such as dedicated servers or cloud platforms with robust security measures.
• Conduct regular security audits to identify vulnerabilities in systems and processes.
• Whenever possible, anonymize or de-identify genetic data used for AI training and analysis. This reduces the risk of linking data back to individuals.
• Secure software development practices to minimize vulnerabilities in AI algorithms and software applications.
• Train all employees who handle genetic data on security best practices, data privacy regulations, and the importance of protecting sensitive data.
• Be transparent with users about how their genetic data is being used and obtain their informed consent before collecting or analyzing their data.

3. Study finds a way to predict when cracks would develop in paint, clay, milk and blood

Sub : Sci

Sec : Miscellaneous

Why in NEWS

• A new study have shown clay’s drying process reveals a fascinating shift in elasticity, from liquid to pliable solid to brittle material.

Key highlights and context

• Crack Prevention Breakthrough: Researchers at the Raman Research Institute (RRI) in Bengaluru have discovered a method to delay cracking in paint coatings.
• Wider Applications: This technique has potential uses beyond paint, including disease diagnosis and food spoilage detection.
• Ubiquity of Cracks: Cracks are common in various settings, from old vases and buildings to lava flows, dry ground, and reptile skin.
• Crack Complexity: While seemingly simple, crack formation is a complex phenomenon.
• Crack Intersection Angles: Previous research showed cracks typically intersect at 90 degrees, except in drying paint where the angle is 120 degrees.

Elasticity

• Elasticity, ability of a deformed material body to return to its original shape and size when the forces causing the deformation are removed.

Elasticity and Cracking

• The changing elasticity of clay as it dries, transitioning from liquid to soft solid to brittle sheet.
• They discovered a relationship between clay’s elasticity and the speed at which cracks appear.
• They developed a method to predict crack formation based on initial sample thickness and elasticity.
• By manipulating elasticity, they could delay the onset of cracks. They altered elasticity by adding different substances to the clay.
• Common salt accelerated crack formation, while tetrasodium pyrophosphate (TSPP) significantly delayed it. TSPP, a food additive found in various products (e.g., chicken nuggets, marshmallows, toothpaste), proved highly effective in delaying cracks in clay.

Application of delayed cracking

• The research can be immediately applied to create crack-resistant paint coatings by adding clay with specific elasticity during manufacturing.
• The findings have potential applications beyond paint, wherever cracks occur. Milk and blood, like clay, are colloids (mixtures of particles in a liquid) and exhibit similar drying behavior.
• Crack patterns can reveal structural changes in materials like milk (protein networks) and blood (clot formation).
• The method could be used to identify adulterants in milk by analysing differences in drying patterns between pure and adulterated samples.
• Changes in red blood cell characteristics in diseases like anemia could alter blood drying patterns, offering a potential diagnostic tool.

4. A malfunctioning valve has stalled ISRO’s orbit raising operations for the NVS-02 satellite

Sub : Sci

Sec : Space technology

Why in NEWS

• ISRO’s NVS-02 satellite’s orbit-raising operations have been disrupted by a valve malfunction, following its January 29th launch as part of ISRO’s 100th launch from Sriharikota.

Key update and context

• ISRO’s NVS-02 satellite’s orbit-raising operations stalled due to a valve malfunction preventing oxidizer flow to thrusters.
• The satellite is currently in its intended elliptical orbit.
• The satellite was successfully injected into the Geosynchronous Transfer Orbit.
• Solar panels deployed, power generation is nominal, and communication with the ground station is established. NVS-02 has navigation payloads in L1, L5, and S bands, plus a ranging payload in C-band.
• It is intended to replace IRNSS-1E at 111.75ºE. NVS-02 uses a combination of indigenous and procured atomic clocks.

NVS-02 ISRO SATELLITE

• NVS-02 is a navigation satellite designed to enhance India’s Navigation with Indian Constellation (NavIC) system. It provides accurate Position, Velocity, and Timing (PVT) services.

Indian Regional Navigation Satellite System (IRNSS): NavIC

• NavIC is completely designed, developed, and operated by India, providing independence from foreign navigation systems like GPS.
• Regional Coverage: It primarily covers India and a region extending 1,500 km around it, with plans for further expansion.
• Constellation: NavIC consists of a constellation of 7 satellites: 3 in geostationary orbit and 4 in inclined geosynchronous orbit, ensuring continuous coverage.
• Accuracy: NavIC aims to provide position accuracy better than 20 meters and timing accuracy better than 50 nanoseconds.
• It will provide two types of services, namely, Standard Positioning Service (SPS) which is provided to all the users and Restricted Service (RS), which is an encrypted service provided only to the authorised users.

Some applications of IRNSS are:

• Terrestrial, Aerial and Marine Navigation
• Disaster Management
• Vehicle tracking and fleet management
• Integration with mobile phones
• Precise Timing
• Mapping and Geodetic data capture
• Terrestrial navigation aid for hikers and travellers
• NavIC SPS signals are designed to be interoperable with other global navigation satellite systems (GNSS) like GPS (USA), GLONASS (Russia), Galileo (European Union), and BeiDou (China).

Geostationary V/S Geosynchronous orbit

• Both have the same orbital period: one day (approximately 23 hours, 56 minutes, and 4 seconds). This means the satellite returns to the same position above Earth every day.
• Geostationary have zero inclination. The satellite orbits directly above the equator.
• Geosynchronous can have any inclination. The satellite’s orbit may be tilted relative to the equator.
• Geostationary appears stationary to an observer on Earth. It stays fixed above a specific point on the equator. Geosynchronous appears to move in a figure-8 pattern over the course of a day.
• A geostationary orbit is a special case of a geosynchronous orbit where the inclination is zero. So, all geostationary satellites are geosynchronous, but not all geosynchronous satellites are geostationary.
• Major uses of Geostationary satellites are Communication, Disaster Management, Climate Control, Weather Forecasting Geosynchronous Satellites are mainly used for communication and DTH.

5. Green cardamom’s new relatives include two species from Kerala

Sub: Env  

Sec : Biodiversity

Why in NEWS

• Two new species of green cardamom, Elettaria facifera and Elettaria tulipifera, have been discovered in Kerala’s Western Ghats, expanding the known diversity of this important spice.
• These new relatives of the commonly used green cardamom highlight the rich biodiversity of the region.

Key highlights and context

• Cardamom, known as the “Queen of Spices,” was previously thought to be the sole species in the Elettaria
• Recent research has revealed six additional species closely related to Elettaria cardamom (green cardamom). Four of these species were previously classified under the Alpinia genus.
• Two are newly identified species discovered and described in the Western Ghats of Kerala, India.

New discoveries of Green Cardamom

• The Elettaria genus now contains seven species, including the well-known E. cardamom.
• Four species previously classified as Alpinia ( ensal, E. floribunda, E. involucrata, and E. rufescens) have been reclassified into Elettaria.
• Green cardamom (E. cardamom) is the third most valuable spice globally (after saffron and vanilla).
• facifera is distinguished by its sessile leaves, separate flowering shoots, and white labellum with purple-red markings. The Mannan tribe call it “Vai noki elam.”
• tulipifera has tulip-shaped inflorescence and large, bright red bracts.

Cardamom

• Cardamom, a highly prized spice, is primarily produced in Guatemala, which leads global production at around 35,000 metric tons Following Guatemala, India is the second largest producer. Other significant cultivators of cardamom include Tanzania, Sri Lanka, El Salvador, Vietnam, Laos, Cambodia, and Papua New Guinea.
• Cardamom cultivation in India is concentrated in the Western Ghats, specifically within the states of Kerala, Karnataka, and Tamil Nadu. Kerala leads production, accounting for 60% of the total output, followed by Karnataka at 30% and Tamil Nadu at 10%.
• Idukki district is the primary region for cardamom farming.
• It requires evenly distributed rainfall of 1500-4000 mm per year. A temperature range of 10-35°C is ideal for cardamom.
• Cardamom grows well in forest loamy soils. Soil pH: 4.2 to 6.8.

Spices board of India

The Spices Board was formed in 1987.

• Purpose: It is the Indian government’s regulatory and export promotion agency for spices.
• Developing and promoting the spice industry. It also regulates the exports of spices. Setting quality standards for exported spices
• Supporting research and development in spice cultivation.
• The Spices Board deals with 52 spices listed in the Spices Board Act of 1986.
• Headquarters: The board is based in Kochi, Kerala, India.
• It is headed by a Chairman, who holds a rank equivalent to Joint Secretary to the Government of India.
• The Spices Board has its own brand called Flavourit under which it sells spices.

6. Revised Tariff Structure to Improve India’s Global Trade Image

Sub : Eco

Sec : External sector

Why in News?

• The Union Budget 2024-25, announced on February 1, 2025, has introduced a revised tariff structure aimed at rationalizing import duties and correcting India’s global trade optics.

Context:

• The Indian government has reduced peak customs duty rates, eliminating high tariff slabs of 150%, 125%, and 100%.
• The move is expected to address global criticism, particularly from countries like the U.S., where President Trump labeled India as a “tariff abuser”.
• The changes streamline the duty structure from 15 slabs to 8 slabs, signalling a lower tariff regime.

Key Highlights of the Revised Tariff Structure

Reduction in Peak Tariff Rates

• The highest custom duty rate has now been brought down to 70%, eliminating extreme slabs of 150%, 125%, and 100%.
• The average tariff rate has been lowered to 10.6%.

Tariffs on U.S. Exports to India

• Top 30 U.S. exports to India (including crude petroleum, coking coal, airplanes, and liquefied natural gas) face minimal tariffs in the range of 0% to 7.5%.
• The move is designed to improve trade relations with the U.S. and counter criticism of India’s high tariff barriers.

Trade Optics and Global Perception

• The government aims to counter the perception that India is a high-tariff country.
• Indian officials have prepared a fact sheet on India’s tariffs on key U.S. products, which may be shared through diplomatic channels.

Justification by Government

Correcting “Bad Optics”

• The government believes the old high tariff rates created a negative perception globally and rationalization will send a positive signal to global markets.

Encouraging Trade & Investment

• Lower tariffs are expected to boost foreign investment and enhance trade partnerships and the tariff cuts are part of an “autonomous review” of India’s customs duty structure.

Alignment with Global Trade Practices

• The rationalization aligns India with global tariff standards, making the country a more attractive trade destination.

7. Key Takeaways from the Economic Survey 2024-25

Sub : Eco

Sec : National Economy /Income

Why in News?

• Finance Minister Nirmala Sitharaman tabled the Economic Survey 2024-25 in Parliament.
• It provides an overview of the Indian economy’s performance in FY24 and projections for FY25.
• Prepared by the Department of Economic Affairs under the guidance of Chief Economic Advisor (CEA) V. Anantha Nageswaran.

Key Highlights & Context

Global Economic Concerns

• Secular Stagnation: The Survey warns that global economic growth is slowing, with trade and investment stagnating.
• China’s Dominance: China accounts for one-third of global manufacturing output, surpassing the next 10 largest economies combined.
• Shift in Global Trade: Global trade has moved from globalization to protectionism, causing supply chain disruptions. The trend of outsourcing to China is being reconsidered due to economic fragmentation.

State of the Indian Economy

• Real GDP Growth Projections:
  • FY25: 6.4%
  • FY26 (Forecast): 6.3% – 6.8%
• Consumption Growth:
  • Private Final Consumption Expenditure (PFCE) projected to rise from 60.3% (FY24) to 61.8% (FY25)—highest since FY03.
• GVA Growth:
  • Gross Value Added (GVA) is above pre-pandemic trends, reflecting economic resilience.
• Inflation Trends:
  • Core Inflation (excluding food & fuel) is moderating.
  • Food Inflation surged from 7.5% (FY24) to 8.4% (FY25) due to supply chain disruptions & weather conditions.
• Employment scenarios:
  • Labour market metrics (Unemployment Rate, Labour Force Participation, Worker-to-Population Ratio) have improved, as per the PLFS 2023-24 report.

Key Recommendations 

• Deregulation for Economic Growth:
  • Simplifying regulations to boost employment, income, & consumption.
  • Focus on reducing business costs to encourage hiring & entrepreneurship.
• Industry Reforms:
  • Business Reform Action Plan (BRAP) aims to enhance industrial growth in emerging states.
• Need for Infrastructure & Investment:
  • India lacks capacity to produce critical goods at scale & quality, affecting economic expansion.