{"id":2352,"date":"2025-10-16T09:36:29","date_gmt":"2025-10-16T09:36:29","guid":{"rendered":"https:\/\/arkreflectionsias.com\/studentportal\/?p=2352"},"modified":"2025-10-21T09:07:20","modified_gmt":"2025-10-21T09:07:20","slug":"current-affairs-16th-october-2025","status":"publish","type":"post","link":"https:\/\/arkreflectionsias.com\/studentportal\/2025\/10\/16\/current-affairs-16th-october-2025\/","title":{"rendered":"Current Affairs 16th October 2025"},"content":{"rendered":"<h1><strong><u>1. Critical Minerals for India\u2019s Clean Energy Ambitions<\/u><\/strong><\/h1>\n<p><strong>GS Paper III \u2013 Indian Economy &amp; Environment: Infrastructure (Energy), Resource Mobilization, Growth.<\/strong><\/p>\n<p><strong>CONTEXT:<\/strong>\u00a0India&#8217;s ambitious clean energy transition, targeting 500 GW of non-fossil capacity by 2030, is heavily dependent on a stable supply of\u00a0<strong>Critical Minerals<\/strong>, making their sourcing the pivotal &#8216;critical factor&#8217; for success.<\/p>\n<p><strong>Key Data Points &amp; Pre-Pointers:<\/strong><\/p>\n<ul>\n<li><strong>Import Dependency:<\/strong>\u00a0India is\u00a0<strong>100% dependent<\/strong>\u00a0on imports for Lithium and Cobalt, and about\u00a0<strong>93%<\/strong>\u00a0for Copper.<\/li>\n<li><strong>China&#8217;s Dominance:<\/strong>\u00a0China controls\u00a0<strong>~100%<\/strong>\u00a0of Rare Earth Elements (REE) processing,\u00a0<strong>~80%<\/strong>\u00a0of global solar module manufacturing, and\u00a0<strong>~77%<\/strong>\u00a0of battery cell production capacity.<\/li>\n<li><strong>Projected Demand (IEA):<\/strong>\u00a0Global demand for critical minerals is set to\u00a0<strong>increase by 3.5x by 2030<\/strong>, with Lithium demand alone projected to rise\u00a0<strong>over 40-fold<\/strong>\u00a0by 2040 to meet climate targets.<\/li>\n<li><strong>Domestic Reserves:<\/strong>\u00a0The\u00a0<strong>5.9 million-tonne lithium reserve<\/strong>\u00a0discovered in Reasi, J&amp;K (2023) is a positive step, but extraction and processing remain long-term challenges.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><strong>Why are they Critical for India?<\/strong><\/p>\n<ul>\n<li><strong>Solar PV &amp; Wind:<\/strong>\u00a0Silicon, Copper, and REEs are vital for manufacturing photovoltaic cells and permanent magnets in wind turbines.<\/li>\n<li><strong>Energy Storage:<\/strong>\u00a0Lithium, Cobalt, and Nickel are the backbone of Lithium-ion batteries, crucial for grid stability and electric vehicles (EVs). India&#8217;s\u00a0<strong>Advanced Chemistry Cell (ACC) PLI scheme<\/strong>\u00a0is directly linked to securing these minerals.<\/li>\n<li><strong>Strategic Independence:<\/strong>\u00a0Over-reliance on a single country (China) creates a strategic vulnerability for India&#8217;s energy security and its\u00a0<strong>&#8216;Atmanirbhar Bharat&#8217;<\/strong>\u00a0(Self-reliant India) mission.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><strong>Government Initiatives &amp; The Road Ahead<\/strong><\/p>\n<ul>\n<li><strong>Khanij Bidesh India Ltd. (KABIL):<\/strong>\u00a0A joint venture (by NALCO, HCL, and MECL) to scout and secure mineral assets abroad. Its first major deal was for\u00a0<strong>lithium blocks in Argentina<\/strong>.<\/li>\n<li><strong>Critical Minerals List:<\/strong>\u00a0India&#8217;s first list identifies\u00a0<strong>30 critical minerals<\/strong>\u00a0for strategic focus.<\/li>\n<li><strong>Auction of Blocks:<\/strong>\u00a0The government has initiated the auction of\u00a0<strong>20 critical mineral blocks<\/strong>, including lithium and REEs.<\/li>\n<li><strong>The Road Ahead:<\/strong>\u00a0The focus must be on\u00a0<strong>boosting exploration<\/strong>\u00a0via PPPs,\u00a0<strong>investing in R&amp;D<\/strong>\u00a0for recycling and extraction technologies,\u00a0<strong>diversifying imports<\/strong>\u00a0through partnerships (e.g., with Australia under the\u00a0<strong>Critical Minerals Investment Partnership<\/strong>), and promoting a\u00a0<strong>circular economy<\/strong>\u00a0for Li-ion batteries.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h1><strong><u>2. The Future of the IMEC<\/u><\/strong><\/h1>\n<p><strong>GS Paper II \u2013 International Relations: Bilateral &amp; Global Groupings, India &amp; its Neighborhood.<\/strong><\/p>\n<p><strong>CONTEXT:<\/strong>\u00a0The India-Middle East-Europe Economic Corridor (IMEC), announced at the\u00a0<strong>G20 Summit in 2023<\/strong>, is a visionary project whose future is now clouded by geopolitical tensions, particularly the\u00a0<strong>Israel-Hamas conflict<\/strong>.<\/p>\n<p><strong>\u00a0<\/strong><strong>Key Data Points &amp; Pre-Pointers:<\/strong><\/p>\n<ul>\n<li><strong>Announcement:<\/strong>\u00a0Launched on the sidelines of the\u00a0<strong>G20 New Delhi Summit (Sept 2023)<\/strong>\u00a0by a partnership including India, the USA, the UAE, Saudi Arabia, the EU, France, Germany, and Italy.<\/li>\n<li><strong>Strategic Aim:<\/strong>\u00a0To create a reliable and cost-effective alternative to traditional sea routes, boost economic integration, and counter China&#8217;s\u00a0<strong>Belt and Road Initiative (BRI)<\/strong>.<\/li>\n<li><strong>Economic Potential:<\/strong>\u00a0Aims to\u00a0<strong>reduce transit time by 40%<\/strong>\u00a0and increase trade efficiency between India and Europe. A\u00a0<strong>Citi GPS report<\/strong>\u00a0estimated it could cut goods transit times between India and Europe by up to 12 days.<\/li>\n<li><strong>Geopolitical Hurdle:<\/strong>\u00a0The core rail link requires diplomatic normalization between\u00a0<strong>Saudi Arabia and Israel<\/strong>, a process that was underway but has been frozen due to the war.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><strong>Strategic Significance<\/strong><\/p>\n<ul>\n<li><strong>Trade &amp; Connectivity:<\/strong>\u00a0A multi-modal corridor (ship-rail-ship) connecting India to Europe via the UAE, Saudi Arabia, Jordan, and Israel.<\/li>\n<li><strong>Energy Security:<\/strong>\u00a0Would secure energy supplies and facilitate green energy exports (e.g., Hydrogen).<\/li>\n<li><strong>Countering BRI:<\/strong>\u00a0Presents a values-based, transparent alternative to China&#8217;s infrastructure diplomacy.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><strong>Challenges and The Path Forward<\/strong><\/p>\n<ul>\n<li><strong>Major Challenges:<\/strong>\n<ul>\n<li><strong>Geopolitical Roadblock:<\/strong>\u00a0The Israel-Hamas war has directly impacted the corridor&#8217;s most critical overland link.<\/li>\n<li><strong>Funding &amp; Execution:<\/strong>\u00a0Requires an estimated\u00a0<strong>$20-25 billion<\/strong>\u00a0in infrastructure investment.<\/li>\n<li><strong>Regional Instability:<\/strong>\u00a0Persistent conflict poses a perpetual risk.<\/li>\n<\/ul>\n<\/li>\n<li><strong>The Path Forward:<\/strong>\n<ul>\n<li><strong>Diplomatic Perseverance:<\/strong>\u00a0Reviving the Saudi-Israel normalization process is key.<\/li>\n<li><strong>Phased Implementation:<\/strong>\u00a0Focus on building the currently viable\u00a0<strong>India-UAE segment<\/strong>.<\/li>\n<li><strong>Strengthening Bilateral Ties:<\/strong>\u00a0Deepen economic partnerships with individual IMEC countries to keep the project&#8217;s spirit alive.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h1><strong><u>3. Why is the Fiscal Architecture of Municipalities Flawed?<\/u><\/strong><\/h1>\n<p><strong>GS Paper II \u2013 Governance &amp; Polity: Functions &amp; Responsibilities of Municipalities.<\/strong><\/p>\n<p><strong>CONTEXT:<\/strong>\u00a0Indian municipalities are financially crippled, unable to perform their basic functions effectively, due to a fundamentally flawed fiscal architecture that limits their revenue generation and creates dependency.<\/p>\n<p><strong>\u00a0<\/strong><strong>Key Data Points &amp; Pre-Pointers:<\/strong><\/p>\n<ul>\n<li><strong>Low Own-Source Revenue (OSR):<\/strong>\u00a0OSR for Indian ULBs is only\u00a0<strong>~0.5% of GDP<\/strong>, compared to\u00a0<strong>~6%<\/strong>\u00a0in South Africa and\u00a0<strong>~7%<\/strong>\u00a0in Brazil.<\/li>\n<li><strong>Property Tax Inefficiency:<\/strong>\u00a0Property tax collection efficiency is abysmally low, at\u00a0<strong>~37%<\/strong>\u00a0on average. It contributes only\u00a0<strong>~0.15% of GDP<\/strong>, compared to\u00a0<strong>2-3%<\/strong>\u00a0in developed nations.<\/li>\n<li><strong>Dependency on Transfers:<\/strong>\u00a0Transfers from state and central governments constitute\u00a0<strong>over 40%<\/strong>\u00a0of total municipal revenues, undermining autonomy.<\/li>\n<li><strong>Poor Creditworthiness:<\/strong>\u00a0Only\u00a0<strong>~15<\/strong>\u00a0Indian cities have been able to issue municipal bonds since the first issue in 1997, raising a meager\u00a0<strong>~\u20b94,500 crore<\/strong>\u00a0collectively.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><strong>The Core Flaws in the Architecture<\/strong><\/p>\n<ul>\n<li><strong>Limited Tax Powers:<\/strong>\u00a0ULBs have very limited power to introduce new taxes. The\u00a0<strong>74th Constitutional Amendment Act<\/strong>\u00a0left critical aspects like taxation powers to the discretion of state governments.<\/li>\n<li><strong>Weak State Finance Commissions (SFCs):<\/strong>\u00a0SFCs, which recommend fund devolution, are often not constituted on time, and their recommendations are\u00a0<strong>mostly non-binding<\/strong>.<\/li>\n<li><strong>Inability to Leverage Assets:<\/strong>\u00a0Municipalities own vast land assets but lack the legal and financial capacity to monetize them effectively for revenue generation.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><strong>Consequences &amp; The Way Forward<\/strong><\/p>\n<ul>\n<li><strong>Consequences:<\/strong>\u00a0Poor service delivery (solid waste management, water supply), stunted urban development, and increased dependency on higher tiers of government.<\/li>\n<li><strong>The Way Forward:<\/strong>\n<ul>\n<li><strong>Boost OSR:<\/strong>\u00a0Use\u00a0<strong>GIS mapping<\/strong>\u00a0for 100% property tax coverage and explore land-based financing tools like\u00a0<strong>Tax Increment Financing (TIF)<\/strong>.<\/li>\n<li><strong>Strengthen SFCs:<\/strong>\u00a0Make SFCs permanent bodies and their recommendations legally binding.<\/li>\n<li><strong>Enable Borrowing:<\/strong>\u00a0Build municipal capacity for financial management and credit ratings. The central government can provide\u00a0<strong>credit enhancement guarantees<\/strong>.<\/li>\n<li><strong>Implement 74th CAA in Spirit:<\/strong>\u00a0States must genuinely devolve the &#8220;<strong>3 Fs: Functions, Functionaries, and Funds<\/strong>&#8221; as per the 12th Schedule.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>1. Critical Minerals for India\u2019s Clean Energy Ambitions GS Paper III \u2013 Indian Economy &amp; Environment: Infrastructure (Energy),<\/p>\n","protected":false},"author":2,"featured_media":2452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-current-affairs"],"featured_image_urls":{"full":["https:\/\/arkreflectionsias.com\/studentportal\/wp-content\/uploads\/2025\/10\/generated-image-13.jpg",2048,2048,false],"thumbnail":["https:\/\/arkreflectionsias.com\/studentportal\/wp-content\/uploads\/2025\/10\/generated-image-13-150x150.jpg",150,150,true],"medium":["https:\/\/arkreflectionsias.com\/studentportal\/wp-content\/uploads\/2025\/10\/generated-image-13-300x300.jpg",300,300,true],"medium_large":["https:\/\/arkreflectionsias.com\/studentportal\/wp-content\/uploads\/2025\/10\/generated-image-13-768x768.jpg",640,640,true],"large":["https:\/\/arkreflectionsias.com\/studentportal\/wp-content\/uploads\/2025\/10\/generated-image-13-1024x1024.jpg",640,640,true],"1536x1536":["https:\/\/arkreflectionsias.com\/studentportal\/wp-content\/uploads\/2025\/10\/generated-image-13-1536x1536.jpg",1536,1536,true],"2048x2048":["https:\/\/arkreflectionsias.com\/studentportal\/wp-content\/uploads\/2025\/10\/generated-image-13.jpg",2048,2048,false],"morenews-large":["https:\/\/arkreflectionsias.com\/studentportal\/wp-content\/uploads\/2025\/10\/generated-image-13-825x575.jpg",825,575,true],"morenews-medium":["https:\/\/arkreflectionsias.com\/studentportal\/wp-content\/uploads\/2025\/10\/generated-image-13-590x410.jpg",590,410,true]},"author_info":{"display_name":"Nithin DTPoperator","author_link":"https:\/\/arkreflectionsias.com\/studentportal\/author\/nithindtp\/"},"category_info":"<a href=\"https:\/\/arkreflectionsias.com\/studentportal\/category\/daily-current-affairs\/\" rel=\"category tag\">DAILY CURRENT AFFAIRS<\/a>","tag_info":"DAILY CURRENT AFFAIRS","comment_count":"0","_links":{"self":[{"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/posts\/2352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/comments?post=2352"}],"version-history":[{"count":2,"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/posts\/2352\/revisions"}],"predecessor-version":[{"id":2451,"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/posts\/2352\/revisions\/2451"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/media\/2452"}],"wp:attachment":[{"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/media?parent=2352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/categories?post=2352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arkreflectionsias.com\/studentportal\/wp-json\/wp\/v2\/tags?post=2352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}