DAILY CURRENT AFFAIRS

By admin: Nov. 15, 2021

US Inflation and Impact on India:

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Why in the news?

Recently, in the released news At 6.2%, retail inflation in the US has made the highest year-on-year jump in 3 decades.

What is Inflation?

• Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc. 
• Inflation measures the average price change in a basket of commodities and services over time. 
• Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency. This is measured in percentage
• The opposite and rare fall in the price index of this basket of items is called 'deflation'.

What are the effects and main causes of Inflation?

• The purchasing power of a currency unit decreases as the commodities and services get dearer. This also impacts the cost of living in a country. When inflation is high, the cost of living gets higher as well, which ultimately leads to a deceleration in economic growth.
•  A certain level of inflation is required in the economy to ensure that expenditure is promoted and hoarding money through savings is demotivated.

Causes of inflation:

• High demand and low production or supply of multiple commodities create a demand-supply gap, which leads to a hike in prices.
• Excess circulation of money leads to inflation as money loses its purchasing power.
• With people having more money, they also tend to spend more, which causes increased demand.

Cause of inflation in US 

• The reason may be either due to increase in demand or a decrease in supply. The US has registered a quick recovery after vaccination. There was unexpected recovery in all-round demand from consumers. 
• The government invested billions of dollars to stimulate demand. The demand for the consumables has increased but supply is yet to be fully back on track. This supply chain collapse has been a major reason for inflation.
•  While the US has seen the sharpest increase in prices, inflation has surprised policymakers across most of the major economies, be it Germany, China or Japan.

What will be Impact on India?

•   As inflation grows in the US, the prices of goods imported from the US become costlier. The US Federation will likely tighten monetary policy.
•   Indian firms trying to raise money from outside India will find it costlier to do so.
•   RBI will be forced to increase interest rates to align with international trends.

32nd EDITION OF INDO-THAI COORDINATED PATROL (CORPAT):

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 Why in the news?

The 32nd edition of India-Thailand Coordinated Patrol (Indo-Thai CORPAT) between the Indian Navy and the Royal Thai Navy was conducted from 12 – 14 November 2021.

Key highlights:

•  Indian Naval Ship (INS) Karmuk, an indigenously built Missile Corvette and His Majesty’s Thailand Ship (HTMS) Tayanchon, a Khamrosin Class Anti-submarine Patrol Craft, along with Maritime Patrol Aircraft from both navies are participating in the CORPAT.

About:

• The Indo – Thai CORPAT has been conducted along the International Maritime Boundary Line since 2005.
• With an aim of keeping this vital part of the Indian Ocean safe and secure for international trade, the two navies have been undertaking CORPAT bi-annually.
• The countries also aim to implement the United Nations Conventions on Laws of the Sea (UNCLOS) through the exercise. 
• The exercise is held to keep the Indian Ocean safe and secure for international trade and commercial shipping.

UNCLOS:

• The UNCLOS specifies regulations related to conservation marine environment, marine natural resources, drug trafficking, unregulated fishing, illegal immigration, exchange of information and conduct of search and rescue operation at sea.

Climate change & locust infestations: FAO seeks adaptation plans at CoP26 event:

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Why in the news?

Infestation of desert locusts, which has plagued a vast swathe from eastern Africa to India in recent years, is closely linked to climate change.

Key highlights:

• The conference was recently held alongside the 26th Conference of Parties (CoP26) to the United Nations Framework Convention on Climate Change. 
•  In the conference, Plans to mitigate climate change, therefore, must include action against pests and diseases, according to panelists at the Global Landscapes Forum Climate hybrid conference.

About Locust:

• Locusts are a collection of certain species of short-horned grasshoppers in the family Acrididae that have a swarming phase.
• These insects are usually solitary, but under certain circumstances they become more abundant and change their behavior and habits, becoming gregarious.
• The swarms devour leaves, flowers, fruits, seeds, bark, and growing points, and also destroy plants by their sheer weight as they descend on them in massive numbers.

History of Locust:

•  It is said  that locusts were part of the Mahabharata during Karna’s battle with Arjuna, modern-day records suggest that since the beginning of the 19th century, there have been at least eight “outbreaks” in India from 1812 to 1889.
• According to the history of the Locust Warning Office published by the UN Food and Agriculture Organization (FAO), there were “serious invasions” of locusts in India every few years during the 1900s.

Impacts of Locust attacks:

• Locusts have been a bane especially to farmers in several countries, including India, Pakistan and Iran.
• In East Africa and Yemen alone, damages and losses in 2020 due to locusts could amount to as much as $8.5 billion.
• Locust infestations can also harm livelihoods and be a threat to regional investments in ensuring food security.
• They are a threat to pollinators and wildlife.
• There are two meteorological drivers behind the current locust attack in India:

1. The unseasonal heavy rains in the mainspring-breeding tracts in the Arabian peninsula in March-April.
2. The strong westerly winds from the Arabian peninsula to India.

Affected areas:

• Locusts have been a bane especially to farmers in several countries, including India, Pakistan and Iran.
• Swarms of desert locusts entered western India from Pakistan and destroyed crops in many states such as Rajasthan, Uttar Pradesh (UP), Madhya Pradesh.

What steps should be taken to prevent it:

• Preventive control of the locust attack by aerial spraying of the optimum amount of insecticides at all possible breeding sites, along with continuous crop monitoring during the subsequent Kharif season, is required.
• There is a need to strengthen the disaster management framework at the local level as highlighted by the Fourteenth Finance Commission report and Disaster Management Act, 2005.
• A broad-spectrum pesticide is a powerful pesticide that targets entire groups or species of organisms.
• The Indian Institute of Sugarcane Research, Lucknow, advised farmers to spray chemicals like l deltamethrin, fipronil, or malathion to control the swarms.