DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 3rd January 2025

Syllabus:

• Prelims & Mains – ART & CULTURE

Context: Kerala Chief Minister Pinarayi Vijayan used the inaugural event of the 92nd Sivagiri pilgrimage to slam what he saw as attempts to appropriate social reformer Sree Narayana Guru into the Sanatana Dharma fold.

Background: –

• Sree Narayana Guru (1856–1928) , who founded the Sivagiri Madhom over a century ago, is regarded as one of the foremost social reformers of Kerala.

About Sree Narayana Guru

• Sree Narayana Guru was born in 1856, in an Ezhava (an oppressed caste) family, in the village of Chempazhanthy near Thiruvananthapuram, in the erstwhile state of Travancore.

Philosophy of Sree Narayana Guru

• Oneness of Humanity:
  • Advocated the idea of “One Caste, One Religion, One God for Mankind.”
  • Believed that all humans are equal regardless of caste, religion, or social status.
• Spiritual Inclusivity:
  • Emphasized the need for inner purity and self-realization over ritualistic practices.
  • Promoted the idea that true spirituality transcends caste and social divisions.
• Education and Social Reform: Highlighted the importance of education as a tool for empowerment and social progress.
• Composed spiritual poems and hymns, including works like “Atmopadesa Shatakam” and “Daiva Dasakam”, to spread his teachings in a language accessible to all.

Major Events Associated with Sree Narayana Guru

• Consecration of Aruvippuram Shiva Temple (1888): A revolutionary act challenging the Brahmanical monopoly over temple rituals.
• Establishment of SNDP Yogam (1903): Provided a platform for community organization and collective action against caste oppression.
• Sivagiri Ashram (1904) : He founded the Sivagiri Ashram, which became a center for spiritual and educational activities.
• Advaita Ashram at Aluva (1913): Founded to propagate Advaita philosophy and social reform.
• Vaikom Satyagraha (1924–1925): Guru’s support for the movement seeking temple entry for lower-caste communities was instrumental in its success.
• Consecration of a Mirror in Kalavancode Temple (1927): Symbolized the idea that divinity resides within oneself, rather than external idols.

Source: Hindu

Syllabus:

• Prelims – ECONOMY

Context: The Securities & Exchange Board of India (SEBI) has unearthed a front-running scam in the securities market and debarred 22 entities, including stock brokers, for alleged involvement and impounded ₹66 crore as ‘wrongful gains.’

Background: –

• SEBI’s Prohibition of Fraudulent and Unfair Trade Practices Regulations (PFUTP) explicitly bans front-running.

Key takeaways

• Front-running refers to the unethical or illegal practice where a broker, trader, or individual with insider access executes trades based on advance knowledge of pending large orders from clients or institutions that could influence market prices. 
• The objective is to profit from anticipated price movements before the larger trade impacts the market.
• How Front-Running Works
  • Step 1: Advance Information (non-public information) : A broker or trader becomes aware of a large buy or sell order from a client or institutional investor.
  • Step 2: Personal Trade Execution: Before executing the client’s order, the broker/trader places their own trade to benefit from the expected price movement. The large order impacts the market, and the broker/trader profits by selling or buying at a favorable price.

Source: The Hindu

Syllabus:

• Prelims & Mains – ECONOMY

Context: The Centre announced the formation of an expert panel to revise the constituents of the country’s Wholesale Price Index (WPI) in light of the structural changes in the economy that have occurred between 2011-12, the current base year for the critical price gauge, and 2022-23 that would be the new base year.

Background:

• The panel would also examine the composition of, and the methodology for compilation of a new Producers’ Price Index or PPI  and, more importantly, recommend a roadmap for India to switch over from using WPI to the PPI.
• The group has been asked to submit its final report to the Office of the Economic Adviser in the Commerce and Industry Ministry within 18 months, effectively giving it a June 30, 2026 deadline.

Reasons for the setbacks in summits

• Wholesale Price Index (WPI) is a measure of the average change in the prices of goods at the wholesale level, before they reach the retail market. It is one of the key indicators to track inflation in the economy.

Components of WPI in India

• Categories of Goods:
  • Primary Articles (22.6% weight): Includes food articles, non-food articles, and minerals.
  • Fuel and Power (13.2% weight): Includes items like coal, electricity, and mineral oils.
  • Manufactured Products (64.2% weight): Includes various industrial goods such as textiles, chemicals, and machinery.
• Base Year: The current base year for WPI in India is 2011–12.
• Frequency of Data: WPI data is released monthly by the Office of the Economic Adviser, Ministry of Commerce and Industry.

Limitations of WPI

• Excludes Services: WPI does not account for the price changes in the service sector, which constitutes a significant part of India’s GDP.
• Retail Prices Missing: It measures prices at the wholesale level, not reflecting the actual burden on end consumers.
• Outdated Composition: The current WPI composition and weights do not fully represent India’s modern economic structure.
• Volatility in Primary Articles: Prices of primary articles, especially food, are subject to high seasonal volatility, skewing the index.

Producer Price Index (PPI): An Alternative

• Producer Price Index (PPI) is a more comprehensive measure of inflation that tracks the average change in the selling prices received by domestic producers for their goods and services.
• Advantages of PPI Over WPI
  • Covers Services: Unlike WPI, PPI includes the service sector, offering a holistic view of inflation.
  • Reflects Supply-Side Dynamics: Tracks price changes throughout the production process, from raw materials to finished goods.
  • International Best Practices: Most advanced economies like the US, UK, and the EU use PPI as a standard measure of inflation.
  • Better Policy Insights: Provides insights into the supply chain, helping policymakers address inflationary pressures at their source.

Source: The Hindu

Syllabus:

• Prelims – CURRENT EVENT

Context: The Union Cabinet extended the one-time special subsidy on fertilizer Diammonium Phosphate (DAP) at a rate of ₹3,500 per metric tonne till from January 1, 2025 till further orders.  

Background: –

• The extension is aimed at maintaining price stability and addressing the challenges posed by global market fluctuations and geopolitical tensions.

Key takeaways

• Di-Ammonium Phosphate (DAP) is a widely utilized fertilizer in India, second only to urea in popularity. It provides essential nutrients— nitrogen (N) and phosphorus—crucial for plant growth.
• It’s highly soluble and thus dissolves quickly in soil to release plant-available phosphate and ammonium.
• In the financial year 2023, India produced approximately 4.3 million metric tons of DAP. Despite domestic production, India also imports DAP to meet the high demand from the agricultural sector.
• DAP has additional uses, including:
  • As a fire retardant. For example, a mixture of DAP and other ingredients can be spread in advance of a fire to prevent a forest from burning. It then becomes a nutrient source after the danger of fire has passed.
  • In various industrial processes, such as metal finishing
  • An addition to wine to sustain yeast fermentation

Source: PIB

Syllabus:

• Prelims – CURRENT EVENT

Context: Double Olympic medallist Manu Bhaker has been chosen for the Major Dhyan Chand Khel Ratna award along with World chess champion D. Gukesh, men’s hockey captain Harmanpreet Singh and Paralympic gold medallist Praveen Kumar. The government has listed 32 athletes for the Arjuna Award, with 16 of them being Paralympians.

Background: –

• Manu’s initial exclusion from the award list, attributed to the lack of self-application under the government’s revised process, sparked controversy. With the Union Sports Minister having the final say, it was not a surprise to find Manu’s name being added to the list. This mirrors a past precedent where Saina Nehwal was granted the Khel Ratna without any application.

Key takeaways 

Major Dhyan Chand Khel Ratna

• Major Dhyan Chand Khel Ratna was instituted in the year 1991–1992. It was formerly known as the Rajiv Gandhi Khel Ratna Award and is the highest sporting honour of India. 
• The first recipient of the award was chess Grandmaster Viswanathan Anand, who was honoured for the performance in the year 1991–1992. In 2001, sport shooter Abhinav Bindra, then aged 18, became the youngest recipient of the award.
• The award is given for the spectacular and most outstanding performance in the field of sports by a sportsperson over the period of the previous four years. The award comprises “a medallion, a certificate, and a cash prize of ₹25 lakh.

Arjuna Award

• ‘Arjuna Award for outstanding performance in Sports and Games’ is given for good performance over a period of the previous four years and for showing qualities of leadership, sportsmanship and a sense of discipline.
• The Award consist of a statuette, a certificate, ceremonial dress, and a cash Award of Rs. 5.00 lakh
• Arjuna Award (Lifetime) is given to honour and motivate those sportspersons who have contributed to sports by their performance and continue to contribute to promotion of sports even after their retirement from active sporting career.

Dronacharya Award

• ‘Dronacharya Award for outstanding coaches in Sports and Games’ is given to coaches for doing outstanding and meritorious work on a consistent basis and for enabling sportspersons to excel in International events.

Maulana Abul Kalam Azad (MAKA) Trophy

• The overall top performing university in Khelo India University Games is given the Maulana Abul Kalam Azad (MAKA) Trophy.

Source: The Hindu

Q1.) With reference to the Wholesale Price Index (WPI) and Producer Price Index (PPI) in India, consider the following statements:

1. WPI includes the prices of both goods and services, while PPI focuses only on goods.
2. The current base year for WPI in India is 2011–12.
3. PPI provides better insights into supply-side inflation compared to WPI.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2, and 3

Q2.) Consider the following statements regarding Di-Ammonium Phosphate (DAP):

1. DAP is the most widely used fertilizer in India, surpassing urea.
2. It provides both nitrogen and phosphorus, which are essential for plant growth.
3. India meets its entire demand for DAP through domestic production.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2, and 3

Q3.) With reference to the Major Dhyan Chand Khel Ratna Award, consider the following statements:

1. It is awarded annually for the most outstanding performance in the field of sports over the previous four years.
2. The award comprises a medallion, a certificate, and a cash prize of ₹1 lakh.
3. It is awarded to only one person in a year.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 1 only

(c) 2 and 3 only

(d) 1, 2, and 3

Comment the answers to the above questions in the comment section below!!

ANSWERS FOR ’  Today’s – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs

Q.1) – c

Q.2) – a

Q.3) – c