DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 24th March 2025

Syllabus:

• Prelims & Mains – ENVIRONMENT

Context: Soaring temperatures are leading to rapid and largely irreversible changes in the mountain ranges of the world, according to a new UNESCO report.

Background: –

• The ‘The United Nations World Water Development Report 2025 – Mountains and glaciers: Water towers’ was released to mark the first-ever World Day for Glaciers on March 21.

Key takeaways

Glacier Melting

• Glaciers are disappearing faster than ever, with the last three-year period seeing the largest glacial mass loss on record. 
• Scientists measure the state of a glacier by measuring how much snow falls on it and how much melt occurs every year, according to the World Glacier Monitoring Service (WGMS).
• Since 1975, glaciers, which do not include the Greenland and Antarctica ice sheets, have lost more than 9,000 billion tonnes of mass.
• Warmer temperatures are not the sole cause of glacier melting. Increased wildfires and dust storms deposit black carbon and particulates on ice, darkening surfaces and enhancing solar radiation absorption. This alters the surface energy balance, accelerating melt rates, especially in high solar radiation areas, as noted in the UNESCO report.

Accelerating Permafrost Thaw

• Permafrost is any ground that stays frozen — 0 degrees Celsius or lower — for at least two years straight. 
• Rising temperatures are melting permafrost rapidly. Mountain soils with permafrost contain approximately 4.5% of the global soil organic carbon, according to the UNESCO report. As the permafrost thaws, this organic carbon is released into the atmosphere, exacerbating climate change.
• Moreover, permafrost in mountain regions also stabilises rock slopes, moraines (material left behind by a moving glacier), and debris-covered slopes. However, due to permafrost melting, slopes become more vulnerable to erosion, increasing the risk of landslides and other hazards.

Decline In Snow Cover: 

• According to the UNESCO report, snow cover in nearly all mountain regions has reduced, especially in spring and summer, with an expected further decrease in the coming decades. Snow cover is the total of all the snow and ice on the ground. It includes new snow and previous snow and ice that have not melted.

Erratic Snowfall Patterns: 

• In some regions, the elevation at which rainfall transitions to snowfall is shifting upwards due to atmospheric warming, the UNESCO report says. “Lower elevations and warmer climates are therefore undergoing greater decreases in snow cover depth and duration,” the report added.
• Some mountain ranges are experiencing an increase in rainfall over snowfall, shorter snow duration, earlier snowmelt, and a reduction in snow-covered areas.

Why is this significant?

• Mountains, which cover 33 million sq km of the Earth’s surface, are crucial for sustaining life. For instance, around 2 billion people downstream depend on mountains for freshwater resources from melting glaciers.
• “Water flows from mountains will become more erratic, uncertain and variable. Changes in the timing and volume of peak and low flow periods, increased erosion and sediment loads will affect water resources downstream, in terms of quantity, timing and quality,” the UNESCO report said.
• Glacier melting and permafrost thaw also increase the risk of glacial lake outburst floods (GLOFs). GLOFs are sudden and catastrophic floods caused by the failure of natural dams, usually formed by glacial moraines or ice, which contain glacial lakes.
• According to WGMS, melted ice of glaciers accounts for 25 to 30% of the currently observed increase in global sea levels.

Source: Indian Express

Syllabus:

• Prelims & Mains – CURRENT EVENT 

Context: A poaching network in central India, using digital payments with “hawala funds” and multiple supply lines to Nepal and Myanmar, has taken out “100 to any number” of tigers since 2022, an investigation by The Indian Express has found.

Background: –

• Hawala enables fund transfers without physical money movement, similar to banking transactions. However, unlike banks, it operates through informal, unregulated channels based on trust. A vast network of hawaladars facilitates these transactions, primarily in West Asia, North and East Africa, and the Indian subcontinent.

How Hawala works

• A person ‘A’ working in Muscat wants to send money to his father ‘B’ in Lucknow through the hawala system.
•  To do so, ‘A’ deposits the amount with a hawaladar in Muscat, receiving a token—either a physical item (such as a banknote) or a code transmitted via phone or electronic means. ‘A’ then shares this token with ‘B,’ who presents it to a hawaladar in Lucknow to receive the equivalent amount. 
• Notably, no physical transfer of money occurs between Muscat and Lucknow; instead, the hawaladars at both locations settle the accounts later through their network.

Despite there being no legal recourse in case of fraud, hawala transactions are popular, and see a variety of uses.

• Sending Remittances: Remittances are funds sent by migrant workers to their homes, to support their families. Many migrants, especially those working in West Asia, use hawala because of convenience and lack of access to formal systems. 
• Illegal Activities: While sending remittances using hawala may or may not be illegal, many illegal operations — from smuggling and money laundering to drug trade and terror finance — use hawala networks for the anonymity, and lack of regulation and scrutiny they offer.

Source: Indian Express

Syllabus:

• Prelims – ART & CULTURE

Context: Vinod Kumar Shukla wins the 59th Jnanpith Award, India’s highest literary honour. 

Background:

• The 88-year-old author of novels such as Naukar ki Kameez, about a clerk forced to submit to professional hierarchies, and Khilega Toh Dekhenge, about a teacher who arrives in a village with eccentric residents, is the 12th Hindi writer to win the award and the first from Chhattisgarh.

Key takeaways

• The Jnanpith Award is India’s highest literary honor, awarded annually by the Bharatiya Jnanpith to an author for outstanding contributions to Indian literature.
• Instituted in 1961, the award is bestowed only on Indian writers writing in Indian languages included in the Eighth Schedule to the Constitution of India and English, with no posthumous conferral.
• Until 1982 the award was presented for a specific work; thereafter, it was given for a writer’s overall contribution to literature. Since then the award has typically been given every year to one author, although in some years it has been jointly offered to two.
• The first Jnanpith Award was given in 1965 to G. Sankara Kurup for his contributions to Malayalam literature.
• The prize carries a cash award, a citation, and a bronze replica of Vagdevi (Saraswati), the goddess of learning.

Source: Indian Express

Syllabus:

• Prelims  & Mains – ECONOMY

Context: IndusInd Bank reported derivative losses of Rs 2,100 crore on March 10, which pulled down its share price by 23%.

Background: –

• The bank sought to put the blame on a change of rules by the Reserve Bank of India relating to the derivative portfolio. However, the loss from the derivative book remained unresolved for a long time, leading to the accumulation of losses.

Key takeaways 

• Derivatives are financial contracts whose value is derived from the performance of an underlying asset. The underlying asset can be tangible (e.g., gold, oil) or intangible (e.g., stock index, interest rate).
• Purpose: Derivatives are used for:
  • Hedging: Reducing or mitigating risk.
  • Speculation: Betting on the future price movements of assets.
  • Arbitrage: Exploiting price differences in different markets.

Types of Derivatives

• Forward Contracts
  • A customized agreement between two parties to buy or sell an asset at a future date at a predetermined price.
  • Traded over-the-counter (OTC) and not standardized.
  • Example: An oil producer and an airline company agreeing on a fixed price for crude oil delivery in the future.
• Futures Contracts
  • Similar to forwards but standardized and traded on exchanges (e.g., NSE, BSE).
  • Reduces counterparty risk due to clearinghouse settlement.
  • Example: A farmer locking in a price for wheat to be sold at a future date.
• Options Contracts – Gives the right but not the obligation to buy or sell an asset at a set price before or on a specific date.
  • Two types:
    • Call Option: Right to buy at a specified price.
    • Put Option: Right to sell at a specified price.
  • Example: An investor purchasing a call option on a stock, expecting its price to rise.
• Swaps – A contract where two parties exchange cash flows or liabilities based on a financial instrument.
  • Common types:
    • Interest Rate Swaps: Exchange of fixed and floating interest rates.
    • Currency Swaps: Exchange of payments in different currencies.
  • Example: An Indian company exchanging its fixed interest rate loan for a floating rate to reduce costs.

Source: Indian Express

Syllabus:

• Prelims – CURRENT EVENT 

Context: Minister of State for the Ministry of Development of North Eastern Region, Dr. Sukanta Majumdar, in a written reply to the Rajya Sabha, stated that the North Eastern Handicrafts and Handlooms Development Corporation Ltd. (NEHHDC) has received the Oeko-Tex certification from Germany for eri silk.

Background: –

• Eri silk, known for its eco-friendly and sustainable qualities, is gaining recognition in the luxury textile market. Its chemical-free production and ethical sourcing make it a preferred choice for conscious consumers and premium brands.

Key takeaways

• Eri silk is a unique, non-violent (Ahimsa) silk produced mainly in Northeast India, particularly in Assam, Meghalaya, Nagaland, and Manipur. Unlike other silk varieties, Eri silk is obtained without killing the silkworm, making it eco-friendly and sustainable.

Origin and Production

• Silkworm: Eri silk is derived from the domesticated silkworm Samia ricini, which feeds on castor leaves.
• Ethical Process: Unlike traditional silk production, Eri silk allows the moth to emerge from the cocoon naturally, making it a cruelty-free alternative.
• Geographical Indication (GI): Eri silk has been recognized as a GI-tagged product from Assam, highlighting its authenticity and regional importance.

Characteristics

• Texture: Eri silk has a woolly, cotton-like texture, making it distinct from other silks like Mulberry or Tussar.
• Durability: Known for its strength and elasticity, Eri silk is highly durable and resistant to wrinkles.

Source: Krishi Jagran

Q1.) Consider the following statements regarding the Jnanpith Award:

1. It is India’s highest literary honor, awarded for outstanding contributions to Indian literature.
2. The award was instituted in 1961 and initially given for a specific literary work.
3. It is conferred upon writers of Indian languages included in the Eighth Schedule of the Constitution.

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.) With reference to financial derivatives, which of the following statements is/are correct?

1. A futures contract is a standardized agreement to buy or sell an asset at a future date at a predetermined price.
2. Options contracts obligate the buyer to either buy or sell the underlying asset before the contract expiry.
3. Derivatives can be used for hedging, speculation, and arbitrage.

Select the correct answer using the codes given below:
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2, and 3

Q3.) Consider the following statements regarding Eri Silk:

1. Eri silk is produced primarily in Northeast India and is known as “Ahimsa Silk” due to its non-violent production process.
2. The silk is derived from the domesticated silkworm Samia ricini, which feeds on castor leaves.
3. Unlike Mulberry silk, Eri silk lacks elasticity and is not durable.

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

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) – d

Q.2) – a

Q.3) – a