17 April 2025 Current Affairs

Retail Inflation at 5.5-Year Low

Retail inflation in India eased to a five-and-a-half-year low of 3.34% in March 2025, down from 3.61% in February. The decline was mainly due to a fall in food prices, especially vegetables, eggs, and pulses. This comes amid two consecutive repo rate cuts by the Reserve Bank of India, reflecting a shift in policy focus from inflation control to growth stimulation.

Key Highlights (Pointwise Format)

1. Consumer Price Index (CPI) & Food Inflation

• Retail inflation (CPI) fell to 3.34% in March, from 3.61% in February 2025.
• Consumer Food Price Inflation (CFPI) dropped to 2.7%, a three-year low, from 3.75% in February.
• Tomato prices dropped sharply by 35% in March (vs 29% in Feb).
• Potato prices rose by 2.3%, down from a 26% rise in the previous month.
• Onion prices saw a 19% increase, down from 30% in February.
• Overall, vegetable prices deflated by 7% for the second month in a row.
• Pulses fell by 2.7%, while egg prices dropped over 3%.
• Rice and wheat inflation stood at 4.9% and 9%, slightly lower than February’s levels.

2. Fuel and Light Inflation

• Fuel and light inflation rose to 1.48%, marking the first price rise since September 2023.

3. Urban vs Rural Inflation

• Rural inflation: 3.25% (down from 3.79% in Feb).
• Urban inflation: Slightly rose to 3.43% from 3.32% in Feb.

4. State-wise Inflation

• Highest inflation: Kerala (6.6%), followed by Chhattisgarh, Maharashtra, Tamil Nadu, Karnataka, Assam, and Haryana (all above 3.3%).
• Lowest inflation: Delhi (1.5%) and Telangana (1.1%).

5. Wholesale Price Index (WPI)

• WPI inflation eased to 2.05% in March, from 2.38% in February.
• Primary articles inflation moderated to 0.76% from 2.8%.
• Fuel and power prices rose 0.2% (from -0.7% in Feb).
• Manufactured goods inflation increased to 3.07% (from 2.86%).
• WPI food index slowed to 4.66%, down from 5.9%.

6. Monetary Policy Outlook

• RBI cut the repo rate by 50 basis points (25 bps each over two rounds).
• Economists expect further cuts with a terminal repo rate of 5%–5.25%.
• The soft CPI data supports RBI’s accommodative policy stance prioritising growth over inflation.
• Rate cuts are expected to boost consumption and housing demand, especially in the affordable housing segment.

Brief Note on Inflation

Inflation refers to the general rise in prices of goods and services over time, leading to a decline in the purchasing power of money. It is measured using indices such as the Consumer Price Index (CPI) and Wholesale Price Index (WPI).

• CPI reflects the changes in prices experienced by consumers in daily life.
• WPI tracks changes in wholesale prices at the producer level.
  Moderate inflation is a sign of a growing economy, but high inflation reduces consumer purchasing power and impacts savings.

CBI Arrests under Operation Chakra V

The Central Bureau of Investigation (CBI) has arrested four individuals from Mumbai and Moradabad for their involvement in a sophisticated ‘Digital Arrest’ scam. The arrests were made under Operation Chakra V, following searches at 12 locations across multiple states. The case was initially filed by Jhunjhunu cyber police and later taken over by the CBI on the Rajasthan government’s request.

Key Highlights (Pointwise Format)

1. Nature of the Scam:

• In the ‘digital arrest’ fraud, cyber-criminals impersonate law enforcement officials (e.g., RBI, police) and contact victims via phone or video calls.
• They create fear using fake uniforms, government office backgrounds, and legal jargon, claiming the victim is under "digital arrest" for a supposed crime.
• Victims are extorted for money under the pretense of being “released” from virtual custody.

2. Case Details:

• The victim in this case was digitally detained for over 3 months and extorted 42 times, amounting to ₹7.67 crore.
• The fraudsters psychologically manipulated the victim using fear and coercion tactics.

3. CBI Investigation:

• CBI used advanced investigative tools to analyse data and suspect profiles.
• Searches were conducted across 12 locations, including Moradabad, Sambhal, Mumbai, Jaipur, and Krishnanagar (West Bengal).

4. Arrests and Seizures:

• Four people were arrested, and substantial material was seized, including:

- Bank documents (account details, cheques, deposit slips)

- Digital evidence (devices, transaction records)

• The accused were presented before a court and remanded to 5 days’ police custody.

5. Public Awareness:

• Prime Minister Narendra Modi had warned citizens against such scams in his “Mann Ki Baat” address in October 2024.
• Citizens have been urged to report such frauds to the national cyber helpline immediately to prevent further victimisation.

SC Slams UP Govt, Lays Down Guidelines to Curb Child Trafficking

The Supreme Court of India has issued strict directions and expressed deep concern over rising child trafficking cases, particularly in hospitals. The court was hearing a petition related to a child trafficking case in Uttar Pradesh where multiple accused had gone missing. Justice JB Pardiwala stressed accountability, judicial vigilance, and state action to curb the menace.

Key Highlights (Pointwise Format)

1. Strict Action Against Hospitals

• Hospitals must lose their license if a newborn goes missing.
• Justice Pardiwala emphasized: “The first step should be to suspend the license” when a newborn is trafficked from a hospital.

2. Judicial Criticism of Bail Handling

• The Allahabad High Court was criticized for “callously” granting bail in a child trafficking case.
• Many accused went missing as no conditions like weekly police reporting were imposed.

3. CBI and Trial Directions

• All accused have been ordered to surrender immediately.
• Charges must be framed within a week, and if absconding, courts must issue non-bailable warrants.

4. Guidelines to Curb Child Trafficking

• The Supreme Court laid down detailed recommendations to combat child trafficking.
• It directed all state governments and high courts to implement them and monitor pending trials.

5. Emotional Appeal and Data Insights

• Justice Pardiwala highlighted the emotional trauma parents face when children are trafficked.
• As per NCRB 2022, 2,250 child trafficking cases were reported, with Telangana, Maharashtra, and Bihar leading in numbers.

US-Philippines Conduct Large-Scale ‘Balikatan’ Military Drills Amid Regional Tensions

Around 14,000 troops from the United States and the Philippines are participating in joint battle-readiness exercises in the Philippines from April 21 to May 9, 2025. The annual Balikatan ("shoulder-to-shoulder") drills aim to boost military cooperation, strengthen deterrence, and ensure regional security amid rising tensions in the South China Sea and Taiwan Strait.

Key Highlights (Pointwise Format)

1. Participants and Scope of Exercises

• 9,000 US and 5,000 Filipino troops are involved in the drills.
• Australia (200 personnel) is also participating; Japan and other allies are sending delegations.
• The exercises include live-fire drills, air and naval operations, and mock battlefield scenarios.

2. Military Assets and Systems Deployed

• The US has deployed a mid-range missile system, including Tomahawk Land Attack Missiles and SM-6s.
• Unmanned sea vessels and the Navy Marine Expeditionary Ship Interdiction System will also be tested.
• Aerial surveillance and anti-ship missile drills will form part of the war games.

3. Geopolitical Context and China’s Concerns

• Drills are being held near disputed South China Sea zones and close to Taiwan, raising Beijing’s objections.
• China views the deployment as provocative and has warned it could lead to an arms race in the region.

4. Strategic Locations and Objectives

• Training will occur across Philippine territory, with special ops in Batanes province (close to Taiwan).
• The US mid-range missile system has been relocated near a contested shoal in the South China Sea.
• Exercises will include repelling mock invasions and destroying enemy naval threats.

5. US Assures Commitment Despite ‘America First’ Concerns

• Amid doubts due to Trump’s “America First” policy, US Defence Secretary Pete Hegseth reiterated America's commitment to regional allies.
• He emphasized the strategy of "peace through strength" and denied any plan for war, but stated deterrence against Chinese aggression remains key.

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