In News:

The Ministry of Statistics and Programme Implementation (MoSPI) released the first press note of the revised Consumer Price Index (CPI) series with base year 2024=100. The data reported retail inflation at 2.75% (Year-on-Year) for January 2026.

This marks the transition from the earlier base year 2012=100 to 2024=100, reflecting updated consumption patterns of households.

What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) measures the change in retail prices of a fixed basket of goods and services consumed by households over time.

• It is India’s headline retail inflation indicator.
• Inflation is expressed as the percentage change in CPI over the same month of the previous year (YoY).

Compiled and Published By

• Published by: Ministry of Statistics and Programme Implementation
• Through: National Statistical Office (NSO)
• Price collection: Field Operations Division of NSO

Base Year Revision

• New Base Year: 2024 = 100
• Earlier Base Year: 2012 = 100
• Weights Source: Household Consumption Expenditure Survey (HCES) 2023–24

Base year revision ensures that:

• The consumption basket reflects current spending patterns.
• Inflation measurement aligns with structural changes in the economy.

Methodology Used in CPI (Base 2024)

1. Jevons Index (Item Level)

• Used at the individual item level.
• Calculates the average of price relatives (ratio of current to base prices).
• Reduces distortion caused by extreme values.

2. Young / Modified Laspeyres Index (Group Level)

• Aggregates item-level indices using fixed expenditure weights.
• Higher-weight items (e.g., food, rent) influence CPI more than low-spending items.

3. Combined CPI (All-India)

• Calculated by combining:
  • Rural CPI
  • Urban CPI
• Weighted by their respective shares in total consumption.

Thus, if rural consumption share is higher, rural inflation has greater influence on the all-India CPI.

Key Features of CPI (Base 2024=100)

1. Expanded Classification (12 Groups Instead of 6)

Earlier CPI had 6 major groups. The new series follows an updated international classification system with 12 broader and clearer categories, including:

• Food & beverages
• Housing
• Health
• Education
• Transport
• Communication
• Recreation & culture
• Miscellaneous services

2. Expanded Basket of Items

• Earlier basket: 299 items
• New basket: 358 items

The revised basket better captures:

• Modern consumption habits
• Digital and service-based spending

3. Greater Focus on Services

With rising income levels, household expenditure on services has increased.

The new series includes:

• OTT subions
• Healthcare services
• Education fees
• Transport services
• Communication services

4. Inclusion of Online Prices

Given the growth of e-commerce: Prices from online platforms (e.g., air tickets, subions) are now incorporated.

5. Introduction of Rural House Rent

For the first time:

• Rural housing rent is included in CPI.
• This improves representation of rural housing consumption.

6. Official Administrative Price Data

For certain regulated items, official government data is used directly:

• Rail fares
• Postal charges
• Petrol & diesel
• LPG

This enhances accuracy and consistency.

7. Digital Price Collection

• Field officers now use tablets instead of paper schedules.
• Improves timeliness, data accuracy and monitoring.

8. Detailed Monthly Dissemination

CPI data is now available:

• All-India
• State-wise
• Rural and Urban separately

This strengthens regional inflation analysis.

Importance of CPI

• Monetary Policy Anchor
  • Retail inflation targeting framework is based on CPI.
  • Guides RBI’s monetary policy decisions.
• Indexation
  • Used for Dearness Allowance (DA) revision.
  • Impacts wage negotiations.
• Macroeconomic Assessment
  • Reflects purchasing power.
  • Indicates cost-of-living trends.

In News:

Bangladesh and the United States have signed a reciprocal trade agreement, informally termed the “Cotton for Zero-Tariff” deal. The agreement provides Bangladesh a quota-based zero-duty advantage in the US market, conditional on the use of US-produced cotton and man-made fibre (MMF) inputs.

The development has raised concerns in India’s textile and cotton sectors due to possible erosion of tariff advantages and potential displacement of Indian cotton exports to Bangladesh.

Key Highlights of the US–Bangladesh Trade Deal

1. Tariff Adjustment

• Bangladesh’s general reciprocal tariff reduced from 20% to 19%.
• Earlier, India faced an 18% tariff in the US market, giving it a narrow edge over Bangladesh (20%).

2. Zero-Tariff Quota Mechanism

• A specified volume of Bangladeshi textile and apparel exports can enter the US at 0% duty.
• This zero-duty benefit is conditional on the use of US-produced cotton and MMF inputs (Rules of Origin clause).

3. Bangladesh’s Reciprocal Commitments

Bangladesh has agreed to:

• Purchase USD 3.5 billion worth of US agricultural products (wheat, soy, cotton, corn).
• Import USD 15 billion of US energy products over 15 years.
• Open its market further to US industrial goods.

Implications for India

According to the Confederation of Indian Textile Industry (CITI), the agreement presents a two-fold challenge:

1. Erosion of Tariff Advantage in the US Market

• Earlier scenario:
  • India: 18% tariff
  • Bangladesh: 20% tariff → India had a 2% edge.
• After the deal:
  • Bangladesh: 19% (general rate)
  • Zero-duty for quota-based exports

This narrows India’s advantage to just 1% under general tariff and creates an 18% disadvantage for zero-duty Bangladeshi exports.

Competitive Context

• Bangladesh is the world’s 2nd-largest apparel exporter (after China).
• India ranks 6th globally.
• US is a major export destination for both.

Indian textile hubs such as:

• Tiruppur (Tamil Nadu)
• Surat (Gujarat)

operate on thin margins. Large global retailers may shift sourcing to Bangladesh to benefit from the zero-duty window.

2. Threat to Indian Cotton Exports

Bangladesh has traditionally been:

• The largest buyer of Indian raw cotton.
• Accounts for nearly 70% of India’s cotton exports.

In 2024:

• India exported USD 1.6 billion worth of cotton yarn to Bangladesh.
• About USD 85 million of MMF yarn.

Impact Mechanism

To access zero-tariff entry into the US:

• Bangladeshi manufacturers must use US-produced cotton.
• This incentivizes a shift away from Indian cotton imports.

Potential consequences:

• Decline in Indian cotton exports.
• Domestic surplus (glut).
• Price depression affecting Indian cotton farmers.

Broader Structural Concerns

1. Cotton vs MMF Imbalance

• Global textile trade composition:
  • 70% Man-Made Fibres (MMF)
  • 30% Cotton
• India’s exports remain largely cotton-dominated.

Higher taxation on MMF raw materials compared to finished goods has historically weakened India’s competitiveness in synthetics.

Strategic Responses for India

1. Seek “Cotton Parity” with the US

India imported 4.13 million bales of cotton in 2024–25, with the US as the top supplier.

India could:

• Negotiate a “Cotton Clause” granting zero-duty access for garments made from US cotton.
• Fast-track a comprehensive India–US Bilateral Trade Agreement (BTA).

2. ESG-Based Branding

Western buyers prioritise:

• Ethical sourcing
• Labour rights compliance
• Fire and factory safety

India can leverage:

• Stronger social compliance record
• Sustainable production practices
• Zero child labour positioning

to attract premium buyers.

3. GST Rationalisation for MMF

The GST Council could:

• Rationalise taxation across the MMF value chain.
• Make Indian polyester and viscose competitive against Bangladesh, China, and Vietnam.

4. Kasturi Cotton Bharat Initiative

The “Kasturi Cotton Bharat” initiative:

• Uses blockchain for traceability.
• Certifies cotton as contamination-free and ethically grown.
• Helps command premium pricing to offset tariff disadvantages.

5. Focus on Technical Textiles

Shift towards high-value segments where quality outweighs tariff gaps:

• Meditech (surgical implants, sanitary textiles)
• Mobiltech (airbags, seatbelts)
• Geotech (road and soil stabilization fabrics)

Domestic procurement guarantees can help firms scale up.

6. Market Diversification

Reduce dependence on the US market by:

• Leveraging FTAs with Australia and UAE.
• Expanding into Latin American and emerging markets.

In News:

The phenomenon of bacterial communication, known as quorum sensing, has emerged as a promising frontier in microbiology and medicine. Instead of killing bacteria outright, as antibiotics do, scientists are exploring ways to disrupt their communication systems, thereby weakening their ability to cause disease. This strategy, called anti-quorum sensing therapy, may become a crucial tool in tackling antimicrobial resistance.

What is Quorum Sensing?

Quorum sensing is a mechanism by which bacteria regulate gene expression according to their population density using chemical signalling molecules.

It enables bacterial populations to:

• Communicate with one another
• Coordinate collective behaviour
• Activate specific genes only when sufficient numbers are present

This coordination ensures that certain biological processes occur only when they are effective at large population sizes.

Historical Background

The phenomenon was first observed in the mid-1960s by Alexander Tomasz, who studied how Pneumococcus (later known as Streptococcus pneumoniae) takes up free DNA from its surroundings.

Modern understanding of quorum sensing has been significantly advanced by Bonnie Bassler of Princeton University, who described bacteria as “multilingual” organisms capable of chemical communication across species.

How Does Quorum Sensing Work?

A standard quorum-sensing system consists of:

1. Bacterial population
2. Signal molecules (Autoinducers)
3. Response genes

Step-by-Step Mechanism

1. Bacteria secrete signalling molecules called autoinducers into their environment.
2. As the bacterial population grows, the concentration of autoinducers increases.
3. When a threshold concentration is reached, bacteria detect these molecules.
4. This triggers activation of specific genes that regulate group behaviours.

Behaviours Regulated by Quorum Sensing

Quorum sensing controls several crucial biological processes:

• Virulence (disease-causing ability)
• Biofilm formation (protective bacterial communities)
• Horizontal gene transfer
• Competence (ability to take up external DNA)
• Symbiotic interactions
• Cell growth regulation

Since many of these activities require coordinated mass action, quorum sensing acts as a population-based decision-making system.

Examples of Quorum Sensing in Action

1. Pathogenic Bacteria

• Pseudomonas aeruginosa: Regulates mechanisms causing pneumonia and bloodstream infections.
• Vibrio cholerae: Causes cholera; quorum sensing influences its virulence and disease progression.

2. Bioluminescent Symbiosis

• Vibrio fischeri: Produces blue light through quorum sensing. Lives in one-to-one symbiosis with certain squids, helping camouflage them in ocean waters.

3. Nitrogen Fixation

• Rhizobium leguminosarum: Uses quorum sensing in symbiotic nitrogen fixation in leguminous plants.

Why is Quorum Sensing a Game-Changer for Medicine?

1. Alternative to Antibiotics

Traditional antibiotics:

• Kill bacteria or stop their growth
• Create strong evolutionary pressure → antimicrobial resistance

Anti-quorum sensing therapies:

• Disrupt communication
• Prevent coordination of virulence
• Reduce pathogenicity without killing bacteria

This approach may slow the emergence of drug resistance.

2. Targeting Biofilms

Biofilms protect bacteria from antibiotics and immune responses. Interrupting quorum sensing can prevent biofilm formation, making infections easier to treat.

3. Applications Beyond Medicine

• Agriculture – Improved plant-microbe interactions
• Environment – Waste treatment and bioremediation
• Human Health – Gut microbiome regulation

Bacteria in the human gut aid digestion and nutrient absorption, showing that quorum sensing also plays a role in beneficial processes.

In News:

The Prime Minister highlighted the importance of CCUS in decarbonising India’s heavy industries by sharing an article titled “Carbon capture can power India’s next steel revolution” authored by the Union Minister of Steel. Simultaneously, the Union Budget 2026–27 earmarked ?20,000 crore for a dedicated CCUS scheme, signalling a shift from pilot research to commercial deployment.

What is CCUS?

According to the International Energy Agency, Carbon Capture, Utilization and Storage (CCUS) refers to a set of technologies that capture carbon dioxide (CO?) from:

• Large industrial sources (power plants, steel, cement, refineries), or
• Directly from the atmosphere (Direct Air Capture).

The captured CO? is compressed and transported for either utilization or permanent geological storage.

The Three-Step Process

1. Capture: CO? is separated from other gases using:

• Chemical solvents
• Membranes
• Solid sorbents

2. Transport: Compressed CO? is transported through:

• Pipelines
• Ships
• Road tankers

3. Utilization or Storage

• Utilization (CCU): Conversion into urea, methanol, synthetic fuels, chemicals, building materials, or use in Enhanced Oil Recovery (EOR).
• Storage (CCS): Injection into deep geological formations such as depleted oil and gas fields or saline aquifers for long-term sequestration.

Why is CCUS crucial for India?

1. Decarbonising ‘Hard-to-Abate’ Sectors

Industries like steel and cement emit CO? due to chemical processes (e.g., calcination of limestone), not merely fuel combustion. CCUS is currently the only scalable solution to reduce such intrinsic emissions without shutting down production.

2. Powering India’s Steel Expansion

• India is the world’s second-largest crude steel producer (after China).
• Production: ~152 million tonnes (FY 2024–25).
• Under the National Steel Policy 2017, targets:
  • 300 MT capacity by FY 2030–31
  • 500 MT by 2047 (Viksit Bharat vision)
• Steel accounts for 10–12% of India’s total greenhouse gas emissions.

While hydrogen-based steelmaking is the long-term solution, CCUS acts as a bridge technology, enabling “Low-Carbon Steel” using existing plants.

3. Enhancing Energy Security

India derives 55–60% of its primary energy from coal. Immediate fossil fuel phase-out is economically disruptive. CCUS allows continued coal usage with reduced emissions during transition.

4. Circular Economy & Industrial Value Addition

Captured CO? can be:

• Converted to methanol (clean fuel)
• Used in Enhanced Oil Recovery (EOR)
• Converted into green urea or building materials

Thus, emissions become economic resources.

5. Safeguarding Exports from Carbon Taxes

Global trade is increasingly climate-regulated under mechanisms like the European Union Carbon Border Adjustment Mechanism (CBAM).

Low-carbon steel:

• Reduces export vulnerability
• Attracts climate-aligned investments
• Prevents “stranded assets” in India’s relatively young steel plants

6. Alignment with Global Commitments

CCUS supports:

• Paris Agreement (limit warming to 1.5–2°C)
• Sustainable Development Goals (Climate Action, Affordable & Clean Energy, Industry & Innovation)

India’s Key Initiatives on CCUS

1. Budgetary Push (2026–27)

• ?20,000 crore over five years
• Target sectors: Power, Steel, Cement, Refineries, Chemicals

2. NITI Aayog Policy Framework

• Proposed Viability Gap Funding (VGF)
• Development of CCUS hubs in industrial clusters (e.g., Gujarat, Odisha)
• Shared pipeline and storage infrastructure

3. Green Steel Taxonomy

Steel with emissions <2.2 tCO?e per tonne of crude steel qualifies as “Green Steel” (3–5 star ratings), incentivising adoption of CCUS and avoiding carbon taxes.

4. R&D and Institutional Support

National Centres of Excellence (NCoE-CCU)

• IIT Bombay
• Jawaharlal Nehru Centre for Advanced Scientific Research

DST Roadmap

• Pilot phase: 2025–30
• Commercial scale-up: 2035–45

Mission Innovation Challenge (2018)

• Joint initiative of DST & DBT
• Collaboration with 24 countries
• Focus on breakthrough capture and utilization technologies

In News:

The Assam Rifles, India’s oldest paramilitary force, has initiated the induction of two indigenous dog breeds—Tangkhul Hui (Haofa) from Manipur and Kombai from Tamil Nadu into its dog squads. The move aligns with the 2025 directive of the Ministry of Home Affairs (MHA) encouraging greater adoption of Indian canine breeds in armed forces.

This initiative aims to reduce long-term dependence on foreign breeds such as Belgian Malinois, German Shepherd, and Labrador, with full operational induction of indigenous breeds targeted by 2027 and gradual replacement of foreign breeds by 2050.

Assam Rifles:

• Established in 1835 as the Cachar Levy.
• India’s oldest paramilitary force.
• Functions under dual control:
  • Administrative: Ministry of Home Affairs
  • Operational: Ministry of Defence
• Primary roles:
  • Counter-insurgency in the Northeast
  • Guarding the Indo-Myanmar border
• Operates the Assam Rifles Dog Training Centre (ARDTC), Jorhat, its sole canine training facility.

Role of Dog Squads

Dogs are trained for:

• Trackers – Follow human/animal trails in difficult terrain.
• Guard dogs – Secure camps, convoys, and border posts.
• Detection dogs – Identify hidden arms, explosives, and narcotics.

They are particularly deployed in sensitive regions like the Northeast and Jammu & Kashmir.

Tangkhul Hui (Haofa)

Origin

• Native to Ukhrul district, Manipur
• Raised traditionally by the Tangkhul tribe
• Originally developed as a hunting companion (sighthound)

Key Features

• Large, strong body; deep chest and powerful jaws
• Usually black with white markings
• Erect ears and alert expression
• Highly disease-resistant
• Strong stamina (more endurance than speed)
• Intelligent and protective

Current Status

• Part of a pilot project since 2022
• Six dogs already trained and deployed in narcotics detection
• Purebred population is declining, making it relatively rare

Kombai (Polygar Dog)

Origin

• Indigenous to Kombai region, Theni district, Tamil Nadu
• Also known as:
  • Polygar Dog
  • Indian Bore Hound
  • Combai

Historical Use

• Guarding property
• Hunting wild boar and large game
• Used by South Indian royalty and warriors
• Employed in regional military contexts historically

Key Characteristics

• Muscular, athletic build
• Broad head, deep chest, strong limbs
• Short, smooth reddish-brown coat
• Distinct black mask-like muzzle
• Loyal, protective, highly defensive
• Hardy and disease-resistant

Induction Plan

• First batch (2 males, 8 females) scheduled for induction in April 2026
• Full integration expected by March 2027