Daily Current Affairs (DCA) 12 April, 2025

Daily Current Affairs Quiz
12 April, 2025

International Affairs

1. China Ups Tariffs to 125% in Retaliation to U.S. Duties

Context:

China has intensified its trade retaliation against the Trump administration by raising tariffs on U.S. imports to 125%, following Washington’s hike to 145%. Even amid the economic standoff, Beijing signaled a measured willingness to re-engage in dialogue, though it issued a sharp warning against continued provocation.

Key Developments

• Escalation of Tariff Measures:
  • China’s latest move raises the tariff war stakes, matching the U.S.’s aggressive posture with a significant increase in levies.
  • The 125% tariff hike reflects China’s strategic tit-for-tat approach in response to the 145% duties from the U.S.
• China’s Strong Message:
  • The Customs Tariff Commission condemned further U.S. tariffs as economically irrational and unsustainable.
  • It warned that such actions would become a “joke in world economic history” due to their long-term impracticality.
• Limits of Tariff Viability:
  • Beijing highlighted that the current tariff levels have already made U.S. goods unviable in the Chinese market.
  • Any further increases, it said, would be met with non-response, signaling a shift from reactive policy to strategic disengagement.
• Firm but Conditional Stance:
  • China asserted that if Washington continues to harm its economic interests, it will respond with firm countermeasures.
  • However, the tone also leaves the door open for potential reconciliation and dialogue.

Strategic Implications: This development underscores the deepening rift in U.S.-China trade relations, while hinting at Beijing’s readiness to pivot toward negotiation—but only if met with mutual respect and economic reason.

TH

2. Bridging Gender and Climate Gaps

Context:

Thirty years after the adoption of the Beijing Declaration and Platform for Action, India has made significant legal and policy strides in promoting gender equality. However, the dual crises of climate change and migration are now threatening to undo progress—particularly for rural women and girls. A didi from Kanker, Chhattisgarh, poignantly sums it up: “This generation was supposed to do better.”

Gender and Climate

• Climate-Induced Gender Vulnerability:
  • Women and girls, especially in rural India, are disproportionately affected by climate change.
  • Climate stressors such as extreme heat, droughts, and resource scarcity deepen existing gender inequalities, leading to health issues, migration, and even school dropouts.
• Health and Livelihood Impacts:
  • Anaemia affects over 50% of pregnant women in India, worsened by food insecurity.
  • Climate change is linked to increased intimate partner violence—rising 8% with each degree Celsius.
  • Non-farm livelihoods, where many women are employed, face up to 33% income losses due to climate disruptions.
• Underrepresented in Policy and Finance:
  • Just 6% of climate policies mention women; only 1% consider the poor.
  • Climate budgets often result in greenwashing or use women as conduits rather than decision-makers.

Women as Climate Leaders

• Adaptation and Resilience:
  • Women preserve traditional climate-resilient practices and play key roles in sustainable agriculture.
  • Women-led collectives are often first responders in climate disasters and essential to ecosystem protection.
  • Rural women prioritize issues such as forest-based livelihoods, migration, and safety from conflict.

Strategic Recommendations

• Policy Enhancements:
  • Strengthen the gender-climate link in the Beijing India Report 2024.
  • Implement gender-responsive climate action and robust data systems to track gendered impacts.
  • Ensure that NAPCC and SAPCC plans reach grassroots communities, emphasizing women’s participation.
• Inclusive Climate Financing:
  • Promote gender-audited climate budgets that empower rather than exploit.
  • Encourage private sector investment in women-led green enterprises and climate technology access.
  • Expand green funds for women-driven innovations in climate resilience and mitigation.
• Community Empowerment:
  • Establish climate support hubs for disaster response, health, safety, and migration risk awareness.
  • Host inclusive climate consultations and support women’s leadership in energy, agriculture, and governance.
  • Prioritize non-farm livelihoods and skill-building to mitigate climate-linked job losses in agriculture.
• Multi-Stakeholder Collaboration:
  • Foster partnerships across government, civil society, private sector, and academia.
  • Focus on knowledge sharing, capacity-building, and recognition of women champions in climate resilience.

India stands at a critical intersection of climate action and gender justice. To secure a sustainable and equitable future, gender must be at the heart of every climate decision—from budgeting and infrastructure to grassroots leadership and international advocacy.

3. India-Italy Relations

Context:

Antonio Tajani, Italy’s Deputy Prime Minister and Foreign Minister, condemned trade wars, calling them detrimental to global commerce. He welcomed President Trump’s 90-day pause on tariffs, urging for constructive dialogue between the U.S. and the EU. Emphasized the need for transatlantic unity despite disagreements, such as those over Greenland or tariffs.

India-EU Bilateral Trade and Investment Agreement (BTIA)

• Tajani expressed optimism about finalizing the long-pending EU-India BTIA by the end of the year.
• Acknowledged historical delays but noted strong political momentum and trust built through recent high-level engagements, including EU Commission President Ursula von der Leyen’s visit.
• On market access concerns (like wine, spirits, agriculture), Tajani said every deal is unique, implying the EU is not seeking parity with India-U.S. terms, but rather a mutually beneficial agreement.

Growing India-Italy Bilateral Trade

• At a business summit in New Delhi, Tajani, along with S. Jaishankar and Piyush Goyal, discussed expanding current bilateral trade (valued at $14 billion).
• Italy is keen on enhancing cooperation in sectors such as manufacturing, digital infrastructure, and green innovation.

IMEC (India-Middle East-Europe Corridor) and Peace in West Asia

• Tajani admitted that IMEC’s potential is hindered by instability among Israel, Saudi Arabia, the UAE, and Jordan.
• However, he positioned the IMEC project as a driver of regional peace and connectivity.
• Italy is offering Trieste Port as a central hub in the corridor — part of the broader “Cotton Road” vision to boost Europe-Asia-Middle East trade routes.

Infrastructure, Investment, and the Global Gateway

• Tajani announced the appointment of a Special Envoy to develop port, rail, and digital infrastructure under the EU’s Global Gateway initiative.
• A Ministerial meeting is being planned in Italy with all IMEC participants to foster cooperation and progress on corridor goals.

TH

4. The UN’s International Maritime Organization (IMO)

Context:

The UN’s International Maritime Organization (IMO) has approved the first legally binding international framework to cut greenhouse gas (GHG) emissions from global shipping—marking a milestone in the fight against climate change.

Overview of the IMO Climate Agreement

• Finalized: After week-long negotiations in London
• Goal: Net-zero GHG emissions from shipping by or around 2050 (aligned with the 2023 Revised IMO Strategy)
• Key Components:
  • A technical and economic framework to drive decarbonization
  • A global carbon pricing mechanism to hold polluters accountable
  • Official implementation from 2028, pending final approval in October 2025

Voting Breakdown and Global Support

• Vote requested by: Saudi Arabia (a rare move in IMO procedures)
• Outcome:
  • 63 in favor
  • 16 against
  • 25 abstentions
• Supporting countries:
  India, Brazil, Japan, UK, China, Spain, Norway, Mexico, France
• Opposing countries:
  Saudi Arabia, UAE, Oman, Venezuela, Russia
• Abstentions:
  Pacific Island nations (e.g., Kiribati, Tuvalu, Fiji), Seychelles, Argentina, Colombia
• Notable perspective:
  Brazil emphasized the decision as a triumph of multilateralism amid global tensions

Climate and Economic Impact

• Current shipping emissions: ~3% of global GHG emissions
• Projected reductions:
  • Only 8% by 2030, according to maritime consultancy UMAS
  • Falls short of the IMO’s 20–30% reduction target by 2030

Critical Reactions & Concerns

• WWF called the decision a “groundbreaking moment” but warned it may be inadequate to meet the 1.5°C Paris goal
• Mark Lutes (WWF):
  Urged acceleration in emission cuts and investment in sustainable fuels
• LNG concerns:
  Initial penalties on fossil LNG will increase over time, jeopardizing LNG ship investments
• Revenue potential:
  $30–40 billion by 2030, expected to support clean shipping initiatives

Pacific Island States’ Dissent

• Advocated: A flat carbon levy to ensure equitable funding
• Criticisms:
  • Revenue deemed insufficient for a just transition
  • Lack of transparency, equity, and inclusion
• Tuvalu’s Position:
  Called for stronger energy incentives, inclusion of vulnerable nations’ voices, and a fair transition to green shipping

TET

National Affairs

1. India Cautions Against Rushed Trade Deal with US

Key Highlights:

India Refuses to Negotiate Trade Deal Under Pressure

• Commerce Minister Piyush Goyal firmly stated that India will not conclude the India-US Bilateral Trade Agreement (BTA) under external pressure, emphasizing:
  “We do not negotiate at gunpoint.”
• He acknowledged that time constraints can fast-track discussions, but stressed that India will prioritize protecting national interests over meeting arbitrary deadlines.

Interim Trade Deal Possible Within 90 Days

• A senior government official noted that India and the US are exploring an interim trade deal, focusing mainly on tariff issues, within the 90-day pause period on reciprocal tariffs imposed by the Trump administration.
• However, both sides are looking for a “win-win” outcome before finalizing the agreement.

Emphasis on Fair Trade Practices

• Goyal highlighted that India’s tariff protections are mainly aimed at non-market economies that engage in unfair trade practices.
• He stated India is open to bilateral partnerships rooted in reciprocity, trust, and fair play, indirectly signaling alignment with like-minded economies.

India-US Trade Talks Gain Momentum

• External Affairs Minister S. Jaishankar, speaking at the 9th Global Technology Summit, affirmed a “high degree of urgency” from both India and the US to conclude the trade pact.
• He remarked that President Trump’s evolving global trade posture has impacted negotiations significantly and needs adaptive engagement.

BS

2. India’s E-Waste Management

Context:

India is the third-largest generator of e-waste globally, following China and the US. However, only 43% of the country’s e-waste was recycled in the past year. The government is attempting to tackle the e-waste issue by formalizing the recycling sector and encouraging investment in sustainable waste management practices.

New Recycling Pricing Rules

• In September, the Indian government introduced a floor price for the amount manufacturers must pay recyclers. The aim is to formalize recycling efforts and reduce informal, hazardous recycling methods.
• However, these new rules have faced backlash from global electronics manufacturers, such as Daikin, Hitachi, and Samsung, who argue the cost of compliance is too high.

Manufacturer Pushback and Legal Challenges

• Companies like Daikin, Hitachi, and Samsung argue that the new pricing rules, which have tripled recycling costs, will negatively affect their businesses. They have filed lawsuits against the government in a bid to reverse the regulations.
• The manufacturers contend that the rules are unconstitutional, overstep the government’s powers, and would result in higher product prices due to increased compliance costs.

The E-Waste Problem in India

• E-waste recycling in India is primarily handled by informal scrap dealers, who often use unsafe and environmentally damaging methods.
• The government’s aim is to address this issue by pushing for formalized e-waste management, though the new pricing rules are causing significant friction with industry players.

Mint

3. Development vs. Environment

Context:

India is one of the most polluted nations and among the most vulnerable to climate change. While global factors contribute, the crisis is also self-inflicted. The ongoing battle over the Kancha Gachibowli forest in Telangana highlights this dual responsibility.

The Forest Under Threat

• Location: Adjacent to the University of Hyderabad (UoH), Hyderabad
• Issue: Telangana’s Congress government proposed auctioning 400 acres of forest land to build an IT park
• Backlash: Widespread protests by students and environmental activists; Supreme Court intervened with a stay on further development
• Current Status: CM Revanth Reddy is now proposing an eco-park alternative

Why Kancha Gachibowli Matters

• Ecological Treasure:
  • 220+ species of birds
  • 734 species of flowering plants
  • 15 species of reptiles
  • 10 species of mammals
  • Rare species: star tortoises, wild boars, billed pelicans
  • Some rock formations are older than dinosaurs (e.g., Mushroom Rock)
• Water Sustainability:
  • Hosts Peacock Lake, Buffalo Lake, and natural ponds
  • Helps maintain the groundwater table in West Hyderabad
  • Even a 14% loss in green cover can severely impact water retention

Student-Led Environmental Activism

• Protesters include UoH students, 80% of whom are from outside Telangana
• No personal stake in land or university development
• Purely driven by environmental concern and public interest

The Telangana Green Model

• Initiative: Telangana Ku Haritha Haram (2015)
  • Planted over 273 crore saplings
  • Forest cover outside recorded zones grew 45.8% between 2015 and 2021
• Green Governance:
  • Mandated 10% ‘Green Budget’ in local governance under new municipal and panchayat acts
  • Urban forest parks via Pattana Pragathi and Bruhat Vanams
  • Creation of nurseries in every village
• Result:
  • Telangana’s GSDP rose from ₹5.05 lakh crore (2014–15) to ₹13.13 lakh crore (2022–23)
  • Economic growth was achieved without compromising environmental integrity

TET

4. Air Pollution Turning Rainfall More Acidic in Several Indian Cities

Context:

Conducted over 34 years (1987–2021) by IMD and Indian Institute of Tropical Meteorology (IITM). Tracked rainwater chemistry at 10 Global Atmosphere Watch stations across India.

Notable locations: Visakhapatnam, Prayagraj, Mohanbari, Srinagar, Jodhpur, Pune, Nagpur, Kodaikanal, Minicoy, Port Blair.

Key Findings:

• Consistent Decrease in Rainwater pH:
  • Indicates increasing acidity, especially in urban-industrial regions.
  • pH values below 5.65 classify rainfall as acidic.
• Cities with Rising Acidic Rainfall:
  • Visakhapatnam: Attributed to emissions from oil refineries, power plants, fertilizer units, and shipping yards.
  • Prayagraj and Mohanbari: Similarly show marked decline in rainwater pH levels.
• Natural Neutralisers in Decline:
  • Calcium particles, which help counteract acidity, are decreasing in Prayagraj, Jodhpur, and Nagpur.
  • Although ammonium levels are rising in some areas, they aren’t sufficient to offset the acidic trend.

• Pollutant Sources:
  • Nitrate compounds—main contributor to acidic rain—are increasing.
  • Emission sources include:
    • Vehicle exhaust
    • Industrial activities
    • Burning of crop residue
    • Household pollutants
• Regional Contrasts:
  • Jodhpur and Srinagar see less acidity due to natural dust (e.g., from Thar Desert) which helps neutralize acid content.
• Conclusion:
  • Urbanisation and industrial expansion are altering rainwater composition.
  • The natural buffering capacity of rain is weakening, raising long-term concerns for ecosystems, agriculture, and public health.

TOI

5. Kavach 5.0

Context:

Union Railway Minister Ashwini Vaishnaw unveiled Kavach 5.0, the upgraded Automatic Train Protection (ATP) system, aimed specifically at improving Mumbai’s suburban rail network.

• Objective:
  • Increase local train frequency by 30% by reducing the current 180-second interval between trains.
  • Enables more services and comfortable travel for the city’s nearly 80 lakh daily commuters.
• Technology Features:
  • Kavach system helps ensure train safety by automatically applying brakes if loco pilots fail to do so.
  • Assists in maintaining speed limits, especially in bad weather conditions.

Implementation & Timeline

• Three-Pronged Execution Plan:
  • Infrastructure Development
    • Projects worth ₹17,000 crore already underway.
  • Deployment of Advanced Technology (Kavach 5.0)
  • Introduction of Better Trains and Services
• Projected Benefit:
  • With Kavach 5.0, the frequency and capacity of trains can be increased by up to 30%, significantly easing congestion.

The Indian Express

6. Gaurav Long-Range Glide Bomb

Context:

DRDO Conducts Successful Release Trials of ‘Gaurav’ Long-Range Glide Bomb.

About the Gaurav Glide Bomb

• What is Gaurav?
  • A precision-guided long-range glide bomb designed to strike land targets from stand-off distances, keeping the launch aircraft outside enemy air defense coverage.
• Developer:
  • Developed by DRDO, in collaboration with:
    • Armament Research and Development Establishment (ARDE)
    • Research Centre Imarat (RCI)
    • Integrated Test Range (ITR)

Key Features & Capabilities

• Range:
  • 30 km to 150 km (recent test demonstrated ~100 km range)
• Weight Variants:
  • Gaurav (Winged version): 1,000 kg
  • Gautham (Non-winged version): 550 kg
• Navigation & Guidance:
  • Uses Inertial Navigation System (INS)
  • Integrated with satellite-based guidance and digital flight control

Strategic Significance for India

• Enhances IAF’s Stand-off Strike Capability:
  • Allows fighter jets to strike deep into enemy territory without entering hostile airspace.
• Increases Pilot Safety:
  • Reduces the risk to aircraft and crew by launching bombs from safe distances.
• Boosts Indigenous Defence Production:
  • Strengthens India’s self-reliance in smart and precision-guided munitions.
  • Aligns with the ‘Atmanirbhar Bharat’ defence strategy.
• Modern Warfare Ready:
  • Aids in precision targeting, a critical element in network-centric and limited collateral damage warfare.

7. Punjab Government Bans Hybrid Paddy Seed Sales

Context:

The Punjab government has banned the sale of hybrid paddy seeds (non-Basmati varieties), citing:

• High seed prices.
• Lower out turn ratio (OTR) during rice milling, leading to economic losses for farmers and millers.

Hybrid Paddy Seeds

Hybrid paddy seeds are developed by crossbreeding two different rice varieties to create a new variety with improved traits like higher yield, water efficiency, and early maturity. They are typically non-Basmati varieties and are used for commercial high-yield rice farming. Hybrid seeds are produced through controlled pollination between a male sterile line and a pollen parent. 

Why Do Farmers in Punjab Prefer Hybrid Paddy Seeds?

• Popular Hybrid Varieties:
  Includes Sava 127, Sava 134, 27P22, VNR 203, and others from firms like Savannah, VNR, Corteva, and Bayer.
• Key Benefits Claimed by Farmers:
  • Higher Yields: 35–40 quintals per acre (5–6 quintals more than traditional).
  • Shorter Crop Duration: 125–130 days, saving water and enabling crop rotation.
  • Reduced Stubble: Supports stubble management.
  • Higher Earnings: Additional income of ₹13,000–₹14,000 per acre.

Why Did the Punjab Government Impose the Ban?

• Issue with Rice Millers:
  • Millers refused to accept hybrid varieties during 2024–25 Kharif procurement.
  • Claimed low OTR (60–63%) vs. FCI standard of 67%, resulting in milling losses.
• Government’s Concern:
  • Lower OTR leads to lower returns for farmers.
  • Past resistance from millers forced the state to intervene and negotiate.
  • To avoid repetition, a pre-emptive ban was enforced.
• Lack of Clarity:
  • The ban does not specify if it applies to officially notified varieties, creating ambiguity.

While the Punjab government aims to protect farmer income and milling standards, the blanket ban on hybrid paddy seeds has triggered pushback from farmers and seed industry experts. They emphasize that systemic inefficiencies, not the seeds themselves, are to blame for milling issues. Clearer guidelines and modernization of milling practices may offer a more balanced solution than outright bans.

8. India’s Semiconductor Design Ecosystem

Design-Linked Incentive (DLI) Scheme

• The Indian government is actively working on 25 chipset designs with intellectual property (IP) ownership retained in India.
• Targeted applications include high-risk domains such as surveillance cameras and WiFi access points, which are vulnerable to cybersecurity threats.
• Currently, 13 chipset projects are underway under the DLI scheme, with several making notable progress.
• The Centre for Development of Advanced Computing (CDAC), Bengaluru, serves as the nodal agency.

Security and Product Innovation Through Indigenous IP

• Having domestic IP rights ensures greater cybersecurity and transforms India from a services nation to a product-based economy.
• These chipsets can be manufactured in the upcoming semiconductor fabrication units (fabs) currently being developed in India.

Ecosystem Development

• Over 240 colleges and institutions have been provided access to world-class semiconductor design software tools to foster a design-led education ecosystem.
• 20 student-designed chips will soon be taped at the SemiConductor Laboratory, Mohali, validating the effectiveness of the program.
• This initiative is expected to nurture 85,000 chip design engineers over the next 10 years.

End-to-End Chip Design Capability in India

• Indian engineers have reached a level where they can handle complete chip design cycles, from concept to final design.
• This builds confidence among youth and opens avenues for semiconductor-focused tech startups in the country.

Vision for 2030

• The semiconductor and AI mission is progressing rapidly with the aim of achieving a $500 billion electronics production target by 2030.
• The focus is on localisation, innovation, and building a globally competitive electronics and chip manufacturing ecosystem.

BS

9. AIKosh

Context:

The Indian government plans to include texts, images, and narratives from religious scriptures across multiple languages such as Hindi, English, Tamil, Telugu, Kannada, Urdu, and others into the AIKosh database. Inputs will also include local dialects, oral storytelling traditions, and inspirational word-of-mouth narratives, seen as valuable for training AI and large language models (LLMs).

Purpose Behind Including Religious and Cultural Texts

• Religious texts are viewed as repositories of ancient wisdom and contextual knowledge, potentially enriching AI model training with deeply rooted ethical, philosophical, and linguistic insights.
• This approach aims to improve accuracy, cultural alignment, and contextual depth of Indian AI applications and LLMs.

Integration of Government Data

• The Ministry of Electronics and Information Technology (MeitY) has signed an MoU with the Lok Sabha Secretariat to use a rich dataset of:
  • Parliament questions and answers
  • Government reports
  • Committee meeting documents
  • Ministry-wise agendas
• These will be integrated into AIKosh to support transparent and accountable AI systems rooted in public governance data.

Current Status and Scale

• As of April 9, AIKosh hosts 350+ datasets and supports nearly 150 AI models, including both Large Language Models (LLMs) and Small Language Models (SLMs).
• The initiative is part of the ₹10,372 crore India AI Mission, specifically its India Datasets Platform, one of the mission’s seven core pillars.

Budget and Forward Planning

• In the 2025-26 Union Budget, ₹200 crore was allocated to the AIKosh initiative.
• The platform may also draw from non-personal, anonymized datasets from across various ministries and the Open Governance Data Platform.

AIKosh Platform’s Data Use and Monetisation Policy Clarified

Key Points:

• The AIKosh platform will not allow monetisation of datasets, whether by the government or private sector, as confirmed by an official.
• Minister of State for Electronics and Information Technology, Jitin Prasada, clarified in Parliament that the primary objective of the AIKosh and India datasets platform is to provide access to non-personal public and private sector data for developing AI applications, not for monetisation.

Data Protection and Compliance

• The platform follows stringent data protection standards to ensure the security and confidentiality of user data.
• It adheres to Indian laws, including the Information Technology Act, 2000 and the Data Protection Bill.
• The AIKosh platform does not involve data purchases or subscriptions in any form.

BS

10. PM Modi Inaugurates Projects Worth ₹3,880 Crore in Varanasi

Key Highlights:

• Prime Minister Narendra Modi inaugurated and laid the foundation stone for 44 projects in Varanasi, totaling ₹3,880 crore.
• Projects Focus:
  • Rural development initiatives, including 130 drinking water projects and 100 new anganwadi centres.
  • Infrastructure development such as 356 libraries, a polytechnic college in Pindra, and a government degree college.
  • Other inaugurations included a transit hostel at the police lines, police barracks in Ramnagar, and four rural roads.

BS

Science & Tech

1. Colossal Biosciences and the Ethics of De-Extinction

Context:

Colossal Biosciences, a U.S.-based biotechnology company, is making headlines for its ambitious attempt to resurrect extinct species using gene-editing technology. Led by Harvard geneticist George Church, the company’s flagship project involves reviving the woolly mammoth with the stated goal of combating climate change through ecosystem restoration in the Arctic tundra.

Key Scientific Developments

• De-extinction through Genomics:
  • The company has extracted ancient mammoth DNA from fossils and used CRISPR-based gene editing to modify elephant DNA to express mammoth-like traits.
  • The long-term goal is to create a mammoth-elephant hybrid embryo and use a surrogate elephant for gestation.
• Climate Justification:
  • Advocates argue that woolly mammoths could help restore Pleistocene grasslands, which would reflect more sunlight, absorb less heat, and limit methane emissions from thawing permafrost.
  • Siberian experiments using cold-resistant animals show partial success in rewilding efforts.
• Expansion to Other Species:
  • Colossal has also attempted to revive the dire wolf, birthing three edited snow-white wolves. However, only 20 genes were altered, leading to criticism that the result is not an authentic revival but a genetically modified variant.

Ethical and Scientific Critique:

• Lack of Peer Review and Scientific Credibility:
  • The dire wolf claims lack rigorous peer validation and are viewed skeptically by the broader scientific community.
  • Critics argue that these are cosmetic changes, not true de-extinctions.
• Resource Allocation Concerns:
  • Conservationists warn that investing millions in speculative, long-term projects diverts attention and funding from the urgent crisis of contemporary species extinction caused by deforestation, urbanization, and habitat destruction.
  • Thousands of extant species face immediate threats, yet receive far less support.
• Call for Regulation:
  • The article underscores the need for strict guidelines governing the use of gene-editing technologies for non-medical purposes.
  • The case of He Jiankui—the Chinese scientist who controversially edited human embryos—is cited as a cautionary example of unregulated scientific ambition.

What Colossal Did: The Science Behind It

Species involved:

• Dire wolf (Aenocyon dirus): Extinct ~11,000 years ago
• Gray wolf (Canis lupus): Closest living relative

Key scientific steps:

• Ancient DNA analysis: From a 13,000-year-old tooth and a 72,000-year-old ear bone
• CRISPR-Cas9 gene editing: 14 targeted edits made to gray wolf DNA
• Embryo creation: Modified cells used to create embryos
• Surrogate mothers: 45 embryos implanted into two domestic dogs
• Successful births: Romulus and Remus (first), followed by Khaleesi

Result:
Pups are 99.5% gray wolf DNA, but display visual traits of dire wolves—white coats, large muscular bodies, stronger jaws.

While Colossal Biosciences’ work represents a leap in genome engineering and synthetic biology, its claims of aiding conservation through de-extinction are seen as scientifically weak and ethically questionable.

Banking/Finance

1. Equity Mutual Fund Inflows Dip 14.4% in March

Context:

Net inflows into equity mutual fund schemes declined 14.4% to ₹25,082 crore in March 2025, compared to ₹29,303 crore in February. This marks the third consecutive monthly decline, reflecting growing investor caution amid global economic uncertainties. Equity inflows have remained negative for half of FY 2024-25, highlighting a slowdown in retail investment momentum.

Equity

In finance, equity generally refers to ownership in a company or an asset, often represented by shares or stock. It also represents the value of an asset after deducting all associated debts. In simpler terms, it’s the amount of money an owner would get if they sold an asset and paid off all associated debts. 

Sectoral and Thematic Funds Hit Hardest

• The most notable dip was in sectoral and thematic funds, with net inflows falling by 97% to just ₹170 crore in March.
• This is the steepest decline for this category since June 2023, attributed to profit booking and volatility in niche sectors.

SIP Accounts and Contributions Also Decline

• The number of active SIP (Systematic Investment Plan) accounts dropped to 8.11 crore, down from 8.26 crore in February — the third straight month of decline.
• SIP contributions also saw a minor dip, falling to ₹25,926 crore in March from ₹26,000 crore in February.

2. Impact of RBI’s Draft Guidelines on Gold Loans

Context:

The Reserve Bank of India’s (RBI) draft guidelines on gold loans are expected to have a greater impact on non-banking financial companies (NBFCs) and mid-tier banks compared to larger banks. Larger banks may not face significant challenges as many already follow similar norms. However, NBFCs will need to adapt to these stricter regulations, which may result in slower growth in the near term.

Proposed Changes in Loan-to-Value (LTV) Ratio

• The Loan-to-Value (LTV) ratio for gold-backed loans is proposed to remain capped at 75%.
  • However, for bullet repayment loans, the LTV will be computed based on the total payment, including interest.
  • NBFCs will have an LTV cap for both consumption and income-generation loans. This will affect how the loan principal is calculated in relation to the value of gold at the time of disbursement.
  • Analysts suggest that this could result in a lower effective LTV due to the buffers needed for gold price fluctuations and interest payments, potentially making gold loans more expensive for borrowers.

The Loan-to-Value (LTV) ratio

The Loan-to-Value (LTV) ratio is a financial metric that calculates the percentage of a property’s value that is being financed through a loan. It’s determined by dividing the loan amount by the property’s appraised value or purchase price (whichever is lower), and is expressed as a percentage. A lower LTV ratio generally indicates less risk for the lender, while a higher LTV ratio may suggest higher lending risk. 

End-Use Monitoring and Classification

• The RBI has proposed stricter end-use monitoring for gold loans, requiring clear classification between consumption and income-generation loans.
  • Restrictions on how income-generation loans are classified could reduce demand for such loans, particularly in sectors where growth opportunities are limited.
  • There will also be sectoral exposure limits and provisioning requirements for any breaches in the LTV ratio.

Increased Compliance Costs

• As per analysts, while these guidelines are intended to harmonize industry standards, they will likely tighten the lending process, particularly in terms of valuations, compliance, and credit appraisal.
• NBFCs will face additional compliance costs, which could result in slower growth and potentially higher interest rates to offset the increased cost of doing business.

Potential Interest Rate Increases

• In response to these regulatory changes, gold loan financiers, especially NBFCs, may be forced to raise interest rates.
  • However, the intense competition in the sector from established players and new entrants (like Cholamandalam, L&T Finance, and Poonawalla Fincorp) could limit the extent of any interest rate hikes, as maintaining competitive rates will remain crucial for market share.

Impact on Borrowers and Demand

• The stricter LTV caps and classification rules may affect demand, particularly for income-generation loans, as the constraints on gold collateral become more stringent.
• Potential borrowers could face higher costs and lower loan eligibility, especially if they are seeking loans for consumption purposes, which could reduce their ability to use gold as collateral for immediate financial needs.

BS

3. IRDAI Warns Heritage TPA for Breach of Claim Norms

Context:

The Insurance Regulatory and Development Authority of India (IRDAI) has warned Heritage TPA for unilaterally closing health claims and communicating claim denials directly to policyholders a violation of regulatory norms.

What is Breach of Claim Norms?

A breach of claim norms by an insurer or broker, according to IRDAI, can include exceeding claim consultancy limits, expressing fees as a percentage of the claim, or failing to adhere to regulatory guidelines for claim settlement. Insurer negligence in claim settlement timelines, or failing to adequately explain deductions from claim amounts, also constitute breaches, as outlined in IRDAI regulations. 

What the Regulator Said:

• Only insurers are authorized to communicate claim decisions (approvals or rejections).
• TPAs must not influence claim outcomes or send repudiation letters to customers.
• Heritage TPA was found to have closed claims without forwarding query letters from insurers or sending reminder letters to policyholders.

Regulatory Requirement:

• As per IRDAI norms, TPAs must:
  • Issue deficiency letters if documentation is incomplete.
  • Send up to three reminders (each seven days apart) if documents are not submitted.
• Heritage TPA failed to comply with this process, according to a remote inspection conducted by IRDAI in November 2021.

Implication

• The warning reinforces that claim settlement communication is solely the insurer’s responsibility.
• TPAs acting beyond their mandate can face regulatory consequences.

BS

4. SEBI Plans Regulatory Overhaul for ‘Optimal Compliance’

Context:

Tuhin Kanta Pandey, the newly appointed chairman of the Securities and Exchange Board of India (SEBI), has outlined plans for a significant regulatory revamp aimed at easing compliance burdens and making financial norms more relevant to today’s market environment.

Key Announcements and Strategic Priorities

Shift Toward “Optimal Regulation”

• SEBI aims to reduce micromanagement and embrace principle-based regulation.
• The objective is to modernize and rationalize outdated norms to suit current market dynamics.

Regulatory Collaboration

• Active discussions underway with the Reserve Bank of India (RBI) and the Department of Economic Affairs (DEA).
• The goal: streamline foreign investment rules and improve ease of doing business for overseas investors.

FPI-FDI Fungibility in Focus

• SEBI, RBI, and DEA are exploring fungibility between Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI).
• Requires changes in Foreign Exchange Management Act (FEMA) rules.
• This could enhance flexibility and attract long-term foreign capital.

Direct Access for Foreign Individuals

• The proposal to allow foreign individuals to invest directly in Indian equities is under consideration.
• Aimed at broadening the base of overseas participation in Indian markets.

Other Highlights

Futures and Options (F&O) Market Regulation

• SEBI has defended recent measures aimed at curbing excessive speculation in the derivatives segment.
• The focus remains on maintaining market integrity and investor protection.

Mutual Fund Fees – No Immediate Change

• SEBI is not currently revisiting the plan to reduce the Total Expense Ratio (TER) charged by mutual funds.
• Suggests a cautious, consultative approach to investor cost reforms.

NSE IPO Clearance

• The long-delayed NSE initial public offering (IPO) could be greenlit, pending “satisfactory resolution” of regulatory and governance concerns.

SEBI’s regulatory roadmap under Chairman Pandey signals a more facilitative and investor-friendly framework, especially for foreign players. By emphasizing modernization, simplification, and regulatory coordination, SEBI is aiming to make Indian capital markets more accessible and globally competitive.

TET

5. RBI Announces Liquidity Support Measures Amid GST Outflows

Context:

The Reserve Bank of India (RBI) has unveiled fresh steps to maintain surplus liquidity in the banking system, aiming to facilitate faster monetary policy transmission and buffer against temporary liquidity pressures such as GST outflows.

Liquidity Operations Announced

• Open Market Operation (OMO):
  • RBI will purchase government securities worth ₹40,000 crore
  • Auction scheduled for April 17
• Variable Rate Repo (VRR):
  • ₹1.5 lakh crore liquidity injection for 43 days, reversing on May 30
  • Also scheduled for April 17
• Additional OMOs:
  • RBI will conduct ₹20,000 crore OMO purchases each on April 22 and April 29

Objective: Maintain Liquidity Surplus at 1% of NDTL

• Target Surplus: RBI aims for system liquidity to be around 1% of Net Demand and Time Liabilities (NDTL), equivalent to a ₹2 lakh crore surplus
• Why Now:
  • Seasonal GST outflows around the 20th of each month often cause a liquidity crunch
  • April has so far seen an average daily surplus of ₹1.7 lakh crore, a major rebound from the ₹3 lakh crore deficit in January

RBI’s Policy Transmission Focus

• RBI Governor Sanjay Malhotra reiterated the importance of liquidity in aiding interest rate transmission
  • “We are watchful and provide sufficient liquidity so that this transmission of policy rates into the interest rate happens quickly.”
• Economists say RBI is acting pre-emptively to ensure borrowing costs align with repo rate movements

TET

6. Sebi’s High-Level Committee for Conflict of Interest and Disclosure Framework

• Committee’s Mandate:
  • Review and enhance conflict of interest provisions and disclosures related to property, investments, and liabilities for Sebi board members and senior officials.
  • Ensure transparency, ethical conduct, and accountability within the regulatory body.
  • Submit recommendations within three months.
• Committee Composition:
  • Chairperson: Pratyush Sinha, former chief vigilance commissioner.
  • Members include Injeti Srinivas (former corporate affairs secretary) and Uday Kotak (founder of Kotak Mahindra Bank).
• Key Areas of Review:
  • Existing Policies: Analyze current conflict of interest and disclosure regulations, identifying gaps or ambiguities.
  • Recommendations:
    • Stronger conflict of interest management framework.
    • Recusal policies and detailed public disclosure requirements.
    • Restrictions on investments, digital record maintenance, and monitoring frameworks.
    • A system for public complaints and transparency on the examination of such concerns.
• Prompting Factors:
  • The committee was formed after allegations involving former Sebi chairperson Madhabi Puri Buch, who was accused by Hindenburg Research of holding undisclosed offshore stakes linked to the Adani Group. Though the allegations were denied and unproven, they raised concerns about Sebi’s transparency standards.
• Sebi’s Focus on Transparency:
  • New Sebi Chairperson Tuhin Kanta Pandey, who assumed office in March, made transparency a top priority and emphasized clear guidelines on disclosures, recusals, and public communication.
• Expected Outcomes:
  • Experts suggest a robust framework should balance incentivizing transparency while enabling unbiased decision-making.
  • A holistic perspective, with input from experts in vigilance, corporate affairs, banking, regulation, and auditing, is crucial to strengthening Sebi’s governance standards.

The SEBI (Securities and Exchange Board of India) Disclosure Framework

The SEBI (Securities and Exchange Board of India) Disclosure Framework encompasses a set of rules and regulations aimed at ensuring transparency and protecting investors by mandating timely and accurate disclosure of material information by listed companies and other market participants. These regulations cover various aspects, including listing obligations, insider trading, and continuous disclosure requirements. 

Mint

7. Sebi Warns Against Rising Securities Market Frauds on Social Media Platforms

• Key Announcement:
  • Sebi has issued a public warning about increasing fraudulent securities market activities on social media platforms (SMPs).
  • Investors are urged to report suspicious activity at: https://mi.sebi.gov.in
• Modus Operandi of Fraudsters:
  • Fraudsters pose as educational content creators offering trading tips.
  • Use of fake testimonials and unrealistic claims of risk-free or guaranteed returns.
  • Promotion of unauthorised investment advisory services by impersonating Sebi-registered entities or showing fake registration certificates.
• Common Fraud Tactics:
  • Floating fake trading platforms mimicking those of licensed intermediaries.
  • Guaranteeing fixed returns, which is prohibited under Sebi regulations.
  • Disseminating misleading content to lure individuals into private chat groups for further deception.
• Sebi Guidelines:
  • Only Sebi-registered intermediaries are allowed to provide investment advice.
  • No entity is permitted to guarantee returns in the securities market.
• Investor Advisory:
  • Be cautious of offers that promise quick or guaranteed profits.
  • Always verify the credentials of investment advisors or platforms through official Sebi sources.
  • Report fraudulent activities directly on Sebi’s market intelligence portal.

TOI

8. Piramal Finance Partners with ICICI Bank to Boost Credit Access in Rural and Semi-Urban India

Context:

Piramal Finance Limited, a leading NBFC, has announced a strategic co-lending partnership with ICICI Bank to enhance access to credit for middle and low-income borrowers, particularly across semi-urban and rural India. The alliance focuses on Home Loans and Loans Against Property (LAP), supporting financial inclusion and driving equitable economic development.

Key Highlights of the Partnership

Objective

• To deepen formal credit penetration in Tier 2 and Tier 3 cities.
• Facilitate affordable mortgage solutions for MSMEs and individual borrowers.

Strategic Advantages

• Combines Piramal Finance’s ‘High Tech + High Touch’ approach with ICICI Bank’s banking expertise.
• Leverages Piramal’s extensive rural network:
  • 510+ branches
  • Coverage across 13,000+ PIN codes
  • Presence in 26 states
  • Over 4.5 million customers

Implications for India’s Credit Ecosystem

• Increased affordability and reach of mortgage financing in underserved regions.
• Supports economic growth through formalised lending to small businesses and self-employed individuals.
• Aligns with national objectives of:
  • Financial inclusion
  • Rural empowerment
  • Housing for All

About Piramal Finance Limited

• A wholly owned subsidiary of Piramal Enterprises Ltd., Piramal Finance is a major NBFC serving underserved Bharat markets.
• Retail lending focus:
  • Home Loans
  • Loans Against Property
  • Used Car Loans
  • Small Business Loans
• 1.3 million+ active customers (as of Dec 2024)

About ICICI Bank

• One of India’s top private banks, listed on BSE, NSE, and NYSE.
• Total assets of ₹20.13 lakh crore (as of December 31, 2024).
• Strong presence in retail and corporate banking.

Economy

1. India’s Industrial Production Growth Slows in February 2025

Context:

Industrial production in February 2025 slowed to 2.9%, marking a six-month low. This decline came as a result of a high base effect and lackluster demand. In February 2024, industrial production had grown by 5.6%, boosted by the leap year, while January 2025 saw a growth of 5.2%.

Key Sector Performance

• Mining: Growth in mining output slowed to 1.6%.
• Manufacturing: Manufacturing growth decelerated to 2.9%.
• Electricity Generation: Electricity output grew at a relatively quicker pace, registering a 3.6% increase in February.

Use-Based Classification Breakdown

• Capital Goods: Showed strong growth at 8.3%, indicating robust demand.
• Infrastructure Goods: Growth was also healthy at 6.6%.
• Primary Goods: Growth decelerated to 2.8%.
• Intermediate Goods: Growth slowed further to 1.5%.

Consumer Goods Performance

• Consumer Durables: Output rose by 3.8%.
• Consumer Non-Durables: Continued to decline, contracting by 2.1% for the third consecutive month.

Rural vs. Urban Demand

• Rural demand continues to improve, supported by robust agricultural production and expectations of a normal monsoon. The easing of food inflation is also helping consumption recovery.
• However, urban demand remains a concern, with weaker demand from urban sectors despite improvements in rural areas.

Economic Outlook and Concerns

• Economists are wary of a potential growth slowdown in FY 2025-26, particularly due to ongoing global uncertainties like the tariff war.
• Moody’s Analytics revised its India GDP growth forecast for 2025 downward to 6.1%, anticipating negative impacts on industries like gems & jewellery, medical devices, and textiles due to the ongoing tariff threats from the US.
• Despite these challenges, economists believe that the RBI’s rate cut and easing inflationary pressures will provide some support to industrial growth.

BS

2. India’s Path to Tripling Automotive Component Exports by 2030

Vision for Growth in Automotive Exports

• India aims to triple its automotive components exports to $60 billion in the next five years, positioning itself as a global leader in the sector.
• Achieving this goal would result in a trade surplus of nearly $25 billion and increase India’s share in the global automotive components value chain from 3% to 8%.
• The growth is expected to create 22.5 million new jobs, bringing the total direct employment in the sector to 34 million.

Policy Recommendations for Achieving Growth

• Strategic and Focused Policy Initiatives: The NITI Aayog report stresses the need for high-value automotive manufacturing and strong policy support.
• Production Support Scheme: The scheme would include:
  • Operating expenditure support for scaling up manufacturing of specific components.
  • Capital expenditure support for tools and dies required in manufacturing.
• Non-Fiscal Interventions: These include:
  • Business improvement support to enhance global competitiveness.
  • Promotion of joint ventures and free trade agreements (FTAs) to foster international collaborations.
  • Adoption of Industry 4.0 technologies to improve manufacturing efficiency.
  • Implementation of enhanced quality standards to meet global demands.

Focus on Research & Development (R&D)

• The report emphasizes the need for a vibrant R&D ecosystem in the auto components sector.
  • Strategic R&D support with financial incentives across product categories is recommended.
  • Building globally competitive Indian auto component manufacturers requires continuous innovation through R&D.

Encouraging Skilled Workforce and Global Talent

• To support innovation, India should implement incentives for skilled foreign nationals to come to India, alongside initiatives to retain highly skilled Indians.
  • The NITI Aayog suggests offering incentives similar to China’s Thousand Talents Program, such as:
    • Right to purchase residence for foreigners.
    • Streamlined visa processes.
    • Guaranteed long-term employment opportunities.

Fiscal Support and Reassessing Returns from Government Schemes

• NITI Aayog noted the ongoing support from various government schemes, including:
  • FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles).
  • PM EDRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement).
  • Production-linked incentive (PLI) for auto components.
• Suman Bery, NITI Aayog Vice-Chairman, stressed the importance of reflecting on the returns from these schemes, ensuring that India receives a reasonable tax return flow within a reasonable timeframe.

Addressing Competition and Localisation

• While localisation remains crucial, the report advocates for a balance with competition to drive innovation.
• India must rethink its competition policy to stay at the frontier of the automotive sector.
• Local champions of the automotive industry should not be shielded indefinitely; instead, policies should encourage competition and innovation.

BS

Facts To Remember

1. Vaidehi, Shrivalli ensure a third victory for India

Lulu Sun and Monique Barry ensured qualification for New Zealand as they won their singles matches against Thailand, for the team’s fourth straight victory in as many matches, in the Asia-Oceania Billie Jean King Cup women’s tennis championship at the Balewadi Stadium. 

2. UPI transactions are being declined partially due to some intermittent technical issues, says NPCI

National Payments Corporation of India (NPCI) has said that Unified Payment Interface-UPI transactions are being declined partially due to some intermittent technical issues.

3. Tennis: India defeats Chinese Taipei 2-1 in Billie Jean King Cup Asia-Oceania Group -1

In Tennis, India defeated Chinese Taipei 2-1 in the Billie Jean King Cup Asia-Oceania Group 1 in Pune. Shrivalli Bhamidipaty and Vaidehi Chaudhari, helped Team India take a significant stride towards their quest for the playoff spot. 

4. Tree Man of Telangana, Padma Shri D. Ramaiah passes away

Padma Shri D. Ramaiah, popularly known as the Tree Man of Telangana, passed away this morning in his native village, Reddy Palli, in Khammam district, Telangana. 

5. 8th Meeting of Joint Committee on ASEAN-India Trade in Goods Agreement concludes

The 8th Meeting of Joint Committee on ASEAN-India Trade in Goods Agreement (AITIGA), which was hosted by India, concluded yesterday. 

6. Shooting: India finishes second in overall standings in first leg of ISSF World Cup

In the first leg of the International Shooting Sport Federation (ISSF) World Cup 2025 at Buenos Aires, Argentina, India finished second in the standings behind China. India won a total of 8 medals, including 4 gold, 2 silver and 2 bronze.

7. WAVES Summit 2025: Winners of Theme Music Competition announced

The Information and Broadcasting Ministry has announced the winners of the Theme Music Competition, one of the 32 challenges being held as part of the WAVES Summit 2025. The first World Audio and Video Entertainment Summit (WAVES 2025) is scheduled to be held in Mumbai from 1st to 4th May this year.

8. Mauritius becomes first African country to sign ISA’s Country Partnership Framework

Mauritius has become the first African country to sign a Country Partnership Framework (CPF) with the International Solar Alliance (ISA). It is also the fourth country globally, after Bangladesh, Bhutan, and Cuba, to sign the CPF.