Daily Current Affairs (DCA) 21 & 22 April, 2025

Daily Current Affairs Quiz
21 & 22 April, 2025

International Affairs

1. WHO Finalizes Draft of Pandemic Agreement for Equitable Response

Context:

After 13 rounds of negotiations over three-and-a-half years, the WHO’s Intergovernmental Negotiating Body finalized the draft WHO Pandemic Agreement on April 16, 2025. The draft will be presented for formal adoption at the upcoming World Health Assembly in May 2025.

Scope and Significance:

• While less ambitious than the original proposal, the agreement is hailed as a “generational accord to make the world safer.”
• It marks a significant consensus amid divergent interests between developed nations and the Global South.

Equity in Pathogen Sharing and Benefits:

• A major breakthrough was the agreement on a Pathogen Access and Benefit Sharing (PABS) system:
  • Developing nations will share pathogen samples and genome sequences.
  • In return, they are guaranteed equitable access to diagnostics, treatments, and vaccines developed from those materials.

Commitment to Health Workers and Technology Transfer:

• The first article all countries agreed upon was improved protection for healthcare workers.
• Technology transfer will occur under “mutually agreed terms” rather than the voluntary basis preferred by pharmaceutical companies.

Role of Pharmaceutical Companies:

• Pharma firms will:
  • Donate 10% of their production to WHO.
  • Sell another 10% at affordable prices to low- and middle-income countries.
• This is a direct response to vaccine hoarding witnessed during the COVID-19 pandemic.

Historical and Political Context

• Echoes past tensions like Indonesia’s protest over H5N1 sample sharing in the 2000s.
• Developed countries were reluctant to commit to tech-sharing; developing countries sought guarantees for access in return for pathogen data.

Treaty’s Strategic Focus Areas (as per Nature):

• Equitable access to health products.
• Encouraging technology and know-how exchange.
• Supporting self-sufficiency in vaccine production for developing countries.

TH

2. India Tackles $40 Billion Trade Surplus with the US

Context:

India’s trade surplus with the US has been a key concern for the Trump administration. In FY25, the surplus reached $41.18 billion (up from $35.33 billion in FY24). The surplus is a crucial issue in discussions for a Bilateral Trade Agreement (BTA).

Government’s Strategy to Address Surplus

• India is exploring strategies to narrow its trade surplus by increasing imports from the US.
• This move aims to address concerns raised by the US administration about its growing trade deficit with India.

Upcoming Trade Negotiations

• BTA negotiations are set to begin in Washington later this month.
• A team led by Rajesh Agarwal, India’s chief negotiator, will hold three days of discussions with US officials starting April 23.
• The negotiations will cover 19 chapters, including goods, services, customs facilitation, and regulatory issues.

Key Developments

• US Vice President JD Vance will visit India, focusing on economy, trade, and diplomacy.
• Finance Minister Nirmala Sitharaman is also visiting the US for the World Bank/IMF meetings and G20 discussions.
• At these events, discussions will be held with US Treasury Secretary Scott Bessent on tariffs and trade talks.

Impact of US Tariffs

• Trump’s tariffs have posed a challenge for many countries, including India, with potential ripple effects on global markets.
• The US trade deficit has been a primary focus of Trump’s tariff policies, which India aims to address by recalibrating trade flows.

India’s Trade Deficit

• India’s overall trade deficit stands at $282 billion, which provides some flexibility in shifting the source of imports to the US without major disruption.

Trade Surplus Data (India’s Exports to US)

• FY22: $32.86 billion
• FY23: $27.68 billion
• FY24: $35.33 billion
• FY25 (Projected): $41.18 billion

BS

National Affairs

1. Vice-President’s Remarks on Judiciary

Context:

Vice-President Jagdeep Dhankhar, at a recent public event, raised important concerns related to judicial independence, procedural transparency, and judicial overreach. His speech reignited the national debate on separation of powers, judicial accountability, and the scope of constitutional powers in a parliamentary democracy.

Key Issues Raised by the Vice-President:

• Opaque Inquiry into Judicial Misconduct:
  • Criticized the lack of a clear legal framework governing internal judicial inquiries, particularly referencing an incident involving cash recovered from a High Court judge’s residence.
  • Called for a legally sound and transparent mechanism, ideally framed by Parliament.
• Supreme Court’s Mandamus to High Constitutional Offices:
  • Objected to the SC’s recent judgment prescribing timelines for President and Governors to act on Bills passed by State Assemblies.
  • Questioned whether the judiciary can issue writs to constitutional heads, potentially infringing on the doctrine of separation of powers.
• Judicial Review vs. Public Accountability:
  • Expressed concern over judiciary’s lack of accountability to the electorate, unlike the legislature and executive.
  • Suggested revisiting Article 145(3) which requires five judges for Constitution Benches, considering the current SC strength (34 judges) as opposed to 8 in 1950.
• Use of Article 142 – Judicial Overreach?
  • Criticized the expansive use of Article 142 by the SC to “do complete justice”, claiming it risks undermining representative democracy.

In Support of the Vice-President’s Concerns

• The lack of transparency in internal judicial investigations is a legitimate concern. A formal, codified process will help restore public faith.
• The collegium system for judicial appointments has faced consistent criticism for being non-transparent and insular.
• A revamped National Judicial Appointments Commission (NJAC)—with a CJI veto—could offer a balanced solution, merging transparency with independence.

Against the Concerns

• The Supreme Court’s judgment mandating action timelines for the President and Governors is constitutionally sound, grounded in precedent and a 2016 Home Ministry guideline.
• Article 142 has advanced social justice and corrected executive inertia:
  • Bhopal Gas Tragedy Compensation (1989)
  • Vishakha Guidelines (1997)
  • Coal Block Cancellation (2014)
  • Permanent Commission for Women in Armed Forces (2024)
  • Demolition Accountability Orders (2024)
• Article 145(3)’s current threshold of five judges ensures careful constitutional adjudication, and increasing this number may not solve the problem of pendency.

Judicial Review and Constitutional Balance

• India’s system is a hybrid of British Parliamentary Sovereignty and American Judicial Supremacy.
• The Supreme Court’s power of judicial review has been declared a basic feature of the Constitution, essential for maintaining constitutional supremacy over majoritarian impulses.
• While the executive and legislature are accountable to the public, the judiciary safeguards the Constitution and must operate with institutional independence.
• A healthy separation of powers, not confrontation, is crucial for sustaining constitutional democracy.

TH

2. India Successfully Conducts Second Satellite Docking

Context:

India’s space agency ISRO achieved a significant milestone by successfully conducting the second docking of two satellites under the Space Docking Experiment (SpaDeX). This marks a major step toward India’s ambitions in long-duration space missions and human spaceflight programs.

Key Events and Timeline

• Launch Date: 30 December 2024 (via PSLV-C60 / SpaDeX mission)
• First Docking: 16 January 2025 at 06:20 AM
• Undocking: 13 March 2025 at 09:20 AM
• Second Docking: Announced on 21 April 2025
• Upcoming Activities: Further experiments scheduled within the next two weeks

Satellites Involved:

• SDX01 (Chaser)
• SDX02 (Target)
  These satellites demonstrate autonomous rendezvous, docking, and undocking capabilities in low-Earth orbit.

Global Significance: With this success, India becomes the fourth country — after the U.S., Russia, and China — to demonstrate satellite docking in space.

Technological Significance

• Critical Capabilities Demonstrated:
  • Autonomous approach and docking
  • Secure undocking and re-docking
  • Power transfer between docked spacecraft
  • Enhanced control of spacecraft composites
• Future Applications:
  • Human spaceflight (e.g., Gaganyaan, crewed lunar missions)
  • In-space assembly and maintenance
  • Space station operations
  • Sample return missions from planetary bodies

TH

3. 15th BRICS Agriculture

Context:

Social, economic, and political empowerment of small and marginal farmers especially women as central to global agricultural strategies.

Key Highlights:

• BRICS Land Restoration Partnership Launched:
  • Aimed at tackling land degradation, desertification, and loss of soil fertility across member nations.
• Joint Declaration:
  • BRICS countries collectively committed to making the global agri-food system fair, inclusive, innovative, and sustainable.
• India’s Standpoint:
  • Emphasized the need to strengthen the role of 510 million smallholder farmers, who are vital to global food systems yet highly vulnerable to climate change, price volatility, and resource scarcity.

What is Sustainable Agriculture?

Sustainable agriculture includes eco-friendly and resource-efficient farming practices that:

• Meet current food needs without compromising future generations
• Preserve water, soil health, and biodiversity
• Minimize dependence on synthetic chemicals and promote climate resilience

Why India Needs Sustainable Agriculture

• Rainfall Dependency:
  • ~60% of India’s cultivable land depends on monsoon rains
• Price Volatility:
  • Farmers often sell produce at lower prices due to lack of storage and market linkage
• Post-Harvest Losses & Low Mechanization:
  • Limited infrastructure and value addition opportunities reduce profitability
• Limited Access to Finance:
  • Smallholders struggle to access credit, insurance, and other financial tools

Key Government Initiatives for Sustainable Farming

• Farmer Producer Organisations (FPOs):
  • Aggregating produce, improving market access, and facilitating technology adoption
• Warehouse Receipt Financing:
  • Enables farmers to store crops and sell later at better prices
• National Mission for Sustainable Agriculture (NMSA):
  • Promotes water-use efficiency, soil health, and climate-smart farming
• NICRA (National Innovations on Climate Resilient Agriculture):
  • Focuses on climate-resilient technology, research, and capacity building
• Promotion of Bio-Fertilizers:
  • Reducing chemical use and enhancing soil microbial life

What is BRICS?

• Members: Brazil, Russia, India, China, South Africa
• Origin: Coined by economist Jim O’Neill in 2001 as a term for major emerging economies
• Formal Summits: Held annually since 2009
• New Members (2023–24): Argentina, Ethiopia, Egypt, Iran, Saudi Arabia, UAE

The 15th BRICS Agriculture Ministers’ Meeting marks a crucial global step toward transforming food systems into being farmer-centric, resilient, and environmentally sound.
India reaffirmed its vision of agriculture-led inclusive growth, with smallholder empowerment and sustainability at the core of future policymaking.

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Science & Tech

1. India Nears Stage-II of Nuclear Power Programme

Context:

India’s nuclear energy programme is set to enter a transformative phase as the Prototype Fast Breeder Reactor (PFBR) at Kalpakkam, Tamil Nadu, nears commissioning. According to the Department of Atomic Energy (DAE), the PFBR is expected to achieve first criticality by 2025-26 and full commissioning by September 2026.

This development signals the beginning of Stage-II of India’s three-stage nuclear programme aimed at recycling spent fuel and enhancing energy sustainability.

Key Features of the PFBR

• Capacity: 500 MW
• Fuel: Plutonium-based Mixed Oxide (MOX)
• Coolant: Liquid Sodium
• Developer: Bharatiya Nabhikiya Vidyut Nigam (BHAVINI)
• Core loading commenced in March 2024, witnessed by Prime Minister Narendra Modi

The PFBR will utilise spent fuel from Pressurised Heavy Water Reactors (PHWRs) and breed more fissile material than it consumes—crucial for India’s long-term goal of using thorium-based reactors in Stage-III.

Regulatory Milestones

• In July 2023, the Atomic Energy Regulatory Board (AERB) approved:
  • Fuel loading
  • First approach to criticality
  • Low-power physics experiments

This approval was a key step toward operational readiness and safe commissioning.

India’s Nuclear Roadmap

Current Installed Capacity:

• 8.18 GW from operational nuclear reactors

Upcoming Additions:

• 7.30 GW under construction/commissioning
• 7.00 GW in pre-project stage
• Future Target by 2031-32: 22.48 GW

Long-term Goal:

• 55 GW by leveraging:
  • 15.40 GW from indigenous PHWRs
  • 17.60 GW from Light Water Reactors (via foreign cooperation)
  • 3.80 GW from Fast Breeder Reactors (BHAVINI)
  • Remainder through Small Modular Reactors and Bharat Small Reactors with private sector partnerships

Strategic Significance

• Second Stage Launch: PFBRs play a pivotal role in India’s closed nuclear fuel cycle strategy
• Energy Security: Reduces dependence on imported uranium
• Clean Energy Push: Part of the government’s nuclear mission targeting 100 GW nuclear power
• Innovation & Self-Reliance: Indigenous design and engineering expertise showcased

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Banking/Finance

1. RBI Empowers Minors

Context:

The Reserve Bank of India (RBI) has introduced a progressive step toward financial empowerment of minors, allowing children aged 10 years and above to open and manage their own savings and term deposit accounts independently.

Key Provisions from RBI’s Circular

• Minors aged 10+ can now:
  • Open savings or term deposit accounts without guardian oversight.
  • Operate these accounts independently, including deposits, withdrawals, and checkbook use (as per bank discretion).
• Minors below 10 years of age:
  • Can open accounts through a natural or legal guardian.
  • Mothers may now act as guardians, expanding gender-sensitive banking policies.

Why This Matters

• Promotes early financial literacy: Encourages children to learn about money management, budgeting, and saving.
• Boosts financial inclusion: Especially impactful in semi-urban and rural regions where formal banking access remains limited.
• Supports Digital India and Jan Dhan goals: By integrating youth into formal financial systems.

Potential Use Cases:

• Monthly allowance savings
• Educational goal-based deposits
• Student-led savings clubs in schools
• Digital banking experience through UPI-linked accounts (if allowed)

This move reflects RBI’s forward-looking approach in nurturing a financially aware generation. It also paves the way for minors to gradually adopt digital payment tools under supervision, helping India transition into a more cashless and financially aware economy.

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2. India’s Fiscal Management and Debt

Context:

During her interaction with the Indian diaspora in San Francisco, Union Finance Minister Nirmala Sitharaman addressed key issues related to India’s fiscal deficit and debt management. She reassured that the government’s debt was being managed prudently and that there was no risk of the fiscal deficit going out of control.

Fiscal Deficit Management

• Sitharaman confirmed that the government’s fiscal deficit target for FY25 would be met at 4.8% of GDP, and in the following year (FY26), it would likely fall below 4.5% of GDP.
• Despite global uncertainties, including lowered FY26 growth projections, she stressed that the government was firmly on track to achieve these goals.

Debt Reduction Efforts

• The finance minister highlighted that India’s debt-to-GDP ratio has been successfully reduced from 62% of GDP post-COVID to 57.4% in four years.
• The government aims to bring this ratio closer to 50% by 2030, a level significantly lower than many developed countries, which have ratios exceeding 100% of GDP.
• These efforts demonstrate the government’s commitment to fiscal discipline and sustainable debt management.

Bilateral Trade Agreement with the US

• Sitharaman also discussed the ongoing negotiations for a Bilateral Trade Agreement (BTA) between India and the United States. The first phase of the agreement is expected to be signed by fall 2025.
• She emphasized India’s proactive engagement with the US administration, including high-level visits from Prime Minister Modi, Commerce and Trade Ministers, and herself.

India’s Global Leadership and Growth:

• Addressing India’s global leadership, Sitharaman highlighted the country’s progress in strategic sectors such as semiconductors, renewable energy, artificial intelligence (AI), and digital infrastructure.
• She noted that international institutions like the World Bank are recognizing India’s leadership, particularly in digital public infrastructure, AI skilling, and job creation.

Finance Minister Nirmala Sitharaman reassured stakeholders that India’s fiscal policies are on track, with clear goals for reducing the fiscal deficit and managing debt responsibly. Despite challenges, the government’s focus on maintaining fiscal discipline and pursuing strategic global partnerships will likely sustain India’s economic growth and strengthen its role on the world stage. The anticipated Bilateral Trade Agreement with the US is expected to further bolster bilateral relations and economic ties.

BS

3. RBI Finalises LCR Guidelines for Digitally Enabled Deposits

Context:

RBI issued final norms for computing Liquidity Coverage Ratio (LCR), effective from April 1, 2026. Aims to improve banks’ liquidity resilience in a non-disruptive manner and align with global standards.

Key Changes in Final LCR Norms

• Reduction in Run-Off Factors: The final norms ease the run-off factors for deposits, which are used to calculate the amount of liquidity a bank must set aside. The revised norms are seen as less stringent than the earlier proposals.
  • The run-off factor for retail and small business deposits that can be accessed through internet and mobile banking (IMB) has been set at 2.5%, significantly lower than the proposed 5% in the draft.
  • Stable retail deposits via IMB will now have a 7.5% run-off factor, while less stable deposits will have a 12.5% run-off factor. This is a slight increase from the draft norms, which had set these at 5% and 10%, respectively.
• Impact on Liquidity Reserves:
  • The easing of these requirements means that banks will need to reserve less liquidity compared to what would have been required under the draft guidelines. This change is expected to free up additional lending resources, supporting credit growth.
• Effect on Wholesale Funding:
  • The final guidelines have also restructured the treatment of wholesale funding from non-financial entities (like trusts and partnerships). The revised run-off rate for these funds is now 40%, down from the 100% proposed earlier.

Runoff Factor Changes for IMB-Linked Deposits

• Additional runoff factor for IMB-linked retail deposits set at 2.5% (down from proposed 5%)
• Stable IMB-linked deposits: 7.5% runoff factor (currently 5%)
• Less stable IMB-linked deposits: 12.5% runoff factor (currently 10%)
• Total runoff factor: 20% (up from current 15%)

Institutional Deposit Treatment

• Deposits from non-financial entities (trusts, partnerships, LLPs, etc.): 40% runoff factor (down from 100%)

Implications for the Banking Sector

• Banks had opposed higher runoff factors in the draft; final norms offer significant relief
• Estimated 6% improvement in LCR across the banking system as of December 31, 2024
• Estimated ₹3 trillion of lendable resources unlocked due to improved HQLA management
• Potential to support an additional 1.4–1.5% credit growth

Valuation of High-Quality Liquid Assets (HQLAs)

• Level 1 HQLA (mainly govt. securities) will be valued at market price
• Adjustments for applicable haircuts as per LAF and MSF guidelines

BS & TET

4. RBI Draft Direction on Export and Import of Goods and Services

Context:

The Reserve Bank of India (RBI) has issued a draft direction on the export and import of goods and services and the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2025. Stakeholders have been invited to submit their feedback by the end of this month.

Key Provisions of the Draft Direction

• Regulatory Framework:
  • The draft direction consolidates existing RBI regulations that authorised dealers (ADs) must adhere to, and specifies compliance with the Foreign Trade Policy and government guidelines related to export and import transactions.
  • ADs are required to send references to RBI through the PRAVAAH platform, which facilitates online applications for regulatory authorisations, licenses, and approvals.
• Internal Policy for ADs:
  • ADs must create an internal policy document for handling and reporting export and import transactions and addressing grievances within six months.
  • Compliance with the Export Data Processing and Monitoring System (EDPMS) and the Import Data Processing and Monitoring System (IDPMS) will continue.
• Transaction Guidelines:
  • The time limits for realisation of export proceeds, submission of documents to ADs after exports, and remittance for imports largely remain unchanged, with ADs empowered to grant extensions.
  • In the case of Merchanting Trade Transactions (MTT), the period between outward and inward remittance is raised to six months.
• Regulations for Exporters and Importers:
  • Exporters who fail to realise export proceeds within 24 months and have outstanding export amounts exceeding ₹25 crore will be allowed to export only against full advance or an irrevocable letter of credit.
  • Importers with unmaterialised advance payments exceeding ₹25 crore will not be allowed to remit further import advances unless it is against an irrevocable standby letter of credit or a bank guarantee.
• AD Discretion:
  • The RBI aims to provide flexibility to ADs, allowing them to exercise discretion in handling certain issues, such as extensions for realisation of export proceeds or import payments. However, this could result in inconsistent treatment of similar transactions across different ADs.
• Charges and Penalties:
  • The draft stipulates that ADs must levy reasonable charges for handling transactions but should not impose penalties for regulatory delays or violations.

Potential Concerns

• Enforcement of Regulations:
  • Some stakeholders may question whether leaving enforcement to the discretion of ADs is the most effective approach, as it could lead to inconsistent treatment of transactions.
• Export Incentives:
  • Exporters may welcome the fact that the draft regulations do not require the surrender of proportionate export incentives in the event of a shortfall in the realisation of export proceeds.
• Additional Requirements for SEZ Units and Service Providers:
  • Special Economic Zone (SEZ) units will be required to submit export declaration forms to the development commissioners, which may come as a surprise to many.
  • Service providers will need to submit a copy of every invoice to specified authorities, which may be seen as an additional compliance burden.

The RBI’s draft direction introduces a significant shift in the handling of export and import transactions by authorised dealers. While the increased flexibility could encourage businesses, there may be concerns over the potential inconsistency in enforcement and the administrative burden on SEZ units and service providers.

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5. RBI Draft Guidelines on Gold Loans

Context:

The Reserve Bank of India (RBI)‘s draft guidelines on gold loans may significantly raise compliance costs for banks and non-banking financial companies (NBFCs), according to banking officials and experts. The proposed guidelines are designed to standardize the processes involved in gold loans, but they come with a notable increase in operational complexity and costs.

Key Features of the Draft Guidelines

• Standardized Documentation Across All Branches:
  • Banks and NBFCs will be required to use uniform documentation for gold loan transactions across all their branches.
  • This standardization will include consistent methods for assaying the purity and weighing the gold collateral.
• Collection and Calculation Procedures:
  • Lenders must ensure that their collection and calculation methods are standardized to prevent deviations across different branches.
  • This includes uniform procedures for determining the purity of gold and the net weight of the collateral.
• Qualified Assayers:
  • Gold financiers will be required to appoint qualified assayers who must have no negative records. These assayers will be responsible for the valuation of the gold collateral at both the time of loan sanction and upon the return or auction of the collateral.
  • This will lead to higher costs due to the need for professional expertise.
• Credit Appraisal Mechanism:
  • In addition to the gold collateral evaluation, lenders will need to implement a credit appraisal mechanism to assess the borrower’s financial stability before issuing gold loans. This will add another layer of operational complexity, especially since gold loans are typically not based on income assessment.
• Loan-to-Value (LTV) Ratio:
  • The Loan-to-Value (LTV) ratio for gold loans will remain capped at 75%, which may limit the loan amount relative to the gold pledged, potentially impacting the growth of the gold loan market.

Impact on Operational Costs

• Experts estimate that the current cost of collection, documentation, and calculation for gold loans is about 2% of the loan value. If the guidelines are implemented in their current form, these costs could rise dramatically to 45%.
• The need for standardized procedures and qualified assayers is expected to increase compliance and operational costs, which could be particularly challenging for smaller players, especially in rural areas where income assessment is more difficult.

Challenges for NBFCs and Smaller Players

• Fitch Ratings has pointed out that the draft guidelines could lead to increased operational complexity, particularly for smaller NBFCs.
• Smaller financial institutions, especially those operating in rural areas, might find it difficult to meet the compliance requirements due to the higher costs and complexities involved in implementing the new rules.

Expert Opinions

• Anil Gupta, Group Head of Financial Sector Ratings at ICRA, emphasized that the new guidelines would lead to increased operational intensity and costs. The mandatory credit appraisal mechanism will require NBFCs to hire specialized professionals, adding to the operational burden.
• The draft guidelines might also restrict the growth of gold loans due to the LTV ratio cap and additional compliance costs, especially for smaller players in the sector.

While the RBI’s draft guidelines aim to bring more transparency and standardization to the gold loan sector, they could significantly raise compliance and operational costs for banks and NBFCs. Particularly for smaller players and those operating in rural markets, the implementation of these guidelines may pose challenges in terms of cost and operational complexity.

BS

6. Alternative Investment Funds (AIFs) Seek Relaxation on SEBI Certification Deadline

Context:

With the May 9 deadline fast approaching for Alternative Investment Funds (AIFs) to comply with Securities and Exchange Board of India (SEBI)‘s certification mandate for fund managers, industry stakeholders are pushing for relaxations. The core issue revolves around the National Institute of Securities Markets (NISM) Series XIX-C certification exam, which is proving to be a challenge for many fund managers, especially given its broad scope.

Key Points of the SEBI Certification Mandate

• As per SEBI’s regulations introduced in May 2024, at least one key member of an AIF’s investment team must pass the NISM Series XIX-C: Alternative Investment Fund Managers Certification Examination.
• This certification is mandatory for both existing AIF schemes (by the May 9, 2025 deadline) and for new AIF registration applications.
• The exam covers a broad range of topics across various AIF categories, including Category I, Category II, and Category III funds.

Challenges Faced by Fund Managers

• Wide Scope of the Exam: The exam covers all AIF categories, but many fund managers specialize in only one or two categories, making parts of the test theoretical rather than practical for their specific roles.
• Difficulty in Passing: Many fund managers are struggling to clear the NISM Series XIX-C exam, as it emphasizes regulations and operations across all categories, even for managers who only handle niche sectors.

Industry Response and Discussions

• Extension of Deadline: AIF representatives are seeking an extension for the May 9 compliance deadline, citing the difficulty in passing the exam within the given time frame.
• Segregation of Exam Categories: There is also a push for separating the exam into different segments based on AIF categories. This approach would allow fund managers to focus on the areas most relevant to their specialized work, rather than the broad and sometimes irrelevant content that currently makes up the exam syllabus.
  • NISM’s Role: The National Institute of Securities Markets (NISM) has reportedly been instructed by SEBI to develop separate tests for each AIF category. Consultations with fund managers are underway to revise the syllabus accordingly, with hopes that this change will be implemented before the May 9 deadline.

Current Status

• Although a decision on extending the deadline has not been finalized, discussions between SEBI and NISM are ongoing, with a focus on creating more tailored exams for fund managers based on their specific categories of expertise.
• The AIF sector has grown rapidly, with total commitments reaching ₹13.05 trillion by December 2024, signaling the sector’s increasing importance.

As the May 9 compliance deadline approaches, AIFs and fund managers are advocating for changes to the NISM Series XIX-C certification exam. The current one-size-fits-all approach is proving to be burdensome, particularly for managers who specialize in specific categories. Adjustments to the exam format, including potential category-specific tests, could alleviate some of the pressure and better reflect the real-world roles of fund managers in the growing AIF sector.

BS

7. The National Pension Scheme (NPS)

Context:

The National Pension Scheme (NPS) is a vital financial tool for retirement planning in India, offering tax incentives and a pension corpus. It has two types of accounts: Tier-1 (mandatory) and Tier-2 (optional), each designed for different purposes:

• Tier-1 Account: This is the default pension account for long-term retirement savings. It is intended to build a corpus that provides a pension upon retirement.
• Tier-2 Account: This works like a savings account and offers greater flexibility with higher equity exposure (up to 100%). It’s ideal for individuals who wish to invest without the long-term commitment of Tier-1.

Tax Benefits

• Tier-1: Subscribers can claim an additional tax deduction of ₹50,000 per year under Section 80CCD(1B) of the Income Tax Act under the Old Tax Regime (OTR).
• New Tax Regime (NTR): Self-contributions are not eligible for tax deductions, but employer contributions to NPS are deductible under Section 80CCD(2), up to 14% of the basic salary.

Withdrawal Options

• Partial Withdrawal: After 3 years, you can withdraw up to 25% of your contributions for specific reasons like:
  • Health conditions
  • Education
  • Marriage
  • Property purchase
  • Starting a business
  Note: There is a limit of 3 withdrawals during the entire tenure, with a mandatory 5-year gap between each withdrawal.
• Premature Withdrawal:
  • If the NPS account is closed before 60, only 20% of the corpus can be withdrawn as a lump sum.
  • The remaining 80% must be used to purchase an annuity pension plan.
  • If the corpus is below ₹2.5 lakh, purchasing an annuity is optional.
• Death Benefits:
  • In case of death, the entire corpus is paid to the nominee or legal heir.
  • Government employees must buy an annuity for their dependent, while private sector employees can choose between an annuity or a lump sum.
• Deferring Withdrawal:
  • Subscribers can defer the withdrawal of their 60% lump sum or 40% annuity until the age of 75, allowing their investments to grow for a longer period.

Flexibility

• Tier-2 Account allows flexibility with 100% equity exposure and can be used for short-term goals, unlike Tier-1, which is strictly for retirement.
• Funds can be transferred from Tier-2 to Tier-1 or to a bank account. However, the reverse is not allowed.

The National Pension Scheme (NPS) continues to be a cornerstone for retirement planning, offering tax benefits, investment flexibility, and various withdrawal options. While the increased no-tax limit under the New Tax Regime might reduce the immediate tax benefits, the long-term benefits of the scheme especially its diverse investment options and flexible withdrawal choices ensure it remains a valuable tool for building a retirement corpus.

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8. Mutual Fund Exposure to REITs and InvITs Grows, Yet Remains Marginal

Context:

Mutual funds’ investments in REITs and InvITs surged from ₹734 crore in March 2020 to ₹19,485 crore in March 2025, a 27x increase in 5 years.

• Despite this sharp rise, REIT and InvIT exposure stands at only 0.3% of the ₹65.7 trillion MF industry AUM, as per PRIME Database.
• MFs are allowed to invest up to 10% of AUM in these asset classes since 2017.

Market Constraints and Institutional Hesitancy

• Growth in investments has been gradual due to:
  • Limited liquidity in the REIT/InvIT market
  • Narrow investment universe (only 4 REITs and 18 InvITs)
  • Strong performance in equities, reducing the appeal of alternatives
  • Lack of analytical and evaluation capabilities at many fund houses
• Only 22 out of ~45 AMCs currently invest in REITs and InvITs.
• SBI, ICICI Prudential, and HDFC account for 77% of total MF exposure, with ICICI Prudential leading at ₹5,200 crore.

Index and Performance Benchmark

• The Nifty REITs & InvITs Index, launched in 2023, has shown:
  • 8.5% total return in 1 year
  • ~16% annualized returns over 5 years

SEBI Proposals to Enhance Participation

• The market regulator SEBI proposed:
  • Raising the investment cap from 10% to 20% for equity and hybrid MF schemes
  • Increasing single issuer exposure limit from 5% to 10%
• Other suggestions include:
  • Classifying REITs/InvITs as equity
  • Allowing MFs to launch dedicated schemes
• However, SEBI’s Mutual Fund Advisory Committee is not in favor of some of these changes.

Real Estate AIFs See Robust Growth

• Alternate Investment Funds (AIFs) invested ₹73,903 crore in real estate during 9MFY25, the highest among all sectors, up 8% from FY24-end.
• This represents 15% of total AIF investments, which stood at ₹5.06 trillion across sectors like IT, financial services, NBFCs, banks, and pharma.

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9. SEBI Issues Advisory on Social Media-Driven Securities Market Frauds

Context:

Rising incidents of impersonation and scams involving unregistered entities posing as SEBI-registered intermediaries on platforms like WhatsApp, Telegram, and fake apps. Fraudsters use fake websites, apps, and social profiles mimicking legit SEBI-registered advisors. They offer “VIP” trading clubs, fake testimonials, and initial profits to gain trust.

Tactics Used by Scammers

• Impersonation of legitimate advisors with forged SEBI registration certificates and logos.
• Use of dormant apps repurposed into fake trading platforms to bypass app store scrutiny.
• Claims of exclusive insider information or guaranteed high returns as part of pump-and-dump schemes.
• Use of generic mobile numbers rather than the official “1600” series for SEBI-registered entities.

Verification and Protection Tips

• Always verify SEBI registration numbers of advisors via SEBI’s official site.
• Check if the app is listed by a SEBI-recognised exchange or broker.
• Review developer name, app reviews, and look for scam alerts online.
• Avoid direct fund transfers outside of SEBI-registered brokers or clearing corporations.
• Watch for red flags like grammatical errors, low-resolution certificates, and pressure to act quickly.

Practical Steps After Cyber Fraud

• Report cyber frauds at https://cybercrime.gov.in or to the local police.
• File a complaint on SEBI’s SCORES portal: https://scores.gov.in.
• Inform NSE or BSE to help track and warn about unregistered entities.
• Report suspicious numbers on the Sanchar Sathi portal/app.
• Immediately alert your bank/UPI provider to block transactions.
• Dial 1930 to initiate freezing of the recipient’s account.

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10. BSE Celebrates 150 Years

Event Date: April 17, 2025
Location: Mumbai
Occasion: 150th Foundation Day of the Bombay Stock Exchange (BSE), Asia’s oldest stock exchange, established in 1875

Highlights of the Celebration

Unveilings

• Commemorative Coin launched by the Finance Minister
• BSE@150 Logo symbolizing the exchange’s legacy
• BSE 150 Index featuring 150 scrips, launched by the Minister of State for Finance

Legacy of BSE

• Established in 1875 as the Native Share & Stock Brokers’ Association
• First Indian exchange to gain permanent recognition under the Securities Contracts Regulation Act
• Introduced Sensex in 1986, India’s first equity index with a base value of 100
• Older than the Tokyo Stock Exchange, establishing it as Asia’s oldest stock exchange

The 150th anniversary marks a historic milestone in India’s financial evolution. With renewed focus on governance, innovation, and investor inclusion, BSE continues to shape the future of Indian capital markets.

11. PB Fintech Receives RBI Nod for PB Pay as Online Payment Aggregator

Context:

PB Fintech announced that the Reserve Bank of India (RBI) has granted in-principle authorisation to its wholly-owned subsidiary, PB Pay Private Limited, to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007.

Background

• In March 2024, PB Fintech’s board approved the formation of PB Pay to enter the payment aggregator business.
• PB Pay was incorporated in April 2024 to facilitate merchants with digital and/or offline payment infrastructure, for both domestic and cross-border transactions.
• In an exchange filing post-market hours, the company confirmed that the RBI has approved its application for a certificate of registration (CoR) as a Non-Banking Financial Company – Payment Aggregator (NBFC-PA).

Company Overview

PB Fintech is the parent company of policybazaar.com and paisabazaar.com, offering online marketing, consulting, and support services in the financial services domain, including insurance and lending products.

Financial Performance

• Q3 FY24 Net Profit: ₹71.54 crore, up 88.02% YoY
• Q3 FY24 Net Sales: ₹1,291.62 crore, up 48.31% YoY
• Stock Movement: Shares rose 0.21% to ₹1,625 on the BSE

This development strengthens PB Fintech’s position in India’s growing fintech and digital payments ecosystem. With RBI’s in-principle approval, PB Pay is now poised to scale its role in facilitating digital payment solutions across sectors.

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12. Bajaj Allianz Life Launches ‘Superwoman Term Plan’ for Women Policyholders

Context:

Bajaj Allianz Life Insurance has launched the Superwoman Term (SWT) Plan, a comprehensive term insurance policy tailored exclusively for women. The plan integrates term life coverage with additional health and child care benefits, aiming to address the unique needs of women across different life stages.

Key Features

Coverage Options

• Critical Illness Rider: Covers 60 illnesses, including breast, cervix, and ovarian cancers, providing financial support during medical treatment.
• Child Care Benefit: Optional rider that ensures monthly income for a child’s education if the policyholder passes away during the policy term.

Health Management Services (HMS)

Valued at ₹36,500 per year, these services include:

• Annual health check-ups
• Outpatient consultations (OPD)
• Pregnancy-related assistance
• Nutrition counselling
• Mental wellness support

Target Demographic

Designed specifically for female policyholders, the plan addresses multi-dimensional needs—from financial security to healthcare and parenting responsibilities.

Company Performance Metrics (as of March 31, 2024)

• Claim Settlement Ratio: 99.23%
• Solvency Ratio: 432%
• Assets Under Management (AUM): ₹1.18 lakh crore
• Customer Base: Over 3.93 crore lives covered

Strategic Intent

This product is part of Bajaj Allianz Life’s portfolio expansion into segment-specific term insurance, promoting inclusive financial products tailored to women’s evolving lifestyles.

Economy

1. Unleashing India’s Creative Economy

Context:

India has a rich history of contributions across science, arts, metallurgy, astronomy, and medicine. As the country aspires to become a $5 trillion economy, leveraging creativity and innovation across all levels is essential.

Global Creative Economy Trends (UNCTAD 2024)

• Global creative services exports reached $1.4 trillion in 2022 (up 29% since 2017).
• Creative goods exports hit $713 billion (up 19%).
• Combined, the creative economy supports over 50 million jobs globally and generates $2 trillion in annual revenues.

India’s Creative Economy Snapshot

• In 2019, India exported $121 billion in creative goods and services.
  • Creative services made up $100 billion.
  • Design sector: 87.5% of creative goods exports.
  • Arts and crafts: around 9%.
• In 2024, India’s creative economy is valued at $30 billion, employing 8% of the workforce.
• Creative exports rose by 20% last year, generating over $11 billion.

Types and Sources of Creativity:

• Creativity is classified into:
  • Deliberate & Emotional
  • Deliberate & Cognitive
  • Spontaneous & Emotional
  • Spontaneous & Cognitive
• Innovation often stems from deliberate and cognitive creativity — a key feature of grassroots innovation in India.

From Creativity to Innovation: Bridging the Gap:

• Creativity is often individual-based, while innovation needs institutional support.
• India has abundant grassroots creativity, but a lack of infrastructure and investment hinders conversion into scalable innovation.
• Notable grassroots innovations: Mitticool clay refrigerator, pedal-powered washing machines, amphibious bicycle — need funding and IPR protection.

Investment and Policy Support Needed

• India needs a robust ecosystem to support creativity and innovation — especially at grassroots levels.
• Suggested initiatives:
  • ‘One District One Innovation’ (on the lines of ODOP).
  • Stronger IPR frameworks for informal and indigenous innovations.
  • Increased climate adaptation investments at local creative levels.
• In 2023, climate tech in India received $2.85 billion, but grassroots creativity received a negligible share.

Road Ahead

• A national strategy must balance high-tech and grassroots innovation.
• Public-private partnerships, educational institutions, and local governments should jointly nurture India’s creative capital.
• Creativity must be seen not just as cultural expression but as a strategic economic resource.

TH

2. India Imposes 12% Temporary Tariff on Select Steel

Context:

In a significant trade policy move, India has imposed a 12% safeguard duty on select steel imports, effective April 21, 2025, for a temporary period of 200 days. The Ministry of Finance issued the notification in an effort to curb a surge in low-priced steel imports, particularly from China and South Korea.

Key Highlights:

• Duty Type: Safeguard duty under Section 8B of the Customs Tariff Act.
• Rate: 12% on specific steel categories (exact HS codes to be notified separately).
• Duration: 200 days from the date of publication (unless amended or revoked).
• Primary Target: Imports from China, India’s second-largest steel supplier in FY25.

Why This Move?

• India witnessed a nine-year high in steel imports, reaching 9.5 million metric tons in FY 2024-25.
• The country has been a net importer of finished steel for the second straight year, putting pressure on domestic producers.
• The safeguard duty is designed to protect Indian steel manufacturers from unfair pricing and market flooding by global exporters.

Potential Impacts

• Short-term rise in domestic steel prices.
• Relief for Indian steelmakers, especially integrated players like SAIL, JSW, and Tata Steel.
• Possible WTO scrutiny or bilateral concerns from impacted countries.
• May influence infrastructure costs if extended beyond 200 days.

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Agriculture

1. Nano Sulphur Could Boost Mustard Yield and Oil Content in India

Key Research Findings by TERI

• Yield increase: Nano sulphur use raises mustard yield by 30–40%, from 1,156 kg/acre to approx. 1,559 kg/acre (3.7 tonnes/hectare)
• Oil content rise: Enhances oil content by 28–30%
• Comparable to GM mustard DMH11, which shows 10–40% higher yield in trials
• Applicable to non-GM mustard varieties, making it a conventional alternative

Field Trials and Application

• Trials conducted in Gurugram, Haryana during Rabi season 2023–24
• Tested on two Indian Brassica juncea mustard varieties
• Two foliar sprays of nano sulphur applied at 35 and 50 days after sowing

Agronomic Benefits

• Improved plant height, number of branches, chlorophyll content, and biological yield
• Reduces need for traditional sulphur fertilisers by up to 50%
• Helps in better nutrient uptake due to targeted foliar application

Farmer Impact and Economic Advantage

• Additional income potential of ₹12,000 per acre for farmers
• Especially beneficial to small and marginal farmers
• Compensates cost of nano sulphur and foliar application

Soil and Environmental Relevance

• 41–45% of Indian soils are sulphur-deficient
• States like Madhya Pradesh, Maharashtra, Gujarat, Andhra Pradesh are most affected
• Nano sulphur is more efficient than traditional sulphur, especially in sandy or compact soils:
  • Nano sulphur availability to plants: 90–100%
  • Traditional sulphur availability: 10–15%

Sustainability and Innovation

• TERI’s nano sulphur is a green product, unlike some existing nano fertilisers
• Made with biological agents (e.g., plant growth-promoting bacteria and enzymes)
• Helps avoid leaching and root bypass seen with conventional sulphur

BS

2. The Twin Crisis: Climate Change and Food Insecurity

Context:

On Earth Day 2025, the global conversation takes a critical turn towards soil health—the unseen cornerstone of both climate resilience and food production. The Indian Biogas Association (IBA) asserts that addressing these issues simultaneously is possible by transforming how we feed our crops and care for the land beneath.

Chemical Fertilisers: The Hidden Cost of High Yields

• Since the Green Revolution, chemical fertilisers have turbocharged crop yields but left a deep environmental footprint:
  • 2.6 gigatonnes CO₂-equivalent/year emissions from their production and use.
  • 60–70% inefficiency: most synthetic nitrogen is lost to air or water.
  • 500+ coastal dead zones caused by nitrogen runoff, including a dead zone the size of New Jersey in the Gulf of Mexico.
• Soil degradation is severe:
  • UN: 33% of Earth’s soils degraded; 24 billion tonnes lost to erosion annually.
  • US Corn Belt: soils have lost 40–60% of original organic matter, weakening resilience to floods and droughts.

The Organic Shift: A Regenerative Climate Solution

Organic alternatives like compost and Fermented Organic Manure (FOM) from biogas systems offer a sustainable route:

• Rebuild organic matter and biodiversity in soil.
• Reduce emissions and water pollution.
• Enable natural nutrient cycles.

Rodale Institute’s 40-Year Farming Systems Trial proves:

1. Comparable yields after a 3-year transition.
2. 30% higher yields during extreme weather events.
3. Higher profits due to reduced input costs.

A 1% increase in organic matter allows soil to store 75,000 extra litres of water per acre—vital in a warming world.

Global Models of Soil-Centered Farming

• EU’s “Soil Deal for Europe” aims for 75% of soils under organic management by 2030.
• Kenyan farmers turn crop residues into compost for long-term soil enrichment.
• California’s Healthy Soils Program: $200 million+ in incentives for composting and cover cropping to reduce synthetic fertiliser use.

Biogas and the Circular Economy

IBA champions Fermented Organic Manure (FOM) as a game-changing byproduct of biogas systems:

• Can recycle 100% of food waste.
• Returns nutrients to soil while reducing methane emissions from landfills.
• Builds circular, localised economies that connect waste to food production.

From Soil to Sustenance

This Earth Day, the message is clear:

• The path to climate resilience and food security is not through more chemicals—but through more care.
• By investing in soil health via organic inputs, composting, and biogas byproducts, we ensure long-term productivity and sustainability.

BL

Facts To Remember

1. Pope Francis, a cheerful reformer, dies aged 88

Pope Francis, an energetic reformer who inspired widespread devotion from Catholics but riled traditionalists, died on Monday aged 88, just a day after greeting delighted worshippers after Easter Mass.

2. Pranav emerges fastest; Sachin wins javelin gold

Pranav Pramod Gurav felt a bit of a shiver as he lined up for the men’s 100m final in the 28th National Federation Athletics Championships at the Maharaja’s Stadium.

3. Madhya Pradesh Releases Two Cheetahs into Gandhi Sagar Wildlife Sanctuary

Chief Minister Mohan Yadav of Madhya Pradesh (MP) released two South African cheetahs, Pawak and Prabhash, into the Gandhi Sagar Wildlife Sanctuary located in Mandsaur district. This move is part of the state government’s Cheetah Project, aimed at increasing the population and conserving cheetahs in India.

4. Dr. Mangi Lal Jat Appointed Secretary of DARE and DG of ICAR

On April 22, 2025, Dr. Mangi Lal Jat, a globally acclaimed agronomist and sustainability expert, officially took charge as:

• Secretary, Department of Agricultural Research and Education (DARE)
• Director General, Indian Council of Agricultural Research (ICAR)

This appointment, approved by the Appointments Committee of the Cabinet (ACC), marks the beginning of a three-year tenure that is expected to drive transformative advancements in India’s agricultural research and education ecosystem.

5. India’s journey to Viksit Bharat by 2047 a shared national mission: FM Sitharaman

Union Finance Minister Nirmala Sitharaman has said India’s journey to become a ‘Viksit Bharat’ by 2047 is not merely an aspiration but a shared national mission.

6. Humpy Koneru takes lead at Women’s Grand Prix in Pune

In Chess, Indian Grandmaster Humpy Koneru seized the lead at the Women’s Grand Prix in Pune with a crucial victory over Chinese Grandmaster Zhu Jiner in the seventh round yesterday. 

7. NSO, IGIDR organize data users conference to foster dialogue on methodologies

The National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (Mospi), organised the Data Users Conference yesterday in collaboration with the Indira Gandhi Institute of Development Research (IGIDR), Mumbai.