Daily Current Affairs Quiz1 October, 2025 National Affairs 1. India–EFTA Trade and Economic Partnership Agreement (TEPA) Source: News on Air Context: The India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) came into effect on 1st October 2025. It is India’s first FTA with four developed European countries, promising $100 billion investments and 1 million jobs in the next 15 years. About TEPA Key Features Key Area Provisions / Highlights 1. Investment & Employment • $100 billion FDI commitment over 15 years• 1 million direct jobs in manufacturing & services 2. Market Access for Goods • EFTA offers zero-duty access on 92.2% tariff lines• Covers 99.6% of India’s exports 3. Services & Mobility • Commitments in 100+ sub-sectors (IT, education, audiovisual, business services)• Mutual Recognition Agreements (MRAs) in nursing, architecture, chartered accountancy• Facilitates: Mode 1 (Digital delivery), Mode 3 (Commercial presence), Mode 4 (Personnel mobility) 4. Intellectual Property Rights (IPR) • TRIPS+ standard with safeguards for generic medicines• Prevents patent evergreening while protecting innovation 5. Sustainable Development • Focus on green growth, social inclusion, and environmental protection• Encourages technology collaboration in renewable energy, precision engineering, and health sciences 2. Dugong Conservation in India Source: IE Context: The International Union for Conservation of Nature (IUCN) has recognised Tamil Nadu’s Dugong Conservation Reserve in Palk Bay as a global model for marine biodiversity conservation during the IUCN World Conservation Congress 2025. Key Highlights: 3. Female Labour Force Participation in India Context: The Female Labour Force Participation Rate (FLFPR) measures the share of women who are employed or actively seeking work. While India’s FLFPR fell from 31.2% in 2011-12 to 23.3% in 2017-18, it rose sharply to 41.7% in 2023-24, driven mainly by rural women. Female Labour Force Participation Rate (FLFPR) Key Highlights: Dimension Key Findings (2017-18 / 2018-19 vs 2023-24) Earnings vs Participation • Female Labour Force Participation Rate (FLFPR) rose, but real earnings declined for most women (except casual workers).• Increased participation ≠ better-paid or secure jobs. Sectoral Composition • Share of rural women in agriculture increased: 71.1% (2018-19) → 76.9% (2023-24).• Decline in women’s employment in secondary (industry) and tertiary (services) sectors. Shift from Domestic Duties • Women reporting domestic duties fell: 57.8% (2017-18) → 35.7% (2023-24).• Helpers in household enterprises: 9.1% → 19.6%.• Own account workers/employers: 4.5% → 14.6%.• Indicates shift mainly to self-employment, not wage employment. Vulnerabilities • Helpers in household enterprises often unpaid/low-paid, blurring line between employment & domestic labour.• Even among self-employed women, real earnings declined, showing persistent income insecurity. Banking/Finance 1. FPI Outflows from Indian Equities Context: Foreign Portfolio Investors (FPIs) withdrew ₹23,885 crore from Indian stocks in September 2025, marking the third consecutive month of net outflows, according to NSDL data. What are Foreign Portfolio Investors (FPIs)? Characteristics Impact of FPI Flows on Indian Market FPI vs FDI Feature Foreign Portfolio Investment (FPI) Foreign Direct Investment (FDI) Nature Investment in financial assets (stocks, bonds, etc.) Investment in physical assets/companies (factories, infrastructure, JV) Duration Short-term, liquid Long-term, stable Control No control over management Provides management control/ownership Volatility Highly volatile (quick entry & exit) Stable and less volatile Regulation SEBI (Securities market regulator) DPIIT + RBI (FEMA guidelines) 2. ADB Downgrades India’s Growth Outlook for FY26 Source: TH Context: The Asian Development Bank (ADB) has lowered India’s economic growth forecast for the current financial year (2025-26) to 6.5% from the earlier 6.7%, mainly due to the impact of 50% U.S. tariffs on imports from India. The growth outlook for 2026-27 has also been revised downward to 6.5% from 6.8%. Key Highlights: Dimension Key Highlights Growth Forecast • Developing Asia’s growth for 2025 revised: 4.9% → 4.8%.• 2026 forecast cut: 4.7% → 4.5%.• Downgrades due to global uncertainty, especially in India & Southeast Asia. Impact of U.S. Tariffs • Elevated tariffs cover ~60% of exports to the U.S.• Key affected sectors: textiles, garments, jewellery, shrimp, chemicals.• Likely to weigh on growth in H2 2025-26 and 2026-27.• Merchandise export growth modest, but services exports remain strong.• Investment growth subdued amid trade uncertainty. Domestic Demand & Consumption • Consumption demand expected to grow faster, aided by lower food prices and tax cuts.• Public investment continues to support growth momentum. Inflation Outlook • FY26 inflation revised down to 3.1% due to low oil & falling food prices.• FY27 inflation projected at 4.2% as food prices normalize. 3. India’s Fiscal Deficit Context: The Centre’s fiscal deficit for April–August 2025 stood at 38.1% of the full-year Budget Estimate (BE), as per data released by the Controller General of Accounts (CGA). What is Fiscal Deficit? What to Do When Fiscal Deficit Occurs? Governments adopt a mix of short-term financing measures and long-term structural reforms: Short-term Financing (Bridging the Gap) Long-term Structural Measures Last Resort Types of Deficit Type of Deficit Formula Meaning Implication Fiscal Deficit Total Expenditure – (Revenue Receipts + Non-debt Capital Receipts) Borrowing requirement of govt. Indicates debt burden. Revenue Deficit Revenue Expenditure – Revenue Receipts Govt borrowing to meet daily expenses. Fiscal imprudence. Primary Deficit Fiscal Deficit – Interest Payments Borrowings excluding past debt interest. Shows fresh burden of current policies. Effective Revenue Deficit Revenue Deficit – Grants for capital creation Refines revenue deficit by excluding productive transfers. Used in Budget targets. Monetised Deficit Part of Fiscal Deficit financed by RBI printing new money Direct monetisation of deficit. Highly inflationary, rarely used now. 4. RBI Launches Scheme to Activate Inoperative Accounts and Settle Unclaimed Deposits Source: News on Air Context: The Reserve Bank of India (RBI) has launched a one-year incentive scheme (October 2025 – September 2026) to encourage banks to reactivate inoperative accounts and repay unclaimed deposits to rightful claimants. What is an Inoperative Account? Key Highlights: 5. SEBI Seeks Disclosures on Promoters’ In-Laws and Related Entities Source: TOI Context: The Securities and Exchange Board of India (SEBI) has clarified that listed companies must disclose information about the relatives of promoters, including: What is the New Proposal? Why is SEBI Doing This? Related-Party Transactions (RPTs) 6. RBI Governor to Chair New Payments Regulatory Board (PRB) Source: