Background & Strategic Importance Challenges in Negotiations Trade Relationship Overview Outlook & Implications
U.S. Intelligence Report Identifies China as Primary Global Threat
China’s Growing Security Threat Strengthening Alliances: The ‘CRINK’ Nations Beijing’s Response Other Security Threats Identified The deepening ties between CRINK nations could challenge U.S. global power, with China and Russia leading the geopolitical shift. The increasing cyber threats and regional conflicts further complicate international stability.
Daily Current Affairs (DCA) 26 March, 2025
Daily Current Affairs Quiz26 March, 2025 International Affairs 1. India-China 33rd WMCC Meeting Context of the Meeting Main Outcomes 1. Positive Diplomatic Atmosphere 2. Preparations for Next SR Meeting 3. Border Management Focus Leadership and Participation Current Border Status 1. Disengagement Achievements 2. Pending Challenges Way Forward The 33rd WMCC meeting highlighted a mutual commitment to dialogue, border stability, and progressive resolution of issues. 2. India and Singapore Sign Letter of Intent for Green and Digital Shipping Corridor Context: India and Singapore have signed a Letter of Intent (LoI) to jointly develop a Green and Digital Shipping Corridor (GDSC) during the ongoing Singapore Maritime Week (SMW). Key Areas of Cooperation Maritime Digitalisation and Decarbonisation Collaborative Efforts Objectives of the India-Singapore GDSC Strengthen Maritime Cooperation Accelerate Green Technology Adoption Promote Digital Shipping Solutions The India-Singapore Green and Digital Shipping Corridor marks a significant step toward sustainable maritime operations, with both nations committing to environmentally responsible shipping and digital innovation. This partnership will not only strengthen bilateral maritime ties but also accelerate global efforts towards achieving decarbonised and smart shipping solutions. 3. Russia and Ukraine Agree to Cease Black Sea Context: In a significant diplomatic development, Russia and Ukraine have agreed to suspend military strikes in the Black Sea and refrain from targeting energy infrastructure. The agreement was reached after three days of negotiations brokered by the United States in Riyadh, Saudi Arabia. Key Agreements Conditions Set by Russia U.S. Incentives Reactions from Leaders While this agreement signals a potential turning point in the conflict, both sides have conditions that could complicate full implementation. The global community will closely watch the next steps, particularly around sanctions and compliance with the agreed terms. TH National Affairs 1. Collegium System Context: The Vice-President and Rajya Sabha Chairman, Jagdeep Dhankhar, chaired a meeting of Rajya Sabha floor leaders in the context of the recovery of half-burnt Indian currency notes at the official residence of the High Court judge Justice Yashwant Varma on March 14, building ground for another intervention by Parliament in judicial appointments. What is the Collegium System? The Collegium System is how judges are chosen and transferred in India’s higher courts (the Supreme Court and High Courts).Interestingly, this system wasn’t created by the Constitution or by Parliament — it slowly took shape through decisions made by the Supreme Court itself. How Did the Collegium System Come About? First Judges Case (1981) Second Judges Case (1993) Third Judges Case (1998) Who’s in the Collegium? How are Judges Appointed in India? For the Chief Justice of India For other Supreme Court judges For High Court Chief Justices Problems with the Collegium System Too Secretive Risk of Nepotism and Favoritism No Checks and Balances Lack of Diversity What was done to fix it? The collegium system is how judges are chosen in India, but it’s criticized for being secretive and lacking accountability. While efforts to reform it have been made, such as the NJAC, they haven’t succeeded — leaving this system at the center of ongoing debates about fairness, transparency, and balance of power. UPSC Civil Services Examination Previous Year Question (PYQ) Prelims Q. Consider the following statements: (2019) Which of the statements given above is/are correct? (a) 1 only(b) 2 only(c) Both 1 and 2 (d) Neither 1 nor 2 Ans: (b) Mains Q. Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to appointment of judges of higher judiciary in India. (2017) TH 2. SAHYOG Portal What is the SAHYOG Portal? Mission of SAHYOG Portal Who runs it? How does the SAHYOG Portal work? What does it block? Why is it important? Current Use The SAHYOG portal is India’s centralized platform for blocking unlawful online content, designed to bring government agencies and online platforms together to fight cybercrime — but its use is raising debates about transparency, legal boundaries, and freedom of expression. 3. JSW Steel Becomes World’s Most Valuable Steelmaker Context: JSW Steel, led by Sajjan Jindal, has emerged as the world’s most valuable steel company with a market capitalisation (mcap) of $30.31 billion, according to Bloomberg data. The company has surpassed major global steel producers like ArcelorMittal and Nucor Corporation. Top Global Steelmakers by Market Capitalisation Rank Company Country Mcap ($ bn) TTM Revenue ($ bn) Profit ($ bn) 1 JSW Steel India 30.31 21.1 1.1 2 Nucor Corporation United States 29.40 30.7 2.0 3 ArcelorMittal Luxembourg 27.14 62.4 1.3 4 Nippon Steel Japan 24.43 58.0 3.1 5 Tata Steel India 23.09 27.5 -0.5 6 Tenaris Luxembourg 22.98 12.5 2.0 7 Baoshan Iron & Steel China 22.72 46.1 1.3 8 Steel Dynamics United States 18.99 17.5 1.5 9 Posco Holdings South Korea 17.35 53.3 0.8 10 Inner Mongolia BaoTou Steel China 11.54 9.3 -0.1 Source: Bloomberg, compiled by BS Research Bureau Key Comparisons Indian Steelmakers Rising Contextual Industry Trend The rise of JSW Steel as the world’s most valuable steelmaker signifies India’s growing influence in global manufacturing and highlights the shift in global steel market dynamics. The combination of strong valuations, aggressive expansion, and policy support is positioning Indian steel companies as key players in shaping the future of the global steel industry. 4. Astronomers Unveil New Theory on the Origins of Water in the Universe Context: Astronomers may be closer to solving one of science’s oldest mysteries: how did water originate in the universe? A groundbreaking study published in Nature Astronomy on March 3 suggests that the universe’s earliest stars produced water through colossal supernova explosions, challenging existing theories and potentially reshaping our understanding of life’s earliest possibilities. The Birth of the First Stars Star Populations Explained 3D Simulations and Key Discoveries The Infant Universe and Abundant Water Addressing Limitations This study revolutionizes our understanding of water’s origins, suggesting that life-supporting conditions may have existed far earlier than previously imagined. If proven, it could drastically reshape theories on planetary formation and the timeline for life’s emergence in the cosmos. Source: TH 5. How Global Warming Is Impacting Mountain Regions Across the World Context: The UNESCO report titled “Mountains and Glaciers: Water
Digital Crop Survey (DCS) and Agri Stack
Key Highlights Agri Stack Digital Inclusion for All Farmers State Farmer Registry The implementation of the Digital Crop Survey (DCS) and Agri Stack marks a transformative leap in digital agriculture, ensuring accurate crop data, enhanced farmer data security, and complete inclusion. These efforts will enable better planning, resource allocation, and agricultural productivity for farmers across India. PIB
Fintech Founders Unite to Form Regulatory Body, Seek RBI Nod
Context: Founders of top fintech startups Jupiter, Fi, Lendingkart, OneCard, and Signzy — have come together to form a new industry body. The objective is to secure a self-regulatory organisation (SRO) licence from the Reserve Bank of India (RBI). Leadership and Structure RBI’s Role and Criteria Regulatory The collaborative move by leading fintech founders marks a significant step toward industry-led governance. With regulatory oversight tightening, the new SRO aims to align fintech innovation with compliance, representing a unified voice to regulators and stakeholders. Source: Economic Times
RBI Infuses ₹44K Cr More into System via Year’s 5th OMO
Key Highlights Liquidity Deficit Lower Acceptance in the Latest OMO Demand and Auction Details Outlook for FY26 The RBI continues to manage liquidity challenges through calibrated interventions. The latest OMO reflects cautious acceptance levels, aligning with the central bank’s pricing comfort. Market participants anticipate sustained OMOs and stronger liquidity conditions in the upcoming fiscal year. Source: The Economic Times
SEBI’s Shift Under Tuhin Kanta Pandey
Context: Under the leadership of Tuhin Kanta Pandey, the Securities and Exchange Board of India (SEBI) is adopting a more deregulated, governance-focused approach, moving away from rapid regulatory tightening. Key Changes Announced at SEBI’s Latest Board Meeting Earlier Steps Ahead of Board Meeting SEBI’s New Playbook: Key Themes
RBI’s Proposed Ban on Prepayment Charges
RBI’s Proposal and Intent Why Transparency Is Welcome The Complexities of Banning Prepayment Charges Potential Adverse Effects A Middle-Ground Solution The Long-Term Solution While the RBI’s efforts to enhance transparency and borrower choice are commendable, a complete ban on prepayment charges may reduce credit availability for small businesses. A nuanced approach, balancing fair costs and free market movement, is essential to foster healthy credit growth for small enterprises. Source: BS
India’s Regulatory Framework
1. The Original Framework of Economic Reforms (1990s) Key Assumptions Regulatory Leadership: Early Approach Diverse Talent Pool Principle of Conflict-Free Appointments Erosion of Guardrails Gradual Change Legislative Tweaks Growing Dominance of Civil Servants in Regulatory Roles Recent Trends Risks and Concerns The Need for Course Correction Recommendations and Insights India’s regulatory landscape, once built on principles of independence, autonomy, and conflict-free governance, is facing significant dilution. Over-reliance on retired civil servants and relaxing safeguards threatens to blur lines between policymaking and regulation. Restoring a diversified talent pool, coupled with strong post-tenure restrictions, is essential to safeguard the integrity of reforms and ensure long-term market confidence and institutional trust. BS
NPCI, RBI Approve Increase in ATM Interchange Fees
Context: The National Payments Corporation of India (NPCI), with approval from the Reserve Bank of India (RBI), has announced an increase in ATM interchange fees for cash withdrawals from ₹17 to ₹19, effective May 1, 2025. Details of Fee Revision Transaction Type Previous Interchange Fee Revised Interchange Fee Cash Withdrawal (Domestic) ₹17 ₹19 Non-Financial Transactions (Domestic) ₹6 ₹7 Balance Enquiries (Nepal & Bhutan) ₹6 ₹7 (excluding GST) Note: All revised rates are exclusive of GST. NPCI Circular Highlights Key Points from RBI and NPCI Impact on Stakeholders Stakeholder Impact Banks & ATM Operators Increased revenue on each cash withdrawal and non-financial transaction. Consumers No direct increase in fees unless banks pass on the rise; encourages digital transactions. ATM Network (NFS) Continued alignment with market-driven pricing and operational costs. Exemptions to Note The revised interchange fees will not apply to: The interchange fee revision reflects RBI and NPCI’s efforts to ensure ATM operations remain viable and sustainable, balancing the cost burden between banks and ATM operators while maintaining customer access.
