PLI Scheme A) Current Framework B) Proposed Expansion C) Analytical Perspective Concerns Over National E-Commerce Policy Focus on Export Competitiveness A) Interest Equalisation Scheme (IES) B) Analytical Takeaway Free Trade Agreements (FTA) Strategy A) Current Status B) Recommendations by the committee C) Analytical Viewpoint Strategic and Policy-Level Implications Area Opportunities Challenges/Concerns PLI Expansion Employment generation in labour-intensive sectors; strategic autonomy Need for careful fund management and measurable impact monitoring E-Commerce Policy Delay Untapped potential in rapidly growing digital markets Regulatory uncertainty may deter investments Export Promotion Lowering export credit costs to drive competitiveness Budgetary constraints and delayed scheme rollout FTAs and Trade Balance Greater market access and investment flows Risk of continued trade deficits unless addressed proactively The committee’s recommendations are forward-looking, aimed at strengthening India’s manufacturing base, enhancing export competitiveness, and strategically leveraging trade agreements.However, the government needs to:
Web Browser Ulaa
Context: The Indian government has awarded ₹1 crore to Tenkasi-based Zoho Corporation for developing an indigenous web browser named Ulaa. Key Purpose What is a Root Certifying Authority? Current Status
Glaciers Losing Ice
Context: Glaciers worldwide have lost 9,000 gigatonnes of ice since 1975, equivalent to an ice block the size of Germany with a thickness of 25 metres. 2024 alone saw glaciers losing 450 gigatonnes of mass one of the highest annual losses on record. Five of the last six years have registered record-high glacial mass losses. Consequences of Glacier Melting Global Concern and Action Call for Scientific Advancement Freshwater Reserves at Risk
India–New Zealand Relations
Key Geopolitical Shifts India–New Zealand Partnership Potential Agreements Signed Trade Challenges Connectivity Boost Diplomatic Concerns While diplomatic sensitivities exist, both nations stand to gain from strengthened cooperation in trade, defence, and regional stability as democratic partners in the Indo-Pacific.
Daily Current Affairs (DCA) 21 March, 2025
Daily Current Affairs Quiz21 March, 2025 International Affairs 1. India-U.S. Bilateral Trade Agreement (BTA) Context: A team of U.S. officials, led by Assistant Trade Representative Brendan Lynch, will visit New Delhi next week. The goal is to discuss and shape the proposed Bilateral Trade Agreement (BTA). Both sides aim to finalize the first tranche of the agreement by Fall 2025. Key Highlights: Discussion Points Timeline and Recent Developments Next Steps 2. Global Outstanding Bonds Cross $100 Trillion: OECD Context: Outstanding government and corporate bonds worldwide exceeded $100 trillion in 2024, according to the OECD‘s annual global debt report. Interest costs as a share of global output rose to their highest level in 20 years, reaching 3.3% of GDP among OECD member countries surpassing defence spending. The surge in borrowing costs poses challenges for governments and corporations, forcing them to prioritize productive, growth-oriented investments. Debt and Interest Trends Key Indicator Data Point Total outstanding sovereign & corporate bonds Exceeded $100 trillion in 2024 (nearly 3x 2007 levels) Government interest spending (OECD members) 3.3% of GDP — higher than defence spending Sovereign & corporate debt maturing by 2027 40% of total debt Share of low-income, high-risk countries’ debt maturing by 2027 50% within 3 years; 20% in 2024 alone Dollar-denominated bond borrowing costs Rose from 4% in 2020 to over 6% in 2024; 8%+ for junk-rated issuers Factors Driving Debt Concerns Risks for Governments and Corporates OECD cautions “If borrowing adds expensive debt without boosting productivity, economies could face more difficult times.” Climate Finance Challenge Global Debt Growth Over Time Year Global Public Debt (USD trillion) 2010 51 2015 62 2020 84 2023 97 2024 Over 100 Sovereign and corporate bond borrowing in 2024 was nearly three times higher than in 2007. The global debt surge, coupled with rising interest costs and refinancing risks, places immense pressure on governments and companies to align borrowing with long-term productivity. The challenge is particularly severe for emerging markets and low-income nations, highlighting the urgent need for capital market development and responsible fiscal management. National Affairs 1. Swadesh Darshan Scheme Background Key Findings from the CAG Audit PAC Committee Concerns Committee Directives 2. Eli Lilly Launches Mounjaro (Tirzepatide) in India for Diabetes and Obesity Product Launch Medical Benefits Pricing in India Growing Market Landscape in India Market Growth Source: TH 3. AI-Based Cloud Solution ‘Vayu’ Product Launch Key Features of Vayu Business Benefits Strategic Vision 4. SBI Report on Labour Migration Key Findings Post-Pandemic Inflation Trends (FY21–FY25) Key Contributing Factors Purchasing Power and Inflation Link State-wise Inflation Highlights (February data) Rural vs. Urban Inflation Forecast and Monetary Policy Outlook Source: TH 5. National Centres of Excellence (CoEs) for Skilling Key Highlights The planned establishment of five National Centres of Excellence (CoEs) signals a significant boost to India’s skill development ecosystem. By upgrading NSTIs with global expertise, industry collaboration, and advanced curricula, the initiative aims to create a robust skilled workforce for the manufacturing sector and beyond. With a focus on higher NSQF-level courses and international partnerships, these CoEs are set to play a key role in making India a global hub for skilled talent. 6. World Happiness Report 2025 Key Highlights How India and Its Neighbours Fared Country Happiness Score (2022–24) Previous Score (2021–23) Change in Rank Change in Score (vs. 2006–10) India 4.39 4.05 Improved from 126th to 118th -0.58 Pakistan 4.77 4.66 Dropped from 108th to 109th -0.37 Nepal 5.31 — — +0.71 Sri Lanka 3.89 — — -0.38 Bangladesh 3.85 — — -0.92 Despite economic challenges, Pakistan outscored India with a happiness score of 4.77 but saw its rank decline marginally. BRICS Happiness Score Comparison Country 2018–20 2019–21 2020–22 2021–23 2022–24 Brazil 6.33 6.29 6.13 6.27 6.49 Russia 5.48 5.46 5.66 5.78 5.95 India 3.82 3.77 4.04 4.05 4.39 China 5.34 5.58 5.82 5.97 5.92 South Africa 4.96 5.19 5.27 5.42 5.21 Factors Affecting Happiness Scores The World Happiness Report bases scores on the Gallup World Poll, asking respondents to rank their current life on a scale from 0 to 10 (worst to best possible life). Key indicators influencing happiness scores: India-Pakistan Economic & Health Comparison: While India’s happiness ranking has improved, it still lags behind Pakistan and several neighbouring countries, highlighting challenges in subjective well-being despite stronger economic metrics. The improvement signals progress but also calls for greater focus on social support, health, and perceived freedom to improve the nation’s happiness quotient. Banking/Finance 1. SEBI May Raise FPI Disclosure Threshold to ₹50,000 Crore Context: The Securities and Exchange Board of India (SEBI) is likely to increase the investment threshold for granular ownership disclosures by foreign portfolio investors (FPIs) from ₹25,000 crore to ₹50,000 crore. This strategic move is designed to enhance FPI confidence and align disclosure requirements with India’s growing financial markets. Key Highlights Indian Stock Market Continues to Rally Foreign Portfolio Investment Inflows at 1-Year High Possible Relief for Startups and Pre-IPO Founders SEBI’s proactive regulatory measures, including raising FPI disclosure thresholds and easing norms for startups and investment professionals, signal a strong commitment to fostering market growth, encouraging foreign investments, and supporting India’s dynamic financial and startup landscape. These developments are expected to have a positive long-term impact on investor confidence and market performance. 2. Payment Banks in India Context: Payments banks in India have approached the Union Finance Ministry, requesting an increase in their individual account deposit limit from the current ₹2 lakh to ₹5 lakh. This proposal was discussed in a meeting chaired by Department of Financial Services Secretary M. Nagaraju in New Delhi. Payment Banks Payment banks are specialized financial institutions, introduced by the Reserve Bank of India (RBI), that focus on providing basic banking services like deposits, withdrawals, and remittances, primarily through digital channels, to the unbanked and underbanked populations, but cannot issue loans or credit cards. Key Highlights Small Finance Bank Conversion IPPB Recognized for Financial Inclusion Current Players in the Payments Bank Sector Payments banks are urging the government to increase deposit limits and allow lending to the microfinance sector to strengthen their
SEBI Proposes Key Reforms on ESOPs and Lock-In Norms for IPO-Bound Promoters
Context: SEBI has proposed allowing employees identified as “promoter” or “promoter group” in the draft offer document (DRHP) to hold, exercise, or avail of: Relief for Founders of New-Age Tech Companies Industry Perspective on ESOP Reform “This clarification helps founders retain ESOPs, avoiding disruptive last-minute restructuring and ensuring alignment with investors.” “SARs are non-dilutive and may be preferred by new-age companies as they don’t disturb the cap table while still rewarding key personnel.” Changes in OFS (Offer for Sale) Lock-In Norms “The one-year holding period demonstrates long-term shareholder commitment. The eligibility should be based on the period of existence of ‘invested capital’.” SEBI’s proposed changes bring regulatory clarity and flexibility for IPO-bound companies, particularly founder-promoters in tech startups, by allowing continued ESOP and SAR benefits. Additionally, modifications in OFS lock-in norms will help investors demonstrate long-term commitment without unnecessary structural hurdles. Source: BL
IDFC FIRST Bank Launches ‘Ace’ Feature on Mobile App
Overview of the New ‘Ace’ Feature Key Features of the Ace Platform Ease of Use and Customer Empowerment The IDFC FIRST Bank’s Ace feature is a significant step in empowering retail investors by offering a seamless, informed, and easy-to-use mutual fund investment platform. It aims to bridge the information gap and make wealth-building accessible for all customers. Source: BL
Finfluencers Under Scrutiny
Context: A recent study by the CFA Institute, a global not-for-profit organization, reveals troubling insights into the influence of financial influencers (finfluencers) in India: Investor Risks Highlighted Data Point Key Insight 8% of investors duped Older investors (40+ years) are more susceptible to misleading advice. Investors aged 26–30 Prioritize the number of followers over credibility or regulatory status. 50%+ of cautious investors unaware Despite valuing SEBI registration, many investors are unaware of finfluencer registration status. A “finfluencer” is a financial influencer, someone who uses social media to offer financial advice, share personal experiences about money management, and discuss various investment topics, often with a large following that can influence their audience’s financial decisions. Concerns Raised Recommendations from CFA Institute With retail investors increasingly relying on finfluencers for stock tips, regulatory oversight, disclosure norms, and certification standards must be strengthened to protect investors.
SEBI Proposes Key Changes to EBP and RFQ Platforms
Context: The Securities and Exchange Board of India (SEBI) has released proposals aimed at strengthening the corporate bond market, increasing market liquidity, and improving transparency.The proposals focus on changes to the Electronic Book Provider (EBP) platform and the Request for Quote (RFQ) platform. Proposed Changes for the EBP Platform Key Proposal Current Norms Proposed Change EBP threshold for private placements Mandatory for issue sizes over ₹50 crore Lowered to ₹20 crore EBP for InvITs and REITs No specific requirement Mandatory for private placements above ₹1,000 crore Greenshoe portion Up to 5 times the base issue size Reduced to 3 times the base issue size Settlement cycle T+2 cycle Move to T+1 cycle Listing time T+3 days Reduced to T+2 days Bidding process for large issues Not mandatory Mandatory open bidding for issues over ₹1,000 crore An RFQ (Request for Quote) platform is an electronic platform where investors can request quotes from multiple dealers to buy or sell bonds and other debt instruments, facilitating a more transparent and efficient trading process. Proposed Changes for the RFQ Platform Impact of Proposed Changes These reforms reflect SEBI’s ongoing efforts to:
SEBI Considers ESOP Relaxation for Startup Founders
Context: Under current Companies (Share Capital and Debentures) Rules, 2014, ESOPs (Employee Stock Ownership Plans) are only issued to employees and prohibited for promoters. Many startup founders, initially employees, later become classified as promoters as their shareholding increases or after company reclassification. This ambiguity has led to confusion about whether they can retain or exercise ESOPs granted before they became promoters. SEBI’s Proposal and Consultation Paper Rationale Behind the Move Additional Regulatory Clarifications Proposed Key Highlights of SEBI’s Proposed ESOP Relaxation Aspect Current Regulation Proposed Change ESOP eligibility for promoters Prohibited for promoters or promoter groups Allow founders to hold/exercise ESOPs granted 1 year prior to IPO Ambiguity for founders Founders reclassified as promoters lose clarity on ESOPs Proposed change aims to provide clarity and policy certainty Cooling-off period Not specified Cooling-off period between ESOP grant and IPO to prevent misuse Impact on Startup IPOs
