Context: Since February 24, 2025, the SEBI consultation paper has affected OI calculations, limits on positions, and new trading sessions before and after continued derivatives trading. The delta calculation has been staunchly opposed by the Futures Industry Association, or FIA, a global body representing foreign portfolio investors. What Is Open Interest? Open interest is the total number of outstanding derivative contracts for an asset—such as options or futures—that have not been settled. Open interest keeps track of every open position in a particular contract rather than tracking the total volume traded. SEBI”s Key Proposals FIA Has Conclusively Identified Concerns as Debate over Proposed Limits Market Perspective While SEBI’s intent to strengthen risk monitoring is laudable, the FIA’s indorsement throws a huge trellised shadow around “practical and operational risks” capable of disrupting liquidity and market efficacy. A balanced, globally benchmarked approach adapted to best practices in standard risk management should therefore be developed to address all concerns around this proposal.
Inward remittances to India
Context: Inward remittances to India have more than doubled from $55.6 billion in FY2011 to $118.7 billion in FY2024. Advanced economies (AEs) including the US, UK, Singapore, Canada, and Australia accounted for 51.2% of total remittances in FY24, after 34.2% in FY21. This surge highlights a clear shift in migration patterns towards a skilled Indian diaspora working in advanced economies. Declining Share from Gulf Countries Comparative Data on Remittance Sources Source FY21 Share (%) FY24 Share (%) Advanced Economies (US, UK, Singapore, Canada, Australia*) 34.2% 51.2% GCC Countries (UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain) 50.2% 38% Reasons Behind the Shift Future Prospects
RBI Bulletin: State of the Economy
Context: The Reserve Bank of India (RBI), in its monthly bulletin’s State of the Economy article, has warned that escalating trade wars and tariff tensions, particularly after Donald Trump’s return as US President, could adversely impact global growth and fuel inflation. Global Financial Impact and Market Reactions Impact on India’s Economy Key Domestic Economic Indicators Monetary Policy and Liquidity Management Rising Bank Dependence on Certificates of Deposit (CDs) Strong Domestic Fundamentals Amid Global Challenges Source: BS & IE
Government Announces â‚ą1,500 crore UPI Incentive Scheme for FY 2024-25
Context: The Union cabinet announced an incentive scheme for Unified Payments Interface (UPI) payments of less than â‚ą2,000 for 2024–25 with an outlay of around â‚ą1,500 crore. Banks will get a 0.15% incentive, one fifth of which will be incumbent on adequate performance of their infrastructure over the year. The incentive will be paid out in the case of payments to small merchants. Features of UPI Incentive Scheme 2024-25 Importance of This UPI Incentive Scheme Government Digital Payments Strategy Other Cabinet Decisions Greenfield National Highway in Maharashtra Brownfield Ammonia-Urea Plant in Assam Revised Rashtriya Gokul Mission Revised National Program for Dairy Development The UPI incentive scheme for FY 2024 25 reflects the ongoing governmental initiative toward a cashless economy while yet maintaining fiscal prudence in the growth of digital payments. Special attention to small merchants and banks is intended to further deepen digital penetration in India’s economy. Source: TH
World Happiness Report 2025
Context: Happiness is important for overall well-being, improving mental and physical health and helps in leading a positive life. The United Nations released the World Happiness Report 2025 on the occasion of the International Day of Happiness. This year, India stood at 118th position among 147 countries. Key Highlights India vs. Neighboring Countries Global Leader Age-wise Happiness in India (2021–2023 average) Age Group Happiness Score Change from 2006–2010 Below 30 (Young) 4.28 -0.79 Lower-middle age (30–44) 3.76 (Lowest) -1.12 (Sharpest fall) Upper-middle age (45–60) 4.01 -0.94 Above 60 (Old) 4.10 -0.87 All Ages 4.05 -0.92 Factors Influencing Happiness Scores The report considers six major indicators:
Chabahar Port and Sagarmala 2.0
Context: The Chabahar Port, operated by state-owned India Ports Global (IPGL), currently has a capacity of 100,000 TEUs (Twenty-Foot Equivalent Units). Traffic Projections at Chabahar Challenges and Geopolitical Risks Strategic Importance of Chabahar Port Sagarmala 2.0: â‚ą40,000 Crore Initiative for Maritime Growth Key Highlights of Sagarmala 2.0
Prime Minister Internship Scheme (PMIS)
Context: Prime Minister Internship Scheme (PMIS): As per the Standing Committee Report on the Ministry of Corporate Affairs (MCA), top five emerged companies being the leading providers of internship opportunities Breakdown of Interns by Gender and Age State wise Participation Challenges Identified in MCA Funding and Allocation Recommendations by the Parliamentary Panel
India’s Inward Remittances in FY24
Context: India’s inward remittances more than doubled from $55.6 billion in FY11 to $118.7 billion in FY24. Advanced Economies (AEs) US, UK, Singapore, Canada, and Australia accounted for 51.2% of total remittances in FY24, up from 34.2% in FY21. The Gulf Cooperation Council (GCC) countries — UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain contributed 38% of India’s total inward remittances in FY24. Shift from GCC to Advanced Economies Country-Wise Remittance Breakdown (FY24 vs FY21) Country/Region Share in FY21 (%) Share in FY24 (%) United States 23.4 27.7 United Arab Emirates 18.0 19.2 United Kingdom 6.8 10.8 Singapore Not available 6.6 Canada Not available 3.8 Australia Not included in FY21 data 2.3 US: The Largest Remittance Source UAE: The Second-Largest Source Other Key Contributors Insights from RBI’s Survey Source: BS
India’s Monsoon Forecast
Context: India looks forward to the 2025 monsoon forecast for implications on agriculture, water resources, and economic stability. Will El Niño or La Niña rule the 2025 2026 season?Not to forget, El Niño and La Niña explained the high incidence of monsoon failing or surplus years to only 60 percent, but still remaining as great indications. Current ENSO Confusion: La Nina or Something Else? What Is the Dateline El Niño? The role that ENSO Transition Mode (ETM) Forecast for Summer and Autumn of 2025 Climate Change, Jet Streams, and Monsoon Complexity Hope, Uncertainty, and Preparation Yet, with the complexity of climate interactions and unprecedented heatwaves in early 2025, managing both expectations and risks remains a formidable challenge. India’s farmers and policymakers are left on edge, balancing hope with preparation amid climate uncertainty. The India Meteorological Department (IMD) and global climate scientists continue working toward improving model accuracy.
Union Cabinet Approved â‚ą4,500 Crore Greenfield Highway Project
Context: The Union Cabinet, under the aegis of Prime Minister Modi, has cleared this project for construction of six lane access controlled greenfield high speed National Highway that would connect JNPA Port (Pagote) to Chowk over Maharashtra for a total investment worth â‚ą4,500 crore into a total length of approximately 29.219 km. The execution of this project will be as per Build Operate Transfer mode. Significance of the Highway Project
