Daily Current Affairs Quiz16 & 17 March, 2025 International Affairs 1. India-France Defence Deals Context: Two major defence agreements with France, worth ~$11 billion, are awaiting final approval from the Cabinet Committee on Security (CCS). Deals include: Rafale-M Fighter Jet Deal Scorpene-Class Submarine Deal Budget & Financial Considerations Additional Procurement & Future Plans 2. Rodrigo Duterte’s Arrest Context: Former Philippine President Rodrigo Duterte was arrested on an International Criminal Court (ICC) warrant. A rare success for the ICC, as most warrants remain unexecuted without cooperation from national governments. ICC’s Case Against Duterte Challenges Faced by the ICC The ICC’s Legal Precedents and Future Role 3. India-New Zealand Free Trade Agreement (FTA) Context: India and New Zealand first began negotiating the Comprehensive Economic Cooperation Agreement (CECA) in April 2010. Key Highlights: Key Objectives of the FTA Challenges in Negotiations a) Tariff Disparity b) Dairy, Meat, and Wine Exports c) Movement of Skilled Professionals & Services Next Steps 4. Baidu’s Ernie X1 AI Context: Baidu has launched Ernie X1, a reasoning-focused AI model, and upgraded its flagship foundation model to Ernie 4.5. The move comes as a response to DeepSeek’s rapid rise, which has disrupted the AI landscape with cost-effective, high-performing models. Competitive Positioning Against DeepSeek & Global AI Leaders Benchmarking Against OpenAI Strategic Implications Baidu is doubling down on AI innovation and open-source strategies to counter DeepSeek’s rise and maintain relevance in China’s AI landscape. While Ernie 4.5 claims superiority over OpenAI’s GPT-4.5, the key battleground will be adoption and developer engagement. The next phase of China’s AI race will likely be defined by cost efficiency, reasoning capabilities, and ecosystem strength. 5. NASA Astronauts’ Long-Awaited Return Context: NASA launched a new crew to the International Space Station (ISS) on Friday night to replace the two stranded astronauts. The relief team is expected to dock, ensuring a smooth transition. The International Space Station (ISS) The International Space Station (ISS) is a large space station that was assembled and is maintained in low Earth orbit by a collaboration of five space agencies and their contractors: NASA (United States), Roscosmos (Russia), ESA (Europe), JAXA (Japan), and CSA (Canada). Do India Have Any Such Station in Space? Bharatiya Antariksha Station is India’s planned modular space station that will work under the aegis of ISRO. Weighting around 52 tonnes, it would be stationed at a distance of 400 km above Earth. . Launch of the inaugural component aboard an LVM3 launch vehicle is planned for 2028, followed by launching the remaining components by 2035 on the Next Generation Launch Vehicle, Soorya. Wilmore & Williams’ Unexpected Extended Stay Boeing’s Starliner Capsule Issues National Affairs 1. Greenhouse Gas Emission Impact on Orbital Space of Earth Context: Increasing anthropogenic greenhouse gas emissions will shrink the mesosphere and thermosphere of the Earth, reducing the safety carrying capacity of satellites from 50% to 66% by the year 2100. Greenhouse Gas Emission Greenhouse gas emissions are the release of gases like carbon dioxide, methane, and nitrous oxide into the atmosphere, which trap heat and contribute to the greenhouse effect, leading to global warming and climate change. Major Highlights of the Study Modelling Insights Implications and Recommendations 2. Melioidosis in India Overview of Melioidosis Odisha-Based Study on Environmental Impact Key Findings Implications for Public Health and Policy 3. Treating Chikungunya using HIV/AIDS drug efavirenz Efavirenz is a non-nucleoside inhibitor used for HIV/AIDS treatment. Chikungunya in India Chikungunya is a mosquito-borne viral disease characterized by fever and severe joint pain, transmitted by infected mosquitoes like Aedes aegypti and Aedes albopictus. Study Findings (IIT Roorkee Research) A. In-vitro (Cell Line) Studies B. In-vivo (Mouse Model) Studies C. Supporting Evidence from HIV Patients 4. Potential and Future Steps Source: TH 4. Madhav National Park Declared India’s 58th Tiger Reserve Context: Announced on March 9, 2024, by Environment Minister Bhupender Yadav. Madhav National Park (Madhya Pradesh) becomes India’s 58th tiger reserve. Madhya Pradesh now has 9 tiger reserves, the highest among all states. Rationale Behind Tiger Reserves Establishing a Tiger Reserve Funding for Tiger Conservation Importance of Madhav National Park Madhya Pradesh as India’s Top Tiger State India’s Tiger Conservation Status Source: TH 5. Crisis in Public Health Education and Employment in India Context: The U.S. decision to withdraw from WHO and reduce US-AID funding has disrupted global aid and health services. India, which relies on only 1% of international aid for healthcare, remains largely unaffected at a system level. Key Highlights: Growth of Public Health Education in India Challenges Facing Public Health Graduates Possible Solutions 6. Tackling the Problem of Nutrition in India Context: While health was not a priority for Budget 2025, it seems that nutrition is. In the coming financial year, two Union government schemes will receive higher allocations — Saksham Anganwadi and Poshan 2.0. Budget 2025 and Nutrition Focus Broader Perspective on Nutrition Issues with Current Nutrition Programs A Comprehensive Nutrition Agenda A successful nutrition strategy must include: Factors for Successful Implementation Moving Towards Holistic Well-being Source: TH Multidimensional Poverty Index 7. Rising MGNREGA Demand Context: The steady rise in demand for rural jobs over six months suggests widening economic distress rather than temporary seasonal fluctuations. While seasonal factors contribute, the scale and consistency of the increase point to structural weaknesses in rural employment generation. The post-pandemic economic recovery appears uneven, with rural areas lagging behind despite earlier signs of consumption revival. Link to Broader Economic Indicators Structural & Policy Considerations The rising demand for MGNREGA reflects wider economic stress rather than seasonal fluctuations. Weak GDP growth, manufacturing slowdown, and job scarcity indicate deeper structural concerns. Policy interventions should move beyond short-term employment guarantees to focus on sustainable job creation and rural industrialization. Banking/Finance 1. Why Mutual Funds Are Outpacing Bank Deposits? Structural Shift in Investor Behavior Taxation Dynamics – A Critical Factor Product Innovation & Customization – The MF Advantage The Digital & Distribution Edge Macro Factors & Liquidity Trends Future Outlook – Will the Trend Continue? A Fundamental Shift in Investment Culture The data suggests that mutual funds are no longer just an alternative to bank deposits—they are becoming the preferred choice for wealth accumulation. The interplay of changing risk appetite, tax efficiency, product innovation, and digital accessibility is reshaping India’s investment landscape.
Parliamentary Panel’s Recommendations on Crop Insurance & Residue Management
Key Recommendations on PMFBY (Pradhan Mantri Fasal Bima Yojana) Proposal to Curb Crop Residue Burning Potential Impact of Recommendations The committee’s recommendations focus on expanding crop insurance, ensuring financial security for small farmers, and tackling the environmental hazards of stubble burning. While implementation challenges exist, these measures could significantly enhance agricultural sustainability and farmer resilience in India. Source: BL
Challenges of India’s Farmers Producer Organisations (FPOs)
Achievement of Target Economic and Structural Benefits of FPOs Key Challenges Hindering FPO Growth Policy Recommendations for Sustainable Growth While India has successfully created 10,000 FPOs on paper, their long-term success depends on financial sustainability, professional management, and value-driven business models. A continued focus on technological integration, skill development, and market linkages will be crucial for ensuring that these farmer collectives thrive beyond mere numerical targets.
The Gold Rally
Drivers of the Gold Rally Market Dynamics & Risks Impact on India’s Economy Way Forward Source: TET
RBI Rate Cut Prospects & Economic Implications
Key Economic Indicators Driving Rate Cut Expectations Financial Market Reactions & Monetary Policy Signals Global Uncertainties & Potential Risks Macroeconomic Implications of a Rate Cut What Would be the Right Approach? Source: Economic Times
Banks’ Direct Integration with I4C
Context: Large Indian banks and payments firms (e.g., Razorpay, Cashfree) are integrating with the Integrated Cyber Crime Coordination Centre (I4C). Direct API integration will replace manual complaint processing, enabling instant alerts and automatic account freezing. Rationale Behind the Move Government & Regulatory Push Impact & Future Outlook The direct integration of banks and fintech firms with I4C’s real-time fraud detection system marks a major step in India’s fight against financial fraud. While implementation challenges remain, this move could significantly improve fraud detection, recovery rates, and overall digital payment security.
Rupee Symbol Controversy
Political and Cultural Dimensions Functional Importance of the Rupee Symbol (₹) Economic and Technological Considerations for the Rupee Geopolitical & Strategic Importance of the Rupee Way Forward
IndusInd Bank Leadership and RBI’s Role in CEO Appointments
Context: On March 7, 2025, IndusInd Bank announced that the Reserve Bank of India (RBI) approved a one-year extension for MD & CEO Sumant Kathpalia until March 23, 2026. This decision followed a previous two-year extension, despite the bank’s request for three years. The RBI’s move signals concerns about Kathpalia’s leadership while avoiding sudden disruption. The Derivatives Accounting Issue Derivatives are financial contracts, set between two or more parties, that derive their value from an underlying asset, a group of assets, or a benchmark. A derivative can trade on an exchange or over the counter. Prices for derivatives derive from fluctuations in the prices of underlying assets. Market Reaction and RBI’s Response The Need for a Review of CEO Appointment Processes Key Takeaways
RBI’s Currency Management Modernization Project
Context: The Reserve Bank of India (RBI) is undertaking a project to modernize its currency management infrastructure, focusing on enhancing efficiency, security, and automation. Key Features Why Now? Global Benchmarking Countries like the U.S., Japan, Germany, and Malaysia have undertaken similar initiatives to modernize their currency management systems. Selection Process By modernizing its currency management, the RBI aims to enhance operational efficiency, security, and resilience, ensuring India’s readiness to meet future cash demands. Source: BS
Global Capability Centres (GCCs)
Context: Neo banks (digital-only banks) and mid-sized banks are setting up Global Capability Centres (GCCs) in India. GCC expansion is the next big wave in India’s banking, financial services, and insurance (BFSI) sector. Market size of neo banks expected to grow from $19 billion in 2018 to $395 billion by 2026 (PwC). Why Are Banks Setting Up GCCs in India? Global Capability Centers (GCCs), also known as Global In-house Centers (GICs) or Captive Centers, are offshore or nearshore entities fully owned and operated by a parent company, providing a wide array of specialized services, ranging from IT and R&D to complex back-office functions. Key Players Expanding in India Growth of BFSI GCCs in India Future Outlook