Context: India and EFTA have progressed a step to enhance investments following the launch of a dedicated desk to facilitate European businesses who may want to upscale their India operations. The news comes ahead of the expected commitment of $100 billion in foreign direct investment each side is going to make forth from the signed trade deal. Essential Facts of the Trade Deal EFTA Members Participating: Economic Gains Available What’s Next?
Non Deliverable Forwards (NDFs)
Context: “The NDF(non-deliverable forward) was showing opening at 88. Since Ifelt that RBIwill surely intervene, Iasked exporters to cover it at whatever level they got above 87.90. The intervention was very strong as the rupee rose to 87.41 before the fall to 87.60. RBImay have sold $1-2 billion to protect the rupee,” said Anil Kumar, head of treasury at Finrex Treasury Advisors. Non Deliverable Forwards (NDFs) Non Deliverable Forwards (NDFs) are financial contracts used for speculating or hedging against currency fluctuations in markets where currencies are not freely traded. They are widely used by companies and investors to manage currency risk in restricted or controlled foreign exchange markets. How NDFs Work? Why NDFs Are Used? NDF Market & Applications
RBI Guidelines on Gold Auctions: Key Instructions for Banks and NBFCs
Context: The RBI has framed explicit directives to support transparency, non-discrimination and implementing instructions in an auction of pledged gold held by scheduled commercial banks/Non Banking Financial Companies/ Primary Cooperative Banks. The process of determining the reserve price becomes the most important affair when gold is used as collateral. Key Highlights: Reserving Price Establishment
Current Affairs 11 February, 2025
Daily Current Affairs Quiz11 February, 2025 International Affairs 1. Trump’s Gaza Proposal and Its Geopolitical Implications Context: Donald Trump, who is known for his bold negotiation tactics, proposed on February 4, 2025, that Gaza’s 2.3 million residents be relocated to Egypt and Jordan while the U.S. would redevelop the strip into a global tourist hub. This highly controversial proposal has sparked widespread reactions, with Saudi Crown Prince Mohammed bin Salman (MbS) stating that Saudi Arabia would not establish ties with Israel without a Palestinian state. Key Highlights: Key Trump Proposal & Reactions West Asia Geopolitical Reconfigurations Trump’s Foreign Policy Approach Economic Consequences Structural Economic Challenges Saudi Arabia’s Critical Position Challenges & Outlook Abraham Accord The Abraham Accords are bilateral agreements signed between Israel and the UAE and Bahrain on September 15, 2020. These deals, mediated by the US, concern Israel and the UAE before Israel and Bahrain. The signing was hosted by US President Donald Trump on the Truman Balcony, where he hoped to evoke historic peace treaties that were otherwise relevant only in previous administrations. 2. India U.S. Trade Talks Context: Prime Minister Narendra Modi’s bilateral meetings with U.S. President Donald Trump this week are expected to focus on tariff negotiations, with India considering further import duty reductions on U.S. goods like pecan nuts to ease trade tensions. Key Highlights: India’s Tariff Concessions on U.S. Agricultural Imports India’s Case for Low Tariffs on U.S. Industrial Products Possible U.S. Concessions for India U.S. Strategy: Tariffs as Negotiation Tool Further Trade & Defence Talks 3. UK-India Defence Partnership India (DPI) Context: The United Kingdom (UK) has launched the Defence Partnership India (DPI), a dedicated cell within the UK Ministry of Defence to strengthen bilateral defence cooperation with India. The announcement was made during Aero India, where multiple defence agreements were signed between the two nations. Key Highlights: Establishment of DPI Defence Agreements signed at Aero India The UK India Defence Partnership India (DPI) is one step forward towards joint defence production, increased security cooperation, and supply chain integration. The agreements signed at Aero India will not only boost indigenous defence manufacturing but also foster strategic interoperability between the two countries. 4. Modi arrives in France for AI summit National Affairs 1. Aero India 2025 Context: Defence Minister Rajnath Singh described Aero India as “the Kumbh of research”, as the biennial air show got under way at the Air Force Station in Yelahanka, Bengaluru, Introduction History of Aero India Key Highlights of Aero India Event Highlights Read more>> 2. India’s Global South Strategy Context: India has made itself increasingly an anchor in the Global South, with Prime Minister Narendra Modi focusing the attention of Indian foreign policy toward the amplification of the voice of developing countries. A reflection of that aspiration is a series of endeavors, such as the Voice of Global South Summit 2024, geared toward pushing India to become more proactive in reformation toward the more equitable global governance order. India’s Strategic Turn Around to China India and China: Competition or Different Strategy? Key Strategies for India to Succeed Human Centric Development Strengthening Global Governance & Institutional Capacity 3. The 3rd Voice of Global South Summit (VOGSS) Context: India is emerging as one of the global voices for a more representative, inclusive system of global governance. The 3rd Voice of Global South Summit (VOGSS), that took place on 17th August 2024 was thematically tagged under “An Empowered Global South for a Sustainable Future,” while 123 countries participated with only China and Pakistan missing. What is Voice of Global South Summit (VOGSS)? Key Outcome 3rd VOGSS 2024 Healthcare & Agriculture What is the Global South? India’s Expectations as a Voice of Global South The Way Ahead for India Conclusion India can forge a new and effective governance landscape in the global world, advancing Global South interests, but leadership has to be supported by strategic policies, credibility in global commitments, and strong domestic development. That way, it determines success to lead the Global South effectively, where domestic priorities meet international responsibilities. UPSC Civil Services Examination, Previous Year Question (PYQ) Mains Q.“If the last few decades were of Asia’s growth story, the next few are expected to be of Africa’s.” In the light of this statement, examine India’s influence in Africa in recent years. (2021) Q.Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post Cold War international scenario. (2016) 4. India Justice Report 2025-26 Context: The India Justice Report 2025-26 shows a resolute downward trend since 2019 in budgetary allocations to justice related schemes. Moreover, a significant aspect that the report has brought forward is that the actual expenditure incurred in a lot of sub components, especially in police modernisation and forensic capacity building, has been much lower than both the Budget Estimates (BE) and the Revised Estimates (RE). Key Highlights: Shrinking State Police Modernisation Budget Shifting Funds for Forensic Modernization The Modernisation of Prisons Fund Judiciary Related Schemes: Optimal Fund Utilisation 5. India’s Renewable Energy Context: India will likely fail to meet the February 10 deadline for submitting its third round of climate action plans under the Paris Agreement on account of hurdles in the adoption of renewable energy (RE). A major setback is that 40 GW of RE projects tendered by government agencies remain unsold. Key Challenges in Renewable Energy Adoption Lack of Power Sale Agreements (PSAs) Dropping Renewable Energy Prices Threating SEBs Stalled Investments and Regulatory Setbacks Coal Continues to Dominate Power Generation Consequences for India’s Climate Targets 6. Union Budget 2025-26: Health Sector Allocations and Issues Context: Union Budget 2025-26 charts out four major growth drivers agriculture, MSMEs, investment, and exports through reforming taxation, power, urban development, mining, finance, and regulation. The social sector spend, in general, public health, remains grossly disappointing and has dropped to 3.9% of the budget 2025 26 from 5.3% of the budget 2019-20. Key Highlights: Budget and Growth Trends Public Health Spending Still Below Targets Ayushman Bharat and Universal Health Coverage (UHC) Structural Challenges in Fund Utilization
Market Intervention Scheme (MIS)
The Market Intervention Scheme (MIS) is one of the flagship components of the PM AASHA scheme. It would assist farmers in the stabilization of market prices of perishable agricultural and horticultural produce such as tomatoes, onions, and potatoes (TOP crops) when the market prices fall by at least 10% from the normal season preceding it. Importance & Effect The Market Intervention Scheme has been reformed for strengthening mechanisms to protect farmers through price stability, proper procurement policies, and financial support; this will strengthen government intervention in times of crisis, ensuring there is no distress sale and effective compensation for the farmers concerned.
Fertilizer Subsidy
Context: The government will for the first time use some of the money in its Oil Industry Development Fund (OIDF) for conducting partial financing of its fertilizer subsidy program for FY 2025-26, official sources said. This is a novel way of using reserve funds that can provide critical sectoral support. Key Highlights: Use of Reserve Funds for Fiscal Management Legality & Strategic Utilization of OIDF Fiscal Impact & Policy Justification
Criminalization of Politics
Context: A report presented to the Supreme Court reveals the surge in criminal cases against Indian parliamentarians. The data, compiled from various high courts, was presented by amicus curiae and senior advocate Vijay Hansaria to a bench of Justices Dipankar Datta and Manmohan. Key Highlights: State Wise Breakdown of MPs Facing Criminal Charges States with Relatively Lower Criminal Cases Against MPs Pending Criminal Cases against Legislators as on date Total cases pendency in terms of trials to be taken up against the Sitting/ Former lawmakers 4,732. No. of top pendency among states: Cases Under Section 144 (Prohibitory Orders) Violation Challenges & Supreme Court’s Response The report brings to the fore the profound entrenchment of criminalization in Indian politics, where nearly half the sitting MPs have cases registered against them. Although the Supreme Court has directed for speeding up trials, judicial inefficiencies and a lack of compliance by states ensure that the matter is still in the hands of the CJI for further action as the implications of criminal elements in governance are coming to the fore.
Household Consumption Expenditure 2023-24
Context: The new HCES for 2023-24 unveiled that “households in the country spend most on conveyance among nonfood items,” making it a rise in movements with high prices in petrol and deficient public modes of transport. Key Highlights: Percentage of the Monthly Per Capita Consumption Expenditure Spent on Transport Average Monthly Per Capita Expenditure (MPCE) State wise Trends in Conveyance Expenditure
Union Budget 2025-26: Health Sector Allocations and Issues
Context: Union Budget 2025-26 charts out four major growth drivers agriculture, MSMEs, investment, and exports through reforming taxation, power, urban development, mining, finance, and regulation. The social sector spend, in general, public health, remains grossly disappointing and has dropped to 3.9% of the budget 2025 26 from 5.3% of the budget 2019-20. Key Highlights: Budget and Growth Trends Public Health Spending Still Below Targets Ayushman Bharat and Universal Health Coverage (UHC) Structural Challenges in Fund Utilization Shrinking Fiscal Space for Social Sectors
India’s Renewable Energy
Context: India will likely fail to meet the February 10 deadline for submitting its third round of climate action plans under the Paris Agreement on account of hurdles in the adoption of renewable energy (RE). A major setback is that 40 GW of RE projects tendered by government agencies remain unsold. Key Challenges in Renewable Energy Adoption Lack of Power Sale Agreements (PSAs) Dropping Renewable Energy Prices Threating SEBs Stalled Investments and Regulatory Setbacks Coal Continues to Dominate Power Generation Consequences for India’s Climate Targets
