Daily Current Affairs Quiz5 February, 2025 International Affairs 1. China Retaliates Against U.S. Tariffs Context: China declared new tariffs on US energy, autos and equipment as it aimed to hit back against President Trump’s fresh round of trade restrictions. It deepened a tariff battle that could involve new export controls, probes of American companies and retaliation in critical US agricultural markets. Key Highlights: China’s Retaliatory Tariffs Investigations against U.S. Companies   China Increases Export Controls Over Key Metals Trump’s Stand on Tariffs Impact on India 2. Deportation of Indian Immigrants from the US Context: US military C 17 aircraft landed in Amritsar carrying 205 Indian nationals who were deported from the United States. The deportation flight from San Antonio, Texas, is a part of the continued efforts under the Trump administration to grapple with illegal immigration. Key Highlights: Illegal Immigrants An illegal immigrant in India is a foreigner who has entered in a country either without valid documents or who initially had a valid document, but has overstayed beyond the permitted time. H1B Visa 3. The Trump Effect Context: Donald Trump’s move back to the White House has shaken global politics within just a few weeks. Aggression on immigration, trade tariffs, climate policies, and affirmative action is reshaping the world order. Many are still in fear of his unpredictable moves, but India should view this as a chance to reassess its own economic and geopolitical strategies. Key Highlights from Trump’s Actions National Affairs 1. Uniform Civil Code (UCC) Bill Context: Under Gujarat government which comes under a five member committee consisting of a former Judge of the apex court headed one will prepare bill to provide ‘Uniform Civil Code (UCC)‘ this is expected before the scheduled within 45 days of their inclusion as, nationwide implementation for all UCC should be envisaged according to him. Uniform Civil Code (UCC) 2. Gati Shakti Data Sharing & New Fund of Funds Scheme Context: In place of a direct access to the Gati Shakti national masterplan portal, a query based data sharing model is what the government seems to be weighing up for the private sector. Besides, ₹10,000 crore Fund of Funds Scheme focuses on high tech and manufacturing startups. Key Highlights: Gati Shakti Data Sharing Implementation & Next Steps DPIIT (Department for Promotion of Industry & Internal Trade) ₹10,000 Crore Fund of Funds for Startups Focus Areas Banking/Finance 1. Partial Credit Enhancement (PCE) Context: While announcing the facility of Partial Credit Enhancement (PCE) under the Union Budget 2025-26, this might facilitate low rated companies to better the rating and, thus upgrade it for such institutional investors which, hitherto, generally have been going in for AAA rated or better rated bonds. Partial Credit Enhancement (PCE) Partial Credit Enhancement (PCE) is a facility that allows banks to upgrade the credit rating of bonds issued by some companies. This way, these companies can raise funds from the bond market and from investors like pension funds and insurance companies. Key Highlights: Effects on Lower Rated Bonds Role of NaBFID Challenges & Concerns 2. Gold Loan Portfolio Context: Bank’s gold loan portfolio rose 71.3% YoY to ₹1.72 trillion as of December FY25, while growth was seen at 17% last year. This has come on the back of the sky-rocketing gold prices and decelerating unsecured loans, with an RBI increased risk weightage on the same. Gold Loan Portfolio A gold loan portfolio is the aggregate of gold backed loans given out by a financial institution. Such loans ensure rapid liquidity to borrowers while at the same time guaranteeing security to lenders by pledged gold assets. How Does a Gold Loan Work? Gold Loans Advantages Why Add Gold to Your Investment Portfolio? 3. Algorithmic Trading Context: The Sebi has released a new framework of regulation designed to make retail algorithmic trading safer and transparent. This newly developed framework for regulating algorithmic trading will promote the interest of the retail investors and also will not harm market integrity. What is Algorithmic Trading? Some Major Changes New Algorithm Classification: Potential Impact Economy 1. New Export Support Schemes for MSMEs Context: The government is designing new support schemes to help small exporters with collateral free loans and compliance costs arising from non tariff measures imposed by developed nations. The schemes will also encourage alternative financing and reduce risks in uncertain markets. Key Developments: New Export Support Measures Export Promotion Mission & Budget Allocation Alterations in the Export Credit System Scaling Up Trade Assistance for Risky Markets 2. Fiscal Deficit Management Context: The Union Budget 2025-26 announced by the Finance Minister, Nirmala Sitharaman, will be a continuation of the government’s focus on credible fiscal management. It aims at achieving a fiscal deficit at 4.8% of GDP and has thus beaten the earlier target at 4.9%, despite nominal GDP growth turning out to be lower than what was expected. Fiscal Management Highlights Capex Strategy Public Debt Management & Long Term Targets General Government Debt & Economic Risks Agriculture 1. Kisan Credit Card (KCC) Loan Limit Increased Context: In the Budget, the loan limit under Kisan Credit Card (KCC) has been enhanced from ₹3 lakh to ₹5 lakh. It will benefit 8 million of 77.7 million KCC accounts only. But it is offered only for farmers with good repayment history and commercial farming, only. Expansions to Extend Scope Financial Burden KCC & Interest Subvention Schemes Rising Non Performing Assets in Agriculture What is Kisan Credit Card Scheme? 2. Nematode Context: Introducing a ‘first ever symposium’, organised by ‘Syngenta India’, a number of, more than 100 agricultural scientists gathered on this occasion and together discussed about growing threat ‘nematodes’. These soil microbes cause “crop losses estimated to be approximately ‘₹ 25,000 crore a year’. Nematodes Nematodes, also known as roundworms or eelworms, belong to the phylum Nematoda. They are one of the most diverse and widespread groups of animals, found in various ecosystems, from soil and water to inside plants and animals. Some species are free-living, while others are parasitic, affecting humans, animals, and plants. Key Findings of Symposium Strategies