Daily Current Affairs Quiz4 February, 2025 International Affairs 1. Trump Withdraws U.S. from WHO Context: On January 20, 2025, as one of his first executive orders upon his return to the White House, Donald Trump announced that the United States will be leaving the World Health Organization (WHO). His primary reasons included bias towards China and the poor handling of the COVID-19 pandemic. Major Reasons for This Move Public Perception of WHO in the U.S. Economic Issues Impact on WHO and Global Health Initiatives Funding Crisis WHO Program Disruptions Impact on Personnel and Research Will Others Step Up? 2. Panama to Pull out of China’s Belt and Road Initiative Context: The country of Panama announced that it has decided to leave China’s Belt and Road Initiative (BRI), which is a mega program involving infrastructure and investments. The latest move comes following pressure from the United States, with US Secretary of State Marco Rubio referring to several concerns over China’s rise in the Panama Canal region. Key Highlights: Panama Canal 3. Trump Pauses Mexico Tariffs Context: Mexican President Claudia Sheinbaum said after a conversation with U.S. President Donald Trump that the planned tariffs are on hold for a month, a statement confirmed by the White House. 4. U.S. Tariff Context: During his campaign, President Donald Trump often expressed his preference for tariffs, and since taking office, he has swiftly moved on this agenda. Key developments include the imposition of 25% tariffs on imports from Canada and Mexico, and 10% tariffs on goods from China. Key Highlights: Inflation Concerns India’s Takeaways National Affairs 1. Mission 3000 Context: Union Railways Minister Ashwini Vaishnaw has assured that despite criticism regarding the slow pace of freight loading, the ministry’s flagship cargo initiative, Mission 3000, remains on track. The mission aims to achieve 3,000 million tonnes (mt) of cargo by 2030. Cargo In transportation, cargo refers to goods transported by land, water or air, while freight refers to its conveyance. Mission 3000 and Strategic Projects Performance and Revised Targets Growth Challenges Government Investments and Long-Term Outlook 2. Viksit Bharat 2047 Context: The vision of a Viksit Bharat 2047 is ambitious, requiring India to adapt quickly to rapidly changing global dynamics. While challenges like geopolitical instability, climate change, and technology disruptions exist, adopting platform-based economic models can provide a pathway to achieve rapid innovation, economic flexibility, and resilience in a volatile environment. Platform-Based Approach: A Solution to Economic Uncertainty Examples of Successful Platforms Platform-Oriented Economic Policy India requires an overall platform-oriented economic policy aimed at enabling platforms across sectors. These should be constituted by the following elements: Union Budget 2025-26 3. India’s Clean Energy Transition Context: India has made significant strides in clean energy over the last decade, with increased budgetary allocations and policy initiatives. The challenges are underutilized funds, dependence on fossil fuels, and supply chain constraints. Key Highlights: Budgetary Allocations and Utilization PM-KUSUM Scheme (2019) Impact of COVID-19 on Energy Policy Changes in Policies and Obstacles Production-linked Incentives (PLIs) Import Duties and Domestic Slowdown of the Solar Industry. Coal Dominance in Power Generation Policy Adjustments on Critical Minerals Global Implications in the Future and India’s Part 4. Bilateral Investment Treaty (BIT) Context: One of the recent strong signals towards more foreign direct investment for the country comes from Union Finance Minister Nirmala Sitharaman as she declared a renewed version of India’s model Bilateral Investment Treaty (BIT). Since India is close to reaching finality on long-pending free trade agreements (FTAs) with the United Kingdom (UK) and the European Union (EU), changes need to be made to the current model BIT to try to make it an investment-friendly framework. Background and Key Issues in the Current BIT Framework The revamped model BIT must move from a defensive posture into one that actively facilitates foreign investment. This would have to consider the following: Progress and New BIT Agreements India has already entered into BITs with the UAE, Brazil, and Taiwan under the existing framework. These have been different from the model BIT, with some even: 5. Forest Conservation Norms Context: The Supreme Court has held that the Centre and States cannot reduce forest cover without providing land for compensatory afforestation. The judgement has been made in the light of legal cases against the 2023 amendment to the Forest (Conservation) Act, 1980. Key Highlights: No Reduction of Forest Land without Compensation Challenge to 2023 Amendments to the Forest (Conservation) Act Definition of ‘Forest’ and Supreme Court’s Position Court’s Stand on Forest Definition (1996 TN Godavarman Case) Implications of the Judgment 6. Manufacturing Purchasing Manager’s Indices (PMI) Context: Indian private sector manufacturing activity soared to a six-month high in January, ending a one-year low in December 2024. The record-breaking export performance and strong factory orders were attributed to the rise, as said by the HSBC India Manufacturing PMI. Key Highlights The PMI indicates recovery Exports Reach a 14-Year High Strong Factory Orders & Production Easing Cost Pressures & Price Trends Manufacturing Sector Sees Record Hiring Businesses Feel Hopeful About Future Implications & Outlook HSBC Flash Purchasing Manager’s Indices (PMI) Banking/Finance 1. Financial Sector Reforms under Union Budget 2025-26 Context: The Union Budget 2025-26 has come with a significant financial sector reforms, with key areas being focused on foreign investment, credit access, corporate bonds, MSME lending, and regulatory coordination. Key Highlights: Foreign Direct Investment in the Insurance Sector One State, One RRB Initiative Partial Credit Enhancement for Corporate Bonds Grameen Credit Score for Farmers Increased Kisan Credit Card (KCC) Limits Credit to MSMEs & NPAs Public Sector Bank Deposit-Credit Ratio Expansion of India Post Payments Bank Forum for Regulatory Coordination in Pension Sector Implications & Outlook 2. RBI’s Sovereign Bond Holding Context: It is estimated that the Reserve Bank of India (RBI) holds around ₹1 trillion in sovereign bonds which are maturing over the forthcoming financial year. Traditionally, the government would have swapped those maturing bonds for a longer dated debt, thereby reducing the gross borrowing target. Important Points: Implications 3. Monetary Policy Committee (MPC) Context: Monetary Policy Committee (MPC) Meet and Budget In the wake of the 2025-26 budget announced, the Reserve Bank of India’s