Context: The Supreme Court has found that the Union government is yet to grant ‘in-principle approval’ to the Cauvery-South Vellar Link project four years after Tamil Nadu sought clearance from the Jal Shakti Ministry. The Cauvery-South Vellar Link Project Legal and Political Controversies Background of the Project Legal Argument of Karnataka Inter-State Water Disputes The water happens to be in the State List of the Indian Constitution. The State List is List II of the Seventh Schedule of the Constitution. Constitutional Provisions Inter-state water disputes in India are addressed in the Indian Constitution’s Article 262 and the Inter-State Water Disputes Act of 1956. Inter-State River Water Disputes Act 1956 It is one whose purpose serves the water dispute within the States. Inter-State River Water Disputes Amendment Bill 2017 Major Provisions Decisions by the benches of the Tribunal are final and binding on the parties Issues with Inter-State Water Dispute Tribunals UPSC Civil Services Examination, Previous Year Question (PYQ) Mains Q. Constitutional mechanisms to resolve the inter-state water disputes have failed to address and solve the problems. Is the failure due to structura
US Withdrawal from WHO
Context: United States President Donald Trump signed an executive order to withdraw from the World Health Organisation (WHO) on his very first day in office. The Decision to Withdraw US Withdrawal Implications The Case for US Reengagement with WHO Hope for Reconsideration Even after the US decision WHO has already attempted to contact hoping that the US will have second thoughts and again join the rest of the health world. Some hope within the health circles are that as scientists have created medicines that work wonders diplomacy can lead to a point where the US will once more engage with WHO. Conclusion
Current Affairs 23 January 2025
Daily Current Affairs Quiz23 January, 2025 International Affairs 1. US Export Controls on AI Chips! Context: The US Bureau of Industry and Security BIS introduced a tiered framework for controlling exports reexports and incountry transfers of AIrelated technology. The aim is to align with national security and foreign policy interests and to foster a secure and trusted technology ecosystem for AI. Scope of Technology Regulated Target specifics include advanced computing chips and closed AI model weights in particular.AI models are simply software programs performing mathematical calculations in producing outputs such as analysis or even media. The pattern of these operations, called the architecture of the model, determines its performance. Proposed Framework Rationale for Restrictive Measures Impact on India AI Chips 2. Trump warns of tariffs against EU and China Context: U.S. President Donald Trump pledged to hit the European Union with tariffs, adding that a 10% duty on Chinese imports could also come as soon as February 1, 2025. Tariffs on BRICS Nations! 3. Russia-Ukraine War Context: U.S. President Donald Trump told his Russian counterpart Vladimir Putin to make a deal to end the grinding Ukraine war “now” or face tariff hikes and more sanctions. Background of the Conflict Ukraine to Russia Reasons for Russian Aggression Latest Developments Implications for India India’s Position Current War Situation in Ukraine Escalation of Western Involvement National Affairs 1. EPFO Added 8.74 Lakh New Members! Context: The Employees’ Provident Fund Organisation enrolled around 8.74 lakh new members, registering an 18.8% rise from the figure in the corresponding period in 2023, the Union Labour Ministry said. Employees’ Provident Fund Organisation (EPFO) EPFO 3.0 2. Beti Bachao Beti Padhao Scheme Achievements Background Know more about: Beti Bachao, Beti Padhao (BBBP) Scheme Achievements of BBBP Restrictions and Challenges Future Recommendations Some Important Schemes Related to Women Empowerment and Child Development 3. Jute Industry in India Context: The Cabinet Committee on Economic Affairs (CCEA) has fixed the minimum support price (MSP) of raw jute for the 2025-26 marketing season at ₹5,650 a quintal, an increase of ₹315 over the price in 2024-25. Jute Fibre Definition and Properties Chemical Composition Uses Economic and Commercial Importance Ideal Condition for Jute Jute grows best in a warm, humid climate with well-distributed rainfall and fertile, well-drained soil. Rainfall Temperature Soil Climate Potential of the Jute Industry Economic Significance The jute industry is one of the important sectors of India’s economy, particularly in the eastern region, and West Bengal is prominent among these. India in Global Jute Production Challenges in Jute Industry Major Producers Jute Organisations Government Schemes for Promoting the Jute Industry The schemes are implemented by the National Jute Board, which is an attached office of the Ministry of Textiles. UPSC Civil Services Examination, Previous Year Question (PYQ) Prelims Q.1 Recently, there was a growing awareness in our country about the importance of Himalayan nettle (Girardinia diversifolia) because it is found to be a sustainable source of (2019) (a) anti-malarial drug(b) biodiesel (c) pulp for paper industry (d) textile fibre Ans: (d) Q.2 “The crop is subtropical in nature. A hard frost is injurious to it. It requires at least 210 frost-free days and 50 to 100 centimeters of rainfall for its growth. A light well-drained soil capable of retaining moisture is ideally suited for the cultivation of the crop.” (2020) Which one of the following is that crop? (a) Cotton(b) Jute(c) Sugarcane(d) Tea Ans: (a) Q.3 The lower Gangetic plain is characterized by humid climate with high temperature throughout the year. Which one among the following pairs of crops is most suitable for this region? (2011) (a) Paddy and cotton(b) Wheat and Jute (c) Paddy and Jute (d) Wheat and cotton Ans: (c) Mains Q. Explain various types of revolutions, took place in Agriculture after Independence in India. How these revolutions have helped in poverty alleviation and food security in India? (2017) 3. U.S. Withdrawal from Paris Climate Deal Context: US Withdrawal from Paris Climate Deal and Global Climate Action and India. Global Consequences India’s Climate Leadership Economic Impact and Opportunity Paris Agreement Banking/Finance 1. SIPs Proposed Features of Sachetised Mutual Funds by SEBI Context: The Securities and Exchange Board of India (SEBI) hopes to increase the participation of mutual funds mainly among low income groups by providing a sachetized mutual fund product through small ticket. Systematic Investment Plans SIPs Proposed Features of Sachetised Mutual Funds Eligibility Criteria for Schemes Challenges to Keep in Mind Source: The Hindu 2. UPI Circle Context: UPI Circle is a new BHIM UPI feature where a primary user can authorize a secondary user to make payments directly from the former’s bank account. This adds more convenience in managing finances for families, especially for elder family members, while still having control and security over the transactions. Key Features of UPI Circle Transaction Limits How UPI Circle Works? Benefits and Use Cases Source: Mint Unified Payments Interface (UPI) 3. Violation of Companies Act Context: HDB Financial Services’ IPO: Regulatory Watch for Violation of Companies Act Background Bonus Issue A bonus issue is when a company gives free shares to its existing shareholders. This is done by capitalizing on the company’s accumulated reserves from previous years’ profits. Explanation SEBI and bonus issues Regulatory Actions and Legal Consequence Source: Mint Economy 1. Principal Purpose Test (PPT) Context: The Income Tax department has come out with a fresh guidance note on applicability of Principal Purpose Test (PPT) for claiming tax treaty benefits, which will apply prospectively. The PPT will apply prospectively and aligns with India’s commitments to address treaty abuse as part of the Base Erosion and Profit Shifting BEPS framework. Principal Purpose Test (PPT) The “Principal Purpose Test” (PPT) is a tax treaty mechanism used to deny benefits to transactions where the primary motivation is to obtain a tax advantage through treaty shopping, rather than a legitimate business purpose. It prevents tax avoidance by scrutinizing the “principal purpose” of a transaction when claiming treaty benefits. Where is the PPT applied? Important Clarifications on PPT Implications For Taxpayers The enhanced clarity regarding the applicability of PPT provisions helps to reduce uncertainty in treaty benefit claims Businesses and investors
Violation of Companies Act
Context: HDB Financial Services’ IPO: Regulatory Watch for Violation of Companies Act Background Bonus Issue A bonus issue is when a company gives free shares to its existing shareholders. This is done by capitalizing on the company’s accumulated reserves from previous years’ profits. Explanation SEBI and bonus issues Regulatory Actions and Legal Consequence Source: Mint
Income Tax Cuts
Context: Income Tax Cuts is expected in the Upcoming Budget A Consumption Spurring Policy. Why Income Tax Cuts? Current Tax Exemption Limit and Inflation Adjustment Impact on Different Income Groups Impact of Wage Growth Slowdown Source: Mint
UPI Circle
Context: UPI Circle is a new BHIM UPI feature where a primary user can authorize a secondary user to make payments directly from the former’s bank account. This adds more convenience in managing finances for families, especially for elder family members, while still having control and security over the transactions. Key Features of UPI Circle Transaction Limits How UPI Circle Works? Benefits and Use Cases Source: Mint Unified Payments Interface (UPI)
U.S. Withdrawal from Paris Climate Deal
Context: US Withdrawal from Paris Climate Deal and Global Climate Action and India. Global Consequences India’s Climate Leadership Economic Impact and Opportunity Paris Agreement
SIPs Proposed Features of Sachetised Mutual Funds by SEBI
Context: The Securities and Exchange Board of India (SEBI) hopes to increase the participation of mutual funds mainly among low income groups by providing a sachetized mutual fund product through small ticket. Systematic Investment Plans SIPs Proposed Features of Sachetised Mutual Funds Eligibility Criteria for Schemes Challenges to Keep in Mind Source: The Hindu
Principal Purpose Test (PPT)
Context: The Income Tax department has come out with a fresh guidance note on applicability of Principal Purpose Test (PPT) for claiming tax treaty benefits, which will apply prospectively. The PPT will apply prospectively and aligns with India’s commitments to address treaty abuse as part of the Base Erosion and Profit Shifting BEPS framework. Principal Purpose Test (PPT) The “Principal Purpose Test” (PPT) is a tax treaty mechanism used to deny benefits to transactions where the primary motivation is to obtain a tax advantage through treaty shopping, rather than a legitimate business purpose. It prevents tax avoidance by scrutinizing the “principal purpose” of a transaction when claiming treaty benefits. Where is the PPT applied? Important Clarifications on PPT Implications For Taxpayers The enhanced clarity regarding the applicability of PPT provisions helps to reduce uncertainty in treaty benefit claims Businesses and investors who are relying on grandfathering provisions in treaties with Cyprus Mauritius and Singapore are not impacted by the PPT rules. For India’s Tax Framework It indicates that India takes seriously its need to reconcile its antiabuse efforts under the BEPS action plan with its treaty obligations on a bilateral basis. The guidance should further facilitate the smooth implementation of revised treaty protocols and enhance tax certainty for foreign investors. Source: The Hindu
Digital Agriculture
Digital Transformation in Indian Agriculture The Indian agricultural sector is witnessing a digital transformation underpinned by the Digital Agriculture Mission with a government outlay of 2817 crore. The mission aims at building robust public digital infrastructure and enabling farmers to avail ICT based tools for the optimization of agriculture productivity improvement and enhancement of socioeconomic outcomes. Definition Digital agriculture involves Information and Communication Technologies ICT and data ecosystems in farming for profitability sustainability and food security. Why Does Indian Agriculture Need Digitisation? What is the Digital Agriculture Mission? Launched in September 2024 to establish Digital Public Infrastructure DPI for agriculture. Key Features Other Government Initiatives for Digital Agriculture Challenges in Digitising Agriculture The Road Ahead for Digitalising Indian Agriculture End Building Infrastructure Broadband access and mobile connectivity must be expanded in rural areasSatellite imaging and land mapping investments. UPSC Civil Services Examination, Previous Year Question (PYQ) Prelims Q. What is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme? (2017) Select the correct answer using the code given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans: (c) Mains Q. How is science interwoven deeply with our lives? What are the striking changes in agriculture triggered off by science-based technologies? (2020)
