Current Affairs 1 January 2025

Daily Current Affairs Quiz
1 January, 2025

International Affairs

1. Quadrilateral Security Dialogue (Quad)

Context:

India and other Quad member-nations on Tuesday reaffirmed the grouping’s steadfast commitment to work towards a free, open, and peaceful Indo-Pacific amid China’s increasing military muscle-flexing in the region.

Quad: A Cooperative Alliance in Politics

• The grouping was initiated as alliance of the four countries, Japan, Australia, India, and the US, which was started in the year 2007.
• The dialogue was paralleled by joint military exercises of an unprecedented scale, named Exercise Malabar. 
• Aim
  • Deemed as an answer to the growing economic and military muscle of China.
• Known formally as the “Quad” not the “Quadrilateral Security Dialogue.”

2. UN condemns Taliban ban on Afghan women working at NGOs

Context:

UN human rights chief Volker Turk on Tuesday urged Afghanistan’s Taliban to reverse their ban on Afghan women working for NGOs.

Taliban will Close All NGOs Employing Women

3. China shared COVID Information

Context:

Beijing insisted on Tuesday that it had shared information on COVID-19 “without holding anything back”, after the World Health Organization implored China to offer more data and access to understand the disease’s origins.

Covid 19

Coronavirus disease 2019 is a contagious illness caused by a new coronavirus SARS-CoV-2. The disease rapidly spread across the world, bringing about the COVID-19 pandemic.

World Health Organization

4. H1B Visa

Context:

With Donald Trump poised to return to power in 2025 after winning the election, his administration is expected to implement stricter H1B visa policies, including higher wage thresholds, reduced visa caps, and a focus on prioritising USeducated or higherskilled applicants, according to industry experts.

H1B Visa Programme

5. COP294: Climate Change Negotiations and Finance

Context:

Finance has been a key point of climate change negotiations since the UN-led negotiations in 1991.The Intergovernmental Panel on Climate Change (IPCC) has identified finance, capacity-building, and technology transfer as critical enablers of climate action in developing countries.

COP29: Takeaways and Stand of India

Intergovernmental Panel on Climate Change (IPCC)

Intergovernmental Panel on Climate Change (IPCC) refers to an intergovernmental body of the United Nations. They are tasked to enhance scientific information on climatechange brought about by some human activities.

• Established
  • 1988 by the World Meterological Organization (WMO) and the United Nations Environment Programme (UNEP).
• Headquarter
  • Geneva, Switzerland
• Chairman
  • James Skea

National Affairs

1. Creation of a Mineral Exploration Master Plan

Context:

The government of Rajasthan is planning to create a mineral exploration master plan for five years.

Who is Responsible for Mines Exploration in India?

The Ministry of Mines (MoM) is responsible for the exploration and survey of minerals in India, except for petroleum, natural gases, and atomic minerals. The MoM also administers the Mines and Minerals Act, 1957 for all minerals and mines other than fossil fuels. 

Constitutional Provision

• Mining is under the Union List in the Seventh Schedule of the Constitution of India, but it is also part of the State List.
  • There is no direct entry for mines in the Concurrent List (List III) of the Seventh Schedule of the Constitution of India. But some aspects of mines, such as environmental regulation, labor laws, and industrial disputes, may fall under this list. This means that both the central and state governments are entitled to legislate on these aspects.

Some other Organizations related to Mining in India:

• Directorate General of Mines Safety (DGMS)
  • A regulatory agency which comes under the Ministry of Labour and Employment that deals with the health, safety, and welfare of mine employees .
• Indian Bureau of Mines (IBM)
  • A government organization that promotes the scientific development of mineral resources, conservation, and environmental protection in mines other than coal, petroleum, and natural gas.

2. Protests against Abolition of Districts in Rajasthan

Context:

Protests against the Rajasthan government’s decision to abolish nine newly created districts continued for a third day on Tuesday.

Constitutional Provisions

There is no clear provision in the Constitution for the abolition of districts. The district is a creation of the state governments, which have the authority to modify administrative divisions, reorganize districts, or even merge or bifurcate them. Such administrative reorganization comes under the matter of state policy rather than constitution.

Creation of State

The creation of a new state is governed by Articles 2, 3, and 4 of the Constitution.

• Article 2: Gives Parliament the authority to establish or admit new states to the Union. 
• Article 3: Gives Parliament the power to make laws for the formation of new states and the alteration of existing states. 

3. Social Hostilities Index Report

Context:

Pew Research Center‘s religion-related hostilities report for the year 2022.

Highlights:

• Social hostilities index ranked India firstly among 198 countries in that band of countries ranking from religious harassments, violence, terrorism, militia activities, and controversies over conversions or Symbols Use and Dress.

Important Indexes and India’s Position

Index	India’s Position (2023/2024)	Description	Issuing Organization
Human Development Index (HDI)	132nd (2022)	A composite index measuring average achievement in three basic dimensions: life expectancy, education, and per capita income.	United Nations Development Programme (UNDP)
Global Competitiveness Index (GCI)	58th (2023)	Measures factors that drive long-term productivity and prosperity, including institutions, infrastructure, and innovation.	World Economic Forum (WEF)
Ease of Doing Business Index	63rd (2020)	Ranks countries based on the conduciveness of their regulatory environment to business operations. (Note: Discontinued in 2021)	World Bank
Corruption Perceptions Index (CPI)	86th (2023)	Ranks countries based on perceived public sector corruption, determined by expert assessments and surveys.	Transparency International
World Press Freedom Index	161st (2024)	Measures media freedom in different countries, based on pluralism, independence, and transparency.	Reporters Without Borders (RSF)
Global Innovation Index (GII)	40th (2023)	Assesses innovation capability based on R&D, infrastructure, and education.	World Intellectual Property Organization (WIPO)
Environmental Performance Index (EPI)	168th (2022)	Ranks countries on environmental health and ecosystem vitality.	Yale University, Columbia University
Global Hunger Index (GHI)	107th (2023)	Multidimensional index measuring hunger and malnutrition around the world.	Concern Worldwide, Welthungerhilfe
World Happiness Index	126th (2023)	Measures happiness levels based on income, freedom, trust, and social support.	United Nations Sustainable Development Solutions Network (SDSN)
Global Terrorism Index (GTI)	11th (2023)	Assesses terrorism impact based on incidents, fatalities, and threats.	Institute for Economics and Peace (IEP)
World Economic Forum’s Social Mobility Index	52nd (2023)	Assesses how well countries offer opportunities for social mobility, including access to education, health, and economic opportunities.	World Economic Forum (WEF)
Global Cybersecurity Index (GCI)	10th (2020)	Measures countries’ commitment to cybersecurity, considering legal, technical, organizational measures, and capacity building.	International Telecommunication Union (ITU)
International Tax Competitiveness Index (ITCI)	61st (2023)	Ranks countries on the competitiveness of their tax systems, evaluating corporate taxes and individual taxes.	Tax Foundation
Global Peace Index (GPI)	135th (2023)	Measures peacefulness based on violence, conflict, incarceration rates, and access to weapons.	Institute for Economics and Peace (IEP)
Sustainable Development Goals Index	120th (2023)	Measures countries’ progress towards the 17 Sustainable Development Goals set by the UN.	Sustainable Development Solutions Network (SDSN)
Logistics Performance Index (LPI)	44th (2023)	Ranks countries on logistics performance, including trade efficiency, infrastructure, and customs procedures.	World Bank
Global Talent Competitiveness Index (GTCI)	80th (2023)	Assesses a country’s ability to develop, attract, and retain talent based on education, training, and employment.	INSEAD, Adecco Group, Google

4. Judges appointment

Context:

Unlike the U.S., Indian judges are not appointees of the ruling party and are selected through a collegium of senior judges.

Appointment of Judges

The Constitution of India provides for the appointment of judges in the Supreme Court and High Courts under Articles 124(2) and 217.

• Supreme Court: The President appoints Supreme Court judges by warrant under their hand and seal. Eligibility
  • Be an Indian citizen
  • Have served as a High Court judge for at least five years
  • Have served as a High Court advocate for at least 10 years
  • Be considered a distinguished jurist by the President
• High Court: The President appoints High Court judges by warrant under their hand and seal. The President consults with:
  • The Chief Justice of India
  • The Governor of the state
  • The Chief Justice of the High Court, if appointing a judge other than the Chief Justice
• Resignation
  • Both the High Court judge and a Supreme Court judge can resign to the President of India.

Impeachment of High Court Judge

5. India’s Foreigner Deportations and Visits

Context:

The highest number of foreigners deported from India were from Nigeria, followed by Bangladesh and Uganda, the Union Home Ministry said in its annual report for 2023-24.

Key Highlights:

• FRROs sent back 2,331 foreigners, of which 1,470 were Nigerian nationals, 411 Bangladeshis, and 78 Ugandans.

The Foreigners Registration Office

The Foreigners Registration Office is a department of the Indian government which is responsible for registering foreign nationals visiting India on a long-term visa. Its registration is within 14 days, 24 hours for Pakistani nationals, and children under 16 years are exempted from its registration.

• Ministry
  • Ministry of Home Affairs

6. National Informatics Centre’s (NIC)

Context:

Several government websites went down on Tuesday following a power outage at the National Informatics Centre’s (NIC) data centre in Shastri Park in northeast Delhi, sources said.

National Informatics Centre Services

National Informatics Centre Services Inc. is a government department of India under the Ministry of Electronics and Information Technology.

• It provides infrastructure, IT consultancy and services to the Central and State Governments towards their digitization and for research in IT. Its core mission is to satisfy the requirements of reporters for ICT and to induce digital access to government services for citizens.
• Ministry
  • Ministry of Electronics and Information Technology
• Director General
  • Shri IPS Sethi

7. ISRO’s POEM-4 Module

Context:

The Indian National Space Promotion and Authorization Centre, or IN-SPACe, was successful in establishing and operationalizing 10 hosted payloads from NGEs onboard PSLV-C60/SpaDeX.

PSLV-C60/SpaDeX

8. ‘Spurious’ drugs worth nearly ₹6.6 crore seized in Kolkata

Context:

A large quantity of suspected spurious anti-cancer, anti-diabetic, and other drugs has been seized from Kolkata. The seizure follows a joint investigation conducted by the Central Drugs Standard Control Organisation (CDSCO).

Central Drugs Standard Control Organisation (CDSCO).

Not of Standard Quality (NSQ) Drugs

9. The Competition Commission of India (CCI)

Context:

The Competition Commission of India (CCI), which has received a complaint of anticompetitive practices against quick commerce (qcom) companies, is waiting for more information on the allegations from the complainant before taking a decision on the matter.

The Competition Commission of India

The Competition Commission of India is the national top-level competition regulator in India. It enforces the Competition Act, 2002 to promote competition and prevent adverse activities. It investigates cases affecting competition.

• Ministry
  • Ministry of Corporate Affairs.
• Minister Responsible
  • Nirmala Sitharaman
• Formation
  • 14 October 2003

10. Biopharmaceutical

Context:

UK based pharma giant AstraZeneca has announced plans to restructure its biopharma unit to concentrate on next generation therapeutics.

Biopharmaceutical

A biopharmaceutical is a pharmaceutical drug that is made from biological sources, such as humans, animals, plants, or microorganisms. They are also known as biologics or biological medical products. 

11. Vadhvan Port

Context:

ITD Cementation India Ltd has won an engineering, procurement, and construction (EPC) contract worth ₹ 1,648 crore for construction at the Vadhvan Port in Maharashtra.

Vadhvan Port: Deep Seaport in Maharashtra

• Groundbreaking for the construction
  • By PM of India Shri N. D. Modi on 30 Aug 2024.
• Concept plan designed by Surendra Sharma in 2015 for MMB.
• Constructed by Jawaharlal Nehru Port Authority (JNPA).
• First Offshore Port built on artificial island in India.
• Estimate
  • Total estimated cost of construction : ₹76,220 crore /US$9.1 billion.
• Port island built on Arabian sea with depths of over 20 metres, accommodating Ultra Large Container Ships (ULCS) vessels.

Switzerland to Invest in Vadhvan Port

12. KenBetwa Project

Context:

The KenBetwa project involves transferring “excess” water from the Ken river to the Betwa river, both tributaries of the Yamuna, via a 221km link canal, including a 2km tunnel.

Ken-Betwa River Linking Project

13. Launch Plan of ISRO in 2025

• First Mission
  • An advanced navigation satellite NVS-02. This will also mark the 100th mission of Isro.
• Second
  • Gaganyaan, the unmanned mission in which Vyommitra, a female humanoid developed by Isro, is sent to space.
• Other Important Missions
  • The early part of March will see an Indo-US joint mission, NASA-ISRO SAR (NISAR) Satellite-the world’s most expensive satellite.
  • Isro is launching other satellites too, such as, a satellite for mobile communication for one American customer, in the US.
  • GSLV rockets, three PSLV launches, and one SSLV launch.

SpaDeX Mission

14. MGNREGS Work Demand Hike

Context:

The number of people demanding work every month on average under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) increased to a four-month high of 25.73 million in December, according to the latest data from the government.

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

Agriculture

1. Standard Operating Procedure of India for Liquidation of Primary Agriculture Cooperative Societies (PACS)

Context:

A new standard operating procedure (SOP) has been issued regarding the liquidation of PACS and LAMPS, according to which a liquidator should not take more than 15 days to complete the process after taking custody of property, claims, books, records, and documents.

Key Highlights:

• A Standard Operating Procedure (SOP) is a set of written instructions that outline the steps required to complete a routine activity or process. 
• 15-Day Deadline for Liquidators
  • The appointment of liquidators would be within a deadline of 15 days for conducting the entire process within 15 days.
• Seven-Day Deadline for Identification
  • A seven-day limit for the identification of dead PACS.
• Objective of the SOP
  • The objectives of the SOP are to ensure efficiency in the cooperative sector through easy and effective liquidation of the well-functioning LAMPs and defunct PACs.
    • The SOP aims to liquidate by March 31 of the financial year.
• Creation of New Societies
  • Fresh societies would be organized after the dissolution of the non-functional PACS.
• Guidance and Adoption
  • SOP was issued to all State Registrars of Cooperative Societies for their modification and adaptation.

Primary Agricultural Credit Societies (PACS)

Primary Agricultural Credit Societies (PACS) are the grassroots-level cooperative credit institutions in India that serve as a vital part of the country’s cooperative credit structure. They play a crucial role in providing financial assistance and credit to farmers, particularly in rural areas. PACS are an instrument of financial inclusion of rural India and empower farmers to get community support.

• Financial Role:
  • PACS grants short-term loans for agriculture, borrowing for consumption, education, and health to rural families.
• Membership
  • Any farmer, who is a member of that cooperative, may join, and the loans are typically disbursed through Kisan Credit Cards (KCC).
• Governed By
  • The management of the PACS is vested in an elected committee of representatives from the local farming community and reports to higher level institutions of the cooperatives.
• Functions Beyond Credit
  • Apart from lending services, the PACS is concerned with such non-lending activities as providing storage facilities, providing procurement services, consumer stores, or fertilizer outlets.
• Support by Government
  • The Government has various financial schemes in support of PACS that comprise interest subvention and other types of subsidy programs.

Large Area Multipurpose Cooperative Societies (LAMPS)

Large Area Multipurpose Cooperative Societies (LAMPS) are specialized cooperative organizations in India, primarily focused on promoting the welfare of tribals and people residing in hilly and remote areas. These societies are particularly important in rural and underserved regions, providing financial and non-financial services to their members.

• Target Group
  • Provides a service to any tribals and hill, forested, and other inaccessible areas of India.
  • Uplifts the downtrodden, offering them credit, procurement, and marketing services.
• Objectives
  • Tribal Development: Promotion of economic activities among tribals.
  • Credit Service: Provides short-term loans as a credit service to the tribal people.
  • Marketing Service: Helps in procurement and marketing of tribal products.
  • Social Welfare Programmes: Water and sanitation, education, health, and skills are encouraged among tribal people.
• Organization
  • Organized in the normal formats of cooperative societies with tribal participation as the main members and run by the elected board of directors from within the cooperative.

• Services Offered
  • Financial Services: Offers a variety of credit, savings, and insurance products.
  • Procurement and Marketing Services: Collects forestry and agriculture products and other local items from the tribals.
  • Training and Development: Training to tribals on agriculture, livelihood skills, business management, and sustainable practices.
• Governance and Regulation
  • Generally regulated by the State Governments and come under the purview of the State Cooperative Societies Act.
• Functionality of LAMPS in Rural and Tribal Development
  • Financial Inclusion: It would bring about bridging the gaps of economically marginalized spaces.
  • Livelihood Support: Provide access to resources for both farm and non-farm activities.
  • Market Access: Ensure that tribal products fetch better prices.
  • Community Development: Contribute towards social as well as economic upliftment of tribal communities.
• Government Support:
  • Different financial incentives, subsidies.

2. Draft National Policy Framework on Agriculture Marketing in India

Key Highlights:

• Unified National Market:
  • Create a single licensing and registration system across states.
• Single Fee System:
  • Removing disturbance of many fees on different levels for better agricultural trade.
• Private Market Reforms:
  • Open private wholesale markets to improve competition and access to markets.
• Direct Farm-Gate Purchase:
  • Enable processors, exporters, organized retailers, and bulk buyers to buy produce directly from farm-gate.
• Storage Facilities as Markets:
  • Declare spaces like warehouses, silos, and cold storages as “markets” within the ambit of agricultural marketing.
• Digital Transformation in Agricultural Marketing:
  • Establish private e-trading platforms, digital public infrastructures using blockchain, AI, and machine learning.
    • Blockchain is a distributed database that records transactions and tracks assets across a network of computers. It’s also known as Distributed Ledger Technology (DLT).
    • Machine learning (ML) is a subset of artificial intelligence (AI) that allows machines to learn and improve from experience without being explicitly programmed.
• Farmer-Centric Approaches:
  • Transform agricultural markets into being more opened and profitable for farmers.
• Sustainability and Efficient Practices:
  • Lower transaction costs, deregulate perishables, and facilitate cross-state agricultural trade.
• Taking and Future Roadmap for Implementation:
  • Legislate changes at the national level and partner with state governments.
• Aim of Proposal:
  • Establish a vibrant market system for farmers that can able to provide access to form produce’s good markets.

Banking Finance

1. Fiscal Deficit and Capital Spending of the Union Government

Context:

Fiscal deficit of the Union Government is now standing at 52.5% of total Budget Estimates meant for 2024-25 by the end of November, compared with 46.5% previously one month ago.

Capital Expenditure CapEx
Fiscal deficit

2. WhatsApp Pay can now extend UPI to all India users

Context:

National Payments Corporation of India (NPCI) said has removed the UPI user onboarding limit for WhatsApp Pay [third party app provider (TPA)], with immediate effect. With this, WhatsApp Pay can now extend UPI services to its entire user base in India, NPCI said.

Unified Payments Interface (UPI)

3. Small Savings Rates Stay Unchanged

Context:

The Centre on Tuesday decided to maintain status quo on the returns payable on small savings schemes such as Public Provident Fund (PPF) for the January to March 2025 quarter.

PPF – Public Provident Fund

• PPF meaning can be simply stated as a long-term investment scheme, popular among individuals who want to earn high but stable returns. Proper safekeeping of the principal amount is the prime target of individuals opening a PPF account.

Employees’ Provident Fund Organisation (EPFO) Summary

4. Family Settlement Disclosure

Context:

Kirloskar Oil Engines submitted the Application to the Securities and Exchange Board of India for the disclosure of family settlement deed entered among various Kirloskar family members.

Key Highlights:

• SEBI has urged the revelation regarding the deed of family settlement dated September 11, 2009 among different members of the Kirloskar family.
• The company states that the SEBI order is currently sub-judice and does not encompass the matters of contract law, corporate law, and company law.

SEBI Issued a Directive on Transfer of Shareholdings

5. NPCI Extends Period for UPI Apps

Context:

The National Payments Corporation of India (NPCI) has extended further the deadline for implementing the transaction volume cap on Unified Payments Interface apps by two years- until December 31, 2026.

Unified Payments Interface

Third-Party Application Provider

8. Recovery of Domestic Equity Markets

Context:

Domestic equity markets recorded annual profit for the ninth consecutive time because of a level of 10% below all-time high.

Domestic Equity Markets

A domestic equity market is an interface for buying and selling shares of companies within a country.

• What is it?
  • Also known as the stock market or share market, an equity market is an interface where companies can raise capital in exchange for issuing shares, and investors can buy and sell those shares.
• How it works?
  • Companies float stocks to investors, who buy them in anticipation of making a profit from selling them in the future. Investors can make a profit through capital gains if stocks perform well.
• Where it occurs?
  • Equity markets can be over-the-counter or on stock exchanges. In India, the National Stock Exchange and Bombay Stock Exchange are examples of stock exchanges.

9. Bank Credit Expansion

Context:

For that matter, bank credit growth during this financial year is predicted to remain under steam compared to the last year’s buoyancy and expected growth target of as high as 16%.

• Bank credit expansion is the increase in the amount of money that people and businesses can borrow from a financial institution.

10. Restrictions on Sangli Sahakari Bank Curb

Context:

The Reserve Bank of India (RBI) has lifted restrictions on Sangli Sahakari Bank, which had been in place for two and a half years.

• Background
  • In 2022, the Reserve Bank of India had ordered that the bank would not advance loans and advances and make investment and incur any liability, including borrowing funds and fresh deposit, and disburse or enter into compromise or arrangement, and see or transfer or otherwise dispose of any of its properties or assets, without its previous written approval.

RBI Jurisdictions

The RBI can ban NBFCs from sanctioning and disbursing loans if they violate regulations. For example, in October 2024, the RBI banned four NBFCs from doing so due to excessive interest rates and other violations

The RBI can impose restrictions on banks for a variety of reasons, including: 

• Digital business activities: In December 2020, the RBI instructed HDFC Bank to stop launching new digital business activities after recurring outages at its data center. 
• Non-compliance: The RBI can impose restrictions on banks that don’t comply with regulations. For example, in March 2022, the RBI asked Paytm Payments Bank to stop adding new customers after an audit found non-compliance.

11. Financial Stability Report for RBI 2024

Context:

The percentage, gross non-performing assets in the banking sector touched their 12-year low of 2.6 in September 2024.

Financial Stability Report (FSR) by RBI

12. SEBI Issues Eligibility Criteria for Passively Managed Mutual Funds

Context:

The eligibility criteria for the passively managed mutual funds have been issued by the Sebi in order to provide some eased rules.

Key Highlights:

• Aim
  • To reduce compliance effort, increase competition and provide easier entry for less risky schemes.
• The rules have been approved in September for the separation of passive funds.
  • Passive funds are pooled investments that aim to match the performance of a market index. Passive investors don’t assess the value of individual investments, but instead try to replicate the index’s returns.
• MF Lite: MF Lite is a framework for mutual funds that focuses solely on passive investment products, which include index funds, ETFs, funds of funds (FoFs), and more.
  • Passive funds with an AUM of ₹ 5,000 crore or more shall qualify for “MF Lite” based on domestic equity indices.
  • Only private equity funds can sponsor passive funds for the MF Lite category.

Mutual Fund Industry Seeks Relief of Taxes

13. Anthem Biosciences files papers for ₹3,395-crore IPO

Context:

Indian contract drugmaker Anthem Biosciences filed for a ₹3,395-crore ($397 million) initial public offering (IPO).

 Small and Medium Enterprise Initial Public Offering (SME IPOs):

14. Indo Farm IPO subscribed 17.70x on opening day

Context:

The initial public offer (IPO) of Indo Farm Equipment got subscribed 17.70 times on the opening day of bidding on Tuesday amid strong investors participation.

15.NaBFID invests ₹745 cr

Context:

The National Bank for Financing Infrastructure and Development (NaBFID) has invested 745 crore in long term bonds issued by NDRInvIT, the company said on Tuesday.

What is Bond?

Economy

1. Core Sectors Grow

Context:

Output in India’s eight core infrastructure sectors that constitute about 40% of overall industrial production, grew at a four-month high pace of 4.3% in November, led by a 13% surge in cement, marking the sharpest rise in the key construction input’s production in well over a year.

Core Sector in India

The core sectors of India are the eight key industries that have a significant impact on the economy and other industries: electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilizers.

The Index of Eight Core Industries (ICI)

The Index of Eight Core Industries (ICI) refers to the index of eight core industries: This is a monthly production index. Its performance measures eight sectors, regarded as the backbones of the economy and also its capital base. The ICI is, therefore, the lead indicator for monthly industrial performance, showing the growth rates in different industry groups.

2. Shifts in GDP Growth of India and Business Expectations

• GDP Growth Deceleration
  • Q1 FY25: 6.7%
  • Q2 FY25: 5.4%
  • Despite the slowdown, the government remains optimistic, with an average GDP growth of 8.3% over the past three years.
• Focus Areas for Growth
  • Continued government investment in infrastructure and fiscal measures to boost disposable income and consumption.
    • Disposable income is the amount of money an individual or household has left after paying taxes and other compulsory payments to the government.
• Recommendations
  • Advocate for the development of infrastructure.
  • Tax benefits for the salaried class and more incentives for new investments.
  • Hassle-free business transactions and reduced compliance burdens.

3. Reduction in the Procurement of Indian Public Sector Enterprises (FY24)

• Decline in Procurement from MSEs
  • 43% decrease in procurement from micro and small enterprises (MSEs) by central public sector enterprises (CPSEs) in FY24.
  • Reason for decline: Delays due to elections and a budget presentation delay (July 2024) led to a six-month loss in procurement time.
• What is Procurement?
  • Procurement is the action of pure buying that involves sourcing, purchasing, receiving, and ultimately inspecting all the goods and sorts of services necessary for a business to run its operations. This includes basic material to all manner of things in the office such as office supplies and software.
• Public Procurement Policy for MSEs
  • The policy, amended in 2012, increased the minimum annual procurement from MSEs from 20% to 25%.
  • At least 3% of the 25% procurement should come from women-owned MSEs and 4% from SC/ST entrepreneurs.
• Procurement via GeM Portal
  • The Government e-Marketplace (GeM) is a digital platform for the online procurement of goods and services by various government departments, organizations, and public sector units (PSUs)

Public Sector Enterprises (PSUs) are businesses in India that are owned or controlled by the government, either partially or wholly. 

4. Expenditure on Capital in India for FY25

Context:

Government capital expenditure in April-November 2024 is down by 12.3% on an annual basis. Compared to last year, the government has spent about 46.2% of Budget Estimates in contrast to 58.5%.

Capital Expenditure CapEx

5. Liquidity Deficit

Context:

In that Monday the Reserve Bank of India has infused about Rs.2.05 trillion into the banking system. Last week, the deficit had been crossed twice due to the outflow resulting from advance tax payments, festive spending, and the intervention of the central bank in the foreign exchange market.

Banking Liquidity Deficit

6. Gini Coefficient

Context:

India’s latest survey of household consumption expenditure, carried out from August 2023 to July 2024, found a decline in the ‘Gini coefficient’ of consumption inequality since the same period of 202223. 

Income Inequality & Gini Coefficient

7. Gold Price Gain

Context:

Gold is heading for its biggest gain in 14 years, with a 27% advance fueled by US monetary easing, sustained geopolitical risks and a wave of purchases by central banks.

Gold and Silver Exchangetraded Funds (ETFs)

Facts to Remember

1. IPS officer Vitul Kumar to lead CRPF as Acting chief

• Central Reserve Police Force Director-General Anish Dayal Singh retired on Tuesday, and senior IPS officer Vitul Kumar has taken over as the Acting chief till a permanent appointment is made.

2. Vaishali advances to World blitz quarterfinals

• R. Vaishali moved into the quarterfinals of the women’s World blitz chess championship in New York, topping the league stage. She was the only Indian to make it to knockout rounds.