Current Affairs 12 & 13 January 2025

Daily Current Affairs Quiz
12 & 13 January, 2025

International Affairs

1. U.S. Sanctions on Russian Energy

Context:

The Biden administration expanded sanctions on Russia’s energy sector, targeting major Russian energy players Surgutneftegas and Gazprom Neft. Specific oil tankers and Russian maritime insurance providers are also sanctioned, increasing risks and costs for oil shipments.

• Russia’s Status:
  • Russia is currently India’s largest supplier of crude oil, accounting for over 35% of India’s imports
• Volatility in Crude Oil Supply:
  • Indian refiners are likely to face disruptions owing to reduced supplies of Russian crude.
• High Costs:
  • The Indian refiner has to negotiate higher-priced contracts for oil which worsens the long-term cost and reliability of Russian crude.
• Policy Changes:
  • India needs to address risks in the shadow fleet and sanctions-enabled carry trade.

Impact of Russia-Ukraine War on India

Russia’s percentage of India’s crude oil imports has risen dramatically since the Russian invasion of Ukraine in February 2022.

• Before the war:
  • Russia accounted for less than 1% of the total oil imported by India.
• After the war:
  • Russia accounts for nearly 40% of India’s oil imports.

Impact on India

• Energy Supply and Price Fluctuations:
  • The ban on Russian oil and gas may raise the price of crude oil and natural gas. India is one of the significant importers of energy.
• Diversification of Energy Sources:
  • India might seek alternative sources from the Middle East, USA, Africa, and Southeast Asia to meet energy requirements.
• Diplomatic Relation
  • It may affect trade and diplomacy with Russia, as well as with USA if India seeks to Strengthen the diplomatic relation with Russia.
• Global Price Hike
  • The impact in international oil and gas prices may push up transportation and production cost, hence inflation.

Global and Political Consequences

• Pressure on Trump Administration:
  • Sanctions mark an early challenge for the Trump administration.
• Energy-Dependent Economies:
  • European and Indian policymakers face the challenge of navigating energy dependencies as the sanctions are tightening.
• Global oil market volatility
  • Global oil market volatility could be expected to result in higher energy prices and geopolitical tensions.

US Sanctions on Russia’s Energy Sector!

Oilfields (Regulation and Development) Amendment Bill, 2024

National Affairs

1. Labour Laws in India

Context:

The central trade unions condemned a statement by the chairman and managing director of Larsen & Toubro, S.N. Subrahmanyan, favouring a 90-hour work week with employees working on Sundays too.

Labour Laws in India

The labour laws of India are designed to protect workers and ensure fair treatment, but most employees are still exploited, underpaid, and have a poor work-life balance. The gap between law and practice is wide, with outdated regulations, weak enforcement, and the growing influence of large corporations complicating the protection of workers’ rights.

• Factories Act, 1948:
  • Sets health, safety, and working environment in a factory.
  • Limits working hours up to 48 hours a week, and provides paid annual holidays after working 240 days.

• Minimum Wages Act, 1948:
  • Provides for minimum wages with regard to the respective regions and industries.
  • Prevents the employer from exploiting employees by recovering minimum wages rates.

• Payment of Wages Act, 1936:
  • Ensures that the employees receive wages on time for work done.
• Maternity Benefit Act, 1961:
  • It provides 6 months of maternity leave with full pay.

India New Labor Codes

• Industrial Relations Code, 2020:
  • Easy union registration procedure, resolution of disputes, and strike regulation procedure.
• Code on Social Security, 2020:
  • Consolidates social security provisions for workers in unorganised sectors.
• Occupational Safety, Health, and Working Conditions Code, 2020:
  • This code sets new standards for worker safety and welfare.
• Code on Wages, 2019:
  • This code will make wage-related laws easier, provide timely payment, minimum wages, and overtime.

Exploitation of Employees in India Despite Labour Laws

• Weak Enforcement of Labour Laws
  • Labour laws are not implemented properly because of the lack of proper monitoring and accountability.
  • Corruption and bureaucratic inefficiencies do not allow swift action against violators.
• High Unemployment Rates and Population
  • High Unemployment rates always leads to lesser jobs, which means too many chasing a fewer jobs. So the employees are always afraid of loosing their jobs if they raises their voice.
  • Population also play a vital role in Rising Unemployment rate.
• Informal Employment Sector
  • High prevalence of informal workers in sectors like construction, domestic work, and agriculture.
  • Lack of written contracts makes them vulnerable to exploitation.
• Lack of Awareness and Education
  • Workers, especially in rural areas or less educated sections, are ignorant of rights given through labor laws.
  • Employees who are afraid of retaliation could not raise their voice against exploitation.

• Labour Inspections Are Not Tightly Done
  • A lack of inspectors causes difficulties in implementing the labour laws.
  • Employer resistance to unions, thus the ability of workers to bargain for their rights is curbed.
• Low Wages and Job Insecurity
  • Low wages and Job insecurity leads to Overwork and unpaid labor.

2. SEED Scheme

Why in News?

Denotified tribes (DNT), semi-nomadic tribes (SNT), and nomadic tribes (NT) are protesting against the Centre’s SEED scheme for rejection of caste certificates in 29 states, and the Idate Commission’s report of 2017.

The Scheme for Economic Empowerment of DNTs (SEED)

The Scheme for Economic Empowerment of DNTs (SEED) is a program of the Department of Social Justice and Empowerment, Government of India, to assist in the development and welfare of Denotified Tribes (DNT), Nomadic Tribes (NT), and Semi-Nomadic Tribes (SNT):

• Launch
  • The scheme was launched on 16 February 2022.
• Ministry
  • Ministry of Social Justice and Empowerment
• Objectives
  • The scheme provides coaching to DNT candidates for competitive exams, health insurance, financial assistance for housing (through PMAY/IAY), and community-level initiatives to build institutions.
• Eligibility
  • DNT communities with a yearly family income of Rs. 2.50 lakh or less from all sources are eligible if they are not already receiving benefits from similar government schemes.
• Implementation
  • The Development and Welfare Board for De-notified, Nomadic and Semi-Nomadic Communities coordinates with state governments, the National Health Authority, and NRLM in implementing the scheme.
• Beneficiary identification
  • State governments and union territories identify beneficiaries and issue necessary certificates.

De-Notified, Nomadic and Semi-Nomadic Tribes of India

• De-Notified Tribes (DNTs) are vulnerable and deprived communities of India.
• Criminal Tribes Act of 1871
  • DNTs were ‘notified’ as ‘born criminals‘ during the British regime under the Criminal Tribes Act of 1871.
  • These Acts were repealed by the Independent Indian Government in 1995, which made them ‘De-Notified’.
• Nomadic and semi-nomadic communities
  • Nomadic and semi-nomadic communities are moving from place to place; they do not have a specific place to reside.
  • Till now, DNTs and DNTs were never allowed to purchase private land and home.
  • DNTs are mostly under SC, ST, and OBC categories.
• Population
  • South Asia comprises the world’s largest nomadic population.
  • Nearly 10% of India’s population is Denotified and Nomadic.

Commitee and Commissions on DNTs, NT and SNTs

• A National Commission for De-notified, Nomadic and Semi-Nomadic Tribes (NCDNT:
  • A National Commission for De-notified, Nomadic and Semi-Nomadic Tribes (NCDNT) was constituted in 2006 by the then government.
  • It was headed by Balkrishna Sidram Renke and submitted its report in 2008.
  • The commission held that “It is an irony that these tribes somehow escaped the attention of our Constitution makers.
  • They are deprived of Constitutional support unlike Scheduled Castes and Scheduled Tribes“.
  • The Renke commission estimated their population at around 10.74 crores based on Census 2001.
• Idate Commission:
  • The National Commission was constituted in 2015 under the chairmanship of Shri Bhiku Ramji Idate.
  • This commission was to identify and properly list DNT communities in different states, to evaluate the progress of development of these communities in the states.
  • Suggestions
    • As suggested by this commission, in the year 2019, the Government of India established the Development and Welfare Board for DNTs, SNTs &NTs, also abbreviated as DWBDNCs.

Initiatives for DNT

• Dr. Ambedkar Post-Matric Scholarship for DNT Students
  • This Centrally Sponsored Scheme was initiated during 2014-15 for improvement of downtrodden students not covered under SC, ST or OBC.
• Scheme for Construction of Hostels for Boys and Girls from Nomadic Tribes:
  • This Centrally Sponsored Scheme commenced during the year 2014-15. It operates through the State Governments/ UT Administrations/ Central Universities.

Odisha Particularly Vulnerable Tribal Groups (PVTGs) Empowerment and Livelihood Improvement Programme (OPELIP-II)

3. Groundwater Contamination in India

Context:

The National Green Tribunal (NGT) recently expressed dissatisfaction over the Central Groundwater Authority’s (CGWA) response to the widespread issue of toxic arsenic and fluoride in groundwater across India.

Sources and Causes of Groundwater Contamination

• Natural Contaminants:
  • High concentrations of arsenic, fluoride, iron, and uranium occur naturally in some geological deposits. West Bengal and Assam are the most severely affected states for arsenic and iron pollution.
• Areas with Extreme Nitrate Pollution:
  • Maximum Percentages: Rajasthan (49%), Karnataka (48%), Tamil Nadu (37%).
• Increasing States:
  • Central and southern states, Maharashtra (35.74%), Telangana (27.48%), Andhra Pradesh (23.5%), and Madhya Pradesh (22.58%).
• Agriculture:
  • Heavy use of fertilizers, pesticides, and herbicides is known to drain poisonous chemicals into the water table.
• Industrial Waste:
  • Untreated industrial effluents often dispose into the ground-water sources with heavy metals and toxins.
• Urbanization:
  • Urban areas’ seepage leakage and waste management systems pollute the groundwater.
• Saltwater Invasion:
  • When the rate of groundwater extraction increases, salt water from the sea can seep into freshwater aquifers.

Chief Contaminants that Pollute Groundwater:

• Arsenic:
  • Seepage from industrial and mining discharges, as well as from fly ash ponds in thermal power plants, can introduce arsenic into groundwater.
  • Causes black foot disease because of arsenic exposure through water.
• Fluoride:
  • Causes neuromuscular diseases, gastrointestinal disorders, dental deformity, and skeletal fluorosis.
• Nitrates:
  • Methemoglobinemia and blue baby syndrome are caused due to excessive intake of nitrates in drinking water.
• Uranium:
  • Found in India in localised pockets at concentrations higher than that recommended by WHO.
• Radon:
  • In some pockets of Bengaluru, it is found that radon concentration in drinking water causes damage to lung tissues and raises the risk of lung cancer.

• Other Metals:
  • Lead, mercury, cadmium, copper, chromium, and nickel are known carcinogens and can contaminate water.

Way Forward

• Strengthen Regulatory Bodies
  • Strengthen regulation of groundwater, permit system for extraction of groundwater, sustainable agriculture, infrastructure investment; decentralised management.

Government Initiatives Related to Groundwater Management?

• Atal Bhujal Yojana
• Jal Shakti Abhiyan
• Aquifer Mapping and Management Programme (NAQUIM)
• Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
• Water (Prevention and Control of Pollution) Amendment Bill, 2024
• National Green Tribunal
• Central Pollution Control Board (CPCB)
• Environment (Protection) Act, 1986

5. SpaDeX Mission

Context:

A trial attempt to reach up to 15m and further to 3m is done. Moving back spacecraft to safe distance. The docking process will be done after analysing data further.

SpaDeX Mission

6. Combat Air Teaming System (CATS)

Context:

Ahead of Aero India 2025, which is scheduled to be held next month, Hindustan Aeronautics Ltd. (HAL) achieved a significant milestone by conducting the engine ground run of a full-scale demonstrator Combat Air Teaming System (CATS).

Combat Air Teaming System (CATS)

The HAL Combat Air Teaming System (CATS) is an Indian air teaming system with a manned fighter aircraft as the “mothership” and a set of swarming UAVs and UCAVs. It is under development by Hindustan Aeronautics Ltd. (HAL), National Aerospace Laboratories, Defence Research and Development Organisation, and Newspace Research & Technologies.

Objectives:

• High-Altitude Surveillance:
  • Acts as atmospheric satellites for reconnaissance.
• Autonomous Strike Capabilities:
  • Allows for precision strikes with less human error.
• Team Coordination:
  • Mothership aircraft controls UAVs/UCAVs in a coordinated manner.
• Reduced Risk:
  • UAVs can absorb enemy fire, reducing threats to manned aircraft.

Key Components:

• CATS Warrior:
  • Unmanned stealth platform with improved HAL PTAE-7 twin turbojet engine.
• CATS Hunter:
  • Low observability standoff, air-launched cruise missile driven by a HAL PTAE-7 single turboshaft/turbo-jet engine
• CATS ALFA:
  • Air Launched Flexible Asset Swarm (ALFA-S) carriage
• CATS Infinity:
  • Solar powered pseudo-satellite (HAPS) at ultra-high altitude

Applications

• These would be appropriate for military use e.g. reconnaissance and surveillance missions over adversary’s territory.
• Strategic Intelligence:
  • High-altitude, long-endurance surveillance with solar-powered drones.

Aero India 2025

Aero India 2025 will include air shows, a large exhibition area, and events such as the Defence Ministers’ Conclave and a start-up programme. The theme for the event is “The Runway to a Billion Opportunities,” with the first three days reserved for business and the last two open to the public.

• Location
  • Bengaluru
• Date
  • 10h-14th Feb 2025. 

7. INTERPOL’s Silver Notice

Context:

Silver Notice ‘more effective’ than MLAT, says CBI Director

INTERPOL’s Silver Notice

8. DigiBoxx: SaaS-based Digital Storage

Context:

DigiBoxx is the first swadeshi SaaS-based digital storage and sharing platform, which ensures the safety of customers’ digital assets and IP in India.

Software as a Service (SaaS)

Software as a Service (SaaS) is one of the cloud computing models, allowing users to access applications over the internet with a subscription or pay-as-you-go model. Under a SaaS model, the service provider maintains the software, infrastructure, and data, and the user needs to access the application.

Earlier, companies used to install software in the clients’ localised hardware so that they could use the application. So, this meant customers have to pay for the usage of the software beforehand, and also for the hardware on which the software would run.

• The key features of SaaS are
  • Subscription-based pricing:
    • Users pay a set monthly or yearly fee for access to the software.
  • Pay-per-use:
    • Costs depend on the consumption of software usage. It is like paying per number of transactions or data.
  • Scalability:
    • The dynamic provision of more resources will tackle more workload with SaaS applications.
  • Multi-tenancy:
    • This means one version of the application will be run by all the subscribers from host servers.
  • Automated update:
    • All the patches and updates for the software will automatically be updated by the service provider.
• Some examples include email, Calendaring, Office tools, customer relationship management (CRM), and project management software.
• SaaS offers a more cost-effective as well as more flexible way by which organizations will access software products without having to manage the infrastructure or software maintenance.

DigiBoxx

DigiBoxx is a cloud storage platform that provides secure and scalable storage solutions for individuals and businesses. Founded in 2020 by Arnab Mitra, DigiBoxx is India’s first indigenous digital asset management SaaS platform. 

• Launch
  • NITI Aayog launched DigiBoxx in 2020 as part of Atmanirbhar Bharat. 
• Data residency: 
  • DigiBoxx guarantees data residency and zero visibility of your PII data. 
  • PII Data: Personally identifiable information (PII) is any data that can be used to identify a person.
• Features: 
  • DigiBoxx has a feature called “DigiScan” that allows you to scan and save documents. 
  • DigiBoxx’s Megh3 is a digital backup solution that’s compatible with S3 storage. It offers unlimited scalability, security, and performance. Megh3 is designed for both individuals and businesses, and it allows users to store, protect, and retrieve data from any device. 
• Access: 
  • You can access your data from any device. 
• Customization: 
  • You can customize your storage as per your needs. 
• Storage: 
  • DigiBoxx offers 20 GB of free storage and low-cost plans for more space. 

9. Vadhvan Port Project

Context:

Vadhvan Port Project India´s largest stateowned container port, Jawaharlal Nehru Port Authority (JNPA), is aiming to become the country´s first port with a capacity of 10 million twenty foot equivalent unit (TEU), said UNMESH WAGH, chairperson of JNPA, and chairman and managing director of Vadhvan Port Project.

Vadhvan Port Project

10. India’s Mega Defence Deals

Context:

India is to sign four mega defence deals worth over Rs 1.5 lakh crore before the fiscal ends on March 31.

• Rafale-Marine fighter jets
  • The first deal is a Rs 63,000 crore contract with France for the direct acquisition of 26 Rafale-Marine fighter jets.
  • It includes 22 single-seat maritime jets, four twin-seat trainers for the Navy, weapons, simulators, crew training, and five-year performance-based logistics support.
• Scorpene diesel-electric submarines.
  • Another major deal with France is a Rs 38,000 crore one for three additional Scorpene diesel-electric submarines.
  • These deals are expected to be cleared by the Cabinet Committee on Security (CCS) before the end of the fiscal.
• HAL Prachand and ATAGS
  • The other two mega deals are for 156 indigenous Prachand light combat helicopters and 307 indigenous advanced towed artillery gun systems (ATAGS).
  • The HAL Prachand is an Indian multi-role light attack helicopter, designed and manufactured by Hindustan Aeronautics Limited under Project Light Combat Helicopter (LCH).
• The Advanced Towed Artillery Gun System (ATAGS)
  • The Advanced Towed Artillery Gun System (ATAGS) is a towed 155 mm/52 calibre howitzer that is being developed for the Indian Army by Armament Research and Development Establishment (ARDE), Tata Advanced Systems (TASL) and Kalyani Strategic Systems (KSSL).

11. Sonobuoys: Monitoring Undersea Activities

Context

Ultra Maritime, a U.S. company, is finalizing the assembly of U.S. sonobuoys for underwater submarine detection in India.

Sonobuoys: Detecting Submarines and Monitoring Undersea Activities

Sonobuoys are Small, expendable devices used in underwater acoustics. It’s primary function is to detect submarines and monitor other undersea activities such as marine life or underwater geological events.

Design and Operation

• Components:
  • Floating Radio Transmitter: Sends signals from the buoy to the surface or a receiving station.
  • Underwater Hydrophone: Captures acoustic signals from the surrounding water.
• Activation:
  • Activation occurs automatically from the impact of water.
• Hydrophone:
  • The hydrophone has the ability of recording underwater sound, this means recording noise originating from submarines or ships and maybe even marine animal noises.

Transmissions and Communications

Signal transmission is done in a sonobuoy device after it takes acoustic data that is transmitted, usually through radio, either a Very High Frequency (VHF) or Ultra High Frequency radio.

• Real-Time Analysis: These transmitted signals are analyzed in real time, giving immediate information about underwater activities.

Deployment Methods

• Deployment from Aircraft or Ships: Sonobuoys can be launched into the water from both aircraft and ships equipped with the necessary equipment to release them.

Sonobuoys are very important tools for naval operations, especially in anti-submarine warfare (ASW), and for scientific research into the underwater environment.

Banking/Finance

1. Bima Sugam

It’s an online portal wherein the customers can choose any of the plans given by numerous companies as most appropriate. It is developed by IRDAI.

• Features
  • It will help simplify and make digital the market place of insurance right from purchasing a policy, renewal, settlement of claims, and agency and policy portability.
  • It will guide customers in every form of query in regard to their insurance.
• Role
  • The proposed platform would serve as a single window for the policyholder to manage his/her insurance coverage.
  • It will provide end-to-end solutions for customers’ insurance needs i.e., purchase, service, and settlement.
• Project Vision and Objectives
  • It intends to develop an Amazon-like digital platform for insurance.
  • It should cover the whole experience of a lifetime of the lifecycle of an insurance product.
  • Its vision is global first to open up the field of insurance, democratize in India.
• Utility
  • It will allow insurance companies to access the validated and authentic data from various touch points on a real-time basis.
  • The platform will interface for the intermediaries and agents to sell policies and offer services to the policyholders among others and lessen paperwork.
• Shareholders
  • The life insurance companies and general insurance companies will own 47.5% shares each, and the brokers and agent bodies will hold 2.5% each in Bima Sugam Platform.
• Scope and Features
  • In the life insurance, health and general sectors.
  • Comprises of a large marketplace of comprehensive policy comparisons, purchase; manage
• Merging with Bima Trinity
  • Composite rural-inclusive insurance offering and female-powered agent network.
• Initial Release Plans
  • Ready for launch from 2022 with several envisioned date of launches
• Revised launch
  • Expected in Mid-2025
• Required Capital
  • It has been budgeted at Rs 500 Cr
• The source of financing
  • Insurance corporations will provide initial capital
• UPI moment
  • It is being called the “UPI moment” for the insurance industry.

2. Commercial Paper (CP) and Certificate of Deposit (CD)

Context:

CD rates declined by 20-30 bps and currently, are between 7.40% – 7.51%. This was compared to 7.10% – 7.20% in December.

Liquidity Crisis

• Systemic liquidity shortage touched ₹2 trillion mainly as RBI did not rollover buy/sell swap payments at maturity.

Impact on Borrowers

• Increasing borrowing cost and lagging incremental deposits relative to credit increase the liquidity pressure.

Possible Moves by RBI

• Liquidity infusion measures include purchase of Open Market Operations, buy-sell swaps, possible Cash Reserve Ratio reduction, and a multi-pronged approach.

Commercial Paper (CP)

• It is a short-term, unsecured promissory note issued by corporations for meeting working capital requirements.
• It has maturities ranging from 7 days to 1 year.
• Normally issued at a discount to face value and redeemed at par.

Certificate of Deposit (CD)

• A time deposit offered by banks and other financial institutions, with a fixed return over a specified period.
• Maturities of short-term CDs usually range from 7 days to 1 year, while those of long-term CDs may extend further.

Key Differences between CP & CD

Aspect	Commercial Paper (CP)	Certificate of Deposit (CD)
Issuer	Corporations, financial institutions.	Banks and financial institutions.
Security	Unsecured.	Secured against bank’s deposit base.
Purpose	Short-term funding for operations.	Resource mobilization for banks.
Risk Level	Higher, depends on issuer’s credit.	Lower, backed by bank’s credibility.
Market Participants	Corporates, mutual funds, investors.	Retail investors, institutions.
Interest Rate	Higher than CDs; market-driven.	Comparatively lower; fixed.

Economy

1. Economic Outlook for 2025

Global Economic Overview

Interest Rate Trends

• US Federal Reserve: A third consecutive quarter-point rate cut in December 2024 signals efforts to support growth amidst a slowing economy.
• Europe: The Bank of England and European Central Bank (ECB) retained their rates, reflecting challenges in managing stagnation and inflation.

China and Japan’s Influence

• China: Shifts in its bond market raise concerns about global economic instability, potentially mirroring Japan’s prolonged low-growth scenario (“Japanification”).
• Japan: Risk of further economic stalling underscores vulnerabilities in the global financial landscape.

Indian Economic Outlook

RBI’s Role in Shaping 2025

The Reserve Bank of India (RBI) faces critical challenges:

• Inflation Management:
  • Inflation target revised upward from 4.5% to 4.8%.
  • February 2025 monetary policy decisions, including potential rate cuts, could shape inflationary trends.
• Currency Depreciation:
  • Indian rupee weakened significantly, with foreign exchange reserves declining from $704.9 billion in September 2024 to $640.3 billion by December.

GDP Growth

• Projected at 6.6% for 2025, the economy must navigate global headwinds, domestic liquidity challenges, and inflationary pressures.

Regulatory and Sectoral Impacts

• Banking Sector Challenges:
  • Adoption of the expected credit losses accounting method could impact profitability.
  • Rising bad loans and stagnating credit growth hinder sectoral momentum.

Sectoral Challenges and Global Integration

Banking and Financial Sector

• Focus on adapting to regulatory changes and addressing structural inefficiencies.
• Global interconnectedness, particularly with China and Japan, increases exposure to external risks.

Global and Sectoral Transformation

• Broader shifts toward creative innovation and structural adjustments across sectors are anticipated, aligning with the transformative essence of the Year of the Snake.

Key Themes for 2025

Uncertainty and Adaptation

• Economic shocks, regulatory changes, and emerging trends demand resilience.
• Companies and policymakers must prepare for transformative global shifts.

Creative Transformation

• The financial sector is a primary focus for innovative adjustments.
• Broader emphasis on technology-driven and adaptive solutions across industries.

2. New Framework for MSME Loan Restructuring: FRR2.0

Introduction to FRR2.0
The government is designing FRR2.0 (Framework for Revival and Rehabilitation 2.0) to streamline loan restructuring for distressed Micro, Small, and Medium Enterprises (MSMEs). This framework aims to simplify processes and provide targeted relief measures for financially strained businesses.

Key Features of FRR2.0

Simplified Loan Restructuring

• Simplified procedures for MSME loan restructuring to ensure quick resolution of financial distress.
• Improved support for enterprises experiencing deep financial difficulties.

Enhanced Relief Measures

• Specific relief provisions to help businesses recover and sustain operations.
• Introduction of new credit lines and possible waivers on penalties for delayed repayments.

Scope of Framework

• Extension beyond the existing 2015-16 framework, which catered to MSMEs with loans up to ₹25 crore.
• Focus on developing tailored debt recovery and operational restructuring plans.

Importance of MSMEs in the Indian Economy

• MSMEs form the backbone of India’s economy, contributing significantly to GDP and employment.
• The sector faces ongoing challenges, including:
  • Difficulty in accessing credit.
  • Repayment constraints during financial downturns.
  • Limited relief options under current frameworks.

Existing Government Initiatives

2015 Revival Framework

• Focused on recovery plans for MSMEs with loans below ₹25 crore.
• Encouraged lenders to streamline operations for distressed businesses.

Subordinate Debt Scheme

• Provided financial support to MSMEs in financial distress, aiming to sustain operations and employment.

Proposed Impact of FRR2.0

Strengthened MSME Sector

• Enhances the ability of MSMEs to withstand financial pressures.
• Ensures their continued contribution to the economy and job creation.

Employment Protection

• Loan restructuring and extended credit lines could prevent the closure of businesses, safeguarding approximately 1.2 million jobs.

Revitalized Economic Fabric

• Strengthens India’s small business ecosystem, fostering economic resilience and growth.

Economic conditions and of MSMEs

Agriculture

1. Problems Faced by Indian Farmers

• Climatic changes:
  • Higher temperatures, changing weather, droughts, floods, and heat waves have made agriculture uncertain.
• Global level:
  • Due to climatic changes, in 2023, agricultural productivity was 21% less than what it would have been otherwise.
• Increasing global population:
  • About 2 billion people will be added in 2050. Food requirements will rise along with stress on the agricultural system.
• Shrinkage of resources:
  • Shrinking arid land and declining water availability will compromise farming’s sustainability.
• Food insecurity:
  • Approximately 690-783 million people globally are malnourished and may grow due to declining agricultural production due to unreliable weather patterns.
• Agriculture’s contribution to climate change:
  • Agriculture accounts for around 22% of all global emissions; deforestation, livestock’s methane emission, and excessive application of nitrogen-based fertilizers account for these emissions.

Renewable-Powered Sustainable Farming Way Forward

• Sustainability:
  • Sustainable agriculture is that which fulfills the food needs while conserving natural resources and ecosystems.
• Renewable Energy in Agriculture:
  • Some of the renewable energy solutions in agriculture include solar, wind, and biogas, making farming more resilient and eco-friendly.
• Biogas:
  • Waste to Renewable Energy: Biogas is produced by breaking down organic waste in an anaerobic environment.
• Uses of Biogas:
  • Biogas is a smokeless, environmentally friendly substitute for traditional stoves and reduces the climate change impact of agricultural activities.
• Transition to Regenerative Systems:
  • Renewable technologies can transition the agricultural sector from unsustainable, traditional practices to regenerative systems that sustain food production, restore the environment, and ensure long-term sustainability for future generations.

2. National Mission for Sustainable Agriculture (NMSA)

The National Mission for Sustainable Agriculture (NMSA) is the program that aims for making agriculture more sustainable, productive, and climate resilient. It was approved by the Prime Minister’s Council on Climate Change in the year 2010 and came into operation in the year 2014-15. It is under The Ministry of Agriculture.

Objectives

• Natural resources:
  • Conserved by soil and moisture conservation measures
  • Improve water use efficiency through proper water management
• Promote sustainable farming systems:
  • Through integrated farming, crop diversification, and crop-livestock farming systems
• Improving soil health:
  • Through soil health management practices based on soil fertility maps
• Developing farmer capacity:
  • Through training and other capacity development programs

Major Programmes of NMSA

Rainfed Area Development (RAD)

• Rainfed Area Development (RAD) is a scheme that aims to develop and conserve natural resources and farming systems in areas that are rainfed. It was launched in 2014-15.
• Objective: Maximizing farm returns, Mitigating the effects of extreme weather events, and Improving the quality of life for farmers.
• An area-based approach is used in the RAD scheme, which integrates crops with other activities such as horticulture, livestock, and fishery.

On-Farm Water Management (OFWM)

• Develops advanced on-farm water conservation equipment and technologies with efficient harvesting and management of rainwater. Launched in 2014.
• Water helps germinate crops, grow their roots, absorb nutrients, and support other activities of crop growth.
• Soil fertility is assured so that crop water usage isn’t hindered by limitations on nutrient and physical availability.
• Thus, the OFWM practices help to conserve water and recharge the groundwater.

Soil Health Management

• Encourages sustainable practices that maintain the health of soil based on a specific location and the type of crops that could be grown in those locations.
• A Soil Health Card (SHC) is a printed report that provides information about the health of a farmer’s soil. 
• Soil health indicators: The status of the soil’s health, including its pH levels, organic content, and macro and micronutrients 

Climate Change and Sustainable Agriculture: Monitoring, Modeling and Networking (CCSAMMN):

• It a program under the National Mission for Sustainable Agriculture (NMSA). The program’s objectives include: 
• Creating and sharing knowledge
  • CCSAMMN creates and shares information and knowledge about climate change in both directions, from land and farmers to research and scientific institutions, and vice versa.
• Supporting pilot blocks
  • CCSAMMN supports pilot blocks to demonstrate how rainfed technologies can be distributed.
• Coordinating with other programs
  • CCSAMMN coordinates with other programs and missions, such as MGNREGS, IWMP, RKVY, NFSM, NHM, and NMAET.
• Making production sustainable
  • CCSAMMN aims to make local production systems sustainable while managing climate change concerns.

NMSA Stratergies

• Implementation of sustainable paths for development
• Using energy-saving machinery
• Agri-insurance
• Credit services
• Availability of good quality crop, animal, and fish culture
• Control of pests
• Practices in agricultural sector
• Nutrient management
• Availability of Market
• Availability of Information

3. The Parali Project: From Waste to Sustainability

Parali is a byproduct of rice harvesting, which was traditionally burned in preparation for crop. This created pollution and a loss of income.

The Parali Project transformed parali into artisanal products, promoting the preservation of the environment and upliftment of society.

• Byproducts of Parali
  • It is converted into functional products, such as baskets, cookers, and minimalist home decor through traditional techniques such as weaving, weaving, and rope-making.
• Women Self Help Groups
  • The project trains, supplies raw materials, and opens market access to the women’s Self-Help Groups, which can be considered as a lifeline for them, furthering environmental causes.

Ecological Sustainability

• Crop Residues Reduces
  • The parali project does reduce crop residues burnt, keeping the soil health intact and helping to reduce harmful greenhouse gases emissions.
• Biodegradable
  • Since parali is biodegradable, it forms an eco-friendly alternative to plastic and synthetic items.
• Achievements
  • The project has prevented 250 million kg of greenhouse gases and saved INR 720 lakhs on nutrient content and reduced costs for farmers.
  • Already successful in Odisha and West Bengal.

Future Vision: Scaling Parali’s Potential

• Expansion
  • The project is expanding its uses beyond home decor, including biodegradable packaging and bioenergy production.
• People and Planet
  • The project deepens a connection between the people and the planet, enabling rural livelihoods and transforming parali from pollutant to resources with environmental as well as economic benefits.

Facts To Remember

1. Jaishankar to attend Trump’s January 20 swearing-in ceremony in Washington D.C.

• External Affairs Minister S. Jaishankar has been invited to represent the Government of India at the swearing-in ceremony of the U.S. President-elect Donald Trump on January 20.

2. Maha Kumbh begins today with Shahi Snan

• The 45-day Maha Kumbh, considered the biggest religious gathering in the world, is set to begin at Prayagraj in Uttar Pradesh on Monday with the Shahi Snan on the occasion of Paush Purnima at the Sangam, the confluence of the Ganga, Yamuna, and mythical Saraswati rivers.

3. Philippines deploys coast guard ship to counter China patrols

• The Philippines said it had deployed a coast guard ship to challenge Chinese patrol boats attempting to “alter the existing status quo” of the disputed South China Sea. Manila said Chinese patrol ships had this year come as close as 111 km west of the main Philippine island of Luzon.

4. Malala slams Taliban for instituting ‘gender apartheid’ against women

• Nobel laureate Malala Yousafzai slammed the Taliban for instituting a system of “gender apartheid” against women by disguising their crimes in the cloak of culture and religion.

5. Saikia, Bhatia take over as secretary and treasurer of BCCI

• Devajit Saikia’s and Prabhtej Singh Bhatia’s uncontested election as the secretary and treasurer, respectively, of the Board of Control for Cricket in India (BCCI) was formalised during the BCCI’s Special General Meeting (SGM) on Sunday.