Current Affairs 12 February, 2025

Daily Current Affairs Quiz
12 February, 2025

International Affairs

1. USAID Freeze

Context:

On January 20, 2025, President Donald Trump, on his first day in office for a second time, issued an executive order freezing USAID foreign assistance for 90 days.

Key Highlights:

• About 10,000 employees of the United States Agency for International Development, excluding essential personnel, have been notified that they will be placed on administrative leave at the end of Friday as President Donald Trump moves to dismantle the foreign aid agency.
• A substantial amount of USAID content wiped from the website besides simply putting up a notice about the freeze.
• A temporary restraining order from a federal judge until February 14, but this does not apply to the funding freeze.

What is USAID?

• Established in 1961, USAID is independent agency handling all U.S. foreign aid and development programs.
• Works in more than 100 countries, focusing on:
  • Economic Development.
  • Health & Education.
  • Humanitarian Assistance.
  • Food Security.
  • Climate Change.
  • Democracy & Governance.
• Budget
  • $44.2 billion in 2024 (0.4% of the U.S. federal budget).
• Major programs
  • PEPFAR (AIDS relief)
  • Feed the Future (food security)
  • Power Africa (electricity access)
  • Water for the World Act (sanitation)

Elon Musk and Marco Rubio in the Mix

• Elon Musk, top boss of the Department of Government Efficiency (DOGE), said he would move to close down USAID because he considered it a “criminal organization“.
• Marco Rubio suggests restructuring and not a total shutdown, being actually Secretary of State and current acting administrator of USAID.

Impact of Freeze on the World

• First recipients of USAID
  • Ukraine, Ethiopia, Jordan, Somalia, Congo, Afghanistan, Nigeria, Syria, Yemen, South Sudan.
• Heavy consequences for humanitarian:
  • UN warned without funding from USAID for HIV/AIDS will be tagged topple lose 6+ million people to die within four years.
• Programs in Haiti
  • Suffered $13.3 million aid freeze, and at the same time, the Haitian police force was offered $40.7 million showing much of selective exclusion.
  • Only 294 of 10,000 USAID employees will stay behind causing massive impact on implementation of the many programs.

USAID in India

• US AID grants to India have plummeted in the recent years owing to the objections raised by the Government regarding the disbursement conditions.
• In the last decade, India has received funding from the US in the tune of $1.5 million, which is roughly about 0.2% 0.4% of the global budget by USAID.
• Major areas of support in India ($79.3 million in funding 2024)
  • Health programs (HIV/AIDS, TB, maternal and child health, child health, immunization).
  • Economic Development, energy, water supply, sanitation.
• Effects of freeze on India
  • Little impact as India has not remained dependent on USAID for much.
  • Most health care projects would face disruption, but then the Indian government might fill the gap.
  • USAID has ordered that all projects in India stop work right now.

Political and Global Reactions

• Detractors opine that such an effort will end up isolating the U.S. and abandoning vulnerable nations.
• Former USAID admin Andrew Natsios called it as “political revenge” targeting Biden era programs.
• Experts warn that such actions will impact the U.S. interests vis a vis the developing nations, ultimately leading to greater global instability.

Conclusion

• For the world: The USAID freeze potentially disrupts essential humanitarian projects, especially in Africa, the Middle East, and conflict zones.
• For India: It will not be significantly impacted, but it likely will require government intervention for ongoing health projects to continue.
• The follow up will depend on whether the freeze remains intact 90 days from now or on whether the freeze is transformed into a permanent restructuring of U.S. foreign aid.

National Affairs

1. Appointment of Chief Minister

Context:

N. Biren Singh resigned as Chief Minister of Manipur on February 9, 2025. Neither the ruling BJP nor the Opposition party can stake any claim for the formation of the new government.

Key Highlights:

• Deadline for Assembly Session Carries On
  • The last session of the Manipur Assembly was held on August 12, 2024.
  • Article 181 stipulates that there should not be more than six months between two sessions in the Assembly.
• Legal & Constitutional Background
  • Article174(1) does not specifically reference dissolution of the Assembly on the basis of an infringement of the six-month gap.
  • The landmark ruling of the Supreme Court in 2002 stated (Bharatbhai Bhagwanjibhai v. State of Gujarat) that non-adherence to this limit by itself cannot be taken as sufficient cause for imposing President’s rule under Article 356.
• Appointment of Chief Minister
  • Article 164 states that Chief Minister shall be made by the bill governor.
  • This addresses especially the situation when a party has gotten major share of votes from the assembly elections, it’s appointed as the new Chief Minister of the state.
• Governor’s Role
  • Under Article 164, the  Governor plays a key role in inviting the leader of the majority party or coalition to form the government. 
• President’s Rule (Article 356)
  • If present political maneuvers continue, the Governor might send a message to the President of India that there exists both the possibility and basis for constitutional crisis.
• Following this, a proclamation of President’s Rule would mean
  • The state government shall remain kept in abeyance.
  • The Governor would take upon himself the administrative powers under Union Government orders.
  • It could either prorogue or dissolve the Assembly.

Source: The Hindu

2. COP29

Context:

COP29 taking place in Baku, Azerbaijan, has been labeled the “Climate Finance COP“ for facilitating negotiations on key aspects of Article 6 of the Paris Agreement.

Key Highlights:

• Article 6.2 allows the transfer across borders of Internationally Transferred Mitigation Outcomes (ITMOS) in layman’s terms, carbon credits for the purposes of meeting Nationally Determined Contributions (NDCs).
• Thus, the system benefits the developing countries by bringing in investments, fostering technology transfer, and supporting emission reductions.

Why Article 6.2 Is Important for India?

• India, now recognized as the world’s third largest GHG emitter, is indeed afflicted by the question of how to sustain growth while complying with climate obligations.
• Among its aims in combating climate change is 45% reduction in emissions intensity by 2030, whereas finance and technology gaps are significant hurdles.
• Prior to COP29, India pressed the developed countries to mobilize $1 trillion per year as climate finance for the transition of developing countries to low carbon economies.

India’s Carbon Trading and the Market Readiness

• India has already set the path for international carbon trading:
  • Carbon Credit Trading Scheme (CCTS) (being operational since 2023) aims for a transparent carbon market.
  • With experiences from Renewable Energy Certificates (REC), Energy Saving Certificates (ESCerts), and the Clean Development Mechanism (CDM), India is well capable of ITMO transactions.
• Main sectors likely to cooperate in ITMOs:
  • Renewable energy, energy storage, green hydrogen, carbon capture, and sustainable aviation fuel.
  • Agreements with South Korea, Japan, and the EU will bring in top notch technology and investment.

India’s Leadership Potential in South-South Partnership with Africa

• Besides the conventional North South funding arrangements, India is quite positioned to take a lead in the South South partnership particularly with African nations.
• Why Africa?
  • Huge renewable energy potential with little resources to conduct large scale projects.
  • Severe climate vulnerabilities in agriculture and water security.
  • India has already established quite strong trade and development ties with Africa, thus collaboration can be easy.
• Mutual benefits are incremented
  • Africa gets financing, technology, and expertise to pave the way for a sustainable future.
  • In turn, India gets to expand its carbon market footprint and exert its leadership in clean energy globally.

Risks & Challenges for India

• Developed countries may try to pass the climate burden to India
• Instead of conservation efforts to reduce emissions, they may just buy cheap ITMOs from India and delay their transitions.
• India also might be in danger of selling too many credits, which in turn may hold its own progress in question with the deliberation upon climate goals.
• The need now arises for transparency and equitable credit sharing:
  • In the absence of an efficient governance framework with clearly articulated rules and oversight, the ITMO trading may effectively turn out to be either inefficient or even exploitative.
  • India should negotiate fair benefit sharing agreements and side step loopholes that would unjustly counteract its own sustainability goals.

The Way Forward

• Article 6.2 represents a land mine of opportunity for India as it enables unlocking climate finance, building green infrastructure, and creating international cooperation.
• But careful governance, fair allocation of credits, and strategic partnerships will ensure that India reaps the benefits without compromising its wider long term climate goals.

3. Cybersecurity

Context:

THE ASSAULT ON KAVERI 2.0: Kaveri 2.0 is a property registration portal in Karnataka, which saw a DDoS attack in December 2024, so the attacks ramped up in January and went on into February 2025. The system was essentially crippled using AI-powered bots; property registrations in the state were halted for days.

Key Highlights:

For this probably, some revenue loss has occurred, for sure, to the state government of Karnataka.

Timeline of Cyber Attacks on Karnataka Infrastructure Karnataka is known for cyber security breaches:

• 2017: WannaCry Ransomware Attack at State Data Centre.
• 2019: ₹11.5 crore taken from the e-procurement portal.
• 2o22: Cyber attack against NIMHANS (National Institute of Mental Health and Neurosciences).
• And the cyber security deficiencies were not addressed up till now.

• Poor Response
  • No Coordination Initially, although the state cyber crime police were not scrambled into action, a complaint was received only on February 7, after the attack facilitated relative calm.
  • The e-Governance Department treaded cautiously with regard to involving law enforcement, delaying the identification of the attackers. The trace of some IP addresses linked to the attack was generated, but early engagement of law enforcement would have improved real-time responses.
• Flawed Cyber Security Framework for Karnataka
  • Run by bureaucrats, the Cyber Security Committees of Karnataka function without police representation whatsoever.
• In contrast, Indian national security architecture consists of
  • Indian Cyber Crime Coordination Centre (I4C) connected with the Home Ministry.
  • National Critical Information Infrastructure Protection Centre (NCIIPC) protects the critical infrastructure.
  • Mechanisms like these are essentially required for Karnataka but will be effective only if developed under clearly defined Standard Operating Procedures (SOPs) to mitigate such attacks in times ahead.

4. Su-57 fighter Jet

Context:

Rosoboronexport and the United Aircraft Corporation (UAC) offered India a partner on the Su-57, Russia’s fifth generation fighter aircraft (FGFA). The offer envisions localizing production in India, perhaps at Hindustan Aeronautics Ltd. (HAL), with the start of production possibly as early as 2025.

Key Highlights:

Fifth generation technologies for India.

• Russia offers the following key technological developments:
  • Engines
  • Active Electronically Scanned Array (AESA) radars
  • Optics
  • AI elements
  • Software communication systems
  • Aerial weapons
• Such technology could also help the Advanced Medium Combat Aircraft program for India.
• No sanction risks to India
  • Russia ensures India of no sanction or supply disruptions.
  • The representatives are assuring that there will be long term cooperation for uninterrupted access to parts, components, and upgrades.
• Historical defence cooperation
  • Russia recounts its 60 years of defence cooperation with India, especially with regard to aircraft production.
  • These projects include the co-development and assembly of the Su-30MKI in India.

Possible implications for India

• Strategic advantages
  • Access to cutting edge fighter jet technology
  • An uplift for the Indian domestic aircraft industry, especially AMCA
  • Stronger Indo Russian defence ties
• Challenges and considerations
  • India’s interest in western fighter jets (F 35, Rafale, etc.)
  • Balancing ties with the U.S. and European defence suppliers
  • Challenges associated with integrating Russian technology into the existing Indian infrastructures and funding them.

Russia’s offer to localise the Su 57 and transfer technology holds unique value for India.
India will have to make an assessment of these and tie them to its long range strategic goals regarding the Make in India initiative, international partnerships being built in the background, and the changing geopolitical environment.

5. Parliamentary Updates

Disbursement of Money to Sahara Group Depositors

• Amount of ₹2,025.75 crore disbursement to 1.15 million depositors of the Sahara Group of Cooperative Societies by January 28, 2025.
• Refunds were made via CRCS Sahara Refund Portal.

PACs Allowed to Fuel Retailing

• Twenty six Primary Agricultural Credit Societies (PACs) have been selected for the establishment of petrol and diesel outlets from a total of 286 applications by Oil marketing companies.
• PACs can now be permitted by the Government to operate fuel retailing and LPG distributorships.

AI Centers of Excellence (CoE) Announced

• Four most relevant institutions for AI research are as follows:
  • AIIMS Delhi Health
  • IIT Delhi Sustainable Cities
  • IIT Kanpur Agriculture
  • IIT Ropar Agriculture

Recovery of ₹3.58 Trillion under Insolvency Process

• 1,119 of such cases have been resolved under the IBC as on December 31, 2024.
• 2,707 cases have ended in orders of liquidation.
• Final reports submitted in 1,274 cases.

Important points by finance minister during Budget Discussions

• Global Economic Indecision
  • Conflicts in West Asia, Russia Ukrainian war, slow growth in global GDP and inflation challenges.
• Priorities emphasized for Budget 2025 26 include
  • Growth on faster track, including development in all forms increasing investment from the private sector ramping up on the ground task consumption boost employment led growth export shadow and manufacture push, capital expenditure.
  • ₹15.48 trillion has been forecast for FY26 (4.3% of GDP) in Capital Expenditure (CapEx above).
  • The fiscal deficit target is pegged at 4.4% of the GDP.
• Inflation & Rupee Stability
  • Inflation continues to remain below 2.6% target range.
  • Fluctuation of the rupee is because of global and domestic factors.

6. The NITI Aayog Report on Strengthening State Public Universities (SPUs)

Major Issues Pertaining to State Public Universities (SPUs)

• Crisis of Quality
  • SPUs constitute 80% of higher education in India, but they rather lag in academic standard as compared to premier institutions such as IITs and IIMs.
• Funding Issues
  • The problems are not just due to lack of funds but also poor utilization of those funds in higher education.
• Spending Disparities
  • High literacy states like Kerala, Tamil Nadu, Maharashtra, Andhra Pradesh, and Telangana spend more per student on higher education.
  • Some of the highest education spenders (Bihar, J&K, Manipur) are not particularly known for academic excellence, calling into question the efficiency of fund utilization.
• Decreasing Education Expenditure
  • State spending on education as a percentage of GSDP has fallen down over the last decade.
  • The total Centre+State spending on education is below the NEP target of 6% GDP.

Important Policy Recommendations of the NITI Aayog

• Governance & Autonomy
  • Fee autonomy thus providing financial independence to universities.
  • Framing of a National Research Policy that will significantly affect improving research outcome.
  • Establishment of truly multidisciplinary education and research universities, which by their very nature tend to integrate research with teaching.
• Funding & Infrastructure
  • Setting up of a dedicated infrastructure finance agency for the development of universities.
  • Granting tax exemptions and CSR funding for SPUs.
• Policy & Implementation Roadmap
  • 80 policy prescriptions and more, classified into short , medium , and long time goals.
  • More than 125 performance indicators to track success.
  • Recommendations draw from consultations with stakeholders across 20+ states and 50+ SPUs.

Challenges Towards Implementation

• Capacity and Resource of State
  • The states may not match the financial and institutional capacities to carry out large scaling reforms.
  • Industries and universities should move away from mere teaching, to meaningful research.
• Possibility of Increasing Fees
  • Fee autonomy may improve finances but could at the same time exclude weaker economic students.
• Need for Support from the Centre
  • Given the financial constraints imposed on the states, the Centre ought to take the lead in funding higher education reforms initiated.
• Lay Implications on the Broader Context
  • Higher education quality constitutes India’s demographic dividend and global competitiveness.
  • In the absence of reforms, there is a danger that SPUs might plunge further down the lane in terms of research and academic standards.

7. India Energy Achievements & Goals

India’s Energy Transition and 2030 Goals

• Target Entry to 500 GW Renewable Energy
  • India plans to add 500 gigawatts (GW) of renewable energy capacity by 2030.
  • Solar capacity has increased 32 times in the last decade.
• Indian Railways’ Net Zero Target
  • The Indian Railways have put plans in place for achieving net zero carbon emissions by 2030.
• Green Hydrogen Production
  • Aim to produce annual 5 million metric tonnes by 2030.

Ethanol Blending and Sustainable Fuels Initiatives

• 19% Ethanol Blending Achieved
  • Ethanol blending has saved foreign exchange, generated farmer revenue and reduced CO₂ emissions.
• Target of 20% Ethanol Blending by October 2025
  • Earlier the target was 2030 but now accelerated to 2025.
• Initiative Around E20 Petrol & E100 Fuel
  • E20 petrol (20% ethanol blend), now available at 15,600 outlets.
  • E100 fuel launched in 2024 comprising 93 93.5% ethanol, 5% petrol and 1.5% co solvent.
• 500 Million Metric Tonnes of Sustainable Feedstock
  • Strengthens India’s bio fuel production capabilities.

Manufacturing Energy and Resource Exploration

• Push into Solar PV Manufacturing
  • Budget provisions for enhancing the policies of solar PV cell production & battery storage.
• Undiscovered Hydrocarbon Reserves
  • India today has 10% of its entire 3.36 million sq km sedimentary basin currently explored.
  • Govt aims to increase exploration to 16% by 2025 and 1 million sq km by 2030.
• India Today is a Petroleum Refining Hub
  • Currently it is the 4th largest refining hub in the world.

Banking/Finance

1. Foreign Direct Investments in Government Securities

Net Inflows into Fully Accessible Route (FAR) Securities

• February 2025 saw a total of ₹4,530 crore net inflow so far.
• During January 2025, there was a net inflow of ₹14,430 crore.
• Fresh inflows of ₹9,000 crore on January 31 came right after Bloomberg’s inclusion of India in the Emerging Market Local Currency Government Index.

What is FAR?

• The Fully Accessible Route (FAR) is a framework that permits non residents to invest in certain Indian government securities without restriction on the quantum of the investment.
• It was brought into force by the RBI in March 2020 to enhance foreign presence in the bond market in India.
• Most of the securities designated FAR are eligible for JP Morgan’s Government Bond Index Emerging Markets (GBI-EM-GD).

What is the Structure of FAR?

• RBI designates eligible government securities (G secs) for FAR investments.
• No investment ceilings on eligible investors unlike other routes where ceilings exist.
• Every new issue of 5 year, 10 year, and 30 year G secs will automatically be designated as FAR securities.

Reasons That Prompted FAR in the First Place?

• To improve foreign investment into Indian bonds, improve liquidity, and reduce costs of borrowing to the government.
• To facilitate India’s entry to the global bond indices so that its debt market becomes easily accessible for foreign investors.

Other Routes for Foreign Investments in Bonds

• The Medium Term Framework (MTF)
  • A Foreign Portfolio Investment (FPI) regime for Central and State Government Securities (G secs and SDLs) with specific limits is imposed.
• Voluntary Retention Route (VRR)
  • An arrangement that gives investors flexibility in that they must retain a share of their investment over a certain period.

2. Sebi Cracks Down on Stock Price Manipulation

What is Stock Manipulation?

Stock manipulation” refers to the act of intentionally influencing the price of a stock by deceptive means, such as spreading false information, making large, coordinated trades, or using other tactics to artificially inflate or deflate the price to gain personal profit, which is considered illegal.

Intervention of Sebi in LSIL and PIFL

• LSIndustries Ltd (LSIL) and Pacheli Industrial Finance Ltd. (PIFL) saw unreasonable take offs of stock prices in spite of weak financials.
• LSIL:
  • No revenue but a market cap of ₹5,500 crores.
  • The price skyrocketed over 1,000% in 48 trading days and has now declined by 20.98% in the last month.
• PIFL:
  • A consultancy firm with nominal earnings continues to remain under upper circuit limits since December.

Sebi’s New Way of Surveillance

• Sebi acted before an impending crash, suggesting its regulatory response was proactive.
• External Data Platforms Used
  • In the past, Sebi would largely depend on alerts from its internal surveillance system for identifying potential manipulations.
  • But it started using an independent website called Screener.in to cross check stock price movements against validation data.
• Tools for Advanced Monitoring:
  • Speedier surveillance has been put in place to detect the stocks under surveillance on expiry of price benefits unjustified by fundamentals.

Some Important Commonalities in Investigations

• Both companies have not had significant operating revenues for the past three years.
• The price rise of the stock went against any rational market notion and forced the hand of regulators.
• Companies were already under extra surveillance by the BSE, intended for high risk stocks.

Implications and Takeaways for Investors

• Retail investors must look at fundamentals and not trade on hope and speculation.
• Regulatory authorities are tightening the noose, allowing less and less room for price manipulation.
• The crackdown may extend to other stocks showing such inflated prices, which will hinder speculative trading patterns.

Economy

1. Public Sector Undertakings (PSUs) Disinvestment

Public Sector Undertakings (PSUs)

Public Sector Undertakings (PSUs) are government-owned companies that operate in India’s energy, manufacturing, finance, and telecommunications sectors. They are also known as Public Sector Enterprises (PSEs). 

How do PSUs impact India? 

PSUs are vital to India’s economic and social development, They contribute significantly to GDP, They drive infrastructure growth, They provide employment opportunities, and They promote socio-economic welfare. 

A Historical Context: Performance of PSUs since 2019-20

• Decrease in dividends
  • PSU dividends paid to the government fell to ₹0.35 trillion in 2019 20 which is 19% less than one year previous.
• Weaker capital outlay growth
  • The growth of PSUs in respect of capital outlay was a mere 2% reaching ₹8.51 trillion.
• Less government support
  • The budget allocation of support to PSUs was reduced by 7%, leading to a 25% share in the total capital outlay of PSUs.
• Disinvestment downtrend
  • Receipts from PSU stake sales plummeted to ₹0.5 trillion, registering a decline of 47%.

Comparison of PSUs in Action between 2020-21 and 2024-25

• Stagnation in capital outlays
  • The capital outlay of PSUs registered a growth rate less than 2% CAGR.
• Declined Internal & Extra Budgetary Resources (IEBR)
  • The resources generated by the PSU declined with a 10% CAGR.
• Increased dividends to the Government
  • While PSUs have not been on solid footing financially, dividends paid to the Government increased in 9.5% CAGR.
• Increased government support
  • Capital infusion by the government into PSUs grew at 21% CAGR, increasing their share of PSU capital outlay to 59% (from 25% five years ago).
• Further slowdown in disinvestment
  • The decline in the government’s share sales in the PSUs by 8% over a period of five years is manifest.

Comparison With the First Term of the Modi Government (2014-19)

• Higher Investments in PSUs & IEBR
  • A capital outlay increase of 23% CAGR.
  • An IEBR increase of 26% CAGR.
• Lower Dividend Payouts
  • The average growth of the PSU dividend payments is 2% CAGR.
• Aggressive Disinvestment
  • Growth rate of sales proceeds from government disinvestment is 9% CAGR and render production for fiscal needs.
• Greater Capital Support from the Government
  • Support from the government through budget for equity and loans grew by 26% CAGR.

Why the Change?

• Strategic Disinvestment Policy (2021) Was Not Implemented
  • The stated aim was to generally privatise or close unviable PSUs while minimising governmental interference in strategic sectors.
  • Privatisation of PSUs was stalled only Air India, Neelachal Ispat and Ferro Scrap were actually sold.
  • The government fairly intervened by pumping new money into some PSUs on the brink of failure, whereby reversing a previously held decision on privatisation.
• The New Approach for Monetisation
  • The government switched from direct asset sales to monetisation and leasing of PSU assets to raise the needed funds.
• Lack of Value Creation from PSUs
  • There are no practically visible signs of improvement in the dividend payout or generation of extra budgetary resources (EBR) from these PSUs against the backdrop of increasing capital outlay and government support.
  • Inefficiency is evident from a growing dependence on government funds.

Budget 2025 26: Indicators of Change or Continuity?

• Higher Dividend from PSUs Expected
  • The government wants to press these PSUs for higher dividends.
• Disinvestment Receipts Marginally Higher
  • There has been no push for stake sales, hence this has been a cautious trend.
• Other Trends Point to Decline in Direct Capital Support to PSUs
  • This is a notable change, and the PSUs are to generate some more capital on their own.
• Return to Strategic Disinvestment Is Not So Clear
  • There are no clear aggressive privatisation plans at the moment, despite earlier commitments.

Although the government announced a strategy in 2021, it remains undecided regarding PSU disinvestment. The reliance on PSUs for dividends continues, while stake sales are slowly progressing.

Agriculture

1. NABARD’s Export Pathshala Workshop

Context:

NABARD, in collaboration with Palladium Consulting India Pvt Ltd, organized a three day workshop in order for Odisha’s Farmer Producer Organisations (FPOs) to expand their businesses globally.
The workshop convened policymakers, financial institutions, exporters, and supporting organizations to strengthen India’s agri export ecosystem.

Major Objectives & Training Focus

• Capacity Development
  • With this aspect, the Export Pathshala initiative attempts to bring smallholder farmers directly to international buyers.
  • According to better price realization and sustainable growth for the farmers.
• Various Practical Training Topics
  • Import Documentation & Compliance: Meeting the international trade needs.
  • Quality Standards & Packaging: Export preparedness of agricultural products.
  • Post Harvest Management: Produce quality maintenance techniques.
  • Value Chain Development: Export income of fruits, vegetables, and spices.
  • Risk Mitigation & Export Insurance: Handling challenges in perishables exports.

Key Stakeholders and Expert Contributions

• Sessions were presided over by experts from NABARD, APEDA, World Trade Centre, Spices Board of India, Bank of Baroda, and industry exporters.
• The last day was marked by successful FPO leaders sharing their insights.

Strategic Roadmap for Agri Exports

• NABARD & Palladium’s action plan encompasses different steps like:
  • To identify clusters for export related production.
  • For Enterprises FPO, leverage export support structure.
  • Collaborate with exporters to strengthen supply chains.

Farmer Producer Organizations (FPOs)

2. Union Budget 2025-26: Agriculture and Rural Development

Context:

Update on a previous year’s initiators with continuation of schemes which are well functioning.
The reduced gap between Budget Estimates (BE) Revised Estimates (RE) signifies better performance in implementation.

Resource Allocation Sector wide

• Agriculture, animal husbandry, fishery, food processing, public distribution, rural infrastructure, and employment got from 3% to 6% higher allocations.
• Consumer Affairs reduced by 58% because of the disappearance of the price stabilization fund.
• Ministry of food processing got 33% more, mainly for micro food processing at household level.

Key New Initiatives and their likely Impact

• Dhan Dhanya Krishi Yojana (₹ 100 lagging districts)
  • It focuses on agricultural productivity, credit access and infrastructure.
• Rural Prosperity and Resilience Programme
  • It will focus on underemployment and migration, aiming to address it through skilling, technology integration, and revitalizing economies.
  • Needs to be district specific plans because of varied needs and level of infrastructure in each district.

Pulses Self Sufficiency Mission (₹1,000 crore)

• Targets tur, urad, and masoor production.
• Strategy: tech driven productivity improvement (price support through procurement).
• Challenge: Open ended procurement risks (estimated cost ₹13,000 ₹19,000 crore according to market condition).

High Yielding & Climate Resilient Seeds Initiative

• Intended to improve seed availability and affordability.
• Continuation of efforts in climate resilient farming from the past.

Value Chain Development for Fruits & Vegetables (₹500 crore)

• Last year’s effort on vegetables alone to extend it this year to include fruits.
• Goal: Efficient supply chains & price stability for farmers.

Sector Specific Missions

• Deep sea fishing: Continuation of shrimp farming program from the previous year.
• Cotton productivity: Much needed reform long overdue.
• Makhana Board in Bihar: Local agricultural processing is given a fillip.

Structural Challenges in Urgent Attention

• Agricultural Market Malfunction
  • The density of regulated markets is varying from state to state. (Punjab: 119 sq km per market vs Meghalaya: 11,215 sq km).
• All India average
  • 487 sq km per market which is not even close to the 80 sq km target recommended by National Farmers Commission (2004).
• The very urgently due GrAM scheme (₹2,000 crore under NABARD) for upgrading of 22000 rural markets needs fast track processing.

State Coordination and Governance Deficits

• Agriculture and rural development are State subjects as per Constitution.
• Proposal for an Inter-State Council (as GST Council) will give impetus for better coordination between Centres and states.

Facts To Remember

1. Union Minister Giriraj Singh inaugurates Bharat TEX 2025 in Greater Noida 

Bharat TEX 2025, India’s largest global textile Event was officially inaugurated by Minister of Textile, Giriraj Singh at India Expo Mart in Greater Noida today.  

2. WHO faces communication challenges on bird flu after US withdrawal

World Health Organisation (WHO) stated that communication with the US on the bird flu outbreak has become difficult. This is due to the US withdrawal from the UN health agency.

3. India’s Net Direct Tax Collection Rises 14.69% to ₹17.78 Lakh Crore

Country’s net direct tax collection exhibited growth of 14.69 percent year on year to over 17 lakh 78 thousand crore in the current financial year.