Current Affairs 14 January 2025

Daily Current Affairs Quiz
14 January, 2025

International Affairs

1. China-Russia Relations

Context:

Trade between China and Russia reached a record high last year, reflecting strong economic ties between the countries despite Western sanctions on Moscow. Combined imports and exports with Russia totalled $244.8 billion in 2024, according to China’s General Administration of Customs, up from $240.1 billion in 2023

History of China-Russia Relations

• Cold War
  • Russia and China were cold to each other during the Cold War. The relationship was characterized by mistrust and doctrinal differences.
• Mikhail Gorbachev
  • The thaw came in 1989 when Mikhail Gorbachev became the first Soviet leader to visit China.
• Treaty of Good-Neighbourliness and Friendly Cooperation
  • In 2001, the two countries signed the Treaty of Good-Neighbourliness and Friendly Cooperation, paving the way for expanding economic and trade ties.
  • The treaty was extended in June 2021, citing that “Russian-Chinese coordination plays a stabilising role in world affairs“.

Current Developments in China-Russia Relations

• Russia’s 2014 annexation of Crimea in Ukraine led to a sharp downturn in Russia’s ties with the US, NATO, and European Union (EU).
  • This was also the turning point in Russia’s ties with China, which revealed the possibilities, potential, and the limits of the relationship.
• Sanction on Russia
  • When the US, EU, and Australia imposed sanctions on Russia, Russia turned reflexively to China.
• Russia-China Trade Deal
  • Russia opened its doors wide for Chinese investments, and struck a USD 400 billion deal for Gazprom, the Russian state monopoly gas exporter, to supply 38 billion cubic metres (bcm) annually to China for 30 years from 2025.
  • Since 2016, trade between the two countries has gone from USD 50 bn to over USD 147 bn.
  • China is now Russia’s largest trading partner.
• Ukraine Crisis
  • The Ukraine crisis has been an opportunity for each country to express solidarity with the other’s grievance against the US.

Interest Differences between Russia & China

• The China-Russia compact is not yet a formal security alliance against the West, nor an ideological partnership.
  • Russia’s Interest
    • Russia’s main security interests lie in Asia, China’s are in Europe.
    • Russia is not willing to become China’s junior partner due to its smaller economy and strong memory of its lost superpower status.
  • China’s Interest
    • For China, war in Ukraine is the least suitable of options.
  • Ukraine’s Interest
    • For Ukraine, it is a crucial link in china’s BRI project.

Consequence of the Ukrainian War

• The U.S. and its allies froze $300 billion of Russia’s foreign exchange reserves as well as imposed a SWIFT ban on Russian banks involved in dual-use goods.
• China’s Anxiety
  • China, holding about $770 billion of its reserve in U.S. treasuries, fears similar financial penalties in case tensions with the West rise.

Dual Hegemony Fears

• Russia and China’s Concern
  • Both Russia and China are concerned with the dominance of the U.S. dollar in international transactions and the SWIFT system.
  • Both countries have attempted to de-dollarize their economies and develop alternative payment systems, such as China’s Cross-Border Interbank Payment System (CIPS).

SWIFT System

• Founded in Belgium in 1973, operated by the G-10 central banks.
• The banks and financial institutions used it for safely sending and receiving information on monetary transactions.

Problem Under Dual Dominance

• Trade Dependency
  • Russia is the net minor beneficiary of the trade with China but has a biased trade relation with China.
• Energy Dependency
  • More than 70 percent of Russia’s export to China in fossil fuel leaves Russia highly exposed to China’s change in its energy requirement.
• High-priority Goods Importation
  • In 2023, 89% of Russia’s high-priority goods were imported from China.

Policy India should Follow?

• Neutral Approach
  • India should treat its relations with both countries and the US separately.
  • A less confrontational relationship between the two would be a big relief for India.
• Trilateral Cooperation
  • India should encourage mutually beneficial trilateral cooperation between Russia, China, and India.

2. AI Chips

Context:

The U.S. unveiled new export rules on advanced computing chips used for artificial intelligence, aiming to facilitate sales to allied nations and further curb access to countries like China. The new rules update controls on chips, requiring authorisations for exports, re-exports and in-country transfers. 

What are AI chips?

• About
  • AI chips are designed with specific architecture and have integrated AI acceleration to support deep learning-based applications.
  • Deep learning, commonly known as Active Neural Network (ANN) or Deep Neural Network (DNN), is a subset of machine learning and falls under the broad umbrella of AI.
• Functions
  • It combines a series of computer commands or algorithms that stimulate activity and brain structure.
  • DNNs have a training phase wherein it learns new capabilities from existing data.
  • DNNs can then inference, applying these capabilities learned during deep learning training to make predictions against previously unseen data.
  • Deep learning can make the process of collecting, analysing, and interpreting vast amounts of data much faster and easier.
  • Such chips, by their hardware architecture, complementary packaging, memory storage, and interconnect solutions for AI, offer the possibility for the integration of AI in every kind of spectrum of applications through which data would be turned into information and from there into knowledge.
• Types of AI Chips
  • Designed for all kinds of divergent AI application
  • Application Specific Integrated Circuits (ASIC), Field Programmable Gate Arrays(FPGA), CPU and GPU.
• Applications
  • The AI applications have ranged from natural language processing to computer vision and robotics, from network security, in the vast automotive, IT, healthcare, and retail segments.
• Reason for the Growth
  • The main growth driver of this market is increased data centre uptake of AI chips.
    • A data center is a physical facility that stores, processes, and distributes data and applications for a business. 
  • Moreover, the increasing demand for smart homes and cities and the investment in AI start-ups is expected to fuel the growth of the global AI chip market.

Importance of AI Chips compared to General Purpose Hardware?

• Faster Computation
  • Artificial intelligence applications typically require parallel computational capabilities in order to run sophisticated training models and algorithms.
  • AI hardware provides more parallel processing capability that is estimated to have up to 10 times more competing power in ANN applications compared to traditional semiconductor devices at similar price points.
• High Bandwidth Memory
  • Specialized AI hardware is estimated to allocate 4-5 times more bandwidth than traditional chips.
  • This is because AI applications require much more bandwidth between processors due to the need for parallel processing.

3. Greenland

Context:

Greenland Prime Minister Mute Egede said, the country is looking to strengthen its defence and mining ties with the United States, albeit on its own terms, following renewed interest from U.S. President-elect Donald Trump.

National Affairs

1. Z-Morh tunnel

Context:

Prime Minister Narendra Modi, inaugurated the strategic Z-Morh tunnel in Sonamarg area of Ganderbal on 13 January 2025.

Key Highlights:

• Location
  • The tunnel is located in Ganderbal district and is crucial for maintaining Sonamarg, a popular winter tourist destination.
• Strategical Significance
  • The road to Sonamarg, part of the Zojila tunnel project, is impassable due to snow avalanches, making it crucial for all-weather connectivity to Ladakh, allowing quick access for military personnel.
  • Tunnel built under Thajiwas Glacier avoids landslide-and avalanche-prone pockets of road.
• Status
  • The Z-Morh will lead towards Asia’s longest tunnel, the Zojila tunnel, which will cut through the Himalayan range at Zojila Pass to reach the Kargil district in Ladakh.

2. Comptroller and Auditor-General (CAG)

Context:

The Delhi High Court questioned the Aam Aadmi Party (AAP) government for “dragging its feet” on the tabling of the reports of the Comptroller and Auditor-General (CAG) over the city administration before the Assembly.

Comptroller and Auditor General (CAG) of India

Constitutional Mandate

• The CAG is the head of the Indian Audit and Accounts Department (IA-AD), which oversees financial systems at the central and state levels.
• The CAG is one of the pillars of India’s democracy, along with the Supreme Court, Election Commission, and UPSC.

Appointment and Term

• Appointment
  • The President of India, under a warrant, appoints the CAG, with tenure for six years or until one reaches the age of 65, whichever earlier.
• Removal and Resignation
  • It can resign or be removed with a letter addressed to the President.
  • Removal should follow the procedures that apply for impeachment of a Supreme Court judge.
    • It calls for a special majority in both Houses of Parliament where there is established misbehavior or incapacity.
  • The CAG cannot be removed at the pleasure of the President.
• Post-Term Restrictions
  • Ineligibility for further office under Indian or state governments.
• Salary and Expenses
  • Same as a Supreme Court judge, and administrative costs are charged to the Consolidated Fund of India, not subjected to a vote in Parliament.

Duties and Powers

• Scrutiny
  • CAG scrutinises expenditure of Consolidated Fund of India, State Funds, and other big-spending central governmental bodies.
• Net Tax Proceeds and Customs and Excise Duties
  • It signs the net tax proceeds and customs and excise duties and then forwards the report to the President for laying the same before the parliament for being gone through by Public Accounts Committee.

Role in Governance

• Representative of Parliament
  • It acts as a representative of Parliament to make all the expenditures legitimate and productive in nature.
• Protector
  • It saves the taxpayers’ money by protecting it from frauds and adhering to laws and intended purposes.

Constitutional Provisions

• Article 148, Article 150, and Article 151 prescribe the oath of office for the CAG.

Provision	Description
Article 148	Deals with the appointment, oath, and conditions of service of the CAG of India.
Article 149	Specifies the duties and powers of the CAG of India.
Article 150	States that the accounts of the Union and States must be kept in a form prescribed by the President on the advice of the CAG.
Article 151	Demands that the CAG’s reports on Union accounts are submitted to the President and laid before Parliament; state reports are submitted to the Governor and laid before the State Legislature.
Article 279	Says that the CAG certifies the calculation of “net proceeds,” and its certificate is final.
Third Schedule	Section IV provides the oath or affirmation that is to be administered by the Judges of the Supreme Court and the CAG at the time of assuming office.
Sixth Schedule	Deals with the maintenance of accounts by District or Regional Councils, as per a prescribed form, in accordance with auditing procedure. Such reports shall be submitted to the Governor, who will present the same before the Council.

3. Ayushman Bharat Pradhan Mantri Jan Arogya Yojana

Context:

Odisha became the latest State to implement the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) after the National Health Authority (NHA), under the Union Health Ministry, signed a memorandum of understanding (MoU) with the Department of Health and Family Welfare, Government of Odisha. 

Ayushman Bharat – Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY)

Ayushman Bharat – Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY) is a landmark initiative launched by Prime Minister Narendra Modi on 23rd September 2018 in Ranchi, Jharkhand. It’s primary aim is to provide accessible, affordable, and equitable healthcare to all citizens, particularly focusing on the vulnerable sections of society. As the world’s largest government-funded healthcare program, AB-PMJAY aspires to cover over 50 crore beneficiaries, making quality healthcare a reality for millions of Indian families.

• Ministry
  • Ministry of Health and Family Welfare

Read more>>

4. Line of Actual Control (LAC)

Context:

Stating that a “degree” of stand-off prevails along the Line of Actual Control (LAC), Army chief General Upendra Dwivedi said that he had authorised all Corps Commanders to handle issues at the ground level with respect to patrolling and grazing so that these trivial issues can be resolved at the military-level itself. 

The Line of Actual Control (LAC)

The Line of Actual Control, or LAC, is an imaginary line dividing Indian-controlled territory from Chinese-controlled territory. It has become the de facto border between India and China but is not a formally recognized international border.

Read more>>

5. Nag Mk-2 Missile

Context:

The Defence Research and Development Organisation (DRDO) announced that the indigenously developed third-generation fire-and-forget anti-tank guided missile, Nag Mk-2, and the entire system was ready for induction into the Army following successful field firing trials.

The Nag Missile

The Nag missile is an Indian third-generation, all-weather, fire-and-forget, anti-tank guided missile (ATGM) with an operational range of 500m to 20km. It has a single-shot hit probability of 90% and a ten-year maintenance-free shelf life. It has five variants under development: land, helicopter-launched Nag (HELINA), man-portable Nag (MPATGM), air-launched Nag (NAMICA), and Nag Missile Carrier (NAMICA) “tank buster”.

• Manufacturer
  • Bharat Dynamics Limited
• Launch Platform
  • NAMICA
    HAL Rudra
    HAL Prachand
    Mil Mi-24

6. Rat-Hole Mining

Context:

An oral question from the Supreme Court to the Union government remains unanswered even as rescue workers recovered bodies of four workers from a flooded rat-hole coal mine in Dima Hasao district of Assam.

Rat-Hole Mining

Definition
Rat-hole mining, a method of manually digging narrow holes in North East India for coal extraction, is banned by the National Green Tribunal but still used by artisanal mining operations in Meghalaya.

Legal Status

• Banned:
  • This type of mining is banned by the National Green Tribunal
• Still practiced:
  • The method remains to be popular in the Artisanal Mining Operations in Meghalaya

Techniques Employed

• Side Cutting Method
  • Coal seams traverse along hill slopes.
    Seams are visible at the outer edge of rocks.
• Box Cutting Method
  • A pit is dug which has a width of 5 square meters and a depth of 400 feet in order to collect the coal.
• Dangerous Conditions
  • The employees face extreme dangers due to the narrow, dangerous tunnels.
• Eco-Negative Impact
  • Serious damages to local ecosystems and landscapes.
• Inrequent Mine Accidents
  • Many deaths and injuries take place in these mines.

Coal and Coal Mining in India

7. Indian Diaspora and Pravasi Bharatiya Divas (PBD)

Context:

PM Narendra Modi hailed the Indian diaspora as “ambassadors to the world,” acknowledging their role in India’s growth and integration into the global community.

Key Highlights:

• Population
  • The Indian diaspora comprises over 35 million people of Indian origin worldwide, including Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
• Pravasi Bharatiya Samman
  • The president awarded 27 Pravasi Bharatiya Samman awards.

Pravasi Bharatiya Divas

Pravasi Bharatiya Divas or Overseas Indian Day is an official celebration in India since 2003, marking the Overseas Indian contributions to the nation’s development as well as on the occasion when Mahatma Gandhi returned to Mumbai from South Africa in 1915.

• Date
  • 08 January, 2024.
• Place
  • Odisha’s Bhubaneswar.

Indian Diaspora

Overseas Indians, also called Non-Resident Indians (NRIs) , The Overseas Citizenship of India (OCI) and People of Indian Origin (PIOs), are Indians living or born abroad.

Banking/Finance

1. Wholesale Price Index (WPI) & Consumer Price Index (CPI)

Inflation

India’s retail inflation eased a bit to a four-month low of 5.22% in December from 5.5% in November, with food inflation cooling marginally from 9.04% in November to 8.4% last month, the National Statistics Office.

• Retail inflation, or consumer price inflation (CPI), is a measure of the change in consumer prices over time.
• Food inflation, a measure of retail inflation, defines changes in prices of foods.

Wholesale Price Index (WPI)

• It measures average change in commodity prices in the wholesale market.
• The three commodity groups are: Primary Products, Fuel and Power, and Manufactured Products.
• Weights assigned to each commodity are on the basis of production value net of net imports.
• Compiled and published
  • Compiled and published monthly by the Office of Economic Advisor, Ministry of Commerce and Industry.
• Base year for WPI
  • 2011-12.

Consumer Price Index (CPI)

• Average change in prices paid by the ultimate consumers for a basket of goods and services over time.
• The types of CPIs are due to the diversity in the condition of society.
• Industrial Workers Price Index (CPI-IW)
  • Measures commodity basket of industrial workers
• Consumer Price Index for Urban Non-Manual Employees (CPI-UNME)
  • It measures the change in commodity baskets consumed by nonmanual employees.
• CPI for Rural Laborers and Agricultural Laborers (CPI-AL&RL)
  • Measures change in commodity baskets consumed by rural laborers.

New CPIs

• Covers all segments of the population of India.
• Compilated and published by the Central Statistical Organisation (CSO) for All India Level and the State/UT Level.
• New Indices
  • CPI (Rural), CPI (Urban), and CPI (Combined).
  • Reserve Bank of India (RBI) uses CPI (Combined) as the sole inflation measure for monetary policy.

Comparative Analysis of Wholesale Price Index (WPI) and Consumer Price Index (CPI)

• Same Base Year
  • WPI and CPI are on the same base year, 2011-12, but with different commodity numbers and weights.
• Inflation
  • Inflation based on WPI is generally low, while inflation based on CPI is generally high.
• Monetary Policy Decisions
  • WPI is not very suitable for monetary policy decisions, while CPI is very suitable.

Producer Price Index (PPI)

• PPI measures the average change in selling prices received by domestic producers over time.
• It measures price changes from the perspective of producers.

Basic Concepts of Inflation

2. Direct and Indirect Taxes in India

Context:

Growth in India’s net direct tax collections slowed marginally over the past month to touch 15.88% by January 12, from a 16.5% uptick as of December 17.

Direct Tax in India

• Direct tax is a tax paid directly to the entity imposing it.
  • It includes income tax, real property tax, personal property tax, and taxes on assets.

Significance of Direct Tax

• Equity
  • Direct taxes ensure justice in tax burden allocation.
• Progressive
  • Direct taxes can reduce income and wealth inequalities, leading to social equality.
• Productive
  • Direct taxes are elastic and productive, increasing or decreasing with changes in national income or wealth.
• Certainty
  • Direct taxes are more precise in estimating revenue, thus reducing chances of tax evasion.
• Economy
  • Direct taxes maintain the canon of economy by collecting annually in lump-sum, reducing administrative costs.
• Educational
  • Direct taxes create a civic sense among taxpayers, making them aware of their duty to pay taxes.
• Anti-inflationary
  • Direct taxes can help keep prices up and curb inflationary excess demand.

Government Steps to Strengthen Direct Taxes

• The Finance Act, 2020
  • The Finance Act, 2020 provides concessional rates for personal income tax.
• Vivad se Vishwas Scheme
  • Declarations are filed to settle pending tax disputes, raising revenue in time and saving costs on litigation.
• Expansion of scope of TDS/TCS
  • New transactions are brought within the purview of TDS and TCS.
• Transparent Taxation- Honoring the Honest
  • Brings transparency into the income tax system.

Indirect Tax

Indirect Tax is that type of tax for which the Impact of Tax and Incidence of Tax fall on different persons or entities. Indirect Taxes are, generally, levied on goods and services.

They differ from direct taxes as they are not levied on a person who pays directly to the government. Instead, they are levied on products/services and are collected by the person selling the product.

• Administration
  • The Central Board of Indirect Taxes and Customs (CBIC) administers the Indirect Taxes in India. CBIC is a department under the Department of Revenue in the Ministry of Finance.

Characteristics of Indirect Tax

• Goods and Services
  • Indirect taxes are levied on the consumption of goods and services rather than being imposed directly on the income of an individual.
• Paid Indirectly
  • The indirect tax is paid directly to the intermediary like a seller or service provider and then on to the government, while direct taxes are paid to the government.
• Regressive in Nature
  • These are regressive as everyone has to pay for the same commodity or service irrespective of his income.
• Broad Base
  • They generally have a broad tax base, since they are levied on most goods and services consumed by the people.

Types of Indirect Tax

• Excise Duty
• Customs Duty
• Sales Tax
• Service Tax
• Goods and Services Tax (GST)
• Octroi and Entry Tax
• Toll Tax
• Stamp Duty

Other Taxes in India

• Corporate Tax
  • a percentage of firm profit that has to be remitted to the government.
• DDT
  • applicable on the portion of dividends disbursed to a shareholder by an enterprise.
• Minimum Alternate Tax
  • Introduced to have no tax payable or reduce a part of one’s tax payable.
• Security Transaction Tax (STT)
  • Imposed on buying and selling of securities traded on recognized stock exchanges in India.

3. Fintech Association for Consumer Empowerment (FACE)

Context:

In a data release, which comes amid concerns on the personal loans front, which have even led to actions from RBI to curb lending in it, Fintech Association for Consumer Empowerment (FACE) said the loan outstanding dropped to ₹66,683 crore.

Fintech Association for Consumer Empowerment (FACE)

FACE is a Self-Regulatory Organisation in the FinTech sector recognized by RBI, established in September 2020. FACE aims to build a consumer-centric FinTech ecosystem in India, with financial services that are safe, suitable, and transparent. Some of the objectives of FACE include enabling financial services that give priority to consumer needs and safety.

• A self-regulatory organization (SRO) is a non-governmental organization that regulates a profession or industry. SROs create rules to promote order and compliance, and to protect consumers and stakeholders. 

Role of FACE in FinTech Ecosystem

• A governance body within rapidly emerging FinTech space.
• FACE is seen as an aggregating point where FinTech service providers, facilitators, as well as any other interested stakeholder could join.
• FACE acts proactively to find solutions for new problems, control risks, and ensure sound business conduct.
• FACE can also be considered a consumer’s advocate who promotes awareness of safe and suitable financial products and services.

Challenges Facing the FinTech Industry

• Regulatory Uncertainty
  • Despite its fast growth rate, the FinTech industry still faces regulatory challenges.
• Cybersecurity Risks
  • High cybersecurity standards can be achieved only by sustaining the confidence of consumers.
• Financial Literacy
  • FACE aims to improve financial literacy through campaigns and education of consumers.

Achievements and Contributions of FACE

• Standards
  • FACE has formulated a code of conduct for its members.
• Increasing Financial Inclusion
  • FACE is involved in financial inclusion, especially for the underprivileged masses.
• Providing a Forum to Engage
  • FACE serves as a forum where stakeholders can discuss relevant matters.

Fintech In India

Fintech Repository

4. Initial Public Offering (IPO)

Context:

Home services platform Urban Company plans to file draft papers for a ₹3,000 crore initial public offering (IPO) .

Economy

1. India in Cyclical Slowdown!

Context:

India is going through a cyclical growth slowdown driven by fiscal consolidation and slower credit growth on macro-prudential tightening of consumer loans by the Reserve Bank of India (RBI), a Goldman Sachs report argued.

Cyclical Slowdown

A cyclical slowdown is a period of lean economic activity that occurs at regular intervals. Such slowdowns last over the short-to-medium term, and can be remedied by relevant fiscal and monetary interventions.

• Counter-Cyclical Measures
  • Till date interim fiscal and monetary measures include reductions in taxes and subsidies, also rate cuts to stimulate recovery
  • Recapitalization of the credit markets coupled with regulatory change is often seen as a necessary to spur recovery.

Structural Slowdown

A structural slowdown is a long-term period of economic weakness resulting from a permanent shift in the economy. The causes may include changes in technology, demographics, or consumer behavior.

• Causes
  • Technology: Structural slowdown is caused by the emergence of disruptive technologies.
  • Demographics: Changes in demographics are a cause of structural slowdown.
  • Consumer behavior: Changes in consumer behavior cause structural slowdown.
• Effects
  • Weak Economic Growth: Structural slowdown leads to weak economic growth for a long time.
  • Monetary and fiscal stimulus: Monetary and fiscal stimulusalone might not help in reviving the economy.
  • Structural policies: may be necessary to correct the maladies.
• Comparison with cyclical slowdown
  • A cyclical slowdown refers to a weak phase of economic growth that occurs periodically.
  • A structural slowdown is a deeper phenomenon that persists for a long time.

Understanding Cyclical and Structural Slowdowns

• Cyclical Slowdown
  • It is caused by fluctuations in the business cycle of the economy.
  • It is short-term and depends on factors like changes in consumer demand, interest rates, inflation, and business investment levels.
  • Generally, it is temporary and usually reversible as economies pass through business cycles.

• Structural Slowdown
  • This is more extended and profound deceleration in the economic growth.
  • It is usually caused by deep-rooted changes such as demographic changes, low productivity, obsolescence of infrastructure, or even the pattern of trade in the world.
  • Long term typically requiring profound changes or reforms in economic policy, labor market, or technology.

Differences

• Type of Causes
  • Cyclical slowness of the economies is short-term; structural are fundamental.
• Policy Response
  • Cyclic slowdowns will respond well with a short-term policy, but structural slowdowns will require long-term reforms.

2. Disinvestment

Context:

The officers and employees of IDBI Bank will hold a protest before Parliament during the Budget session to highlight their demand regarding disinvestment in the bank and protecting the interests of 30 million customers, 20,000 employees, and the nation.

Disinvestment Process in India

It is the process of selling the government’s stake in public sector enterprises to strategic or financial buyers. The proceeds are used to finance social and infrastructure projects and reduce the fiscal deficit of the government.

• Approaches
  • Minority Disinvestment: The government maintains a majority in the company, usually more than 51%, thereby retaining management control.
  • Majority Divestment: The government gives up control to the acquirer but retains a stake.
  • Complete Privatisation: 100% control of the company is transferred to the buyer.
• Process
  • The process of disinvestment in India is carried out by the Department of Investment and Public Asset Management (DIPAM), which is a subsidiary of the Ministry of Finance.
  • The main motive of DIPAM is to manage investments by the Government in public sector enterprises and supervising the process of disinvestment of government’s equity in such enterprise.
• National Investment Fund
  • Government has formed the National Investment Fund in the year 2005 and all the Central Public Sector Enterprise disinvestment amounts were to be channelized through NIF

What is Need For Disinvestment?

• Reduce the Fiscal Burden:
  • The government may disinvest in order to reduce the fiscal burden or bridge the revenue shortfall for that year.
  • It also uses disinvestment proceeds to finance the fiscal deficit, to invest in the economy and development or social sector programmes, and to retire government debt.
• Encourages Private Player:
  • Disinvestment also encourages private ownership of assets and trading in the open market.
    • This would encourage more private sector investments in the economy since it projects that the government is committed to reforms and to better business environment.
• Improves Efficiency:
  • By divesting from public sector enterprises, the government can improve the efficiency and competitiveness of these enterprises, as private sector ownership and management can bring in new ideas and a more market-oriented approach.
• Better Allocation of Resources:
  • The government can reallocate the resources freed up through disinvestment towards other priorities, such as social and infrastructure development.
• Increases Transparency:
  • Disinvestment can bring in greater transparency and accountability in the functioning of public sector enterprises, as private sector ownership and management can lead to more stringent financial and operational reporting.

Agriculture

1. PM-KISAN Scheme

• Launch and Objective
  • Was launched by the Prime Minister in February 2019 to supplement the financial needs of land-holding farmers.
• Ministry
  • Ministry of Agriculture and Farmers Welfare
• Funding and Implementation
  • PM-KISAN is a Centrally Sponsored Scheme with full funding from the Centre to the State, the ministry for implementing this is the Ministry of Agriculture and Farmers Welfare.
• Features
  • Financial benefit of Rs 6,000/- per year in three equal instalments every four months.
• Direct Benefit Transfer (DBT)
  • Transfers benefits into bank accounts of farmers’ families across the country through Direct Benefit Transfer (DBT) mode.
• Scale of the Scheme
  • One of the largest DBT Schemes of the World.
• Farmer-Centric Infrastructure
  • Farmer-centric digital infrastructure ensures that the benefits reach all farmers in the country.
• Verification and Transfer Process
  • Benefits are transferred to beneficiaries through DBT mode based on verified data from the PM-KISAN portal.
• Technological Interventions
  • Technological interventions introduced to address ineligibility, including integration with PFMS, UIDAI, and the Income Tax Department.

Other Features

• Krishi Sakhis
  • Krishi Sakhis are the practicing farmers and trained para extension professional in agriculture at grass root level.
  • This is part of the scheme of certificate distribution to more than 30,000 women from Self Help Groups (SHGs) as Krishi Sakhis.
• Krishi Sakhi Training Program
  • This is the convergence program of Krishi Sakhi Training Program, they will be trained along with certification for Krishi Sakhis as “Para-extension Workers.”

Recent Updates on PM-KISAN

• Per initial targets
  • 2019-20 beneficiaries were estimated to be at 14.5 crore; estimated expenditure for each year ₹87,217.5 crores.
• Actual performance
  • It never exceeded ₹70,000 crores yearly. The number of beneficiaries reached 9.59 crore by October 2024 which is much below the actual target of 14.5 crore.
• Funding Trends
  • Allocations for 2019-20 and 2020-21: ₹75,000 crore each.
• Beneficiary Trends
  • Total beneficiaries: 9.59 crore, Scheduled Castes: 12%, Scheduled Tribes: 9%, Women: 20% among SCs and others, 29% among STs.
• State-Wise Distribution Trends
  • Disbursements and beneficiary counts have fluctuated across states, with states with significant agricultural activity witnessing a decline in beneficiaries and payouts.
• Issues and Suggestions
  • Omitting tenant farmers from the coverage despite demands for expansion, underutilization of funds, and demand for higher payout.
• Suggestions
  • Increase payout, promote resource efficiency, improve beneficiary inclusion, enhance transparency, and focus on state-level discrepancies.

2. Government e-Marketplace (GeM Portal)

In recent years, the Government of India has taken several initiatives to ensure transparency, efficiency, and ease of doing business. One such initiative is the Government e-Marketplace (GeM), an online platform launched to streamline public procurement processes. GeM aims to reduce corruption, improve transparency, and make government procurement more efficient by facilitating the purchase of goods and services directly from vendors and suppliers.

• Launch Date:
  • 9 August 2016
• Ministry:
  • Ministry of Commerce and Industry
•  Chairperson and Nominee Director: 
  • Sunil Barthwal

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Facts To Remember

1. Eric Garcetti’s term as U.S. Ambassador comes to an end

• U.S. Ambassador Eric Garcetti said that the wildfires in Los Angeles had displaced his immediate family. Delivering a moving speech at the U.S. Education Foundation, Mr. Garcetti announced that his term as the U.S. Ambassador to India had come to an end with the advent of a new administration under President-elect Donald Trump.

2. HPCL commissions ₹4,750-cr. LNG regasification terminal

• Hindustan Petroleum Corporation Ltd. (HPCL) has commissioned a 5-million tonne liquefied natural gas (LNG) regasification terminal in Chhara, Gujarat. LNG carrier Maran Gas Coronis berthed at the terminal on January 6 and discharged the commissioning cargo into the onshore tanks on January 12. The auxiliary units will be operational shortly. 

3. Iran takes delivery of 1,000 drones ahead of Trump’s inauguration

• A thousand new drones were delivered to Iran’s Army on Monday, as the country braces for more friction with Israel and the U.S. under incoming U.S. president Donald Trump. 

4. India defeats Nepal in opening clash of Kho Kho World Cup

• The Indian men’s team defeated Nepal 42-37 in the opening match of the inaugural Kho Kho World Cup at the Indira Gandhi Indoor Stadium here on Monday.

5. Rupee Slips 5 Paise to 86.63 Against US Dollar

In the Forex market, the rupee today fell by five paise to settle at 86 rupees and 63 paise against the US dollar.

6. Oil Prices Dip Slightly

Oil prices fell slightly today, retreating from their recent gains. Brent Crude was trading at 80 dollars and 75 cents per barrel declining over 0.3 percent.

7. Badminton: PV Sindhu Marks Winning Return at India Open 2025

In badminton, ace India shuttler PV Sindhu made a winning return to the court as she defeated Chinese Taipei’s Shuo Yun Sung in straight games in the India Open 2025.

8. PM Modi Lauds Establishment of National Turmeric Board

Prime Minister Narendra Modi today lauded the establishment of the National Turmeric Board.

9. Future Minerals Forum Opens in Riyadh

The Future Minerals Forum (FMF) 2025 commenced today in Riyadh, bringing together representatives from the mining industry from over 85 countries to address critical challenges in the mineral sector.

10. Sensex Gains 170 Points, Breaks Four-Day Losing Streak

 Benchmark domestic equity indices today ended with modest gains, snapping their four-day losing streak. The 30-share index at the Bombay Stock Exchange, Sensex, gained 170 points to close at 76,500.

11. India’s Coal Imports Drop by Over 3% during April-October, 2024

Coal imports in the country have dropped by over three percent from April to October last year.

12. PM Modi launches ‘Mission Mausam’ to make India weather-ready and climate-smart on IMD’s 150th Foundation Day

Prime Minister Narendra Modi today launched Mission Mausam to make the country a weather-ready and climate-smart nation. 

13. Indian stock market opens on a positive note

The Indian stock market opened on a positive note today. NSE Nifty 50 and BSE Sensex opened higher, Nifty 50 was 114 points or 0.49 per cent higher at 23,200, and the Sensex was 370 points or 0.49 per cent up at 76,700 in early trade.

14. India women take on South Korea, Men face Brazil in Kho Kho World Cup 2025

The Indian women’s team is set to face South Korea in their opening match of the Kho Kho World Cup 2025 this evening at the Indira Gandhi Indoor Stadium in New Delhi.

15. EAM Dr S Jaishankar, Spanish Foreign Minister discuss bilateral ties in trade, defense, urban development

External Affairs Minister Dr S Jaishankar held talks with Spanish Foreign Affairs Minister José Manuel Albares in Madrid yesterday.

16. Rupee Slips 5 Paise to 86.63 Against US Dollar

In the Forex market, the rupee today fell by five paise to settle at 86 rupees and 63 paise against the US dollar