Current Affairs 17 January 2025

Daily Current Affairs Quiz
17 January, 2025

International Affairs

1. India-EU Relation

The European Union is a political and economic union comprising primarily 27 member states in Europe. The Maastricht Treaty established the EU, which came into force on November 1, 1993. The basic objective of the EU is to promote cooperation and integration between its member countries and thereby improve economic stability and political stability within Europe. The EU has its own currency, the Euro, which is used by 19 of the member states.

What are the Recent Key Highlights in India-EU Trade?

• Exports:
  • India’s exports to Europe in FY24 are about USD 86 billion and merchandise exports to EU member countries stood at about USD 65 billion in 2021-22, while imports aggregated at USD 51.4 billion.
• Substantial Interest in Steel Exports: 
  • India’s iron and steel product exports to the EU increased to USD 6.64 billion in 2023-2024 and from USD 6.1 billion in 2022-23.
• Countervailing Duties:
  • In 2020, the US and EU imposed countervailing duties (CVDs) on some Indian exports, such as paper file folders, common alloy aluminium sheets, and forged steel fluid.
  • Countervailing duties refer to the tariffs imposed on imported goods to equalize the subsidies provided by the exporting country’s government in protecting the home industry.
• Government Initiative:
  • The commerce ministry is developing an institutional mechanism to scrutinize the refund of taxes given to exporters under the government’s duty remission scheme called RoDTEP to mitigate countervailing duties levied by leading importing nations.

What is RoDTEP Scheme?

• About:
  • It is a duty waiver scheme effective since 1 January 2021 and is a plan to increase export by removing the tax liability on the goods being exported.
  • It is managed by the Ministry of Finance, under the Department of Revenue
  • It has replaced the earlier Scheme in lieu of the export incentive scheme- Merchandise Exports from India Scheme (MEIS)
  • MEIS was pushed by a decision by WTO as MEIS Scheme was against the rules of World Trade Organization
• Objective:
  • The scheme looks to provide a wide-ranging support to the exporter by refunding different expenditures.
  • It would refund to exporters the taxes, duties, and levies that have been paid in the process of producing and distributing products and which cannot be refunded under any other scheme.
• Introduction of New Sectors Under RoDTEP:
  • The Government of India has made an announcement extending RoDTEP Scheme support more to the export sectors than ever before, like Advance Authorisation (AA) holders, Export Oriented Units (EOU), and Special Economic Zones (SEZ) export units.
  • Engineering, Textiles, Chemicals, Pharmaceuticals & Food Processing, among others are some sectors that this move is going to touch.
• Financial Allocation:
  • Since its launch, the RoDTEP Scheme has already supported over 10,500 export items with an amount of Rs 42,000 Crores.

India-EU Relationship Evolution and Challenges

Evolution of India-EU Relationship

• The relationship between India and the EU has evolved over the years, with the EU being India’s largest trading partner.
• Key events include the establishment of the Cooperation Agreement in 1994, the first India-EU Summit in 2000, the Joint Action Plan in 2005, and the renewed dialogue in 2017.

Areas of Cooperation

• Free Trade Agreement (FTA)
  • From negotiating a Free Trade Agreement (FTA) to being broadened to address geostrategic and economic challenges.
• Trade and investment cooperation:
  • The EU is India’s largest trading partner, having trade in FY24 are about USD 86 billion.
• Investment:
  • The EU is a major source of investment for India. The share of the EU in foreign investment stock went up from about €63.7 billion in 2017 to over €87.3 billion in 2020.
• Infrastructure development:
  • The EU has supported India’s plan for modernizing its infrastructure, including financing of projects in sectors such as energy and transport.
• Political strategic partnership:
  • The EU and India have a strategic partnership, which includes regular high-level political dialogue and cooperation on issues such as counter-terrorism and non-proliferation.
• Development aid:
  • The EU has offered development aid to India, with support for initiatives in health, education, and agriculture.
• Cooperation on terrorism, cyber security, and climate change:
  • The two have cooperated on several conferences and workshops on cyber security and efforts on combating terrorism.
• Cooperation in security matters:
  • EU and India have collaborated in regional and global security issues, through the United Nations and other multilateral organizations.
• Research and innovation:
  • This has been well collaborated between the EU and India on scientific research and innovation; for instance, Horizon 2020 of the EU.
• Cultural and educational exchange:
  • Amongst the major cooperation areas lies cultural and education exchanges between the EU and India like Erasmus+.
• Multilateral cooperation:
  • The European Union and India should cooperate under multilateral forums at the United Nations, the World Trade Organization, and the G20 to promote shared values towards global challenges.

2. New Glenn Rocket

Context:

Blue Origin launched its New Glenn rocket on its first test flight, successfully sending a prototype satellite into orbit. The New Glenn rocket blasted off from Florida after years of development funded by Jeff Bezos, soaring from the same pad used to launch NASA’s Mariner and Pioneer spacecraft.

New Glenn Rocket

New Glenn is a heavy-lift launch vehicle developed by Blue Origin, having a partially reusable, two-stage design with a 7-meter diameter. It has seven BE-4 engines and two BE-3U engines, all in-house. Launched from Cape Canaveral Launch Complex 36, it was officially announced in 2016. It is named after NASA astronaut John Glenn and was launched on its maiden flight on 16 January 2025, carrying a prototype Blue Ring spacecraft.

3. North Atlantic Treaty Organization (NATO)

Context:

Japan formally inaugurated an independent mission to the North Atlantic Treaty Organization (NATO) as Tokyo and the military alliance seek to bolster cooperation amid escalating tension from Russia, China, and North Korea.

North Atlantic Treaty Organization (NATO)

4. Hindenburg Research Shuts Down!

Context:

U.S.-based shortseller Hindenburg Research will be disbanded, its founder Nathan Anderson has said, adding that the firm has completed the projects it was handling.

• Reason
  • The reason is the “intense” and “all-encompassing” nature of the work, founder Nathan Anderson said.
• Hindenburg’s report on Adani Group
  • Hindenburg’s 2023 report claims the Adani Group engaged in stock manipulation, accounting fraud, and misuse of offshore tax havens to inflate group share prices artificially.
  • Such a report had heavy market impacts, wiping out over $150 billion in value of Adani Group’s shares.

Hindenburg Research

Hindenburg Research LLC is a US investment research firm founded in 2017 and focuses on activist short-selling. Named after the 1937 Hindenburg disaster, the company released public reports alleging corporate fraud and malfeasance against companies like Super Micro Computer, Adani Group, Nikola, Clover Health, Block, Inc., Kandi, and Lordstown Motors. It’s headquarter is in New York.

National Affairs

1. SpaDeX Mission

The Indian Space Research Organisation (ISRO) successfully executed a satellite docking experiment in the early hours of Thursday, “making India the fourth country” after the U.S., Russia and China to achieve this historic feat.

SpaDeX: Space Docking Experiment

Introduction

• SpaDeX (Space Docking Experiment) is an ISRO Technology Demonstrator Mission to showcase in-orbital docking capabilities.
• Significance
  • A giant leap for Indian space capabilities where two small-sized spacecraft perform autonomous rendezvous, docking, and undocking missions in low Earth orbit.
• Low Earth Orbit (LEO)
  • Low Earth Orbit (LEO) is the area around Earth where satellites orbit at an altitude of 2,000 kilometers (1,200 miles) or less. LEO is close enough to Earth for satellites to be used for communication, transportation, observation, and resupply. 

Mission Objective

• Major Objective
  • Design and demonstrate autonomous docking capability between two satellites:
    • SDX01 (Chaser): Actively seeks out the target to dock.
    • SDX02 (Target): Passively waits to be docked.
  • Advanced sensors and propulsion systems are used with Bharatiya Docking System (BDS) to achieve docking.
• Auxiliary Objectives
  • Test direct electric power transfer between spacecraft.
  • Demonstrate improved spacecraft control.

Mission Design

• Launch
  • Two satellites, SDX01 and SDX02, are launched to a 470 km orbit with the Polar Satellite Launch Vehicle (PSLV).
  • Satellites drift apart and then approach and dock at distances of 20 km to 3 meters.
• Bharatiya Docking System (BDS)
  • Identical and androgynous design (same mechanism for both satellites).
  • Low-impact approach with velocities around 10 mm per second, ensuring precision and flexibility for future missions.
• Duration
  • Two years.
• POEM-4
  • PSLV’s fourth stage carries 24 microgravity experiments from academic institutions and startups along with SpaDeX.

Challenges in Space Docking

• The spacecraft orbit Earth at 28,800 km per hour.
• Relative velocity has to be decreased to 0.036 km per hour prior to docking, requiring precise control and synchronization.

Definition and Applications of Space Docking

• A process where two orbiting spacecraft align, approach, and join to form a single unit.
• Applications
  • Assembly of large structures, such as the International Space Station.
  • Crew and supply transfers.
  • Maintenance of orbiting systems.

In-Space Docking

Docking in space is the process of two spacecraft physically joining together. It’s an important operation for maintaining a continuous human presence on the International Space Station (ISS).

How it Will Work?

• The docking mechanism works by “hugging” action, where the chaser satellite enters the target satellite and pulls the target towards the chaser.
• The satellites will also indicate successful connection with the ability to transfer power.

Why Space Docking Technology Is Important for India

• Modular Space Infrastructure
  • Enables the building of large multi-modular structures, which is a critical need for the proposed Bharatiya Antariksh Station.
• Interplanetary and Lunar Missions
  • Supports orbital refueling and payload exchange for missions such as Chandrayaan-4 and further enables lunar bases and Mars missions.
• Human Spaceflight Program
  • Critical for crew transfer and emergency evacuation in long-duration missions, such as Gaganyaan.

• Global Partnership and Market Exploration
  • India becomes the fourth country to master docking after Russia, the US, and China.
  • Unlocks opportunities for satellite servicing, international cooperation, and next-generation space collaboration.
• Satellite Servicing
  • Enables in-orbit repairs, refueling, and upgrades to extend the life of satellites and their capabilities.

2. Satish Dhawan Space Centre (SDSC)

Context:

The Union Cabinet approved the construction of a third launch pad at the Satish Dhawan Space Centre (SDSC) in Sriharikota, Union Minister of Information and Broadcasting Ashwini Vaishnaw said.

The launch pad will have an outlay of ₹3,984.86 crore, and is targeted to be completed by early 2029.

Satish Dhawan Space Centre (SDSC)

Satish Dhawan Space Centre (SDSC) is India’s major spaceport located at Sriharikota, Andhra Pradesh. There are two launching pads here – one for the sounding rockets as well as for launching polar and geosynchronous satellites. The launches of Lunar probes for exploration missions, Mars Orbiter Mission, Solar research mission called Aditya-L1 and space observatory XPoSat were from the SDSC.

Aditya-L1: India’s First Sun Mission

3. Eighth Pay Commission

Context:

The Union government approved the establishment of the Eighth Pay Commission, accepting a demand of the Central trade unions and employees’ organisations.

The 8th Pay Commission

The 8th Pay Commission was established after heavy pressure from trade unions and government employees, who have been demanding a review since the cost of living rose due to a revision in 2016. The previous commission was established in 2014, and the recommendations were implemented in January 2016.

What is the Pay Commission?

• The Pay Commission is a government-appointed body tasked with reviewing the existing pay structure of government employees and recommending changes, which may include revisions in basic pay, allowances, and pension. The recommendations of the Pay Commission are typically accepted by the government and implemented accordingly.
• India has had several Pay Commissions, with the first one being set up in 1947, and the most recent being the 7th Pay Commission, which came into effect in 2016. The 8th Pay Commission is expected to follow in the footsteps of its predecessors, ensuring that the pay structure remains in line with the economic conditions and the government’s fiscal health.

Read more>>

4. Semi Conductor Industry in India

Context:

Singapore is exploring new initiatives such as manufacturing of semiconductors and building a semiconductor ecosystem in India and participating in the creation of a new generation of technological solutions, the city-state’s President, Tharman Shanmugaratnam, said.

India’s semiconductor industry is growing rapidly, and the government has taken several steps to support it. The industry is expected to reach $80.3 billion by 2028.

Semiconductor

A semiconductor is a material that can conduct electricity in some conditions and block it in others. Semiconductors are used in many electronic devices, including computers, air conditioners, and medical devices. 

What are semiconductors used for?

• Semiconductors are used in integrated circuits (ICs), which are the building blocks of computer chips. 
• Semiconductors are also used in diodes and transistors. 
• Semiconductors are used in thermoelectric generators and coolers. 

India’s Semiconductor Mission

• Launched in 2021 with an investment of USD 10 billion, the Semiconductor Mission aims to reduce dependence on imports and boost national security.
• The Semiconductor Mission will generate 35,000 quality jobs and indirect employment of 100,000 people.
• Part of Semiconductor India Programme, which will establish a particular chip design center in the tech hubs of Bangalore, Hyderabad and Pune.

The Challenges: India’s Semiconductor Dream

• Infrastructure Challenges
  • The geography and development pattern across India make infrastructure a problem.
• Talent Gap
  • High-skilled and multi-domain skill-set employees require the semiconductor industry.
• Expensive Production Cost
  • A very capital-intensive process, this business is cost-prohibitive, and the operational cost.
• Global Supply Chain Dynamics
  • It has huge ramifications for the semiconductor ambitions of India if the global supply chain goes haywire on account of geopolitics or a natural disaster.
• Environmental Concerns
  • It is an energy-intensive industry, and it poses environmental concerns.
• Competition from Other Emerging Markets
  • Vietnam, Malaysia, and Indonesia are some of the other emerging markets that threaten India.
• Strengthen Semiconductor Education and Training
  • Introduce and expand semiconductor engineering curricula within colleges and technical schools
• Develop Native Chip Design Capability
  • Significantly invest in chip design capabilities that already leverage native software strengths.

Government Schemes for Semi Conductor in India

• Semicon India Programme
  • A program that provides financial support and technological collaboration to companies that invest in semiconductors and display manufacturing. 
• Design Linked Incentive (DLI) Scheme
  • A scheme that provides financial incentives and design infrastructure support for semiconductor design. 
• Modified Scheme for setting up of Semiconductor Fabs in India
  • A scheme that provides fiscal support of up to 50% of the project cost for setting up semiconductor fabs. 

Goals of these schemes

• To develop a sustainable semiconductor and display ecosystem in India. 
• To position India as a global hub for Electronics System Design and Manufacturing (ESDM). 
• To encourage domestic manufacturing of semiconductors. 

5. Bharat Ranbhoomi Darshan App

Context:

An initiative of the Ministries of Defence and Tourism, as well as the Army, the “Bharat Ranbhoomi Darshan” app was launched by Defence Minister Rajnath Singh on January 15 coinciding with the Army Day celebrations.

Key Features:

• Accessible Locations
  • Ladakh’s Rezang-La, Arunachal Pradesh’s Kibithoo and Bum-La, and Kargil.
  • Galwan and Doklam: Visit Galwan Valley and Doklam.
  • Siachen Base Camp: Visit the base camp of the world’s highest battlefield.
  • Other Sites: Pangong Tso and other forward locations from key battles.
  • Operational Areas: Restricted Access, but other forward locations are opened.

Tourism Objectives:

• Border areas and historic battlefields are to be transformed into tourist destinations.
• Citizens are to be encouraged to see the valour of Indian soldiers and explore strategic areas.

Initiative Goals:

• Holistic development
  • Build facilities for tourism and accessibility.
  • Improves connectivity in the remotest areas.
  • Develop patriotism and enhance the local economy.
  • Showcases India’s military past and sacrifices by its armed forces.

One Stop Information Hub

• The application and website detail travel information along with historical significance of each place.

6. BrahMos Supersonic Missile

Context:

The Indian Army successfully conducted a capability demonstration launch of the BrahMos supersonic cruise missile at extended range. 

Key Highlights:

• Features
  • Dual-role capability will include land and anti-ship attacks, launched from land, air, and sea.
  • BrahMos missile, the Indo-Russian joint venture, has a range of 290 km and is the fastest cruise missile in the world.
• Benefits
  • The deal is supposed to enhance the operational capability of Indian Navy fleet assets and boost indigenous production of critical weapon systems.
• Naming
  • Named after rivers Brahmaputra and Moskva, it is a two-stage missile with pinpoint accuracy and “Fire and Forgets” working principle.

7. Medium-Range Surface-to-Air Missiles (MRSAM)

Context:

The Union Defence Ministry inked a ₹2,960-crore contract with Bharat Dynamics Ltd. (BDL) for medium-range surface-to-air missiles (MR-SAM) for the Indian Navy. “The MR-SAM system is a standard fit aboard multiple Indian naval ships, and is planned to be fitted on the majority of the future platforms planned for acquisition.

Medium-Range Surface-to-Air Missiles (MRSAM)

Medium-range surface-to-air missiles, abbreviated as MRSAM, are missile systems designed for intercepting enemy aircraft, helicopters, drones, and missiles. MRSAMS are ground-launched missiles that are used by the Indian Army, Air Force, and Navy.

Features of MRSAMs

• Range
  • MRSAMs have a range of 70 km
• Guidance
  • MRSAMs use dual guidance systems, which include a command and active radar seeker
• Propulsion
  • MRSAMs use a dual pulse solid motor
• Warhead
  • MRSAMs carry a pre-fragment warhead
• Maneuverability
  • MRSAMs are highly maneuverable and capable of engaging several targets at the same time
• Radar systems
  • MRSAMs use radar systems to track and detect incoming threats
• The MRSAM is also referred to as the “Abhra” Weapon System.

8. SVAMITVA Scheme

SVAMITVA (Survey of Villages and Mapping with Improvised Technology in Village Areas) scheme is a collaborative effort of the Ministry of Panchayati Raj, State Panchayati Raj Departments, State Revenue Departments and Survey of India.

• The Scheme was launched on April 24th of the year 2020. It is meant to register a Record of Rights for rural property owners in the Abadi areas (inhabited regions) using innovative drone and GIS technology.
  • It follows the Whole-of-Government approach with various departments and stakeholders for improving financial inclusion.
  • SVAMITVA Through property ownership validation, it ensures better credit access and socio-economic stability.
• Goal
  • Integrate a rural land property validation system
• Features
  • This scheme involves mapping parcels of lands, through a utilization of the power of drones technology along with the use of Continuously Operating Reference Station or CORS.
  • The mapping will be done all over the country on a phase by phase basis, over a time period of four years, i.e. between 2020-2024.
• Advantages
  • This programme would facilitate a smoother process for planning and collecting revenue in the rural areas. It will further ensure that there is clarity with regard to the property rights.
  • This programme will help produce more quality GPDPs with the help of the maps prepared under this programme.
• Gram Panchayat Development Plans
  • The Gram Panchayats are statutorily directed to prepare Gram Panchayat Development Plans (GPDP) for economic development and social justice.
  • The GPDP is based on a participatory process in convergence with schemes of all related Central Ministries/Line Departments related to 29 subjects listed in the Eleventh Schedule of the Constitution.

Achievements

• Drone Mapping Coverage
  • 3.17 lakh villages completed, mapping rural areas for property documentation.
• Property Card Distribution
  • More than 2.19 crore property cards distributed to 1.49 lakh villages, giving permission for legal property rights.
• Improved Governance
  • Digitally validated records have improved Gram Panchayat Development Plans (GPDPs), making infrastructural planning more effective.
• Women Empowerment
  • Legal property ownership enhances women’s financial security and decision-making power.
• Dispute Resolution
  • Accurate mapping has reduced property disputes by clarifying land ownership and boundaries.

Banking/Finance

1. RBI’s de-Registration Process for NBFCs

Context:

RBI assessing Tata Sons’ plea for de-registration as NBFC.

RBI Regulations on NBFC

According to RBI regulations, the company must get listed on the exchanges within three years of such classification. The upper-layer NBFCs are subject to enhanced regulatory scrutiny for at least the first five years. 

Why RBI Cancels the Registration Certificate of NBFC?

The RBI can cancel the registration certificate of a non-banking financial company if such a company ceases to conduct NBFC business in India or fails to abide by the conditions of its registration certificate.

• Besides, an NBFC can even deregister voluntarily if it satisfies certain conditions. Classification of NBFCs by RBI
• The RBI classifies NBFCs into four groups based on the size, type of activity, and risk of the NBFC.
• The upper layer consists of NBFCs that the RBI identifies as needing more intense regulatory supervision.
• The top ten NBFCs by asset size are always in the upper layer.

RBI’s de-Registration Process

• The RBI can cancel an NBFC’s registration certificate if it fails to comply with the conditions of its registration certificate.
• NBFCs that qualify under certain criteria can apply for voluntary deregistration.

Tata Sons’ Application for de-Registration

• Tata Sons applied for the cancellation of its core investment company (CIC) status on March 28, 2024.
  • Core Investment Company (CIC)
    • A Core Investment Company (CIC) is a type of non-banking financial company (NBFC) that invests in shares and securities of other companies in the same group. CICs are primarily focused on investment management, and do not engage in other financial activities like lending or asset financing. 
• RBI said that Tata Sons would continue to be an upper-layer NBFC as it processes its application.

2. Special Rupee Vostro Account

SRVA was launched in July 2022 to encourage the use of rupees in trade. SRVA stands for Special Rupee Vostro Account. It is a program that allows countries to settle international trade in the Indian Rupee (INR).

• How it works
  • Vostro account:
    • A domestic bank holds an account for a foreign bank in the domestic bank’s currency.
  • Invoicing:
    • All exports and imports are denominated and invoiced in INR.
  • Exchange rate:
    • The exchange rate between the trading partner countries’ currencies is determined by the market.
  • Settlement:
    • The final settlement is also in INR.
• Benefits
  • Reduces dependence on foreign currencies
  • Implements the use of the rupee as an international currency
• Examples
  • Russian banks opened SRVAs with partner banks in India to settle transactions for trade between them.
  • SRVAs have also been used by traders in importing pulses from Myanmar.

3. Foreign Exchange Management Act (FEMA)

Context:

Reserve Bank of India (RBI) amended the Foreign Exchange Management Act (FEMA) of 1999 to allow overseas branches of authorized dealer banks to open INR accounts for non-residents. This has been done with an aim of promoting the usage of the Indian rupee for cross-border transactions.

• What does it change?
  • Overseas branches of authorized dealer banks can open INR accounts for non-residents.
  • Non-residents can use their INR account balances to settle transactions with other non-residents.
  • Non-residents can use their INR account balances for foreign investments, including FDI.
  • Indian exporters can open accounts in foreign currencies overseas to settle trade transactions.
• What are the benefits?
  • These changes will facilitate cross-border transactions in rupees.
  • These changes will encourage the use of local currencies for cross-border transactions.
  • All this will facilitate use of the Indian rupee in global trade.
  • Non-Resident Transactions:
    • Settlement of the transactions between Non-Residents, through balances held in repatriable INR accounts.
  • Investment Support:
    • Balances held in repatriable INR accounts can be used for foreign investment.
  • Exporter Support:
    • Indian exporters can open overseas accounts in foreign currencies to settle trade transactions.
  • Implications:
    • Strengthening the role of the Rupee, facilitating trade transactions, and economic resilience.

4. Sebi’s New Regulations for Nominee Access and Assets Transfer

Context:

The Securities and Exchange Board of India (SEBI) implemented new rules for mutual fund and demat account nominations. The new rules aim to make it easier to manage assets in case of an investor’s death or illness. 

Key Changes

• Number of nominees: Investors can nominate up to 10 people for their accounts. 
• Nomination process: Investors must nominate people directly, and Power of Attorney holders cannot do so on their behalf. 
• Identification: Nominees must provide identification details like PAN, Aadhaar, or driving license number. 
• Asset distribution: Investors can specify how assets should be distributed among nominees, or the assets will be divided equally. 
• Joint accounts: Assets in joint accounts will automatically transfer to the surviving account holders. 
• Submission methods: Investors can submit nominations online or offline. 
• Reduced documentation: Only a death certificate and the nominee’s KYC (Know Your Customer) verification are required for asset transmission. 

Financial Safety for Families and Nomination Rules

Key Provisions on Financial Safety and Nomination Rules

• Nominee Authority Over Accounts:
  • Nominees can access financial resources of incapacitated clients to ensure family financial security during emergencies.
• Investor Account Access in Incapacity:
  • Nominees can operate accounts if investors are physically incapacitated but mentally capacitated.
  • Redemption proceeds are credited directly into the investor-linked bank account.

Benefits

• The new rules make it easier to manage assets in case of an investor’s death or illness. 
• The new rules reduce the need for affidavits and indemnity bonds, making it quicker and less burdensome for families to access assets. 

Limitations and Exclusions

• Exclusion of Critical Cases:
  • Investors in critical conditions are not covered, leading to concerns about potential misuse of redemption proceeds.

Issues with Banking and Regulatory Conflicts

• Power of Attorney (POA) Requirement:
  • RBI guidelines mandate a POA for nominee access to bank funds.
  • This creates potential conflicts with SEBI rules, requiring harmonization between regulatory frameworks.
• Joint Holdings and Inheritance:
  • SEBI rules transfer the share of a deceased joint holder to surviving joint holders, sparking concerns over fairness and clarity in inheritance.

New Provisions for Nomination and Transmission

• Multiple Nominations:
  • Up to 10 nominees allowed per account or folio.
  • Streamlined process with fewer required documents.
• Nomination Information Requirements:
  • Investors must provide:
    • PAN, driving license, or Aadhaar details.
    • Nominee’s contact information and relationship with the investor.

Recommendations and Issues

• Regulatory Harmonization:
  • Coordination between SEBI, RBI, and other regulators is essential to avoid conflicts and ensure smooth implementation.

Implementation Timeline

• Roll-out Date:
  • AMCs (Asset Management Companies) and depositories must implement the new rules by 1 March 2025.

Economy

1. World Bank Forecast India’s Growth

Context:

The World Bank has maintained its growth forecast for India at 6.7% for FY26, underscoring the country’s position as the fastest-growing major economy for the next two years.

India Economic Outlook

• World Bank keeps India’s growth forecast at 6.7% for FY26.
• Services and manufacturing sectors are expected to grow.
• Global growth is expected to be 2.7% annually in 2025 and 2026.
• Developing economies are expected to maintain steady growth at 4%.

Key Growth Drivers

• Private Consumption
  • Private Consumption strengthened by an improving labor market, expanding credit access, and declining inflation.
• Private Investment
  • Growth will be driven by rising private investment as corporate balance sheets are expected to improve and financing conditions ease.
• Fiscal Policy
  • Fiscal policy will also decline further with the pickup in tax revenues.
• Growth Challenges
  • Short-term: Slowing from FY24 at 8.2% to FY25 at 6.5% with an even weaker pick-up in investments and industrial activity.

2. Effects of Weakening Rupee in India

Critic Factors Fueling Devaluation:

• Capital Flight:
  • Fall in foreign investments boosts the demand for foreign currencies.
• Higher Import Bill:
  • The sharp hike in crude oil prices has worsened the current account deficit in India
• Change in RBI Policy:
  • Shift to a managed-floating exchange rate system again allows rupee to drop.
• Structural Issues:
  • An appreciating real exchange rate and increasing home prices erode export competitiveness in India.

Exchange Rate Regimes of India:

• The RBI intervenes by maintaining nominal exchange rate stability due to its foreign reserves under a fixed exchange rate.
• Floating exchange rate:
  • Market-based and the RBI does not interfere.
• Managed-Float Exchange Rate:
  • Preferable regime of India, whereby RBI balances exchange rate stability along with foreign exchange reserves.

Effects of Rupee Depreciation:

• Increases Exports:
  • Depreciation reduces the price of Indian goods in the international market, thereby increasing export competitiveness.
• Increases Output:
  • Increased demand for domestic goods may increase economic growth.
• Negative Impact:
  • Higher domestic prices, reduced real incomes, and reduced export benefits.

Recent Structural Constraints:

• NEER and REER Divergence:
  • Since 2019, India’s nominal effective exchange rate has depreciated, but real effective exchange rate has increased with domestic price inflation.
• Higher Markups:
  • Non-financial firms increased markups that decrease the pass-through effect of depreciation to export competitiveness.

Policy Implications

• Exchange Rate Policy:
  • Should India revert to the strategy of moderate depreciation pursued during the 2010s?
• Inflationary Cost Control:
  • Cut the mark-ups as a cost control measure for controlling inflation and gaining competitiveness.
• Clarity of RBI Policy:
  • Reversals of policies without adequate justification have eroded confidence.

Agriculture

1. Namo Drone Didi Scheme

Namo Drone Didi is a central sector scheme that seeks to empower women-led Self-Help Groups by providing drone technology for agricultural services. The scheme will equip 15000 selected women SHGs from 2024-25 to 2025-2026, generating an additional income of at least Rs. 1 lakh per year, contributing to economic empowerment and sustainable livelihood generation.

• Launch
  • 30 November 2023 
• Ministry
  • Ministry of Agriculture and Farmers Welfare
• Targets
  • Plan to provide drones to 15000 selected Women SHGs between years 2024-25 to 2025-2026
  • Plan to earn at least Rs. 1 lakh of additional income per annum for every SHG.

• Key Features
  • Key features are subsidy to Women DAY NRL-SHGs for drone purchase, loan facility from AIF for remaining drone cost, drone pilot training, and opportunity to earn additional 1 lakh PA through drone.
• Benefits
  • Empowerment of women through specialized training in drone technology.
  • Improvement of agricultural efficiency by precise application of pesticides and fertilizers.
  • Skill development and knowledge expansion through drone training.
  • Community and networking opportunities for women to connect with a supportive network.

2. SC Committee Report on Agrarian Distress in India

Context:

Recently, the Supreme Court (SC)–appointed committee has submitted its interim report on agrarian distress in India. The report has highlighted the severe state of crisis in India’s agriculture.

Key Findings of the Report:

• Income Crisis
  • Farmers make just Rs 27 per day through agricultural pursuits, it reflects the poverty
  • Average monthly income of agricultural households is Rs 10,218, far below basic living standards.
• Increasing Debt
  • Punjab and Haryana are burdened by the ever-growing debts of the farmers. In the year 2022-23, the institutional loans in these states are reported to be at Rs 73,673 crore and Rs 76,630 crore respectively.
  • Non-institutional debt contributes to the burden, 21.3% in Punjab and 32% in Haryana.
• Farmer Suicides
  • From 1995, over 4 lakh farmers and farm workers have taken their lives in India.
  • A house-to-house survey documented 16,606 suicides between 2000 and 2015, mainly small and marginal farmers and landless workers.
• Agricultural Growth has remained stagnant
  • Punjab and Haryana have faced stagnant growth in agriculture; hence low income levels and poor living standards for farmers.
• Proportionate Employment
  • 46 percent workforce is distributed in agriculture, while it only contributes 15 percent to the national income.
  • Many agricultural labourers earn low wages or suffer disguised unemployment, this deepens rural poverty.
• Impact of Climate Change
  • The depleting water tables, droughts, erratic rainfall and extreme weather events are aggravating the crisis further threaten food security and agricultural productivity.

Implication of the report

• Poor agriculture, large suicide rates and growing debt as well as inability to reform spell serious threat for the economy as a whole in the country
• The farming sector is threatening with a major food security crises if the things continue to work like this in the future.
• The persistent farmer suicides and increasing hopelessness in the farming community may lead to social unrest.

Facts To Remember

1. Singapore to aid semiconductor industry in India

• Singapore is exploring new initiatives such as building a semiconductor ecosystem in India and participating in the creation of a new generation of technological solutions, the city-state’s President, Tharman Shanmugaratnam

2. China to invest $3.7 billion in Sri Lankan refinery

• Sri Lanka has secured “one of its largest FDIs”, President Anura Kumara Dissanayake announced on Thursday, after signing an agreement worth $3.7 billion with Sinopec to build an advanced, oil refinery during his ongoing state visit to China.

3. The Tamils: A Portrait of a Community

• A host of eminent scholars, journalists, academics, artists and the who’s who of Chennai came together for launch of the book, The Tamils: A Portrait of a Community, written by Nirmala Lakshman, Chairperson, The Hindu Group Publishing Private Limited.

4. V.K. Singh sworn in as Governor of Mizoram

• Former Army chief V.K. Singh was sworn in as the 25th Governor of Mizoram in the northeastern State’s capital, Aizawl, on Thursday. He replaced Hari Babu Kambhampati, who took over as his Odisha counterpart. 

5. Manu, Vinesh and Avani nominated for BBC award

• Paris Olympics double medallist Manu Bhaker, left in pic., two-time Paralympics champion Avani Lekhara and ace wrestler Vinesh Phogat,  are among five athletes nominated for the BBC ‘Indian Sportswoman of the Year’ award. 

6. Former judge Arun Mishra appointed BCCI Ombudsman

• The former Supreme Court judge Justice Arun Mishra (retd) has been appointed as the Ombudsman of the Board of Control for Cricket in India (BCCI). 

7. Sun Pharmaceutical Industries

• Sun Pharmaceutical Industries has entered into a definitive agreement to acquire 100% stake in Antibe Therapeutics Inc., an Ontario, Canada incorporated clinical-stage biotechnological company developing novel drugs primarily focusing on reducing pain and inflammation. Antibe is under court-observed liquidation proceedings. 

8. Govt Amends Cable TV Rules: Online LCO Registration with 5-Year Validity Starts

• The Ministry of Information and Broadcasting has today issued a notification amending the Cable Television Network Rules, 1994, to streamline the local cable operator registration process. The registrations of local cable operators (LCO) will be conducted entirely online from today.

9. Minister Jayant Chaudhary Launches Solar Mobile Training Units to Boost Skill Development Across India

• Minister of State for Skill Development and Entrepreneurship Jayant Chaudhary today flagged off the Solar Community Hub Mobile Van Training Units in New Delhi. Speaking on the occasion, Mr. Chaudhary said these solar-powered mobile training units represent an innovative approach to empowering underserved communities by bringing education and opportunities directly to their doorsteps

10. India’s electronics exports surge 35% to record high in Dec 2024

• India’s electronics exports surged by 35.11 per cent to a two-year high of 3.58 billion dollars in December 2024 from 2.65 billion dollars in the same month of the previous year.