Current Affairs 22 February, 2025

Daily Current Affairs Quiz
22 February, 2025

International Affairs

1. India Pakistan Flag Meeting Held Amid LoC Tensions

Context:
Brigade Commander level flag meeting at Chakkan Da Bagh, Poonch. Focus of discussion was on latest skirmishes and how to minimise tensions. No joint statement issued, details remain undisclosed.

LoC Tensions: Cross border Firing and Skirmishes

• Incidents So Far
  • The Indian Army has accused the Pakistani Army of small arms firing on an Indian post on February 16.
  • Within 24 hours of the meeting, Poonch district reported two fresh blasts and firing. Security officials have kept the reason behind the explosion unclear.
  • The Pakistani newspaper Dawn reported that two Pakistani soldiers were injured as a result of an alleged ceasefire violation by Indian troops in Deva and Bagsar sectors.
• Ceasefire Commitments and Peace Efforts
  • The meeting was aimed at strengthening the 2003 & 2020 ceasefire agreements.
  • J&K CM Omar Abdullah welcomed the initiative and reiterated the need for de escalation.

Background

• While 2020 saw a joint ceasefire in place since then between India and Pakistan, the months passed have been replete with both sides accusing one another of ceasefire violations.
• Even allegations of unprovocative firing deter high measures to manage tensions.

The India Pakistan flag meeting may signify an attempt to curb rising tensions on the LoC, but continued violations in the ceasefire underscore the fragile nature of peace in the region.

2. India’s Foreign Policy

India-China Relations

External Affairs Minister S. Jaishankar met Chinese Foreign Minister Wang Yi on the sidelines of a G20 meeting held in Johannesburg.

Key Highlights:

• Regional cooperation on platforms such as G20, SCO, and BRICS.
• Building of mutual trust and maintenance of border peace.
• Upgradation on events since the Rio meeting.
• China’s Position: “Exchanges at all levels have been restored,” said Beijing.
• Other issues: Resumption of the Kailash Mansarovar Yatra, air services, river cooperation, and travel facilitation.
• Historical Background: These follow high level engagements, including NSA Ajit Doval’s visit to Beijing and the Ladakh disengagement agreement.

India Bangladesh Relations

Jaishankar met Bangladesh’s foreign minister Touhid Hossain in Oman.

Key Highlights:

• Bangladesh has called for a resumption of SAARC meetings, which have been stalled since 2016 because of Pakistan’s support for terrorism.
• Indian Response: “There’s no normalization of terrorism, as if the responsibility for terrorism lies on Pakistan.”
• India prefers BIMSTEC to SAARC in as much as it includes Thailand and excludes Pakistan.
• Context: Given Sheikh Hasina was in power and with her being the Prime Minister of Bangladesh for the last tender 4 terms, Bangladesh is looking to improve ties with Pakistan.

Status of India regarding Gaza & Ukraine War

• Gaza War
  • India has been striving for the two state formula as a mechanism to settle the Israel Palestine conflict.
  • Jaishankar welcomed the ceasefire at Gaza and humanitarian assistance but condemned terrorism.
• Ukraine Russian War
  • India reiterated its position that the conflict should be resolved by direct engagement between Russia and Ukraine.

These diplomatic engagements underscore India’s balancing act on regional security, global cooperation, and geopolitical conflicts.

National Affairs

1. PM Modi’s U.S. Visit

Context:

Official visits of U.S. officials accompanying Prime Minister Narendra Modi on this trip are seeing partners reassessing the precincts of a new economic, trade, technology, and defense agencies towards preliminary arrangements for greater industrial cooperation and a fresh global integration.

Bilateral Trade Agreement (BTA) & Economic Growth

• First phase of BTA started removing trade barriers and streamlining rules.
• $500 billion trade target by 2030, with sectoral sub targets for easy cross border trade.
• Tariff reductions on both sides will increase exports of industrial, agricultural, and labor intensive goods.
• Greenfield investments encouraged, Indian companies investing in U.S. markets.

Strategic Technology Partnership – TRUST & INDUS Innovation

• Defense technology development under the U.S. India TRUST Initiative will include:
  • Artificial Intelligence AI related semiconductors and quantum computing, biotechnology, and space.
  • Accelerate INDUS Innovation Initiative to R&D collaborations.
  • Investment roadmap of AI Infrastructure includes investments in computing power, data centers, and AI models.

Defense Cooperation Fortifying Industrial Linkages

• Newly initiated framework for U.S. India Major Defense Partnership for 10 years.
• Technology transfer and joint production agreements augment indigenous manufacturing in India.
• Potential offsets to strengthen partnerships of Indian industry within the global defense supply chain.

Energy Security & Clean Technology

• Increased India U.S. energy cooperation includes:
  • Hydrocarbon production for energy stability.
  • Small Modular Reactors (SMRs), leveraging U.S. expertise.
  • Trade in natural gas, to help India in its net zero targets.

Infrastructure & Digital Connectivity IMEC & Undersea Cables

• India Middle East Europe Economic Corridor (IMEC)
  • Joint rail, road and smart city projects involve United States participation.
  • Undersea cable projects are to strengthen India’s economy digitally and globally.

Higher Education & Legal Mobility

• American universities are setting up campuses in India to provide education of the world at home.
• India is streamlining visa and legal mobility processes to allow easier movement for students in this country.

PM Modi’s visit drafted a strategic blueprint for collaboration on economy, technology, and defense. It has trade agreements, tech partnerships, energy cooperation, and infrastructure growth; there is no doubt that India will lift its international standing while enhancing fortification with the U.S. Industry will also have to work with government to realize these ambitious goals.

2. India’s Push for Critical Minerals

Boosting Domestic Mining Under ₹16,300 Crore NCMM

• India plans to ramp up critical mineral auctions under the National Critical Mineral Mission (NCMM), with a target to auction more blocks before 2031.
• So far, 24 mineral blocks have been auctioned, while more are in the pipeline to reduce the import dependence.
• Public-Private Partnerships (PPP) need to play an important role in accelerating the exploration and extraction.
• ₹18,000 Crores of investment from the public sector is proposed to strengthen the domestic mineral supply chain.

Tapping Hidden Resources: The Mine Waste and Tailings Processing

• With high grade natural reserves being limited, India will treat mine waste and tailings as a critical mineral alternative.
• Tailings thus become secondary but certainly worth their weight in lithium, nickel, cobalt, graphite, and rare earth elements (REEs).
• The same tenet is in synchronization with global trends for sustainable mining and circular economy practice.

Overview of India’s Critical Mineral Reserves

• Lithium: 12.3 million tonnes-Critical for EV batteries and storage of renewable energy.
• Nickel: 189-194 million tonnes-Used in the making of stainless steel and batteries.
• Cobalt: 45 million tonnes-Important in lithium-ion batteries.
• Graphite: 211-244 million tonnes-Critical for electrodes and energy storage applications.
• Rare Earth Elements (REEs): 230 million tonnes-Required for high-tech applications like defence and electronics.

Challenges that Hinder India’s Mineral Aspirations

• Shortage of high-quality reserves for key minerals like cobalt, niobium, germanium, and rhenium.
• Scanty exploration data stumbles possibilities for investment: of the 49 EMR blocks, 24 still remain unauctioned.
• Technical and economic bottlenecks: Many deposits are too deep for the mining technologies in vogue, thus making the process costly and unviable.

Indian Strategy for Mineral Self-Sufficiency

• More aggressive mine auctions, with a focus on improved exploration data to attract global and domestic investors.
• Investment in advanced mining technologies would allow for the economic extraction of deep-seated deposits.
• Strengthen global partnerships in securing mineral supplies and refining capabilities.
• Establishing a robust critical mineral value chain that will help India in the EV and renewable energy and defence sector.

Thanks to strategic investments, technology-driven exploration and extraction, and policy backing, India is getting ready to become a key player in the global giant in critical minerals supply chains. Nevertheless, the challenges posed by exploration and extraction will be an important milestone to cross to realize this aspiration.

3. Proposed Reforms for Change in Broadcasting & DTH Services

Key Changes in DTH Service Provisions:

• Authorization Fee Reduction
  • 8% of AGR to be reduced to 3%
  • Planned elimination by FY 2026-27
• Less Bank Guarantee
  • ₹5 crore or 20% of the authorisation fee for two quarters, whichever is higher
• Interoperability of Set-Top Boxes (STBs)
  • Allowing choice and convenience for consumers
  • Infrastructure Sharing to the extent possible between broadcasters and telecom operators
  • Removal of ₹100 crore net worth requirement for IPTV service providers

Reforms in Broadcasting & Radio Sector

• New Unified Authorisation Framework under the Telecommunications Act, 2023 replacing traditional licensing
• No entry fees or processing fees for migration to the new system
• Two New Services Proposed
  • Ground Based Broadcasting of a TV Channel
  • Low-Power Small Range Radio Service
• Unification of Authorization Fees for the Radio
  • 4% of AGR across all cities
  • 2% for specified regions, 1st three years, thereafter it will revert to 4%

Radio Broadcasting Reforms

• Technology Agnostic in promoting the digital agenda
• No Auction for Terrestrial Radio Authorisation
• Service authorisation applied for by operators prior to spectrum auction

Impact

• More flexibility for broadcasters for infrastructure sharing
• Less cost for DTH & broadcasting operators
• More consumer choice with interoperable STBs
• Digital radio adoption encouraged

Banking/Finance

1. RBI’s Project Financing Norms

Context:

The framework that was put in circulation in May 2023 wanted to add impairment checks so that regulation is maximally strengthened and lending procedures are brought together across the banking, NBFC, and financial institutions fold.
Provisions, under the draft, mooted the requirement of 5% provisioning for construction projects, reducing to 2.5% upon completing the construction and further down to 1% for those that generate strong and steady cash flows. The banks contested that this was too high and wanted an upfront requirement of 1% during the construction period, which would later increase to 3% depending on delays.

(RBI) Project Financing Framework

• The project financing framework formulated by the Reserve Bank of India (RBI) aims to strengthen the regulatory backbone for long-term project financing. This framework would provide a uniform prudential framework for financing projects.
• Features of the RBI’s project financing framework
  • Revising the criteria for changing the date of commencement of commercial operations (DCCO) of projects 
  • Analyzing the risks inherent in such financing 
  • Requiring lenders to set aside 5 percent of their standard assets or loans to cover losses during the construction phase of the project 

Key Industry Concerns Brought Up for RBI’s Rebuttal

• Provisioning Burden
  • Banks are concerned that a 5% provisioning requirement would eat into profits, along with adversely affecting project viability.
  • They propose a graded provisioning based on the completion and delay of projects.
• Moratorium Period
  • The six month moratorium period in the draft is unrealistic as repayment schedules vary across projects.
  • The industry wants flexibility based on project specific grounds.
• Net Present Value (NPV) Concerns
  • The RBI draft suggests that a project must have a positive NPV for it to be eligible. Some banks argue that there must not be a credit event for temporary decline in NPV (due to change in cash flow projection), hence banks require the right to reverse provisioning if NPV recovers post construction.

RBI Position & Going Forward

• As for the ongoing review process, RBI governor Sanjay Malhotra has confirmed that all suggestions so far made are under consideration.
• He has given an assurance that any major changes will therefore be given a phased period for implementation.
• These likely final norms would balance the regulatory aspect within the set norms but also would heed the ground position from the industry.

As the consultations are thus set to restart, the concluded project financing norms would see some changes with respect to provisioning, moratorium terms, and NPV requirements. This decision will map the landscape of infrastructure financing in India and the resilience of the banking sector.

2. Guidelines for Govt. Securities by RBI

• Aim: helping long term investors in managing cash flows and interest rate risks.
• Implementation Date: May 2, 2025.
• Scope: Covers all over the counter (OTC) market transactions in India.

What Are Bond Forwards?

• Definition: A rupee interest rate derivative contract in which a buyer undertakes to buy a specific government security (G sec) from the seller at a pre-agreed future date.
• Function: To hedge interest rate movements by market players.

RBI’s Larger Initiative

• Improving Interest Rate Derivative Market
  • More derivative products for risk management, facilitating greater liquidity and price discovery in the bond market.
• Who Will Benefit?
  • Banks & Financial Institutions
  • Pension & Insurance Funds
  • Institutional Investors

In this move, the RBI strengthens its case in furthering its progress in making the financial market stronger and more diversified for the good management of interest rate risk.

3. RBI Rules Out Any Prepayment Penalty for Floating Rate Loans

New Guidelines (Draft Circular February 2025)

• No foreclosure or prepayment penalties on floating rate loans sanctioned to individuals (non business purposes).
• Business Loans
  • i. Penalty A floating rate loan would not attract a penalty for individual borrowers.
  • ii. Applies to all lenders except Tier I & II Primary (Urban) Cooperative Banks and Base Layer NBFCs.
• Objective
  • Flexibility from the borrower side
  • Reduction of financial burden on individuals and MSEs
  • Lending practices to be fair

These measures continue RBI’s legacies of welfare and importance actions to improve consumer protection and transparency in the financial sector.

4. RBI to Conduct USD INR Swap Auction

Swap Auction Key Features:

• Objective: The primary objective of this long term USD-INR buy/sell windfall is durable rupee liquidity infusion
• Size of the Auction: $10 Million
• Tenor: 3 years
• Bidding Method
  • Market players will be able to put in their bids according to the premiums they intend to pay (in paisa terms with two decimals)
  • Multiple price auction – Those bids that are successful will be honored at their respective quoted premiums

Market Impact & Expert Views

• The Second Swap Auction in a Month
  • On January 31, RBI had infused $5.1 billion with a six month swap
• Short Term Rupee Strengthening Expected
  • On the short term basis, this swap might actually stabilize the rupee by providing immediate liquidity support to counter the pressure on foreign fund outflows, said Dilip Parmar of HDFC Securities.
  • Spot USD/INR can be expected to move towards 86.30.
• Eligible Participants
  • Only Authorized Dealers Category 1 Bank will be eligible to participate in the auction.

Economy

1. PLFS on Unemployment

Context:

Within Q1 and Q3 of FY75, the urban youth unemployment rate increased in four states and in two UTs, while five states reported bringing it down further.

• Below are the states and UTs that have been the worst hit by rising unemployment rates:
  • Jammu and Kashmir: 35.3 from 29.8 percent.
  • Assam: 27.5 from 23.9 percent.
  • Bihar: 26.4 from 20.8 percent.
  • Madhya Pradesh: 15 from 11.2 percent.
  • Haryana: 12.9 from 11.2 percent.
  • Delhi: 4.9 from 3.7 percent.

• In contrast, however, decreasing unemployment was reported in five states:
  • Kerala: 24.9 percent to 27.7 percent.
  • Chhattisgarh: 20.3 percent to 23.3 percent.
  • Uttar Pradesh: 16.8 percent to 19.2 percent.
  • Maharashtra: 12.2 percent to 15.1 percent.
  • Gujarat: 8.2 percent to 8.3 percent.

Challenges

The International Labour Organization (ILO) noted that 83% of unemployment persons in India were youths, with the rise of educated job seekers (those with secondary and higher education) sharply increased from 35.2% in 2000 to 65.7% in 2022.

Looking Ahead A Policy Agenda

• Improving manufacture and MSMEs toward mass employment generation.
• Further enforcement job matching mechanisms through skill development programs.
• Attracting investments into states with increasing youth unemployment.”.

Agriculture

1. Does Indian Foodgrain Forget Monsoon?

Major Findings from PHDCCI Report

• Traditional Perception: Poor Rainfall leads to a decline in the food grain production.
• Recent Findings (2012 13 to 2022 23): With respect to foodgrain production, the “moderately positive” associations between rainfall and foodgrain outputs are only correlation.
• More Strongly Influencing Factors
  • Prices (WPI Food Articles)
  • Electricity Consumption
  • Fertilizer Availability
  • Irrigation Coverage
  • Weaker Influence
  • Warehousing Capacity

So what are the Implications & Policy Recommendations

• Reduced Monsoon Dependence
  • The agriculture sector morphed into modern infrastructure and input availability in India.
• Proposed actions
  • Science led farming
  • Increased private sector participation
  • Liberalized markets

India’s Innovating Food Processing Hub

• Market Growth Projections
  • $307 billion (2023) → $700 billion (2030)
  • $1100 billion (2035) → $2150 billion (2047)

Agriculture & Government Initiatives

• PM KISAN
  • The PM KISAN 19th upon sometime this February 24 in Bihar by PM Narendra Modi.
  • To Transfer: ₹22,000 crore, by which 98 million farmers will be credited.

Farmer Protests & Talks on MSP

• Next to Assemble: New round of talks of Govt and farmer unions in Chandigarh.
• Most Important Demand: Legal guarantee on Minimum Support Price (MSP).
• Farmers’ Demand: Government denied the meeting in Delhi.

Agriculture vs. Economic Performance: Top-Ranked States

(Based on Agri GSDP Growth & Overall Economic Growth, FY22-FY23)

Rank	State	Agri Rank	Overall Economic Rank
1	Uttar Pradesh	1	15
2	Madhya Pradesh	2	20
3	Rajasthan	3	19
4	Telangana	4	8
5	Andhra Pradesh	5	11
6	Maharashtra	12	1

2. Urban Farming

Context:

Urbanization challenges faster than ever and climate changes, food scarcity, and pollution have entered the arena. An article published in Sustainability states how urban farming can assist in any of these ecological problems by boosting food security, public health, and community association.

The Necessity of Urban Farming

• Traditional agriculture requires large tracts of land, water, and a slew of other natural resources that often degrade the environment through deforestation and pollution.
• Urban agriculture, requiring lesser land, could alternatively grow food on rooftops and balconies or any idle plot, thus reducing dependence on long food supply chains that would be severed by climate disasters.
• Fast-rising food prices owing to extreme weather events caused by climate change’s acts on crops. Contrariwise, urban farms use controlled environments to supply fresh foods all year round, consequently cooling cities, cleaning the air, and purifying the environment.

Urban Farming Technological Innovations

This agricultural enterprise maximimizes food production out of utmost efficiency while combining agriculture with modern technology for limited spaces:

• Hydroponics: The development of plants in nutrient-rich water as opposed to soil. This hastens growth and saves water.
• Vertical Farming: Crops grown indoors under highly controlled environmental conditions within stacked layers to save space.
• Aquaponics: Combining the farming of fish and plants in a mutually beneficial way whereby fish wastes fertilize the plants and the plants purify the water for the fish.

Urban farms also manage waste by composting food scraps or turning it into energy, thus providing the greenest means of farming.

Impacts of Urban Farming on Cities and People

• Urban farming can put food into the hands of inhabitants of the city, but it is also able to provide the following benefits to urban life:
• Converts empty spaces into green areas which have positive effects on mental health.
• Fosters a sense of community in support of socialization and skill-sharing through community gardens.
• Creates jobs and trains in sustainable farming practices, business, and technology.
• Lessens carbon emissions through reduced food transportation, and hence less fuel consumption and pollution.

The Future of Urban Farming

• The need for cities to grow more of their own food as climate change intensifies. Developments in renewable energy, organic fertilizers, and waste to energy solutions promise to increase the efficiency of urban farming. Governments and businesses certainly play a great role in promoting sustainable farming policy and innovation.

The Business Role in Urban Farming

• To nurture development, urban farming must receive investment by:
  • Eco farming technologies including hydroponics and smart irrigation.
  • Urban green initiatives that foster further sustainable urban food production.
  • Collaboration with specialists and farmer cooperatives to scale local food production and minimize waste.

Urban farming is not something to consider for a passing moment; it is a necessity for the future. Through effective use of small spaces, resource wastage can be greatly reduced as cities become greener, healthier, and self-dependent. With a collaborative effort by many stakeholders, urban farming can go a long way in restoring sustainability to our Earth.

Facts To Remember

1. Senate confirms Kash Patel as FBI director

New FBI director Kash Patel has vowed to “rebuild” trust in the bureau as he becomes the first Indian-American to lead the country’s premier law enforcement agency after being confirmed by the U.S. Senate.

2. Trump says Zelenskyy’s presence ‘not important’ in talks to end war

U.S. President Donald Trump said he does not consider it essential for Ukrainian President Volodymyr Zelenskyy to be present at negotiations aimed at ending Russia’s war in Ukraine.

3. Mini-Arab summit seeks united position on Gaza crisis

In a bid to convey a united position regarding the Trump administration’s plans for Gaza, Saudi Crown Prince Mohammed Bin Salman hosted the leaders of the six Gulf Cooperation Council member states and Jordan and Egypt.

4. Sneha wins second title in three starts in women’s golf

Sneha Singh came up with a bogey-free 5-under 66 in the third round to pip Vani Kapoor by one shot in the third leg of the Hero Women’s Pro Golf Tour event at the Poona Club golf course.

5. PM Modi to Release 19th PM-KISAN Installment, ₹22,000 Cr to Benefit 9.8 Crore Farmers

Prime Minister Narendra Modi will release the 19th instalment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme on Monday from Bhagalpur, Bihar. The scheme provides six thousand rupees annually to landholding farmers in three equal instalments.

6. PM’s Awards for Excellence in Public Administration: Over 1,500 Nominations Received, Winners to Be Honored on Apr 21

Over 1,500 nominations were received for the Prime Minister’s Awards for Excellence in Public Administration, 2024. The awards aim to recognise the contribution of civil servants under three categories.

7. HM Amit Shah Announces 1st Regional Office of Central Register Cooperative Society in Pune

Union Cooperation Minister Amit Shah has said that the cooperative sector has gained significant momentum over the past three years due to the Centre’s efforts. Speaking at the diamond jubilee celebrations of Janata Sahakari Bank in Pune this afternoon, he said the Modi government has made India’s cooperative sector marketable.

8. Gulveer Singh makes history by becoming first Indian to break 13-minute barrier in Men’s 5000 m Indoor Race

In athletics, the Hangzhou Asian Games bronze medallist Gulveer Singh has made history by becoming the first Indian to break the 13-minute barrier in the men’s 5000 metre indoor race.

9. Union Education Minister Dharmendra Pradhan asserts new National Education Policy designed to elevate India to global level

Union Education Minister Dharmendra Pradhan has emphasized that a new National Education Policy has been envisaged to take India to the global level.

10. Union Minister Shivraj Singh Chouhan inaugurates Pusa Krishi Vigyan Mela 2025 in New Delhi today

Pusa Krishi Vigyan Mela began in New Delhi today. The theme of the three day fair is Unnat Krishi – Viksit Bharat. Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan inaugurated the event.

11. Indian Army to participate in India- Japan Joint Military Exercise, DHARMA GUARDIAN from Feb 24

The Indian Army contingent, comprising 120 personnel, departed today for the 6th edition of India- Japan Joint Military Exercise, DHARMA GUARDIAN. The exercise is scheduled to be conducted in the East Fuji Maneuver Training Area of Japan from the 24th of February to the 9th of March.

12. RBI imposes monetary penalty of Rs 39 lakh on Citibank

The Reserve Bank of India, RBI has imposed a monetary penalty of thirty nine lakh rupees on Citibank for non-compliance with certain directions related to Large Exposures Framework and Furnishing of Credit Information to Credit Information Companies.