Current Affairs 23 January 2025

Daily Current Affairs Quiz
23 January, 2025

International Affairs

1. US Export Controls on AI Chips!

Context:

The US Bureau of Industry and Security BIS introduced a tiered framework for controlling exports reexports and incountry transfers of AIrelated technology. The aim is to align with national security and foreign policy interests and to foster a secure and trusted technology ecosystem for AI.

Scope of Technology Regulated

Target specifics include advanced computing chips and closed AI model weights in particular.
AI models are simply software programs performing mathematical calculations in producing outputs such as analysis or even media. The pattern of these operations, called the architecture of the model, determines its performance.

Proposed Framework

• Tier 1
  • Unrestricted access for 18 US allies including Australia, Canada, South Korea and the UK.
• Tier 2
  • Access is denied with volume caps and needs authorization specifically for chips destined for highly sophisticated AI models.
  • China and India fall into this tier and require VEU authorization for sensitive transactions.
• Tier 3
  • No access for arms embargoed countries like North Korea Iran and Russia.

Rationale for Restrictive Measures

• Prevent technology from reaching countries of concern or adversaries
  • Address risks such as:
    • Enhanced military capabilities of adversaries.
    • Development of weapons of mass destruction.
    • Offensive cyber operations.
  • Human rights abuses like mass surveillance.
  • Reduce the risk of Chinese companies using foreign subsidiaries to circumvent controls.

Impact on India

• Indian data centers will need VEU clearance to process the advanced AI chips.
• Indian companies with VEU clearance will be allowed to use the technology for civilian and military purposes but not for nuclear-related applications.
• Experts say India does not fit in the Tier 1 category of trusted allies, possibly due to chip leakages to Russia.

AI Chips

2. Trump warns of tariffs against EU and China

Context:

U.S. President Donald Trump pledged to hit the European Union with tariffs, adding that a 10% duty on Chinese imports could also come as soon as February 1, 2025.

Tariffs on BRICS Nations!

3. Russia-Ukraine War

Context:

U.S. President Donald Trump told his Russian counterpart Vladimir Putin to make a deal to end the grinding Ukraine war “now” or face tariff hikes and more sanctions.

Background of the Conflict

• Post Soviet Independence
  • Ukraine gained independence in 1991 after the collapse of the Soviet Union.
  • Russia has since sought to keep Ukraine in its orbit.
• Crimea Annexation
  • In 2014, Russia annexed Crimea which provided it with a strategic maritime advantage.
  • Separatist insurgency in Ukraine’s eastern Donbas region was supported by Russia.

Ukraine to Russia

• Cultural and Historical Ties
  • This region has deep cultural linguistic and historical bonds with Ukraine and Russia.
• Strategic Location
  • Access to the Black Sea and connectivity to the Mediterranean Sea are crucial for Russia.
• Economic Significance
  • Ukraine’s industries agriculture and defense manufacturing are vital to regional trade.

Reasons for Russian Aggression

• Economic Factors
  • Russia wanted Ukraine to join the Eurasian Economic Community (EAEC) but Ukraine refused impacting Russian economic ambitions.
• Geopolitical and Strategic Factors (NATO)
  • NATOs eastward expansion perceived as a threat by Russia is a key concern.
  • Worries of the Russians about these plans do heighten with the missile defense systems that NATO plans to install in Eastern Europe.

Latest Developments

• Russian Military Build Up
  • More than 10,00,00 Russian troops have been stationed at Ukraine’s border.
  • Russia insists that NATO guarantee them they would not allow Ukraine and Georgia to join the alliance.
• Western Response
  • The US has promised decisive action including economic sanctions in case of Russian aggression.
  • Germany threatens to stop the Nord Stream 2 pipeline if Russia invades Ukraine.

Implications for India

• Strategic Balancing
  • India needs to balance its relations with Russia and the Western alliance.
• CAATSA Sanctions Risk
  • India’s defense cooperation with Russia including the S400 deal could attract US sanctions.
• Impact on Indian Diaspora
  • The crisis is threatening thousands of Indian students and workers in Ukraine.
• Geopolitical Implications
  • Russia-China ties if consolidated would pose a challenge to India’s strategic interests.

India’s Position

• Supports diplomatic solution to the crisis.
• Keeps its distance from voting against Russia at the UN.
• Favors the status quo since 2014 in Crimea.

Current War Situation in Ukraine

Escalation of Western Involvement

• Supply of Sophisticated Arms
  • The Western world has recently announced further supplies of sophisticated arms to Ukraine indicating more significant involvement in the war.
  • This further escalates tensions between Russia and NATO, thereby increasing the chances of a direct clash between these nuclear powers.
• Fortified Frontlines
  • Russian President Vladimir Putin has consolidated his troops along the 1000km frontline in Ukraine.
• Unrealized Goals
  • Russia initially wanted to set up a pro Moscow regime, occupy Ukraines east and south and transform it into a landlocked country. None of these objectives have been realized.
• Russia’s High Point Control
  • By March 2022 Russia controlled some 22 of Ukraine’s territory before 2014 including strategic locations like Mariupol.
• Ukraine Counter Attacks
  • Ukraine recaptured areas in Kharkiv and Kherson bringing the Russian control level down to approximately 17.

National Affairs

1. EPFO Added 8.74 Lakh New Members!

Context:

The Employees’ Provident Fund Organisation enrolled around 8.74 lakh new members, registering an 18.8% rise from the figure in the corresponding period in 2023, the Union Labour Ministry said. 

Employees’ Provident Fund Organisation (EPFO)

EPFO 3.0

2. Beti Bachao Beti Padhao Scheme Achievements

Background

• Launched in 2015 The Union government launched the BBBP scheme with the motive to reduce the existing gender imbalance in India and work towards the survival protection and education of the girl child.
• Expanded Scope
  • Starting with a narrow scope the scheme gradually increased its focus areas to issues like menstrual health and girls participation in sports.

Know more about: Beti Bachao, Beti Padhao (BBBP) Scheme

Achievements of BBBP

• Improvement in Sex Ratio at Birth
  • The sex ratio at birth showed steady improvement increasing from 919 girls per 1000 boys in 2015 to 929 girls per 1000 boys by 2020-21.
  • The number of missing baby girls is also lesser, decreased from 4,80,000 in 2010 to 4,10,000 in 2019.
• Maternal Health
  • The scheme has also improved the registration of pregnancies and institutional deliveries thereby leading to improvement in the care of the mother.
• Educational Impact
  • The Gross Enrolment Ratio (GER) of girls in higher secondary education went up from 5641 in the years 2015-16 to 582 in 2021-22.
  • At the secondary level GER decreased marginally yet remained high.
  • Scholarships and campaigns encouraging parents to educate their daughters improved school enrolment.

Restrictions and Challenges

• Slow Pace towards Gender Equality
  • Despite having some achievements the overall gender gap with families still wanting sons is deeply ingrained 80 of respondents in the National Family Health Survey (NFHS) wanted at least one son
• School Dropout Rates
  • Gender based dropout rates continue to be prevalent girls drop out more frequently than boys at preparatory and middle levels due to early marriages household chores and inadequate sanitation facilities.
  • In secondary school the trend was reversed and the dropout rates stand as a huge barrier to equality in educational contexts.
• Underutilization of Funds
  • In between 2016 and 2019, 80% of the funds allocated for the scheme were spent on media campaigns which points to misappropriation of the available resources.
• Limited Impact on Societal Norms
  • Society has remained impervious to changes towards gender due to BBBP, though the  Global Gender Gap Report continues to reflect low standing of India with regards to pace of its progress towards achieving gender balance.
• Global Gender Gap Report 
  • India has slipped two places in the global rankings to 129th in 2024 from 127th in 2023 out of 146 countries. Within South Asia, India ranked fifth after Bangladesh, Nepal, Sri Lanka, and Bhutan.
  • Published By
    • World Economic Forum

Future Recommendations

• Strengthen Programs of Education and Retention
  • Look into causes of girls dropout, basically early marriages, lack of sanitation facilities from schools and even generally retain every learner.
• Much Better Use of Resources
  • Clearly more transparent and accountability in the funds used to pump resources into endeavours impacting more than that of the campaigns in the press.
• Social Change and Culture
  • Continuing efforts in awareness campaigns, community outreach, and policy formulation that advocate for gender-neutrality in family planning.
• Gender Parity Investment
  • This implies that policymaking should be gender equality’s first priority not for the sake of equity but rather for longterm economic growth and prosperity.

Some Important Schemes Related to Women Empowerment and Child Development

3. Jute Industry in India

Context:

The Cabinet Committee on Economic Affairs (CCEA) has fixed the minimum support price (MSP) of raw jute for the 2025-26 marketing season at ₹5,650 a quintal, an increase of ₹315 over the price in 2024-25.

Jute Fibre

Definition and Properties

• Plant Fibre
  • Jute fibre is a natural plant fibre known for its ability to be spun into strong and coarse threads.
  • It is soft long and shiny making it versatile for various applications.
• Primary Producers
  • The genus Corchorus is the largest source of jute fibre.
• Characteristics
  • Bast fibres derived from the phloem or bast which is part of the stem of the plant.
  • Color Brown to off white in color.
  • Also called the golden fibre due to its color and cash value.

Chemical Composition

• Lignin
  • It is a group of complex organic polymers giving rigidity and strength to the fibres.
• Cellulose
  • An organic polysaccharide made of a straight chain of hundreds or thousands of Dglucose molecules.
  • Responsible for the fibres flexibility and durability

Uses

• Commonly used to make
  • Gunny cloth
  • Hessian cloth
  • Burlap cloth

Economic and Commercial Importance

• Cost Effectiveness
  • Jute is one among the most inexpensive plant fibers next to cotton.
• Versatility
  • Its renewable and biodegradable nature makes it a widely used element in sustainable and ecofriendly applications.

Ideal Condition for Jute

Jute grows best in a warm, humid climate with well-distributed rainfall and fertile, well-drained soil. 

Rainfall

• Jute needs 160–200 cm of rainfall annually, with extra rainfall during the sowing season.
• Locations with less than 1,000 mm of rainfall or water logging are not suitable for jute. 

Temperature

• Jute grows best in temperatures between 24–38°C. 
• Temperatures below 15°C and above 43°C are not suitable for jute growth 

Soil

• Jute grows best in fertile, well-drained, alluvial, or loamy soils. 
• The ideal pH range for jute is 4.8–5.8 

Climate

• Jute grows best in a warm, humid climate with alternate sunshine and rainy days.
• Relative humidity of 70–90% is ideal for jute growth. 

Potential of the Jute Industry

Economic Significance

The jute industry is one of the important sectors of India’s economy, particularly in the eastern region, and West Bengal is prominent among these.

• Eco Friendly Features
  • Jute is known as the golden fibre and is a natural renewable biodegradable and ecofriendly material. Hence it is the best option for sustainable packaging solutions.

India in Global Jute Production

• Global Leader
  • India is the worlds largest producer of jute accounting for 70% of the global jute output.
• Concentration in West Bengal
  • Of the 108 composite jute mills in India 79 are located in West Bengal accounting for 73 of the industry’s concentration.
• Employment
  • About 37 lakh workers are directly employed in the industry
  • Around 90% of jute production is consumed domestically.
• Import of Raw Jute
  • India had imported 1,21,260 MT of raw jute mainly from Bangladesh. Procurement costs to meet quality for added value products had been very high.

Challenges in Jute Industry

• Procurement Costs
  • The procurement cost was very high and sometimes even more than the selling price for the mills because of the involvement of middlemen and traders.
• Raw Material Supply
  • Inadequate raw jute availability domestically restricts production.
• Old Infrastructure
  • Old machinery and old mills reduce efficiency and competitiveness.
• Competition
  • Lower synthetic materials and other fibers like mesta impact jute demand.
• Labour and Infrastructure Problems
  • Labour strikes and poor infrastructure such as electricity and transportation hinder operations.

Major Producers

• India is the world’s largest producer of jute followed by Bangladesh and China. Cultivated mainly in West Bengal, Assam and Bihar the three states combined account for nearly 99 of the total production.

Jute Organisations

• Jute Corporation of India Limited (JCI)
  • This is a public sector undertaking set up in 1971. The objective of JCI is to safeguard the interest of jute growers and stabilize the price of raw jute.
• National Jute Board (NJB)
  • NJB is a statutory body and was constituted during the year 2010. NJB provides yield and quality promotion of jute and assists raw jute by improving its marketing and price stabilization.
• Office of the Jute Commissioner
  • An organization related to jute.

Government Schemes for Promoting the Jute Industry

• National Jute Development Programme (NJDP)
  • It is a scheme initiated for promoting and developing the jute sector. Other schemes associated with NJDP include Jute ICARE, JRCPC, JRMB, and JRO.
• Jute Technology Mission (JTM)
  • This scheme was undertaken with an aim to upgrade the quality and yield of jute fibers.
• ISAPM
  • Incentive Scheme for Acquisition of Plant & Machinery: The scheme is meant to provide incentives to jute mills and MSME-JDP units for acquiring new machinery.
• JRMB
  • Jute Raw Material Bank: The scheme provides jute raw material to jute artisans and MSMEs at Mill Gate Price.
• JRO Scheme
  • Jute Retail Outlets Scheme: The scheme is meant to help artisans and entrepreneurs promote and sell jute diversified products (JDPs).
• Jute Mark India Logo
  • A plan for the authenticity certification of jute products.
• Jute Integrated Development Scheme (JIDS)
  • The scheme offers training to artisans and WSHGs to manufacture JDPs.
• Subsidy Program
  • A plan under which subsidies are given to the jute industry.

The schemes are implemented by the National Jute Board, which is an attached office of the Ministry of Textiles.

3. U.S. Withdrawal from Paris Climate Deal

Context:

US Withdrawal from Paris Climate Deal and Global Climate Action and India.

Global Consequences

• US Withdrawal
  • Although, US President Donald Trump has announced his formal withdrawal from the Paris climate agreement experts believe that global climate action will continue to gain momentum.
• Continued Global Commitment
  • The transition towards renewable energy, electric mobility and energy efficiency is expected to persist driven largely by private investments and government schemes especially in countries like India.
• Financing for Clean Energy
  • The US exit may impact global resource flows for financing the clean energy transition but private sector investments in green technologies are likely to remain strong.

India’s Climate Leadership

• Grabbing the Vacuum
  • With the US relinquishing ground India is likely to step up its game for the strengthening of its green energy policies and come out as a climate leader among the developing nations.
• Energy Transition
  • India has also agreed to achieve targeted objectives such as 500 GW non fossil fuel capacity by 2030 in contrast to the current level of 200 GW.
• Net Zero by 2070
  • India aims to be a net zero economy by 2070 in this way its longterm strategy works out in line with global climate goals.
• Leadership in Global
  • South India is one of the players to represent the interests of Global South in climate negotiations and that pushes forward the global clean energy shift.
• Climate Finance Challenges
  • The US exit may not resolve the stalemate on climate finance directly but it adds pressure on developed nations to fulfill their financial commitments.
• 100 Billion Fund
  • This commitment by developed nations to raise 100 billion annually for climate was to start in 2025. However the plan has been slowed down Wealthy states are demanding a more ambitious promise of 300 billion annually by 2035 but this is highly contested.
• Indias Stand
  • India has categorically stated that it does not depend on international climate funds to meet the green objectives, but still continues to campaign for a strong funding system for more developed countries.

Economic Impact and Opportunity

• World GDP
  • Loss In 2022 the world lost about 14 trillion of its GDP in terms of climate change which India lost 8 of its GDP making the need for urgent climate action important.
• Indian Budget
  • It is a time for the government to prioritize climate policies and present India as a leader in green growth so the nation remains ahead of global climate targets.

Paris Agreement

Banking/Finance

1. SIPs Proposed Features of Sachetised Mutual Funds by SEBI

Context:

The Securities and Exchange Board of India (SEBI) hopes to increase the participation of mutual funds mainly among low income groups by providing a sachetized mutual fund product through small ticket.

Systematic Investment Plans SIPs Proposed Features of Sachetised Mutual Funds

• Small Ticket SIPs
  • Minimum investment amount of 250 per SIP.
• Aims
  • Aims to render investments in mutual funds accessible to the broader population with a focus on those who lack significant financial resources.
• Mutual Fund
  • A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.  The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds.

Eligibility Criteria for Schemes

• Most mutual fund schemes except
  • Debt schemes
  • Sectoral and thematic schemes
  • Small cap and mid cap equity schemes
• Reason for the Proposal
  • Deepening of Financial Inclusion
  • Facilitates the entry of low income individuals.
  • Induces small periodic savings and helps in cultivating the habit of saving.
• Bigger Investors’ Base
  • Reaches mutual funds to unexplored so far.
  • Is in line with the initiatives of SEBI to enlarge the retail participants in the capital markets.

Challenges to Keep in Mind

• Operational Costs
  • Co-management of smaller ticket size may raise the administrative cost of mutual fund houses.
• Education and Awareness
  • Effective outreach will educate the low income groups about the benefits and risks of investments in mutual funds..

Source: The Hindu

2. UPI Circle

Context:

UPI Circle is a new BHIM UPI feature where a primary user can authorize a secondary user to make payments directly from the former’s bank account. This adds more convenience in managing finances for families, especially for elder family members, while still having control and security over the transactions.

Key Features of UPI Circle

• Delegation of Payments
  • This means that the primary user can allow up to five secondary users to perform transactions using their account. The secondary user, on the other hand can accept only one delegation from a primary user at a time.

Transaction Limits

• Full Delegation
  • Primary users can make payments on their behalf for up to ₹15,000 in a month. That is, they can use up to ₹5,000 per transaction.
• Partial Delegation
  • The secondary user would need to approve every transaction with the primary user. There is no fixed cap on transactions, however, any UPI limits available to the primary user remain.
• Control and Transparency
  • With each transaction, there will be instant SMS notifications for the primary user.
  • Authorizations can be cancelled at will by primary users.

How UPI Circle Works?

• Registration and Setup
  • Download BHIM UPI and link your bank account.
  • Select the UPICircle option.
  • Add secondary users by entering their phone numbers or UPI IDs.
  • Set the delegation type (partial or full) and define transaction limits.
• Usage:
  • Secondary users can make payments directly from the primary user’s account within the set limits.
  • Notifications ensure transparency and allow the primary user to monitor transactions.

Benefits and Use Cases

• Convenience for Families
  • Senior citizens can delegate payments to family members without worrying about complex interfaces or errors.
  • Parents can give permission to the children to make required payments at travel, food, or stationery while maintaining control over spending.
• Simplified Transactions:
  • Transfers between accounts are not required, thus making it much easier for financial management.
  • The hassle of account statements is reduced since it directly debits the account of the primary user.
• Security
  • Risk of financial loss through monthly transaction limits.
  • Security can be maximized by taking back the authorization capability. As of now

Source: Mint

Unified Payments Interface (UPI)

3. Violation of Companies Act

Context:

HDB Financial Services’ IPO: Regulatory Watch for Violation of Companies Act

Background

• Incident in 2008
  • HDB Financial Services may have broken the Companies Act 17 years ago by providing free shares to more than 50 workers in HDFC Bank, its parent company, by private placement.
  • The Sebi has found 12 million shares were given preferentially allotted to 410 employees in January 2008.
• Violation of Public Issue Provisions:
  • For issuing shares with more than 50 investors, it is a public issue under the Companies Act which requires Sebi clearance.

Bonus Issue

A bonus issue is when a company gives free shares to its existing shareholders. This is done by capitalizing on the company’s accumulated reserves from previous years’ profits. 

Explanation 

• A bonus issue is a way for a company to distribute shares to its shareholders without charging them.
• The shares are issued from the company’s free reserve or share premium account.
• The number of shares issued is based on the number of shares each shareholder held on a record date.

SEBI and bonus issues 

• SEBI regulates the issuance of securities by companies.
• Companies must follow certain rules and regulations when issuing securities.
• SEBI also regulates the pricing of securities issued by companies.

Regulatory Actions and Legal Consequence

• Reference to Ministry of Corporate Affairs (MCA)
  • Sebi plans to refer the case to the Union Ministry of Corporate Affairs (MCA) to check if the issuance amounts to a violation of the Companies Act.
  • If it is a breach, HDB Financial Services could face penalties or be temporarily barred from the market.
• Possible IPO Impact
  • The violation could impact HDB Financial’s $1.5 billion IPO. The company may have to pay a penalty or amend its IPO application to get clearance.
• Legal Interpretation
  • The issuance may be classified as a public or preferential issue. If it were an Employee Stock Option Plan, no Sebi approval would have been required.

Source: Mint

Economy

1. Principal Purpose Test (PPT)

Context:

The Income Tax department has come out with a fresh guidance note on applicability of Principal Purpose Test (PPT) for claiming tax treaty benefits, which will apply prospectively. The PPT will apply prospectively and aligns with India’s commitments to address treaty abuse as part of the Base Erosion and Profit Shifting BEPS framework.

Principal Purpose Test (PPT)

The “Principal Purpose Test” (PPT) is a tax treaty mechanism used to deny benefits to transactions where the primary motivation is to obtain a tax advantage through treaty shopping, rather than a legitimate business purpose. It prevents tax avoidance by scrutinizing the “principal purpose” of a transaction when claiming treaty benefits.

• Objective
  • To avoid taxpayers from artificially structuring transactions only to avail of tax benefits under a treaty, not for any genuine economic activity.
• How it works?
  • Tax authorities assess whether, based on all relevant facts and circumstances, “obtaining a treaty benefit“ was one of the principal purposes of the transaction. If so, the treaty benefit may be denied.
• Subjective element
  • The test is partly subjective because it involves assessing the intentions and motives behind a transaction.
• Objective element
  • Despite being subjective, the PPT is also concerned with whether granting the treaty benefit would be consistent with the general object and purpose of the applicable treaty provision.

Where is the PPT applied?

• Multilateral Instrument (MLI)
  • Most countries have incorporated the PPT into their tax treaties through the MLI, a multilateral agreement designed to implement BEPS action plan measures.
• Example of how PPT might be applied
  • A company located in a high-tax country forms a subsidiary in a low-tax treaty jurisdiction to have profits flow through that subsidiary, so it may obtain a reduced tax rate by invoking the treaty. If the tax authorities decide that the “principal purpose” of this plan is to use the treaty, they could withhold the treaty benefit and tax the income at the higher domestic rate.

Important Clarifications on PPT

• Scope
  • The PPT provisions will apply prospectively and therefore will affect only claims for treaty benefits going forward Tax authorities are also advised to refer to BEPS Action Plan 6 and the UN Model Tax Convention for further guidance on this issue.
• Treaties with Cyprus
  • Mauritius and Singapore have grandfathering provisions specifically carved out of the PPT.
  • Bilateral commitments are protected and continue to be governed by the provisions in the respective Double Tax Avoidance Agreements (DTAAs).
• Treaty Specific CarveOut
  • The guidance confirms that PPT provisions do not override treaty specific grandfathering clauses.
  • This clarification ensures consistency with prior commitments in treaties with the three nations.

Implications For Taxpayers

The enhanced clarity regarding the applicability of PPT provisions helps to reduce uncertainty in treaty benefit claims Businesses and investors who are relying on grandfathering provisions in treaties with Cyprus Mauritius and Singapore are not impacted by the PPT rules.

For India’s Tax Framework

It indicates that India takes seriously its need to reconcile its antiabuse efforts under the BEPS action plan with its treaty obligations on a bilateral basis. The guidance should further facilitate the smooth implementation of revised treaty protocols and enhance tax certainty for foreign investors.

Source: The Hindu

2. Income Tax Cuts

Context:

Income Tax Cuts is expected in the Upcoming Budget A Consumption Spurring Policy.

Why Income Tax Cuts?

• Slowdown in Consumption
  • There is a deceleration of consumption in India’s economy due to stagnating real wages and inflationary pressures.
  • There is therefore an excellent case for income tax cuts in the upcoming budget to boost disposable income and to stimulate demand.

Current Tax Exemption Limit and Inflation Adjustment

• Tax Exemption History
  • The tax exemption limit for income was 25 lakh five years ago which when adjusted for inflation would need to be 31 lakh for 202425 to maintain the same purchasing power.
  • The exemption limit is currently 3 lakh for those earning above 7 lakh This increase does not fully account for inflation which effectively raises the tax burden for many taxpayers.

Impact on Different Income Groups

• Low and Middle Income Groups
  • The tax relief in the earlier budget July 2024 did not provide much of a benefit for the low income group. With inflation adjustment the relief benefits them very little by way of the increase in purchasing power.
  • For the category of 7 lakh to 15 lakh the situation is a little better but it still fails to factor into account the aspect of inflation.

• High Income Groups
  • Individuals earning above 15 lakh continue to pay the top tax rate of 30 which has remained unchanged since 2020-21.
  • To maintain the same purchasing power individuals would need to earn 186 lakh in 202425 but they are still taxed at the same rate as in previous years.

Impact of Wage Growth Slowdown

• Real Wage Growth
  • The wage growth which was already significantly lower in the recent quarters now has been severely cut off to the levels prevailing pre pandemic.
  • Coupled with this is a higher inflation level and not getting enough tax relief urban Indians have had the purchasing power clipped even more.

Source: Mint

Agriculture

1. Digital Farmer Services

Context:

The AgTech platform DeHaat has bought the Olam Agriowned farm advisory platform AgriCentral through an allcash deal via business transfer agreement. The acquisition will add to DeHaats services and increase its outreach as AgriCentral reaches out to more than 10 million smallholder farmers.

Impact on DeHaats Services

• Expansion of Digital Farmer Services
  • The acquisition will strengthen DeHaats existing digital ecosystem allowing it to offer comprehensive agri value chain services to a wider audience.
• Insurance and Cattle Advisory Services
  • It will help DeHaat to render precision advisory mechanization insurance and cattle advisory services to its farmers and improve their livelihoods.
• Benefit of Acquisition
  • After the acquisition the outreach of DeHaat will touch 12 million farmers by reaching it at the number one position as agritech in India.

Agri Central Features

Overview of the Platform

AgriCentral Founded in 2018 is an advisory to farm platform for which it claims serving over 10 million farmers of India with:

• In real time real crop price.
• The option of customizable crop planning. 
• Crop Diagnostics
  • These interactive platforms on the field that help it understand the customer requirements and present an opportunity at such a grassroots level.
• By building on DeHaat AgriCentral brings digitally effective capabilities within affordable costs in an effort for improvement.

2. Digital Agriculture

Digital Transformation in Indian Agriculture

The Indian agricultural sector is witnessing a digital transformation underpinned by the Digital Agriculture Mission with a government outlay of 2817 crore. The mission aims at building robust public digital infrastructure and enabling farmers to avail ICT based tools for the optimization of agriculture productivity improvement and enhancement of socioeconomic outcomes.

Definition

Digital agriculture involves Information and Communication Technologies ICT and data ecosystems in farming for profitability sustainability and food security.

• Technologies Involved
  • Remote sensing GIS AI IoT robotics drones and blockchain.
  • Data analytics and modeling for precision farming and forecasting.

Why Does Indian Agriculture Need Digitisation?

• Increasing Productivity
  • Precision farming maximizes the usage of resources like fertilizers, water and pesticides.
  • IoT and satellite based systems track crop and weather patterns thereby improving decision making.
• Cost Saving
  • ICT tools reduce dependency on traditional methods and save on input costs.
  • Soil sensors and digital advisories help prevent overuse of agrochemicals.
  • Remote sensing helps monitor soil health and water availability.
  • Water conservation practices that are efficient can be supported in drought prone areas.
• Socio Economic Upliftment
  • Digital platforms such as eNAM links farmers directly to buyers.
  • Knowledge sharing tools enable rural communities to adopt best practices and enhance incomes and yields.
• Financial Inclusion
  • Credit insurance and subsidies are accessed more efficiently through digital systems.
  • The PM KISAN scheme has already transferred substantial amounts through Direct Benefit Transfer DBT.
• Increased Traceability and Quality Standards
  • Blockchain technology helps ensure transparency in the supply chain reducing post harvest losses and ensuring food safety.
• Increased Data Collection
  • Drones and satellites help collect data in realtime which helps improve decisionmaking for farm management.

What is the Digital Agriculture Mission?

Launched in September 2024 to establish Digital Public Infrastructure DPI for agriculture.

Key Features

• Farmer IDs
  • Digital identities for 11 crore farmers by 2026- 27 with data collected via mobile surveys.
• Krishi Decision Support System
  • Unifies data on crops soil and weather for efficient agricultural planning.
• Crop Surveys
  • DGCES of yield estimates for 2024-25 Krishi Sakhis Trained women certified as Paraextension Workers for rural agriculture.

Other Government Initiatives for Digital Agriculture

• National eGovernance Plan in Agriculture (NeGPA)
  • Promoting the use of ICTs among rural farmers.
• Unified Farmer Service Platform (UFSP)
  • Ensures interoperability between public and private agritech systems.
• Farmers Database
  • Tracks scheme benefits and supports precision farming.
• BharatNet
  • Connects rural India with broadband internet for access to digital resources.
• NAMO Drone Didi Scheme
  • Trains women in drone technology for agricultural applications.
• Mobile Applications
  • Tools like Kisan Suvidha App and Agri Market App provide market rates weather forecasts and technical advice.

Challenges in Digitising Agriculture

• High Initial Costs
  • Advanced tools like drones and sensors are expensive making adoption difficult for smallscale farmers.
• Small Land Holdings
  • Limited land sizes hinder the scalability of digital solutions in rural regions.
• Digital Literacy
  • Rural illiteracy and lack of training hinder the effective use of ICT tools.
• Infrastructure Gaps
  • Internet connectivity is bad and power supply is inconsistent which hinders digital adoption.
• Limited Financial Access
  • Small farmers face a challenge in accessing credit to invest in digitization.
• Data Security Concerns
  • Privacy and security of farmer data are necessary to establish trust in digital systems.
• Challenges in Integrating
  • Data Diversity in Indian agriculture makes it difficult to integrate crop climate and soil data.

The Road Ahead for Digitalising Indian Agriculture End

Building Infrastructure Broadband access and mobile connectivity must be expanded in rural areas
Satellite imaging and land mapping investments.

• PublicPrivate Partnerships
  • It should engage with technology startups FPOs and private firms It needs to encourage group buys of digital technologies to make them affordable to smallscale farmers.
• Facilitating Increased Access to Finance
  • It introduces low interest loans and microfinancing initiatives specifically designed for digital agriculture investments.
• Capacity Building
  • Government led training programs will be conducted to promote digital literacy among the people.
  • Extension officers will be given training to ensure that farmers begin using ICT.
• Data Protection
  • Development of strong policies for data protection.
  • Transparent usage of data with the approval of the farmers.

Facts To Remember

1. Marco Rubio calls for talks on migration as he meets Jaishankar

The U.S. wants to address the issue of illegal migration with India, U.S. Secretary of State Marco Rubio told External Affairs Minister S. Jaishankar during their meeting in Washington. The bilateral meeting was Mr. Rubio’s first with any foreign dignitary after taking charge of the U.S. State Department 

2. Thank You, Gandhi by Krishna Kumar and Sites of Learning and Practical Knowledge: Against Normativity by Vivek Dhareshwar

Two books published in 2024, Thank You, Gandhi by Krishna Kumar and Sites of Learning and Practical Knowledge: Against Normativity by Vivek Dhareshwar, delve into Gandhi’s legacy to understand our current socio-political moment.

3. China’s Navy gets new-generation frigate to counter U.S. and others

China’s Navy commissioned a new-generation frigate to counter the U.S. and other regional powers, saying the ship will “play a vital role in enhancing the overall combat effectiveness” of its forces. The first Type 054B frigate, christened the Luohe, was commissioned on Wednesday in Qingdao, a port city in northern China. 

4. PSPB men and RSPB women triumph

Petroleum Sports Promotion Board (PSPB) and Railway Sports Promotion Board (RSPB) won the team championships of the 86th senior National table tennis.

5. UN chief Guterres calls on Iran to renounce nuclear weapons

Iran must make a first step towards improving relations with countries in the region and the United States by making it clear it does not aim to develop nuclear weapons, United Nations (UN) secretary-general Antonio Guterres.

6. SBI Report on Private Company’s Investment

Indian companies announced investments of over ₹ 32 trillion in the first nine months of the current financial year, a 39 per cent increase compared to ₹ 23 trillion in the same period of the previous financial year, with private sector contributions rising to 70 per cent, according to a State Bank of India (SBI) report.

7. Innovator and Investor Summit in Dubai

In Dubai, the Indian People Forum’s Business and Professional Council hosted the Innovator and Investor Summit, spotlighting three startups whose innovations celebrate India’s emerging role as a global hub of innovation and entrepreneurship.

8. Union Minister Giriraj Singh appeals to NIFT students to expand textiles sector to $350 Billion

Union Minister for Textiles Giriraj Singh has appealed to students of NIFT to contribute their optimum to expand the textiles sector to 350 Billion dollar size.

9. EPFO Adds 14.63 Lakh Members in November 2024, Marks 9% Growth Over October

The Employees’ Provident Fund Organisation (EPFO) added 14 lakh 63 thousand members during November last year.

10. Union Minister Piyush Goyal sets target of 10,000 GI tags by 2030

Union Minister of Commerce and Industry Piyush Goyal has set a target of reaching 10,000 Geographical Indication (GI) Tags by 2030.