Current Affairs 24 January 2025

Daily Current Affairs Quiz
24 January, 2025

International Affairs

1. US Withdrawal from WHO

Context:

United States President Donald Trump signed an executive order to withdraw from the World Health Organisation (WHO) on his very first day in office.

The Decision to Withdraw

• Upon allegations of bias and mishandling particularly with the COVID19 pandemic
  • President Donald Trump decided to have the US withdraw from the World Health Organization (WHO).
  • This move while not entirely unexpected because of the criticism by Trump against WHO before is worrying to the health community in many ways.

US Withdrawal Implications

• Financial Impact
  • The US is one of the founding members and is the largest financier to WHO accounting for approximately 18 of its total funding. These funds are a significant source that if withdrawn would severely undermine critical global health programs including those focused on HIV AIDS, tuberculosis and the eradication of other infectious diseases.
• Global Health Collaboration
  • Global health operates in a system where interconnectivity dictates that national borders cannot protect against such global threats like pandemics. The COVID 19 crisis illustrated that no nation is safe till every nation is secure and thereby international cooperation is the imperative.
  • The WHOs role in facilitating global cooperation, sharing critical data and ensuring equitable access to vaccines and treatments is indispensable in combating health crises.

The Case for US Reengagement with WHO

• A Unified Approach to Health
  • The political motivation for withdrawal ignores the larger context global health is not a zero sum game and turning inward does not protect a country from global health risks.
  • Open cooperation and data sharing are indispensable in managing pandemics which cannot be confined within borders. The lessons learned from COVID19 emphasize that health crises are global in nature and require a collective response.

Hope for Reconsideration

Even after the US decision WHO has already attempted to contact hoping that the US will have second thoughts and again join the rest of the health world. Some hope within the health circles are that as scientists have created medicines that work wonders diplomacy can lead to a point where the US will once more engage with WHO.

Conclusion

• Global Health Cooperation Restored
  • The United States should understand that the health security of this country is intertwined with the health of the world. Withdrawing from the WHO jeopardizes global health initiatives which undermines efforts made by the country to solve global health challenges.
• In a world, increasingly defined by interconnectedness the US should focus on global health collaboration, reengage with the WHO and work toward a unified approach to combating pandemics and improving health outcomes around the world.

National Affairs

1. Inter-State Water Disputes

Context:

The Supreme Court has found that the Union government is yet to grant ‘in-principle approval’ to the Cauvery-South Vellar Link project four years after Tamil Nadu sought clearance from the Jal Shakti Ministry. 

The Cauvery-South Vellar Link Project Legal and Political Controversies

• Introduction
  • The Cauvery South Vellar Link project became a hotly debated issue in India marking it with judicial litigation and political flares between Tamil Nadu and Karnataka. Initiated by Tamil Nadu in January 2021 the project is yet to gain inprinciple approval from the Union government and there has been disagreement among states on water rights and the use of resources.

Background of the Project

• Objective
  • The project proposes diversion of excess water from Mettur dam in Tamil Nadu, for the recharging of dry tanks in the Sarabanga basin of Salem district of Tamil Nadu.
• Cost Estimation
  • The cost estimate of the project is 565 crore
• Karnatakas Plea
  • Karnataka says that such diversion would jeopardize its water resources and the communitys rights along the Cauvery river.
• Historical Background
  • The Cauvery river has been a longstanding source of interstate disputes in India with contentious water sharing agreements and court rulings.
• Tensions Today
  • The project is part of the larger concerns associated with water rights resource management and the way regional government goes about its operations.
• Environmental Perspectives
  • Local ecosystem and farm management may suffer when water supply is diverted for such purposes.
• Sustainability
  • There should be sustainable water management practices balancing development with environmental preservation.

Legal Argument of Karnataka

• Supreme Court Filing
  • Karnataka has filed a case in the Supreme Court against Tamil Nadu seeking to prevent the latter from continuing with the project. The state bases its arguments on the 2007 Cauvery Water Disputes Tribunal ruling and the 2018 Supreme Court judgment which it argues Tamil Nadu has violated.
• Cooperative Federalism
  • Karnataka takes the argument that Tamil Nadu by starting the project is flouting constitutional conventions and federalism principles.

Inter-State Water Disputes

The water happens to be in the State List of the Indian Constitution. The State List is List II of the Seventh Schedule of the Constitution.

• Explanation
  • The Seventh Schedule of the Constitution of India divides power between the Union and State governments.
  • The State List entails subjects which the State legislatures alone are enabled to provide in their regulations.
  • The Union List consists of subjects that can be legislated only by the Union Parliament.
  • The Concurrent List comprises subjects that can be legislated upon by both the Union Parliament and the State Legislatures.

Constitutional Provisions

Inter-state water disputes in India are addressed in the Indian Constitution’s Article 262 and the Inter-State Water Disputes Act of 1956. 

• Article 262
  • This article of the Constitution gives the Parliament the power to resolve disputes over the use, distribution, or control of inter-state rivers. 
• State and Union Lists
  • Entry 17 of State List
    • It comprises water related matters such as water supply, irrigation canal systems, drainage, embankments, water storage and water power.
• Entry 56 of Union List
  • Gives the Union Government the power to regulate and develop inter-state rivers and river valleys in the public interest declared by Parliament.
• Article 262 of the Constitution
  • Adjudication of Disputes
    • Parliament may make laws for the adjudication of any dispute or question touching such use distribution or control.
  • Exclusion of Jurisdiction of Court
    • Parliament has a power under it to wholly exclude the jurisdiction of the Supreme Court or of other Courts in any suit or proceedings.

Inter-State River Water Disputes Act 1956

It is one whose purpose serves the water dispute within the States.

• Provision
  • If a State requests intervention over a water dispute and the Central Government feels the issue cannot be resolved through negotiations a Water Disputes Tribunal is formed 2002.
• Amendments Recommendations of the Sarkaria Commission
  • The Sarkaria Commission recommended the establishment of a permanent Inter-State Council to resolve disputes between states. 

Inter-State River Water Disputes Amendment Bill 2017

• Objectives
  • Streamlining adjudication of interstate river water disputes by amending the ISRWD Act 1956.

Major Provisions

• Standalone Tribunal
  • Establishes a permanent tribunal with dedicated infrastructure to avoid setting up a new tribunal for each dispute.
• Dispute Resolution Committee (DRC)
  • A committee formed by the Central Government to amicably resolve any dispute within one year and six months. If DRC fails to resolve the dispute then it is directed to the tribunal Tribunal Bench System.
  • The chairperson of the tribunal assigns a bench to the referred disputes Decisions are Binding.

Decisions by the benches of the Tribunal are final and binding on the parties

• Publication Requirement
  • Publication of decisions of Tribunals not required through official gazettes.
• Data Management
  • Data collection transparently at National Level for Each River Basin by Establishing.
  • One agency responsible for a data bank and an information system.

Issues with Inter-State Water Dispute Tribunals

• Delayed Proceedings and Injustice
  • Most disputes extend to a long period, denying justice. Recent examples in India include the Godavari Water Dispute and the Cauvery Water Disputes Tribunal.
• Opacity in Institutional Framework
  • Tribunal procedures and compliance mechanisms are obscure, and states can challenge them in the Supreme Court.
• Undersized Composition of Tribunals
  • The tribunals are essentially made up of members from the judiciary, which makes for an unsatisfactory and incomplete resolution of disputes.
• Lack of Reliable Water Data
  • The baseline is not established due to unreliable water data. Tribunals are adversarial and tend to prolong litigations and politicize the disputes. States politicize awards for political benefits with prolonged delays in resolution.
• Defiance and Non-Compliance by States
  • Defiance of tribunal awards is increasing and weakening the basic mechanisms of resolution.
• Excessive Discretion in Decision-Making
  • Procedural complexities and multiple stakeholders‘ involvement lead to inefficiency and delays.
• Complex Federal Structure and Colonial Legacy
  • India’s federal system creates competing interests over shared water resources, complicating modern dispute resolution efforts.
• Implications
  • Delayed justice, politics, and system inefficiencies hinder sustainable and cooperative water-sharing agreements.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Mains

Q. Constitutional mechanisms to resolve the inter-state water disputes have failed to address and solve the problems. Is the failure due to structural or process inadequacy or both? Discuss. (2013)

2. Tuberculosis

India TB Report 2024

Recently, the Ministry of Health and Family Welfare released the India TB Report 2024, which highlights that the mortality rate due to Tuberculosis (TB) had declined from 28 per lakh population in 2015 to 23 per lakh population in 2022.

Key Highlights:

• Most Cases Registered
  • Government health centres are reporting most TB cases, private sector notification has been rising.
  • The private sector reported 8.4 lakh from 25.5 lakh in 2023 as against 1.9 lakh in 2015.
• Mortality Rate
  • Estimated TB incidence slightly increased to 27.8 lakh in 2023, but infection-related mortality remained at 3.2 lakh.
• Target
  • India met the target for the year 2023 to have treatment initiated for 95% of the identified cases.

Tuberculosis

• Tuberculosis is a bacterial infection caused by Mycobacterium tuberculosis, affecting any organ of the body.
• Airborne Infection
  • It is an airborne infection that spreads through close contact with the infected, especially in densely populated spaces with poor ventilation.
• Symptoms
  • Symptoms include cough with sputum and blood at times, chest pains, weakness, weight loss, fever, and night sweats.
• Infection Prevalence
  • TB is the world’s top infectious killer, leading to 1.5 million deaths annually.
  • The majority of those infected with TB reside in low- and middle-income countries, but the disease is everywhere.
• Treatment
  • The standard 6-month treatment consists of 4 antimicrobial drugs, resistance to at least 1 of the medicines has been reported from all surveyed countries.
  • Multidrug-resistant Tuberculosis (MDR-TB) is a form of TB caused by bacteria that are not responsive to isoniazid and rifampicin, the two most powerful, first-line anti-TB drugs.
    • Multidrug resistance (MDR) is when a microorganism is resistant to multiple antimicrobial drugs.
• Drugs
  • Any of the mentioned drugs include isoniazid (INH), rifampicin (RIF), and delamanid.

Programs to Control TB

• The WHO established the “Find. Treat. All. #EndTB” program and the Global Plan to End TB, 2023-2030.
• The efforts of India are Pradhan Mantri TB Mukt Bharat Abhiyan, National Strategic Plan for Tuberculosis Elimination (2017-2025), TB Harega Desh Jeetega Campaign, Nikshay Poshan Yojna, and RePORT India.

3. Poverty in India

Why in News?

The World Bank has recently published a report titled Poverty Prosperity and Planet Pathways out of the Polycrisis. The report is the first to give the post pandemic report on the worlds progress toward poverty reduction prosperity and environment related goals.

Highlights of Report

• Global Poverty Reduction Has Stalled
  • Over the past five years the degree of global poverty reduction has stalled due to the so called polycrisis that is the slowdown of the economies fragility climate risks and uncertainty.
• Polycrisis Impact
  • The interlinked crisis situation has made national development policies and international cooperation complicated.
  • A polycrisis, coined by French philosopher Edgar Morin as the term for the situation in which multiple crises overlap and intensify each other, making the situation complicated and difficult to manage. This term was coined in his 1993 book, Terre-Patrie.
  • Causes of a polycrisis include economic recessions, political instability, natural disasters, and globalization.
• Global Poverty Estimates
  • The projection of the extreme poverty population will be 7.3% for 2030 which is double the target set by the World Bank of 3%.
• Global Prosperity Gap
  • Inclusive growth in income remains stagnant worsening the prosperity gap Income needs to be multiplied drastically to meet a global prosperity benchmark of 25 per person per day.
• Progress in India
  • Indians living in extreme poverty has fallen dramatically from 431 million back in 1990 to 129 million in 2024 based on a definition of extreme poverty as living on less than Rs.215 per day.

Causes of Poverty in India

• Historical Causes
  • Colonial exploitation destroyed the local industries and caused deindustrialization and the drain of wealth which deepened poverty.
  • These factors are low agricultural productivity due to broken up landholdings less capital and the traditional practices in use rapid population increase leading to stress on resources further deepening the problem of poverty. Economic inequalities because of inequality of income and concentration of wealth by the top minority, social exclusion mainly because of gender and caste leading to excluded groups not receiving their due resources and opportunities.
• Geographical Inequality
  • Repeated floods in Assam and Bihar displace millions and drive them into further poverty.

Poverty Trends in India Current Situation According to NITI Aayog

• Poverty Headcount Ratio
  • The figure has decreased to 1128 for the period 2022-23 from 2917 for 2013-14.
• Number of People Taking Away Multidimensional Poverty
  • Within the last nine years 2482 crore Indians escaped multidimensional poverty.
• Quickest Reduction in Poorer States
  • The quickest reduction in poverty has been recorded in states like Uttar Pradesh, Bihar, Madhya Pradesh, Odisha and Rajasthan.
• On Track to SDG Target 12
  • India is on track to meet the SDG goal of reducing multidimensional poverty by half much before 2030.

History of Poverty Estimation in India

• Pre Independence
  • Dadabhai Naoroji and the Bombay Plan set the stage for estimating poverty in India.
• Post Independence
  • Committees like the Planning Commission and Alagh Committee have been crucial in poverty measurement and poverty line definitions.
• Post2000s
  • Tendulkar Committee 2009: Recommended that the country move away from calorie based poverty lines adopting the Mixed Reference Period (MRP) for expenditure estimates.
  • Rangarajan Committee 2014: It reverted to separate rural and urban lines of poverty but the government did not turn its recommendations into action.

Key Terminologies Relating to Poverty

• Absolute Poverty
  • Extreme lack of basic human needs like food and clean water. This is defined by a minimum cost in order to meet basic needs.
• Relative Poverty
  • This is defined by the economic status of others in society where people are considered poor if they fall below societal living standards.
• Poverty Rate
  • The percentage of the population living below the poverty line.
• Intensity of Poverty
  • This measures how severe poverty is for those living below the poverty line.
• Multidimensional Poverty Index (MPI)
  • An overall index that takes into account various aspects of poverty other than monetary aspects which includes education health and standard of living.

Policies to Reduce Poverty in India

• Economic Security
  • Schemes such as Ayushman Bharat Yojana and PM Bharatiya Janaushadhi Pariyojana.
• Social Security
  • Which also encompasses the following like Pradhan Mantri Garib Kalyan Anna Yojana and PM Matru Vandana Yojana.
• Financial Inclusion
  • PM Jan Dhan Yojana and Atal Pension Yojana.
• Employment and Skill Development
  • PM Kaushal Vikas Yojana, Mahatma Gandhi National Rural Employment Guarantee Scheme etc.
• Entrepreneurship
  • PM MUDRA Yojana, PM SVANidhi Deendayal Antyodaya Yojana, Supporting small enterprise and entrepreneurship development.

NITI Aayog’s Recommendations to Reduce Poverty

• Employment Intensive Growth
  • Creating better jobs and generating additional revenues for social welfare programs. A second green revolution in agriculture is recommended particularly in eastern India.
• Effective Anti Poverty Programs
  • Improve targeting of programs using technologies like the JAM trinity, Jan Dhan, Aadhaar Mobile to reduce inclusion and exclusion errors.
• Capability Approach of Amartya Sen
  • Investment in peoples capabilities through education and skills development and hence citizen empowerment and poverty reduction. For example the slum dwellers will be empowered for entrepreneurship and consequently urban poverty reduction.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims

Q.In a given year in India, official poverty lines are  higher in some States than in others because (2019)

(a)  poverty rates vary from State to State

(b) price levels vary from State to State

(c) Gross State Product varies from State to State

(d) quality of public distribution varies from State to State

Ans (b)

Q. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?(2012)

1. Deprivation of education, health, assets and  services at household level
2. Purchasing power parity at national level
3. Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Ans (a)

Mains

Q. Though there have been several different estimates of poverty in India, all indicate reduction in poverty levels over time. Do you agree? Critically examine with reference to urban and rural poverty indicators (2015)

4. Iron Age and Stone Age

Context:‘

In an announcement that challenges long-held assumptions about the origins of the Iron Age, a new study has found evidence that the use of iron in the area that is now Tamil Nadu dates back to the first quarter of the 4th millennium BCE. This revelation, based on rigorous radiometric dating from multiple international laboratories, positions the region as a pioneering hub of early metallurgy, surpassing global timelines by nearly two millennia.

About the Iron Age

The Iron Age was the third stage after the Stone Age and the Bronze Age that was established between the years 1200 BC and 600 BC depending on location. It was found in Africa, Europe and Asia during prehistoric times. The Americas were not yet discovered so it did not take place within those areas.

• Discovery and Usage of Iron
  • People discovered iron and started to use it highly replacing bronze as the common material for making tools and weapons. The ironworking process started in Turkey and then ironworking spread across Europe and the rest of the world.

Impact on Daily Life

• Farm Tools
  • Iron tools such as the ard (an iron plow) made farming easier than using wooden or bronze plows.
• Weapons
  • Iron swords and weapons spread throughout the armies which enabled armies to gain supremacy in battles.
  • Also used for Hunting.

Stone Ages

• Palaeolithic (Old Stone) Age
  • Cultural Features: The most prominent characteristic was hunting and gathering.
  • Tools: Choppers, hand axes, scrapers, spears, bows, and arrows made from hard rock quartzite. The stone were sharp.
  • Rock Paintings: These are found at Bhimbetka, Madhya Pradesh, where the main theme is hunting.
• Phases:
  • Lower Palaeolithic (50,000–100,000 BC)
  • Middle Palaeolithic (100,000–40,000 BC)
  • Upper Palaeolithic (40,000–10,000 BC)
• Mesolithic (Middle Stone) Age
  • Transitional Period: This transition marks the period between the Pleistocene and the Holocene period.
  • Cultural Development: Hunting, fishing, and food gathering characterized Early Mesolithic.
  • Domestication: Emergence of domesticated animals.
  • Tools: Microliths, smaller and more geometrically advanced than Palaeolithic tools.
• Neolithic (New Stone) Age
  • Key Features: Food production started, sedentism, use of pottery, and craft inventions.
  • Tools: Heavy ground tools like pestles, grinders, pounders, and also axes and sickles.
• Megalithic Culture
  • Megaliths
    • Large stone structures mainly used for burial or commemorative purposes.
  • Indian Subcontinent
    • Mainly from peninsular India, from Maharashtra, Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, and Telangana.
  • Time period: Most of the megaliths were built during the Iron Age period, that is 1500-500 BCE; some of them belong to the earlier periods, dated back to 2000 BCE.

5. Rhodamine B

About Rhodamine B

Rhodamine B is a chemical dye mainly employed in the textile paper and leather industries because of its intense pink color and luminescence.
Its application in edible products is very dangerous. It has been found to cause DNA breakage mutations and even lead to cancer due to the results obtained in several researches.

Health Effects of Rhodamine B

• Cancerous Growths
  • Animal studies show that prolonged exposure to Rhodamine B can result in tumor development in organs like the liver and bladder.
• Carcinogenic Properties
  • The dye is classified as a carcinogen by health authorities with increasing evidence linking it to health risks particularly for children who are exposed to high levels in processed foods.

Global Regulatory Actions

• United States
  • The FDA has prohibited Rhodamine B for use in food products since time immemorial because it is unsafe for human consumption.
  • The 2025 FDA ban affirms the same this time pointing to children’s vulnerability in terms of dye exposure in items such as candies and baked goods.

• European Union
  • The EU classifies Rhodamine B as a substance of very high concern also limiting its use in cosmetics and other consumer goods.

Rhodamine B in India Recent Concerns

• Illicit Use in Food
  • Rhodamine B has been used illicitly to enhance the visible appeal of certain food products thus posing major risks to health.

New State Measures

• Tamil Nadu in Feb 2024
  • Banned the sale of cotton candy after detecting Rhodamine B in samples. The state government emphasized that such products violate the Food Safety and Standards Act of 2006.
• Karnataka in Mar 2024
  • Prohibited the use of Rhodamine B in street foods like Gobi Manchurian and cotton candy with penalties including imprisonment and fines.
• Puducherry and Himachal Pradesh
  • Followed through with their implementation of bans for cotton candy etc. on selling food items so as not to harm the general health of the population.

The use of Synthetic Dyes

• Health Hazards
  • Synthetic dyes such as Rhodamine B can stimulate DNA damage causing oxidative stress and enhancing tumor growth in animal models.
  • Longterm exposure to unregulated products continues to be a cause for concern for vulnerable groups such as, children and the elderly.
• Dermatological Effects
  • Synthetic dyes can cause allergic reactions such as itching redness and skin pigmentation changes Chronic exposure can lead to chronic skin reactions.

India’s Food Safety Ecosystem

• Lack of Research
  • Priyadarshini Chidambaram a Community Health Specialist demands proactive research on the safety of food dyes in India and independent studies on the impact of synthetic additives on public health.
  • FSSAI should be more proactive She feels that the Food Safety and Standards Authority of India.
  • FSSAI should also be more proactive in creating public awareness about consuming safe food and checking for hazardous additives.

6. Enemy Property Act of 1968

Context:

The ongoing case regarding the Pataudi family properties linked to Saif Ali Khan, where the government claims ownership due to a family member migrating to Pakistan after partition. 

Enemy Property Act of 1968

The Enemy Property Act of 1968 is an Indian law that regulates the ownership of properties owned by people or countries considered enemies of India. The act was passed after the 1965 Indo-Pakistani war. 

Key Features:

• What does the Enemy Property Act do?
  • The act empowers the government to seize properties belonging to people or nations that are declared enemies of India.
  • The act ensures that these properties are not misused against the national interests of India.
  • The act declares what is considered enemy property and empowers the government to administer and dispose of it.
• Who is liable for enemy property?
  • The Custodian of Enemy Property for India is a government department responsible for enemy property.
• What happens to the heirs of enemy property owners?
  • The act prevents the heirs or relatives of enemy state nationals from inheriting properties in India.

Amendments

• The Enemy Property (Amendment and Validation) Bill, 2016 was enacted in the year 2017 which superseded the Act of 1968.
• The amendment has now expanded the meaning of “enemy subject” and “enemy firm” which now includes the legal heirs and successors of enemies.

Some Important Legal Precedents:

• Union of India v. Raja Mohammad Amir Mohammad Khan, 2005
  • Properties of a citizen of India could not be said to be enemy property.
• Lucknow Nagar Nigam & Others v. Kohli Brothers Colour Lab Pvt. Ltd & Others, 2024
  • The Supreme Court ruled that enemy property which stood vested in the Custodian was only transitory.
• Public Premises (Eviction of Unauthorised Occupants) Act, 1971
  • It removes unauthorised occupation of public property.
  • There is a very effective mechanism available for the eviction of unauthorized people from public property.

7. Gig Workers

Context:

The Centre is readying the launch of social security contributions by gig workers. The platforms will be asked to deduct a certain percentage of the payment they make to these workers and deposit it with the Employees’ Pension Scheme. Govt may also top it up with a 3-4% contribution of the deposit made by the platform.

Who are Gig Workers?

8. National Company Law Appellate Tribunal (NCLAT)

Context:

The National Company Law Appellate Tribunal (NCLAT) said that WhatsApp users should have the option to opt out of its data-sharing policy of 2021, which allowed the messaging platform to share data with parent company Meta (formerly Facebook), or its products.

The Draft Digital Personal Data Protection Rules 2025

Banking/Finance

1. Pradhan Mantri Mudra Yojana

Context:

The Union Ministry of Micro, Small and Medium Enterprises (MSME) has recommended increasing loan limits for Shishu and Kishore categories under the Pradhan Mantri Mudra Yojana in the FY26 Budget.

What is Pradhan Mantri Mudra Yojana?

2. Variable Rate Repo (VRR)

Context:

The Reserve Bank of India (RBI) will conduct overnight variable rate repo (VRR) auction worth ₹ 2 trillion. Additionally, it will conduct 14-day VRR auction on the same day to infuse ₹ 1.75 trillion worth liquidity into the banking system.

The Variable Rate Repo (VRR)

The Variable Rate Repo (VRR) is that tool with the Reserve Bank of India (RBI) can fine-tune liquidity in the banking system. The VRR is a lending rate which might change as and when required to the economy.

• How does the VRR work?
  • The RBI uses the VRR to reduce the amount of cash in the system.
  • The RBI undertakes VRR operations to keep the system sufficiently liquid.
  • The VRR impacts the rates of interest on loans that the banks charge.
• Why is the VRR significant?
  • The repo rate is a key determinant of inflation and growth.
  • Changes in the repo rate are transmitted through the money market to the entire financial system.
• What is the Monetary Policy Committee (MPC)?
  • A six-member committee heads the MPC under the RBI Governor.
  • The MPC determines the repo rate in terms of the existing and changing macroeconomic scenario.

3. RBI Intervention on Depreciating Rupee

Context:

The Reserve Bank of India (RBI) will likely make another windfall payout to the government on account of its intervention in currency markets to stem the decline in the rupee, according to economists.

Windfall Payout

A windfall payout is an unexpected financial gain, such as a lottery win, inheritance, or bonus. Windfall payouts can also refer to unexpected profits for businesses. 

RBI Intervention on Degrading Rupee

The RBI intervenes in the currency market to stabilize the rupee and reduce its depreciation. Interventions of the RBI include selling dollars in the forex market to increase the value of the rupee, as well as taking short positions in the non-deliverable forward (NDF) market.

• Lowering CRR
  • The RBI lowers the cash reserve ratio (CRR) to minimize the impact of selling dollars on liquidity.
• Increasing interest ceilings
  • The RBI increases interest ceilings on FCNR (B) deposits to bring in capital.
• Examples of RBI intervention
  • The RBI used $44.5 billion in the spot and forward currency markets to prop up the rupee in October.
• Effect of RBI intervention
  • RBI interventions can help reduce volatility and stabilize the rupee. However, they can also have ripple effects, such as reducing liquidity in the banking system and making exports less competitive.

RBIs Windfall Transfer A Financial Boost for the Government

• Expected Surplus Transfer
  • 2 trillion Estimated transfer by IDFC First Bank
  • 15 trillion Estimated transfer by QuantEco Research
  • 21 trillion Actual payout for FY24
• Surplus
  • A surplus is an amount that is more than what is needed or used. It can be applied to assets, resources, income, profits, capital, and goods. 

Source of Surplus

• The Reserve Bank of India RBI generates income from
  • Investments in dollar holdings and valuation changes.
  • Fees earned from currency printing.
  • Profits from selling dollars at a higher exchange rate than their acquisition cost.

The surplus is transferred annually to the government after retaining some funds to boost the central banks capital reserves.

Context Currency Market Interventions

• To support the rupee the RBI sold 196 billion in forex between April and November 2024 compared to 113 billion during the same period in 2023
• Total forex sales for FY25 could reach 250 billion.
• The dollar sales were profitable as the greenbacks were acquired at a lower exchange rate earlier.

Economic Impact of the Transfer

• Budgetary Support
  • Helps offset sluggish corporate tax revenue.
  • Partly covers shortfalls in divestment proceeds.
• Macroeconomic Context
  • Comes at a critical time as the government addresses.
  • Weak consumption demand.
  • Low private sector investments.
  • Moderating tax collections.

Conclusion

The anticipated RBI payout will play a vital role in supporting government finances during a period of fiscal strain. While this windfall boosts resources long term reliance on central bank transfers underscores the need for sustainable revenue generation through enhanced economic activity and structural reforms.

4. Regulated Trading Before IPO Listing

Context:

The Securities and Exchange Board of India (Sebi) is considering asking exchanges to enable a “when listed” section on their platforms where initial public offerings (IPOs) may be traded in the period of three working days between allotment and listing. 

Sebi’s Proposal

• When Listed Segment
  • There is a proposed regulated segment on the exchanges for IPO allotments that can be traded between allotment and formal listing three days window.
• Objective
  • The move aims at streamlining grey market trading promoting transparency and allowing an early cashout opportunity for IPO allottees.

• Benefits of the Proposal
  • Transparency in Price Discovery.
  • Gray market will no longer appear mysterious.
  • Investors as well as analysts will be able to keep a track of the bid offer prices and volume data as exists in the case of secondary market trading.
• Grey Market
  • Grey market goods are goods sold outside the authorized distribution channels by entities which may have no relationship with the producer of the goods. This form of parallel import frequently occurs when the price of an item is significantly higher in one country than another.
• Fair Valuation
  • Probabilities of listing shares at unreasonably high premium due to untracked greymarket activity are reduced.
  • The price would rise gradually and clearly in the when listed part
• Transparency on Taxation
  • This will give an even better idea of the capital gains tax of IPO allottees who would be selling their shares right after the allotment process.
• Effective Monitoring of Market
  • This provides an official method of tracking speculative trading to the investor and regulators.

Issues and Implications

• Speculation Might Linger
  • While regulated trading might reduce the grey market speculation might continue to thrive through the formal channel.
• SME Segment Vulnerabilities
  • The lightly regulated SME IPO segment needs further vigilance to ensure there is not too much speculation and resultant market distortions.
• Allotment to Listing Timeframe
  • Sebi must consider reducing the window between allotment and listing to as low as one day.
  • With advancements in technology it is possible to have faster settlement timelines further reducing opportunities for grey market speculation.

Background on IPO Activity

• IPO Activity Increasing
  • 91 IPOs in 2024 consisting of the mainboard and SME raising over 16 trillion equivalent to 185 billion.
  • Many IPOs saw more than 100 times oversubscription and lotterylike allotment scenarios.
• Grey Market Speculation
  • Grey market activity is sourced from bumper listing premiums witnessed from respective allotments prior to being listed on the mainboard.
  • Proposed when listed segment by Sebi is a very pragmatic approach to addressing the challenges of the grey market providing for a regulated and transparent trading space.

Unlisted Companies Vs Listed Companies

Agriculture

1. Drone Technology in Agriculture

Context:

Salam Kisan (PRYM Solutions) has signed a memorandum of understanding (MoU) with the Maharashtra government to democratise agricultural drone technology. The drone firm has partnered with Microsoft as technology partner.

Drone Technology in Agriculture

The Indian drone market for agriculture is in its early stages but shows significant potential for growth.
In Punjab 93 out of 100 drones made available to farmers through the Indian Farmers Fertiliser Cooperative (IFFCO) under the Centres NAMO Drone Didi scheme are already operational
These drones priced at Rs 16 lakh each are equipped with 12 litre water tanks.

Advantages of Drone Technology in Agriculture

• Health Protection
  • Drones protect farmers from harmful pesticides which could cause serious health issues such as cancer and kidney problems.
• Efficiency
  • Spraying is completed by drones in a time of only 57 minutes per acre reducing the time consumed compared to spraying by hand which takes a couple of hours.
  • They apply pesticides and fertilizers uniformly which results in better crop yields.
• Data Utilization
  • Drones collect data that can identify areas of the field that require attention hence resulting in better crop yields and more profits.
• Nano Fertiliser Application
  • Drones are efficient in applying nano fertilizers which apply small quantities uniformly that are difficult to spread manually.
• Pest Control
  • Spraying drones have timely and precise application during pink bollworm, locusts and whiteflies pest infestations which have improved pest control.
• Environmental Benefits
  • Nutrient absorption from nano fertilizers increases by up to 90% reducing runoff and pollution.
  • Application based on leaves and not on soil is less polluting than traditional spraying methods.
• Water Conservation
  • Drones can conserve water by as much as 90% compared to conventional pesticide application methods.
• Cost Savings
  • Reduces manual labor and pesticides use overall costs are significantly brought down for farmers.
• Other applications
  • Drones are also used for the sowing of seed balls with regards to reforestation hence saving the environment.

Challenges of Adopting Drone Technology

• Job Loss
  • The use of drones could reduce the demand for manual labor, potentially leading to job losses for laborers who traditionally perform tasks like pesticide spraying.
• Lack of Knowledge and Training
  • Many farmers may not have the necessary skills or training to operate drones effectively hindering adoption.
• Cost
  • The initial cost of drones is very high, which is a significant barrier for most farmers especially smallscale ones.
• Regulatory Barriers
  • There could be regulatory issues with drone operations that might hinder the mass adoption of drone technology in agriculture.

Initiatives to Promote Drone Use in Agriculture

• Digital India Campaign
  • This aims at boosting the digital infrastructure besides equipping the farmer with such advance technologies using drones.
• ICAR
  • Now the research is being executed with the objectives to promote those technologies of agriculture in a Precision Agricultural way like drone toward enhancement of production level of crops.
• Planned Production linked incentive (PLI Scheme)
  • This plan provides Rs 120 crore around US 1439 million to promote the idea of homegrown drone production and lesser imports.
• Submission on Agricultural Mechanization (SMAM)
  • Under this scheme the government supports farmers financially if they buy a drone So this can be said as a step forward to make technology more accessible.
  • This program aims to empower women Self Help Groups (SHGs) by offering them access to modern agricultural technology such as drones
• Training and Support
  • Efforts are being made to train farmers and provide support to overcome barriers to drone adoption.

Conclusion and Way Forward

• Revolutionizing Agriculture
  • The possible transformation of agriculture through the advent of drone technology brings into the portfolio increases in the efficiency crop yields and cost effectiveness.
• Effects on Agriculture
  • Drones would significantly revolutionize pesticide and fertilizer application in fields which are traditionally carried out manually making it efficient uniform and perfect.
• Threeway Collaboration
  • It is important that farmers and policymakers collaborate to address issues such as cost, training and regulatory concerns so that the benefits of drone technology are maximized while mitigating any concerns

Source: Business Line

Namo Drone Didi Scheme

Fact To Remember

1. Misri to visit Beijing as India, China look to revive dialogue

Foreign Secretary will meet Chinese Vice-Foreign Minister Sun Weidong and discuss resumption of direct flights between the two countries, visas, and the Mansarovar yatra; trade issues and concerns over hydropower project as well as Line of Actual Control (LAC) may also come up

2. President of Indonesia arrives for Republic Day fete, to meet PM tomorrow

Indonesian President Prabowo Subianto arrived here on Thursday to attend the 76th Republic Day event on Sunday as the chief guest.

3. Stung by Puja Khedkar scam, govt. amends Civil Services Exam Rules

Online submission of documents, such as educational, caste and physical disability certificates, has been made mandatory for candidates for the preliminary stage of the Civil Service Examination conducted by the Union Public Service Commission (UPSC), a government notification has said.

4. Anuja nominated for Best Live Action Short Film at 2025 Academy Awards

Anuja, a short film set in New Delhi, has received a nomination for the Live Action Short Film category at the 97th Academy Awards. Directed by Adam J. Graves and Suchitra Mattai, it competes against films like A Lien and The Last Ranger.

5. CHINAR GEOTAGGED IN KASHMIR

Workers install QR code-based Geographical Information System plates on Chinar trees under the ‘Digital Tree Aadhaar’ programme in Srinagar. The programme is aimed at conservation of the trees, a cultural and ecological symbol of Kashmir, which are facing threats due to rapid urbanisation

6. MDL-TKMS bid for Navy’s P-75I submarine tender clears technical evaluation

The multi-billion dollar deal for six advanced conventional submarines under project-75I has crossed a major milestone with the bid by Mazagon Dock Shipbuilders Limited (MDL), Mumbai, and Germany’s TKMS (Thyssenkrupp Marine Systems) having cleared the technical evaluation conducted by the Defence Ministry. 

7. Indian Navy finishes survey of Mauritius

The Indian Navy’s INS Sarvekshak completed the final phase of the hydrographic survey of Mauritius covering an extensive area of over 25,000 square nautical miles. The fair sheet of the survey, along with newly prepared nautical charts, were formally handed over to President Dharambeer Gokhool on Thursday.

8. SC dismisses PIL calling for abolition of TDS system

The Supreme Court today dismissed a public interest litigation (PIL) that called for the abolition of the Tax Deducted at Source (TDS) system under the Income Tax Act. 

9. Bangladesh’s economy grappling with skyrocketing interest payments

Bangladesh’s economy is grappling with skyrocketing interest payments which ate up more than half of government revenue expenses during the first four months of the current fiscal year of 2024-25, according to data from the Ministry of Finance of Bangladesh.

10. Micheal Martin confirmed as new Irish PM

In Ireland, Fianna Fail leader Micheal Martin has been confirmed as the new Prime Minister after a vote in the Dail, the lower house of the Irish parliament. 

11. National Girl Child Day 2025: Empowering girls for a bright future

National Girl Child Day is being celebrated across the nation today, with a focus on raising awareness about the rights, education, health, and safety of girls in society.

12. US Senate confirms John Ratcliffe as CIA Director

The United States Senate has voted to confirm former Director of National Intelligence (DNI) John Ratcliffe as the next Central Intelligence Agency (CIA) Director under President Donald Trump