Current Affairs 25 February, 2025

Daily Current Affairs Quiz
25 February, 2025

International Affairs

1. Ukraine and U.S. Negotiations on Mineral Agreement

Context:

This is the context Ukraine and the U.S. are concluding a deal which would allow access of Washington to Ukrainian natural resources in return for continued U.S. support. This agitation has put American officials under pressure to sign the agreement with Kyiv, given that Ukraine has been apprehensive about the absence of security guarantees.

Key Highlights:

• The Deputy Prime Minister Olga Stefanishyna confirmation that negotiations are at the “final stages,” with most significant details already settled in
• President Volodymyr Zelenskyy demands concrete security guarantees for the U.S. grant of access to critical resources of Ukraine.
• President Donald Trump has demanded that Ukraine allows admission to rare minerals in return for wartime assistance under the Biden administration.
• Soon, final agreements. Hopefully Trump and Zelensky will sign here in Washington.
• So, this agreement might imply a long term cooperation of the U.S. and Ukraine but still has problems regarding Ukraine’s security guarantees.

2. Friedrich Merz’s To Become Germany’s 10th Chancellor

Context:

Friedrich Merz, on course to become post-World War II Germany’s 10th chancellor after the country’s election, has vowed to prioritize European unity and the continent’s security as it grapples with the new Trump administration and Russia’s war on Ukraine.

Internal Effects: Change towards Conservative Rule

• End of Scholz’s Centre Left Coalition
  • It will be the policy shift from the centre left back to conservative governance as the CDU takes power.
• Focusing Economic Issues
  • Merz is expected to create business friendly policies, tax cuts, and stricter fiscal discipline, thereby leading the country from high spending under the charge of Scholz’s government.
• Harder Stance on Immigration
  • The CDU may tighten immigration policies to somehow correspond to the growing support for the far right AfD.

European Implications: Status Quo versus New Dynamics

• Strengthened Franco German Coordination
  • As Merz rises to the top office in Germany, he will most definitely build up ties with President Emmanuel Macron from France for keeping the EU in a stable state.
• Restructured EU Economic Policies
  • More rigorous budget rules for EU member states may be a result of his economic conservatism and would affect countries like Italy and Spain, whose predilection is for higher expenses rather than being fiscally conserved.
• Energy and Green Policy Adjustment
  • While the CDU is pro climate action, Merz may oppose expensive green policies on the way to a more pragmatic transition instead of jumping in full speed on decarbonization.

Germany’s Strategy Amid Potential Trump Presidency

• Problems with Trump America
  • This pro American attitude will be put to a test when, in case Donald Trump returns to the White House, Merz will apply such a strategy as Trump has declared NATO and with respect to European security commitment to be thinner.
• Increased Military Spending in Germany
  • Merz may therefore increase military spending and push for an enhanced defense strategy in Europe due to pressure from the United States.
• Accords and Economic Strategy
  • If Trump imposes tariffs on imports of European goods, Merz will have to balance relationships with the U.S. and China to somehow save Germany’s export driven economy.

Friedrich Merz’s leadership will represent a progressive shifting of the political spectrum in Germany to the right direction, emphasizing instead on economic policies, tougher immigration policies, and pro business strategies. His success will depend on handling all of these political affairs, such as trying to manage European alliances, responding to shifts in U.S. foreign policy, and raising the issues of domestic voters concerned with the rise of the far right.

Source: The Hindu

3. India-U.K. Resumes Trade & Investment Talks

Context:

India and the U.K. have formally restarted negotiations after a year long pause.

Discussions cover

1. Free Trade Agreement (FTA)
2. Bilateral Investment Treaty (BIT)
3. Social Security Agreement (SSA)

Key Highlights of the Talks

• Commerce Minister Piyush Goyal and U.K. Trade Secretary Jonathan Reynolds formally launched the two day talks in New Delhi.
• No deadline was given, but:
  • Goyal urged “speed, not haste” in the negotiations.
  • Reynolds stated that the trade deal is a priority for the U.K. but will be a long term agreement.
  • Bilateral trade (currently $20 billion) is likely to be doubled or tripled within a 10 year time frame.

Background & Challenges

• Three years ago, FTA discussions kicked started under Boris Johnson, then premier of the U.K., with 9 months set as a target for conclusion.
• Delays were caused by:
  • Political instability in the U.K.
  • Trade differences yet to be resolved
  • General elections in both countries (April–July 2024)

Investment and Social Security Issues

• Bilateral Investment Treaty (BIT)
  • A priority for the U.K., yet negotiations remain problematic.
  • Discussions are being handled by the Indian Finance Ministry.
• Social Security Agreement (SSA)
  • Two years back, India requested an SSA, but talks only got underway.
  • For India, it is a non negotiable and hence a pressing bottleneck.

The negotiators have been instructed to settle the outstanding issues.
Both sides seek to conclude a comprehensive and fair deal enhancing trade and investment relations.

4. Is America Peak Ajustment in a Bubble?

• Stratospheric Values
  • Shiller CAPE ratio is at 40x, in all of history only surpassed by 2000 (45x).
  • Tops even the 1929 peak (32x)—clearly bubble territory.

• Market Concentration
  • The top 10 stocks in S&P 500 account for ~40% of index (vs 25% in 2000).
  • Top decile of companies comprise 75% of market an all time high.
• AI Capex Surge
  • Alphabet, Amazon, Microsoft, and Meta plan to invest $320B on tech in 2025.
  • Including others, AI spending to exceed $400B ~10% of India’s GDP.
  • Still, the returns on investment remain open ended.
• Profit Margins at Records Highs
  • S&P 500 non financial firms’ median net profit margin is 12.5% (vs 5% in 1995).
  • In general, historical corporate profits lag nominal GDP, but in the past decade, earnings have overcome it with a margin of 4% annualy.
• US Fiscal Deficit & Debt
  • Seven percent of GDP fiscal deficit even with full employment.
  • Federal Debt is more than $28T and has a pretty short average maturity.
  • For 2000, the so called expert word was that the US wouldn’t have any debt by 2025.

Bull Case: AI Mediated Growth Supplemented by Demand Drivers

• Valuations driven by mega cap stocks
  • Top 10 companies trade at 27x earnings, while the rest of the S&P 500 trades at 20x.
  • AI investments set to drive labor productivity, already showing signs of such.
• Competitive Advantage for the US
  • Energy security, technology leadership, favorable demographics for large Western economies.
  • Much of the structural weakness in the EU, Japan, and China leaves the US as a truly unassailable market leader.
• AI Productivity Boom
  • AI driven efficiency gains would sustain higher GDP and earnings growth.
  • Today, market dynamics are largely different from 1999 2000 and not as rampant in speculation.
• Watch price action; give a word about a bubble
  • 1995 99: The Nasdaq tripled, then shot up by 86% in 1999 no similar acceleration today.
  • Burst of the 2000 Bubble: Nasdaq lost 30% in a month and fell 10% within a week no such pattern today.
  • Expect Fed Rate Cuts: Unlike 2000, the US will likely enter a rate cut cycle, thereby reducing recession risks.

Final Thoughts: “Peak America”?

The US markets may not be in a bubble, but conditions are likely to lead to poor returns forward.
If a bubble should burst, markets could see a decline of 40–50% that would greatly affect global risk appetite.
Gradual US asset de rating is more desirable than a sudden correction.
Signs are, the US is likely to underperform relative to global markets in years to come.

Source: Business Standard

National Affairs

1. Setbacks of Right to Information

What is Right to Information (RTI) Act?

Initial Promise & Setback of RTI

• Empowering Citizens
  • The Right to Information (RTI) Act has been in existence with a view to ensuring government transparency and accountability.
• Resistance from Bureaucracy
  • Public servants saw it as a transfer of power to citizens with their agenda of wiping its effective implementation.
• Efforts to Weaken the Act
  • Not long after its enactment, the government made an attempt to amend and dilute RTI, which once again activated public protests leading to withdrawal of the proposal.

Problems in Implementing the Act

• Poor Performance of Information Commissions
  • Most Information Commissioners are retired bureaucrats who often prioritize secrecy over transparency.
  • Case disposal rates are far below expectations, leading to long delays.
  • Pendency of over a year turns RTI into a Right to History rather than timely information.
• Weak Penalties
  • Despite the statute authorizing penal action against officers who delay or deny information, such penal provisions are rarely invoked by the commissioners.
• Government’s Delay Tactics
  • Delaying appointments of commissioners prolongs growing backlogs.

Judicial Blows to RTI

• 2011 Supreme Court Verdict (CBSE vs Aditya Bandopadhyay)
  • Enumerated that RTI could obstruct governance, thus coming in handy for its misuse.
  • Hence, it provided an excuse for bureaucrats not to disclose information.
• 2012 Supreme Court Judgment (Girish Ramchandra Deshpande case)
  • Extended the definition of ‘personal information’ so as to incorporate information about public servants.
  • This act of the Supreme Court blatantly ignored the RTI Acts provision of information available to Parliament being made available to citizens.
  • This became a precedent in denial of information; thus, exhibiting how far RTI had become RDI (Right to Deny Information).

Transparency Erosions, etc., & Impact of the Digital Data Act

• The Digital Personal Data Protection Act places yet additional restrictions on accessing public information, promoting secrecy.
• Judicial interpretations have gradually weakened RTI, effectively hollowing it out from its purpose.

A Call to Action

• The public and media must resist attempts to undermine RTI.
• RTI must be defended as a right under Article 19(1)(a) (Freedom of Speech & Expression).
• The Information Commissions and judiciary must be made accountable for enforcing the original intent of RTI.

The RTI Act was a landmark step toward transparency, but systematic efforts by the bureaucracy, government and judiciary have crippled it. The citizens must reclaim their right to information if they wish to keep democracy vibrant.

2. Tribal Rights vs. Tiger Conservation

Context:

Under conservation activities, the Munda tribal families of Jamunagarh village in Similipal Tiger Reserve have been displaced from their native land. This has been done against the will of its members more than once in 2015 and in 2022. Traditional performances and rituals till date have been banned, including rituals involving visits to sacred groves and burial grounds.

Cause of Recent Conflict

• Translocating the tainted tigress Zeenat from Maharashtra involved encroaching on tribal lands.
• Closure of prior village habitats by STR officials was due to the tiger supplementation program.
• The tribal voices maintain that such acts amount to infringement on their religious and cultural rights.

Tribal Voices and Protests

• Munda tribesmen protested in Bhubaneswar, demanding their right to continue with rituals.
• This has caused a great deal of emotional and spiritual distress to the displaced community, according to community leaders.
• Their health and well-being are at stake since elderly people are reportedly falling sick or dying due to loss of ancestral land.

Conservation vs. Human Rights: A Growing Debate

• The gates are locked to the outside world, as the authorities work to revive the tiger population.
• Tribal groups argue for coexistence, claiming that their traditions do not harm wildlife.
• The issue raises questions about how conservation and indigenous rights may be balanced under the Forest Rights Act.

The Munda Tribes

The Munda are an ethnic group of people in India who primarily live in the Chhotanagpur Plateau region. They are one of India’s largest scheduled tribes. 

• Location
  • Jharkhand, Odisha, and West Bengal, Madhya Pradesh, Bihar, Chhattisgarh, Bangladesh, Nepal, Tripura, and Uttarakhand.
• Language
  • Mundari, which is part of the Austro-Asiatic language family

The conflict in STR brings to light the wildlife conservation challenges posed by indigenous traditions. With the ever-increasing mosaic of legal and ethical debates surrounding any form of displacement, the need to find an avenue that is acceptable and productive for tribal heritage versus conservation is pressing.

Source: The Hindu

3. Internet Shutdowns Report

Context:

India did not impose the highest number of Internet shutdowns last year, with Myanmar seeing one additional disruption in 2024, according to a report by advocacy body Access Now. However, the number of shutdowns imposed by the government in charge the Union and State Governments here, and the military junta in Myanmar is still higher in India.

India No Longer the Highest in Shutdowns

• Myanmar instigated the maximum number of Internet shutdowns in 2024 with 85 disruptions. India imposed 84 shutdowns accounting for 28 percent of the global total.

Shutdown Trend in India

• The number of Internet shutdowns in India decreased from the previous year. States with the most shutdowns included Manipur with 21 shutdowns, Haryana with 12 shutdowns, and Jammu & Kashmir with 12 shutdowns.
• The key reasons for shutdowns include 41 related to protests and 23 related to communal violence.

Global Internet Shutdowns’ Highest Records

• This year stood at an all time high of 296 Internet shutdowns recorded worldwide. In Myanmar, several shutdowns were imposed by various actors, involving China, Thailand, and rebel groups.

Shutdowns for Exams in India

These include five shutdowns concerning exams: some examples include Jharkhand on September 22, 2024, shutting down the Internet for 5.5 hours during the government exam, Assam in September 2024 with shutdowns in several districts concerning state job exams, and Rajasthan in January 2024 to cut the Internet for the Rajasthan Public Service Commission exam. Shutdowns have been criticized by advocacy groups, including AccessNow, terming them disproportionate and unnecessary to prevent cheating.

Source: The Hindu

4. India’s Carbon Trading Scheme

Context:

Government to announce emissions intensity targets for nine industrial sectors by February end. Industries will have one year to implement compliance measures before carbon trading may commence.
Trading in carbon credits expected to start by October 2026.

The Trading Framework of Carbon Credits

• The Indian Carbon Market (ICM) is designed to reduce emissions, remove, or avoid greenhouse gases totally.
• Instead of reducing emissions caused by industries, it simply demands improved efficiency: burning less coal per unit of steel, for example.
• The nine sectors covered by the Guidelines are
  • Iron & steel
  • Aluminium
  • Chlor alkali
  • Cement
  • Fertilizers
  • Pulp & paper
  • Petrochemicals
  • Petroleum refineries
  • Textiles

India’s Carbon Market

Strictly speaking, India has set up carbon markets to trade carbon credits to reduce greenhouse emissions. These markets are meant to help India attain its target of net-zero carbon emissions.

• Operation
  • Carbon credits are earned by entities that generate carbon emissions from fossil fuels and are obliged to purchase them.
  • Entities that use non-fossil sources of energy earn credits that can be sold in the market.
  • The central government will lay down the carbon credit trading scheme.
• Advantages
  • The carbon market reduces the over-dependence of India on fossil fuels.
  • The carbon market will enable the industries to be able to comply with the carbon emission norms in the world.
  • This will provide one more channel for the entities trading in carbon certificates.

India’s Carbon Credit Trading Scheme (CCTS)

India’s Carbon Credit Trading Scheme (CCTS) is a market-based system that aims to reduce greenhouse gas emissions. The scheme will help India meet its climate goals. 

How does the CCTS work?

• Compliance mechanism: Mandates energy-intensive industries to reduce their emissions. 
• Offset mechanism: Encourages voluntary actions from entities that aren’t covered by the compliance mechanism. 
• Measurement, Reporting, and Verification (MRV): Ensures accurate and transparent compliance. 

What are the benefits of the CCTS? 

• Helps protect coastal areas, Improves agricultural productivity, and Helps conserve biodiversity. 

Carbon Market Mechanisms at the Global and Indian Levels

• European model
  • Carbon credits represent one ton of CO₂ avoided.
  • Companies trade credits based on their emission reductions beyond the maximum limits set under their caps.
• Indian Model
  • Emphasis on controlling emissions intensity level (GHG emissions per unit production reduced).
  • No direct cap on emissions, however, companies are compelled to adopt modern technologies for mitigation.

Introduction of Voluntary Carbon Offsets and Expanding the Market

• Voluntary offsets (projects for afforestation) create carbon credits.
• These credits may also be sold on the international market for compliance.
• If regulatory conditions are in place, a trading of offsets scheme might commence this year.

India Promised Climate Change Efforts

• Goal: Reduce emissions intensity of GDP by 45% (from 2005 levels) by 2030.
• This is expected to be aided through carbon trading.

Banking/Finance

1. RBI Circular Concerning Prepayment Penalty

Context:

The Reserve Bank of India (RBI) has proposed a ban on prepayment penalties on retail and small business loans. The visions behind this proposal are expected to hamper lenders’ fee income and profitability.

Impact of the Provisions

• The impact is more likely to be harder on non banking financial companies (NBFCs) compared to banks.
• Competition is expected to increase, thereby switching borrowers between lenders.

Provisions of Draft Circular

• No penalties for prepayment or foreclosure on floating rate loans for individuals (non business purposes).
• No foreclosure charges on floating rate loans to MSMEs of up to ₹7.5 crore.
• Already exempted from prepayment are home loans, HFC or bank mortgage portfolios will not be impacted.

Expected Impact on NBFCs & Banks

• Foreclosure penalties on floating rate loans are not charged by major banks, thus NBFCs are more affected.
• The competing nature will affect NBFCs’ key loan segments, loan against property (LAP), SME loans, and business loans, causing reduced profitability.
• To counter losses, these lenders will likely:
  • Shift attention toward higher yielding customers and loans.
  • Increase interest rates or processing fees.
  • Achieve operational efficiency to maintain their profit margins.

Sector-Wise Exposure of Major Lenders (SME Loans, LAP, Business Loans in %)

Lender	SME Loans	LAP	Business Loans
State Bank of India	12%	NA	NA
HDFC Bank	19%	NA	14%
ICICI Bank	NA	NA	19%
Axis Bank	11%	7%	6%
Bank of Baroda	11%	2%	NA
Bajaj Finance	12%	3%	NA
Aditya Birla Finance	29%	26%	NA
Cholamandalam	4%	22%	NA
LIC Housing Finance	NA	12%	NA
Mahindra & Mahindra Financial Services	5%	NA	NA

It is expected that NBFCs and banks will submit feedback to the draft by March 21. Adjustments to lending strategies may follow to avert loss of revenue. Increase in lending rates or processing fees may be affected.

2. Banks’ Reliance on Certificates of Deposit

Context:

• Outstanding CDs surged to a historical high of ₹5.19 trillion on Feb. 7.
• Commercial Papers rose to ₹4.79 trillion on Feb. 15, the highest after October 2019.
• The liquidity deficit in the banking system continues for 10 consecutive weeks, standing at ₹2.37 trillion currently.
• The RBI is likely to soon announce additional measures to enhance liquidity, including a $10 billion swap on Feb. 28.

Reasons for the Banks’ Reliance on CDs and CPs

• Slow growth in deposits coupled with strong credit demand in the fourth quarter.
• ₹71,094 crore worth of CDs were issued in the two weeks ended Feb. 7.
• Large borrowers are choosing CPs since they expect lower policy rates.

Liquidity Coverage Ratio (LCR) limitations

• Only 2.3% of banks’ deposits today would be in CDs as against 8% a decade back before the introduction of LCR.
• Core liquidity at ₹34,000 crore (Jan. 25) remains low because of forex interventions and March tax outflows.
• RBI liquidity measures would include:
  • $10 billion buy/sell swap with a three year tenor on Feb. 28.
  • Second swap auction after a $5 billion injection with a six month tenor on Jan. 31.

Commercial Paper (CP)

Commercial paper (CP) is a short-term debt instrument that companies use to raise funds. It’s a promissory note that acknowledges a debt and promises to repay it within a set time. 

How it works?

• CP is usually offered at a discount and matures in one to six months. 
• CP is an unsecured form of debt, meaning it doesn’t have collateral. 
• It’s typically issued by large corporations or banks. 
• CP is used to finance short-term needs like payrolls, inventories, and accounts payable. 

3. RBI Has Lifted Restrictions on the Urban Cooperative Banks

Context:

The Reserve Bank of India (RBI) has lifted restrictions on the Urban Cooperative Banks with regard to lending limits to small value borrowers and dedicated real estate sector exposure, thereby giving greater flexibility to UCBs with regards to conducting their affairs, with due regard to sound risk management.

Key Highlights:

Increase in Small Loan Limit

• Old Limit: ₹25 lakhs or 0.2% of Tier I capital (maximum of ₹1 crore for a single borrower).
• New Limit: ₹25 lakhs or 0.4% of Tier I capital (maximum of ₹3 crore for a single borrower).
• Target: 50% of total loans should be small-value loans by March 31, 2026.
• Check: The board of UCBs must monitor portfolio quality and may have to lower the limit if quality deteriorates.

Increased Exposure to Property & Real Estate

• UCBs can go beyond the 10% cap on real estate project loans by 5%, provided that it is earmarked for loans for houses under priority sector lending.
• Newly prudential limit for housing loans are:
  • UCB (Tier I): ₹60 lakh per dwelling unit
  • UCB (Tier II): ₹1.4 crore per dwelling unit
  • UCB (Tier III): ₹2 crore per dwelling unit
  • UCB (Tier IV): ₹3 crore per dwelling unit

Amended And Changed Exposure Limits

• Housing loans (non-priority sector): Max 25% of total loans & advances.
• Real estate sector (excluding housing loans to individuals): Max 5% of total loans and advances.

Impact on UCBs

• Enhanced lending flexibility to fast-track their business development without violating any regulatory constraints.
• More opportunities to fund housing and real estate projects under a tightly controlled environment.
• Competition with commercial banks may intensify, especially in housing loans and SME financing.

Source: Business Standard

4. Fintechs Enter CBDC Space

Context:

CRED & MobiKwik have created the e Rupee wallets in partnership with Yes Bank, marking the first scale expansion backed by fintech in the pilot of the CBDC of the Reserve Bank of India. This entry is expected to further digital currency acceptance, simplify transactions, and reduce cash dependency.

Key Highlights:

• Limits to Transactions, at Present
  • ₹10,000 per transaction.
  • ₹50,000 a day.
• Cash in up to ₹1 lakh: Only stored if the amount in notes is equal to ₹500 and lower denominations.

What is Central Bank Digital Currency?

Fintech vs. Bank-Backed CBDC Wallets: What’s the Difference?

Feature	Bank-Backed Wallets	Fintech-Backed Wallets
Control & Oversight	Managed directly by banks	Offered by fintechs with sponsor banks
User Experience	Traditional banking interfaces	Agile, feature-rich fintech apps
Regulatory Compliance	Direct RBI oversight	Compliance via partner banks
Adoption Potential	Limited to bank customers	Broader reach via fintech user base

Key difference: While UPI enables real time bank transfers, the e rupee is a sovereign digital currency issued directly by the RBI.

Current Adoption & Fintech Innovations

• 5 million customers and 420,000 merchants have been CBS pilot participants as of June 2024.
• CRED: Beta launches allow P2P transfer & UPI linked transactions.
• Future updates to enable programmable merchant payments, CREDPay integration, and PIN less transactions for amounts under ₹500.
• MobiKwik: Full rollout for P2P and P2M transactions in tow.

Future of E Rupee: What Lies Ahead?

• The finance tech world
  • Smart contracts & money programmed: Automated refunds, cashback tracking, and purposeful restrictions for payments.
• The machinery for revolutionizing merchant payments
  • CREDPay & PIN less Payments enabling frictionless business transactions.
• Financial Inclusion & Mass Adoption
  • Working toward a realm where CBDC transcends constraints of conventional digital wallets, where cashless transactions become smooth and accessible.

Challenges & Opportunities

• Fintech firms drive adoption through superior UX, consumer education, and innovative B2C scaling.
• Cost effectiveness will be the key, both fintechs, banks, and regulators alike.
• Regulatory clarity and seamless integration will define the long term success of India’s CBDC.

The RBI allowing fintechs a niche in the CBDC ecosystem is a breaking point for digital payments; e rupee wallets will be a viable, secure, efficient, and programmable substitute for cash only if widely accepted through awareness and general use, seamless integration, and real life utility.

Source: Mint

Economy

1. S&P Global Report on U.S. Tariff

Context:

S&P Global Ratings claims that several Asia Pacific economies may be the very targets of an advancing higher tariff regime under a presumed Trump administration. India, South Korea, and Thailand have been identified to be at most risk regarding US trade retaliation. With their high exposure to the US, Vietnam, Taiwan, Thailand, and South Korea are more susceptible to tariff influence.

Risks of Trade Policy & Tariffs

• The Trump administration has already imposed:
  • 10% additional tariffs on Chinese imports.
  • 25% on steel and aluminum imports.
• Trump has announced plans to ratchet up reciprocal tariffs against some key US trade partners, including India.

Economic Uncertainty & Tariffs Ahead

• S&P warns more trade disruptions:
  • High uncertainty due to the US’s extensive powers to impose tariffs.
  • Bilateral trade negotiations greatly, indeed, govern tariff policy.

Tariff Discrepancies in Asia Pacific

• Some Asia Pacific nations impose higher tariffs on US goods than the reverse.
• Such discrepancies may make them easy prey for retaliatory measures.
• The scope and methodology of such tariff comparisons will determine much of our future trade policy.

India’s Vulnerability to US Tariffs

• India, South Korea, and Thailand are ranked highest in retaliatory risk against US tariffs.
• S&P’s evaluation proceeded with the use of the weighted average tariff rate in estimating potential risks.
• Although vulnerable, India’s huge domestic market provides it with some insulation against external trade shocks.

Further negotiations and trade policy choices will form the foundation for deciding upon tariff actions.
Key sectors such as manufacturing, steel, and technology are likely to bear greatly increased trade barriers.

Facts To Remember

1 Regional circular economy meet in Jaipur from March 3

India will host the 12^th regional 3R (reduce, reuse, recycle) and Circular Economy Conference in Asia and the Pacific in Jaipur from March 3 to 5, Union Urban Affairs Minister Manohar Lal announced.

2. Philippines, Japan agree to further enhance their defence partnership

Japan and the Philippines agreed on Monday to deepen defence ties amid a “severe” security environment, Japanese Defence Minister Gen. Nakatani said.

3. ₹ 22,000 cr transferred as 19th PM KISAN instalment

More than ₹ 22,000 crore was transferred into the bank accounts of 98 million farmers across the country as Prime Minister Narendra Modi on Monday released the 19th instalment of the PM Kisan Samman Nidhi scheme.

4. Masato Kanda appointed 11th ADB president

Asian Development Bank (ADB) on Monday said Masato Kanda has assumed office as the 11th President of the multilateral development bank.

5. Modi to attend Bimstec meet in Thailand in April

India has conveyed to Thailand that PM Modi will travel to the country for the Bimstec summit on April 3-4, said official sources on Monday. Apart from India and Thailand, the inter-regional Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation includes as member states Myanmar, Bangladesh, Nepal, Sri Lanka and Bhutan and its summit is held biennially.

6. Defence Minister confers gallantry, service medals to Indian Coast Guard personnel

Defence Minister Rajnath Singh today conferred gallantry, distinguished service and meritorious service medals to personnel of the Indian Coast Guard at an investiture ceremony in New Delhi. 

7. FIH Pro League: Indian women lose 2-4 to Netherlands

In the women’s Hockey FIH Pro League, India lost to World No. 1 Netherlands, 2-4 at the Kalinga Stadium in Bhubaneswar last night.

8. Australia, New Zealand register highest breast cancer rates globally

Australia and New Zealand have the highest rates of breast cancer incidence in the world. In a new study, researchers from Australia and Canada analysed the breast cancer incidence and mortality rates in 185 countries. 

9. Assam turning into startup hub, soon to become manufacturing centre of northeast: PM Modi

Assam is now the centre of unlimited possibilities and gateway to South East Asia and India, said Prime Minister Narendra Modi while addressing the inaugural session of the Advantage Assam 2.0 Investment and Infrastructure Summit in Guwahati today.

10. Army Chief Gen Upendra Dwivedi meets French counterpart to boost defence ties

The Chief of the Army Staff, General Upendra Dwivedi held a meeting with French Army Chief General Pierre Schill during his ongoing visit to France.

11. UN Security Council adopts US-drafted resolution appealing for swift end to Ukraine conflict

The UN Security Council has adopted a US-drafted resolution appealing for a swift end to the Ukraine conflict and urging a lasting peace between Russia and Ukraine. 

12. India organizes 1st-ever Capacity Building Programme on UNSC Resolution 1540

The government, in collaboration with the United Nations Office for Disarmament Affairs, is organizing the first-ever Capacity Building Programme on the United Nations Security Council Resolution 1540 and Strategic Trade Controls for Asia-Pacific in Andhra Pradesh, starting today.