Current Affairs 25 January 2025

Daily Current Affairs Quiz
25 January, 2025

International Affairs

1. Myanmar Civil War

Context:

The raging conflict in Myanmar will feature prominently in discussions between visiting Indonesian President Prabowo Subianto and Prime Minister Narendra Modi during the India visit, sources said.

Civil War Definition

• A civil war is an extended armed conflict among organized factions of the same state.
• This typically includes battles by different political, social or ideological forces vying to dominate governance territory or resources.

Background of the Present Civil War in Myanmar

• 2020 Elections and Military Coup
  • The National League for Democracy NLD led by Aung San Suu Kyi won the 2020 elections.
  • The military junta Tatmadaw refused to accept the results citing baseless allegations of electoral fraud .
• In February, 2021
  • Tatmadaw staged a coup detaining NLD leaders declaring a state of emergency and taking control of the government.
• Protests and Resistance
  • The coup was followed by massive protests across the country demanding democracy and the freedom of arrested leaders.
  • Movements of civil disobedience including civil servants, activists and citizens came out to protest against the junta.
• Popular Resistance Forces
  • Due to increased repression political organizations launched the popular resistance forces known as PDFs.
  • PDFs allied with the NUG an illegal government formed by lawmakers who were overthrown in their bid to overthrow the junta .

Current Situation

The situation in Myanmar has escalated over the last year, with the military junta losing control over areas in Chin state, Rakhine, and the Sagaing region. Maungdaw near the Indo-Bangladesh frontier was the latest town to fall to the Arakan Army in December 2024.

Effect of Myanmars Civil War on India

• Diplomatic Neutrality
  • India has adopted a cautious approach expressing concern over democratic disruptions while engaging with the junta to safeguard its strategic interests.
• Burmese Refugees
  • An influx of Myanmarese nationals into Northeast Indian states particularly Mizoram and Manipur has added pressure amid existing instability in Manipur.
• Strategic Implications
  • Antijunta forces have captured towns near key border points.
• Rikhawdar Situated near Zokhawthar in Mizoram
  • Khampat In Sagaing Region near Manipur and forms part of the proposed India-Myanmar-Thailand highway project.

India’s Legislative Framework for Refugees

• Foreigners Act 1946
  • Gives the central government the powers to detect detain and deport illegal foreign nationals.
• Passport Entry into India Act 1920
  • Enables the authorities to expel illegal foreigners forcibly under constitutional measures.
• Registration of Foreigners Act 1939
  • Makes it a statutory requirement for foreign nationals with visas over 180 days duration to report to a Registration Officer within 14 days of landing.
• Citizenship Act 1955
  • Makes rules regarding renunciation termination and denial of citizenship.
• Citizenship Amendment Act 2019
  • CAA Provides citizenship to persecuted religious minorities from Bangladesh, Pakistan and Afghanistan .
• Standard Operating Procedure SOP
  • Guides agencies on how to handle foreign nationals claiming refugee status.

Dual Citizenship in India!

2. Sri Lanka Revokes Adani power Purchase Deal

Context:

Sri Lanka has revoked a 2024 power purchase pact with Adani Green Energy for a proposed wind power plant in the island’s Northern province following corruption allegations, news agency AFP reported.

Key Findings:

• Development Summary
  • Sri Lankas administration cancelled the proposed 2024 power purchase contract with Adani Green Energy for its wind power venture in the Northern Province. Two wind power ventures at Mannar and Pooneryn would be involved in the 442 million project and will be critically examined.
• Corruption Allegations
  • Lacked a transparent tendering process for the project award.
• High Costs
  • A competitive bidding process could have reduced the costs of the project by many folds.
• Environmental Concerns
  • There was opposition based on the fact that the project area was considered a critical aviation corridor and that it may cause disruption to this corridor.

Background and Controversy

Approved by the Ranil Wickremesinghe government in February 2023 the project was opposed by:

• Environmentalists Cited concerns about ecological and aviation corridor impacts.
• Economists criticized the high rate of power purchase.
• Anti Corruption Activists criticized the fact that there was no competitive bidding process.

Way Forward

The revocation of the agreement signals Sri Lanka’s push toward more transparent and costefficient foreign investments. Of course the project is not canceled but rather the renewed examination highlights the governments efforts to align energy projects with national priorities as well as ensure fairness in investment processes.

National Affairs

1. GSLV-F15 NV-S02 Mission

Context:

The Indian Space Research Organisation (ISRO) is gearing up for the 100th launch from the Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh, which is scheduled to take place on January 29, 2025 with the launch of the GSLV-F15 NVS-02 mission.

Details about the Launch

• Date
  • The launch date has been set on 29th of January at Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh
• Vehicle
  • It will utilize a GSLV F15 and is well provided with an indigeneous cryogenic stage for the same mission.
• Objective
  • To place the NVS02 satellite into a Geosynchronous Transfer Orbit (GTO).

Geosynchronous Transfer Orbit (GTO)

A GTO is an elliptical orbit through which the satellite passes from geosynchronous transfer orbit into the geosynchronous orbit.

• How it Works?
  • Satellites are placed in GTO for intermediary purposes towards the GSO. The GTO orbit has both apogee, which is a point distant from Earth and a perigee as the nearest to Earth.
  • At apogee, the satellite will rotate parallel to Earth’s equator and will fire its rocket engine to reach a circular orbit.
• Why it is Used?
  • The manufacturers of launch vehicles tend to boast of how much payload they can put into a GTO.
  • Satellites in geosynchronous orbits are helpful in communications as they can cover large portions of Earth.
• Related Missions
  • GTOSat: A mission that investigates acceleration and loss mechanisms of relativistic electrons in the Earth’s outer radiation belts.

About the NVS02 Satellite

• Purpose
  • NVS02 is part of the Navigation with Indian Constellation (NavIC) system.
• Series
  • This satellite is the second in the NVS series designed to enhance India;s regional navigation capabilities.
• Improve Features
  • It is one of the five follow on second generation NavIC satellites NVS01 to NVS05 dedicated toward improving and ensuring continuity of navigation services

NavIC Indias Regional Navigation Satellite System

• Service
  • Provides accurate Position Velocity and Timing (PVT) services.
• Covers
  • India and an area of about 1500 km beyond the Indian landmass.
• Services
  • Standard Positioning Service (SPS)
    • Provides position accuracy better than 20 meters and timing accuracy better than 40 nanoseconds.
  • Restricted Service (RS)
    • More security and encryption is provided along with the navigation service to the authorized users.

Importance of the Mission

• Milestone
  • It marks ISROs 100th launch from the Sriharikota spaceport that reflects decades of achievements in space travel.
• Strategic Advantage
  • The NavIC system will further the self reliance of India in navigation technology not relying on other foreign systems such as GPS.
• Continuity of Service
  • It enhances the NavIC constellation to provide uninterrupted navigation services to users in India and the neighboring regions.

Proba-3 Mission

2. Pralay Missile

Context:

The Defence Research and Development Organisation (DRDO) is set to showcase “Pralay”, an indigenous short-range quasi-ballistic missile, at the Republic Day parade in New Delhi on Sunday.

• About
  • The Pralay is a canisterized surface-to-surface shortrange ballistic missile intended for battlefield usage.
  • It is manufactured by India’s Defence Research and Development Organisation.

Salient Features

• Integration of Technologies
  • Pralay is the fruit of integrating technology from the exo atmospheric interceptor missile Prithvi Defence Vehicle (PDV) and the tactical missile Prahaar.
• Mobility
  • It has the canisterized design. Thus it is easily deployed and mobilized Especially it is suitable for warfare situations.
• Objective
  • This is designed to be used in tactical scenarios In the shortrange battle this can be considered a strong alternative for accurate strikes.
• Launch Platform
  • 12 x 12 Ashok Leyland HMV TEL
• Designer
  • Research Centre Imarat (DRDO)

Agni-4 Missile by India

3. NITI Aayog’s Fiscal Health Index (FHI), 2025

Purpose of the Report

The Fiscal Health Index (FHI) evaluates the fiscal performance of 18 major Indian states.
It focuses on key indicators such as contribution to GDP, public expenditure, revenues and fiscal stability to assess statelevel fiscal health.

Top Performing States Achievers

• States
  • Odisha, Chhattisgarh, Goa and Jharkhand.
• Success Factors
  • Strong capital investment up to 4% of Gross State Domestic Product or GSDP.
  • Successful mobilization of non-tax revenue.
  • Revenue surplus with low interest payment up to 7% of revenue receipts.
  • Highest overall index score 678 for Odisha with a lead in debt index 990 and in debt sustainability at 640.

Front Runners

• States
  • Maharashtra, Uttar Pradesh ,Telangana, Madhya Pradesh and Karnataka.
• Strengths
  • Developmental expenditure very high up to 73 percent.
  • Own tax revenues growth has been consistent.
  • Improved fiscal management and the debt to GSDP ratio 24 per cent.

Moderate Performers

• States
  • Tamil Nadu, Bihar, Rajasthan and Haryana.
  • These States have performed moderately but have areas of improvement in the parameter of debt and also on expenditure management.

Aspirational States

• States
  • Punjab, Andhra Pradesh, West Bengal and Kerala.
• Challenges
  • Low revenue mobilization and the fiscal deficits are high.
  • Increasing debt burdens and bad debt sustainability.
• Quality of Expenditure and Debt management
  • Quality of expenditure and debt management is a concern for the States of Kerala and Punjab. West Bengal has problems with revenue mobilization and debt index issues.
  • Andhra Pradesh is plagued with a very high fiscal deficit.
  • The debt profile of Haryana is bad.

Fiscal Health Index (FHI) 2025 – Methodology & Key Indicators

Data Sources & Scope

• Source: Comptroller and Auditor General (CAG)
• Period Covered:
  • 2022-23 (for index calculation and analysis)
  • 2014-15 to 2021-22 (historical trends provided in the report appendix)

Five Major Sub-Indices & Their Minor Sub-Indices

Major Sub-Index	Minor Sub-Indices	Purpose & Insights
1. Quality of Expenditure	1.1 Total Developmental Expenditure / Total Expenditure	Measures proportion of budget spent on long-term economic growth & social services
	1.2 Total Capital Outlay / GSDP	Assesses how much of the state’s economic output is invested in infrastructure & long-term assets
2. Revenue Mobilisation	2.1 State Own Revenue / GSDP	Indicates financial independence by measuring state-generated revenue vs. economic output
	2.2 State Own Revenue / Total Expenditure	Shows the extent to which the state’s expenditures are funded by its own revenue sources
3. Fiscal Prudence	3.1 Gross Fiscal Deficit / GSDP	Evaluates borrowing levels relative to economic size, signaling potential debt sustainability concerns
	3.2 Revenue Deficit / GSDP	Highlights if the state is generating sufficient revenue to cover its operational costs
4. Debt Index	4.1 Interest Payments / Revenue Receipts	Measures percentage of revenue receipts used for interest payments, assessing debt servicing capability
	4.2 Outstanding Liabilities / GSDP	Reflects overall debt burden in proportion to the state’s economic output
5. Debt Sustainability	5.1 Growth Rate of GSDP – Growth Rate of Interest Payments	A positive gap suggests debt is manageable; a negative gap indicates fiscal stress

Detailed Explanation of Key Indicators

1. Quality of Expenditure

• Developmental Expenditure: Spending on long-term economic growth & infrastructure (schools, hospitals, roads, etc.)
• Non-Developmental Expenditure: Routine government expenses like salaries and operational costs
• Key Ratios:
  • Developmental Expenditure/Total Expenditure → Shows government’s spending priorities
  • Capital Outlay/GSDP → Measures investment in infrastructure & long-term assets

2. Revenue Mobilisation

• State Own Revenue: Income from state taxes & non-tax revenue sources
• Key Ratios:
  • State Own Revenue/GSDP → Reflects state’s financial self-sufficiency
  • State Own Revenue/Total Expenditure → Measures the extent to which a state funds its own expenses

3. Fiscal Prudence

• Gross Fiscal Deficit: Gap between total expenditure & total revenue, indicating borrowing needs
• Revenue Deficit: When government income is insufficient to cover operational costs
• Key Ratios:
  • Gross Fiscal Deficit/GSDP → High ratio signals unsustainable borrowing
  • Revenue Deficit/GSDP → High ratio shows reliance on borrowing to fund basic expenses

4. Debt Index

• Key Ratios:
  • Interest Payments/Revenue Receipts → High ratio means more revenue is spent on debt servicing, reducing funds for development
  • Outstanding Liabilities/GSDP → Measures overall debt burden relative to state’s economy

5. Debt Sustainability

• Key Indicator:
  • Growth Rate of GSDP – Growth Rate of Interest Payments → Positive gap shows healthy economic management; negative gap signals financial distress

Key Takeaways

• Higher rankings in FHI indicate strong fiscal health, sustainable debt, and efficient resource allocation.
• Lower rankings highlight high deficits, excessive borrowing, and poor revenue generation.
• Interstate disparities in expenditure quality, debt management, and revenue mobilisation underline the need for targeted fiscal reforms.

Importance of the Report

• For better understandings of state level fiscal policy and practice.
• Proves necessity in revamping revenue mobilization and debt management issues in states.
• It encourages achievers and frontrunners to continue and build upon fiscal discipline and developmental spending.

This report provides a guide for states to enhance the stability of their finances and efficiently use their resources to achieve sustainable economic growth.

Source: The Hindu

NITI Aayog

4. Spinal Muscular Atrophy (SMA)

Context:

Health activists and patients with spinal muscular atrophy (SMA) have refuted the Union government’s affidavit in the Kerala High Court and demanded urgent action to reduce the cost of medicines required for this genetic disorder.

Spinal Muscular Atrophy (SMA)

SMA is a rare genetic disease causing weakness and wasting of muscles. The motor neurons that are found in the spinal cord and brainstem controlling the voluntary movements of the body get affected by this disorder.

• Symptoms
  • Weakness of muscles of shoulders, hips, back, chest, and upper legs.
  • Respiratory distress, feeding difficulty, and dysphagia.
  • Poorly sitting or rolling over.
  • Scoliosis: an abnormal curve of the spine.
  • Joint deformity and stiffness.
  • Fragile bones.
• Types of SMA
  • Type 1
    • The most common and the worst type of SMA, which typically start at birth or in early infancy.
  • Type 2
    • Typically appears when the patient is between 6–18 months old, this can lead to progressive muscle weakness, scoliosis, and restrictive lung disease.
  • Type 3
    • Kugelberg-Welander syndrome or juvenile SMA, it could start up to 18 months of age or even in late adolescence.
  • Type 4
    • The adult form of SMA, which typically starts after age 35 and gradually deteriorates over time.
• Treatment
  • Close monitoring of respiratory function, including secretion clearance and possibly assisted ventilation.
  • Bracing for scoliosis until surgery is feasible.
• Inheritance
  • SMA is inherited from parents through defective genes. If both parents pass the defective gene, the child is likely to have SMA. If only one parent passes the gene, the child is a carrier.

Spinal Muscular Atrophy Cases Related Issues in India

According to available data, Spinal Muscular Atrophy (SMA) affects approximately one in every 7,744 live births in India, meaning around 3,200 babies are born with SMA each year in the country, this makes SMA a relatively rare but significantly impactful condition in India. 

Major issues

The main problem with SMA drugs in India is that they are too expensive, and most patients cannot afford the treatment, such as Zolgensma, which costs as much as 17 crores rupees for a single dose.

• High cost of treatment
  • The significant challenge is the prohibitively high cost of drugs like Zolgensma for SMA, which is ranked as one of the most expensive medicines globally.
• Restricted access
  • Unless people afford the costs, many families across India cannot access SMA treatment and hardly have any alternatives.
• Reliance on crowdfunding
  • In an effort to be able to obtain treatment, families rely heavily on fundraising campaigns to raise a large amount of money to access treatment.
• Government intervention needed
  • There are calls for government intervention that would make the SMA drugs much cheaper, by either price control or subsidy.

5. Guillain-Barré Syndrome (GBS)

Context:

Alerts from three Pune hospitals to local authorities about a higher than-usual occurrence of Guillain-Barré Syndrome (GBS), a rare but treatable autoimmune disease, blew up into an unprecedented cluster of 73 cases by almost trebling in four days from the initial 26 cases that caused alarm. 

Guillain-Barré Syndrome (GBS)

Guillain-Barré syndrome (GBS) is a very rare neurological condition. It happens when the immune system of a body attacks the peripheral nervous system. This will result in the symptoms of weakness, tingling, numbness, and paralysis in some people. GBS is life-threatening but most people can fully recover.

• Symptoms
  • Weakness or tingling in the legs that may advance to the arms and upper part of the body.
  • Difficulty walking or climbing the stairs.
  • Sharp shooting pain in the legs or back.
  • Shortness of breath, difficulty swallowing, or speech.
  • Diplopia.
  • Muscle weakness of the face.
• Causes
  • Gbs is most commonly associated with a preceding respiratory or gastrointestinal infection.
  • The exact cause is not known, but it is possible that the body’s immune system mistakenly identifies the nerve cells as a threat.
• Treatment
  • Gbds are admitted promptly to a hospital.
  • Plasma exchange, intravenous immunoglobulin therapy (IVIG) and rehabilitation are treatments.
• Recovery
  • Most people regain the sensation within a few weeks to a few years; some may have residual weakness or paralysis.

Banking/Finance

1. Forex Reserves

Context:

India’s foreign exchange reserves fell to a near 11-month low of $623.98 billion as of Jan. 17, extending their losing streak for a seventh straight week, RBI data showed.

What is Forex Reserve?

Foreign exchange reserves, also called forex reserves, are those assets a nation’s central bank holds to support the nation’s currency and financial stability.

What does forex reserves consist of?

• Foreign currency
  • Those deposits made in foreign currencies such as dollars, Euros, or pound sterling.
• Gold
  • Reserves of gold that would help act as a hedge to inflation
• Special drawing rights (SDRs)
  • International reserve assets established by the IMF.
• IMF reserve position
  • The share of a country and its voting rights in the IMF.
• Treasury bills
  • Paper issued by the government.
• Banknotes
  • Currency in paper.
• Bank deposits
  • Money kept in the banks.

What do foreign exchange reserves do?

• They intervene in the foreign exchange market to affect the price of a currency.
• They give confidence in the currency and the economy.
• They can be used to meet balance of payments financing needs.
• They can be used as a basis for foreign borrowing

Who manages forex reserves in India?

• The Reserve Bank of India (RBI) manages India’s forex reserves.

Know more about Forex Reserve>>

2. The Central Bank Digital Currency (CBDC)

Context:

The Central Bank Digital Currency (CBDC) could be used for collections of micro loans as an innovative tool to streamline the mechanism for collections, a top Reserve Bank of India (RBI) official said, citing insufficient innovation on collection-side of lending.

Origin

The first central bank digital currency (CBDC) was the Avant smart card, which was launched in 1993 by the Bank of Finland. However, it was discontinued in the early 2000s.

What is Central Bank Digital Currency (CBDC)?

CBDC is the digital version of a country’s fiat currency. It is issued by the central bank and is a liability of the central bank.

• How does it work?
  • CBDCs are digital coins or accounts that are backed by the government.
  • They can be used to make digital transactions and transfers.
  • CBDCs can be developed in centralized or decentralized ways.
• Why is it being considered?
  • CBDCs would help identify and prevent crime much easier.
  • They would help make it easier to collect taxes, hence reducing tax evasion.
  • CBDCs can bring financial access to people who are unbanked currently.

Examples of CBDCs

• Digital Rupee: India’s CBDC.
• JAM-DEX: Jamaica’s CBDC, which is the first formally ratified legal tender as a CBDC.
• Sand Dollar: The Bahamas’ CBDC, which is blockchain based.
• DCash: CBDC of the Eastern Caribbean Central Bank, based on blockchain.

Pros and Cons

• CBDCs would make it impossible to have bank runs or bank failures.
• CBDCs would enable easier detection of criminal activities and easier curb of the same.
• CBDCs would make collection of taxes easy and reduce tax evasion.
• However, the risks associated with CBDCs include privacy, sovereignty, and even financial stability.

Know more about Central Bank Digital Currency (CBDC) >>

Source: Business Standard

3. SEBI Complaints Redress System (SCORES)

Context:

It has been challenging to keep track of adherence and penalize companies trading on different stock exchanges feels Ketan Mukhija senior partner Burgeon Law. He attributes this trend to the piling up of filings and more importantly the complexity involved in handling complaints most of which reach SEBI via informal routes such as WhatsApp groups.

• No of Grievances
  • The complaint number at SEBI has been quite large From October 2021 to December 2024 the regulator received about 137000 investor complaints and resolved 45,000 during this period
• Disposal Rate
  • SEBI has been able to dispose of around 3600 complaints per month but it is not always sufficient to bring down the backlog since new complaints keep coming in.

Impact of Delays

• Investor Frustration
  • The growing number of unresolved complaints coupled with delays in resolution has contributed to a sense of frustration among investors.
• Data on Pending Cases
  • Although SEBI settles a large number of complaints every month the steady flow of new cases and the existing pendency means that many complaints lie pending for long periods

SEBI Complaints Redress System (SCORES)

This is an online system that deals with investment complaints against listed entities as well as other securities market entities. The SCORES service lets the investor raise his complaint, trace the status, and even appeal for redressing. The following is how one can file a complaint at SCORES  

• Process
  • Register on SCORES website or app.
• Who can access SCORES?
  • Investors who have a grievance against a listed company, registered intermediary, or market infrastructure institution.
• What happens after a complaint is filed?
  • The entity concerned has to file an Action Taken Report with SEBI within 30 days.
  • SEBI suo motu alerts entities to act in time in redressing grievances.
• What can be complained about? 
  • Issues with listed companies, Issues with registered intermediaries, and Issues with market infrastructure institutions. .

Source: Mint Page-14

4. Securities Appellate Tribunal (SAT)

Context:

Securities Appellate Tribunal (SAT) has upheld Securities and Exchange Board of India’s (Sebi) decision, ordering Trafiksol ITS Technologies Ltd to refund ₹45 crore to investors and halt its share listing.

Overview

The Securities Appellate Tribunal (SAT) is a statutory and independent body to hear appeals against orders issued by such regulatory authorities as

• Securities and Exchange Board of India SEBI
• Insurance Regulatory and Development Authority of India (IRDAI)
• Pension Fund Regulatory and Development Authority PFRDA
• How Was SAT Established
  • Established under the Securities and Exchange Board of India Act 1992
  • It functions as an autonomous adjudicatory body that is separate from the above-mentioned regulators.

Functions and Powers

• It Entertains Appeals
  • It handles appeals arising from orders made by SEBI IRDAI and PFRDA.
  • Offers a platform on which appeals arising from regulatory decisions are entertained.
• Other Powers
  • Possesses the powers vested by the SEBI Act and other enactments to perform its adjudicatory function.

Appointments to the SAT

• Presiding Officer and Members
  • Hold office for a term of five years from the date of appointment or reappointment.
  • Their appointment is to be made after considering such qualifications and experience as may be specified in the SEBI Act and the regulations thereunder.

Economy

1. HSBC Flash Purchasing Manager’s Indices (PMI)

Context:

In a sobering first indicator about India’s economy in 2025, private sector activity appears to have hit the brakes in January with output and growth levels sliding to a 14-month low, as per the survey-based HSBC Flash Purchasing Managers’ Indices (PMI).

India’s Economic Slowdown in January 2025 Key Insights from HSBC Flash PMI Economic Activity

India’s private sector growth eased to a 14-month low in January 2025 according to the HSBC Flash Purchasing Managers Indices PMI. The composite PMI decreased to 579 from Decembers 592 which suggests slower private sector activity growth Manufacturing Sector.

Key Highlights:

• Better Activity
  • Factory PMI rose to 580 its highest since July 2024 driven by new orders that expanded the most since March 2024.
• Ease of Cost Pressures
  • Input cost inflation for factories eased to a 10month low cushioning profit margins.
• Boost in Confidence
  • The degree of manufacturers optimism improved the strongest since May 2024.

 Services Sector

• Sharp Slowdown
  • Services PMI declined to 568 from 593 in December the slowest growth since November 2023 .
• Cost Pressures Increase
  • Services companies witnessed an 18month high for cost inflation from higher costs in labor raw material and other essentials.
• Optimism Dropped
  • Business optimism of service industry declined to a three month low mainly due to a low domestic demand.

Trends Across Sectors

• Global sales are rebounding Export growth was strong the fastest in six months for both goods and services.
• Capacity pressures building Outstanding business volumes grew at their fastest in 25 years suggesting growing pressure on production capacities.
• Cost Trend Diverging: Manufacturing was suffering from ease in cost pressure but services companies struggled with rising input costs.

Sectors of Indian Economy

2. Inoperative Accounts under Pradhan Mantri Jan Dhan Yojana (PMJDY)

Context:

More than one in every five accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) had turned inoperative by December 2024, despite the finance ministry’s push to make them operational by fast-tracking the verification process, according to a government official. This translates into about 110 million inoperative accounts.

What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?

Inoperative Accounts under Pradhan Mantri Jan Dhan Yojana PMJDY

• Current Figures
  • As of December 2024 around 21 percentage of PMJDY accounts or over 110 million accounts were reported to be inoperative.
• What is Inoperative Account?
  • The definition of an inoperative account is when there are no transactions from customers for 24 months on a consecutive basis.
• Top Banks with Inoperative Accounts
  • Bank of Baroda has the highest number of inoperative accounts that is 29 million accounts.
  • Punjab National Bank accounts hit 20 million inoperative accounts.
  • State Bank of India and Bank of India hold a total of 18 million, and 126 million accounts that are inoperative.

Reasons for the inoperative account

• Largescale opening of accounts made many of them regular saving accounts.
• Lack of awareness
  • The account holders do not know about the benefits of PMJDY due to which accounts are underutilized.
• Withdrawing
  • Withdrawing the amount just after receiving the DBT. Just after the recipients get the DBT, the money is withdrawn, and the account becomes dormant.

Government and Bank Efforts

• The ministry of finance had sought the action from the PSBs to activate the dormant account in a move to improve financial inclusion.
• In August 2024, total deposits in PMJDY accounts stood at 231 trillion with an average balance of 4352 per account .
• Banks have also done well in opening new accounts under PMJDY with UCO Bank exceeding its FY25 target by 110.
• ReKYC Initiative
  • In November 2024, M Nagaraju Secretary of the Department of Financial Services initiated a reKYC process for PMJDY account holders.
  • ReKYC will use fingerprints facial recognition, and declarations to make the accounts valid forever.
  • Banks were asked to repeat the success story of PMJDY launch and to make the reKYC process hassle free.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

3. India’s Digital Economy

Context:

The Indian Council for Research on International Economic Relations (ICRIER) in association with the Ministry of Electronics and Information Technology has published a report that estimates India’s digital economy will account for nearly 20 of GDP by 2030. This is the first official attempt to estimate the size of the digital economy in India.

Background

• Indias swift digital transformation is being spurred by
  • Improvements in ICT infrastructure
  • Growing internet penetration
  • A digitalfirst approach across banking education and services

This new transformation puts the digital economy firmly at the top of the drivers of national growth

Important Takeaways

Growth Projections of the Digital Economy

• 2022–23: Digital economy constituted 11.74% of national income.
• 2024–25: Projected to grow to 13.42% of GDP.
• 2030: Digital economy expected to account for nearly 20% of GDP.
• Growth rate: Expected to expand twice as fast as the overall economy.

• Estimation Framework
  • The report adopts a definition combining OECD and ADB and incorporates the share of the digital sector in traditional industries such as BFSI trade and education. Traditional (ICT) continues to be the largest sector of the digital economy.
• Sectoral Coverage
  • Focuses on digitally enabled services across diverse sectors like financial services education trade and traditional IT and ICT services.

Significance of the Study

• First attempt to comprehensively quantify the digital economys size in India.
• Highlights India’s transition towards becoming a digitally driven economy, impacting both domestic policy and international economic strategies.

Implications of the Report

• Economic Boost
  • It does so by firmly establishing the digital economy as a big contributor to GDP growth thereby readying India for a technology led transformation.
• Policy Framing
  • Sets a data driven framework for action for the government to focus on investments and incentives for an expansion of the digital ecosystem.
• Global Competitiveness
  • Reaffirms India’s status as a global hub for digital innovation thus creating greater opportunities for foreign investment in ICT and related sectors.

The report by ICRIER depicts how the digital economy is playing a critical role in India’s growth story. According to growth projections India will have intensified digital inclusion policy reforms and infrastructure development placing the country under an immense digital advantage by 2030.

Agriculture

1. Mushroom Market in India

India’s Market Growth

The edible mushroom market in India experienced tremendous growth in 2024 with an estimated market size of 347 billion by 2025. This is due to the growing demand for mushrooms as a nutritious superfood especially varieties such as oyster shiitake lions mane and button mushrooms.

• Largest Producer
  • Bihar is the largest producer of mushrooms in India.

Health Benefits of Mushrooms and Environmental Sustainability of Mushrooms

• Nutritional Potential
  • Full of Vitamins and Minerals: Rich in powerful Antioxidants including polyphenolic compounds proteins and even essential fatty acids. Very low calories and fat in support of healthy weight management and mushroomsupportive immune systems.
• Environmentally Friendly and Sustainable
  • Mushroom farming is environmentally friendly as it uses less land and water compared to traditional farming.
  • Mushrooms can be farmed on agricultural waste reducing environmental waste and promoting sustainability.
  • The farming process produces fewer greenhouse gases than livestock farming and supports global initiatives on climate change.

Policy Support and Government Initiatives

• Government Support
  • In 2025, India launched a subsidy scheme that provides up to 50 subsidies to mushroom growers to promote the use of sustainable agriculture practices.
  • Training schemes have been initiated to teach the farmers about sustainable agriculture methods and spawn culture.
  • This has resulted in increased yields and better quality mushrooms besides creating employment avenues in rural areas.

Technological Advancements in Mushroom Cultivation

• Technical Development
  • The mushroom industry is experiencing revolution through automated cultivation systems refined spawn production and precision farming.
  • Other technological inputs like germination chambers and autoclaves facilitate the development of sterile environments which can then avoid diseases and result in healthier crops.

Economic and Ecological Import of Mushrooms

• Supporting Sustainable Practices
  • The edible mushroom industry is extremely important in terms of promoting sustainable agriculture, providing economic opportunities, while reducing negative impacts on the environment.
  • As the sector grows its influence over commodity markets in India will also grow offering indications of future sustainable farming.
• Economic Contributions
  • The mushroom industry shall witness more government support technological advancements and increasing consumer demand thus augmenting the same considerably to the economy of India.

2. Soil Health Card Scheme

Origin

• Soil Health Card Scheme was launched by Prime Minister Shri Narendra Modi on 19.02. 2015 at Suratgarh, Rajasthan. The scheme has been introduced to assist State Governments to issue soil health cards to all farmers in the country.

About

• The Soil Health Card Scheme is an initiative by the Government of India to improve soil health, ensure sustainable agricultural practices, and enhance farm productivity.
• Launched in 2015 by the Ministry of Agriculture and Farmers Welfare, this scheme aims to provide farmers with valuable information regarding the nutrient content and quality of their soil, enabling them to make informed decisions about fertilization and crop management.
• By doing so, it helps farmers to reduce the cost of cultivation, increase productivity, and achieve better returns while maintaining soil health.

Objective of the Scheme

• Assess soil quality:
  • Provide farmers with soil health information for better soil management.
• Promote soil health:
  • Encourage the use of organic fertilizers and other natural methods to restore and improve soil fertility.
• Reduce dependency on chemical fertilizers:
  • By guiding farmers on the right amount of fertilizers required, the scheme helps reduce the overuse of chemical fertilizers and their harmful impact on the environment.
• Increase agricultural productivity:
  • By ensuring that crops get the right nutrients, the scheme aims to increase farm output.

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Facts To Remember

1. Jitendra Pal Singh named India’s Ambassador to Israel

India has named Jitendra Pal Singh currently the point-person for Iran and Pakistan as well as the Special Envoy to Afghanistan as its next Ambassador to Israel.

2. Study finds link between smartphone use and mental health of adolescents

A survey of over 10,000 adolescents (13-17 years) in the United States and India has revealed that mental well-being is closely linked with earlier age of initiation of mobile phones, and could decline significantly with each younger year of age.

3. Saudi Arabia taps Hans Zimmer to rework its national anthem

Saudi Arabia has enlisted Oscar-winning composer Hans Zimmer to rework its national anthem as part of an image overhaul. Mr. Zimmer has agreed to the project’s broad outlines, which include using different instruments. Discussions also covered a musical titled “Arabia” and the soundtrack for an upcoming film.

4. World’s largest data centre may come up in Jamnagar

Mukesh Ambani’s Reliance Group is building what may become the world’s biggest data centre by capacity in India, the latest in a blitz of global investments to capitalise on booming demand for artificial intelligence services.

5. Liquor Ban on MP

The Madhya Pradesh government announced its plan to ban the sale of liquor in 17 “religious” cities, a precursor to total prohibition in the state. The decision was taken at a Cabinet meeting chaired by Chief Minister Mohan Yadav.

6. MUDA Scam

Trouble brewing for Karnataka Chief Minister Siddaramaiah after Karnataka Governor Thaawarchand Gehlot, decided to sanction his prosecution in the alleged Mysuru Urban Development Authority (MUDA) ‘scam,’ according to the Raj Bhavan sources.

7. Renaming Controversy of India Built Cultural Centre in Sri Lanka

The Jaffna Cultural Centre built with a 12 million grant from India was inaugurated in 2023 intended to foster cultural exchange between India and Sri Lanka particularly for the Tamil community.
The facility located near the iconic Jaffna Public Library includes a 600seat auditorium conference hall amphitheatre and digital library.

8. More than 360 Vibrant Villages will have 4G connectivity by June, 2025: Amit Shah

Union Home Minister Amit Shah said that more than 360 Vibrant Villages will have 4G connectivity by June this year. 

9. Textiles Minister Giriraj Singh to inaugurate Handloom Conclave ‘Manthan’ on January 28

Union Textiles Minister Giriraj Singh will inaugurate the Handloom Conclave ‘Manthan’ in New Delhi on the 28th of January

10. Pete Hegseth appointed as next U.S. Defence Secretary

In USA, the Senate has confirmed appointment of Pete Hegseth as the next U.S. Defence Secretary.

11. Iniyan Panneerselvam clinches Johor International Open chess tournament title

Indian Grandmaster Iniyan Panneerselvam has clinched the 9th Johor International Open chess tournament title in Malaysia with a dominating performance.

12. National Voters’ Day being celebrated across the country

The 15th National Voters’ Day is being celebrated across the country on Saturday.

Prime Minister Narendra Modi wished the people on National Voters’ Day.