Current Affairs 8 January 2025

Daily Current Affairs Quiz
8 January, 2025

International Affairs

1. Earthquake

Context:

A devastating 7.1 Scale earthquake hits China’s remote area of Tibet, 75km from Everest region. It resulted in killing of at least 126 people.

Earthquake and Causes

• Earthquakes are natural occurrences due to the unleashing of energy, which radiates seismic waves in all directions.
• Epicentre
  • The point on the earth’s surface where the effects of a sudden movement (earthquake) are felt most strongly
• Fault Zones:
  • Energy is released along a sharp break in the crustal rocks, thus causing the blocks to move apart and slide past each other.
• Tectonic Earthquakes:
  • The most common type of earthquake, these tectonic earthquakes occur because tectonic plates are in constant motion. This causes tension on Earth’s crust.
• Volcanic Earthquakes:
  • These are caused by stress changes in solid rock due to the injection or withdrawal of magma, which causes land to subside and produces large ground cracks.
• Human Induced Earthquakes:
  • These can occur in areas of intense mining activity, ground shaking may occur due to the explosion of chemical or nuclear devices, or in areas of large reservoirs.
• India
  • India has been divided into four seismic zones (II, III, IV, and V) based on scientific inputs relating to seismicity, earthquakes occurred in the past and tectonic setup of the region.

• Distribution of Earthquakes
  • Earthquakes can hit any place anytime but repeat in the same general patterns every year.
  • The circum-Pacific seismic belt, the Alpide earthquake belt, and the mid-Atlantic Ridge are the three large zones of the earth.
• Measurement of Earthquakes
  • The energy from an earthquake travels through Earth in vibrations called seismic waves.
• Seismometers
  • Seismometers detect seismic waves below the instrument and record them as a series of zig-zags.
  • The earthquake events are scaled either according to the magnitude or intensity of the shock.

• Seismic Waves
  • Earthquake waves are the waves of energy caused by earthquakes or an explosion.
  • They are divided into body waves (P-waves) and surface waves (S-waves).

• Effects of Earthquake
  • Earthquakes are a natural hazard, causing heavy damage to life and property.
  • Direct hazardous effects include ground shaking, differential ground settlement, land and mudslides, fires, ground lurching, avalanches, ground displacement, floods from dam and levee failures, structural collapse, and tsunamis.

2. Undersea Domain Awareness

Context:

India and the US agreed to co-produce sonobuoys in the U.S. for Undersea Domain Awareness for the Indian Navy.

Underwater Domain Awareness (UDA)

Underwater Domain Awareness (UDA) is a maritime aspect that encompasses the underwater sector, including security, sea lines of communication, coastal waters, and maritime assets. It is motivated by military requirements and geophysical activities relating to human well-being, because monitoring these activities can help to minimize the effects of natural disasters and protect the environment.

Key Highlights:

• Sonobuoys
  • Sonobuoys track submarines deep within seas and oceans. It’s part of the series of measures undertaken by the countries to contain the rapid expansion by China in the Indian Ocean Region.
    • The Indian Ocean is the third-largest ocean in the world, covering about 20% of the Earth’s surface. It’s bordered by Asia to the north, Africa to the west, and Australia to the east. 

• Manufacture
  • Ultra Maritime and Bharat Dynamics Limited (BDL) will jointly manufacture and supply sonobuoys for the Indian Navy based on U.S. Navy standards.
• Sea Guardian Aircraft
  • P-8, MH-60R, and MQ-9B are Sea Guardian aircraft.

3. Indonesia Joins Brics

BRICS

National Affairs

1. Pravasi Bharatiya Divas

Context:

Over 3,000 delegates from across 70 countries have arrived in Odisha ahead of 18th Pravasi Bharatiya Divas.

Pravasi Bharatiya Divas

Pravasi Bharatiya Divas or Overseas Indian Day is an official celebration in India since 2003, marking the Overseas Indian contributions to the nation’s development as well as on the occasion when Mahatma Gandhi returned to Mumbai from South Africa in 1915.

• Date
  • 08 January, 2024.
• Place
  • Odisha’s Bhubaneswar.

2. Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022

Context:

High Court of Karnataka has struck down the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, which were framed for promoting generation, purchase, and consumption of green energy.

Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022

The Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 were notified by the Ministry of Power (MoP) on June 6, 2022. The rules aim to promote the use of green energy, including energy from waste-to-energy plants, and to reduce emissions. The rules are intended to: 

• Aim
  • The rules are intended to help India achieve its goal of reducing emissions by 45% by 2030. 
  • To reach the goal of net-zero emission by 2070
• Make green energy affordable
  • The rules are set to ensure that green energy is affordable, reliable, and sustainable for all. 
• Enable open access
  • The rules allow consumers with a connected load of 100 kW to access renewable energy through open access. 
• Green Open Access Registry
  • The Green Open Access Registry is a platform for managing open access transactions. 
• Provide automated workflows
  • The Green Open Access Registry provides automated workflows to speed up transactions. 

The most recent amendment was the Electricity (Promoting Renewable Energy Through Green Energy Open Access) (Second Amendment) Rules, 2023.

3. University Grants Commission’s Change in Higher Education in India

The University Grants Commission (UGC) has made several changes to higher education in India, including: 

• Draft UGC regulations 2024
  • These regulations primarily aims to make higher education more flexible, inclusive, and multidisciplinary. 
  • They include removing disciplinary rigidity and providing more opportunities for students to learn across disciplines. 
• Biannual admissions
  • Starting with the 2024-25 academic session, higher education institutions (HEIs) will be allowed to admit students twice a year, in July-August and January-February. 
  • This is intended to align Indian universities with international practices and give students some more flexibility. 
• Holistic and multidisciplinary education
  • This policy encourages students to choose courses and their pathways from a variety of disciplines. The primary goal is to help students develop 21st century skills and competencies, such as critical thinking, problem solving, and communication. 
• Draft FHEI Regulations
  • These regulations will cover the way for foreign higher educational institutions (FHEIs) to set up campuses in India. 

Pros and Cons

• Job Acquisition
  • The accelerated degree program is good for getting into the job quickly or getting early professional work experience.
• Diversifying Education
  • The extended degree program enables the student to get experience in a wide range of subjects, being able to take an internship, research projects, travel, and build new skills.

National Education Policy 2020 (NEP 2020)

4. Bharatpol

Context:

Bharatpol and systems introduced under the three new criminal laws will empower Indian law enforcement agencies to “bring fugitives to justice”, Union home minister Amit Shah said.

Bharatpol Portal

5. Impeachment Of Judges

Context:

The Allahabad High Court on Tuesday dismissed a public interest litigation (PIL) petition against the impeachment motion submitted in the Upper House of Parliament over the communal speech delivered.

Impeachment of High Court Judge

Appointment of Judges

6. Tokenisation in Digital Personal Data Protection Rules

Context:

The child verification system proposed in the draft Digital Personal Data Protection Rules to ensure that minors do not use social media platforms or age-restricted online services without parental consent has been formulated in consultation with the tech industry, Union Electronics and Information Technology Minister.

Tokenisation in Online Identity Verification

• Features
  • Tokenisation provides digital representations of data without revealing the data fully.
• ID Tokens
  • Online sites can accept ID tokens to prove user identity without accessing full identity documents.
  • Tokens can be deleted after their purpose is fulfilled.

Breach of Right to Privacy?

7. AI Governance in India

Context:

The Union government panel, group, or home for the set AI framework has suggested forming an inter-ministerial committee of the government which will emphasize putting AI legislation into practice and governing the emerging environment of AI.

Key recommendations

• Formation of Inter-Ministerial Committee:
  • Duly constituted specialised committee to examine the AI-related legislation and government
• Establish a Technical Secretariat for IT ministry:
  • A place for gathering diversified expertise and considering the risks inherent in the advent and implementation of AI.
• IndiaAI Mission Action Plan:
  • The report marks a major step in the IndiaAI Mission, providing a comprehensive action plan for AI development in the country.
    • The report encapsulates the government’s approach and vision for AI in India.

Core Principles of AI Governance:

• Transparency:
  • Ensuring that the operations of AI systems are well understood and accessible.
• Accountability:
  • Holding responsible entities accountable for the design, deployment, and use of AI systems.
• Safety:
  • Focusing on secure and risk-free AI applications.
• Privacy:
  • Protecting personal data and user privacy in AI systems.
• Fairness:
  • Ensuring that AI applications are unbiased, equitable, and do not discriminate.
• Human-Centered Values:
  • Promoting AI solutions that promote human well-being and ethical use.
• Inclusive and Sustainable Innovation:
  • Promoting AI that benefits all societal sections and fosters long-term sustainability.
• “Digital by Design” Governance:
  • Designing AI systems and policies digitally.

IndiaAI Mission

8. Thorium Based Fuel

Context:

Nuclear power has been in the news with NTPC announcing a partnership with the US based Clean Core Thorium Energy (CCTE) to develop thorium based fuel for use in nuclear reactors.

Thorium

Thorium is slightly radioactive metal that can be used to create nuclear fuel. It is available more than uranium and can be used in most reactor types. Thorium fuel has some advantages over uranium, including: 

• Fissile material breeding: 
  • Thorium can generate more fissile material (uranium-233) than it consumes. 
• Environmental friendliness: 
  • Thorium-fueled reactors produce less long-lived nuclear waste than uranium-fueled reactors. 
• Diversification: 
  • Thorium can be used as a diversification option for nuclear fuel supply. 
• Largest Producer in India
  • Kerala is India’s largest producer of thorium.
• Thorium reserves in India: 
  • India has a thorium reserve of 11.93 million tonnes, with Kerala and Odisha contributing over 70% of the country’s total. 

Thorium as Fuel

• Risks
  • Thorium is a radioactive material that means risk, such as contamination by radiation exposure. 
• Cost
  • The cost of fabrication and reprocessing thorium is higher than using traditional solid fuel rods. 
• Testing
  • Significant and expensive testing, analysis, and licensing work would be required. 
• Applicability
  • Thorium has relatively low applicability in non-nuclear power generation settings. 

Some Important Nuclear Power Plants in India

Nuclear Power Corporation of India (NPCIL)

9. Microsoft to invest $3 bn in India!

Context:

Microsoft Chief Executive Satya Nadella announced with an investment of $3 billion that will expand capabilities in cloud computing and artificial intelligence.

Cloud Computing

Cloud computing is the delivery of computing resources, like storage, servers, databases, and software, over the internet. It allows users to access these resources on-demand, without need to purchase and maintain their own physical infrastructure. 

Example and Application

• Email: 
  • Users can access email services through cloud computing. 
• File storage and sharing: 
  • Users can store and share files using cloud computing. 
• Accounting: 
  • Businesses can use cloud-based accounting applications to handle their finances, such as billing, expenditure tracking, and financial reporting. 
• Art-related applications: 
  • Users can use cloud computing applications for designing cards, books, and other visuals. 

10. Beta-blockers can Lead to Hypokalaemia!

Context:

Beta-blockers, drugs prescribed commonly to people suffering from irregular heartbeat and hypertension among other ailments, can lead to dangerously low potassium levels or hypokalaemia, the Indian Pharmacopoeia Commission (IPC) has warned.

Beta-blockers

Beta blockers, also known as beta-adrenergic blocking agents, are a class of drugs that slow the heart rate and lower blood pressure.

• How they work
  • Beta blockers block the action of hormones like adrenaline and noradrenaline, which can cause the heart to beat faster and harder. This slows the heart rate and reduces the force of blood being pumped around the body. Some beta blockers also relax blood vessels. 
• Uses
  • Beta blockers are used to treat a variety of conditions, including:
    • High blood pressure 
    • Chest pain (angina) 
    • Abnormal heart rate (arrhythmia) 
    • Congestive heart failure 

Hypokalaemia

Hypokalaemia, or low potassium, is a condition where there are lower than normal levels of potassium in the blood. Potassium is an electrolyte that helps carry electrical signals to cells in the body, and it is essential for the proper functioning of nerve and muscle cells. 

• Cause
  • Excessive loss of potassium in the digestive tract from vomiting, diarrhea, or laxative use. 

Banking/Finance

1. National Statistics Office (NSO)

Context:

According to projections from the National Statistics Office (NSO), India’s real GDP is likely to grow by between 6.4 and 8.2 percent during the financial year 2024-25.

The National Statistical Office (NSO)

The National Statistical Office (NSO) is the nodal agency for statistical activities in India. The NSO was formed by merging the National Sample Survey Office (NSSO) and the Central Statistical Office (CSO). The NSSO was established in 1950 to conduct large-scale sample surveys across India. 

• Ministry
  • Ministry of Statistics and Program Implementation (MoSPI)
• Chairman
  • Prof. Rajeeva Laxman Karandikar

It is responsible for many functions, including: 

• Statistical system development
  • The NSO is responsible for the planned development of the India’s statistical system.
• Statistical coordination
  • The NSO coordinates statistical work for the Government of India’s Ministries and Departments, as well as State Statistical Bureaus (SSBs).
• Statistical advice
  • The NSO advises the Government of India’s Ministries and Departments on statistical methodology and data analysis.

Comparing GVA and GDP

2. FinTech

Context:

In a meeting of finance ministry, the financial technology (fintech) sector raised concerns about insufficient funding opportunities amid regulatory fears and negative sentiment surrounding the industry, according to sources present.

Fintech In India

Fintech Repository

3. National Investment and Infrastructure Fund Trustee Ltd (NIIFTL)

Context:

The government has nominated State Bank of India Chairman CS Setty and Uday Kotak, founder and director, Kotak Mahindra Bank, as governing council members of the National Investment and Infrastructure Fund Trustee Ltd (NIIFTL).

National Investment and Infrastructure Fund Trustee Ltd (NIIFTL)

The National Investment and Infrastructure Fund Limited, is an Indian public sector entity, manages infrastructure investment on behalf of domestic and foreign investors to fund India’s development across key sectors.

• Founded
  • February 2015
• Headquarter
  • Mumbai
• CEO & MD
  • Sanjiv Aggarwal

What is Public Sector & Private Sector?

The public sector is the part of the economy that is owned and managed by the government, while the private sector is the part of the economy that is owned and operated by private individuals or groups.

4. Cooperative Banks

Context:

The Reserve Bank of India (RBI) has released drafts for revised formats of the financial statements, the balance sheet and profit and loss account, for cooperative banks to enhance norms governing regulated entities. These forms were notified in 1981.

Cooperative Banks

Cooperative banks are financial institutions that are owned and operated by their members, who are also the bank’s customers. They are based on the principles of: 

• Equal Rights: 
  • Each member has equal voting rights, regardless of how many shares they hold 
• No profit, no loss: 
  • Cooperative banks operate on this principle 
• Cooperation: 
  • Cooperative banks promote cooperation as well as mutual aid 
• Democratic decision-making: 
  • Members elect a board of directors to oversee the bank’s operations.

Features

• Cooperative banks provide services such as: Savings and loans, Microfinance, Financial education, Cultural sponsorship, and Socially Responsible Investment (SRI) products. 

Examples

• The Jharkhand State Co-operative Bank Ltd, The Uttar Pradesh State Co-operative Bank Ltd, The Kerala State Co-operative Bank Ltd.

 Financial Regulatory Bodies in India

• Insurance Regulatory and Development Authority of India (IRDAI): 
  • Regulates and licenses the insurance and re-insurance industries 
• Reserve Bank of India (RBI): 
  • Supervises banks and promotes healthy banking systems 
• Securities and Exchange Board of India (SEBI): 
  • Oversees the securities market and ensures investor protection 
• Financial Stability and Development Council (FSDC): 
  • Coordinates the functioning of various financial regulatory bodies 
• Ministry of Corporate Affairs (MCA): 
  • Sets up rules and regulations for the corporate sector 

5. Capital Expenditure (capex)

Context:

Despite the Centre’s efforts, public capex in the April–November period of FY25 has declined by over 12 per cent year-on-year.

Capital Expenditure

Capital expenditure, or CapEx, is the money that a company spends to acquire, maintain, or improve its long-term assets. These assets are typically fixed assets, such as buildings, land, equipment, or vehicles. 

• Fixed Assests
  • Assets which are not movable.

Capex vs Opex

CapEx is different from operating expenses, which are expensed immediately through the income statement. CapEx is capitalized and held on the balance sheet because it’s considered an investment in the company’s future operations. 

• Importance
  • CapEx is important for companies that want to grow and maintain their businesses. It can help with long-term financial sustainability by supporting growth initiatives and minimizing the financial risks. 

• Examples
  • Office buildings
  • Land
  • Equipment and machinery
  • Computers
  • Furniture
  • Vehicles
  • Acquisition of another company
• How it’s calculated
  • The formula for calculating CapEx is to subtract the beginning PP&E balance from the ending PP&E balance, and then add depreciation. 
• How it appears on the balance sheet
  • CapEx flows from the cash flow statement to the balance sheet. Once capitalized, the value of the asset is slowly reduced over time through depreciation expense

Capital Expenditure CapEx

6. Non-Performing assets (NPAs)

Context:

Increase in bad assets will impact banks’ profitability in FY26, India Ratings and Research (Ind-Ra) said.

Non-Performing assets (NPAs)

Bad assets, also known as nonperforming assets (NPAs), are assets that have lost most or all of their value: 

• Definition
  • An asset is considered bad when it has lost most or all of its value. In banking, a nonperforming asset is a loan or debt instrument where the borrower has defaulted on payments. 
• Examples
  • Term loans, overdraft and cash credit accounts, and agricultural advances are all examples of nonperforming assets. 

Gross Non-Performing Assets (GNPA)

7. SBICAPS

Context:

The economic outlook for calendar year 2025 remains cautious, with many of the risks from the last year expected to escalate, leading to heightened volatility, according to SBICAPS.

SBICAPS

SBICAPS, or SBI Capital Markets Limited, is an investment bank and project advisor in India that offers a wide range of financial services: 

• Investment banking
  • It includes services like loan syndication, structured debt placement, and IPOs 
• Corporate advisory
  • Includes services like mergers and acquisitions, private equity, and restructuring advisory 
• Project advisory
  • SBICAPS is a global leader in this area and has supported India’s infrastructure sector 
• Research
  • SBICAPS publishes research reports and daily digests 
• Established
  • 1986

SBICAPS is a subsidiary of the State Bank of India (SBI), India’s largest commercial bank. It was incorporated in 1986 and is registered with SEBI.

Economy

1. The Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Context:

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides one years personal accident insurance to those aged 18 to 70 years, with a cumulative enrollment of 475.9 million.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an insurance policy that provides financial assistance in case of accidental death or disability due to:   

• Launch Date
  • 9^th May, 2015
• Department
  • Department of Financial Services.
• Features
  • Under this scheme, the nominee gets Rs 2 lakh in case of death in an accident.   
  • In case of partial or incomplete disability, Rs 1 lakh is given.   
• Premium
  • The annual premium for this scheme is Rs 20.   
• Age Eligibilty
  • This scheme is for people between 18 to 70 years of age who have a bank account.   
• Benefit Through
  • The benefit of this scheme can be availed only through a savings account.  

2. MUDRA Scheme

Context:

The MUDRA scheme has approved an amount of ₹31.28 trillion for 503.1 million accounts.

MUDRA Scheme

• Launched in 2015 by the Indian Government, PMMY provides affordable credit to micro and small enterprises.
• Ministry
  • Ministry Of Finance 
• Aims
  • The scheme aims at integrating underserved enterprises into the formal financial system.
• Loan
  • Loan details include loans up to ₹10 lakh for non-farm income-generating activities.
• Eligibility
  • Eligibility for loans is open to any Indian citizen with a viable business plan.
  • Shishu (upto ₹50,000), Kishore (₹50,000 to ₹5 lakh), and Tarun (£5 lakh to ₹10 lakh).
• Subsidy
  • There is no direct subsidy available under PMMY, but can be eligible if linked with any Government scheme which provides capital subsidy.
• MUDRA 1.0
  • MUDRA 1.0 sanctioned over Rs 27.75 lakh crores to 47 crores of new and small entrepreneurs.
  • Nearly 69% of MUDRA loan accounts are female account holders, and 51% are SC/ST and OBC entrepreneurs.
  • It has provided employment opportunities, mainly in rural and semi-urban regions.

Vision for MUDRA 2.0

• Extended outreach:
  • Enhance reach, comprehensive services, launch country-wide financial literacy initiatives, incorporate an ECGS, robust RMEF, and impact assessments with a positive spin.

3. India’s Economic Growth Outlook 2024-25

Context:

The National Statistics Office (NSO) released the First Advance Estimates (FAE) for India’s national income for the financial year 2024-25, forecasting a 6.4% growth rate.

Key Highlights:

• This is a slowdown compared to the 8.2% growth in 2023-24 and the 6.6% growth projected by the Reserve Bank of India (RBI).
• The economy is estimated to have grown 9.7% in nominal terms from a year ago, having marginally improved over last year’s growth of 9.6%.

Impact on the Fiscal Management of the Government

• Nominal Growth
  • The nomination of under-expected nominal growth represents a challenge for the government’s fiscal management.
• Expenditure Reduction
  • The government may have to reduce expenditure to maintain the fiscal deficit at 4.9% of GDP for the current year.
  • Revenue collection issues are also flagged as tax revenues are coming in below estimates, which could raise questions over the revenue assumptions of the government.

Challenges to Growth in the Medium Term

• Adjustment in the fiscal plans:
  • The government has three months left of the ongoing financial year; also, despite the growth rate not coming back in the second half of the year.
• Medium-term growth trajectory:
  • For 2025-26 Union Budget, the big test is to formulate a proper plan as to guide the economy along a sustainable growth path with an envisaged higher growth trajectory.
• Government Capital Expenditure:
  • Current growth is largely led by higher government capital expenditure, which is budgeted at 3.4% of GDP for the current year.

Agriculture

1. India’s Ethanol Program

What is Ethanol?

Role of Ethanol in India

• Powers vehicles, aids the spirits industry, and cuts India’s imports of crude oil.
• Harmful emissions are reduced, air quality is improved, and ₹1.1 trillion has been saved in foreign exchange because of ethanol blending.
• In the last decade, from savings of 50 million carbon dioxide equivalent in a year, the increase in ethanol use has consistently been ahead of this target.
• New trade avenues to farmers would create a more even marketplace for their crops such as sugarcane.

Some of the challenges therein include:

• Feedstock and Supply Constraints:
  • Ethanol in India is produced mainly from sugarcane, which competes with food needs as well as government restrictions on sugarcane for ethanol production.
• Resistance from Automobile Industry:
  • There is resistance to flexi-fuel vehicles from the automobile industry due to Various technical and economic obstacles.
• Pricing Issues:
  • The pricing issue of ethanol still remains contentious and distillers have argued that ethanol prices be dynamically adjusted.
• Concern for Investors:
  • Uncertainty on ethanol supply as well as unstable pricing will definitely be a significant concern for the investors.
• Increased Ethanol Production:
  • The government has heavily invested in ethanol distilleries, which could amount to up to ₹35,000 crore by 2031 to meet the ethanol requirements.
• Government Support:
  • Continued support from the government through interest subvention schemes for loans and subsidies for ethanol manufacturers will be crucial to sustaining growth in the ethanol sector.
• Flexi-Fuel Vehicles:
  • It is essential to encourage the automotive sector to start flexi-fuel vehicle productions by offering tax breaks or subsidies.
    • Flexible fuel vehicles (FFVs) are cars that can run on gasoline or a blend of gasoline and ethanol.
• Sustainability Feedstock Supply:
  • To achieve sustainable ethanol production, India must consider second-generation feedstocks and enhance coordination among ministries dealing with biofuels, agriculture, and transportation.
• Market Dynamics:
  • Ethanol prices need to be more flexible in order to sustain the program for a long time in the future.

The Ethanol Blended Petrol (EBP) Programme

Road Map for Ethanol Production by Indian Sugar Mills Association

2. Farmer Producer Organizations (FPOs)

Introduction

FPO is an association of farmer members voluntarily controlled by themselves and open to everybody without gender, social, racial, political, or religious discrimination. It does not restrict education and training to its members and elected representatives but also extends to the managers and employees of FPOs.

Concept

• An FPO can be a Producer Company, a Cooperative Society or any other legal form.
• FPOs are basically the hybrids of cooperatives and private companies.
• The rationale behind the Farmer Producer Organizations (FPO) was that “Farmers, who are the producers of their agricultural products, can form the groups and can register themselves under the Indian Companies Act”.

• Farmers as Members
  • FPO is an organization, wherein the members are farmers itself.
• Facilities
  • Farmers Producers Organisation provides end-to-end support and services to small farmers with respect to technical services, marketing, processing, and others aspects of inputs related to cultivation.
• Schemes
  • The Government of India has sanctioned and launched the Central Sector Scheme of “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)” to form and promote 10,000 new FPOs till 2027-28 with a total budgetary outlay of Rs.6865 Cr.
• Small Farmers Agribusiness Consortium (SFAC)
  • Small Farmers Agribusiness Consortium (SFAC) was mandated by the Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India, to support the State Government in the formation of the Farmer Producer Organizations (FPOs).
• Aims
  • The aim is to enhance the competitiveness of farmers and raise their advantage while emerging market opportunities.
• Activities
  • The principal activities of Farmer Producer Organization include seed, machinery, market linkages & fertilizer, training, networking, financial and technical advisory services.

Key features of FPO

• Minimum Members
  • Initially, the minimum members in Farmer Producer Organization are 100 in North East & Hilly Areas and 300 in plain areas.
• The Cluster-Based Business Organizations form and promote the Farmers Producers Organizations and get them on boarded at the State or Cluster level by implementing the agencies.
• Farmer Producer Organization is promoted under “One District One Product” for FPO better branding, marketing, processing and exports by specialization.
• The CBBOs provide the initial training as well as adequate trainings & handholding for the Farmers Producer Organization.
• The formation of Farmer Producer Organization is given priority in aspirational districts with at least one FPO in each block of the aspirational districts.

Benefits of FPOs:

• Average land holding size:
  • FPOs may involve farmers in collective farming and solve the problem of small farm sizes.
• Bargaining with Corporates:
  • FPOs may help the farmers bargain with large corporate houses.
• Efficient Aggregation:
  • Dre FPOs may offer member farmers low-cost and quality inputs and save member farmers’ time, transaction costs, and all other costs associated.
• Social Impact:
  • FPOs can build social capital, improve gender relations and decision making, reduce social conflicts, and enhance food and nutritional values.
• Group Farming:
  • FPOs can extend their land holdings by bringing together adjacent plots of land, creating a supply chain, and creating new markets.
• Way Forward:
  • Not only do we need new FPOs in India, but also the structural issues have to be addressed in terms of technical skills, professional management, finances, access to credit, risk mitigation mechanisms, and markets and infrastructure.

Facts To Remember

1. V. Narayanan, spacecraft and rocket propulsion expert, appointed ISRO Chairman.

• Dr. Narayanan, who is currently the Director of Liquid Propulsion Systems Centre (LPSC), will be the new Chairman of the Indian Space Research Organisation (ISRO), and he will take over from S. Somanath on January 14.

2. French far-right politician Jean-Marie Le Pen dies at 96

• Jean-Marie Le Pen, the founder of France’s far-right National Front who was known for fiery rhetoric against immigration and multiculturalism that earned him both staunch supporters and widespread condemnation. He was 96.

3. Former Asian Games gold medallist Sagoo elected new AFI president

• Asian gold medallist shot-putter and Padma Shri Bahadur Singh Sagoo was elected as the new president of the Athletics Federation of India (AFI) on the opening day of its two-day Annual General Meeting here on Tuesday even as outgoing president Adille Sumariwalla announced new events and future plans for the federation.

4. SBI appoints Baldev Prakash group chief

• State Bank of India has appointed Baldev Prakash as the deputy managing director—group chief risk officer, the lender informed the exchanges. 

5. India-EU reiterate their commitment to promote & protect Human Rights

• India and the European Union reiterated their commitment to the shared principles and values of democracy, freedom, rule of law and to the promotion and protection of all Human Rights during 11th India – European Union Human Rights Dialogue in New Delhi 

6. Defence Minister Rajnath Singh holds talks with Maldivian counterpart to strengthen bilateral defence ties

• A bilateral meeting was held between Defence Minister Rajnath Singh and his counterpart of Maldives Mohammed Ghassan Maumoon in New Delhi 

7. 2 Indian-Americans elected to Virginia state legislatures in special elections

• In the US, two Indian-Americans, Kannan Srinivasan and J.J. Singh, were elected in special elections to Virginia’s state legislatures

8. “Janbhagidari se Jankalyan” is theme of GoI’s New Year calender

• Information and Broadcasting Minister Ashwini Vaishnaw today unveiled the Government of India Calendar for 2025 in New Delhi.