Daily Current Affairs (DCA) 16 April, 2025

Daily Current Affairs Quiz
16 April, 2025

International Affairs

1. Sudan Conflict 2023–2025

Background and Origins of the Conflict

• In April 2023, Sudan plunged into civil war due to a power struggle between two military factions:
  • General Abdel Fattah al-Burhan, chief of the Sudanese Armed Forces (SAF).
  • Mohamed Hamdan Dagalo, head of the paramilitary Rapid Support Forces (RSF).
• This followed years of political instability:
  • 2019: Popular uprising ousted long-time dictator Omar al-Bashir.
  • 2019–2021: Power-sharing between military and civilian leaders raised hopes for democratic transition.
  • October 2021: Gen. Burhan and Dagalo staged a coup, dissolving the transitional government.
  • Their alliance fractured, triggering full-scale conflict in 2023.

Devastating Humanitarian Impact

• Death toll: Over 150,000 people killed since the conflict began.
• Displacement crisis: Nearly 13 million displaced, the largest internal displacement globally.
• Urban warfare: Major cities, especially Khartoum, transformed into battlefields.
• Famine: Sudan now faces the world’s first officially declared famine in four years.
• Systemic collapse: Education, healthcare, water access, and food systems have nearly disintegrated.

Shifting Military Control

• Army (SAF):
  • Regained momentum after early setbacks.
  • Recently recaptured Khartoum and controls northern and eastern Sudan, including Port Sudan.
• RSF:
  • Maintains stronghold in western Darfur.
  • Currently besieging El Fasher, a strategic army base.
  • Declared a parallel government in RSF-held areas to legitimize control.

Atrocities and War Crimes

• RSF faces documented allegations of mass atrocities, including rape of children, looting, and targeted killings.
• Army is responsible for relentless air strikes, exacerbating civilian casualties and displacement.
• Both sides have contributed to the complete breakdown of civilian life.

International Complicity and Geopolitical Stakes

• Regional and global powers have prolonged the conflict:
  • UAE allegedly supports the RSF.
  • Russia, Türkiye, Iran, and Qatar are aligned with the army.
• International apathy and geopolitical opportunism have emboldened the warlords.

Path Forward: Ceasefire and Civilian Restoration

• A military victory is unlikely—the current situation reinforces the failure of force as a solution.
• Urgent global intervention is needed:
  • Immediate ceasefire.
  • Unhindered humanitarian access to war-affected regions.
  • Support for neutral peace talks, prioritizing civilian leadership and transitional justice.
• Sudan’s future depends on international pressure and a return to a civilian-led democratic roadmap.

Sudan’s civil war is not just a regional crisis—it is a global moral failure. The world must stop ignoring the tragedy unfolding in silence. Only coordinated diplomacy, humanitarian aid, and pressure for accountability can halt the collapse and offer hope to millions caught in the crossfire.

TH

National Affairs

1. India’s Net-Zero Transition

Electrification is Key to Net-Zero Economy

• Achieving a net-zero economy requires massive electrification of end uses of energy.
• Fossil fuels are used not just for power but also to provide heat and molecular inputs in industries:
  • Carbon (from coal) for reducing iron ore in steel production.
  • Hydrogen (from natural gas) for ammonia used in fertilizers.
• In a net-zero future, hydrogen must replace fossil-derived feedstocks, and electricity must power end uses.

Sharp Rise in Power Demand Expected

• India will face a steep increase in electricity demand to decarbonize its economy.
• Solar, wind, hydro alone are insufficient—nuclear power must be a key component.
• The Indian government has set a target of 100 GW of nuclear power capacity by 2047.

Expansion of Nuclear Capacity

• NPCIL’s PHWR programme:
  • Currently operational: 700 MW reactors in Gujarat and Rajasthan.
  • Upcoming projects in Haryana and others from a fleet of 20 new reactors.
  • Introduction of Bharat Small Reactors (BSRs) for captive use (220 MW).
• India has domestic manufacturing capability for all PHWR components.

Low-Carbon Electricity Mix and Grid Balancing Challenges

• Low-carbon sources (nuclear, solar, wind, hydro) will dominate India’s future energy mix.
• Nuclear = base load, solar/wind = intermittent, leading to balancing challenges.
• Presently, coal plants are flexed to manage variability—reduces emissions when solar/wind dominate.

Flexing Nuclear Is Technically and Economically Inefficient

• Flexing nuclear plants is costly and technically challenging:
  • High capital cost makes part-load operation uneconomical.
  • Load-following nuclear tech is under development, not yet scalable.

Hydrogen as a Demand-Shaping and Industrial Solution

• Use electrolysers to produce hydrogen during times of electricity surplus.
• Hydrogen is not reconverted to power but used directly in industry (steel, fertilizer, etc.).
• This approach:
  • Avoids flexing base load plants.
  • Reduces dependence on expensive electricity storage.
  • Improves system economics using existing, mature technologies.

Redefining Green Hydrogen: Include Nuclear as Low-Carbon Source

• Current definition: Green hydrogen = electrolysis using solar/wind.
• Proposal: Shift to low-carbon hydrogen taxonomy based on emissions threshold (e.g., ≤2 kg CO₂/kg H₂).
  • Nuclear hydrogen has comparable life-cycle emissions to renewables.
  • Enables nuclear inclusion in India’s hydrogen strategy.

Synergy Between Hydrogen and Energy Storage

• Hydrogen production and battery storage should be integrated, not siloed.
• Case studies show combined systems are more cost-effective than isolated ones.

Policy Recommendations

• Redefine “green hydrogen” to “low-carbon hydrogen” to include nuclear-based hydrogen.
• Integrate hydrogen production with electricity storage in policy and planning for economic efficiency and grid resilience.

TH

2. India and AI Governance

Global Context

• Over the past year, AI regulation has become a global policy priority.
• Many nations have shifted focus from social inclusion and ethics to innovation and economic advantage.
• Legally binding AI regulations exist in:
  • China, European Union, Canada, South Korea, Peru, and the U.S. (Note: U.S. President Trump has revoked President Biden’s AI Executive Order).
• Countries with draft AI legislation: U.K., Japan, Brazil, Costa Rica, Colombia, Pakistan.
• 85+ nations, including the African Union, have released national AI strategy documents outlining developmental and ethical goals.

India’s Current Approach to AI Policy

• India does not yet have a formal law or endorsed national AI strategy.
• The 2018 NITI Aayog report on AI remains unofficial and unfunded.
• The IndiaAI Mission aims to create a robust AI ecosystem through seven thematic pillars, including:
  • Foundational model development
  • Skilling
  • Innovation hubs
  • Data platforms
• An expert advisory group is drafting governance recommendations, but these remain non-binding.

Pros and Cons of India’s Flexible Approach

• Advantages:
  • Allows adaptability to evolving technologies and global trends.
  • Offers policy flexibility amid geopolitical and economic shifts.
• Disadvantages:
  • Absence of a clear roadmap undermines strategic direction.
  • No defined milestones, budget, accountability mechanisms, or enforcement structure.
  • Policies may become reactive or dependent on individual leadership agendas.

Urgent Need for Guardrails

• India’s AI adoption is rising swiftly, yet regulatory and ethical oversight remains weak.
• Most AI deployments in sectors like healthcare, finance, education, public administration lack:
  • Algorithmic transparency
  • Efficacy metrics
  • Evaluation protocols
• Voluntary compliance dominates, posing risks of:
  • Discrimination
  • Privacy breaches
  • Cybersecurity threats
  • Labour displacement
  • Social unrest from AI-generated misinformation

Global Lessons: Data Regulation as a Blueprint

• India’s Digital Personal Data Protection (DPDP) Act, 2023 takes a centralised, cross-sectoral approach, like:
  • EU’s GDPR
  • China’s PIPL
• The U.S. model is sector-specific and decentralised.
• China leads with specific laws for generative AI and deep synthesis.
• India could pursue a hybrid governance model, building on the DPDP Act to develop sectoral AI regulations.

The Case for an Official AI Policy

• An official AI policy (not legislation) is an actionable short-term goal.
• Benefits include:
  • Piloting enforcement mechanisms
  • Outlining India’s AI vision, implementation strategy, and ethical use cases
  • Designating responsible authorities
  • Identifying priority sectors for AI-driven growth

Initiating Public Discourse on AI Ethics and Impact

• The Indian government must lead public discussions on AI’s societal implications, including:
  • Bias and fairness
  • Labour market disruptions
  • Data provenance
  • Algorithmic accountability
• Ignoring these aspects may exacerbate existing inequalities and undermine citizen trust.

Policy Recommendations

• Draft and release a National AI Policy that details:
  • India’s vision and goals
  • Implementation frameworks
  • Ethical guardrails
  • Sector-specific opportunities and risks
• Foster public and stakeholder discourse on AI development, ensuring democratic oversight and inclusivity.
• Leverage lessons from global regulatory models while aligning with India’s socio-political and economic context.

TH

3. Kerala ASHA Workers’ Protest

Who are ASHAs and Why Are They Protesting?

• Accredited Social Health Activists (ASHAs) are trained community health workers, primarily women, who act as a bridge between the community and the public health system in India. They are selected from the community, reside in the same area, and are tasked with improving the health status of their community by promoting health awareness, facilitating access to services, and providing basic healthcare. 
• ASHAs (Accredited Social Health Activists) are a 26,125-strong workforce in Kerala under the National Health Mission (NHM).
• They have been on a day-night protest for over two months demanding:
  • Higher honorarium in line with Kerala’s minimum wage standards.
  • Retirement benefits and removal of restrictive payment criteria.=

Key Demands from ASHA Workers

• Honorarium increase to ₹21,000/month equivalent to Kerala’s daily minimum wage of ₹700.
• ₹5 lakh lump sum on retirement.
• Abolition of honorarium-linked performance criteria.
• Regularization of employment — shifting from “volunteer” status to formal workforce with fixed salary, pension, and social security.

The Government’s Position

• State’s Argument:
  • ASHAs are a Union government initiative, hence the Centre must lead structural reforms.
  • ₹636 crore pending from Centre under NHM for FY 2023-24 has impacted payments.
  • Despite this, the State removed criteria-linked conditions but cannot afford a pay hike due to fiscal constraints.
• Centre’s Stand:
  • Union Health Minister acknowledged the need for incentive revision in Parliament.
  • However, no timeline or clear policy commitment has been made yet.

Current Impasse and Political Undertones

• The State has criticized the Kerala ASHA Health Workers’ Association (KAHWA) for protesting at the Secretariat instead of the Raj Bhavan.
• The movement has been labelled “anti-government” by some State officials.
• In the latest negotiation, the State rejected KAHWA’s interim demand for a ₹3,000 hike, proposing instead to form a study committee.

Structural Challenges and Policy Gaps

• ASHA workers remain outside the ambit of formal labor protections despite being central to public health delivery.
• The ASHA scheme, launched in 2005, still views them as volunteers — denying them fair wages and career security.
• Their role has expanded significantly (especially post-COVID), but policy evolution has not kept pace with workload and expectations.

The Need for Structural Reform

The ongoing agitation by Kerala’s ASHA workers highlights a critical fault line in India’s public health system — where frontline workers are overburdened, underpaid, and under-recognized. Immediate resolution demands:

TH

4. India Justice Report (IJR) 2025

Context:

The 2025 India Justice Report (IJR) reveals that there are fewer than 1,000 women in senior positions among the 20.3 lakh personnel in the police force. The IJR 2025, initiated by Tata Trusts and supported by several civil society organisations and data partners, tracked the performance of States across four areas — Police, Judiciary, Prisons and Legal Aid.

State Performance Overview

• Top Performers: Karnataka, Andhra Pradesh, and Telangana lead the rankings, reflecting shifting dynamics in justice delivery.
  • Karnataka retained its top spot for the second consecutive year.
  • Andhra Pradesh moved up to second from fifth in the previous year, reflecting a notable improvement.
  • Telangana, which ranked 11th in 2019, maintained its third place.
• Other Observations:
  • Historically strong performers like Kerala and Tamil Nadu have shown minor fluctuations but remain stable in the top five.
  • Maharashtra declined from its previous top position, and Gujarat and Punjab exhibited inconsistent performances.
• Bottom-tier States: States like Bihar, Rajasthan, Jharkhand, Uttar Pradesh, and West Bengal have largely maintained their lower rankings with minor shifts, with Uttar Pradesh improving slightly.

Key Justice Delivery Capacity Indicators

Strengthening Structural Capacity

• Investments in Justice Infrastructure: The report highlights improved budget allocations across key justice delivery institutions, including:
  • Court infrastructure: Significant reduction in court hall deficits.
  • Technology Integration: Technology has helped fill critical gaps in case processing and police stations.
  • Prison Reforms: Targeted interventions such as expanded legal aid and the introduction of open prisons are helping decongest prisons and facilitate prisoner rehabilitation.
• Human Resources:
  • Judicial vacancies have reduced in some states, and the focus on forensic staffing has increased.
  • Gender diversity has improved within the lower judiciary and police.
  • However, the report highlights a severe shortage of judges, with only 15 judges per million population, significantly below the 50 judges per million recommendation by the 1987 Law Commission.

Workload Distribution and Gender Representation

Gender Representation in Justice Delivery

• Women in Justice Roles:
  • The percentage of women in judiciary roles increased from 30% in 2017 to 38.3% in 2025, particularly at the district judiciary level.
  • Women in the police: There has been a notable increase in women police officers, with 15 states/UTs reporting less than 10% women in police.
  • Legal Aid: The share of women paralegal volunteers increased from 36% in 2019 to 42% in 2024, contributing to enhanced legal accessibility for marginalized communities.
• Challenges in Gender Equality: Despite improvements, states like Uttar Pradesh and West Bengal still face gender imbalances in police and judiciary roles.

Judicial Delays and Backlog of Cases

Case Backlog & Delays in Judiciary

• High Courts: 1 in 2 cases pending for more than three years. Exceptions include states like Karnataka, Manipur, Meghalaya, Sikkim, and Tripura.
• District Courts: 40% of cases pending for over three years in states like Andaman & Nicobar, Arunachal Pradesh, Bihar, Goa, and Uttar Pradesh.

Key Issue: Case backlogs and delays in the judiciary remain a significant concern, particularly in district courts, where timely delivery of justice is crucial for social equity.

Critical Resource Shortages in Police and Prisons

Resource Gaps in Police and Prisons

• Police Staffing: There is 1 police personnel for every 831 people on average, highlighting significant staffing deficiencies.
• Prison Medical Facilities: Only 740 medical officers for over 573,220 prison inmates, and 25 psychologists available across all prisons.

Key Takeaways & Future Outlook

• The 2025 India Justice Report highlights both progress and persistent challenges. While some states have improved their justice delivery systems, issues like judge shortages, gender representation gaps, and case backlogs remain key challenges.
• The increased focus on infrastructure, gender diversity, and human resource capacity are positive trends, but they must be matched by institutional reforms and stronger policy initiatives to reduce the judicial backlog and improve access to justice for all citizens.
• Bottom-tier states, especially Uttar Pradesh and West Bengal, will need sustained governance and reform efforts to move up in the rankings.

BS

5. Rising Paediatric Tuberculosis (TB) Cases in India

Overview of Paediatric TB

Paediatric tuberculosis (TB) refers to tuberculosis infections in children. While TB is often thought of as an adult disease, it is a significant cause of illness and death in children, especially in areas with high TB burden. The disease can manifest in various ways, including pulmonary TB (affecting the lungs) and extrapulmonary TB (affecting other organs). 

• 38% Increase: The number of notified paediatric TB cases in India has risen by 38% over the past five years, from 102,090 cases in 2020 to 141,182 cases in 2024.
• Age Group Focus: This rise refers to children aged up to 14 years, as defined by the World Health Organization (WHO).

Contributing Factors to the Surge

• Malnutrition:
  • High rates of malnutrition are a key contributor to the increased vulnerability of children to TB. Undernourished children have weakened immune systems, making them more susceptible to infection.
• Impact of COVID-19:
  • Pandemic Effects: The COVID-19 pandemic indirectly contributed to the rise in TB cases due to weakened immune systems caused by widespread use of steroid treatments. This can reactivate latent TB infections, even in children who had been infected earlier.
• Drug-Resistant TB:
  • Multidrug-Resistant TB (MDR-TB) and Extremely Drug-Resistant TB (XDR-TB) cases have been increasingly noted among children. These strains complicate treatment and early diagnosis, exacerbating the burden of paediatric TB.
• Transmission from Adults:
  • Children are often infected through adult family members who carry the disease, contributing to a higher rate of transmission in households with active TB cases.
• Underreporting and Diagnostic Challenges:
  • Underreporting remains a critical issue, as the actual number of paediatric TB cases is likely higher than the reported figures. Difficulties in diagnosis such as challenges with sputum sample collection and the non-specific presentation of TB in children, particularly extrapulmonary TB, contribute to underreporting.
  • Extrapulmonary TB affects areas like lymph nodes and other organs, leading to delayed detection.

Challenges in Reporting and Diagnosis

• Paediatric TB’s Hidden Burden: According to WHO and India’s National TB Elimination Programme (NTEP) estimates, children under 15 account for 10-12% of India’s overall TB burden, translating to around 300,000–350,000 cases annually.
• Diagnostic Difficulties: While the NTEP reports that 5-7% of all TB cases annually are in children, the actual incidence of paediatric TB is expected to be higher. The gap between expected and reported cases can be attributed to:
  • Difficulties in sputum sample collection for young children.
  • Nonspecific symptoms in children, which often leads to delayed diagnosis, particularly in cases of extrapulmonary TB.

Current Government Actions and Strategy

• National Strategic Plan: The government is promoting early diagnosis and prompt treatment of TB in children under the National Strategic Plan for the Elimination of TB in India.
• The goal is to improve the availability of quality-assured TB drugs and regimens to ensure effective treatment for children suffering from TB.
• The focus is on enhancing surveillance and diagnostic capabilities to reduce the underreporting of cases.

Future Considerations

• Strengthening Diagnosis and Surveillance:
  • Addressing the diagnostic gap and ensuring timely detection will be critical in controlling the spread of paediatric TB.
  • Efforts to improve sputum collection methods and develop specific diagnostic tools for children are essential to enhance reporting accuracy.
• Nutritional and Healthcare Support:
  • Malnutrition is a significant risk factor for TB. Improving nutritional support for children, especially in underserved regions, is key to reducing TB vulnerability.
• Multidrug-Resistant TB:
  • The rising incidence of drug-resistant TB necessitates the development of specialized treatment regimens for children, alongside increased access to second-line TB drugs.

The increasing incidence of paediatric TB in India points to multiple interconnected factors, including malnutrition, the COVID-19 impact, and drug resistance. While diagnostic advancements have led to higher reported cases, there are still significant challenges in early detection and underreporting.

BS

6. Historic Olive Ridley Turtle

Context:

An Olive Ridley turtle, tagged 03233, has made history by becoming the first flipper-tagged turtle to cross both India’s coasts and two ocean basins. Her unique journey is offering valuable insights into turtle migration and marine ecosystems.

Key Highlights

• Tagging & Nesting: Tagging occurred in 2021 during mass nesting in Odisha, and in 2025, 03233 was found nesting on the Konkan coast, laying 120 eggs, which is higher than the average for the region (90-95 eggs).
• Scientific Importance: This marks the first recorded nesting at two beaches during the same period, challenging existing theories about turtle migration. The unexpected route taken by 03233 also points to the connection between marine ecosystems on different coasts.

Growth of Nesting on the West Coast

• Increased Nests in Maharashtra: In recent years, the number of Olive Ridley nests along India’s west coast has grown. Maharashtra now hosts about 20% of India’s Olive Ridley nests, with places like Guhagar seeing nearly 300 nests.
• Resident or Migrant? Researchers are investigating whether the turtles on the west coast are migrants like 03233, or if they are residents who stay in Arabian waters.

Conservation Efforts

• Tracking and Research: The journey of 03233 emphasizes the need for better tracking of Olive Ridley turtles. The Wildlife Institute of India (WII) is conducting a turtle census, and experts are urging for more flipper and satellite tagging to monitor their movements effectively.
• Coastal Protection: With turtles traveling long distances for breeding and feeding, it is crucial to protect their nesting sites, especially along Maharashtra’s coast, where human activities like construction and tourism threaten these habitats.

The migration and nesting of 03233 highlights the need for increased conservation efforts to protect Olive Ridley turtles. By understanding their movement patterns, we can better safeguard these remarkable creatures and their habitats for the future.

TOI

Science & Tech

1. The Mantis Shrimp

Context:

The mantis shrimp, a small 10-cm marine crustacean, is renowned for its extraordinary punching power. It strikes prey at 23 m/s using its dactyl club, generating shockwaves that can shatter hard shells and stun prey. Despite such force, the shrimp itself remains unharmed a biological mystery until now.

Phononic Shielding Mechanism

• Scientists from the US and France have discovered that the mantis shrimp’s club uses phononic shielding to absorb recoil.
• Published in Science (Feb 2024), the study used ultrafast laser pulses and numerical simulations to observe wave behavior in the club at sub-nanosecond timescales.

How It Works: Microstructure and Bandgaps

• The dactyl club’s microstructure acts as a phononic bandgap, preventing certain high-frequency stress waves from propagating.
• This wave manipulation reduces the backward force (recoil), protecting the shrimp’s body.

Club Design and Dual Impact Force

• The club stores energy in elastic structures and tendons, releasing it with explosive force.
• Each strike generates:
  • A direct mechanical blow
  • A secondary shockwave from collapsing vapor bubbles (cavitation) in water

Layered Armor: Hierarchical Material Design

• The club is made up of three protective layers:
  • Hydroxyapatite outer layer: distributes impact force
  • Impact layer & periodic region: reinforced with biopolymer fibers to endure repeated strikes
• This natural design resists damage while controlling shockwave propagation.

Laboratory Simulation of Natural Impact

• Researchers mimicked shrimp strikes using dual-pulse lasers to create and measure stress waves.
• They generated dispersion diagrams to identify the frequency bandgaps where energy was trapped or blocked.

Significance

• This study challenges the idea that metamaterials — materials engineered to control wave behavior — are only lab-made.
• The mantis shrimp’s club proves that nature evolved such structures organically.

Future Applications and Biomimicry

• Insights from this study could help develop:
  • Sound-filtering materials (e.g., ear protection for soldiers)
  • Blast-resistant gear for defense and sports
  • Energy-harnessing materials through wave trapping and conversion
• Researchers are now exploring biomimetic designs inspired by this natural engineering marvel.

The mantis shrimp is not just a marine marvel — it’s an evolutionary engineer. Its ability to both withstand and manipulate extreme forces could revolutionize how we think about impact-resistant materials, protective gear, and wave dynamics.

TH

Banking/Finance

1. SEBI Reviews Mutual Fund Regulations

Context:

The Securities and Exchange Board of India (SEBI) is conducting a comprehensive review of Regulation 24 under the Mutual Fund (MF) Regulations.

• This clause restricts Asset Management Companies (AMCs) from engaging in business activities that conflict with the interests of mutual fund schemes.

What is Clause 24?

• Prohibits AMCs from taking up activities that may create a conflict of interest with the management of mutual funds.
• Requires SEBI’s prior approval for AMCs to offer advisory or consultancy services to foreign funds.
• Imposes strict rules for maintaining separate bank and securities accounts and dedicated fund managers for each scheme.

Industry Feedback and Challenges

• AMCs argue that the current regulation limits their ability to diversify and pursue new revenue-generating opportunities.
• The restriction affects their ability to scale advisory operations, especially in global markets.

SEBI’s Broader Review

• SEBI Executive Director Manoj Kumar indicated that Regulation 24 is “the only restrictive clause” in MF rules, warranting specific attention.
• He also noted that the overall MF regulation is among the lengthiest of all SEBI rules, and a comprehensive overhaul is under consideration to streamline compliance.

Possible Implications

• A relaxation of Clause 24 could:
  • Enhance AMC competitiveness by enabling entry into lucrative adjacent sectors.
  • Expand the global footprint of Indian mutual fund firms through easier cross-border advisory services.
  • Align regulatory frameworks with evolving business models and market dynamics.

A Path Toward Regulatory Simplification and Market Expansion

SEBI’s move to review and potentially liberalize mutual fund regulations reflects a shift towards creating a more flexible, growth-oriented regulatory environment for AMCs. If implemented, the changes could open new business avenues and improve the global competitiveness of India’s mutual fund industry.

Mint

2. Bank Credit Growth in FY26

Context:

Crisil Ratings projects bank credit growth in FY26 to rise to 12–13%, up from 11–11.5% estimated for FY25. This represents an expected acceleration of 100–200 basis points year-on-year.

Key Growth Drivers

• Supportive Regulatory Measures: Recent policy decisions by financial regulators are likely to enhance liquidity and credit transmission.
• Tax Cuts and Boost to Consumption: Personal tax reliefs and fiscal measures are expected to increase disposable income, thereby driving retail credit.
• Softer Interest Rates: With interest rate softening likely in the upcoming quarters, borrowing costs are expected to decline, supporting both corporate and retail credit demand.

Sectoral Insight: Corporate Credit

• Corporate loan demand is expected to pick up momentum, especially from sectors benefitting from:
  • Downstream infrastructure demand
  • Government-led capex in transport, logistics, and urban infrastructure
  • Robust order books in construction and allied industries

Implications for the Banking Sector

• Improved credit demand across retail and corporate segments could boost banks’ top-line growth.
• With asset quality indicators remaining stable, credit expansion is likely to be sustainable.
• Banks may focus more on term loans, MSME lending, and project finance as infrastructure activity gathers pace.

About CRISIL

CRISIL ratings are assessments of creditworthiness provided by CRISIL Ratings Limited, a leading credit rating agency in India. These ratings, which indicate the likelihood of an issuer or rated entity defaulting on its debt obligations, are crucial for investors and lenders to assess risk and make informed decisions. 

Crisil’s projection underscores a positive shift in India’s credit cycle, supported by policy stimulus, economic tailwinds, and lower cost of funds. FY26 could mark a pivotal year for bank-led financing in India’s growth story.

TH

3. NPCI Discusses UPI Outages with Banks, Google Pay & PhonePe

Context:

The National Payments Corporation of India (NPCI), operator of Unified Payments Interface (UPI), held a high-level meeting with major banks and third-party application providers (TPAPs). The meeting followed multiple UPI outages over a three-week period, notably on March 26, March 31, April 2, and April 12 2025, causing widespread transaction failures and customer inconvenience.

NPCI’s Response and Action Plan

• NPCI announced a “root cause analysis” (RCA) of the April 12 outage, expected to conclude this week.
• NPCI is drafting a detailed “to-do” list for banks and TPAPs to strengthen UPI infrastructure and prevent future disruptions.
• Participants were urged to implement infrastructure upgrades and monitor latency and success rates more rigorously.

Technical Insights into Past Outages

• March 26: NPCI reported intermittent technical issues, leading to partial transaction declines.
• April 1: Financial year-end processing delays caused issues for some banks, although NPCI said UPI was functioning properly overall.
• April 2: NPCI cited success rate fluctuations in some banks, increasing latency across the UPI network.
• April 12: Intermittent technical issues again resulted in partial declines.

Industry Impact and Way Forward

• The outages have led to rising concern from regulators, fintech stakeholders, and users.
• NPCI’s proactive engagement and upcoming action list aim to fortify UPI’s reliability as India’s most widely used real-time payment platform.
• Systemic upgrades and enhanced coordination between banks and TPAPs will be key to preventing future outages.

With UPI at the heart of India’s digital payments ecosystem, ensuring uptime reliability, system resilience, and real-time transaction integrity is critical. NPCI’s push for a structured corrective roadmap signals a move toward long-term infrastructure robustness and stakeholder accountability.

TET

4. IndusInd Bank Flags ₹1,979 Cr Derivatives Impact After PwC Review

Context:

IndusInd Bank confirmed on April 15 that PwC, the external agency appointed for an independent assessment, identified discrepancies in its derivatives portfolio. The estimated negative impact is pegged at ₹1,979 crore as of June 30, 2024, to be reflected in FY25 financial statements.

Impact on Financial Health

• The adverse post-tax impact is 2.27% on net worth as of December 2024.
• The bank’s Q3FY25 net worth stood at ₹65,102 crore, implying a material financial dent.
• Despite the hit, the bank reaffirmed it will report net profit for Q4 and FY25, as per CEO Sumant Kathpalia.

Timeline of Events

• March 10, 2025: Bank’s internal review flagged an initial estimated hit of ₹1,530 crore (~2.35% of net worth).
• PwC was engaged to validate and refine the impact assessment.
• The bank has also appointed an independent firm to investigate the root cause of the discrepancies.

RBI’s Position and Market Measures

• The Reserve Bank of India (RBI) assured depositors of the bank’s financial stability and urged calm amid speculative reports.
• In response to liquidity concerns, IndusInd Bank raised ₹16,550 crore in Certificates of Deposit (CDs) at 7.75–7.9% interest in March — five times higher than its usual CD market activity.

Deposit and Advances Trends (Q4FY25)

• Retail and small business deposits fell by ₹3,550 crore, from ₹1.88 trillion to ₹1.85 trillion.
• Total deposits rose marginally by 0.4% QoQ, reaching ₹4.11 trillion — a 6.8% YoY increase.
• Overall advances shrank by ₹19,000 crore from the December quarter.

BS

5. Axis Bank Cuts Savings Rates

Context:

Axis Bank’s 25 bps reduction in savings account rates (effective April 15, 2025) signals a calibrated effort to improve Net Interest Margins (NIMs) amid easing policy rates and surplus liquidity.

• With savings deposit rates now at 2.75% for amounts up to ₹50 lakh (similar to HDFC Bank), Axis is:
  • Aligning with competitive benchmarks
  • Monetizing low-cost deposit base
  • Offsetting potential yield compression in a low-rate environment

Margin Impact vs. Deposit Behavior Trade-Off

• Macquarie Capital estimates a 5 bps NIM expansion for Axis and HDFC Banks in Q1FY26 from this move.
• Despite low returns on savings, term deposit rates (~7%) already attract rate-sensitive depositors.
• Hence, further savings rate cuts may not significantly accelerate deposit migration.

Deposit Composition Shift:

• HDFC Bank’s savings share dropped from 33% to 24% due to merger and rate compression.
• This structural shift pressures banks to optimize pricing on stable liabilities.

Banks are making a calculated trade-off: sacrificing a small portion of cost-efficient CASA (Current Account Savings Account) deposits to lock in medium-term margin gains, especially when treasury returns remain subdued.

Competitive Benchmarking and Market Implications

Bank	≤ ₹50 lakh	> ₹50 lakh	Remarks
Axis Bank	2.75%	3.25% (up to ₹2,000 cr)	Linked to MIBOR + 70 bps above ₹2,000 cr
HDFC Bank	2.75%	3.25%	Cut effective April 12; first major mover
ICICI Bank	3.00%	3.50%	Yet to respond; risk of short-term deposit gain
SBI	2.70%	3.00% (> ₹10 cr)	Conservative stance since Oct 2022

Implication:
As leading private banks align savings rates, pressure builds on ICICI Bank and mid-sized players to respond, especially to avoid margin erosion.

Macroeconomic Context & Policy Signal

• RBI’s 50 bps policy rate reduction across two recent MPC meetings and OMO infusions indicate a dovish stance and system liquidity surplus.
• In this backdrop, banks are:
  • Repricing liabilities more aggressively
  • Prioritizing profitability over deposit growth
  • Leveraging excess liquidity via open market operations (₹1.2 lakh crore in April alone)

The Axis Bank move signals a proactive liability management trend, banking on:

• Customer stickiness in savings accounts
• RBI’s accommodative policy
• Opportunity to lock in low-cost liabilities ahead of credit expansion

BS

6. Portfolio Management Services (PMS)

Context:

Portfolio Management Services (PMS) in India are regulated by the Securities and Exchange Board of India (SEBI) to ensure transparency, protect investor interests, and maintain the integrity of financial markets. Below is a breakdown of the key rules governing PMS in India.

Key Rules and Regulations

Minimum Investment Requirement:

• ₹50 Lakhs Minimum Investment: SEBI mandates a minimum investment of ₹50 lakhs in PMS, either in cash or through securities. This requirement is aimed at targeting high-net-worth individuals (HNIs) who are more capable of handling the risks associated with portfolio management.

Portfolio Manager Registration and Compliance:

• Registered Portfolio Managers: Only portfolio managers registered with SEBI are authorized to offer PMS services.
• Net Worth Requirements: Portfolio managers must maintain a minimum net worth of ₹5 crores to be eligible to manage PMS accounts.
• Custodian Appointment: If a client’s portfolio exceeds ₹500 crores, the portfolio manager must appoint a SEBI-registered custodian to handle the client’s assets.
• Separate Account Maintenance: Portfolio managers are required to maintain each client’s account separately to ensure clarity and prevent potential conflicts of interest.

Agreement and Transparency:

• Formal Agreement: A written agreement between the portfolio manager and the client is mandatory. This agreement should specify the fees, risk factors, scope of services, and other important details of the portfolio management.
• Fee Structure Transparency: The fee structure must be clearly communicated to clients, and they must acknowledge their understanding of the charges before onboarding.
• Client’s Rights and Limitations: The agreement must outline the rights of the client, limitations of the portfolio manager, and scope of services provided.

Other Important Rules

• Upfront Fee Limitations: Upfront fees charged by portfolio managers cannot exceed 25% of the total fees for the duration of the PMS agreement.
• Exit Load: Although PMS services do not have a mandatory lock-in period, they may levy an exit load based on the agreement terms.
• Performance Reporting: Portfolio managers must regularly disclose performance reports, fees, and risk factors to investors.
• Transaction Limits: There are limits on transactions executed through associates of portfolio managers, with charges capped at 20% by value per associate per service.
• Record-Keeping: Portfolio managers must maintain detailed records of investment transactions and recommendations, including the rationale behind each decision.
• Distribution Compliance: Distributors of PMS services must comply with SEBI’s Code of Conduct and register with the Association of Portfolio Management Intermediaries (APMI).

SEBI’s regulations for PMS ensure that portfolio managers operate within a structured and transparent framework, safeguarding investor interests. These rules aim to maintain high standards of integrity, while encouraging responsible growth in the wealth management sector.

7. Sebi Imposes Five-Year Ban on Kalapi Shah for PMS Violations

Context:

The Securities and Exchange Board of India (Sebi) has imposed a five-year ban on Kalapi Shah, a key figure in Teji Mandi Analytics Private Ltd (TMAPL), for violating Portfolio Management Services (PMS) rules. The regulatory action aims to uphold compliance with market regulations and safeguard investor interests.

Key Points:

• Violation: Kalapi Shah, along with Anil Gopal Gandhi, was found responsible for managing TMAPL’s operations, breaching the rules set for PMS.
• Namesake Director: Riddhi Kalapi Shah, Kalapi Shah’s wife, was listed as a “namesake director” without active involvement in the company.
• Regulatory Action: Sebi’s order reflects its commitment to enforcing market norms and ensuring transparency in the securities market.
• Impact: The five-year ban on Kalapi Shah serves as a deterrent against similar violations and strengthens the regulatory framework.

This regulatory action by Sebi underscores the importance of adhering to PMS guidelines, ensuring that market participants operate with integrity to protect investor interests.

BS

8. Sebi Bars Gensol Promoters for Alleged Fund Diversion and Misleading Disclosures

Context:

The Securities and Exchange Board of India (Sebi) has barred Anmol Singh Jaggi and Puneet Singh Jaggi, promoters of Gensol Engineering, from being directors in the company and from dealing in securities due to alleged fund diversion. Sebi has also placed a hold on the company’s stock split.

Investigation Findings

• Forensic Audit: Sebi has decided to appoint a forensic auditor to examine the books of accounts of Gensol Engineering and its related entities.
• Fraudulent Fund Diversion: Sebi’s interim order cites prima facie evidence of misutilization and diversion of funds in a fraudulent manner by the promoter directors, who are alleged to be the direct beneficiaries of the diverted funds.

Details of Alleged Fund Misuse

• Loan Mismanagement: Gensol Engineering availed ₹977.75 crore in term loans from IREDA and PFC, with ₹663.89 crore allocated for purchasing 6,400 electric vehicles. However, the company only procured 4,704 vehicles for ₹567.73 crore, leaving ₹262.13 crore unaccounted for.
• Funds Route: Sebi alleges that the remaining funds were either transferred back to the company or routed to entities directly or indirectly related to the promoters.
• Misuse of Funds: Some of the diverted funds were reportedly used for personal expenses of the promoters, including the purchase of high-end real estate, and for the benefit of private promoter entities and close relatives.

Misleading Disclosures to Investors:

• False Pre-Orders: Gensol Engineering made disclosures indicating that it had received pre-orders for 30,000 electric vehicles. However, Sebi claims the Memorandums of Understanding (MoUs) were mere expressions of willingness, lacking price or delivery details, suggesting that the company made misleading disclosures to investors.
• Lack of Manufacturing Activity: During a visit to the company’s Pune plant, Sebi observed minimal activity, with only 2-3 laborers present, raising further concerns about the company’s operations.

Sebi’s action reflects its ongoing commitment to ensuring transparency and compliance within the securities market. The ban on Gensol’s promoters and the forensic audit ordered are critical steps in investigating and addressing the alleged fraudulent activities and misleading practices that have impacted investors and the integrity of the market.

TET

9. IFC Launches Call for Financial Institutions to Join MSME

Context:

The International Finance Corporation (IFC) has announced a call for expressions of interest for financial service providers (FSPs) to become intermediaries under its new Catalytic First Loss Guarantee Facility, part of the MSME Finance Platform.

Key Objectives of the Facility

• Expand access to finance for:
  • Women-owned businesses
  • Agriculture enterprises
  • Climate-focused MSMEs
• Demonstrate the commercial viability of these segments
• Pilot innovative products, services, and risk assessment models

What the Facility Offers

• A first loss guarantee for eligible FSPs
• Encourages scaling up lending to underserved MSMEs
• Aims to boost job creation, promote inclusive growth, and foster sustainable development

Why This Matters

• MSMEs make up:
  • 90% of firms globally
  • 70% of total employment
  • 50% of GDP on average
• Current MSME finance gap:
  • $5.7 trillion, expanding to $8 trillion when including informal enterprises

Eligibility Criteria for FSPs

• Regulated banks, NBFCs, digital lenders, leasing, and microfinance institutions
• Must be authorized to lend or lease as per local regulations
• Must meet IFC’s qualification requirements:
  • Environmental & Social Risk Rating (ESRR)
  • Integrity Due Diligence (IDD)
  • Proven financial and operational capability
  • Positive developmental impact

About IFC:

• Part of the World Bank Group
• Operates in 100+ countries
• FY24 commitments: $56 billion
• Mission: Mobilize private capital to support sustainable development and eliminate poverty in emerging markets
• Website: www.ifc.org

This initiative reinforces IFC’s commitment to unlocking inclusive finance and climate-aligned economic growth by leveraging partnerships with local financial institutions.

10. Capitalmind Gets SEBI Nod to Launch Mutual Fund Operations

Context:

Capitalmind Financial Services, founded by market commentator and portfolio manager Deepak Shenoy, has received final approval from the Securities and Exchange Board of India (SEBI) to launch its mutual fund business under the Capitalmind Mutual Fund brand.

Key Highlights:

• New AMC:
  Operations will be managed through Capitalmind Asset Management Private Limited (Capitalmind AMC).
• Investment Strategy:
  Capitalmind will offer actively managed equity funds that use quantitative, data-driven strategies.
• Track Record:
  • Capitalmind currently manages ₹2,000+ crore in assets through its Portfolio Management Services (PMS) and Alternative Investment Fund (AIF) structures.
  • Flagship strategies include Adaptive Momentum and Surge India, both known for delivering robust post-fee returns over the past 5 years.
• Tech-first Approach:
  • Entire tech stack built in-house, including automated trading systems and fund accounting.
  • Maintains daily equity curve transparency, aligning with its reputation for rules-based, investor-first strategies.
• Investor Base:
  • Over 1,400 clients in PMS and AIF
  • 20,000+ subscribers to Capitalmind Premium
  • 4 lakh+ social media followers and 8.5 lakh podcast downloads
• Leadership Outlook:
  Anoop Vijaykumar, Head of Equities, emphasized simplifying retail investing through accessible, transparent, and performance-driven products.

Future Plans:

• Initial mutual fund offerings will focus on equity schemes.
• Expansion plans include debt, hybrid, and multi-asset funds in the future.

Sector Context:

• India’s mutual fund industry now manages over ₹65 lakh crore in assets, with 5.3 crore+ unique investors.
• SEBI continues to promote financial inclusion. For instance, in March 2025, it reduced the minimum investment in Social Stock Exchange (SSE) from ₹10,000 to ₹1,000, enabling wider participation.

About SEBI:

• Established: 12 April 1988 (Statutory status in 1992)
• Headquarters: Mumbai
• Chairman: Tuhin Kanta Pandey
• Regulates securities and commodities markets under the Ministry of Finance, Government of India

Capitalmind’s foray into mutual funds marks a significant shift, leveraging its successful PMS legacy into a retail-friendly mutual fund space—with transparency, tech, and performance at its core.

11. RBI Launches ‘On Tap’ Theme-Neutral Sandbox to Boost Fintech Innovation

Context:

The Reserve Bank of India (RBI) has introduced a ‘Theme Neutral’ On Tap Regulatory Sandbox (RS), allowing continuous submission of applications for testing fintech innovations. This marks a major shift from the earlier theme-based cohort model, aiming to support a more dynamic and inclusive innovation environment.

Key Highlights

• Announcement Date: April 9, 2025
• Objective: Encourage continuous, flexible experimentation in the fintech ecosystem
• Previous System: Theme-based cohorts (4 completed since launch in 2019)
• New System: Open to all fintech themes, fostering broader participation

Eligible Innovation Areas Include

• Digital Financial Literacy
• Digital Lending & Alternate Credit Scoring
• e-KYC and Identity Verification
• Emerging Technologies:
  • Artificial Intelligence (AI)
  • Machine Learning (ML)
  • Blockchain
  • Smart Contracts
  • Tokenisation
• Financial Inclusion
• Mule Account Detection & Tracking
• RegTech (Regulatory Technology) and SupTech (Supervisory Technology)
• Open Finance Ecosystems
• Fintech Services for Divyang (Persons with Disabilities)
• Grievance Redressal Mechanisms
• Sustainable Finance and Climate Risk Mitigation

Application Process

• Entities can apply at any time, via email, with all relevant documentation.
• Evaluations are based on the Enabling Framework for Regulatory Sandbox.

Significance

• Encourages proactive engagement from innovators and startups.
• Supports a regulatory environment aligned with rapid fintech evolution.
• Ensures consumer protection while promoting experimentation and regulatory flexibility.

Recent RBI Update

• In April 2025, RBI approved NPCI’s proposal to raise UPI transaction limits for person-to-merchant (P2M) payments—another move to accelerate digital payments adoption.

About the RBI

• Founded: 1 April 1935
• Headquarters: Mumbai, Maharashtra
• Governor: Sanjay Malhotra

The new ‘On Tap’ Sandbox reflects RBI’s strong commitment to nurturing fintech innovation, improving financial access, and ensuring a forward-looking regulatory framework in India’s rapidly evolving digital finance space.

12. HDFC Bank Executes India’s First Gold Forward Deal from GIFT City

Context:

HDFC Bank has set a major milestone by becoming the first Indian bank to execute a gold forward deal from GIFT City, Gujarat. This breakthrough marks a significant step in the evolution of India’s bullion and derivatives trading landscape.

Key Highlights

• Deal Partner: Hindustan Platinum, a global player in precious metals refining and manufacturing
• Executed by: HDFC Bank’s International Banking Unit (IBU)
• Platform Used: Indian International Bullion Exchange (IIBX) at GIFT City
• Significance: This is India’s first-ever gold forward transaction from a domestic offshore financial center

What is a Gold Forward Deal?

• A gold forward deal is a contract to buy/sell gold at a pre-agreed price on a future date
• It helps hedge against price volatility, offering businesses financial certainty in a fluctuating gold market

Impact & Benefits

• New Hedging Opportunities: Onshore Indian entities can now use GIFT City to hedge gold price risks
• Strengthens Bullion Ecosystem: Boosts confidence and liquidity in India’s bullion market
• Enhances GIFT City’s Profile: Positions GIFT City as a global financial and commodities trading hub

About HDFC Bank

• Founded: 1994
• Headquarters: Mumbai, Maharashtra
• MD & CEO: Sashidhar Jagdishan
• Tagline: “We understand your world”

This pioneering deal underscores HDFC Bank’s leadership in financial innovation and sets the tone for deeper integration of India’s bullion market with global financial systems via GIFT City.

13. ICICI Bank Cuts Savings Account Interest Rates by 0.25%

Context:

ICICI Bank has reduced its savings account deposit interest rates by 25 basis points (0.25%), following a similar move by HDFC Bank. This decision aligns with the broader trend of lowering deposit rates amid the Reserve Bank of India’s recent back-to-back rate cuts.

Revised Interest Rates – Effective Now:

• Up to ₹50 lakh balance:
  • New Rate: 2.75% per annum
  • Previous Rate: 3.00% per annum
• Above ₹50 lakh balance:
  • New Rate: 3.25% per annum
  • Previous Rate: 3.50% per annum

These rates are now on par with HDFC Bank, India’s largest private lender, which also announced similar rate reductions recently.

Why This Matters

• Follows RBI Easing: The RBI’s recent policy rate cuts are prompting banks to adjust their deposit and lending rates.
• Liquidity Management: Banks are flush with liquidity and facing muted credit demand, reducing the need to offer higher deposit rates.
• Impact on Savers: Depositors, especially those relying on savings interest for income, will now see lower earnings on their idle bank balances.

The rate cut reflects the ongoing shift in the interest rate cycle. Depositors may want to explore fixed deposits, short-term debt funds, or hybrid instruments for better yields while keeping risk appetite and liquidity needs in mind.

BS

Economy

1. Retail Inflation Drops to 3.34% in March 2025

Analytical Overview of Inflation Trends

• Retail inflation cooled to 3.34%, the lowest in 5.5 years, reflecting strong disinflationary momentum.
• The decline aligns with a supply-driven easing in food prices, particularly:
  • Vegetables and pulses: Sharp price corrections amid improved rabi arrivals.
  • Eggs: Normalization of poultry supply post-avian flu concerns.
  • However, edible oils and fruits remain sticky due to import cost pressures and supply chain bottlenecks.

Core vs Headline CPI Decomposition

• Headline CPI fell, but core inflation (excluding food and fuel) remains relatively stable, indicating:
  • Limited pass-through of input cost declines to services and manufacturing.
  • A sectoral divergence where essentials are easing but discretionary inflation is flat.

Rural-Urban Divergence: Interpreting the Shift

• Rural inflation fell from 3.79% to 3.25%, highlighting:
  • Improved food availability in hinterlands.
  • Stabilization of fuel prices aiding household consumption.
• Urban inflation inched up to 3.43% (from 3.32%), driven by:
  • Higher services cost (e.g., rent, health, education).
  • Urban consumption resilience amid declining borrowing costs.

Policy Transmission and RBI’s Balancing Act

• The decline follows two repo rate cuts (25 bps each), signaling:
  • Effective transmission of monetary policy into the real economy.
  • RBI’s shifting focus from inflation containment to supporting growth recovery.
• Economists now anticipate:
  • A 50 bps rate cut in the coming policy cycles.
  • A terminal repo rate of 5.0%–5.25%, reinforcing an accommodative stance.

State-Level Disparities: Underlying Structural Issues

• Kerala (6.6%) and other southern/western states saw higher inflation due to:
  • Higher logistics costs, labour shortages, and localized food inflation.
• Delhi (1.5%) and Telangana (1.1%) benefited from:
  • Urban supply chain efficiency and subsidy measures.

Strategic Implications

• For Policymakers:
  • Opportunity to anchor inflation expectations below 4% sustainably.
  • Scope to front-load infrastructure and rural support to boost demand.
• For Markets:
  • Bond yields may soften further, supporting debt market rally.
  • Rate-sensitive sectors (real estate, auto, BFSI) likely to see demand uptick.
• For Consumers:
  • Improved purchasing power in rural India could drive consumption-led growth in FY26.

TOI

2. Morgan Stanley Lowers India’s Growth Forecast for 2025-26

Context:

Morgan Stanley has downgraded India’s growth forecast for 2025-26 by 40 basis points to 6.1%, attributing the revision to changes in trade and tariff policies. The financial services firm also reduced its growth estimate for 2026-27 to 6.3%, down from an earlier projection of 6.5%.

Key Factors Influencing the Downward Revision

• Impact of Trade Policies: The revision reflects uncertainty caused by changes in global trade and tariff policies, which are expected to dampen external demand and business sentiment, thereby affecting the capex cycle.
• Growth Trough in December 2025: Growth is projected to trough in the December 2025 quarter at 5.7%, compared to 6.2% in the same period the previous year.

Inflation Outlook

• Moderate Inflation Forecast: Despite the slower growth, Morgan Stanley expects inflation in India to remain benign, with an average of 4% for the current financial year.
• Factors Keeping Inflation in Check: Lower food prices and reduced oil prices are expected to keep both food and non-food inflation at manageable levels.

Implications for Monetary Policy

• Rate Cuts Expected: Given the lower inflation and slower growth, Morgan Stanley anticipates that the Reserve Bank of India (RBI) will likely implement a cumulative 100 basis points rate cut in 2025, with two more interest rate cuts expected.
• Deeper Downturn Risks: A more pronounced economic downturn could lead to additional easing by the RBI and potentially a pause in fiscal deficit consolidation for F2026.

Risks and Uncertainty

• Downside Risks: The growth outlook is skewed to the downside, primarily driven by the potential for a deeper slowdown in global growth.
• External Volatility: Risks from global capital flows and currency volatility could complicate efforts by policymakers to manage growth risks.
• Trade Policy Resolution: The growth trajectory could improve if uncertainties surrounding tariff policies are resolved, particularly if the US and China strike a timely trade deal.

Morgan Stanley’s revised forecast indicates that India’s growth will face significant challenges in the near term, influenced by external trade factors and global economic uncertainties. However, with moderating inflation and potential policy easing by the RBI, India’s economic environment may stabilize, offering an opportunity for recovery in the medium term.

TET

Facts To Remember

1. Ranjit Nair, philosopher and passionate advocate of science, passes away

Ranjit Nair, intellectual and founder of the Centre for Philosophy and Foundations of Science (CPFS), died of a cardiac arrest at his residence here on Monday. He was 70.

2. Ajay Bhushan Pandey, exNFRA chief, joins AIIB

Former chairperson of the National Financial Reporting Authority (NFRA) Ajay Bhushan Pandey has taken charge as the Vice President, Investment Solutions at the Asian Infrastructure Investment Bank (AIIB). 

3. Dinesh Maheshwari to be Law Commission chairperson

Seven months after the 23rd Law Commission of India was set up, with examining whethera uniform civil code (UCC) can be introduced in the country as one of its terms of reference, the Centre on Tuesday evening announced the appointment of retired Supreme Court judge Dinesh Maheshwari as its chairperson.

4. Rupee Strengthens to 85.77/$ on US Tariff Optimism, RBI Liquidity Measures Boost Bonds

The Indian rupee closed at 85.77 per dollar on April 15, 2025, gaining 27 paise from its previous close of 86.04. Intraday, the rupee peaked at 85.59, before paring gains on suspected RBI dollar purchases. Optimism over tariff relief by US President Donald Trump and a dip in the US dollar index to 99.7 supported the rupee’s rise. The RBI is suspected to have intervened at around 85.56 levels to temper further appreciation, according to Finrex Treasury.

5. WHO Member States Finalize Landmark Pandemic Agreement After Three Years of Talks

Member states of the World Health Organization (WHO) today finalized a historic agreement to prepare the world for future pandemics, following negotiations that spanned over three years. The agreement calls for technology transfers to be incentivised through regulations, licensing agreements, and favourable financing conditions. 

6. Lok Sabha Select Committee Holds Meeting on Income Tax Bill 2025

The Select Committee of Lok Sabha on the new Income Tax Bill – 2025 is holding a meeting at the Parliament House in New Delhi. The 31-member panel is headed by BJP MP Baijayant Panda. The Committee will submit its report on the first day of the Monsoon session of Parliament.

7. Justice Arun Palli sworn in as Chief Justice of Jammu & Kashmir and Ladakh High Court

Justice Arun Palli today took oath as the Chief Justice of the Jammu & Kashmir and Ladakh High Court. He was administered the oath by Jammu & Kashmir Lieutenant Governor Manoj Sinha. 

8. MP govt assures continuation of Ladli Behana Yojana, sets new time frame for monthly payments

The Madhya Pradesh government has clarified that the Ladli Behana Yojana will not be stopped. The state government has now also set a time limit for the amount to be given every month under this scheme.

9. GeM facilitates insurance for over 1.3 cr individuals, hires 10 lakh manpower in FY 2024-25

Government e-Marketplace (GeM), India’s largest e-marketplace for public procurement, has facilitated insurance of more than 1 lakh 30 thousand crore individuals covering Health, Life and Personal Accident Insurance policies in the Financial Year 2024-25.

10. India, G4 nations oppose religious-based seats in UN Security Council reform

India and other G4 nations, including Brazil, Germany, and Japan, have opposed proposals to allocate seats based on religion in a reformed UN Security Council.

11. India make strong start at ISSF World Cup winning gold, silver, bronze

In Shooting, India made a strong start to their ISSF World Cup campaign in Lima, winning gold, silver, and bronze on the opening day. 

12. India-US to hold discussions on Bilateral Trade Agreement; terms of reference signed for initial phase

India and US will hold discussions on the Bilateral Trade Agreement this week. The two countries signed the terms of reference for the first part of the bilateral trade deal.