Daily Current Affairs (DCA) 19 April, 2025

Daily Current Affairs Quiz
19 April, 2025

International Affairs

1. U.S. May “Move On” from Russia-Ukraine Peace Efforts

Rubio’s Statement in Paris

• U.S. Secretary of State Marco Rubio hinted that the U.S. could disengage from peace negotiations if no progress is made “in a matter of days.”
• He emphasized that the U.S. has “other priorities” and signaled a shift in focus if talks continue to stall.
• His remarks followed landmark discussions in Paris involving U.S., Ukrainian, and European officials, where some progress toward a peace framework was noted.

2. Upcoming Peace Talks in London

• A follow-up meeting is scheduled for next week in London.
• Rubio suggested this could be decisive for the Trump administration’s future involvement in the peace process.

3. U.S.-Ukraine Minerals Agreement

• Amid the broader negotiations, the U.S. and Ukraine have advanced talks on a minerals agreement.
• The deal is reportedly linked to efforts by the Trump administration to recover part of the military aid provided to Kyiv since Russia’s 2022 invasion.

4. Kremlin Response and Renewed Tensions

• In a quick response to Rubio’s statement, a Kremlin spokesperson declared that the 30-day pause on Russian strikes against Ukrainian energy infrastructure has expired.
• This pause had been in place since initial U.S.-Russia dialogue commenced, suggesting an uptick in military tensions may follow.

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2. Trump Administration Revokes Visas of Over 1,000 Students

Context:

Amid heightened immigration enforcement in the United States, more than 1,000 international students have reportedly had their visas revoked or SEVIS records terminated since late March, with Indian students making up 50% of the known cases, according to the American Immigration Lawyers Association (AILA).

Key Developments

• Visa Crackdown:
  • The Associated Press (AP) reported that at least 1,024 students across 160 institutions have faced visa or status termination in recent weeks.
• Indian Students Heavily Affected:
  • Based on AILA’s 327 documented cases, 50% were Indian nationals. Others included students from China (14%), South Korea, Nepal, and Bangladesh.
• Allegations of Arbitrary Action:
  • AILA criticized the Department of State (DoS) and Immigration and Customs Enforcement (ICE) for allegedly revoking visas of even law-abiding students without due process, calling for:
    • Transparency and oversight
    • Appeal mechanisms for SEVIS terminations
    • Minimized disruption to student employment
• MEA Responds:
  • Indian Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal confirmed awareness of the situation and said Indian consulates are providing assistance to affected students.
• U.S. Clarifies Enforcement Stance:
  • U.S. State Department official Margaret MacLeod defended the move, stating, “Those who violate the law will face the consequences.” She also urged undocumented individuals to voluntarily return home.

Legal Backlash & Diplomatic Context

• Several affected students have filed lawsuits against the Trump administration, alleging denial of due process.
• The crackdown follows the second Trump administration’s push for stricter immigration laws, including renewed focus on the Immigration and Nationality Act.
• Meanwhile, U.S. Vice President JD Vance is scheduled to meet PM Modi in New Delhi to discuss bilateral issues during his visit to India.

Background Data

• In the 2023–24 academic year, over 330,000 Indian students were enrolled in U.S. higher education — a 23% increase from the previous year, making India the top country of origin.
• However, reports indicate a 30% drop in student visas issued to Indians in February 2025 — the first full month of Trump’s second term.

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National Affairs

1. A Pillar for a Viksit Bharat 2047

Context:

“Viksit Bharat” is more than a vision—it’s a national commitment to achieving inclusive, equitable, and sustainable growth by 2047. Central to this vision is a future-ready logistics ecosystem that drives connectivity and accessibility across India. However, to truly realize this vision, the logistics sector must undergo a green transformation.

Current Challenges:

1. High Carbon Emissions

• Logistics accounts for 13.5% of India’s GHG emissions.
• Road transport alone contributes over 88% of the sector’s emissions, with trucks responsible for 38% of total CO₂ output (IEA, 2023).
• Warehousing and aviation also significantly contribute to emissions due to energy consumption and fuel dependency.

2. Heavy Reliance on Road Transport

• Over 90% of passenger and 70% of freight movement occur via roads.
• Despite efforts, this mode remains carbon-intensive and inefficient for long-haul logistics.

Green Transition Strategies:

1. Rail Freight Expansion

• Globally, China and the U.S. have successfully shifted a significant freight load to rail.
• Rail transport is low-emission and electrified—India must expand rail freight share for sustainable logistics.

2. Electrifying Road Transport

• India’s electric highway initiative, with overhead electric wires for trucks (e.g., Delhi-Jaipur pilot), could revolutionize clean road freight.
• Electrification ensures both environmental and economic benefits.

3. Green Maritime Transport

• Coastal and inland shipping are underutilized low-carbon modes.
• Shift to LNG-powered vessels, biofuel/electric barges, and solar-powered boats.
• Aligns with IMO’s 2050 goals to reduce global shipping emissions by 50%.

4. Sustainable Warehousing

• Warehouses contribute heavily to emissions via energy use.
• Integrate solar, wind, and geothermal power to make warehousing more energy-efficient.

5. Air Transport

• One of the hardest to decarbonize due to refined fuel reliance.
• Use of sustainable aviation fuels (SAFs) and cross-sector offsets (like greener road and rail) are key to mitigating emissions.

Decarbonising logistics is not just about emission reduction—it’s about building a resilient, competitive, and inclusive economy. With:

• Policy support
• Clean technology adoption
• Investments in infrastructure

India can lead the world in creating a sustainable logistics framework, essential to the vision of Viksit Bharat@2047 and the Net Zero 2070 goal.

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Banking/Finance

1. CBIC Overhauls GST Registration Framework

Context:

In a major push to enhance the ease of doing business, the Central Board of Indirect Taxes and Customs (CBIC) has issued fresh instructions to standardize the Goods and Services Tax (GST) registration process. These reforms address long-standing complaints about inconsistent procedures, unnecessary document requests, and administrative overreach by field officers.

Why It Matters:

The GST registration process is the first touchpoint for any business entering the formal economy. By removing friction, the government aims to increase compliance, support MSMEs, and build a more efficient tax ecosystem.

Key Highlights of the CBIC Directive:

1. Standardized Document Checklist

• Officers must stick strictly to the prescribed list in Form GST REG-01.
• Requests for landlord PANs, Aadhaar cards, or photos inside premises are now prohibited.
• For rented properties:
  • Upload a valid lease/rent agreement
  • Along with one supporting document (e.g., electricity bill, property tax receipt)

2. Ban on Irrelevant Queries

• Field officers are explicitly barred from raising presumptive or off-topic questions.
• Examples of now-banned queries:
  • “Why is the residential address in another state?”
  • “Why offer this service from this location?”

3. Faster, Time-Bound Approvals

• Non-risky applications must be cleared within 7 working days.
• Risky applications (e.g., missing Aadhaar or flagged by analytics) require a mandatory physical inspection and must be resolved within 30 days.

4. Stricter Physical Verification Protocol

• For inspections, officers must upload GPS-enabled photographs at least 5 days before the 30-day limit.
• No more “deemed approval” due to officer inaction — all cases must be actively resolved.

5. Higher Threshold for Additional Document Demands

• Any extra documentation request must now be pre-approved by a Deputy/Assistant Commissioner.
• Officers cannot reject applications for minor deficiencies unless they’re critical to business verification.

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2. FinMin Pushes Banks to Boost eNWR Lending

Context:

In a significant policy push to improve credit access for farmers and agribusinesses, the Union finance ministry has urged all banks — public, private, regional rural, and cooperative — to integrate with the National Credit Guarantee Trustee Company (NCGTC) and the eKisan Upaj Nidhi (eKUN) portal. These platforms facilitate pledge-based financing through electronic negotiable warehouse receipts (eNWRs), enabling farmers to secure loans against stored produce.

Current Status:

• Only 8 banks are registered with NCGTC
• 26 banks have signed up for the eKUN portal, part of the Jansamarth platform

Key Directives from the Finance Ministry:

1. Mandatory Participation Across Banking Sectors

• All public sector banks (PSBs) have been directed to push their regional rural banks (RRBs) to:
  • Formulate eNWR loan policies
  • Integrate with both NCGTC and eKUN platforms

2. Awareness and Outreach Campaigns

• Banks are instructed to promote eNWR-based lending via:
  • Branch-level outreach programs
  • Social media and community awareness drives

3. Bank Recommendations for Implementation

• Banks suggest one-time deduction of credit guarantee fees at loan disbursement to reduce red tape — aligned with CGTMSE norms
• Need to expand WDRA-accredited warehouses to increase rural accessibility and borrower confidence

4. Enhanced Credit Support through eNWR

• eNWR loans are now backed under a credit guarantee scheme covering both credit risk and warehouseman risk
• As per the latest RBI guidelines:
  • Individual farmers: Loan limit raised from ₹75 lakh to ₹90 lakh
  • FPOs, corporate farmers, cooperatives: Limit increased to ₹4 crore

Policy Implications:

• Strengthens India’s pledge-based agri-finance ecosystem
• Reduces post-harvest distress sales by allowing produce-as-collateral financing
• Builds transparency and trust in warehousing and agri-credit

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3. No GST on UPI Transactions Over ₹2,000

Context:

The central government on Friday dismissed speculation that Goods and Services Tax (GST) may be levied on Unified Payments Interface (UPI) transactions above ₹2,000, calling such reports “false, misleading, and baseless.”

In an official statement, the Finance Ministry clarified:

“Currently, there is no such proposal before the government.”

This comes in response to online reports that suggested a potential tax on high-value UPI transactions. The clarification aims to reassure digital payment users and stakeholders amid rising concerns.

No MDR, No GST

The ministry explained that GST is applicable only to certain services — such as the merchant discount rate (MDR) — which may be charged on digital payments made via specific instruments. However, no MDR is currently levied on UPI-based person-to-merchant (P2M) transactions.

In fact, the Central Board of Direct Taxes (CBDT) had removed MDR on UPI and RuPay transactions back in January 2020 to promote digital payments.

“Since no MDR is charged on UPI transactions, there is consequently no GST applicable to these transactions either,” the statement read.

Context & Impact

UPI has become a cornerstone of India’s digital economy, processing billions of transactions every month. Any move to impose GST on UPI would not only raise transaction costs but also undermine financial inclusion and the push towards a cashless economy.

This clarification reinforces the government’s commitment to maintaining a zero-charge framework for UPI payments and supporting seamless, affordable digital transactions for users and merchants alike.

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4. Family Offices Prefer AIF Route in GIFT City Over FIFs

Context:

Family offices, particularly those based abroad, are increasingly opting for Category III Alternative Investment Funds (AIFs) in GIFT City instead of setting up Family Investment Funds (FIFs).

Key Insights

• Shift to AIF Route:
  • Although seven Indian family offices applied to establish FIFs in GIFT City last year, only two received in-principle approval from the GIFT City regulator. However, the FIF route remains unapproved for domestic family offices aiming to invest overseas, with offshore entities allowed but lacking significant traction.
• Revised Regulations Make AIFs Attractive:
  • Recent amendments by the International Financial Services Centres Authority (IFSCA) have clarified the tax regime, making Category III AIFs more appealing. Previously, FIFs investing in public markets were subject to the foreign portfolio investor (FPI) tax regime, facing higher taxes on capital gains, debt, and derivatives.
• Category III AIFs Offer Key Tax Benefits:
  • A Category III AIF may be eligible for the Specified Fund regime, offering key benefits such as:
    • Exemption from capital gains tax on debt and derivatives.
    • 10% tax rate on dividends and interest income. These benefits have attracted more non-resident Indian family offices interested in investing in Indian public markets.
• Growth of AIFs in GIFT City:
  • The number of Category III AIF schemes in GIFT City has risen significantly from 50 in December 2023 to 116 in December 2024, with total investments increasing from $800 million to $2 billion in the same period.
• Global Interest in GIFT City:
  • Family offices from regions like the Middle East are looking to diversify into India and other emerging markets due to polarized valuations and high prices in the U.S. market. The tax-free status on derivatives income in GIFT City has further boosted its appeal.

Family Investment Funds (FIFs)

FIF in Gift IFSC aims to provide a formal structure to manage their investment funds, by setting up a dedicated entity to manage their investment activities, set up by a single-family office or entities under family control, to invest globally.

Financial Growth and Future Projections

• Investment Commitments:
  As of December 2024, total commitments in Category III AIFs reached $4.7 billion, up from $1.67 billion the previous year.
• Interest from Domestic Family Offices:
  There has been an increasing trend of domestic family offices using broad-based AIF vehicles set up in GIFT City to make overseas investments. Experts note that liberalized norms for such investments further incentivize these strategies.

The Category III AIF route in GIFT City is gaining significant traction among family offices due to favorable tax regimes, global volatility, and investment diversification opportunities. This shift is poised to continue as GIFT City evolves into a major hub for international investment flows.

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5. HDFC AMC Posts Steady SIP Inflows

Context:

The mutual fund industry faced challenges in Q4FY25 due to volatile market conditions, but HDFC Asset Management Company (AMC) managed to maintain strong performance, especially in systematic investment plan (SIP) inflows and equity assets under management (AUM).

Key Financial Highlights

• SIP Inflows Remain Stable:
  • Despite market volatility, SIP inflows remained resilient, declining only by 2% quarter-on-quarter (QoQ). The industry saw total SIP flows of ₹78,330 crore in Q4FY25, contributing to active equity and hybrid fund inflows of ₹1.04 trillion.
• Equity AUM Growth:
  • HDFC AMC reported a 26.3% year-on-year (YoY) growth in equity AUM, though there was a 1.7% QoQ decline. The company’s equity AUM market share held steady at 12.8%, and SIP flows grew by 24.6% YoY.
• Revenue and Profit Growth:
  • HDFC AMC’s revenue for Q4FY25 rose 29.6% YoY to ₹901 crore, although it fell 3.6% QoQ. Operating profit also saw a significant YoY increase of 35.8% to ₹714 crore, though it was down 4.7% QoQ. Operating profit margins expanded 367 bps YoY, but contracted 102 bps QoQ to 78.9%.
• SIP Performance and AUM Trends:
  • SIP flows continued to provide stable growth despite challenging market conditions. The Nifty 50 saw flat returns (-0.6%), while Nifty Midcap 150 and Smallcap 250 indices faced adverse returns of -9.6% and -14.9%, respectively.
• Future Outlook and Investments:
  • HDFC AMC remains optimistic about a pickup in inflows for FY26, projecting a mid-teens AUM growth for FY26 and FY27. The management is also focused on expanding the direct channel’s share in total equity AUM and launching new funds.

Product and Strategic Developments

• New Fund Launches:
  • HDFC AMC is preparing to launch a Category II Credit Fund, having already obtained regulatory approval. The company’s international subsidiary launched three funds in Q3FY25, receiving strong investor interest.
• Employee Stock Ownership Plan (ESOP):
  • The company has proposed a new ESOP scheme, subject to shareholder approval, to grant 2.5 million shares to employees over four years, aimed at strengthening employee ownership.
• Diversified Product Portfolio:
  • With a strong competitive position, a diversified product portfolio, and an ongoing digital expansion, HDFC AMC is well-positioned to sustain its growth.

HDFC AMC continues to deliver solid performance despite a challenging market environment, maintaining steady SIP inflows and growth in equity AUM. The company’s strategy of product diversification and digital expansion will likely drive future growth in FY26 and beyond.

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Economy

1. ₹2,250 Cr Export Promotion Mission

Context:

In response to escalating global trade tensions and tariff uncertainties, the Indian government has introduced key measures to support exporters, especially in the gems and jewellery sector, and is expediting the rollout of the ₹2,250 crore Export Promotion Mission, announced in the Union Budget 2025–26.

Key Announcements

1. Revised Duty Drawback Rates

• The Finance Ministry has increased duty drawback rates for precious metal jewellery.
• Gold jewellery: Raised from ₹335.5/gm to ₹405.4/gm of net gold content.
• The duty drawback scheme refunds customs/import duties on goods that are manufactured in India and exported.
• This move aims to enhance the competitiveness of Indian jewellery exports globally.

2. Export Promotion Mission (₹2,250 Cr)

• Proposal finalised by the Commerce & Industry Ministry and submitted as an Expenditure Finance Committee (EFC) note.
• Likely to receive EFC approval by next month, followed by Union Cabinet clearance after inter-ministerial consultations.
• Announced in Union Budget 2025–26 to address global trade headwinds and promote export-led growth.

3. Key Components of the Mission

• Revival of legacy schemes:
  • Interest Equalisation Scheme
  • Market Access Initiative
• New initiatives for small exporters:
  • Collateral-free loans
  • Non-tariff compliance support
  • Alternative financing tools
  • Support for high-risk export markets
• Special focus on MSMEs, with the Commerce Department expected to seek additional funding to strengthen support frameworks.

4. Global Trade Context

• The U.S. imposed additional tariffs (up to 26%) on Indian goods starting April 2, increasing cost pressures.
• A 90-day tariff pause (excluding China) has temporarily lowered duties to 10% on several import categories, providing a short-term breather for exporters.

Conclusion: global trade volatility. Together, these measures aim to:

• Boost India’s export resilience,
• Support MSME exporters,
• Encourage diversification into new markets, and
• Strengthen India’s position in global trade.

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Facts To Remember

1. Indian astronaut set for space travel in May

Indian astronaut Shubhanshu Shukla is set to travel to the International Space Station (ISS) next month as part of an Axiom-4 mission, four decades after Rakesh Sharma’s iconic spaceflight onboard Russia’s Soyuz spacecraft, Union Minister Jitendra Singh.

2. Doyen of angioplasty Mathew Samuel Kalarickal no more

Eminent cardiologist Mathew Samuel Kalarickal, recognised as the ‘Father of Angioplasty’ in India, died at the Apollo Hospitals in Chennai on Friday after a brief illness. He was 77.