Daily Current Affairs (DCA) 23&24 March, 2025

Daily Current Affairs Quiz
23&24 March, 2025

International Affairs

1. India Imposes Anti-Dumping Duty on Five Chinese Goods

Context:

The Indian government has imposed anti-dumping duties to protect domestic industries from cheap imports from China. These goods were found to be exported at below-normal prices, hurting domestic manufacturers.

Anti-Dumping Duty

Anti-dumping duties are imposed by countries to protect domestic industries from a surge in imports at unfairly low prices, in accordance with the rules set by the World Trade Organization (WTO). India has previously imposed similar duties on various products to counteract cheap imports from countries like China.

Products Facing Anti-Dumping Duty

• Soft Ferrite Cores
  • Used in electric vehicles, chargers, and telecom devices.
  • Duty imposed: Up to 35% on CIF (Cost, Insurance, Freight) value.
  • Duration: 5 years.
• Vacuum Insulated Flasks
  • Duty imposed: $1,732 per tonne.
  • Duration: 5 years.
• Aluminium Foil
  • Duty imposed: Up to $873 per tonne.
  • Duration: 6 months (provisional).
• Trichloro Isocyanuric Acid (water treatment chemical)
  • Duty range: $276 per tonne to $986 per tonne.
  • Applies to imports from China and Japan.
  • Duration: 5 years.
• Poly Vinyl Chloride (PVC) Paste Resin
  • Used in plastic manufacturing.
  • Duty range: $89 per tonne to $707 per tonne.
  • Applies to imports from China, Korea RP, Malaysia, Norway, Taiwan, and Thailand.
  • Duration: 5 years.

Authority and Process

• Duties imposed based on recommendations from the Directorate General of Trade Remedies (DGTR).
• Anti-dumping investigations are conducted to assess injury to domestic industries from surging cheap imports.

Strategic Implications

• These measures are aimed at:
  • Curtailing unfair trade practices.
  • Encouraging domestic production.
  • Protecting MSMEs and large manufacturers in critical sectors such as electronics, chemicals, packaging, and plastics.

India’s imposition of anti-dumping duties on five Chinese goods reflects its proactive trade defense strategy to protect domestic industries from unfair pricing and import surges. With these duties in place for up to five years, the move is expected to boost local manufacturing, reduce dependency on cheap imports, and encourage fair competition in key industrial sectors.

2. US Industry Groups Urge Tariff Reduction

Context:

Prominent U.S. industry associations, including the US Chamber of Commerce (USCC), Coalition of Services Industries (CSI), and companies like Harley-Davidson, have urged the Trump administration to pressure India into reducing tariffs and regulatory barriers. The call comes ahead of the US Trade Representative’s (USTR) review of unfair trade practices and the announcement of reciprocal tariffs.

Key Demands from US Industry Associations

a) Pharmaceuticals and Healthcare

• USCC seeks:
  • Lower import duties on pharmaceuticals to promote affordability and greater trade.
  • Inclusion of pharmaceutical manufacturing duallocation in any future trade agreements to strengthen supply chains.
  • Relaxation of price controls on patented medicines and medical devices (e.g., stents, knee implants) that deter investments.
  • Permission to import refurbished or reused medical equipment, such as CT scanners and advanced surgical systems.

b) Consumer Goods

• Reduction of 28% GST on non-alcoholic aerated beverages, currently classified as sin/demerit goods, impacting U.S. company profitability.

c) Automotive Sector

• Harley-Davidson highlights extreme tariff disparities:
  • 68% duty in the EU,
  • 18% in Brazil,
  • 60% in Thailand,
  • 100% in India, calling for immediate tariff rationalization.

d) Financial Services & Digital Sector

• CSI raises concerns about:
  • Local content requirements creating unfair trade barriers.
  • Preferential treatment for India’s domestic payment systems like UPI and RuPay cards.
  • Data localisation policies, hindering fair competition.

Additional Policy Recommendations

• USCC calls for:
  • Competitive neutrality in state-owned enterprises (SOEs).
  • A public procurement agreement between the two nations, allowing mutual access to public sector contracts.
  • Liberalization of additional SOE segments as part of any trade pact.

Strategic Implications

• The demands underscore growing trade tensions and reciprocity issues between the U.S. and India.
• These industry groups aim to secure greater market access, fairer regulatory frameworks, and balanced tariffs for American companies in India.

The strong push from US industry lobbies signals heightened trade friction over high tariffs, local content rules, and market access restrictions in India. As the U.S. evaluates reciprocal tariffs, these industry demands could shape upcoming bilateral trade negotiations and influence the trajectory of India-US trade relations.

3. Brazil’s COP30

Context:

Brazil, the host of COP30, is prioritizing the implementation of the Paris Agreement to achieve the collective goal of slowing global warming.

• Andre Correa do Lago, COP30 president designate and former Brazilian ambassador to India, emphasizes expanding climate discussions beyond the UN climate body into multilateral economic and financial institutions like the World Bank and the IMF.

Key Highlights

• Implementation challenges
  • The UNFCCC and Paris Agreement alone cannot ensure implementation; economic reforms are central to climate solutions.
  • Integration of climate priorities into global financial and development frameworks is essential.
• Mainstreaming climate action within broader multilateral structures is a top focus area for COP30.

India’s Role and Strategic Partnership

• India is the first bilateral visit for do Lago in his role as COP30 president designate.
• India and Brazil have a longstanding partnership in:
  • BASIC (Brazil, South Africa, India, China)
  • BRICS
  • G20
• The aim is not to oppose the global North’s agenda, but to craft a strong, unified agenda from the Global South.
• India has expressed willingness to host COP33, indicating further collaboration potential between both nations.

Addressing Global Challenges

• The US exit and re-entry into the Paris Agreement.
• The ongoing Ukraine war, conflict in Gaza, and global tariff tensions.
• These geopolitical factors pose challenges, but strengthening South-South cooperation is seen as a key strategy to navigate them.

National Affairs

1. Launch of Tavasya

Context:

Tavasya, the final of four follow-on Krivak-class stealth frigates contracted from Russia and the second to be built at Goa Shipyard Ltd. (GSL), was launched. The launch ceremony was conducted by Ms. Neeta Seth, with Union Minister of State for Defence, Sanjay Seth, present.

Background

• In October 2016, India and Russia signed an Inter-Governmental Agreement for four follow-on Krivak-class frigates.
• Two frigates were to be imported from Russia, and two manufactured domestically at GSL under technology transfer.
• A $1 billion contract was signed for the two imports.
• In November 2018, GSL signed a $500 million contract with Rosoboronexport for material, design, and specialist assistance.
• The Defence Ministry signed a formal contract with GSL in January 2019.

Project Progress

• Triput, the first indigenous frigate, was launched in July 2023.
• INS Tushil, built in Russia, was commissioned on December 9, 2024, and arrived at Karwar on February 14, 2025.
• The second Russian-built frigate, Tamal, is undergoing trials and is expected to be commissioned in June 2025.
• GSL plans to deliver Triput in 2026 and Tavasya six months later.

Technical Details

• All ships are powered by engines from Zorya-Mashproekt of Ukraine.
• The frigates are equipped for multi-role operations, including anti-submarine, anti-air, and surface warfare capabilities.
• Stealth features and modern combat management systems are integrated onboard.

Strategic Importance

• The project strengthens India’s naval capabilities and supports the Aatmanirbhar Bharat initiative.
• It enhances India’s maritime presence and operational readiness in the Indian Ocean Region and Indo-Pacific.

2. India-France Naval Exercise Varuna 2024

Context:

India and France deployed their aircraft carriers INS Vikrant and Charles de Gaulle for the bilateral naval exercise Varuna from March 19 to 22, 2024, off the coast of Goa. The exercise offered India a valuable opportunity to closely observe and operate the French Navy’s Rafale-M fighter jets, which India is set to acquire soon. The joint exercise also placed significant emphasis on anti-submarine warfare (ASW) operations.

Key Highlights of the Exercise

• The exercise covered comprehensive naval warfare domains:
  • Sub-surface operations involving Indian submarines.
  • Surface warfare with coordinated engagements between Indian and French frigates.
  • Air warfare integrating MiG-29K and Rafale-M fighter jets from both carriers.
• ASW operations were a major focus:
  • An Indian submarine played the role of aggressor.
  • Indian and French frigates worked in tandem to protect the high-value French replenishment vessel Jacques Chevallier.
  • Both navies compared tactics and refined methods to strengthen underwater warfare cooperation.

Operational Features

• Surface Warfare Drills: Synchronised manoeuvres and ship-to-ship engagement training.
• Maritime Patrol Aircraft (MPA) Integration: Enhanced situational awareness for coordinated threat detection and response.
• Replenishment at Sea (RAS): Logistics and refuelling exercises to strengthen endurance and joint operational capabilities.

Strategic Importance

• The exercise reinforced a shared commitment between India and France toward safeguarding a free, open, and secure maritime environment.
• It deepened trust and enhanced interoperability between the two navies in critical warfare domains.

French Deployment

• The French Carrier Strike Group (CSG), led by Charles de Gaulle, has been deployed in the Indian Ocean Region since November 2024 as part of Mission Clemenceau 25, underscoring France’s strategic focus on the Indo-Pacific region.

3. Kerala Launches ‘Look East’ Campaign

Context:

Kerala’s foreign tourist arrivals stand at only 62% of pre-pandemic levels. Despite being Asia’s largest outbound travel market, China contributes almost no visitors to Kerala.

‘Look East’ Tourism Strategy

• Kerala Tourism has launched a dedicated ‘Look East’ marketing campaign to attract tourists from eight eastern countries, including:
  • China, Australia, Malaysia, and other key eastern markets.
• The campaign aims to strengthen Kerala’s presence in these countries, where current outreach is minimal.

Key Initiatives Under the Campaign

• Airline Partnership:
  • Kerala has formed a strategic understanding with Malaysia’s airways to facilitate better connectivity.
• Inbound Promotion:
  • In April, Kerala will host 40 tour operators and 15 social media influencers from these eight target countries to promote Kerala’s tourism offerings.
• Inspiration from Sri Lanka:
  • Kerala aims to replicate Sri Lanka’s successful tourism promotion model, which leveraged Sri Lankan Airways as a marketing tool.

Focus Areas for Kerala Tourism

• Wellness Tourism:
  • Kerala has emerged as a major hub for wellness and health tourism for international visitors.
• Dedicated Kerala Itinerary:
  • A special ‘Kerala itinerary’ is being promoted to foreign tourists, highlighting unique cultural, natural, and wellness experiences.

Way Forward

• Kerala’s ‘Look East’ campaign represents a strategic shift to revive foreign tourist arrivals, with a focus on:
  • Airline partnerships,
  • Targeted marketing efforts,
  • Wellness and experiential tourism.
• Strengthening links with eastern countries could significantly contribute to Kerala’s post-pandemic tourism recovery and international brand presence.

4. PLI Schemes in India

Context:

The Centre’s Production-Linked Incentive (PLI) schemes, aimed at boosting manufacturing across 14 key sectors, have attracted ₹1.61 lakh crore in investments and generated sales worth ₹14 lakh crore, according to the Ministry of Commerce.

Incentives and Disbursement

• Incentives disbursed: ₹14,020 crore across 10 sectors.
• Key sectors benefiting:
  • Large-scale electronics manufacturing (LSEM)
  • IT hardware
  • Bulk drugs
  • Medical devices
  • Pharmaceuticals
  • Telecom and networking products

Export Growth Driven by PLI

• The Ministry highlighted a transformation in India’s export basket, moving from traditional commodities to high-value products.
• PLI-enabled exports have surpassed ₹5.31 lakh crore (approx. $61.76 billion).
• Major contributors:
  • Electronics and telecom goods
  • Processed food products
  • Pharmaceuticals

Government Counters Reuters Report

• Reuters Report Claim:
  • Production under PLI was at $151.93 billion (₹13 lakh crore), only 37% of the target.
  • Incentives issued were below 8% of allocated funds.
• Government Response:
  • PLI projects have a 2–3-year implementation cycle.
  • Incentive claims are made after the first year of production.
  • Most projects are still in the implementation stage and claims will be filed in due course.

Steel Sector Concerns

• The report also noted lagging production in the steel sector and the withdrawal of 14 out of 58 approved projects.
• The government clarified that the withdrawals were due to changes in business plans and execution delays, not systemic issues.

PLI schemes are driving India’s shift toward high-value manufacturing and export growth. While some delays and project adjustments exist, the government maintains confidence in the long-term success of the schemes. The evolving PLI impact on sectors like electronics, pharmaceuticals, food processing, and telecom highlights India’s push for self-reliance and global competitiveness.

5. Influenza Cases Surge in Delhi-NCR

Context:

Newspapers on March 7-8, 2025 reported a 54% spike in influenza cases in the Delhi-NCR region. The reports were based on a LocalCircle survey of 13,000 people, focused on viral illness symptoms and not clinical testing. Despite the survey mentioning “viral illnesses (Covid/flu/viral fever),” reports attributed the spike primarily to influenza.

Official Data on Influenza Cases

• As per NCDC’s IDSP data (Feb 27, 2025)
  • 516 influenza cases and 6 deaths in January 2025.
  • In 2024, India reported 20,414 flu cases with 347 deaths.
• Lack of segregated monthly historical data makes year-on-year comparisons difficult.
• Flu cases in India typically peak during monsoon and see a secondary peak in winter.

Burden of Influenza in India

• Influenza causes substantial illness and deaths annually.
• Surveillance between 2016–2018 showed:
  • 15.4% of ARI cases and 12.7% of SARI cases were due to influenza.
• Estimating deaths is challenging due to limited clinical testing and low certification of influenza as a cause of death.
• A 2020 study estimated 1,27,092 influenza-related deaths annually in India, with high mortality among those over 65 and children under five.

Vaccination Recommendations and Challenges

• India’s Health Ministry (2018 guidelines):
  • Vaccine “recommended” for pregnant women, children, and adults with chronic illnesses.
  • Only considered “desirable” for adults over 65 and children under five, despite high mortality in these groups.
• WHO recommendations for 2025–26 flu vaccine composition were announced on Feb 28, 2025, giving manufacturers time to prepare.
• Most vaccines in India, including those from Serum Institute, are egg-based.

Vaccine Uptake: Global vs India

• In the U.S., as of Feb 15, 2025:
  • 57 million adults and 47% of children had been vaccinated.
• In India, vaccine uptake remains below 5%:
  • A 2022 study found only 1.5% of adults aged 45+ had ever been vaccinated.
  • Despite severe outbreaks in 2015, 2017, 2019, and 2024, uptake remains stagnant.

Current Market Trends and Production Capacity

• Sanofi spokesperson: Flu vaccine market in India grew 21% in 2025 vs 2024.
• Serum Institute produces 3–4 lakh doses, scalable to 1 million based on demand.

Key Takeaways

• Influenza continues to be a major public health threat in India with underreported and underestimated mortality.
• Low vaccination coverage is attributed to lack of awareness, limited clinical diagnosis, and absence of inclusion in the universal immunisation programme.
• Experts emphasize the need for increased public health campaigns, healthcare worker immunization, and targeted vaccination for vulnerable groups.

6. Study Challenges Infant Memory Assumptions

Key Findings

• A new fMRI study, published in Science, reveals that infants as young as 12 months can encode individual memories.
• This challenges the long-held belief that infantile amnesia—the inability to recall early-life experiences—is due to an inability to form memories.
• Instead, researchers suggest that memory retrieval failures, rather than encoding problems, are the likely cause of this phenomenon.

Understanding Infantile Amnesia

• Infantile amnesia refers to the inability to remember events from the first three years of life.
• One popular theory has attributed this to an underdeveloped hippocampus, the brain region essential for episodic memory.
• Despite this, infants display memory-like behaviors—such as imitation, conditioned responses, and recognition—raising questions about the hippocampus’s role in early memory formation.

The Study: Method and Results

• Conducted by Tristan Yates and colleagues from Columbia University, the study involved infants aged 4 to 25 months.
• Infants were shown faces, scenes, and objects, followed by memory tests using preferential looking behavior.
• While performing these tasks, infants underwent fMRI scans to track brain activity.
• The study found clear signs of hippocampal activation during memory encoding, starting around 12 months of age.

Implications of the Research

• This study provides direct evidence that infants have functional episodic memory encoding mechanisms.
• The research suggests that infantile amnesia may be due to the inability to retrieve those memories later in life, rather than a lack of formation.
• These findings open up new directions in understanding memory development and the neurological basis of early childhood forgetfulness.

Conclusion

• The study challenges long-standing assumptions about infant memory capacity.
• By showing that hippocampal memory encoding begins around one year, the findings highlight retrieval failure as a more probable cause of infantile amnesia.
• This research could have broader implications for early childhood education, memory-related therapies, and understanding cognitive development milestones.

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7. Tuberculosis (TB) Trends and Performance in India

Decline in TB Incidence and Mortality

• TB incidence in India fell below 200 per lakh population in 2022, compared to 237 per lakh in 2015, marking a 16% decline.
• TB mortality rate in 2022 was 23 per lakh population, reflecting an 18% decline compared to 2015.
• (Refer to Chart 1 for incidence trends and Chart 2 for mortality trends.)

Treatment Success Rates by TB Category

• Severely Drug-Resistant TB (resistant to isoniazid, rifampicin, any fluoroquinolone, and at least one second-line injectable drug):
  • Treatment success rate: 45% — the lowest among all TB types.
• MDR/RR-TB (Multidrug-resistant or rifampicin-resistant TB):
  • Treatment success rate: 74%.
• Pre-XDR-TB (MDR-TB with additional resistance to fluoroquinolones):
  • Treatment success rate: 68%.
• Encouragingly, treatment success rates are improving across categories (as shown in Chart 3).

State-Level TB Performance: TB Index

• Top-performing major States in TB control (Map 4):
  • Himachal Pradesh, Odisha, Gujarat.
• Bottom-performing major States:
  • Punjab, Bihar, Karnataka.

Catastrophic Health Expenditure in India

• Over 10% of India’s population faces catastrophic health expenditure, defined as spending more than 10% of household income on health costs.
• India ranks third highest in catastrophic health expenditure among 14 lower-middle-income countries with high TB burden.

Health Coverage vs. Out-of-Pocket Costs

• Approximately 60% of India’s population has health coverage, also ranking third-highest among similar economies.
• However, despite better insurance coverage, a large percentage of households still face steep health costs (Chart 5), indicating a gap between insurance penetration and financial protection.

TH

8. Scientists Discover Four Scorpion Species

Context:

In the first systematic survey conducted in Delhi, scientists have documented four scorpion species inhabiting both urban and forested parts of the city’s semi-arid ecology.

• The research was carried out by:
  • Gaurav Barhadiya and Aisha Sultana (Delhi University)
  • Pratyush P. Mohapatra (Zoological Survey of India)
  • Pragya Pandey and Sanjay Keshari Das (Guru Gobind Singh Indraprastha University)
• The findings are published in the Zoological Survey of India’s paper: “Scorpion Fauna of Urban Delhi, India”.

Key Findings

• Four scorpion species recorded:
  • Chersonesometrus fulvipes
  • Isometrus maculatus
  • Compsobuthus rugosulus
  • Lychas cf. biharensis
• These species belong to two families and four genera.
• Specimens were collected from locations including:
  • Jahapanah City Forest
  • Aravalli Biodiversity Park
  • Lodhi Garden

Collection Methodology

• Scorpions were found by:
  • Lifting rocks and boulders
  • Searching leaf litter
  • Peeling tree bark
  • Exploring microhabitats preferred by scorpions

Significance of the Study

• India has 153 known scorpion species, but only one was previously reported from Delhi.
• This study is the first scientific checklist of scorpion fauna for the Union Territory of Delhi.
• The findings provide baseline data for future studies on scorpion diversity and urban ecology in India.

Source: TOI

Banking/Finance

1. Why Banking IPOs in India Have Been a Poor Investment

Context:

In India’s fast-growing yet inflation-prone economy, parking cash idly may seem like a bad idea but worse has been investing in bank IPOs over the past decade. Despite the bullish sentiment, the long-term performance of most newly listed banking stocks has been dismal.

Key Market Reality

• IndusInd Bank has become the latest example, plunging over 30% in recent weeks, hitting price levels last seen in 2014 (excluding the COVID dip).
• Over the last decade:
  • Nifty Bank Index: 10% CAGR
  • IndusInd Bank: Negative 3% CAGR

Disappointing Performance Across Smaller Private Banks

• Nearly every small and mid-sized private bank that went public in the last 10 years — including IDFC First Bank, Bandhan Bank, RBL Bank, and Small Finance Banks (SFBs) — has underperformed the index.
• Despite solid business growth, share prices failed to deliver due to market perception, governance concerns, or scale issues.

IPO Success Rate

• Out of 13 bank IPOs in the last decade:
  • Only 4 banks (AU SFB, CSB Bank, Equitas SFB, Jana SFB) posted positive returns.
  • Only AU SFB outperformed the index.
  • Failure rate: 92%.

The Power of Scale

• The index’s performance has been driven by the top 5 banks:
  • HDFC Bank, SBI, ICICI Bank, Axis Bank, and Kotak Mahindra Bank
  • In 2015, these accounted for 82.5% of Nifty Bank’s market cap; now 86.5%.
  • The contribution of other banks has dwindled from 17.5% to 13.5%.
• Globally too, scale matters. During the 2023 U.S. banking crisis, small banks like Silicon Valley Bank collapsed, while JP Morgan Chase and Bank of America thrived.

The past decade has shown that scale and established market presence are the keys to success in banking investments. For most investors, it’s safer to invest in the index rather than speculate on small and mid-cap banks.

2. Terrorism Risk Insurance Premiums Set to Fall in India

Context:

From April 1, premiums for terrorism risk insurance are expected to drop by 10-15%. This move comes as state-owned reinsurer GIC Re reduces rates for the terrorism risk insurance pool.

Background

• After international reinsurers withdrew terrorism risk capacity following the 9/11 attacks in 2001, India established a terrorism risk insurance pool on April 1, 2002, administered by GIC Re.
• All non-life insurance companies in India are part of this pool.
• The pool covers terrorism risk under property insurance policies, including residential dwellings and fixed assets.

Pool Structure and Limits

• Initial indemnity limit: ₹200 crore per location.
• Current limit: Increased to ₹2,000 crore per location.

Reason for Rate Reduction

• The premium rates are periodically reviewed based on claims experience, reinsurance costs, and pool expenses.
• No major terrorism-related claims have occurred in India since the 2008 Mumbai attacks.
• Rates had remained unchanged since April 1, 2014, prompting the revision.

Pool Financials (FY24)

• Premium income: ₹1,654.63 crore (down from ₹1,809.01 crore in FY23).
• Claims paid: Only ₹3.12 crore due to the absence of major losses.

Impact on Customers and Corporates

• The premium cut will benefit businesses and individuals purchasing property insurance with terrorism coverage.
• However, large corporates may still opt for terrorism risk coverage from international reinsurance markets, making the rate change less impactful for them.

Regulatory Approval

• The Insurance Regulatory and Development Authority of India (IRDAI) has approved the rate revision.
• The revised rates are inclusive of up to 5% brokerage/agency commission on terrorism premiums.

After a decade of stable rates and low claims, GIC Re’s terrorism risk insurance premium reduction reflects a low-claim environment, benefiting policyholders with reduced costs while strengthening the market’s competitive edge.

Source: BS

3. IndusInd Bank Appoints Grant Thornton for Forensic Audit

Context:

IndusInd Bank, India’s fifth-largest private lender with a $63 billion balance sheet, has appointed Grant Thornton to conduct a forensic review into recent accounting lapses. The review will investigate potential fraud, internal misstatements, and assign accountability for lapses.

Background of the Issue

• On March 10, IndusInd disclosed that its derivatives portfolio was overvalued by 2.35% (approximately $175 million), due to noncompliant internal trades.
• This discrepancy violated Reserve Bank of India (RBI) guidelines.
• Despite the breach, RBI confirmed that IndusInd remains well-capitalised.

Forensic Review Scope

• According to sources, Grant Thornton’s investigation will:
  • Identify the root cause of the accounting lapse.
  • Check for evidence of fraudulent transactions.
  • Review the accounting treatment of all derivative contracts.
  • Assign accountability to individuals responsible.
  • Assess any intentional internal misstatements.

Market Impact

• Since the March 10 disclosure, IndusInd’s shares have declined by 23.4%.

Regulatory Pressure

• Reuters reported that the RBI has advised IndusInd Bank’s CEO and deputy CEO to step down after replacements are found.
• IndusInd Bank, however, denied these claims, calling them “factually incorrect.”

The appointment of Grant Thornton marks a critical step in restoring investor confidence, ensuring transparency, and strengthening governance following one of the most significant accounting lapses in India’s banking sector.

4. How Insurtech Is Transforming the Insurance Industry

Context:

The insurance industry is undergoing significant transformation with the adoption of Artificial Intelligence (AI), Internet of Things (IoT), and blockchain technologies. These innovations are reshaping the insurance value chain, challenging traditional models, and prompting regulators to adapt.

Evolution of Consumer Needs

• Consumers now expect faster, personalised services.
• Digital distribution channels have replaced traditional methods.
• IoT is helping insurers underwrite risk with real-time data insights.

Key Technologies Disrupting Insurance

a) Artificial Intelligence (AI)

• Enhances decision-making and improves customer interaction.
• AI-powered chatbots provide instant support and streamline claims processing.
• Machine learning algorithms analyse large datasets, allowing insurers to assess risks and create customised products for diverse customer segments.

b) Internet of Things (IoT)

• IoT devices collect real-time data, helping insurers monitor risk continuously.
• Usage-based insurance models are emerging, with dynamic premiums adjusting based on actual behaviour.
• A potential use case: tracking seatbelt usage and adjusting premiums for safe or rash driving.

c) Blockchain

• A decentralised digital ledger that enhances transparency and efficiency.
• Enables self-executing smart contracts, paying out claims automatically after trigger events.
• Facilitates secure transactions, minimising fraud and errors.

Benefits of Insurtech

• Fraud prevention: AI tools detect suspicious data and anomalies, preventing fraudulent claims.
• Faster claims processing: Automation and virtual assistants reduce delays and improve customer satisfaction.
• Personalised offerings: Advanced data analysis enables tailored policies for individual customers.
• Efficient operations: Reduces administrative workload, allowing insurers to focus on service quality.

Challenges for Insurers and Regulators

• Data protection: As insurtech adoption grows, safeguarding consumer data becomes critical.
• Regulatory balance: Authorities need to protect policyholders without hindering technological innovation.
• Adoption necessity: Traditional insurers must adapt to stay competitive, partnering with insurtech startups for agility and innovation.

The integration of AI, IoT, and blockchain is not optional; it is essential for the insurance industry to remain competitive and customer-centric. While these technologies promise efficiency, personalisation, and fraud reduction, regulators must ensure consumer protection without stifling growth and innovation. Insurers that proactively embrace these changes will be better positioned for long-term success.

Source: BS

5. The Rise of NBFCs

Context:

NBFCs (Non-Banking Financial Companies) are emerging as key drivers in India’s financial landscape, increasingly stepping out of the shadow of traditional banks. The Reserve Bank of India (RBI) has acknowledged their growing importance, with Deputy Governor M. Rajeshwar Rao highlighting their potential role in achieving the vision of a $5 trillion economy.

Advantages of NBFCs Over Traditional Banks

• Agility and Adaptability
  • Unlike large banks with legacy systems, NBFCs can swiftly adjust to changing market conditions.
  • They can run pilots, pivot strategies, and respond to real-time customer feedback.
• Institution Building from Scratch
  • Focus on governance, risk culture, and people management from day one.
  • Opportunity to avoid the pitfalls of legacy systems.

The New Generation of Shadow Bank Entrepreneurs

• Notable Leaders:
  • Gunit Chadha (APAC Financial Services)
  • Jaspal Singh Bindra (Centrum Group)
  • Shachindra Nath (UGRO Capital)
  • Gaurav Gupta (Tyger Capital)
  • Aseem Dhru (SBFC Finance)
  • Bhupinder Singh (InCred)
  • Vimal Bhandari (Arka Fincap)
• Capital Backing:
  • Nearly ₹6,000 crore in equity was invested at the outset despite challenging times marked by IL&FS and DHFL collapses.
  • Multiples PE and Bain Capital among key investors supporting this evolution.

Current Performance of NBFCs

• Financial Health (as of September 2024):
  • Capital adequacy: 26.1%
  • Net interest margins: 5.1%
  • Return on assets: 2.9%
  • Gross NPAs: 3.4%
• Investor Confidence:
  • Equity capital growth YoY:
    • 26.5% for non-government NBFCs
    • 17.9% for upper-layer NBFCs

Role in Credit Expansion

• Serving Underserved Markets:
  • Focus on small business credit, gold loans, tractor financing, used vehicle financing, and microloans.
  • Act as efficient credit conduits, taking wholesale loans and reaching last-mile customers in smaller towns.
• NBFC vs. Bank Model:
  • Banks: Scale-driven institutions with trillion-rupee balance sheets.
  • NBFCs: Efficiency-focused entities with targeted, smaller portfolios.

Challenges Faced by NBFCs

• Regulatory Changes:
  • Tighter norms, especially regarding expected credit loss frameworks.
  • Restrictions on bank loans to NBFCs.
• Pandemic Aftermath:
  • Four years of navigating pandemic-related disruptions and liquidity challenges.

Future Outlook

• Critical Role in Financial Inclusion:
  • India needs hundreds of financial institutions to bridge credit gaps for small businesses and rural markets.
  • NBFCs will continue to pioneer new financial products and expand access to credit.
• Market Perception Shift:
  • Once considered high-risk shadows of banks, NBFCs are now recognized as vital players in India’s credit ecosystem.

6. Why Bond Yields Diverge Despite RBI Rate Cuts

Context:

The 10-year government bond yield hit its lowest point in three years. However, contrasting this, corporate bond yields and certificate of deposit (CD) rates are on the rise.

• The interest rate spread between the repo rate and corporate bond yields has widened to 125 basis points (bps).
• The spread between government securities and corporate/state bonds has increased from 30–35 bps to 45–55 bps.

Why This Divergence?

Despite the RBI’s 25 bps rate cut, yields are rising due to a liquidity shortage in India’s financial system.

RBI’s Liquidity Management Measures

The Reserve Bank of India has employed several instruments to manage liquidity:

• Dollar-Rupee Buy-Sell Swaps:
  • On March 24, the RBI is conducting a three-year, $10 billion swap auction, injecting approximately ₹86,000 crore.
  • Similar swaps were conducted on February 28 and January 19 (a six-month, $5 billion swap).
• Variable Rate Repo (VRR) Auctions:
  • The RBI conducts daily VRR auctions, supplying money to banks at market-determined rates.
• Open Market Operations (OMOs):
  • In March, the RBI conducted ₹1 trillion worth of OMOs in two tranches (March 12 and March 18), buying government bonds from banks and providing liquidity.

Historical Context of Liquidity Cycles

• Tight liquidity phases (negative liquidity levels) occur during periods of tight monetary policy to combat inflation.
• Excess liquidity phases were seen post-2008 financial crisis and after COVID-19, when easy money policies were adopted.
• Currently, the RBI is attempting to promote growth by cutting rates, but liquidity shortages are preventing effective transmission.

Key Sources of Liquidity

• Cash Reserve Ratio (CRR):
  • In December, the RBI cut the CRR by 50 bps to 4%, releasing ₹1.12 trillion into the system.
  • Further scope is limited as the CRR floor is set at 3% by law.
• Open Market Operations (OMO):
  • RBI buys bonds to inject liquidity or sells bonds to absorb excess funds.
• Currency in Circulation & Government Surplus Cash:
  • During festivals, cash demand rises, tightening liquidity.
  • Government spending patterns also affect system liquidity.

The Healthiest Liquidity Source

• Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) bring in dollars, converting them into rupees.
• Recent data:
  • FIIs pulled out ₹34,574 crore in February 2025, totaling ₹1.12 trillion outflows in the first two months of 2025.
  • Since October 2024, the cumulative outflow is ₹2.12 trillion.
• Rupee Depreciation Factor:
  • Between October 2024 and February 2025, the rupee depreciated by over 4%, moving from ₹83.81 to ₹87.50 per dollar.
  • This deters foreign investments as US bonds offer 4.5% risk-free returns with lower currency risk.
• Rupee Recovery:
  • The rupee strengthened to ₹85.98 per dollar recently, which may signal a return of foreign investors as stability returns.

Liquidity Requirements: Appropriate, Adequate, or Abundant?

For rate cuts to be effective, the RBI needs to ensure adequate liquidity.

• If liquidity is infused via OMOs, the RBI’s rupee balance sheet expands.
• If liquidity is infused via dollar-rupee swaps, the RBI’s foreign currency reserves increase.

As of January, $82.6 billion of India’s $640 billion forex reserves were short-term buy-sell swaps, deferring ₹7.5 trillion in liquidity withdrawal.

With the dollar index falling from 110 to 104 and the rupee strengthening, a blend of OMOs and long-term swaps is the most effective liquidity management strategy.

What’s Next?

• Even if the RBI cuts rates further in April, without ample liquidity, borrowers will not feel the impact.
• The RBI will need to continue balancing OMOs, swap rollovers, and foreign inflow encouragement to maintain stability.
• The return of FIIs and FPIs will be the key turning point for liquidity normalization.

7. Paytm Faces Setback as Government Cuts UPI Incentives for FY25

Context:

The Cabinet has approved ₹1,500 crore incentives for FY25 to promote low-value Unified Payments Interface (UPI) transactions. This announcement has disappointed investors in One97 Communications Ltd (Paytm’s parent company).

• In FY24, total incentives for the UPI industry were ₹3,268 crore, nearly 80% higher than the previous year.
• With this drastic cut, expectations for FY25 were not met.

Impact on Paytm’s Earnings

Paytm’s share of incentives is currently unconfirmed, but concerns suggest a sharp decline.

• In FY24, Paytm earned ₹288 crore under the scheme, accounted for in Q4FY24.
• Following RBI’s action against Paytm Payments Bank in January 2024 and the government’s reduced allocation, Paytm’s UPI income could fall by around ₹150 crore for FY25.
• For perspective, Paytm reported an adjusted EBITDA loss of ₹772 crore (before ESOP) in 9MFY25.

Shifting Focus Beyond UPI Incentives

While this reduction is sentimentally negative, Paytm’s growth strategy is not reliant on UPI incentives alone.

• The company aims to build relationships with merchants and UPI users to cross-sell financial products like loan distribution, insurance, and stockbroking.
• In Q3FY25, revenue from financial services (₹502 crore) surpassed net payment margin (₹489 crore) for the first time.
• There was a 33% sequential growth in financial services income, indicating robust momentum.

Strong Growth in Loan Distribution

• Paytm has expanded its loan distribution partnerships with banks like HDFC Bank and ICICI Bank.
• This growth is fueled by offering Default Loss Guarantee (DLG), where Paytm guarantees compensation for loan defaults up to a certain percentage.
• Offering DLG can yield higher commissions, but also increases risk exposure for Paytm.
• Key metrics:
  • Take rate (commission on disbursed loans) rose from 7.1% in Q2FY25 to 9% in Q3FY25.
  • DLG-backed Assets Under Management (AUM) jumped from ₹1,651 crore to ₹4,244 crore, indicating elevated risk levels.

Cash Reserves and Risk Management

• Paytm’s strong cash position of ₹12,850 crore (as of Q3FY25) allows it to offer more competitive DLG terms.
• However, risk exposure could become problematic if loan defaults rise due to macroeconomic conditions or borrower-specific issues.

What Investors Should Monitor

• Going forward, loan distribution growth will be the key monitorable metric.
• UPI incentives are likely to become insignificant contributors to EBITDA in the future.
• While Paytm’s strategic cost management supports long-term profitability, its valuation remains expensive:
  • Price-to-Earnings (P/E) ratio: 43x
  • EV/EBITDA multiple: 36x (based on Bloomberg’s FY27 consensus estimates)

Focus Shifts from UPI Incentives to Financial Services

The reduction in UPI incentives is a short-term setback, but Paytm’s long-term growth hinges on financial services and loan distribution.
Investors should track AUM under DLG, default rates, and commission growth as these will drive the company’s future profitability.

8. Banks Block Indian Promoters’ Foreign NBFC Plans

Context:

Leading private sector banks are increasingly blocking overseas direct investment (ODI) proposals from Indian promoters aiming to set up offshore non-banking finance companies (NBFCs). The banks are concerned these offshore entities might circumvent foreign currency remittance limits and engage in activities that go against the spirit of ODI regulations.

Overseas Direct Investment (ODI)

Overseas Direct Investment (ODI) refers to investments made by Indian residents (individuals, companies, etc.) in foreign entities, such as acquiring equity capital or setting up subsidiaries abroad, regulated by the Foreign Exchange Management Act (FEMA). 

What is ODI?

• Definition
  • ODI involves investing in foreign entities, including acquiring unlisted equity capital, subscribing to a foreign entity’s memorandum of association, or investing 10% or more of the paid-up equity capital of a listed foreign entity. 
• Who can invest?
  • Indian residents, including individuals, companies, bodies corporate, LLPs, and partnership firms, can make ODIs. 
• Purpose
  • ODI allows Indian businesses to expand globally, diversify their operations, and access new markets. 

Regulatory Framework and Bank Concerns

• ODI rules, governed by the RBI and the government, permit Indian companies to invest abroad for bona fide business activities, excluding personal use, real estate trading, and rupee-linked financial products.
• Domestic NBFCs require RBI approval for ODI.
• Promoter-controlled investment entities are often categorized as NBFCs, triggering additional scrutiny from banks.
• Some banks are reluctant to move these applications to the RBI, often asking promoter entities to obtain prior approval, even when not mandated.

Why Banks Are Hesitant

• Larger capital outflows:
  • ODI allows remittance up to four times a company’s net worth, significantly more than the $250,000 cap under the Liberalized Remittance Scheme (LRS) for individuals.
  • Banks fear ODI may become a route for promoters to bypass LRS limits.
• Concerns over misuse:
  • Offshore NBFCs could potentially be used for personal expenses, property purchases, or wealth structuring.
  • While permitted under ODI if sponsored by an Indian entity, banks remain cautious.
• Interpretation gap:
  • Banks differ in their interpretation of what constitutes ‘bona fide business activity’.
  • Conservative stances are driven by regulatory caution and fear of future scrutiny.

Industry Feedback and Regulatory Grey Areas

• Inconsistent interpretations:
  • Some banks consider applications under the automatic route, while others treat similar proposals as requiring RBI approval.
  • Companies often urge banks to seek clarifications from RBI, which rarely happens.
• Practitioner insights:
  • “Banks should interpret regulations uniformly. Differences lead to confusion and stalled applications,” said Rajesh P. Shah, partner at Jayantilal Thakkar and Company.
• Regulatory mood:
  • Banks’ conservative stance is influenced by policy makers’ concerns over large capital outflows and asset diversification by the wealthy.

The growing tension between regulatory caution and promoter ambitions is leading to bank-level roadblocks for ODI in offshore NBFCs. While regulations allow such investments, interpretation discrepancies and conservative banking practices are making it increasingly difficult for Indian promoter groups to structure wealth or business investments abroad.

Source: The Economic Times

9. Banks Remain Cautious on Foreign Currency Deposits

Context:

Indian banks are showing caution in raising foreign currency denominated deposit rates, despite the Reserve Bank of India (RBI) offering greater flexibility to boost overseas capital inflows.

Foreign Currency Deposits

Foreign currency deposits, like those under schemes such as FCNR (Foreign Currency Non-Resident), allow individuals to invest in fixed deposits denominated in foreign currencies, offering potential for higher returns and protection from exchange rate fluctuations. 

Key Reasons for Caution

• Cheaper sourcing from global markets:
  • Banks are increasingly raising funds through syndication loans and global borrowings at competitive rates, making FCNR-B deposits less attractive.
  • “Softening interest rates in global markets have made it easier for domestic banks to raise US dollar funds,” said Ajay Kumar Srivastava, MD, Indian Overseas Bank.
• Static demand for foreign currency loans:
  • Domestic demand for foreign currency loans remains flat, reducing banks’ incentive to raise FCNR-B deposit rates.
  • Karur Vysya Bank MD, B Ramesh Babu, noted that the bank prefers alternative, cost-effective funding sources.

Inflow Data & Market Behavior

• FCNR-B deposit inflows remain subdued:
  • In December 2024, banks recorded just $58 million in FCNR-B deposit inflows.
  • Combined inflows for December and January were $612 million, down from $960 million in the preceding two months.
  • Peak inflows of $1.876 billion were recorded in September 2024.
• Rate adjustments have been minimal:
  • Banks such as Indian Overseas Bank have kept FCNR-B deposit rates unchanged since October 2024.
  • CSB Bank MD, Pralay Mondal, stated that current inflows sufficiently meet their foreign currency loan requirements.

RBI’s Measures and Impact

• In December 2024, the RBI raised the ceiling on FCNR-B deposit rates by 150 basis points to encourage capital inflows.
• This regulatory relaxation is effective until March 31, 2025.
• Mixed response from banks:
  • Federal Bank’s Executive Director, Shalini Warrior, mentioned steady growth from existing customers using FCNR-B deposits to hedge foreign currency risks.
  • However, banks have not aggressively raised rates, focusing instead on cheaper foreign borrowing avenues and existing stable demand.

Despite the RBI’s efforts to enhance foreign currency inflows through relaxed FCNR-B deposit rate caps, Indian banks continue to favor cheaper international funding sources and remain cautious due to static corporate demand for foreign currency loans. The trend suggests modest growth in FCNR-B deposits, with limited rate hikes in the near term unless market conditions change significantly.

Source: TET

10. P2P Lending Slows

Context:

The peer-to-peer (P2P) lending industry in India is facing a significant slowdown after the Reserve Bank of India (RBI) imposed stringent regulatory actions in 2024.

• The sector’s assets under management (AUM) have dropped sharply from around ₹10,000 crore to less than ₹3,000 crore in the past year.
• Large platforms such as LenDen Club, Liquiloans, Faircent, and Lendbox are struggling to continue operations, with most halting new loan disbursements.

Key Regulatory Actions

• In June 2024, the RBI introduced tighter guidelines prohibiting
  • Fixed return guarantees
  • Credit enhancement facilities
  • Non-compliance led to penalties, In August 2024, RBI fined Liquiloans and LenDen Club ₹1.9 crore each.
• The guidelines also introduced strict mandates such as T+1 settlements, which many platforms are struggling to implement, disrupting liquidity and operations.

Impact on Business Models and Fintech Partnerships

• Major consumer-facing fintech partners have begun winding down P2P collaborations:
  • BharatPe has exited the business
  • Cred has paused new investments
  • MobiKwik has scaled back borrower and lender onboarding
• P2P platforms previously relied on these fintechs for acquiring both borrowers and investors, fueling rapid growth until regulatory intervention.

Rising Bad Loans and Investor Concerns

• According to RBI’s response to a December 2024 RTI filed by Capitalmind:
  • Bad loans in the P2P sector stand at ₹1,163 crore.
  • While RBI had no official AUM data, industry estimates pegged it around ₹6,500 crore at that time.
• The sector is facing challenges in providing liquidity via secondary market transactions, which were previously a major attraction for investors.
  • The industry has requested RBI to allow secondary exits for investments made before August 2024 to protect investor interests.

The Indian P2P lending sector is grappling with regulatory overhang, shrinking AUM, and rising bad loans. Key platforms are facing existential threats as the RBI’s stricter compliance framework disrupts business models and fintech partnerships. The industry’s recovery will depend on future regulatory clarity, particularly around secondary market transactions and investor protection measures.

11. A Cautious Optimism

Key Positive Indicators

a) Rupee Stabilisation

• The rupee has strengthened from 87.5 (end-February) to just under 86 per dollar.
• This ends a six-month decline (Oct 2024–Feb 2025) when FPIs sold $22.7 billion in Indian equity and debt markets.
• The slowdown of FPI outflows and recovery of foreign exchange reserves to $654 billion-plus are encouraging signs.
• The merchandise trade deficit in February hit a 42-month low, further strengthening India’s external position.

b) Softening Inflationary Pressures

• February’s Consumer Price Index (CPI) rose by 3.6% YoY, below the RBI’s 4% target.
• Food inflation was modest at 3.75%, signaling relief from previous highs.
• Ground reports suggest a bumper rabi harvest, following:
  • Strong monsoons
  • Mild and short La Niña
  • Absence of severe heatwaves
• Key crops (wheat, chana, onion) are expected to have strong output.

Implications for the Economy

• Lower food inflation may enable the RBI to cut interest rates.
• Consumption is expected to rise, as households particularly low-income ones spend less on food and more on other goods and services.
• Macroeconomic stability is improving, but external risks remain.

Risks and External Threats

• Potential trade conflicts due to US President Donald Trump’s trade wars and possible reciprocal tariffs on Indian exports.
• Although markets appear to be ignoring these risks (Sensex up 5.4% from recent lows), these threats could destabilize trade flows.

Policy Recommendations

• The government and RBI must remain vigilant and cannot relax policy measures.
• Priorities should include:
  • Maintaining macroeconomic stability
  • Lowering interest rates cautiously
  • Ensuring adequate liquidity
  • Continuing fiscal consolidation
• Strong domestic policy frameworks are the best hedge against external shocks.

While the strengthening rupee, increasing forex reserves, and easing inflation present a welcome change, it is essential for policymakers to exercise caution. A focus on macroeconomic fundamentals, disciplined fiscal policies, and proactive risk management will ensure that India’s growth trajectory remains resilient in the face of external uncertainties.

The Indian Express

12. SEBI Board to Discuss Conflict-of-Interest Disclosure Framework

Context:

The Securities and Exchange Board of India (SEBI) is set to hold its first board meeting under new chairman Tuhin Kanta Pandey on March 24. Key topics on the agenda:

• Introduction of a conflict-of-interest disclosure framework for board members
• Proposal on the appointment process for key management personnel at market infrastructure institutions (MIIs), such as stock exchanges
• Plans to ease foreign portfolio investor (FPI) regulations

Background

• The discussion comes after allegations made against former SEBI chairperson Madhabi Puri Buch by Hindenburg Research and the Congress party.
• Both SEBI and Madhabi Puri Buch had denied all accusations.
• These allegations have intensified calls for greater transparency and accountability at the regulator’s highest level.

Expected Disclosure Framework

• The proposed framework is likely to mandate that SEBI board members and their spouses:
  • Disclose all assets to SEBI
  • Report any potential conflicts of interest proactively
• The framework aims to strengthen governance and credibility of SEBI’s decision-making process.

Other Key Proposals on the Board’s Agenda

a. Appointment Process for Key Management at MIIs

• The board is expected to discuss setting transparent guidelines for the selection and appointment of senior officials in:
  • Stock exchanges
  • Clearing corporations
  • Depositories

b. Easing Rules for FPIs

• Measures to relax norms for foreign portfolio investors are also expected, with the aim of:
  • Attracting global capital
  • Reducing procedural complexities for FPIs operating in India

This meeting will be a significant test of leadership for Tuhin Kanta Pandey, as SEBI seeks to:

• Enhance internal governance
• Improve regulatory credibility
• Encourage foreign investment in India’s capital markets

Economy

1. Impact of Donald Trump’s Policies

Context:

More than two months into Donald Trump’s presidency, both U.S. citizens and global stakeholders continue to grapple with the implications of his policies. Early economic projections from the U.S. Federal Reserve reflect growing uncertainty in key macroeconomic indicators.

Federal Reserve Projections

• Inflation: Expected to firm up.
• Economic Growth: Projected to slow down.
• Unemployment: Likely to increase in 2025.
• Monetary Policy: The Fed remains on track for rate cuts totaling 50 basis points in 2025, but the timeline could shift due to trade uncertainties.
• Jerome Powell’s Comments: The Fed Chairman highlighted high uncertainty, largely due to tariffs, which could delay achieving the 2% inflation target.

Trade and Tariff Uncertainty

• The biggest source of concern is the U.S.’s trade policy.
• Reciprocal tariffs set to be imposed on April 2 could significantly disrupt global trade.
• The complexity of implementing these tariffs could complicate both U.S. domestic and global trade policy.
• Tariffs may trigger price shocks, further affecting inflation expectations and business confidence.

Broader Policy Concerns

• Beyond trade, immigration policies are expected to have long-term consequences for the U.S. economy.
• The combination of tariffs and restrictive immigration policies adds to global and domestic uncertainty.

Implications for India

• Indian policymakers and investors need to prepare for continued short-term uncertainty.
• A U.S. trade delegation is visiting India this week to advance a proposed bilateral trade agreement, which will be closely monitored.
• Continuous diplomatic engagement with the U.S. will be critical for India.

The Trump administration’s policies, particularly on trade and immigration, are likely to continue disrupting global economic stability. While markets have adjusted to some extent, long-term clarity will only emerge once trade-related uncertainties are resolved. For India, proactive engagement and preparedness will be key in navigating this volatile global environment.

Agriculture

1. Parliamentary Panel Urges Increased Fertilizer Budget and Expansion of Nano Fertilizer Production

Context:

The Parliamentary Standing Committee on Chemicals and Fertilizers, chaired by Trinamool Congress MP Kirti Azad, has made several significant recommendations in its recent report on the Demands for Grants for 2025-26:

• Request for Additional Budget Allocation
  • The committee has urged the Union Fertilizers Ministry to seek additional funds at the revised estimate stage to prevent negative impacts on key subsidy schemes for farmers.
  • It expressed concern over the 7.38% budget cut made by the Ministry of Finance, reducing the department’s projected outlay from ₹1,84,704.63 crore to ₹1,71,082.44 crore.
• Expansion of Nano Fertilizer Production
  • The panel recommended speeding up the establishment of production units for nano urea and nano diammonium phosphate (DAP).
  • Field trials showed notable crop yield improvements when using nano urea, with peas showing up to 14.82% improvement and sugarcane the lowest at 4%.
  • Nano DAP trials indicated potential to reduce conventional granular DAP usage through seed treatment and foliar application.
• Focus on Self-Sufficiency in Fertilizers
  • While acknowledging agreements between Indian fertilizer companies and foreign suppliers, the committee pointed out that no mining lease agreements for domestic resource extraction or refining had been secured.
  • The report stressed that physical measures and targeted investment are critical for achieving self-reliance in fertilizer production.

Concerns Raised by the Committee

• Budgetary Reduction Impact:
  • Cuts in both the Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme could disrupt subsidy disbursement and implementation.
• Underutilisation of Funds in 2024-25:
  • 20% under indigenous phosphorus and potassium (PK) fertilizers.
  • 12% under imported PK fertilizers.
  • 14.76% under indigenous urea.
  • 59.57% under Market Development Assistance (MDA).
  • The committee called for better planning and full utilisation of allocated funds.

Strategic Recommendations

• Increase investments and secure mining leases for domestic extraction and production of fertilizer raw materials.
• Accelerate the setup of nano urea and nano DAP production facilities.
• Ensure that financial cuts do not hinder critical farmer subsidy schemes or fertilizer availability.
• Improve financial planning to eliminate underutilisation of allocated budgets in future fiscal cycles.

The committee’s report highlights the critical need for:

• Adequate funding for fertilizer subsidies.
• Strategic resource security measures.
• Timely scaling of nano fertilizer production.

These steps are pivotal to supporting Indian farmers, ensuring food security, and driving the country toward fertilizer self-reliance in line with the vision of Aatmanirbhar Bharat.

2. PDRL Launches Ag++ Flight Controller for Agri-Drones

Context:

PDRL, a key player in the Indian drone industry, has filed three additional patents. These filings bring PDRL’s total filings to six, including one already granted.

Key Developments

• Patent Filings:
  • PDRL has filed three additional patents, bringing its total patent filings to six, with one already granted.
  • The new patents cover innovations in:
    • Multi-farm spraying
    • Map calibration
    • Intelligent / smart spraying systems
• Future Plans:
  • PDRL plans to file five more patents in the next two quarters, reinforcing its commitment to technological advancement.

Focus on Agricultural Innovation

• The new technologies are aimed at improving drone-based agricultural operations by enhancing:
  • Accuracy
  • Efficiency
  • Automation
• These developments are expected to significantly benefit farmers and agribusinesses across India.

Launch of ‘Ag++’ Flight Controller

• PDRL has introduced Ag++, a flight controller designed specifically for agricultural applications.
• Ag++ is integrated with AeroGCS GREEN, PDRL’s software platform that currently supports:
  • Over 5,000 agriculture drones
  • More than 800,000 drone flights
• The solution is aimed at redefining agricultural drone missions with robust, user-friendly technology that ensures superior performance and operational excellence.

With ongoing patent filings and the launch of cutting-edge solutions like Ag++, PDRL continues to establish itself as a leader in India’s agricultural drone ecosystem, fostering innovation, operational reliability, and growth in agri-tech.

Business Line

3. Lulu Group Launches Global Agricultural Production Initiative in Pollachi

Project Overview

• Initiative Launch:
  • Lulu Group has launched a global agricultural production initiative in Pollachi to promote sustainable farming and empower local farmers.
  • The project is managed by Lulu’s Fair Exports division, focusing on procurement, production, packing, and global distribution through Lulu hypermarkets.

Key Highlights of the Initiative

• Land and Cultivation:
  • Seed planting began on 160 acres at Ganapathi Palayam, with cultivation starting on 50 acres in the initial phase.
  • Objective: To directly support local farmers and produce high-quality vegetables and fruits aligned with international standards.
• Crops under cultivation include:
  • Bananas
  • Coconuts
  • Drumsticks
  • Onions
  • Snake gourds

Commitment to Quality and Sustainability

• Lulu ensures that all produce meets global quality standards for export across its global retail network.
• Emphasis on organic farming practices, using natural fertilisers to maintain soil health and fertility.
• Focus on providing farm-fresh products to customers worldwide.

Integrated Farming Approach

• The initiative also includes sustainable fish farming.
• 5,000 fish fingerlings were introduced into local water bodies as part of integrated agricultural and aquaculture practices.

Through this initiative, Lulu Group is not only expanding its global supply chain with high-quality, farm-fresh produce but also contributing to the empowerment of local farmers and promoting sustainable, integrated farming practices in India.

Source: Business Line

Facts To Remember

1. Nitish flags off Bihar Divas events showcasing heritage

The five-day Bihar Divas celebrations began in the historic Gandhi Maidan here with Chief Minister Nitish Kumar formally inaugurating the event.

2. Walker Priyanka sets 35km National record

Commonwealth Games medallist race walker Priyanka Goswami set a National record in women’s 35km during the Dudinska 50 competition in Dudince, Slovakia.

3. Iniyan reigns in National rapid chess championship

GM Pa. Iniyan of Tamil Nadu won the National rapid chess championships in Ranchi on Sunday. The 22-year-old scored nine points, remaining undefeated with seven wins and four draws.

4. Agri Min Urges Transfer of Farm Tech from Labs to Fields

Agriculture minister Shivraj Singh Chouhan Saturday emphasised the need for faster transfer of farm technologies from labs to the fields to benefit farmers. 

5. Kotak Mahindra Bank appoints Bhavnish Lathia as CTO

Kotak Mahindra Bank’s board of directors, at their meeting on Saturday, appointed Bhavnish Lathia as the new Chief Technology Officer (CTO) and Vyomesh Kapasi as a member of the Group Management Council.

6. Govt notifies revised criteria for classifying MSMEs

The government has notified significant revisions to turnover and investment criteria for classifying MSMEs that will take effect from April 1. 

7. ₹144 Crore Disbursed to Farmers for Border Fencing Land: CM Omar Abdullah

In Jammu and Kashmir, Chief Minister Omar Abdullah today said that over 144 crore Rs. have been disbursed to farmers whose lands were affected by fencing along the International Border (IB).

8. India clinches both Men’s & Women’s Kabaddi World Cup 2025

 India has clinched both the Men’s and Women’s Kabaddi World Cup 2025 at Wolverhampton in England. The Men’s team defeated the home side England in the final match 44-41.

9. Khelo India Para Games: Jaspreet Kaur Sets National Record, Thrilling Wins in Powerlifting, Athletics, Shooting & Archery

The fourth day of the Khelo India Para Games brought excitement with tough games from powerlifters, athletes, archers, and shooters.

10. India Wins Silver in Women’s Doubles, Bronze in Men’s at ISTAF Sepak Takraw World Cup 2025

In the Doubles events category of the ISTAF Sepak Takraw World Cup 2025 at Patna, the Indian Women’s team showcased splendid gameplay by winning the silver medal. 

11. FPIs Slow Down Equity Outflows, Boost Debt Investments Amid Market Rebound

After nearly three months of relentless selling, Foreign Portfolio Investors (FPIs) moderated their outflows from Indian equities last week, contributing to a sharp rebound in the stock markets, buoyed by easing global concerns and growing optimism around a potential de-escalation in the Russia-Ukraine conflict.

12. Sagar Katale Wins Gold in Khelo India Para Games Shooting; Avani Lekhara Shines

In the shooting competitions being held under Khelo India Para Games at the Dr Karni Singh Shooting Range in New Delhi, Sagar Balasaheb Katale has clinched the gold medal in the 10M Air Rifle Prone Mixed SH1 category. Mona Agarwal secured silver, while Deepak Saini claimed the bronze medal in this category.

13. Nation Remembers Bhagat Singh, Rajguru & Sukhdev on Martyrs’ Day; PM Modi Pays Tribute

The Nation is paying homage to the three of its heroic revolutionaries of the Indian freedom struggle – Shaheed-E-Azam Bhagat Singh, Shivaram Rajguru and Sukhdev Thapar – who were executed at the Central Jail in Lahore on this day in 1931.