Daily Current Affairs (DCA) 29 October, 2025

Daily Current Affairs Quiz
29 October, 2025

National Affairs

1. Cloud-Seeding

Source: TOI

Context:

Amid rising pollution levels in the national capital, the Delhi Government, in collaboration with the Indian Institute of Technology (IIT) Kanpur, conducted cloud-seeding trials to induce artificial rain and reduce air pollution.

Cloud Seeding in India

• Cloud seeding is an artificial weather modification technique aimed at enhancing rainfall by dispersing substances into clouds to encourage precipitation.
• India has been experimenting with cloud seeding for drought-prone areas, water-scarce regions, and agricultural enhancement.

Key Features:

• Technology & Method:
  • Silver iodide or sodium chloride (salt) particles are dispersed into clouds using aircraft, drones, or ground-based generators.
  • Particles act as nuclei for water condensation, promoting rain formation.
• Outcomes & Challenges:
  • Mixed results: Some trials report modest increases in precipitation, others inconclusive.
  • Difficult to quantify the exact impact, as natural rainfall patterns fluctuate.
  • Environmental concerns: Potential impact of chemical agents on soil, water, and ecosystems.
  • Cost-effectiveness and long-term sustainability remain debated.
• Policy Perspective:
  • Cloud seeding is seen as a supplementary measure to tackle water scarcity.
  • Not a replacement for comprehensive water management, including groundwater recharge, rainwater harvesting, and efficient irrigation.
  • India may scale cloud-seeding trials, but with caution and scientific monitoring.

Key Terms

• PM2.5/PM10: Airborne particulate pollutants harmful to health.
• GRAP: Graded Response Action Plan, Delhi’s emergency air pollution management framework.

2. India and the ASEAN Summit

Source: News on Air

Context:

The recent ASEAN and East Asia Summits provided key platforms for regional cooperation and dialogue. However, Prime Minister Narendra Modi’s absence from the ASEAN-India Summit — for the second consecutive year — was seen as a missed diplomatic opportunity for India to reinforce its strategic and economic engagement with Southeast Asia.

Background

• India–ASEAN Relations:
  • India became a Dialogue Partner of ASEAN in 1995.
  • Partnership was upgraded to Summit level in 2002.
  • These summits offer India a platform to strengthen ties with Southeast Asian nations and discuss key Indo-Pacific issues.
• The East Asia Summit (EAS) includes major powers — the U.S., China, Russia, Japan, Australia, South Korea, New Zealand, India, and ASEAN countries — making it a critical platform for regional diplomacy.
• The revival of the Quad (Australia, India, Japan, U.S.) in 2017 occurred on the sidelines of an ASEAN summit, underscoring ASEAN’s diplomatic centrality.

Key Developments at the 2025 Summit

• Venue: Kuala Lumpur, Malaysia.
• Representation: India was represented by External Affairs Minister S. Jaishankar, as PM Modi skipped the summit. PM Modi Address Virtually.

ASEAN (Association of Southeast Asian Nations)

• Founded: 8 August 1967
• Founding Declaration: Bangkok Declaration
• Headquarters: Jakarta, Indonesia
• Purpose: Promote economic growth, regional stability, social progress, and cultural development among Southeast Asian countries.

Member Countries (10):

• Indonesia
• Malaysia
• Singapore
• Thailand
• Philippines
• Brunei
• Vietnam
• Laos
• Myanmar
• Cambodia

3. Climate Inequality Report 2025

Source: IE

Context:

• Released 2025, co-authored by Lucas Chancel and Cornelia Mohren of the World Inequality Lab.
• Title: “Climate Change: A Capital Challenge – Why Climate Policy Must Tackle Ownership”.
• Focus: Relationship between wealth concentration, capital ownership, and greenhouse gas emissions.

Key Findings:

• Wealth vs Consumption Impact on Emissions:
  • Ownership-based emissions (linked to wealth/capital):
    • Top 1% globally → 41% of emissions.
    • Top 10% in US, Germany, France → 3–5× higher than consumption-based estimates.
  • Consumption-based emissions:
    • Top 1% globally → 15% of emissions.
    • Example (top 1%): France 3%, Germany 2%, US 6%.
  • Per-capita emissions:
    • Top 1% emits ~680× more than bottom 50% via ownership.
    • Via consumption approach → ~75× more.
• Climate Inequality and Wealth Concentration:
  • If wealthy individuals make and own all climate-related investments, top 1% wealth share could rise from 38.5% → 46% by 2050.
  • Wealth concentration and climate damage exacerbate both social and economic inequality.

Policy Recommendations:

• Carbon-Adjusted Wealth Tax:
  • Tax wealth based on carbon content of assets rather than consumption.
  • Progressive: discourages high-carbon investments, finances green transition.
  • Example: €150/tonne carbon tax → Revenue:
    • France: €36B, Germany: €74B, US: $534B.
• Ban on New Fossil Fuel Investments:
  • Restrict domestic dirty investments (exploration, extraction).
• Public Investment in Low-Carbon Infrastructure:
  • Shared public ownership (national, local, cooperative).
  • Boosts resilient energy systems and reduces inequality.
• Redirect Capital Flows:
  • Encourage shift from high-carbon to low-carbon assets via fiscal and regulatory measures.

4. 8th Central Pay Commission

Context:

The Union Cabinet has formally approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), which will recommend revisions in salaries, allowances, and pension benefits for Central government employees. The announcement marks a crucial step in India’s periodic pay rationalisation framework, last implemented through the 7th CPC in 2016.

8th Central Pay Commission (CPC)

• The 8th Central Pay Commission is a temporary body constituted by the Union Government of India to review and recommend revisions to the salary structure, allowances, and pension benefits of Central Government employees and pensioners.
• Purpose:
  • To ensure fair and updated compensation for government employees.
  • To consider economic conditions, fiscal prudence, and employee welfare.
  • To suggest improvements in service conditions and emoluments.
• Constitution and Leadership:
  • The 8th CPC was announced in January 2025 and has now been officially constituted.
  • Chairperson: Justice Ranjana Prakash Desai (Retd.)
  • Part-time Member: Prof. Pulak Ghosh, Indian Institute of Management (IIM) Bangalore
  • Member-Secretary: Pankaj Jain, Petroleum Secretary

Terms of Reference (ToR):

The 8th CPC will make recommendations keeping in view:

• The overall economic conditions and the need for fiscal prudence.
• Availability of resources for developmental and welfare expenditure.
• The unfunded liabilities arising from non-contributory pension schemes.
• The impact of recommendations on State finances.
• Comparison of emoluments and working conditions with employees in Central PSUs and the private sector.

5. UN Report Warns Global Emission Reductions are Insufficient for Paris Goals

Context:

Ahead of COP30 in Belem, Brazil, the United Nations released a synthesis report assessing countries’ updated nationally determined contributions (NDCs) for emission reductions. The report finds that current commitments are far below the levels needed to meet the Paris Agreement’s temperature targets.

Key Highlights:

• Emission Reduction Gap:
  • Countries are projected to reduce emissions by only 17% by 2035 (from 2019 levels).
  • Required reductions to meet Paris targets:
    • 37% by 2035 to limit warming to 1.5°C
    • 57% by 2035 to limit warming to 2°C
• NDC Submissions:
  • Only 64 out of 190 countries submitted updated NDCs by September 30, 2025.
  • India is yet to submit its updated NDC since August 2022.
• Focus Beyond Mitigation:
  • 73% of new NDCs include adaptation measures (adjusting to climate impacts).
  • NDCs also address finance, technology transfer, capacity building, and loss & damage, reflecting the comprehensive scope of the Paris Agreement.
• Projected GHG Reductions:
  • Total projected GHG emissions in 2035: ~13 billion tonnes CO₂ equivalent, only 6% below previous NDCs.
• Key Domestic Measures & Options Needing Support:
  • Afforestation and reforestation
  • Solar energy expansion
  • Tripling global renewable energy capacity by 2030
  • Enhancing low-carbon hydrogen production
  • Expanding Carbon Capture Utilisation and Storage (CCUS)

Banking/Finance

1. Sebi Seeks Details After MCX Trading Disruption

Source: BS

Context:

The Multi Commodity Exchange of India (MCX) faced a four-hour trading disruption on October 28, 2025, prompting the Securities and Exchange Board of India (SEBI) to seek details. This marks the second opening delay in four months at the largest commodities exchange in India.

About Multi Commodity Exchange of India (MCX)

• MCX is India’s largest commodity derivatives exchange, where trading of various commodity futures contracts takes place. It provides a platform for hedging, price discovery, and risk management for commodities like metals, energy, and agricultural products.
• Established:
  • Year: 2003
  • Headquarters: Mumbai, Maharashtra
• Ownership & Regulation:
  • Regulated by: Securities and Exchange Board of India (SEBI)
  • Operates as a demutualized exchange, meaning ownership and management are separate from trading membership.
• Products Traded:
  • Metals: Gold, Silver, Copper, Aluminum, Lead, Zinc
  • Energy: Crude Oil, Natural Gas
  • Agriculture: Cotton, Cardamom, Mentha Oil, and others
• Key Functions:
  • Price Discovery: Provides transparent market-driven prices for commodities.
  • Hedging: Helps producers, consumers, and investors manage price risk.
  • Investment Opportunity: Allows retail and institutional investors to participate in commodity markets.
  • Market Infrastructure: Provides electronic trading, clearing, and settlement mechanisms.

2. Small Finance Banks (SFBs)

Context:

Crisil Ratings projects that advances of Small Finance Banks (SFBs) will exceed ₹2 trillion in FY26, marking a 16–17% year-on-year growth, up from 13% in FY25. The growth is driven by non-microfinance segments and a gradual recovery in microfinance loans.

Small Finance Banks (SFBs)

Purpose

• Promote financial inclusion and expand banking to underserved sections:
  • Small businesses, micro-enterprises, marginal farmers, low-income households.
• Complement mainstream banks by providing niche credit.

Regulatory Framework

• Regulator: Reserve Bank of India (RBI)
• License: On-tap licensing under RBI guidelines
• Minimum Capital: ₹200 crore
• Compliance: CRAR, liquidity ratios, priority sector lending norms

Functions

• Deposits: Savings, current, term deposits
• Loans & Advances:
  • Microfinance (priority sector)
  • Small business loans, housing loans, vehicle loans
  • Retail and commercial loans
• Payments & Remittances: Digital banking, UPI-enabled services

Key Features

• Priority Sector Lending: ≥75% of adjusted net bank credit
• Deposit Limit: ₹2 lakh per individual
• Focus Areas: Microfinance, small business loans, rural banking
• Digital Adoption: Strong use of UPI and mobile banking

3. SEBI Proposes Overhaul of Mutual Fund Regulations

Context:

The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing sweeping changes to mutual fund (MF) regulations. The reforms aim to revamp the Total Expense Ratio (TER) structure, enhance transparency in investor charges, and ease business restrictions on Asset Management Companies (AMCs).

Key Highlights:

TER Structure and Transparency

• Definition of TER expanded:
  To include all costs — base expense ratio, brokerage, exchange fees, regulatory fees, and statutory levies.
• Disclosure requirement:
  AMCs must disclose a complete cost breakdown in the all-inclusive TER, giving investors a full picture of charges.
• Brokerage cap:
  • Cash market: Reduced from 0.12% (12 bps) to 0.02% (2 bps)
  • Derivatives: Reduced from 0.05% (5 bps) to 0.01% (1 bps)
    → Prevents investors from being charged multiple times for overlapping services.
• Removal of additional distribution expense:
  The long-standing provision allowing AMCs to charge an extra 5 bps for distributor commissions and marketing expenses will be scrapped.

Open-Ended Scheme Adjustments

• To offset reduced distribution margins, SEBI proposed a 5 bps upward revision in the first two TER slabs for small open-ended active funds.
• Statutory levies (like STT, GST, and stamp duty) will be excluded from the TER cap, ensuring future tax changes are passed directly to investors.

Relaxation of AMC Business Restrictions

• Regulation 24(b) review: SEBI proposes allowing AMCs to offer investment management and advisory services to non-pooled funds (for large institutional clients).
• Conditions:
  • Creation of ‘Chinese walls’ (internal separation of units)
  • Key employee segregation
  • Direct reporting to AMC CEO
    → Intended to prevent conflict of interest and align India’s AMC framework with global practices.

Differential Expense Ratio and Operational Reforms

• Performance-linked TER: AMCs may be allowed to voluntarily link TER to scheme performance.
• New Fund Offers (NFOs):
  Launch-related costs up to unit allotment must be borne by the AMC, not charged to investors.
• Winding-up costs defined:
  Includes custodian and audit fees, but excludes advisory or investment fees.
• Trustee meetings:
  Frequency to be reduced from six to four per year.

Review of Mutual Fund Structure

• SEBI invited comments on the existing three-tier MF structure — comprising the Sponsor, Trustee, and AMC.
  Suggestions include allowing corporate or LLP-based fund structures and potentially replacing trustees with independent oversight.
• Industry experts like Jimmy Patel (Quantum MF) and D.P. Singh (SBI MF) welcomed the proposals, citing improved efficiency and international alignment.

Objective and Expected Impact

• Investor Benefit:
  Lower costs, simpler disclosures, and enhanced transparency.
• Industry Benefit:
  Greater operational flexibility, diversification of AMC activities, and efficiency through digital and non-retail advisory expansion.
• Regulatory Goal:
  Build a transparent, competitive, and globally aligned mutual fund ecosystem in India.

Key Terms Explained

Term	One-Line Explanation
TER (Total Expense Ratio)	Annual percentage of fund assets charged to cover management and operational costs.
AMC (Asset Management Company)	Entity that manages mutual fund schemes and investor money.
AUM (Assets Under Management)	Total market value of assets a fund manages on behalf of investors.
Basis Point (bps)	One-hundredth of a percent (0.01%), used for precise fee or rate measurement.
Chinese Wall	Internal barrier preventing conflict of interest between two business units.
Non-Pooled Fund	Investment vehicle serving large, specific clients rather than public investors.
NFO (New Fund Offer)	Initial launch phase of a mutual fund scheme to raise capital from investors.

4. RBI Eases Rules for External Commercial Borrowings

Source: Mint

Context:

The Reserve Bank of India (RBI) recently proposed sweeping relaxations in rules for Indian companies to borrow overseas through External Commercial Borrowings (ECBs). ECBs are foreign currency or rupee-denominated loans raised from non-resident lenders, used for capital expenditure, refinancing, and working capital.

Key Relaxation Measures Explained

1. Increased Per-Tranche Borrowing Limits

• Earlier, Indian entities had a limit on how much they could borrow per transaction (tranche) under the automatic route.
• The RBI has now raised these limits, allowing companies to mobilise larger amounts in a single tranche without needing prior RBI approval.
• Impact:
  • Reduces procedural delays.
  • Enables quicker access to capital for large projects or refinancing needs.

2. Removal of Cost Caps on ECB Interest Rates

• Previously, ECBs had an interest rate ceiling — generally capped at a certain spread over the benchmark rate (like SOFR or LIBOR).
• The RBI has removed or relaxed these cost caps, giving borrowers and lenders freedom to negotiate interest rates based on market conditions.
• Impact:
  • Makes Indian borrowers more attractive to global investors.
  • Offers greater flexibility in structuring loans.

3. Flexibility in Currency Usage

• Borrowers can now raise funds in multiple currencies and switch between rupee-denominated and foreign currency bonds.
• This flexibility allows better management of foreign exchange risk and hedging costs.
• Impact:
  • Encourages diversification of funding sources.
  • Reduces currency exposure risks for corporates.

4. Simplified Procedures for Accessing Overseas Funds

• The RBI has streamlined procedural approvals under the Automatic Route, reducing documentation and compliance burdens.
• Certain sectors and end-use restrictions have been liberalised, allowing broader use of ECB proceeds for business expansion or refinancing.
• Impact:
  • Faster capital inflow.
  • Easier access for smaller corporates and NBFCs.

Key Terms

Term	Explanation
ECB (External Commercial Borrowing)	Loans in foreign currency raised by Indian entities from non-resident lenders (like banks, institutions, or capital markets).
Automatic Route	Borrowing mechanism where no prior RBI approval is required if conditions are met.
Tranche	A portion or installment of a total borrowing amount raised at one time.
SOFR (Secured Overnight Financing Rate)	Benchmark interest rate replacing LIBOR for US dollar loans.
Currency Conversion	The process of switching loan denomination from one currency (e.g., USD) to another (e.g., INR).

5. Bank Merger

Context:

The Union Finance Ministry is preparing a new blueprint for consolidation of public sector banks (PSBs) as part of ongoing banking reforms. The aim is to increase scale, operational efficiency, and capital deployment, not merely size. The timeline is expected to follow FY27, with due diligence and cost-benefit analysis underway.

Key Proposed Mergers:

Banks Under Consideration	Rationale / Notes
Union Bank of India + Bank of India	Would create the second-largest PSB with assets of ₹25.67 trillion, just behind SBI; focus on scale and efficiency.
Indian Overseas Bank + Indian Bank	Operational synergies, complementary geographies, similar customer base and product portfolio, rationalization of branches and back-end functions.

What is a Bank Merger?

A bank merger is the consolidation of two or more banks into a single entity to improve financial stability, efficiency, and competitiveness.
In such cases, one bank (the acquiring bank) absorbs the other(s), and all assets, liabilities, and operations of the merged bank(s) are transferred to it.

Purpose of Bank Mergers

• Strengthening Balance Sheets – to create large, financially stable banks.
• Operational Efficiency – reduces duplication of branches and improves economies of scale.
• Capital Optimization – better allocation of capital and reduction in cost of funds.
• NPA Management – allows stronger banks to absorb weaker ones and clean up stressed assets.
• Improved Credit Flow – larger banks can fund bigger projects and boost credit availability.
• Technological Synergy – integration of digital infrastructure and expertise.

RBI’s Role and Norms in Bank Mergers

The Reserve Bank of India (RBI) acts as the regulatory authority overseeing all bank mergers in India to ensure financial stability and depositor protection.

1. Legal Framework

• Governed by the Banking Regulation Act, 1949, particularly Sections 44A and 45.
• In case of public sector banks, mergers are carried out under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980 and require Cabinet approval on recommendation of the Finance Ministry.
• For private banks, the merger must be approved by RBI after the Boards of both banks and shareholders consent.

2. RBI Approval Process

RBI follows a multi-step approval process for bank mergers:

Stage	Process
a. Proposal Stage	The banks submit a merger proposal to RBI with details of valuation, capital structure, and synergy plan.
b. Due Diligence	RBI evaluates the financial health, governance standards, and compliance history of both banks.
c. Valuation and Share Swap Ratio	Independent valuation experts decide how shares of merging entities will be exchanged.
d. Draft Scheme of Amalgamation	A draft scheme is submitted to RBI, outlining terms of merger, treatment of employees, branches, and depositors.
e. Public Notification	RBI may invite objections/suggestions from stakeholders.
f. Final Approval	RBI grants final sanction under Section 44A, and the scheme is notified in the Gazette of India.

Key RBI Norms and Guidelines

• Fit and Proper Criteria: Both banks must have sound financials, governance standards, and compliance records.
• Capital Adequacy: Post-merger CRAR (Capital to Risk-weighted Assets Ratio) must meet minimum regulatory standards (as per Basel III norms, currently 11.5% including buffers).
• NPA Level Check: Merging banks’ asset quality and provisioning are carefully assessed to avoid systemic risks.
• Shareholder Protection: Shareholders of both banks must be given fair value through an independent valuation process.
• Employee Safeguards: Service conditions and pension rights of employees must be protected.
• No Adverse Impact on Depositors: RBI ensures continuity of depositor access and safety of funds.
• Post-Merger Compliance: The merged bank must submit reports on capital position, integration progress, and governance.

Types of Bank Mergers

Type	Description	Example
Voluntary Merger	Initiated mutually by both banks with RBI approval.	HDFC Ltd with HDFC Bank (2023)
Forced/Directed Merger	Ordered by RBI/Government to protect depositors or stability.	Punjab & Maharashtra Cooperative Bank with Unity SFB (2022)
Public Sector Bank (PSB) Merger	Initiated by the Government of India with RBI oversight.	Oriental Bank of Commerce + United Bank of India → PNB (2020)

Example (Recent Major Mergers)

Year	Merged Banks	Merged Entity
2017	SBI and its 5 associate banks	State Bank of India
2019	Vijaya Bank + Dena Bank + Bank of Baroda	Bank of Baroda
2020	PNB + OBC + United Bank of India	Punjab National Bank
2020	Canara Bank + Syndicate Bank	Canara Bank
2020	Indian Bank + Allahabad Bank	Indian Bank

6. RBI’s New Nomination Rules for Bank Accounts and Lockers

Context:

The Reserve Bank of India (RBI) has issued revised directions on the nomination facility available for deposit accounts, safe deposit lockers, and articles kept in safe custody.
These guidelines aim to simplify claim settlements and ensure ease of access for nominees after the account holder’s death, while maintaining customer freedom of choice.

Key Highlights:

1. Applicability

• Effective Date: 1 November 2025
• Covered Entities:
  • Deposit Accounts (Savings, Current, Fixed Deposits, etc.)
  • Safe Deposit Lockers
  • Articles in Safe Custody with Banks

2. Nomination – Not Mandatory

• Banks must inform customers about the availability and advantages of the nomination facility.
• However, opting for a nomination is entirely voluntary.
• No account opening can be denied or delayed if a customer chooses not to nominate.

3. Customer Declaration

• If a customer does not wish to nominate, they must provide a written declaration to that effect.
• If the customer refuses to provide a written declaration, the bank shall record this refusal in its system.
• Banks cannot impose restrictions or delay account opening on this ground.

4. Multiple Nominees (As per Banking Laws Amendment Act, 2025)

• Customers can nominate up to four simultaneous nominees for their account or locker.
• The percentage of entitlement/share for each nominee must be clearly specified.
• Successive nominations are permitted — meaning the next nominee becomes operative only after the previous nominee’s death.

5. In Case of Nominee’s Death

• If a nominee dies before receiving the deposit or asset, that nomination becomes ineffective.
• The settlement of such deposits will follow rules applicable to accounts without nominees.

6. Bank Obligations

• Banks must maintain proper systems to:
  • Register nominations
  • Record cancellations
  • Update variations as per customer requests
• Nomination details should be clearly reflected in bank records and confirmed to the customer.

7. Claim Settlement Simplification

• The primary objective is to facilitate expeditious and hassle-free claim settlement for nominees/legal heirs.
• Helps prevent legal complications or delays after the account holder’s demise.

Objective of the Revised Framework

• Enhance ease of banking for customers and their families
• Ensure uniformity and transparency across all banks
• Balance customer autonomy with operational efficiency

7. SIDBI Outlook Survey on MSMEs

Source: ET

Context:

• The Small Industries Development Bank of India (SIDBI) released its fourth MSME Outlook Survey for July–September 2025 (Q2 FY26). The survey assesses the performance and confidence levels of India’s micro, small, and medium enterprises (MSMEs) through structured indicators.
• It uses two indices:
  • M-BCI (MSME Business Conditions Index)
  • M-BEI (MSME Business Expectations Index)
    Both indices range from 0 to 100; a value above 50 indicates optimism.

Key Findings

• The M-BCI fell slightly to 61.64 in Q2 FY26 from 63.75 in the previous quarter — showing a mild dip in business confidence, though still well above the 50-threshold.
• The M-BEI is expected to improve to 62.26 in the next quarter and 66.57 one year ahead (July-Sept 2026), supported by stronger domestic demand and policy measures such as GST rate cuts.
• Sales sentiment:
  • Manufacturing: 47% of firms reported positive growth.
  • Trading: 50% reported positive growth.
  • Exports: Only 43% saw growth now; 56% expect recovery.
• Costs and capacity:
  • Among manufacturing firms, the share facing higher finance costs fell from 41% to 33%.
  • Capacity utilisation: 25% of manufacturing firms were operating above normal capacity in the current quarter; expected to rise to 36% next year.
• Ease of Doing Business (EoDB) & compliance: Over 60% of MSMEs expect improvement in permits, compliance, and power supply in the next year.
• Challenges:
  • Awareness of Quality Control Orders (QCOs) remains low.
  • Service-sector firms continue to face credit access issues.

Significance

• MSMEs remain resilient despite slight moderation in confidence.
• Expectations of improved conditions reflect optimism about recovery and policy support.
• The findings highlight the need to strengthen exports, quality compliance, and credit access to sustain growth.

Agriculture

1. Cabinet Approves ₹37,952 Crore Fertilizer Subsidy for Rabi 2025-26 Season

Source: ET

Context:

The Union Cabinet has approved a fertilizer subsidy of ₹37,952 crore for the Rabi (winter) season 2025-26, ensuring timely availability of key nutrients such as nitrogen (N), phosphorus (P), potash (K), and sulphur (S) for farmers. The decision aims to stabilise fertilizer prices and support agricultural productivity amid fluctuating global import costs.

Key Highlights:

• Total Subsidy: ₹37,952 crore for Rabi 2025-26 — an increase of ₹14,000 crore compared to the previous Rabi season (₹24,000 crore in 2024-25).
• Period of Applicability: From October 1, 2025 to March 31, 2026.

Subsidy Structure (per kg of nutrient):

• Nitrogen (N): ₹43.02 (unchanged from Kharif 2025)
• Phosphorus (P): ₹47.96 (up from ₹43.60 during Kharif 2025)
• Potash (K): ₹2.38 (unchanged)
• Sulphur (S): ₹2.87 (up from ₹1.77 during Kharif 2025)

About the Nutrient Based Subsidy (NBS) Scheme

• Launched: April 2010.
• Administered by: Department of Fertilizers.
• Objective: To promote balanced fertilizer use and soil health management by providing subsidies on nutrients rather than specific fertilizer brands.
• Mechanism:
  • Subsidy is fixed per kilogram of N, P, K, and S content.
  • Manufacturers sell fertilizers at market rates after accounting for government subsidy.
• Types of Fertilizers Covered:
  • DAP (Di-Ammonium Phosphate)
  • MOP (Muriate of Potash)
  • NPK Complex fertilizers
  • SSP (Single Super Phosphate)

Facts To Remember

1. Manush and Diya make it to the WTT Finals

India’s Manush Shah and Diya Chitale qualified for the mixed doubles event of the WTT Finals, to be held in Hong Kong from December 10 to 14. No Indian in any category has made it to the WTT Finals since it was introduced in 2021.

2. Indian squad for World Boxing Cup Finals named

The Indian contingent for the season-ending World Boxing Cup Finals next month was announced here with crucial ranking points on offer.

3. Comprehensive GST Reforms Underway to Ease Compliance

The Central Board of Indirect Taxes and Customs (CBIC) is finalising a major overhaul of GST processes to simplify compliance, improve transparency, and ensure faster fund releases, especially for MSMEs and small businesses.