Daily Current Affairs Quiz
3 September, 2025
National Affairs
1. Global Peace Index (GPI) 2025
Source: ET
Context:
In the 19th edition of the Global Peace Index (GPI) 2025, released by the Institute for Economics and Peace (IEP), Singapore has been ranked the safest country in Asia and 6th globally. India is ranked at 115th position with a score of 2.229. The index evaluates 163 countries based on safety, ongoing conflicts, and militarisation.
What is the Global Peace Index (GPI)?
- Definition: An annual ranking of countries on peacefulness.
- Coverage: 163 states and territories, representing 99.7% of the world’s population.
- Published by: Institute for Economics and Peace (IEP), an international think tank headquartered in Sydney, Australia.
Indicators and Methodology
GPI evaluates countries on 23 indicators grouped into 3 domains:
- Societal Safety & Security – crime rates, political stability, refugee/displacement impact.
- Ongoing Domestic & International Conflict – terrorism, civil unrest, war involvement.
- Militarisation – defence expenditure, weapons imports/exports, size of armed forces.
GPI 2025 – Global Trends and Rankings
- Most Peaceful Nations:
- 1st – Iceland (retains top spot).
- Followed by Ireland, New Zealand, Finland, Austria, Switzerland, Singapore, Portugal, Denmark, Slovenia.
- Least Peaceful Nations:
- Russia, Ukraine, Sudan, DR Congo, Yemen.
- Regional Highlights:
- Europe dominates the top 10.
- South America shows improvements (Argentina, Peru).
- Sub-Saharan Africa & Middle East remain the least peaceful regions.
- Global average peacefulness declined due to militarisation, wars, and geopolitical divides.
India in GPI 2025
- Rank: 115th out of 163 countries.
- Score: 2.229 (improved by 0.58% compared to 2024).
- Positives:
- Decline in domestic violence and community disputes.
- Better societal stability indicators.
- Challenges:
- High militarisation levels.
- Ongoing cross-border tensions.
- Sporadic internal unrest and protests.
2. Semiconductor & India’s Vision
Context:
At the 4th SEMICON India Conference (Sept 2025), PM Narendra Modi outlined India’s ambition to emerge as a “full-stack semiconductor nation”, covering the entire chip value chain from design and fabrication to packaging and innovation.
What are Semiconductors?
- Materials with conductivity between conductors (like copper) and insulators (like glass).
- Their electrical properties can be controlled by doping, temperature, and voltage.
- Key material: Silicon (others: gallium arsenide, germanium).
Applications of Semiconductors
- Electronics: Smartphones, laptops, televisions.
- Automotive: EVs, ADAS (driver-assistance systems), navigation, batteries.
- Telecom: 5G infrastructure, optical communication.
- Defense & Aerospace: Radars, satellites, navigation systems.
- Healthcare: Medical imaging, diagnostics, wearables.
- Artificial Intelligence (AI) & Cloud: High-performance computing, data centers.
India’s Current Status
- Strengths:
- Strong in chip design – major firms (Intel, Qualcomm, AMD, NVIDIA) have R&D centers in India.
- Skilled workforce in electronics & IT.
- Weaknesses:
- No large-scale commercial semiconductor fab (fabrication plant) yet.
- Heavy import dependence (India imports >90% of chips).
- Government Push:
- Semicon India Programme (2021): $10B incentive scheme for fabs, ATMP (assembly, testing, marking & packaging), and design.
- India Semiconductor Mission (ISM): Launched in December 2021 with an outlay of ₹76,000 crore. First semiconductor project cleared within 18 months of Cabinet approval.
- Micron Technology: Setting up a semiconductor assembly & test facility in Gujarat.
- Partnerships: Vedanta-Foxconn, ISMC, and others in talks.
- Target: India to become a global hub for semiconductor manufacturing & design by 2030.
Banking/Finance
1. Government’s Draft Norms Ease Compliance for Foreign Investment in Insurance Sector
Source: BS
Context:
The government has issued draft amendments to the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2015, aimed at reducing compliance hurdles and making India’s insurance sector more attractive to global investors.
Key Highlights:
Relaxed Residency Requirement
- Proposal to remove the clause mandating a majority of directors and key management persons (KMPs) be resident Indian citizens in companies with significant foreign investment.
- Retained clause: At least one among the Chairperson, Managing Director, or CEO must be a resident Indian.
Board and Governance Conditions
- If foreign investment exceeds 49%, then:
- 50% of the board must comprise independent directors.
- Companies must maintain higher net profit and solvency safeguards.
- These conditions, experts noted, had earlier deterred global investors even after the FDI cap was raised from 49% to 74% in 2021.
Capital and Dividend-Related Changes
- Proposed wording change:
- Replace “to exceed 74% of paid-up equity capital” with “to exceed the limit as stipulated by the Insurance Act, 1938.”
- Seen as a precursor to raising the FDI cap to 100%, as announced in the Union Budget.
- Dividend Retention Clause Removed:
- Earlier, insurers with foreign investment had to retain dividends in reserves if solvency margin was <1.2x the control level.
- Now, no such restriction, companies can repatriate dividends freely without regulator’s approval.
2. SEBI Introduces Intraday Position Framework for Equity Index Options
Source: Mint
Context:
On September 2, 2025, SEBI announced a new entity-level framework to monitor intraday positions in equity index options, effective October 1, 2025. The move aims to curb risky expiry-day bets and enhance market stability.
What are Equity Index Options?
- Equity Index Options are derivative contracts that allow traders to take positions on stock indices (like Nifty 50, Bank Nifty) without buying or selling the actual stocks.
- They are widely used for hedging, speculation, and arbitrage.
What are Intraday Positions?
- Intraday position means the exposure a trader or entity builds within a single trading day.
- Positions are squared off (closed) before the end of the day, but during the day, they can be very large.
- Intraday monitoring is critical because sharp moves on expiry days (when contracts expire) can create volatility risks.
Key Features of the Framework
- Net Intraday Position Limit: ₹5,000 crore (up from existing end-of-day ₹1,500 crore).
- Gross Intraday Position Limit: ₹10,000 crore per side (buy and sell separately), same as end-of-day.
- Monitoring: Exchanges to capture at least four random snapshots daily, including one between 2:45 pm–3:30 pm (peak volatility).
- Penalties: Breaches on expiry days will attract penalties or additional surveillance deposits from December 6, 2025.
- Exemptions: Higher limits for entities with underlying exposure above ₹5,000 crore.
- Implementation: Joint SOP for intraday monitoring to be issued by exchanges within 15 days.
Keywords
- Net Position: Overall directional bet (long minus short).
- Gross Position: Total exposure (buy + sell sides combined).
- Delta-Based Monitoring: Measures sensitivity of option price to index movement. (But misses risks from gamma and vega).
Why It Matters
- Market Stability: Prevents sudden large expiry-day positions causing volatility.
- Investor Protection: Shields retail participants from manipulation and abrupt swings.
- Expiry Day Changes: Comes as NSE shifted weekly index option expiry to Tuesday, BSE to Thursday, altering trading dynamics.
- Regulatory Vigilance: Triggered by Jane Street case, where SEBI alleged market manipulation in Bank Nifty options worth ₹4,843.57 crore gains.
3. No Insurance Licence to VC-backed Fintechs: IRDAI
Source: ET
Context:
The Insurance Regulatory and Development Authority of India (Irdai) has toughened its stance against granting insurance manufacturing licences to venture capital-backed fintech startups. The regulator believes such startups are better suited for insurance distribution, not manufacturing.
Venture Capital-backed Fintech Startups
- Fintech startups = Young companies that use technology to provide financial services (like payments, lending, insurance, wealth apps, etc.). Example: PhonePe, Razorpay, Policybazaar.
- Venture capital (VC) = Money invested by professional investors or funds into startups that show high growth potential. These investors take risk early in the business in return for possible high profits later.
- So, a VC-backed fintech startup is a young financial technology company that runs on money raised from venture capital funds.
Why IRDAI is Concerned?
- Making (manufacturing) insurance means creating and underwriting insurance products—this needs big capital, long-term stability, and risk management skills.
- VC-backed startups usually:
- Focus on fast growth.
- Depend on external funding.
- May not have long-term stability (since VCs often exit in a few years).
4. Suryoday Small Finance Bank Launches Secured Credit Cards
Source: Mint
Context:
Suryoday Small Finance Bank (SSFB) has introduced secured credit cards designed to expand credit accessibility for first-time users by leveraging fixed deposits as collateral. The offering targets homemakers, retirees, and individuals new to credit, encouraging responsible credit habits.
Key Features:
- Card Variants:
- Suryoday SFB RuPay Select Credit Card
- Suryoday SFB RuPay Platinum Credit Card
- Collateral & Credit Limit:
- Cards are secured against fixed deposits.
- Minimum fixed deposit:
- Platinum: ₹1,000
- Select: ₹1,11,500
- Digital Integration:
- Linked with RuPay and UPI platforms
- Instant virtual card issuance available
About Suryoday Small Finance Bank (SSFB)
- Founded: 2008 as Suryoday Micro Finance in Chennai, Tamil Nadu.
- Transition: Became a Small Finance Bank in 2017 to promote financial inclusion.
- Headquarters: Mumbai, Maharashtra; serves over 2.8 million customers.
- Services: Savings accounts, fixed deposits, MSME loans, rural financing, and digital banking.
5. The Council of Insurance Ombudsman (CIO) 2023-24 Report
Source: ET
Context:
The Council of Insurance Ombudsman (CIO) 2023-24 report highlights rising complaints against health insurers in India. Policyholders have increasingly approached the Ombudsman due to claim delays, partial or complete repudiations, and other service issues.
Key Highlights:
- Top Insurers by Complaints:
- Star Health & Allied Insurance – 13,308 complaints (10,000+ related to claim rejections)
- CARE Health Insurance – 3,718 complaints
- Niva Bupa Health Insurance – 2,511 complaints
- Public Sector Insurers in Top 5:
- National Insurance Co. Ltd – 2,196 complaints
- The New India Assurance Co. Ltd – 1,602 complaints
- Observation:
- The top three insurers with the most complaints are all stand-alone health insurers.
IRDAI Internal Ombudsman Initiative
- Objective: Resolve complaints for claims up to Rs 50 lakh internally within insurers.
- Scope: Handles complaints unresolved within 30 days or partially/wholly rejected complaints.
- Limitations:
- Excludes pending court, consumer forum, or Ombudsman cases.
- IO reports to the MD/CEO administratively, raising concerns about impartiality.
Agriculture
1. BHARATI Initiative
Source: News on Air
Context:
The Agricultural and Processed Food Products Export Development Authority (APEDA) has launched the BHARATI initiative to support 100 agri-food startups and enhance India’s agri-food export potential.
What is BHARATI?
- Bharat’s Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement.
- Type: A national startup-support and export-acceleration platform for India’s agri-food and agri-tech ecosystem.
- Launch Authority: APEDA (Agricultural and Processed Food Products Export Development Authority) under the Ministry of Commerce & Industry.
- Support: Backed by the Ministry of Food Processing Industries, aligned with Startup India and Atmanirbhar Bharat.
Objectives
- Support and empower 100 agri-food and agri-tech startups.
- Achieve $50 billion agri-food exports by 2030.
- Foster innovation in production, processing, packaging, and logistics.
Key Features
- Startup Cohort: Selection of 100 startups through APEDA’s website (applications open September 2025).
- Acceleration Programme: 3-month training on product development, export readiness, compliance, and global market access.
- Innovation Focus: High-value GI products, organic foods, superfoods, livestock products, AYUSH-linked foods.
- Technology Integration:
- AI-based quality checks.
- Blockchain-enabled traceability.
- IoT-driven cold chain solutions.
- Agri-fintech tools for export financing.
- Problem Solving: Tackles key export barriers—perishability, wastage, logistics, packaging, and quality assurance.
- Awareness Campaign: National-level outreach to engage startups, investors, and agri-export stakeholders.
2. Horticulture as a Growth Engine
Source: BS
Context:
A recent RBI Bulletin research article highlights that India’s agricultural debate is shifting from staples (rice, wheat) to high-value crops such as fruits and vegetables. Horticulture is emerging as a key pathway to higher incomes, rural employment, and nutritional security, especially for small and marginal farmers.
Why Horticulture Matters
- India’s Position: World’s second-largest producer of fruits and vegetables (after China).
- Higher Returns: Horticulture provides greater value realisation per hectare compared to cereals.
- Employment: Labour-intensive, supporting rural jobs.
- Changing Diets: Rising demand for fruits and vegetables due to higher incomes, health awareness, and dietary diversification.
Challenges in Diversification
- Productivity Concerns
- Stagnant or declining yields in crops like grapes and sapota (1992–93 to 2021–22).
- Vulnerability to climate variability (e.g., unseasonal rains damaging perishable crops).
- Market Volatility
- Boom-bust cycles of tomatoes, onions, and potatoes harm farmers and consumers alike.
- Weak price discovery and absence of collective bargaining worsen distress sales.
- Post-Harvest Losses
- Annual food wastage and inefficiencies valued at ₹1.5 trillion.
- Inadequate cold chains, storage, refrigerated transport, and agro-processing facilities.
- Trade Risks
- Horticultural exports face tariff barriers (e.g., recent US tariffs).
- Limited market diversification exposes India to global policy shocks.
Solutions and Policy Pathways
- Technology and Innovation
- Weather prediction tools, better advisories, and intercropping techniques from global research institutions (CGIAR).
- Public investment in R&D and extension services to boost productivity.
- Market Reforms
- Strengthen Farmer Producer Organisations (FPOs) for aggregation and price negotiation.
- Expand digital platforms for transparent price discovery.
- Encourage fair contract farming for assured pricing.
- Post-Harvest & Supply Chain
- Investment in cold storage, transport, and processing units to cut wastage.
- Adopt World Resources Institute’s Target–Measure–Act framework to reduce food loss.
- Trade & Branding
- Diversify exports to West Asia, Africa, Southeast Asia.
- Build premium value through GI tags (e.g., Alphonso mango, Nagpur orange).
- Upgrade food safety and quality standards to enhance competitiveness.
Facts To Remember
1. PM Modi receives first Made in India Vikram 32-bit chip
Union Minister for Electronics & Information Technology Ashwini Vaishnaw presented Prime Minister Narendra Modi a memento containing the ‘Made in India’ Vikram 32-bit Processor Launch Vehicle Grade chip at the Semicon India 2025.
2. Bima Sugam Phase-I likely in December
The first phase of Bima Sugam the insurance regulators ambitious project to create an Amazon-likeone-stop digital platform for insurance policies is likely to be launched in December, according to people familiar with the development.
3. India Post Payments Bank (IPPB) Marks 8th Foundation Day
On 1st September 2025, India Post Payments Bank (IPPB) marked its 8th Foundation Day, celebrating its role in delivering inclusive, accessible, and affordable banking services across rural, semi-urban, and remote regions.
