Daily Current Affairs (DCA) 4 July, 2025

Daily Current Affairs Quiz
4 July, 2025

National Affairs

1. National Sports Policy 2025

Context:

The Union Cabinet has approved the National Sports Policy (NSP) 2025, replacing the 2001 policy. It aims to transform India into a global sporting powerhouse and prepare the nation for the 2036 Olympics.

What is National Sports Policy 2025?

It is a comprehensive national framework designed to:

• Promote sports excellence from grassroots to elite levels
• Boost participation and inclusivity
• Integrate sports with economy, education, technology, and governance

The policy follows a whole-of-government and multi-stakeholder implementation model.

Key Features of NSP 2025 (Crisp)

1. Excellence on Global Stage
   • Early talent ID & grassroots-to-podium model
   • Elite training at SAI centres with AI & sports science
2. Sports as Economic Driver
   • Promotes sports tourism, local manufacturing (e.g., Meerut)
   • Supports startups via PPPs, CSR, innovation hubs
3. Social Inclusion & Traditional Sports
   • Tailored schemes for women, tribals, PwDs
   • Revival of Indian games like Kho-Kho, Mallakhamb
4. Sports as People’s Movement
   • Mass campaigns: Khelo India, Fit India
   • National fitness indices for institutions
5. Education Integration (NEP 2020)
   • Sports in curriculum with trained PE staff
   • Dual-career paths for student-athletes
6. Strategic Implementation
   • KPI-based national monitoring system
   • AI-driven state governance; use of wearables, big data

2. IISc Launches BHARAT Study to Build India-Specific Biomarkers for Healthy Ageing

Context:

The Indian Institute of Science (IISc) Bengaluru has launched the BHARAT Study to create India-specific reference values for healthy ageing biomarkers. This effort aims to reduce misdiagnosis and improve geriatric care by addressing the limitations of Western-centric medical benchmarks.

What is Healthy Ageing?

Healthy ageing is the process of maintaining physical, mental, and functional well-being in later life. It prioritizes quality of life over mere longevity. Biological age—reflected in organ function or cellular markers—often differs from chronological age.

Key Data & Trends on Ageing in India

• By 2050, 20% of India’s population (approx. 319 million) will be 60+ (UNFPA India).
• Disease burden: Parkinson’s cases may rise 168%, and dementia by 200% (Lancet, 2024).
• Only 28% of the elderly receive formal pension support (NSSO 75th round).
• Less than 5% of Primary Health Centres have geriatric outpatient services (MoHFW).
• Gender disparity: Women outlive men but suffer more disability-adjusted life years (DALYs).

Features of Healthy Ageing

• Functional independence in daily tasks (e.g., cooking, walking).
• Resilience to stress, such as surgery or infections.
• Good mental health with low social isolation and depression.
• Use of preventive biomarkers like CRP, HDL, and metabolite levels.
• Culturally adapted health standards rather than universal Western benchmarks.

Why India Needs a Contextual Approach

• Faster ageing transition than OECD peers (e.g., Kerala’s elderly dependency rate to hit 35%).
• Western lab norms often misinterpret Indian metabolic profiles (e.g., B12 deficiency).
• Social security void: <20% elderly covered under old age pension schemes.
• Rural-urban divide in access to geriatric wards and transport.
• Weakened family care due to nuclearisation of households.

Challenges to Healthy Ageing

• Data scarcity: Most available biomarkers are based on Western studies like NHANES.
• Cultural reluctance to medical screening among tribal and rural elders.
• Low budget priority: NPHCE underfunded within NHM.
• Sampling bias: Difficulty in finding healthy elderly for baseline samples.
• Early-life disease burden skews adult ageing trajectories.

Key Initiatives

• BHARAT Study (IISc): India’s first bio-bank on ageing biomarkers, focusing on local genetic, nutritional, and environmental factors.
• NPHCE: Offers geriatric clinics and home-based care.
• LASI (Longitudinal Ageing Study in India): Tracks elder health and functional decline.
• RSBY / AB PM-JAY: Health insurance for age-related diseases.
• Medical education: Geriatrics included in MBBS and AYUSH specialisations.

TH

3. NITI Aayog Report on Chemical Industry

Context:

NITI Aayog has released a strategic roadmap titled “Chemical Industry: Powering India’s Participation in Global Value Chains (GVCs)”. The report envisions India becoming a global chemical powerhouse with 12% GVC share and USD 1 trillion output by 2040.

Current Landscape of India’s Chemical Industry

• Global Rank: 6th largest producer globally; 3rd in Asia.
• GDP Contribution: 7% of manufacturing GDP; supports pharma, textiles, agriculture, construction.
• Fragmentation: MSME-dominated; lacks integrated clusters and infrastructure.
• GVC Participation: Only 3.5% global share; trade deficit of USD 31 billion (2023).
• Import Dependence: High reliance on China for APIs and Gulf for feedstock.
• Regulatory Challenges: Long delays in environmental clearances (12–18 months).
• Skill Gaps: 30% shortfall in trained professionals in green chemistry and nanotech.

Opportunities Identified

• Green Chemistry Demand: Eco-friendly chemical demand rising globally.
• China+1 Strategy: Global firms looking for alternatives to China.
• FTAs Leverage: Trade pacts with UAE, EU, ASEAN open export potential.
• PLI Schemes & Parks: Government support via PLI, PCPIRs, mega chemical clusters.
• Employment Potential: 7 lakh skilled jobs possible by 2030.

Challenges Facing the Sector

• Feedstock vulnerability, outdated clusters, high logistics costs.
• Regulatory bottlenecks and policy inconsistency.
• Poor academia-industry interface and low patent output.

NITI Aayog Key Recommendations

1. Mega Chemical Clusters:
   • Upgrade existing clusters (e.g., Paradeep, Dahej, Vizag).
   • Chemical Infrastructure Fund & empowered committees.
2. Opex Subsidy:
   • Incentives based on import substitution and export growth.
3. R&D and Tech Transfer:
   • DST-led interface for academia-industry collaboration.
   • Support tech transfer from global players.
4. Regulatory Reforms:
   • Simplify Environmental Clearances via DPIIT committee.
   • Enhance transparency.
5. Skilling Initiatives:
   • Expand ITIs, create courses in polymer science and process safety.
6. Trade Facilitation:
   • Include chemical-specific provisions in FTAs.
   • Simplify documentation and origin certification.

Mint

Banking/Finance

1. FinMin Urges PSBs to Ramp Up Branch Expansion Amidst Private Bank Competition

Context:

The Union Finance Ministry has directed public sector banks (PSBs) to accelerate physical branch expansion to compete with the aggressive network growth of private banks and small finance banks (SFBs), despite strong digital adoption.

Key Highlights:

• Branch Expansion Drive:
  • PSBs were asked to identify high-potential locations and open more branches, especially in underserved and semi-urban/rural areas.
  • The goal is to counterbalance the expansion by private banks and SFBs, and to enhance customer trust through a “phygital” model (physical + digital).
• Special Focus:
  • Finance Ministry urged banking infrastructure expansion in the Northeast, where branch density is low.

BS

2. AMFI Seeks ₹250 Chhoti SIP Rollout Plans from Fund Houses After SEBI Nudge

Context:

To promote small-ticket investing and deepen mutual fund penetration, the Securities and Exchange Board of India (SEBI) has nudged AMFI (Association of Mutual Funds in India) to push for the rollout of ₹250 micro-SIPs under the Chhoti SIP initiative.

Key Highlights:

• SEBI’s Initiative:
  • First proposed in a January 2025 consultation paper.
  • Aimed to financialise savings and expand retail participation in mutual funds.
  • Proposed cost subsidies for fund houses to absorb onboarding and transaction-related costs for low-ticket investments.
• AMFI’s Response:
  • On June 27, AMFI sent a letter to all fund houses asking for their plans to launch ₹250 SIPs.
  • The move comes as over two-thirds of fund houses are yet to introduce these offerings.
• Current Status:
  • Top 15 AMCs (by AUM) have already reduced minimum SIP sizes—some as low as ₹100.
  • However, ₹250 SIPs specifically qualify under SEBI’s proposed subsidised framework.
  • The final circular from SEBI is still awaited, adding to market uncertainty.
• Implementation Challenges:
  • The SEBI framework limits subsidy eligibility to only the first three ₹250 SIPs per investor.
  • AMCs report technical and procedural hurdles in verifying investor eligibility during onboarding.
  • If SIPs are launched at any other amount, subsidy benefits won’t apply.

Association of Mutual Funds in India (AMFI)

Association of Mutual Funds in India (AMFI) is an Indian trade association for all the asset management companies of SEBI registered mutual funds in India.

BS

3. New Consumer Price Index (CPI) Series

Context:

India is preparing to roll out a new Consumer Price Index (CPI) series aimed at enhancing the accuracy and responsiveness of inflation measurement, by widening the coverage of goods/services and updating the base year.

Key Highlights:

Broader and Granular Representation

• The new CPI series will:
  • Expand the basket of goods and services to reflect evolving consumption patterns.
  • Correct under-representation of services, which currently distorts inflation signals.
  • Capture regional variations, offering granular insights into rural vs urban inflation and inter-state price divergences.

Methodological Overhaul

• Proposed upgrades include:
  • Enlarged sample size for greater statistical reliability.
  • Technology-based data collection, including use of AI and eCommerce platforms.
  • Better weight allocation techniques to avoid bias in the absence of micro-level data.

Integration of AI in Price Measurement

• AI enables:
  • Real-time, low-cost, and high-frequency data harvesting.
  • Tracking price pressure build-ups and evaluating the impact of trade policies.
  • Modelling of price rigidity and transmission lag, aiding better macroeconomic policy design.

Significance

• A more representative CPI will:
  • Improve the accuracy of monetary policy (especially inflation targeting).
  • Enable quicker responses to price shocks.
  • Help in diagnosing supply-side bottlenecks effectively.
• AI-led modelling offers a paradigm shift in the way CPI and inflation dynamics are tracked, potentially placing India at the forefront of data-driven economic governance.

TET

4. DSP Launches India’s First Retail Offshore Mutual Fund from GIFT City

Context:

India has officially opened the door to retail-focused offshore mutual funds with the launch of DSP Mutual Fund’s Global Equity Fund on June 2, 2025, from GIFT City (Gujarat International Finance Tec-City). This marks a regulatory milestone, enabling resident Indians to invest globally without relying on offshore brokerages, while sidestepping the Reserve Bank of India’s overseas investment caps applicable to SEBI-regulated mutual funds.

Key Highlights:

First Retail Global Fund Under GIFT City’s New 2025 Framework

• Launched by: DSP Mutual Fund
• Minimum investment: $5,000
• Fund type: Open-ended global equity mutual fund
• Eligible investors: Indian residents (NRIs excluded), via Liberalised Remittance Scheme (LRS)
• Investment cap: Subject to individual $250,000 LRS limit
• NFO period: Open for 30–40 days; continuous acceptance thereafter

Why It Matters

• Not under SEBI’s $7 billion overseas limit, which has paused many global feeder funds
• Leverages GIFT City’s international jurisdiction, enabling direct retail participation
• Promises simplified taxation, regulatory transparency, and broader access to global markets

Implications

• Enables diversification without feeder funds
• Creates competition for offshore platforms like US-based brokerages
• Supports India’s ambition to become a financial gateway through GIFT City
• Reflects SEBI and IFSCA’s push for liberalizing outbound retail flows

Mint

5. RBI Bans Pre-Payment Charges on Floating Rate Loans for Individuals and MSEs

Context:

The Reserve Bank of India (RBI) has prohibited pre-payment charges on floating rate loans extended to individuals and Micro & Small Enterprises (MSEs), effective from January 1, 2026. The move aims to promote greater borrower flexibility, ensure fair lending practices, and eliminate anti-competitive barriers in credit markets.

Key Highlights:

Who Benefits?

• Individuals
• Micro & Small Enterprises (MSEs)
  → Loans for business or personal purposes

What Loans are Covered?

• Floating rate term loans and demand loans
• Sanctioned or renewed on or after January 1, 2026
• Includes loans with co-obligants
• Dual rate loans (fixed + floating): Charges barred only if floating at time of pre-payment

Institutions Covered

No Prepayment Charges Allowed for the Following:

1. Commercial Banks (excluding Payment Banks, SFBs, RRBs, LABs)
2. Co-operative Banks (Tier 4 Urban Co-op Banks with deposits > ₹10,000 crore)
3. NBFCs – Upper Layer (NBFC-UL)
4. All India Financial Institutions (AIFIs)

No Exceptions on Pre-Payment Source

• Applies to partial or full pre-payments
• Applies regardless of whether borrower uses own funds or external funds
• No lock-in period needed

What is Not Allowed?

• Charging fees when prepayment is initiated by the lender
• Imposing retrospective prepayment charges after waivers were granted earlier

Why This Move?

• RBI’s review highlighted:
• Restrictive and inconsistent prepayment practices
• Grievances from MSE borrowers
• Barriers to refinancing and competitive borrowing

Legal Basis

RBI exercised powers under:

• Banking Regulation Act, 1949: Sections 21, 35A, and 56
• RBI Act, 1934: Sections 45JA, 45L, and 45M
• National Housing Bank Act, 1987: Section 30A

The Indian Express

6. Mashreq Bank Gets In-Principle Nod to Open IBU at GIFT City, Gujarat

Context:

Mashreq Bank, one of the leading financial institutions in the UAE, has received in-principle approval (IPA) to set up an International Financial Services Centre Banking Unit (IBU) at GIFT City in Gujarat, making it the first UAE-based bank to achieve this milestone.

Key Highlights:

• Regulatory Milestone:
  • Mashreq Bank secured in-principle approval from the International Financial Services Centres Authority (IFSCA).
  • Approvals have also been obtained from the UAE Central Bank and the Special Economic Zone (SEZ) Authority.
• Expected Launch:
  • The IBU is expected to become operational by Q4 2025, subject to final regulatory clearances.
• Premises & Staffing:
  • Branch location at GIFT City has been finalized.
  • Recruitment for key positions is underway.

Services to be Offered by Mashreq’s GIFT City IBU

• Foreign Currency Loans
• Trade Finance Solutions
• Treasury and Risk Management Products

These offerings will allow Mashreq to serve multinational clients more efficiently across time zones and regulatory jurisdictions.

Strategic Significance

• This marks a key development in India-UAE financial cooperation.
• Enhances GIFT City’s position as a preferred destination for global banking operations.
• Positions Mashreq to capitalize on cross-border financing and international trade flows via India’s IFSC ecosystem.

TET

Agriculture

1. KisaanSay to Partner with 500 FPOs Under Co-Branded Profit-Sharing Model

Context:

KisaanSay, a B2C agribusiness company that sources food products directly from farmers, is scaling up its partnership with Farmer Producer Organisations (FPOs) across India to boost farmer incomes and supply chain efficiency.

Key Highlights:

• Expansion Plan:
  • KisaanSay plans to collaborate with 500 FPOs over the next 4–5 years, up from 20 currently engaged.
• Profit Sharing Model:
  • FPOs will handle production and bear associated costs, while KisaanSay will manage marketing and sales. Profits will be split 50:50 under a co-branded model.
• Current Reach:
  • The company has reached 50,000 farmers through its network and offers over 100 farm-based products.
• Supply Chain Strategy:
  • Products are first packed by FPOs and sent to a central warehouse. To reduce logistics costs, regional distribution hubs will be set up across India.
• Revenue Potential:
  • Each participating FPO could earn up to ₹4 crore annually, with some already crossing ₹50 lakh in turnover.
• Platform Presence:
  • KisaanSay’s products are available on major platforms like Amazon, Blinkit, Zepto, BigBasket, Reliance Jio, and soon on Flipkart.
• International Plans:
  • The company is finalizing export deals with Dubai for both online and offline sales.
• Government Support:
  • KisaanSay shared its model during a weekly webinar organised by the Union Agriculture Ministry, initiated by Secretary Devesh Chaturvedi.

Why It Matters:

This model directly connects farmers to consumers, promotes value addition at source, and supports rural entrepreneurship. It also aligns with India’s agri-export goals and digital retail penetration.

BL

2. One-Nation-One-Licence for Micro-Fertiliser Manufacturers Amid Over-Regulation

Context:

The Indian Micro Fertilisizers Manufacturers Association (IMMA) has called for a complete overhaul of India’s fertiliser regulatory regime, citing high compliance costs, excessive inspections, and outdated provisions under the Fertiliser Control Order (FCO).

Key Highlights:

• Industry Demand:
  • IMMA has urged the Centre to implement a “One Nation, One Licence” policy for micro-fertiliser manufacturers to eliminate the need for separate state-level licences.
• Outdated Framework:
  • IMMA President Rahul Mirchandani said the Fertiliser Control Order (FCO) has outlived its original intent, similar to how FERA was replaced with FEMA to reflect a liberalised economy.
• Compliance Burden:
  • Over-regulation leads to compliance costs of 8–15%, passed on to farmers. Micronutrient fertilisers require multiple registrations, state depots, and face frequent inspections.
• Growth Sector:
  • Micronutrient fertilisers are one of the fastest-growing segments in Indian agriculture, with FY2025 consumption at 6.35 lakh tonnes and a 7.1% CAGR, mainly driven by cereals and grains.
• Recommendations:
  • Pan-India valid licence
  • Eliminate state-wise sale permissions
  • Centralised digital product registry
  • Rationalise local inspector powers
  • Align compliance with IGST regime

Why It Matters

The fertiliser industry plays a key role in agricultural productivity. Rationalising outdated regulations and streamlining compliance can boost domestic production, lower prices, and reduce reliance on imports.

BL

Facts To Remember

1 Title: Centre to Begin Signature Process for Motion to Remove Justice Yashwant Varma

Date: 4 July 2025

Context:

Ahead of the Monsoon Session of Parliament (starting July 21), the Central Government is preparing to initiate a motion seeking the removal of Justice Yashwant Varma of the Allahabad High Court following the discovery of burnt currency notes at his official residence.

2. 3 Apache combat helicopters to arrive in India by July 15

Following the India-U.S. Defence Ministers’ dialogue, the long-awaited Apache combat helicopters are to be delivered in the next two weeks.

3. Nvidia becomes worlds most valuable firm

Nvidia hit a market value of $3.92 trillion in intraday trade on Thursday, as Wall Street doubled down on optimism about artificial intelligence (AI).

4. RBI announces seven-day rate reverse repo auction on 4 July

The Reserve Bank of India (RBI) saiD it will conduct a seven-day variable rate reverse repo auction worth ₹1 trillion on 4 July, after a review of liquidity conditions in the banking system. 

5. PM Modi Conferred Ghana’s Highest Honour: ‘The Officer of the Order of the Star of Ghana’

During his visit to Accra, Prime Minister Narendra Modi was awarded Ghana’s highest civilian honour and addressed a joint session of the Ghanaian Parliament, emphasizing India’s solidarity with the Global South.