Daily Current Affairs (DCA) 6 June, 2025

Daily Current Affairs Quiz
6 June, 2025

National Affairs

1. Ayush Nivesh Saarthi Portal

Why in News?

• On 29th May 2025, the Government of India launched the Ayush Nivesh Saarthi portal at the Ayush Stakeholder/Industry Interaction Meet at Vanijya Bhawan, New Delhi.
• Jointly unveiled by:
  • Shri Piyush Goyal, Union Minister of Commerce & Industry
  • Shri Prataprao Jadhav, MoS (IC), Ministry of Ayush

About Ayush Nivesh Saarthi Portal

• Purpose: A digital, investor-focused platform for promoting investments in India’s Ayush (Ayurveda, Yoga, Unani, Siddha, and Homeopathy) sector.
• Developed by: Ministry of Ayush in collaboration with Invest India
• Target Users: Domestic and global investors interested in the traditional medicine and wellness ecosystem

Key Features

• Investor Facilitation: Provides real-time support and streamlined interface for project guidance
• Policy Access: Consolidates central and state-level policy frameworks, incentives, and approval procedures
• Investment Opportunities: Lists investment-ready Ayush projects
• Transparency & Ease of Doing Business: Offers real-time data, policy clarity, and a unified interface for approvals and schemes

Significance

• Economic Growth:
  • Supports 100% FDI in Ayush via automatic route
  • Catalyzes job creation, MSME participation, and startup incubation
• Global Wellness Leadership:
  • Positions India as a hub for natural and holistic health systems
  • Aligns with the growing global demand for preventive, natural healthcare
• Support to Medical Value Travel (MVT):
  • Ayush is a key contributor to India’s $13 billion MVT sector
• Sectoral Growth:
  • Ayush sector recorded 17% CAGR (2014–2020)
  • Leverages India’s biodiversity: over 8,000 medicinal plant species

2. Ek Ped Maa Ke Naam 2.0

Why in News?

• On World Environment Day 2025, Union Education Minister Dharmendra Pradhan launched Ek Ped Maa Ke Naam 2.0, along with:
  • Eco Clubs for Mission LiFE Web Portal
  • Microsite for Ek Ped Maa Ke Naam 2.0
  • Special Environmental Education Modules for schoolchildren

Key Highlights

Launch Details

• Venue: New Delhi

Objectives of the Campaign

• Inspire tree plantation in honour of mothers
• Promote environmental consciousness among school students
• Integrate climate awareness and sustainable living into the curriculum through NEP 2020

Special Modules

• Launched for Preparatory, Middle, and Secondary stages
• Focus on:
  • Parallels between mothers and Mother Earth
  • Establishing Eco Clubs for Mission LiFE
  • QR Codes for flora and School Nutrition Gardens
  • Activity-based learning: puzzles, field assignments, hands-on tasks

Eco Clubs for Mission LiFE

• Align with 7 key themes of Mission LiFE (e.g., energy, waste, water, biodiversity)
• Target: Coverage in 14.7 lakh schools
• Mandate to establish Eco Clubs in all schools by 29th July 2025 (NEP 2020 anniversary)

Web Portal & Microsite Features

• Portal: https://ecoclubs.education.gov.in
• Features:
  • Multilingual interface
  • School-specific dashboards to track activities
  • Upload selfies of tree plantation with mothers
  • E-certificate generated upon participation
  • Real-time monitoring & impact analysis

3. Waste Picker Enumeration App Launched under NAMASTE Scheme (MoSJE)

Why in News?

• On World Environment Day 2025, the Ministry of Social Justice & Empowerment (MoSJE) launched the Waste Picker Enumeration App under the NAMASTE Scheme in New Delhi.
• Aimed at ensuring dignity, inclusion, and safety for India’s informal waste workforce.

Major Announcements & Features

Waste Picker Enumeration App

• Digital profiling of 2.5 lakh waste pickers across India
• Enables:
  • Formal occupational ID cards
  • Ayushman Bharat (PM-JAY) health insurance
  • PPE kits, skill training & capital subsidies
  • Integration into urban waste management systems

About the NAMASTE Scheme

Full Form: National Action for Mechanised Sanitation Ecosystem
Launch Year: July 2023
Type: Central Sector Scheme

Purpose:

• Eliminate manual scavenging and hazardous sanitation work
• Promote mechanized, safe, and skilled sanitation services
• Extend coverage to sewer workers, septic tank cleaners, and now waste pickers

Expanded NAMASTE Scheme Scope

• Earlier focus: Sewer and Septic Tank Workers (SSWs)
• Expanded in June 2024 to include Waste Pickers
• Implemented jointly by MoSJE & MoHUA
• Executing agency: NSKFDC (National Safai Karamcharis Finance & Development Corporation)

Objectives of Expanded NAMASTE Scheme

• Recognize Waste Pickers as critical agents of India’s circular economy
• Ensure:
  • Occupational safety & health
  • Social protection & entitlements
  • Livelihood security
  • Collective empowerment through management of 750 Dry Waste Collection Centers (DWCCs)

Significance

• Promotes environmental justice, inclusive urban governance & formalization of informal workers
• Supports Mission LiFE, Swachh Bharat Mission 2.0, and Sustainable Development Goals (SDGs):
  • SDG 1 (No Poverty)
  • SDG 3 (Good Health & Wellbeing)
  • SDG 8 (Decent Work)
  • SDG 11 (Sustainable Cities)

4. India-U.S. Bilateral Trade Agreement (BTA)

Context:

India is actively negotiating an early tranche of the proposed Bilateral Trade Agreement (BTA) with the United States to protect key export sectors from punitive tariffs. This move is driven by a scheduled 26% reciprocal tariff hike on July 9, 2025, and the need to restore competitiveness for Indian goods affected by previous US trade actions.

Key Objectives of India’s Proposal

• Tariff Reversal Commitment: India seeks a binding US commitment to revert to pre-April 2 tariff levels on key labour-intensive products.
• Affected Product Categories:
  • Apparel
  • Leather
  • Footwear
  • Gems and jewellery
• These goods were subjected to an additional 10% tariff under former US President Donald Trump’s administration, raising effective duties from low single digits to double digits.

India’s Strategic Proposal

• Since the US administration currently lacks Congressional mandate to implement tariff cuts, India is proposing a “post-dated cheque” clause:
  • The BTA should include a paragraph stating that once Congressional authorisation is granted, the US will reduce tariffs to zero on labour-intensive goods, subject to future negotiations.
  • This will help lock in intent and provide policy predictability for exporters.

Urgency of an Early Tranche

• A 26% reciprocal tariff by India is scheduled to come into effect on July 9, 2025, which would further escalate trade costs.
• India is pushing for an early phase of the BTA to be finalised before this date to prevent tariff retaliation and maintain trade momentum.

Challenges and US Position

• The US has clarified that it cannot immediately cut tariffs due to the lack of Congressional approval.
• However, ongoing negotiations aim to build consensus around a future commitment, conditional on Congressional support.

Strategic and Economic Significance

• Restoring pre-2018 tariff regimes would reinforce bilateral trust and address India’s trade imbalance with the US.
• It would also contribute to inclusive and sustainable economic growth by supporting labour-intensive, export-oriented industries in India.

5. EnviStats India 2025

Released by: Ministry of Statistics and Programme Implementation (MoSPI)
Framework Used: Framework for the Development of Environment Statistics (FDES 2013)

Why in News?

8th edition of EnviStats India 2025: The 8th edition of EnviStats India 2025 was released by MoSPI on 5 June 2025, reflecting a structured statistical profile of India’s environment.

Key Environmental Indicators and Trends

Energy Generation Trends

• Thermal Power: Increased from 7.92 lakh GWh (2013–14) to 13.26 lakh GWh (2023–24)
• Renewable Energy: Rose from 65,520 GWh to 2.25 lakh GWh in the same period

Fisheries Production

• Inland Fish Output: Increased from 61.36 lakh tonnes to 139.07 lakh tonnes
• Marine Fish Output: Reached 44.95 lakh tonnes by 2023–24

Temperature and Rainfall Patterns

• Mean Annual Temperature: Rose from 25.05°C (2001) to 25.74°C (2024)
• Rainfall: High inter-annual variability, no clear rising/falling trend

Biodiversity Snapshot

• Total Faunal Species: 1,04,561 species
  • Soil: 22,404 | Freshwater: 9,436 | Mangroves: 5,023

Public Expenditure on Environment (2021–22)

• Highest Allocation: ₹2,433 crore for Environmental Sustainability
• Lowest Allocation: Agroforestry

New Additions in 2025 Edition

• Ramsar Sites
• Sanitation Coverage
• Transport Infrastructure
• Electricity Access

Strengths of the Report

• Data-Driven Policy Support: Enhances climate action, resource planning, and biodiversity protection
• Energy Transition Tracking: Captures clear shift toward renewables
• Inclusive Indicator Set: Socio-environmental factors now covered for holistic sustainability view
• Biodiversity Highlight: Documents India’s rich ecological footprint with species-level data

Key Gaps and Challenges

• No Regional Break-Up: Rainfall/temperature trends not disaggregated by state or district
• Lacks Policy Impact Evaluation: Purely descriptive, no assessment of intervention outcomes
• Delayed Data: Several datasets are retrospective, limiting real-time response utility
• No Vulnerability Assessment: Rising climate risks not mapped to adaptive capacity or risks

Banking/Finance

1. RBI Cuts Repo Rate to 5.5%

Context:

In a bid to boost economic growth and ease borrowing costs, the Reserve Bank of India (RBI) announced a 50 basis points (bps) cut in the repo rate, lowering it from 6.00% to 5.50%. This is the third rate cut in 2025 and the largest single cut in over two years. The decision was made following a three-day Monetary Policy Committee (MPC) meeting chaired by RBI Governor Sanjay Malhotra.

Key Rates Announced

Rate Type	New Rate	Previous Rate
Repo Rate	5.50%	6.00%
Standing Deposit Facility (SDF)	5.25%	–
Marginal Standing Facility (MSF) & Bank Rate	5.75%	–

Why Did RBI Cut Rates?

• Inflation Outlook: CPI inflation eased to 3.2% in April 2025, the lowest in nearly six years, driven by falling food prices, moderate fuel costs, and stable core inflation.
• Growth Prospects: India’s GDP growth is steady at a projected 6.5% for 2025–26, but RBI sees scope to stimulate consumer demand and private investment.
• Global Risks: Ongoing global uncertainties and trade tensions prompted a supportive monetary stance.

What Does the Rate Cut Mean for You?

Lower EMIs for Borrowers

• Home loans, car loans, and personal loans linked to repo rate or external benchmarks are expected to become cheaper.
• Banks and NBFCs will likely pass on the benefits in the coming weeks.

Cheaper Credit for Businesses

• Small businesses and startups may benefit from lower working capital costs, potentially encouraging hiring and investment.

Impact on Fixed Deposits (FDs)

• FD interest rates are expected to decline, impacting savers, especially senior citizens.
• Investors are advised to consider government-backed schemes, debt mutual funds, or other targeted saving instruments.

Loan and Investment

• For Borrowers:
  • Floating rate loans are favorable in the current environment.
  • Borrowers with repo-linked home loans will benefit immediately.
  • Existing borrowers with older loans tied to MCLR or base rates should evaluate refinancing to secure lower rates.
• For FD Investors:
  • Lock in higher FD rates now for longer tenures (3-5 years) before rates drop.
  • Consider 2-3 year corporate bonds, which may offer better spreads than FDs.

Policy Stance and Outlook

• RBI shifted its policy stance from “accommodative” to “neutral”, signaling that future rate cuts depend on inflation and growth trends.
• The next MPC meeting is scheduled for August 4–6, 2025.

Impact on Affordable Housing and Real Estate

• Home Loan Affordability: Lower repo rates reduce EMIs, improving home loan affordability, particularly for mid-income and affordable housing segments.
• Real Estate Demand:
  • Expected boost in buyer sentiment, enquiries, and sales volumes, especially in affordable and mid-segment housing.
  • Banks may lower home loan interest rates, enhancing developer and buyer confidence.
• Liquidity Support: Reduction in the Cash Reserve Ratio (CRR) will release more funds for banks to lend, helping developers access capital and accelerate project timelines.

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2. Insolvency and Bankruptcy Code (IBC)

Why in News?

• As of 2024, creditors have realised ₹3.89 lakh crore under IBC with a recovery rate of 32.8% (IBBI data).
• The IBC is now a major instrument for corporate debt resolution and economic discipline.

Background

• Enacted in 2016 as India’s first comprehensive bankruptcy law.
• Objective: Provide a time-bound, creditor-driven resolution process for insolvency.
• Resolution timeline capped at 330 days, beyond which liquidation follows.

Role in Debt Recovery

• IBC = 48% of all bank recoveries (FY24) – RBI Trends & Progress Report 2024.
• Preferred over SARFAESI, Lok Adalats, and DRTs.

Key Impacts

• Credit Culture Shift: Debtors now more disciplined in repayments.
• Improved Credit Allocation: IIM Bangalore study indicates:
  • Decline in Gross NPAs from 11.2% (Mar 2018) → 2.8% (Mar 2024).
  • Cost of debt for distressed firms down by 3% post-IBC.
• Corporate Governance Reforms: More independent directors on resolved firms’ boards.
• Early Distress Resolution: Significant pre-admission settlements.

Key Challenges

Area	Details
Judicial delays	NCLT backlog delays resolution despite CoC approval.
Post-resolution uncertainty	Implementation risks discourage investor bids.
Bhushan Steel verdict	SC review of a closed transaction threatens commercial certainty.
Infrastructure gaps	Insufficient benches, lack of trained professionals.
Future-readiness	Unclear treatment of IPRs, employee dues, and tech continuity.

Suggestions for Reform

• Strengthen NCLT/NCLAT infrastructure and expand benches.
• Pre-packaged insolvency for faster, informal resolution (especially for MSMEs).
• Legal sanctity of approved resolution plans to avoid post-facto judicial reversals.
• Codify commercial wisdom protection to avoid excessive litigation.
• Update valuation, workforce, and IP treatment frameworks.

3. Flipkart Gets NBFC Licence from RBI

Context:

Flipkart has received a Non-Banking Financial Company (NBFC) licence from the Reserve Bank of India (RBI). This marks the first instance of a large e-commerce player in India being permitted to lend directly. The licence was officially granted on March 13, 2025, as per RBI documents reviewed by Reuters.

What This Means

• Flipkart can now offer loans directly to:
  • Consumers shopping on its platform
  • Sellers operating in its marketplace
• It cannot accept deposits, as per NBFC regulations.
• Direct lending is a more profitable model compared to existing partnerships with third-party banks and NBFCs.

Implications

• Flipkart Finance Pvt Ltd applied for this licence in 2022.
• This move aligns Flipkart more closely with fintech operations, helping Walmart (Flipkart’s majority owner with 80%+ stake) deepen its footprint in India’s digital financial ecosystem.
• Could trigger a broader shift in how e-commerce and embedded finance converge in India.

4. IndusInd Bank Accounting Irregularities

Context:

On March 10, 2025, IndusInd Bank disclosed accounting discrepancies in its derivatives portfolio, with an estimated adverse impact of 2.35% on its net worth as of December 2024.

NFRA Investigation

• National Financial Reporting Authority (NFRA) received a complaint via CPGRAMS on suspected accounting lapses.
• NFRA is coordinating with the RBI to access the forensic audit conducted by Grant Thornton, commissioned by the central bank.
• NFRA’s focus is on determining the role of the auditors of IndusInd Bank, as it falls within NFRA’s mandate for all listed entities.

Internal Red Flags

• IndusInd Bank’s board suspects fraud involving certain employees who played significant roles in accounting and financial reporting.

ICAI Oversight

• On May 29, ICAI’s Financial Reporting Review Board initiated a review of IndusInd’s financial statements for FY24 and FY25.
• If serious noncompliance is detected, it will be referred to Director (Discipline) and reported to relevant regulators.

SEBI Action

• The Securities and Exchange Board of India (SEBI) initiated a suo motu UPSI probe into possible insider trading linked to the derivatives disclosure.
• SEBI asked five senior IndusInd officials, including:
  • Former CEO Sumant Kathpalia
  • Former Deputy CEO Arun Khurana
    to disgorge ₹20 crore for alleged insider trading.

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5. RBI Data: Bank Credit and Deposit Trends in FY2024–25

Overall Bank Credit Growth

• Total Credit Growth (FY25): Slowed to 11.1%, compared to 15.3% in FY24.
• Private Sector Banks: Witnessed the steepest slowdown, with March 2025 credit growth dipping to 9.5%, after maintaining over 15% growth for three consecutive years.

Retail Lending Trends

• Retail Credit Share: Increased to 31% of total bank credit in FY25 (up from 24.1% in FY20).
• Retail Credit Growth: Eased to 13.2%, but still outpaced overall credit expansion.
• Key Segments: Consumer durable loans and other personal loans accounted for nearly one-third of retail credit.

Borrower Profile Shifts

• Individual Borrowers: Contributed 47.8% of total credit as of March 2025, up from 41.5% in March 2020.
• Women Borrowers: Share rose gradually to 23.8% in FY25, up from 22.0% five years ago—indicating improved credit access for female borrowers.

Deposit Composition and Interest Rate Trends

• Savings Deposits: Share declined to 29.1% in March 2025 (from 30.8% in 2024 and 33.0% in 2023).
  • Cause: Banks lowered savings deposit rates to protect net interest margins.
• Fixed Deposits (FDs): Gained preference among savers.
  • Term Deposits ≥7%: Accounted for 72.7% of all FDs in March 2025—signaling depositor shift toward higher returns.

Key Takeaways

• Private banks are witnessing a notable slowdown in credit growth, post a multi-year boom.
• Retail lending remains the main driver, despite some moderation in pace.
• A clear shift in depositor behavior is visible, with high-return FDs gaining against low-yielding savings accounts due to interest rate differentials.

6. Motilal Oswal BSE 1000 Index Fund Launched

Context:

Motilal Oswal Mutual Fund has launched India’s first index fund tracking the BSE 1000 Total Return Index, offering investors access to a broad-based, passive equity portfolio covering 1,000 companies across large, mid, small, and micro-cap segments. The New Fund Offer (NFO) is open from June 5 to June 19, 2025.

Key Highlights

Fund Objective & Benchmark

• Objective: Generate returns that mirror the BSE 1000 Total Return Index, subject to tracking error.
• Benchmark: BSE 1000 TRI, representing ~94% of India’s listed market cap across 22 sectors.

Investment Features

• Type: Passive Index Fund
• Market Coverage: Large, mid, small, and micro-cap companies
• Top 10 Weight Cap: 33% to mitigate concentration risk
• Rebalancing: Semi-annual
• Weighting Method: Free-float market cap weighted

Why Invest in the Motilal Oswal BSE 1000 Index Fund?

Broad Diversification

• Exposure to 1,000 companies across 22 sectors
• Includes India’s top-performing emerging businesses and industry leaders

Passive & Cost-Effective

• No active stock picking
• Reduces fund manager bias and lowers cost

Aligned with India’s Growth Story

• Reflects India’s evolving economy across tech, infra, manufacturing, and consumption
• Linked to Viksit Bharat 2047 vision (target: $23–$35 trillion GDP)

Lower Risk via Index Cap

• 33% cap on top-10 stocks reduces overexposure to market heavyweights

7. SEBI Notifies Framework for ESG Debt Securities Including Social, Sustainability, and Linked Bonds

Notified by: Securities and Exchange Board of India (SEBI)
Effective From: June 5, 2025
Purpose: To standardize the issuance and monitoring of Environmental, Social, and Governance (ESG)-linked debt instruments in India

Context:

Markets regulator Sebi came out with an operational framework for issuance of social bonds, sustainability bonds and sustainability-linked bonds, which together will be known as Environment, Social and Governance (ESG) debt securities.

What are ESG Debt Securities?

Financial instruments issued to raise funds exclusively for projects with positive environmental, social, or governance (ESG) outcomes.

Types of ESG Debt Instruments:

• Green Bonds: Focus on environmental benefits (e.g., renewable energy)
• Social Bonds: Target social impact (e.g., affordable housing, healthcare)
• Sustainability Bonds: Blend of green and social objectives
• Sustainability-Linked Bonds: Linked to the issuer’s ESG performance targets

Key Features of ESG Debt Securities

• Use of Proceeds:
  Funds must be used for eligible ESG projects only
  Clear allocation for financing or refinancing
• Accurate Labelling:
  Bonds must be labelled (green, social, etc.) based on the primary project objective
• Global Compliance:
  Must adhere to international ESG norms and best practices
• Third-Party Validation:
  Mandatory engagement of independent reviewers/certifiers
• Issue Scope:
  Applies to both public issues and private placements

Highlights of SEBI’s Operational Framework

1. Classification Criteria

• Issuers must clearly classify debt as green, social, sustainability, or sustainability-linked
• Each issuance must demonstrate how the primary objective aligns with ESG goals

2. Mandatory Disclosures

• Initial (in offer documents):
  • Eligibility of projects
  • Selection & evaluation process
  • Indicative use of proceeds (financing vs refinancing)
• Ongoing/Annual:
  • Fund utilization reports
  • Quantified ESG impact metrics
  • Deviation statements (if any)

3. Independent Review

• Requirement to appoint external reviewers/certifiers for:
  • Validating project eligibility
  • Ensuring ESG claims are credible and measurable

4. Impact Monitoring & Transparency

• Issuers must monitor, measure, and disclose the ongoing impact of funded projects
• Ensures funds are not misused or greenwashed

Significance & Impact

• Promotes Responsible Capital: Aligns India’s capital markets with sustainable finance standards
• Boosts Investor Confidence: Transparent reporting and third-party audits reduce ESG risks
• Strengthens ESG Ecosystem: Encourages Indian corporates to adopt long-term ESG strategies
• SDG Alignment: Supports India’s commitments to UN Sustainable Development Goals, Paris Climate Agreement, and G20 green finance roadmap

Agriculture

1. FAIFA Report Urges Action on Climate-Resilient Agriculture

Context:

The Federation of All India Farmer Associations (FAIFA) released a report titled “Nourishing the Future: A Report on Climate-Resilient Agriculture” during a seminar in New Delhi on June 5, 2025. The study underscores the growing threats climate change poses to Indian agriculture and outlines key interventions needed to build resilience.

Key Climate Risks Identified

• Erratic Rainfall
• Unseasonal Droughts
• Temperature Spikes
• Rising Pest Incidence

These factors are disrupting crop cycles in major producing States and threatening farm productivity and rural incomes.

Barriers to Sustainable Farming Adoption

• High Initial Costs of sustainable and climate-resilient technologies
• Fragmented Infrastructure, especially in irrigation and storage
• Low Awareness among farmers about climate-smart practices

Recommendations from FAIFA Report

Policy and Institutional Actions

• Bridge implementation gaps in existing climate-resilient schemes
• Strengthen collaboration among government bodies, research institutions, and private sector players
• Promote integrated farming systems and conservation agriculture

Public Investment and Research

• Scale R&D in climate-resilient seed varieties
• Promote precision agriculture tools with higher subsidies
• Expand farmer training programmes on sustainable practices

Targeted Subsidies

• Focus on:
  • Renewable energy solutions
  • Micro-irrigation infrastructure
  • Organic and bio-based inputs

Commendation for Existing Central Schemes

The report appreciated government initiatives such as:

• Pradhan Mantri Fasal Bima Yojana (PMFBY)
• Micro-irrigation and drip irrigation schemes

However, it urged greater targeting and flexibility to meet local needs more effectively.

Equity and Adaptation Needs

• Small and marginal farmers are the most affected due to low adaptive capacity
• There is growing urgency to balance food security with climate mitigation
• A shift is needed from a “grow more” approach to a “grow better” mindset, according to FAIFA General Secretary Murali Babu

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Facts To Remember

1. Kaziranga National Park to be expanded to promote tourism

The Assam Cabinet, headed by Chief Minister Himanta Biswa Sarma, approved the expansion of the Kaziranga National Park and Tiger Reserve.

2. PM Modi to inaugurate Kashmir’s first all-weather rail link with Delhi today

Kashmir is set to finally have a rail link with the rest of the country, as Prime Minister Narendra Modi will inaugurate the Srinagar-Jammu-Delhi rail link on Friday at Katra in Udhampur district of Jammu.

3. Tata Capital IPO Likely to Receive SEBI Nod Soon: Set to be India’s Fourth-Largest Public Issue

Tata Capital, a key non-banking financial company (NBFC) under the Tata Group umbrella, is poised to receive regulatory clearance from the Securities and Exchange Board of India (SEBI) for its ₹17,200 crore ($2 billion) Initial Public Offering (IPO). The approval is expected within the next few weeks.