Daily Current Affairs (DCA) 7 March, 2025

Daily Current Affairs Quiz
7 March, 2025

International Affairs

1. India-Australia Defence Cooperation

Context:

Chief of Defence Staff (CDS) General Anil Chauhan’s visit to Australia has reinforced defence collaboration between India and Australia. This historic visit focused on enhancing interoperability, maritime security, and reciprocal deployments, marking a significant step in bilateral military cooperation.

Key Highlights of the Visit

First-ever Visit by an Indian CDS

• General Chauhan was hosted in Canberra by Australian Chief of Defence Force Admiral David Johnston.
• Discussions centered on long-term defence and security collaboration.

Enhanced Defence Cooperation

• Key focus areas:
  • Maritime Domain Awareness
  • Reciprocal Information Sharing
  • Deployments from Each Other’s Territories
• Strengthening interoperability through joint exercises across maritime, land, and air domains.

Strategic Importance

Australia’s Perspective

• India is considered a top-tier security partner.
• Both nations are committed to regional stability in the Indo-Pacific.
• Collaboration is taking place under the Comprehensive Strategic Partnership and through trilateral and quadrilateral frameworks such as the QUAD.

Admiral Johnston’s Statement

• Emphasized the importance of the India-Australia defence partnership.
• Stressed strengthening people-to-people links and engaging with key regional partners.

This visit underscores India and Australia’s growing defence cooperation, aimed at fostering regional security and stability. The partnership is evolving towards deeper interoperability, information sharing, and strategic deployments, ensuring a stronger Indo-Pacific defence framework.

2. COP-30

Key Highlights

• COP30 Dates & Location: Scheduled for November 10-21, 2025, in Brazil.
• Key Focus Areas:
  • Global Ethical Stocktake (GST) to track progress on the 1.5°C target.
  • Transition from fossil fuels and deforestation.
  • Tripling renewable energy and doubling energy efficiency.
  • Scaling up climate finance to $1.3 trillion annually.
  • Climate adaptation measures for vulnerable communities.
  • Implementation of COP28 agreements.

Global Temperature Trends

• January 2025 was the warmest on record, with global temperatures 1.75°C above pre-industrial levels.
• Copernicus Climate Change Service (C3S) reported:
  • Global avg. temp in Jan 2025: 13.23°C.
  • 0.09°C warmer than Jan 2024.
  • 0.79°C above the 1991-2020 avg., despite La Niña’s cooling effect.

The Role of the Global Ethical Stocktake (GST)

• Assessing Climate Progress: A review mechanism under the Paris Agreement conducted every five years.
• Led by Brazil’s President Lula da Silva & UN Secretary-General Guterres.
• Six global dialogues planned, covering regions like the Arctic, involving:
  • Youth, women, scientists, religious leaders, business leaders, activists, indigenous communities, and traditional societies.
• Goal: Align global behaviors and decisions with the 1.5°C target.

Brazil’s Adaptation Strategy

• National Adaptation Plan with 16 sub-programs targeting:
  • Vulnerable urban communities affected by heatwaves and wildfires.
  • Food security systems impacted by extreme weather.
  • Early warning systems for climate disasters.

IPCC Chair’s Perspective

• Jim Skea (IPCC Chair):
  • Achieving Sustainable Development Goals (SDGs) is impossible without climate action.
  • Article 2 of the Paris Agreement is crucial:
    • Keep global temp rise below 2°C, aim for 1.5°C.
    • Enhance adaptation capacity and climate resilience.
  • IPCC’s stance: Science-driven, not political.

COP30 aims to accelerate climate finance, enforce fossil fuel transition, and strengthen climate adaptation efforts. The Global Ethical Stocktake will serve as a critical accountability mechanism to ensure countries align their policies with the 1.5°C target, reinforcing global climate commitments.

National Affairs

1. U.S.-India Relations Under Trump: A Detailed Analysis

Context:

The external affairs minister S. Jaishankar in his address at Chatham House, London, spoke of the changing dynamics of U.S.-India relations during those days under President Donald Trump. He touched upon the changing geopolitical landscape, spurring strategic cooperation and the emergence of economic and connectivity initiatives which reflect Indian interests.

Geopolitical Shifts & Multipolarity

• U.S. Moving Toward a Multipolar World
  • Jaishankar noted that the policies of the Trump administration reflect a shift toward multipolarity that favors India from the standpoint of its global positioning.
  • Historically, the United States was seen as a member of the Western bloc (post 1945), but under Trump, its self perception is taking the shape of a country first approach, defined against the backdrop of traditional Western alliances.
• India’s Strategic Advantage
  • Accordingly, the shift in U.S. policy allows India to emerge as a far more equal partner in dialogue with Washington, advancing India’s own vision of a balanced world order.
  • Changes in the Trump administration’s policies thus open new avenues of Indo U.S. collaboration across a wide array of sectors.

Strengthening Strategic & Security Partnerships

• The Quad: A Shared Strategic Enterprise
  • Jaishankar underscored the importance of the Quadrilateral Security Dialogue (Quad) with the participation of India, the U.S., Japan, and Australia.
  • Unlike NATO, where burden sharing is a contentious issue, Quad members offer each contributor fair share in return, enabling better cooperation among themselves.
  • This strategic alignment matters for the stability of the Indo-Pacific region.

Connectivity, Energy & Economic Collaboration

• Trump’s Brief for Connectivity Initiatives
  • Jaishankar affirmed that the Trump administration stands somewhat positively disposed toward connectivity projects that involve joint ventures in consonance with board Indian interests.
  • An example in this respect is the India-Middle East Europe Corridor (IMEC), an intricate connectivity initiative that was discussed in Trump’s meeting with Prime Minister Modi at the White House.
• Potential Payoffs for India
  • Through these connectivity projects, India would acquire:
    • Enhanced spice routes passing through India, the Middle East, and Europe.
    • Strengthened ties with the U.S. and allied countries through economic partnership.
    • Improved cooperation in infrastructure and technology of strategic importance.

Broader Implications for Indo U.S. Relations

• Windows for Deeper Cooperation
  • Energy, defense, and technology under Trump presented India with strategic and economic opportunities.
  • By espousing multipolarity, therefore, the U.S. has surprisingly provided support to India’s global aspirations.

2. Balancing Federal Principles & Democratic Representation

Context:

The recent all-party meeting chaired by Tamil Nadu Chief Minister M.K. Stalin in Chennai has reignited the debate over delimitation, urging a freeze on the strength of the Lok Sabha and State Assemblies until 2056. This proposal reflects concerns over regional representation disparities, particularly for southern States, if seat allocation is strictly based on population growth.

Key Issues in Delimitation

Population Growth & Representation Imbalance

• Since the last delimitation exercise (2002-2008), India’s electorate has grown by 45%, leading to significant malapportionment in many constituencies.
• Example: Bangalore North (3.2 million voters) vs. Udupi Chikmagalur (1.6 million voters)—showcasing disproportionate voter representation within Karnataka itself.

North-South Divide in Seat Allocation

• Southern States, which have successfully controlled population growth, fear a loss of Lok Sabha seats if representation is strictly based on numbers.
• CM Stalin warns that using 2026 Census data could lead to an “indelible injustice” against progressive States.

Federalism vs. Democratic Representation

• The Constitution allows apportionment to be done “so far as practicable”, implying that factors beyond population (such as governance efficiency and development) should be considered.
• Some suggest State-wise delimitation (adjusting constituencies within States without altering national seat distribution), but this may disadvantage large, rapidly growing States.

Need for a Balanced Approach

Building a Consensus

• The Union government must ensure inclusivity in setting the terms for the next Delimitation Commission.
• A transparent, federal approach can prevent distrust between the ruling party at the Centre and regional stakeholders.

Respecting Federalism While Ensuring Fair Representation

• Delimitation should not penalize States that have achieved population control and economic progress.
• A flexible, data-driven model balancing population numbers, governance efficiency, and regional concerns is necessary.

The delimitation debate is a crucial test of India’s democratic ethos and federal structure. A premature, rigid implementation could deepen regional imbalances, while an overextended freeze may worsen malapportionment. The key lies in consensus-building, policy flexibility, and equitable representation, ensuring that no region is unfairly disadvantaged in shaping India’s political future.

3. INSV Tarini

Departure & Voyage Details

• Vessel: INSV Tarini
• Departure: March 5, 9:10 a.m. (local time) from Port Stanley, Falkland Islands
• Next Destination: Cape Town, South Africa
• Expedition: ‘Navika Sagar Parikrama-II’ – A global circumnavigation

Crew & Mission

• Sailors: Lieutenant Commander Dilna K. and Lieutenant Commander Roopa of the Indian Navy
• Current Leg: Fourth phase of the circumnavigation
• Objective: Showcasing India’s maritime capabilities and promoting women’s participation in ocean sailing

INSV Tarini

• Background
  • INSV Tarini is the Indian Navy’s second sailboat.
  • Built at Aquarius Shipyard Goa.
  • Commissioned for operation on 18 February 2017 after intensive sea trials.
• Design Features
  • Type Cruising sloop designed for long range sailing.
  • Hull sandwich wood core and fibre glass ensures the durability needed.
  • Sails Fitted with six sails including a mainsail genoa stay downwind and storm sail.
• Windvane monitoring for emergency steering
  • Capability Designed to withstand extreme conditions and support long duration voyages.
• Builder
  • Aquarius Shipyard Private Limited

Navika Sagar Parikrama-II

Two Indian Navy women officers Lt Cdr Roopa A and Lt Cdr Dilna K, will set sail on a globe circumnavigating expedition aboard INSV Tarini. This expedition named Navika Sagar Parikrama-II is to repeat the first version of the circuit and showcase India’s maritime potential and work towards the vision of equipping women to sail in the ocean.

Previous Indian Navy Expeditions

• Transoceanic voyage from Goa to Rio de Janeiro via Cape Town and back.
• Sailing expedition from Goa to Sri Vijaya Puram formerly Port Blair and back.
• Sortie from Goa to Port Louis Mauritius performed in a dual handed mode.

Significance

• Symbol of Women Empowerment: Highlights the role of women officers in high-seas missions
• Maritime Excellence: Strengthens India’s presence in global sailing expeditions
• Next Phase: The voyage continues towards Cape Town, further advancing India’s naval capabilities in ocean navigation

INSV Tarini’s journey exemplifies resilience and skill as it moves forward in this historic expedition.

4. AI Kosha: India’s New AI Dataset Platform

Overview of AI Kosha

• Launched by: Union Government of India
• Purpose: A repository of non-personal datasets to aid AI model and tool development
• Current Dataset Count: 316 datasets
• Primary Focus:
  • Language translation tools for Indian languages
  • Other datasets include:
    • Health data from Telangana’s Open Data Initiative
    • 2011 Census data
    • Satellite imagery from Indian satellites
    • Meteorological and pollution data

AI Kosha as Part of IndiaAI Mission

• IndiaAI Mission: A government-backed initiative with a budget of ₹10,370 crore
• Seven Pillars of IndiaAI Mission:
  • AI Kosha is part of the Datasets Platform pillar
  • Other pillars include Compute Capacity, which provides shared access to GPUs

Boosting Compute Capacity for AI Development

• Government Initiative:
  • Commissioned 14,000 GPUs for shared AI model training and execution (earlier target was 10,000 GPUs)
  • Additional GPUs to be added quarterly
• Foundational AI Model Development:
  • Inspired by DeepSeek (China’s AI model built at low cost)
  • Growing interest from Indian start-ups to develop a homegrown foundational AI model

Government’s Open Data Strategy

• Existing Open Data Platforms:
  • data.gov.in – Over 12,000 datasets from various government agencies
  • Government has appointed Chief Data Officers across Ministries to encourage dataset contributions
• Past Efforts to Leverage Non-Personal Data:
  • 2018 Committee led by Kris Gopalakrishnan explored mandatory data-sharing by private firms
  • Proposal (2020): Access to non-personal data from private firms (e.g., ride-sharing traffic data) for start-ups & policymaking
  • Pushback from private sector: Concerns over competition and proprietary data protection

Key Takeaways

• AI Kosha strengthens India’s AI ecosystem by providing crucial public datasets for model development.
• Increased GPU access supports start-ups and researchers in AI innovation.
• Government’s data-sharing policies face challenges, especially regarding private-sector data.
• India aims to develop its own foundational AI models to reduce reliance on foreign technology.

AI Kosha marks a significant step towards self-reliant AI development in India, but its success will depend on dataset expansion, private sector cooperation, and regulatory clarity.

4. India Semiconductor Mission (ISM) Phase 2

Context:

The Central government has finalized the framework for Phase 2 of ISM and is holding internal discussions before the official rollout.

Key Highlights:

• The scheme will focus on:
  • Strengthening semiconductor design and innovation.
  • Supporting raw materials, equipment, gases, and specialty chemicals for semiconductor manufacturing.
  • Enhancing the fabless semiconductor ecosystem by modifying the Design Linked Incentive (DLI) scheme to support more ambitious projects.
• Government’s Goal: To build a sustainable and competitive semiconductor ecosystem while moving up the value chain.

Key Challenges Identified

• Risk of overcapacity in legacy nodes due to global supply chain dynamics.
• Need for localized supply chains to reduce dependency on other geographies.

CDIL-Infineon Partnership

• CDIL Semiconductors (India) & Infineon Technologies (Germany) have signed an MoU to explore collaboration opportunities in India’s semiconductor market.
• Key Aspects of the Partnership:
  • Infineon will supply bare die wafers to CDIL.
  • CDIL will package and produce discrete & module semiconductor products for Indian customers.
  • Focus areas include e-mobility, renewable energy, and energy-efficient appliances.
• Industry Impact:
  • The partnership is expected to accelerate semiconductor manufacturing in India under the “Make in India” initiative.
  • India is being positioned as a hub for semiconductor innovation and excellence.

Future Outlook

• Upcoming ISM Phase 2 Announcements will determine the scale and scope of government incentives and industry participation.
• Increased localization of semiconductor supply chains will be a priority to reduce import dependencies.
• More international partnerships like CDIL-Infineon may emerge as India strengthens its semiconductor ecosystem.

Banking/Finance

1. SEBI Issues Warning Against Sunshine Global Agro Property Transactions

Key Highlights

• Markets regulator SEBI has warned the public against buying or dealing with properties owned by Sunshine Global Agro and its directors.
• Reason for Warning: SEBI discovered that some individuals/entities are illegally purchasing, encroaching, or trespassing on the company’s properties.
• Legal Consequences: SEBI has made it clear that unauthorized possession or trespassing will lead to legal action under applicable laws.

Background

• 2014 Ban: SEBI prohibited Sunshine Global Agro (formerly Sunshine Forestry Pvt. Ltd.) from raising funds from investors or launching any new schemes. The company was found to be running an unauthorized Collective Investment Scheme (CIS) involving the sale of Jatropha Bush Groups and plant/trees.
• 2019 Directive: SEBI barred the company and its directors from selling or disposing of assets, except for refunding investors.
• Non-Compliance & Recovery Action: After Sunshine Global Agro failed to comply, SEBI initiated recovery proceedings against the company and its directors.

Public Advisory

• Avoid transactions involving properties linked to Sunshine Global Agro.
• Verify ownership records before engaging in any property deals.
• Unauthorized dealings may lead to legal action by SEBI.

Source: The Telegraph

2. RBI Moves to Boost Liquidity

Key Highlights

• Liquidity Injection: RBI to infuse ₹1.87 trillion into the banking system to ease financial year-end liquidity constraints.
• Policy Transmission Focus: Despite a 25 bps repo rate cut in February, tight liquidity has kept interest rates elevated in some segments.
• Open Market Operations (OMO): RBI will purchase ₹1 trillion in government securities in two ₹50,000 crore tranches on March 12 and March 18.
• USD/INR Swap Auction: A $10 billion buy-sell swap with a 36-month tenor announced to manage forex liquidity.

Current Liquidity Situation

• Banking system liquidity was in a deficit of ₹55,000 crore as of March 6.
• Deficit persisted for 11 consecutive weeks, despite previous RBI measures:
  • ₹60,000 crore OMOs
  • $5 billion and $10 billion forex swaps in Jan-Feb
• Liquidity swung from a ₹1.35 trillion surplus in Nov 2024 to a ₹2.07 trillion deficit in Jan 2025, improving to ₹1.59 trillion deficit in Feb 2025.

Market Reactions & Expert Views

• Nomura Report: RBI’s actions suggest a proactive approach to shift the system into surplus, ensuring effective policy transmission.
• Harsh Dugar (Federal Bank ED): Banks may lower deposit rates, improving lending rate transmission.
• Treasury Head (Private Bank): RBI aims to stabilize short-term rates ahead of major outflows.
• Radhika Rao (DBS Bank): Measures reflect an accommodative stance, boosting market confidence.
• Suyash Choudhary (Bandhan Mutual Fund):
  • Underlying liquidity conditions have not been conducive for rate transmission.
  • These measures signal RBI’s intent to sustainably move liquidity into surplus.

Potential Impact

• Lower Deposit Rates: With improved liquidity, banks might cut deposit rates, easing funding costs.
• Bond Market Relief: Corporate bond spreads and state government security yields could stabilize.
• Forex Market Stability: Active RBI intervention in forex markets may ease rupee depreciation concerns.
• Policy Transmission Boost: Lending rates, especially marginal cost of funds-based lending rate (MCLR) loans, could see better transmission.

Upcoming OMO Auction – March 12

RBI will buy ₹50,000 crore worth of government securities, including:

• 7.10% GS 2029
• 7.18% GS 2033
• 7.10% GS 2034
• 7.40% GS 2035
• 7.41% GS 2036
• 7.23% GS 2039

The RBI’s liquidity measures are larger than market expectations and could shift the banking system to surplus, ensuring better monetary policy transmission and stabilizing short-term rates.

Source: BS

3. Digital Footprint-Based Credit Assessment Model for MSMEs

Key Highlights

• Launched by: Union Finance Minister Nirmala Sitharaman
• Event: Post-Budget interaction in Visakhapatnam
• Announced in: Union Budget 2024-25
• Objective: Enable Public Sector Banks (PSBs) to conduct in-house MSME credit assessment, reducing reliance on external agencies.

How the New Credit Model Works

• Uses MSME Digital Footprints to determine creditworthiness.
• Automated loan assessment for both:
  • Existing to Bank (ETB) borrowers
  • New to Bank (NTB) borrowers
• Data Sources for Credit Scoring:
  • PAN authentication via NSDL
  • Mobile & email verification (OTP-based)
  • GST data via service providers
  • Bank statement analysis through Account Aggregators
  • Income Tax Return (ITR) verification
  • API-enabled commercial & consumer credit bureau checks
  • Fraud detection & hunter checks via APIs

Significance & Expected Impact

• Faster, automated loan approvals for MSMEs.
• More objective & transparent credit decisions.
• Boosts financial inclusion by facilitating credit for small businesses.
• Strengthens PSBs’ capability to evaluate MSME loans without external dependency.

Government’s Vision

• Encourage digital transformation in MSME lending.
• Ensure easier access to credit, fostering growth in the MSME sector.
• Improve efficiency & reduce fraud risks in loan approvals.

This initiative is expected to enhance financial accessibility for MSMEs, supporting their expansion and contribution to the Indian economy.

Economy

1. India’s Bigger Share in US Electronics Market

Key Highlights

• Bilateral Trade Agreement (BTA): India is negotiating a BTA with the US to boost electronics exports, particularly in smartphones, air conditioners, colour TVs, wearables, and audio devices.
• Current Market Share: In 2023, India accounted for only 1.9% of the US’s $520 billion electronics imports, with total exports valued at $10 billion.
• Tariff Advantage:
  • The US has imposed a 20% tariff on smartphones, while India’s tariff stands at 16.5%, creating an opportunity for Indian exports.
  • Mexico lost its Free Trade Agreement (FTA) benefits, now facing a 25% tariff, providing India a chance to expand its presence in desktops, servers, colour TVs, and air conditioners.

US Electronics Import Landscape (2023)

Category	Total US Imports ($B)	China	Vietnam	Mexico	India
Smartphones	60	45 (75%)	8	5	–
Switching & Routing	51	7.9	11	8.4	1.2
Laptops & Tablets	46.3	35.9 (77%)	7.9	0.1	–
Desktops & Servers	37.1	0.65	0.09	25 (67%)	–
Colour TVs	12	1.19	1.13	9.2 (76%)	–
Air Conditioners	14	3	0.06	6.8 (48%)	0.04
Wearables & Audio	12.4	5.4 (43%)	3.3	1.8	–

Challenges & Opportunities for India

• Dominance of China, Vietnam & Mexico:
  • China leads in smartphones (75%), laptops (77%), and wearables (43%).
  • Vietnam is a strong player in switching & routing systems (21%).
  • Mexico dominates in desktops, colour TVs, and air conditioners, benefiting from past FTAs.
• India’s Strategy:
  • Push for zero-duty imports for smartphones under the BTA, as the US lacks local manufacturing.
  • Reduce or eliminate tariffs on colour TVs & air conditioners to stay competitive.
  • Leverage US tariff hikes on China & Mexico to expand India’s export footprint.

The ongoing BTA negotiations and tariff shifts could significantly boost India’s electronics exports to the US market, provided the right policy measures are implemented.

2. Private Investment in India

Government’s Role in Capital Expenditure

• Capital expenditure rose from 1.67% of GDP (2019-20) to 3.4% (2024-25).
• Goal: Stimulate demand & eventually pass investment leadership to the private sector.

Private Investment Trends & Challenges

• Tepid private investment, despite post-pandemic economic recovery.
• Pre-COVID weakness in investment due to the twin balance sheet problem (stressed corporate & bank balance sheets).
• Balance sheets now healthy, but private firms remain cautious about expansion.
• Capacity Utilization:
  • Stands at ~75% (just above long-term average).
  • Typically, firms expand at this level, but investment hesitancy persists.

Key Factors Limiting Private Investment

• Global Economic Uncertainty
  • Geopolitical risks, including Donald Trump’s return as US President, impact confidence.
• China’s Overcapacity
  • Excess Chinese supply limits India’s export growth potential.
• Weak Export Performance
  • Exports-to-GDP ratio fell from 25% (2013) to 18.7% (2019), now recovering but still below peak.
  • Investment & economic expansion closely tied to export performance.

Government’s Efforts to Boost Investment

• Simplification of regulations:
  • 42,000+ compliance rules removed since 2014.
  • 3,700+ legal provisions decriminalized.
  • Proposed Deregulation Commission to improve business climate.
• Infrastructure Spending & Incentives
  • Major public investments in infrastructure to encourage private participation.

Policy Outlook & Future Growth

• India’s high-growth period in the 2000s was fueled by 1990s reforms & strong exports.
• Structural reforms to boost ease of doing business will take time to yield results.
• Additional steps needed:
  • Enhancing global trade competitiveness.
  • Creating domestic demand certainty to drive private sector confidence.
  • Strengthening state-level business policies in coordination with the Centre.

While the government is laying the foundation for private investment through deregulation & infrastructure development, global & domestic uncertainties remain key hurdles. India must revitalize exports & create a stable economic environment to encourage large-scale private sector participation in growth.

3. India’s Economic Growth Forecast for FY26 – Crisil Report

Growth Projection

• India’s economy is projected to grow at 6.5% in FY26.
• Growth driven by strong domestic demand despite global uncertainties (geopolitical issues, US-led trade actions).

Key Assumptions & Drivers

• Normal monsoon & stable commodity prices.
• Cooling food inflation expected to ease cost pressures.
• Tax benefits from the budget to boost consumption.
• Lower borrowing costs encouraging spending and investment.

Sectoral Outlook

• Manufacturing Growth: Expected to average 9% annually between FY25-FY31 (compared to 6% pre-pandemic).
• Manufacturing’s GDP share to increase to 20% by FY31, driven by investments and efficiency improvements.
• Services sector remains primary growth driver, albeit at a slower pace.

Economic Resilience

• India has built “safe harbours” against external shocks:
  • Healthy economic growth.
  • Low current account deficit & external public debt.
  • Adequate forex reserves, providing policy flexibility.
• Short-term growth: Driven by urban and rural consumption.
• Medium-term growth: Supported by investments and efficiency gains.

Inflation Outlook

• Inflation softened in FY25, mainly due to lower non-food inflation.
• Food inflation remained high but is expected to decline further in FY26.
• This will help lower headline inflation and support economic stability.

Source: Mint

4. Pradhan Mantri Mudra Yojana (PMMY) – Disbursement Update (2015–2025)

Total Disbursement & Demand for Credit

• ₹31.85 trillion disbursed out of ₹32.61 trillion allocated under PMMY (April 2015 – Feb 2025).
• Indicates strong credit demand among micro and small businesses.

Top Beneficiary States (Disbursal Amounts)

1. Tamil Nadu – ₹3.21 trillion
2. Uttar Pradesh – ₹3.07 trillion
3. Karnataka – ₹2.98 trillion
4. West Bengal – ₹2.78 trillion
5. Bihar – ₹2.77 trillion
6. Maharashtra – ₹2.69 trillion

Scheme Overview

• Launched: 8 April 2015.
• Objective: Provide collateral-free institutional credit via banks, NBFCs, and microfinance institutions.
• Eligibility: Individuals with a business plan for small enterprises in:
  • Manufacturing
  • Trading
  • Services
  • Allied agriculture sectors

Impact & Revisions

• Financial Inclusion & Job Creation: The scheme has empowered small businesses and entrepreneurs, contributing to grassroots economic growth.
• Loan Limit Increase: Raised from ₹10 lakh to ₹20 lakh, effective October 2024 (as per Union Budget 2024-25).

Recent Trends & Performance

• Q3 FY25: Record disbursement of ₹3.39 trillion (highest quarterly since inception).
• H1 FY25: Loan disbursements declined to ₹1.86 trillion (from ₹1.92 trillion in H1 FY24) – first dip since COVID-19.
• Loan Accounts Approved (2015–2025):516 million, with the highest numbers in:
  • Bihar – 58 million
  • Tamil Nadu – 57 million
  • Uttar Pradesh & West Bengal – 50 million each
  • Karnataka – 49 million

Source: Mint

Facts To Remember

1. Sudan files case against UAE at the ICJ over ‘complicity in genocide’

Sudan has filed a case against the UAE arguing that the Gulf state is complicit in genocide over its alleged support for Sudan’s paramilitary Rapid Support Forces, the International Court of Justice announced on Thursday. Khartoum contends that the UAE is complicit in the genocide of the Masalit community in Sudan.

2. Trump delays tariffs on most imports from Mexico until April

U.S. President Donald Trump said on Thursday that he has postponed 25% tariffs on most goods from Mexico for a month amid widespread fears of the impact of a broader trade war. No details were released about what led to the move. No change was announced regarding the new tariffs imposed on Canada. 

3. South Korean fighter jets accidentally drop bombs, civilians among 15 injured

Two South Korean Air Force fighter jets accidentally dropped eight bombs on a village during a joint training exercise with U.S. forces on Thursday, officials said, with civilians among 15 persons injured.

4. PM Narendra Modi launches  various development projects at Silvasa in UT of Dadra & Nagar Haveli and Daman and Diu

Prime Minister Narendra Modi inaugurated and laid the foundation stone for various projects worth 2,587 crore rupees at Silvasa in Daman, Diu, and Dadra Nagar Haveli. 

5. Bihar boosts dairy exports: CM flags off Ghee, Gulab Jamun & Makhana shipments to USA, Canada

In a major boost to the export of dairy products from Bihar, three consignments of Ghee, Gulab Jamun and Makhana worth over 48 lakh rupees were today flagged off to the USA and Canada.

6. India finds increasing convergences with Europe, hopes for FTA conclusion by year-end: EAM Jaishankar

External Affairs Minister Dr S Jaishankar has said that India today finds increasing convergences with Europe and highlighted the growth of the Indian economy.

7. Jan Aushadhi Diwas being celebrated to promote affordable generic medicines

Today is Jan Aushadhi Diwas. The day is celebrated to raise awareness about the scheme and promote the use of generic medicines. Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) aims to make quality generic medicines available at affordable prices to all. 

8. RBI likely to cut rates by 50-75 bps in 2025-26 to support consumption: CRISIL Report

The Reserve Bank of India (RBI) is expected to cut benchmark rates by 50-75 basis points during 2025-26 to support consumption and lower borrowing costs, credit rating Agency Crisil’s India Outlook 2025 report has said.

9. Aravindh Chithambaram leads Prague Chess Festival 2025 Masters

At the 7th Prague International Chess Festival 2025 Masters, Indian Grand Master Aravindh Chithambaram drew with David Navara in the penultimate round and made a sole lead of 5.5/7 yesterday.