Daily Current Affairs (DCA) 8 April, 2025

Daily Current Affairs Quiz
8 April, 2025

International Affairs

1. Netanyahu, Trump Meet at White House

Context:

In a high-stakes visit to Washington, Israeli Prime Minister Benjamin Netanyahu became the first foreign leader to personally request an exemption from U.S. tariffs under President Donald Trump’s new economic measures. The meeting comes amid escalating tensions in the Middle East, particularly in Gaza and with Iran.

Key Highlights

Netanyahu Meets Trump Over U.S. Tariffs

• Netanyahu’s visit to the White House on Monday was prompted by a 17% tariff imposed on Israeli goods by the U.S. last week.
• The Israeli leader is seeking relief from the new tariffs, despite Israel being the top recipient of U.S. military aid.
• President Trump refused to exempt Israel, citing a “significant trade deficit” with the country.

Gaza Conflict and Iran Tensions on the Agenda

• Both leaders were also expected to discuss:
  • The collapse of a U.S.-brokered truce between Israel and Hamas in Gaza.
  • The ongoing hostage crisis.
  • Rising threats and strategic challenges related to Iran.

Canceled Press Conference Raises Eyebrows

• A joint press conference, which was part of the original schedule, was canceled at short notice without explanation.
• During Netanyahu’s previous visit, both leaders had spoken to the press — making the sudden cancellation noteworthy.

Symbolic and Political Undertones

• The two leaders were seen together outside the West Wing, wearing matching attire dark suits, red ties, and white shirts signaling unity.
• Netanyahu emphasized the urgency of his visit, stating before departure: “We will discuss the hostages, achieving victory in Gaza, and of course the tariff regime that has also been imposed on Israel.”

Netanyahu’s surprise visit underscores the growing impact of Trump’s protectionist trade policies, which are now straining ties even with traditional U.S. allies like Israel. As tensions in Gaza and the wider region intensify, the outcome of this meeting could significantly influence diplomatic, economic, and military dynamics in the months ahead.

TH

2. Hungary Withdraw from International Criminal Court

Context:

Hungary has officially announced its decision to withdraw from the International Criminal Court (ICC), becoming the first European Union (EU) member state to take such a step. This unprecedented move, declared during Israeli Prime Minister Benjamin Netanyahu’s visit to Budapest, has raised significant geopolitical and legal concerns both within the EU and globally.

Strategic Timing Amid ICC Controversy

Hungarian Prime Minister Viktor Orbán revealed the decision shortly after the ICC issued an arrest warrant for Netanyahu over alleged war crimes and crimes against humanity related to the Israel-Gaza conflict. Orbán criticized the court’s actions as politically motivated and unfairly targeted, especially toward allies like Israel. The visit and declaration were widely interpreted as a public gesture of solidarity with the embattled Israeli leader.

About Hungary

Hungary, a landlocked country in Central Europe, has Budapest as its capital and largest city, and the currency is the Hungarian Forint (HUF). 

• Location: Hungary is located in Central Europe, bordering Slovakia, Ukraine, Romania, Serbia, Croatia, Slovenia, and Austria. 
• Capital: The capital and largest city is Budapest. 
• Currency: The official currency is the Hungarian Forint (HUF). 
• Other facts: Hungary is a member of the European Union (EU) and the Schengen Area. 

Legal and Procedural Implications

• Withdrawal Timeline
  • Hungary’s exit from the ICC is not immediate. Under the Rome Statute, the withdrawal process takes effect one year after official notification to the United Nations Secretary-General.
• Precedent in the EU
  • This decision sets a controversial precedent, as no other EU member state has left the ICC since its formation in 2002. Hungary’s move may test the legal and diplomatic coherence within the union, especially regarding shared values of human rights and international justice.

International Backlash and Concerns

• Human Rights Organizations, including Amnesty International and Human Rights Watch, have sharply criticized Hungary’s exit, warning it undermines global efforts to ensure accountability for war crimes and atrocities.
• The ICC itself expressed regret over the decision, emphasizing the importance of maintaining international legal frameworks in a time of global uncertainty and increasing conflict.

Hungary’s Broader Diplomatic Stance

This move is consistent with Hungary’s increasingly nationalist and unilateral foreign policy, which often positions it at odds with broader EU consensus. Hungary has previously clashed with Brussels on issues such as judicial independence, press freedom, and migration policy.

A Turning Point for International Law?

Hungary’s withdrawal from the ICC could have long-term consequences for international justice and EU cohesion. It raises serious questions about the future of global accountability mechanisms, especially when national interest overshadows collective responsibility.

National Affairs

1. Indian Stock Markets Crashes

Market Meltdown Overview

Indian equities witnessed their steepest fall since the COVID-era crash, rattled by a combination of geopolitical tensions, fragile global cues, and fears of a looming global recession. The epicenter of market anxiety: a fast-escalating U.S.-China trade war, with fresh tariff threats and no signs of diplomatic de-escalation.

Global Market Sync: Asian Markets Slide

• Markets across Japan, South Korea, Hong Kong, and China also dipped sharply, tracking Wall Street futures and investor risk aversion.
• The synchronized sell-off suggests a broader financial contagion is in motion.

Trump’s Trade Ultimatum: The Flashpoint

• U.S. President Donald Trump, via Truth Social, issued a hardline ultimatum: “If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, the U.S. will impose additional 50% tariffs effective April 9th.”
• He also hinted at exclusive negotiations with alternate trade partners, sidelining Beijing.

Investor Pulse & Forward Outlook

• Volatility Index (VIX) spiked, reflecting rising investor anxiety.
• Global fund managers have turned defensive, leaning toward safe havens like gold and U.S. Treasuries.
• Analysts expect continued market swings with possible policy responses from RBI and other central banks if the economic fallout deepens.

This sell-off isn’t just a correction it’s a reflection of deep systemic fears: a trade war, rising protectionism, and a potentially cooling global economy. Markets may stabilize only once clarity emerges on trade policy direction.

2. Policing Report 2025: Custodial Torture in India

Context:

A recent study by Lokniti-CSDS and Common Cause uncovers deeply rooted attitudes towards police brutality, custodial torture, and coercive interrogation within India’s policing system. Surveying 8,276 police personnel across 82 locations in 17 Indian States, including Delhi, the report highlights systemic approval of violence, especially in cases involving serious crimes or national security.

Key Findings from the Report

Broad Approval of Violence for “Greater Good”

• 63% of police personnel believe it is acceptable to use violence against suspects in serious cases.
  • 22% strongly agreed, and 41% moderately agreed.
• Only 35% opposed the idea, suggesting widespread normative support for extra-judicial practices.

Torture Justified in Interrogations

• 42% strongly support torture in terrorism-related cases.
• 34% strongly back torture in rape, sexual assault, and murder cases.
• 28% support using torture on known repeat offenders (history sheeters).

Routine Coercion in Criminal Investigations

• 49% justify verbal abuse or threats in minor offences like theft.
• 32% approve slapping suspects.
• 9% endorse the use of third-degree torture even for petty crimes.
• In serious crimes:
  • 55% support verbal abuse.
  • 50% approve slapping.
  • 30% justify third-degree violence.

Frequency of Coercive Practices in Police Stations

• 26% say threats against suspects occur often; 34% say it happens sometimes.
• 18% admit slapping or light physical force is common; 28% say it happens occasionally.
• 10% confirm third-degree torture occurs often; 16% say it happens sometimes.
• 1 in 3 officers report that coercive methods are frequently used in investigations.

Mixed Views on Mandatory Reporting of Custodial Torture

• ~40% support making reporting of torture mandatory in all cases.
• Similar proportion supports mandatory reporting in selective cases.
• 10% believe reporting should never be required.
• Junior officers show more support for mandatory reporting than senior officials.

Willingness to Report Abuse by Superiors

• Over 40% strongly agree they would report their superiors if provided legal protection.
• Another 36% agree moderately, suggesting latent demand for institutional safeguards.

Implications for Police Reform and Human Rights

• The findings raise critical questions about institutional accountability, human rights compliance, and the normalization of violence within Indian policing culture.
• While some openness exists toward mandatory reporting and whistleblower protection, deep-seated attitudes continue to justify custodial violence as a means to an end.
• Police reforms must prioritize:
  • Sensitization training on human rights.
  • Strict enforcement of anti-torture protocols.
  • Independent oversight mechanisms.
  • Legal protection for whistleblowers and junior officers.

The study reveals that police brutality is not merely incidental but institutionally rationalized by a significant segment of the force. For India to uphold democratic values and constitutional morality, an urgent and holistic police reform agenda must be implemented one that redefines accountability, safeguards human dignity, and aligns law enforcement with global human rights standards.

TH

3. Pradhan Mantri Mudra Yojana (PMMY)

Launch and Purpose

• Launched on April 8, 2015, by the Prime Minister, PMMY aimed to provide collateral-free microcredit up to ₹10 lakh to non-corporate, non-farm small and micro entrepreneurs.
• It was a direct response to the 2013 NSSO survey, which identified 5.77 crore small business units facing severe credit access barriers.

Challenges Addressed by PMMY

• Lack of collateral among small entrepreneurs
• Complex bank procedures and poor credit histories
• High transaction costs and limited financial literacy

Loan Categories Under PMMY

• Shishu (Loans up to ₹50,000)
• Kishore (Loans between ₹50,001 and ₹5 lakh)
• Tarun (Loans between ₹5 lakh and ₹10 lakh)
• Tarun Plus (Loans up to ₹20 lakh, for successful Tarun category borrowers)

Implementation and Support Mechanisms

• Loans offered through Member Lending Institutions (MLIs) such as banks, NBFCs, and MFIs.
• A Credit Guarantee Fund managed by National Credit Guarantee Trustee Company Ltd (NCGTC) helps reduce risk for lenders and encourage lending to asset-less and first-time borrowers.
• Simplified loan application processes, especially for Shishu borrowers, using digital platforms such as:
  • Jan Samarth Portal
  • PSB Loans in 59 Minutes
• Many financial institutions have also developed mobile apps and online platforms to reduce paperwork and enhance convenience.

Impact Over a Decade (2015–2025)

• Over 52 crore loans sanctioned
• ₹33.5 lakh crore in total loan disbursal
• 20% of beneficiaries are first-time entrepreneurs
• Average loan size has nearly doubled
• 65% of total disbursed amount under Kishore and Tarun categories

Inclusivity and Empowerment

• 68% of beneficiaries are women entrepreneurs
• Nearly 50% of loans have gone to SC/ST/OBC communities
• The scheme has been pivotal in promoting:
  • Financial inclusion
  • Women’s economic empowerment
  • Microenterprise development

Contribution to National Goals

• PMMY aligns with the vision of Atmanirbhar Bharat and Viksit Bharat 2047, fostering self-reliance and inclusive economic growth.

TOI

4. MoSPI Releases Women and Men in India 2024

Context:

The Ministry of Statistics and Programme Implementation (MoSPI), Government of India, has released the 26th edition of its flagship publication, “Women and Men in India 2024: Selected Indicators and Data”. This annual report provides a detailed and gender-disaggregated statistical portrait of India’s demographic, socio-economic, and institutional landscape.

Key Purpose and Impact

This publication:

• Offers gender-based statistics across critical sectors such as population, education, health, economic participation, and decision-making.
• Draws on data from diverse ministries, departments, and organizations to reflect both urban-rural divides and regional disparities.
• Aims to inform gender-sensitive policy formulation, and support evidence-based decision-making for inclusive and sustainable development.

The full report is accessible on the MoSPI website.

Major Highlights from “Women and Men in India 2024”

1. Education & Gender Parity

• Gender Parity Index (GPI) at primary and higher secondary levels remains consistently high, reflecting strong female school enrolment.
• Upper primary and elementary levels show fluctuations, but overall maintain near parity.

2. Labour Participation

• Labour Force Participation Rate (LFPR) for ages 15+ (usual status) increased from 49.8% in 2017-18 to 60.1% in 2023-24, indicating growing workforce inclusion.

3. Financial Inclusion

• Women hold 39.2% of all bank accounts and contribute 39.7% to total deposits.
• Participation is highest in rural India, where 42.2% of account holders are women.

4. Stock Market Participation

• DEMAT accounts surged more than fourfold between March 2021 and November 2024, from 33.26 million to 143.02 million.
  • Male account holders: 26.59M → 115.31M
  • Female account holders: 6.67M → 27.71M
• Female participation is steadily rising, though males still dominate.

5. Entrepreneurship & Economic Activity

• An increasing trend of female-headed proprietary establishments is observed across manufacturing, trade, and services sectors from 2021–22 to 2023–24.
• Startups with at least one woman director grew from 1,943 in 2017 to 17,405 in 2024, indicating a surge in female entrepreneurship.

6. Political Participation

• Total electors rose from 173.2 million (1952) to 978 million (2024).
• Female voter turnout peaked at 67.2% in 2019, slightly dipping to 65.8% in 2024, but still surpassed male turnout, closing the gender gap in electoral participation.

The “Women and Men in India 2024” report not only reflects the progress India has made in bridging gender disparities but also highlights areas that need focused interventions. It is an essential resource for policymakers, researchers, gender advocates, and institutions aiming to drive inclusive growth and support the Viksit Bharat vision.

PIB

5. FAO Launches “Four Betters Courses” & “Commit to Grow Equality” Initiatives

Context:

The Food and Agriculture Organization (FAO) of the United Nations has recently launched two major global initiatives to address pressing challenges in the agrifood sector — the “Four Betters Courses” Initiative and the “Commit to Grow Equality (CGE)” Initiative. These aim to strengthen educational integration and close the gender gap in agrifood systems worldwide.

Four Betters Courses Initiative

Launched: October 2024, World Food Forum
Objective: Transform agrifood education through academic integration of FAO resources
Strategic Link: Aligned with FAO’s Strategic Framework 2022–2031

Key Features:

• Promotes the “Four Betters” vision:
  • Better Production: Efficient, inclusive, sustainable food systems
  • Better Nutrition: Access to safe, nutritious, and affordable diets
  • Better Environment: Climate action and ecological restoration
  • Better Life: Reduced inequality and improved rural livelihoods
• Delivery Mechanism: FAO eLearning Academy
  • Over 600+ multilingual, certified courses accessible globally
  • Focused on skilling professionals and students in agrifood domains

Commit to Grow Equality (CGE) Initiative

Launched: 2024 at the United Nations General Assembly (UNGA)
Objective: Bridge the gender gap in agrifood systems by empowering rural women
Potential Reach: 54 million women, particularly in agrarian economies

Key Features:

• Financial Commitment: Mobilizes $1 billion for gender-responsive agrifood projects
• Monitoring Tools: Offers strategic reporting frameworks for governments and businesses
• Policy Integration: Aligns national agriculture policies with gender equality targets
• Stakeholder Engagement: Encourages collaboration among governments, NGOs, private sector

6. INS Sunayna Embarks on IOS SAGAR Mission

Context:

The Indian Navy Offshore Patrol Vessel (NOPV) INS Sunayna has set sail from Karwar under the Indian Ocean Ship (IOS) SAGAR initiative, symbolizing India’s growing commitment to regional maritime cooperation and security in the Southwest Indian Ocean Region (IOR).

Mission Overview: IOS SAGAR

• Full Form: Security and Growth for All in the Region
• Flagged off by: Hon’ble Raksha Mantri Shri Rajnath Singh
• Departure Point: Karwar Naval Base
• Vessel: INS Sunayna, an Offshore Patrol Vessel of the Indian Navy
• Crew: Includes 44 naval personnel from 9 Friendly Foreign Nations (FFNs)

Purpose and Strategic Significance

• Reinforces India’s leadership role in promoting maritime stability in the IOR
• Provides comprehensive naval training and enhances interoperability with participating foreign navies
• Aims to build shared maritime capabilities and promote collaborative security frameworks

Key Port Calls

• Dar-es-Salaam (Tanzania)
• Nacala (Mozambique)
• Port Louis (Mauritius)
• Port Victoria (Seychelles)

Strategic Impact

• IOS SAGAR enhances India’s strategic outreach in the Indo-Pacific
• It supports a secure, stable, and inclusive maritime architecture
• Demonstrates India’s ability to lead capacity-building initiatives for smaller navies in the region
• Serves as a platform for multilateral collaboration in tackling regional maritime threats like piracy, trafficking, and illegal fishing

INS Sunayna’s deployment under IOS SAGAR showcases India’s vision of “Security and Growth for All in the Region” and its resolve to become a net security provider in the IOR. The mission is a testament to India’s strategic diplomacy, fostering friendship, training, and trust across Indian Ocean littorals

PIB

7. MOSPI Launches Revamped Microdata Portal and AI Innovations

Context:

The Ministry of Statistics and Programme Implementation (MOSPI) has taken a significant stride toward modernizing India’s statistical ecosystem with the launch of a revamped Microdata Portal and a suite of AI-driven tools. Announced during the recent Conference of State Government Ministers, these initiatives aim to enhance data accessibility, streamline policy planning, and support India’s vision of a data-driven Viksit Bharat.

Revamped Microdata Portal: A New Era in Data Accessibility

The upgraded Microdata Portal serves as a centralized hub for high-quality data derived from national surveys and the economic census. Developed in collaboration with the World Bank Technology Team, the portal features a scalable and secure architecture, a responsive user interface, and advanced access mechanisms tailored for researchers, policymakers, and analysts.

Key Features:

• Seamless access to large datasets from national-level statistical operations
• State-of-the-art UI/UX design and mobile responsiveness
• Enhanced security protocols in line with global standards
• Scalable technology stack built for long-term sustainability

Launch of the National Statistical System Training Academy Website

• In tandem, MOSPI unveiled a dedicated website for the National Statistical System Training Academy (NSSTA). The platform centralizes information on capacity-building programs and training modules, making them more accessible to government personnel and data professionals across the country.

Developed in-house by the Data Informatics & Innovation Division, the NSSTA site aims to:

• Simplify access to training resources
• Support statistical literacy and workforce development
• Foster continuous professional development across government departments

AI-Powered NIC Classification Tool: Enabling Smarter Data Use

• As a technological leap forward, MOSPI introduced a proof-of-concept AI/ML tool for streamlined classification under the National Industrial Classification (NIC) system. Built using Natural Language Processing (NLP), the tool allows users to input text descriptions and receive the top five relevant NIC codes.

Benefits:

• Significantly reduces manual classification workload
• Improves accuracy and productivity for enumerators
• Facilitates faster, more consistent data collection
• Evolved from the recent MOSPI Hackathon initiative

Building a Data-Driven Nation

These digital-first innovations underline MOSPI’s ongoing commitment to leveraging advanced technologies to modernize the Official Statistical System. By enabling easier access to structured data, strengthening training, and automating classification tasks, MOSPI is:

• Empowering evidence-based policymaking
• Enhancing transparency and efficiency in governance
• Supporting India’s transformation into a Viksit Bharat

PIB

Science & Tech

1. Health of the Nation 2025

Context:

Launched on World Health Day, Apollo Hospitals’ Health of the Nation 2025 report presents alarming trends in non-communicable diseases (NCDs) in India. The findings reveal that NCDs often originate early in life, escalate with age, and intensify post-menopause, especially in women. The report also highlights a dramatic surge in fatty liver disease, now largely driven by metabolic dysfunction rather than alcohol use.

Key Insights from the Report

1. Early Onset of NCDs Among Youth

• Apollo SHINE Foundation screened 2.85 lakh students aged 3 to 17 and college students across six States and 10 cities.
• Obesity prevalence increases with age:
  • 8% of primary school children were overweight.
  • 28% of college students were overweight.
• Pre-hypertension and high blood sugar:
  • 9% of high school students and 19% of college students were pre-hypertensive.
  • 2% of college students showed elevated blood glucose levels.
• The report warns that if unmanaged, NCDs continue to burden health well into adulthood.

2. Alarming Trends in Women’s Health Post-Menopause

• Diabetes prevalence jumps from 14% (pre-menopause) to 40% (post-menopause).
• Obesity increases from 76% to 86%.
• Fatty liver prevalence rises from 54% to 70%.
• Hypertension spikes from 15% to 40%.
• The findings underscore that metabolic and cardiovascular conditions cluster post-menopause, demanding proactive, holistic health management strategies for women.

3. Rising Fatty Liver Burden Across Population

• Out of 2.5 lakh individuals screened, 65% had fatty liver.
  • Of these, 85% were non-alcoholic cases.
• Fatty liver is now referred to as Metabolic Dysfunction-Associated Steatotic Liver Disease (MASLD).
  • Driven primarily by obesity, diabetes, and high cholesterol, not alcohol.

Fatty liver disease, also known as hepatic steatosis, is a condition where excess fat builds up in the liver, often with few or no symptoms, but can lead to liver damage and complications if left unmanaged. 

• What it is
  • Fatty liver is characterized by the accumulation of fat (triglycerides) within liver cells, sometimes leading to inflammation and damage. 
• Types
  • Nonalcoholic Fatty Liver Disease (NAFLD): This occurs when fat builds up in the liver, but it’s not caused by heavy alcohol consumption. 
  • Nonalcoholic Steatohepatitis (NASH): A more severe form of NAFLD, where the liver inflammation and damage are present along with fat accumulation. 

Key Takeaways for Public Health Strategy

• NCD prevention must begin in early childhood through routine screening, nutritional guidance, and lifestyle interventions.
• A gender-specific approach is crucial, especially in managing post-menopausal health risks.
• Public awareness campaigns must address the misconception that fatty liver is alcohol-induced, highlighting its metabolic roots.
• Integrated healthcare policies should focus on youth health education, early detection frameworks, and menopausal support systems.

The Health of the Nation 2025 report paints a sobering picture of India’s NCD landscape, revealing that prevention and intervention must begin much earlier in life than previously assumed. With childhood obesity, metabolic disorders, and menopausal health risks on the rise, a multi-stakeholder response is imperative to safeguard future generations.

2. Mystery of Iron’s High Opacity in the Sun

Context:

While the universe contains grand mysteries, some of the most confounding are found in subtle physical details. One such enigma is iron’s unexpectedly high opacity inside the sun a factor that is now forcing scientists to re-evaluate solar models and potentially rewrite theories on stellar structure and evolution.

What Is Opacity and Why It Matters

• Opacity refers to how much light an element absorbs. Higher opacity means more light is absorbed, less is transmitted.
• On Earth, iron is known to be opaque, but iron inside the sun appears far more opaque than previously predicted.
• This small discrepancy significantly impacts our understanding of energy flow, temperature distribution, and stellar behavior.

The Role of Stellar Models in Astrophysics

• The sun acts as a template for understanding other stars.
• Scientists develop solar models to simulate how stars generate energy, evolve, and influence space around them.
• These models must accurately reflect element abundances and opacities to predict phenomena like brightness, neutrino emission, and magnetic activity.

Discovery of the Iron Opacity Discrepancy

• Since the mid-2010s, several studies showed that the sun contains 30–50% less carbon, nitrogen, and oxygen than models predicted.
• A 2015 experiment recreated sun-like plasma conditions and found that iron’s opacity was up to 400% higher than what models expected.

New Findings: March 2025 Research Confirms Model Errors

• Latest study (March 3, 2025, Physical Review Letters) used cutting-edge tech at Sandia National Laboratories.
• Researchers exposed a thin iron sample to X-rays and observed the darkness of its shadow using ultra-fast spectrometers.
• They found that the opacity discrepancy cannot be explained by measurement errors — it’s a flaw in existing theoretical models.

Technological Breakthroughs Enabling the Research

• Mimicking solar conditions required:
  • Plasma densities exceeding 30,000 billion billion particles/mL.
  • Electron energy above 180 eV.
  • Ultrafast cameras and advanced spectrometry to capture time-based data at over a billion frames per second.
• Magnesium was added as a tracer element to validate plasma temperature and density.

Implications for Solar and Stellar Physics

• Iron’s true opacity influences energy transport and the sun’s internal structure.
• Incorrect opacity values can skew simulations of stellar behavior, galactic evolution, and exoplanet conditions.
• This research highlights that stellar models, even when validated in some respects, may hide deeper inaccuracies.

Next Steps and Remaining Challenges

• Future experiments must:
  • Measure absolute transmission (not just shadow depth).
  • Include formal uncertainty calculations.
  • Track opacity over time under dynamic plasma conditions.
• Resolving this will be critical to refining stellar evolution models and improving predictions of space weather, galaxy formation, and cosmic evolution.

The sun, our nearest star, continues to reveal how small inconsistencies in physical properties like opacity can cascade into major scientific questions. The new findings point toward a paradigm shift in stellar physics, suggesting that our theoretical understanding of the sun may need fundamental revision.

TH

3. Advanced E-Surveillance System

Context:

Amid heightened concerns over cross-border infiltration, Union Home Minister Amit Shah visited the India-Pakistan International Border in the Hiranagar sector of Kathua district, Jammu & Kashmir, to assess ground conditions and review security arrangements.

Key Highlights of the Visit

1. Deployment of Electronic Surveillance System

• Shah announced the rollout of a dual-model electronic surveillance system along the India-Pakistan border.
• The system will:
  • Enable real-time monitoring of enemy activities.
  • Help detect and neutralize underground tunnels used for infiltration.
• Implementation to be completed within 3–4 years on the Pakistan border, followed by the India-Bangladesh border.

2. Use of Technology to Combat Cross-Border Tunnels

• Multiple tech-based innovations have been introduced for tunnel detection and destruction.
• Shah stated that 26 experimental projects are currently underway to enhance border security capabilities.

3. Support for Security Personnel and Families

• Shah handed appointment letters to families of 11 martyrs, including 10 police personnel and one engineer.
• Reaffirmed the Centre’s commitment to BSF and other forces, promising swift implementation of security-related proposals.

Context: Rising Border Infiltration Incidents

• The International Border (IB) in Jammu has seen increased militant activity in recent months.
• On March 27, a day-long encounter resulted in:
  • 2 militants neutralized
  • 3 escaped using night cover
  • 4 policemen killed during a militant ambush from a hilltop vantage point

The Indian Express

4. What the Most Visited Websites in 2025

Context:

As of 2025, over 60% of the global population approximately 5.5 billion people—are online. The most visited websites globally reflect familiar patterns, according to DataReportal. Dominating the list are:

• Search engines: Google, Yahoo
• Social media platforms: Meta (Facebook, Instagram), X (formerly Twitter), Reddit
• AI-powered tools: ChatGPT
• Messaging services: WhatsApp (especially high in India)

Despite changing technologies, user behavior shows consistent intent: to seek knowledge, connect, and express. However, the internet’s evolution also reveals a stark contrast between initial ideals and current realities.

The Promise of the Internet: Breaking Barriers

• In its early days, the internet offered unrestricted access to knowledge and global connection.
• Hopes were high that distance, gatekeeping, and elitism in education and discourse would vanish.
• A teenager in rural India could find like-minded fans of literature or gain access to global academic lectures.

The Reality in 2025: A Double-Edged Sword

Despite the enduring user desire for information and community, the internet today is marked by:

1. Misinformation & Manipulation

• No entry barriers have led to a flood of content, where truth competes with falsehood.
• Bad-faith actors often go unchecked, making it hard for users to discern credible sources.

2. Algorithmic Division

• Social media’s engagement-first algorithms prioritize content that evokes strong reactions, often sowing division over dialogue.
• Platforms are becoming echo chambers rather than global forums.

3. AI Anxiety

• The rise of tools like ChatGPT reflects users’ thirst for answers—but also brings fears.
• Worries over the future of work, creativity, and authenticity are growing in the age of generative AI.

India’s Digital Behaviour: A Mirror of Global Use

• India largely mirrors global digital trends, with WhatsApp, Google, and social media platforms ranking highest.
• The platform choices reflect a blend of communication, learning, and community-building needs.

Hope Amidst the Clutter

The internet’s original spark may have dimmed, but its core utility remains intact. For those who seek, niche communities still thrive—be it fans of P.G. Wodehouse or quantum physics enthusiasts. The potential for meaningful engagement is alive—if one knows where to look.

The Indian Express

6. Biomass Mission: ESA’s Earth Observation for Climate Action

Context:

The Biomass Mission is the seventh Earth Explorer mission of the European Space Agency (ESA), focusing on understanding Earth’s forests and their role in the global carbon cycle.

Key Objectives

• Quantify global forest biomass and carbon content from space.
• Create 3D models of forest structures and monitor biomass changes over time.
• Track carbon flow, both absorption and release, within terrestrial ecosystems.

Organisations Involved

• Lead Agency: European Space Agency (ESA)
• Launch Site: French Guiana
• Launcher: Vega C satellite launch vehicle
• Collaborators: Research institutions across Europe

Key Features of the Biomass Mission

• P-band SAR Radar:
  • First satellite to use P-band Synthetic Aperture Radar (SAR) with a 70 cm wavelength
  • Allows deep penetration through forest canopies to the ground layer
• 12-metre Deployable Radar Antenna:
  • Enables high-resolution scanning of dense tropical and boreal forests
• Carbon Flow Monitoring:
  • Helps model carbon absorption and emission patterns, contributing to climate modeling and mitigation strategies
• Global Coverage:
  • Observes tropical, temperate, and boreal forests
  • Monitors ice sheets, ground terrain, and topographical changes
• Orbit:
  • Operates in a Sun-synchronous orbit at 666 km altitude
  • Ensures uniform lighting conditions, enhancing data consistency and accuracy

About the Earth Explorer Programme

• A research-driven satellite programme by ESA to investigate Earth’s interacting systems — atmosphere, biosphere, cryosphere, and geosphere
• Each mission addresses critical environmental and climate-related questions

Previous Missions

• GOCE (2009–2013): Mapped Earth’s gravity field and ocean circulation
• EarthCARE (May 2024): Studied clouds, aerosols, and radiation balance

Banking/Finance

1. Special Deposit Schemes

Context:

Public Sector Banks (PSBs) have begun adjusting their special fixed deposit schemes in the new fiscal year, often lowering interest rates or replacing existing schemes, in response to improved banking liquidity and the recent RBI repo rate cut the first since the 2020 pandemic.

Recent Changes by Major PSBs

1. Bank of Baroda (BoB)

• New Scheme: Square Drive Deposit Scheme
• Tenure: 444 days
• Interest Rate: 7.15%
• Replaces: BoB Utsav Scheme, which offered 7.30% for 400 days

2. State Bank of India (SBI)

• Withdrawn: Amrit Kalash Scheme (7.10% for 400 days)
• Continued: Amrit Vrishti Scheme
  • Interest Rate: 7.10%
  • Tenure: 400 days

3. Indian Bank

• Schemes Extended Till June 30, 2025:
  • Ind Super 400-Day Scheme – 7.30% interest
  • Ind Supreme 300-Day Scheme – 7.05% interest

4. IDBI Bank

• Utsav FD Scheme Extended Till April 30, 2025
  • 300-day deposit – 7.05%
  • 375-day deposit – 7.25%
  • 444-day deposit – 7.35%

Market Context & Outlook

• Improved liquidity conditions have reduced the pressure on banks to offer higher deposit rates.
• The RBI’s recent repo rate cut has prompted banks to reassess liability costs.
• Most PSBs are now opting for short-term extensions of high-interest deposit schemes, signaling a gradual shift in deposit strategy for FY26.

TET

2. HDFC Bank Lowers MCLR

Context:

On February 7, when the RBI last cut the policy rate, HDFC Bank had instead hiked its overnight MCLR by 5 bps. The latest reversal in trend suggests improved liquidity and lower borrowing costs for banks.

Key Highlights:

• Effective Date: April 8, 2025
• MCLR Cut: 10 basis points (bps) across all tenures
• New MCLR Range: 9.10% to 9.35%
• One-Year MCLR: Reduced to 9.30% from 9.40%

Marginal Cost of Funds-based Lending Rate (MCLR)

The Marginal Cost of Funds-based Lending Rate (MCLR) is the minimum interest rate that a bank can charge for a loan. It’s based on the cost of borrowing funds, the bank’s operating costs, and other factors. The Reserve Bank of India (RBI) implemented MCLR on April 1, 2016. 

How MCLR works?

• MCLR is a tenor-linked rate, meaning it varies based on the length of the loan. 
• Banks use MCLR to determine the interest rate for loans. 
• MCLR is the minimum interest rate that banks can charge, except in certain cases. 
• MCLR is fixed for borrowers unless the RBI revises it. 

Factors that affect MCLR

• Marginal cost of funds: The cost of borrowing funds, such as from savings deposits, term deposits, or other banks 
• Operating costs: The cost of generating cash, including service charges 
• Statutory liquidity ratio (SLR): The reserve that banks are required to keep 

Benefits of MCLR 

• MCLR ensures that banks charge interest rates that are true to the consumers.
• MCLR improves the openness of the structure used by banks to calculate interest rates.

Significance

• The one-year MCLR, crucial for pricing corporate and retail loans, reflects a drop in funding costs.
• The move indicates a softening interest rate environment, aligned with the RBI’s February repo rate cut — its first in five years.
• The reduction comes just before the RBI’s upcoming monetary policy review, where a 25 bps repo rate cut (to 6%) is widely expected.

TET

3. RBI Likely to Boost Liquidity

Context:

The Reserve Bank of India (RBI) is expected to enhance liquidity measures to ensure effective transmission of monetary policy amid global market turmoil triggered by US tariffs. Keeping overnight rates at or below the repo rate, facilitating quick rate transmission through liquidity tools.

Key Highlights:

• Rate Cut Expectations:
  • The Monetary Policy Committee (MPC) is scheduled to announce its decision on Wednesday.
  • A 25-basis point rate cut is widely expected, bringing the repo rate down to 6%.
• Global Market Fallout:
  • The US imposed 26% tariffs on Indian imports, triggering concerns over India’s growth and inflation outlook.
  • The move wiped off $2 trillion in global market cap, making it the worst tariff shock since 1930’s Smoot-Hawley Act.
• Liquidity Conditions:
  • Current banking liquidity surplus stands at around ₹1 lakh crore, a sharp turnaround from recent deficits.
  • RBI has injected ₹6.4 lakh crore in durable liquidity since December 2024, via:
    • Forex swaps
    • Open market bond purchases
  • An additional ₹60,000 crore infusion is expected in the rest of April.
• Overnight Borrowing Trends:
  • The Weighted Average Call Rate (WACR) was at 6.16%, 9 bps below the repo rate, indicating surplus liquidity.
• Transmission Efficiency Priority:
  • Economists believe a further rate cut must be accompanied by smoother transmission, and liquidity support is crucial.
  • Goldman Sachs: RBI to actively manage short-term liquidity for effective easing.
  • Madan Sabnavis (BoB): Sectors tied to the US economy may falter; lowering repo sends a supportive signal.
• Upcoming Liquidity Boost:
  • A ₹2.6 lakh crore dividend transfer from RBI to the government is expected in May, further supporting the liquidity push.

TET

4. SEBI Slaps ₹7 Lakh Fine on Reliance Securities

Context:

In a decisive regulatory move, the Securities and Exchange Board of India (SEBI) has levied a ₹7 lakh penalty on Reliance Securities for multiple violations of stockbroker norms, including failure to settle client funds, inaccurate margin reporting, and inadequate audit trails.

What Triggered the Action?

Following an inspection between December 22, 2022, and January 24, 2023, SEBI uncovered widespread lapses:

• Inactive Client Fund Settlement Ignored:
  • In 122 out of 127 cases, client funds were not settled on a quarterly basis.
  • Since September 2021, the firm failed to settle funds after 30 days of inactivity in 10,102 instances, affecting 8,527 unique clients.
• Inaccurate Margin Reporting:
  • Margins collected were incorrectly reported to exchanges, raising red flags about systemic data integrity.
• Lack of Trade Documentation:
  • The broker was unable to furnish valid proof of order placements, violating trade audit and client transparency norms.
• SEBI’s Stand:
  • The regulator noted that Reliance Securities’ lapses weren’t isolated but indicative of structural negligence, undermining investor confidence and exposing clients to potential risks.

TET

5. Loan and Deposit Growth Slowdown in Q4 FY25

Context:

Indian banks faced a challenging Q4 FY25, marked by slower loan and deposit growth, shrinking net interest margins (NIMs), and persistent system liquidity pressures. Despite the seasonally strong March quarter, tight liquidity, lagging deposits, and a 25-bps RBI rate cut in February weighed heavily on performance.

Key Takeaways

Loan Growth Trends

• Deceleration across multiple banks:
  • Punjab National Bank, Bank of India, IDFC First Bank, Yes Bank, Bandhan Bank, IDBI Bank, and South Indian Bank saw loan growth drop to 8-20% YoY in Q4 FY25, down from 12-22% in Q3 FY25.
  • HDFC Bank showed improvement in loan growth to 5.4% from 3% in the previous quarter.
  • IndusInd Bank saw a sharp decline, with net advances growing only 1.4% YoY and contracting 5.2% QoQ, primarily due to a pullback in its corporate loan portfolio.

Deposit Growth Trends

• System-wide deposit growth averaged 10.5%, down from 11.5% in Q3 FY25.
• Individual banks reported lower domestic deposit growth of 7–25% YoY, compared to 14–29% in Q3.
• HDFC Bank saw deposit growth slow slightly to 14.1% from 15.8%.

Net Interest Margin (NIM) and Rate Impacts

• The February rate cut led to a drop in lending rates, with the average weighted lending rate declining to 9.78% from 9.85%.
• Deposit rates remained sticky at 7.02%, exerting margin pressure as loan yields dropped but deposit costs stayed high.
• Kotak Institutional Equities flagged potential disappointment in NIMs, with no visible short-term recovery drivers.

System Liquidity and Credit Challenges

• Liquidity deficit in Jan–Mar estimated at ₹1.5–₹3 trillion.
• Non-food credit growth averaged 11.2%, only marginally above Q3’s 11.1%.
• Retail lending stress rose due to:
  • Higher delinquencies in small-ticket personal loans and microfinance.
  • Regulatory tightening impacting unsecured loan segments.

Asset Quality Risks

• ICRA highlighted concerns around asset quality deterioration, especially for banks with large unsecured loan books.
• Lenders with high exposure to risky retail segments could see further deterioration in loan performance metrics.

The fourth quarter of FY25 has exposed growing vulnerabilities in India’s banking sector—slower credit demand, deposit mobilization hurdles, and pressure on margins and asset quality. With the RBI rate cut having minimal positive impact on credit growth and continued stress in retail segments, banks may face an uphill battle in maintaining profitability in FY26.

BS

6. Zee Entertainment Gets Relief as NCLAT Rejects IDBI Bank’s Insolvency Plea

Context:

In a major win for Zee Entertainment Enterprises Ltd, the National Company Law Appellate Tribunal (NCLAT) has dismissed an insolvency petition filed by IDBI Bank over unpaid dues of approximately ₹150 crore. The judgment brings temporary relief to Zee amid ongoing legal and financial challenges.

NCLAT Decision

• NCLAT upheld the earlier NCLT Mumbai ruling, which rejected IDBI Bank’s insolvency plea.
• The tribunal invoked Section 10A of the Insolvency and Bankruptcy Code (IBC), 2016, which bars insolvency proceedings for defaults occurring during the Covid-19 moratorium period (25 March 2020 to 25 March 2021).
• Zee’s default was dated 5 March 2021, thus falling within the protected period.

Details of the Dispute

• Dispute originated from a 2012 guarantee agreement where Zee guaranteed a debt service reserve account (DSRA) for IDBI Bank’s working capital loan to Siti Networks.
• While Siti Networks’ loan turned into an NPA in December 2019, IDBI invoked Zee’s guarantee only in March 2021, demanding ₹61.97 crore.
• Zee argued its guarantee was limited to interest on the original ₹50 crore loan, not covering increased limits or principal.
• It further claimed its DSRA obligations ceased in February 2021 when the loan facility was recalled.

IDBI Bank’s Options

• NCLAT permitted IDBI Bank to file a fresh insolvency case if defaults occurred outside the Section 10A period.

Implications and Industry Perspective

• The ruling offers temporary reprieve for Zee, allowing it to avoid insolvency proceedings for now.
• Highlights the importance of timely invocation of guarantees and the Covid-19 shield under IBC.
• Also underlines growing legal scrutiny on debt guarantee agreements and DSRA structures in corporate finance.

Zee’s legal defense and favorable timing under Section 10A helped it avoid immediate insolvency proceedings. However, IDBI Bank still has room to reinitiate the case for any post-moratorium defaults, which means legal uncertainty continues.

Mint

7. How Should the RBI Respond to Trump’s Tariff Shock?

Context:

The announcement of “kind reciprocal tariffs” by US President Donald Trump, now the 47th president, has sent shockwaves through the global economy. The Indian economy, like many others, finds itself at a crossroads as it faces the fallout from the 26% US tariff on Indian exports. While the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) begins its policy review, critical decisions loom.

Backdrop: Global and Domestic Economic Jitters

• Trump’s tariffs have hit every major trading partner, with China retaliating with a 34% tariff.
• Global stock markets have crashed; India’s markets fell sharply as the MPC commenced its meeting.
• Major central banks like the US Fed, Bank of England, and PBOC are holding off on immediate policy changes.
• The IMF has warned of a “significant risk” to global growth and possible stagflation due to disrupted supply chains.

India’s Unique Position

• India retains hope of bilateral negotiations with the US to suspend or reduce tariffs.
• However, the timeline and success of such a deal are uncertain.
• Despite relatively low global integration, India could still feel the heat through:
  • Slower GDP growth
  • Imported inflation
  • Financial market volatility

Policy Dilemma for RBI

• RBI had already pivoted to a growth-supportive stance with a 25 bps rate cut in February.
• Another rate cut now seems tempting as growth risks have intensified.
• However, inflation remains a concern, and the outlook is highly uncertain.

Recommendation: Hold, but Stay Ready

• The best course may be strategic inaction—holding rates steady until clearer data emerges.
• This approach allows RBI to:
  • Avoid overreacting to market panic
  • Preserve ammunition for a more targeted response if needed
  • Maintain credibility in its inflation-targeting framework

The RBI is navigating a global storm of economic uncertainty sparked by protectionist policies and geopolitical shifts. As India negotiates trade relief and monitors price pressures, caution and communication will be key. A wait-and-watch strategy, paired with readiness to act decisively, may be the most balanced monetary response to Trump’s tariff tsunami.

Mint

8. RBI’s April 2025 Policy Review

Context:

The Monetary Policy Committee (MPC) meets this week under the shadow of global volatility driven by trade wars, inflation risks, and recession fears. Amid this turbulent backdrop, the Reserve Bank of India (RBI) is widely expected to maintain its accommodative stance and potentially deliver a 25 basis-point repo rate cut to 6%.

Key Macro Trends Influencing RBI’s Policy Path

1. Global Trade Tensions and Uncertainty

• The US tariff hikes and retaliatory actions globally are expected to slow down world growth and heighten inflation.
• India, like other current-account-deficit economies, must manage capital outflows and currency risks prudently.
• Core inflation in the US remains sticky, limiting Fed action, but demand slowdown may force a policy pivot.

2. Export-Led Deflation Risks in Asia

• Excess supply from China, Vietnam, Mexico, and Japan is feeding deflation risks due to export redirection.
• This deflationary wave may counterbalance global inflation, but could trigger more protectionism in Asia, complicating recovery.

3. Weak Domestic Growth Signals

• High-frequency indicators show urban demand weakness, while rural consumption remains steady.
• Uncertainty is delaying the private capex cycle and pressuring corporate earnings through margin compression and US market exposure.
• India’s GDP forecast of 6.5% for FY26 carries a 40–50 bps downside risk due to external shocks.

4. Benign Inflation Outlook and Liquidity Easing

• Inflation is expected to remain near 4%, assuming favourable monsoon conditions (El Niño-neutral forecast).
• The RBI has already infused ₹6.5 trillion in durable liquidity through:
  • CRR cuts
  • OMO bond purchases
  • Forex swaps
  • Transition to variable repo auctions
• The rupee’s recent strength may allow RBI to intervene and inject more liquidity, helping smooth monetary transmission and absorb the central bank’s $89 billion short forward book.

Expected Policy Decision and Forward Guidance

• Forecast: A 25 bps repo rate cut, bringing it to 6.00%, with a high chance of stance shift to “accommodative.”
• Dissent is likely on the stance change, given ongoing global financial volatility.
• Future rate trajectory: Repo rate could fall to 5.00%–5.25% if global headwinds intensify.
• The RBI may refrain from aggressive front-loading of cuts to avoid financial instability amid widespread uncertainty.

Awaited Announcements

• New liquidity framework guidance, including:
  • Status of weighted average call rate (WACR) as operating target
  • Reintroduction of on-tap fixed repo operations
  • Possible fine-tuning liquidity instruments for short-term management

The RBI is poised to continue easing, but with measured steps. As the global economy teeters on the edge of stagflation and recession, India’s central bank must support domestic growth while guarding against currency shocks and inflation surprises. A gradual, data-driven policy response appears to be the best strategy amid this uncertain environment.

Mint

9. One State-One RRB

Context:

In a significant structural reform aimed at enhancing operational efficiency and cost rationalisation, the Union Ministry of Finance is gearing up to implement the ‘One State-One Regional Rural Bank (RRB)’ policy. The move will see the consolidation of 43 existing RRBs into 28, a transformative step in India’s rural banking landscape.

Key Highlights of the Consolidation Plan

• 15 RRBs are set to be merged across various states.
• States such as Andhra Pradesh (with 4 RRBs), Uttar Pradesh, and West Bengal (3 each) will undergo major restructuring.
• Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan—each with 2 RRBs—will also see mergers.
• In Telangana, bifurcation of assets and liabilities between Andhra Pradesh Grameena Vikas Bank (APGVB) and Telangana Grameena Bank has been finalized, paving the way for consolidation.

Background and Rationale

• The plan is a continuation of a three-phase RRB consolidation journey that began in 2004-05, which had already brought down the number of RRBs from 196 to 43 by 2020-21. The fourth and final round is expected to conclude soon, sources indicate.

Financial and Operational Performance

• Capital infusion: As a preparatory measure, the Centre allocated ₹5,445 crore over two years (starting FY 2021-22) to strengthen the capital base of these RRBs.
• Record profits: In FY 2023-24, RRBs achieved their highest-ever consolidated net profit of ₹7,571 crore.
• Capital Adequacy: Reached a historic high of 14.2% as of March 31, 2024.
• Asset Quality: Gross Non-Performing Assets (GNPA) dropped to 6.1%, the lowest in the last decade.

Technological Modernisation and Reach

RRBs are increasingly adopting digital banking services, enhancing customer accessibility and efficiency. As of March 31, 2024:

• 43 RRBs are operating
• 22,069 branches span across 26 States and 3 Union Territories (Puducherry, Jammu & Kashmir, and Ladakh)
• Covering 700 districts of India

Governance Structure

• Shareholding pattern:
  • Centre: 50%
  • Sponsor Banks: 35%
  • State Governments: 15%
• Even after capital dilution (as per the 2015 amendment to the RRB Act, 1976), the combined shareholding of the Centre and sponsor banks cannot fall below 51%.

Strategic Vision: Toward Inclusive Rural Credit Delivery

Originally created under the RRB Act of 1976, these banks were envisioned to provide credit and financial services to small and marginal farmers, agricultural labourers, and rural artisans. With the upcoming consolidation, the government seeks to streamline operations, enhance credit flow, and align RRBs with the goal of Viksit Bharat (Developed India).

BS

10. Welspun One Secures ₹2,300 Crore Funding from NaBFID

Context:

In a major infrastructure financing milestone, Welspun One Logistics Parks has secured ₹2,300 crore in construction financing from the National Bank for Financing Infrastructure and Development (NaBFID) for its flagship logistics park project at Jawaharlal Nehru Port Authority (JNPA) in Navi Mumbai.

Project Highlights

• Location: JNPA Special Economic Zone (SEZ), Navi Mumbai
• Area: 55 acres
• Development Potential: Over 3.6 million sq. ft. of built-up industrial and warehousing space
• Tenure of Loan: 22-year term loan from NaBFID
• Key Sectors Targeted: E-commerce, 3PL (third-party logistics), FMCG, and manufacturing

National Bank for Financing Infrastructure and Development (NaBFID)

• NaBFID, established by the Government of India in April 2021, is the nation’s 5^th All India Financial Institution (AIFI), aimed at fostering long-term non-recourse infrastructure financing.
• NaBFID serves both developmental and financial objectives, facilitating credit flow and enhancing infrastructure finance accessibility.
  • It plays a pivotal role in advancing India’s infrastructure sector by addressing financing gaps through innovative tools like longer tenor loans, blended finance, and partial credit enhancement.

Strategic Impact

The long-term funding ensures timely project execution, enabling Welspun One to fast-track development while adhering to high standards in infrastructure and sustainability.

Significance in India’s Logistics Landscape

• The JNPA logistics park is Welspun One’s largest development to date and is positioned to be a game-changer in the Indian warehousing sector. Its strategic location within India’s premier port ecosystem enhances connectivity and operational synergies for businesses in key sectors.

This partnership between Welspun One and NaBFID exemplifies the growing focus on infrastructure-led growth, with an emphasis on logistics efficiency, Make in India, and SEZ-driven exports. As India ramps up its warehousing and supply chain capabilities, such mega-projects will play a critical role in strengthening the logistics backbone of the economy.

BL

Economy

1. India Likely to Meet 6.3–6.8% FY26 Growth Target

Context:

India remains on track to meet its FY26 real GDP growth forecast of 6.3–6.8%, despite fresh global headwinds triggered by the US’ imposition of 26% reciprocal tariffs on Indian imports, senior government officials confirmed.

The projected growth band, first outlined in the January Economic Survey, had already factored in some global disruptions. However, last week’s aggressive tariff action by the US has forced policymakers to reevaluate the extent of damage to exports and domestic momentum.

Nominal Growth Stays at 10.1% Target

• Despite the volatility, the government remains committed to its 10.1% nominal GDP growth assumption for FY26, aligned with Budget projections.
• In FY25, real growth may have reached 6.5%, according to the second advance estimates released in February.

Global Firms Adjust Forecasts

Investment banks are revising their outlook in response to the unfolding global tariff war:

• Goldman Sachs: Revised India’s FY25 and FY26 growth to 6.1%, trimming 30 and 20 basis points, respectively.
• Nomura: Predicts 6.2% in FY25 and 6.0% in FY26, citing emerging global trade uncertainty.
• HSBC & UBS: Anticipate a 20–50 bps drag on India’s FY26 GDP unless a favorable trade deal with the US materializes.

Comparative Tariffs:

• India: 26%
• Vietnam: 46%
• China: 54% (including prior tariffs)
• Bangladesh: 37%
• Thailand: 36%
• Indonesia: 32%

Sectoral Concerns

Government officials acknowledged that labour-intensive sectors such as textiles, garments, agriculture, and gems & jewellery could be hit hardest. These segments account for a major chunk of India’s exports and employment.

TET

Agriculture

1. Agriculture as a Propellant Towards a Viksit Bharat

Context:

India must shift from a consumption-led to an investment-led agriculture policy to ensure sustainable farmer income, boost productivity, and achieve the goal of Viksit Bharat (Developed India) by 2047.

Current Policy Issues Identified
Overdependence on Short-Term Support Measures

• Direct Benefit Transfers (DBT)
• Minimum Support Price (MSP)
• Fertiliser subsidies

Limited Capital Spending

• Infrastructure-related schemes under MoAFW and MoFPI: ~₹20,000 crore
• FPO promotion: < ₹600 crore

Missed Opportunity

• Budget allocations are tilted more towards increasing disposable income (e.g., personal income tax relief) than agricultural capital formation

Key Recommendations

1. Shift Towards Investment-Led Growth

• Move away from consumption-heavy schemes to:
  • Watershed management
  • Micro-irrigation systems
  • Post-harvest infrastructure
  • Mechanisation
  • Land aggregation and consolidation

2. Focus on Infrastructure and Value Chains

• Encourage PPPs in food processing clusters
• Strengthen supply chains to reduce post-harvest losses
• Enhance support for FPOs as a means of aggregation, extension, and quality input supply

3. Enable Systemic Reforms

• Revisit and implement reformed farm laws
• Phase out the dominance of APMCs
• Foster export-oriented FDI in agribusiness

Key Data Points

• Total Agriculture-Related Outlay (2024–25): ₹5.3 lakh crore (~11% of total Union Budget)
• Infrastructure Outlay (MoAFW + MoFPI): ~₹20,000 crore
• Credit and Insurance Schemes: ~₹35,000 crore
• FPO Promotion Allocation: < ₹600 crore

Identified Systemic Constraints

• Fragmented land holdings
• Inadequate access to quality seeds, inputs, and advisory
• Poor credit and insurance penetration
• Inefficient post-harvest handling and storage

Vision for Viksit Bharat 2047

• Aim: 8% annual growth in agriculture
• Need: Focus on efficiency, competitiveness, and sustainability
• Policy must prioritize investment in capacity building over revenue transfers

BL

Facts To Remember

1 . Govt Merges 26 RRBs Under ‘One State, One RRB’ Plan to Boost Efficiency

The Department of Financial Services (DFS) has notified the amalgamation of 26 Regional Rural Banks (RRBs) under the “One State, One RRB” principle.

2. PM Modi congratulates Mudra Yojana beneficiaries, says scheme turned dreams into reality

Prime Minister Narendra Modi today interacted with beneficiaries of the Pradhan Mantri Mudra Yojana at his residence, as the flagship scheme completed ten years since its launch in April 2015.

3. Bihar observes Poshan Pakhwada across Anganwadi Centres

In Bihar, Poshan Pakhwada or nutrition fortnight is being observed from today across all Anganwadi Centres, Bal Vatika and other health institutions. 

4. Padma Shri Ram Sahay Pandey, icon of Rai Folk dance, passes away at 92

Padma Shri Ram Sahay Pandey, a legendary figure in Rai folk dance, passed away at 92 after a prolonged illness. He died in a private hospital in Sagar, Madhya Pradesh.

5. Centre to release ₹50 crore pending dues to Punjab under Ayushman Scheme

The Union Health Ministry has agreed to release the pending dues of the Punjab State Health Agency under the Ayushman Insurance Scheme. Health Minister J P Nadda assured Punjab Health Minister Dr.