Daily Current Affairs (DCA) 9&10 March, 2025

Daily Current Affairs Quiz
9&10 March, 2025

International Affairs

1. OIC’s Rejections Against Trump’s Gaza Takeover Plan

Context:

The Organization of Islamic Cooperation (OIC) has officially accepted an Arab League backed counter proposal to the controversial American proposal for Gaza by President Donald Trump. It signals the regional resistance to external control over Gaza and heralds an alternate view led by Arab states.

Key Developments

OIC Endorsing the Arab League Plan

• The Egyptian drafted plan proposes Gaza’s reconstruction under the Palestinian Authority (PA) rather than a U.S. administration.
• OIC’s 57 member states called for international and regional financial support for this to happen.
• The Arab League had ratified the proposal in Cairo three days earlier.

Rejection of Trump’s Proposal

• Trump’s plan involved U.S. control over Gaza, calling it the “Riviera of the Middle East [West Asia].“
• The plan faced widespread global condemnation, especially for its move to displace Palestinians to Egypt or Jordan.
• The adoption of this Arab League plan by the OIC, thus, is a very strong rejection of Trump’s vision.

Strategic & Diplomatic Implication

Regional Unity against U.S. & Israeli Proposals

• OIC and Arab League will present a coordinated alternative to Western backed plans for Gaza.
• Egypt will lead diplomatic efforts to internationalize this plan and seek support from the US, Japan, Russia, and China.
• This move could strengthen Palestinian diplomatic leverage.

U.S. and Israeli Opposition to the Arab Plan

• Washington rejected the plan stating it “does not meet expectations”.
• U.S. envoy Steve Witkoff, however, called it a “good faith first step”, probably hinting at future diplomatic engagement.
• Israel has not yet endorsed any long term governance plan about post war Gaza, rendering implementation very difficult.

Financial/Political Challenges in Rebuilding Gaza

• The plan’s success, therefore, depends heavily on international funding.
• Hamas’ exclusion from governance brings doubts about its practical viability on the ground.
• Long term stabilization in Gaza remains uncertain without an agreed on political settlement.

What is Next?

This move by the OIC signifies a very harsh geopolitical stance against U.S. proposals for Gaza. However, gaining broad international support and political intricacies such as the role of Hamas with the plan will be key challenges in actualizing the Arab League plan.

2. India-Mauritius Relations

Context:

PM Modi will visit Mauritius (March 11-12, 2025) as the Guest of Honour for its Independence Day celebrations on March 12.

Political Context

• Mauritius has a new government led by Navinchandra Ramgoolam (Labour Party), who won a landslide victory in November 2024 elections.
• India-Mauritius relations have remained strong regardless of party leadership in either country.
• Modi’s visit will reaffirm India’s support for Mauritius’ security and economic prosperity.

Historical & Cultural Ties

• Shared Colonial Past: Mauritius’ first PM, Sir Seewosagur Ramgoolam, worked with Netaji Subhas Chandra Bose in London (1919-21).
• Indian Diaspora:
  • Nearly 70% of Mauritius’ population is of Indian origin, descended from indentured laborers.
  • Major linguistic groups: Bhojpuri, Tamil, Telugu, Marathi.
  • Mahatma Gandhi Institute & World Hindi Secretariat promote Indian culture and languages in Mauritius.
• Diplomatic Challenge:
  • Mauritius is a multi-ethnic society, including influential French-origin elites who dominate business sectors.
  • India’s diplomacy must balance ties with all communities, beyond just the India-origin population.

Economic & Trade Relations

• Rapid trade growth: India-Mauritius bilateral trade reached $554 million (2022-23).
• Strategic Business Hub:
  • Mauritius has preferential trade agreements with Africa and is bilingual (English & French).
  • Well-developed finance & banking sector makes it a gateway to Francophone Africa.
• Investment & Financial Sector:
  • Mauritius is a major source of foreign investment into India due to the Double Taxation Avoidance Agreement (DTAA).
  • Has emerged as an international financial hub, leveraging its strong legal framework.

Maritime Security & Strategic Cooperation

• Mauritius’ Strategic Role:
  • Exclusive Economic Zone (EEZ): 2.3 million sq. km.
  • India has installed coastal radar stations and redeveloped Agaléga island as a joint surveillance facility.
  • Mauritius has access to India’s Information Fusion Centre for the Indian Ocean Region (IFC-IOR) for enhanced maritime security.
• Regional Security Alliances:
  • Colombo Security Conclave (India, Sri Lanka, Maldives, Mauritius, Bangladesh) ensures a safe & secure Indian Ocean region.
  • INS Sarvekshak recently mapped 25,000 sq. km of Mauritius’ ocean territory.
• China Factor:
  • With China’s increasing presence in the Indian Ocean, India-Mauritius security cooperation has gained strategic importance.

Outlook

• PM Modi’s visit will reinforce India’s historical, economic, and strategic ties with Mauritius.
• Discussions will focus on:
  • Deepening economic partnerships
  • Strengthening maritime security
  • Ensuring Mauritius remains India’s reliable ally in the Indian Ocean

India-Mauritius ties must remain a strong and stable anchor in an increasingly uncertain geopolitical landscape.

Source: TH

3. India Raises Concerns Over Pakistan’s Investment in NDB

Context:

IMF is conducting its first review of a $7 billion bailout granted to Pakistan in 2023. India has previously abstained from voting on Pakistan’s IMF loan requests but took a stricter stance in January 2024. India urged the IMF to ensure “stringent monitoring” of funds provided to Pakistan to prevent diversion towards defense spending or external debt repayment.

Pakistan’s Plan to Invest in NDB

• Pakistan’s Economic Coordination Committee (ECC) has approved a $582 million investment in the New Development Bank (NDB) for a 1.1% stake.
• NDB, founded by BRICS nations (Brazil, Russia, India, China, South Africa) in 2015, finances infrastructure and sustainable development projects.
• Pakistan argues that the investment will:
  • Strengthen its economic ties with BRICS.
  • Reduce reliance on Western lenders like the IMF.

India’s Objection & Concerns

• India is set to red-flag Pakistan’s investment in NDB when the second tranche of the IMF loan is reviewed.
• The key concerns India will raise:
  • Contradiction: A nation seeking emergency funds from IMF should not simultaneously invest hundreds of millions in another financial institution.
  • Use of IMF funds: India wants to ensure that Pakistan does not divert IMF aid for non-priority expenditures.
  • Lack of financial discipline: Pakistan is in a debt crisis, yet it is using forex reserves for investments rather than economic stabilization.

India’s Prior Stand on Pakistan’s IMF Loans

• In January 2024, during the review of Pakistan’s $3 billion Stand-By Arrangement (SBA), India demanded:
  • Strict monitoring of IMF funds.
  • Checks to prevent misuse for repaying third-country debts or boosting military spending.

Implications & Next Steps

• If India raises formal objections, the IMF board might tighten oversight on Pakistan’s loan utilization.
• Pakistan may have to justify its financial priorities and face scrutiny over its economic strategy.
• The issue could impact Pakistan’s IMF funding prospects and its diplomatic standing in BRICS nations.

This development adds another layer to India-Pakistan tensions and raises questions about Pakistan’s financial strategy amid its ongoing economic crisis.

National Affairs

1. Geo Mapping of Plantations in Kerala by the Rubber Board

Context:

The Rubber Board of India will commence geo mapping rubber plantations in Kerala from next week to enable the growers to have more market access for better price realization and compliance with international sustainability norms.

It is at the initiative overview:

• Objective
  • Better and improved market access.
  • It verifies the material under the certification towards Indian Sustainable Natural Rubber (iSNR) framework.
• Compliance
  • On the European Union Deforestation Regulation (EUDR).
• Implementation
  • Phase 1: 10 of the major rubber growing districts of Kerala.
  • Other regions: Will be covered after this.
  • Partnered by: Trayambu Tech Solutions Pvt. Ltd., Hyderabad.

What is Geo Mapping?

• Means digital recording of
  • Land ownership details.
  • Area and boundary of the plantation.
  • Techniques for supply chain mapping and traceability.

This gives clear origin tracking, thus making Indian rubber products more competitive in world markets.

Why is This Important?

• EUDR Compliance
  • This requires that all commodities that go into the EU must be deforestation free (post Dec. 31, 2020).
  • Rubber must be derived lawfully and according to environmental sustainability.
• International Trade and Marketability
  • It fortifies the Indian position in international rubber markets.
  • Supports the sustainable and transparent production of rubber.
• iSNR Certification and Due Diligence
  • Certification will imply compliance with EUDR regulations.
  • Due Diligence Certificate will be issued after the risk assessment and legality analysis.
• Facilities
  • Access to essential traceability certificates and documents.
  • Get Due Diligence Declarations and Geolocation datasets.
  • Compliance to the world deforestation free regulations.

This geo mapping initiative lays an important milestone in determining the sustainable production of rubber in India. Integrating into a status of digital tracking and certification with long term commitment towards global regulatory compliance gives better prices, improved trade access, and long term sustainability to Indian rubber growers and exporters.

Source: TH

2. TB Elimination Campaign

Context:

The 100 day intensified TB elimination campaign, which began on December 7, 2024, covered 33 States and Union Territories, with 455 intervention districts. It tried to find symptomatic and asymptomatic TB cases among high risk groups by way of chest X ray screening and bacteriological confirmation through molecular tests.

Key Highlights of the Campaign

Objectives

• Screening of vulnerable populations including diabetics, smokers, alcoholics, people living with HIV, past TB patients, elderly individuals, and household contacts of TB patients.
• Identification of subclinical/asymptomatic TB cases through AI assisted chest X ray screening.
• Case detection efforts are being genuinely expedited to reduce the time to diagnosis.

TB Notification Data

The increase in TB notifications compared to last year is slight(+220 cases). Increased notifications between Dec 7, 2024, and Feb 22, 2025, against same intervals of last year: +44,585 cases.

• These increments cannot be considered solely as the impact of the intensified campaign, because TB notifications have been hardly escalating for some years now:
• 2021: 21,35,830 cases
• 2022: 24,22,121 cases
• 2023: 25,37,235 cases
• 2024: 26,18,499 cases

Challenges and Limitations

Overclaim of Campaign Efficacy

• The government’s assumption that all 3.5 lakh cases in intervention districts were detected solely due to the campaign is dubious.
• The near statistics of total TB notifications across India only suggests that many of these cases would have been identified in the absence of the campaign.

Low Utilization of X Ray Screening

• Though the campaign claimed a new strategy to early detection using chest X rays, only 3.8 lakh of the 10 crore (100 million) people screened (3.8%) were reported to have undergone an X ray.
• The National TB Prevalence Survey (2019-2021) estimates that 42.6% of TB cases might have been missed without an X ray, thus making it a very useful tool.
• This was a further dampener on campaign efficacy: if not all the 3.8 lakh X ray screenings were meant for asymptomatic cases in the campaign, the campaign did not have other tools for intervention.

Poor Infrastructure

• Deployment was limited to 836 portable X ray vans across 455 districts, affecting coverage.
• Meanwhile, AI assisted chest X ray interpretation tools remain untested and unapproved by Health Technology Assessment (HTA).

Short Duration & Unrealistic Goal

• The 100-day campaign is too brief to achieve meaningful long-term TB reduction.
• Given India’s high TB burden, eliminating TB by 2025—as envisioned by Prime Minister Narendra Modi—appears overly ambitious without sustained and improved interventions.

While the 100-day intensified TB elimination campaign likely improved case detection to some extent, its overall impact has been overstated. Key limitations, including low X-ray screening coverage, inadequate infrastructure, and a short intervention period, undermine the effectiveness of the initiative.

Source: TH

India’s Tuberculosis (TB) Elimination Program

3. River Dolphin Conservation in India

Context:

The recent population study released by the Ministry of Environment, Forests and Climate Change reports 6,327 river dolphins in India, highlighting the critical status of these freshwater mammals. The study also raises concerns regarding their threats, ecological role, and conservation strategies. A deeper analysis is essential to understand whether existing efforts are sufficient or if stronger intervention is needed.

River Dolphins

River dolphins are categorized into facultative and obligate species, each with unique habitat preferences and conservation concerns.

Facultative River Dolphins (Both Freshwater and Marine)

• Irrawaddy dolphin (India: 155 in Chilka Lake; also found in Sunderbans).
• Tucuxi (Amazon and Orinoco Rivers).
• Yangtze finless porpoise (China).

Obligate River Dolphins (Exclusively Freshwater)

• Ganges river dolphin (found in Ganges and Brahmaputra).
• Indus river dolphin (State aquatic animal of Punjab; only 3 spotted in Beas River, India; 1,800 survive in Pakistan).
• Yangtze river dolphin (China; presumed extinct since 2007).

Key Analytical Insights

• The Indus river dolphin’s numbers in India are critically low, raising concerns about its survival.
• The Yangtze river dolphin’s extinction serves as a warning for India’s conservation efforts.
• Irrawaddy dolphins have stable populations in Chilka Lake, driven by eco-tourism, highlighting the role of conservation-linked tourism.

Adaptations

The Ganges and Indus river dolphins have evolved unique adaptations to survive in muddy, freshwater environments with low visibility.

Sensory Adaptations

• Echolocation-based navigation (biosonar system for detecting objects).
• Melon (forehead mass) as a sound lens for focusing ultrasonic waves.
• Poor eyesight:
  • Eyes only 1 cm across, lacking an eye lens.
  • Limited to detecting light direction rather than forming images.
  • Small visual processing areas in the brain but enhanced hearing regions.

Key Analytical Insights

• The shift from vision to echolocation highlights their dependence on acoustic signals for survival.
• Increasing water pollution (chemical contaminants, noise pollution) could disrupt their echolocation ability, threatening their survival.

Conservation Challenges

Despite their legal protection under the Wildlife Protection Act (1972), river dolphins in India face multiple anthropogenic (human-induced) threats.

1. Habitat Destruction & River Pollution

• Dam construction (e.g., Farakka Barrage) disrupts water flow and isolates populations.
• Chemical pollutants from industries and agriculture contaminate rivers, affecting dolphin health.

2. Overfishing & Bycatch Mortality

• Declining fish populations reduce dolphin food supply.
• Accidental entanglement in fishing nets (bycatch) leads to high mortality rates.

3. Poaching & Use in Traditional Medicine

• Dolphin oil and body parts are used in folk medicine for arthritis and muscular strains, fueling illegal hunting.

Key Analytical Insights

• Dams and pollution are systemic threats, requiring long-term solutions like habitat restoration and sustainable water management.
• Bycatch reduction measures (modified fishing nets, dolphin-safe zones) are urgently needed.
• Stronger enforcement against poaching is necessary to curb illegal hunting.

4. Conservation Efforts: Are They Sufficient?

Current Strategies

• Project Dolphin (Launched 2020): Aims to protect river dolphins through habitat conservation and awareness campaigns.
• Ganges Dolphin Conservation Action Plan (2010-2020): Focused on reducing pollution, promoting eco-tourism, and improving research.
• Biosphere reserves & dolphin sanctuaries:
  • Vikramshila Gangetic Dolphin Sanctuary (Bihar).
  • Chambal National Sanctuary (MP, UP, Rajasthan).

Limitations & Gaps

• Lack of effective monitoring: The actual population trends remain unclear, despite advancements in tracking methods.
• Limited expansion of conservation areas: No new protected zones have been added in recent years.
• Weak enforcement against poaching & habitat destruction.

Analytical Insights

• While conservation frameworks exist, implementation gaps reduce their effectiveness.
• More dolphin sanctuaries should be designated to protect critical habitats.
• Stronger pollution control and stricter enforcement of conservation laws are needed.

Way Forward

1. Expansion of Protected Areas & Dolphin Reserves

• Increase the number of dolphin sanctuaries along the Ganges and Brahmaputra rivers.
• Designate protected zones in the Beas River to prevent Indus river dolphin extinction in India.

2. Stricter Regulation of Fishing Practices

• Promote dolphin-safe fishing gear to prevent bycatch.
• Impose seasonal fishing bans in high-risk zones.

3. Pollution Control & Sustainable Water Management

• Reduce industrial effluents & agricultural runoff in dolphin habitats.
• Implement stricter wastewater treatment laws for rivers.

4. Community Involvement & Eco-Tourism

• Successful model: Chilka Lake’s Irrawaddy dolphins attract eco-tourists, boosting conservation efforts.
• Community-driven conservation programs should be expanded to other regions.

4. The IndiaAI Mission

Context:

The IndiaAI Mission, worth ₹10,371.92 crore, aims at driving India’s artificial intelligence development and reducing the dependence on foreign AI models through indigenous capacity building. In this sense, the mission has aims in compute infrastructure, datasets, model development, safety, and skill building. It is a mission, too, that stands of great importance in light of rapid advances in AI technology across the globe and a rapidly emerging necessity for developing culturally and linguistically relevant AI tools for India’s diversity.

Key Pillars and Their Strategic Impact

AI Kosha

• Aim: Creating a national dataset platform for supplying quality Indian data, non personal, for the purpose of conducting AI research.
• Initiatives Underway: Initial datasets contain translation models for Indian languages.
• Barriers
  • Very few,” annotated high quality datasets for several Indian languages.
  • AI models developed hitherto have a bias toward English language content.
• Impacts: A “major enabling factor” for AI models which train on Indian languages, dialects, and local contexts, leading to much higher accuracy and relevance in India.

Democratizing AI Infrastructure

• Aim: Provide GPU access to startups and researchers who cannot afford costly AI hardware for themselves.
• Current Progress: 14,000 GPUs deployed through empaneled data centers; expansion is planned quarterly.
• Hurdles
  • Because they include allocation management in the ongoing analysis—fairness of allocation and efficiency of distribution will be very important in this regard.
  • Scalability issues because of the increasing demand for AI across the world, with the rise of GPU shortages.
• Impact: Levels the playing field for Indian AI startups, helping them compete with their wealthy global AI counterparts.

AI Safety & Governance

• Aim: Setting up the AI Safety Institute of India to manage risks in deploying artificial intelligence and develop ethical guidelines.
• Current Progress: Awaiting a formal launch.
• Barriers
  • Lack of a formal regulatory framework for AI in India.
  • Threats of misinformation, deepfakes, algorithmic bias, etc., due to AI adoption.
• Impact: This is making AI secure, transparent, and explainable a must have condition for public trust and sectoral adoption in areas like healthcare and finance.

Indigenous AI Model Development

• Aim: Develop India’s own artificial intelligence foundation models instead of relying on OpenAI, Google, or Meta.
• Current Progress: 67 proposals were received concerning AI models supported by the government.
• Challenges
  • Mining cost. Large artificial intelligence models with localized training require enormous computing resource availability.
  • Deep expertise is needed in the area of AI development.
• Impact: Diminish reliance on foreign AI models, thereby boosting the sovereignty of Indian AI and strengthening its global competitiveness.

AI Innovation & Skill Development: Building a Talent Pipeline

• Objective: Support AI research through the IndiaAI Innovation Centre and FutureSkills initiative.
• Current Progress: Plans to set up AI labs in Tier-2 & Tier-3 cities.
• Challenges:
  • Bridging the gap between industry needs and academic research.
  • Addressing brain drain—keeping top AI talent in India.
• Impact: Ensures a strong domestic talent base, crucial for sustaining AI innovation.

Assessment of the IndiaAI Mission

Initiative	Progress	Challenges	Strategic Impact
AI Kosha (Data Infrastructure)	Launched, initial datasets	Scaling high-quality, diverse datasets	Enables AI models adapted to India
Common Compute (GPU Access)	14,000 GPUs deployed	Allocation, expansion amid global shortages	Lowers barriers for AI startups
AI Safety Institute	Planned	No clear regulatory framework yet	Essential for responsible AI use
Indigenous AI Models	67 proposals received	Costly, high expertise required	Strengthens AI independence
Innovation & Skills Development	AI labs planned in smaller cities	Talent retention, industry-academia gap	Expands India’s AI talent pool

Source: Mint

5. Centre’s Special Assistance Scheme

Context:

Almost 97% of the entire financing of ₹1.25 trillion, provided by the Special Assistance scheme for states, has been approved by the Centre making interest free loans for a period of 50 years available to the states for enhancing capital investments and reforms.

Key Features

Fund Allocation & Utilization

• Total Revised Allocation (FY25): ₹1.25 trillion (originally ₹1.5 trillion).
• Approved Amount (First 10 months): ₹1.22 trillion (~97% of allocation).
• Breakdown of Fund Usage
  • ₹55,000 crore: Allocated based on states’ share of central taxes & duties.
  • ₹95,000 crore: Linked to reform implementation upon such reforms as:
    • Iconic tourism destination development.
    • Vehicle scrappage incentives.
    • Development of industry.
    • Advancement of NCR development.

Desirable Conditions for Assistance

• As in other Centrally Sponsored Schemes (CSSs).
• Transparency in fund management.
• Capital expenditure renderable additional, not alternative, to state budget expenditure.
• Others: Land reforms.

Genesis of the Scheme

• Initiated in FY21, with the initial allocation of ₹12,000 crore.
• FY22: Enhanced to ₹15,000 crore.
• FY23: Increased manifold to ₹1.07 trillion, with ₹27,000 crore contingent on state-specific reforms.
• FY24: Allocation of ₹1.3 trillion, out of which ₹30,000 crore constitutes the outcome-based assistance.

Strategic Implications

• For States
  • Increase capital investments in infrastructure, tourism, and industrial development.
  • Long-term fiscal space with no immediate debt burden on the states.
  • Encourages adherence to central policies & transparency in fund utilization.
• For the Centre
  • Ensures uniform economic development across states.
  • Encourage state-level structural reforms in governance and urban planning.
  • Augment public investment in capital projects aiding economic recovery.

The Special Assistance scheme ensured capital investments biennially, and with reforms implemented, have been a sharper focus on the development of states. The fact that 97% of the funds have been approved is itself a testimony to the efficiency of the scheme in its disbursement, and to the strong fiscal coordination between the Centre and states.

6. India’s Semiconductor

Domestic Semiconductor Production Initiative

• Government Announcement:
  • India’s first domestically manufactured semiconductor chip will roll out in 2025.
  • Aim: Reduce import dependency and boost domestic production.
• Key Manufacturing Facilities Under Construction:
  • Tata Semiconductor Assembly and Test facility (Morigaon).
  • Dholera Semiconductor Fabrication Facility (fab) by Tata Electronics & Taiwan’s Powerchip Semiconductor Manufacturing Corporation.

Semicon India Programme (2021)

• Objective: Develop semiconductor & display manufacturing ecosystem.
• Budget and Expenditure Trends:
  • FY23: Budgeted ₹200 crore → Spent ₹13 crore.
  • FY24: Budgeted ₹3,000 crore → Revised ₹1,503 crore → Spent ₹681 crore.
  • FY25: Budgeted ₹6,903 crore → Revised ₹3,816 crore.
  • RE for FY25 doubled compared to FY24, indicating better implementation focus.

Rising Import Dependency on Semiconductor Chips

• Import Trends (FY16–FY24):
  • Monolithic Integrated Circuits (ICs): ₹1.05 lakh crore in FY24 (2,000% increase from FY16).
  • Memory Chips: 4,500% increase from FY16.
  • Amplifiers: 4,800% increase from FY16.
• Share of Semiconductor Chips in Total Imports:
  • Monolithic ICs: Increased from 0.19% (FY16) to 2.09% (FY25, April-November).

Key Semiconductor Suppliers to India

• Major Suppliers (Past 10 Years):
  • China (Dominant supplier, except FY19).
  • Hong Kong, Japan, South Korea, Singapore, Taiwan.

India’s Role in the Global Semiconductor Value Chain

• Strengths:
  • Growing capabilities in assembly, testing, packaging (ATP), and fabrication (fab).
• Challenges & Gaps:
  • No major breakthroughs in critical areas such as:
    • EDA (Electronic Design Automation) software (chip design tools).
    • Core IP (patents & licensing).
    • Wafers & fab tools (raw semiconductor materials & manufacturing machinery).
    • Advanced chip design.

Way Forward

• India’s semiconductor industry is growing but faces challenges in core R&D, materials, and high-end manufacturing.
• The Semicon India Programme needs better execution to reduce reliance on imports.
• With increasing investments and strategic partnerships, India is positioning itself as a key player in semiconductor assembly and fabrication.

7. India’s Startup Boom

Context:

India has witnessed an unprecedented startup boom, fueled by government enthusiasm, incubators, and a growing tech ecosystem. However, concerns remain about whether this momentum can be sustained without unintended negative consequences, similar to India’s past import-substitution policies.

The Scale of India’s Startup Ecosystem

• India is the world’s third-largest startup ecosystem (after the US and China), with over 120,000 startups registered in the last decade.
• Incubation centers across IITs, IIMs, and Nasscom are fostering innovation.
• Atal Tinkering Labs in 10,000 schools are encouraging early innovation among students.

Despite these positive trends, structural challenges exist that could hinder long-term success.

Challenges Facing Indian Startups

A. Limited Early Adopters and Price Sensitivity

• Indian consumers are highly price-sensitive (“paisa vasool” mindset).
• Even with interest in new tech, affordability is key.
• Adoption of new technologies tends to be cautious, with many preferring a “wait and see” approach.
• Consumers expect products to be priced at “Indian market prices”, making profitability difficult for startups.

B. High Startup Failure Rate and Funding Gaps

• 90% of startups fail globally—India is no exception.
• Indian startups struggle with limited domestic venture capital.
• Income tax policies may not be adequately supporting startup investment.

C. Lessons from UPI: A Blueprint for Scaling Startups

Despite these challenges, India has demonstrated tech-driven success stories—the most striking example being Unified Payments Interface (UPI).

Why did UPI succeed?

1. Government Support: Developed by NPCI (a not-for-profit entity backed by RBI and Indian Banks’ Association).
2. Part of a Broader Digital Stack: Integrated with Aadhaar, eKYC, and DigiLocker for seamless transactions.
3. Incentives for Adoption: Mandates (Aadhaar-bank linking), cashbacks, and zero charges for small transactions boosted adoption.
4. Open API Architecture: Enabled banks and fintechs to innovate freely, increasing competition.
5. Gradual Cultural Shift: Over time, digital payments became a norm, even for rickshaw drivers and fisherwomen.

Policy Tweaks to Ensure Startup Success

To replicate UPI’s success in startups, India may need policy interventions such as:

• Government-backed innovation platforms (similar to NPCI).
• Startup-specific incentives (e.g., tax breaks, subsidies, zero-cost incubation).
• Encouraging domestic venture capital investment through tax benefits.
• Building trust and familiarity with technology through public awareness initiatives.

The UPI model demonstrates that policy, infrastructure, and incentives can drive mass adoption of new technology. If India applies similar principles to its startup ecosystem, it could unlock world-scale success and avoid the pitfalls of past policy missteps.

Source: BS

8. Bridging the Gender Gap in Entrepreneurship and Finance

Introduction

While India has made significant progress in women’s economic participation, gender disparities in entrepreneurship, employment, and access to finance remain stark. Despite increased participation in SHGs (Self-Help Groups) and government-backed loan schemes, women entrepreneurs still face funding and credit access challenges.

Gender Disparities in Finance and Entrepreneurship

A. Startup Funding Gap

• Male entrepreneurs raised $10.8 billion for tech startups in 2004, while women-founded firms secured only $1 billion.
• India ranks 57th out of 65 countries in female entrepreneurship progress.
• Women-led enterprises account for just 13.76% of all businesses, contributing 17% to GDP (global average: 37%).

B. Employment and Workforce Participation

• Only 19.2% of Indian women participated in the workforce in 2022 (ILO data).
• In financial markets, the gender ratio is 20:1 in equity dealing rooms.
• Female Labour Force Participation Rate (LFPR) rose from 23.3% in FY18 to 37% in FY23, driven by rural employment initiatives.

Government Initiatives Supporting Women Entrepreneurs

A. Lakhpati Didi Scheme

• Ensures ₹1 lakh minimum annual income for SHG women members.
• 11.5 million women have become ‘Lakhpati Didis’ through the initiative.

B. Financial Inclusion and Credit Access

• Pradhan Mantri Jan Dhan Yojana (PMJDY): 303.7 million of 545.8 million bank accounts belong to women (as of January 2025).
• Pradhan Mantri Mudra Yojana (PMMY):
  • 68% of loans sanctioned to women entrepreneurs.
  • 77.7% of Stand Up India beneficiaries are women.
  • However, while women hold 67.92% of Mudra loan accounts, they receive only 44.46% of total credit sanctioned.

Declining Trends in Women’s Access to Credit

A. Decline in Women Borrowers under Mudra Scheme

• SFBs (Small Finance Banks): Women borrowers dropped from 1.8M (FY22) to 700K (FY24).
• Private Banks: Women borrowers declined from 4.5M (FY22) to 1.1M (FY24).

B. Fluctuating Loan Disbursements

• Public Sector Banks (PSBs): Loans to women fell by ₹4,000 crore (FY22), rose by ₹41,000 crore (FY23), then fell ₹21,000 crore (FY24).
• SFBs: Declined from ₹10,000 crore (FY22) to ₹7,000 crore (FY24).
• Microfinance Institutions (MFIs): Fluctuated from ₹2,000 crore (FY22) to ₹18,000 crore (FY23), then dropped to ₹10,000 crore (FY24).

Past Efforts and Challenges in Women-Centric Banking

• Bharatiya Mahila Bank, a dedicated women’s bank, failed due to limited outreach and operational inefficiencies.
• Women-led cooperative banks (e.g., SEWA Bank, Mann Deshi Bank) remain geographically restricted.
• Jan Dhan Plus (2019) by Bank of Baroda and Women’s World Banking (WWB) aims to improve women’s savings habits.

Bridging the Gender Gap

1. Increase Gender-Specific Financial Products
   • Expand Jan Dhan Plus across banks.
   • Introduce higher credit limits for women-led startups under government schemes.
2. Improve Credit Disbursement to Women
   • Address funding disparities in Mudra loans by revising lending policies.
   • Encourage higher investment from private VCs in women-led businesses.
3. Enhance Women’s Entrepreneurial Ecosystem
   • Set up women-focused startup incubators.
   • Strengthen mentorship networks for female entrepreneurs.
4. Scale Up Successful Models
   • Expand SHG-led entrepreneurship programs like Lakhpati Didi.
   • Improve financial literacy and digital banking access for rural women.

If India aims to achieve developed nation status by 2047, narrowing the gender gap in entrepreneurship, employment, and finance is critical. While progress is evident, sustained policy action, better access to credit, and cultural shifts are essential for women to thrive in India’s economy.

Source: BS

9. India: The Prime Target for Hacktivist Attacks in 2024

Context:

India has become the top global target for hacktivist attacks, accounting for 13% of worldwide incidents in 2024, as per the High Tech Crime Trends Report – 2025 by Group-IB. It also ranks among the top three countries for data leaks, advanced persistent threats (APTs), and attacks by Initial Access Brokers (IABs).

Key Findings from the Report

A. Hacktivist Attacks

• India leads globally in hacktivist attacks (13%), followed by Israel (7%).
• In the Asia-Pacific (APAC) region, India alone accounted for 49.3% of such attacks, with Indonesia trailing at 14%.
• Education institutions suffered the most, followed by government, military, and financial sectors.
• Key reasons for the surge:
  • Regional geopolitical tensions with neighboring countries.
  • India’s diplomatic stance on Palestine and Israel.
  • Retaliatory cyberattacks from domestic and foreign hacktivist groups.
  • Increased coordination of politically motivated cyber activities.

B. Data Leaks & Cybercrime

• India ranked third globally for public data leaks, behind the US and Russia.
• 60 data breaches in India contributed to 1,107 global instances of public data exposure.
• Most commonly exploited data:
  • Email addresses
  • Phone numbers
  • Passwords
• 2024 Dark Web statistics:
  • 248.9 crore unique email addresses leaked and sold.

C. Advanced Persistent Threats (APTs)

• India leads APT attacks in APAC (10.3%), but globally, its share is only 2%.
• The US, Israel, Egypt, and GCC nations face a higher global share (3–6%).
• APTs are highly sophisticated cyberattacks, often state-sponsored, targeting governments and large enterprises.

D. Initial Access Brokers (IABs) Attacks

• India leads IAB attacks in APAC (20%), but globally, it ranks lower at 2.3%.
• The US (35.5%) dominates worldwide, followed by Brazil (6.3%) and several European nations.
• IABs gain access to corporate networks and sell this access on the Dark Web.

E. Compromised Hosts

• India ranked second globally for compromised hosts (106,312), behind Pakistan (108,674) in 2024.

The Growing Cybersecurity Threat

• Hacktivist attacks are undermining trust in India’s digital infrastructure.
• A lack of robust cybersecurity measures makes key sectors (education, government, finance, military) highly vulnerable.
• The rise of politically motivated cyber warfare highlights India’s need for stronger defensive strategies.

Strengthening Cyber Defenses

1. Enhance Cybersecurity Infrastructure
   • Implement AI-driven threat detection systems.
   • Increase cyber awareness training for organizations.
2. Strengthen Policy & Regulation
   • Update cybercrime laws to address evolving threats.
   • Increase international cooperation on cyber intelligence.
3. Improve Enterprise Security Measures
   • Mandate multi-factor authentication (MFA) and stronger encryption.
   • Establish real-time threat monitoring systems.
4. Public-Private Collaboration
   • Encourage collaboration between government agencies and private firms to combat cyber threats.

India’s rising cyber vulnerabilities demand urgent action from policymakers, businesses, and cybersecurity experts. With hacktivism, data breaches, and cyber warfare increasing, strengthening national cyber resilience is critical to securing India’s digital future.

Source: BS

Banking/Finance

1. Futures and Options (F&O) Trading

Context:

Leading financial services firm Motilal Oswal Financial Services will bar its clients from taking intraday short-selling position on stocks that are not part of the futures and options (F&O) segment. Motilal Oswal Financial Services, with 10.3 lakh clients at the end of January, is the first large brokerage to undertake such a move at a time when the markets have been battered for five straight months.

Futures and Options (F&O) Trading

Futures and Options (F&Os) are derivatives which can be traded in financial markets for all and sundry. They are primarily used to hedge risk, speculate outcomes, and diversify portfolios.

Futures Contracts

• Definition
  • An agreement legally binding between two parties in contract to buy or sell an asset (stocks, commodities, indices, or currencies) at a predetermined price, at a specific future date.
• Obligation
  • Buyer and seller must fulfill the contract. It applies in the event where there exist movements in the market price.
• Profit & Loss
  • If the market price rises above the agreed price, the buyer profits while the seller incurs a loss.
  • The seller profits and the buyer incurs loss if the market price tumbles.
• Use Cases
  • Traders and institutions use it frequently for hedging against price fluctuations or speculating about their possible price changes in the future.

Options Contracts

• Definition
  • The contract refers to a financial contract which entitles the buyer, but does not obligate the buyer, to the right to buy (Call Option) or sell (Put Option) an asset at a predetermined price before or on expiration of the contract.
• Types of Options
  • Call Option: Grants the bearer the right to purchase the asset at a set price. Profitable when the market price is higher.
  • Put Option: Grants the bearer the right to sell the asset at a set price. Profitable when the market price is lower.
• Risk & Reward
  • Losses incurred by a buyer are maximally equal to the price of the option. However, profits can be very high when the market moves favorably.
  • The seller or writer of the option can incur losses that may be of unlimited possible amounts.
• They Use This For
  • Hedging against price risk, sources of income, as well as tactical trading methods.

Major Differences between Futures and Options

Feature	Futures	Options
Obligation	Buyer and seller must execute contract	Buyer has a choice; seller is obligated if exercised
Risk	Unlimited for both parties	Limited for buyer, unlimited for seller
Profit Potential	Depends on price movement	Buyer’s profit depends on market movement, seller gains limited to premium
Flexibility	No flexibility; must settle at expiry	High flexibility; can expire worthless or be exercised
Cost	No upfront premium, margin required	Buyer pays a premium, which is the maximum loss

Benefits and Risks Associated with F&O Trading

• Benefits
  • Leverage increases the sensitivity ratio, allowing owners to expose larger amounts of money without raising their liability.
  • Hedged against adverse price movements.
  • Highly liquid in major financial markets.
• Risks
  • Very high volatility may lead to severe losses.
  • Understanding high market and having a strategized plan are required before making an entry.
  • Margin calls in futures trading often mean financial distress.

2. Issues for the New SEBI Chief to Address

Investor Protection as the Primary Goal

• SEBI’s Preamble outlines three objectives: market development, regulation, and investor protection. However, investor protection should take precedence.
• Small investors’ participation is crucial for market stability, and their education must be prioritized.
• Investor education has been underfunded, with only ₹2.8 crore allocated in 2023-24.
• The National Institute of Securities Markets (NISM) was originally meant to have a dedicated School for Investor Education, but its focus has shifted towards training SEBI officials and intermediaries.

Expanding Investment Advisory Services Nationwide

• India lacks a strong network of trained and ethical investment advisors, particularly in rural areas.
• The SMARTS program, aimed at training advisors, needs more momentum to replace product pushers.

Improving Quality of SEBI’s Adjudication Orders

• Adjudicating Officers (AOs) often lack judicial training, leading to weak orders that get overturned at the Securities Appellate Tribunal (SAT).
• Some officers are appointed as AOs due to underperformance elsewhere—this must change.
• SEBI should consider judicial officers on deputation for better enforcement.

Speeding Up Enforcement Actions

• Surveillance, investigation, and enforcement take years, allowing market manipulators to profit unjustly.
• SEBI must focus on speed and exemplary punishment to deter wrongdoers.

Ensuring Regulatory Stability & Market Orderliness

• Conflict of interest and asymmetry of information remain major risks in the securities market.
• Frequent amendments to Insider Trading Regulations and Related Party Transaction norms create instability. Regulatory clarity and consistency are key.

Rethinking the ‘Independent Director’ Definition

• The definition of ‘Independent Directors’ should not be frequently changed.
• Independence is a state of mind and cannot be legislated or overregulated.

The new SEBI Chief is encouraged to lead with decisiveness, balancing regulation with market growth. The letter expresses good wishes and high expectations for a productive tenure.

3. SBI Asmita Digital SME Loan & Nari Shakti Debit Card

Empowering Women in Business & Banking

• State Bank of India (SBI) has launched two women-centric financial products:
  • ‘SBI Asmita’: A collateral-free digital SME loan for women entrepreneurs.
  • ‘Nari Shakti’ Platinum Debit Card: A RuPay-powered debit card catering to women’s financial needs.

SBI Asmita: Digital Loan for Women Entrepreneurs

• Objective: Provide hassle-free digital financing for women-led MSMEs.
• Key Features:
  • No collateral required.
  • Uses APIs (Application Programming Interface) to automate data verification (GSTIN, bank statements, CIC database).
  • No physical document submission.
  • Quick loan assessment & sanction based on business requirements.
• Special Add-On:
  • Top-performing women entrepreneurs under the scheme will receive entrepreneurial and management training.

‘Nari Shakti’ Platinum Debit Card

• Eco-friendly card: Made from 100% recycled plastic.
• Benefits across multiple sectors:
  • Entertainment, shopping, travel, lifestyle, insurance, etc.
  • RuPay-powered, offering exclusive discounts & privileges.

SBI’s Vision & Leadership Statements

• Challa Sreenivasulu Setty (Chairman, SBI):
  • SBI Asmita is designed for fast, easy finance for women-led MSMEs through a fully digital, self-initiated process.
  • The ‘Nari Shakti’ debit card enhances financial inclusion and caters to diverse financial needs of women.
• Vinay Tonse (MD – Retail Banking & Operations, SBI):
  • SBI Asmita is a comprehensive solution for MSMEs, covering working capital and capital investment needs via digital mode.

Additional Initiatives in Women’s Banking

• Bank of Baroda (BoB) Initiatives for Women NRIs:
  • ‘bob Global Women NRE & NRO Savings Account’:
    • Auto sweep facility for higher interest earnings.
    • Concessional home & auto loan rates, reduced processing fees.
    • 100% locker rent concession.
    • Customized debit card with free domestic & international airport lounge access.
    • Free Personal & Air Accident Insurance coverage (first among PSBs to offer NRI insurance benefits).

A Step Towards Women’s Financial Inclusion & Empowerment

• SBI’s Asmita loan & Nari Shakti debit card align with the broader goal of financial empowerment for women entrepreneurs.
• Tech-driven finance solutions will enhance access to capital & banking services for women-led MSMEs.
• Bank of Baroda’s exclusive NRI women’s banking products offer premium benefits to female customers abroad.

These initiatives strengthen financial inclusion and women’s participation in India’s banking and business ecosystem.

Source: Business Line

4. US Creates Strategic Crypto Reserve

Context:

On March 2, 2025, US President Donald Trump announced the creation of a US Crypto Strategic Reserve comprising Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). This landmark move is expected to legitimize cryptocurrencies further and potentially fuel a major bull run in the market.

Market Impact

• Trading Volume Surge: The announcement led to an inflow of nearly ₹300 billion overnight in the crypto market.
• Institutional Adoption:
  • Balaji Srihari (CoinSwitch VP) believes the move could spark a global crypto accumulation race.
  • Bitcoin and Ethereum are expected to retain dominance due to institutional backing and security.
  • The inclusion of XRP, Solana, and Cardano could boost their adoption significantly (Raj Karkara, COO, ZebPay).
• ETF Influence:
  • US Bitcoin Exchange-Traded Funds (ETFs) have driven massive institutional inflows.
  • BlackRock now recommends cryptos as part of its model portfolio.

Risks and Challenges

A. Market Volatility

• Crypto assets remain highly volatile due to their nascent market stage and sentiment-driven trading (Abhishek Kumar, SEBI-registered RIA).
• Only investors with high risk tolerance should increase exposure.

B. Regulatory Uncertainty

• India’s Crypto Regulation:
  • Cryptos exist in a regulatory grey area, with potential prohibitions through pending legislation.
  • Conflicting oversight from RBI and SEBI increases uncertainty.
• Regulatory Gaps:
  • Lack of centralized oversight enables misleading practices and security vulnerabilities.
  • No traditional consumer protections like deposit insurance or circuit breakers.
• Liquidity Risks:
  • Regulatory shifts or market downturns may reduce liquidity, making it harder to buy/sell assets.

C. Investment Guidelines

• Exposure Limit: Crypto allocation should not exceed 15% of an investor’s portfolio.
• Investment Horizon: A minimum 5-year holding period is recommended.
• Leverage Warning: Excessive leverage should be avoided.

Security Considerations

• Exchange Selection: Choose platforms with a strong security track record and regular audits.
• Multi-Factor Authentication (MFA): Protects against unauthorized access.
• Cold Storage: Significant portions of holdings should be kept offline to prevent hacking.
• Phishing Awareness: Avoid suspicious links and emails.

Taxation and Compliance

• Flat 30% Tax on crypto profits, plus surcharge and cess.
• Tax Deducted at Source (TDS) of 1% applies to most transactions.
• Losses cannot be offset against other gains or carried forward.
• Classification:
  • Long-term holding → Capital Gains Tax.
  • Frequent trading, mining, or arbitrage → Business Income Tax.
• ITR Disclosures:
  • Virtual assets must be reported under Schedule VDA.
  • Holdings on foreign exchanges require disclosure under Foreign Asset Schedule.
  • Individuals with ₹50 lakh+ income must declare holdings under Schedule AL (Assets and Liabilities).

Best Practices for Securing Crypto Assets

• Use a Hardware Wallet: Offline storage for private keys.
• Safeguard Private Keys: Never store digitally; keep written copies in a secure place.
• Create Strong Passwords: Unique passwords for each crypto account.
• Enable 2FA/MFA: Adds extra security against unauthorized access.
• Beware of Phishing Attacks: Avoid unknown links and attachments.
• Keep Software Updated: Regularly install security updates.

The US Crypto Strategic Reserve is a major milestone in mainstream crypto adoption, potentially driving global regulatory acceptance and institutional investment. However, investors must carefully assess risks, follow security measures, and ensure compliance before increasing exposure to digital assets.

Economy

1. India’s Bilateral Investment Treaty (BIT) Framework

Context:

The 2015 model BIT of India did not deliver, since it came into existence with only five agreements (Belarus, Kyrgyzstan, Brazil, UAE, Uzbekistan). Foreign Direct Investment (FDI) inflows have only marginally increased from $60.2 billion (2016 17) to $70.9 billion (2023-24) because of investors’ citing legal unpredictability and restrictive dispute resolution mechanisms.
The current BIT framework adopted to avert the legal challenges as seen in the Cairn Energy and Vodafone cases turned out to be too restrictive for global investors.

Key Highlights:

• Excessive Dispute Resolution Requirements
  • The five years’ local remedy exhaustion rule delays, deferring international arbitration for investors.
  • Introducing a Fork in the Road (FITR) clause or providing a short period of exhaustion should further boost investor confidence.
• Narrow Definition of ‘Investment’
  • It adopts a rigid enterprise based definition, with exclusion of intangible assets and portfolio investments as well as digital investments.
  • This entails moving towards a broader asset based definition regarding attracting much of the investment in tech and the service sectors.
• Omission of MFN Clause
  • India omitted MFN clauses to avoid ‘treaty shopping.’
  • A clearly defined MFN clause provides same substantive protections with respect to MFN clause but not procedural benefits could make investments attractive.
• Weaknesses of Protection under ISDS
  • Indian BIT leaves out the standard of Fair and Equitable Treatment in the lilt and which investors worry about.
  • A balanced FET provision like EU treaties can protect an investor from arbitrary actions of the state while preserving regulatory autonomy.
• No ESG Provisions
  • Most of the current BITs such as EU Canada and Morocco Nigeria embed environmental, social and governance commitments for sustainable investments.
  • India should adopt a calibrated ESG approach to avoid excessive compliance burdens.
• Instability of Policies
  • Uncertainty emerged following the abrupt termination of 77 BITs in 2016.
  • The new framework shall ensure consistency and predictability through transparent stakeholder consultations.

India shall make changes in its BIT framework not bringing it back to the favor of investors, which was the scenario before the year 2016. A balance will boost credibility along with deep integration into the global value chains and rapid economic growth.

Agriculture

1. Makhana: India’s Superfood Revolution

Makhana’s Rise as a Superfood

• Traditionally valued in Ayurveda for its medicinal properties.
• Also known as lotus seeds or fox nuts, it has gained global recognition for its health benefits.
• Nutritional profile:
  • 14.5% fibre and 9.7% protein per 100g.
  • Gluten-free, low-calorie, and suitable for vegan & low-carb diets.
• Its versatility has fueled its adoption in modern cuisine and the clean eating movement, especially in the West.

Makhana’s Global Superfood Status

• Health-conscious consumers are willing to pay a premium for nutrient-rich foods.
• Global superfood market projected to reach $209.1 billion by 2026.
• Makhana is growing in popularity in roasted snacks, protein bars, and smoothies.
• India is positioning itself as a leading producer & global supplier of superfoods.

Economic Impact on India’s Agriculture

• Bihar produces 90% of the world’s makhana.
• The industry generates:
  • ₹100.3 billion in revenue annually.
  • 500,000+ employment opportunities (farmers, processors, traders).
• Government support:
  • Union Budget 2025-26: Announced the Makhana Board to enhance production & exports.
  • Investment in processing facilities & export promotion to improve competitiveness.

Makhana’s Sustainability Factor

• Eco-friendly crop: Requires minimal fertilisers & pesticides, supporting sustainable farming.
• Grows in shallow water bodies, helping:
  • Prevent soil erosion.
  • Maintain biodiversity & improve water quality.
• A low-impact, high-value crop aligning with the global shift to sustainable agriculture.

Makhana’s Future

• Once a traditional snack, now a global superfood.
• A key player in India’s agricultural transformation, impacting health, economy, and sustainability.
• Growing international demand will further boost India’s exports and economic growth.
• With strong government support & increasing consumer interest, makhana is set to shape the future of superfoods worldwide.

Source: BL

2. Women-Led Farming Cooperatives in the Eastern Himalayan Region (EHR)

Women’s Role in EHR Agriculture

• Women contribute over 70% of agricultural labor in the region.
• Active in horticulture, sericulture, and livestock farming.
• Shifting cultivation (Jhum) involves extensive female participation in sowing, weeding, and harvesting.
• Challenges faced:
  • Gender biases & socio-economic barriers.
  • Limited access to credit, land ownership & decision-making power.
  • Lack of institutional support restricting their entrepreneurial potential.

Women-Led Cooperatives: Empowerment through Collective Action

• Solution to gender disparity: Women’s cooperatives provide leadership roles, economic opportunities, and financial independence.
• FAO Insights: Women-led cooperatives contribute to three Sustainable Development Goals (SDGs):
  • No poverty (SDG 1)
  • Gender equality (SDG 5)
  • Economic growth (SDG 8)
• How cooperatives help:
  • Resource pooling & skill-building.
  • Market linkages for better profits.
  • Improved access to institutional support & training.

Women’s Leadership in Cooperatives

• Traditional community cooperatives in EHR were male-dominated due to resource control.
• Recent shift: Women-led models like SEWA Bharat & Prabhavana demonstrate success in tackling gender-based barriers.
• Government Support:
  • Multi-State Cooperative Societies Act (2002) & Ministry of Cooperation (2021) have encouraged women’s participation.
  • Assam’s Mahila Kisan Sashaktikaran Pariyojna (MKSP) (2016-17) empowered 12,500 Self-Help Groups (SHGs).
  • Meghalaya’s Pla Tangka Cooperative Society (PTCS) (2025) aims to strengthen financial access for SHGs.

Impact of Women-Led Cooperatives

• Manipur (Ukhrul District): Ringyuichon Vasum organized SHGs, providing microcredit for organic farming, poultry, embroidery, and weaving. Over 13,000 women benefited, reducing reliance on illicit logging.
• Nagaland (Chizami Village): Seno Tsuhah, a social activist, promoted handloom weaving among local women, providing a steady income & upward mobility.
• Tripura: Jana Unnayan Samiti Tripura (JUST), through the FARM Northeast program, enabled women farmers to gain autonomy in food production and strengthened food security.

Challenges and the Way Forward

• Persistent barriers:
  • Infrastructure gaps & limited credit access.
  • Traditional societal norms restricting leadership roles.
• Policy Enhancements Needed:
  • Strengthen regional coordination: Ministry of Cooperation (MoCOOP) should collaborate with the Ministry of Development of the North Eastern Region (MDONER) & North Eastern Council (NEC).
  • Capacity building: Training in modern farming techniques, financial literacy, and leadership.
  • Market integration: Facilitating direct producer-market linkages to reduce middlemen.
• Encouraging Progress:
  • Women’s participation in cooperatives increased from 2021-2024.
  • Localized training programs needed to further enhance equitable access.

Women-Led Cooperatives as a Force for Change

• Beyond agriculture: These cooperatives serve as agents of social transformation & economic resilience.
• Key to EHR’s growth: In agrarian-dependent states, scaling the cooperative movement can:
  • Boost economic resilience & food security.
  • Enhance gender equity & leadership opportunities.
  • Drive sustainable rural development.
• Future Outlook: With strong policy backing & grassroots empowerment, women-led cooperatives can become the cornerstone of EHR’s socio-economic progress.

3. Rural Co-operative Credit (RCC)

Context:

NABARD’s ₹1,000 Crore Initiative to Modernize Rural Co-operative Credit (RCC) System.

Rural Co-operative Credit (RCC)

Rural Co-operative Credit (RCC) is a system of credit cooperatives that provide credit and savings accounts to rural areas. RCCs are an institutional mechanism that helps address rural poverty and indebtedness. 

How RCCs operate

• RCCs are made up of State Co-operative Banks (StCBs), District Central Co-operative Banks (DCCBs), and Primary Agricultural Credit Societies (PACs). 
• RCCs are intended to provide credit and savings accounts to families and collective enterprises. 
• RCCs are intended to provide credit to marginalized areas and activities at affordable costs. 

Enhancing Technology for RCCs

• Key Players: Government of India, NABARD, and short-term Rural Co-operative Credit (RCC) entities.
• Objective: Establish a shared services entity to modernize technology infrastructure in RCCs, ensuring service parity with commercial banks.
• Investment: Approximately ₹1,000 crore will be invested collectively.

RCC Ecosystem & Its Challenges

• RCC operates on a three-tier system:
  • State Co-operative Banks (StCBs): 34 entities with 2,140 branches (March 2024).
  • District Central Co-operative Banks (DCCBs): 351 entities with 13,759 branches.
  • Primary Agricultural Credit Societies (PACS): 1,06,955 societies across 6.5 lakh villages (March 2023).
• Primary Services:
  • Crop loans & working capital loans for farmers and rural artisans.
  • Major financial support system for rural India.
• Challenges Faced:
  • RCC banks lack loan origination & management systems, credit underwriting standards, and fintech collaborations.
  • Limited individual capacity to invest in technology unlike commercial banks.

Purpose & Structure

• Proposed Structure:
  • Co-owned by Government of India, NABARD, and RCC banks.
  • Non-deposit-taking, non-banking financial company (NBFC) model.
  • Technology investments: Digital banking solutions, fintech integration, transparency in loan underwriting.
• RBI Involvement:
  • In-principle approval granted.
  • Awaiting final clearance in 6-7 months.

Declining RCC Market Share in Agriculture Credit

• RCC share in total agriculture credit:
  • 13% in FY22 → 11% in FY23 → 9.5% in FY24.
• Reason: Commercial banks expanding reach via technology and branch network growth.

Expected Outcomes & Way Forward

• Modernization of RCC banks: Comparable services to commercial banks.
• Greater transparency & efficiency in loan underwriting.
• Boost rural credit penetration, reducing dependence on commercial banks.
• Enhanced financial inclusion for farmers and rural entrepreneurs.

This initiative marks a significant step in digitizing rural credit infrastructure, ensuring that cooperative banks remain competitive and relevant in India’s evolving financial landscape.

4. State Governments’ Farmer Incentives

Overview of Recent State Announcements

Several state governments have announced additional incentives for farmers, complementing the Centre’s PM-KISAN disbursement. These incentives include:

• Topping up PM-KISAN funds with additional state allocations.
• Providing per-hectare cultivation benefits.
• Offering bonuses over the Minimum Support Price (MSP).

While these measures aim to support farmers, they also increase the financial burden on state exchequers.

Key State-Level Initiatives

State	Additional Support for Farmers
Madhya Pradesh	₹ 4,000 per hectare for paddy growers (₹ 480 crore burden); ₹ 125 per quintal bonus for wheat (₹ 2,600 per quintal total price).
Rajasthan	PM-KISAN top-up to ₹ 9,000 per annum; ₹ 150 per quintal wheat bonus.
Chhattisgarh	Krishak Unnati Yojana (₹ 10,000 crore) includes ₹ 19,257 per acre subsidy and paddy purchase bonus.
Odisha	CM-KISAN scheme (₹ 2,020 crore allocation); ₹ 10,000 per annum (₹ 4,000 under CM-KISAN + ₹ 6,000 under PM-KISAN); ₹ 12,500 livelihood support for landless farmers. Paddy procurement at ₹ 3,100 per quintal (vs. ₹ 2,300 MSP).

Challenges and Concerns

• Increased Fiscal Burden: States must allocate additional resources, straining budgets.
• Limited Crop Diversification: Most incentives focus on wheat and paddy, discouraging a shift to pulses, oilseeds, and horticulture.
• Storage & Procurement Issues: High MSP-based procurement leads to surplus stocks and logistical challenges.

Alternative Approaches for Supporting Farmers

Economists have debated three key policy mechanisms:

1. Enhancing MSP-based procurement – Ensuring direct government purchases at MSP.
2. Direct Benefit Transfers (DBT) – Providing fixed financial support to farmers via PM-KISAN.
3. Deficiency Price Payment (DPP) – Compensating farmers when market prices fall below MSP.

A study by C.S.C. Sekhar at Delhi University estimated that a combination of MSP procurement and DPP would cost the government ₹ 2.65 lakh crore to ₹ 3.4 lakh crore annually (based on 2019-20 prices).

Direct Benefit Transfers (DBT) as a Sustainable Alternative

• The study suggests an annual per-hectare payment of ₹ 19,875–₹ 25,980, ensuring direct farmer income support.
• Current PM-KISAN disbursement (₹ 6,000 per year) is much lower than this estimate.
• If the Centre covers ₹ 10,000–₹ 12,500 per farm, the cost would be ₹ 1.44–₹ 1.89 lakh crore per year—cheaper than MSP-based procurement.

Trade-offs & Policy Recommendations

• MSP-based procurement is essential for wheat and paddy, ensuring food security.
• For other crops (pulses, oilseeds, etc.), direct income transfers (DBT) may be a better alternative.
• Tenant farmers are left out of DBT schemes since payments are linked to land ownership.
• A hybrid model (MSP for key crops + DBT for others) may be the best solution.

While state governments are increasing direct transfers and MSP bonuses, the long-term fiscal sustainability of these incentives is in question. A balanced approach—with a mix of targeted procurement and direct income support—could help secure farmer incomes while minimizing budgetary strain.

Awards

1. Sahitya Akademi Awards 2024

The Sahitya Akademi Awards 2024 were conferred on 23 distinguished writers at a ceremony during the ongoing “Sahityotsav: Festival of Letters”. The annual awards, recognizing excellence in Indian literature across various genres, were announced in December 2023.

Key Awardees and Their Works

Poetry & Novels

• Gagan Gill (Hindi) – Main Jab Tak Aai Bahar (Poetry)
• Easterine Kire (English) – Spirit Nights (Novel)
• Sohan Koul (Kashmiri) – Psychiatric Ward (Novel)
• Paul Kaur (Punjabi) – Sun Gunvanta Sun Budhivanta: Itihaasnama Punjab (Poetry)
• Aron Raja Basomatary (Bodo) – Swrni Thakhai (Novel)

Short Stories

• Yuva Baral (Nepali) – Chhichimira
• Hundraj Balwani (Sindhi) – Purzo

Other Notable Awardees

• K. Jayakumar (Malayalam)
• Haobam Satyabati Devi (Manipuri)
• Dileep Jhaveri (Gujarati)
• Sameer Tanti (Assamese)
• Mukut Maniraj (Rajasthani)
• Dipak Kumar Sharma (Sanskrit)

Each awardee received a plaque, a shawl, and ₹1 lakh.

Facts To Remember

1. Myanmar will hold elections in January, says Min Aung Hlaing

Myanmar’s junta chief General Min Aung Hlaing said he would hold an election in December or January, the first in the war-torn nation since the military staged a coup in 2021.

2. North Korea unveils nuclear-powered submarine in a first

North Korea unveiled for the first time a nuclear-powered submarine under construction, a weapons system that can pose a major security threat to South Korea and the U.S.

3. India Wins ICC Champions Trophy after defeating New Zealand

India entered the ICC Champions Trophy as firm favourite and in a nail-biting final, the Men in Blue held their nerve to edge past New Zealand by four wickets with an over to spare at the Dubai International Cricket Stadium.

4. Madhav National Park Declared India’s 58th Tiger Reserve

It is the 9th tiger reserve in Madhya Pradesh, which has the highest number of tiger reserves in the country. Madhav National Park in Madhya Pradesh has been designated as India’s 58th Tiger Reserve.

5. 54th National Safety Week being observed with theme ‘Safety & Well-being Crucial for Viksit Bharat’

The 54th National Safety Week is being observed across the country. The week is celebrated between the 4th to 10th of March annually in the country, to raise awareness about safety precautions across various sectors. 

6. India has 3rd-largest operating metro system, set to expand to 29 cities: Union Minister Hardeep Singh Puri

India has the third-largest operating metro system in the world, after China and the United States. Replying to a supplementary question in the Rajya Sabha, Petroleum and Natural Gas Minister Hardeep Singh Puri stated that more than one thousand kilometres of metro rail is currently operational in 23 cities across the country. 

7. India imposes anti-dumping duty up to $986/tonne on water treatment chemical from China, Japan

India has imposed an anti-dumping duty of up to 986 US dollars per tonne for five years on a chemical, used for water treatment, imported from China and Japan to protect the domestic industry from cheap inbound shipments

8. Former central banker Mark Carney to become Canada’s next PM

Former central banker Mark Carney will become Canada’s next Prime Minister after the governing Liberal Party elected him as its leader.

9. Madhya Pradesh to get its 9th Tiger Reserve today

Madhya Pradesh Chief Minister Mohan Yadav will inaugurate the state’s ninth tiger reserve – Madhav National Park – by releasing a tiger and tigress today. The Chief Minister will also inaugurate a 13-kilometre-long stone safety wall inside the park. 

10. Khelo India Winter Games symbolize ‘Ek Bharat Shreshtha Bharat’: J&K LG

Jammu & Kashmir Lt Governor Manoj Sinha has said that the Khelo India Winter Games symbolizes the spirit of “Ek Bharat Shreshtha Bharat”.