President’s Speech on 75th Independence Day

The President highlighted that 75 years ago, in the Central Hall of the ‘Samvidhan Sadan,’ the Constituent Assembly adopted the Constitution, which serves as the foundation of India’s democratic republic and safeguards collective and individual dignity.

“Samvidhan Sadan Parliament House”

• India’s Old Parliament House Renamed as ‘Samvidhan Sadan‘
• Prime Minister Narendra Modi proposes name change post-new Parliament building inauguration.
• Purpose: Preserve democratic heritage for future generations.
• Originally named Council House.
• First Constituent Assembly meeting on 9 December 1946.
• Complemented in 1927.
• Designed by Edwin Lutyens and Herbert Baker.

Important Days in November 2024

Indian Government Approves ₹1,435-crore Project for PAN 2.0

• The government has approved a ₹1,435-crore project to revamp the system of issuing permanent account numbers.
• The PAN 2.0 project aims to create a “common business identifier” for all digital systems of government agencies.
• The project was approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi.
• PAN is a unique 10-digit alphanumeric number issued by the Income Tax Department to Indian taxpayers.
• The project aims for ease of access, speedy service delivery, improved quality, single source of truth and data consistency, eco-friendly processes, cost optimization, and security and infrastructure optimization.
• The project will also make personal data protection mandatory for all entities using PAN data.

PAN 2.0 Project

• An e-Governance project re-engineering taxpayer registration services.
• Aims to enhance digital experience for taxpayers.
• Upgrades the current PAN/TAN 1.0 eco-system.
• Benefits include faster processing of applications and updates, a unified database, free card upgrades for current PAN holders, and digital procedures for paperless procedures.
• Existing PAN cards remain valid, and new PAN cards with upgraded features, like QR codes, will be issued at no additional cost.
• Application process details are yet to be specified by the Income Tax department.

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Cyclone Forecast for the East Equatorial Indian Ocean and Southeast Bay of Bengal

• Cyclone circulation over the East Equatorial Indian Ocean and Southeast Bay of Bengal has evolved into a low-pressure area.
• The India Meteorological Department (IMD) predicts the system will intensify into a depression by November 25.
• The Regional Meteorological Centre (RMC) in Chennai reports that the depression over southwest Bay of Bengal has intensified into a deep depression.
• If the depression becomes a cyclone, it will be named ‘Fengal’.
• Cyclones in the North Indian Ocean are named by member countries of the World Meteorological Organization (WMO) and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) panel.
• The panel includes 13 nations, each contributing a list of potential names.
• The name ‘Fengal’ was proposed by Saudi Arabia and represents a blend of linguistic tradition and cultural identity.

Supreme Court Upholds ‘Socialist, secular’ Inclusion in Indian Constitution Preamble

• The Supreme Court upheld the inclusion of ‘socialist’ and’secular’ in the Preamble of the Constitution.
• The ‘secular’ denotes a Republic that respects all religions, while ‘socialist’ represents a Republic dedicated to eliminating all forms of exploitation.
• The order was based on petitions filed in 2020 challenging the validity of the inclusion of’secular’ and’ secular’ in the Preamble through the 42nd Constitution Amendment in 1976.
• The court found the petitioners’ arguments manifest and found the motives of the petitions “questionable.”
• The court held that the Preamble was an inalienable part of the Constitution and the Parliament had an unquestionable power to amend the Constitution under Article 368.
• The court confirmed the retrospective amendment to the Preamble, stating the date of adoption would not curtail the power under Article 368.
• The court emphasized that the Constitution is a “living document” and open to changes according to the needs of the time.
• The court clarified that ‘socialism’ in the Indian context means the state’s commitment to function as a welfare state and ensuring equality of opportunity.

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Satellite Pollution Concerns

• Over 10,000 active satellites currently orbit the planet, expected to rise to over 100,000 by 2030s.
• Disintegration of satellites leaves pollutants in the upper atmosphere.
• Increased number of satellites is causing pollution.
• NOAA atmospheric scientist Daniel Murphy reports 10% of stratospheric aerosol particles contain metals from satellite burn-up and rocket stages during reentry.

Impact of Satellite Pollution on Earth’s Atmosphere

• Burnt-up satellite pollution could alter the atmosphere’s chemistry, potentially causing chaos.
• Scientists are concerned about the pollution’s impact on Earth’s stratosphere’s ozone layer, which absorbs up to 99% of Sun’s ultraviolet rays.
• Burnt-up spacecraft pollutants, like aluminum oxide, are already harming the ozone layer.
• This new threat is a major departure from the Montreal Protocol of 1987, which banned ozone-destroying chemicals like chlorofluorocarbons.

National Mission on Natural Farming Announced in India

• Government announces a national mission to promote natural farming among 10 million farmers.
• Budget outlay: ₹2,481 crore.
• Aim: Create a robust system for sustainable farming.
• GoI’s share: ₹1,584 crore.
• States’ share: ₹897 crore till 15th Finance Commission (2025-26).
• Scheme includes a certification system and common branding for farmers.
• Real-time monitoring of NMNF implementation via an online portal.
• Focus: Traditional knowledge-based farming methods, diversified crop systems.

Natural Farming

• Natural farming is a chemical-free, livestock-based farming system that integrates crops, trees, and livestock.
• Introduced by Masanobu Fukuoka in 1975, it is a regenerative agriculture strategy.
• In India, it is promoted as Bhartiya Prakritik Krishi Paddhati Programme (BPKP) under Paramparagat Krishi Vikas Yojana (PKVY).

Significance of Natural Farming includes:

• Minimized Cost of Production: A cost-effective farming practice that can boost employment and rural development.
• Better Health: Natural farming eliminates health risks and hazards, offering higher nutrition density food.
• Employment Generation: Natural farming generates employment through value addition and local marketing.
• Environment Conservation: It ensures better soil biology, improved agrobiodiversity, and judicious water usage.
• Livestock Sustainability: The integration of livestock in the farming system helps restore the ecosystem.
• Resilience: The changes in soil structure and plant diversity support plant growth even under extreme weather conditions.

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) Funding Uncertainty

• MGNREGS, a crucial safety net for the rural poor, is unlikely to receive increased funding in the FY26 budget.
• Allocations are expected to remain at FY25 levels, reflecting the government’s confidence in a recovering rural economy.
• Funding adjustments could be considered mid-year if severe disruptions, such as significant rural distress, arise.
• The scheme’s funding spiked in FY24 due to economic challenges and higher demand for work.
• FY25 funding remains steady at ₹86,000 cr, unlikely to exceed this amount due to a fall in rural job demand.
• Data from the ministry of rural development shows a consistent decline in job demand under MGNREGS over the past year.

Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA) Overview

• Ministry: Ministry of Rural Development (India)
• Passed on 23 August 2005, implemented in February 2006 under Prime Minister Manmohan Singh’s UPA government.
• Aims to enhance livelihood security in rural areas by providing at least 100 days of assured wage employment in a financial year.
• Women are guaranteed one third of the jobs, with efforts to ensure at least 50%.
• Aims to create durable assets like roads, canals, ponds, and wells.
• First proposed in 1991 by Prime Minister P.V. Narasimha Rao, it was commenced in 625 districts and expanded to cover all districts from 1 April 2008.
• Despite criticism from the World Bank, it was praised as a “stellar example of rural development”.

India’s Economic Outlook: Cautiously Optimistic

• Domestic growth, global interest rate dynamics, and US administration’s policy decisions will determine trade and capital flows.
• Demand for FMCG sales in Q2 FY25 in both urban and rural areas has rebounded, with rural demand particularly strong.
• The Purchasing Managers’ Index for manufacturing and services indicates strong activity in secondary and tertiary sectors.
• The formal workforce is expanding, with notable increases in manufacturing jobs and a strong inflow of youth into organised sectors.
• A “bumper kharif harvest” and adequate reservoir levels are expected to lower food inflation.
• Retail inflation hit a 14-month high of 6.21% in October due to a 10.87% spike in food inflation.

Retail Inflation

• Retail inflation, also known as Consumer Price Index (CPI) inflation, tracks changes in retail prices of goods and services.
• CPI is calculated for a fixed basket of goods and services, which may or may not be altered by the government.
• The CPI interprets factors such as cost of living, purchasing power of consumers, the expensiveness of goods and services, and the value of the Indian rupee.
• CPI is calculated as a percentage, comparing the general price level in the markets in a particular time period from a past benchmark year.
• The National Statistical Office (NSO) and Ministry of Statistics and Programme Implementation (MoSPI) compile and release CPI numbers monthly.
• CPI is used as a macroeconomic indicator of inflation, a tool for inflation targeting, price stability inspection, and a deflator in national accounts.

Wholesale Price Index (WPI)

• Represents wholesale stage price of goods.
• Used as inflation measure in India.
• Influences fiscal and monetary policy changes.

Finance Minister Nirmala Sitharaman’s PMJDY Success

• PMJDY has increased banking penetration and financial inclusion.
• 53.92 crore Jan Dhan accounts opened till October 2024.
• Operational PMJDY accounts increased from 60.38% (March 2017) to 79.13% (October 2024).
• 55.7% of Jan Dhan accounts opened by women, 67% in rural and semi-urban areas.

PMJDY Financial Inclusion Program

• Aims to provide affordable access to basic savings, deposit accounts, remittance, credit, insurance, and pension.
• Opens basic savings bank deposit (BSBD) accounts at any bank branch or Business Correspondent outlet.
• No minimum balance requirement for PMJDY accounts.
• Provides free Rupay Debit card to account holders.
• Offers accident insurance cover of Rs.1 lakh (enhanced to Rs.2 lakh for new accounts opened since 2018).
• Offers overdraft facility up to Rs. 10,000 to eligible account holders.
• Eligible for DBT, PMJJBY, PMSBY, APY, and MUDRA schemes.
• No mandatory free cheque book facility.

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Finance Minister Pankaj Chaudhary’s FY24 Report

• Commercial banks recovered Rs 1,23,299 crore of non-performing assets.
• 30,855 cases referred to debt recovery tribunals.
• Continued consolidation of Regional Rural Banks (RRBs) for scale efficiency and cost-rationalisation.
• Aims for ‘One State One RRB’.

Non-Performing Assets (NPAs)

• NPAs are loans or advances that a bank stops earning income from due to non-payment of interest or principal.
• NPAs can affect a bank’s profitability and stability.
• An account is considered NPA if the quarter’s interest due isn’t paid within 90 days.
• NPAs can reduce a bank’s liquidity, making it harder to provide more credit.
• Recovery actions include repossessing collateral, initiating legal proceedings, and other measures.
• Borrowers with NPAs may face challenges in securing additional financing and negatively impacting their credit history.
• The NPA ratio is calculated by dividing total non-performing assets by total loans.

“India’s New Small Savings Scheme for Women Draws 4.33 Million Depositors”

• Launched on April 1, 2018, with 4.33 million depositors.
• Maharashtra leads with 7,46,223 accounts.
• Other states include Tamil Nadu, Odisha, Karnataka, Uttar Pradesh, and West Bengal.
• One-time scheme with a deposit cap of Rs 2 lakh and 7.5% fixed interest rate.

Mahila Samman Savings Certificate (MSSC) Scheme

• Introduced in Budget 2023, available for two years up to March 2025.
• Risk-free scheme for women and girls of all age groups.
• Offers maximum deposit facility of up to Rs 2 lakh for a two-year term.
• Encourages more women to adopt formal financial saving instruments.
• Eligibility: Individual women or minor accounts can be opened by the guardian.
• Deposit amount: Minimum of Rs. 1000 and any sum in multiples of one hundred rupees.
• Fixed interest rate of 7.5%, compounded quarterly.
• Maturity period: 2 years from account opening.
• Provision for multiple account openings, with a minimum gap of three months.
• Total deposit should not exceed Rs 2 lakh.

“Majority of ₹2,000 Notes Return from Circulation”

• Over 98% of ₹2,000 notes have returned since withdrawal announcement in May 2023.
• High value notes worth ₹3,55,858 crore returned to RBI as of November 1.
• Notes remain legal tender and accepted by RBI offices for deposit into bank accounts.