2 Economy

Money, Banking, Finance & Insurance

T+0 Settlement Cycle

Why in News?
y SEBI has proposed a T+0 settlement cycle for clearing and settlement of funds and securities.

Key Points:
y Same-Day Settlement: T+0 allows for settlement on the same day (T+0).
y Optional Basis: T+0 and instant settlement will be optional, in addition to the existing T+1 cycle.
y Historical Changes: SEBI shortened settlement from T+5 to T+3 in 2002, then to T+2 in 2003.
y Scope: Initially available for the top 500 listed equities based on market capitalization.
y Benefits for Clients: Faster payouts of funds and securities.
y Market Impact: Enhances flexibility and efficiency in the securities market.

Pros Cons

Faster access to funds and assets Operational and technological challenges

Optional, offering flexibility Potential for increased market volatility
Pressure on participants’ decision-making,
Progression towards market efficiency
challenges to foreign investors
Enhanced market flexibility Liquidity management challenges
Immediate payout benefits Adjustment period for market adaptation

28 Economy
RBI Guidelines on Inoperative Accounts and Unclaimed Deposits

Why in News?
y The RBI has recently released guidelines for Inoperative Accounts and Unclaimed Deposits
which would be effective from 1st April 2024.
Approximately Rs 1-1.30 lakh crore in inoperative accounts and Rs 42,270 crore unclaimed
deposits are there in India, as per the RBI.

Key Points of Guidelines:

y Banks to annually review accounts with no transactions for over a year.
y Banks to notify account holders via letters, emails, or SMS about potential inactivity.
y Accounts classified as inoperative based on customer-induced transactions only.
y Accounts for government scheme beneficiaries and students with zero balance exempted from
inoperative classification.
y Requires submission of KYC documents; no charges for activation.
y No penal charges for non-maintenance of minimum balance in inoperative accounts; interest
on savings accounts is to be credited regularly.
y Depositor Education and Awareness Fund (DEA Fund): Unclaimed deposits for over ten years
are to be transferred to the DEA Fund maintained by RBI.

Levy 20-30% health tax on food high in sugar, salt fat

Why in News?
y A UNICEF-funded project has recommended imposing a health tax of 20-30% on foods high in
sugar, ( salt, and fat (HFSS), including sugar-sweetened beverages (SSBs) like colas and juices.

Key Points:
y The study recommends targeting bulk consumers like confectionery manufacturers, not regular
household sugar purchases.
y Price Elasticity: A study suggests a 10% price increase could reduce sugar demand by 2% for
consumers, and 13-18% for bulk buyers.

Economy 29
 Price elasticity measures how much the quantity demanded of a good response to a change in
its price.

GST Impact:
y The current sugar tax at 18% GST; the proposed additional tax could raise it to 38-48%.

Demand Reduction Estimates:

y SSBs: A 10-30% health tax could lead to a 7-30% demand decline.
y HFSS products: A 10-30% health tax could result in a 5-24% demand decrease.

Benefits:
y Revenue Increase: Additional taxes could boost government tax revenues by 12-200%.
y Health Benefits: Aims to combat obesity, tooth decay, type 2 diabetes, cardiovascular diseases,
and certain cancers.
Global Context: Over 70 countries have implemented similar health taxes, with Mexico seeing
decreased SSB consumption and reduced BMI in younger groups post-taxation.

Balance of Payment & International Trade

China’s 2024 Economic Policy

Why in news?
y The 2023 Chinese Central Economic Work Conference (CEWC), was recently concluded.

Key Points:
y Economic Direction: The CEWC emphasized a stability-oriented pathway for the Chinese
economy in 2024.
y Shift in Growth Strategy: The focus is moving away from export-led growth towards domestic
demand-led growth.
y High-Quality Production: To expand the production process, with a particular emphasis on
achieving high-quality standards.
y Technological Self-Reliance: To achieve self-reliance in critical technologies like quantum
technology
y Collaboration with Trade Partners: While striving for self-reliance, China also recognizes the
importance of collaborating with trade partners when necessary.
y Financial Discipline: Emphasis on the importance of maintaining financial discipline.

KABIL Investment in Argentina

Agreement:
y An exploration and development agreement is expected to be signed with CAMYEN, a state-
owned miner in Argentina’s Catamarca province.

Economy 30
 y Underground brine deposits, mineral ores, clays, seawater, and
Sources of Lithium
geothermal well brines or water.

Lithium Triangle y Argentina, Chile, and Bolivia make up the world’s “lithium triangle”.

y Chile and Argentina account for 30-35% of the world’s lithium

supplies.
y Chile, with 11% of the world’s lithium reserves, supplies 26% of the
Lithium Supplies
global requirements.
y Argentina, with nearly one-fifth of the global resources, supplies
around 6%.
y Also known as “white gold,” It is an alkaline mineral crucial for
modern energy storage solutions.
Importance of Lithium
y It is used in various sectors, including electric vehicles (EVs),
lithium-ion batteries, and mobile phones.
y Currently, India imports all of its lithium requirements, primarily
India’s Lithium
from China.
Requirements and
y Lithium is expected to play a vital role in India’s transition to green
Imports
energy and reduce the country’s carbon footprint.
y Exploration is ongoing for additional lithium blocks in states like
Auction and
Rajasthan and Karnataka.
Exploration of Lithium
y In J&K, the inferred lithium reserves are approximately 5.9 million
Blocks
tonnes, while exploration is yet to be carried out in Chhattisgarh.

Why in news?
y India’s KABIL (Khanij Bidesh India Ltd) will invest ₹211 crores ($25.712 million) over five years for
the exploration of five lithium blocks in the Fiambala area of Argentina.

Global trade to suffer as challenges arise in Red Sea Route and Panama Canal

Source: The Indian Express

Economy 31
Red Sea Attacks:
y Drone attacks by Yemen-based Houthi rebels on ships traveling to India through the Red Sea
are endangering the crucial Bab-el-Mandeb Strait near the Suez Canal, potentially disrupting
global trade and increasing shipping costs.
y In response, a US-led maritime security coalition is implementing measures to secure this vital
trade route.

Panama Canal Drought:

y The Panama Canal’s driest season in decades is forcing ships to take longer routes, leading to
increased transit times and costs.

Impact on India:
y Oil Flows: While global oil flows through the Red Sea have declined, India’s Russian oil imports
remain unaffected, thanks to geopolitical alignments. However, Brent crude prices have risen,
hovering around $80 per barrel.
y Freight Rates: Indian exporters face increased freight rates for shipments to Europe and Africa,
with potential surcharges due to the security risks in the Red Sea. This could impact India’s
exports to the European Union, one of its largest markets.

Global Implications:
y Trade Disruptions: Over 80% of global goods trade is carried by sea, making these disruptions
a significant concern for the world economy. The blockages at these crucial points could lead
to the rerouting of ships, higher freight rates, and increased prices for goods.
y Economic Impact: The disruptions come at a time of slowing demand in the West and a property
crisis in China, potentially exacerbating global trade challenges.

Why in News?
y Recent disruptions in two critical maritime routes – the Red Sea and the Panama Canal – pose
significant threats to global trade.

Infrastructure

Atal Setu Nhava Sheva Sea Link: India’s longest sea bridge

Economy 32
Key Points:
y Atal Setu Nhava Sheva Sea Link is a roughly 22 km long bridge that was conceptualized six
decades ago. It connects Sewri in Mumbai to Chirle in Raigad district.
y It significantly reduces travel time between Sewri and Chirle to under 20 minutes.

Benefits:
y Enhanced economic integration of Navi Mumbai with Mumbai and improved connectivity to the
Navi Mumbai International Airport and hinterland.
y Better access to Jawaharlal Nehru Port.

Why in News?
y The Mumbai Trans Harbour Link (MTHL), officially named Atal Setu Nhava Sheva Sea Link, was
inaugurated by Prime Minister Narendra Modi.

PM Suryodaya Yojana

Why in News?
y The Prime Minister has recently inaugurated the ‘Pradhan Mantri Suryodaya Yojana’.

Key Points:
y Background: This scheme builds upon the foundation laid by the Rooftop Solar Programme
initiated in 2014, which targeted a cumulative installed capacity of 40 GW by 2022, later
extended to 2026.
y Objective: The primary goal is to facilitate the installation of solar power systems on residential
rooftops, benefiting around one crore households. This move is designed to lower electricity
costs for the economically weaker sections and middle class while advancing India’s ambition
for energy self-sufficiency.

Economy 33
Eligibility Criteria:
y Must be a permanent resident of India.
y Annual income should not exceed Rs 1 or 1.5 lakh.
y Submission of all required documents accurately.
y Non-engagement in government service.

Interim Budget:
y It proposed that 10 million households will be enabled to get up to 300 units of free electricity
every month with an outlay of Rs 10,000 crore.

Key Benefits:
y Targeted support for economically disadvantaged groups, including those below the poverty
line, to alleviate electricity costs and lighting issues.
y A sustainable and long-term solution for a dependable electricity source for citizens.
y It will help households save up to ₹ 15000- 18,000 annually.
y Enable more EV charging, create entrepreneurship opportunities, and provide more employment
opportunities in manufacturing, installation, and maintenance.

Sectors of the Economy, GDP, Inflation

Revised Pharma Manufacturing Rule

Why in news?
y The Ministry of Health and Family Welfare notified revised rules under Schedule M of the Drugs
and Cosmetics Rules, 1945.

Economy 34
 Schedule M of the Drugs and Cosmetics Rules, 1945 prescribes requirements to the manufacturing
plants of pharmaceutical companies for maintenance, manufacturing, control and safety testing,
storage and transport of material, written procedures and records, traceability, etc.

Background:
y Last year, India felt intense global scrutiny after the World Health Organization (WHO) issued an
alert about cough syrups being contaminated with toxic substances.
y This has led to the revision of the manufacturing of pharmaceutical standards for the companies.
y The Department of Pharmaceuticals comes under the Ministry of Chemicals and Fertilizers.

Key Revised Rules:

y Manufacturers are required to assume responsibility for the quality of pharmaceutical products.
y Companies must ensure that the products are suitable for use by consumers.
y Companies should conduct tests on the ingredients before marketing a finished product.

Benefits:
y It will ensure that the pharmaceutical sector produces safe, effective, and high-quality drugs.
y To ensure compliance with international quality standards.
y Benefits for Patients and Industry: By adhering to these standards, both patients and the
pharmaceutical industry can benefit.
y Addressing Backlash: The revision is a response to the criticism and negative attention India
has received due to reports of sub-standard medicine exports.

Human Resource Development, Health and Education

Ayushman Bharat Pradhan Mantri — Jan Arogya Yojana (AB PM-JAY)

About Ayushman Bharat-PMJAY:

Launch Year: 2018

Ministry: Ministry of Health and Family Welfare.

Beneficiary
As identified by the latest Socio-Economic Caste Census (SECC) data.
Identification:

y For each state and UT with its own legislature, the ratio is
60:40(Centre: State).
Funding of the scheme: y 90:10 in Northeast states and Jammu and Kashmir, Himachal, and
Uttarakhand.
y 100% Central funding for UTs without legislature.
y The National Health Authority (NHA)
Nodal Agency:
y At the state level, the State Health Agency (SHA)

Economy 35
Why in news?
y The Ministry of Health & Family Welfare has released statistics regarding Ayushman Bharat
Pradhan Mantri — Jan Arogya Yojana (AB PM-JAY).

Key Highlights of Statistics:

y Women account for approximately 49% of the total Ayushman cards created and approximately
48% of total authorized hospital admissions.
y 12 crore families are covered under the scheme.
y Some states and union territories, at their own expense, have expanded the beneficiary base.
The existing identification by the center is done through the Socio-Economic Caste Census
(SECC) data

HPV Immunization Programme in India

Why in News?
y India is preparing to launch an immunization campaign against Human Papillomavirus (HPV) to
reduce cervical cancer cases.

About the programme:

y The HPV Immunization Programme targets free vaccination for girls aged 9 to 14 years in three
phases over three years.
y After the testing phase, the HPV vaccine will be included in the routine immunization program
for 9-year-old girls.
y In the recent budget, the government has announced that it will encourage vaccination for girls
in the age group 9-14.
y The blueprint of how the government will support HPV vaccination hasn’t been finalized yet.
y Eligibility for HPV Vaccine: The vaccine is most effective when administered to adolescent girls
before they become sexually active.
y Vaccination for Older Women: Women up to 45 years old can receive the vaccine, though it’s
less effective for those already exposed to HPV.
y Over 95% of cervical cancer cases are linked to HPV.
y The vaccine’s effectiveness in preventing cervical cancer is about 97%.

Economy 36
About Human Papillomavirus (HPV):

Transmission y Primarily through sexual contact.

y Can cause genital warts.

Common Effects
y May lead to cervical, throat, and other cancers.
y HPV vaccine (recommended for preteens, can be given to adults).
Prevention y Regular cervical cancer screenings.
y Use of protection during sexual activity.

Mulya Pravah 2.0- An effort to prioritize values and ethics in higher education

y Released by the University Grants Commission (UGC) in India.

Mulya Pravah 2.0
y It is a modified version of the 2019 Mulya Pravah guideline.
y Inculcate respect for fundamental duties and constitutional values.
Objectives y Develop a culture of integrity and inclusiveness in higher education
institutions.
y Librarians and Registrars are seen indulging in corruption while
purchasing books and materials.
y There is political campaigning and groupism in both students and
Examples:
teachers.
y Gender inequality, fair wages, mistreatment, and sexual harassment
issue plague the higher education in India.

Why in news?
y UGC seeks to implement Mulya Pravah 2.0 in higher education.

NAAC- Accreditation system overhaul

Why is News?
The National Assessment and Accreditation Council (NAAC) recently announced significant reforms
in the accreditation system for higher education institutes.

Key reforms:

Before After

y Academic institutions will now be classified as “Accredited”

or “Not Accredited,” doing away with the previous rating
y Grading system of academic scheme.
institutions was in place. y Introduces a graded system based on maturity that allows
y Grading was from D (Not certified schools to advance from “level one” to “level five.”
Accredited) to A++. y Incentivizes improvement, with the ultimate goal of
achieving “Institution of Global Excellence for Multi-
Disciplinary Research and Education” status.

Economy 37
Significance:
y These changes are proposed in line with the global best practices set by leading countries in
the field of education.
y The new accreditation system is aimed at encouraging institutions to raise their bar by improving
the standard of imparting education.
National Assessment and Accreditation Council (NAAC):
y NAAC is an autonomous body established by the University Grants Commission (UGC).
y It was established in 1994 on the basis of recommendations made under the National
Education Policy (1986).
y It is registered under the Karnataka Societies Registration Act of 1960, and Karnataka Societies
Registration Rules of 1961.

Annual Status of Education Report (ASER), 2022 Report Released

Annual Status of Education Report (ASER):

ASER is an annual survey that aims to provide district-level information

About:
on children’s enrolment and basic learning.

Year of
2005
Establishment:

Published by: Pratham, a non-profit organization, (biennial publication).

Nature: It is a household-based survey rather than a school-based survey.

This enables all children to be included; those who have never been to
Coverage: school or have dropped out, as well as those who are in government
schools, private schools, religious schools, or anywhere else.

Economy 38
Key Findings of ASER 2022:
y Increased enrollment rates: The enrollment rate for the 6 to 14 age group has risen from 97.2%
in 2018 to 98.4% in 2022, indicating a positive trend in school participation.
y Rise in Government School Enrolment: There has been a notable increase in enrolment in
government schools, from 65.6% in 2018 to 72.9% in 2022.
y Decline in Reading and Arithmetic Skills: There has been a worrying decline in the ability of
Class 3 children to read at the Class 2 level, dropping from 27.3% in 2018 to 20.5% in 2022.

Why in News?
y Recently, the 2022 Report of Annual Status of Education Report was released.

Vaibhav Fellows- NRI Scholars ki Ghar Wapsi

About:
y The goal of the VAIBHAV Fellowship is to
enhance the higher education and scientific
research environment in India.
y With the fellowship, NRI scholars would
have the chance to work with an Indian
academic or research institution for a
minimum of one month and a maximum of
two months per year.
y The government is providing up to Rs 37
lakh to the scholars for the full three-year
duration of the fellowship.
y The Department of Science and Technology
(DST) is implementing the Vaishvik Bharatiya
Vaigyanik (VAIBHAV) Fellowship Program.

Why is News?
y The government of India has launched the Vaishvik Bhartiya Vaigyanik(VAIBHAV) fellowship
program.

Probable MCQs

Q. Consider the following pairs:

Swachh Survekshan Awards 2023 category: Winner
1. Cleanest city – Indore (Madhya Pradesh)
2. Cleanest Cantonment Board – Mhow (Madhya Pradesh)
3. Best Safaimitra Surakshit Sheher – Surat (Gujarat)
4. Cleanest Ganga Town – Haridwar (Uttarakhand)
How many pairs given above are correctly matched?
(a) Only one pair
(b) Only two pairs

Economy 39
 (c) Only three pairs
(d) All four pairs
Answer: (b)

Q. The Annual Status of Education Report (ASER 2023) is released by:

(a) NGO Pratham Foundation
(b) NITI Aayog
(c) University Grants Commission
(d) All India Council for Technical Education
Answer: (a)

Q. Consider the following statements:

1. The distribution between the Union and the States of the net proceeds of taxes.
2. Evaluation of centrally sponsored schemes.
3. Evolve principles based on which funds are allocated among states.
4. To develop five-year plans.
How many of the above are the roles of the finance commission in India?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Answer: (b)

Q. With reference to the Directorate General of Civil Aviation, consider the following statements:
1. It is the regulatory body in the field of Civil Aviation primarily dealing with safety issues.
2. It is responsible for the regulation of air transport services to/from/within India.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (c)

Economy 40
 2 Economy

Money, Banking, Finance & Insurance

Indian Stock Market- Fourth Largest

Why in news?
y Based on market capitalization, India has emerged as the fourth-largest stock market globally.

Key Points:
y The total value of shares on Indian exchanges was $4.33 trillion as compared to Hong Kong’s
$4.29 trillion.
y The United States, China, and Japan are currently the top three stock markets.
y Reasons for this surge: Robust GDP growth, political stability, foreign portfolio investment,
India emerging as an alternative to China for investment.
y Issues with Hong Kong: Geopolitical issues, COVID-19 constraints, regulatory restrictions, and a
crisis in the real estate sector.

36 Economy
UPI launched in Sri Lanka, Mauritius
Why in News?
y Recently, the Prime Minister of India along with the President of Sri Lanka, and the Prime
Minister of Mauritius, jointly inaugurated the launch of Unified Payment Interface (UPI) services
in Sri Lanka and Mauritius, and also RuPay card services in Mauritius.

About:
y This move aims to facilitate seamless digital payments among citizens of the three countries,
fostering stronger economic ties.
y These projects have been developed and executed by NPCI International Payments Ltd (NIPL),
along with partner banks/non-banks from Mauritius and Sri Lanka, under the guidance and
support of the Reserve Bank of India.
List of countries that officially support UPI payment:
y Sri Lanka.
y Mauritius.
y France.
y UAE.
y Singapore.
y Bhutan.
y Nepal.

Municipal Bonds of Ahmedabad

Why in news?
y The Ahmedabad Municipal Corporation (AMC), issued the first municipal green bonds in Gujarat.
y It was worth Rs 200 crore and oversubscribed by 6.8 times.
y The AMC is the second municipal corporation after Indore in the country to issue municipal
green bonds.
y AMC issued the bond after it identified “green projects” under the AMRUT 2.0 scheme.
y Municipal bonds are debt securities issued to raise capital, where in return, investors get the
principal amount with interest.

RBI Action Against Paytm Payments Bank

Payment Banks:
Definition: Payment banks operate on a smaller scale compared to traditional banks, focusing on
basic banking services without the risk of credit.
Services Offered:
y Accept demand deposits (savings and current accounts) up to Rs 100,000 per customer.
y Issue ATM/debit cards, but not credit cards.
Restrictions:
y Cannot issue loans or credit cards.
y Cannot accept NRI deposits.

Possible Causes for RBI Action:

y Concerns over KYC compliance, IT issues, and data access to China-based entities. Previous

Economy 37
 scrutiny since 2018 for regulatory compliance issues.
y Paytm’s Chinese investments, particularly from Antfin (Alibaba affiliate), are under intense
regulatory scrutiny.

RBI Action against Paytm Payment Bank:

y Service Restrictions on fund transfers, UPI facility, and termination of nodal accounts of One97
Communications (Paytm Payment Bank)

Why in News?
y Paytm Payments Bank barred from key services like accepting new deposits, offering prepaid
instruments, wallets, FASTags, etc., effective after February 29, 2024.

Automated Search Portal by the Central Economic Intelligence Bureau

About the Portal:
y Launched by the Central Economic Intelligence Bureau (CEIB) in collaboration with the State
Bank of India.
y Main Objective: To scrutinize the backgrounds of potential large borrowers, specifically to:
⚪ Verify the existence of any non-performing assets (NPAs) linked to their names.
y Mandate for Public Sector Banks: Required to obtain a report from the CEIB for loan applications
exceeding ₹50 crore for new customers, aiming to:
Central Economic Intelligence Bureau (CEIB):
y Role: Acts as an intelligence agency dedicated to collecting information and overseeing the
economic and financial sectors for any signs of economic offenses and warfare.
y Establishment Year: 1985
y Position: Serves as the principal agency for economic intelligence within India.
y Operational Framework: Operates under the auspices of the Department of Revenue, Ministry
of Finance.

C-CARES Portal- For pensioners and CMPFO consumers

Why in news?
y The Ministry of Coal (MoC) has launched the C-CARES web portal of the Coal Mines Provident
Fund Organization (CMPFO).

Key Points:
y It was developed by the Centre for Development of Advanced Computing (C-DAC).
y It will transform record-keeping for pensioners and CMPFO consumers and will help coal
businesses and CMPF subscribers to settle claims online and handle grievances.
y CMPFO is an autonomous organization under the MoC for administering Provident Funds and
Pension schemes for social security in the coal sector.

Bima Sugam Portal

What is Bima Sugam:
y Bima Sugam is an online platform offering a selection of insurance schemes from various
companies, catering to life, health, and general insurance needs.

Economy 38
Key Features:
y The platform will digitize and simplify the insurance process, including policy purchase,
renewals, claim settlements, agent services, and policy portability.

Role and Utility:

y Bima Sugam serves as a one-stop solution for managing insurance coverage, offering end-to-
end services for insurance requirements.
y It allows for real-time access to validated data for insurance companies and facilitates the sale
of policies and services by intermediaries and agents, aiming to reduce paperwork.

Stakeholders:
y Life and general insurance companies each hold a 47.5% stake, while brokers and agent bodies
own 2.5% each in the Bima Sugam Platform.

Why in News?
y The Insurance Development and Regulatory Authority of India (IRDAI) has said that Bima Sugam
will offer free services to consumers through a not-for-profit structure.

Forex Card with zero transaction charge

Key Points:
y A Forex Card is like a prepaid card which supports a number of popular currencies such as USD,
GBP, CAD, EUR, AUD, SGD and many others.
y It can be used to shop in international locations where people are travelling.
y There is usually a 1% transaction charge on each transaction.

Why in news?
y Startups like Fi, Jupiter, and Scapia, in collaboration with Federal Bank, offer credit and debit
cards with zero foreign currency transaction fees to attract young Indian tourists.

RIL becomes first Indian company to hit Rs 20 lac cr market cap

Why in news?
y Reliance Industries Limited (RIL) recently became the first Indian company to surpass Rs 20
lakh crore in market capitalisation.

About Market Capitalisation:

y Market Capitalization, or Market Cap, is a term used to represent the market value of a company
based on its current share price and the total number of its outstanding shares.

RBI asked VISA, Master Card to halt card-based payment

Why in news?
y Recently, the Reserve Bank of India (RBI) has directed Visa and Mastercard to stop card-based
business-to-business payments routed through fintech firms.

Economy 39
About:
y This only affects business payments processed through specific third-party services and does
not impact other card transactions.
y A set of fintech firms in India currently operate in a category called Business Payment Service
Providers (BPSPs) that enable businesses to use credit cards for payments to suppliers who do
not accept cards directly.

Composite license for insurers

y What is a Composite License? A unified license for a range of insurance products.
y Current Provisions: Companies need to take separate license for health, life and general
insurance.
y Recommendation:
⚪ The Standing Committee on Finance of the Lok Sabha suggests allowing insurance companies
to obtain composite licensing.
⚪ The committee has proposed a reduction in GST rates for health insurance and term policies,
aiming to lower it from the current 18% level.

y Benefits of Composite Licensing:

⚪ Streamline operations and reduce compliance burdens for insurers
⚪ Customers can benefit from increased choices and value.

Why in news?
y Parliament panel proposes composite license for insurers, cut in GST rates.

EPFO hikes interest rates

Why in news?
y Employees’ Provident Fund Organisation (EPFO) hikes interest rate for 2023-24.

Key Points:
y EPFO hikes interest rate for 2023-24 to 3-year high of 8.25%.
y For 2022-23, the interest rate was fixed at 8.15%.

Budget, Taxation & GST

Budget 2024
Introduction:
y There is no mention of the word “Budget” in the Indian Constitution.
y According to Article 112 of the Indian Constitution, the Union Budget of a year is referred to as
the Annual Financial Statement (AFS).
y Some of the key budget documents presented to the Parliament comprise of the following:
⚪ Annual Financial Statement
⚪ Demands for Grants
⚪ Appropriation Bill
⚪ Finance Bill

Economy 40
 ⚪ Statements mandated under the Fiscal Please scan this QR to access the free
Responsibility and Budget Management comprehensive lecture by Mrunal Sir on
Act, 2003: Interim Budget
 Macro-Economic Framework Statement
 Fiscal Policy Strategy Statement
 Medium Term Fiscal Policy Statement
⚪ Expenditure Budget
⚪ Receipts Budget
y Some of the FRBM Act documents were not
presented this year as it was an Interim Budget.
y Furthermore, for policy objectives the
government also presents more documents
such as Gender Budget, Economic Survey, SC-
ST Sub-plan etc.
The Economic Survey is presented by the
Chief Economic Advisor of the Government
of India one day before the presentation of
the budget. ( For example, if the Budget is to
be presented on 1st February, the Economic
Survey would be presented on 31st January.

Interim Budget:
y An Interim Budget is presented by a government
in its last year in office ahead of general elections.
y The Interim budget, by convention, does not
include major announcements, or populist
schemes as it can affect elections. However, it
is not necessarily followed every time in spirit.
For example: PM-KISAN Yojana of giving Rs 6000
to farmers was presented in the 2019 Interim
Budget.
y There is no compulsion for the government to
present an interim budget.
y The new government presents a full-fledged budget after taking office after the elections.
y The Constitution does not forbid the presentation of more than one budget in a year.

Interim Budget 2024:

We can understand the budget under these two heads:
y Revenue Budget
y Capital Budget

Revenue Budget:
y Revenue Expenditure: Approx 36 Lakh Crore (Include Interest Payments, Salaries, Grants and
Subsidies)
y Revenue Receipts: Approx 30 Lakh Crore ( Include both tax and non-tax receipts)
y Revenue Deficit ( Receipts - Expenditure) : 6 Lakh Crore

Economy 41
Capital Budget:
⚪ Capital Receipts: Approx 16.8 Lakh crore ( includes both debt and non-debt receipts)
⚪ Capital Expenditure: Approx 11 Lakh crore

Key Schemes/Data from the Budget this year ( Classified on the basis of Mrunal Sir’s Six Pillars of
Economy):

Pillars Schemes/ Related Data

y Jan Dhan Yojana: Government saved about 2.7 Lakh Crore through
Direct Benefit Transfers by plugging leakages
Pillar#1: Money,
y PM-SVANidhi: Credit assistance was provided to 78 lakh street
Banking, Finance &
vendors
Insurance
y PM-MUDRA Yojna: Disbursement of 30 crore Mudra Yojana loans to
women entrepreneurs
y Fifty-year interest-free loan scheme for capital expenditure to states
Pillar#2: Budget, would be continued: A total outlay of Rs 1.3 lakh crore proposed
Taxation & GST y Grants would be given as per the recommendation of the Finance
Commission
y FDI: India received a total of $596 Billion between the period of 2014-
Pillar#3: Balance
2023
of Payment &
y Govt. gave slogan that FDI would mean First Develop India; Budget
International Trade
also talks about signing more Free Trade Agreements
y PM-KISAN: financial assistance was provided to 11.8 crore farmers
y PM FASAL BIMA Yojana: Crop insurance extended to 4 crore farmers
y e-NAM Mandi: Integration of 1,361 mandis under eNAM
y PM-KISAN Sampada Yojna: benefitted 38 lakh farmers and generated
10 lakh employment
y Promotion of Nano-DAP: Nano-DAP (Di-ammonium Phosphate) is a
nanotechnology-based agri-input developed by the Indian Farmers
Fertilizer Cooperative Limited (IFFCO).
y Atmanirbhar Oilseeds Abhiyaan: It would cover high yield varieties
Pillar#4: Sectors
research, procurement, value addition, and crop insurance.
of Economy, GDP,
y PM Matsya Sampada Yojna:
Inflation
⚪ New targets of 5 Ton per hectare production from earlier 3 ton
⚪ Would target to double our exports to 11 lakh crores
⚪ Five integrated aquaparks would be set up
y Research and Development: Interest free loans for 50 years with
budget of total 1 Lakh Crore
y Focus on Deep tech and AI for self reliance and defense
y Would focus on new factors of production i.e. Digital public
infrastructure ex: ONDC, UPI, TReDS etc.
y Focus on Circular Economy: Biomanufacturing and bio-foundry
y Aspirational Districts Program: Focus on development of backward
Pillar#5: districts
Infrastructure y PM AWAS Yojna (Grameen): two crore more houses will be taken up
in the next five years

Economy 42
 y Focus on PM-GATI Shakti, UDAAN scheme and development of
e-vehicles e-Bus
y India-Middle East-Europe Economic Corridor (IMEC) Project: To
create a comprehensive transportation network, comprising rail, road,
and sea routes, connecting India, the Middle East, and Europe
y NaMo Bharat: RRTS Regional Rapid Transit System
y Promotion of coal gasification and liquefaction
y Focus on development of Offshore Wind Energy through viability gap
funding
y Rooftop Solarization: 1 crore households will be enabled to obtain
up to 300 units of free electricity per month, can also sell electricity
through net-metering
y Railways Infrastructure: Development of Vande Bharat coaches,
Creation of three economic railway corridor for
y Energy, mineral and cement
y Port connectivity
y High traffic density regions
y Tourism Infrastructure: Focus on spiritual tourism, interest free loans
to states for developing iconic cities, Rating / Ranking system for
competitiveness
y PM Garib Kalyan Yojna: free ration scheme to continue for next 5
years to cover 80 cr people
y Development of PM-SHRI Model schools under NEP-2020
y Focus on Skill India Mission
y PM-JANMAN scheme for PVTGs
y Upliftment of 25 cr people out of poverty as per the Multidimensional
poverty Index
y Cervical vaccination for girls aged 9-14 yrs
y Mission Indradhanush: creation of U- WIN platform for vaccination
Pillar#6: Human
y Ayushman Bharat PMJAY ₹5 lakh Health insurance extended to all
Resource
ASHA workers, Anganwadi Workers and Helpers.
Development,
y Deen Dayal Antyodaya Yojana -National Rural Livelihoods Mission:
Health and
Aim to target to 3 crore women through SHGs by ‘Lakhpati Didis’
Education
scheme (Under this scheme, women will be provided skill training so
that they can earn over Rs 1 lakh per year.)
y Women Empowerment:
⚪ 28% rise in girls in higher education in 10 years
⚪ 43% girls in STEM courses
⚪ Triple Talaq was made illegal
⚪ Provision of 33% reservation for women in Lok Sabha and State
Vidhan Sabha
⚪ 70% PM Awas Yojana (Rural) homes owned by women.

Economy 43
Key Data from the Budget:

Economy 44
Economy 45
Receipts:

Economy 46
Tax provisions for Nuns and Priests
Why in news?
y SC has decided to examine whether nuns earning salaries must pay income tax.

Key Points:
y Nuns and priests enter a state of civil death.
y According to Christian missionaries, the salaries of nuns and priests are not used for their
personal expenses but go to their respective congregations.
y These congregations submit taxes.
y A person who undergoes civil death cannot earn an income.
y According to Kerala HC: A person who enters a state of civil death cannot be expected to carry
out regular activities and enjoy fundamental rights.

Sectors of the Economy, GDP, Inflation

Household Consumption Expenditure Survey 2022-23

Conducted by: National Statistical Office (NSO).

Frequency: Every five years.
Objective: To estimate household Monthly Per Capita Consumption Expenditure (MPCE) across
rural and urban sectors, states/UTs, and socio-economic groups

Why in News?
y Recently, the Household Consumption Expenditure Survey 2022-23 was released after a total
gap of 11 years.
y Before this, the results of the most recent survey, conducted in 2017-18 following the
demonetization of high-value currency notes and the introduction of the Goods and Services
Tax (GST), were never released after the government cited “data quality” issues.

Economy 47
Survey Highlights:
y MPCE Increase: Urban households’ MPCE
rose by 33.5% since 2011-12 to ₹3,510; Rural
India’s MPCE saw a 40.42% increase to
₹2,008.
y Food Expenditure: Rural households’ food
spending dropped from 52.9% to 46.4%;
Urban households’ food spending decreased
from 42.6% to 39.2%.
⚪ Impact: This may lead to changes in
the weightage of food prices in retail
inflation calculations.
y State-wise MPCE: Highest in Sikkim
(Rural: ₹7,731; Urban: ₹12,105) and lowest in
Chhattisgarh (Rural: ₹2,466; Urban: ₹4,483).
y Engel Curve Observation: The spending
patterns reflect the Engel Curve hypothesis,
showing a move towards “superior” food
items (like dairy, meats, and produce) as
incomes rise, away from “inferior” staples
(such as cereals and sugar).

Blue Economy 2.0

About Blue Economy:
y It is the sustainable use of ocean resources for economic growth, improved livelihoods, and
jobs while preserving the health of the ocean ecosystem.
y India’s Blue Economy 2.0 focuses areas: Coastal restoration, aquaculture development, and
climate-resilient activities within the broader framework of sustainable ocean management.

Why in news?
y The “blue economy 2.0” emphasized in the Interim Budget focuses on sustainable development
around seas.

Blue Economy 1.0 vs 2.0:

Key Aspect Blue Economy 1.0 Blue Economy 2.0

Focus Exploitation of resources Sustainable use

Major activities Traditional industries Innovative industries
Achieving balance of economic growth,
Emphasis Economic growth environment sustenance and societal
aspirations.

Key Points:
y The budget recommends supporting climate-resilient initiatives such as restoration and
adaptation measures for the blue economy 2.0.

Economy 48
y It assures improvement of the Pradhan Mantri Matsya Sampada Yojana (PMMSY).
y To establish five integrated aqua parks in an effort to double exports, boost aquaculture
production, and create jobs.

Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY)

y Sub-scheme under the broader Pradhan Mantri Matsya Sampada

About Yojana.
y Aims to bolster the fisheries sector.
y Establishment of a National Fisheries Digital Platform.
y Formalize the fisheries sector.
Objectives
y Provide support to fisheries micro and small enterprises through
access to institutional credit.
y The scheme will be implemented over a span of four years from
Implementation
2023-24 to 2026-27, covering all states and union territories.
y A budget of Rs. 6,000 crore has been earmarked for the scheme.
⚪ With 50% of the financing sourced from public funds, including
Budget Allocation and contributions from the World Bank and the Agence Française
Source de Développement (AFD).
⚪ The remaining 50% is expected to be leveraged from the
private sector.
Implementing Ministry y Ministry of Fisheries, Animal Husbandry & Dairying

Why in News?
y Recently, the Union Cabinet approved a new scheme ‘Pradhan Mantri Matsya Kisan Samridhi
Sah-Yojana (PM-MKSSY)’.

Golden Jubilee of Amul Celebrated

History of Amul:
y 1946: Founded as the Kaira District Co-operative Milk Producers’ Union Limited in Anand,
Gujarat, by Tribhuvandas Patel, with support from Morarji Desai and Sardar Vallabhbhai Patel.
y 1950: The brand Amul was created for dairy products produced by the cooperative.
y Central to India’s White Revolution, aiming for milk self-sufficiency through increased production.
Amul is an acronym (Anand Milk Union Limited) of the Indian Multinational cooperative society
named Gujarat Milk Marketing Federation based in Anand, Gujarat.

Operation Flood:
y Launched in 1970 by the National Dairy Development Board and chaired by Verghese Kurien,
transforming India into the world’s largest milk producer through the “Anand Pattern” and
connecting rural producers with urban consumers via dairy cooperatives.
Anand Pattern: Amul pioneered the Anand Pattern which is promoting economic organization and
empowerment of small producers through collective action.

Economy 49
Why in News?
y The Prime Minister recently participated in the Golden Jubilee celebration of the Gujarat
Cooperative Milk Marketing Federation (GCMMF) and applauded the success of Amul.

Digital India FutureLABS launched by Ministry of Electronics & IT

Key Points:
y The Digital India FutureLABS would be coordinated by C-DAC.
y The initiative seeks to improve the value chain, enhance domestic R&D for the next-generation
Electronics System Design in the country.
y The Ministry of Electronics & IT has partnered with companies such as Qualcomm, IBM, Mahindra,
etc across various industry verticals.

Why in News?
y Recently, the Ministry of Electronics & IT launched the Digital India FutureLABS initiative.

Balance of Payment & International Trade

100% FDI in the space sector

Changes in FDI norms:
The satellite sector has been split into three categories, each with specific restrictions on foreign
investment.
Production of Parts for y For satellite systems and component manufacture, up to 100%
Satellites FDI will be allowed under the Automatic route.
y Up to 74% FDI under the automatic route for satellite
Complete Production and
manufacturing and satellite data products.
management of satellites
y For investments beyond 74%, government approval is required.
y For the construction of spaceports and launch vehicles, up to 49%
Launching vehicles and
of FDI under the automatic route will be permitted. Government
their components
clearance is required for investments larger than 49%.

Significance of revised norms:

y More investment will be attracted to the Indian space sector.
y More job creation, availability of modern technology, and self-sufficiency in the sector.
y It will link Indian firms with global supply chains, allowing them to set up manufacturing plants
locally.

Why in news?
The Union Cabinet recently approved 100% Foreign Direct Investment (FDI) in the space sector.

Economy 50
Global soft landing in sight- says IMF

About soft landing:

y In economics, It is a cyclical slowdown in economic growth that avoids recession.
y The central bank seeks to raise interest rates just enough to stop an economy from experiencing
high inflation.

Why in news?
y IMF says global soft landing in sight.

Infrastructure

Induction Charging on
Golden Quadrilateral

Golden Quadrilateral:
Network of highways
connecting four top
metropolitan cities i.e.
Delhi, Mumbai, Chennai,
and Kolkata.

Key Points of induction

Charging:
y This initiative is part of a
larger plan called Vision
2030, which aims to
boost e-mobility and the
use of electric buses.
y Efforts are being made
to identify and convert
existing highways into
e-highways. This will
involve setting up enough
charging stations for
electric buses to travel
between cities.

Economy 51
Why in news?
y The Union Ministry of Road Transport and Highways is considering the electrification of the
Golden Quadrilateral.

Sagar Aankalan- Guidelines for Indian Port Performance Index

About Sagar Aankalan:
y It is the guideline for the National Benchmarking of Indian Ports
What is it?
Performance.
y Ensuring mapping and benchmarking of Indian Port’s logistics
Objective
performance and efficiency.
y It will help in the development and modernization of seaports,
Significance
cruise sector, shipbuilding, and related knowledge sharing.

Why in news?
y The Union Ministry of Ports, Shipping & Waterways, has launched ‘Sagar Aankalan’ guidelines.

Sudarshan Setu in Gujarat

About:
y It is India’s longest cable-stayed bridge, in the Gulf of Kutch.
y It is also known as Signature Bridge.
y It will link mainland Gujarat with Bet Dwarka island off the Okha coast in Devbhumi Dwarka.
y Its total length is 4,772m, including a 900-m-long cable-stayed section.

Why in news?
y Recently Prime Minister Narendra Modi inaugurated the Sudarshan Setu in Dwarka, Gujarat.

Economy 52
India’s largest Grain Storage Plan
Key Points:
y A pilot project is being undertaken in 11 Primary Agricultural Credit Societies (PACS) across 11
states under India’s largest grain storage plan.
y The plan aims to set up a storage infrastructure of 700 lakh metric tons over the next five years
at a cost of Rs 1.25 lakh crore to help farmers store their produce.

Why in News:
y Prime Minister Modi has recently launched the pilot project for India’s largest grain storage
plan.
y Leasing the Strategic crude oil reserve capacity

What are Strategic Reserves?

y They are large stockpiles of crude oil that are maintained by governments or private entities to
ensure energy security and mitigate the impact of supply disruptions.
y India has established underground storage facilities for crude oil in Visakhapatnam (Andhra
Pradesh), Mangalore, and Padur (Karnataka).

Impact of Strategic Oil Storage Leasing:

y This decision aims to avoid government expenditure on filling up the available capacity in the
caverns managed by India Strategic Petroleum Reserves (ISPRL).

Why in news?
y India has decided to lease approximately 1 million tonnes of vacant strategic crude oil storage
capacity to both Indian and international companies.

Novel Initiative Technological Intervention for Safety of Human Lives (NITISH) Device- For
timely alert to farmers

About NITISH:
y It will provide timely alerts to farmers and the public, specifically targeting lightning, floods,
heatwaves, and cold waves.
y It will sound an alert to its users half an hour before lightning or flooding. Alert will be in three
ways:

Economy 53
 ⚪ Voice messages.
⚪ The Color will change from green to red.
⚪ The device will keep warming till its user switches it off.

Why in news?
y The Bihar State Disaster Management Authority has launched the Novel Initiative Technological
Intervention for Safety of Human Lives (NITISH) device.

Flood Management and Border Areas Programme (FMBAP)

About FMBAP:
y Formed by the merger of “The Flood Management Programme (FMP)” and
Origin
“River Management Activities and Works related to Border Areas (RMBA)”.
y It is a centrally sponsored scheme.
Flood Management Programme (FMP):
y 60% (Centre) and 40% (State)
Funding
y For Special Category States- 90% (Centre) and 10% (State).
River Management and Border Areas (RMBA) component-
y 100% central assistance.
Nodal Ministry y Ministry of Jal Shakti
y To support the State Governments in their efforts to protect crucial areas
Aim
from flooding.
y Flood Management Programme (FMP)– Work related to flood control, anti-
erosion, drainage development and anti-sea erosion.
Components
y River Management and Border Areas (RMBA) - Flood control and anti-
erosion works on common border rivers with neighbouring countries.

Why in news?
y The Cabinet approves the Flood Management and Border Areas Programme (FMBAP) for the
period 2021-26.

Press Sewa Portal of I & B Ministry for Online Registration

Why in News?
y The Ministry of Information and Broadcasting launched the Press Sewa Portal recently.

Key Points:
y The Press & Registration of Books Act, 1867 has been replaced by the Press and Registration of
Periodicals Act, 2023.
y Under the new Act, Press Sewa Portal would be launched which would replace manual processes,
providing publishers with a user-friendly online platform for registration.

Economy 54
Human Resource Development, Health and Education

All India Survey of Higher Education (AISHE) 2021–22

y About: Started in 2011 to provide a comprehensive view of higher education in India.

y Released By: Ministry of Education, Government of India.
y Categories Covered: Focuses on Universities, Colleges, and Stand-alone institutions.
y 2021-22 Survey: Marked as the 11th AISHE Survey and the first conducted via Web Data
Capture Format (DCF).

Key Highlights from AISHE 2021-22 Report

y Enrollment Increase: Total student enrollment reached 4.33 crore, showing an increase from
the previous year.
y Female Enrollment Growth: Female student enrollment rose to 2.07 crores in 2021-22, a 32%
increase since 2014-15.
y Gender Enrolment Ratio (GER): It is around 28.4% for the age group 18-23 years.
Gross Enrolment Ratio (GER): Measures the number of students in higher education in a given
population.

Why in News?
y Recently, the All India Survey of Higher Education (AISHE) 2021–22 was released in January
2024.

UGC allocation- Halved in interim budget

Before After

y The University Grants Commission’s (UGC)

y Central Universities Grants: An increase of
allocation was cut by over 50%, with only
over Rs 4,000 crore, with Rs 15,928 crore
Rs 2,500 crore allocated for the financial
allocated for the financial year 2024-25.
year 2024-25.
y 2023-24 budget estimate: Rs 5,360 crore
in 2023-24.

Other aspects:
y The Education Ministry’s overall budget allocation for this year increased by 6.8%.
y The allocation for ‘World Class Institutions’ under Institutions of Eminence (IoE) has increased
to Rs 1,800 crore from Rs 1,500 crore in 2023-24.
y The allocation for research and innovation has been raised to Rs 355 crore from Rs 210.61 crore.

Why in news?
y UGC allocation halved central varsities outlay by Rs 4,000 cr.

Economy 55
CBSE Proposes Open Book Exams Pilot Study
Why in News?
y The Central Board of Secondary Education (CBSE) is exploring open book exams inspired by the
National Curriculum Framework (NCF).
Pilot Study Details:
y Implementation: The pilot is scheduled for November-December in selected schools, covering
subjects like English, Mathematics, and Science for Classes 9 and 10, and English, Mathematics,
and Biology for Classes 11 and 12.

About Open Book Examination (OBE):

y Definition: An exam format allowing students to
consult their books and notes during the test.

Types:
y Restricted OBE: Only materials approved by the
authority can be used.
y Free OBE: Any materials chosen by students are
permitted.

Historical Context in India:

y Past Initiatives: CBSE introduced Open Text
Based Assessment (OTBA) in 2014, and AICTE
allowed open-book exams in engineering colleges in 2019.
y During the pandemic, several universities conducted an open book test to assess students.
Pros and Cons of open book exam:

Pros Cons

y Encourages critical thinking as students are y Ability of students to read books, and hard
required to understand and apply concepts work will degrade.
rather than memorize information. y Risk of dependency: Students may become
y Enhances collaboration: Students often reliant on having resources available,
work together to find answers, fostering potentially hindering their ability to retain
teamwork and communication skills. information long-term.
y Reduces stress: Having access to resources y Time management challenges: Searching
can alleviate test anxiety and help students for answers in open book assessments can
feel more confident during assessments. be time-consuming, leading to potential
y Promotes independent learning: It time constraints during exams.
encourages students to take ownership of y Potential for cheating: With access to
their education and seek out information resources, there is a higher risk of academic
on their own. dishonesty if students misuse the privilege.
y Reflects real-world scenarios: In many y Inequality among students: Not all
professional settings, individuals have students may have equal access to
access to resources when problem-solving, resources, potentially creating disparities
so open book learning can better prepare in performance based on the availability of
students for future challenges. study materials.

Economy 56
IIT Madras Zanzibar

Key points:
y IIT Madras Zanzibar has been launched as the first overseas IIT campus.
y IIT Madras Zanzibar represents an extension of India’s technological prowess and educational
excellence beyond its borders.
y It will improve India’s soft power and improve people to people contact.

ASHA (Accredited Social Health Activists) to get health cover

About ASHA:
y Launched in 2005-06: As part of the National Rural Health Mission, initially in rural areas.
y Later extended to urban areas with the introduction of the National Urban Health Mission in
2013.
y ASHA workers must be a woman resident of the village, preferably in the age group of 25 to 45
years.
y They serve as a service provider, and facilitator of health care, and raise public understanding
of health issues.
y They counsel women on: birth preparedness, the importance of safe delivery, breastfeeding,
feeding and immunization.

Economy 57
About Ayushman Bharat:
Launch Year 2018.
Ministry Ministry of Health and Family Welfare (MoHFW).
Objective To achieve Universal Health Coverage.
A centrally sponsored scheme (schemes that are funded by both the
Fund
Central and State Governments.)
Implementing
National Health Authority.
Agency
y Rs.5 lakh per family per annum for secondary and tertiary care across
Coverage public and private hospitals.
y Approximately 50 crore beneficiaries (over 10 crore poor families)

Why in news?
y The Central government has extended the benefits of the Ayushman Bharat scheme to
Accredited Social Health Activist (ASHA) workers.

Global Initiative on Digital Health (GIDH) by World Health Organisation

Purpose of GIDH:
y The initiative aims to facilitate knowledge sharing and exchange of digital health products
among countries.

Components of GIDH:
y Country Needs Tracker: Helps identify the specific needs of each country in terms of digital
health resources.
y Country Resource Portal: Provides a map of available resources in each country.
y Transformation Toolbox: Shares quality-assured digital tools for healthcare.
y Knowledge Exchange: A platform for sharing insights and best practices in digital health.

Why in news?
y WHO launches digital health platform agreed upon in India’s G20 presidency.

Rashtriya Udyamita Vikas Pariyojana

About the scheme:

Ministry y Ministry of Skill Development and Entrepreneurship.

Beneficiaries y It is designed for PM SVANidhi scheme beneficiaries.

y Providing individuals with entrepreneurship training, creating job
Objective providers.
y Reskilling and upskilling of employees to boost their efficiency.
y There will be three methods of delivery for the training: online,
Mode of training
offline, and hybrid.

Economy 58
 y The Indian government has partnered with Flipkart to provide
Collaborators
training to street vendors and small shopkeepers.

About PM SVANidhi Scheme:

y 2020: Launched by the Ministry of Housing and Urban Affairs.
y A central sector scheme ( Implemented by a central agency and 100% funded by the center
on subjects within the union list.).
y Micro-credit scheme for urban street vendors that have been adversely affected due to the
Covid-19 lockdown.
y Provide collateral-free working capital loans up to ₹50,000.
y On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited
to the bank accounts of beneficiaries.

Why in news?
y Rashtriya Udyamita Vikas Pariyojana was launched in Sambalpur, Odisha.

SBI Report on Poverty levels

Why in News?
y The State Bank of India’s economic research team has published a report on the Household
Consumption Expenditure Survey (HCES) for 2022-23.

Key Points:
y The overall poverty rate in India is estimated to be between 4% to 5%, with potential adjustments
after the upcoming Census and rural-urban population share data.
y There’s an expectation of a further decline in urban poverty.
y SBI’s report discusses the impact of reduced food expenditure on retail inflation, suggesting a
decrease in the weightage of food in the Consumer Price Index from 47.8% in 2011-12 to 42.8%
in 2022-23.

2011-12 2022-23

7.2 %
Rural Poverty 25.7%.

Urban Poverty 13.7% 4.6%

Multidimensional Poverty
Why in news?
y 25 cr Indians have been raised from poverty since 2013-14, says Govt. MPI uses indicators
covering three main areas: health, education, and standard of living.

Key Points:

Economy 59
 y Multidimensional poverty in India declined from 29.17% to 11.28%.
y About 24.82 crore people escaping poverty during this period.
From 2013-14 to 2022-23
y At the state level: Uttar Pradesh topped the list, followed by Bihar
and Madhya Pradesh.

Traditional Poverty Measurement:

y Poverty is traditionally calculated based on income or expenditure levels.
y Poverty lines are minimum expenditure levels defining poverty.

Multidimensional Poverty Index (MPI):

y MPI uses 10 indicators covering health, education, and standard of living.
y Health dimension includes nutrition and child & adolescent mortality.
y Education dimension includes years of schooling and school attendance.
y Standard of living dimension includes household-specific indicators like housing, assets, fuel
type, sanitation, water, and electricity.

Indian MPI Specifics:

y Indian MPI includes maternal health and bank accounts as additional indicators.
y These additions align with India’s national priorities according to NITI Aayog.

SWATI (Science For Women: A Technology & Innovation) Portal

About SWATI:
y To build an extensive database that includes representations
Objective of Indian women and girls working in STEMM sectors (science,
technology, engineering, math, and medicine).
Developed by y National Institute of Plant Genome Research (NIPGR), New Delhi.
y It will address issues of gender disparity, encourage more young
Significance women and girls to pursue scientific education and enable valuable
research on gender equality, diversity.

National Institute of Plant Genome Research (NIPGR):

y It is an autonomous institution aided by the Department of Biotechnology, Government of
India.

Why in news?
y A panel representing India’s science academies introduced the new SWATI program on the
International Day for Girls and Women in Science.

Probable MCQs
Q. Consider the following statements regarding the Payments Banks in India:
1. Credit lending is allowed for the Payments Banks.
2. They can accept demand deposits.
3. They offer remittance service and internet banking.
How many of the above statements are correct?

Economy 60
 (a) Only one
(b) Only two
(c) All three
(d) None
Answer: (b)

Q. Consider the following sectors:

1. Airports
2. space sector
3. Trading in Transferable Development Rights
4. Biotechnology
5. Manufacturing of cigars
The foreign direct investment (FDI) is prohibited in how many of the above mentioned sectors
of the Indian economy?
(a) Only two
(b) Only three
(c) Only four
(d) All five
Answer: (a)

Q. With reference to the Global Multidimensional Poverty Index (MPI), consider the following
statements:
1. It is released by the United Nations Sustainable Development Solutions Network.
2. As per the released MPI of 2023, India has more than 20 crore people who are poor.
3. Standard of living is one of the dimensions under the Multidimensional Poverty Index.
How many of the above statements are correct?
(a) One only
(b) Two only
(c) All three
(d) None
Answer: (b)

Q. Consider the following infrastructure projects:

1. Energy, mineral and cement corridors
2. Port connectivity corridors
3. High traffic density corridors
As per Interim Budget 2024-2025, how many of the above-mentioned corridors are developed
under ‘Railway economic corridors programmes’ identified under the PM Gati Shakti?
(a) Only one
(b) Only two
(c) All three
(d) None
Answer: (c)

Economy 61
2 Economy

Money, Banking, Finance & Insurance

SEBI asks MFs to stop investing in overseas ETFs

Exchange Traded Fund (ETF): These are

registered investment companies that offer
investors a way to pool their money in a fund
that invests in stocks, bonds, or other assets.
Key points:
y Mutual funds can invest up to $7 billion in
overseas stocks/ mutual funds.
y Out of this, mutual funds can invest up to $
1 billion in overseas exchange-traded funds.
y The mutual fund industry has already
reached 95 percent of the $1 billion limit.
y This is the reason why SEBI has asked mutual funds to temporarily stop accepting money in
overseas ETFs.

Why in news?
y SEBI has asked asset management companies (AMCs) not to accept funds in mutual fund
plans that invest in overseas exchange-traded funds (ETFs).

Paytm Becomes Third-Party Application Provider (TPAP)

About TPAP: It is an entity that provides the UPI compliant apps to the end-user customers to
facilitate UPI-based payment transactions.

Economy 27
Paytm as TPAP on UPI:
y National Payments Corporation of India (NPCI) allowed Paytm to function as a third-party
application provider (TPAP) on Unified Payments Interface (UPI).
y Four banks - SBI, Axis Bank, HDFC Bank, and YES Bank will act as payment service providers
(PSPs) for Paytm.
y TPAPs are service providers that engage in UPI transactions through a Payment Service Provider
bank.

Approval and Implications:

y Paytm users can continue using UPI for transactions on the app.

RBI Directive:
y RBI stated that no new users can be added by a third party application provider (TPAP) until
existing users are migrated to new handles successfully.

Why in news?
y Paytm gets NPCI nod to become a third party application provider.

India’s Small Stocks Bubble Concerns

Key points:
y Market capitalisation: It refers to the total number of outstanding shares of a company in the
market multiplied by the current price of each share. It is a measure of the estimated valuation
of a company.

Small Cap Small-cap companies have a market capitalisation of less than ₹5,000 crores.

Mid Cap Mid-cap companies have market caps above ₹5,000 crore but less than ₹20,000
crore.
Large Cap These companies are well-established with a significant market share, like
market caps of ₹20,000 crore or more.

SME Stocks Manipulation:

y Signs of IPO price manipulation and trading malpractices in SME stocks have been observed.
y Massive inflow into small and mid-cap funds too has raised concerns.

Why in News?
y Owing to the recent surge in small and mid cap stocks, SEBI had urged caution and proactive
measures to safeguard investor interests.

Economy 28
Front Running Case

About Front Running:

y It is done when a broker or an investor joins a trade because they have knowledge of a
confidential deal that will impact the asset’s price.
y Also called forward-trading or tailgating.
y It also occurs when a broker buys or sells shares from their personal account before their firms
buy or sell them.

Insider Trading Front Running

y It involves Trading stocks or other securities y Executing trades based on knowledge of
based on material, non-public information upcoming orders from clients before those
(insider information) orders are made public or executed.
y It is done by Corporate insiders (e.g., y It is done by Brokers, financial advisors, or
executives, employees) or any individuals anyone who has advance knowledge of trade
with access to non-public, material orders that can influence market prices.
information.

Why in news?
y LIC fired an employee who was involved in a front-running trading case.

Interoperable Payment System

Why in news?
y Reserve Bank of India (RBI) plans to launch an interoperable payment system for Internet
banking in 2024.

Economy 29
About Interoperable Payment System:
y It allows different payment methods and systems to work together seamlessly.
y It made it easy to transfer money between different banks or payment providers.
y It ensures that one can use the preferred payment method regardless of the merchant or
service you are using.
y The interoperable system will be implemented by NPCI Bharat BillPay Ltd (NBBL), a subsidiary
of the National Payments Corporation of India (NPCI).

National Urban Cooperative Finance and Development Corporation Limited (NUCFDC)

About:
y Established as a Non-Banking Finance Company (NBFC) to serve as the umbrella organization
for the urban cooperative banking sector.
y It will operate as a Self-Regulatory Organisation for the sector.
y It will be subject to RBI-imposed regulation.

Objectives and Functions:

y to enable UCBs to expand their service offerings efficiently and cost-effectively.
y It will provide fund management and consultancy services to UCBs.
y It will also facilitate various facilities for small banks, promote dialogue between banks and
regulators, and work on enhancing communication channels within the sector.

Why in News?
y Union Home and Cooperation Minister Amit Shah recently inaugurated an umbrella organization
for urban cooperative banks (UCB).

Bandhan Bank authorize to collect revenue of West Bengal

Why in News:
y Bandhan Bank has recently been authorized by the West Bengal government to collect tax and
non-tax receipts through the Government Receipt Portal System (GRIPS).
GRIPS is an online platform for various tax and non-tax payments to the West Bengal government.

y This mandate allows people to pay taxes such as property tax, motor vehicle tax, and professional
tax through the portal.

RBI’s New Directions on Credit Cards

Key Point:
Before After
y Previously, the card networks like Visa, y Credit Card issuers must now allow
Mastercard, etc. associated with your credit customers to choose from multiple card
card were selected by the issuer based on their networks, like Visa, MasterCard, or others
specific agreements with these networks. when issuing a credit card
y Customers had no say in it. y This would be applicable to both new and
existing cards.

Economy 30
Why in News?
y The Reserve Bank of India (RBI) has recently made a significant change for credit card issuers.

PM- SURAJ: Portal for Marginalized Sections by Ministry of Social Justice & Empowerment
About PM-SURAJ Portal:
y The portal aims to provide credit support to entrepreneurs from disadvantaged sections of
society.
y Around ₹720 crore worth of credit was disbursed to one lakh beneficiaries from Scheduled
Castes, Denotified, Nomadic and Semi-Nomadic Tribes, Other Backward Classes, and Safai
Karamcharis.
y The portal will serve as a one-stop point for people from disadvantaged sections to apply for
and track the progress of various loans and credit schemes available to them.

Why in news?
y PM Modi launched Pradhan Mantri Samajik Utthan evam Rozgar Adharit Jankalyan (PM-SURAJ)
for Marginalized Sections.

Balance of Payment & International Trade

Women Exporters in the Digital Economy (WEIDE) Fund

Key points about WEIDE:
y Launched by the World Trade Organization (WTO) and the International Trade Centre (ITC).
y Total Fund Capacity: USD 50 million global fund.
y Objective: To assist women entrepreneurs in developing economies and least-developed
countries in adopting digital technologies.
y UAE becomes the first donor with $5 million assistance.

International Trade Centre (ITC):

y 1968: Established.
y Joint agency of the World Trade Organization (WTO) and the United Nations (UN).
y Objective:
⚪ To connect businesses to international markets and empower them to participate
effectively in global trade.
⚪ To provide trade-related technical assistance, market intelligence, and training to support
small and medium-sized enterprises (SMEs).

Why in news?
y The WEIDE fund was recently launched.

Thailand’s Concern over India’s Agriculture Subsidy

Why in News?
y Thailand, via its ambassador to WTO, accuses India of exporting rice at unfairly low prices due
to government subsidies, impacting global food prices.

Economy 31
Thailand’s Concerns:
y Trade Distortion: Views India’s Public Stockholding Programme (PSH) as highly subsidized,
distorting global food prices by overproduction and reduced prices.
y WTO Violation: India’s breach of WTO’s de minimis limit for rice subsidies (exceeding 10%)
violates WTO regulations and distorts fair trade principles.
y Desire for Liberalization: As part of Cairns Group, Thailand advocates for agricultural trade
liberalization, urging India to dismantle or reduce its Minimum Support Price (MSP) scheme.
The Cairns Group is an interest group of 19 agricultural exporting countries in WTO, composed of
Argentina, Australia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia,
New Zealand, Pakistan, Paraguay, Peru, the Philippines, South Africa, Thailand, Ukraine, Uruguay,
and Vietnam

India’s Concerns:
y Comparison with Developed Countries: Emphasizes the disparity in farmer subsidies between
India and developed countries like the US and EU, where subsidies can be significantly higher.
y Breach of De Minimis Limit: Acknowledges breaching the 10% de minimis limit, protected under
the “peace clause,” but questions the subsidy calculation method at WTO.
⚪ WTO’s Peace Clause: It is an interim measure agreed upon by WTO members in 2013, protecting
developing nations from dispute challenges on subsidy breaches until a permanent solution
is reached.
⚪ It allows developing countries to breach prescribed subsidy ceilings without facing dispute
settlement challenges.
y Need for Permanent Solution: Advocates, along with the G-33 group, for a permanent solution
on public stockholding to provide flexibility in farm support without breaching subsidy levels.

The G33 is a coalition of developing countries, established prior to the 2003 Cancun ministerial
conference that have coordinated during the Doha Round of World Trade Organization negotiations,
specifically in regard to agriculture.

India-European Free Trade Association (EFTA) Trade Agreement

Polity and Governance 32

 What is EFTA?
y 1960: EFTA was established as an intergovernmental organization, comprising Iceland,
Liechtenstein, Norway, and Switzerland.
y It is an alternative trade bloc for those European states that were unable or unwilling to join
the European Union (EU).

Why in News?
y Recently, the European Free Trade Association (EFTA) States and India signed a Trade and
Economic Partnership Agreement (TEPA).

Highlights of the Agreement:

y Investment and Employment: EFTA commits to promoting investments to increase foreign
direct investments by USD 100 billion in India in 15 years and generate 1 million direct jobs.
y Market Access: There would be substantial cuts in tariffs such as custom duties on 99.6% of
products being exported to Europe in these four countries from India.
⚪ Similarly there would be tariff reduction by India on 95.3% of the products that are exported
to India from EFTA countries.
y Service Sector: India got commitments in sub-sectors focusing on IT services, business
services, and more.
y Intellectual Property Rights: Commitments related to IPR are at the TRIPS (Trade Related
Aspects of Intellectual Property Right) level, addressing India’s interests in generic medicines
and concerns related to the evergreening of patents.
y Sustainable Development: TEPA emphasizes India’s commitment to sustainable development,
inclusive growth, social development, and environmental protection.
y Trade Facilitation: Aims to foster transparency, efficiency, simplification, harmonization, and
consistency in trade procedures.

Sectors of the Economy, GDP, Inflation

ADITI Scheme - to promote innovation in critical and strategic technologies

About the scheme:
y Acing Development of Innovative Technologies with iDEX (ADITI) is a scheme to promote
innovations in defence technologies.
y It comes under the iDEX (Innovations for Defence Excellence) framework of the Ministry of
Defence.
y Objective: It aims to develop about 30 deep-tech critical and strategic technologies (like
Robotics, Quantum Computing, AI and Machine Learning) during the period 2023-24 to 2025-26.

About iDEX:
y 2018: Launched by the Ministry of Defence.
y Objective: To become self-sufficient and promote technological advancement and innovation in
the defence and aerospace sectors.

Why in news?
y Defence Minister, Rajnath Singh launched the ADITI scheme during DefConnect 2024 in New
Delhi.

Economy 33
Pharma companies- New Marketing Code
Why in news?
y The Department of Pharmaceuticals issued the Uniform Code for Pharmaceutical Marketing
Practices (UCPMP), 2024.

Key Points/Guidelines for Pharmaceutical Companies:

y The word “safe” must not be used without qualification. Claims about a drug’s usefulness need
to be based on up-to-date evidence.
y Gifting by pharmaceutical companies or their agents is prohibited. Companies must not pay for
access to healthcare professionals.
y Conducting events in foreign locations is prohibited.
y Cash or monetary grants should not be paid to healthcare professionals or their family members.
y The promotion of a drug must align with its marketing approval.
y It must not be claimed that a medicine has no side effects, toxic hazards, or risk of addiction.

Consumer body warns celebrities and influencers against promoting betting, gambling
Why in news?
y The Central Consumer Protection Authority (CCPA) asked celebrities and social media influencers
to refrain from endorsing or promoting illegal betting and gambling activities.
Key Points:
y CCPA said that endorsements by celebrities give the impression that indulging in online gambling
and betting is acceptable.
y Betting and gambling are prohibited under the Public Gaming Act 1867 and are considered
illegal in most regions of the country.
y Stringent measures, as per the Consumer Protection Act, 2019, will be initiated against those
involved in, advertisers, publishers and social media platforms involved in the promotion of
betting.

Fantasy Sports teams such as Dream 11 etc. have been considered by Indian Courts as a Game
of skill and not game of chance. Hence, they are not considered as ‘gambling’.

Centre paves the way for Tesla’s entry with new EV scheme
y Background: Global EV manufacturers, like Tesla, Inc., had requested tariff concessions as a
condition to establish manufacturing plants in India.
y Import Duty: Under the new policy, completely built-up (CBU) cars can be imported at a 15%
import duty.
y Tesla’s Request: The new policy aligns with Tesla’s request by offering a 15% import duty for
CBU cars.

Completely Built-Up (CBU) Cars: This term is used to describe cars that are imported directly
from the country where the vehicle was made in complete and intact condition, so that they are
ready to be used.

Economy 34
Why in news?
y The union government released a new electric vehicle (EV) policy easing duty for a limited
number of EV imports for manufacturers setting up facilities in India.

E-Kisan Upaj Nidhi

About the scheme
Launched by y Ministry of Consumer Affairs, Food & Public Distribution.
Aim y to help farmers store their produce efficiently using technology.
y Will assist farmers in securing fair prices for their crops.
Features y It is a digital gateway by the Warehousing Development and Regulatory
Authority (WDRA) for farmers.
Reduced Security y Reduction from 3% to 1% to encourage more farmers, especially small
Deposit Charges farmers.
y Intended to boost farmers’ income by making warehouse usage more
accessible.
Benefits y Allows farmers to deposit produce at 7% interest for 6 months at WDRA
warehouses.
y Helps farmers sell their produce at or above Minimum Support Price
(MSP).
y Proposed free registration for cooperative sector warehouses.
Why in news?
y The E-Kisan Upaj Nidhi scheme was recently launched.

Infrastructure

India’s first underwater metro in Kolkata

Economy 35
About underwater metro:
y The project is India’s first-ever transportation project where trains will ply under a river -
Hooghly.
y It is a 4.8-km stretch between Howrah Maidan and Esplanade (the route connects key areas
such as the IT hub Salt Lake).
y The project has been executed with enhanced safety measures, including using features like
anti-collision and automatic train control mechanisms.

In the year 2023, the Kochi water metro in Kerala was inaugurated which is a first-of-its-
kind public boat service integrated with a metro rail network.

Why in news?
y PM Modi launched Kolkata Metro’s East-West corridor, India’s first underwater metro service.

The first coastal road of Mumbai- First Phase Inaugurated

Why in news?
y The First Coastal Road of Mumbai was recently inaugurated for public use.

Key facts about the road:

y Named Dharmaveer Sambhaji Maharaj Coastal Road after Chhatrapati Sambhaji Maharaj (son of
Chhatrapati Shivaji Maharaj).
y It will connect southern Mumbai with the Bandra Worli Sea Link.

Chhatrapati Sambhaji Maharaj (14 May 1657- March 11, 1689):

y He had his military campaigns against various neighbouring kingdoms like the Mughals and
the Portuguese in Goa.
y He was also a scholar and wrote Sanskrit book Budhbhushanam and Hindi books such as
Saatsatak, Nayikabhed, and Nakhshikha.

Temporary International Status to Jamnagar Airport

Jamnagar Airport:
y It serves as a domestic airport and an Indian Air Force
base in Gujarat.
y It is owned by the Indian Air Force (IAF), and the airport
accommodates both commercial and private flights.

y Jamnagar is also known as the “Oil City of India”.

y It is home to the world’s largest oil refinery complex.
y The World Health Organization (WHO) and the Indian
Govt established the WHO Global Centre for Traditional
Medicine in Jamnagar.
y Reliance Industries is also developing the world’s
largest zoo near Jamnagar.

Economy 36
Why in News?
y Jamnagar Airport has been granted international status by the Airport Authority of India for a
10-day period in anticipation of VIP movement due to a private event.
y Permission was sought from IAF as well.

Udhampur-Srinagar-Baramulla Rail Link (USBRL) Project

Why in News?
y ​​Prime Minister Narendra Modi recently
inaugurated the Banihal-Sangaldan section
of the railway line which aims to connect
Baramulla in North Kashmir to Udhampur
in Jammu.
y The USBRL Project aims to connect the
Kashmir Valley with the Indian Railways
network, promoting development in the
region.

Udhampur-Srinagar-Baramulla Rail Link

(USBRL) Project:
y National Project: Declared in 2002, it
symbolizes a significant infrastructure
initiative for national integration.
y Total Length: The railway line spans 272 km
from Udhampur to Baramulla.

Tunnels and Bridges:

y Tunnels: 38 in total, The longest, Tunnel T-49, extends 12.75 km, making it India’s longest
transportation tunnel.
y Bridges: Totaling 13 km in length. Key highlights include:
⚪ Chenab Bridge: The world’s highest railway bridge standing 359 m above the Chenab riverbed.
⚪ Anji Khad Bridge: Indian Railways’ first cable-stayed bridge, showcasing innovative
engineering within the project.

India’s largest Solar Battery Project

About Solar Energy Corporation of India Limited (SECI):
y 2011: Establishment Year.
y It is a Central Public Sector Undertaking (CPSU)under the administrative control of the Ministry
of New and Renewable Energy (MNRE).
y It is the only CPSU dedicated to the renewable energy sector.

Why in news?
y The Solar Energy Corporation of India Limited (SECI) has commissioned India’s largest Battery
Energy Storage System (BESS), at Rajnandgaon, Chhattisgarh.

Economy 37
Key points about Project:
y It has an installed capacity of 40 MW/120 MWh.
y The project utilizes previously unused land for the project.
y Funded by the World Bank and Clean Technology Fund.

PM Surya Ghar Muft Bijli Yojana- Central Sector Scheme

About the Scheme:

Nodal Ministry y Ministry of New and Renewable Energy.

Aim y To install rooftop solar power systems in one crore households
across India, that opt to install rooftop solar electricity units.
⚪ Rooftop Solar Panels are Photovoltaic panels installed on
building rooftops connected to the main power supply unit.
Free Electricity y The households will be able to get 300 units of electricity free every
month.
Subsidy y Capped at 3 kW capacity.
⚪ 60% of the installation cost up to 2 kW capacity.
⚪ 40 percent of additional system cost for systems between 2 to
3 kW capacity.

Economy 38
 Central Sector Schemes: Schemes that are fully funded by the central government.
Why in news?
y PM Modi launched the PM Surya Ghar Muft Bijli Yojana.

Human Resource Development, Health and Education

SWAYAM Plus Platform- By Ministry of Education

SWAYAM (Study Webs of Active Learning for Young Aspiring Minds):

y 2017: Launched by the Ministry of Education, to provide one integrated platform and portal
for online courses.
y Objective: ensuring every student’s access to the best quality higher education at an
affordable cost.

Why in news?
y The Education Minister launches the SWAYAM Plus platform.

About SWAYAM Plus:

Enhancing y Aims to improve the employability of college students
Employability
Industry-Academia y The platform will combine SWAYAM’s academic quality with industry
Partnership partners’ real-world expertise.
Programs Offered y Programs in various sectors such as manufacturing, energy, computer
science and engineering, IT or ITES, healthcare.
Platform Features y SWAYAM Plus offers multilingual content, an AI-enabled chatbot for
student assistance.

Holistic Progress Card (HPC) by PARAKH for Students

What is PARAKH?
y PARAKH stands for The Performance Assessment, Review, and Analysis of Knowledge for Holistic
Development.
y It is established within the education survey division of the NCERT.
y It is India’s first national assessment regulator which will work on setting norms, standards,
and guidelines for student assessment and evaluation for all recognized school boards in the
country.

Holistic Progress Card (HPC) Key Features:

y Objective: Shift from traditional exam-focused assessment to a learner-centered evaluation
approach, in line with the National Curriculum Framework for School Education (NCFSE)
guidelines.
y Stages Covered: Designed for foundational (Classes 1-2), preparatory (Classes 3-5), and middle
stages (Classes 6-8).
y Evaluation Parameters:
⚪ Evaluates not only academics but also self-awareness, relationships, problem-solving,

Economy 39
 emotional intelligence, and creativity.
⚪ Students reflect on their learning through statements like “I learned something new” after
activities.

Method of Evaluation:
y Self-Assessment: Students set academic and personal goals, including an “ambition card” for
listing yearly goals and improvement areas.
y Parent Involvement: Bridges school and home learning; parents give feedback on homework,
classroom engagement, and managing screen time.
y Peer Evaluation: Encourages peer evaluation (by fellow students) to assess participation and
engagement in classroom activities.

Why in News?
y The NCERT is aiming to reform the traditional report card which only focuses on exams.

Foundational Literacy and Numeracy Assessment Test (FLNAT)

y About: It assesses the literacy and numeracy skills of non-literate learners.
y Certification Recognition: Successful candidates receive certificates from the National Institute
of Open Schooling (NIOS)

Why in News?
y The Department of School Education and Literacy (DoSEL), Ministry of Education is set to
conduct the Foundational Literacy and Numeracy Assessment Test (FLNAT).

The Growing Income and Wealth Inequality in India

Why in News?
y A new paper from the World Inequality Lab has highlighted a significant increase in the income
and wealth shares of India’s top 1%, marking historical highs in 2022-23.

World Inequality Lab:

y Affiliation: Paris School of Economics.
y Objective: To foster research on global inequality dynamics.
y Network: Collaborates with over a hundred researchers worldwide, focusing on nearly seventy
countries.

Key Insights:
y Dubbed “The Billionaire Raj,” the paper suggests that India’s inequality now surpasses that of
the British Raj era.
y Income and Wealth Shares: In 2022-23, the top 1% of Indians held 22.6% of income and 40.1%
of wealth, the highest levels ever recorded.
y Global Comparison: India’s top 1% income share is now among the world’s highest, surpassing
South Africa, Brazil, and the US. However, India’s top 1% wealth share is lower than that of
South Africa and Brazil.

Economy 40
Probable MCQs
Q. The Women Exporters in the Digital Economy (WEIDE) Fund, recently in the news, is launched
by:
(a) WTO and the International Trade Centre
(b) WTO and World Economic Forum
(c) IMF and World Economic Forum
(d) IMF and the International Trade Centre
Answer: (a)

Q. With reference to the Exchange Traded Funds (ETFs), consider the following statements:
1. It is a basket of securities that trades on an exchange just like a stock does.
2. SEBI has limited the amount of money that can be invested in overseas ETFs.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither nor 2
Answer: (c)

Q. Which of the following statements is/ are correct in context of e-Kisan Upaj Nidhi?
1. It is an initiative of the Ministry of Agriculture.
2. It aims to facilitate farmers in obtaining post-harvest loans from banks.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (b)

Q. ‘SWAYAM Plus’ platform, recently in the news, is related to:

(a) Disaster Management
(b) Promotion to MSMEs
(c) Self filing of Income Tax returns
(d) Enhancing the employability of students
Answer: (d)

Q. Consider the following statements about financial market practices:

1. Front running involves trading stocks based on public information about an upcoming
transaction.
2. Insider trading is where company insiders trade their company’s stocks based on non-
public information.
3. While front running is legal, insider trading is banned in India.
How many of the above given statements are correct?
(a) One only
(b) Two only
(c) All three
(d) None

Economy 41
 Answer: (d)

Q. Consider the following:

1. Anji Khad Bridge
2. Pamban Bridge
3. Nehru setu
4. Chenab Bridge
How many of the above are part of the Udhampur-Srinagar-Baramulla Rail Link (USBRL) Project?
(a) One only
(b) Two only
(c) Three only
(d) All four
Answer: (b)

Economy 42
2 Economy

Money, Banking, Finance & Insurance

Imported Inflation
About Imported Inflation:
y It occurs when there is an increase in the prices of goods and services imported into a country.
y Reasons: Increased taxes on imports, depreciation of domestic currency, or inflation in the
exporting country.
y Impact:
⚪ It can affect a country’s economy by leading to higher consumer prices and potentially
reducing purchasing power.
⚪ It can also put pressure on the central bank to adjust monetary policy to control inflation
levels.

Why in news?
y The Asian Development Bank recently warned that India could face imported inflation as the
rupee could depreciate amid the rise in interest rates in the West.

New Version of SCORES by SEBI

Why in news?
Securities and Exchange Board of India (SEBI) recently launched the new version of the SEBI
Complaint Redressal System (SCORES 2.0).

About SCORES:
y 2011: Launch Year.
y A web based platform that enables investors to file their grievances online with SEBI, against
any entity involved in the market.
y Objective: to improve investor protection and trust while offering a prompt and efficient
resolution of concerns.

Features of SCORES 2.0:

y uniform period of time for handling complaints, which is 21 calendar days from the date of
receipt of the complaint.
y automated complaint forwarding to relevant authorities.
y To facilitate investor registration , SCORES 2.0 will be connected with the KYC Registration
Agency database.

SCORES platform discontinued:

y The previous Scores platform will no longer be available for investors to file new complaints
through.
y Through past SCORES, they can still check the status of any complaints that have already been
filed.

Economy 25
UPI for Cash Deposit
Key Points:
y Cash deposits are currently available only through debit cards at Cash Deposit Machines (CDMs)
y The RBI has proposed enabling UPI for cash deposit
y The RBI proposes allowing Prepaid Payment Instruments (PPIs) to be linked through third-party
UPI applications.

Why in the News?

y The Reserve Bank of India (RBI) has proposed enabling UPI for cash deposit facilities, enhancing
the convenience and popularity of UPI.

90 Years of the Reserve Bank of India (RBI)

Overview of the RBI Journey:
y The Reserve Bank of India was set up on the basis of
the recommendations of the Hilton Young Commission
(1926).
y 1935: The Reserve Bank of India Act, of 1934 provides
the statutory basis for the functioning of the RBI, which
commenced operations on April 1, 1935 from Calcutta.
y 1937: The RBI was permanently moved from Calcutta
to Mumbai, where its current Headquarters is located.
y 1949: The Reserve Bank of India (RBI) was initially a
privately owned entity but was nationalized.
y The first Indian Governor was Sir C D Deshmukh who
was also governor after its nationalization..

Key Functions of RBI:

y Implements and monitors monetary policy for price
stability and growth, including flexible inflation
targeting.
y Manages India’s foreign exchange reserves, facilitates
external trade and payments, and maintains the
external value of the rupee.
y Issues, exchanges, and destroys currency and coins.
Aims to provide the public with adequate and quality currency notes and coins, ensuring smooth
circulation.
y Regulates and supervises banks, non-banking financial
companies, payment systems, and other financial entities
to maintain stability, protect depositors’ interests, and
foster healthy financial intermediation.

Why in News?
y The RBI has recently completed 90 years of its formation.
The Finance Ministry unveiled a special Rs 90 denomination
coin marking the 90th anniversary of the RBI.

Economy 26
RBI’s Review on Liquidity Coverage Ratio ( LCR)
What is LCR?
y The LCR aims to ensure that financial institutions have enough high-quality liquid assets to
withstand a 30-day financial stress scenario.
y It was implemented as a part of the Basel III regulatory reforms post-2008 financial crisis.
Basel Norms are international banking regulations issued by the Basel Committee on Banking
Supervision.

Why in the News?

y The Reserve Bank of India (RBI) is considering a review of the Liquidity Coverage Ratio (LCR)
framework to enhance banks’ liquidity risk management.

Health Insurance for All Ages: IDRAI Directives

Why in News?
y IRDAI (Insurance Regulatory and Development Authority of India) has abolished the age limit
of 65 years for purchasing health insurance, aiming to broaden coverage and provide relief to
senior citizens.

Before After

Age limit for health insurance was 65 years. No age limit for buying health insurance.
Compulsory pre-insurance health check-ups No compulsory pre-insurance health check-
for those over 65. ups based on age.
No cover for pre-existing ailments for those Coverage available irrespective of existing
over 65. medical conditions.

Inheritance Tax
Inheritance Tax in India:
y An inheritance tax is a tax that is levied against a particular asset during the time of its
inheritance.
y Previously, inheritance tax was levied on specific assets inherited by an individual.
y Inheritance can occur through a Will or under personal law.
y It falls under direct taxation.
An Oxfam report says that 70% of countries don’t have any form of inheritance tax on wealth.

Current Status in India:

y The inheritance tax concept no longer exists in India.
y The Inheritance or Estate Tax was abolished in 1985.
y Properties passing to legal heirs upon death are considered transfers without consideration.
y Such transfers are excluded from gift tax under the Income Tax Act, 1961.
Some of the major countries levying tax on inherited properties are France, Germany, United
Kingdom and Spain.

Why in News?

Economy 27
y The debate on Inheritance tax has been sparked between major political parties in their political
speeches.

Balance of Payment & International Trade

Special Rupee Vostro Account (SRVA)

About SRVA:
y It is maintained by domestic banks in rupees for foreign banks.
y It enables domestic banks to offer global banking services to clients without physical presence
overseas.
y This arrangement allows domestic banks to cater to clients with international banking
requirements by facilitating transactions in their local currency, the rupee.
Nostro Accounts:
y It is a bank account that a commercial bank creates in some other foreign country with the
currency of a foreign country only.
Loro Account:
y It is a current account that is maintained by one domestic bank for another domestic bank in
the form of a third-party account, unlike nostro and vostro which is bilateral correspondence.

Why in news?
y India has implemented the Rupee/Kyat direct payment system through the Special Rupee
Vostro Account (SRVA) via Punjab National Bank, simplifying the payment process for traders
importing pulses from Myanmar.

Investment Facilitation for Development (IFD) Agreement by WTO

Why in the News?
y The 13th WTO Ministerial Conference in Abu Dhabi saw the non-adoption of the Investment
Facilitation for Development (IFD) Agreement.

Economy 28
The IFD Agreement
y Negotiations: Launched in 2017 by 70 countries through the Joint Statement Initiative; finalized
in November 2023.
y Support: Backed by around 120 of 166 WTO member countries (~70%).
y Purpose: To create legally binding provisions to facilitate investment flows.
y Key Provisions: Enhances regulatory transparency, and streamlines administrative procedures.
y Exclusions: No market access, investment protection, or investor-state dispute settlement
(ISDS) provisions.

Reasons for India’s Opposition

y Questioning whether investment should be part of the WTO.
y Concerns about the process followed to integrate the IFD Agreement into the WTO rulebook.

Peace Clause - WTO

Why in news?
y India has invoked the peace clause at the World Trade Organization (WTO) for the fifth
consecutive time for the marketing year 2022-23 (October-September).
y This is because India has breached the WTO prescribed subsidy limit for rice offered to its
farmers.

About Peace Clause:

y 2013 Bali Ministerial meeting: Establishment year.
y It is a temporary clause.
y According to this, developing countries can provide subsidies beyond the prescribed limits for
certain agricultural products, such as rice and wheat.
y It allows developing countries to support their domestic agricultural sectors while negotiations
continue on more permanent subsidy rules.
About WTO:
y 1995: Establishment year.
y As per the 1994 Marrakesh Agreement, it replaced the 1948 General Agreement on Tariffs and
Trade (GATT).
y HQ: Geneva, Switzerland.
y It regulates and facilitates international trade in goods, services, and intellectual property.
y It seeks to reduce tariffs, barriers, and other quotes to trade.

Economy 29
India revises the Double Taxation Avoidance Agreement (DTAA) with Mauritius

Why in News?
y India has revised its Double Taxation Avoidance Agreement (DTAA) with Mauritius to counter
treaty misuse aimed at tax evasion or avoidance.
Benefits of DTAA:
y Deduction: Allows deductions for taxes paid to foreign governments in the taxpayer’s home
country.
y Exemption: Provides tax relief in one of the two countries involved.
y Tax Credit: Offers a credit in the taxpayer’s country of residence for taxes paid abroad

About:
y Double Taxation: It refers to the imposition of taxes on the same source of income by two
different jurisdictions.
y Role of DTAA: It prevents international double taxation, thereby fostering economic exchanges
such as investment and trade between the two signing nations.

Key Points of Revision of DTAA:

y The amended agreement introduces the Principal Purpose Test which says benefits of a treaty
may be denied if the principal purpose of a business is just to benefit from the treaty.

Sectors of the Economy, GDP, Inflation

Krishi ICCC: To Leverage Technology for the Advancement of Agricultural Practices

Why in news?
y The Union Minister of Agriculture & Farmers’ Welfare inaugurated the Integrated Command and
Control Center (ICCC) at Krishi Bhawan, Delhi.

Economy 30
About Krishi ICCC:

Ministry Ministry of Agriculture & Farmers’ Welfare.

Empower farmers by providing them with digital technology-based

Objective
information, services, and facilities.
y Krishi Decision Support System (K-DSS), a platform under
development, will act as an agriculture data repository.
y Studying crop diversification maps and field variability for paddy
Application helps decision-makers find areas suitable for different crops,
Examples: allowing better advice for farmers.
y The ICCC can establish an ecosystem to generate personalized
farmer advisories through apps like Kisan e-mitra, a chatbot
designed for PM-Kisan beneficiaries.

Revised Wages of MGNREGA

About: MGNREGS is a demand-driven scheme that seeks to provide guaranteed 100 days of wage
employment per year to every rural household whose adult members volunteer to do unskilled
manual work.
Features: Legal right to work, a time-bound guarantee of work and unemployment allowance
(within 15 days), Decentralized planning– i.e. Gram Sabha recommends work, demand-driven
scheme.

How are MNREGA Wages Decided?

y The MGNREGA wage rates are fixed according to changes in the CPI-AL (Consumer Price Index-
Agriculture Labour), which reflects the increase in inflation in rural areas.

Key Points of Recent Hike:

Uttar Pradesh Increase from ₹230 in 2023 to ₹237 in 2024

Telangana, Andhra Pradesh,

Chhattisgarh, Gujarat, Madhya
Wage hikes ranging from 8% to 10.5%.
Pradesh, Maharashtra, Tamil
Nadu, and Goa

Haryana offering the highest daily wages at ₹374,

y Despite the government’s promise of 100 days of guaranteed work, the national average days of
employment provided per household in the financial year 2023-24 stood at only 51 days.

Why in News?
y The Union government recently notified the revised wages under the Mahatma Gandhi National
Rural Employment Guarantee Scheme (MGNREGS).

Economy 31
Food Waste Index Report 2024- by UNEP

About: It presents the most extensive compilation of food waste data to date, including thorough
analysis and modeling.
Published by: UNEP and Waste and Resources Action Programme (WRAP), an international charity
org.

Key Findings of the report:

Food Waste Generation in

y 1.05 billion tonnes of food waste are generated globally.
2022

y Food loss and waste contribute to 8%-10% of global

Impact on Climate Change
greenhouse gas emissions annually.
y Rural areas tend to waste less food compared to urban
areas.
Rural vs. Urban Food Waste
y This is due to better utilization of food scraps for pets,
livestock, and home composting.

Why in news?
y According to the Food Waste Index Report 2024 by the United Nations Environment Program,
Households across the globe wasted over one billion meals a day in 2022.

Iron Ore in India

Iron Ore:
y About: Iron ores are rocks and minerals containing metallic iron, extracted through various
processes.
y Abundance in India: India boasts substantial reserves of iron ore, predominantly found in
volcano-sedimentary Banded Iron Formations (BIF) dating back to the Precambrian era.
⚪ Major Iron Ore Belts in India: Orissa-Jharkhand belt, Durg-Bastar-Chandarpur belt, Bellary-
Chitradurga-Chimaglur-Tumkur belt, and Maharashtra-Goa belt. Iron metal is the commonest
of all minerals.
y Distribution in world: China, Brazil, Australia, India, Russia, Ukraine, the United States, South
Africa, Canada, Sweden.

Mineral Description Iron Content Applications

A reddish-black mineral found

y Major source of iron
in sedimentary, metamorphic, A p p rox i m at e ly
Hematite y Pigment in paints
and igneous rocks. Often used 70%
y Polishing compounds
as an iron ore.
A magnetic black or brownish-
black mineral found in various
y Iron production
Magnetite rock types. It is the most Up to 72%
y Coal washing
magnetic of all the naturally
occurring minerals on Earth.

Economy 32
 An amorphous mineral
consisting of hydrated iron y Minor ore of iron
Limonite oxide. It’s not a true mineral 35-50% y Historically used for iron
but a mixture of similar smelting
hydrated iron oxide minerals.

A mineral composed of iron y Source of iron, especially

Siderite carbonate, typically occurring Around 48% in historically iron-poor
in sedimentary deposits. regions

India’s Iron Ore Mining Market:

y Global Ranking: India ranks as the world’s second-largest producer of iron ore, trailing behind
Australia.
y Production Output: In 2023, India’s iron ore mine production reached a substantial 257.6 million
tonnes (Mt).

Why in News?
y A government-appointed panel has proposed setting up India’s first iron ore exchange to
determine the domestic sale price of the key steelmaking raw material.

Infrastructure

Cluster Development Programme (CDP)- SURAKSHA:

About CDP-SURAKSHA:
y SURAKSHA: System for Unified Resource Allocation, Knowledge, and Secure Horticulture
Assistance.
y Objective: To promote the growth of the horticulture sector by facilitating instant subsidy
disbursal to farmers’ bank accounts using e-RUPI vouchers.

Economy 33
y The previous system required farmers to buy planting material on their own and then apply for
the release of subsidies.
⚪ CDP-SURAKSHA offers subsidies at the moment of purchase.
y By mandating farmers to use geotagged images and videos to confirm the delivery of planting
material, the method assures accountability and transparency.
About e-RUPI vouchers:
y These vouchers are one-time payment mechanisms.
y They can be redeemed without requiring a card, digital payments app, or internet banking
access.
y Merchants accepting e-RUPI can receive these vouchers.
y NPCI states that e-RUPI can be shared with beneficiaries via SMS or QR code for specific
purposes or activities.

About CDP:
y A Central Sector Scheme.
y Objective: Growing and developing identified horticulture clusters to make them globally
competitive.
y Implemented by National Horticulture Board (NHB), Ministry of Agriculture.

Why in news?
y Under the Cluster Development Programme (CDP), the Indian government has launched a new
platform called CDP-SURAKSHA for providing horticultural farmers with subsidies.

NABARD Strategy 2030: For Green Financing

About NABARD Strategy 2030:
y Objective: To address India’s need for green financing.
y It is structured around four key pillars:
⚪ Accelerating green lending across sectors.
⚪ Playing a broader market-making role.
⚪ Internal green transformation.
⚪ Strategic resource mobilization.
y India requires approximately $170 billion annually to reach more than $2.5 trillion by 2030.
y As of 2019-20, India got about $ 49 billion in green financing.

Green Financing:
y Green financing is to increase the level of financial flows to sustainable development priorities.
y To facilitate the provision of climate finance, the UNFCCC has established a financial mechanism
to provide financial resources to developing countries.
⚪ Adaptation Fund under Kyoto Protocol.
⚪ Green Climate Fund.
⚪ Global Environment Fund (GEF).

Why in news?
y National Bank for Agriculture and Rural Development (NABARD) on the occasion of Earth Day
unveiled its Climate Strategy 2030 document aiming to address India’s need for green financing.

Economy 34
Nuclear Energy Summit
About:
y This summit is a collaborative initiative with the ‘‘Atoms4Netzero’ program of the International
Atomic Energy Agency.
y 2022: Launched during COP27
y ‘Atoms4NetZero’ supports Member States in utilizing nuclear energy for transitioning to net
zero emissions.
y The summit aimed to advocate for nuclear energy as a solution to climate change and energy
security concerns.

Why in News?
y Recently, Brussels hosted a significant Nuclear Energy Summit, marking a major international
gathering on nuclear energy.

Human Resource Development, Health and Education

India Employment Report 2024- by ILO

Key Points:
y Around 83% of the unemployed workforce in India comprises
young people.
y The percentage of unemployed youth with secondary or
Recent trends higher education has nearly doubled from the year 2000.
y The Labour Force Participation Rate (LFPR), Worker
Population Ratio (WPR), and Unemployment Rate (UR)
showed a decline from 2000 to 2018.
y India’s large young workforce lack essential skills. For
Skill deficit in youth example, 75% of youth are unable to send emails with
attachments.

About ILO:
y 1919: Year of establishment.
y HQ: Geneva, Switzerland.
y Objective: To achieve social and economic justice by setting international labour standards.
y It is one of the first and oldest specialized agencies of the UN.

Why in news?
y Recently, India Employment Report 2024 was released by the International Labour Organisation
(ILO) and the Institute of Human Development (IHD).

Two difficulty levels for additional language in CBSE Class XII

About National Education Policy (NEP): aims to introduce several changes in the Indian education
system - from the school to college level.

Economy 35
School Education Reforms:
y Educational Structure: Replaces the 10+2 system with a new 5+3+3+4 curricular structure
corresponding to ages 3-8, 8-11, 11-14, and 14-18 years.
y Universalization Goal: Aim for 100% Gross Enrolment Ratio in school education by 2030 and to
bring back 2 crore out-of-school children.
y Board Exams: Class 10 and 12 board exams will be easier, focusing on core competencies, with
an option for students to take the exam twice.

Language Learning in Class 12:

y Language Study Expansion: Increases the number of languages studied from one to two in
Class 12, with at least one being a native Indian language.
y Difficulty Levels: Proposes two levels of difficulty for additional languages—basic and standard,
mirroring the options available for mathematics in Class 10.

Why in the News?

y The government is considering offering students two levels of difficulty for the additional
language — basic and standard.

India has 2nd highest hepatitis cases, 11% of global burden: WHO

Aspect Hepatitis A Hepatitis B Hepatitis C

Blood, semen, other body

Transmission Fecal-oral route Blood-to-blood contact
fluids
No specific
Antiviral medications, Antiviral medications,
Treatment treatment, often
sometimes interferon sometimes interferon
resolves on its own
Available and
Vaccination Available and effective No vaccine available
effective
Can lead to chronic Can lead to chronic
Chronic
Not chronic infection, cirrhosis, liver infection, cirrhosis, liver
Infection
cancer cancer
Often asymptomatic, but Often asymptomatic
Flu-like symptoms,
Symptoms can include jaundice, fatigue, initially, can lead to liver
jaundice
nausea damage
Safe sex, avoiding sharing Safe sex, avoiding
Hygiene practices,
Prevention needles or personal items, sharing needles or
vaccination
vaccination personal items

WHO Report Data:

y Over 50,000 new hepatitis B cases, 1.4 lakh hepatitis C cases, and 1.23 lakh deaths from these
infections were reported in 2022 in India.
y Viral hepatitis is a global health issue, with approximately 1.3 million deaths annually, on par
with tuberculosis.

Economy 36
Immunization on Hepatitis:
y The Hepatitis B vaccine is included in India’s Universal Immunization Programme.
y Treatment for hepatitis B and C is available, with a push towards treating all diagnosed cases
similarly to HIV management.

Why in News?
y WHO has highlighted that India faces a significant challenge with viral hepatitis.

India’s Fertility Rate Forecast by Lancet Study

Total fertility rate (TFR): It refers to the total number of children born or likely to be born to a
woman in her lifetime if she were subject to the prevailing rate of age-specific fertility.

Replacement level:
y Level of fertility at which a population exactly replaces itself from one generation to the next.
y In developed countries, replacement level fertility can be taken as requiring an average of 2.1
children per woman.

Key Points of the Study:

Change in Fertility Rate of India

1950 2021
6.18 1.91
y Causes of Decline on TFR: Economic development, changing intergenerational wealth flows,
increased female literacy, and women’s workforce participation
y Impact: By 2050, the elderly population in India is expected to exceed 20%.
y Suggestions: Supportive measures for families, gender equity initiatives, economic policies for
job creation, and reforms in social security and pensions.
y Global Outlook: By 2050, 76% of countries are projected to have TFRs below the replacement
level.

Why in News?
y The leading medical journal Lancet has published a study that predicts that India’s fertility rate
will dip to 1.29 by 2050.

Decline of 16% of new TB cases in India

Key Points:
Decline in Tuberculosis (TB) Incidence and Mortality:
y India has seen an 18% reduction in mortality since 2015.

2015 2022

Incidence rate 237 per lakh population. 199 per lakh population.
Mortality rate 28 per lakh population. 23 per lakh population.

Economy 37
Target for Eliminating TB:
y India has set 2025 as the target for eliminating tuberculosis.

Why in news?
y India TB Report 2024 was recently released by the Union Health Ministry.

Kala Azar (visceral leishmaniasis)- Eliminated in India

About Kala Azar:

y Caused by a protozoan parasite Leishmania donovani and transmitted by the female sandfly,
Phlebotomus argentipes.
y Symptoms: Irregular fever, weight loss, enlargement of the spleen and liver, and anaemia.
y Prevention: Avoid getting bitten by a sand fly.
y Treatment: The main drugs available are antimony, amphotericin, paromomycin and now the
oral drug miltefosine.

Key Points:
y India had initially aimed to eliminate kala-azar by 2010, but the target was extended until 2023
due to persistent challenges.
y India reported only 520 cases of kala-azar in 2023 across India.
y Elimination criteria set by the World Health Organization (WHO): no block in the country
reporting more than one case per 10,000 people.

Why in news?
y India has achieved its target of eliminating Kala Azar, according to data from the National
Centre for Vector Borne Diseases Control (NCVBDC).

National Organ and Tissue Transplant Organisation (NOTTO)-ID

About National Organ and Tissue Transplant Organization (NOTTO):
y Set up under the Directorate General of Health Services, Ministry of Health and Family Welfare.
y Functions:
⚪ Procurement and distribution of organs and tissues.
⚪ Registry of organs, tissue donation, and transplantation in the country.
y It has two divisions:
⚪ National Human Organ and Tissue Removal and Storage Network.
⚪ National Biomaterial Centre (National Tissue Bank).

Why in news?
y According to the Health Ministry, all cases of organ transplants must be assigned a unique
NOTTO-ID for both the donor and the recipient.

More about news:

y Directive applicable in both cases whether organ transplantation is from living or deceased
donors.
y Objective: To eliminate commercial dealings in organs, especially those involving foreign
citizens.

Economy 38
Probable MCQs:
Q. What is CDP-SURAKSHA, recently in the news?
(a) It is a platform to disburse subsidies to horticulture farmers.
(b) It is a portal for credit support to disadvantaged sections of society.
(c) It is a platform to provide the necessary support to women facing physical abuse.
(d) It is an Accident Insurance Scheme offering accidental death and disability cover.
Answer: (a)

Q. The terms ‘Agreement on Agriculture’, and ‘Peace Clause’ appear in the news frequently in the
context of the affairs of the
(a) Food and Agriculture Organization
(b) United Nations Framework Conference on Climate Change
(c) World Trade Organisation
(d) United Nations Environment Programme
Answer: (c)

Q. Consider the following statements:

Statement-I: In India, Double Taxation Avoidance Agreement (DTAA) cannot be given effect
unless notified under the Income Tax Act.
Statement-II: DTAA ensures that no company or individual pays income tax twice while working
in a foreign country or for a foreign company.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation
for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct
explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct
Answer: (b)

Q. Consider the following statements in context of National Organ and Tissue Transplant
Organization (NOTTO):
1. It is set up under the Directorate General of Health Services, Ministry of Health and Family
Welfare.
2. It has created the National Human Organ and Tissue Removal and Storage Network.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (c)

Economy 39
2 Economy

Money, Banking, Finance & Insurance

Drip Pricing

y About: Drip pricing is a technique where only part of a product’s price is advertised upfront,
with additional mandatory charges revealed as the customer progresses through the buying
process.
y It is common in hospitality and travel and now even in e-commerce.
y It often involves fees for booking, service, resort, or credit card use, as well as charges for
amenities like internet access.
y This method can lure customers into starting a purchase before revealing the full cost,
complicating comparison shopping and potentially deceiving consumers.

Why in News?
y The Centre recently issued a warning about “drip pricing,” highlighting its potential to surprise
consumers with hidden charges.

Towards Green Growth: RBI MPC Report

Why in news?
y Reserve Bank of India’s (RBI’s) latest Monetary Policy Report has given primacy to “extreme
weather events” and “climate shocks”.
y This affects food inflation and has a broader impact on the natural rate of interest, thereby
influencing the economy’s financial stability.

Key Points:

The natural rate of interest is the theoretical short-term interest rate that would support the
economy at maximum output in absence of business cycle shocks.

Economy 21
 y Without climate mitigation policies, long-term economic
Climate Change Impact
output could decrease by 9% by 2050.
y Issuance of ₹16,000 crore Sovereign Green Bonds and
Steps Taken by RBI involving Foreign Institutional Investors in green government
securities.
y Consultation is needed to develop a green taxonomy reflecting
India’s diverse developmental paths.
Suggestions
y Focus on reducing financial system risks during the transition
to a sustainable economy.

A green taxonomy is a framework to assess the sustainability credentials and possible ranking
of an economic activity.

Co-Lending Loans

About Co-Lending:
y It is an arrangement where multiple lenders partner to provide loans to borrowers.
y This helps increase lending capacity and reduces risk for individual lenders.
y Co-lending benefits banks by helping them reach untapped markets and customers, while
NBFCs gain access to lower-cost funds, enhancing the overall customer experience.
y Each lender sets their own terms and conditions.
y As per RBI, banks and NBFCs can co-lend loans to priority sectors, with a minimum 20% credit
risk on NBFCs, and the rest on banks.

Why in the news?

y In an effort to increase credit flow, the Finance Ministry has tasked SBI with establishing a
committee to resolve co-lending concerns.

Economy 22
Rising debt strains household savings

About Household financial savings:

y It refers to the portion of household income that is not spent on consumption or immediate
expenses but is instead set aside for future use. This can include deposits in savings accounts,
investments in stocks and bonds, contributions to retirement accounts, and other forms of
saving.

Reasons behind the Lower Financial Saving:

y Increased borrowing or reduced gross financial savings are the primary drivers of lower net
financial savings.
y Lower net financial savings due to increased borrowing for consumption or investment can
stimulate aggregate demand and output.
y Higher Interest Rates can lead to increased interest payments by households, reducing their
net financial savings.

About Household Debt:

y Household debt is all household liabilities (including non-profit institutions serving households)
that require payments of interest or principal by households to creditors at a fixed date in the
future.

Why in the News?

y The bone of contention in the recent debate has been the drastic fall in household net financial
savings to GDP ratio during 2022-23 on account of a higher borrowing to GDP ratio.

Economy 23
Paradox of Savings

Key Points:
y Concept:
⚪ It is also known as the paradox of thrift.
⚪ It suggests that while saving is beneficial individually, it might not be beneficial to the
broader economy.
⚪ Contrary to the belief that higher individual savings rates boost overall savings, this theory
posits that it might actually decrease them.
⚪ It says high savings rates might lead to under-consumption, weakening economic cycles
due to reduced demand and investment.
y Origins: Introduced by British economist John Maynard Keynes in his 1936 book, “The General
Theory of Employment, Interest, and Money.”
y Suggestion solution: Advocates for increased consumer spending to stimulate economic growth,
asserting that savings eventually aim for investment in production for consumer purchase. Lack
of consumer spending can deter capitalists from investing further.
y Counterargument:
⚪ Critics believe that higher savings do not harm the economy; rather, they argue that reduced
consumer spending increases savings and investments.
⚪ Money saved is channeled into banks, leading to lower interest rates and increased lending,
thereby stimulating economic activity through expanded credit and spending.

Why in News?
y The recent fall in household savings has led to several debates in India about its impact.

India International Bullion Exchange (IIBX)

Key Points
y About: India’s first International Bullion Exchange.

Economy 24
y Location: Based at GIFT City (Gujarat International Finance Tech City) IFSC (International Finance
Services Center), Gandhinagar, Gujarat.
y Purpose: Provides a gateway to import bullion into India and offers a world-class bullion
exchange ecosystem for bullion trading
y Regulation: Regulated by the International Financial Services Centers Authority (IFSCA)

Why in the News?

y State Bank of India (SBI) recently announced it has become the first trading-cum-clearing
member at the India International Bullion Exchange (IIBX).

Balance of Payment & International Trade

India continues to be on ‘Priority Watchlist’ by USA on IP Rights

Key Issues in India:

y Efforts to modernize the patent system have not fully resolved these issues.
y U.S. pharmaceutical industry voices concerns over India’s patent dispute mechanisms.
y Questions about the balance between IP protection and access to essential technologies
persist.
Special 301 Report:
y The Special 301 Report is an annual USTR publication identifying countries with inadequate
IP protection or market access issues for U.S. entities relying on IP rights.
y It categorizes countries into the Priority Watch List or Watch List.

Why in News?
y The United States Trade Representative (USTR) continues to place India on the ‘Priority Watchlist’
due to ongoing intellectual property (IP) rights challenges.

Global Trade Update 2024: UNCTAD

Why in the News?

y The United Nations Conference on Trade and Development (UNCTAD) has released its Global
Trade Update 2024.
y Additionally, UNCTAD has officially rebranded as “UN Trade and Development” as part of its
60th-anniversary celebrations.

Key Highlights of the Global Trade Update 2024

y Global trade dipped by 3% to USD 31 trillion in 2023 after peaking in 2022.
y Developing countries saw a sharper decline in trade, with imports and exports falling by 5% and
7%, respectively.
y Most regions saw negative trade growth in 2023, except for a significant increase in intra-
regional trade in Africa.

Economy 25
 About UNCTAD
y Establishment: 1964, headquartered in Geneva, Switzerland.
y Purpose: Promotes sustainable development, particularly in developing countries, through
international trade, investment, finance, and technology transfer.

IMF’s Stand-By Arrangement

About IMF’s Stand-By Arrangement:

y Purpose: Provides short-term financial assistance to countries facing balance of payments
difficulties.
y Users: Primarily used by advanced and emerging market countries; occasionally by low-income
countries in conjunction with the Standby Credit Facility (SCF).
y Eligibility: Available to all IMF member countries experiencing or anticipating external financing
problems.
y Conditionality:
⚪ Requires countries to implement economic policies addressing their financial issues.
⚪ Disbursements are contingent on meeting quantitative performance criteria and
implementing critical structural measures.
y Duration: Generally 12–24 months, extendable up to 36 months.

Why in News?
y The International Monetary Fund (IMF) has released USD 1.1 billion to Pakistan as part of a
bailout package under its Stand-By Arrangement (SBA).

Infrastructure

Project ISHAN-to strengthen air traffic management (ATM)

About Indian Single Sky Harmonized Air Traffic Management (ISHAN):

y It will unify Indian air space under a single authority in Nagpur.
y Currently, Indian airspace is divided into four flight information regions (FIRs).
⚪ Mumbai, Kolkata, Delhi, Chennai, and a sub-FIR Guwahati.
y Benefits: Clear seamless operations, reduced congestion, increased capacity, efficient routing,
and reduced flight times.
y Challenges: Technological implementation, changed the process of air traffic management.

Why in news?
y India has initiated the process of consolidating its four airspace regions into a single entity
spanning the entire nation.

Economy 26
Authorized Economic Operator (AEO) status

Why in news?
y The Ministry of Finance has granted Authorized Economic Operator (AEO) status to the gem and
jewelry sector, as part of efforts to promote ease of doing business.

About AEO:
y It is an initiative to protect and ease international trade that is run under the World Customs
Organisation (WCO) SAFE Framework of Standards.
y Objective: To enhance international supply chain security and facilitate the movement of goods.
y Benefits: Faster clearance times, reduced inspections, enhanced security, and enhanced
partner communication in the supply chain.

AEO in India:
y 2011: Introduced by the Central Board of Indirect Taxes and Customs (CBIC).
y The Indian AEO initiative is built on the security criteria outlined in the WCO SAFE Framework.

India is now third-largest producer of solar power

Why in news?
y According to a report by the international energy analytics agency, Ember, In 2023, India overtook
Japan to become the world’s third-highest producer of solar power.

Key points:

y In 2023, India produced 113 billion units (BU) of solar power.

y As of May 2024, solar power accounted for 18% of India’s total installed
Solar Power in India
electricity (442 GW).
y Solar power made up only 6.66% of the power actually produced.
Installed Power y India ranks fifth globally in terms of installed power capacity, with 73
Capacity gigawatts (GW).
y Renewable sources of energy accounted for 30% of global electricity
production.
y China is the leading producer of solar power in the world.
Global Solar Power y In 2024, China generated 584 BU of solar power, which is more than
Production the combined production of the United States, Japan, Germany, and
India.
y China accounted for 51% of the additional global solar generation and
60% of new global wind generation.

IREDA becomes the 17th Navratna of India

Why in news?
y Recently, IREDA (Indian Renewable Energy Development Agency), was conferred with Navratna
status by the Department of Public Enterprises (Ministry of Finance).

Economy 27
About IREDA:
y 1987: Establishment Year.
y Ministry: Administratively controlled by the Ministry of New and Renewable Energy (MNRE).
y Objective:
⚪ Financing renewable energy projects and setting up solar manufacturing units.
⚪ Encourage the use of renewable energy to foster sustainable growth.
About Navratna Company:
y A group of public-sector companies known as “Navaratna Companies” can make investments
up to Rs. 1000 crores without the central government’s permission.
y Nine Public Sector Enterprises (PSEs) were initially granted the Navratna designation in 1997.
y Criteria to get Navratna Status:
⚪ It must report a net profit of more than Rs 5,000 crore for three consecutive years and
⚪ maintain an average annual turnover of Rs 25,000 crore for three years or
⚪ have an annual average net worth of over Rs 15,000 crore for three years.
y However, they need approval from the Cabinet Committee on Economic Affairs (CCEA) to
make investments abroad.
y To get Navratna status, the PSU should be a Miniratna-I, a Schedule A company, and should
have obtained an excellent or very good MoU rating in three of the last five years.

Probable MCQs
Q. According to X phenomenon, if all the people of the economy increase the proportion of
income they save, the total value of savings in the economy will either decrease or remain
unchanged. Which of the following represent the X?
(a) Crowding out
(b) Crowding in
(c) Paradox of thrift
(d) Paradox of prosperity
Answer: (c)

Q. Consider the following statements:

1. The gem and jewellery sector in India has Authorised Economic Operator (AEO) status.
2. AEO is a program under the aegis of the World Customs Organization (WCO) SAFE Framework
of Standards to secure and facilitate Global Trade.
Which of the statements given above is/are correct?
1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2
Answer: (c)

Q. Which one of the following best describes the term ‘Drip Pricing’, sometimes seen in the news?
1. A pricing strategy where the initial price of a product is low, but additional charges are
added over time.
2. A marketing tactic where prices are gradually reduced over a period to attract customers.
3. A pricing technique in which firms advertise only part of a product’s price and reveal other
charges later as the customer goes through the buying process.

Economy 28
 4. A pricing method that offers discounts to customers who pay for a service or product in
installments.
Answer: (c)

Q. With reference to the IREDA (Indian Renewable Energy Development Agency), consider the
following statements:
1. Financing renewable energy projects and setting up solar manufacturing units.
2. Encourage the use of renewable energy to foster sustainable growth.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 and 2
Answer: (c)

Economy 29
2 Economy

Money, Banking, Finance & Insurance

Digital Payment Intelligence Platform

About Digital Payment Intelligence Platform:
� The objective is to leverage advanced technologies to reduce payment fraud in response to
rise in fraudulent activity.
� The former MD and CEO of NPCI, A.P. Hota, has chaired a group that the RBI established to
push this effort.
� This committee is anticipated to provide suggestions within two months after looking into a
number of areas of developing a digital public infrastructure for the platform.

Why in News?
� Recently, the Reserve Bank of India (RBI) has proposed to set up a Digital Payment Intelligence
Platform which will harness advanced technologies to mitigate payment fraud risks.

Preston Curve Postulate

About Preston Curve:
� It is a concept in economics that examines the relationship between life expectancy and per
capita income.
� It was first proposed by American sociologist Samuel H. Preston in his 1975 paper “The changing
relation between mortality and level of economic development”.
Other Important Curves:
y Kuznets Curve: According to this hypothesis, as an economy develops, market forces first
increase and then decrease economic inequality.
y Lorenz Curve: Is a graphical representation of the distribution of income or of wealth.
y Gini Coefficient: Is a statistical measure of inequality that describes how equal or unequal
income or wealth is distributed among the population of a country.
y Laffer Curve: It states that if tax rates are increased above a certain level, then tax revenues
can actually fall because higher tax rates discourage people from working.
y Phillips Curve: It states that inflation and unemployment have a stable and inverse
relationship.
y Engel Curve: It describes how the spending on a certain good varies with household income.

Why in News?
� Recently, the American sociologist Samuel Preston found that people living in richer countries
generally have longer lifespans compared to those living in poorer countries.

Economy 29
Budget, Taxation & GST

Solid Waste Management Cess (SWM)

� Solid Waste Management Cess:
⚪ It is a levy imposed by local governments to fund the management and treatment of solid
waste.
⚪ It generates funds for collecting, transporting, processing, and disposing of solid waste,
ensuring sustainable waste management.
⚪ According to the Solid Waste Management Rules, 2016, ULBs are required to collect user
fees or cess for SWM (Solid Waste Management (SWM) services.
� Solid Waste Management Rules 2016:
⚪ Generators’ responsibilities have been established to divide waste into three streams: Wet
(Biodegradable), Dry (Plastic, paper, metal, wood, etc.) Domestic hazardous waste (diapers,
napkins, empty containers, etc.)
⚪ Waste generators will need to pay: a ‘User Fee’ to waste collectors, a ‘Spot Fine’ for Littering
and Non-segregation.
⚪ Biodegradable waste should be processed, treated, and disposed of on-site through
composting or biomethanation whenever possible.

Initiatives Related to Waste Management:

y Bio-Medical Waste Management Rules, 2016
⚪ It provides a regulatory framework for managing bio-medical waste generated in the
country.
y Plastic Waste Management (Amendment) Rules, 2022
⚪ It aims to enhance plastic waste management practices, emphasizing extended producer
responsibility (EPR) and sustainable solutions
y Waste to wealth portal
⚪ It is under the waste to wealth mission and acts as a common platform for technology
providers, government stakeholders, and urban local bodies to seek relevant waste
management solutions.
y Waste to Energy
⚪ Generating electricity and/or heat from waste through processes like incineration or
gasification.
y Project REPLAN
⚪ It involves revising and adjusting an existing project plan when changes or unforeseen
circumstances arise.

Why in News?
� Recently, the Bruhat Bengaluru Mahangara Palike (BBMP) proposed a Solid Waste Management
(SWM) Cess of ₹100 per month for each household.

Burp Tax: Tax on Methane Emissions from Livestock

About Burp Tax:
� It is a term for a tax on methane emissions from livestock.

Economy 30
� This tax aims to address environmental concerns related to greenhouse gas emissions from
agriculture.
� Recently Denmark has announced to tax livestock farmers for greenhouse gases emitted by
their cows, sheep and pigs from 2030.

Key Aspects
� Methane Emissions: Livestock farming is a significant source of methane, a potent greenhouse
gas.
� Environmental Impact: The tax incentivizes farmers to adopt practices that reduce methane
emissions.
� Implementation: For example, Some countries like Denmark are planning to implement a Burp
tax to combat climate change.
Global Warming Potential (GWP) of Methane:
y Time Horizon of 20 Years (GWP20): Methane’s GWP is approximately 84-87 times that of CO₂.
y Time Horizon of 100 Years (GWP100): Methane’s GWP is approximately 28-36 times that of
CO₂.

Why in News?
� Recently, New Zealand has removed the Burp Tax on livestock.

Tariff Hikes by Telecom Companies

About Tariff Hikes:
� Telecom operators target Average Revenue per User (ARPU) above INR 300 to sustain business
models.
� With recent spectrum investments and 5G launches, they shift focus from market share to
monetisation, marking a new phase in 5G service pricing.

Why in News?
� The three leading telecom operators of India i.e Reliance Jio, Bharti Airtel and Vodafone Idea (Vi)
hiked tariffs to monetize 5G and boost the sector’s financial health.

Balance of Payment & International Trade

S&P Global revises India outlook to positive

About S&P global Credit Rating Agency:
� Reflects upon the level of investment risk associated with the entities and their financial
instruments.
� Headquarter: New York City, USA
� Rating Scale:
⚪ Investment Grade: Ratings from AAA to BBB- are considered investment grade, indicating
relatively low credit risk.
⚪ Non-Investment Grade (Junk): Ratings from BB+ to D are considered speculative or non-
investment grade, indicating higher credit risk.

Economy 31
Why in News?
� S&P GLOBAL Ratings revised up the outlook for India to ‘positive’ from ‘stable’, retained ‘BBB-’
long-term and ‘A-3’ short-term unsolicited foreign and local currency sovereign credit ratings.

India and the ‘managed care’ promise

About Managed Care Organizations (MCOs):
� Managed treatment Organizations (MCOs) focus on cost reduction and preventive treatment,
combining healthcare delivery and insurance under one roof.
� MCOs began in the 1970s in the US and have since spread throughout the world. They are
beginning to be seen in India as a viable model for expanding Universal Health Coverage (UHC).
� It aims to streamline healthcare delivery, reduce hospitalizations, and control costs by focusing
on preventive care, making them a topic of interest in healthcare reform discussions.

Why in News:
� The increasing use of health insurance, particularly Managed Care Organizations (MCOs), as a
modality for achieving Universal Health Coverage (UHC) in India.

OPEC+ extends deep oil output cuts into 2025

About OPEC+:
� Grouping of 23 oil producing countries (OPEC and non-OPEC countries).
� 2016: Established to coordinate and manage oil production to stabilize global oil markets.
� Members: 13 OPEC countries plus Azerbaijan, Bahrain, Brunei, Kazakhstan, Russia, Mexico,
Malaysia, South Sudan, Sudan, and Oman.

What is OPEC?
� It stands for the Organization of the Petroleum Exporting Countries.
� Aim: to ensure the stabilization of oil markets to secure efficient, economic, and regular supply
of petroleum to consumers.
� 1960: Established in Baghdad, Iraq.
� Headquarter: Vienna, Austria.
� Member Countries: Algeria, Angola, Congo (Brazzaville), Equatorial Guinea, Gabon, Iran, Iraq,
Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates (UAE) and Venezuela.

Why in News?
� OPEC+ agreed to extend most of its deep oil output cuts well into 2025, amidst rising production
by the USA.

The High Cost of a Global Economic Decoupling

About Economic Decoupling:
� It refers to the process where two or more economies, which were previously interdependent,
reduce their economic connections and dependencies, including trade, investment, and supply
chain linkages.
� It represents a significant shift in global economic policies and relationships, leading to:

Economy 32
 ⚪ Regionalization, Technological Sovereignty, and Economic Realignment.

Causes of Economic Decoupling:

y Geopolitical Tensions: US-China trade war.
y National Security Concerns: Dependence on hostile countries.
y Economic Policies: Protectionist measures and tariffs.
y Technological Rivalry: Competition in 5G, semiconductors, AI.

Mechanisms
y Trade Barriers: Tariffs, quotas, export controls.
y Supply Chain Diversification: Reducing dependence on specific regions.
y Domestic Production: Encouraging local manufacturing.
y Investment Restrictions: Limiting foreign investments in strategic sectors.

Implications
y Economic: Higher production costs, reduced trade volumes, supply chain reorganization.
y Political: Strained diplomatic relations, economic blocs formation.
y Technological: Innovation drive for self-sufficiency.
y Social: Job losses in trade-dependent industries.

Case Studies
1. US-China Decoupling: Measures include tariffs, export controls on technology, restrictions on
Chinese companies like Huawei, and incentives for US companies to relocate manufacturing
back to the US or other countries.
2. EU’s Strategic Autonomy: Efforts to reduce dependence on the US and China in areas like
technology, defence, and critical raw materials.

Why in News?
� The US has announced to put tariffs on a range of Chinese imports and has refuelled fears of
a new phase of decoupling in the world economy.

Sectors of the Economy, GDP, Inflation

Minimum Support Prices

About MSP: Minimum Support Price
� To ensure fair prices to farmers
� 1966-67: introduced by Central government
� CACP (Commission for Agricultural Cost & Prices) recommends MSP for 23 crops before the
sowing period each year
� Fair and Remunerative price for Sugar is also declared.
� MSP doesn’t have any lawful stature.
� Crops covered under MSP:
⚪ KHARIF CROPS (14): Paddy, Jawar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Cotton, Ground
Nuts, Sunflower, Soyabean, Sesame and Nigerseed
⚪ RABI CROPS (7): Wheat, Barley, Gram, Masur, Rapeseed & Mustard, Safflower and Torai
⚪ CALENDAR YEAR CROPS (4): Copra, De-husked Coconut, Jute and Sugarcane (FRP)

Economy 33
Why in News?
� Amid Agrarian distress from past years, Farmers have been demanding legislation providing
statutory backing for minimum support price (MSP) of crops.

Direct Seeding of Rice Method

About Direct Seeding of Rice Method (DSR):
� It is also known as ‘broadcasting seed technique,’ or ‘tar-wattar’ technique.
� In this approach, seeds are directly drilled into the fields, eliminating the need for nursery
preparation and transplantation.
� It reduces water requirements by about 15%, with water logging occurring only after a month,
benefiting areas with delayed rainfall.
� With the help of drum seeders in this method, only two laborers are needed per acre compared
to 25-30 in traditional methods.
� The DSR method has gained traction in regions including Punjab, Telangana, and Andhra Pradesh.

Why in News?
Punjab state has been actively promoting the direct seeding of rice (DSR) treduce water use by 15%
to 20%.

Global Carbon Project Report on Nitrous Oxide (N2O)

About Nitrous Oxide (N2O):
� N2O is a colourless, odorless, and non-flammable gas that is also referred to as ‘laughing gas’
or ‘happy gas’.

Impact of N2O:
⚪ N2O is a potent greenhouse gas, with a global warming potential 298 times greater than
carbon dioxide.
⚪ Contributes to ozone layer depletion.
⚪ Deposited nitrous oxide can cause nitrate accumulation in water, leading to eutrophication.
⚪ Long-term high N2O exposure can affect human health by causing respiratory problems
and assisting in the production of smog.

Key Point of the Report:

� India is the world’s second-largest emitter of nitrous oxide (N2O) after China, accounting for 11%
of global man-made emissions in 2020.

Why in News?
� As per the report recently released by the Global Carbon Project, nitrous oxide rose 40 per cent
between 1980 and 2020.

Economy 34
QCO Relaxation
About Quality Control Orders (QCO):
y QCOs is a regulatory measure issued by governments to ensure that certain products meet
specified quality standards before they are imported, sold, or used domestically.
y QCOs aim to safeguard consumer interests, promote product quality, and ensure compliance
with regulatory standards.
y QCOs can apply to various products and industries, ranging from electronics and textiles to
food and pharmaceuticals.
y QCOs can affect trade dynamics, market access for foreign products, and consumer confidence
in domestic and imported goods.
y Following stakeholder consultations, QCOs are issued by various central government ministries.

Why in News?
y Recently, the Textile Industry has welcomed the relaxation of the mandatory Quality Control
Order (QCO) for polyester fiber, filament yarn, and spun yarn imported under various schemes.

Infrastructure

World’s Highest Railway Bridge: Chenab Bridge

About Chenab Bridge:

� It is the highest arch railway bridge in the world, connecting Sangaldan in Ramban district to
Reasi.
� The bridge, part of the Udhampur-Srinagar-Baramulla Rail Link (USBRL) project, stands 35
meters taller than the Eiffel Tower, spanning 1315 meters with a 467-meter arch.
About Chenab River:
y It is a Left Bank Tributary of River Indus.
y It flows west through Jammu and Kashmir, between Siwalik Range and Lesser Himalayas.
y Turning southwest, it enters Pakistan and descends into the broad alluvial lowlands of Punjab
province.

Economy 35
Why in News?
� Recently, the World’s highest railway bridge on the Chenab River in Jammu and Kashmir had its
first train run successfully.

India’s Rooftop Solar (RTS) Programme

What is the Rooftop Solar (RTS) Programme?
� 2014: launched and focuses on expanding rooftop solar installed capacity in the residential
sector.
� It provides Central Financial Assistance and incentives to distribution companies (DISCOMs).
� Objective: To achieve 40 GW of rooftop solar installed capacity by March 2026.
� 2024: Pradhan Mantri Surya Ghar Muft Bijli Yojana announced, aims to install RTS systems in
one crore households, providing up to 300 units of free electricity monthly.

Other Government Initiatives for Solar Power:

Scheme Description

Covers grid-connected renewable energy power plants

Kisan Urja Suraksha evam Utthaan
(0.5 – 2 MW), solar water pumps, and grid-connected
Mahabhiyan (PM-KUSUM)
agriculture pumps.
Scheme for Development of Ultra
Develops Ultra Mega Renewable Energy Power Parks
Mega Renewable Energy Power
(UMREPPs) under the existing Solar Park Scheme.
Parks
Aims to promote large grid-connected wind-solar PV
National Wind-Solar Hybrid Policy,
hybrid systems for optimal use of wind and solar resources,
2018
transmission infrastructure, and land.
Launched in September 2016 to install solar street lighting
Atal Jyoti Yojana (AJAY) systems in states with less than 50% household grid power
coverage (as per Census 2011).
Aims to establish India as a global leader in solar energy
Jawaharlal Nehru National Solar
by creating favorable policy conditions for its nationwide
Mission
deployment.

India’s updated NDC aims to reduce GDP emissions intensity by 45% from 2005 levels and
achieve 50% cumulative electric power from non-fossil fuels by 2030, with the current capacity
at 186.46 GW (43.81% of the total).

Why in News?
� The installed Rooftop Solar (RTS) capacity in India increased by 2.99 GW in 2023–2024,
according to the Ministry of New and Renewable Energy.

Economy 36
Great Nicobar Island Infrastructure Project

About the Great Nicobar Island Infrastructure Project:

� The mega project implemented by Andaman and Nicobar Islands Integrated Development
Corporation (ANIIDCO), includes an International Container Trans-shipment Terminal (ICTT), a
greenfield international airport, a township, and a gas and solar-based power plant.
� The project aims to enhance India’s maritime economy and tourism by leveraging the island’s
strategic location.
About Great Nicobar:
y Located at the southernmost tip of the Nicobar Islands in the Indian Ocean, it is the largest
island in the Nicobar group, covering approximately 1045 square kilometers.
y Known for its rich biodiversity, it includes the Great Nicobar Biosphere Reserve with unique
flora and fauna.
y Tribes: Nicobarese and the Shompen.

Why in News?
� Several people have raised concerns about the proposed Rs 72,000-crore infrastructure upgrade
on Great Nicobar Island, citing threats to indigenous inhabitants and the fragile ecosystem.

Economy 37
Human Resource Development, Health and Education

Does Inequality lead to growth?

About Negative Economic Effects of Inequality:
� Monopoly power concentration among capitalists may have adverse effects on growth, welfare,
and consumption.
� Monopolies raise prices and profit margins, which lowers real wages and purchasing power
and, in turn, lowers output and investment.

About Impact of Inequality on Growth:

� Higher pricing and profit margins in monopolistic economies result in lower real wages and
consumption, which reduces the multiplier effect of investment on income growth.
� Income inequality limits consumers’ purchasing power and hampers economic growth.

About Redistribution and its Effects:

� Some argue that redistribution measures may discourage entrepreneurs since they provide
fewer incentives for saving and investing.
� However, taxing wealth has no effect on investment because investment is based on hopes for
future profits rather than actual riches.
� The multiplier effect can be enhanced by redistribution by boosting purchasing power and
encouraging investment in areas with high demand.

About Thomas Piketty’s Proposal:

� Implementing a basic income and taxing billionaire wealth, as suggested by Thomas Piketty,
could promote innovation and entrepreneurship.
� Redistribution can reduce inequality and promote a healthy economy when combined with
other policy initiatives.

Why in News?
� Researchers from the Paris School of Economics have highlighted that modern India exhibits
greater inequality than during colonial times.

Global Gender Gap Index

About Global Gender Gap Index
� It evaluated gender parity among four main dimensions: Economic Participation and Opportunity,
Educational Attainment, Health and Survival, and Political Empowerment.
� Key Findings of 2024 Report
⚪ The global gender gap score for all 146 countries in this edition is 68.5%.
⚪ Top-Ranking Countries: Iceland, Norway, Finland, and Sweden.
⚪ India is ranked 129 in this year’s index, reflecting a slight regression compared to the previous
edition.
⚪ India ranks the third-lowest among South Asian economies, performing worse than
Bangladesh, Nepal, Sri Lanka, and Bhutan.

Economy 38
Why in News?
� Recently the World Economic Forum released its Global Gender Gap Index India slipped two
places to 129th place, while Iceland retained its top position.

Probable MCQs
1. Consider the following statements regarding the Global Gender Gap Index 2024:
1. The Global Gender Gap Index is published annually by the International Monetary Fund.
2. The Index measures gender-based gaps in four key areas including Economic Participation
and Opportunity, Educational Attainment, Health and Survival, and Women Empowerment.
3. The Global Gender Gap Index 2024 shows that no country has yet achieved full gender
parity.
Which of the statements given above is/are incorrect?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
Answer: (a)

2. Consider the following statements regarding digital payments in India:

1. Digital payments are primarily governed under the Payment and Settlement Systems Act,
2007.
2. The National Payments Corporation of India is the primary regulator responsible for
addressing customer complaints related to digital payment services.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

3. Solid Waste Management (SWM) Cess in India is levied by:

(a) Gram Panchayats
(b) Urban Local Bodies
(c) State Pollution Control Boards
(d) Registered Resident Welfare Associations
Ans: (b)

4. Consider the following statements regarding Quality Control Orders and the Bureau of Indian
Standards:
1. Quality Control Orders are issued by the Bureau of Indian Standards to ensure the quality
and safety of products sold in India.
2. The Bureau of Indian Standards operates under the Ministry of Consumer Affairs, Food and
Public Distribution.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only

Economy 39
 (c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

5. Consider the following statements regarding Economic Decoupling:

1. Economic decoupling refers to the process where countries reduce their economic
interdependence and trade with each other.
2. Economic decoupling leads to increased economic growth for countries that have a high
manufacturing base.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

Economy 40
2 Economy

Money, Banking, Finance & Insurance

RBI joined ‘Project Nexus’ to enhance cross-border payments

About Project Nexus:
y Developed by the Bank for
International Settlements (BIS)
Innovation Hub, the initiative aims to
enhance cross-border payments by
connecting global domestic instant
payment systems (IPS).
⚪ 1930: Established as an
international financial institution
that serves as a bank for central
banks.
⚪ Headquarter: Basel, Switzerland.
y Partners: Reserve Bank of India
(RBI), Bank for International
Settlements (BIS), and Central banks
of four ASEAN countries (Malaysia,
Philippines, Singapore and Thailand).

Why in News?
y RBI has joined Project Nexus, a multilateral international initiative to enable instant cross-
border retail payments by interlinking domestic Fast Payments Systems (FPSs).

Financial Inclusion-Index by RBI, improved to over 64%

Economy 35
Financial Inclusion:
Financial inclusion refers to efforts to make financial products and services accessible and
affordable to all individuals and businesses, regardless of their personal net worth or company size.

Why in News?
y Recently, the Reserve Bank of India (RBI) reported that the Financial Inclusion Index (F-Index)
rose from 60.1 in March 2023 to 64.2 in March 2024.

Digital Bharat Nidhi

About Digital Bharat Nidhi (DBN):

y Nodal Agnecy: Department of Telecommunications (DoT).
y Aim: Enhance internet connectivity in underserved areas, focusing on women and people with
disabilities.
y Funding: Contributions from telecom companies to the Digital Bharat Nidhi will first go to the
Consolidated Fund of India (CFI) before being transferred to the DBN.
About Universal Service Obligation Fund (USOF):
y 2003: Established to enhance telecom services in less financially viable regions.
y It was funded by a 5% levy on telecom operators adjusted gross revenue (AGR).

Why in News?
y The Department of Telecommunications (DoT) released draft rules for the Digital Bharat Nidhi
(DBN), which will replace the Universal Service Obligation Fund (USOF).

India’s Foreign Currency Assets (FCA)

About India’s Foreign Currency Assets (FCA):
y India’s Foreign Exchange Reserves include Foreign Currency Assets, Gold, SDRs, and the RBI’s
position with the IMF.
y Foreign currency assets include investments in US Treasury bonds, other government bonds,
deposits with foreign central banks, and foreign commercial banks.
y Composition of FCA:
⚪ As of March 2024, out of the total FCA of $570.95 billion.
⚪ A portion of the reserves is managed by external asset managers for diversification, governed
by the RBI Act, 1934.

Why in News?
y India’s foreign currency assets (FCA) return has doubled in two years, reaching $468.98 billion.

Economy 36
Budget, Taxation & GST

Finance Commission
About Finance Commission:
Establishment Under the Article 280 of the Indian Constitution
Recommend the distribution of the net proceeds of taxes between the
Function
Centre and the States, and among the States themselves.

Formation Formed every five years by the President or earlier if necessary.

y Vertical Devolution: States’ share of Central taxes

Fiscal Areas Addressed
y Horizontal Distribution: Resource distribution among States
Composition Chairman, Four members, appointed by the President
Tenure Determined by the President’s order

Reappointment Members, including the Chairman, are eligible for reappointment

y Chairman: Experience in public affairs

y Four Members:
⚪ High Court judge or eligible for the position
Qualifications
⚪ Expert in government accounting and finance
⚪ Extensive background in finance and administrative work
⚪ Expert in economics

About 16th Finance Commission:

y Chairman: Arvind Panagariya.
y The Commission has been asked to release its recommendations by October 31, 2025, for a
five-year period that starts on April 1, 2026.

Why in the News?

The 16th Finance Commission is reviewing the fiscal health and funding needs of Urban Local
Bodies, highlighting the need for better intergovernmental transfers and strong financial support.

Tax on Mineral-Rich Land

What Was the Case Earlier?
The dispute involved the nature of royalties paid by
mining lease holders to States, and whether these
royalties were considered taxes or contractual
considerations.

Recent Case:
y The Supreme Court ruled that royalties paid
by mining lease holders are contractual
considerations, not taxes. The Court affirmed that
Article 246 and Entry 49 of the State List grant

Economy 37
 States the power to tax mineral-bearing lands.

Argument in Favor Arguments in Against

The Supreme Court’s decision supports The Court rejected the argument that Entry 50 of the
the view that mineral-bearing lands fall State List permitted Parliament to limit State taxation
under State taxation powers according powers through laws such as the Mines and Minerals
to Article 246 and Entry 49 of the State (Development and Regulation) Act, 1957.
List.
It also clarified that Parliament’s residuary powers do
not extend to taxing mineral rights, emphasizing the
distinct roles of Entries 49 and 50 in List II of the
Constitution.

Framework for Mineral Taxation in India:

y Seventh Schedule: Entry 23 of List II (State List) gives states the power to regulate mines and
mineral development, subject to federal laws.
⚪ However, Entry 54 of List I (Union List) gives the Centre control over the regulation of
mines and mineral development in the national interest.
y Article 246: This article distributes legislative powers between the Centre and states,
following the Seventh Schedule. It’s crucial in determining the extent of state powers in
mineral taxation.
y Mines and Minerals (Development and Regulation) Act, 1957: A central law that regulates
mining activities across India, potentially limiting state powers.

Why in News?
SC ruled that states possess the legislative authority to impose taxes on lands bearing mines and
minerals under the Constitution. The verdict, delivered by a nine-judge Constitution bench, saw a
majority decision of 8:1.

Customs Duty Exemptions on Targeted Cancer Drugs

Economy 38
Why in News?
y In the Budget 2024-25, the Finance Minister of India announced customs duty exemptions on
three cancer drugs: trastuzumab deruxtecan, osimertinib, and durvalumab.
y Targeted Cancer Drugs:
⚪ Purpose: Designed to attack only cancer cells, sparing normal cells.
⚪ Mechanism: Target specific genetic changes in cancer cells that promote growth and spread.
y How These Drugs Work:
⚪ Trastuzumab Deruxtecan: Targets HER-2 receptor in breast and gastrointestinal cancers.
⚪ Osimertinib: Treats lung cancers with EGFR mutations.
⚪ Durvalumab: Used for lung, biliary tract, bladder, and liver cancers.

Government Initiatives Related to Cancer Treatment:

y National Cancer Grid (2012): Standardizes cancer care across India through a network of
centers for research and best practices.
y National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular
Diseases, and Stroke (2010): Enhances infrastructure, resources, and early diagnosis for
these diseases.
y HPV Vaccine: Prevents certain human papillomavirus infections.
y National Cancer Awareness Day (Nov 7): Focuses on early cancer detection and treatment.

Balance of Payment & International Trade

Foreign Exchange Management Act (FEMA), 1999

About the New Regulations:
y Every exporter must provide a declaration to the relevant authority stating the total export
value of the goods or services.
y Advance payments for importing gold and silver are not allowed unless approved by the Reserve
Bank of India.

About Foreign Exchange Management Act (FEMA), 1999:

y 2000: FEMA replaced Foreign Exchange Regulation Act (FERA), 1973.
y Aim: To facilitate external trade, payments, and manage the foreign exchange market.
y The Enforcement Directorate, responsible for administering FEMA, is headquartered in Delhi.
y FEMA applies across India and to Indian-managed agencies abroad.

Why in News?
The RBI has proposed new regulations under Foreign Exchange Management Act (FEMA), 1999, to
simplify export-import transactions and improve banking services for foreign exchange customers.

Integrated partnership Of OECD and GPAI

About Global Partnership on Artificial Intelligence (GPAI):
y 2020: launched as an International initiative.
y Aim: To guide the responsible development and use of artificial intelligence in a manner that

Economy 39
 respects human rights and the shared democratic values of its members.
y Membership: GPAI is a congregation of 25 member countries.
⚪ India became a founder member of the organisation in 2020.
y Presidency: Rotates among member countries, India held the presidency in 2023.
y Four Themes (Working Groups): Responsible AI, Data Governance, Future of Work and Innovation
and Commercialization.
y ‘Delhi Declaration’ adopted in the GPAI Summit, 2023: It recognizes the necessity of taking
advantage of AI’s opportunities and lowering its risks.
About the Organisation for Economic Co-operation and Development (OECD):
y 1961: Established as an intergovernmental economic organization
y Aim: To promote global economic progress and trade.
y It consists of 38 countries.
y Headquartered in Paris, France.
⚪ India, though not a member, is a significant economic partner.
y Publications of OECD:
⚪ Government at a Glance
⚪ OECD Better Life Index

Why in News?
Recently, the Global Partnership on Artificial Intelligence (GPAI) announced an integrated partnership
with the Organisation for Economic Co-operation and Development (OECD).

India, Russia to boost bilateral trade to 100 billion dollars by 2030

Why in News?
India and Russia committed to boosting trade to $100 billion by 2030, using national currencies to
bypass Western sanctions, during their 22nd Annual Summit.

Key Highlights of the Summit

y Russia agreed to expedite the discharge of Indians recruited by the Russian military deceitfully.
y India will open two new Indian consulates in Kazan and Yekaterinburg to serve the growing
Indian community in Russia.
Impact of Trading with National Currencies
y This strategy is employed by countries to reduce their dependence on the US dollar and other
major Western currencies in international trade and financial transactions.
y Impacts:
⚪ Promotes de-dollarization in global trade.
⚪ Enhances economic sovereignty.
⚪ Fosters new financial infrastructure (e.g., China’s CIPS (Cross-border Interbank Payment
System), Russia’s SPFS (System for Transfer of Financial Messages).
y Need for India:
⚪ Since the Ukraine war in 2022, Russia has emerged as India’s primary oil supplier, resulting
in a $57 billion trade deficit within a $66 billion bilateral trade volume for FY24.

Economy 40
 ⚪ Concurrently, China has leveraged export opportunities in Russia, with exports exceeding
$100 billion and imports rising to $129 billion in 2023, facilitated by trade in national
currencies. This situation poses a challenge for Indian exports, known as the Yuan
Challenge.
y Challenges:
⚪ Rupee Volatility: Fluctuations in the rupee complicate trade settlements and hinder its
use as an international currency.
⚪ Geopolitical Tensions with China: Ongoing border issues make the yuan a less favorable
option for trade settlements compared to the rupee.
y What Can Be Done to Overcome Yuan Challenge:
⚪ Expanding Export Opportunities: Increase Indian exports to Russia to balance trade and
enhance the use of the rupee.
⚪ Strengthening Rupee Settlement Mechanism: Improve and streamline the rupee
settlement system to facilitate smoother transactions.

US Economy No Longer Overheated

Why in News?
Recently, Federal Bank indicated that the United States is no longer experiencing an overheated
economy. The job market has cooled considerably from its pandemic-era extremes and has
returned to conditions before the pandemic.

Overheated Economy Cooling of Job Market

An overheated economy is expanding at an A cooling job market refers to a slowdown in

unsustainable rate. It is characterized by: job creation and hiring, often following a period
y Rapid economic growth of robust growth. It characterized by:
y High inflation y Slowing job growth rates
y Low unemployment (often below the y Potential increase in unemployment
natural rate) y Fewer job openings
y Rising wages y Slower wage growth

Behind Russia’s High Income

More about News:
y The ranking was boosted by growth in trade (+6.8%), the financial sector (+8.7%), and
construction (+6.6%), which led to increases in both the real (3.6%) and nominal (10.9%) GDP.

About Upper Middle Income and High Income criteria:

y According to the World Bank, For the current 2024 fiscal year, upper middle-income economies
are those with a Gross National Income (GNI) per capita between $4,466 and $13,845; high-
income economies are those with a GNI per capita of $13,846 or more.
y According to the World Bank, India falls under Lower-Middle-Income Economies, with a GNI
per capita between $1,146 and $4,515.

Economy 41
Why in News?
The World Bank has upgraded Russia from an ‘upper-middle income’ country to a ‘high-income’
one, a status it last had in 2014.

Sectors of the Economy, GDP, Inflation

Producer Price Index (PPI)

Comparison between Wholesale Price Index (WPI) Producer Price Index (PPI):

Feature Wholesale Price Index (WPI) Producer Price Index (PPI)

Measures the average change in Measures the average change in prices

prices of goods at the wholesale received by domestic producers for
Definition
level, i.e., before they reach the their output, covering goods and
retail market. services.

Primarily includes goods, excluding Includes both goods and services

Scope
services. produced by domestic industries.
Captures inflation from the producer’s
Captures inflation at the wholesale
Inflation perspective, offering a more
level, often used for industrial
Measurement comprehensive view of inflationary
inflation.
pressures.

PPI to replace WPI?

y 1970s: many 1st world nations adopted PPI
y 2017: Indian commerce ministry set up a committee under economist B N Golder.
y 2024: Considerations for WPI to be replaced with PPI.

WPI limitations:
y Services not counted
y Double counting / input-output
y Import-export not counted.

Economy 42
Why in News?
y The Department for Promotion of Industry and Internal Trade (DPIIT) said that it has finalised a
new model for the Producer Price Index (PPI) to efficiently capture input prices in the economy.

Green Revolution in Maize

About Maize Production
Growth:
y India’s yearly production
more than tripled from 11.5
million tonnes (mt) to over
35 mt between 1999–2000
and 2023–2024.

Multiple Uses for Maize:

y Due to its high starch content,
14–15% of maize is used
industrially for products like
paper, textiles, food, drinks,
and medications, in addition
to food and feed.
y Recently, maize has been
used as a feedstock
for ethanol production,
especially in the off-season
for sugarcane.

New Developments in Maize Types:

y The Indian Agricultural Research Institute (IARI) has developed India’s first “waxy” maize hybrid
with a starch recovery rate of 68–70%, higher than the 58–62% of regular maize, making it ideal
for ethanol production.
y Field trials conducted by IARI in collaboration with the UP Distillers’ Association show notable
progress in maize breeding.
About Indian Agricultural Research Institute (IARI):
y 1905: Established by the Government of India for research, higher education, and training in
agricultural sciences.
y Autonomous body attached to the Indian Council of Agriculture (ICAR), Ministry of Agriculture
and Farmer Welfare.
y Headquarter: New Delhi.

Why in News?
India’s green revolution in maize, largely driven by the private sector, has resulted in a more than
tripled increase in maize production over the past 20 years.

Economy 43
Modified Interest Subvention Scheme (MISS)
About Modified Interest Subvention Scheme (MISS):
y The Kisan Credit Card program was created to enable farmers to make credit purchases of
agricultural goods and services whenever they choose.
y To ensure farmers pay minimal interest rates, the Government introduced the Interest
Subvention Scheme (ISS), now renamed as the Modified Interest Subvention Scheme (MISS).
y Implemented Agency: Ministry of Agriculture and Farmers’ Welfare in collaboration with the
banking sector.
y Eligible Lending Institutions: Financial institutions such as Public Sector Banks, Private Sector
Banks, Small Finance Banks, Regional Rural Banks, Cooperative Banks.
Features:
y Offers short-term agricultural loans up to Rs. 3 lakh at a subsidized interest rate of 7% per
year.
y A 3% additional interest subvention is provided as a Prompt Repayment Incentive (PRI) for
timely loan repayment.

Why in News?
The Centre is considering raising the upper limit for short-term crop loans under the Modified
Interest Subvention Scheme (MISS) from ₹3 lakh to ₹5 lakh.

Genetically Modified (GM) mustard

About Genetically Modified (GM)
mustard:
y Dhara Mustard Hybrid-11 (DMH-
11) is an indigenously developed,
genetically modified mustard that
is tolerant to herbicides.
y The hybrid between the Indian
mustard variety Varuna and the
East European mustard variant
Early Heera-2 produced DMH-11.
⚪ DMH-11 includes two genes
from the bacterium Bacillus
amyloliquefaciens that
enhance the production of
high-yielding mustard hybrids.
⚪ DMH-11, approved by GEAC,
yields 28% more than national
varieties and 37% more than zonal varieties.
About Genetic Engineering Appraisal Committee (GEAC):
y It is constituted under the Environment (Protection) Act, 1986, and operates under the Ministry
of Environment, Forest, and Climate Change.

Economy 44
 y Functions:
⚪ The committee approves the large-scale use of hazardous microorganisms and genetically
engineered organisms in research and industry, including field trials, with mandatory
clearance required for the environmental release of GM crops.

Why in News?
Recently the Supreme Court of India delivered a split verdict (1:1) on whether to allow the
“environmental release” of Genetically Modified (GM) mustard. At present Bt Cotton remains the
only GM crop approved for commercial cultivation in India.

Minimum Support Price (MSP) for Bihar Makhana

About Makhana:
y Makhanas are also known as fox nuts, Euryale ferox, lotus seeds, gorgon nuts, and phool
makhana.
y It is an aquatic crop from the Nympheaceae family.
y This commercially grown plant is commonly found in stagnant water bodies such as ponds,
swamps, oxbow lakes, ditches, and low-lying areas.
y It thrives naturally in warm, tropical, and subtropical climates & harvesting usually occurs
during the summer months.

Why in News?
The Bihar government has asked the Centre to set a Minimum Support Price (MSP) for Makhana.

New Agriculture Market Order (NAMO) Drone Didi scheme

About Namo Drone Didi
Scheme:
y 2024: Launched by the
Ministry of Agriculture
and Farmers Welfare.
y Aim: To empower
women in agriculture by
training them to operate
drones for agricultural
purposes, particularly
for spraying fertilizers
and pesticides.
y Beneficiaries: The
scheme aims to train
15,000 women as drone pilots.

National Mission on Natural farming:

y It promotes sustainable agricultural practices, reduces dependency on chemical inputs, and
enhances soil health and farmer income.
y Nodal Agency: Ministry of Agriculture and Farmers’ Welfare.

Economy 45
y The Paramparagat Krishi Vikas Yojana (PKVY) in India promotes natural farming through the
Bhartiya Prakritik Krishi Paddhati Programme (BPKP).

Why in News?
Recently, the Union government has allocated Rs. 500 crore for the NAMO Drone Didi scheme, and
also announced support to one crore farmers under the Natural farming mission.

Digital Public Infrastructure (DPI)

About Digital Public Infrastructure (DPI):
y It refers to the fundamental
digital platforms and
infrastructure to help
citizens get digital services.
y G20 Task Force Report:
established in January 2023
to oversee and facilitate
achieving India’s G20
Presidency agenda and
priorities on Digital Public
Infrastructure (DPI) and
Financial Inclusion.
y Highlights of the Report:
⚪ Proposes a multinational
body to support DPI
development, focusing
on the Global South.
⚪ Highlights how Aadhaar
ID and UPI enhance
citizen services, governance, and economic efficiency.
About G-20:
y 1999: Established by the G7 countries and other emerging economies in response to the
financial crises of the late 1990s.
y It is a multinational forum made up of the European Union, 19 other countries, and central
bank governors.
y Aim: To address global economic issues, promote financial stability, and foster sustainable
and inclusive growth.
y 2022: India’s presidency to G20 New Delhi Summit.
y Member Nations:Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia,
Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United
Kingdom and United States and the European Union.

Why in News?
y India’s G20 Task Force on Digital Public Infrastructure has released its final report, highlighting
strategies for economic transformation, financial inclusion, and development.

Economy 46
Pradhan Mantri Gram Sadak Yojana (PMGSY)
About Pradhan Mantri Gram Sadak Yojana (PMGSY):
y 2000: Launched and implemented by the Ministry of Rural Development.
y Objective: To provide connectivity between unconnected habitations by an all-weather road.
y Eligibility:
⚪ Plain Areas: Habitats with a population above 250.
⚪ Special Category States: Habitats with a population above 100.
y It is a Centrally Sponsored Scheme. The Union Government covers 90% of project costs in
North-Eastern and Himalayan states, and 60% in other states.

Why in News?
The Union government plans to launch the fourth phase of the Pradhan Mantri Gram Sadak Yojana
(PMGSY).

Hybrid Electric Vehicles (HEVs)

About Electric Vehicle (EVs):
y An Electric Vehicle (EV) is powered by an electric motor, draws electricity from a battery, and
can be charged from an external source.
y Types of Electric Vehicle:
⚪ Battery Electric Vehicle (BEV): These fully electric vehicles are more efficient than hybrid
and plug-in hybrid models.
⚪ Hybrid Electric Vehicle (HEV): Also called a Strong Hybrid EV, this vehicle uses both a petrol
engine and a battery-powered motor.
⚪ Fuel Cell Electric Vehicle (FCEV): It converts chemical energy to electric energy, as in a
hydrogen FCEV.
⚪ Plug-in Hybrid Electric Vehicle (PHEV): These use a combustion engine and a battery that
can be charged externally (plug-in).

Why in News?
Recently, the Uttar Pradesh state government announced the waiver of registration fees for strong
hybrid and plug-in hybrid electric vehicles (EVs).

Visakhapatnam has initiated the injection borewell method to recharge their borewell
About Injection Borewell:
y These borewells offer a smart
solution for addressing water
scarcity by directing rainwater into
deeper underground layers.
y They effectively recharge
groundwater by harnessing
rainwater and channeling it into
deep earth reservoirs.

Economy 47
Working:
y Rainwater Capture: Injection borewells gather rainwater from expansive open spaces, rooftops,
and various other surfaces.
y Unique Technology: These borewells utilize an innovative filtration and purification system to
recharge aquifers with clean rainwater.
y Deep Recharge: The collected water is injected into underground layers, effectively replenishing
and sustaining the groundwater levels.

Why in News?
Residents of Visakhapatnam have initiated the injection borewell method to recharge their
borewell.

Declaration of Product Details

About Legal Metrology (Packaged Commodities) Rules, 2011:
y Notified under the Legal Metrology Act, 2009 by the Ministry of Consumer Affairs, Food and
Public Distribution.
y It ensures setting uniform standards, ensuring accuracy in measurements.
y Earlier Amendment:
⚪ 2022: Electronic products should declare certain mandatory declarations through the QR
(Quick Response) Code for one year, if not declared in the package itself.
y Other Regulations related to Packaging:
A packaged commodity, as defined under the Legal Metrology (Packaged Commodities) Rules, 2011
is a product that is packaged in any manner before being offered for sale.

Rules Deals with

y Food product packaging and labeling.

Food Safety and Standards (Packaging and
y Nutritional info, allergen warnings, Veg/Non-
Labelling) Regulations, 2011
veg logos.
y Drug and cosmetic packaging/labeling,
Drugs and Cosmetics Rules, 1945 (with
Ingredient info, usage instructions, expiry
Amendments)
dates
y Broad consumer rights framework, Provisions
Consumer Protection Act, 2019
against misleading ads and packaging

Why in News?
The Department of Consumer Affairs seeks to amend the Legal Metrology (Packaged Commodities)
Rules, 2011 to ensure mandatory declaration of all information on pre-packaged commodities used
for retail sale.

Economy 48
Ethanol used in petrol now comes more from maize
About Ethanol:
y Ethanol, also known as ethyl alcohol, is a clear, colorless liquid with a wine-like odor and
pungent taste.
y Derived from sources like sugarcane, corn, rice, wheat, and biomass, it is fully soluble in water
and most organic solvents.
y Molasses, a byproduct of sugar production, is a key source for making ethanol and rectified
spirit.

About Biofuel:
y It is a type of renewable energy derived from organic materials, such as plants or animal
waste.
y It is used as an alternative to fossil fuels and can be in the form of liquids, gases, or solids.
The Biofuel Policy of India:
y The Central government revised the Biofuel Policy (2018) to aim for 20% ethanol and 5%
biodiesel blending by 2025.

Recent Developments in Ethanol Production:

y During the current supply year (November 2023 – October 2024), sugar mills and distilleries
supplied 401 crore litres of ethanol to oil marketing companies up to June 30.

Why in News?
India has recently surpassed ethanol production from sugar-based feedstock by achieving higher
yields from grains, especially maize.

Upper Siang Project

About Upper Siang Project:
y The Upper Siang project is an 11,000 MW hydro project by NHPC on the Siang River in Arunachal
Pradesh, featuring the subcontinent’s largest dam at 300 meters.

Economy 49
 About Siang River:
y It originates in Tibet, where it is known as the Yarlung Tsangpo.
y It enters India in Arunachal Pradesh through the Great Bend.
y The Siang flows 294 km through Arunachal Pradesh before entering Assam as the Brahmaputra.

Why in News?
The Arunachal Pradesh Police citing reports claimed that activists protesting against proposed
Upper Siang Multipurpose Storage Project, might cause public disorder.

Human Resource Development, Health and Education

NITI Aayog’s SDG India Index

Aspect Details

Initiative SDG India Index by NITI Aayog (Annual Report)

Measure progress of Indian states and union territories toward achieving
Aim
the 17 SDGs established by the United Nations in 2015
Evaluation Progress across 16 goals evaluated on a scale of 1 to 100
y Achiever (100)
Classification y Front Runner (65-99)
Categories y Performer (50-64)
y Aspirant (0-49)
y India’s SDG score improved to 71 points in 2023-24 from 66 points in
2022-2023
y Top Performers: Kerala and Uttarakhand
Findings of SDG
y Lowest Performer: Bihar and Jharkhand
India Index 2023-24
y Front-Runner States: 32 states and union territories (UTs) are in
the front-runner category, with 10 new entrants including Arunachal
Pradesh, Assam, Chhattisgarh, and Uttar Pradesh.

Economy 50
About NITI (National Institution for Transforming India) Aayog:
y 2015: established as a policy think tank of the Government of India, replaced the Planning
Commission (1950).
y Objectives: Policy Formulation, Cooperative Federalism, Innovation and Research and Monitoring
and Evaluation.
y Chairperson: Prime Minister of India.

Economy 51
y Governing council: It includes Chief Ministers of all states and Union territories with legislatures
and Lt. Governors of other Union territories. It also has a Vice-Chairperson, a Chief Executive
Officer (CEO), and full-time as well as part-time members.
y Major Initiatives: Aspirational Districts Programme, Atal Innovation Mission (AIM), Health Index,
SDG India Index.

Why in News?
Recently NITI Aayog released its SDG India Index for 2023-24.

Revamped NCERT Class 6 English Textbook

About the Revamped Textbooks:
y It includes nine Indian-themed prose pieces and five non-Indian poems.
y Changes align with NEP (National Education Policy) 2020, emphasizing Indian context and ethos.
NCERT (National Council of Educational Research and Training):
y 1961: Founded as an autonomous organization under the Ministry of Education.
y It develops and publishes school textbooks and conducts educational research

National Curriculum Framework (NCF) 2023:

y It is part of the implementation of the (NEP) 2020
y It Replaces the previous NCF from 2005
y Covers four stages: Foundational, Preparatory, Middle, and Secondary.

Why in News?
The new Class 6 English textbook, titled Poorvi, developed by NCERT under the National Curriculum
Framework (NCF) 2023, incorporates chapters rooted in Indian culture, tradition, and ancient
knowledge.

Model Skill Loan Scheme

Aspect Details

Scheme Launch 2015

Provides institutional credit for skill development courses aligned with
Purpose
National Occupational Standards and Qualification Packs.
Increased from Rs 1.5 lakh to Rs 7.5 lakh to address low uptake due to
Loan Limit
insufficient limits.
Conducted by institutes following the National Skill Qualification Framework
Courses
(NSQF), leading to certifications, diplomas, or degrees.
Applies to all Indian Banks’ Association (IBA) member banks and other banks
Applicability
as advised by the RBI.
Indian nationals admitted to ITIs, polytechnics, recognized schools, affiliated
Eligibility colleges, NSDC training partners, Sector Skill Councils, State Skill Missions,
or State Skill Corporations.

Economy 52
Why in News?
The government has introduced a revamped ‘Model skill loan scheme’ to improve access to skill
development courses, featuring a substantially higher maximum loan limit.

On Govt table: CBSE’s second board exam for Class 12

About National Curriculum Framework for School Education (NCFSE):
y It is a policy framework developed by the National Council of Educational Research and Training
(NCERT) to guide curriculum development and educational practices in schools.
y It provides guidelines for:
⚪ Curriculum Design: Outlining objectives and content for various subjects and grade levels.
⚪ Pedagogical Approaches: Recommending effective teaching methods and learning strategies.
⚪ Assessment: Suggesting ways to evaluate student progress and performance.
⚪ Inclusivity: Ensuring the curriculum addresses diverse learning needs and backgrounds.
⚪ Holistic Development: Promoting overall student development, including cognitive,
emotional, and social growth.

Why in News?
y The Government is planning a second CBSE Class 12 exam in June 2026, as recommended by
the National Curriculum Framework for School Education (NCFSE).

New NCERT report card for senior classes

About Holistic Progress Card (HPC):
y NEP 2020 recommends preparation of HPC to provide a 360 degree, multidimensional report of
progress, that reflects in detail the progress as well as the uniqueness of each learner in the
cognitive, affective, socio-emotional, and psychomotor domains.
y It is developed by PARAKH (Performance Assessment, Review, and Analysis of Knowledge for
Holistic Development), a standard-setting body under the NCERT.
y Methodology: Continuous and Comprehensive Evaluation (CCE), Formative and Summative
Assessments and Feedback Mechanism.

Why in News?
A new ‘Holistic Progress Card (HPC)’ developed by PARAKH, recently released for secondary school
students (Classes 9 to 12).

Ladki Bahin Yojana in Maharashtra

About Mukhyamantri Majhi Ladki Bahin yojana:
y The scheme aims to offer financial assistance to economically disadvantaged women in the
state, providing ₹1,500 per month to women aged 21-65 with an annual income below ₹2.5 lakh.
y Recent Development:
⚪ A petition was filed in the Bombay High Court challenging the ‘Ladki Bahin Yojana’. The
petitioner argued that the scheme is just a political move; it constitutes a misuse of taxpayer
funds and would significantly burden the state treasury.

Economy 53
Why in News?
Maharashtra government announced Mukhyamantri Majhi Ladki Bahin yojana for women in the 21
to 65 age group, on lines of Madhya Pradesh’s Ladli Bahin Scheme.

PM-SHRI Scheme

About Pradhan Mantri School for Rising India (PM-SHRI):

y 2022: announced as a Centrally Sponsored scheme initiated by the Ministry of Education.
y Objective: To establish over 14,500 PM SHRI Schools, overseen by the Central Government, State/
UT Governments, local bodies, as well as Kendriya Vidyalaya Sangathan (KVS) and Navodaya
Vidyalaya Samiti (NVS).
y The scheme runs from 2022-23 to 2026-27, after which States/UTs will maintain the benchmarks
achieved by these schools.
About Samagra Shiksha Abhiyan (SSA):
y 2018: launched with aim to ensure that many Indian children receive an equitable, inclusive,
and affordable education.
y Three projects are included in the Samagra Shiksha Scheme: the Teacher Education Program,
the Rashtriya, Madhyamik Shiksha Abhiyan and Sarva Shiksha Abhiyan.

Why in News?
y The Education Ministry has halted funds under the Samagra Shiksha Abhiyan (SSA) to Delhi,
Punjab, and West Bengal due to their reluctance to participate in the Pradhan Mantri Schools
for Rising India (PM-SHRI) Scheme.

Economy 54
Karnataka’s Naavu Manujaru programme to improve Social Harmony
About Naavu Manujaru:
y It was introduced in the Karnataka State Budget for the financial year 2024-25.
y It includes two hours per week of discussions on social harmony and Constitutional values in
schools statewide.

Why in News?
The Government of Karnataka is set to launch the Naavu Manujaru program in schools to promote
social harmony and instill Constitutional values among students.

Interim Budget FY 2024

y The Interim Budget for FY 2024 was
presented to manage government finances
and ensure continuity until the full budget
for the fiscal year could be enacted, ahead
of general elections.
y The government seeks a “Vote on Account”
from Parliament under Article 266 of the
Indian Constitution, which allows it to meet
expenses for a part of the year (usually 2-4
months).

Union Budget 2024-25

y Article 112 of the Indian Constitution mandates the presentation of the Annual Financial
Statement, commonly known as the Union Budget, before both Houses of Parliament.
y Presented annually by the Finance Minister, it reflects the economic strategies and fiscal
discipline of the government.
y A budget is a financial plan that outlines the expected revenues and expenditures of a
government, organization, or individual over a specific period, usually a year.

Some of the primary documents presented include:

Document Description

Annual Financial The core budget document that outlines the government’s receipts
Statement (AFS) and expenditures for the upcoming fiscal year.

Details legal changes required for implementing the government’s

Finance Bill
tax proposals.

Authorizes government expenditure from the Consolidated Fund of

Appropriation Bill
India, specifying allocations for ministries and departments.

Economy 55
 Contains expenditure estimates for each ministry/department,
Demand for Grants
requiring Parliament’s approval for funds.

Fiscal Policy Strategy Outlines the government’s long-term financial strategy, focusing on
Statement fiscal and revenue deficits, and debt management.

Medium Term Fiscal Sets three-year fiscal targets, providing a medium-term perspective
Policy Statement on budgetary goals.

Macro-Economic Offers an overview of the economic outlook, including GDP growth,

Framework Statement inflation, and external sector conditions.

Note: The Indian Union Budget, traditionally presented on the last working day of February, was
advanced to February 1 in 2017 to streamline the budget process before the financial year begins,
enhancing allocation efficiency and reducing the need for a Vote on Account.

Economy 56
Budget Estimates 2024-25:

Fiscal Deficit:
y The fiscal deficit is 4.9% of GDP, with a target to reduce it below 4.5% next year. It reflects the
gap between the government’s revenue and expenditure.
y Fiscal Deficit = Total Expenditure - Total Revenue (excluding borrowings)

y Inflation continues to be low, stable and moving towards the 4% target; Core inflation (non-
food, non-fuel) at 3.1%.
y The focus of budget is on EMPLOYMENT, SKILLING, MSMEs, and the MIDDLE CLASS.

Economy 57
 TAX PROPOSALS

Economy 58
Sector Specific Customs Duty Proposals:
y Comprehensive review of the rate structure for ease of trade, removal of duty inversion and
reduction of disputes.

Direct Tax Proposals:

y To reduce the compliance burden, promote entrepreneurial spirit and provide tax relief to
citizens.

Rationalisation of Capital gains:

y Short term gains of financial assets to attract 20% tax rate.
y Long term gains on all financial and non-financial assets to attract a tax rate of 12.5%.
y Increase in limit of exemption of capital gains on financial assets to ₹1.25 lakh per year.

Economy 59
Employment and Investment:
y Abolished ANGEL tax for all classes of investors.
y Simpler tax regime to operate domestic cruises.
y Provide safe harbour rates for foreign mining companies (Selling raw diamonds).
y Corporate tax rate on foreign companies was reduced from 40% to 35%.

Comparison between Old Tax Regime (OTR) and New Tax Regime (NTR):

y Standard Deduction for salaried employees increased from ₹50,000 to ₹75,000.

y Deduction on family pension for pensioners increased from ₹15,000 to ₹25,000.

Economy 60
 Nine Budget Priorities in pursuit of ‘Viksit Bharat’:
1. Productivity and resilience in Agriculture
2. Employment & Skilling
3. Inclusive Human Resource Development and Social Justice
4. Manufacturing & Services
5. Urban Development
6. Energy Security
7. Infrastructure
8. Innovation, Research & Development and
9. Next Generation Reforms

Priority 1: Productivity and resilience in Agriculture

Economy 61
y Allocation of ₹ 1.52 lakh crore for agriculture and allied sectors.
y 1 crore farmers across the country to be initiated into natural farming, with certification and
branding in next 2 years.
y 10,000 need-based bio-input resource centers to be established for natural farming.
y Digital Public Infrastructure (DPI) for Agriculture to be implemented for coverage of farmers and
their lands in 3 years.

Priority 2: Employment & Skilling

y As part of the Prime Minister’s package, 3 schemes for ‘Employment Linked Incentive’ to be
implemented - Scheme A - First Timers; Scheme B - Job Creation in manufacturing; Scheme
C - Support to employers.

y To facilitate higher participation of women in the workforce,

⚪ working women hostels and crèches to be established with industrial collaboration
⚪ women-specific skilling programmes to be organized
⚪ market access for women SHG enterprises to be promoted

Skill Development
y New centrally sponsored scheme for Skilling under Prime Minister’s Package for 20 lakh youth
over a 5-year period.
y Model Skill Loan Scheme to be revised to facilitate loans up to
₹ 7.5 lakh.
y Financial support for loans upto ₹ 10 lakh for higher education in domestic institutions to be
provided to youth who have not been eligible for any benefit under government schemes and
policies.

Economy 62
Priority 3: Inclusive Human Resource Development and Social Justice

Andhra Pradesh Reorganization Act:

y Special financial support through multilateral development agencies of ₹ 15,000 crore in the
current financial year.
y Industrial nodes at Kopparthy along Visakhapatnam-Chennai Industrial Corridor and at Orvakal
along Hyderabad-Bengaluru Industrial Corridor.

Priority 4: Manufacturing & Services

Economy 63
Enhanced scope for mandatory onboarding in TReDS
y Turnover threshold of buyers for mandatory onboarding on the TReDS platform to be reduced
from ₹ 500 crore to ₹250 crore.

E-Commerce Export Hubs

y E-Commerce Export Hubs to be set up under public-private-partnership (PPP) mode for MSMEs
and traditional artisans to sell their products in international markets.

Critical Mineral Mission

y Critical Mineral Mission to be set up for domestic production, recycling of critical minerals, and
overseas acquisition of critical mineral assets.

Offshore mining of minerals

y Auction of the first tranche of offshore blocks for mining, building on the exploration already
carried out.

Digital Public Infrastructure (DPI) Applications

y Development of DPI applications in the areas of credit, e-commerce, education, health, law and
justice, logistics, MSME, services delivery, and urban governance.

Internship Opportunities
y Scheme for providing internship opportunities in 500 top companies to 1 crore youth in 5 years.
y Allowance of ₹5,000 per month along with a one-time assistance of ₹6,000 through the CSR
funds.

Priority 5: Urban Development

Economy 64
Urban Housing

Priority 6: Energy Security

Energy Transition
y Policy document on ‘Energy Transition Pathways’ to balance the imperatives of employment,
growth and environmental sustainability to be brought out.

Economy 65
Advanced Ultra Super Critical Thermal Power Plants
y Joint venture proposed between NTPC and BHEL to set up a full scale 800 MW commercial
plant using Advanced Ultra Super Critical (AUSC) technology.

Roadmap for ‘hard to abate’ industries

y Appropriate regulations for transition of ‘hard to abate’ industries from the current ‘Perform,
Achieve and Trade’ mode to ‘Indian Carbon Market’ mode to be put in place.

Priority 7: Infrastructure

Irrigation and Flood Mitigation

y Financial support of ₹ 11,500 crore to projects such as the Kosi-Mechi intra-state link and other
schemes in Bihar.
y Government to provide assistance to Assam, Himachal Pradesh, Uttarakhand and Sikkim for
floods, landslides and other related projects.

Tourism
y Comprehensive development of Vishnupad Temple Corridor, Mahabodhi Temple Corridor and
Rajgir.
y Assistance for development of temples, monuments, craftsmanship, wildlife sanctuaries,
natural landscapes and pristine beaches of Odisha.

Priority 8: Innovation, Research & Development

Economy 66
Priority 9: Next Generation Reforms

Urban Land Related Actions: Land records in urban areas to be digitized with GIS mapping.

Services to Labour
y Integration of e-shram portal with other portals to facilitate such one-stop solution.
NPS-Vatsalya: As a plan for contribution by parents and guardians for minors.

Allocation to Major Schemes (in ₹ crore)

Economy 67
Economy 68
Key Schemes/Announcements from the Budget ( Classified on the basis of Mrunal Sir’s Six Pillars
of Economy):

Pillars Schemes/ Related Data

NPA:
y IBC has resolved more than 1,000 companies, resulting in
direct recovery of over 3.3 lakh crore to creditors,
y 28,000 cases involving over 10 lakh crore have been disposed
of, even prior to admission.
EPFO: DBT of one-month wage (upto ₹15,000) to all persons newly
entering the workforce in all formal sectors. The eligibility limit
will be a salary of ₹1 lakh per month. The scheme is expected to
benefit 210 lakh youth.
Pillar#1: Money, Banking, NPS-Vatsalya: Plan for contribution by parents and guardians for
Finance & Insurance minors.
Financial Inclusion: 100 branches of India Post Payment Bank to
be set up in the North East
Loans-MSME:
y Mudra loans will be enhanced to ₹20 lakh from the current
₹ 10 lakh for those entrepreneurs who have availed and
successfully repaid previous loans under the ‘Tarun’ category.
y More companies will be registered in the TReDS platform
(TREDS for short term loans to MSME against their unpaid
invoices).
Capital XPDR:
y Provided ₹ 11,11,111 crore for capital expenditure. This would be
Pillar#2: Budget, Taxation & 3.4 percent of our GDP.
GST y A provision of ₹ 1.5 lakh crore for long-term interest free
loans has been made to support the states in their resource
allocation.
FDI reforms:
y Facilitate foreign direct investments.
Pillar#3: Balance of Payment
y Nudge prioritization.
& International Trade
y Promote opportunities for using Indian Rupee as a currency
for overseas investments.
Agriculture:
y 1 crore farmers will be brought in natural farming supported
by certification and branding.
Pillar#4: Sectors of Economy,
y Setup bio-input resource centres
GDP, Inflation
y ‘Atmanirbharta’ for oil seeds such as mustard, groundnut,
sesame, soybean, and sunflower. Large scale clusters for
vegetable production setup near big cities.

Economy 69
 y Digital Public Infrastructure (DPI) and - digital crop survey for
Kharif
y 6 crore farmers and their lands will be brought into the farmer
and land registries
y Jan Samarth based Kisan Credit Cards will be issued in 5
states.
y 50 multi-product food irradiation units in the MSME sector
will be provided.
EoD Business:
y 12 industrial parks under the National Industrial Corridor
Development Programme will be sanctioned.
y Centre for Processing Accelerated Corporate Exit (C-PACE)
will be extended for voluntary closure of LLPs.
IPR: ₹1 lakh crore for Anusandhan National Research Fund.
Services: E-Commerce Export Hubs will be set up in public-
private-partnership (PPP) mode.
(Infrastructure & Energy related announcements covered above in
Nine priorities under Budget.)
Energy: PM Surya Ghar Muft Bijli Yojana - more than 1.28 crore
registrations and 14 lakh applications.
Nuclear energy:
y Setting up Bharat Small Reactors
Pillar#5: Infrastructure y Research & development of Bharat Small Modular Reactor
y Research & development of newer technologies for nuclear
energy.
Transport: Phase-4 of PMGSY (Gram Sadak Yojana) to 25,000
rural habitations.
Comm/IT: Space economy by 5 times in the next 10 years, a
venture capital fund of ₹ 1,000 crore.
PM’s Five Schemes for Employment and Skilling:
y Target: 4.1 crore youth over 5 years.
y Scheme A (First Timers): ₹15,000 in 3 installments to first-
time employees registered with EPFO.
y Scheme B (Job Creation in Manufacturing): Incentives for
both employee and employer towards EPFO contributions for
the first 4 years of employment.
Pillar#6: Human Resource y Scheme C (Employer Support): Government reimbursement
Development, Health and of up to ₹3,000/month for 2 years towards EPFO contributions
Education for each additional employee.
y Skilling Initiative: 20 lakh youth to be skilled; 1,000 Industrial
Training Institutes upgraded.
y Internship Scheme: 1 crore youth to intern in 500 top
companies over 5 years.
SC/ST Welfare: Pradhan Mantri Janjatiya Unnat Gram Abhiyan by
adopting saturation coverage for tribal families in tribal-majority
villages and aspirational districts.

Economy 70
Probable MCQs
1. With reference to ‘Project Nexus’, consider the following statements:
1. Project Nexus is conceptualised by the Innovation Hub of the Bank of International Settlement
(BIS).
2. It seeks to enhance cross-border payments by connecting multiple domestic instant
payment systems (IPS).
3. The State Bank of India has been collaborating bilaterally with various countries to link
India’s Fast Payments Systems (FPS).
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Ans: (b)

2. With reference to ‘NITI Aayog’s SDG India Index’, consider the following statements:
1. The index covers all 17 goals of the UN’s Sustainable Development Goals.
2. Andhra Pradesh and Kerala have taken the top spot among states in NITI Aayog’s SDG India
Index 2023-2024.
3. The States and UTs are classified under four categories based on their SDGs scores.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) Only three
(d) All Four
Ans: (a)

3. What is the main goal of the Pradhan Mantri Schools for Rising India, or PM-SHRI, program?
(a) To construct new school buildings in rural and urban areas.
(b) To provide free higher education to economically disadvantaged students.
(c) To upgrade existing schools to showcase all components of the National Education Policy
2000.
(d) To provide nutritional food to all government school students.
Ans: (c)

4. With reference to Wholesale Price Index (WPI), consider the following statements:
1. It measures the average change in prices of goods at the wholesale level.
2. It is published by the Office of the Economic Advisor, Department for Promotion of Industry
and Internal Trade, Ministry of Commerce and Industry.
3. The base year for the current WPI series is 2016-17.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) Only three
(d) None
Ans: (b)

Economy 71
 2 Economy

Money, Banking, Finance & Insurance

Cheque Truncation System

About Cheque
Truncation System
(CTS):
y Truncation: In
CTS, cheques are
scanned at the bank
branch, and digital
images are sent
electronically to
the clearinghouse
and paying bank,
eliminating physical
transportation.
y Verification: Key
cheque details
(MICR code, cheque
number, account, and amount) are captured and transmitted with the image, enabling the
paying bank to verify before processing.

Why in News?
Recently The Reserve Bank of India has announced the revamping of the current Cheque Truncation
System to clear cheques within a few hours which usually takes one to two days.

RBI to Launch Unified Lending Interface (ULI) to Revolutionize Credit Delivery

About Unified Lending Interface

(ULI):
y It is a platform designed to
address unmet credit demand,
particularly for agriculture and
MSMEs, by digitising access to
data like land records.
y Aim: To reduce the need for
extensive documentation from
borrowers.
y Functions:
⚪ ULI will enable a seamless,

34 Economy
 consent-based transfer of digital information, like land records, from data providers to
lenders.
⚪ By integrating financial and non-financial data, ULI will streamline credit appraisal and
speed up credit delivery, particularly benefiting smaller and rural borrowers who face delays
from extensive documentation.

Importance of ULI in Digital Infrastructure in India

y ULI is a major advancement in India’s digital infrastructure, complementing JAM (Jan Dhan,
Aadhaar, and Mobile) and UPI.
y The “new trinity” of JAM, UPI, and ULI is set to drive innovation in payments and credit,
marking a milestone in India’s digital infrastructure.

Why in News?
The RBI is set to launch the Unified Lending Interface (ULI) nationwide, aiming to transform
lending in India like UPI revolutionized retail payments.

RBI Increases UPI Transaction Limit for Tax Payments

Why in News?
Recently the Reserve Bank of India (RBI) announced to increase the transaction limit for tax
payments through the Unified Payments Interface (UPI).

More about the News:

y New Transaction Limit: The RBI has raised the UPI transaction limit for tax payments from Rs
1 lakh to Rs 5 lakh per transaction.
y It will accommodate regular and high-value tax payments, making the process easier for
consumers.

Budget, Taxation & GST

Removal of the Indexation Benefit from Tax Computation

Economy 35
About Indexation:
y It is a financial mechanism used to adjust the value of an asset, income, or economic measure
to account for inflation or other economic changes over time.

Purpose:
y To protect the purchasing power of money
y To maintain the real value of investments or payments
y To ensure fair taxation by adjusting for inflation
Long-Term capital gains (LTCG) Tax: It is a tax on the profit from the sale of capital assets held
long-term, including equity shares, equity-oriented mutual funds, debt funds, gold, and real
estate.

Recent Update: After facing criticism of removal of Indexation benefits the government now offers
taxpayers a choice: for properties acquired before July 23, 2024, they can either pay 20% LTCG tax
with indexation or 12.5% LTCG tax without indexation.

Why in News?
In response to criticism of the Budget proposal to remove indexation on long-term capital gains
(LTCG) from unlisted assets, the government now offers taxpayers a choice. For properties acquired
before July 23, 2024, they can either pay LTCG tax at 20% with indexation or at 12.5% without it.

Balance of Payment & International Trade

Yen Carry Trade

About Carry Trade:

y Carry Trade is a strategy where investors borrow in a low-interest currency and invest in assets
with higher interest rates, seeking to profit from the yield difference.

About Yen Carry Trade:

y Yen Carry Trade involves borrowing Japanese yen, due to its historically low interest rates,
and investing in higher-yielding currencies or assets. For example, an investor might borrow
Japanese yen (JPY) at a 0.1% interest rate to buy U.S. Treasury bonds yielding 4%. The investor
profits from the 3.9% difference if exchange rates stay about the same.

Economy 36
 ⚪ Impact: Affected currency values and international financial markets, as large-scale yen
borrowing and conversion can lead to yen depreciation.

Why in the News?

Recently, global stock markets and India’s Sensex dropped sharply due to investors pulling out of
yen carry trades in response to Japan’s higher interest rates.

Botswana discovers the world’s second-largest diamond

About Diamond:
y It is a natural mineral made of carbon atoms in a crystal lattice, known for being the hardest
material and having a high refractive index, which gives it exceptional brilliance and sparkle.
y Formation: Form deep within the Earth’s mantle under extreme pressure and high temperatures,
typically at depths of 140 to 190 kilometers.
y Global diamond production:
⚪ Leading producers: Russia, Botswana, Canada, and the Democratic Republic of Congo (DRC).
⚪ World’s largest diamond is Cullinan Diamond, 3,106-carat discovered in South Africa in
1905.
y Diamonds in India:
⚪ Major locations: Panna belt (Madhya Pradesh), Wajrakarur Kimberlite pipe (Andhra Pradesh),
Krishna River Basin (Andhra Pradesh).
About X-ray technology:
y In diamond mining, X-ray detection technology is used to identify diamonds by their unique
atomic structure.
y Diamonds emit a distinctive light when exposed to X-rays, allowing machines to detect and
separate them from other materials.

Why in News?
A massive 2,492-carat diamond, the second largest in the world, has been discovered in Botswana,
Karowe Diamond Mine using X-ray technology by Lucara Diamond Corp.

Economy 37
India’s fuel exports to Europe shift entirely to longer routes around Africa

Background:
y India became a key fuel supplier to Europe after the Russia-Ukraine conflict and sanctions on
Russia.
y According to UN Trade and Development (UNCTAD), the Red Sea-Suez Canal is the primary
maritime route, handling around 12-15% of global maritime trade.
⚪ Rean artificial, sea-level waterway that extends from north to south through the Isthmus of
Suez in Egypt, linking the Mediterranean Sea with the Red Sea.

Need for Route Shift:

y Houthis Attacks: Iran-backed Houthi rebels threaten ships near the Bab el-Mandeb strait, a
critical chokepoint.
y Israel-Hamas Conflict: Rising fears of the conflict escalating into a broader Middle Eastern
crisis.

Consequences of Route Shift

y Reduced Supply to Europe: India’s fuel exports to Europe have declined due to security risks.
y Increased Shipping Time and Costs: Switching to the Cape of Good Hope route adds around
two weeks and increases freight rates by over 30%.

Economy 38
 Suez Canal:
y It is an artificial, sea-level waterway that extends from north to south through the Isthmus
of Suez in Egypt, linking the Mediterranean Sea with the Red Sea.
y It is the world’s busiest shipping route, handling over 12% of global trade by volume.

Why in News?
Recently India’s fuel exports are shifting from the Red Sea-Suez Canal route to the Cape of Good
Hope due to security risks from Houthis’ attacks and the Israel-Hamas conflict.

Sectors of the Economy, GDP, Inflation

Push for Horticulture Sector by Establishing Export-Oriented horticulture clusters

About Horticulture Cluster:

y These are specialized areas dedicated to growing, processing, and exporting horticultural
products, enhancing productivity and quality to boost international trade.
⚪ India is the second-largest producer of fruits and vegetables, contributing 33% to agricultural
GVA, but holds only 1% of the global market, ranking 14th in vegetable exports and 23rd in
fruit exports.

Initiatives to promote Horticulture in India

Aims for integrated horticultural development with a

National Agriculture Policy 2000 focus on knowledge, technology, and farmer-centric
approaches.
To enhance horticultural production, infrastructure,
Mission for Integrated Development
technology, and export while supporting research and
of Horticulture (MIDH)
development.
Horticulture Area Production A web-based system that reports data from states/
Information System (HAPIS) districts, improving coverage and reducing time lags.
CHAMAN (Coordinated programme A program using Remote Sensing and Sample Survey
on Horticulture Assessment and Techniques to develop methods for estimating
MANagement using geoinformatics) horticultural area and production.

Why in News?
Recently the Ministry of Agriculture & Farmers’ Welfare announced the establishment of 100 export-
oriented horticulture clusters to support the horticulture sector in India.

Note: Refer Articulate Magazine for April 2024 for more details.

Economy 39
Kasturi Cotton Bharat

Kasturi Cotton Bharat

Initiative By the Government of India, Textile Trade Bodies, and Industry.

Objective To create premium value for Indian cotton with benchmarked specifications.
Platform Provides updates on registration and processes for this unique cotton.
Implementing Ministry of Textiles; The Cotton Textiles Export Promotion Council
Agency (TEXPROCIL) oversees traceability, certification, and branding.

About Ginning:
y It is the process of separating cotton fibers from seeds, essential for cotton textile production.
y Purpose: Removes seeds and impurities, leaving pure cotton fibers for spinning into yarn.
y Process:
⚪ Manual Ginning: Traditionally done by hand, labor-intensive and slow.
⚪ Mechanical Ginning: Modern ginning uses machines like cotton gins for efficient separation.

Types of Gins:
y Saw Gin: Uses saw-toothed blades, ideal for upland cotton.
y Roller Gin: Uses a roller and knife, suitable for longer-staple cotton like Pima.

Why in News
The Ministry of Textiles has empowered ginners to produce the Kasturi Cotton Bharat brand, using
QR-based certification technology to ensure complete traceability.

Economy 40
Krishi-Decision Support System (KDSS)

About Krishi-Decision Support System (KDSS):

y It is a satellite-based system, developed by the Union Ministry of Agriculture and the
Department of Space using RISAT-1A and Visualization of Earth observation Data & Archival
System (VEDAS).
y Objective: It is designed to help farmers enhance crop management and boost productivity.
y Features:
⚪ Real-Time Information: Provides real-time insights into crop conditions, weather patterns,
water resources, and soil health.
⚪ Disaster Warnings: Offers early warnings for disasters like pest infestations and extreme
weather events.
⚪ Geospatial Platform: Uses satellite imagery to track and forecast crop health and potential
risks.
⚪ Crop Monitoring and Diversification: Promotes crop mapping and monitoring while
encouraging crop rotation and diversification across regions.

Why in News?
Recently, Union Agriculture Ministry launched a digital geo-spatial platform, Krishi-Decision
Support System (KDSS).

National Coal Index declines by 3.48% in 2024

About National Coal Index:

y 2020: launched by the Ministry of Coal
and reflects changes in coal prices
relative to the base year FY 2017-18.
y Scope: The index covers all raw coal
transactions, including coking and non-
coking grades, across regulated and non-
regulated sectors.
y Purpose:
⚪ Pricing Transparency: The NCI was
developed to create a comprehensive
and reliable price index for different grades of coal, bringing transparency to the pricing
mechanism in the coal sector.
⚪ Benchmark for Auctioning: It acts as a benchmark for auctioning coal blocks and assists in
determining the revenue share for the government based on coal prices.

Why in News?
Recently the National Coal Index (NCI) decreased by 3.48% in June 2024, dropping to 142.13 points
from 147.25 points in June 2023, reflecting sufficient coal availability to meet demand.

Economy 41
Oeko-Tex certification for Eri Silk

About Oeko-Tex certification:

y 1992: Founded by Oeko-Tex Association.
Comprises 18 independent textile
research and testing institutes.
y It is a label for textiles tested for harmful
substances, setting the standard for
textile safety from yarn to finished
product.
y This certification is a key milestone in
positioning Eri Silk for global export,
expanding its reach, and establishing a
strong international presence.
About Eri Silk:
y It is a protein fiber from the cocoons of the Samia Cynthia Ricini or Philosamia Ricini moth,
known for its softness, durability, and thermal properties.
y Primarily produced in India’s North-Eastern states, including Assam, Meghalaya, Nagaland,
and Manipur.
y It holds a Geographical Indication (GI) certification from Assam.
y There are four types of natural silk:
⚪ Mulberry silk (Highest quality silk): Contributes 90 per cent of world production.
⚪ Non-Mulberry Silk: Such as Eri silk; Tasar silk; and Muga silk.
y Assam produces all four varieties of silk, with a focus on Muga and Eri, known as Vanya Silk.
y India is the second-largest producer of silk in the world, after China.
y The top silk-producing states in India are: Karnataka, Andhra Pradesh, West Bengal, Tamil
Nadu, and Uttar Pradesh.

Why in News?
The North Eastern Handicrafts and Handlooms Development Corporation (NEHHDC) has achieved
the prestigious Oeko-Tex certification for its Eri Silk from Germany.

Infrastructure, Manufacturing, Energy Resources

Ministry of Mines Cancels Lithium Auction

About Lithium (Li):

y Also known as ‘White Gold’ due to high demand for rechargeable batteries, is a soft, silvery-
white metal.
y Major Global Reserves: Chile, Australia, Argentina, China and The Lithium Triangle (Bolivia,
Argentina, Chile) holds roughly 60% of the world’s lithium.
y Reserves in India:
⚪ Major states/UTs: Jammu & Kashmir, Karnataka, Rajasthan, Jharkhand, Andhra Pradesh
⚪ 5.9 million tonnes discovered in Reasi, Jammu & Kashmir

Economy 42
y Import Dependency: India imports 70–80% of its lithium and 70% of its lithium-ion batteries
from China.

Reasons for Lack of Investors Engagement:

y Clay Deposits: J&K’s lithium reserves are clay-based, a type not yet commercially proven
globally, which may delay commercialization.
y Lack of Beneficiation Study: No feasibility study on lithium extraction has been conducted,
raising concerns about economic viability.

Why in News?
The Ministry of Mines has scrapped the auction for the lithium block in J&K’s Reasi for the second
time due to a lack of investor interest.

Criticism Over the Import of Coal from Carmichael Mine

About Carmichael Mines:

y Location: Galilee Basin in Central Queensland, Australia.
y Coal mined here has low sulfur content and high calorific value.

About Godda Power Plant:

y It is India’s first power project exclusively dedicated to exporting electricity to another nation.
y 2017: Under the Power Purchase Agreement (PPA) with the Bangladesh Power Development
Board (BPDB) it supplies 1,496 megawatts of power to Bangladesh.

Issue Involved:
y New Amendment: India’s power export rules amended to allow rerouting power to domestic
grids if partner countries delay payments.
y Godda Power Plant: Adani Power’s Jharkhand plant, supplies 1,496 MW to Bangladesh.
y Criticism: Concerns over the use of coal from the Carmichael mine in Australia for power
generation which is of high cost and high cost are being transferred to Bangladesh.

Economy 43
Why in News?
Recently India has amended power export rules to allow rerouting power to domestic grids which is
impacting the Godda project, which supplies power to Bangladesh using coal from the Carmichael
mine.

Human Resource Development, Health and Education

IIT Madras retains top spot in NIRF ranking

About National Institutional Ranking Framework (NIRF):

National Institutional Ranking Framework (NIRF)

2015 Launched by the Union Minister of Human Resource Development.

NIRF is a methodology adopted by the Ministry of Education to rank higher
Framework
education institutions in India.
Evaluates institutions based on five key parameters:
y Teaching Learning & Resources
y Research and Professional Practice
y Graduation Outcome
Evaluation y Outreach & Inclusivity, and Perception.
Five broad categories of parameters (Teaching, Learning & Resources,
Research and Professional Practice, Graduation Outcome, Outreach and
Inclusivity,
Perception) identified in the NIRF and their varied weightage.
The Ministry released the 9th edition of NIRF.
Key Findings: IIT Madras topped the overall category, followed by IISc
2024 (August) Bengaluru in second place and IIT Bombay in third.
This edition has introduced three new categories namely State Public
Universities, Open Universities, and Skill Universities

Why in News?
The Indian Institute of Technology, Madras has been ranked the best educational institution in
India for the sixth time since 2019, according to the 9th National Institutional Ranking Framework
(NIRF).

Education Ministry defines ‘literacy’, ‘full literacy’ in push for adult literacy

About New Definition of Literacy:

y It refers to the ability to read, write, compute, and apply critical skills like understanding,
interpreting, creating, as well as digital and financial literacy.

Economy 44
y Full Literacy: A State or Union Territory is considered fully literate when it attains a literacy
rate of 95%.
y Under New India Literacy Programme (NILP), individuals are literate if they pass the Foundational
Literacy and Numeracy Assessment Test (FLNAT).

Literacy Statistics in India:

y 2011 Census: India had 9.08 crore men and 16.68 crore women among 25.76 crore illiterate
individuals aged 15 and above.
About Foundational Literacy and Numeracy Assessment Test (FLNAT):
y It is an evaluation tool used to measure basic reading, writing, and arithmetic skills.
y It assesses whether individuals have foundational literacy and numeracy skills for effective
comprehension, interpretation, and application.

About New India Literacy Programme (NILP):

y 2022: The Government launched the NILP for FY 2022-23 to 2026-27.
y Aim: To cover a target of 5 crore non-literates in the age group of 15 years and above.
y The Scheme has five components: (i) Foundational Literacy and Numeracy, (ii) Critical Life
Skills, (iii) Vocational Skills Development, (iv) Basic Education and (v) Continuing Education.

Why in News?
The Education Ministry has defined ‘literacy’, and what it means to achieve ‘full literacy,’ in light of
a renewed push for adult literacy under the New India Literacy Programme (NILP).

Rebranding of Fair Price Shops (FPS) as Jan Poshan Kendra

About Jan Poshan Kendra:

y Aim: Enhance nutritional offerings for beneficiaries under the Pradhan Mantri Garib Kalyan
Anna Yojana (PMGKAY).
y Purpose: Provide additional items beyond subsidized grains to support ration dealers’ income
and improve nutrition for PMGKAY beneficiaries.
y Key Features of Jan Poshan Kendras:
⚪ Offer nutrition-rich foods like pulses, dairy products, and subsidized grains.
⚪ 50% of space is allocated for nutritional items, remaining for household goods.
⚪ Financial support through loans and invoice financing from SIDBI.
⚪ Collaborations with AMUL for dairy and eB2B platforms like Udaan and Jumbotail for
sourcing.
y Digital Tools and Initiatives:
⚪ FPS Sahay Application: Paperless, collateral-free financing for dealers.
⚪ Mera Ration App 2.0: Provides public distribution system information to consumers.
⚪ Quality Management System: Ensures food quality control.

Why in News?
The Ministry of Consumer Affairs, Food and Public Distribution (CA, F&PD) launched a pilot project
for transformation to rename 60 FPS as Jan Poshan Kendra and other technical initiatives assisting
FPS in Gujarat, Rajasthan, Telangana, and Uttar Pradesh.

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Probable MCQs
1. With reference to Build Operate Transfer (BOT) model, consider the following statements:
1. Under the BOT model, both the government and the private entity share the investment
risk.
2. The private entity handles both the construction and maintenance of the project during the
concession period.
3. It indicates a move by the government away from Public-Private Partnership (PPP) projects.
Which of the statements above is/are correct?
(a) 1 Only
(b) 1 and 2 Only
(c) 1 and 3 Only
(d) 2 and 3 Only
Ans: (b)

2. Which of the following is the primary function of ‘Indexation’?

(a) To establish the tax rates in a country.
(b) To adjust the value of an asset for inflation.
(c) To account for seasonal variations in price adjustments.
(d) To determine the inflation rates.
Ans: (b)

3. Consider the following:

1. Special Drawing Rights (SDRs)
2. Oil Reserves
3. Silver
4. Foreign Currency Assets
5. Gold
Which of the above components are part of India’s Foreign Exchange Reserves?
(a) 1, 2 and 3 Only
(b) 1, 4, and 5 Only
(c) 2, 3 and 4 Only
(d) 1, 2 and 5 Only
Ans: (b)

4. With reference to ‘Krishi-Decision Support System’, Consider the following statements:

1. It is a satellite-based system, developed by the Union Ministry of Agriculture and the
Department of Space.
2. It provides near real-time information on soil moisture, water storage and crop conditions.
3. It is designed to help farmers enhance crop management and boost productivity of crops.
How many statement(s) mentioned above are not correct?
(a) Only One
(b) Only two
(c) All three
(d) None of the above
Ans: (d)

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5. Consider the following statements regarding the Union Minister’s pilot program to transform
Fair Price Shops (FPS) into Jan Poshan Kendras:
1. The FPS Sahay application was launched to enable paperless financing for FPS dealers.
2. Mera Ration App 2.0 was introduced to enhance services for beneficiaries.
3. The program includes NABL accreditation of laboratories to improve food quality control in
the Public Distribution System (PDS).
Which of the above statements is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: (d)

Economy 47