PT 365 SUMMARY: 2024-25

BY: TRULY STUBBORN

➢ This document contains summary of PT 365 from April 2024 – January 2025 i.e., it
includes Updated Part 1 as well.

➢ This document is not a substitute of the original document. However, It can be

referred for a quick revision before the exam.

➢ Most of the things have been copied verbatim from the original document.
However, I have added or substituted a few things here and there.

➢ Vision IAS holds the copyright for the original content.

This document is prepared for the benefit of CSE community. It is not intended to be used
for any commercial purpose.

You can find other updates related to UPSC CSE on Telegram Channel @RelookUPSC
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MONETARY POLICY OF RBI

Statutory Basis: RBI, Act, 1934 (amended in 2016).
• Central Government, in consultation with RBI, determines inflation target in terms of
Consumer Price Index (CPI) every 5 years.
• Flexible Inflation Targeting: Currently, it is 4% ( +/- 2%) till March, 2026.
Tools of Monetary Policy
1. Quantitative Tools are instruments used to influence the quantity of credit in the
economy. E.g, Open Market Operations (buying and selling of government securities),
Bank Rate, Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Marginal standing
facility, Liquidity Adjustment Facility (Repo & Reverse Repo).
2. Qualitative Tools help to control the distribution and direction of the loans to different
sectors of the economy. E.g, Rationing of Credit, Regulation of Credit for consumption
Purposes, Variation of Margin Requirements, Moral Suasion, Direct Action.
✓ RBI's sterilizations involve managing excess liquidity in the economy to stabilize inflation
& currency fluctuations. It uses tools like OMOs, CRR, Market Stabilization Scheme etc.
→ Expansionary Monetary Policy increases market liquidity, boosts demand, and
stimulates economic growth.
• RBI Buys G-securities from Market under Open Market Operations, Reduces CRR,
SLR, Repo Rate, Reverse Repo Rate and Bank Rate
→ Contractionary Monetary Policy Leads to a decline in liquidity, money supply, borrowing
by businesses and individuals, accompanied by rise in unemployment rates.
• RBI sells G-securities from Market under Open Market Operations, Increases CRR,
SLR, Repo Rate, Reverse Repo Rate and Bank Rate
➢ Variable Rate Repo (VRR) is a market-determined rate, generally lower than the Repo
Rate (but not below the Reverse Repo Rate) and applies to loans with durations exceeding
one day usually up to 14 days.

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✓ Repo Rate is the rate at which Banks borrow money from RBI which is fixed by Monetary
Policy Committee.

PRIORITY SECTOR LENDING (PSL)

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MUMBAI INTERBANK OUTRIGHT RATE (MIBOR)

• London Interbank Offered Rate (LIBOR) is a global benchmark interest rate at which
major global banks lend to one another in the international interbank market for short-
term loans.
• Secured Overnight Financing rate (SOFR) is benchmark rate used in USA
• Call Money Market is a financial market where financial institutions and banks lend and
borrow funds for short-term needs.
The Reserve Bank of India (RBI) has decided to float a new interest rate benchmark - the
Secured Overnight Rupee Rate (SORR) - to capture the essence of the broader money
markets and to improve credibility of the index.
• The new benchmark will be based on the secured money market transactions -- both
market repo and tri party repo (TREPS)
• SORR, therefore, would be more representative of the overnight market funding rate
than the call money market. SORR will eventually replace the MIBOR, which has been
in vogue since 1998.

➢ Credit-Deposit (CD) Ratio is a financial metric representing the percentage of loans a

bank has issued relative to its total deposits.
• A higher CD Ratio suggests that a significant portion of the bank's resources are
allocated to loans

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➢ Ways and Means Advance (WMA) is kind of loan provided by RBI to States/UTs and Union
Government to meet temporary mismatches in the cash flows (Under RBI Act, 1934)
• First Special WMA is provided and after its exhaustion, Normal WMA is provided.
• Special WMA (now known as Special Drawing Facility (SDF) has lower interest rate
than Normal WMA
• Interest Rates: linked to Repo rate.
➢ Financial Inclusion Index, released by RBI is a comprehensive index incorporating details
of banking, investments, insurance, postal as well as the pension sector.
➢ Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 to provide cost-free
redress of customer complaints covers the following Regulated Entities:
(i) All commercial banks, Regional Rural Banks, Scheduled Primary (Urban) Co-
operative Banks and Non- Scheduled Primary (Urban) Co-operative Banks with
deposits size of ₹50 crore and above.
(ii) All Non-Banking Financial Companies (except Housing Finance Companies),
authorized to accept deposits or have customer interface, with an assets size of
₹100 crore and above.
(iii) All Payment System Participants and Credit Information Companies (CICs).
➢ Universal banks (UBs) are banks that offer a wide range of financial services, beyond
commercial banking and investment banking, such as insurance

➢ Dividend Equalisation Fund (DEF) are set up by Urban Cooperative Banks (UCBs) through
appropriation of profits to pay dividends in future years, when profits are insufficient or
where the bank has posted a net loss. However, current rules distinctly prohibit making
such payments from previously accumulated profits or reserves.
➢ Urban Cooperative Banks (UCBs) are registered as cooperative societies either under the
State Cooperative Societies Act of the State concerned or the Multi-State Cooperative
Societies Act, of 2002.
• RBI regulates and supervises banking functions under the Banking Regulation Act, of
1949.
• State/ Central Registrar of Cooperative Societies supervises managerial,
administrative, and, other matters.
• Mandated to achieve priority sector lending target 75% by March 2026 and are
allowed to lend money for agricultural purposes.

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➢ All collateral-free loans to individual/s belonging to low-income households, i.e.,

households having annual income up to ₹3, 00,000 are treated as microfinance loans
(RBI).
• Microfinance Institutions usually charges higher Interest rates compared to those
charged by commercial banks.
➢ Pradhan Mantri Mudra Yojana (PMMY): Providing loans up to 10 lakh to non-corporate,
non-farm small/micro enterprises through commercial banks, NBFCs, etc.
• Loans under MUDRA are categorized as Shishu, Kishore and Tarun.
• 2024 Union Budget enhanced limit to ₹20 lakh (Tarun Plus) from current ₹10 lakh for
those who have availed and successfully repaid loans previously taken under Tarun
category.

➢ Non-Banking Financial Company (NBFC) is a company registered under the Companies

Act, 1956/2013, primarily engaged in lending activities, but excludes institutions mainly
involved in agriculture, industrial activity, trading goods (except securities), and providing
any services and sale/purchase/construction of immovable property.
Regulation:
o National Housing Bank: Regulates Housing Finance Companies.
o SEBI: Regulates Merchant Banker/Venture Capital Fund Company/stock-
exchanges/stock brokers/subbrokers.
o Insurance Regulatory and Development Authority: Regulates Insurance companies.
o State Governments: Regulates Chit Fund Companies.
o Ministry of Corporate Affairs regulates Nidhi Companies.

➢ Deposit Insurance and Credit Guarantee Corporation (DICGC) established under DICGC
act, 1961, covers all commercial banks including branches of foreign banks functioning in
India, local area banks, and regional rural banks.
• DICGC insures all bank deposits upto a maximum amount of Rs. 5 lakhs.
• It is not available to depositors of NBFCs.

➢ Financial Stability and Development Council (FSDC) was setup as apex level forum in
2010 to strengthen and institutionalise the mechanism for maintaining financial stability,
enhancing inter-regulatory coordination & promoting financial sector development.
• Composition: Chairman of FSDC is the Finance Minister. Its members include heads
of financial sector regulators (RBI, SEBI, PFRDA, and IRDAI), Finance Secretary and/or
Secretary, Department of Economic Affairs, Secretary, Department of Financial
Services, and Chief Economic Adviser.

➢ Co-lending/Co-origination is an arrangement where multiple lenders partner to provide

loans to borrowers. This helps increase lending capacity and reduces risk for individual
lenders.
• 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.

➢ Luxury Goods: Goods which non-essential but deemed as highly desirable within a
culture/society. Ex. Sports Utility Vehicles (SUVs).

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➢ Sin Goods: Goods which are considered harmful/ undesirable for society & considered
ethically questionable by society Ex. Gambling, alcohol etc.
➢ Demerit Goods: Goods that consumer like but are actually harmful & therefore their
consumption is discouraged. Ex. Tobacco, Cigarettes etc.

Adjudicating Authority under Insolvency and Bankruptcy Code, 2016

• National Company Law Tribunal (NCLT): For Corporate Insolvency Resolution
Process (CIRP) and liquidation of corporate persons, including corporate debtors
(CDs) and their personal guarantors.
o IBC mandates completion of the CIRP within 180 days, extendable to a maximum of 330
days.
• Debt Recovery Tribunal (DRT): For individual or partnership insolvency and
bankruptcy.
o For DRT, the timeline to resolve a debt recovery case is 180 days.
Appellate Tribunal:
• National Company Law Appellate Tribunal (NCLAT): For hearing appeals against the
orders passed by NCLT’s and Insolvency and Bankruptcy Board of India (IBBI).
NCLAT’s decisions can be further appealed in the Supreme Court.
• Debt Recovery Appellate Tribunal: Appeals from DRTs are filed before the Debt
Recovery Appellate Tribunal. It can be further appealed in SC within 45 days

ASSET RECONSTRUCTION COMPANIES (ARC)

It is a financial institution that buys Non-Performing Assets (NPAs) from banks & financial
institutions so that the latter can clean up their balance sheets. E.g., National Asset
Reconstruction Company Limited.
• ARCs are required to resolve the assets within a maximum of 8 years of acquisition
of financial assets and redeem the security receipts representing the assets.
• ARCs are prohibited from raising money by way of deposit.
• Mandated to maintain a capital adequacy ratio of a minimum of 15% of its total risk-
weighted assets.
Reserve Bank of India (RBI) has issued master Direction – RBI (Asset Reconstruction
Companies) Directions, 2024 under (SARFAESI) Act, 2002.

➢ Inverted Duty Structure refers to situation where import duties on input goods are higher
than on finished goods. In other words, the GST rate paid on purchases is more than the
GST rate payable on sales.

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GOODS AND SERVICE TAX (GST)

Inheritance Tax (India Estate Duty (India - Gift Tax (Current - Under
Feature Wealth Tax
- Abolished) Abolished) Income Tax)
Holding wealth Receiving assets after Passing on the total Receiving certain gifts
Tax Event
during lifetime someone's death estate after death during lifetime
Wealth holder
Individual beneficiary Gift recipient (under
Tax Payer (individual, HUF, Deceased's estate
inheriting assets specific conditions)
company)
One-time upon One-time upon When gift is received (if
Timing Annual
inheritance death taxable)
Net value of Value of specific gifts
Value of assets Total value of the
Tax Base specific assets received (above 50k /from
received by each heir deceased's estate
held non-relatives)
Status in Abolished Taxable under Income Tax
No current tax Abolished (1985)
India (2015) Act (since 2004)

➢ Indexation refers to adjusting the purchase price of an asset for inflation while
computing the capital gain.
• Cost Inflation Index (CII) is used in the calculation of Inflation adjusted price of an
asset which estimates the increase in an asset's price as a result of inflation.
Grandfather Clause allows properties purchased before the cutoff date to still benefit from
indexation, despite the new rules for future acquisitions

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ADVANCE PRICING AGREEMENTS

➢ Mutual Agreement Procedure (MAP) is an alternative available to taxpayers for

resolving double taxation disputes whether juridical or economic in nature.
➢ Base Erosion and Profit Shifting (BEPS) refers to tax planning strategies used by
Multinational Enterprises (MNEs) that exploit gaps and mismatches in tax rules to avoid
paying tax.
o This is done by artificially shifting profits from higher tax to lower or no tax locations
where there is little or no economic activity or by eroding tax bases through deductible
payments such as interest or royalties.

➢ Duty Drawback under Customs Act, 1962 rebates customs duty chargeable on any
imported materials or excisable materials used in the manufacture of export goods.
o It helps exporters offset some of the costs accrued during the export process, particularly
in the supply or value chain.

➢ Digital Public Infrastructure is a set of shared digital systems that-

• Should be secure and interoperable,
• can be built on open standards and specifications to deliver and provide equitable
access to public and / or private services at societal scale.
• are governed by applicable legal frameworks & enabling rules
India Stack is India's own foundational DPI, consists of 3 interconnected layers:
Identity Layer – (e.g, Aadhar), Payment layer (e.g., UPI) and Data governance layer
(e.g, DigiLocker.)
➢ A windfall tax is a tax imposed by governments on certain industries that experience
significantly above average profits due to favourable economic conditions

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UPI
Unified Payments Interface, launched in 2016, is an instant real-time payment system
developed by National Payments Corporation of India (NPCI).
• NPCI was incorporated in 2008 by RBI and Indian Banks’ Association (IBA) under
provisions of Payment and Settlement Systems Act, 2007.
• The standard UPI transaction limit is ₹1 lakh per day, ₹2 lakh for capital markets,
insurance, and foreign remittances and ₹5 lakh for tax payments, educational
institutions, hospitals, IPOs, and RBI retail direct schemes.
• Other countries that support UPI payments include Sri Lanka, Mauritius, France, UAE,
Singapore, Bhutan, and Nepal
Variants of UPI
(i) UPI123Pay, started in 2022 to enable feature-phone users to use UPI, it is available
in 12 languages.
• Technology alternatives include IVR number, app functionality, missed-call and
proximity sound based payments.
• RBI enhanced the per-transaction limit from ₹5000 to ₹10,000.
(ii) UPI Lite allows users to make low-value transactions without entering a UPI PIN.
• RBI enhanced per-transaction limit to ₹1,000 from ₹500 and overall wallet limit to
₹5,000 from ₹2000.

➢ Project Nexus is a multilateral international initiative to enable instant cross-border retail

payments by interlinking domestic Instant Payments Systems (IPS). RBI is its member.
➢ Venture Capital Fund (VCF) is used for high-risk, high-return investment in return for
equity stakes in business. VCFs are governed by SEBI (VCF) Regulations, 1996.
➢ National Stock Exchange (NSE), Headquartered in Mumbai, incorporated in 1992 and
commenced operations in 1994. It is India’s largest stock exchanges by market cap.
➢ Co-location or Proximity Hosting allows brokers to place their servers on the premises of
stock exchanges (equipped with suitable infrastructure) for a fee.
➢ Financialization is a process whereby financial markets, financial institutions, and
financial elites gain greater influence over economic policy and economic outcomes.
➢ Credit Rating Agencies (CRAs) are forward-looking opinions on the rability of an entity
to meet its financial commitments, i.e., credit risk or creditworthiness of a borrower.
• A CRA is different from Credit Bureau as CRA provides an opinion relating to future
debt repayments by borrowers while Credit Bureau provides information on past
debt repayments by borrowers.
• In India, CRAs are primarily regulated by SEBI.

➢ Infrastructure Investment Trusts (InvITs) are type of investment vehicle similar to a

mutual fund that allows investors to invest in infrastructure projects like toll, roads etc.
• InviTS earn income through tolls, rents, interest or dividends from their investments,
which in turn is distributed to the investors as their taxable earnings.)

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➢ Perpetual bonds are fund-raising instruments that do not carry any maturity date as
bonds usually do, instead, they offer to pay their buyers a coupon or interest at a fixed
date for perpetuity.
➢ Participatory Notes (P-Notes) act like a substitute for underlying Indian company shares.
➢ Carry Trade is an investment strategy most often associated with foreign currency trading
whereby an investor borrows in a low interest-rate currency to buy a currency or asset
earning a higher interest rate.
➢ Gold backed currency has fixed value directly linked to gold, and is convertible into gold.
• It has its inherent value and has potential for stability in long run as money supply is
limited by available gold reserves.
• Recently, Zimbabwe launched the gold-backed currency called ZiG.

FOREIGN DIRECT INVESTMENT (FDI)

Department for Promotion of Industry

and Internal Trade (DPIIT) is nodal
Department for formulation of FDI policy
in India.

RBI classifies Foreign Portfolio Investment into FDI if the investment breaches the 10% stake
threshold of an Indian company.

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Securities and Exchange Board of India (SEBI)

Securities and Exchange Board of India (SEBI) introduced beta version of T+0 rolling
settlement cycle on optional basis in addition to the existing T+1 settlement cycle.
• Settlement Cycle refers to the period within which securities and funds are delivered
and settled after a trade is executed between a buyer and a seller.
• In 2023, Indian exchanges shifted to T+1 settlement cycle (1 day settlement) from T+2
settlement cycle.
• T+0 Settlement Cycle refers to a system where Settlement of trades shall happen on the
same day after the closure of market.

➢ Finternet envisions interconnected financial ecosystems like the internet, empowering

individuals and businesses by placing them at the center of their financial activities

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➢ Derivatives are financial contracts set between two or more parties that derive their
value from an underlying asset (securities, commodities, bullion, currency etc.).

➢ Trade deficit (negative trade balance) occurs when country’s value of imports exceeds
exports.
• According to Union Ministry of Commerce and Industry, in the FY 2023-24, India
recorded trade deficit with 9 out of its top 10 trading partners

➢ Triffin Dilemma refers to conflict that arises when a country needs to supply enough of
its currency to meet global demand while also maintaining its domestic monetary policies.
➢ Indian National Rupee is fully convertible in the current account but partially in the
capital account.

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World Bank
World Bank released the report titled the ‘World Development Report 2024.

International Monetary Fund (IMF)

IMF provides financial support to countries hit by crises and unlike development banks, the
IMF does not lend for specific projects.
• "Gold Tranche" (Reserve Tranche) refers to a credit system granted by IMF to its
members.
• Key Reports by IMF: World Economic Outlook, Global Financial Stability Report
Extended Fund Facility (EFF) under IMF provides assistance to countries experiencing serious
payment imbalances because of structural impediments or slow growth and an inherently
weak balance-of-payments position.
• All member countries facing actual or potential external financing needs are eligible.

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➢ Front Running means use of non-public information to directly or indirectly buy or sell
securities, or enters into options or futures contracts, in advance of a substantial order.
➢ Fiat Currency lacks intrinsic value and is established as legal tender by government. Its
value is determined by supply & demand and is not supported by any physical commodity

World Trade Organization

Marrakesh Agreement signed in Marrakesh, Morocco, by 123 countries in 1994, after the
conclusion of the Uruguay Round led to formation of the WTO in 1995, replacing General
Agreement on Tariffs and Trade (GATT) as the global trade body.

De Minimis limits: Under it, country’s subsidy bill should not breach limit of 10 % (for
developing countries) & 5 % (for developed countries) of value of production. Currently, it is
calculated as the reference price for 1986-88.

➢ Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement is the most
comprehensive multilateral agreement on intellectual property rights (IPR) under WTO
• Coverage: Copyright, trademarks, geographical indications, industrial designs, patents,
layout-designs of integrated circuit etc

➢ Middle Income Trap refers to a situation wherein rapidly growing economies stagnates
at middle income levels and fails to graduate into the ranks of high-income countries

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Human Development Report is released by United Nations Development Programme

(UNDP) annually since 1990

➢ “Crowding out” refers to a phenomenon where increased government spending funded

by higher taxes and enhanced borrowing reduces private sector income and loan
demand (due to a rise in interest rates).

Global Multidimensional Poverty Index (MPI) report, 2024 published jointly by the United
Nations Development Programme (UNDP) and Oxford Poverty and Human Development
Initiative (OPHI)

National MPI (NMPI) was introduced in 2021 by NITI Aayog. It uses National Family Health
Survey (NFHS) to measure the NMPI.
• Indicators: Retained the 10 original indicators of the global MPI model and has
added two indicators, viz., Maternal Health and Bank Account.
➢ Preston Curve highlights that an increase in per capita income of a country does not
cause much of a rise in the life expectancy of its population beyond a point.
o When a poor country begins to grow, its per capita income rises and causes increase in
life expectancy initially due to nutrition, sanitation and access better healthcare.
However, it begins to flatten out after a certain point.

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➢ Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2024 Awarded
to Daron Acemoglu, Simon Johnson and James A. Robinson for “studies of how
institutions are formed and affect prosperity”.
o It is not one of the five Nobel Prizes established by Alfred Nobel's will in 1895.

➢ India is ranked 2nd in fruits and vegetable production globally after China and 1st in
production of Bananas, Mangoes, & Papayas.
o Exports: India is ranked 14th in vegetables and 23rd in fruits.

DIGITAL AGRICULTURE MISSION

It is an umbrella scheme based on Digital Public Infrastructure (DPI) to improve farmers'
lives. It is built on 2 foundational pillars:
1. Agri Stack (Kisan ki Pehchaan): A farmer-centric DPI to streamline services and
scheme delivery to farmers with 3 key components:
(i) Farmers' Registry: Issuance of ‘Farmer IDs’, which will act as digital identity for
farmers.
(ii) Geo-referenced village maps: Linking of the Farmer IDs to farmer-related data
such as Land records.
(iii) Crop Sown Registry: Digital Crop Survey.
2. Krishi Decision Support System (DSS): Integrates remote sensing data into geospatial
system to provide real-time information on crop conditions, weather patterns etc.
o Developed using RISAT-1A and Visualization of Earth observation Data and Archival
System (VEDAS) of the Department of Space.
Key Targets: Create digital identities for 11 crore farmers over three years and launch
nationwide Digital Crop Survey in 2 years.

Agricultural Exports
Agricultural Exports and import registered a decline in 2023-24.
o Rice constitutes 21% of total exports followed by Marine products (15%) and spices (9%)
o Vegetable oil constitutes 45% of imports, followed by pulses (11%), fruits & vegetables.
o The share of India’s agricultural exports and imports in world agriculture trade in 2022
were 2.4% and 1.9%, respectively (WTO’s Trade Statistical Review, 2023)
o India was ranked 9th in ranking of the global Agri exporters.

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➢ Food Corporation of India (FCI) is a Public Sector Undertaking under the Ministry of
Consumer Affairs, Food, and Public Distribution.
• Established in 1965 under the Food Corporation Act 1964 to address grain shortages,
especially in wheat

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MILLETS
Millets are good source of minerals like iron, zinc, and calcium; Low Glycemic Index (good to
prevent diabetes; Gluten-free (beneficial for celiac disease patients).

SPICES
India is the world’s largest producer, consumer and exporter of spices.
• Chilli, cumin, turmeric, ginger and coriander makeup about 76% of the total production.
• The largest spice-producing states are Madhya Pradesh, Rajasthan, Gujarat etc.
→ SPICED Scheme (Sustainability in spice sector through Progressive, Innovative and
Collaborative interventions for Export Development) approved by Union Ministry of
Commerce and Industry aim to expand the area under cardamom and increase
productivity of small and large cardamom, export promotion, etc.
→ Small Cardamom is Indigenous to the evergreen forests of Western Ghats of South India.
(Major producers are Kerala, Karnataka and Tamil Nadu)
• Favorable conditions for Small Cardamom: Thick shady areas with adequate
drainage and loamy soil which are usually acidic, elevation: 600 to 1500 m.
→ Large Cardamom is distributed in Sub-Himalayan region of North Eastern India, Nepal
and Bhutan.
• Favorable conditions for Large Cardamom: average precipitation of 3000-3500 mm
spread over about 200 days and temperature ranging from 6-30 degree C.

➢ Recirculatory Aquaculture System (RAS) involves the use of mechanical and biological
filters where the water in the fish culture tanks is recycled and reused after removing
suspended particles and metabolites.
• Biofloc is an environmentally friendly aquaculture technique based on in-situ
microorganism production.

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➢ Central Silk Board (Bengaluru) is a statutory organization under Ministry of Textiles

o India is 2nd largest silk producer in the world with 42% of global production (2023)
o Karnataka produce around 32% of the total silk, followed by Andhra Pradesh.
o India produce all varieties of silk- Mulberry, Eri, Tasar and Muga.

➢ Jute fibre is loosened from the woody core using a microbial process called retting.
• India is the leading jute goods producing country in the world, accounting for about
70% of estimated world production.
• Around 90% of the production is consumed locally.

➢ Primary Agriculture Credit Societies (PACS) are the grassroot level arms of short-term
cooperative credit structure registered under Cooperative Societies Act and are
administered by concerned State Registrar of Cooperative Societies (RCS).
• PACS are outside purview of Banking Regulation Act, 1949 and are not regulated by
RBI.
• Gives short-term credit loans and also provide other input services, like seed,
fertilizer, and pesticide distribution to member farmers.

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➢ Secondary agriculture includes the value addition of primary agricultural products as

well as other agriculture-related activities like beekeeping, poultry farming etc.
• It refers to all practices/processes that convert agricultural produce, residues
and by-products into high value commodities for pharmaceutical, industrial,
medicinal and specified food uses.

➢ Periodic Labour Force Survey (PLFS) was launched in 2017 to estimate key employment
and unemployment indicators.
Key Indicators used in PLFS
• Worker Population Ratio (WPR): Percentage of employed persons in population.
• Labour Force Participation Rate (LFPR): Percentage of persons in labor force (i.e.
working or seeking or available for work) in the population.
• Unemployment Rate (UR): Percentage of persons unemployed among persons in
labour force.
• Activity Status: It is determined on basis of the activities pursued by person during
specified reference period (preceding date of survey).
o Usual Status: Reference period is 365 days.
o Current Weekly Status (CWS): Reference period is 7 days.

➢ A minimum wage is the legally mandated lowest hourly wage an employer can pay, while
a living wage is a higher wage level needed to meet basic needs and achieve a decent
standard of living, including housing, food, and healthcare.
• Presently, India follows the minimum wage, which has remained stagnant since
2017. The Minimum Wages Act, 1948 provides guidelines but does not specify the
minimum wage.

➢ Domestic Systemically Important Insurers (D-SIIs) refer to insurers of such size, market
importance, & domestic and global inter connectedness, whose distress or failure would
cause a significant dislocation in the domestic financial system. They are subject to
additional regulatory measures.
• Insurance Regulatory and Development Authority of India (IRDAI) identified Life
Insurance Corporation of India, General Insurance Corporation of India and New
India Assurance Company as D-SIIs.

➢ Ministry of Commerce and Industry launched Bharat Startup Knowledge Access Registry
(BHASKAR) initiative for India's Startup Ecosystem.
• It is a platform designed to centralize and enhance collaboration among key
stakeholders within entrepreneurial ecosystem like startups, investors, etc.
➢ Angel Tax refers to the income tax that the government imposes on funding raised by
unlisted companies, or startups, if their valuation exceeds the company's fair market
value (FMV).
• In Budget 2024-25, government has announced to abolish the angel tax for all classes
of investors to boost the entrepreneurial spirit and support innovation.
➢ Reverse Flipping involves Indian companies, initially established overseas, strategically
repatriating their legal headquarters back to their home country. E.g. PhonePe.

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B READY INDEX
World Bank (WB) launched the first edition of its Business-Ready (B-Ready) Index.
• The assessment currently includes 50 economies (excluding India).
• It replaces the World Bank's Ease of Doing Business (EoDB) rankings, which was
discontinued in 2021 due to irregularities in data and ethical concerns

➢ India has 3rd largest startup ecosystem after USA and China in the world with 67 unicorn
startups as per Global Unicorn Index 2024 (released by research group Hurun) - In 2023.
• A unicorn startup is a privately held company, without any listing on public
exchanges, valued at $1 billion or more and supported with venture capital.
• Gazelles: Start-ups most likely to ‘go unicorn’ within 3 years.
• Cheetahs: Start-ups most likely to ‘go unicorn’ within 5 years.
Department for Promotion of Industry and Internal Trade (DPIIT), under Ministry of
Commerce & Industry recognize business as a startup. (Refer Infographic)

➢ Patents are territorial rights, only applicable in the country or region in which patent has
been granted.
• Patents Act, 1970 regulate patents in India. (Patent Period: 20 years.)
• 2005 Amendment extended product patent protection to pharmaceuticals and
agricultural chemicals.

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• Non-patentable items: Include plants and animals in whole or any part including
seeds, varieties and species and essentially biological processes for production or
propagation of plants and animals etc.
• Patent Evergreening: In it, companies make slight changes to the formulation to
extend the patent period, guaranteeing their monopoly over the drug.
• Under Compulsory licensing, the government allows someone else to produce a
patented product or process without the consent of the patent owner or plans
using the patent-protected invention itself.
o Compulsory licensing is one of the flexibilities in the TRIPS Agreement.

➢ Global Innovation Index (GII), 2024 was released by the World Intellectual Property
Organization (WIPO), Cornell University and INSEAD Business School.
• India ranked 39th among 133 nations, improving ranking from 40th in 2023.

➢ World Intellectual Property Organization (WIPO) adopted the Treaty on Intellectual

Property, Genetic Resources and Associated Traditional Knowledge

➢ International Intellectual Property (IP) Index released by US Chamber of Commerce

ranked India at 42 out of 55 economies
• Top countries on the index are USA, UK and France.

➢ Asset Monetization (AM) is the process of creating new sources of revenue for the
government and its entities by unlocking the economic value of unutilised or
underutilised public assets such as property, airports, pipelines, etc.

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➢ Russia approves the draft Reciprocal Exchange of Logistics Agreement (RELOS) with
India.
• It would enable the militaries of both countries to access logistics and support
facilities at each other’s bases and ports.
• It would facilitate the replenishment of fuel, rations, spare parts and berthing for
troops, warships and aircraft while operating away from home ports and bases
during the war and peacetime missions.
Other countries with which India has similar agreements are the US, Japan, Australia,
France, Singapore and South Korea.

➢ Logistics Performance Index (LPI) is developed by the World Bank Group and is released
every two years.

PORTS
➢ Vadhvan Port located in Palghar district in Maharashtra, it will be established as the 13th
Major port in the country.
• It will be the country's largest container port and one of India’s largest deep-water
ports.
• India has 12 major ports (13th Vadhvan and 14th Galathea)
• The port will be developed based on the landlord port model.
o Under it, private players take over the operational aspects, while the port
authority acts as a regulator and landlord.
→ The oldest major port of India is the Kolkata port, now renamed as the Shyama Prasad
Mukherjee Port. It is only major riverine port in India.
→ Mumbai port is the largest natural port and harbour in India.
→ Kamarajar port or Ennore port in Tamil Nadu is the only corporatized port registered as
a company.

S.No. West Coast Port State S.No. East Coast Port State
Deendayal Port V. O. Chidambaranar Port
1 Gujarat 8 Tamil Nadu
(Kandla) (Tuticorin)
2 Mumbai Port Trust Maharashtra 9 Chennai Port Tamil Nadu
Jawaharlal Nehru Port
3 Maharashtra 10 Kamarajar Port (Ennore) Tamil Nadu
Trust (JNPT)
4 Mormugao Port Goa 11 Visakhapatnam Port Andhra Pradesh
5 New Mangalore Port Karnataka 12 Paradip Port Odisha
Syama Prasad Mookerjee
6 Cochin Port Kerala 13 West Bengal
Port (Kolkata)
Galathea Port (Galathea Andaman and
7 Vadhavan Port Maharashtra 14
Bay) Nicobar Islands

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➢ Mormugao Port (Goa) is India’s first port to introduce Green Ship Incentives (Harit Shrey
scheme)
➢ Land Port Authority of India is a statutory body under Department of Border
Management, Ministry of Home Affairs.
o Land Ports are areas on international borders notified as land customs stations or
immigration check posts, with facilities for clearance and transport of passengers
and goods.

E-commerce models
(i) Inventory Based Model: In it, Inventory of goods and services is owned by an e-commerce
entity and is sold to the consumers directly. In India, FDI is not permitted in this model.
(ii) Marketplace Based Model: In it, an e-commerce entity provides an information
technology platform to connect or act as a facilitator between buyers and sellers. E.g.
Amazon 100% FDI under automatic route is permitted.

➢ Open Network for Digital Commerce is a public technology initiative launched by the
Department for Promotion of Industry and Internal Trade, to foster decentralized open
e-commerce model and is led by a private non-profit Section 8 company.
• ONDC is a communication protocol, not a central mediator or intermediary. It
facilitates interaction between buyers and sellers on different platforms by using
standardized APIs

➢ Competition Commission of India (CCI) was established in 2009 under the Competition
Act, 2002.
• Composition: Chairperson and 6 Members appointed by the Central Government.
• Functions: Preventing practices having adverse effect on competition; Promoting and
sustaining competition in markets; protecting consumers’ interest; Ensuring freedom
of trade.

COAL
Coal is a readily combustible, black or brownish-black sedimentary rock, predominantly made
of carbon.
• The precursor to coal is peat. Peat is a soft, organic material consisting of partly
decayed plant and mineral matter.

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Types of coal found in India

1. Anthracite is the highest grade of coal containing a high percentage of fixed carbon.
2. Bituminous is a medium grade of coal having high heating capacity. It is the most
commonly used type of coal for electricity generation in India.
3. Subbituminous: It is black in colour, dull (not shiny) and has a higher heating value
than lignite.
4. Lignite: It is the lowest grade coal with the least carbon content.
The top three states with highest coal reserves are Odisha, Jharkhand, Chhattisgarh.

➢ Polymetallic nodules are small, potato-shaped lumps of minerals found on the seabed,
containing high concentrations of metals like manganese and iron.
➢ Bio-Economy is knowledge-based production and use of biological resources, processes
and methods to provide goods and services in a sustainable manner.
• Important sectors are: Bioindustrial, Biopharma, Bioagriculture etc.

➢ Steel is an alloy of iron and carbon containing less than 2% carbon and 1% manganese
and small amounts of silicon, phosphorus, sulphur and oxygen. (with higher carbon
content, it is known as cast iron)
• Steel in the world is the largest carbon-emitting manufacturing sector.

➢ Indian National Space Promotion and Authorization Centre (IN-SPACe): Autonomous

agency under Department of Space (DoS) that helps private companies participate in
India's space sector.
➢ New Space India Limited (NSIL) is Schedule 'A' Category Company under DoS set up in
2019, to handle the commercial activities of ISRO

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➢ Index of Eight Core Industries is released by the Office of the Economic Adviser (DPIIT),
Ministry of Commerce & Industry, measures the combined and individual performance
of production of eight core industries
• Eight core industries are Fertilizers, Cement, Natural Gas, Crude Oil, Coal, Electricity,
Steel, and Petroleum Refinery Products.
• The weightage includes- Petroleum Refinery Products (28.04%), Electricity (19.85%),
Steel (17.92%), Coal (10.33%), Crude Oil (8.98%), Natural Gas (6.88%), Cement
(5.37%), and Fertiliser (2.63%).
• They comprise 40.27% of the weight of items included in the Index of Industrial
Production (IIP).

GOLD
• Leading exporters (2022): Switzerland, United States, United Arab Emirates.
• Leading importers (2022): Switzerland, China, United Arab Emirates, United Kingdom,
and India.
• Top producers: China followed by Australia, Russia, Canada and USA.
• In India, largest resources of gold are located in Bihar (44%) followed by Rajasthan
(25%), Karnataka (21%).
• India is the 2nd largest consumer after China
Why some of the leading exporters are also importers? Import- Refine - Export

➢ Nidhi Company registered under Companies Act, 2013 is regulated by Ministry of

Corporate Affairs
• The objective of Nidhi Companies is to cultivate the habit of thrift and savings
amongst its members.
• It receives deposits from, and lends to, its members only, for their mutual benefit.
• It should have at least two hundred members and Net Owned Funds of ten lakh
rupees or more.

➢ ISI Mark developed by Bureau of Indian Standards (BIS), assuring of product quality and
safety. is mandatory for certain products to be sold in India, such as electrical appliances
(like switches, motors, heaters, kitchen appliances), cement, automobile accessories,
medical equipment, steel and iron products, toys etc.
➢ Digital Bharat Nidhi was established through the Telecommunications Act, 2023 for
funding telecom schemes in underserved remote/rural areas at affordable prices. It
replaced the Universal Service Obligation Fund (USOF) created under the erstwhile
Indian Telegraph Act, 1885.

Basel Norms
Basel Norms are a set of measures developed by the Basel Committee on Banking
Supervision to strengthen the regulation, supervision, and risk management of banks
Implementation of Basel Norms in India
(i) Basel I Adoption: RBI adopted Basel I in 1998-99 to raise CRAR.

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(ii) Basel II Guidelines: RBI announced final guidelines for Basel II in 2007.
(iii) Basel III was fully adopted by October 2021.
• RBI's norms are stricter and more prudent than Basel norms.
Important Terminologies related to Basel Norms
• Tier I capital (Core Capital) include paid up share capital, stocks and disclosed
reserve.
• Tier II capital (Supplementary Capital) includes all other capital e.g.
Undisclosed/revaluation/loss reserves; general provisions etc.
• Risk weighed Assets (RWA) is linked to minimum amount of capital that banks must
have relative to bank’s risk from its lending activities. The more the risk, the more the
capital needed to protect depositors.
• Leverage ratio: It shows how much of a company's capital comes from debt, or how
well it can meet its financial obligations.
• Liquidity Coverage Ratio (LCR) requires banks to maintain a buffer of easily
liquefiable assets to cover potential withdrawal demands over 30 days.
• Net Stable Funding Ratio (NSFR) promotes resilience by creating incentives for banks
to fund their activities with more stable sources.
• Countercyclical Buffer is a mechanism that allows banks to build up capital during
periods of excessive credit growth to help the absorb losses during downturns.

➢ State Bank of India, HDFC Bank and ICICI Bank continue to be identified as Domestic
Systemically Important Banks (D-SIBs) in the RBI’s 2024 list.
• Banks having size as a percentage of GDP equal to or more than 2% are considered
for D-SIB list.

Wholesale Price Index (WPI)

It captures the average movement of wholesale prices of goods and is primarily used as a
GDP deflator. (Base Year: 2011-12)
• Released by: Office of the Economic Current
Index
Adviser, Department for Promotion of Base Year
Industry and Internal Trade, Ministry of Wholesale Price Index (WPI) 2011-12
Commerce & Industry (Index of 8 Core
Consumer Price Index (CPI) (Rural,
Industries is also released by OEA) 2012
Urban, Combined)
Composition:
(I) Primary Articles (22.62%) include CPI for Industrial Workers (CPI-IW) 2016
Food Articles and Non-Food Articles CPI for Agricultural Labourers (CPI-
1986-87
(II) Fuel and Power (13.15%): Tracks AL/RL)
price movements in petrol, diesel, Index of Industrial Production (IIP) 2011-12
and LPG.
(III) Manufactured Products (64.23%)

Producer Price Index (PPI) measures the average change in the price a producer receives for
his goods/services sold in the domestic market/ exports.
Two types:
(I) Output PPI: Measures the average price change of all covered goods and services
resulting from an activity and sold on the domestic/ export markets.

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(II) Input PPI: Measure the change in the prices of all intermediate inputs used in
production by a specified sector of the economy.
Need to replace WPI by PPI
• Multiple Counting Bias: WPI has inbuilt bias due to double/ multiple counting of same
product.
• Exclusion of Services: WPI also excludes the service sector (about 55% of GDP).
• Exclusion of taxes: News WPI (2011-12) series considers only basic prices and does
not include taxes, rebate/trade discounts, transport and other charges.
• Advantages of PPI: Cover services; exclude indirect taxes among some, International
Prominence of PPI being used by advanced economies like U.S.A. etc.

Consumer Price Index (Base Year: 2012) measures price changes at the consumer level.
• Published by: National Statistics Office (NSO), Ministry of Statistics and Programme
Implementation and covers goods and services consumed by households.
• Measurement: The weights of the CPI basket are based on the average household
expenditure taken from the Consumer expenditure survey

REGIONAL RURAL BANKS (RRBS)

They are Scheduled Commercial Banks (Government Banks) regulated by RBI and supervised
by National Bank for Agriculture and Rural Development (NABARD).
• Shareholding: Government of India (50%), State Government (15%), and Sponsor
Bank (35%).
• Created primarily for rural areas, may also set up branches in urban areas.
• The RBI has set a Priority Sector Lending (PSL) target of 75% of total outstanding
advances for RRBs as against 40% for Scheduled Commercial Banks.
• The area of operation of the RRBs is limited to few notified districts in a State.

➢ India Post Payment Bank (IPPB), established in 2018 under the Department of Posts,
Ministry of Communication with 100% equity owned by the Government of India.
• Services offered: Saving/Current account, Direct Benefits Transfers, Bill and Utility
Payments, access to 3rd Party products such as loans, insurance, etc.

➢ Payments banks ( Recommended by Nachiket Mor committee) can accept demand

deposits in the form of saving and current accounts but cannot accept time and NRI
deposits.
• These banks cannot issue loans and credit cards. However, they can issue ATM cards
or debit cards and provide online or mobile banking services.

➢ RBI Governor is appointed by the Central Government as per the Reserve Bank of India
(1934) Act. (Currently Sanjay Malhotra)
• Sir Osborne Smith (1937) was the first Governor of the Reserve Bank.
• Chintaman Dwarkanath Deshmukh (1943-49) was the first Indian Governor of RBI.
• Holds office for term not exceeding 5 years or as the Central Government may fix but
eligible for reappointment.

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➢ Foreign Currency Non-Resident (Bank) [FCNR (B)] account is a term deposit account that
can be opened by Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) in any
permitted foreign currency which is freely convertible
➢ Fiscal Health Index (FHI) Report 2025 is released by NITI Aayog to throw light on fiscal
status of the states
➢ Gross fiscal deficit is a measure of how much the government needs to borrow.
o Formula: Gross fiscal deficit = Total expenditure – (Revenue receipts + Non-debt
creating capital receipts)
Revenue deficit represents the shortage of Government's funds to maintain daily affairs.
o Formula: Revenue deficit = Total Revenue expenditure – Total Revenue receipts

GOVERNMENT SECURITIES (G-Sec)

G-Sec is a tradeable instrument issued by the Central or State Governments acknowledging
the Government’s debt obligation.
o Issued by: RBI through an auction on its electronic, E-Kuber platform.
Types of G-Sec
1. Short term with original maturities less than a year. E.g., T-Bills
• Treasury Bills (T-bills) are Zero coupon securities and pay no interest as these are
issued at a discount and redeemed at the face value at maturity.
o Issued in 3 tenors, namely, 91 day, 182 day and 364 day.
• Cash Management Bills (CMBs): Short-term (maturities less than 91 days) instrument
to meet the temporary mismatches in its cash flows.
2. Long Term, with original maturity of one or more year. E.g., Government Bonds or
Dated Securities.
• Dated G-Sec: They carry a fixed or floating interest rate paid on the face value, on
half-yearly basis, with maturities ranging from 5 to 40 years.
• State Development Loans (SDLs) are dated securities issued by State Governments
with half-yearly interest payments.
NOTE: In India, the Central Government issues both T-Bills and bonds or dated securities
while the State Governments issue only bonds or dated securities, called the State
Development Loans (SDLs).

➢ Sovereign Bond is a specific debt instrument issued by the government that promises to
pay the buyer a certain amount of interest for a stipulated number of years and repay
the face value on maturity.
• Bond Yield is the interest rate that the Issuer/government pays on issuing bonds.
It is a return realized by a bond investor.
• Price and yield are inversely related. As the price of a bond goes up, its yield
goes down. Conversely, as the yield goes up, the price of the bond goes down.

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➢ Cess is a form of tax levied by government on tax with specific purposes till the time the
government gets enough money for that purpose. Ex - Education cess, Health cess etc.
• They are typically imposed in addition to existing taxes and may be fixed or
calculated ad valorem (percentage-based).
Surcharge is an additional tax imposed on existing duties and taxes, essentially a tax on
tax.
• Unlike a cess, a surcharge does not require a specific purpose at the time of levy.
The Union has discretion over the use of proceeds.
Both, Surcharge and Cess are credited to the Consolidated Fund of India and usually not
shared with states.

➢ Principal Purpose Test is a part of international tax rules aimed at preventing misuse of
tax treaties.
• It is an anti-abuse provision which aims to deny treaty benefits if it’s reasonable to
conclude that one of the principal purposes of the arrangement or transaction was
to benefit directly or indirectly from that treaty unless the granting of the benefit was
in accordance with the object and purpose of the treaty.
• It is a key provision under the Multilateral Convention to Implement Tax Treaty
related provisions to prevent BEPS

➢ Gender budgeting is not about creating separate budgets for women. Instead, it's a
process of analysing government budgets and policies through a gender lens to assess
their differential impact on women and men, girls and boys.

CENTRAL BANK DIGITAL CURRENCY

US President issued an executive order for banning the establishment of USA’s Central Bank
Digital Currency (CBDC), i.e., 'Digital Dollar'.
Digital Currency is money that is exclusively available only in digital or electronic form.
• They are generally handled, preserved and exchanged using digital computer
systems, connected to Internet.
• A digital currency can be distributed with a condition programmed into it such as a
time-fame for spending it.
CBDC is a legal tender and a central bank liability in digital form denominated in
sovereign currency and appearing on central bank balance sheet. (RBI)

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India's Digital Rupee (e₹) is a digital form of fiat currency, issued and regulated by the RBI.
• It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with
its monetary policy.
• It is currently in pilot mode (ongoing with 15 Banks), since December 2022, to test
and explore the uses/ features/ technology and applications of Digital Rupee.
• It is available in the same denominations as physical currency.
• It is legal tender and is liability of Reserve Bank of India (Section 26 of the Reserve
Bank of India Act, 1934).
• It is freely convertible against commercial bank money and cash.

➢ Sand Dollar: Bahamas became the first country to launch CBDC in 2020.

➢ mBridge is a cross-border, decentralised, multiple central bank digital currency

(mCBDC) platform.
• A platform based on a new blockchain ‘the mBridge Ledger’ was also built to support
real-time, p2p cross-border payments and foreign exchange transactions.
• It is built on distributed ledger technology (DLT) - a decentralized ledger network
that uses the resources of many nodes to ensure data security and transparency.
Participants: Initially led by the BIS Innovation Hub, in collaboration with the other four
central banks of China, Thailand, the United Arab Emirates (UAE) and Hong Kong.
o Saudi Central Bank joined in 2024.
o There are more than 31 observing members including Reserve Bank of India.

➢ Permanent Account Number PAN) is a ten-digit unique alphanumeric number issued by

the IT Department to identify/ link transactions (tax payments, etc.) of the holder with
the department.
• Issuing Agencies: Protean (formerly known as NSDL e-governance) and UTI
Infrastructure Technology and Services Ltd (UTIITSL).

➢ Rupee Depreciation refers to the decline in the value of the Indian Rupee (INR) relative
to a foreign currency, typically the US Dollar (USD) or other major global currencies.
• Currently, India follows Floating Exchange Rate with occasional RBI interventions.

➢ Nominal Effective Exchange Rate (NEER) is the weighted average of bilateral nominal
exchange rates of the home currency in terms of foreign currencies.
o An increase in NEER indicates an appreciation of the local currency against the
weighted basket of currencies of its trading partners.
Real Effective Exchange Rate (REER) is defined as a weighted average of nominal
exchange rates adjusted for relative price differential between the domestic and foreign
countries.
o An increase in REER implies that exports become more expensive and imports
become cheaper. An increase indicates a loss in trade competitiveness.
• REER = NEER × (Domestic Price Index / Foreign Price Index)
➢ India secured 14.3% of Global Remittances in 2024, highest share ever (World Bank)
• Top five recipients in 2024: India, Mexico, China, Philippines, and Pakistan.

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➢ Liberalised Remittances Scheme introduced by RBI in 2004.

• Benefit: All resident individuals, including minors, are allowed to freely remit up to
USD 2,50,000 per financial year for any permissible current or capital account
transaction or a combination of both.
• There are no restrictions on the frequency of remittances under it.
• The Scheme is not available to corporates, partnership firms, Hindu Undivided
Family (HUF), Trusts etc.

➢ Most Favoured Nation (MFN) principle underlines that countries cannot normally
discriminate between their trading partners.
• In simple words, if any country grants someone a special favour (such as a lower
customs duty rate for one of their products) then it has to do the same for all other
WTO members.

➢ India is the 2nd highest ICT services exporter in the world, behind Ireland (2023).

➢ in 2015, the Base Year for GDP Calculation was changed from 2004-05 to 2011-12.
• In the new series, Central Statistics Office (CSO) did away with Gross Domestic
Product (GDP) at factor cost, and adopted the international practice of valuing
industry wise estimates as Gross Value Added (GVA) at basic prices.

➢ International Comparison Program (ICP) is a worldwide statistical initiative to collect

comparative price data and detailed GDP expenditures to produce PPPs for the world’s
economies.
• It is coordinated by the World Bank under the auspices of the United Nations
Statistical Commission

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➢ Purchasing Power Parities (PPP) is the exchange rate at which one nation's currency
would be converted into another to purchase the same amounts of a large group of
products. It is used to determine the relative value of different currencies
• In PPP terms, China was the largest economy in 2021, followed by US
• India’s economy ($11.0 trillion) was the third largest (7.2% of Global GDP).
o On the basis of GDP ranking, India is 5th largest economy at present.

➢ The National Sample Survey Office (NSSO) released the results of the Household
Consumption Expenditure Survey (HCES) 2023-24
Average Monthly Per Capita Expenditure (MPCE):
o Rural: ₹4,122 (₹4,247 with imputed benefits), increased by 9% from 2022-23.
o Urban: ₹6,996 (₹7,078 with imputed benefits),
MPCE is highest in Sikkim and lowest in Chhattisgarh.
Major Surveys Conducted by NSSO:
o Household Consumption Expenditure Survey
o Periodic Labour Force Survey
o Annual Survey of Industries
o Situation Assessment Survey of Agricultural Households.

➢ Anna Chakra is a Public Distribution System (PDS) Supply Chain optimization tool that
leverages advanced algorithms to identify optimal routes and ensure seamless
movement of food grains.
• It is an initiative of the Department of Food Public Distribution developed in
collaboration with the World Food Programme (WFP) and IIT-Delhi.
• It is Integrated with the PM Gati Shakti platform and FOIS (Freight Operations
Information System) portal of the Railways through the Unified Logistics Interface
Platform (ULIP).
➢ SCAN (Subsidy Claim Application for NFSA) portal : Aims to provide a single window
submission of subsidy claims by states, claim scrutiny and approval by DFPD facilitating
expeditious settlement process through end-to-end workflow automation.

➢ Public Distribution System (PDS) is the world’s largest food distribution program.
• Operated under joint responsibility of Centre and States:
• Centre (through FCI): Procurement, storage, transportation and bulk allocation.
• States: Operational responsibility including allocation within State, identification of
eligible families, issuing of Ration Cards and supervision of FPSs.

➢ (Rubber Tree) is native of the Amazon river basin.

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➢ National Turmeric Board (NTB) under Ministry of Commerce and Industry is

headquartered at Nizamabad, Telangana (a major turmeric-producing region).
• NTB is an executive body (not a Statutory Body).
➢ Turmeric (Curcuma longa); also called ‘Golden Spice’ is Perennial, rhizomatous
herbaceous plant native to the Indian subcontinent and Southeast Asia.
• India is the largest producer, consumer, and exporter of turmeric accounting for
70% of global production & 62% of global trade.
• The largest producing states of Turmeric: Maharashtra, Telangana, Karnataka
• More than 30 varieties of Turmeric are grown in India a
• Major varieties with GI (Geographical Indication) Tags: Erode Turmeric (Tamil
Nadu), Lakadong Turmeric (Meghalaya, known for high curcumin content),
Kandhamal Haldi (Odisha).

➢ Coffee Production: India is eighth largest coffee producer globally in 2022-23. (Brazil is
largest contributing about 40% of global production)
• Mainly produced in Karnataka (highest), Kerala, Tamilnadu, Andhra Pradesh and
Odisha.
• Arabica is superior in quality to Robusta but Robusta coffee accounts for 72% of
country's total coffee production.

➢ Equine Piroplasmosis disease is caused by tick-borne protozoan parasites, affects

horses, donkeys, mules, and zebras.
➢ Logistics Ease Across Different States (LEADS) 2024’ Report has been released by the
Ministry of Commerce and Industry.
➢ SMILE Program is a programmatic policy-based loan (PBL) by ADB to support the
government of India to undertake wide ranging reforms in the logistics sector.
• India and Asian Development Bank (ADB) recently signed a $350 million policy-
based loan under the second subprogram of SMILE (Strengthening Multimodal and
Integrated Logistics Ecosystem) program.

➢ “Midgets making widgets” phenomenon: Firms setting up multiple factories (multi-

plants) in the same state instead of expanding a single large factory.
➢ Manufacturing Sector in India accounts for 77.6% of total Industrial Production in Index
of Industrial Productions (around 17% of GDP)
➢ Receivables securitization is a financial process where companies convert their
accounts receivable into cash by selling them as securities in the capital markets.
➢ TReDS (Trade Receivables Electronic Discounting System) is an electronic platform for
online discounting of bills of MSMEs for supplies to large Corporates. It facilitates the
discounting of both invoices as well as bills of exchange.
➢ ISHAN (Indian Single Sky Harmonized Air Traffic Management) Initiative by Airports
Authority of India (AAI) involves Combining India's four airspace regions (FIRs) into a
single system overseen from Nagpur

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➢ India is top producer of milk (23% of Global share in 2022) and second largest producer
of sugarcane and fisheries.

MSMEs
In India MSMEs contributes around 30% to India's GDP, ~46% of India’s total exports.

Pradhan Mantri Mudra Yojana (PMMY): To facilitate easy collateral-free micro credit of up
to ₹20 lakh.
• A new ‘Tarun Plus’ category has been created for loans above Rs. 10 lakh and upto
Rs. 20 lakh.

World Economic Forum

Headquartered in Cologny near Geneva, Switzerland
Key Initiatives:
• The First Movers Coalition: A
Important Reports by WEF
global coalition of companies Future of Jobs Report Energy Transition Index
working to scale the innovative Global Competitiveness Global Travel and Tourism
technologies needed to Report Report
decarbonize the world's heavy- Global Gender Gap Report Global Risks Report
emitting sectors.
• EDISON Alliance (for digital inclusion);
• Net-Zero Industry Tracker (to monitor progress on hard-to-abate sectors'
decarbonization) etc.

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➢ Directorate of Revenue Intelligence (DRI) is the apex anti-smuggling agency of India

under Central Board of Indirect Taxes & Customs (CBIC), Ministry of Finance.
Responsibilities:
o Preventing smuggling of contraband, including illegal drug trafficking.
o Detecting illicit international trade in wildlife and environmentally sensitive items.
o Combating commercial frauds related to international trade and Customs duty.

➢ Interest Coverage Ratio (ICR) is a financial ratio that indicates the ability of a firm to
service its outstanding debt.
• It is used by lenders, creditors and investors to determine the riskiness of lending
capital to a company.
• It reflects the short-term financial health and stability of the firm.
• Lower ICR indicates greater debt and higher risk of the company’s bankruptcy and
vice versa.

Restricted Return InvITs

In this model, returns are structured with downside protection (a floor) and/or an upside
cap unlike traditional InvITs, where returns are directly tied to full performance of the
underlying infrastructure assets.
o Downside protection: If the InvIT's returns fall below guaranteed minimum,
sponsors must provide funds to ensure unitholders receive a baseline return.
o Upside cap: If the InvIT's returns exceed a threshold, excess will go to the sponsor.

HAPPY STUDIES :-)

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