Professional Documents
Culture Documents
Economics 2024 Handouts
Economics 2024 Handouts
Economics 2024 Handouts
Table of Contents
Agriculture
Genetically Modified (GM) crops – cotton, mustards, etc. 10
Food Procurement and Distribution 11
Organic Farming 12
GI(Geographical Indicator) Tags 12
Minimum Support Prices for Agricultural Produce 14
Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc. 14
Agricultural Sector and Marketing Reforms 15
Animal Husbandry, Dairy & Fisheries Sector 16
Water Management – Institutional Reforms, Conservation Efforts, etc. 16
Industries
Innovation Ecosystem in India 27
Road and Highway Safety – National Road Safety Policy,
Good Samaritans, etc. 27
Intellectual Property Rights in India 27
Coal and Mining Sector 27
Make in India: Challenges & Prospects 28
Food Processing Industry: Issues and Developments 28
Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc. 28
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Infrastructure
Renewable Energy – Wind, Tidal, Geothermal, etc. 30
Electric and Hybrid Cars – FAME, National Electric Mobility Mission, etc. 30
Oil and Gas Sector – HELP, Open Acreage Policy, etc. 30
Roads, Highways, Cargo, Air-Cargo and Logistics
infrastructure – Bharatmala, LEEP, SetuBharatam, etc. 31
Telecom and Postal Sector – Spectrum Allocation,
Call Drops, Predatory Pricing, etc 31
Urban Transformation – Smart Cities, AMRUT, etc. 33
Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc. 35
e-Commerce: The New Boom 36
Railway Reforms 36
Energy
Renewable Energy – Wind, Tidal, Geothermal, etc. 37
Biofuel Policy 37
UDAY Scheme for Discoms 37
Oil and Gas Sector – HELP, Open Acreage Policy, etc. 38
Coal and Mining Sector 38
Sugar Industry – FRP, SAP, Rangarajan Committee, EBP, MIEQ, etc. 39
Foreign Policy Watch: India-Bangladesh 39
Nuclear Energy 39
External Sector
Trade Sector Updates – Falling Exports, TIES, MEIS,
Foreign Trade Policy, etc. 41
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Agriculture
Pusa-44 Paddy: Punjab bans PUSA-44 paddy variety • Developed by ICAR in 1993, it gained wide
popularity in Punjab • Covered 70-80% of cultivation area by the end of 2010s • Yields 85-100 mann
(34-40 quintals) per acre compared to 28-30 quintals for other varieties • 160 days to mature, requiring
5-6 extra irrigation cycles • Aim to conserve irrigation water and address groundwater depletion • Exac-
erbates stubble burning issue, generating 2% more stubble • ICAR is an autonomous organization under
the Ministry of Agriculture and Farmers Welfare • Established on July 16, 1929, to coordinate and manage
agricultural research and education • Oversees 113 ICAR institutes and 71 agricultural universities across
India • Headquarter: Pusa, New Delhi.
The Indian Express
Pusa-2090: IARI developed Pusa-2090, an improved Pusa-44 version with similar yields and shorter
maturity • Cross between Pusa-44 and Japonica rice line CB-501, early-maturing rice in 120-125 days
• Blends Pusa-44’s high yield traits with CB-501’s quick maturation, addressing stubble burning concerns
• Tested in All-India Coordinated Rice Improvement Project, it’s suitable for cultivation in Delhi and Odis-
ha • Pusa-44, an IARI long-duration paddy variety, contributes to stubble burning • 155-160 day growth
cycle leads to late October maturity, forcing stubble burning due to short field preparation time • High
yields (35-36 quintals per acre) make it popular among farmers.
The Indian Express
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Open Market Sale Scheme (OMSS): Centre to procure rice from the FCI under the
OMSS for consumer sales • OMSS aims to sell government-owned wheat and rice in the open market,
enhancing supply and moderating prices during lean seasons and in deficit regions • Implementing Agen-
cy: Food Corporation of India (FCI) • Components:1) Sale of wheat to bulk consumers/private traders via
e-auction • 2) Sale of wheat through e-auction with dedicated movement • 3) Sale of Raw Rice Grade ‘A’
to bulk consumers/private traders via e-auction • Sales are conducted through e-auctions for transpar-
ency, held weekly on the NCDEX platform • States /UTs and private entities can participate in e-auctions
• States use OMSS to procure additional food grains for distribution under the National Food Security Act,
2013 (NFSA) • About Food Corporation of India (FCI): Established in 1965 under the Food Corporation
Act, 1964, as part of the Ministry of Consumer Affairs, Food and Public Distribution, Government of India
• Created in response to grain shortages, particularly wheat.
The Hindu
Annapurna Food Packet Scheme: Rajasthan launched the Scheme • Over 1.04 crore
families in the state to receive free food packets monthly • Ensures no one sleeps hungry in the state
• Each packet contains: 1 kg Chana dal, sugar, iodized salt, 1 litre soybean refined edible oil, 100g chilli
powder, 100g coriander powder, and 50g turmeric powder • Distributed via POS machines to address
NFSA limitations • About 32 lakh NFSA and non-NFSA families received Rs 5500 during Covid pandemic
• Non-NFSA families also to benefit from Annapurna Ration Kit Scheme • Ration dealer commission in-
creased from Rs 4 to Rs 10 per packet • Ration dealers exempted from fees without POS machines.
The Hindu
PM Garib Kalyan Anna Yojana (PMGKAY): Extended for 5 more years • Initiated in
March 2020 during the COVID-19 pandemic • Operated by Department of Food and Public Distribution,
Ministry of Consumer Affairs • World’s largest food security program, aims to feed India’s poorest citi-
zens • Provides 5 kg of rice (Rs 3 per kg) or wheat (Rs 2 per kg) (based on dietary preferences) and 1 kg of
pulse per person/month at Central Issue Prices (CIPs) • Benefits priority households, including ration card
holders and Antyodaya Anna Yojana beneficiaries • National Food Security Act (NFSA), 2013 offers highly
subsidized rates • NFSA includes: Midday Meal Scheme, Integrated Child Development Services (ICDS)
scheme and the Public Distribution System (PDS).
The Hindu
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Bharat Atta: Subsidized packaged wheat flour, Bharat Atta, for all consumers • Price reduction
of ₹2 per kg, making it ₹27.50 from ₹29.50, benefits regular consumers • Retail sales to boost market
supplies at affordable prices, ensuring price stability • Procurement under Open Market Sale Scheme
(OMSS): NAFED and NCSS will procure 250,000 tonnes of wheat at ₹21.50 per kg • Available at: Kendriya
Bhandar, NAFED, NCCF, government cooperative outlets, and food vans operated by NAFED and NCCF.
The Hindu
Organic Farming
Kerala Organic Farming Mission: To expand organic farming to 5,000 hectares in 5 years
• Annual target: Convert 1,000 hectares to organic farming each year • Governance structure includes
a governing council chaired by Agriculture Minister • Beneficiaries commit to at least 5 years of organic
farming • Focus on enhancing certification, branding, and marketing • Implement organic farming pro-
tocols aligned with standards • Ensure access to quality seeds and production equipment • Collective
channels: Karshika Karma Sena, Kudumbasree, Krishisree Centre, Agro Service Centres • Complements
Poshaka Samriddhi Mission dedicated to millet and vegetable production for sustainable agriculture.
The Hindu
Chokuwa Saul Rice gets GI Tag: Rice from Assam’s Ahom dynasty obtains GI tag
• Semi-glutinous Sali Rice with Bora and Chokuwa variants • Low in amylose, yields soft Komal Chaul rice
• Needs soaking, not cooking before consumption • Used in delicacies like Pithe and local dishes in As-
sam • Mainly grown in Brahmaputra region and parts of Assam: Tinsukia, Dhemaji, Dibrugarh, Lakhimpur,
Sivasagar, Jorhat, Golaghat, Nagaon, Morigaon • GI Nodal Agency: Department for Promotion of Industry
and Internal Trade (DPIIT), Ministry of Commerce and Industry • Defined under Article 22 (1) of the WTO
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement • 10 years validity.
The Times Of India
Basmati Rice: Native to the Himalayan foothills in India and Pakistan, is a fragrant, long-grain
rice variety • Known for its slender grains that elongate during cooking and a natural aromatic fragrance
• Different varieties: Basmati 370, Basmati 386, and Basmati 1121 • GI tags for origin and quality • Pusa
Basmati-1 (PB-1) in 1989 improved traits and boosted exports • PB-1121 in 2003 had exceptional grain
quality, gaining popularity • PB-1509 combined yield potential and grain quality with a shorter crop cycle
in 2013 • Disease-resistant varieties: PB-1885 and PB-1847 to maintain rice quality.
The Indian Express
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Goan Cashew gets GI Tag: Swayampurna Goa mission’s objectives aligns the GI Tag • Intro-
duced by Portuguese in 1570, cashew became economically valuable • Planted for afforestation and soil
conservation back then • Evolved from a cottage industry to a major contributor to Goa’s economy, es-
pecially due to US demand • Well-drained sandy loam soils are ideal for cashew cultivation • Suitable for
Indian coastal regions with 60-95% humidity and 2000-3500 mm annual precipitation • GI Nodal Agen-
cy: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
• Defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS) Agreement • 10 years validity.
The Indian Express
GI tag for Sea Buckthorn: ‘Ladakh Sea Buckthorn’ has been granted a Geographical Indica-
tion (GI) tag • Fourth GI tag for Ladakh, following Apricot (Raktsey Karpo), Pashmina, and Ladakhi Wood
Carving • Found in Europe and Asia, thrives in the Himalayas, notably in Ladakh and Spiti’s cold deserts
• Yellow berries Vitamin-rich, sour orange • Adaptable to extreme temperatures, it’s well-suited for cold
desert conditions • All parts of the plant are useful: berries, leaves, twigs, roots, and thorns for medicine,
food, fuel, and fencing • Provides food for birds and nutritious fodder for livestock like sheep, goats,
donkeys, cattle, and camels • Known as the ‘Wonder Plant,’ ‘Ladakh Gold,’ ‘Golden Bush,’ or ‘Gold Mine’
of the cold deserts • GI Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT),
Ministry of Commerce and Industry • Defined under Article 22 (1) of the WTO Agreement on Trade-Relat-
ed Aspects of Intellectual Property Rights (TRIPS) Agreement • 10 years validity.
CD
Recent GI tags awarded: Jaderi Namakatti: White clay sticks used for adorning idols, men,
and temple elephants in Jaderi village, Tamil Nadu • Basohli Pashmina: Super soft, fine, lightweight ma-
terial from Jammu and Kashmir’s Kathua district, made from Capra hircus mountain goats’ wool • Marcha
Rice: Grown in select West Champaran district blocks, Bihar, known for unique aroma and taste, cultivat-
ed by Marcha Dhan Utpadak Pragatisheel Samuh • Atreyapuram Pootharekulu: Traditional sweet from
Atreyapuram village, Andhra Pradesh, featuring paper-thin rice flour sheets coated with ghee and filled
with jaggery or sugar dust, may include dry fruits like pistachios and almonds, made from MTU-3626 rice
variety.
The Hindu
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Fertilizer Subsidy: Centre revised subsidy rates by nutrient type and period • Three main fertil-
izers: Urea, Diammonium Phosphate (DAP), and Muriate of Potash (MOP) • Urea: Most produced (86%),
consumed (74%), and imported (52%) • Urea receives largest subsidy (around 70% of total) • DAP and
MOP based on Nutrient Based Subsidy (NBS) formula (N, P, K in 4:2:1 ratio) • Initiated during Green Rev-
olution for agricultural productivity • Benefit reaches farmers, lowering market fertilizer prices • DBT
system since March 2018 implemented nationwide • Subsidy payments to companies made post-sales
through retailers • Retailers use PoS machines linked to Fertilizers’ e-Urvarak DBT portal • Example:
Neem-coated urea MRP set at Rs 5,922.22 per tonne, while production costs Rs 17,000 per tonne • Cen-
tral bears cost difference through subsidies.
Business Stan
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Urea Gold: PM launched “Urea Gold” in Sikar, Rajasthan • Urea infused with 17% Sulphur (S), 37%
nitrogen (N) • Procote Technology adds micronutrient coating for efficacy • Addresses S deficiency, low-
ers farmers’ costs • Urea Gold more economical and efficient than Neem-coated urea • Normal urea has
46% Nitrogen (N) • Sulphur-coated urea releases nitrogen gradually, aids crop uptake • Humic Acid in
Urea Gold extends fertilizer life • 15 kg Urea Gold = benefits of 20 kg conventional urea.
The Indian Express
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to create 68 lakh employment opportunities by 2024-25 • Part of ‘Atma Nirbhar Bharat’ package with
a record investment of Rs 20,050 crores • Supports fishermen with insurance, financial assistance, and
Kisan Credit Cards • Insurance coverage to 31.47 lakh farmers across 22 states and 7 UTs • Umbrella
scheme with 2 components: Central Sector Scheme and Centrally Sponsored Scheme • Focuses on rural
development and aims to transform the fisheries sector • Fisheries seen impressive growth, with a 14.3%
increase from 2019-20 to 2021-22 • Fish production reached a record high of 161.87 lakh tons in 2021-22
• Exports of fish and seafood reached 13.64 lakh tonnes, valued at Rs 57,587 crore • Exports go to 123
countries, including China, Japan, the United States, and others.
The Hindu
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RBI Notifications
Gold Reserves of RBI: India’s Forex Reserves comprise 1.Gold Reserves 2.Special Drawing
Rights(SDR) 3.Foreign Currency Assets(FCA) 4.India’s reserve tranche position with the International
Monetary Fund • Gold is a safer asset being secure and more liquid • Performs better during times of
crisis • RBI is among the top 5 Central Banks that are buying gold (a/c to World Gold Council) • Reserve
Bank of India Act, 1934 provides the overarching legal framework for the deployment of reserves in differ-
ent foreign currency assets and gold.
The Hindu
RBI Surplus Transfer to Govt: RBI approved the transfer of ₹87,416 crore as surplus to
the Union government for the accounting year 2022-23 • Surplus transfer is mandated by Section 47
of RBI Act, 1935 • Two types of reserves are held by the RBI: (1) Currency & Gold Revaluation Account
(CGRA)- value of gold and foreign currency held by the RBI on behalf of India (2) Contingency Fund (CF) –
a provision to meet unexpected contingencies arising from the RBI’s monetary policy and exchange rate
operations • RBI’s surplus is calculated from income minus expenses, including CF provisions • RBI is
exempted from paying income tax or any other tax as per Section 48 of the RBI Act • RBI earns income
from– managing government and state government borrowings, regulating banks and non-banking finance
companies, and managing currency and payment systems, returns on foreign currency assets, interest on
local rupee-denominated government bonds, lending to banks, and management commission for han-
dling government and state government borrowings • Expenditures- include currency printing costs, staff
salaries, commissions to banks, and payments to primary dealers • Y H Malegam Committee (2013) rec-
ommended a higher transfer to the government, increasing the percentage of surplus transferred • Bimal
Jalan Committee (2018) made recommendations on realized equity, Expected Shortfall, Contingent Risk
Buffer, surplus distribution, and periodic review of the Economic Capital Framework.
The Hindu
Public Tech Platform for Frictionless Credit: RBI launches pilot to test ‘Public
Tech Platform for Frictionless Credit’ • Aims to enable smooth credit delivery by sharing digital info with
lenders • Integrates services like Aadhaar e-KYC, land records, satellite data, and more • Developed by
RBI’s subsidiary, Reserve Bank Innovation Hub (RBIH) • Benefits: Reduced costs, quicker loan disbursals,
improved risk assessment • Features open architecture with open APIs • Objective: Efficiently exchange
digital data for credit evaluation • Consolidates data from various sources into a unified repository • Kisan
Credit Card lending feasibility successfully tested.
The Hindu
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UDGAM Portal: RBI launches UDGAM (Unclaimed Deposits – Gateway to Access inforMation)
web portal • To assist public in locating unclaimed deposits across multiple banks easily • Collabora-
tive development by: RBI, ReBIT, IFTAS, and participating banks work together • Facilitates depositors to
search for unclaimed deposits from various banks • Users can claim deposit amount or activate deposit
accounts • Registration using mobile number • Search under depositor’s name with PAN, voter ID, driving
licence, passport inputs • Depositors complete KYC at their respective bank branch to retrieve deposits
• Nominee submits documents if depositor is deceased • Unclaimed deposits inactive savings/current
accounts for 10 years • Unwithdrawn FDs for 10 years post maturity.
The Hindu
UPI-CBDC Interoperability: Means all UPI QR codes work with CBDC apps • Initially, e₹-R
users had to scan specific QR codes for transactions • Now, they can use a single QR code • e₹ is held in
a digital wallet linked to a savings bank account • UPI is directly linked to a customer’s account • Stream-
lines transactions between customers and merchants • Digital rupee users can pay for groceries and
medicines by scanning any UPI QR code • Merchants don’t need a separate QR code for digital rupee
payments • Can accept CBDC payments on their existing QR code • If a merchant has a CBDC account,
the payment goes to the CBDC wallet • If not, payment can be made using UPI.
The Indian Express
Incremental Cash Reserve Ratio (I-CRR): RBI to phase out I-CRR due to liquidity
issues • CRR is a percentage of total deposits (currently 4 • 5%) banks must keep as liquid cash with the
RBI • CRR ensures banks have enough cash for depositor payments and cannot use it for lending or invest-
ments • I-CRR is an additional cash balance imposed by RBI on banks over and above CRR for a specific
period • Introduced to absorb excess liquidity due to various factors • August 2023, RBI mandated a 10%
I-CRR on the increase in banks’ net demand and time liabilities (NDTL) between May 19, 2023, and July 28,
2023 • Excessive liquidity poses risks to price and financial stability • Liquidity turned deficit for the first
time in the current fiscal on August 21 after the I-CRR mandate • Tight liquidity also due to GST outflows
and RBI selling dollars to stabilize the rupee.
The Hindu
RBI’s Forex Swap: Upcoming maturity of a $5 billion forex swap between RBI and banks signals
RBI’s strategic liquidity management and inflation mitigation • A tool for currency exchange with banks
• Two variants: Buy/Sell Swap, where RBI buys/sells dollars for Indian Rupees with commitment to reverse
• Have predetermined terms, reducing exchange rate and market risks • RBI initiated a $5.135 billion
swap with banks, aiming to repurchase dollars at a minimal premium after two years • Banks bidding at
the lower premium range have better auction success • Surplus liquidity of Rs 7.5 lakh crore in the Indi-
an financial system necessitates inflation control measures • Traditional methods like repo rate or CRR
increase may negatively impact the economy • RBI tried Variable Rate Reverse Repo Auction (VRRR) but
faced under-subscription due to better cash market yields • RBI turns to forex auctions as a longer-term
liquidity adjustment tool.
The Indian Express
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‘Risk Weights’ hike by RBI: Refers to cost implication of every rupee lent by banks on their
capital position • Hiked on consumer credit for banks and NBFCs to 125% from 100% • Raises cost of
funds for banks and non-bank financial companies (NBFCs) • Assets are used to calculate the minimum
capital required by banks based on their lending activities’ risk profile • Introduced in India in April 1992,
aligning with Basel Committee‘s Capital Adequacy Norms • Lower risk weights generally lead to lower
interest rates, indirectly affecting borrowers through loan pricing • Increase will raise funding costs for
NBFCs and affect their capital requirements.
The Hindu
Card-on-File Tokenisation (CoFT): RBI has expanded the scope of CoFT services to in-
clude card-issuing banks and institutions, enhancing the security of digital payments • CoFT replaces card
details with a unique token for card, token requestor, and device • Enhances security by not disclosing
actual card details during transactions • Cardholders generally input card details ex. CVV, OTP for each on-
line purchase • CoF transaction authorizes merchants to securely store payment information • Simplifies
checkout process for consumers, providing convenience and efficiency.
Live Mint
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Prepaid Payment Instrument (PPI): Digital payment methods stored value • PPIs can
be issued by banks or authorized entities under the Payment and Settlement Systems Act 2007, in forms
like cards, mobile wallets, or online accounts • PPIs lack protection against fraud or unauthorized trans-
actions • Committee has recommended extending DICGC (Deposit Insurance and Credit Guarantee Cor-
poration) cover to PPIs • It would provide compensation to PPI holders in case of loss due to fraud or
issuer failure, offering them greater security • Many banks and non-bank entities have been permitted
to issue and operate PPIs • DICGC is a specialized division of RBI that provides deposit insurance to bank
customers in India • Deposit insurance covers various types of bank deposits up to a limit of Rs. 500,000
per depositor per bank, increased from Rs. 100,000 in 2020 • Insured banks pay the premium for deposit
insurance, ensuring depositors do not bear the cost • Failure to pay the premium can result in cancella-
tion of a bank’s registration.
The Indian Express
Urban Cooperative Banks (UCBs): RBI Governor addresses UCBs’ issues and vulnerabili-
ties • UCBs serve small borrowers and businesses in urban and semi-urban areas • Operate under: Bank-
ing Regulations Act, 1949, Banking Laws (Cooperative Societies) Act, 1955, and State Cooperative Societies
Act • Initially, UCBs lent for non-agricultural purposes; they diversified since 1996 • About 79% of UCBs
are concentrated in Andhra Pradesh, Gujarat, Karnataka, Maharashtra, and Tamil Nadu • Categorized by
RBI based on deposit size:Tier 1: Deposits up to Rs 100 crore • Tier 2: Deposits Rs 100 to 1,000 crore • Tier
3: Deposits Rs 1,000 to 10,000 crore • Tier 4: Deposits exceeding Rs 10,000 crore.
The Hindu
NPA Crisis
Expected Credit Loss Norms: Banks have sought a one-year extension from RBI for imple-
mentation of the Expected Credit Loss (ECL)-based loan loss provisioning framework • ECL is a method of
accounting for credit risk • It is based on loss likely to occur on a loan or portfolio of loans • Classification
of financial assets: Under the ECL norms, banks will be required to classify their financial assets into three
categories – Stage 1, Stage 2, and Stage 3 • Estimates forward-looking probability of default for each loan.
CD
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SARFAESI Act: RBI directive for Regulated Entities (commercial banks and NBFCs) to disclose bor-
rower information • Disclosure relates to borrowers whose secured assets were repossessed under the
SARFAESI Act • SARFAESI Act, 2002, aims to protect financial institutions from loan defaults • Empowers
banks to seize, manage, or sell collateral without court intervention • Applies nationwide to all types of
assets given as security • Streamlines NPA recovery and enables asset auctions • Applies when a borrow-
er defaults for over 6 months • Lender issues a 60-day notice to clear dues; if not, assets can be possessed
• Defaulters can appeal within 30 days of receiving the notice • Deals with registration of asset recon-
struction companies, asset rights acquisition, reconstruction measures, and dispute resolution.
The Hindu
Germany’s Debt Brake Rule: 2009 policy enshrined in the German constitution • Celebrat-
ed as a victory for fiscal rectitude and a break from past profligacy • Seen as a major mistake in economic
policy, especially in light of recent budget crises • Limits on public deficits seen as too strict • Hinders
government spending in times of crisis • Constitutional court ruling disrupted spending plans; Finance
minister declared 2023 a year of emergency to suspend the debt rule • Risk of destabilizing Germany’s
budgetary system and potential knock-on effects for the eurozone • Crisis in confidence in the state’s
effectiveness; calls for reform or abolishment of the debt brake • Debate over the flexibility of the debt
brake and the need for its reform to finance future investments • Difficulty in amending the constitution,
which requires a two-thirds majority in the Bundestag.
The Hindu
Alternative Investment Funds (AIFs): RBI has implemented stricter norms for Regulat-
ed Entities to prevent loan evergreening via investments in Alternative Investment Funds (AIFs) • AIFs are
privately pooled investments in India, collecting funds from sophisticated investors for investing • Gov-
erned by the SEBI (Alternative Investment Funds) Regulations, 2012 • Can be set up as a company, LLP,
trust, etc • Targets high rollers, including domestic and foreign investors in India, typically favored by
institutions and high net worth individuals due to high investment amounts • Types: Category I: Invests
in start-ups, early-stage ventures, SMEs, etc • Includes venture capital funds, angel funds, etc • Cate-
gory III: Employs complex trading strategies, may use leverage • Includes hedge funds, PIPE Funds, etc
• Category II: Includes funds not in Category I/III, like real estate funds, debt funds, etc • No leverage or
borrowing except for operational needs • Category I and II AIFs must be close-ended with a minimum
tenure of 3 years • Category III AIFs can be either open-ended or close-ended.
The Hindu
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AT-1 Bond: SBI’s Additional Tier-1 (AT-1) bond issue received a low response • Perpetual bonds
issued by banks to strengthen their core capital base • Regulated by RBI in India • Long-term and do
not have a specific maturity date, offering higher yields due to their higher risk • Funds serve as a buffer
for the bank • Have a call option that allows banks to repurchase the bonds from investors • Introduced
after 2008 financial crisis to absorb losses • Known as contingent convertible bonds or CoCos • Bonds
are mandatory under Basel-III norms • Required to maintain a minimum capital ratio, with 9.5% in Tier-1
capital, which includes AT-1 bonds.
The Hindu
Offer-for-Sale (OFS): Share sale method for listed companies • Introduced in 2012 by SEBI
• Allow promoters to comply with minimum public shareholding norms by diluting their stake through
share sales on an exchange platform • Govt also uses OFS to divest its shareholding in public sector en-
terprises • Promoters sell shares to retail investors, companies, FIIs, and QIBs in an OFS • Promoters or
shareholders holding more than 10% of share capital can conduct an OFS • Available to the top 200 com-
panies in terms of market capitalization • Minimum of 25% of shares offered are reserved for MFs and
insurance companies • No single bidder, other than MFs and insurance companies, can be allocated more
than 25% of the offering size • At least 10% of offer size is reserved for retail investors • A seller can offer
a discount to retail investors on the bid or final allotment price • Companies must inform 2 banking days
prior to the OFS to the stock exchanges.
The Hindu
REITs and InvITs: SEBI approves changes in REITs and InvITs regulations • REIT: Created for invest-
ing in income-producing real estate • Functions like mutual funds, offering liquid real estate investment
• Provides: income, diversification, and capital appreciation • Can be listed on stock exchanges • Intro-
duced in 2007 by SEBI for first time • InvIT: Collective Investment Scheme like mutual funds • Allows
direct investment in infrastructure projects • Earns a portion of income as returns • Listed on exchanges
through IPO • Regulated by SEBI (Infrastructure Investment Trusts) Regulations, 2014.
Live Mint
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India’s inclusion in GBI-EM Index: JPMorgan to include India in the GBI-EM index start-
ing June 2024 • Expected to bring significant inflows to India and broaden the investor base • Potential
impact on the Rupee’s appreciation • Tracks Sovereign Bonds in local-currency-denominated from emerg-
ing markets • Benchmark for fixed income market in emerging economies • Includes government bonds
from various emerging market countries • Includes 23 Indian government bonds worth a total of USD
330 billion • Government bonds are issued by central and state governments to fund their activities and
regulate the money supply • To raise funds for infrastructure development and other expenditures • RBI
regulates such bonds.
Reuters
50-year Government Bonds: First-ever issuance of 50-year government bonds and 30-year
green bonds • To raise ₹6.55 trillion ($78 • 73 billion) through bond sales from October to March • ₹300
billion allocated for the central government’s first auction of such bonds • Long-term investors, espe-
cially insurers, find these bonds suitable for asset-liability management • Part of Government Securities
(G-Sec), with tenures from 5 to 40 years • Types of Government Bonds: Fixed-Rate Bonds: Offer stable
interest rates throughout the tenure • Floating Rate Bonds (FRBs): Adjust interest rates periodically based
on auctions • Sovereign Gold Bonds (SGBs): Tax-exempt gold investments with prices linked to gold value
• Inflation-Indexed Bonds: Adjust principal and interest based on inflation indices • 7.75% GOI Savings
Bond: Features a 7.75% interest rate, available to individuals and more • Bonds with Call/Put Option:
Allow issuer or investor to buy back or sell bonds, usually after 5 years • Zero-Coupon Bonds: Generate
earnings from price difference, no interest income • Benefits offered: Sovereign Guarantee backed by
government commitment • Protects against rising prices, preserving real investment value • Provides
semi-annual interest disbursements, ensuring regular income.
The Hindu
Direct Listing on Foreign Exchanges: India allows certain firms to directly list on for-
eign stock exchanges for global capital access • Effective since October 30, 2023, introduced via the Com-
panies (Amendment) Act, 2020 • Allows specific domestic public companies to list securities on foreign
exchanges, including GIFT IFSC in Ahmedabad, with exemptions from certain requirements • Lets listing
shares without issuing new shares or raising capital • Differs from traditional IPO, where shares sold to
public for capital • Distinct from depository receipt (DR) route, where shares issued to custodian bank,
which then issues DRs to foreign investors • Benefits: Access diverse investor pool, enhance visibility, im-
prove governance, compliance • Indian firms currently use ADRs/GDRs for foreign listings via custodian
banks • Direct foreign listing benefits: Larger, more liquid market; broader investor base; cost and time
savings (IPO, DR process fees).
The Indian Express
Active and Passive Equity Funds: Active funds saw huge inflows compared to passive
equity funds • An equity fund primarily invests in stocks and can be active or passive (index fund) • Equi-
ty funds, also known as stock funds, vary by company size, investment style, and geography • Managers
make decisions on buying, holding, or selling securities • Active funds aim to outperform the benchmark
index • Risk and return depend on their adopted strategy • Passive funds replicate a specific index or
benchmark • Fund managers in passive funds have a minimal role in stock selection • Decisions in pas-
sive funds align with the benchmark index, focusing on minimal tracking error.
The Indian Express
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MSCI Emerging Markets Index: 9 Indian stocks recently added to the MSCI EM index
• India 2nd-highest after China, to 131 stocks • MSCI, owned by Morgan Stanley, is an investment re-
search firm offering indexes, analytics, and tools to institutional investors and hedge funds • Includes over
160,000 indices, aiding in portfolio construction and monitoring • Offers a range of indices, country-spe-
cific, regional, emerging market, developed market, small cap, all cap, and Islamic indices • MSCI selects
stocks for its equity indexes based on ease of trading, liquidity, and high free float, giving more weight to
companies with higher free float • MSCI India Index measures the performance of the large and mid-cap
segments of the Indian market • Firm prioritizes stocks with active investor participation and without
owner restrictions • With 113 constituents, it covers about 85% of Indian equity universe; undergoes
quarterly reviews.
Live Mint
Participatory Notes: India saw a rise in P-notes investments, reaching ₹1.31 lakh crore by
November end • Offshore derivative instruments with Indian shares as underlying assets • Issued by
registered FIIs (Foreign Institutional Investors) to overseas investors • Enable foreign investors to invest
in Indian stock markets without direct registration • Offers anonymity, keeping beneficiary details un-
disclosed to Indian regulators • Regulated by SEBI (Securities and Exchange Board of India) • FIIs must
comply with KYC norms and other regulatory standards • Linked to risks like money laundering and mar-
ket volatility • Source of foreign portfolio investment, affecting market sentiment and investor behavior
• Usually reflect foreign portfolio investor (FPI) trends • In global risk scenarios, P-note investments tend
to rise, and decrease when risks subsides.
The Hindu
Climate Change Impact on India and World – International Reports, Key Observa-
tions, etc.
Green Credit Program (GCP): Centre launched GCP for earning and trading Green Credits
• For market-based environmental actions across stakeholders • Nodal Agency: Ministry of Environment,
Forest, and Climate Change • Voluntary participation underscores inclusivity • Open to: individuals, in-
dustries, FPOs, ULBs, gram panchayats, private sectors • Tradable on a domestic market platform • Green
Credit certificates to applicants upon approval • Qualifying activities: tree plantation, water conservation,
sustainable agriculture, waste management, air pollution reduction, mangrove conservation, eco-mark ini-
tiatives, sustainable building, and infrastructure development • Credit calculation based on multiple pa-
rameters • Green Credit Registry manages credit tracking and management • Trading platform overseen
by administrators for Green Credits • Non-tradable for credits obtained for legal compliance • Indepen-
dent of Carbon Credit Trading Scheme, 2023, under the Energy Conservation Act, 2001.
The Hindu
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Angel Tax Provisions: Revised angel tax provisions targeting premium investments by non-res-
ident investors in startups • Income Tax Act, 1961: Section 56(2) (vii-b) governs Angel Tax • Unusual tax
on capital receipts, specific to India for preventing misuse • Introduced in 2012 to curb black money
laundering via premium investments • Initially applied to all private business entities, extended to start-
ups in 2016 • Complex VC fundraising with offshore entities raises concerns about misuse • Aimed at
preventing money laundering and round-tripping • Startups taxed at 9% on investments exceeding fair
market value • Investors can claim 100% tax exemption on the excess investment • Conditions: Investor
net worth ≥ ₹2 crores or income > ₹25 lakh in past 3 fiscal years.
The Hindu
National Pension Scheme (NPS): Introduced in January 2004 (except for armed forces)
• PFRDA implements and regulates • National Pension System Trust (NPST) is the registered owner of
all assets under the NPS • Two tiers structure: Tier-I account: Non-withdrawable permanent retirement
account where accumulations are deposited and invested based on the subscriber’s choice • Tier-II ac-
count: Voluntary withdrawable account that can only be opened if there is an active Tier-I account in the
subscriber’s name • Available to all citizens (both resident and non-resident) of India from May 2009
• 18-65 years age group of can join • Not eligible: OCI and PIO card holders, as well as Hindu Undivided
Families (HUFs).
The Hindu
PM Jan Dhan Yojana: Celebrates 9 years with 50 crore+ bank accounts and ₹2 lakh crore+
deposits • Launched in 2014 as a financial inclusion program by the Indian government • Aims to provide
affordable access to financial services like basic savings & deposit accounts, remittance, credit, insurance,
and pension • Offers Basic Savings Bank Deposit (BSBD) accounts with no minimum balance requirement
• Interest earned on deposits in PMJDY accounts • Rupay Debit card for account holders • Includes an
Accident Insurance of ₹1 lakh (₹2 lakh for new accounts after 28-8-2018) • Overdraft (OD) facility of up
to ₹10,000.
The Hindu
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National Internet Exchange of India (NIXI): NIXI marked its 20th Foundation Day
• Not-for-profit Organization under Section 8 of the Companies Act 2013 and was registered on 19th June
2003 • MeitY: Nodal ministry under vision 1000 days • For increasing Internet penetration and adoption
in India by facilitating infrastructure aspects • NIXI provides four key services: Internet Exchange Points,
.IN Registry management, IPv4/IPv6 address adoption, and data center services • Key initiatives: IPv6
Expert Panel (IP Guru), NIXI Academy, NIXI-IP-INDEX.
PIB
BharatNet Project: Approved ₹1.39 lakh crore for last-mile connectivity to 6.4 lakh villages
• Originally National Optical Fibre Network (NOFN) launched in 2011 • In 2015 became BharatNet Proj-
ect • Connects villages with broadband via optical fibre • Executed by BBNL (Bharat Broadband Net-
work Limited) SPV • 1.94 lakh villages connected, rest in 2.5 years • World’s Largest Rural Connectivity
• Aimed 100 Mbps to 2.5 lakh gram panchayats • Provides 2 Mbps to 20 Mbps broadband to households
• Pilot project by 3,800 entrepreneurs with 3 • 51 lakh connections • Connected villages see average 175
GB data consumption per month.
The Hindu
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Industries
Road and Highway Safety – National Road Safety Policy, Good Samaritans, etc.
Bharat New Car Assessment Programme (NCAP): NCAP for four-wheelers from
1 October • Program awards ‘Star Ratings’ based on crash test performance • Applies to type-approved
vehicles of M1 category with GVW < 3 • 5 tonnes, made or imported in India • Category M1 vehicles
design: Passenger carriage with eight seats, excluding the driver’s seat • Voluntary for car manufacturers,
testing upon their request • Ratings based on Adult Occupant Protection (AOP), Child Occupant Protection
(COP), and Safety Assist Technologies (SAT) • 3 types of crash tests: frontal, side, and pole-side impact
tests • Frontal tests at 64 kmph, side, and pole-side tests at 50 kmph and 29 kmph • 5-star rating requires
at least 27 out of 32 points for adult safety and 41 out of 49 points for child safety.
Live Mint
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Kavro Doma 360: MKU Limited Kanpur, recently introduced the Kavro Doma 360 at Milipol Paris
• World’s first rifle-rated ballistic helmet ever made in India • Offers uniform protection against AK-47
MSC, M80 NATO BALL, and M193 rifle bullets • Protects all five head zones (front, back, left, right, crown)
uniformly • Only boltless rifle protection helmet in the world, eliminating the risk of bolt penetration on
impact • 40% more protection area than standard helmets, even against AK-47 assault rifles • First hel-
met with a Back Face Signature/Trauma of less than 20 mm from AK-47 bullet impacts • ‘Back Face Sig-
nature’ measures helmet deformation or indentation from high-energy bullet impacts • Protects against
both straight and rotational/angular impacts, which can cause concussions or brain injuries • Features
top-to-chin and side-to-side harness adjustment for stability and fit • Offers maximum compatibility with
MACS, allowing integration with head-mounted devices and combat equipment.
FE
Purchasing Managers’ Index (PMI): Services PMI reached a 13-year high of 62.3 in July
• S&P Global survey-based measure providing insights on changes in business variables compared to the
previous month • It informs decision makers, analysts, and investors about current and future business
conditions • Calculated for manufacturing and services sectors separately, with a composite index also
constructed • Scores range from 0 to 100, where above 50 indicates expansion, below 50 denotes con-
traction, and 50 represents no change • A higher previous month’s PMI compared to the current month
suggests economic contraction • PMI, released monthly, serves as a indicator of economic activity • IHS
Markit compiles PMI for over 40 economies worldwide.
The Hindu
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Leniency Plus Norms: CCI releases draft of revised lesser penalty regulations introducing a
“leniency plus” program • Part of the Competition (Amendment) Act 2023, it’s an antitrust enforcement
strategy • Encourages companies under investigation for one cartel to report other unknown cartels
• Benefits include: reduced penalties for disclosing information about the first cartel, without affecting
penalties for the newly disclosed one • Similar regimes in the UK, US, Singapore, and Brazil • Competi-
tion Commission of India: Statutory body established in March 2009 under the Competition Act, 2002
• Aims to create fair competition, ensure consumer welfare, and protect against anti-competitive prac-
tices • Mandate includes prohibiting anti-competitive agreements, regulating mergers and acquisitions,
and promoting competition • Comprises one chairperson and six additional members appointed by the
Central Government • Headquarters in New Delhi • Cartelisation: Businesses colluding to keep prices
high.
The Hindu
India’s Core Sector: India’s eight core sectors grew by 7 • 8% in November, a decrease from
12% in October • Key industries in an economy • India identifies eight sectors as core in decreasing
order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement>
Fertilizers • Monthly Index of Eight Core Industries (ICI) measures production volume • ICI assesses
both collective and individual performance in these eight industries • Initially, six industries (Coal, Ce-
ment, Finished Steel, Electricity, Crude petroleum, Refinery products) formed the index • Fertilizer and
Natural Gas were added in the 2004-05 series, maintaining eight core industries in the ICI series with base
2011-12 • Components of the Eight Industries: Coal: Excludes Coking coal production • Crude Oil: To-
tal production • Natural Gas: Total production • Refinery Products: Total production in terms of Crude
Throughput • Fertilizer: Includes Urea, Ammonium Sulphate, Calcium Ammonium Nitrate, Ammonium
chloride, Diammonium Phosphate, Complex Grade Fertilizer, and Single superphosphate • Steel: Alloy and
Non-Alloy Steel production • Cement: Production from Large and Mini Plants • Electricity: Generation
from Thermal, Nuclear, Hydro sources, and imports from Bhutan.
The Hindu
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Infrastructure
Electric and Hybrid Cars – FAME, National Electric Mobility Mission, etc.
PM E-Bus Seva Scheme: Scheme approved for city bus enhancement • 10,000 e-buses to
be deployed across cities • PPP mode (Public-Private Partnership) for city bus operations • Support for
10 years • Centre to offer subsidies, Rs 57,613 crore allocated • Cities with 3 lakhs+ population covered,
priority for those without bus services • Two segments: Augmenting city buses, Green Urban Mobility
• Upgradation: Depot infrastructure development, Power infrastructure for e-buses created.
The Hindu
VGF Scheme for Battery Infrastructure: Union Cabinet approved Viability Gap Fund-
ing (VGF) Scheme for Battery Energy Storage Systems (BESS) • BESS devices store energy from renewables
like solar and wind for later use • Govt provides up to 40% capital cost support via VGF to reduce BESS
costs • To provide clean and affordable electricity through renewable sources • A minimum of 85% BESS
capacity to be available to Distribution Companies (Discoms) • Enhances renewable energy integration
into the grid and minimizes infrastructure costs • To develop 4,000 MWh of BESS projects by 2030-31
• For a Levelised Cost of Storage (LCoS) between Rs.5.50-6.60 per kWh.
The Hindu
EV Charging Standard for Bikes and Scooters: BIS approves charging connector
standard for Light Electric Vehicles (LEVs) • Named as: ISI7017 (Part 2/Sec 7) 2023 • Developed collabo-
ratively with NITI Aayog, Department of Science and Technology, Ather Energy, and others • Key Feature:
Combines AC and DC charging, enhancing interoperability and compatibility • Diverse Charging Stan-
dards: Indian EV manufacturers follow varied standards, similar to past smartphone diversity • Different
Charging Standards Worldwide: China: Uses GB/T, with a dense network of charging stations • United
States: Collaboration among EV manufacturers to establish common standards • Europe: Dominated by
Combined Charging System (CCS) standard, promoted by EU • Japan: CHAdeMO standard, being phased
out in North America for common standards.
The Indian Express
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Setu Bandhan Scheme: Approved for 7 bridge projects in Arunachal Pradesh • Nodal agency:
Central Road and Infrastructure Fund (Ministry of Road Transport and Highways) • Objective: To enhance
inter-state connectivity, especially in rural border areas • Focuses on replacing railway line Level Crossings
(LCs) with Road Over Bridges (ROBs) or Rail under Bridges (RUBs) • CRIF established in 2000 through the
Central Road Fund Act • Previously known as the Central Road Fund (under Ministry of Finance) • Funded
through a Cess levied in conjunction with excise duty on petrol and diesel.
PIB
LEADS Report, 2023: MCI released 5th edition of “Logistics Ease Across Different State (LEADS)
2023” report • Indigenous index assessing logistics infrastructure, services, and human resources across
all 36 States and UTs • Conceived in 2018 with World Bank’s LPI (Logistics Performance Index) and has
evolved since • Evaluates logistics performance based on logistics infrastructure, services, and operating
and regulatory environment • Based on a pan-India primary survey conducted between May and July
2023, with over 7,300 responses and insights from 750 stakeholder consultations • Achievers: 13 states/
UTs, including Andhra Pradesh, Karnataka, Tamil Nadu, Chandigarh, and Gujarat, recognized for efficient
logistics services aiding export promotion and economic growth • Fast Movers: Kerala, Maharashtra,
Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, and Nagaland noted for significant logis-
tical improvements • Aspirers: Goa, Odisha, West Bengal, Bihar, Chhattisgarh, Himachal Pradesh, and
Jharkhand identified as regions with growth potential in logistics.
The Hindu
Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing,
etc
All India Radio (AIR) : Radio broadcasting began with the Radio Club of Bombay’s first com-
mercial transmission in 1923 • 1927 establishment of the Indian Broadcasting Company (IBC) • 1930
establishment of the Indian State Broadcasting Service (ISBS) • 1936 renamed as All India Radio(AIR)
• Coverage was limited to just 2% of India’s land area and only reached 11% of its population • Today, AIR
has a vast network of over 262 radio stations that cover 92 percent of India’s area and nearly all of its pop-
ulation • AIR broadcasts in 23 languages and 146 dialects, 16 foreign languages, reaching out to over 100
countries • Its News Services Division broadcasts 647 bulletins daily, for nearly 56 hours in total • Addi-
tionally, AIR has 18 FM stereo channels, and FM broadcasting began in Chennai in 1977 • Name change to
exclusively refer to AIR as Akashvani is in line with the Prasar Bharati Act, 1990, passed by the Parliament,
and is more in tune with listeners’ emotional connect, as well as the law that came into being in 1997.
The Indian Express
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Submarine Cables in India: TRAI has issued recommendations on rules governing undersea
cables connecting Indian telecom networks to the global internet • A cable laid on the seabed to transmit
telecommunication signals between land-based stations • Uses fiber-optic technology for data transmis-
sion • More reliable, cost-efficient, and have larger capacity compared to satellites • Examples: MIST
Submarine Cable System (connecting India with Myanmar, Thailand, Malaysia, and Singapore) • India Asia
Xpress (IAX) (India to the Maldives, Singapore, Sri Lanka, and Thailand) • India Europe Xpress (IEX) (India
to Italy via Saudi Arabia and Greece) • SeaMeWe-6 project (Singapore to France via India, Bangladesh, and
Maldives) • Africa2 Cable (India with the UK via several African countries).
The Hindu
National Broadcasting Day (July 23): Radio broadcasting began with the Radio Club
of Bombay’s first commercial transmission in 1923 • 1927 establishment of the Indian Broadcasting
Company (IBC) • 1930 establishment of the Indian State Broadcasting Service (ISBS) • 1936 renamed
as All India Radio(AIR) • Coverage was limited to just 2% of India’s land area and only reached 11% of its
population • Today, AIR has a vast network of over 262 radio stations that cover 92 percent of India’s area
and nearly all of its population • AIR broadcasts in 23 languages and 146 dialects, 16 foreign languages,
reaching out to over 100 countries • Its News Services Division broadcasts 647 bulletins daily, for nearly
56 hours in total • Additionally, AIR has 18 FM stereo channels, and FM broadcasting began in Chennai in
1977 • Name change to exclusively refer to AIR as Akashvani is in line with the Prasar Bharati Act, 1990,
passed by the Parliament, and is more in tune with listeners’ emotional connect, as well as the law that
came into being in 1997.
The Indian Express
Sanchar Saathi: Ministry of Communications launched the Sanchar Saathi portal • It is a citi-
zen-centric initiative to empower mobile subscribers, strengthen their security and increase awareness
• Developed by: C-DoT under the Department of Telecommunications (DoT) • CEIR (Central Equipment
Identity Register) for blocking stolen/lost mobiles • Know your mobile connections: To know mobile con-
nections registered in your name • ASTR (Artificial Intelligence and Facial Recognition powered Solution
for Telecom SIM Subscriber Verification): To identify fraudulent subscribers • Verification: Check the con-
nections registered on their names, Report fraudulent or unrequired connections, Block the mobile phones
which are stolen/lost and Check IMEI genuineness before buying a mobile phone.
The Hindu
Telecommunications Bill, 2023: Passed by both the houses • Replaces two major laws:
the Indian Telegraph Act, 1885, and the Indian Wireless Telegraphy Act, 1933 • Central government
authorization is needed for telecom networks, service provision, or radio equipment possession • Spec-
trum allocation will mainly be through auctions, with some administrative assignments • Telecom inter-
ception is permitted for state security, public order, or preventing offences, with similar criteria for service
suspension • Facilitates right of way for telecom infrastructure on both public and private properties
• User protection measures include consent for message receipt and a do not disturb register • Delegates
interception procedures and safeguards to Centre, raising inclusion concerns • Potential for mass sur-
veillance under the Bill may conflict with the right to privacy • Absence of detailed procedural safeguards
for premise and vehicle searches • Biometric verification for users might violate privacy rights • Broad
definition of telecommunication services could include internet-based services • Centralizes regulatory
functions in the government • Government can modify offences in the Bill through notifications, ques-
tioning the need for parliamentary acts for such changes.
The Hindu
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Direct-to-Mobile (D2M) Broadcasting: DoT and Prasar Bharati are exploring D2M
broadcasting technology for broadcasting content to mobile phones without needing an internet connec-
tion • Aimed at improving broadband consumption and spectrum utilization • Merges broadband and
broadcast, enabling mobile phones to receive terrestrial digital TV • Similar to FM radio on phones, D2M
allows direct reception of multimedia content • Allows streaming of live news, sports, etc • , on mobile
phones without internet data usage • Multimedia access at a low cost, VoD, or OTT content without mo-
bile data; in rural areas with limited internet • Shift video traffic from mobile to broadcast networks, eas-
ing mobile spectrum congestion • Enhances mobile spectrum efficiency, potentially reducing call drops
and improving data speeds • DoT has set up a committee to assess the feasibility of a spectrum band for
direct broadcast to smartphones • 526-582 MHz band is under consideration for integration with mobile
and broadcast services • Prasar Bharati and IIT Kanpur collaborated last year to test the technology’s
feasibility.
FE
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‘Namo Bharat’ Regional Rapid Transit System (RRTS): First 17km priority
section inaugurated for Delhi-Ghaziabad-Meerut corridor • NCRTC oversees RRTS projects, a joint venture
between the Centre and Delhi, Haryana, Rajasthan, and UP governments • Initial stations: Sahibabad,
Ghaziabad Guldhar, Duhai, Duhai depot • Trains run every 15 minutes, potential for 5-minute intervals;
designed and made in India • Eight corridors identified; Delhi-Ghaziabad-Meerut, Delhi-Gurugram-SNB-Al-
war, Delhi-Panipat prioritized first • 180 kmph, operational speed of 160 kmph.
The Indian Express
Cantonments Boards: Centre has kicked off a plan to abolish the 62 cantonments around the
country as “archaic colonial legacies” • The first one is Yol in Himachal Pradesh • Cantonments are perma-
nent military stations governed by the Cantonments Act, 2006 • There are 62 cantonments in India that
are maintained by the Defence Estates Organization (DEO) under the Ministry of Defence • Cantonments
are considered to have better infrastructure and facilities compared to other parts of the country, and Can-
tonment Boards are democratic bodies comprising elected and nominated members • The Cantonments
Act, 2006, replaced the Cantonments Act, 1924, to provide greater autonomy and accountability to the
Cantonment Boards • Cantonments are categorized based on the population residing inside them, with
four categories ranging from more than 50,000 to industrial or training Cantonments irrespective of their
population size.
The Times Of India
Meri LiFE Mera Swachh Shehar Campaign: Ministry for Housing and Urban Affairs
(MoHUA) has launched the campaign • Objective is to establish ‘Reduce, Reuse, Recycle (RRR) Centres’
in cities • Citizens can contribute clothes, shoes, old books, toys, and used plastic for reuse or recycling
• RRR Centres to deposit unused or used items, which will then be refurbished or made into new products
by different stakeholders • Aims at creating a circular economy and reducing waste generation • India in-
troduced LiFE Movement @ 26th UN Climate Change Conference of the Parties- COP26 in Glasgow in 2021
• It promotes an environmentally conscious lifestyle that emphasizes mindful and deliberate utilization
instead of mindless and wasteful consumption.
PIB
Smart Cities Mission: Initiative of MoHUA (Union Ministry of Housing and Urban Affairs)
• Launched on June 25, 2015 by Prime Minister • To improve municipal services and enhance liveability
across cities • Centrally Sponsored Scheme, with the Centre providing financial support of Rs • 48,000
crores over 5 years, averaging Rs • 100 crore per city per year • 100 cities were selected for the Mission
over five rounds between January 2016 and June 2018 • Objective: provide core infrastructure, a clean
and sustainable environment, and a decent quality of life through the application of smart solutions • Eco-
nomic growth and improved quality of life are targeted through comprehensive work on social, economic,
physical, and institutional aspects of the city • Matching funds are to be provided by the State/ULB • Ad-
ditional resources will be raised through convergence • ULB’s own funds and grants under the Finance
Commission, Municipal Bonds, government programs, and borrowings.
The Hindu
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Cantonments Boards: Centre has kicked off a plan to abolish the 62 cantonments around the
country as “archaic colonial legacies” • The first one is Yol in Himachal Pradesh • Cantonments are perma-
nent military stations governed by the Cantonments Act, 2006 • There are 62 cantonments in India that
are maintained by the Defence Estates Organization (DEO) under the Ministry of Defence • Cantonments
are considered to have better infrastructure and facilities compared to other parts of the country, and Can-
tonment Boards are democratic bodies comprising elected and nominated members • The Cantonments
Act, 2006, replaced the Cantonments Act, 1924, to provide greater autonomy and accountability to the
Cantonment Boards • Cantonments are categorized based on the population residing inside them, with
four categories ranging from more than 50,000 to industrial or training Cantonments irrespective of their
population size.
The Hindu
Amplifi 2.0 Portal: MoHUA launched Amplifi 2.0 portal to support data-driven policymaking
• Acronym for: Assessment and Monitoring Platform for Liveable, Inclusive, and Future-Ready Urban India
• Provides easy access to raw data from Indian cities, aiding researchers, academics, and stakeholders
in urban policy formulation • 258 ULBs are onboarded, with data for 150 cities available on the platform
• Accessible data from all 3,739 municipal corporations • Offers diverse data, including consumption,
water quality, healthcare spending, slum population, and road accident fatalities.
The Hindu
AAINA Dashboard for Cities: MoHUA launched ‘AAINA Dashboard for Cities’ portal (www.
aaina.gov.in) • Comprehensive database of ULBs (Urban Local Bodies’) key performance metrics • Enable
cities to compare their performance with others • Highlight potential improvements and inspire cities
• Facilitate learning and engagement with leading cities • Will NOT rank ULBs but will be a comparative
tool for peer learning • 5 Pillars: Political & Administrative Structure; Finance; Planning; Citizen Centric
Governance; Delivery of Basic Services.
CD
DigiYatra Initiative: Facial scans and barcoded e-tickets, are installed at 13 airports, with plans
for 25 more next year • Enables paperless airport entry with facial recognition technology • Aims for pa-
perless, contactless checkpoints, linking facial features to boarding passes • Automates passenger entry
at airport entry, security checks, and boarding • Implemented by the DigiYatra Foundation, a joint ven-
ture including the Airports Authority of India and major Indian airports • Airports Authority of India has a
26% stake, with five major airports sharing the remaining 74% • Passengers register on the DigiYatra app
with Aadhaar validation and a self-captured image • Scan their boarding pass, sharing credentials with
airport authorities • Special e-gate validates identity and travel documents through facial recognition.
The Hindu
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Railway Reforms
TCAS-Kavach: Recent train collision in Andhra Pradesh highlighted the absence of Traffic Collision
Avoidance Systems (TCAS), including the indigenous ‘Kavach’ system • Kavach is a cab signaling train con-
trol system with anti-collision features developed by RDSO and three Indian vendors • India’s National
Automatic Train Protection (ATP) System, adhering to Safety Integrity Level-4 (SIL-4) standards • Alerts
loco pilots of ‘red signals’ and applies automatic brakes if needed to prevent overshooting • Relay SoS
messages during emergencies and offers centralized live train monitoring through the Network Monitor
System • 3 components: First Component: RFID technology incorporated into tracks for object identifica-
tion without physical contact • Second Component: Locomotive equipped with RFID readers, a computer,
and brake interface equipment • Third Component: Radio infrastructure (towers, modems) at railway
stations • Deployment cost is ₹50 lakh per km, with limited coverage of approximately 1,500 km • Big
challenge for comprehensive implementation across the 68,000 km rail network.
The Hindu
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Energy
White Hydrogen: Vast white hydrogen reservoir found while searching for fossil fuels in north-
eastern France • Also known as “natural,” “gold,” or “geologic” hydrogen, it occurs naturally in the Earth’s
crust and offers clean energy potential • Typically found combined with other molecules • Advantages
offered: Produces no CO2 emissions when used as fuel • Compatible with existing H2 infrastructure and
technologies • More cost-effective and efficient than steam reforming or electrolysis • Abundant and
renewable • Deposits exist worldwide, including the US, Eastern Europe, Russia, Australia, France, and
more • Types of Hydrogen: Grey Hydrogen: Produced from coal or lignite gasification, or steam meth-
ane reformation (SMR), often carbon-intensive • Blue Hydrogen: Produced via gasification with carbon
capture technologies to reduce emissions • Green Hydrogen: Generated through water electrolysis using
renewable energy.
CD
Biofuel Policy
Global Biofuel Alliance (GBA): 14th Clean Energy Ministerial conference in Goa, July 19-
22, 2023, to establish GBA • GBA draws inspiration from the International Solar Alliance (ISA) • Priority
under India’s G20 Presidency • Non-G20 countries can be member • US and Brazil, global leaders in
biofuels, working with India for GBA; account for 55% and 27% of global ethanol production • Supported
by international organizations like World Economic Forum, International Energy Forum, and Internation-
al Energy Agency • Objective: Facilitate cooperation and intensify sustainable biofuel use, especially in
transportation sector • Focus on strengthening markets, global biofuels trade, policy lesson-sharing, and
technical support for national biofuels programs.
Down to Earth
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India’s First Reference Fuel: Self-reliance with the production of ‘reference’ petrol and
diesel • Previously imported from Europe and the US • High-value Petrol and Diesel used for vehicle
calibration and testing • Strict specifications like Cetane number, flash point, viscosity, sulphur content,
etc. • Have octane numbers of 97, exceeding regular and premium fuels • Indian Oil Corporation (IOC)
developed reference petrol in Paradip and diesel in Panipat • Different ethanol-gasoline blends (E0, E5,
E10, E20, E85, E100) from Paradip • Panipat refinery produces B7 grade reference diesel fuel • Domestic
production lowers costs significantly compared to imported reference fuel • Offers shorter lead times and
import substitution at a better price • Ethanol blending reduces carbon footprint and emissions in gaso-
line vehicles • Diesel B7 contains up to 7% biocomponents • Octane number measures fuel resistance to
engine knocking • Cetane number indicates diesel ignition quality • Flash point is the lowest temperature
for vapor ignition • Viscosity measures fluid resistance to flow • Acid number gauges the amount of acidic
substance in oil.
The Economic Times
Mozambique LNG Project: India reviews $20 billion project for LNG in Mozambique • Proj-
ect initiated in 2010 with the discovery of significant natural gas reserves off northern Mozambique • 3
Indian PSUs have a 30% stake in the project • Mozambique’s strategic location near India’s west coast
enhances its importance as an LNG source • India seeks to increase natural gas in its energy mix, with LNG
imports playing a vital role • Other companies halted operations in April 2021 due to security concerns
• Humanitarian mission in December 2022 recommended actions to address local issues • India actively
engages project partners to restart the project since May 2023 • Geopolitically significant as India diver-
sifies LNG suppliers beyond reliance on Qatar.
CD
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Nuclear Energy
Small Modular Reactors (SMRs): SMRs offer India a promising solution achieve its am-
bitious clean energy goals • Capacity up to 300 MW(e) per unit (1/3 of traditional reactors) • SMRs pro-
duce significant low-carbon electricity, being small, modular, and using nuclear fission • TYPES: Small:
Fraction of traditional reactor size • Modular: Factory-assembled, transported, and installed • Utilize
nuclear fission for energy generation • Enhanced safety features reduce radioactive material release risk
• Designed for 40-60 years operation, capacity factors >90%.
The Hindu
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Rooppur Nuclear Power Plant: First shipment of Russian uranium arrives at Bangladesh’s
Rooppur Nuclear Power Plant • Rooppur plant situated on Ganges River eastern bank of the, 160 km
from Dhaka • Bangladesh’s first nuclear power facility • Part of an Indo-Russian agreement for atomic
energy projects in third nations • Supported by IAEA (International Atomic Energy Agency) for safe and
sustainable nuclear power adoption • IAEA is an intergovernmental organization for nuclear science and
tech cooperation, established in 1957 • IAEA’s Milestones Approach assists countries in planning their first
nuclear power plant • Headquarters: Vienna, Austria.
The Hindu
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External Sector
Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.
London Interbank Offered Rate (LIBOR): Represents the average interest rate at which major
London banks lend funds to each other • Calculated daily through submissions from a panel of banks,
estimating borrowing rates for different currencies and time periods • Administered by Intercontinental
Exchange and averages these submissions to determine LIBOR rates, serving as a benchmark for financial
contracts • Various currencies included: USD, EUR, GBP, JPY, CHF • Financial institutions rely on LIBOR for
pricing loans, derivatives, bonds, and other instruments • Concerns: Reliability and manipulation • Al-
ternative is MIFOR: Mumbai Interbank Forward Outright Rate is a benchmark rate used in Indian financial
markets • Represents the forward premium or discount on the USD-INR exchange rate based on the
LIBOR rate.
The Hindu
Export Preparedness Index, 2022: NITI Aayog released the 3rd edition of EPI for States/
UTs of India in 2022 • Analyzes export-related parameters for States and UTs across to identify strengths
and weaknesses • 4 Pillars include: Policy, Business Ecosystem, Export Ecosystem, and Export Performance
• 10 sub-pillars: such as Export Promotion Policy, Infrastructure, Trade Support, and Export Diversification
• Tamil Nadu topped EPI 2022, followed by Maharashtra and Karnataka • Uttarakhand ranked first among
hilly/Himalayan states, followed by Himachal Pradesh, Manipur, Tripura, Sikkim, Nagaland, Meghalaya,
Arunachal Pradesh, and Mizoram • Haryana topped the chart among landlocked regions, followed by
Telangana, Uttar Pradesh, Punjab, Madhya Pradesh, and Rajasthan.
Live Mint
Dual-Use Items: DGFT emphasizes enhanced export control of dual-use items • Primarily de-
signed for civilian use but can also be utilized for military or prohibited purposes • Examples include pre-
cursor chemicals like sarin gas and components like centrifuges • India maintains a specialized SCOMET
list (speciality chemicals, organisms, materials, equipment, and technologies) for dual-use items • Subject
to regulation as per India’s Foreign Trade Policy • Missile and dual-use export control regimes (MECRs)
especially related to proliferation of Weapons of Mass Destruction (WMD) • India member of 3 out of four
MECRs, excluding the one related to nuclear technology • 4 key MECRs include: Nuclear Suppliers Group
(NSG) for nuclear technology control • Australia Group (AG) for chemical and biological technology con-
trol • Missile Technology Control Regime (MTCR) for rockets and aerial vehicles related to WMD delivery
• Wassenaar Arrangement for conventional arms and dual-use goods and technologies.
The Economic Times
Gresham’s Law: Attributed to Thomas Gresham • Played a role in Sri Lanka’s 2022 economic
crisis • Led to rupee being considered more valuable than its actual worth and the USD being under-
valued, resulting in fewer USD • People started avoiding using US dollars in official transactions • “Bad
money drives out good:” Bad money is equal or less in value than its face value, while good money has the
potential for greater value • People tend to hoard more valuable money and spend less valuable money,
causing the less valuable money to dominate the market • Applies when governments fix exchange rates,
creating a gap between official and market rates, affecting not only paper but also commodity currencies
and goods • Contrast to Gresham’s Law: Thiers’ Law: “Good money drives out bad:” In a free exchange
rate environment, people prefer higher-quality currencies and discard inferior ones.
The Hindu
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India tops Global Remittance Inflows in 2023: Highest global remittance in-
flows at USD 125 billion • India’s currency agreement with the UAE influenced this surge • World Bank
reported a slowdown in India’s remittance growth to 12 • 4% in 2023, from 24 • 4% in 2022 • India’s
share of South Asian remittances is projected to increase to 66% in 2023, up from 63% in 2022 • Other
top remittance-receiving countries include Mexico (USD 67 billion), China (USD 50 billion), the Philippines
(USD 40 billion), and Egypt (USD 24 billion) • Declining inflation and strong labor markets in high-income
countries boosted remittances • Major remittance sources: US, the UK, Singapore, and the GCC, espe-
cially the UAE • UAE is the second-largest source of remittances to India, contributing 18% of the total.
The Indian Express
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