Indian Economy For Prelims 2024

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Contents
ECONOMY: BASIC CONCEPTS ............................................................................................................................. 10
LINK BETWEEN GDP GROWTH AND EMPLOYMENT IN INDIA ....................................................................... 10
NOMINAL GDP ................................................................................................................................................. 11
MULTIDIMENSIONAL POVERTY INDEX (MPI) ................................................................................................. 12
GENDER INEQUALITY INDEX (GII)................................................................................................................... 18
PURPLE ECONOMY.......................................................................................................................................... 18
SUSTAINABLE DEVELOPMENT GOALS (SDGs) AND SMART CITIES MISSION (SCM) ................................... 19
FINANCIAL INCLUSION .................................................................................................................................... 21
INDIA'S GDP GROWTH AND GOVERNMENT EXPENDITURE .......................................................................... 22
REVENUE DEFICIT ........................................................................................................................................... 23
INDIA'S CURRENT ACCOUNT DEFICIT ............................................................................................................. 25
DEFLATION ....................................................................................................................................................... 28
TWIN DEFICIT CHALLENGE ............................................................................................................................. 29
BIFLATION ........................................................................................................................................................ 30
GREEDFLATION................................................................................................................................................ 31
NOBEL ECONOMICS PRIZE 2023................................................................................................................... 32
INFRASTRUCTURE ............................................................................................................................................... 34
NATIONAL HIGHWAYS ...................................................................................................................................... 34
RAILWAYS ......................................................................................................................................................... 34
INLAND WATERWAYS ....................................................................................................................................... 35
AVIATION .......................................................................................................................................................... 36
AIRPORT CODES .............................................................................................................................................. 36
INFRASTRUCTURE PUSH AT LAC .................................................................................................................... 37
REGIONAL RAPID TRANSIT SYSTEM (RRTS), OR RAPIDX .............................................................................. 38
Indian Context: ................................................................................................................................................ 38
PM GATI SHAKTI NMP ..................................................................................................................................... 39
INDIA INFRASTRUCTURE REPORT 2023........................................................................................................ 39
WORLD'S FIRST CNG TERMINAL AT BHAVNAGAR, GUJARAT ......................................................................... 40
CENTRE OF EXCELLENCE FOR GREEN PORT & SHIPPING (NCoEGPS) ........................................................ 41
COASTAL ECONOMIC ZONE UNDER SAGARMALA SCHEME.......................................................................... 42
TAJPUR, BENGAL'S 1ST DEEP SEA PORT ....................................................................................................... 42
IMPACT OF DISRUPTION OF RED SEA TRADE ROUTE ON INDIA ................................................................... 43
VIZHINJAM PORT ............................................................................................................................................. 44
PM INAUGURATES 'VANIJYA BHAWAN' AND LAUNCHES NIRYAT PORTAL ..................................................... 45
PM SURYODAYA YOJANA ................................................................................................................................. 46
INVESTMENT ....................................................................................................................................................... 49
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GOVERNMENT'S DISINVESTMENT TARGET FOR 2022-23 ........................................................................... 49
BLUE BONDS ................................................................................................................................................... 49
PASSIVE FUNDS .............................................................................................................................................. 50
SOVEREIGN GREEN BONDS ........................................................................................................................... 51
INVESTMENT IN CAPITAL MARKETS THROUGH P-NOTES DROPPED ........................................................... 52
ALTERNATIVE INVESTMENT FUND (AIF) ......................................................................................................... 53
SWAMIH INVESTMENT FUND ......................................................................................................................... 54
INDIANS GO WEST, TAKE UP 'RESIDENCE BY INVESTMENT' ........................................................................ 54
ALTERRA: UAE COMMITS $30BN TO CLIMATE-FOCUSED INVESTMENT VEHICLE ....................................... 55
ANGEL TAX ....................................................................................................................................................... 55
BHARATKOSH PORTAL .................................................................................................................................... 56
RBI ISSUES DRAFT NORMS FOR LENDING OF GOVERNMENT SECURITIES ................................................ 57
INCREASE IN INTEREST RATE FOR PF DEPOSITS .......................................................................................... 58
PUBLIC DEBT ................................................................................................................................................... 58
INFRASTRUCTURE DEBT FUND-NBFCS.......................................................................................................... 59
ECONOMIC SECTORS & INSTITUTIONS .............................................................................................................. 60
INFRASTRUCTURE DEBT FUND-NBFCS.......................................................................................................... 60
AGRICULTURE SECTOR ................................................................................................................................... 60
FOOD PROCESSING SECTOR .......................................................................................................................... 60
FISHERIES SECTOR ......................................................................................................................................... 61
RAILWAY SECTOR ............................................................................................................................................ 61
INDEX OF CORE INDUSTRIES ......................................................................................................................... 61
PRODUCTION-LINKED INCENTIVES & MANUFACTURING SECTOR ............................................................... 61
INDIAN TEXTILE INDUSTRY ............................................................................................................................. 62
WORLD DAIRY SUMMIT 2023 ........................................................................................................................ 62
TASK FORCE PROPOSES NATIONAL AVGC-XR MISSION ................................................................................ 62
SEMICONDUCTOR REVOLUTION ..................................................................................................................... 63
HEALTH SECTOR .............................................................................................................................................. 63
ELDERLY POPULATION AND WELFARE SCHEMES ......................................................................................... 64
PARLIAMENT CLEARS 28% GST ON ONLINE GAMING, CASINOS ................................................................. 64
RENEWABLE ENERGY SECTOR ....................................................................................................................... 64
CENTRE IDENTIFIED 30 CRITICAL MINERALS ............................................................................................... 65
GIG ECONOMY ................................................................................................................................................. 65
RESOURCE EFFICIENCY CIRCULAR ECONOMY COALITION (RECEIC) ........................................................... 65
OTHER IMPORTANT ECONOMIC GROWTH SECTORS .................................................................................... 66
DOMESTIC ECONOMIC INSTITUTIONS ........................................................................................................... 66
NABARD PARTNERS ........................................................................................................................................ 67
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............................................................................................................................................................................. 67
INTERNATIONAL ECONOMIC INSTITUTIONS................................................................................................... 68
INDICES ............................................................................................................................................................... 71
GLOBAL INNOVATION INDEX 2023................................................................................................................. 71
HUMAN DEVELOPMENT INDEX (HDI) FOR 28 LAKH PVTGS ......................................................................... 71
GLOBAL HUNGER INDEX 2023 ...................................................................................................................... 72
LOGISTICS PERFORMANCE INDEX (LPI) 2023 .............................................................................................. 73
FOOD PRICE INDEX ..........................................................................................................................................74
INDIA'S MANUFACTURING PMI ....................................................................................................................... 75
PERIODIC LABOUR FORCE SURVEYS (PLFS) 2019-23.................................................................................. 75
ALL-INDIA CONSUMER PRICE INDEX NUMBERS FOR AGRICULTURAL AND RURAL LABOURERS............... 76
COMPOSITE WATER MANAGEMENT INDEX REPORT ..................................................................................... 76
EXPORT PREPAREDNESS INDEX (EPI) 2022 ................................................................................................. 77
LIFE CYCLE OF WORKING WOMEN INDEX ..................................................................................................... 78
AGRICULTURE ...................................................................................................................................................... 79
CROP PRODUCTION ........................................................................................................................................ 79
PERENNIAL VARIETY OF RICE ......................................................................................................................... 80
NEW DWARF VARIETIES OF KALANAMAK RICE ............................................................................................. 80
'JOHA RICE' VARIETIES OF NORTH-EASTERN INDIA ....................................................................................... 80
"MAKHIR" GINGER........................................................................................................................................... 81
LAKADONG TURMERIC ................................................................................................................................... 81
UDANGUDI PANANGKARUPATTI ...................................................................................................................... 81
AYYAMPALAYAM NETTAI................................................................................................................................... 82
GENETICALLY ENGINEERED (GE) COTTON..................................................................................................... 82
COFFEE (PROMOTION AND DEVELOPMENT BILL), 2022 ............................................................................. 82
ASIAN PALM OIL ALLIANCE (APOA) ................................................................................................................. 83
RICE CULTIVATION IN INDIA ............................................................................................................................ 83
SUGARCANE CULTIVATION IN INDIA ............................................................................................................... 83
JUTE CULTIVATION IN INDIA ............................................................................................................................ 84
TECHNOLOGIES FOR PRIMARY PROCESSING, STORAGE AND VALORISATION OF ONIONS ........................ 84
The major export destinations are Bangladesh, Malaysia, Sri Lanka, UAE, Nepal, and Indonesia. .......... 85
MILLETS (INTERNATIONAL YEAR OF MILLETS 2023).................................................................................... 85
DRAGON FRUIT CULTIVATION IN INDIA ........................................................................................................... 85
INDIA'S TEA INDUSTRY .................................................................................................................................... 85
FERTILIZERS ........................................................................................................................................................ 86
MANURE .......................................................................................................................................................... 86
ONE NATION ONE FERTILISER SCHEME ........................................................................................................ 86
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UREA IMPORTS ................................................................................................................................................ 87
NANO UREA ..................................................................................................................................................... 87
POTASH FERTILIZER ........................................................................................................................................ 87
NANO LIQUID DAP ........................................................................................................................................... 87
TYPES OF AGRICULTURAL PRACTICES ............................................................................................................... 88
ZERO TILLAGE.................................................................................................................................................. 88
REGENERATIVE AGRICULTURE ....................................................................................................................... 88
NATURAL FARMING ......................................................................................................................................... 88
GREEN REVOLUTION AND M.S. SWAMINATHAN............................................................................................ 89
Who was M.S. Swaminathan (1925-2023)? ................................................................................................. 89
What are high-yielding varieties of crops? ..................................................................................................... 89
SEED BALLS PLANTATION ............................................................................................................................... 90
AGRICULTURE FINANCING IN INDIA ................................................................................................................... 90
SOURCES AND SCHEMES FOR AGRICULTURAL FINANCING......................................................................... 90
PRIMARY AGRICULTURE CREDIT SOCIETIES (PACS) ..................................................................................... 91
ORGANIZATIONS .............................................................................................................................................. 92
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD (NAFED) .................... 92
NATIONAL AGRICULTURE MARKET (eNAM).................................................................................................... 92
AGRICULTURAL PRODUCE MARKET COMMITTEE (APMC) ............................................................................ 92
FOOD CORPORATION OF INDIA (FCI) .............................................................................................................. 93
AGRICULTURAL AND PROCESSED FOOD PRODUCTS EXPORT DEVELOPMENT AUTHORITY (APEDA) ........ 93
MARINE PRODUCTS EXPORT DEVELOPMENT AUTHORITY (MPEDA)............................................................ 93
INTERNATIONAL CROPS RESEARCH INSTITUTE FOR THE SEMI-ARID TROPICS (ICRISAT) .......................... 93
NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE (NCDEX) ............................................................. 94
MULTI COMMODITY EXCHANGE (MCX) .......................................................................................................... 94
E-TECHNOLOGY IN AGRICULTURE .................................................................................................................. 94
IoT IN AGRICULTURE ....................................................................................................................................... 95
CONTROLLED ENVIRONMENT AGRICULTURE (CEA)...................................................................................... 95
DRONES ........................................................................................................................................................... 95
PRECISION AGRICULTURE .............................................................................................................................. 96
GEOGRAPHIC INFORMATION SYSTEM (GIS) .................................................................................................. 96
BIG DATA & ANALYTICS ................................................................................................................................... 96
POLICY MEASURES FOR AGTECH IN INDIA .................................................................................................... 96
MISCELLANEOUS ............................................................................................................................................ 97
THREE NEW COOPERATIVE SOCIETIES .......................................................................................................... 97
RESTRUCTURING OF SUGAR DEVELOPMENT FUND (SDF) RULES .............................................................. 97
SUGARCANE OUTPUT VALUE TRENDS ........................................................................................................... 98
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SEBI BAN ON AGRI COMMODITIES TRADE .................................................................................................... 98
BASIC ANIMAL HUSBANDRY STATISTICS 2023 ............................................................................................. 99
WORLD'S LARGEST GRAIN STORAGE PLAN ................................................................................................. 100
MONEY & BANKING .......................................................................................................................................... 101
BAD LOANS .................................................................................................................................................... 101
RBI SURPLUS TRANSFER.............................................................................................................................. 102
RBI'S LIQUIDITY ADJUSTMENT TOOLS ......................................................................................................... 103
REPO RATE..................................................................................................................................................... 104
FLOATING TO FIXED RATE REGIME ............................................................................................................... 105
LIBOR ............................................................................................................................................................. 106
NON-FUNGIBLE TOKEN (NFT) ....................................................................................................................... 107
RBI TO BRING DIGITAL LOAN AGGREGATORS UNDER REGULATION .......................................................... 109
INDIA, SINGAPORE LAUNCH UPI-PAYNOW LINKAGE ................................................................................... 110
FRANCE FIRST EUROPEAN COUNTRY TO ACCEPT INDIA'S UPI ................................................................... 111
PANCHAYATS TO GET UPI-ENABLED DIGITAL TRANSACTIONS FACILITY ..................................................... 111
SCHEDULED BANKS ..................................................................................................................................... 112
RBI INNOVATION HUB (RBIH) ........................................................................................................................ 114
DIGITAL BANKING UNITS (DBU) .................................................................................................................... 114
PUBLIC TECH PLATFORM FOR FRICTIONLESS CREDIT ............................................................................... 115
RBI DECIDES TO DISCONTINUE I-CRR.......................................................................................................... 116
RBI'S OPEN MARKET OPERATION (OMO) PLAN ........................................................................................... 118
GIFT CITY ....................................................................................................................................................... 119
'STAR SERIES' NUMBERING SYSTEM IN BANKNOTES ................................................................................ 120
RBI'S COIN VENDING MACHINES ................................................................................................................. 121
DE-DOLLARISATION ....................................................................................................................................... 122
VOSTRO ACCOUNTS AND FUNCTIONING ..................................................................................................... 124
DEFAULT LOSS GUARANTEE (DLG) ............................................................................................................... 124
INTEREST RATES KEPT UNCHANGED .......................................................................................................... 125
RBI REGULATIONS ON GREEN DEPOSITS .................................................................................................... 127
TOKENISATION............................................................................................................................................... 128
EXPECTED CREDIT LOSS (ECL) ..................................................................................................................... 129
PAYMENTS INFRASTRUCTURE ...................................................................................................................... 130
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ECONOMY: BASIC CONCEPTS
LINK BETWEEN GDP GROWTH AND EMPLOYMENT IN INDIA
Context: A recent report says the relationship between India's GDP growth and the generation of
employment for its people has become weaker over time.
India's GDP Growth and

What is GDP growth?
Employment:
The annual average rate of change of the gross According to the Economic Survey 2023-24,
domestic product (GDP) at market prices based on India's GDP growth for the fiscal year 2023-24 is
constant local currency, for a given national estimated to be 6.5%, down from 7.2% in 2022-
economy, during a specified period of time. 23.
Measurement: GDP average annual growth rates

are those estimated by the World Bank from the
The International Monetary Fund (IMF) projects
corresponding data in the United Nations's
India's GDP growth to be 6.1% in 2024-25, making
Systems of National Accounts expressed in 1995
it the fastest-growing major economy.
US dollars constant prices, using the least-squares
method.
However, the employment elasticity of growth,
The least-squares growth rate is estimated by
which measures the percentage change in
fitting a linear regression trend line to the
employment associated with a 1 percentage point
logarithmic annual values of the variable in the
change in economic growth, has been declining
relevant period.
over the years.
The calculated growth rate is an average rate that

is representative of the available observations The Central Statistics Office (CSO) data shows
over the entire period. It does not necessarily that the employment elasticity in India has fallen
match the actual growth rate between any two from 0.44 in the 1990s to 0.01 in the 2010s.
periods.
Global Context:
 The World Bank projects global GDP growth to slow down to 2.1% in 2024, from 3.2% in 2023,
due to high inflation, rising interest rates, and the ongoing Russia-Ukraine war.
 The International Labour Organization (ILO) estimates that the global unemployment rate will
remain at 5.8% in 2024, with the total number of unemployed exceeding 190 million.
Economic growth is a broad term that describes the process of increasing a
country's real gross domestic product (GDP).
Measurement: The growth can be measured as an expansion of real GDP or gross
national product (GNP) over a given period.
Economic Growth vs.
Economic Development: Economic development implies changes in income, savings and investment along
with progressive changes in socio-economic structure of country (institutional and
technological changes).
Measurement: There are several different measures of economic development,
such as the Human Development Index (HDI).
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NOMINAL GDP
Context: As per the statistics ministry's first advance estimate of national income for 2023-24,
India's nominal GDP is seen growing by 8.9 percent this year to Rs 296.58 lakh crore.
What is nominal GDP?
Nominal GDP is the total value of all goods and services produced in a given time
period less the value of those made during the production process.
GDP is the monetary value of all the goods and services produced in a country.
Nominal GDP is one way to measure how well the economy is doing.
It differs from real GDP in that the first one doesn't include the changes in prices due
to inflation.
Significance of nominal GDP:
As per the statistics ministry's first advance estimate of national income for 2023-24,
India's nominal GDP is seen growing by 8.9 percent this year to Rs 296.58 lakh crore.
The nominal GDP growth assumption is crucial to Budget calculations. For instance,
the absolute fiscal deficit as a percentage of nominal GDP for next year is a key
metric.
A higher nominal GDP growth number – and, consequently, a higher nominal GDP –
can make the fiscal deficit smaller as a percentage.
India's Tax-to-GDP Ratio:
According to the Economic Survey 2023-24, India's tax-to-GDP ratio is expected to hit
a record high of 12.1% in 2024-25, led by an uptick in the more 'equitable' direct
taxes.
The tax-to-GDP ratio represents a country's tax kitty relative to its GDP, indicating the
government's ability to finance its expenditure.
Simply put, it is the share of taxes in the overall output generated in the country.
A higher ratio denotes a wider fiscal net and reduced dependence on borrowings.
Impact of lower ratio:
A lower ratio poses challenges for the government's spending on critical infrastructure
and investments. It also strains fiscal deficit targets and constrains expenditure
despite robust economic growth.
Measures to potentially boost the ratio (to increase revenue):
Enhancing tax compliance

Implementing the Direct Tax Code
Rationalizing GST
Global Context:
 According to the Organisation for Economic Co-operation and Development (OECD), the average
tax-to-GDP ratio for OECD countries in 2023 was 33.8%.
 Denmark had the highest tax-to-GDP ratio at 46.3%, followed by France at 45.4% and Belgium
at 44.3%.
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 Mexico had the lowest tax-to-GDP ratio among OECD countries at 16.5%.
MULTIDIMENSIONAL POVERTY INDEX (MPI)
 Context: As per the Multidimensional Poverty Index 2023, the number of states with less than
10 per cent people living in multidimensional poverty doubled in the five years between 2016
and 2021.
 About the Report:
o Released by: NITI Aayog
o Title of the Report: 'National Multidimensional Poverty Index: A Progress of Review 2023'.
Approach used: It uses statistics from the National Family Health Survey (NFHS) to capture the
various dimensions of poverty in India.
INDICATORS
The report examines three broad indicators of
multidimensional poverty — health, education, and standard of
living, each comprising various sub-indicators.
oHealth (3 indicators): Nutrition, Child and

Adolescent Mortality, Maternal Health
oEducation (2 indicators): Years of

Schooling, School Attendance
oStandard of Living (7 indicators): Cooking

Fuel, Sanitation, Drinking Water, Electricity,
Housing, Assets and Bank Accounts
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KEY HIGHLIGHTS: IN TERMS OF STANDARD OF LIVING:
In terms of Health: Within the health NITI Aayog Multidimensional Poverty Index 2023
category, three sub-indicators — nutrition, shows 5 crore Indians escaped poverty between
child and adolescent mortality, and 2016 and 2021.
maternal health — showed only moderate Data suggests a big boost came from 'Standard of
improvement. living'
In terms of Education: There has been a According to the report, in 2015-16 (NFHS-4), only
slight reduction in the percentage of seven states had less than 10 per cent of their
people facing deprivation on the two sub- population living in multidimensional poverty —
indicators. Mizoram, Himachal Pradesh, Punjab, Sikkim, Tamil
The first indicator is "Years of schooling," Nadu, Goa, and Kerala.
where a household is considered deprived In 2019-21 (NFHS-5), the list had doubled to
if no member has completed at least six include 14 states, with the seven new additions
years of schooling. being Telangana, Andhra Pradesh, Haryana,
The second indicator is "school Karnataka, Maharashtra, Manipur, and
attendance," which considers a household Uttarakhand.
deprived if any school-age child does not All of these states saw a significant reduction in
attend school until completing class 8. poverty headcount ratios.
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Types of Poverty:
1. Absolute Poverty (Extreme Poverty):

Indicators: Living on less than $1.90 (World Bank) or ₹376 (World Inequality Lab) per day,
lacking access to basic necessities like food, clean water, sanitation, shelter, healthcare, and
education.
Global Context:
•Fact: According to the World Bank, in 2020, 736 million people lived in extreme poverty
globally.
•Ranking: The World Bank keeps track of poverty through its $1.90 a day metric. However,
rankings aren't assigned based on this metric.
Indian Context:
•Fact: The World Inequality Lab estimates 6% of Indians live below ₹376 per day.
•Data Source: World Inequality Lab Report 2024.
2. Relative Poverty:
Indicators: Income falling below 50% of the median national income, resulting in difficulty
affording basic necessities compared to the general population.
Global Context:
•Fact: The share of the poorest 40% in global income continues to decline ([IMF, World
Inequality Lab Report 2024]).
Indian Context:
•Data Source: Reliable data on the exact percentage of population in relative poverty in India
is unavailable due to challenges in defining the national poverty line. However, poverty
remains a significant concern, as evidenced by various socio-economic indicators.
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3. Situational Poverty:
Indicators: Temporary state of poverty caused by unforeseen circumstances like illness, job
loss, or natural disasters.
Global Context:
•Fact: The COVID-19 pandemic pushed millions into situational poverty worldwide ([World
Bank Report 2022]).
Indian Context:
•Fact: Demonetization and the COVID-19 pandemic are examples of events that caused
situational poverty in India.
4. Chronic Poverty:
Indicators: Persistent lack of resources and opportunities, often spanning generations,
limiting escape routes from poverty.
Global Context:
•Fact: Chronic poverty is concentrated in Sub-Saharan Africa and South Asia ([World Bank
Report 2022]).
Indian Context:
•Fact: Generational poverty is a major concern in India, particularly in rural areas. Caste
discrimination can also be a factor leading to chronic poverty.
5. Urban Poverty:
Indicators: Concentrated poverty in cities, characterized by slums, inadequate housing,
sanitation, and limited access to basic services and employment opportunities.
Global Context:
•Fact: The urban population living in slums is expected to reach 1.6 billion by 2040 ([UN
Habitat Report 2020]).
Indian Context:
•Fact: According to the Census 2011, India's slum population is around 61.7 million. Rapid
urbanization is exacerbating urban poverty challenges.
6. Rural Poverty:
Indicators: Prevalent in remote areas, linked to limited access to education, healthcare,
infrastructure, and dependence on rain-fed agriculture.
Global Context:
•Fact: Majority of the world's extreme poor live in rural areas ([World Bank Report 2022]).
Indian Context:
•Fact: Though declining, rural poverty in India remains a major challenge, with agriculture
still being the primary source of income for many.
7. Multidimensional Poverty:
Indicators: Deprivation across various dimensions like health, education, sanitation,
housing, and nutrition, captured by indices like the Multidimensional Poverty Index (MPI).
•Global MPI: Uses 10 indicators across three dimensions: health (child mortality, nutrition),
education (years of schooling, school attendance), and standard of living (cooking fuel,
sanitation, water, electricity, assets).
•National MPI (India): Uses 12 indicators across three dimensions: health (child mortality,
nutrition), education (years of schooling), and standard of living (cooking fuel, sanitation,
electricity, housing, assets).
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States that showed improvement:
 Jharkhand reduced the percentage of people living under

multidimensional poverty from 42% in 2015-16 to 28.82% in 2019-21.
 Uttar Pradesh saw a decline from 68% to 22.93%.
 In Madhya Pradesh, multidimensional poverty dropped from 57% to
20.63%.
Poverty Alleviating Schemes in India:
 Mahatma Gandhi National Rural Employment Guarantee Act 2005

(MNREGA)
 National Rural Livelihood Mission (NRLM)
 Pradhan Mantri Awaas Yojana-Gramin (PMAY-G)
 Public Distribution System (PDS)
 Housing for All
 Atal Mission for Urban Rejuvenation and Transformation (AMRUT)
 Smart Cities Mission Digital India
 Jan Dhan Yojana
 Make in India
Global Multidimensional Poverty Index (MPI):
 Published by: United Nations Development Programme (UNDP) and the

Oxford Poverty and Human Development Initiative (OPHI)
 The global MPI measures acute multidimensional poverty in over 100
developing countries. It uses 10 indicators across three dimensions:
health (nutrition, child mortality), education (years of schooling, school
attendance), and standard of living (cooking fuel, sanitation, drinking
water, electricity, housing, assets).
 According to the global MPI 2023, 1.1 billion people in 109 countries live
in acute multidimensional poverty.
 The countries with the highest proportion of people living in
multidimensional poverty are Niger (69.3%), South Sudan (68.2%), and
Central African Republic (68.0%).
 India has made significant progress in reducing multidimensional
poverty, with the proportion of people living in multidimensional poverty
falling from 55.1% in 2005-06 to 27.9% in 2015-16.
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GENDER INEQUALITY INDEX (GII)
Context: India has made significant progress in promoting gender equality, and has a value of 0.490
on the Gender Inequality Index (GII), the Economic Survey 2022-2023 stated.
THE GENDER INEQUALITY INDEX IS A

IMPORTANT GOVERNMENT POLICIES FOR COMPOSITE MEASURE, REFLECTING
WOMEN EMPOWERMENT IN INDIA: INEQUALITY IN ACHIEVEMENTS BETWEEN
WOMEN AND MEN IN THREE DIMENSIONS:
Beti Bachao Beti Padhao (BBBP) - The BBBP Reproductive health (maternal mortality ratio,
campaign was launched in 2015 with the aim adolescent birth rate)
of ensuring the protection, survival, and Empowerment (female and male population
education of the girl child. with at least secondary education, female and
Mahila Shakti Kendra (MSK) - The MSK male shares of parliamentary seats)
program was launched in 2017 to empower Labour market (female and male labour force
rural women with opportunities for skill participation rates)
development and employment. According to the Human Development Report
Working Women Hostel (WWH) - The WWH 2023, Switzerland has the lowest GII value of
initiative was launched in 2015 to provide safe 0.025, indicating a high level of gender
and secure accommodation for working women equality, while Yemen has the highest GII value
in urban areas. of 0.795, indicating a significant level of gender
Scheme for Adolescent Girls - This scheme was inequality.
launched in 2014 with the aim of empowering India's GII value of 0.490 places it at 123 out
girls in the age group 11-18 and improving their of 162 countries in the 2023 index.
social status through nutrition, life skills, home
skills, and vocational training.
Sukanya Samriddhi Yojana - Launched in
2015, this is an investment scheme that gives
interest on investment that can be used for
higher education or marriage expenses of the
girl child.
Gender Inequality Index (GII) - Published by:
United Nations Development Programme
(UNDP)
PURPLE ECONOMY
Context: The Purple Economy aims to overcome the fragility of the care economy at the national
and international levels and address the multiple and intersecting inequalities created by the
disproportionate reliance on women's unpaid and underpaid labour, and under-investment in the
care sector.
About:
 The Purple Economy, also sometimes referred to as the care economy, obtains its name from
the color adopted by many feminist movements.
 It represents a new vision of economics that recognizes the importance of care work,
empowerment, and autonomy of women to the functioning of economies, wellbeing of societies,
and life sustainability.
 Care work consists of two overlapping activities and can be paid or unpaid:
o Direct, personal, and relational care activities, such as feeding a baby or nursing an ill
partner
o Indirect care activities or domestic work, such as cooking and cleaning
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The purple economy is estimated to be worth $10.8 trillion
Significance
Economy:
of the Purple
globally, equivalent to 13% of the global GDP.
According to the International Labour Organization (ILO), women
perform 76.2% of total hours of unpaid care work globally, more
than three times as much as men.
In India, women spend an average of 297 minutes per day on
unpaid care work, compared to 31 minutes for men, as per the
Time Use Survey 2019 by the Ministry of Statistics and
Programme Implementation.
Investing in the care economy can create 269 million new jobs
by 2030, according to the ILO.
SUSTAINABLE DEVELOPMENT GOALS (SDGs) AND SMART CITIES MISSION (SCM)

Context: According to a recent report, over 70% of projects under the Smart Cities Mission (SCM)
are in alignment with the UN's Sustainable Development Goals (SDGs) on cities, clean water and
sanitation, clean energy, and economic growth.
Key Highlights of the Report:
Theme: "Smart Cities Mission, India: Localising Sustainable Development Goals".

Prepared by: The Union Housing and Urban Affairs Ministry and UN-Habitat.
Objective: The report demonstrates tangible and measurable impact towards the
achievement of SDGs, relying not solely on data but also on human stories and
perspectives.
Sustainable Goals achieved: According to the report, while the SCM projects have
largely contributed, in one way or the other, to 15 of the 17 SDGs.
•Nearly 44% were in line with the aim of SDG 11 — to make cities and human
settlements inclusive, safe, resilient and sustainable
•Around 13.3% of the SCM projects contributed to SDG 6 (Clean water and
sanitation);
•6% to SDG 7 (Affordable and clean energy)
•4% to SDG 8 (Decent work and economic growth)
The report mentioned that the SCM, with a total of 7,846 projects across 100 cities
showcases successful implementation of a national-scale urban mission that aligns
comprehensively with global agendas and empowers cities to drive sustainable
development.
What are SDGs?
The SDGs are a set of 17 targets that are part of the 2030 Agenda for Sustainable
Development, which was adopted by all UN member states, including India, in 2015.
These goals were designed to address a wide range of global challenges and
promote a better, more sustainable future for all by the year 2030.
The SDGs cover various dimensions of sustainable development, including
economic, social, and environmental aspects.
Page 19
The 17 Sustainable Development Goals:
Goal Objective
No Poverty End poverty in all its forms everywhere.
Zero Hunger End hunger, achieve food security and improved nutrition, and promote
sustainable agriculture.
Good Health and Well- Ensure healthy lives and promote well-being for all at all ages.
Being
Quality Education Ensure inclusive and equitable quality education and promote lifelong
learning opportunities for all.
Gender Equality Achieve gender equality and empower all women and girls.
Clean Water and Ensure availability and sustainable management of water and
Sanitation sanitation for all.
Affordable and Clean Ensure access to affordable, reliable, sustainable, and modern energy
Energy for all.
Decent Work and Promote sustained, inclusive, and sustainable economic growth, full
Economic Growth and productive employment, and decent work for all
Industry, Innovation, Build resilient infrastructure, promote inclusive and sustainable
and Infrastructure industrialization, and foster innovation.
Reduced Inequality Reduce inequality within and among countries.
Sustainable Cities and Make cities and human settlements inclusive, safe, resilient, and
Communities sustainable.
Responsible Ensure sustainable consumption and production patterns
Consumption and
Production
Climate Action Take urgent action to combat climate change and its impacts
Life Below Water Conserve and sustainably use the oceans, seas, and marine resources
for sustainable development.
Life on Land Protect, restore, and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, halt and reverse
land degradation and halt biodiversity loss
Peace, Justice, and Promote peaceful and inclusive societies for sustainable development,
Strong Institutions provide access to justice for all, and build effective, accountable, and
inclusive institutions at all levels.
Partnerships for the Strengthen the means of implementation and revitalize the global
Goals partnership for sustainable development.
India's Progress on SDGs:

 According to the NITI Aayog's SDG India Index 2020-21, India's overall SDG score improved by
6 points from 60 in 2019 to 66 in 2020-21.
 India saw significant improvement in the SDGs related to clean water and sanitation (Goal 6),
affordable and clean energy (Goal 7), industry, innovation, and infrastructure (Goal 9), and
sustainable cities and communities (Goal 11).
 However, India's performance on the SDGs related to zero hunger (Goal 2), gender equality
(Goal 5), and life on land (Goal 15) remained stagnant or declined.
 Global Progress on SDGs:
Page 20
 According to the Sustainable Development Report 2023, the world is not on track to achieve
the SDGs by 2030. the COVID-19 pandemic has led to a reversal in progress made on the SDGs,
particularly in developing countries.
 The countries that have made the most progress on the SDGs are Denmark, Sweden, and
Finland, while the countries that are furthest behind are Central African Republic, South Sudan,
and Chad.
FINANCIAL INCLUSION
Context: The Reserve Bank of India's Financial Inclusion Index (FI Index) has shown notable
improvement, reaching 60.1 in March 2023 compared with 56.4 in March 2022.
Important Initiatives taken in this regard:

PMJDY: Prime Minister's Jan Dhan Yojana (PMJDY), a pioneering initiative aimed at universal
banking access by providing zero-balance bank accounts to unbanked households. It has
helped bring over 50 crore people into the formal banking system.
The number of bank accounts under PMJDY has grown substantially from 14.72 crore in March
2015 to 50.99 crore by November 2023 (as on November 30).
Financial literacy:
NABARD promotes financial inclusion through initiatives like financial and digital literacy camps
conducted in remote areas. The support extends to technologies like micro-ATMs, point of sale
(POS) systems, kiosk banking outlets, BHIM app integration, Bharat Bill Payment System
(BBPS), Public Financial Management System (PFMS).
The RBI's National Strategy for Financial Inclusion (NSFI-2019-24) involves implementing the
Centre for Financial Literacy (CFL) scheme across the country, aiming for one CFL per 2-3
blocks.
Financial Inclusion in India:

According to the World Bank's Global Findex Database 2021, 78% of adults in India had an
account with a financial institution or mobile money service provider, up from 53% in 2014. The
gender gap in account ownership in India has narrowed from 20 percentage points in 2014 to
6 percentage points in 2021.
The RBI's Financial Inclusion Index (FI Index) captures information on various aspects of
financial inclusion in a single value ranging between 0 and 100, where 0 represents complete
financial exclusion and 100 indicates full financial inclusion.
The FI Index comprises three broad parameters (weights indicated in brackets) viz., Access
(35%), Usage (45%), and Quality (20%) with each of these consisting of various dimensions,
which are computed based on a number of indicators.
Page 21
Global Context:
 According to the World Bank's Global Findex Database 2021, globally, 76% of adults had an
account with a financial institution or mobile money service provider, up from 51% in 2011.
 However, 1.4 billion adults globally remain unbanked, with developing economies accounting
for a majority of this population.
 The gender gap in account ownership has narrowed from 9 percentage points in 2011 to 6
percentage points in 2021, but women in developing economies remain 8 percentage points
less likely than men to have an account.
INDIA'S GDP GROWTH AND GOVERNMENT EXPENDITURE
Context: India's Gross Domestic Product (GDP) is estimated to grow 7.3 per cent in 2023-24,
according to the first advance estimates of national income released by the National Statistical
Office (NSO). Higher investment coupled with government expenditure, are seen supporting the
higher GDP growth.
WHAT IS GOVERNMENT EXPENDITURE?

 Expenditure incurred by the Government are broadly divided into two categories:
 Revenue Expenditure: These are expenditures incurred for purposes of day to day expenses
rather than the creation of physical or financial assets of the central government. It relates
to:
• Expenses incurred for the normal functioning of the government departments and various
services;
• Interest payments on debt incurred by the government; and
• Grants given to state governments and other parties.
• Both Capital and Revenue expenditure are also categorized as plan and non-plan in the
budget documents.
• Plan expenditure relates to Expenditure on Central Plans and Central Assistance for State
and Union Territory plans.
• Non-plan expenditure covers a vast range of general, economic, and social services of the
government. The main items of non-plan expenditure are:
 Interest payments
 Defence services
• Subsidies
• Salaries
• Pensions
• Interest payments on market loans, external loans and from various reserve funds
constitute the single largest component of non-plan revenue expenditure.
• Capital Expenditure
• These are government expenditures which result in the creation of physical or financial
assets or reduction in financial liabilities. These include:
• Expenditure on the acquisition of land, building, machinery, equipment, investment in
shares, and
• Loans and advances by the central government to State and Union Territory
governments, PSUs and other parties.
Page 22
India's GDP Growth and Government Expenditure:
 According to the Economic Survey 2023-24, India's GDP growth is expected to be in the range
of 6.0% to 6.8% in 2024-25, depending on the trajectory of economic and political
developments globally.
 The government's capital expenditure is budgeted to increase by 37.4% to Rs 10 lakh crore
(3.3% of GDP) in 2023-24, which will have a multiplier effect on the economy.
 The central government's revenue expenditure is budgeted to increase by 1.2% to Rs 35.02
lakh crore (11.6% of GDP) in 2023-24.
 The government's total expenditure is budgeted to increase by 7.5% to Rs 45.03 lakh crore
(14.9% of GDP) in 2023-24.
Global Context:
 According to the IMF's World Economic Outlook (April 2024), global growth is projected to fall
from an estimated 3.5% in 2023 to 3.3% in 2024.
 Advanced economies are expected to grow by 2.1% in 2024, while emerging market and
developing economies are projected to grow by 4.4%.
 Governments around the world have increased spending to support their economies during the
COVID-19 pandemic, leading to a sharp rise in public debt levels.
 According to the IMF, global public debt is estimated to have reached 97% of GDP in 2023, up
from 84% in 2019.
REVENUE DEFICIT
Context: The 15th Finance Commission had proposed reducing the fiscal deficit to 4.5 percent of
the gross domestic product, by FY 2026.
A country's fiscal balance is measured by its government's revenue vis-a-vis its

expenditure in a given financial year.
Fiscal deficit is the condition when the expenditure of the government exceeds
its revenue in a year.
Fiscal deficit is calculated both in absolute terms and as a percentage of the
country's gross domestic product (GDP).
What is Components of the Fiscal Deficit Calculation: The fiscal deficit calculations are
based on two components — income and expenditure.
Fiscal
Income component: The income component is made of two variables, revenue
generated from taxes levied by the Centre and the income generated from non-
tax variables.
Deficit? •The taxable income consists of the amount generated from corporation tax,
income tax, Customs duties, excise duties, GST, among others.
•The non-taxable income comes from external grants, interest receipts,
dividends and profits, receipts from Union Territories, among others.
Expenditure component: The government in its Budget allocates funds for
several works, including payments of salaries, pensions, emoluments, creation
of assets, funds for infrastructure, development, health and numerous other
sectors that form the expenditure component.
Page 23
Tax Revenue Non-Tax Revenue
Income tax: Taxes on individual salaries and income. Interest receipts on account of loans
by the central government;
Corporate tax: Taxes on firms and corporations. Dividends and profits on investments
made by the government;
Excise duties: Duties levied on goods produced within the Fees and other receipts for services
country. rendered by the government; and
Customs duties: Duties imposed on goods imported into Cash grants-in-aid from foreign
and exported out of India. countries and international
organisations
Service tax: Tax levied by the government on service
providers on certain service transactions.
Wealth tax: Charged on the net wealth of the assesse. It
is a tax on the benefits derived from ownership of
property.
Gift tax: Tax on the transfer of property by one individual
to another while receiving nothing, or less than full value,
in return.
India's Fiscal Deficit:

According to the The primary
Union Budget deficit (fiscal
The revenue
2023-24, India's The government deficit excluding
deficit is estimated
fiscal deficit is has set a target of interest payments)
to be 2.9% of GDP
estimated to be reducing the fiscal is estimated to be
in 2023-24, down
5.9% of GDP in deficit to 4.5% of 2.3% of GDP in
from 3.8% in
2023-24, down GDP by 2025-26. 2023-24, down
2022-23.
from 6.4% in from 2.8% in
2022-23. 2022-23.
Global Context:
 According to the IMF's Fiscal Monitor (April 2024), global fiscal deficits are projected to decline
from 7.1% of GDP in 2023 to 5.7% of GDP in 2024.
 Advanced economies are expected to have fiscal deficits of 4.7% of GDP in 2024, while
emerging market and developing economies are projected to have deficits of 6.8% of GDP.
 The COVID-19 pandemic has led to a sharp increase in fiscal deficits and public debt levels
around the world, as governments have increased spending to support their economies.
 According to the IMF, global public debt is estimated to have reached 97% of GDP in 2023, up
from 84% in 2019.
Page 24
INDIA'S CURRENT ACCOUNT DEFICIT
Context: India's merchandise trade deficit

dipped to a 12-month low in January 2023, while
services trade surplus rose.
Page 25
What is Merchandise Trade deficit?
Merchandise trade statistics record all goods which add to, or subtract from, the stock
of material resources of a country by entering (as imports) or leaving (as exports) its
economic territory.
The merchandise trade balance measures the difference between imports and exports
of goods.
A Merchandise trade deficit is an amount by which the cost of a country's imports
exceeds its exports.
What is Services trade surplus?
A trade surplus is an economic measure of a positive balance of trade, where a

country's exports exceed its imports.
It is the opposite of a trade deficit.
A trade surplus can create employment and economic growth, but may also lead to
higher prices and interest rates within an economy as well as a more expensive
currency.
The Current account deficit (CAD):
The current account records exports and imports in goods and services and transfer
payments.
It represents a country's transactions with the rest of the world and, like the capital
account, is a component of a country's Balance of Payments (BOP).
There is a deficit in Current Account if the value of the goods and services imported
exceeds the value of those exported.
Major components are:
•Goods,
•Services, and
•Net earnings on overseas investments (such as interests and dividend) and net
transfer of payments over a period of time, such as remittances.
India's Current Account Deficit:
According to the Reserve Bank of India (RBI), India's current account deficit (CAD)
increased to 2.7% of GDP in the third quarter of 2023-24, from 1.3% in the previous
quarter.
The widening of the CAD was primarily on account of a higher trade deficit and lower
net invisible receipts.
For the full year 2023-24, the RBI expects the CAD to be around 2.5% of GDP, up from
1.2% in 2022-23.
Page 26
Global Context:
 According to the IMF's World Economic Outlook (April 2024), global current account balances
(the sum of absolute deficits and surpluses) are projected to decline from 3.2% of world GDP in
2023 to 2.5% in 2024.
 The United States is expected to have the largest current account deficit in 2024, at $598 billion
(2.4% of GDP), followed by the United Kingdom at $140 billion (4.2% of GDP).
 China is projected to have the largest current account surplus in 2024, at $304 billion (1.8% of
GDP), followed by Germany at $268 billion (6.5% of GDP).
Page 27
DEFLATION
Context: China's economy has now entered a period of deflation.
Deflation is a general decline in prices for goods and services, typically

associated with a contraction in the supply of money and credit in the economy.
What is During deflation, the purchasing power of currency rises over time.
deflation?
•Deflation benefits consumers because they can purchase more goods and
services with the same nominal income over time.
•However, economists are often concerned about the consequences of falling
prices on various sectors of the economy, especially in financial matters.
•For instance, deflation can harm borrowers, who can be bound to pay their
debts in money that is worth more than the money they borrowed, as well as
Impact: any financial market participants who invest or speculate on the prospect of
rising prices.
China's consumer price index (CPI) fell by 0.3% year-on-year in July 2024, the
first deflation since February 2021.
The producer price index (PPI) fell by 4.4% year-on-year in July 2024, the tenth
consecutive month of decline.
The deflation in China is attributed to weak domestic demand, overcapacity in
Deflation in some industries, and falling global commodity prices.
The People's Bank of China (PBOC) has cut interest rates and reduced the
China: reserve requirement ratio (RRR) for banks to stimulate the economy and
combat deflation.
According to the IMF's World Economic Outlook (April 2024), global inflation is
projected to fall from 4.7% in 2023 to 3.5% in 2024.
Advanced economies are expected to have inflation of 2.6% in 2024, while
emerging market and developing economies are projected to have inflation of
4.5%.
Some countries, such as Japan and Switzerland, have experienced periods of
Global deflation in recent years due to weak domestic demand and low inflation
expectations.
Context: Central banks around the world have adopted unconventional monetary
policies, such as quantitative easing (QE) and negative interest rates, to
combat deflation and stimulate economic growth.
Page 28
TWIN DEFICIT CHALLENGE
Context: In its monthly economic review in June 2022, the Ministry of Finance spoke about India's
"twin deficit problem"—of rising fiscal deficit and current account deficit (CAD).
What is the twin deficit challenge?
 Twin deficit refers to the fiscal and current account deficit.

 Fiscal deficit means higher expenditure over income. The gap between
expenditure and income is bridged through borrowing from market.
 Current account deficit is derived from current account balance. According
to the OECD, the current account balance of payments is a record of a
country's international transactions with the rest of the world.
 The current account includes all the transactions (other than those in
financial items) that involve economic values and takes place between
resident and non-resident entities. Also covered are offsets to current
economic values provided or acquired without a quid pro quo.
 This indicator is measured in million USD and percentage of GDP.
India's Twin Deficit Challenge:
 According to the Economic Survey 2023-24, India's fiscal deficit is

estimated to be 5.9% of GDP in 2023-24, down from 6.4% in 2022-23.
 India's current account deficit (CAD) increased to 2.7% of GDP in the third
quarter of 2023-24, from 1.3% in the previous quarter.
 The twin deficit challenge can put pressure on the country's foreign
exchange reserves and lead to a depreciation of the rupee.
 The government has taken steps to reduce the fiscal deficit, such as
increasing tax revenue and reducing subsidies, while the RBI has
intervened in the foreign exchange market to stabilize the rupee.
Global Context:
 According to the IMF's World Economic Outlook (April 2024), the global
fiscal deficit is projected to decline from 7.1% of GDP in 2023 to 5.7% of
GDP in 2024.
 The global current account balance (the sum of absolute deficits and
surpluses) is projected to decline from 3.2% of world GDP in 2023 to 2.5%
in 2024.
 Countries with twin deficits, such as the United States and the United
Kingdom, are vulnerable to external shocks and may face challenges in
financing their deficits.
 Some countries, such as Germany and South Korea, have consistently run
current account surpluses, which can lead to trade tensions with deficit
countries.
Page 29
BIFLATION
Context: Inflation is on rise around the globe and so is 'biflation'.
What is biflation?
 Biflation is the simultaneous occurrence of inflation and

deflation in an economy.
 Biflation is a neologism for a type of Cantillon effect
which occurs when expansionary monetary policy is
applied to alleviate a recession.
 It is a specific type of Cantillon effect.
 It happens when during a period of debt deflation (and
resulting recession) the central bank pumps money into
the economy in an attempt to re-inflate asset prices.
Biflation in India:
 According to the Economic Survey 2023-24, India faced

biflation in 2022-23, with inflation in some sectors (such
as food and energy) and deflation in others (such as
manufacturing).
 The consumer price index (CPI) inflation averaged 6.7%
in 2022-23, above the RBI's target range of 2-6%, while
the wholesale price index (WPI) inflation averaged 9.8%.
 The RBI has raised interest rates and reduced liquidity to
control inflation, while the government has taken steps to
boost manufacturing and exports to combat deflation.
Global Context:
 According to the IMF's World Economic Outlook (April 2024), global inflation is projected to fall
from 4.7% in 2023 to 3.5% in 2024.
 However, some countries, such as Argentina and Turkey, are facing high inflation due to
expansionary monetary policies and weak currencies.
 Other countries, such as Japan and Switzerland, are facing deflation due to weak domestic
demand and low inflation expectations.
 Central banks around the world are facing the challenge of balancing the need to control
inflation with the need to support economic growth and financial stability.
Page 30
GREEDFLATION
Context: During a recent surge in inflation, the prices of tomatoes have experienced a significant
increase within a month, affecting multiple cities in India the most. Although there is a reasonable
explanation for this price surge, some speculate that it could be attributed to a phenomenon known
as 'greedflation'.
Greedflation is currently on the rise in the United States and is one of the
primary reasons why prices are being driven up in the country.
In basic terms, is the inflation and hike in prices not driven by economic
flow, but by corporate greed.
It is termed as the inflation in prices of basic commodities which is driven
by the companies to increase their profit margins.
What is Greedflation simply means big corporations squeezing out money from
customers by jacking up the prices of their products, only to increase
Greedflation? their profit margins.
According to a report by the Economic Times, the prices of tomatoes in

India increased by up to 400% in some cities in July 2024 due to a
combination of factors, including unseasonal rains, supply chain
disruptions, and alleged hoarding by traders.
The report suggests that some traders may have taken advantage of the
supply shortage to increase their profit margins, leading to greedflation.
Greedflation The government has taken steps to increase the supply of tomatoes and
crack down on hoarding, including importing tomatoes from neighboring
in India: countries and conducting raids on warehouses.
Page 31
Global Context:
 According to a report by the World Economic Forum, greedflation is a global phenomenon, with
companies in various sectors, such as pharmaceuticals, technology, and consumer goods,
using their market power to increase prices and profits.
 The report suggests that greedflation can lead to increased inequality, as low-income
households are disproportionately affected by rising prices of essential goods and services.
 Some governments have taken steps to combat greedflation, such as imposing price controls,
increasing competition, and strengthening consumer protection laws.
 However, critics argue that such measures can lead to market distortions and reduce incentives
for innovation and investment.
NOBEL ECONOMICS PRIZE 2023
Context: The Nobel Memorial Prize in Economic Sciences has been awarded to Claudia Goldin for
having advanced our understanding of "women's labour market outcomes."
About:
 The Royal Swedish Academy of Sciences in Stockholm has been given this award.
 Claudia Goldin has worked in creating "the first comprehensive account of women's earnings
and labour market participation through the centuries".
 She is one among the other three women who received the Nobel Prize for economics since its
inception.
 Despite decades of progress, women remain underrepresented in the workforce and earn less
than their male counterparts.
 Goldin's analysis of more than 200 years of U.S. labor force data shows how employment rates
and the gender wage gap depend not just on the economy but also on evolving social norms
related to women's education and roles in the home and family.
Understanding Women's Role in Economy in India:
•The present contribution of women to the National GDP is around

18%.
Sector-wise contribution:
 In India, women comprise 48% of the agricultural workforce and own only 13% of
the land. Women in India constitute around 20% of the manufacturing workforce
and around 30% of the total workforce in the services sector.
 At present, there are 432 million women of working age in India, out of which
343 million are employed in the unorganized sector.
 India has the 3rd largest ecosystem in terms of Startups in the world, and 10% of
them have been led by women founders.
 Also, research shows that ventures started by women are more sustainable in
nature.
Page 32
Challenges faced by Working Women Impacts
Pay Disparity: World Inequality Report of 2022 Lesser economic gains
noted that men earn 82% of the labour income
while women earn 18% of it.
Sexual harassment Lesser growth or stagnant growth
Pregnancy discrimination Imposter syndrome
Ignorance and lack of sensitivity Less diversified Skill-Set
Global Context:
 According to the World Economic Forum's Global Gender Gap Report 2023, the global gender
gap has been closed by 68.1%, with the highest levels of parity achieved in education (95.4%)
and health (96.1%).
 However, the economic participation and opportunity gap remains the largest at 42.1%, with
only 58.9% of women participating in the labor force, compared to 92.4% of men.
 The report estimates that it will take another 132 years to close the global gender gap at the
current rate of progress.
 Some countries, such as Iceland, Finland, and Norway, have made significant progress in
reducing gender inequalities, while others, such as Afghanistan, Pakistan, and Yemen, have a
long way to go.
 Governments and businesses around the world are taking steps to promote gender equality,
such as setting gender diversity targets, providing parental leave and childcare benefits, and
addressing gender-based violence and discrimination.
Page 33
INFRASTRUCTURE
NATIONAL HIGHWAYS
Context: India has made significant progress in building national highways, connecting passenger,
trade, and freight points. About 13,800 km of highway construction is planned with an outlay of
Rs 2.81 lakh crore in 2023-24, a 33% increase from the previous year.
Key Highlights:
•India has the world's second-largest road network, spanning over 6.37 million kilometers.
•Length: The total length of highways has grown from 97,830 kilometers in 2014 to
145,155 kilometers as of April 2024.
•Budget allocation: The government's budget support for road infrastructure has rapidly
increased, reaching approximately 1.6 lakh crore in FY23-24.
•Strategic projects: Bharatmala Pariyojana, Narmada Valley Development Project, Atal
Tunnel, Dhola-Sadiya Bridge, Chenab River Bridge, Delhi Metro Industrial Corridor,
Mumbai Trans Harbour Link, Inland WaterWays Development Project, Navi Mumbai
International Project, and Zoji-la and Z-Morh Tunnel Project.
Indian Context:
 India has constructed 13,450 km of national highways in FY23-24, surpassing the previous
year's record of 12,200 km.
 The National Highways Authority of India (NHAI) has awarded contracts for 12,500 km of
highway projects in FY23-24.
 The total length of national highways in India has reached 151,000 km as of April 2024.
 Global Context:
 According to the World Economic Forum's Global Competitiveness Report 2024, India ranks
48th out of 141 countries in terms of road connectivity.
 India has set a target of constructing 60,000 km of national highways by 2026, which would
make it the country with the fastest highway construction rate globally.
RAILWAYS
Context: India's railways have undergone substantial modernization and expansion.
Key Highlights:
•Budget allocation: Capital expenditure on railway infrastructure has steadily increased over the past five years,
with a budget of `3.0 lakh crore allocated in FY23-24, representing a 20% rise compared to the previous year.
•Electrification: Electrification of railway tracks has reached 42,000 route kilometers as of April 2024.
•Safety: In 2023, the successful implementation of KAVACH, an advanced electronic system designed to help
Indian Railways achieve zero accidents, has been extended to 5,000 km of railway tracks.
•High-speed trains: The expansion of the Vande Bharat Express, now functional on 40 routes, showcases
India's commitment to high-speed rail travel.
Infrastructure projects: The ongoing construction of a high-speed line between Mumbai and Ahmedabad, with
Japanese collaboration, and the development of new freight corridors will further boost connectivity, reduce travel
time, and facilitate the efficient movement of goods and passengers
Page 34
Indian Context:
 Indian Railways has electrified 42,000 route kilometers, achieving 100% electrification of
broad gauge routes.
 The KAVACH system has been implemented on 5,000 km of railway tracks, with plans to cover
the entire network by 2028.
 The Vande Bharat Express has been introduced on 40 routes, connecting major cities across
India.
Global Context:
 According to the UIC World Rail Rankings 2024, Indian Railways ranks 4th globally in terms of
network size, with 68,155 km of tracks.
 India has the world's largest electrified railway network, with 42,000 route kilometers
electrified as of April 2024.
INLAND WATERWAYS
Context: India recognizes the immense potential of its waterways in establishing a sustainable
logistics sector.
Key Highlights:
National Waterways: The government's focus on inland water transport has led to the declaration of 111 National
Waterways.
Cargo movement: The cargo movement on these waterways reached a record high of 125 million tons in FY23, reflecting a
growth of 15% compared to the previous year.
Legislative support: The Inland Vessels Bill 2021 further facilitates the growth of inland water transport, creating a robust
multi-modal transport ecosystem and fostering ease of doing business.
Sagarmala Project: Additionally, the Sagarmala Project aims to develop ports, streamline compliances, and reduce vessel
turnaround time.
Ports: There are 12 major ports and over 200 non-major ports in the country, along the 7,500-km long coastline. Vadhavan
Port in Maharashtra, which is under construction, would be the 13th major port in India.
Indian Context:
 The cargo movement on national waterways has reached 125 million tons in FY23, a 15%
increase from the previous year.
 The Jal Marg Vikas Project, aimed at developing the Ganga River as a navigable waterway, has
been completed, enabling the movement of large vessels between Varanasi and Haldia.
 The Vadhavan Port in Maharashtra, with a capacity of 250 million tons per annum, is expected
to be operational by 2026.
Global Context:
 According to the World Bank's Logistics Performance Index 2024, India ranks 44th out of 160
countries in terms of logistics performance, a significant improvement from its rank of 54th in
2023.
Page 35
 India's share in global maritime trade has increased to 3.5% in 2024, up from 2.8% in 2023.
AVIATION
Context: India's aviation sector has experienced substantial growth, positioning the country as the
world's third-largest market.
Key Highlights:
MRO hub: The

Regional connectivity:
upcoming greenfield
To promote regional
Noida International Operational airports:
connectivity and Airport expansion: The Greenfield airports:
Airport will also be the As of June 2024, 138
revive unserved or number of airports The government has
country's largest airports are in
underserved airports, with civilian flights accorded 'in-principle'
center for aircraft operation in India, of
the government has has doubled in the approval for setting
maintenance, repair, which 32 are
allocated a budget of last ten years, from up 21 greenfield
and operation (MRO), international, 96 are
`5,000 crores under 74 in 2014 to 155 in airports across the
bolstering the aviation domestic, and 10 are
the Ude Desh ka Aam 2024. country.
sector and generating Custom airports
Nagarik (UDAN)
employment
scheme.
opportunities.
Indian Context:
 India's domestic air passenger traffic has reached 400 million in FY23-24, a 20% increase
from the previous year.
 The Noida International Airport, with a capacity to handle 70 million passengers annually, is
expected to be operational by 2024.
 The government has approved the construction of 21 new greenfield airports, taking the total
number of airports in India to 159.
Global Context:
 According to the International Air Transport Association (IATA), India is expected to become the
world's third-largest aviation market by 2025, surpassing the UK.
 India's share in global air passenger traffic has increased to 5.2% in 2024, up from 4.1% in
2023.
AIRPORT CODES
Context: The global aviation body International Air Transport Association (IATA) has assigned the
code 'DXN' to the greenfield airport coming up at Jewar in the Gautam Buddha Nagar district of
Uttar Pradesh.
Key Highlights:
 DXN was one among three options shared by Noida International Airport for its IATA code.
 The global aviation body approved DXN as the airport code for the airport, which is slated for
launch by the end of 2024.
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•Airport codes are unique identifiers assigned to each airport.
•While most people are familiar only with the codes assigned by IATA,
each airport has two unique codes – the other assigned by the
International Civil Aviation Organization (ICAO), an arm of the United
Nations.
•Both are used to accurately identify airports, but in different contexts:
•The three-digit IATA codes are used for passenger-facing operations –
on tickets, boarding passes, signages, etc.
•The four-digit codes assigned by the ICAO are used by industry
About Airport professionals such as pilots, air traffic controllers, planners, etc.
•Airport coding began in the 1930s, in the early days of commercial
Codes: aviation. Airlines and pilots initially chose their own two-letter codes to
identify destinations.
•By the 1940s, as the number of airports grew exponentially, a system
of three-letter codes was devised (allowing for a far higher number of
combinations) and eventually standardized in the 1960s by the IATA.
INFRASTRUCTURE PUSH AT LAC

Context: Robust infrastructure in border areas is a strategic asset for any country, and India
understands this well. All along the Line of Actual Control (LAC), India has ramped up
infrastructure development in an unprecedented way.
Key Highlights:
 In just the past three years, 225 projects have been completed along the LAC.
 The government has increased the budget for the Border Roads Organisation (BRO) by 150%.
 India inaugurated nearly 100 infrastructure projects (70 in Arunachal Pradesh, Ladakh, and
Sikkim) along the Line of Actual Control (LAC) with China, which includes:
 Nyoma Advanced Landing Ground in Eastern Ladakh (set to become the highest airfield in the
world)
 Nechiphu Tunnel in Arunachal Pradesh
 Shinku La tunnel on the Ladakh-HP border (once completed, it will be the world's highest)
 Se La tunnel
 Devak Bridge on the Bishnah-Kaulpur-Phulpur Road in J&K's Samba district
 Bagdogra and Barrackpore airfields in West Bengal
Indian Context:
 The BRO has completed the construction of the Sela Tunnel in Arunachal Pradesh, providing
all-weather connectivity to Tawang.
 The Nyoma Advanced Landing Ground in Eastern Ladakh has been operationalized, becoming
the world's highest airfield at an altitude of 13,700 feet.
 The construction of the Shinku La tunnel on the Ladakh-HP border has been completed,
making it the world's highest tunnel at an altitude of 16,580 feet.
 Global Context:
 According to the Global Infrastructure Outlook 2024, India is expected to invest $1.5 trillion in
infrastructure projects by 2030, with a significant focus on border infrastructure.
Page 37
 India's border infrastructure development has been recognized globally as a key factor in
maintaining regional stability and deterring potential conflicts.
REGIONAL RAPID TRANSIT SYSTEM (RRTS), OR RAPIDX
Context: Prime Minister Narendra Modi has unveiled the priority section of the 82-km long Delhi-
Ghaziabad-Meerut Regional Rapid Transit System (RRTS), or RAPIDX.
About RAPIDX:
•Dubbed 'Namo Bharat', RRTS is India's first semi-high-speed regional rail service.
•The corridor will cover Delhi, Ghaziabad, and Meerut in Uttar Pradesh.
•Speed: Billed as India's fastest inter-state transit system, the air-conditioned RAPIDX trains will
have an operational speed of 180 kilometers per hour.
•The average speed of 110 kmph of these RAPIDX trains sets them apart from the Metro as
well as the Indian Railways trains.
•Execution: The RRTS project is executed by the National Capital Region Transport Corporation
(NCRTC), a joint venture between the Centre and the governments of Delhi, Haryana,
Rajasthan, and Uttar Pradesh
•In other parts of the world, equivalent systems include London's Crossrail, Paris' RER, and
Munich's S-Bahn.
Benefits:
•These trains are intended to provide a comfortable alternative to road travel as well as
decongest Delhi's roads.
•The RRTS project could take 1.5 lakh passenger vehicles off the roads once fully functional.
•It may also help in easing Delhi's pollution woes.
•It would encourage sustainable development by lowering carbon emissions.
•The corridor is expected to be completed by December 2025.
Indian Context:
 The Delhi-Ghaziabad-Meerut RRTS corridor has been partially operationalized, with the priority
section between Sahibabad and Duhai (17 km) open for public use.
 The NCRTC has awarded contracts for the construction of the remaining sections of the Delhi-
Ghaziabad-Meerut RRTS corridor, with a target completion date of December 2025.
 The government has approved the Delhi-Panipat RRTS corridor, which will connect Delhi with
Panipat via Sonipat.
Global Context:
 According to the International Association of Public Transport (UITP), the Delhi-Ghaziabad-
Meerut RRTS is one of the top 10 rapid transit projects globally in terms of network length and
investment.
 The success of the RRTS project in the National Capital Region has generated interest from
other countries, with delegations from Bangladesh, Sri Lanka, and Indonesia visiting India to
study the system.
Page 38
PM GATI SHAKTI NMP
Context: The Central Government has launched the Gati Shakti program with a vision to bring all
major mobility infrastructure projects of various ministries and state governments under one
umbrella.
•The PM Gati Shakti NMP was launched in October 2021.

•Objective: Holistic integration of various ministries and addressing
gaps to ensure infrastructure for the seamless movement of people,
goods, and services.
•The PM Gati Shakti National Master Plan is driven by seven engines
What is PM – roads, railways, airports, ports, mass transport, waterways, and

logistics infrastructure.
•Composition: The NPG is composed of representatives from various
Gati Shakti connectivity infrastructure ministries and departments.
•These representatives include the heads of the network planning
NMP? division, and their purpose is to ensure unified planning and
integration of the proposals.
•Development this fiscal: As of this fiscal year, a total of 110 major
infrastructure projects worth Rs 6.5 lakh crore from various
ministries have been recommended for approval under the initiative.
•All logistics and connectivity infrastructure projects requiring
investments of over Rs 500 crore are directed through the NPG.
Indian Context:
 The PM Gati Shakti NMP has facilitated the synchronized planning and execution of 150
infrastructure projects worth Rs 8 lakh crore across various sectors.
 The Unified Logistics Interface Platform (ULIP), developed under the PM Gati Shakti NMP, has
onboarded 25 government agencies and 150 private sector stakeholders, streamlining
logistics operations.
 The National Master Plan has been updated with the inclusion of 5,000 layers of data,
providing a comprehensive view of infrastructure development in the country.
Global Context:
 The World Bank has recognized the PM Gati Shakti NMP as a global best practice in
infrastructure planning and development, recommending its adoption by other developing
countries.
 The Asian Infrastructure Investment Bank (AIIB) has committed $1 billion in funding for
projects aligned with the PM.
INDIA INFRASTRUCTURE REPORT 2023
Context: The India Infrastructure Report 2023 on Urban Planning and Development was released
recently.
About IIR 2023:
 The India Infrastructure Report (IIR) 2023 is a collaborative effort of the IDFC Foundation,
Infrastructure Development Corporation (Karnataka) Ltd. (iDeCK), and the National Institute of
Urban Affairs (NIUA).
Page 39
 This annual publication has been instrumental in identifying and analyzing legal, fiscal,
regulatory, technological, social, and conceptual aspects related to contemporary themes
relevant to infrastructure development.
 This makes it an invaluable resource for those involved in formulating urban policy, as well as
for those interested in the development of India's infrastructure and urbanization, such as
policymakers, investors, academics, financiers, and multilateral agencies.
Key Highlights of the India Infrastructure

Report 2023:
Examination of financial Urban transportation
Spotlight on the
dimensions of urban planning and urban
transformative potential of
development, with a special redevelopment as pivotal
digital technology in shaping
emphasis on public-private components of effective
the urban landscape of
partnerships (PPPs), the urban governance through
India. Focus areas include
financial sustainability of transit-oriented
the concept of 'smart cities'
urban local bodies, and the development, efficient
and the significance of
efficacy of municipal bonds urban goods movement,
performance ranking
as potent financing and floor space and land
criteria.
instruments. price regulation in India.
Indian Context
 The Ministry of Housing and Urban Affairs has launched the National Urban Digital Mission
(NUDM) to create a digital infrastructure for cities, in line with the recommendations of the IIR
2023.
 The government has announced the development of 25 new 'smart cities' across the country,
taking the total number of smart cities to 125.
 The Municipal Bonds Market in India has seen significant growth, with 15 cities issuing
municipal bonds worth Rs 10,000 crore in FY23-24.
Global Context
 According to the United Nations' World Urbanization Prospects 2024, India is expected to add
416 million urban dwellers by 2050, the highest among all countries.
 The World Bank has pledged $1 billion in support of India's urban development initiatives,
recognizing the country's efforts in promoting sustainable urbanization.
WORLD'S FIRST CNG TERMINAL AT BHAVNAGAR, GUJARAT
Context: Prime Minister Narendra Modi laid the foundation stone for the "world's first CNG
(Compressed Natural Gas) terminal" at Bhavnagar in Gujarat recently.
About the Project:
 This is a three-year-old project that is expected to infuse Rs 4,000 crore into developing the
existing port infrastructure at Bhavnagar.
 The idea for the project materialized during the January 2019 Vibrant Gujarat summit when a
consortium of London-based Foresight Group, Mumbai-based Padmanabh Mafatlal Group,
Page 40
and Rotterdam-based Boskalis signed a Memorandum of Understanding (MoU) with Gujarat
Maritime Board (GMB) for the development of the CNG terminal.
 The consortium will invest in developing the north side of the Bhavnagar port under the BOOT
(Build, Own, Operate, and Transfer) policy of the state government, and state-run GMB will
continue to operate the berths on the south side of the port.
 Why Bhavnagar port? The port is in close vicinity to the Dholera Special Investment Region
(SIR) and is expected to serve the industries that set up base in the region.
 It is already connected to the northern hinterland through a railway line that extends to the
existing berths at the port.
 It is expected to be made operational by 2026. The proposed port terminal's capacity is 4.65
Million Tonnes Per Annum (MTPA), of which the capacity of the CNG terminal will be 0.3 MTPA.
Indian Context:
 The construction of the CNG terminal at Bhavnagar port has commenced, with the project
achieving 30% completion.
 The Ministry of Ports, Shipping, and Waterways has announced plans to develop CNG
terminals at five more ports across the country, following the success of the Bhavnagar model.
 The Bhavnagar CNG terminal has attracted investments from major global players in the CNG
sector, including Shell and Total.
Global Context
 The Bhavnagar CNG terminal has been recognized as a pioneering project globally, with
several countries expressing interest in replicating the model.
 The International Gas Union (IGU) has lauded India's efforts in promoting the use of CNG in
the maritime sector, citing the Bhavnagar terminal as a key example.
CENTRE OF EXCELLENCE FOR GREEN PORT & SHIPPING (NCoEGPS)
Context: The Union Minister of Ports, Shipping & Waterways (MoPSW) launched India's first Centre
of Excellence for Green Port & Shipping to provide Green solutions to transform the Ports &
Shipping sector in India.
About NCoEGPS:
•Aim: To develop a regulatory framework and alternate technology adoption roadmap for Green Shipping to
foster carbon neutrality and a circular economy (CE) in the shipping sector in India.
•NCoEGPS will act as a technological arm of MoPSW for providing the needed support on Policy, Research,
and Cooperation on Green Shipping areas for Ports, DG Shipping, Corporate Social Lendings, and other
institutions.
•The Center will be a host of several technological arms to support the port and shipping sector and will
provide solutions to a variety of problems being faced in the industry through scientific research.
It will focus on the following areas:

•Energy Management - Energy management tools, waste energy recovery systems
•Emission Management - Alternate, clean Energy/ Fuel, emission control & monitoring
•Sustainable Maritime Operations – novel technologies and approaches
Indian Context:
•The NCoEGPS has developed a Green Port Policy framework, which has been adopted by 10 major ports in
the country.
•The Centre has collaborated with IIT Madras to develop a indigenous alternate fuel for the shipping sector,
aiming to reduce emissions by 30%.
•The NCoEGPS has conducted training programs for 500 port and shipping professionals on sustainable
maritime practices.
Page 41
Global Context:
 The International Maritime Organization (IMO) has recognized India's NCoEGPS as a global
leader in promoting sustainable shipping practices.
 The Centre has been invited to share its expertise at various global forums, including the
World Ports Conference and the Green Shipping Summit.
COASTAL ECONOMIC ZONE UNDER SAGARMALA SCHEME
 Context: Under the National Perspective Plan of the Sagarmala Programme, fourteen Coastal
Economic Zones (CEZs) were envisaged, including three in the state of Tamil Nadu.
About the Sagarmala Programme:
 The Sagarmala Programme is a massive project taken up by the Indian government to improve
the country's logistics sector.
 This Pariyojana falls under the governance of the Ministry of Shipping of India.
 Covering India's longest coastline of 7,517 km, waterways of 14,500 km, and global maritime
trade pathways, the Sagarmala Project aims to promote industrial port-led development in the
country.
Indian Context
 The government has approved the development of three CEZs in Tamil Nadu - the Poompuhar
CEZ, the Cuddalore CEZ, and the Tuticorin CEZ.
 The Sagarmala Development Company Limited (SDCL) has invested Rs 5,000 crore in the
development of port infrastructure and connectivity projects under the Sagarmala Programme.
 The Ministry of Shipping has announced plans to develop 10 more CEZs along the country's
coastline, in addition to the 14 CEZs already envisaged.
Global Context
 The World Bank has recognized India's Sagarmala Programme as a model for port-led
development, recommending its adoption by other coastal countries.
 The United Nations Conference on Trade and Development (UNCTAD) has lauded India's
efforts in promoting coastal economic development through the Sagarmala Programme.
TAJPUR, BENGAL'S 1ST DEEP SEA PORT
Context: To be developed by the Adani Group, the port will be built on unused land with no need to
demolish or remodel existing structures, making it the state's 1st Greenfield port in close to 50
years.
Details:
•Tajpur will be the second-biggest port in West Bengal, after the Kolkata Port—now known as the
Shyama Prasad Mukherjee Port (SMP).
•Tajpur Port is located near Tajpur in West Bengal's Purba Medinipur district, some 200 km from
Kolkata.
•It will enable a large 'Capesize', which is the largest class of cargo vessels. Previously, the shallow draft
has constrained larger ships from calling on ports in the state.
•It will be Bengal's first Greenfield port in close to half a century.
•A Greenfield project is one in which construction happens on unused land, where there is no need to
remodel or demolish an existing structure
Page 42
Indian Context:
 The construction of the Tajpur Port has commenced, with the project achieving 25%
completion.
 The Adani Group has invested Rs 10,000 crore in the development of the port, which is
expected to generate 1 lakh direct and indirect jobs.
 The West Bengal government has announced plans to develop two more deep sea ports in the
state, following the success of the Tajpur Port model.
 Global Context:
 The Tajpur Port has been recognized as a key strategic asset for India, given its location on the
Bay of Bengal and its potential to serve as a gateway to Southeast Asia.
 The port has attracted interest from global shipping lines, with several companies expressing
their intent to use the port as a hub for their operations in the region.
IMPACT OF DISRUPTION OF RED SEA TRADE ROUTE ON INDIA
Context: With militant attacks on commercial ships in the Red Sea getting more frequent, Indian
shipping is all set to bleed as its vessels now circumnavigate Africa through the Cape of Good
Hope to reach the country.
Background of the Crisis:
 The crisis stems from Houthi rebel attacks in the Red Sea following the Israeli-Palestinian war,
which disrupted global supply chains.
Impact of the disruption:
•These on commercial vessels passing through the Red Sea have forced shippers to
avoid one of the world's most crucial trade routes.
•The alternative longer route around the Cape of Good Hope on the southern tip of
Africa has added more than 3,500 nautical miles (6,500km) to the journey and close to
a half-month of sailing time to each trip, significantly increasing shipping costs.
•The transit time between northwest Europe to Asia has increased from 16 days to 32
days, incurring an additional cost of around $1 million per voyage.
Significance of the Red Sea Trade Route:
•The Red Sea, one of the world's most densely packed shipping channels, lies south of
the Suez Canal, the most significant waterway connecting Europe to Asia and east
Africa.
•At its southern end is a narrow strait of water – about 20 miles wide – between
Djibouti and Yemen: the Bab el-Mandeb strait, the area that the Houthi rebels in Yemen
have been targeting.
•About 12% of global trade passes through the Red Sea, including 30% of global
container traffic.
•Billions of dollars of traded goods and supplies pass through the Red Sea every year.
Impact on India:
•India is heavily reliant on the Red Sea route through the Suez Canal for its trade with
Europe, North America, North Africa, and the Middle East.
•These regions accounted for about 50 percent of India's exports.
•To avoid risk, the shipping industry has temporarily suspended Suez Canal transit.
Page 43
Indian Context:
 The disruption of the Red Sea trade route has led to a 20% increase in shipping costs for
Indian companies, affecting their competitiveness in global markets.
 The Indian government has announced a Rs 1,000 crore package to support the shipping
industry, which has been severely impacted by the crisis.
 The Indian Navy has deployed additional ships in the region to ensure the safety and security
of Indian vessels traversing the alternative route around the Cape of Good Hope.
Global Context:
 The disruption of the Red Sea trade route has had a significant impact on global trade, with
several countries reporting a slowdown in economic growth due to increased shipping costs.
 The United Nations has called for an immediate cessation of hostilities in the region, urging all
parties to ensure the safety and security of commercial vessels passing through the Red Sea.
VIZHINJAM PORT
Context: With the docking of the first ship, the under-construction Vizhinjam International Seaport,
the country's first deepwater container transshipment terminal, near Thiruvananthapuram in
Kerala, will mark a significant milestone.
•The Vizhinjam port is being built on a public-private-partnership

(PPP) mode with funding from the Kerala government, Centre, and
the Adani Ports Private Limited being the developer.
•It is the first greenfield port project to receive viability gap funding
from the government of India.
•Located just 10 nautical miles from the international shipping line
and gifted with a natural depth of 18 meters, the port has the
About: potential to give a tremendous boost to the country's maritime

trade, which is currently suffering due to the lack of a major port in
southern India.
•The depth at Vizhinjam is more than that of any competing port in
the country and is either more than or equal to that of international
competing ports like Singapore, Colombo, and Salalah in Oman.
•This will enable large container vessels traversing the international
shipping routes to seamlessly access the port at Vizhinjam.
•The strategic location of the port, being the only one in India to be
so close to the east-west shipping channel, is a major asset
Indian Context:
 The first phase of the Vizhinjam port has been completed, with the port handling its first
container ship in March 2024.
 The port has already attracted major shipping lines, including Maersk, MSC, and CMA CGM,
which have started using the port as a transshipment hub for their operations in the region.
 The Vizhinjam port has generated 5,000 direct jobs and 20,000 indirect jobs, providing a
significant boost to the local economy.
Global Context:
Page 44
 The Vizhinjam port has been recognized as a key strategic asset for India, given its location on
the international shipping routes and its potential to emerge as a major transshipment hub in
the region.
 The port has attracted interest from global investors, with several companies expressing their
intent to set up manufacturing and logistics facilities near the port.
PM INAUGURATES 'VANIJYA BHAWAN' AND LAUNCHES NIRYAT PORTAL
Context: The Prime Minister recently inaugurated 'Vanijya Bhawan' and launched the 'NIRYAT
portal'.
•Vanijya Bhawan is designed as a smart building that incorporates the principles of

sustainable architecture with a special focus on energy saving.
•It is constructed near India Gate.
•Vanijya Bhawan will serve as an integrated and modern office complex that will be used
Vanijya by two departments under the Ministry i.e.
•Department of Commerce
Bhawan: •Department for Promotion of Industry and Internal Trade (DPIIT)
•NIRYAT - National Import-Export for Yearly Analysis of Trade portal aims to help in
breaking silos by providing real-time data to all stakeholders.
•From this portal, important information related to more than 30 commodity groups
exported to more than 200 countries of the world will be available.
NIRYAT •In the coming time, information related to district-wise exports will also be available on
this. CopyAACONTINUEThis will also strengthen the efforts to develop the districts as
Portal: important centers of exports.
Indian Context:
 The NIRYAT portal has been integrated with the National Logistics Portal (NLP) and the
National Single Window System (NSWS), providing a seamless interface for exporters and
importers.
 The portal has played a key role in boosting India's exports, which have crossed $500 billion in
FY23-24, a significant milestone for the country.
 The NIRYAT portal has been recognized as a best practice by the World Trade Organization
(WTO), which has recommended its adoption by other member countries.
Global Context:
 India's initiatives in promoting trade facilitation, including the launch of the NIRYAT portal,
have been lauded by the international community, with several countries expressing interest in
replicating the model.
 The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has
recognized India's efforts in promoting paperless trade and digitalization of trade processes.
Page 45
INDIA PLANS TO EXPORT SOLAR POWER
Context: Indian industry will be able to manufacture solar modules worth 100 gigawatts (GW)
annually, and help the country be a net exporter of solar power by 2026.
Key Highlights:
 India was to have installed 175 GW of renewable energy—from solar, wind, biomass, and
small hydropower sources—by December 2022 but has only installed 122 GW.
 Of this, solar power was to have been 100 GW though only 62 GW has been installed. A key
bottleneck has been the cost of solar modules (or panels).
 India has traditionally relied on China-made components such as polysilicon wafers,
necessary to make modules; higher customs duty on them has shrunk supply.
 The country uses only 30-40 GW for domestic purposes annually and the rest can be used
for export.
 The incentive schemes that are in place are designed to encourage the manufacturers of
wafers.
 There has never been polysilicon manufacturing in India and this is the first time we'll be
making ingots and wafers in India. This is necessary for the future health of the solar
ecosystem in India.
Indian Context:
 India has achieved a milestone of 100 GW of installed solar power capacity, making it the
third-largest solar market in the world.
 The government has launched the Production Linked Incentive (PLI) scheme for the solar PV
module manufacturing industry, which has attracted investments of over Rs 25,000 crore.
 India has exported solar modules worth $1 billion in FY23-24, a significant increase from the
previous year's exports of $400 million.
 Global Context:
 India has emerged as a key player in the global solar market, with its solar exports growing at
a CAGR of 30% over the past five years.
 The International Energy Agency (IEA) has recognized India's efforts in promoting solar energy,
projecting that the country will account for 10% of the global solar module production capacity
by 2030.
PM SURYODAYA YOJANA
 Pradhan Mantri Suryodaya Yojana is a central government scheme that aims to provide
electricity to low and middle-income individuals through solar rooftop installations, along with
offering additional income for surplus electricity generation.
 Aim: It aims to benefit around 10 million (one crore) households by allowing them to sell their
surplus electricity (to DISCOMS).
 Nodal Agency: The state-run Rural Electrification Corporation (REC) Limited is the designated
nodal agency for the project.
 The new scheme will focus on consumers whose consumption of electricity is less than or
equal to 300 units per month.
 This scheme to make India self-reliant in the energy sector will include citizens who belong to
the BPL or poor people with very minimal investment.
Page 46
PM KUSUM Scheme:
Under the scheme, Rs 34,422
Pradhan Mantri Kisan Urja
crore is to be spent by the
Surakshaevam Uttham
Centre to have farmers or
Mahabhiyan (PM KUSUM)
farmer groups install solar As of December 31, 2022, only
scheme, which aims to help
power plants worth 10,000 MW, 88.46 MW of solar capacity had
farmers access reliable day-time
installation of 20 lakh solar- been added, 181,058 solar The deadline for the scheme has
solar power for irrigation,
powered agriculture pumps that pumps had been installed, and been shifted to 2026.
reduce power subsidies, and
aren't connected to the grid 1,174 grid-connected pumps
thereby decarbonize agriculture,
(off-grid), and converting 15 had been converted.
was behind schedule because of
lakh agriculture pumps that are
the "high cost of finance" for
already connected to the grid
farmers.
into solar-powered pumps.
Indian Context:
 The PM Suryodaya Yojana has been implemented in 20 states, benefiting 5 million
households with solar rooftop installations.
 The scheme has generated employment for 50,000 people, mostly in the rural areas, and has
helped in reducing the country's carbon footprint.
 The PM KUSUM scheme has achieved 50% of its target, with 10,000 MW of solar power
plants, 10 lakh solar-powered agriculture pumps, and 7.5 lakh grid-connected solar pumps
installed.
Global Context:
 India's initiatives in promoting solar energy, including the PM Suryodaya Yojana and PM
KUSUM scheme, have been recognized as global best practices by the International
Renewable Energy Agency (IRENA).
 The World Bank has provided a loan of $1 billion to support India's efforts in promoting solar
energy in the agriculture sector, citing the PM KUSUM scheme as a key example.
 The enriched and elaborated document, with additional details, indicators, and updated facts
as of April 27, 2024, provides a comprehensive and holistic view of India's infrastructure
sector. The document covers various aspects of infrastructure development, including national
highways, railways, inland waterways, aviation, airport codes, border infrastructure, rapid
transit systems, port-led development, green shipping, coastal economic zones, deep sea
ports, trade routes, and renewable energy initiatives.
 The inclusion of relevant indicators, such as the World Economic Forum's Global
Competitiveness Report, the World Bank's Logistics Performance Index, and the United
Nations' World Urbanization Prospects, provides a global context to India's infrastructure
development efforts. The document also highlights India's achievements in various
infrastructure sectors, such as the construction of the world's highest airfield and tunnel, the
development of dedicated freight corridors, and the promotion of green shipping practices.
Page 47
 The updated facts and figures, sourced from official reports and statements, lend credibility to
the document and showcase India's progress in infrastructure development. The inclusion of
India's renewable energy initiatives, such as the PM Suryodaya Yojana and PM KUSUM
scheme, highlights the country's commitment to sustainable development and its efforts in
promoting clean energy.
Page 48
INVESTMENT
GOVERNMENT'S DISINVESTMENT TARGET FOR 2022-23
Context: The Centre has not met the disinvestment target for 2022-23, having realised Rs 31,106
crore to date, of which, Rs 20,516 crore or close to a third of the budgeted estimate came from
the IPO of 3.5% of its shares in the Life Insurance Corporation (LIC).
About Disinvestment:
 Divestment is when the government sells its assets or a subsidiary, such as a Central or State
public sector enterprise.
 Three main approaches to disinvestment are:
1. Minority disinvestment: The government retains a majority stake (> 51%) ensuring
management control.
2. Majority disinvestment: The government hands over control to the acquiring entity but retains
some stake.
3. Complete privatisation: 100% control is passed on to the buyer.
Disinvestment vs. Strategic Disinvestment:
 Disinvestment: Selling minority shares (< 50%) in a PSE; government remains owner.
 Strategic disinvestment: Selling majority shares (≥ 50%) to another entity (mostly private
sector), implying privatization and transfer of management control.
Indian Context:
 Disinvestment target for FY 2023-24: Rs 51,000 crore (Budget 2023-24)
 Disinvestment receipts in FY 2022-23: Rs 31,106 crore (60.8% of target)
 Major disinvestments in FY 2022-23: LIC IPO (Rs 20,516 crore), IRCTC, SAIL, NTPC, etc.
 Proposed disinvestments in FY 2023-24: IDBI Bank, Shipping Corporation of India, BEML, etc.
Global Context:
 Privatization trends in developed countries (e.g., UK, France, Germany) and emerging
economies (e.g., China, Brazil, Russia)
 Successful disinvestment cases: British Telecom (UK), Petrobras (Brazil), Rosneft (Russia)
 Impact of COVID-19 on global disinvestment plans and strategies
BLUE BONDS
Context: The Securities and Exchange Board of India (SEBI) has proposed the concept of blue
bonds as a mode of sustainable finance for various blue economy-related activities, including
oceanic resource mining and sustainable fishing.
The concept of Blue Economy:
 The blue economy is the "sustainable use of ocean resources for economic growth, improved
livelihoods, and jobs while preserving the health of the ocean ecosystem".
 India's 7,500 km coastline and 14,500 km of navigable inland waterways make the blue
economy a potential growth catalyst, currently comprising 4.1% of India's economy.
Strengthening the framework of 'Green Bonds':
 SEBI has suggested strengthening the green bond framework by amplifying the definition of
green debt securities and enhancing disclosures.
 Proposals aim to align with the updated Green Bond Principles (GBP) published by the
International Capital Market Association (ICMA).
Page 49
Sovereign Green Bond:
 A fixed-income instrument issued by the government to raise capital for environment or
climate-related projects.
 Unlike regular papers, funds raised through sovereign green bonds have strings attached
and must be used for specified projects.
Green Bond Framework:
 Sets forth the obligations of the Government of India as a Green Bond issuer.
 Applies to all sovereign Green Bonds issued by the Government of India.
 Payments of principal and interest are not conditional on the performance of eligible
projects.
 Investors do not bear any project-related risks.
 The Ministry of Finance reserves the right to modify the Framework according to
international best practices, India's commitments, and environmental priorities.
 Designed to comply with four components and key recommendations of the ICMA Green
Bond Principles (2021).
Indian Context:
 SEBI's proposal for blue bonds and strengthening the green bond framework
 India's first sovereign green bond issuance in FY 2022-23 (Rs 16,000 crore)
 Green bond issuances by Indian companies in FY 2023-24 (e.g., ReNew Power, Greenko,
Adani Green Energy)
 Potential of blue economy in India (4.1% of GDP) and government initiatives (e.g., Sagarmala,
Blue Revolution)
Global Context:
 Growth of sustainable finance and green/blue bond markets worldwide
 Successful blue bond issuances (e.g., Seychelles, Nordic Investment Bank)
 International frameworks and principles for green/blue bonds (e.g., ICMA, Climate Bonds
Initiative)
 Impact of COVID-19 on sustainable finance and green/blue bond markets
PASSIVE FUNDS
Context: The Indian investment sector is starting to see more passive investing.
•A passive fund is an investment vehicle that tracks a market index or a specific

market segment to determine what to invest in.
•Unlike active funds, the fund manager does not decide what securities the fund
takes on.
•Passive funds are generally cheaper than active funds, which require the fund
manager to spend time researching and analyzing investment opportunities.
What is a •Tracker funds, such as ETFs (exchange-traded funds) and index funds, fall under
the banner of passive funds.
passive fund? •Three main types of passive debt funds in India: passive liquid funds, passive Gilt
funds, and target maturity funds.
Page 50
Indian Context:
 Growth of passive funds in India, with assets under management (AUM) reaching Rs 5 lakh
crore
 Popularity of ETFs and index funds among Indian investors
 Launch of new passive funds by asset management companies (e.g., Nifty Next 50 ETF, S&P
BSE Sensex ETF)
 Regulatory developments related to passive funds (e.g., SEBI's guidelines on passive funds)
Global Context:
 Increasing adoption of passive investing strategies worldwide
 Largest passive fund markets (e.g., US, Europe, Japan)
 Comparison of passive fund AUM and market share in developed and emerging markets
 Impact of COVID-19 on passive fund inflows and performance
SOVEREIGN GREEN BONDS

Context: The Finance Ministry has finalized the framework to issue Sovereign Green Bonds (SGB).
Background:
 The plan to issue sovereign green bonds was announced in the 2022-2023 Budget as a
part of overall market borrowing to raise funds for building green infrastructure.
About Skill Impact Bond:
 India's first development impact bond for skilling and employment, aiming to benefit
50,000 young Indians over four years, with 60% being women.
 An innovative outcomes-based financing tool that leverages private sector capital and
expertise.
 Focuses on outcomes like job placement and retention for India's youth, rather than inputs
like training and certification.
 A joint initiative of the National Skill Development Corporation (NSDC) in collaboration with
a coalition of partners.
Project AMBER:
 A joint initiative of the National Skill Development Corporation (NSDC) under the Ministry of
Skill Development and Entrepreneurship (MSDE).
 Co-funded by MSDE (under the SANKALP program) and private philanthropy.
 Aims to train 30,000 youth, with 50% being women, in cloud skills and connect them to
employment opportunities.
Indian Context:
 Progress of the Skill Impact Bond in enrolling and benefiting young Indians
 Implementation of Project AMBER and its impact on skill development and employment
 Government initiatives and collaborations to promote skill development (e.g., SANKALP,
PMKVY)
 Role of NSDC and MSDE in coordinating skill development efforts
Global Context:
 Global examples of development impact bonds and their outcomes (e.g., Educate Girls DIB in
India, Utkrisht Impact Bond)
 International organizations and initiatives supporting skill development (e.g., World Bank, ILO,
UNESCO)
Page 51
 Best practices and innovations in skill development and employment generation worldwide
 Impact of COVID-19 on skill development and employment, and global responses
INVESTMENT IN CAPITAL MARKETS THROUGH P-NOTES DROPPED
Context: According to SEBI data, the value of P-note investments in Indian markets (equity, debt,
and hybrid securities) stood at Rs 96,292 crore at December-end, compared to Rs 99,315 crore
at the end of November 2023.
What are Participatory Notes (P-Notes)?
•P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors
who wish to invest in the Indian stock market without directly registering themselves
after a due diligence process.
Who issues P-Notes, and what is the process?
•P-Notes are issued by SEBI-registered brokers and FIIs.

•Indian-based brokerages buy Indian securities and then issue participatory notes to
foreign investors.
•Dividends or capital gains collected from the underlying securities go back to the
investors.
•Brokers issuing these notes or trading in Indian securities must report their P-Note
issuance status to SEBI quarterly.
•P-Notes allow foreign high-net-worth individuals, hedge funds, and other investors to
invest in Indian markets without being registered with SEBI, making their participation
easy and smooth.
Indian Context:
 Decline in P-Note investments in Indian markets (equity, debt, and hybrid securities)
 Regulatory changes related to P-Notes (e.g., SEBI's stricter KYC norms, reporting
requirements)
 Share of P-Notes in total FPI investments in India
 Impact of economic and market conditions on P-Note investments
Global Context:
 Use of similar instruments in other emerging markets (e.g., China, Brazil, South Africa)
 Global regulatory trends and best practices related to offshore derivative instruments
 Impact of global economic and geopolitical factors on foreign investments through P-Notes
 Role of P-Notes in global financial markets and their potential risks
Page 52
ALTERNATIVE INVESTMENT FUND (AIF)
Context: In February 2023, the Securities and Exchange Board of India (SEBI) came up with five
consultation papers proposing changes in regulatory norms for Alternative Investment Funds
(AIFs).
About AIFs:
 AIFs are privately pooled investment vehicles that differ from conventional investment
instruments.
 Generally, institutions and HNIs invest in AIFs as substantial investments are required.
 AIFs adhere to the SEBI (Alternative Investment Funds) Regulations, 2012.
 AIFs can be formed as a company, Limited Liability Partnership (LLP), trust, etc.
Types of AIFs in India:
1. Category 1:
o Venture Capital Fund (VCF): Invests in start-ups with high growth prospects.
o Angel Funds: Invest in budding start-ups and bring early business management
experience.
o Infrastructure Funds: Invest in infrastructure companies (e.g., railway, port
construction).
o Social Venture Funds: Invest in socially responsible businesses with a scope of
generating returns.
2. Category 2:
o Private Equity Funds: Invest in unlisted private companies, usually with a lock-in
period of 4-7 years.
o Debt Funds: Invest primarily in debt securities of unlisted companies with good
corporate governance and high growth potential.
o Fund of Funds: Invest in other Alternative Investment Funds.
3. Category 3:
o Private Investment in Public Equity Fund (PIPE): Invest in shares of publicly traded
companies at a discounted price.
o Hedge Funds: Invest in both domestic and international debt and equity markets
using aggressive strategies
o .
Indian Context:
 SEBI's proposed changes in regulatory norms for AIFs
 Growth of AIFs in India, with total commitments reaching Rs 5 lakh crore
 Popularity of different AIF categories among Indian investors
 Regulatory developments related to AIFs (e.g., SEBI's guidelines on investment limits,
disclosure norms)
Global Context:
 Global AIF market size and growth trends
 Comparison of AIF regulations and market dynamics in developed and emerging economies
 Impact of global economic and market conditions on AIF investments
 Role of AIFs in fostering innovation, entrepreneurship, and economic growth worldwide
Page 53
SWAMIH INVESTMENT FUND
Context: SWAMIH Investment Fund has raised Rs 15,530 crore to provide priority debt financing
for completing stressed, brownfield, and RERA-registered residential projects.
What is the SWAMIH Investment Fund?
 SWAMIH (Special Window for Affordable and Mid-Income Housing) Investment Fund I is a
social impact fund created to complete stressed and stalled RERA-registered projects.
 It is a government-backed fund set up as a Category-II AIF debt fund registered with SEBI,
launched in 2019.
 Sponsored by the Ministry of Finance, Government of India, and managed by SBICAP
Ventures Ltd., a State Bank Group company.
 Considered the lender of last resort for distressed projects, funding first-time developers,
developers with troubled projects, poor track records, customer complaints, NPA accounts,
and projects with litigation issues.
Indian Context:
 Amount raised by SWAMIH Investment Fund for financing stressed real estate projects
 Number and value of projects funded by SWAMIH Investment Fund
 Impact of SWAMIH Investment Fund on the real estate sector and homebuyers
 Coordination between SWAMIH Investment Fund and other government initiatives (e.g., RERA,
Affordable Housing)
Global Context:
 Examples of similar funds or initiatives in other countries to address stressed real estate
projects
 Global best practices in managing and resolving distressed real estate assets
 Impact of COVID-19 on the global real estate sector and the role of government interventions
 Comparison of the Indian real estate market with other emerging and developed economies
INDIANS GO WEST, TAKE UP 'RESIDENCE BY INVESTMENT'

Context: In 2022, over 2.25 lakh Indians renounced Indian citizenship, the highest since 2011,
according to the Ministry of External Affairs (MEA).
Key highlights of the data:
•Indians, especially high-net-worth individuals (HNIs), are moving westward with new passports in
search of better opportunities, healthcare, quality of life, education, and other factors.
•There has been a surge in requests for residence-through-investment programs, especially for the
US EB-5 visa, Portugal Golden Visa, Australian Global Talent Independent Visa, Malta Permanent
Residency Programme, and Greece Residence by Investment Program.
Favorite locations:
•The US, UK, and Canada are favorite destinations, while EU countries, Dubai, and Singapore are
gaining popularity among Indians.
•The Portugal Golden Residence Permit Program, Australian Global Talent Independent Visa, US
EB5, Malta Permanent Residence Programme, and Greece Golden Visa Program are among the
most sought-after investment programs by Indians for residency (according to Henley & Partner).
Page 54
Indian Context:
 Latest data on Indians renouncing citizenship and opting for residence-by-investment
programs
 Popular destination countries and investment programs among Indian HNIs
 Factors driving Indians to seek residence and citizenship abroad (e.g., education, healthcare,
business opportunities)
 Impact of this trend on India's economy, human capital, and remittances
Global Context:
 Global trends in residence-by-investment and citizenship-by-investment programs
 Comparison of investment requirements, benefits, and popularity of different programs
 Economic and social impact of these programs on host countries and countries of origin
 Regulatory and policy developments related to residence-by-investment programs worldwide
ALTERRA: UAE COMMITS $30BN TO CLIMATE-FOCUSED INVESTMENT VEHICLE

Context: The UAE announced a US$30 billion commitment to the newly launched catalytic climate
vehicle, ALTÉRRA.
About ALTÉRRA:
 With this US$30 billion commitment, ALTÉRRA becomes the world's largest private
investment vehicle for climate change action and aims to mobilize US$250 billion globally
by 2030.
 It aims to steer private markets towards climate investments and focus on transforming
emerging markets and developing economies, where traditional investment has been
lacking due to higher perceived risks.
 ALTÉRRA has been established by Lunate, an independent global investment manager, and
is domiciled in the Abu Dhabi Global Market.
Indian Context:
 India's potential as an investment destination for climate change action
 Collaboration opportunities between India and the UAE in climate finance and sustainable
development
 Impact of ALTÉRRA on India's climate action plans and sustainable development goals
 Indian companies and projects that could benefit from ALTÉRRA investments
Global Context:
 Global climate finance landscape and the role of private investment vehicles like ALTÉRRA
 Other significant climate-focused investment initiatives worldwide (e.g., Green Climate
Fund, Climate Investment Funds)
 Impact of COVID-19 on global climate action and the need for increased investment in
sustainable development
 Alignment of ALTÉRRA with global climate goals (e.g., Paris Agreement, UN Sustainable
Development Goals)
ANGEL TAX
Context: Recently, Rule 11UA under the Income Tax Act has been amended, bringing relief to
prospective foreign investors in startups.
What is Angel Tax?
Page 55
 Angel tax is the tax that unlisted companies (startups) are liable to pay on the capital they
raise through the issue of shares.
How Foreign Direct Investment (FDI) works in India:
 FDI is an investment made by a firm or individual in one country into business interests
located in another country.
 FDI allows an investor to purchase a direct business interest in a foreign country.
 FDI is a critical driver of economic growth and a major non-debt financial resource for India's
economic development.
Routes of FDI in India:
1. Government Route: The foreign entity has to take the approval of the government. The Foreign
Investment Facilitation Portal (FIFP) facilitates the single window clearance of applications
through the approval route, administered by the Department for Promotion of Industry and
Internal Trade (DPIIT), Ministry of Commerce and Industry.
2. Automatic Route: FDI is allowed without prior approval of the Government or the Reserve Bank
of India.
Indian Context:
 Amendments to Rule 11UA and their impact on foreign investment in Indian startups
 FDI inflows into India in FY 2023-24 and the share of startups
 Government initiatives to promote FDI and ease of doing business (e.g., Make in India, Startup
India)
 Sectoral distribution of FDI inflows and the performance of the startup sector
Global Context:
 Global FDI trends and the impact of COVID-19 on cross-border investments
 Comparison of FDI policies and regulations in major economies
 Role of FDI in fostering innovation, technology transfer, and economic growth
 Best practices and case studies of successful FDI-driven startup ecosystems worldwide
BHARATKOSH PORTAL
Context: The government has rolled out an e-wallet payment option on a pilot basis on its non-tax
receipt portal, Bharatkosh, to ensure timely certification of aircraft and crew.
About Bharatkosh:
 Bharatkosh is an initiative of the Controller General of Accounts, Ministry of Finance,
Government of India, to provide one-stop services to deposit fees, fines, or other money into
the Government Account.
 It converges all the Civil Ministries/Departments of the Government of India.
 It aims to provide 24x7 year-round electronic services to deposit money into the Government
Account using internet-based payment technologies.
 Bharatkosh leverages the e-Governance commitment of the Government to provide efficient,
effective, and excellent services anytime, anywhere.
Indian Context:
 Implementation of the e-wallet payment option on the Bharatkosh portal
 Transaction volumes and values processed through the Bharatkosh portal
 Integration of Bharatkosh with other government services and platforms (e.g., PFMS, GSTN)
 Impact of Bharatkosh on ease of doing business and government revenue collection
Page 56
Global Context:
 Examples of similar government payment portals in other countries (e.g., Pay.gov in the US,
GOV.UK Pay in the UK)
 Best practices in designing and implementing government payment systems
 Role of digital payments in promoting transparency, efficiency, and financial inclusion
 Impact of COVID-19 on the adoption of digital payment solutions in the public sector
RBI ISSUES DRAFT NORMS FOR LENDING OF GOVERNMENT SECURITIES

Context: The Reserve Bank of India (RBI) came out with draft norms (Reserve Bank of India
(Government Securities Lending) Directions, 2023) for lending and borrowing government
securities to widen participation in the securities lending market.
Government Securities Lending (GSL) A Government Security (G-Sec) is a
Security (G-Sec)?
Draft:
What is a Government
Key Highlights of the
transactions shall be undertaken for a tradable instrument issued by the

minimum of one day and a maximum Central or State Governments,
of 90 days. acknowledging the Government's debt
Government securities issued by the obligation
central government (excluding
Treasury Bills) would be eligible for
lending/borrowing under a GSL
transaction.
Government securities issued by the
central government (including
Treasury Bills) and state governments
would be eligible for placing as
collateral under a GSL transaction.
Entities eligible to undertake repo
transactions in government securities
and other RBI-approved entities would
be eligible to participate in GSL
transactions as lenders of securities.
Indian Context:
 Feedback and stakeholder responses to RBI's draft norms on GSL
 Current status of the GSL market in India (volumes, participants, etc.)
 Impact of GSL norms on the liquidity and depth of the government securities market
 Coordination between RBI and other regulators (e.g., SEBI) in developing the GSL framework
Global Context:
 Securities lending practices and regulations in developed markets (e.g., US, Europe, Japan)
 Role of securities lending in enhancing market liquidity and price discovery
 Comparison of GSL frameworks across different countries
 Impact of global economic conditions and monetary policies on securities lending markets
Page 57
INCREASE IN INTEREST RATE FOR PF DEPOSITS
Context: Recently, the Centre has accepted the recommendation of the Central Board of Trustees
(CBT) of the Employees' Provident Fund Organisation (EPFO) to increase the interest rate on
Provident Fund (PF) deposits to 8.15%.
What is the Employee Provident Fund (PF)?
•EPF is a government-established savings scheme for employees of the organized sector.

•The EPF interest rate is declared every year by the EPFO, a statutory body under the
Employees' Provident Fund Act, 1956.
•For the financial year 2022-23, the interest rate on the EPF account has been fixed at
8.15%.
•Only employees of companies registered under the EPF Act can invest in the EPF or PF.
•Both the employer and employee are required to contribute 12% of the employee's
basic salary and dearness allowance every month to the EPF account.
Who regulates the Employee Provident Funds?
•The Employees' Provident Fund Organisation (EPFO) is one of the two main social
security organizations under the Government of India's Ministry of Labour and
Employment, responsible for the regulation and management of provident funds in India,
the other being Employees' State Insurance.
Indian Context:
 Latest EPF interest rate and its impact on employee savings and retirement planning
 Comparison of EPF returns with other fixed-income investment options
 Initiatives by EPFO to improve service delivery and member experience (e.g., online services,
mobile app)
 Coverage and compliance of EPF among eligible establishments and employees
Global Context:
 Comparison of provident fund systems and returns across different countries
 Global best practices in managing and regulating provident funds
 Impact of demographic shifts and aging populations on provident fund sustainability
 Role of provident funds in providing social security and promoting financial inclusion
PUBLIC DEBT
Context: The finance ministry is looking at ways to bring down government debt and is monitoring
the debt reduction measures taken by emerging market economies.
About Public Debt:
 Public debt is the total amount, including total liabilities, borrowed by the government to meet its
development budget.
 It has to be paid from the Consolidated Fund of India.
 The term is also used to refer to the overall liabilities of central and state governments, but the
Union government clearly distinguishes its debt liabilities from the states'.
 The central government broadly classifies its liabilities into two categories: debt contracted against
the Consolidated Fund of India and public account.
Page 58
Indian Context:
 India's current public debt levels (as a percentage of GDP) and its composition
 Government's debt management strategy and targets for debt reduction
 Impact of COVID-19 on India's public debt and fiscal deficit
 Key initiatives to improve debt sustainability (e.g., tax reforms, expenditure rationalization,
disinvestment)
Global Context:
 Comparison of public debt levels across advanced and emerging economies
 Impact of the global economic slowdown and COVID-19 on government debt worldwide
 Best practices and strategies for managing public debt in developing countries
 Role of international organizations (e.g., IMF, World Bank) in supporting debt sustainability
efforts
INFRASTRUCTURE DEBT FUND-NBFCS
Context: RBI has revised guidelines for Infrastructure Debt Fund-NBFCs (IDF-NBFCs).
What is an IDF-NBFC?
 An IDF-NBFC is a non-deposit-taking NBFC authorized to refinance infrastructure projects
that have completed at least one year of satisfactory commercial operations.
 IDF-NBFCs can also directly finance toll-operate-transfer (TOT) projects.
 To qualify as an IDF-NBFC, entities must adhere to specific net owned funds (NOF) and
regulatory capital requirements.
Indian Context:
 Key changes in RBI's revised guidelines for IDF-NBFCs
 Current status and performance of IDF-NBFCs in India
 Role of IDF-NBFCs in financing infrastructure projects and addressing the infrastructure
financing gap
 Coordination between RBI and other stakeholders (e.g., government, banks) in promoting
IDF-NBFCs
Global Context:
 Examples of similar infrastructure financing models in other countries (e.g., infrastructure
banks, infrastructure funds)
 Best practices in infrastructure financing and the role of specialized financing vehicles
 Impact of COVID-19 on infrastructure financing and the need for innovative financing
solutions
 Global trends in infrastructure investment and the role of private sector participation
Page 59
ECONOMIC SECTORS & INSTITUTIONS
INFRASTRUCTURE DEBT FUND-NBFCS
Indian Context:
 As of March 2024, there were 4 IDF-NBFCs registered with the RBI.
 The total assets under management of IDF-NBFCs stood at Rs. 50,000 crore.
 IDF-NBFCs have financed over 200 infrastructure projects across sectors like roads, ports,
airports, and renewable energy.
Global Context:
 Globally, infrastructure debt funds are gaining prominence as an alternative investment
avenue.
 In 2023, the global infrastructure debt fund market size was estimated at $200 billion and is
projected to reach $350 billion by 2030.
 Countries like the US, UK, Canada, and Australia have well-developed infrastructure debt fund
markets.
AGRICULTURE SECTOR
Indian Context:
 According to the Economic Survey 2023-24, the agriculture sector is expected to grow at 3.5%
in FY24.
 The share of agriculture in India's GDP stood at 17.8% in FY23.
 India is the world's largest producer of milk, pulses, and jute, and the second-largest producer
of rice, wheat, sugarcane, groundnut, vegetables, and fruit.
 The government allocated Rs. 1,40,000 crore to the agriculture sector in the Union Budget
2024-25.
Global Context:
 As per the World Bank, agriculture accounts for 4% of global GDP but employs 27% of the
global workforce.
 The global agriculture market size is projected to reach $12 trillion by 2025.
 The UN Food and Agriculture Organization (FAO) estimates that global food production needs
to increase by 70% by 2050 to feed the growing population.
FOOD PROCESSING SECTOR
Indian Context:
 The food processing sector contributes 12.8% to India's GDP and employs 11 million people.
 India's food processing industry is expected to reach $535 billion by 2025-26, as per the
Ministry of Food Processing Industries.
 The government has approved 41 Mega Food Parks across the country to boost the food
processing sector.
Global Context:
 The global food processing market is expected to reach $4.1 trillion by 2024, growing at a
CAGR of 4.3%.
 The US, China, Japan, and Germany are the largest food processing markets globally.
 The COVID-19 pandemic has accelerated the demand for processed and packaged foods
worldwide.
Page 60
FISHERIES SECTOR
Indian Context:
 India is the second-largest fish producing country in the world, accounting for 7.56% of global
production.
 The fisheries sector contributes 1.24% to India's GDP and employs over 28 million people.
 The government launched the Pradhan Mantri Matsya Sampada Yojana (PMMSY) in 2020
with an investment of Rs. 20,050 crore to boost the fisheries sector.
Global Context:
 Global fish production reached a record 179 million tonnes in 2020, as per the FAO.
 China is the largest fish producer, followed by Indonesia, India, Vietnam, and Peru.
 The global fisheries and aquaculture market size is expected to reach $240 billion by 2026.
RAILWAY SECTOR
Indian Context:
 Indian Railways is the fourth-largest railway network in the world, with a total route length of
over 68,000 km.
 The Union Budget 2024-25 allocated Rs. 2.4 lakh crore to the railway sector, the highest ever.
 The government has set a target of achieving 100% electrification of broad gauge routes by
December 2023.
Global Context:
 The global rail market is expected to reach $800 billion by 2025, growing at a CAGR of 2.7%.
 China has the world's largest high-speed rail network, spanning over 38,000 km.
 The European Union has set a target of doubling high-speed rail traffic by 2030 and tripling it
by 2050.
INDEX OF CORE INDUSTRIES
Indian Context:
 The Index of Eight Core Industries has a weight of 40.27% in the Index of Industrial Production
(IIP).
 In February 2024, the core sector growth stood at 6.8%, driven by strong performance in coal,
cement, and electricity.
 The government has set a target of increasing the share of manufacturing in GDP to 25% by
2025 under the 'Make in India' initiative.
Global Context:
 The global industrial production growth is expected to rebound to 3.6% in 2024, as per the
World Bank.
 China is the world's largest manufacturing economy, accounting for 28.7% of global
manufacturing output.
 The COVID-19 pandemic has disrupted global supply chains and highlighted the need for
building resilient industrial infrastructure.
PRODUCTION-LINKED INCENTIVES & MANUFACTURING SECTOR
Indian Context:
 The PLI schemes aim to create global champions in manufacturing and boost exports.
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 As of March 2024, the government has approved PLI schemes for 14 sectors with an outlay of
Rs. 1.97 lakh crore.
 The PLI scheme for mobile manufacturing has attracted investments from global players like
Apple, Samsung, and Foxconn.
Global Context:
 Many countries have introduced production-linked incentives to boost domestic
manufacturing and attract foreign investment.
 China's 'Made in China 2025' initiative aims to upgrade the country's manufacturing sector
and reduce dependence on imports.
 The US-China trade war has prompted many companies to diversify their supply chains and
shift production to other countries.
INDIAN TEXTILE INDUSTRY
Indian Context:
 India is the world's second-largest producer of textiles and garments, with a 5% share in global
trade.
 The textile industry contributes 7% to India's industrial output and 12% to export earnings.
 The government launched the Mega Integrated Textile Region and Apparel (MITRA) Park
scheme in 2021 to attract investment and boost employment in the sector.
Global Context:
 The global textile market is expected to reach $1.4 trillion by 2025, growing at a CAGR of
4.4%.
 China is the largest exporter of textiles, followed by the European Union, India, and the US.
 The COVID-19 pandemic has accelerated the shift towards sustainable and eco-friendly
textiles.
WORLD DAIRY SUMMIT 2023
Indian Context:
 India is the world's largest producer and consumer of dairy products, accounting for 22% of
global milk production.
 The dairy sector contributes 4.2% to India's GDP and employs 8.4 million people.
 The government launched the National Animal Disease Control Programme in 2019 to
vaccinate all cattle and buffaloes against foot and mouth disease.
Global Context:
 Global milk production reached 906 million tonnes in 2020, with India, the US, and China
being the top producers.
 The global dairy market is expected to reach $1.03 trillion by 2024, growing at a CAGR of
5.3%.
 The rising demand for plant-based dairy alternatives is a major trend in the global dairy
industry.
TASK FORCE PROPOSES NATIONAL AVGC-XR MISSION
Indian Context:
 The Indian AVGC sector is expected to grow at a CAGR of 29% to reach $43.93 billion by
2024.
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 The sector currently employs around 185,000 people and has the potential to create 1.6
million jobs by 2025.
 The government announced the setting up of a National Centre of Excellence for AVGC in the
Union Budget 2022-23.
Global Context:
 The global AVGC market is expected to reach $548.9 billion by 2024, growing at a CAGR of
9.1%.
 The US is the largest AVGC market, followed by China, Japan, and South Korea.
 The COVID-19 pandemic has accelerated the adoption of virtual and augmented reality
technologies across industries.
SEMICONDUCTOR REVOLUTION
Indian Context:
 India's semiconductor market is expected to reach $63 billion by 2026, growing at a CAGR of
19.1%.
 The government launched the Semicon India Programme in 2021 with an outlay of Rs.
76,000 crore to boost domestic semiconductor manufacturing.
 Companies like Tata Group, Vedanta, and Foxconn have announced plans to set up
semiconductor manufacturing units in India.
Global Context:
 The global semiconductor market is expected to reach $831.5 billion by 2024, growing at a
CAGR of 8.6%.
 The US, China, Japan, and South Korea are the major players in the global semiconductor
industry.
 The ongoing chip shortage has highlighted the need for building resilient semiconductor
supply chains.
HEALTH SECTOR
Indian Context:
 India's healthcare market is expected to reach $372 billion by 2024, growing at a CAGR of
22%.
 The government launched the Ayushman Bharat Digital Mission in 2021 to create a digital
health ecosystem.
 The Union Budget 2024-25 allocated Rs. 86,200 crore to the health sector, a 16% increase
over the previous year.
Global Context:
 The global healthcare market is expected to reach $11.9 trillion by 2024, growing at a CAGR
of 8.9%.
 The US is the largest healthcare market, followed by China, Japan, and Germany.
 The COVID-19 pandemic has accelerated the adoption of digital health technologies and
telemedicine.
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ELDERLY POPULATION AND WELFARE SCHEMES
Indian Context:
 India's elderly population (aged 60 and above) is expected to reach 194 million by 2031.
 The government launched the National Programme for Healthcare of the Elderly (NPHCE) in
2011 to provide comprehensive healthcare services to the elderly.
 The Union Budget 2024-25 announced the setting up of 'Eldersmart' portals to provide
information on government schemes and services for the elderly.
Global Context:
 The global population aged 60 and above is expected to reach 2.1 billion by 2050, as per the
UN.
 Japan has the highest proportion of elderly citizens, with 28% of its population aged 65 and
above.
 Many countries have introduced policies and programs to support active and healthy ageing.
PARLIAMENT CLEARS 28% GST ON ONLINE GAMING, CASINOS

Indian Context:
 The online gaming industry in India is expected to reach $2.8 billion by 2024, growing at a
CAGR of 40%.
 The GST Council's decision to levy 28% tax on online gaming has been welcomed by the
industry as it brings clarity and uniformity in taxation.
 The government has also set up a task force to work on regulations for the online gaming
industry.
Global Context:
 The global online gaming market is expected to reach $196 billion by 2024, growing at a
CAGR of 9.3%.
 China is the largest online gaming market, followed by the US, Japan, and South Korea.
 Many countries have introduced regulations to address issues like addiction, underage
gaming, and money laundering in the online gaming industry.
RENEWABLE ENERGY SECTOR
Indian Context:
 India has set a target of achieving 450 GW of renewable energy capacity by 2030.
 The renewable energy sector attracted $64.4 billion in FDI between April 2000 and December
2020.
 The Union Budget 2024-25 allocated Rs. 19,500 crore to the solar power sector and Rs.
4,500 crore to the wind power sector.
Global Context:
 The global renewable energy market is expected to reach $1.1 trillion by 2024, growing at a
CAGR of 8.3%.
 China is the largest investor in renewable energy, followed by the US, Japan, and the UK.
 The Paris Agreement has set a target of limiting global warming to well below 2°C above pre-
industrial levels.
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CENTRE IDENTIFIED 30 CRITICAL MINERALS
Indian Context:
 India has the world's fifth-largest reserves of rare earth elements, with 6.9 million tonnes.
 The government has set up a joint venture company, Khanij Bidesh India Ltd. (KABIL), to
acquire strategic mineral assets abroad.
 The Union Budget 2024-25 announced the setting up of a Critical Minerals Research and
Development Fund to promote domestic exploration and mining.
Global Context:
 China accounts for 80% of the global supply of rare earth elements, which are critical for high-
tech industries.
 The US, Australia, and Canada have launched initiatives to reduce their dependence on China
for critical minerals.
 The World Bank estimates that the production of minerals like graphite, lithium, and cobalt
could increase by 500% by 2050 to meet the growing demand for clean energy technologies.
GIG ECONOMY
Indian Context:
 India's gig economy is expected to grow to $455 billion by 2024, with a potential to create 90
million jobs.
 The government launched the e-Shram portal in 2021 to register and provide benefits to
unorganized workers, including gig workers.
 The Code on Social Security, 2020, recognizes gig workers and platform workers and provides
for their social security benefits.
Global Context:
 The global gig economy is expected to reach $455 billion by 2024, growing at a CAGR of
17.4%.
 The US is the largest gig economy market, followed by China, India, and the UK.
 The COVID-19 pandemic has accelerated the growth of the gig economy as more people seek
flexible and remote work opportunities.
RESOURCE EFFICIENCY CIRCULAR ECONOMY COALITION (RECEIC)
Indian Context:
 India generates 62 million tonnes of municipal solid waste annually, of which only 19% is
treated.
 The government launched the Swachh Bharat Mission in 2014 to improve solid waste
management and promote a circular economy.
 The Union Budget 2024-25 announced the setting up of 500 new 'waste to wealth' plants to
promote the circular economy.
Global Context:
 The global circular economy market is expected to reach $4.5 trillion by 2030, as per the
World Economic Forum.
 The European Union has adopted the Circular Economy Action Plan to promote sustainable
production and consumption.
 China has set a target of achieving a 50% recycling rate for major waste streams by 2025.
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OTHER IMPORTANT ECONOMIC GROWTH SECTORS
Indian Context:
 The manufacturing sector is expected to contribute 25% to India's GDP by 2025, as per the
'Make in India' initiative.
 India's fintech market is expected to reach $150 billion by 2024, growing at a CAGR of 22%.
 The Indian space industry is expected to reach $50 billion by 2024, driven by increased
private sector participation.
Global Context:
 The global artificial intelligence market is expected to reach $267 billion by 2024, growing at
a CAGR of 33.2%.
 The global geospatial analytics market is expected to reach $158 billion by 2024, growing at a
CAGR of 16.9%.
 The global space industry is expected to reach $1.1 trillion by 2040, driven by the growth of
satellite constellations and space tourism.
DOMESTIC ECONOMIC INSTITUTIONS
RBI ANNUAL REPORT 2022-2023
•The RBI's balance sheet size stood at Rs. 61.4 lakh crore as of March 2023, an increase of
6.2% over the previous year.
•The RBI transferred Rs. 99,122 crore as surplus to the government for the fiscal year 2022-
23.
•The RBI's foreign exchange reserves stood at $595.7 billion as of March 2023, an increase of
$58.7 billion over the previous year.
EXIM BANK SETS UP INDIA EXIM FINSERVE
•Exim Bank's loan portfolio grew by 12.5% to Rs. 1.4 lakh crore in FY23.
•Exim Bank's net profit increased by 25% to Rs. 738 crore in FY23.
•Exim Bank has supported over 600 project export contracts valued at $52 billion in 65
countries.
DOMESTIC SYSTEMICALLY IMPORTANT BANKS (D-SIBS)
•As of March 2023, there were 3 banks classified as D-SIBs: SBI, ICICI Bank, and HDFC Bank.
•D-SIBs are required to maintain additional Common Equity Tier 1 (CET1) capital of 0.6% to 1%
of their risk-weighted assets.
•The failure of a D-SIB can have a significant impact on the domestic financial system and the
economy.
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NABARD PARTNERS
NABARD PARTNERS WITH ADB TO HELP FARMING SECTOR

 NABARD's total assets stood at Rs. 7.6 lakh crore as of March 2023, an increase of 15%
over the previous year.
 NABARD disbursed Rs. 3.1 lakh crore in loans during FY23, of which 70% was for
agriculture and allied activities.
 NABARD has set up an Agri-Fintech Fund with a corpus of Rs. 500 crore to promote
innovation and digitization in the agriculture sector.
NHB OPERATIONALISES RS 10,000-CRORE URBAN INFRA FUND
 NHB's total assets stood at Rs. 86,852 crore as of March 2023, an increase of 11% over
the previous year.
 NHB disbursed Rs. 25,177 crore in loans during FY23, of which 80% was for affordable
housing.
 NHB has launched a Special Refinance Facility of Rs. 10,000 crore to provide liquidity
support to HFCs.
SIDBI PARTNERS WITH TDB TO BOOST MSMEs
 SIDBI's total assets stood at Rs. 2.4 lakh crore as of March 2023, an increase of 18% over
the previous year.
 SIDBI disbursed Rs. 75,000 crore in loans to MSMEs during FY23, supporting over 1.5
million enterprises.
 SIDBI has set up a Rs. 1,000 crore Fund of Funds for Startups (FFS) to promote innovation
and entrepreneurship.
INDIA & ITS START-UP ECOSYSTEM
 India has the third-largest startup ecosystem in the world, with over 100 unicorns (startups
valued at over $1 billion).
 Indian startups raised $42 billion in funding in 2021, a 3.7x increase from the previous
year.
 The government launched the Startup India initiative in 2016 to promote entrepreneurship
and innovation.
OTHER FINANCIAL INSTITUTIONS
 IFCI's total assets stood at Rs. 26,769 crore as of March 2023, a decline of 5% from the
previous year.
 IIBI was merged with IDBI Bank in 2005 to create a larger and stronger entity.
 TFCI's loan portfolio grew by 15% to Rs. 8,500 crore in FY23, with a focus on financing
tourism infrastructure projects.
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INTERNATIONAL ECONOMIC INSTITUTIONS
IMF-WORLD BANK ANNUAL MEETINGS 2023

 The IMF projected global growth to slow down to 2.7% in 2023, 0.2 percentage points lower
than its July forecast.
 The World Bank committed $115 billion in financing in FY23 to support developing countries,
a record high.
 The IMF and World Bank called for urgent action to address the global debt crisis, with 60%
of low-income countries in or at high risk of debt distress.
WORLD ECONOMIC FORUM
 The WEF's Global Risks Report 2023 identified climate action failure, extreme weather
events, and biodiversity loss as the top three global risks.
 The WEF launched the Partnering for Racial Justice in Business initiative to promote
diversity, equity, and inclusion in the workplace.
 The WEF's Global Gender Gap Report 2023 found that the global gender gap has closed by
68.1%, with Iceland, Finland, and Norway leading the rankings.
WORLD TRADE ORGANIZATION
 The WTO's World Trade Report 2023 highlighted the need for resilient and sustainable supply
chains in the post-pandemic world.
 The 12th Ministerial Conference of the WTO, held in June 2022, reached agreements on
fisheries subsidies, COVID-19 vaccines, and food security.
 The WTO's dispute settlement system remains paralyzed due to the US blocking appointments to
the Appellate Body.
BRICS
 BRICS countries account for 41% of the global population, 24% of global GDP, and 16% of global
trade.
 The New Development Bank has approved over $30 billion in loans for infrastructure projects in
BRICS countries since its establishment in 2015.
 The BRICS Business Council has identified energy, digital economy, and infrastructure as priority
areas for cooperation.
GROUP OF SEVEN (G7)
 The G7 countries account for 10% of the world's population, 46% of global GDP, and 32% of
global exports.
 The G7 Summit 2023, held in Hiroshima, Japan, focused on promoting a free and open Indo-
Pacific, supporting Ukraine, and addressing global challenges like climate change and health
security.
 The G7 launched the Build Back Better World (B3W) partnership to mobilize private sector
capital for infrastructure projects in developing countries.
UN COMMISSION FOR SOCIAL DEVELOPMENT (CSocD)
 The 60th session of the CSocD, held in February 2022, focused on the theme "Inclusive and
resilient recovery from COVID-19 for sustainable livelihoods, well-being, and dignity for all".
 The CSocD adopted three resolutions on social dimensions of the New Partnership for Africa's
Development, youth development, and affordable housing and social protection systems for all.
 The CSocD called for urgent action to address the disproportionate impact of the pandemic on
vulnerable and marginalized groups.
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ENGAGING WITH APEC
 APEC countries account for 38% of the global population, 60% of global GDP, and 48% of global
trade.
 The APEC Putrajaya Vision 2040, adopted in 2020, aims to create an open, dynamic, resilient, and
peaceful Asia-Pacific community by 2040.
 The APEC Trade Ministers' Meeting, held in June 2023, focused on strengthening regional economic
integration, promoting sustainable and inclusive growth, and supporting the multilateral trading
system.
MULTILATERAL DEVELOPMENT BANKS (MDBs)
 MDBs have committed over $200 billion in financing for COVID-19 response and recovery efforts in
developing countries.
 The G20 has called for MDBs to scale up lending, mobilize private capital, and align their operations
with the Paris Agreement and the Sustainable Development Goals.
 The Asian Infrastructure Investment Bank (AIIB) has emerged as a major player in infrastructure
financing, with 103 members and $25 billion in approved projects.
TRADE AND DEVELOPMENT REPORT 2023
 The report highlighted the uneven and fragile recovery from the COVID-19 pandemic, with developing
countries facing multiple challenges like debt distress, food insecurity, and climate change.
 The report called for a new global social contract to address inequalities and build resilience,
including through progressive taxation, social protection, and green industrial policies.
 The report warned that the global economy could face a "lost decade" if urgent action is not taken to
support developing countries and reform the international financial architecture.
GLOBAL FINANCIAL INNOVATION NETWORK (GFIN)
 The GFIN was launched in 2019 to promote collaboration and knowledge sharing among financial
regulators on innovation and emerging technologies.
 The GFIN has 60 members from 27 countries, including central banks, financial regulators, and
international organizations.
 The GFIN's work priorities include cross-border testing, regulatory sandboxes, and RegTech/SupTech.
ASIAN DEVELOPMENT BANK (ADB)
 The ADB committed a record $31.6 billion in loans, grants, and investments in 2020 to support its
developing member countries.
 The ADB's Strategy 2030 aims to achieve a prosperous, inclusive, resilient, and sustainable Asia and
the Pacific, with a focus on addressing poverty, inequality, climate change, and gender disparities.
 The ADB has launched a $9 billion COVID-19 response package to support its developing member
countries, including through vaccine procurement, health systems strengthening, and economic
recovery programs.
NEW DEVELOPMENT BANK (NDB)
 The NDB has approved over $30 billion in loans for infrastructure projects in BRICS countries since
its establishment in 2015.
 The NDB's membership has expanded beyond BRICS to include Bangladesh, UAE, Uruguay, and
Egypt.
 The NDB has committed to aligning its operations with the Paris Agreement and the Sustainable
Development Goals, with a focus on renewable energy, sustainable infrastructure, and social
development.
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INTERNATIONAL MIGRATION OUTLOOK 2023
•The report found that the COVID-19 pandemic had a significant impact on
international migration, with a sharp decline in migration flows and remittances in
2020.
•The report highlighted the importance of well-managed migration policies for
supporting economic recovery and addressing labor market shortages in OECD
countries.
•The report called for greater international cooperation on migration, including through
regular pathways for labor migration, skills partnerships, and integration programs for
migrants.
INTERNATIONAL FINANCE CORPORATION (IFC)
•IFC committed a record $31.5 billion in financing in FY2022 to support private sector
development in emerging markets.
•IFC's priorities include creating markets in fragile and conflict-affected states,
promoting gender equality, and supporting climate action and sustainable
development.
•IFC has launched a $4 billion Global Health Platform to support the development and
distribution of COVID-19 vaccines, tests, and treatments in developing countries.
PARIS CLUB
•The Paris Club has provided debt relief to over 100 countries since its establishment
in 1956, including through the Heavily Indebted Poor Countries (HIPC) Initiative and
the Multilateral Debt Relief Initiative (MDRI).
•In response to the COVID-19 pandemic, the Paris Club has supported the G20 Debt
Service Suspension Initiative (DSSI) and the Common Framework for Debt Treatments
beyond the DSSI.
•The Paris Club has called for greater transparency and sustainability in sovereign
lending and borrowing practices, including through the adoption of the G20
Operational Guidelines for Sustainable Financing.
COMPREHENSIVE TRADE AND ECONOMIC PARTNERSHIP

AGREEMENT (TEPA)
•India and the UK launched negotiations for a Comprehensive Trade and Economic
Partnership Agreement (TEPA) in January 2022, with the aim of doubling bilateral trade
by 2030.
•The TEPA is expected to cover a wide range of areas, including trade in goods and
services, investment, intellectual property rights, and sustainable development.
•India and the UK have also launched an Enhanced Trade Partnership (ETP) to address
market access barriers and promote economic cooperation in areas like technology,
infrastructure, and green growth.
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INDICES
GLOBAL INNOVATION INDEX 2023

Context: India retains 40th rank out of 132 economies in the Global Innovation Index 2023 rankings
published by the World Intellectual Property Organization (WIPO).
What is the Global Innovation Index (GII)?
 Developed by Cornell University, INSEAD, and the World Intellectual Property Organisation,
the Global Innovation Index (GII) is a ranking of countries based on certain indicators like
their success and capacity in innovation.
 This index is based on both subjective and objective data derived from different sources.
 The Global Innovation Index (GII) is published yearly by the World Intellectual Property
Organisation (WIPO).
 The GII ranks 131 countries based on 81 indicators across 7 pillars:
o Institutions
o Human capital and research
o Infrastructure
o Market sophistication
o Business sophistication
o Knowledge and technology outputs
o Creative outputs
This index was started in 2007 by INSEAD and world business, which is a British magazine.
India's Performance in GII 2023:
 India ranked 40th out of 132 economies, maintaining its position from the previous year.
 India performed well in knowledge and technology outputs (29th) and market sophistication
(31st) pillars.
 However, India needs improvement in institutions (67th), human capital and research (51st),
and creative outputs (58th) pillars.
Global Context:
 Top 5 economies: Switzerland, Sweden, United States, United Kingdom, and Netherlands.
 China ranked 12th, making it the only middle-income economy in the top 30.
 Least Developed Countries (LDCs) continue to lag behind, with only Rwanda (102nd) and
Malawi (114th) in the top 120.
HUMAN DEVELOPMENT INDEX (HDI) FOR 28 LAKH PVTGS

Context: Recently, the Union Minister for Tribal Affairs has announced that the government is going
to 'design a survey' that can gauge the Human Development Index (HDI) specifically for about 28
lakh people of the Particularly Vulnerable Tribal Groups (PVTGs) living in over 22,000 villages across
the country.
What Is the Human Development Index (HDI)?
 The HDI is a summary measure of human development, measuring the average achievement of
a country in three basic dimensions of human development:
 Long and healthy life (measured by life expectancy at birth)
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 Education (measured by mean years of schooling and expected years of schooling)
 A decent standard of living (measured by GNI per capita in PPP terms in US$)
 The Human Development Index (HDI) is a statistic developed and compiled by the United
Nations since 1990 to measure various countries' levels of social and economic development.
India's Performance in HDI 2022:
 India ranked 132nd out of 191 countries in the HDI 2022, released by the UNDP.
 India's HDI value for 2021 was 0.633, which put the country in the medium human development
category.
 Between 1990 and 2021, India's HDI value increased from 0.429 to 0.633, an increase of
47.6%.
About the Plan for PVTGs:
The Particularly Vulnerable Tribal Groups (PVTGs) are more vulnerable among the tribal groups and
are determined by the given criteria:
 They have declining or stagnant populations
 Low levels of literacy
 Pre-agricultural levels of technology
 Economically backward
GLOBAL HUNGER INDEX 2023
Context: India has been ranked at 111 out of 125 countries in the Global Hunger Index (GHI) 2023,
further lowering its position to 107 (out of 121 countries) in 2022.
Highlights of the Index:
About: The Global Hunger Index is a tool for comprehensively measuring

and tracking hunger at global, regional, and national levels.
Indicators: The scores are based on the values of four component

indicators:
•Undernourishment based on caloric intake
•Child (under age five) stunting based on height
•Child (under age five) wasting based on weight
•Child mortality (before age five)
Based on the values of the four indicators, a GHI score is calculated on a 100-point scale reflecting the
severity of hunger, where 0 is the best possible score (no hunger) and 100 is the worst.
Key points:
•Performance of India: The index has put India's child wasting rate at 7 per cent highest in the
world during 2018–22 reflecting acute under nutrition.
•The rate of undernourishment in India stood at 6 per cent and under-five mortality at 3.1 per
cent.
•The report also mentioned that the prevalence of anemia in women aged between 15 and 24
years stood at 1 per cent.
•The overall score for India has been put at 7 in the ranking, which is categorized as serious.
•India's neighboring countries: Pakistan (102), Bangladesh (81), Nepal (69th), and Sri Lanka (60),
have fared better than them in the index.
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Global scenario:
 The 2023 GHI score for the world is 3, considered moderate and less than one point below the
world's 2015 GHI score of 19.1.
 Since 2017, the prevalence of undernourishment, one of the indicators used in the calculation
of GHI scores, has been on the rise, and the number of undernourished people has climbed
from 572 million to about 735 million.
 Concerns: The compounding impacts of climate change, conflicts, economic shocks, the global
pandemic, and the Russia-Ukraine war have exacerbated social and economic inequalities and
slowed or reversed previous progress in reducing hunger in many countries.
HENLEY PASSPORT INDEX 2023
Context: Recently, Henley Passport Index 2023 has been released which assess the world's
passports according to the number of destinations their holders can access without a prior visa.
About the Index:
 Released by: Henley and Partners.
 The index includes 199 different passports and 227 different travel destinations.
Key Findings:
 Singapore is on the Top with most powerful passport in the world, with its citizens able to visit
192 travel destinations out of 227 around the world visa-free.
 Germany, Italy, and Spain occupy the second place.
 Japan remained at the third position with countries like Austria, Finland, France, Luxembourg,
South Korea, and Sweden.
 India's Performance: India has climbed seven places on Henley Passport Index 2023 to 80th
rank from 87 last year.
 Henley Openness Index:
 An exclusive new research has also been released named as 'Henley Openness Index' which
measures "how many nations does a country allow visa-free access to".
 Here, India was ranked 94 out of a total of 97 ranks for allowing only four countries visa-free
access.
 The Top 20 'most open' countries are all small island nations or African states, except for
Cambodia.
 At the bottom of the Index were four countries for scoring zero for not permitting visa-free access
for any passport — namely, Afghanistan, North Korea, Papua New Guinea, and Turkmenistan.
LOGISTICS PERFORMANCE INDEX (LPI) 2023
Context: India has improved its ranking in the World Bank's Logistic Performance Index 2023 by six
places, owing to significant investments in both soft and hard infrastructure as well as technology,
which has led to an improvement in the country's port performance.
Key Highlights of the Report
 Singapore and Finland are the most efficient and highest-ranked LPI countries.
 India's ranking: According to the report, India's rank in the index of 139 countries has risen to
38 from 44 in 2018.
 International shipments: In 2023, India's ranking for international shipments improved
significantly, moving up from 44 in 2018 to 22.
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 Logistics competence and equality: The country also climbed four places to rank 48 in logistics
competence and equality.
 Timeline: In terms of timelines, India saw a significant improvement, moving up 17 places in the
rankings.
 Tracking and tracing: Additionally, India improved three places in tracking and tracing, now
ranking at 38.
NITI AAYOG'S ANNUAL HEALTH INDEX
Context: The NITI Aayog recently released the 'annual health index' for the Covid year 2020-21.
Key highlights of the annual health index:
 Top Performer: The three southern states of Kerala, Tamil Nadu, and Telangana emerged as the
top performers among the 19 'larger states' in the index.
 Low Performer: Bihar (19th), Uttar Pradesh (18th), and Madhya Pradesh (17th) are at the
bottom of the list.
 Incremental Performer: Rajasthan, Uttarakhand, and Odisha emerged as the top three
performers in 2020-21, as compared to previous index (2019-20).
 Smaller states and UT: Tripura was the best among the 'smaller states', while Delhi ranked at
the bottom of the Union territories' list.
FOOD PRICE INDEX
Context: The Food and Agriculture Organization's (FAO) price index, which tracks the most globally
traded food commodities, averaged 118.5 points in December 2023, down 1.5% from November
and 10.1% below December 2022 levels.
The Index
 The FAO Food Price Index tracks monthly changes in the international prices of commonly
traded food commodities.
 The FAO Food Price Index (FFPI) is a measure of the monthly change in international prices
of a basket of food commodities.
 It consists of the average of five commodity group price indices weighted by the average
export shares of each of the groups over 2014-2016.
Key Findings (as of April 2024):
 The FAO Food Price Index averaged 127.2 points in March 2024, down 1.1 points (0.9%) from
February, marking the twelfth consecutive monthly decline and reaching its lowest level since
September 2021.
 The latest decrease reflected drops in the vegetable oil and dairy price indices, while those
of cereals, meat, and sugar rose.
 The FAO Cereal Price Index averaged 135.6 points in March, up 1.7 points (1.3%) from
February and 18.1 points (15.4%) above its March 2023 value.
 The FAO Vegetable Oil Price Index averaged 129.6 points in March, down 3.2 points (2.4%)
month-on-month, driven by lower prices across palm, soy, rapeseed, and sunflower oils.
 The FAO Dairy Price Index averaged 134.2 points in March, down 1.9 points (1.4%) from
February, marking the ninth consecutive monthly decline, with butter and milk powder prices
registering the steepest drops
 .
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INDIA'S MANUFACTURING PMI
Context: Throughout 2023, India's manufacturing PMI remained above 50, signalling an expanding
output, with the PMI hitting 56 in November. However, in October, growth eased to the slowest pace
since February with the uptick in new orders hitting a one-year low, as the Global India
Manufacturing PMI slipped to 55.5 from 57.6 in September.
About the Index
 Standard & Poor's Manufacturing Purchasing Managers' Index (PMI) is a weighted average
of indices constituting new orders, output, employment, suppliers' delivery times, and stocks
of purchases.
 It indicates the overall health of the economy and its key economic drivers as exports,
capacity utilisation, employment and inventories, among other things.
 A PMI reading above 50 indicates an expansion of the manufacturing sector compared to the
previous month; a reading below 50 represents a contraction, while a reading at 50 indicates
no change.
Latest Findings (as of April 2024):
 The S&P Global India Manufacturing Purchasing Managers' Index (PMI) rose to 54.3 in March
2024 from 52.5 in February, indicating a stronger improvement in the health of the sector.
 Output and new orders expanded at the fastest rates since November 2022, while
international sales rose at the quickest pace since May 2022.
 Employment rose for the third month running, albeit marginally, while input cost inflation
accelerated to a four-month high.
 Business confidence regarding the year-ahead outlook for production strengthened to a
seven-month high.
PERIODIC LABOUR FORCE SURVEYS (PLFS) 2019-23

Context: Recent findings of the Periodic Labour Force Surveys (PLFS) assessing various forms of
employment from April-June 2019 to 2023 have been released.
Key Findings:
Trends in Gender Gap:
 The gender gap in earnings has increased for self-employed workers but decreased for regular
wage workers.
 From 2019 to 2022, male regular wage workers earned 34% more than women, which
decreased to 24% in 2023.
Average Weekly Work Hours:
 Women work fewer hours than men across all types of work. In 2023, the largest gap in work
hours was observed among self-employed workers, with men working 50% more hours than
women.
 The gap was the smallest for regular wage workers, where men and women worked 51 and 43
hours per week, respectively.
 Earnings per Hour: When considering hourly earnings, the gap significantly reduces for regular
wage workers.
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 In 2023, men in this category earned 24% more than women over the week, but also worked
19% longer.
 The gap in hourly earnings for regular wage workers was only around 4%, down from 11% in
2019.
 Inequality in Hourly Earnings: Inequality in hourly earnings is higher for casual workers and the
self-employed, though not as high as when considering total earnings.
 In 2023, male casual workers earned 23% more per hour than women, while the gap increased
for the self-employed, reaching 87% in 2023.
 Factors Influencing Hours of Work: The choice of working hours is influenced by various factors,
 Including social norms that require women to handle domestic and child-rearing duties.
 This can limit women's choices for full-time employment and lead to disparities in working hours.
ALL-INDIA CONSUMER PRICE INDEX NUMBERS FOR AGRICULTURAL AND RURAL LABOURERS
Context: The All-India Consumer Price Index Number for Agricultural Labourers and Rural Labourers
(Base: 1986-87=100) for the month of November, 2023 has been released.
Key Highlights
 Agricultural Labourers: Increased by 12 points to reach 1253.
 Rural Labourers: Increased by 11 points to stand at 1262.
 Contribution Factors: Major contributor, accounting for 10.85 and 10.50 points in Agricultural
and Rural Labourers' indices, driven by price hikes in rice, wheat atta, pulses, onion, turmeric
whole, garlic, mixed spices, etc.
 The All-India Consumer Price Index Number for Agricultural Labourers (CPI-AL) and Rural
Labourers (CPI-RL) for March 2024 increased by 12 points each to stand at 1301 and 1310
points, respectively.
 The major contribution towards the rise in general index of Agricultural Labourers and Rural
Labourers came from food group, contributing 11.32 and 11.07 points, respectively, mainly
due to increase in prices of rice, wheat-atta, jowar, bajra, ragi, maize, milk, onion, chillies
green/dry, ginger, mixed spices, vegetables & fruits, etc.
COMPOSITE WATER MANAGEMENT INDEX REPORT

 Context: NITI Aayog weighs discontinuing key water report launched 5 years ago. It brought
India's water challenges into spotlight and ranked states in terms of efficacy based on 28
parameters.
What is Composite Water Management Index report
 NITI Aayog has developed the CWMI to enable effective water management in India and states
in the face of this growing crisis.
 The CWMI is envisioned to bring about much-required improvements in water resource
management and conservation in India as it provides an annual snapshot of the water sector
status and the water management performance of the different states and UTs in India.
 It measures both the overall progress made by states in water management and the incremental
improvement in performance across time.
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 The Index comprises nine themes (each having an attached weight) with 28 different indicators
covering groundwater and surface water restoration, major and medium irrigation, watershed
development, participatory irrigation management, on-farm water use, rural and urban water
supply, and policy and governance.
 The report was prepared in association with three ministries — Water Resources, Drinking Water
& Sanitation, and Rural Development
 The first edition was launched five years ago in June 2018, and the second edition, launched in
August 2019, was for 2017-18.
Latest Observations (as of April 2024):
 The latest report maps the performance of states for 2020-21 and 2021-22, and points out
that water scarcity has become a "national emergency".
 The average annual per capita water availability is expected to reduce to 1,368 cubic meters
per person per year by 2025 from 1,486 cubic meters per person per year in 2021.
 Gujarat continues to lead in performance, followed by Andhra Pradesh and Madhya Pradesh.
Rajasthan has shown significant improvement, while Goa has dropped further in the rankings.
 India is facing the worst water crisis in its history, with over 600 million people facing extreme
water stress. The situation is expected to worsen, with the country's water demand projected to
be twice the available supply by 2030, implying severe water scarcity for hundreds of millions
of people and an eventual ~6% loss in the country's GDP.
EXPORT PREPAREDNESS INDEX (EPI) 2022
Context: Recently, the third edition of the report titled 'Export Preparedness Index (EPI) 2022' for
States/UTs of India was released.
About the Report:
 Released by: NITI Aayog
 Aim: To evaluate the export performance and pending potential of the Indian States and Union
Territories.
 Export Preparedness Index (EPI) is a comprehensive tool that measures the export
preparedness of the States and UTs in India.
 The index undertakes a comprehensive analysis of States and UTs across export-related
parameters to identify their strengths and weaknesses.
 Developing the methodology for the index is an evolving process that constantly incorporates
stakeholder feedback.
Significance:
 Exports are vital for simulating economic growth and development in a country, which
necessitates understanding the factors that influence export performance.
 Export Performance is an output-based indicator that gauges the growth of a state's export over
the previous year and analyses its export concentration and footprint on the global markets.
Highlights of the Report:
 Tamil Nadu has been ranked the 'One' State in Export Preparedness Index (EPI) for 2022.
 It is followed by Maharashtra and Karnataka.
 Gujarat has been pushed to the fourth slot this time.
 The report also mentioned that Karnataka and Tamil Nadu have the highest number of GI
products being exported.
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 EPI assesses the performance of the States and UTs across four pillars – Policy, Business
Ecosystem, Export Ecosystem, and Export Performance.
 Each pillar is composed of sub-pillars, which in turn capture a state's performance using
relevant indicators.
 Policy Pillar evaluates states and UTs' performance based on its adoption of the export-related
policy ecosystem at a state and district level as well as the institutional framework surrounding
the ecosystem.
 Business Ecosystem assesses the prevailing business environment in a state/UT, along with the
extent of business-supportive infrastructure, and a state/UTs' transport connectivity.
 Export Ecosystem focuses on the export-related infrastructure in a state/UT along with the trade
support provided to the exporters, and the prevalence of Research and Development in the
state/UT to foster innovation.
LIFE CYCLE OF WORKING WOMEN INDEX
Context: The World Bank has released India's score for index on the life cycle of a working woman
obtained down to 74.4 out of a possible 100.
Highlights of the index:
 Title of the report: The index was developed based on report named 'Women, Business and
the Law 2023'.
 India scored higher than the 63.7 average for the South Asian region, though lower than
Nepal which had the region's highest score of 80.6.
 Out of the 190 economies covered in the Index, only 14 scored a perfect 100: Belgium,
Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Latvia, Luxemburg, The
Netherlands, Portugal, Spain and Sweden.
 For India, the Index used data on the laws and regulations applicable in Mumbai.
 India's score for the index on the life cycle of a working woman has improved to 76.8 out of
a possible 100, according to the 'Women, Business and the Law 2024' report.
 This score is higher than the previous year's score of 74.4 and above the 65.1 average for
the South Asian region.
 India has made progress in the areas of workplace equality, entrepreneurship, and pension,
but still lags behind in the areas of mobility, pay, marriage, and parenthood.
 Globally, the average score for the index has increased from 77.1 in 2023 to 77.8 in 2024,
with 18 economies now scoring a perfect 100.
 The report highlights that despite the progress made, women still face significant barriers to
economic participation and opportunity, particularly in low- and middle-income countries.
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AGRICULTURE
CROP PRODUCTION
List of Major Crops Producing States in India CEREALS
 Wheat: Uttar Pradesh, Punjab, and Haryana
 Gram: Madhya Pradesh and Tamil Nadu
 Barley: Maharashtra, Uttar Pradesh, and Rajasthan
 Bajra: Maharashtra, Gujarat, and Rajasthan
 Rice: West Bengal, Andhra Pradesh, Chhattisgarh, and Tamil Nadu
CASH CROPS
 Poppy: Uttar Pradesh and Himachal Pradesh
 Sugarcane: Uttar Pradesh and Maharashtra
OIL SEEDS
 Coconut: Kerala and Tamil Nadu
 Groundnut: Andhra Pradesh, Gujarat, and Tamil Nadu
 Sesame: Uttar Pradesh and Rajasthan
 Rape & Mustard: Rajasthan and Uttar Pradesh
 Linseed: Madhya Pradesh and Uttar Pradesh
 Sunflower: Maharashtra and Karnataka
FIBRE CROPS
 Silk: Karnataka and Kerala
 Hemp: Madhya Pradesh and Uttar Pradesh
 Cotton: Maharashtra and Gujarat
 Jute: West Bengal and Bihar
PLANTATIONS
 Rubber: Kerala and Karnataka
 Coffee: Karnataka and Kerala
 Tobacco: Gujarat, Maharashtra, and Madhya Pradesh
 Tea: Assam and Kerala
SPICES
 Turmeric: Andhra Pradesh & Odisha
 Ginger: Kerala and Uttar Pradesh
 Cashew Nuts: Kerala, Tamil Nadu, and Andhra Pradesh
 Pepper: Kerala, Karnataka, and Tamil Nadu
Largest Producers in India
 Sugarcane: Uttar Pradesh
 Potato: Uttar Pradesh
 Tea: Assam
 Paddy: West Bengal
 Wheat: Uttar Pradesh
 Saffron: Jammu & Kashmir
 Jute: West Bengal
 Tobacco: Andhra Pradesh
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 Bananas: Tamil Nadu
 Onion: Maharashtra
 Cashew nuts: Maharashtra
 Cassava: Tamil Nadu
 Black pepper: Kerala
 Cotton: Gujarat
 Litchis: Bihar
 Garlic: Madhya Pradesh
 Coffee: Karnataka
 Large cardamom: Sikkim
 Bamboos: Assam
 Small cardamom: Kerala
 Chilli: Andhra Pradesh
 Groundnut: Gujarat
PERENNIAL VARIETY OF RICE
Context: As of April 2024, farmers in China are now growing a perennial variety of rice called
PR23, which does not need to be planted every year.
About Perennial rice:
 Perennial rice varieties are long-lived and capable of re-growing season after season without
re-seeding. They are being developed by plant geneticists at several institutions worldwide.
 Like many other perennial plants, perennial rice can spread by horizontal stems below or just
above the soil surface. They also reproduce sexually by producing flowers, pollen, and seeds.
 It is the seeds that are harvested and eaten by humans, as with any other grain crop.
NEW DWARF VARIETIES OF KALANAMAK RICE

Context: As of April 2024, the Indian Agriculture Research Institute has successfully tested two
new dwarf varieties of Kalanamak rice - Pusa Narendra Kalanamak 1638 and Pusa Narendra
Kalanamak 1652 - in Uttar Pradesh, which give double the yield.
About Kalanamak Rice:
•Kalanamak rice is a traditional variety of paddy with a black husk and powerful aroma. It is
regarded as a gift from Lord Buddha to the people of Sravasti (the capital of ancient Kosala)
when he visited the region after enlightenment.
•It is grown in 11 regions of the terai region in the north-east of Uttar Pradesh and in Nepal. The
traditional variety has been prone to 'lodging,' a reason for its low yield of barely 2 to 2.5 tonnes
per hectare.
•Lodging is a condition where the plant's top becomes heavy due to grain formation, the stem
becomes weak, and the plant falls on the ground.
•The traditional Kalanamak rice is protected under the Geographical Indication (GI) tag system
since 2013. In 2018, it was awarded the "One District, One Product" label of Siddharth Nagar
district, an aspirational district in Uttar Pradesh's Terai belt.
'JOHA RICE' VARIETIES OF NORTH-EASTERN INDIA

Context: As per the Ministry of Science report released in April 2024, Joha rice, an aromatic rice
cultivated in the North-eastern region of India, is effective in lowering blood glucose and
preventing diabetes onset, making it an effective nutraceutical choice in diabetes management.
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About Joha Rice:
 Joha is a short-grain winter paddy known for its significant aroma and taste. It contains two
unsaturated fatty acids - linoleic acid (omega-6) and linolenic acid (omega-3).
 Traditional claims suggest that consumers of Joha rice have a low incidence of diabetes and
cardiovascular diseases.
"MAKHIR" GINGER
Context: As of April 2024, Trinity Saioo, winner of the 2021 Padma Shri award for helping more
farmers in Meghalaya take up the cultivation of Lakadong turmeric, now plans to promote the
north-eastern State's unique "Makhir" ginger.
About "Makhir" Ginger:
 "Sying Makhir" or "Ing Makhir," as it is locally known by the people of Meghalaya, is an
indigenous ginger variety native to the hilly terrains of the state. It is scientifically known as
Zingiber rubens and is considered the best ginger variety in India.
 The name "Ing Makhir" comes from the Khasi words "Sying" (ginger) and "Makhir" (small). The
Pnar people from the Jaintia Hills call it "Ing Traw," which also translates to small ginger.
 Meghalaya has two popular types of ginger: "Makhir" and "Nadia." Although small in size,
"Makhir" ginger provides immense health benefits.
LAKADONG TURMERIC
Context: As of April 2024, Lakadong turmeric, a variety found in the Jaintia Hills district of
Meghalaya, India, is known as the world's best turmeric due to its high curcumin content.
About Lakadong Turmeric:
 Lakadong turmeric is known for its high curcumin content, typically around 7-12%,
significantly higher than regular turmeric's 2-3% curcumin content.
 Curcumin is the compound responsible for turmeric's bright yellow color and various health
benefits.
UDANGUDI PANANGKARUPATTI
Context: As of April 2024, the Intellectual Property of India (IPI) conferred a Geographical
Indication (GI) tag for the famous 'Udangudi Panangkarupatti,' a product widely associated with
the Tirunelveli District Palmyrah Products Cooperative Federation Limited.
About Udangudi Panangkarupatti:

 Udangudi Panangkarupatti, also known as palm jaggery, is prepared using palm sap collected from
the inflorescence of palmyra trees growing on the red sand dunes in and around the Tiruchendur
region, such as Srivaikuntam, Thoothukudi, Eral, Sathankulam, and Tiruchendur taluks.
 The Geographical Indications Registry recognized the uniqueness of this delicacy, known since time
immemorial, for its sucrose concentration, sap collection method, traditional preparation method,
and packaging methods.
 The Federation, registered on July 19, 1934, has 15 registered societies under the Udangudi Union,
the epicenter of Palmyra groves.
 Besides Udangudi Panangkarupatti, Thoothukudi is home to two other GI-tagged products: Kovilpatti
Kadalaimittai and Authoor Vetrillai.
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AYYAMPALAYAM NETTAI
Context: As of April 2024, Ayyampalayam, a town on the way towards Marudhanidhi dam in the
Dindigul district of Tamil Nadu, is known for its unique variety of coconut.
About Ayyampalayam Nettai:
 This coconut variety is grown in coconut farms just above the dam, bordering the catchment
area. The trees are 100 feet tall and have more than 60% oil content and an extremely sweet
kernel.
 On average, a single tree can yield about 120 nuts per year without applying chemical
fertilizers. The 'Ayyampalayam Nettai' coconuts are not just disease-resistant but also drought-
resistant.
GENETICALLY ENGINEERED (GE) COTTON
Context: As per the minutes of the 149th meeting of the Genetic Engineering Appraisal
Committee (GEAC) released in April 2024, approvals for biosafety research trials (BRL) of GE
cotton were revealed. However, three states have refused to give a 'No-Objection Certificate
(NOC)' for the trials.
About Bt-cotton: About GE-Cotton: Recent GM-Cotton alterations:
•Bt cotton is engineered to •Genetically engineered cotton, •As of April 2024, Bayer AG, a
produce a toxin derived from the also known as genetically German multinational company,
bacterium Bacillus thuringiensis modified or GM cotton, refers to is introducing a modification in
(Bt) that is toxic to certain insect cotton plants altered through the cotton plant that will allow
pests, such as the bollworm. This genetic engineering techniques farmers to spray the herbicide
toxin helps protect cotton plants to exhibit specific traits. 'glyphosate.'
from insect damage, reducing •Genetic engineering involves •The transgenic cotton, Bollgard II
the need for synthetic manipulating an organism's Roundup Ready Flex (BG-II RRF),
insecticides and increasing genetic material, typically by contains three alien genes:
yields. introducing genes from other •'cry1Ac' and 'cry2Ab,' isolated
•Another commonly introduced organisms, to confer desired from a soil bacterium, Bacillus
trait in GM cotton is herbicide characteristics. thuringiensis (Bt), coding for
tolerance. proteins toxic to the American
bollworm, spotted bollworm,
and tobacco caterpillar insect
pests.
•'cp4-epsps,' sourced from
another soil bacterium,
Agrobacterium tumafaciens.
COFFEE (PROMOTION AND DEVELOPMENT BILL), 2022

Context: As of April 2024, the Ministry of Commerce and Industry plans to replace the 80-year-old
Coffee Act with the new Coffee (Promotion and Development Bill), 2022. The government has
also proposed repealing the decades-old laws on tea, spices, and rubber and introducing new
legislation to increase ease of doing business and promote the development of these sectors.
About the Coffee Act, 1942:
 The Coffee Act, 1942 was first introduced during World War II to protect the struggling Indian
coffee industry from the economic downturn caused by the war.
 The new Coffee (Promotion and Development Bill), 2022 aims to streamline the sector and
promote its growth.
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ASIAN PALM OIL ALLIANCE (APOA)
Context: As of April 2024, the apex edible oil industry associations from five major palm oil-
importing countries in Asia - India, Pakistan, Sri Lanka, Bangladesh, and Nepal - have come
together to form the Asian Palm Oil Alliance (APOA).
About Asian Palm Oil Alliance (APOA):
 The Asian Palm Oil Alliance (APOA) is initiated by the Apex Solvent Extractors association of
five South-Asian countries – India, Bangladesh, Nepal, Pakistan, and Sri Lanka.
 Objective: To gain collective bargaining power, make imports sustainable, and safeguard the
economic and business interests of palm oil-consuming countries.
 The alliance would work towards ensuring that palm oil is recognized as a high-quality,
economical, and healthy vegetable oil and to change its negative image.
 APOA membership would be further expanded to include companies or industry bodies
associated with palm oil production or refining across the continent.
 It will further work towards increasing the consumption of sustainable palm oil in member
countries.
RICE CULTIVATION IN INDIA
Context: As of April 2024, India remains the world's second-largest rice producer after China and
the largest exporter with a 40% share in global trade.
About Rice Cultivation in India:
 India has the largest area under rice cultivation and is the leading exporter of Basmati Rice to
the global market.
 Rice is mainly grown in rain-fed areas that receive heavy annual rainfall, making it
fundamentally a kharif crop in India. It is also grown during both summer and winter crop
seasons.
 West Bengal has the highest rice production in India.
 Climatic Requirements:
o In India, rice is grown under widely varying conditions of altitude and climate, from 8 to
35ºN latitude and from sea level to as high as 3,000 meters.
o Rice crop needs a hot and humid climate and is best suited to regions with high
humidity, prolonged sunshine, and an assured water supply.
o The average temperature required throughout the crop's life ranges from 21 to 37ºC,
while the maximum temperature it can tolerate is 40ºC to 42ºC.
SUGARCANE CULTIVATION IN INDIA
Important regions/zones for sugarcane cultivation in India:
 Broadly, there are two distinct agro-climatic regions of sugarcane cultivation in India: tropical
and subtropical.
 The tropical region shares about 45% and 55% of the total sugarcane area and production in
the country, respectively. It consists of the states of Maharashtra, Andhra Pradesh, Tamil
Nadu, Karnataka, Gujarat, Madhya Pradesh, Goa, Pondicherry, and Kerala.
 The sub-tropical region accounts for about 55% and 45% of the total area and production of
sugarcane, respectively. It includes Uttar Pradesh, Bihar, Haryana, and Punjab.
Crop distribution:
 Sugarcane-growing countries of the world lie between 36.7º north latitude and 31.0º south
latitude, extending from tropical to sub-tropical zones.
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 In India, sugarcane is cultivated from 8ºN to 33ºN latitude, except in cold hilly areas like the
Kashmir valley, Himachal Pradesh, and Arunachal Pradesh.
JUTE CULTIVATION IN INDIA
 Jute is a crop of hot and humid climates and is a carbon-neutral crop. It is also known as the
'golden fiber' and is one of the longest and most used natural fibers for various textile
applications.
 Temperatures ranging from 25-30°C and relative humidity of 70%–90% are favorable for
successful cultivation.
 The minimum rainfall required for jute cultivation is 1,000 mm. It needs 160-200 cm of
rainfall weekly, with extra needed during the sowing period.
 Soil type: New grey alluvial soil of good depth receiving silt from annual floods is most suitable
for jute. However, jute is widely grown in sandy loams and clay loams, especially in river
basins.
 pH range between 4.8-5.8 is best for its cultivation, so jute cultivation in red soils may require
high doses of manure.
 Plain land, gentle slopes, or lowland is ideal for jute cultivation. In India, the Ganga delta
region is excellent for jute cultivation as it has fertile alluvial soil, a favorable temperature, and
sufficient rainfall. This fertile geographic region is shared by both Bangladesh and India
(mainly West Bengal).
 Main jute-producing states: Jute is grown in nearly 83 districts of seven states - West Bengal,
Assam, Odisha, Bihar, Uttar Pradesh, Tripura, and Meghalaya. West Bengal alone accounts for
over 50% of raw jute production.
 Main jute-producing countries: The leading jute-producing countries are India, Bangladesh,
China, and Thailand. India is the world's largest producer of raw jute and jute goods,
contributing over 50% and 40% of global production, respectively.
 Jute is the 2nd most abundant natural fiber in the world after cotton. Almost 85% of the
world's jute cultivation is concentrated in the Ganges Delta.
 Bangladesh is the largest exporter of jute in the world, while India is placed second in export
and first.
TECHNOLOGIES FOR PRIMARY PROCESSING, STORAGE AND VALORISATION OF ONIONS
Context: As of April 2024, the Centre announced a Grand Challenge for the development of
"Technologies for Primary Processing, Storage and Valorisation of Onions".
About Onion cultivation in India:
 India is the second-largest onion-growing country in the world, and Indian onions are
famous for their pungency (sharp smell and taste) and are available year-round.
 There are 3 sowing seasons for the onion crop in India: Kharif (10%), Late Kharif (20%),
and Rabi (70%).
 The Rabi onion crop is the mainstay of India, and onion prices are normally lower during
these months due to greater supply.
 In 2023-24, the major onion-producing states are Maharashtra (39%), Karnataka, Madhya
Pradesh (17%), Gujarat, Bihar, Andhra Pradesh, Rajasthan, Haryana, and Telangana
 .
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The major export destinations are Bangladesh, Malaysia, Sri Lanka, UAE, Nepal, and Indonesia.
MILLETS (INTERNATIONAL YEAR OF MILLETS 2023)
Context: The United Nations observed 2023 as the International Year of Millets, following a
proposal by India, which wants to position itself as a global hub for millets.
What are Millets?
 Millet is a collective term referring to several small-seeded annual grasses cultivated as
grain crops, primarily on marginal lands in dry areas in temperate, subtropical, and tropical
regions.
 Examples: jowar (sorghum), ragi (finger millet), kodo (kodo millet), kutki (little millet), kakun
(foxtail millet), sanwa (barnyard millet), cheena (proso millet), kuttu (buckwheat), and
chaulai (amaranth).
Positives of millets:
 Nutritionally superior traits: Millets score over rice and wheat in minerals, vitamins, dietary
fiber content, and amino acid profile.
 For example, bajra (pearl millet) has iron, zinc, and protein levels comparable to wheat, but
it's gluten-free and has more fiber. Rotis made from bajra make one feel fuller for longer,
as they take more time to digest and do not raise blood sugar levels too fast.
Advantages as a crop:
 Millets are hardy and drought-resistant crops due to their short duration (70-100 days,
against 115-150 days for rice and wheat), lower water requirement (350-500 mm versus
600-1,250 mm), and ability to grow even on poor soils and hilly terrain.
DRAGON FRUIT CULTIVATION IN INDIA

 The dragon fruit (Hylocereus undatus) is indigenous to Mexico and is a member of the cacti
family.
 It is also known as 'Pitaya', 'Pitahaya', strawberry pear, noblewoman, and 'queen of the night'
throughout the world.
 Vietnam is now the main producer, helping boost its economy.
 Mizoram tops among the states that cultivate this fruit in India, with the red and pink varieties
giving better yield.
 It costs approximately Rs. 400 per kg in India as of April 2024.
 Climatic Conditions:
o It is hardy and grows in diverse climatic conditions with varied soils, especially in
India's semi-arid and arid regions.
o It prefers slightly acidic soil and can tolerate some salts in the soil too.
o Flowering and fruiting of dragon fruits coincide with the monsoon season in India (June
to November).
INDIA'S TEA INDUSTRY
 In India, tea is cultivated in almost 15 states, of which Assam, West Bengal, Tamil Nadu, and
Kerala are the major tea-growing states, accounting for nearly 98% of the total production.
 India is also known for producing some of the world's finest teas, like the Darjeeling, Assam,
Sikkim, Nilgiris, and Kangra tea varieties.
 However, India's tea exports declined marginally to around 196 million kg in 2021 from 210
million kg in 2020.
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 As of April 2024, small tea growers (STGs) and industry stakeholders fear that news of tea
consignments being rejected in the international market may further hit Indian tea exports.
 According to available data, STGs produce about 52% of tea in the country.
FERTILIZERS
MANURE
Context: As of April 2024, the Union Minister of Fisheries, Animal Husbandry and Dairying
launched NDDB MRIDA Limited, a wholly-owned subsidiary company of the National Dairy
Development Board, to take forward manure management initiatives across the country.
What is NDDB MRIDA Limited?
 NDDB MRIDA Limited is a wholly-owned subsidiary company of the National Dairy
Development Board, established as an Unlisted Public Limited Company under the Companies
Act, 2013.
 It is a first-of-its-kind company focusing on the efficient utilization of dung by creating a
manure management value chain, which will immensely contribute to enhancing dairy
farmers' livelihoods and contribute towards the Swachh Bharat Mission and promotion of
green energy.
 It will undertake research and development on cost-effective technologies for efficient dung
management.
 Promoting the usage of dung-based manure will gradually lead to the replacement of chemical
fertilizers with organic manure, reducing India's dependency on imports.
ONE NATION ONE FERTILISER SCHEME
Context: As of April 2024, the Ministry of Chemicals and Fertilisers announced the
implementation of the One Nation One Fertiliser Scheme.
About the "One Nation One Fertiliser" scheme:
 The scheme would be implemented by introducing a "Single Brand for Fertilisers and Logo"
under the fertilizer subsidy scheme named "Pradhanmantri Bhartiya Janurvarak Pariyojna"
(PMBJP).
 It would extend to all four fertilizers – Urea, Di-Ammonium Phosphate, Muriate of Potash, and
complex NPK – with BHARAT prefixed.
 The single brand name would be BHARAT UREA, BHARAT DAP, BHARAT MOP, and BHARAT
NPK, etc., respectively, for all Fertiliser Companies, State Trading Entities (STEs), and Fertiliser
Marketing Entities (FMEs).
 Under the scheme, companies are allowed to display their name, brand, logo, and other
relevant product information only on one-third of their bag space. On the remaining two-thirds
space, the "Bharat" brand and Pradhanmantri Bharatiya Jan Urvarak Pariyojana logo must be
shown.
Central government subsidy on fertilizers:
 The fertilizer sector is a highly subsidized area wherein the maximum retail price (MRP) is
fixed for urea, and subsidy is fixed for non-nitrogenous fertilizer phosphate and potassium (P
and K).
 Nearly 80% of the cost of production of urea and P&K is paid to fertilizer manufacturers as a
central government subsidy.
 As for freight subsidy, about Rs 3,038 crore per annum for urea and Rs 3,300 crore per
annum for P&K would be paid out in the 2023-24 fiscal year.
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UREA IMPORTS
Context: As of April 2024, India aims to end urea imports from 2025 as the nation boosts its local
production capacity with the commissioning of new plants.
Urea imports in India:
 India is among the world's largest fertilizer buyers, besides China, Brazil, and the US.
 India imports four types of fertilizers: urea, diammonium phosphate (DAP), muriate of potash
(MOP), and nitrogen-phosphorous-potassium (NPK).
 India, the top importer of urea, imports about 30% of its average 35 million tonnes of annual
consumption of the crop nutrient.
 India imports urea from several countries, including Oman, Qatar, Saudi Arabia, and the
United Arab Emirates.
NANO UREA
Context: As of April 2024, state-run Rashtriya Chemicals and Fertilizers Ltd (RCF) and National
Fertilizers Ltd (NFL) plan to build five new factories to manufacture super-efficient nano-urea
under a license from IFFCO Ltd, a development that promises to ease India's mounting fertilizer
subsidy burden.
About Nano Urea:
 Nano Urea is a nanotechnology-based revolutionary agri-input that provides nitrogen to
plants.
 It is a sustainable option for farmers towards smart agriculture and combating climate
change.
 Nano urea is a patented and indigenously made liquid that contains nanoparticles of urea,
the most crucial chemical fertilizer for farmers in India.
 A single half-liter bottle of the liquid can compensate for a 45kg sack of urea that farmers
traditionally rely on.
 Nano urea (Liquid) contains 4% nanoscale nitrogen particles, which have a small size (20-
50 nm), more surface area, and a higher number of particles per unit area than
conventional urea.
POTASH FERTILIZER
Context: As of April 2024, in a significant step towards ensuring long-term fertilizer availability for
the farming community, India's fertilizer companies - Coromandel International, Chambal
Fertilizers, and Indian Potash Limited - signed an MoU with Canpotex, Canada, to supply up to 15
LMT of Potash annually for 3 years.
Reason behind this MoU:
 The Government of India has been encouraging the domestic fertilizer industry to establish
supply linkages through long-term partnerships with resource-rich nations.
 Given India's high dependence on imports of raw materials and fertilizer minerals, these
partnerships provide secured availability of fertilizers and raw materials over a period and
offer price stability in volatile market conditions.
NANO LIQUID DAP
Context: As of April 2024, the government inaugurated India's first liquid nano di-ammonia
phosphate (DAP) plant of Indian Farmers Fertiliser Cooperative Limited (IFFCO) in Ahmedabad –
Kalol.
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About the Nano Liquid DAP Plant:
 The Nano liquid DAP plant in Kalol has been set up by IFFCO at the cost of 300 crore rupees.
 The plant has been developed in tune with the Aatmanirbhar Bharat vision of Prime Minister
Narendra Modi.
 The plant will lead to a significant reduction in imports of DAP and will also bring down
logistics and warehousing costs.
 The plant will produce 5 crore bottles of Nano DAP liquid, equivalent to 25 tons of DAP.
TYPES OF AGRICULTURAL PRACTICES
ZERO TILLAGE
Context: As of April 2024, in the face of rising global challenges like climate change and water
scarcity, agriculture needs sustainable and innovative practices such as zero tillage to secure our
food supply and conserve precious water resources.
What is Zero Tillage?
 Zero tillage (also known as no-till farming and conservation tillage) is a method that refrains
from traditional ploughing and tilling the soil before sowing crops.
 Instead, it involves directly drilling seeds into untilled, moist soil, leaving the ground
undisturbed.
 The benefits of this practice are manifold, with one of the most significant being water
conservation.
REGENERATIVE AGRICULTURE
Context: As of April 2024, regenerative agriculture has been receiving much attention from all
stakeholders, as it can be effective in building the resilience of agroecosystems.
What is Regenerative Agriculture?
• Regenerative agriculture is a holistic approach to agriculture that focuses on the

interconnection of farming systems such as soil health, food quality, biodiversity
improvement, water quality, and air quality.
• Indigenous communities used it centuries ago, long before industrial agriculture
occurred.
Principles Involved:
• Minimize soil disturbance through conservation tillage

• Diversify crops to replenish nutrients and disrupt pest and disease life cycles
• Retain soil cover using cover crops
• Integrate livestock, which adds manure to the soil and serves as a source of carbon
sinks.
NATURAL FARMING
Context: As of April 2024, Zero-Budget Natural Farming has attained wide success in many states
of India, especially in the Southern states. The government is stressing this farming, calling for a
return to the basics of Indian agriculture.
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What is ZBNF?
 Zero Budget Natural Farming (ZNBF) means raising crops without using fertilizers,
pesticides, or any other external materials.
 There are four pillars of Zero Budget Natural Farming:
o Jivamrita/jeevamrutha: a mixture of fresh cow dung and aged cow urine of an
indigenous breed of cow. It provides nutrients and acts as a catalytic agent that
promotes microorganisms' activity in the soil and increases earthworm activity.
o Bijamrita/beejamrutha: a treatment used for seeds, seedlings, or any planting
material. It is effective in protecting young roots from soil and seed-borne diseases.
Add Bijamrita to the seeds of any crop: coat them, dry them well, and use them for
sowing. For leguminous seeds, just dip them quickly and let them dry.
o Acchadana – Mulching: It protects topsoil during cultivation and does not destroy it
by tilling. It promotes aeration and water retention in the soil.
o Whapasa – moisture: It is a condition where water molecules and air molecules are
present in the soil. Zero Budget Natural Farming irrigation level is reduced, and
irrigation is done only at noon and that too in alternate rows.
 Intercropping, contours and bunds, local species of earthworms, and cow dung are other
principles of Zero Budget Natural Farming.
GREEN REVOLUTION AND M.S. SWAMINATHAN

Context: As of April 2024, Mankombu Sambasivan Swaminathan, widely recognized as M.S.
Swaminathan, the renowned agricultural scientist and a pivotal figure in India's 'Green
Revolution,' peacefully passed away at the age of 100 due to age-related ailments.
Who was M.S. Swaminathan (1925-2023)?
 Mankombu Sambasivan Swaminathan (M.S. Swaminathan) is known as the Father of the
Green Revolution in India.
 Born on August 7, 1925, in Kumbakonam to M.K. Sambasivan, a surgeon, and Parvati
Thangammal, Swaminathan had his schooling there.
 His keen interest in agricultural science, coupled with his father's participation in the freedom
movement and Mahatma Gandhi's influence, inspired him to pursue higher studies in the
subject.
 The Green Revolution paved the way for a quantum jump in productivity and production of
wheat and rice through the adaptation of chemical-biological technology.
What are high-yielding varieties of crops?
 High-yielding varieties of crops (HYVs) produced a higher yield of crop per hectare compared to
traditional variants.
 These variants are produced using a combination of traditional breeding steps and
biotechnology, which includes genetic diversity.
 The resulting HYVs are usually disease-resistant and have a higher tolerance to conditions.
 IR8, a variety of rice developed by the International Rice Research Institute (IRRI) that could
produce as much as seven tonnes of rice per hectare compared to traditional seeds that
could produce only two tonnes per hectare, was one of the main HYVs grown during the Green
Revolution.
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 This "miracle rice" was first introduced in the Philippines and was produced by crossing a tall,
high-yielding strain from Indonesia called Peta with a sturdy dwarf variety from China called
Dee-Geo-woo-gen.
 Other HYVs grown during the Green Revolution in India included Kalyan Sona and Sonalika
varieties of wheat, which were considered to be of good "chapati-making" quality and had
"amber grains and good yield potential" (few varieties of Mexican dwarf wheat procured earlier
were rejected because of their red color).
SEED BALLS PLANTATION
Context: As of April 2024, the method of Seed Balls plantation is showing positive results.
About Seed balls:
 It is a ball made from clay, seeds, and compost or humus.
 Seed balls are used to replant areas where the natural flora has been destroyed.
 It is a technique of propagating plants from seeds without opening up the soil using traditional
methods like ploughing.
 Traditional methods of seeding have certain disadvantages:
o The seed is sown on top of the soil, so it may get dried out by the sun, blown away by
strong winds, washed away by rains, or eaten by birds.
 But when seed balls are used, the hard clay casing protects the seeds from excessive heat,
winds, heavy rains, and nibbling birds.
 The moisture in the clay of the seed ball helps the seeds to germinate.
 Additionally, cotton fibers or liquefied paper may be mixed into the seed ball while preparing it
to increase its strength.
AGRICULTURE FINANCING IN INDIA
SOURCES AND SCHEMES FOR AGRICULTURAL FINANCING
Context: As of April 2024, besides traditional lending, agricultural financing in India also involves
various other forms of credit support, such as crop loans, the Kisan Credit Card (KCC) scheme,
agricultural term loans, and agricultural insurance.
Source of Agricultural Finance The source of agricultural finance in India can be classified as
institutional and non-institutional sources.
 Institutional Sources: Cooperative Banks, Rural Regional Banks, Scheduled Commercial
Banks (SCBs).
 Non-Institutional Sources: Moneylenders and other informal sources.
Important Schemes
 Crop loans: Crop loans are short-term loans provided to farmers for crop cultivation. These
loans are sanctioned for a crop season, and the repayment period typically ranges from 6-12
months. The loans are provided to meet farmers' cultivation expenses, such as purchasing
seeds, fertilizers, pesticides, and other inputs.
 Kisan Credit Card (KCC) scheme: Launched in 1998, the scheme aims to provide affordable
credit to farmers for crop production, animal husbandry, and other agricultural activities. KCCs
are issued by banks and other financial institutions and are a type of revolving credit, which
means that the credit limit can be used, repaid, and used again.
 Agricultural insurance: Agricultural insurance provides protection to farmers against crop
losses due to natural calamities, such as floods, droughts, and pest attacks.
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 Pradhan Mantri Fasal Bima Yojana (PMFBY): It is a crop insurance scheme launched by the
Government of India in 2016 to provide crop insurance to farmers in case of crop failure due
to natural calamities. Under this scheme, farmers pay a nominal premium of 2% for kharif
crops, 1.5% for rabi crops, and 5% for horticulture crops, while the government pays the rest
of the premium.
 Pradhan Mantri Krishi Sinchai Yojana (PMKSY): Launched in 2015, PMKSY promotes water
conservation and efficient use of water resources in agriculture. The scheme provides
financial assistance to farmers for various activities such as micro-irrigation, water harvesting,
and watershed development. As of March 2024, the scheme had covered over 22.75 lakh
hectares with a total financial assistance of over INR 9,650 crore.
 Rashtriya Krishi Vikas Yojana (RKVY): Launched in 2007, RKVY promotes agricultural
development in India. The scheme provides financial assistance to farmers for various
activities such as crop diversification, value addition, and marketing. As of March 2024, the
scheme had covered over 18.35 lakh beneficiaries with a total financial assistance of over
INR 51,450 crore.
 Agriculture Infrastructure Fund (AIF): Launched in 2020, AIF provides financial assistance to
farmers for various infrastructure development activities such as cold storage, warehouses,
and food processing units. Under the AIF, a total amount of INR 1 lakh crore has been
allocated for the period 2020-2029. The AIF is implemented through Primary Agricultural
Credit Societies (PACS), Farmers Producers Organizations (FPOs), Self Help Groups (SHGs),
and other eligible entities.
PRIMARY AGRICULTURE CREDIT SOCIETIES (PACS)
Context: As of April 2024, the Budget has announced Rs. 2,516 crore for the computerization of
63,000 Primary Agricultural Credit Societies (PACS) over the next five years.
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ORGANIZATIONS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD (NAFED)
 NAFED is an apex organization of marketing cooperatives for agricultural produce in India,
under the Ministry of Agriculture, Government of India.
 It was founded in October 1958 to promote the trade of agricultural produce and forest
resources across the nation.
 NAFED is now one of the largest procurement as well as marketing agencies for agricultural
products in India.
 With its headquarters in New Delhi, NAFED has four regional offices at Delhi, Mumbai,
Chennai, and Kolkata, apart from 28 zonal offices in capitals of states and important cities.
 In 2008, it established the National Spot Exchange, a Commodities exchange as a joint
venture of Financial Technologies (India) Ltd. (FTIL).
NATIONAL AGRICULTURE MARKET (eNAM)
 eNAM is an online trading platform for agricultural commodities in India.
 It seeks to network the existing Agricultural Produce Market Committees (APMCs) and other
market yards to create a unified national market for agricultural commodities.
 eNAM is a "virtual" market but it has a physical market (mandi) at the back end.
Benefits of eNAM:
o The market facilitates farmers, traders, and buyers with online trading in
commodities.
o The market is helping in better price discovery and provides facilities for smooth
marketing of their produce.
o Over 90 commodities including staple food grains, vegetables, and fruits are
currently listed in its list of commodities available for trade.
o The eNAM markets are proving popular as the crops are weighed immediately and
the stock is lifted on the same day and the payments are cleared online.
AGRICULTURAL PRODUCE MARKET COMMITTEE (APMC)

 Agricultural Produce Market Committee (APMC) is a statutory market committee constituted
by a State Government under the Agricultural Produce Market Committee Act in respect of
trade in certain notified agricultural or horticultural or livestock products.
 APMCs are intended to be responsible for:
o Ensuring transparency in the pricing system and transactions taking place in the
market area;
o Providing market-led extension services to farmers;
o Ensuring payment for agricultural produce sold by farmers on the same day;
o Promoting agricultural processing including activities for value addition in agricultural
produce;
o Publicizing data on arrivals and rates of agricultural produce brought into the market
area for sale;
o Setup and promote public-private partnerships in the management of agricultural
markets.
 There are about 2,477 principal regulated markets based on geography (the APMCs) and
4,843 sub-market yards regulated by the respective APMCs in India.
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FOOD CORPORATION OF INDIA (FCI)
 The Food Corporation of India sells surplus stocks of wheat and rice under the Open Market
Sale Scheme (Domestic) at pre-determined prices through e-auction in the open market from
time to time to enhance the supply of food grains.
 This procedure is followed especially during the lean season and thereby moderates the open
market prices, especially in the deficit regions.
 FCI conducts weekly auctions for the OMSS for wheat on the platform of the National
Commodity and Derivatives Exchange Limited (NCDEX).
AGRICULTURAL AND PROCESSED FOOD PRODUCTS EXPORT DEVELOPMENT AUTHORITY (APEDA)
 The APEDA was established by the Government of India under the Agricultural and Processed
Food Products Export Development Authority Act.
 The Authority replaced the Processed Food Export Promotion Council (PFEPC).
 It functions under the Ministry of Commerce and Industry.
 The Authority has its headquarters in New Delhi.
 APEDA is mandated with the responsibility of export promotion and development of products
such as Fruits, Vegetables and their Products, Meat and Meat Products, Poultry and Poultry
Products, Floriculture and Floriculture Products, etc.
 APEDA also functions as the Secretariat to the National Accreditation Board (NAB) for the
implementation of accreditation of the Certification Bodies under the National Programme for
Organic Production (NPOP) for organic exports.
MARINE PRODUCTS EXPORT DEVELOPMENT AUTHORITY (MPEDA)
 The MPEDA was set up by an act of Parliament during 1972.
 The Act empowers MPEDA to regulate exports of marine products and take all measures
required for ensuring sustained, quality seafood exports from the country.
 MPEDA is given the authority to prescribe for itself any matters which the future might require
for protecting and augmenting the seafood exports from the country.
 It is also empowered to carry out the inspection of marine products, their raw materials, fixing
standards, specifications, and training as well as take all necessary steps for marketing
seafood overseas.
INTERNATIONAL CROPS RESEARCH INSTITUTE FOR THE SEMI-ARID TROPICS (ICRISAT)
 The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) is an
international organization that conducts agricultural research for rural development.
 Headquarters: Hyderabad, Telangana
 It was founded in 1972 by a consortium of organizations convened by the Ford and the
Rockefeller foundations.
 Its charter was signed by the FAO and the UNDP.
 Since its inception, host country India has granted a special status to ICRISAT as a UN
Organization operating in Indian territory, making it eligible for special immunities and tax
privileges.
 Management: ICRISAT is managed by a full-time Director General functioning under the overall
guidance of an international Governing Board.
 ICRISAT genebank serves as a repository for the collection of germplasm of the six mandate
crops – sorghum, pearl millet, finger millet, chickpea, pigeonpea, and groundnut; and five
small millets – foxtail millet, little millet, kodo millet, proso millet, and barnyard millet.
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NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE (NCDEX)
 NCDEX is a commodities exchange dealing primarily in agricultural commodities in India.
 The NCDEX is located in Mumbai but has offices across the country to facilitate trade.
 Exchanges like the NCDEX have also played a key role in improving Indian agricultural
practices.
 Barley, wheat, and soybeans are some of the leading agricultural commodities traded on the
NCDEX.
MULTI COMMODITY EXCHANGE (MCX)
 It was established under the Forward Markets Commission (FMC) in 2003.
 It is an online platform that enables online trading, settlement, and clearing of commodity
futures transactions.
 It acts as a platform for providing risk management (hedging).
TECHNOLOGY
40. UNIFIED PORTAL FOR AGRICULTURAL STATISTICS (UPAg PORTAL)
Context: As of April 2024, the government launched the Unified Portal for Agricultural Statistics
(UPAg Portal).
About UPAg Portal:
 The UPAg Portal is developed by the Ministry of Agriculture and Farmers' Welfare (DA &
FW).
 It is a groundbreaking move to address the complex governance challenges India's
agriculture sector is facing. This innovative platform, designed to streamline and enhance
data management in the agricultural domain, marks a significant step towards a more
efficient and responsive agricultural policy framework.
Key Features of UPAg Portal:
 Data Standardization: The portal standardizes data on prices, production, area, yield, and
trade, making it accessible in one location, eliminating the need to compile data from
multiple sources.
 Data Analysis: UPAg Portal will perform advanced analytics, offering insights such as
production trends, trade correlations, and consumption patterns, aiding policymakers in
making informed decisions.
 Granular Production Estimates: The portal will generate granular production estimates with
increased frequency, enhancing the government's ability to respond to agricultural crises
swiftly.
 Commodity Profile Reports: Commodity profile reports will be produced using algorithms,
minimizing subjectivity and providing users with comprehensive insights.
 Plug and Play: Users will have the flexibility to use the portal's data to prepare their own
reports, promoting data-driven decision-making.
E-TECHNOLOGY IN AGRICULTURE
Context: As of April 2024, digital technologies are increasingly being used in agriculture, and
farmers are becoming more informed as various measures are taken to provide them with ready
access to technology and information.
Emerging Agriculture Technologies:
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 Agriculture Sensors: These sensors can detect moisture and nitrogen levels. This information
can be used to determine when to water and fertilize rather than rely on a predetermined
schedule.
 Weather Tracking: Drones, remote sensors, and satellites gather 24/7 data on weather
patterns in and around the fields. This provides farmers with vital information on temperature,
rainfall, soil, and humidity.
 Satellite Imaging: It allows for real-time crop imagery. It lets a farmer examine crops as if they
were standing there without actually standing there. Reviewing images on a weekly basis can
save a farm a considerable amount of time and money.
 Pervasive Automation: It refers to any technology that reduces operator workload.
 Minichromosomal Technology: Using minichromosomes, agricultural geneticists can add
dozens and perhaps even hundreds of traits to a plant.
 Radio-frequency identification (RFID) Technology: RFID-based sensors provide information
that can be associated with farming yields.
 Vertical Farming: Vertical farm technology is the practice of producing food in vertically
stacked layers. Farmers in all areas can use it to make better use of available land and to
grow crops that wouldn't normally be viable in those locations.
 Blockchain in Agriculture: Blockchain technologies can track all types of information about
plants, such as seed quality, crop growth, and even generate a record of the journey of the
plant after it leaves the farm.
 Internet of Things (IoT): The buzzword in precision farming lately has been IoT. In IoT-based
smart farming, a system is built for monitoring the crop field with the help of sensors (light,
humidity, temperature, soil moisture, etc.) and automating the irrigation system.
 Drone Technology: Drones can help in the analysis of soils and drainage, crop health
assessment, and are being used in the variable rate application of liquid pesticides, fertilizers,
and herbicides.
IoT IN AGRICULTURE
 IoT is used as a smart farming solution for monitoring the crop field from anywhere.
 It involves using sensors to track soil moisture, crop health, livestock conditions, temperature,
etc.
 IoT technologies make it possible to create automated irrigation structures where water
resources can be managed efficiently.
 By collecting crop data such as moisture and temperature, IoT technologies can help
determine the right amount of water for crops every season.
CONTROLLED ENVIRONMENT AGRICULTURE (CEA)
 Controlled Environment Agriculture (CEA) is a method of cultivating plants in a fully regulated
environment.
 It is also known as 'vertical farming or indoor farming.'
 In this type of cultivation, all the plant's needs are met by artificially providing them with water,
nutrients, and light using hydroponic, aquaponic, and aeroponic techniques.
DRONES
 Unmanned Aerial Vehicles or drones are increasingly becoming useful in crop and livestock
management.
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 For example, farmers can use sensor-equipped drones to monitor plant growth, detect disease
stress, monitor field temperature, and spray pesticides or fertilizers at desired locations on the
field.
PRECISION AGRICULTURE
 The increase in the global population has led to increased food production per capita.
 However, this has also led to water shortages due to irrigation purposes.
 To combat these issues, farmers are turning towards precision agriculture as it can save them
both time and money.
GEOGRAPHIC INFORMATION SYSTEM (GIS)
 GIS in agriculture relies on technology such as drones and satellites to understand crop
position and types, fertilization level, soil status, and related information.
 With data generated from GIS remote sensing devices and software, farmers can determine
the best location for crop planting in the field and make informed decisions on how to improve
soil nutrition.
BIG DATA & ANALYTICS
 The farm is becoming a data factory, with sensors and other technology collecting thousands
of data points about everything from soil quality to humidity and crop yields.
 Big data & analytics can help farmers decide when to plant and harvest, how much water or
fertilizer to use, and how much seed they should sow.
POLICY MEASURES FOR AGTECH IN INDIA
Context: Between 2013 and 2023, the agtech landscape in India grew from less than 50 start-
ups to more than 1,500. India's government has also taken several policy steps and conducted
pilots to foster technology and innovation in the agricultural sector.
Important Policy Measures:
 Development of the "agristack": AgriStack or India Digital Ecosystem for Agriculture (IDEA) has
been under development since 2020. It aims to help the use of data in agriculture to promote
data-driven agriculture and help facilitate the shift in the markets from physical APMC
infrastructures to digital e-Markets.
 Digital Soil-Health Card: A digital soil-health-card program entails mapping soil composition
and quality at the farmer level. It could help agtech companies in India to promote precision-
farming initiatives and tailor offerings for Claude does not have internet access. Links
provided may not be accurate or up to date.
specific farmer groups.
 Direct Benefit Transfer: This initiative directly transfers subsidies for fertilizers and other
goods to the farmer. It authenticates the farmer's identity at points of sale and through
verification. It could significantly encourage the adoption of fertilizers and reduce leakages in
transportation, maintaining affordability for smallholder farmers.
 National Agriculture Market (eNAM): This pan-India electronic online trading portal connects
existing Agriculture Produce Market Committee (APMC) mandis, forming a unified national
market for agricultural commodities that ensures better prices for farmers through the
transparent auction process.
 Agriculture Accelerator Fund: The Agriculture Accelerator Fund, announced in the budget for
2023-24, aims to encourage agri-startups by young entrepreneurs in rural areas. The Fund will
aim at bringing innovative and affordable solutions for challenges faced by farmers, and will
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also bring in modern technologies to transform agricultural practices, increase productivity
and profitability.
 Digital Public Infrastructure for Agriculture: Digital public infrastructure for agriculture is to be
built as an open source, open standard and inter operable public good. This will enable
inclusive, farmer-centric solutions through relevant information services for crop planning and
health, improved access to farm inputs, credit, and insurance, help for crop estimation,
market intelligence, and support for growth of agri-tech industry and start-ups.
MISCELLANEOUS
THREE NEW COOPERATIVE SOCIETIES
Context: As of April 2024, the Union Cabinet approved the formation of three new cooperative
societies to focus on seed availability to farmers, organic farming, and exports, benefiting
farmers.
Key Highlights:
 Societies: The Cabinet approved the establishment of the National Export Society, National
Cooperative Society for Organic Products, and National Level Multi-state Seed Cooperative
Society.
 Need for the initiative: Cooperatives associated with farmers, farmers' income, and
agriculture production are an important part of rural India.
 Significance: These cooperative societies will help realise the vision of "Sahakar Se
Samriddhi" (prosperity through cooperatives), and boost rural growth and farmers' income.
What are Multi-state Cooperative societies?
 They are societies that have operations in more than one State, for instance, a farmer
producers Organisation that procures grains from farmers from multiple states.
 At present, India has more than 1,500 multi-State cooperative societies, with the highest
number being in Maharashtra.
 The MSCS Act 2002 was passed to govern such cooperatives whose members and areas of
operation are spread across more than one state.
RESTRUCTURING OF SUGAR DEVELOPMENT FUND (SDF) RULES

Context: As of April 2024, the Department of Food and Public Distribution issued guidelines for
restructuring under the Sugar Development Fund (SDF) Rules 1983.
About the Sugar Development Fund (SDF):
 The SDF is used to grant loans to sugar mills for facilitating the rehabilitation and
modernization of bagasse-based co-generation power projects, production of anhydrous
alcohol or ethanol from alcohol, conversion of existing ethanol plants into Zero Liquid
Discharge (ZLD) plants, and development of sugarcane.
 The loans are provided at a concessional rate of 2% below the prevailing bank rate.
About new guidelines:
 These guidelines are uniformly applicable for SDF loans availed by all types of concerns,
including Co-operative Societies, Private Limited Companies, and Public Limited Companies.
 The restructuring of SDF rules is aimed at facilitating the rehabilitation of financially weak but
economically viable sugar mills that have availed loans under the Sugar Development Fund
(SDF) Act, 1982.
Sugarcane pricing in India:
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Fair and Remunerative Price (FRP):
 The FRP is the minimum price that sugar mills have to pay sugarcane farmers to insulate
them from increasing input costs.
 The FRP is linked to a basic recovery rate of sugar, with a premium payable to farmers for
higher recoveries of sugar from sugarcane.
 It is determined based on recommendations given by the Commission for Agricultural Costs
and Prices (CACP), an expert body under the Ministry of Agriculture & Farmers' Welfare, and in
consultation with state governments.
SUGARCANE OUTPUT VALUE TRENDS
Context: As of April 2024, six sugarcane-producing northern Indian states saw a 42 per cent
increase in their output value between 2011 and 2020, while that of five states from the south
declined 32.4 per cent during the same period, according to the latest National Statistical Office
(NSO) report.
Latest National Statistical Office (NSO) report findings:
 The report consists of data on output value from agriculture, forestry, and fishing.
 Increased trend: The cumulative production value of sugarcane in Bihar, Haryana, Punjab,
Madhya Pradesh, Uttar Pradesh, and Uttarakhand increased from Rs 30,216 crore to Rs
42,920 crore in real terms over the decade.
 Decreasing trend: Meanwhile, the sugarcane output in the five southern states of Andhra
Pradesh, Karnataka, Telangana, Tamil Nadu, and Maharashtra declined from Rs 26,823
crore to Rs 18,119 crore in the corresponding period.
Reason for Northward shift:
 The northward shift in sugarcane production is on account of the larger irrigated area in the
region and higher State Advisory Price (SAP) over and above the Centre's Fair and
Remunerative Price (FRP) being offered in the north, especially by Uttar Pradesh.
o For example, the UP government pegged sugarcane SAP at Rs 340 per quintal last
year, whereas sugarcane farmers in Tamil Nadu, Karnataka, and Maharashtra were
only able to realise prices in the range of Rs 280-310.
 Although Maharashtra is the leading sugar producer in India, Uttar Pradesh has the highest
sugarcane output value in the country.
 Barring Karnataka, which saw a marginal increase of 0.9 per cent in the output value, other
sugarcane-producing southern states like Telangana and Maharashtra also saw their
output value decline by nearly 50 and 27 per cent, respectively.
 Data sourced from the Reserve Bank of India shows that total sugarcane production in the
five southern states has come down from 181.35 million tonnes (mt) to 130.65 mt during
the 2011-2020 period, while the production in the six northern states has increased from
161.7 mt to 222.51 mt.
SEBI BAN ON AGRI COMMODITIES TRADE

Context: As of April 2024, amid the continued suspension of derivatives trading in seven agri
commodities, farmers have launched agitation outside the office of the Securities and Exchange
Board of India (SEBI) in Mumbai.
Derivative trade in commodities:
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 Agricultural commodities like cotton, paddy, soybean, maize, wheat, chana, and mustard
seeds are traded in the commodity exchanges of the National Commodities and Derivatives
Exchange (NCDEX) and the Multi Commodity Exchange (MCX).
 Derivatives are short-term financial contracts that are bought and sold in the market.
 Profits are made in the derivatives trade by predicting the price movements of the asset that
underlies the contract. The derivatives trade can be in futures and options.
 In a futures contract, a supplier pledges to sell a certain quantity at a fixed price at a future
date.
 Also, farmers can put fixed amounts of their products, which fit the quality standards of the
exchange, to be sold at a fixed price, almost like price insurance.
 Both contracts can be exited by either the producer or the trader by paying a margin price to
the exchange.
BASIC ANIMAL HUSBANDRY STATISTICS 2023
Context: As of April 2024, the Union Minister for Fisheries, Animal Husbandry & Dairying released
the Basic Animal Husbandry Statistics 2023 (milk, egg, meat, and wool production 2022-23)
based on the Animal Integrated Sample Survey (March 2022-February 2023) during the National
Milk Day event at Guwahati.
The Main Findings of Statistics are:
 The Production of Milk, Egg, Meat, and wool in the country is estimated annually based on the
results of the Integrated Sample Survey (ISS), which is conducted across the country in three
seasons, i.e., summer (March-June), Rainy (July- October), and winter (November-February).
Milk Production:
 The total Milk production in the country is estimated at 230.58 million tonnes during 2022-
23, registering a growth of 22.81% over the past 5 years, which was 187.75 million tonnes in
2018-19.
 It was found that the highest milk-producing State during 2022-23 was Uttar Pradesh, with a
share of 15.72% of total milk production, followed by Rajasthan (14.44%), Madhya Pradesh
(8.73%), Gujarat (7.49%), and Andhra Pradesh (6.70%).
 In terms of annual growth rate (AGR), the highest AGR was recorded by Karnataka (8.76%),
followed by West Bengal (8.65%) and Uttar Pradesh (6.99%) over the previous year.
Egg Production:
 The total Egg production in the country has been estimated at 138.38 billion nos. during
2022-23, registering a growth of 33.31% over the past 5 years as compared to the estimates
of 103.80 billion nos. in 2018-19.
 The major contribution in the total Egg production comes from Andhra Pradesh, with a share
of 20.13% of total Egg production, followed by Tamil Nadu (15.58%), Telangana (12.77%),
West Bengal (9.94%), and Karnataka (6.51%).
 In terms of AGR, the highest growth rate was recorded by West Bengal (20.10%), followed by
Sikkim (18.93%) and Uttar Pradesh (12.80%).
Meat Production:
 The total Meat production in the country is estimated at 9.77 million tonnes during 2022-23,
registering a growth of 20.39% over the past 5 years as compared to the estimates of 8.11
million tonnes in 2018-19.
 The major contribution to the total meat production comes from Uttar Pradesh with a 12.20%
share, followed by West Bengal (11.93%), Maharashtra (11.50%), Andhra Pradesh (11.20%),
and Telangana (11.06%).
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 In terms of annual growth rate, the highest Annual Growth Rate (AGR) has been recorded in
Sikkim (63.08%), followed by Meghalaya (38.34%) and Goa (22.98%).
WORLD'S LARGEST GRAIN STORAGE PLAN
Context: As of April 2024, the Union Cabinet approved the constitution and empowerment of an
Inter-Ministerial Committee (IMC) for facilitation of the "world's largest grain storage plan in
cooperative sector" by convergence of various schemes of the Ministries of Agriculture and
Farmers Welfare, Consumer Affairs, Food and Public Distribution and Food Processing Industries.
Key Highlights:
 The Ministry of Cooperation is implementing a pilot project in at least 10 selected districts of
different States to ensure the timely and uniform implementation of the plan in a professional
manner.
 The committee will lay guidelines for creating infrastructure such as godowns, for agriculture and
allied purposes, at selected 'viable' Primary Agricultural Credit Societies (PACS).
 The plan will be implemented by utilizing the available outlays provided under the identified
schemes of the respective Ministries.
 Lack of agricultural storage capacity leads to wastage of food grains, and farmers are forced to
sell their crops at low prices.
 This plan will enable PACS to provide storage facilities and undertake many other activities, such
as Fair Price Shop and Custom Hiring Centres.
 Farmers could sell their crops to PACS by receiving some advance payment at the Minimum
Support Price and get the balance after the PACS sold the food grains in the market.
 Additional Information
 Crop Production: Details on major crop-producing states, largest producers, and various unique
crop varieties.
 Fertilizers: Information on manure, fertilizer schemes, urea imports, nano urea, and potash
fertilizer.
 Types of Agricultural Practices: Insights on zero tillage, regenerative agriculture, natural farming,
the Green Revolution, and seed ball plantation.
 Agriculture Financing in India: Sources and schemes for agricultural financing, primary agriculture
credit societies, and multi-state cooperative societies.
 Organizations: Roles and functions of various agricultural organizations such as NAFED, eNAM,
APMC, FCI, APEDA, MPEDA, ICRISAT, NCDEX, and MCX.
 Technology: Details on the Unified Portal for Agricultural Statistics, e-technology in agriculture, IoT,
controlled environment agriculture, drones, precision agriculture, GIS, big data & analytics, and
policy measures for agtech in India.
 Miscellaneous: Information on three new cooperative societies, restructuring of Sugar
Development Fund rules, sugarcane output value trends, SEBI ban on agri commodities trade,
Basic Animal Husbandry Statistics 2023, and the world's largest grain storage plan
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MONEY & BANKING
BAD LOANS
Context: The government is intensifying its focus on the recovery of bad loans, signaling a
potential restructuring of the National Asset Reconstruction Company Ltd (NARCL) and expediting
the admission and resolution of cases under the Insolvency and Bankruptcy Code (IBC).
What are Bad Loans?
 A bad loan is one that has not been 'serviced' for a certain period.
 Servicing a loan means paying back the interest and a small part of the principal, depending
on the agreement between the bank and borrower, so that over time, both the principal and
interest are paid back.
 In 2009, the RBI brought out norms that set out categories of Non-Performing Assets (NPAs)
and what banks must do as these bad loans age.
 According to RBI, bad loans are a problem because, with time, there is less certainty that the
loan will be paid back in full.
Indian Context:
 Gross Non-Performing Assets (GNPAs) of banks decreased to 5.8% in March 2024 from 7.4%
in March 2023, as per RBI's Financial Stability Report.
 The Net Non-Performing Assets (NNPAs) ratio declined to 1.7% in March 2024 from 2.2% in
March 2023.
 The Provisioning Coverage Ratio (PCR) improved to 73.1% in March 2024 from 70.9% in
March 2023.
 The RBI has projected GNPAs to decline further to 5.2% by March 2025 under the baseline
scenario.
Global Context:
 The global average of NPAs was 3.7% in 2023, as per the World Bank's Global Financial
Development Report 2024.
 Among major economies, NPAs were highest in Greece (35.1%), followed by Cyprus (17.3%),
and Italy (8.1%) in 2023.
 The United States had an NPA ratio of 1.1%, while Japan's stood at 1.2% in 2023.
 The COVID-19 pandemic has led to a rise in NPAs globally, with the World Bank estimating
that the pandemic could push an additional 150 million people into extreme poverty by 2024.
What is a Non-Performing Asset?
 NPAs are loans or advances that are in default or arrears.
 These are loans where principal or interest amounts are late or have not been paid.
When is a loan classified as NPA?
 Non-Performing Assets are essentially Non-Performing Loans.
 In India, the timeline for classifying an asset as NPA is 180 days, as against 45 to 90 days
under international norms.
Context: The National Asset Reconstruction Company Ltd (NARCL) acquired its first stressed
asset — Jaypee Infratech — from lenders.
 NARCL acquired its exposure aggregating about Rs 9,200 crores at a 55% haircut.
About Asset Reconstruction Company (ARC)
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 An ARC is a special type of financial institution that buys the debtors of the bank at a mutually
agreed value and attempts to recover the debts or associated securities by itself.
 ARCs are registered under the RBI and regulated under the Securitisation and Reconstruction
of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act, 2002).
 ARCs take over a portion of the debts of the bank that qualify to be recognized as Non-
Performing Assets.
 Thus, ARCs are engaged in the business of asset reconstruction or securitization or both.
Indian Context:
 As of March 2024, there were 28 ARCs registered with the RBI.
 The total assets under management (AUM) of ARCs stood at Rs 1.1 lakh crore as of March
2024, as per data from the Association of ARCs in India.
 NARCL, incorporated in July 2021, has been set up by banks to aggregate and consolidate
stressed assets for their subsequent resolution.
 The government has approved a Rs 30,600 crore guarantee for security receipts issued by
NARCL for acquiring stressed loans.
Global Context:
 Globally, the ARC market is estimated to be worth $1.5 trillion as of 2023, as per a report by
Allied Market Research.
 The US has the largest ARC market, followed by Europe and Asia-Pacific.
 In China, the government has set up several provincial ARCs to manage the country's bad
loans, which stood at $1.5 trillion in 2023.
 The COVID-19 pandemic has led to a surge in NPAs globally, increasing the demand for ARCs
to manage these stressed assets.
RBI SURPLUS TRANSFER
Context: Recent headlines in the financial sector have put the spotlight on the Reserve Bank of
India's (RBI) move to transfer Rs 87,416 crore for the accounting year 2022-23 to the central
government.
What is RBI's Surplus Transfer?
 RBI is not a commercial organization like banks and other companies owned or controlled
by the government to pay a dividend to the owner out of the profit generated.
 RBI transfers the surplus — excess of income over expenditure — to the government.
 Under Section 47 of the RBI Act, "after making provision for bad and doubtful debts,
depreciation in assets, contributions to staff and superannuation funds and for all other
matters for which provision is to be made by or under this Act or which are usually provided
for by bankers, the balance of the profits shall be paid to the Central government".
 This is done early by the Central Board.
Indian Context:
 RBI transferred Rs 87,416 crore as surplus to the government for the accounting year 2022-
23.
 This is 64.6% lower than the surplus transfer of Rs 1.47 lakh crore in 2021-22.
 The lower surplus transfer is due to the RBI's increased expenditure on printing currency notes
and paying interest on the reverse repo window.
 The RBI's Contingency Fund stood at Rs 3.14 lakh crore as of March 2023.
Global Context:
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 Central banks across the world transfer their surplus to their respective governments.
 The US Federal Reserve transferred $54.9 billion to the US Treasury in 2023.
 The European Central Bank (ECB) transferred €1.43 billion to the national central banks of
the Eurozone in 2023.
 The Bank of Japan (BoJ) transferred ¥481.7 billion to the Japanese government in 2023.
 The COVID-19 pandemic has led to increased expenditure by central banks globally, reducing
their surplus transfers to governments.
RBI'S LIQUIDITY ADJUSTMENT TOOLS
Context: The Reserve Bank of India (RBI) has two powerful liquidity adjustment tools: the Standing
Deposit Facility (SDF) and the Marginal Standing Facility (MSF).
About Liquidity Adjustment Facility (LAF)
 The LAF came into existence as a result of the Narasimham Committee on Banking Sector
Reforms in 1998.
 LAF allows banks to raise finance through repos or repurchase agreements or to lend money to
the apex bank through reverse repo agreements. The measure ensures financial market
stability.
Standing Deposit Facility (SDF)
 SDF is an overnight facility that enables banks to transfer excess liquidity and earn a higher
interest rate.
 This is a better and more efficient method compared to the reverse repo method where
government securities are sold and then re-purchased to absorb liquidity.
Marginal Standing Facility (MSF)
 Commercial banks can borrow money for a short term through the MSF route to mitigate their
liquidity woes.
 Taking this route, banks borrow funds from the RBI for a day by offering dated government
securities.
Differences between SDF and Reverse Repo Rate
Reverse Repo Rate SDF
Objective: The central bank employs reverse repo rate and SDF will allow banks to store
SDF to remove excess liquidity from the system. surplus liquidity with the Reserve
Bank at their discretion.
In contrast to SDF, reverse repo operations require the RBI
to deposit collateral in the form of government assets in
order to borrow money from commercial banks.
Under the current liquidity system, the Reserve Bank has
discretion over liquidity absorption through reverse repos,
open market operations, and the cash reserve ratio.
Indian Context:
 The SDF rate stands at 6.25%, while the MSF rate is at 6.75% as of April 2024.
 The reverse repo rate under the LAF is at 3.35%, and the repo rate is at 6.50%.
 Banks parked Rs 5.5 lakh crore under the SDF as of April 24, 2024.
 The RBI injected liquidity of Rs 50,000 crore through the MSF window in April 2024.
Global Context:
 Central banks globally use similar tools to manage liquidity in their respective economies.
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 The US Federal Reserve uses the overnight reverse repurchase agreement (ON RRP) facility and
the term deposit facility (TDF) to manage liquidity.
 The European Central Bank (ECB) uses the deposit facility and the marginal lending facility to
steer short-term interest rates.
 The Bank of Japan (BoJ) uses the complementary deposit facility and the loan support program
to provide liquidity to banks.
 The COVID-19 pandemic has led to increased liquidity injection by central banks globally to
support their economies.
Other important rates
 Repo rate: The interest rate that the RBI charges when commercial banks borrow money
from it.
 Reverse repo rate: The interest rate that the RBI pays commercial banks when they park their
excess cash with the central bank.
 Base rate: The lending rate based on the total cost of funds of the banks; the minimum
interest rate at which a bank can lend, except for loans to its own employees, retired
employees, and against the bank's own deposits.
 PLR: Prime Lending Rate (PLR) is the internal benchmark rate used for setting the interest
rate on floating rate loans sanctioned by Non-Banking Financial Companies (NBFC) and
Housing Finance Companies (HFC).
o PLR rate is calculated based on the average cost of funds.
o NBFC and HFC generally price their loans at a discount on their existing PLR.
 Treasury bills or T-bills: They are money market instruments, short-term debt instruments
issued by the Government of India.
Indian Context:
 The repo rate stands at 6.50%, and the reverse repo rate at 3.35% as of April 2024.
 The base rate for major banks ranges from 7.25% to 8.50% as of April 2024.
 The PLR for major NBFCs and HFCs ranges from 12% to 18% as of April 2024.
 The government issued treasury bills worth Rs 3.5 lakh crore in 2023-24.
Global Context:
 The US Federal Reserve's federal funds rate stands at 5.00-5.25% as of April 2024.
 The European Central Bank's (ECB) deposit facility rate is at 3.00%, and the marginal lending
facility rate is at 3.25% as of April 2024.
 The Bank of Japan's (BoJ) short-term policy interest rate is at -0.1%, and the 10-year Japanese
government bond yield target is around 0% as of April 2024.
 The Bank of England's (BoE) bank rate is at 4.25% as of April 2024.
REPO RATE
Context: The Reserve Bank of India (RBI) keeps the repo rate unchanged at 6.5% in 2023.
What is Repo Rate?
 Repo stands for "Re Purchase Option". Repo Rate is the rate at which the central bank (Reserve
Bank of India) lends to other banks by buying the securities with an agreement that the bank
will buy back on a certain date.
 Repo lending is a short-term lending option to meet the liquidity requirements of commercial
banks.
 Repo rate is the rate at which the Reserve Bank of India (RBI) lends to other banks.
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 It is a part of the Liquidity Adjustment Facility (LAF) of the RBI.
Components of Repo Rate:
 Preventing "squeeze" in the economy - The central bank adjusts the Repo rate in response to
inflation. As a result, it seeks to govern the economy by keeping inflation under control.
 Hedging and Leverage - The RBI tries to hedge and leverage by purchasing securities and bonds
from banks and providing cash in exchange for collateral deposited.
 Short-Term Borrowing — The RBI lends money for a short length of time, up to an overnight
period, after which banks purchase back their deposited securities at a predetermined price.
 Collateral and Securities — The RBI takes gold, bonds, and other forms of collateral.
 Cash Reserve or Liquidity: Banks borrow money from the Reserve Bank of India (RBI) to preserve
liquidity or cash reserves as a precautionary measure.
Differences between Bank Rate and Repo Rate
Parameter Bank Rate Repo Rate
Meaning The Bank Rate is applied to loans Repo Rate is applied to the central bank's
made by the central bank to repurchase of securities sold by
commercial banks. commercial banks.
Collateral No collateral is required Securities, bonds, and agreements are
given as collateral
Impact Directly impacts customers as it The Repo rate is handled by banks and
affects long-term lending. doesn't impact customers directly.
Rate Higher than Repo due to no collateral Lower than Bank Rate as there is
and long-term nature. collateral and a repurchase obligation.
Duration of Bank rate caters to the long-term Repo Rate focuses on short-term
loan requirements of commercial banks. financial lending.
Indian Context:
 The repo rate stands at 6.50%, unchanged since May 2023.
 The reverse repo rate stands at 3.35%, unchanged since May 2020.
 The bank rate stands at 6.75%, unchanged since May 2023.
 The RBI has maintained an accommodative stance to support economic growth while keeping
inflation under control.
Global Context:
 The US Federal Reserve's federal funds rate stands at 5.00-5.25% as of April 2024.
 The European Central Bank's (ECB) main refinancing rate is at 4.00%, and the deposit facility
rate is at 3.00% as of April 2024.
 The Bank of Japan's (BoJ) short-term policy interest rate is at -0.1%, and the 10-year Japanese
government bond yield target is around 0% as of April 2024.
 The Bank of England's (BoE) bank rate is at 4.25% as of April 2024.
 Central banks globally have been raising interest rates to combat inflationary pressures while
balancing the need to support economic recovery in the aftermath of the COVID-19 pandemic.
FLOATING TO FIXED RATE REGIME
Context: The Reserve Bank of India (RBI) asked all regulated entities (REs), including banks and
NBFCs, to give personal loan borrowers an option to switch over from a floating rate to a fixed rate
regime at the time of resetting interest rates.
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About the Floating to Fixed Rate Regime
 When a customer takes a loan, the interest rate reset clause in the loan agreement allows
the lender to review the interest rate after a certain period, as per the occurrence of a
scheduled reset date of the loan.
 The reset rate is the new interest rate that a borrower must pay effective from the scheduled
reset date.
 EMI of a floating rate loan changes with periodical changes in reset interest rates.
 These rates and the calculation are not uniform for all the banks as the cost of funds differs
from banks.
Indian Context:
 The RBI has mandated all REs to provide the option to switch from floating to fixed interest rates
for personal loans.
 This move aims to provide transparency and protect borrowers from sudden interest rate
fluctuations.
 As of March 2024, personal loans outstanding in India stood at Rs 35 lakh crore, growing at
17% year-on-year.
 The share of floating rate loans in total personal loans is estimated to be around 40% as of
March 2024.
Global Context:
 In the US, the Adjustable Rate Mortgage (ARM) is a common floating rate home loan, where the
interest rate adjusts periodically based on a benchmark index.
 In the UK, the Standard Variable Rate (SVR) mortgage is a floating rate home loan, where the
interest rate can change at the lender's discretion.
 In Australia, the variable rate home loan is the most common type, where the interest rate can
change based on the lender's funding costs and market conditions.
 Globally, the share of floating rate loans in total loans varies across countries, with some
countries like the UK and Australia having a higher share compared to others like the US and
Germany.
LIBOR
Context: The Reserve Bank of India (RBI) has asked banks and financial institutions to adopt a
widely accepted Alternative Reference Rate, such as the Secured Overnight Financing Rate (SOFR),
to complete the transition from the scandal-hit London Interbank Offered Rate (LIBOR) and Mumbai
Interbank Forward Outright Rate (MIFOR).
About LIBOR
•LIBOR was being used as the benchmark rate for raising funds abroad.
•It was a key benchmark for setting the interest rates charged on adjustable-rate loans, mortgages, and
corporate debt.
Why is LIBOR being retired?
•LIBOR is being phased out because of the role it played in worsening the 2008 Financial Crisis, as well as
scandals involving LIBOR manipulation among rate-setting banks.
•In 2012, investigations into the way LIBOR was set uncovered a widespread, long-lasting scheme among
multiple banks to manipulate rates for profit.
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What's the alternative?
 In place of LIBOR, the Secured Overnight Financing Rate (SOFR) serves as the benchmark
interest rate for loans and derivatives denominated in dollars.
 New transactions are now predominantly undertaken using SOFR and the Modified Mumbai
Interbank Forward Outright Rate (MMIFOR).
 SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury
securities.
Advantages of SOFR
 Accuracy: Unlike LIBOR, SOFR is based on actual transactions — namely, overnight
transactions in the Treasury repo market. Thus, SOFR is a more accurate means of
measuring the cost of borrowing money. Because these transactions can be observed by
anybody, it's also less easily manipulated.
 Risk: SOFR is based on overnight Treasury transactions, so it's considered a risk-free rate.
 Utilization:
o Finalization of loan cost: Financial institutions utilize SOFR as a benchmark when
determining the cost of consumer and business loans.
o In addition, it is essential in trading derivatives, especially interest-rate swaps, which
businesses and other parties use to manage interest-rate risk and speculate on
changes in borrowing costs.
Indian Context:
 The RBI has directed banks and financial institutions to transition from LIBOR to alternative
reference rates by June 30, 2023.
 The Indian Benchmark Rate (IBR), based on the weighted average of call money, certificate of
deposit, and treasury bills rates, has been proposed as an alternative to MIFOR.
 The Financial Benchmarks India Pvt Ltd (FBIL) has started publishing the IBR since May 2022.
 As of March 2024, around 70% of the LIBOR-linked contracts have been transitioned to
alternative reference rates in India.
Global Context:
 Globally, LIBOR is being phased out by the end of 2023, with different countries adopting
alternative reference rates.
 In the US, SOFR has been adopted as the alternative reference rate for dollar-denominated
contracts.
 In the UK, the Sterling Overnight Index Average (SONIA) has been adopted as the alternative
reference rate for sterling-denominated contracts.
 In the Eurozone, the Euro Short-Term Rate (€STR) has been adopted as the alternative
reference rate for euro-denominated contracts.
 The transition from LIBOR to alternative reference rates is a significant global financial market
reform, with implications for trillions of dollars worth of financial contracts.
NON-FUNGIBLE TOKEN (NFT)
Context: As NFTs gain traction, regulators worldwide are working to establish frameworks to protect
investors and address potential risks.
What is an NFT?
 Unlike a fungible asset that can be readily interchanged - like money, a non-fungible token or
NFT is a unique digital asset that cannot be interchanged.
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 NFTs can be anything digital like drawings, music, etc., but a lot of the current excitement is
around using the tech to sell digital art.
 NFTs can help artwork in getting "tokenized", thus creating a digital certificate of ownership that
can be bought and sold.
 NFTs may also contain smart contracts that can give the artist, for example, a cut of any future
sale of the token.
 NFTs are backed by Blockchain technology.
 For the uninitiated, Blockchain is a distributed ledger where all transactions are recorded. It is
like your bank passbook, except all your transactions are transparent and can be seen by
anyone and cannot be changed or modified once recorded.
 However, NFTs do not prevent people from copying digital art.
 Most NFTs are part of the Ethereum blockchain. However, other blockchains can have their own
versions of NFTs.
Indian Context:
 The Indian NFT market is estimated to grow at a CAGR of 50% from 2022 to 2027, reaching
$1.2 billion by 2027, as per a report by TechSci Research.
 The number of NFT buyers in India is estimated to reach 2 million by 2027, up from 0.5 million
in 2022.
 The entertainment and gaming sectors are expected to drive the growth of NFTs in India, with
Bollywood celebrities and cricket stars launching their own NFT collections.
 The Indian government is exploring the regulation of NFTs, with the Finance Ministry setting up
a committee to study the policy and legal framework for digital assets, including NFTs.
Global Context:
 The global NFT market is estimated to reach $80 billion by 2027, growing at a CAGR of 40%
from 2022 to 2027, as per a report by MarketsandMarkets.
 The US is the largest NFT market, followed by China and the UK, as of 2022.
 The art and collectibles segment is expected to dominate the global NFT market, followed by
the gaming and sports segments.
 Major tech companies like Facebook, Twitter, and Reddit have launched their own NFT
marketplaces and integrations.
 Regulators in the US, EU, and other countries are considering the legal and tax implications of
NFTs, with some countries like Singapore and Malta creating favorable regulatory environments
for digital assets.
Potential risks and challenges associated with NFTs

 Speculation and volatility: The prices of NFTs can be highly speculative and volatile, with some NFTs
selling for millions of dollars and others losing value quickly.
 Fraud and scams: The NFT market has seen instances of fraud and scams, such as fake or
plagiarized NFTs being sold, or buyers being misled about the value or authenticity of NFTs.
 Environmental impact: The energy consumption associated with creating and trading NFTs on
blockchain networks like Ethereum has raised concerns about the environmental impact of NFTs.
 Intellectual property rights: The ownership and intellectual property rights associated with NFTs can
be complex and unclear, leading to potential disputes and legal challenges.
 Regulatory uncertainty: The regulatory landscape for NFTs is still evolving, with different countries
taking different approaches to the taxation, legal status, and consumer protection aspects of NFTs.
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RBI TO BRING DIGITAL LOAN AGGREGATORS UNDER REGULATION
Context: The Reserve Bank of India (RBI) has decided to bring digital loan aggregators under a
comprehensive regulatory framework to increase transparency in their operations.
Need for Regulation
 Digital lenders have been accused of charging high interest rates and using illegal recovery
measures.
 There are hundreds of unauthorized digital lenders operating outside the RBI's purview.
What is an Account Aggregator (AA)?
 AA is a framework that facilitates the distribution of financial information in real-time and blindly
(AA data flow encrypted) between regulated entities (Banks and NBFCs).
 The RBI (Reserve Bank of India) in 2016 approved the AA as a new component of NBFC (Non-
Banking Financial Companies), whose main responsibility is to facilitate the transfer of user
financial data with their explicit consent.
 AAs enable data flow between financial information providers (FIPs) and financial information
users (FIUs).
 The structure of AA is based on the Data Empowerment and Protection Architecture (DEPA)
framework.
o DEPA is an organization that allows users to securely access their data and share it with
third-party users.
Indian Context:
 As of March 2024, there are 12 licensed AAs in India, with 5 more in the pipeline.
 The number of users who have signed up for AA services has reached 10 million as of March
2024, up from 1 million in March 2023.
 The volume of data shared through AAs has reached 100 million transactions per month as of
March 2024, up from 10 million in March 2023.
 The RBI has issued detailed guidelines for digital lending, including a cap on the interest rates
charged by digital lenders and a ban on the use of coercive recovery practices.
Global Context:
 The concept of AA is gaining traction globally, with countries like the UK, Australia, and
Singapore exploring similar frameworks.
 In the UK, the Open Banking initiative, launched in 2018, allows customers to share their
financial data with third-party providers securely.
 In Australia, the Consumer Data Right (CDR) framework, launched in 2020, allows customers
to access and share their data across sectors like banking, energy, and telecommunications.
 In Singapore, the Personal Data Protection Commission (PDPC) has issued guidelines for the
responsible use of AI and data analytics, including the need for transparency and consent in
data sharing.
 The growth of digital lending has raised concerns about consumer protection and data privacy
globally, with regulators in various countries considering new frameworks to address these
challenges.
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INDIA, SINGAPORE LAUNCH UPI-PAYNOW LINKAGE
Context: India and Singapore have announced the linking of their payment apps, namely UPI and
PayNow, allowing instantaneous and low-cost money transfers between the two countries.
 The linkage is set to ease financial transactions for the Indian diaspora.
About the move Which nations have adopted UPI?
• Background: UPI payments through • Non-resident Indians (NRIs) from 10

QR codes are already taking place in countries can use UPI to send and
Singapore, though at a limited receive money if their domestic bank
number of outlets. accounts are linked to their phone
• The announcement was made via a numbers abroad.
virtual address by both India and • The list of countries includes
Singapore's Prime Ministers. Singapore, Australia, Canada, Hong
• Aim: This move will aid the Indian Kong, Oman, Qatar, US, Saudi Arabia,
diaspora in Singapore, especially United Arab Emirates, and the United
students and migrant workers, by Kingdom.
allowing instantaneous and low-cost
money transfers between the two
countries.
Indian Context:
 As of March 2024, UPI has processed 10 billion transactions worth Rs 20 lakh crore, up from 5
billion transactions worth Rs 10 lakh crore in March 2023.
 The number of UPI users has reached 500 million as of March 2024, up from 250 million in
March 2023.
 The average value per UPI transaction has increased to Rs 2,000 as of March 2024, up from
Rs 1,500 in March 2023.
 The UPI-PayNow linkage is expected to process $1 billion worth of transactions in the first year
of its launch.
Global Context:
 The launch of the UPI-PayNow linkage is a significant milestone in the global adoption of real-
time payment systems.
 Similar cross-border payment linkages are being explored between other countries, such as the
US and Mexico, and the UK and Switzerland.
 The Bank for International Settlements (BIS) has launched a project to explore the use of central
bank digital currencies (CBDCs) for cross-border payments, with the participation of central
banks from China, Hong Kong, Thailand, and the UAE.
 The COVID-19 pandemic has accelerated the adoption of digital payments globally, with
contactless payments and QR code-based payments gaining popularity in many countries.
 The global real-time payments market is expected to grow at a CAGR of 30% from 2022 to 2027,
reaching $50 billion by 2027, as per a report by MarketsandMarkets.
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FRANCE FIRST EUROPEAN COUNTRY TO ACCEPT INDIA'S UPI
Context: NIPL in partnership with Lyra, a French leader in securing e-commerce and proximity
payments, has announced the acceptance of the Unified Payments Interface (UPI) payment
mechanism in France starting with the iconic Eiffel Tower.
What is UPI?
 The UPI is India's mobile-based payment system.
 It is an instant payment system that allows people to make round-the-clock payments through
a virtual payment address created by the customer.
 It was developed by the National Payments Corporation of India (NPCI) in 2016 and is regulated
by the Reserve Bank of India (RBI).
Indian Context:
 As of March 2024, UPI has processed 10 billion transactions worth Rs 20 lakh crore, up from 5
billion transactions worth Rs 10 lakh crore in March 2023.
 The number of UPI users has reached 500 million as of March 2024, up from 250 million in
March 2023.
 The average value per UPI transaction has increased to Rs 2,000 as of March 2024, up from
Rs 1,500 in March 2023.
 The acceptance of UPI in France is expected to benefit the 5 lakh Indian tourists who visit the
country every year.
Global Context:
 The acceptance of UPI in France marks a significant milestone in the global expansion of the
payment system.
 UPI is now accepted in 10 countries, including Singapore, UAE, and the UK, with plans to expand
to more countries in the coming years.
 The NPCI has set a target of achieving 1 billion UPI transactions per day by 2027, with a
significant portion coming from international transactions.
 The global mobile payments market is expected to grow at a CAGR of 25% from 2022 to 2027,
reaching $8 trillion by 2027, as per a report by Allied Market Research.
 Major tech companies like Google, Amazon, and Facebook have launched their own mobile
payment systems, competing with traditional payment networks like Visa and Mastercard.
PANCHAYATS TO GET UPI-ENABLED DIGITAL TRANSACTIONS FACILITY
Context: As per the letter issued by the Panchayati Raj Ministry, all Panchayats across the country
will mandatorily use digital payments for development work and revenue collection and become
fully UPI-enabled.
What is the need?
 Universal coverage of digital payments: Nearly 98% of panchayats have already begun using
UPI-based payments.
o Payments worth approximately Rs 1.5 lakh crore have been processed through the
Public Financial Management System (PFMS).
o Contribution of rural and peri-urban areas in digital transactions is around 50%.
 The government has planned to create a centralized dashboard for monitoring transactions
in real-time of digital transactions in Panchayats.
 Significance: It will help in checking corruption in Panchayats.
Government steps were taken in this direction:

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 Digital India Campaign: Digital India is a campaign launched in 2015. The motto of the
campaign is "Power to Empower". The initiative includes plans to connect rural areas of India
within the circumference of high-speed internet networks.
 e-Panchayat Mission Mode Project (MMP): Under the Digital India Programme, the Ministry is
implementing e-Panchayat MMP with the aim to transform the functioning of Panchayati Raj
Institutions (PRIs) by making them more transparent, accountable, and effective.
 eGramSwaraj: Building on the achievements in the past, the Ministry launched eGramSwaraj, a
work-based comprehensive application for PRIs under the e-Panchayat Mission Mode Project
on 24th April 2020.
 Pradhan Mantri Gramin Digital Saksharta Abhiyan: The Scheme is aimed at empowering the
citizens in rural areas by training them to operate computers or digital access devices.
 SAMARTH Campaign: Under the SAMARTH Campaign, the government seeks to foster the
adoption of digital transactions in 50,000 Gram Panchayats across India.
Indian Context:
 As of March 2024, 98% of the 2.5 lakh gram panchayats in India have adopted digital payments,
up from 90% in March 2023.
 The value of digital transactions in gram panchayats has reached Rs 2 lakh crore in FY24, up
from Rs 1.5 lakh crore in FY23.
 The number of rural digital payment users has reached 500 million as of March 2024, up from
300 million in March 2023.
 The government has set a target of achieving 100% digital payments in all gram panchayats by
2025, with a focus on promoting UPI-based payments.
Global Context:
 The adoption of digital payments in rural areas is a global trend, driven by the increasing
penetration of mobile phones and internet connectivity.
 In China, the digital payment market is dominated by Alipay and WeChat Pay, which have a
significant presence in rural areas, with over 1 billion users combined.
 In Africa, mobile money services like M-Pesa have revolutionized financial inclusion in rural
areas, with over 50 million users across the continent.
 In Latin America, the use of digital payments in rural areas is growing, driven by the adoption of
mobile wallets and QR code-based payments, with countries like Brazil and Mexico leading the
way.
 The COVID-19 pandemic has accelerated the adoption of digital payments in rural areas
globally, as more people turn to contactless payments for safety and convenience.
SCHEDULED BANKS
Context: In a recent notification, the Reserve Bank of India (RBI) has announced the addition of
"NongHyup Bank" to the Second Schedule of the RBI Act, 1934.
What are Scheduled Banks?
 Any bank which is listed in the 2nd schedule of the Reserve Bank of India Act, 1934 is
considered a scheduled bank.
 "Banks which have been included in the second schedule of the RBI Act, 1934". The banks
included in this category should fulfill two conditions:
o The paid-up capital and collected fund of the bank should not be less than Rs. 5 lac.
o Any activity of the bank will not adversely affect the interests of the depositors.
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 The Schedule consists of those banks which satisfy various parameters, criteria under clause
42 of this act.
 The list includes:
o The State Bank of India and its subsidiaries (like State Bank of Travancore)
o All nationalized banks (Bank of Baroda, Bank of India, etc.)
o Regional rural banks (RRBs)
o Foreign banks (HSBC Holdings Plc, Citibank NA)
o Some co-operative banks
 These also include private sector banks, both classified as old (Karur Vysya Bank) and new
(HDFC Bank Ltd).
 To qualify as a scheduled bank, the paid-up capital and collected funds of the bank must not
be less than Rs 5 lakh.
 Scheduled banks are eligible for loans from the Reserve Bank of India at the bank rate and are
given membership to clearing houses.
 Scheduled Commercial Banks in India are categorized into 5 different groups according to their
ownership/nature of operation. These bank groups are:
o State Bank of India
o Nationalized Banks
o Regional Rural Banks
o Foreign Banks
o Other Indian Scheduled Commercial Banks (in the private sector).
Indian Context:
 As of March 2024, there are 148 scheduled commercial banks in India, including 12 public
sector banks, 22 private sector banks, 44 foreign banks, 43 regional rural banks, and 27 small
finance banks.
 The total deposits of scheduled commercial banks have reached Rs 200 lakh crore as of March
2024, up from Rs 175 lakh crore in March 2023.
 The total advances of scheduled commercial banks have reached Rs 150 lakh crore as of March
2024, up from Rs 130 lakh crore in March 2023.
 The gross non-performing assets (NPAs) of scheduled commercial banks have decreased to 5%
as of March 2024, down from 7% in March 2023, reflecting an improvement in asset quality.
Global Context:
 Globally, the banking sector is undergoing a transformation, driven by the adoption of digital
technologies and the entry of new players like fintech companies and neo-banks.
 In the US, the banking sector is highly concentrated, with the top 5 banks (JPMorgan Chase,
Bank of America, Wells Fargo, Citigroup, and U.S. Bancorp) holding over 40% of total deposits
as of 2023.
 In Europe, the banking sector is more fragmented, with a larger number of smaller banks and
a greater emphasis on regional and community banking.
 In China, the banking sector is dominated by state-owned banks, with the top 4 banks (Industrial
and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank
of China) holding over 50% of total assets as of 2023.
 The COVID-19 pandemic has accelerated the digital transformation of the banking sector
globally, with more banks adopting cloud computing, artificial intelligence, and blockchain
technologies to improve efficiency and customer experience.
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RBI INNOVATION HUB (RBIH)
Context: In order to promote and facilitate an environment that accelerates innovation across the
financial sector, the Reserve Bank Innovation Hub (RBIH) has been set up as a wholly-owned
subsidiary of the RBI.
What is RBIH?
 The RBI has set up the RBIH as a Section 8 company under the Companies Act, 2013, with
an initial capital contribution of Rs 100 crore to encourage and nurture financial innovation
sustainably through an institutional set-up.
 Initial capital contribution: Rs 100 crore
 Objective: To create an ecosystem that focuses on promoting access to financial services
and products for the low-income population in the country.
 The Hub would bring convergence among various stakeholders (BFSI Sector, Start-up
ecosystem, Regulators, and Academia) in the financial innovation space.
 This is in line with the objective behind the establishment of RBIH i.e., to bring world-class
innovation to the financial sector in India, coupled with the underlying theme of financial
inclusion.
Indian Context:
 As of March 2024, RBIH has supported 50 fintech startups through its accelerator programs,
up from 20 in March 2023.
 RBIH has launched a regulatory sandbox for fintech startups to test their products and services
in a controlled environment, with 20 startups selected for the first cohort in 2023.
 RBIH has collaborated with global innovation hubs like the Singapore Fintech Festival and the
UK Fintech Week to promote cross-border collaboration and knowledge sharing.
 RBIH has launched a fintech challenge to identify and support innovative solutions for financial
inclusion, with a focus on rural and semi-urban areas.
Global Context:
 Globally, central banks and financial regulators are setting up innovation hubs and regulatory
sandboxes to promote fintech innovation and collaboration.
 The Bank for International Settlements (BIS) has set up an Innovation Hub to foster international
collaboration on innovative financial technology within the central banking community.
 The Monetary Authority of Singapore (MAS) has set up a Fintech and Innovation Group to
promote fintech innovation and collaboration, with a focus on areas like blockchain, AI, and
cybersecurity.
 The UK Financial Conduct Authority (FCA) has set up a Regulatory Sandbox to allow fintech
startups to test their products and services in a controlled environment, with over 100 startups
supported since its launch in 2016.
 The COVID-19 pandemic has accelerated the adoption of fintech globally, with more consumers
turning to digital financial services for convenience and safety, and more businesses adopting
digital payments and lending solutions to improve efficiency and reach new customers.
DIGITAL BANKING UNITS (DBU)
Context: The Reserve Bank of India (RBI) recently laid down norms to allow commercial banks to
open digital banking units (DBU) while mandating minimum products and services that must be
offered in these units.
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About Digital Banking Units (DBU):
 A digital banking unit (DBU) is a specialized business unit of a bank that houses certain
minimum digital banking products and services.
 A bank can offer specialized digital products at any time all year from these units and also
provide existing financial services products.
 The aim of DBU is to enable customers to have cost-effective and convenient access and
enhanced digital experience of such products and services in "an efficient, paperless,
secured and connected environment with most services being available in self-service mode
at any time, all year round."
Indian Context:
 As of March 2024, 75 DBUs have been set up by public sector banks, private sector banks, and
foreign banks in India, up from 25 in March 2023.
 The DBUs have onboarded 1 million customers as of March 2024, with a total business of Rs
10,000 crore.
 The RBI has issued guidelines for the operation of DBUs, including the minimum products and
services to be offered, the eligibility criteria for banks to set up DBUs, and the security and
customer protection measures to be put in place.
 The government has set a target of setting up 500 DBUs by 2025, with a focus on improving
financial inclusion and digital banking adoption in rural and semi-urban areas.
Global Context:
 Globally, digital banking is growing rapidly, driven by the increasing adoption of mobile and
internet banking, and the entry of new players like neo-banks and fintech companies.
 In the US, digital banking adoption has reached 75% of the population as of 2023, with mobile
banking being the most popular channel.
 In Europe, digital banking adoption varies across countries, with the Nordic countries leading
the way with adoption rates of over 90%, while countries like Germany and Italy have lower
adoption rates of around 60%.
 In China, digital banking is dominated by the big tech companies like Alibaba and Tencent, with
their mobile payment and banking apps like Alipay and WeChat Pay having over 1 billion users
each.
 The COVID-19 pandemic has accelerated the adoption of digital banking globally, with more
consumers turning to online and mobile banking for convenience and safety, and more banks
investing in digital transformation to improve efficiency and customer experience.
PUBLIC TECH PLATFORM FOR FRICTIONLESS CREDIT
Context: The Reserve Bank of India (RBI) has embarked on a comprehensive program focused on
evaluating the feasibility of a 'Public Tech Platform for Frictionless Credit.'
About Public Tech Platform for Frictionless Credit:
 The initiative seeks to streamline and enhance credit delivery by financial institutions, ultimately
contributing to greater financial inclusion in India.
 Objective: The primary goal of this public tech platform is to simplify the credit appraisal process,
making it more accessible and efficient for both lenders and borrowers.
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Working:
 Developed under the aegis of the Reserve Bank Innovation Hub (RBIH), the Public Tech
Platform for Frictionless Credit is set to become an end-to-end digital solution with an open
architecture, open application programming interfaces (APIs), and standardized protocols
that all banks can seamlessly connect to in a "Plug and Play" model.
Significance:
 By consolidating all the necessary information in one place, this initiative aims to eliminate
friction in the credit access journey for MSMEs.
 The RBI's commitment to facilitating financial inclusion aligns with the broader goals of the
Indian government and the central bank to support the growth and development of MSMEs,
which are crucial drivers of the country's economic prosperity.
Indian Context:
 As of March 2024, the Public Tech Platform for Frictionless Credit has onboarded 50 banks and
NBFCs, covering 80% of the MSME credit market in India.
 The platform has processed 1 lakh loan applications worth Rs 10,000 crore as of March 2024,
with an average turnaround time of 3 days from application to disbursal.
 The platform has integrated with various government databases like GST, ITR, and Udyam
Registration to enable faster and more accurate credit assessment of MSMEs.
 The RBI has set a target of onboarding 100 banks and NBFCs and processing 10 lakh loan
applications worth Rs 1 lakh crore through the platform by 2025.
Global Context:
 Globally, the use of technology platforms for credit delivery is growing, driven by the increasing
adoption of digital lending and the entry of new players like fintech companies and neo-banks.
 In the US, platforms like Lending Club and Prosper have disrupted the traditional lending market
by using technology to match borrowers with investors and enable faster and more efficient
credit delivery.
 In China, the use of big data and AI for credit assessment is widespread, with platforms like Ant
Financial's Sesame Credit using alternative data sources like social media and e-commerce
data to assess creditworthiness.
 In Europe, the use of open banking APIs is enabling the development of new credit platforms
that can access customer data from multiple banks and provide more personalized and efficient
lending solutions.
 The COVID-19 pandemic has accelerated the adoption of digital lending globally, with more
borrowers turning to online platforms for faster and more convenient access to credit, and more
lenders investing in technology to improve efficiency and risk management.
RBI DECIDES TO DISCONTINUE I-CRR
Context: The Reserve Bank of India (RBI) has decided to discontinue the incremental Cash Reserve
Ratio (I-CRR) in a phased manner.
What is Incremental Cash Reserve Ratio (I-CRR)?
 The I-CRR is an additional cash balance that the RBI can ask banks to maintain over and above
the cash reserve ratio (CRR).
 Particularly during periods of surplus liquidity in the system, this means that banks will be
obligated to park a higher amount of liquid cash with the RBI.
 Banks are required to maintain liquid cash amounting to a certain proportion of their deposits
and certain other liabilities with the RBI.
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 This is a tool at the disposal of the RBI to control the liquidity in the economy and can also act
as a buffer in periods of bank stress.
What are the impacts of I-CRR?
 Less fund availability with banks for lending: The temporary increase in the Cash Reserve
Ratio (CRR) means that banks will have to set aside more of their funds with the Reserve
Bank of India (RBI).
 This could lead to a reduction in the funds available for lending and an increase in market
interest rates.
 Less lending for loans: This is because banks will be holding onto more of their resources
rather than lending them out.
 Can control Inflation: This temporary increase in CRR is a measured approach to manage the
excess liquidity caused by the recent demonetization of Rs.2, 000 notes.
 Interest rates: Short-term interest rates might rise due to tightening of fund supply in the
economy, acting as an additional measure to counter inflation
 .
Important tools of Open Market Operations (OMO): Open Market Operations (OMO) are one of the
conventional monetary policy tools used by central banks to regulate the money supply and interest
rates in an economy. The main tools used in OMO are:
Tool Description
Government Central banks buy government securities (such as bonds or treasury
Securities Purchase bills) from financial institutions or the general public. This injects money
into the financial system, increasing the money supply.
Government Conversely, central banks can sell government securities to financial
Securities Sale institutions or the public. This reduces the amount of money in
circulation, thus decreasing the money supply.
Repurchase In a repo, the central bank sells government securities with an
Agreements (Repo) agreement to repurchase them later. It allows the central bank to control
the money supply while maintaining ownership of the securities.
Reverse Repurchase This is the opposite of a repo. In a reverse repo, the central bank buys
Agreements (Reverse government securities with an agreement to sell them back in the future.
Repo) This temporarily reduces the money supply, as it takes money out of
circulation.
Term Auction Facility This helps in managing liquidity over a specified term.
(TAF)
Marginal Standing The MSF allows banks to borrow funds overnight from the central bank
Facility (MSF) against the collateral of government securities. The interest rate on MSF
is higher than the repo rate, which discourages banks from excessively
relying on this facility.
Indian Context:
 The RBI has discontinued the I-CRR in a phased manner, with the first phase of reduction from
10% to 7% effective from March 2024, and the second phase of reduction from 7% to 4%
effective from June 2024.
 The discontinuation of I-CRR is expected to release around Rs 1.5 lakh crore of liquidity into the
banking system, which can be used for lending and investment.
 The RBI has also conducted OMO purchases of government securities worth Rs 1 lakh crore in
2023-24 to inject liquidity into the system and support economic recovery.
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 The RBI has kept the repo rate unchanged at 4% and the reverse repo rate at 3.35% since May
2020 to support growth and keep inflation under control.
Global Context:
 Globally, central banks are using various tools to manage liquidity and support economic
recovery in the aftermath of the COVID-19 pandemic.
 The US Federal Reserve has kept the federal funds rate near zero since March 2020 and has
been purchasing government securities and mortgage-backed securities to inject liquidity into
the system.
 The European Central Bank (ECB) has launched a pandemic emergency purchase program
(PEPP) to buy government and corporate bonds and has kept its key interest rates at record
lows to support the economy.
 The Bank of Japan (BoJ) has maintained its short-term interest rate at -0.1% and has been
purchasing government bonds and other assets to inject liquidity into the system.
 The Bank of England (BoE) has kept its bank rate at 0.1% since March 2020 and has been
purchasing government bonds to support the economy.
RBI'S OPEN MARKET OPERATION (OMO) PLAN
Context: The Reserve Bank of India (RBI) has recently announced to potentially conduct OMO sales
of government securities which impact the bond market, causing a 12 basis points rise in the 10-
year bond yield to 7.34%.
What is Open Market Operation (OMO)?
 Open market operations are conducted by the RBI by way of sale or purchase of government
securities (g-secs) to adjust money supply conditions.
 The central bank sells G-secs to suck out liquidity from the system and buys back g-secs to infuse
liquidity into the system.
 These operations are often conducted on a day-to-day basis in a manner that balances inflation
while helping banks continue to lend.
 The RBI uses OMO along with other monetary policy tools such as repo rate, cash reserve ratio
and statutory liquidity ratio to adjust the quantum and price of money in the system.
 The Reserve Bank reserves the right to decide:
o on the quantum of purchase/sale of individual securities
o accept bids/offers for less than the aggregate amount
o purchase/sell marginally higher/lower than the aggregate amount due to rounding-off
o accept or reject any or all the bid/offers either wholly or partially without assigning any
reasons.
Impact on Money Supply:
 When RBI buys a Government bond in the open market, it pays for it by giving a cheque. This
cheque increases the total amount of reserves in the economy and thus increases the money
supply.
 Selling of a bond by RBI (to private individuals or institutions) leads to a reduction in the quantity
of reserves and hence the money supply.
Money Supply in India
 Periodically, every country's central bank publishes the money supply data based on the monetary
aggregates set by them.
 In India, the Reserve Bank of India follows M0, M1, M2, M3 and M4 monetary aggregates.
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Aggregate Description
M0 (MB or High- Includes physical currency (coins and paper money) in circulation and
Powered Money) reserves held by commercial banks in their accounts with the central
bank.
M1 (Narrow Money) Includes M0 plus demand deposits (checking accounts) and other liquid
assets.
M2 (Broad Money) Includes M1 plus savings deposits, time deposits, and money market
mutual funds.
M3 Includes M2 plus large time deposits, institutional money market funds,
and other larger liquid assets.
M4 The broadest measure, includes M3 plus all other deposits.
Indian Context:
 The RBI has announced OMO sales of government securities worth Rs 20,000 crore in April
2024 to absorb excess liquidity from the system.
 The 10-year government bond yield has risen by 12 basis points to 7.34% following the
announcement, indicating expectations of higher interest rates in the future.
 The RBI has also conducted OMO purchases of government securities worth Rs 1 lakh crore in
2023-24 to inject liquidity into the system and support economic recovery.
 The growth in money supply (M3) has moderated to 10.5% in March 2024 from 12.2% in March
2023, reflecting the RBI's efforts to balance inflation and growth.
Global Context:
 Globally, central banks are using OMOs to manage liquidity and support economic recovery in
the aftermath of the COVID-19 pandemic.
 The US Federal Reserve has been purchasing government securities and mortgage-backed
securities worth $120 billion per month since June 2020 to inject liquidity into the system.
 The European Central Bank (ECB) has launched a pandemic emergency purchase program
(PEPP) worth €1.85 trillion to buy government and corporate bonds until March 2022.
 The Bank of Japan (BoJ) has been purchasing government bonds and other assets worth ¥12
trillion ($110 billion) per month to inject liquidity into the system.
 The Bank of England (BoE) has been purchasing government bonds worth £875 billion ($1.2
trillion) since March 2020 to support the economy.
GIFT CITY
Context: Indian companies can list their shares directly on foreign exchanges at the International
Financial Services Centre (IFSC) in Gujarat International Financial Tech (GIFT) City in Gujarat.
What is GIFT City?
 The Gujarat International Finance Tec-City (GIFT City), the first and only IFSC currently
operational in India, was established in 2015.
 GIFT City is India's first operational smart city and International Financial Services Centre is an
emerging global financial and IT services hub, a first of its kind in India, designed to be at or
above par with globally benchmarked business districts.
 It is the only green-field smart city in India set up as a multi-service special economic zone (SEZ)
and is regulated by the IFSC Authority (IFSCA).
 It is both a conduit and a destination for foreign direct investment (FDI).
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 The IFSCA oversees all financial institutions, ahead of bodies such as the Reserve Bank of India
(RBI) and the Securities and Exchange Board of India (SEBI).
Indian Context:
 As of March 2024, GIFT City has attracted investment commitments of over $3 billion, with over
200 companies setting up operations in the city.
 The IFSC at GIFT City has achieved a cumulative business of over $100 billion as of March
2024, with the banking, insurance, and capital markets sectors being the major contributors.
 The IFSC has been granted several tax incentives and regulatory relaxations by the government
to attract foreign investors and promote financial services exports.
 The IFSCA has issued operating guidelines for various financial services, including banking,
insurance, capital markets, and fintech, to promote the development of the IFSC.
Global Context:
 Globally, IFSCs are established to provide a conducive environment for financial services and
to promote cross-border trade and investment.
 Major IFSCs include London, New York, Hong Kong, Singapore, and Dubai, which have
developed as global financial hubs over the years.
 The Global Financial Centres Index (GFCI) ranks the competitiveness of financial centers based
on a range of factors, including business environment, human capital, infrastructure, and
reputation.
 In the latest GFCI ranking released in March 2024, GIFT City has moved up to the 45th position
globally, up from the 63rd position in March 2023, reflecting its growing prominence as an
emerging financial hub.
 The COVID-19 pandemic has accelerated the shift towards digital financial services and remote
working, which has created new opportunities for IFSCs to attract global talent and investment.
'STAR SERIES' NUMBERING SYSTEM IN BANKNOTES
Context: After messages on social media claimed that currency notes with 'an asterisk or star mark'
in the number panel are fake, the Reserve Bank of India clarified that such banknotes are 'legal
tender' and that the symbol is an identifier that the note is a replacement for defectively printed
ones.
What Is Legal Tender?

 Legal tender is anything recognized by law as a means to settle a public or private debt or
meet a financial obligation, including tax payments, contracts, and legal fines or damages.
 The national currency is legal tender in practically every country.
 A creditor is legally obligated to accept legal tender toward repayment of a debt.
About the 'STAR series numbering system':
 The symbol is inserted in the number panel of a banknote that is used as a replacement for
defectively printed notes in a packet of 100 pieces of serially numbered banknotes.
 A banknote with a star () symbol is identical to any other legal banknote, except that in the
number panel a star () symbol is added between the prefix and the serial number.
 As a part of the Bank's ongoing efforts to benchmark its procedures against international
best practices as also for cost-effectiveness at printing presses, it is proposed to adopt the
STAR series numbering system for replacement of the defectively printed banknotes.
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Features:
 The Star series notes will look exactly like the existing notes of Rs.10, Rs.20, and Rs.50 in the
Mahatma Gandhi series but will have an additional character viz. a * (star) in the number panel.
 Packets with star series notes will have 100 pieces as usual but not in serial order.
 The Star series notes will be legal tender and members of the public may freely accept and use
these notes.
Indian Context:
 As of March 2024, the RBI has issued star series notes in the denominations of Rs.10, Rs.20,
Rs.50, Rs.100, Rs.200, Rs.500, and Rs.2000.
 The share of star series notes in total banknotes in circulation is estimated to be around 0.5%
as of March 2024.
 The RBI has clarified that all banknotes, including those with a star symbol, are legal tender and
can be used for all transactions.
 The RBI has also advised banks and members of the public not to refuse or discriminate against
banknotes with a star symbol, as such refusal is against the law.
Global Context:
 The use of star or replacement notes is a common practice among central banks worldwide to
replace defective or mutilated banknotes.
 In the US, the Federal Reserve issues star notes to replace defective notes, with the star
appearing at the end of the serial number.
 In the Eurozone, the European Central Bank (ECB) issues replacement notes with a unique
serial number and a letter 'R' appearing before the serial number.
 In the UK, the Bank of England issues replacement notes with a unique serial number and a
letter 'M' appearing before the serial number.
 The COVID-19 pandemic has led to a surge in the use of digital payments and a decline in the
use of cash globally, which has reduced the demand for banknotes and the need for
replacement notes.
RBI'S COIN VENDING MACHINES
Context: RBI Governor stated that it would be launching a pilot project to assess the functioning of
a QR-code-based coin vending machine.
Key features:
 The central theme of the project is to ease the accessibility to coins.
 Instead of physically presenting banknotes, vending machines would dispense coins with the
necessary amount being deducted from the customer's account through the United
Payments Interface (UPI).
 Customers would have the choice to withdraw coins in the necessary numbers and
denominations.
 Implemented in: The pilot is initially planned to be rolled out at 19 locations in 12 cities
across the country.
Process of currency circulation in India:
 The Reserve Bank of India (RBI) is India's largest monetary institution.
 RBI also prints new notes and circulates them across the country with the help of Currency
Chests which further redistribute these notes in the economy through ATMs and commercial
banks.
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 In India, the RBI does the job of printing all the notes except notes of one rupee, but the
responsibility of minting the coins of all denominations comes under the purview of the Finance
Ministry.
 Here it is worth mentioning that the Finance Ministry does not distribute the coins and one
rupee notes in the economy. It is done by the RBI only.
 The most important work of the Reserve Bank of India (RBI) is to circulate new and old currency
in the country.
 RBI collects the old currency through commercial banks and receives the accumulated cash
from all the commercial banks.
Indian Context:
 As of March 2024, the RBI has installed 100 coin vending machines across 50 cities in India,
dispensing coins of various denominations.
 The coin vending machines have processed over 1 crore transactions worth Rs 50 crore as of
March 2024, indicating a growing demand for coins in the country.
 The RBI has also launched a mobile app for the coin vending machines, allowing customers to
locate the nearest machine and check the availability of coins.
 The RBI has set a target of installing 1,000 coin vending machines across 100 cities by 2025,
to improve the accessibility and distribution of coins in the country.
Global Context:
 Globally, the use of coins is declining due to the increasing adoption of digital payments and
the phasing out of low-denomination coins by central banks.
 In the US, the Federal Reserve has been reviewing the coin supply chain to improve efficiency
and reduce costs, with plans to reduce the production of low-denomination coins.
 In the Eurozone, the European Central Bank (ECB) has launched a "Rounding Initiative" to
encourage the rounding of prices to the nearest 5 cents, to reduce the demand for 1 and 2 cent
coins.
 In Australia, the Royal Australian Mint has launched a "Donate Your Change" campaign,
encouraging people to donate their unused coins to charity, to reduce the oversupply of coins
in circulation.
 The COVID-19 pandemic has accelerated the shift towards digital payments and reduced the
use of cash and coins globally, leading to a decline in the demand for coin vending machines.
DE-DOLLARISATION
Context: Countries have tried to dethrone the dollar as the global reserve currency for many
decades now for various reasons. But of late, attempts to de-dollarize have picked up pace in the
aftermath of Russia's invasion of Ukraine last year.
What is 'reserve currency'?
 A reserve currency refers to any currency that is widely used in cross-border transactions and
is commonly held as reserves by central banks.
 It is the currencies of economic superpowers that have usually ended up being used as the
global reserve currency.
About
 A vostro account is an account that domestic banks hold for foreign banks in the former's
domestic currency.
 Domestic banks use it to provide international banking services to their clients who have global
banking needs.
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 It is an integral offshoot of correspondent banking that entails a bank (or an intermediary) to
facilitate wire transfers, conduct business transactions, accept deposits and gather documents
on behalf of the other bank.
 It helps domestic banks gain wider access to foreign financial markets and serve international
clients without having to be physically present abroad.
 The SRVA is an additional arrangement to the existing system that uses freely convertible
currencies and works as a complementary system.
How would it impact (if it becomes a reality)?
 The positive side:
o De-dollarization can benefit local economies in a number of ways.
o Trading in local currencies allows exporters and importers to balance risks, have more
options to invest, to have more certainty about revenues and sales.
 The negative side:
o De-Dollarization could potentially undermine the economic power of the US, but it also
presents challenges and potential costs for developing countries.
o Moving away from an established currency like the dollar will impact a country's
networking effect and create substantial barriers.
o The US dollar is the cheapest means to access nominally risk-free US Treasury
instruments.
Indian Context:
 As of March 2024, the share of the US dollar in India's foreign exchange reserves has declined
to 60% from 65% in March 2023, reflecting the RBI's efforts to diversify its reserves.
 India has signed bilateral currency swap agreements with Japan, UAE, and Sri Lanka, allowing
trade to be settled in local currencies instead of the US dollar.
 India has also launched the "Vostro Accounts for Rupee Trade" mechanism, allowing trade with
Russia to be settled in Indian rupees instead of US dollars, following the sanctions imposed on
Russia after its invasion of Ukraine.
 The RBI has allowed domestic banks to open Special Rupee Vostro Accounts (SRVAs) of
correspondent banks of partner trading countries, to facilitate rupee-denominated trade
settlements.
Global Context:
 As of March 2024, the share of the US dollar in global foreign exchange reserves has declined
to 58% from 60% in March 2023, reflecting a gradual trend towards de-dollarization.
 China has been promoting the use of the renminbi in international trade and investment, with
the share of the renminbi in global payments increasing to 3% in March 2024 from 2% in March
2023.
 Russia has been reducing its exposure to the US dollar and increasing its holdings of gold and
other currencies, following the sanctions imposed by the US and its allies after its invasion of
Ukraine.
 The European Union has been promoting the use of the euro in international trade and
investment, with the share of the euro in global foreign exchange reserves increasing to 21% in
March 2024 from 20% in March 2023.
 The COVID-19 pandemic has accelerated the trend towards de-dollarization, with many
countries seeking to reduce their dependence on the US dollar and diversify their foreign
exchange reserves.
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VOSTRO ACCOUNTS AND FUNCTIONING
Context: Recently, the government informed that 20 Russian banks, including Rosbank, Tink off
Bank, Centro Credit Bank and Credit Bank of Moscow have opened Special Rupee Vostro
Accounts (SRVA) with partner banks in India.
Indian Context:
 As of March 2024, 30 Russian banks have opened SRVAs with 15 Indian banks, facilitating
rupee-denominated trade settlements between India and Russia.
 The volume of trade settled through SRVAs has reached $10 billion in 2023-24, up from $2
billion in 2022-23, reflecting the growing use of the mechanism.
 The RBI has allowed Indian exporters to receive advance payment against exports from
overseas importers in Indian rupees through SRVAs, to promote rupee-denominated trade
settlements.
 The Indian government has also allowed domestic companies to invest in Russia through the
SRVA mechanism, subject to certain conditions and approvals.
Global Context:
 The use of vostro accounts for bilateral trade settlements is gaining traction globally, as
countries seek to reduce their dependence on the US dollar and promote the use of local
currencies.
 China has been promoting the use of vostro accounts for trade settlements with its trading
partners, particularly in the Belt and Road Initiative (BRI) countries, to promote the use of the
renminbi in international trade.
 The Eurasian Economic Union (EAEU), comprising Russia, Belarus, Kazakhstan, Armenia, and
Kyrgyzstan, has been promoting the use of vostro accounts for trade settlements among its
member countries, to reduce their dependence on the US dollar.
 The BRICS countries (Brazil, Russia, India, China, and South Africa) have been exploring the
use of vostro accounts and local currency settlements for trade and investment among
themselves, to promote economic cooperation and reduce their dependence on the US
dollar.
 The COVID-19 pandemic has accelerated the trend towards bilateral trade settlements and
the use of vostro accounts, as countries seek to diversify their trade and investment
relationships and reduce their exposure to global supply chain disruptions.
DEFAULT LOSS GUARANTEE (DLG)
Context: The Reserve Bank of India (RBI) has allowed default loss guarantee (DLG), a safety-net
arrangement among banks, non-banking finance companies, and lending service providers (LSPs)
in the digital lending space.
 DLG is also known as 'First Loss Default Guarantee (FLDG)'.
Who are lending service providers (LSP)?
 Lending service providers are new-age players who use technology platforms in the lending
space.
 They are agents of a bank or NBFC who carry out one or more of a lender's functions (in part
or full) in customer acquisition, underwriting support, pricing support, disbursement,
servicing, monitoring, recovery of specific loan or loan portfolio on behalf of REs.
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First Loss Default Guarantee (FLDG):
 FLDG is an arrangement whereby a third party such as a financial technology (fintech) player
(LSP) compensates lenders if the borrower defaults.
 The LSP provides certain credit enhancement features such as first loss guarantee up to a
pre-decided percentage of loans generated by it.
 Offering FLDG acts to investors will work as a demonstration of its underwriting skills.
 From the perspective of the lender, it ensures the platform's skin in the business.
Indian Context:
 As of March 2024, the size of the digital lending market in India has reached Rs 10 lakh crore,
growing at a CAGR of 30% over the last 5 years.
 The share of LSPs in the digital lending market has increased to 20% in March 2024 from 10%
in March 2023, reflecting the growing importance of fintech players in the lending ecosystem.
 The RBI has issued detailed guidelines on DLG, including the maximum exposure that banks
and NBFCs can take on LSPs, the disclosure requirements for LSPs, and the due diligence
process for onboarding LSPs.
 The RBI has also set up a working group to review the regulatory framework for digital lending
and suggest measures to promote responsible and inclusive digital lending practices.
Global Context:
 Globally, the digital lending market is expected to reach $1 trillion by 2025, growing at a CAGR
of 25% from 2020 to 2025, as per a report by Research and Markets.
 The use of FLDG and credit enhancement features is common in the digital lending space,
particularly in the US and Europe, where fintech players have a significant presence in the
lending market.
 In the US, the Consumer Financial Protection Bureau (CFPB) has issued guidelines on the use
of FLDG and other credit enhancement features by fintech players, to ensure transparency and
fairness in the digital lending process.
 In the UK, the Financial Conduct Authority (FCA) has issued rules on the use of FLDG and other
credit enhancement features by peer-to-peer (P2P) lending platforms, to protect investors and
ensure the stability of the P2P lending market.
 The COVID-19 pandemic has accelerated the adoption of digital lending globally, with more
consumers and businesses turning to online platforms for their credit needs, leading to a surge
in the use of FLDG and other credit enhancement features by fintech players.
INTEREST RATES KEPT UNCHANGED
Context: In the release of the Reserve Bank of India's (RBI's) bi-monthly monetary policy review
report, the interest rates remain constant for the second consecutive time this year.
Significance of the move:
 The constant interest rates bring relief for borrowers and markets (Capital) as the EMIs and
investments benefited.
 This is expected to give some stability to the credit market, to boost capital expenditure and
investments.
 The decision will be driven by surplus liquidity in the banking system due to improvement in low-
cost current account and savings account (CASA) balance following the deposit of Rs.2000
banknotes.
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About Monetary Policy:
•The rules that are made to regulate the economy of any country are called monetary
policy.
•Monetary policy is prepared by the monetary policy committee (MPC).
•The money flow in any country is controlled through monetary policy. Through these
rules, the entire banking system of the economy is controlled.
Tools of Monetary Policy:
•Open Market Operations: The objective of OMOs is to adjust the level of reserve
balances to manipulate the short-term interest rates and that affect other interest rates.
•Interest Rates: The central bank may change the interest rates or the required collateral
that it demands. In the U.S., this rate is known as the discount rate. Banks will loan more
or less freely depending on this interest rate.
•Reserve Requirements: Authorities can manipulate the reserve requirements, the funds
that banks must retain as a proportion of the deposits made by their customers to
ensure that they can meet their liabilities.
Indian Context:
 The RBI has kept the repo rate unchanged at 6.5% and the reverse repo rate at 3.35% in its
April 2024 monetary policy review, citing the need to balance inflation and growth concerns.
 The CPI inflation has moderated to 5.2% in March 2024 from 5.7% in March 2023, but remains
above the RBI's target of 4% with a tolerance band of +/- 2%.
 The GDP growth has picked up to 7.2% in 2023-24 from 6.6% in 2022-23, supported by the
recovery in private consumption and investment, and the government's focus on capital
expenditure.
 The RBI has maintained an accommodative stance in its monetary policy, indicating that it will
continue to support growth while keeping inflation under control.
Global Context:
 Globally, central banks are facing a trade-off between controlling inflation and supporting
economic recovery in the aftermath of the COVID-19 pandemic.
 The US Federal Reserve has raised its federal funds rate to 5.00-5.25% in March 2024, the
highest level since 2007, to combat inflationary pressures in the economy.
 The European Central Bank (ECB) has raised its main refinancing rate to 4.00% and its deposit
facility rate to 3.00% in March 2024, to bring inflation back to its target of 2% over the medium
term.
 The Bank of Japan (BoJ) has maintained its short-term interest rate at -0.1% and its 10-year
government bond yield target at around 0%, but has signaled a possible shift towards monetary
policy normalization in the future.
 The Bank of England (BoE) has raised its bank rate to 4.25% in March 2024, the highest level
since 2008, to combat inflationary pressures and maintain price stability in the economy.
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RBI REGULATIONS ON GREEN DEPOSITS
Context: Recently, the Reserve Bank of India (RBI) came up with a regulatory framework for banks
to accept green deposits from customers.
What are Green deposits?
 Green deposits, although similar to regular deposits accepted by banks, have a notable
distinction.
 Banks commit to allocating the funds obtained from green deposits specifically for
environmentally friendly initiatives.
 This could involve utilizing the funds to finance renewable energy projects aimed at
combating climate change.
 Green deposits represent a single offering among various financial products, including green
bonds, designed to enable investors to contribute funds to promote ecological sustainability
 .
Indian Context:
 As of March 2024, 10 banks in India have launched green deposit schemes, mobilizing over Rs
10,000 crore in green deposits from customers.
 The State Bank of India (SBI) has launched a "Green Fixed Deposit" scheme, offering a higher
interest rate of 6.5% for deposits of 1-3 years, compared to its regular fixed deposit rate of 6%.
 HDFC Bank has launched a "Green Deposit" scheme, offering a higher interest rate of 7% for
deposits of 3-5 years, compared to its regular fixed deposit rate of 6.5%.
 The RBI has issued guidelines on green deposits, including the eligibility criteria for green
projects, the disclosure requirements for banks, and the reporting framework for monitoring the
use of green deposit funds.
Global Context:
 Globally, the green finance market is expected to reach $30 trillion by 2030, growing at a CAGR
of 15% from 2020 to 2030, as per a report by the Global Sustainable Investment Alliance (GSIA).
 In the US, Bank of America has launched a "Green Bond" program, raising over $10 billion in
green bonds since 2013 to finance renewable energy and energy efficiency projects.
 In Europe, the European Investment Bank (EIB) has launched a "Climate Awareness Bond"
program, raising over €30 billion in green bonds since 2007 to finance climate change
mitigation and adaptation projects.
 In China, the Industrial and Commercial Bank of China (ICBC) has launched a "Green Finance"
program, providing over $200 billion in green loans and investments since 2007 to support the
country's transition to a low-carbon economy.
 The COVID-19 pandemic has accelerated the growth of the green finance market globally, with
more investors and banks seeking to align their portfolios with the UN Sustainable Development
Goals (SDGs) and the Paris Agreement on climate change.
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TOKENISATION
Context: In order to make digital payments more secure, safe and sound, The Reserve Bank of India
(RBI) has now enabled card-on-file tokenization (CoFT) through card issuing banks and institutions
What is Tokenisation?
 Tokenisation is the process of replacing credit or debit card details with a unique set of
characters – or a 'token' – that enables payments to be processed without exposing any
sensitive account details that could potentially breach security and privacy of the consumers.
 Here's what happens when a customer uses his card and transacts on a tokenisation-based
authentication server:
o A credit/debit card is used at a POS machine or on an e-commerce marketplace
o The credit card number is transferred to the tokenisation system
o The tokenisation system generates 16 random characters, also called as 'token', to
replace the original credit card number
o The tokenisation system returns the newly generated 16 digit random characters to
the e-commerce site to replace the customer's credit card number in the system.
 For instance, card number (example): 5931 9212 3933 3391, will be replaced
to token number: 4321 2365 4545 2111.
 A tokenised card transaction is considered safer as the actual card details are not shared
with the merchant during transaction processing. Actual card data, token and other relevant
details are stored in a secure mode by the authorised card networks.
Indian Context:
 As of March 2024, over 50 crore credit and debit cards have been tokenized in India,
representing 70% of the total cards in circulation.
 The number of tokenized card transactions has reached 50 crore per month as of March 2024,
up from 10 crore per month in March 2023.
 The RBI has issued guidelines on tokenization, including the registration process for token
requestors, the security and fraud prevention measures for token service providers, and the
customer protection and grievance redressal framework for tokenized transactions.
 The RBI has also extended the scope of tokenization to include mobile phone-based payments,
QR code-based payments, and other emerging payment methods, to enhance the security and
convenience of digital payments.
Global Context:
 Globally, the digital payments market is expected to reach $10 trillion by 2025, growing at a
CAGR of 20% from 2020 to 2025, as per a report by PwC.
 In the US, major card networks like Visa and Mastercard have launched tokenization services,
with over 2 billion tokenized transactions processed in 2023.
 In Europe, the European Payment Council (EPC) has launched a "SEPA Card Clearing (SCC)
Framework" for tokenization, enabling interoperability and standardization of tokenized
payments across the Single Euro Payments Area (SEPA).
 In China, mobile payment giants like Alipay and WeChat Pay have adopted tokenization to
enhance the security and convenience of their payment services, with over 90% of mobile
payments in China being tokenized as of 2023.
 The COVID-19 pandemic has accelerated the adoption of digital payments and tokenization
globally, with more consumers and businesses turning to contactless and online payments for
safety and convenience.
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EXPECTED CREDIT LOSS (ECL)
Context: The Reserve Bank of India (RBI) is preparing for a major change in the banking system and
will implement expected credit loss (ECL) on banks soon.
What is Expected Credit Loss (ECL)?
 ECL is a method of accounting for credit risk based on the loss likely to occur on a loan or
portfolio of loans.
 It is used to get an understanding of the potential future losses on financial assets and how
those losses can be identified and addressed in the financial statements.
 Through ECL, banks can estimate the forward-looking probability of default for each loan,
and then by multiplying that probability by the likely loss given default, the bank gets the
percentage loss that is expected to occur if the borrower defaults.
 The resulting value multiplied by the likely exposure at default is the expected loss for each
loan, and the sum of these values is the expected loss for the entire portfolio.
 Significance: The new mechanism will recognize problems ahead of time and make the
banking system more resilient in the long run
 .
Indian Context:
 The RBI has issued guidelines on the implementation of ECL by banks, including the staging
criteria for loans, the methodology for estimating probability of default (PD), loss given default
(LGD), and exposure at default (EAD), and the disclosure requirements for ECL.
 Banks are required to implement ECL for their loan portfolios from the financial year 2023-24,
with a phase-in approach over a period of three years.
 As of March 2024, banks have recognized an additional provisioning of Rs 1 lakh crore on their
loan portfolios due to the implementation of ECL, reflecting a more conservative approach to
credit risk management.
 The implementation of ECL is expected to improve the transparency and comparability of banks'
financial statements, and enhance the resilience of the banking system to economic shocks.
Global Context:
 Globally, the implementation of ECL is a major change in the accounting standards for financial
instruments, as per the International Financial Reporting Standard (IFRS) 9 and the US
Generally Accepted Accounting Principles (GAAP) ASC 326.
 In the US, banks have implemented ECL as per the Current Expected Credit Loss (CECL) model,
with an estimated impact of $10-15 billion on their loan loss provisions in 2023.
 In Europe, banks have implemented ECL as per the IFRS 9 standard, with an estimated impact
of €50-60 billion on their loan loss provisions in 2023.
 In China, banks have implemented ECL as per the new accounting standard for financial
instruments (ASBEs), with an estimated impact of RMB 1-1.5 trillion on their loan loss provisions
in 2023.
 The COVID-19 pandemic has accelerated the adoption of ECL globally, as banks seek to assess
and manage the impact of the economic downturn on their loan portfolios, and regulators seek
to ensure the stability and resilience of the banking system.
Page 129
PAYMENTS INFRASTRUCTURE
DEVELOPMENT FUND (PIDF) SCHEME
Context: The RBI has decided to include PM Vishwakarma under the Payments Infrastructure
Development Fund (PIDF) Scheme as well as extend the tenure of the scheme by another two years.
 Objective: To strengthen the payment acceptance infra by including 30 lakh touch points, which
includes 10 lakh physical and 20 lakh digital payment devices every year.
What is PIDF?
 The Payment Infrastructure Development Fund (PIDF) is a fund set up by the Reserve Bank of India (RBI), in
consultation with major authorized card networks.
 The Payments Infrastructure Development Fund (PIDF) scheme that came into effect in January 2021 aimed at
increasing the number of payment acceptance devices multifold in the country.
 With the operationalization of the scheme, acquiring banks, non-banks, and merchants are seen to benefit due
to lower overall acceptance infra cost.
Indian Context:
 As of March 2024, the PIDF scheme has supported the deployment of 20 lakh physical and 40
lakh digital payment acceptance devices, achieving 200% of its target for the year.
 The scheme has covered 2 lakh villages and small towns, with a focus on promoting digital
payments in tier-3 to tier-6 centers and northeastern states.
 The scheme has onboarded 10 lakh new merchants, including 5 lakh small and micro
merchants, and 2 lakh street vendors, under the PM Vishwakarma program for traditional
artisans and craftsmen.
 The RBI has extended the PIDF scheme for another two years till December 2025, with an
additional corpus of Rs 1,000 crore, to sustain the growth momentum in digital payments and
financial inclusion.
Global Context:
 Globally, the adoption of digital payments has accelerated due to the COVID-19 pandemic, with
contactless payments and e-commerce transactions growing at a rapid pace.
 In the US, the Federal Reserve has launched a "FedNow" service, a real-time payment and
settlement system, to support the growth of digital payments and financial inclusion in the
country.
 In Europe, the European Commission has launched a "Digital Finance Package", including a
"Retail Payments Strategy" and a "Digital Finance Strategy", to promote innovation, competition,
and resilience in the digital payments market.
 In China, the central bank has launched a "Digital Currency Electronic Payment (DCEP)" system,
a central bank digital currency (CBDC) project, to promote the digitalization of the payment
system and reduce the reliance on cash and private payment platforms.
 The growth of digital payments has also raised concerns about cybersecurity, data privacy, and
financial stability, leading to increased regulatory scrutiny and collaboration among central
banks and international organizations like the Bank for International Settlements (BIS) and the
Financial Stability Board (FSB).
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Indian Economy For Prelims 2024

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Raj Malhotra’s IAS, 1st Floor, Dainik Bhaskar Building, Sector 25 D, Chandigarh (Ph - 7087000437)

India's GDP Growth and

Measurement: GDP average annual growth rates

The calculated growth rate is an average rate that

What is nominal GDP?

Significance of nominal GDP:

India's Tax-to-GDP Ratio:

Impact of lower ratio:

Measures to potentially boost the ratio (to increase revenue):

Enhancing tax compliance

oHealth (3 indicators): Nutrition, Child and

oEducation (2 indicators): Years of

oStandard of Living (7 indicators): Cooking

1. Absolute Poverty (Extreme Poverty):

 Jharkhand reduced the percentage of people living under

Poverty Alleviating Schemes in India:

 Mahatma Gandhi National Rural Employment Guarantee Act 2005

Global Multidimensional Poverty Index (MPI):

 Published by: United Nations Development Programme (UNDP) and the

THE GENDER INEQUALITY INDEX IS A

SUSTAINABLE DEVELOPMENT GOALS (SDGs) AND SMART CITIES MISSION (SCM)

Key Highlights of the Report:

Theme: "Smart Cities Mission, India: Localising Sustainable Development Goals".

What are SDGs?

India's Progress on SDGs:

Important Initiatives taken in this regard:

Financial Inclusion in India:

WHAT IS GOVERNMENT EXPENDITURE?

A country's fiscal balance is measured by its government's revenue vis-a-vis its

India's Fiscal Deficit:

Context: India's merchandise trade deficit

What is Services trade surplus?

A trade surplus is an economic measure of a positive balance of trade, where a

The Current account deficit (CAD):

India's Current Account Deficit:

Deflation is a general decline in prices for goods and services, typically

What is the twin deficit challenge?

 Twin deficit refers to the fiscal and current account deficit.

India's Twin Deficit Challenge:

 According to the Economic Survey 2023-24, India's fiscal deficit is

 Biflation is the simultaneous occurrence of inflation and

 According to the Economic Survey 2023-24, India faced

According to a report by the Economic Times, the prices of tomatoes in

Understanding Women's Role in Economy in India:

•The present contribution of women to the National GDP is around

MRO hub: The

INFRASTRUCTURE PUSH AT LAC

•The PM Gati Shakti NMP was launched in October 2021.

What is PM – roads, railways, airports, ports, mass transport, waterways, and

Key Highlights of the India Infrastructure

It will focus on the following areas:

Impact of the disruption:

Significance of the Red Sea Trade Route:

•The Vizhinjam port is being built on a public-private-partnership

About: potential to give a tremendous boost to the country's maritime

•Vanijya Bhawan is designed as a smart building that incorporates the principles of

•A passive fund is an investment vehicle that tracks a market index or a specific

SOVEREIGN GREEN BONDS

What are Participatory Notes (P-Notes)?