Fiscal Health Index
- The Fiscal Health Index (FHI), developed by NITI Aayog, serves as a tool to promote fiscal discipline and prudent financial management among Indian states.
- It ranks states based on performance across key pillars including revenue mobilisation, quality of expenditure, fiscal prudence, and debt sustainability.
- The index encourages competitive federalism by making state fiscal performance publicly visible and comparable, motivating states to improve.
- FHI is crucial for maintaining India’s overall sovereign risk profile, especially as the central government targets reducing its debt-to-GDP ratio from 2026-27.
- By fostering transparency and supporting policy reforms, the FHI helps align state fiscal strategies with national goals and promotes macroeconomic stability.
- Recently published FHI rankings act as a policy nudge and a credible benchmark for sub-national fiscal discipline, boosting investor confidence.
SHGs India
- MoU Signed between MoRD and MSDE: This is news because two key ministries (Rural Development and Skill Development & Entrepreneurship) have formally joined forces to boost a major rural empowerment initiative.
- Focus on Empowering SHG Women for Lakhpati Didi: The collaboration specifically targets women in Self Help Groups (SHGs) to help them achieve the Lakhpati Didi goal (earning ₹1 lakh+ annually). This is news as it signifies a strategic push for a defined economic target for rural women.
- Goal to Create 3 Crore Lakhpati Didis: The MoU directly supports the national target, recently increased from 2 crore, highlighting the government’s elevated ambition for women’s economic self-reliance. This is a significant policy target.
- Strategic Convergence for Skilling: The partnership aims to align skill development infrastructure with rural women’s aspirations through structured training, entrepreneurship support, and market-aligned interventions. This is news because it brings formal skilling resources directly to grassroots level SHGs.
- Key Actions Under MoU: Includes customized training modules, training of trainers, formal certification via Skill India Digital Hub, integration into district plans, and joint outreach. These are the practical steps being taken, making it actionable news.
- Strengthening DAY-NRLM: The MoU is under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), emphasizing that this skilling push is part of the existing large-scale rural livelihoods program, not a separate scheme. This clarifies the implementation framework.
- Vision for Viksit Bharat@2047: The initiative is framed as a step towards a developed India by 2047, positioning women’s economic empowerment via SHGs as crucial to national development. This provides the broader ‘why’ or context for the news.
Golden Jubilee Official Lang
- Union Home Minister Amit Shah addressed the Golden Jubilee celebration of the Department of Official Language in New Delhi, marking 50 years of its journey.
- The event highlighted the department’s role in promoting the use of Indian languages in governance and administration to awaken national self-respect.
- Emphasis was placed on language being the soul of the nation, essential for preserving culture, history, and identity, and crucial for freeing India from a ‘mentality of slavery’.
- The importance of Indian languages (Hindi and regional) as a powerful medium to unite the country was stressed, rather than divide.
- The Modi government’s efforts were highlighted, including boosting languages in technology, education, and administration, initiatives like ‘Ek Bharat, Shreshtha Bharat’ and Bhasha Sangam, introducing technical/medical education in Indian languages, and recognising 11 classical languages.
- The department’s contributions in implementing the Official Languages Act and preserving linguistic diversity were acknowledged.
- A call was made for continued efforts to strengthen the use of Hindi and regional languages, reinforcing the government’s commitment to linguistic inclusivity and national unity.
Rhone Glacier
- The Rhone Glacier, a significant source of the Rhône River in the Swiss Alps, is making news due to rapid changes caused by climate change.
- It currently resembles “Swiss cheese,” characterized by internal holes that collapse, a phenomenon attributed to the glacier’s lack of dynamic regeneration as ice melts faster than it forms.
- The glacier has shrunk dramatically since the 19th century and is projected to disappear by the end of the 21st century.
- It is experiencing significant melting rates, losing meters of ice height per year, reflecting an accelerating trend observed in Swiss glaciers.
- Its decline is a key indicator of wider glacial retreat in the Alps and raises concerns about impacts on vital water resources for agriculture, drinking water, and hydroelectric power.
MSME Day 2025
- President Droupadi Murmu will preside over the MSME Day 2025 – Udyami Bharat event on June 27, 2025, in New Delhi, highlighting the government’s commitment to the sector.
- The event acknowledges the crucial role of MSMEs as the backbone of India’s economy, contributing nearly 30% to GDP, 48% to exports, supporting ~110 million jobs, and driving inclusive growth and entrepreneurship.
- Launch of the Online Dispute Resolution (ODR) Portal to enable micro and small businesses to resolve payment disputes quickly and cost-effectively, addressing the significant capital locked up due to delayed payments.
- Release of a Commemorative Stamp and celebration of CGTMSE@25, marking 25 years of the Credit Guarantee Fund Trust which has provided significant credit support (~₹9.80 lakh crore in guarantees), vital for MSMEs’ access to finance.
- Launch of MSME Hackathon 5.0 to foster innovation and entrepreneurship among MSMEs, aligned with the Aatmanirbhar Bharat vision, building on the results of Hackathon 4.0.
- Release of ‘MSME Patrika’ and ‘Know Your Lender’ publications to enhance credit literacy and provide useful information to MSME entrepreneurs.
- The event reinforces the objective of building a digitally empowered, resilient, and competitive MSME ecosystem to drive India’s economic development.
Cancer Drugs
- Investigation revealed many cancer drugs shipped globally have failed quality tests.
- This impacts common chemotherapy drugs used for various cancers like testicular, ovarian, bladder, lung, breast, leukemia, lymphoma, and sarcoma.
- Examples of drugs mentioned include platinum-based drugs like Cisplatin and Oxaliplatin, Cyclophosphamide, Doxorubicin, and Methotrexate.
- These drugs work by damaging or interfering with cancer cell DNA to block division but have known significant side effects.
- Leucovorin, used to reduce the toxicity of some chemotherapy drugs, was also noted.
- The quality issue is relevant to cancer care systems, such as in India, where cancer is a major public health challenge with ongoing efforts in treatment and infrastructure development.
MSME Driving India Growth
- MSMEs are crucial to India’s growth, contributing 30% to GDP, 45.73% to exports, and employing over 25 crore people – driving national economic growth, international trade, and employment creation across sectors and regions.
- Revised classification criteria (higher investment/turnover limits) – enables MSMEs to scale up operations while retaining access to vital government benefits and incentives, thus supporting broader economic expansion.
- MSME status provides significant benefits (collateral-free loans, lower interest rates, subsidies, preferential procurement, protection against delayed payments, tax benefits) – these facilitate easier access to finance, reduce operational costs, improve cash flow stability, and enhance market opportunities for sustained growth.
- Government schemes (PMEGP, CGTMSE, MSE-CDP, RAMP, etc.) – offer targeted support addressing key areas like credit access, technology adoption, market development, and skill enhancement.
- Union Budget 2025-26 reinforces support (increased credit guarantee limits, new MSME Credit Card, Fund of Funds) – designed to improve access to finance, boost entrepreneurship, and support labour-intensive and clean technology sectors.
- Despite support, challenges remain (inadequate finance, delayed payments, low tech integration, infrastructure gaps, limited market access, regulatory hurdles) – these impede productivity, limit competitiveness, and strain working capital.
- Strategic solutions (CGTMSE, TReDS, ZED certification, digital initiatives, cluster development, simplified regulations) – are necessary to provide easier credit, faster payments, technological upgrades, and better market access.
- Ultimately, MSMEs are a cornerstone of the economy, and addressing their challenges through coordinated efforts is vital for achieving inclusive and resilient growth.
Second Indian in Space
- Group Captain Shubhanshu Shukla becomes the second Indian to travel to space (after Rakesh Sharma in 1984) and the first Indian to reach the International Space Station (ISS). Why: Marks a historic milestone for India’s human spaceflight program and global presence in space.
- Shukla is part of the Axiom-4 commercial spaceflight mission to the ISS, operated by Axiom Space. Why: Signifies India’s participation in private sector space initiatives and international collaboration in space exploration.
- The mission provides critical hands-on experience for India’s planned Gaganyaan mission. Why: Offers vital learning in crew operations, microgravity research, and space biology, laying groundwork for future independent Indian human space missions.
- Human spaceflight is a key strategic capability for India. Why: Strengthens India’s global standing, supports long-term goals like establishing its own space station by 2035 and a human lunar mission by 2040, and ensures India is not excluded from future space opportunities.
- ISRO was an equal partner in the Axiom-4 mission planning and execution. Why: Showcases India’s technological competence and boosts its international standing, opening avenues for private sector participation and economic growth.
- The mission promotes space tourism, private research, and inspires youth. Why: Supports the expansion of the commercial space sector, helps build a skilled talent pipeline for India’s space industry, and promotes STEM education.
- This trip marks the start of a new phase for ISRO. Why: Aims to make human spaceflight more routine and energizes the agency towards achieving bigger feats in space.
CHPV: Favipiravir Promise
- ICMR-National Institute of Virology (NIV), Pune, identified Favipiravir as a potential therapeutic drug against Chandipura virus (CHPV).
- Why: There is currently no specific antiviral drug or vaccine for CHPV; treatment is only symptomatic and supportive.
- Preclinical mouse studies showed Favipiravir reduced viral load and improved survival rates in infected animals.
- Why: CHPV is a neurotropic RNA virus causing rapid, severe encephalitic illness, particularly in children, with high fatality rates if untreated.
- CHPV is endemic to central India, transmitted by sandflies, and major outbreaks occurred recently in 2024 in Gujarat and Maharashtra, highlighting the need for effective treatments.
- Why: Favipiravir is a broad-spectrum antiviral that inhibits the enzyme essential for RNA virus replication and has been repurposed for other emerging RNA viruses like Covid-19.
- The findings are preliminary; further validation in other animal models is required before human clinical trials can proceed, which is expected to take several months.
Harihara Lamp
- A rare 15th-century dual-faced lamp depicting Shiva-Vishnu syncretism was discovered at Perdoor Anantapadmanabha Temple, Udupi, Karnataka. Why: It’s a rare artistic blend reflecting the daily rituals and fusion of Shaiva and Vaishnava traditions.
- The lamp dates to 1456 CE, confirmed by an inscription detailing its donation. Why: Provides precise historical context and authenticity.
- The first face narrates Shiva’s Pralaya Tandava (destructive dance), featuring Shiva (Nataraja), Parvati, Ganapati, Bringi, and Khadga Ravana seated on Goddess Mari. Why: Depicts a significant Puranic story related to Shiva’s cosmic role.
- The second face shows Brahma, Indra, Anantapadmanabha (Vishnu), Agni, and Varuna pleading with Vishnu to pacify Shiva. Why: Symbolizes cosmic harmony and Vishnu’s role as protector calming the destructive force.
- Figures are shown in Samabhanga pose with distinct headgear; the base includes Garuda, and Shiva is depicted praying to Anantapadmanabha at the back. Why: Highlights artistic details and completes the narrative of peace restoration.
- The presence and depiction of Khadga Ravana-Mari, who is still worshipped in the temple’s outer prakara, is notable. Why: Shows the survival and integration of ancient folk-deity traditions alongside mainstream Hinduism.
Poverty Line Issues
- Poverty figures in India are highly debated due to varied calculation methods and conflicting reports.
- Recent claims of lifting millions out of poverty (Govt/World Bank) are based on the World Bank’s international poverty line, revised to $3/day (PPP-adjusted).
- The issue arises from misunderstanding PPP (Purchasing Power Parity) vs. market exchange rates; $3 is ₹62/day in India based on PPP (20.6), not ₹255 using the market rate (₹85), leading to confusion.
- Poverty lines are crucial for gauging poverty extent and evaluating policy effectiveness (Governance/Economy).
- India lacks an officially adopted, updated domestic poverty line since the Tendulkar Committee’s 2011-12 estimates (₹36/₹30 rural/urban), despite Rangarajan Committee suggesting a higher line in 2014.
- This policy vacuum means India relies on the World Bank’s global standard or the NITI Aayog’s non-income based Multidimensional Poverty Index, which may not fully capture India-specific deprivation.
- The absence of a context-specific domestic line hinders accurate assessment of economic well-being beyond extreme poverty and leads to competing narratives regarding the actual state of poverty reduction (Economy).
Sagarmala Finance
- Sagarmala Finance Corporation Limited (SMFCL) has been established as India’s first maritime sector-specific Non-Banking Financial Company (NBFC). This is key as it provides the first dedicated financial institution tailored specifically for the unique needs of the maritime ecosystem.
- SMFCL is a Mini Ratna (Category-I) Central Public Sector Undertaking (CPSU) under the Ministry of Ports, Shipping and Waterways, formerly known as Sagarmala Development Company Ltd. Its status as a government undertaking provides strategic importance and backing. It is formally registered with the Reserve Bank of India (RBI) as of June 19, 2025, ensuring regulatory compliance.
- Its core mandate is to bridge financing gaps and provide customized financial solutions (short, medium, long-term) to a diverse range of maritime stakeholders, including port authorities, shipping companies, MSMEs, startups, and educational institutions. This fulfills a long-standing industry demand for accessible and sector-specific funding.
- SMFCL will support strategic sectors like shipbuilding, renewable energy in the maritime domain, cruise tourism, and maritime education. This highlights its role in fostering innovation and growth in critical areas.
- The establishment aligns with India’s Maritime Amrit Kaal Vision 2047 and other national maritime strategies, reinforcing the goal of making India a leading global maritime power by accelerating infrastructure development and unlocking investment opportunities.
- As an NBFC, it functions as a financial institution regulated by the RBI, engaged in lending and investment activities, different from banks as it cannot accept demand deposits. This defines its operational framework.
Financing Development
- The 4th UN International Conference on Financing for Development (FfD4) is set for June 30-July 3, 2025, in Seville, Spain. Why: This is the specific event being reported.
- It aims to discuss urgent reforms to strengthen financing for the Sustainable Development Goals (SDGs) and unlock affordable development finance. Why: Addresses the critical global need for funding sustainable development.
- Key focus areas include reforming the international financial architecture, addressing debt sustainability, implementing tax reforms, and closing the $4 trillion annual SDG financing gap. Why: These are the main challenges and solutions on the agenda.
- The conference brings together global leaders, financial institutions, businesses, and civil society. Why: It’s a high-level, multi-stakeholder platform for global financial dialogue.
- An outcome document, ‘Compromiso de Sevilla’, has already been agreed upon by UN Member States ahead of the summit. Why: This indicates a degree of pre-negotiated consensus on the way forward.
- The conference is part of an ongoing UN process dating back to 2002, building on previous agreements like the Addis Ababa Action Agenda. Why: Places the event within a historical context of global efforts to fund development.
- The United States is not participating in the FfD4 process. Why: This is a notable absence from a major international financial discussion.
Nano-Fert
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News: Indian Farmers Fertiliser Cooperative (IFFCO) is setting up its first overseas nano fertiliser plant in Brazil.
- Why in News: This marks a significant step in IFFCO’s global expansion, following successful exports to over 40 countries and capitalising on growing international interest.
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News: The plant in Curitiba, Brazil, will have an annual capacity of 4.5 million litres.
- Why in News: This highlights the scale of IFFCO’s international manufacturing ambitions and the potential impact on fertilizer supply in the region.
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News: Brazil has seen positive results using Indian nano fertilisers, including reduced conventional fertilizer use and increased crop yields (corn, soybean, sugarcane).
- Why in News: This success story in a major agricultural nation like Brazil demonstrates the potential effectiveness of nano fertilisers and is driving demand, justifying the overseas plant investment.
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News: Nano fertilisers offer potential benefits for India, such as reducing the large fertilizer subsidy burden and decreasing import dependency.
- Why in News: This provides the domestic context and strategic importance of nano fertilisers for India’s economy and agricultural sustainability.
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News: India is seeing steady adoption of Nano Urea and Nano DAP, with IFFCO planning further variants like Nano Zinc and Nano Copper.
- Why in News: This shows the ongoing progress and future direction of nano fertiliser technology and market penetration in India.
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News: Challenges remain regarding farmer awareness, inconsistent results in audits, and potential food chain risks associated with nano fertilisers.
- Why in News: These points represent critical factors influencing the wider adoption and regulatory landscape of nano fertilisers, adding complexity to their rollout.