Daily Current Affairs and News Analysis 15-05-2025

RBI Introduces Bond Forwards: The Reserve Bank of India (RBI) is introducing regulations for bond forwards, aiming to create a structured market for forward contracts in government securities. Effective from May 2nd.

What are Bond Forwards? These are agreements to buy or sell a government bond at a pre-set price on a future date, allowing management of interest rate risks.

Purpose: To allow long-term investors to hedge interest rate risk and improve cash flow planning and to deepen bond derivatives market.

Physical Delivery: Bond forwards will involve the actual transfer of the bond, unlike Forward Rate Agreements (FRAs) which have only cash settlement.

Boost to SDL Demand: Bond forwards are expected to increase demand for 10-15 year State Development Loans (SDLs) due to their higher yields compared to central government bonds.

Who Can Participate?: Residents and non-residents eligible to invest in government securities, and non-retail entities, along with Scheduled Commercial Banks (SCB), Primary Dealers, and institutional investors like insurance companies. Excludes SFBs, payment banks, LABs and RRBs.

News: Calls for strengthening G20’s effectiveness by increasing inclusivity and global representation, especially with South Africa chairing in 2025.

Problem: The G20 faces criticism for its limited membership, excluding over 90% of nations. This undermines its credibility and legitimacy in addressing global issues that require broad cooperation. The group is considered a self-selected club, lacking a mandate from the broader international community.

Impact: Exclusive decision-making within the G20 can sideline the concerns of poorer countries, particularly on issues like aid and climate finance, leading to divergent priorities and deepening global inequality.

Proposed Solution: Adopt a model similar to the Financial Stability Board (FSB), which includes Regional Consultative Groups (RCGs) to gather input from non-member countries.

• This would involve establishing regional consultative groups for the G20, allowing non-member countries to share perspectives and contribute to decision-making.

Benefits of the Solution:

• Maintains the core G20 membership while establishing formal consultation with regional neighbors.
• Empowers smaller nations by enabling them to voice regional challenges with more credibility.
• Establishes a degree of G20 accountability to the broader international community.

Additional Reforms:

• Grant permanent observer status to non-G20 nations, especially from the Global South.
• Establish a Permanent Secretariat for continuity and accountability.
• Set binding climate funding targets and reform global debt architecture.

South Africa’s Role: As the 2025 G20 chair, South Africa is positioned to champion these reforms, potentially starting by establishing an African G20 regional consultative group.

Colombia Joins BRI: Colombia formally joined China’s Belt and Road Initiative (BRI) on May 14, 2025, signaling closer ties with China.

Strategic Significance: Colombia’s location as the “Gateway of South America” makes it strategically important for BRI, connecting South, Central, and North America.

Economic Opportunities: The agreement is viewed as a “historic step” that provides Colombia with opportunities for investment, technological cooperation, and sustainable development with China.

China’s Expanding Influence: China is surpassing the U.S. as a key trading partner in Latin America, with most countries in the region already part of BRI.

China’s Goals: China aims to expand its economic and political influence via BRI, using infrastructure investment for leverage.

U.S. Concerns: The growing China-Colombia nexus and China’s overall influence in Latin America may prompt the U.S. to try to counter.

Countering Unilateralism: China positions itself as a defender of multilateralism and free trade against unilateralism and protectionism.

India’s Response: The growing China-Colombia nexus under BRI may call for India to deepen its strategic outreach in Latin America to balance regional influence and secure economic opportunities.

Geopolitical Context: The U.S. and China are competing for influence in Latin America, including over the Panama Canal.

Rise in CSR Spending: Listed companies in India saw a 16% increase in CSR expenditure in FY 2023-24, totaling Rs 17,967 crore, compared to Rs 15,524 crore in FY 2022-23. This is driven by improved profitability across sectors.

High Compliance: About 98% of companies met their CSR obligations, with nearly half exceeding the mandated 2% spending.

Top Contributors: HDFC Bank, Reliance Industries, TCS, and ONGC were the largest CSR contributors.

Sectoral Allocation: Education received the largest share of funds (Rs 1,104 crore), followed by healthcare (Rs 720 crore). Environmental sustainability spending increased the most (54%).

Declines in Specific Areas: Support for slum development, rural development, and welfare of armed forces veterans decreased significantly.

State-wise Distribution: Maharashtra, Rajasthan, and Tamil Nadu were the top recipients of CSR funds.

Spending Methods: 31% of companies directly spent on CSR, while most funds (over 50%) were channeled through implementing agencies.

Unspent Amounts: Some companies transferred unspent CSR funds (Rs 2,329 crore) to Unspent CSR Accounts for future use. 27 companies didn’t spend at all.

PSU Contribution: Public Sector Undertakings (PSUs) increased their CSR contribution by 19%.

Call for Revised Thresholds: There is a suggestion to revise CSR thresholds upwards, given the increase in companies’ net profits since the regulation was introduced in 2014, potentially easing the burden on smaller companies.

CSR Committees: The CSR Act mandates companies to appoint a CSR committee comprising at least three members of the board of which at least one should be independent, in case the CSR spend is more than Rs 50 lakh.

Pakistan Military Build-up: Recent reports indicate a significant build-up of Pakistani tanks, armored vehicles, and Chinese-made SH-15 howitzers near the Shakargarh Bulge.

Strategic Location: The Shakargarh Bulge is a strategically important area of Pakistani territory that juts into India, bordered by the Ravi and Chenab rivers. Its flat terrain and proximity to key Indian cities make it a crucial corridor.

Indian Response: India has responded with “mirror deployments” of its forces in the area.

Violation of Understanding: Pakistan violated an understanding to cease cross-border military action by sending drones across the western front.

Authorized Retaliation: The Indian Army has been granted “full authority” to commanders for “counteraction” against any further Pakistani misadventures.

Historical Significance: The Shakargarh Bulge was the site of the Battle of Basantar during the 1971 Indo-Pakistani War, highlighting its historical military importance.

Proximity to Indian Cities: The Bulge’s closeness to Amritsar, Pathankot, Batala, and Gurdaspur, coupled with road links to Jammu, makes it a high-priority area for the Indian Army.

Largest-Ever Joint Military Exercise: Cambodia and China launched their largest Golden Dragon exercise involving land, sea, and air operations. This highlights deepening military cooperation.

Annual Bilateral Drill: Golden Dragon, initiated in 2016, aims to strengthen strategic ties between China and Cambodia. Its consistent execution signifies ongoing commitment.

Official Theme: Joint counter-terrorism operations and humanitarian relief are the declared focus, projecting a peace-building image. This frames the exercise publicly.

Ream Naval Base Location: The exercise takes place at Ream Naval Base, officially inaugurated with Chinese warships, showcasing China’s expanding naval presence.

Advanced Military Technologies: The drill features reconnaissance drones, surgical robots, and robot dogs, indicating a shift towards tech-driven warfare. It reflects modernization efforts.

Concurrent Exercise: Golden Dragon coincides with the U.S.-Philippines-led ‘Balikatan’ exercise, signaling geopolitical dynamics in the region.

Dual-Use Port Concerns: China’s access to Ream Naval Base raises concerns similar to those in Sri Lanka (Hambantota) and Pakistan (Gwadar), sparking strategic debate.

Military Power Projection: The exercise reflects China’s growing ability to project military power, consistent with its “String of Pearls” strategy. It underscores China’s regional ambitions.

Stalled Rejuvenation Project: A Rs 1,500-crore project to rejuvenate a 44-km stretch of the Adyar River has been stalled since 2023 due to local political interference.

Obstruction: Local politicians are obstructing the removal and relocation of encroachers along the riverbanks, hindering project progress.

DPR Delay: The Chennai Rivers Transformation Company,

Finance Issues: Khilari needs the DPR to secure bank financing (Rs 750 crore), which is impossible without addressing the encroachment issue.

Encroachment Details: Approximately 700 houses in Thideer Nagar (Saidapet), 350 in Jafferkhanpet, and 350 in Kotturpuram are obstructing the project.

Slumlords and Votes: Slumlords, backed by politicians, are preventing biometric surveys of encroachers who constitute a significant vote bank (around 10,000 votes).

Relocation Issues: While the Tamil Nadu Urban Habitat Development Board has houses available, encroachers are unwilling to relocate, allegedly due to political influence.

Sewage Treatment Plants: Five STPs are planned in the encroachment areas, but construction and operation are impossible with the current situation.

Minister’s Response: State Health Minister Ma Subramanian, representing Saidapet, suggests relocating encroachers within the same area, with a resolution expected in three months.

River’s Condition: The Adyar River is in dire condition, with 0 dissolved oxygen, making it unable to sustain life. Plugging sewage and removing silt are crucial for restoration.

Massive Investment: Union Cabinet approves ₹60,000 crore scheme to upgrade 1,000 government ITIs over 5 years.

• Why: Addresses suboptimal past funding to meet full upgradation needs of ITIs.

Funding Model: Centre (₹30,000 crore), States (₹20,000 crore), Industries (₹10,000 crore), with ADB & World Bank co-financing 50% of the central share.

• Why: Diversified funding ensures commitment and sustainability.

Hub-and-Spoke Model: Upgrades ITIs with industry-relevant trades.

• Why: Focuses on aligning workforce supply with industry demand and new-age trades like AI, automation, and advanced manufacturing.

National Centres of Excellence (NCOEs): 5 NCOEs to be set up in existing NSTIs (Bhubaneswar, Chennai, Hyderabad, Kanpur, Ludhiana) to train 50,000 trainers.

• Why: Strengthens the training ecosystem by focusing on trainer development.

Industry-Led SPV Model: Industry drives curriculum, infrastructure, and management.

• Why: Shifts control from government-only to public-private collaboration, ensuring relevance and responsiveness.

Skill Development Goal: Aims to skill over 2 million youth.

• Why: Addresses human capital needs of industries and facilitates employment-ready workers, especially for MSMEs.

Need-Based Investment: Allows flexibility in fund allocation based on the specific needs of each ITI.

• Why: Ensures resources are directed where most needed for infrastructure, capacity expansion, and new trades.

Global Manufacturing Hub Aspiration: Positions ITIs to cater to skilled manpower requirements.

• Why: Aligns with the nation’s goal to become a global manufacturing and innovation powerhouse.

GLEX 2025 & PM’s Vision: India’s space program empowers citizens, drives economic development, and is not just a race but collaborative effort for humanity.

ESA Collaboration: ESA open to collaboration with India on larger space exploration ventures.

Historical Evolution:

• 1960s-70s: Basic atmospheric studies using sounding rockets.
• 1980s-90s: Development of SLV, INSAT, and IRS for communication, weather, remote sensing.
• 2000s-2010s: Successful lunar (Chandrayaan-1) and Mars (Mangalyaan) missions, proving capabilities.
• 2010s-2020s: Launch services to 34 countries, G20 Satellite Mission.
• 2020s-2040s: Gaganyaan, Moon missions (2040), Mars and Venus exploration, Bharatiya Antariksh Station (2035).

Private Sector Rise: Over 250 space startups driving innovation; first private rocket launch (Vikram-S) and launchpad.

Socio-Economic Impact:

• Public Service: SVAMITVA, e-KYC via Aadhaar.
• Agriculture: FASAL, Bhuvan-Krishi.
• Disaster Management: Cyclone tracking, flood/drought monitoring (NADAMS).
• Digital Divide: Broadband to remote areas.
• National Security: GSAT-7, Cartosat, NavIC.

Key Challenges:

• Budgetary constraints (0.04% of GDP).
• Import dependencies.
• Space debris.
• Security vulnerabilities.
• Brain drain.
• Limited commercial presence (2-3% global share).
• Geopolitical competition (China).

Measures for Strengthening:

• Diversify funding.
• Indigenous technology development (Space Technology Innovation Hubs).
• Talent retention.
• Space sustainability (SSA, de-orbiting).
• International collaborations (NASA, ESA).
• Space-based entrepreneurship (National Space Innovation Framework).

Future Outlook: Indian astronaut mission to ISS, footsteps on moon by 2040; Mars and Venus in radar.

Chhattisgarh High Court Monitoring Development: The court is actively overseeing development initiatives at Madku Dweep (also known as Kedar Tirth and Harihar Kshetra Kedar Dweep).

Infrastructure Upgrades Approved: ₹45.44 lakh sanctioned for infrastructure upgrades including stairs, a retaining wall, patching work, and a concrete road. Aim is to enhance accessibility and structural stability.

Construction Progress: Work has commenced and is targeted for completion before the rainy season.

Improved Sanitation: Toilet facilities constructed in 2018 were handed over to Gram Panchayat Madku for maintenance. A local women’s self-help group is involved in managing the toilets.

District Administration’s Commitment: Mungeli district administration aims to develop Madku Dweep as a key tourist destination.

Court Acknowledges Progress: High Court recognizes visible improvements in the situation at Madku Dweep.

Next Hearing Scheduled: The next hearing is set for July 1, with the Collector and DFO of Mungeli required to submit updated affidavits detailing further progress.

Historical Significance: Madku Island is important due to archeological discoveries that include stone tools, inscriptions, and ancient temples dating back to the 3rd century BC.

Religious Diversity: Besides its Hindu temples, Madku Island hosts the Masihi Mela, an annual Christian fair that has been held since 1909.

Location and Features: Madku Island is located on the Shivnath River (a tributary of the Mahanadi) in the Bilaspur district of Chhattisgarh, and is shaped like a frog.

Chromosome-Level Yak Genome Assembled: Scientists from four ICAR institutes successfully assembled the first chromosome-level genome of the Indian yak (Bos grunniens). This is a significant milestone in livestock genetics and Himalayan biodiversity research.

Importance of Yaks: Indian yaks, “ships of the Himalayas,” are crucial for the livelihoods of high-altitude communities, providing meat, milk, fiber, fuel, and transport. They’re vital to mountain economies and biological models for cold adaptation.

ICAR-NRC on Yak’s Role: The ICAR-National Research Centre on Yak in Arunachal Pradesh led the genomic research. It’s the apex institution for yak research, covering health, nutrition, breeding, and genetic conservation.

Technological Advancement: Long-read sequencing and bioinformatics were used for precise gene mapping on chromosomes, improving understanding of disease resistance, milk quality, fertility, and climate adaptation traits.

Revolutionizing Yak Management: The genome is expected to revolutionize yak breeding programs and conservation efforts.It enables identification of genetic markers for cold tolerance, disease resistance, and milk production, ensuring long-term sustainability.

Comparative Genomics Benefits: Comparing the yak genome with other bovine species will help identify useful genes for biotic and abiotic stress tolerance, and quality traits.

Addressing Challenges: Yaks face challenges such as reduced grazing areas, climate change, disease, and genetic erosion. The genome will aid in sustainable yak populations across the Himalayan belt.

Socio-Economic Uplift: Findings will translate into practice, especially in conservation and sustainable development, ultimately leading to the socio-economic uplift of yak herders.

Supreme Court Intervention: The Supreme Court has directed a Madras High Court-formed committee to identify Agamic vs. non-Agamic temples in Tamil Nadu within three months.

Status Quo for Agamic Temples: The court mandated a “status quo” on identified Agamic temples, preventing new archakar (priest) appointments for the time being. This is due to petitions alleging the Tamil Nadu government was attempting to appoint “non-believers” as priests, contrary to Agamas.

Non-Agamic Temple Appointments: The state can proceed with filling existing archakar vacancies in non-Agamic temples after the identification process.

Committee Composition: The committee is headed by former Madras High Court judge Justice M. Chockalingam.

Rameswaram Temple: The court directed filling archakar and maniyam (temple workforce) vacancies in Rameswaram Ramanathaswamy Temple, following customs and traditions.

Agamic Temples’ Significance: Agamic temples are considered very important.

State’s Stance: The state aims to train Hindus, regardless of caste, to qualify as archakars under the Hindu Religious and Charitable Endowments Department.

Next Hearing: The next hearing is scheduled for September 2025.

Agamas Definition: Agamas are Hindu devotional scriptures describing temple construction, deity worship, and rituals. Many South Indian temples follow Agamic traditions.