UPSC Daily Current Affairs: 13th March 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS3/Economy

Venture Capital in India – 2024 Overview

Why in News?

India's venture capital (VC) market saw a significant rebound in 2024, with total funding soaring to $13.7 billion, representing a 1.4x increase compared to 2023. This resurgence can be attributed to several regulatory reforms aimed at creating a more conducive investment ecosystem.

• Total VC funding in India reached $13.7 billion in 2024.
• Regulatory changes included the removal of the angel tax and a reduction in long-term capital gains tax rates.
• Streamlining the National Company Law Tribunal (NCLT) process and simplifying foreign venture capital investor registrations also contributed to the favorable environment.

Additional Details

• Venture Capital (VC): A crucial form of private equity financing aimed at startups and small businesses with high growth potential. It supports innovation and entrepreneurship by providing necessary capital.
• High-Risk, High-Reward: VC investments are inherently risky as they target unproven businesses but can yield substantial returns if the startup succeeds.
• Equity Stake: VCs acquire an equity stake in exchange for funding, aligning their interests with the company's growth.
• Active Involvement: Beyond funding, VCs often engage in mentorship and provide strategic guidance and networking opportunities.
• Stages of Funding: VC funding occurs at various stages, including seed funding, early-stage, and expansion-stage financing.
• In India, VC funds are regulated by the Securities and Exchange Board of India (SEBI) under the Alternative Investment Fund (AIF) Regulations, 2012.

The growth of venture capital in India underscores the importance of regulatory frameworks in fostering a healthy investment climate, which in turn supports economic development and innovation.

GS2/International Relations

Resolving the Vexatious Fishing Dispute

Why in News?

Recently, Bimal Rathnayake, the Leader of the House in Sri Lanka’s Parliament and the country’s Transport and Highways Minister, called on the Indian and Tamil Nadu governments to take decisive action against illegal fishing in Sri Lankan waters.

• The fishing dispute between India and Sri Lanka is influenced by various domestic factors.
• Both countries face pressures regarding the livelihoods of their fishermen, impacting foreign policy decisions.

Additional Details

• For India:
  • Livelihood Dependency and Economic Pressure: Thousands of fishermen in Tamil Nadu and Puducherry depend on fishing in the Palk Bay for their livelihoods. Limited fishing zones and dwindling fish stocks push them into Sri Lankan territory. For instance, fishermen from districts like Ramanathapuram and Nagapattinam frequently cross the International Maritime Boundary Line (IMBL) due to insufficient catch within Indian waters.
  • Political and Electoral Pressures: Regional parties in Tamil Nadu, such as the DMK and AIADMK, often highlight the fishing dispute to gain voter support, pressuring the central government to focus on this issue in foreign policy, especially during elections.
  • Legal and Regulatory Constraints: Indian laws like the Tamil Nadu Marine Fishing Regulation Act (1983) restrict the use of mechanized boats near the shore, which drives fishermen towards Sri Lankan waters due to limited fishing areas.
• For Sri Lanka:
  • Protection of Northern Province Fishermen’s Livelihoods: Sri Lankan Tamil fishermen depend on traditional fishing methods and are threatened by competition from Indian trawlers.
  • Post-Civil War Economic Recovery: The Northern Province is still recovering from civil war devastation, making the protection of local fishing areas crucial for economic stability.
  • Political and Nationalist Sentiments: There is pressure on the Sri Lankan government to adopt a strong stance against perceived violations of territorial waters, particularly from nationalist groups.

Resolving the “festering Palk Bay fisheries dispute” is deemed essential for the Tamil-speaking fishermen of Sri Lanka’s Northern Province. This includes:

• Protection of Livelihoods: Tamil-speaking fishermen rely on local marine resources, and illegal fishing by Indian trawlers threatens their income.
• Environmental Sustainability: Bottom trawling by Indian fishermen damages marine ecosystems, affecting fish breeding and long-term biodiversity.
• Socio-Economic Recovery Post-Civil War: Protecting fishing waters is vital for the Northern Province's long-term economic stability and community rebuilding efforts.

What Role Can India Play in Resolving the Palk Bay Fishing Dispute?

• Promoting Sustainable Fishing Practices: India can support its fishermen in adopting sustainable fishing methods to mitigate the impact of bottom trawling in Sri Lankan waters.
• Facilitating Bilateral Talks: India can mediate talks between fishermen from both countries to promote dialogue and seek mutually beneficial solutions, similar to the fishermen-level talks supported in 2016.
• Strengthening Legal and Diplomatic Cooperation: India can enhance legal frameworks and diplomatic channels to enforce maritime boundaries while safeguarding the rights of its fishermen.

In conclusion, addressing the fishing dispute is crucial for both nations, considering the intertwined livelihoods and socio-economic conditions of their respective fishermen.

GS3/Economy

The Online Gaming Sector: A Growing Opportunity

Why in News?

The Economic Survey 2024-25 has emphasized the need for accelerating the deregulation agenda and urged the government to step back, allowing businesses to operate freely.

• The Indian online gaming industry has shown significant growth, with the potential to lead the global skill-based gaming market.
• The sector, valued at ₹33,000 crore in 2023, is projected to grow at a CAGR of 14.5%, reaching ₹66,000 crore by 2028.
• High taxation and regulatory challenges are hindering this growth and threatening the viability of businesses in the sector.

Additional Details

• Market Potential: India boasts over 650 million smartphone users and a young demographic, making it a strong contender in the skill-based gaming arena. The industry is expected to create 2-3 lakh new jobs, supplementing the 2 lakh jobs already established.
• Burden of High Taxation: The sector faces a 28% Goods and Services Tax (GST), similar to that imposed on gambling, which does not acknowledge the distinction between skill-based gaming and gambling. This has led to a retrospective tax demand of ₹1.12 lakh crore on gaming companies, jeopardizing smaller startups.
• Legal Confusion: Attempts by state governments to ban online gaming, equating it with gambling, have resulted in legal disputes. Courts have ruled in favor of online gaming, affirming that "games of skill" should not be classified as gambling. The Supreme Court has also stayed the retrospective GST demand in 2025, yet regulatory uncertainty persists.
• Challenges Faced:
  • Excessive taxation makes Indian gaming companies less competitive globally.
  • Legal uncertainty due to frequent bans creates an unpredictable business environment.
  • The lack of a clear distinction between gaming and gambling fuels regulatory confusion.
  • Small startups are threatened by high taxation and compliance costs.
  • Strict regulations may drive users towards illegal offshore gambling platforms.

The online gaming sector in India has immense potential for economic growth, job creation, and technological advancement. However, burdensome taxation and inconsistent regulations pose significant obstacles. It is crucial for the government to find a balance between regulation and growth to ensure the sector's success in the global market.

GS3/Science and Technology

NASA Successfully Launches Twin Missions to Study Sun and Universe History

Why in News?

NASA has successfully launched the SPHEREx and PUNCH space missions from California after facing multiple delays. These missions aim to enhance our understanding of the solar system and the universe.

• The SPHEREx mission will create a detailed 3D map of the universe.
• The PUNCH mission will capture 3D images of the solar corona and improve space weather predictions.

Additional Details

• SPHEREx: This space telescope has entered a sun-synchronous orbit 650 km above Earth. It will collect data from 450 million galaxies and 100 million stars, contributing to a comprehensive 3D sky map that explores the history of the universe.
• Creating the Most Colorful Map of the Cosmos: SPHEREx will map the universe using both optical and infrared light. While human eyes perceive optical light, infrared light reveals details such as distant galaxies and star formation. This mission is distinct from the James Webb Space Telescope (JWST), as SPHEREx will scan the entire sky every six months across 102 infrared colors.
• Studying Cosmic Inflation: The mission aims to provide insights into cosmic inflation, a rapid expansion of the universe that took place 14 billion years ago. By mapping the positions of 450 million galaxies, SPHEREx will aid scientists in testing theories about the universe's origins.
• Identifying Life-Forming Molecules: SPHEREx will search for essential biogenic molecules such as carbon, hydrogen, and oxygen in icy particles throughout the Milky Way. Understanding their distribution may reveal how these molecules contributed to the emergence of life.
• PUNCH: This solar mission consists of four small satellites that were deployed shortly after launch. It aims to provide the first 3D imaging of the solar corona using polarized light, which helps in understanding solar winds and coronal mass ejections (CMEs).
• Importance for Space Weather Prediction: Data from PUNCH will help improve predictions of space weather, which can disrupt satellite communications and power grids on Earth.
• High-Resolution Imaging: PUNCH will utilize three Wide Field Imagers and one Narrow Field Imager to capture images of the sun's corona every four minutes, creating detailed 3D maps of solar wind structures.
• Understanding Solar Wind and CMEs: The mission will identify the origins of solar winds and CMEs, aiding in timely space weather forecasting and understanding of the forces in the solar corona.
• Unique Virtual Instrument Approach: PUNCH employs a four-camera system that operates as a single virtual instrument, generating large-scale imagery data for an unprecedented 3D view of the sun's outer atmosphere.

In conclusion, the successful launch of SPHEREx and PUNCH marks a significant advancement in space exploration, offering new opportunities to explore the universe's history and improve our understanding of solar phenomena.

GS3/Science and Technology

Bharat 6G Alliance

Why in News?

The Prime Minister has unveiled India's vision for 6G technology, termed the "Bharat 6G Vision," which aims for India to become a leading force in the design, development, and deployment of 6G technology by the year 2030.

• The Bharat 6G Alliance (B6GA) is a collaborative initiative to establish India's leadership in 6G technology.
• It comprises public and private enterprises, academic institutions, research organizations, and standardization bodies.

Objectives of B6GA

• Foster Global Collaboration: Collaborate with international 6G alliances to exchange knowledge and best practices.
• Develop India-Centric 6G Use Cases: Identify significant industry applications that align with India's socio-economic context.
• Drive High-Impact Research & Development: Promote innovative research in terahertz communications, AI-driven networks, and quantum-enabled security.
• Standardization & Spectrum Identification: Engage in shaping global 6G standards through active involvement in the International Telecommunication Union (ITU) and World Radiocommunication Conferences (WRC-27).

Operationalization of 6G Technology

The Bharat 6G Project is organized into two primary phases:

• Phase 1 (2023-2025):
  • Conduct exploratory research on advanced telecom technologies.
  • Perform proof-of-concept testing in research laboratories.
  • Explore risky and innovative pathways in wireless communication.
• Phase 2 (2025-2030):
  • Focus on the creation of intellectual property (IP) for India-led 6G innovations.
  • Implement testbeds that will lead to large-scale commercialization of 6G technology.

Spectrum Allocation

The International Telecommunication Union (ITU) is currently assessing new spectrum bands for 6G, which include:

• 4400-4800 MHz
• 7125-8400 MHz
• 14.8-15.35 GHz

The final decision regarding these spectrum bands will be made at the upcoming World Radiocommunication Conference in 2027 (WRC-27). Presently, the spectrum bands from 600 MHz to 26 GHz are allocated for IMT (2G-6G) services in India.

Previous Year Question (PYQ)

With reference to communication technologies, what is/are the difference/differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?

• 1. LTE is often marketed as 3G, while VoLTE is marketed as advanced 3G.
• 2. LTE is a data-only technology, whereas VoLTE is designed for voice calls.
• 3. VoLTE requires an IP Multimedia Subsystem (IMS) network for facilitating voice calls.

Select the correct answer using the code given below:

• (a) 1 only
• (b) 2 and 3 only
• (c) 1 and 3 only
• (d) Neither 1 nor 2

This structured approach enables clearer comprehension of India's strategic direction in advancing 6G technology through the Bharat 6G Alliance.

GS2/Polity

Overseas Citizen of India (OCI)

Why in News?

Prime Minister Narendra Modi recently presented the Overseas Citizen of India (OCI) card to Mauritius' Prime Minister Navinchandra Ramgoolam, describing it as a "proof of friendship" between the two nations. This gesture highlights the significance of the OCI scheme, which was introduced in 2005 through an amendment to the Citizenship Act of 1955, aimed at allowing certain foreign nationals of Indian origin to register as OCIs.

• The OCI card provides several privileges akin to those of Indian citizens.
• OCIs do not possess full citizenship rights in India.

Eligibility for OCI Registration

• Citizenship: Foreign nationals who were citizens of India at the time of or after the commencement of the Indian Constitution (26 January 1950).
• Eligible Persons: Individuals who were eligible to become citizens of India on 26 January 1950.
• Descendants: Children, grandchildren, or great-grandchildren of such citizens.
• Minor Children: Minor children of the aforementioned individuals.
• Spousal Eligibility: Spouses of Indian citizens or OCI cardholders (subject to certain conditions).
• However, individuals whose parents, grandparents, or great-grandparents were citizens of Pakistan, Bangladesh, or other specified countries are ineligible for OCI registration.

Benefits of OCI

• Visa-Free Travel: OCI cardholders are entitled to a multiple-entry, multipurpose lifelong visa to visit India.
• Residency Rights: They can reside and work in India indefinitely.
• Economic Rights: OCI holders enjoy parity with Non-Resident Indians regarding economic, financial, and educational facilities, except in acquiring agricultural land or plantation properties.
• Exemptions: They do not need to register with the Foreigners Regional Registration Office (FRRO) irrespective of their stay duration.

Restrictions on OCI

• No Political Rights: OCI cardholders cannot vote or hold constitutional offices (e.g., President, Vice-President, or Supreme Court judges).
• OCI holders are not eligible for public service appointments unless specified by the Central Government.
• No Agricultural Land: OCI cardholders cannot acquire agricultural or plantation properties in India.
• Revocation: The OCI card can be revoked if the holder violates Indian laws or engages in activities detrimental to India's interests.

OCI vs. Dual Citizenship

• Dual Citizenship: India does not permit dual citizenship as per the Citizenship Act of 1955.
• OCI is not dual citizenship; it is a form of permanent residency with limited rights.
• OCI cardholders maintain their foreign citizenship while enjoying certain benefits in India.

In summary, the Overseas Citizen of India (OCI) card serves as a bridge for individuals of Indian origin living abroad, allowing them to maintain connections with India while providing a framework for residency and certain privileges.

GS3/Environment

The Dangerous Illusion Cast by Development Rankings

Why in News?

California's devastating wildfires serve as a stark reminder of the consequences tied to unsustainable development models. With economic damages estimated at around $250 billion, these disasters underscore the hidden costs associated with the lifestyles of industrialized nations. The modern approach to development, often represented by indices such as the Human Development Index (HDI), promotes an aspirational model that frequently overlooks its significant ecological impacts. Thus, there is a pressing need to examine the shortcomings of existing development metrics, the environmental ramifications of high-income nations' consumption patterns, and the potential of alternative models.

• Traditional development metrics like HDI ignore environmental sustainability.
• High rankings in HDI can create a false sense of replicability in development models.
• The Planetary Pressures-adjusted HDI (PHDI) addresses some issues but remains insufficient.
• Alternative development models from middle-income countries offer viable pathways.
• True progress must prioritize ecological limits and social equity over mere economic growth.

Additional Details

• Flaws of Traditional Development Metrics: HDI ranks countries primarily on human well-being indicators without accounting for the ecological footprint of these outcomes. For instance, while nations like Norway and Switzerland rank highly, they are also among the top resource consumers and carbon emitters per capita.
• The PHDI's Limitations: Introduced to adjust HDI scores downward for ecological footprint, the PHDI still ranks countries relative to each other, failing to address absolute ecological limits. Countries with high consumption may remain at the top due to the worse performance of others, obscuring the reality of ecological overshoot.
• Environmental Costs: High-income nations have surpassed multiple planetary boundaries, including greenhouse gas emissions and pollution, leading to climate-related disasters. This disconnect highlights the urgent need to reassess what constitutes progress.
• Middle-Income Countries as Models: Countries like Costa Rica and Sri Lanka provide examples of achieving significant human development without excessive ecological harm. They demonstrate that sustainable policies can lead to high well-being while preserving environmental health.

The traditional models of development, primarily endorsed by high-income nations, are fundamentally flawed as they disregard the environmental degradation required to sustain them. The HDI and the modified PHDI fail to accurately measure true progress since they overlook absolute ecological limits. Moving forward, developing nations must explore alternative pathways that balance economic growth with environmental responsibility, ensuring that all citizens can achieve a dignified life within the planet's ecological limits.

GS3/Environment

NATIONAL BOARD FOR WILDLIFE

Why in News?

Prime Minister Narendra Modi recently chaired his first meeting of the National Board for Wildlife (NBWL) after more than ten years in office. The last full meeting was held on September 5, 2012, under the leadership of former Prime Minister Manmohan Singh. The Prime Minister serves as the ex officio chairman of the NBWL.

• The NBWL was established in 2003 through an amendment to The Wild Life (Protection) Act, 1972.
• This board is responsible for framing policies regarding wildlife, conserving wildlife and forests, and recommending the establishment of new national parks and sanctuaries.
• The board consists of 47 members, including the Prime Minister as chairperson and the Union environment minister as vice-chairperson.
• A standing committee within the NBWL is tasked with appraising projects located on forest lands near national parks and sanctuaries.

Additional Details

• Standing Committee: This committee is delegated with critical tasks, such as evaluating projects within 10 kilometers of protected areas. However, its recommendations can be overridden by the environment ministry.
• The NBWL has faced criticism for approving several controversial projects in wildlife habitats, including the Ken Betwa river linking project and oil exploration in the Hollongapar Gibbon sanctuary.
• Since the BJP assumed power in 2014, the NBWL has been restructured, leading to concerns over the dilution of its powers, with fewer non-governmental members compared to the previous administration.

The recent discussions around the NBWL highlight the ongoing challenges in balancing wildlife conservation with developmental projects, raising questions about the effectiveness and impartiality of wildlife governance in India.

GS3/Economy

Wine Production in India

Why in News?

Despite the high tariff rates of up to 150% that India imposes on European wines, Italy views the Indian market, along with China, as a significant opportunity for its renowned wines.

• Wine constitutes only 2% of India's alcohol market, while whiskey and beer dominate, making up 98%.
• Per capita wine consumption in India is a mere 9 ml, which is only 1/8000th of France's consumption.
• The domestic wine market is growing at an annual rate of 20-30%, driven by urban demand.
• Major cities like Mumbai, Goa, Bengaluru, and Delhi-NCR account for 70% of total wine consumption.

Additional Details

• Leading Wine Regions:
  • Nashik, Maharashtra: Known as the "Wine Capital of India," it produces over 80% of the country's wine, benefiting from semi-sandy soil and dry winters.
  • Nandi Hills, Karnataka: Features a cooler climate and high altitude, favorable for premium wine production.
  • Himachal Pradesh & Tamil Nadu: Emerging as high-altitude viticulture hubs.
• Types of Grapes Used in Indian Wines:
  • Red Wine Grapes: Cabernet Sauvignon, Merlot, Shiraz, Pinot Noir.
  • White Wine Grapes: Chardonnay, Sauvignon Blanc, Chenin Blanc.
  • Indian Varieties: Anab-e-Shahi, Bangalore Blue, Thompson Seedless.
• Industry Events: Events such as the Nashik Wine Festival and Bengaluru Wine Festival attract tourists and wine enthusiasts, boosting vineyard tourism and supporting the rural economy in regions like Nashik and Nandi Hills.
• Wineries: India has over 110 wineries, with Sula Vineyards being the largest, producing over 1 million cases annually.

The revival of India's wine industry in the 1980s and 1990s has led to significant vineyard expansion, establishing viticulture as a key agricultural activity in the country.

GS3/Economy

Understanding Recession

Why in News?

Recent events have seen a downturn in US stock markets, increased discussions surrounding tariffs, and a survey indicating a pessimistic outlook among American consumers. This backdrop has led to debates about the potential for a recession in the US economy, despite reassurances from economic advisers to President Donald Trump dismissing such claims.

• A recession occurs when the GDP contracts over a significant period.
• The business cycle consists of alternating phases of expansion and recession.
• The National Bureau of Economic Research (NBER) defines recession based on a variety of economic factors beyond just GDP.

Additional Details

• Definition of Recession: A recession is commonly understood to be a sustained period of economic decline, typically marked by a decrease in the GDP over two consecutive quarters.
• The NBER assesses various indicators, including employment and consumption, to determine the onset and duration of a recession, focusing on the depth, diffusion, and duration of economic activity decline.
• Moreover, the term "technical recession" is used to describe a scenario where GDP contracts for two successive quarters.

In summary, while the definition of a recession can vary, the consensus among economists highlights the importance of multiple economic indicators, not just GDP, in evaluating the overall health of an economy.

GS2/International Relations

MAHASAGAR: Vision for the Global South

Why in News?

The Prime Minister of India, Narendra Modi, announced the 'MAHASAGAR' initiative (Mutual and Holistic Advancement for Security and Growth Across Regions) during his visit to Mauritius in March 2025. This initiative outlines India's enhanced vision for security and development across various regions.

• MAHASAGAR aims to strengthen security, trade, and development cooperation.
• It builds upon India's previous SAGAR (Security and Growth for All in the Region) policy focused on the Indian Ocean Region (IOR).
• Addresses the growing influence of China in the Indo-Pacific and Indian Ocean through India-led cooperation models.
• Positions India as a champion of the Global South, advocating for their representation in global policymaking.

Additional Details

• Core Pillars of MAHASAGAR:
  • Trade for Development: Enhancing economic ties through technology-sharing and trade facilitation.
  • Capacity Building for Sustainable Growth: Supporting nations with infrastructure, education, and economic partnerships.
  • Mutual Security for a Shared Future: Strengthening regional security, maritime cooperation, and defense ties.
• Geographic Scope: Focuses on the Global South, Indo-Pacific, Africa, and Latin America.
• Strategic Partnerships: Involves countries like Mauritius, Seychelles, Maldives, and expands to Africa, ASEAN, Latin America, and Pacific Island Nations.
• Security & Defense Cooperation: Includes anti-piracy efforts, maritime domain awareness, and joint naval exercises.
• Economic & Developmental Focus: Emphasizes blue economy, infrastructure development, and trade corridors in the IOR.
• Diplomatic Strategy: Advocates for regional cooperation through IORA and BIMSTEC, representing the Global South in G20, BRICS, and other UN initiatives.

In summary, MAHASAGAR represents a significant expansion of India's strategic vision, seeking to enhance security and development cooperation while positioning itself as a leader in representing the interests of the Global South on the world stage.