25th May 2025-Current Affairs

1. A Good Monsoon: India’s Wet May 2024 – Geography

Why in News?

• May 2024 has been one of the wettest months in recent years, with 68.4% more rainfall than average.
• No major heatwaves or extreme temperatures reported across India.
• Rainfall patterns influenced by Western Disturbances and moisture-laden winds from the Arabian Sea, Bay of Bengal, and the Mediterranean.

Detailed Study Notes

1. Rainfall in May 2024: Unusually Wet Month

• 68.4% higher rainfall than the normal long-term average.
• 27 out of 36 meteorological subdivisions reported over 20% surplus rainfall.
• Contributing factors:
  • Western Disturbances (from the Mediterranean region).
  • Moisture-laden winds from:
    • The Bay of Bengal.
    • The Arabian Sea.

2. Absence of Heatwaves: Why It Matters

• Thunderstorms and cloud cover from continuous rain lowered temperatures, preventing heatwaves.
• Central and northern India—regions usually vulnerable to extreme heat—did not experience heatwaves.

Key Concept: Heat Lows in Northwest India

• Heat Lows = Low-pressure areas created by intense heating over northwestern India (e.g., Rajasthan, Punjab).
• Functions:
  1. Suction for Monsoon Winds: Draws in moist southwesterly winds from the Indian Ocean.
     • Example: Strong heat lows can accelerate monsoon onset.
  2. Drives Monsoon Circulation: Essential for forming the monsoon trough—a low-pressure zone crucial for rainfall.
  3. Influences Rainfall Quality:
     • Well-formed heat lows → Timely, widespread rain (good for agriculture).
     • Weak heat lows → Patchy/deficient monsoon (as in 2015).

3. El Niño and Indian Ocean Dipole (IOD) Effects on Monsoon

• El Niño = Warming of Pacific waters → weaker monsoon.
• Positive IOD = Warmer western Indian Ocean, cooler eastern → stronger monsoon winds.

4. Impact of a Good Monsoon on Food Inflation

5. Way Forward: Building Resilience

Climate-Smart Agriculture:

• Develop drought- and flood-resistant crops.
• Expand irrigation coverage.

Improved Weather Systems & Storage:

• Enhance real-time weather alerts.
• Expand storage to reduce post-harvest losses and stabilize prices.

Summary

• May 2024 saw record-high rainfall (68.4% surplus) due to western disturbances and moisture winds, with no major heatwaves across India.
• Heat lows in northwestern India are essential for monsoon dynamics—driving winds, rainfall spread, and intensity.
• Climate factors like El Niño (weakens monsoon) and IOD (strengthens monsoon) influence rainfall outcomes.
• A good monsoon ensures food security: boosts crop yields, reduces imports, stabilizes prices, and strengthens rural economies.
• Future preparedness requires climate-resilient agriculture, better weather forecasting, and robust storage infrastructure.

Exam Connect – Possible Questions

Prelims

1. Consider the following factors affecting the Indian monsoon:
1.Heat lows over northwest India
2.El Niño
3.Positive Indian Ocean Dipole (IOD)
Which of the above strengthens the Indian monsoon?
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2, and 3

Answer: b) 1 and 3 only
Heat lows and positive IOD strengthen the monsoon, while El Niño weakens it.

2. With reference to Indian monsoon patterns, which of the following statements is/are correct?
a) Heatwaves in northwest India strengthen the monsoon by creating low-pressure zones.
b) El Niño events typically lead to above-normal rainfall in India.
c) A positive IOD can offset the weakening impact of El Niño on the Indian monsoon.
d) A negative IOD event leads to increased rainfall over the Indian subcontinent.

Answer: a) and c) are correct; b) is incorrect—El Niño leads to below-normal rainfall.

Mains

1. Discuss the role of heat lows in the Indian monsoon system. How does their formation or absence impact the monsoon’s onset and intensity?

2. “A good monsoon is vital for India’s food security and inflation control.” Discuss with examples, highlighting the interlinkages between monsoon performance, agricultural production, and rural economy.

3. How do El Niño and Indian Ocean Dipole phenomena affect the Indian monsoon system? Illustrate with recent examples.

4. Suggest measures to strengthen India’s agricultural sector against the vagaries of the monsoon.

2. RBI Dividend Transfer to the Union Government – Economy

Why in News?

• The RBI has transferred a surplus (dividend) of ₹0.69 lakh crore (₹69,000 crore) to the Union Government for the financial year 2024-25.
• This is 27% higher than the previous year’s transfer (₹0.10 lakh crore or ₹10,000 crore).
• The transfer is a crucial source of non-tax revenue for the government, helping to bridge fiscal deficits and fund public expenditure.

Detailed Study Notes

1. What is an RBI Dividend?

• A dividend is the portion of profits distributed by an institution to its shareholders.
• In RBI’s case, the Government of India is its sole shareholder → so, all RBI profits go to the government.
• Legal Basis: Dividend transfers are governed by the Reserve Bank of India Act, 1934.

2. Why is the RBI’s Dividend Important for the Economy?

3. What Led to the Large Surplus in 2024-25?

4. What is the Economic Capital Framework (ECF)?

• Introduced after the Bimal Jalan Committee Report (2019).
• Balances:
  • The RBI’s need for adequate capital to manage risks (like global shocks, exchange rate volatility, etc.).
  • The government’s need for funds.
• Ensures RBI keeps a portion of profits as contingency reserves and transfers the rest to the government.

5. Dividend Yield: A Quick Concept

• Dividend Yield is a measure of the return from dividends relative to the stock price.
• Formula:

• While Dividend Yield is more relevant for listed companies (e.g., private corporations or public sector banks), it helps in understanding the general concept of how dividends relate to share price.
• For the RBI, this metric is not directly applicable because:
  • The Government of India is its sole shareholder.
  • There is no publicly traded share price.
• However, comparing this with other entities (like public sector banks) provides useful contextual understanding of dividend returns in the financial system.

Summary

• The RBI’s dividend transfer of ₹0.69 lakh crore for FY24-25 is a major fiscal support for the Union Government.
• It reflects:
  • Strong earnings from forex sales, interest income, and global market operations.
  • Calculations under the Economic Capital Framework to ensure financial stability.
• Such transfers are a vital non-tax revenue source that helps:
  • Fund public welfare programs.
  • Manage fiscal deficits.
  • Reduce dependency on borrowing or excessive taxation.

Exam Connect – Possible Questions

Prelims

1. Which of the following statements is/are correct regarding the RBI’s dividend transfer?

1. The RBI’s dividend is a form of non-tax revenue for the Union Government.
2. The Economic Capital Framework (ECF) guides the calculation of the RBI’s surplus.
3. Dividend Yield is directly relevant for the RBI’s dividend to the government.

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2, and 3

Answer: a) 1 and 2 only.
Dividend Yield is not directly applicable to the RBI as it has only one shareholder (the Govt.).

2. Which of the following factors contributed to the higher RBI surplus in 2024-25?

1. Increased sales of foreign exchange reserves.
2. Higher interest income from government securities.
3. Gains from forex market volatility.

a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2, and 3

Answer: d) 1, 2, and 3.

Mains

1. Explain the role of the RBI’s dividend transfer in India’s fiscal management. How does the Economic Capital Framework ensure a balance between fiscal needs and financial stability?

2. Critically analyze the impact of RBI’s surplus transfers on India’s budgetary process. Should the government rely heavily on such transfers for fiscal management?

3. Discuss the major sources of non-tax revenue for the Indian government, highlighting the significance of the RBI dividend in this context.

3.Northeast India as a Gateway for Trade with Southeast Asia – InternationaI Relations

Why in News?

• The Prime Minister recently emphasized that the eight Northeastern states are now “frontrunners of growth”, not just “frontier regions.”
• Investors are encouraged to explore economic opportunities in the region, including border trade, tourism, energy, and connectivity.

Detailed Study Notes

1. Northeast India: From Frontier to Frontrunner

• Earlier, the Northeast was seen as a peripheral or isolated region—a “frontier” with difficult terrain and security issues.
• Now, it’s envisioned as:
  • A hub of economic growth.
  • A gateway for trade under the Act East Policy.
  • A region rich in resources and cultural diversity.

2. Strategic Importance of the Northeast in India’s Foreign Policy

3. Economic Potential and Development Initiatives

4. Challenges Hindering Full Potential

5. Key Initiatives for Trade Integration

• Act East Policy: Strategic engagement with ASEAN countries.
• Trilateral Highway: India-Myanmar-Thailand project → improves overland trade routes.
• Kaladan Multimodal Transit Project: Links Kolkata port to Sittwe port (Myanmar) and inland waterway to NE India.
• Border Trade Hubs: Investment in logistics parks and border trade centers.
• Skill Development: Training in tourism, handicrafts, agro-processing.

6. Cultural and Economic Significance of the “Ashta Lakshmis”

Summary

• The Northeast is transitioning from a remote borderland to a strategic growth hub, offering a gateway to Southeast Asia.
• The Act East Policy leverages the region’s proximity to ASEAN to expand trade, connectivity, and diplomacy.
• Strategic projects like border trade hubs, trilateral highways, and energy investments aim to transform the region’s economy.
• Despite challenges like infrastructure deficits and security concerns, the Northeast holds immense potential for India’s foreign trade and regional integration.

Exam Connect – Possible Questions

Prelims

1.Which of the following countries share a border with India’s Northeast region?

1. Myanmar
2. Laos
3. Bangladesh
4. Vietnam

a) 1 and 2 only
b) 1 and 3 only
c) 1, 3, and 4 only
d) 1, 2, 3, and 4

Answer: b) 1 and 3 only.
Laos and Vietnam do not share direct borders with NE India.

2. Consider the following statements about the Act East Policy:

1. It focuses on enhancing economic and cultural ties with Southeast Asia.
2. The Kaladan Project is part of this policy.
3. It does not involve any land-based trade routes with Myanmar.

Which of the statements is/are correct?

a) 1 and 2 only
b) 1 only
c) 2 and 3 only
d) 1, 2, and 3

Answer: a) 1 and 2 only .
The Trilateral Highway under the Act East Policy connects India to Myanmar by land.

Mains

1. “The Northeast is not a periphery but a gateway.” Discuss the strategic importance of Northeast India in India’s trade relations with Southeast Asia.

2. Critically examine the role of the Act East Policy in transforming the Northeast region’s economic prospects. What are the key challenges and how can they be addressed?

3. Discuss the significance of infrastructure development in the Northeast for India’s Act East Policy. Highlight key projects and their expected impact.

4. Globally Important Agricultural Heritage Systems (GIAHS) – Environment

Why in News?

• The Food and Agriculture Organization (FAO) has recognized six new agricultural systems from Brazil, China, Mexico, and Spain as GIAHS sites.
• These systems highlight the role of traditional farming in biodiversity conservation, cultural heritage, and sustainable development.

Detailed Study Notes

1. What are GIAHS?

2. Newly Recognised GIAHS (2024)

3. India’s GIAHS Sites

4. Why are GIAHS Important?

5. GIAHS: Levels of Implementation

Summary

• Six new GIAHS sites have been added by FAO, recognizing traditional farming systems from China, Brazil, Mexico, and Spain.
• GIAHS preserves agrobiodiversity, cultural heritage, and rural livelihoods.
• India’s GIAHS sites include Koraput Traditional Agriculture, Kuttanad Below Sea-Level Farming, and Kashmir’s Saffron Heritage.
• GIAHS is crucial for sustainable agriculture, climate resilience, and global food security.

Exam Connect – Possible Questions

Prelims

1. Which of the following is/are features of a Globally Important Agricultural Heritage System (GIAHS)?

1. Conservation of agrobiodiversity.
2. Integration of traditional knowledge and cultural practices.
3. High-input, mechanized farming techniques.

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2, and 3
Answer: a) 1 and 2 only.
GIAHS promotes low-input, traditional farming, not high-input mechanization.

2. Match the following GIAHS sites with their countries:

a) 1-b, 2-a, 3-c
b) 1-c, 2-b, 3-a
c) 1-a, 2-b, 3-c
d) 1-b, 2-c, 3-a
Answer: a) 1-b, 2-a, 3-c

Mains

1. What is the significance of Globally Important Agricultural Heritage Systems (GIAHS) in promoting sustainable agriculture and rural livelihoods? Illustrate with global and Indian examples.

2. Discuss the challenges and opportunities in safeguarding traditional agricultural systems under the GIAHS framework in the context of climate change and market pressures.

3. How do GIAHS sites contribute to biodiversity conservation and cultural heritage preservation? Discuss with examples.

5. Zudpi Jungles Declared Forest Land: Supreme Court Ruling – Environment

Why in News?

• The Supreme Court of India has ruled that approximately 86,400 hectares of Zudpi Jungle lands in Eastern Vidarbha, Maharashtra should be treated as forest land.
• Existing structures like schools, homes, and offices built before 12th December 1996 can remain.

Detailed Study Notes

1. What are Zudpi Jungles?

2. Legal and Environmental Significance

Supreme Court Ruling

Legal Frameworks Involved

3. Why Are Zudpi Jungles Ecologically Important?

4. The Larger Impact of the Supreme Court’s Ruling

5. Broader Lessons for Environmental Governance

• Recognizing Ecological Value Beyond Trees: Even scrublands and barren-looking landscapes can be ecologically critical.
• Judicial Intervention: The Supreme Court’s proactive role in enforcing environmental protection when administrative action lags.
• Integrating Conservation into Land Use Planning: Classifying land based on ecological value, not just economic potential.

Summary

• The Supreme Court’s ruling classifies Zudpi Jungles of Eastern Vidarbha as forest land under the Forest (Conservation) Act, 1980.
• Despite sparse vegetation, these lands are ecologically vital as wildlife corridors and biodiversity hotspots.
• The decision aligns with the Godavarman case (1996), Doctrine of Public Trust, and Constitutional mandates (Article 21 & 48A).
• It demonstrates the judiciary’s role in environmental protection and highlights the need to recognize non-traditional forest areas for conservation.

Exam Connect – Possible Questions

Prelims

1.The term “Zudpi” refers to:

a) High-altitude alpine grasslands.
b) Shrubs and scrubland vegetation in Maharashtra.
c) Marshy wetlands in Eastern India.
d) Saline soil tracts in Gujarat.

Answer: b) Shrubs and scrubland vegetation in Maharashtra.

2. With reference to the Supreme Court’s ruling on Zudpi Jungles, consider the following statements:

1. Zudpi Jungles have been classified as forest land under the Forest (Conservation) Act, 1980.
2. All structures, regardless of date of construction, must be demolished.
3. The ruling is based on the Godavarman case and the Doctrine of Public Trust.

Which of the statements is/are correct?
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2, and 3

Answer: b) 1 and 3 only.

Mains

1. Explain the ecological significance of Zudpi Jungles in Maharashtra. How does the Supreme Court’s ruling balance environmental conservation with developmental needs?

2. Discuss the importance of the T.N. Godavarman case in shaping India’s forest conservation policies. How does it apply to the recent classification of Zudpi Jungles as forest land?

3. Do scrublands and degraded ecosystems like Zudpi Jungles deserve the same protection as dense forests? Critically examine, citing ecological and legal perspectives.

6. Keoladeo National Park: A Sanctuary for Birds and Turtles – Environment

Why in News?

• Keoladeo National Park in Bharatpur, Rajasthan, known as the “Paradise of Birds”, is now also recognized as a sanctuary for turtles—home to 8 out of 10 turtle species found in Rajasthan.

Detailed Study Notes

1. Location and Overview

2. Ecosystems and Biodiversity

Ecosystems

• Diverse habitats:
  • Woodlands (dry deciduous forest).
  • Swamps and marshes.
  • Wet grasslands and shallow lakes.

Flora

• Dominant trees:
  • Kadam (Neolamarckia cadamba)
  • Jamun (Syzygium cumini)
  • Babul (Acacia nilotica)
  • Kair (Capparis decidua)

Fauna (Birds)

Fauna (Turtles & Reptiles)

• Turtles: 8 out of 10 species in Rajasthan (e.g., Indian softshell turtle, Indian flapshell turtle).
• Other reptiles: Python, monitor lizard.
• Mammals: Blackbuck, spotted deer, nilgai, fishing cat.

3. Ecological and Conservation Significance

4. Legal and Conservation Status

5. Challenges

Summary

• Keoladeo National Park, a UNESCO World Heritage Site and Ramsar wetland, is a critical habitat for 360+ bird species and 8 out of 10 turtle species in Rajasthan.
• Located in Bharatpur, Rajasthan, the park hosts migratory and resident birds and serves as an ecological bridge on the Central Asian Flyway.
• Established as a hunting ground in the 19th century, it became a national park in 1981, highlighting India’s shift from exploitation to conservation.
• The park faces water scarcity, invasive species, and climate challenges, making it a priority for wetland conservation in India.

Exam Connect – Possible Questions

Prelims

1. Keoladeo National Park is located in:
a) Gujarat
b) Madhya Pradesh
c) Rajasthan
d) Uttar Pradesh

Answer: c) Rajasthan.

2. Which of the following statements is/are correct regarding Keoladeo National Park?

1. It is part of the Central Asian Flyway for migratory birds.
2. It is a designated UNESCO World Heritage Site.
3. It has no significance for reptile conservation.

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2, and 3
Answer: a) 1 and 2 only.
Statement 3 is incorrect – it is a significant site for turtle and reptile conservation.

7. Self-Reliant India (SRI) Fund Scheme: Powering MSMEs for Economic Growth – Economy

Why in News?

• As of March 2025, the SRI Fund has invested approximately ₹10,979 crore in 577 MSMEs across India.
• The highest number of investees are in:
  • Karnataka (151)
  • Maharashtra (144)
  • Delhi (69)

Detailed Study Notes

1. What is the Self-Reliant India (SRI) Fund?

2. Structure: Mother Fund + Daughter Funds Model

3. Why is SRI Fund Important?

4. Sectoral Focus

5. Revised Eligibility Criteria

6. Legal and Policy Framework

7. Geographical Distribution (March 2025)

Summary

• The Self-Reliant India (SRI) Fund is a key equity support mechanism for MSMEs in India.
• Launched in 2020 under the Atmanirbhar Bharat Package, it has a ₹50,000 crore corpus, with ₹10,000 crore contributed by the Government of India.
• Operates as a Category-II AIF, using a Mother-Daughter Fund model to provide equity and quasi-equity support.
• Focuses on innovation, manufacturing, services, R&D, and export-oriented MSMEs.
• Aims to bridge India’s ₹20 lakh crore MSME credit gap, reduce debt dependency, and fuel self-reliant economic growth.

Exam Connect – Possible Questions

Prelims

1. Which of the following correctly describes the Self-Reliant India (SRI) Fund?

1. It is a Category-I AIF registered with SEBI.
2. It aims to provide equity support to MSMEs.
3. It is managed by NSIC Venture Capital Fund Limited as the Mother Fund.

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2, and 3
Answer: b) 2 and 3 only.
It is a Category-II AIF, not Category-I.

2. With reference to the SRI Fund, consider the following statements:

1. The fund provides debt-based support to MSMEs.
2. It aims to reduce MSMEs’ reliance on debt by providing equity/quasi-equity.
3. The SRI Fund has a target corpus of ₹50,000 crore.

Which of the above statements is/are correct?

a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2, and 3
Answer: c) 2 and 3 only.
Statement 1 is incorrect; the SRI Fund providesequity/quasi-equity, not debt.

Mains

1. Discuss the significance of the Self-Reliant India (SRI) Fund in addressing the credit gap for MSMEs in India. How does the Mother-Daughter Fund model promote equitable economic growth?

2. “Equity funding is as important as credit for the growth of MSMEs.” Examine in the context of the Self-Reliant India Fund.

3. How does the Self-Reliant India Fund complement other government schemes for MSMEs like CGTMSE and ECLGS? Discuss with examples.