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CURRENT AFFAIRS: CABINET APPROVALS
I. Cabinet approves Signing and ratification of Bilateral Investment Treaty between India and the United Arab Emirates
- The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval for signing and ratification of the Bilateral Investment Treaty between the Government of the Republic of India and the Government of the United Arab Emirates.
- The Treaty is expected to improve the confidence of the investors, especially large investors, increasing Foreign Investments and Overseas Direct Investment (ODI) opportunities and this may have a positive impact on employment generation.
- The approval is expected to increase investments in India and is likely to help in realizing the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, increasing exports etc.
II. Cabinet approves extension of Animal Husbandry Infrastructure Development Fund
- The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the continuation of the Animal Husbandry Infrastructure Development Fund (AHIDF) to be implemented under the Infrastructure Development Fund (IDF) with an outlay of Rs.29,610.25 crore for another three years up to 2025-26.
- The scheme will incentivize investments in Dairy processing and product diversification, Meat processing and product diversification, Animal Feed Plant, Breed multiplication farm, Animal Waste to Wealth Management (Agri-waste management) and Veterinary vaccine and drug production facilities.
- The Government of India will provide 3% interest subvention for 8 years including two years of the moratorium for loans up to 90% from the scheduled bank and National Cooperative Development Corporation (NCDC), NABARD and NDDB.
- The eligible entities are individuals, Private Companies, FPO, MSME, Section 8 companies. Now the Dairy Cooperatives will also avail benefits for modernization, strengthening of the dairy plants.
- Government of India will also provide credit guarantee to the MSME and Dairy Cooperatives up to the 25% of the credit borrowed from the Credit Guarantee Fund of Rs.750 crore.
III. Cabinet approves marketing margin for supply of Domestic gas to Fertilizer (Urea) for the Period May 2009 – November 2015
- The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval for determination of Marketing Margin on supply of domestic gas to Fertilizer (Urea) Units for the period from May 1, 2009 to November 17, 2015.
- This approval is a structural reform. Marketing Margin is charged by gas marketing company from consumers over and above the cost of gas for taking on the additional risk and cost associated with marketing of gas.
- Government had previously determined marketing margin on supply of domestic gas to urea and LPG producers in 2015.
- The approval will provide additional capital to the various Fertilizer (Urea) Units for the component of marketing margins paid by them on domestic gas procured during the period 01.05.2009 to 17.11.2015, based on rates already being paid from 18.11.2015 onwards.
- In line with government vision of AatmaNirbhar Bharat, this approval will incentivize manufacturers to increase investment.
- The increased investment will lead to self-sufficiency in fertilizers, and provide an element of certainty for future investments in gas infrastructure sector.
IV. Cabinet approves Scheme of Sugar Subsidy for AAY Families under PDS
- The Union Cabinet chaired by Prime Minister Shri Narender Modi approved extension of scheme of sugar subsidy for Antyodya Anna Yojna (AAY) families distributed through the Public Distribution Scheme (PDS) for two more years i.e. 31 March 2026.
- As another indication of unwavering commitment of Central Government to wellbeing of citizens of the country and ensuring sweetness of platter of the poorest of the poor in the country, the Scheme facilitates access of sugar to the poorest of the poor and adds energy to their diet so that their health improves.
- Under the Scheme, the Central Government gives subsidy of Rs.18.50 per kg per month of sugar to AAY families of participating States.
- The approval is expected to extend benefits of more than Rs.1850 crore during period of 15th Finance Commission (2020-21 to 2025-26).
- The scheme is expected to benefit about 1.89 crores AAY families of the country.
- Government of India is already giving free ration under Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY).
- Sale of ‘Bharat Atta’, ‘Bharat Dal’ and Tomatoes and Onions at affordable and fair prices are the measures to ensure sufficient food in the Plate of citizens beyond PM-GKAY also.
- So far, about 3 Lakh Tons of Bharat Dal (Chana dal) and about 2.4 Lakh Ton of Bharat Atta have already been sold, benefitting ordinary consumers.
- Thus, availability of subsidized dal, atta and sugar has completed the food for a common citizen of India fulfilling Modi ki Guarantee of ‘Food for All, Nutrition for All’.
- With this approval, the Government will continue giving subsidy to participating States for the distribution of sugar to AAY families through PDS at the rate of One kg per family per month.
- States have the responsibility to procure and distribute sugar.
V. Cabinet approves continuation of Scheme for Rebate of State and Central Taxes and Levies for export of Apparel/Garments
- The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the continuation of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for the export of Apparel/Garments and Made ups upto 31st March 2026.
- Continuation of the Scheme for proposed two (2) years will provide stable policy regime which is essential for long term trade planning, more so in the textiles sector where orders can be placed in advance for long term delivery.
- The continuation of RoSCTL will ensure predictability and stability in policy regime, help remove the burden of taxes and levies and provide level playing field on the principle that “goods are exported and not domestic taxes”
- The Union Cabinet had approved the scheme up to 31.03.2020 and further approval was given for continuation of RoSCTL till 31st March 2024.
- The present extension up to 31st March 2026 helps in enhancing export competitiveness of garments and made-ups sectors.
- It makes apparel/garments and Made ups products cost-competitive and adopt the principle of zero-rated export.
- The other textile products (excluding Chapter 61, 62 and 63) not covered under the RoSCTL, are eligible to avail the benefits under RoDTEP along with other products.
- The objective of the scheme is to compensate for the State and Central Taxes and Levies in addition to the Duty Drawback Scheme on export of apparel/ garments and Made-ups by way of rebate.
- It is based on an internationally acceptable principle that taxes and duties should not be exported, to enable a level playing field in the international market for exports.
- Hence, not only indirect taxes on inputs are to be rebated or reimbursed but also other un-refunded State & Central taxes and levies are to be rebated.
CURRENT AFFAIRS: NATIONAL NEWS
Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi launches C-CARES, web portal of CMPFO
- Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi launched a web portal of CMPFO namely C- CARES developed and designed by the Centre for Development of Advanced Computing (C-DAC), an R&D organization under the Ministry of Electronics and Information Technology on 31st January, 2024.
- This marks a significant leap in the digitization journey of CMPFO aiming to address the long-standing issue of digitizing its records and work processes
- Coal Mines Provident Fund Organization (CMPFO) is an autonomous organization under the aegis of the Ministry of Coal established in the year 1948 for administering Provident Fund and Pension schemes for the purpose of providing social security to the coal sector workers.
- The Organization is presently rendering services to about 3.3 lakh Provident Fund subscribers and 6.1 lakh pensioners of coal sector.
- At present, CMPFO processes settlement claims of Provident Fund subscribers and pensioners manually.
- With launch of the portal, settlement of PF and pension claims will now be processed and settled online.
- It will facilitate faster processing, transparency in operations, better record management and monitoring.
- It will also instil confidence in the subscribers and pensioners.
- The portal being a public service platform is intended to benefit the CMPF subscribers who are working in the coal sector as well as its pensioners.
- The digital transformation is aligned with the vision of a Digital India championed by Prime Minister Shri Narendra Modi.
- The inauguration ceremony was a momentous occasion, symbolizing the commitment of CMPFO and the Ministry of Coal to embrace digital transformation for the benefit of all stakeholders.
Union Minister of Coal, Mines and Parliamentary Affairs, Shri Pralhad Joshi inaugurated three CSR initiatives of Coal India Limited
- Union Minister of Coal, Mines and Parliamentary Affairs, Shri Pralhad Joshi inaugurated three initiatives being undertaken as Corporate Social Responsibility of Coal India Limited (CIL) in collaboration with Educational Consultants Limited (EDCIL), National Skill Development Corporation and TATA STRIVE on 31st January,2024.
- It marks a watershed step to fulfil Prime Minister Shri Narendra Modi’s vision of ‘Viksit Bharat’ and ‘Digital Bharat’.
- On this auspicious occasion, Secretary, Ministry of Coal Shri Amrit Lal Meena, Additional Secretary, Ministry of Coal, Ms. Rupinder Brar and other dignitaries were also present.
- The Memorandum of Understanding (MoU) signed between Coal India Limited (CIL) and Educational Consultants India Limited (EDCIL)aims to provide digital education through smart classrooms and computer laboratory up to 12th standard schools in Coal Bearing States.
- It is estimated that 200 schools will be benefited and estimated CSR expenditure is to be incurred Rs. 27.08 Crores.
- A thousand smart classrooms have already been equipped under the CSR initiative of the Government Coal Companies.
- To provide the skills to the youth of communities around the coalfield, Coal India Limited (CIL) has signed a Memorandum of Understanding with National Skill Development Corporation (NSDC) to establish multi-skilled development institutes in each subsidiary of Coal India Limited (CIL).
- The overarching purpose is to equip the youth with requisite skills on the basis of baseline survey and market requirements.
- The multi-skill development institutes will be operationalised in Central Coal Limited (CCL) and Bharat Coking Coal Limited (BCCL) in 2024-25 on pilot basis, and subsequently will be scaled up in other Coal India Limited (CIL) subsidiaries.
Shri Dharmendra Pradhan launches MoE – AICTE Investor Network
- Union Minister for Education and Skill Development & Entrepreneurship, Shri Dharmendra Pradhan launched ‘Ministry of Education – AICTE Investor Network’ in New Delhi.
- Secretary, Higher Education, Ministry of Education, Shri K. Sanjay Murthy; Chairman, AICTE, Prof. T.G. Sitharam; Vice Chairman, AICTE, Dr. Abhay Jere; Chairman, National Educational Technology Forum NBA NAAC, Prof. Anil Sahasrabudhe and other dignitaries were also present at the event.
- The MoE – AICTE Investor Network is a ground-breaking initiative jointly established by AICTE and the Ministry of Education’s Innovation Cell (MIC) with a vision to foster innovation and entrepreneurship in the education sector.
- The network aims to provide crucial financial support, mentoring, and strategic guidance to early-stage student or faculty-led startups.
- Through this unique network, the Ministry of Education seeks to encourage private investment in student- and faculty-led startups.
- The platform aligns with the vision of Prime Minister Shri Narendra Modi to create a vibrant ecosystem for innovation and entrepreneurship.
- The MoE-AICTE Investor Network is launched to empower educational institutions to become innovation hubs, fostering a conducive environment for start-up development, facilitate entrepreneurship by transforming innovative ideas into scalable and sustainable businesses and providing startups with essential resources, mentorship, seed capital, and potential investors.
- This Investor Network further aims to bridge the gap between investors and transformative educational initiatives, fostering collaboration for the advancement of education and technology.
Budget 2024 Key Highlights:
- The Interim Union Budget for the financial year 2024-25 was tabled in the Parliament by Finance Minister Nirmala Sitharaman.
- This was the sixth budget presented by the current FM and the last one of Prime Minister Narendra Modi-led government’s second term.
- The budget focused on fiscal consolidation, infra, agri, green growth, and railways.
- However, no changes were made in the tax rates, which was a disappointment to salaried individuals.
- The Fiscal Deficit target for FY25 was set at 5.1 percent of the GDP, better than expected, while the FY24 target was also revised down to 5.8 percent.
- Meanwhile, the capex target of FY25 was increased by 11.1 percent to ₹11.1 lakh crore.
- Key features of the budget are a focus on infrastructure, tourism, logistics, and innovation in research.
- All these measures will bring continuous sustainable growth to the economy.
- This shows the continued commitment of the existing government to move towards bringing fiscal prudence and reaching the targeted fiscal deficit of 4.5 percent of GDP by FY26
Income Tax
- The Finance Minister reports a significant milestone, citing a doubling of tax collections over the past decade. Notably, the current budget maintains the status quo in both direct and indirect taxation, including import duties.
- Companies may find this predictability beneficial in navigating their financial planning, fostering a more secure and sustainable business environment
- Do not propose any changes in tax rates in direct and indirect taxes including import duties
Infrastructure Development
- Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in a huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased by 11.1 percent to 11.11 lakh crore, announced the FM.
- This is 3.4 percent of the GDP.
Railways
- FM Sitharaman announced that 40,000 normal rail bogies will be converted to Vande Bharat to enhance the safety, convenience, and comfort of passengers. Key rail infrastructure projects including Metro Rail and Namo Bharat will be expanded to more cities.
- Also, 3 major railway corridors were also announced – the port connectivity corridor, the energy, mineral, and cement corridor, and the high traffic density corridor.
- The resultant decongestion of the high-traffic corridors will also help in improving the operations of passenger trains, resulting in safety and higher travel speed for passengers.
‘Lakhpati Didi’ Scheme
- FM announced that eighty-three lakh SHGs (self-help groups) with nine crore women are transforming the rural socio-economic landscape with empowerment and self-reliance. Their success has assisted nearly one crore women to become ‘Lakhpati Didi’ already. Buoyed by the success, it has been decided to enhance the target for ‘Lakhpati Didi’ from 2 crore to 3 crore.
- The Lakhpati Didi Scheme, aiming to empower two crore women in villages, has achieved notable success by reaching 83 lakh self-help groups and benefiting 9 crore women. With a financial injection of ₹1 lakh per household for one crore beneficiaries, this initiative is poised to significantly uplift the economic status of rural women.
Electricity
- Through roof-top solarisation, 10 million households will be enabled to obtain up to 300 units of free electricity every month.
- This scheme follows the resolve of the Prime Minister on the historic day of the consecration of Shri Ram Mandir in Ayodhya.
- This will help save up to ₹15,000-18,000 annually for households from free solar electricity and selling the surplus to the distribution companies, noted Sitharaman.
Green Energy
- Towards meeting the commitment to ‘net zero’ by 2070, the following measures were announced.
- Viability gap funding will be provided for harnessing offshore wind energy potential for the initial capacity of one giga-watt.
- Coal gasification and liquefaction capacity of 100 MT will be set up by 2030. This will also help in reducing imports of natural gas, methanol, and ammonia.
- Phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes will be mandated.
- Financial assistance will be provided for procurement of biomass aggregation machinery to support collection.
Electric vehicles
- The government will expand and strengthen the EV ecosystem by supporting manufacturing and charging infrastructure,
- Greater adoption of e-buses for public transport networks will be encouraged through payment security mechanisms
Tourism
- FM announced that states will be encouraged to take up comprehensive development of iconic tourist centers’ branding and marketing at a global scale.
- A rating system based on the quality of facilities and services will be established. Long-term interest-free loans will be provided to states for financing these developments.
- Projects for port connectivity, tourism infrastructure, and amenities will be taken up on our islands, including Lakshadweep.
- This will help in generating employment as well
Promoting investments
- The FDI inflow during 2014-23 was $596 billion marking a golden era.
- That is twice the inflow during 2005-14.
- For encouraging sustained foreign investment, the government is negotiating bilateral investment treaties with foreign partners, in the spirit of ‘first develop India
Technology
- New-age technologies and data are changing the lives of people and businesses. They are also enabling new economic opportunities and facilitating the provision of high-quality services at affordable prices for all, including those at the ‘bottom of the pyramid
Ayushman Bharat
- Ayushman Bharat cover will be extended to all Anganwadi and Asha workers, Finance Minister Sitharaman announced.
- All maternal and child healthcare schemes will be brought under one comprehensive scheme.
PM Awas Yojana
- Despite the challenges due to COVID, implementation of PM Awas Yojana (Grameen) continued and the centre is close to achieving the target of three crore houses. Two crore more houses will be taken up in the next five years to meet the requirement arising from the increase in the number of families
MSME
- Policy priority is to provide training for MSMEs to compete globally and facilitating their growth will be important. To meet the investment needs, the government will prepare the financial sector
Agriculture and food processing
- FM announced that the efforts for value addition in the agricultural sector and boosting farmers’ income will be stepped up.
- Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh farmers and generated 10 lakh employment.
- Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and sixty thousand individuals with credit linkages.
- Other schemes are complementing the efforts for reducing postharvest losses and improving productivity and incomes.
Fiscal deficit and other key numbers
- FY25 fiscal deficit target at 5.1 percent of GDP.
- FY24 fiscal deficit target was revised down to 5.8 percent of GDP from 5.9 percent earlier.
- Fiscal deficit for the first nine months of FY24 till December stood at ₹9.82 lakh crore or 55 percent of annual estimates.
- FY25 capital expenditure set at ₹11.1 lakh crore, up 11.1 percent.
- FY25 total expenditure expected at ₹30.80 lakh crore. The revised estimate of the total expenditure for FY24 is ₹44.90 lakh crore.
- The revenue receipts for FY24 at ₹30.03 lakh crore are expected to be higher than the Budget estimate, reflecting strong growth momentum and formalisation in the economy.
- FY25 gross market borrowing pegged at ₹14.13 lakh crore, net borrowing at ₹11.75 lakh crore.
- FY25 gross tax receipt target at ₹26.02 lakh crore.
CURRENT AFFAIRS: INTERNATIONAL NEWS
4th India and Portugal Foreign Office Consultations held in New Delhi
- The fourth Foreign Office Consultations between India and Portugal was held in New Delhi, with a focus on political relations, deepening of trade and investment, cooperation in defence, science and technology, and energy.
- External Affairs Ministry said both sides stressed on early implementation of the pilot project on the Recruitment of Indian Citizens to work in the Portuguese Republic, as well as the holding of the first India – Portugal Consular Dialogue.
- Discussions were also held on the joint commemoration of the 50th anniversary of diplomatic relations in 2025.
- Both sides reviewed the ongoing cooperation between India and Portugal on the development of the Maritime Heritage Complex in Gujarat’s Lothal.
- The Consultations were co-chaired by Secretary (West) in the Ministry of External Affairs, Sanjay Verma and the Director General for Foreign Policy, in the Portuguese Foreign Affairs Ministry, Ambassador Rui Vinhas.
- They also called for the early scheduling of the Joint Working Group on Agriculture and Renewable Energy.
- The two sides also exchanged views on global and regional issues including Gaza and Ukraine and agreed to continue the existing close cooperation in multilateral fora, including at the UN
India and Oman review defence cooperation during the 12th Joint Military Cooperation Committee meeting in Muscat
- Defence Secretary Giridhar Aramane co-chaired the 12th Joint Military Cooperation Committee meeting with the Secretary-General, Ministry of Defence, Oman Mohammed Bin Naseer Bin Ali Al Zaabi in Muscat.
- During the meeting, both sides reviewed and appreciated the robust defence cooperation between India and Oman.
- The meeting delved into many new areas of cooperation in the fields of training, Joint exercise, Information sharing, Oceanography, and Ship Building that would build mutual trust and interoperability between militaries of both nations.
- They also exchanged views on regional and global issues of shared interest. Both sides discussed effective and practical initiatives to further boost bilateral defence engagements with a focus on defence industry collaboration.
CURRENT AFFAIRS: BUSINESS NEWS
Fiscal deficit in 2024-25 is estimated to be 5.1 percent of GDP
- Fiscal deficit in 2024-25 is estimated to be 5.1 percent of GDP.
- This is in adherence to the path of fiscal consolidation to reduce the fiscal deficit below 4.5 percent by 2025-26.
- States will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at a global scale.
- A framework for a rating of the centres based on the quality of facilities and services will be established.
- Long-term interest-free loans will be provided to States for financing such development on a matching basis
- ‘Direct Benefit Transfer’ of 34 lakh crore rupees into PM-Jan Dhan accounts has led to the savings of 2.7 lakh crore rupees for the Government.
- The PM-SVANidhi scheme has provided credit assistance to 78 lakh street vendors.
- Narendra Modi government started PM-JANMAN Yojana which reaches out to particularly vulnerable tribal groups, who have remained outside the realm of development so far.
- PM-Vishwakarma Yojana initiated by the Centre provides end-to-end support to artisans and craftspeople engaged in 18 trades.
CURRENT AFFAIRS: IMPORTANT DAYS
World Wetlands Day 2024: 2nd February
- World Wetlands Day is celebrated on 2nd February every year.
- Aims to raise global awareness about the vital role of wetlands for people and the planet.
- Because of the many benefits we get from wetlands, World Wetlands Day is observed on February 2 every year to raise awareness about their importance and the need to preserve them.
- On this day, The Convention on Wetlands was adopted in 1971.
- This year is especially significant as World Wetlands Day 2024 will be observed as a United Nations international day for the second time.
- On August 30 last year, the United Nations General Assembly adopted a resolution to mark the day.
- The day is celebrated to mark the date of the adoption of the Convention on Wetlands on February 2, 1971, in the Iranian city of Ramsar on the shores of the Caspian Sea.
- World Wetlands Day was first celebrated in 1997.
Daily CA One- Liner: February 2
- The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval for signing and ratification of the Bilateral Investment Treaty between the Government of the Republic of India and the Government of the United Arab Emirates.
- The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the continuation of Animal Husbandry Infrastructure Development Fund (AHIDF) to be implemented under Infrastructure Development Fund (IDF) with an outlay of Rs.29,610.25 crore for another three years up to 2025-26.
- The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval for determination of Marketing Margin on supply of domestic gas to Fertilizer (Urea) Units for the period from May 1, 2009 to November 17, 2015.
- The Union Cabinet chaired by Prime Minister Shri Narender Modi approved the extension of the scheme of sugar subsidy for Antyodya Anna Yojna (AAY) families distributed through the Public Distribution Scheme (PDS) for two more years i.e. 31 March 2026.
- The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the continuation of Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for export of Apparel/Garments and Made ups upto 31st March 2026.
- Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi launched a web portal of CMPFO namely C- CARES developed and designed by the Centre for Development of Advanced Computing (C-DAC), an R&D organization under the Ministry of Electronics and Information Technology on 31st January, 2024.
- Union Minister of Coal, Mines and Parliamentary Affairs, Shri Pralhad Joshi inaugurated three initiatives being undertaken as Corporate Social Responsibility of Coal India Limited (CIL) in collaboration with Educational Consultants Limited (EDCIL), National Skill Development Corporation and TATA STRIVE on 31st January,2024.
- Union Minister for Education and Skill Development & Entrepreneurship, Shri Dharmendra Pradhan launched ‘Ministry of Education – AICTE Investor Network’ in New Delhi.
- The Interim Union Budget for the financial year 2024-25 was tabled in the Parliament by Finance Minister Nirmala Sitharaman
- The fourth Foreign Office Consultations between India and Portugal was held in New Delhi, with a focus on political relations, deepening of trade and investment, cooperation in defence, science and technology, and energy
- Defence Secretary Giridhar Aramane co-chaired the 12th Joint Military Cooperation Committee meeting with the Secretary-General, Ministry of Defence, Oman Mohammed Bin Naseer Bin Ali Al Zaabi in Muscat
- Fiscal deficit in 2024-25 is estimated to be 5.1 percent of GDP
- World Wetlands Day is celebrated on 2nd February every year.
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