DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 8th August – 2025
rchives (PRELIMS Focus) Herbicides Category: AGRICULTURE Context: While insecticides are the largest segment, herbicides are growing fastest at 10%+ annually, driven by labour shortages for manual weeding. India’s crop protection chemicals market (~₹24,500 crore) is dominated by insecticides (₹10,706 crore), fungicides (₹5,571 crore), and herbicides (₹8,209 crore). Key Points: Market control: Mostly by multinationals like Bayer AG, Syngenta, Corteva, Sumitomo, and Crystal Crop Protection. Labour shortage: Manual weeding takes 8–10 hours per acre, repeated multiple times. Rural labour is scarce due to alternative employment, pushing farmers towards herbicides. Usage trend: Farmers now use “pre-emergent” herbicides before weeds sprout and “early post-emergent” for initial weed stages. Preventive spraying is replacing curative measures. Cost: Herbicides (~₹1,500 crore pre-emergent market) are cheaper than manual labour; pre-emergent herbicide cost is about ₹550 per acre. Monopoly concerns: Like seeds and fertilizers, herbicide sales are influenced by corporate promotion, leading to dependence on branded products. Learning Corner: Insecticides vs fungicides, vs herbicides Aspect Insecticides Fungicides Herbicides Target Insects and pests that damage crops by feeding on them or spreading disease. Fungi causing plant diseases such as rusts, blights, and mildew. Unwanted plants/weeds that compete with crops for nutrients, water, and sunlight. Purpose Prevent or kill insects to protect crops. Prevent or control fungal diseases to maintain crop health. Kill or inhibit the growth of weeds. Timing of Use Often applied during pest infestation or as preventive sprays in pest-prone seasons. Usually applied before or during disease occurrence, sometimes preventively in humid/wet conditions. Applied pre-emergent (before weeds sprout) or post-emergent (after weeds appear). Market Size in India (2024–25 est.) ₹10,706 crore (largest share). ₹5,571 crore. ₹8,209 crore. Annual Growth Rate 5.3%–5.5%. 5.5%–6%. 10%–11% (fastest-growing). Current Trend Stable growth, market leader in share. Moderate growth, focused on disease management. Rapid growth due to labour shortage for manual weeding and shift to preventive use. Source: THE INDIAN EXPRESS Small Finance Bank Category: ECONOMICS Context : AU Small Finance Bank Gets RBI Nod to Become Universal Bank The Reserve Bank of India has given in-principle approval for AU Small Finance Bank (AU SFB) to transition into a universal bank. This status will let AU Bank offer a wider range of financial services and products under one roof with fewer restrictions compared to a small finance bank. Learning Corner: Small Finance Bank (SFB) – Brief Note Origin & Recommendation – The idea of SFBs was recommended by the Usha Thorat Committee (2014), constituted by the RBI to explore new models of financial inclusion. It suggested creating niche banks to serve small business units, small and marginal farmers, micro and small industries, and other unorganised sector entities. Related Committees – Usha Thorat Committee (2014) – Recommended SFBs. Nachiket Mor Committee (2013) – Recommended differentiated banking structure, including Payments Banks. Purpose – To provide credit and savings facilities to underserved and unbanked sections, with a focus on priority sector lending. Key Features – Minimum 75% of Adjusted Net Bank Credit (ANBC) must be given to the priority sector. At least 50% of loans should be up to ₹25 lakh. Must be registered as a public limited company under the Companies Act, 2013 and licensed under Section 22 of the Banking Regulation Act, 1949. Minimum paid-up equity capital: ₹200 crore. Examples – AU Small Finance Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank, Jana Small Finance Bank. Universal Bank: Purpose: Offer a full range of banking and financial services — retail, corporate, investment banking, insurance, mutual funds — under one roof without many of the restrictions applicable to niche banks. Regulation: Licensed under RBI’s universal bank guidelines. Scope: Broader operational freedom, larger customer base, and wider product portfolio compared to SFBs. Example: State Bank of India, HDFC Bank, ICICI Bank. Key Difference: SFBs are targeted, inclusion-driven banks with lending restrictions and high priority sector requirements. Universal banks have diversified operations and fewer restrictions, enabling them to serve all segments extensively. Source: THE INDIAN EXPRESS Tariff War Category: INTERNATIONAL Context: US President Donald Trump announced an extra 25% tariff on Indian imports as a penalty for buying Russian energy, adding to an existing 25% tariff. This makes Indian goods face a 50% tariff in the US Summary What Trump’s 50% tariff means for India: India’s reaction: Called the move unfair and warned of taking all necessary actions to protect national interests. Impact: Could reduce India’s GDP by over 0.5 percentage points annually, disrupt supply chains, and hurt small exporters (e.g., textile firms in Ludhiana). Trade deficit concerns: Imposing retaliatory tariffs on US imports would harm Indian consumers and potentially widen India’s trade deficit. Reasoning: The tariff is less about free trade and more about using economic pressure to achieve political goals, particularly regarding Russia. Learning Corner: World Trade Organization (WTO) The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. It aims to ensure that international trade flows as smoothly, predictably, and freely as possible. Historical Background 1944 – At the Bretton Woods Conference, there was an initial idea for an International Trade Organization (ITO) to complement the IMF and World Bank, but it never came into existence due to lack of ratification by the US Congress. 1947 – General Agreement on Tariffs and Trade (GATT) signed as a temporary arrangement to regulate international trade. 1948–1994 – GATT evolved through various negotiation rounds (notably the Uruguay Round). 1 January 1995 – WTO formally established, replacing GATT, as an outcome of the Uruguay Round (1986–94) negotiations. Objectives of WTO Promote free and fair trade among nations. Provide a platform for trade negotiations. Settle trade disputes in a rules-based manner. Enhance transparency in global trade policies. Integrate developing countries into the global trading system. Key functions Administering WTO Agreements – Includes: GATT 1994 – Trade in goods. GATS – Trade in services. TRIPS – Intellectual property rights. Forum for Negotiations – Trade liberalization and new agreements. Dispute Settlement Mechanism (DSM) – Through the Dispute Settlement Body (DSB), ensures prompt resolution of conflicts. Monitoring and Review – Trade
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