DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 10th April 2025
Archives (PRELIMS & MAINS Focus) REPO RATE Category: ECONOMY Context: The Reserve Bank of India’s (RBI’s) six-member Monetary Policy Committee (MPC) on April 9th decided to cut the repo rate by 25 basis points to 6%. Decoding the context: The rate setting panel also changed the monetary policy stance from “neutral” to “accommodative”, signaling further reductions in the repo rate in the near future. Learning Corner: The repo rate is the interest rate at which a central bank (Reserve Bank of India – RBI), lends money to commercial banks for a short period. The term “repo” stands for repurchase agreement, which means that banks borrow funds from the RBI by selling securities (usually government bonds) with an agreement to repurchase them at a later date, typically overnight or within a few days. The repo rate essentially represents the cost of borrowing for these banks. When the RBI lowers the repo rate (like reducing it from 6.25% to 6% on April 9, 2025), it becomes cheaper for banks to borrow money. This typically encourages banks to lend more to businesses and individuals, boosting economic activity, increasing money supply, and potentially stimulating growth About Reverse Repo The reverse repo rate is the interest rate at which the RBI borrows money from commercial banks. It’s essentially the opposite of the repo rate. When banks deposit their excess funds with the RBI, they earn interest at the reverse repo rate. This rate is typically lower than the repo rate and helps the RBI absorb liquidity from the economy. If the RBI wants to reduce the amount of money circulating (to control inflation, for example), it might increase the reverse repo rate, incentivizing banks to park more funds with it instead of lending them out. Source : Indian Express PANCHAYAT ADVANCEMENT INDEX (PAI) Category: POLITY Context: In a push for data driven governance, the Department of Panchayati Raj has come up with the first ever Panchayat Advancement Index (PAI). Decoding the context: There are 2.5 lakh gram panchayats in the country. Out of these, data of around 2.16 lakh gram panchayats from 29 States have been assessed. Learning Corner: The Panchayat Advancement Index (PAI) is a comprehensive, multi-domain, and multi-sectoral tool introduced by the Ministry of Panchayati Raj in India to assess the holistic development, performance, and progress of Gram Panchayats across the country. The PAI reflects India’s commitment to achieving the SDG 2030 Agenda through participatory, bottom-up development. The first baseline report, released for FY 2022-23, analyzed data from 2,16,285 panchayats with validated inputs. Purpose of PAI : Measures the overall well-being and development status of local communities under a panchayat’s jurisdiction. Identifies development gaps and supports evidence-based planning and policy-making at the grassroots level. Encourages panchayats to adopt best practices and set local targets to enhance their performance. Indicators: Panchayat Advancement Index (PAI) is a composite Index & has been compiled based on 435 unique local Indicators (331 mandatory & 104 optional) consisting of 566 unique data points across 9 themes of LSDGs (Localization of Sustainable Development Goals) aligned with National Indicator Framework (NIF) of the Ministry of Statistics and Programme Implementation (MoSPI). Nine Themes of Localized SDGs: Poverty-Free and Enhanced Livelihoods Panchayat Healthy Panchayat Child-Friendly Panchayat Water-Sufficient Panchayat Clean and Green Panchayat Self-Sufficient Infrastructure in Panchayat Socially Just and Socially Secured Panchayat Panchayat with Good Governance Women-Friendly Panchayat Based on the PAI scores & thematic Scores achieved by different Gram Panchayats, these GPs are grouped into one of the five categories Achiever: 90+ score (none achieved this in 2022-23) Front Runner: 75 to <90 (e.g., 699 panchayats, 0.3%) Performer: 60 to <75 (e.g., 77,298 panchayats, 35.8%) Aspirant: 40 to <60 (e.g., 1,32,392 panchayats, 61.2%) Beginner: <40 (e.g., 5,896 panchayats, 2.7%) Source : The Hindu BEAR MARKET Category: ECONOMY Context: The S&P 500 —- a stock market index that tracks the performance of 500 of the largest publicly traded companies in the US — on Monday briefly entered bear market territory for the first time since 2022. Decoding the context: A bear market (or for that matter, all types of market decline) takes place when investors are more motivated to sell than to buy stocks. Learning Corner: A bear market refers to a condition in which a stock index declines by at least 20% from its most recent peak value. This designation lacks an official or standardized determination and serves primarily as an informal term to succinctly indicate a significant downturn in the stock index. A bear market is the opposite of a bull market, which refers to when a stock index has increased at least 20% from its recent low. Note that a bear market is different from a market correction which occurs when there is a decline of at least 10% or more. Why does a bear market occur? There could be a host of different reasons. These include a weak economy, the anticipation of an economic slowdown, or investor sentiment that the market is too hot and prices too high. Events that are not purely economic — such as wars, oil supply shocks, etc — can also spook investors, leading to a dip in the market. A bear market often precedes a recession — a slowdown in economic output and is usually defined as at least two consecutive quarters of decline in gross domestic product (GDP). However, this is not always the case. The Indian stock market has also experienced bear markets over the years. One of the worst bear markets occurred during the 2008 global financial crisis. Between September 8, 2008, and November 6, 2008, the Nifty 50 index had dropped over 35%. Source : Indian Express THAR DESERT Category: GEOGRAPHY Context: The Thar Desert in India saw a striking 38 per cent rise in greening annually over the last two decades, driven by a significant increase in monsoon rainfall and agricultural expansion, a new study showed. Decoding the context: In fact, Thar was the only desert in the world with the highest concurrent increase in population, precipitation and vegetation during the last few decades, scientists from IIT Gandhinagar
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