1. Interest Equalisation Scheme (IES)

Interest Equalisation Scheme (IES): The Commerce and Industry Ministry has requested an extension of the Rs 3,000 crore Interest Equalisation Scheme (IES) ahead of the Union Budget 2025-26, focusing on MSMEs involved in exports.

• About: IES is a government program that reduces the interest rates that banks charge exporters on export-related credit. The scheme was introduced on April 1, 2015.
• The IES scheme lapsed on December 31 (2024), and discussions are ongoing between the Finance and Commerce Ministries to modify it.
• Concerns were raised that large exporters, especially non-MSMEs, were benefiting the most from the scheme. A revision will prioritize MSMEs, which contribute 45% to India's total exports.
• Exporters had demanded an extension in pre-Budget consultations, as they need subsidized interest loans due to rising inflation and logistical challenges, such as the Red Sea crisis.
• Export credit declined between March 2022 and March 2024, despite rising demand. FIEO highlighted liquidity challenges due to high inflation and longer credit durations.
• IES subsidy is critical for exporters with low profit margins, helping them secure competitive export orders by reducing credit costs.
• The IES scheme, launched in April 2015, provides interest subsidies on export credit ranging from 3-5%, making Indian exports more competitive.

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2. 8th Pay Commission

8th Pay Commission: The Union Cabinet recently approved the 8th Pay Commission.

• About: A pay commission is constituted by the central government approximately every decade to revise the salary structure of its employees and determine pension payments.
• 8th Pay Commission to be set up in 2026, a year before the end of the 7th Pay Commission.
• The 7th Pay Commission was established in 2016, and its term ends on December 31, 2025.
• Since 1947, seven Pay Commissions have been established.
• The 7th Pay Commission recommendations were implemented in January 2016, with a 14% salary hike for government employees.

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3. QS World Future Skills Index 2025

QS World Future Skills Index 2025: India was ranked second in terms of preparedness for jobs of the future including artificial intelligence (AI) and green skills, only behind the United States, as per the QS World Future Skills Index 2025.

• About: The QS World Future Skills Index categorizes economies into four tiers: aspiring, practitioner, contender, and pioneer, based on their performance.
• The rankings were derived from an extensive analysis of Skills fit, the alignment between education systems and industry requirements.
• India ranked 25th across all indicators, which also include the alignment between skills and employer needs, academic readiness, and economic transformation.
• Category rankings: Evaluates readiness for future skills like digital, AI, and green skills based on global job advertisements.
• "Economic Transformation": Scored 58.3, lowest among the top 30 countries.
• "Skills Fit": Scored 59.1, lowest among top 30 countries; indicates gaps in aligning workforce skills with employer needs.
• Strengths: Scored a perfect 100 on economic capacity, reflecting strong workforce efficiency and growth potential.
• Weaknesses: Poor score (15.6/100) in future-oriented innovation in sustainability under economic transformation.
• Global comparisons (Economic transformation): G7 countries (68.3), EU countries (59), APAC countries (44.7) & African countries (25.4).

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4. Jallikattu

Jallikattu:  Seven people, including six spectators, died, and over 400 were injured during jallikattu events across Tamil Nadu.

• About: Jallikattu (or Sallikkattu) is also known as Eru Thazhuvuthal and Mañcuvirattu.
• The sport is prominent in the Jallikattu belt comprising Madurai, Tiruchirappalli, Theni, Pudukkottai, and Dindigul districts.
• Celebrated during the Tamil harvest festival Pongal, in the second week of January.
• Historical Significance: A tradition over 2,000 years old, Jallikattu is both a competitive sport and a way to honour bull owners who rear bulls for mating.

o Contestants try to tame the bull to win a prize; if unsuccessful, the bull owner claims the prize. It serves as a traditional practice for the peasant community to preserve pure-breed native bulls.

o Popular breeds include Kangayam, Pulikulam, Umbalachery, Barugur, and Malai Maadu.

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5. Third Launch Pad (TLP)

Third Launch Pad (TLP): The Union Cabinet recently approved the construction of a third launch pad (TLP) at the Indian Space Research Organisation’s (ISRO’s) space centre in Sriharikota.

• About: It’s purpose to support Next Generation Launch Vehicles (NGLV) and acts as a standby for the Second Launch Pad (SLP).
• Design Features: Supports heavy-lift, partially reusable NGLV and medium-lift LVM-3.
• Current Launch Pads:

o First Launch Pad (FLP): Operational for 30 years, supports PSLV, SSLV, and functions as a standby for GSLV and LVM-3.

o Second Launch Pad (SLP): Operational for 20 years, supports PSLV, LVM-3, Chandrayaan-3, and future Gaganyaan missions.

• Future Vision: To support the Bharatiya Antariksh Station (BAS) by 2035.

o Enable an Indian Crewed Lunar Landing by 2040.

• Need for TLP: Accommodates heavier launch vehicles with advanced propulsion systems.

o Meets evolving space transportation needs for the next 25-30 years.

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6. Cross-border Transactions

Cross-border Transactions: The Reserve Bank of India (RBI) recently announced liberalised norms to encourage use of Indian Rupee and local/national currencies to settle cross border transactions.

• About: RBI has signed Memoranda of Understanding (MoUs) with the UAE, Indonesia, and Maldives to promote transactions in local currencies, including INR.
• Special Rupee Vostro Account (SRVA): Introduced in July 2022 to boost INR usage in trade transactions.
• Multiple foreign banks have opened SRVAs with Indian banks.
• About FEMA: The Foreign Exchange Management Act (FEMA) of 1999 regulates the flow of payments to and from India. The Reserve Bank of India (RBI) is empowered to make regulations under FEMA. The revised FEMA regulations includes:

o Authorized Dealer Banks' Overseas Branches: Can open INR accounts for non-residents to settle permissible current and capital account transactions.

o Non-Residents: Can use balances in repatriable INR accounts (Special Non-resident Rupee account, SRVA) for transactions with other non-residents and for foreign investments, including FDI in non-debt instruments.

• Exporters' Flexibility: Indian exporters can open foreign currency accounts overseas to settle trade transactions, receive export proceeds, and pay for imports using these proceeds.
• Purpose of Changes: Aimed at promoting cross-border transactions in INR and local currencies.
• Follows a review of the 1999 FEMA regulations by the RBI and the central government.
• About: RBI is the central bank of India whose primary function is to manage and govern the financial system of the country.

o It is a statutory body established in the year 1935 under the Reserve Bank of India Act, 1934.

o The central bank regulates the issue and supply of the Indian rupee.

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7. Medium-Range Surface-to-Air Missiles (MRSAM)

Medium-Range Surface-to-Air Missiles (MRSAM): Ministry of Defence (MoD) has recently signed a contract with Bharat Dynamics Limited (BDL) for the supply of Medium-Range Surface-to-Air Missiles (MRSAM) for the Indian Navy.

• About: The Medium-Range Surface-to-Air Missile (MRSAM) is also known as the ‘Abhra’ Weapon System, a state-of-the-art air defence weapon system.
• Jointly developed by DRDO and Israeli Aerospace Industries (IAI).
• Manufactured by Bharat Dynamics Limited (BDL).
• Designed to neutralize hostile aircraft, helicopters, cruise missiles, and drones within a range of 70 km.

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8. Marburg virus disease (MVD)

Marburg virus disease (MVD): A suspected outbreak of Marburg virus disease (MVD) in Tanzania’s Kagera region has claimed eight lives out of nine reported cases, according to the World Health Organization (WHO).

• About: MVD begins abruptly, with high fever, severe headache and severe malaise. Muscle aches and pains are a common feature.

o Severe watery diarrhoea, abdominal pain and cramping, nausea and vomiting can begin on the third day.

o Non-itchy rash have been reported in patients between 2 and 7 days after onset of symptoms.

o Fatality rate is 89%, similar to Ebola.

• Affected Areas: Cases reported in Biharamulo and Muleba districts (as of January 11, 2025).

o Similar outbreak in Bukoba district reported 9 cases and 6 deaths in March 2023.

• WHO Risk Classification: Classified as high-risk for Tanzania and neighbouring countries (Rwanda, Uganda, Burundi, DRC).

o Proximity to borders and role as a regional transit hub increases cross-border transmission risks.

• Neighbouring Outbreak: Rwanda declared the end of its Marburg outbreak in December 2024 (66 cases, 15 deaths).
• WHO Support: Provided detailed guidance to curb human-to-human and zoonotic transmission.

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