Daily Current Affairs

Prelims Exam

1.Vibrant Village Programme

Why in News ?

MHA to spend ₹2 crore/km on border roads (Uttarakhand, Sikkim) under the program.


  • Centrally Sponsored Scheme for border village development.
  • Aims to improve quality of life and stop migration.
  • Focuses on livelihood generation through:
    • Tourism & cultural heritage promotion
    • Skill development & entrepreneurship
    • Agriculture, horticulture & cooperatives


  • Select villages in 46 blocks across 19 districts.
  • States: Arunachal Pradesh, Himachal Pradesh, Sikkim, Uttarakhand, Ladakh (UT).

Financial Outlay: ₹4800 crore (2022-23 to 2025-26).


  • Transformative impact on villages.
  • Integration with PM Gati Shakti for infrastructure projects.


Source : https://www.thehindu.com/news/national/government-to-spend-over-2-crore-on-each-kilometre-of-road-built-along-the-china-border-in-uttarakhand-and-sikkim/article68167972.ece



Why in News ?

Over 270 million users and 6.7 billion documents retrieved .


  • Launched in 2015 by MeitY under Digital India.
  • A secure digital platform for storing government-issued documents.
  • Provides access to:
    • Educational certificates
    • Identity documents
    • Health records
    • PAN cards
    • Driving licenses
    • And more


  • Eliminates fake/outdated documents.
  • Digital documents considered valid like originals.
  • Faster service delivery through the app.


  • Government-approved application with strict security protocols.
  • Aligns with Digital India’s vision for secure document access.

Source : https://www.thehindu.com/sci-tech/technology/what-is-digilocker-and-does-it-keep-your-data-safe-explained/article68163891.ece


3.ASEAN-India Trade in Goods Agreement (AITIGA)

Why in News ?

  • 4th Joint Committee meeting for review held in Malaysia.


  • Signed in 2010, operational since 2010.
  • Aims to reduce/eliminate duties on 76.4% of goods traded between India and ASEAN nations.
  • Review initiated in September 2022 for improved trade facilitation and mutual benefit.
    • Eight sub-committees formed for negotiations on specific policy areas.


  • ASEAN is a major trade partner for India (11% share).
  • Bilateral trade at USD 122.67 billion (2023-24).
  • Upgrading AITIGA can boost trade further.


Source : https://pib.gov.in/PressReleasePage.aspx?PRID=2020351#:~:text=The%20Joint%20Committee%20provided%20necessary,will%20further%20boost%20bilateral%20trade.


4.Aurora Lights in India

Why in News ?

 Indian Astronomical Observatory captured Aurora Borealis in Ladakh.

About Aurora:

  • Light displays near Earth’s poles (North: Aurora Borealis, South: Aurora Australis).
  • Visible in colors like blue, red, yellow, green due to gas types and altitude.
  • Caused by collisions of charged particles (from solar storms) with Earth’s atmosphere.

Recent Sichtings:

  • Aurora Borealis seen in Ladakh, US, UK.
  • Aurora Australis seen in New Zealand, Australia.

Additional Facts:

  • Auroras also observed on Jupiter, Saturn, Uranus.
  • Typically visible in high-latitude Arctic/Antarctic regions.

Source : https://indianexpress.com/article/explained/explained-sci-tech/northern-southern-lights-aurora-9322408/


5.Indian Rupee Depreciation

Why in the News?

  • Indian Rupee depreciated by 27.6% against the US dollar over the past decade.

Exchange Rate Basics:

  • Rate at which one currency is exchanged for another (e.g., USD/INR).
  • Types: Fixed, Floating, Managed Float.
  • Influenced by factors like interest rates, inflation, and trade.

Effective Exchange Rate (EER):

  • Weighted average of a currency against a basket of currencies, considering trade and inflation.
  • Types:
    • Nominal Effective Exchange Rate (NEER): Simple average of bilateral exchange rates, weighted by trade share. (Constructed by RBI for different baskets)
    • Real Effective Exchange Rate (REER): NEER adjusted for inflation differences between trading partners. (More accurate measure of trade competitiveness)

Impacts of Rupee Depreciation:


  • Boosts Exports: Cheaper exports become more attractive globally.
  • Inward Remittances: Weaker rupee increases value of money sent home by overseas workers.


  • Higher Import Costs: Imported goods become more expensive, potentially leading to inflation.
  • Costlier Foreign Debt: Repaying foreign debt becomes more expensive for the government.
  • Discourages Foreign Investment: Depreciation may signal instability, deterring foreign investors.

Source : https://indianexpress.com/article/explained/explained-economics/rupee-modi-government-9285946/


6.FEMA Regulations Relaxed for Foreign Investment in Derivatives

Why in the News?

  • RBI simplified foreign investment in derivatives by relaxing FEMA regulations.

Relaxation Details:

  • Objective: Easier margin management for domestic and international derivative trading.
  • Benefits for Foreign Investors:
    • Convenient investment in Indian derivative instruments.
    • Open interest-bearing accounts with Authorized Dealers (ADs) in India for margin.
    • Earn interest on these margin funds.
    • Dedicated accounts simplify management of margin obligations.

Current Mechanism:

  • RBI permits specific derivative contracts (interest rate, equity).
  • Interest-bearing accounts (INR/foreign currency) allowed for domestic margin collection.

Changes Introduced:

  • ADs can now allow non-residents to open and maintain these interest-bearing margin accounts.
  • Permitted derivative contracts remain unchanged.

Understanding FEMA (1999):

  • Legal framework for managing foreign exchange transactions in India.
  • Classifies transactions as current or capital account.

Current Account Transactions (No impact on resident’s foreign assets/liabilities):

  • Foreign trade payments.
  • Foreign travel expenses.
  • Educational expenses.

Capital Account Transactions (Affect resident’s foreign assets/liabilities):

  • Investments in foreign securities.
  • Acquiring property outside India.

Resident Indian Definition (FEMA Section 2(v)):

  • Someone residing in India for more than 182 days in the previous financial year.
  • Any person or corporation registered/incorporated in India.

Source :https://www.thehindubusinessline.com/markets/rbi-eases-fema-regulations-to-facilitate-foreign-investment-in-derivatives/article68149711.ece

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