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05.09.2025 DAILY CURRENT AFFAIRS ANALYSIS

Updated 17 Oct 20264 min read

NEWS:India has successfully developed its first indigenous water-soluble fertilizer technology after seven years of intensive research

GS-3 science and technology

  Breakthrough achieved after seven years of R&D showcases India’s growing capability in specialty fertilizer innovation.

  Developed using Indian raw materials and domestically designed plants, this project aligns with the “Make in India” vision and is backed by the Ministry of Mines.

  The process is zero-effluent and emission-free, addressing sustainability and environmental concerns—a key reason it was flagged as a project of national importance.

“Make in India”:


📌 Introduction

  • Launch: 25 September 2014 by the Government of India.
  • Nodal Ministry: Ministry of Commerce & Industry, Department for Promotion of Industry and Internal Trade (DPIIT).
  • Objective: Transform India into a global design and manufacturing hub, boost domestic production, attract FDI, and create employment.

🎯 Key Objectives

  1. Promote Manufacturing Sector – raise its share in GDP to 25% (long-term target).
  2. Generate Employment – create 100 million additional jobs in manufacturing by 2025.
  3. Boost Investment & Innovation – ease of doing business, attract FDI, promote innovation and R&D.
  4. Skill Development – align with Skill India Mission for workforce training.
  5. Infrastructure Development – world-class industrial corridors, smart cities, logistics, and power.

Key Initiatives & Reforms under Make in India

  • FDI Liberalisation: Higher caps in defence, railways, construction, insurance, etc.
  • Ease of Doing Business: India jumped from 142nd (2014) to 63rd (2020) in World Bank EoDB rankings.
  • Insolvency and Bankruptcy Code (2016): Improved exit mechanisms.
  • Digital India & Start-Up India: Complementary initiatives promoting innovation.
  • Production Linked Incentive (PLI) Schemes: Introduced in 2020 to boost domestic manufacturing in strategic sectors.
  • National Infrastructure Pipeline (NIP): Investment in logistics, transport, and energy to support manufacturing.

NEWS:Cabinet Approves Incentive Scheme for Critical Mineral Recycling

GS-2 governance

Critical Minerals?

  • Definition: Minerals essential for modern technologies (EVs, semiconductors, renewable energy, defence), but with high supply risks due to limited availability and import dependence.
  • Examples: Lithium, cobalt, nickel, rare earth elements (REEs), graphite, tungsten, platinum group metals.

♻️ What is Critical Mineral Recycling?

  • Process of recovering and reusing critical minerals from end-of-life products and industrial waste.
  • Sources:
    • E-waste (mobiles, laptops, electronics).
    • Lithium-ion batteries (EVs, storage systems).
    • Catalytic converters, magnets, turbines.
    • End-of-life vehicles (ELVs) and industrial scrap.

📌 Why is Recycling Important for India?

  1. Import Dependence: India imports ~95% of its critical mineral needs.
  2. Energy Transition Needs: For EVs, solar, wind, and battery storage, demand for Li, Co, Ni will surge.
  3. Supply Chain Risks: Dominance of a few countries (e.g., China controls >60% of rare earths refining).
  4. Circular Economy: Reduces waste, ensures resource efficiency.
  5. Environmental Benefits: Recycling reduces mining pressures and carbon footprint.
  6. Economic Security: Saves foreign exchange, stabilises raw material supply for industries.

🏛️ Government Initiatives

  • National Critical Mineral Mission (2023): For exploration, processing, and recycling of critical minerals.
  • Cabinet Incentive Scheme (2025):
    • ₹1,500 crore support for recycling projects.
    • Targets: 270 kt recycling capacity → 40 kt mineral recovery annually.
    • Focus on lithium-ion battery scrap, e-waste, catalytic converters.
  • PLI Schemes: Encourage battery and electronics recycling in India.
  • Extended Producer Responsibility (EPR): Mandates companies to manage end-of-life products.

NEWS:RBI Cancels September 5 Banking Holiday Reschedules to September 8

GS-3 economy

  The Reserve Bank of India (RBI), via circular, cancelled the banking holiday on September 5, 2025, under the Negotiable Instruments Act, 1881.

  The holiday is rescheduled to September 8, 2025.

  On Sept 8, there will be no transactions/settlements in:

  • Government securities market
  • Money market
  • Foreign exchange market

Reserve Bank of India (RBI)

📌 Background

  • Established: 1 April 1935, under the RBI Act, 1934.
  • Nationalisation: 1 January 1949 (earlier privately owned).
  • Headquarters: Mumbai.
  • Current Governor (2025): Shaktikanta Das (25th Governor).

🎯 Objectives

  • Regulate the issue of currency and keep reserves to maintain monetary stability.
  • Operate the monetary policy to ensure price stability and growth.
  • Regulate banks and NBFCs for financial stability.
  • Manage foreign exchange and external trade balance.
  • Act as a lender of last resort to banks.

⚙️ Functions of RBI

1. Monetary Authority

  • Formulates and implements Monetary Policy.
  • Uses instruments:
    • Quantitative tools: CRR, SLR, Repo, Reverse Repo, OMOs.
    • Qualitative tools: Credit rationing, margin requirements.

2. Issuer of Currency

  • Issues currency notes under the minimum reserve system (except ₹1 notes and coins, issued by GoI).
  • Ensures public confidence in the rupee.

3. Regulator of Financial System

  • Regulates banks, NBFCs, payment systems.
  • Ensures soundness and stability of the financial system.

4. Manager of Foreign Exchange

  • Administers Foreign Exchange Management Act (FEMA), 1999.
  • Manages India’s forex reserves.

5. Developmental Role

  • Promotes financial inclusion (Jan Dhan, UPI).
  • Supports priority sector lending, rural credit, NABARD cooperation.

6. Other Functions

  • Debt Manager for Central and State governments.
  • Ensures safe & efficient payment and settlement systems (RTGS, NEFT, UPI).

Mains Mock Question

Q. “India’s dependence on fertilizer imports has serious implications for food security, farmers’ income, and foreign exchange reserves. In this context, discuss the challenges of India’s fertilizer sector and evaluate the government’s recent initiatives such as indigenous water-soluble fertilizer technology and Nutrient-Based Subsidy (NBS) scheme.”

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