04 March 2025 : Daily Current Affairs

1. The implications of treating Virtual Digital Assets as taxable properties

(Source – The Hindu, International Edition – Page No. – 11)

Introduction

• As digital finance grows, governments are working on ways to classify, regulate, and tax Virtual Digital Assets (VDAs) like cryptocurrencies and NFTs.
• India’s Income Tax Bill, 2025, brings a structured legal framework for VDAs, aligning with global practices.

VDAs as Property and Capital Assets

• The bill clearly defines VDAs as property and capital assets, similar to how the U.K., Australia, and New Zealand treat them.
• This means profits from buying and selling VDAs will be taxed just like real estate or stocks.
• If a person buys Bitcoin and sells it at a higher price, the profit will be taxed under capital gains.

Taxation of VDAs

• A flat 30% tax applies to profits from VDA transactions.
• No deductions are allowed, except for the initial cost of purchase (e.g., transaction fees cannot be deducted).
• A 1% TDS (Tax Deducted at Source) applies to VDA transfers, even in direct person-to-person transactions.
• The tax rules are stricter than in the UAE, where certain crypto trades are tax-free.

Reporting and Compliance

• VDAs must be reported in tax filings; failure to do so can result in them being classified as undisclosed income and taxed heavily.
• Authorities can seize VDAs if they suspect tax evasion, just like they do with cash or gold.
• Crypto exchanges and traders must report all transactions, making illegal activities harder.

Aligning with Global Standards and Challenges

• India’s classification of VDAs as property and capital assets aligns with international tax frameworks.
• The U.S. SEC treats many crypto assets as securities, bringing them under financial regulations.
• Despite progress in taxation and classification, there is no comprehensive regulatory framework yet.
• Issues like investor protection, enforcement mechanisms, and standard guidelines remain unresolved.
• A cohesive policy is needed to integrate financial regulations, technology, and consumer protection for a secure digital asset system.

2. The wider implications of Trump’s economic and trade policies

(Source – The Hindu, International Edition – Page No. – 13)

Implications of US President Donald Trump’s Economic and Tariff Policies

• Global Supply Chain Disruptions – Increased tariffs disrupt established supply chains, affecting manufacturers and raising production costs.
• Market and Currency Volatility – Trade wars lead to fluctuations in global stock markets and depreciation of national currencies.
• Inflationary Pressures – Higher import duties increase the cost of goods, leading to inflation in both the US and global markets.
• Decline in Global Trade – Protectionist policies discourage international trade, slowing global economic growth.
• Impact on Developing Nations – Emerging economies relying on exports, such as mono-crop agricultural nations, face economic hardship.
• Retaliatory Measures – Other countries impose counter-tariffs, escalating trade tensions.
• Impact on Businesses – Companies face uncertainty, leading to reduced investments and job losses.

Way Forward

• Negotiated Trade Agreements – Encourage diplomatic trade talks to balance economic interests.
• Strengthening WTO Mechanisms – Reinforce multilateral institutions to ensure fair trade policies.
• Diversifying Export Markets – Countries should explore alternative markets to reduce dependency.
• Encouraging Domestic Manufacturing – Nations should invest in self-sufficiency and local production.
• Reducing Trade Barriers Gradually – Phased tariff reductions can prevent economic shocks.
• Strengthening Regional Cooperation – Countries should enhance regional trade partnerships to mitigate external disruptions.

3. India’s Agricultural Trade Surplus Shrinks as Imports Surge Amid Export Fluctuations

(Source – Indian Express, Section – Explained- Page No. – 14)

Analysis of the news:

Narrowing Agricultural Trade Surplus

• India’s agricultural exports rose by 6.5% in April-December 2024, surpassing the 1.9% overall merchandise export growth.
• However, agricultural imports surged by 18.7%, leading to a reduced trade surplus of $8.2 billion, down from $10.6 billion in the same period last year.
• This trend reflects India’s growing dependence on imported agricultural commodities, particularly edible oils and pulses.

Impact of Global Commodity Prices

• The agricultural trade surplus has fluctuated over the years, largely influenced by global price trends.
• A decline in international commodity prices between 2013-14 and 2019-20 reduced India’s export competitiveness while making imports cheaper.
• However, post-pandemic disruptions and geopolitical events like the Russia-Ukraine war led to a rebound in global prices, boosting exports to $53.2 billion in 2022-23.
• With global prices stabilizing in 2023-24, India’s exports have moderated, impacting the trade balance.

Key Export Drivers and Declining Sectors

• Strong Performers: Rice, spices, coffee, and tobacco exports have remained strong, benefiting from global supply shortages and India’s dominance in key markets.
• Declining Commodities: Marine products and sugar exports have seen a decline, with the latter impacted by government-imposed restrictions to control food inflation. Wheat exports have almost stopped due to domestic supply concerns.

Surge in Agricultural Imports

• Edible Oils: A major contributor to rising imports, with spending expected to be the highest since 2021-22 due to global price fluctuations.
• Pulses: A poor domestic harvest in 2023-24 has pushed imports past $5 billion for the first time.
• Spices & Cotton: India has become a net importer of pepper and cardamom, despite leading in other spices. Similarly, from being a major cotton exporter, India is now a net importer due to declining domestic production.

Conclusion:

• India’s agricultural trade dynamics highlight the need for strategic policies to boost exports and reduce import dependency.
• Enhancing domestic production of key imports like pulses and edible oils through technological interventions and improved productivity is crucial.
• Additionally, ensuring stable trade policies can prevent abrupt export restrictions that disrupt India’s competitive edge in global markets.

4. PM Modi Chairs NBWL Meeting: Major Wildlife Conservation Initiatives Announced

(Source – Indian Express, Section – Cover Page- Page No. – 01)

Analysis of the news:

Expansion of Project Cheetah

• Prime Minister Narendra Modi announced the expansion of Project Cheetah to Gandhisagar Sanctuary in Madhya Pradesh and Banni Grasslands in Gujarat.
• This move aims to strengthen cheetah conservation efforts and expand their habitat beyond Kuno National Park.

Project Lion and Asiatic Lion Population Estimation

• The government allocated ₹2,900 crore for Project Lion over the next decade to increase the range of Asiatic lions across Saurashtra.
• Additionally, the Asiatic Lion population estimation will begin in May 2024 as part of regular conservation efforts.

Great Indian Bustard and Gharial Conservation

• A National Great Indian Bustard Conservation Plan was announced, though its integration with the existing recovery plan remains unclear.
• The Gharial conservation project aims to address the declining population of this critically endangered crocodilian species.

Human-Wildlife Conflict Management

• A Centre of Excellence for Human-Wildlife Conflict Management will be set up at the Wildlife Institute of India in Coimbatore.
• It will provide advanced technology, surveillance systems, and capacity-building for field practitioners to mitigate conflicts.

First Riverine Dolphin Estimation Report

• Modi released the first-ever riverine dolphin estimation report, revealing 6,327 river dolphins across the Ganga, Brahmaputra, and Indus river basins, emphasizing the need for focused conservation efforts.

Use of Technology in Wildlife Conservation

• The PM stressed the need for remote sensing, geospatial mapping, AI, and machine learning to tackle forest fires and human-animal conflicts. He also emphasized documenting traditional knowledge related to forest and wildlife conservation.

Community Participation in Wildlife Conservation

• Modi highlighted the crucial role of local communities, such as the Maldharis, in lion conservation and called for community-driven conservation efforts beyond government initiatives.

International Leadership in Big Cat Conservation

• The International Big Cat Alliance (IBCA), launched in 2023, was reviewed, with Modi urging India to continue leading global efforts in big cat conservation.

Conclusion:

• The NBWL meeting, chaired by PM Modi, reaffirmed India’s commitment to wildlife conservation through new initiatives and expanded projects.
• Emphasizing community participation, technological advancements, and strategic funding, the government aims to enhance biodiversity protection while addressing human-wildlife conflicts effectively.

5. NITI AAYOG LAUNCHES REPORT ON WOMEN’S ROLE IN INDIA’S FINANCIAL GROWTH STORY

(Source – https://pib.gov.in/PressReleasePage.aspx?PRID=2107708 )

Increase in Women’s Financial Awareness

• As of December 2024, 27 million women were monitoring their credit scores, showing a 42% rise from the previous year.
• This increase reflects a growing awareness of financial management among women.

Importance of Financial Access for Women Entrepreneurs

• The government recognizes that access to finance is essential for empowering women entrepreneurs.
• WEP works to promote financial literacy, access to credit, mentorship, and market linkages for women.
• The Financing Women Collaborative (FWC) has been created to bring financial stakeholders together to support this goal.

Impact of Women’s Entrepreneurship on Economic Growth

• Encouraging women to start businesses can generate employment opportunities and boost economic growth.
• It is estimated that women’s entrepreneurship could create jobs for 150 to 170 million people.

Increase in Credit Self-Monitoring by Women

• Women’s share in the total self-monitoring base rose to 19.43% in December 2024, up from 17.89% in 2023.
• Growth in self-monitoring credit awareness was higher in non-metro regions (48%) compared to metro areas (30%).
• Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana accounted for 49% of all self-monitoring women.

Growth in Women’s Business and Gold Loans

• Since 2019, women’s participation in business loan origination has increased by 14%.
• Women now account for 35% of business borrowers.
• Their share in gold loans has increased by 6%.

Challenges Faced by Women in Accessing Credit

• Many women hesitate to take loans due to credit aversion and negative banking experiences.
• Issues like lack of collateral, difficulty in finding guarantors, and readiness for credit remain major challenges.

Opportunity for Financial Institutions

• With rising credit awareness and better financial scores, banks and financial institutions can design gender-smart financial products.
• These products should cater to women’s unique financial needs and encourage more women to participate in the financial sector.

Conclusion

• Increasing financial awareness and access to credit are crucial for empowering women entrepreneurs in India.
• Addressing credit barriers through inclusive policies and gender-smart financial products can accelerate women’s economic participation and growth.

Prelims Facts

1. The Electors Photo Identity Card (EPIC)

(Source – Indian Express, Section – Explained- Page No. – 14)

Analysis of the news:

Background on EPIC and Electoral Roll

• The Electors Photo Identity Card (EPIC) is a voter ID issued under the Registration of Electors Rules, 1960, to prevent impersonation.
• It serves as an identity document but does not guarantee voting rights, which depend on inclusion in the electoral roll.
• Since 2017, EPICs have been generated through the EC’s ERONET portal, which aims to ensure unique EPIC numbers for all voters.

TMC’s Allegations

• West Bengal Chief Minister Mamata Banerjee has accused the Election Commission (EC) and the BJP of manipulating the voter list by assigning duplicate EPIC numbers to fake voters.
• She has called on party workers to verify the electoral roll, citing similar alleged irregularities in Maharashtra and Delhi.
• The TMC claims that non-residents are being brought in to vote using duplicated EPICs, raising concerns about electoral integrity.

Election Commission’s Clarification

• The EC acknowledged that duplicate EPIC numbers exist but denied the existence of fake voters.
• It explained that before ERONET’s implementation, states independently issued EPICs, sometimes using the same alphanumeric series, leading to duplication.
• However, each voter is only allowed to vote in their designated polling station, preventing multiple voting.
• The EC has pledged to rectify duplicate numbers by issuing unique EPICs through an updated ERONET 2.0 system.

Key Takeaways

• While duplicate EPIC numbers exist due to legacy issues, they do not necessarily indicate electoral fraud.
• The EC’s commitment to rectification through technological updates could enhance the transparency of voter registration.
• However, political parties remain skeptical, necessitating vigilance to ensure a fair electoral process.

2. Nearly 7 Lakh Olive Ridley Turtles Mass Nest at Odisha’s Rushikulya Rookery After a Year’s Gap

(Source – Indian Express, Section – Explained- Page No. – 14)

Analysis of the news:

About Olive Ridley Turtles

• Olive Ridley turtles (Lepidochelys olivacea) are the smallest and most abundant sea turtles, named after their olive-green shells.
• They are found in warm waters of the Pacific, Atlantic, and Indian Oceans.
• Despite their abundance, their population has declined by 50% since the 1960s due to egg collection, habitat destruction, and accidental capture in fishing nets.

Arribada: The Unique Mass Nesting

• A distinctive feature of Olive Ridleys is their synchronized mass nesting, known as “arribada,” where thousands of females come ashore simultaneously to lay eggs.
• Odisha’s coast, particularly Rushikulya and Gahirmatha, is one of the world’s largest arribada sites, alongside Mexico and Costa Rica.
• Favorable beach conditions, low wind speed, and moderate waves make these sites ideal for nesting.

Factors Behind the Large Nesting in 2025

Experts attribute the high nesting numbers to multiple factors:

1. Favorable Weather – Low rainfall in February prevented beach erosion, creating more nesting space.
2. Beach Gradient – A lower slope this year made it easier for turtles to access nesting areas.
3. Optimal Nesting Timing – Mid-February nesting increases hatchling survival rates, reducing losses due to high temperatures and coastal erosion.

Conservation Status of Olive Ridley Turtle

• IUCN Red List: Vulnerable
• Wildlife Protection Act, 1972: Schedule 1
• CITES: Appendix I

3. India’s First Dolphin Census Reveals 6,324 Gangetic Dolphins

(Source – Indian Express, Section – Govt & Politics- Page No. – 06)

Analysis of the news:

About Gangetic Dolphin:

• It is a freshwater species and one of the few river dolphins found in the world.
• It inhabits the Ganges-Brahmaputra-Meghna and Karnaphuli-Sangu river systems of Nepal, India, and Bangladesh.
• Common Names: Blind dolphin, Ganges dolphin, Ganges susu, hihu, side-swimming dolphin, South Asian River Dolphin
• Scientific name:Platanista gangetica
• The Gangetic Dolphin has been recognized as India’s National Aquatic Animal.
• Description:
  • A long thin snout, rounded belly, stocky body and large flippers are characteristics of the Ganges River dolphin.
  • It feeds majorly on fishes and is are usually found in counter-current systems of the main river channel.
  • Its eyes lack lens, and as a result, this species is also referred to as the “blind dolphin”.
  • They have a highly developed bio-sonar system that facilitates them to hunt for fish even in murky waters.
  • Being a mammal, the Ganges River dolphin cannot breathe in the water and must surface every 30-120 seconds. Because of the sound it produces when breathing, the animal is popularly referred to as the ‘Susu’.
• Conservation status:
  • IUCN: Endangered
  • Wildlife (Protection) Act: Schedule-I
  • CITES: Appendix I                                 

Dolphin Population Estimates

• The survey found 6,324 Gangetic dolphins spread across the Ganga and Brahmaputra river basins and three Indus river dolphins in Punjab’s Beas river basin.
• Conducted over two years (2021-2023), the survey covered 8,406 km of river stretches, providing the first comprehensive population estimate for India’s river dolphins.

Regional Distribution

• Ganga Basin: 5,689 dolphins, with 3,275 in the main stem and 2,414 in its tributaries.
• Brahmaputra Basin: 635 dolphins, with 584 in the main stem.
• Beas River (Punjab): Only three Indus dolphins were recorded.

Among states, Uttar Pradesh recorded the highest number (2,397), followed by Bihar (2,220) and Assam (635).

Key Findings and Trends

• Bihar’s dolphin population thrives due to deeper water levels and suitable river morphology, particularly in the Chausa-Manihari stretch.
• UP’s Chambal River (Bhind-Pachnada) recorded the highest concentration of dolphins, whereas the Narora-Kanpur stretch had an alarmingly low presence.
• The survey emphasized the impact of river depth, pollution levels, and tributary confluences on dolphin habitats.

4. Research team takes big step towards making a Bose metal

(Source – The Hindu, International Edition – Page No. – 7)

What is a Bose Metal?

• A Bose metal is a type of anomalous metallic state, where the ‘anomaly’ refers to the presence of Cooper pairs without the material transitioning into a superconducting state.
• It conducts electricity better than regular metals but not with zero resistance like superconductors.

How Does It Form?

• At very low temperatures, some metals allow electrons to pair up into Cooper pairs.
• However, these pairs do not fully organize into a superconducting state.

Why is It Important?

• It challenges traditional physics, which states that metals should either be superconductors (infinite conductivity) or insulators (zero conductivity) at absolute zero.
• Studying Bose metals helps scientists understand quantum materials better.

Current Status

• Bose metals are still theoretical.
• Recent studies suggest that niobium diselenide (NbSe₂) might be a Bose metal.
• There are no practical applications yet, but research continues.

5. NASA to launch SPHEREx to explore what happened right after Big Bang

(Source – The Hindu, International Edition – Page No. – 7)

SPHEREx: NASA’s New Space Telescope:

• SPHEREx (Spectro-Photometer for the History of the Universe, Epoch of Reionization, and Ices Explorer) is a space telescope by NASA.

• It is set to launch on March 4 aboard a SpaceX Falcon 9 rocket from Vandenberg Space Force Base, California.
• The mission aims to study the early universe, galaxy formation, and water ice in space.
• It will map the entire sky in 102 colors to create a 3D cosmic map.
• SPHEREx will study cosmic inflation, the rapid expansion of the universe after the Big Bang.
• It will collect data on 450 million galaxies and over 100 million stars in the Milky Way.
• The telescope will also help scientists find water ice in space, which is important for life.
• It will work for two years to better understand how galaxies and planets form.
• SPHEREx will be launched along with NASA’s PUNCH mission, which will study the Sun’s outer atmosphere and solar wind.

6. Indie film Anora triumphs at Oscars with five victories

(Source – The Hindu, International Edition – Page No. – 14)

The 97th Academy Awards:

• Anora won five awards, including Best Picture, highlighting the success of independent cinema.
• Director Sean Baker used his acceptance speech to advocate for indie filmmakers.
• Conan O’Brien hosted the event, avoiding political controversies, unlike last year’s host, Jimmy Kimmel.
• Emilia Perez faced controversy over its transgender star’s past offensive tweets, affecting its Oscar chances.
• Brazil won its first Best International Feature Oscar for I’m Still Here.
• Adrien Brody won his second Oscar for The Brutalist, joining an elite club of double winners.

7. Heir to throne casts doubt on Japan monarchy’s survival

(Source – The Hindu, International Edition – Page No. – 15)

Political System In Japan:

• Type of Government: Japan is a constitutional monarchy with a parliamentary system.
• Emperor’s Role: The Emperor is the symbol of the state with no political power, as per the 1947 Constitution.
• Legislative Branch: The National Diet (bicameral parliament) consists of:
  • House of Representatives (Lower House) – 465 members
  • House of Councillors (Upper House) – 248 members
• Executive Branch: The Prime Minister, elected by the Diet, is the head of government.
• Judiciary: Independent Supreme Court and lower courts ensure judicial review.
• Political Parties: Dominated by the Liberal Democratic Party (LDP) and opposition parties.
• Decentralization: Japan has 47 prefectures with local governments.
• Constitution: The Pacifist Constitution (1947) limits military use to self-defense.

check more – 03 March 2025 : Daily Current Affairs