28th June, 2025

Report
The onMinister
Prime Value ofofOutput fromCyprus
India Visits Agriculture and
after 23 Allied Sectors (2011-12 to 2023-24)
years

The National Statistics Office (NSO) released a report offering a Initiatives for Agriculture & Allied Sectors
comprehensive overview of India's agricultural performance over Agriculture Investment Fund (Rs 1 lakh crore):
the past decade. To address the existing gaps in post-harvest
Key Highlights infrastructure in the country.
Gross Value Added (GVA) in agriculture and allied sectors rose Digital Agriculture Mission: To support various
by ~225% (current prices), while Gross Value of Output (GVO) digital agriculture initiatives.
grew by 54.6% (constant prices) rom 2011–12 to 2023–24. Pradhan Mantri Matsya Sampada Yojana: Aims to
Crop sector: Largest contributor to total agriculture GVO in 2023- formalize the fisheries sector & support fisheries
24 with 54.1%. micro and small enterprises.
Uttar Pradesh is the top cereal-producing state. Mission for Integrated Development of Horticulture
Paddy & wheat constitute approximately 85% of GVO of all (MIDH): A Centrally-Sponsored Scheme for the
cereals in 2023-24. holistic growth of the horticulture sector.
Floriculture: GVO nearly doubled from 2011-12 to ₹28.1 thousand Other: Fisheries & Aquaculture Infrastructure
crore in 2023–24. Development Fund; PM Fasal Bima Yojana; Rashtriya
Condiments & Spices: Madhya Pradesh (19.2%) is the top Krishi Vikas Yojana, etc.
contributor, followed by Karnataka (16.6%) & Gujarat (15.5%).
Fishing & Aquaculture: Contribution increased from 4.2% in
2011-12 to 7.0% in 2023-24.
The share of inland fish has decreased to 50.2%, whereas the share of marine fish has increased from 2011-12 to 2023-24.
Importance of Agriculture and Allied Sector
Contribution to GDP: ~16% of the country's GDP for FY24 (Economic Survey 2024-25).
Livelihood: It supports ~46.1% of the population.
Challenges: Low Agricultural productivity per unit of land, low farmer income, Overexploitation of Water Resources, climate
change, & extreme weather events, etc.

India Rejects Supplemental Award by Court of Arbitration (CoA) on Indus Water Treaty (IWT)
The Hague-based CoA's Ruling: Held that India holding the IWT “in abeyance” does not affect its authority to rule on the disputes
regarding India’s Kishenganga and Ratle hydroelectric projects in Jammu & Kashmir.
Following the 23 April 2025 terrorist attack in Jammu and Kashmir, India declared the Indus Waters Treaty "in abeyance" until
Pakistan ends cross-border terrorism.
Background of the Dispute: 3-Step Dispute Resolution Mechanism
Treaty Signed: On 1960, between India and Pakistan,
brokered by the World Bank.
Water Allocation:
♦ India: Unrestricted use of Eastern rivers (Sutlej, Beas, Permanent Neutral Expert Court of
Ravi) Indus To deal with Arbitration
♦ Pakistan: Rights over Western rivers (Indus, Jhelum, Commission unresolved A Seven -
Chenab) Required to differences on member
Dispute: Kishenganga (on Jhelum tributary) and Ratle (on meet at least water-sharing. arbitral tribunal
Chenab) projects are central to the conflict. once every year to deal with the
2015: Pakistan objected to design features, sought neutral to resolve disputes.
expert via World Bank. questions
2016: Pakistan withdrew request, demanded Court of about
Arbitration instead. implementation
India filed a separate request for the matter to be referred of treaty.
to a ‘Neutral Expert’.
2022: World Bank appointed both a neutral expert and the Court of Arbitration.
India accepted the neutral expert process.
Why did India Reject the Award?
Illegality of the Court: Court of Arbitration was "illegally constituted" in "brazen violation" of the Indus Waters Treaty 1960,
rendering its proceedings and decisions "illegal and per se void."
Sovereign Right to Suspend Treaty: India is exercising its "rights as a sovereign nation under international law".
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 India’s External Debt Rises
As per the RBI report, India’s external debt rose to US$ 736.3 billion (March 2025), marking an increase of US$ 67.5 billion over the
previous year, excluding valuation effects.
Valuation effect occurs due to the appreciation of US dollar vis-à-vis the Indian Rupee.
Key Highlights
External Debt to GDP Ratio: Increased to 19.1%, up from 18.5% in March 2024.
Long Term & Short Term Debt: long-term debt ($601.9 billion) rose marginally while the share of short-term debt fell marginally
to 18.3%.
Composition: US dollar (54.2%) remained the largest component, followed by the Indian rupee (31.1%), Japanese yen, & SDRs
respectively.
Borrowers: Non-financial corporations (except the central bank) held the highest share i.e., 35.5%, followed by deposit-taking
corporations (27.5%) & general government (22.9%).
Debt Instrument: Loans (34%) remained the largest component, followed by currency and deposits.
Debt service (i.e., principal repayments and interest payments) marginally declined by 0.1%.
What is External Debt?
External debt refers to money borrowed from a source outside the country.
Sources: Foreign commercial banks, international financial institutions like IMF, World Bank, etc. and government of foreign
nations.

Concerns with Rising External Debt

Repayment Burden Rising Inflation Crowding Out of Balance of Payments

As external debt is often Prolonged inflation Productive Investment Pressure
in foreign currencies, raises interest rates, Higher debt servicing Persistent debt
exchange rate slows growth, and limits government accumulation can
fluctuations can increases the spending on widen current account
increase repayment debt-to-GDP ratio. infrastructure, health, deficits, weakening
costs. and education. external sector stability.

“Skills
The PrimeFor The Future:
Minister Transforming
of India Visits CyprusIndia's Workforce
after 23 years Landscape" Report
The report unveiled by the Ministry of Skill Development and Entrepreneurship examines India's skills landscape against the
backdrop of the emerging knowledge-driven global economy.
Key Highlights
India's skills landscape
Low-competency Occupations: About 88% of the workforce is engaged in low-competency occupations (2023-24).
Skill Mismatch: Many workers occupy roles that do not correspond to their education levels, either due to over qualification or
under qualification.
Structural Issues: Over qualification in low-skill jobs reflects the lack of sufficient high-skill job opportunities whereas under
qualified workers in high-skill roles reveal gaps in access to education and training, especially for low-income & rural groups.
Skill Shortages in High-Skill Jobs: As many lacking the requisite education for these roles.
Impact of Skill Mismatch
Reduces Economic Productivity: As overqualified workers (underuse of potential) occupy low-skill roles while under qualified
workers struggle in high-skill positions.
Inefficient Human Resource Allocation: Misaligned skills limit labor market efficiency, hinder innovation, & undercut the
country’s ability to harness its demographic dividend.
Limits Social & Economic Mobility: Mismatches reinforce existing inequalities, limiting upward mobility and widening socio-
economic disparities.
Migration & Brain Drain: Gap in opportunities can spur large-scale migration to other states or even countries.

Recommendations
Revamp Technical and Vocational Education and Training (TVET): Align course offerings & curricula with evolving
industry needs and technological advancements.
Establish a standardized mechanism to assess current and future skill requirements, supporting evidence-based
policymaking and targeted interventions.
Industry Engagement and Accountability: Incentivize industries to hire from certified skill pools, & and take accountability
for creating market-aligned training.
Promote Lifelong Learning: Develop incentives for continuous skilling, upskilling, and reskilling of the workforce to
meet evolving job demands.

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 India’s Start-Up Ecosystem Sees Exponential Growth Over the Last Decade, Says Meta
Report
India’s start-up ecosystem growth was due to a surge in early-stage funding, digital penetration, and consumer affluence across
both metros and non-metro regions.
Startup Definition: A private limited company, partnership, or limited liability partnership (LLP) with turnover under ₹100 crore.
To be considered a startup for up to 10 years from incorporation under the Companies Act, 2013.
Growth Levers for India’s Startup Ecosystem
AI Adoption: 70% of startups were integrating artificial intelligence into their business operations.
In marketing alone, 87% of AI adopters reported improvement in cost per acquisition.
Cross-Border Expansion: Half of the startups target global markets (USA, UAE, UK top destinations).
Omnichannel Presence: Over 2/3rd blend online-offline models. E.g., Digital discovery via ads/Reels drives consumers to
physical stores for high-value purchases.
Tier 2/3 Market Focus: Nearly all startups expanding here; service-based ones enter earlier via WhatsApp/regional influencers.
Thriving Startups Ecosystem in India:
Startup boom fueled by capital & policy (see image): DPIIT-recognized startups reached over 150 thousand in 2024.
51% DPIIT recognized startups are from non-metro cities
Over $380 Bn+ combined valuation of Indian Unicorns.
A “unicorn” is referred to as a privately held startup company with a valuation of over $1 billion.
India, reflecting its growing global clout in the startup ecosystem, ranks third on the Hurun Global Unicorn Index 2025.

Government Startup Initiatives

Fostering Innovation & Entrepreneurship in India

Startup India Startup India Fund of Funds Credit Atal Meity Startup
To foster Seed Fund (FFS) Guarantee Innovation Hub (MSH)
innovation and (SISFS) Boosts access Scheme Mission (AIM) Fosters vibrant
create a Supports to domestic (CGSS) Promotes innovation
thriving startup startups at capital for Provides credit innovation & ecosystem by
ecosystem various stages startups and guarantees for entrepreneurs uniting
across the including proof venture capital loans to hip across technology
nation. of concept, funds. DPIIT-recognis India through stakeholders
prototype ed startups. various and promoting
development, programs. growth.
and market
entry.

Also In News

Lord Jagannath’s Rath Yatra Adi Karmyogi Programme

PM extends greetings on the occasion of Lord Jagannath’s Rath Ya- The Ministry of Tribal Affairs launched the Adi Karmyogi Programme.
tra. About the Adi Karmyogi Programme
About Rath Yatra (Chariot Festival) Aim: Building a cadre of highly motivated officers and change
It is a major annual Hindu festival held in the city of Puri, Odisha. makers dedicated to grassroots transformation.
It marks the annual ceremonial journey of Lord Jagannath, along Objective: To take capacity-building to about 20 lakh field-level
with his siblings Lord Balabhadra and Devi Subhadra, from the stakeholders by creating a batch of trainers and master trainers
Jagannath Temple to the Gundicha Temple. at the State, district, and block levels.
The festival begins on the second day of the Asadha month It seeks to bring a fundamental shift in the attitude and motivation
(June–July). of field-level officials, emphasizing citizen-centric ideation and
After a week the deities return to the main temple in a return delivery.
procession known as Bahuda Yatra. Target: Reaching 1 lakh tribal villages and habitations.

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 Current Account Balance Vera C. Rubin Observatory

India’s current account balance recorded a surplus of $ 13.5 billion The Vera C. Rubin Observatory released its first images of the cos-
(1.3% of GDP) in Q4 FY25. mos.
It led to narrowing India’s current account deficit to $ 23.3 billion About Vera C. Rubin Observatory
(0.6% of GDP) during FY25 down from $26 billion (0.7% of GDP) The observatory located in Chile is designed to conduct the
in FY24. Legacy Survey of Space and Time (LSST), a 10-year project to
On the annual basis India generally experiences a trade deficit. map the southern sky.
Current Account Balance It has been named after Astronomer Vera C. Rubin, who provided
It measures the flow of goods, services, income, and current pioneering evidence of dark matter.
transfers between a country and the rest of the world over a
specific period.
The Current Account Balance is a key component of a country's
Balance of Payments (BoP). IBAT Alliance
Major components of a current account are goods, services,
income, and current transfers.
IBAT Alliance doubled its investment in biodiversity data from 2023
to 2024
Increased investment will support three key global biodiversity
Per- and polyfluoroalkyl substances (PFAS) datasets i.e., World Database on Protected Areas, IUCN Red List
and World Database of Key Biodiversity Areas.
Researchers discovered nearly 20 species of bacteria capable of About IBAT Alliance
breaking down PFAS Headquarter: The UK
About PFAS Genesis: Founded in 2008
These are chemicals having carbon-fluorine bonds, which are It is a coalition of four of the world’s largest and most influential
very strong and do not degrade easily. conservation organisations.
These chemicals can resist grease, oil, water, and heat. These four organizations are: Birdlife International, Conservation
Application: Cookware, food packaging, food processing International, The International Union of Conservation for Nature
equipment, Fabrics, Paints, Foams etc. (IUCN), The United Nations Environment Programme World
Impact: It persists in the environment, contaminating air, water, Conservation Monitoring Centre (UNEP-WCMC)
and soil, and bioaccumulates in humans and animals. Mission: To provide data, tools and guidance that help
Bioaccumulation is the process by which toxins enter the organisations act on biodiversity related risks etc.
food web by building up in individual organisms.

Jellyfish
SPREE Scheme
Cochin backwaters of Kerala, face seasonal invasions of jellyfish, as
In the 196th Meeting, Employees’ State Insurance Corporation (ESIC) a symptom of cumulative ecosystem stress.
approved the re-launch of the Scheme to Promote Registration of About Jellyfish
Employers/Employees (SPREE). Type: Part of the cnidarian group (alongside corals and
About SPREE Scheme anemones),
Initial Success (Launched in 2016): It facilitated the registration Habitation: As pelagic organisms, they live in open oceans
of over 88,000 employers and 1.02 crore employees under the (tropical to Arctic), drifting with currents despite limited swimming
Employees' State Insurance Act. ability.
Renewed SPREE (2025): A one-time enrollment window will be Features: Possess stinging cells (nematocysts) for capturing prey
open for unregistered employers and left-out workers. and defense; Bodies made of 95% water for camouflage; Tolerate
Focuses on voluntary compliance rather than penalization low-oxygen (hypoxic) environments
Other agendas to improve ESIC About Jellyfish Blooms
Approves Amnesty Scheme 2025 (2025 – 2026): Aim to reduce Sudden population explosions of jellyfish in marine or brackish
litigation and promote ease of doing business. water ecosystems.
Revised ESI AYUSH Policy: Approval for Yoga therapists & Caused by warmer sea surface temperatures, eutrophication,
Panchakarma attendants in ESIC hospitals. overfishing, and pollution.

Goldilocks Economy

According to the Finance Ministry Indian Economy’s health is in a relative Goldilocks situation.
About Goldilocks situation of Economy
Concept: It describes an ideal state for an economy where it's not expanding or contracting by too
much.
In this state of the economy, there are certain features attached.
The unemployment rate in the economy is really low.
There is steady growth in the Gross Domestic Product (GDP) numbers and companies report
better earnings.
The retail inflation and the interest rates are relatively low.
The Goldilock scenario is good for investors as companies perform well and stocks rally.

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