Economic Survey 2024-25: State of the Economy

Source: PIB 

Why in News? 

• The Finance Minister Nirmala Sitharaman tabled the Economic Survey 2024-25 in Parliament, It provides a roadmap for reforms and growth, setting the stage for the Union Budget 2025. 

What are the Key Highlights of the Economic Survey 2024-25: State of the Economy? 

• Global Economy: The global economy in 2024 experienced moderate but uneven growth, with the International Monetary Fund (IMF) projecting 3.2% growth for the year, with a slowdown in manufacturing due to supply chain disruptions while the services sector remained strong.  
  • Inflation eased globally, yet services inflation remained persistent, leading to divergent monetary policies across central banks.  
• India’s Economy: India's Gross domestic product (GDP) is projected to grow between 6.3-6.8% in FY26 (2025-26). 
  • India’s real GDP is estimated to grow by 6.4% in FY25 (2024-25), driven by agriculture and services, while manufacturing faces challenges.  
• Sector-Wise Performance: 
  • Agriculture: 3.8% growth in FY25, driven by record Kharif production and strong rural demand. 
  • Industry & Manufacturing: 6.2% growth in FY25, with manufacturing slowing due to weak global demand. 
  • Services: Fastest-growing sector at 7.2% in FY25, led by Information technology, finance, and hospitality.  
  • External Sector: Overall exports (merchandise+services) grew by 6% (YOY) in the first nine months of FY25. Services sector by 11.6% during the same time.
    • Merchandise exports grew 1.6%, while imports rose 5.2%, widening the trade deficit.
    • India remained the top global recipient of remittances, helping contain the current account deficit at 1.2% of GDP. 
    • Overall, India’s economic outlook remains positive, driven by domestic resilience and structural reforms, though risks from global uncertainties persist. 

What are the Challenges Facing India’s Economy? 

• Geopolitical Uncertainties: Russia-Ukraine war and Israel-Hamas conflict have impacted trade, energy security, and inflation. 
  • Suez Canal disruptions forced ships to reroute via the Cape of Good Hope, increasing freight costs and delivery times. 
  • Trade policy risks and protectionism in major economies impact India’s exports and supply chains. 
• Inflation and  Investment: Global inflation easing, but risks of synchronized price increases persist. 
  • Food inflation remains a concern, driven by weather shocks and supply chain disruptions . 
  • Weak global manufacturing demand has pressured India’s manufacturing sector, slowing private investment. 
• Financial Risks: State fiscal stress due to rising subsidies, lower tax collections, and dependency on central transfers. 

Way Forward 

• Managing Geopolitical Uncertainties: Diversify trade routes and partners to reduce dependency on conflict-affected regions. 
  • Strengthen energy security by increasing domestic renewable energy production and securing long-term import agreements. 
  • Enhance trade resilience through bilateral agreements and participation in global supply chain diversification. 
• Controlling Inflation: Expand food buffer stocks and strengthen supply chains to stabilize food prices. 
  • Promote climate-resilient agriculture to mitigate weather-related price shocks. 
  • Encourage private sector investment through incentives, tax reforms, and ease of doing business initiatives. 
• Strengthening Financial: Improve tax collection mechanisms to enhance state revenues and reduce dependency on central transfers. 
  • Rationalize subsidies and implement targeted welfare schemes to ensure fiscal discipline. 
  • Encourage states to adopt fiscal responsibility measures for long-term economic sustainability. 

Read more: Economic Survey 2024-25

Need of Sovereign Wealth Fund for India

Source: FE 

Why in News? 

India is contemplating creating a Bharat Sovereign Wealth Fund (BSWF) or The Bharat Fund (TBF) to tap a reservoir of national wealth that lies dormant in India’s economy. 

What is a Sovereign Wealth Fund (SWF)? 

• About: SWFs are government-owned funds created from state surpluses, often from a variety of sources like  natural resources, trade surpluses, or budget excesses. 
  • SWFs help governments generate wealth through strategic investments, ensuring financial stability and economic growth. 
• Characteristics: Santiago Principles 2008 defines SWFs as having 3 key characteristics: 
  • It is owned by the general government, which includes both central government and sub-national governments. 
  • It Includes investments in foreign financial assets. 
  • They invest for financial objectives. 
  • These key elements exclude public pension funds, owned by policyholders, and central bank reserve assets, which are not invested. 
• Types: 
  • Stabilization Funds: Absorb shocks from volatile revenues, ensuring fiscal consistency. 
  • Future Generation Funds: Invest surpluses for long-term wealth, benefiting future generations. 
  • Public Benefit Pension Reserve Funds: Fund pension systems to meet long-term obligations. 
  • Reserve Investment Funds: Manage and grow foreign exchange reserves, stabilizing currency. 
  • Strategic Development SWFs: Invest in key sectors for national development. 
  • Foreign Currency Reserve Assets: Maintain currency stability and manage global trade power. 
• Examples: Norway Government Pension Fund Global (USD 1.7 trillion, world’s largest SWF), China Investment Corporation (USD 1.35 trillion), Abu Dhabi Investment Authority (USD 993 billion) etc. 
• SWFs in India:  
  • 2007-08: The SWF idea in India gained traction in 2007-08 due to a surge in capital inflows (exceeding USD 108 billion in a year) but lost momentum after the Global Financial Crisis 2008. 
  • 2010-11: The Planning Commission revived the SWF proposal in 2010-11, suggesting a USD 10 billion fund funded by foreign exchange reserves, PSUs, or budget allocations. 
  • 2015: NIIF was set up that remains India’s main structured investment fund. 

Why does India Need a SWF? 

• Unlocking Public Sector Wealth: A SWF could unlock an estimated Rs 40 lakh crore (USD 450-500 billion) across 80 listed enterprises by investing and increasing returns from these state-owned entities. 
• Fiscal Deficit Reduction: A 2% divestment from government equity could generate over USD 10 billion annually, reducing India’s fiscal deficit from 4.9% to 4.6% of GDP. 
• Diversifying Investments: The 2007-09 crisis highlighted the risks of relying on 'secure' securities like US treasuries. 
  •  India’s SWF could diversify investments and seek higher returns. 
• Capitalizing on Excess Reserves: India’s excess forex reserves, covering over nine months of imports, could be better utilized to boost national wealth. 
• Support for Strategic Sectors: It can drive long-term growth and innovation by investing in sectors like electric vehicles, hydrogen energy, semiconductors, biotechnology, and AI, positioning India as a global leader. 
• Social Welfare: SWFs can generate non-debt financial resources for social sector commitments, enhancing fiscal flexibility for welfare programs and national growth investments. 
• Projecting Soft Power: SWFs could support advocacy, incubate ventures, provide disaster relief, and invest in SWFs of other nations like Norway boosting India’s international standing and soft power. 

What Concerns are Associated with SWFs? 

• Current Account Deficit: SWFs are typically for countries with mineral wealth or trade and budget surpluses but India faces persistent current account deficits and a significant fiscal deficit.  
• Macroeconomic Risks: Global growth slowdown, rising sovereign debt, and tightening financial conditions could impact SWFs by lowering investment returns, straining fiscal health, and increasing financial instability. 
• Geopolitical Tensions: Geopolitical tensions and the shift away from globalization could disrupt SWF investment strategies, affecting cross-border investments, supply chains, and trade policies. 
• Environmental Risks: SWFs risk losses from climate-exposed industries and stranded assets if environmental policies fail, particularly in fossil fuels. 
• Technological Vulnerabilities: SWFs managing large sums of public money face growing risks of fraud and data theft.  
  • Rapid advancements in technology could disrupt traditional investment models. 

Way Forward 

• Clear Governance Framework: Establish a clear legal and regulatory framework to ensure transparency, accountability, and compliance with the Santiago Principles for best practices in SWF governance. 
• Strategic Asset Allocation: Invest in high-growth sectors such as AI, biotechnology, EVs, and semiconductors to enhance India’s global standing. 
  • Consider co-investment models with global funds to leverage expertise. 
• Fiscal Prudence: Implement phased allocation of resources, ensuring a balance between fiscal deficit management and investment goals. 
• Risk Management: Develop strategies to mitigate macroeconomic risks, including market volatility and financial crises. 
  • Adopt ESG (Environmental, Social, Governance) principles to avoid stranded assets in climate-sensitive sectors. 

Drishti Mains Question:  What are Sovereign Wealth Funds (SWFs)? Discuss its potential benefits and associated concerns in India?

 

Contract Farming in India’s Agriculture

Source: IE 

Why in News? 

Contract farming has had a positive impact in India, particularly for processed potatoes, and this success can be extended to other crops and food products. 

What is a Contract Farming Model? 

• About: Contract farming is a system where farmers (producers) and buyers enter into an agreement regarding the production and marketing of farm products. 
  • The agreement specifies the price, quantity, quality standards, and delivery date for the farmer's produce before the production process begins. 
• Advantages: 
  • Efficient Supply Chain Management: It reduces wastage of perishables ensuring fair pricing for producers and consumers. 
  • Access to Credit and Inputs: Farmers benefit from credit, inputs, and extension services provided by contracting firms for improved quality and production. 
  • Enhanced Operational Efficiency: It helps firms reduce costs, boost efficiency, and meet demand for high-value, non-traditional crops. 
  • Increased Income for Farmers: Contract farmers often earn higher incomes than non-contract farmers due to improved yields, guaranteed prices, and efficient practices. 
    • An RBI paper revealed that farmers receive only 31%–43% of the consumer price for fruits and vegetables that can increase under contract farming. 
  • Meeting Food Safety Standards: Firms often train farmers in food safety practices, such as using organic fertilizers and pesticide control, to meet international standards like the Maximum Residue Level (MRL). 
  • Better Price for Consumers: It cuts intermediaries, offering better prices for consumers and competitive rates for products without middlemen markups. 
• Concerns: 
  • Power Imbalance: Small farmers often lack bargaining power with large agribusinesses that may lead to exploitative terms, especially when dependent on contracts and investments in specific crops or assets. 
  • Risk of Default: Farmers may default if market prices rise, while firms may refuse procurement after a price crash, leaving farmers without a market. 
  • Loss of Control Over Land: Firms often supply all inputs, leaving farmers with only land and labor to offer. It can create situations of forced cultivation and indirect land grabs by firms. 
  • Environmental Degradation: Intensive contract farming can harm the environment through excessive water use, monocropping-related infestations, and increased pesticide and fertilizer application. 
  • Food Insecurity: Farmers might prioritize high-value cash crops for contract farming at the cost of growing food crops, affecting local food security. 
• Policy Status: 
  • Model APMR (Agricultural Produce Marketing Regulation) Act, 2003: It introduced compulsory registration for contracting firms, dispute resolution, market fee exemptions, and protected farmers' land ownership under contracts. 
  • Model Agriculture Produce and Livestock Contract Farming Act, 2018: Key provisions included state-level authorities for contract farming implementation, promotion of FPOs, insurance for contracted produce. 

What are Key Points on Potato Production in India? 

• About Potato: A potato is a starchy root vegetable rich in carbohydrates. It originated in the Peruvian-Bolivian Andes region of South America. 
  • Potatoes need friable, porous, well-drained soil. 
• Potato Production: India is the 2nd-largest potato producer globally after China. 
  • Top Producer: Uttar Pradesh, West Bengal, and Bihar. 
  • The Kufri varieties of potato were developed by the Central Potato Research Institute (CPRI), Shimla. 
• Legal Dispute (PepsiCo vs. Indian Farmers Case): In 2016, PepsiCo filed lawsuits against farmers in Gujarat, accusing them of unauthorized cultivation of FL 2027 (potato variety) and demanded compensation.  
  • In 2024, the Delhi High Court reinstated PepsiCo’s FL 2027 registration under the Protection of Plant Varieties and Farmers' Rights Act, 2001 reviving the dispute. 

Way Forward 

• Enhancing Farmers' Bargaining Power: The government should promote collective action through FPOs and cooperatives to help small landholders negotiate better terms and reduce exploitation. 
• Land Reform Programs: Land reform programs like land consolidation should be strengthened to ease access to land leasing and contracts, addressing ownership issues and enabling smallholders to participate more effectively in contract farming. 
• Product-Specific Strategies: Policymakers should create tailored contract farming strategies for different crops, regions, and market needs to maximize benefits, especially in high-value sectors. 
• Protection of Farmers' Interests: A legal framework should protect farmers from exploitation by ensuring clear, fair, and legally binding agreements, with strong dispute resolution mechanisms. 
• Partnerships with Firms: The government should partner with agribusinesses to align interests with farmers' welfare, promote fair practices, and focus on technology transfer, farmer training to boost productivity and reduce risks. 

Drishti Mains Question:  Q. Examine the advantages and concerns associated with contract farming in India. How can policy reforms address these concerns?

National Critical Mineral Mission

Source: TH 

Why in News?  

The Union Cabinet approved the National Critical Mineral Mission (NCMM) with a total outlay of Rs 34,300 crore over seven years.  

• The mission aims to strengthen India's self-reliance in critical minerals, in alignment with the Atmanirbhar Bharat vision. 

What is the National Critical Mineral Mission (NCMM)? 

• Objective: The NCMM aims to reduce India's dependence on imports of critical minerals and ensure self-reliance for high-tech industries, clean energy, and national defense. 
  • The mission will cover all stages, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products.  
  • The mission will intensify the exploration of critical minerals within the country and in its offshore areas. 
• Approach:  The NCMM will adopt a "whole-of-government" approach, working closely with various ministries, Public Sector Undertakings (PSUs), private companies, and research institutions. 
  • A fast-track approval process will be established to expedite mining projects for critical minerals. 
• Stockpiling Minerals: NCMM provisions to develop stockpiles of critical minerals will ensure that India has sufficient reserves to meet future demands. 
• International Strategy: Encourages Indian companies to acquire critical mineral assets abroad and build trade ties with resource-rich nations. 
• Infrastructure: The mission will establish mineral processing parks, promote recycling of critical minerals, and support research in related technologies, including the creation of a Centre of Excellence for Critical Minerals. 
  • Encourages industries to establish processing units within India through financial incentives. 
  • Expands Promoting Innovations in Individuals, Startups And MSMEs (PRISM) initiative to fund startups and Micro, Small and Medium Enterprises (MSME) in the critical minerals sector. 

What is the Need for NCMM? 

• Role of Critical Minerals: 
  • Green Energy Transition: Critical Minerals are essential for solar panels, wind turbines, electric vehicle (EV) batteries, and hydrogen fuel cells. 
  • Electronics & Telecommunications: Used in semiconductors, fiber optics, and circuit boards. 
  • Defense & Aerospace: Required in missile guidance systems, aircraft, and satellite technologies. 
  • Medical Equipment: Key component in  Magnetic Resonance Imaging (MRI) machines, pacemakers, and other advanced healthcare technologies. 
• India's Dependence on Imports: India heavily depends on China for six critical minerals (bismuth, lithium, silicon, titanium, tellurium, and graphite) highlighting its vulnerability to supply disruptions. 
  • The 30% annual growth in lithium-ion battery demand, driven by EV adoption, makes NCMM essential to support this surge. 
• Global Context: China dominates the global supply chain for critical minerals like lithium, cobalt, and rare earths, refining over 60% of these minerals.  
  • The US, European Union, and Japan have implemented policies to secure their own supplies. 
  • India needs a strong strategy for long-term access to critical minerals, making NCMM crucial for global competitiveness. 

What are the Recent Developments Related to Critical Minerals? 

• Critical Mineral List: India has released a list of 30 critical minerals for India.   
  • These minerals are Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE,Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium,Zirconium, Selenium and Cadmium.  
• Legislative Amendments: The Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023 to streamline critical mineral exploration, resulting in the auction of 24 strategic mineral blocks. 
  • The 2023 amendment to the Offshore Areas Mineral (Development and Regulation) Act (OAMDR), 2002, introduces a transparent auction process for offshore mineral rights, mandates composite licenses for exploration and production. 
• Exploration Projects: The Geological Survey of India (GSI) has completed 368 critical mineral exploration projects, with 195 ongoing in 2024-25, and 227 planned for 2025-26. 
• Customs Duty Elimination: The FY25 Union Budget removed customs duties on critical minerals to promote domestic production and encourage processing facilities. 
• International Collaboration: Khanij Bidesh India Ltd (KABIL), a joint venture of the Ministry of Mines, acquired 15,703 hectares in Catamarca, Argentina, for lithium exploration and mining. 

Drishti Mains Question:  Q. Discuss the significance of the National Critical Mineral Mission to address India's challenges in securing these essential resources?

Reorganising Denotified Tribes as SC, ST and OBC

Source: TH 

Why in News? 

An ethnographic study by the Anthropological Survey of India (AnSI) and Tribal Research Institutes (TRIs) recommended the  inclusion of 179 Denotified Tribes (DNTs), Nomadic Tribes (NTs), and Semi-Nomadic Tribes (SNTs) in the SC, ST, and OBC lists of various states and union territories. 

• The August 2022 study is under NITI Aayog panel review and awaits final approval. 

What are the Key Highlights of the Study on Denotified, Nomadic, and Semi-Nomadic Tribes? 

• New Additions: Of the 179 recommended communities, 46 are proposed for OBC, 29 for SC, and 10 for ST status.  
  • Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Madhya Pradesh, and Rajasthan are most impacted, with Uttar Pradesh having the highest number of proposed changes. 
• Issues of Non-Traceability: 63 communities were "not traceable," suggesting they have assimilated, changed names, or migrated.  
  • This challenges the categorization process and raises concerns about identifying communities that have undergone significant social integration. 
• Categorization of Existing Communities: The study also suggests correcting the categorization of 9 existing communities that were either misclassified or inadequately listed in state or central lists. 

What are the Procedure for Altering the SC/ST/OBC List in India? 

• Inclusion Criteria: 
  • Scheduled Castes (SC): Extreme social, educational, and economic backwardness, often linked to the historical practice of untouchability. 
  • Scheduled Tribes (ST): Indications of primitive traits, distinct cultural practices, geographical isolation, and a general state of backwardness. 
  • Other Backward Classes (OBC): Social, educational, and economic backwardness, as well as inadequate representation in government services. 
• Procedure: 
  • Initiation and Scrutiny: The proposal is first initiated by State Governments/UTs  for the inclusion or exclusion of a community in the SC/ST/OBC list which is then supported by the Registrar General of India (RGI) and the NCSC or NCST. 
    • Inclusion in the Central OBC list requires recommendations from the National Commission for Backward Classes (NCBC) as per Section 9 of the NCBC Act, 1993. 
    • Procedure for inclusion in the SC/ST category is governed by Article 341 (for SC) and Article 342 (for ST) of the Constitution. 
    • The proposal is scrutinized by the Ministry of Social Justice and Empowerment, which evaluates it based on socio-economic factors and historical data, with inputs from the RGI. 
    • Amendments to lists are subject to proposal reviews and approval by the Union Cabinet. 
  • Parliamentary Process: A Constitutional Amendment Bill is introduced in Parliament to formalize the proposed changes to the SC/ST/OBC list. 
    • The Bill requires a special majority, i.e., a two-thirds majority of members present and voting, along with the support of more than 50% of the total strength of the House. 
  • Presidential Assent and Implementation: After being passed by both Houses of Parliament, the Bill is sent to the President for assent. Once the President grants assent, the amendments to the SC/ST/OBC list are officially enacted. 

Who are DNTs, NTs, and SNTs?  Click to Read: Denotified Tribes (DNTs), Nomadic Tribes (NTs), and Semi-Nomadic Tribes (SNTs)

Drishti Mains Question:  What are the constitutional safeguards and schemes available for the socio-economic upliftment of Scheduled Castes, Scheduled Tribes and Other Backward Classes in India?

Nicobarese Tribe

Source: TH 

Why in News?  

A study published in the European Journal of Human Genetics has revised the timeline of Nicobarese migration to the Nicobar Islands. 

What are the Key Findings of the Study on Nicobarese Tribe? 

• Revised Migration Timeline: Previous studies estimated that the Austroasiatic ancestors of the Nicobarese arrived to Nicobar Islands over 11,000 years ago. 
  • The new study, using advanced Deoxyribonucleic acid (DNA) analysis, corrected this estimate to approximately 5,000 years ago. 
• Genetic Link: The study found that the Nicobarese share ancestral ties with the Htin Mal community(ethnic group native to Laos-Thailand region). 
  • This supports the idea that their ancestors migrated from Southeast Asia, rather than South Asia. 
• Preservation of Genetic Identity: Due to their geographical isolation, the Nicobarese have maintained their genetic identity with minimal external influence. 
  • This has allowed researchers to trace their ancestry more precisely. 
• Linguistic Continuity: Despite their genetic ties to Southeast Asia, the Nicobarese have retained their Austroasiatic language roots (Khmuic branch), linking them to other Southeast Asian populations. 

 

What are the Key Facts About the Nicobarese Tribe? 

• Geography: The Nicobarese live on the Nicobar Islands in the Bay of Bengal, part of India's Andaman and Nicobar Islands Union Territory. 
  • The Nicobar Islands consist of 19 islands, the major islands are Car Nicobar, Kamorta, Nancowrie, and Great Nicobar, which have both hilly and flat terrains. 
    • Great Nicobar is the southernmost and largest of the Nicobar Islands. 
• Ethnic Group: The Nicobarese belong to the Mongoloid ethnic group and have a population of over 27,000. 
  • While not divided into tribes, they are classified into six territorial groups: Car Nicobar, Chowra, Teressa with Bompoka, Central Group, Southern Group, and the Shompen (inland tribe of Great Nicobar).  
• Social Structure: Patriarchal joint family system known as Tuhet. 
  • With no individual ownership, the Tuhet collectively owns land, coconut trees, and pigs. 

  

Impact of Coal Dust on Plants

Source: TH 

Why in News? 

A study by the University of Southampton and NIT Rourkela found that dust from coal mining harms plants and vegetation by clogging plant stomata and reducing carbon absorption, affecting ecosystem health. 

• The dust affects vegetation up to 30 km from the mine, with the highest concentrations found along transportation routes. 

How does the Coal Mining Dust Impact the Plants? 

• Reduction in Carbon Uptake: Plants with mining dust on their leaves absorb 2-3 grams less carbon per square meter compared to dust-free plants, which could significantly contribute to higher levels of carbon dioxide in the atmosphere, exacerbating global warming over time. 
• Impact on Plant Health: The accumulation of dust on leaves obstructs the stomata, which affects photosynthesis and water vapor release.  
  • This reduction in transpiration can cause plants to overheat, leading to stunted growth, plant death and damage of local ecosystems. 
• Respiratory Risks: Open-cast mining causes severe air pollution as dust from blasting, drilling, and transportation disperses, posing serious respiratory risks. 

Death Anniversary of Mahatma Gandhi

Source: IE 

India observes Martyrs' Day, or Shaheed Diwas, every 30^th January to commemorate those who sacrificed their lives for the country’s independence, with a special focus on Mahatma Gandhi’s assassination ("Mahatma Gandhi Punyatithi"). 

•  On 30^th January 1948, Gandhi was assassinated by Nathuram Godse during an evening prayer at Birla House in Delhi. 
• Martyrs’ Day Tributes: People gather at Raj Ghat (the memorial site of Mahatma Gandhi in Delhi) for prayer meetings. 
• Note:  Martyrs’ Day is also commemorated on 23^rd March to remember the sacrifice of three extraordinary revolutionaries of India – Bhagat Singh, Shivaram Rajguru, Sukhdev Thapar. 

 

Read more: Mahatma Gandhi 

Post-Quantum Encryption Cryptography

Source: HT 

 Virtual Private Network (VPN) companies are adapting to the potential threats posed by quantum computing through the implementation of Post-Quantum Cryptography (PQC). 

• Quantum computing poses several threats to current encryption methods due to its ability to perform extremely fast calculations.  
  • Breaking Asymmetric Encryption: Quantum computers can solve complex mathematical problems like factoring large numbers and solving discrete logarithms. 
    • This could compromise encryption methods like Rivest-Shamir-Adleman (RSA) and elliptic curve cryptography (ECC), which are widely used for secure communication. 
  • Store Now, Decrypt Later (SNDL) Attacks: Cybercriminals may store encrypted data instantly and decrypt it later when quantum computers become powerful enough, endangering sensitive information. 
  • Industry-Wide Data Security Risks: Sectors like finance, healthcare, and government communications face risks of data breaches and financial losses if quantum computers break encryption standards. 
• Post-Quantum Encryption/ Cryptography (PQC): 
• PQC refers to cryptographic methods that do not rely on mathematical problems easily solvable by quantum computers.  
• It is also known as quantum-resistant, quantum-safe, or quantum-proof cryptography. 
• These methods are designed to remain secure against attacks from both classical and quantum computing systems. 
• A VPN technology encrypts data and hides a user's IP address to ensure secure communication between devices to protect data privacy and security. 

 

Read More: Post-Quantum Cryptography, Virtual Private Network 

Niger, Mali and Burkina Faso Left ECOWAS

The West African nations of Niger, Mali, and Burkina Faso have officially withdrawn from the Economic Community of West African States (ECOWAS). 

• The three countries formed the Alliance of Sahel States, seeking military support from Russia and distancing themselves from the US and France. 
  • The Sahel is a semiarid region (western and north-central Africa), a transitional zone between the Sahara desert (north) and humid savannas (south). 
• About ECOWAS: 
  • It is a regional group of 15  West African countries (before withdrawal), founded in 1975 with the signing of the Treaty of Lagos (Nigeria). 
  • It is headquartered in Abuja, Nigeria and aims to promote economic integration and shared development of the West African sub-region. 
  • It established its free trade area in 1990 and adopted a common external tariff in 2015. 
  • A peacekeeping force was sent to Liberia in 1990 during its civil war and to Sierra Leone in 1997 after the government was overthrown. 
  • Mauritania withdrew in 2000 but rejoined as an associate member in 2017. 

 

Read More: Economic Community of West African States 

First Defence Export of Ordnance Clothing

Source: TH 

The Ordnance Clothing Factory (OCF), Avadi, under the Ministry of Defence, executed India's first defence export order to the Republic of Suriname. 

• OCF is developing a "Future Soldier System" that includes lightweight, digitally printed, antibacterial camouflage uniforms and ballistic helmets (0.9 kg) to enhance soldier mobility. 
• OCF Avadi manufactures bullet-resistant jackets, ballistic helmets, vests, and bomb suppression blankets. 
• India's defence exports rose to over Rs 21,000 crore in 2023-24, up from Rs 2,000 crore in 2014 with a target of Rs 50,000 crore by 2029. 
• Suriname: It lies on the northeastern coast of South America and borders Guyana, French Guiana, and Brazil. 
  • During the colonial period, Indians arrived in Suriname as indentured labor to work on sugar plantations.  

 

Read More: 2^nd India-CARICOM Summit