6 February 2025

• RBI: The Monetary Policy Committee cut the repo rate by 25 basis points to 6.25 per cent. First rate cut in nearly five years.
• Polity: Sacred groves must be mapped and classified as forests per a December 2024 Supreme Court ruling.
• Defence: Grameen Credit Score scheme for rural micro-enterprises. NavIC satellite system details in UPSC focus.
• Defence procurement: Stryker Infantry Combat Vehicle features in news with India-US defence deals.

GS area: Economy (monetary policy)

The Reserve Bank of India's Monetary Policy Committee cut the repo rate by 25 basis points from 6.50 per cent to 6.25 per cent. This is the first rate reduction in nearly five years. The MPC meets a minimum of four times each year. Its composition:

• 6 members total: RBI Governor (chairperson), the RBI Deputy Governor in charge of monetary policy, one RBI officer, and three external members appointed by the Central Government.
• External member term: Four years; not eligible for reappointment.
• Quorum: Minimum four members.
• Decision: By majority vote; the RBI Governor has a casting vote in the event of a tie.
• Inflation target: 4 per cent with a tolerance band of plus or minus 2 percentage points. This target is set by the government in consultation with the RBI under the RBI Act 1934 as amended by the Finance Act 2016.

The repo rate is the rate at which the RBI lends short-term funds to commercial banks against eligible government securities. A cut reduces borrowing costs across the economy and is intended to spur investment and consumption.

Static linkage: Indian economy (monetary policy, RBI).

GS area: Environment (forests, biodiversity)

The Supreme Court in a December 2024 ruling held that all sacred groves across India must be mapped and classified as forests. Key facts:

• Scale: India has an estimated 1,00,000 to 1,50,000 sacred groves, the highest concentration in the world.
• Distribution: Present in every state. Highest concentration in the Western Ghats, Central Plateau and northeastern states.
• Legal framework: The Wildlife Protection Act 1972 and the Forest Rights Act 2006 (which recognises community forest resources) are the primary instruments for their protection.
• Local names: Devarakadu (Karnataka), Sarna (Jharkhand), Dev Van (Himachal Pradesh), Kavu (Kerala), Orans (Rajasthan).

Sacred groves are patches of vegetation protected by local communities for religious or cultural reasons. They serve as refugia for biodiversity, support groundwater recharge and preserve traditional ecological knowledge.

Static linkage: Biodiversity and conservation (environment and ecology).

GS area: Science and Technology

The Navigation with Indian Constellation (NavIC) system is operated by ISRO. Technical specifications for prelims:

• Satellite constellation: 7 satellites. 3 geostationary and 4 geosynchronous orbits.
• Coverage: India plus 1,500 kilometres beyond national borders.
• Position accuracy: Better than 20 metres.
• Timing accuracy: Better than 50 nanoseconds.
• Frequency bands: L5 and S bands for civilian use. A new L1 band (1575.42 MHz, compatible with GPS) was introduced from 2023.

NavIC is in the news because the Budget 2025-26 supports its integration into smartphones and wearables manufactured in India. It competes with GPS (USA), GLONASS (Russia), Galileo (EU) and BeiDou (China).

Static linkage: Science and technology (space).

GS area: Economy (financial inclusion)

The Budget 2025-26 announced the Grameen Credit Score, a credit scoring mechanism targeting rural women entrepreneurs and Self-Help Groups:

• Credit card limits: Up to 5 lakh rupees for micro-enterprises qualifying under this score.
• Target group: Rural women, SHG members and informal economy participants who lack credit histories in formal banking databases.
• Purpose: Integrate informal rural economies with the formal credit system, reducing dependence on moneylenders.

The scheme builds on the PM Mudra Yojana (micro loans up to 10 lakh rupees) and the Jan Dhan ecosystem (basic bank accounts for all). Financial inclusion data: as of 2024, over 53 crore Jan Dhan accounts have been opened.

Static linkage: Indian economy (financial inclusion).

GS area: Science and Technology (defence)

The Stryker ICV was approved for sale to India under the India-US Major Defence Partnership. Key specifications:

• Drive: 8-wheeled armoured vehicle.
• Top speed: 100 km/h.
• Range: 483 kilometres.
• Crew: 2 crew members plus a 9-member infantry squad.
• Armament: 30-millimetre cannon and 105-millimetre mobile gun variant.
• Manufacturer: General Dynamics Land Systems (USA).

The Stryker sale was one of several approved under the US-India COMPACT initiative (Catalyzing Opportunities for Military Partnership, Accelerated Commerce and Technology).

Static linkage: Defence technology, international relations.

GS area: Geography (river systems)

The Teesta River was in the news over India-Bangladesh water-sharing discussions:

• Origin: Tso Lhamo Lake in Sikkim.
• Course: Flows through Sikkim and West Bengal.
• Confluence: Merges with the Brahmaputra in Bangladesh.
• Significance: A key tributary of the Brahmaputra system in eastern India. Bangladesh depends on Teesta flows for irrigation in its northwestern districts during the dry season.

The Teesta Water Sharing Treaty was initiated but has remained unsigned since 2011 due to West Bengal's objections.

Static linkage: Indian rivers and geography, India-Bangladesh relations.

• Fort William, Kolkata: Renamed Vijay Durg. Originally built by the British East India Company; the current structure was rebuilt between 1758 and 1781 after the Battle of Plassey.
• Donkey route: A term for illegal immigration via circuitous multi-country routes using forged documents. Delhi police reported a 100 per cent surge in arrests of facilitating agents in 2024.
• SARAT Version 2: Ministry of Earth Sciences tool developed by INCOIS (Indian National Centre for Ocean Information Services) for search-and-rescue operations in the Indian Ocean. It visualises drift trajectories and search areas.