16 July 2025 Current Affairs (With PDF)

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PMKVY Marks 10 Years, Advances into Fourth Phase

Overview:

1. The Ministry of Skill Development and Entrepreneurship (MSDE) first rolled out the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) in 2015 with the goal of expanding skill development opportunities across India.

2. Currently in its fourth edition - PMKVY 4.0 - the scheme now functions as a major pillar under the Central Sector Skill India Programme, along with two significant companion initiatives:

• Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS), which helps cover stipends for apprenticeships.
• Jan Shikshan Sansthan (JSS), designed to deliver vocational training to adults who are non-literate, newly literate, or school dropouts.

Types of Training Provided:

• Short-Term Training (STT): Courses aligned with the National Skills Qualification Framework (NSQF), including on-the-job learning.
• Recognition of Prior Learning (RPL): Formal certification for skills workers already possess.
• Special Projects: Tailored training for marginalized communities, challenging geographies, or specialized and upcoming job roles.

Notable Milestones & Impact:

• Since its inception, over 1.63 crore young people have benefitted from training under PMKVY.
• It has delivered targeted skilling to unique groups such as the Bru tribe in Tripura, prison inmates in Assam and Manipur, and supported 70% women under the PANKH project.
• The scheme has significantly boosted social inclusion, with 45% of trainees being women, and strong participation from SC, ST, and OBC communities.
• PMKVY has evolved to prepare India’s workforce for the future, introducing skills training in areas like Artificial Intelligence, Internet of Things (IoT), Robotics, 5G, Cybersecurity, Drones, and Green Hydrogen.
• It has also invested in preserving traditional crafts, providing skill upgradation support for artisans and weavers in states like Nagaland and Jammu & Kashmir.

New Report Highlights India’s Advantage Under Current US Tariffs

A recent report delivers an in-depth look at how the present US tariff structure could play in India’s favour and outlines practical steps to help the country strengthen its export performance.

Impact of Current US Tariff Scenario:

• Potential to Capture Market Share: India is well-placed to expand its footprint in the US market, with the possibility of gaining ground in over 60% of its export value to America.
• Edge Over Major Competitors: Thanks to comparative tariff benefits, India stands to outperform countries like China, Mexico, and Canada in important product categories — such as nuclear reactors, steel and iron products, textiles, electrical machinery, and vehicles.
• Minor Drawbacks: The average areas where India faces a slight tariff disadvantage are limited, with a gap of roughly 1% on select products.
• Growth Sectors: Key opportunities lie in both high-value segments (like electronics and nuclear components) and labour-intensive exports (like clothing and textiles).

Policy Recommendations to Enhance Trade Performance:

1. Steps to Boost Goods Exports:

• Increase Export Competitiveness: Broaden the Production Linked Incentive (PLI) scheme to cover more labour-heavy sectors and make electricity pricing more rational by cutting unnecessary cross-subsidies.
• Streamline Trade Procedures: Upgrade the Authorised Economic Operator (AEO) programme to make customs clearance faster for trusted businesses and launch targeted initiatives under an expanded Export Promotion Mission.
• Expand Trade Partnerships: Integrate more deeply into global supply networks by pushing ahead with deals like the India–EU Free Trade Agreement and the Jan Vishwas 2.0 reforms.

2. Measures to Promote Services Exports:

• Negotiate Tailored Trade Deals: Push for service-centric free trade agreements, following the model of the India–UK negotiations.
• Strengthen Recognition Agreements: Sign more Mutual Recognition Agreements (MRAs) so that Indian professionals gain easier access to work opportunities abroad.
• Cut Red Tape: Tackle hurdles such as complicated licensing, patchy data standards, and intellectual property issues that often hamper service exports.
• Invest in Skills and Technology: Step up investments in reskilling and advanced technologies, especially in promising areas like digital health, financial technology, cloud computing, and education technology.

Finance Minister Calls for Accelerated Growth of Global Capability Centres

India’s Finance Minister has called on the government and private sector to work hand-in-hand to ramp up the establishment of Global Capability Centres (GCCs), aiming to attract more Fortune 500 companies that have yet to set up operations in the country. Notably, India added about one new GCC every week during 2024 - a trend the government hopes to speed up even further.

What Are GCCs?

Also known as Global In-House Centres (GICs) or captives, these are offshore branches set up by multinational corporations to deliver a variety of services — including IT support, research and development (R&D), and customer service — directly for their parent company. They operate as an internal arm of the parent corporation rather than as outsourced vendors.

Why India Is a Top Hub:

India remains a top destination for GCCs due to:

• Competitive costs and high cost-effectiveness.
• Robust digital infrastructure and supportive policies under programmes like Digital India and Smart Cities Mission.
• A vast pool of skilled, English-speaking talent.
• A large domestic market that adds further incentive for global companies to invest.

Key Hurdles:

Despite the positive factors, some challenges remain:

• Shortage of skilled professionals in smaller cities (Tier II and III).
• Gaps in infrastructure, both digital and physical.
• Complex regulations that can deter companies from expanding faster.
• Cybersecurity risks that come with managing sensitive corporate operations offshore.

Way Forward - Strategic Actions Needed:

• Adopt Emerging Technologies: Wider use of AI, cloud computing, automation, and similar innovations will help GCCs stay ahead globally.
• Tackle Global Uncertainty: Companies must embrace agile governance models to handle shifting geopolitical dynamics and related regulatory challenges.
• Strengthen Workforce Readiness: There’s a growing need to reskill employees, promote new-age digital skills, and enable hybrid work models to attract and retain top talent nationwide.

India Surpasses 50% Non-Fossil Fuel Power Goal Ahead of Schedule

According to the Ministry of New and Renewable Energy, India’s total installed electricity capacity now stands at 484.82 gigawatts (GW), with just over 50% of that coming from non-fossil fuel sources — a milestone reached five years ahead of the target India pledged under its Nationally Determined Contributions (NDCs) to the Paris Agreement.

Major Drivers of India’s Renewable Energy Surge:

• PM Surya Ghar Yojana: Enabled about 7 lakh households to set up rooftop solar panels, cutting electricity bills and boosting clean power.
• PM-KUSUM Scheme: Helped farmers run water pumps on solar energy, reducing reliance on diesel and providing energy security in agriculture.
• Domestic Manufacturing Push: Expanded local production of solar photovoltaic panels and wind turbines under Production Linked Incentive (PLI) Schemes.
• Better Transmission Networks: Heavy investment in inter-state transmission systems to carry green power from states rich in renewable resources to other parts of the country.
• Green Energy Open Access Rules (2022): Gave consumers - especially industries - more freedom to buy renewable power directly.
• Open FDI Policy: Allows 100% foreign direct investment automatically in the renewable sector, boosting global partnerships and capital flow.
• Viability Gap Funding (VGF): A dedicated funding scheme to support offshore wind energy projects, making them commercially viable.

Why This Achievement Matters:

• Global Climate Leadership: India demonstrates that a major developing economy can aggressively shift to clean energy without sacrificing growth.
• Energy Independence: Less reliance on imported fossil fuels protects India from global oil and gas price swings.
• Balanced Energy Mix: A wider mix of energy sources - solar, wind, hydro - strengthens the resilience of India’s energy grid.
• Massive Job Creation: The renewable push is generating jobs in manufacturing, installation, maintenance, and new green industries, adding to industrial growth.

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Consumer Price Index (CPI): Key Facts

According to data released by the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation (MoSPI), the Consumer Price Index (CPI) is India’s main tool for tracking household inflation.

What is CPI?

• The CPI tracks how the average prices of goods and services consumed by households change over time.
• It acts as a major macroeconomic measure of inflation.
• Used by the government and the Reserve Bank of India (RBI) for inflation targeting and to maintain price stability.
• Plays a role in calculating real GDP figures as a deflator in national accounts.
• It’s also used to adjust dearness allowances for government employees and pensioners.
• The base year for India’s CPI was last updated to 2012.

National Pharmaceutical Pricing Authority (NPPA)

The central government has recently capped the prices of 71 important drug formulations through the National Pharmaceutical Pricing Authority (NPPA).

What is NPPA?

• Set up in 1997, the NPPA functions as an independent regulator under the Department of Pharmaceuticals (DoP) in the Ministry of Chemicals and Fertilizers.
• Its core job is to fix and revise prices for essential medicines under the Drugs Prices Control Order (DPCO).
• The NPPA ensures that vital medicines are affordable and widely available to the public.

India’s Fight Against Counterfeit Goods

The German footwear company Birkenstock has filed a case in the Delhi High Court against traders in Delhi and Agra for allegedly selling fake versions of its popular sandals.

Counterfeit Market Snapshot:

• The OECD’s 2022 report named India as a major source of counterfeit goods globally, along with China, Turkey, and the UAE.
• A CRISIL study in 2022 estimated that fake products make up 25–30% of India’s total retail market.
• India’s Trademarks Act, 1999 and Designs Act, 2000 allow brand owners to take legal steps, secure court orders, and get fake stock seized.

Next-Gen Shinkansen to Debut in India

India’s ambitious Mumbai-Ahmedabad High-Speed Rail Project will soon see the introduction of Japan’s E10 Shinkansen trains, the same new model set to roll out in Japan itself.

About Shinkansen Technology:

1. The Shinkansen is Japan’s famous high-speed bullet train, known globally for its safety, speed, and punctuality.

2. Uses a Crash Avoidance system:

• Runs on dedicated tracks with no level crossings, ensuring no interference from other traffic.
• Equipped with an Automatic Train Control (ATC) System, which automatically manages train speed to prevent collisions.

3. Built with aerodynamic front design to cut air resistance, reduce noise, and boost energy efficiency - ensuring a smoother ride for passengers.

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