23rd JANUARY, 2025 A.) Sukanya Samriddhi Yojana WHY IN NEWS - As of November 2024, over 4.1 crore Sukanya Samriddhi accounts have been opened under the Beti Bachao, Beti Padhao campaign, providing financial security and social empowerment to girls across India. Background The Sukanya Samriddhi Yojana (SSY) was launched in January 2015 as part of the Government of India's Beti Bachao, Beti Padhao campaign. The scheme aims to promote savings for the education and marriage expenses of girl children. Details • About the Scheme: o A small deposit scheme exclusively for a girl child to address her education and marriage expenses. o Managed by the Union Ministry of Finance. • Eligibility Criteria: o Account can be opened in the name of a girl child until she attains 10 years of age. o Available in post offices or commercial banks. o Only one account per girl child. o Maximum of two accounts can be opened for two children in a family. • Deposit Rules: o Minimum Deposit: ₹250/year. o Maximum Deposit: ₹1.5 lakh/year. • Account Management: o Managed by a guardian until the girl child reaches 18 years. • Interest Rate: o Currently set at 8.2% per annum. • Withdrawal and Maturity: o 50% withdrawal is allowed for higher education after the child turns 18. o Premature closure permitted in case of marriage after the girl turns 18. o The account matures after 21 years from the date of opening. • Achievements: o In several villages, all eligible girls up to the age of 10 have opened Sukanya Samriddhi accounts. o Some communities have been designated as Complete Sukanya Samriddhi Grams due to 100% coverage. This initiative exemplifies the government's efforts toward gender equality and empowerment of the girl child by ensuring their financial and social security.   B.) Parakram Diwas WHY IN NEWS - January 23, 2025, marks the 128th birth anniversary of Netaji Subhas Chandra Bose, observed as Parakram Diwas or the Day of Valour since 2021 to honor his contributions to India’s freedom struggle. Background The government initiated Parakram Diwas to inspire citizens, particularly youth, to emulate Netaji’s courage and fortitude during adversity and foster a sense of patriotism. Details • Early Life and Education: o Born in 1897 in Cuttack to an upper-class Bengali family. o Studied at Presidency College and Scottish Church College in Kolkata. o Cleared the Indian Civil Services (ICS) exam in 1920 but resigned in 1921, prioritizing India’s freedom struggle. • Political Journey: o Elected Congress President in 1938 at the Haripura session; advocated for swaraj as a "National Demand" and opposed British plans for an Indian federation. o Re-elected in 1939, defeating Gandhi-backed candidate Dr. Pattabhi Sitaramayya, but resigned after internal conflicts. o Formed the Forward Bloc within Congress to unite radical-left elements. • Gandhi and Bose: o Diverged ideologically; Gandhi emphasized non-violence and decentralization, while Bose advocated immediate action, modern technology, and a strong central government. o Despite differences, Bose respected Gandhi and first called him the “Father of the Nation” during a radio address in 1944. • Role in INA: o The Indian National Army (INA) was formed in 1942, consisting of Indian PoWs captured by the Japanese. o Bose took charge of the INA in July 1943 and launched the Delhi Chalo campaign to liberate India. o The INA marched to the Indo-Burma border, advancing to Imphal and Kohima in 1944 before retreating. o After World War II ended in 1945, Bose died in a plane crash under mysterious circumstances. Netaji’s legacy as a courageous and visionary leader continues to inspire generations, and Parakram Diwas commemorates his indomitable spirit and contributions to India’s freedom struggle.   C.) National Health Mission (NHM) WHY IN NEWS - Launched in 2013, the National Health Mission (NHM) integrates the National Rural Health Mission (NRHM) and National Urban Health Mission (NUHM), working toward achieving universal health coverage. Background The NHM aims to ensure equitable, affordable, and quality healthcare services that are accountable and responsive to people’s needs. Details • Objectives: o Provide universal access to healthcare. o Improve health outcomes and reduce health inequalities. • Components and Key Initiatives: 1. Reproductive, Maternal, Newborn, Child, and Adolescent Health (RMNCH+A):  Includes Janani Suraksha Yojana (JSY) and Janani Shishu Suraksha Karyakram (JSSK) for maternal and child health. 2. Communicable Diseases Control:  Focus on TB, malaria, leprosy, and HIV/AIDS under programs like National Vector-Borne Disease Control Programme (NVBDCP) and Revised National Tuberculosis Control Programme (RNTCP). 3. Non-Communicable Diseases (NCDs):  Screening and management of diabetes, hypertension, and cancer under the National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases, and Stroke (NPCDCS). 4. Other Areas:  Urban Health, Health System Strengthening, and the Accredited Social Health Activist (ASHA) Programme. • Implementation: o Managed by State Governments with financial and technical support from the Central Government. • Funding: o Fund sharing ratio is 60:40 between the Central and State Governments. o For Northeastern states, including Sikkim, the ratio is 90:10. • Key Achievements: o Maternal Mortality Ratio (MMR): Declined by 83% since 1990, standing at 97 per lakh (2018-20), surpassing the global decline of 45%. o Under-5 Mortality Rate (U5MR): Reduced by 75% since 1990, now at 32 per 1000 (2020), compared to the global reduction of 60%. o Disease Elimination:  Achieved targets for Kala Azar elimination.  97.98% coverage in the Measles-Rubella Vaccination Campaign. The NHM serves as a comprehensive platform to improve health indicators across India by focusing on both communicable and non-communicable diseases and strengthening healthcare systems.   D.) Revocation of Birthright Citizenship in the US WHY IN NEWS - US President Donald Trump, starting his second term, has issued an executive order to revoke birthright citizenship, a move impacting children born in the US to non-citizen parents. Background The Indian-American community, one of the fastest-growing immigrant populations in the US, will be significantly affected if this policy comes into effect. Details • What is Birthright Citizenship? o Established in 1868, birthright citizenship grants automatic US citizenship to anyone born on American soil, irrespective of the parents' citizenship or immigration status. • Key Changes Proposed: o Denial of US citizenship to children born in the US if at least one parent is not an American citizen. o Effective 30 days after issuance of the executive order. • Implications for the Indian Community: 1. Children of Indian Nationals:  Children born to Indian parents on temporary work visas (e.g., H-1B) or those waiting for Green Cards will no longer qualify for automatic US citizenship.  Indian students on non-immigrant visas will also face challenges in securing citizenship for their children. 2. Discouraging Indian Professionals & Students:  Could deter Indian professionals and students from choosing the US, with many preferring immigration-friendly nations like Canada or Australia. 3. Economic Impact:  The Indian-American community contributes significantly to the tech industry, healthcare, and education in the US. This policy could have long-term repercussions for these sectors. 4. Family Reunification:  US-born children would lose the right to petition for their parents to immigrate to the US upon turning 21 if denied citizenship. • Impact on “Birth Tourism”: o The policy aims to curb "birth tourism," where individuals from countries like India and Mexico travel to the US specifically to give birth, allowing their children to claim US citizenship. The revocation of birthright citizenship could have far-reaching implications on immigrant communities, particularly the Indian diaspora, and may alter the global perception of the US as a destination for opportunities and inclusive immigration policies.   E.) State of India’s Digital Economy Report 2024 WHY IN NEWS The Ministry of Electronics & Information Technology (MeitY) has released the "State of India’s Digital Economy Report 2024," making India the first developing country to employ the Organization for Economic Cooperation and Development (OECD) framework for assessing the size of its digital economy. Key Highlights 1. Scope of the Report: o Expands beyond the OECD framework to include the digital share of traditional industries like trade, BFSI, and education. 2. Key Findings: o Digital Economy Contribution:  Contributed 11.74% to the national income in 2022-23.  Expected to grow to 13.42% by 2024-25. o Global Position:  India is the third-largest digitalized country globally. o Sectoral Contributions:  Digitally Enabling Industries: Major contributor at 7.83% of GVA, including ICT services and telecommunications.  New Digital Industries: Includes big tech firms and digital platforms.  Digitalization of Traditional Sectors: Contributed an additional 2% to the national GVA. o Employment:  In 2022-23, provided jobs to 14.67 million workers, constituting 2.55% of the workforce. o Projected Growth:  By 2029-30, the digital economy is anticipated to contribute one-fifth of India's national income, surpassing agriculture and manufacturing. 3. Key Recommendations: o Universal Broadband Access:  Focus on ensuring high-quality broadband access for all. o Data Collection Improvements:  Address existing data gaps by harmonizing and collecting new data. Significance • Economic Growth: o The report highlights the digital economy as a major driver of growth, expected to play a pivotal role in India's transition to a developed economy. • Employment Creation: o Significant potential for generating jobs, particularly in ICT and emerging technologies. • Global Leadership: o Demonstrates India's digital leadership among developing countries, setting an example for others to follow. This report underlines the central role of the digital economy in India's growth story, emphasizing the need for sustained efforts to expand access, enhance infrastructure, and refine data collection for effective policy implementation.   F.) Updates on the Principal Purpose Test (PPT) under Double Taxation Avoidance Agreements (DTAAs) WHY IN NEWS – The Central Board of Direct Taxes (CBDT) has issued updated guidance for applying the Principal Purpose Test (PPT) under India's Double Taxation Avoidance Agreements (DTAAs) to curb revenue leakages. Key Highlights 1. Principal Purpose Test (PPT): o PPT is a key provision under the Multilateral Convention to Implement Tax Treaty-Related Provisions (part of the BEPS framework) to prevent Base Erosion and Profit Shifting (BEPS). o The test determines whether a business arrangement is genuinely commercial or created mainly to avoid taxes. o PPT has been applicable in India since October 1, 2019, after the Multilateral Instrument (MLI) came into force. 2. New Guidance: o Exemptions for Specific DTAAs:  Certain provisions under the India-Cyprus DTAA, India-Mauritius DTAA, and India-Singapore DTAA have been exempted. o Alignment with BEPS and UN Model Tax Convention:  Tax authorities are encouraged to refer to BEPS Action Plan 6 and the UN Model Tax Convention for supplementary guidance. 3. BEPS Action Plan 6: o Aims to address treaty shopping, where investors exploit tax treaties by routing investments through countries with favorable tax agreements. o Introduces treaty provisions to combat abuse, ensuring that tax treaties are used for genuine cross-border investments. 4. Key Objectives of PPT: o Prevent misuse of tax treaties by identifying business arrangements primarily aimed at tax avoidance. o Support genuine commercial activities that align with the spirit of international tax agreements. Understanding Double Taxation Avoidance Agreements (DTAAs) 1. Definition: o Bilateral treaties that aim to prevent double taxation of the same income in two different countries. 2. Objectives: o Tax Burden Mitigation: Reduce the tax burden on taxpayers. o Promote Trade and Investment: Foster cross-border trade and economic cooperation by providing clarity on taxing rights. 3. Key Provisions: o Allocation of Taxing Rights: Defines how tax revenues are shared between countries. o Prescribed Tax Rates: Specifies applicable tax rates on income like dividends, royalties, and capital gains. o Exchange of Tax-Related Information: Ensures transparency and prevents tax evasion. Significance of Updates • Combat Revenue Leakages: Strengthens measures to prevent tax avoidance, ensuring fairness in taxation. • Encourage Compliance: The guidance aligns with global frameworks, promoting consistent application of tax treaties. • Boost Investment Confidence: By preventing misuse, the updates enhance the credibility of India's tax treaties, fostering genuine investments. This updated guidance underscores India's commitment to maintaining a fair and transparent tax system in line with global best practices.