Daily News Analysis Report – March 4, 2025

Cities Coalition for Circularity (C-3) Launched

India has launched the Cities Coalition for Circularity (C-3), a multi-nation alliance designed to promote sustainable urban development by integrating circular economy principles. The coalition was announced during the 12th Regional 3R and Circular Economy Forum in Asia and the Pacific, held in Jaipur. The initiative aims to foster city-to-city collaboration, knowledge-sharing, and private sector partnerships to enhance waste management, resource efficiency, and sustainable infrastructure. The coalition aligns with India’s Pro-Planet People (P3) approach and the 3R (Reduce, Reuse, Recycle) framework. Several Indian initiatives, such as the Swachh Bharat Mission, Smart Cities Mission, and Extended Producer Responsibility (EPR), have already laid the groundwork for circular economy practices. However, challenges such as high initial investment costs, lack of technical expertise, and insufficient policy enforcement need to be addressed to make the initiative successful.

Capital Account Convertibility in India

The Chairman of the 16th Finance Commission, Arvind Panagariya, recently cautioned against rushing into full capital account convertibility. Capital account convertibility allows for unrestricted foreign exchange transactions related to investment and asset transfers. While India currently follows a partial convertibility model, full convertibility could attract greater foreign investment and improve credit ratings. However, risks such as macroeconomic instability, exposure to global financial crises, and capital flight remain concerns. The Tarapore Committee recommended that India achieve fiscal consolidation, strengthen banking reforms, and maintain adequate foreign reserves before considering full convertibility. The debate highlights the need for a balanced approach to financial liberalization.

Poverty Estimation in India

A recent study by economists Surjit S. Bhalla and Karan Bhasin indicates that India has made significant progress in poverty reduction, with the poverty rate at the $3.65 PPP line dropping from 52% in 2011-12 to 15.1% in 2023-24. Extreme poverty at the $1.90 PPP line is now below 1%. The study also highlights a decline in inequality, with the Gini coefficient dropping from 37.5 to 29.1 over the same period. The findings challenge traditional poverty estimation methods, such as those used by the Tendulkar and Rangarajan Committees, which rely on outdated thresholds. Experts suggest revising poverty benchmarks to reflect modern economic conditions and incorporating regional cost-of-living variations. The need for updated poverty metrics is essential for formulating effective welfare policies.

IRCTC & IRFC Granted Navratna Status

The Indian Railway Catering and Tourism Corporation (IRCTC) and the Indian Railway Finance Corporation (IRFC) have been granted Navratna status, making them the 25th and 26th Navratna CPSEs (Central Public Sector Enterprises) in India. Navratna status provides greater financial autonomy and operational flexibility, allowing these companies to invest up to ₹1,000 crore without government approval. IRCTC, established in 1999, manages ticketing, catering, and tourism services for Indian Railways, while IRFC serves as the dedicated financing arm of the railways. The new status will enhance their market credibility and strategic decision-making abilities.

Taxation of Virtual Digital Assets in India

India’s Income Tax Bill, 2025, introduces a comprehensive legal framework for taxing Virtual Digital Assets (VDAs), aligning with global standards. VDAs, including cryptocurrencies and NFTs, were defined in the Finance Act, 2022. The Supreme Court, in the Internet and Mobile Association of India v. RBI case, classified VDAs as property, subjecting them to capital gains taxation. A flat 30% tax rate applies to VDA income, with a 1% TDS (Tax Deducted at Source) on transfers. While these measures increase transparency and deter tax evasion, concerns remain about the high tax burden on crypto traders. A balanced regulatory framework is needed to foster innovation while maintaining financial security.

Bose Metal Discovery

Researchers from China and Japan have identified niobium diselenide (NbSe2) as a potential Bose metal, a new state of matter that exhibits high conductivity without superconductivity. Bose metals form Cooper pairs of electrons but do not achieve long-range superconducting coherence. The discovery has implications for quantum computing, condensed matter physics, and next-generation electronics. Although still in the experimental phase, Bose metals could lead to advancements in high-temperature superconductors and energy-efficient electronic devices.

Additional Key Developments

India has secured a 9,000-sq-km copper exploration block in Zambia to bolster its critical mineral supply. The Ministry of Skill Development and Entrepreneurship, in collaboration with NITI Aayog, launched the Swavalambini Women Entrepreneurship Programme to support female entrepreneurs in higher education institutions. The Supreme Court reaffirmed the Doctrine of Equality, ruling that visually challenged candidates cannot be deemed unsuitable for judicial service. The U.S. government announced the creation of a Crypto Strategic Reserve to integrate digital assets into financial infrastructure. A NASA and ESA study suggests that Mars’ red color originates from ferrihydrite, indicating past liquid water activity. The Prime Minister chaired the 7th meeting of the National Board for Wildlife, during which the first comprehensive estimate of river dolphins in India was released, recording 6,327 individuals. Lastly, the 97th Academy Awards recognized major cinematic achievements, with Anora winning Best Picture and Sean Baker receiving the Best Director award.

India’s growing engagement with the global economy, financial reforms, technological advancements, and wildlife conservation efforts reflect its commitment to sustainable and inclusive development. Strategic interventions in these areas will be crucial for maintaining long-term economic resilience and scientific leadership.