1. One Nation One Subscription (ONOS): Revolutionizing India’s Research Landscape

Context: The One Nation One Subscription (ONOS) initiative is a groundbreaking effort designed to democratize access to global academic and research materials in India. It aligns with the aspirations of NEP 2020 and the vision of Viksit Bharat@2047, aiming to transform the country’s research ecosystem.

Key Features of ONOS:

Centralized Implementation:

• Role of INFLIBNET: The Information and Library Network Centre under UGC will act as the nodal agency, managing subscriptions and ensuring seamless access to digital resources through a centralized platform.
• Funding: The initiative has been allocated a ₹6,000 crore budget for its first phase (2025–2027), aimed at building infrastructure and streamlining access.

Phase I (2025–2027):

• Establishing a robust framework to provide access to a wide range of research materials.
• Negotiating Article Processing Charges (APCs) to make publishing more affordable for Indian researchers.

Advantages of ONOS:

Equitable Knowledge Access:

• ONOS bridges the urban-rural divide, enabling researchers in tier-2 and tier-3 cities to access top-tier international journals, which were previously inaccessible due to cost barriers.

Enhancing Research Quality:

• Access to high-impact journals will enable Indian researchers to produce globally competitive research, boosting innovation in areas like STEM, medicine, and social sciences.

Cost Savings:

• Centralized funding eliminates duplicate subscriptions, reducing costs for Higher Education Institutions (HEIs) and research centers.
• Discounts on APCs make publishing in prestigious journals more accessible.

Fostering Collaboration:

• ONOS promotes interdisciplinary and international research collaborations, enhancing India’s visibility on the global academic stage.

National Development Goals:

• The initiative supports India’s R&D ecosystem, driving innovation in critical sectors and contributing to economic growth and self-reliance.

Improved Academic Infrastructure:

• ONOS complements programs like the Anusandhan National Research Foundation (ANRF), building a robust academic framework to support cutting-edge research.

Challenges in Implementation:

Administrative and Logistical Hurdles:

• Coordinating access for over 6,300 institutions with varied needs will require efficient administration and management.

Digital Divide:

• Infrastructure gaps, including unreliable internet connectivity and limited digital literacy in remote areas, could hinder effective utilization.

Limited Resource Scope:

• The initial phase may not cover all necessary journals, leaving some researchers without access to their required materials.

Sustainability Concerns:

• Ensuring long-term funding without compromising resource quality could pose a challenge.

Monitoring Impact:

• Measuring the real impact of ONOS on research output, global rankings, and innovation requires comprehensive evaluation mechanisms.

Over-Reliance on Global Publishers:

• Dependency on foreign publishers could limit India’s bargaining power, leading to potential cost escalations.

The Road Ahead:

1. Strengthening Infrastructure: Enhance digital connectivity in remote areas and provide training programs to improve digital literacy among researchers and students.
2. Phase-Wise Expansion: Gradually broaden ONOS to include more journals, databases, and resources in regional languages for inclusive growth.
3. Promoting Open Access:Encourage researchers to utilize Open Access (OA) platforms and build national repositories to freely share research outputs.

Improving Negotiation Power:

• Collaborate with other countries to secure better terms with publishers, such as reduced subscription costs and lower APCs.

Impact Metrics:

• Develop tools to assess the impact of ONOS on research quality, academic output, and global R&D rankings.

Empowering Regional Institutions:

• Allocate additional resources to smaller institutions, enabling them to fully leverage ONOS benefits.

Awareness and Training:

• Launch public awareness campaigns and organize workshops to educate researchers, faculty, and students on maximizing ONOS’s potential.

Conclusion: The One Nation One Subscription initiative is a transformative step toward creating an inclusive and robust research ecosystem in India. By addressing challenges, leveraging technology, and fostering collaboration, ONOS has the potential to position India as a global leader in innovation and academic excellence.

2. Quad Reaffirms Commitment to a Free and Stable Indo-Pacific

Context: In a joint statement commemorating two decades of cooperation, the Quad nations—India, the U.S., Australia, and Japan—renewed their dedication to ensuring a free, open, and stable Indo-Pacific region. This milestone reflects the strategic importance of collaboration among these democracies in addressing regional challenges.

Key Highlights of the Joint Statement:

Support for ASEAN Unity and Centrality:

• The Quad underscored its unwavering support for the Association of Southeast Asian Nations (ASEAN), recognizing its pivotal role in the region’s security and development.
• Members endorsed the ASEAN Outlook on the Indo-Pacific (AOIP) as a guiding framework for fostering cooperation and addressing shared challenges.

Focus on Humanitarian Assistance and Disaster Relief (HADR):

• The Quad emphasized its efforts in disaster preparedness and providing rapid, life-saving aid in times of crises.
• Continued support in 2024 highlights the group’s proactive approach in building resilience across the Indo-Pacific.

What is the Quadrilateral Security Dialogue (Quad)?

• Informal Alliance: A strategic grouping of India, the U.S., Australia, and Japan, aimed at maintaining peace and promoting shared values in the Indo-Pacific region.
• Origin: Initially formed after the 2004 Indian Ocean tsunami to coordinate disaster relief efforts.
• Resurgence: After being formalized in 2007 by Japan’s former PM Shinzo Abe, the alliance became dormant and was revived in 2017 to counterbalance growing regional challenges, particularly China’s influence.

Strategic Importance of the Quad:

Act East Policy and Maritime Security:

• For India, the Quad reinforces its Act East policy, emphasizing deeper connections with East Asian nations.
• It strengthens maritime security cooperation, ensuring the safety of key trade routes and adherence to international laws.

Counterbalancing Regional Hegemony:

• The Quad is a critical mechanism for addressing China’s assertive actions in the region, safeguarding freedom of navigation, and promoting the rule-based international order.

Geopolitical and Economic Impact:

• Enhanced military collaboration, intelligence sharing, and joint exercises provide a robust framework for regional stability.
• The grouping supports India’s ambition to be a regional superpower, contributing to a multipolar world.

Challenges Confronting the Quad:

Divergent Priorities:

• Each member nation has distinct geopolitical interests, leading to potential differences in focus areas such as military, trade, and climate policies.

Perceived Anti-China Bias:

• The Quad is often seen as an anti-China coalition, complicating relations with nations in the Indo-Pacific that rely heavily on economic ties with China.

Structural Limitations:

• The absence of a formal structure or secretariat limits long-term planning and the execution of initiatives.

Regional Concerns:

• ASEAN nations have expressed apprehensions about the Quad overshadowing their central role in Indo-Pacific security.

Way Forward:

Strengthening Collaboration:

• With India set to host the Quad Summit in 2025, the group must leverage this opportunity to reinforce its vision of an inclusive Indo-Pacific through clear, transparent objectives.

Addressing Perception Challenges:

• Transparent communication is essential to dispel concerns regarding the Quad’s anti-China image and encourage broader regional participation.

Expanding Focus Areas:

• Collaboration on emerging technologies, green infrastructure, and climate resilience can diversify the Quad’s agenda, showcasing its relevance to a wider audience.

Enhancing Regional Partnerships:

• Deepening ties with ASEAN and other Indo-Pacific nations can ensure a balanced approach that respects the centrality of regional players.

Additional Insights:

Impact of Quad Initiatives:

• The Quad has already demonstrated its potential through joint projects, including vaccine distribution under the Quad Vaccine Partnership, technology sharing, and security dialogues.
• Future focus on supply chain diversification, particularly in critical sectors like semiconductors and rare earth minerals, could reduce dependency on single sources and boost economic security in the region.

Role in Global Governance:

• By championing democratic values, transparency, and sustainable development, the Quad can serve as a model for addressing global challenges, from cybersecurity to climate change.

The Quad’s renewed pledge for a free and stable Indo-Pacific is not just a geopolitical strategy but a commitment to fostering a region built on collaboration, inclusivity, and shared prosperity.

3. RBI’s Financial Stability Report Highlights Rising NPAs and Global Risks

Context: The Reserve Bank of India (RBI) recently published its Financial Stability Report (FSR) for December 2024. Released bi-annually on behalf of the Financial Stability and Development Council (FSDC), the FSR evaluates key trends and risks in the Indian and global financial systems.

Key Takeaways from the Financial Stability Report:

Stress Tests Showcase System Resilience:

• Stress tests conducted by the RBI confirm that Scheduled Commercial Banks (SCBs) are equipped with sufficient capital buffers to endure adverse scenarios.
• Resilience is also validated across mutual funds, clearing corporations, and Non-Banking Financial Companies (NBFCs).

Improved Government Finance:

• The central government’s debt-to-GDP ratio is projected to decline from 62.7% in 2020-21 to 56.8% by 2024-25.
• Similarly, states’ outstanding liabilities are expected to reduce from 31% to 28.8% in the same period, reflecting improved fiscal discipline.

Economic Growth Projections:

• The Indian economy is anticipated to grow by 6.6% in FY25, supported by:
  • Revival in rural consumption.
  • Increased government spending.
  • Robust services exports.

Concerns Over Rising NPAs:

• The report foresees a potential increase in Gross Non-Performing Assets (GNPA) from 2.6% in September 2024 to 3% by March 2026 under baseline stress scenarios.
• Specific focus is required for sectors like microfinance and consumer credit, which demand vigilant monitoring.

Domestic Financial Stability Remains Robust:

• Despite global uncertainties, the Indian financial system showcases resilience, with SCBs maintaining:
  • Decadal highs in Return on Assets (RoA) and Return on Equity (RoE).
  • Strong profitability and adequate capital and liquidity buffers.

Insurance Sector Stability:

• The insurance sector continues to exhibit a healthy solvency ratio, indicating financial stability.

Key Concerns Highlighted in the FSR:

High Public Debt:

• Although public debt is expected to decline post-pandemic, it remains a significant concern for long-term fiscal sustainability.

Global Economic Vulnerabilities:

• Risks stemming from stretched asset valuations, high public debt, geopolitical tensions, and emerging technological challenges could threaten global financial stability.

Geopolitical Conflicts:

• Prolonged geopolitical issues may disrupt global supply chains, escalate commodity prices, and increase financial market volatility, posing challenges to the Indian economy.

Emerging Technological Risks:

• Cybersecurity threats, data privacy issues, and the potential for technological disruptions in financial services call for robust regulatory measures.

Climate Change Impact:

• Extreme weather events and the global transition to a low-carbon economy pose risks to financial institutions and the broader economy, requiring strategic mitigation efforts.

Financial Stability and Development Council (FSDC):

Overview:

• Established: 2010 as a non-statutory apex body.
• Objective: To maintain financial stability and promote the development of the financial sector.

Key Members:

• Chairperson: Union Finance Minister.
• Members include heads of financial sector regulators (RBI, SEBI, PFRDA, IRDA), the Finance Secretary, and the Chief Economic Adviser.

Functions:

• Monitor Systemic Risks: Identifies and mitigates risks in the financial sector.
• Promote Coordination: Facilitates inter-agency collaboration among financial regulators.
• Crisis Management: Develops mechanisms to address financial crises effectively.
• Sector Efficiency: Enhances growth and operational efficiency of the financial sector.

Way Forward:

• Address Rising NPAs: Strengthen early warning systems and implement stricter monitoring of high-risk sectors like microfinance and consumer credit.
• Enhance Resilience: Focus on building robust frameworks for managing technological risks and climate-related vulnerabilities.
• Debt Management: Prioritize fiscal discipline to reduce public debt and ensure sustainable economic growth.
• Strengthen Cybersecurity: Develop advanced measures to mitigate cyber threats and enhance data privacy protections.
• Global Collaboration: Engage in international efforts to stabilize global financial systems amid geopolitical uncertainties.

The RBI’s FSR underlines India’s financial strengths while identifying areas that need careful monitoring. Proactive measures and a collaborative approach will be essential for maintaining long-term financial stability and fostering sustainable economic growth.

4. Government Extends DAP Subsidy to Stabilize Fertilizer Prices

Context: To ensure the availability of Di-Ammonium Phosphate (DAP) at affordable rates for farmers, the Union Cabinet has approved the extension of a special subsidy beyond the Nutrient-Based Subsidy (NBS) framework, effective from January 1, 2025.

5. Russia And Gas Transit to Ukraine Amid Conflict

Context: Russia has halted natural gas transit to Europe through Ukraine as their long-standing agreement expired. This shift forces Europe to strengthen its energy diversification strategy, benefiting nations like the United States, Norway, and Qatar, while impacting key European markets reliant on Russian gas.

Key Highlights:

Why in News?

As of New Year’s Day 2025, Russian gas exports through Soviet-era pipelines in Ukraine have stopped due to the expiration of a critical transit deal.

• Reason: No agreement was reached between Moscow and Kyiv amid escalating geopolitical tensions.
• Ukraine cited national security concerns for halting transit during the ongoing military conflict.

The Urengoy-Pomary-Uzhgorod Pipeline: A Snapshot:

• Purpose: This Soviet-era pipeline transported gas from Siberia to Europe via Ukraine.
• Route: It passes through Ukraine to Slovakia, branching into Austria and the Czech Republic.
• Local Supply: The pipeline also provided gas to Transdniestria, which borders Ukraine.

Decline in Russian Gas Supply via Ukraine:

Shrinking Market Share:

• Once controlling 35% of Europe’s gas market, Russia now holds just 8%.
• Russian gas supplied through Ukraine dropped from 65 bcm/year in 2020 to less than 14 bcm by December 2024.

Economic Losses:

• Ukraine loses $800 million–$1 billion annually in transit fees.
• Russia’s Gazprom stands to lose nearly $5 billion in 2024 gas sales.

Impact of the Transit Halt:

For Russia and Gazprom:

• Financial Losses: Reduced transit fees and declining export revenue.
• Market Erosion: Russia’s influence in Europe’s gas market continues to diminish.

For the European Union:

• Countries Affected:
  • Austria: Heavily dependent on Russian gas, now transitioning to alternative suppliers.
  • Slovakia: Imports around 3 bcm per year (two-thirds of its requirements) but claims diversification has mitigated the impact.
  • Moldova: Faces challenges but is diversifying its energy mix and reducing gas consumption.
• Market Adjustments:
  • EU gas prices, which hit record highs in 2022, are unlikely to spike again due to reduced reliance on Russian gas.
  • Increased imports of liquefied natural gas (LNG) and pipeline gas from Norway, the US, and Qatar.

Alternative Options for Buyers:

Shutting Down Other Pipelines:

• Yamal-Europe Pipeline: Closed via Belarus.
• Nord Stream Pipelines: Severely damaged in 2022.

Existing Alternatives:

• TurkStream Pipeline: Continues to supply gas to Turkey, Hungary, and Serbia.
• Diversified Routes:
  • Slovakia: Tapping into supplies from Hungary, Austria, and the Czech Republic.
  • Austria: Secured alternative agreements for a smooth transition.
  • Czech Republic: Utilizing German pipelines, which are exempt from gas levies, to assist Slovakia.
  • Moldova: Reducing gas consumption by one-third and exploring diversified energy sources.

Future Outlook:

The halt in Russian gas transit marks a significant shift in Europe’s energy dynamics. While the EU has reduced its reliance on Russian gas, challenges remain for nations transitioning to alternative supplies. The continued focus on LNG imports, renewable energy, and pipeline agreements with non-Russian partners highlights Europe’s commitment to energy security in an evolving geopolitical landscape.

6. PMFBY and RWBCIS Extended Until 2025-26 with 69,515 Crore Allocation

Context: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather-Based Crop Insurance Scheme (RWBCIS) until 2025-26. An enhanced allocation of 69,515 crore has been made to strengthen risk coverage for farmers and promote advanced technology in the agricultural sector.

Key Highlights:

Why in News?

The government has extended the PMFBY and RWBCIS with a significant boost in funding to ensure comprehensive risk coverage for crops and to mitigate financial losses for farmers caused by natural calamities.

Pradhan Mantri Fasal Bima Yojana (PMFBY):

What is PMFBY?

Launched in 2016, PMFBY is an insurance scheme under the Ministry of Agriculture & Farmers Welfare. It replaced earlier schemes like the National Agricultural Insurance Scheme (NAIS) and the Modified NAIS.

• Aligned with the theme “One Nation, One Scheme,” it incorporates the best features of previous insurance initiatives while addressing their shortcomings.

Objectives:

• Provide financial protection to farmers in case of crop failure due to natural calamities, pests, or diseases.
• Stabilize farmers’ income to ensure the continuity of farming activities.
• Encourage the adoption of modern agricultural practices.
• Ensure credit flow to the agricultural sector.

Key Features::

1. Affordable Premiums: Farmers pay 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial and horticultural crops.
2. Area-Based Implementation: The scheme operates on an area approach basis, with the village/village panchayat as the unit for major crops.
3. No Cap on Subsidy: The government bears the entire balance premium, even if it exceeds 90%.
4. Technological Integration:Use of smartphones for real-time crop data and remote sensing for yield estimation, reducing delays in claim settlements.
5. Beneficiary Coverage:
   • Covers all farmers growing notified crops in a notified area.
   • Made voluntary for all farmers from Kharif 2020.

Restructured Weather-Based Crop Insurance Scheme (RWBCIS):

What is RWBCIS?

Launched alongside PMFBY, RWBCIS safeguards farmers from financial losses due to adverse weather conditions like rainfall, temperature, wind, and humidity.

• Crops Covered: Food crops, oilseeds, and commercial/horticultural crops.
• Objective: Provide insurance for risks like drought, flood, cyclone, and hailstorm to minimize the financial impact of crop damage.
• Eligibility: Open to all farmers, including sharecroppers and tenant farmers, cultivating notified crops in designated areas.

69,515 Crore Boost for Crop Insurance:

Government Support:

The Union Cabinet approved an outlay of 69,515 crore for PMFBY and RWBCIS from 2021-22 to 2025-26, ensuring sustainable risk coverage for farmers.

Enhanced Risk Coverage and Innovation:

• FIAT (Fund for Innovation and Technology):
  • Allocated 824.77 crore to improve transparency and efficiency in claims settlement.

Technological Initiatives Under FIAT:

• YES-TECH (Yield Estimation System Using Technology):
  • Incorporates remote sensing technology for accurate yield estimation.
  • Currently active in 9 states, with plans to expand nationwide.
  • Madhya Pradesh has adopted a 100% technology-based approach, eliminating manual crop-cutting experiments.
• WINDS (Weather Information and Network Data Systems):
  • Plans to deploy Automatic Weather Stations (AWS) at block levels and Automatic Rain Gauges (ARGs) at Panchayat levels.
  • Expected to increase weather data density fivefold, with pilot implementation in Kerala, Uttar Pradesh, and Himachal Pradesh starting in 2024-25.

Special Provisions for Northeastern States:

• Higher Subsidy: The Central Government will bear 90% of the premium subsidy for farmers in the Northeast.
• Flexibility in Fund Allocation: Funds can be reallocated to other projects if cropping areas or participation levels remain low.

Key Benefits of the Extension:

• Improved Risk Coverage: Comprehensive insurance protection against crop losses due to natural calamities.
• Technology-Driven Transparency: Faster and more accurate claim settlements through digital tools.
• Special Focus on the Northeast: Higher subsidies and tailored policies for farmers in this region.

Conclusion: The extension of PMFBY and RWBCIS demonstrates the government’s commitment to empowering farmers by safeguarding their livelihoods against unpredictable natural risks. With a significant boost in funding and the integration of advanced technology, these schemes aim to revolutionize agricultural insurance in India, ensuring better resilience and financial stability for farmers nationwide.