PM Narendra Modi's visit to France in 2025

Prime Minister Narendra Modi's visit to France in February 2025 proved to be an important step towards strengthening India and France's bilateral relations. The visit was full of strategic discussions, high-level diplomatic meetings and agreements promoting cooperation in artificial intelligence, nuclear energy and trade. Historical ties and people-to-people contacts were also given prominence during this visit, further strengthening India's global influence.

Artificial Intelligence (AI) Summit and Technical Cooperation

PM Modi co-chaired the third International Artificial Intelligence Summit (AI Action Summit) along with French President Emmanuel Macron. The conference aimed to promote responsible AI development, equal availability of AI technology for all and transparency through open-source AI systems. This global platform underlined the role of AI in innovation, economic growth and reducing the digital divide.

Inauguration of Indian Consulate in Marseille

PM Modi and President Macron jointly inaugurated the Indian Consulate in the French city of Marseille. It was a historic moment as for the first time a French President attended the inauguration of a foreign consulate. The new embassy will help strengthen India-France trade relations, promote cultural and educational exchanges and improve commercial services.

Tributes to Indian soldiers

PM Modi paid tribute to Indian soldiers who fought in World War I and World War II at the Mazargues War Cemetery in Marseille. This historic act highlighted the historic ties between India and France and honoured the sacrifices of Indian soldiers in global wars. President Macron also attended the tribute event.

India-France cooperation in nuclear energy and science sector

Partnership in nuclear fusion technology

PM Modi visited the International Thermonuclear Experimental Reactor (ITER) facility at Cadarache, where India is a key partner. This project is one of the most ambitious research projects in the world for the development of clean and sustainable energy. The visit reiterated India's commitment to scientific research and also underlined France's role in developing India's energy capabilities.

Agreement on Small Modular Reactors

An important outcome of the visit was the announcement of establishing cooperation between India and France on advanced and small modular nuclear reactors. The agreement aims to develop innovative solutions for sustainable energy production, which will increase India's nuclear energy capacity.

Economic and Business Impact

India-France CEO Forum

Prime Minister Modi and President Macron attended the 14th India-France CEO Forum, attended by business leaders from key sectors including aerospace, defense, innovation, energy and infrastructure. Investment opportunities, cooperation in defense and civil nuclear energy were discussed at this forum. This forum proved to be an important opportunity to encourage long-term partnerships between Indian and French companies.

This visit of Prime Minister Modi has deeply strengthened India-France relations in various fields, including AI, nuclear energy, trade and investment. The visit not only strengthened strategic cooperation but also laid the foundation for long-term partnerships for the future.

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PM Surya Ghar Free Electricity Scheme

PM Surya Ghar: Free Electricity Scheme (PMSGMBY) is celebrating its first anniversary on 13 February 2025. Launched by Prime Minister Narendra Modi on 13 February 2024, the scheme aims to install solar rooftop panels in one crore households by March 2027, which will reduce electricity costs and promote sustainable development. The scheme has strengthened India's renewable energy sector and has contributed significantly to environmental protection.

Key Points of the Scheme

World's largest rooftop solar scheme - Target to benefit 1 crore families by 2027.

Current Progress - Solar panels installed in 8.46 lakh homes as of 27 January 2025.

Increasing installation rate – Monthly installations increased tenfold to 70,000 per month.

Financial assistance – Central Financial Assistance (CFA) of ₹4,308.66 crore disbursed to 5.54 lakh households.

Subsidy benefits – Subsidy up to 40%, averaging ₹77,800 per household.

Zero electricity bill – 45% beneficiaries are not receiving any electricity bill.

Top 5 States – (data awaited).

Key benefits

Free electricity – Cut down electricity bills with solar power for households.

Government savings – Savings in electricity cost of ₹75,000 crore per year.

Promoting renewable energy – Increase in adoption of solar power.

Reducing carbon emissions – Supports India’s climate goals.

Impact of the scheme

Household savings and income – Consumers can sell their excess power to DISCOMs.

Solar capacity addition – 30 GW of solar rooftop capacity will be added under the scheme.

Environmental impact –

1,000 BUs electricity generation over 25 years.

720 million tonnes of CO₂ emission reduction.

Employment generation – 17 lakh new jobs in installation, construction and maintenance.

Model Solar Village Initiative

Target – To set up one model solar village in each district.

Fund allocation – ₹800 crore, ₹1 crore to each village.

Selection criteria – 5, Revenue villages with 1,000+ population (2,000+ population in special category states).

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India's Index of Industrial Production recorded a growth of 3.2% in December 2024

India's industrial production growth declined to 3.2% in December 2024 from 5% in November. According to the Index of Industrial Production (IIP), the main reason for this decline was the weak performance of the manufacturing sector, while power generation recorded strong growth. This slowdown is raising concerns about India's overall economic momentum as we enter 2025.

What were the reasons for the slowdown in industrial growth?

The decline in industrial production in December was affected by the performance of several sectors. The manufacturing sector, which is a major contributor to the IIP, grew only 3%, as against 4.6% in December 2023. Mining sector production also slowed down, and it grew 2.6%, as against 5.2% in the same month last year. However, electricity generation grew significantly by 6.2%, up from 1.2% in December 2023.

Which sectors were most impacted?

The impact of the industrial slowdown was uneven across different sectors:

Capital Goods: Investment in this sector remained strong and grew by 10.3%, up from 3.7% last year.

Consumer Durables: Demand in this sector increased to 8.3%, up from 5.2% in December 2023.

Consumer Non-Durables: This sector recorded a sharp decline of 7.6%, as against a growth of 3% in the same period last year.

What will be the impact on India's economy in 2025?

This industrial slowdown comes at a time when India's economic growth rate for 2024-25 is estimated to be 6.4%, which will be the slowest in the last four years. According to economists, the reason for this decline may be the base effect and weakness of private investment. However, the government's infrastructure investment and rising consumer demand may help keep industrial production stable in the coming months.

As India enters 2025, policymakers will have to focus on reviving the manufacturing sector and boosting investment so that industrial production remains on track. Global economic conditions will also play an important role in this, so India's industrial production will be closely monitored.

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Lateral Entry Scheme

The Government of India's Lateral Entry Scheme was launched in 2018. It aimed to improve good governance and efficiency by involving private sector experts in administrative services. Under this scheme, external professionals were appointed to important posts like Joint Secretary, Director and Deputy Secretary. However, over time, the scheme faced political and practical challenges, necessitating a change in its original form. Let's take a look at its evolution, challenges and uncertain future.

Objective

The main objective of the scheme was to induct new expertise into the government machinery. Under this, experienced professionals from the private sector were appointed to the government on a contract or deputation basis for three to five years. This initiative was brought to incorporate innovation and modern approach in the administration.

However, the scheme has not been as effective as expected. Only 63 appointments have been made since 2018, and the scheme seems to attract more officers from the public sector (PSUs) rather than the private sector. This gap between expectation and reality raised questions about the relevance of the scheme.

Why the scheme is opposed?

In August 2024, the Government of India had to withdraw the decision to recruit 45 new officers under lateral entry. The reason was - allegations of ignoring social justice and reservation system by opposition parties.

Many political parties and social organizations accused the government of ignoring the rights of reserved classes through this scheme. Following this protest, Union Minister Ashwini Vaishnav made it clear that Prime Minister Narendra Modi has assured to implement caste-based reservation in all appointments made under lateral entry in future. This move is being considered an attempt by the government to strike a balance between expertise and social justice.

What will be the future of the scheme?

Currently, the scheme is under review, and there is little chance of a return to its original form. The government is considering restructuring it so that it can attract more talent and also ensure equitable representation.

Possible changes may include the inclusion of a reservation system, improving the selection process, and making a more Constitution-compliant policy. However, uncertainty remains about the future of this scheme.

Impact of Lateral Entry Scheme on Indian Administration

The Lateral Entry Scheme was an ambitious initiative of the government, aimed at empowering the administrative services with new ideas and modern expertise. But the scheme is facing serious challenges due to political pressure and questions raised about the fair recruitment process.

The government's decision that it will be revised shows that it is committed to promoting specialisation as well as maintaining the principles of social justice. Therefore, unless the scheme is brought in a new and balanced form, its implementation will remain uncertain.

Why in the news?

• Key Points

Lateral Entry Scheme –Restructuring and political opposition The government cancelled the recruitment of 45 mid-level bureaucrats under the scheme after the opposition criticised it for not having caste-based reservation.

Year of launch of the scheme The scheme was launched in 2018 to bring in experts from the private sector to take up administrative positions.

Appointments made so far 63 appointments have been made since the scheme was launched.

Current status- The scheme is under review, and its future remains uncertain due to political and practical challenges.

Key Minister concerned- Union Minister Ashwini Vaishnaw said that Prime Minister Narendra Modi has assured to implement reservation in future appointments.

The scheme aims to appoint private sector professionals on contractual/deputation basis to posts such as joint secretary, director and deputy secretary.

Controversy related to reservation Lateral entry appointments faced political opposition due to the absence of caste-based reservation.

Implementation of reservation Future lateral entry appointments will include reservation for reserved categories.

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Income Tax Bill, 2025

Finance Minister Nirmala Sitharaman introduced the Income Tax Bill, 2025 in the Lok Sabha on 13 February 2025. This bill has been brought to replace the Income Tax Act, 1961

Although the opposition parties opposed this bill, it was introduced in the Lok Sabha through voice vote.

Key features of Income Tax Bill, 2025 Presentation of the bill and parliamentary procedure

Finance Minister Nirmala Sitharaman introduced it in the Lok Sabha on 13 February 2025.

Opposition parties protested against it, but the bill was approved through voice vote.

The bill has been sent to the Select Committee of the Lok Sabha for detailed scrutiny.

Objectives of the new bill

• To simplify tax laws and remove old complex terminology.

• To introduce clear and easy to understand provisions for taxpayers.

• Reducing tax disputes and making processes more transparent.

• Incorporating modern tax concepts in line with global tax systems.

Key terminology changes

• The term “Assessment Year” and “Previous Year” has been replaced by the term “Tax Year”.

• Earlier, income earned in 2023-24 was considered taxable in the assessment year 2024-25.

• Now, it will be directly considered as part of the “tax year”, making the process simpler.

 Structural changes in the Income Tax Law

• The number of sections has been increased from 298 in the Income Tax Act of 1961 to 536.

• The number of schedules has been increased from 14 to 16.

• Unnecessary provisions and explanations have been removed to make the bill easier to read and understand.

Possible impact

• Tax compliance will be easier for taxpayers.

• The process of filing taxes will become more transparent and smooth.

• Quick resolution of tax disputes will speed up the judicial process.

• Tax laws can be made more flexible and adaptable according to the changing economic scenario.

The Income Tax Bill, 2025 aims to simplify, modernize and make India's tax system more effective, providing more clarity to taxpayers and improving government revenue collection.

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India-US Bilateral Relationship

Prime Minister Narendra Modi and US President Donald Trump held a bilateral meeting at the White House in the US.

Introduction

• Prime Minister Narendra Modi and US President Donald Trump met in Washington, marking a significant milestone in the India-US bilateral relationship.
• The two leaders discussed defence cooperation, trade expansion, energy security, and technology collaboration.
• Key agreements were signed, reinforcing the strategic partnership between the world’s two largest democracies.
• During the meeting, both leaders committed to enhancing defence trade, setting ambitious trade targets, and boosting collaboration in advanced technologies like artificial intelligence (AI), semiconductors, and space exploration.

Key Agreements Between India and the US

• Defence Cooperation and F-35 Fighter Jet Sale
  • The US will sell F-35 stealth fighter jets to India, strengthening India's air combat capabilities.
  • A new ten-year framework for US-India Major Defence Partnership will be signed this year.
  • India will procure six additional P8I maritime surveillance aircraft.
  • Joint defence manufacturing and technology sharing agreements will enhance cooperation.
  • A review of International Traffic in Arms Regulations (ITAR) will streamline defence trade and technology exchange.
  • The US will work with India on autonomous defence technologies under the Autonomous Systems Industry Alliance (ASIA).
• Extradition of 26/11 Terror Accused Tahawwur Rana
  • President Trump confirmed the extradition of Tahawwur Rana, wanted for his role in the 2008 Mumbai terror attacks.
  • The US Supreme Court approved his extradition, reinforcing India-US cooperation in counterterrorism.
  • Both nations committed to strengthening law enforcement collaboration against organized crime and terrorism.
• ‘Mission 500’: Expanding India-US Trade
  • The two nations set a target of $500 billion in annual bilateral trade by 2030.
  • A new Bilateral Trade Agreement (BTA) will be signed by fall 2025.
  • Indian companies have invested $7.35 billion in the US, creating 3,000+ high-quality jobs.
  • The US imposed reciprocal tariffs, but both nations agreed to resolve trade barriers.
• Energy Security and Nuclear Cooperation
  • India will increase oil and gas imports from the US, reducing trade imbalances.
  • The US will support India’s membership in the International Energy Agency (IEA).
  • Both countries will fully implement the US-India 123 Civil Nuclear Agreement.
  • Plans include the construction of US-designed nuclear reactors in India.
  • Collaboration on advanced modular nuclear reactors will ensure long-term energy security.
• People-to-People Connections and Education
  • The US recognized the 300,000-strong Indian student community, contributing $8 billion annually to the US economy.
  • Plans include:
  • Joint degree programs between US and Indian universities.
  • Twinning programs for student exchange.
  • Offshore campuses of US institutions in India.
  • The two countries committed to streamlining visa processes for professionals and students.
• Technology and Innovation Partnerships
  • Launch of US-India TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative to promote critical technologies.
  • Expansion of INDUS Innovation, a program to foster tech collaboration in AI, semiconductors, and space exploration.
  • India and the US will jointly develop quantum computing and biotechnology projects.
  • A new Strategic Mineral Recovery Initiative will help India access critical minerals like lithium, cobalt, and rare earth elements.
  • The US National Science Foundation and Indian Anusandhan National Research Foundation signed an MoU for research collaborations.
• Multilateral Cooperation and Indo-Pacific Strategy
  • Both leaders reaffirmed commitment to QUAD (India, US, Australia, Japan).
  • PM Modi invited President Trump to India for the Quad Leaders’ Summit.
  • A new Indian Ocean Strategic Venture will focus on economic connectivity and commerce.
  • Both countries condemned cross-border terrorism and urged Pakistan to bring 26/11 and Pathankot attack perpetrators to justice.

Significance of the India-US Strategic Partnership

• Strengthening Defence Ties: The sale of F-35 jets and co-production agreements will boost India’s security.
• Trade and Investment Growth: ‘Mission 500’ sets a bold trade target for the next decade.
• Energy Security: Increased oil and gas imports and nuclear cooperation will enhance India’s energy stability.
• Technology Leadership: AI, quantum computing, and semiconductor initiatives will boost India’s tech ecosystem.
• Global Strategic Influence: India’s partnership with the US strengthens its position in the Indo-Pacific region.

Conclusion

• The India-US strategic partnership continues to grow, with major agreements in defence, trade, energy, and technology.
• The two nations are committed to enhancing economic cooperation, counterterrorism efforts, and global peace initiatives.
• As India and the US deepen their alliance, they set the stage for a stronger, more resilient partnership in the years ahead.

India-US Strategic Partnership Questions :

Q1. What is the significance of the F-35 deal between India and the US?

Ans. The F-35 sale strengthens India’s air combat capabilities and deepens US-India defence ties.

Q2. What is ‘Mission 500’ in India-US trade relations?

Ans. ‘Mission 500’ aims to increase bilateral trade to $500 billion by 2030.

Q3. How will India benefit from US-India nuclear cooperation?

Ans. The agreement will help India build US-designed nuclear reactors, ensuring energy security.

Q4. What are the key technology collaborations between India and the US?

Ans. AI, semiconductors, quantum computing, and space exploration are key focus areas.

Q5. What role does QUAD play in India-US strategic relations?

Ans. QUAD strengthens Indo-Pacific security and economic cooperation between India, the US, Australia, and Japan.

Source: TH | IE

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India-US TRUST Initiative

• India and the United States have initiated the Transforming Relationship Utilizing Strategic Technology (TRUST) initiative to enhance cooperation in the recovery and processing of critical minerals, including lithium and rare earth elements (REEs).
• Announced during the PM Modi’s recent visit to Washington, this partnership aims to strengthen supply chains for these essential materials.

India-US TRUST Initiative: Strengthening Critical Minerals Cooperation

• India and the United States launched the Transforming Relationship Utilizing Strategic Technology (TRUST) initiative to enhance bilateral cooperation in critical and strategic minerals, advanced materials, and pharmaceuticals.

Key Objectives

• Reducing Barriers to Technology Transfer – Streamlining regulations to facilitate innovation and trade.
• Addressing Export Controls – Ensuring smoother commercial exchange of strategic resources.
• Enhancing High-Tech Commerce – Strengthening collaboration in cutting-edge sectors.

Focus on Critical Minerals

• A Recovery and Processing Initiative will be launched for strategic minerals like lithium and rare earth elements (REEs) to boost supply chains.
• This move aims to counter China’s dominance in the global critical minerals market.

Alignment with Global Frameworks

• TRUST builds upon India’s participation in the US-led Minerals Security Finance Network and its induction into the Minerals Security Partnership (MSP) in 2023.
• Unlike multilateral frameworks, TRUST focuses on bilateral engagement, enabling faster execution and deeper collaboration.

Trust Initiative: Building on National Programmes for Critical Minerals

• The TRUST initiative builds upon existing national programmes in India and the US that focus on exploration, recycling, and R&D in processing technologies.

US Initiatives

• Critical Minerals and Materials (CMM) Programme (2020) – $675 million allocated to diversify supply chains and promote a circular economy.
• Battery and Critical Mineral Recycling Programme (2024) – $125 million in grants for R&D to enhance battery reuse and recycling.

India’s National Critical Minerals Mission

• Approved in January 2024, with a Rs 16,300 crore budget for seven years.
• Rs 7,000 crore allocated for critical mineral exploration.
• Rs 1,500 crore set aside for an incentive scheme to support recycling efforts.

Comparison with iCET Initiative

• In 2022, India and the US launched the Initiative on Critical and Emerging Technology (iCET) to collaborate on semiconductors, AI, and wireless communication, mainly for defence and security.
• The TRUST initiative has a broader focus, covering critical minerals and supply chains beyond just technology applications.

Significance of TRUST Initiative

• Unlike previous multilateral partnerships, however, the TRUST initiative will build on bilateral engagement.

Strategic Significance

• The initiative strengthens India-US strategic ties, ensuring resilience in critical supply chains.
• It accelerates joint efforts in exploration, extraction, processing, recycling, and recovery of essential minerals.
• TRUST marks a major milestone in India’s goal of becoming self-reliant in critical mineral resources.

Expanding Innovation Through the TRUST Initiative

• The TRUST initiative will foster collaboration between governments, academia, and the private sector to accelerate innovation in key fields, including:
  • Defence; Artificial Intelligence (AI); Semiconductors; Quantum Computing; Biotechnology; Energy andSpace.

Strengthening Pharma Supply Chains

• The initiative aims to enhance the pharmaceutical supply chain, focusing on active pharmaceutical ingredients (APIs) that rely on critical minerals like lithium, magnesium, zinc, and selenium.
  • In 2023, pharmaceutical products accounted for 21.9% of India’s $20 billion consumer goods exports to the US.
  • However, the sector faces risks due to potential tariffs that could be imposed by the Trump administration.
• India, the world’s second-largest API manufacturer after China, could benefit from securing these essential minerals.

Strengthening Bilateral Cooperation

• The initiative aims to deepen India-US collaboration in critical minerals by:
  • Reducing barriers to technology transfer
  • Addressing export controls
  • Enhancing high-tech commerce
• While the initiative falls short of giving Indian companies tax benefits from the US Inflation Reduction Act (IRA) for battery components and critical raw materials, it still broadens the scope for collaboration significantly.
  • Japanese companies enjoy this benefit.

Importance of Critical Minerals and Rare Earth Elements (REEs)

• Essential for Strategic Industries
  • Critical minerals and REEs play a key role in industries such as:
    • Defence (missiles, fighter jets, radars)
    • Semiconductors and AI hardware
    • Quantum computing
    • Energy storage and electric vehicles (EVs)
    • Biotechnology and medical diagnostics
    • Space technology
• Key Elements and Their Applications
  • Neodymium, praseodymium, samarium – Used in high-performance magnets for defence systems.
  • Lithium, cobalt, nickel – Power advanced batteries for energy storage and EVs.
  • Gallium, indium – Critical for semiconductors and AI hardware.
  • Ultra-pure silicon, superconducting materials – Essential for quantum computing.
  • Europium, terbium – Used in biotech imaging and medical diagnostics.
  • Scandium and heat-resistant alloys – Important for space technology.
• The Need for Diversified Supply Chains
  • China controls nearly 70% of global REE production and much of the processing infrastructure.
  • Securing diversified supply chains is crucial for technological sovereignty and national security.

India-US TRUST Initiative Questions:

Q1. What are the 25 critical minerals?

Ans. The U.S. defines 25 critical minerals, including lithium, cobalt, rare earth elements (REEs), graphite, and nickel, essential for technology and defense.

Q2. What are REEs used for?

Ans. Rare Earth Elements (REEs) are crucial for semiconductors, EV batteries, defense systems, quantum computing, AI, space technology, and medical diagnostics.

Q3. What is MSP in mining?

Ans. The Minerals Security Partnership (MSP) is a U.S.-led initiative to secure critical mineral supply chains and reduce reliance on China. 

Q4. Who are the members of the MSP Mineral Security Partnership?

Ans. MSP includes the U.S., Canada, EU, Australia, Japan, South Korea, and India, focusing on diversifying critical mineral sources.

Q5. What is iCET?

Ans. The Initiative on Critical and Emerging Technology (iCET) is a 2022 India-US partnership focused on semiconductors, AI, defense, and quantum computing.

Source: IE | ET | BS

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