Period Covered: 1 February 2025 – 28 February 2025
Primary Focus: Union Budget 2025-26, Economic Survey 2024-25, RBI Monetary Policy, and Global Strategic Shifts.
Target Audience: Aspirants of UPSC CSE, SSC CGL, RBI Grade B, NABARD, and State PSCs.
SECTION 1: THE UNION BUDGET 2025-26 (SPECIAL FEATURE)
Economy & Finance | High Probability for Mains & Banking Exams
1.1 The “Sabka Vikas” Budget: Macro-Fiscal Architecture
Event: On February 1, 2025, Union Finance Minister Nirmala Sitharaman presented the Union Budget for the Financial Year 2025-26. The budget was anchored on the theme of “Sabka Vikas” (Development for All), with a strategic focus on four castes defined by the Prime Minister: Garib (Poor), Yuva (Youth), Annadata (Farmers), and Nari (Women).
Examination Analysis:
The budget signals a decisive shift towards fiscal consolidation while maintaining the impetus on capital expenditure (Capex). For banking aspirants, the specific deficit targets are critical.
| Fiscal Indicator | 2024-25 (Revised Estimates) | 2025-26 (Budget Estimates) | Exam Significance |
|---|---|---|---|
| Total Expenditure | ₹ 47.16 Lakh Crore | ₹ 50.65 Lakh Crore | 7.4% increase over RE 2024-25. |
| Fiscal Deficit | 4.8% of GDP | 4.4% of GDP | Indicates adherence to the fiscal glide path towards 4.5%. |
| Revenue Deficit | 1.9% of GDP | 1.5% of GDP | Shows improvement in quality of expenditure. |
| Capital Expenditure | ₹ 10.18 Lakh Crore | ₹ 11.21 Lakh Crore | 3.1% of GDP; Highest ever allocation. |
| Gross Tax Revenue | ₹ 38.53 Lakh Crore | ₹ 42.70 Lakh Crore | Budgeted to increase by 10.8%. |
| Nominal GDP Growth | – | 10.1% | Basis for revenue projections. |
1.2 New Income Tax Regime Reforms (Finance Bill 2025)
Policy Shift: The government introduced significant relief for the middle class to boost consumption. A 100% tax rebate was announced for income up to ₹12 Lakh under the New Tax Regime, raising the limit from the previous ₹7 lakh.
| Income Slab (New Regime 2025) | Tax Rate | Remarks |
|---|---|---|
| Up to ₹ 4,00,000 | Nil | Basic exemption limit raised. |
| ₹ 4,00,000 – ₹ 8,00,000 | 5% | Rebate u/s 87A applies up to ₹12L income. |
| ₹ 8,00,000 – ₹ 12,00,000 | 10% | Effective tax is zero for income ≤ ₹12L. |
| ₹ 12,00,000 – ₹ 16,00,000 | 15% | – |
| ₹ 16,00,000 – ₹ 20,00000 | 20% | – |
| ₹ 20,00,000 – ₹ 24,00,000 | 25% | – |
| Above ₹ 24,00,000 | 30% | Highest slab rate. |
1.3 Key Sectoral Missions & Schemes Announced
- Prime Minister Dhan-Dhaanya Krishi Yojana:
- Objective: To boost agricultural productivity in 100 districts with low yield but high potential.
- Target: 1.7 Crore farmers.
- Strategy: Convergence of existing schemes and specialized credit support.
- PM Research Fellowship (Expansion):
- Target: 10,000 fellowships over 5 years.
- Institutions: IITs and IISc.
- Goal: To foster technological research and innovation.
- Nuclear Energy Mission (SHAKTI):
- Outlay: ₹20,000 Crore.
- Focus: Research and development of Small Modular Reactors (SMRs).
- Target: Operationalize at least 5 indigenous SMRs by 2033.
- Legislative Change: Amendments proposed to the Atomic Energy Act, 1962 to allow private sector partnerships.
- National Geospatial Mission: Announced to develop foundational geospatial infrastructure and modernize land records for urban planning.
- Gyan Bharatam Mission: Aims to survey, document, and conserve 1 crore manuscripts of India’s heritage involving museums and private collectors.
SECTION 2: BANKING, MONETARY POLICY & FINANCE
Economy & Banking | Critical for RBI Grade B & IBPS
2.1 RBI Monetary Policy Statement (February 2025)
Development: In its meeting held on February 7, 2025, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) announced a pivotal shift in its stance.
- Policy Rate Cut: The Repo Rate was reduced by 25 basis points (bps) to 6.25% (down from 6.50%).
- Significance: This was the first rate cut in five years, marking the beginning of an easing cycle to support growth amidst global economic uncertainties.
- Stance: Shifted to “Neutral” to remain accommodative if growth falters.
- GDP Forecast (FY26): Projected at 6.7% (Economic Survey estimated 6.3%-6.8%).
- CPI Inflation Forecast (FY26): Projected at 4.2%, assuming a normal monsoon.
2.2 The Economic Survey 2024-25
Tabled On: January 31, 2025 (Discussed extensively in February).
- Theme: Resilience and Recovery.
- Key Projections:
- Real GDP Growth (FY25): Estimated at 6.4%.
- Real GDP Growth (FY26): Projected range 6.3% to 6.8%.
- R&D Expenditure: Highlighted as a concern, currently at only 0.64% of GDP. Recommended industry-academia collaboration.
- Strategic Insight: The Survey emphasized that India needs sustained growth to become a developed nation by 2047 and highlighted the “Manufacturing Boom” beginning to take shape.
SECTION 3: POLITY, LEGISLATION & GOVERNANCE
Polity | Important for UPSC GS-II & SSC
3.1 Key Appointments in February 2025
| Person | Designation / Role | Details / Significance |
|---|---|---|
| Gyanesh Kumar | Chief Election Commissioner (CEC) | Appointed on Feb 19, 2025. He succeeds Rajiv Kumar. This was the first appointment under the new CEC Act provisions. |
| Rekha Gupta | Chief Minister of Delhi | New political leadership in the NCT of Delhi. |
| Shaktikanta Das | Principal Secretary-2 to PM | Former RBI Governor appointed to the Prime Minister’s Office. |
| N. Chandrasekaran | Chairman, Ratan Tata Endowment | Appointed in Feb 2025; leads the philanthropic arm of the Tata Group. |
| B.V.R. Subrahmanyam | CEO, NITI Aayog | Tenure extended by the central government. |
| Justice Surya Kant | Executive Chairman, NALSA | Appointed to lead legal aid services (Note: He became CJI later in Nov 2025). |
3.2 Legislative Bills Introduced/Passed
- Income Tax Bill, 2025: Introduced in Lok Sabha on 13 February 2025. It was referred to a Select Committee for examination to simplify the 1961 Act. (Note: Later withdrawn and reintroduced as Income-Tax (No. 2) Bill in August).
- The “Tribhuvan” Sahkari University Bill, 2025: Introduced/Passed around Feb 3, 2025, to establish a cooperative university.
- Protection of Interests in Aircraft Objects Bill, 2025: Passed by Rajya Sabha on Feb 10, 2025, to align India with the Cape Town Convention, aiding aircraft leasing.
SECTION 4: SCIENCE, TECHNOLOGY & SPACE
Science & Tech | Crucial for UPSC GS-III & State PSCs
4.1 Major Scientific Milestones
- Microsoft Majorana 1 Chip: On February 19, 2025, Microsoft unveiled the ‘Majorana 1’ quantum chip. It uses topological qubits, a breakthrough that promises stable quantum computing by reducing error rates significantly compared to traditional qubits.
- Fusion Energy Record: On February 12, 2025, the WEST Tokamak in France set a new world record by sustaining plasma for 1,337 seconds. This is a critical step towards viable nuclear fusion energy.
- National Science Day (Feb 28):
- Theme 2025: “Empowering Indian Youth for Global Leadership in Science and Innovation for Viksit Bharat”.
- Events: Institutions like JNCASR showcased simulations of the Mpemba Effect (hot water freezing faster than cold), a phenomenon explained by Indian scientists earlier in the year.
4.2 Space Sector Updates
- IM-2 Mission Launch: Intuitive Machines’ IM-2 Nova C lunar lander launched on February 26, 2025. It carried NASA science payloads to the Mons Mouton region near the Moon’s south pole.
- Gaganyaan Progress: In February 2025, it was reported that the budget for the Gaganyaan mission was increased, and key propulsion systems passed qualification tests, paving the way for uncrewed test flights.
SECTION 5: SPORTS & AWARDS
Sports | High Relevance for SSC & Railways
5.1 Major Sporting Events & Winners
| Tournament | Category | Winner / Key Outcome |
|---|---|---|
| Australian Open 2025 | Men’s Singles | Jannik Sinner (Italy) |
| Women’s Singles | Madison Keys (USA) | |
| 38th National Games 2025 | Host State | Uttarakhand (Jan 28 – Feb 14, 2025) |
| Mascot | Mauli | |
| Men’s Hockey India League | 2024-25 Title | Shrachi Rarh Bengal Tigers (Defeated Hyderabad Storm on Feb 1, 2025) |
| Asian Winter Games 2025 | Host | Harbin, China (Feb 7–14) |
| Para Archery Asia Cup | Medal Tally | India topped with 6 Gold Medals (Bangkok, Feb 2025) |
5.2 Awards & Honours (Announced/Conferred in Feb 2025)
- Grammy Awards 2025: Chandrika Tandon won the first Grammy for her album “Triveni” (Feb 2025).
- Allan Border Medal 2025: Australian cricketer Travis Head was awarded the Allan Border Medal and named Men’s ODI Player of the Year.
- TIME Women of the Year 2025: Dr. Purnima Devi Burman (Conservationist, Hargila Army) was the only Indian on this prestigious list.
- Forward Faster Sustainability Award: Awarded to NTPC Limited for leadership in water resilience.
- Sportstar Aces Awards 2025: P.R. Sreejesh (Hockey) won the ‘Sportstar of the Year (Male)’ award.
SECTION 6: INTERNATIONAL AFFAIRS & SUMMITS
International Relations | GS-II
- Paris AI Summit 2025: Held in February at the Grand Palais, Paris.
- Theme: “Unlocking Economic Opportunities Enabled by AI”.
- Leadership: Co-hosted by French President Emmanuel Macron and Indian PM Narendra Modi.
- World Government Summit 2025: Held in Dubai, UAE.
- Theme: “Shaping Future Governments”.
- India-UK Energy Dialogue (4th Edition): Held in New Delhi.
- Theme: “Advancing India’s Energy Transition”.
- 9th Asia Economic Dialogue: Held in Pune, Maharashtra.
- Theme: “Economic Resilience and Resurgence in an Era of Fragmentation”.
- International Leaders:
- Bart Albert Liliane De Wever became Prime Minister of Belgium.
- Ilie Bolojan became Interim President of Romania.
SECTION 7: STATE NEWS & MISCELLANEOUS
State Exams & General Awareness
- Uttar Pradesh: Became the first state to introduce a real-time AI-based translator facility for government services.
- West Bengal: Recorded the highest number of bird species in the annual bird census.
- Delhi: Rekha Gupta assumed office as the Chief Minister of Delhi.
- Udaipur (Rajasthan): Hosted the 2nd All India State Ministers’ Conference on Water Vision @2047.
QUICK REVISION: HIGH YIELD FACTS
- Repo Rate Cut: 25 bps (Current Rate: 6.25%).
- Fiscal Deficit Target FY26: 4.4% of GDP.
- Income Tax Rebate Limit: Increased to ₹12 Lakh.
- New CEC: Gyanesh Kumar.
- Hockey India League Winner: Shrachi Rarh Bengal Tigers.
- Australian Open Winners: Jannik Sinner (M) & Madison Keys (W).
- National Science Day Theme: Empowering Indian Youth for Global Leadership.
- Major Tech: Microsoft Majorana 1 Quantum Chip.
RAPID FIRE EXAM QUIZ (FEBRUARY 2025)
Q1. In the Union Budget 2025-26, the fiscal deficit target for FY26 has been set at what percentage of GDP?
A. 5.1%
B. 4.8%
C. 4.5%
D. 4.4%
Ans: (D) 4.4%
Q2. Who was appointed as the Chief Election Commissioner of India in February 2025?
A. Rajiv Kumar
B. Gyanesh Kumar
C. Sukhbir Sandhu
D. T.N. Seshan
Ans: (B) Gyanesh Kumar
Q3. Which team won the Men’s Hockey India League 2024-25 title in February 2025?
A. Hyderabad Storm
B. Kalinga Lancers
C. Shrachi Rarh Bengal Tigers
D. Delhi Waveriders
Ans: (C) Shrachi Rarh Bengal Tigers
Q4. The ‘Majorana 1’ quantum chip, unveiled in February 2025, was developed by which technology giant?
A. Google
B. IBM
C. Microsoft
D. Intel
Ans: (C) Microsoft
Q5. Which Indian conservationist was named in the TIME Women of the Year 2025 list?
A. Vandana Shiva
B. Sunita Narain
C. Dr. Purnima Devi Burman
D. Saalumarada Thimmakka
Ans: (C) Dr. Purnima Devi Burman
