The Government of India has recently highlighted some fascinating findings from its verification process of beneficiaries under the national food security scheme. According to a data, presented in the Rajya Sabha by the Food and Consumer Affairs Minister, Pralhad Joshi, approximately 5.6 lakh individuals over 100 years old have been identified as beneficiaries of the scheme. This data was uncovered through an extensive e-KYC verification process, which aims to ensure that only eligible individuals receive government aid.

An Overview of the Food Security Scheme

The food security programme, which includes several sub-schemes, plays a vital role in providing subsidised food to the underprivileged sections of society. Notably, the Antyodaya Anna Yojana (AAY) provides 35 kg of free food grains per month to the poorest families. For families with a single member, 35 kg of grains is allotted monthly, while other families may receive different amounts based on their eligibility.

Additionally, the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) ensures that each registered beneficiary receives 5 kg of free food grains per month. While the programme targets low-income individuals, discrepancies in the beneficiary lists have surfaced during the verification process.

Key Findings from the e-KYC Verification

According to a news report, the verification process, which employed the use of Aadhaar data, revealed some significant findings. A notable discovery was the identification of nearly 34 lakh PMGKAY beneficiaries who were no longer alive. This indicates the need for continued vigilance and regular updates to the list of beneficiaries to avoid errors in allocation.

As per report, another important revelation was that about 45 lakh AAY ration cards had been issued to families consisting of only 2 members. Furthermore, a staggering 33.2 lakh duplicate beneficiaries were identified, underscoring the importance of thorough scrutiny. Around 2.2 crore beneficiaries were also found to be in the ‘silent ration card’ category, which means they had not availed of their ration for periods ranging from three to twelve months.

Progress of the e-KYC Process

As of the latest update, the government has completed the e-KYC verification for 74% of the total 80 crore beneficiaries. This verification is crucial to ensuring that only eligible individuals receive food grains under these schemes. Minister Pralhad Joshi emphasised that the government is committed to cleaning up the beneficiary lists to ensure that deserving families are not deprived of their entitled food resources.

Addressing the Issues of Incorrect Allocations

During the verification process, it was revealed that over 2.1 lakh ration cards had been issued to families with a single member below 18 years of age. The government is also tackling the problem of duplicate beneficiaries, where multiple individuals were found to be registered under the same family or category. Minister Joshi assured that the details of ineligible beneficiaries had been shared with state governments, allowing them to correct the records by removing the duplicates and adding deserving candidates.

State Government’s Role in the Process

It is essential to note that state governments are responsible for issuing ration cards, and they have the flexibility to set their criteria within the prescribed ceiling limits. As of now, nearly 81.4 crore people are eligible for free food grains, with about 80.6 crore already enrolled in the system. The government is aiming to add 80 lakh more beneficiaries, ensuring that those who genuinely require food security are included in the system.

The Broader Picture of Poverty Alleviation

In his address, Minister Joshi also cited World Bank data, which states that between 13 crore and 25 crore people have moved out of multi-dimensional poverty over the past nine years. This data suggests that the food security schemes, along with other poverty alleviation efforts, are contributing to significant improvements in living conditions for many Indians.

Conclusion: A Step Towards Accuracy and Inclusion

The ongoing e-KYC exercise is not just about cleaning up the list of beneficiaries but also about ensuring that food grains reach those who need them the most. While the process has unearthed several discrepancies, the government’s commitment to improving the allocation system is a crucial step in the right direction. With regular updates, a more transparent and efficient food security system will be established, benefiting those who truly require support.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

More Indians are choosing lab-grown diamonds, pushing homegrown startups to expand quickly and tap into the growing demand for affordable, sustainable jewellery, as per the latest reports. The domestic market, while still in its early stages, has seen an increase in the number of startups attempting to build a national presence. 

According to market reports, India currently has 37 lab-grown diamond startups, the highest number globally.

No Dominant Player Yet

Despite the presence of established jewellers in the space, no single company has emerged as a market leader. This has created opportunities for newer entrants to scale operations and build brand identity. Startups are increasing their retail footprint to meet growing demand and compete for visibility in Tier 1 cities.

Jewelbox Expands Retail Network

Kolkata-based Jewelbox operates eight stores across 6 cities, including Delhi, Chennai, and Bengaluru. The brand has announced plans to open 25 more outlets by the end of the financial year. Around 40% of its orders currently come from its online platform. The company was also featured on Shark Tank India and secured investment from judges associated with companies like boAt, Sugar Cosmetics, Lenskart, and Oyo.

Other Startups in the Sector

Other startups building a presence in this segment include Limelight, Fiona Diamonds, Wondr Diamonds, Titan Capital-backed Truecarat Diamonds, Aupulent Jewellery, and Alteria Capital-backed Aukera Jewellery. Traditional players are also entering the space. Augmont, a gold trading platform, recently invested ₹100 crore to launch its lab-grown diamond brand, Akoirah.

Pricing and Supply Chain 

Unlike natural diamonds, which are priced based on the Rapaport price list, lab-grown diamonds are priced according to production costs and retailer margins. Over the past year, prices have dropped by 25-30% due to oversupply and relatively low production costs. Margins across the supply chain have been reduced, making pricing more competitive.

Conclusion

Lab-grown diamond startups are scaling operations to meet rising demand, with no clear market leader yet. The focus remains on expanding retail presence and managing costs in a price-sensitive, fast-evolving category.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The government is on the verge of finalising the establishment of the 8th Pay Commission, which will play a pivotal role in revising the salary and pension structure for central government employees. As per news reports, the terms of reference for the commission are expected to be sent for cabinet approval by early next month, and the formal notification will be issued once the cabinet clears it. The 8th Pay Commission is anticipated to commence its operations in April 2025, following a lengthy but necessary process of approvals.

Expected Timeline for the 8th Pay Commission

Once the terms of reference are finalised, the commission will begin its operations. If the approval process is completed by the end of this month, it is expected that the commission will submit its final report by March 2026. Previous pay commissions have taken more than a year to finalise their recommendations, and this process could conclude within the same time frame, although it is possible that the timeline might be shorter.

The government has already sought suggestions from various ministries, including the Ministry of Defence, Ministry of Home Affairs, and the Department of Personnel and Training (DoPT), regarding the areas the commission should focus on for recommendations. A top government official confirmed that some suggestions have already been received, while others are still awaited. The official further clarified that the commission will be notified as soon as it is approved by the Cabinet.

Financial Implications and Impact

The upcoming revisions are set to affect over 50 lakh central government employees and pensioners, including defence personnel. This will undoubtedly have a substantial financial impact on the Indian government. For instance, the implementation of the Seventh Pay Commission in 2016 led to a significant increase in government expenditure, with an estimated cost of Rs 1 lakh crore in FY17. However, the financial burden of the 8th Pay Commission will only be realised starting from FY27.

Beyond the financial aspects, the proposed pay revisions are expected to have a positive impact on economic growth. By increasing the disposable income of government employees, the revisions will likely stimulate consumption, thereby improving the quality of life for these individuals. This, in turn, is expected to have broader economic benefits for the country.

A Look Back at Past Pay Commissions

Since the independence of India, 7 pay commissions have been established, with the most recent one being implemented in 2016. Each of these commissions has played a significant role in shaping salary structures, allowances, and pension benefits for government employees. Their recommendations have had a profound impact on public finances and have consistently influenced the overall economic landscape. As a result, the 8th Pay Commission is being watched closely by government employees, pensioners, and economists alike.

Conclusion

While the specifics of the upcoming pay revisions are still being finalised, the government has ruled out merging 50% of the Dearness Allowance (DA) and Dearness Relief (DR) with basic pay and pensions, at least for now. Minister of State for Finance, Pankaj Chaudhary, clarified this in a statement made in the Rajya Sabha on March 20, indicating that such a proposal will not be considered at present.

With the Cabinet’s approval anticipated soon, all eyes will be on the 8th Pay Commission as it prepares to impact the lives of millions of government employees and pensioners across the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The Mahila Samman Savings Certificate (MSSC) is a government-backed small savings scheme designed exclusively for women and girls. Launched to promote financial inclusion and economic independence, this scheme offers a secure and rewarding investment opportunity with a fixed tenure of two years. With an attractive interest rate and flexible withdrawal provisions, it serves as a reliable savings option for women seeking financial growth.

Individuals considering investing in this small savings scheme should note the upcoming deadline. The Mahila Samman Savings Certificate scheme will close for new investments on March 31, 2025.

Eligibility and Investment Details

The MSSC scheme is open exclusively to women and girls, with the provision for guardians to invest on behalf of minors. The minimum deposit amount required is Rs 1,000, while the maximum permissible investment is Rs 2 lakh per individual. The scheme ensures steady returns by offering an annual interest rate of 7.5%, which is compounded quarterly and credited to the account. Upon maturity, the accumulated amount, including interest, is paid out in full. Additionally, account holders can withdraw up to 40% of their deposit after one year, providing financial flexibility in case of urgent requirements.

Tax Implications

While the MSSC offers high returns, it does not provide tax benefits under Section 80C of the Income Tax Act. The interest earned is classified under “Income from Other Sources” and is taxable accordingly. Investors should factor in these tax implications while comparing MSSC with other tax-saving investment alternatives.

Interest Rate Comparison with Bank Fixed Deposits

For those evaluating alternative investment options, a comparison with two-year fixed deposit (FD) rates across major banks is essential.

The State Bank of India (SBI) offers a 6.80% interest rate for general citizens, with senior citizens receiving an additional 50 basis points for terms between one year and under two years. HDFC Bank provides a 7.25% interest rate for general depositors, with a similar 50-basis-point benefit for seniors on deposits ranging from 18 months to under two years. Canara Bank offers a peak rate of 7.25% for a 444-day FD, while Axis Bank matches this rate for tenures between 15 months and two years, granting senior women an additional 0.50%.

Conclusion

The Mahila Samman Savings Certificate stands out as a structured and secure investment tailored for women. With a competitive interest rate and partial withdrawal benefits, it presents a lucrative savings option. However, potential investors should weigh tax considerations and compare available alternatives to make informed financial decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

India’s Strategy to Address Reciprocal Tariffs

India is looking to mitigate the effects of U.S. President Donald Trump’s reciprocal tariffs, set to take effect from April 2. These tariffs are expected to disrupt global markets, prompting urgent responses from policymakers. Internal estimates suggest they could impact 87% of India’s total exports to the U.S., valued at $66 billion, as per news reports.

To offset these risks, India is considering reducing tariffs on 55% of U.S. imports currently subjected to duties between 5% and 30%. Some tariffs may be significantly lowered or removed altogether on goods exceeding $23 billion in value.

Trade Negotiations and Future Outlook

Following Prime Minister Narendra Modi’s visit to the U.S. in February 2025, both nations agreed to initiate discussions for an early trade deal to resolve tariff-related disputes. New Delhi is keen to finalise an agreement before the reciprocal tariffs take effect.

The U.S. maintains a trade deficit of $45.6 billion with India, with a trade-weighted average tariff of 2.2%, compared to India’s 12%. Assistant U.S. Trade Representative for South and Central Asia, Brendan Lynch, is set to lead a delegation for trade discussions from March 25, 2025.

Meanwhile, India is also exploring broader tariff reforms to lower trade barriers uniformly. However, these discussions remain in the early stages and may not be immediately addressed in talks with the U.S.

Conclusion

India’s move to reduce tariffs on U.S. imports reflects its efforts to safeguard exports and ease trade tensions. While the immediate focus is on securing a deal before the new tariffs take effect, broader trade policy reforms remain under consideration.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.