AI in Judiciary, Digital Bill, Beti Padhao, Crypto & India-EU TTC | UPSC News Analysis 20 July 2025

Daily Current Affairs Analysis: (20th July 2025)

Daily Current Affairs Analysis: (20th July 2025)

(Presented by Sun Lo UPSC youtube channel)

Sources of Information: PIB, The Hindu, The Indian Express and Credible Govt Websites.

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Table of Contents

  1. Chapter 1: Governance, Polity, and Social Justice (GS Paper 2)
  2. Chapter 2: Indian Economy and Environmental Governance (GS Paper 3)
  3. Chapter 3: Science & Technology (GS Paper 3)
  4. Chapter 4: International Relations (GS Paper 2)
  5. Chapter 5: Exam-Oriented Special Sections

Chapter 1: Governance, Polity, and Social Justice (GS Paper 2)

1.1. The Digital Gavel: Navigating the Use of Artificial Intelligence in the Indian Judiciary

Introduction
The Indian judiciary is at a technological crossroads, navigating the promise of Artificial Intelligence (AI) to enhance efficiency while grappling with its potential to undermine the foundational principles of justice. This dynamic is captured by two parallel developments. On one front, the Supreme Court and the central government are championing the integration of AI for administrative and assistive tasks under the ambitious e-Courts Project. On another, the Kerala High Court has pioneered a landmark policy, drawing a clear red line against the use of AI in the core judicial decision-making process. Together, these trends signal the emergence of a sophisticated, two-tiered approach to AI adoption in one of the world's largest judicial systems.

The Kerala High Court's Landmark Policy: A Precedent for Caution
In a move described as the first of its kind in the country, the Kerala High Court on July 19, 2025, issued the 'Policy Regarding Use of Artificial Intelligence Tools in District Judiciary'. This policy sets a powerful precedent for regulating the use of generative AI tools like ChatGPT, Gemini, and Copilot within the judicial ecosystem.

  • The Prohibitive Core: The policy's most crucial directive is an unambiguous prohibition on using AI to influence judicial outcomes. It states that "AI tools shall not be used to arrive at any findings, reliefs, order or judgement under any circumstances".
  • Permitted Use as an "Assistive Tool": The policy allows for the use of AI, but "solely as an assistive tool" and under strict "human supervision". This includes tasks such as summarizing documents, legal research, and managing administrative functions.
  • Accountability and Oversight: Recognizing the risks, the policy mandates a detailed audit trail for all instances of AI usage and carries a stern warning that any violation of the policy may lead to disciplinary action.

The National Push for AI-Led Efficiency
Contrasting with the Kerala High Court's cautious approach is the strong top-down push from the central government and the Supreme Court to leverage AI to tackle the judiciary's chronic challenges of backlogs and delays.

  • e-Courts Project Phase III: This centrally funded project, with a substantial budget of ₹7210 Crore, is the cornerstone of India's judicial modernization and has specifically earmarked funds for AI integration.
  • Supreme Court's AI Initiatives: The apex court has been at the forefront of adopting AI for specific, non-adjudicative tasks:
    • SUVAS (Supreme Court Vidhik Anuvaad Software): An AI-powered translation tool to convert Supreme Court judgments into various vernacular languages.
    • SUPACE (Supreme Court Portal for Assistance in Court Efficiency): This tool is designed to function as a research assistant for judges, analyzing facts and identifying legal precedents.

Conclusion and Way Forward
India is charting a mature and balanced path towards integrating AI into its judiciary. The emerging framework wisely embraces AI as a powerful assistant for administrative efficiency while firmly rejecting it as a substitute for human reason in the judge's chair. The way forward requires formalizing this nuanced approach into a national framework that enshrines the principles of human-centricity, accountability, transparency, and fairness.

1.2. Taming the Titans: India's Proposed Digital Competition Bill and the Regulation of Big Tech

Introduction
Across the globe, governments are grappling with the immense market power wielded by a handful of large technology companies. India, with its billion-plus digital consumers and a burgeoning startup ecosystem, stands at a critical juncture in this debate. The proposed Draft Digital Competition Bill signals a major policy shift towards proactive, or ex-ante, regulation, aiming to level the playing field in digital markets.

India's Answer: The Draft Digital Competition Bill
India's existing competition law, the Competition Act of 2002, operates on an ex-post basis, intervening only after anti-competitive conduct has been proven. The proposed Digital Competition Bill seeks to remedy this by introducing a proactive, ex-ante framework.

  • Key Provisions: The bill introduces the concept of "Systematically Significant Digital Enterprises" (SSDEs), which are analogous to the EU's "gatekeepers". Once a firm is designated as an SSDE, it will be subject to a pre-defined set of obligations prohibiting specific practices such as self-preferencing, bundling services, and using non-public data of its business users to compete with them.
  • The Debate in India: The bill has sparked a vigorous debate. Proponents, including many Indian startups, argue that such a law is essential to protect them from monopolistic practices. On the other hand, critics contend that the bill is "heavy-handed" and could stifle innovation and discourage foreign investment.

Conclusion and Way Forward
India stands on the verge of a paradigm shift in how it governs its digital economy. The move towards ex-ante regulation is a necessary response to the unique challenges posed by digital markets. However, the success of the Digital Competition Bill will hinge on its design. It must be crafted with precision, targeting specific anti-competitive harms rather than simply penalizing size and success. It must be pro-competition, not anti-tech.

1.3. A Decade of Beti Bachao Beti Padhao: A Critical Appraisal

Introduction
January 2025 marked the tenth anniversary of the 'Beti Bachao Beti Padhao' (BBBP) scheme, one of the flagship initiatives of the Government of India. Launched to address the alarming decline in the Child Sex Ratio (CSR) and promote the value of the girl child, BBBP has evolved from a targeted awareness campaign into a cornerstone of the nation's broader women-led development agenda. A decade on, the scheme presents a mixed report card.

A Decade of Progress: Tangible Achievements

  • Improvement in Sex Ratio at Birth (SRB): This is the scheme's most celebrated achievement. The national SRB has shown a marked improvement, rising from a low of 918 girls per 1,000 boys in 2014-15 to 930 in 2023-24.
  • Boost in Girls' Education: The scheme has contributed to better educational outcomes. The Gross Enrollment Ratio (GER) for girls at the secondary education level increased from 75.51% in 2014-15 to 78% in 2023-24.
  • Improved Health Outcomes: A strong emphasis on healthcare access has led to a dramatic increase in institutional deliveries, which surged from 61% in 2014-15 to over 97.3% by 2023-24.

Persistent Challenges and Critical Gaps

  • Inefficient Fund Utilization: A recurring criticism is the inefficient and imbalanced use of funds. Between 2016 and 2019, a staggering 78.91% of the funds released were spent on media campaigns and advocacy alone.
  • Weak Monitoring and Accountability: The scheme has suffered from poor monitoring mechanisms and a lack of disaggregated data to track progress accurately.
  • Addressing Symptoms, Not Root Causes: Critics argue that the scheme focused heavily on changing mindsets without adequately addressing the deep-rooted socio-economic drivers of gender bias.

Conclusion and Way Forward
After a decade, Beti Bachao Beti Padhao has undeniably succeeded in placing the girl child at the center of India's national discourse. However, the journey towards true gender equality is far from complete. The way forward lies in vigorously pursuing the scheme's new, holistic avatar under Mission Shakti, shifting funds from media campaigns to substantive, on-ground interventions.

Chapter 2: Indian Economy and Environmental Governance (GS Paper 3)

2.1. The Crypto Conundrum: India's Search for a Regulatory Middle Path

Introduction
As of mid-2025, India's stance on cryptocurrencies remains a carefully calibrated exercise in what can be termed "regulated ambiguity." The nation has steered clear of both an outright ban and full-scale legalisation, opting instead for a middle path. This approach involves leveraging existing fiscal and surveillance laws to monitor and tax the burgeoning digital asset sector while awaiting the crystallization of a global regulatory consensus.

The Current Legal and Regulatory Framework

  • Legal Status: Not Tender, but Not Illegal: The landmark 2020 Supreme Court judgment effectively made it legal to own, trade, and invest in cryptocurrencies. However, they are not recognized as legal tender.
  • Taxation as Virtual Digital Assets (VDAs): The Union Budget 2022 introduced a specific and stringent taxation regime. Any income from the transfer of VDAs is taxed at a flat rate of 30%, with a 1% Tax Deducted at Source (TDS) on transactions.
  • Anti-Money Laundering (AML) Oversight: In March 2023, the government brought all VDA transactions under the ambit of the Prevention of Money Laundering Act (PMLA), mandating registration with the Financial Intelligence Unit-India (FIU-IND).

Conclusion and Way Forward
India's policy on crypto-assets is slowly but surely maturing from a reactive and uncertain stance to a more calibrated and globally-aligned one. While the RBI's concerns about financial stability remain a significant factor, the direction of travel is towards comprehensive regulation, not an outright ban. The ultimate challenge will be to tailor the global blueprint from the G20-FSB to India's unique context.

2.2. The Single-Use Plastic Ban: Implementation Reality Check

Introduction
On July 1, 2022, India took a significant step in its fight against pollution by implementing a nationwide ban on specific single-use plastic (SUP) items. However, more than three years later, a reality check reveals a stark and persistent gap between policy intent and on-ground execution.

Systemic Challenges in Implementation

  • Weak and Inconsistent Enforcement: This is the single biggest reason for the ban's failure. ULBs and SPCBs often lack the requisite manpower and resources for sustained enforcement drives.
  • Lack of Affordable and Scalable Alternatives: The market for eco-friendly alternatives remains severely underdeveloped. Alternatives are often more expensive and less durable than their plastic counterparts.
  • Focus on Downstream, Neglect of Upstream: Enforcement actions have disproportionately targeted retailers and street vendors, while manufacturing units often continue their operations without interruption.
  • Gaps in Waste Management Infrastructure: India's waste management ecosystem is ill-equipped to handle the plastic waste crisis, with poor segregation and inadequate recycling facilities.

Conclusion and Way Forward
While the intent behind the single-use plastic ban is commendable, its implementation has been deeply flawed. To transform this policy from a paper tiger into an effective environmental tool, India needs a comprehensive strategy that includes strengthening upstream regulation, building a circular economy for alternatives, overhauling waste management, and sustained public awareness campaigns.

Chapter 3: Science & Technology (GS Paper 3)

3.1. Gaganyaan Mission: Critical Milestones on the Path to India's First Crewed Spaceflight

Introduction
The Gaganyaan mission, India's ambitious endeavor to send astronauts into space, represents a monumental leap for the nation's space program. It is a mission of immense national prestige and technological complexity, aiming to place India in the elite club of nations with indigenous human spaceflight capability.

Mission Overview and Key Components
The core objective of the Gaganyaan project is to launch a crew of three astronauts into a 400 km Low Earth Orbit (LEO) for a mission lasting three days, and to ensure their safe return. Successful completion will make India only the fourth country to independently send humans to space. The first crewed flight is now slated for 2027.

  • Human-Rated LVM3 (HLVM3): The launch vehicle is a human-rated version of ISRO's most powerful rocket, LVM3, reconfigured with robust safety systems, including the Crew Escape System (CES).
  • Orbital Module: This consists of the Crew Module (CM), the habitable space for astronauts, and the Service Module (SM), which houses propulsion and life support systems.

The Axiom-4 Mission: A Strategic Dress Rehearsal
Perhaps the most significant recent development for Gaganyaan was the successful 18-day mission of Indian Air Force Group Captain Shubhanshu Shukla to the ISS in June-July 2025. This flight, part of the commercial Axiom-4 mission, was a calculated strategic investment to gain invaluable real-world data and experience that directly feeds into the Gaganyaan program.

Conclusion and Way Forward
With the successful testing of its critical propulsion systems and a wealth of practical data from the Axiom-4 mission, the Gaganyaan program is now on a much firmer and more confident footing to meet its 2027 target. The mission is a pivotal moment for India, marking its transition into a mature spacefaring nation.

3.2. India's New Space Odyssey: Charting the Course to 2040

Introduction
India's space program is undergoing a profound strategic transformation. ISRO is now charting a new, ambitious course towards deep-space exploration and a sustained human presence in space. This new odyssey is defined by two clear anchor goals set by the government: establishing an indigenous space station by 2035-2040 and landing an Indian astronaut on the Moon by 2040.

Upcoming Flagship Missions: The Building Blocks of Capability

  • NISAR (NASA-ISRO Synthetic Aperture Radar): A landmark Earth-observing satellite mission, jointly developed by NASA and ISRO, it is the world's most expensive satellite of its kind.
  • Chandrayaan-4 (Lunar Sample Return): A highly complex mission planned for 2028 to robotically collect samples from the Moon and return them to Earth.
  • LUPEX (Lunar Polar Exploration Mission): A collaborative mission with Japan's JAXA planned for 2028-29 to explore the Moon's south pole in search of water ice.
  • Interplanetary Missions: ISRO is also continuing its exploration with Shukrayaan (Venus Orbiter Mission) and Mangalyaan-2 (Mars Orbiter Mission 2).

Conclusion and Way Forward
India's space program is at a historic inflection point. It is transitioning from a respected regional leader to a global contender in scientific exploration and human spaceflight. The roadmap to 2040 skillfully balances indigenous development with high-value international collaborations, cementing India's status as a major 21st-century space power.

Chapter 4: International Relations (GS Paper 2)

4.1. The India-EU Trade and Technology Council (TTC): Building a Strategic Digital Alliance

Introduction
In a world increasingly defined by geopolitical competition and the race for technological supremacy, the India-EU Trade and Technology Council (TTC) is emerging as a cornerstone of the strategic partnership between the world's two largest democracies.

The TTC Framework and Objectives
The TTC was launched in 2023, marking a significant upgrade in the bilateral relationship. It is the EU's second such council (after the one with the U.S.) and the very first for India. Its mandate is to deepen cooperation on trade, develop trusted technology, enhance security, and drive the green and digital transitions.

Key Pillars of Cooperation

  • Digital Governance and Trusted AI: India and the EU have committed to deepening digital cooperation in line with their "shared values".
  • Digital Public Infrastructure (DPI): This has emerged as a standout pillar. The EU is looking to learn from India's experience with the "India Stack" (Aadhaar, UPI, etc.).
  • Strategic Technologies and Resilient Supply Chains: A major focus is building resilient supply chains for critical technologies, including semiconductors.
  • Green Technologies: Cooperation includes developing standards for recycling EV batteries and advancing waste-to-hydrogen technologies.

Geopolitical Significance and the Rise of DPI Diplomacy
The TTC is not merely a technocratic body; it is a strategic alignment to counter challenges posed by China and promote a democratic model of technology governance. The intense focus on DPI signals the emergence of the "India Stack" as a powerful new instrument of Indian foreign policy.

Conclusion and Way Forward
The India-EU TTC represents one of the most promising institutional mechanisms in the bilateral relationship. The challenge now is to ensure this powerful engine of cooperation moves from policy-making to implementation, delivering concrete projects that bolster the economic security and technological leadership of both partners.

Chapter 5: Exam-Oriented Special Sections

5.1. Prelims Facts for Quick Revision

  • AI in Judiciary: The Kerala High Court's policy prohibits using AI for final judicial decision-making but allows it as an assistive tool under strict human supervision.
  • SUPACE & SUVAS: SUPACE is an AI tool for legal research assistance for judges, while SUVAS is an AI tool for translating judgments.
  • Digital Competition Bill: India's proposed bill aims to introduce ex-ante regulation for "Systematically Significant Digital Enterprises" (SSDEs), similar to the EU's Digital Markets Act (DMA).
  • India-EU TTC: A strategic platform for cooperation on Digital Public Infrastructure (DPI), semiconductors, and green tech.
  • Beti Bachao Beti Padhao (BBBP): Credited with improving the national Sex Ratio at Birth (SRB) from 918 (2014-15) to 930 (2023-24).
  • Crypto Taxation in India: Income from Virtual Digital Assets (VDAs) is taxed at a flat 30%, with a 1% TDS. Losses cannot be offset.
  • Single-Use Plastic (SUP) Ban: India banned specific SUP items from July 1, 2022. The minimum thickness for plastic carry bags is 120 microns.
  • Gaganyaan Mission: The first crewed flight is targeted for 2027 using the Human-Rated LVM3 (HLVM3) vehicle.
  • NISAR Mission: A joint NASA-ISRO Earth-observing satellite, the world's most expensive of its kind, scheduled for launch in July 2025 from India.
  • India's Space Goals: Aims to establish an indigenous space station (Bharatiya Antariksha Station) by 2035-40 and land an astronaut on the Moon by 2040.

5.2. Mains Practice Question

Question: The recent policy by the Kerala High Court on Artificial Intelligence and the Supreme Court's push for AI-driven tools like SUPACE represent two facets of the same coin. Critically analyze the emerging regulatory framework for AI in the Indian judiciary, highlighting the balance being struck between enhancing efficiency and upholding the core principles of justice. (250 words)

Answer Framework:

  1. Introduction: Briefly introduce the dual approach to AI in the Indian judiciary – the push for efficiency (e-Courts, SUPACE) and cautious restrictions (Kerala HC policy), reflecting a nuanced approach.
  2. Body Paragraph 1 (The Push for Efficiency): Explain the rationale behind using AI to tackle the case backlog. Mention tools like SUPACE (research) and SUVAS (translation) that improve administrative efficiency and access to justice.
  3. Body Paragraph 2 (The Guardrails of Justice): Detail the Kerala High Court's policy, emphasizing its core prohibition on using AI for final judgments. Explain the rationale: preventing algorithmic bias, ensuring accountability, and preserving the human element of discretion.
  4. Body Paragraph 3 (Analysis of the Balance): Argue that these developments are complementary, not contradictory. They create a functional demarcation: AI for assistive tasks, not for the core adjudicative sphere, balancing benefits with integrity.
  5. Conclusion: Conclude that this emerging framework is pragmatic. Suggest a national-level policy is the necessary next step to formalize these principles.

5.3. Daily Current Affairs Quiz

  1. With reference to the 'Policy Regarding Use of Artificial Intelligence Tools in District Judiciary' issued in July 2025, which of the following statements is correct?

    (a) It was issued by the Supreme Court of India for all district courts.

    (b) It allows the use of AI tools like ChatGPT for drafting final judgments to improve efficiency.

    (c) It was issued by the Kerala High Court and prohibits the use of AI for arriving at any judicial finding or order.

    (d) It mandates the compulsory use of AI for legal research in all district courts to reduce backlogs.

    Show Answer & Explanation
    Answer: (c)
    Explanation: The policy was a landmark, first-of-its-kind move by the Kerala High Court for its district judiciary. Its central tenet is the strict prohibition on using AI for decision-making or legal reasoning.
  2. Consider the following pairs regarding India's space missions:
    1. NISAR: A joint lunar exploration mission with Japan.
    2. Chandrayaan-4: A mission to establish an observatory on Venus.
    3. Gaganyaan: A mission to demonstrate human spaceflight capability.
    Which of the pairs given above is/are correctly matched?

    (a) 3 only

    (b) 1 and 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

    Show Answer & Explanation
    Answer: (a)
    Explanation: 1 is incorrect; NISAR is a joint Earth-observing satellite mission with NASA. 2 is incorrect; Chandrayaan-4 is a lunar sample-return mission. 3 is correct; Gaganyaan's objective is to demonstrate human spaceflight capability.
  3. The principle of "same activity, same risk, same regulation" is central to the regulatory framework for crypto-assets proposed by which of the following?

    (a) The Reserve Bank of India (RBI)

    (b) The European Union's Digital Markets Act (DMA)

    (c) The Financial Stability Board (FSB)

    (d) The Supreme Court of India

    Show Answer & Explanation
    Answer: (c)
    Explanation: The Financial Stability Board (FSB), in its global regulatory framework for crypto-assets, advocates for this principle to ensure that crypto activities are regulated based on their economic function, comparable to traditional finance.
  4. The proposed Digital Competition Bill in India introduces the concept of 'Systematically Significant Digital Enterprises' (SSDEs). This ex-ante regulatory approach is most analogous to which of the following?

    (a) The "Very Large Online Platforms" (VLOPs) under the EU's Digital Services Act (DSA).

    (b) The "Gatekeepers" under the EU's Digital Markets Act (DMA).

    (c) The PMLA framework for Virtual Digital Assets (VDAs) in India.

    (d) The 'safe harbor' provisions of the IT Act.

    Show Answer & Explanation
    Answer: (b)
    Explanation: The concept of designating certain large platforms (SSDEs) and subjecting them to pre-defined obligations is directly analogous to the EU's Digital Markets Act (DMA), which designates "Gatekeepers" for similar regulatory oversight.

5.4. Key Terms Flashcards

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