Daily Current Affairs Analysis: 2nd July 2025

July 02, 2025

Daily Current Affairs Analysis: 2nd July 2025

(Presented by Sunlo UPSC Youtube Channel)

(Sources: PIB, The Hindu, The Indian Express and other credible websites).

As a dedicated content architect for civil services examinations, this report has been meticulously crafted to provide a comprehensive, multi-disciplinary analysis of the key current affairs of 2nd July 2025. It is designed to cater to the specific needs of the UPSC Civil Services Examination, covering aspects relevant for the Preliminary Test, Main Examination, and the Personality Test. The structure and content aim to foster a deep, analytical understanding of contemporary issues, linking them to the core concepts of the syllabus.

PART A: POLITY, GOVERNANCE, AND SOCIAL JUSTICE (GS PAPER 2)

1. A DECADE OF DIGITAL INDIA: FROM GOVERNANCE INITIATIVE TO A PEOPLE'S MOVEMENT

Context: On 2nd July 2025, India marked the tenth anniversary of the Digital India mission. Prime Minister Narendra Modi described the journey as a transformation from a government scheme into a "people's movement" that has empowered citizens and positioned India as a global digital leader. Launched in 2015, the initiative aimed to transform India into a digitally empowered society and a knowledge economy, fundamentally altering the landscape of governance, service delivery, and economic participation. This topic is of paramount importance for GS Paper 2 (e-Governance, Aspects of Governance, Citizen Charters) and GS Paper 3 (Indian Economy, IT and Computers, Inclusive Growth).

Vision, Pillars, and Achievements

The Digital India mission was founded on three core vision areas: providing digital infrastructure as a core utility to every citizen, ensuring governance and services are available on demand, and achieving the digital empowerment of all citizens. This vision was operationalized through nine distinct pillars, including Broadband Highways, Universal Access to Mobile Connectivity, a Public Internet Access Programme, and e-Kranti for the electronic delivery of services.

The progress over the last decade has been substantial, moving beyond initial skepticism to tangible results that are visible in the daily lives of citizens. The table below encapsulates some of the key quantitative achievements.

Metric	Status in 2014-15	Status in 2024-25
Internet Connections	25.15 crore	96.96 crore
BharatNet Connectivity	Negligible	Over 2.18 lakh Gram Panchayats connected
Cost of Mobile Data	Approx. ₹269 / GB	Approx. ₹10 / GB
Digital Payments (UPI)	Not Launched	Over 100 billion transactions annually (49% of global share)
Direct Benefit Transfer (DBT)	Nascent Stage	Over ₹44 lakh crore transferred
Savings via DBT	Minimal	Approx. ₹3.48 lakh crore saved by eliminating middlemen
DigiLocker Users	Not Launched	Over 53.92 crore

Beyond these numbers, citizen-centric platforms have become ubiquitous. The Unified Mobile Application for New-age Governance (UMANG) app now offers over 2,300 services, while the Ayushman Bharat Health Account (ABHA) ecosystem has created over 78 crore accounts, forming the world's largest digital health initiative. Furthermore, the government is leveraging technology for targeted welfare, such as using the Poshan Tracker to monitor and improve women and child welfare outcomes. Economically, the digital economy's contribution to India's GDP has risen to 11.74% and is projected to reach 13.42% by 2024–25, underscoring its growing significance.

Analysis and Deeper Implications

The narrative of Digital India has evolved significantly. Initially, its success was defined by the Jan Dhan-Aadhaar-Mobile (JAM) trinity, a framework primarily aimed at plugging leaks in subsidy delivery and advancing financial inclusion. A decade later, the architecture has matured into a comprehensive, multi-layered Digital Public Infrastructure (DPI) stack. Aadhaar serves as the foundational identity layer, UPI as the seamless payments layer, and a host of new platforms like the Open Network for Digital Commerce (ONDC), DigiLocker, and ABHA are creating interoperable data layers for commerce, credentials, and health, respectively. This structural evolution represents a paradigm shift in governance.

This domestic success is now being leveraged as a potent instrument of foreign policy. The government's stated goal of moving from "India-first to India-for-the-world" and promoting its DPI models in the Global South is a strategic geopolitical move. By offering an open, democratic, and interoperable digital framework, India is presenting a powerful alternative to China's more state-controlled, surveillance-oriented Digital Silk Road.

However, the celebratory narrative of empowerment coexists with the persistent challenge of a deep digital divide. While internet penetration has soared, it remains uneven, with rural areas (37% penetration in 2023) and marginalized groups, particularly women and the poor, lagging significantly. This creates a critical paradox: the very digital tools designed for inclusion can become barriers to access for the digitally illiterate, potentially exacerbating existing inequalities. The success of 'Digital India' is therefore intrinsically tied to the success of parallel initiatives like the 'Accessible India Campaign' and 'Skill India Mission'.

Future Roadmap and Conclusion

Looking ahead, the vision for the next decade is to transition from "digital governance to global digital leadership". This involves a strong focus on strategic and emerging technologies, spearheaded by the IndiaAI Mission and the India Semiconductor Mission, to build domestic capacity and reduce import dependency. The journey ahead must prioritize bridging the digital divide through targeted infrastructure expansion and digital literacy programs, strengthening cybersecurity frameworks to protect citizens' data, and ensuring that the digital revolution translates into equitable and sustainable growth for all, truly embodying the spirit of a 'Viksit Bharat' by 2047.

2. INDIA'S NEW CRIMINAL JURISPRUDENCE: ONE YEAR OF THE BHARATIYA NYAYA SANHITA AND ITS SISTER LAWS

Context: On 2nd July 2025, marking the first anniversary of the implementation of India's new criminal laws—the Bharatiya Nyaya Sanhita (BNS), the Bharatiya Nagarik Suraksha Sanhita (BNSS), and the Bharatiya Sakshya Adhiniyam (BSA)—the Union Home Minister hailed them as the "biggest reform since Independence". These laws, which replaced the colonial-era Indian Penal Code, Code of Criminal Procedure, and the Indian Evidence Act, are intended to overhaul the country's criminal justice system, making it more citizen-centric, transparent, and efficient. This is a landmark development for GS Paper 2 (Indian Constitution, Parliament and State Legislatures, Structure and Functioning of the Judiciary).

Core Philosophy and Key Reforms

The fundamental objective of these new laws is to shift the jurisprudential focus from a punitive, state-centric model to one centered on delivering justice to the citizen. The stated aim is to replace a legal framework designed to perpetuate British rule with one that protects the life, liberty, and constitutional rights of Indians.

This philosophical shift is being driven by a combination of procedural, substantive, and technological reforms. The table below provides a comparative overview of some of the most significant changes.

Feature	Old Law (IPC/CrPC/IEA)	New Law (BNS/BNSS/BSA)
Focus	Primarily punitive, protecting the state.	Justice-oriented, protecting the citizen.
Sedition	Section 124A of IPC criminalised sedition.	Repealed. Replaced with provisions against acts endangering sovereignty, unity, and integrity of India.
Terrorism	Defined under special laws like UAPA.	Defined for the first time in the general criminal code (BNS).
Investigation Timeline	No strict, mandatory timeline.	Investigation to be completed within 90 days, with strict timelines for all stages.
Electronic Evidence	Admissibility was subject to interpretation and procedural hurdles.	Given formal legal recognition with detailed provisions for admissibility (BSA).
Search and Seizure	Primarily manual documentation.	Mandatory videography of search and seizure procedures.
Forensic Investigation	Discretionary use by police.	Mandatory for crimes with punishment of 7 years or more.
Punishment for Minor Offences	Primarily imprisonment or fines.	Introduction of community service as a form of punishment.

Analysis and Deeper Implications

The operational success of these new criminal laws is deeply intertwined with the digital infrastructure established under the Digital India mission. Provisions such as mandatory videography of procedures, the admissibility of electronic evidence, and the introduction of e-FIRs and e-Summons are not standalone reforms. Their efficacy depends entirely on the availability of robust digital connectivity, secure data storage, digital literacy among police personnel, and strong cybersecurity protocols at the grassroots level. This creates a powerful synergy, where the modernization of the justice system is both a driver and a beneficiary of the nation's broader digital transformation.

A central pillar of this reform is the attempt to dismantle the notorious "process is the punishment" culture that plagued the old system, characterized by indefinite delays. The introduction of strict, legally mandated timelines—such as completing investigations within 90 days and aiming to conclude the entire judicial process within three years—represents a fundamental shift in accountability. This places the onus squarely on the state machinery—police, prosecution, and judiciary—to adhere to deadlines, thereby aiming to restore public faith in the justice delivery mechanism, a sentiment echoed by the Home Minister.

However, the ambition of these reforms confronts the ground reality of institutional capacity. While the government has undertaken a massive training exercise for over 15 lakh police personnel and thousands of judicial officers, the systemic challenges of understaffed police forces, an overburdened judiciary, and inadequate forensic infrastructure remain formidable. Mandating new, technology-intensive procedures without a corresponding and sustained investment in manpower, funding, and infrastructure risks creating new bottlenecks or encouraging tokenistic compliance. A critical evaluation must question whether the legal 'hardware' is being adequately supported by the institutional 'software' required for its effective functioning.

Implementation and Conclusion

As of July 2025, the government reports significant progress, with 23 states and Union Territories having completed 100% capacity building and over 35 lakh FIRs being filed under the new codes since their implementation in July 2024. The new laws have also introduced dedicated chapters on crimes against women and children and, for the first time, have provided a clear legal definition for terrorism and organised crime within the general criminal code. The ultimate success of this historic legal overhaul will be measured not just by the letter of the law, but by its ability to deliver swift, accessible, and fair justice to the last person in the line.

3. THE BIHAR ELECTORAL ROLL REVISION: A FLASHPOINT FOR FEDERALISM, CITIZENSHIP, AND ELECTORAL INTEGRITY

Context: The Election Commission of India (ECI) has initiated a "Special Intensive Revision" (SIR) of electoral rolls in Bihar, just months ahead of the state's assembly elections scheduled for late 2025. This move has ignited a major political controversy, with opposition parties raising concerns about potential mass disenfranchisement and accusing the ECI of acting under political pressure. The issue touches upon core themes of GS Paper 2, including the powers and functions of the ECI, federalism, and citizenship.

The ECI's Rationale and Process

The ECI has defended the exercise as a constitutional necessity to create a clean and error-free electoral roll by weeding out ineligible voters, such as foreign illegal immigrants from neighbouring countries. The poll body has stated that the SIR is being conducted with the full participation of all political parties to ensure transparency.

A key clarification issued by the ECI is that the 2003 electoral roll will be used as the base document. This means that nearly 4.96 crore voters (approximately 60% of the electorate) whose names were on that list will not need to submit any new documents; they only need to verify their existing details. The documentation requirements primarily apply to those registered after 2003 and new voters. For those born after July 1, 1987, proof of their parents' date and place of birth may be required, a point that has become a major source of contention.

Opposition's Concerns and Allegations

The opposition, including the RJD, Congress, CPI(ML)L, and AIMIM, has vehemently opposed the SIR on several grounds:

Timing and Haste: Conducting such a massive, door-to-door verification exercise within a short, one-month timeframe just before a high-stakes election is seen as impractical and suspicious.
Disenfranchisement: There are strong fears that the process will lead to the large-scale exclusion of genuine citizens, particularly the poor, Dalits, Muslims, and migrant laborers who may struggle to produce the required legacy documents on short notice.
"Backdoor NRC": Several opposition leaders have alleged that the SIR is a "devious" attempt to implement a National Register of Citizens (NRC)-like exercise through the back door, a politically sensitive issue.
Questioning ECI's Credibility: The move has led to accusations that the ECI is losing its credibility and acting at the behest of the ruling party at the Centre.

Analysis and Deeper Implications

This controversy highlights the delicate balance the ECI must strike between its mandate to ensure electoral purity and the fundamental right of every eligible citizen to vote. While the objective of removing ineligible voters from the rolls is legitimate, the methodology and timing of the exercise have raised valid concerns about potential exclusion errors. The burden of proof being placed on citizens, especially those from marginalized backgrounds, can transform a procedural requirement into a significant barrier to exercising their franchise.

The issue has also become a significant federal friction point. The opposition in Bihar perceives the ECI's actions as an overreach influenced by the central government, undermining the level playing field essential for a free and fair election. This episode underscores the immense pressure on the ECI to not only be impartial but to be seen as impartial, especially in a politically charged environment.

Finally, the debate over the Bihar SIR brings the complex and often contentious issue of citizenship documentation back to the forefront. The requirement for parental documents echoes the debates surrounding the NRC in Assam and the Citizenship (Amendment) Act. It reveals how administrative procedures related to voter registration can become deeply entangled with larger questions of identity, belonging, and citizenship, turning a seemingly routine exercise into a source of widespread anxiety and political conflict.

4. ADDRESSING SYSTEMIC GAPS: THE ENDURING CHALLENGE OF VACANT RESERVED FACULTY POSTS

Context: Despite constitutional mandates and decades of affirmative action policies, a significant number of faculty positions reserved for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) in India's premier higher education institutions remain unfilled. An editorial analysis on 2nd July 2025, brings this persistent issue into focus, highlighting the systemic barriers that impede the goal of social justice in academia. This topic is central to GS Paper 2 (Social Justice, Mechanisms and Laws for Protection of Vulnerable Sections, Role of Education).

The Scale of the Problem

The shortfall in representation is not marginal but alarming.

Data from April 2021 revealed that across 45 central universities, there were 2,389 vacant SC faculty positions, 1,199 for STs, and 4,251 for OBCs.
A 2023 University Grants Commission (UGC) report corroborated this, indicating that nearly 30% of all reserved teaching posts remain vacant. The problem is particularly acute at senior levels, such as Associate Professor and Professor, creating a glass ceiling that hinders career progression for academics from marginalized communities.

Root Causes of Underrepresentation

The failure to fill these posts is not due to a lack of qualified candidates but stems from deeper, structural issues within the academic ecosystem:

Institutional Autonomy and Accountability Gaps: Central universities and Institutes of National Importance enjoy significant autonomy. However, this is often coupled with weak enforcement of UGC guidelines on reservation. A lack of stringent oversight allows institutions to circumvent constitutional obligations without facing penalties.
The 13-Point Roster System: The shift to a department-based roster system (the 13-point roster) from the earlier university-wide 200-point system has been identified as a major regressive step. By treating each department as a separate unit for calculating reservations, this system makes it statistically difficult for smaller departments to generate reserved posts, disproportionately affecting SC and ST categories.
Discretionary Rejection and Institutional Bias: A pervasive issue is the arbitrary rejection of qualified candidates from reserved categories under the ambiguous ground of being "not found suitable." A 2022 study highlighted that over 60% of vacancies in reserved categories were attributed to such subjective assessments, fostering a culture of exclusion and disillusionment.

Analysis and Proposed Way Forward

The problem of vacant reserved posts illustrates a classic case of the gap between legislative intent and administrative action. This is not merely an issue of employment numbers; it has profound implications for social mobility, equity, and the nature of knowledge creation. A diverse faculty enriches the academic environment, brings varied perspectives, and provides crucial role models.

Addressing this requires a multi-pronged approach:

Strengthened Enforcement: The UGC must enforce its guidelines rigorously through regular, transparent compliance audits, with meaningful penalties for non-compliant institutions.
Systemic Reforms: The 13-point roster system needs to be revisited and potentially reformed to ensure it aligns with the constitutional principle of adequate representation.
Fair and Transparent Recruitment: Mandating diversity in selection committees and establishing clear, objective evaluation criteria can mitigate the impact of subjective biases.

Ultimately, bridging this gap requires unwavering political will and an ethical commitment from academic leaders to embed social justice as a core, non-negotiable value in the functioning of India's higher education system.

5. RENAMING NIPCCD: A SYMBOLIC NOD TO WOMEN-CENTRIC DEVELOPMENT AND SOCIAL REFORM

Context: The Union Government announced on 2nd July 2025, that the National Institute of Public Cooperation and Child Development (NIPCCD) has been officially renamed as the Savitribai Phule National Institute of Women and Child Development. This move, accompanied by the announcement of a new regional center, signals a renewed focus on women-centric development and honors a key figure in India's history of social reform. This development is relevant for GS Paper 1 (Role of Women, Social Reformers) and GS Paper 2 (Welfare Schemes, Role of Institutions).

Significance of the Renaming

The act of renaming the institute is deeply symbolic.

Honoring a Legacy: It serves as a tribute to Savitribai Phule, a pioneering 19th-century social reformer, educator, and a staunch advocate for women's rights and education in India. By invoking her name, the government aims to align the institute's mission with her legacy of challenging caste and gender barriers.
Policy Messaging: The Women and Child Development Minister stated that the change reflects the institute's evolving role and is a "reaffirmation of our commitment to women and child-centric development". It signals a deliberate shift towards a more holistic and women-focused approach in the ministry's programs.

Institutional Strengthening and Decentralization

The renaming was coupled with a tangible step towards strengthening the institute's outreach. A new Regional Centre is set to be inaugurated in Ranchi, Jharkhand.

Addressing Regional Needs: This center will cater specifically to the Eastern region, covering Jharkhand, Bihar, Odisha, and West Bengal. It will address the training and research needs for the ministry's flagship programs—Mission Shakti, Mission Vatsalya, and Saksham Anganwadi & Poshan 2.0.
Decentralizing Capacity Building: Previously, the training needs for this region, which has over seven lakh frontline functionaries, were met by centers in Guwahati and Lucknow, posing significant logistical challenges. The Ranchi center aims to provide better access, enable customized local interventions, and ensure more effective last-mile delivery of services.

This development demonstrates how symbolic gestures, when combined with concrete administrative actions, can be used to reinforce policy direction. The renaming of NIPCCD connects the contemporary governance goals of women's empowerment with the historical legacy of social reform, while the new regional center addresses the practical need for decentralized capacity building.

PART B: INTERNATIONAL RELATIONS (GS PAPER 2)

6. INDIA-U.S. STRATEGIC TRADE DIALOGUE: NAVIGATING TARIFFS AND RED LINES

Context: India and the United States are in the final, high-stakes phase of negotiations for an interim trade agreement, with a critical deadline of July 9, 2025, looming large. The talks are aimed at preventing the automatic reinstatement of suspended 26% reciprocal tariffs imposed by the Trump administration, a move that could significantly impact bilateral trade. This issue is a classic case study for GS Paper 2 (Bilateral Relations) and GS Paper 3 (Foreign Trade, Indian Economy).

Negotiating Positions and Sticking Points

The negotiations reveal a complex interplay of demands and non-negotiable "red lines" from both sides.

United States' Demands: The U.S., under President Donald Trump, is seeking greater market access to "go in and compete" in the Indian market. Key demands include:
- Agricultural Market Access: Significant reduction in tariffs on American agricultural products like apples, tree nuts, and, most contentiously, Genetically Modified (GM) crops and cattle feed.
- Addressing Non-Tariff Barriers: The U.S. wants India to ease its Quality Control Orders, which it views as barriers to trade, and relax regulations for American retail giants like Amazon and Walmart.
India's Stance and "Red Lines": India has adopted a firm negotiating posture, emphasizing that there will be "no compromise on the interests of Indian farmers". India's key positions are:
- Protection of Agriculture: The politically sensitive nature of India's agricultural sector, dominated by small-scale farmers, makes concessions on GM crops and the opening of the dairy sector non-negotiable "red lines".
- Seeking Preferential Access: In return for any concessions, India is demanding preferential access and lower tariffs for its labor-intensive exports, including textiles, garments, gems and jewellery, and certain agricultural products like shrimp and bananas.

Analysis and Geopolitical Undercurrents

The intense focus on agriculture reveals a core tenet of India's approach to international trade: the primacy of domestic political economy in shaping foreign economic policy. The firm "red lines" on dairy and GM crops are a clear demonstration of India exercising its 'strategic autonomy' in trade negotiations.

These negotiations are not occurring in a strategic vacuum. The urgency of the July 9 deadline is a direct result of the transactional, tariff-driven approach favored by President Trump. While the U.S. views India as a crucial Indo-Pacific partner to counterbalance China, the trade relationship is being framed through a lens of immediate, reciprocal concessions. This forces both nations into a high-stakes balancing act between their geostrategic partnership and their geo-economic interests.

The likely outcome, as suggested by experts, is not a comprehensive free trade agreement but a limited "mini-deal" or an "interim" pact. This reflects a broader global trend where, in the face of a weakened WTO and rising protectionism, major economies are shifting towards more agile, phased bilateral agreements.

7. THE SHIFTING SANDS OF BRICS: IMPLICATIONS OF XI JINPING'S ABSENCE FROM THE 2025 SUMMIT

Context: In a significant diplomatic development, Chinese President Xi Jinping is confirmed to be skipping the 2025 BRICS Summit in Rio de Janeiro, marking his first-ever absence from the annual gathering since taking office twelve years ago. China will instead be represented by Premier Li Qiang. This unprecedented move, coupled with the absence of Russian President Vladimir Putin, has sparked global speculation and raises profound questions about the cohesion, direction, and future of the BRICS grouping. This is a crucial topic for GS Paper 2 (Important International Institutions, Bilateral and Global Groupings).

Reasons and Repercussions

While the official reason cited by Beijing is a "scheduling conflict," diplomatic circles are rife with speculation about the true motives.

Potential Triggers: Reports suggest Chinese displeasure over Brazil's reluctance to endorse the Belt and Road Initiative (BRI) and its decision to host Indian Prime Minister Modi for a state dinner, which may be perceived as a slight by Beijing.
Strategic Calculations: Other analyses suggest the move could be a strategic pivot, allowing China to prioritize pressing domestic economic issues or focus on its role as a potential mediator in global conflicts like the one in Ukraine.

The joint absence of the bloc's two most powerful and authoritarian leaders, Xi and Putin (who is constrained by an ICC arrest warrant), has significant implications:

Weakened Unity: It symbolically weakens the summit and casts doubt on the bloc's ability to project a unified front on the global stage.
Stalled Initiatives: Key BRICS projects, particularly the push for de-dollarization and the potential creation of a common currency, are likely to be delayed or lose momentum.

Analysis and Evolving Dynamics

President Xi's absence serves as a critical stress test for the institutional maturity of BRICS. The outcomes of the Rio summit will be a key indicator of whether the grouping has transcended the personal chemistry of its leaders to become a self-sustaining platform with bodies like the New Development Bank (NDB).

The development also throws the inherent contradictions within the expanded BRICS into sharp relief. The bloc, projected as a unified voice of the Global South, is internally fractured by bilateral tensions (e.g., India-China), divergent political systems (democracies versus autocracies), and varying degrees of alignment with the West.

This leadership vacuum, however, creates a strategic opportunity for other members, particularly India and Brazil. With the two most assertive leaders absent, the democratic core of BRICS (India, Brazil, South Africa) has a chance to steer the agenda. This could lead to a greater focus on issues of common interest for developing nations—such as climate finance, sustainable development, and the promotion of Digital Public Goods—rather than a purely anti-Western or Sino-centric narrative. Prime Minister Modi can leverage his growing partnership with Brazil's President Lula da Silva to champion a vision of "inclusive multilateralism" from within the BRICS platform.

8. INDIA'S 'GLOBAL SOUTH' DIPLOMACY: PM MODI'S VISIT TO GHANA

Context: Prime Minister Narendra Modi embarked on a historic five-nation tour on 2nd July 2025, with the first leg being a two-day bilateral visit to Ghana. This marks the first visit by an Indian Prime Minister to the West African nation in over three decades and is a significant step in reinforcing India's diplomatic outreach to the Global South and the African continent. This visit is highly relevant for GS Paper 2 (Bilateral Relations, India and its Neighborhood, Policies of Developed and Developing Countries on India's Interests).

Agenda and Areas of Cooperation

The visit is poised to recalibrate and strengthen a bilateral relationship that spans over seven decades, rooted in a shared history as founding members of the Non-Aligned Movement (NAM). The agenda is comprehensive:

Economic and Trade Ties: Bilateral trade stood at approximately $3 billion in 2023-24. India is a key source of pharmaceuticals, machinery, and automobiles for Ghana, while it imports gold and cocoa.
Development Partnership: India has been a crucial development partner, providing nearly $450 million in concessional financing. Landmark projects like the Jubilee House (Ghana's presidential palace) and the Tema-Mpakadan railway project stand as symbols of this partnership.
Health and Capacity Building: Ghana has been a beneficiary of India's 'Vaccine Maitri' initiative and the Pan-African e-Network. Over 1,100 Ghanaian professionals have been trained under the Indian Technical and Economic Cooperation (ITEC) program.
Strategic Cooperation: Discussions are expected to cover defence collaboration, energy security, and cooperation on securing critical minerals, a sector of growing importance for India's 21st-century technological needs.

Significance and Broader Implications

PM Modi's visit to Ghana is a clear manifestation of India's foreign policy priority of strengthening its engagement with the Global South. By positioning itself as a reliable development partner that offers assistance without the conditionalities often associated with traditional donors, India is carving out a unique space for itself on the continent.

The focus on critical minerals is of immense strategic significance. As the world transitions towards green energy and high-tech manufacturing, demand for minerals like lithium and cobalt is soaring. By proactively seeking partnerships through bodies like KABIL (Khanij Bidesh India Ltd.), India is working to secure its supply chains and reduce its dependence on a few countries, notably China. This links India's foreign policy directly to its long-term economic security and 'Aatmanirbhar Bharat' goals.

Furthermore, the visit reinforces India's model of partnership, which emphasizes capacity building and digital transformation through initiatives like ITEC and the sharing of India's Digital Public Infrastructure (DPI).

9. QUIET DIPLOMACY IN A TENSE NEIGHBOURHOOD: SAUDI ARABIA'S ROLE IN THE INDIA-PAKISTAN CEASEFIRE

Context: On 2nd July 2025, Pakistani Prime Minister Shehbaz Sharif publicly praised Saudi Arabia for its role in facilitating a "ceasefire understanding" between Pakistan and India following a brief but intense military clash in May 2025. This statement sheds light on the crucial but often unseen role of third-party mediators in managing conflicts in South Asia. This event is relevant for GS Paper 2 (India and its Neighborhood-Relations, Effect of Policies of other countries on India's interests).

Background of the Conflict and Mediation

In May 2025, India and Pakistan, both nuclear-armed states, engaged in a dangerous exchange of missile, drone, and artillery attacks. While the United States was instrumental in securing a ceasefire, Prime Minister Sharif's comments confirm that Gulf nations, particularly Saudi Arabia, engaged in "quiet diplomacy" to de-escalate the situation. This is not an isolated instance, as Gulf countries like the UAE have been increasingly active in mediating between India and Pakistan.

Analysis of Saudi Arabia's Role and Motivations

Saudi Arabia's growing involvement in South Asian security matters is driven by a confluence of strategic and economic interests:

Economic Interdependence: The Kingdom has significant economic stakes in regional stability. It is a major energy supplier to India and hosts over 2.5 million Pakistani expatriates. A full-blown conflict would disrupt trade routes and threaten energy supplies.
Shifting Foreign Policy: Under its 'Vision 2030', Saudi Arabia is pursuing a more assertive and pragmatic foreign policy, positioning itself as a major global power and a stabilizing force in its broader neighborhood.
Balancing Relationships: Riyadh maintains strong strategic partnerships with both Islamabad and New Delhi. By acting as a mediator, Saudi Arabia can maintain its influence with both countries and prevent being forced to choose sides in a conflict.

For India, the involvement of third-party mediators like Saudi Arabia presents both opportunities and challenges. While such interventions can be crucial in de-escalating immediate crises, India has historically maintained a firm stance against the internationalization of the Kashmir issue and prefers bilateral mechanisms. Therefore, New Delhi's engagement with such mediation efforts is likely to be cautious and pragmatic, focused on crisis management rather than fundamental conflict resolution. This episode underscores the evolving multipolar dynamics in Asia.

PART C: ECONOMY AND INFRASTRUCTURE (GS PAPER 3)

10. DECODING GST REVENUE TRENDS: ANALYSING THE JUNE 2025 FIGURES AND THE 8-YEAR TRAJECTORY

Context: As India's Goods and Services Tax (GST) regime completed its eighth year on 1st July 2025, the revenue figures for June 2025 were released. The gross GST collection for June stood at approximately ₹1.85 lakh crore, marking a 6.2% year-on-year increase but a moderation from recent highs. These figures provide a crucial snapshot of the health of the Indian economy. This topic is fundamental to GS Paper 3 (Indian Economy, Government Budgeting, Mobilization of Resources).

June 2025 GST Collections: A Detailed Look

Gross Revenue: The gross GST collection for June 2025 was ₹1.84 - ₹1.85 lakh crore.
Breakdown: This comprised Central GST (CGST) of ₹34,558 crore, State GST (SGST) of ₹43,268 crore, Integrated GST (IGST) of ₹93,280 crore, and Cess of ₹13,491 crore.
Year-on-Year Growth: The collection represents a 6.2% growth over the revenues in June 2024.
Net Revenue: After accounting for refunds, the net GST revenue for June 2025 stood at ₹1.59 lakh crore, a 3.3% annual growth.
Sequential Moderation: The June collection is a four-month low, dipping below the ₹2 lakh crore mark achieved in April (₹2.37 lakh crore) and May (₹2.01 lakh crore) 2025.

Analysis of the Trends

The moderation in GST collections for June, which reflects economic activity in May, is being interpreted by experts as a potential sign of softening domestic demand and cautious consumer spending. The muted growth in domestic transactions (4.6%) compared to the healthier growth in GST on imports (11.4%) supports this view.

However, looking at the broader picture, the GST system shows remarkable resilience and growth.

Eight-Year Trajectory: Since its implementation in 2017, GST has reshaped India's economic landscape. Gross GST collections have doubled in five years, from ₹11.37 lakh crore in FY21 to a record ₹22.08 lakh crore in FY25. The number of registered taxpayers has also surged from 60 lakh to over 1.51 crore, indicating a significant formalization of the economy.
Improved Compliance: The consistent growth in revenues points to a maturing, technology-driven tax ecosystem with better compliance and reduced leakages. A recent survey found that 85% of industries have a positive perception of GST, citing simplified processes and a seamless flow of Input Tax Credit (ITC).

Conclusion and Future Outlook

The June 2025 GST figures present a nuanced picture of an economy navigating short-term headwinds while maintaining long-term structural strength. The moderation will be a crucial data point for the GST Council in its upcoming meetings, where discussions on rate rationalization, including the potential removal of the 12% slab, are expected. The eight-year journey of GST demonstrates its success in creating a common national market and strengthening India's fiscal architecture.

11. CATALYSING JOB CREATION: THE EMPLOYMENT-LINKED INCENTIVE (ELI) SCHEME

Context: The Union Cabinet, on 1st July 2025, approved the Employment-Linked Incentive (ELI) Scheme, a major initiative with an outlay of nearly ₹1 lakh crore, aimed at boosting formal job creation, enhancing employability, and extending social security coverage. Announced in the Union Budget 2024-25, the scheme is designed to incentivize both first-time employees and employers, with a special focus on the manufacturing sector. This is a critical topic for GS Paper 3 (Indian Economy, Employment) and GS Paper 2 (Welfare Schemes).

Key Features of the ELI Scheme

The ELI scheme is a two-pronged strategy with an ambitious target of supporting the creation of over 3.5 crore jobs over a two-year period.

Part A: Incentive to First-Time Employees

Objective: To encourage youth to join the formal workforce and promote financial literacy and savings.
Beneficiaries: Targets approximately 1.92 crore first-time employees registered with the Employees' Provident Fund Organisation (EPFO) with salaries up to ₹1 lakh per month.
Incentive: Eligible employees will receive a cash incentive equivalent to one month's EPF wage (up to ₹15,000), disbursed in two installments via Direct Benefit Transfer (DBT). The second installment is linked to the completion of a mandatory financial literacy program.

Part B: Support to Employers

Objective: To incentivize establishments to generate additional formal employment.
Beneficiaries: EPFO-registered establishments across all sectors, with a special focus on manufacturing.
Incentive: The government will provide an incentive of up to ₹3,000 per month for each additional employee hired for two years. For the manufacturing sector, this incentive is extended for a total of four years to provide a greater push.
Condition: To be eligible, establishments must demonstrate a net increase in their workforce.

Analysis and Expected Impact

The ELI scheme represents a significant fiscal intervention aimed at tackling the structural challenge of employment generation. By linking incentives directly to the creation of formal, EPFO-registered jobs, the government is pursuing the twin goals of boosting employment and accelerating the formalization of the economy.

The scheme's design reflects lessons learned from previous initiatives. The mandatory financial literacy component is an innovative addition. The special, extended support for the manufacturing sector is a clear policy signal aimed at bolstering the 'Make in India' initiative. The true measure of its impact will be its ability to generate a net increase in employment, rather than simply subsidizing jobs that would have been created anyway.

12. FOSTERING A KNOWLEDGE ECONOMY: THE ₹1 LAKH CRORE R&D INCENTIVE SCHEME

Context: In a transformative move to position India as a global research and innovation hub, the Union Cabinet approved the Research, Development, and Innovation (RDI) Scheme on 1st July 2025. With a massive corpus of ₹1 lakh crore, the scheme is designed to provide long-term, low-cost financing to spur private sector investment in R&D, particularly in strategic and sunrise sectors. This policy is central to GS Paper 3 (Science and Technology, Indigenization of Technology, Investment Models) and the vision of 'Viksit Bharat @ 2047'.

Objectives and Key Features of the RDI Scheme

The RDI scheme aims to overcome the critical challenge of inadequate private sector funding for research in India. Its core objective is to provide growth and risk capital to facilitate innovation.

Financial Mechanism: The scheme will provide long-term financing or refinancing with extended tenors at low or nil interest rates to private sector R&D projects.
Focus Areas: It will encourage private sector R&D in:
- Sunrise Domains: Emerging sectors with high growth potential.
- Strategic Sectors: Areas relevant for economic security and national self-reliance.
- High-TRL Projects: Financing transformative projects at higher Technology Readiness Levels (TRL), moving them from lab to market.
- Deep-Tech: Facilitating the creation of a Deep-Tech Fund of Funds to support innovation and entrepreneurship.

Governance and Implementation Structure

Strategic Direction: The Governing Board of the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide the overarching strategic vision.
Nodal Agency: The Department of Science and Technology (DST) will be the nodal department.
Funding Mechanism: A two-tiered funding mechanism will be established. A Special Purpose Fund (SPF) will allocate funds, primarily as long-term concessional loans, to various second-level fund managers (e.g., financial institutions, venture capital funds), who will then fund specific R&D projects.

Analysis and Significance for 'Viksit Bharat'

The RDI scheme is a landmark policy intervention that addresses a long-standing weakness in India's innovation ecosystem: low R&D expenditure by the private sector. India's Gross Expenditure on R&D (GERD) has stagnated at around 0.7% of GDP for years. This scheme is a direct attempt to reverse this trend by de-risking private investment in innovation.

By providing long-term, patient capital at concessional rates, the government is essentially acting as a venture capitalist for the nation. The focus on high-TRL projects is particularly crucial, as it aims to bridge the "valley of death" where many promising research projects fail due to a lack of funding for commercialization. This aligns with other national missions like the IndiaAI Mission and the India Semiconductor Mission, creating a cohesive policy environment for building strategic technological capabilities.

PART D: SECURITY, ENVIRONMENT, AND SCIENCE & TECHNOLOGY (GS PAPER 3)

13. A MILESTONE IN MARITIME SELF-RELIANCE: THE COMMISSIONING OF INS TAMAL

Context: The Indian Navy commissioned INS Tamal (F71), a new multi-role stealth frigate, in a ceremony held in Kaliningrad, Russia, on 1st July 2025. This event marks a significant milestone, as INS Tamal is the last major foreign-built warship to be inducted into the Indian Navy. Its commissioning underscores the Navy's transition towards greater self-reliance and indigenization, in line with the 'Aatmanirbhar Bharat' initiative. This is a key topic for GS Paper 3 (Defence Technology, Indigenization of Technology, Security Challenges).

Technical Specifications and Capabilities

INS Tamal is the eighth ship of the Russian-origin Krivak/Talwar-class frigates and the second ship of the upgraded Tushil-class (Project 1135.6). The 125-meter-long, 3,900-tonne warship is a formidable platform designed for blue-water operations.

Stealth Design: The frigate incorporates an enhanced stealth hull and radar-evading design.
Propulsion: It is powered by a powerful COGAG (Combined Gas and Gas) propulsion system, enabling speeds in excess of 30 knots.
Weapon Systems: It integrates both Indian and Russian systems:
- Primary Strike: Eight vertically launched BrahMos supersonic cruise missiles.
- Air Defence: A Shtil-1 vertical launch surface-to-air missile system, a 100mm main naval gun, and two AK-630 Close-In Weapon Systems (CIWS).
- Anti-Submarine Warfare (ASW): Heavyweight torpedo tubes and RBU-6000 anti-submarine rocket launchers.
Sensors and Electronics: It is equipped with a state-of-the-art sensor suite, including the indigenously developed Humsa-NG sonar system.
Aviation Facilities: The ship can embark Kamov-28 (ASW) and Kamov-31 (Airborne Early Warning) helicopters.

Significance for Indian Navy's Modernization and Indigenization

The commissioning of INS Tamal is symbolic of a crucial pivot in India's naval procurement strategy. While the ship itself was built in Russia, it marks the end of an era of relying on foreign shipyards for major combatants. The follow-on ships of this class are being constructed at Goa Shipyard Limited with Russian design assistance and transfer of technology.

The vessel itself features a significant level of indigenous content (26%), with critical systems supplied by Indian firms like BrahMos Aerospace, Bharat Electronics Ltd (BEL), and Tata's Nova Systems. This successful integration is a testament to the growing maturity of India's defence-industrial ecosystem. INS Tamal will operate under the Western Naval Command, the 'Sword Arm' of the Indian Navy, significantly enhancing the Navy's reach and combat readiness in the Indian Ocean Region.

14. THE HYDERABAD PHARMA BLAST: A CASE STUDY IN INDUSTRIAL SAFETY AND REGULATION

Context: A catastrophic blast at the Sigachi Industries pharmaceutical unit in the Pashamylaram industrial area near Hyderabad resulted in the deaths of 17 workers and injured 30 others. This tragedy has once again brought the critical issue of industrial safety, particularly in hazardous industries like pharmaceuticals and chemicals, into sharp focus. This incident serves as a vital case study for GS Paper 3 (Disaster Management) and GS Paper 2 (Government Policies and Interventions, Issues Relating to Health).

Details of the Incident and Immediate Aftermath

The explosion, which occurred on the morning of 1st July 2025, was so powerful that it caused the production unit building to collapse. The majority of the victims were migrant workers. Rescue operations involved a massive multi-agency response, including the National Disaster Response Force (NDRF), the fire department, and local police.

Investigation and Regulatory Scrutiny

A prima facie investigation has been initiated. The suspected cause is a pressure build-up in the factory's air-handling unit. The factory was involved in manufacturing Microcrystalline Cellulose (MCC), a powder used in pharmaceuticals and food products. The editorial headline "Costly lapses" suggests a failure in maintaining a high level of safety culture.

Analysis of Industrial Safety Issues

The Hyderabad blast is not an isolated incident but is symptomatic of broader systemic issues plaguing industrial safety in India.

Enforcement Gaps: While India has laws like the Factories Act, their effectiveness is often undermined by weak enforcement, infrequent inspections, and non-stringent penalties.
Vulnerability of Migrant Workers: The high number of migrant worker casualties highlights their particular vulnerability. They often lack proper training, are unaware of their rights, and may be employed in hazardous jobs with inadequate safety gear.
Lack of Safety Culture: In many industries, safety is often viewed as a matter of compliance to be ticked off a checklist rather than an integral part of the operational culture.
Rapid Industrialization: The pressure for rapid industrial growth can sometimes lead to the sidelining of environmental and safety considerations.

Addressing these issues requires a comprehensive approach, including strengthening regulatory bodies, mandating third-party safety audits, making management criminally liable for gross negligence, and empowering workers through training and robust grievance redressal mechanisms.

15. MONSOON DYNAMICS AND WATER SECURITY: IMD'S FORECAST AND ITS IMPLICATIONS

Context: The India Meteorological Department (IMD) has forecasted "above normal" monsoon rainfall for July 2025, the most critical month for Indian agriculture. The rainfall is projected to be approximately 6% higher than the long-period average. While this brings hope, it also comes with warnings of potential flooding. This topic is crucial for GS Paper 1 (Geography, Climatology) and GS Paper 3 (Agriculture, Water Resources, Disaster Management).

Details of the Forecast

Overall Forecast: July rainfall is expected to be around 106% of the Long Period Average (LPA) of 28 cm.
Regional Distribution:
- Surplus Regions: Above-normal rainfall activity is expected in East Madhya Pradesh, Chhattisgarh, Odisha, parts of Vidarbha, and Telangana.
- Flood Alerts: The IMD has specifically warned that states like Chhattisgarh, Odisha, and Telangana must remain alert for potential flooding, as surplus rainfall is expected in the catchment areas of the Krishna, Godavari, and Mahanadi river basins.
June Performance: The monsoon's performance in June 2025 was already 8.9% above average for the country as a whole.

Implications for Agriculture and Water Management

The monsoon is the lifeblood of the Indian economy, and an above-normal rainfall forecast has several significant implications:

Positive Impact on Agriculture: A healthy monsoon is vital for the Kharif sowing season. Good rainfall boosts agricultural output, replenishes reservoirs crucial for Rabi crops, and increases rural incomes, stimulating overall economic growth.
Challenge of Water Management: The forecast of surplus rain underscores the dual nature of the monsoon. The challenge is not just about the quantity of rain but also its spatial and temporal distribution. Intense rainfall events in short periods can lead to floods, soil erosion, and crop damage.
Need for Integrated River Basin Management: The specific warnings for the Mahanadi, Godavari, and Krishna basins highlight the urgent need for integrated river basin management, involving close coordination between states, real-time monitoring, and timely flood warnings.
Groundwater Recharge: A good monsoon is critical for recharging groundwater levels. However, intense, short-duration rainfall can lead to rapid runoff with less percolation, making groundwater recharge less effective.

The IMD's forecast necessitates a proactive approach to water management, focusing on both harnessing the bounty of a good monsoon through rainwater harvesting and mitigating the risks of flooding through better infrastructure and early warning systems.

PART E: CONCLUDING SECTIONS

16. MOTIVATION: THE MARATHON OF A THOUSAND STEPS

Dear Aspirant,

As you navigate the vast ocean of current affairs, it is easy to feel overwhelmed. Each day brings a new wave of information, a new policy to dissect, a new international development to understand. Today, you have read about digital transformations, legal overhauls, diplomatic maneuvers, and economic shifts. It is a microcosm of the very syllabus you seek to master.

Remember that this journey, the UPSC preparation, is not a sprint; it is a marathon. It is a marathon built not of one giant leap, but of a thousand consistent, deliberate steps. Each day you read, each note you make, each answer you write is a step forward.

The key is not to fixate on the distant finish line, but to focus on the step you are taking right now. Find satisfaction in the small victories: understanding a complex editorial, connecting two disparate topics, or articulating a thought with newfound clarity. These are the building blocks of your success.

Like the nation itself, which is on a path of transformation with initiatives like Digital India and the new criminal codes, you too are on a journey of profound personal transformation. You are not just accumulating knowledge; you are building character, resilience, and a deeper understanding of the world you wish to serve.

So, when the path seems long and the destination far, take a deep breath. Acknowledge the progress you have made. Trust the process. And take the next step. Then the next. For it is in the consistency of these small, daily efforts that the foundation of a remarkable achievement is laid. Keep walking, keep learning, keep growing. Your destination awaits.

17. COMPREHENSIVE PRELIMS FACTS OF THE DAY

Digital India Mission: Launched in 2015, it completed 10 years on July 1-2, 2025. Key platforms include UPI, DigiLocker, UMANG, and CoWIN.
New Criminal Laws: The Bharatiya Nyaya Sanhita (BNS), Bharatiya Nagarik Suraksha Sanhita (BNSS), and Bharatiya Sakshya Adhiniyam (BSA) replaced the IPC, CrPC, and Indian Evidence Act, respectively. They completed one year of implementation on July 1-2, 2025.
NIPCCD Renaming: The National Institute of Public Cooperation and Child Development was renamed the Savitribai Phule National Institute of Women and Child Development.
INS Tamal (F71): The last foreign-built major warship for the Indian Navy, a Tushil-class (upgraded Krivak-class) stealth frigate, was commissioned in Kaliningrad, Russia. It is armed with BrahMos missiles.
PM's Foreign Tour: PM Modi began a five-nation tour to Ghana, Trinidad & Tobago, Argentina, Brazil (for the BRICS Summit), and Namibia.
BRICS Summit 2025: To be held in Rio de Janeiro, Brazil. Chinese President Xi Jinping will be skipping it for the first time, to be represented by Premier Li Qiang.
ELI Scheme: The Cabinet approved the Employment-Linked Incentive scheme with an outlay of ~₹1 lakh crore to create over 3.5 crore jobs. It provides incentives to both first-time employees and employers.
RDI Scheme: The Cabinet approved the Research, Development, and Innovation scheme with a corpus of ₹1 lakh crore to spur private sector R&D through long-term, low-interest financing.
GST Anniversary: The Goods and Services Tax regime completed 8 years on July 1, 2025. Gross GST collection for June 2025 was ~₹1.85 lakh crore.
Amarnath Yatra: The first batch of the annual Amarnath Yatra was flagged off from Jammu.
IMD Monsoon Forecast: Predicted "above normal" rainfall for July 2025 (106% of LPA), with flood alerts for Krishna, Godavari, and Mahanadi river basins.
India-Pakistan Ceasefire: Pakistani PM Shehbaz Sharif acknowledged Saudi Arabia's "quiet diplomacy" in mediating a ceasefire with India after the May 2025 clashes.

INTERACTIVE FLASHCARDS (CLICK TO FLIP!)

What major milestone did the Digital India Mission achieve on July 1-2, 2025?

It completed 10 years since its launch in 2015.

What are the three new criminal laws that replaced the IPC, CrPC, and Evidence Act?

BNS (Bharatiya Nyaya Sanhita), BNSS (Bharatiya Nagarik Suraksha Sanhita), and BSA (Bharatiya Sakshya Adhiniyam).

What is the new name for NIPCCD?

Savitribai Phule National Institute of Women and Child Development.

What is the significance of the warship INS Tamal (F71)?

It is the last major foreign-built warship to be inducted into the Indian Navy, marking a pivot to self-reliance. It's armed with BrahMos missiles.

Which two major schemes with an outlay of ₹1 lakh crore each were recently approved by the Cabinet?

1. Employment-Linked Incentive (ELI) Scheme for job creation.
2. Research, Development, and Innovation (RDI) Scheme to boost private R&D.

Which country's leader is skipping the 2025 BRICS Summit in Brazil for the first time?

Chinese President Xi Jinping. He will be represented by Premier Li Qiang.

18. MAINS PRACTICE QUESTIONS FOR THE DAY

GS Paper 2 (Governance): The Digital India mission has evolved from a service delivery mechanism to a foundational Digital Public Infrastructure (DPI) stack. Critically evaluate the achievements of the mission over the last decade, highlighting the remaining challenges of the digital divide and data privacy.
GS Paper 2 (Polity/Judiciary): The new criminal laws (BNS, BNSS, BSA) aim to shift India's criminal jurisprudence from being punitive to justice-oriented. Discuss the key reforms introduced and analyze the institutional challenges that could impede their effective implementation at the grassroots level.
GS Paper 2 (International Relations): The absence of key leaders from the 2025 BRICS summit highlights the growing internal contradictions within the bloc. In this context, analyze the implications of these shifts for the future of BRICS and the strategic opportunities it presents for India.
GS Paper 3 (Economy): The government has recently launched the Employment-Linked Incentive (ELI) scheme and the Research, Development, and Innovation (RDI) scheme. Analyze how these two initiatives, in tandem, aim to foster a more resilient and competitive Indian economy.
GS Paper 3 (Security): The commissioning of INS Tamal marks a pivot towards greater self-reliance in naval defence. Discuss the significance of this milestone in the context of the Indian Navy's modernization plans and the strategic importance of indigenization for India's maritime security.