New Tax Bill, China's Dam, AI in Army & More | UPSC Current Affairs Analysis: 21 July 2025

Comprehensive Analysis of Current Events: 21st July 2025

"The will to win, the desire to succeed, the urge to reach your full potential... these are the keys that will unlock the door to personal excellence." - Confucius

Table of Contents

1. Polity and Governance (GS Paper-II)
2. International Relations (GS Paper-II)
3. Indian Economy (GS Paper-III)
4. Security (GS Paper-III)
5. Environment and Geography (GS Paper-I & III)
6. Science and Technology (GS Paper-III)
7. Art, Culture, and Social Issues (GS Paper-I)
8. Conclusion
9. Motivation for Aspirants
10. Prelims Facts: 21st July 2025
11. Mains Practice Questions
12. Daily Quiz
13. Flashcards for Revision

1.0 Polity and Governance (GS Paper-II)

1.1 Monsoon Session of Parliament Commences: A Packed Legislative and Political Agenda

Context: The Monsoon Session of Parliament commenced on July 21, 2025, setting the stage for intense legislative activity. Scheduled until August 21, 2025, with 21 sittings, the session convenes in a politically charged atmosphere shaped by the recent 'Operation Sindoor' and electoral processes in poll-bound Bihar. The government has listed 15 bills for consideration.

Analysis of Key Legislative Business: The bills target economic reforms, international compliance, heritage preservation, and administrative accountability.

• The Income Tax Bill, 2025: Aims to replace the 1961 Act, focusing on simplifying legal language and enhancing clarity to improve the 'Ease of Doing Business'. It represents a foundational reform for a more predictable tax administration.
• The National Anti-Doping (Amendment) Bill, 2025: This bill seeks to align India's anti-doping laws with the latest World Anti-Doping Agency (WADA) Code, ensuring the operational independence of the National Anti-Doping Appeal Panel.
• The Geoheritage Sites and Geo-relics Bill, 2025: This legislation establishes a formal process for preserving geoheritage sites of national importance, aiming to promote geological research, education, and geo-tourism.
• Other Significant Bills: Include amendments to the Mines and Minerals Act, the new Indian Ports Bill, and a suite of bills to update maritime commerce laws.

New Digital Attendance System for MPs: A new digital system requires MPs to register their presence via a device at their seats, aiming to increase transparency and curb parliamentary absenteeism.

Key Bills in Monsoon Session 2025
The Income Tax Bill, 2025
The National Anti-Doping (Amendment) Bill, 2025
The Geoheritage Sites and Geo-relics Bill, 2025
The Mines and Minerals (Development and Regulation) Amendment Bill, 2025
The Indian Ports Bill, 2025
The Jan Vishwas (Amendment of Provisions) Bill, 2025

1.2 Parliamentary Debate on National Security: The Case of 'Operation Sindoor'

Context: The session is the first since 'Operation Sindoor', a counter-terrorism operation launched on May 7, 2025, in response to a terrorist attack in Pahalgam. It involved precision strikes against terror infrastructure across the LoC and in Pakistan.

Detailed Analysis of the Operation:

• Trigger and Rationale: A punitive campaign against 'The Resistance Front' (TRF), a front for Lashkar-e-Taiba (LeT), after Pakistan failed to act against them.
• Execution and Multi-Domain Synergy: A showcase of integrated military power. The IAF used deception tactics and Israeli-made Harpy loitering munitions for Suppression of Enemy Air Defenses (SEAD) missions, destroying Chinese-made HQ-9 SAM systems. The Indian Navy deployed a Carrier Battle Group for maritime dominance.
• Strategic Objectives: The operation aimed to degrade the adversary's support systems, particularly air defence, recalibrating the strategic balance. It was a significant evolution from the 2016 Surgical Strikes and 2019 Balakot Airstrike. It also served as a live validation of India's indigenous defence capabilities like the BrahMos missile.

1.3 Issues in Indian Federalism and Judiciary: Statehood Demands and Hate Speech

Context: Two events highlight tensions in India's federal framework. Congress leaders were detained in J&K while campaigning for statehood restoration. Concurrently, a PIL was filed in the Supreme Court against MNS chief Raj Thackeray for alleged hate speech.

Analysis: These events reflect the friction between a centralizing national narrative and the assertion of regional identities. The J&K issue revolves around constitutional autonomy, while the hate speech case tests the legal boundaries of regional chauvinism against the principle of single citizenship. Both cases underscore the judiciary's critical role in mediating these fundamental conflicts.

2.0 International Relations (GS Paper-II)

2.1 India’s Evolving Multilateral Strategy: The Rise in UN Abstentions

Context: Analysis of India's UN voting patterns shows a surge in abstentions to an all-time high of 44% in 2025, while 'yes' votes dropped to 56%. This is interpreted as a deliberate diplomatic strategy.

Analysis of the Shift:

• Intensifying Global Polarization: The rivalry between the US-led West and the China-Russia axis forces binary choices. Abstention allows India to preserve relationships with all major powers.
• Complexity of Modern Resolutions: Resolutions are often "Christmas trees" with conflicting clauses, making blanket endorsement difficult.
• Assertion of Strategic Autonomy: The rise in abstentions is a clear signal that India's foreign policy is not on "auto-pilot." It positions India as a pivotal "swing state," enhancing its diplomatic leverage.

2.2 India’s High-Level Diplomatic Engagements: PM's Visit to UK & Maldives

Context: PM Modi is visiting the UK (July 23-24) and the Maldives (July 25-26), a strategic balancing act involving a key Western power and a crucial neighbour.

India-UK Visit: The visit aims to build rapport with the new Labour government and will likely see the formal signing of the landmark India-UK Free Trade Agreement (FTA). This will boost bilateral trade by providing greater market access for both nations.

India-Maldives Visit: PM Modi will be the 'Guest of Honour' for the Maldives' 60th Independence Day. This visit signals a strategic reset after a period of strained relations, reinforcing India's 'Neighbourhood First' policy and 'Vision SAGAR'. It is a powerful manoeuvre to reassert Indian influence in the Indian Ocean Region (IOR).

2.3 Geopolitics of the Indo-Pacific: Japan's Political Shift and Regional Initiatives

Context: Japan's ruling coalition lost its majority in the upper house election, and a new IOM-UNHCR "train-to-hire" refugee initiative has been launched.

Analysis of Japan's Election: The loss for PM Shigeru Ishiba's LDP-led coalition ushers in political instability. The key driver was public discontent over economic issues. Significantly, new right-wing populist and nationalist parties like Sanseito gained ground on a "Japanese First" platform. This rightward shift and potential legislative gridlock in Japan could slow the momentum of regional initiatives like the Quad.

Analysis of "Train-to-Hire" Initiative: This program provides skills training to refugees for international employment. It marks a paradigm shift from humanitarian aid to promoting refugee self-reliance. For democratic nations, it showcases an orderly, humane model of migration governance, acting as a form of soft power in the Asia-Pacific.

3.0 Indian Economy (GS Paper-III)

3.1 State of the Indian Economy: The Dichotomy of Low Inflation and Input Shortages

Context: The Indian economy presents a mixed picture. CPI inflation fell to a low of 2.1% in June 2025, but a severe shortage of fertilisers looms.

Analysis of Low Inflation: Driven by surplus monsoon in 2024 leading to bumper harvests and proactive government policy of importing pulses and vegetable oils. Current sowing patterns are strong due to a good monsoon start.

Analysis of Fertiliser Shortage: Stocks of Urea and DAP are critically low. The root cause is a sharp decline in imports, primarily due to China imposing stringent export restrictions. This exposes a critical strategic vulnerability in India's agricultural supply chain and food security, highlighting the need for import diversification and increased domestic production under the 'Atmanirbhar Bharat' mission.

3.2 Corporate and Market Developments

The stock market showed optimism, driven by key corporate actions:

• SBI's Mega QIP: State Bank of India launched a massive ₹25,000-crore Qualified Institutional Placement (QIP) to bolster its capital adequacy and support credit growth.
• Strong Cement Sector: UltraTech Cement reported profits surpassing expectations, indicating robust activity in construction and infrastructure.
• Corporate Expansion: Sun TV diversified into sports entertainment, Ashok Leyland expanded financing to rural areas, and IREDA's loan book surged due to renewable energy project financing.

4.0 Security (GS Paper-III)

4.1 Internal Security: Dismantling a Cross-Border Terror Module in Punjab

Context: Punjab Police busted a terror module of the proscribed Khalistani outfit, Babbar Khalsa International (BKI), arresting three individuals linked to grenade attacks.

Analysis of the Module: The module was remotely operated by foreign-based handlers linked to Pakistan-based terrorist Harwinder Singh Rinda, with ISI backing. A key finding is the transactional nature of recruitment, with local operatives being hired for small sums of money (as low as ₹10,000). This points to a "terror-on-demand" model fueled by the narco-terror nexus, making counter-terrorism efforts more challenging as it shifts focus from ideological cadres to a wider net of petty criminals.

4.2 Modernization of Defence Forces: The Indian Army's AI Roadmap

Context: The Indian Army has fast-tracked a roadmap for integrating Artificial Intelligence (AI) by 2026-27, accelerated by lessons from 'Operation Sindoor'.

Analysis of the AI Roadmap: The core objective is to achieve "decision advantage" on the battlefield. Key applications include:

• ISR: AI for real-time data fusion, facial recognition, and anomaly detection.
• Autonomous Systems: Capabilities for "drone swarming" and robotic systems for high-risk operations.
• Decision Support: AI-powered wargaming simulations and logistics optimization.

This roadmap signifies a fundamental doctrinal shift from a "manpower-intensive" to an "information-intensive" military, requiring a complete overhaul of training, human resource policies, and command structures.

5.0 Environment and Geography (GS Paper-I & III)

5.1 Transboundary Water Governance: China's Brahmaputra Mega-Dam

Context: China has begun construction on a colossal hydropower project on the Yarlung Zangbo river (upper Brahmaputra) in Tibet, near the Arunachal Pradesh border.

Analysis and Implications: The project, set to be the world's largest, grants China the ability to control the Brahmaputra's flow, posing a threat of either reduced water supply or catastrophic floods for India. This act of "hydro-hegemony" occurs without any binding water-sharing treaty. India has voiced concerns and is considering fast-tracking its own Siang Upper Multipurpose Project as a counter-measure, risking a dangerous "dam-building race" in an ecologically fragile region.

5.2 Environmental and Social Issues: The Kanwar Yatra

Context: The annual Kanwar Yatra is underway, requiring extensive administrative arrangements but also raising environmental and social concerns.

Analysis of Impacts:

• Environmental Degradation: Massive generation of solid waste (especially single-use plastic), pollution of the River Ganga, and reported deforestation for creating new routes.
• Socio-Economic Impact: While boosting local economies, it causes significant disruption, such as the closure of schools in several districts for a week, highlighting the challenge of balancing faith with public services and environmental protection.

6.0 Science and Technology (GS Paper-III)

6.1 Advances in Robotics and Artificial Intelligence: The Dawn of Autonomous Systems

Context: Chinese company UBTech Robotics unveiled a humanoid robot, Walker S2, capable of autonomously changing its own batteries, enabling 24/7 operation.

Analysis: This is a critical milestone towards true autonomy, solving the bottleneck of downtime for charging. It heralds the "third wave" of automation involving autonomous physical robots or "embodied AI." For a labour-surplus country like India, this poses a profound challenge, as a robot that can work 24/7 could replace three human workers and disrupt numerous sectors beyond manufacturing. This highlights a potential "hardware gap" in India's tech strategy and puts immense pressure on national skill development missions.

7.0 Art, Culture, and Social Issues (GS Paper-I)

7.1 Faith and Culture in India: Kamika Ekadashi

Context: On July 21, 2025, Hindu devotees observed Kamika Ekadashi, a significant fast dedicated to Lord Vishnu.

Significance: Falling on the eleventh day of the waning moon in the month of Shravana, it is believed to fulfill desires and absolve sins. The observance, with its elaborate rituals and fasting, highlights the continuity of Puranic traditions and the enduring power of faith in contemporary India.

7.2 Key Social Issues in News: Public Health Awareness on Stroke

Context: A nationwide campaign was launched to raise awareness about brain strokes, with India recording approximately 18 lakh new cases annually.

Significance: This is a critical intervention against the growing epidemic of Non-Communicable Diseases (NCDs). The campaign aims to educate the public on risk factors, promote early detection, teach symptom recognition (FAST: Face drooping, Arm weakness, Speech difficulty, Time to call), and emphasize the importance of timely medical intervention during the "golden hour."

8.0 Conclusion

The events of July 21, 2025, paint a picture of India in dynamic transition. The nation is pursuing ambitious economic reforms while grappling with complex security challenges, from cross-border proxy wars to new theatres of hydro-hegemonic competition. Diplomatically, India is asserting its strategic autonomy in a polarized world. However, vulnerabilities like the fertiliser crisis expose the need to align economic policy with strategic self-reliance. The rapid advancement in AI and robotics signals both an opportunity for military modernization and a profound challenge for the future workforce. India's trajectory as a leading power hinges on its ability to manage these complex internal dynamics while navigating a turbulent external environment.

9.0 Motivation for Aspirants

Today's current affairs are a web of interconnected challenges. Your task as an aspirant is to see these connections—to link a dam in Tibet to international relations and water security, or an AI roadmap to military doctrine and human resource management. Master the 'why' and the 'so what'. You are not just studying for an exam; you are training to be a problem-solver for a nation of 1.4 billion people. Let your curiosity be your guide, your analytical mind be your weapon, and your determination be your shield. Every hour you invest today is an investment in a stronger India tomorrow.

10.0 Prelims Facts: 21st July 2025

• Kamika Ekadashi: A Hindu fast for Lord Vishnu, observed on the 11th day of the waning moon in Shravana month.
• Operation Sindoor: A tri-services counter-terror operation (May 2025) by India against terror infrastructure in Pakistan/PoK.
• Harpy Loitering Munitions: Israeli-made "suicide drones" used by the IAF for SEAD missions during Operation Sindoor.
• Yarlung Zangbo River: The Tibetan name for the Brahmaputra, where China is building a mega-dam.
• Babbar Khalsa International (BKI): A proscribed Khalistani terror group backed by Pakistan's ISI.
• Qualified Institutional Placement (QIP): A capital-raising tool for listed companies. SBI recently launched a ₹25,000-crore QIP.
• Walker S2 Robot: A humanoid robot by UBTech Robotics capable of autonomously changing its batteries.
• Sanseito Party: A new right-wing populist party in Japan that gained significantly in the July 2025 election.
• Geoheritage Sites Bill, 2025: A bill to preserve sites of geological importance in India.
• Vision SAGAR: "Security and Growth for All in the Region," India's strategic vision for the Indian Ocean.

11.0 Mains Practice Questions

1. GS Paper-II (Polity & Governance): The legislative agenda of the Monsoon Session 2025 reflects a dual focus on major economic reforms and niche administrative modernization. Critically analyze the key bills introduced, with special emphasis on the Income Tax Bill, 2025, and discuss how they align with the government's broader governance philosophy.
2. GS Paper-II (International Relations): India's increasing rate of abstentions in UN voting is a deliberate strategic choice rather than a sign of indecisiveness. Evaluate this statement in the context of the current polarized global order and India's pursuit of strategic autonomy.
3. GS Paper-III (Security): 'Operation Sindoor' represents a significant evolution in India's counter-terrorism doctrine. Discuss the key operational and technological aspects of the operation and analyze its strategic implications for the India-Pakistan security dynamic.
4. GS Paper-III (Environment/Geography): China's construction of a mega-dam on the Yarlung Zangbo (Brahmaputra) river is an act of "hydro-hegemony" with severe strategic and environmental implications for India. Examine the potential impacts and discuss India's policy options to mitigate this transboundary water challenge.
5. GS Paper-III (Science & Technology / Economy): The Indian Army's AI roadmap signifies a doctrinal shift towards a technology-enabled force. Analyze the key features of this roadmap. What are the potential challenges, both technological and cultural, in its implementation, and what are its long-term implications for India's defence preparedness?

12.0 Daily Quiz

1. The Monsoon Session of Parliament, 2025, is set to consider the "Geoheritage Sites and Geo-relics (Preservation and Maintenance) Bill, 2025". What is the primary objective of this bill?
   a) To increase funding for the Archaeological Survey of India.
   b) To regulate the mining of minerals in ecologically sensitive zones.
   c) To provide a legal framework for preserving sites of geological importance for research and tourism.
   d) To transfer the maintenance of all heritage sites to the private sector.
2. With reference to 'Operation Sindoor', which of the following statements is/are correct?
   1. It was a multi-domain operation involving the Indian Army, Navy, and Air Force.
   2. A key objective was the Suppression of Enemy Air Defenses (SEAD) using loitering munitions.
   3. The operation was launched in response to a terror attack in Uri.
   Select the correct answer using the code given below:
   a) 1 and 2 only
   b) 2 and 3 only
   c) 1 and 3 only
   d) 1, 2 and 3
3. The recent decline in food inflation in India has been attributed to several factors. Which of the following is identified as a major emerging threat to this trend?
   a) A predicted failure of the monsoon in the later phase.
   b) A sharp increase in the Minimum Support Price (MSP) for Kharif crops.
   c) A significant shortage of fertilisers due to reduced imports from China.
   d) A sudden surge in global food commodity prices.
4. The ruling coalition of Prime Minister Shigeru Ishiba lost its majority in Japan's upper house election. Which of the following was a significant political outcome of this election?
   a) The main liberal opposition party formed the new government.
   b) New right-wing populist parties like Sanseito made significant gains.
   c) The election led to an immediate call for a snap lower house election.
   d) Japan announced its withdrawal from the Quad initiative.
5. China has begun construction of a mega-dam on the Yarlung Zangbo river. What is India's proposed counter-measure to mitigate the potential impact of this project?
   a) To file a case against China in the International Court of Justice.
   b) To build its own large multipurpose project, the Siang Upper Multipurpose Project, downstream.
   c) To suspend all trade relations with China until the construction is halted.
   d) To seek mediation from the United Nations Security Council.

Quiz Answers: 1(c), 2(a), 3(c), 4(b), 5(b)

13.0 Flashcards for Revision

Operation Sindoor

A major Indian tri-services counter-terror operation (May 2025) against terror infrastructure in Pakistan/PoK, notable for its multi-domain synergy and use of advanced technology like loitering munitions for SEAD missions.

Hydro-hegemony

A concept where an upstream country uses its control over river water to exert power over downstream countries. China's Brahmaputra dam is a key example.

Strategic Abstention (UN)

A diplomatic strategy of deliberately abstaining from a UN vote to assert strategic autonomy, avoid taking sides, or signal nuanced reservations. India's current UN policy reflects this.

Yarlung Zangbo Dam

The world's largest hydropower project under construction by China on the Brahmaputra river in Tibet, posing significant water security and environmental threats to India.

Indian Army AI Roadmap

A plan to integrate AI, ML, and Big Data into military operations by 2026-27, focusing on enhanced ISR, autonomous systems (drone swarms), and faster decision-making.

Kamika Ekadashi

A significant Hindu fast dedicated to Lord Vishnu, observed in the month of Shravana. It is believed to absolve sins and is mentioned in the Brahma Vaivarta Purana.

Income Tax Bill, 2025

A landmark bill to replace the 1961 Act, aiming to simplify the language and structure of the tax code to improve the ease of doing business.

Babbar Khalsa Int. (BKI)

A proscribed Khalistani terror group, backed by Pakistan's ISI. A recent module bust revealed its use of local criminals for money, indicating a narco-terror nexus.

Sanseito Party (Japan)

A new right-wing populist and nationalist party in Japan that made significant electoral gains in July 2025, campaigning on an anti-globalist, "Japanese First" platform.

Fertiliser Shortage (India)

An emerging crisis caused by a sharp drop in fertiliser imports, primarily due to export restrictions by China, threatening India's agricultural output and food security.