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June 29, 2025 Current Affairs
Mains Analysis
India’s Strategic Challenge from China in the Indian Ocean: A Contest for Regional Dominance The Parliamentary Standing Committee on External Affairs has raised concerns about the increasing involvement of powers outside the region—particularly China—in the Indian Ocean Region (IOR), identifying this as a major strategic issue for India. Growing Importance of the Indian Ocean Since the early 2000s, the Indian Ocean has re-emerged as a critical arena for global economic activity and security, reflecting its rising strategic relevance. Emerging Economies and Trade Links With the rise of major economies like India and China, the Indian Ocean has become a vital corridor for international trade and connectivity, transforming it into a global commercial hub. Security Challenges and Piracy Risks Piracy near the Somali coast exposed vulnerabilities in vital maritime routes, leading to intensified security efforts to safeguard Sea Lines of Communication (SLOCs) throughout the region. Indo-Pacific as a Strategic Construct The Indo-Pacific concept, which strategically links the Indian and Pacific Oceans, has elevated the Indian Ocean’s role in shaping the evolving global order. China’s Strategic Expansion in the IOR Unlike its aggressive stance in the South China Sea, China has taken a more methodical and long-term approach in the Indian Ocean, expanding its presence through economic engagement, political partnerships, and maritime initiatives. Infrastructure Development and Political Outreach China is deepening its regional presence by:
Maritime Surveillance via Research Vessels China has been operating research and survey ships in the IOR, often docking them in Sri Lanka and the Maldives. These vessels are suspected of conducting underwater surveillance and intelligence collection, potentially undermining India’s maritime security. China-Indian Ocean Forum Initiative In 2022, China launched the China-Indian Ocean Forum to shape regional governance and multilateral frameworks. India’s absence from this initiative underscores a widening geopolitical divide.
Main Findings from the Committee’s Report
India’s Strategic Response:
1. Strengthening Regional Partnerships: India is proactively engaging with neighboring countries to raise awareness about the long-term security consequences of China''s expanding role in the IOR. 2. Sri Lanka’s Assurances: In December 2024, Sri Lankan President Anura Kumara Dissanayake reaffirmed that Sri Lanka would not permit any use of its territory that could threaten India’s security or regional peace. 3. Opposition to BRI and CPEC: India maintains a firm stance against China’s Belt and Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC) due to sovereignty and strategic concerns. 4. Leadership in Maritime Security: India is positioning itself as a trusted security provider and first responder in the IOR, with key roles in: · Humanitarian Assistance and Disaster Relief (HADR) · Maritime Domain Awareness (MDA) · Developmental cooperation
Prime Minister Modi’s MAHASAGAR doctrine (Mutual and Holistic Advancement for Security and Growth for All in the Region) reflects India’s comprehensive regional vision.
5. Strengthening Regional Institutions and Naval Capabilities India is working to enhance regional maritime cooperation and limit China’s influence through:
Additionally, India is investing in the modernisation and indigenisation of its naval forces, focusing on operational preparedness and strategic deterrence in the Indian Ocean.
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India’s Position in Global Gender Equality Rankings Highlights Persistent Gaps India has fallen to 131st place out of 148 countries in the 2025 Global Gender Gap Index, published by the World Economic Forum. While there has been some progress or stability in economic participation, education, and health indicators, the political empowerment of women has significantly declined, dragging down the country’s overall ranking.
Main Cause of the Decline: Political Disempowerment The primary factor behind India’s drop in rankings is the deterioration of political representation for women:
This downward trend has negatively impacted India’s performance in the Index, even though voter participation among women has been increasing.
Future Potential: 33% Reservation Law India’s Women’s Reservation Law, passed in 2023, mandates 33% seats for women in the Lok Sabha and State Assemblies. However, it will only be implemented after the next Census and delimitation exercise, making 2029 the earliest possible rollout. If applied, the law could significantly boost women''s representation and enhance India’s standing on global gender equality indicators—but the gains will depend on effective and long-term implementation.
Current Levels of Representation: Still Inadequate
Key Concerns: Limited Scope and Structural Barriers 1. Time-limited Impact: The 33% reservation law is valid for only 15 years, likely covering just two general elections (2029 and 2034), raising doubts about its long-term impact. 2. Leadership Gaps: Even with more women in Parliament, they may not be proportionately represented in ministerial roles. Despite decades of 33–50% reservation at the panchayat level, there is no clear pathway to promote women to state or national leadership. 3. Progress in Electoral Participation not Translated into Candidature: In 1952, 28 lakh women were excluded from the electoral rolls for being identified only through male relatives. Over time, women’s inclusion in the democratic process has improved drastically. The gender gap in voter turnout has narrowed from 17 percentage points in 1962 to under 2 points by 2014. In the last two general elections, more women voted than men, partly due to male out-migration for employment. With rising turnout, women have become a crucial vote bank, prompting political parties to introduce targeted welfare schemes—such as free bicycles for girls and cash support for poor women. Women voters are reshaping political campaigns and policy agendas. Yet, this electoral power has not translated into more women candidates. 4. Tokenism and Quotas within Quotas: Major parties often avoid fielding women in general or stronghold seats, citing "winnability" concerns. Instead, women are frequently nominated in reserved SC/ST constituencies, fulfilling multiple quotas but limiting broader representation. What Needs to Change: A Systemic Overhaul
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RBI Proposes a Daily Financial Conditions Index to Monitor Market Health · In an effort to enhance real-time tracking of India’s financial ecosystem, the Reserve Bank of India (RBI) has proposed the development of a daily Financial Conditions Index (FCI). · This index will offer a comprehensive measure of how tight or relaxed financial conditions are, based on their deviation from historical norms since 2012. · This initiative aligns with practices adopted by global central banks, where such indices serve as vital tools for assessing monetary policy effectiveness, market stress, and systemic risks.
What Is the Financial Conditions Index? The FCI is a composite metric that consolidates market data across key financial domains to evaluate financial stability on a high-frequency basis. The index draws from five major segments: · Money Markets · Government Securities (G-Secs) · Corporate Bonds · Equity Markets · Foreign Exchange Markets According to the RBI’s June 2025 Bulletin, the FCI is designed to:
The index is constructed using 20 market-based indicators, with values standardized into standard deviation units. A positive value reflects tighter-than-average conditions, while a negative value points to looser conditions.
Trends in Financial Conditions Over Time Post-COVID Period: Easing Phase Following the severe tightening seen during the COVID-19 market crash, financial conditions turned significantly accommodative in 2021–2022, driven by RBI’s actions such as:
At its lowest point in mid-June 2021, the FCI stood at -2.197, signifying extremely easy financial conditions. Past Episodes of Tightening The index recorded notable peaks during major financial shocks:
Recent Developments and Current Status Since mid-2023, India’s financial conditions have generally remained loose, supported by:
However, by late 2024, tightening pressures emerged due to:
By March 2025, the index stabilised and returned to neutral levels, suggesting market normalization.
Why the FCI Matters: Policy and Market Implications A daily FCI will significantly enhance India''s capacity for real-time macro-financial oversight, offering multiple benefits:
Internationally, FCIs are widely used by institutions like the US Federal Reserve and European Central Bank. An India-specific FCI tailored to local conditions will improve monetary transmission and crisis preparedness.
Looking Ahead · As India’s financial system grows more sophisticated, the proposed daily FCI will be a crucial addition to the RBI’s analytical framework. Its ability to consolidate signals from diverse financial markets into a single index will offer timely insights for both policy authorities and market participants. · Further enhancements—such as integrating new market indicators, refining algorithms, and linking the FCI to broader economic dashboards—can significantly expand its strategic value in the years to come.
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Secondary Pollutants Emerge as Major Drivers of India’s PM2.5 Pollution A recent study has shown that secondary pollutants now contribute nearly one-third of India’s PM2.5 (fine particulate matter) pollution, marking a significant shift in the understanding of air quality dynamics in the country.
Understanding Secondary PM2.5 Pollution PM2.5, or particulate matter smaller than 2.5 microns, is among the most dangerous air pollutants, known for causing serious respiratory and cardiovascular conditions. While primary pollutants—like soot, dust, and emissions from vehicles and industrial sources—have traditionally been seen as the main contributors, new findings highlight the growing importance of secondary pollutants, particularly ammonium sulphate, in India’s air pollution burden.
Primary vs. Secondary Pollutants
Key Insights from the CREA Study A report by the Centre for Research on Energy and Clean Air (CREA) reveals that secondary particles now make up a significant portion of India’s PM2.5 load:
1. Coal Power Plants as Primary Source · Over 60% of India’s SO₂ emissions—a key precursor to ammonium sulphate—originate from coal-based thermal power plants. · These emissions play a major role in the formation of secondary PM2.5. 2. Localized Impact · Within a 10 km radius of coal plants, ammonium sulphate levels averaged 15 µg/m³—2.5 times higher than in regions farther away (6 µg/m³). · Near these plants, secondary PM2.5 contributes 36% to total pollution; even in more distant areas, it accounts for 23%. 3. Regulatory Gaps and Compliance Issues · Though Flue Gas Desulphurisation (FGD) systems are mandated to reduce SO₂ from coal plants, only 8% of these facilities have complied. · Reports suggest that the government may consider rolling back the FGD mandate, which would weaken national efforts to curb secondary pollution. 4. Impact on NCAP Cities: The study has significant implications for the 130 cities under the National Clean Air Programme (NCAP), which aims to reduce pollution levels by 20–30% by 2025–26. · Ammonium sulphate concentrations in these cities ranged from 3.9 to 22.5 µg/m³. · In 114 of the 130 cities, it made up more than 30% of PM2.5 levels. · When ammonium nitrate is added, secondary pollutants may account for up to 50% of PM2.5 in some urban areas.
Steps Needed to Tackle Secondary Pollution: To effectively reduce the growing burden of secondary pollutants, a comprehensive, multi-pronged strategy is essential:
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Prelims Bytes
Mobile Biosafety Level-3 Laboratory (MBSL-3) To improve India’s preparedness for health emergencies and enhance its public health infrastructure, the Indian Council of Medical Research (ICMR) is expanding its fleet of Mobile Biosafety Level-3 laboratories. Key Features:
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THAAD Missile System During a recent 12-day conflict involving strikes on nuclear sites, the United States utilized 15–20% of its THAAD missile system resources to protect against Iranian aerial assaults. About THAAD:
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Discovery of Bacillus ayatagriensis Scientists at Raiganj University in West Bengal have discovered a new soil bacterium named Bacillus ayatagriensis. Key Characteristics:
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SPREE Scheme: Scheme to Promote Registration of Employers/Employees The Employees’ State Insurance Corporation (ESIC) has approved the relaunch of the SPREE Scheme, which will be active from July 1 to December 31, 2025. Key Highlights:
Benefits Under the 2025 Relaunch:
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Black-headed Caterpillar Disease (Opisina arenosella) The Chief Minister of Karnataka has requested a detailed report on the rising threat of Black-headed Caterpillar Disease affecting coconut plantations across the state. About the Disease:
Symptoms:
Control Measures:
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Aralam Butterfly Sanctuary – India’s First Butterfly-Dedicated Forest Reserve The Aralam Wildlife Sanctuary in Kannur district, Kerala has been officially renamed as the Aralam Butterfly Sanctuary, making it India’s first protected forest exclusively dedicated to butterflies. Key Features:
Ecological Significance:
Conservation and Research:
Other Fauna:
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Prada Acknowledges Indian Influence Behind New Footwear Design
· Italian luxury fashion house Prada has officially recognized that its Men’s Spring/Summer 2026 collection sandals were inspired by traditional Indian handcrafted footwear, known for its centuries-old legacy. · This acknowledgment came following widespread criticism for the uncited resemblance to India’s GI-tagged Kolhapuri chappals—a renowned form of leather footwear with deep cultural and artisanal roots in Maharashtra, India. · The controversy underscores growing concerns around cultural appropriation and the need for crediting indigenous craftsmanship in global fashion.
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