Daily Current Affairs 01-September-2025

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INDIA, CHINA COMMIT TO FAIR BORDER SOLUTION

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

Prime Minister Narendra Modi met Chinese President Xi Jinping on the sidelines of the SCO Summit in Tianjin. Both leaders stressed maintaining peace at the border and agreed on working towards a fair and mutually acceptable solution.

Background of India China Border Dispute

  • India and China share a 3,488 km long border that is not clearly demarcated.
  • The boundary is divided into three sectors:
    • Western Sector (Ladakh) – Dispute over Aksai Chin, controlled by China but claimed by India.
    • Middle Sector (Himachal Pradesh and Uttarakhand) – Least contentious, but alignment issues remain.
    • Eastern Sector (Arunachal Pradesh) – China claims Arunachal as “South Tibet”.
  • Major flashpoints: 1962 war, Doklam standoff (2017), and Galwan clashes (2020).
  • Both nations have signed several agreements (1993, 1996, 2005, 2013) to maintain peace but incidents continue.

INDIA, CHINA COMMIT TO FAIR BORDER SOLUTION

Key Outcomes of the Meeting

  • Border Peace: Both sides expressed satisfaction with disengagement achieved in 2023. Reaffirmed commitment to peaceful management of the boundary question.
  • People-to-People Ties: Plans for direct flights and easier visa facilities. Revival of Kailash Mansarovar Yatra and tourist exchanges.
  • Economic and Trade Cooperation: Discussion on reducing trade deficit and encouraging balanced trade. Recognition that India–China economic cooperation can stabilise world trade amid U.S. tariff wars.
  • Counter-Terrorism Understanding: PM Modi said both India and China are victims of terrorism. Called for China’s support against cross-border terrorism. India highlighted the need for cooperation within the SCO framework.
  • Global and Regional Issues: Agreement to work together on multilateral platforms on issues like terrorism, fair trade, and development. Both reiterated strategic autonomy and opposed being influenced by third-country politics.

Other Bilateral Engagements

  • PM Modi also met Myanmar’s military leadership, assuring support for development under Neighbourhood First and Act East policies.
  • India underlined hope for fair elections in Myanmar and backed a Myanmar-led peace process.

Shanghai Cooperation Organisation (SCO)

  • Formation: Established in 2001 in Shanghai.
  • Members: 9 full members – China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Iran (joined in 2023).
  • Headquarters: Beijing, China.
  • Official Languages: Chinese and Russian.
  • Origin: Evolved from the Shanghai Five (1996) – China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan.

Main Objectives

  • Promote peace, security, and stability in the region.
  • Strengthen economic cooperation among members.
  • Counter terrorism, separatism, and extremism.

Conclusion

India and China signalled intent to manage differences through dialogue and cooperation, while reaffirming peace at the border as the foundation for better ties. Strengthening trade, people-to-people links, and counter-terrorism cooperation could give new momentum to bilateral relations, though long-standing border disputes remain the biggest challenge.

GOVT. ACTION PLAN FOR EXPORTERS AFFECTED BY U.S. TARIFFS

TOPIC: (GS3) ECONOMY: THE HINDU

The U.S. has raised tariffs on several Indian exports, creating a liquidity and compliance crisis for exporters. The Government of India has announced a short-, medium-, and long-term plan to provide relief and boost long-term competitiveness.

Background of the Issue

  • Tariff hikes by the U.S. have disrupted India’s export order cycle.
  • Exporters face delayed payments, cancellation of orders, and working capital stress.
  • Labour-intensive sectors and SEZ-based units are at higher risk of job losses.

Short-Term Measures

  • Liquidity Relief: Interest subvention, easier access to trade finance, and collateral support.
  • Compliance Support: Reduced procedural burden to help exporters sustain operations.
  • Employment Protection: Ensuring vulnerable sectors maintain order levels and jobs.
  • Tweaks to Export Promotion Mission: Aligning government schemes with current sectoral needs.

Tweaking Export Model

Key Schemes Proposed

  • Niryat Protsahan: Trade finance assistance through e-commerce export cards, interest support, and easier credit.
  • Niryat Disha: Market access measures like branding, packaging, and compliance assistance.
  • SEZ Flexibility: Adjustments in policy to help Special Economic Zones maintain production.

Medium- and Long-Term Strategy

  • Trade Diversification: Reducing dependence on a single country for export share.
  • Leveraging FTAs: Using existing Free Trade Agreements to widen market access.
  • Strategic Autonomy: Building resilience in key industries to withstand external shocks.
  • Digital Trade Infrastructure: Launch of BharatTradeNet for smoother digital export operations.

HOW TARIFFS AFFECT TRADE

What is a Tariff?

A tariff is a tax imposed by one country on goods imported from another country. It makes imported goods more expensive in the market of the country applying the tariff.

Effects on Trade

Reduced Demand for Imports

    • When tariffs increase prices, buyers in the importing country may buy fewer goods.
    • Example: If the U.S. puts a 20% tariff on Indian textiles, American buyers will find them costlier and may reduce purchases.

Loss for Exporters

    • Exporters in the affected country (India in this case) face fewer orders, delayed payments, or even cancelled contracts.
    • Their profit margins shrink, and some may suffer losses.

Shift to Alternatives

    • Importers often switch to cheaper suppliers from other countries not facing tariffs.
    • Example: Instead of Indian textiles, U.S. buyers may import from Vietnam or Bangladesh.

Impact on Jobs and Production

    • Lower exports reduce production in the exporting country.
    • This may affect workers’ jobs, especially in labour-intensive sectors like garments, toys, or leather.

Revenue for Importing Country

    • The country applying the tariff (U.S.) earns extra money from taxes, but consumers there also face higher prices.

Simple Example

  • Suppose India sells steel to the U.S. at ₹100 per unit.
  • The U.S. imposes a 25% tariff, making the steel cost ₹125 per unit in the American market.
  • U.S. buyers now find Indian steel expensive and may either:
    • Reduce imports from India, or
    • Buy cheaper steel from another country (say, Mexico).
  • Result: India’s steel exports fall, U.S. buyers pay more, and trade volume between India and the U.S. declines.

Conclusion

The government’s multi-layered action plan aims to shield exporters from immediate tariff shocks while building a stronger, diversified, and digitally enabled export base for the long run.

IMPORTANCE OF INDIA’S FEDERAL DESIGN AND J&K STATEHOOD

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Supreme Court has sought a detailed response from the Centre on restoring the statehood of Jammu and Kashmir, citing federal principles and citizens’ rights.

Background

  • The issue arises from the abrogation of Articles 370 and 35A in August 2019, which converted J&K from a State into a Union Territory.
  • Legislative Assembly elections were held in October 2024, but statehood has not yet been restored.
  • The case is being heard in Zahoor Ahmed Bhat vs. UT of J&K, emphasizing the federal character of India and separation of powers.

Current Status of J&K

  • Supreme Court directed restoration of statehood and holding of Legislative Assembly elections.
  • Elections have been conducted, but statehood is not yet restored.
  • Delay affects: Citizens’ rights. Federal balance between Centre and State. Powers of elected government vs. Lieutenant Governor.

Rationale Behind Delayed Restoration of Statehood to J&K

  • Security Concerns: J&K is a border-sensitive region with ongoing cross-border threats; central control via the Lieutenant Governor ensures better security and law enforcement.
  • Ground-Level Stability: Restoration is delayed until local governance, law and order, and peaceful conditions are ensured.
  • Administrative Transition: Moving from Union Territory to Statehood requires careful management of powers between the LG and elected government to avoid disruption.
  • Strategic and Political Considerations: The government balances national security, political stability, and long-term integration before granting full statehood.

CONSTITUTIONAL PROCESSES FOR CREATING STATES IN INDIA

Admission

  • Definition: Incorporating new political units into the territory of India.
  • Constitutional Reference: Article 2 – Parliament may admit new States into the Union of India.
  • Example: Jammu and Kashmir joined India in 1947 through the Instrument of Accession.

Establishment

  • Definition: Acquiring territory in accordance with international law and establishing it as a State.
  • Constitutional Reference: Article 2 also covers the power to establish new States through agreements with territories or countries.
  • Example:
    • Goa became a State after integration from Portuguese rule (1961).
    • Sikkim became a State in 1975 after merger with India.

Formation / Reorganisation

  • Article 3 – Parliament may:
    1. Form a new State by separating territory from any State.
    2. Unite two or more States or parts of States.
    3. Unite any territory to a part of any State.
    4. Increase or diminish the area of any State.
    5. Alter boundaries of any State.
    6. Alter the name of any State.
  • Restriction: Union cannot convert a State into a Union Territory arbitrarily, as it would violate federal principles.
  • Example:
    1. Reorganisation of States in 1956 (States Reorganisation Act).
    2. Jammu and Kashmir reorganisation under Jammu & Kashmir Reorganisation Act, 2019.

Federalism:

  • Federalism is a system of government in which powers are divided and shared between a central authority (Union) and regional units (States), each with its own jurisdiction and autonomy.

Key Features of Federalism:

  • Dual Government: There are two levels of government — the Union and the States — each functioning independently in their respective spheres.
  • Written Constitution: Powers, responsibilities, and boundaries of governments are clearly defined in a written constitution.
  • Division of Powers: Subjects of governance are divided into Union List, State List, and Concurrent List (as in India).
  • Supremacy of Constitution: Both Union and States derive their powers from the Constitution; neither can act beyond it.

India’s Federal Design

  • India is a Union of States: indivisible; States cannot secede.
  • Article 1: ‘Union’ emphasizes unitary character, while ‘Bharat’ reflects cultural unity.
  • Federalism ensures: Equitable distribution of resources. States’ representation at the national level through Rajya Sabha (Article 83).
  • The design balances strong Centre with State autonomy, making federal character part of the Basic Structure of the Constitution.

Conclusion:

India’s unique federal design ensures unity with diversity. Restoring Jammu and Kashmir’s statehood is crucial to maintain the sanctity of federation, citizens’ rights, and the balance of power between Centre and States.

TELANGANA PASSES BILLS FOR 42% QUOTA FOR BCS

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Telangana Assembly passed two amendment Bills to implement 42% reservation for Backward Classes (BCs) in local body elections. This comes while earlier Bills and an Ordinance on the same issue are still pending with the President of India for assent.

Key Highlights of the Bills

  • Bills Passed:
    • Telangana Municipalities (Third Amendment) Bill, 2025.
    • Telangana Panchayat Raj (Third Amendment) Bill, 2025.
  • Objective: To ensure proportional representation for BCs in local self-government institutions.
  • Basis: Reservation was decided after a socio-economic and caste survey covering all households.
  • Commission Setup: A dedicated panel studied BCs’ socio-economic, educational, and political conditions before recommending reservation proportion.

Importance of the Bills

  • Political Representation: Gives BC communities a stronger voice in decision-making at the grassroots.
  • Social Justice: Aligns with the principle of uplifting historically disadvantaged groups.
  • Scientific Backing: Unlike earlier attempts in other states, Telangana’s move is backed by survey data and commission findings.

Impact of the Bills

  • Positive Impact:
    • Empowers BC communities politically and socially.
    • Could improve representation in local governance and bring inclusive policies.
  • Concerns Raised:
    • Legal Hurdles: Total reservation (SC + ST + BC) may cross the 50% cap set by the Supreme Court in Indra Sawhney case (1992).
    • Pending Approval: Requires assent of the President, since similar moves earlier faced hurdles in Bihar and Madhya Pradesh.

RESERVATION IN INDIA

  • SCs and STs: Reservation based on population proportion.
  • OBCs/BCs: Reservation provided but subject to the overall 50% ceiling.
  • Current Levels:
    • SCs: 15% (Central).
    • STs: 7.5% (Central).
    • OBCs: 27% (Central, after Mandal Commission).

Some states (Tamil Nadu, Haryana, etc.) provide higher quotas under State laws

Basis of Reservation in India

  • Social and Educational Backwardness (not just economic).
  • Historical Disadvantage: Communities deprived of access to education, employment, and governance.
  • Scientific Data: Often determined by caste surveys, commissions, and socio-economic studies.

Constitutional Provisions on Reservation

  • Article 15(4) & 15(5): Special provisions for advancement of socially and educationally backward classes.
  • Article 16(4): Reservation in public employment.
  • Article 243D & 243T: Reservation in Panchayats and Municipalities.
  • Article 340: Appointment of Commissions to investigate backwardness (e.g., Mandal Commission).
  • 103rd Amendment (2019): Introduced 10% quota for Economically Weaker Sections (EWS).

Conclusion

The Telangana government’s move to provide 42% BC reservation in local bodies reflects an attempt to balance social justice with constitutional limits. While it empowers BCs politically, its implementation will depend on legal scrutiny and Presidential approval.

RISE IN MINI-CLOUDBURSTS: IMD

TOPIC: (GS1) GEOGRAPHY: THE HINDU

The India Meteorological Department (IMD) clarified that while there is no clear rise in cloudbursts, cases of mini-cloudbursts are increasing in India. This comes amid reports of heavy rains causing floods and damage in northern states.

What is a Cloudburst?

  • Definition: A cloudburst is a sudden, very heavy rainfall event — 10 cm or more in an hour over a small area (20–30 sq. km).
  • Mini-Cloudburst: Rainfall of around 5 cm in an hour in a limited area.
  • Key Features:
    • Very intense and localised.
    • Can cause flash floods, landslides, and severe damage.
    • Currently impossible to predict accurately due to their small scale.

Key Highlights from IMD

  • No rising trend in large-scale cloudbursts, but mini-cloudbursts are becoming more frequent.
  • September Rainfall Outlook: Expected to be above normal (about 9% higher than the seasonal average).
  • Monsoon Performance (June–August 2025):
    • Overall rainfall 6% above normal.
    • Northwest India: 26% more rainfall than average. Central India: 8.6% above normal.
    • Southern Peninsula: 9.3% above normal. East & Northeast India: 17% below normal.
    • More than 700 heavy rainfall events (20 cm+ per day) recorded in August, second only to 2024.

Reasons for Intense Rainfall

  • A mix of western disturbances (storms from the Mediterranean) and Bay of Bengal systems converging over northern India.
  • This led to repeated episodes of extreme rainfall in Himachal Pradesh, Uttarakhand, and Jammu & Kashmir, causing loss of lives and property.

WESTERN DISTURBANCES

Starting Point

  • Western Disturbances are low-pressure(WARM WATER REGION) weather systems.
  • They originate in the Mediterranean region (near Europe).
  • They move eastwards, carried by westerly winds into Central Asia, Afghanistan, Pakistan, and then into North India.

Impact in India

Winter Rainfall

    • Bring rain in north-western India (Punjab, Haryana, Rajasthan, Delhi, Uttar Pradesh).
    • Very important for Rabi crops (especially wheat and mustard).

Snowfall in the Himalayas

    • Cause snowfall in Jammu & Kashmir, Himachal Pradesh, and Uttarakhand.
    • Helps maintain glaciers and rivers (water source for northern plains).

Temperature Effect

    • Rainfall cools down the atmosphere during winters.
    • Can sometimes lead to cold waves in northern India.

Floods and Hailstorms

    • Excessive rainfall may damage crops.
    • Hailstorms sometimes destroy standing wheat and mustard crops.

Interaction with Monsoon

    • In summer (April–May), they can interact with monsoon winds and cause pre-monsoon thunderstorms (locally called Kalbaisakhi in West Bengal).

Western Disturbances start from the Mediterranean Sea and bring rainfall, snowfall, and storms to North and North-West India, helping crops but sometimes also damaging them.

Conclusion

India’s monsoon is showing a trend of heavier rainfall events, especially mini-cloudbursts and extreme downpours. While IMD forecasts show overall above-normal rainfall, the challenge remains in predicting and managing localised, destructive rain events.

DEEP-SEA EXPLORATION OFF POOMPUHAR COAST

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU

The Tamil Nadu State Department of Archaeology will begin underwater exploration this September between Poompuhar and Nagapattinam. The study aims to trace submerged remains and highlight Tamil Nadu’s maritime history.

About the Exploration

  • Conducted by: Tamil Nadu Archaeology Department with support from:
    • Indian Maritime University (IMU)
    • National Institute of Ocean Technology (NIOT)
    • National Institute of Oceanography (NIO)
  • Timeline: To begin in the second week of September 2025 (chosen due to favourable sea conditions).
  • Clearance: Proposals submitted to the Central Advisory Board of Archaeology.

Past Underwater Discoveries near Poompuhar

  • 1980s (NIO surveys): Detected structures at depths of 20–30 m.
  • 1990: Shipwreck discovered near Vanagiri (depth 19.5 m).
  • 1991–1993 explorations: Found brick formations and man-made structures underwater.
  • 2004 (INS Darshak survey): Identified a U-shaped structure at 23 m depth. Retrieved remains of a Dutch ship sunk by the British in the late 18th century.
  • Recently: ASI restarted underwater research off Mamallapuram coast after nearly 20 years.

Ancient indian history ports

Deep-Sea Exploration Programme:

  • Scientific study of submerged heritage, shipwrecks, seabed structures, and marine ecosystems.
  • Methods Used: Geophysical surveys (sonar, magnetometers). Diving and submersible studies. Remote sensing and seabed mapping.

Importance:

    • Helps trace ancient maritime trade and submerged settlements.
    • Preserves underwater cultural heritage.
    • Provides data on climate and sea-level changes in history.

HISTORICAL SIGNIFICANCE OF POOMPUHAR PORT

  • Also known as Kaveripoompattinam, it was the capital of the early Cholas.
  • Flourished as a major port city from Sangam age (early centuries CE).
  • Mentioned in Tamil epics like Silappatikaram and Manimekalai.
  • Known for trade with Southeast Asia, Rome, and other regions.
  • Declined due to floods, sea erosion, and invasions, with much of it believed to be submerged.
  • Nagapattinam nearby also grew into an important medieval maritime hub with international trade links.

Conclusion

The upcoming underwater survey between Poompuhar and Nagapattinam seeks to unlock valuable insights into Tamil Nadu’s maritime heritage. By combining modern deep-sea exploration techniques with historical research, the project may help reconstruct India’s ancient role in global trade networks and enrich our cultural understanding.

INDIA’S ECONOMIC GROWTH AND ENERGY RESILIENCE

TOPIC: (GS3) ECONOMY: THE HINDU

Recent analysis highlights India’s robust economic growth, energy security, and reform-driven development, showing resilience despite global challenges and skepticism about the country’s economic prospects

Economic Growth Overview

  • Q1 FY 2025-26 GDP growth: 7.8% (five-quarter high).
  • Sectoral growth: Manufacturing 7.7%, Construction 7.6%, Services ~9.3%.
  • Nominal GDP growth: 8.8%, reflecting rising consumption, investment, and efficient public infrastructure.
  • Global standing: 4th largest economy, fastest-growing major economy; projected to surpass Germany before 2030.
  • Contribution to world growth: Over 15% of incremental global growth; targeted to reach 20%.

Poverty Reduction and Inclusive Growth

  • 24.82 crore people moved out of multidimensional poverty (2013-14 to 2022-23).
  • Achieved through direct benefit transfers, access to bank accounts, clean fuel, health coverage, and tap water.
  • India’s model: democratic, consensus-driven, and digitally enabled, enabling faster implementation of reforms.

Energy Security and Development

  • India is the 3rd largest energy consumer, 4th largest refiner, and 4th largest LNG importer globally.
  • Refining capacity: 5.2 million barrels/day, aiming to exceed 400 million tonnes per annum by 2030.
  • Exploration acreage increased from 8% (2021) to 16% (2025), with OALP ensuring transparent bidding.
  • Gas pricing reforms incentivize deepwater and new wells.
  • Energy demand projected to double by 2047, accounting for nearly 25% of incremental global demand.

Energy Transition Initiatives

  • Ethanol blending: From 1.5% (2014) to 20% today, saving ₹1.25 lakh crore in forex.
  • Compressed biogas: 300+ plants under rollout; target 5% blending by 2028.
  • Green hydrogen: Promoted by public sector units.

Global Compliance and Market Stability

  • India’s purchase of Russian crude under G-7/EU price cap is fully compliant with international norms.
  • Maintains stable domestic fuel prices via tax cuts and mandated domestic sales by refiners.
  • Petroleum exports: Long-standing global supplier; no profiteering from current geopolitical conditions.

Industrial and Digital Growth

  • Focus on semiconductors, electronics, renewables, defense, specialty chemicals.
  • Production-Linked Incentives (PLI) and Gati Shakti logistics enhance industrial competitiveness.
  • Digital infrastructure: UPI and startups boost productivity, formalisation, and exports.

Way Forward

  • Projections: By 2038, India may become 2nd largest economy (PPP), with GDP > $34 trillion.
  • Growth model emphasizes democracy, inclusivity, and human capital development.
  • India’s strategy: Combine reforms, energy security, and technology adoption to sustain rapid and inclusive growth.

Conclusion:

India’s economy demonstrates strong growth, inclusive development, and energy resilience, supported by reforms, infrastructure, and digitalisation, positioning it as a key global economic player.

RISING SEA LEVELS IN MALDIVES, LAKSHADWEEP, AND INDIAN OCEAN

TOPIC: (GS3) ENVIRONMENT: THE HINDU

A recent study using coral microatolls shows that sea levels around the Maldives, Lakshadweep, and Chagos Archipelago have been rising faster than previously thought, starting from the late 1950s.

Background

  • Global warming is causing thermal expansion of oceans and ice-melt, contributing to rising sea levels.
  • Low-lying island nations like the Maldives and Lakshadweep are highly vulnerable to even small increases in sea level.
  • Historical tide gauge records were limited in the central tropical Indian Ocean.

What are Coral Microatolls?

  • Coral microatolls are disk-shaped coral colonies whose upward growth stops at the lowest tide.
  • The upper surface of microatolls reflects historical lowest water levels.
  • Can live decades to centuries, preserving climate and sea-level history.
  • Scientists can extract annual growth bands similar to tree rings to reconstruct sea-level changes.

Coral Microatolls

Study Details

  • Conducted at Mahutigalaa reef, Huvadhoo Atoll, Maldives.
  • Methods used:
    • Measuring and sampling coral structure.
    • X-raying slabs to study annual growth bands.
    • Uranium-thorium dating to determine historical elevation.
  • Data covered 1930–2019.

Key Findings

  • Sea level rose ~0.3 metres over 90 years in the region.
  • Rise began in the late 1950s, earlier than previous assumptions (~1990).
  • Current rate: ~4 mm/year over the last 20–30 years.
  • Historical climate events such as El Niño and negative Indian Ocean Dipole (IOD) slowed coral growth.
  • Lunar nodal cycle influenced tides and microatoll growth.
  • Tectonic stability at study sites ensured accurate sea-level reconstruction.

Implications

  • Maldives, Lakshadweep, and other low-lying islands are at high risk of flooding and erosion.
  • Coral reefs face stress from sea-level rise, reduced sunlight penetration, and bleaching.
  • Findings help improve projections of sea-level rise and guide adaptation strategies for vulnerable coastal regions.
  • Microatolls provide valuable long-term data complementing tide gauges and satellites.

Conclusion:

Coral microatoll studies reveal that sea levels in the central Indian Ocean have been rising faster and earlier than previously thought, highlighting the urgent need for coastal adaptation and protection strategies.

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