Daily Current Affairs 2025  

02/10/2025

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CA-02/10/2025

 
Why in news?
Britain is introducing a new nationwide digital ID card system, with mandatory enrollment for all citizens and legal residents who wish to work in the country, aiming to streamline government services and curb illegal employment.
 
Key Features and Implementation

• The digital ID will be required to prove the right to work; employers must check the digital ID of new hires as paper-based checks and National Insurance number validation will be removed from the process.
• It will also facilitate faster and easier access to government services like welfare benefits, tax records, driving licenses, and childcare, replacing multiple paper documents.
• The ID is stored securely on a mobile phone; there is no legal requirement to carry it all the time.

Policy Objectives

• Main goals include making it significantly harder for undocumented migrants to work and reducing identity fraud, while simultaneously simplifying access to essential public and private services for legal residents.
• The scheme mirrors digital ID concepts already in use in the NHS app and digital banking, with a focus on data security and privacy.

Public Debate and Concerns

• While polling now shows majority public support for national digital IDs, the move has reignited debates around privacy, surveillance, and data protection, given Britain’s history of resistance to compulsory ID cards after WWII.
• The government assures that the police will not have the power to randomly demand to see a citizen’s digital ID, and a robust consultation process is promised to address concerns.

 
 
   
Why in news?
GST 2.0 is having a tangible disinflationary effect on India's economy, with authorities and analysts highlighting several key outcomes.
 
RBI, Government, and Analyst Views

• The Reserve Bank of India stated that the rate cuts under GST 2.0 are leading to lower CPI prices, curbing inflation, and stimulating both consumption and growth.
• The RBI’s Monetary Policy Committee revised its FY26 inflation projection down to 2.6% from 3.1% in August, attributing the reduction to GST reforms and benign food prices.
• The Finance Ministry has echoed these sentiments, stating that the GST reforms are expected to lower inflation over the next year and support stronger growth while emphasizing continued vigilance against global risks.

Direct Consumer Impact and Enforcement

• The new two-slab GST regime (5% and 18%), implemented from September 22, 2025, has resulted in price reductions for a wide array of daily-use items, with about 11.4% of the CPI basket affected.
• Government agencies are closely monitoring retailers to ensure the benefits of GST cuts are being passed on to consumers, with special scrutiny on e-commerce platforms.
• Despite these positives, certain reports have highlighted that benefits may not be immediately or fully passed through in some sectors due to input tax credit changes and market rigidities.
• The GST rationalization, alongside favorable agricultural factors, is expected to keep food inflation contained and support lower headline inflation through 2026.

Economic and Policy Outlook

• Economists predict that lower GST rates will have a higher fiscal multiplier, encouraging private consumption and aiding economic recovery, particularly in rural and lower-income segments.
• However, the RBI and Finance Ministry caution that global volatility, trade disruptions, and commodity price changes remain risks to the inflation outlook despite the relief offered by GST 2.0.
• Immediate short-term inflation readings are substantially lower, with September-October 2025 CPI reportedly as low as 1.1% in some estimates, the lowest since 2004.

Economic Projections
 

Projection	Previous CPI (FY26)	New CPI (FY26)	GDP Growth (FY26)
RBI Estimate	3.1%	2.6%	6.8%
CareEdge	3.1%	2.7%	–

 
GST 2.0 is widely viewed as inflation-moderating, consumption-boosting, and likely to provide a sustained check on price levels in India through direct and indirect channels.
 
 
   
Why in news?

• Airbus and Tata Advanced Systems Limited (TASL) have announced the establishment of India's first private-sector helicopter final assembly line at Vemagal in Karnataka.
• This facility will produce the Airbus H125 helicopter, with the first "Made in India" units expected for delivery in early 2027.
• Both civil and military variants (the military version termed H125M) will be manufactured.
• The H125M will feature high levels of indigenous components and is targeted as a successor to the Cheetah and Chetak helicopters

Significance

• The H125 helicopter is globally regarded for its versatility, high-altitude performance (having landed on Mount Everest), and adaptability for roles ranging from law enforcement to tourism and emergency medical services.
• The assembly line marks a strategic step for "Atmanirbhar Bharat" in defense and aerospace, making India a producer as well as potential exporter of advanced chopper technologies.

Key features of the H125

• Single-engine turbine helicopter powered by a Safran Arriel 2D turboshaft engine.
• Capacity for 1 pilot + up to 6 passengers with flexible cabin configurations.
• Maximum Takeoff Weight (MTOW) of around 2,370 kg (5,225 lb).
• Fast cruise speed of approximately 136 knots (252 km/h).
• Range of about 340 nautical miles (630 km) and endurance of 4 hours 27 minutes.
• High altitude performance with hover ceilings up to 4,420 m (14,500 ft) in ground effect and 3,871 m (12,700 ft) out of ground effect.
• Widely recognized for its ruggedness, reliability, and multi-mission adaptability.

The H125 is popular in various environments, including high-altitude and hot conditions, making it ideal for Himalayan operations, border surveillance, disaster management, and tourism among other uses.
 
 
   
Why in news?
The firm warns India needs to nearly double its growth rate to 12.2% annually to adequately address underemployment and high youth unemployment, despite strong GDP growth of 7.8% in Q1 2025-26.  

Highlights of the report:
 
Urgent Growth Needed

• India needs an extraordinary 12.2% annual GDP growth rate to adequately tackle underemployment and the surge in youth joblessness.
• The current growth rate of around 7.8% (Q1 2025-26) is insufficient to absorb the 84 million new workers who will enter the labor market over the next decade.

Underemployment and Youth Unemployment

• Youth unemployment stands at 17.6%, the highest in South Asia.
• Underemployment is widespread, with many workers engaged in jobs that don't fully utilize their skills, education, or available hours.
• India's broad employment criteria include informal and unpaid labor, masking the gravity of underutilization in the workforce.

Employment Challenges

• There is a dual challenge in India: high unemployment and significant underemployment, particularly among youth.
• Agricultural sector employment has surged to a 17-year high, reflecting underemployment rather than productive jobs.
• Female youth unemployment is a major concern, with urban female youth unemployment soaring to 25.7%.

Structural Obstacles

• Weak industrial growth, limited export expansion, and rising US tariffs affect job creation prospects.
• The rise in US work visa costs for Indians limits international employment opportunities.
• Rapid automation and AI adoption threaten traditional service-sector jobs, especially for educated youth.

Socioeconomic Implications

• Around 603 million Indians live below the lower middle-income threshold, increasing the urgency for inclusive job growth.
• Failure to create adequate jobs risks social strains and may push the government to implement redistributive measures to maintain stability.

Required Reforms

• India must accelerate industrial and export growth, infrastructure development, and workforce reskilling.
• Manufacturing export jobs have important multiplier effects, creating additional jobs in transport and logistics.
• Despite India's large working-age population, its share in global exports is only 1.8%, indicating untapped potential for employment creation.

Morgan Stanley warns that without rapid and inclusive growth, India risks falling into a "jobs trap," undermining its position as an emerging global economic powerhouse and exacerbating youth unemployment issues.
 
 
   
Why in news?
The RBI has introduced new loan rules including several important changes aimed at enhancing borrower protection and responsible lending.
 
Key highlights are:

• A Loan-to-Income (LTI) ratio cap at 50%, meaning total EMIs (including new loans) cannot exceed half of the borrower's monthly income, with strict verification of existing debts by lenders.
• Increased risk-based capital requirements for lenders on unsecured personal loans, meaning banks and NBFCs need to hold higher capital against such loans.
• Emphasis on credit score-based loan approval, where loan amounts and interest rates are linked to the borrower's credit score.
• Introduction of the Key Fact Statement (KFS) for every loan, providing complete transparency on interest rates, fees, tenure, and penalties.
• Prohibition of pre-payment or foreclosure charges on floating interest rate loans for individual borrowers from January 1, 2026.
• Faster transmission of lending rate cuts to borrowers by removing a previous 3-year lock-in period on changes to loan spreads. Borrowers can also switch from floating to fixed interest rates at reset.
• Stricter eligibility and documentation requirements to ensure thorough assessment of repayment capacity.

These rules apply to personal loans from banks, NBFCs, digital lending platforms, and microfinance institutions, aiming to protect borrowers from excessive debt and improve transparency in the loan process.
  
 
   
Why in news?

• The Payments Regulatory Board (PRB) is a six-member board established by the Reserve Bank of India (RBI) to regulate and oversee the functioning of payment systems in India.
• It replaces the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) and derives its powers from the Payment and Settlement Systems Act, 2007.

Composition and Structure

• Chaired by the RBI Governor.
• Includes two other RBI representatives: the Deputy Governor and the Executive Director in charge of Payment and Settlement Systems.
• Three nominees from the Central Government who are experts in payment systems, IT, cybersecurity, and law.
• The RBI’s Principal Legal Adviser is a permanent invitee.
• Members serve a non-renewable four-year term.

Functions and Authority

• Regulates and supervises payment systems, including clearing corporations, card networks, ATM networks, prepaid payment instruments, and payment aggregators.
• Can make rules and give instructions to payment system operators to ensure efficiency, safety, and reliability.
• Supported by RBI’s Department of Payment and Settlement Systems (DPSS), which reports directly to the PRB.
• Decisions are taken by majority vote, with the chairperson having a casting vote in case of ties.
• Meets at least twice a year.

The PRB marks the first time the government has formal representation in regulatory oversight of India’s payment infrastructure, reflecting the growing importance and complexity of the digital payments ecosystem in India.
 

 
   
Why in news?

• The 4th edition of World Food India was held from September 25-28, 2025, at Bharat Mandapam, Pragati Maidan, New Delhi.
• It functions as a gateway to the Indian food economy and a dynamic platform to foster partnerships between Indian and global stakeholders across the entire food processing ecosystem.
• This includes manufacturers, producers, processors, investors, policymakers, technology providers, startups, logistics operators, and retailers.

Key Features of World Food India 2025

• Theme: Fostering innovation, sustainability, and future food trends.
• Exhibitions and Knowledge Sessions: Showcases innovations in food processing, food safety, packaging, cold chain logistics, and sustainability.
• Business Meetings: Facilitates B2B, B2G, and G2G collaborations, enabling investment and trade partnerships.
• Industry Roundtables and Conferences: Policy discussions and sector-specific seminars with global and domestic food industry leaders.
• Start-Up Grand Challenge: Spotlight on innovative technology solutions addressing challenges in food processing.
• Cultural Cuisine Experiences: Showcases India’s rich culinary heritage alongside global cuisines.
• International Participation: Numerous country pavilions, international delegations, and foreign buyers participate.

Significance:

• India, being the largest producer of many agricultural commodities and having a large workforce, is positioned as a promising global food hub.
• The event highlights India’s growing food processing sector and offers fiscal incentives and business environment benefits to attract foreign investment.
• It supports the government’s vision of transforming India into a global food basket while promoting food security and safety.

About World Food India

• World Food India is a strategic platform for connecting global food stakeholders and advancing India's food industry.
• India is a top global food producer and exporter, vital for world food security.
• The country is active in global partnerships for sustainable and resilient food systems.
• Indian cuisine's global popularity continues to grow, contributing to cultural and economic outreach.

World Food India is a crucial event, providing a comprehensive platform to explore the booming Indian food economy and future trends in food production and sustainability.
 
 
   
Why in news?
MONDIACULT 2025 is the UNESCO World Conference on Cultural Policies and Sustainable Development, held from September 29 to October 1, 2025, in Barcelona, Spain.
 
Key Highlights of MONDIACULT 2025

• Theme: "Culture as a Global Public Good and Driver of Sustainable Development."
• Objective: To establish culture as a stand-alone goal in the United Nations' post-2030 development agenda, recognizing its vital role in sustainable development and global peace.

Focus Areas and Themes

• Cultural rights
• Digital technologies in culture
• Culture and education
• Economy of culture
• Culture and climate action
• Culture, heritage, and crisis
• Special focus on culture for peace and artificial intelligence in culture.

India’s Role

• India's Minister of Culture, Gajendra Singh Shekhawat, chaired the Asia-Pacific Group and emphasized culture as a pillar for inclusive and sustainable development.
• India actively engaged in bilateral discussions on cultural cooperation and heritage conservation.

Next Host

• Saudi Arabia was announced as the host for MONDIACULT 2029.

Outcome

• Adoption of an outcome document reaffirming culture as a global public good and providing a roadmap for strengthening cultural policies and international cooperation.

 
 
   
Why in news?
INS Sutlej is arrived at Port Louis, Mauritius, on September 29, 2025, to undertake the 18th Joint Hydrographic Survey mission between India and Mauritius.

Key points

• INS Sutlej is a specialised hydrographic survey vessel of the Indian Navy built by Goa Shipyard Limited and commissioned in 1993.
• It operates under the Southern Naval Command and is currently based at Kochi.
• The ship is equipped with advanced surveying and navigation systems including multi-beam swath echo sounding systems, differential GPS, motion sensors, sea gravimeter, magnetometer, oceanographic sensors, side scan sonars, and an automated data logging system.
• These systems meet stringent international/ISO 9002 digital survey accuracy standards necessary for producing electronic navigation charts and publications.
• It carries a Chetak helicopter and four survey motorboats.

INS Sutlej has been actively involved in hydrographic surveys of various regions including the Indian coast, Lakshadweep Islands, Andaman and Nicobar Islands, Maldives, Myanmar, and in international maritime collaborations such as joint surveys with Mauritius.
 
 

   
Why in news?
The Electronics Components Manufacturing Scheme has received an overwhelming response from both domestic and international industry leaders.
 
About the scheme

• The Electronics Component Manufacturing Scheme (ECMS) is a major government initiative approved in 2025 with a budget of approximately Rs. 22,919 crore.
• It aims to develop a robust electronics component manufacturing ecosystem by attracting large domestic and global investments.
• The scheme targets increasing domestic value addition in electronic components and integrating Indian manufacturers into global value chains.

Key Features

• Focuses on manufacturing a wide range of electronic components including sub-assemblies, bare components, display modules, camera modules, multi-layer PCBs, lithium-ion cells, and other passive components like resistors and capacitors.
• Provides differentiated production-linked incentives tailored to various component categories to help manufacturers overcome industry-specific challenges.
• Offers three types of incentives: turnover-linked, capital expenditure (capex)-linked, and a hybrid model combining both.
• Employment generation is mandatory, emphasizing skilled job creation.
• The scheme has a tenure of six years with a one-year gestation period.

Targets and Impact

• Expected to attract investments of Rs. 59,350 crore, with actual applications received exceeding Rs. 1,15,000 crore already.
• Projected production value of Rs. 4,56,500 crore, with newer estimates going beyond Rs. 10,34,700 crore in the next six years.
• Aiming to generate approximately 91,600 direct jobs, with actual commitments suggesting up to 1,42,000 jobs.
• Expected to double local value addition in electronics manufacturing from the current 15-20% up to 35-40% within five years.

Strategic Importance

• Supports India's Atmanirbhar Bharat vision to reduce dependency on imports and create a self-reliant electronics supply chain.
• Complements other government policies like the Production-Linked Incentive (PLI) for Large Scale Electronics Manufacturing, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and Electronics Manufacturing Clusters (EMC).
• Encourages investment in both manufacturing and capital equipment to build a resilient and integrated electronics ecosystem in India.

This scheme is seen as a game-changer in boosting India's electronic component manufacturing sector, supporting innovation, enhancing production capacity, and creating significant employment opportunities.
 

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