G.K.

THE HINDU - COMPREHENSIVE CURRENT AFFAIRS- 05 October 2025

By Team Newsynque

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THE HINDU - COMPREHENSIVE CURRENT AFFAIRS- 05 October 2025
British PM to visit India on October 8 | Sonam Wangchuk case in Supreme Court | Air India Terminal Shift at Delhi Airport | India-China Direct Flights ...

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British PM to visit India on October 8 | Sonam Wangchuk case in Supreme Court | Air India Terminal Shift at Delhi Airport | India-China Direct Flights Resume | RBI MPC Meeting Updates

Introduction

Welcome to today's comprehensive current affairs analysis for October 5, 2025. Today's news landscape is dominated by significant diplomatic developments with the upcoming visit of the British Prime Minister to India on October 8, marking an important milestone in India-UK bilateral relations. The Supreme Court is scheduled to hear the Sonam Wangchuk case, bringing environmental activism and Ladakh's concerns to the judicial forefront. In the aviation sector, Air India announces a major operational restructuring at Delhi's Indira Gandhi International Airport with terminal relocations affecting 60 domestic flights. On the international front, India and China are resuming direct flights after a five-year hiatus, signaling a thaw in bilateral relations. The Reserve Bank of India's Monetary Policy Committee meeting continues to be in focus as experts debate the repo rate decision amid inflation concerns. Additionally, weather patterns across multiple states are expected to change significantly. Today's analysis will help you understand these developments in depth, connecting them to relevant concepts, policies, and exam-relevant topics.

1. NATIONAL NEWS

1.1 Air India Terminal Restructuring at Delhi Airport

Headline: Air India relocates 60 domestic departures to upgraded Terminal 2 at Delhi's Indira Gandhi International Airport, while Air India Express moves all domestic operations to renovated Terminal 1.

Context & Background: Indira Gandhi International Airport (IGIA) in Delhi is India's busiest airport and a major hub for both domestic and international aviation. The airport has three terminals - Terminal 1 (T1) for low-cost carriers and domestic flights, Terminal 2 (T2) which was earlier used but later consolidated, and Terminal 3 (T3) which is the largest and handles most international flights. After the merger of Air India and Vistara, and the integration of Air India Express into the Tata Group's aviation portfolio, operational restructuring became necessary to optimize terminal usage and passenger experience. The Civil Aviation Ministry and airport authorities have been working on upgrading terminal facilities to handle increasing passenger traffic, which crossed 73 million in 2024.

Key Concepts:

  • Terminal: A building at an airport where passengers transfer between ground transportation and the facilities that allow them to board and disembark from aircraft. Each terminal has check-in counters, security checks, boarding gates, and baggage claim areas.
  • Air India: The flag carrier airline of India, owned by Tata Group (since 2022 after privatization). It operates domestic and international flights and was merged with Vistara in 2024.
  • Air India Express: A low-cost subsidiary of Air India that primarily operates short and medium-haul international routes and domestic flights.
  • Airport Authority of India (AAI): A statutory body under the Ministry of Civil Aviation responsible for creating, upgrading, maintaining, and managing civil aviation infrastructure in India.
  • Indira Gandhi International Airport (IGIA): Located in Delhi, it is India's largest and busiest airport by passenger traffic, serving as a major hub for both domestic and international travel. It has three operational terminals.

Significance & Exam Relevance:

  • Infrastructure development and optimization is a key topic in General Studies papers, especially relating to transportation and connectivity.
  • Aviation sector reforms, including privatization of Air India, airport modernization, and UDAN scheme implementation are frequently asked in prelims and mains.
  • Questions on India's major airports, their locations, and passenger traffic statistics are common in competitive exams.
  • Public-private partnership models in infrastructure development, especially in aviation, is relevant for governance and policy questions.
  • Passenger facilitation measures and ease of doing business in aviation sector connects to economic development topics.

Stakeholders:

  • Air India and Air India Express (Tata Group)
  • Delhi International Airport Limited (DIAL) - the private operator of IGIA
  • Directorate General of Civil Aviation (DGCA) - regulatory authority
  • Airport Authority of India (AAI)
  • Ministry of Civil Aviation, Government of India
  • Passengers using Delhi airport (over 200,000 daily passengers)
  • Other airlines operating from Delhi airport
  • Ground handling agencies and airport service providers

Impact & Implications:

  • Operational Efficiency: The restructuring will optimize terminal usage, reduce congestion, and improve passenger flow management at India's busiest airport.
  • Passenger Experience: Upgraded Terminal 2 facilities will provide better amenities and services to Air India passengers, while Terminal 1 renovation benefits Air India Express travelers.
  • Integration Benefits: Post-merger consolidation of Tata Group airlines demonstrates synergies being achieved after the Air India-Vistara merger.
  • Economic Impact: Better terminal management can improve airport efficiency, reduce delays, and enhance India's position as a global aviation hub.
  • Employment: Terminal upgrades and increased operations create employment opportunities in aviation, hospitality, and allied sectors.
  • Tourism Boost: Improved airport infrastructure supports India's tourism sector by providing better first-impression experiences for international visitors.
  • Regional Connectivity: Efficient hub operations at Delhi strengthen connectivity to other Indian cities and international destinations.

2. POLITICS & GOVERNANCE

2.1 British Prime Minister's Visit to India - October 8, 2025

Headline: The British Prime Minister is scheduled to visit India on October 8, 2025, marking a significant diplomatic engagement between the two nations.

Context & Background: India and the United Kingdom share a unique relationship stemming from historical ties during the British colonial period (1757-1947) and continuing through modern strategic, economic, and cultural partnerships. The UK was one of India's largest trading partners in Europe, and the Indian diaspora in Britain (approximately 1.8 million people) forms the largest visible ethnic minority group. The India-UK Enhanced Trade Partnership was launched in 2021, and negotiations for a Free Trade Agreement have been ongoing since January 2022. Post-Brexit, the UK has been looking to strengthen its "Global Britain" strategy, with India being a key partner in the Indo-Pacific region. Previous high-level visits include Prime Minister Narendra Modi's visits to UK and reciprocal visits by British Prime Ministers. The bilateral trade between India and UK stood at approximately $20 billion in 2024.

Key Concepts:

  • Bilateral Relations: Diplomatic, economic, and political relationships between two sovereign nations. These relations are governed by mutual treaties, agreements, and diplomatic protocols.
  • Free Trade Agreement (FTA): A treaty between two or more countries to facilitate trade by reducing or eliminating tariffs, quotas, and other trade barriers. India is negotiating FTAs with several countries including UK, EU, and Australia.
  • Enhanced Trade Partnership: A framework agreement that aims to reduce barriers to trade and investment between countries through sector-specific negotiations before concluding a comprehensive FTA.
  • Commonwealth Nations: A political association of 56 member states, mostly former territories of the British Empire. India is a prominent member and the visit occurs within this broader framework of cooperation.
  • Indo-Pacific Strategy: A geopolitical framework focusing on the strategic importance of the Indian and Pacific Ocean regions. Both India and UK are key players in ensuring a free, open, and inclusive Indo-Pacific.
  • Diaspora Diplomacy: Leveraging overseas populations to strengthen bilateral relations, cultural ties, and economic cooperation. The Indian diaspora in UK plays a significant role in India-UK relations.

Significance & Exam Relevance:

  • India-UK relations are a crucial topic in International Relations section of UPSC, State PSC mains, and General Awareness sections of banking exams.
  • Questions on India's bilateral relationships with major powers, FTA negotiations, and trade statistics are common in prelims and mains exams.
  • Commonwealth and its significance, especially India's role, is a standard topic in polity and international relations.
  • Brexit and its implications for India-UK trade relations can be asked in essay and mains papers.
  • Historical background of India-UK relations, including the colonial period, independence movement, and post-independence diplomatic ties, is relevant for history and international relations papers.
  • Indo-Pacific geopolitics, QUAD, and UK's role in the region are emerging topics in current affairs and security studies.

Stakeholders:

  • Government of India - Ministry of External Affairs, Ministry of Commerce and Industry
  • Government of United Kingdom - Foreign, Commonwealth and Development Office, Department for Business and Trade
  • Indian Prime Minister Narendra Modi and British Prime Minister
  • Business communities in both countries - CII, FICCI, Confederation of British Industry
  • Indian diaspora in the United Kingdom (approximately 1.8 million people)
  • Educational institutions - collaborations in research and student exchange programs
  • Defense establishments of both nations
  • Technology and innovation sectors focusing on partnerships

Impact & Implications:

  • Trade Boost: The visit could accelerate the India-UK FTA negotiations, potentially increasing bilateral trade from $20 billion to $50 billion by 2030.
  • Defense Cooperation: Enhanced collaboration in defense manufacturing, joint exercises, and maritime security in the Indian Ocean Region.
  • Technology Partnerships: Strengthening cooperation in emerging technologies like artificial intelligence, quantum computing, and green technology.
  • Educational Exchange: Increased student mobility, research collaborations, and recognition of academic qualifications between the two nations.
  • Climate Action: Both nations can collaborate on renewable energy, climate finance, and meeting their respective net-zero commitments.
  • Geopolitical Significance: Strengthening the India-UK partnership contributes to a multipolar world order and balances China's growing influence in the Indo-Pacific.
  • Migration and Mobility: Potential easing of visa regulations for skilled workers, students, and professionals, benefiting both economies.

2.2 Sonam Wangchuk Case in Supreme Court

Headline: The Supreme Court of India is scheduled to hear the case involving environmental activist Sonam Wangchuk, focusing on Ladakh's constitutional and environmental concerns.

Context & Background: Sonam Wangchuk is a renowned engineer, innovator, and education reformist from Ladakh who gained international recognition for his work in sustainable development and alternative education models. He inspired the character "Phunsukh Wangdu" in the Bollywood film "3 Idiots." In recent years, Wangchuk has been at the forefront of a movement demanding constitutional safeguards for Ladakh, particularly the inclusion of the region under the Sixth Schedule of the Constitution. After Ladakh was separated from Jammu & Kashmir and granted Union Territory status in August 2019 (following the abrogation of Article 370), concerns arose about land rights, environmental protection, employment reservation for locals, and cultural preservation. The Leh Apex Body and Kargil Democratic Alliance have been demanding statehood for Ladakh, inclusion in the Sixth Schedule, separate Lok Sabha seats for Leh and Kargil districts, and a public service commission for local recruitment. Wangchuk undertook a 21-day climate fast in January 2024 and later a "pashmina march" to Delhi in 2024 to highlight these issues.

Key Concepts:

  • Sixth Schedule: A provision in the Indian Constitution (Articles 244(2) and 275(1)) that provides for the administration of tribal areas in Assam, Meghalaya, Tripura, and Mizoram. It grants autonomous councils powers over land, forests, and local governance to protect tribal culture and identity.
  • Union Territory (UT): A type of administrative division in India that is directly ruled by the Central Government through an Administrator or Lieutenant Governor. UTs have limited legislative powers compared to states. Ladakh became a UT in 2019.
  • Article 370: A temporary provision in the Indian Constitution that granted special autonomous status to Jammu and Kashmir. It was abrogated on August 5, 2019, and J&K was reorganized into two UTs - J&K and Ladakh.
  • Environmental Activism: Social movement aimed at protecting the environment, promoting sustainability, and advocating for policies that preserve natural resources and ecological balance.
  • Public Interest Litigation (PIL): A legal action initiated in a court of law for the protection of public interest or general interest of the people. The Supreme Court has been liberal in admitting PILs on environmental and tribal rights issues.
  • Land Rights and Domicile Protection: Legal mechanisms to ensure that local populations have exclusive or preferential rights over land ownership, employment, and business opportunities in their region.

Significance & Exam Relevance:

  • Constitutional provisions like Sixth Schedule, Fifth Schedule, and special category status for hill states are important for UPSC Prelims and Mains (Polity and Governance).
  • Article 370 abrogation, reorganization of J&K, and formation of Ladakh UT is a major current affairs topic with constitutional, political, and administrative dimensions.
  • Environmental protection in ecologically sensitive areas, particularly in Himalayan regions, is relevant for Environment & Ecology, Geography, and General Studies papers.
  • Tribal rights, cultural preservation, and autonomous councils are crucial topics for social issues, polity, and governance sections.
  • Public Interest Litigation and judicial activism in environmental matters is important for understanding the role of judiciary in governance.
  • Regional aspirations for statehood, constitutional safeguards, and local governance are relevant for federalism and Centre-State relations topics.

Stakeholders:

  • Sonam Wangchuk - Environmental activist and petitioner
  • Supreme Court of India - Judicial body hearing the case
  • People of Ladakh - approximately 290,000 residents, including Buddhist majority in Leh and Muslim majority in Kargil
  • Leh Apex Body and Kargil Democratic Alliance - civil society organizations representing local demands
  • Government of India - Ministry of Home Affairs (responsible for UT administration)
  • Lieutenant Governor of Ladakh - administrative head of the UT
  • Ministry of Environment, Forest and Climate Change - concerned with ecological protection of the Himalayan region
  • Ministry of Tribal Affairs - relevant for Sixth Schedule demands
  • Local traders, business community, and youth concerned about employment and economic opportunities

Impact & Implications:

  • Constitutional Framework: If the Supreme Court orders inclusion of Ladakh under the Sixth Schedule, it would set a precedent for other regions demanding similar constitutional safeguards and could require parliamentary legislation.
  • Environmental Protection: Ladakh's fragile Himalayan ecosystem, already vulnerable to climate change, could receive stronger legal protection through autonomous council powers over land and forests.
  • Local Empowerment: Granting autonomous status would enable local communities to make decisions about resource management, tourism policies, and development projects without excessive central intervention.
  • Cultural Preservation: Constitutional safeguards could help protect Ladakh's unique Buddhist-Muslim cultural heritage, traditional practices, and linguistic identity from demographic changes.
  • Land Rights: Preventing non-Ladakhis from purchasing land would address local concerns about displacement and loss of control over resources, similar to provisions in Himachal Pradesh and Uttarakhand.
  • Political Ramifications: The case touches upon sensitive issues of federalism, autonomy, and the balance between national security considerations and local democratic aspirations.
  • Development Model: The outcome could influence whether Ladakh follows a rapid industrialization path or a sustainable, eco-tourism-based development model.

3. INTERNATIONAL RELATIONS & DIPLOMACY

3.1 India-China Resume Direct Flights After 5 Years

Headline: India and China agree to resume direct flight operations after a five-year suspension, marking a significant step in the normalization of bilateral relations between the two Asian giants.

Context & Background: Direct flight connectivity between India and China was suspended in early 2020 due to the COVID-19 pandemic. However, even after international air travel resumed globally, India-China flights remained suspended due to the deteriorating bilateral relationship following the Galwan Valley clash in June 2020, which resulted in casualties on both sides. This violent border confrontation led to the worst India-China relations in decades. The standoff in eastern Ladakh continued with both countries deploying tens of thousands of troops along the Line of Actual Control (LAC). Multiple rounds of military and diplomatic talks were held, with some disengagement achieved in areas like Pangong Tso and Gogra-Hot Springs. Prior to the suspension, there were approximately 42-45 weekly flights between India and China operated by Air India, IndiGo, Air China, China Eastern, and China Southern. In 2019, before the suspension, around 800,000 passengers traveled between the two countries annually. The decision to resume flights comes amid changing global geopolitical dynamics, particularly with the Trump administration's tariff policies affecting both nations.

Key Concepts:

  • Line of Actual Control (LAC): The de facto border between India and China, approximately 3,488 km long, stretching from Ladakh in the west to Arunachal Pradesh in the east. Unlike the Line of Control with Pakistan, the LAC is not clearly demarcated, leading to differing perceptions and occasional standoffs.
  • Bilateral Air Services Agreement (ASA): A treaty between two countries that grants airlines the right to operate scheduled flights between specific airports in each country. These agreements specify routes, number of flights, designated airlines, and operational terms.
  • Galwan Valley Clash (June 2020): A violent face-off between Indian and Chinese troops in the Galwan Valley of Ladakh that resulted in casualties on both sides (20 Indian soldiers martyred and casualties on Chinese side, though exact numbers not disclosed by China). This was the first deadly clash between the two armies in 45 years.
  • Disengagement: In military terms, the process of withdrawing troops and military assets from confrontation points along a disputed border, typically following negotiations between the two countries' military commanders.
  • Passenger Traffic: The number of people traveling by air between two countries, an important indicator of people-to-people contacts, business relations, tourism, and overall bilateral relationship health.
  • Geopolitical Thaw: The easing of tensions and improvement in relations between countries that were previously in a state of diplomatic or military standoff.

Significance & Exam Relevance:

  • India-China relations is one of the most important topics for UPSC Mains (International Relations), covering historical border disputes, economic ties, and strategic competition.
  • LAC, border disputes, Galwan clash, and military disengagement are frequently asked in prelims (current affairs) and mains (security issues) exams.
  • Aviation agreements, bilateral air connectivity, and their impact on trade and tourism are relevant for economy and international relations sections.
  • Geopolitical shifts, particularly in the context of US-China trade tensions and their impact on India, are important for understanding contemporary international relations.
  • Regional organizations like BRICS, SCO (Shanghai Cooperation Organisation), where both India and China are members, and how bilateral tensions affect multilateral cooperation.
  • Economic dimensions: India-China trade (despite tensions, bilateral trade exceeds $100 billion), trade deficit concerns, and impact of flight connectivity on business relations.

Stakeholders:

  • Ministry of External Affairs (MEA), Government of India
  • Ministry of Foreign Affairs, People's Republic of China
  • Directorate General of Civil Aviation (DGCA), India
  • Civil Aviation Administration of China (CAAC)
  • Indian carriers: Air India, IndiGo, and potentially others seeking China routes
  • Chinese carriers: Air China, China Eastern Airlines, China Southern Airlines
  • Business communities in both countries, particularly in manufacturing, technology, and pharmaceutical sectors
  • Indian students in China (though numbers have decreased from peak of 23,000 in 2019)
  • Tourism industry professionals in both countries
  • Chinese workers and professionals in India and vice versa
  • Families with cross-border connections

Impact & Implications:

  • Economic Benefits: Restoration of direct flights will facilitate business travel, reduce travel time and costs (currently passengers must transit through third countries like Thailand or Singapore), and potentially boost bilateral trade which stood at approximately $118 billion in 2023-24.
  • Tourism Recovery: Before the suspension, approximately 300,000 Indian tourists visited China annually, while about 250,000 Chinese tourists came to India. Direct flights could revive this sector.
  • People-to-People Contacts: Enhanced connectivity will improve cultural exchanges, academic collaborations, and family reunions, contributing to better understanding between the two civilizations.
  • Strategic Signaling: The decision to resume flights indicates both governments' willingness to compartmentalize issues – maintaining border tensions separately from economic and people-to-people ties.
  • Regional Stability: Improved India-China relations contribute to overall stability in Asia, which is crucial given both are nuclear powers with 2.8 billion people and significant economic weight.
  • Geopolitical Context: The thaw comes amid US-China tensions and high tariffs imposed by the Trump administration, suggesting both Asian giants may be seeking to reduce dependence on Western markets and strengthen regional ties.
  • Military Standoff: While flight resumption is positive, it doesn't necessarily indicate complete resolution of border tensions. Both countries maintain significant military deployments along the LAC.
  • Aviation Sector: Indian and Chinese airlines will benefit from restored routes, with potential for increased frequency over time if demand recovers to pre-pandemic levels.

4. ECONOMY & FINANCE

4.1 RBI Monetary Policy Committee (MPC) Meeting - October 2025

Headline: The Reserve Bank of India's Monetary Policy Committee is holding its crucial October 2025 meeting, with market participants and economists closely watching for decisions on repo rate amid inflation concerns and GDP growth considerations.

Context & Background: The Reserve Bank of India's Monetary Policy Committee is a six-member body responsible for formulating monetary policy in India. Established under the RBI Act, 1934 (amended in 2016), the MPC includes three members from RBI (including the Governor who is the chairperson) and three external members appointed by the Central Government. The committee meets at least four times a year (bi-monthly) to assess macroeconomic conditions and decide the policy interest rate (repo rate) needed to achieve the inflation target. India follows an inflation-targeting framework with a target of 4% CPI inflation with a tolerance band of +/- 2% (i.e., 2-6%). The current repo rate stands at 5.5% (as maintained since February 2023). The Indian economy has been experiencing robust growth with GDP expanding at 6.5% in FY 2024-25, but inflation concerns persist, particularly in food prices. Global factors like crude oil prices, US Federal Reserve policy decisions, and geopolitical tensions also influence RBI's policy stance.

Key Concepts:

  • Monetary Policy Committee (MPC): A statutory body under the RBI Act that determines the policy interest rate to maintain price stability while keeping growth objectives in mind. Decisions are taken by majority vote, with the Governor having a casting vote in case of a tie.
  • Repo Rate: The rate at which the Reserve Bank of India lends money to commercial banks. When RBI increases repo rate, borrowing becomes expensive, reducing money supply and controlling inflation. Conversely, lowering repo rate makes credit cheaper, stimulating economic activity.
  • Consumer Price Index (CPI) Inflation: A measure of the average change over time in the prices paid by consumers for a basket of goods and services. It is the principal inflation measure that RBI targets. CPI includes food, fuel, housing, clothing, healthcare, education, and other categories.
  • Reverse Repo Rate: The rate at which RBI borrows money from commercial banks. It is currently 3.35%, which is 2.15% below the repo rate. This rate influences how much liquidity banks park with RBI rather than lending to the economy.
  • Gross Domestic Product (GDP): The total monetary value of all goods and services produced within a country's borders in a specific time period. India's GDP growth is a key indicator of economic health and influences RBI's policy decisions.
  • Inflation Targeting: A monetary policy framework where a central bank has an explicit target inflation rate and uses policy tools (mainly interest rates) to achieve that target. India adopted this framework in 2016.
  • Liquidity Management: RBI's actions to ensure adequate money supply in the banking system to meet credit demands while controlling inflation. Tools include repo rate, cash reserve ratio (CRR), and open market operations.

Significance & Exam Relevance:

  • Monetary policy, RBI's functions, and instruments of monetary control are core topics for UPSC Prelims and Mains (Economy), SSC, and Banking exams.
  • Inflation measurement (CPI vs WPI), causes, effects, and control measures are frequently asked in all competitive exams.
  • Repo rate, reverse repo rate, CRR, SLR, and other monetary policy tools are standard questions in banking exams and UPSC economy paper.
  • RBI's structure, Governor's role, MPC composition, and decision-making process are important for understanding Indian financial system.
  • Relationship between inflation, interest rates, and economic growth (Phillips Curve concept) is relevant for theory-based questions.
  • Impact of global factors (crude oil prices, US Fed policy, geopolitical events) on Indian monetary policy demonstrates interconnected global economy.
  • Recent economic data like GDP growth rate, inflation rate, fiscal deficit are must-know statistics for current affairs sections.

Stakeholders:

  • Reserve Bank of India - Monetary Policy Committee (6 members including Governor Sanjay Malhotra)
  • Commercial Banks - both public and private sector banks whose lending and deposit rates are influenced by policy rate changes
  • Borrowers - individuals and businesses seeking loans for homes, vehicles, business expansion, etc.
  • Depositors and Savers - people with savings accounts, fixed deposits whose returns are affected by interest rate changes
  • Government of India - Ministry of Finance, concerned with fiscal-monetary policy coordination
  • Stock Market Investors - equity markets react significantly to MPC decisions and policy stance
  • Bond Market Participants - government securities and corporate bond yields are directly impacted
  • Common Citizens - affected through changes in EMIs, cost of living, and employment opportunities
  • Rating Agencies - Moody's, S&P, Fitch that assess India's economic health and creditworthiness
  • Foreign Portfolio Investors (FPIs) - who make investment decisions based on interest rate differentials and economic outlook

Impact & Implications:

  • Interest Rate Scenario: If RBI maintains repo rate at 5.5% (status quo expected by most analysts), it indicates a balanced approach between supporting growth and controlling inflation. EMIs on existing floating-rate loans remain unchanged.
  • Inflation Management: With food inflation showing persistence, maintaining a steady policy rate helps RBI monitor evolving price trends without prematurely tightening monetary conditions.
  • Growth Support: India's GDP growth of 6.5% in FY25 (as per estimates) remains robust, and unchanged rates continue to provide supportive financial conditions for investment and consumption.
  • Banking Sector: Banks' net interest margins (NIMs) remain stable with unchanged policy rates. However, they may adjust lending rates based on liquidity conditions and competitive pressures.
  • Housing and Auto Sectors: Status quo on rates provides relief to these interest-sensitive sectors which were concerned about potential rate hikes that would increase EMI burdens on consumers.
  • Currency Impact: RBI's policy stance, compared to other central banks (especially US Federal Reserve), influences foreign capital flows and Rupee exchange rate. A stable rate differential may support capital inflows.
  • Fiscal-Monetary Coordination: RBI's monetary policy works in tandem with Government's fiscal policy. Maintaining accommodative monetary conditions supports government's growth agenda while fiscal consolidation continues.
  • Regional Variations: Some states experiencing higher inflation may face continued price pressures, while manufacturing and export sectors benefit from stable credit costs.

4.2 India's Economic Outlook and Growth Trajectory

Headline: India maintains its position as the fastest-growing major economy with 6.5% GDP growth in FY 2024-25, supported by strong domestic demand and government capital expenditure, despite global uncertainties.

Context & Background: India's economic journey post-independence has been remarkable, evolving from a predominantly agrarian economy to a diversified economy with significant contributions from services, manufacturing, and agriculture. After economic liberalization in 1991, India opened up to global trade and investment, leading to accelerated growth. Despite global challenges including the COVID-19 pandemic (2020-21), supply chain disruptions, and geopolitical tensions, India has emerged as a resilient economy. The country's GDP crossed $3.7 trillion in 2024, making it the world's fifth-largest economy. The government's focus on infrastructure development through initiatives like PM Gati Shakti, production-linked incentive (PLI) schemes for manufacturing, and digital transformation has contributed to sustained growth. Major international organizations like the IMF, World Bank, and Asian Development Bank project India to be the fastest-growing major economy in 2025-26 as well. According to NITI Aayog, India has lifted 248 million people out of multidimensional poverty between 2015-16 and 2022-23.

Key Concepts:

  • Social Welfare: Government programs and policies designed to ensure minimum standard of living, reduce inequality, and provide support to vulnerable sections of society. These include subsidies, cash transfers, and in-kind benefits.
  • Direct Benefit Transfer (DBT): A system of transferring government subsidies and benefits directly to beneficiaries' bank accounts, eliminating intermediaries and reducing corruption. Launched in 2013, it has saved over ₹3 lakh crore by preventing leakages.
  • JAM Trinity: Integration of Jan Dhan (bank accounts), Aadhaar (biometric ID), and Mobile (connectivity) to enable effective delivery of government benefits and financial inclusion.
  • MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): Launched in 2005, guarantees 100 days of wage employment per year to rural households, providing livelihood security and creating rural assets.
  • Ayushman Bharat: World's largest health insurance scheme launched in 2018, providing health coverage up to ₹5 lakh per family per year to over 50 crore beneficiaries from economically vulnerable sections.
  • PM-KISAN (Pradhan Mantri Kisan Samman Nidhi): Launched in 2019, provides income support of ₹6,000 per year in three installments to all landholding farmer families to supplement their financial needs.
  • Multidimensional Poverty Index (MPI): Developed by UNDP and Oxford University, measures poverty beyond income, considering health, education, and standard of living indicators.

Significance & Exam Relevance:

  • Government welfare schemes, their objectives, implementation, and outcomes are frequently asked in UPSC Prelims (Current Affairs) and Mains (Governance, Social Justice).
  • Constitutional provisions for social justice (Articles 38, 39, 41-43, 46, 47) in Directive Principles are important for polity questions.
  • Poverty measurement methods, poverty line concepts, and India's poverty reduction achievements are crucial for economy and social development topics.
  • Comparison of different welfare models (universal vs targeted, cash transfers vs in-kind) is relevant for policy analysis questions.
  • Digital governance, technology in welfare delivery (DBT, Aadhaar), and their impact are emerging topics in mains exams.
  • Financial inclusion, banking schemes (Jan Dhan, Mudra, Stand-Up India), and their role in empowerment are important for banking exams and UPSC.
  • Challenges in implementation, issues of exclusion, and suggestions for improvement are relevant for answer writing in mains.

Stakeholders:

  • Ministry of Rural Development - implements MGNREGA, rural housing, and rural roads
  • Ministry of Health and Family Welfare - Ayushman Bharat and health schemes
  • Ministry of Agriculture - PM-KISAN and farmer welfare schemes
  • NITI Aayog - policy think tank monitoring SDG progress and scheme evaluation
  • State Governments - implementing and co-funding centrally sponsored schemes
  • Banks and post offices - disbursing benefits through DBT
  • Beneficiaries - farmers, BPL families, pregnant women, children, elderly, disabled
  • Gram Panchayats and local bodies - grassroots implementation
  • Civil Society Organizations and NGOs - monitoring and creating awareness
  • UIDAI (Unique Identification Authority of India) - Aadhaar services

Impact & Implications:

  • Poverty Reduction: Comprehensive welfare schemes have contributed to reducing multidimensional poverty from 29.17% in 2013-14 to 11.28% in 2022-23, lifting 248 million people out of poverty.
  • Financial Inclusion: Jan Dhan Yojana has opened over 50 crore bank accounts, bringing unbanked populations into the formal financial system and enabling access to credit and insurance.
  • Health Access: Ayushman Bharat has provided over 7 crore hospital admissions worth more than ₹80,000 crore, reducing out-of-pocket health expenditure for poor families.
  • Rural Income: MGNREGA provides employment to crores during agricultural lean season, with over 300 crore person-days generated annually, supporting rural livelihoods.
  • Women Empowerment: Schemes like Beti Bachao Beti Padhao, maternity benefits, and priority in bank accounts have improved gender equality indicators.
  • Food Security: National Food Security Act covering 67% population ensures subsidized food grains, reducing malnutrition and hunger.
  • Digital Transformation: DBT and JAM trinity have modernized governance, reduced corruption, and improved efficiency in benefit delivery, saving government resources.
  • Farmer Support: PM-KISAN has transferred over ₹2.8 lakh crore directly to 11 crore farmer families since 2019, providing crucial income support.
  • Housing: PM Awas Yojana has constructed over 3 crore houses, providing shelter security to homeless and inadequately housed families.
  • Challenges: Issues remain including exclusion errors (genuine beneficiaries left out), inclusion errors (ineligible persons receiving benefits), implementation gaps, and need for better targeting.

QUICK FACTS & REVISION NOTES

Category Key Facts
British PM Visit Date: October 8, 2025 | Significance: Strengthening India-UK ties post-Brexit | Focus areas: Trade, defense, technology | FTA negotiations ongoing since 2022
Air India Terminal Shift 60 domestic departures moved to Terminal 2 | Air India Express to Terminal 1 | Delhi IGIA - India's busiest airport | Operated by DIAL (Delhi International Airport Limited)
Ladakh Issue Activist: Sonam Wangchuk | Demand: Sixth Schedule status | Population: ~290,000 | UT since August 2019 | Key demands: Land rights, statehood, PSC
India-China Flights Suspended since: 2020 | Reason: COVID-19 + Galwan clash | LAC length: 3,488 km | Pre-pandemic: 42-45 weekly flights | Passengers (2019): 800,000 annually
RBI MPC Members: 6 (3 RBI + 3 external) | Meetings: Minimum 4 per year | Current Repo Rate: 5.5% | Inflation Target: 4% (+/- 2%) | Governor: Sanjay Malhotra
India's GDP Growth Rate FY25: 6.5% | Size: $3.7 trillion (2024) | World Rank: 5th largest | Sectors: Services 57%, Industry 25%, Agriculture 18%
ISRO Missions Gaganyaan: Human spaceflight mission | Astronauts: 3 to 400 km orbit | Chandrayaan-3: Successful Moon landing (Aug 2023) | Future: Indian Space Station by 2035
Climate Commitments Net Zero target: 2070 | Renewable energy: 500 GW by 2030 | Paris Agreement signatory | NAPCC: 8 missions | IMD established: 1875
Welfare Schemes DBT savings: ₹3 lakh crore+ | Poverty reduction: 248 million (2015-22) | Ayushman Bharat: 50 crore beneficiaries, ₹5 lakh coverage | MGNREGA: 100 days employment guarantee
Important Abbreviations LAC: Line of Actual Control | MPC: Monetary Policy Committee | CPI: Consumer Price Index | PLI: Production Linked Incentive | NAPCC: National Action Plan on Climate Change

IMPORTANT DATES TO REMEMBER

Date Event/Significance
October 5, 2025 Today's current affairs date
October 8, 2025 British Prime Minister's scheduled visit to India
August 5, 2019 Abrogation of Article 370, Ladakh became Union Territory
June 15, 2020 Galwan Valley clash between India-China
August 23, 2023 Chandrayaan-3 successful Moon landing
2016 Monetary Policy Committee formed, Inflation targeting framework adopted
2015 Paris Agreement on Climate Change adopted
2021 India announced Net Zero by 2070 target at COP26 Glasgow
January 2022 India-UK FTA negotiations began
2013 Direct Benefit Transfer (DBT) system launched

CONCEPT-WISE MCQs FOR PRACTICE

Question Answer
Q1: Which Schedule of the Indian Constitution deals with administration of tribal areas? Answer: Sixth Schedule (covers tribal areas in Assam, Meghalaya, Tripura, and Mizoram)
Q2: What is India's inflation targeting range under the flexible inflation targeting framework? Answer: 4% with a tolerance band of +/- 2% (i.e., between 2% to 6%)
Q3: When did Ladakh become a Union Territory? Answer: August 5, 2019 (following reorganization of Jammu & Kashmir)
Q4: What is the length of the Line of Actual Control (LAC) between India and China? Answer: Approximately 3,488 kilometers
Q5: How many members constitute the RBI's Monetary Policy Committee? Answer: 6 members (3 from RBI including Governor + 3 external members appointed by Government)
Q6: What is the full form of IGIA? Answer: Indira Gandhi International Airport (located in Delhi)
Q7: When was Chandrayaan-3 successfully landed on the Moon? Answer: August 23, 2023 (landed on Moon's south polar region)
Q8: What is India's Net Zero emission target year? Answer: 2070 (announced at COP26 Glasgow in 2021)
Q9: What does JAM Trinity stand for in the context of welfare delivery? Answer: Jan Dhan (bank accounts) + Aadhaar (biometric ID) + Mobile (connectivity)
Q10: How many days of employment does MGNREGA guarantee per household per year? Answer: 100 days of wage employment to rural households

SECTOR-WISE IMPORTANT POINTS

Aviation Sector

  • India's aviation sector is world's third largest domestic aviation market
  • UDAN scheme (Ude Desh ka Aam Naagrik) for regional connectivity launched in 2016
  • DGCA (Directorate General of Civil Aviation) is the regulatory body
  • Air India privatized in 2022, acquired by Tata Group
  • Merged with Vistara in 2024 for operational synergies
  • Airport Authority of India (AAI) manages 137 airports across India
  • Private operators manage major airports through PPP model

Monetary Policy

  • Repo Rate: Rate at which RBI lends to banks (currently 5.5%)
  • Reverse Repo Rate: Rate at which RBI borrows from banks (3.35%)
  • Cash Reserve Ratio (CRR): Percentage of deposits banks must keep with RBI (4.5%)
  • Statutory Liquidity Ratio (SLR): Percentage of deposits banks must invest in government securities (18%)
  • Bank Rate: Long-term lending rate by RBI (currently 5.75%)
  • Marginal Standing Facility (MSF): Emergency lending facility for banks (5.75%)
  • Open Market Operations (OMO): Buying/selling government securities to manage liquidity

India-UK Relations

  • Bilateral trade: Approximately $20 billion (2024)
  • Indian diaspora in UK: 1.8 million (largest ethnic minority)
  • Both are Commonwealth members
  • UK is 6th largest investor in India with cumulative FDI of $32 billion
  • Enhanced Trade Partnership launched in 2021
  • Key sectors: IT, pharmaceuticals, automobiles, defense, education
  • Historical ties: UK ruled India from 1757-1947
  • Brexit (2020) opened new opportunities for India-UK bilateral trade

Space Technology

  • ISRO established: 1969 by Dr. Vikram Sarabhai
  • First satellite: Aryabhata (1975), launched by Soviet Union
  • First indigenous satellite launch: Rohini (1980) using SLV-3
  • Mars Orbiter Mission (Mangalyaan): First Asian nation to reach Mars (2014)
  • Cost-effective missions: Chandrayaan-3 cost ₹615 crore vs NASA's $100+ billion programs
  • Commercial launches: Over 400 foreign satellites launched
  • NavIC: 7 satellites providing regional navigation coverage
  • Future missions: Gaganyaan (human spaceflight), Shukrayaan (Venus), Chandrayaan-4

Climate and Environment

  • India ranks 4th globally in renewable energy capacity (180+ GW)
  • Solar capacity target: 280 GW by 2030
  • Wind capacity target: 140 GW by 2030
  • International Solar Alliance (ISA) headquarters in India
  • Forest cover: 21.71% of geographical area (2021 report)
  • Major environmental laws: EPA 1986, Forest Conservation Act 1980, Wildlife Protection Act 1972
  • Panchamrit commitments at COP26: Net Zero 2070, 50% renewable energy by 2030, reduce carbon intensity by 45%
  • National missions: Solar, water, agriculture, Himalayan ecosystem, green India, sustainable habitat

LINKING CONCEPTS - HOW NEWS CONNECTS TO SYLLABUS

British PM Visit connects to:

  • History: British colonial rule in India, independence movement, partition
  • Polity: Diplomatic relations, treaty-making powers (Article 73, 253)
  • International Relations: Bilateral relations, FTA negotiations, Commonwealth
  • Economy: Trade agreements, FDI, trade deficit/surplus concepts
  • Geography: UK location, Brexit and European Union

Sonam Wangchuk Case connects to:

  • Polity: Sixth Schedule, Fifth Schedule, Union Territories, Article 370
  • Geography: Himalayan region, Ladakh geography, cold desert
  • Environment: Fragile ecosystems, climate change in mountains
  • Social Issues: Tribal rights, cultural preservation, local empowerment
  • Current Affairs: J&K reorganization, regional aspirations

India-China Flights connects to:

  • International Relations: India-China border dispute, LAC, confidence building
  • Geography: Himalayan borders, Galwan Valley, Pangong Tso
  • History: 1962 war, Panchsheel Agreement, boundary disputes
  • Security: Military standoffs, disengagement, national security
  • Economy: Bilateral trade, trade deficit with China, tourism

RBI MPC connects to:

  • Economy: Monetary policy, inflation, interest rates, banking
  • Polity: RBI Act 1934, autonomy of central bank, government-RBI relations
  • Current Affairs: Economic indicators, fiscal policy coordination
  • Banking: Repo rate impact on lending, EMIs, deposit rates

ISRO Missions connect to:

  • Science & Technology: Space technology, satellite applications, rocket science
  • Economy: Space economy, commercial launches, technology exports
  • International Relations: Space cooperation, technology transfer
  • Geography: Remote sensing applications, weather forecasting
  • Security: Strategic satellites, surveillance capabilities

ANSWER WRITING TIPS BASED ON TODAY'S NEWS

For Mains Questions:

  • Structure: Always start with introduction (define key terms), body (multiple dimensions with examples), conclusion (way forward/suggestions)
  • Use Data: Include statistics like "India-UK trade $20 billion," "248 million lifted out of poverty," "LAC 3,488 km"
  • Multiple Dimensions: Cover political, economic, social, environmental, strategic aspects
  • Examples: Cite schemes (MGNREGA, Ayushman Bharat), organizations (ISRO, RBI), cases (Galwan clash)
  • Balanced View: Present both positive impacts and challenges/concerns
  • Flowcharts/Diagrams: Use for explaining processes (MPC decision-making, DBT flow)
  • Constitutional/Legal Provisions: Mention relevant Articles (Article 370, Sixth Schedule)

Sample Question on Today's News:

Q: "Discuss the significance of resuming direct flights between India and China in the context of improving bilateral relations. What challenges remain in normalizing India-China ties?" (250 words)

Approach:

  • Introduction: Brief about India-China relations and flight suspension background
  • Significance: Economic benefits, people-to-people contacts, confidence building, tourism recovery, strategic signaling
  • Remaining Challenges: LAC standoff, trust deficit, trade imbalance, geopolitical competition, different perceptions of border
  • Conclusion: Need for multi-track engagement - military talks, diplomatic dialogue, economic cooperation

IMPORTANT TERMS EXPLAINED

Aviation Terms:

  • Terminal: Airport building for passenger processing (check-in, security, boarding)
  • Domestic vs International: Flights within country vs to foreign destinations
  • Hub Airport: Major airport serving as connection point (Delhi, Mumbai are hubs)
  • Code Sharing: Two airlines sharing same flight with different flight numbers
  • Bilateral Air Services Agreement: Treaty between two countries for flight operations

Economic Terms:

  • Monetary Policy: Central bank's actions to manage money supply and interest rates
  • Fiscal Policy: Government's use of taxation and spending to influence economy
  • Inflation: Sustained increase in general price level of goods and services
  • GDP Growth: Percentage increase in economic output year-on-year
  • Current Account Deficit: When import payments exceed export earnings
  • FDI (Foreign Direct Investment): Investment by foreign entities in Indian businesses

Constitutional Terms:

  • Union Territory: Administrative division directly ruled by Central Government
  • Sixth Schedule: Constitutional provision for autonomous tribal councils
  • Directive Principles: Guidelines for governance (Articles 36-51), not enforceable in court
  • PIL (Public Interest Litigation): Legal action for public interest, relaxed standing rules
  • Statutory Body: Organization created by Act of Parliament (like RBI, SEBI)

Environmental Terms:

  • Climate Change: Long-term shifts in temperature and weather patterns
  • Net Zero: Balancing greenhouse gas emissions with removal
  • Renewable Energy: Energy from sources that naturally replenish (solar, wind)
  • Carbon Footprint: Total greenhouse gas emissions caused by individual/organization
  • Sustainable Development: Development meeting present needs without compromising future generations

COMPARATIVE ANALYSIS

Aspect India China
GDP Growth (2025) 6.5% ~4.5-5%
Population ~1.43 billion (largest) ~1.41 billion
Space Programs Chandrayaan, Gaganyaan, cost-effective Tiangong Space Station, more advanced
Democracy World's largest democracy Single-party communist state
Net Zero Target 2070 2060
Aspect India United Kingdom
GDP Size $3.7 trillion (5th largest) $3.1 trillion (6th largest)
Population 1.43 billion 68 million
Bilateral Trade $20 billion (growing, FTA under negotiation)
Historical Ties UK ruled India 1757-1947, Commonwealth members
Diaspora 1.8 million Indians in UK ~100,000 British in India

STATE-WISE RELEVANCE

For State PSC Aspirants:

  • Ladakh/J&K candidates: Focus on UT status, Sixth Schedule demand, border issues, tourism impact
  • Delhi candidates: Airport infrastructure, air quality, being national capital (diplomatic visits)
  • Himalayan states (HP, Uttarakhand, Sikkim): Climate change impact, glacial melting, similar demands for environmental protection
  • All states: Central schemes (MGNREGA, Ayushman Bharat, PM-KISAN) are implemented across India
  • Coastal states: Climate change, sea level rise, cyclone management by IMD

PRELIMS FOCUS POINTS

  • Who is Sonam Wangchuk? (Answer: Engineer, innovator, education reformer from Ladakh)
  • When was Ladakh made UT? (Answer: August 5, 2019)
  • Current RBI Governor? (Answer: Sanjay Malhotra)
  • Repo rate? (Answer: 5.5%)
  • India's GDP growth FY25? (Answer: 6.5%)
  • When did Chandrayaan-3 land? (Answer: August 23, 2023)
  • India's Net Zero target year? (Answer: 2070)
  • Galwan Valley clash year? (Answer: June 2020)
  • MPC members? (Answer: 6 - 3 RBI + 3 external)
  • MGNREGA employment days? (Answer: 100 days per household per year)

MAINS FOCUS AREAS

  • GS Paper 1: India-UK historical relations, impact of colonization, cultural ties
  • GS Paper 2: Constitutional provisions (Sixth Schedule, UT status), welfare schemes, governance, India's bilateral relations
  • GS Paper 3: Economic growth, monetary policy, space technology, climate change, disaster management, aviation sector
  • GS Paper 4: Ethics in governance, transparency in welfare delivery, environmental ethics
  • Essay: Technology and development, India's growth story, climate crisis, regional aspirations

CONCLUSION

Today's current affairs present a comprehensive picture of India's multifaceted development journey and its evolving position in global affairs. The scheduled visit of the British Prime Minister on October 8 underscores India's growing strategic importance and the strengthening of ties with traditional partners in a multipolar world. The resumption of India-China direct flights, despite ongoing border tensions, demonstrates pragmatic diplomacy and the need to compartmentalize different aspects of bilateral relations.

The Sonam Wangchuk case in the Supreme Court brings to focus the delicate balance between development aspirations and environmental conservation, particularly in ecologically sensitive regions like Ladakh. It raises fundamental questions about federalism, tribal rights, and constitutional safeguards that remain relevant for India's diverse society. The operational restructuring at Delhi's Indira Gandhi International Airport reflects the dynamism of India's aviation sector and the ongoing efforts to improve infrastructure for better passenger experience.

On the economic front, the RBI's Monetary Policy Committee meeting continues to navigate the complex challenge of maintaining price stability while supporting robust economic growth of 6.5%. India's position as the fastest-growing major economy provides opportunities for job creation, poverty alleviation, and improved living standards, though challenges of inflation and regional disparities persist.

The continued advancement of India's space program, particularly the upcoming Gaganyaan mission, showcases the country's scientific and technological capabilities. Combined with ambitious climate commitments including Net Zero by 2070 and renewable energy targets, India is positioning itself as a responsible global power balancing growth with sustainability.

The comprehensive implementation of social welfare schemes - from MGNREGA to Ayushman Bharat to PM-KISAN - demonstrates the government's focus on inclusive development. The success in lifting 248 million people out of multidimensional poverty between 2015-2023 is a significant achievement, though ensuring that benefits reach the last mile remains an ongoing challenge.

For Competitive Exam Aspirants: Today's news provides valuable material across all sections - Polity (constitutional provisions, UT status), Economy (monetary policy, GDP growth), International Relations (India-UK ties, India-China relations), Environment (climate change), Science & Technology (space missions), and Social Issues (welfare schemes). The key to effective preparation is not just reading these developments but understanding their interconnections, analyzing multiple dimensions, and being able to present balanced arguments in both prelims and mains examinations.

Study Strategy: Make concise notes of key facts, statistics, and dates. Practice writing answers connecting multiple topics (for example, linking climate change to farmer welfare, or space technology to economic development). Regularly revise important schemes, their objectives, and implementation status. Stay updated with follow-up developments on these issues in coming days. Most importantly, develop the ability to analyze news critically - understanding not just what happened, but why it matters and what its implications are for governance, development, and society.

Remember: Current affairs is not isolated from static syllabus. Every news item connects to history, geography, polity, economy, environment, or science & technology that you've studied. The key is making these connections and presenting them effectively in your answers. Keep reading quality newspapers, make regular notes, and practice answer writing to excel in competitive examinations.

Best wishes for your preparation!

Stay Updated | Read Daily | Make Notes | Practice Questions | Connect Concepts | Think Analytically | Write Effectively | Success Awaits!

Daily Current Affairs Blog - October 5, 2025

For UPSC, SSC, Banking, State PSC & All Competitive Exams

British PM to visit India on October 8 | Sonam Wangchuk case in Supreme Court | Air India Terminal Shift at Delhi Airport | India-China Direct Flights Resume | RBI MPC Meeting Updates

Introduction

Welcome to today's comprehensive current affairs analysis for October 5, 2025. Today's news landscape is dominated by significant diplomatic developments with the upcoming visit of the British Prime Minister to India on October 8, marking an important milestone in India-UK bilateral relations. The Supreme Court is scheduled to hear the Sonam Wangchuk case, bringing environmental activism and Ladakh's concerns to the judicial forefront. In the aviation sector, Air India announces a major operational restructuring at Delhi's Indira Gandhi International Airport with terminal relocations affecting 60 domestic flights. On the international front, India and China are resuming direct flights after a five-year hiatus, signaling a thaw in bilateral relations. The Reserve Bank of India's Monetary Policy Committee meeting continues to be in focus as experts debate the repo rate decision amid inflation concerns. Additionally, weather patterns across multiple states are expected to change significantly. Today's analysis will help you understand these developments in depth, connecting them to relevant concepts, policies, and exam-relevant topics.

1. NATIONAL NEWS

1.1 Air India Terminal Restructuring at Delhi Airport

Headline: Air India relocates 60 domestic departures to upgraded Terminal 2 at Delhi's Indira Gandhi International Airport, while Air India Express moves all domestic operations to renovated Terminal 1.

Context & Background: Indira Gandhi International Airport (IGIA) in Delhi is India's busiest airport and a major hub for both domestic and international aviation. The airport has three terminals - Terminal 1 (T1) for low-cost carriers and domestic flights, Terminal 2 (T2) which was earlier used but later consolidated, and Terminal 3 (T3) which is the largest and handles most international flights. After the merger of Air India and Vistara, and the integration of Air India Express into the Tata Group's aviation portfolio, operational restructuring became necessary to optimize terminal usage and passenger experience. The Civil Aviation Ministry and airport authorities have been working on upgrading terminal facilities to handle increasing passenger traffic, which crossed 73 million in 2024.

Key Concepts:

  • Terminal: A building at an airport where passengers transfer between ground transportation and the facilities that allow them to board and disembark from aircraft. Each terminal has check-in counters, security checks, boarding gates, and baggage claim areas.
  • Air India: The flag carrier airline of India, owned by Tata Group (since 2022 after privatization). It operates domestic and international flights and was merged with Vistara in 2024.
  • Air India Express: A low-cost subsidiary of Air India that primarily operates short and medium-haul international routes and domestic flights.
  • Airport Authority of India (AAI): A statutory body under the Ministry of Civil Aviation responsible for creating, upgrading, maintaining, and managing civil aviation infrastructure in India.
  • Indira Gandhi International Airport (IGIA): Located in Delhi, it is India's largest and busiest airport by passenger traffic, serving as a major hub for both domestic and international travel. It has three operational terminals.

Significance & Exam Relevance:

  • Infrastructure development and optimization is a key topic in General Studies papers, especially relating to transportation and connectivity.
  • Aviation sector reforms, including privatization of Air India, airport modernization, and UDAN scheme implementation are frequently asked in prelims and mains.
  • Questions on India's major airports, their locations, and passenger traffic statistics are common in competitive exams.
  • Public-private partnership models in infrastructure development, especially in aviation, is relevant for governance and policy questions.
  • Passenger facilitation measures and ease of doing business in aviation sector connects to economic development topics.

Stakeholders:

  • Air India and Air India Express (Tata Group)
  • Delhi International Airport Limited (DIAL) - the private operator of IGIA
  • Directorate General of Civil Aviation (DGCA) - regulatory authority
  • Airport Authority of India (AAI)
  • Ministry of Civil Aviation, Government of India
  • Passengers using Delhi airport (over 200,000 daily passengers)
  • Other airlines operating from Delhi airport
  • Ground handling agencies and airport service providers

Impact & Implications:

  • Operational Efficiency: The restructuring will optimize terminal usage, reduce congestion, and improve passenger flow management at India's busiest airport.
  • Passenger Experience: Upgraded Terminal 2 facilities will provide better amenities and services to Air India passengers, while Terminal 1 renovation benefits Air India Express travelers.
  • Integration Benefits: Post-merger consolidation of Tata Group airlines demonstrates synergies being achieved after the Air India-Vistara merger.
  • Economic Impact: Better terminal management can improve airport efficiency, reduce delays, and enhance India's position as a global aviation hub.
  • Employment: Terminal upgrades and increased operations create employment opportunities in aviation, hospitality, and allied sectors.
  • Tourism Boost: Improved airport infrastructure supports India's tourism sector by providing better first-impression experiences for international visitors.
  • Regional Connectivity: Efficient hub operations at Delhi strengthen connectivity to other Indian cities and international destinations.

2. POLITICS & GOVERNANCE

2.1 British Prime Minister's Visit to India - October 8, 2025

Headline: The British Prime Minister is scheduled to visit India on October 8, 2025, marking a significant diplomatic engagement between the two nations.

Context & Background: India and the United Kingdom share a unique relationship stemming from historical ties during the British colonial period (1757-1947) and continuing through modern strategic, economic, and cultural partnerships. The UK was one of India's largest trading partners in Europe, and the Indian diaspora in Britain (approximately 1.8 million people) forms the largest visible ethnic minority group. The India-UK Enhanced Trade Partnership was launched in 2021, and negotiations for a Free Trade Agreement have been ongoing since January 2022. Post-Brexit, the UK has been looking to strengthen its "Global Britain" strategy, with India being a key partner in the Indo-Pacific region. Previous high-level visits include Prime Minister Narendra Modi's visits to UK and reciprocal visits by British Prime Ministers. The bilateral trade between India and UK stood at approximately $20 billion in 2024.

Key Concepts:

  • Bilateral Relations: Diplomatic, economic, and political relationships between two sovereign nations. These relations are governed by mutual treaties, agreements, and diplomatic protocols.
  • Free Trade Agreement (FTA): A treaty between two or more countries to facilitate trade by reducing or eliminating tariffs, quotas, and other trade barriers. India is negotiating FTAs with several countries including UK, EU, and Australia.
  • Enhanced Trade Partnership: A framework agreement that aims to reduce barriers to trade and investment between countries through sector-specific negotiations before concluding a comprehensive FTA.
  • Commonwealth Nations: A political association of 56 member states, mostly former territories of the British Empire. India is a prominent member and the visit occurs within this broader framework of cooperation.
  • Indo-Pacific Strategy: A geopolitical framework focusing on the strategic importance of the Indian and Pacific Ocean regions. Both India and UK are key players in ensuring a free, open, and inclusive Indo-Pacific.
  • Diaspora Diplomacy: Leveraging overseas populations to strengthen bilateral relations, cultural ties, and economic cooperation. The Indian diaspora in UK plays a significant role in India-UK relations.

Significance & Exam Relevance:

  • India-UK relations are a crucial topic in International Relations section of UPSC, State PSC mains, and General Awareness sections of banking exams.
  • Questions on India's bilateral relationships with major powers, FTA negotiations, and trade statistics are common in prelims and mains exams.
  • Commonwealth and its significance, especially India's role, is a standard topic in polity and international relations.
  • Brexit and its implications for India-UK trade relations can be asked in essay and mains papers.
  • Historical background of India-UK relations, including the colonial period, independence movement, and post-independence diplomatic ties, is relevant for history and international relations papers.
  • Indo-Pacific geopolitics, QUAD, and UK's role in the region are emerging topics in current affairs and security studies.

Stakeholders:

  • Government of India - Ministry of External Affairs, Ministry of Commerce and Industry
  • Government of United Kingdom - Foreign, Commonwealth and Development Office, Department for Business and Trade
  • Indian Prime Minister Narendra Modi and British Prime Minister
  • Business communities in both countries - CII, FICCI, Confederation of British Industry
  • Indian diaspora in the United Kingdom (approximately 1.8 million people)
  • Educational institutions - collaborations in research and student exchange programs
  • Defense establishments of both nations
  • Technology and innovation sectors focusing on partnerships

Impact & Implications:

  • Trade Boost: The visit could accelerate the India-UK FTA negotiations, potentially increasing bilateral trade from $20 billion to $50 billion by 2030.
  • Defense Cooperation: Enhanced collaboration in defense manufacturing, joint exercises, and maritime security in the Indian Ocean Region.
  • Technology Partnerships: Strengthening cooperation in emerging technologies like artificial intelligence, quantum computing, and green technology.
  • Educational Exchange: Increased student mobility, research collaborations, and recognition of academic qualifications between the two nations.
  • Climate Action: Both nations can collaborate on renewable energy, climate finance, and meeting their respective net-zero commitments.
  • Geopolitical Significance: Strengthening the India-UK partnership contributes to a multipolar world order and balances China's growing influence in the Indo-Pacific.
  • Migration and Mobility: Potential easing of visa regulations for skilled workers, students, and professionals, benefiting both economies.

2.2 Sonam Wangchuk Case in Supreme Court

Headline: The Supreme Court of India is scheduled to hear the case involving environmental activist Sonam Wangchuk, focusing on Ladakh's constitutional and environmental concerns.

Context & Background: Sonam Wangchuk is a renowned engineer, innovator, and education reformist from Ladakh who gained international recognition for his work in sustainable development and alternative education models. He inspired the character "Phunsukh Wangdu" in the Bollywood film "3 Idiots." In recent years, Wangchuk has been at the forefront of a movement demanding constitutional safeguards for Ladakh, particularly the inclusion of the region under the Sixth Schedule of the Constitution. After Ladakh was separated from Jammu & Kashmir and granted Union Territory status in August 2019 (following the abrogation of Article 370), concerns arose about land rights, environmental protection, employment reservation for locals, and cultural preservation. The Leh Apex Body and Kargil Democratic Alliance have been demanding statehood for Ladakh, inclusion in the Sixth Schedule, separate Lok Sabha seats for Leh and Kargil districts, and a public service commission for local recruitment. Wangchuk undertook a 21-day climate fast in January 2024 and later a "pashmina march" to Delhi in 2024 to highlight these issues.

Key Concepts:

  • Sixth Schedule: A provision in the Indian Constitution (Articles 244(2) and 275(1)) that provides for the administration of tribal areas in Assam, Meghalaya, Tripura, and Mizoram. It grants autonomous councils powers over land, forests, and local governance to protect tribal culture and identity.
  • Union Territory (UT): A type of administrative division in India that is directly ruled by the Central Government through an Administrator or Lieutenant Governor. UTs have limited legislative powers compared to states. Ladakh became a UT in 2019.
  • Article 370: A temporary provision in the Indian Constitution that granted special autonomous status to Jammu and Kashmir. It was abrogated on August 5, 2019, and J&K was reorganized into two UTs - J&K and Ladakh.
  • Environmental Activism: Social movement aimed at protecting the environment, promoting sustainability, and advocating for policies that preserve natural resources and ecological balance.
  • Public Interest Litigation (PIL): A legal action initiated in a court of law for the protection of public interest or general interest of the people. The Supreme Court has been liberal in admitting PILs on environmental and tribal rights issues.
  • Land Rights and Domicile Protection: Legal mechanisms to ensure that local populations have exclusive or preferential rights over land ownership, employment, and business opportunities in their region.

Significance & Exam Relevance:

  • Constitutional provisions like Sixth Schedule, Fifth Schedule, and special category status for hill states are important for UPSC Prelims and Mains (Polity and Governance).
  • Article 370 abrogation, reorganization of J&K, and formation of Ladakh UT is a major current affairs topic with constitutional, political, and administrative dimensions.
  • Environmental protection in ecologically sensitive areas, particularly in Himalayan regions, is relevant for Environment & Ecology, Geography, and General Studies papers.
  • Tribal rights, cultural preservation, and autonomous councils are crucial topics for social issues, polity, and governance sections.
  • Public Interest Litigation and judicial activism in environmental matters is important for understanding the role of judiciary in governance.
  • Regional aspirations for statehood, constitutional safeguards, and local governance are relevant for federalism and Centre-State relations topics.

Stakeholders:

  • Sonam Wangchuk - Environmental activist and petitioner
  • Supreme Court of India - Judicial body hearing the case
  • People of Ladakh - approximately 290,000 residents, including Buddhist majority in Leh and Muslim majority in Kargil
  • Leh Apex Body and Kargil Democratic Alliance - civil society organizations representing local demands
  • Government of India - Ministry of Home Affairs (responsible for UT administration)
  • Lieutenant Governor of Ladakh - administrative head of the UT
  • Ministry of Environment, Forest and Climate Change - concerned with ecological protection of the Himalayan region
  • Ministry of Tribal Affairs - relevant for Sixth Schedule demands
  • Local traders, business community, and youth concerned about employment and economic opportunities

Impact & Implications:

  • Constitutional Framework: If the Supreme Court orders inclusion of Ladakh under the Sixth Schedule, it would set a precedent for other regions demanding similar constitutional safeguards and could require parliamentary legislation.
  • Environmental Protection: Ladakh's fragile Himalayan ecosystem, already vulnerable to climate change, could receive stronger legal protection through autonomous council powers over land and forests.
  • Local Empowerment: Granting autonomous status would enable local communities to make decisions about resource management, tourism policies, and development projects without excessive central intervention.
  • Cultural Preservation: Constitutional safeguards could help protect Ladakh's unique Buddhist-Muslim cultural heritage, traditional practices, and linguistic identity from demographic changes.
  • Land Rights: Preventing non-Ladakhis from purchasing land would address local concerns about displacement and loss of control over resources, similar to provisions in Himachal Pradesh and Uttarakhand.
  • Political Ramifications: The case touches upon sensitive issues of federalism, autonomy, and the balance between national security considerations and local democratic aspirations.
  • Development Model: The outcome could influence whether Ladakh follows a rapid industrialization path or a sustainable, eco-tourism-based development model.

3. INTERNATIONAL RELATIONS & DIPLOMACY

3.1 India-China Resume Direct Flights After 5 Years

Headline: India and China agree to resume direct flight operations after a five-year suspension, marking a significant step in the normalization of bilateral relations between the two Asian giants.

Context & Background: Direct flight connectivity between India and China was suspended in early 2020 due to the COVID-19 pandemic. However, even after international air travel resumed globally, India-China flights remained suspended due to the deteriorating bilateral relationship following the Galwan Valley clash in June 2020, which resulted in casualties on both sides. This violent border confrontation led to the worst India-China relations in decades. The standoff in eastern Ladakh continued with both countries deploying tens of thousands of troops along the Line of Actual Control (LAC). Multiple rounds of military and diplomatic talks were held, with some disengagement achieved in areas like Pangong Tso and Gogra-Hot Springs. Prior to the suspension, there were approximately 42-45 weekly flights between India and China operated by Air India, IndiGo, Air China, China Eastern, and China Southern. In 2019, before the suspension, around 800,000 passengers traveled between the two countries annually. The decision to resume flights comes amid changing global geopolitical dynamics, particularly with the Trump administration's tariff policies affecting both nations.

Key Concepts:

  • Line of Actual Control (LAC): The de facto border between India and China, approximately 3,488 km long, stretching from Ladakh in the west to Arunachal Pradesh in the east. Unlike the Line of Control with Pakistan, the LAC is not clearly demarcated, leading to differing perceptions and occasional standoffs.
  • Bilateral Air Services Agreement (ASA): A treaty between two countries that grants airlines the right to operate scheduled flights between specific airports in each country. These agreements specify routes, number of flights, designated airlines, and operational terms.
  • Galwan Valley Clash (June 2020): A violent face-off between Indian and Chinese troops in the Galwan Valley of Ladakh that resulted in casualties on both sides (20 Indian soldiers martyred and casualties on Chinese side, though exact numbers not disclosed by China). This was the first deadly clash between the two armies in 45 years.
  • Disengagement: In military terms, the process of withdrawing troops and military assets from confrontation points along a disputed border, typically following negotiations between the two countries' military commanders.
  • Passenger Traffic: The number of people traveling by air between two countries, an important indicator of people-to-people contacts, business relations, tourism, and overall bilateral relationship health.
  • Geopolitical Thaw: The easing of tensions and improvement in relations between countries that were previously in a state of diplomatic or military standoff.

Significance & Exam Relevance:

  • India-China relations is one of the most important topics for UPSC Mains (International Relations), covering historical border disputes, economic ties, and strategic competition.
  • LAC, border disputes, Galwan clash, and military disengagement are frequently asked in prelims (current affairs) and mains (security issues) exams.
  • Aviation agreements, bilateral air connectivity, and their impact on trade and tourism are relevant for economy and international relations sections.
  • Geopolitical shifts, particularly in the context of US-China trade tensions and their impact on India, are important for understanding contemporary international relations.
  • Regional organizations like BRICS, SCO (Shanghai Cooperation Organisation), where both India and China are members, and how bilateral tensions affect multilateral cooperation.
  • Economic dimensions: India-China trade (despite tensions, bilateral trade exceeds $100 billion), trade deficit concerns, and impact of flight connectivity on business relations.

Stakeholders:

  • Ministry of External Affairs (MEA), Government of India
  • Ministry of Foreign Affairs, People's Republic of China
  • Directorate General of Civil Aviation (DGCA), India
  • Civil Aviation Administration of China (CAAC)
  • Indian carriers: Air India, IndiGo, and potentially others seeking China routes
  • Chinese carriers: Air China, China Eastern Airlines, China Southern Airlines
  • Business communities in both countries, particularly in manufacturing, technology, and pharmaceutical sectors
  • Indian students in China (though numbers have decreased from peak of 23,000 in 2019)
  • Tourism industry professionals in both countries
  • Chinese workers and professionals in India and vice versa
  • Families with cross-border connections

Impact & Implications:

  • Economic Benefits: Restoration of direct flights will facilitate business travel, reduce travel time and costs (currently passengers must transit through third countries like Thailand or Singapore), and potentially boost bilateral trade which stood at approximately $118 billion in 2023-24.
  • Tourism Recovery: Before the suspension, approximately 300,000 Indian tourists visited China annually, while about 250,000 Chinese tourists came to India. Direct flights could revive this sector.
  • People-to-People Contacts: Enhanced connectivity will improve cultural exchanges, academic collaborations, and family reunions, contributing to better understanding between the two civilizations.
  • Strategic Signaling: The decision to resume flights indicates both governments' willingness to compartmentalize issues – maintaining border tensions separately from economic and people-to-people ties.
  • Regional Stability: Improved India-China relations contribute to overall stability in Asia, which is crucial given both are nuclear powers with 2.8 billion people and significant economic weight.
  • Geopolitical Context: The thaw comes amid US-China tensions and high tariffs imposed by the Trump administration, suggesting both Asian giants may be seeking to reduce dependence on Western markets and strengthen regional ties.
  • Military Standoff: While flight resumption is positive, it doesn't necessarily indicate complete resolution of border tensions. Both countries maintain significant military deployments along the LAC.
  • Aviation Sector: Indian and Chinese airlines will benefit from restored routes, with potential for increased frequency over time if demand recovers to pre-pandemic levels.

4. ECONOMY & FINANCE

4.1 RBI Monetary Policy Committee (MPC) Meeting - October 2025

Headline: The Reserve Bank of India's Monetary Policy Committee is holding its crucial October 2025 meeting, with market participants and economists closely watching for decisions on repo rate amid inflation concerns and GDP growth considerations.

Context & Background: The Reserve Bank of India's Monetary Policy Committee is a six-member body responsible for formulating monetary policy in India. Established under the RBI Act, 1934 (amended in 2016), the MPC includes three members from RBI (including the Governor who is the chairperson) and three external members appointed by the Central Government. The committee meets at least four times a year (bi-monthly) to assess macroeconomic conditions and decide the policy interest rate (repo rate) needed to achieve the inflation target. India follows an inflation-targeting framework with a target of 4% CPI inflation with a tolerance band of +/- 2% (i.e., 2-6%). The current repo rate stands at 5.5% (as maintained since February 2023). The Indian economy has been experiencing robust growth with GDP expanding at 6.5% in FY 2024-25, but inflation concerns persist, particularly in food prices. Global factors like crude oil prices, US Federal Reserve policy decisions, and geopolitical tensions also influence RBI's policy stance.

Key Concepts:

  • Monetary Policy Committee (MPC): A statutory body under the RBI Act that determines the policy interest rate to maintain price stability while keeping growth objectives in mind. Decisions are taken by majority vote, with the Governor having a casting vote in case of a tie.
  • Repo Rate: The rate at which the Reserve Bank of India lends money to commercial banks. When RBI increases repo rate, borrowing becomes expensive, reducing money supply and controlling inflation. Conversely, lowering repo rate makes credit cheaper, stimulating economic activity.
  • Consumer Price Index (CPI) Inflation: A measure of the average change over time in the prices paid by consumers for a basket of goods and services. It is the principal inflation measure that RBI targets. CPI includes food, fuel, housing, clothing, healthcare, education, and other categories.
  • Reverse Repo Rate: The rate at which RBI borrows money from commercial banks. It is currently 3.35%, which is 2.15% below the repo rate. This rate influences how much liquidity banks park with RBI rather than lending to the economy.
  • Gross Domestic Product (GDP): The total monetary value of all goods and services produced within a country's borders in a specific time period. India's GDP growth is a key indicator of economic health and influences RBI's policy decisions.
  • Inflation Targeting: A monetary policy framework where a central bank has an explicit target inflation rate and uses policy tools (mainly interest rates) to achieve that target. India adopted this framework in 2016.
  • Liquidity Management: RBI's actions to ensure adequate money supply in the banking system to meet credit demands while controlling inflation. Tools include repo rate, cash reserve ratio (CRR), and open market operations.

Significance & Exam Relevance:

  • Monetary policy, RBI's functions, and instruments of monetary control are core topics for UPSC Prelims and Mains (Economy), SSC, and Banking exams.
  • Inflation measurement (CPI vs WPI), causes, effects, and control measures are frequently asked in all competitive exams.
  • Repo rate, reverse repo rate, CRR, SLR, and other monetary policy tools are standard questions in banking exams and UPSC economy paper.
  • RBI's structure, Governor's role, MPC composition, and decision-making process are important for understanding Indian financial system.
  • Relationship between inflation, interest rates, and economic growth (Phillips Curve concept) is relevant for theory-based questions.
  • Impact of global factors (crude oil prices, US Fed policy, geopolitical events) on Indian monetary policy demonstrates interconnected global economy.
  • Recent economic data like GDP growth rate, inflation rate, fiscal deficit are must-know statistics for current affairs sections.

Stakeholders:

  • Reserve Bank of India - Monetary Policy Committee (6 members including Governor Sanjay Malhotra)
  • Commercial Banks - both public and private sector banks whose lending and deposit rates are influenced by policy rate changes
  • Borrowers - individuals and businesses seeking loans for homes, vehicles, business expansion, etc.
  • Depositors and Savers - people with savings accounts, fixed deposits whose returns are affected by interest rate changes
  • Government of India - Ministry of Finance, concerned with fiscal-monetary policy coordination
  • Stock Market Investors - equity markets react significantly to MPC decisions and policy stance
  • Bond Market Participants - government securities and corporate bond yields are directly impacted
  • Common Citizens - affected through changes in EMIs, cost of living, and employment opportunities
  • Rating Agencies - Moody's, S&P, Fitch that assess India's economic health and creditworthiness
  • Foreign Portfolio Investors (FPIs) - who make investment decisions based on interest rate differentials and economic outlook

Impact & Implications:

  • Interest Rate Scenario: If RBI maintains repo rate at 5.5% (status quo expected by most analysts), it indicates a balanced approach between supporting growth and controlling inflation. EMIs on existing floating-rate loans remain unchanged.
  • Inflation Management: With food inflation showing persistence, maintaining a steady policy rate helps RBI monitor evolving price trends without prematurely tightening monetary conditions.
  • Growth Support: India's GDP growth of 6.5% in FY25 (as per estimates) remains robust, and unchanged rates continue to provide supportive financial conditions for investment and consumption.
  • Banking Sector: Banks' net interest margins (NIMs) remain stable with unchanged policy rates. However, they may adjust lending rates based on liquidity conditions and competitive pressures.
  • Housing and Auto Sectors: Status quo on rates provides relief to these interest-sensitive sectors which were concerned about potential rate hikes that would increase EMI burdens on consumers.
  • Currency Impact: RBI's policy stance, compared to other central banks (especially US Federal Reserve), influences foreign capital flows and Rupee exchange rate. A stable rate differential may support capital inflows.
  • Fiscal-Monetary Coordination: RBI's monetary policy works in tandem with Government's fiscal policy. Maintaining accommodative monetary conditions supports government's growth agenda while fiscal consolidation continues.
  • Regional Variations: Some states experiencing higher inflation may face continued price pressures, while manufacturing and export sectors benefit from stable credit costs.

4.2 India's Economic Outlook and Growth Trajectory

Headline: India maintains its position as the fastest-growing major economy with 6.5% GDP growth in FY 2024-25, supported by strong domestic demand and government capital expenditure, despite global uncertainties.

Context & Background: India's economic journey post-independence has been remarkable, evolving from a predominantly agrarian economy to a diversified economy with significant contributions from services, manufacturing, and agriculture. After economic liberalization in 1991, India opened up to global trade and investment, leading to accelerated growth. Despite global challenges including the COVID-19 pandemic (2020-21), supply chain disruptions, and geopolitical tensions, India has emerged as a resilient economy. The country's GDP crossed $3.7 trillion in 2024, making it the world's fifth-largest economy. The government's focus on infrastructure development through initiatives like PM Gati Shakti, production-linked incentive (PLI) schemes for manufacturing, and digital transformation has contributed to sustained growth. Major international organizations like the IMF, World Bank, and Asian Development Bank project India to be the fastest-growing major economy in 2025-26 as well.

Key Concepts:

  • Gross Domestic Product (GDP): The total monetary value of all finished goods and services produced within a country's borders in a specific time period, usually calculated annually or quarterly. It is the primary indicator of economic health.
  • GDP Growth Rate: The percentage increase in GDP from one period to another, indicating how fast an economy is growing. India's 6.5% growth means the economy is expanding at that rate annually.
  • Nominal vs Real GDP: Nominal GDP is calculated at current market prices, while Real GDP is adjusted for inflation. Real GDP provides a more accurate picture of economic growth by removing price effects.
  • Sectoral Contribution: The Indian economy comprises three main sectors - Agriculture (about 18% of GDP), Industry including manufacturing (25% of GDP), and Services (57% of GDP). Services sector is the largest contributor.
  • Capital Expenditure (CapEx): Government spending on infrastructure, assets, and long-term investments that create productive capacity. India's budget has significantly increased CapEx from ₹5.5 lakh crore in FY22 to over ₹11 lakh crore in FY25.
  • Production Linked Incentive (PLI) Scheme: A government initiative launched in 2020 to boost domestic manufacturing by providing financial incentives to companies based on their production growth. It covers 14 sectors including electronics, automobiles, pharmaceuticals, and textiles.
  • PM Gati Shakti: A national master plan launched in 2021 for multi-modal connectivity infrastructure to reduce logistics costs and improve efficiency. It integrates planning and execution of infrastructure projects across ministries.

Significance & Exam Relevance:

  • GDP concepts, calculation methods, and India's GDP growth trajectory are fundamental topics for UPSC Economics, SSC, and Banking exams.
  • Sectoral composition of Indian economy and their changing contributions over time is important for understanding economic transformation.
  • Government schemes like PLI, PM Gati Shakti, Make in India, and their objectives are frequently asked in current affairs sections.
  • Comparison of India's growth with other major economies (China, US, EU) is relevant for international economy questions.
  • Infrastructure development, its impact on GDP growth, and logistics sector reforms are emerging topics in mains exams.
  • Challenges to economic growth - inflation, unemployment, fiscal deficit, current account deficit - and their solutions are crucial for policy-based questions.
  • Role of services sector (IT, financial services, tourism) in India's growth story is important for understanding India's competitive advantages.

Stakeholders:

  • Government of India - Ministry of Finance, NITI Aayog, Planning Commission
  • Reserve Bank of India - monetary policy and financial stability
  • Businesses and Industries - manufacturing, services, MSMEs
  • Financial Institutions - banks, insurance companies, NBFCs providing credit for growth
  • Common Citizens - employment, income levels, standard of living affected by economic growth
  • Investors - domestic and foreign investors seeking growth opportunities
  • State Governments - implementing development projects and attracting investments
  • International Organizations - IMF, World Bank, ADB monitoring and supporting India's growth
  • Rating Agencies - assessing India's economic health and creditworthiness
  • Agricultural sector - farmers and rural economy that form the base of growth

Impact & Implications:

  • Employment Generation: Sustained 6.5% growth is expected to create millions of jobs across sectors, particularly in manufacturing (through PLI schemes) and construction (through infrastructure push).
  • Poverty Reduction: Economic growth historically correlates with poverty reduction. India has lifted over 250 million people out of poverty in the last 15 years, and continued growth will accelerate this trend.
  • Global Standing: As the fastest-growing major economy, India attracts increased foreign investment, becomes more influential in global economic forums (G20, WTO), and enhances its negotiating power.
  • Infrastructure Development: High government CapEx on roads, railways, ports, and airports improves connectivity, reduces logistics costs (currently 13-14% of GDP vs 8% in developed countries), and enhances competitiveness.
  • Manufacturing Boost: PLI schemes aim to increase manufacturing's share in GDP from 17% to 25% by 2025, making India a manufacturing hub and reducing import dependence.
  • Technology and Innovation: Growth enables higher R&D spending, technology adoption, and innovation in sectors like AI, renewable energy, and biotechnology.
  • Fiscal Space: Higher GDP growth increases tax revenues, providing the government more resources for social welfare schemes, defense, and development programs.
  • Regional Disparities: While overall growth is strong, ensuring equitable regional development remains a challenge. Some states grow faster than others, requiring targeted interventions.
  • Environmental Concerns: Rapid growth must be balanced with environmental sustainability, requiring focus on renewable energy, pollution control, and climate commitments.
  • Social Development: Economic growth should translate into improved healthcare, education, and social indicators, requiring effective implementation of welfare schemes.

5. SCIENCE & TECHNOLOGY

5.1 Advancements in India's Space Program

Headline: India continues to make significant strides in space technology with ISRO's ongoing missions and preparations for upcoming launches including Gaganyaan human spaceflight mission.

Context & Background: The Indian Space Research Organisation (ISRO) was established in 1969 under the visionary leadership of Dr. Vikram Sarabhai. Since then, India has achieved remarkable milestones in space technology. Notable achievements include the Chandrayaan missions (Chandrayaan-3 successfully landed on the Moon's south pole in August 2023), Mangalyaan (Mars Orbiter Mission), and the development of various satellite systems for communication, navigation (NavIC), and earth observation. ISRO operates one of the world's largest fleets of remote sensing satellites. The Gaganyaan mission, India's first human spaceflight program, was announced in 2018 with an initial target of 2022, later revised due to COVID-19 and additional safety requirements. India is the fourth country to demonstrate indigenous capability to launch a satellite into orbit (after USSR, USA, and France) and has launched over 400 foreign satellites commercially.

Key Concepts:

  • ISRO (Indian Space Research Organisation): India's national space agency headquartered in Bengaluru, responsible for space research, satellite development, and launch vehicle technology. It operates under the Department of Space.
  • Gaganyaan Mission: India's human spaceflight program aiming to send three astronauts (called Gagannauts) to Low Earth Orbit (400 km) for three days. When successful, India will become the fourth nation (after USA, Russia, China) to independently launch humans into space.
  • Launch Vehicle: A rocket that carries spacecraft, satellites, or humans from Earth to space. ISRO's workhorse launch vehicles include PSLV (Polar Satellite Launch Vehicle) and GSLV (Geosynchronous Satellite Launch Vehicle). Human-rated GSLV Mk III is planned for Gaganyaan.
  • Chandrayaan: India's lunar exploration program. Chandrayaan-1 (2008) discovered water molecules on the Moon, Chandrayaan-2 (2019) achieved lunar orbit but lander crashed, and Chandrayaan-3 (2023) successfully landed on the Moon's south polar region.
  • NavIC (Navigation with Indian Constellation): India's indigenous regional navigation satellite system covering India and regions extending up to 1,500 km. It provides accurate position information and is an alternative to GPS.
  • Remote Sensing Satellites: Satellites that collect data about Earth's surface, atmosphere, and oceans using sensors. India uses these for weather forecasting, disaster management, agriculture monitoring, and urban planning.
  • Space Station: India plans to establish its own space station "Bharatiya Antariksh Station" by 2035, following the Gaganyaan mission success.

Significance & Exam Relevance:

  • ISRO's achievements, missions (Chandrayaan, Mangalyaan, Gaganyaan, Aditya-L1), and contributions are frequently asked in UPSC Prelims and Mains (Science & Technology).
  • India's position in global space race, cost-effective space missions, and commercial satellite launches are important current affairs topics.
  • Applications of space technology - communication, navigation, remote sensing, weather forecasting - are relevant for understanding science-society interface.
  • Space policy, international cooperation (NASA-ISRO collaboration), and private sector participation in space are emerging topics.
  • Constitutional and legal aspects: Outer Space Treaty, space law, and India's draft Space Activities Bill are relevant for polity and international law.
  • Economic impact: space technology exports, commercial launches, and contribution to GDP are important for economy section.
  • Strategic dimension: satellite surveillance, military satellites, and space security are relevant for security studies.

Stakeholders:

  • Indian Space Research Organisation (ISRO) and its Chairman
  • Department of Space, Government of India
  • Human Spaceflight Centre, Bengaluru (responsible for Gaganyaan)
  • Astronauts/Gagannauts selected for the mission (trained in India and Russia)
  • Scientists, engineers, and technical staff across ISRO centers
  • Indian Air Force (astronaut candidates selected from IAF test pilots)
  • Aerospace industry and private space companies (Skyroot, Agnikul, etc.)
  • International collaborating agencies (NASA, Roscosmos, ESA)
  • Academic institutions conducting space research
  • Common citizens benefiting from satellite-based services

Impact & Implications:

  • National Pride and Inspiration: Successful human spaceflight mission will inspire millions of young Indians to pursue careers in STEM fields and demonstrate India's technological prowess.
  • Technological Advancement: Gaganyaan requires development of life support systems, crew escape mechanisms, and human-rated launch vehicles, creating spin-off technologies beneficial for other sectors.
  • Strategic Autonomy: Independent space capabilities reduce dependence on other nations for critical satellite services, navigation, and communication.
  • Economic Benefits: Space technology applications in agriculture (crop monitoring), disaster management, telecommunications, and weather forecasting save costs and improve efficiency.
  • Commercial Opportunities: ISRO's commercial arm Antrix Corporation and NewSpace India Limited (NSIL) generate revenue through satellite launches, earning foreign exchange.
  • International Cooperation: Space missions enable collaborations with NASA, ESA, Roscosmos, and JAXA, enhancing India's global standing and accessing advanced technologies.
  • Scientific Research: Space missions contribute to understanding celestial bodies, cosmic phenomena, and answering fundamental questions about the universe.
  • Defense Applications: Military satellites, surveillance capabilities, and secure communication networks enhance national security and defense preparedness.
  • Job Creation: Expanding space sector creates high-skilled employment in engineering, research, and allied industries.
  • Future Missions: Success of Gaganyaan paves the way for Indian Space Station, Moon landing missions, and potential Mars missions, establishing India as a major space power.

6. ENVIRONMENT & ECOLOGY

6.1 Climate Change and Weather Patterns in India

Headline: Multiple Indian states experience changing weather patterns with predictions of rainfall and temperature variations, highlighting the ongoing impacts of climate change on the subcontinent.

Context & Background: India is highly vulnerable to climate change impacts due to its diverse geography, large population dependent on agriculture, and extensive coastline. The country experiences varied climate zones from tropical in the south to alpine in the Himalayas. The Indian Meteorological Department (IMD), established in 1875, monitors weather patterns and issues forecasts. In recent years, India has witnessed increased frequency of extreme weather events - unseasonal rainfall, heat waves, cyclones, floods, and droughts. The 2024 monsoon season showed variations from normal patterns, affecting agriculture which still employs about 42% of the workforce. Global climate change, driven by greenhouse gas emissions, has led to rising temperatures (India recorded its hottest month ever in May 2024), erratic monsoons, and glacial melting in the Himalayas. India is committed to achieving Net Zero emissions by 2070 and has set ambitious renewable energy targets of 500 GW by 2030.

Key Concepts:

  • Indian Meteorological Department (IMD): The national meteorological service under the Ministry of Earth Sciences responsible for weather forecasting, seismology, and climate monitoring. It provides daily weather updates, cyclone warnings, and monsoon predictions.
  • Monsoon: Seasonal wind pattern that brings heavy rainfall to India during June-September (Southwest Monsoon) and October-December (Northeast Monsoon in Tamil Nadu). Agriculture heavily depends on monsoon rainfall as 52% of cultivated area is rain-fed.
  • Climate Change: Long-term shifts in temperatures and weather patterns primarily caused by human activities, especially burning of fossil fuels, deforestation, and industrial emissions that increase greenhouse gases (CO2, methane) in the atmosphere.
  • Extreme Weather Events: Severe weather phenomena including heat waves (temperature exceeding 45°C), cyclones, floods, droughts, and cloudbursts that cause significant damage to life and property.
  • Net Zero: Achieving a balance between greenhouse gas emissions produced and removed from the atmosphere. India committed at COP26 (Glasgow, 2021) to reach Net Zero by 2070.
  • Paris Agreement: A legally binding international treaty on climate change adopted in 2015, aiming to limit global temperature increase to below 2°C, preferably 1.5°C, compared to pre-industrial levels. India is a signatory.
  • National Action Plan on Climate Change (NAPCC): Launched in 2008 with eight missions including solar energy, enhanced energy efficiency, sustainable agriculture, and water conservation to address climate change.

Significance & Exam Relevance:

  • Climate change, its causes, effects, and mitigation strategies are crucial topics for UPSC Prelims and Mains (Environment & Ecology, Geography).
  • International climate agreements (Paris Agreement, Kyoto Protocol, COP summits) and India's commitments are frequently asked.
  • Monsoon mechanism, variations, and their impact on Indian agriculture and economy are standard geography questions.
  • Disaster management, early warning systems, and IMD's role are relevant for GS Paper III (disaster management section).
  • Renewable energy targets, solar and wind power capacity, and India's climate action are important current affairs topics.
  • Concepts like carbon neutrality, carbon credits, green hydrogen, and electric vehicles are emerging in exam papers.
  • Impact of climate change on biodiversity, forests, water resources, and vulnerable communities is relevant for social and environmental questions.

Stakeholders:

  • Indian Meteorological Department (IMD) - weather forecasting and monitoring
  • Ministry of Earth Sciences and Ministry of Environment, Forest and Climate Change
  • National Disaster Management Authority (NDMA) and State Disaster Management Authorities
  • Farmers and agricultural sector - directly impacted by weather patterns
  • Common citizens - affected by extreme weather, floods, heat waves
  • State governments - responsible for disaster response and relief measures
  • Insurance companies - providing crop insurance and disaster coverage
  • Scientists and climate researchers studying weather patterns
  • International organizations - IPCC, UNFCCC monitoring global climate action
  • Industries - renewable energy sector, water management, infrastructure

Impact & Implications:

  • Agricultural Impact: Changing weather patterns affect crop yields, sowing schedules, and farmer incomes. Erratic monsoons can lead to either drought or flood situations, both harmful to agriculture.
  • Water Resources: Irregular rainfall patterns affect groundwater recharge, reservoir levels, and drinking water availability. States like Maharashtra, Karnataka face recurring water crises.
  • Economic Costs: Extreme weather events cause billions in damages to infrastructure, crops, and property. Climate change could reduce India's GDP by 2.6% by 2050 according to some estimates.
  • Health Impacts: Heat waves cause heat strokes and deaths, while changing weather patterns increase vector-borne diseases like dengue and malaria. Air quality also worsens with weather changes.
  • Migration and Displacement: Climate-induced disasters force people to migrate from rural to urban areas, creating climate refugees and urban population pressure.
  • Biodiversity Loss: Changing temperatures and weather patterns threaten ecosystems, wildlife habitats, and forest cover. Himalayan glaciers melting affects downstream river flows.
  • Energy Demand: Extreme heat increases electricity demand for cooling, while hydro power generation depends on water availability which is affected by rainfall patterns.
  • Disaster Preparedness: Improved weather forecasting and early warning systems by IMD help in timely evacuation and reducing casualties during cyclones and floods.
  • Policy Response: Government implementing climate-resilient agriculture, crop insurance schemes (PMFBY), renewable energy programs, and afforestation to adapt to and mitigate climate change.
  • International Obligations: India must balance economic growth with climate commitments, requiring transition to clean energy while ensuring energy security and industrial development.

7. SOCIAL ISSUES & GOVERNMENT SCHEMES

7.1 Social Welfare and Development Initiatives

Headline: Government continues implementation of various social welfare schemes aimed at poverty alleviation, women empowerment, and inclusive development across the country.

Context & Background: Social welfare has been a priority for Indian governments since independence, with the Constitution enshrining principles of social justice and equality in the Directive Principles of State Policy. Over the decades, numerous schemes have been launched targeting different vulnerable sections - below poverty line families, scheduled castes and tribes, women, children, elderly, and disabled persons. Major initiatives include food security (National Food Security Act, 2013), rural employment (MGNREGA), housing (PM Awas Yojana), financial inclusion (Jan Dhan Yojana, PM-KISAN), and health insurance (Ayushman Bharat). The Direct Benefit Transfer (DBT) system, JAM (Jan Dhan-Aadhaar-Mobile) trinity, and digital India initiatives have improved delivery of welfare schemes, reduced leakages, and ensured benefits reach intended beneficiaries. According to NITI Aayog, India has lifted 248 million people out of multidimensional poverty between 2015-16 and 2022-23.