DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 21st July – 2025

Category: ECONOMICS

Context:  India’s consumer price index (CPI) food inflation was just 2.1% in June 2025 — lower than the US (2.7%), UK (4.5%), and EU (3%). This is the lowest since January 2019.

Key Points:

• Factors Controlling Inflation:
  • Good monsoon for the second consecutive year boosted crop output.
  • High central food stockpiles (see Table 1).
  • Government policy: Allowed zero/low-duty imports of pulses and edible oils.
  • Cooling global prices for oil and pulses.
• RBI Implication:
  This easing food inflation gives space for RBI to cut interest rates, which were kept high due to inflation worries.

Monsoon and Crop Impact:

• Ample rainfall across the country boosted soil moisture and groundwater, benefiting Kharif crops like rice, arhar, and soybean.
• Area sown under Kharif crops has increased marginally in 2025 compared to 2024 (Table 2), especially for pulses, oilseeds, cotton, and maize.

Imports and Price Support:

• Government imports of arhar and tur dal from Mozambique and Malawi.
• Edible oil imports (soybean, sunflower) were allowed at reduced duty to control inflation.
• Support prices for crops like tur increased to ensure farmers get remunerative returns.

Learning Corner:

Different Types of Inflation

Inflation refers to the general rise in the price level of goods and services in an economy over a period. Different types of inflation are classified based on causes, speed, and scope:

Based on Causes:

1. Demand-Pull Inflation
   • Caused by excess demand over supply in the economy.
   • Occurs when consumer spending increases faster than production.
2. Cost-Push Inflation
   • Caused by a rise in production costs (e.g., wages, raw materials).
   • Producers pass higher costs to consumers as higher prices.
3. Built-in Inflation (Wage-Price Spiral)
   • Occurs when workers demand higher wages to keep up with living costs, increasing production costs and causing further inflation.

Based on Speed:

1. Creeping Inflation
   • Mild, slow rise in prices (≤ 3% per year).
   • Considered manageable and sometimes desirable.
2. Walking Inflation
   • Moderate inflation (3–10% annually).
   • Can affect the purchasing power and investment.
3. Galloping Inflation
   • Rapid inflation (double or triple digits).
   • Destabilizes the economy.
4. Hyperinflation
   • Extremely high and typically uncontrollable inflation (e.g., >50% per month).
   • Seen in crisis-hit countries (e.g., Zimbabwe, Venezuela).

Based on Scope and Control:

1. Headline Inflation
   • Measures total inflation including volatile items like food and fuel.
   • Tracked by indices like CPI (Consumer Price Index) in India.
2. Core Inflation
   • Excludes food and fuel to reflect the underlying trend in inflation.
   • Useful for monetary policy decisions.

Other Special Types:

1. Stagflation
   • Inflation + stagnant growth + high unemployment.
   • Difficult to manage through traditional policies.
2. Deflation
   • Negative inflation; general fall in prices.
   • Often indicates weak demand and economic slowdown.
3. Reflation
   • Deliberate policy-induced inflation to recover from deflation or recession.
   • Achieved through fiscal/monetary stimulus.
4. Skewflation
   • Inflation only in specific sectors, like food or fuel, due to supply shocks.

Source: THE INDIAN EXPRESS

Category: INTERNATIONAL

Context: The resumption of the Kailash Manasarovar Yatra in 2025, after a five-year gap, is seen as a key step in rebuilding India-China relations.

The move has been hailed as a positive gesture in cultural diplomacy, promoting people-to-people exchanges and restoring mutual trust after years of pandemic-related suspension and border tensions.

Chinese officials welcomed Indian pilgrims, describing them as “envoys of friendship,” while both governments emphasized the Yatra’s value as a confidence-building measure. Its revival aligns with the 75th anniversary of diplomatic ties, adding symbolic significance to the initiative.

The decision follows high-level diplomatic engagements, with agreements to resume direct flights, improve cross-border cooperation on issues like water sharing and media, and discuss expanded routes and services for pilgrims. The Yatra is now being positioned not just as a spiritual journey, but as a strategic opportunity to stabilize and normalize bilateral ties.

Learning Corner:

Kailash Manasarovar Yatra

The Kailash Manasarovar Yatra is a sacred pilgrimage undertaken by Hindu, Buddhist, Jain, and Bon devotees to Mount Kailash and Lake Manasarovar, located in the Tibet Autonomous Region of China. The sites are revered as the abode of Lord Shiva and hold immense spiritual and cultural significance.

Key Features:

• Organized annually by the Government of India in collaboration with Chinese authorities.
• Traditionally conducted through two routes:
  1. Lipu Lekh Pass (Uttarakhand)
  2. Nathula Pass (Sikkim)
• Involves high-altitude trekking, requiring medical fitness and acclimatization.

Recent Developments:

• Suspended since 2020 due to the COVID-19 pandemic and India-China border tensions.
• Resumed in 2025, symbolizing a thaw in bilateral relations and a step towards confidence building.
• Welcomed by both Indian and Chinese leaders as a move to enhance cultural diplomacy, people-to-people ties, and bilateral cooperation.
• Coincides with the 75th anniversary of diplomatic relations between India and China.

Source:  THE HINDU

Category: ECONOMICS

Context : CoinDCX Suffers ₹378-Crore Security Breach

What Happened:

CoinDCX, one of India’s largest cryptocurrency exchanges, suffered a major security breach on July 19, 2025. Hackers compromised an internal operational wallet used for liquidity management, stealing approximately ₹378 crore ($44.2 million). The breach did not affect any customer wallets or funds.

Company Response:

• Founders reassured users that all customer assets remain safe and unaffected.
• The entire loss is being absorbed by CoinDCX’s own treasury, ensuring no financial impact on users.
• CERT-In was informed, and cybersecurity audits are underway.

Details of the Hack:

• Hackers targeted stablecoins (USDT, USDC) and transferred funds across Solana and Ethereum chains, routing them through Tornado Cash to obscure tracking.
• The attack was flagged by blockchain investigators before CoinDCX made a public disclosure.

Key Takeaways:

• User funds are fully secure.
• The breach only impacted a company-owned liquidity wallet.
• CoinDCX responded swiftly with transparency, containment, and external audits.
• The incident highlights the growing cybersecurity risks in crypto platforms despite proactive measures.

Learning Corner:

Different Types of Cryptocurrencies

Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate on decentralized blockchain networks. They serve different purposes, from being digital money to powering decentralized applications.

Payment Currencies

• Purpose: Designed as a medium of exchange.
• Examples:
  • Bitcoin (BTC): The first and most widely used cryptocurrency.
  • Litecoin (LTC), Bitcoin Cash (BCH): Faster and lighter alternatives to Bitcoin.
• Use case: Peer-to-peer payments, remittances, store of value.

Stablecoins

• Purpose: Pegged to a stable asset (like USD) to reduce volatility.
• Examples:
  • USDT (Tether), USDC (USD Coin), DAI
• Use case: Trading, DeFi (Decentralized Finance), payments without volatility.

Utility Tokens

• Purpose: Provide access to a product or service on a blockchain platform.
• Examples:
  • Ethereum (ETH): Powers smart contracts on the Ethereum network.
  • BNB (Binance Coin): Used on Binance exchange for fee discounts and services.
• Use case: Gas fees, platform services, staking, governance.

Security Tokens

• Purpose: Represent ownership in real-world assets (like stocks, bonds, or real estate).
• Examples:
  • tZERO, Polymath
• Use case: Digital securities, tokenized assets, regulated investments.
• Regulated: Often subject to securities laws.

Governance Tokens

• Purpose: Allow holders to vote on changes to protocols or decentralized platforms.
• Examples:
  • Uniswap (UNI), Aave (AAVE), Compound (COMP)
• Use case: Voting rights in DeFi platforms and DAOs (Decentralized Autonomous Organizations).

Privacy Coins

• Purpose: Provide enhanced anonymity and untraceable transactions.
• Examples:
  • Monero (XMR), Zcash (ZEC)
• Use case: Privacy-focused payments, censorship resistance.

Meme Coins

• Purpose: Originally created as jokes but gained popularity through community hype.
• Examples:
  • Dogecoin (DOGE), Shiba Inu (SHIB)
• Use case: Speculative investment, tipping, social engagement.

Source :  THE HINDU

Category: GEOGRAPHY

Context: Moon Day, observed every year on July 20, commemorates the first manned Moon landing during NASA’s Apollo 11 mission in 1969.

Why It Matters:

• Marks a milestone in human space exploration and scientific achievement.
• Honors the courage and collaboration behind Apollo 11.
• Inspires ongoing and future missions like Artemis, Chandrayaan, and others.
• Encourages public interest in STEM and the spirit of discovery.

Learning Corner:

Some interesting facts on the Moon

The Moon is Earth’s only natural satellite and the fifth-largest moon in the Solar System. It orbits Earth at an average distance of about 384,400 km and has a diameter of 3,474 km.

Key Features:

• Formation: Likely formed about 4.5 billion years ago, possibly from debris after a Mars-sized body collided with Earth (Giant Impact Hypothesis).
• Phases: The Moon goes through eight phases each month, from new moon to full moon, due to its position relative to Earth and the Sun.
• Tidal Influence: The Moon’s gravitational pull causes ocean tides on Earth.
• No Atmosphere: It lacks a significant atmosphere, so temperatures fluctuate drastically and no weather occurs.
• Surface: Covered with craters, mountains, and basaltic plains (called maria) formed by ancient volcanic activity.

Scientific Facts:

• The Moon always shows the same face to Earth
  • Due to tidal locking, its rotation period equals its revolution period (~27.3 days).
• It’s moving away from Earth
  • The Moon drifts 3.8 cm farther from Earth every year.
• Moon has weak gravity
  • It’s about 1/6th of Earth’s gravity, which affects human movement and structure building on its surface.
• No atmosphere or magnetic field
  • Thus, it can’t protect from solar radiation or meteor impacts.
• It affects Earth’s tides
  • Caused by its gravitational pull, crucial for marine life and coastal ecosystems.
• Largest relative to its planet
  • Though not the biggest moon, it is proportionally the largest in relation to its planet.
• Water ice discovered
  • Found in permanently shadowed craters near the Moon’s poles—critical for future missions.

Space Missions and Exploration:

• First human landing: Apollo 11 (1969)
  • Neil Armstrong and Buzz Aldrin became the first humans to walk on the Moon.
• India’s Chandrayaan-2 & 3
  • Chandrayaan-3 made India the first country to land on the Moon’s south pole (August 2023).
• NASA’s Artemis Program
  • Aims to return humans to the Moon and build a sustainable lunar base.

Cultural & Other Facts:

• Used in calendars
  • Many cultures follow lunar calendars (e.g., Islamic, Hindu).
• Visible during the day
  • The Moon can often be seen in daylight due to its proximity and brightness.
• Blood Moon & Supermoon
  • Phenomena like lunar eclipses (Blood Moon) and closest approach to Earth (Supermoon) captivate skywatchers.

Source: THE HINDU

Category: ENVIRONMENT

Context: New Lichen Species Discovered in Western Ghats.

Indian scientists have discovered a new lichen species, Allographa effusosoredica, in the Western Ghats, adding the 53rd species of the genus Allographa in India and highlighting the region’s rich lichen diversity.

Key Highlights

• Symbiotic Nature: Lichens are ancient symbiotic organisms formed by a fungus and a photobiont (green alga or cyanobacterium), enabling survival in extreme habitats.
• Unique Traits: The species has a crust-like body, powdery effuse soredia, and produces norstictic acid, a rare compound.
• Scientific Approach: Researchers used taxonomy, chemical profiling, and molecular techniques (DNA markers) to confirm the species, revealing close relation to Allographa xanthospora.
• Algal Partner: The photobiont belongs to the genus Trentepohlia, broadening our understanding of lichen symbiosis in the tropics.
• Ecological Role: Lichens help in soil formation, feed insects, and serve as bioindicators of environmental change.

Learning Corner:

Allographa effusosoredica is a newly discovered lichen species found in the Western Ghats, one of the world’s richest biodiversity hotspots.

 Key Features:

• Belongs to the genus Allographa; this is the 53rd species of this genus recorded in India.
• Notable for its:
  • Crustose (crust-like) thallus
  • Effuse soredia – powdery asexual structures for reproduction
  • Presence of norstictic acid, a rare secondary metabolite in lichens

Scientific Significance:

• Discovered by MACS-Agharkar Research Institute, Pune
• Identified using an integrated approach:
  • Classical taxonomy
  • Chemical profiling
  • Molecular sequencing (markers: mtSSU, LSU, RPB2 for fungus and ITS for alga)
• Closely related to Allographa xanthospora genetically, but morphologically resembles Graphis glaucescens

 Ecological Importance:

• Lichens like this play roles in:
  • Soil formation
  • Supporting micro-ecosystems
  • Acting as bioindicators of environmental change

Symbiotic Nature:

• A symbiosis between fungus and photobiont (Trentepohlia algae)
• Enhances understanding of ancient mutualisms in tropical ecosystems

Lichens

Lichens are complex life forms that arise from a symbiotic relationship between a fungus (mycobiont) and a photosynthetic partner (photobiont), usually a green alga or cyanobacterium.

Key Features:

• Symbiosis: The fungus provides structure and protection, while the alga or cyanobacterium performs photosynthesis, supplying nutrients.
• Types: Based on appearance, lichens are categorized as:
  • Crustose – crust-like
  • Foliose – leaf-like
  • Fruticose – bushy or branched
• Habitat: Found on rocks, soil, tree bark, and even harsh environments like Arctic tundras or deserts.
• Reproduction: Through spores (fungal) and structures like soredia or isidia (combined fungal-algal fragments).

Ecological Importance:

• Bioindicators: Sensitive to air pollution—used to monitor environmental quality.
• Soil formation: Contribute to the weathering of rocks and formation of soil.
• Nutrient cycle: Support ecosystems by providing food for insects and animals.
• Medicinal use: Some species are used in traditional medicines and produce antibiotic compounds.

Source: PIB

Introduction (Context)

The Aircraft Accident Investigation Bureau (AAIB) released its preliminary report on the Air India Boeing 787 crash in Ahmedabad (June 12, 2025). The inconclusive findings have reignited calls for comprehensive aviation sector reforms to ensure a genuine ‘culture of safety’.

Aviation Safety components

 The aviation system broadly involves multiple elements: 

• Airline operator is responsible for the aircraft itself (design, airworthiness, and maintenance) and the people who operate it (maintenance engineers, technicians, pilots and cabin crew). 
• Airport infrastructure, air traffic control systems and its personnel are the responsibility of the Airports Authority of India (AAI) and/or the aerodrome operator. 
• The Directorate General of Civil Aviation (DGCA) has regulatory control over airlines, the AAI and the airport operators. 
• The Ministry of Civil Aviation (MoCA) has supervisory control over the DGCA and the AAI.

Aviation accidents never result from a single failure but stem from multiple failures that align together. Each safety layer has flaws which lead to accident.

Regulatory loopholes 

• Guidelines related to construction near airports

• • Airspace around airports was strictly regulated until 2008. The Aircraft Act and Statutory Order 988 of 1988 enabled strict control over building constructions near airports to ensure obstacle-free zones
  • In 2008, a non-statutory committee was formed that bypassed the safety mechanism and approved 25 buildings in prime Mumbai locations. 
  • By 2015, these obstacles not only posed physical barriers to safe flight but also interfered with radar and communication signals.
  • The appellate committee capped maximum building height at 90 metres within the Inner Horizontal Surface (IHS).
  • Despite this, approvals for obstacle constructions continued with impunity, jeopardising flight safety.
  • Following a Public Interest Litigation (PIL) on obstacles, MoCA amended the 2015 Rules to limit No Objection Certificate (NOC) validity to 12 years, however it did not address demolition or enforcement mechanisms for illegal floors post-NOC expiry.

Similarly, the new airports at Navi Mumbai and Noida are also facing the same safety risks from nearby constructions.

• Aircraft design and airworthiness

• • DGCA has limited internal technical capability.
  • Over-reliance on foreign regulators like FAA (U.S.) and EASA (EU) for certification and safety standards.
  • Example: IndiGo engine failure issue (Pratt & Whitney) in 2017-18 exposed this dependence.

• Aircraft maintenance standards

• • Aircraft Maintenance Engineers (AMEs) work under severe stress with no duty time limits.
  • DGCA permits airlines to delegate AME tasks to less-qualified, lower-paid technicians, undermining safety.
  • Duty-time limitations recommended post-Mangaluru crash (May 2010) remain unimplemented.

• Flight crew

• • Airlines frequently violate Flight Time Duty Limitations (FTDT) for pilots.
  • DGCA grants exemptions allowing fatigued pilots to operate flights.
  • DGCA’s unique NOC requirement restricts pilot mobility, increasing stress and coercion by airlines.
  • Cabin crew are viewed merely as hospitality staff rather than critical safety personnel.

• Airline operations

• • Airlines prioritise profit over safety, adopting unsafe policies.
  • Even when DGCA suspends personnel for violations, airline officials retain influential positions, controlling operations.
  • DGCA-appointed officers within airlines often lack real authority, making accountability ineffective.

• Air traffic management

• • Severe shortage of Air Traffic Controller Officers (ATCOs) in AAI.
  • Licensing provisions for ATCOs remain unimplemented despite repeated recommendations.
  • Duty-time limitations for ATCOs, suggested after Mangaluru crash, remain unimplemented.

• Silencing whistle-blowers

• • Whistle-blowers reporting safety issues are often demoted, transferred, or terminated.
  • This creates a culture of fear and suppression, discouraging critical disclosures in AAI and airlines.

Way Forward

• Strengthen DGCA technical capabilities and independence.
• Reinforce regulatory frameworks to prevent misuse of obstacle approvals.
• Implement duty-time limitations for AMEs, pilots, and ATCOs.
• Encourage mental health support for air crew without punitive consequences.
• Foster accountability in airline operations, ensuring safety is prioritised over profit.
• Courts must scrutinise technical assessments to ensure safety compliance.
• Revise valuation norms of human life to incentivise systemic safety investments.

Conclusion

Crashes are not mere accidents but consequences of systemic neglect, policy violations, and profit prioritisation. A genuine ‘culture of safety’ must permeate every layer of the aviation system. This includes fair employment terms and, crucially, access to mental health care without punitive consequences.

It should be backed by robust regulation, empowered institutions, and judicial oversight.

Mains Practice Question

Q Despite a robust regulatory framework, India’s aviation sector continues to witness systemic safety failures. Critically analyse the institutional, regulatory, and operational challenges affecting aviation safety in India. (250 words, 15 marks)

Source: https://www.thehindu.com/opinion/lead/reform-cannot-wait-aviation-safety-is-at-stake/article69835446.ece

Introduction (Context)

Despite India’s achievements in food production and poverty reduction, malnutrition among children remains persistently high. To improve both crop and human nutrition, India needs a paradigm shift from merely agriculture production to soil management. Only when soils receive the nutrients do they produce food that nourishes.

Significance of soil nutrient

• Soil micronutrient deficiencies not only impair agricultural productivity but also degrade the nutritional quality of crops. 
• Crops grown on nutrient-deficient soils often mirror those deficiencies, leading to a silent but pervasive form of malnutrition in humans. 
• For Example: Zinc deficiency in soils translates into low zinc content in cereals like wheat and rice, which in turn is linked to childhood stunting — a condition that affects the physical development, long-term cognitive health, as well as the professional life of a person.

Status of Indian Soils

Of more than 8.8 million soil samples tested under the Soil Health Card Scheme in 2024, less than 5 per cent have high or sufficient nitrogen (N), only 40 per cent have sufficient phosphate (P), 32 per cent have sufficient potash (K) and just 20 per cent are sufficient in soil organic carbon (SOC).

Significance of soil organic carbon

• SOC is a critical parameter defining the physical, chemical, and biological properties of soil.
• Soil organic carbon (SOC) is the carbon stored in the organic matter of soil.
• SOC is essential for nutrient cycling, water retention, and carbon sequestration, which helps mitigate climate change. 
• As per the Indian Institute of Soil Science (IISC), SOC in the range of 0.50- 0.75 per cent is adequate. 
• Status of soil organic carbon is low in India. 

Imbalanced Fertiliser Use in India

• In many regions, nitrogen (N) is overused, while phosphorus (P) and potassium (K) are underused.
• Punjab: N use exceeds recommendations by 61%, P use is 8% less than recommended and K use is 89% less
• Similar nutrient imbalance patterns are seen in several other states.
• The Imbalanced Fertiliser Use leads to suboptimal agricultural productivity.
• Nationwide, the fertiliser-to-grain response ratio has declined significantly from 1:10 in the 1970s to a mere 1:2.7 in 2015.

Issues with Granular Urea Application

• Only 35-40% of nitrogen is absorbed by crops.
• Remaining nitrogen is released into the atmosphere as nitrous oxide, a GHG 273 times more potent than CO₂.
• It also leaches into groundwater as nitrates, contaminating drinking water.
• Imbalanced fertiliser use is contributing to environmental pollution rather than boosting yields.

Recommendations

• Move from blanket fertiliser application to science-based, soil-specific, and crop-specific fertilisation.
• Strengthen Soil Health Card Scheme with real-time digital integration and farmer advisory.
• Incentivise use of potash, phosphate, sulphur, and micronutrient fortified fertilisers.
• Promote organic manures and biofertilisers to improve SOC levels.
• Recognise soil health as a public health imperative, not just an agricultural concern.
• Develop, implement, and scale region-specific, data-driven soil nutrition solutions
• Enhance crop productivity and nutritional quality

Conclusion

India’s food security journey must evolve from “caloric sufficiency” to “nutritional sufficiency.” Recognising the urgency of this challenge, the Indian Council for Research on International Economic Relations (ICRIER) and OCP Nutricrops have committed to collaborating to improve soil health in India and beyond. OCP Nutricrops brings cutting-edge expertise in soil nutrition and fertiliser solutions aimed at addressing global challenges in sustainable food production. The collaboration aims to develop, implement, and scale region-specific, data-driven soil nutrition solutions that enhance crop productivity while improving their nutritional profile.

Thus, to truly move from plate to plough and back to plate, soil nutrient management is must.

Mains Practice Question

Q “Improving soil health is no longer just an agricultural issue but a public health imperative in India.” Discuss this statement in the context of the current fertiliser usage patterns and suggest a roadmap for sustainable soil nutrition management. (250 words, 15 marks)

Source: https://indianexpress.com/article/opinion/columns/to-improve-both-crop-and-human-nutrition-india-needs-a-paradigm-shift-10138789/