DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 1st August – 2025

Category: POLITY

Context:  The Supreme Court has strongly criticized the Telangana Assembly Speaker for delaying the decision on disqualification petitions.

A Bench led by Chief Justice B.R. Gavai stated that anti-defection cases must be resolved within three months to uphold the dignity of the Speaker’s office and prevent political defection from going unpunished.

The Court noted that such proceedings often die a “natural death” due to intentional delays by Speakers, making a mockery of the Tenth Schedule (anti-defection law). It criticized the Telangana Speaker for issuing notices only after the matter was brought to the Supreme Court in January 2025, despite a seven-month delay.

Chief Justice Gavai emphasized that no constitutional immunity protects the Speaker from judicial review when acting under the Tenth Schedule, and questioned whether the Speaker acted in an expeditious manner as expected by Parliament.

Learning Corner:

52nd Amendment Act and Anti-Defection Law:

1. 52nd Amendment Act, 1985:

• Added the Tenth Schedule to the Indian Constitution.
• Aimed at curbing political defections by legislators.
• Enacted during Rajiv Gandhi’s tenure as Prime Minister.
• Came into effect on 1 March 1985.

2. Anti-Defection Law (Tenth Schedule):

• Provides for disqualification of legislators (MPs/MLAs) on grounds of:
  • Voluntarily giving up membership of their party.
  • Voting/abstaining against party directives (whip) without permission.
• Exceptions:
  • Merger provision: If 2/3rd members of a party merge with another, disqualification does not apply.
• Decision Authority:
  • The Speaker/Chairman of the House decides disqualification petitions.

Source: THE HINDU

Category: POLITY

Context: Tamil Nadu Governor R.N. Ravi criticized the linguistic reorganization of states, claiming it created “second-class citizens” by dividing people based on language.

Key Highlights:

Historical Background:

• Before 1956, India’s states were categorized as Part A, B, C, and D, based on colonial legacy and integration history.
• Linguistic and administrative demands led to calls for restructuring post-Independence.

Reorganization of 1956:

• The States Reorganisation Commission (SRC) was formed in 1953 following widespread protests (notably Potti Sriramulu’s fast for Andhra).
• The SRC report (1955) emphasized language but also recommended balanced reorganization for national unity.
• The States Reorganisation Act, 1956 reorganized India into 14 states and 6 union territories.

Learning Corner:

Background: India Post-Independence (1950)

• After the Constitution came into effect in 1950, Indian territory was categorized into:
  • Part A States: Former British provinces (e.g., Bombay, Madras)
  • Part B States: Former princely states (e.g., Hyderabad, Mysore)
  • Part C States: Chief Commissioner’s provinces (e.g., Delhi, Himachal Pradesh)
  • Part D State: Andaman & Nicobar Islands

This structure was temporary and inefficient, prompting demands for reorganization, especially on linguistic lines.

Major Movements and the First Linguistic State (1953)

• Demand for linguistic states gained momentum, especially among Telugu, Marathi, Tamil, and Kannada speakers.
• The death of Potti Sriramulu after a hunger strike led to the formation of Andhra State (1953) from the Telugu-speaking areas of Madras.

Key Committees on Reorganization

States Reorganisation Act, 1956

• Based on SRC recommendations:
  • Abolished the A/B/C/D classification.
  • Created 14 states and 6 Union Territories.
  • Realigned boundaries largely on linguistic basis.

Subsequent State Formations and Changes

Source:  THE INDIAN EXPRESS

Category: GEOGRAPHY

Context : The Union Cabinet, has approved a Central Sector Scheme titled “Grant in aid to National Cooperative Development Corporation (NCDC)”.

Key Highlights:

• Objective: To help NCDC raise up to ₹20,000 crore from the open market to finance cooperatives.
• Usage: Funds will support loans for new cooperative projects, expansion of existing units, and working capital needs.
• Beneficiaries: Around 2.9 crore members from 13,288 cooperative societies across sectors like dairy, fisheries, sugar, textile, food processing, storage, and women-led cooperatives.
• Model: NCDC, with a 99.8% loan recovery rate and zero NPAs, will use the grant to enhance institutional financing for the cooperative sector.

Learning Corner:

National Cooperative Development Corporation (NCDC)

Established:

• 1963, by an Act of Parliament: National Cooperative Development Corporation Act, 1962.

Objective:

• To plan, promote, and finance programs for the production, processing, marketing, storage, export, and import of agricultural produce, foodstuffs, industrial goods, and livestock based on cooperative principles.

Key Functions:

• Provides financial assistance to cooperatives for:
  • Agro-processing and marketing projects
  • Storage and cold chain facilities
  • Dairy, poultry, fishery, and livestock development
  • Rural sanitation, healthcare, and infrastructure projects
• Promotes integrated cooperative development projects in rural areas.
• Facilitates capacity building and skill development of cooperative members.

Organizational Structure:

• Headquartered in New Delhi with 18 regional and state directorates.
• Operates under the administrative control of the Ministry of Cooperation, Government of India.

Key Initiatives:

• Sahakar Mitra: Internship programme for young professionals in the cooperative sector.
• Yuva Sahakar Scheme: Promotes startup ventures in cooperatives for youth.
• NCDC Ayushman Sahakar: Provides financial assistance for healthcare infrastructure in the cooperative sector.

Source:  PIB

Category: SCIENCE AND TECHNOLOGY

Context The Indian Navy received INS Himgiri, an advanced stealth frigate and the third ship under Project 17A, on 31 July 2025 at GRSE, Kolkata

Key Highlights:

• Project 17A Overview:
  • Seven Nilgiri-class frigates are being built—four by MDL (Mumbai) and three by GRSE (Kolkata).
  • Project cost is approximately ₹45,000 crore.
  • Himgiri is GRSE’s first in the series and the third overall.
• Design & Capabilities:
  • Length: 149 meters; Displacement: 6,670 tons.
  • Developed by the Warship Design Bureau with 75% indigenous content.
  • Features stealth design to minimize radar, acoustic, infrared, and magnetic signatures.
  • Successor to the earlier INS Himgiri (Leander-class), decommissioned in 2005.
• Propulsion & Weapons:
  • CODOG system (diesel + gas turbines), top speed over 28 knots, range of 5,500 nautical miles.
  • Equipped with:
    • BrahMos anti-ship missiles
    • Barak-8 LR-SAMs (VLS)
    • 76mm gun, CIWS, torpedoes, and anti-submarine rocket launchers
  • Advanced AESA radar, sonar systems, and a combat management suite.
  • Supports helicopter operations from its flight deck and hangar.
• Strategic Significance:
  • Enhances India’s blue-water naval capabilities and maritime self-reliance.
  • Built with involvement from over 200 MSMEs, creating 4,000 direct and 10,000 indirect jobs.
  • Expected to be commissioned by August 2025, alongside sister ship Udaygiri.

The induction of Himgiri reflects India’s growing strength in naval design, technology, and defense manufacturing.

Learning Corner:

Major Defence Projects in India

India has undertaken several key defence projects to boost indigenous capabilities under the Atmanirbhar Bharat initiative. Below are some important defence projects across the Army, Navy, and Air Force:

Project 75 (Submarine Development – Navy)

• Objective: Build six Scorpene-class diesel-electric submarines at Mazagon Dock Shipbuilders Limited (MDL), Mumbai.
• Status: Five commissioned (INS Kalvari, Khanderi, Karanj, Vela, Vagir); the sixth (INS Vagsheer) is under sea trials.
• Collaboration: With Naval Group, France.

Project 75I (Submarine Development – Navy)

• Objective: Build six advanced submarines with air-independent propulsion (AIP) under the Strategic Partnership model.
• Status: In the bidding stage; L&T and MDL shortlisted as builders.
• Goal: Strengthen underwater warfare capability.

Project 17A (Frigate Construction – Navy)

• Objective: Build seven stealth frigates (Nilgiri-class).
• Builders: MDL (4 ships) and GRSE (3 ships).
• Features: Stealth, indigenous sensors and weapons, modular design.
• Status: INS Nilgiri and INS Udaygiri (MDL), INS Himgiri (GRSE) delivered.

Project 18 (Next-Gen Destroyers – Navy)

• Objective: Design and build future-ready stealth destroyers with cutting-edge technology.
• Status: In preliminary design phase by the Warship Design Bureau.
• Planned tonnage: ~13,000 tonnes.

Light Combat Aircraft (LCA) Tejas – Air Force

• Objective: Indigenous fighter aircraft for IAF.
• Developer: HAL and ADA.
• Variants: Mk1 (in service), Mk1A (in production), Mk2 (development stage).
• Tejas Mk1A: 83 units ordered for delivery from 2024.

Advanced Medium Combat Aircraft (AMCA) – Air Force

• Objective: Fifth-generation stealth fighter.
• Developer: DRDO + HAL.
• Status: Final design approved, prototype development expected soon.
• Twin-engine, stealth, with internal weapons bay.

K-15 and K-4 Missile Projects (SLBMs – Navy)

• Part of the Strategic Forces Command.
• K-15: Short-range SLBM (~750 km).
• K-4: Intermediate-range SLBM (~3,500 km), tested from INS Arihant-class submarines.

Arjun Main Battle Tank (Army)

• Indigenous third-generation tank developed by DRDO.
• Arjun Mk1A: Enhanced variant with 72 upgrades.
• Inducted into the Indian Army in limited numbers.

Future Infantry Combat Vehicle (FICV) – Army

• Goal: Replace ageing BMP-2 vehicles.
• Indigenous design under procurement with participation from private sector.
• Features: Armored mobility, modular weapons, night vision.

Akash, Astra, and Pralay Missiles

• Akash: Surface-to-air missile system (SAM).
• Astra: Beyond Visual Range air-to-air missile (AAM) for fighter jets.
• Pralay: Surface-to-surface tactical ballistic missile with high-precision strike.

Source: PIB

Category: ECONOMICS

Context The Banking Laws (Amendment) Act, 2025 modernizes India’s banking framework with key reforms in governance, compliance, audit, and investor protection.

Key Provisions:

1. Substantial Interest Threshold Revised:
   • Increased from ₹5 lakh to ₹2 crore or 10% of paid-up capital (whichever is lower).
   • Enhances transparency and updates disclosure norms.
2. Director Tenure in Cooperative Banks:
   • Maximum tenure (excluding chairpersons/full-time directors) raised from 8 years to 10 years.
   • Aligns with the 97th Constitutional Amendment for cooperative governance.
3. Unclaimed Assets to IEPF:
   • PSBs and SBI must now transfer unclaimed dividends, shares, and bond amounts to the Investor Education and Protection Fund (IEPF) after 7 years.
4. Audit Reforms in PSBs:
   • PSBs can now fix auditor remuneration independently.
   • Aims to strengthen audit independence and attract top-tier professionals.
5. Modernized Reporting to RBI:
   • Shifts from weekly (Friday) reporting to fortnightly/monthly/quarterly basis.
   • Reduces compliance burden and aligns with global norms.
6. Minimum Capital Requirement Raised:
   • Paid-up capital for new banking companies increased from ₹5 lakh to ₹2 crore.
7. Legal Coverage:
   • Amendments made to:
     • RBI Act, 1934
     • Banking Regulation Act, 1949
     • SBI Act, 1955
     • Banking Companies Acts of 1970 and 1980

Learning Corner:

Major Committees on Banking Reforms in India

Narasimham Committee I (1991) – Committee on Financial System

• Purpose: To reform the financial system post-liberalization.
• Key Recommendations:
  • Reduce Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR).
  • Phase out priority sector lending gradually.
  • Recapitalize public sector banks (PSBs).
  • Set up Asset Reconstruction Funds.
• Impact: Initiated major banking sector liberalization and autonomy for RBI.

Narasimham Committee II (1998) – Committee on Banking Sector Reforms

• Purpose: To strengthen the banking system further.
• Key Recommendations:
  • Creation of stronger banks through mergers.
  • NPA management: Set up Asset Reconstruction Companies (ARCs).
  • Reduce government ownership in PSBs to under 33%.
  • Professionalize bank boards.
• Impact: Paved the way for Basel norms and banking consolidation.

Verma Committee (1999) – Committee on Weak Public Sector Banks

• Chairperson: M. S. Verma
• Purpose: Revive weak PSBs.
• Recommendations:
  • Clear performance benchmarks.
  • Incentivize performing employees.
  • Strengthen internal controls and MIS systems.

Tarapore Committee (1997 & 2006) – Capital Account Convertibility

• Purpose: Examine the feasibility of full capital account convertibility.
• Key Recommendations:
  • Fiscal consolidation, inflation targeting, and strong financial institutions as prerequisites.
  • Gradual liberalization of capital flows.
• Impact: Guided India’s cautious approach to capital account openness.

Raghuram Rajan Committee (2008) – Financial Sector Reforms

• Official Name: Committee on Financial Sector Reforms
• Purpose: Propose a comprehensive roadmap for inclusive financial growth.
• Recommendations:
  • Open up banking licenses to private players.
  • Encourage financial inclusion and small banks.
  • Strengthen financial literacy.
• Impact: Influenced new bank licensing policy and payments banks framework.

Nachiket Mor Committee (2013) – Financial Inclusion

• Purpose: Promote financial access for the underserved.
• Key Recommendations:
  • Establish Payments Banks and Wholesale Banks.
  • Universal access to bank accounts by 2016.
• Impact: Led to RBI issuing licenses for Payments Banks.

1. J. Nayak Committee (2014) – Governance of Bank Boards

• Purpose: Improve governance in PSBs.
• Recommendations:
  • Set up Bank Investment Company (BIC) as a holding company for PSBs.
  • Reduce government interference in appointments and operations.
  • Board-level reforms and enhanced autonomy.
• Impact: Influenced discussions on PSB privatization and governance reforms.

Usha Thorat Committee (2010) – Licensing of New Urban Cooperative Banks

• Purpose: Suggest licensing norms for new UCBs.
• Recommendations: Strengthen supervisory control and improve fit-and-proper criteria.

Source: PIB

Introduction (Context)

Prime Minister Narendra Modi recently concluded a two-day state visit to the Maldives, signalling a reset in ties between the countries, after a period of strain following the election of President Mohamed Muizzu in November 2023. 

Mr. Modi was also the Guest of Honour at the country’s 60th Independence Day celebrations, held in the capital Male on July 26, 2025. 

History of India – Maldives relations

• India and the Maldives have shared a historically friendly and strategic partnership based on geographical proximity, cultural ties, economic interdependence, and security cooperation. 
• India and Maldives established diplomatic relations on November 1, 1965, soon after the latter gained Independence from the British. 
• It was the third nation to do so, after the United Kingdom and Sri Lanka.
• The first resident mission of the Maldives in India was established in 2004, with a consulate established in Thiruvananthapuram in 2005.

Significance of Maldives for India

• Maldives lies near crucial International Sea Lanes (ISLs) between the Gulf of Aden, Strait of Hormuz, and Strait of Malacca. Over 80% of India’s trade by volume and energy supplies pass through these waters.
• Maldives helps India monitor the chokepoints in the Indian Ocean, essential for anti-piracy and maritime surveillance.
• Cooperation in intelligence sharing and joint naval exercises (like Exercise Ekatha) boosts regional stability.
• Indian professionals (teachers, doctors, engineers) contribute to Maldives’ public services. Cultural and religious similarities foster soft power diplomacy.
  
• Maldives is a partner in SAARC, IORA, SASEC, Colombo Security Conclave and supports India’s position in forums like the UN Security Council

India–Maldives Strategic and Diplomatic Ties

• The two nations have engaged in peaceful bilateral co-operation and trade
• Conducted bilateral defence exercises such as:

• • Bi-annual series of Coast Guard maritime joint training exercises, launched in 1991, codenamed DOSTI. 
  • Colombo Security Conclave: Regional security initiative led by India.
  • The two nations have held joint army training exercises titled Ekuverin.

• Maldives and India are both members of the South Asian Association for Regional Co-operation (SAARC), and have been aligned on issues of regional security. 
• Maldives has reportedly supported India’s bid to become a permanent member of the United Nations Security Council.
• India has also offered military support during the November 3, 1988 coup attempt in the Maldives. 
• India has also offered humanitarian assistance to Maldives, such as in the aftermath of the devastating 2004 tsunami in the Indian Ocean. In turn, Maldives has offered assistance post natural disasters such as the Gujarat earthquake in 2001.
• India has also contributed to infrastructure projects in the area, including the Greater Male Connectivity Project.

Reasons for recent constraints

• Post‑Muizzu’s election (Nov 2023), Maldives adopted an India‑Out stance.
• The inking of several agreements with China also deepened the Indian government’s concerns about growing Chinese influence in the region. 
• Established INS Jatayu naval base in Minicoy (Lakshadweep) to enhance maritime surveillance near Maldives.

Recent Initiatives

• Leaders from both nations announced the commencement of discussions on a Free Trade Agreement. 
• India announced a ₹4,850 crore line of credit for the Maldives, and reduced the annual debt repayment obligation of the Maldives by 40% (from $51 million to $29 million). 
• An India-Maldives Parliamentary Friendship Group has also been created in the 20th Majlis.

Way forward

• Reduce visible military footprint; focus more on capacity-building, education, health, and green technology.
• Use platforms like SAARC, IORA, and Colombo Security Conclave to align mutual interests.
• Promote public diplomacy and cultural exchanges to counter anti-India narratives.
• Establish long-term MoUs, FTA, and track-2 dialogues to deepen ties beyond short-term politics.

Mains Practice Question

Q Discuss the strategic importance of the Maldives for India. In light of recent political developments in Maldives, analyse the challenges faced by India in maintaining its influence in the region. Suggest measures to strengthen bilateral ties. (250 words, 15 marks)

Source: https://www.thehindu.com/news/international/the-maldives-a-brief-history-of-the-nation-and-its-ties-with-india/article69858239.ece

Introduction (Context)

Kerala has long stood out as a success story with near-universal literacy, strong gender parity in education, and robust public schooling systems, it is often held as a model State in India’s educational discourse.

According to the Periodic Labour Force Survey (PLFS) 2022-23, Kerala reports a graduate unemployment rate of 42.3%, one of the highest in the country. 

For a State often viewed as educationally forward, this statistic raises troubling questions about the relationship between academic learning, employability, and the structural design of our higher education policy.

Issues in higher education system

1. Elite Capture of Higher Education

• Access to quality higher education in India remains limited to a privileged few, often determined by socio-economic background, not merit.
• Elite institutions (IITs, IIMs, top central universities) are disproportionately accessed by students with better schooling, coaching, and financial support.
• Reservation and scholarships offer limited symbolic inclusion but fail to significantly alter structural inequalities.

2. Inequality Between Institutions

• A large quality gap exists between elite and non-elite colleges.
• Students from top institutions secure high-paying jobs, while those from others face low employability and stagnant wages.
• This has created an educational hierarchy that favors institutional brand over individual potential.

3. Mass Enrolment, Minimal Gain

• Over 90% of students attend non-elite institutions with poor teaching quality and weak industry links.
• Underemployment is widespread even among graduates, especially in general and arts streams.
• Additional years in college are no longer a guarantee of employment or upward mobility.

4. Growing Skills-Job Mismatch

• According to the Graduate Skill Index 2025 Employability fell from 44.3% in 2023 to 42.6% in 2024. This reflects a growing disconnect between curriculum and market needs.

5. Persistent Social Inequities

• Despite growth in overall enrolment, caste-based disparities in participation remain.
• Female enrolment now exceeds male, but it’s unclear whether this will lead to equitable employment and empowerment.
• Marginalized groups still face significant barriers to access and success.

6. Unregulated Privatisation and Declining Quality

• Rapid expansion of private colleges without oversight has led to low teaching standards, high costs, and poor placement outcomes.
• The growth has been quantitative, not qualitative.

7. Parallel Education Industry

• The coaching and private tutoring ecosystem has grown alongside formal institutions.
• It further commercializes education and reinforces the divide between the well-prepared elite and the rest.

Key Issues with respect to Kerala

• Kerala’s educational model has traditionally emphasized formal academic pathways with relatively less focus on vocational or skill-based education.
• As per the Kerala State Planning Board’s Economic Review 2023, while higher education enrolment is robust, nearly 70% of courses offered are in general streams like humanities and pure sciences, with minimal alignment to industry-specific or emerging sectors.
• Colleges and universities in Kerala are not linked with industries or job markets. Unlike Germany (with its dual vocational education system), Kerala does not have enough practical training during studies.
• Most courses are not updated to include new technologies or current job trends (like AI, data, green energy). 
• NSDC (2022) points out, only 17% of Indian youth receive formal vocational training, compared to 52% in the United States and 75% in Germany. This gap reflects both cultural and institutional inertia against vocational pathways, often stigmatized as inferior to mainstream degrees.
• According to the Kerala Economic Review (2023), less than 10% of state-funded higher education institutions offer STEM-oriented vocational programs, despite rising job demand in such sectors.
• The Centre for Development Studies reports that over 2.1 million Keralites live and work abroad, primarily in the Gulf, many of whom are graduates unable to find appropriate jobs at home. While remittances help the State’s economy, they also reflect a failure of domestic job creation and talent retention.

Examples from other states

• Tamil Nadu has built a relatively stronger network of polytechnic institutions and vocational training centers. As per NSDC’s Tamil Nadu Skill Gap Report, the state’s industrial linkages and sector-focused skilling have helped reduce the incidence of graduate unemployment to 23.4% (NSDC, 2022).
• Karnataka, with its growing tech ecosystem, has similarly diversified its post-secondary offerings through public-private training collaborations that provide students with both soft and hard skills. 
• In Bihar, the graduate unemployment rate stands at 33.9% (PLFS 2022-23), while only 25.7% of youth aged 18–23 are enrolled in any form of higher education (AISHE, 2021-22). The challenge here is dual: improving access to quality education while ensuring it meets market relevance.

Key reforms needed

• A robust career guidance system must be introduced in secondary schools. Lack of guidance leads students to choose degrees without understanding job prospects or industry relevance.
• Vocational education should be treated as equal to academic education, not inferior.
• Kerala can draw from Germany’s Berufsschule model or Singapore’s Institute of Technical Education, which blend classroom learning with real-world apprenticeships.
• States must establish employment-linked metrics in evaluating higher education institutions. Tamil Nadu’s recent move to integrate placement statistics into college rankings could be adapted across States.
• National bodies like NSDC and the Ministry of Education must work together to ensure skilling programs are not isolated from formal education.
• There must be institutional collaboration between universities and skill development agencies.
• The government can form a National Skills Registry that can track student outcomes across degree programs, job sectors, and geographies can aid both planning and accountability.

Conclusion

In sum, Kerala’s graduate unemployment is not merely a state-specific problem; it is a mirror reflecting the structural inefficiencies in India’s education-employment continuum. The nation must move beyond celebrating enrolment numbers and focus instead on educational utility.

Mains Practice Question

Q Kerala’s high graduate unemployment despite near-universal literacy reveals deep structural flaws in India’s education-employment ecosystem. Critically examine (250 words, 15 marks)

Source: https://www.thehindu.com/education/the-kerala-paradox-of-100-literacy-but-only-42-graduate-unemployment-a-policy-misalignment/article69874393.ece