Current Affairs – August 26, 2025

{GS2 – Governance – Initiatives} Government Allows Transition from UPS to NPS

Context (TH): The Union Finance Ministry has introduced an option for Central Government employees to shift from the Unified Pension Scheme (UPS) to the National Pension System (NPS).

Objective: To provide pension flexibility and reinforce NPS as the sustainable long-term solution.
Timelines: Switch allowed up to one year pre-superannuation or 3 months pre-voluntary retirement.
Irreversible: The Switch is one-way; missing timelines keep employees permanently under UPS.
Exclusions: Employees facing dismissal, removal, or disciplinary action are ineligible.

Context (TH): Recent FIRs against a Lokniti researcher and notices to the Centre for the Study of Developing Societies (CSDS) highlight a worrying decline in academic freedom.

The issue started with a Lokniti post sharing incorrect data on Maharashtra’s electoral rolls, but the government’s response expanded to action against research institutions.

Key Issues

Disproportionate Response: Researchers face actions for data mistakes, even when corrected, showing intolerance for independent scrutiny.
Coordinated Pressure: Institutions like CSDS-Lokniti and the Centre for Policy Research face funding cuts, tax probes, and licence cancellations, indicating a systematic effort to silence dissent.
Declining Rankings: India ranks in the bottom 20% of the 2024 Academic Freedom Index, reflecting increased targeting of research voices.

Significance

Policy-making requires rigorous, transparent research.
Silencing research institutions undermines good governance, accountability, and public trust.

{GS3 – IE – Inflation} Inflation Targeting Framework

Context (IE): The RBI published a discussion paper concerning the inflation targeting framework.

India’s Inflation Targeting Framework

Inflation targeting is a monetary policy framework in which the RBI sets clear inflation rate targets and modifies interest rates to ensure stability.
Adoption & Review: Adopted in 2016; reviewed every five years, with the next review in 2026.
Target & Rationale: RBI maintains 4% CPI target within a 2–6% band, balancing growth.
Measurement Basis: India targets headline inflation, capturing food and fuel price volatility.
International Practice: Most countries target headline inflation; Uganda uniquely targets core inflation.

Recent Inflation Trends in India

Retail inflation fell to 1.55% in July 2025, the lowest in eight years.
Core inflation eased to 4.1%, indicating subdued underlying pressures.
Since 2014, headline inflation has ranged between 1.5% and 8.6%, mainly driven by food.
Food inflation fluctuated widely from –2.7% to 14.2%, amplifying overall volatility in headline inflation.

Inflation Trends in India

Credit: IE

Read More> Inflation | Inflation Targeting Framework

{GS3 – IE – Taxes} GST Exemption on Insurance

Context (IE): The Group of Ministers (GoM) has proposed scrapping the 18% GST on premiums for life insurance policies, raising concerns within the industry.

Key Concerns

No ITC: GST exemption blocks Input Tax Credit on key services, higher operational costs, reducing insurers’ profit margins.
Tax Imbalance: Higher GST on inputs vs. nil GST on output creates unutilised credit, causing financial inefficiencies.
Premium Pricing: Without ITC, base premiums may rise, potentially negating the consumer benefit of GST exemption.

Input Tax Credit under GST allows businesses to deduct the tax paid on inputs (goods or services) from the tax payable on their output.

Suggested Alternatives

Zero-rated insurance retains Input Tax Credit (ITC) while making premiums GST-free.
A 5% GST rate with ITC offers reduced tax while ensuring balanced relief.

{GS3 – IE – Taxes} Waiver of Cotton Import Duty

Context (IE): The Central Board of Indirect Taxes and Customs (CBIC) waived the 11% import duty on cotton to reduce US tariff impacts on India’s labour-intensive textile sector.

Objectives: To stabilise prices, improve cotton supply, protect SMEs, and boost export competitiveness.
Rationale: India’s textile and apparel exports to the US dropped to 3.3% in June 2025, falling behind Vietnam and Bangladesh.

About the Textile Sector

The sector accounts for 4% of global textile trade, 2% of GDP, and 7% of industrial output (2023).
Cotton supports about 35 million jobs and makes up 80% of India’s textile exports.
India targets doubling textile and apparel exports to $100 billion by 2030.

Read More> Textile Industry

{GS3 – IE – Industry} India’s EV Export Push

Context (HT | NOA): PM Narendra Modi inaugurated Gujarat’s first lithium-ion electrode facility and launched EV exports to 100 countries.

Export Milestone: India quantified EV export footprint for the first time, signalling global ambition.
Global Leverage: Export orientation benefits the automobile sector with an international presence.
Strategic Rationale: Domestic R&D cuts import costs and aids India’s 30% EV sales goal by 2030.

India’s Automobile Sector

Domestic Scale: India is the world’s third-largest auto market, selling over 4 million cars each year.
Export Growth: India’s automobile exports have doubled in a decade to ₹1.2 lakh crore.
Global Footprint: India now exports not only cars but also metro coaches, rail coaches, & locomotives.
Employment: The sector sustains approximately 37 million jobs, boosting industrial growth.
Economic Share: It makes up about 7% of India’s GDP and around 3% of global trade.

{GS3 – IS – Issues} Salwa Judum Campaign in Chhattisgarh

Context (IE): The 2025 Vice Presidential election reignited political debate over Salwa Judum.

Salwa Judum, “peace march” in Gondi, was a state-sponsored vigilante campaign in Chhattisgarh.
Objective: Designed to counter Maoist insurgency, expand manpower, and protect relief camps.
Tribal villagers were mobilised as Special Police Officers (SPO), popularly known as Koya Commandos.
SPOs were appointed under the Chhattisgarh Police Act 2007, bypassing mandatory magisterial approval.
Criticism: Salwa Judum was accused of forced displacement, civilian abuses, and retaliatory violence.

About the Salwa Judum Case

Nandini Sundar vs State of Chhattisgarh (2007) challenged SPO recruitment before the Supreme Court.
Allegations: Petitioners cited unconstitutional appointments and violations of human dignity.
Defence: State argued SPO recruitment was voluntary, locally vetted, and strengthened security.
Ruling: Supreme Court disbanded Salwa Judum, mandating counterinsurgency only by trained forces.
Grounds: Court found SPO deployment discriminatory and life-threatening, breaching Articles 14 & 21.

{GS3 – Envi – Degradation} Economic Cost of Invasive Species

Context (TH): A study shows invasive plants cause the highest global economic costs, with India recording the highest discrepancy in management expenditure.

India’s Hidden Burden

Reporting Gap: India shows the world’s highest underreporting in invasive species management, with a 1.16 billion % cost discrepancy, highlighting that actual spending is vastly under-documented.
Fragmented Governance: Absence of a centralised national database, coupled with weak inter-agency coordination (forest, agriculture, trade, ports), prevents accurate cost capture.
Financial Underestimation: Much of the expenditure by state forest departments, NGOs, and local communities remains outside formal records, creating a “hidden economy of management.”
Knowledge Bias: Studies in regional languages and grey literature are often excluded from global datasets (e.g., InvaCost), skewing the true picture of India’s burden.
On-ground Reality: Species such as Lantana camara in Bandipur National Park not only raise fire risks but also reduce grazing land, harm wildlife habitats, and undermine eco-tourism revenues.

Challenges

Invasive species spread is fuelled by trade, travel, and globalisation, complicating control measures.
Eradication is not always viable since many non-native species are integrated into agriculture.
Current international frameworks have slowed invasion rates, but India lags in documentation, monitoring, and strategic funding.

Policy Measures

Convention on Biological Diversity obliges India to prevent, control, or eradicate invasive alien species.
Ballast Water Management Convention regulates shipping to curb aquatic invasions.

Ballast Water Management (BWM) Convention enforced by the International Maritime Organization (IMO) in 2017 to prevent the spread of harmful aquatic organisms and pathogens via ballast water.

Way Forward

Establish centralised data systems and strengthen inter-agency coordination.
Invest in prevention, early detection, and scientific management.
Treat invasive species as both an ecological and economic challenge, not just a biodiversity issue.

{GS3 – Envi – Degradation} Melting of Arctic Sea Ice Slows Down

Context (IE): A recent study has found that Arctic sea ice melting has slowed over 20 years, a temporary phase, not climate recovery.

Key Findings

Slower Loss: From 2005 to 2024, Arctic Sea ice declined at 0.35 million sq km per decade, four times slower than the 1.3 million sq km loss between 1993 and 2012.
Temporary Trend: This slowdown is temporary and may reverse in 5-10 years, causing faster melting.
Climate Variability: Natural climate cycles like the Pacific Decadal Oscillation may have brought cooler waters, reducing the melt.

The Pacific Decadal Oscillation (PDO) is a long-term climate pattern in the Pacific Ocean, marked by sea surface temperature shifts lasting 20-30 years.
It affects weather, temperature, precipitation, and ocean conditions across the Pacific and beyond.

Implications

GHG emissions and global temperatures continue to rise, showing no slowdown in climate change.
After the slowdown, sea ice loss may increase by 0.6 million sq km per decade.
Accelerated melt will intensify warming, raise sea levels, and threaten Arctic ecosystems.

{GS3 – Envi – Species} Eight Firefly Species in Anamalai Tiger Reserve

Context (TH): Tamil Nadu Forest Department identified eight firefly species in Anamalai Tiger Reserve.

Researchers used DNA barcoding & phototactic studies to confirm firefly species identity.
Anamalai TR illuminates annually as lakhs of fireflies synchronously flash during mating displays.

About Fireflies

Fireflies are soft-bodied beetles capable of emitting light for communication.
Luminescence: Light originates from a biochemical reaction catalysed by the enzyme luciferase.
Habitat: They inhabit moist forests, wetlands, agroecosystems, and vegetation near water bodies.
Distribution: Occurs worldwide except Antarctica, with the highest richness in Asia & Latin America.
Diet: Larvae feed on snails and worms, while adults mainly consume nectar and pollen.
Ecological Role: They regulate insect populations and contribute to pollination and soil fertility.
Threats: Habitat destruction, pesticide usage, and artificial light pollution reduce populations.
Diversity: Around 2,000 species worldwide, with nearly 60 species in India.

Source: Wikipedia

About Anamalai Tiger Reserve

Location: Situated in Tamil Nadu’s Anamalai Hills, south of the Palakkad Gap in the Western Ghats.
Vegetation: Contains tropical evergreen, moist deciduous, montane shola forests, and grasslands.
Flora: Harbours wild relatives of turmeric, cardamom, pepper, nutmeg, and cinnamon.
Fauna: Supports tigers, Asian elephants, and lion-tailed macaques as flagship species.
Tribes: Occupied by indigenous groups including Malasars, Kadars, Muduvars, Eravalars, and Pulayars.

{GS3 – S&T – Space} Fast Radio Burst RBFLOAT

Context (IT): Astronomers detected RBFLOAT, the brightest and closest known non-repeating fast radio burst, offering insights into high-energy cosmic events.

About Fast Radio Bursts (FRBs)

Fast Radio Bursts are millisecond-long flashes of high-energy radio waves from distant galaxies.
Source: Theories suggest magnetar flares or neutron-star mergers trigger powerful radio bursts.
Types: FRBs are classified into repeaters with periodic signals and non-repeaters, such as RBFLOAT.
Significance: FRBs help study intergalactic plasma, magnetic fields, and universal matter distribution.
Limitations: Their short duration and rare occurrence make precise localisation difficult.

Radio Brightest Flash of All Time (RBFLOAT)

RBFLOAT is a non-repeating fast radio burst from spiral galaxy NGC-4141.
Uniqueness: At ~130 million light-years, RBFLOAT is the closest and brightest FRB recorded.
Detection: Canada’s CHIME telescope and outriggers enabled precise localisation of the burst.
Significance: Its proximity enabled JWST-based multi-wavelength study, advancing FRB research.

Neutron Stars: Extremely dense stellar remnants formed after the supernova collapse of massive stars.
Magnetars: Highly magnetised neutron stars, flaring violently, producing intense X-ray & radio bursts.

{GS3 – S&T – AI} OpenAI Launches India-First Learning Accelerator

Context (IE): OpenAI launched its first India-focused Learning Accelerator to transform education with AI and will open its first office in New Delhi, expanding into its second-largest user market.

Collaborates with IIT Madras with a $500,000 research grant for AI-driven learning studies.
Plans to distribute 500,000 ChatGPT licenses to educators and students over six months in partnership with the Ministry of Education.

{Prelims – In News} National Youth Award

Context (PIB): The Ministry of Youth Affairs & Sports has invited nominations for the 2024 National Youth Award to motivate youth (15–29 years) for excellence in national development and service.

Objective: Conferred during the National Youth Festival to promote youth responsibility and recognise voluntary organisations’ contributions.
Award Categories: 20 individual awards and five organisation awards, recognising youth service.
Prize Structure: Consists of a medal and certificate as recognition awards, along with cash prize money.

National Youth Festival: On January 12, it commemorates Swami Vivekananda’s birth anniversary.

{Prelims – In News} Lok Samvardhan Parv

Context (PIB): The Ministry of Minority Affairs is hosting the 5^th Lok Samvardhan Parv in Kochi, Kerala.

Objective: A flagship initiative to connect artisans, weavers, craftspersons, chefs, and entrepreneurs from minority communities with market opportunities.
Cultural Showcase: Zari (UP), Phulkari (Punjab), Madhubani (Bihar), Blue Pottery (Rajasthan), Pashmina (Ladakh), Channapatna (Karnataka), Nettippattam (Kerala), and traditional cuisines and performances.

Zari (Uttar Pradesh): Intricate gold-silver thread embroidery, historically patronised by Mughal royalty.
Phulkari (Punjab): Traditional floral embroidery on shawls, symbolising auspicious occasions.
Nettippattam (Kerala): Golden headgear for temple elephants, symbolising Kerala’s festival heritage.

{Prelims – In News} Committees to Mark Anniversaries of National Icons

Context (NOA): The Centre has set up three committees to mark the 150^th birth anniversaries of Sardar Vallabhbhai Patel and Birsa Munda, and the birth centenary of Atal Bihari Vajpayee.

Sardar Vallabhbhai Patel (1875-1950)

Known as the Iron Man of India.
Integrated 565 princely states into the Union of India, a historic political achievement.

Birsa Munda (1875-1900)

Revered tribal leader and freedom fighter, known as Bhagwan and Dharti Abba by tribal communities.
Led the Ulgulan (Rebellion) against British exploitation and oppression.

Atal Bihari Vajpayee (1924-2018)

Three-term Prime Minister who led Pokhran-II nuclear tests in 1998, asserting India’s strategic strength, and was awarded Bharat Ratna in 2015.
His birthday, 25 December, is observed as Good Governance Day.

{Prelims – In News} National Sports Day 2025

Context (PIB): The Ministry of Youth Affairs and Sports will celebrate National Sports Day 2025 as a three-day nationwide fitness movement from August 29 to 31.

Theme: ‘Ek Ghanta, Khel ke Maidan Main’, under the Fit India Mission.
Objective: Support India’s 2036 Olympics vision by promoting modern and indigenous sports.
Initiatives: A National Conclave on Sports Manufacturing will be held under Aatmanirbhar Bharat, and the Fit India App will add a Carbon Savings Incentive feature.

National Sports Day, on August 29, marks Major Dhyan Chand’s birth anniversary; first observed in 1995, it marked the launch of the Fit India Movement in 2019.

{Prelims – One Liners} Typhoon Kajiki

Context (TH): Typhoon Kajiki, 2025’s strongest storm with winds up to 166 km/h, is expected to intensify before making landfall in Vietnam.

A typhoon is the regional term for a tropical cyclone, a powerful rotating storm that forms over warm waters in the Northwest Pacific Ocean, affecting countries like Japan, China, Vietnam, and Philippines.

{Prelims – One Liners} CISF’s First All-Women Commando Team

Context (TI): The Central Industrial Security Force (CISF) has announced an all-women commando unit to conduct specialised counter-terror operations, safeguarding sensitive national installations.