Current Affairs – July 18, 2025

{GS1 – IS – Issues} Upholding Linguistic Secularism

• Context (TH): India’s linguistic and religious diversity is central to its secular identity. However, recent language-based violence, notably in Maharashtra, threatens this ethos.

• With 121 languages and 270 mother tongues (2011 Census), protecting linguistic pluralism is vital to preserving India’s unity in diversity.

Understanding Indian Secularism

• Inclusive Model: Distinct from the Western model, Indian secularism is not a strict separation of state and religion, but a model of equal respect for all religions and communities (Sarva Dharma Sambhava).
• Constitutional Foundations: Enshrined in Articles 25-28, it protects the freedom of conscience and religion. Importantly, Indian secularism recognises language as an equally vital identity marker.
• State’s Role: The state neither promotes nor suppresses any religion or language and can actively intervene to curb both religious and linguistic communalism.

Why India Has No National Language

• Constitutional Design: India does not have a national language. Article 343 designates Hindi (in Devanagari script) as the official language of the Union, not the national language.
• Linguistic Autonomy: States are free to choose their own official languages based on cultural context, reinforcing India’s linguistic federalism.
• Cultural & Linguistic Rights: Under Article 29, every citizen, particularly minorities, is guaranteed the right to conserve their distinct language, script, and culture.
  • It also provides protection against discrimination on the basis of language, upholding India’s pluralistic ethos.
• Eighth Schedule: Recognises 22 languages, covering the mother tongues of 96.71% of the population. Yet, 99 languages remain outside the Schedule, reflecting the scale of India’s language diversity.

Recent Challenges to Linguistic Secularism

• Identity Politics: Recent violence against non-Marathi speakers in Maharashtra marks a troubling rise in identity politics disguised as cultural protection.
• Imposition Fears: Southern and northeastern States, especially Tamil Nadu, have historically resisted Hindi imposition, defending local linguistic autonomy.
• Undermining pluralism: When political groups use language identity to exclude or intimidate, it distorts cultural pride and fractures India’s inclusive federal structure.

Way Forward

• Policy Safeguards: Ensure equity in language policy by promoting multilingual education and the use of diverse languages in administration, education, and public communication.
• Political Responsibility: Political leaders must avoid divisive rhetoric and promote inclusive narratives around language and culture.
  • Parties should support policies that celebrate diversity rather than consolidate majoritarian linguistic identities.
• Civic Engagement: Citizens must actively uphold linguistic respect through everyday interactions, inclusive education, and respectful public discourse to nurture a culture of mutual coexistence.

• Institutional Oversight: Strengthen the role of the Commissioner for Linguistic Minorities and uphold protections under Articles 29 and 30 to safeguard linguistic minority rights.

{GS2 – Social Sector – Health} Health Ministry’s Advisory on Fats and Sugars

• Context (PIB): The Union Health Ministry issued an advisory for workplaces to display boards highlighting the harmful effects of hidden fats and excess sugar in food items.

• The initiative is part of the National Programme for Prevention and Control of Non-Communicable Disease (NP-NCD).
• The advisory acts as a behavioural nudge by promoting mindful dietary choices.
• Objective: It aims to decrease obesity, diabetes, and hypertension, which make up over 60% of deaths in India.

Key Components

• Healthy Eating: It encourages the inclusion of fruits, vegetables, and low-fat options in daily meals.
• Physical Activity: It recommends using stairs and taking short exercise breaks at work.
• Workplace modifications: It suggests installing health boards and designing a walk-friendly office.

About NP-NCD It is a centrally sponsored scheme under the National Health Mission aimed at preventing, screening, and managing major non-communicable diseases (NCD) through primary healthcare systems. Launch and Expansion: It was launched in 2010 (as NPCDCS) and expanded in 2023 to include a broader range of NCDs. Diseases Covered: It addresses major NCDs, including cardiovascular disorders, cancers, chronic respiratory conditions, diabetes, kidney and liver diseases, and mental health issues. Service Delivery: It covers screening, diagnosis, and management at Health and Wellness Centres, PHCs, CHCs, and district hospitals. Digital Platform: The initial system under NPCDCS was renamed the National NCD Portal in 2023 to reflect its expanded functions.

{GS3 – IE – Employment} Changing Landscape of Employment in India

• Context (TH): Lakhs of youth graduate each year in India, but most fail to secure formal, skill-matched employment due to systemic mismatches.

India’s Employment Scenario

• India’s labour market reflects deep structural issues, marked by high informality, stagnant formal job growth, and a widening skill gap among youth.

• High Informality, Low Security: As per the India Employment Report 2024, 90% of jobs are informal. Regular salaried jobs have declined since 2018, showing a shift toward insecure work.
• Rise in Contractual Work: Contract jobs with low job security and social protection have grown steadily.
• Low Vocational Training: Only 3.7% of India’s workforce has formal vocational training, limiting access to sector-specific jobs.
• Youth Formalisation Pattern: Recent EPFO data shows 18–21-year-olds comprise 18–22% of new subscribers, indicating slow growth of youth participation in the formal workforce.
• Youth Unemployability: As per the Economic Survey 2023–24, only 50% of graduates are job-ready, reflecting poor alignment between education and market needs.

Challenges in Employment

• Education–Employment Gap: Youth unemployment among those with secondary or higher education has nearly doubled in the past 20 years, indicating that degrees alone are insufficient.
• Youth-Centric Joblessness: Youth make up 83% of India’s unemployed, highlighting systemic barriers to entry-level jobs.
• Digital Skill Gap: Over 75% of young people struggle to send emails with attachments, and 90% lack basic spreadsheet skills, which limits their access to entry-level digital roles.
• Weak Industry Linkages: Limited collaboration between academic institutions and employers hampers internships, real-world training, and smooth job transitions.
• Urban–Rural Disparity: Rural graduates face more barriers in digital infrastructure, skilling, and employment networks than urban graduates.
• Gendered Disparity: Urban female youth face nearly 24% unemployment due to safety issues, inflexible work, and caregiving.
• AI and Automation Risk: Without targeted upskilling, automation may soon replace many mid-skill tech and clerical jobs.

Future Job Dynamics The Future of Jobs Report 2025 estimates that by 2030, 170 million new jobs will be created, while 92 million existing jobs will be displaced. By 2030, global employment is projected to grow by 7%, primarily in skilled sectors. There will be a growing need for AI engineers, cybersecurity analysts, and data specialists.

Way Forward

• Curriculum Reform: Soft skills, digital literacy, and applied learning should be integrated across all education levels.
• Mandatory Industry Linkages: Higher education institutions should establish formal partnerships for training, internships, and placements.
• Placement-Based Accreditation: Institutions should be ranked based on placement results, not solely on academic records or degree numbers.
• Global Skill Alignment: Training should align with international demands by using frameworks like the EU’s Link4Skills project.
• Indian Education Services: A dedicated service should be created to guide long-term education sector reforms.

{GS3 – IE – Banking} Stablecoins and India’s Fintech Future

• Context (IE): The recent passage of the GENIUS Act by the U.S. marks a turning point in global finance, positioning stablecoins as strategic tools of monetary diplomacy.

• As India readies its crypto framework, it has a timely opportunity to chart a distinct leadership path in fintech.

U.S. Digital Dollar Strategy With the GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins Act) Act, the US has allowed banks and tech giants (like Amazon and Walmart) to issue stablecoins. These coins, backed by US Treasury Bills, expand global demand for US debt, reducing borrowing costs and reasserting dollar dominance in a digital age.

India’s Strategic Opportunity

• Borrowing Costs: Tokenised government securities can create a new class of safe digital assets, helping reduce India’s ~6% borrowing costs by attracting retail and institutional investors.
• Market Participation: Secure, digital financial instruments can encourage more households to shift from traditional savings (like gold or FDs) to formal investments.
• Digital Infrastructure: India’s robust platforms like UPI, Aadhaar, and ONDC provide a ready ecosystem for stablecoin integration into financial services.
• Financial Inclusion: Safe and accessible digital assets can expand financial access, particularly among tech-savvy youth, gig workers, and underserved rural populations.
• Economic Sovereignty: Developing a domestic stablecoin ecosystem will reduce dependence on foreign digital currencies, safeguarding fiscal and monetary autonomy.
• Formalising Innovation: A regulated environment would curb illicit activities like digital hawala, encourage compliance, and transform blockchain innovation into a legitimate economic pillar.

Policy Gaps

• Regulatory Vacuum: Globally, mainstream crypto adoption is increasing, Emirates Airlines now accepts it, while India still lacks a formal framework.
• Delayed Guidelines: The long-pending crypto policy paper by the Department of Economic Affairs (DEA) adds to investor uncertainty and stalls institutional participation.
• Risk to Consumers: In the absence of clear rules, users remain vulnerable to fraud, volatile assets, and unregulated platforms.
• Innovation Flight: Indian developers are already global leaders in blockchain and fintech, but often operate from regulatory havens like Singapore or Dubai.

Way Forward

• Regulatory Framework: DEA must fast-track its crypto regulation paper to provide clarity & legitimacy.
• Build Trust: Peg stablecoins to government bonds to enhance stability, improve transparency, and reduce the sovereign debt servicing burden.
• Domestic Innovation: Create regulatory sandboxes for blockchain startups and incentivise those operating within Indian jurisdiction.
• International Alignment: Engage with global fintech norms through forums like the G20, while framing India-specific safeguards.
• Educate Consumers: Launch digital literacy campaigns to familiarise citizens with regulated digital assets and their benefits.

Read More> Stablecoin

{GS3 – IE – Resources} Slowdown in Corporate Investments

• Context (TH): India is witnessing a slowdown in private investments, despite policy interventions, raising concerns over the effectiveness of existing economic stimuli.

Key Factors for Slowdown in Corporate Investments

• Muted Demand: Investment relies on demand for goods. Hence, with low consumer demand, it discourages new investments.
• Inflation: Due to persistent Inflation (~4.9%) and low purchasing power at one end, steps like slashing corporate tax to 22% post-pandemic did not yield the desired results at the other end.
• Sluggish Production: As of June 2025, the Index of Industrial Production growth dropped to a nine-month low of just 1.2%, reflecting stagnant industrial activity. (MoSPI).
• Low Capital Formation: Private sector Gross Fixed Capital Formation (GFCF) in machinery, equipment grew only 35% over four years up to FY23, delaying gains in manufacturing and job creation.

• Economic Survey 2024 noted that despite corporate profits, job creation didn’t keep pace.

• Capital Expenditure (Capex): Despite higher public capex (3.1% of GDP, FY 2025-26), its impact is limited due to project delays, high import content, and low job creation, which weakens its ability to spur private investment.
• Ineffective Credit: Firms are reluctant to invest despite low interest rates and ample liquidity, as pessimistic profit expectations prevail.
• Bond Market: India’s Bond market is one of the least capitalised in the world, due to unattractive interest rates. E.g. India’s capitalisation ~$2.69trillion; USA > $51 trillion.
• FDI Outflows: The Economic Survey 2024 noted a nearly 35% shortfall in FDI from FY23 to FY24.
• Global Headwinds: Global slowdown, ongoing conflicts, and tariff barriers limit external demand, reducing investment incentives in export-oriented industries. E.g. US reciprocal tariff.

Way Forward: The Road to Investment Revival

• Revive Demand: By addressing core issues of inflation, providing DBT to the rural masses.
• Structural issues: Along with high Capex, there is a need to mitigate infrastructure project delays, which can, in turn, feed inflation.
• Regulatory framework: Simplifying regulations on GST filing, tax rationalisation, etc.
• Localise Procurement: Encourage domestic procurement in public infrastructure to boost local demand for corporate goods and services.
• Sector-Specific Incentives: Further extension and strengthening of schemes like PLI.
• Interest rates: Encouraging attractive interest rates and schemes for more capitalisation of the bond market. This can reduce the burden on the public exchequer.
• Logistics: Focusing on reducing logistics costs below the global average by diversifying connectivity for ease of doing business.

{GS3 – Envi – CC} Climate Finance in India

• Context (LM): India requires $1.5 trillion by 2030 to achieve its climate and energy targets, as stated in Deloitte’s ‘The Climate Response’ report.

• The report estimates $250 bn required for non-fossil fuel capacity and $300 bn for energy storage expansion, highlights investment gaps in renewables, biofuels, green hydrogen, grid, & storage systems.

What is Climate Finance?

• The UNFCCC defines climate finance as multi-source public and private funding that supports mitigation & adaptation to climate change.
• Article 9 of the Paris Agreement obligates developed countries to mobilize $100 billion each year for developing nations until 2025.
  • The obligation is based on the principle of common but differentiated responsibilities and respective capabilities (CBDR-RC).

Methods of Climate Financing

• Green Bonds: Debt securities issued to raise capital for environment-friendly projects.
• Climate Funds: Public or multilateral funds financing mitigation & adaptation in developing countries.
• Blended Finance: Risk-sharing models combining public and private finance to fund climate projects.
• Carbon Credits: Market instruments to offset emissions by purchasing certified emission reductions.
• Debt Swaps: Restructuring of external debt into domestic investments in climate-related initiatives.
• Concessional Loans: Below-market loans provided with favourable terms for climate action.
• Grants: Non-repayable financial aid supporting vulnerable regions’ mitigation and adaptation goals.
• Guarantees: Risk-reduction instruments ensuring lender recovery in case of project failure.

Current Landscape of Global Climate Finance

• Scale: Global climate finance flows crossed $2 trillion in 2024, reflecting rising investment momentum.
• Mitigation Dominance: ~90% of global flows support mitigation, sidelining urgent adaptation needs.
• Adaptation Deficit: Only ~$65 billion supported adaptation in 2023 (~3.4%), far below required levels
• Private Share: ~49% came from private sources, primarily for return-driven mitigation projects.
• Dual-Benefit Funding: Only ~3% supported activities with both mitigation and adaptation impacts.
• Emerging Markets: They received ~59% of total flows, mostly from international public sources.
• Debt-Based Finance: Around 69% of total flows were delivered through debt or equity instruments.

Global Climate Finance Mechanisms

Mechanism	Jurisdiction	Instrument Type	Targets	Special Notes
Global Environment Facility (GEF)	GEF / UNFCCC	Grants, Loans	Emerging, LDCs	Operates as a financial mechanism since 1994
Green Climate Fund (GCF)	UNFCCC	Grants, Loans, Equity	Developing	Established under COP16, the largest multilateral fund
Adaptation Fund (AF)	Kyoto Protocol	Grants	Vulnerable Countries	Receives a share of carbon market proceeds
Special Climate Change Fund (SCCF)	GEF / UNFCCC	Grants, Co-finance	Developing	Focuses on tech transfer, capacity-building.
Least Developed Countries Fund (LDCF)	GEF / UNFCCC	Grants	LDCs	Supports NAPAs
Loss and Damage Fund (LDF)	UNFCCC	Grants	Climate-vulnerable	Operationalised at COP28 (2023)
Climate Investment Funds (CIF)	World Bank	Concessional Loans	Emerging Economies	Houses CTF, SREP, PPCR, FIP
UN-REDD Programme	UN	Grants, Tech Support	Forested Countries	Targets emissions from deforestation (REDD+)
BioCarbon Fund	World Bank	Results-based Payments	Developing	Focus on sustainable forest landscapes
Global Climate Finance Framework	COP28 (UAE)	Concessional Blended	Global South	Seeks to channel private capital via public base funding

Challenges in Climate Finance

• Climate finance systems worldwide, including India, face persistent challenges like low adaptation share, debt-heavy flows, and institutional inefficiencies.
  • Barriers to access, equity, and fund alignment continue to hinder effective mobilisation in climate-vulnerable regions.

Challenges in Global Climate Finance

• Definition Gap: Absence of a universal definition weakens transparency & cross-country comparability.
• Inflated Reporting: Donor countries overstate contributions using flawed accounting.
• Adaptation Bias: Around 5% of total climate finance supports adaptation in vulnerable countries.
• Debt Dominance: ~69% of finance is debt-based, deterring adaptation and exacerbating fiscal burdens.
• Weak Accountability: No binding enforcement exists to penalise failures in climate finance obligations.

Climate Finance Challenges for India

• Private Gap: Adaptation finance suffers due to weak returns and low investor interest.
• Project Risk: Long gestation periods deter banks from financing green infrastructure projects.
• Debt Barrier: Rising debt levels reduce India’s access to concessional global climate finance.
• Policy Misfit: India’s frameworks often diverge from multilateral fund access requirements.
• Urban Skew: Climate finance disproportionately favours urban over rural, vulnerable regions.

India’s Climate Finance Initiatives

1. NCEF: The National Clean Energy Fund uses coal cess revenue for clean tech R&D and deployment.
2. NAFCC: The National Adaptation Fund funds climate resilience projects in vulnerable states.
3. Sovereign Green Bonds: Introduced in Budget 2022-23 to finance green public infrastructure.
4. RBI SFG: The RBI’s Sustainable Finance Group frames green finance and disclosure norms.
5. Priority Lending: RBI includes renewables in the priority sector to boost credit flow to green sectors.
6. NABARD Strategy: NABARD’s 2030 strategy broadens rural green finance and resource mobilisation.
7. GCF Access: India accesses the Green Climate Fund for adaptation and clean energy investments.

Way Forward

• Concessional Fund: India should replicate UAE’s $30 billion concessional fund to attract private capital.
• Debt Swap: Use debt-for-climate swaps, like Belize, to redirect repayments into climate projects.
• Unified Fund: A national climate fund, like Brazil’s Amazon Fund, can centralise climate disbursal.
• Transition Partnership: Adopt a JETP-like model to attract blended finance for coal transition.
• Finance Timelines: Predictable multi-year pledges, as in Germany, improve investment certainty.
• Budget Tagging: Chile’s fiscal tagging model can help transparently track green public expenditure.

JETP: The Just Energy Transition Partnership is a G7-led initiative to mobilise climate finance for the coal phase-out and clean energy in emerging economies.

{GS3 – Envi – Air Pollution} Decarbonisation of Global Shipping

• Context (TH): Global shipping, responsible for nearly 3% of global GHG emissions, is moving towards decarbonization to align with climate goals.

• The International Maritime Organisation (IMO) targets a 20% emission cut by 2030, 70% by 2040, and net-zero by 2050.

Decarbonization refers to efforts aimed at reducing or eliminating these emissions to combat climate change.

Strategies for Decarbonising Global Shipping

Alternative Fuels

• The shipping industry is increasingly shifting towards low- or zero-carbon fuels, such as green ammonia, methanol, hydrogen, & biofuels, to reduce greenhouse gas emissions.
• There is also a growing adoption of electric or hybrid propulsion systems, particularly for coastal and short-distance shipping, to replace traditional fossil fuel engines.

Energy-Efficient Technologies

• New technologies are enhancing hull designs, introducing wind-assisted propulsion, and utilising advanced hull coatings to minimise drag and improve fuel efficiency.
• Ships are beginning to integrate solar power systems, battery energy storage, and digital monitoring tools to optimise energy use and reduce emissions.

Operational Changes

• The practice of slow steaming, which involves reducing ship speeds, helps significantly lower fuel consumption and emissions.
• Route optimisation using artificial intelligence (AI) and satellite-based navigation tools is being implemented to identify the most efficient and environmentally friendly paths for shipping.

Decarbonisation of Shipping in India Goal: India aims to achieve net-zero emissions in the maritime sector by 2070 and is actively pursuing decarbonization of its shipping industry through various initiatives and targets. Initiatives: Green Port Infrastructure: Initiatives like the “Harit Sagar Green Port Guidelines” focus on promoting sustainable port operations, including the use of clean energy. National Green Hydrogen Mission: Promotes the use of green hydrogen as a maritime fuel. Green Tug Transition Programme: The program aims to transition harbour tugs from conventional fuels to greener, more sustainable alternatives. Coastal Shipping Bill, 2024: It aims to promote sustainable transport & reduce logistics costs, among other objectives.

Challenges in Decarbonisation of Global Shipping

• High Cost: Green ammonia, methanol, and hydrogen are costly and not widely accessible.
• Lack of Infrastructure: Most ports are not equipped for alternative fuel bunkering or electrification.
• Technological Gaps: Green propulsion systems are still in early stages and lack commercial scalability.
• Regulatory challenges: Absence of uniform global regulations leads to fragmented implementation.
• Industry Reluctance: Shipping companies are concerned about increased costs & operational challenges.

Way Forward

• Global Regulations: Enforce stricter emission norms and promote uniform international standards.
• Infrastructure: Invest in ports equipped for alternative fuel bunkering and electrified docking.
• Clean Technology: Offer subsidies, tax breaks, and carbon credits to make green options viable.
• Public-Private Partnerships (PPPs): Leverage private sector innovation and investment through PPPs.
• Green Shipping Corridors: Establish zero-emission trade routes through multilateral cooperation.

{Prelims – Awards} Swachh Survekshan 2024-25 Awards

• Context (TH I PIB): The President of India conferred the annual Swachh Survekshan 2024-25 Awards.

Swachh Survekshan Awards

• Swachh Survekshan Awards are part of India’s largest annual cleanliness survey conducted under the Swachh Bharat Mission (Urban) by the Ministry of Housing and Urban Affairs (MoHUA).
• The awards were started in 2016 with 73 cities. This year, 4,589 cities were surveyed.
• These awards recognise and rank cities and towns based on their cleanliness, sanitation, and solid waste management performance.
• The goal of this survey is to encourage citizen participation and raise awareness among all sections of society about the importance of collaborating to create clean cities and towns to live in.

Winners

Super Swachh League

• More than 10 lakhs Group: Indore topped for the 8^th time, followed by Surat and Navi Mumbai.
• 3 Lakhs-10 Lakhs Group: Noida ranked 1^st, followed by Chandigarh and Mysuru.

Credit: PIB

Swachh Shahar

• To promote new cities in the cleanliness rankings, this year’s awards introduced the “Swachh Shahar” (Clean City) category.
• Population of More Than 10 Lakh Group: Ahmedabad, Bhopal, and Lucknow secured the top three positions.
• 3-10 lakh Population Group: Mira-Bhayandar (Maharashtra) topped the list, followed by Bilaspur (Madhya Pradesh) and Jamshedpur (Jharkhand).

Other

• Promising Swachh Shehar: A Total of 34 top-performing cities across States and UTs were recognised as Promising Swachh Shehars.
• Best Ganga Town: Prayagraj (Uttar Pradesh).
• Best Cantonment Board: Secunderabad Cantonment.
• Best SaifaiMitra Surakshit Shehar: Visakhapatnam, Jabalpur, and Gorakhpur.

• The Uttar Pradesh government, Prayagraj Mela Authority, and Prayagraj Municipal Corporation were recognised for their exceptional urban waste management efforts during the Maha Kumbh.

Credit: PIB

MoHUA Launched Swachh City Partnership Initiative and Accelerated Dumpsite Remediation Program Swachh City Partnership Initiative: All 78 top-performing cities across all population categories will adopt & mentor one poor-performing city each from the respective States. Accelerated Dumpsite Remediation Program: A 1-year special program starting from August 15, 2025, will not only help fast-track legacy waste remediation and unlock massive urban space but also push the scientific waste processing capacity.

{Prelims – In News} ADEETIE Scheme

• Context (PIB): The Assistance in Deploying Energy Efficient Technologies in Industries & Establishments (ADEETIE) Scheme was officially launched by the Union Ministry of Power.

Key Features

• Flagship Initiative: The ADEETIE Scheme is a flagship initiative of the Bureau of Energy Efficiency (BEE), under the Ministry of Power.
• Aim: To catalyse the adoption of energy-efficient technologies among Micro, Small, and Medium Enterprises (MSMEs), enhancing their competitiveness and contributing to India’s climate goals.
• Budgetary Outlay: ₹1000 crore.
• Scheme Duration: 3 years (FY 2025-26 to FY 2027-28).
• Financial And Technical Support to MSMEs:
  • Interest Subvention Support: MSMEs can avail of a 5% interest subvention for Micro & Small Enterprises and a 3% interest subvention for Medium Enterprises on loans for adopting energy-efficient technologies.
  • End-to-End Technical Support: ADEETIE provides full handholding support, including investment-grade energy audits, technology identification, and monitoring & verification of implementation.
• Implementation: The BEE will implement it in a phased manner, beginning with 60 industrial clusters in the first phase.
• Eligibility:
  • Udyam Registered MSMEs in 14 energy-intensive 14 sectors – Brass, Bricks, Ceramics, Chemicals, Fishery, Food Processing, Forging, Foundry, Glass, Leather, Paper, Pharma, Steel Re-rolling, & Textiles.
  • Entities must demonstrate 10% energy savings of the implemented technologies.

Significance

• Reduces MSME energy use by 30–50%, cutting operational costs and emissions
• Enhances competitiveness through the adoption of cleaner, efficient technologies.
• Supports India’s net-zero targets and green industrial transition.
• Promotes technological innovation and modernisation in key sectors.