Current Affairs – July 30, 2025

{GS2 – Governance – Issues} Global AI Governance

• Context (TH): The Secretary-General of the UN International Telecommunication Union (ITU) called for a global AI regulation amid concerns over job losses, deepfakes, and societal disruptions.

Need for Global AI Governance

• Fragmented Global Rules: National AI laws are inconsistent, failing to address cross-border risks.
• AI Power Concentration: Few nations and firms control AI, deepening global inequality.
• Cross-border Security Risks: AI misuse in warfare and disinformation threatens global stability.
• Rights and Freedoms at Risk: Surveillance and profiling erode privacy and democracy.
• No Binding Global Law: Absence of international legal norms leaves AI unregulated.

Read More > Regulating AI

Challenges in Global AI Governance

• Geopolitical Rivalries: Power struggles, especially between the US and China, hinder global AI regulatory consensus.
• Sovereignty Concerns: Countries resist binding global norms, fearing constraints on national innovation and control.
• Global Capacity Divide: Many developing nations lack the technical and institutional capacity to participate in AI governance.
• Big Tech Dominance: Concentrated control by private firms limits state authority in shaping global AI rules.
• Institutional Vacuum: No international body currently exists with the mandate to enforce AI governance.

Way Forward

• Regular UN Dialogues: Convene biannual global forums to align national rules & share best practices.
• Flexible Governance: Promote adaptable structures balancing innovation, ethics, & cooperation.
• Capacity Building: Build training centres in developing countries to enhance regulatory capabilities.
• Common Standards Platform: Establish a global registry of shared definitions and AI evaluation norms.
• Independent Expert Panel: Form a global AI panel to guide risk assessment and ethical frameworks.
• Global AI Fund: Create an UN-backed fund to improve equitable access to AI tools.
• India’s AI Law: Finalise MeitY’s draft law to regulate AI risks and foster innovation.

{GS3 – IE – Banking} New Digital Credit Assessment Model for MSMEs

• Context (PIB): In a major fintech reform, Public Sector Banks (PSBs) have introduced a new Digital Credit Assessment Model for MSMEs, making loan approvals faster and more objective.

Key Features

• Objective & Automated Assessment:
  • Uses verifiable digital data to replace manual underwriting, enabling credit decisions within a day.
  • Decision-making based on system-generated credit logic and scorecards.
  • Enables banks to independently assess creditworthiness using Business Rule Engines (BREs) aligned with their internal risk policies.
• Digital Footprint-Based Evaluation: Includes real-time authentication and data fetch from:
  • PAN verification via National Securities Depository Limited (NSDL),
  • GST data via Application Programming Interfaces (APIs),
  • Bank statement analysis through Account Aggregator framework,
  • Income Tax Returns (ITR) verification, bureau scores from Credit Information Companies (CICs),
  • Mobile/email OTP-based validation, and fraud checks via APIs.
• Paperless Loan Journey: The entire process, from application to documentation, sanction, and appraisal, is completely digital. No branch visits are necessary, allowing access even from remote areas.

{GS3 – IE – Development} Nigeria’s GDP Rebasing

• Context (IE): Recently, Nigeria’s National Bureau of Statistics (NBS) rebased its GDP, shifting the base year from 2010 to 2019, which led to an improvement in its global ranking from 58^th to 55^th.

GDP Rebasing

• Definition: GDP rebasing replaces the old base year with a recent one to better reflect current economic realities.
• Significance: Enables better policymaking & despite being statistical, it influences investor confidence, credit ratings
• Nigeria’s Case: The base year was updated from 2010 to 2019, nominal GDP jumped 30% (2024 estimate).

India’s Ongoing Base-Year Revision

• Base Year: The Ministry of Statistics and Programme Implementation (MoSPI) is set to update the base year for GDP from 2011-12 to 2022-23, revised numbers expected in Feb 2026.
• Implications: A transparent, inclusive, and methodologically sound approach to rebasing could improve India’s global GDP ranking.
• Current Status: India’s GDP calculation is based on constant and current prices using 2011–12 as the base year.

Impact of GDP Rebasing on the Indian Economy

• Transparent methodology and regular updates improve the credibility of macroeconomic data.
• A higher nominal GDP lowers fiscal deficit-to-GDP and debt-to-GDP ratios, offering more fiscal space.
• Updated data enables better policymaking and sectoral planning.
• Helps assess emerging and declining sectors more accurately.

{GS3 – IE – Employment} Living Wage and Women’s Workforce Participation

• Context (IE): The Ministry of Labour & Employment is discussing a living wage policy aligned with real household costs, aiming to boost women’s formal workforce participation.

Impact of Living Wage on Women

• A living wage converts invisible labour into a visible economic contribution.
• Cost Offset: A living wage lowers economic barriers to women’s workforce participation.
• Job Retention: Women earning a living wage are more likely to stay in formal jobs.
• Poverty Relief: Living wages reduce household poverty and dependence on welfare support.
• Gender Equity: Living wage compensates for care burden and narrows gender pay gaps.Growth Impact: Higher female labour force participation boosts GDP and national productivity.
• Agency Gains: Living wages enhance women’s role in financial and household decisions.

Challenges in Implementation

• Regional Variation: Diverse regional costs make it difficult to set a uniform national wage.
• Data Gaps: Lack of disaggregated cost data weakens accurate living wage calculations.
• Firm Pushback: Small firms may oppose higher wages due to financial and compliance burdens.
• Weak Enforcement: Enforcement is weak as the informal sector largely escapes wage regulation.
• Regulatory Clutter: Conflicting labour codes create legal uncertainty for implementing wage reforms.
• Inflation Risk: Rising wages may trigger inflation if productivity growth does not keep pace.
• Complement Gaps: Absence of childcare, transport, & housing weakens the impact of higher wages.

Way Forward

• Indexing: Create regional wage baselines using household data & Anker cost methodology.
  • Anker Method: Calculates living wage using local costs for food, housing, and essentials.
• Consensus: Institutionalise employer-worker-government dialogue to standardise wage frameworks.
• Digital Oversight: Use real-time digital tools to monitor and enforce wage compliance effectively.
• Infrastructure Support: Expand access to childcare, safe transport, & women-centric industrial housing.
• MSME Relief: Offer tax rebates or subsidies to help small firms adopt living wage norms.
• Legal Streamlining: Repeal outdated work-hour bans & gender restrictions in labour legislation.

{GS3 – Infra – Railways} India’s First Hydrogen-Powered Train Coach

• Context (IE): Indian Railways tested its first hydrogen-powered coach at the Integral Coach Factory (ICF), Chennai, marking a key milestone under the National Green Hydrogen Mission.

Project Overview

• India’s first hydrogen rail project showcases indigenous retrofitting for green public transport.
• Lead Agencies: Northern Railway and RDSO jointly developed and validated the pilot coach.
• Pilot Route: The coach will operate between Jind and Sonepat with two daily round trips.
• Retrofit Design: Two diesel-powered cars were converted into hydrogen fuel-cell power units.
• Hydrogen Storage: A dedicated fuelling facility with 3,000 kg capacity was set up at Jind in Haryana.
• Safety Oversight: TÜV-SÜD (Germany) was appointed as the third-party safety auditor.
• Regulatory Compliance: Infrastructure adheres to PESO norms under DPIIT supervision.
• Deployment Framework: The project is part of the “Hydrogen for Heritage” rollout programme.

About Hydrogen Fuel Technology

• Fuel-cell systems enable electricity generation from hydrogen without direct combustion.
• Clean Reaction: Hydrogen reacts with oxygen to emit only water as a byproduct.
• Non-Combustion Process: Energy is produced electrochemically, without burning hydrogen fuel.
• Fuel Cell Type: Proton-exchange membrane (PEM) fuel cells are used to generate traction power.
• High-Pressure Storage: Hydrogen is stored in onboard tanks at 350 bar pressure.
• Energy Carrier: It must be produced using other fuels; It is an energy carrier, not an energy source.

Benefits of Hydrogen-Powered Trains

• Hydrogen trains strengthen India’s green mobility goals and heritage tourism potential.
• Zero Emissions: Hydrogen trains release only water vapour, eliminating CO₂ and particulate emissions.
• Noise Reduction: Fuel-cell propulsion significantly lowers noise levels compared to diesel locomotives.
• Non-Electrified Routes: Enables green mobility on hilly or remote tracks without electric infrastructure.
• Energy Density: Hydrogen stores high energy per kilogram, allowing longer journeys with less fuel.
• Import Savings: Replacing diesel with hydrogen reduces crude oil imports and energy dependence.

Challenges Associated with Hydrogen-Powered Trains

• Hydrogen rail scalability faces the classic triad of cost, capacity, and coordination gaps.
• Fire Hazard: Hydrogen’s flammability demands layered safety systems and real-time leak detection.
• Energy Concern: It requires intensive electricity & water, raising lifecycle energy concerns.
• Electrolyser Deficit: India lacks sufficient PEM electrolyser capacity for national scale-up.
• Capital Burden: High upfront costs limit the scalability of hydrogen trains & depot infrastructure.
• Logistical Cost: Transporting compressed hydrogen increases recurring costs & network complexity.
• Tech Maturity: Rail-grade fuel-cell systems remain under-tested in Indian operating conditions.

{GS3 – Envi – Pollution} NCAP 2.0 & Industrial Pollution

• Context (IE): Despite being major polluters, industries receive just 0.6% of NCAP and Finance Commission funds, underscoring the need for NCAP 2.0 to focus on industrial emission control.

An Overview of National Clean Air Programme (NCAP)

• Launched by:  Ministry of Environment, Forest and Climate Change (MoEFCC) in 2019.
• Aim: To improve air quality in Million Plus Cities and non-attainment cities.
• Targets: To reduce Particulate Matter (PM2.5 & PM10) concentration by 20-30% by 2024 (baseline is 2017). The target for PM10 has been revised to reduce by up to 40%.

Read More > National Clean Air Programme

Key Drivers of Industrial Pollution

• Proximity to Industry: 37% of India’s most polluted cities are surrounded by large polluting industries.
• Outdated Kilns: India hosts over 1.4 lakh brick kilns, most of which use outdated technologies.
• Unregulated MSMEs: Rely heavily on polluting fuels like coal & oil, emitting high levels of PM & SO₂.
• Weak Regulation: Industries in peri-urban areas fall outside urban local body jurisdiction, complicating regulatory enforcement.

Impact of Industrial Emissions

• Health Impact: Industrial air pollution contributed to 1.67 million deaths in India. (Lancet Commission).
• Water Pollution: Over 70% of pollution in the Yamuna comes from industrial effluents (CPCB).
• Crop Loss: Wheat and rice yields drop by 10–30% near thermal plants due to fly ash (ICAR).
• Economic Burden: Air pollution costs India 8.5% of its GDP annually due to health & productivity loss.
• Climate Impact: Industry emits over 25% of India’s total CO₂, driving climate change (MoEFCC).

Challenges in NCAP Implementation

• Funding Gap: Only 0.6% of the NCAP & 15^th Finance Commission funds are allocated to control industrial emissions.
• Informal Emissions: Over 1.4 lakh brick kilns and other MSMEs use outdated methods.
• Enforcement Deficit: CPCB’s 2023 dust control norms show widespread non-compliance across stone crushing and grinding industries.
• Weak Regulation: No mandate exists for industries to disclose air pollutant emissions.

NCAP 2.0 as a Solution

• Industrial Targeting: NCAP 2.0 must allocate dedicated funds to control emissions.
• Technology Enforcement: Enforce retrofitting mandates such as zigzag kilns and wet scrubbers, which reduce PM emissions by over 70%.
• Mandatory Reporting: Make air pollutant disclosure a condition for consent-to-operate, ensuring transparency & regulatory oversight.
• Airshed Governance: Institutionalise airshed-level planning by coordinating SPCBs, ULBs, & ministries.
• Clean Energy: Offer financial incentives like grants & subsidies to MSMEs for transitioning to green fuel.

{GS3 – DM – Floods} India’s Response to GLOF Risks

• Context (TH): A severe Glacial Lake Outburst Flood in Nepal caused infrastructure damage. With similar vulnerabilities in the Indian Himalayas, India is intensifying mitigation & cross-border warning efforts.

India’s Multi-Pronged GLOF Mitigation Approach

• Proactive Risk Reduction: Led by the National Disaster Management Authority (NDMA), India has moved from post-disaster relief to a coordinated, preventive approach.
• National GLOF Risk Mitigation Programme: Launched with a $20 million outlay, initially covering 56 glacial lakes, now expanded to 195, categorised into four risk levels.
• Core Components of the Programme:
  • Hazard Assessment: Scientific expeditions to high-risk lakes.
  • Early Warning Systems (EWS): Installation of Automated Weather and Water Stations (AWWS).
  • Risk Mitigation: Construction of water drawdown channels and flow retention structures.
  • Advanced Technology: Use of SAR Interferometry for slope stability & Electrical Resistivity Tomography (ERT) for detecting ice cores beneath moraine dams.
• Remote Sensing: Satellite, drone-based monitoring of lake size and shoreline; bathymetry used to estimate water volume and risk potential.
• Capacity Building: Indo-Tibetan Border Police (ITBP) trained to provide manual early warnings.
  • Community training, mock drills, & awareness campaigns in vulnerable districts to support timely evacuation.

Challenges in GLOF Risk Management

• Data Deficits: Remote glacial lakes are inaccessible for much of the year due to altitude and terrain.
• Climate Change: 2023 and 2024 were the hottest years globally, accelerating glacial melt & increasing lake volume & pressure.
• Technological Gaps: Limited use of Indian scientific tools and private innovations hampers Himalayan risk management.
  • Gaps remain in automated monitoring, early warning systems, and timely satellite imaging.

Way Forward

• Incentivise Indigenous Tech: Launch a Challenge Fund under Start-up India to develop affordable, rugged sensors for real-time glacial lake monitoring.
• GLOF Audits: Include GLOF risk assessments using satellite and geophysical tools in all Detailed Project Reports (DPRs) of hydropower and road projects.
• Cross-Border Alert Systems: Build real-time GLOF data-sharing mechanisms with Nepal, Bhutan and China.
• Community-Based Response: Pilot volunteer forces in remote hamlets for lake monitoring, traditional forecasting, and emergency response, blending local knowledge with scientific systems.

{Prelims – Envi – Species} Great Indian Bustard

• Context (IE): A Supreme Court-appointed expert committee has proposed designated power corridors for transmission lines in Great Indian Bustard (GIB) habitats in Gujarat and Rajasthan to reduce bird fatalities.

Key Recommendations

• Priority Zone Expansion: Priority areas have been increased to widen habitat protection coverage.
• Immediate Burial: Select power lines in key GIB habitats are to be buried underground.
• Restrictions: Overhead lines, wind turbines, and solar plants over 2 MW are prohibited in priority zones.

  

Credit: IE

• Conservation Recommendations:
  • “Jump-start” method – Eggs from late-stage GIBs in Rajasthan are proposed for incubation by wild females in Gujarat.
  • All remaining GIBs in Gujarat to be fitted with tracking devices for movement monitoring.

Read More > Great Indian Bustard

{Prelims – Envi – Species} International Tiger Day 2025

• Context (PIB): On 29 July 2025, India marked International Tiger Day with the theme “Securing the Future of Tigers with Indigenous Peoples and Local Communities at the Heart“, emphasising their vital role in conservation.

About International Tiger Day

• Established: In 2010 at the Saint Petersburg Tiger Summit by 13 tiger-range countries.
• Tx2 Commitment: Countries aim to double wild tiger populations by 2022 through collaboration.
• Awareness Platform: Highlights key threats such as poaching, habitat loss, and conflict with humans.

India’s Tiger Conservation

• India’s tiger conservation began with the 1969 ban on wild cat skin exports.
• Project Tiger (1973): Launched with 9 reserves; expanded to 58 tiger reserves today under National Tiger Conservation Authority (NTCA).
• Population Milestone: Tiger count rose from about 1,400 (2006) to 3,682 (2022), reaching the Tx2 goal.
• Tiger Census India: Held every 4 years; 2022 survey shows India hosts 75% of global wild tigers.
• Global Conservation Role: India launched the International Big Cats Alliance (IBCA) in 2023 to protect seven big cat species globally.

Read More> Tiger Census 2022

{Prelims – In News} Akhil Bharatiya Shiksha Samagam (ABSS) 2025

• Context (PIB | TH): To mark 5 years of NEP 2020, Union Education Minister inaugurated Akhil Bharatiya Shiksha Samagam 2025 in New Delhi.

Key Highlights and Initiatives

• Education Funding: Over ₹4,000 crore allocated for enhancing school infrastructure and promoting digital learning.
• Recognition of Excellence: 613 PM SHRI (PM Schools for Rising India) schools were awarded to institutionalise replicable best practices.
• Academic Integration: Letters of Intent signed with four foreign universities to establish campuses in India.
  • Western Sydney University (Greater Noida), Victoria University (Noida), La Trobe University (Bengaluru), and University of Bristol (Mumbai).

Major Digital & Tech Launches at ABSS 2025

• TARA portal: Launched to assess reading fluency among students in Grades 3–8.
• My Career Advisor app: Launched to provide AI guidance on over 1,000 career paths.
• Local Language Proficiency Test Portal: Launched to assess LSRW skills in 22 Indian languages.
• SHVR Rating System: Swachh Evam Harit Vidyalaya Rating (SHVR) was introduced as a 5-star system to evaluate hygiene, sanitation, and environmental sustainability standards in schools.
• AI Apprenticeship Scheme: Expanded National Apprenticeship Training Scheme (NATS) to include AI-based training in key sectors like healthcare, manufacturing, education, etc.

Read More > Five Years of NEP 2020