Current Affairs – September 09, 2025

{GS1 – IS – Population} India’s First Digital Census 2027 *

Context (IE): India’s first fully digital Census in 2027 will replace paper-based methods with smartphones and apps for faster, real-time data.

Key Highlights

Digital Enumeration: Enumerators to use Android/iOS apps in English & regional languages for direct, real-time uploading of data.
Self-Enumeration: Citizens can submit their household details via a dedicated online portal/app.
Geo-Tagging & GIS Mapping: All residential and non-residential buildings will be digitally mapped.
Hybrid Backup System: Paper forms may be used in limited cases, but all entries will be digitally integrated to avoid duplication.

Context (IE): The 2018 supernumerary quota for women at IITs helped halt declining female enrolment but has not significantly improved inclusivity or gender balance.

About the Quota

The 2018 policy allocated extra seats for women, supplementing intake without reducing men’s share.
Female enrolment in IITs rose to 19–21%, with seats rising from 16,053 (2020) to 18,168 (2025).
The proportion of female students stayed around 20%, maintaining gender imbalance.

Challenges Beyond Access

Infrastructure Gap: Lack of hostels, washrooms, and safe recreational spaces decreases female comfort.
Psychological Barriers: Stress, imposter syndrome and social isolation persist in male-majority IITs.
Cultural Barriers: Few girls opt for PCM in school and pursue JEE, restricting access.

Institutional Initiatives by IITs

Improved Access: Expanded hostels, sanitation, and recreation, while ensuring safety.
Mental Support: AI mental health tools, peer support, and stress management workshops introduced.
Dedicated Care: IIT Kharagpur’s Dean of Well-Being strengthened institutional student welfare.

Way Forward

Pedagogy Reform: Reform curricula and pedagogy to challenge gender stereotypes in STEM.
Role Models: Promote women IIT alumni and scientists as mentors for younger students.
Mentoring Schemes: Scale Vigyan Jyoti and CBSE’s UDAAN with targeted support for schoolgirls.
STEM Exposure: Establish labs, workshops and hands-on opportunities for girls in Classes IX–XII.

Read More > Gender Gap in STEM

{GS2 – IR – Israel} India – Israel Bilateral Investment Agreement

Context (IE): India and Israel signed a Bilateral Investment Agreement (BIA) in New Delhi to boost reciprocal investments and strengthen strategic economic ties.

About the Agreement

The BIA replaces the 1996 agreement, terminated in 2017 under India’s investment policy.
Israel is the first OECD member to sign an agreement under India’s revised investment treaty framework.
Significance: The Agreement provides better investor protection, expands trade, and is expected to increase bilateral investments, which are currently at USD 800 million.

India–Israel Relations

Diplomatic Recognition: India recognised Israel in 1950, establishing full diplomatic ties in 1992.
First Visit: PM Modi’s visit in 2017, the first by an Indian PM, upgraded ties to a strategic partnership.
Defence: India is Israel’s largest arms buyer; 11% of India’s 2013–17 imports came from Israel (SIPRI).
Strategic: Israel supports India on Pakistan issue and collaborates on counterterrorism and intelligence.
Agriculture: Israel supports India with wastewater reuse, desalination, Ganga cleaning & drip irrigation.
Trade Relations: Expanded beyond defence to diamonds, IT, agriculture, and pharmaceuticals.

{GS2 – IR – Issues} Gen Z-Led Protests in Nepal

Context (IE | TH): Nepal PM K.P. Sharma Oli resigned amid violent ongoing anti-corruption protests by ’Gen Z’ across the country, triggered by a government ban on social media platforms.
Official Cause of Ban: Nepal banned 26 social media platforms, citing non-registration with the Ministry of Communication and Information Technology amid rising misinformation and cyber-fraud.

‘Gen Z’/ Generation Z includes those born from 1995 to 2010, with over 90% internet penetration.

Reasons Behind Youth Unrest

Censorship: Youth perceived platform bans as Free-Speech censorship that suppressed political dissent.
Corruption: Protesters denounced institutionalised corruption, nepotism, and misuse of public resources.
Political Stagnation: Resentment against dynastic leaders monopolising power through a coalition led to demands for accountability against authoritarian rule.
Job Crisis: Limited opportunities and about 84% informal employment deepen youth frustration.

Also, Refer to > India-Nepal Relations

{GS2 – IR – Bilateral Relation} Khalistani Financing in Canada

Context (TH): A Canadian report revealed that Khalistani groups receive financial support from within Canada, validating India’s concerns.

Strategic and Security Concerns for India

Confirms India’s stance on unchecked anti-India propaganda & fundraising by pro-Khalistan elements.
Adds strain to India-Canada ties despite recent attempts at normalisation.
Heightens risks of radicalisation, diaspora manipulation, and revival of militancy in Punjab.
Reflects Canada’s tolerance of extremist rallies and narratives despite repeated Indian protests.

{GS2 – IR – Issues} India Reaffirms WTO-Centred Trade Order

Context (LM): At the SCO Trade Ministers’ Meeting, India reiterated support for a rules-based multilateral trading system anchored in the World Trade Organization (WTO).

Key Highlights

WTO Reforms: India called for a permanent solution on public stockholding and restoration of the two-tier dispute settlement.
Supply Chains: Called for diversification, improved logistics, market predictability, and restraint on export controls.
Climate & Equity: Pushed Mission LiFE, calling for equity, finance, and affordable tech transfer, opposing discriminatory climate-linked trade measures.
Creative Economy: Showcased India’s role in Animation, Visual Effects, Gaming, Comics sector (AVGC) and film production via WAVES 2025, Waves Bazaar, and Cine Hub.

Read More > SCO Summit, 2025 | India at the SCO Summit 2025

{GS3 – IE – Taxes} New GST Rates for the Agriculture Sector **

Context (PIB): The GST Council rationalised agricultural taxation to 0-5%, lowering costs, curbing disputes, and complementing unfinished agricultural marketing reforms.

GST Rationalisation in Agriculture

Uniform Coverage: Nearly all agricultural and processed food items fall under 0% or 5%.
Farm Equipment: Tractors, harvesters, threshers, and drip irrigation taxed uniformly at 5%.
Bio-Inputs: Biopesticides and micronutrients shifted to 5% duty, promoting bio-fertiliser adoption.
Dairy Sector: Milk, paneer exempted, while all processed dairy harmonised at 5%.
Export Refunds: Provisional 90% GST refunds are mandated within seven days for exporters.

Expected Gain from GST Reform

Cost Relief: Reduced tax on farm inputs and machinery lowers cultivation expenditure.
Adulteration Check: Harmonised dairy rates remove the incentive for blending ghee with oils, etc.
Duty Elimination: Elimination of multiple duties on similarly derived products reduces tax complexity.

Structural and Policy-level Challenges

Fiscal Concerns: Extensive agricultural rate cuts threaten long-term GST revenue sustainability.
Policy Contradictions: Export bans and stock restrictions undercut GST-driven agribusiness reforms.
Complexity: Diverse product classifications and state-level variations complicate GST compliance.

Way Forward

Market Reforms: Dismantle restrictions on produce movement, storage, and agricultural marketing.
Procedural Clarity: Harmonise classifications & ensure timely GST refunds through risk-based systems.
Capacity Building: Develop training programs to help farmers & stakeholders navigate GST compliance.

Read More > Next Generation GST Reforms

{GS3 – IE – Securities} Declining Foreign Capital Inflows

Context (IE): India’s robust GDP growth contrasts with historically weak foreign capital inflows, raising concerns over financing stability and investment sustainability.

Foreign Capital Investment in FY 2024-25

FDI Collapse: Gross inflows reached $81 billion, but net FDI plummeted to just $0.4 billion.
Portfolio Outflows: FPIs sold equities worth $15 billion, intensifying financial market volatility.
Bond Inflows: Government bonds attracted $19 billion from FPIs, cushioning equity sell-offs.
Debt Cushion: ECB inflows of $15.8 billion stabilised India’s balance-of-payments temporarily.
Outward Surge: Indian outward FDI rose 75% to $29.2 billion, draining domestic capital availability.

Foreign Capital Paradox

Paradox: Unlike typical correlation, despite a higher GDP growth, net capital inflows remain weak.
Reason: Overvalued markets & weak corporate earnings discouraged sustained foreign investments.
Implication: Persistent capital weakness may strain BoP stability and future growth financing.

FDI: Foreign Direct Investment is when overseas firms invest directly in domestic industries.
FPI: Foreign Portfolio Investment is overseas investors purchasing equities & bonds in the Indian market.
ECB: External Commercial Borrowings are overseas loans for Indian companies.

Drivers of Foreign Capital Decline

IPO Exits: Private equity and venture investors monetised gains through IPOs and acquisitions.
Weak Earnings: Concerns over subdued corporate performance triggered sustained portfolio sell-offs.
Tariff Uncertainty: U.S. tariff hikes increased trade risks, discouraging foreign commitments.
Regulatory Hurdles: Complex rules and infrastructure gaps limited India’s investment attractiveness.
High Valuations: Elevated equity prices encouraged profit-taking instead of new inflows.

Consequences of Inflow Weakness

BoP Pressure: Weak inflows reduce India’s capacity to finance current account deficits.
Reserve Decline: Limited capital inflows threaten erosion of vital foreign exchange reserves.
Currency Weakness: Persistent outflows push the rupee toward record lows against the dollar.
Growth Slowdown: Inadequate foreign funding delays expansion, restricting economic momentum.
Debt Burden: Greater reliance on ECB inflows raises repayment risks and external liabilities.

Policy Measures Undertaken

GST Relief: GST rate cuts aimed to stimulate consumption and strengthen corporate profitability.
Reform Taskforce: A task force for next-generation business & regulatory reforms was launched.
BIT Update: Bilateral Investment Treaty framework revised to strengthen foreign investor protections.
PLI Expansion: Production Linked Incentive scheme broadened to attract foreign greenfield investments.
SEBI Oversight: SEBI tightened disclosure norms, improving transparency and FPI market confidence.

Way Forward

Regulatory Ease: Streamline approval systems to minimise procedural hurdles for foreign investments.
Dispute Resolution: Strengthen arbitration systems to ensure faster investor dispute settlements.
Infrastructure Corridors: Develop corridors attracting large-scale, capital-intensive foreign investments.
Incentive Alignment: Calibrate incentives with domestic value addition, balancing FDI and OFDI.
Financial Deepening: Expand corporate bond markets to diversify long-term foreign capital inflows.

OFDI: Overseas Foreign Direct Investment is when domestic firms invest directly in foreign assets.

Read More > Difference between FDI, FPI and FII

{GS3 – Agri – Crops} NITI Aayog’s Roadmap for Atmanirbharta in Pulses **

Context (TH): NITI Aayog released a report “Strategies and Pathways for Accelerating Growth in Pulses towards the Goal of Atmanirbharta” (Sept 2025), outlining a roadmap for self-reliance in pulses.

India is the world’s largest producer, consumer, and importer of pulses.

Key Highlights

Production Surge: Pulses output rose from 16.35 MT (2015-16) to 26.06 MT (2022-23), a 59.4% rise.
Productivity Growth: Yield improved by 38% in the same period, reflecting better seed and farming.
Reduced Import: Share of imports declined from 29% to 10.4%, moving towards self-reliance.
Mission Atmanirbharta: A 6-year programme prioritising pigeonpea, black gram, and lentil.
Projection: Domestic supply expected to reach 30.59 MT by 2030 and 45.79 MT by 2047.
Climate vulnerability: Around 80% of production is rain-fed, exposing output to monsoon variability.
Regional Trends: Madhya Pradesh, Maharashtra, and Rajasthan contribute ~55% of production.

Recommendations

Area & Diversification: Promote crop-wise clustering while retaining traditional pulse-growing belt.
Technology Adoption: Deploy region-specific technologies suited to diverse agro conditions.
Seed Security: Scale up distribution of high-quality seeds & provide seed treatment kits to farmers.
Targeted Districts: Focus interventions in 111 high-potential districts contributing ~75% of output.
Seed Villages: “One Block-One Seed Village” model via Farmer-Producer Organisation-led clusters.

{GS3 – Envi – Degradation} Great Nicobar Project Dilemma **

Context (TH): The Great Nicobar Project, with potential to become a strategic connectivity hub, is criticised for endangering indigenous rights, biodiversity, and legal safeguards.

About Great Nicobar Project

About: A proposed ₹72,000-crore infrastructure project on Great Nicobar Island near the Malacca Strait.
Core Components: ICTT at Galathea Bay, greenfield airport, township, & 450 MVA hybrid gas-solar plant.
- Expansion: Additions include a cruise terminal, a shipbreaking yard, & a coastal transport corridor.
Extent: Spans 16,610 hectares, including 84 sq. km denotified Shompen & Nicobarese tribal reserves.
Implementation: Conceived by NITI Aayog, executed by ANIIDCO through a phased 30-year plan.

ICCT: International Container Transhipment Terminal is a deep-water port for container transhipment.
ANIIDCO: Andaman and Nicobar Islands Integrated Development Corporation Limited.

Strategic and Economic Importance

Geo-strategy: Strengthens surveillance & deterrence across critical Indo-Pacific shipping chokepoints.
Maritime Economy: ICTT could capture regional transhipment, reducing India’s logistics dependence.
Connectivity Push: Greenfield dual-use airport enhances civilian access and defence deployment.
Job Creation: Infrastructure development is projected to generate substantial direct and ancillary jobs.
Policy Alignment: Supports Maritime India Vision 2030 and advances Act East regional connectivity.

Key Challenges and Issues

Displacement: Denotified reserves threaten the survival & continuity of the Shompen-Nicobarese PVTGs.
Legal Breaches: Bypassing FRA 2006 for project clearances denies tribals consent, eroding safeguards.
Ecological Damage: Clearing ~9 lakh trees threatens turtle nesting, coral reefs, & rainforest biodiversity.
Regulatory Failure: Procedural opacity and CRZ dilution erode environmental governance transparency.
Geological Risk: Location in a seismically active, tsunami-prone zone endangers long-term viability.

Way Forward

Tribal Safeguards: Mandate FRA consent via Gram Sabhas, ensuring legitimate project clearances.
Transparent Review: Declassify High-Powered Committee report with environmental & tribal experts.
EIA Reassessment: Conduct multi-seasonal biodiversity studies for accurate impact assessment.
Exclusion: Remove CRZ-IA and biodiversity hotspots from project zones, ensuring ecological integrity.
Seismic Standards: Enforce island-specific earthquake codes with cumulative disaster risk assessments.

Read More > Great Nicobar Project

{GS3 – S&T – Tech} Red Sea Cable Disruption

Context (TH): Disruptions to SEA-ME-WE 4 and IMEWE undersea cables in the Red Sea increased India-Europe latency, straining cross-regional connectivity.

Vulnerability of the Red Sea Corridor

Chokepoint: Most Asia-Europe undersea cables converge at the narrow Bab-el-Mandeb passage.
Conflict: Persistent Houthi hostilities in the Red Sea expose submarine cables to damage.
Anchor Hazards: Intense shipping and anchoring in the Red Sea frequently damage undersea cables.

About Undersea Cables

Ocean Floor: Undersea cables are fibre-optic lines laid on seabeds, spanning 1.5 million km globally.
Signal Transmission: They use total internal reflection, transmitting terabits of data as light pulses.
Signal Reinforcement: Optical repeaters, placed every 60-80 km, amplify signals for long distances.
Traffic Share: Nearly 99% of international internet and telecom traffic relies on submarine cables.

Advantages of Undersea Cables

Ultra Bandwidth: Undersea cables provide ultra-high bandwidth with lower latency than satellites.
Cost Efficiency: These systems deliver cheaper, scalable throughput than satellite networks.
Reliability: Rerouting cables through alternate paths ensures connectivity during localised disruptions.

Challenges in Undersea Cables

Physical Damage: Anchors, trawling, and earthquakes frequently damage submarine cables.
Repair Delays: Specialised ships and clearances make restoration slow and expensive.
Security Risks: Sabotage, espionage, and regional conflicts threaten the undersea cable infrastructure.

India’s Undersea Cable Landscape

Regulatory Role: The Dept of Telecommunications is the nodal authority for undersea cable licensing.
Installed Base: India hosts 17 international cables across 14 landing stations in five coastal cities.
- Concentration: Cable landings are heavily concentrated in Mumbai and Chennai.
Capacity Surge: Since 2016, activated capacity rose ninefold, reaching 132 Tbps by 2023.
Next-Gen Networks: 2Africa Pearls, IAX, and IEX are major upcoming undersea cable projects.

Read More > What Are Undersea Cables?

{GS4 – Probity in Governance} Risks of Generative AI Chatbots **

Context (TH): Recent U.S. lawsuits link generative AI chatbots to suicides, raising concerns about child safety and corporate accountability.

Generative AI chatbots like ChatGPT simulate dialogue using large language models.

Associated Risks of AI Chatbots

Justice & Vulnerability: CCDH reports 53% of harmful prompts generate dangerous outputs, disproportionately risking vulnerable users, violating fairness.
Manipulation Risk: AI chatbots blur free will, raising ethical concerns about consent and exploitation.
AI Psychosis: Overreliance on AI leads to isolation, delusions, detachment, and distorted coping.
Consciousness Illusion: Presenting AI as “conscious” misleads users, increasing unhealthy attachment.
Creativity Suppression: Overusing chatbots stifles originality and hinders independent problem-solving.

Challenges in Existing AI Safeguards

Guardrail Fragility: Extended or manipulative interactions can bypass suicide-prevention safeguards.
Child Susceptibility: Minors remain highly vulnerable to unsafe dependencies fostered by AI chatbots.
Ineffective Controls: Existing parental tools lack robustness in preventing harmful AI interactions.

Way Forward

Ethical AI Design: Cognitive safety and autonomy must be preserved, aligning with UNESCO guidelines and NITI’s Responsible AI vision.
Regulatory Oversight: Governments need statutory watchdogs, like EU’s AI Act, for strict monitoring.
AI Literacy: Curricula should integrate AI literacy and critical reasoning, as seen in CBSE’s AI initiative.
Adaptive Safeguards: Dynamic safeguards like Google’s Gemini and Anthropic’s Claude are essential.
Parental Oversight: Linked teen accounts and parental controls to ensure child safety.

{Prelims} One Liners

In News – Self-Respect Movement (TH): 2025 marked 100 years of the Self-Respect Movement initiated by EV Ramasamy ‘Periyar’ in Tamil Nadu to dismantle caste hierarchy and advance social justice.
In News – Universal Postal Congress (NOA): Dubai is hosting 28^th edition of the quadrennial Universal Postal Congress, organised by the Universal Postal Union, for framing global postal policy & strategies.
Security – Operation Guddar (LM): Indian Army, J&K Police, and CRPF conducted a joint anti-terror operation in Guddar forest at Kulgam in Jammu & Kashmir, resulting in the death of two terrorists.
Sci & Tech – Lithium-Ion Battery Plant (ET): A lithium-ion battery plant by Japan’s TDK Corporation was inaugurated in Haryana’s Sohna as part of efforts to deepen the electronics manufacturing in India.