10th July 2025 Current Affairs: India’s Strategic Shifts | UPSC Digest

Here’s your 10th July 2025 UPSC current affairs digest, covering India’s major strategic, economic, and policy developments. From securing critical minerals to addressing custodial torture, promoting AI ethics, boosting NBFC lending, and measuring inequality, these topics are crucial for Prelims and Mains. Stay updated with facts, frameworks, and global relevance—perfect for answer writing and essay prep.

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1. India-Armenia Defence Cooperation: Strategic Shift in Eurasia

✅ Why It’s in the News

India has deepened its defense ties with Armenia, signing new arms export deals, including rocket systems, anti-tank weapons, and radars, signaling a bold shift in India’s foreign and defense strategy.

📘 Key Points for Prelims & Mains

• India exported Pinaka multi-barrel rocket launchers, anti-tank missiles, and indigenous radars to Armenia.

• India is emerging as a credible defense exporter, especially to non-traditional partners.

• Armenia is locked in a conflict with Azerbaijan over Nagorno-Karabakh.

🌐 Recent Developments & Global Context

• Armenia seeks to diversify arms suppliers due to strained relations with Russia and hostility from Turkey.

• India sees Armenia as a gateway to influence Eurasia and the Caucasus.

• This is India’s biggest defense deal with a post-Soviet country.

📜 Relevant Conventions and Treaties

• UN Arms Trade Treaty (ATT): Regulates international arms transfers to prevent human rights abuse. India is not a signatory but follows its responsible principles.

• India’s Defence Export Policy 2020: Targets $5 billion in defense exports by 2025.

• Strategic Partnership Agreements: India is increasingly signing defense agreements with Eurasian and Central Asian countries outside the NATO-Russia rivalry.

🌏 Implications for India and the World

• Strengthens India’s geo-strategic positioning in Eurasia.

• Counters Pakistan-Turkey military cooperation with Azerbaijan.

• May raise regional tensions, requiring careful diplomatic balancing.

📊 Factual References

• SIPRI (Stockholm International Peace Research Institute): India ranked among the top 25 arms exporters (2024).

• MEA’s 2024 annual report confirms increasing bilateral military cooperation with Armenia.

 2. India Abstains on UN Vote for Gaza Ceasefire

✅ Why It’s in the News

India abstained from a UN General Assembly resolution demanding a ceasefire in Gaza, attracting international scrutiny over its neutrality in global conflicts.

📘 Key Points for Prelims & Mains

• Resolution called for immediate humanitarian ceasefire and unhindered aid access in Gaza.

• India cited lack of balanced language that excluded Hamas’s role.

• India supports a two-state solution.

🌐 Recent Developments & Global Context

• Gaza conflict escalated after October 2023 Hamas-Israel clash, resulting in over 35,000 civilian deaths.

• UNGA resolutions are non-binding, but carry moral weight.

• India faces pressure from both Israel (strategic partner) and Palestine (traditional ally).

📜 Relevant Conventions and Treaties

• UN Charter – Chapter VI & VII: Focus on peaceful settlement and security measures.

• Geneva Conventions (1949): Protection of civilians in conflict zones, including health workers and aid workers.

• UNGA Resolutions on Palestine: Often symbolic but signal global sentiment.

🌏 Implications for India and the World

• Reflects India’s strategic autonomy – avoiding alignment with Western or Islamic blocs.

• Retains defense cooperation with Israel while not completely alienating Arab countries.

• Domestic public opinion is increasingly divided on the Middle East issue.

📊 Factual References

• MEA statement (2024): Reiterated commitment to the two-state solution.

• UN OCHA reports: Humanitarian situation in Gaza critical, with over 80% population displaced.

 3. Priority Sector Lending: RBI’s Review for Inclusive Growth

✅ Why It’s in the News

The RBI has initiated a review of its Priority Sector Lending (PSL) guidelines to make them more inclusive and aligned with the realities of India’s rural and underserved sectors.

📘 Key Points for Prelims & Mains

• Banks must allocate 40% of Adjusted Net Bank Credit (ANBC) to PSL sectors.

• Includes agriculture, MSMEs, education, housing, renewable energy, and social infrastructure.

• Review aims to expand PSL to cover green economy and digital rural enterprises.

🌐 Recent Developments & Global Context

• Post-COVID rural recovery remains slow, with demand for better credit access.

• PSL hasn’t sufficiently reached marginalized farmers and informal businesses.

• New sectors like startups, climate-resilient agriculture, and agri-tech are being considered.

📜 Relevant Conventions and Treaties

• Financial Inclusion Index (RBI): India’s inclusion score improved to 60.1 in 2023, but rural access lags.

• SDG Goal 8 (Decent Work and Economic Growth) and Goal 10 (Reduced Inequalities) call for broader credit availability.

🌏 Implications for India and the World

• Can help reduce poverty, rural-urban gap, and economic disparity.

• Supports sustainable and inclusive development across regions.

• Boosts India’s MSME sector, a key employment generator.

📊 Factual References

• RBI PSL Guidelines (last updated in 2023).

• NABARD 2024 Report: PSL disbursement to agriculture sector grew by only 6%, against a target of 15%.

4. Climate Finance and India’s Push for Climate Justice

✅ Why It’s in the News

India is urging developed countries to fulfil their climate finance pledges, especially through the operationalisation of the Loss and Damage Fund, while promoting green growth through domestic initiatives.

📘 Key Points for Prelims & Mains

• India is advocating for climate justice, especially for vulnerable and developing countries.

• Seeks faster disbursal of the $100 billion annual climate finance promised by developed nations.

• Promotes green bonds, renewable energy financing, and International Solar Alliance (ISA) leadership.

🌐 Recent Developments & Global Context

• COP28 in Dubai (2023) finalized the structure of the Loss and Damage Fund, but funds remain inadequate.

• Climate disasters (e.g., floods, heatwaves) increased in 2024-25, affecting India’s agriculture and urban infrastructure.

• India co-leads Coalition for Disaster Resilient Infrastructure (CDRI).

📜 Relevant Conventions and Treaties

• UNFCCC (1992): Recognizes Common But Differentiated Responsibilities (CBDR).

• Paris Agreement (2015): India submitted updated NDCs in 2023.

• COP27/COP28: Initiated the Loss and Damage Fund to support nations facing climate-induced economic loss.

• SDG 13 (Climate Action): India’s National Action Plan on Climate Change (NAPCC) aligns with this goal.

🌏 Implications for India and the World

• India’s leadership may bridge the North-South divide in climate negotiations.

• Successful climate financing helps India transition to a low-carbon economy, improve resilience, and fulfil net-zero by 2070 commitments.

• Enhances India’s soft power as a climate leader among developing nations.

📊 Factual References

• India’s NDC (2023): Reduce emissions intensity of GDP by 45% by 2030 from 2005 levels.

• RBI’s 2024 report: India issued ₹25,000 crore worth of green bonds in FY 2023–24.

• UNFCCC Standing Committee: Developing countries need $5.8–5.9 trillion by 2030 for NDC implementation.

5. Electoral Bonds: Supreme Court Strikes Down the Scheme

✅ Why It’s in the News

In February 2024, the Supreme Court of India declared the Electoral Bonds Scheme unconstitutional due to its impact on voters’ right to know the funding sources of political parties.

📘 Key Points for Prelims & Mains

• Electoral bonds allowed anonymous donations to political parties.

• Violated Article 19(1)(a): Right to information as part of freedom of speech.

• Scheme lacked transparency, favoring ruling parties.

🌐 Recent Developments & Global Context

• RTI activists and NGOs like ADR (Association for Democratic Reforms) challenged the scheme.

• SC verdict strengthens electoral transparency.

• International bodies (e.g., IDEA) criticized India’s opaque political funding.

📜 Relevant Conventions and Treaties

• ICCPR (Article 25): Right to genuine elections with informed participation.

• UNODC’s Global Anti-Corruption Initiative: Encourages financial transparency in elections.

• India’s own Representation of People Act (1951) requires fair practices, now bolstered by this ruling.

🌏 Implications for India and the World

• Ensures voter empowerment and cleaner democratic processes.

• May lead to state funding of elections or public scrutiny platforms for political finance.

• Enhances India’s global image as a democracy committed to reforms.

📊 Factual References

• ADR Report (2023): Over 75% of political donations were anonymous under the Electoral Bonds scheme.

• SC Ruling (Feb 2024): Declared amendments to RBI Act and IT Act for bonds as unconstitutional.

• EC’s 2022 affidavit: Electoral Bonds compromise transparency in funding.

6. Women’s Reservation in Parliament: Implementation Awaited

✅ Why It’s in the News

The Women’s Reservation Act (2023) was passed by Parliament to reserve 33% seats for women in the Lok Sabha and State Assemblies — but actual implementation will occur post-delimitation in 2026.

📘 Key Points for Prelims & Mains

• First major constitutional amendment post-2010 efforts.

• Applies to SC/ST categories within the 33% quota.

• Awaiting implementation through Delimitation Commission post-2026 census.

🌐 Recent Developments & Global Context

• Currently, only 15% of Lok Sabha MPs and 9% of State MLAs are women.

• UN Women commended the Act, but criticized the delay in implementation.

• Global average for female parliamentary participation: ~26%.

📜 Relevant Conventions and Treaties

• CEDAW (1979): India ratified in 1993, promotes women’s equal representation.

• SDG 5 (Gender Equality): Encourages full and effective participation in leadership.

• Indian Constitution Articles:

  • Article 15(3): Allows special provisions for women.

  • Article 243D & 243T: Provide 33% reservation in Panchayati Raj & Urban Local Bodies.

🌏 Implications for India and the World

• Enhances gender balance in governance and improves public policy outcomes.

• May inspire similar laws in other developing democracies.

• Can shift patriarchal political structures.

📊 Factual References

• Inter-Parliamentary Union (2023): India ranks 144th in global women representation.

• PRS Legislative Research: Women’s Bills were introduced thrice since 1996 before passing in 2023.

7. Minding the Minerals Gap: Building Resilient Supply Chains

📰 Why it’s in the News?

India is taking strategic steps to secure critical mineral resources by joining global partnerships such as “Critical Mineral Clubs” and signing bilateral agreements amid increasing global competition for clean energy technologies.

🔑 Key Points for UPSC (Prelims & Mains)

• Critical Minerals are essential for EVs, semiconductors, solar panels, telecom, and defense systems.

• India imports over 85% of its critical mineral needs.

• Government released a list of 30 critical minerals including lithium, cobalt, nickel, and rare earths.

• India has signed agreements with Australia, Argentina, and plans for deep-sea exploration.

• The Quad’s Critical Minerals Partnership aims to reduce China’s dominance in global refining.

🌍 Recent Developments & Global Context

• China controls 60–90% of global refining of rare earth elements.

• The US, EU, and Japan are building diversified supply chains.

• India is also exploring the Indian Ocean seabed and strengthening its domestic exploration capacity.

📜 Relevant Conventions and Strategic Frameworks

• UNCLOS (United Nations Convention on the Law of the Sea): Regulates seabed exploration and mineral rights beyond EEZ (Exclusive Economic Zone).

• ISA (International Seabed Authority): Governs mineral-related activities in international seabed areas.

• Critical Minerals Mission (India): Launched by the Ministry of Mines to ensure supply security and strategic stockpiling.

🌐 Implications for India and the World

• Reduces over-dependence on China.

• Boosts green energy security, crucial for the success of Atmanirbhar Bharat and Energy Transition goals.

• Promotes India’s role in sustainable global value chains for clean tech.

📊 Factual References

• Geological Survey of India and Indian Bureau of Mines are lead agencies.

• NITI Aayog (2023) recommended mineral resource security as a strategic priority.

• India joined the Minerals Security Partnership (MSP) with the US-led group in 2024.

8.Custodial Brutality & Criminal Justice Reform: A Human Rights Concern

📰 Why it’s in the News?

India has seen an alarming rise in custodial deaths and abuse in prisons, triggering fresh debates on criminal justice reform and human rights protections.

🔑 Key Points for UPSC (Prelims & Mains)

• 700+ custodial deaths reported in 2023 (NCRB).

• 75% of prisoners in India are undertrials.

• Supreme Court guidelines (DK Basu case) and NHRC rules are routinely ignored.

• The 273rd Law Commission Report recommended a standalone law against custodial torture.

🌍 Global Context & Human Rights Concerns

• India has signed but not ratified the UN Convention Against Torture (UNCAT).

• UN Human Rights Council and NGOs have repeatedly flagged Indian custodial practices.

• Countries like Norway and UK emphasize restorative justice models.

📜 Treaties & Constitutional Links

• ICCPR (1966): Prohibits torture; India acceded in 1979.

• Article 21 of the Indian Constitution: Right to life and dignity includes protection from custodial torture.

• Article 22: Guarantees protection against arbitrary arrest and detention.

🌐 Implications for India

• Erodes citizen trust in legal institutions and democracy.

• Weakens India’s global human rights image.

• Calls for urgent police, judicial, and prison system reforms.

📊 Factual References

• NCRB Prison Statistics 2023: Highest custodial deaths in Uttar Pradesh, Maharashtra.

• Supreme Court Judgments: DK Basu v. State of West Bengal (1996), Prakash Kadam v. Ramprasad Vishwanath Gupta (2011).

• UNHRC Reports (2023): India urged to ratify UNCAT and legislate preventive mechanisms.

9. FM Calls for Boosted Lending by NBFCs

📰 Why it’s in the News?

The Finance Minister has directed Non-Banking Financial Companies (NBFCs) to increase credit lending, especially to support MSMEs and rural development.

🔑 Key Points for UPSC

• NBFCs account for ~25% of retail lending in India.

• Registered under Companies Act, 1956 and regulated by RBI under RBI Act, 1934.

• Cannot accept demand deposits like banks but offer loans to underserved sectors.

• Covered under RBI’s Scale-Based Regulation (SBR) framework introduced in 2021.

🌍 National Economic Context

• MSMEs still recovering from COVID-induced liquidity crunch.

• NBFC sector faced crisis post-IL&FS default (2018).

• Rural and informal sectors depend heavily on NBFCs for credit access.

📜 Relevant Institutional Frameworks

• RBI’s Prompt Corrective Action (PCA) now applies to large NBFCs (from 2022).

• SBR framework classifies NBFCs into Base Layer, Middle Layer, Upper Layer, and Top Layer (regulatory intensity increases).

🌐 Implications for India

• Revives credit flow to small businesses and semi-urban regions.

• Supports consumption demand, job creation, and financial inclusion.

• Diversifies India’s lending landscape beyond scheduled commercial banks.

📊 UPSC Quick Facts

• Major NBFCs: HDFC Ltd, Bajaj Finance, Muthoot Finance, Sundaram Finance.

• RBI’s Financial Stability Report (2024): NBFCs growing at 15% YoY, contributing to informal credit systems.

10. Namibia and India: Strategic Ties Beyond Borders

📰 Why it’s in the News?

India and Namibia are deepening strategic relations through uranium trade, rare earth cooperation, and wildlife diplomacy, notably the reintroduction of cheetahs into India.

🔑 Key Points for UPSC (Prelims & Mains)

• Namibia is a leading source of uranium, diamonds, and rare earths.

• India reintroduced cheetahs from Namibia to Kuno National Park in Madhya Pradesh (2022).

• India’s engagement is part of its SAGAR (Security and Growth for All in the Region) strategy for Indian Ocean outreach.

🌍 Recent Global Developments

• India exploring nuclear fuel supply agreements to secure its energy future.

• African nations seek South-South cooperation beyond traditional Western partnerships.

• Maritime cooperation with Namibia is part of India’s Indo-African naval diplomacy.

📜 Conventions & Biodiversity Frameworks

• Convention on Biological Diversity (CBD): India and Namibia are signatories.

• Convention on Migratory Species (CMS): Facilitates cross-border conservation of migratory animals like the cheetah.

• SAGAR Doctrine: India’s framework for maritime regional engagement.

🌐 Implications for India and the World

• Strengthens India–Africa cooperation, with mutual benefits in energy, environment, and defense.

• Wildlife diplomacy boosts soft power.

• Expands India’s footprint in resource-rich regions of Africa.

📊 UPSC Quick Facts

• Kuno National Park is the designated site for Project Cheetah.

• India-Africa Framework Agreement includes Namibia as a key strategic partner.

• Namibia has the world’s fifth-largest uranium reserves.

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11. Catastrophe Bonds: Innovative Finance for Natural Disasters

📰 Why it’s in the News?

India is exploring Catastrophe Bonds (Cat Bonds) as a financing tool to manage the economic fallout of increasing natural disasters like floods and cyclones.

🔑 Key Points for UPSC

• Cat Bonds are insurance-linked securities that raise funds for disaster relief.

• If no disaster occurs, investors earn high returns. If disaster strikes, part of their investment is used for relief.

• Countries like Mexico, Philippines, and Caribbean nations have successfully issued Cat Bonds.

🌍 Global Relevance

• India is among the top 10 disaster-prone countries globally.

• World Bank and IMF promote climate-resilient financial instruments.

• Cat Bonds provide fiscal buffers and improve risk preparedness.

📜 Treaties & Global Frameworks

• Sendai Framework for Disaster Risk Reduction (2015–30): Focuses on financial resilience and pre-disaster planning.

• Paris Agreement (2015): Encourages innovative climate finance tools for adaptation and loss mitigation.

• India’s NDMP (National Disaster Management Plan): Aligns with Sendai and SDG targets.

🌐 Implications for India

• Reduces burden on government exchequers during disasters.

• Attracts foreign investors and insurers to India’s climate finance market.

• Encourages resilient infrastructure investment in vulnerable states.

📊 UPSC Quick Facts

• NDMA (National Disaster Management Authority) oversees disaster preparedness.

• SEBI is framing regulations for Cat Bonds and green finance instruments in India.

• India suffers economic losses worth $10–15 billion annually from natural disasters (MoEFCC data).

12. Measuring Inequality: Numbers That Matter

📰 Why it’s in the News?

As debates around wealth gaps rise, India is reassessing how it measures poverty and inequality, including adopting multidimensional indicators alongside income-based ones.

🔑 Key Points for UPSC

• Gini Coefficient: Measures income inequality (India’s Gini: ~0.35).

• Multidimensional Poverty Index (MPI): Includes health, education, and living standards.

• As per UNDP-Oxford Report, India lifted 415 million people out of poverty (2005–2021).

🌍 Global Trends

• Post-COVID, inequality has risen globally.

• UN, World Bank, and IMF promote inclusive metrics for measuring poverty.

• High inequality linked to slower growth and social instability.

📜 Conventions & SDG Goals

• SDG 10: Reduce inequality within and among countries.

• UNDP Human Development Reports track multidimensional poverty.

• India’s alignment with 2030 Agenda for Sustainable Development includes poverty reduction metrics.

🌐 Implications for India

• Helps in targeted welfare delivery (e.g., free food grains under PMGKAY).

• Improves state-wise planning through granular data.

• Enables evidence-based policymaking for inclusive development.

📊 UPSC Quick Facts

• Agencies: UNDP, Oxford Poverty and Human Development Initiative (OPHI), NITI Aayog.

• MPI covers 10 indicators across three dimensions (health, education, standard of living).

• Gini Index from World Bank, MPI published annually.