Daily Current Affairs 5 June 2025 – UPSC Focus

Introduction

Welcome to the Daily Current Affairs 5th June 2025 update based on The Hindu. This article covers essential news and analysis designed specifically for UPSC exam aspirants. Stay informed with the latest developments to boost your preparation.

1. Battery Energy Storage Systems (BESS) – Technologies & India’s Progress

 Key BESS Technologies

1. Lithium-Ion Batteries

   • Most widely used for grid and EV storage.

   • Offers high efficiency and quick charge-discharge response.

   • Common in portable electronics and EVs.

2. Flow Batteries

   • Suited for long-duration storage (e.g., overnight or backup).

   • Features better cycle life, but less energy density.

   • Ideal for integrating renewable energy.

3. Solid-State Batteries

   • Emerging technology with higher energy density and improved safety.

   • Potential future solution for EVs and grid storage.

4. Lead-Acid Batteries

   • Low-cost, mature technology but limited by shorter life and low efficiency.

   • Used in rural and backup power setups.

5. Chemical Energy Storage

   • Stores energy in chemical bonds, e.g., in hydrogen or synthetic fuels.

   • Suitable for large-scale or long-distance energy transport.

 Major Challenges in BESS Deployment

• High Capital Costs: Imports and technology make storage expensive.

• Supply Chain Risks: Dependence on lithium, cobalt, and nickel, mostly imported.

• Battery Degradation: Performance declines over time, impacting efficiency.

• Environmental Issues: Improper recycling/disposal poses pollution risks.

• Safety Concerns: Lithium-ion batteries are prone to overheating and fire.

• Policy Gaps: Lack of long-term, stable storage-specific policies and tariffs.

🇮🇳 Indian Government Initiatives

• National Energy Storage Mission (NESM): Pushes domestic battery manufacturing.

• PLI Scheme: ₹18,100 crore outlay to boost large-scale battery production.

• Viability Gap Funding (VGF): ₹3,760 crore for 4 GWh storage capacity.

• Energy Storage Obligation: Makes storage essential for renewable energy deployment.

• Green Hydrogen Policy: Encourages BESS for hydrogen-linked power.

• FAME, SECI & NTPC Pilots: Promote adoption through subsidies and pilot projects.

Redefining Energy Security

India is transitioning from fossil fuel dependence to clean energy security based on:

• Availability: Sufficient energy resources

• Accessibility: Reach for all citizens

• Affordability: Cost-effective solutions

• Environmental Acceptability: Minimal ecological harm

Supports SDG 7 (Clean Energy Access) while addressing:

• Climate Change

• Geopolitical Energy Risks

India’s BESS Vision & Progress

• Targets:

  • 500 GW non-fossil energy by 2030 (217.62 GW achieved by Jan 2025)

  • 47 GW of Battery Energy Storage by 2032

• Key Roadblocks:

  • Slow Grid Modernization: Grid upgrades lag behind BESS growth.

  • Raw Material Shortages: Especially lithium and cobalt.

  • Financing Hurdles: Difficulty in funding large-scale BESS projects.

2. Census 2026–27: A Historic Enumeration

Phases & Timeline

• First Phase (House Listing): Begins October 1, 2026

• Second Phase (Population Enumeration): From March 1, 2027 (Reference Date)

• Digital Census: First full-scale digital enumeration, expected to improve accuracy and speed.

• Provisional Results: By March 2027

• Final Report: Late 2027

Key Highlight – Caste-Based Census

• First caste enumeration since 1931, covering all communities beyond SC/ST.

• Raises debates on political utility, social impact, and methodology.

• Politically sensitive due to demands for OBC data and resource allocation concerns.

Historical Parallel: 1931 Census

• Last comprehensive caste-based census.

• Conducted across British India amid:

  • Logistical issues (Great Depression, Salt March)

  • Political resistance (Congress boycott, violence, regional defiance)

• Findings:

  • Population: 35.05 crore (10.6% growth)

  • Major cities: Kolkata > Mumbai > Chennai

  • Issues in caste reporting: fluid terminology, underreporting in Bengal and Punjab.

Key Lessons:

• Data quality vs. public cooperation tension.

• Enumeration challenges in remote/diverse regions.

Delimitation Debate: Post-Census Political Tension

What Is Delimitation?

• Redrawing of Parliamentary & Assembly seats based on population.

• Constitutional provision under Articles 81 & 82.

• Will begin after Census 2026, requiring:

  • Delimitation Act

  • Commission formation

  • Possibly, a constitutional amendment to lift the Lok Sabha seat cap (550).

South-North Divide

• Southern states fear seat loss despite population control.

• Tamil Nadu CM alleges Centre is delaying the Census to manipulate representation.

• DMK demands delimitation freeze based on 1971 data to continue till 2056.

Women’s Reservation & Census Link

• The 33% women’s reservation law for Parliament/Assemblies is linked to delimitation.

• This makes opposition to delimitation politically sensitive — could be seen as anti-women.

Operational & Administrative Challenges

• 25–30 lakh enumerators needed for both phases.

• Digital mode may reduce errors and speed up processing.

• Full-scale coordination and gazette notification required for each step.

3. Offshore Asset Growth Among India’s Next-Gen HNWIs

Why in News:
Almost all of India’s upcoming high-net-worth individuals (HNWIs) are planning to expand their offshore investments by over 10% by 2030.

Key Points:

• Investment Drivers: Better returns (55%), top-class financial services (65%), global market access (54%), and tax benefits (49%).

• India’s Wealth Rise: In 2024, India recorded a rise of 8.8% in HNWI population, now totaling 378,810 millionaires with $1.5 trillion in wealth.

Timeline:

• 2024: Significant HNWI growth recorded.

• 2030: Offshore asset share expected to increase further.

Recent Developments:

• Wealthy Indians are increasingly diversifying investments to manage risk and optimize returns through global exposure.

Improvements:

• India should enhance domestic investment channels and ease capital regulations to retain wealth within the country.

UPSC Quick Facts:

• HNWI: Person with $1 million or more in investable assets.

• Wealth Management: Financial services tailored for affluent individuals.

• Capital Flight: Outflow of capital due to better foreign opportunities or instability at home.

• Tax Havens: Countries offering low tax and high confidentiality for foreign investors.

4. India Opposes ADB’s $800 Million Funding to Pakistan

Why in News:
India has objected to the Asian Development Bank’s $800 million loan to Pakistan, fearing fund misuse and citing poor accountability.

Key Points:

• India’s Concerns: Pakistan might use funds for military needs, not development.

• Economic Indicators: Pakistan’s tax-to-GDP ratio dropped from 13% (2017-18) to 9.2% (2022-23), reflecting weak domestic resource mobilization.

• FATF Context: India argues that Pakistan hasn’t adequately addressed terror financing, pushing for it to stay on the FATF grey list.

Timeline:

• 2017–2023: Decline in Pakistan’s tax collection efficiency.

• 2024: India raises objections at ADB forums.

Recent Developments:

• India’s protest underscores geopolitical tension and the importance of monitoring international funding to high-risk countries.

Improvements:

• India recommends that Pakistan demonstrate real reforms in anti-terror finance efforts and economic governance before receiving more aid.

UPSC Quick Facts:

• ADB: Regional bank founded in 1966 to foster development in Asia-Pacific.

• FATF Grey List: Flags nations with deficiencies in preventing financial crimes.

• Terror Financing: Major concern influencing international relations and aid decisions.

• IFIs: Bodies like IMF, ADB, and World Bank that influence global development funding.

5. Exposomics for Better Environmental Health

Why in News:
Exposomics is emerging as a new scientific approach to understanding how lifelong environmental exposures affect human health.

Key Points:

• What is Exposome: Includes all environmental exposures from diet, pollution, stress, lifestyle, to internal changes like microbiome and metabolism.

• Limitations of Old Research: Traditional health studies often examine one factor at a time, missing the big picture.

• Advantages: Helps find unknown disease triggers, enables early prevention, and supports personalized health care.

• Applications: Valuable for understanding causes of chronic and neurological diseases, and improving public health strategies.

Timeline:

• Exposomics is a growing field, gaining global traction in the past decade.

Recent Developments:

• India is beginning to explore exposomics to study health impacts from its unique environmental and societal conditions.

Improvements:

• Invest in advanced monitoring tools, big data platforms, and interdisciplinary research to make exposomics impactful.

UPSC Quick Facts:

• Exposomics: Comprehensive study of environmental impacts on health.

• Environmental Health: A key pillar in disease prevention and wellness.

• Precision Medicine: Exposomics helps personalize treatment plans.

• Public Health: Informs better strategies for managing pollution-related diseases.

• SDGs: Supports Goal 3 (Health) and Goal 11 (Sustainable Cities).

6. Empowering Women in Green Business

Why in News:
There is a growing focus on empowering women entrepreneurs to lead India’s green and sustainable development efforts.

Key Points:

• Dual Advantage: Combines climate action with gender empowerment.

• Economic Potential: Women offer community-based, sustainable solutions.

• Barriers: Access to credit, tech, skills, and networks remain key challenges.

Government & NGO Support:

• Women Entrepreneurship Platform (WEP) by NITI Aayog.

• Women in Sustainability (WiS) by CEEW.

• Green Skill Development Program also supports women training in environmental fields.

Examples of Green Businesses:
Sustainable farming, renewable energy, waste recycling, eco-tourism, ethical fashion.

Recent Developments:
More women-led startups are emerging in green tech sectors thanks to incubation and capacity-building support.

Improvements:

• Provide targeted financial products and mentorship programs.

• Develop green business incubators and amplify success stories.

UPSC Quick Facts:

• SDG 5 & SDG 13: Gender Equality and Climate Action.

• Green Economy: Focuses on sustainable and inclusive economic growth.

• Microfinance & SHGs: Crucial in empowering rural women in eco-enterprises.

• Climate Justice: Recognizes women’s disproportionate climate burden.

• NITI Aayog: Plays a major role in policy backing for women entrepreneurs.

7. The Seeds of Sustainability for India’s Textile Leadership

Why in News:
India seeks to establish global leadership in sustainable textiles by greening the value chain.

Key Points:

• Heritage + Innovation: Rich tradition combined with eco-friendly innovations.

• Environmental Burden: The textile sector is resource-intensive—needs greening.

• Sustainability Pillars:

  • Raw Material: Organic cotton, recycled fibres.

  • Production: Water/energy efficiency, ethical labor.

  • Circularity: Recycling, upcycling, design for reuse.

Government Support:

• PM MITRA Scheme: Establishes eco-integrated textile parks.

• PLI Scheme for Textiles: Encourages domestic sustainable manufacturing.

Recent Developments:
Collaborations like Future Forward Factories are promoting circular textile practices with industry leaders.

Improvements:

• Incentives for sustainable practices.

• Skill development for green jobs.

• Strengthening green certification systems.

UPSC Quick Facts:

• Circular Economy: Reduces waste by reusing materials.

• Sustainable Fashion: Focus on ethical sourcing and reduced carbon impact.

• Textile Clusters: Concentrated zones for textile innovation and efficiency.

• Green Jobs: Employment aligned with environmental objectives.

8. Most India Next-Gen HNWIs Will Add 10% More Offshore Assets

Why in News:
A report predicts that nearly all next-generation Indian HNWIs plan to grow their offshore investments by 2030.

Key Points:

• Drivers:

  • Diverse investment options.

  • Advanced global wealth services.

  • Favorable tax and regulatory regimes.

• Capital Diversification: Reduces risks tied to domestic market fluctuations.

Current Stats (2024):

• HNWI Population: Grew by 8.8%.

• Total Wealth: $1.5 trillion across 378,810 Indian millionaires.

Recent Developments:
This trend signals growing globalization and highlights the need for India to retain wealth through better local investment avenues.

Improvements:

• Enhance investment opportunities in India.

• Ensure regulatory stability.

• Offer domestic alternatives to global wealth services.

UPSC Quick Facts:

• HNWI: $1M+ in investable assets.

• Offshore Financial Centres (OFCs): Low-tax jurisdictions for wealth storage.

• FEMA: Regulates India’s cross-border transactions.

• Capital Account Convertibility: Degree of financial openness to foreign assets.

• Tax Planning vs Tax Avoidance: Thin line often explored in offshore holdings.

9. India ‘Vehemently Opposed’ ADB’s Funding to Pakistan

Why in News:
India has strongly objected to ADB’s approval of an $800 million loan to Pakistan, citing poor accountability and terror links.

Key Points:

• Misuse Concerns: Fears that funds may support military or non-developmental purposes.

• Poor Fiscal Management: Pakistan’s tax-to-GDP ratio dropped from 13% (2017-18) to 9.2% (2022-23).

• FATF Oversight: India continues to urge international scrutiny of Pakistan’s terror financing.

Timeline:

• 2017–23: Declining tax mobilization in Pakistan.

• 2024: India’s objection voiced during ADB’s approval process.

Recent Developments:
India’s opposition reflects broader concerns about transparency, regional security, and international lending norms.

Improvements Suggested by India:

• Strengthen oversight on fund utilization.

• Demand stronger anti-terror financing actions from Pakistan.

UPSC Quick Facts:

• ADB: Founded in 1966, headquartered in Manila.

• FATF Grey List: Nations under increased scrutiny for terror finance and money laundering.

• International Financial Institutions (IFIs): Includes IMF, ADB, World Bank, etc.

• India’s Position: Advocates for responsible lending aligned with global security norms.

10. World Trade Organization (WTO): Dispute Settlement & Trade Barriers

Goals of the WTO

1. Economic Efficiency

   • Aims to reduce trade barriers.

   • Ensures better prices, more choices, and lower costs for consumers.

2. Development & Equity

   • Supports employment and growth in developing nations.

   • Gives voice to weaker economies in global trade rules.

3. Environmental & Social Balance

   • Prevents misuse of environmental or social issues as trade barriers.

   • Ensures trade supports sustainable goals.

4. Global Peace & Stability

   • Promotes predictability and reduces chances of trade wars.

   • Discourages protectionism and uncertainty.

GATT 1947 System (Pre-WTO Mechanism)

• Article XXIII(2): Encouraged bilateral consultation before dispute decisions.

• Dispute Resolution: Consensus-based decisions.

• Weaknesses:

  • Positive consensus allowed blocking by any country.

  • Veto power weakened enforcement.

Uruguay Round (1986–1994) – Formation of WTO & DSU

• Established Dispute Settlement Understanding (DSU).

• Key reforms:

  • Negative consensus (decisions harder to block).

  • Strict timelines:

    • 1 year for panel rulings.

    • 15 months if appealed.

  • Appellate Body (AB) created for legal review.

  • Removed unilateral blocking of reports.

WTO Dispute Settlement Process (DSU)

1. Consultation (60 days) – Mutual discussions.

2. Panel Formation (45 days) – Cannot be blocked by respondent.

3. Panel Report (6 months) – Reviewed by Dispute Settlement Body (DSB).

4. Appeal (60–90 days) – Legal review by Appellate Body.

5. Enforcement:

   • Reasonable time for compliance.

   • If violated:
     → Negotiations for compensation (20 days)
     → Trade sanctions approved by DSB.

Key Challenges in DSU

1. National Sovereignty Issues

   • WTO panels often scrutinize domestic laws.

   • Accusations of “judicial overreach.”

2. Appellate Body Crisis (Since 2019)

   • U.S. blocks judge appointments.

   • AB non-functional → rise in ad-hoc arbitration.

3. Operational Concerns

   • Delay in rulings.

   • Lack of transparency and risk of bias.

Case Studies of WTO Disputes

1. India–U.S. Agricultural Products (DS430)

• Issue: India’s poultry import ban challenged.

• Ruling: Not based on scientific evidence.

• Outcome: India revised its Sanitary and Phytosanitary (SPS) rules.

2. India–U.S. Solar Cells Case (DS456)

• Issue: Domestic Content Requirement (DCR) under Solar Mission.

• Violation: WTO rules on TRIMs and National Treatment.

• Outcome: Shift towards R&D and competitive tax policies.

3. India–U.S. Export Subsidies (DS541)

• Issue: India’s MEIS scheme challenged under SCM Agreement.

• Outcome: MEIS phased out; replaced by WTO-compliant RoDTEP.

Reform Suggestions for WTO Dispute Resolution

1. Pre-Panel Solutions

   • Mandatory mediation/conciliation.

   • Sovereignty-sensitive arbitration.

2. Appellate Body Revival

   • Permanent judges with clear mandates.

   • Public hearings to ensure transparency.

3. Alternative Enforcement Tools

   • Monetary fines or compensation.

   • Reduced reliance on trade sanctions.

4. Judicial Independence

   • A standing WTO court with legal experts.

   • Define clear legal boundaries to prevent overreach.

 Relevant WTO Ministerial Conferenc

Doha Ministerial (2001)

• Launched Doha Development Agenda.

• Focus:

  • Agriculture reforms

  • TRIPS flexibility for medicines

  • Special & Differential Treatment (S&DT)

Nairobi Ministerial (2015)

• Doha Round stalled.

• New focus areas:

  • E-commerce

  • Investment & Competition policy

• Developing countries demanded:

  • Food security safeguards

  • Special Safeguard Mechanism (SSM) for farmers.

 Key Recommendations for India at WTO

1. Fix Agriculture Agreement (AoA) Bias

   • No AMS for developed countries.

   • Update ERP benchmarks.

2. Strengthen S&DT

   • Keep Development Box subsidy flexibility.

3. Secure Public Stockholding

   • Permanent solution for food security programs.

4. Adopt SSM

   • Protect farmers from import surges.

5. Export Reform

   • Shift to RoDTEP and tax-based incentives.

6. Alliances & Coordination

   • Build coalitions with like-minded nations.

   • Improve domestic coordination among ministries.