UPSC Current Affairs 1st July 2025 covers key issues like GST reforms, the rollout of Kavach safety tech, India’s evolving foreign policy, tobacco taxation gaps, and declining rural school enrolment. These topics are crucial for UPSC Prelims and Mains 2025 and sourced from The Hindu, PIB, and Indian Express. Make these points part of your daily revision to stay ahead in the UPSC race. Watch Video – Click [caption id="attachment_26302" align="alignnone" width="300"] UPSC General Studies (GS) Syllabus Breakdown 2025–27[/caption] 1.India in a Perilous World: Strategic Forecasting for a New Global Order What’s the Issue? India is navigating a rapidly evolving geopolitical landscape, marked by: Rising military conflicts (e.g., Russia–Ukraine, Israel–Iran). US inward focus ("America First") and withdrawal from global leadership roles. Declining influence of multilateral institutions like the UN and WTO. Need for India to adopt strategic foresight, diplomatic agility, and a multi-alignment policy. Key Strategic Takeaways 🔸 Global Disorder and Power Shifts Emergence of a multipolar world. Rise of China's assertiveness and strategic assertiveness. Erosion of credibility of global institutions (UN, WTO, WHO). US strategic fatigue and shifting priorities. 🔸 India’s Balanced Approach Pursues strategic autonomy—non-alignment in major global rivalries. Engages multilaterally via: G20 BRICS Quad Shanghai Cooperation Organisation (SCO) Maintains neutrality in complex conflicts like: Israel–Iran Russia–Ukraine 🔸 Defence and Security Readiness Heightened risk of a two-front war involving China and Pakistan. Push for: Military modernization Cybersecurity upgrades Strengthening maritime infrastructure Diplomatic Tools and Doctrines Act East Policy: Deepens engagement with ASEAN and East Asia. Indo-Pacific Strategy: Promotes maritime security and freedom of navigation. Neighbourhood First Policy: Strengthens relations with South Asian neighbours. Leadership in Global South: Positions India as a representative of developing nations. Digital & Climate Diplomacy: Advocates for: Equitable climate financing (Paris Agreement) Ethical use of digital platforms and data sovereignty Relevant Global Frameworks & Commitments UN Charter: Emphasizes peaceful coexistence and multilateralism. Quad Joint Statements: Support a free, open, inclusive Indo-Pacific. Paris Climate Agreement: India’s commitment to net-zero by 2070. Sustainable Development Goals (SDGs): Provide a common roadmap for global development and cooperation. Implications for India Requires a multi-dimensional foreign policy balancing: National interests Global values Regional stability India’s role in global governance will depend on its ability to lead in: Climate negotiations Peacebuilding Technology governance Rising expectations on India to act as a bridge between developed and developing nations. Way Forward Strengthen the Indian Foreign Service (IFS): Train officers in regional languages, technology, global economics, and security studies. Enhance diplomatic infrastructure and analytical capacity. Expand Strategic Outreach: Build stronger ties with Africa, Latin America, and ASEAN nations. Focus on energy, food, and technology partnerships. Leverage India’s Global Platforms: Utilize outcomes from the G20 presidency to shape: New digital governance models Inclusive global health systems 2.GST Reforms & Tobacco Taxation: The Road Ahead Background The Goods and Services Tax (GST) was introduced in 2017 to streamline India's complex indirect tax system. While it unified taxation, several challenges remain, especially in sectors impacting public health and revenue efficiency, like tobacco. Key Issues with GST Implementation 🔸 Tax Structure Challenges: Lack of uniformity in tax rates across similar goods. Dual system confusion: Specific tax (fixed per unit) vs Ad valorem tax (percentage of price). Complexity in tax filings and compliance for MSMEs and small traders. 🔸 Health and Social Concerns: Tobacco products like beedis escape high taxation, despite severe health impacts. Beedis often exempted from GST compensation cess, unlike cigarettes which face 28% GST + cess. Public Health Impact: Tobacco Taxation Gaps India faces a tobacco-related productivity loss of ₹1.8 lakh crore/year. Health systems like Ayushman Bharat and PM-JAY are overwhelmed by tobacco-linked NCDs (non-communicable diseases). Beedis, being cheap and widely consumed, disproportionately harm low-income groups, deepening health inequity. Global Best Practices & Recommendations WHO FCTC: Recommends taxing tobacco at 75% of retail price to discourage consumption. Countries like Australia and Philippines have successfully used high taxation to reduce tobacco use. Legal and Policy Framework in India COTPA, 2003: Controls tobacco advertisements, packaging, and sale. Article 47: Directs the State to improve public health and reduce harmful substances. National Tobacco Control Programme (NTCP): India’s core initiative to reduce tobacco usage. WHO-FCTC: International treaty that India is a signatory to, guiding tobacco control policies. Concerns & Consequences Uneven taxation leads to price distortion and easy access to harmful products like beedis. Under-taxation allows industry lobbying and weakens policy enforcement. Higher GST on essentials burdens the common citizen, while some harmful products escape fair taxation. Potential increase in illicit trade if taxation is not accompanied by strong enforcement. Way Forward: Reforms & Recommendations 🔸 GST Reforms: Rationalize tax slabs to ensure simplicity and equity. Broaden the GST base to include currently exempted harmful products like beedis. Create a predictable and stable tax environment for businesses. 🔸 Tobacco Control: Include beedis under GST Compensation Cess to ensure parity with cigarettes. Strengthen implementation of COTPA and NTCP, especially at the grassroots level. Promote crop diversification in regions dependent on beedi production to protect livelihoods. Educate the public on the true cost of tobacco to health and economy. 3.Sheer Negligence: Railway Safety & the Kavach Delay What’s the Issue? Despite repeated train accidents, deployment of Kavach, India’s indigenously developed Automatic Train Protection (ATP) system, remains inadequate. Only a fraction of the network has coverage, putting millions at risk. Key Highlights: Kavach: Developed under Make in India; prevents collisions by auto-stopping trains. Coverage: Just 1,500 km out of 34,000 km planned. CAG Reports: Highlight under-utilized safety funds and poor planning. Global Best Practices: Japan: ATC system has nearly eliminated fatal accidents. Europe: ETCS ensures high safety standards. Balasore Tragedy (2023) reignited urgency in India. Policy Frameworks: National Rail Plan 2030: Includes safety as a key goal. SDG 9: Focuses on building resilient and safe infrastructure. Implications: Reduces public trust in Indian Railways. Affects India’s flagship projects like Vande Bharat and Gati Shakti. Delays may result in avoidable casualties and global embarrassment. Way Forward: Prioritize Kavach on all high-density and accident-prone routes. Set up an independent safety regulator for Indian Railways. Release transparent reports after every accident to ensure accountability. 4. Roll Crunch: Falling Rural School Enrolment in India What’s the Issue? Government schools in rural India are witnessing a sharp decline in student enrolment. This poses a serious challenge to India’s universal education goals and demographic dividend. UPSC Insights: UDISE+ 2023: Over 1 lakh rural schools reported declining enrolment. Reasons: Declining birth rate Internal migration Shortage of teachers Single-teacher schools & digital divide widen urban–rural educational gaps. Context: COVID-19: Caused severe learning loss, especially in remote areas. NEP 2020: Advocates for school consolidation, digital classrooms, and holistic learning. Legal & Global Frameworks: Article 21A: Guarantees free and compulsory education. SDG 4: Ensures inclusive, equitable quality education. Implications: Increases drop-out rates and learning poverty. Threatens India’s long-term productivity and youth potential. Impacts socio-economic mobility in rural areas. Way Forward: Launch mobile schools, e-learning vans, and community-based learning hubs. Improve teacher recruitment and offer rural incentives. Ensure NEP provisions are implemented effectively, especially in backward districts. 5. 50 Years Since the Emergency (1975–77) 🔹 Overview: Imposed on June 25, 1975, for 21 months, considered one of the darkest periods in India’s democratic history. 🔹 Constitutional Provisions: Covered under Articles 352–360 of the Constitution (Part XVIII). National Emergency can be declared in cases of war, external aggression, or armed rebellion. 🔹 Procedure: Requires written recommendation from the Cabinet. Must be approved by Parliament within 1 month, then renewed every 6 months. Can be revoked by the President or by Lok Sabha resolution (post 44th Amendment). 🔹 Impacts: 🔸 Centre–State Relations: Centre can issue directions on any subject. Parliament can legislate on State List matters. Ordinances can be issued by the President if Parliament is not in session. 🔸 On Legislature: Lok Sabha and State Assemblies' term can be extended 1 year at a time, up to 6 months post-Emergency. 🔸 On Fundamental Rights: Article 19 automatically suspended (external emergency). Articles 20 & 21 cannot be suspended (as per 44th Amendment, 1978). 🔹 Key Events: ADM Jabalpur case: Legal remedy for rights violation was denied. Mass arrests, censorship, forced sterilization campaigns. 38th & 42nd Amendments concentrated power in the executive. 🔹 Reforms & Legacy: 44th Constitutional Amendment: Imposed checks on Emergency declaration. Protected critical rights (Art. 20 & 21). Minerva Mills Case (1980) reaffirmed judicial review and Basic Structure Doctrine. Importance of press freedom, citizen vigilance, and institutional safeguards. 6. 10 Years of Digital India (2015–2025) 🔹 Objective: Launched in 2015 to ensure digital access, inclusion, and empowerment. 🔹 Implementing Body: Ministry of Electronics & Information Technology (MeitY). 🔹 Achievements: Growth in digital payments (UPI), e-governance, and platforms like DigiLocker. Digital infrastructure via BharatNet, PM-WANI. 🔹 Challenges: Digital Divide: Gender: Women = only 1/3 of users. Urban-rural gap: 67% urban vs 31% rural. Caste divide: SC/STs lag behind General category. Cybersecurity threats: Aadhaar data breach of 81 crore individuals. Low digital literacy: Only 34% of Indians are digitally literate. Slow internet speeds: Ranked 25th globally (as of Nov 2024). 🔹 Way Forward: Expand rural connectivity. Launch digital literacy missions. Create an Indian Data Protection Law modeled on GDPR. Enhance cyber fraud protection. 7.Financial Stability Report – June 2025 🔹 Published by: Reserve Bank of India (RBI) twice a year (June & December). 🔹 What it Covers: Stability of financial institutions. Economic trends and risks. Credit growth and asset quality. 🔹 Highlights: Indian economy remains resilient despite global turbulence. Inflation stable at around RBI’s target (4% ±2%). GDP Growth projected at 6.5% for FY 2026. Concerns: Private banks hold over 52% of NPAs in unsecured loans. Gross NPAs may rise to 2.5% by FY27. Capital Adequacy Ratio may slightly decline. 8.Geographical Indications (GI) & Cultural Protection 🔹 What is a GI Tag? A label identifying products based on their geographic origin and unique qualities. GI protects traditional products like Basmati rice, turmeric, and Darjeeling tea. 🔹 Legal Framework: Governed by the GI Act, 1999, enacted under WTO obligations. Managed by the GI Registry in Chennai, under the Ministry of Commerce. 🔹 Key Facts: GI tag is valid for 10 years, renewable indefinitely. Applies to natural, agricultural, manufactured, and handicraft goods. 🔹 Significance: Promotes local artisans and farmers. Prevents cultural misappropriation by foreign brands. [caption id="attachment_26213" align="alignnone" width="300"] Daily Current Affairs1st july 2025[/caption]
