UPSC Current Affairs 19 June 2025 brings you the most relevant topics for Prelims and Mains. Today’s coverage includes India’s diplomatic outreach to Canada, major reforms in the FinTech sector, the upcoming GDP base year revision, global repercussions of the Iran-Israel conflict, and India’s push to become an educational hub for foreign universities. These updates are crucial for UPSC aspirants to understand global geopolitics, economy, and policy reforms. Don’t miss this daily dose of UPSC Current Affairs 19 June! 1. India-Canada Reset: A Diplomatic Reboot What’s the News? India and Canada are seeking to mend their strained bilateral relationship by appointing new High Commissioners. The reset comes after months of diplomatic tension over allegations linked to Khalistani separatism, diaspora politics, and trade barriers. Key Points for UPSC: India and Canada had expelled each other’s diplomats over the Nijjar incident. Canada had accused India of foreign interference; India denied all allegations. Despite tensions, India is Canada’s 9th largest trading partner; bilateral trade was $8.4 billion in 2024, with India exporting goods worth $5.37 billion. Over 600,000 Indian students study in Canada, and 1.4 million Canadians are of Indian origin. Global Context & Developments: Canada's Liberal Party, led by PM Trudeau, is politically aligned with Khalistani-sympathetic groups. A Canadian parliamentary report labeled India the second biggest foreign threat. Attacks on Indian consulates and rhetoric over Kashmir aggravated ties. Relevant Agreements and Frameworks: Vienna Convention on Diplomatic Relations (1961) – governs expulsion and appointment of diplomats. 2015 Strategic Partnership between India and Canada focuses on nuclear cooperation, trade, and diaspora ties. Implications for India & the World: The appointment of High Commissioners signals a diplomatic thaw. Need for Track II diplomacy and delinking the Khalistan issue from trade negotiations. Potential for revitalizing the stalled Comprehensive Economic Partnership Agreement (CEPA). UPSC Quick Facts: Indian diaspora = 4% of Canadian population CEPA negotiations stalled due to political tensions 2015 MoUs on nuclear and scientific cooperation still in effect Sikh diaspora engagement crucial for diplomacy 2.FinTech in India: Boon or Bubble? What’s the News? India’s Finance Minister recently highlighted the growing role of FinTech in financial inclusion, innovation, and employment. However, the sector also faces challenges such as cybersecurity threats, money laundering, and regulatory oversight. Key Points for UPSC: India is the 3rd-largest FinTech ecosystem globally. Government platforms like UPI, JAM Trinity, ONDC, and India Stack drive the sector. Over 17 FinTech unicorns have emerged, boosting FDI and job creation. Recent Developments & Global Context: A PSC report flagged that many digital lending apps are foreign-owned and have been used for money laundering (e.g., Pyppl App). RBI introduced Digital Lending Guidelines (2022) to protect consumer data. India plans to cap digital payment volume to 30% per app to avoid monopoly risks. Relevant Regulations: Payment & Settlement Systems Act, 2007 RBI Regulatory Sandbox (2019) – promotes safe innovation RBI Digital Lending Guidelines (2022) Implications for India: Financial inclusion: Digital finance now covers previously unbanked populations. Cyber threats and unethical practices must be managed through strong regulation. Encourages a competitive digital ecosystem. UPSC Quick Facts: UPI processes over 75% of digital transactions Fraud-to-sales ratio remains below 0.0015% 30% volume cap proposed to curb platform dominance RBI acts to control illegal digital lending 3.Iran-Israel Conflict: Ripple Effects on India What’s the News? Tensions between Iran and Israel have escalated due to alleged proxy attacks and Iran’s nuclear program. India, which is heavily reliant on Middle Eastern trade, could suffer economic setbacks. Key Points for UPSC: India exports over 1.2 million tonnes of Basmati rice to Iran (~20% of total exports). Iran also imports 20,000 tonnes of Indian tea. Disruption at Strait of Hormuz threatens oil transport; 84% of Asia’s crude passes through here. Global Legal Context: Israel cited Article 51 of the UN Charter (self-defense) and Caroline Doctrine (1837) for pre-emptive strikes. Critics argue this violates Article 2(4) of the UN Charter, which bars unilateral military actions. Relevant Treaties: UN Charter Article 2(4) – prohibits force unless in self-defense Caroline Doctrine (1837) – legitimizes anticipatory self-defense only if threat is imminent Implications for India: Global oil prices may spike, raising India’s import bill. Disrupted exports of food grains and tea. Raises risk insurance premiums and freight costs for Indian companies. UPSC Quick Facts: Strait of Hormuz = key chokepoint for global oil Global Basmati prices fell by $100/tonne Risk of Red Sea/Suez access being blocked 4.GDP Base Year Revision: A New Economic Mirror What’s the News? India will update its GDP base year to 2022–23 (from 2011–12), with revised data expected by February 2026. Key Points for UPSC: GDP base year revisions reflect structural shifts in the economy. Will incorporate data from GST, post-COVID recovery, and digitization. India is nearing the rank of 3rd-largest global economy. Historical Context: India has revised the GDP base year 7 times since 1948. The 2017–18 planned revision was dropped due to data inconsistencies. Relevant Concepts: GDP measures the market value of final goods/services. Real GDP = adjusted for inflation. Implications for India: More accurate fiscal and economic planning. Enhances credibility with global investors and institutions like the IMF and World Bank. UPSC Quick Facts: 8th GDP base year revision Past base years: 1999–2000 → 2004–05 → 2011–12 2015 revision faced criticism for overestimations 6.India Will Never Accept Mediation: Modi’s Message to Trump What’s the News? PM Modi made it clear to President Trump that India will not accept any third-party mediation, especially on Kashmir, reaffirming its stand on bilateralism. Key Points for UPSC: Trump claimed he “stopped a war” between India and Pakistan. Modi reiterated India’s commitment to bilateral talks only. Official clarification issued by Foreign Secretary Vikram Misri. Trump offered to mediate on Kashmir, which India firmly rejected. U.S. soft stance on Pakistan and H-1B restrictions added strain. CENTCOM praised Pakistan as a “phenomenal partner.” Global Developments: Trump’s remarks during a press interaction confused diplomatic observers. India had to clarify its position in line with historical treaties. Relevant Treaties: Simla Agreement (1972) – mandates bilateral resolution of India–Pakistan disputes UN Charter Article 2(7) – prohibits external interference Implications for India: Strengthens diplomatic credibility and sovereignty. Reinforces India’s strategic autonomy. UPSC Quick Facts: 35-minute call between Modi and TrumpSimla Agreement = legal backbone of India's positionForeign Secretary’s role critical in damage control 7.The Real Challenge for Foreign Campuses in India What’s the News? Following UGC’s 2023 regulations, foreign universities like Deakin, Wollongong, and Southampton have launched Indian campuses, but challenges loom. Key Points for UPSC: Campuses established in GIFT City and Gurugram. Focused on high-demand subjects like AI, design, and business. Challenge: Competing with Indian institutions like IITs and IIMs. Global Academic Trends: India seen as a regional hub for education. However, faculty quality, infrastructure, and over-commercialization raise concerns. Relevant Guidelines: UGC (Foreign Campus) Regulations, 2023 National Education Policy (NEP) 2020 – encourages foreign collaborations Implications for India: May enhance India’s global academic footprint. Risk of “diploma mills” if not properly regulated. UPSC Quick Facts: First movers: Deakin (Australia), Wollongong, Southampton (UK)NEP 2020 encourages such collaborationMost courses market-driven (AI, business, media) [caption id="attachment_26279" align="aligncenter" width="202"] Daily UPSC Current Affairs – 19th June 2025[/caption]
