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 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. 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. Solid-State Batteries Emerging technology with higher energy density and improved safety. Potential future solution for EVs and grid storage. Lead-Acid Batteries Low-cost, mature technology but limited by shorter life and low efficiency. Used in rural and backup power setups. 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. [caption id="attachment_26213" align="aligncenter" width="300"] Daily Current Affairs 5 June 2025 highlights[/caption] 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.
