Prepare for UPSC 15 July 2025 with key current affairs on India’s inflation trends, dowry death laws, corporate investment challenges, and Kaziranga National Park. Essential insights for both Prelims and Mains preparation. Watch Video – Click 1. Retail Inflation 🔹Context & Significance Retail Inflation (measured by CPI) hit a 77-month low of 2.1% in June 2025, mainly due to the eighth consecutive month of declining food inflation. This is the lowest year-on-year inflation since January 2019. Signals easing pressure on household budgets but raises questions about demand weakness in the economy. 🔹Key Inflation Indices in India Consumer Price Index (CPI): Measures price change at the retail level for goods/services used by households. Compiled monthly by National Statistical Office (NSO), Ministry of Statistics & Programme Implementation (MoSPI). Base Year: 2012. RBI’s primary tool for inflation targeting under the monetary policy framework. Wholesale Price Index (WPI): Measures price change at the wholesale level, i.e., between businesses. Published by Office of Economic Adviser, Ministry of Commerce. Base Year: 2011–12. Focuses only on goods, excludes services. Producer Price Index (PPI): Measures price changes from the producer’s viewpoint across production stages. Helps track inflation before goods reach consumers. 🔹Recent Trends (June 2025) CPI (Retail Inflation): 2.1% → A steep fall from 8.4% in June 2024. WPI (Wholesale Inflation): -0.13% → First contraction in 20 months. CPI - Food & Beverages: -0.2% → Led by deflation in vegetables, pulses, spices, and meat. WPI - Food Articles: -3.75% → Indicating food inflation easing across the supply chain. WPI - Crude Petroleum & Natural Gas: -12.3% → 10th consecutive month of contraction, aiding overall inflation reduction. CPI - Fuel & Light: Slightly eased to 2.55%. CPI - Housing: Rose slightly to 3.24% from 3.16%. 🔹Major CPI Types in India CPI (Combined) – Official CPI used by RBI (rural + urban). CPI (Urban) – Tracks inflation for urban households. CPI (Rural) – Covers price changes in rural areas. CPI (IW) – For Industrial Workers, used for wage indexation (Base Year: 2016). CPI (AL) – For Agricultural Labourers (Base Year: 1986–87). CPI (RL) – For Rural Labourers, both agri and non-agri (Base Year: 1986–87). 🔹Types of Inflation Based on Rate Creeping Inflation: 0–3% annually → Stable and manageable. Walking Inflation: 3–7% → Noticeable, may affect savings and growth. Running Inflation: 7–15% → High, threatens purchasing power. Galloping Inflation: 15–50% → Rapid and destabilizing. Hyperinflation: >50% monthly → Rare, economic breakdown (e.g., Zimbabwe, Venezuela). 🔹Causes of Inflation 1. Demand-Pull Inflation (Excess Demand) Post-COVID rebound in consumer demand. Fiscal stimulus programs (India, US during COVID). Low interest rates boosting credit and consumption. Rising wages and purchasing power leading to more spending. 2. Cost-Push Inflation (Supply Constraints) Global fuel price surge (e.g., crude oil at $139/barrel in March 2022). Crop failure and supply shocks (e.g., Tomato price spike in July 2023). Import and raw material disruptions (e.g., 2021 chip shortage impacted electronics). 🔹Inflation Control Measures A. Monetary Measures (by RBI) Increase repo rate to reduce borrowing. Open Market Operations (OMO) to suck out excess liquidity. Cash Reserve Ratio (CRR) hikes. B. Fiscal Measures (by Government) Rationalize subsidies and limit spending. Reform GST structure to reduce tax-related inflation. C. Supply-Side Measures Boost food supply via: Cold chain development. Minimum Support Price (MSP) reforms. Use of Essential Commodities Act (ECA) to prevent hoarding. Import liberalization for pulses, edible oils, etc. D. Trade & Forex Policies Manage currency volatility via RBI’s forex intervention. Regulate exports/imports to ensure domestic supply (e.g., onions, pulses). 🔹Implications of Low Inflation Positive: Improves real income, especially for the poor. Encourages RBI to adopt accommodative stance, aiding economic growth. Negative: May reflect weak consumer demand and slow recovery. Deters private investment if firms expect low returns. 🔹Inflation Targeting – Challenges CPI better suited than WPI as it includes services (e.g., rent, education, health). However, CPI targeting has limits: Does not address supply-side inflation (food, energy). Needs complementary fiscal and trade measures. Regional inflation disparities: As per SBI Report (2025), southern states had higher inflation due to less labor migration, impacting supply-demand dynamics differently across regions. 📝 Prelims-Oriented CPI = Official measure used by RBI; includes services; compiled by NSO. WPI = Wholesale level; excludes services; compiled by Ministry of Commerce. Inflation types = Demand-pull, cost-push, core vs headline. Repo rate, CRR = Monetary tools to control inflation. Essential Commodities Act = Used to prevent hoarding during food inflation. Base Years: CPI (2012), WPI (2011–12), CPI-IW (2016), CPI-AL/RL (1986–87). Watch Video – Click 2. Dowry Deaths in India – The Persistent Curse 🔸 I. Background & Context Dowry deaths are a tragic and persistent form of gender-based violence in India, where newly married women are killed or driven to suicide due to harassment over dowry demands. Despite decades of legal reforms, the practice remains prevalent, underpinned by patriarchal norms, societal pressures, and ineffective enforcement. 🔹 II. Legal Framework ✅ Dowry Prohibition Act, 1961 Enacted to ban the giving or taking of dowry in any form. Dowry is defined as: “any property or valuable security given or agreed to be given either directly or indirectly in connection with the marriage”. ⚖️ Key Provisions & Punishments: Section 3 – Giving/Taking Dowry: Punishment: Minimum 5 years imprisonment + ₹15,000 fine or the value of dowry (whichever is higher). Section 4 – Demanding Dowry: Punishment: 6 months to 2 years imprisonment + fine up to ₹10,000. Section 4A – Advertising Dowry Offers: Punishment: 6 months to 5 years imprisonment + fine up to ₹15,000. ✅ Indian Penal Code (IPC) Section 304B – Dowry Death: Applies when a woman dies under unnatural circumstances within 7 years of marriage, and there is prior evidence of cruelty or dowry-related harassment. Punishment: Minimum 7 years to life imprisonment. Section 498A – Cruelty by Husband or Relatives: Covers physical or mental harassment for dowry or coercion. Punishment: Up to 3 years imprisonment + fine. ✅ Indian Evidence Act (IEA) Section 113B – Presumption of Dowry Death: If a woman dies within 7 years of marriage and had faced cruelty related to dowry, the court presumes the husband or in-laws are responsible, unless proven otherwise. 🔹 III. Important Judicial Precedents Bhoora Singh vs. State (1991): The victim’s letter confirmed the demand for dowry, strengthening prosecution under Section 304B. Ram Gopal Asawa vs. State of MP (2004): Emphasized the need for direct linkage between cruelty and the cause of death to prove guilt under 304B. 🔹 IV. Prelims-Oriented Data & Trends Dowry Deaths per Year: Around 6,500 to 7,000 cases annually (2017–2022). Conviction Rate: Alarmingly low — only ~100 convictions per year out of 6,500+ trials. State-wise Hotspots: High incidence in Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan, Haryana, West Bengal, Odisha, Delhi. 30% of cases in urban zones concentrated in these areas. Common Causes: Greed, societal pressure, patriarchal expectations, bride’s economic status, and failure of enforcement mechanisms. 🔹 V. Mains-Oriented Analysis: Challenges & Way Forward ⚠️ A. Justice System Failures Delayed investigations and sluggish judicial proceedings weaken deterrence. Poor evidence collection and intimidation of witnesses reduce conviction rates. Misuse vs. underuse debate surrounding IPC 498A affects law enforcement morale and effectiveness. 🛠 B. Systemic Fixes Needed Fast-track courts for dowry death cases to ensure time-bound justice. Stringent implementation of Section 304B IPC — shift the burden of proof as per IEA 113B. Creation of victim shelters, financial aid, and legal support centers for vulnerable women. Judicial training to sensitize magistrates and investigators on gender-based violence laws. 🌍 C. Societal Role Gender-sensitive education in schools to break stereotypes from early childhood. Community-level awareness campaigns using local influencers and civil society. Encourage male participation as allies in combating patriarchy (referenced in multiple UPSC PYQs). Marriage registration and pre-marital counseling to inform couples of legal rights and responsibilities. 💡 D. Innovative Tools Data-driven policing to identify dowry death hotspots. AI-enabled grievance monitoring for early intervention. Performance-based incentives to districts showing improvement in women’s safety indicators. Partnerships with women’s rights NGOs for grassroots monitoring and capacity-building. 📌 UPSC Prelims Key Points Recap IPC 304B: Dowry death within 7 years = 7 years to life imprisonment. IEA 113B: Legal presumption in favor of victim. Dowry Prohibition Act Sec 3 & 4: Covers both giver, taker, and demanders of dowry. Low conviction rate highlights enforcement gap, not absence of law. Top states for dowry deaths: UP, Bihar, MP, Rajasthan, Odisha, WB, Haryana, Delhi. 3. Corporate Investment in India: Stagnation Despite Surplus 🔹 I. Current Industrial Scenario Industrial production growth (IIP) slowed to 1.2% in June 2025, marking a 9-month low, signaling sluggish manufacturing and production activity. Corporate profitability remains high post-COVID, but investment in hiring and capacity expansion is stagnant. This divergence between profits and investment reflects structural demand constraints in the Indian economy. 🔹 II. Why Investment Is Not Picking Up 🔸 1. Demand Constraints Dominate Investment is not just driven by profits or low interest rates, but by anticipated consumer demand. If firms observe underutilized capacity, they delay or avoid new investments to avoid surplus and losses. This validates the Keynesian insight: Even cheap credit won’t work if business sentiment is weak. 🔸 2. Reluctance to Borrow Despite RBI’s repo rate cuts (e.g., from 6% to 5.5%) and ample liquidity, private firms are reluctant to borrow in the absence of visible returns. Reflects Keynes’ idea: revival needs both credit availability and investor confidence. 🔸 3. Global and Domestic Headwinds Geopolitical uncertainties, sluggish global demand, and domestic policy unpredictability reduce investment appetite. High private sector debt and past over-investment cycles make corporates cautious. 🔹 III. Theoretical Insights on Investment Behavior Kalecki’s Theory: Investment drives profits, but firms act individually; hence, during downturns, they withhold investment, creating a vicious cycle. Rosa Luxemburg’s View: Sustainable investment is only possible when backed by strong consumption demand. Baranovsky’s View: Investment can, in theory, create its own demand — especially when capital goods industries support each other. However, this rarely works in modern consumption-driven economies. 🔹 IV. Government Measures ✅ 1. Corporate Tax Cuts (2019) Tax rate reduced from 30% to 22% to improve post-tax profits and stimulate private investment. However, this has not resulted in significant capital formation, due to demand and confidence issues. ✅ 2. Public Capital Expenditure (Capex) Push Increased public investment in infrastructure (roads, ports, railways, etc.) to “crowd in” private investment. But results are mixed due to: Gestation lag: Long time to realize returns. Import intensity: Leakages through imports reduce domestic multiplier. Low employment generation: Machine-intensive projects create few jobs. ✅ 3. Monetary Policy Easing Repo rate cuts, CRR reductions, and open market operations to make borrowing cheaper. Yet, credit offtake remains weak in the private industrial sector. 🔹 V. Structural Issues in Current Capex Strategy Time Lags: Infrastructure takes years to complete; short-term demand boost is limited. Import Leakages: Equipment and raw materials are often imported, lowering local value addition. Employment Concerns: Machine-heavy public works do not significantly raise household incomes or stimulate demand. 🔹 VI. Path Forward 🔸 1. Demand-Driven Recovery Emphasize consumption-led growth to create market certainty for firms. Direct cash transfers, rural employment schemes (MGNREGA), and urban social welfare can boost mass demand. 🔸 2. Coordinated Fiscal Action Blend public investment with targeted consumption support to generate private sector confidence. Strategic capex in labour-intensive sectors like housing, food processing, MSMEs. 🔸 3. Trade & Export Strategy Use external demand to absorb domestic overcapacity. Improve global competitiveness through logistics reforms, stable export policies, and tariff rationalization. 🔸 4. Improve Ease of Doing Business Policy stability, contract enforcement, land acquisition clarity, and regulatory simplification are crucial to rebuild investor trust. 🔹 VII. Key Data Highlights (For Prelims and Essay Use) IIP growth (June 2025): 1.2% (lowest in 9 months). Corporate tax: Cut from 30% to 22% in 2019. Repo Rate: Reduced to 5.5% to ease credit. India's effective corporate tax (2019): India: 25.17% – 34.9% OECD avg: 21.4% US: 21% China: 25% Vietnam: 20% Investment as % of GDP: Public investment stagnant. Private corporate investment shows mild improvement but is below historical highs. India vs. China (2023): India: Higher share of private consumption, lower investment-to-GDP ratio. China: Strong investment-driven model, with significant public and private sector capex. 📌 UPSC Prelims Investment relies on expected demand, not just profits or cheap credit. Corporate tax cuts haven't translated into increased private investment. Public Capex, though growing, has limited employment multipliers. Kalecki and Keynesian theories explain why investment lags in demand-constrained economies. IIP and credit flow are key indicators of industrial revival. Watch Video – Click 4. Kaziranga National Park: An Icon of Biodiversity Protection 📌 Prelims-Oriented 🔸 Location Situated in the state of Assam, covering parts of Golaghat, Nagaon, and Sonitpur districts. Lies along the Brahmaputra River floodplains, which create one of the most unique and diverse wetland ecosystems in South Asia. 🔸 Legal Status Declared a National Park in 1972 under the Wildlife Protection Act, 1972. Recognized as a UNESCO World Heritage Site in 1985 (officially designated in 1986) for its exceptional natural diversity. Declared a Tiger Reserve in 2006 under Project Tiger due to high density of tiger population. 🔸 Key Wildlife and Faunal Diversity One-horned Rhinoceros: Home to ~2,615 individuals, which is over 70% of the global population. Most iconic species of the park, heavily protected through anti-poaching strategies. Tigers: Among the highest tiger densities in the world (~32.64 per 100 sq km as per 2021). Wild Water Buffaloes: Hosts 70% of India’s wild buffalo population. Avian Diversity: Habitat for 25 globally threatened bird species. Recent (March–May) bird survey recorded 43 grassland bird species including: Bengal Florican (Critically Endangered), Finn’s Weaver, Black-breasted Parrotbill, etc. 🔸 Habitat & Ecosystem Represents the largest intact stretch of Brahmaputra floodplain grasslands. Includes diverse biomes: alluvial floodplains, tall elephant grass, marshlands, tropical moist forests, and wetlands. Serves as a migratory route and breeding ground for numerous wetland and riverine species. 🔸 Technological Advancements Use of passive acoustic sensors for non-invasive wildlife monitoring. Helps monitor cryptic and vocal species such as birds and amphibians without disturbing them. 🔸 Other National Parks in Assam Manas National Park (also a World Heritage Site). Nameri National Park. Orang National Park. Dibru-Saikhowa National Park. Dehing Patkai National Park. Raimona National Park (Assam’s 7th and newest national park as of 2021). 📚 Mains-Oriented Analysis: 🌿 I. Ecological Significance Wetland biodiversity hotspot within the Eastern Himalayan biodiversity zone. A key part of the Brahmaputra riverine system, supporting numerous endangered species. Functions as an ecological corridor for large mammals such as elephants and tigers. Maintains hydrological balance in the region by acting as a natural flood buffer. Contributes to nutrient cycling, carbon sequestration, and soil regeneration. ⚠️ II. Major Challenges to Conservation Annual Flooding: Brahmaputra’s monsoon-induced floods submerge large park areas. While essential for grassland regeneration, excessive floods displace or kill animals, particularly young ones. Habitat Fragmentation: Encroachments, expansion of tea gardens, and linear infrastructure (roads, railways) divide animal corridors. Creates island ecosystems, limiting species movement and genetic diversity. Poaching and Illegal Wildlife Trade: Rhinoceros horns, despite international bans, are targeted due to high black-market value. Sophisticated poaching networks persist despite strong security measures. Human-Wildlife Conflict: Animal movements outside park boundaries (especially during floods) lead to crop damage, livestock killing, and retaliatory violence. Tourism Pressure: While eco-tourism supports conservation, unregulated or mass tourism can damage fragile ecosystems. 🛠️ III. Innovative and Sustainable Conservation Strategies Technology-Driven Monitoring: Use of passive acoustic sensors and drone surveillance enhances wildlife tracking and poaching prevention. Camera traps help monitor tiger movements and population estimates. Community-Based Conservation: Engagement of local communities in eco-tourism provides alternative livelihoods. Initiatives like Eco-Development Committees (EDCs) promote stewardship among fringe populations. Anti-Poaching Infrastructure: Deployment of armed forest guards, modern equipment, and night-vision technology. Rapid Response Teams (RRTs) during floods and conflict situations. Transboundary and Corridor Protection: Integration with Kaziranga-Karbi Anglong Elephant Corridor. Coordination with neighboring protected areas to ensure animal movement. 🌏 IV. Role in India’s Environmental and Wildlife Protection Narrative Kaziranga exemplifies India’s post-independence wildlife conservation success. A model for balancing species protection with community livelihoods. Contributes to global commitments such as: Convention on Biological Diversity (CBD), Ramsar Convention (although Kaziranga is not a Ramsar site), UN Sustainable Development Goals (SDG-15: Life on Land). 📝 UPSC Prelims Quick Revision Points State: Assam. Declared NP: 1972. Tiger Reserve: 2006. UNESCO World Heritage Site: 1985 (listed in 1986). Fauna Highlights: One-horned Rhino: ~2,615 (70% global population). Tigers: High density (32.64/100 sq. km). Wild Water Buffalo: 70% of Indian population. 25 globally threatened bird species. Technology: Passive acoustic sensors, camera traps. Ecosystem: Brahmaputra floodplain grasslands. Nearby NPs: Manas, Nameri, Orang, Dibru-Saikhowa, Dehing Patkai, Raimona. Watch Video – Click
