Daily Current Affairs 2nd July 2025 – South Asia Geopolitics, PLI Scheme, Heatwaves & More for UPSC

Get the most important Daily Current Affairs for 2nd July 2025 covering South Asia’s strategic triangle (India–US–Pakistan), the expansion of the PLI Scheme, urban heatwave trends, and breakthroughs in women empowerment through tech. Curated for UPSC Prelims and Mains 2025, this analysis brings institutional insights, factual depth, and exam-ready summaries to boost your preparation.

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1. A Triangular Dynamic in South Asia’s Power Politics

What’s the News?

South Asia is witnessing a strategic power play among India, China, and the United States, as nations like Maldives, Sri Lanka, and Bangladesh are becoming geopolitical pivot points in this triangular contest.

Why It Matters for UPSC (Prelims & Mains):

• India’s “Neighbourhood First” policy is facing pressure due to growing Chinese investments and American strategic interests.

• Maldives’ recent decision to remove Indian military presence highlights fragile regional ties.

• Sri Lanka continues balancing Chinese loans and India’s security sensitivities.

Recent Developments & Global Context:

• China’s BRI (Belt and Road Initiative) is deeply embedded in Sri Lanka and Bangladesh, funding ports, highways, and power plants.

• The U.S. Indo-Pacific strategy emphasizes a “Free and Open Indo-Pacific”, indirectly countering China’s assertiveness.

• India is pushing back through QUAD, BIMSTEC, and renewed regional diplomacy with countries like Nepal, Bhutan, and Maldives.

Relevant Treaties and Frameworks:

• UNCLOS (United Nations Convention on the Law of the Sea) – vital in South China Sea disputes.

• SAARC & ASEAN Regional Forum – critical for regional cooperation and crisis diplomacy.

Implications for India and the World:

• India’s strategic influence in the Indian Ocean Region is challenged by China’s cheque-book diplomacy.

• Need to enhance ties through infrastructure, trade, and cultural outreach with neighbors.

• A stable and friendly neighborhood is crucial for India’s rise as a regional and global power.

2. Costly Lapses: Infrastructure Failures in India

What’s the News?

Several recent incidents, including the Balasore train accident and bridge collapses in Bihar and Gujarat, have drawn national attention to critical gaps in India’s infrastructure safety and maintenance systems.

Key Points for UPSC:

• Balasore train tragedy (2023) – over 280 lives lost; blamed on signal failure and lack of safety audits.

• CAG reports point to underutilization of safety funds and non-compliance with audit mechanisms in Indian Railways.

• India’s infrastructure projects often suffer from poor maintenance, delayed upgrades, and weak enforcement of safety norms.

Comparative Global Context:

• Japan’s Shinkansen rail system has had zero passenger deaths since 1964 – due to strong regulatory enforcement.

• European countries implement mandatory periodic audits for all bridges, tunnels, and tracks.

Relevant Codes and Guidelines:

• National Building Code of India

• Railway Safety Manual

• PM Gati Shakti Plan aims to integrate infrastructure development but requires effective monitoring.

Implications for India:

• Poor infrastructure safety affects public trust, investor confidence, and the nation’s global image.

• Boosting safety audits, implementing AI-based monitoring systems, and independent regulation is the need of the hour.

• Aligns with SDG 9 – resilient infrastructure and sustainable development.

3. Reserved Faculty Posts Are Still Vacant and Out of Reach

What’s the News?

A significant number of reserved teaching positions (SC/ST/OBC/EWS) in Central Universities remain vacant, raising concerns over inclusivity in higher education.

Important Points for UPSC:

• As per Ministry of Education data, nearly 40-45% of faculty posts reserved for marginalized communities are unfilled.

• Reasons cited: shortage of “qualified” applicants, procedural lapses, and reluctance by universities to fill these posts.

Relevant Policies & Constitutional Provisions:

• Article 15(4) & 16(4) – Special provisions for advancement of SCs, STs, and socially/economically backward groups.

• University Grants Commission (UGC) Guidelines mandate compliance with reservation norms in faculty hiring.

• 103rd Constitutional Amendment – provides 10% EWS reservation in educational institutions.

Current Trends & Government Initiatives:

• NEP 2020 emphasizes equity and access, especially for underrepresented groups.

• Mission NET/SET Coaching and Research Fellowships launched to improve qualification pipeline for SC/ST/OBC.

Implications for India:

• Failure to fill reserved seats denies representation and role models to disadvantaged students.

• It also contradicts constitutional mandates and hinders efforts to create an inclusive academic environment.

• Strengthening faculty diversity will improve both education quality and social equity.

4. Demand Distress in the Indian Economy

What’s the News?

Despite macroeconomic stability and positive GDP figures, rural consumption and demand remain subdued, exposing underlying economic vulnerabilities.

Key Points for UPSC:

• NielsenIQ Report (2024): FMCG rural sales dropped by 3.2% YoY.

• High MNREGA demand indicates distress employment in villages.

• Slow growth in tractor and two-wheeler sales—strong indicators of rural stagnation.

Global & Domestic Trends:

• Persistent rural inflation coupled with reduced purchasing power.

• Unseasonal rains and climate variability impacting rural livelihoods.

• Urban-rural consumption gap widening post-COVID.

Relevant Schemes & Reports:

• PM-KISAN, e-NAM, PMGSY, Aatmanirbhar Bharat Abhiyan target rural revival.

• NABARD’s Rural Pulse Reports and RBI bulletins provide frequent data on demand trends.

Implications for India:

• Weak rural demand could undermine India’s consumption-driven growth model.

• Risk of rising income inequality and jobless growth.

• Greater emphasis needed on direct benefit transfers, skilling, and infrastructure in rural areas.

5. Bengaluru and Mumbai See More Above-Average Heat Days Than Delhi

What’s the News?

New data from the India Meteorological Department (IMD) reveals that coastal and plateau cities like Mumbai and Bengaluru are now recording more days of abnormal heat compared to Delhi.

Important Points:

• Bengaluru: 21 heatwave days, Delhi: 15 days (May 2025).

• Rise linked to Urban Heat Island (UHI) effect and rapid urbanization.

• Green cover loss, high-rise development, and vehicle emissions cited as contributors.

Scientific & Global Context:

• IPCC Report 2023 predicts frequent heat events in South Asia.

• Heat waves now impacting traditionally cooler cities, a reversal of past climate patterns.

Policies & Conventions:

• National Action Plan on Climate Change (NAPCC) – Mission on Sustainable Habitat.

• Paris Agreement 2015 – India’s target of reducing emissions intensity by 45% by 2030.

Implications for India:

• Higher demand on urban healthcare, water, and energy infrastructure.

• Need for updated Heat Action Plans beyond northern India.

• Cities must integrate climate-resilient planning into Smart Cities Missions.

6. Using Tech to Empower Women and Children

What’s the News?

India is increasingly leveraging technology for welfare delivery and social empowerment of women and children, including tracking nutrition, safety, and employment.

Key Points:

• Poshan Tracker App – monitors real-time nutrition data of women and children.

• e-Shram Portal – offers digital identity and welfare access to unorganised workers.

• Sakhi One-Stop Centres, Childline (1098), and Women Helpline (181) now getting tech integration with 112.

Current Trends:

          AI & ML being used to predict child trafficking patterns.

• Blockchain pilots for nutritional data protection in pilot states.

Relevant Conventions:

• UNCRC – United Nations Convention on Rights of the Child.

• CEDAW – Convention on Elimination of All Forms of Discrimination Against Women.

Implications for India:

• Tech bridges the last-mile gap in delivery of rights and entitlements.

• However, digital exclusion of poor and rural women still remains a barrier.

• Emphasizes the need for inclusive digital literacy programs.

7. Railways Launches RailOne App to Ease Ticket Booking and Services

What’s the News?

The Ministry of Railways launched RailOne, a unified platform for Indian railway passengers combining ticketing, food booking, PNR status, and grievance redressal.

Key Features:

• Integrates IRCTC services, UPI payment, and AI-based recommendations.

• Unified dashboard for booking tickets, cabs, catering, checking train running status.

Digital India Push:

• Part of One Nation One Platform under the Digital India Mission.

• Reduces dependency on multiple apps and portals, making travel smarter and seamless.

Relevant Policies:

• National Rail Plan 2030 – digital transformation is a core component.

• PM Gati Shakti – logistics and multimodal transport vision.

Implications for India:

• Enhances user convenience and transparency.

• Expected to increase adoption of online ticketing among older and rural users.

• Supports government’s push towards paperless and contactless travel.

8.South Asia’s Power Politics: The Triangular Game Between 🇮🇳 India, 🇺🇸 USA & 🇵🇰 Pakistan

 What’s the News?

The United States is recalibrating its foreign policy in South Asia, creating a complex power triangle involving India and Pakistan. The recent U.S. engagement with Pakistan’s military has sparked strategic concerns for India.

 Key Points for UPSC 

• Historical Ties:

  • Pre-1947: Limited interaction

  • Post-Independence: Cold War tensions, food aid, 1991 Gulf War cooperation

  • Frictions: 1965 & 1971 wars, India’s nuclear tests

• Modern Era:

  • 2005: Strategic Partnership

  • 2020: Comprehensive Global Strategic Partnership

  • Current: Divergence on defense & diplomacy despite collaboration

 Recent Global Context

• Trump Factor: Meeting with Pakistan Army Chief Gen. Asim Munir signals revival of Cold War-style diplomacy.

• U.S.-Pakistan Ties:

  • Despite terror-related concerns, U.S. extends $397 million aid.

  • Pakistan’s geographical advantage makes it a “necessary contradiction.”

• India’s Reaction:

  • Operation Sindoor: India’s assertive military response.

  • Strong stand on non-interference and sovereignty.

 Institutional References:

• Ministry of External Affairs, India

• Carnegie India & Brookings India analysis on triangular diplomacy

• CSIS Report on U.S. South Asia engagement (2024)

 Why It Matters:

• U.S. risks re-hyphenating India-Pakistan policy.

• Undermines the Indo-Pacific strategy led by India-U.S.-Japan.

 Way Forward:

• Focus on multi-alignment: QUAD, I2U2, EU partnerships.

• Boost indigenous capabilities in AI, defense tech (DRDO + Start-ups).

• Maintain strategic autonomy, especially in Eurasian affairs.

9.Using Technology to Empower Women: A Digital Path to Equality

 What’s the News?

The integration of technology is fast emerging as a transformative force for empowering women in India—socially, economically, and politically.

 Key Points for UPSC 

• Access to digital platforms enhances:

  • Legal support (SHe-Box)

  • Healthcare access (Poshan Tracker)

  • Financial inclusion (Jan Dhan-Aadhaar-Mobile)

  • Safety apps for women commuters

 Reference Initiatives:

• SHe-Box Portal: Lodging complaints on workplace harassment (Ministry of Women & Child Development)

• Poshan Tracker: Monitoring ICDS service delivery

• Mission Shakti: Safety, support & empowerment of women

 Global Context:

• UN Women’s Equality in Tech: Pushes for digital equity

• Global examples like Rwanda’s e-Justice for women offer models

 Way Forward:

• Promote STEM education for girls

• Expand digital literacy in rural areas

• Encourage women-led startups in AI, coding, and data science

10 .Employment Linked Incentive Scheme: Fueling India’s Manufacturing Dreams

What’s the News?

The Government of India has expanded its PLI (Productivity-Linked Incentive) scheme to generate formal employment and boost domestic manufacturing.

Key Points for UPSC

• Encourages sectors like:

  • Electronics, pharma, auto, textiles

• Rewards companies for job creation + export performance

• Boosts MSMEs through formalisation and productivity gains

Institutional Reference:

• Ministry of Commerce & Industry

• Economic Survey 2023-24 highlighted early success in electronics sector

• NITI Aayog: Employment elasticity improvement due to PLI

Implications:

• Reduces import dependence

• Positions India as a global manufacturing hub

• 

  Aligns with Make in India and Atmanirbhar Bharat

Way Forward:

• Combine with Skill India for better-trained workers

• Transparent, real-time tracking of employment outcomes

 

• Green and inclusive manufacturing incentives