Retail inflation in India eased to a 77-month low of 2.1% in June, down from 2.82% in May, primarily driven by falling food prices for the eighth consecutive month. Wholesale inflation also contracted after 20 months, with crude oil prices further contributing to the decline. The Consumer Price Index (CPI) showed the food and beverages category contracted by 0.2% in June, a significant drop from 8.4% in June 2024. Key items like vegetables, pulses, spices, and meat experienced deflation. This trend is expected to continue, supported by healthy agricultural activity and a favourable base.
Retail inflation reached a 77-month low of 2.1% in June, primarily due to easing food prices.
Wholesale Price Index (WPI) also contracted after 20 months, influenced by falling food and crude oil prices.
The food and beverages category within CPI saw a contraction of 0.2% in June, marking the eighth consecutive month of easing food inflation.
Exam Points
Retail inflation (CPI) in June: 2.1% (77-month low).
Wholesale Price Index (WPI) in June: -0.13%.
CPI food and beverages category contraction in June: 0.2%.
External Affairs Minister S. Jaishankar met with Chinese Foreign Minister Wang Yi in Beijing, emphasizing the need for India and China to move forward on de-escalation at the Line of Actual Control (LAC). He highlighted that disengagement achieved nine months ago has not been followed by troop withdrawal. Jaishankar called for normalizing people-to-people ties, avoiding restrictive trade measures, and addressing terrorism with "zero tolerance" through the Shanghai Cooperation Organisation (SCO). Both sides agreed to resume direct flight connectivity and India hopes China will restart sharing hydrological data on trans-border rivers.
EAM Jaishankar stressed the need for de-escalation and troop withdrawal at the LAC for normalisation of India-China ties.
He called for normalising people-to-people ties and avoiding restrictive trade measures, referencing Chinese export restrictions on critical minerals.
Jaishankar urged the Shanghai Cooperation Organisation (SCO) to address terrorism with "zero tolerance."
The Supreme Court indicated to the Centre that it may not be able to prevent Kerala from withdrawing its petitions against the Governor's delay in clearing crucial Bills. Kerala's counsel argued that an April 8 judgment, which prescribed a three-month deadline for the President and Governors to act on State Bills, has made their pleas infructuous. The Centre, however, opposed the withdrawal, stating that the April 8 judgment is subject to a pending Presidential Reference, which a Constitution Bench should hear to authoritatively settle the law on the apex court's power to impose timelines under Article 142.
The Supreme Court suggested Kerala is entitled to withdraw its petitions against the Governor for delaying Bills.
Kerala cited an April 8 judgment setting a three-month deadline for Governors and President to act on State Bills.
The Centre opposed withdrawal, arguing the April 8 judgment is under Presidential Reference to a Constitution Bench.
Exam Points
Supreme Court Bench headed by Justice P.S. Narasimha.
Article 200 and 201 of the Constitution (related to Governor/President assent to Bills).
Article 142 of the Constitution (Supreme Court's inherent powers).
Canada is seeking new economic partners after the U.S. imposed a 35% tariff on Canadian imports, despite Ottawa rescinding a digital services tax. This move by the U.S., driven by a trade surplus in Canada's favour, has forced Canada to diversify its foreign and economic policy, similar to how Nepal recalibrated its strategy after India closed land ports a decade ago. Nepal's reliance on Indian ports and subsequent economic collapse led it to join China's Belt and Road Initiative, much to India's dismay. The article suggests the U.S. should learn from this history, as losing a close ally like Canada over trade imbalances could have significant repercussions.
The U.S. imposed a 35% tariff on Canadian imports, despite Canada rescinding its digital services tax.
This U.S. action, driven by a trade surplus in Canada's favor, has prompted Canada to seek new economic partners.
The situation is compared to India's blockade of Nepal a decade ago, which forced Nepal to align with China.
The article argues for a stronger India-Europe relationship, rooted in shared values and strategic compulsions, to foster a multipolar, stable, and equitable world amidst global disorder. Both India and Europe, as aspirational middle powers, are expanding dialogue in trade, technology, security, and climate change. Economic ties are growing, with EU FDI in India increasing by 70% between 2015-2022. The article emphasizes fast-tracking trade agreements, reinterpreting the Carbon Border Adjustment Mechanism, and leveraging the India-Middle East-Europe Economic Corridor (IMEC). It also highlights cooperation in digital architecture, clean energy, biotechnology, and defense, stressing the need for human mobility and political will to address issues like terrorism.
India and Europe are urged to strengthen their partnership as aspirational middle powers to promote a multipolar world order.
Bilateral engagement is expanding across trade, technology, security, and climate change, with significant growth in EU FDI in India.
Fast-tracking India-EU Trade and Investment Agreements and reinterpreting the Carbon Border Adjustment Mechanism are crucial.
Exam Points
EU foreign direct investment in India grew by 70% between 2015 and 2022.
India faces a paradox where 43% of STEM graduates are women, the highest globally, yet women constitute only 27% of the STEM workforce. This education-employment gap, driven by persistent social norms and unwelcoming workplaces, limits women's access to career opportunities. The article highlights that enabling more women in the workforce could significantly boost India's GDP. Government policies like NEP 2020 and increased gender budget allocation aim to improve women's economic mobility. However, industry must transition from passive recruiters to active enablers, addressing stereotypes and providing supportive environments, as exemplified by initiatives like UN Women's WeSTEM programme.
India has the highest proportion of women STEM graduates globally (43%), but only 27% are in the STEM workforce.
This significant education-employment gap is attributed to social norms, workplace environments, and lack of awareness about career opportunities.
Increasing women's participation in the workforce could substantially boost India's GDP, with estimates up to $700 billion by 2025.
Exam Points
43% of India's STEM graduates are women.
27% of India's STEM workforce are women.
Periodic Labour Force Survey (PLFS) 2023-24: India's overall female labour force participation rate (FLFPR) rose to 41.7%.
Dowry-related deaths remain a persistent issue in India, with an average of 7,000 cases reported annually between 2017-2022. However, investigations are often slow, with 67% of cases pending investigation for over six months by the end of 2022, and 70% of charge-sheets filed after more than two months. Conviction rates are alarmingly low, with only about 100 convictions out of 6,500 cases sent for trial each year, while over 90% remain pending or result in acquittals due to lack of evidence or other reasons. West Bengal, Odisha, and Bihar accounted for over 60% of these murders, with Delhi having the highest city-wise share of cases.
India reports an average of 7,000 dowry death cases annually, but this is considered a conservative estimate due to underreporting.
Investigations are significantly delayed, with a majority of cases stuck for over six months and charge-sheets filed after prolonged periods.
Conviction rates for dowry deaths are extremely low, with only about 100 convictions out of 6,500 cases tried annually.
Exam Points
Average 7,000 dowry death cases reported annually (2017-2022).
67% of dowry death cases pending investigation for over six months (end of 2022).
70% of charge-sheets filed after more than two months (2022).
The Union government approved the transfers and appointments of Chief Justices and judges across several High Courts, following recommendations by the Supreme Court Collegium. Key appointments include Justice K.R. Shriram as Chief Justice of Madras High Court (transferred from Rajasthan) and Justice Manindra Mohan Shrivastava as Chief Justice of Rajasthan High Court (transferred from Madras). New Chief Justices were also appointed for Jharkhand, Tripura, Telangana, Madhya Pradesh, Karnataka, Gauhati, and Patna High Courts. These decisions were made by the President in consultation with the Chief Justice of India, exercising powers conferred by the Constitution.
The Union government approved transfers and appointments of Chief Justices and judges for various High Courts.
These decisions were based on recommendations from the Supreme Court Collegium, headed by Chief Justice of India B.R. Gavai.
Notable transfers include Chief Justice K.R. Shriram to Madras HC and Justice Manindra Mohan Shrivastava to Rajasthan HC.
Exam Points
Supreme Court Collegium headed by Chief Justice of India B.R. Gavai.
Chief Justice of Madras High Court: K.R. Shriram (transferred from Rajasthan).
Chief Justice of Rajasthan High Court: Manindra Mohan Shrivastava (transferred from Madras).
Nearly four years after its introduction, the Centre has discovered widespread manipulation of the National Mobile Monitoring System (NMMS) for MGNREGS digital attendance, undermining its credibility and leading to potential misuse of public funds. Issues identified include uploading irrelevant photos, "photo-to-photo capturing" instead of live images, mismatches in actual vs. recorded counts, and discrepancies in gender composition and morning/afternoon photos. To plug these gaps, the Ministry of Rural Development has added four layers of analog monitoring and directed states to ensure 100% verification at gram panchayat level, with reduced percentages at block, district, and state levels.
The National Mobile Monitoring System (NMMS) for MGNREGS digital attendance is being widely manipulated, leading to misuse of public funds.
Identified issues include uploading irrelevant photos, "photo-to-photo capturing," and mismatches in worker counts and photos.
The NMMS requires geo-tagged photographs of workers twice a day, with an exception for sites with 20 or fewer workers.
Exam Points
National Mobile Monitoring System (NMMS).
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
Indian astronaut Group Captain Shubhanshu Shukla and his Axiom Mission 4 (Ax-4) crew departed from the International Space Station (ISS) after 18 days, completing seven microgravity experiments. The Dragon spacecraft is expected to splash down off the California coast. Meanwhile, the Indian Institute of Space Science and Technology (IIST) is preparing for post-flight field studies on crop seeds (Jyothi and Uma rice, horse gram, tomato, sesame, brinjal) that were sent to the ISS under the "Crop Seeds on ISS" project. These seeds will be grown to assess the unique effects of microgravity on growth and yield, with comparative studies planned.
Indian astronaut Group Captain Shubhanshu Shukla and the Ax-4 crew returned to Earth after 18 days on the International Space Station (ISS).
Shukla completed seven microgravity experiments during his mission.
The Dragon spacecraft is scheduled to splash down in the Pacific Ocean off California.
Exam Points
Indian astronaut: Group Captain Shubhanshu Shukla.
Australia is hosting its largest-ever war-fighting drills, Exercise Talisman Sabre, involving over 35,000 military personnel from 19 nations, including India. The three-week exercise, which includes live-fire missile launches from HIMARS, is expected to draw scrutiny from Chinese spy ships, which have monitored previous drills. For the first time, activities will also take place in Papua New Guinea, Australia's nearest neighbor. The exercise, biennial since 2005, aims to strengthen military cooperation among participating countries.
Australia is conducting its largest-ever war-fighting drills, Exercise Talisman Sabre, with 19 participating nations.
Over 35,000 military personnel, including from India, are taking part in the three-week exercise.
The drills involve live-fire exercises, including missile launches from M142 High Mobility Artillery Rocket System (HIMARS).
Exam Points
Exercise name: Talisman Sabre 2025.
Number of participating nations: 19 (including India, U.S., Japan, UK).
Location: Shoalwater Bay Training Area, Queensland, Australia, and Papua New Guinea.
India's industrial production and corporate investment are struggling, with the Index of Industrial Production (IIP) slowing to a nine-month low of 1.2%. Despite government efforts like corporate tax cuts, increased capital expenditure, and interest rate reductions, private sector Gross Fixed Capital Formation (GFCF) in machinery and equipment has grown only 35% in four years. The article argues that investment primarily depends on demand for goods, not just profitability or finance. It highlights that in a capitalist economy, individual firms invest based on perceived demand, and collective investment to revive a slowdown is anathema to capitalism. Exogenous stimuli, particularly government expenditure, are crucial to kickstart demand and the investment cycle.
India's industrial production and corporate investment are lagging, with IIP at a nine-month low of 1.2%.
Despite government incentives like corporate tax cuts and increased capital expenditure, private sector GFCF remains low.
The article posits that investment is primarily driven by demand for goods, not merely by profitability or access to finance.
Exam Points
Index of Industrial Production (IIP) in June: 1.2% (nine-month low).
Corporate tax cut in September 2019: from 30% to 22%.
Private sector GFCF in machinery and equipment: 35% growth in four years to FY23.
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