Prime Minister Narendra Modi, in his Independence Day address, emphasized self-reliance (aatmanirbharta) across economic and security sectors. He announced major reforms including Mission Sudarshan Chakra for air defence by 2035, Pradhan Mantri Viksit Bharat Rozgar Yojana offering ₹15,000 grants for first-time private sector employees, and the launch of 'Made-in-India' semiconductor chips by 2025. India aims to increase nuclear energy capacity tenfold by 2047. Modi also highlighted the success of Indian-made arms in Operation Sindoor and stressed innovation in AI, cyber security, and deep-tech. A significant part of his speech warned of a "conspiracy to change the country's demographic make-up," leading to the establishment of a High Powered Demographic Mission.
Prime Minister Modi's Independence Day speech focused on national self-reliance, economic reforms, and security enhancements.
Key initiatives announced include Mission Sudarshan Chakra for air defence, Pradhan Mantri Viksit Bharat Rozgar Yojana for employment, and 'Made-in-India' semiconductor chips.
India plans to significantly boost its nuclear energy capacity and emphasized innovation in critical technologies like AI and cybersecurity.
Exam Points
Mission Sudarshan Chakra aims to build an air defence system by 2035.
Pradhan Mantri Viksit Bharat Rozgar Yojana offers a ₹15,000 one-time grant to first-time private sector employees.
India plans to launch 'Made-in-India' semiconductor chips by the end of 2025.
The Centre has proposed significant reforms to the Goods and Services Tax (GST) system, aiming to reduce the number of tax slabs. The 12% and 28% slabs are set to be eliminated, retaining primarily the 5% and 18% rates. A new concessional rate below 1% will be introduced for items like gold and silver, alongside a high "sin rate" of 40% for five to seven specific goods such as tobacco and gutka. This rationalization will move 99% of items from the 12% slab to 5% and 90% from the 28% slab to 18%. The reforms, part of "next-generation GST reforms," are expected to reduce the tax burden on common citizens and boost consumption, though they may initially impact revenue.
The Centre proposes to overhaul the GST structure by eliminating the 12% and 28% tax slabs.
The new structure will primarily retain 5% and 18% slabs, with a sub-1% concessional rate and a 40% "sin rate."
Most items from the abolished 12% and 28% slabs will be moved to the 5% and 18% categories, respectively.
Exam Points
Proposed GST reforms will eliminate the 12% and 28% tax slabs.
The main retained slabs will be 5% and 18%.
A new 40% "sin rate" will apply to 5-7 items like tobacco and gutka.
For the second time since October 2024, the Intergovernmental Negotiating Committee (INC 5.2), comprising about 180 countries, failed to reach a consensus on a legally binding global plastics treaty. The talks, held in Geneva, concluded without reconciling deep differences among nations, primarily concerning whether cutting plastic production should be an integral part of ending plastic pollution. A majority of countries, approximately 80-100, advocated for an "ambitious" treaty with a plastic phase-out plan. Calls were made for toxic-free reuse, refill, repair systems, significant cuts to plastic production, strong chemical controls, and a dedicated article on health, with the European Union leading the push for an ambitious agreement.
Global talks for a legally binding plastics treaty have again ended in a stalemate, failing to reach a consensus.
The primary point of contention was whether plastic production cuts should be central to the treaty.
A majority of participating countries support an "ambitious" treaty that includes a phase-out plan for plastics.
Exam Points
The Intergovernmental Negotiating Committee (INC 5.2) failed to agree on a global plastics treaty.
Approximately 80-100 countries support an "ambitious" treaty with a plastic phase-out plan.
India faces significant trade challenges, particularly with the US imposing 25% tariffs on seafood, potentially rising to 50%. The government is exploring adjustments to the Export Promotion Mission (EPM), a multi-Ministry project with a ₹2,250 crore outlay for FY25, aimed at supporting Micro, Small, and Medium Enterprises (MSMEs) by providing cheaper export credit and overcoming non-trade barriers. Bilateral trade agreement negotiations with the US are deadlocked, prompting a call for India to diversify into other markets and refashion trade ties with neighbours like China. The MSME sector, contributing nearly half of goods exports and employing 28 crore people, requires drastic governmental intervention, with specific demands for credit moratoriums and interest subvention from affected sectors like seafood and textiles.
India is facing trade challenges, including 25% US tariffs on seafood, which could increase to 50%.
The government is considering tweaking the Export Promotion Mission (EPM) to support MSMEs with export credit and address non-trade barriers.
Bilateral trade negotiations with the US are stalled, necessitating a diversification of India's trade markets.
Exam Points
The US imposed 25% tariffs on India's seafood industry.
The Export Promotion Mission (EPM) has an outlay of ₹2,250 crore for FY25.
The MSME sector contributes nearly 45.79% of goods exports and employs over 28 crore people.
India's digital trade compact, Chapter 12 of the India-U.K. Comprehensive Economic and Trade Agreement (CETA), marks a new step in global digital economy engagement. The agreement offers "digital wins" like mutual recognition of electronic signatures, paperless trade, and zero customs duties for electronic transmissions, boosting India's software export pipeline (estimated at $30 billion annually). However, critics raise "digital costs," such as India stepping back from source-code checks as a default regulatory tool. While government procurement is excluded, and a general security exception exists, the compact lacks "automatic MFN" for cross-border data flows, instead relying on a forward review mechanism. The agreement reflects India's shift towards strategic engagement but highlights the need for robust domestic regulatory frameworks like the Digital Personal Data Protection Act of 2023 and regular reviews to align with evolving risks.
The India-U.K. Comprehensive Economic and Trade Agreement (CETA) includes a significant digital trade compact.
Key benefits ("digital wins") include recognition of electronic signatures, paperless trade, and zero customs duties for electronic transmissions, boosting software exports.
Concerns ("digital costs") include India's potential retreat from source-code checks as a default regulatory tool, though case-by-case access is allowed.
Exam Points
The digital trade compact is Chapter 12 of the India-U.K. Comprehensive Economic and Trade Agreement (CETA).
India's software export pipeline is estimated at $30 billion a year.
The Digital Personal Data Protection Act of 2023 is mentioned as a domestic foundation.
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