Prime Minister Narendra Modi and Chinese President Xi Jinping met on the sidelines of the SCO summit in Tianjin, marking a significant step toward normalizing relations after a four-year standoff. Both leaders emphasized that border issues should not define the overall bilateral relationship and expressed commitment to a fair, reasonable, and mutually acceptable resolution. Modi highlighted that both nations are victims of terrorism and called for mutual support in combating this scourge, specifically mentioning cross-border terrorism. The discussions also covered reducing trade deficits, enhancing people-to-people ties through direct flights, and the resumption of the Kailash Mansarovar Yatra.
The meeting took place during the Shanghai Cooperation Organisation (SCO) summit in Tianjin, China.
Both leaders agreed to expand common ground on bilateral, regional, and global issues like fair trade and strategic autonomy.
India emphasized the importance of peace and tranquility on the border for the continued development of bilateral relations.
Exam Points
Venue: SCO summit in Tianjin, China.
Foreign Secretary: Vikram Misri.
Upcoming Event: India is set to host the BRICS summit in 2026.
Prime Minister Modi visited Japan for the 15th Annual Summit with PM Shigeru Ishiba, focusing on a 'Next-Gen' partnership. The two nations updated their 2008 Security Partnership to include annual NSA-level dialogues and increased engagement over the Quad and Indo-Pacific cooperation. A pivotal Economic Security Partnership was established to build resilient supply chains and secure critical infrastructure, particularly in semiconductor technology. This move aims to mitigate risks from Chinese restrictions on rare earth magnets. The leaders also reviewed the High-Speed Rail project and issued a joint statement condemning North Korea's nuclear programme and cross-border terrorism.
The 15th Annual Summit resulted in a 2035 Vision Statement covering eight areas of cooperation including green technology.
Security cooperation was expanded to include UN Security Council reform and deeper Quad engagement.
A new goal was set to use Japanese technology for manufacturing and processing semiconductor technology in India.
India's economy continues its strong trajectory, with real GDP growing at 7.8% in Q1 FY 2025-26. The nation has ascended from the 10th to the 5th largest economy globally, driven by manufacturing, services, and digital public infrastructure. Significant progress in social welfare is noted, with 24.82 crore people moving out of multidimensional poverty. In the energy sector, India is expanding its refining capacity and accelerating ethanol blending, which has reached 15%. The government aims to cover 1 million square kilometers for sedimentary basin exploration by 2030 to ensure long-term energy security and reduce import dependence.
India is currently the world's 5th largest economy and is projected to become the 3rd largest by 2030.
Real GDP growth of 7.8% in Q1 FY 2025-26 reflects strong domestic consumption and investment.
The Jan Dhan-Aadhaar-Mobile (JAM) trinity and UPI have been instrumental in formalizing the economy.
Exam Points
GDP Growth: 7.8% in Q1 FY 2025-26.
Poverty Reduction: 24.82 crore people moved out of multidimensional poverty (2013-14 to 2022-23).
The Union Government has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) to address the dual challenge of youth employability and enterprise competitiveness. With an outlay of ₹1 lakh crore, the scheme aims to create 3.5 crore jobs over two years. It provides direct financial incentives to first-time employees (up to ₹15,000) and employers (up to ₹3,000 per month). This initiative focuses on formalizing the workforce by ensuring new workers are linked to social security systems from their first day of employment, supporting the broader 'Viksit Bharat 2047' vision.
PMVBRY offers direct benefit transfers to first-time employees to encourage formal sector participation.
The scheme reduces entry barriers for workers while lowering hiring risks for businesses through government subsidies.
Social security coverage in India has surged from 19% in 2015 to 64.3% in 2025, reaching 94 crore beneficiaries.
Exam Points
Scheme Outlay: ₹1 lakh crore.
Incentives: Up to ₹15,000 for employees; ₹3,000/month for employers.
Demographic Fact: 65% of India's population is under 35 years of age.
The Department of Revenue and CBDT have completed a comprehensive review to simplify the 'mammoth' Income Tax Act, 1961. The resulting Income Tax Act, 2025, aims to make the law more lucid, concise, and user-friendly. The drafting process involved 26 subcommittees and 75,000 man-hours. Key changes include reducing the number of chapters from 47 to 23 and sections from 819 to 536. The new Act removes redundant sections, simplifies complex jargon, and introduces 57 tables for clearer explanations. It is scheduled to come into effect on April 1, 2026, following its passage in Parliament.
The new Income Tax Act, 2025, replaces the 64-year-old 1961 Act to reduce litigation and improve compliance.
The number of sections has been significantly condensed from 819 to 536.
The drafting committee utilized 26 subcommittees to review every aspect of the law for redundancy.
A new study utilizing coral microatolls as natural tide gauges reveals that sea levels in the Indian Ocean are rising faster than previously believed. Research in the Maldives and Lakshadweep shows a total rise of 30-40 cm over the last 60 years, with acceleration starting in the late 1950s. The current rate of 3.3 mm/year exceeds the global average. This warming trend impacts ocean dynamics and increases the frequency of coral bleaching. The study emphasizes that microatolls provide critical historical data for regions lacking long-term tide gauge records, essential for developing effective climate adaptation strategies.
Coral microatolls are disk-shaped colonies that record sea-level changes through their unique upward growth limits.
The Indian Ocean is experiencing above-average warming, leading to intensified coral bleaching episodes.
Sea levels around the Maldives and Lakshadweep have risen significantly faster than the global average rate.
Exam Points
Rise Rate: 3.3 mm/year in the Indian Ocean.
Study Locations: Huvadhoo Atoll (Maldives) and Lakshadweep.
Historical Data: Sea-level rise acceleration identified as starting in the late 1950s.
The Supreme Court is currently examining the issue of restoring statehood to Jammu and Kashmir, highlighting the importance of India's federal design. Under Article 1, India is a 'Union of States,' a unique system combining federal and unitary features. While Article 3 allows Parliament to reorganize states, federalism is recognized as part of the 'Basic Structure' of the Constitution. The article argues that without a robust federal design, the Rajya Sabha's permanent status under Article 83(1) would lose its purpose. The restoration of statehood is seen as essential to protecting the constitutional rights of citizens and maintaining the Union's integrity.
The Supreme Court has sought a detailed response from the Centre regarding the timeline for J&K's statehood.
Article 1 defines India as an indestructible union of destructible states, emphasizing 'Union' over 'Federation'.
Federalism is a part of the Basic Structure of the Constitution, meaning it cannot be abridged by Parliament.