NATIONAL AFFAIRS
- EC cracks down on 345 dormant Registered Unrecognised Political Parties (RUPPs) to tighten electoral transparency and curb tax misuse.
- Special Intensive Revision (SIR) of Bihar’s electoral rolls launched to verify citizenship and remove bogus voters.
- South Asia’s International Potato Centre to be set up in Agra to strengthen potato yield, seed security, and farmer income.
- Department of Official Language celebrates its golden jubilee; Hindi in Devanagari script reaffirmed as the Union’s official language.
- 10 years of AMRUT Mission celebrated — urban reforms expanded to all ULBs with a focus on water supply, sewerage, and GIS-based master plans.
- GIFT City IFSC reviewed to boost India’s global financial services footprint under unified regulation.
- Green Data Centre to come up in Ghaziabad, Uttar Pradesh, aiming for energy-efficient, low-emission digital infrastructure.
- NDA government completes one year of its third term, highlighting a policy push on jobs, infrastructure, and welfare.
- Centre steps up efforts for uniform civil code discussions amid divergent state views.
- Supreme Court flags concerns over misuse of anti-defection law to topple elected governments.
- Delhi faces a severe water crisis as Yamuna levels drop, sparking inter-state water disputes.
- Maharashtra sees fresh political churn over Maratha reservation demands.
- Supreme Court stays Patna High Court order cancelling EBC quota for local body polls in Bihar.
INTERNATIONAL RELATIONS
- India commits to universal birth & death registration by 2030 at the Bangkok Conference on Civil Registration and Vital Statistics (CRVS).
- PM visits Cyprus after 23 years, reviving ties amid changing Europe–Asia geopolitics.
- India refuses to sign the SCO Defence Ministers’ joint declaration to protect national interests amid the China–Pakistan nexus.
- Kailash Mansarovar Yatra resumes after six years, restoring India–China people-to-people contacts post-pandemic.
- US pulls funding from Gavi, adding to trend of retreat from multilateral bodies, threatening global health cooperation.
- UN80 Initiative launched to commemorate 80 years of the UN Charter, aiming to reform and future-proof the organisation.
- India calls for UN reforms, reiterating demand for permanent UNSC seat for equitable global governance.
- Sri Lanka seeks India’s help to ease the debt crisis, strengthening bilateral economic ties.
- G7 summit debates China’s growing global investments and impact on Global South economies.
ECONOMY & INFRASTRUCTURE
- SEBI clears framework for social stock exchanges to mobilise funds for non-profits.
- Cabinet clears major FDI policy tweaks to boost high-tech and green sector investments.
- Sagarmala Finance Corporation Limited (SMFCL), India’s first maritime NBFC, was inaugurated to finance ports, shipbuilding, and green shipping.
- Digital push for Maritime India: SAGAR SETU, Digital Centre of Excellence (DCoE), DRISHTI framework, and uniform Scale of Rates boost port efficiency.
- Gateway to Green vision unveiled to transform ports into hydrogen hubs for clean energy export.
DEFENCE & SECURITY
- Operation Bihali neutralises Jaish-e-Mohammad terrorists in J&K, highlighting coordinated Army–Police counter-terror strategy.
- Indian Coast Guard inducts ‘Adamya’, first of 8 Fast Patrol Vessels (FPVs), to boost coastal security under Make in India.
- Operation Deep Manifest was launched by DRI to seize illegal Pakistani-origin imports routed via Dubai, enforcing the post-Pahalgam ban.
- Defence Ministry pushes indigenous procurement to cut arms import dependence.
- The Army to induct advanced UAVs and drones for high-altitude surveillance in the Ladakh sector.
- ISRO gears up for Gaganyaan’s next crew module test; human spaceflight targeted for 2025.
- India boosts semiconductor mission with new R&D tie-ups for chip design ecosystem.
SOCIAL ISSUES & GOVERNANCE
- Education Ministry to roll out revamped National Curriculum Framework for Schools this academic year.
- Debate continues over digital news regulations; press bodies raise free speech concerns.
ENVIRONMENT & CONSERVATION
- Heatwave persists in North India, raising concerns over urban water scarcity and power demand.
- Centre plans stricter norms for eco-sensitive zones around protected forests and sanctuaries.
- Five tiger deaths in Karnataka’s Male Mahadeshwara Hills Wildlife Sanctuary spark concerns over poisoning and conservation lapses.
- China’s rare earth export restrictions push India to ramp up exploration under the National Critical Mineral Mission (NCMM).
- Japan faces new earthquakes due to its location on the Pacific Ring of Fire; Mount Fuji and major rivers like Shinano are noted.
SCIENCE & TECHNOLOGY
- Google DeepMind’s AlphaGenome AI aims to decode DNA mutations for next-level health breakthroughs.
- The S&T Clusters programme showcases the AR/VR marketplace Kalaanubhav, which is designed for artisans, driving local innovation ecosystems.
India–U.S. Mini Trade Deal
Context
- India and the U.S. are in final-stage talks for a ‘mini trade deal’ before the July 8, 2025, deadline.
- Talks led by Indian Commerce Minister Piyush Goyal and U.S. Commerce Secretary Howard Lutnick.
- U.S. President hinted at a “very big deal” with India to open market access.
Deadline & Tariff Threat
- The U.S. will impose ‘reciprocal tariffs’ of 26% on all Indian imports if no deal is reached by July 8.
- Tariffs set under the so-called ‘Liberation Day’ tariffs, paused for 90 days by President Trump, end on July 9.
- A failure to reach an agreement means Indian exports to the U.S. will face steep duties.
Key Issues
- Major obstacle: The U.S. wants India to allow imports of genetically modified (GM) crops and cow milk.
- India has never opened these sectors in any Free Trade Agreement (FTA).
- Concerns are mainly about the impact on domestic farmers and food safety.
U.S. Demands
- Duty concessions for industrial goods, automobiles (especially EVs), wines, petrochemical products, dairy, and other agricultural items.
- Easier access for U.S. GM farm products and the dairy market.
India’s Demands
- Waiver of the ‘Liberation Day’ tariffs for India.
- Reduction of increased tariffs on steel and aluminium.
- Market access and tariff cuts for labour-intensive sectors:
- Textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, bananas, etc.
Sensitivity
- GM crops and cow milk are highly sensitive sectors in India due to:
- Potential impact on small farmers’ livelihoods.
- Longstanding domestic resistance to GM food imports.
- Indian negotiators are cautious to avoid a precedent in other FTAs.
Significance
- Aims to ease trade tensions between India and the U.S.
- Protects labour-intensive Indian exports from high tariffs.
- Could pave the way for a larger trade pact in the future.
India–China border
Context: Defence Minister Rajnath Singh met his Chinese counterpart, Admiral Dong Jun, in Qingdao on the sidelines of the SCO Defence Ministers’ meeting to discuss ways to maintain peace along the India–China border and reduce tensions since the 2020 stand-off.
Key Highlights:
- India firmly conveyed its stand on cross-border terrorism and the need for China to help bridge the trust deficit.
- Both sides agreed to continue consultations for disengagement, de-escalation, border management, and final border delimitation through existing mechanisms and Special Representatives-level talks.
- Singh stressed a structured roadmap for permanent engagement and peaceful resolution of the boundary dispute.
- He underlined the importance of creating good neighbourly conditions for Asia’s stability and mutual benefit.
- Singh marked the 75th anniversary of India–China diplomatic ties and welcomed the resumption of the Kailash Manasarovar yatra after five years.
- He also briefed China on the Pahalgam terror attack and India’s Operation Sindoor to dismantle Pakistan-based terror networks.
- On the sidelines, Singh also held separate bilateral meetings with Defence Ministers of Belarus, Tajikistan, and Kazakhstan to strengthen regional security ties.
U.S. Supreme Court ruling
Context: The U.S. Supreme Court ruled on a case concerning former President Donald Trump’s executive order to limit birthright citizenship by denying automatic citizenship to U.S.-born children whose parents are not American citizens or green card holders.
Key Highlights:
- The Supreme Court restricted federal judges’ power to issue broad nationwide injunctions, saying judges can’t always block a policy nationwide while litigation is ongoing.
- The decision ordered lower courts to narrow the scope of three nationwide injunctions that had stopped Trump’s directive.
- The Court did not decide on the policy’s legality, only on the judges’ powers to block it everywhere at once.
- The executive order will not take effect immediately; there is a 30-day pause after the ruling.
- Justice Sonia Sotomayor’s dissent argued that the policy’s unconstitutionality justifies broad injunctions to protect affected people.
- The policy could deny citizenship to over 1,50,000 newborns annually, affecting many immigrants.
New taxation rules and SEBI regulations
Context: Indian listed companies are showing sharply reduced interest in share buybacks in 2025 due to new taxation rules and SEBI regulations, resulting in only four buyback offers worth ₹186 crore as of June 26, compared to 38 offers worth over ₹8,000 crore last year.
Key Highlights:
- The October 2024 tax rule change shifted the tax burden for buybacks from companies to shareholders, treating buyback income on par with dividends.
- Earlier, companies paid a 20% buyback tax, but now shareholders pay tax on capital gains, reducing buyback appeal.
- Many firms advanced buybacks before the new rule came into effect, drying up activity after October 2024.
- SEBI’s regulatory changes have phased out the open market buyback route from this financial year; firms can now only buy back shares through the tender offer route.
- This double impact of tax and stricter SEBI norms has made buybacks less attractive for both companies and shareholders, despite a bearish market where buybacks usually increase.
- Experts say merchant bankers may also be less active due to the end of the open market buyback option.
India’s current account surplus in Q4 FY25
Context: India reported a current account surplus of $13.5 billion (1.3% of GDP) in Q4 FY25, marking a turnaround from a deficit of $11.3 billion (1.1% of GDP) in the previous quarter and higher than the surplus of $4.6 billion (0.5% of GDP) a year ago, according to the RBI.
Key Highlights:
- Merchandise trade deficit stood at $59.5 billion in Q4 FY25, wider than Q4 FY24 ($52 billion) but improved from Q3 FY25 ($79.3 billion).
- Net services receipts rose sharply to $53.3 billion (up from $42.7 billion YoY), driven by higher exports in business and computer services.
- Primary income outgo (mainly investment income payments) moderated to $11.9 billion, down from $14.8 billion last year.
- Personal transfers (mainly remittances) rose to $33.9 billion, up from $31.3 billion YoY, showing strong NRI inflows.
- FDI net inflow was just $0.4 billion, sharply lower than $2.3 billion a year ago, indicating subdued foreign direct investment sentiment in Q4 FY25.
Textile industry’s tariff concerns
Context: The Apparel Export Promotion Council (AEPC) and Cotton Textiles Export Promotion Council (Texprocil) met Commerce Minister Piyush Goyal to raise concerns over the possible 26% reciprocal tariff by the U.S. from July 9, which could severely affect India’s labour-intensive textile and apparel exports.
Key Highlights:
- AEPC Chairman Sudhir Sekhri and Texprocil Chairman Vijay Agarwal flagged that apparel and home textiles are top export products to the U.S. and will be disproportionately impacted by the tariff hike.
- They discussed the issue in the context of the proposed India–U.S. Bilateral Trade Agreement, urging protection for the sector.
- Minister Piyush Goyal assured that the government is committed to safeguarding labour-intensive sectors in the ongoing negotiations to finalise a trade deal and avert the tariff.
- The textile industry fears that higher tariffs could hit jobs, export orders, and India’s competitiveness in the U.S. market.