UPSC Daily Current Affairs: 10th April 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS3/Economy

Understanding Bear Markets

Why in News?

The S&P 500, a stock market index that tracks the performance of 500 of the largest publicly traded companies in the US, has briefly entered bear market territory for the first time since 2022. This development raises questions about market stability and investor sentiment.

Key Takeaways

• A bear market signifies a financial market experiencing prolonged price declines of 20% or more.
• It is typically characterized by widespread investor pessimism and significant liquidation of securities.

Additional Details

• Bear Market: A financial market that undergoes sustained price declines, often seen alongside economic downturns such as recessions. Individual securities can also be categorized as in a bear market if they decline by 20% or more over a sustained period, usually lasting two months or longer.
• Bear Investor: An investor who anticipates that prices will decline. They may engage in short selling, where they sell borrowed securities with the expectation of repurchasing them at a lower price.
• Bear markets are generally viewed as the opposite of bull markets, which are characterized by rising prices.

In summary, understanding bear markets is crucial for investors as they reflect significant shifts in market sentiment and can have profound implications for the economy as a whole.

GS3/Economy

Periodic Labour Force Survey (PLFS), 2024

Why in News?

The latest Annual Report of the Periodic Labour Force Survey (PLFS) for the year 2024, which covers the period from January to December, was released on April 8, 2025.

Key Takeaways

• The PLFS provides essential data on labour force indicators to monitor employment trends.
• It estimates employment and unemployment indicators in both rural and urban areas, updated quarterly and annually.
• Key indicators tracked include Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR).

Additional Details

• Labour Force Participation Rate (LFPR): This measures the percentage of the population that is either employed or actively seeking work, reflecting active engagement in the labour market.
• Worker Population Ratio (WPR): Indicates the percentage of the population that is currently employed, showcasing productive engagement.
• Unemployment Rate (UR): Represents the percentage of individuals in the labour force who are unemployed, providing insights into job availability.
• Current Weekly Status (CWS): Evaluates a person's employment status based on activities pursued over the past 7 days, focusing on short-term employment fluctuations.
• Usual Status (ps+ss): Calculates employment status based on activities pursued in the past 365 days, considering both principal and subsidiary economic activities.

The 2024 PLFS report highlights various trends in employment, including a gradual improvement in workforce participation, particularly among males, and small decreases in unemployment rates for rural and urban female sectors. However, the overall national LFPR and WPR showed slight declines, indicating potential challenges in job creation amidst a growing population.

GS3/Economy

Electronics Components Manufacturing Scheme

Why in News?

The Ministry of Electronics and Information Technology (MeitY) has announced the Electronics Components Manufacturing Scheme to enhance the manufacturing capabilities of passive electronic components in India.

Key Takeaways

• The scheme aims to increase the production of electronic components such as resistors, capacitors, relays, switches, sensors, and connectors.
• It specifically targets passive electronic components, while active components like semiconductors are addressed under the India Semiconductor Mission (ISM).
• The initiative has a duration of 6 years, including a gestation period of 1 year.
• Three types of incentives are offered: turnover-linked, Capex-linked, and a hybrid model.

Additional Details

• Turnover-linked incentive: This incentive is based on the revenue generated by the manufacturers.
• Capex-linked incentive: This is provided for investments made in plants and machinery.
• Hybrid incentive model: A combination of both turnover and capital expenditure incentives.
• Achievements in Electronics Sector: India's electronics production has surged from ₹1.90 lakh crore in FY 2014-15 to ₹9.52 lakh crore in FY 2023-24, with a compound annual growth rate (CAGR) exceeding 17%.
• Electronics exports have risen from ₹0.38 lakh crore in FY 2014-15 to ₹2.41 lakh crore in FY 2023-24, showcasing a CAGR of more than 20%. India currently ranks as the second-largest mobile phone producer worldwide.
• Future Projections: By 2026, India's electronics production is anticipated to hit USD 300 billion.

Government Initiatives for Electronics Growth

• Make in India (2014): A program aimed at establishing India as a global hub for design and manufacturing.
• Phased Manufacturing Programme (2017): Focused on increasing domestic value addition in mobile phones and their components.
• Production Linked Incentive (PLI) Scheme (2020): Designed to boost domestic manufacturing across mobile phones, electronic components, and semiconductor packaging, offering incentives of 3-6% on incremental sales.
• Semicon India Program (2021): This initiative has a financial allocation of ₹76,000 crore to promote the domestic semiconductor industry.
• Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) (2021): Provides a 25% financial incentive for capital expenditure in electronic goods manufacturing.
• Increased Budget for 2025-26: The allocation for electronics manufacturing has risen from ₹5,747 crore in FY 2024-25 to ₹8,885 crore in FY 2025-26.

In summary, the Electronics Components Manufacturing Scheme is a significant step towards bolstering India's manufacturing ecosystem in the electronics sector, aiming for substantial growth and investment in the coming years.

GS3/Economy

RBI Cuts Key Rate by 25 Basis Points, Growth Projection Lowered to 6.5%

Why in News?

The Reserve Bank of India’s Monetary Policy Committee (MPC) has decided to cut the repo rate by 25 basis points, lowering it to 6%. Additionally, the growth forecast for FY2026 has been revised down from 6.7% to 6.5%. This decision comes amid global uncertainties, particularly due to ongoing trade wars.

Key Takeaways

• The repo rate cut aims to bolster economic growth amidst rising global trade tensions.
• The MPC has shifted its monetary policy stance from 'neutral' to 'accommodative.'
• Domestic inflation risks are currently under control, aided by falling commodity prices.

Additional Details

• Repo Rate: This is the interest rate at which commercial banks borrow money from the Reserve Bank of India. The recent cut marks the second consecutive reduction.
• Monetary Policy Stance: The MPC's shift to an 'accommodative' stance suggests that further rate cuts may be possible in the future, focusing on stimulating economic growth.
• Growth Forecast: The RBI has lowered India's GDP growth projection for FY2026 due to the adverse effects of trade wars and policy uncertainties.
• Inflation Control: Despite potential risks from global uncertainties, the decline in commodity and crude oil prices is expected to keep domestic inflation manageable.
• Additional Measures: The RBI announced various measures including the introduction of forward contracts in government securities and a review of trading timings across markets.

In conclusion, the RBI's recent decisions reflect an urgent need to support India's economic growth in light of external pressures and uncertainties. The focus remains on ensuring a stable and conducive environment for growth while managing inflation risks effectively.

GS2/Polity

India’s Protection of Interests in Aircraft Objects Bill: A New Legal Framework for Aviation

Why in News?

Recently, the Indian Parliament passed the Protection of Interests in Aircraft Objects Bill, 2025, which establishes a standardized legal framework to manage disputes between airlines and aircraft lessors.

Key Takeaways

• The Bill aligns India’s aviation laws with global standards set by the Cape Town Convention.
• It empowers the Directorate General of Civil Aviation (DGCA) as the Registry Authority.
• Lessors can repossess aircraft within two months of default.
• The legislation aims to foster a more investor-friendly environment in the aviation sector.

Additional Details

• Background: The Bill was passed in April 2025 to address issues arising from airline insolvencies, with past cases such as GoFirst and Kingfisher Airlines highlighting the need for reform.
• Global Standards: The Bill implements the Cape Town Protocol, which India acceded to in 2008 but previously lacked a domestic enforcement mechanism.
• Legal Certainty: It defines remedies and dispute resolution timelines, enhancing predictability in aircraft leasing contracts.
• Industry Reception: While welcomed, concerns remain about India's complex taxation system and the clarity regarding Special Purpose Vehicles (SPVs).
• The Bill could potentially lower leasing costs by 8-10%, which may lead to reduced airfares for passengers.

The Protection of Interests in Aircraft Objects Bill, 2025, represents a significant reform in India’s aviation sector. It modernizes the legal framework for aircraft leasing, aims to protect creditor interests, and seeks to enhance global confidence in India’s aviation infrastructure. Despite challenges in implementation, especially related to taxation and regulatory consistency, the Bill is a crucial step towards positioning India as a prominent aircraft leasing hub.

GS3/Defence & Security

Akash Air Defence Missile System

Why in News?

India has recently offered its indigenous Akash air defence missile system to the United Arab Emirates (UAE), showcasing its advancements in defence technology.

Key Takeaways

• The Akash missile system is a short-range surface-to-air missile designed to protect critical areas from aerial threats.
• It was indigenously developed by India's Defence Research and Development Organisation (DRDO) and is manufactured by Bharat Dynamics Ltd (BDL) in Hyderabad.
• The system was inducted into the Indian Air Force in 2014 and the Indian Army in 2015.
• In 2022, Armenia became the first foreign nation to purchase the Akash missile system.

Additional Details

• Specifications: The Akash missile measures 5.8 meters in length, has a diameter of 350 mm, and a wingspan of 1,105 mm.
• Range of Operation: The missile can engage targets within a range of 4.5 km to 25 km.
• Altitude of Operation: It is effective at altitudes from 100 m up to 20 km.
• Guidance System: The missile employs command guidance to accurately target various aerial threats, including helicopters, fighter aircraft, and UAVs.
• The system can simultaneously engage multiple targets in either Group Mode or Autonomous Mode.
• It features built-in Electronic Counter-Counter Measures (ECCM) to enhance its operational effectiveness against jamming.
• The entire weapon system is configured for mobile platforms, allowing for flexible deployment.
• Open System Architecture: This design ensures adaptability to both current and future air defence environments.
• The Akash system is equipped with the Rajendra phased array radar, which provides crucial data on the range, azimuth, and altitude of flying targets.

This development highlights India's growing capabilities in defence technology and its strategic partnerships on the international stage.

GS2/International Relations

The Pandemic — Looking Back, Looking Forward

Why in News?

Last month marked five years since the COVID-19 pandemic began to alter lives across the globe. As we reflect on this half-decade milestone, we find ourselves amidst discussions aimed at understanding the pandemic's impact on humanity. A crucial question arises: have we truly absorbed the lessons COVID-19 revealed, and are we applying them to foster a more inclusive, resilient, and innovative world?

Key Takeaways

• The fragility of public trust in health systems was severely exposed during the pandemic.
• Technology acted as both a vital resource and a barrier, highlighting the digital divide.
• The pandemic amplified existing inequalities, particularly affecting marginalized communities and women.
• COVID-19 revealed systemic weaknesses in global health systems, demanding urgent reforms.
• The necessity for equitable international cooperation in health governance has become more pronounced.

Additional Details

• Public Trust: The success of public health interventions relies heavily on the trust that people place in health institutions and governments. The pandemic highlighted severe cracks in this trust, particularly evident in countries like India, where underreporting and communication failures eroded confidence.
• Technology's Role: While technologies like AI accelerated research and provided continuity in healthcare through telemedicine, they also exposed the digital divide, particularly in the Global South, worsening inequalities.
• Vulnerability and Inequity: The pandemic did not create vulnerability but magnified it. Women faced disproportionate challenges in employment and mental health, and marginalized communities struggled to access healthcare.
• Systemic Reforms: COVID-19 exposed structural gaps in health systems, particularly in underfunded areas. Calls for universal health coverage and improved infrastructure have gained urgency.
• Global Health Governance: The experience of the pandemic has highlighted the need for equitable frameworks in global health, balancing innovation protection with universal access.

Five years later, while progress has been made in adapting to the pandemic's challenges, the essential query remains: have we truly learned from this experience? The goal is to work towards a unified vision of "One World, One Health," rather than retreating into fragmented, protectionist approaches driven by narrow interests.

GS2/International Relations

Understanding India’s China Conundrum

Why in News?

The evolving geopolitical and military posture of China under President Xi Jinping represents a significant shift from previous leadership styles. This transformation not only reflects a revival of historical narratives but also impacts regional dynamics, particularly in relation to India. The complexities of their relationship comprise both cooperative and confrontational elements that require careful analysis.

Key Takeaways

• China's assertive policies under Xi Jinping draw from its imperial past and aim to reshape regional dynamics.
• Recent border skirmishes highlight the caution India must exercise in its bilateral relations with China.
• The strategic imbalance in military and technological capabilities poses significant challenges for India.
• China’s growing influence in South Asia and beyond complicates India’s strategic environment.

Additional Details

• Historical Legacy: Under Xi, China has invoked the legacy of the Qing Dynasty to support its territorial claims, leading to border provocations in regions such as the Himalayas.
• Military Modernization: China's defense budget is increasing at a rate of 7.2% in 2025, compared to India’s spending of under 2% of GDP, highlighting a significant strategic imbalance.
• Technological Advancements: China's lead in areas like Artificial Intelligence and cyber warfare poses a threat to India's strategic autonomy.
• China’s expanding diplomatic efforts in South Asia, particularly with Bangladesh, signify a shift in regional allegiance away from India.
• China's proactive engagement in Africa for energy resources contrasts sharply with India's limited influence in the region.

In conclusion, India's relationship with China is complex and multifaceted, characterized by both historical ties and modern rivalry. While diplomatic efforts are essential, they must be supported by vigilance and enhanced military capabilities. A strategy that combines realism with preparedness is crucial for navigating this intricate geopolitical landscape.

GS2/International Relations

US Pauses Higher Tariffs for Most Countries but Hits China Harder

Why in News?

The recent global market crisis prompted President Donald Trump to temporarily suspend most tariffs for 90 days. However, he significantly increased tariffs on Chinese imports to 125%, indicating a pivot in the ongoing trade conflict towards a direct confrontation with China. Countries benefiting from the tariff pause will now face a reduced 10% tariff as the U.S. engages in individual negotiations with each nation.

Key Takeaways

• The U.S. has suspended most tariffs for 90 days but increased tariffs on Chinese goods sharply.
• Total trade between the U.S. and China reached $582.4 billion in 2024, with a significant trade deficit for the U.S.
• Immediate consequences of tariffs could lead to higher import costs and potential economic challenges for the U.S.

Additional Details

• Trade Deficit: The U.S. faces a trade deficit of approximately $295 billion, which is about 1% of its GDP, contrary to Trump's claim of $1 trillion.
• Immediate Consequences: High tariffs could make imports from China prohibitively expensive, affecting critical sectors like pharmaceuticals and technology.
• U.S. Strategy: The U.S. is prioritizing talks with neighboring countries to engage economically while delaying negotiations with China.
• Long-Term Concerns: Beyond tariffs, the U.S. has grievances including currency manipulation and non-tariff barriers imposed by China.
• China's Strategic Advantages: China's political stability and economic planning give it significant leverage in the ongoing trade conflict.
• Domestic Impact: U.S. consumers, especially low-income groups, are likely to bear the burden of increased costs due to tariffs, as essential goods are heavily reliant on imports from China.

The ongoing trade tensions highlight a complex interplay of economic strategies, political narratives, and global market implications. As both countries remain firm in their positions, the potential for a full-scale trade conflict looms, raising critical questions about the future of international trade relations.

GS3/Defence & Security

Rafale-M Jets Procurement

Why in News?

The Cabinet Committee on Security (CCS), led by the Prime Minister, has recently approved a significant deal worth ₹63,000 crore for the acquisition of 26 Rafale-M fighter jets from France for the Indian Navy.

Key Takeaways

• The deal involves 22 single-seater Rafale-M jets and 4 twin-seater trainer variants.
• The jets are designed for operation from India's aircraft carriers, INS Vikramaditya and INS Vikrant.

Additional Details

• Background: Initially, India aimed to purchase 126 jets under the MMRCA tender initiated in 2007, which was later put on hold in 2015. A direct deal in 2016 resulted in the procurement of 36 Rafale jets for the Indian Air Force (IAF), delivered between 2019 and 2022.
• About the Rafale Fighter Jet: The Dassault Rafale is a 5th generation, twin-engine, delta-wing multirole fighter aircraft manufactured by Dassault Aviation, capable of achieving speeds of up to Mach 1.8 and possessing a combat radius exceeding 1000 km.
• Key Features: The aircraft is equipped with advanced avionics, including RBE2 AESA radar and SPECTRA electronic warfare suite. It is powered by two SNECMA M88 turbofan engines, enabling supercruise capability.
• Variants: The Rafale family includes the Rafale C (single-seat Air Force version), Rafale B (twin-seat training variant), and Rafale M (naval variant with reinforced landing gear and tailhook for carrier operations). Other variants include Rafale N (for nuclear strike) and Rafale R (for research and development).

This procurement marks a crucial step in enhancing the operational capabilities of the Indian Navy, reinforcing India's maritime security strategy.

GS2/Polity

The Crisis of Constitutional Discretion - Governor’s Role in India’s Federal Framework

Why in News?

The Supreme Court’s recent judgment concerning the conduct of Tamil Nadu Governor R.N. Ravi is poised to significantly influence Centre-State relations. This verdict underscores India's federal ideals, especially during challenging times, and enhances the administrative autonomy of States while regulating the functioning of constitutional offices across the nation.

Key Takeaways

• The Supreme Court's ruling alters the manner in which Governors fulfill their constitutional duties.
• It emphasizes the need for a balance in powers between elected representatives and appointed governors.
• The judgment aims to uphold the federal spirit enshrined in the Constitution amidst growing politicization.

Additional Details

• Supreme Court Intervention: The Court intervened when the Tamil Nadu governor withheld assent for 10 bills, deeming such delays arbitrary and unconstitutional.
• Article 200: The Governor does not possess absolute discretion over legislative bills, affirming that States should legislate freely on subjects under their jurisdiction as per the Seventh Schedule.
• The Court has set strict timelines for the Governor's assent, reconsideration, or referral of bills to the President to protect federal democracy from unelected governors.
• Historical Context: During the constituent assembly debates, various leaders like B.N. Rau and Sardar Patel advocated for an elected governor, while B.R. Ambedkar preferred a non-elected figure to maintain neutrality and avoid conflict with the Chief Minister.

The Supreme Court's judgment serves as a critical reminder of the essence of cooperative federalism. It calls for the Governor's office to revert to its constitutional ideals of neutrality and non-partisanship. Without structural and procedural reforms, the federal fabric of the Constitution remains at risk.

GS1/History & Culture

Navkar Mahamantra Divas

Why in News?

The Prime Minister has inaugurated and participated in the Navkar Mahamantra Divas at Vigyan Bhawan, New Delhi.

Key Takeaways

• The event is observed annually on April 9.
• It promotes peace, non-violence, and spiritual harmony globally through collective chanting of the Navkar Mantra.

Additional Details

• Vishwa Navkar Mahamantra Divas:This day is dedicated to the Navkar Mantra, which venerates five supreme beings:
  • Arihants: Beings with "Keval Gyan" (perfect knowledge) who guide souls destined for liberation, possessing twelve divine qualities.
  • Siddhas: Those who have eradicated all karmas and attained Moksha, endowed with eight pure qualities.
  • Acharyas: Leaders who embody 36 virtues and guide others on the spiritual path.
  • Upadhyayas: Scholars imparting knowledge about the path to Moksha, possessing 25 virtues.
  • Sadhus: Renunciants who refine themselves through penance, possessing 27 significant qualities.
• Key Jain Principles Associated:
  • Ahimsa (Non-Violence): The mantra embodies Ahimsa, promoting peace and harmony through the acknowledgment of life’s interconnectedness and encouraging friendliness towards all beings.
  • Anekantavada (Non-Absolutism) and Syadvada: These principles advocate for the appreciation of diverse perspectives and truths, offering solutions to global challenges like terrorism and environmental degradation.
  • Tapas (Self-Discipline) and Vairagya (Detachment): The mantra serves as a spiritual tool for self-realization and mental stability, fostering inner peace.
  • Samyak Darshana (Right Faith) and Samyak Jnana (Right Knowledge): It connects the teachings of the Navkar Mantra to building a developed India that honors its heritage while embracing progress.
  • Svadhyaya (Self-Study) and Sadhana (Spiritual Practice): The mantra encourages these practices as essential for personal growth and societal harmony.

The Jain philosophy emphasizes that the world is created and maintained by (a) Universal Law, (b) Universal Truth, (c) Universal Faith, or (d) Universal Soul. This reflects the core belief in interconnectedness and the importance of spiritual growth through collective practices.