UPSC Daily Current Affairs: 20th June 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS3/Defence & Security

Navy Inducts INS Arnala

Why in News?

INS Arnala, the inaugural Anti-Submarine Warfare Shallow Water Craft (ASW-SWC), has been officially commissioned into the Eastern Naval Command at the Naval Dockyard in Visakhapatnam. This event marks a significant milestone in enhancing India's maritime security capabilities.

Key Takeaways

• INS Arnala is the first of its kind in the ASW-SWC class, aimed at improving shallow water anti-submarine operations.
• The vessel features over 80% indigenous systems, highlighting India's commitment to self-reliance in defense manufacturing.

Additional Details

• About INS Arnala: Named after the historic Arnala Fort near Vasai, Maharashtra, this vessel symbolizes India's rich maritime heritage.
• Development: Designed by Garden Reach Shipbuilders & Engineers (GRSE) in collaboration with L&T Shipbuilders, it is a product of a Public-Private Partnership (PPP) model.
• Project Significance: This induction represents the start of a broader initiative to deploy 16 ASW-SWC class ships, enhancing India's capabilities in anti-submarine warfare.
• Key Features:
  • Dimensions: 77.6 meters long, making it the first Indian Navy warship powered by a Diesel Engine-Waterjet combination.
  • Arsenal: Equipped with a single centerline rocket launcher, lightweight torpedoes, anti-torpedo decoys, and mine-laying systems.
  • Sensor Suite: Features Hull-Mounted Sonar (Abhay), Low-Frequency Variable Depth Sonar (LFVDS), and Underwater Acoustic Communication System (UWACS).
  • Multi-role Capability: Designed for ASW operations, Search and Rescue (SAR), low-intensity maritime operations, and subsurface surveillance in shallow coastal waters.
• Strategic Importance:
  • Defence Upgrade: INS Arnala replaces outdated Abhay-class corvettes, bolstering India's anti-submarine warfare posture.
  • Coastal Security: Particularly effective for detecting midget submarines and Unmanned Underwater Vehicles (UUVs) in waters less than 30 meters deep.
  • Make-in-India Milestone: This project exemplifies India's growing self-reliance in defense manufacturing, aligning with the Aatmanirbhar Bharat initiative.

In conclusion, the commissioning of INS Arnala is a pivotal step towards strengthening India's maritime defense capabilities, showcasing indigenous development and enhancing operational readiness in coastal waters.

Question: Which one of the following is the best description of ‘INS Astradharini’, which was in the news recently?

• (a) Amphibious warfare ship
• (b) Nuclear-powered submarine
• (c) Torpedo launch and recovery vessel*
• (d) Nuclear-powered aircraft carrier

GS2/International Relations

India-Croatia Relations Strengthened

Why in News?

Recently, the Prime Minister of India visited Croatia and expressed appreciation for the country's solidarity with India following the Pahalgam terror attack. This visit marks a significant step in enhancing bilateral relations.

Key Takeaways

• Prime Minister of India acknowledges Croatia's support.
• Strengthening of defense cooperation between the two nations is anticipated.

Additional Details

• Croatia: Located in the southeastern region of Europe, Croatia lies on the northwestern part of the Balkan Peninsula.
• Bordering Countries: It shares borders with Slovenia (northwest), Hungary (northeast), Serbia (east), and Bosnia and Herzegovina and Montenegro (southeast). The western boundary is defined by the Adriatic Sea, and it has a maritime border with Italy.
• Geographical Features: The country consists of fertile flat plains in the north and low mountains and highlands along the coast, with notable mountain ranges including the Dinaric Alps, Velebit, and Velika Kapela.
• Climate: Croatia experiences a Mediterranean climate, which is favorable for agriculture and tourism.
• Rivers: Major rivers such as the Drava, Krka, and Sava flow through the country.
• Capital: Zagreb is the capital and the largest city, serving as the main administrative, cultural, industrial, economic, and transport hub of Croatia.
• Memberships: Croatia is a member of both the European Union and NATO, playing a vital role in Europe's defense and economic frameworks.
• Ports: Major ports like Rijeka, Split, and Ploče are essential parts of the European Union's core TEN-T network, facilitating trans-European transport.

This visit signifies a commitment to deepening ties in various sectors, particularly in defense cooperation, as both countries aim to enhance their strategic partnership.

GS2/International Relations

Nuclear Non-Proliferation Treaty (NPT)

Why in News?

Iran's Parliament has begun drafting a Bill to exit the Nuclear Non-Proliferation Treaty (NPT) amid escalating tensions with Israel, making this a significant topic in current international relations.

Key Takeaways

• The NPT is a global treaty focused on preventing the spread of nuclear weapons.
• It promotes peaceful uses of nuclear energy and encourages nuclear disarmament.

Additional Details

• Overview of the NPT: The treaty was opened for signature on June 12, 1968, and came into force on March 5, 1970. It is the only binding international agreement that mandates Nuclear Weapon States (NWS) to pursue disarmament.
• Categories of States: The NPT distinguishes between Nuclear Weapon States (NWS) and Non-Nuclear Weapon States (Non-NWS). NWS are defined as countries that tested nuclear weapons before January 1, 1967 (the US, UK, France, Russia, and China).
• Obligations: Non-Nuclear Weapon States (NNWS) commit not to manufacture or acquire nuclear weapons, while NWS promise not to transfer nuclear weapons or assist NNWS in their acquisition.
• Peaceful Use Clause: All member states can develop nuclear energy for peaceful purposes under the oversight of the International Atomic Energy Agency (IAEA).
• Monitoring Agency: The IAEA plays a crucial role in verifying compliance through inspections and reporting.
• Withdrawal Clause: Article 10 allows any country to withdraw from the treaty with three months' notice if it believes its national interests are threatened.

India and the NPT

• India is not a signatory to the NPT and has consistently refused to join, viewing it as discriminatory.
• The country argues that the treaty legitimizes nuclear weapons for five countries while denying them to others.
• India conducted its first nuclear test in 1974 (Smiling Buddha) and follows a "No First Use" policy.
• Despite not being an NPT signatory, India is recognized as a responsible nuclear power and adheres to non-proliferation norms.

Non-members and Withdrawal Trends

• Non-signatories: Countries like Pakistan have never signed the treaty, although both possess nuclear arms. Meanwhile, Israel maintains strategic ambiguity regarding its nuclear capabilities.
• Countries Planning to Withdraw: North Korea signed the NPT in 1985 but withdrew in 2003 and subsequently developed nuclear weapons. Iran, also a signatory since 1970, is considering withdrawal due to IAEA censure and security concerns related to its tensions with Israel.
• If Iran withdraws, it could lead to the cessation of IAEA inspections and heighten fears of a nuclear arms race in the Middle East.

Considerations for Membership in the Nuclear Suppliers Group

What are the consequences of a country becoming a member of the Nuclear Suppliers Group?

• 1. It will gain access to advanced and efficient nuclear technologies.
• 2. It automatically becomes a member of "The Treaty on the Non-Proliferation of Nuclear Weapons (NPT)." Which of the statements given above is correct?

Options: (a) 1 only* (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

GS3/Economy

What is Reverse-Flipping?

Why in News?

SEBI has introduced significant regulatory relaxations aimed at simplifying IPO norms and encouraging startups to return their legal base to India through a process known as reverse-flipping.

Key Takeaways

• Reverse-flipping allows Indian startups previously incorporated abroad to shift their legal and operational headquarters back to India.
• This transition helps startups access domestic capital markets and reduces compliance complexities.
• Startups can benefit from a favorable regulatory ecosystem in India.

Additional Details

• Definition: Reverse-flipping is the process where Indian startups incorporated in foreign jurisdictions return to India, establishing their primary operations domestically.
• Share Swap Arrangement: In this method, shareholders of a foreign parent company exchange their shares for shares in the Indian subsidiary. This may trigger capital gains tax under the Income Tax Act, 1961.
• Inbound Merger (Cross-Border Merger): This involves the merger of a foreign parent company with its Indian subsidiary, allowing the Indian entity to become the surviving legal structure, potentially offering a tax-neutral option if conditions under FEMA, Companies Act, 2013, and NCLT are fulfilled.
• Key Features:
  • Domestic Listing Access: Startups can access Indian IPO markets and valuations.
  • Simplified Compliance: This reduces legal and regulatory complexities from operating across different jurisdictions.
  • Investor Incentives: SEBI now allows foreign venture funds and AIFs to count towards the minimum promoter contribution in public issues.
  • ESOP Relaxation: SEBI permits promoters to maintain Employee Stock Option Plans (ESOPs) granted one year prior to the filing of the Draft Red Herring Prospectus (DRHP).
  • Capital Market Boost: The initiative supports India's ambition to become a global startup and financial hub.
  • Tax & Legal Alignment: The shift aids startups in better compliance with Indian tax and business laws.

Overall, reverse-flipping not only encourages startups to return to India but also aligns with the regulatory changes that make it easier for them to thrive in the domestic market.

[UPSC 2025]

Consider the following statements:

• Statement I: As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders.
• Statement II: Bondholders are lenders to a company whereas stockholders are its owners.
• Statement III: For repayment purposes, bondholders are prioritized over stockholders by a company.

Which one of the following is correct in respect of the above statements?

• (a) Both Statement II and Statement III are correct and both of them explain Statement I.
• (b) Both Statement I and Statement II are correct and Statement I explains Statement II.
• (c) Only one of the Statements II and III is correct and that explains Statement I.
• (d) Neither Statement II nor Statement III is correct.

GS3/Environment

Agarwood: Conservation and Cultural Significance

Why in News?

The rapid increase in market demand for agarwood has resulted in extensive overharvesting, placing wild populations on the verge of extinction.

Key Takeaways

• Agarwood, or Aquilaria malaccensis, is critically endangered due to overexploitation.
• The resin produced by agarwood trees is highly valued for its distinct fragrance.

Additional Details

• Agarwood: This species belongs to the Thymelaeaceae family and is renowned for its fragrant resinous wood, often referred to as Oud, Gaharu, or Agar.
• Resin Production: The resin is generated as a defense mechanism when the tree is stressed by mold infections from the Phaeoacremonium species, particularly Phialophora parasitica.
• Typically, agarwood trees take nearly a decade to mature in the wild, especially in regions like Assam, Tripura, Arunachal Pradesh, Nagaland, Mizoram, and Manipur.
• The name of Tripura’s capital, Agartala, is derived from the once-abundant agarwood trees in the area.
• Ancient texts, including the Charaka Samhita, reference the therapeutic properties of agarwood.
• The Government of India has submitted a Non-Discretionary Finding (NDF) to prevent agarwood's inclusion in the Review of Significant Trade (RST) by CITES.
• Conservation Status:
  • IUCN: Critically Endangered
  • CITES: Appendix II
  • Wildlife (Protection) Act, 1972: Schedule IV

As agarwood is an important cultural, ecological, and economic resource for India, its conservation is crucial for preserving biodiversity and traditional practices.

GS3/Environment

Revised Green India Mission: A Renewed Push for Forest Revival and Climate Resilience

Why in News?

The Government of India has released a revised roadmap for the National Mission for Green India (GIM). This updated plan not only aims to increase and restore forest and green cover but also emphasizes ecological restoration in critical regions such as the Aravalli ranges, Western Ghats, Himalayas, and mangroves. Furthermore, the revised GIM will tackle land degradation and desertification, enhancing efforts to build environmental resilience.

Key Takeaways

• The GIM was originally launched in 2014 under the National Action Plan on Climate Change (NAPCC).
• It aims to enhance forest and tree cover by 5 million hectares and improve the quality of forest cover on another 5 million hectares.
• Tree plantation and afforestation efforts have supported 11.22 million hectares from 2015-16 to 2020-21.

Additional Details

• Funding and Utilisation: Between 2019-20 and 2023-24, the Centre allocated ₹624.71 crore to 18 states for GIM-related initiatives, with ₹575.55 crore already utilized.
• Targeted Implementation: GIM activities prioritize states based on ecological vulnerability, carbon sequestration potential, forest and land degradation levels, and restoration potential.
• Revised GIM Highlights: The updated roadmap focuses on a region-specific approach based on climate impacts, feedback from partner states, and advice from scientific institutions.

The revised GIM is particularly concerned with vulnerable landscapes, including the Indian Himalayas and mangrove ecosystems, promoting best practices tailored to local ecological conditions. Additionally, it integrates efforts with the Aravalli Green Wall Project to combat degradation and create ecological buffers.

Action in the Western Ghats

In the Western Ghats, the GIM will concentrate on:

• Afforestation efforts
• Groundwater recharge
• Eco-restoration of abandoned mining zones

This initiative responds to threats posed by deforestation, degradation, and illegal mining.

Strategy to Combat Land Degradation and Desertification

According to ISRO's Desertification and Land Degradation Atlas, approximately 97.85 million hectares, or one-third of India's land, faced degradation in 2018-19. India has committed to:

• Creating an additional carbon sink of 2.5-3 billion tonnes of CO₂ by 2030 through increased forest and tree cover.
• Restoring 26 million hectares of degraded land by 2030 as part of its international climate commitments.

The revised GIM recognizes impaired open forests as vital for restoration, as they are cost-effective for carbon sequestration. This strategy could potentially sequester up to 1.89 billion tonnes of CO₂ across 15 million hectares.

By enhancing ongoing schemes and boosting afforestation, the GIM aims to expand forest and tree cover by 24.7 million hectares, creating a carbon sink of 3.39 billion tonnes of CO₂, thereby aligning ecological restoration efforts with India's climate objectives and addressing land degradation and global warming.

GS3/Science and Technology

Extreme Helium Star

Why in News?

Recent research has revealed an intriguing characteristic of a star named A980, classified as an Extreme Helium (EHe) star, which contains an unexpected high concentration of germanium, a metallic element not previously found in this type of star.

Key Takeaways

• A980 is part of a rare class of stars known as Extreme Helium stars.
• These stars are low-mass supergiants that lack hydrogen.
• Only 21 Extreme Helium stars have been identified in our galaxy.
• The effective temperatures of EHe stars range from 8000 K to 35000 K.
• The first EHe star, HD 124448, was discovered in 1942.

Additional Details

• Extreme Helium (EHe) Stars: These stars primarily consist of helium rather than hydrogen, which is the most common element in typical stars like the sun. They are believed to form from the merger of a carbon-oxygen white dwarf and a less massive helium white dwarf.
• Germanium: This chemical element has the symbol Ge and atomic number 32. It is a silvery-gray metalloid positioned between silicon and tin in Group 14 of the periodic table. Germanium exhibits a diamond-like crystalline structure and shares similarities in chemical and physical properties with silicon.
• Germanium is stable in air and water; it remains unaffected by alkalis and most acids, except nitric acid.
• Major Producers: China is the leading global producer of germanium, accounting for around 60% of total production, with additional contributions from Canada, Finland, Russia, and the United States.

This discovery of germanium in EHe stars like A980 underscores the complexity and variety of stellar chemistry, inviting further research into the formation and evolution of these unique celestial bodies.

GS3/Economy

What is Merchant Banking?

Why in News?

The Securities and Exchange Board of India (SEBI) has recently announced that merchant bankers (MB) can now engage in unregulated activities like advisory services and consultancy without needing a separate legal entity.

Key Takeaways

• Merchant Banking provides specialized financial services to businesses and corporate clients.
• Merchant bankers act as intermediaries between companies and investors, facilitating financial growth.
• They offer advisory services on mergers, acquisitions, and capital raising.

Additional Details

• Definition: Merchant Banking refers to financial services designed especially for businesses and corporate clients, assisting them in raising funds, managing investments, and expanding operations.
• Role of Merchant Bankers: Their role is akin to that of a financial advisor, aiding in critical decisions and facilitating business expansion through private equity investments and strategic partnerships.
• Issue Management: One primary service is managing the process of issuing shares, debentures, or other securities to raise capital from the public.
• Regulatory Framework: The regulatory framework governing merchant banks in India is overseen by SEBI, which enforces minimum net worth requirements and a strict code of conduct to ensure transparency and fair dealing.
• Compliance: Merchant banks are subject to inspections and audits by SEBI to ensure ongoing compliance; violations can lead to penalties, including suspension or cancellation of their registration certificate.

In summary, merchant banking plays a crucial role in the financial ecosystem by providing essential services to businesses, and the recent changes by SEBI may enhance their operational capabilities and profitability.

GS3/Defence & Security

Why India Should Address Its Propulsion Gap

Why in News?

Recently, there has been increasing excitement surrounding India's Advanced Medium Combat Aircraft (AMCA) stealth fighter, which is considered a significant milestone in the aerospace sector. However, concerns persist due to India's historical reliance on imported engines, stemming from its experience with the HF-24 Marut fighter jet.

Key Takeaways

• India's dependence on foreign engines affects military preparedness and strategic autonomy.
• The AMCA project is hindered by challenges in developing indigenous jet engines.
• Technological and funding constraints have historically limited India's engine development efforts.

Additional Details

• Technological Challenges in Engine Design: Jet engines require high thrust-to-weight ratios, thermal stability, and advanced metallurgy. India has struggled to achieve these benchmarks, as seen with the Kaveri GTX-35VS engine, which has not met performance standards even after extensive testing.
• Lack of Core Materials and Manufacturing Capability: India lacks access to critical technologies such as single-crystal turbine blades and thermal barrier coatings, which are essential for high-performance engines. Negotiations with General Electric (GE) for the F414 engine faced setbacks due to restrictions on technology transfer.
• Fragmented and Short-Term Funding: Defence R&D funding in India is often project-specific and lacks a long-term vision, which hampers continuity in complex projects. For example, despite significant investment in the Kaveri project over 35 years, no operational engine has been produced.
• Over-Reliance on Foreign Engines: Dependence on foreign suppliers has led to complacency in indigenous R&D, slowing down domestic capability-building. India continues to rely on GE engines for its LCA Tejas variants instead of pushing for domestic alternatives.
• Institutional Inertia: Bureaucratic rigidity has resulted in missed opportunities for international collaboration, such as a declined joint project with Safran for engine co-development.

Impact of Engine Import Dependency on India's Defence

• Delays in Defence Production: Dependence on foreign engines causes project delays due to supply chain issues. For instance, the delivery of 99 GE F404 engines for the LCA Mk1A was delayed, affecting aircraft induction timelines.
• Limited Operational Autonomy: India’s reliance on foreign engines makes it vulnerable to geopolitical pressures, limiting its strategic autonomy in defence matters.
• Constraints on Defence Exports: Exporting platforms equipped with foreign engines requires third-party approvals, restricting India's potential in global defence markets.

Steps Taken by the Indian Government

• Strategic Collaborations: India has initiated joint ventures and collaborations to acquire advanced propulsion technology, such as the deal signed during PM Modi's 2023 U.S. visit to co-produce GE F414 engines in India.
• Revival of Indigenous Engine Projects: The government has restructured efforts to develop indigenous jet engines, focusing on future aircraft and UAVs with potential foreign assistance.
• Promotion of Atmanirbhar Bharat: The Defence Ministry has prioritized self-reliance in critical technologies, incentivizing defence PSUs and private players to develop components under Make in India schemes.

Way Forward for India to Achieve Propulsion Self-Reliance

• Establish Strategic Global Partnerships: India should engage with trusted international engine manufacturers to secure critical technology transfers, ensuring no long-term dependency.
• Develop an Integrated Indigenous R&D Ecosystem: Creating a cohesive framework that connects academia and private industry will foster long-term investment in advanced propulsion R&D.
• Encourage Private Sector Participation: Initiatives like the Innovations for Defence Excellence (iDEX) platform can accelerate innovation in jet engine technology.

In conclusion, addressing India's propulsion gap is crucial for enhancing its military capabilities, ensuring strategic autonomy, and promoting self-reliance in defence technology.

GS3/Environment

India’s Green Hydrogen Mission: Domestic Push Gains Momentum Amidst Weak Export Outlook

Why in News?

Stakeholders in India’s burgeoning green hydrogen sector are optimistic about the fuel's potential to significantly influence the country's energy future.

Key Takeaways

• India is focusing on domestic demand for green hydrogen amidst weak international export prospects.
• The National Green Hydrogen Mission aims to establish India as a global hub for green hydrogen by 2030.
• Challenges include high production costs and geopolitical factors affecting export demand.

Additional Details

• National Green Hydrogen Mission: Launched in 2023, this initiative has an investment of Rs 19,744 crore and aims for a production capacity of 5 million metric tonnes (MMT) of green hydrogen by 2030.
• Domestic Demand Focus: With global demand decreasing, India is building a domestic market for green hydrogen, highlighted by a recent tender for 8 lakh tonnes of hydrogen that attracted full bids.
• Cost Competitiveness: Current production costs of green hydrogen range from $4-$5 per kg, significantly higher than $2.3-$2.5 per kg for grey hydrogen, making it necessary to implement policy incentives for commercial viability.
• Future Outlook: Despite challenges, India aims to balance its export ambitions with domestic market development, leveraging its successful renewable energy strategies.

In summary, while India's green hydrogen sector faces significant hurdles, the government's proactive measures and strategic focus on domestic demand could pave the way for future growth and sustainability in the energy landscape.

GS3/Environment

Sharavathi Lion-Tailed Macaque Wildlife Sanctuary

Why in News?

The recent arrest and subsequent bail of farmers accused of entering the Sharavathi Lion-Tailed Macaque Wildlife Sanctuary in Sagar taluk has escalated tensions in the area.

Key Takeaways

• The sanctuary is situated in the Sharavathi River Valley of Sagar taluk, Shivamogga District.
• It forms part of the Western Ghats, recognized as a UNESCO World Heritage Site.
• The total area of the sanctuary is approximately 431.23 sq. km, including the Linganamakki reservoir.
• It was established by merging the Sharavathi Valley Wildlife Sanctuary, Aghanashini Lion-Tailed Macaque Conservation Reserve, and adjacent forest areas.
• The sanctuary shares its southwestern boundary with the Mookambika Wildlife Sanctuary.

Additional Details

• Geography: The sanctuary features a highly undulating terrain, with altitudes varying from 94 m to 1102 m.
• Vegetation: The area is primarily covered by tropical evergreen to semi-evergreen forests, moist deciduous forests, grasslands, and savannas.
• Flora: It is home to a diverse range of plant species, including Dhoopa, Gulmavu, Surahonne, Mavu, and Nandi.
• Fauna: This sanctuary is crucial for the conservation of the endangered lion-tailed macaque (Macaca silenus), which is endemic to the Western Ghats. Other notable mammals include the tiger, leopard, wild dog, jackal, sloth bear, spotted deer, sambar, barking deer, mouse deer, wild pig, common langur, bonnet macaque, and Malabar giant squirrel.

In summary, the Sharavathi Lion-Tailed Macaque Wildlife Sanctuary is an important ecological area that plays a vital role in the conservation of unique species and biodiversity, while the recent events surrounding the farmers highlight ongoing conflicts regarding wildlife protection and local livelihoods.

GS3/Economy

What is the MCA21 Portal?

Why in News?

The Ministry of Corporate Affairs (MCA) has temporarily suspended the MCA21 portal for three weeks to facilitate the transition from Version 2 (V2) to the new MCA21 V3 platform. During this period, the MCA has waived additional filing fees for 13 essential e-forms.

Key Takeaways

• The MCA21 portal offers secure access to various MCA services for professionals, businesses, and the general public.
• The platform is designed to automate processes related to legal compliance under multiple corporate laws.
• MCA21 aims for interoperability with the National e-Governance Services Delivery Gateway (NSDG).

Additional Details

• MCA21 Portal: Launched to ensure efficient access to government services related to company registration and compliance.
• Benefits:
  • Facilitates quick and easy company registration and filing of statutory documents.
  • Provides easy access to public documents.
  • Enhances the resolution of public grievances.
  • Ensures proactive compliance with relevant laws and corporate governance.
• Services offered include:
  • Obtaining Digital Signature Certificates.
  • Applying for Director Identification Numbers (DIN).
  • Viewing master details of registered companies or LLPs.
  • e-Filing for Limited Liability Partnerships (LLP).
  • Complaints and concerns regarding MCA services.
  • Document-related services and fee payment services.
  • Investor services.

This transition to the V3 platform is expected to significantly improve the efficiency of services provided by the MCA, thus benefiting the business community in meeting their statutory obligations.