UPSC Daily Current Affairs: 22nd August 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS3/Economy

RBI Warns Against Raising 4% Inflation Target

Why in News?

The Reserve Bank of India (RBI) has released a discussion paper concerning the monetary policy framework, where it cautions that raising India's current inflation target of 4% could jeopardize the credibility of the monetary policy and potentially reverse the economic stability achieved in the last decade.

Key Takeaways

• The RBI warns against raising the 4% inflation target currently in place.
• Public feedback is sought on key issues regarding inflation targeting.
• Maintaining the credibility of the monetary policy framework is crucial.

Additional Details

• Monetary Policy Framework: The RBI's discussion paper emphasizes the importance of maintaining the current inflation target to avoid losing investor confidence and undoing past policy gains.
• Core vs. Headline Inflation: The RBI has invited feedback on whether to target core inflation (excluding food and energy prices) or headline inflation (which includes all items). Core inflation is said to be less volatile, but the RBI argues that food prices significantly impact overall inflation.
• Current Economic Context: The RBI noted that raising the inflation target amidst global economic uncertainties could be perceived as weakening the inflation targeting framework, while lowering the target below 4% may not align with India's economic conditions.
• Historical Context: Since adopting a flexible inflation targeting framework in 2016, which set a medium-term CPI target of 4% with a tolerance band of 2-6%, the RBI has maintained this target until March 2026.

In conclusion, the RBI emphasizes the need for a stable and credible monetary policy framework that continues to target headline CPI inflation to effectively manage inflationary pressures and support economic stability.

GS3/Economy

Simplified Two-Rate GST Structure

Why in News?

The Group of Ministers (GoM) on Rate Rationalisation has approved a proposal from the Centre to simplify the Goods and Services Tax (GST) into a two-rate structure. This recommendation is set to be presented to the GST Council for final approval.

Key Takeaways

• The GST, launched on July 1, 2017, is a comprehensive, multi-stage, destination-based indirect tax on goods and services.
• The current GST structure consists of five slabs: 0%, 5%, 12%, 18%, and 28%, with additional cess on luxury and sin goods.

Additional Details

• Objectives of GST: The GST aims to establish One Nation–One Tax, reduce cascading taxation, simplify compliance, and expand the tax base.
• Current Exemptions: Essential goods such as food, medicines, and education items fall under the 0% slab. Notably, petroleum, alcohol, and electricity are excluded from GST.
• Proposed Changes: The new structure will remove the 12% and 28% slabs, retaining only the 5% and 18% slabs. Approximately 99% of items currently in the 12% category will shift to the 5% slab, while 90% of items in the 28% category will move to the 18% slab. A new 40% rate will be introduced for demerit goods like tobacco and luxury cars, with the compensation cess on 28% items being eliminated.
• Implementation Timeline: The new structure is expected to be implemented by October 2025, coinciding with Diwali.

The proposed two-rate GST structure aims to simplify tax compliance and improve transparency. However, some states, including Kerala, have expressed concerns about potential revenue loss and have requested a compensation mechanism to address these issues.

UPSC 2018 Question: Consider the following items:

• 1. Cereal grains hulled
• 2. Chicken eggs cooked
• 3. Fish processed and canned
• 4. Newspapers containing advertising material

Which of the above items is/are exempted under GST? Options: (a) 1 only (b) 2 and 3 only (c) 1, 2 and 4 only *(d) 1, 2, 3 and 4

GS2/Polity

Justice is Not About ‘Teaching Someone a Lesson’

Why in News?

The recent judgment of the Chhattisgarh High Court in a custodial death case has raised significant concerns regarding India's legal stance on police violence and caste oppression. The disturbing facts of the case involve a Dalit man who died in custody, with a medical report showing no injuries, only for the post-mortem to reveal 26 wounds. The court's reasoning, which downgraded the conviction from murder to culpable homicide, suggested that the police intended merely to "teach a lesson" to the victim, highlighting troubling implications for the rule of law and the protection of marginalized communities.

Key Takeaways

• The phrase "teaching a lesson" normalizes custodial brutality as a form of discipline.
• Constitutional morality demands that violence cannot be justified as correction or deterrence.
• The courts have a responsibility to uphold the rights of vulnerable communities against police excesses.

Additional Details

• Custodial Violence: This case exemplifies a broader issue of custodial violence in India, which disproportionately affects the poor and marginalized populations.
• Caste Dimension: The victim's identity as a Dalit was overlooked, with courts dismissing caste-based motivations due to a lack of direct evidence, ignoring the structural nature of caste oppression.
• Judicial Precedents: Despite existing guidelines from the Supreme Court aimed at preventing custodial torture, compliance remains inadequate, and accountability mechanisms are weak.
• Path Forward: Courts must categorically reject any justification for custodial violence, ensuring that police actions are bound by law and not personal judgment.

The Constitution of India is founded on principles of dignity, equality, and the rule of law. It is crucial that these values are upheld and that custodial violence is recognized as a criminal act, not as a misguided form of discipline. The judiciary must actively work to ensure that no citizen, especially the most marginalized, has their rights violated in the name of correction. Accepting anything less risks moving towards authoritarianism, where justice is defined by violence rather than rights.

GS2/International Relations

Amid the Disruptions Unleashed by US President Trump, Should India Rethink Its Engagement with China?

Why in News?

The dynamics of the India-China relationship have gained renewed attention following the recent visit of Chinese Foreign Minister Wang Yi to India. This visit occurs amidst the shifting geopolitical landscape influenced by former US President Donald Trump’s erratic policies, particularly regarding US-China relations, and increasing scrutiny over India’s oil purchases from Russia. The discussions between the two nations led to a 10-point understanding aimed at improving cooperation, but underlying tensions remain unresolved, particularly in Ladakh and due to China’s support for Pakistan.

Key Takeaways

• Signs of a cautious thaw in India-China relations post-Galwan clashes.
• Unresolved border tensions and persistent mistrust complicate diplomatic outreach.
• India's security concerns are heightened by the China-Pakistan axis and economic dependencies.

Current State of India-China Relationship

• A Cautious Thaw: Recent engagements, including a possible Modi-Xi meeting at the SCO summit, indicate a willingness to ease tensions.
• Unfinished Border Business: Troop patrolling restrictions in Ladakh continue, and discussions on de-escalation have seen limited progress.
• Persistent Trust Deficit: India's concerns over China's military ties with Pakistan and economic leverage remain significant hurdles.

China-Pakistan Axis and India's Security Concerns

• Operation Sindoor 2025: Enhanced military support from China to Pakistan raises alarms for India.
• Strategic Consequences: The growing military cooperation complicates India's security landscape, creating a two-front challenge.

Trade Dependence Shaping Geopolitical Weakness

• Weaponisation of Dependencies: China has restricted exports of critical supplies to India, signaling potential leverage.
• Hydropower Concerns: Chinese dam projects threaten India's interests regarding water resources.

Can Tactical Outreach Substitute for Structural Resolution?

• Wang Yi's Visit: Resulted in a 10-point understanding but lacked significant concessions on key issues for India.
• India's Position: Prime Minister Modi emphasizes the need for stable relations grounded in realism.

Why Outright Conflict Remains Unlikely

• Geographical Constraints: The Himalayas present significant logistical challenges for a sustained military conflict.
• China's Strategic Calculus: Beijing has historically avoided conflicts to focus on economic growth.
• Cost of Conflict: War with India could jeopardize China's global ambitions and economic goals.

The Limits of Aligning with China Against the US

• US Factor: Trump's unpredictable China policy impacts India's geopolitical strategy.
• MEA Clarification: India reaffirmed its One-China policy, signaling cautious diplomatic navigation.

Way Forward

• Strengthen Border Posture: Enhance infrastructure and surveillance along the Line of Actual Control (LAC).
• Diversify Dependencies: Invest in domestic production of critical minerals and technologies.
• Engage but Verify: Maintain dialogue while ensuring outcomes are measurable.
• Diplomatic Balancing: Pursue strategic autonomy while engaging in multilateral frameworks like QUAD and SCO.
• Water Security Mechanisms: Advocate for institutionalized frameworks for water-sharing on the Brahmaputra.

The India-China relationship is at a critical juncture. Although recent diplomatic outreach hints at potential engagement, the entrenched mistrust and complex security challenges dictate a cautious approach. India's focus should remain on pragmatic diplomacy that neither escalates tensions nor fosters unrealistic expectations of a reset in relations.

PYQ Relevance

[UPSC 2017] "China is using its economic relations and positive trade surplus as a tool to develop potential military power status in Asia." This statement highlights the impact of China's economic leverage on India, particularly through initiatives like the China-Pakistan Economic Corridor (CPEC), which enhances military collaboration and intensifies security challenges for India.

Mapping Microthemes

• GS Paper II (IR): India-China relations, India-US-China triangle, border disputes, strategic autonomy.
• GS Paper III (Security): Two-front challenge, defence preparedness, technology denial regimes.
• GS Paper IV (Ethics): Realpolitik vs idealism in foreign policy and diplomacy.

GS3/Science and Technology

Charge-Coupled Device

Why in News?

The charge-coupled device (CCD) is a groundbreaking electronic component that has had a profound impact on various technological fields, particularly in imaging systems.

Key Takeaways

• A CCD converts light into electrical signals using an array of capacitors.
• It consists of an integrated circuit made up of small picture elements known as pixels.
• The device operates on the principle of the photoelectric effect to generate images.

Additional Details

• Functionality: Each pixel in a CCD acts as a light sensor, collecting photons and converting them into electrical charges. These charges are sequentially transferred across the device to create a digital image.
• Photoelectric Effect: When light hits the CCD, it generates electron-hole pairs in the semiconductor material. This process produces a small group of electrons that corresponds to the intensity of light received by the pixel.
• The sequential transfer mechanism of charges resembles passing buckets of water, allowing for precise imaging results.

CCDs have revolutionized digital imaging, replacing traditional film in cameras and enabling high-quality imaging in various fields such as medicine and astronomy. Their ability to capture detailed images has made them indispensable in today’s technology landscape.

GS3/Environment

NTCA Restricts Tiger Corridors to Minimal Pathways, Easing Project Clearances

Why in News?

The National Tiger Conservation Authority (NTCA) has recently limited the identification of tiger corridors to only 32 designated "least cost pathways." This policy change simplifies project clearances, yet it raises significant ecological concerns regarding tiger conservation.

Key Takeaways

• NTCA's policy shift focuses on 32 established least cost pathways for tiger corridors.
• This decision has sparked debates among conservationists about the impact on tiger movement and genetic diversity.

Additional Details

• Tiger Corridors: These are essential natural linkages that connect tiger reserves and protected areas, facilitating safe movement for tigers and other wildlife across fragmented habitats.
• Importance: Tiger corridors are crucial for maintaining genetic diversity, reducing human-wildlife conflict, and ensuring the ecological stability of tiger populations.
• Legal Context: Under the Wildlife Protection Act of 1972, any projects near these corridors must be approved by the Standing Committee of the National Board for Wildlife (SC-NBWL).
• Policy Reversal: In July 2025, NTCA stated that corridors would be defined using a combination of protected areas, least cost pathways from 2014, and various scientific studies. However, by August 2025, they narrowed the definition to just the 2014 pathways and TCP-specific corridors, surprising experts.
• Concerns Raised: Conservationists argue that this restrictive approach may undermine long-term tiger survival by neglecting broader ecological data and models that highlight the necessity of multiple movement pathways.
• Judicial Scrutiny: The Bombay High Court is currently reviewing a petition regarding this policy, indicating that further evaluations of tiger corridors may be postponed until a ruling is made.

Overall, while the NTCA's decision may ease development project clearances, the ecological implications and the potential risks to tiger populations highlight a critical need for a balanced approach that considers both development and conservation.

GS1/Geography

Lipulekh Pass

Why in News?

The Indian government has rejected Nepal's claims over Lipulekh Pass, especially in light of recent developments where India and China resumed trade through border points.

Key Takeaways

• Lipulekh Pass is a high-altitude mountain pass in the Kumaon region of Uttarakhand.
• It connects India with Tibet and has significant historical and religious importance.

Additional Details

• Location: Lipulekh Pass is situated near the trijunction of India, Nepal, and China, linking Uttarakhand to Tibet.
• Altitude: The pass is located at approximately 5,334 meters (17,500 feet), making it a strategic gateway to the Himalayas.
• Trade Significance: It was the first Indian border post opened for trade with China in 1992, followed by Shipki La Pass in 1994 and Nathu La Pass in 2006.
• Ancient Trade Route: Historically, it has served as a trade route connecting the Indian subcontinent to the Tibetan plateau.
• Religious Importance: Lipulekh Pass is also crucial for Hindu pilgrims as it is part of the Kailash Mansarovar Yatra.

In summary, Lipulekh Pass holds immense geographical, historical, and religious significance, serving as a vital link between India and its neighbors.

GS3/Economy

Overhauling India’s Vocational Education and Training (VET) System - A Pathway to Viksit Bharat

Why in News?

The Prime Minister's Independence Day address on August 15 emphasized the need for reforms aimed at demand-driven growth, recalibrating GST, and enhancing productivity through education and skill development. Despite having a significant demographic advantage, India grapples with a low-skilled workforce, making vocational education essential for improving employability and productivity.

Key Takeaways

• India has over 14,000 Industrial Training Institutes (ITIs) with 25 lakh sanctioned seats.
• Actual enrolment in ITIs was only around 12 lakh in 2022, indicating just 48% utilization of available seats.
• The employment rate for ITI graduates was only 63% in 2018, compared to 80-90% in countries with robust VET systems like Germany and Singapore.
• Only 4% of the workforce in India is formally trained, significantly lower than international standards.

Challenges in India’s VET System

• Late integration in education system: VET in India is introduced after high school, limiting hands-on training time and employability skills orientation.
• Lack of academic progression: There are no defined pathways from VET to higher education, and no credit transfers exist between systems.
• Quality issues: Curricula are outdated and misaligned with industry needs, with over one-third of ITI instructor positions vacant due to limited training capacity.
• Weak public-private partnerships (PPPs): Limited engagement of private sector employers and inadequate support from MSMEs due to capacity constraints.

Learning from International Best Practices

• Integration in education system: In countries like Germany, VET is blended with school education through a dual system involving paid apprenticeships.
• Academic progression: Singapore provides clear pathways from VET to universities, ensuring VET is recognized both at post-secondary and tertiary levels.
• Perception and quality: Countries with effective VET systems employ industry-led curricula, high-quality instructors, and regular feedback mechanisms.
• Public-private partnerships (PPPs): Governments support VET institutions, while employers contribute to apprenticeship funding and curriculum design.

Reforms Needed in India

• Early integration of VET: Implement the National Education Policy (NEP) 2020 recommendations for VET at the school level.
• Pathways to higher education: Accelerate the National Credit Framework for academic progression and credit transfers.
• Improve quality and relevance: Align training with local industry demands and expand National Skill Training Institutes (NSTIs).
• Strengthen PPPs: Scale up involvement of Private Training Partners and engage MSMEs through CSR funding.
• Increase funding: India allocates only 3% of the education budget to VET, compared to 10-13% in Germany, Singapore, and Canada.

Recent Government Schemes

• Employment Linked Incentive (ELI) scheme: Offers incentives for employers and first-time EPFO-registered workers, although lacking skilling components.
• PM Internship Scheme: Provides one-year placements to youth in top companies but does not ensure pathways to permanent jobs.
• ITI Upgradation Scheme: Focuses on modernizing government ITIs in partnership with the industry, but does not guarantee quality training.

To effectively transform vocational education and training in India, a systemic overhaul is essential. This transformation should aim to make VET more attractive and effective, linking it with formal employment and opportunities for upward mobility. Ultimately, the goal is to turn VET into a pathway to quality jobs, crucial for realizing the vision of Viksit Bharat by 2047.

GS3/Defence & Security

Exercise Samanvay Shakti 2025

Why in News?

The Exercise Samanvay Shakti 2025 was recently launched in Laipuli, located in the Tinsukia district of Assam. This exercise is significant as it marks a collaborative initiative aimed at enhancing military-civil integration in the region.

Key Takeaways

• The exercise is a joint effort by the Indian Army and state officials from Assam and Manipur.
• It aims to improve cooperation and understanding among security forces, government bodies, and civil institutions.
• The inaugural session included participation from various agencies, including the Indian Air Force, police, and local media.

Additional Details

• Objective: The initiative focuses on fostering synergy among different entities to effectively tackle the region's complex challenges through a unified approach.
• Participation: The event saw involvement from numerous organizations, including district administration, police, intelligence agencies, NDRF, SDRF, medical officials, and representatives from industries such as OIL India, IOCL, and Coal India.
• Goals: The exercise aims to enhance readiness, communication, and operational procedures among participating entities through practical rehearsals.
• It seeks to strengthen the bond of trust between the communities in upper Assam and Manipur and their serving institutions, thereby contributing to national integration and preparedness for security challenges.

Exercise Samanvay Shakti represents a significant step towards improving the operational readiness and collaborative efforts between military and civil sectors, fostering a resilient and integrated approach to regional security and development.

GS2/Governance

Poll Integrity and Self-Sabotage: Parties and the ECI

Why in News?

The integrity of electoral processes in India has come under scrutiny due to issues such as duplication, ineligible entries, and ghost voters. These discrepancies compromise electoral integrity, foster fraud and impersonation, and undermine public trust in democracy. While criticism often targets the Election Commission of India (ECI), political parties also play a crucial role in this decline.

Key Takeaways

• Concerns regarding electoral integrity are heightened by issues like ghost voters and duplicate entries.
• The ECI's credibility is questioned due to its opacity and inefficiency.
• Political parties have shifted from traditional grassroots methods to digital strategies, impacting their connection with voters.
• The role of Booth Level Agents (BLAs) is essential for ensuring electoral roll accuracy.
• Revitalizing local party units is vital for enhancing electoral integrity and democratic participation.

Additional Details

• Election Commission of India (ECI): The ECI is responsible for maintaining clean electoral rolls, but it has faced criticism for not adequately addressing irregularities and for restricting oversight, leading to doubts about its impartiality.
• Political Parties' Transformation: Political parties have become more centralized and reliant on modern digital strategies, which can create a false sense of connection with voters, neglecting the vital role of local engagement.
• Booth Level Agents (BLAs): BLAs are intended to assist in ensuring the accuracy of electoral rolls, but recent controversies raise questions about their effectiveness and accountability.

In conclusion, while India has a robust framework for electoral integrity, its effectiveness is jeopardized by neglect and manipulation. For democracy to thrive, both the ECI and political parties must prioritize transparency, accountability, and grassroots engagement.

GS3/Environment

Haryana Notifies Official Forest Definition

Why in News?

Recently, the Haryana government has officially defined the term "forest" in accordance with the dictionary meaning. This definition, based on Supreme Court precedents, has raised concerns among environmentalists who argue that it is too narrow and may exclude the ecologically sensitive Aravalli ridge. Such exclusion could expose this vital area to urbanization, illegal mining, and real estate encroachments, thereby threatening biodiversity and groundwater recharge in one of North India's critical ecosystems.

Key Takeaways

• The Haryana government has defined forests based on specific criteria.
• Environmentalists express concerns over potential exclusions of ecologically significant areas.
• The Supreme Court has mandated that all states formally define forests and conduct surveys.

Additional Details

• Haryana's Definition of Forests:A land patch qualifies as a forest if it meets the following criteria:
  • A minimum area of five hectares in isolation, or
  • A minimum area of two hectares if contiguous with government-notified forests.
  Additionally, it must have a canopy density of at least 0.4 (40%).
• Exclusions from Definition:The definition excludes:
  • Linear, compact, or agro-forestry plantations
  • Orchards outside government-notified forests
  This means tree plantations along roads, canals, and railways, while ecologically beneficial, will not be classified as forests.
• The Supreme Court's March 2025 Ruling: The Court instructed all States and Union Territories to define forests and conduct comprehensive surveys, setting up expert committees to identify forest-like areas and ensure compliance with the 2011 Lafarge Umiam Mining guidelines.
• FCA, 1980: The original Forest (Conservation) Act restricted the dereservation of forests without prior approval from the Centre, covering all recognized forests under the broader definition established by the 1996 Godavarman ruling.
• The 2023 Amendment: Aimed at limiting the definition of forests to notified areas, faced challenges from environmentalists who argue it undermines protections established by previous rulings.

This ongoing debate around the definition of forests in Haryana highlights the tension between environmental conservation and development pressures. Environmentalists are advocating for a broader definition to protect smaller but ecologically significant forest patches.