Daily Current Affairs MCQ: 6th August 2025 - UPSC MCQ

The recent flash floods and mudslides in Dharali village, Uttarkashi, were primarily caused by sustained heavy rainfall over three consecutive days. Unlike typical cloudbursts, this incident resulted from prolonged and intense rainfall, highlighting the vulnerability of Uttarkashi's topography to such disasters. This emphasizes the importance of understanding the specific factors contributing to different types of natural calamities.

Statement 1: True. AUM is a crucial measure as it reflects the size of the fund, indicating both the financial health of the mutual fund and the level of investor confidence. A higher AUM typically signifies that investors have faith in the fund's management and its investment strategies.

Statement 2: False. While net investor inflows and redemptions are significant factors impacting AUM, it is not solely dependent on these. Other factors such as market performance and dividend reinvestments also contribute to the changes in AUM. Therefore, the statement is incorrect as it oversimplifies the dynamics affecting AUM growth.

Statement 3: True. AUM indeed influences management fees, as these fees are often calculated as a percentage of the AUM. Additionally, AUM can establish minimum investment limits due to economies of scale and fund management strategies, impacting investor accessibility and fund operations.

Thus, the correct answer is Option C, as statements 1 and 3 are correct, while statement 2 is not.

1. Equity Funds: This pair is incorrectly matched. Equity funds primarily invest in stocks and equity-linked instruments, not bonds and fixed-income instruments. They are designed to provide growth over the long term.

2. Debt Funds: This pair is incorrectly matched. Debt funds focus on bonds and fixed-income instruments, not stocks and equity-linked instruments. They are aimed at generating regular income with relatively lower risk.

3. Hybrid Funds: This pair is correctly matched. Hybrid funds combine equity and debt investments to balance the risk-return ratio. They are suited for investors looking for a mix of growth and income.

4. Liquid Funds: This pair is correctly matched. Liquid funds invest in short-term debt instruments and are designed to provide high liquidity with low risk. They are ideal for parking funds for short durations.

Pairs 3 and 4 are correctly matched, while pairs 1 and 2 are not. Thus, there are only three correctly matched pairs.

The primary objective of the Rhisotope Project is to prevent rhino poaching by making rhino horns traceable and unsuitable for illegal trade. By injecting rhino horns with a specific radioisotope, the project aims to deter poachers and disrupt the illegal trade of rhino horns, thus protecting these endangered animals.

Statement-I is correct as the Philippines and India indeed established diplomatic relations in 1949. Statement-II is also correct as India's defence exports to the Philippines started with a significant deal for BrahMos missiles, worth USD 375 million. Statement-II explains Statement-I because it provides a specific example of the strengthening of bilateral relations between the two countries in the realm of defence cooperation.

The main goal of Ayurveda Aahara is to standardize Ayurvedic food practices to ensure safety, reliability, and adherence to traditional recipes and preparation methods. By focusing on Ayurvedic dietary principles, this initiative aims to promote balance, seasonality, and the use of natural ingredients in food products. It is designed to harmonize ancient Indian dietary practices with modern nutritional standards, enhancing public health and preserving cultural heritage.

1. BrahMos Missiles - India and Philippines: This pair is correctly matched. India has indeed sold BrahMos missiles to the Philippines, marking a significant development in their defence collaboration.

2. Rhisotope Project - India and South Africa: This pair is incorrectly matched. The Rhisotope Project is a collaboration involving South Africa and the International Atomic Energy Agency (IAEA), not India, aimed at addressing rhino poaching.

3. ITEC Scholarships - India and Philippines: This pair is correctly matched. India offers ITEC scholarships to the Philippines as part of its people-to-people engagement strategy to foster closer bilateral relations.

4. Defence Acquisition Council (DAC) - India and United States: This pair is incorrectly matched. The Defence Acquisition Council is an entity of the Indian Ministry of Defence and not related to the United States.

Thus, the number of correctly matched pairs is two.

Statement-I highlights India’s shift to a technocratic, data-driven welfare model. Statement-II describes the PAHAL scheme’s use of Aadhaar-based direct benefit transfers, bank accounts and data analytics to eliminate intermediaries, which is a direct example of that technocratic approach. Hence, Statement-II explains Statement-I.

Let's analyze each statement:

1. The digitization of welfare governance in India aims to enhance efficiency and reach but can potentially undermine democratic values.
This statement is correct. The shift towards a technocratic, data-centric welfare model in India is intended to improve efficiency and the reach of welfare services. However, it raises concerns about possibly undermining democratic values by sidelining political challenges and democratic dialogue.

2. Social sector spending in India has increased, focusing on areas such as minorities, labor, nutrition, and social security.
This statement is incorrect. The text indicates that social sector spending in India has decreased, affecting critical areas such as minorities, labor, nutrition, and social security, rather than increasing.

3. The Right to Information (RTI) framework in India is under strain, leading to a decline in transparency and accountability.
This statement is correct. The RTI framework in India is experiencing challenges, which has resulted in decreased transparency and accountability within the governance system.

Therefore, statements 1 and 3 are correct, making Option C: 1 and 3 Only the correct answer.

1. Statement 1 is correct. India and the Philippines have indeed committed to doubling their bilateral trade by 2030. This is a part of their strategic partnership aimed at enhancing economic ties.

2. Statement 2 is correct. The sale of BrahMos missiles to the Philippines represents a significant milestone as it is one of the initial instances of India exporting such advanced defense equipment to the Philippines, marking a pivotal development in their defense collaboration.

3. Statement 3 is incorrect. While cultural and educational ties are a component of the relationship, the recent elevation to a strategic partnership primarily focuses on enhancing defense cooperation, maritime security, and trade relations, rather than being centered on cultural and educational initiatives.

Thus, only statements 1 and 2 are correct, making Option B the correct answer.