UPSC Mains Current Affairs for 29 June 2025

India’s China Challenge in the Indian Ocean: Strategic Contest for Primacy

June 29, 2025

India’s China challenge in the Indian Ocean Latest News

The Parliamentary Standing Committee on External Affairs has flagged the growing presence of extra-regional powers in the Indian Ocean Region (IOR) as a major strategic challenge, especially China’s expanding footprint.

Significance of the Indian Ocean

Since the early 2000s, the Indian Ocean's significance has resurged, becoming a critical zone in global security and economic dynamics.

Rise of Regional Economies and Trade Networks

The emergence of new economies, especially India and China, has increased the Indian Ocean’s role in global trade and connectivity, turning it into a central hub of commerce.

Maritime Security and Piracy Threats

The rise of piracy off the Somali coast highlighted vulnerabilities in Sea Lines of Communication (SLOCs), prompting enhanced maritime security efforts across the region.

Indo-Pacific as the New Geostrategic Construct

The Indo-Pacific framework, which links the Indian and Pacific Oceans, has elevated the Indian Ocean’s strategic value, positioning it as a central axis in the evolving global order.

Chinese Advances in the Indian Ocean

Unlike its overt assertiveness in the South China Sea, China has adopted a long-term, calculated approach in the Indian Ocean, gradually enhancing its footprint through economic, political, and maritime initiatives.

Strategic Port Infrastructure and Political Engagement

China is expanding its influence in the IOR by:
- Strengthening political and economic ties with littoral states like Sri Lanka, Maldives, and Bangladesh.
- Investing in dual-use port infrastructure across the region.

Surveillance via Research Vessels

China has been deploying research and survey vessels in the Indian Ocean, docking them in countries like Sri Lanka and Maldives.
These vessels are believed to support underwater surveillance and data gathering, posing a potential security threat to India’s maritime interests.

Launch of the China-Indian Ocean Forum

In 2022, China initiated the China-Indian Ocean Forum, aiming to take the lead in regional governance and multilateral cooperation.
India’s notable absence from the forum highlights a growing geopolitical divergence in the region.

Key Highlights of the Report

The Parliamentary Standing Committee on External Affairs identifies the increasing involvement of extra-regional players, especially China, as a major strategic challenge for India in the Indian Ocean Region (IOR).

Dual-Use Infrastructure and Surveillance Expansion

China is developing ports, airports, and logistics hubs for dual-use purposes.
It is also deploying survey and research vessels to gather sensitive maritime and oceanographic data, boosting its maritime domain awareness.

Naval Power Projection and Military Base in Djibouti

Since establishing a military base in Djibouti (2017), China has expanded its naval presence, increasing both the number of vessels and the duration of deployments across the IOR.

Strategic Assets Near India’s Maritime Boundary

China is actively building dual-use infrastructure in IOR littoral states, including areas near India’s maritime boundary, aiming to support logistical functions and assert maritime dominance.

India’s Response: Regional Partnerships and Sensitisation

India is working with partner nations in the IOR to raise awareness about China's long-term strategic intentions and the security implications of its expanding footprint.

Assurance from Sri Lanka

In December 2024, Sri Lankan President Anura Kumara Dissanayake reiterated that Sri Lanka would not allow its territory to be used against India’s security or regional stability.

India’s Stand on BRI and the CPEC

India maintains a principled opposition to China’s Belt and Road Initiative (BRI).

Projecting Leadership in Maritime Security

India is emerging as a first responder and preferred security partner in the IOR, particularly in:
- Humanitarian Assistance and Disaster Relief (HADR)
- Maritime Domain Awareness (MDA)
- Developmental aid
PM Modi’s launch of the MAHASAGAR doctrine (Mutual and Holistic Advancement for Security and Growth for All in the Region) redefines India’s regional vision.

Strengthening Regional Security Institutions

India is actively reinforcing institutional maritime cooperation, aiming to exclude China from Indian Ocean affairs:
- Indian Ocean Rim Association (IORA)
- Indian Ocean Naval Symposium (IONS)
- Information Fusion Centre – IOR (IFC-IOR)
- Quad and Colombo Security Conclave

Naval Modernisation and Indigenous Capability Building

India is investing heavily in the indigenous development and modernisation of naval assets, with a focus on force build-up and operational readiness in the Indian Ocean.

Source: TH | ORF

India coastline expansion FAQs

Q1: What is India’s China challenge in the Indian Ocean about?

Ans: It concerns China’s strategic expansion through port infrastructure, naval bases, and surveillance across the Indian Ocean Region.

Q2: How is China expanding its presence in the IOR?

Ans: Through dual-use port projects, survey vessels, and forums like the China-Indian Ocean Forum launched in 2022.

Q3: What is India’s strategy to counter China in the IOR?

Ans: India strengthens regional partnerships, promotes the IORA, and invests in indigenous naval capability and maritime diplomacy.

Q4: Why is the Indian Ocean strategically important now?

Ans: Due to global trade, piracy threats, and Indo-Pacific dynamics making it central to 21st-century geopolitics.

Q5: What role does MAHASAGAR play in India’s strategy?

Ans: It’s India’s vision for inclusive maritime security and development, projecting leadership without patron-client dynamics.

India’s Gaps in Gender Equality Metrics Reflected in Global Rankings

June 29, 2025

India’s gaps in gender equality metrics Latest News

India has slipped to 131st out of 148 countries in the 2025 Global Gender Gap Index by the World Economic Forum.
While gaps in economic participation, education, and health have improved or remained stable, political empowerment has worsened. Despite more women voting, their representation in top political positions remains low.
The upcoming 33% reservation for women in legislatures from 2029 may improve this, but sustained efforts are needed to ensure long-term impact.

Reasons Behind the Fall in the Index

India's drop in the 2025 Global Gender Gap Index is primarily due to a decline in political empowerment indicators.
The percentage of women in Parliament fell from 14.4% (78 MPs) in 2024 to 13.6% (74 MPs) in 2025.
Additionally, the share of women in ministerial roles declined from 6.45% to 5.56%, further impacting India’s overall ranking.

Impact of Women’s Reservation on Political Representation

The 33% reservation for women in Lok Sabha and State Assemblies, passed in 2023, will be implemented only after the next Census and delimitation, making 2029 the earliest possible rollout.
If implemented in 2029, the law would raise women’s representation to at least 33%, significantly improving India’s political empowerment metrics on global indices.

Current Representation Levels Remain Low

Women in Lok Sabha have ranged from 3.4% (1977) to 14.4% (2019).
The 18th Lok Sabha (2024) has 74 women members, constituting approximately 13.6% of the total members.
In 2023, women made up only 9% of MLAs across States.
Chhattisgarh had the highest share (18%), while Himachal Pradesh had just one woman MLA and Mizoram had none.

Limited Timeframe, Uncertain Long-Term Gains

The reservation law is valid for only 15 years, meaning it will likely apply to just two general elections (2029 and 2034).
Concerns remain about the sustainability of progress beyond that period.

Gaps in Ministerial and Leadership Pipelines

Even with more women MPs, ministerial appointments may not rise proportionately. Despite decades of 33–50% reservation at local levels, there's no structured pathway to elevate women from panchayats to higher politics.

From Exclusion to Participation: A Historic Shift

In 1952, 28 lakh women were excluded from voting rolls due to being listed only as someone’s wife or mother. Since then, women’s inclusion has drastically improved.

Gender Gap in Voting Narrows

The voter gender gap has shrunk from 17 percentage points in 1962 to less than 2 points in 2014.
In the last two general elections, women voters outnumbered men, partly due to male migration for work.

Women as a Key Votebank

With growing turnout, political parties now actively court women voters, launching targeted welfare schemes like free bicycles for girls and monthly cash allowances for poor women.
The rise in women voters is reshaping electoral strategies and policy priorities, making women a central force in India’s democratic process.

Rising Voters, Stagnant Representation

Despite the surge in women voters, this has not led to a rise in women candidates fielded by political parties.

Parties Avoid Giving Women Winnable Seats

Parties often cite “lack of winnability” to deny women tickets in stronghold constituencies.
Instead, they field women in reserved SC/ST seats to meet multiple quotas.
Experts note that women voters don’t vote solely for women. Unlike caste-based voting, women prefer performance and policies over identity.

The Need for Systemic Change

Since 1952, women candidates have had a higher average winning percentage than men.
The issue lies in low nomination rates, with women making up only 8–9% of candidates from major parties.
Structural barriers, internal party dynamics, and outdated assumptions continue to block capable women from entering the political arena in larger numbers.

Source: TH | TW | PRS

India’s gaps in gender equality metrics FAQs

Q1: Why did India fall in the 2025 Global Gender Gap Index?

Ans: Due to a decline in political empowerment indicators like women’s representation in Parliament and ministerial positions.

Q2: What is India’s rank in the 2025 Gender Gap Index?

Ans: India ranks 131st out of 148 countries, highlighting persistent gaps in gender equality metrics.

Q3: How will women’s reservation affect India’s gender equality?

Ans: It will raise women’s representation to 33% in legislatures, improving India’s gender equality metrics significantly from 2029.

Q4: Do women voters guarantee better representation of women?

Ans: No, despite rising turnout, women remain underrepresented as candidates due to party biases and structural barriers.

Q5: What limits long-term gains of women’s reservation?

Ans: The law’s 15-year validity, limited ministerial inclusion, and absence of a local-to-national leadership pipeline hinder sustained change.

RBI’s Financial Conditions Index – Tracking Market Health in Real Time

June 29, 2025

Financial Conditions Index Latest News

In a bid to enhance real-time monitoring of the country’s financial health, a recent study by the Reserve Bank of India (RBI) has proposed the construction of a Financial Conditions Index (FCI) for India with a daily frequency.

Introduction

To enhance real-time assessment of India’s financial ecosystem, the Reserve Bank of India (RBI) has proposed a Financial Conditions Index (FCI) with a daily frequency.
The FCI is a composite indicator that aggregates data across major financial segments to evaluate how tight or relaxed financial conditions are, relative to their historical average since 2012.
This move aligns with global central banking practices, where FCIs help gauge monetary transmission, inform policy decisions, and signal systemic stress.

Purpose and Structure of the Financial Conditions Index

The proposed FCI aims to serve as a dynamic and high-frequency barometer of India’s financial stability by integrating data from:
- Money Markets
- Government Securities (G-Sec)
- Corporate Bonds
- Equity Markets
- Foreign Exchange Markets
According to the RBI study published in its June 2025 Bulletin, the FCI is designed to:
- Measure the ease or tightness of financial conditions daily.
- Capture trends across calm and volatile phases.
- Serve as a macro-financial surveillance tool for policymakers.
The FCI is built using 20 market-based indicators, and values are standardised to reflect changes in financial tightness or looseness in standard deviation units. A positive value indicates tighter conditions, while a negative value suggests easier financial conditions.

Evolution of Financial Conditions in Recent Years

Post-Pandemic Recovery and Easy Financial Conditions
- The COVID-19 pandemic led to a dramatic tightening of financial conditions due to a sharp sell-off in equity and corporate bond markets.
- However, this was followed by an exceptionally loose financial environment in 2021-2022, driven by the RBI’s proactive interventions, including:
  - Large-scale liquidity infusion
  - Policy rate cuts
  - Regulatory forbearance measures
- During this period, the FCI reached a low of -2.197 in mid-June 2021, indicating extremely easy financial conditions.
Periods of Tightening
- Significant peaks in the FCI were observed during historical stress episodes, such as:
- July 2013 Taper Tantrum: A peak of +2.826, primarily driven by tightening in bond and forex markets due to fears of US Federal Reserve tapering.
- September 2018 IL&FS Crisis: Equity and bond markets contributed to financial tightening, reflecting stress in the NBFC sector.
- Early 2020 COVID-19 Onset: Market panic due to the global economic shutdown led to a sharp tightening again.

Recent Trends and Current Financial Landscape

Since mid-2023, India’s financial conditions have largely remained easy, aided by:
- Robust equity market performance
- Ample liquidity in the money market
- Supportive government bond yields
From November 2024, conditions started to tighten slightly, attributed to:
- Rising global financial uncertainty following the US presidential election
- Changing risk perception in bond and equity markets
- Policy normalisation by global central banks
However, by March 2025, the FCI moderated and returned to near-neutral levels, signalling stabilisation.

Significance and Policy Implications

The introduction of a daily FCI is expected to strengthen India’s macro-financial analysis toolkit. Key implications include:
- Real-time Monitoring: Enables early identification of stress build-up or excess exuberance.
- Policy Calibration: Supports timely and data-backed monetary and fiscal policy decisions.
- Market Guidance: Offers insights to financial market participants regarding liquidity and systemic risk.
Globally, FCIs are used by institutions like the US Federal Reserve and European Central Bank. For India, a customised FCI tailored to its unique market dynamics will aid in improving monetary transmission and crisis management.

Future Outlook

As India’s financial architecture becomes increasingly complex, the RBI’s daily FCI will play a pivotal role in ensuring financial stability.
By offering a unified, real-time view of multiple market segments, it empowers both policymakers and investors with actionable intelligence.
Continued refinement of the index, such as inclusion of newer market indicators, algorithmic adjustments, and integration with other macroeconomic dashboards, can further enhance its utility.

Source : IE | BS

Financial Conditions Index FAQs

Q1: What is the Financial Conditions Index (FCI) proposed by RBI?

Ans: The FCI is a daily composite index that measures the tightness or looseness of India’s financial market conditions across multiple segments.

Q2: Which market indicators are included in the FCI?

Ans: The FCI includes indicators from the money, G-sec, corporate bond, equity, and forex markets.

Q3: When was the financial condition in India at its tightest?

Ans: The tightest condition occurred during the July 2013 taper tantrum, with an FCI value of +2.826.

Q4: Why is the FCI important for policymakers?

Ans: It helps in real-time assessment of financial health, enabling timely policy decisions and early stress detection.

Q5: How has India’s financial condition evolved in 2025?

Ans: After tightening in late 2024, financial conditions have moderated and returned to neutral levels by March 2025.

Secondary Pollutants Now a Major Contributor to India’s PM2.5 Burden

June 29, 2025

Secondary Pollutants Latest News

A recent study has revealed that Secondary Pollutants are responsible for nearly one-third of India’s fine particulate matter (PM2.5) pollution.

Understanding Secondary PM2.5 Pollution in India

Particulate matter smaller than 2.5 microns (PM2.5) is one of the most hazardous components of air pollution, responsible for serious respiratory and cardiovascular diseases.
Traditionally, primary pollutants such as soot and dust from burning fossil fuels have been considered the chief contributors to PM2.5 levels.
However, new research highlights the rising significance of secondary pollutants, especially ammonium sulphate, as key components of India’s air pollution challenge.

Primary and Secondary Pollutants: A Distinction

Primary pollutants originate directly from emission sources such as vehicle exhaust, coal-fired power plants, and biomass burning.
In contrast, secondary pollutants are formed when primary pollutants react with each other or with atmospheric elements like water vapour and sunlight.
These reactions lead to the formation of complex particles like ammonium sulphate and ammonium nitrate, which can be equally or more harmful.

Key Findings of the CREA Study

According to a study by the Centre for Research on Energy and Clean Air (CREA), secondary pollutants, especially ammonium sulphate, constitute up to 34% of India’s PM2.5 mass.
This widespread presence was identified using satellite-based imagery and atmospheric modelling.
Nationwide Impact:
- The average ammonium sulphate concentration across India was found to be 11.9 μg/m³.
- These concentrations are not limited to cities near pollution hotspots, but extend nationwide due to the transboundary nature of air pollution.
Coal Plants as a Major Source:
- Over 60% of India’s sulphur dioxide (SO₂) emissions, the precursor to ammonium sulphate, are linked to coal-fired thermal power plants. These facilities become the primary driver of secondary PM2.5 formation.
Higher Concentration near Coal Plants:
- Within 10 km of coal power plants, ammonium sulphate concentrations were 2.5 times higher (15 μg/m³) compared to areas beyond that range (6 μg/m³).
- Near these plants, it accounts for 36% of PM2.5 pollution, whereas even distant areas reported a significant 23% contribution.

Status of Emission Control Measures

Although it is mandatory for Indian coal thermal plants to install Flue Gas Desulphurisation (FGD) systems to reduce SO₂ emissions, compliance has been poor; only about 8% of such plants have installed the required units.
Further, reports suggest that the government is contemplating rolling back this requirement, which could severely undermine efforts to reduce secondary PM2.5.

Impact Across NCAP Cities

The findings are particularly significant for the 130 cities identified under the National Clean Air Programme (NCAP).
These cities are mandated to reduce pollution by 20-30% by 2025-26, but face an uphill task given the high concentration of secondary pollutants.
Concentration Levels:
- PM2.5 levels due to ammonium sulphate in these cities ranged from 3.9 to 22.5 μg/m³.
Widespread Presence:
- In 114 out of the 130 NCAP cities, ammonium sulphate made up more than 30% of the total PM2.5 burden.
Combined Effect:
- Including ammonium nitrate, secondary pollutants could constitute up to 50% of PM2.5 pollution in urban areas.

Strategies for Mitigation

To address the growing burden of secondary pollutants, a multipronged strategy is required:
Strict Implementation of Emission Norms:
- Enforcement of FGD installation in coal power plants must be non-negotiable. Regulatory rollback would be counterproductive to public health goals.
Agricultural and Industrial Reforms:
- Efficient fertiliser management can reduce ammonia emissions, which are a key reactant in forming secondary particles.
Source-Specific Action:
- Pollution mitigation efforts must target both direct emission sources and precursor gases like SO₂ and NH₃.
Transboundary Cooperation:
- Given the dispersal nature of secondary pollutants, regional coordination between states is essential for effective air quality management.
Real-Time Monitoring and Research:
- Investments in air quality monitoring infrastructure and continuous data-driven research are needed to identify evolving patterns in pollution dynamics.

Source : TH

Secondary Pollutants FAQs

Q1: What are secondary pollutants in the context of PM2.5 pollution?

Ans: Secondary pollutants are formed in the atmosphere when primary emissions react with gases, forming particles like ammonium sulphate and nitrate.

Q2: What is the role of coal-fired power plants in India’s PM2.5 problem?

Ans: Coal plants emit sulphur dioxide, which reacts with ammonia to form ammonium sulphate, a major secondary PM2.5 pollutant.

Q3: How much of India’s PM2.5 burden is from ammonium sulphate?

Ans: According to CREA, ammonium sulphate contributes about 34% to India’s total PM2.5 mass.

Q4: What is the compliance rate for flue gas desulphurisation systems in Indian coal plants?

Ans: Only around 8% of coal-fired power plants in India have installed mandatory FGD systems.

Q5: Why is ammonium sulphate pollution concerning in urban areas?

Ans: In 114 of 130 NCAP cities, ammonium sulphate contributes over 30% of PM2.5 levels, worsening urban air quality.