UPSC Mains Current Affairs for 2 September 2025

by Vajiram & Ravi - 2 September 2025

Vajiram & Ravi provides Daily UPSC Mains Current Affairs for 2 September 2025, tailored for aspirants. We cover all relevant news and events crucial for the exam, ensuring you stay updated & well-prepared.

Bond Market in India – Rising Bond Yields Amid RBI Rate Cuts

September 2, 2025
Bond Market in India

Bond Market in India Latest News

  • India’s 10-year benchmark government bond yield has risen by about 26 basis points in the past month, despite the Reserve Bank of India (RBI) cutting the repo rate by 100 basis points over seven months. 
  • This divergence signals investor unease in the bond market in India over inflation, fiscal risks, and government borrowing requirements.

Bond Market in India

  • Meaning: 
    • The bond market in India is a structured space where governments, companies, and public sector organisations raise money by issuing bonds. 
    • The bond market is not just a place for investors to park their money—it plays a vital role in keeping the Indian economy running smoothly. 
  • Importance:
    • Funding the nation’s development: Example, when the government needs money to build roads, schools, hospitals, or even invest in green energy projects, it issues bonds. 
    • Fueling business growth: Corporate bonds allow businesses to raise money for expansion, new projects, or even to manage existing debt more efficiently.
    • Shaping interest rates: The bond market plays a key role in guiding interest rates. Bond yields—the returns investors expect—act as a benchmark for interest rates across the economy.
  • Types of bond markets in India:
    • Primary bond market: 
      • When a company or government needs funds, it issues bonds for the first time in this market. 
      • Investors purchase these fresh bonds directly from the issuer, providing immediate capital for the issuer’s projects. 
    • Secondary bond market:
      • It allows investors to buy and sell previously issued bonds among themselves. 
      • Prices in the secondary market fluctuate based on interest rates, issuer creditworthiness, and broader economic trends, offering both opportunities and risks for investors.
  • Key types of bonds one can invest in:
    • Government bond market: The government issues various types of bonds, such as -
      • Treasury Bills: Short-term securities with maturities up to one year, ideal for those seeking safety and quick returns.
      • G-Secs (Government Securities): Long-term bonds with maturities from 2 to 30 years, often used to fund major infrastructure projects.
      • State Development Loans (SDLs): Bonds issued by state governments for regional development.
    • Municipal bond market: State and local authorities issue municipal bonds to finance public infrastructure like water supply systems or urban transport. 
    • Corporate bond market: While these bonds carry higher risk compared to government bonds, they also offer higher coupon rates, providing an opportunity for greater returns.
  • Regulation: Government bonds are regulated by Reserve Bank of India (RBI) and Corporate bonds are regulated by Securities and Exchange Board of India (SEBI).

Key Developments in Bond Market in India

  • Bond market dynamics:
    • 10-year bond yield: Rose from around 6.34% to 6.60% despite rate cuts.
    • General expectation: Bond yields fall when repo rate is cut; current rise shows investor concerns.
    • Implication: Rising yields leads to falling bond prices, reflecting selling pressure.
  • RBI’s policy stance:
    • RBI adopted a hawkish stance on inflation despite lowering rates.
    • Monetary Policy Committee (MPC) kept key rates unchanged:
      • Repo Rate: 5.50%
      • Standing Deposit Facility (SDF): 5.25%
      • Marginal Standing Facility (MSF): 5.75%
    • Growth forecast: 6.5% for 2025–26.
    • Inflation forecast: Revised down to 3.1% for 2025–26, but projected to rise to 4.9% in Q1 of 2026–27.

Yield Curve and Market Interpretation

  • Steepening yield curve: Long-term yields rose more sharply than short-term yields.
  • Investor expectation: Higher future borrowing costs.
  • Mutual fund outlook: RBI prioritising inflation control over growth revival.

GST Reform and Fiscal Concerns

  • Proposal: Rationalisation of GST from 4 slabs (5%, 12%, 18%, 28%) to 2 slabs (5%, 18%), plus 40% for sin goods.
  • Market concern:
    • Possible revenue loss of ₹50,000–60,000 crore.
    • Risk of fiscal slippage and higher borrowing needs.
  • Effect: Increased government borrowing would result in higher bond supply and rising yields.

Possible Corrective Measures

  • Government borrowing strategy: Shift to short/medium-term borrowing.
  • RBI interventions:
    • Open Market Operations (OMOs): RBI buys long-term bonds to reduce supply and yields.
    • Operation Twist: Simultaneous buying of long-term bonds and selling of short-term ones.

Forward Outlook

  • No immediate rate cuts likely due to inflation trajectory.
  • If inflation eases further, RBI may adopt a growth-supportive stance.
  • This could revive long-duration bonds and ease yields in the medium term.

Conclusion

  • Going forward, the bond market in India will hinge on how effectively the RBI balances inflation management with the government’s fiscal consolidation efforts. 
  • Prudent borrowing strategies and timely policy interventions like OMOs or Operation Twist can stabilize yields and create space for growth-supportive measures once inflation risks ease.

Source: IE

Bond Market in India FAQs

Q1: Why have India’s 10-year government bond yields risen despite successive repo rate cuts by the RBI?

Ans: Yields rose due to investor concerns over inflation, fiscal slippage, and higher government borrowing, outweighing the impact of policy rate cuts.

Q2: What does the steepening of the yield curve indicate in the context of India’s bond market?

Ans: It signals expectations of higher future borrowing costs and a market perception that inflation control is being prioritised over growth.

Q3: How could the proposed GST slab rationalisation impact India’s fiscal position?

Ans: It may cause a revenue shortfall of ₹50,000–60,000 crore, raising risks of fiscal deficit slippage and higher borrowing.

Q4: What tools can the RBI use to manage bond yields apart from repo rate changes?

Ans: RBI can employ Open Market Operations (OMOs) and Operation Twist to stabilise yields by influencing long-term bond supply.

Q5: What dilemma does the RBI face in balancing inflation control and economic growth?

Ans: While controlling inflation requires a hawkish stance, prolonged tightness may constrain growth, forcing the RBI to weigh stability against revival.

Supreme Court Revisits RTE Exemption for Minority Institutions

September 2, 2025
RTE Exemption

RTE Exemption Latest News

  • The Supreme Court has referred the issue of RTE exemption for minority institutions to a larger Bench, questioning its 2014 ruling that granted them blanket exemption.

Introduction

  • The Right of Children to Free and Compulsory Education (RTE) Act, 2009, is a cornerstone of India’s commitment to universal elementary education. 
  • However, a contentious legal question persists: should minority educational institutions, protected under Article 30 of the Constitution, be exempt from the provisions of the RTE Act? 
  • This debate resurfaced after the Supreme Court, on September 1, 2025, referred the issue to a larger Bench, signalling that its 2014 ruling in the Pramati Educational and Cultural Trust v. Union of India case may require reconsideration.

Debate on RTE Exemption to Minority Institutions

  • The heart of the debate lies in balancing two constitutional guarantees, Article 21A, which ensures free and compulsory education for children aged 6 to 14, and Article 30(1), which grants minorities the right to establish and administer educational institutions of their choice.
  • The 2014 Constitution Bench had ruled that Section 12(1)(c) of the RTE Act, which mandates 25% reservation for children from disadvantaged groups in all private schools, would infringe upon the autonomy of minority institutions. 
  • This judgment effectively excluded all minority institutions, aided or unaided, from the purview of the RTE Act.
  • Critics argue that such blanket exemption dilutes inclusivity, fragments the common schooling system, and enables institutions to misuse minority status to avoid regulatory obligations. 
  • Proponents, however, stress that autonomy is essential for preserving the unique cultural and linguistic character of minority-run schools.

Background of the Case

  • The reference arose from appeals challenging the insistence of state education departments that teachers in minority institutions clear the Teacher Eligibility Test (TET), a minimum qualification prescribed under Section 23 of the RTE Act.
  • The two-judge Bench of the Supreme Court observed that the 2014 ruling had “unknowingly jeopardised the very foundation of universal elementary education.” 
  • The court noted that exempting minority institutions from the RTE framework weakens the vision of inclusivity, reinforcing divides instead of creating shared spaces for learning.

Supreme Court’s Observations and Summary

  • The Supreme Court, while referring the matter to a larger Bench, underlined several critical points:
    • Need for Reconsideration of 2014 Ruling: The Bench held serious doubts over the justification of granting blanket exemption, stating that applying the RTE Act “does not erode, let alone annihilate, the minority character” of institutions.
    • Social Inclusion and Section 12(1)(c): The judges emphasised that the 25% reservation under Section 12(1)(c) serves a vital purpose of social inclusion. 
      • Admitting disadvantaged children under a transparent, state-guided framework does not inherently compromise minority identity.
    • Financial Neutrality: The RTE Act includes reimbursement provisions for private schools implementing Section 12(1)(c), ensuring that the financial burden does not fall solely on institutions.
    • Inclusivity and Equality: The Bench highlighted that the larger purpose of the Act is to create integrated classrooms where children of different backgrounds learn together, aligning with the transformative goals of Article 21A.
    • Misuse of Minority Status: The court also flagged that some institutions have sought minority recognition primarily to bypass obligations under the RTE Act, creating “enclaves of privilege” at the cost of national development goals.
  • The matter will now be placed before the Chief Justice of India, who may constitute a larger Bench to examine whether minority institutions should continue to enjoy a blanket exemption from the RTE Act or whether a nuanced, fact-specific approach should be adopted.

Conclusion

  • The Supreme Court’s move to revisit the exemption of minority institutions from the RTE Act marks a crucial moment in India’s education and constitutional jurisprudence. 
  • It raises fundamental questions about equality, inclusivity, and autonomy. 
  • If the larger Bench revises the 2014 judgment, minority institutions may need to comply with provisions such as the 25% reservation under Section 12(1)(c), thereby reinforcing the idea of a common schooling system. 
  • Striking the right balance between minority rights and the universal right to education will be key to shaping the future of India’s education policy.

Source : TH | IE

RTE Exemption FAQs

Q1: What did the 2014 Supreme Court ruling on RTE and minority institutions state?

Ans: It held that the RTE Act violated Article 30 and granted minority institutions blanket exemption from its provisions.

Q2: Why has the Supreme Court referred the matter to a larger Bench in 2025?

Ans: The court observed that the 2014 ruling undermined inclusivity and may need reconsideration.

Q3: What is Section 12(1)(c) of the RTE Act?

Ans: It mandates 25% reservation in private schools for children from disadvantaged and weaker sections.

Q4: How does the Supreme Court view the impact of RTE on minority character?

Ans: The court held that applying the RTE Act does not erode the minority character of institutions.

Q5: What concerns has the court raised about minority status?

Ans: It noted that minority status is sometimes misused to evade obligations under the RTE Act.

India’s Cancer Map 2025: Regional Trends, Risk Factors, and Key Health Programmes

September 2, 2025
India’s Cancer Map

India’s Cancer Map Latest News

  • An analysis of data from 43 cancer registries shows India’s lifetime risk of developing cancer is 11%, with 15.6 lakh cases and 8.74 lakh deaths reported in 2024.
  • These population-based registries, covering 10–18% of the population across 23 states and Union Territories, track new cancer cases, deaths, and regional trends. 
  • Using 2015–19 data, researchers have identified critical patterns in cancer incidence, offering valuable insights for health policy and planning.

Key Trends in India’s Cancer Burden

  • An analysis of data from 43 cancer registries (2015–2019) recorded 7.08 lakh cancer cases and 2.06 lakh deaths. 
  • The study, conducted by researchers from leading institutions including AIIMS Delhi, Tata Memorial, and Adyar Cancer Institute, excluded 2020 data due to Covid’s impact on health systems.

Gender Disparities in Cancer Cases and Deaths

  • Women accounted for 51.1% of cancer cases but only 45% of deaths, largely because breast and cervical cancers — the most common among women — are more easily detectable and treatable. 
  • In contrast, cancers more common in men, like lung and gastric cancers, are harder to detect early and have poorer outcomes.

Rising Oral Cancer Cases

  • Oral cancer has now overtaken lung cancer as the most common cancer in men, despite declining tobacco use (34.6% to 28.6% between 2009–10 and 2016–17). 
  • This rise is attributed to the long latency of tobacco’s effects and additional risk factors such as alcohol consumption, which increases the risk of multiple cancers.

Northeast India: The Cancer Hotspot

  • The highest incidence rates were recorded in the Northeast, especially Mizoram (21.1% lifetime risk for men, 18.9% for women). 
  • Factors include higher tobacco use, risky dietary habits (fermented pork fat, smoked meats, spicy food, hot beverages), and greater prevalence of carcinogenic infections like HPV, Helicobacter pylori, and hepatitis.

Geographical Spread of Cancer in India

  • Cancer incidence shows strong regional variations. 
  • Breast cancer is highest in Hyderabad (54/100,000), while cervical cancer peaks in Aizawl (27.1). 
  • Lung cancer is most common among men in Srinagar (39.5) and among women in Aizawl (33.7), with high rates also in metro cities like Chennai, Delhi, Bengaluru, and Visakhapatnam. 
  • Oral cancer is most prevalent among men in Ahmedabad (33.6) and among women in East Khasi Hills (13.6), with high cases across western, central, and northern India. 
  • Prostate cancer is highest in Srinagar (12.7).

Policy and Healthcare Significance

  • Findings underline the need for targeted cancer care programs, from screening and awareness campaigns to early detection and treatment. 
  • In the Northeast, comprehensive approaches — including stronger healthcare infrastructure, community engagement, and lifestyle changes — are critical.

Prevention and Early Detection

  • With breast cancer alone contributing 30% of female cases, screening and awareness programs are essential. 
  • HPV vaccination and cervical cancer screening are vital given the high incidence of cervical cancer across registries. 
  • According to WHO, 30–50% of cancers are preventable through lifestyle changes and early detection, highlighting the importance of public health initiatives.

India’s Key Programmes to Fight Cancer

  • India has developed a multi-pronged strategy combining policy, infrastructure, financial aid, and research to combat the rising cancer burden.

National-Level Programmes

  • NPCDCS (National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke): Focuses on oral, breast, and cervical cancer screening, early detection, awareness, and infrastructure strengthening.
  • Strengthening of Tertiary Care for Cancer Scheme: Establishment of 19 State Cancer Institutes (SCIs) and 20 Tertiary Cancer Centres (TCCCs) to decentralise advanced cancer treatment.
  • Ayushman Bharat Yojana (PM-JAY): Provides free treatment (chemotherapy, radiotherapy, surgery) for poor families, covering over 90% of registered cancer patients.
  • Health Minister’s Cancer Patient Fund (HMCPF): Financial aid up to ₹15 lakh per patient, ensuring affordable treatment at 27 Regional Cancer Centres.
  • National Cancer Grid (NCG): World’s largest cancer care network (287 centres) treating over 7.5 lakh new cancer patients annually, ensuring standardised, evidence-based care.

Budget & Infrastructure Support

  • Union Budget 2025-26: Allocated nearly ₹1 lakh crore for health, including Day Care Cancer Centres in all districts, and customs duty exemptions on 36 lifesaving drugs.

Research & Innovation

  • NexCAR19 CAR-T Cell Therapy (2024): India’s first indigenous gene therapy for blood cancers, developed by IIT Bombay, Tata Memorial, and ImmunoACT.
  • Quad Cancer Moonshot (2024): Collaboration with the US, Japan, and Australia to eliminate cervical cancer through HPV vaccination and screening.
  • ACTREC Expansion (2025): Enhancing cutting-edge cancer research, treatment, and education facilities.

Awareness & Lifestyle Interventions

  • Campaigns like Eat Right India, Fit India Movement, and Yoga programmes promote prevention through nutrition and fitness.
  • National Cancer Awareness Day and World Cancer Day are used for mass awareness campaigns.

Source: IE | IE | PIB

India’s Cancer Map FAQs

Q1: What does India’s cancer map reveal about overall risk?

Ans: The analysis shows a lifetime cancer risk of 11%, with 15.6 lakh cases and 8.74 lakh deaths reported across India in 2024.

Q2: Which cancers are most common in Indian women?

Ans: Breast and cervical cancers account for 40% of female cases, often detected earlier and with better treatment outcomes compared to male-dominant cancers like lung cancer.

Q3: Why is oral cancer rising among Indian men?

Ans: Despite declining tobacco use, oral cancer rates are increasing due to long latency of tobacco effects and other risks like alcohol consumption.

Q4: Why is Northeast India considered a cancer hotspot?

Ans: High tobacco use, unique diets, infections like HPV, and risky lifestyle factors make the Northeast region record India’s highest cancer incidence rates.

Q5: What programmes is India implementing to fight cancer?

Ans: Key initiatives include NPCDCS screening, Ayushman Bharat coverage, State Cancer Institutes, National Cancer Grid, NexCAR19 gene therapy, and HPV vaccination drives.

25th SCO Summit 2025: Key Outcomes, Documents Signed, and India’s Role

September 2, 2025
25th SCO Summit 2025

25th SCO Summit 2025 Latest News

  • PM Modi attended the 25th SCO Summit in Tianjin, China, where discussions focused on global governance reform, counter-terrorism, peace and security, economic cooperation, and sustainable development.
  • Established in 2001 by founding members China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, the Shanghai Cooperation Organization (SCO) now has 10 member states, two observer states and 15 dialogue partners from Asia, Europe and Africa. 
    • Laos was granted the partner status during 2025 summit.
  • In 2017, at Astana, India and Pakistan officially joined SCO as full members.

Key Documents Signed at the 2025 SCO Summit in Tianjin

  • At the 25th Meeting of the Council of Heads of State of the SCO in Tianjin, 20 significant documents were signed, shaping the future agenda of the grouping.

Strategic Declarations and Resolutions

  • Tianjin Declaration adopted as the central political outcome.
  • A Development Strategy for 2026–2035 was approved, outlining long-term priorities and direction for the SCO’s growth in the next decade.
  • Cooperation Programme (2026–2030) to counter extremist ideology within SCO space.
  • Roadmap for SCO Energy Cooperation until 2030.
  • SCO granted observer status within the Commonwealth of Independent States (CIS).
  • Cholpon Ata (Kyrgyz Republic) declared SCO tourist and cultural capital for 2025–2026.

Institutional Strengthening

  • Four new SCO centers were inaugurated with dedicated roles:
    • Countering security threats and challenges.
    • Tackling transnational organized crime.
    • Enhancing information and cybersecurity.
    • Strengthening anti-drug cooperation.
  • Decision taken to establish an SCO Development Bank, aimed at boosting infrastructure development, economic progress, and social cooperation among member states.

Expanded Cooperation Platforms

  • The summit announced initiatives to create new SCO platforms and centers in the fields of:
    • Energy and sustainable growth.
    • Green industry and climate-friendly practices.
    • Digital economy and cybersecurity.
    • Artificial intelligence, tech innovation, and higher education.
    • Vocational and technical education for workforce development.

Structural Reforms and Expansion

  • Major breakthrough in structural reforms: observer states and dialogue partners were merged into a single category of SCO partners.
  • Laos was granted partner status, expanding the SCO into a 27-nation family (10 members and 17 partners).

SCO Tianjin Declaration: Pahalgam Attack Mentioned

  • The declaration explicitly condemned the April 2025 Pahalgam terror attack in India, which killed 26 people.
  • Condolences were expressed to victims’ families, with a call to bring perpetrators and sponsors to justice.
  • Other incidents, such as the Jaffer Express hijacking (March) and Khuzdar school bus bombing (May) in Pakistan, were also condemned.

Departure from Defence Ministers’ Meet

  • At the SCO Defence Ministers’ meeting in Qingdao (June 2025), Pahalgam was omitted from the draft statement due to Pakistan’s opposition.
  • India’s Defence Minister Rajnath Singh refused to sign the statement then, insisting terrorism concerns must be included.
  • Three months later, the leaders’ summit corrected this omission, explicitly mentioning Pahalgam and cross-border terrorism.

Changing India-China Dynamics

  • Relations between India and China showed signs of thaw, with PM Modi’s first China visit in seven years to meet President Xi Jinping.
  • The Tianjin declaration is seen as a signal of Beijing’s willingness to strengthen ties with New Delhi amid US tariff pressures.
  • Despite the shift, the declaration did not name Pakistan for sponsoring terrorism.
  • For India, the mention of Pahalgam is progress, but trust-building with Beijing requires much more.

Key Highlights of PM Modi’s Speech at 2025 SCO Summit in Tianjin

  • In his address, PM Modi outlined India’s SCO vision under three pillars – Security, Connectivity and Opportunity. 
  • He stressed that peace and stability are essential for prosperity and called for firm, coordinated action against terrorism, radicalisation, and terror financing, while rejecting double standards. 
  • He thanked member states for their solidarity after the Pahalgam terror attack and urged accountability for countries supporting cross-border terrorism.
  • On connectivity, he reaffirmed India’s strong backing for projects like the Chabahar Port and the International North-South Transport Corridor, and highlighted opportunities in startups, innovation, youth empowerment, and cultural exchange. 
  • He also proposed establishing a Civilizational Dialogue Forum under SCO to deepen people-to-people ties.
  • Supporting SCO’s reform agenda, PM Modi welcomed new initiatives to counter organised crime, drug trafficking, and cyber threats.
  • He and urged a similar approach for reforming global institutions, including the United Nations, to make them more representative and effective.

Source: TH | IE |MEA

25th SCO Summit 2025 FAQs

Q1: What was the main focus of the 25th SCO Summit 2025?

Ans: The summit focused on global governance reform, counter-terrorism, economic cooperation, sustainable development, and expanding partnerships under a new 2026–2035 development strategy.

Q2: What key documents were signed at the SCO Summit in Tianjin?

Ans: Twenty major documents were signed, including the Tianjin Declaration, SCO 2035 Development Strategy, counter-extremism programme, and roadmap for energy cooperation.

Q3: What did the Tianjin Declaration say about terrorism?

Ans: It strongly condemned the Pahalgam terror attack, along with incidents in Pakistan, and called for bringing perpetrators and sponsors of terrorism to justice.

Q4: What were PM Modi’s priorities at the SCO Summit?

Ans: PM Modi outlined India’s vision of security, connectivity, and opportunity, stressing counter-terrorism, regional stability, connectivity projects, and a new Civilizational Dialogue Forum.

Q5: What institutional changes were announced at the SCO Summit?

Ans: Four new SCO centres were created for security, cyber threats, drugs, and crime, alongside a decision to establish an SCO Development Bank.

Enquire Now