Current Affairs 16 August 2025
Content PM calls for self-reliance, flags ‘demographic plot’ Major GST shake-up: 12% and 28% slabs to be axed India to build indigenous air defence system by 2035: PM Why Maharashtra’s small, marginal farmers are rejoicing over U.K. FTA Rain and Flash Floods in J&K Civil and criminal cases: what they are, how they differ PM calls for self-reliance, flags ‘demographic plot’ Self-Reliance (Aatmanirbharta) Traditional Meaning: Economic: Reducing dependence on imports, strengthening domestic manufacturing. Strategic: Defence indigenisation, food security, energy security. Civilisational: Linked to aatma samman (self-respect, dignity). Expanded Vision (PM’s framing): Not just import–export balance or currency reserves. About building intrinsic national strengths and capabilities (innovation, technology, resilience). Relevance : GS 2(Governance ) , GS 3(Growth and Development) Contextual Background Global Trade Tensions: US tariffs (50% on Indian goods under Trump) → India vulnerable to protectionism. China’s economic assertiveness → global “supply chain weaponisation”. Domestic Challenges: High unemployment. Dependence on fertilizer, electronics, semiconductors. MSMEs constrained by compliance costs. Security Dimension: Insurgencies (Naxalism). Border demographic shifts (illegal migration, cross-border influences). Rising cyber and AI-linked vulnerabilities. Key Announcements in the Speech Economic Reforms Second-Generation GST Reforms: Simplify tax compliance, reduce rates on essentials, address inverted duty structures. Expected → relief in household budgets + improved MSME viability. Next-Generation Economic Reforms Task Force: Broader structural reforms (labour, capital markets, digital economy). Employment Pradhan Mantri Viksit Bharat Rozgar Yojana (₹1 lakh crore corpus): ₹15,000 one-time grant for first-time employees. Incentives to private firms for new job creation. Goal: boost formal sector hiring. Technology & Innovation Semiconductor Mission: 6 units operational, 4 sanctioned. “Made-in-India” chips by 2025 → reduce import dependency, critical for electronics, defence, EVs. Innovation Push: AI, cybersecurity, deep-tech, operating systems → global competitiveness. Security & Demography Defence Self-Reliance: Indigenous weapons during Operation Sindoor. Green corridors replacing Naxal corridors in Chhattisgarh. Demographic Mission: To address “conspiracies” altering demographic character, esp. border areas. Linked to illegal migration, demographic imbalances → security concern. Farmers & Agriculture Protection against external tariff pressures (esp. US demands). Reduce fertilizer dependency on imports. Analytical Dimensions (A) Economic Significance Positive: GST 2.0 can correct flaws of first phase. Semiconductor production → reduce $16–20 bn annual import bill. Employment corpus → demand-side stimulus. Challenges: Semiconductor industry needs ecosystem (skilled manpower, water, power). Fiscal burden of new schemes. Job incentives risk being short-term unless tied to skill-building. (B) Strategic Significance Defence indigenisation: Moves India closer to Strategic Autonomy. Technology race: Without AI/OS development, India risks digital dependence on US/China. Demographic focus: National security lens applied to migration and border dynamics. (C) Political-Economic Messaging Links aatmanirbharta = aatma samman → emotional + cultural appeal. Longest ever speech → signals importance of message to domestic + global audience. Timing: Amid global trade wars + tech disruption → frames India as resilient power. Critical Evaluation Strengths: Holistic framing (economy, defence, technology, demography). Forward-looking → AI, semiconductors, deep-tech. Recognises MSMEs as job engines. Concerns: Repetition risk: Aatmanirbhar Bharat has been announced multiple times since 2020; execution gap persists. Employment incentives may not solve structural unemployment (automation, skills mismatch). Fertilizer import substitution requires R&D + investment in green ammonia, not just declarations. Broad Implications Economic Governance: Push for next-gen reforms → signal to markets + investors. Geopolitics: Subtle message to US/China → India won’t be squeezed by tariffs or supply chain coercion. Domestic Politics: Reinforces nationalist themes (self-respect, demographic security). Long-term Nation-Building: Semiconductor + AI + defence self-reliance can reshape India’s global standing. Major GST shake-up: 12% and 28% slabs to be axed Understanding GST and its Current Structure What is GST? Goods and Services Tax (GST) is a unified indirect tax system introduced in India in July 2017. It subsumed multiple indirect taxes (excise, service tax, VAT). GST is a destination-based tax collected where goods/services are consumed. Current GST Slabs (before proposed reform): 0% (Nil rate) – essential items. 5% – mass consumption items. 12% – processed foods, some industrial goods. 18% – most goods and services (major revenue generator). 28% – luxury items, white goods, sin items. Special rates: 0.25% (precious stones), 3% (gold, silver). Cess: Additional levy on luxury/sin goods (cars, tobacco). Relevance : GS 3(Taxation) Proposed Reforms New Structure: Retain 5% and 18% slabs. Eliminate 12% and 28% slabs. Introduce: Concessional rate <1% – gold, silver, semi-precious stones. High “sin rate” 40% – 5–7 items (tobacco, gutka, luxury items). Reallocation of items: 99% of items in 12% slab → 5%. 90% of items in 28% slab → 18%. Remaining 10% of 28% slab → “sin rate” (40%). No additional cess → only GST rates apply. Rationale for Reform Simplification: Reducing slabs → easier compliance, fewer disputes. Equity: Similar items to be taxed at same rate (e.g., all namkeen taxed equally). Consumption boost: Lower taxes on white goods, toiletries, processed food → increases demand. Curbing evasion: Lower rates discourage under-invoicing and tax avoidance. Correcting inverted duty structure: Prevents working capital lockups for firms. Ease of living: Pre-filled returns, faster refunds, tech-based registration. Revenue Implications Current Revenue Distribution: 28% slab → 11% of GST revenue. 12% slab → 5%. 5% slab → 7%. 18% slab → 67% (backbone of GST). Post-reform expectation: Revenue hit in short term. Long-term gain from: Higher consumption. Wider tax net. Reduced evasion. RBI’s estimate: Average GST rate currently ~11.6%; post-reform, will fall significantly → consumer-friendly, but requires trust in revenue buoyancy. Stakeholder Dynamics Centre’s Role: Can propose reforms but GST Council (states + Centre) has final say. States may resist if revenue loss feared. States’ Concerns: Dependence on GST compensation (ended in 2022). Fear of shrinking tax base. Political dynamics: Opposition-ruled states may demand higher compensation mechanisms. Industry Impact: Positive: White goods, consumer durables, daily-use items cheaper. Exporters/MSMEs: Relief from inverted duty structure. Negative: Luxury/sin goods industries face higher taxation (40%). Economic Implications Positive Effects: Demand push in FMCG, white goods → higher production, job creation. Reduced compliance burden → boosts MSME competitiveness. Correcting inverted duty → frees capital for investment. Challenges: Risk of revenue shortfall → fiscal deficit pressure. States’ buy-in critical → political bargaining may delay. Inflation risk in transition if items are reclassified improperly. Global Context India’s GST vs Other Countries: Most successful GST regimes have 2–3 rates (e.g., Singapore – single rate, Canada – 2 rates). India initially had 5+ rates due to political compromises. Proposed reform → brings India closer to global best practices. Critical Analysis Strengths: Consumer-friendly, pro-middle-class. Simplifies compliance architecture. Signals trust in consumption-led growth. Concerns: Reliance on buoyancy assumption risky (consumption may not rise enough to offset revenue loss). GST Council consensus often difficult (Centre vs States tussle). Exemptions list still large (health, education, petroleum products outside GST). 40% slab may encourage smuggling/black market in tobacco/gutka. India to build indigenous air defence system by 2035: PM Basics: Understanding Air Defence Systems What is Air Defence? A military system to detect, track, intercept, and destroy enemy aerial threats (aircraft, drones, missiles). Includes: Radar & Surveillance systems → early warning. Surface-to-Air Missiles (SAMs) → neutralising threats. Command & Control networks → decision-making. Why critical for India? Two-front challenge (China & Pakistan). Rising drone warfare (e.g., Pakistan-based terror networks). Protection of civilian and strategic infrastructure (airports, power plants, hospitals). Independence from foreign suppliers (S-400, Israeli systems). Relevance : GS 3(Internal Security, Defence) The Sudarshan Chakra Mission Objective: By 2035, India will develop a fully indigenous multi-layered air defence shield. Coverage: Both strategic (military bases, nuclear facilities) and civilian assets (hospitals, railways, religious places). Features (envisioned): Intercept any aerial threat (drones, UAVs, cruise missiles, fighter jets, hypersonic weapons). Multi-platform technology (radar networks, AI-driven sensors, directed energy weapons, missile interceptors). Expandable shield → nationwide coverage. Symbolism: Named Sudarshan Chakra, invoking Lord Krishna’s mythological divine weapon of protection and retribution. Current Capabilities and Gaps Present Systems: Russian S-400 (3 units inducted, 2 more pending). Effective, but dependence on Russia. Indigenous Projects: Akash (SAM), MR-SAM (with Israel), QRSAM, Astra (air-to-air missile). IACCS (Integrated Air Command & Control System): Successfully coordinated during Operation Sindoor vs Pakistan. Gaps: Reliance on foreign suppliers (Russia, Israel, US). No indigenous long-range interceptor (like THAAD). Emerging threats: Hypersonic glide vehicles, swarm drones. Strategic Significance Self-reliance (Atmanirbhar Bharat): Reduces vulnerability to foreign sanctions/blackmail. Deterrence: Ability to neutralise Pakistan’s drones/missiles and counter China’s sophisticated arsenal. Symbol of Strategic Autonomy: Post-Operation Sindoor, reinforces India’s ability to act independently without fear of nuclear blackmail. Civilian Security: Extends beyond military → ordinary citizens, infrastructure, and “centres of faith”. Link to Defence Industrial Base Indigenous Jet Engines: PM’s call to scientists/youth → develop engines for fighter aircraft (critical gap today, still reliant on imports). Parallel with Past Successes: COVID-19 vaccine self-sufficiency. UPI revolution in digital finance. Tejas LCA, Chandrayaan-3, Gaganyaan. Defence PSU + Private Sector Role: HAL, BEL, DRDO, startups, and MSMEs. Other National Security Announcements Operation Sindoor: Showcased India’s use of Made-in-India weapons to destroy Pakistan’s terror infrastructure. Indus Waters Treaty Stand: “Blood and water cannot flow together” → strong message against Pakistan, signalling possible renegotiation. Strategic Philosophy: Self-reliance = strength and dignity. No compromise on national interests. National security ≠ foreign dependence. Economic & Political Dimensions Economic: Huge investment in R&D, defence industry → job creation, technology spin-offs. Reduces forex outgo on arms imports (~$10 bn annually). Political: 2035 target ties into Viksit Bharat @ 2047. Appeals to nationalism, youth, innovators. Enhances India’s stature in global defence market. Challenges Ahead Technological: Hypersonic missile defence is cutting-edge; only US, Russia, China experimenting. Financial: Defence R&D costs are massive; sustained budgetary support required. Institutional: Coordination among DRDO, armed forces, private sector often slow. Geopolitical: Foreign suppliers (Russia/US/Israel) may resist losing contracts. Implementation Risk: Past delays (Arjun tank, Tejas) show indigenous projects take decades. Why Maharashtra’s small, marginal farmers are rejoicing over U.K. FTA Basics Nashik = “Grape Capital of India” • Over 3 lakh metric tonnes of grapes exported in 2023–24, worth $400+ million. • Maharashtra is the largest producer. U.K. as a key market • One of India’s top importers of grapes. • Grapes earlier faced 8% tariff in the U.K. → now reduced to zero under FTA. Farmers’ profile • Most are small/marginal farmers (<2 acres). • Increasing shift from traditional domestic varieties (Sonaka) → export-quality varieties (Thompson, Ara). Collective farming • Farmers’ Producer Companies (FPCs) like Sahyadri Farms enable scale, bargaining power, and compliance with international standards. • Sahyadri alone exports 22,000 MT annually, 30% to the U.K., with ₹1,900 crore turnover. Relevance : GS 3(Indian Economy , Agriculture) Economic Impact Higher incomes: • Tariff elimination makes Indian grapes more competitive against South Africa & Chile. • Farmers expect at least 15% better returns. Multiplier effect: • Improved standard of living, disposable income for rural households. • Encourages investment in land, technology, and allied businesses. Rural employment: • Increased demand for farm labour, logistics, packaging, and cold storage. Competitiveness & Standards Stringent norms in EU/U.K.: • Uniform berry size, colour, taste, and residue-free produce required. • Regular soil & petiole testing is now standard. Shift in farming practices: • Use of less chemicals, more sustainable techniques. • Push towards precision farming & global best practices. Role of Collective Farming Necessity for small farmers: • With average landholding <1 ha, individual farmers cannot compete globally. • FPCs ensure aggregation, quality control, certification, and export linkages. Sahyadri Model: • Over 14,000 farmers. • 30+ new grape varieties, 19 patented. • Enables end-to-end ecosystem → from cultivation to global retail shelves. Broader Implications Diversification: • Beyond grapes: pomegranate, mango, citrus fruits may also benefit under FTA. Food safety push: • Higher standards improve domestic market quality too. Global expansion: • Lessons from U.K. compliance can help entry into Japan, U.S., and premium markets. Challenges Weather risks: • Unseasonal rains threaten yield & quality. Cost of compliance: • Testing, certifications, and maintaining export standards are expensive. ‘Do or die’ competitiveness: • Farmers must continuously upgrade; otherwise, risk being outcompeted. Equity concern: • Benefits may concentrate in organised collectives like Sahyadri → marginal farmers outside FPCs risk exclusion. Conclusion The India–U.K. FTA is a game-changer for Indian grape farmers, especially in Nashik. It transforms the sector from fragmented, low-margin domestic sales to globally competitive, high-value exports. The success hinges on collective farming models, adherence to strict quality norms, and weather resilience. If replicated for other horticultural crops, the FTA could catalyze a structural shift in Indian agriculture, moving smallholders towards global value chains. Rain and Flash Floods in J&K Basics Scale of Impact (2010–2022) • 2,863 extreme weather events in J&K. • 552 deaths reported. • 1,942 instances of thunderstorms, heavy rain (≥65–115 mm in 24 hrs). • 186 flash floods, 110 cloudbursts, 111 landslides. Recent Example • August 2024: Flash flood at Kishtwar district (Chasoti village), >50 missing. Geographic Vulnerability • J&K: Mountainous terrain + fragile ecosystem. • Heavy dependence on glaciers, rivers, slopes. Drivers • Rising global temperatures. • Changing western disturbances. • Himalayan topography. Relevance : GS 1(Geography) ,GS 3(Disaster Managements) Climate Change & Rising Temperatures Warmer atmosphere = more water vapour • Each 1°C rise → atmosphere holds 7% more moisture. • Leads to more intense precipitation, sudden downpours, flash floods. Glacial melt • Rising temps shrinking Himalayan glaciers. • Formation of unstable glacial lakes → prone to sudden outburst floods (GLOFs). Changing Nature of Western Disturbances (WDs) Traditionally winter (Dec–March), now extending to summer. Global warming shifting intensity and frequency. Moisture-laden WDs from Mediterranean, Black Sea, Caspian, Arabian Sea → now stronger. Heavier rainfall + flash floods in J&K Himalayas. Topographical Factors Steep, fragile slopes in Himalayas intensify vulnerability. Narrow valleys funnel rainwater → higher flood intensity. Deforestation, unregulated construction, and loose soil increase landslides. Nature of Events (2010–2022 data) Cloudbursts: Sudden heavy rainfall (>100 mm/hour), 110 incidents. Flash floods: 186 incidents, high fatalities. Landslides: 111 incidents. Heavy snow: Only 42 events, but high risk when followed by rain. Human Impact 552 deaths in 12 years due to extreme weather. Loss of homes, farmland, infrastructure. Migration pressures, economic instability for locals. Expert Views “Do or die” situation: Need climate-adaptive planning. Rising Arabian Sea temperatures intensify western disturbances. Local vulnerability amplified by poor planning, haphazard construction, lack of preparedness. Conclusion Flash floods in J&K are no longer isolated events, but part of a larger climate change–driven pattern. Rising temperatures, glacial melt, and shifting western disturbances make the region acutely vulnerable. Mitigation requires: • Early warning systems. • Climate-resilient infrastructure. • Strict land-use regulation. • Regional cooperation on Himalayan glacial monitoring. Civil and criminal cases: what they are, how they differ Basics Civil Law • Deals with disputes between private individuals/organisations. • Goal: Compensation/rights enforcement, not punishment. • Filed by plaintiff against defendant. • Standard of proof: Preponderance of probabilities (more likely than not). • Examples: Contract breaches, family disputes, property cases, divorce. Criminal Law • Deals with offences against society/state. • Goal: Punish offender + deter crimes. • Prosecution initiated by state against accused. • Standard of proof: Beyond reasonable doubt. • Examples: Theft, murder, assault, fraud, cheating. Overlap • Some acts may give rise to both civil & criminal cases (e.g., breach of trust = civil wrong + cheating = criminal offence). Relevance : GS 2(Polity , Constitution ) Purpose and Objectives Civil Law: • Seeks redressal, compensation, restoration of rights. • Focus on remedy, not punishment. Criminal Law: • Seeks deterrence and justice for society. • Protects social order, punishes misconduct. Burden & Standard of Proof Civil: Lower threshold → Preponderance of probabilities. Criminal: Higher threshold → Beyond reasonable doubt. Reflects seriousness of criminal sanctions (imprisonment, execution, etc.). Proceedings & Role Civil case: Plaintiff vs. Defendant. Criminal case: State vs. Accused (prosecution vs. defence). Civil disputes → settled through negotiation, mediation, or compensation. Criminal disputes → involve police investigation, trial, sentencing. Length & Delays in Indian Context Civil suits: • Avg. 4.91 years for disposal. • Execution petitions to enforce decrees → ~3.97 years. Criminal cases: • Bail applications in Sessions Court → ~6.12 months. • Serious criminal offences → ~4.65 years. • Magisterial criminal cases (punishment <3 years) → ~2.45 years. Problem: Civil matters often dragged deliberately, as parties prefer litigation over out-of-court settlement. Criminal matters: Faster on paper, but still face adjournments and backlog. Judicial Observations (as per article) Supreme Court criticised misuse of criminal proceedings for civil disputes (e.g., breach of trust in commercial transactions). Warned against harassment by converting civil disputes into criminal cases. Larger Implications Misuse of Criminal Law: • Adds burden on judiciary, police, and prisons. • Harasses individuals in essentially private disputes. Civil Justice System: • Slow and cumbersome → discourages people from using civil remedies. • Pushes parties toward criminal litigation to exert pressure. Need for Reform: • Speedy dispute resolution mechanisms (e.g., mediation, Lok Adalats). • Strict judicial scrutiny before admitting criminal complaints in civil disputes. • Balance between individual rights and state’s role in justice. Conclusion Civil law ensures private justice, criminal law ensures public order. In India, blurred lines and judicial delays complicate their functioning. True justice requires speed, clarity in classification, and prevention of misuse of criminal law in purely civil disputes.