CURRENT AFFAIRS 04 September, 2025

CURRENT AFFAIRS 04 September, 2025

1. GIG WORKERS: THE INVISIBLE WORKFORCE –

• India’s gig and platform economy is rapidly expanding, projected to grow from 1 crore workers in 2024–25 to 2.35 crore by 2029–30. While it offers flexibility and new opportunities, gig workers perform a significant amount of invisible labor, yet face low wages, job insecurity, and pressures from algorithm-driven management.

What is the Gig Economy?

• About: The gig economy, as defined by the World Economic Forum (WEF), involves the exchange of labour for money between individuals or companies via digital platforms that actively connect providers with customers on a short-term and payment-by-task basis.
• According to the Code on Social Security, 2020, a gig worker is “a person who performs work or participates in a work arrangement and earns from such activities outside the traditional employer-employee relationship.”

What are the Growth Drivers of the Gig Economy?

• Expanding Digital Access: Under Digital India, internet connections in India rose from 25.15 crore in 2014 to 96.96 crore in 2024, with 85.5% of households owning a smartphone. This surge in digital access has fueled the growth of the gig economy by connecting workers and employers.
• E-Commerce and Startup Boom: The rise of online businesses and startups creates demand for gig workers in logistics, delivery, marketing, and content creation.
• Urban Demand for Convenience: Consumers increasingly expect fast services, fueling opportunities in food delivery, ridesharing, and customer support.
• Availability of Low-Cost Labor: Rising unemployment and a surplus of semi-skilled workers drive many to accept gig work as a source of income.
• Changing Work Preferences: Younger generations value flexibility, remote work, and project-based engagements, making gig roles more appealing.

2. GST 2.0 WITH NEXT-GENERATION REFORMS –

• The 56th Goods and Services Tax (GST) Council, unveiled GST 2.0 with next-generation reforms to make the tax regime citizen-centric, boost agriculture, health, manufacturing, and improve ease of doing business.
• The changes in GST rates on services will be implemented with effect from 22nd September 2025.

What are the Key Tax Reforms Under GST 2.0?

• Simplified GST Structure: GST 2.0 replaces four GST slabs (5%, 12%, 18%, and 28%) with a two-slab system (5% (merit rate) for essential items and 18% (standard rate) for others), plus a 40% demerit rate for luxury, sin, and demerit goods like tobacco and pan masala.
• Tax Relief for the Essential Goods: Full GST exemption on individual life and health insurance policies. Essential goods such as Ultra-High Temperature (UHT) milk, paneer, and Indian breads now carry nil GST.
• Consumer Goods: GST on small cars, TVs, air conditioners, cement, and auto parts has been reduced from 28% to 18%. GST on renewable energy devices has been reduced from 12% to 5%.
• These cuts are expected to stimulate manufacturing, promote green energy adoption, and boost domestic demand.
• Medical and Health Devices: GST on 33 lifesaving drugs has been reduced from 12% to nil. GST on three critical drugs used for cancer and rare diseases has been reduced from 5% to nil, strengthening healthcare access.
• Support for Agriculture and Rural Sectors: Machinery like tractors, harvesters, and composters: GST reduced from 12% to 5%.
• Fertilizer inputs such as sulphuric acid, nitric acid, and ammonia: GST reduced from 18% to 5%.
• Labour-intensive goods like handicrafts, marble, and leather items: GST reduced from 12% to 5%.

3. EXERCISE MAITREE-XIV –

• The 14th edition of Exercise MAITREE commenced on 1 September 2025 at the Joint Training Node in Umroi, Meghalaya. This bilateral military exercise between India and Thailand runs until 14 September 2025. It aims to enhance cooperation, interoperability and mutual understanding between the Indian Army and the Royal Thai Army. The exercise reflects growing defence collaboration in the Indo-Pacific region.

Background

• Exercise MAITREE began in 2006 as a key military-to-military exchange programme. It promotes joint tactical capabilities and trust. The exercise focuses on counter-terrorism and regional security challenges. Both nations share a commitment to peace, stability and security in South and Southeast Asia.

Participating Forces

• India is represented by a battalion of the Madras Regiment with 120 personnel. The Madras Regiment is known for expertise in counter-insurgency and jungle warfare. Thailand contributes 53 personnel from the 1st Infantry Battalion, 14th Infantry Brigade. This unit specialises in light infantry tactics and internal security.

4. SCO CONDEMNS PAHALGAM TERROR ATTACK –

• The Shanghai Cooperation Organisation (SCO) leaders issued a joint declaration in September 2025 strongly condemning terrorism. The statement explicitly mentioned the April 22 Pahalgam attack in Jammu and Kashmir, which killed 26 people.
• This marks development as earlier defence minister-level meetings had avoided mentioning the attack. The declaration also condemned terrorist attacks in Pakistan’s Balochistan region. The move reflects evolving geopolitics and China’s tentative shift in its stance towards terrorism-related issues involving India and Pakistan.

SCO’s Declaration

• The SCO leaders’ statement condemned terrorism in all forms. It expressed condolences to victims of the Pahalgam attack. The declaration also mentioned the Jaffer Express hijacking and the Khuzdar school bus bombing in Pakistan. Earlier, India had pushed for explicit references to terrorism and cross-border threats in SCO documents.
• Defence Minister Rajnath Singh had refused to sign the June 2025 defence ministers’ statement due to Pakistan’s objections. The leaders’ summit in Tianjin marked a breakthrough with the clear mention of Pahalgam.

5. IIT-MADRAS TOPS NIRF RANKINGS 2025 FOR SEVENTH CONSECUTIVE YEAR –

• The National Institutional Ranking Framework (NIRF) 2025, released by the Ministry of Education on September 4, has once again reaffirmed IIT-Madras as India’s leading educational institution.
• For the seventh year in a row, IIT-Madras secured the top position in the overall category, followed by the Indian Institute of Science (IISc) Bengaluru and IIT-Mumbai. The 10th edition of the rankings highlighted excellence across 17 categories, including engineering, management, law, medicine, agriculture, research, and sustainable development.

Highlights of NIRF Rankings 2025

• Top Overall Institutions
• 1st Place: IIT-Madras
• 2nd Place: IISc Bengaluru
• 3rd Place: IIT-Mumbai

MCQ QUIZ

Q1.   What is the name of India’s first fully indigenous 32-bit microprocessor launched at Semicon India 2025 ?

1. a) Aryabhata 3201
2. b) Chandrayaan 3201
3. c) Bhaskara 3201
4. d) Vikram 3201

Q2.   Why did the Department of Posts suspend the booking of all categories of mail to the USA ?

1. a) Rising postage costs
2. b) Trade restrictions by the USA
3. c) Inability of carriers to transport U.S.-bound mail and lack of defined regulatory mechanisms
4. d) Security concerns regarding international parcels

Q3.   As per the report, India’s Gross Domestic Product (GDP)growth for Q1 FY 2025-26 stood at 7.8%. According to projections, by which year is India expected to achieve a $5 trillion economy ?

1. a) 2025
2. b) 2027
3. c) 2029
4. d) 2028

Q4.   With reference to the recent move by the Maharashtra government regarding the Maratha reservation issue, consider the following statements:

1. The government has decided to implement the Hyderabad Gazette to support the classification of Marathas as Kunbis.
2. The Hyderabad Gazette was issued during British rule across Bombay Presidency.
3. Recognizing Marathas as Kunbis would make them eligible for reservation under the OBC category.

          Which of the statements given above is/are correct ?

1. a) 1 and 2 only
2. b) 1 and 3 only
3. c) 2 and 3 only
4. d) 1, 2 and 3

Explanation-

• Statement 1 – Correct: The Maharashtra government agreed to implement the Hyderabad Gazette.
• Statement 2 – Incorrect: The Gazette was issued by the Nizam of Hyderabad, not under British Bombay Presidency.
• Statement 3 – Correct: If Marathas are officially recognized as Kunbis, they become eligible for OBC reservation benefits.

Q5.   With reference to semiconductors and the India Semiconductor Mission (ISM), consider the following statements:

1. Semiconductors are materials that can behave as both conductors and insulators.
2. The India Semiconductor Mission (ISM) was launched in 2021 with the aim of establishing a self-reliant semiconductor and display manufacturing ecosystem in India.
3. The Design-Linked Incentive (DLI) scheme under ISM focuses on promoting large-scale chip manufacturing facilities in India.
4. Semiconductors are crucial not only for consumer electronics but also for sectors like defense, space, and healthcare.

          Which of the statements given above are correct ?

1. a) 1, 2 and 4 only
2. b) 1, 3 and 4 only
3. c) 2, 3 and 4 only
4. d) 1, 2, 3 and 4

Explanation-

• Statement 1: Correct
• Semiconductors have the unique property of behaving as both conductors and insulators, enabling precise control of electrical signals — this is why they are vital to electronic circuits.
• Statement 2: Correct
• The India Semiconductor Mission (ISM) was launched in December 2021 with a budget of ₹76,000 crore to create a self-reliant semiconductor and display ecosystem.
• Statement 3: Incorrect
• The Design-Linked Incentive (DLI) scheme under ISM does not promote large-scale manufacturing directly.
• It is specifically aimed at supporting chip design, including ICs, SoCs, and other components — especially by startups and domestic companies.
• Statement 4: Correct
• Semiconductors are essential not just for smartphones and computers but also for defense systems, space technology, medical equipment, and more — forming the backbone of digital and automated systems.

Answer Key