CURRENT AFFAIRS
07 June, 2025
1. REGULATION UNDER ARTICLE 240 AND LADAKH’S DEMAND FOR 6TH SCHEDULE –
• To address the long-standing demands for job reservations, language recognition, and political representation of Ladakh’s people, the Centre has issued few regulations for Ladakh under Article 240, rather than granting the Sixth Schedule status as was widely requested.
• Article 240 empowers the President to make regulations for the peace and good governance of certain Union Territories, with these rules having the same force as Acts of Parliament and the power to amend or repeal existing laws.
What are the Demands of the People of Ladakh and the Regulations Notified by the Government?
• Key Demands: After the abrogation of Article 370 in August 2019 and the implementation of the Jammu and Kashmir Reorganisation Act, 2019, Ladakh was designated as a Union Territory without a legislature.
• In response, the Leh Apex Body (LAB) and the Kargil Democratic Alliance (KDA) have been advocating for Ladakh’s inclusion in the Sixth Schedule of the Constitution to safeguard their land, jobs, and cultural identity.
Key Demands Included:
• Inclusion under the Sixth Schedule for constitutional protection.
• Land ownership restrictions to prevent outsider influx.
• Legislative Assembly for representative governance.
• As an alternative, the Union government proposed extending Article 371-like protections to the region.
2. ACCORDING TO THE RESERVE BANK OF INDIA (RBI), INDIA’S NET FOREIGN DIRECT INVESTMENT (FDI) CRASHED FROM USD 10.1 BILLION IN 2023–24, AND JUST USD 0.4 BILLION IN 2024–25 –
• The sharp decline in net FDI is mainly due to increased repatriation and disinvestment by foreign firms, totaling USD 51.5 billion in 2024-25, coupled with a rise in Outward FDI (OFDI) by Indian companies.
What is Foreign Direct Investment?
• About: FDI refers to investment made by a person residing outside India through capital instruments in either an unlisted Indian company or in at least 10% of the post-issue paid-up equity capital (on a fully diluted basis) of a listed Indian company.
• It is typically a long-term investment and mainly represents a non-debt capital flow.
• FDI Routes: Under the FDI Scheme, non-residents can invest in shares, fully convertible debentures, and preference shares of Indian companies through two routes:
• Automatic Route: An overseas investor is only required to inform the RBI after the investment is made.
• E.g., Agriculture & Animal Husbandry, Air-Transport Services, Auto-components, Automobiles, Biotechnology (Greenfield) etc.
• Government Approval Route: A foreign investor must obtain prior approval from the relevant Ministry or department before proceeding.
• Banking & Public Sector, Broadcasting Content Services, Food Products Retail Trading, Uploading/Streaming of ‘News & Current affairs’ through digital media etc.
3. PM MODI TO ATTEND G-7 SUMMIT IN CANADA, SIGNALING THAW IN BILATERAL TIES –
• PM Modi has officially accepted Canadian PM Mark Carney’s last-minute invitation to attend the upcoming G-7 Summit in Alberta, Canada, on short notice. The development is highly significant given the recent low point in India-Canada relations and indicates a potential reset in diplomatic ties following political transitions and ongoing international dialogues.
Key Highlights
• Event: G-7 Summit 2025
• Location: Kananaskis, Alberta, Canada
• Date: Next week (Mid-June 2025)
• Invited by: Canadian PM Mark Carney
• First India-Canada visit by PM Modi since 2015
• Theme of visit: Resetting bilateral relations with “renewed vigour”
4. UDHAMPUR-SRINAGAR-BARAMULLA RAIL LINK FULLY OPERATIONAL AFTER 28 YEARS –
• On June 6, 2025, PM Narendra Modi inaugurated the final phase of the USBRL project — the Sangaldan to Katra section, making the entire rail line fully operational.
• This marked the completion of a project first approved in 1997, aimed at connecting Kashmir with the rest of India via railway. The last link included iconic engineering marvels like the Chenab Bridge, Anji Bridge, and 12.75 km Pir Panjal tunnel.
Project Timeline and Phased Commissioning
• 1997: USBRL project sanctioned.
• April 2005: First segment (Jammu–Udhampur, 55 km) completed.
• October 2008: Anantnag–Mazhom section (68 km) inaugurated.
• February 2009: Mazhom–Baramulla section (32 km) operational.
• October 2009: Anantnag–Quazigund extended.
• June 2013: Quazigund–Banihal section opened; included the Pir Panjal Tunnel.
• July 2014: Udhampur–Katra line inaugurated.
• February 2024: Banihal–Sangaldan section operational.
• June 6, 2025: Final phase, Sangaldan–Katra, inaugurated by PM Modi.
Engineering Marvels
• Chenab Bridge: World’s highest railway bridge (359 m above riverbed).
• Anji Bridge: India’s first cable-stayed rail bridge.
• Pir Panjal Tunnel: India’s longest rail tunnel at 12.75 km.
• Multiple long tunnels and difficult terrain were tackled using advanced technologies and manpower.
5. STARLINK GETS GREEN LIGHT TO LAUNCH SATELLITE INTERNET IN INDIA –
• Elon Musk’s Starlink received the GMPCS licence from India’s Department of Telecommunications. This approval enables Starlink to offer satellite broadband services in India, subject to security and technical compliance. The company is set to receive trial spectrum in 15–20 days for demonstration. It marks a key step in India’s growing satellite communication (satcom) industry.
Key Developments
• Starlink has been granted the GMPCS licence, the final regulatory step to operate in India.
• The approval follows the company’s agreement to India’s stringent security protocols.
• Trial spectrum will be allocated shortly to allow demonstration of service compliance.
Competing Satcom Players
• OneWeb (Airtel-backed) – Received GMPCS licence in August 2021.
• Jio Satellite Communications – Got the licence in March 2022.
• Amazon’s Project Kuiper – Still awaiting approvals from DoT.
MCQ QUIZ
Q1. Which state government has established the Greater Flamingo Sanctuary ?
a) Karnataka
b) Maharashtra
c) Tamil Nadu
d) Kerala
Q2. Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme managed by which ministry ?
a) Ministry of Commerce and Industry
b) Ministry of Micro, Small and Medium Enterprises
c) Ministry of Finance
d) Ministry of Urban Development
Q3. The Ministry of Social Justice and Empowerment launched the Waste Picker Enumeration App under which scheme ?
a) NAMASTE Scheme
b) Swachh Bharat Mission
c) AMRUT Scheme
d) Green India Mission
Q4. Consider the following statements regarding the core functions of NITI Aayog:
1. NITI Aayog is primarily responsible for the allocation of financial resources to State Governments, similar to the erstwhile Planning Commission.
2. It serves as a policy think tank for the Government of India, offering strategic and technical advice.
3. One of its key roles is to foster cooperative federalism by involving States in the policy-making process.
3. NITI Aayog has the authority to approve the annual budgets of Central Ministries.
How many of the above statements is/are correct ?
a) Only one
b) Only two
c) Only three
d) All four
Explanation-
• Statement 1 is incorrect. NITI Aayog replaced the Planning Commission, but a key difference is that NITI Aayog does not have powers to allocate funds; this role is now largely with the Finance Ministry. It is a policy think tank.
• Statement 2 is correct. The core function of NITI Aayog is to act as a policy think tank for the Government of India.
• Statement 3 is correct. NITI Aayog aims to foster cooperative federalism, bringing States together to align national development goals, as seen in the functions of its Governing Council.
• Statement 4 is incorrect. The approval of annual budgets of Central Ministries is the prerogative of the Parliament, with the Ministry of Finance playing a central role in its preparation and presentation. NITI Aayog provides policy inputs but does not approve ministerial budgets.
Q5. Consider the following statements regarding the consequences and conditions of FATF listing:
1. Being placed on the FATF ‘Grey List’ automatically triggers full-fledged financial sanctions and a complete cutoff from international financial markets.
2. A nation can be included in the FATF ‘Black List’ solely for having minor strategic deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) framework, even if it is committed to corrective actions.
3. Countries on the FATF ‘Grey List’ may experience reduced foreign direct investment and a loss of developmental aid from international financial institutions like the IMF and World Bank.
How many of the above statements is/are correct ?
a) Only one
b) Only two
c) All three
d) None
Explanation-
• Statement 1 is incorrect. Being on the FATF ‘Grey List’ signifies that a jurisdiction is under increased monitoring and has committed to resolving strategic deficiencies. It leads to enhanced scrutiny but does not automatically trigger full-fledged financial sanctions or a complete cutoff from international markets. Those severe consequences are associated with the ‘Black List’.
• Statement 2 is incorrect. The ‘Black List’ (High-Risk Jurisdictions) is for nations with severe and ongoing non-compliance. Minor strategic deficiencies, especially with a commitment to corrective actions, would more likely lead to a ‘Grey List’ placement. The ‘Black List’ is for more serious and persistent failures.
• Statement 3 is correct. Nations on the ‘Grey List’ face consequences such as reduction in foreign investment and credit rating, and loss of developmental aid from institutions like the IMF, World Bank, and ADB. This is due to the reputational damage and perceived higher risk associated with their financial systems.
Answer Key
1 | 2 | 3 | 4 | 5 |
C | B | A | B | A |