CURRENT AFFAIRS
26 April, 2025
1. IMF WORLD ECONOMIC OUTLOOK: HIGH ECONOMIC UNCERTAINTY SURPASSING COVID-ERA LEVELS –
• The International Monetary Fund (IMF) has recently published its World Economic Outlook (WEO).
International Monetary Fund (IMF)
• The IMF is a global organization that promotes economic stability and cooperation among its 190 member countries
• It was established in 1944 in the aftermath of the Great Depression of the 1930s
• Key Reports: Global Financial Stability Report and World Economic Outlook
About World Economic Outlook (WEO)
• The World Economic Outlook (WEO) is the flagship report of the International Monetary Fund that analyzes global economic developments, prospects, and policy challenges.
• It offers economic forecasts and serves as a key tool for global economic surveillance and policy coordination.
• It is usually published twice a year in the months of April and October, with updates in between.
2. THE MELTING OF ARCTIC ICE IS OPENING UP THE NORTHERN SEA ROUTE (NSR) , PROVIDING NEW OPPORTUNITIES IN THE REGION ALONG WITH THE THREAT TO THE ENVIRONMENT –
Climate Impact and Changing Arctic Sea
• Breaching of Climate Thresholds: In 2024, global temperatures temporarily exceeded the 1.5°C limit above pre-industrial levels, a possible long-term breach of the Paris Agreement goals.
• Accelerated Ice Loss: Arctic sea ice is shrinking at a rate of 12.2% per decade (September data) compared to 1981–2010 averages as per NASA, signaling an urgent environmental transformation.
• Climate Feedback on India: Arctic ice melt has cascading effects on India’s climate patterns, particularly the monsoon, with implications for agriculture and food security.
• Opening of NSR: It is seen as a critical shortcut for shipping between Europe and Asia, potentially reshaping global trade flows.
• It will allow faster cargo movement and reduce freight costs, posing strategic and economic advantages.
India’s Potential in the Arctic Region
• Global Trade Realignments: Rising geopolitical tensions, especially with the U.S.-China friction is prompting nations to diversify trade routes.
• The Arctic has emerged as a strategic alternative.
3. KAILASH MANSAROVAR YATRA 2025: RESUMPTION AFTER FIVE YEARS –
• The Kailash Mansarovar Yatra (KMY) is a significant annual pilgrimage symbolizing deep religious and cultural ties between India and China. It holds immense importance for Hindus, Buddhists, Jains, and followers of the Bon religion.
• Circumambulating Mount Kailash is believed to bring spiritual merit, and bathing in Lake Mansarovar is thought to cleanse one’s sins. The pilgrimage was suspended in 2020 due to the COVID-19 pandemic and border tensions.
• Its resumption after five years marks a positive development in religious tourism and bilateral cooperation.
4. INDIA TO ALLOW 49% FOREIGN STAKE INVESTMENT IN NUCLEAR POWER –
• India is considering allowing foreign companies to take up to a 49% stake in its nuclear power plants a major policy shift for one of the country’s most protected sectors.
• This initiative is part of a larger strategy to boost clean energy production, lessen dependence on coal, and achieve ambitious carbon emission reduction goals.
• To support this move, the government is working on amending key nuclear legislations, with the objective of opening the sector to both foreign investors and domestic private firms by the monsoon session of Parliament in July 2025.
5. CHINA HAS TESTED A REVOLUTIONARY TYPE OF HYDROGEN BOMB –
• China has tested a revolutionary type of hydrogen bomb that functions without traditional fissile materials like uranium or plutonium.
• Instead, it uses advanced fusion techniques such as magnesium hydride-based fusion, raising serious concerns about arms control, international law, and global security.
• This advancement could potentially redefine how nuclear weapons are perceived and regulated in modern warfare.
MCQ QUIZ
Q1. Which state is the host of Bharat Summit 2025 ?
a) Telangana
b) Gujarat
c) Tamil Nadu
d) Kerala
Q2. Which protected area of Odisha has been declared the 107th National Park of India ?
a) Nandankanan
b) Satkosia
c) Simlipal
d) Gahirmatha
Q3. What is the name of the military exercise conducted by the Indian Air Force following the Pahalgam terror attack ?
a) Exercise Vayu Shakti
b) Exercise Aakraman
c) Exercise Shourya
d) Exercise Thunder Strike
Q4. Consider the following developments regarding India’s Fintech ecosystem:
1. The Unified Payments Interface (UPI) has expanded to international markets and integrated with credit cards.
2. The Digital Lending Market in India is expected to reach over USD 500 billion by 2030.
3. Embedded Finance has no significant role in India’s Fintech growth.
4. Blockchain is primarily used only for cryptocurrency in India.
How many of the above statements are correct ?
a) Only one
b) Only two
c) Only three
d) All four
Explanation-
• Statements 1 and 2 are correct. UPI has indeed expanded into international markets and integrated with credit cards, and digital lending is projected to grow significantly by 2030.
• Statement 3 is incorrect—embedded finance plays a significant role and is expected to unlock USD 25 billion by 2030. Statement 4 is incorrect—India is using blockchain for secure financial transactions beyond cryptocurrencies, including the pilot launch of the Digital Rupee. Therefore, only two statements are correct.
• This has been a persistent issue in India-China relations. Although a hydrological data-sharing mechanism resumed in 2025, trust remains limited.
• The absence of a treaty adds to India’s strategic insecurity, especially in the face of climate-induced water stress.
Q5. Which of the following best explains the strategic impact of India’s suspension of the Indus Waters Treaty in April 2025 ?
a) It allows Pakistan to claim water rights under the International Court of Justice
b) It completely revokes the Treaty’s legal validity
c) It enables India to reconfigure its river usage without legal exit
d) It initiates a UN-mandated water-sharing framework in South Asia
Explanation-
• India’s suspension of the IWT is strategic rather than legal. Since the Treaty has no exit clause, India cannot formally withdraw, but the suspension allows it to explore broader usage of Western Rivers—e.g., storage, dam operations—while ceasing data sharing with Pakistan.
• This maneuver avoids violating international law yet signals a shift in diplomatic posture. The move doesn’t nullify the Treaty but allows India to apply pressure while reevaluating terms. Options (a), (b), and (d) are either incorrect or irrelevant to the current framework.
Answer Key
1 | 2 | 3 | 4 | 5 |
A | C | B | B | C |