CURRENT AFFAIRS 29 July, 2025

1. OUTLOOK OF INDIAN ECONOMY –

• The Reserve Bank of India’s article titled “State of the Economy” offers a cautiously optimistic view of the Indian economy, amid global and trade-related uncertainties.

What is India’s Present State of the Economy-

• Inflation: Retail inflation (measured by the Consumer Price Index (CPI) fell from 5.4% in 2023–24 to 2.1% in June 2025, the lowest since January 2019.
• In June 2025, core inflationrose to 4.4% due to costlier personal care, education, and recreation, while overall inflation eased more sharply in rural (1.7%) than urban areas (2.6%).
• Balance of Payments: India recorded a current account surplus of 1.3% of Gross Domestic Product (GDP) in Q4 2024–25. 
• India’s Current Account Deficit  narrowed to 0.7% of GDP in FY24. 
• Fiscal Developments: Gross fiscal deficit (GFD) stood at 0.8% of its 2025-26 budget estimates, a significant improvement from 3.1% in 2024-25
• Till May 2025, the Centre received 21% of Budget Estimates (BE) 2025-26 of Total Receipts. Total expenditure stood at 14.7% of FY26 BE, with a notable focus on capital expenditure.
• Trade Performance: India’s overall trade deficit narrowed nearly 30% in May 2025, mainly due to falling oil prices and strong services exports. 

2. WHAT ARE BHISHM CUBES ? –

• India recently gifted two BHISHM cubes to the Maldives on its 60th Independence Day. This gesture marks India’s regional cooperation and healthcare diplomacy in the Indian Ocean. The BHISHM cubes are portable medical units designed for rapid emergency response. They enhance disaster preparedness in vulnerable island nations like the Maldives.

BHISHM Initiative and Its Purpose

• BHISHM stands for Bharat Health Initiative for Sahyog, Hita & Maitri. It is part of India’s Aarogya Maitri mission launched in 2024. The initiative aims to provide timely healthcare support in disaster-hit and developing countries. The cubes are self-contained medical units ready for quick deployment in emergencies and conflict zones.

3. INDIA’S GIG ECONOMY GROWTH –

• India’s gig economy has expanded rapidly in recent years. By FY 2024–25, gig workers numbered about 12 million, up from 7.7 million in 2020–21. This sector now comprises over 2% of the total workforce. Growth is driven by digital connectivity, urbanisation, and a shift towards flexible work. This change marks a structural shift in India’s labour market.

Defining Gig Workers

• Gig workers are individuals earning income without formal employment benefits. They include cab drivers, food delivery personnel, home cleaners, and other service providers working through digital platforms.
• Unlike traditional informal workers, gig workers operate in a semi-structured system where tasks and payments are documented. This formalisation brings transparency and some recognition to their work.

4. INDIA’S FIRST HINDI-MEDIUM MBBS COLLEGE TO OPEN –

• In a landmark step towards promoting regional language education in medical studies, Jabalpur in Madhya Pradesh is set to become home to India’s first Hindi-medium MBBS college. The institution, expected to commence in the 2027–28 academic session, will offer medical education, examinations, and clinical training entirely in Hindi, making it a historic move in the country’s medical education system.

The Historic Decision

• Approval in University Executive Council Meeting
• The proposal to set up the Hindi-medium MBBS college was approved in the executive council meeting of Madhya Pradesh Medical University. Officials confirmed that a Detailed Project Report (DPR) will soon be prepared and submitted to the state government for final clearance.
• Once approved at the state level, the project will be forwarded to the National Medical Commission (NMC) for mandatory permissions.

5. FRANCE TO RECOGNISE PALESTINIAN STATE IN 2025 –

• France has announced it will officially recognise the State of Palestine in September 2025. This decision marks the first time a G7 nation will grant formal recognition. The announcement is expected to be made during the UN General Assembly session in New York. French President Emmanuel Macron emphasised the urgent need to end the war in Gaza, secure humanitarian aid, and achieve a lasting peace in the Middle East.

Context of Recognition

• France’s recognition follows escalating conflict in Gaza after Hamas’s attack on Israel in October 2023. Macron called for an immediate ceasefire, the release of hostages, and demilitarisation of Hamas.
• He stressed the importance of rebuilding Gaza and ensuring the viability of a Palestinian state that accepts Israel’s security. Palestinian leaders welcomed the move as support for their right to self-determination. Israel and its key allies, including the US and the UK, strongly opposed the decision.

             MCQ QUIZ

Q1.  Where was the Indian Army’s military drill, Exercise Drone Prahar, conducted ?

1. a) Arunachal Pradesh
2. b) Sikkim
3. c) Assam
4. d) Meghalaya

Q2.  SPARSH (System for Pension Administration Raksha) is an initiative of which ministry ?

1. a) Ministry of Law and Justice
2. b) Ministry of Social Justice and Empowerment
3. c) Ministry of Defence
4. d) Ministry of Home Affairs

Q3.  India has recently resumed issuing tourist visas to citizens of which country after a five-year suspension ?

1. a) Japan
2. b) South Korea
3. c) Vietnam
4. d) China

Q4.  Which of the following is/are considered major contributors to coral reef decline in the Lakshadweep Archipelago ?

1. Repeated marine heatwaves
2. Ocean acidification due to increased CO₂
3. Unsustainable tourism
4. Rising sea surface temperatures linked to climate change

          Select the correct answer using the code below:

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

Explanation-

• Marine heatwaves, climate change, and ocean acidification are major contributors to coral bleaching and reef degradation.
• While unsustainable tourism can contribute to coral stress, it was not identified as a major driver as per recent study.

Q5.  With reference to India-Maldives relations, consider the following statements:

1. India and Maldives share both land and maritime borders.
2. India was one of the first countries to recognize the Maldives after its independence in 1965.
3. The Greater Malé Connectivity Project is India’s largest infrastructure project abroad.

          Which of the statements given above is/are correct ?

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

Explanation-

• Statement 1 is incorrect: India and Maldives do not share a land border; they share a maritime border only.
• Statement 2 is correct: India recognized Maldives immediately after its independence in 1965.
• Statement 3 is correct: The Greater Malé Connectivity Project (GMCP), funded by India, is India’s largest overseas infrastructure initiative to date.

Answer Key