Current Context: Finance Minister Nirmala Sitharaman reviewed progress at GIFT City’s IFSC, urging swift reforms to enhance global competitiveness and attract foreign capital via regulated channels.

 ABOUT GIFT City – IFSC

• A Special Economic Zone launched in April 2015 in Gandhinagar–Ahmedabad, Gujarat; India’s first operational greenfield smart city and international financial services centre.
• Governed by the International Financial Services Centres Authority (IFSCA), established under the IFSC Act, 2019; a unified regulator for financial institutions and products.
• Focus Areas: Banking, capital markets, insurance, asset/fund management, fintech, international bullion exchange, aircraft & ship leasing.
• Tax Incentives: 100% tax exemptions for up to 10 years, relaxed regulations for fund transfers, and SEZ-specific duty breaks.
• Achievements: Over 700 firms (including PSUs, banks, multinationals) onboarded; ranked 46th in Global Financial Centres Index, 40th in fintech, top in reputational advantage (GFCI‑37, 2025).

Current Context: In late June 2025, US Health Secretary Robert F. Kennedy Jr. announced halting US funding to Gavi, citing vaccine safety concerns and alleged suppression of alternative viewpoints during COVID-19.

About Gavi?

• A public–private global health partnership established in 2000, headquartered in Geneva, Switzerland.
• Core partners include WHO, UNICEF, World Bank, Gates Foundation, governments, NGOs, vaccine manufacturers, and civil society .
• Mission: Enhance equitable, sustainable vaccine access in low‑income countries.

Impact & Achievements

• Over 1 billion children vaccinated since inception .
• 8 million+ future deaths prevented .
• Covered 78 low-income countries, halving child mortality in those nations

Current Context: On June 26, 2025, at the Shanghai Cooperation Organisation (SCO) Defence Ministers’ meeting in Qingdao, India refused to endorse the joint statement due to omitted terrorism references—primarily the April 22 Pahalgam terror attack—blocked by “one particular country”.

ABOUT SCO SITUATION

• Issue: India insisted on acknowledging terrorism (especially Pahalgam attack) in the joint communique. China, Pakistan, and another member opposed this, resulting in a lack of consensus.
• India’s Stand: Emphasized “One Earth, One Family, One Future” civilizational ethos, calling for explicit terrorist references and accountability for state-sponsored support.

About SCO

• A political, economic, security union of 10 Eurasian countries: China, Russia, India, Pakistan, Iran, and the central Asian states.
• Established in 2001 (originating from the “Shanghai Five” in 1996), expanded to full membership in 2017; Iran in 2023 and Belarus in 2024.
• Represents ~42% of the world’s population, ~24% of global landmass, and ~23% of world nominal GDP.

Current Context: At its 196^th meeting, the Employees’ State Insurance Corporation (ESIC) approved the revival of the SPREE scheme from July to December 2025 to broaden employer and employee registration .

ABOUT SPREE SCHEME

• Full name: Scheme to Promote Registration of Employers and Employees.
• First introduced in 2016, it successfully registered 88,000+ employers and 2 million (1.02 crore) employees under the ESI Act
• Renewed Version (2025):
• Open window from July 1 to Dec 31, 2025.
• Objective: Expand ESI coverage by enrolling:
• Unregistered employers,
• Left-out employees (including contractual and temporary staff).
• Coverage Mode: Upon registration, coverage applies from the date of registration or self-declaration for employers, and from registration date for employees

Current Context: Recently, the Ministry of Tribal Affairs launched the “Adi Karmyogi” mobile initiative to train tribal-affairs field officers for enhanced grassroots governance.

About Adi karmyogi Programme

• Goal: Build a motivated cadre of citizen-centric officials for tribal development.
• Scale:
• 180+ State-level master trainers,
• 3,000 district trainers,
• 15,000 block-level trainers,
• Aim : to reach 2 million stakeholders and 100,000 tribal villages.
• Approach: Emphasis on attitude change, multi-department coordination, and mentorship for inclusive tribal welfare.

Current Context: Prime Minister Narendra Modi extended warm greetings on June 27, 2025, as millions of devotees thronged Puri for the sacred Rath Yatra procession .

 ABOUT RATH YATRA (CHARIOT FESTIVAL)

• Where & When: Held annually in Puri, Odisha, during Ashadha month (June–July).
• Significance: Marks the ceremonial journey of Lord Jagannath, along with his siblings Balabhadra and Subhadra, to the Gundicha Temple via massive wooden chariots.
• Duration: Festival lasts 1 week; deities return in the “Bahuda Yatra.”
• Devotee Participation: Millions pull the chariots—this public act is considered highly auspicious.
• Cultural Impact: Reinforces spiritual harmony, Odisha’s cultural heritage, and unity among diverse communities.

Observed on 30 June

Aim : to promote awareness about asteroids and planetary defense.

About the Day

• Marks the anniversary of the 1908 Tunguska event in Siberia—the most harmful known asteroid impact in recent history.
• Adopted by the United Nations to educate the public about asteroid hazards and science.

General Studies Paper-2

Context

• South Asia, despite being home to over a fifth of the world’s population having cultural and historical linkages, remains one of the least economically integrated regions in the world.

State of the South Asian Economy

• South Asia, comprising countries like India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, and the Maldives, is home to over 1.8 billion people and represents a combined GDP of around $5 trillion.
  • EU: $18 trillion with only about 5.8% of the global population.
  • NAFTA: $24.8 trillion
• Growth Amidst Divergence: Indian economy has rebounded strongly, driven by robust domestic demand, infrastructure investment, and digital innovation (Economic Survey 2024–25).
  • Bangladesh has maintained steady growth, particularly in its garment exports and remittance inflows.
  • Other nations — such as Sri Lanka and Pakistan — have faced economic crises, high inflation, and debt distress, highlighting the region’s economic divergence.
• Low Regional Trade: Intra-regional trade under the South Asian Free Trade Area (SAFTA) accounts for just 5% to 7% of total trade — among the lowest globally.
  • It is far below the EU (45%), ASEAN (22%) and NAFTA (25%).
  • High tariffs, poor connectivity, and bureaucratic red tape discourage cross-border commerce.
• Trade Gaps: Even countries like Bangladesh (93% unutilized potential), Pakistan (86%), and Afghanistan (83%) have enormous room for economic collaboration.
  • Meanwhile, the region’s trade-to-GDP ratio fell from 47.3% in 2022 to 42.94% in 2024, indicating declining interdependence.
• High Cost of Being Neighbours: Paradoxically, it is more expensive to trade within South Asia than with distant partners:
  • Intra-SAARC trade cost: 114% of goods’ value
  • Trade cost with the U.S.: 109%
  • India-Pakistan trade cost is 20% higher than India-Brazil, despite Brazil being 22x farther
  • ASEAN’s intra-trade cost: 76% — about 40% cheaper than SAARC
• Missed Opportunities: South Asia’s current intra-regional trade among SAARC countries stands at around $23 billion, far below the potential $67 billion, and drastically lower than the estimated $172 billion potential identified by UNESCAP for 2020.

Other Key Challenges

• Geopolitical Tensions & Distrust: Long-standing rivalries — especially between India and Pakistan — have severely undermined regional cooperation initiatives like SAARC and SAFTA.
  • Political disagreements often spill over into economic decision-making.
• Protectionist Trade Policies: High tariffs, restrictive quotas, and non-tariff barriers discourage trade between neighboring countries.
  • Many South Asian economies have prioritized self-reliance over interdependence.
• Poor Connectivity & Infrastructure: Inadequate transport links, cumbersome customs procedures, and underdeveloped logistics networks limit the flow of goods, services, and people across borders.
• Asymmetry Among Member States: India’s economic dominance within the region has created power imbalances, leading to concerns among smaller countries about unequal benefits and influence.
• Weak Institutional Frameworks: Regional cooperation mechanisms often lack teeth, enforcement capability, or political will to deliver on integration promises.
  • SAARC, for instance, has been largely dormant.
• China’s Growing Influence: The growing involvement of external powers, particularly China, has led some South Asian countries to prioritize bilateral engagements over intra-regional collaboration.
• Climate vulnerability: The region is highly susceptible to climate shocks, from floods to heatwaves, which threaten agriculture and livelihoods.

Initiatives By India Supporting South Asian Economy

• Development Partnerships and Lines of Credit: For infrastructure, energy, and capacity-building projects, that include road and rail links with Nepal and Bangladesh, power-sharing agreements, and port development in Sri Lanka and the Maldives.
• Infrastructure and Connectivity Projects: Projects like the India-Bangladesh Maitree Power Plant, the India-Nepal cross-border petroleum pipeline, and the Kaladan Multi-Modal Transit Transport Project (linking India to Myanmar and beyond) are designed to boost regional trade and integration.
• SAARC Development Fund (SDF): It finances regional projects in areas like energy, transportation, and social development.
• BIMSTEC and BBIN Initiatives: These sub-regional groups aim to promote trade, connectivity, and energy cooperation.
• Startup India and Digital Outreach: India’s Startup India initiative has inspired cross-border collaboration, with Indian incubators and digital platforms offering mentorship and market access to entrepreneurs from neighboring countries.

Way Forward: Strategic Regionalism

• South Asia’s development hinges on genuine regional cooperation. To tap into its potential:
  • Reform SAFTA and focus on actionable enforcement;
  • Address border and trust issues through sustained diplomacy;
  • Create regional value chains to boost employment and innovation;
  • Develop trade infrastructure that supports integration over division;
• Separate economic cooperation from political conflict, as seen in the EU model.

Current Context: Cloudburst-triggered flash floods in Kullu and Kangra have resulted in multiple deaths, missing persons, and widespread damage as monsoon begins.

ABOUT CLOUD BURST

• Definition: Sudden, intense rainfall (>100 mm/hr) over small areas (~20–30 sq km), usually in hilly terrain.
• Cause: Orographic lift—warm, moist air rises over mountains, cools, and precipitates heavily.

Current Context: A detailed caste census in Himachal Pradesh will begin in 2026, prioritising snow-bound regions, with full-scale rollout in 2027.

 ABOUT CASTE CENSUS

• Demography:Population ~7.756 million; SCs ~25%, OBCs ~13.5%, STs ~5.71%. 57 SC castes recognised; Hattee community granted ST status in 2023.
• Methodology:State employees (teachers, anganwadi workers) to conduct door-to-door surveys using digital tools; data validated via official records.
• Legal Dispute:High Court stayed Hattee ST notification; hearing expected July 2027—outcome may influence census methodology.
• Importance:Enables evidence-driven policies on reservation, welfare, and inclusive development tailored to state demographics.