24 May 2025 : Daily Current Affairs

1. India’s GDP Growth Forecast Revised Upward by S&P

Source: Page 1, The Indian Express (24 May 2025)

Topic: GS Paper 3 – Economy

Context

Global rating agency S&P revised India’s GDP growth forecast for FY26 to 7.2% citing strong domestic demand and robust infrastructure spending.

Content:

• Economic Outlook:

  • India’s GDP is expected to grow at 7.2% in FY26 (up from 6.8%).

  • Key drivers: Government capex, private consumption, recovery in manufacturing.

• Structural Trends:

  • Increased formalization of economy.

  • Boost from PLI schemes, digital infrastructure, and logistics reforms.

• Challenges:

  • High youth unemployment and rural distress.

  • Global uncertainty, oil prices, and monsoon dependency.

• UPSC Relevance:

  • Demonstrates macroeconomic resilience.

  • Useful for understanding fiscal and monetary interplay.

Way Forward:

• Maintain policy stability and continue reforms.

• Invest in labour-intensive sectors for job creation.

• Strengthen MSMEs and skilling ecosystems.

Practice Question:

“Examine the recent drivers of India’s economic growth and evaluate their sustainability in the face of structural challenges.” (250 words / 15 marks)

2. Karnataka’s Internal Reservation Model Sparks Debate

Source: Page 6, The Indian Express (24 May 2025)

Topic: GS Paper 2 – Polity & Governance; GS Paper 1 – Indian Society

Context

The Karnataka government’s new internal quota policy within OBCs has led to protests and political opposition.

Content:

• Policy Overview:

  • Karnataka has introduced internal reservations among OBCs under the 27% quota.

  • Categories like Kuruba and Vokkaliga have been given distinct sub-quotas.

• Constitutional and Social Dimensions:

  • Raises questions on equality vs equity in affirmative action.

  • Challenges around judicial scrutiny, especially post Indra Sawhney judgment.

• Political Fallout:

  • Backlash from communities who feel excluded or underrepresented.

  • Possible implications for electoral politics.

• Ethical Concerns:

  • Balancing justice for the most backward vs appeasement politics.

  • Issues of data-driven policy vs anecdotal inclusion.

Way Forward:

• Commission a fresh OBC sub-categorization study.

• Promote transparency and evidence-based affirmative action.

• Ensure social cohesion while implementing justice-oriented policies.

Practice Question:

“Discuss the rationale behind sub-categorisation within OBCs in India. How can such internal reservations be balanced with constitutional mandates and social harmony?” (250 words / 15 marks)

3. India-ASEAN Maritime Exercise Begins in South China Sea

Source: Page 7, Indian Express (24 May 2025)

Topic: GS Paper 2 – International Relations; GS Paper 3 – Security

Context

India joined the ASEAN Multilateral Naval Exercise in the South China Sea amid growing tensions in the region involving China.

Content:

• Strategic Significance:

  • India’s participation marks strategic alignment with ASEAN for free navigation and regional stability.

  • The exercise occurs amid China’s increasing assertiveness in the South China Sea.

• India’s Indo-Pacific Policy:

  • Reinforces Act East Policy and SAGAR (Security and Growth for All in the Region).

  • Aims to promote rules-based international maritime order.

• Geopolitical Implications:

  • Demonstrates India’s readiness to engage in multilateral security frameworks.

  • Balances China’s dominance without direct confrontation.

• ASEAN Centrality:

  • Upholds the centrality of ASEAN in regional architecture.

  • Strengthens India’s role in regional peacekeeping and disaster response initiatives.

Way Forward:

• Enhance naval diplomacy through regular bilateral and multilateral exercises.

• Improve maritime domain awareness and information sharing with ASEAN.

• Deepen cooperation in blue economy and maritime infrastructure.

Practice Question:

“India’s increasing participation in Indo-Pacific maritime engagements reflects a shift in its strategic orientation. Discuss in light of India-ASEAN naval cooperation.” (150 words / 10 marks)

Prelims Facts

1. S&P Revises India’s GDP Growth Forecast to 7.2%

Source: Page 11, The Indian Express (24 May 2025)

Topic: GS Paper 3 – Indian Economy

Context

S&P Global Ratings upgraded India’s GDP forecast for FY26 to 7.2%, citing a resilient domestic economy supported by infrastructure spending and strong consumer demand.

Analysis of the news:

• Key Drivers of Growth:

  • High public capital expenditure.

  • Recovery in manufacturing and construction.

  • Strengthening of the services sector post-COVID.

• Structural Strengths:

  • Benefits from PLI schemes, digital transformation, GST stability.

  • Rapid formalization of economy due to UPI, DBT, and Aadhaar-linked welfare.

• Risks Ahead:

  • Youth unemployment, global headwinds, climate volatility.

  • Interest rate uncertainty in the global financial system.

2. Karnataka’s Internal Quota Plan Within OBCs

Source: Page 6, Indian Express (24 May 2025)

Topic: GS Paper 2 – Polity & Governance | GS Paper 1 – Indian Society

Context

The Karnataka government has implemented sub-categorisation within OBCs under the 27% quota, triggering public and political debate.

Analysis of the news:

• Policy Move:

  • Creates internal reservation categories among OBCs like Kuruba, Vokkaliga.

  • Aims to ensure equitable distribution of reservation benefits.

• Legal Backdrop:

  • Must be read in the light of the Indra Sawhney judgment (1992) which allowed sub-classification within backward classes.

• Concerns Raised:

  • Risk of fragmenting OBC unity.

  • Demands for updated socio-economic caste census to base decisions on empirical data.

3. ASEAN-India Naval Exercise in South China Sea

Source: Page 7, Indian Express (24 May 2025)

Topic: GS Paper 2 – International Relations | GS Paper 3 – Security

Context

India is participating in a multilateral naval exercise with ASEAN nations in the South China Sea, amid tensions involving China’s aggressive maritime claims.

Analysis of the news:

• Strategic Relevance:

  • Part of India’s Act East Policy and SAGAR (Security and Growth for All in the Region) initiative.

  • Emphasizes maritime security, peace, and rules-based order in the Indo-Pacific.

• ASEAN Engagement:

  • India seeks to build naval interoperability and support freedom of navigation in international waters.

  • Supports ASEAN centrality in regional security architecture.

• Geopolitical Signal:

  • Counters Chinese expansionism subtly without direct confrontation.

  • Builds India’s role as a responsible stakeholder in Indo-Pacific governance.

Check more: 23 May 2025 : Daily Current Affairs