15 July 2025 : Daily Current Affairs

1. Easing food prices drive inflation down   

Topic: GS Paper 3 – Economy – Inflation

The News

Retail inflation at a 77-month low of 2.1% in June as food inflation falls for the eighth consecutive month; wholesale inflation eases after 20 months. According to the Consumer Price Index (CPI) for June released by the Ministry of Statistics and Programme Implementation on Monday, the last time the growth in the index was lower was in January 2019. The -0.13% reading in the Wholesale Price Index (WPI), released by the Ministry of Commerce and Industry, was last lower in October 2023.

What is Inflation?

• Inflation refers to the rate at which the general level of prices for goods and services rises, leading to a decrease in the purchasing power of money.
• It occurs when too much money chases too few good
• In several recent months in a row, the inflation has remained down.
  

How is it measured?

CPI and WPI are two indices

1. Consumer Price Index (CPI) is a measure that examines the inflation in the weighted averageof prices of a basket of consumer goods and services, such as transportation, food, and medical care.
2. Wholesale Price Index (WPI) is a measure that examines the inflation in the weighted averageof prices of a basket of wholesale goods such as manufactured products, primary articles, and Energy (fuel and power).

CPI and WPI figures are released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) every month.

Categories of CPI

Types of CPI in India:

• CPI for Industrial Workers (IW)
• CPI for Agricultural Labourers (AL)
• CPI for Rural Labourers (RL)
• CPI for Rural, Urban, and Combined (used for inflation targeting).

Category	Weight (%)
Food & Beverages	45.86
Pan, Tobacco, Intoxicants	2.38
Clothing & Footwear	6.53
Housing	10.07
Fuel & Light	6.84
Miscellaneous	28.32

Understanding the News: 

Low Fuel prices leading to lower food Inflation; it’s good for consumers, but might be bad for farmers.

• Within the CPI, the food and beverages category was the only major component to record a contraction, declining by 2% in June 2025, compared to an inflation rate of 8.4% in June 2024. This marks the eighth consecutive month of easing food inflation.
• In the WPI category, the food articles category saw prices contract by 75% in June 2025, compared to an inflation rate of 11.1% in June 2024. That’s huge.
• Another major contributor to easing wholesale prices was crude petroleum and natural gas, which contracted by 3% in June, marking the 10th consecutive month of decline, with the last three months registering double-digit contractions.

India targets CPI to measure inflation

Under the Monetary Policy Framework Agreement (2015) between the RBI and the Government of India:

• Inflation target: 4% CPI inflation with ±2% band (i.e., 2%–6%).
• This is mandated under the RBI Act, 1934 (amended in 2016).

Why do we target CPI instead of WPI?

CPI has been mutually agreed target by the RBI and the government for inflation targeting, but not WPI, because:

• Reflects retail prices: CPI represents the prices faced by consumers, aligning with the cost of living and welfare.
• Includes services: Services form a significant part of the economy and consumer expenditure.
• Direct impact on households: Monetary policy aims at consumer welfare and controlling the cost of living.
• WPI excludes services and doesn’t reflect consumer prices accurately.
• Domestic Prices: WPI is largely dependent on the prices of commodities that are determined by international markets.

2. India, China must move forward on de-escalation, Jaishankar tells Wang

Topic: GS 2 – International Relations: India and Neighbourhood.

The News

External Affairs Minister S. Jaishankar met Chinese Foreign Minister Wang Yi in Beijing on July 14, 2025, marking his first visit to China since 2019 and the Galwan clashes of 2020. India stressed the need to move forward on de-escalation along the Line of Actual Control (LAC), after achieving disengagement nine months ago. Called for normalisation of people-to-people ties and the removal of restrictive trade measures (referring to Chinese export restrictions on critical minerals). Highlighted the importance of zero tolerance on terrorism in the Shanghai Cooperation Organisation (SCO) context. Both sides acknowledged progress in restoring bilateral engagement mechanisms and discussed PM Modi’s upcoming visit to China for the SCO Summit in September 2025.

Background

India-China Relations Post-Galwan (2020): The Galwan clashes led to the deadliest confrontation in 45 years, causing a sharp deterioration in relations. Since then, multiple rounds of military and diplomatic talks have led to disengagement at some friction points, but de-escalation and demobilisation of troops remain pending.

Current Status: Disengagement achieved in Dec 2024 → Peace maintained at LAC.

Area occupied by China after the Galwan Clash:

However, teports following the 2020 standoff estimate Chinese occupation of previously Indian-patrolled territory across several friction zones:

• Depsang region: Around 900 km²
• Pangong Tso area: ~65 km²
• Galwan Valley: ~20 km²
• Hot Springs / Gogra: ~12 km²
• Chushul sector: ~20 km²
• Overall (across multiple points): Estimates range from 1,000 km² to 2,000 km²

Efforts underway to resume trade, religious pilgrimages (Kailash Mansarovar Yatra restarted after 5 years), and high-level visits (NSA, Defence Minister, now EAM).

Key Issues Discussed

1. Border Situation: Jaishankar reiterated that full normalisation is not possible without resolving border issues. He urged for the de-escalation of troops, the next step after disengagement. It means that India wants back the land taken in 2020.
2. Economic and Trade Ties: India raised concerns over Chinese export restrictions on critical minerals, calling for the removal of barriers and the promotion of trade.
3. SCO Cooperation: India emphasised that the SCO’s mandate is to combat terrorism, separatism, and extremism and urged for “zero tolerance for terrorism” in the SCO joint statement.
4. Geopolitical Dynamics: China highlighted the need for trust, not suspicion, and called for resisting unilateral protectionism and bullying by powerful countries (implied reference to the U.S.).

Significance of the Meeting

• First Visit in 6 Years: Signals a gradual thaw in ties ahead of PM Modi’s visit for the SCO Summit.
• Border Issue Still Central: Despite progress in other areas, LAC tensions remain the biggest hurdle to full normalisation.
• Strategic Messaging: India reinforced its stand on sovereignty and terrorism. China pitched for bilateral cooperation within a changing global order and the Global South narrative.
• Multilateral Context: Positions of India and China at the SCO Foreign Ministers’ meet will influence the joint statement, especially on terrorism.

Challenges Ahead

• Heavy troop deployment continues, creating mistrust.
• Critical mineral export curbs by China and India’s import dependence remain contentious.
• India’s closer ties with the U.S. and the Quad China’s global stance.
• China-Pakistan nexus, particularly on terrorism, remains a concern.

Implications for India’s Foreign Policy

• Act East & Indo-Pacific Strategy: Balancing ties with China while deepening engagement with ASEAN and the Quad.
• Strategic Autonomy: Maintaining issue-based cooperation with China on trade and multilateral forums while safeguarding territorial integrity.
• SCO Role: India will push for a stronger language on terrorism and economic connectivity without compromising sovereignty.

3. Centre gives approval for transfers, appointments of new Chief Justices of HCs

Topic: GS 2 – Indian Polity: Indian Judiciary

The News

The Union Government has cleared the transfers and appointments of Chief Justices and judges in several High Courts across the country. These decisions were made with the approval of the President, as per constitutional provisions, and in consultation with the Chief Justice of India.

Background – How are judges appointed in India

The appointment and transfer of judges in High Courts are governed by Articles 217 and 222 of the Constitution and are carried out based on the recommendations of the Supreme Court Collegium, headed by the Chief Justice of India. This mechanism aims to ensure judicial independence while maintaining an efficient judiciary through timely appointments and transfers.

• As per article 217, the President appoints the Chief Justice and other judges after consultation with such judges of the Supreme Court and the high courts as he considers necessary for the purpose.
• The Supreme Court has interpreted the word ‘consultation’ as concurrence, and therefore, the advice given by the Supreme Court is binding.

Collegium system

To ensure that the binding consultation given by the Supreme Court is not biased, it has devised the Collegium system, in which the CJI has to consult other senior judges in the following way:

• CJI should consult a collegium of 4 senior-most judges of the Supreme Court. If 2 judges give an adverse opinion, the Chief Justice should not send a recommendation.
• The opinion of the collegium must be in
• Regarding the appointment of judges to the High Court, the collegium should consist of the CJI and any 2 senior-most judges of the Supreme Court.

CJI’s recommendation made without complying with the rules and requirements of the consultation process would not be binding on the government.

Major Transfers of Chief Justices:

These appointments and transfers were recommended by the Supreme Court Collegium headed by CJI B.R. Gavai.

• Chief Justice R. Shriram (Madras HC) → Rajasthan HC
• Chief Justice Manindra Mohan Shrivastava (Rajasthan HC) → Madras HC
• Chief Justice S. Ramachandra Rao (Jharkhand HC) → Tripura HC
• Chief Justice Aparesh Kumar Singh (Tripura HC) → Telangana HC

New Appointments as Chief Justices:

• Justice Sanjeev Sachdeva → Madhya Pradesh HC
• Justice Tarlok Singh Chauhan → Jharkhand HC
• Justice Vibhu Bakhru → Karnataka HC
• Justice Ashutosh Kumar → Gauhati HC
• Justice Vipul Manubhai Pancholi → Patna HC

Other Judge Transfers:

• Justice Anil Kshetarpal → Delhi HC
• Justice Suman Shyam → Bombay HC
• Justices Ashwani Kumar Mishra, Om Prakash Shukla, and Jayant Banerji transferred from the Allahabad HC to other High Courts.

Criticism of Collegium system – Important

1. No accountability: The collegium is not accountable to any administrative body as a small group of judges appoint other judges. This can result in choosing the undeserving candidate while excluding the suitable one.
2. Lack of transparency: All discussions take place in secrecy, which is very harmful. Ruma Pal, a former Supreme Court of India judge, states, “This mechanism is one of the best-kept secrets in the nation”.
3. Undemocratic system: Judges are not elected by the people and are not answerable to the public. Consequently, the selection of judges by the collegium is undemocratic.
4. Concentration of power: It violates the system of checks and balances by concentrating the power of sending the recommendations for judicial appointments only to the judiciary, with no or limited role for executives in sending the names of candidates.

The government disfavours such a system as it is opaque, and extra-constitutional (i.e. not given in the constitution). It is a method invented by the Supreme Court that awards itself independence and primacy in the appointments in the higher judiciary.

Conclusion: This move is significant as it ensures continuity in judicial functioning and reduces the backlog of cases by filling key vacancies in High Courts.

4. MGNREGS digital attendance  system being manipulated, Centre tells States

Topic: GS 2 – Governance: Welfare Schemes

The News

The Union Government has identified widespread misuse of the National Mobile Monitoring System (NMMS), the digital attendance system used under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). In response, the Ministry of Rural Development has introduced four layers of physical verification to prevent manipulation and ensure transparency in wage payments.

What is the National Mobile Monitoring System (NMMS)?

The NMMS was introduced in 2021 to enhance transparency and accountability in MGNREGS implementation.

• It requires workers’ attendance to be recorded through geo-tagged photographs uploaded twice daily.
• It was made mandatory in 2022.

However, complaints emerged regarding connectivity issues and operational challenges, and now, the government has discovered deliberate manipulation that undermines the credibility of the system.

Issues identified:

• Uploading irrelevant or duplicate photographs
• Photo-to-photo capturing instead of live work images
• Mismatch in actual vs recorded attendance and gender composition
• Gender discrepancies in worker composition.
• Mismatch in morning and afternoon photos.
• Non-uploading of afternoon images.

It is a clear case of corruption.

Government Response

The Government has issued a 13-page directive on July 8 to State governments.

1. It has introduced four levels of verification:
   1. Gram Panchayat: 100% verification
   2. Block: 20% random checks
   3. District: 10% checks
   4. State: 5% checks

2. It has allowed editing of muster rolls before wage bill preparation, which earlier could be done only at the District Collector level.

The Ministry has stated that no relaxation will be given in cases of misuse or manipulation of NMMS.

Issue of Corruption in MGNREGS

• Corruption in MGNREGS arises from ghost beneficiaries, fake muster rolls, and over-reporting of work. Officials often collude to siphon funds through inflated attendance records and fictitious job cards.
• Delayed wage payments and lack of transparency enable rent-seeking.
• Fake Beneficiaries: Often Village officials upload fake or repeated photographs, using technological loopholes, and take all the benefits from multiple users.

Poor social audits, weak grievance redressal, and political interference worsen accountability.

Though MGNREGS aims at rural employment and poverty reduction, corruption undermines its effectiveness, demanding stronger audits, digital safeguards, community monitoring, and punitive measures to protect its integrity and ensure benefits reach genuine workers.

Conclusion: The development underscores the need for a balanced approach combining digital technology with robust offline monitoring to ensure the integrity of welfare programs.

5. SC Flags Misuse of Free Speech on Social Media

Topic: GS 2 – Indian Polity: Fundamental Rights

The News

The Supreme Court on Monday observed that the right to free speech is increasingly being abused on social media, calling for self-restraint and possible regulation. The court emphasised that freedom of speech comes with reasonable restrictions under the Constitution and warned against its misuse to create divisive tendencies.

Background

• The Bench of Justices V. Nagarathna and K.V. Viswanathan remarked that social media misuse for spreading abusive or divisive content must be curbed.
• The court suggested exploring a framework to regulate harmful social media posts, clarifying that it is not advocating censorship but seeking a mechanism to uphold fraternity, secularism, and the dignity of individuals.
• The observation came while hearing a petition by Wazahat Khan, who sought the consolidation of FIRs filed in multiple states over his social media posts. The FIRs were registered after his complaint led to the arrest of influencer Sharmistha Panoli for her online comments.

IMPORTANCE:

The court’s comments may lead to the formulation of guidelines for responsible online speech, striking a balance between free expression and public order.

6. Omar hops fence to reach Martyrs’ Grave

Topic: GS Paper 3 – Internal Security

The News

Former Jammu & Kashmir Chief Minister Omar Abdullah defied restrictions by climbing a wall to enter the sealed martyrs’ graveyard in Srinagar to pay tribute to the 22 people killed in police firing on July 13, 1931. Meanwhile, opposition leaders, including Mamata Banerjee, Stalin, and Akhilesh Yadav, criticised the BJP-led Centre for allegedly curbing democratic rights by confining political leaders.

13^th July Martyrs Day in J&K

• Martyrs’ Day on July 13 commemorates the killing of 22 Kashmiris during protests against the Dogra monarchy in 1931.
• The day has political significance in J&K.
• Since the abrogation of Article 370 in 2019, restrictions on political gatherings have been frequent in the Union Territory, raising questions on democratic freedoms and federalism.

Details of the News

• Police Restrictions: The J&K Police sealed the graveyard and blocked political leaders, citing security concerns.
• Omar Abdullah’s Action: He climbed the wall and performed prayers, questioning the prolonged security measures and terming them “undemocratic.”
• Opposition Response:
  • Mamata Banerjee, Stalin, and Akhilesh Yadav condemned the restrictions, calling them an attack on elected representatives’ rights.
  • They alleged the BJP is systematically curbing political freedoms in J&K and across India.
• Omar argued that normalcy claims contradict such restrictions, while Hurriyat leaders also criticised the ban.

Severe Implications

• The incident underscores the continuing political sensitivities in J&K post-Article 370 and the centralisation of power by the Union Government.
• Opposition unity on this issue may intensify political confrontation with the Centre.
• This raises constitutional concerns over federalism, political freedoms, and governance in conflict-prone regions.
• Globally, such events could impact India’s democratic image.

7. Indians lost ₹7,000 crore to cyber frauds from Jan to May: MHA data

Topic: GS Paper 3 – Internal Security

The News

According to the Ministry of Home Affairs (MHA), Indians lost ₹7,000 crore to cyber fraud between January and May 2025, averaging more than ₹1,000 crore per month. Most scams originated from Southeast Asian countries like Cambodia, Myanmar, Vietnam, Laos, and Thailand, involving organised cybercrime syndicates.

Background

With the rapid adoption of digital payments and online services, India has become increasingly vulnerable to cyber fraud. Organised crime groups exploit weak regulations, lure Indians with fake job offers, and coerce them into scam operations abroad. The Indian Cyber Crime Coordination Centre (I4C) was established to counter these threats, but enforcement across borders remains complex.

Details of the News

• Monetary Loss: ₹7,000 crore lost between January and May 2025, averaging more than ₹1000 Cr per month.
• Scam Origin: Most of these scams originate in Cambodia, Laos, Myanmar, Vietnam, and Thailand. Around 45 scam compounds have been identified.
• Types of Frauds: Stock trading scams, digital arrest, task-based investment scams.
• Over 5,000 Indians were reportedly trapped in scam compounds.

Government Response:

• Rescue of Indians trapped in scam hubs.
• FIRs against ghost SIM cards and PoS fraud networks.
• Investigation into trafficking routes from India to Cambodia via Dubai, China.

Implications

• Economic Risk: Massive losses threaten financial security and trust in digital platforms.
• Diplomatic Challenge: Requires strong bilateral cooperation with Southeast Asian nations.
• Law & Order: Increased need for cyber law enforcement and awareness programs.
• National Security: Organised cybercrime linked to human trafficking and financial fraud raises serious concerns.

8. Environment Ministry defends revised framework for thermal plants to meet SO2 emission norms

Topic: GS Paper 3 – Environment: Climate Change

The News

The Union Environment Ministry has defended its July 11 order introducing a revised compliance framework for thermal power plants to meet SO2 (sulphur dioxide) emission norms. The ministry clarified that the decision was evidence-based, contrary to allegations of “regulatory dilution.”

Background

SO2 is a harmful gas produced from coal combustion, contributing to air pollution and the formation of secondary pollutants.

• In 2015, India introduced SO2 emission norms for coal and lignite plants, requiring the installation of flue gas desulphurization (FGD) systems.
• Due to high costs and operational challenges, timelines for compliance have been extended multiple times.
• Now, the Plants retiring before December 2030 are exempt if they file an undertaking.

Revised Framework Highlights:

Many coal-based plants are exempted from mandatory FGD retrofitting.

Classification of plants:

• Category A: Within 10 km of Delhi-NCR or cities with >1 million population; compliance by Dec 2027.
• Category B: Within 10 km of critically polluted areas; assessed case-by-case.
• Category C: Others; largely exempted.

Cost & Impact:

• An estimated ₹2.54 lakh crore is needed for full retrofitting.
• Plants continuing beyond 2030 without compliance will pay ₹0.40 per unit of electricity generated as compensation.
• Scientific review found no major public health risk from SO2 under current conditions, citing limited impact on PM2.5 levels.

Implications

• Environmental Impact: Possible delay in achieving cleaner air standards, raising concerns among environmentalists.
• Economic Relief: Reduces financial burden on power producers and ensures energy security.
• Policy Balance: Reflects a trade-off between sustainability goals and economic feasibility.
• Future Concerns: May invite criticism for weakening pollution control norms and affect India’s climate commitments.

9. India begins crucial week-long trade negotiations with US

The News

India has started a week-long trade negotiation with the United States in Washington to finalise a bilateral trade agreement. The talks come days after US President Donald Trump announced steep reciprocal tariffs on several countries, raising trade tensions globally.

Background

• The US recently imposed reciprocal tariffs of up to 50% on multiple nations, including the EU, Canada, and ASEAN, as part of its protectionist policy.
• India, aiming to secure its trade interests and avoid being disadvantaged, has accelerated discussions to sign a trade pact with the US by year-end.
• Trade ties with the US are vital as India seeks to diversify markets and counterbalance China’s influence in global trade.

Negotiation Goals:

India aims for a comprehensive bilateral trade deal by the end of 2025. There is a possibility of an interim agreement if full consensus is delayed.

• Statements: Commerce Minister Piyush Goyal said talks are progressing “at a very fast pace” with a focus on mutual cooperation.
• Strategy: No fixed deadline, but a strong push for early results to align with global trade dynamics.
• Global Context: The US Treasury Secretary noted that tariffs are aimed at applying maximum pressure; EU leaders have also been involved in similar negotiations.

Importance of India US Trade deal

• Economic Impact: A successful deal could enhance market access, reduce tariff barriers, and strengthen India-US economic ties.
• Geopolitical Significance: Deepens India’s position as a strategic trade partner amid global supply chain realignments.
• Challenges: Balancing US demands with domestic sensitivities in agriculture, technology, and tariffs.
• Long-Term Outcome: Could shape India’s global trade architecture and its role in multilateral frameworks like the WTO.

10. ‘After obesity, GLP-1 research focused on Alzheimer’s… hypothesis centres on its ability to reduce inflammation in the brain… this is different from current approaches’

The News

Danish scientist Lotte Bjerre Knudsen, co-inventor of the first long-acting GLP-1 receptor agonist for treating type-2 diabetes and obesity, shared insights on ongoing research exploring GLP-1’s potential in addressing Alzheimer’s disease. The research focuses on the hypothesis that GLP-1 can reduce brain inflammation, offering a different therapeutic approach compared to existing Alzheimer’s treatments.

Background

• GLP-1 (Glucagon-like peptide-1): A hormone involved in regulating blood sugar and appetite.
• Originally developed to manage type-2 diabetes, GLP-1 analogues also became revolutionary in treating obesity by reducing appetite and promoting weight loss.
• Recent findings suggest GLP-1 may have neuroprotective properties, sparking interest in Alzheimer’s research.
• Alzheimer’s is currently treated with drugs targeting amyloid plaques, but these have limited success.

Mechanism to reduce blood sugar

Liraglutide and Semaglutide are both GLP-1 receptor agonists (GLP-1 drugs). Long-acting analogues (e.g., Liraglutide, Semaglutide) have extended activity from minutes to 160 hours, enabling weekly dosing.

• GLP-1 Drugs Mechanism: Mimic natural GLP-1 to lower blood sugar, reduce hunger, and control weight.
• New Research Hypothesis: GLP-1 can reduce neuroinflammation in the brain, a key factor in Alzheimer’s progression. This approach is fundamentally different from amyloid-targeting therapies, which are traditionally used.
• Impact on Obesity & Diabetes: GLP-1 drugs have dramatically improved health outcomes, reducing mortality, heart disease, and obesity rates
  
  

Implication

• Medical Breakthrough Potential: If successful, GLP-1 therapy could transform Alzheimer’s treatment, shifting from plaque-centric to inflammation-focused approaches.
• Public Health Impact: Dual benefits for metabolic disorders and neurodegenerative diseases could significantly reduce global disease burden.
• Pharmaceutical Innovation: May spur new drug development, increasing investment in multi-target therapies.

Ethical & Economic Aspects:

This, however, raises concerns over drug affordability, access, and long-term safety in chronic neurological conditions.

Check more: 14 July 2025 : Daily Current Affairs