2 August 2025 : Daily Current Affairs

1. India-UK Free Trade Agreement: A Blow to Digital Sovereignty?

Source: Page 6 , The Hindu UPSC IAS Edition

Topic: GS-2 (International Relations, Bilateral Agreements); GS3 (Science and Technology, Effects of Liberalization)

Context

India and the UK have concluded a major Free Trade Agreement (FTA) in 2025. The editorial analyzes the digital trade chapter of the FTA and raises concerns about the concessions India has made regarding source code disclosure, open government data, and data flows, warning that these may undermine India’s long-term digital sovereignty.

Content

Key Provisions of the India-UK FTA and Digital Sovereignty

• Non-Disclosure of Source Code:
  The FTA restricts India’s sovereign right to demand ex ante access to source code of foreign digital goods/services, even in sensitive areas like AI, telecom, or health, limiting regulatory oversight and security compliance. This provision is broader and stricter than those found in other agreements and could hinder India’s domestic regulatory powers in the future.

• Open Government Data for UK Parties:
  The agreement commits India to the principle of granting equal and non-discriminatory access to government-held data (including potentially valuable datasets for AI development) to UK firms. Experts warn that this concession dilutes India’s competitive advantage in the digital economy and poses security risks.

• ‘Free Flow of Data’ and Data Localization:
  While India has resisted a complete commitment to free data flow, the FTA includes a clause requiring India to grant the UK any future concession made to any other country regarding data flow or localization. This ‘most-favoured-nation’ (MFN) style clause could constrain India’s future policy autonomy.

• Impact Analysis:

  • Weakens India’s negotiating power in global digital governance platforms like the WTO.

  • Makes India more vulnerable to foreign (especially Big Tech) influence on its digital infrastructure and policy.

  • Sets precedents on digital rules that may be difficult to reverse.

  • Undermines the concept of national data as a strategic resource.

Editorial Critique

• The editorial argues that India’s negotiators have been inattentive to the mid- and long-term implications for digital sovereignty. It draws parallels to the nation’s historical loss during colonial times by emphasizing the importance of retaining control over national data and digital assets.

• The need for a robust digital industrialization policy and dedicated digital sovereignty experts in trade negotiations is emphasized for safeguarding long-term interests.

• The conclusion warns of the risk of turning into a “digital colony” if India does not act with strategic foresight.

Way Forward

• India must urgently formulate a comprehensive digital sovereignty strategy, guiding future trade negotiations.

• All future FTAs should undergo rigorous scrutiny by technologists, national security experts, and civil society for digital clauses.

• The government should strengthen domestic regulation, invest in data infrastructure, and sensitize all stakeholders to the strategic value of national data.

Practice Question:

“Critically examine the implications of India’s commitments in the digital trade chapter of the India-UK Free Trade Agreement (FTA) for India’s digital sovereignty and future technology policy. Suggest safeguards India should adopt in future trade negotiations to protect its digital interests.” (250 words / 15 marks)

2. Surrogacy Scandal Exposes Regulatory Gaps in India’s Fertility Industry

Source: page 7, The Hindu UPSC IAS Edition

Topic: GS-2 (Governance, Social Justice); GS4 (Ethics in Public Administration)

Context

A major surrogacy scam has been uncovered in Telangana, where clinics offered surrogacy services—illegally, with falsified documentation, and in violation of the Surrogacy (Regulation) Act, 2021—highlighting deficiencies in law enforcement and oversight of fertility clinics.

Analysis from UPSC Angle:

What Happened?

• Universal Srushti Fertility Centre in Secunderabad, Telangana, promised couples babies through surrogacy, charged up to ₹30 lakh, but delivered infants with no biological relation to the parents.

• The clinic operated despite suspension of its license and used forged medical reports, unregistered sperm/egg donors, and brokers to “source” surrogates and even babies.

Regulatory Context

• The Surrogacy (Regulation) Act, 2021, allows only altruistic surrogacy (no monetary compensation except medical expenses) and mandates all procedures must be conducted at registered clinics.

• Commercial surrogacy is a punishable offense; punishment includes imprisonment up to 10 years and fines up to ₹10 lakh.

Critical Issues & Ethical Concerns

• Exploitation and Human Trafficking: Vulnerable women were exploited, babies were bought from poor parents for as low as ₹90,000, and then sold to desperate couples.

• Weak Enforcement: The clinic was previously shut down five times but resumed operations, exposing law enforcement failures.

• Legal vs. Ethical Responsibility: Gross violation of bioethics, patients’ rights, and children’s best interests.

• Role of Technology and Documentation: The lack of a robust digital tracking system for donors/surrogates contributed to the scam. Some compliant clinics use “RI Witness systems” for sample tracking, but smaller ones do not.

Analysis

• The scandal highlights the persistent gap between law and enforcement in India’s reproductive technology sector.

• The need for strict documentation, digital tracking, and continuous oversight by state authorities is urgent.

• There must be better protection for vulnerable women, and stringent penalties for those violating the law.

Way Forward

• Strengthen the enforcement of ART and Surrogacy Acts.

• Mandate digital tracking (Aadhaar-linked systems) for all procedures and donors.

• Enhance awareness among prospective parents about legal surrogacy.

• Regular audits of clinics, stricter licensing, and effective grievance redressal mechanisms.

• Support rehabilitative programs for exploited women.

Practice Question:

“India’s surrogacy regulation regime seeks to balance the interests of intended parents, surrogate mothers, and the child. In the light of recent surrogacy scandals, critically assess the effectiveness of the current regulatory framework and suggest ways to improve ethical compliance in the fertility industry” (250 words / 15 marks)

3. PSLV-C61 Mission Failure: Lessons for India’s Space Program

Source: Page 8, Indian Express Delhi Edition

Topic: GS-3 (Science & Technology – Space, Achievements of Indians in S&T)

Context

ISRO’s PSLV-C61 mission failed in May 2025 during the third stage, marking a rare setback for the workhorse launcher and highlighting the need for continued focus on reliability, quality control, and rapid learning.

Key Points for UPSC:

What Went Wrong?

• The PSLV-C61 carried the Earth observation satellite EOS-09. The first two stages performed normally, but a pressure drop in a critical part during the third stage led to the mission’s failure.

• A national-level committee is investigating the causes; a detailed report is awaited.

Significance

• PSLV is India’s trusted satellite launch vehicle, with 63 successful launches before this failure.

• The rare failure spotlights the importance of rigorous assembly, QA, component testing, and real-time anomaly tracking.

Implications

• The failure provides lessons for the Gaganyaan human spaceflight mission (planned for 2027) and upcoming high-value launches.

• It emphasizes the need for maintaining and enhancing ISRO’s zero-error culture with greater automation, real-time diagnostics, and international best practices.

• Transparent public communication about failures boosts credibility and learning.

Way Forward

• Strengthen in-flight monitoring and post-mission analysis.

• Maintain a healthy balance between innovation and reliability in new and existing launch vehicles.

• Develop redundancy and fail-safe systems, especially for crewed and high-value missions.

Practice Question:

“Assess the impact of the PSLV-C61 mission failure on India’s space program. What steps should ISRO take to maintain reliability and public trust while scaling up its ambitions?” (150 words / 10 marks)

Check more: 1 August 2025 : Daily Current Affairs