20 June 2025 : Daily Current Affairs

1. India’s FDI slid 1.8% in 2024; share in capital formation declining: UN

Source: The Hindu, Page 15, June 20, 2025

Topic: GS Paper 3 (Economy – Investment & Growth)

Context

UNCTAD’s World Investment Report 2025 reveals a significant decline in India’s FDI inflows and its role in capital formation.

Content: 

Key Statistics:

• FDI inflow in 2024: $27.6 billion (↓1.8% from 2023; less than half of 2020 levels).

• FDI’s share in capital formation: 2.3% in 2024 (↓from 8.8% in 2020).

• FDI stock as % of GDP: Dropped to 14% in 2024 from 17.9% in 2020.

Issues Identified:

• Global economic uncertainty.

• Geopolitical tensions and ‘China+1’ policy shift.

• Domestic regulatory challenges and policy uncertainty.

Impact:

• Reduced long-term private sector growth.

• Potential strain on infrastructure and technology transfer.

• May hamper Make in India, Digital India, and Start-up ecosystem.

Way Forward:

• Improve policy predictability and ease of doing business.

• Enhance bilateral trade and investment treaties.

• Focus on sector-specific FDI facilitation.

Practice Question:

“India’s FDI inflows are declining despite ambitious reforms and policies. Examine the causes and suggest measures to revive foreign investment as a driver of economic growth.  (250 words / 15 marks)

2. Khamenei can no longer be allowed to exist: Israel

Source: Page 1 & 12, The Hindu, June 20 2025

Topic: GS Paper 2 (International Relations – India’s Neighborhood & West Asia)

Context

The Israel-Iran conflict escalates as Israel accuses Iran of missile strikes on Soroka Hospital, while the US weighs military involvement.

Content:

Background:

• On June 13, Israel launched strikes against Iran targeting its nuclear infrastructure.

• Iran retaliated with ballistic missiles, including one that hit an Israeli hospital.

• Israeli Defence Minister blamed Iran’s Supreme Leader directly.

Geopolitical Risks:

• Threat of US involvement.

• Iran hints at closing Strait of Hormuz – a vital oil route (20% of world’s oil passes through).

• Risk of spillover into West Asia – involving American bases, GCC nations.

Implications for India:

• Energy security: Crude prices likely to rise.

• Indian diaspora safety – ~8 million in the Gulf.

• Strategic autonomy test for Indian foreign policy.

India’s Position:

• Calls for restraint and dialogue.

• Balancing relations with both Israel and Iran (critical partners).

Way Forward:

• Diplomatic engagement at multilateral forums (UN, NAM).

• Strategic oil reserves and diversification of energy sources.

• Evacuation protocols for Indian citizens (as seen in Operation Sindhu).

Practice Question:

The escalating Israel-Iran conflict poses new challenges for India’s energy and foreign policy. Discuss how India can navigate its strategic interests amid rising tensions in West Asia. (250 words / 15 marks)

3. HC revokes transfer of judge hearing 2020 riots ‘larger conspiracy’ case

Source: The Hindu, Page 1, June 20, 2025

Topic: GS Paper 2 (Judiciary, Governance); GS Paper 4 (Ethics – Judicial Accountability)

Context

Delhi High Court restores the original judge in the 2020 Delhi riots conspiracy case after transfer led to concerns of delay and judicial interference.

Content:

Case Significance:

• Concerns a “deep-rooted conspiracy” behind the Delhi riots.

• Key accused: Student leaders and activists booked under UAPA.

Legal Developments:

• ASJ Sameer Bajpai had been conducting daily hearings since Sep 2024.

• His sudden transfer on May 30 was seen as a hindrance to trial progress.

• High Court intervened and revoked the transfer.

Ethical and Governance Dimensions:

• Raises questions about judicial independence.

• Delay in justice vs. procedural transfers.

• Prolonged incarceration of accused under UAPA (over 4 years without trial).

Way Forward:

• Transparent criteria for judicial transfers.

• Timely completion of trials in sensitive cases.

• Use of fast-track courts in communal violence cases.

Practice Question:

Judicial transfers must not impede the delivery of justice, especially in cases of national importance. Examine the ethical and administrative issues involved in the context of the 2020 Delhi riots case. (150 words / 10 marks)

Prelims Facts

1. India’s FDI slid 1.8% in 2024; share in capital formation declining: UN

Source: Page 15, The Hindu

Topic: GS Paper 3 (Economy – Investment, Capital Formation)

Context

UNCTAD’s World Investment Report 2025 shows falling FDI in India and shrinking share in capital formation.

Analysis of the news:

• India’s FDI inflow in 2024: $27.6 billion (↓1.8% YoY).

• FDI share in capital formation: 2.3% in 2024 (↓ from 8.8% in 2020).

• FDI stock as % of GDP: ↓ to 14% in 2024 (from 17.9% in 2020).

• Report: Released by UNCTAD (United Nations Conference on Trade and Development).

• Sectors most affected: Technology, real estate, manufacturing.

• India still remains among top 10 global FDI destinations.

2. Khamenei can no longer be allowed to exist: Israel

Source: Page 1 & 12, The Hindu

Topic: GS Paper 2 (International Relations)

Context

Israel accused Iran of directly targeting a hospital with missiles in Beersheba; tensions escalating in the region.

Analysis of the news:

• Soroka Hospital in Israel hit by Iranian missile (multiple warheads).

• Iran’s strike was retaliation for Israeli attacks on Iranian nuclear sites.

• Israel’s Defence Minister blamed Iran’s Supreme Leader Ayatollah Khamenei.

• U.S. President Trump said a decision on attacking Iran will come within two weeks.

• Strait of Hormuz: Strategic oil route potentially at risk.

• Regional consequences: West Asia stability, global oil markets.

Check more: 19 June 2025 : Daily Current Affairs