23 June 2025 : Daily Current Affairs

1. U.S. Attacks Iran, Strikes Three Nuclear Sites

Source: The Hindu, Page 1, June 23, 2025

Topic: GS Paper 2: International Relations | GS Paper 3: Internal Security & Energy Security

Context

Amid escalating tensions in West Asia, the U.S. bombed Iranian nuclear facilities without Congressional approval, drawing global condemnation and risking regional stability.

Content: 

Key Developments:

• U.S. bombed Fordow, Natanz, and Isfahan nuclear sites in Iran.

• Iran’s Parliament voted to close the Strait of Hormuz, a vital oil trade route.

• Iran retaliated by firing missiles on Israeli cities; diplomatic ties in the region, including India’s, are impacted.

Implications for India:

• India imports 80% of its crude oil; ~20% of global oil passes through the Strait of Hormuz.

• Any disruption threatens India’s energy security and shipping costs.

• India has increased Russian oil imports as a safeguard.

Diplomatic Response:

• PM Modi urged de-escalation in a call with Iran’s President.

• India will participate in the IAEA emergency meeting.

Analysis:

• Strategic Balancing: India maintains close ties with both the U.S. and Iran.

• Energy Diversification: India’s focus on diversifying energy sources reflects prudent long-term strategy.

• Geopolitical Risk Management: Highlights the role of diplomacy and multilateral forums like IAEA.

Practice Question:

Discuss the implications of the recent U.S.-Iran conflict on India’s energy and foreign policy. How should India balance its strategic interests in West Asia?  (250 words / 15 marks)

2. India Trails in Critical Tech, Particularly Semiconductor Tech

Source: Page 9, The Hindu, June 23 2025

Topic: GS Paper 3: Science and Technology – Indigenization, Strategic Tech

Context

A global index highlights India’s lag in semiconductors, AI, quantum tech, and space, vis-à-vis the U.S., China, and Europe.

Content:

Highlights:

• India ranked 7th in space, behind Russia.

• Lags in semiconductors due to limited chip design and fabrication capabilities.

• The U.S. and China dominate across sectors.

Strategic Concerns:

• Semiconductors form the backbone of modern technology (defence, telecom, AI).

• India’s dependence on imports makes it vulnerable to supply chain disruptions.

Government Initiatives:

• PLI schemes for semiconductor manufacturing.

• Efforts to boost AI talent and quantum research.

Way Forward:

• Create semiconductor fabrication ecosystem domestically.

• Collaborate with tech leaders like Taiwan, Japan.

• Upskill talent and improve R&D investment.

Practice Question:

India lags in critical technologies despite growing strategic ambitions. Examine the steps taken to address this gap, especially in the semiconductor sector. (250 words / 15 marks)

3. Steering the Indian Economy Amidst Global Troubles

Source: The Hindu, Page 9, June 23, 2025

Topic: GS Paper 3: Economy – Growth, Monetary Policy, Trade

Context

As global trade weakens, India must leverage FTAs and reform domestic policy to ensure economic resilience.

Content:

Strategic Policy Mix:

• RBI cut repo rate to 5.5% to boost investment.

• Income tax cuts indicate expansionary fiscal policy.

• Strong public capex and trade negotiations with EU, Australia, US underway.

Challenges:

• Coordinating monetary-fiscal policy to avoid inflation.

• Trade protectionism and dumping risk.

• Supply chain realignment post-China+1 strategy.

Recommendations:

• Fast-track FTAs and reduce NTBs.

• Expand PLI schemes.

• Attract FDI in manufacturing sectors.

• Continue public capex while anchoring inflation.

Practice Question:

Examine the need for coordination between monetary and fiscal policy in the current Indian economic context. Discuss the role of FTAs and domestic reforms in economic revival. (150 words / 10 marks)

Prelims Facts

1. U.S. Attacks Iran, Strikes Three Nuclear Sites

Source: Page 1, The Hindu

Topic: GS Paper 2: International Relations | GS Paper 3: Internal Security & Energy Security

Context

U.S. airstrikes on Iran’s nuclear facilities risk escalation in West Asia, affecting global energy routes.

Analysis of the news:

• Fordow, Natanz, Isfahan – key Iranian nuclear facilities targeted.

• Strait of Hormuz – Strategic chokepoint for global oil trade (~20% of world oil passes through).

• IAEA – International Atomic Energy Agency called emergency meeting.

• Iran’s Response – Closed the Strait of Hormuz; no immediate radioactive leak reported.

• India’s Role – PM Modi called for de-escalation; diplomatic balancing act.

2. India Trails in Critical Tech, Particularly Semiconductor Tech

Source: Page 9, The Hindu

Topic: GS Paper 3: Science and Technology – Indigenization of Technology, Strategic Sectors

Context

Global index shows India lagging in high-tech sectors, especially semiconductors.

Analysis of the news:

• India ranks 7th in space tech, behind Russia.

• PLI Scheme – Production Linked Incentive introduced for semiconductors.

• Critical technologies lag – Quantum, AI, semiconductor fabrication.

• Chip manufacturing hubs – U.S., China, Taiwan, South Korea.

• Semiconductors – Key to national security, telecom, AI, defence tech.

Check more: 21 June 2025 : Daily Current Affairs