7 June 2025 : Daily Current Affairs

1. RBI Cuts Repo Rate by 50 bps; Liquidity to Ease

Source: The Hindu, Page 1 & 8, June 7, 2025

Topic: GS Paper 3: Indian Economy – Monetary Policy, Growth & Inflation

Context

The RBI’s Monetary Policy Committee reduced the repo rate by 50 basis points to 5.5% and announced a phased reduction in the Cash Reserve Ratio (CRR) by 100 basis points.

Content: 

Key Announcements:

• Repo rate cut from 6.0% to 5.5%

• CRR to be reduced to 3% in four stages

• Projected GDP growth for 2025-26: 6.5%

Analysis:

• Growth over Inflation: With retail inflation at a 69-month low, the RBI prioritized economic growth.

• Liquidity Boost: ₹2.5 lakh crore of primary liquidity will be infused into the banking system through CRR cuts.

• Transmission Challenges: Rate cuts will only aid growth if banks transmit them to borrowers efficiently.

Editorial Perspective:

• The editorial supports the RBI’s shift from a neutral to growth-supportive stance amid fiscal limitations.

• Warns of volatility due to monsoon and global uncertainties.

Way Forward:

• Need for coordinated fiscal-monetary policy

• Banking sector reforms to improve credit transmission

Practice Question:

“Discuss the implications of the recent RBI monetary policy decisions on economic growth and inflation management in India.”  (250 words / 15 marks)

2. PM Inaugurates Rail Projects in J&K, Launches USBRL

Source: Page 1, The Hindu, June 7, 2025

Topic: GS Paper 1 (Geography: Infrastructure), GS Paper 3 (Economic Development)

Context

Prime Minister inaugurated the Chenab and Anji bridges and flagged off the Vande Bharat Express from Katra to Srinagar.

Content:

Key Features:

• Chenab Bridge: World’s highest railway arch bridge.

• Anji Bridge: India’s first cable-stayed rail bridge.

• USBRL Project: Connects Jammu with Kashmir Valley.

Significance:

• Strategic Importance: Boosts connectivity in a sensitive border region.

• Economic Upliftment: Enhances tourism, trade, and integration with the rest of India.

• Engineering Marvel: Overcomes Himalayan topographical challenges.

Analysis:

• Critical for national integration and addressing regional disparities.

• Demonstrates infrastructure advancement in difficult terrain.

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Practice Question:

Highlight the strategic and socio-economic significance of the Udhampur-Srinagar-Baramulla Rail Link (USBRL) project. (250 words / 15 marks)

3. 800-Year-Old Pandya Period Temple Unearthed in Madurai

Source: The Hindu, Page 4, June 7, 2025

Topic: GS Paper 1: Art & Culture; Indian History

Context

An ancient Shiva temple, dated to 1217-1218 CE, has been discovered in Udampatti village, Tamil Nadu.

Content:

Findings:

• Temple called Thennavanisvaram, linked to Pandya rulers.

• Inscriptions mention land grants, financial autonomy, and socio-economic aspects.

Cultural Significance:

• Highlights local administrative and religious practices of the later Pandya period.

• Reflects temple-based economy and governance.

Analysis:

• Enhances understanding of South Indian temple architecture and medieval Tamil polity.

• Potential for tourism and heritage conservation.

Practice Question:

“What do recent archaeological discoveries in Tamil Nadu reveal about the cultural and economic practices during the Pandya period?” (150 words / 10 marks)

4. Kerala Hydel Project Faces Delay Due to Waste Blockage

Source: The Hindu, Page 6, June 7, 2025

Topic: GS Paper 3: Environment; Infrastructure

Context

Pallivasal Hydel Project’s commissioning delayed due to solid waste clogging intake channels.

Content:

Issues Identified:

• Waste from Munnar town is blocking water flow.

• Project commissioning postponed from June to September.

Environment-Infrastructure Conflict:

• Highlights poor waste management affecting renewable energy generation.

• Brings to light the need for eco-sensitive infrastructure planning.

Remedial Measures:

• Automated trash rack cleaner installation

• Linkage with older intake channels.

Practice Question:

“Examine how urban waste management challenges can impact renewable energy infrastructure, citing the example of the Pallivasal Hydel Project.” (150 words / 10 marks)

5. Kerala Lab Develops Test Kit for Deadly Brain Amoeba

Source: The Hindu, Page 6, June 7, 2025

Topic: GS Paper 2: Health; GS Paper 3: Science & Tech

Context

Kerala’s Public Health Lab develops indigenous molecular diagnostic kits for identifying free-living pathogenic amoeba.

Content:

Innovation Highlights:

• Identifies five major species of pathogenic amoeba including Naegleria fowleri.

• Facilitates early diagnosis of Amoebic Meningoencephalitis.

Significance:

• Reduces dependency on external labs like PGI Chandigarh.

• Enhances rapid public health response in fatal brain infection cases.

Implications:

• Strengthens India’s health security and research infrastructure.

• Encourages local innovation in disease diagnostics.

Practice Question:

“Discuss the role of indigenous research and diagnostics in improving public health response mechanisms in India.” (150 words / 10 marks)

Prelims Facts

1. RBI Cuts Repo Rate and CRR to Boost Growth

Source: Page 1 & 8, The Hindu

Topic: GS Paper 3: Economy

Context

The RBI reduced the repo rate by 50 basis points to 5.5% and announced phased reduction of CRR by 100 bps, releasing ₹2.5 lakh crore liquidity.

Analysis of the news:

• Repo rate now stands at 5.5%

• Cash Reserve Ratio (CRR) to be cut to 3% of NDTL in phases

• Inflation under control; GDP growth forecast retained at 6.5% for 2025-26

• CRR cut expected to ease borrowing cost and improve credit availability.

2. PM Inaugurates Rail Projects in Jammu & Kashmir

Source: Page 1, The Hindu

Topic: GS Paper 1: Geography, GS Paper 3: Infrastructure

Context

PM Modi inaugurated the Chenab and Anji bridges and flagged off the Katra-Srinagar Vande Bharat train.

Analysis of the news:

• Chenab Bridge: World’s highest railway arch bridge.

• Anji Bridge: India’s first cable-stayed railway bridge.

• Part of USBRL (Udhampur-Srinagar-Baramulla Rail Link)

• Enhances connectivity, economy and national integration in J&K.

3. 800-Year-Old Shiva Temple Found in Tamil Nadu

Source: Page 4, The Hindu

Topic: GS Paper 1: Art & Culture

Context

Remains of a Pandya-period Shiva temple unearthed in Udampatti, Madurai.

Analysis of the news:

• Temple called Thennavanisvaram, dated to 1217–1218 CE

• Inscriptions mention land sale and self-sustaining temple economy

• Highlights Pandya architecture and governance

• Shows evidence of local taxation and water management systems

4. Waste Blocks Hydel Project in Kerala

Source: Page 6, The Hindu

Topic: GS Paper 3: Environment, Energy

Context

The Pallivasal hydel project faces delay due to solid waste clogging intake points in Munnar.

Analysis of the news:

• 60-MW extension affected by floating trash from town

• Project already contributed 100 MU to grid in trial

• Temporary and permanent measures underway including automated trash cleaner

• Reflects urban waste mismanagement impacting clean energy.

5. Kerala Lab Develops Test for Brain-Eating Amoeba

Source: Page 6, The Hindu

Topic: GS Paper 2: Health, GS Paper 3: Science & Technology

Context

Kerala PH Lab developed indigenous molecular test kits to detect toxic amoeba species causing brain infection.

Analysis of the news:

• Detects 5 amoeba species, incl. Naegleria fowleri, Acanthamoeba spp.

• Disease: Amoebic Meningoencephalitis, fatal brain infection

• Reduces dependency on national labs like PGI Chandigarh

• Aims for early detection and optimized treatment.

Check more: 06 June 2025 : Daily Current Affairs