Current Affairs 27 September 2025

Content

1. Trump slaps tariffs on drugs, trucks, furniture
2. New farming technology holds potential to stop desertification
3. Giving warriors a fighting chance
4. MiG-21 jets fly into history after 6 decades of service
5. Govt. survey on R&D in India gets weak response from private sector
6. The India-EU Strategic Agenda

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Trump slaps tariffs on drugs, trucks, furniture

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What Happened ?

• Event: U.S. President Donald Trump announced new tariffs on imported goods on September 25.
• Details of Tariffs:
  • 100% tariff on branded and patented pharmaceutical products.
  • 25% tariff on heavy-duty trucks.
  • 50% tariff on kitchen cabinets and bathroom vanities.
  • 30% tariff on upholstered furniture.
• Effective Date: October 1.

Relevance :

• GS II (IR): India-U.S. trade relations, protectionism, Section 232 investigations.
• GS III (Economy): Impact on Indian pharmaceutical exports, generics vs branded drugs, global supply chains, Make in India implications.

Stated Reason

• Trump cited “large-scale flooding” of imported goods into the U.S. from foreign countries.
• Part of a broader protectionist trade policy, emphasizing U.S. manufacturing and domestic investment.

Legal & Policy Context

• The tariffs are aimed at better-established legal authorities after risks associated with previous global tariffs under Supreme Court scrutiny.
• Exemptions proposed: Companies already investing in U.S. manufacturing plants.
• Investigations under Section 232 (national security) ongoing, primarily focused on metals; generics appear largely exempt.

Indian Pharmaceutical Exports

• India’s Global Position:
  • Largest supplier of generic drugs globally, covering ~40% of global generics demand.
  • Supplies to the U.S. account for ~20% of Indian pharma exports, valued at approximately $5.7 billion in FY2024-25.
• Export Composition:
  • Generics: ~80–85% of exports to the U.S.
  • Branded / Patented Drugs: ~15–20% (smaller segment, mostly by multinational subsidiaries).
• Impact Assessment:
  • The 100% tariff on branded drugs will not significantly affect Indian generics exports.
  • Companies like Sun Pharma, Dr. Reddy’s, Cipla have U.S.-based manufacturing or re-packaging units, making them largely exempt from tariffs.
• Risk Mitigation: Indian industry advised to monitor policy shifts and Section 232 investigations.

Indian Trade & Economic Linkages

• Bilateral Trade (FY2024-25):
  • India-U.S. total trade: ~$161 billion
  • Pharmaceutical exports: ~$10–11 billion
  • India is a net exporter of pharma to the U.S.
• Indirect Advantage:
  • Higher U.S. tariffs on branded drugs could shift demand to Indian generics, benefiting mid-sized and small pharma exporters in the short term.

Strategic Implications for India

• Trade Diversification:
  • Encourages Indian pharma to invest in U.S.-based manufacturing to bypass tariffs.
  • Reinforces Make in India for exports, enhancing global supply chain reliability.
• Policy Awareness:
  • Need for exporters to monitor Section 301 / Section 232 investigations and U.S. tariff notifications.
• Opportunity:
  • U.S. tariffs could increase competitiveness of Indian generics, particularly in hospital and retail markets.

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New farming technology holds potential to stop desertification

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What’s Happening ?

• Innovation: Desert ‘soilification’ technology using an indigenous bioformulation.
• Objective: Convert arid desert sand into agriculturally productive soil, combating desertification in western Rajasthan.
• Location: Banseli village, Ajmer district, Rajasthan (edge of Thar desert).
• Timeline: Seeds sown in November 2024, harvested April 2025.
• Crop: Wheat variety Wheat-4079, indigenous.
• Yield Outcome:
  • 13 kg seeds → 260 kg wheat per 1,000 sq. metres (ratio 1:20).
  • Higher than normal wheat agriculture.
• Irrigation Efficiency: Only 3 cycles required instead of 5–6 in conventional wheat farming, showing high water retention.

Relevance :

• GS III (Environment & Agriculture): Desertification, soil degradation, water-efficient biotech farming, dryland crop diversification.
• GS II (Governance): Role of CUoR, KVK, Rajasthan Horticulture Dept; policy relevance for Desert Development Programme.

Why It’s in the News ?

• Environmental significance: Technology could stop the expansion of Thar desert towards the National Capital Region (NCR).
• Societal impact: Demonstrates applied science turning into productive agriculture in hostile conditions.
• Policy relevance: Supports sustainable agriculture, desert management, and water conservation, linked to GS III topics like Environment, Agriculture, and Disaster Management.

Scientific Background

• Technology:
  • Sand transformed into soil-like structure using polymers and bioformulations.
  • Promotes cross-linking of sand particles and stimulates beneficial microbes.
  • Enhances stress resistance of crops in arid conditions.
• Laboratory Trials:
  • Crops tested: Bajra, guar gum, chickpea.
  • Result: 54% higher yield in bioformulation-amended sand.
• Field Trials:
  • Pilot wheat crop on 1,000 sq. metres of desert land.
  • Success demonstrates scalability in real desert conditions.

Institutional Support

• Lead Institution: Central University of Rajasthan (CUoR), Department of Microbiology.
• Collaborators:
  • Krishi Vigyan Kendra (KVK): Layout planning and scaling of field trials.
  • Rajasthan Horticulture Department: Field facilitation.
• Research Team: Led by Prof. Akhil Agrawal, executed by research scholar Diksha Kumari.

Future Plans

• Crop Expansion: Plan to grow millet, green gram, and other dryland crops.
• Geographic Expansion: Extend technology across Rajasthan and other arid regions of India.
• Sustainability: Reduce water dependency in agriculture, address desertification and soil degradation.

Broader Context

• Environmental Concern:
  • Desertification in western Rajasthan, worsened by:
    • Degradation of Aravali ranges.
    • Unscientific plantation drives.
    • Changes in rainfall patterns and sand dune spread.
• Agricultural Significance:
  • Provides a solution to low productivity in arid lands.
  • Demonstrates integration of biotechnology and sustainable farming.
• Global Relevance: Could be a model for desert agriculture in other arid regions worldwide.

Strategic Implications

• Climate Adaptation: Shows potential for water-efficient farming under extreme climatic conditions.
• Technology Transfer: Can inform government schemes like Desert Development Programme and watershed management initiatives.
• Socioeconomic Impact: Promotes livelihood security in marginal lands, improves local food production, and may reduce migration from desert areas.

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Giving warriors a fighting chance

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What’s Happening ?

• Establishment: NCDE was set up in 2020 at the CRPF Group Centre, Hakimpet, Hyderabad.
• Purpose: Exclusive facility for CAPF personnel who become physically disabled in the line of duty.
• Achievements in 5 years:
  • Trained 219 Divyang warriors (physically challenged personnel).
  • Produced medal-winning para-athletes and skilled IT professionals.
• Target Group: Personnel injured in Left Wing Extremism (LWE) operations, counter-terrorism, insurgency, accidents, or road incidents during service.

Relevance :

• GS III (Security): CAPF personnel welfare, rehabilitation, operational readiness.
• GS II (Governance): Skill development, inclusive policies for Divyang personnel, government schemes integration.

Why It’s in the News ?

• Focus on rehabilitation: Highlights India’s efforts to integrate disabled CAPF personnel into productive roles rather than mere financial compensation.
• Human-interest angle: Stories of trauma, resilience, and medal-winning achievements bring attention to the physical and psychological challenges faced by personnel.
• Policy relevance: Demonstrates government initiatives for welfare, skill development, and sports promotion for Divyang personnel, relevant for GS III topics: Security, Defence, and Welfare Programs.

Background 

• LWE operations:
  • 38 districts affected in India; 15 in Chhattisgarh (2024).
  • Operations reduced LWE districts from 126 (2013) to 18 (April 2025).
• Risk to personnel:
  • Frequent IED explosions and ambushes.
  • Since 2016, 46 CRPF personnel lost limbs in LWE operations.
  • 2023: 10 personnel underwent amputations.
• Government directive: Injured personnel allowed to continue service until retirement with full benefits, supported with best medical care and prosthetics.

NCDE Facilities & Rehabilitation Approach

• Campus:
  • 180 barracks, 100+ wheelchair-friendly.
  • Equipped with ramps, elevators, motorised buggies, and hospital for emergencies.
• Physical rehabilitation:
  • Gym with specialized machines, physiotherapy rooms, gait training, and strength building.
  • Artificial limbs: 106 fitted, 135 pending (as of July 2025).
• Mental health support:
  • Counselling for PTSD, trauma care, and phantom limb syndrome.
  • Meditation and mindfulness sessions.
• Skill & Career support:
  • Sports training: Archery, discus, shot put, national/international competitions.
  • IT training in collaboration with BITS Pilani.
  • Desk/clerical jobs for personnel choosing non-sports paths.

Policy & Institutional Significance

• Single-window system: Consolidates rehabilitation, medical care, prosthetics, counselling, and career planning.
• Government support:
  • Financial: CAPF welfare fund, Bharat Ke Veer donations, CGHS coverage for prosthetics.
  • Employment: Retention in service, reassignment, and sports promotion.
• Strategic importance:
  • Enhances morale and operational readiness.
  • Reduces psychological burden of injury among serving personnel.

Strategic Implications

• Resilience & adaptation: Personnel demonstrate extraordinary willpower and adaptability—translating combat endurance into sports and professional excellence.
• Best practices for other forces: NCDE model can be replicated across CAPFs and armed forces for comprehensive injury rehabilitation.
• Policy integration: Highlights need for continuous welfare, mental health support, and skill development for personnel with service-related disabilities.

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MiG-21 jets fly into history after 6 decades of service

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What’s Happening ?

• Event: Indian Air Force (IAF) formally retired its last MiG-21 fighter jets on September 26, 2025, at Chandigarh Air Force Station.
• Squadrons retired:
  • No. 23 Panthers
  • No. 3 Cobras
  • Together operated 36 aircraft.
• Significance: MiG-21 served the IAF for over six decades (1963–2025) and participated in major conflicts and operations.

Relevance :

• GS III (Defence & Security): Fleet modernization, indigenous aircraft programs (LCA-Tejas, AMCA), operational capability.
• GS II (IR / Strategic Affairs): India-Russia defence cooperation, regional security implications (China, Pakistan).

Why It’s in the News ?

• Historical moment: Marks the end of an era for India’s first-generation supersonic fighter fleet.
• Operational implications: IAF’s fighter squadron strength reduces to 29, below the sanctioned strength of 42, highlighting a gap in operational readiness.
• Emotional and symbolic: Ceremony attended by Defence Minister, IAF chiefs, veterans; includes aerial displays by Tejas, Jaguar, and Surya Kiran team.

Historical Significance of MiG-21

• Induction: 1963, frontline interceptor and multi-role fighter.
• Key Conflicts / Operations:
  • 1971 Indo-Pak war
  • Kargil conflict
  • Balakot air strikes
  • Operation Sindoor
• Attributes: Single-engine, single-seater, versatile, low-maintenance, and symbol of Indo-Russian defence collaboration.
• Upgrades over time: MiG-21 Bison and other variants sustained relevance until retirement.

India-Russia Strategic Context

• MiG-21 legacy: Not just a fighter jet, but also a marker of India-Russia defence ties.
• Technology transfer: MiG-21 program enabled Indian engineers and pilots to gain expertise in fighter operations, maintenance, and upgrades.
• Strategic cooperation: Retirement highlights the transition from Soviet-era platforms to indigenous Indian aircraft (LCA-Tejas, AMCA).

Current Operational Status

• Squadron strength: 29, lowest since the 1960s.
• Fleet gap: Retirement of MiG-21 reduces interceptor capability and frontline fighter coverage.
• Replacement plans:
  • LCA-Tejas operational in several squadrons; additional orders signed.
  • Advanced Medium Combat Aircraft (AMCA) in development.
  • Emphasis on indigenization and modern multirole fighters.

Lessons and Strategic Implications

• Legacy of MiG-21:
  • Operational resilience and adaptability.
  • Foundation for training, doctrine, and indigenous aircraft development.
• Current challenge: Fighter fleet is below sanctioned strength, stressing the need for fast induction of Tejas and other modern jets.
• Future focus:
  • Strengthen indigenous aircraft programs (LCA-Tejas, AMCA).
  • Maintain operational readiness during fleet transition.
  • Enhance multi-role capabilities to replace aging Soviet-era aircraft.

Broader Defence Context

• Modernization: Retirement underscores urgent fleet modernization in light of regional threats (China, Pakistan).
• Indigenization: Signals shift from dependency on Russian imports to domestic fighter programs.
• Capability gap: Reduction to 29 squadrons highlights need for strategic procurement, training, and force planning.

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Govt. survey on R&D in India gets weak response from private sector

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What’s Happening ?

• The Science and Technology Ministry conducts a biennial National Science and Technology Survey to assess the state of scientific research in India.
• The latest edition (launched December 2024) surveys ~8,000 R&D bodies (public & private).
• Purpose: Measure domestic R&D expenditure, GDP share, number of scientists, patents, and overall global standing.
• Issue: Publication of results is being postponed due to weak response from private sector R&D firms.

Relevance :

• GS III (Science & Technology): R&D expenditure, innovation ecosystem, patents, STEM workforce.
• GS II / III (Governance & Policy): Public-private participation, policy planning, global competitiveness.

Why It’s in the News ?

• Government & industry gap: While 73% of government R&D institutions responded, only 35% of Indian industry bodies and 9% of multinational companies submitted data by September 2025.
• Impact: Delays the release of critical data that informs policy-making, planning, and benchmarking India’s scientific capacity.
• Event Highlight: FICCI workshop held to encourage private sector participation.

Survey Methodology

• Data collected via detailed questionnaires sent to institutions.
• Identities of firms are masked, but data provide trends for:
  • Domestic R&D expenditure
  • R&D’s share of GDP
  • Scientist demographics, including gender ratio
  • Patents and innovation output
  • Comparative position of India globally

Key Findings ?

• Government contribution dominates: ~75% of India’s R&D spending comes from public sector.
• Private sector contribution is limited, unlike advanced economies where private firms dominate R&D funding.
• Challenges cited by industry:
  • Unclear definition of “R&D spending” in questionnaires.
  • Comparison with advanced economies deemed premature given India’s GDP per capita.
  • Administrative burden in filling detailed survey data.

Policy Implications

• Need for private sector engagement: India’s R&D ecosystem is heavily public-funded, limiting innovation, global competitiveness, and industrial growth.
• Data-driven policy: Survey results inform policies on:
  • Funding allocation
  • Incentives for private R&D
  • STEM workforce planning
  • Patent & IP ecosystem strengthening
• International benchmarking: Weak private participation may skew India’s comparative R&D ranking globally.

Contextual Analysis

• Global comparison:
  • Advanced economies rely on private R&D (60–70% of total), e.g., US, Germany, Japan.
  • India relies 75% public funding, indicating need for industrial innovation push.
• Economic relevance: Strong private R&D is essential for technology-intensive industries, startups, and exports.
• Government initiatives:
  • Workshops with FICCI to mobilize private sector participation.
  • Likely extension of deadline to Nov 30, 2025, to increase submissions.

Challenges

• Data clarity: Ambiguity in defining R&D spending metrics.
• Compliance burden: Lengthy forms and reporting requirements.
• Perception gap: Private sector feels India’s R&D spending is already significant relative to GDP; reluctant to report.
• Global benchmarking pressure: Concerns that India may be unfairly compared with industrially advanced nations.

Way Forward 

• Simplify reporting: Provide clearer guidelines and definitions for R&D expenditure.
• Incentivize participation: Link data submission to policy benefits or recognition.
• Enhance public-private partnerships (PPP): Encourage co-investment, joint research, and innovation clusters.
• Benchmarking & transparency: Use data for targeted policy interventions to strengthen India’s R&D ecosystem and global competitiveness.

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The India-EU Strategic Agenda

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Background and Context

• Timing: Ahead of the India-EU leaders’ summit scheduled for February next year, weekly preparatory meetings are planned.
• Reason: With the US under Trump showing unpredictability in global alliances, the EU positions itself as a predictable, all-weather partner for India.
• Official Document: EU issued a Strategic Agenda for India-EU ties based on five pillars:
  • Economy & Trade
  • Emerging Technologies
  • Security & Defence
  • Global Connectivity
  • People-to-People Ties

Relevance :

• GS II (IR): Strategic partnership, FTA, investment protection, migration, people-to-people ties.
• GS III (Economy & Tech): Trade flows, technology transfer, industrial competitiveness, supply chain resilience.
• GS II/III (Security): Indo-Pacific security, maritime & cyber cooperation, counterterrorism.

Economy & Trade

• EU as a Partner:
  • EU is India’s largest trading partner; India is the EU’s largest partner in the Global South.
  • 2024 trade: Goods €124 billion, Services €90+ billion. EU exports €80 billion services to India.
• Investment & Employment:
  • 6,000 European companies in India employ 3 million directly, millions indirectly.
  • FDI: EUR 140 billion (2023), doubling in 5 years.
• Trade Imbalances:
  • India accounts for <2.2% of EU trade in goods/services.
  • Indian investment in EU: EUR 10 billion.
• Agreements in Progress:
  • Free Trade Agreement (FTA): To reduce tariff & non-tariff barriers, target completion by end 2025.
  • Investment Protection Agreement (IPA), Geographical Indications agreement, Comprehensive Air Transport Agreement, Macroeconomic & financial dialogue.

Global Connectivity

• EU Global Gateway: Mobilises EUR 300 billion for energy, digital, and transport infrastructure globally.
• India Initiatives: MAHASAKTI and MHASG (Security & Growth).
• Goal: Strengthen physical and digital connectivity between EU and India, opening new commercial opportunities for businesses.

Emerging Technologies

• EU Strengths: World-class research, digital infrastructure, regulation, green & digital tech expertise.
• India Strengths: Skilled workforce, large datasets, vibrant digital economy, strong startup ecosystem.
• Objective: Joint development and tech transfer, fostering innovation and industrial competitiveness.

Security & Defence

• Strategic Dialogue: Launched in June 2022, addressing maritime security, cyber security, counterterrorism, non-proliferation.
• Agreements in Negotiation:
  • EU-India Security & Defence Partnership Agreement
  • Security of Information Agreement for classified info sharing
• Cooperation Areas:
  • Counterterrorism, terror financing, online propaganda, drug trafficking
  • Dual-use technology, supply chain security, innovation
  • EU-India naval cooperation in the Western Indian Ocean
• Strategic Alignment: EU’s Indo-Pacific security agenda aligns with India as a regional stability pillar.
• Economic Security Link: Stronger customs and technological collaboration improves industrial competitiveness and supply chain resilience.

People-to-People Ties

• Migration:
  • 825,000 Indians in EU (largest group with Blue Cards & transfers).
  • Focus on legal migration, tackling illegal flows.
• Education & Research:
  • Enhance student, academic, and researcher exchanges.
  • Attract top Indian talent amid US restrictions under Trump.
• Cultural & Social Exchange: Strengthen soft power and bilateral understanding.

Strategic Takeaways

• Economic Diplomacy: FTA, IPA, and investment flow aim to deepen bilateral trade and industrial cooperation.
• Tech & Innovation: Collaboration on emerging and green technologies positions India as a key innovation partner.
• Security & Regional Stability: Shared interests in maritime security, cyber resilience, and Indo-Pacific stability.
• Soft Power & People Mobility: Strong focus on migration, education, and cultural ties, complementing strategic and economic objectives.
• EU Positioning: Offers predictable alternative to US; sees India as a core partner in Global South and Indo-Pacific.

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