Current Affairs 01 September 2025

Content

1. Partners, not rivals’: India & China
2. What are Blue Dragons, which caused beach closures in Spain?
3. Fertiliser crisis
4. Mini-cloudbursts’ are on the rise: IMD chief
5. The importance of India’s federal design
6. Inside the APK scam: how fake apps are used for financial fraud
7. Why NRIs are choosing India for medical tourism
8. Decoding cryptos

‘Partners, not rivals’: India & China

Relevance : GS 2(International Relations -Bilateral relations with China)

Context

• Event: PM Narendra Modi and Chinese President Xi Jinping met on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, China (August 31).
• Key Message: Both sides agreed to be “partners, not rivals”, emphasizing mutual trust and respect.
• Context: Meeting came after a five-year military standoff along the Line of Actual Control (LAC) in Eastern Ladakh.
• Objective: To gradually normalize bilateral ties strained by the border conflict.
• Readouts:
  • India’s stance: Strategic autonomy, fair trade, repairing ties.
  • China’s stance: Don’t let border issues define overall relations.
• Modi’s Visit: First trip to China in five years; also aimed at balancing global power shifts after turbulence in India–US ties (under Trump).
• Border Milestones:
  • Oct 2024: Border patrol leaders met, discussed sensitive points.
  • Aug 2025: 24th round of border talks held, easing tensions.
• Modi–Putin Meet: Same day, focus on tariffs after US levied 50% duty on Indian goods.

Strategic Context

• India–China ties oscillate between cooperation and competition.
• SCO platform used by India to engage without appearing weak, while balancing against US/Japan strategic pressures.
• Post-2020 Galwan clash, this marks India’s calibrated re-engagement.

Border Issue Management

• Border is core irritant; India insists peace at LAC is prerequisite for broader cooperation.
• China emphasizes compartmentalization – don’t let border disputes spill into trade/investment.
• Recent patrol-level and ministerial talks show slow but steady de-escalation.

Economic & Trade Angle

• China remains India’s largest trading partner despite tensions (>$135 bn trade, 2024).
• India seeks fair trade, reduced deficit, and technology access.
• China wants continued export market in India amid Western decoupling.

Diplomatic Rebalancing

• India leveraging ties with US, Japan, and Russia to avoid overdependence on China.
• Engagement with Xi signals India’s multi-alignment policy – strategic autonomy at core.
• “Partners, not rivals” line meant more for optics to stabilize ties ahead of SCO/BRICS agendas.

Security & Geopolitical Dimensions

• Both nations are nuclear powers and neighbors, yet security dilemma persists.
• India wary of China–Pakistan axis and China’s influence in Indian Ocean (String of Pearls).
• Dialogue reduces immediate risk of escalation, but trust deficit remains.

What are Blue Dragons, which caused beach closures in Spain?

Relevance : GS 3(Environment and Ecology- Marine Biodiversity)

What are Blue Dragons?

• Scientific Name: Glaucus atlanticus.
• Category: Small sea slug (gastropod mollusk), belongs to the family Glaucidae.
• Appearance:
  • Barely 4 cm long.
  • Striking blue & silver coloration → camouflage in ocean (countershading strategy).
• Habitat:
  • Float upside down on the ocean surface, drifting with currents.
  • Found in warm tropical/subtropical waters (Pacific, Atlantic, Indian Oceans).
• Feeding:
  • Prey on venomous cnidarians like Portuguese man o’ war, bluebottles, jellyfish.
  • Ingest venom & concentrate it in their finger-like appendages.
  • Their sting can be more potent than their prey.

Why Dangerous?

• Venom Potency:
  • Capable of delivering stings stronger than jellyfish they consume.
  • Toxins can cause severe pain, nausea, vomiting, allergic reactions.
  • In rare cases, may lead to death.
• Public Health Concern:
  • Presence along tourist beaches → caused closure of several beaches in Spain.

Global Distribution

• Recorded in: Australia, South Africa, India (rare sightings), USA (Texas), Portugal, Spain.
• Rare in the Mediterranean Sea, but recent sightings have increased.
• First record in Spain → 1839 (Canary Islands).
• Since 2016 → increasing frequency, linked to climate change & shifting ocean currents.

Why Rising Now?

• Climate Change Factor:
  • Mediterranean → among the fastest-warming seas (warming 20% faster than global oceans).
  • Rising sea surface temperature → 4–5°C anomalies.
  • Expanding habitats of tropical species into temperate zones.
• Ocean Currents & Wind Patterns:
  • Stronger winds & altered currents carry them closer to coasts.
• Food Availability:
  • Bloom in jellyfish populations → attracts blue dragons.

Ecological Role

• Predator of Jellyfish: Helps regulate jellyfish populations.
• Indicator Species: Their movement indicates shifts in ocean temperature & biodiversity patterns.

Conclusion

• Blue dragons are both a public health concern and an ecological indicator species, symbolizing how climate change-driven ocean warming and current shifts are altering marine biodiversity.
• Their rising presence in new habitats reflects broader climate challenges, requiring integrated responses in marine conservation, tourism safety, and coastal management policies.

Fertiliser crisis

Relevance : GS 3(Agriculture and Food Security -Fertiliser Production and Subsidies)

Context

• Rainfall & Crop Sowing
  • India had a very good southwest monsoon (June–August: 8.9% above normal rainfall).
  • Farmers planted more kharif crops: paddy, pulses, coarse cereals, maize.
  • As of Aug 22, rice acreage was 420.4 lakh hectares (vs 390.8 lakh last year).
• Fertiliser Consumption Surge
  • With more sowing, fertiliser demand shot up.
  • Major nutrients: Nitrogen (N), Phosphorus (P), Potassium (K), Sulphur (S).
  • Fertiliser sales (Apr–Jul 2025 vs Apr–Jul 2024):
    • Urea: 108.86 lt (+21.6%)
    • DAP: 56.68 lt (+33.6%)
    • NPKS: 50.03 lt (+15.5%)
    • SSP: 45.06 lt (+8.6%)
    • MOP: 12.42 lt (-43.6%)
• Imports & Supply Gaps
  • India imports ~25–30% of fertiliser needs.
  • Urea: imports down to 1.24 mt (Apr–Jun 2025) from 2.6 mt last year.
  • DAP: imports down to 1.88 mt from 2.1 mt.
  • Morocco & China are key suppliers.
  • Global supply disruptions and China’s export restrictions worsened shortages.
• Shortages & Queues
  • Farmers queued for urea/DAP at sowing time (July).
  • Pre-stocking by farmers added stress.
  • Shortage visible in rice-growing regions needing higher fertiliser doses.
• Policy Lessons
  • Govt underestimated higher fertiliser demand due to increased paddy acreage.
  • Future planning must account for fertiliser-intensive crops like rice/pulses.
  • Imports need advance booking; rabi demand must be secured early.

Why the Shortage Happened

• Domestic production lag: India still depends on imports for ~30% of fertilisers.
• High demand spike: Good monsoon encouraged extra planting, esp. rice.
• Global disruption:
  • China restricted exports of urea/DAP.
  • Morocco’s output limited.
  • Prices of raw materials like phosphoric acid and ammonia surged.
• Inefficient planning: Govt procurement underestimated demand in kharif 2025.

Economic Impact

• Farmers: Higher fertiliser prices in black markets, long queues at centres.
• Inflation risk: Fertiliser shortages can reduce yields → push up food inflation.
• Fiscal stress: Fertiliser subsidies already exceed ₹2 lakh crore annually; shortages may force more imports at higher costs.

Agriculture & Food Security

• Rice & Pulses (nitrogen-demanding crops) most affected.
• Potential yield losses if farmers can’t access fertiliser on time.
• Could reduce India’s exportable rice surplus, impacting global food markets.

Strategic Dependence

• India relies heavily on a few suppliers (China, Morocco, Oman, Russia).
• Import volatility = strategic vulnerability.
• Need for domestic revival of fertiliser manufacturing capacity.

Policy Lessons & Reforms

• Advance contracts for imports before kharif season.
• Diversify sourcing (Africa, Gulf countries, new FTAs).
• Invest in domestic production via joint ventures & PLI-type incentives.
• Promote alternative inputs: nano-urea, biofertilisers, integrated nutrient management.
• Better demand forecasting using satellite data & crop sowing trends.

‘Mini-cloudbursts’ are on the rise: IMD chief

Basics

• Cloudburst:
  • Sudden, extreme rainfall in a localized area (≥100 mm/hr over a few sq. km).
  • Common in hilly regions due to orographic lift and moisture-laden winds.
• Mini-cloudburst:
  • Smaller in scale, but with intense rainfall (typically 50–100 mm/hr).
  • Increasingly reported in recent years.
• Forecasting:
  • IMD states that cloudbursts remain “impossible to forecast” due to their highly localized and short-lived nature.
  • Mini-cloudbursts, though more frequent, are also hard to predict with current models.

Relevance : GS 3(Disaster Management – Floods , Cloudbursts, Environment – Climate Change)

Recent Rainfall Trends (2025 Monsoon till Aug 31)

• Overall Monsoon (June–Aug 2025): 6% above normal (76.2 cm vs usual 70 cm).
• Regional distribution:
  • Northwest India: +26% above normal (Uttarakhand, UP, Punjab, Haryana, J&K, Rajasthan, Delhi).
  • Central India: +8.6% above normal.
  • Southern Peninsula: +9.3% above normal; August rainfall (25 cm) = 3rd highest since 2001.
  • East & Northeast India: –17% deficit despite being the traditional rain-surplus zone.
• September Outlook: Expected above normal rainfall (+9% vs average 16.7 cm), continuing a trend noticed since 1980.

Heavy Rainfall Episodes

• August 2025:
  • 700+ instances of heavy rain (≥20 cm/day), 2nd highest since 2021 (behind 800+ in 2024).
  • Northern India: August rainfall = 26.5 cm, highest since 2001.
• Drivers of extreme events:
  • Interaction between Western Disturbances (from Mediterranean) and Bay of Bengal storms → convergence of moisture → intense rain bursts.
  • Resulted in devastating floods and landslides in Himachal Pradesh, J&K, Uttarakhand.

Key Analytical Insights

• Mini-cloudbursts on the rise:
  • May be linked to climate change-driven shifts: warming atmosphere holds more moisture, increasing probability of intense short-duration rainfall.
  • Urbanization + deforestation in hilly areas amplifies impacts (flash floods, landslides).
• Changing monsoon dynamics:
  • September becoming wetter since 1980 (possibly due to delayed monsoon withdrawal + oceanic-atmospheric changes like Indian Ocean Dipole).
  • Regional inequality: Surplus in NW & Central India, deficit in East & NE → disrupts agriculture, hydrology, disaster preparedness.
• Forecasting limitations:
  • While seasonal/weekly monsoon forecasts improving, sub-hourly localized predictions like cloudbursts remain beyond current radar and model resolution.
  • IMD using Doppler radars + AI-based nowcasting to reduce unpredictability.
• Policy & Preparedness Implications:
  • Need for micro-level disaster management plans, especially in Himalayan states and urban flood-prone zones.
  • Resilient infrastructure + improved early warning systems essential.

The importance of India’s federal design

Basics

• Context:
  • SC hearing Zahoor Ahmed Bhat v. UT of J&K.
  • Plea: non-restoration of statehood violates citizens’ rights + federalism (basic structure).
• SC stance:
  • Separation of powers → some decisions belong to govt., not judiciary.
  • But federal design of Constitution requires statehood restoration.

Relevance : GS 2(Polity and Constitution – Federalism, Statehood)

Constitutional Provisions on State Creation

• Article 1: India = Union of States, not a federation of states.
• Processes of State creation:
  • Admission: political unit joins India (e.g., J&K in 1947 through Instrument of Accession).
  • Establishment: acquisition under international law (e.g., Goa 1961, Sikkim 1975).
  • Formation (Art. 3): reorganisation of existing states → increase, decrease, alter boundaries/names.
• Limits of Art. 3:
  • Parliament can diminish a state’s area but cannot convert it into a Union Territory permanently.
  • Making J&K a UT is exceptional, not meant to be permanent.

Federal Design of India

• Union vs Federation:
  • Word Union chosen deliberately → strong Centre, inseparable unity.
  • Yet federalism built into Basic Structure → equitable distribution of powers/resources.
• Balance of power:
  • Unitary tilt → Centre strong enough to preserve unity & integrity.
  • Federal features → state participation & representation (Rajya Sabha permanent under Art. 83(1)).
• Basic Structure Doctrine (Kesavananda Bharati, 1973):
  • Federalism = unamendable feature of the Constitution.
  • Arbitrary dilution (e.g., indefinite UT status for J&K) undermines basic structure.

J&K Case Study

• 2019: J&K Reorganisation Act split J&K into UT of J&K + UT of Ladakh.
• Dec 2023 SC verdict:
  • Upheld abrogation of Articles 370 & 35A.
  • Directed restoration of statehood to J&K + assembly elections.
• Oct 2024: Elections to 90-member Assembly held, but statehood still withheld.
• Criticism:
  • Without statehood, federal balance tilted in favour of Union.
  • LG holds overriding power, reducing elected govt. authority → weakens democracy.

Constitutional Context

• Why statehood matters:
  • Ensures representation of people at Union level.
  • Strengthens federal bargain: Centre strong but States empowered.
  • Prevents constitutional inconsistency: a UT with an assembly ≠ true federal design.
• Implications of delay:
  • Creates trust deficit between Union & people of J&K.
  • Weakens cooperative federalism.
  • Sets precedent for excessive centralisation.
• Constitutional principle:
  • Restoring J&K’s statehood is not just political, but a constitutional necessity to uphold federalism.

What Next?

• Union Government: obligated (per SC) to restore J&K’s statehood.
• Timeline: Centre may justify delay citing ground realities/security concerns, but indefinite postponement undermines federal design.
• Broader lesson:
  • Federalism = cornerstone of Basic Structure.
  • States cannot be downgraded permanently to UTs without damaging India’s constitutional identity.

Inside the APK scam: how fake apps are used for financial fraud

Basics

• APK files: Android Package Kit files, used to install apps on Android (like .exe files on Windows).
• Modus operandi:
  • Victim gets a call/message claiming urgent action (blocked account, subsidy, electricity bill).
  • Sent a link to download an app disguised as a govt./bank portal.
  • App installs easily, mimics official branding.
  • Once permissions are granted, the device is compromised → financial & personal data stolen.

How the Fraud Works

• Permissions requested: access to SMS, contacts, call logs, notifications, location, microphone.
• Functions after install:
  • Monitors real-time activity.
  • Intercepts OTPs and passwords.
  • Closes fixed deposits, siphons funds.
  • Mirrors & transmits data to fraudster servers in encrypted form.
• Techniques:
  • Apps appear dormant during install to bypass antivirus checks.
  • Minor modifications to logo/name/URL allow reuse after blacklisting.

Scale of the Problem

• Cybercrime surge: 900% rise between 2021–2025 (Parliament data).
• National Cyber Crime Portal (2025): 12,47,393 cases logged in 6 months.
• Telangana Cyber Security Bureau (Jan–Jul 2025):
  • 2,188 APK fraud cases.
  • ₹779.06 crore lost.
  • 20–30 cases/day; daily loss = ₹10–15 lakh.
  • High-value scams: up to ₹30–40 lakh each.
• Apps in circulation: Hundreds of cases linked to ~10 core APK files reused repeatedly.

Who Operates These Apps?

• Local ecosystem:
  • 60–70% developed in India (Delhi-NCR, Meerut, UP, Jamtara, Jharkhand).
• International linkages:
  • 30–40% traced to U.S., U.K., China.
• Distribution channels:
  • Telegram channels, dark web marketplaces, pre-built APK kits sold for a fee.
• Organised underground economy: coders, distributors, mule account handlers.

How Victims Are Targeted

• Digital surveillance & data leaks:
  • Fraudsters purchase leaked customer databases (from malls, hospitals, service portals).
  • Data includes names, numbers, emails, addresses, income, profession.
• Target profile:
  • High-earning professionals (doctors, bankers, teachers, real estate agents).
• Social engineering:
  • Messages are customised, urgent, and exploit trust to force quick action.

Investigations & Challenges

• Cyber forensics:
  • Only 20–30% of APKs successfully decrypted.
  • Often reveal just server addresses, rarely developer signatures.
• Financial trails:
  • Stolen funds funneled into mule accounts, quickly converted into cryptocurrency.
  • Local accomplices sometimes arrested, masterminds remain elusive (esp. offshore).
• Tech interventions:
  • Google removed ~50 malicious apps recently.
  • But platforms don’t pre-scan all hosted apps; fraudsters use fake identities for hosting/publishing.

Comprehensive Analysis

• Structural Drivers:
  • Widespread smartphone penetration + digital payments boom.
  • Weak cyber hygiene & low awareness among users.
  • Cheap dark web data sets fueling targeted scams.
• Systemic Gaps:
  • Lack of strong pre-screening by app stores.
  • Delays in forensic decryption and inter-agency coordination.
  • International jurisdiction hurdles in catching masterminds.
• Economic & Social Impact:
  • Daily financial hemorrhage of ₹10–15 lakh.
  • Trust deficit in digital systems, affecting adoption of fintech/government platforms.
• Policy Imperatives:
  • Stricter KYC norms for digital wallets and hosting accounts.
  • Mandatory app vetting by intermediaries.
  • Investment in cyber forensic capacity and cross-border cooperation.
  • Public awareness campaigns on phishing & fake apps.

Why NRIs are choosing India for medical tourism

Basics

• Medical tourism: Traveling across borders to seek healthcare due to cost, quality, or accessibility reasons.
• NRI context: Rising healthcare costs abroad, distance from family, and affordability in India make it an attractive option.
• Key drivers:
  • Cost savings (60–90% cheaper vs. U.S./Europe).
  • Comparable or superior quality of care in many specialties.
  • Growing adoption of health insurance policies tailored for NRIs.
  • Digital ease in policy purchase and claim settlement.

Relevance : GS 2(Social Issues- Healthcare)

Cost Advantage

• Heart bypass surgery:
  • U.S.: $70,000–$1,50,000
  • India: $5,000–$8,000
• Knee replacement:
  • U.S.: up to $50,000
  • India: $4,000–$6,000
• Complex surgeries:
  • U.S.: > $1,00,000
  • India: $10,000–$20,000
• Medicines: Up to 90% cheaper in India compared to global markets.
• Insurance premiums: 25–40 times cheaper in India vs. U.S./GCC.

Adoption of Health Insurance by NRIs

• Growth trend: >150% rise in NRI adoption in 1 year.
  • Young NRIs (<35 years): 148% growth.
  • Women buyers: 125% growth.
• Coverage: Includes parents/elderly living in India.
• Recurring care: Helps cover long-term costs of cancer, respiratory, cardiac, and infectious diseases.

Policy & Digital Push

• Government initiatives: Heal in India, promoting India as a healthcare hub.
• Digital platforms: NRIs can explore, compare, and buy insurance remotely.
• Cashless claims: Seamless access across Indian hospitals, bridging geographical distance.
• Tier-3 cities rising: ~50% of NRI claims now from smaller hubs (Thrissur, Kollam, Thane) besides metros (Hyderabad, Chennai, Kochi, Thiruvananthapuram).

Healthcare Infrastructure & Quality

• Accredited hospitals: India has >40 JCI-accredited hospitals meeting global standards.
• Specialties in demand: Cardiology, oncology, organ transplants, orthopedics, dentistry.
• Doctor pool: Large number of English-speaking, globally trained doctors.
• Technology: Advanced robotic surgeries, telemedicine, and diagnostics.

Financial Ripple Effect

• Direct impact: Savings on procedures free up funds for mortgages, education, retirement.
• Macro-level effect: India’s medical tourism market is expected to cross $13 billion soon.
• Insurance as a catalyst: Extends protection beyond surgery costs → covers recurring illnesses.
• Regional development: Smaller towns benefit as insurance claims and hospital infra expand beyond metros.

Comprehensive Analysis

• Push factors abroad:
  • Exploding healthcare costs in U.S. & GCC.
  • Long wait times for elective surgeries in U.K./Canada.
  • Limited insurance portability for NRIs abroad.
• Pull factors in India:
  • Affordability without quality compromise.
  • Comprehensive insurance offerings for NRIs and families.
  • Emotional and cultural comfort of being treated near family.
• Challenges:
  • Quality disparity between top-tier hospitals and smaller facilities.
  • Need for transparent insurance claim processing.
  • Risk of over-commercialization of care.
• Future outlook:
  • With digital health ecosystems, expanded insurance, and govt. policy support, India is positioned as a global hub combining healthcare + financial protection.

Decoding cryptos

Basics

• Blockchain recap: A digital, decentralised ledger where transactions are recorded in blocks linked sequentially.
• Verification need: Every transaction must be validated before being added to the blockchain.
• Difference from banks:
  • Banks → verified by officials in a centralised system.
  • Cryptos → verified by miners/validators in a decentralised network.
• Consensus mechanism: The method by which blockchain participants agree on the validity of transactions.

Relevance : GS 3(Economy – Digital Currencies , Technology – Block Chain

Consensus Mechanisms

• Proof of Work (PoW):
  • Miners solve complex puzzles using computing power.
  • Winner adds block + earns rewards (coins + fees).
  • Secure but energy-intensive, slow, costly.
  • Example: Bitcoin.
• Proof of Stake (PoS):
  • Validators chosen based on how much crypto they “stake.”
  • Honest validators earn fees/rewards; dishonest ones lose staked coins.
  • Faster, more energy-efficient.
  • Example: Ethereum (post-Merge), Solana.
• Core purpose of both: Prevent fraud, ensure security, incentivize participation.

Other Consensus Mechanisms (Emerging)

• Delegated Proof of Stake (DPoS): Voting system where stakeholders elect validators (EOS, Tron).
• Proof of Authority (PoA): Validators selected based on reputation/identity.
• Hybrid models: Combining PoW + PoS for balance of security and scalability.

Key Factors Before Investing in Cryptos

• Network security: Must have active, decentralised nodes that resist hacking.
• Transaction efficiency: Speed (TPS – transactions per second) + fees (affect usability).
• Market reputation: Coin’s history, community support, transparency of developers.
• Real-world utility: Adoption potential in payments, finance, supply chain, gaming, healthcare.
• Volatility: Prices swing dramatically; not suitable for risk-averse investors.
• Regulatory environment: Varies across countries; legal uncertainty remains a big risk.

Types of Cryptocurrencies

• Bitcoin (BTC): First, most famous; store of value (“digital gold”).
• Altcoins:
  • Ethereum: Smart contracts, DeFi, NFTs.
  • Solana, Cardano, Polygon: Faster transactions, scalable dApps.
• Stablecoins: Pegged to assets (e.g., USDT, USDC); reduce volatility.
• Utility tokens: Access to services (Binance Coin, Chainlink).
• Governance tokens: Voting rights in decentralised organisations (UNI, AAVE).
• Meme coins: Community/hype driven (Dogecoin, Shiba Inu).
• Sector-specific coins: Gaming (Axie Infinity), supply chain (VeChain), finance (Ripple/XRP).

Opportunities

• Wealth creation: Early adopters of BTC/ETH saw exponential gains.
• Financial inclusion: Provides access where banking infrastructure is weak.
• Innovation: Smart contracts, decentralised finance (DeFi), NFTs, tokenisation of assets.
• Portfolio diversification: Non-correlated asset, but very high risk.

Risks & Challenges

• Extreme volatility: Gains/losses can exceed 30% in days.
• Regulatory crackdowns: Uncertain legal status in India, US, EU.
• Scams & rug pulls: Many coins are hype-based, without real value.
• Environmental impact: PoW energy consumption (e.g., Bitcoin mining).
• Custody risk: Losing private keys = permanent loss of funds.
• Liquidity traps: Small coins may lack active buyers/sellers.

Takeaways

• Cryptos are more than speculation: They represent a new financial architecture (DeFi, Web3, tokenised economies).
• Long-term value likely lies in:
  • Coins with real-world utility (payments, contracts, decentralised apps).
  • Strong developer community + transparent governance.
• Short-term risk: High; better suited for informed, risk-tolerant investors.
• Cautionary stance: Research > Hype. Diversify. Don’t over-allocate.
• Global future: Cryptos may evolve into mainstream finance if regulation balances innovation + investor protection.