Current Affairs 06 June 2025

Content :

1. Trump revives controversial travel ban against 12 nations
2. UMEED portal set to go live, Telangana Waqf Board ‘waiting for clarity’ on managing properties
3. Is IBC an effective resolution tool?
4. AI’s unchecked ascent: How big tech is outpacing the regulatory rulebook
5. Dassault Aviation ties up with Tata for Rafale fighter fuselage production in India
6. Digital Census to speed up enumeration, aid policies with timely and accurate data: Centre

Trump revives controversial travel ban against 12 nations

Relevance : GS 2(International Relations)

Stated Justification

• Triggered by a flamethrower attack at a Jewish protest in Colorado.
• Suspect alleged to be an illegal immigrant, prompting concerns over security loopholes.
• Exemptions: Athletes from these countries participating in the 2026 FIFA World Cup and 2028 Los Angeles Olympics are exempt.

Geopolitical and Diplomatic Implications

• 7 out of 12 fully banned countries are in Africa:
  • African Union strongly criticized the move, citing damage to:
    • Educational exchange
    • Commercial relations
    • Diplomatic engagement
    • People-to-people connectivity
• May cause further alienation of African and Muslim-majority nations.

Domestic and Legal Ramifications

• Echoes Trump’s 2017 travel ban, which faced strong legal opposition and multiple lawsuits.
• Civil rights groups likely to challenge the order in court again.
• Raises questions about immigration policy continuity and targeted discrimination.

Economic & Social Impact

• Potentially affects:
  • Students, scholars, and researchers from banned countries
  • Migrant workers and families seeking reunification
  • Tech and healthcare sectors relying on skilled migrants from these regions
• Could lead to a decline in U.S. soft power and educational appeal globally.

Political Strategy

• Aligns with Trump’s “America First” narrative and hardline immigration stance.
• Likely aimed at consolidating support among his conservative voter base ahead of electoral milestones.
• May serve as a distraction tactic from domestic controversies (e.g., Harvard crackdown).

Potential Repercussions

• May escalate anti-U.S. sentiment in affected regions.
• Could strain bilateral ties and cooperation in areas like:
  • Counterterrorism
  • Climate diplomacy
  • Global health initiatives
• May backfire by fueling extremist propaganda.

UMEED portal set to go live, Telangana Waqf Board ‘waiting for clarity’ on managing properties

About the UMEED Portal

• UMEED stands for Unified Waqf Management, Empowerment, Efficiency, and Development.
• Initiative by the Union Ministry of Minority Affairs.
• Aims to collate documents related to waqf properties for better management and transparency.
• Scheduled to go live imminently with a six-month window for uploading documents.

Relevance : GS 2(Governance )

Concerns from Telangana State Waqf Board (TGSWB)

• TGSWB is still awaiting clear guidelines on:
  • What documents are required.
  • Which formats or types will be accepted.

• Uncertainty over historical properties:
  • Many Qutb Shahi-era mosques lack formal documentation.
  • Board unsure how to handle such legacy cases on the portal.

Technical and Operational Concerns

• Portal to follow a three-tier approval system:
  • Mutawalli uploads property documents (e.g., gazette notifications).
  • TGSWB officer verifies submissions.
  • CEO of TGSWB grants final approval.

• Previous online management system to be discontinued.
  • No data migration from old portal to new one.
  • Raises concerns over loss of existing digital records.

Legal and Procedural Issues

• TGSWB suggests Centre should have waited for the Supreme Court judgment related to Waqf property management before rollout.
• The premature launch could lead to confusion or legal inconsistencies in handling waqf property rights.

Steps Taken by TGSWB

• Actively collecting and updating documentation.
  • CEO has reached out to government agencies for official property papers.
  • Field staff deployed to obtain and verify waqf records.

Broader Implications

• Highlights the gap between central policy rollout and state-level preparedness.
• Risks of alienating religious institutions due to lack of consultation or clarity.
• Raises issues of digital transition in governance without adequate groundwork or coordination.

Is IBC an effective resolution tool?

Why was IBC introduced?

• Enacted in 2016 as India’s first comprehensive bankruptcy law.
• Aimed to:
  • Shift control from debtors to creditors.
  • Ensure time-bound resolutions (within 330 days).
  • Improve creditor recovery and reduce judicial delays.
  • Replace fragmented, inefficient earlier mechanisms.

Relevance : GS 3(Banking ) ,GS 2(Governance)

Impact on Borrower Behaviour & Credit Discipline

• Led to a cultural shift in how borrowers respond to financial distress.
• Borrowers now show proactive distress resolution due to credible threat of insolvency.
• Supreme Court remark: “The defaulter’s paradise is lost.”
• Over 30,000 cases settled before admission, covering defaults worth₹13.78 lakh crore.
• Study by IIM-Bangalore found:
  • Reduction in cost of debt for distressed firms.
  • Improved corporate governance (more independent directors).
  • Credit discipline significantly improved.

IBC as a Recovery Tool

• Dominant route for bank recoveries in FY 2023–24 (48% of total recoveries).
• Recovery rate of 32.8% on admitted claims.
• Resolutions fetched over 170.1% of liquidation value.
• Resolution plans achieved 93.4% of fair value on average.
• Out of total cases, 2,758 went into liquidation, but 10 companies were resolved for every 5 liquidated.

Challenges Facing IBC

• Judicial delays at NCLT/NCLAT slow down the resolution process.
• Cases often get caught in extended litigation, risking asset value erosion.
• Lack of clarity in non-traditional enterprise defaults (IP valuation, tech assets, employee dues).
• No data migration from earlier digital systems into UMEED-like platforms.

Post-Resolution Uncertainty

• Bhushan Steel verdict reignited fear of judicial reversals after resolution implementation.
• Such reversals threaten commercial finality, reducing investor confidence.
• Risk: Applicants may hesitate to invest in distressed assets due to lack of certainty.

Way Forward

• Strengthen tribunal infrastructure (faster benches, trained staff).
• Institutionalize pre-packaged insolvency for faster resolution.
• Ensure judicial restraint in re-evaluating commercial decisions post-resolution.
• Build a more future-ready IBC that accommodates:
  • Startups
  • Digital and IP-heavy firms
  • Service-based economies

Conclusion

• The IBC has been a game-changer for India’s insolvency landscape.
• While it has improved credit discipline and recovery outcomes, its success depends on balancing judicial oversight with commercial pragmatism.
• As India moves toward a $5 trillion economy, a robust, predictable, and evolving insolvency framework is essential.

AI’s unchecked ascent: How big tech is outpacing the regulatory rulebook

Rapid Growth of AI by Tech Giants

• Major players like OpenAI, Meta, Google, Microsoft, and Anthropic are advancing AI at an unprecedented pace.
• Frequent model upgrades and wider public deployments signal a competitive AI arms race.
• Their AI innovations are powered by massive datasets — often scraped from the internet or collected from users.

Relevance : GS 3(Technology)

Data Practices Under Scrutiny

• Tech giants have been repeatedly accused of violating user privacy:
  • Google’s Incognito Mode case resulted in a $7.8 billion-valued settlement.
  • Google also paid $1.4 billion for illegal location and biometric tracking.
  • Meta faced similar charges over misuse of biometric data.
• OpenAI faces lawsuits from authors, publishers, and media houses (e.g., NYT, Ziff Davis) over copyright violations in training its LLMs.

The Problem with Settlements

• Out-of-court settlements allow companies to avoid admitting guilt or setting legal precedent.
• This emboldens Big Tech, as they sidestep meaningful regulatory consequences while continuing business as usual.

Unchecked Innovation vs. Sluggish Regulation

• Despite mounting lawsuits, AI deployment continues largely unhindered.
• Regulatory systems are struggling to catch up or lack clarity on foundational AI issues.
• Conventional legal constraints appear ineffective in curbing the rapid AI expansion.

Global Regulatory Landscape

• European Union:
  • GDPR enforces strong data rights and steep penalties.
  • Meta was fined under the Digital Markets Act.
  • The AI Act, targeting AI governance, will be implemented by August 2025.
  • EU also acting against Chinese firms (e.g., TikTok, SHEIN) over unlawful data transfers.
• India:
  • Enacted the Digital Personal Data Protection Act, 2023.
  • Aims to balance data protection and innovation, seeking global AI leadership while building regulatory capacity.
• China:
  • Enforces strict data localization and privacy laws.
  • Simultaneously promotes AI development by local tech giants, backed by the state.

Key Concerns

• Foundational tension: AI models need vast data, while legal and ethical systems demand limits.
• Risk of user privacy and public interest being treated as afterthoughts, rather than guiding principles.
• Courts and regulators are reactive, not proactive — playing catch-up.

Core Insight

AI development is outpacing regulation across jurisdictions.
While Big Tech pushes the frontiers of AI, legal guardrails remain underdeveloped or weakly enforced.
This gap risks undermining user rights, IP protections, and societal safeguards.

Conclusion

• The AI innovation cycle led by Big Tech is moving too fast for the regulatory apparatus.
• Without strong, enforceable, and anticipatory regulation, AI’s ascent may compromise fundamental rights and public trust.
• There is an urgent need for globally coordinated, future-ready AI governance frameworks.

Dassault Aviation ties up with Tata for Rafale fighter fuselage production in India

Overview of the Agreement

• Dassault Aviation and Tata Advanced Systems Ltd. (TASL) have signed four Production Transfer Agreements.
• The partnership aims to manufacture Rafale fighter aircraft fuselage sections in Hyderabad, India.
• This is meant not only for Indian requirements but also for global markets.

Relevance : GS 3(Internal Security ,Economy , Defence)

Significance of the Move

• Marks the first time Rafale fuselages will be produced outside France.
• Positions India as a critical node in the global aerospace supply chain.
• Signals deepening industrial trust between France and India, especially in the defense and strategic sector.

Production and Capacity

• Tata’s Hyderabad facility will manufacture:
  • Lateral rear fuselage shells
  • Complete rear section
  • Central fuselage
  • Front section
• First fuselages expected by 2028.
• Facility capacity: Up to two complete fuselages per month.

Implications for Indian Aerospace Industry

• Boosts domestic defense manufacturing, aligned with ‘Make in India’ and Atmanirbhar Bharat goals.
• Enhances TASL’s role as a key aerospace and defense manufacturing partner.
• Likely to generate high-skilled jobs and promote technology transfer in precision aerospace engineering.

Strategic and Geopolitical Relevance

• Strengthens the India-France strategic defense partnership.
• Enhances India’s self-reliance in fighter jet components and reduces dependence on foreign imports.
• Could serve as a template for future high-end defense collaborations with other nations.

Statements from Leadership

• Dassault CEO Eric Trappier: This is a decisive step to build an Indian supply chain that aligns with global quality and competitiveness standards.
• TASL CEO Sukaran Singh: Partnership demonstrates trust in Tata’s capabilities and marks a milestone in India’s aerospace journey.

Conclusion

• The Dassault-Tata agreement is a landmark development in India’s defense manufacturing ecosystem.
• It not only furthers the vision of indigenisation but also enhances India’s role in the global defense supply chain.
• Success of this project could pave the way for future indigenous aircraft production and full-spectrum aerospace capability development.

Digital Census to speed up enumeration, aid policies with timely and accurate data: Centre

Overview of the Digital Census 2027

• The 2027 Census will be India’s first major digital Census, enabling real-time data collection using smartphone-based mobile applications.
• Aim: Faster publication and greater accuracy in data to help improve policy formulation and scheme implementation.

Relevance : GS 2(Digital Governance, Social Justice)

Key Digital Tools

• Two mobile apps:
  • Census 2021-Household
  • PE-Census 2021 (Population Enumeration)
• A web-based portal:
  • Census Management and Monitoring System (CMMS)
    ➤ To manage appointments, monitor field progress, and auto-generate records.

Features & Capabilities

• Real-time monitoring of each enumerator’s fieldwork via CMMS.
• Digital entry reduces manual data digitisation delays seen in earlier censuses.
• Provisions remain for paper schedules in case of connectivity issues in remote areas.

Scale and Logistics

• Estimated to cover 33 crore households and 136 crore individuals.
• About 30 lakh enumerators will be deployed across 24 lakh enumeration blocks, each block covering ~800 people.

Comprehensive Caste Data Collection

• For the first time in Independent India, the Census will include comprehensive caste data.
• Existing mobile applications will be updated to accommodate caste-related questions.

Challenges Highlighted

• App-related user issues already reported:
  • Login difficulties
  • Data deletion due to lack of edit options
• Ensuring digital literacy and technical training for lakhs of enumerators will be critical.

Importance and Policy Implications

• Reduces time lag — earlier Census outputs took up to a decade to be fully released.
• Enables data-driven governance, improving targeting and effectiveness of welfare schemes.
• Supports evidence-based decisions in health, education, urban planning, and employment.

Broader Significance

• Reflects India’s push towards digital governance and public data systems.
• Sets the stage for integrating digital tools in large-scale public data projects.
• Ensures accountability, transparency, and efficiency in Census operations.