Current Affairs 16 August 2025

Content

1. PM calls for self-reliance, flags ‘demographic plot’
2. Major GST shake-up: 12% and 28% slabs to be axed
3. India to build indigenous air defence system by 2035: PM
4. Why Maharashtra’s small, marginal farmers are rejoicing over U.K. FTA
5. Rain and Flash Floods in J&K
6. Civil and criminal cases: what they are, how they differ

PM calls for self-reliance, flags ‘demographic plot’

Self-Reliance (Aatmanirbharta)

• Traditional Meaning:
  • Economic: Reducing dependence on imports, strengthening domestic manufacturing.
  • Strategic: Defence indigenisation, food security, energy security.
  • Civilisational: Linked to aatma samman (self-respect, dignity).
• Expanded Vision (PM’s framing):
  • Not just import–export balance or currency reserves.
  • About building intrinsic national strengths and capabilities (innovation, technology, resilience).

Relevance : GS 2(Governance ) , GS 3(Growth and Development)

Contextual Background

• Global Trade Tensions:
  • US tariffs (50% on Indian goods under Trump) → India vulnerable to protectionism.
  • China’s economic assertiveness → global “supply chain weaponisation”.
• Domestic Challenges:
  • High unemployment.
  • Dependence on fertilizer, electronics, semiconductors.
  • MSMEs constrained by compliance costs.
• Security Dimension:
  • Insurgencies (Naxalism).
  • Border demographic shifts (illegal migration, cross-border influences).
  • Rising cyber and AI-linked vulnerabilities.

Key Announcements in the Speech

Economic Reforms

• Second-Generation GST Reforms:
  • Simplify tax compliance, reduce rates on essentials, address inverted duty structures.
  • Expected → relief in household budgets + improved MSME viability.
• Next-Generation Economic Reforms Task Force:
  • Broader structural reforms (labour, capital markets, digital economy).

Employment

• Pradhan Mantri Viksit Bharat Rozgar Yojana (₹1 lakh crore corpus):
  • ₹15,000 one-time grant for first-time employees.
  • Incentives to private firms for new job creation.
  • Goal: boost formal sector hiring.

Technology & Innovation

• Semiconductor Mission:
  • 6 units operational, 4 sanctioned.
  • “Made-in-India” chips by 2025 → reduce import dependency, critical for electronics, defence, EVs.
• Innovation Push:
  • AI, cybersecurity, deep-tech, operating systems → global competitiveness.

Security & Demography

• Defence Self-Reliance:
  • Indigenous weapons during Operation Sindoor.
  • Green corridors replacing Naxal corridors in Chhattisgarh.
• Demographic Mission:
  • To address “conspiracies” altering demographic character, esp. border areas.
  • Linked to illegal migration, demographic imbalances → security concern.

Farmers & Agriculture

• Protection against external tariff pressures (esp. US demands).
• Reduce fertilizer dependency on imports.

Analytical Dimensions

(A) Economic Significance

• Positive:
  • GST 2.0 can correct flaws of first phase.
  • Semiconductor production → reduce $16–20 bn annual import bill.
  • Employment corpus → demand-side stimulus.
• Challenges:
  • Semiconductor industry needs ecosystem (skilled manpower, water, power).
  • Fiscal burden of new schemes.
  • Job incentives risk being short-term unless tied to skill-building.

(B) Strategic Significance

• Defence indigenisation: Moves India closer to Strategic Autonomy.
• Technology race: Without AI/OS development, India risks digital dependence on US/China.
• Demographic focus: National security lens applied to migration and border dynamics.

(C) Political-Economic Messaging

• Links aatmanirbharta = aatma samman → emotional + cultural appeal.
• Longest ever speech → signals importance of message to domestic + global audience.
• Timing: Amid global trade wars + tech disruption → frames India as resilient power.

Critical Evaluation

• Strengths:
  • Holistic framing (economy, defence, technology, demography).
  • Forward-looking → AI, semiconductors, deep-tech.
  • Recognises MSMEs as job engines.
• Concerns:
  • Repetition risk: Aatmanirbhar Bharat has been announced multiple times since 2020; execution gap persists.
  • Employment incentives may not solve structural unemployment (automation, skills mismatch).
  • Fertilizer import substitution requires R&D + investment in green ammonia, not just declarations.

Broad Implications

• Economic Governance: Push for next-gen reforms → signal to markets + investors.
• Geopolitics: Subtle message to US/China → India won’t be squeezed by tariffs or supply chain coercion.
• Domestic Politics: Reinforces nationalist themes (self-respect, demographic security).
• Long-term Nation-Building: Semiconductor + AI + defence self-reliance can reshape India’s global standing.

Major GST shake-up: 12% and 28% slabs to be axed

Understanding GST and its Current Structure

• What is GST?
  • Goods and Services Tax (GST) is a unified indirect tax system introduced in India in July 2017.
  • It subsumed multiple indirect taxes (excise, service tax, VAT).
  • GST is a destination-based tax collected where goods/services are consumed.
• Current GST Slabs (before proposed reform):
  • 0% (Nil rate) – essential items.
  • 5% – mass consumption items.
  • 12% – processed foods, some industrial goods.
  • 18% – most goods and services (major revenue generator).
  • 28% – luxury items, white goods, sin items.
  • Special rates: 0.25% (precious stones), 3% (gold, silver).
  • Cess: Additional levy on luxury/sin goods (cars, tobacco).

Relevance : GS 3(Taxation)

Proposed Reforms

• New Structure:
  • Retain 5% and 18% slabs.
  • Eliminate 12% and 28% slabs.
  • Introduce:
    • Concessional rate <1% – gold, silver, semi-precious stones.
    • High “sin rate” 40% – 5–7 items (tobacco, gutka, luxury items).
• Reallocation of items:
  • 99% of items in 12% slab → 5%.
  • 90% of items in 28% slab → 18%.
  • Remaining 10% of 28% slab → “sin rate” (40%).
• No additional cess → only GST rates apply.

Rationale for Reform

• Simplification: Reducing slabs → easier compliance, fewer disputes.
• Equity: Similar items to be taxed at same rate (e.g., all namkeen taxed equally).
• Consumption boost: Lower taxes on white goods, toiletries, processed food → increases demand.
• Curbing evasion: Lower rates discourage under-invoicing and tax avoidance.
• Correcting inverted duty structure: Prevents working capital lockups for firms.
• Ease of living: Pre-filled returns, faster refunds, tech-based registration.

Revenue Implications

• Current Revenue Distribution:
  • 28% slab → 11% of GST revenue.
  • 12% slab → 5%.
  • 5% slab → 7%.
  • 18% slab → 67% (backbone of GST).
• Post-reform expectation:
  • Revenue hit in short term.
  • Long-term gain from:
    • Higher consumption.
    • Wider tax net.
    • Reduced evasion.
• RBI’s estimate: Average GST rate currently ~11.6%; post-reform, will fall significantly → consumer-friendly, but requires trust in revenue buoyancy.

Stakeholder Dynamics

• Centre’s Role:
  • Can propose reforms but GST Council (states + Centre) has final say.
  • States may resist if revenue loss feared.
• States’ Concerns:
  • Dependence on GST compensation (ended in 2022).
  • Fear of shrinking tax base.
  • Political dynamics: Opposition-ruled states may demand higher compensation mechanisms.
• Industry Impact:
  • Positive: White goods, consumer durables, daily-use items cheaper.
  • Exporters/MSMEs: Relief from inverted duty structure.
  • Negative: Luxury/sin goods industries face higher taxation (40%).

Economic Implications

• Positive Effects:
  • Demand push in FMCG, white goods → higher production, job creation.
  • Reduced compliance burden → boosts MSME competitiveness.
  • Correcting inverted duty → frees capital for investment.
• Challenges:
  • Risk of revenue shortfall → fiscal deficit pressure.
  • States’ buy-in critical → political bargaining may delay.
  • Inflation risk in transition if items are reclassified improperly.

Global Context

• India’s GST vs Other Countries:
  • Most successful GST regimes have 2–3 rates (e.g., Singapore – single rate, Canada – 2 rates).
  • India initially had 5+ rates due to political compromises.
  • Proposed reform → brings India closer to global best practices.

Critical Analysis

• Strengths:
  • Consumer-friendly, pro-middle-class.
  • Simplifies compliance architecture.
  • Signals trust in consumption-led growth.
• Concerns:
  • Reliance on buoyancy assumption risky (consumption may not rise enough to offset revenue loss).
  • GST Council consensus often difficult (Centre vs States tussle).
  • Exemptions list still large (health, education, petroleum products outside GST).
  • 40% slab may encourage smuggling/black market in tobacco/gutka.

India to build indigenous air defence system by 2035: PM

Basics: Understanding Air Defence Systems

• What is Air Defence?
  • A military system to detect, track, intercept, and destroy enemy aerial threats (aircraft, drones, missiles).
  • Includes:
    • Radar & Surveillance systems → early warning.
    • Surface-to-Air Missiles (SAMs) → neutralising threats.
    • Command & Control networks → decision-making.
• Why critical for India?
  • Two-front challenge (China & Pakistan).
  • Rising drone warfare (e.g., Pakistan-based terror networks).
  • Protection of civilian and strategic infrastructure (airports, power plants, hospitals).
  • Independence from foreign suppliers (S-400, Israeli systems).

Relevance : GS 3(Internal Security, Defence)

The Sudarshan Chakra Mission

• Objective: By 2035, India will develop a fully indigenous multi-layered air defence shield.
• Coverage: Both strategic (military bases, nuclear facilities) and civilian assets (hospitals, railways, religious places).
• Features (envisioned):
  • Intercept any aerial threat (drones, UAVs, cruise missiles, fighter jets, hypersonic weapons).
  • Multi-platform technology (radar networks, AI-driven sensors, directed energy weapons, missile interceptors).
  • Expandable shield → nationwide coverage.
• Symbolism: Named Sudarshan Chakra, invoking Lord Krishna’s mythological divine weapon of protection and retribution.

 Current Capabilities and Gaps

• Present Systems:
  • Russian S-400 (3 units inducted, 2 more pending). Effective, but dependence on Russia.
  • Indigenous Projects: Akash (SAM), MR-SAM (with Israel), QRSAM, Astra (air-to-air missile).
  • IACCS (Integrated Air Command & Control System): Successfully coordinated during Operation Sindoor vs Pakistan.
• Gaps:
  • Reliance on foreign suppliers (Russia, Israel, US).
  • No indigenous long-range interceptor (like THAAD).
  • Emerging threats: Hypersonic glide vehicles, swarm drones.

Strategic Significance

• Self-reliance (Atmanirbhar Bharat): Reduces vulnerability to foreign sanctions/blackmail.
• Deterrence: Ability to neutralise Pakistan’s drones/missiles and counter China’s sophisticated arsenal.
• Symbol of Strategic Autonomy: Post-Operation Sindoor, reinforces India’s ability to act independently without fear of nuclear blackmail.
• Civilian Security: Extends beyond military → ordinary citizens, infrastructure, and “centres of faith”.

Link to Defence Industrial Base

• Indigenous Jet Engines: PM’s call to scientists/youth → develop engines for fighter aircraft (critical gap today, still reliant on imports).
• Parallel with Past Successes:
  • COVID-19 vaccine self-sufficiency.
  • UPI revolution in digital finance.
  • Tejas LCA, Chandrayaan-3, Gaganyaan.
• Defence PSU + Private Sector Role: HAL, BEL, DRDO, startups, and MSMEs.

Other National Security Announcements

• Operation Sindoor: Showcased India’s use of Made-in-India weapons to destroy Pakistan’s terror infrastructure.
• Indus Waters Treaty Stand: “Blood and water cannot flow together” → strong message against Pakistan, signalling possible renegotiation.
• Strategic Philosophy:
  • Self-reliance = strength and dignity.
  • No compromise on national interests.
  • National security ≠ foreign dependence.

Economic & Political Dimensions

• Economic:
  • Huge investment in R&D, defence industry → job creation, technology spin-offs.
  • Reduces forex outgo on arms imports (~$10 bn annually).
• Political:
  • 2035 target ties into Viksit Bharat @ 2047.
  • Appeals to nationalism, youth, innovators.
  • Enhances India’s stature in global defence market.

Challenges Ahead

• Technological: Hypersonic missile defence is cutting-edge; only US, Russia, China experimenting.
• Financial: Defence R&D costs are massive; sustained budgetary support required.
• Institutional: Coordination among DRDO, armed forces, private sector often slow.
• Geopolitical: Foreign suppliers (Russia/US/Israel) may resist losing contracts.
• Implementation Risk: Past delays (Arjun tank, Tejas) show indigenous projects take decades.

Why Maharashtra’s small, marginal farmers are rejoicing over U.K. FTA

Basics

• Nashik = “Grape Capital of India”
  • Over 3 lakh metric tonnes of grapes exported in 2023–24, worth $400+ million.
  • Maharashtra is the largest producer.
• U.K. as a key market
  • One of India’s top importers of grapes.
  • Grapes earlier faced 8% tariff in the U.K. → now reduced to zero under FTA.
• Farmers’ profile
  • Most are small/marginal farmers (<2 acres).
  • Increasing shift from traditional domestic varieties (Sonaka) → export-quality varieties (Thompson, Ara).
• Collective farming
  • Farmers’ Producer Companies (FPCs) like Sahyadri Farms enable scale, bargaining power, and compliance with international standards.
  • Sahyadri alone exports 22,000 MT annually, 30% to the U.K., with ₹1,900 crore turnover.

Relevance : GS 3(Indian Economy , Agriculture)

Economic Impact

• Higher incomes:
  • Tariff elimination makes Indian grapes more competitive against South Africa & Chile.
  • Farmers expect at least 15% better returns.
• Multiplier effect:
  • Improved standard of living, disposable income for rural households.
  • Encourages investment in land, technology, and allied businesses.
• Rural employment:
  • Increased demand for farm labour, logistics, packaging, and cold storage.

Competitiveness & Standards

• Stringent norms in EU/U.K.:
  • Uniform berry size, colour, taste, and residue-free produce required.
  • Regular soil & petiole testing is now standard.
• Shift in farming practices:
  • Use of less chemicals, more sustainable techniques.
  • Push towards precision farming & global best practices.

Role of Collective Farming

• Necessity for small farmers:
  • With average landholding <1 ha, individual farmers cannot compete globally.
  • FPCs ensure aggregation, quality control, certification, and export linkages.
• Sahyadri Model:
  • Over 14,000 farmers.
  • 30+ new grape varieties, 19 patented.
  • Enables end-to-end ecosystem → from cultivation to global retail shelves.

Broader Implications

• Diversification:
  • Beyond grapes: pomegranate, mango, citrus fruits may also benefit under FTA.
• Food safety push:
  • Higher standards improve domestic market quality too.
• Global expansion:
  • Lessons from U.K. compliance can help entry into Japan, U.S., and premium markets.

Challenges

• Weather risks:
  • Unseasonal rains threaten yield & quality.
• Cost of compliance:
  • Testing, certifications, and maintaining export standards are expensive.
• ‘Do or die’ competitiveness:
  • Farmers must continuously upgrade; otherwise, risk being outcompeted.
• Equity concern:
  • Benefits may concentrate in organised collectives like Sahyadri → marginal farmers outside FPCs risk exclusion.

Conclusion

• The India–U.K. FTA is a game-changer for Indian grape farmers, especially in Nashik.
• It transforms the sector from fragmented, low-margin domestic sales to globally competitive, high-value exports.
• The success hinges on collective farming models, adherence to strict quality norms, and weather resilience.
• If replicated for other horticultural crops, the FTA could catalyze a structural shift in Indian agriculture, moving smallholders towards global value chains.

Rain and Flash Floods in J&K

Basics

• Scale of Impact (2010–2022)
  • 2,863 extreme weather events in J&K.
  • 552 deaths reported.
  • 1,942 instances of thunderstorms, heavy rain (≥65–115 mm in 24 hrs).
  • 186 flash floods, 110 cloudbursts, 111 landslides.
• Recent Example
  • August 2024: Flash flood at Kishtwar district (Chasoti village), >50 missing.
• Geographic Vulnerability
  • J&K: Mountainous terrain + fragile ecosystem.
  • Heavy dependence on glaciers, rivers, slopes.
• Drivers
  • Rising global temperatures.
  • Changing western disturbances.
  • Himalayan topography.

Relevance : GS 1(Geography) ,GS 3(Disaster Managements)

Climate Change & Rising Temperatures

• Warmer atmosphere = more water vapour
  • Each 1°C rise → atmosphere holds 7% more moisture.
  • Leads to more intense precipitation, sudden downpours, flash floods.
• Glacial melt
  • Rising temps shrinking Himalayan glaciers.
  • Formation of unstable glacial lakes → prone to sudden outburst floods (GLOFs).

Changing Nature of Western Disturbances (WDs)

• Traditionally winter (Dec–March), now extending to summer.
• Global warming shifting intensity and frequency.
• Moisture-laden WDs from Mediterranean, Black Sea, Caspian, Arabian Sea → now stronger.
• Heavier rainfall + flash floods in J&K Himalayas.

Topographical Factors

• Steep, fragile slopes in Himalayas intensify vulnerability.
• Narrow valleys funnel rainwater → higher flood intensity.
• Deforestation, unregulated construction, and loose soil increase landslides.

Nature of Events (2010–2022 data)

• Cloudbursts: Sudden heavy rainfall (>100 mm/hour), 110 incidents.
• Flash floods: 186 incidents, high fatalities.
• Landslides: 111 incidents.
• Heavy snow: Only 42 events, but high risk when followed by rain.

Human Impact

• 552 deaths in 12 years due to extreme weather.
• Loss of homes, farmland, infrastructure.
• Migration pressures, economic instability for locals.

Expert Views

• “Do or die” situation: Need climate-adaptive planning.
• Rising Arabian Sea temperatures intensify western disturbances.
• Local vulnerability amplified by poor planning, haphazard construction, lack of preparedness.

Conclusion

• Flash floods in J&K are no longer isolated events, but part of a larger climate change–driven pattern.
• Rising temperatures, glacial melt, and shifting western disturbances make the region acutely vulnerable.
• Mitigation requires:
  • Early warning systems.
  • Climate-resilient infrastructure.
  • Strict land-use regulation.
  • Regional cooperation on Himalayan glacial monitoring.

Civil and criminal cases: what they are, how they differ

Basics

• Civil Law
  • Deals with disputes between private individuals/organisations.
  • Goal: Compensation/rights enforcement, not punishment.
  • Filed by plaintiff against defendant.
  • Standard of proof: Preponderance of probabilities (more likely than not).
  • Examples: Contract breaches, family disputes, property cases, divorce.
• Criminal Law
  • Deals with offences against society/state.
  • Goal: Punish offender + deter crimes.
  • Prosecution initiated by state against accused.
  • Standard of proof: Beyond reasonable doubt.
  • Examples: Theft, murder, assault, fraud, cheating.
• Overlap
  • Some acts may give rise to both civil & criminal cases (e.g., breach of trust = civil wrong + cheating = criminal offence).

Relevance : GS 2(Polity , Constitution )

Purpose and Objectives

• Civil Law:
  • Seeks redressal, compensation, restoration of rights.
  • Focus on remedy, not punishment.
• Criminal Law:
  • Seeks deterrence and justice for society.
  • Protects social order, punishes misconduct.

Burden & Standard of Proof

• Civil: Lower threshold → Preponderance of probabilities.
• Criminal: Higher threshold → Beyond reasonable doubt.
• Reflects seriousness of criminal sanctions (imprisonment, execution, etc.).

Proceedings & Role

• Civil case: Plaintiff vs. Defendant.
• Criminal case: State vs. Accused (prosecution vs. defence).
• Civil disputes → settled through negotiation, mediation, or compensation.
• Criminal disputes → involve police investigation, trial, sentencing.

Length & Delays in Indian Context

• Civil suits:
  • Avg. 4.91 years for disposal.
  • Execution petitions to enforce decrees → ~3.97 years.
• Criminal cases:
  • Bail applications in Sessions Court → ~6.12 months.
  • Serious criminal offences → ~4.65 years.
  • Magisterial criminal cases (punishment <3 years) → ~2.45 years.
• Problem: Civil matters often dragged deliberately, as parties prefer litigation over out-of-court settlement.
• Criminal matters: Faster on paper, but still face adjournments and backlog.

Judicial Observations (as per article)

• Supreme Court criticised misuse of criminal proceedings for civil disputes (e.g., breach of trust in commercial transactions).
• Warned against harassment by converting civil disputes into criminal cases.

Larger Implications

• Misuse of Criminal Law:
  • Adds burden on judiciary, police, and prisons.
  • Harasses individuals in essentially private disputes.
• Civil Justice System:
  • Slow and cumbersome → discourages people from using civil remedies.
  • Pushes parties toward criminal litigation to exert pressure.
• Need for Reform:
  • Speedy dispute resolution mechanisms (e.g., mediation, Lok Adalats).
  • Strict judicial scrutiny before admitting criminal complaints in civil disputes.
  • Balance between individual rights and state’s role in justice.

Conclusion

• Civil law ensures private justice, criminal law ensures public order.
• In India, blurred lines and judicial delays complicate their functioning.
• True justice requires speed, clarity in classification, and prevention of misuse of criminal law in purely civil disputes.