India’s trade deficit narrowed significantly in May 2025 to $6.62 billion, down from $9.35 billion in the same month last year.
This narrowing was driven primarily by robust growth in services exports (up 9.4%), contributing a substantial $14.65 billion surplus in the services sector.
Total imports also saw a slight decrease (down 1.02%), further helping to close the trade gap.
Despite a small decline in merchandise exports, strong performance in key sectors like electronics, pharmaceuticals, and textiles, supported by policy initiatives like the PLI scheme, helped overall export figures.
The narrower deficit is viewed as a positive sign of India’s external sector resilience amid global economic challenges and volatility.
Governor’s Role
Legislative Assent (Art. 200): Governor’s approval is mandatory for state bills to become law (as seen with Kerala’s private university plan). Why: It’s a constitutional check on state legislature, though indefinite delay is unconstitutional per SC rulings.
Appointment of Chief Minister/Ministers (Art. 164): Governor appoints the head of the state government and cabinet. Why: Forms the executive, crucial for governance, especially discretionary in case of hung assembly.
Head of State Executive (Art. 154): Nominal head; all executive actions are taken in their name. Why: Represents the state’s executive authority constitutionally.
Discretionary Powers (Art. 163): Can act independently in certain situations, like reserving bills for the President or recommending President’s Rule. Why: Allows for judgment in specific circumstances, though case laws limit this power (Shamsher Singh, Nabam Rebia).
Summoning/Proroguing Legislature (Art. 174): Controls legislative sessions. Why: Manages the functioning of the state assembly, though largely on CM’s advice.
Link between Union and State: Appointed by the President, acts as a bridge. Why: Facilitates communication and ensures constitutional governance alignment.
Role is Justiciable: Governor’s actions are subject to judicial review (Rameshwar Prasad case). Why: Prevents arbitrary use of power; ensures accountability.
Bound by Aid and Advice: Must generally act on the advice of the Council of Ministers (Art. 163, Shamsher Singh). Why: Reinforces parliamentary democracy where elected government holds real power.
Cannot Withhold Assent Indefinitely: Recent SC ruling reinforces this, addressing delays seen in states like Kerala. Why: Prevents Governors from stalling state governance unnecessarily and respects federalism.
India Census 2027
Census 2027 Announced: The Ministry of Home Affairs has notified the next Population Census for 2027, taking place in two phases (Oct 2026 & Mar 2027).
Why: Census is a decennial exercise mandated by the Census Act, 1948, conducted by RGI, providing comprehensive data on demography, socio-economic factors, etc.
First Nationwide Caste Enumeration Since 1931: The upcoming census will include caste enumeration across the country.
Why: Captures crucial socio-cultural data, informing policies and understanding population characteristics.
First Digital Census: Utilising mobile apps, online self-enumeration, real-time tracking, GPS tagging, and a new digital coding system.
Why: Aims to reduce errors, speed up data processing, ensure uniform entries, enable quality control, and improve coverage accuracy compared to previous manual methods.
Significance for Governance & Society: Census data is foundational.
Why: It’s essential for delimitation of electoral constituencies (Article 82), reservation of seats for SC/STs (Articles 330 & 332), implementation of the Women’s Reservation Bill, allocation of government grants and resources, and evidence-based policymaking for planning and social justice.
NISHAD Rinderpest Facility
ICAR-NIHSAD, Bhopal, has been designated a Category A Rinderpest Holding Facility (RHF) by the World Organisation for Animal Health (WOAH) and the Food and Agriculture Organization (FAO). Why: This is a significant global recognition for securely storing materials of the eradicated, highly contagious cattle plague virus.
India is now one of only six countries globally entrusted with securely holding Rinderpest Virus-Containing Material (RVCM). Why: It reinforces India’s pivotal role in global animal health, biosecurity, and leadership in preserving the rinderpest eradication legacy.
Rinderpest was a deadly disease eradicated in 2011, but virus samples still exist in a few high-security labs. Why: Strict regulation by FAO/WOAH is essential to prevent accidental or intentional release and potential re-emergence of the disease.
NIHSAD, a premier BSL-3 high-containment lab and national repository for RVCM since 2012, received the designation after a comprehensive international evaluation. Why: Its robust biosafety protocols, effective inventory management, and readiness for emergency situations met the stringent standards required for Category A status.
The designation highlights India’s commitment to international standards of disease control and prevention. Why: As stated by Secretary Alka Upadhyaya, it is a testament to India’s responsibility and readiness in safeguarding global animal health.
Shipki Pass
Shipki La Pass (3,930m) in Himachal Pradesh, along the India-China border, has been opened to domestic tourists. Why? To boost borderland economies, enhance strategic connectivity, promote cultural tourism, revitalize tourism and trade, and create local opportunities.
It is a motorable pass where the Sutlej River enters India, historically serving as a vital Indo-Tibetan trade route since ancient times (5th/15th century onwards). Why? It marks a significant geographical and historical connection point.
The historic trade route through Shipki La was closed after the 1962 Sino-India War, further impacted by events like Doklam and COVID-19, and remains shut for commercial exchange. Why? This explains the disruption of its historical function and the context for the tourism opening.
Domestic tourists can now visit using just an Aadhaar card, removing the previously mandatory permit. Why? This simplifies access and has generated optimism locally.
Communities on both sides have deep cultural and economic connections, including shared lifestyles, surnames, and a predominantly Buddhist heritage. Why? This highlights a bond beyond trade and suggests potential for diplomacy through development and heritage.
Historically, diverse goods like wool, livestock, grains, spices, and tools were traded, influencing local culture and crafts. Why? Illustrates the depth and value of past exchange.
Although overall land pass trade volume with China is small, opening Shipki La offers potential benefits like shortening the journey to Mansarovar (religious tourism), boosting local employment and economy, and serving as a soft diplomatic gesture for trust-building. Why? Explains the local enthusiasm despite the commercial trade route remaining closed.
3rd UN Ocean Conf
Declaration Adopted: “Our Ocean, Our Future: United for Urgent Action” was adopted. Why: Reinforces global commitments to SDG 14 (Life Below Water) and aims to tackle the triple planetary crisis (climate change, biodiversity loss, pollution) threatening oceans.
Strong Push for Binding Plastics Treaty: Indigenous leaders called for a legally binding treaty with justice at its core; supported by over 95 countries. Why: To regulate plastics from production to disposal, address environmental racism impacting frontline communities disproportionately, and combat severe plastic pollution.
Strengthening Global Ocean Governance: Declaration urged full implementation of key agreements, including the BBNJ Agreement. Why: To improve conservation and sustainable use of oceans and marine resources, especially in areas beyond national jurisdiction.
Addressing Climate Change and Pollution: Called for enhanced global action to minimize climate impacts (like ocean acidification) and reduce marine pollution of all kinds. Why: To protect marine ecosystems from major threats and adapt to unavoidable climate effects.
Emphasis on Inclusive Action: Highlighted the need for ocean action guided by scientific research, traditional knowledge, and Indigenous Peoples’ expertise, along with financial justice for grassroots communities. Why: To ensure effective, equitable, and sustainable management and protection of the ocean.
PM Modi in Cyprus
PM Modi visited Cyprus, the first by an Indian PM in over two decades. Why: Signals strategy towards Turkey and strengthens outreach in the Eastern Mediterranean.
PM Modi was awarded the Grand Cross of the Order of Makarios III. Why: The country’s highest civilian honour, signifying strong bilateral ties.
Cyprus is a strategically located EU member in the Eastern Mediterranean near Turkey and Syria. Why: Acts as a crucial bridge for trade, connectivity, and influences regional geopolitics.
The visit counters the growing Turkey-Pakistan axis. Why: India’s ties with Turkey are strained due to Turkey’s Kashmir stance and alleged support for Pakistan, positioning Cyprus as a strategic partner against Turkish assertiveness.
Cyprus is situated along the route of the India-Middle East-Europe Economic Corridor (IMEC). Why: Important for smooth Indo-European trade and a key part of India’s connectivity initiatives.
Cyprus will hold the EU Council presidency in 2026. Why: Can facilitate India’s strategic and economic relations with the European Union across various sectors.
Cyprus is a significant economic partner and source of FDI for India, with an advanced financial sector. Why: Serves as a gateway for Indian businesses entering the European market.
Cyprus is key in Eastern Mediterranean natural gas exploration. Why: Important for India’s energy diversification interests amidst regional tensions.
Cyprus offers consistent political and diplomatic support to India. Why: Supports India’s UNSC bid, nuclear deals, and anti-terrorism stance, making it a dependable friend.
Croc Conservation @ 50
India commemorates 50 years (1975-2025) of its Crocodile Conservation Project (CCP) on World Crocodile Day (June 17), marking a major ecological success.
The CCP was launched in 1975 in Odisha, which became the epicentre and laid the foundation for scientific conservation efforts due to crocodile populations being on the brink of extinction.
Odisha is uniquely significant as it’s the only Indian state hosting wild populations of all three native species: Gharial, Mugger, and Saltwater crocodile.
Key project methods included “rear and release” programmes, establishing incubation and rearing centres (e.g., Tikarpada, Dangamal in Odisha), promoting captive breeding, creating protected habitats (like Bhitarkanika, Satkosia), and community awareness.
Odisha pioneered many initiatives, including setting up India’s first centres, conservation breeding pools, releasing captive-reared individuals, and declaring protected habitats for crocodiles.
The project led to significant population recovery: Gharials reached around 3,000 individuals (India holds nearly 80% of the global wild population), Saltwater crocodiles recovered to about 2,500 (with Bhitarkanika having the largest share), and Muggers are estimated at 8,000-10,000.
Crocodiles, the largest surviving reptiles, face threats like habitat destruction, poaching, dam construction, and sand mining, making conservation crucial.
Odisha continues to be a leader, hosting conservation centres for all three species and producing India’s first PhDs in crocodilian research. A new gharial project was recently announced, potentially building on Odisha’s success.
India is considering easing the Civil Liability for Nuclear Damage Act, 2010 (CLNDA).
Why: To reduce accident penalties on suppliers, addressing foreign firm concerns over unlimited liability.
Goal: Revive stalled nuclear projects and advance India’s clean energy targets (500 GW non-fossil fuel by 2030).
CLNDA 2010 ensures victim compensation, defines responsibility, aligns with international conventions (CSC 1997, Vienna 1963 principles).
It imposes strict, no-fault operator liability (capped at Rs 1,500 crore). Government liability is also capped (approx. Rs 2,100-2,300 crore).
Key Feature/Concern: Section 17(b) uniquely includes supplier liability for defective equipment/services, allowing operators recourse, unlike global norms which primarily hold operators liable.
Why Concerned: Suppliers (foreign/domestic) fear unlimited liability due to Section 17(b), unclear rules, and risk of civil suits under Section 46.
This unique liability framework deters foreign investment and slows nuclear power growth, hindering clean energy goals (e.g., delays in Jaitapur project).
Why Reforms Needed: To align with global norms, ease supplier fears, attract investment, and accelerate nuclear energy development while ensuring victim compensation and safety.
PM India Cyprus Historic
India’s Prime Minister’s visit to Cyprus is the first by an Indian PM in 23 years, marking a significant step to bolster bilateral relations.
Key focus areas include energy security, counterterrorism cooperation, and India-EU strategic alignment to strengthen ties.
Cyprus’s consistent support for India on issues like UNSC bid, NSG membership, Kashmir, and terrorism is crucial as a strategic counterbalance to growing Turkey-Pakistan military ties and reinforces India’s global positions.
Historic ties date back to 1962 diplomatic relations and shared history as NAM founders (Nehru & Makarios), providing a foundation for cooperation.
India supports a bi-zonal, bi-communal federation for the Cyprus issue, aligning with UN resolutions and international law.
The visit aims to add momentum, especially in trade and investment, as highlighted by the PM and his attendance at a business roundtable.
Cyprus also recently expressed solidarity with India after the terror attack in Pahalgam, showing continued support.
The visit occurred during regional geopolitical tensions (Israel-Iran conflict), impacting travel logistics and also sending a message to neighboring Turkey.
Census 2027
India’s 16th Census is scheduled with House-listing in 2026 (March-September) and Population Enumeration in early 2027.
It marks India’s first digital Census, using mobile apps, online self-enumeration, GPS tagging, and a new digital coding system for enhanced accuracy and faster data processing.
A major political and social development is the collection of caste data for all communities, which was last done comprehensively in 1931.
The Census is critical for governance, serving as the basis for policy-making, resource distribution, planning welfare schemes, delimitation of electoral constituencies (Articles 82, 330, 332), and allocation of Central grants to states.
New data points will be captured, including internet access, smartphone ownership, access to drinking water source inside the dwelling, and an option for transgender identity.
Involves training ~30 lakh enumerators and ~1.2 lakh supervisory staff, with significant focus on digital literacy and managing logistics across the country.
The Census is conducted under the legal framework of the Census Act, 1948, providing vital socio-economic and demographic data reflecting national changes.
Aims to finalize rules for UN-backed carbon markets (Article 6.4) and strengthen Nationally Determined Contributions (NDCs).
Includes discussions on the outcomes of the first Global Stocktake (from COP28), such as scaling up renewables and energy efficiency and transitioning away from fossil fuels.
Provides a platform to evaluate progress on climate adaptation and resilience and keep the 1.5°C Paris goal within reach.
Takes place amid challenges like geopolitical tensions but also signs of optimism from major economies regarding climate action, emphasizing that the 1.5°C target remains achievable.
Power Derivatives
SEBI approved electricity derivatives on MCX. Why? To enhance electricity price risk management and support integrating renewable energy.
These instruments allow Gencos, Discoms, and large consumers to trade on future output. Why? To hedge against power price fluctuations.
Futures, options, and swaps will be available. Why? To enable hedging, ensure supply certainty, and improve demand forecasting, which is key for energy storage systems.
The market will see boosted liquidity and participation from diverse players (hedgers, speculators, investors). Why? By separating financial settlement from physical delivery, deepening the short-term power market.
The move supports India’s clean energy goals (500 GW non-fossil fuel by 2030, net-zero by 2070). Why? Effective risk management is crucial for the significant investment needed for this transition.
Derivatives are contracts based on underlying assets like commodities (electricity output here). Why? This defines the financial instruments being launched.
Specific types mentioned are futures (obligatory future transaction), options (right, not obligation), and swaps (exchange of cash flows). Why? These are the mechanisms players will use for risk management.
