India’s outward remittances under the Liberalised Remittance Scheme (LRS) fell to USD 29.56 billion in FY2025 from USD 31.74 billion in FY2024.
The decline is attributed to global uncertainties, sluggish domestic income growth, high base effect, and notably a 16% drop in student remittances.
Student remittances decreased primarily due to stricter student visa regulations in countries like the US, UK, and Canada, leading to a significant fall in study permits issued to Indian students.
Travel remittances saw a marginal decline but remain the largest component of LRS outflows, accounting for over 57%, indicating continued interest in international travel despite a slower pace.
Investment in equity and debt abroad by resident Indians under LRS increased by 12.51% in FY2025.
LRS allows resident individuals to remit up to USD 250,000 per financial year for approved transactions, including education, travel, and investment.
The Union Budget in February 2025 increased the threshold for Tax Collected at Source (TCS) on LRS transactions from Rs 7 lakh to Rs 10 lakh, aimed at boosting outbound tourism and education.
Certain transactions like purchasing lottery tickets or remittances to FATF non-compliant countries are prohibited under LRS.
Pharma Tech
The pharmaceutical industry is rapidly evolving driven by biologics, AI, and automation, necessitating that India fosters specialized skills and addresses challenges like regulatory compliance and innovation to stay competitive globally.
Artificial Intelligence (AI) and Machine Learning (ML) speed up drug discovery, predict molecular behavior, and personalize treatments; India is deploying AI for diseases like tuberculosis and diabetes.
Internet of Medical Things (IoMT) monitors health parameters in real-time, enabling personalized treatment and supporting decentralized clinical trials.
Blockchain technology ensures privacy, transparency, and traceability in the pharmaceutical supply chain, helping detect counterfeit medicines.
Biologics are complex medicines from living organisms, while biosimilars are cost-effective equivalent versions; technologies like organ bioprinting are also emerging.
Digital Twin technology uses virtual simulations to improve drug manufacturing efficiency and optimize operations.
India is the world’s 3rd largest producer of pharmaceuticals by volume, supplying over 50% of global vaccine demand and a significant portion of generics to the US market, with its market projected to grow significantly by 2030.
Key concerns include data privacy and cybersecurity risks, escalating costs that create barriers for SMEs, complex regulatory frameworks, skill deficits in new technologies, and ethical considerations.
Ensuring responsible technological intervention requires adaptive regulatory ecosystems, strengthening data security and ethics (aligned with laws like the Digital Data Protection Act, 2023), investing in human capital and digital skills, and promoting collaboration.
Bridging the skill gap in emerging technologies is crucial for sustaining India’s leadership in the pharmaceutical sector and enhancing its global competitiveness.
RBI Annual 24-25
Why in News: The Reserve Bank of India (RBI) released its comprehensive Annual Report for 2024-25, detailing economic, monetary, and financial developments and outlook.
Indian Economy: Remained the fastest-growing major economy globally at 6.5% GDP growth in 2024-25, driven by strong services (7.5%) and improved agriculture (4.6%), despite global slowdown.
RBI Balance Sheet & Surplus: Grew 8.2%, with income up 22.77% (boosted by forex gains, higher investment returns) and expenditure up 7.76%. This led to a record surplus transfer of Rs 2.68 lakh crore to the government (up 27.37%). Assets saw significant increases in gold (52.09%) and domestic investments (14.32%).
Inflation: Headline inflation moderated to 4.6% in 2024-25 (from 5.4% in 2023-24), with core inflation at 3.5% and food inflation falling to 2.9% by March 2025.
Monetary Policy: Repo rate held at 6.50% through much of the year; stance shifted from “withdrawal of accommodation” to “neutral” in Oct 2024; CRR reduced to 4% in Dec 2024 to ease liquidity.
Financial Stability: Bank credit growth healthy, NPAs declined. Increased household savings (5.1% of GNDI).
Digital Leap: Digital payment volume surged 34.8%, UPI accounted for 48.5% of global real-time payments. Financial Inclusion Index rose to 64.2, showing deeper service usage.
Challenges: Surge in bank fraud amounts (nearly tripled to Rs 36,014 cr), rise in counterfeit Rs 200/500 notes, managing volatile food prices, global uncertainties, and balancing fiscal consolidation with capex needs.
Outlook & Measures: GDP growth projected at 6.5% for 2025-26, inflation at 4.0%. Key measures needed include strengthening agri-logistics, intensifying fraud tech, scaling CBDC, diversifying external trade, prioritizing quality capex, and integrating climate risk/green finance.
Mosura Fentoni
Mosura Fentoni is a newly discovered Cambrian radiodont fossil from Canada’s Burgess Shale. Why: It provides new insights into ancient marine life and the evolution of arthropods.
It exhibits advanced swimming (paddle flaps) and respiratory (gills in posterotrunk) adaptations. Why: These sophisticated features were unexpected for a small creature from this early period, challenging prior assumptions about the capabilities of arthropod relatives.
Its posterotrunk functioned as a specialized respiratory tagma with concentrated gills, similar to the tails of horseshoe crabs. Why: This demonstrates early functional specialization of body segments, a key characteristic that later enabled the vast diversity of modern arthropods.
Its anatomy suggests that early segment specialization was already occurring in radiodonts. Why: This crucial ability, foundational to the diversity seen in modern insects, crustaceans, and spiders, appears to have roots in these ancient forms.
It challenges existing views on arthropod evolution. Why: By revealing unexpected complexity and specialization in an early relative, it requires a re-evaluation of the evolutionary timeline and the origins of traits characteristic of modern arthropods.
Nomadic Elephant 17
The 17th edition of the India-Mongolia Joint Military Exercise Nomadic Elephant is taking place in Ulaanbaatar, Mongolia.
It is an annual bilateral exercise held alternately in India and Mongolia, continuing a tradition since 2006.
The last edition was held in Umroi, Meghalaya in July 2024.
The exercise is scheduled from 31st May to 13th June 2025.
The Indian Army contingent, mainly from the ARUNACHAL SCOUTS, comprises 45 personnel. The Mongolian Armed Forces contingent, also of similar strength, is represented by their 150 Special Forces unit.
Its primary aim is to enhance interoperability between the two forces for semi-conventional operations in semi-urban/mountainous terrain under the United Nations Mandate (Chapter VII). This is why it focuses on joint task force employment.
Training activities include endurance training, reflex shooting, room intervention, small team tactics, rock craft training, and, uniquely this year, aspects of Cyber Warfare to enhance complexity.
The exercise reinforces regional security, peace, and stability, highlighting the shared commitment and fostering strong military ties, trust, and cultural understanding between India and Mongolia.
Birch Glacier
A catastrophic collapse of Switzerland’s Birch Glacier triggered a massive landslide, burying an Alpine village under ice, rock, and mud. This is key because it highlights the immediate destructive impact of the glacier failure.
The glacier’s instability and collapse were caused by a cascading disaster combining heavy debris load, permafrost thawing, and rising temperatures. This explains the reasons behind the event.
The collapse impacted the River Lonza, increasing the risks of flooding downstream due to the debris. This details a significant consequence beyond the immediate landslide area.
Birch Glacier is located in the Swiss Alps’ Lotschental Valley near the Bietschhorn mountain, providing geographical context for the event.
Swiss glaciers, in general, have lost nearly 40% of their volume since 2000, with a 10% loss in 2022–2023 alone due to record temperatures. This broader context shows the event is part of a wider trend of glacier retreat linked to climate change.
The Swiss Alps are a prominent mountain range forming a natural barrier in Europe. This places the glacier event within a significant European geographical region.
Padma Honours
Why in News: The President of India presented the Padma Vibhushan, Padma Bhushan, and Padma Shri Awards for 2025 at Rashtrapati Bhavan on May 27, 2025. These awards, honouring 139 distinguished persons, were announced on the eve of Republic Day 2025.
Padma Awards are among India’s highest civilian honours, instituted in 1954 and announced annually on Republic Day (January 26th).
They honour excellence across diverse fields of public service like art, social work, medicine, sports, civil service, and more.
Awards are given in three categories: Padma Vibhushan (exceptional service), Padma Bhushan (distinguished service of high order), and Padma Shri (distinguished service), ranking highest to lowest respectively.
Conferred by the President of India, recipients receive a Sanad, medallion, and replica.
Eligibility extends to all persons regardless of race, occupation, position, or sex.
Since 2014, the awards have increasingly recognized “unsung heroes,” transforming into the “People’s Padma”; 30 such individuals were honoured this year (2025).
Nominations are reviewed by the Padma Awards Committee for final approval by the Prime Minister and President.
Generally not awarded posthumously, they are not titles and cannot be used as prefixes/suffixes. A maximum of 120 awards are given annually (excluding certain exceptions).
Sikkim@50
Why in News: Sikkim celebrated the 50th anniversary of its integration with India (on 16th May 1975, becoming the 22nd state), with Prime Minister Narendra Modi participating in the Golden Jubilee celebrations on 29th May 2025 and highlighting the state’s journey and future.
Key Points:
Sikkim was a hereditary monarchy ruled by the Chogyal dynasty until 1975.
It maintained autonomy, becoming a British protectorate via treaties (Tumlong, Titaliya, Calcutta Convention) and later an Indian protectorate through the Indo-Sikkim Treaty of 1950, controlling defence, external affairs, and communication.
In 1975, a referendum resulted in 97% of voters supporting integration with India.
The 35th Amendment Act, 1974 made Sikkim an ‘Associate State’, and the 36th Amendment Act, 1975 made it a full-fledged state of India.
PM Modi praised Sikkim’s democratic decision to integrate and envisioned it as a “golden” state, a global hub for tourism, and a powerhouse in sports.
He highlighted Sikkim’s success as a “model of development with nature”, noting its high per-capita income, status as the world’s first fully organic state (2016), biodiversity, and conservation efforts.
New initiatives mentioned include developing Soreng district as India’s first organic fishery cluster and inaugurating the Pelling Ropeway to boost tourism.
Improved connectivity and investment commitments were noted as drivers for development and employment.
A commemorative ₹50 postage stamp was released as part of the celebrations.
Sikkim is located in the Eastern Himalayas, bordering China, Bhutan, West Bengal, and Nepal, and is home to Mount Kanchenjunga, the Teesta river, and diverse biodiversity.
Primate Crisis
A report titled “Primates in Peril: The World’s 25 Most Endangered Primates 2023–2025” highlights increasing risks faced by 25 primate species globally.
The list includes 6 species from Africa, 4 from Madagascar, 9 from Asia, and 6 from South America (Neotropics).
The Cross River Gorilla (Cameroon/Nigeria) and Tapanuli Orangutan (Sumatra, Indonesia) are specifically highlighted as Critically Endangered and among the most endangered. The Tapanuli Orangutan has fewer than 800 individuals.
Two primates found in Northeast India and Bangladesh, Phayre’s Langur and the Western Hoolock Gibbon, were considered for the final list but excluded.
Phayre’s Langur is found in eastern Bangladesh and northeastern India, listed as Endangered (IUCN) and Schedule I (India). It faces threats from hunting, habitat loss and fragmentation, illegal trade, electrocution, and roadkill.
The Western Hoolock Gibbon, India’s only ape, is found in NE India, Bangladesh, and Myanmar. It is also listed as Endangered (IUCN) and Schedule I (India). Key threats include continuous habitat loss and fragmentation, hunting, and capture for illegal trade.
For these Indian species, the report emphasizes the need for conservation action, including habitat protection and restoration, creating corridors, research, community engagement, and government intervention.
