India’s net Foreign Direct Investment (FDI) declined sharply to USD 0.4 billion in 2024-25 from USD 10.1 billion in 2023-24, as per RBI data.
This decline is primarily due to increased repatriation and disinvestment by foreign firms (USD 51.5 billion) combined with a rise in Outward FDI (OFDI) by Indian companies.
Gross FDI inflows remained strong, increasing to USD 81 billion in 2024-25, concentrated in sectors like manufacturing, financial services, and energy, mainly from Singapore, Mauritius, and UAE.
Outward FDI by Indian companies surged by 75% to USD 29.2 billion in 2024-25, driven by global expansion, resource acquisition, cost efficiency, trade agreements, and service sector globalization.
FDI is a long-term, non-debt capital flow regulated by FDI Policy 2020 and FEMA, allowing investment via automatic or government approval routes.
FDI is crucial for India’s growth, contributing to capital formation, jobs, technology transfer, infrastructure, exports, and domestic competition.
Major barriers include a complex regulatory environment (taxation), infrastructure gaps, challenges in market competition, uneven distribution across regions/sectors, and environmental concerns.
Boosting FDI requires policy reforms (single-window, dispute resolution), addressing structural issues (incentives for underdeveloped areas), encouraging reinvestment, and improving infrastructure/skills, especially in non-metro areas.
800-Yr Shiva Unearthed
Discovery of an 800-year-old Shiva temple near Madurai. Why: This is the primary event and the core news.
Dates back to the reign of Pandya king Maravarman Sundarapandian I (early 13th century CE). Why: Provides historical context, linking the temple to a specific period and ruler known for temple patronage.
Reflects Pandya-style architecture. Why: Significant for understanding regional architectural traditions, known for intricate stone work.
Inscriptions may offer details on land grants, administration, and taxation. Why: Potential to provide valuable historical data on the Pandya dynasty’s socio-economic and political systems.
Unearthed by local villagers and archaeologists after centuries of neglect. Why: Highlights community involvement and expert contribution in historical preservation.
Could reshape understanding of medieval South Indian temple networks. Why: The find’s potential impact on historical research, revealing connections and scope of religious infrastructure.
Linked to the Pandya Dynasty, known for promoting Shaivism and temple patronage. Why: Places the temple within the broader historical and cultural context of a major ancient Tamil kingdom.
MPC cuts repo rate
Repo Rate Reduced: The RBI MPC lowered the repo rate by 50 basis points to 5.5%.
Why: To support economic growth by lowering borrowing costs for consumers and businesses. This aims to reduce loan EMIs and make credit cheaper, encouraging spending and investment.
Cumulative Reduction: This reduction is part of a cumulative 100 bps cut in recent months.
Why: Reinforces the central bank’s efforts to stimulate the economy through lower interest rates.
Boost Credit Growth: The rate cut is expected to stimulate borrowing and lending activity.
Why: Increased credit availability and lower costs are intended to drive consumption and investment, supporting GDP growth.
Support GDP & Inflation: The policy aims to support India’s projected GDP growth (6.5% for FY26). The inflation outlook has also been revised down (to 3.7%).
Why: Monetary policy is a key tool used by the MPC to balance price stability (inflation control) with economic growth objectives. The lower inflation outlook provides room for rate cuts to prioritize growth.
Shift in Stance: The policy stance moved from ‘accommodative’ to ‘neutral’.
Why: Provides the RBI flexibility for future monetary actions based on evolving economic conditions, suggesting the significant easing phase might be moderating.
Related Action (CRR Cut): A phased reduction in the Cash Reserve Ratio (CRR) was also announced (from 4% to 3%).
Why: To inject significant liquidity into the banking system, enabling banks to lend more easily and further supporting lower interest rates.
Ladakh Reg & 6th Sched
Following the abrogation of Article 370 and becoming a Union Territory without a legislature, Ladakh’s people (LAB, KDA) demanded inclusion under the Sixth Schedule for constitutional protection of their land, jobs, and cultural identity, along with land ownership restrictions and a legislative assembly.
The Centre responded by issuing regulations for Ladakh under Article 240, which include domicile-based job reservations (15 years residency criteria), overall reservation caps (85% + 10% EWS), designation of multiple official languages, and reserving one-third of LAHDC seats for women. (Why: These measures are the Centre’s attempt to address some demands like jobs and language, but are seen as less robust than constitutional protection).
Ladakhis advocate for Sixth Schedule status over Article 240 regulations because the Sixth Schedule is constitutionally protected, providing greater autonomy and security through Autonomous District Councils (ADCs) with legislative power over land, culture, etc. (Why: Article 240 regulations can be unilaterally altered, while the Sixth Schedule ensures long-term protection, crucial for safeguarding the fragile ecosystem, tribal land rights (97% tribal population), and cultural identity from outside pressures).
The Sixth Schedule governs tribal areas in four North-Eastern states via ADCs having powers to legislate on matters like land, forests, and social customs, offering a degree of self-governance and autonomy not available under current administrative LAHDCs or Article 240 regulations. (Why: It represents the robust framework sought for protecting Ladakh’s unique needs).
Suggested measures to address Ladakh’s needs include enacting a customized constitutional framework, implementing strict land ownership restrictions similar to other protected states, and granting legislative and financial autonomy to LAHDCs. (Why: These are seen as necessary steps to balance development, tribal rights, and ecological sustainability in Ladakh, potentially as alternatives or additions if full Sixth Schedule inclusion is not granted).
Daojali Hading Neolithic Site
Recent archaeological findings at Daojali Hading reaffirm its status as a significant Neolithic habitation site in Assam, confirming human presence over 2,700 years ago.
The discovery of domestic artefacts like polished stone tools (celts, grinding stones), pottery (cord-marked, low-fired), mortars, and pestles provides insights into the daily life, technology, and practices of the people living there during the New Stone Age.
Evidence of early metallurgical activity indicates that inhabitants were beginning to engage in metal working, a key transition phase from purely stone-based technology.
The presence of jadeite stones, unique to the site in the region and found elsewhere like China, strongly suggests ancient trade routes and cultural links existed between Northeast India and distant East/Southeast Asian regions over two millennia ago.
The site is identified as a prominent example of a Neolithic settlement in Northeastern India, contributing to the understanding of this period in the region.
INS Arnala SWC
INS Arnala, India’s first Anti-Submarine Warfare Shallow Water Craft (ASW-SWC), is set to be commissioned by the Indian Navy at Visakhapatnam.
It is the lead ship of a series of 16 vessels, built by GRSE, Kolkata, in partnership with L&T Shipbuilders, under a Public-Private Partnership model.
Key to India’s self-reliance in defence, it boasts over 80% indigenous content, integrating systems from major Indian firms and contributions from over 55 MSMEs.
Designed specifically for anti-submarine warfare, subsurface surveillance, search & rescue, and low-intensity maritime operations to enhance coastal defence capabilities. This is important for detecting and countering threats in shallow waters amid increasing submarine activity in the region.
With a length of 77 meters and over 1,490 tonnes displacement, it is the largest Indian warship powered by a diesel engine–waterjet propulsion system.
Named after the historic Arnala Fort, it symbolizes India’s rich maritime heritage.
India Electric Car Scheme
The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) was issued by the Centre, initiated by the Ministry of Heavy Industries (MHI).
Its primary objective is to boost domestic manufacturing of electric passenger cars (e-4W). This is crucial to reduce reliance on imports and build India’s own EV industry.
The scheme aligns with India’s broader commitments, including achieving net-zero emissions by 2070 and promoting sustainable mobility. This links the scheme to national environmental and transport policy goals.
Eligibility is restricted to companies/groups with significant automotive revenue (min Rs 10,000 cr) and existing investment (min Rs 3,000 cr in fixed assets). This ensures that only serious and established players with the financial capacity for large-scale investment can participate.
Approved applicants get a customs duty concession, importing expensive (> USD 35,000) electric car Completely Built-in Units (CBUs) at a reduced 15% duty for 5 years (capped at 8,000 units/year). This allows companies to introduce high-end models while they establish local manufacturing.
A mandatory investment commitment of at least Rs 4,150 crore within 3 years is required, alongside establishing manufacturing units and commencing production. This forces rapid and substantial investment in building domestic production capabilities.
Applicants must achieve phased Domestic Value Addition (DVA) of 25% within 3 years and 50% within 5 years. This requirement, aligned with the PLI scheme, is key to developing a strong local supply chain and ensuring that a significant portion of the car is made in India, boosting local industry and employment.
The overarching goal is to establish India as a global EV manufacturing hub. This positions the scheme as a strategic step towards making India a significant player in the international electric vehicle market.
NITI Calls for Federalism
NITI Aayog’s 10th Governing Council meeting, themed “Viksit Rajya for Viksit Bharat@2047”, stressed cooperative federalism’s importance for national development goals.
Key meeting outcomes included addressing state-specific demands (like Tamil Nadu’s tax share, Punjab’s water rights), promoting trade/investment by reducing bottlenecks, enhancing security preparedness, and discussing state strategies for economic and social reforms.
NITI Aayog supports federalism by acting as a bridge aligning state/national goals (Team India Hub) and fostering competitive federalism through data-driven rankings (like ADP) to drive sectoral improvements.
Major challenges identified include infrequent federal dialogue leading to policy paralysis, the Centre using financial leverage undermining spirit, states demanding fairer tax devolution (50%) citing fiscal constraints, and unresolved inter-state disputes over resources like water.
Proposed measures to strengthen cooperation involve regularizing NITI Aayog/GST Council meetings, ensuring fairer resource sharing (increased tax devolution, performance grants), encouraging state-to-state partnerships, and improving inter-state water coordination.
A National Academy of Medical Sciences (NAMS) report points out major gaps in cancer care in India, especially in early diagnosis and timely treatment of breast cancer. Why: This indicates a significant challenge in effectively managing a prevalent disease among women.
Over 60% of breast cancer patients in India are diagnosed at late stages (Stage 3 or 4), starkly different from the US where 60% are diagnosed early (in situ or Stage 1). Why: Late diagnosis severely limits treatment options and outcomes.
More than 50% of Indian patients delay seeking medical advice for over 3 months. Why: This significant patient delay is a key reason for the high rate of late-stage diagnoses.
India ranks 3rd globally in cancer cases and the burden is projected to rise by 57.5% by 2040. Why: This highlights the massive and growing scale of the cancer problem requiring urgent and improved care strategies.
Ayushman Arogya Mandirs (AAMs), upgraded primary health centers, have conducted over 10 crore breast cancer screenings by 2023. Why: This shows an initiative to improve early detection and accessible services, particularly for underserved communities, as part of strengthening primary healthcare.
AAMs offer a wide range of free, accessible health services beyond maternal and child care, including non-communicable disease treatment and palliative care. Why: This integrated approach aims to address health needs, including cancer care and support, at the grassroots level.
G7
Indian Prime Minister Narendra Modi was invited by Canada to attend the 2025 G7 Summit in Kananaskis, Alberta. This is news because it signals potential improvement in India-Canada relations which were strained after the 2023 Nijjar killing controversy.
The G7 is a forum of seven major industrialized democracies (Canada, France, Germany, Italy, Japan, UK, US) plus the EU, formed to coordinate on global economic and political challenges. This provides context for why India is invited (as a significant global player) and the type of discussions expected.
The invitation comes despite recent tensions, following a phone call where leaders discussed ties, law enforcement cooperation, and security concerns. This highlights the complexity of the relationship and the effort to move past recent difficulties.
Canada emphasized India’s global economic importance and role in supply chains as key reasons for the invitation. This indicates the G7’s recognition of India’s growing influence beyond the G7 membership.
Modi’s acceptance, acknowledging shared democratic values, reinforces the positive intent behind the move. The invitation of non-member countries like India is a regular feature, but this specific instance is news due to the bilateral context.
G7 decisions are not legally binding but carry significant political weight, meaning India’s participation allows engagement on crucial global issues like economic stability, security, and supply chains.
Insolvency Code
The IBC is India’s landmark law (2016) to streamline insolvency resolution for individuals, companies, and firms in a time-bound manner, crucial for economic governance.
Its main objectives are time-bound resolution (target 330 days), maximizing asset value, promoting entrepreneurship and credit availability, and balancing stakeholder interests to improve ease of doing business.
It provides a single framework covering all entities and establishes key institutions like IBBI (regulator), NCLT/DRT (adjudicating authorities), and Resolution Professionals (RPs) to manage the process.
Creditors can initiate proceedings on default of ₹1 crore or more, and control shifts from management to the Committee of Creditors (CoC) on initiation, empowering creditors.
Achievements include reducing NPAs (e.g., from 11.2% to 2.8%), promoting credit discipline, and recovering substantial amounts (over ₹3.89 lakh crore), enhancing investor confidence.
Challenges include significant delays often exceeding the 330-day limit due to judicial backlogs, low recovery rates in recent cases (around 28.6%), inadequate infrastructure, valuation disputes, and lack of clarity on certain aspects, hindering full effectiveness.
Its ultimate effectiveness relies on improvements in judicial efficiency, legal clarity, and institutional capacity to overcome current challenges.
India Water Source-Sea
India faces a severe water crisis due to pollution, scarcity, overexploitation, and fragmented governance, indicating the current isolated management system is failing.
The Source-to-Sea (S2S) approach emerges as a critical alternative, recognizing the ecological interconnectedness of systems from glaciers and mountains to the ocean.
S2S promotes integrated governance across land, freshwater, estuarine, and marine domains because human upstream activities significantly impact downstream ecosystems and ocean health.
India’s current water management is fragmented across departments and levels, leading to policy mismatch, coordination gaps, severe pollution, and over-extraction of resources like groundwater.
The S2S approach is formalized under initiatives like the Manila Declaration and supported by global efforts like the UN’s International Year of Glaciers 2025 and the Decade of Ocean Science, highlighting the need for holistic action.
Integrating S2S into India’s national water policy requires new institutional mechanisms, multi-stakeholder platforms, and science-based tools to ensure holistic, sustainable, and resilient water management.
Safe Food
World Food Safety Day (June 7) highlights the theme “Food Safety: Science in Action,” focusing on India’s evolution from basic anti-adulteration laws to a modern, science-based framework led by the FSSAI. This shift signifies a major regulatory modernization aligning India globally.
India’s food safety journey progressed from the binary Prevention of Food Adulteration Act, 1954 to the risk-based, scientific Food Safety and Standards Act, 2006, establishing FSSAI. This move incorporated risk analysis, MRLs, and ADIs.
Robust food safety is crucial for public health (reducing foodborne illness, long-term issues), building consumer trust, economic impact (reducing healthcare costs, supporting trade), global trade compliance (aligning with Codex), and sustainable development (promoting safe, nutritious food).
Key challenges remain, including a lack of India-specific data for standards (needing a Total Diet Study), poor communication of scientific concepts like MRLs to the public, legacy regulatory issues like outdated MSG labelling causing misinformation, and institutional weaknesses such as inadequate trained personnel and fragmented state implementation.
Moving forward requires strengthening scientific research specific to India, improving risk communication to consumers, building institutional capacity, regularly revising regulations based on science, and enhancing dialogue with stakeholders. These steps are vital for effective, transparent, and trust-based food safety.
China Dams & Brahmaputra India
Concerns raised over China’s hydroelectric projects on the Brahmaputra River, particularly near the border with India, affecting India’s water security.
Why: China’s construction of major dams like the Medog Hydro Project near the ‘Great Bend’ could alter the river’s natural flow and course before it enters India.
Potential alteration of water flow could reduce flow downstream into India and Bangladesh, raising concerns about water scarcity, especially as Chinese projects may have minimal storage but affect natural flood cycles.
Why: Changes in flow impact water availability for irrigation and domestic use downstream.
Ecological disruptions are feared due to altered water flow.
Why: This could affect the river’s ecosystems in India, including vital wildlife habitats like Kaziranga National Park (home to rhinos), potentially disrupting fish migration patterns and the habitat of other species.
The Brahmaputra is crucial for India, holding over 30% of the nation’s water resources and 41% of its hydropower potential, with significant flow contribution from tributaries within India.
Why: This highlights India’s high dependence on the river downstream, making upstream activities a critical concern despite India’s own hydro projects on its tributaries.
