Category: ECONOMICS
Context: The recent developments in the Bhushan Power and Steel Ltd. case have reignited concerns around the finality of resolution outcomes and the predictability of the framework.
Learning Corner:
Insolvency and Bankruptcy Code (IBC), 2016
The Insolvency and Bankruptcy Code (IBC), 2016 is India’s landmark legislation aimed at consolidating and streamlining the insolvency resolution process for individuals, companies, and partnership firms in a time-bound manner.
Objectives:
Key Features:
Achievements:
Challenges:
Conclusion:
The IBC is a transformative reform in India’s economic governance. While it has improved resolution efficiency and credit discipline, its effectiveness depends on judicial efficiency, legal clarity, and institutional capacity building.
Source : THE HINDU
Category: ECONOMICS
Context The Reserve Bank of India (RBI), in its June 2025 Monetary Policy Committee (MPC) meeting, announced two major steps to support economic growth and liquidity
Decoding Context:
These steps are aimed at boosting credit growth, encouraging spending, and supporting India’s GDP, which is projected at 6.5% for FY26. The inflation outlook for the year has also been revised downward to 3.7%. The RBI’s policy stance has shifted from ‘accommodative’ to ‘neutral’, providing flexibility for future monetary actions.
Learning Corner:
Bank Rates & Monetary Policy Tools – Quick Comparison Table
Type of Rate | Definition | Duration | Collateral | Key Purpose/Usage | Important Notes |
---|---|---|---|---|---|
Bank Rate | Rate at which RBI lends long-term funds to banks | Long-term | No | Signals monetary policy stance | Higher bank rate → costlier loans → reduced liquidity |
Repo Rate | Rate at which RBI lends short-term funds to banks against securities | Short-term | Government Securities | Main tool to control inflation & liquidity | Lower repo → cheaper loans → more investment & consumption |
Reverse Repo Rate | Rate at which RBI borrows from banks using securities | Short-term | Government Securities | Used to absorb excess liquidity | Higher rate → banks park funds with RBI → reduced lending |
Marginal Standing Facility (MSF) | Rate for emergency overnight borrowing from RBI | Overnight | Government Securities | For banks exceeding normal borrowing limits | MSF > Repo (by 25 bps) – emergency window |
Standing Deposit Facility (SDF) | Facility to absorb excess liquidity without collateral | Variable | No | Primary tool for liquidity absorption (since 2022) | Replaced Reverse Repo for liquidity control |
Call Money Rate | Rate of 1-day borrowing/lending in the interbank market | Intraday / Overnight | No | Indicates short-term liquidity conditions | Market-determined, highly volatile |
Monetary Policy Committee (MPC)
What is MPC?
The Monetary Policy Committee (MPC) is a statutory and institutional body constituted by the Reserve Bank of India (RBI) to determine the policy interest rate (repo rate) required to achieve the inflation target set by the Government of India.
Background
Objectives
Composition of MPC
Total 6 members:
Members | Appointed By |
---|---|
RBI Governor (Chairperson ex-officio) | RBI |
RBI Deputy Governor (in charge of MPC) | RBI |
One RBI official nominated by Central Board | RBI |
3 external members | Appointed by Government of India |
Functions of MPC
Significance
Source : THE HINDU
Category: INTERNATIONAL
Context : Indian Prime Minister Narendra Modi has accepted an invitation from Canadian Prime Minister Mark Carney to attend the G7 Summit in Kananaskis, Alberta.
Decoding Context
This development comes amid previously strained India-Canada relations following the 2023 controversy involving the killing of Sikh activist Hardeep Singh Nijjar.
In a phone call on June 6, the two leaders discussed the longstanding bilateral relationship, underlining strong people-to-people ties and significant commercial linkages. Both agreed to continue law enforcement cooperation and address security concerns.
Carney emphasized India’s global economic importance and its critical role in global supply chains as reasons for the invitation. The move is widely seen as a signal of improving ties, despite ongoing challenges.
Modi acknowledged the invitation on social media, highlighting shared democratic values and expressing hope for stronger cooperation between the two countries.
Learning Corner:
G7 – Group of Seven
Overview
The G7 is an intergovernmental political and economic forum of the world’s most advanced and industrialized democracies, formed to coordinate responses to global challenges—economic, security, climate, and more.
Current Members (7 Nations + EU Participation)
Canada, France, Germany, Italy, Japan, United Kingdom, United States
NOTE: European Union (EU): Participates but is not a formal member.
Historical Background
Objectives and Role
Objective | Description |
---|---|
Economic Coordination | Harmonize policies among major economies to foster global economic stability |
Global Governance | Set the agenda on climate, health, digital taxation, development aid, etc. |
Security & Geopolitics | Address issues like terrorism, nuclear proliferation, and war (e.g., Ukraine) |
Humanitarian Support | Focus on food security, pandemic response, gender equality, education |
Annual G7 Summit
Decisions are not legally binding but carry high political weight.
Recent Key Themes (2022–2025)
Year | Host Country | Major Agenda Themes |
---|---|---|
2022 | Germany | Climate protection, global health, food security, Ukraine |
2023 | Japan | Economic resilience, AI governance, nuclear disarmament |
2024 | Italy | Africa partnerships, climate financing, energy security |
2025 | Canada | Global supply chains, democratic resilience, tech ethics |
Criticism of G7
India–Canada Relations
Overview
India and Canada share historically cordial relations based on democratic values, multiculturalism, people-to-people ties, education, and trade. However, the relationship has witnessed periodic strains, especially on issues related to Khalistani separatism.
Key Dimensions of Bilateral Relations
Recent Issues & Strains
Way Forward
Source: THE HINDU
Category: CULTURE
Context : 800-Year-Old Shiva Temple Unearthed near Madurai
Overview
Historical Significance
Role of Community & Experts
Pandya Dynasty Context
Learning Corner:
Temple Architecture in India
Style | Region | Key Features | Examples |
---|---|---|---|
Nagara | Northern India | Curvilinear shikhara (spire), no boundary walls, multiple towers | Kandariya Mahadev (Khajuraho), Lingaraja (Odisha) |
Dravida | Southern India | Pyramid-shaped vimana (tower), enclosed courtyard, large gopurams (gateway towers) | Brihadeeswarar Temple (Thanjavur), Meenakshi Temple (Madurai) |
Vesara | Deccan region (Central-South) | Combination of Nagara and Dravida features, intricate carvings | Temples at Pattadakal, Badami |
Source : THE HINDU
Category: DEFENCE
Context : The Indian Navy is set to commission its first Anti-Submarine Warfare Shallow Water Craft (ASW-SWC), named INS Arnala, at Visakhapatnam
Details of Warship:
INS Arnala is the lead ship in a series of 16 vessels designed and built by Garden Reach Shipbuilders & Engineers (GRSE), Kolkata, in partnership with L&T Shipbuilders under a Public-Private Partnership model.
Key Features:
Strategic Importance:
INS Arnala will strengthen the Navy’s ability to detect and counter undersea threats in shallow coastal waters, crucial amid increasing submarine activity in the region.
Learning Corner:
Anti-Submarine Warfare Ships of India
Source: THE HINDU
Date: 7-06-2025 | Mainspedia | |
TOPIC: Water management in India: Source to Sea approach |
GS Paper III – Environment
GS Paper II – Governance |
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Introduction (Context)
India is grappling with a water crisis marked by pollution, scarcity, overexploitation, and fragmented governance. In light of growing scientific consensus and global commitments—such as the UN’s International Year of Glacier Preservation 2025—a Source-to-Sea (S2S) approach to water governance is emerging as a critical alternative to the current fragmented systems. |
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Different commitments for Water management |
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What is Source to Sea Approach? |
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Why needed? |
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Formalization of S2S approach |
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Challenges in India |
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Initiatives in India |
However, the Source-to-Sea approach has not yet found space in mainstream water policy planning. Two case studies currently under exploration in India show early signs of S2S uptake.
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Issues with current apporach |
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Value addition | SDGs related to water
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Way forward |
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Conclusion
India’s current water governance model, fragmented and jurisdictionally scattered, is ill-equipped to deal with the complex realities of the 21st-century water crisis. The Source-to-Sea (S2S) approach offers a timely and transformative pathway, recognizing the ecological unity from glaciers to oceans. By aligning scientific research, policy frameworks, and multi-tiered governance systems, India can ensure sustainable and resilient water systems that serve both people and nature. |
Mains Practice Question
Q India’s water crisis is not just about scarcity but about fragmented governance. In this context, discuss the significance of the Source-to-Sea (S2S) approach for water management in India. (250 words, 15 marks)
Date: 7-06-2025 | Mainspedia | |
TOPIC: Food Safety |
GS Paper II – Governance | |
Introduction (Context)
World Food Safety Day 2025, observed on June 7, highlights the theme “Food Safety: Science in Action”. It serves as an opportunity to reflect on India’s shift from basic anti-adulteration laws to a modern, science-based food safety framework led by the FSSAI. However, critical gaps remain in risk assessment, communication, and regulatory coherence. |
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India’s journey on Food safety |
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Why food safety is important? |
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Challenges |
Lack of India-Specific Data:
Poor Risk Communication:
Legacy Regulatory Problems, Example of MSG
Institutional Weaknesses:
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Value addition | Terminologies
Food Safety and Standards Act, 2006
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Way forward |
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Conclusion
India’s food safety framework has evolved into a modern, risk-based system backed by FSSAI’s leadership. However, the journey forward must be anchored in scientific evidence, clear communication, institutional competence, and public trust. Eliminating outdated regulations and strengthening India-specific research are essential to ensure that food safety is not just about compliance but about confidence and informed choices. |
Mains Practice Question
Q India’s food safety transformation has been significant but not without its gaps. Critically examine the role of FSSAI and suggest a roadmap for making India’s food safety framework more scientific, transparent, and citizen-friendly. (250 words, 15 marks)
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