Daily Current Affairs- 18th August 2025

Daily Current Affairs- 18th August 2025

Foxconn’s Bengaluru Plant Begins iPhone 17 Production, Becomes Second-Biggest Unit Outside China

In the News:  Foxconn’s Devanahalli plant in Bengaluru began small‑scale production of the iPhone 17, marking its second‑largest manufacturing unit outside China. The facility, set up with approximately $2.8 billion (around ₹25,000 crore) in investment, commenced operations to supplement ongoing production at its Chennai unit.

Key Points:

• Facility Scale & Investment: The Bengaluru site is Foxconn’s second-largest manufacturing unit outside China, established with an investment of roughly $2.8 billion (~₹25,000 crore).
• Production Launch: The facility has begun small‑scale assembly of the iPhone 17, running in parallel with the company’s Chennai operations.
• Operational Challenges & Solutions: Earlier this year, production faced a brief halt when many Chinese engineers departed abruptly. Foxconn promptly addressed this by bringing in technical specialists from Taiwan and other regions to fill the gap.
• Apple’s India Strategy & Production Growth:
  • Apple aims to boost iPhone production in 2025 to around 60 million units, up from 35–40 million in the previous year.
  • In fiscal year 2024–25, India assembled 60% more iPhones (worth ~$22 billion).
  • Tim Cook noted that the majority of iPhones sold in the U.S. during June 2025 were assembled in India.
• Local Context & Economic Impact:
  • Karnataka’s Industries Minister, M. B. Patil, emphasized that this marks Karnataka’s emergence as a global electronics manufacturing hub, with Bengaluru set to become a key node in Apple’s global production chain.
  • iPhone shipments within India rose 21.5% in the first half of 2025, with Apple capturing 7.5% of the domestic smartphone market.

Ambanis Lead 2025 Hurun India Most Valuable Family Businesses List with Valuation Near One-Twelfth of India’s GDP

In the News : The 2025 Barclays Private Clients Hurun India Most Valuable Family Businesses List was released, revealing that the Ambani family once again leads the rankings, with a staggering valuation of ₹28.2 lakh crore, which is approximately one‑twelfth of India’s GDP

Key Points:

• Top Position – Ambani Family: The Ambani family secured the #1 spot for the second consecutive year, with their family business valued at ₹28.2 lakh crore, roughly one‑twelfth of India’s GDP.
• Other Leading Families: Following the Ambanis are the Bajaj family in second place and the Kumar Mangalam Birla family in third. The Jindal family also features prominently among the top rankings.
• Aggregate Valuation: The top 300 business families collectively command a valuation of about ₹134 lakh crore (~$1.6 trillion), exceeding the GDPs of countries like Turkey and Finland combined.
• Daily Economic Impact: These families generated around ₹7,100 crore per day in value and contributed significantly to the national exchequer.
• Sector Representation: Key sectors represented include industrial products, automobiles, chemicals/petrochemicals, pharmaceuticals, consumer goods, and B2B services.
• Generational Leadership & Governance: A majority are second-generation-led businesses (227 families), with notable third- and fourth-generation entrants (e.g., Mahindra and Birla families).
• Public Listing & Professional Management: Approximately 74% of these firms are publicly listed, and 62 are managed by professional CEOs.
• Employment & Tax Contribution: These family businesses employ over 2 million people and paid ₹1.8 lakh crore in taxes—around 15% of India’s corporate tax collections.

WPI Inflation Remains in Negative Zone for Second Straight Month in July 2025

In the News: India’s Wholesale Price Index (WPI) inflation remained in negative territory for the second consecutive month, with the year-on-year change at –0.58 percent, reflecting ongoing wholesale-level deflation.

Key Points:

• WPI Rate & Trends:
  • Annual WPI inflation fell to –0.58 percent in July 2025, down from –0.13 percent in June.
  • On a month-over-month basis, the WPI actually rose 0.39 percent in July compared to June.
• Contributors to Deflation:
  • The fall was largely driven by softer prices across food articles, mineral oils, crude petroleum & natural gas, and basic metals.
• Segment-level Insights:

Category	YoY Change (July)	Additional Notes
Primary Articles	↑ 1.18 % (MoM)	Driven by increases in crude petroleum & natural gas (2.56%), non-food articles (2.11%), and food articles (0.96%); minerals declined (–1.08%).
Fuel & Power	↑ 1.12 % (MoM)	Mainly led by mineral oils rising 1.98%. Coal and electricity saw declines.
Manufactured Products	–0.14 % (MoM)	Mixed dynamics: rises in certain sub-sectors (e.g., transport equipment, furniture); declines in basic metals, chemicals, food products, paper products.
WPI Food Index	–2.15 % (YoY)	Deeper deflation than the –0.26 % in June.
Vegetables	–28.96 %	Worsened from –22.65 % in June.
Pulses	–15.12 %	Continued major deflation.
Onion & Potato	–44.38 % & –41.26 %	Sharpest deflation among food categories.

• Economic Outlook:
  • Experts like ICRA project that WPI inflation may re-enter positive territory in August, driven by rising food and crude-oil prices, currency depreciation, and unfavorable base effects.
  • The average WPI inflation for FY2026 is expected to hover around 1 percent, alongside a CPI forecast of 3.0–3.2 percent, suggesting nominal GDP growth may be capped at ~8 percent, versus 9.8 percent in FY2025.

President Droupadi Murmu Inaugurates Plumeria Garden, Banyan Grove, and Babbling Brook at Rashtrapati Bhavan

In the News: President Droupadi Murmu officially inaugurated three new attractions — the Plumeria Garden, Banyan Grove, and the Babbling Brook — at Amrit Udyan (formerly Mughal Garden) within the Rashtrapati Bhavan estate in New Delhi.

Key Points:

• New Attractions Added:
  • Plumeria Garden: Features artistic grass mounds and curated floral plantations that enhance visual aesthetics.
  • Banyan Grove: Designed with reflexology paths, Panchtatva (five elements) trails, and immersive forest-inspired soundscapes for a sensory experience.
  • Babbling Brook: A peaceful water feature replacing the previous musical fountain, complete with cascades, sculptural water spouts, stepping stones, and a raised reflecting pool.
• Public Access & Duration: These enhancements form part of Amrit Udyan, which opens to the public from August 16 to September 14, 2025.
• Visitor Facilities & Features: Visitors can book entry online or register on-site via kiosks. Access is through Gate No. 35, with shuttle service from Central Secretariat Metro Station.  The pathway includes diverse sections such as Bonsai Garden, Musical Fountain, Central Lawn, Long Garden, and Circular Garden. Food courts, drinking water points, toilets, and first-aid facilities are positioned along the route.
• Heritage & Design Context: Amrit Udyan spans 15 acres within the 130-hectare Rashtrapati Bhavan estate. It blends Mughal and British landscaping, featuring rich seasonal blooms, water features, and now these sensory-rich installations.  The Babbling Brook, replacing the former musical fountain, offers a serene space for reflection amidst lush greenery.
• Visitor Engagement & Accessibility: The experience is enriched by QR codes along the trail providing details about plant species and design elements. Accessibility enhancements—such as ramps and Braille information—are part of the visitor-friendly offerings.

Pradhan Mantri Viksit Bharat Rozgar Yojana

In the News: Prime Minister Narendra Modi unveiled the Pradhan Mantri Viksit Bharat Rozgar Yojana, a transformative ₹1 lakh crore Employment‑Linked Incentive scheme, during his Independence Day address, aiming to generate over 3.5 crore jobs within two years.

Key Points:

• Scheme Approval & Launch: Approved by the Union Cabinet on July 1, 2025 as an Employment‑Linked Incentive (ELI) scheme.  Launched on August 15, 2025, during the Independence Day address from the Red Fort.
• Objectives & Scale: Financial outlay: ₹99,446 crore to ₹1 lakh crore, targeting the creation of 3.5 crore new jobs over two years.
• Part A: Support for First-Time Employees
  • First-time private sector job seekers with gross wages up to ₹1 lakh/month receive a one-month EPF wage incentive, capped at ₹15,000.
  • Disbursed in two installments—after 6 months and 12 months of sustained employment—conditional on completion of a financial literacy program.
• Part B: Support for Employers
  • Employers receive incentives for creating new jobs: Up to ₹3,000/month per additional employee, for 2 years. For manufacturing sector employers, incentives extend into the 3rd and 4th years as well
• Implementation & Portal Launch:
  • The registration portal went live on August 18, 2025, for both employers and first-time employees.
  • Payments:
    • Part A payments via DBT (Aadhaar Bridge Payment System).
    • Part B payments via PAN-linked accounts
• Awareness & Outreach:
  • An awareness seminar was held at the EPFO office in Ludhiana, highlighting benefits:
    • ₹15,000 incentive for first-timers (in two installments).
    • Aimed at promoting job stability and retention.
    • Scheme runs from August 1, 2025 to July 31, 2027, with a ₹99,446 crore budget.
    • Expected to create 3.5 crore jobs, with 1.92 crore first-time job seekers benefiting.
• Scheme Goals & Focus: Formalize employment, enhance social security, increase employability—especially in the manufacturing sector.

Overseas Citizen of India Scheme

In the News: Home Minister Amit Shah launched a revamped OCI portal, offering a user-friendly interface for the approximately five million existing OCI cardholders and new applicants, improving service delivery and supporting their ease of access. Prime Minister Modi also lauded the upgrade as a leap forward in digital governance.

Key Points:

• Origin & Legal Basis: The OCI Scheme was introduced by amending the Citizenship Act, 1955 through the Citizenship (Amendment) Act, 2003, in response to diaspora calls for dual citizenship.  It officially launched during Pravasi Bharatiya Divas, 2006 in Hyderabad.
• Eligibility Criteria:
  • Available to foreign citizens who:
    • Were Indian citizens on or after January 26, 1950, or were eligible for such citizenship; or
    • Resided in territories that became part of India after August 15, 1947; or
    • Are children, grandchildren, or great-grandchildren of such persons; or
    • Are spouses (of at least 2 years) of Indian citizens or existing OCI holders.
  • Ineligible individuals include:
    • Anyone who has been a citizen of Pakistan or Bangladesh, or whose ancestors were; and
    • Certain foreign military personnel (with exemptions, e.g., Israelis under certain conditions)
• Privileges Awarded:
  • OCI holders receive:
    • A lifelong, multiple-entry, multi-purpose visa for India.
    • Exemption from registration with FRRO for any length of stay.
    • Parity with Non-Resident Indians (NRIs) in economic, financial, and educational fields—except in the acquisition of agricultural or plantation land.
    • Parity with Indian citizens in terms of domestic airfare and entry to monuments, national parks, etc.
    • Lifetime visa status means no additional “U” visa stamps are needed in passports.
• Restrictions:
  • OCI Status does not grant:
    • Political rights (e.g., voting, office-holding).
    • Eligibility for public employment or constitutional positions.
    • Permission to acquire agricultural or plantation property.
  • OCI holders require Protected Area Permits (PAP) or Restricted Area Permits (RAP) for certain regions; subject to additional registration if their address or occupation changes.
• Renewal & Conversion:
  • Renewal guidelines:
    • No renewal needed for renewals before age 20 or after 50—documents can simply be uploaded online.
    • OCI must be re-issued once when a new passport is issued between ages 20 and 50.
  • The older PIO Card scheme was phased out and merged into the OCI scheme—PIO holders were automatically converted to OCI in 2015; PIO cards remain valid until end of 2025.

SRVAs and Internationalization of Rupee

In the News: The Reserve Bank of India (RBI) announced that foreign entities maintaining Special Rupee Vostro Accounts (SRVAs) can now invest their surplus rupee balances in central government securities, without needing to register as Foreign Portfolio Investors (FPIs). This policy tweak is part of India's broader push to make the rupee a more prominent player in international trade.

Key Points:

• What Are SRVAs?: SRVAs are rupee-denominated accounts maintained by Indian banks on behalf of foreign banks to facilitate trade settlements in Indian rupees (INR) instead of foreign currencies.
• Recent RBI Reforms: Foreign SRVA holders can now invest surplus balances in government bonds and Treasury Bills (T‑Bills).  Previously, only 30% of SRVA balances could be allocated to short-term debt instruments; this cap may soon be lifted.
• Simplified Access: Authorised Dealer (AD) Category-I banks are now empowered to open SRVAs on behalf of foreign banks with which they have correspondent relationships, without seeking RBI’s prior approval—accelerating the onboarding process.
• Scale of Adoption: As of December 2024, 156 SRVAs were operational across 26 Indian banks, opened by 123 correspondent banks from 30 countries—reflecting expanding international adoption.