Daily Current Affairs- 1st July 2025

Daily Current Affairs- 1st July 2025

India Commissions Second Project 17A Stealth Frigate in Record Time

In the News: On July 1, 2025, India’s Navy welcomed INS Udaygiri, the second vessel under the advanced Project 17A (Nilgiri-class), built by Mazagon Dock Shipbuilders Limited (MDSL) in Mumbai. Delivered in just 37 months from launch, this commissioning showcases India's rapidly advancing naval manufacturing capabilities.

Key Points:

• Record Delivery Time: INS Udaygiri was delivered in a swift 37 months from launch—remarkable for a highly complex stealth warship.
• Stealth & Design Enhancements: The hull is about 54% larger than earlier Shivalik-class (Project 17) frigates. It features advanced stealth shaping, reduced radar and infrared signature, and significant sensor upgrades.
• Advanced Weapons & Sensors: Equipped with supersonic surface-to-surface missiles, medium-range surface-to-air missiles (MR-SAM), a 76 mm main gun, and CIWS (30 mm + 12.7 mm). These systems represent a significant leap from Project 17 capabilities.
• Propulsion & Platform Management: Powered by a CODOG (Combined Diesel or Gas) system that drives controllable-pitch propellers, supported by an Integrated Platform Management System (IPMS) for operational efficiency and reliability.
• High Indigenous Content: The ship boasts over 75% indigenous systems and weapons, developed by more than 200 MSMEs, reflecting a strong push for self-reliance in defence manufacturing.
• Integrated Construction Approach: Employs “block-stage pre‑outfitting”—modules are substantially outfitted before assembly, reducing overall build time and increasing efficiency.
• Warship Design Bureau Milestone: INS Udaygiri marks the 100th vessel designed by the Navy’s Warship Design Bureau—emphasizing India's growing ship-design expertise.
• Fleet Strengthening and Timelines: Udaygiri is the second of seven P‑17A frigates being built jointly by MDSL (Mumbai) and GRSE (Kolkata). The remaining five are scheduled for delivery by the end of 2026, bolstering India’s blue-water naval capabilities.
• Heritage & Legacy: Named after the earlier INS Udaygiri, a steam-powered vessel decommissioned in August 2007 after 31 years of service, this ship continues the naval legacy in a modern avatar. 

India Achieves 78% Decline in Under-Five Mortality Rate, Surpassing Global Average

In the News: In its 2024 report, the UN Inter-Agency Group for Child Mortality Estimation (UNIGME) highlighted that India achieved an impressive 78% drop in its under-five mortality rate (U5MR) between 1990 and 2023, well above the global decline of 61%. 

Key Points:

• Under-Five Mortality Reduction: U5MR fell 78% in India vs. 61% globally from 1990–2023 . Neonatal Mortality Rate (NMR) declined 70% in India compared to 54%
• Zero‑Dose Children Decline: The share of children who have never received any vaccine dropped from 11% in 2023 to 0.06% in 2024.
• Immunization Programme Reach: India’s Universal Immunization Programme (UIP) annually vaccinates around 9 crore pregnant women and 2.6 crore infants, with 1.3 crore sessions conducted by frontline health workers.
• Strategic Campaigns: Key initiatives include Zero Dose Implementation Plan 2024 in 143 districts, and Mission Indradhanush which has immunized 46 crore children and 1.32 crore pregnant women since its intensification in 2017.
• Broader Child & Maternal Health Gains: Maternal Mortality Ratio (MMR) dropped by 86% since 1990, now around 80 per lakh live births, surpassing the global reduction of 48%. India also registered significant declines in infant mortality and stillbirth rates .
• Global Recognition: India’s achievements have earned it international commendations—included in UNIGME’s 2024 report and recognized for exemplary vaccine coverage. 

India’s Bank GNPAs Fall to Multi‑Decade Low of 2.3%: RBI

In the News: On June 30, 2025, the Reserve Bank of India reported in its Financial Stability Report that Gross Non‑Performing Assets (GNPAs) of scheduled commercial banks dropped to a multi-decade low of 2.3% as of March 2025, down from 2.6% in September 2024. The RBI projected a slight uptick to about 2.5–2.6% by March 2027 under baseline economic conditions.

Key Points:

• GNPA Improvements: GNPAs declined from 2.6% in Sep 2024 to 2.3% in March 2025. Despite this improvement, RBI forecasts a rise to approximately 2.5–2.6% by March 2027 in normal growth scenarios.
• Explosion of Loan Write-Offs Write-offs (including technical) rose to 8% of total GNPA in FY25, up from 29.5% in FY24—driven largely by private and foreign banks. Public sector banks saw a marginal decline in write-off activity .
• Stable Fresh Slippages: Half-yearly slippage ratio (new NPAs vs. standard advances) stayed steady at 7%, indicating controlled fresh deterioration.
• Segment-Wise GNPA Trends:
  • Agriculture: Highest GNPA share at 1%.
  • Personal loans: Stable at 2%.
  • Credit cards: PSBs at a high 3%, private banks at 2.1%.
• Large Borrower Profile:
  • Large borrowers account for 5% of GNPA—reduced from 43.9% earlier. Their GNPA ratio dropped to 1.9% in March 2025 from 3.8% in September 2023.
  • No top‑100 borrowers are currently classified as NPAs; they represent ~15.2% of total banking credit.
• Macro Stress Scenarios: Under baseline forecasts of 6.5–6.7% GDP growth, GNPA may increase modestly to 5–2.6% by March 2027.
• Under severe stress scenarios, GNPAs could surge to 3–5.6%, though banks’ capital positions remain robust.
• Capital Ratios & Resilience: Common Equity Tier 1 (CET1) ratio was 6% in March 2025, expected to stabilize near 15.2% by March 2027 (baseline), falling to ~12.5–12.9% under stress. All 46 banks exceed regulatory minimums under both baseline and stress conditions 

QUAD Launches First‑Ever At‑Sea Observer Mission to Boost Maritime Security

In the News: On June 30, 2025, the QUAD nations—India, the United States, Japan, and Australia—launched their inaugural “QUAD at Sea Ship Observer Mission” aboard the USCGC Stratton, marking a breakthrough in coast guard cooperation under the Wilmington Declaration agreed at the September 2024 QUAD Leaders’ Summit.

Key Points

• Cross-Embarkation Missions:
• Two officers, including women, from each QUAD nation are onboard USCGC Stratton on its journey to Guam, fostering exchange of best practices and joint operations at sea.
• Mission Objectives:
  • Enhance interoperability and operational coordination
  • Strengthen maritime domain awareness
  • Promote a rules-based, inclusive Indo-Pacific
  • Focus on maritime safety, surveillance, and disaster-response readiness.
• Strategic Context: Initiated under the Wilmington Declaration, the mission signals a shift in QUAD cooperation—from naval exercises like Malabar to coast guard-level integration, reflecting a holistic maritime security strategy.
• India’s Role: Participation aligns with India's SAGAR (Security and Growth for All in the Region) doctrine and the Indo-Pacific Oceans Initiative (IPOI), reinforcing its leadership in regional maritime diplomacy.
• Future Expansion: The mission is the first of its kind and lays the groundwork for future at-sea observer operations, aiming to build trust and resilience amid evolving regional maritime challenges 

G7 Nations Agree to Exempt U.S. Firms from Global Minimum Tax

In the News: G7 finance ministers reached an agreement to implement a "side‑by‑side" system, effectively exempting U.S. (and U.K.) multinationals from the 15% Pillar Two global minimum tax framework, in exchange for the U.S. removing its proposed retaliatory corporate tax (Section 899) from domestic legislation.

Key Points:

• Side‑by‑Side System: Under the deal, U.S.-headed companies are fully excluded from both the Income Inclusion Rule (IIR) and Under‑Taxed Profits Rule (UTPR), while still respecting U.S. minimum tax regimes like GILTI.
• Removal of "Revenge Tax": In return, the U.S. removed Section 899—a proposed retaliatory tax on foreign firms—forging consensus and ensuring stability.
• K. Firms Covered Too: U.K. companies also benefit from this carve-out, gaining certainty and relief from potential extra international levies.
• Conflict Over Fairness: Critics argue the carve-out rewards U.S. firms at the expense of other multinationals and undermines the original goal of preventing profit shifting.
• Effect on Inclusive Framework: Though the U.S. withdrawal could destabilize the Pillar Two consensus, proponents say the deal preserves core gains and allows for further refinements within the OECD framework.
• Impact Estimates: U.S. Treasury Secretary Scott Bessent suggested the agreement could save U.S. firms over $100 billion in overseas tax over a decade 

Why Elon Musk Is Calling for a New Political Party in the U.S.

In the News: In late June 2025, Elon Musk renewed his call to form a new U.S. political party—likely dubbed the “America Party”—in direct response to the Senate's ongoing debate over Trump’s high-spending and debt-heavy “Big Beautiful Bill.” He contends the passage of this bill would cement a bipartisan “uni-party”, making both Republicans and Democrats complicit in excessive government debt and spending.

Key Points

• Catalyst: The “Big, Beautiful Bill”: Musk blasted the Senate package—projected to add trillions to national debt—as a “disgusting abomination” and “biggest debt increase in history,” calling out supporters as shameless hypocrites.
• What He’s Proposed: Musk is exploring a centrist third-party—the “America Party”—to give voice to the “80% in the middle” he believes are unrepresented by either major party.
• Political Weapons Deployed: He has pledged to back primary challengers against incumbent Republicans supporting the bill and leverage his America PAC to influence elections.
• Repercussions & Pushback: Donald Trump accused Musk of undermining national interest, even threatening to review subsidies for Tesla and SpaceX and suggesting deportation if Musk persisted.
• Rising Support from Centrists Former Democratic presidential hopeful Andrew Yang expressed interest in formalizing Musk’s initiative, potentially merging it with the Forward Party