Daily Current Affairs- 8th June 2025

Daily Current Affairs- 8th June 2025

Net FDI Falls 96% in 2024–25 to $353 Million; Gross FDI Remains Robust

In the News: India’s net foreign direct investment (FDI)—the difference between gross inflows and the sum of outflows and repatriation—plummeted by 96.5%, falling from US$10 billion in FY 2023–24 to just $353 million in FY 2024–25. Despite this steep decline in net FDI, gross inbound FDI continued to grow, showing the resilience and attractiveness of India’s investment climate.

Key Points:

• Net FDI Collapse: Net FDI dropped to $353 million, down 96.5% from $10.1 billion in the previous year—the lowest on record
• Drivers Behind the Decline: Large-scale repatriation by foreign investors—over $51.5 billion, the highest in nearly a decade—driven by exits via profitable IPOs such as Swiggy and Hyundai.
• Surge in outward FDI: Indian companies invested $29.2 billion abroad, a sharp 75% increase year‑on‑year.
• Gross FDI Growth: In contrast, gross inbound FDI rose by 13.6–13.7%, reaching $81 billion, the strongest inflow since FY 2019‑20. Over 60% of these inflows were concentrated in manufacturing, financial services, energy, and communication sectors, primarily from Singapore, Mauritius, UAE, the Netherlands, and the US.
• Market Maturity Indication: RBI Governor Sanjay Malhotra noted the net FDI decline reflects a mature market where investors can freely enter and exit. The trend signifies greater market depth and confidence, not a crisis in investor interest .
• Implications for Economy: Sustained growth in gross FDI reaffirms India’s position as a preferred destination for foreign capital, supporting job creation, technology transfers, and infrastructure development. Elevated outward FDI and repatriation reflect evolving strategies by Indian corporations and global investors, optimizing capital around global supply chain shifts 

 

Gaza‑bound Aid Boat Madleen Carrying Greta Thunberg Diverted to Israel

In the News: Israeli forces intercepted the British‑flagged yacht Madleen in international waters. The vessel, part of the Freedom Flotilla Coalition, carried 12 activists including Greta Thunberg and French MEP Rima Hassan, aiming to deliver humanitarian aid to Gaza. Israeli officials diverted the boat to Israel under their 2007 naval blockade policy, preventing it from reaching Gaza. All passengers were reported safe and unharmed.

Key Points:

• Mission and Symbolism: Madleen embarked from Sicily on June 1, 2025, carrying symbolic aid including rice, baby formula, medical kits, and desalination equipment. Greta Thunberg said the voyage aimed to “challenge Israel’s illegal siege… and spotlight the humanitarian crisis in Gaza”.
• Interception: Israeli forces boarded the yacht around 2 a.m. in international waters and redirected it to an Israeli port. No injuries were reported. Passengers received food and water and are expected to be repatriated.
• Israeli Position: Officials labeled the act a publicity-seeking provocation or “Hamas propaganda”, citing the necessity of the naval blockade to prevent arms smuggling. Israel’s Defence Minister Israel Katz pledged to prevent such attempts, calling for “all necessary measures”.
• Activists' Allegations: The Freedom Flotilla Coalition described the boarding as a forcible interception—“an illegal act” and part of Israel’s broader blockade enforcement. Thunberg and other activists claimed to have been “kidnapped” and demanded safe passage. UN special rapporteur Francesca Albanese urged continued maritime aid effort.
• Aid Rerouting: Israeli authorities confirmed the tiny amount of aid on board Madleen will be redirected to Gaza through official channels. The activists will be deported.
• Contextual Significance: The hostage-taking by Hamas on October 7, 2023, and the ongoing Israeli military operations have intensified the naval blockade. Over 54,000 Palestinians have reportedly died, and famine warnings loom. 

Jaishankar Leaves for France and Belgium for Key Diplomatic Talks

In the News: On June 8, 2025, External Affairs Minister S. Jaishankar departed from New Delhi for a week-long official visit to France, the European Union (EU), and Belgium, scheduled to continue until June 14. This visit follows his recent trip to Germany and aims to enhance strategic, diplomatic, and economic partnerships—including pivotal discussions related to counter-terrorism and India‑EU cooperation.

Key Points:

• Strengthening India–France Ties: Jaishankar will hold bilateral talks with French Foreign Minister Jean‑Noël Barrot in Paris and Marseille, marking 25 years of a strategic partnership rooted in trust and collaboration on global issues. He is set to participate in the inaugural Mediterranean Raisina Dialogue in Marseille, a joint initiative between the Indian Ministry of External Affairs and the Observer Research Foundation.
• EU Strategic Dialogue: In Brussels, India will conduct its first ministerial-level strategic dialogue with EU High Representative Kaja Kallas, involving senior officials from the European Commission and European Parliament, as part of efforts to finalize a free-trade agreement by year-end.
• Deepening Relations with Belgium: Jaishankar will engage in high-level discussions with Belgian Deputy PM and Foreign Minister Maxime Prévot, and meet with senior Belgian leaders. The dialogue aims to strengthen cooperation in trade and investment, green energy, pharmaceuticals, technology, and the diamond industry, while also connecting with the Indian diaspora in Belgium.
• Counter‑Terrorism Focus: China for more than a few years. The visit follows India’s “Operation Sindoor” triggered by the Pahalgam terror attack. Jaishankar will brief European counterparts on India’s zero-tolerance policy towards terrorism and recent military response. 

National Guard Troops Deploy in Los Angeles on Trump’s Orders Amid Immigration Protests

In the News: From June 6–8, 2025, President Donald Trump deployed approximately 2,000 National Guard troops to Los Angeles under Title 10 authority. This unprecedented federal intervention—ordered without the consent of California's governor—was aimed at quelling escalating protests against recent ICE immigration raids.

Key Points:

• Context of Deployment: The National Guard arrived as thousands demonstrated in reaction to ICE operations, which led to several arrests of undocumented migrants. Protests included blocking highways, setting cars ablaze, and confrontations near the Metropolitan Detention Center. Law enforcement used tear gas, flash-bang devices, rubber bullets, and less-lethal rounds to disperse crowds in areas like downtown LA, Compton, and Paramount.
• Federal Authorization & Legal Controversy: Trump invoked Title 10 of the U.S. Code to bypass California’s governor in deploying the National Guard—marking a rare federalization of state troops without local approval, last seen in 1965. Governor Gavin Newsom condemned the order as “unlawful” and “dictatorial,” citing violations of the Posse Comitatus Act and state sovereignty. He formally requested Trump to retract the deployment.
• Political Fallout: California leaders—including Newsom and LA Mayor Karen Bass—denounced the move as an overreach that would exacerbate tensions. Harris and some congressional Democrats labeled the deployment as authoritarian. On the other side, Trump, Homeland Security Secretary Kristi Noem, and Republican officials defended it as a necessary action to control violence and protect federal property during “violent” protests.
• Ground Operations & Security Measures: Troops were stationed near federal detention centers, highways, and downtown corridors. Local law enforcement coordinated with the National Guard to declare multiple “unlawful assemblies” and carry out arrests, including crowd-control interventions with gas canisters. Defence Secretary Pete Hegseth warned of the potential deployment of active-duty Marines if violence continued. 

U.S. Ends Temporary Protected Status for Nepal Nationals

In the News: On June 5, 2025, the Department of Homeland Security (DHS) announced the termination of Temporary Protected Status (TPS) for Nepalese nationals, originally granted after the 2015 earthquake. The designation will officially end at 11:59 p.m. on August 5, 2025, requiring approximately 7,000 non-resident beneficiaries to either adjust their legal status or leave the U.S. 

Key Points:

• TPS Background & Expiration: TPS was granted to Nepalese following the devastating April 2015 earthquake. The latest extension expired on June 24, 2025, and DHS has decided not to renew the designation. The last day of coverage is August 5, 2025, with protections ending at midnight .
• Numbers Affected: Approximately 12,700 Nepalese nationals held TPS status. Of these, nearly 5,500 have become lawful permanent residents. The rest—around 7,000—must depart or obtain legal status by August 5, 2025 .
• DHS Reasoning: DHS Secretary Kristi Noem cited “improved disaster preparedness and reconstruction efforts” in Nepal, concluding that the country no longer meets criteria for TPS designation due to restored normalcy .
• Expiry of Work Permits: Employment Authorization Documents (EADs) tied to TPS are extended automatically until August 5, 2025. Employers must re-verify employee eligibility if EADs expire earlier .
• Next Steps for Beneficiaries: Individuals must either secure alternative legal status (e.g., work visa, green card) or depart the U.S. by the deadline. DHS encourages those leaving to use the CBP Home app to report planned departure