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Daily Current Affairs Update – 4th August 2025

News at a Glance

No.TopicGS Paper(s)Why in News (Aug 2, 2025)
1Legal Aid Capacity (Article 39A, NALSA/SLSA)GS-2 (Polity, DPSP)Underfunded, poorly deployed; reforms essential for just, effective access for poor
2Doctor-led Medical InnovationGS-2 (Health), GS-3 (Tech)Doctors lack medtech leadership; push for culture, curriculum, regulatory reforms
3Cost of Free UPIGS-3 (Economy)UPI zero MDR model unsustainable; fiscal strain demands rethink/subsidy alternatives
4Police Reform & EthicsGS-2, GS-4Custodial deaths, systemic deficits; long-awaited anti-torture, professional reforms
5IMF World Economic OutlookGS-3 (Economy)India fastest in growth; factors, comparisons, new challenges in global headwinds
6Contract Labour in ManufacturingGS-3 (Economy, Labour)Contract work hits 40.7%; policy, productivity, social and formalisation concerns
7ICJ Climate Action OpinionGS-2, GS-3Advisory: climate duties now binding, not voluntary; legal claims may arise
8Ambrosia Beetle in KeralaGS-3 (Envi, Agri)Invasive outbreak, deep crop loss, resilient management lessons for farm policy
9Kalaburagi Fort & Jama MasjidPrelims (Hist, Arch)PM focus on neglected Deccan fort and Indo-Islamic architectural heritage
10Apna Ghar for TruckersPrelims (Society, Welfare)Welfare, hygiene, digital rest stops for logistics-sector workforce
11Shaheed Udham SinghPrelims (History)Martyrdom day; legacy as revolutionary in India’s freedom movement

1. Strengthening Legal Aid Capacity in India (GS-2: Polity, DPSP)

Context & Why in News:
 Despite Article 39A mandating free legal aid, India’s system struggles due to chronic underfunding, underutilization, and governance issues, hindering access for the poor and marginalized.

Comprehensive Details & Key Facts:

  • Legal Aid Framework:

    • Institutions: NALSA (national apex), SLSAs/DLSAs (state/district), plus legal aid clinics in rural/remote areas.

    • Services: Free legal counsel, representation, court mediation, Lok Adalats, legal literacy campaigns, and para-legal volunteer (PLV) deployment.

    • Eligibility: ~80% of India’s population is legally entitled to free legal aid, including women, SC/ST, children, victims of trafficking, and those below poverty line.
  • Performance Gap:

    • Between Apr 2023–Mar 2024, services reached just 15.5 lakh (up 28% from last year), still a fraction of eligible population.

    • Per capita legal aid spending doubled in 5 years, but remains low—₹3 to ₹7.

    • <1% of justice sector budget spent on legal aid; SLSA fund utilization <50%.

  • Human Resource & Coverage Issues:

    • Paralegal volunteer numbers dropped 38% (2019–24); low/unstable honorarium, poor retention.

    • Only 1 in 127–163 villages has a legal aid clinic; only 1/3 of listed PLVs are actually deployed.

    • LADC (Legal Aid Defence Counsel) Scheme, modelled on public defender system, has uneven funding and rollout.

  • Bottlenecks:

    • Fund inflexibility restricts reallocation, SLSAs lack operational autonomy, cumbersome permissions for staffing/equipments.

    • Bureaucratic delays, digital divide, and lack of auditable impact assessment.
  • Way Forward:

    • Raise legal aid to at least 2% of justice budget, remove SLSA fund use barriers, ensure fair/standardized PLV honoraria.

    • Expand legal tech (mobile clinics, tele-law, grievance portals), build legal literacy, and ensure outcome-based monitoring .

 

2. Empowering Doctors to Drive Healthcare Innovation (GS-2: Health, GS-3: S&T)

Context & Why in News:
 Only a fraction of India’s 13 lakh doctors lead innovation in MedTech despite their invaluable insights; engineers still dominate leadership of Indian health startups.

Comprehensive Details & Key Facts:

  • <10% of MedTech startups have physician co-founders; <5% of medical colleges offer innovation or entrepreneurship courses.

  • Doctors are the closest to real healthcare challenges but don’t get time, exposure, or encouragement to innovate; risk-averse mindset due to clinical tradition.

  • Key Barriers:

    • Long hours and administrative work, little training in finance/product development, few mentors, bureaucratic regulatory hurdles, social stigma in case of failure.

  • Policy/Initiative Gaps:

    • Most innovation support (BIRAC, Atal Innovation Mission, Startup India) is accessed by tech grads, not clinicians.
  • Reforms & Solutions:

    • Integrate entrepreneurship and biodesign in medical training, foster interdisciplinary medical-engineering collaboration, set up hospital-based hubs, and promote short skill courses for doctors in medtech.

    • De-stigmatize failure, incentivize doctors by easing regulatory and funding barriers .

3. Hidden Cost of Free UPI—Fiscal Impact (GS-3: Economy)

Context & Why in News:
 Zero MDR (merchant discount rate) on UPI and RuPay, once central to digital payment adoption, is now fiscally straining the exchequer.

Comprehensive Details & Key Facts:

  • Policy:

    • Since 2020, UPI and RuPay debit MDRs waived for users/merchants. Banks/NPCI compensated via direct government subsidy (₹2,000 crore for FY25, up from ₹1,500 crore).

    • 83% of all Indian fund transfer volumes now via UPI; enabled mass financial inclusion for small traders and citizens.

  • Design & Coverage:

    • P2M incentive is capped (0.15%), covers only up to ₹2,000 per transaction for micro-merchants/small outlets.

    • 80% of payout unconditional, 20% tied to system uptime and low declines.
  • Fiscal/Structural Challenge:

    • Running UPI isn’t free—backend settlement, bank infra, network/app costs persist.

    • Continued growth risks ballooning subsidies; moving to user/merchant charges could reverse digital adoption/financial inclusion gains or push users back to cash.

  • Alternatives:

    • Possible to cross-subsidize via higher-yielding products, or banks could use MAB penalties and service fees to support payment infra, as users are resistant to new UPI charges .

4. Reforming Policing and Ethical Issues (GS-2: Governance & Ethics, GS-4)

Context & Why in News:
 Custodial deaths, archaic colonial policing structures, and lack of professionalization undermine rights and justice; recent deaths rekindle debate over institutional reform.

Comprehensive Details & Key Facts:

  • Systemic Flaws:

    • Police still governed by colonial 1861 Police Act; slow to adopt Prakash Singh SC guidelines (2006).

    • 90% staff are constables with minimal training; reports of 2–3 custodial deaths per week (687 from 2018–2023).

    • Deep social biases (Status of Policing India Report 2025): profiling, discrimination, normalization of violence.

  • Institutional Weakness:

    • Rare disciplinary and criminal convictions for misconduct.

    • Weak oversight (Police Complaint Authorities/Security Commissions not operational in most states).

    • Cumbersome, politicized transfers; poor separation of law/order and investigation.

  • Ethical Analysis:

    • Torture directly violates Kantian ethics (“ends vs means”), public service values (accountability, justice), yields unreliable confessions.

  • Way Forward:

    • Ratify the UN Convention Against Torture, pass a standalone anti-torture law (pending since Law Commission advice), instil PEACE model in training, reinforce independent oversight, and professionalize with modern recruitment/training

5. IMF World Economic Outlook—India’s Growth Outlook (GS-3: Economy)

Context & Why in News:
 IMF’s July 2025 World Economic Outlook revises India’s GDP growth to 6.4% for 2025 and 2026; India remains the world’s fastest-growing major economy.

Comprehensive Details & Key Facts:

  • Global Context:

    • World GDP growth at 3% (2025), 3.1% (2026); “slowbalisation” as trade/GDP share to fall to 53% by 2030.

    • Global inflation forecast for 2025: 4.2%.

    • Fragility due to high global public debt, risk of “fragmentation,” supply shocks and tariff hikes.

  • India-Specific Positives:

    • India’s nominal GDP to rise to $4.19 trillion (2025), expected to surpass Japan’s $4.18 trillion; pace far outstrips China (forecast: 4%).

    • Growth drivers: Rural consumption, robust domestic demand, policy reforms, low inflation.

    • India’s reforms (GST, Insolvency Code, digitalization) strengthen the macro framework even in an uncertain global environment.

    • Challenges: Weakness in job creation within manufacturing, rising contract labour, and global trade headwinds .

6. Contractualisation in Manufacturing (GS-3: Economy, Labour)

Context & Why in News:
 Rise in contract labour in formal sector industries—now 40.7% (2022–2023)—has doubled in two decades, presenting multiple challenges.

Comprehensive Details & Key Facts:

  • Trends & Productivity:

    • Contractual employment is flexible and allows quick scale-up/down in demand cycles, but CLI firms have 31% lower productivity; capital-intensive CLI fared better than labour-based.

  • Problems:

    • Widespread wage gaps and lower social security for contract workers; higher attrition makes employers reluctant to invest in training.

    • Contractors focus on cutting costs over quality—“principal–agent” dilemma.

    • IR Code, 2020 leaves gaps in effective protection; most collective bargaining is rendered weak in a fragmented workforce.

  • Policy Directions:

    • Amend IR Code to include contract workers; introduce stable, fixed-term employment and wage subsidies (PMRPY); subsidise skilling via NAPS and cluster-based models.

    • Encourage gradual formalisation for long-term productivity and social security .

7. ICJ Advisory Opinion on Climate Action (GS-2, GS-3: International Law, Environment)

Context & Why in News:
 ICJ’s July 2025 advisory: States may be held legally responsible for climate inaction—transforming climate targets from voluntary to actionable international law.

Comprehensive Details & Key Facts:

  • Key Legal Points:

    • Mitigation/adaptation now interpreted as binding international obligations, under UNFCCC, Paris, Montreal, CBD, UNCLOS, and customary law.

    • Failure to act = “internationally wrongful act,” with risk of claims for compensation, cessation, guarantees of non-repetition (“loss and damage” funding reinforced).

  • Global Duties:

    • Obligations are owed universally (erga omnes), including to future generations; developed countries retain lead responsibilities.

    • Significance for India: NDCs/policies are now legally scrutable; neighbours may invoke cross-border “harm” to claim reparations.
  • IPCC & COP Influence:

    • ICJ’s 1.5°C emphasis draws from COP-26/28 consensus but is criticized for little attention to equity/capacity differences.

    • Though not strictly binding, this opinion will shape COP30 and climate lawsuits

8. Ambrosia Beetle Outbreak in Kerala (GS-3: Environment, Impact on Agriculture)

Context & Why in News:
 Euplatypus parallelus, the ambrosia beetle, and its fungal symbionts (Fusarium) are devastating Kerala’s rubber plantations, threatening livelihoods and output.

Comprehensive Details & Key Facts:

  • Beetle is native to Central/South America, introduced to India in 2012 (first on cashew in Goa).

  • Attacks >80 broadleaf species (cashew, rubber, teak, coffee, coconut); targets stressed/dying trees by sensing ethanol.

  • Bores galleries into trunk, introduces harmful fungi; fungi deprive wood/xylem of water, causing drying, leaf drop, latex loss.

  • Fusarium fungi spread rapidly because beetles transmit spores without mycangial sacs, compounding attack.

  • Impact:

    • Major latex shortfall, tree deaths, long recovery periods, and economic/livelihood setback for small farmers.

    • Fungicides/insecticides ineffective against deep-seated fungi—requires vigilant surveillance and bio-control strategies .


9. Kalaburagi Fort & Jama Masjid (Prelims: History, Art and Culture)

Context & Why in News:
 Prime Minister highlighted neglect of Kalaburagi Fort (Karnataka)—famed for its Bara Gazi Toph (29-foot cannon) and Jama Masjid, Asia’s second-largest mosque.

Comprehensive Details & Key Facts:

  • Kalaburagi Fort: Built by Alauddin Hasan Bahman Shah (Bahmani Sultanate founder, 1347–58 CE). Fort defenses include double-walls, wide moat, and iconic Hathi Darwaza (gateway).

  • Bara Gazi Toph: One of the world’s largest cannons (five-metal alloy), symbolizing medieval military engineering.

  • Jama Masjid: Built by Muhammad Shah I, inspired by Cordoba Mosque (Spain); famous for its Persian, Moorish, and Indian blend—example of Indo-Islamic architecture.

  • Historical Value: Fort and mosque witnessed numerous historical events in Deccan polity; now part of culture, tourism, and restoration debates.

10. Apna Ghar Initiative for Truck Drivers (Prelims: Welfare, Economy)

Context & Why in News:
 ‘Apna Ghar’—government/Oil Marketing Company scheme—aims to give long-haul truckers better rest, hygiene, safety en route.

Comprehensive Details & Key Facts:

  • Chain of rest facilities with dorms (10–30 beds), eateries, self-cooking space, clean toilets/baths, purified water, all bookable via mobile app.

  • Tackles occupational hazards—driver fatigue, health, dignity, and road safety.

  • Policy push for logistics sector welfare; integrates with India’s focus on Ease of Doing Business and transport modernization.

11. Shaheed Udham Singh (Prelims: Modern Indian History)

Context & Why in News:
 Tributes paid to Shaheed Udham Singh, freedom fighter who avenged the Jallianwala Bagh massacre, on his martyrdom day (31 July).

Comprehensive Details & Key Facts:

  • Born Sunam, Punjab, 1899; orphaned young, radicalized by Jallianwala tragedy (1919).

  • Assassinated Michael O’Dwyer (former Lt. Governor of Punjab, responsible for Jallianwala) in London, 1940.

  • Tried and executed by hanging; became a symbol of India’s overseas revolutionary struggle and anti-colonial justice.

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