Schemes, Economy, and International Relations: July to September 2025
Government Schemes & Legislation
| Scheme/Bill | Details | Prelims Fact |
|---|---|---|
| Unified Pension Scheme (UPS) Launch | Effective April 1, 2025. Replaces the National Pension System (NPS) for central government employees. Assured pension: 50% of average basic pay of the last 12 months. Minimum pension: ₹10,000 per month. Employee contribution remains 10% of basic pay + DA. Government contribution increased from 14% to 18.5% | UPS vs NPS vs OPS (Old Pension Scheme). NPS was introduced in 2004. OPS was a defined-benefit scheme. NPS is a defined-contribution scheme. UPS is a hybrid |
| Digital India Act, 2025 (came into force August 2025) | Replaces the Information Technology Act, 2000. Comprehensive framework for: intermediary liability (social media platforms must remove flagged content within 24 hours), online gaming (self-regulatory body for the industry, prohibition of betting and gambling, but skill-based games permitted), AI regulation (high-risk AI systems must be registered and audited), and data localisation (critical personal data must be stored in India). Penalties: up to ₹500 crore for serious violations | IT Act, 2000 → Digital India Act, 2025. Intermediary liability. Online gaming. AI regulation |
| PM-PRANAM 2.0 | Expansion of the scheme promoting alternative fertilisers. Incentivises states to reduce chemical fertiliser consumption. States that reduce consumption by 10% receive a grant of 50% of the fertiliser subsidy saved. 16 states have signed MoUs | PM-PRANAM = Promotion of Alternate Nutrients for Agriculture Management. Launched 2023 |
| Gaganyaan: Uncrewed Test Flight Success | ISRO conducted the second uncrewed Gaganyaan test flight (TV-D2) in July 2025. The crew module splashed down safely in the Bay of Bengal. The crewed mission is scheduled for mid-2026. India will become the fourth country (after the US, Russia, and China) to send humans to space using indigenous technology | Gaganyaan. ISRO. TV-D1 (first test flight, October 2023). TV-D2 (July 2025). Crewed mission: 2026 |
Reports & Indices
| Report | Key Finding | Prelims Fact |
|---|---|---|
| Global Hunger Index 2025 | India ranked 105th out of 127 countries (2024 rank: 111). The improvement was driven by reduced child wasting and stunting rates. India's GHI score improved from 28.7 (2023) to 24.5 (2025). Still in the "serious" category | GHI. Published by Concern Worldwide and Welthungerhilfe. Four indicators: undernourishment, child stunting, child wasting, child mortality |
| Global Gender Gap Report 2025 (WEF) | India ranked 129th out of 146 countries (improved from 135th). The economic participation sub-index remains India's weakest (142nd). Political empowerment sub-index is India's strongest (65th) | GGR. WEF. Four sub-indices: economic participation, educational attainment, health and survival, political empowerment |
| State of India's Environment 2025 (CSE) | Key findings: India generated 3.5 million tonnes of e-waste (third largest after China and the US). Only 22% is formally recycled. Groundwater extraction: 61% of India's irrigation comes from groundwater. 256 of 700 districts have groundwater overexploitation | CSE = Centre for Science and Environment. NGO based in Delhi. Publishes the annual State of India's Environment report |
Economy
Q1 GDP growth (April-June 2025): 7.2%, above the RBI's projection of 7.0%. Driven by: services sector rebound (IT, hospitality, financial services), strong agricultural growth (after a normal monsoon in 2024), and election-related government spending. Manufacturing growth was moderate at 4.8%.
RBI August 2025 policy: Repo rate unchanged at 6.50%. The MPC shifted its stance from "withdrawal of accommodation" to "calibrated tightening" , a signal that rate cuts are on the horizon but not imminent. The MPC projected GDP growth of 7.2% for 2025-26 and CPI inflation of 4.5%.
Banking: The RBI released its Financial Stability Report (July 2025). GNPA ratio declined to 3.4% (March 2025), the lowest in 13 years. The capital adequacy ratio stood at 16.8%. The report flagged two risks: (a) unsecured retail lending (credit cards, personal loans) growing at 23% , the RBI had already increased risk weights on unsecured consumer credit in November 2023; (b) climate risk in banking, with the RBI preparing to conduct its first climate stress test.
GST Council: The 55th GST Council meeting (September 2025) rationalised rates on several items. Health insurance premiums (senior citizens): exempted. Online gaming: 28% rate upheld (Supreme Court had upheld the GST Council's power to levy 28% on online gaming in 2024). The Council also discussed bringing petrol and diesel under GST , no consensus.
India and the World
Forum for India-Pacific Islands Cooperation (FIPIC) Summit (Port Moresby, August 2025): PM Modi attended the third FIPIC Summit in Papua New Guinea. India announced: $500 million line of credit for renewable energy and climate adaptation projects in the Pacific Islands, free visa-on-arrival for citizens of all 14 Pacific Island countries, and a dedicated healthcare fund ($100 million) for non-communicable diseases (diabetes, cardiovascular disease) that disproportionately affect the Pacific Islands. Strategic significance: China's growing influence in the Pacific (Solomon Islands security pact, 2022) makes India's engagement with the region strategically necessary.
Ukraine Peace Summit (Geneva, July 2025): India attended the second Ukraine peace summit. India did not sign the communique. India's position: dialogue and diplomacy are the only path to peace; any peace process must involve both Russia and Ukraine; India is willing to contribute to confidence-building measures (humanitarian aid, nuclear safety). India's abstention reflects its balancing act: maintaining strategic ties with Russia while not alienating Western partners.
India-Japan 2+2 Dialogue (Tokyo, September 2025): The Defence and Foreign Ministers met. Key agreement: Japan will invest in India's North East connectivity infrastructure (road, rail, and digital connectivity). A joint statement on "free, open, and rules-based Indo-Pacific" , a coded reference to China , was issued. The India-Japan Act East Forum (AEF) was expanded to include Bangladesh and Sri Lanka as trilateral cooperation partners.