Daily Current Affairs 02-June-2025


INDIA AS THE WORLD’S FOURTH LARGEST ECONOMY

TOPIC: (GS3) ECONOMY: THE HINDU

Recent discussions about India’s position as the world’s fourth-largest economy by 2025 were sparked by the IMF’s 2024 GDP estimates and projections. The debate has also led to political claims linking economic growth to government leadership.

India’s GDP Ranking

India’s GDP Ranking

  • The IMF projects India’s GDP for 2025 at around $4,187 billion, slightly ahead of Japan’s estimated $4,186 billion.
  • If these projections hold, India would rank fourth globally, after the USA, China, and Germany.
  • Politicians have highlighted this ranking as a sign of India’s rapid growth and potential to become the third-largest economy by 2028.

Limitations of GDP

  • GDP shows the total economic output of a country but does not reflect:
    • Living conditions
    • Health and education levels
    • Income inequality
  • It also overlooks unpaid work like household chores and care work, mostly done by women.
  • Despite these flaws, GDP remains the most widely used economic indicator worldwide.

Different Methods of GDP Comparison

Market Exchange Rates

  • This method converts GDP to US dollars using current exchange rates.
  • According to this approach, India ranked fifth since 2021 and is projected to become the fourth-largest economy in 2025.

Purchasing Power Parity (PPP)

  • PPP adjusts for differences in prices across countries, considering the cost of a similar “basket of goods.”
  • Using PPP, India became the world’s third-largest economy in 2009 and has maintained that rank since then.
  • PPP highlights that things like rent, food, and services often cost less in India than in richer countries.

Caution with PPP

  • PPP-based GDP can overstate the size of developing economies since wages and prices are often lower.
  • For example, many casual workers in India earn below minimum wage, and informal sectors have underemployment.
  • Claims that India’s GDP is already very close to that of the US can be misleading.

Per Capita GDP

  • India’s GDP may look big overall, but its per capita GDP was just $2,711 in 2024.
  • This ranks India 144th in per capita income terms (market rates) and 127th in PPP terms.
  • Countries like Vietnam and Bhutan have higher per capita GDP despite being smaller economies.

What should be considered for measuring development?

  • Human Development Index (HDI): Includes education, life expectancy, and income.
  • Sustainable Development Goals (SDGs): Focus on social, economic, and environmental aspects.
  • Multidimensional Poverty Index (MPI): Looks beyond income to living standards and access to services.

Why is GDP/GNI not a complete measure of development?

Gross Domestic Product (GDP) and Gross National Income (GNI) indicate the total economic output or income of a country. Though important, they have significant limitations as measures of overall development.

Limitations of GDP/GNI as a Development Indicator:

  • Does not reflect quality of life:
    GDP/GNI only measures economic transactions and ignores social factors like health, education, and living standards, which are crucial for real development.
  • Ignores income distribution:
    High GDP/GNI may coexist with wide income inequality. If wealth is concentrated in the hands of a few, most people may not experience better living conditions.
  • Excludes non-monetary activities:
    Many valuable activities like unpaid household work, volunteer services, and subsistence farming are not counted, even though they contribute to well-being.
  • Environmental degradation is overlooked:
    GDP growth may come at the cost of natural resources and environment, harming sustainability and future development.
  • Does not account for informal economy:
    In developing countries, a large part of economic activity is informal and unrecorded, so GDP/GNI underestimates actual economic welfare.

Conclusion

India’s large GDP size does not directly translate to higher living standards. For a clearer picture of development, indicators like health, education, and income distribution are better measures of real progress.

HOW THE TECHNOLOGY INDUSTRY IS TRYING TO MEET ITS CLIMATE GOALS

TOPIC: (GS3) ENVIRONMENT: THE HINDU

A recent study by researchers from Microsoft and WSP Global, published in Nature, found that advanced cooling technologies can significantly reduce emissions, energy use, and water consumption in data centres.

What is the issue

  • Data centres, which support modern computing and internet services, generate a lot of heat during operations.
  • Keeping them cool is essential for their performance but also consumes substantial energy and water. As the ICT sector grows, finding sustainable cooling methods is crucial to cut emissions and water use.

Why Cooling is Important

  • The ICT industry aims to cut its emissions by 42% by 2030 to help meet global climate targets
  • Data centres are like large computer warehouses that run non-stop, producing heat.
  • Without proper cooling, chips can overheat and fail, similar to a car engine seizing.
  • Effective cooling ensures longer hardware life, consistent performance, and fewer breakdowns.

Challenges with Current Cooling

  • Conventional air cooling uses fans, which consume nearly as much electricity as the servers themselves.
  • As chips get smaller and more powerful, they produce more heat, requiring even more cooling.
  • Air cooling also uses a lot of water and emits significant greenhouse gases.

New Cooling Technologies

  • Cold Plate Cooling: Works like an ice pack on a feverish person but for computer chips. Uses small metal plates with coolant-filled channels placed on top of hot components.
  • Immersion Cooling: Involves submerging computer parts in a special liquid that absorbs heat. The fluid can either stay liquid (single-phase) or boil and re-condense (two-phase).
  • Environmental Benefits
  • Life cycle assessments show:
    • Cold plate and immersion cooling reduce emissions by 15-21%.
    • Energy consumption drops by 15-20%.
    • Water use is reduced by 31-52%.
  • If renewable energy is also used, emissions can drop by 85-90%.

Challenges and Considerations

  • Some coolant fluids may be harmful if not properly managed.
  • New designs can be complicated and slow to implement.
  • If the power supply is from fossil fuels, the net benefit could be reduced.

WHAT ARE DATA CENTERS?


Data centers are large facilities that house computer servers and network equipment, which store, process, and distribute massive amounts of digital data.

  • They support cloud computing, internet services, online storage, and many business operations.

Why do Data Centers Generate Heat?
Data centers generate a lot of heat because:

  • Computers work hard: Servers, processors, and memory chips handle large amounts of data processing, which consumes electricity and releases heat as a byproduct.
  • High density: Data centers pack thousands of servers tightly together to save space, concentrating the heat.
  • Continuous operation: Servers run 24/7, constantly generating heat without breaks.

Conclusion

Advanced cooling methods like cold plate and immersion cooling can help the ICT industry lower its environmental impact. However, holistic approaches—like using renewable energy and evaluating trade-offs—are essential for real sustainability gains.

HUMAN-MADE HUNGER CRISIS IN GAZA

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

A senior official from the UNRWA explained the severe humanitarian crisis in Gaza caused by the ongoing conflict and blockade, which has left thousands of Palestinians on the brink of famine. Despite a temporary ceasefire earlier this year, aid deliveries have been restricted, leading to severe food insecurity and a “human-made hunger crisis.”

human-made hunger crisis

Causes of the Crisis

  • Prolonged Blockade: Israel imposed a near-total blockade on Gaza from March 2 to May, stopping almost all aid.
  • Collapse of Ceasefire: The ceasefire between Hamas and Israel (January 19 – March 18) allowed some aid, but once it ended, aid agencies were forced to ration supplies.
  • Legal Concerns: According to international law, starving civilians cannot be used as a military strategy (Geneva Conventions, Additional Protocol I).

Impact on Civilians

  • Extreme Food Shortages: Families are sharing small amounts of bread just to survive.
  • Risk of Famine: Hunger is worsening every day, with children and vulnerable populations most affected.
  • Limited Aid: The World Food Programme said the 665 trucks that entered recently are not nearly enough—Gaza needs at least 500-600 trucks of aid daily.

Challenges for Aid Agencies

  • Unsafe Conditions: Gaza is the deadliest place for aid workers—over 400 have been killed, including more than 300 from UNRWA.
  • Restricted Operations: New laws passed by Israel have blocked UNRWA from operating in East Jerusalem and cut off communication with Israeli authorities, making coordination harder.
  • Access Issues: Aid agencies refuse to work with the Gaza Humanitarian Foundation (GHF) because its aid distribution setup excludes vulnerable groups like people with disabilities.

UNRWA’s Efforts in Gaza

  • Main Humanitarian Agency: UNRWA is the largest agency in Gaza with around 12,000 staff and crucial facilities like warehouses, health centers, and mobile clinics.
  • Educational Support: Provides basic education, psychological support, and learning opportunities for over 20,000 children.
  • Sanitation Services: Maintains clean refugee camps through waste management and hygiene services.

Allegations and Neutrality

  • Concerns of Bias: UNRWA has mechanisms to investigate staff accused of political bias or links to armed groups.
  • Accountability: Staff found violating neutrality are suspended and investigated by the UN’s Office of Internal Oversight Services.

India’s Role

  • India and other countries supporting multilateralism should push for adherence to international laws and UN resolutions.
  • Supporting aid efforts and advocating for safe humanitarian access can help ease the crisis.

GAZA STRIP CONFLICT:

  • Territorial Dispute and Blockade:
    The Gaza Strip has been a focal point of conflict between Israel and Palestinian groups, especially Hamas, due to historical territorial disputes, Israeli occupation, and an ongoing blockade that restricts the movement of people and goods.
  • Recurring Violence:
    Frequent escalations include rocket attacks from Gaza targeting Israel and retaliatory airstrikes by Israel, causing civilian casualties and damage on both sides.
  • Humanitarian Crisis:
    The conflict has resulted in a severe humanitarian crisis, with shortages of food, medicine, and basic services, and large numbers of displaced people living under harsh conditions.

Conclusion

The humanitarian situation in Gaza is dire, with aid agencies facing enormous challenges due to blockade, violence, and administrative restrictions. A coordinated international effort is needed to ensure safe and sufficient humanitarian aid reaches those who need it most.

Prelims Practice Question:

Q. Consider the following statements about the Mediterranean Sea:

  1. It is a landlocked sea connected to the Atlantic Ocean by the Strait of Gibraltar.
  2. It lies between Europe, Asia, and Africa.
  3. The Suez Canal connects the Mediterranean Sea to the Red Sea.
  4. It is the largest sea in the world by surface area.

Which of the statements given above are correct?

  1. 1, 2 and 3 only
  2. 2 and 4 only
  3. 1 and 4 only
  4. All of the above

Answer: A

Explanation:

  • The Mediterranean Sea is almost landlocked and connects to the Atlantic through the Strait of Gibraltar.
  • It lies between three continents: Europe, Asia, and Africa.
  • The Suez Canal connects it to the Red Sea. It is not the largest sea by surface area.

HOW THE NDA OFFERS WOMEN A PATH TO BECOME SERVICE CHIEFS IN THE FUTURE

TOPIC: (GS2) INDIAN POLITY: THE HINDU

For the first time in history, 17 women cadets graduated from the National Defence Academy (NDA) in June 2025, marking a significant step toward gender equality in the Indian Armed Forces and opening the possibility for women to reach top military leadership roles in the future.

How NDA Paves the Way for Women to Become Service Chiefs

Historical Background of Women in Indian Armed Forces

  • Women’s formal entry into the Indian military began in 1888 with the Military Nursing Service.
  • Regular commissions for women doctors in the Army Medical Corps started in 1958.
  • Non-medical roles for women began only in 1992 through the Women Special Entry Scheme (WSES) but limited to short service commissions (SSC) and non-combat roles.
  • Permanent Commission (PC) for women was granted first in 2008 for select departments, later expanded in 2019 but without command opportunities.

Landmark Supreme Court Intervention

  • The Supreme Court ruled in 2020 that women officers should be granted permanent commissions and command roles without gender discrimination.
  • In 2021, the court directed the NDA to admit women cadets, enabling them to train alongside men from 2022 onwards.

NDA’s Approach to Women Cadets

  • The NDA admitted its first batch of women cadets in 2022 and has enrolled 126 women cadets till its 153rd batch.
  • Training is gender-neutral with minimal curriculum changes, and women cadets train alongside men to prepare for future command roles.
  • Initially, women were housed separately but are now fully integrated into the 18 NDA squadrons, training and living like their male peers.

Significance of Women Graduating from NDA

  • Graduation marks a historic milestone in the Indian Armed Forces’ journey toward gender equality.
  • Women cadets now have access to early career training, leadership development, and command exposure essential for long-term military careers.
  • This opens the path for women to serve 35-40 years, a career length necessary to become service chiefs.

Challenges and the Way Forward

  • Some combat arms and streams still restrict women’s participation, requiring policy changes.
  • The armed forces need to foster a cultural shift to normalize women in leadership roles.
  • Infrastructure improvements for maternity, childcare, and spousal postings are needed to support women officers’ career growth.
  • Promotion boards and evaluation criteria must adapt to ensure fair opportunities for women in command and leadership roles.

Conclusion

The graduation of women from NDA is a landmark step, offering them equal opportunities to build long-term careers and aspire to top military leadership, but continued reforms and cultural change remain crucial for fully realizing this vision.

UNIVERSITIES CHALLENGES REGARDING AUTONOMY

TOPIC: (GS2) GOVERNANCE: THE HINDU

Universities in both India and the U.S. are facing increased pressure from political and bureaucratic forces, threatening their academic freedom. Harvard University is facing funding cuts and threats to its autonomy under the Trump administration (since 2025), undermining higher education institutions.

The Growing Threat to Autonomy

  • In the U.S., Harvard is facing $3.2 billion in frozen grants and potential revocation of its tax-exempt status. The aim is to pressure the university to change policies on admissions, protests, and diversity programs.
  • In India, academics have been steadily losing control over their institutions to bureaucrats in education ministries and the University Grants Commission. Faculty face challenges in teaching and research with little institutional support.

The Importance of Academic Autonomy

  • Autonomy allows universities to:
    • Anticipate and address emerging social issues (e.g., AI, social media, fake news).
    • Challenge existing ideas and promote critical thinking.
    • Develop independent academic perspectives, leading to original research.
  • Historical examples show that challenging orthodoxy leads to societal progress (e.g., Galileo’s challenge to the Church).
  • Academic freedom also fosters robust decision-making by encouraging dissent and debate.

Autonomy vs. Political Control

  • Governments often view universities as anti-establishment because they promote new ideas. Rulers prefer universities to support their agenda and reinforce the status quo.
  • Authoritarian regimes curb university autonomy to limit dissent and enforce their ideology.
  • In the modern context, digital media and social divides are used to spread simplified narratives that undermine academic independence.

Funding and the Erosion of Autonomy

  • Education and research need significant funds, often requiring government support.
  • Even wealthy private universities like Harvard rely on government grants. When funding is tied to conditions, it can erode autonomy.
  • In India, public funding has decreased since 1991, giving the government more control over universities by appointing compliant leadership and reducing academic freedom.

Conclusion

Universities need autonomy to fulfil their role of generating socially relevant knowledge and challenging outdated ideas. Threats to autonomy through funding cuts, bureaucratic control, and ideological pressure undermine their ability to serve society.

VALLEY OF FLOWERS

TOPIC: (GS1) GEOGRAPHY: INDIAN EXPRESS

TOPIC: (GS1) GEOGRAPHY: INDIAN EXPRESS

The Valley of Flowers in Uttarakhand opened for tourists on June 1, 2025, with 62 visitors registered on the first day. The valley will remain open to tourists from June to September, closing in October due to harsh winter conditions.

VALLEY OF FLOWERS

Location and Significance

  • The Valley of Flowers, situated in Chamoli district, Uttarakhand, is a vibrant alpine meadow renowned for its rich biodiversity.
  • It is part of the Nanda Devi Biosphere Reserve and has been recognized as a UNESCO World Heritage Site.
  • Spans an area of about 87 sq km within the Nanda Devi Biosphere Reserve.
  • Nanda Devi, the second-highest peak in India, is considered sacred by locals.
  • The area forms a unique transition zone between the Zanskar and Great Himalaya ranges.

Biodiversity

  • Hosts a wide range of flowers including orchids, poppies, primulas, marigolds, daisies, and anemones.
  • Home to medicinal herbs and religious flowers like the brahmakamal, offered to the goddess Nanda Devi.
  • The region features diverse habitats such as alpine meadows, waterfalls, streams, and forests.

Wildlife

  • The valley is inhabited by rare species like the gray langur, flying squirrel, Himalayan weasel, black bear, red fox, lime butterfly, and even snow leopards.

Historical Background

  • Explored by British mountaineers Frank S. Smythe, Eric Shipton, and R.L. Holdsworth in 1931.
  • Smythe popularized the valley through his 1938 book “Valley of Flowers.”
  • Tourism was restricted after the 1962 India-China war but was regulated again from 1974.
  • Declared a national park in 1982; part of the Nanda Devi Biosphere Reserve since 1988.

Conclusion

The Valley of Flowers is a stunning natural treasure that blends beauty, biodiversity, and cultural heritage, offering an unforgettable experience for nature lovers and trekkers alike.

Prelims Practice Question:

Q. Consider the following statements regarding Valley of Flowers National Park:

  1. It is located in the state of Himachal Pradesh.
  2. It is a UNESCO World Heritage Site.
  3. It is famous for its meadows of endemic alpine flowers.

Which of the statements given above is/are correct?

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer: B

Explanation:

  • Valley of Flowers National Park is located in Chamoli district of Uttarakhand, not Himachal Pradesh.
  • It lies in the Western Himalayas and is part of the Nanda Devi Biosphere Reserve.
  • The Valley of Flowers National Park, along with Nanda Devi National Park, was declared a UNESCO World Heritage Site in 2005 for its exceptional natural beauty and biodiversity.
  • The park is globally renowned for its vibrant alpine meadows, which bloom during the monsoon with hundreds of species of endemic flowers like blue poppy, cobra lily, and Brahma Kamal.
  • It also hosts rare and endangered animals, including the snow leopard and Asiatic black bear.

ESTIMATES OF INDIA’S GDP GROWTH

TOPIC: (GS3) ECONOMY: INDIAN EXPRESS

The Ministry of Statistics and Programme Implementation (MoSPI) recently released provisional estimates of India’s GDP growth for the financial year 2024-25, showing key trends in economic growth and sectoral performance. These estimates give insights into the current state of India’s economy and its challenges.

India’s Provisional GDP Estimates 2024-25

How is Economic Growth Measured?

  • Gross Domestic Product (GDP): Measures total expenditure in the economy, including spending by individuals, businesses, and government.
  • Gross Value Added (GVA): Measures the value created by each sector by calculating income at each production stage.
  • Relation: GDP = GVA + Taxes on products – Subsidies on products.
  • Nominal vs Real: Nominal GDP is at current prices; real GDP adjusts for inflation, reflecting actual growth in goods and services.

Why are the Estimates Provisional?

  • GDP data is released in stages and gets revised as more information becomes available.
  • Estimates move from First Advance Estimates to Second Advance Estimates, then Provisional Estimates, followed by revisions over two years for accuracy.

Key Highlights from FY 2024-25 Data

Nominal GDP Growth:

  • Reached ₹330.7 trillion by March 2025, up 9.8% from FY24.
  • Converted to US dollars, India’s economy size is $3.87 trillion.
  • This growth rate is the third slowest since 2014 and indicates slowing momentum.

Real GDP Growth:

    • Increased by 6.5% in FY25, down from 9.2% in FY24.
    • Reflects actual increase in production after adjusting for inflation.
    • Growth rate has been slowing since 2019, now just above 5% CAGR.

Sector-wise Performance (GVA):

    • Agriculture and allied activities grew at about 4.72% CAGR since 2019.
    • Manufacturing grew slower at around 4.04%, which is concerning.
    • Services sector continues to contribute significantly but growth has slowed.

Manufacturing Slowdown:

    • Slower growth in manufacturing partly explains urban unemployment and the shift of labor back to rural areas.
    • Manufacturing is a critical area targeted by government initiatives like “Make in India,” but remains a challenge.

Conclusion:

The provisional GDP figures indicate that India’s economy continues to grow but at a slower pace, especially in manufacturing. The data shows a need for policy focus on reviving industrial growth to maintain sustainable economic momentum.

NEOLITHIC AGE

TOPIC: (GS1) HISTORY: INDIAN EXPRESS

The Archaeological Survey of India recently uncovered one of the earliest rock grooves in Kanniyakumari district, dating back to the Neolithic Age. This discovery gives insight into how people during that time sharpened their tools and weapons.

What is the Neolithic Age?

  • Also called the New Stone Age, it marks the final phase of prehistoric human cultural development.
  • It is known for the beginning of settled life, where people started farming and domesticating animals instead of only hunting and gathering.
  • This period falls within the Holocene Epoch, covering roughly the last 11,700 years.
  • The Neolithic Age began around 10,000 BCE, after the Paleolithic (Old Stone Age) and before the Bronze Age.

Key Features of the Neolithic Age

  • Use of polished or ground stone tools rather than chipped stones.
  • Dependence on farming and domesticated animals for food.
  • Formation of permanent villages with houses made from mud and reeds, in rectangular or circular shapes.
  • Development of crafts such as pottery and weaving.
  • First known production of alcohol.
  • Early architecture appeared, including decoration of homes.
  • Burials of important people included decorated pottery and carved objects, indicating beliefs in an afterlife and the rise of social classes.

Impact of the Neolithic Revolution

  • Led to permanent settlements and the growth of agriculture-based communities.
  • Created a foundation for the later Bronze and Iron Ages, which introduced metal tools and weapons.
  • Helped in the rise of civilizations through advances in farming, warfare, and trade.

End of the Neolithic Age

  • The introduction of copper metallurgy marked the beginning of the Bronze Age or Chalcolithic period.
  • Bronze tools replaced stone tools, ending the Stone Age.

Important Neolithic Sites in India:

Neolithic Sites of India

Prelims Practice Question:

Q. Consider the following statements about the Neolithic Age:

  1. It was the age of polished stone tools.
  2. It was marked by the beginning of metal tools.
  3. Domestication of animals and cultivation of crops began during this period.

Which of the statements given above is/are correct?

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer: C

Explanation: The Neolithic Age is characterized by polished stone tools and the start of farming and animal domestication. Metal tools began in the later Bronze Age, not Neolithic.

The post Daily Current Affairs 02-June-2025 first appeared on Ekam IAS Academy.



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