24 May 2025

• Economy: The Reserve Bank of India cut the repo rate by 25 basis points to 5.75 per cent, third consecutive cut in the easing cycle.
• International: India and the European Union signed the Strategic Partnership on Digital Connectivity linking submarine cable policy.
• Science: India's first quantum-secured satellite-ground communication link was demonstrated by ISRO and C-DOT jointly.
• Environment: Illegal sand mining continues to threaten 27 of India's 30 major rivers, per CAG audit report.
• Polity: Supreme Court issued guidelines on the use of Aarogya Setu data limiting its use to public health purposes only.

GS area: Economy, Monetary Policy, RBI

The Reserve Bank of India's Monetary Policy Committee (MPC) reduced the repo rate for the third consecutive time.

• Decision: Repo rate cut by 25 bps to 5.75 per cent. Stance: "Accommodative."
• MPC composition: 6 members. 3 RBI officials (Governor as chair, Deputy Governor, Executive Director); 3 external members appointed by the Central Government for 4-year terms.
• Inflation context: CPI inflation softened to 3.16 per cent in April 2025 (below the 4 per cent target). Benign food prices and lower fuel costs drove the softening.
• Growth concern: GDP growth in FY25 slowed to 6.5 per cent. The RBI lowered the FY26 growth projection to 6.7 per cent, citing global trade uncertainty from US tariffs.
• Transmission challenge: Past rate cuts have not fully transmitted to bank lending rates because MCLR (Marginal Cost of Funds-Based Lending Rate) adjustment is slow.
• Reverse Repo Rate: Remains 25 bps below repo rate (5.50 per cent).

Static linkage: Monetary policy, MPC, inflation targeting, RBI.

GS area: International Relations, Technology, Governance

India and the European Union formalised a strategic partnership on digital infrastructure and submarine cable policy.

• Context: India is connected to the global internet through 17 undersea cable systems landing at Mumbai, Chennai, Kochi, Trivandrum and Tuticorin.
• Partnership elements: Joint investment in subsea cable routes; alignment of cable security standards; interoperability of digital public infrastructure (DPI) frameworks.
• EU's Global Gateway: EU's $300 billion connectivity initiative. India is a key partner for the Indo-Pacific connectivity corridor.
• India Stack relevance: UPI, DigiLocker and Aadhaar are offered as DPI templates to EU digital strategy.
• Strategic significance: Subsea cables carry 95 per cent of global internet traffic. Control over cable landing stations and repair ships is a critical national security concern.
• BRICS context: India ensures its digital partnerships span both Western (EU, US) and non-Western (Russia, China via BRICS) frameworks.

Static linkage: Digital infrastructure, bilateral diplomacy, submarine cables, data sovereignty.

GS area: Environment, Governance, Regulation

A CAG audit found illegal sand mining threatening 27 of India's 30 major rivers.

• Sand as a critical mineral: River sand is the most extracted solid material globally. Essential for construction. India uses approximately 700-750 million tonnes annually.
• Legal framework: Mines and Minerals (Development and Regulation) Act, 1957 (as amended 2021). Sand is classified as a "Minor Mineral" under state authority.
• Sustainable Sand Mining Management Guidelines, 2016 and 2020: MoEFCC guidelines requiring Environmental Impact Assessments for sand mining above certain scales.
• Environmental impacts: Channel deepening, bank erosion, saltwater intrusion in coastal rivers, loss of riverbed biodiversity and groundwater recharge disruption.
• Governance gap: Sand mining is a State List subject. Monitoring is weak. Many states lack functional Sand Mining Management Plans.
• Key rivers affected: Yamuna, Ganga, Mahanadi, Brahmani, Krishna and Godavari.

Static linkage: Environmental regulation, mining law, river management, federalism.

GS area: Science and Technology, Space

ISRO and C-DOT demonstrated India's first quantum-secured satellite-to-ground communication link.

• Technology: Quantum Key Distribution (QKD). Uses quantum mechanics (photons in superposition states) to generate and transmit cryptographic keys. Any eavesdropping disturbs the quantum state and is detectable.
• Demo details: A QKD link was established between a satellite (using a retroreflector) and two ground stations 300 km apart. Information-theoretically secure encryption.
• C-DOT: Centre for Development of Telematics. India's premier telecom R&D centre under the Department of Telecommunications.
• Significance: QKD is considered hack-proof even against quantum computers. India's quantum communication demonstration positions it alongside China and the EU in quantum-secured communications.
• National Quantum Mission: Launched 2023. Rs 6,000 crore over 6 years. Targets include quantum computers, QKD networks and quantum sensors.

Static linkage: Quantum technology, ISRO, National Quantum Mission, cybersecurity.

GS area: Polity, Digital Rights, Governance

The Supreme Court issued guidelines limiting Aarogya Setu data use to public health purposes.

• Aarogya Setu: Contact tracing app launched April 2020 during COVID-19. Developed by the National Informatics Centre (NIC) under MeitY. Bluetooth-based proximity detection.
• Data concern: The app collected location and health status data of over 200 million users. Civil society raised concerns about surveillance creep.
• SC guidelines: Aarogya Setu data must be used only for public health monitoring and disease containment. Data must be deleted after 180 days of deactivation. Cannot be shared with law enforcement agencies without explicit legal authorisation.
• DPDP Act 2023 framework: Digital Personal Data Protection Act classifies health data as "sensitive personal data" requiring stricter consent mechanisms.
• Right to Privacy: Puttaswamy judgment (2017) recognised privacy as a fundamental right under Article 21.

Static linkage: Digital rights, DPDP Act, right to privacy, public health.

• Commonwealth Day (24 May): Queen Victoria's birthday. India is a founding member of the Commonwealth of Nations. India has 56 member nations. The Harare Declaration (1991) introduced democratic governance requirements.
• FATF grey list removal: India successfully exited the Financial Action Task Force (FATF) grey list in 2024. Pakistan remains on the grey list due to AML/CFT (Anti-Money Laundering/Counter-Terrorism Financing) deficiencies.
• GAIL's green hydrogen plant: GAIL commissioned India's largest green hydrogen production plant at Vijaipur, Madhya Pradesh. 10 MW electrolyser.