02 SEPTEMBER 2025 Current Affairs

SCO LEADERS ADOPT TIANJIN DECLARATION WHICH ‘STRONGLY’

Tianjin Declaration adopted by all 10 members:

• Strong condemnation of terrorism (incl. Pahalgam attack, Jaffer Express, Khuzdar attacks).

• Rejection of cross-border movement of terrorists; inadmissibility of using terror groups for “mercenary purposes.

• Opposition to unilateral coercive measures (e.g., U.S. tariffs) contravening UN Charter/WTO principles.

• Concern over Israel–Gaza conflict; condemnation of Israel–U.S. strikes on Iran’s nuclear facilities.

• Reiteration on inclusive Afghan government for lasting stability.

• All except India reaffirmed support for China’s Belt and Road Initiative (BRI).

China’s Role

• Xi Jinping chaired the summit; criticised “Cold War mentality” & “bullying” in global order.

• Proposed Global Governance Initiative (GGI): sovereign equality, rule of law, multilateralism, people-centered approach.

Announced:

• ¥2 billion grant this year + ¥10 billion loan to SCO Interbank Consortium.

• Push for an SCO Development Bank.

  Institutional Changes

• Partner Status merger: dialogue partner + observer = single “partner” category.

• Laos accepted as partner → SCO strength: 27 (10 members + 17 partners).

• Decision to establish SCO Development Bank.

India’s Position

• PM Modi’s address:

• Emphasised SCO’s ‘S’ = Security.

• No double standards on terrorism → “common challenge for humanity”.

• Mentioned Pahalgam terror attack (April 22, 26 killed).

• Called for coordination on terror financing, radicalisation.

• Highlighted connectivity projects: Chabahar Port, INSTC → enhance linkages with Afghanistan & Central Asia.

• Supported SCO reforms: new centres on organised crime, drug trafficking, cyber security.

• Called for reform of UN & multilateral institutions.

India–Russia Bilateral (Modi–Putin Meeting) Highlights

• Reaffirmed India–Russia “special & privileged strategic partnership”.

• Modi stressed need for ceasefire in Ukraine; Putin blamed West & NATO expansion.

• Both leaders discussed:

• Deepening cooperation across economic, financial, energy sectors.

• Regional & global issues, incl. Ukraine conflict.

• Format: personal interaction → spoke privately in vehicle for ~1 hour before official talks.

• Modi invited Putin for 23rd India–Russia annual summit later this year.

Context

• Meeting took place amid U.S. 25% penalty on Indian goods linked to India–Russia oil trade.

• Ministry of External Affairs’ statement avoided mention of oil trade / S. tariffs.

THE RISE & RISKS OF HEALTH INSURANCE IN INDIA

• Defined UHC as quality health care for all, irrespective of ability to pay. Eight decades later, India is still far from this goal, unlike several other countries.

Insurance-Led Illusion of UHC:

• Rapid growth of PMJAY (2018, Ayushman Bharat) and State Health Insurance Programmes (SHIPs).

• PMJAY + SHIPs together claim ~80% population coverage, with a combined budget of ₹28,000 crore (2023–24).

• Focused mainly on in-patient care, leaving primary and outpatient care neglected.

Structural Faultlines in Health Insurance Approach

Profit-Oriented Medicine:

• ~⅔ of PMJAY funds go to private hospitals.

• Promotes poorly regulated profit-seeking providers.

Bias towards Hospitalisation:

• Insurance encourages tertiary care over preventive/primary care.
• With ageing population (70+), risk of budget skew towards costly tertiary care.

Low Utilisation Despite High Coverage:

• Only 35% of insured hospital patients used insurance (2022–23 data).

• Awareness gaps, procedural hurdles, and private hospital discouragement reduce effective access.

Discrimination in Hospitals:

• Private hospitals prefer uninsured patients (higher charges).

• Public hospitals prefer insured patients (extra funding).

• Creates inequities and pressures for on- spot enrolment.

Provider Grievances:

• Low reimbursement rates + pending dues>₹12,000 crore under PMJAY.

• 600+ hospitals have exited scheme since inception.

Fraud and Corruption Risks:

• NHA flagged 3,200 hospitals for fraud under PMJAY.

• Irregularities: denial of treatment, overcharging, unnecessary procedures.

• Weak monitoring and poor transparency (audit reports not public).

Core Problem -Underinvestment in Public Health

• Public expenditure on health in India = 1.3% of GDP (2022) vs world average 6.1%.

• Insurance acts as a palliative, not a structural reform.

Comparative Perspective:

• Countries like Canada, Thailand use social health insurance, but with universal coverage+ non-profit focus.
•  India’s system remains profit-driven, not rights-based.

Way Forward for UHC:

• Substantial increase in public health spending.
•  Strengthening primary health care and preventive services.
•   Strict regulation of private sector.
•  Transparency and accountability in insurance schemes.
• Shift focus from insurance-driven model to public provisioning-based UHC.

NOISE POLLUTION IS RISING BUT POLICY IS FALLING SILENT

• Urban noise pollution exceeds CPCB limits, especially near schools, hospitals, and residential zones.
•  Violates constitutional promises of peace, dignity, and well-being.

Institutional & Regulatory Gaps

• National Ambient Noise Monitoring Network (2011): Intended as real-time data platform, but now functions as a passive repository.
•  Faulty sensor placement (25–30 feet high, against CPCB’s 2015 guidelines).
•  Data scattered, unenforced, politically and administratively inert.
•   Noise Pollution Rules, 2000 provide a framework, but enforcement is symbolic.

Comparative Perspective

• Europe: Noise data linked to public health policy; annual cost estimated at €100 billion by European Environment Agency.
•   Led to redesign of speed zones, zoning frameworks.
•  India: Regulatory fragmentation, poor accountability, weak institutional synergy.

Constitutional Dimensions

• Article 21: Right to life with dignity includes environmental and mental well-being.
•   Article 48A: Directive for environmental protection.
•   Supreme Court (Noise Pollution In Re, 2005; reaffirmed 2024): Excessive noise violates fundamental rights.

Health & Ecological Impact

• WHO safe limits in silent zones: 50 dB(A) day, 40 dB(A) night. Indian cities often record 65–70 dB(A) near sensitive areas.
• Noise disrupts sleep, cognition, cardiovascular health, children’s development.
• Ecological impact: 2025 University of Auckland study – urban noise disrupted common myna sleep and song patterns, impairing biodiversity communication systems.

Sociocultural & Political Dimension

• Noise pollution “invisible”: unlike smog or waste, leaves no visible residue.
•  Civic fatigue & normalization of honking, drilling, loudspeakers.
•   Lack of public outrage → political inertia.

Policy & Governance Deficits

• Fragmented roles: municipal bodies, traffic police, SPCBs work in silos.
•   Lack of National Acoustic Policy (parallel to NAAQS).
•   Poor grievance redressal mechanisms.
•   Urban expansion & logistics traffic aggravate noise crisis.

Way Forward (Reforms)

• Decentralisation: Give local bodies real-time access to NANMN data.
•  Enforcement linkage: Monitoring must trigger penalties, compliance, zoning enforcement.
•  Cultural shift: Promote “sonic empathy” through education, campaigns, driver training, community awareness.
•  Sustained behavioural change: From token “No Honking Day” to continuous civic messaging (like seatbelt adoption).
•   Urban design: Embed acoustic resilience in planning —noise barriers, green buffers, better zoning.
•  Rights-based approach: Recognise silence as essential to dignity, health, and livability.

ANOTHER CHANCE

• Directed that claims and objections to Bihar’s Special Intensive Revision (SIR) electoral roll exercise can be filed even after the deadline.

• Ensures voters wrongfully excluded from the draft rolls get a fair chance for inclusion until the last date for filing nominations.

Election Commission of India (ECI) Clarification:

• Applications submitted after September 1 will still be processed.

• Both new registrations and re-inclusions use Form 6, leading to possible data conflation.

Scale of Exclusion:

• Over 65 lakh names excluded in Bihar’s draft roll.
•  Only ~33,000 re-inclusion claims filed versus 15 lakh new voter registrations → raises doubts about awareness, accessibility, or processing of claims.

Dispute Between ECI and Political Parties:

• ECI’s stance: Parties failed to assist excluded voters.
•  Parties’ stance: Claims were filed, but Block Level Officers mishandled processing.

Supreme Court’s Additional Direction:

• Bihar State Legal Services Authority to deploy para-legal volunteers to help voters and parties.
•  Reflects concerns over data anomalies highlighted by media investigations (e.g., The Hindu) and ground reports.

Aadhaar Issue:

• Aadhaar accepted for excluded voters filing claims.
•  Logical inconsistency: Aadhaar not accepted as standalone proof for those already in draft roll.

Democratic Responsibility:

• Political parties must act beyond self-interest to safeguard universal adult suffrage.
• Electoral roll integrity is central to free and fair elections.

REWIRING THE EQUILIBRIUM

• India-China relations have always extended beyond bilateral aspects, influenced by global and regional factors.
•  History shows sharp swings—periods of cooperation and confrontation—but equilibrium and stability have been long-term goals of India’s policy.

2020 Ladakh Crisis & Repair Process

• Relations severely strained after China’s troop build-up in Eastern Ladakh and Galwan clashes (2020).
•  Breakthrough in October 2024: resolution of two friction points (Demchok, Depsang).
•   Quiet rebuilding process since then, culminating in bold announcements during Wang Yi’s August 2024 visit.

Exogenous Developments Shaping Ties

• Operation Sindoor: China’s military-intelligence support to Pakistan.
•   Pahalgam terrorist attack: strained environment.
•   US factor: Trump’s trade war with India, unpredictability in US-China ties, and Washington’s tilt towards Pakistan.
•  These pushed India and China to accelerate rapprochement despite persisting mistrust.

Strategic Signaling

• Modi’s route to Tianjin via Tokyo underlined India’s balancing act— economic and security engagement with Japan as a message to Beijing and Washington.
•  India emphasizes it won’t concede Asian leadership space to China, while keeping its own options diversified.

Economic Dimension

• Worsening trade balance: ~90% of bilateral trade is Chinese exports to India → risk of India outsourcing its manufacturing future.
•  Dependency concerns: China’s “weaponisation of dependencies” through exports, capital surplus, and FDI in strategic sectors.

  India’s deliberate choices:

•   Japanese bullet train tech instead of Chinese.
•  Indigenous 5G/6G development despite cheaper Chinese alternatives.

Panchsheel Reference

• Xi Jinping invoked Panchsheel principles during talks → symbolic trust-building gesture.
•  For India, Panchsheel is historically associated with betrayal (1962 War), creating skepticism.

Strategic Balance

• India seeks a delicate balance between short- and long- term interests, economic opportunities vs. strategic caution.
•  Partnerships with major powers must not compromise autonomy.
• Sudden US policy shifts underline the risks of over- alignment.
•  Lessons from Europe: maintained massive trade with China despite strong US alliance.

Tianjin Summit Outcomes

• Consolidated the repair process initiated at Kazan.
•   Marked stabilisation stage in India-China ties.
•  Leaders spoke of being “partners”—realistic but not idealistic.
•  Acknowledgement: All great power relations are imperfect, driven by national interests first.

WHAT PUNJAB NEEDS

• Punjab is facing one of the worst floods in decades – over 3 lakh acres submerged.
•   Major rivers in spate: Ravi, Sutlej, Beas, Ghaggar.
•   Dams like Ranjit Sagar, Pong, Bhakra breached or reached danger levels.

Causes

• Excessive Monsoon Rains
• Initially bountiful rains – good paddy prospects.
•   Sudden deluge in late August – disaster situation.

River Dynamics

• Ravi river swelled, breaking two floodgates of the Madhopur barrage (19th century construction).
• Himalayan inflows + dam overflows from Himachal Pradesh aggravated floods.

Institutional Lapses

• Flood-preparedness meeting delayed from Feb – June (due to Delhi elections, Ludhiana bypolls).
•  Political sparring with Haryana & Bhakra Beas Management Board (BBMB) over water release.
•  Chronic inefficiencies in the floods & irrigation department.

Impacts

• Human Impact – Deaths, large-scale displacement, health risks.
• Agriculture -Paddy crop devastation in a key food- producing state.

• Infrastructure – Barrage gates collapse, dams under stress.

• Political Fallout – Tensions between state and Centre, Centre’s silence deepening resentment.

Relief & Response

• Civil society initiatives → food, medicines.
•   State government → CM Bhagwant Mann seeking ₹60,000 crore from Centre (claimed withheld funds).
•  Neighbouring Haryana → CM Nayab Singh Saini promising aid.
•  Centre’s role questioned → lack of solidarity message noted.

Long-Term Concerns

• Recurring floods (2019, 2023, 2025) → systemic governance failures.
•  Food security implications → Punjab as the backbone of India’s grain production.
•  Climate change angle → Extreme rainfall events becoming frequent.
•  Need for structural reforms in dam management, interstate coordination, disaster preparedness.

UNDERSTANDING THE HIGH APRIL-JUNE GDP GROWTH

•   Real GDP growth: 7.8% (highest in 5 quarters).
•   Nominal GDP growth: 8.8% (lowest in 5 quarters).
•   Previous quarter (Jan–Mar 2025): 7.4% real GDP growth.

Inflation Factor

• GDP growth rate depends on:

• Magnitude of economic.

• Rate of price increase (inflation).

•  Real GDP = adjusted for inflation.

• Nominal GDP = not adjusted for inflation.

• WPI inflation (Q1 FY25): < 3% (lowest since Q1 FY24).

• CPI inflation (Q1 FY25): 7%, lowest in 6 years.

GDP Deflator

• Deflator = measure used to convert nominal GDP to real GDP.

• Q1 FY25 GDP deflator = 0.9% → unusually low, boosting real GDP artificially.

• Narrower difference between real & nominal GDP explained by this.

Why Deflator Matters

• MoSPI uses WPI-heavy deflator → may understate/overstate real growth.

Example:

• Services sector real growth: 9.3%, but after adjustment expanded 11.3% (due to deflator ~1.9%).

• Economists argue services GDP deflator is aligned more with WPI than CPI, giving misleading results.

Single vs Double Deflation.

• Current method: single deflator used for both input & output.

• Problem:

• When WPI falls faster than CPI → real growth gets exaggerated.

• Agriculture & mining use different deflators, but most sectors rely on single deflation.

Forward Outlook

• June 2025: WPI inflation at -0.13% (first negative in 20 months).

• July 2025: WPI inflation 1.55% (8-year low).

• CPI forecast (RBI): 3.1% (2025–26), lower than 2024–25. average (3.25%).

• Implication:

• GDP deflator may remain weak.

• Disconnect between real GDP and high-frequency data may persist.