UPSC Daily Current Affairs 2 July 2025

The 2 July 2025 UPSC current affairs cover vital topics including India's new Employment Linked Incentive (ELI) and Research Development and Innovation (RDI) schemes, INS Udaygiri at RIMPAC 2025, Japan's GOSAT-GW satellite, PM's South-South cooperation tour, RailOne app launch, Hyderabad pharma accident, and India's softening bond yield outlook.

Employment Linked Incentive (ELI) Scheme & Research Development and Innovation (RDI) Scheme Launched

Category: Economy / Governance

Why in the News?

The Union Cabinet approved two new schemes: the Employment Linked Incentive (ELI) Scheme and the Research Development and Innovation (RDI) Scheme to boost job creation and promote R&D-led manufacturing in India.

About the Employment Linked Incentive (ELI) Scheme

Aspect	Details
Objective	To incentivize industries for generating formal employment
Focus Sectors	Textiles, Electronics, Pharma, Auto Components, Green Energy
Incentive Type	Direct financial benefits to companies based on incremental employment
Duration	Jobs created between August 1, 2025 and July 31, 2027
Coverage	Both MSMEs and Large Industries

Key Conditions

Companies must show net job creation over a base year
Preference for jobs with EPFO/ESIC coverage

About the Research Development and Innovation (RDI) Scheme

R&D Grants for Industries
Support for setting up Centre of Excellences (CoEs)
Technology licensing & transfer support

Aspect	Details
Objective	To strengthen domestic R&D ecosystem in manufacturing The scheme aims to provide long-term financing or refinancing at low or nil interest rates to spur private sector investment in R&D, especially in sunrise and strategic sectors such as semiconductors, green hydrogen, EV batteries, pharmaceuticals, quantum computing, robotics, biotechnology, and AI
Financial Outlay	₹1 lakh crore (₹100,000 crore)
	Major Components
Target Sectors	Semiconductors, Green Hydrogen, EV batteries, Pharmaceuticals
Implementation Agency	The scheme is implemented under the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, with the Department of Science and Technology (DST) as the nodal department

Significance

Issue	Explanation
Job Creation	Aims to reduce youth unemployment and boost formal sector employment
R&D Ecosystem	Addresses India's low Gross Expenditure on R&D (GERD)
Make in India Push	Encourages domestic manufacturing & reduces import dependence
Global Competitiveness	Aligns with goals under National Manufacturing Policy

Challenges with Past Incentive Schemes

Challenge	Example
Limited R&D Spending	India's GERD is just ~0.7% of GDP (vs 2.1% global avg)
Jobless Growth	PLIs focused more on capex, less on employment
MSME Exclusion	Previous schemes catered more to large players

Expected Mains Practice Question

Q. Critically examine how the newly launched Employment Linked Incentive (ELI) and Research Development and Innovation (RDI) schemes can address India's twin challenges of unemployment and low R&D spending. (250 words)

INS Udaygiri Participates in RIMPAC 2025

Category: Defence / International Relations

Why in the News?

The Indian Navy's INS Udaygiri joined the world's largest naval exercise - Rim of the Pacific (RIMPAC) 2025, held off the coast of Hawaii, USA.

About INS Udaygiri

Aspect	Details
Type	Nilgiri - class stealth frigate
Commissioned	May 2024
Features	Advanced sonar, radar system, BrahMos missile
Indigenous Content	Over 75%, under Make in India

About RIMPAC

Aspect	Details
Full Form	Rim of the Pacific Exercise
Organizer	United States Navy
Frequency	Biennial
Participants (2025)	29 Nations, 40 ships, 5 submarines, 150+ aircraft, 25,000 personnel
India's Participation	Since 2014

Significance for India

Aspect	Explanation
Strategic Signalling	Demonstrates India's growing naval presence in Indo-Pacific
Interoperability	Improves coordination with QUAD and Western navies
Defence Diplomacy	Builds India's stature as a regional security provider

Mains Practice Question

Q. How does India's participation in multilateral naval exercises like RIMPAC contribute to its maritime strategic objectives in the Indo-Pacific region? (150 words)

Japan Launches GOSAT-GW Satellite for Greenhouse Gas Monitoring

Category: Environment / Science & Tech

Why in the News?

Japan launched the GOSAT-GW (Greenhouse gases Observing Satellite - Global Warming) from Tanegashima Space Centre, enhancing global GHG monitoring.

About GOSAT-GW

Aspect	Details
Purpose	Monitor CO₂, methane, water cycles
Orbit	Sun-synchronous orbit
Instruments - Greenhouse Gas Sensor - Microwave radiometer for water cycle data
Partners	Japan Aerospace Exploration Agency (JAXA), Japan's Environment Ministry

Significance

Issue	Explanation
Climate Accountability	Helps track nations' emission pledges under Paris Agreement
Global Collaboration	Open data access for global researchers
Disaster Management	Tracks water vapor and precipitation anomalies

Similar Indian Initiatives

Satellite	Purpose
INSAT-3DR	Weather monitoring
Megha-Tropiques	Tropical rainfall and climate research
ISRO's future plans	NISAR (with NASA) for climate data

Mains Practice Question

Q. Assess the role of Earth Observation satellites in enhancing global efforts for climate change mitigation and disaster preparedness. (250 words)

Here's the continuation with article-style coverage for the remaining topics from July 2, 2025 Current Affairs:

PM's 5-Nation Tour: Strengthening South-South Cooperation

Category: International Relations / Diplomacy

Why in the News?

The Prime Minister of India will undertake a multi-nation tour from July 2 to July 9, 2025, visiting Ghana, Trinidad & Tobago, Argentina, Brazil, and Namibia. The visit focuses on strengthening South-South cooperation, trade ties, and multilateral collaboration.

Country-Wise Focus

Country	Key Agendas
Ghana	Strengthen developmental partnership under ITEC and LOC programs
Trinidad & Tobago	Deepen engagement with the Indian diaspora; energy cooperation
Argentina	Boost trade in lithium, pharmaceuticals, and agriculture
Brazil	Discuss BRICS+ expansion, trade, and defense collaboration
Namibia	Finalize strategic rare earth mineral partnerships

Broader Objectives

Focus Area	Details
South-South Cooperation	Enhancing ties with Global South nations
Diaspora Diplomacy	Engaging Indian-origin communities
Energy Security	Securing critical minerals like lithium and rare earths
Multilateralism	Push for UNSC reforms, G20 South-South agenda

Learning Corner: What is South-South Cooperation?

Economic, social, and political cooperation between countries of the Global South
India's active frameworks: ITEC, IBSA, India-UN Development Partnership Fund

Mains Practice Question

Q. How can India leverage South-South Cooperation to strengthen its diplomatic and economic footprint in Latin America and Africa? (250 words)

RailOne App Launched for Railway Passengers

Category: Infrastructure / Governance

Why in the News?

The Union Railway Minister launched the 'RailOne' mobile application in New Delhi to streamline passenger services and enhance digital engagement with Indian Railways

Features of RailOne App

Feature	Details
Integrated Services	Train bookings, PNR status, live train tracking
Real-Time Info	Platform number updates, train delays, coach position
Ticketing	UTS (Unreserved), reserved, and e-catering services
Multilingual Support	Available in 12 regional languages
Smart AL Chatbot	For customer queries

Significance

Aspect	Explanation
Digital Transformation	Supports Digital India and SMART Railways vision
Passenger Convenience	One-stop platform for all railway services
Efficiency	Reduces dependence on multiple apps (e.g., NTES, IRCTC)

Learning Corner: Key Digital Initiatives in Indian Railways

Initiative	Purpose
IRCTC	Online Ticketing
National Rail Plan	Infrastructure augmentation
Kavach	Indigenous train collision avoidance system

Mains Practice Question

Q. Examine how digital innovations like the RailOne app can improve passenger experience and operational efficiency in Indian Railways. (150 words)

Hyderabad Pharma Unit Accident: Industrial Safety Under Scrutiny

Category: Disaster Management / Governance / Economy

Why in the News?

A deadly industrial accident at the Sigachi Industries' pharma unit in Hyderabad claimed 36 lives, making it one of the worst industrial disasters in Telangana in recent years.

What Happened?

The unit produces Microcrystalline Cellulose (MCC), used widely in pharmaceuticals.
Preliminary reports suggest gas leakage and failure of safety protocols as causes.

Industrial Safety Framework in India

Law / Regulation	Provision
Factories Act, 1948	Workplace safety standards
Environment Protection Act, 1986	Hazardous process control
Chemical Accidents Rules, 1996	Reporting and safety audit mechanisms
National Disaster Management Authority (NDMA) Guidelines	Industrial disaster prevention

Recent Concerns

Issue	Details
Poor Safety Audits	Infrequent third-party safety checks
Worker Casualties	Industrial fatalities in pharma & chemical units rising
Emergency Response	Delay in medical response cited by locals

Past Industrial Accidents

Accident	Year	Impact
Bhopal Gas Tragedy	1984	3000+ deaths
LG Polymer Gas Leak (Vizag)	2020	12 deaths
Neyveli Lignite Blast	2020	13 deaths

Mains Practice Question

Q. Critically assess India's existing industrial safety framework in light of recurring industrial accidents. Suggest reforms. (250 words)

India's Bond Yield Outlook: Softening Trend Expected in July

Category: Economy / Financial Markets

Why in the News?

According to Bank of Baroda (BoB) Research, India's 10-year benchmark Government bond yield is likely to remain soft (lower) in July 2025 due to easing inflation and supportive monetary policy stance.

Why Are Yields Softening?

Factor	Impact
Easing Inflation	CPI inflation trending below 5%
RBI's Accommodative Stance	No immediate rate hikes expected
Global Bond Market Trends	Falling US treasury yields influencing emerging markets
Fiscal Discipline	Reduced borrowing pressure from government

Significance of 10-Year Bond Yield

Benchmark for long-term borrowing costs
Influences corporate bond rates, home loan EMIs, and investment climate

How Bond Yields Work

Bond prices and yields move inversely
Lower yields = Higher bond prices = Cheaper borrowing for government & corporates

Mains Practice Question

Q. Explain how government bond yields reflect broader macroeconomic trends. Discuss the implications of softening yields for India's economy. (150 words)