DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 3rd September – 2025
rchives (PRELIMS Focus) Vikram 32 Category: SCIENCE AND TECHNOLOGY Context: Prime Minister Narendra Modi received the first Made in India Vikram 32-bit chip at Semicon India 2025, marking a milestone in the country’s semiconductor industry. The Vikram 32-bit Processor, an upgraded version of the earlier 16-bit VIKRAM1601 microprocessor, was developed by ISRO’s Vikram Sarabhai Space Centre and the Semiconductor Laboratory, Chandigarh. It has been used in ISRO’s launch vehicles since 2009 for space flight and avionics. Union Minister Ashwini Vaishnaw presented the chip to PM Modi, along with 31 prototype chips developed by IITs and NITs. India currently has five semiconductor units under construction, one pilot line completed, and two more units set to begin production soon. This achievement strengthens India’s position as an emerging semiconductor hub, boosting global confidence in its technology sector. Learning Corner: The Vikram 32-bit chip is India’s first indigenously developed 32-bit microprocessor for space applications. It is an advanced version of the earlier VIKRAM1601 (16-bit) processor and has been developed by ISRO’s Vikram Sarabhai Space Centre in collaboration with the Semiconductor Laboratory, Chandigarh. The chip is specifically designed for space flight and avionics systems in ISRO’s launch vehicles and has been in operational use since 2009. Its development marks a major step in India’s semiconductor self-reliance, showcasing the country’s ability to design and manufacture high-end processors for critical sectors like space technology. The presentation of this chip at Semicon India 2025 highlights India’s growing semiconductor ecosystem and its strategic push to become a global manufacturing hub. Source: THE HINDU Maitree Category: DEFENCE Context : The 14th edition of the India-Thailand joint military exercise Maitree-XIV began on September 1, 2025, at the Joint Training Node in Umroi, Meghalaya Participants: 120 personnel from India’s Madras Regiment and 53 from Thailand’s 1st Infantry Battalion, 14th Infantry Brigade. Focus: Counter-terrorist operations in semi-urban terrain under UN Charter Chapter VII, including tactical drills, joint planning, special arms skills, fitness, and raiding operations. Significance: Strengthens defence ties, interoperability, and mutual trust, culminating in a 48-hour validation exercise simulating real-world scenarios. Background: Started in 2006, Exercise Maitree remains a key bilateral initiative enhancing defence cooperation and regional strategic partnership between India and Thailand. Learning Corner: Major military exercises of India Exercise Partner / Participants Type Focus / Objective Maitree Thailand Army Counter-terrorism, semi-urban/jungle warfare, interoperability. Garuda Shakti Indonesia Army (Special Forces) Counter-insurgency, counter-terrorism, jungle survival. Shakti France Army Counter-terrorism in semi-urban and high-altitude conditions. Surya Kiran Nepal Army Counter-insurgency, disaster response, humanitarian assistance. Nomadic Elephant Mongolia Army Counter-insurgency, peacekeeping, and desert warfare. Hand-in-Hand China Army Counter-terrorism and humanitarian assistance under UN mandate. Yudh Abhyas USA Army Counter-insurgency, counter-terrorism, and peacekeeping operations. Indra Russia Tri-services Counter-terrorism, peacekeeping, and joint operations. Sampriti Bangladesh Army Counter-terrorism and disaster management. Ajeya Warrior United Kingdom Army Counter-terrorism and joint tactical operations. Garuda France Air Force Air-to-air combat, interoperability, strategic cooperation. Cope India USA Air Force Air combat tactics, strategic airlift, and joint operations. Indo-Russian Avia Indra Russia Air Force Air defence, ground attack coordination. Varuna France Navy Maritime security, anti-submarine warfare, and interoperability. Malabar USA, Japan, Australia Navy (Quadrilateral) Maritime security, freedom of navigation, and Indo-Pacific cooperation. JIMEX Japan Navy Maritime security, anti-submarine warfare, and joint tactical manoeuvres. Simbex Singapore Navy Anti-submarine warfare, maritime security, and sea control operations. Konkan United Kingdom Navy Maritime security, anti-piracy, and naval cooperation. MILAN Multinational (Indian Ocean, Indo-Pacific) Navy (Multilateral) Maritime cooperation, interoperability, and regional security. Source: PIB BHARATI initiative Category: ECONOMICS Context: APEDA has launched the BHARATI initiative (Bharat’s Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement) to accelerate India’s agri-food exports Focus: Promoting innovation, incubation, and export opportunities in GI-tagged products, organic foods, superfoods, livestock, and AYUSH items. Features: A three-month acceleration programme covering product development, export readiness, market access, regulatory compliance, and solutions for perishability, logistics, and value addition. Technology: Integration of AI-based quality control, blockchain traceability, IoT-enabled cold chains, agri-fintech, and sustainable packaging. Impact: Nationwide awareness campaigns and a scalable incubation model to boost India’s global standing in agri-food exports through technology and entrepreneurship. Source: PIB Bond yields Category: ECONOMICS Context Bond yields in India have risen despite RBI’s rate cuts due to structural and market factors that outweigh policy easing. Heavy Government Borrowing: The 2025–26 Budget projects net borrowing of ₹11.55 lakh crore, creating oversupply of bonds and pushing yields higher. Fiscal Concerns: Rising debt (₹17.55 lakh crore in March 2025, projected to ₹19.01 lakh crore in March 2026) and deficit worries make investors demand higher returns. Liquidity Management: RBI injected liquidity but absorbed it through Variable Rate Reverse Repo (VRRR) auctions, sending mixed signals and limiting the effect of rate cuts. Weak Demand & Global Factors: Banks, insurers, and foreign investors have shown lower appetite, while global bond yields remain elevated. Risk Premium: Despite low inflation (below 2% in July 2025), investors seek a premium amid fiscal and global uncertainties. The yield–repo spread has widened to around 100 basis points, the largest in 2025. Learning Corner: Relation between bond yields and rate cuts: Normal Case – When Rate Cuts Lower Yields Suppose RBI’s repo rate is 6%, and the government issues a 10-year bond with a coupon (interest) of 7%. If RBI cuts the repo rate to 5%, new loans and bonds will generally offer lower returns (closer to 5–6%). Investors now rush to buy the older bond paying 7%, raising its price. Since Yield = (Coupon ÷ Price) × 100, higher price → lower yield. Example: Bond with ₹1,000 face value paying ₹70 annually (7%). If demand pushes its price to ₹1,100 → Yield = 70 ÷ 1100 = 6.36% (lower than before). Exceptional Case – Why Yields May Rise Despite Rate Cuts RBI again cuts repo rate from 6% → 5%. But suppose the government announces huge borrowing (₹11.5 lakh crore). That means more bonds will be supplied in the market. Investors worry about fiscal deficit and demand higher return to hold these extra bonds. Even though RBI cut rates, bond prices may fall due to oversupply and risk concerns. Example:
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