1. Tamil Nadu Passes Bill to Strengthen Urban Local Governance
Subject: Polity
- The Tamil Nadu Legislative Assembly passed the Tamil Nadu Urban Local Bodies (Amendment) Bill, 2025, enhancing the powers of urban local bodies (ULBs) like corporations and municipalities.
- The bill grants ULBs greater authority over urban planning and revenue generation, including property tax reforms.
- It aligns with the 74th Constitutional Amendment, aiming to strengthen municipal governance.
- Chief Minister M.K. Stalin emphasized empowering ULBs to address urban challenges like waste management and infrastructure.
- Concept: Municipal Autonomy – Article 243W empowers states to devolve functions to ULBs for effective urban governance.
- Opposition parties called for capacity-building programs to ensure efficient implementation.
- The bill is expected to boost Chennai’s Smart City projects and improve urban service delivery.
2. India and ASEAN Sign Economic Cooperation Agreement
Subject: International/Economy
- India and ASEAN signed a comprehensive economic cooperation agreement to boost trade by $100 billion by 2030.
- Tamil Nadu’s textile and automobile sectors in Coimbatore and Chennai will benefit from reduced tariffs on exports to ASEAN markets.
- The agreement includes provisions for digital trade and cross-border e-commerce collaboration.
- Concept: Regional Economic Integration – Strengthening trade ties through multilateral agreements to enhance economic growth.
- Challenges include addressing non-tariff barriers and competition from Chinese goods in ASEAN markets.
- The pact strengthens India’s Act East Policy, fostering closer ties with Southeast Asia.
- Tamil Nadu’s MSMEs are expected to see a 10% rise in exports due to this agreement.
3. DRDO Unveils Indigenous Stealth Drone
Subject: Defence
- The Defence Research and Development Organisation (DRDO) successfully tested the Ghatak stealth unmanned combat aerial vehicle (UCAV) off Tamil Nadu’s coast.
- The drone, developed in collaboration with private firms in Chennai, enhances India’s air combat capabilities.
- It supports the Aatmanirbhar Bharat initiative by reducing reliance on foreign defence technology.
- Concept: Self-Reliance in Defence – Promoting indigenous R&D to strengthen national security under the Make in India framework.
- Tamil Nadu’s defence corridor in Hosur will manufacture critical components for the drone.
- Challenges include integrating advanced AI systems and ensuring cost-effective production.
- The test bolsters India’s deterrence strategy in the Indo-Pacific region.
4. Tamil Nadu’s Green Hydrogen Policy Attracts Global Investors
Subject: Economy/Environment
- Tamil Nadu launched its Green Hydrogen Policy 2025, securing ₹3,000 crore in investments for clean energy projects.
- The policy targets 1 GW of green hydrogen production by 2030, with hubs planned in Thoothukudi and Tirunelveli.
- It offers subsidies for green hydrogen startups and incentives for EV adoption in Chennai.
- Concept: Clean Energy Transition – Promoting renewable energy to meet India’s net-zero target by 2070 under SDG 7.
- The state signed MoUs with global firms like Siemens for electrolyser manufacturing.
- Challenges include high production costs and infrastructure development for hydrogen distribution.
- The policy aligns with India’s National Hydrogen Mission, boosting Tamil Nadu’s renewable energy leadership.
5. India Rejects BRICS Proposal on Digital Currency
Subject: International/Economy
- India declined a BRICS proposal to adopt a unified digital currency, citing concerns over monetary sovereignty.
- The decision was announced during the BRICS Finance Ministers’ meeting in São Paulo, Brazil.
- Tamil Nadu’s fintech ecosystem in Chennai expressed support for India’s focus on UPI and digital rupee development.
- Concept: Monetary Sovereignty – Protecting national control over currency and financial systems in global economic frameworks.
- India emphasized strengthening its digital payment infrastructure over adopting external models.
- The rejection may strain ties with BRICS members like China but reinforces India’s independent economic policy.
- Tamil Nadu’s IT sector benefits from continued investment in UPI-based innovations.
