1. Tamil Nadu Cabinet Approves Key Policy Amendments
Subject: Polity (Tamil Nadu)
- The Tamil Nadu Cabinet, chaired by Chief Minister M.K. Stalin, approved amendments to the Tamil Nadu Space Industrial Policy 2025 to boost investment in space technology.
- The policy aims to attract ₹10,000 crore in investments over five years, positioning Tamil Nadu as a hub for space innovation.
- A new legislative bill was introduced to enhance protections for women, focusing on stricter penalties for gender-based violence.
- The Cabinet approved ₹1,894 crore for the PM MITRA Textile Park in Virudhunagar, aligning with national industrial growth plans.
- Concepts: State List (Seventh Schedule) – States have authority over industrial policies under Entry 24; Federalism – Cooperative efforts between state and central governments for economic development.
- The amendments reflect Tamil Nadu’s proactive governance in aligning with global trends.
2. Union Cabinet Approves Employment Linked Incentive Scheme
Subject: Economy (National)
- The Union Cabinet, led by Prime Minister Narendra Modi, approved the Employment Linked Incentive (ELI) Scheme with a ₹1 lakh crore outlay.
- The scheme targets creating 3.5 crore formal jobs between August 1, 2025, and July 31, 2027, focusing on youth employability.
- It offers a one-month wage subsidy (up to ₹15,000) for new EPFO-registered employees with salaries below ₹1 lakh/month.
- The initiative is part of a ₹2 lakh crore employment-skilling package under PM Gati Shakti.
- Concepts: Fiscal Policy – Government spending to stimulate job creation; Demographic Dividend – Leveraging India’s young workforce for economic growth.
- This move addresses unemployment by incentivizing formal sector hiring.
3. India Strengthens Defence Capabilities with Indigenous Acquisitions
Subject: Defence (National)
- The Defence Acquisition Council (DAC) approved ₹1.05 lakh crore for 100% indigenous defence acquisitions.
- Key approvals include Moored Mines, Mine Counter Measure Vessels, and Quick Reaction Surface-to-Air Missiles (QR-SAM).
- A ₹62,700 crore deal for 156 Prachand Light Combat Helicopters from Hindustan Aeronautics Ltd (HAL) was cleared.
- The DAC operates under the Buy (Indian-IDDM) category, promoting self-reliance in defence manufacturing.
- Concepts: Atmanirbhar Bharat – Emphasis on indigenous defence production; National Security – Strengthening military capabilities amid regional tensions.
- These acquisitions enhance India’s operational readiness and reduce import dependency.
4. India’s Inflation Rate Below RBI Target in 2025
Subject: Economy (National)
- The Finance Ministry’s June 2025 Economic Review projects inflation to remain below the Reserve Bank of India’s 4% target for 2025.
- Stable food prices and effective monetary policies have contributed to this trend.
- The report highlights structural challenges, such as supply chain disruptions, that could pose risks.
- India’s GDP growth is projected to remain robust, supported by government spending and private investment.
- Concepts: Monetary Policy – RBI’s role in controlling inflation through repo rates; Economic Stability – Balancing growth and price control for sustainable development.
- This underscores India’s economic resilience amid global uncertainties.
5. India-Sri Lanka Defence Cooperation Strengthened
Subject: International (National)
- India gifted a replica of the Ashokan Pillar to Sri Lanka’s Waskaduwa Sri Subhuthi Viharaya, symbolizing cultural and defence ties.
- The gesture commemorates Emperor Ashoka’s role in spreading Buddhism, reinforcing India’s soft power diplomacy.
- Bilateral defence talks focused on maritime security and joint exercises in the Indian Ocean Region.
- India pledged support for Sri Lanka’s coastal surveillance systems to counter regional threats.
- Concepts: Neighbourhood First Policy – Prioritizing ties with neighboring countries; Soft Power – Using cultural diplomacy to strengthen international relations.
- This move enhances India’s strategic influence in South Asia.
