1. GST Council Rolls Out NextGen Tax Reforms
Subject: Economy
- The 56th GST Council, chaired by Union Finance Minister Nirmala Sitharaman, implemented new GST rates effective September 22, 2025, slashing rates on diagnostic kits (16% to 5%), UHT milk (5% to 0%), and consumer electronics (31.3% to 18%).
- Tractor rear tyres, irrigation diesel engines, kitchen essentials, and bamboo furniture now taxed at 5%, boosting rural economies in Tamil Nadu’s Erode and Salem.
- Simplified compliance for MSMEs reduces administrative burdens, enhancing business efficiency.
- Tamil Nadu’s textile hubs in Coimbatore and Tiruppur gain from lower input costs, improving export competitiveness.
- The reforms align with India’s Viksit Bharat vision, projecting ₹50,000 crore economic growth through increased investments.
- Concepts: Inverted Duty Structure – Correcting higher taxes on inputs than finished goods to support manufacturing.
2. India-Japan Forge Strategic Partnership for 2025-2035
Subject: International/Defence
- India and Japan launched a Joint Vision for 2025-2035, focusing on economy, technology, energy, and defence cooperation.
- Japan pledged 10 trillion yen investment in India, alongside a human resource exchange involving 5 lakh people.
- India-Japan Digital Partnership 2.0 emphasizes AI, quantum computing, and semiconductor R&D, benefiting Tamil Nadu’s Chennai tech hub.
- Defence ties strengthened with cross-servicing agreements and joint exercises like Dharma Guardian and JIMEX.
- Agreements on space collaboration, clean hydrogen, and wastewater management support sustainable urban projects in Tamil Nadu.
- Concepts: Indo-Pacific Strategy – India’s role in regional security and economic partnerships to counter geopolitical challenges.
3. Tamil Nadu Achieves Record Low Fiscal Deficit
Subject: Economy/Polity
- Tamil Nadu reduced its fiscal deficit to 3%, driven by a GSDP growth rate of 11.19%, showcasing robust financial management.
- The state leads India’s export charts, with Chennai, Coimbatore, and Tiruppur contributing significantly to textiles and automobiles.
- Chief Minister MK Stalin highlighted infrastructure and social welfare investments as key to fiscal stability.
- Aligns with Atmanirbhar Bharat, emphasizing self-reliance and sustainable economic growth.
- Tamil Nadu’s fiscal model supports welfare schemes like Kalaignar Magalir Urimai Thittam for social equity.
- Concepts: Fiscal Deficit – Managing the gap between revenue and expenditure for economic stability.
4. Arur Upgraded to Municipality Status
Subject: Polity/Tamil Nadu
- Arur, previously a town panchayat, was upgraded to a municipality to enhance local governance and infrastructure.
- Tamil Nadu recognized Rajapalayam (first), Rameswaram (second), and Perambalur (third) in the 2025 Best Municipality Awards for urban excellence.
- The upgrade improves Arur’s access to funds for waste management, water supply, and urban planning.
- Tamil Nadu’s urban reforms align with Swachh Bharat Mission and Smart Cities initiatives.
- Concepts: Decentralized Governance – Empowering local bodies for effective administration and development.
- Historical benchmarks: Chennai (1688, India’s first corporation) and Walajapet (1866, first municipality).
5. India’s First Indigenous 32-Bit Semiconductor Chip
Subject: National Issues/Economy
- Vikram Sarabhai Space Centre (VSSC) and Semiconductor Laboratory, Chandigarh, developed India’s first 32-bit chip, Vikram.
- Supports space, defence, and consumer electronics, reducing reliance on imported semiconductors.
- Tamil Nadu’s Sriperumbudur electronics hub benefits, boosting the state’s tech ecosystem.
- Aligns with Atmanirbhar Bharat, enhancing technological sovereignty and job creation.
- Applications include IoT, satellite systems, and smart manufacturing, strengthening India’s tech landscape.
- Concepts: Semiconductor Ecosystem – Critical for self-reliance in strategic and economic sectors.
