On June 04th, 2025, India marked three significant milestones reflecting its progress across technology, trade, and gender inclusion. India’s net FDI inflows have dropped sharply to just $353 million in FY 2024–25, despite gross inflows of $81 billion. This widening gap points to rising disinvestment, increased outward FDI, and concerns about long-term investor confidence.
Awareness regarding daily UPSC current affairs is crucial for cracking the UPSC Prelims, excelling in UPSC Mains. It helps perform well in the UPSC personality test, thus becoming an informed and effective UPSC civil servant.
Daily UPSC Current Affairs 04-06-2025
Below are the current affairs and headlines of the day taken from The Hindu, Indian Express, Press Information Bureau & All India Radio as required for UPSC preparation:
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Drop in FDI Inflows: Investor Confidence in Question
Source: The Hindu
Syllabus: GS Paper III (Indian Economy – Investment Models, FDI)
IN NEWS
- The RBI Bulletin (May 2025) revealed that net FDI inflows for FY 2024–25 plummeted to just $353 million, despite gross inflows totaling $81 billion.
- This sharp divergence highlights growing concerns over investor confidence and the real nature of foreign capital entering India.
What is Foreign Direct Investment (FDI)?
FDI refers to a long-term investment made by a foreign entity into the productive assets of another country with the intention of controlling or influencing business operations.
Types of FDITypeDescriptionGreenfieldInvestment in new infrastructure or facilitiesBrownfieldAcquisition of existing businesses or assets Key Benefits of FDI
|
Why Has Net FDI Plummeted?
|
Indicator |
FY 2020–21 |
FY 2024–25 |
|
Gross FDI (as % of GDP) |
3.1% |
2.1% |
|
Net FDI (as % of GDP) |
1.6% |
~0% |
|
Gross FDI Value |
Not disclosed |
$81 billion |
|
Net FDI Value |
Not disclosed |
$353 million |
|
PE/VC Share in FDI |
12.2% (2009–10) |
75.9% (2020–21) |
Key Factors Behind the Fall
- Heavy disinvestment and rise in Outward FDI (OFDI) by Indian firms.
- Declining greenfield investments and increase in brownfield/PE-VC funding.
- Reduced FDI-to-GDP and GFCF (Gross Fixed Capital Formation) ratios.
- Suggests capital repatriation, weakening investor sentiment and productive investment.
Significance
- Reflects deeper concerns in India’s business environment.
- Important for analyzing FDI policy effectiveness in Mains GS III.
- Highlights need for reforms to attract stable, long-term investments.
Know more about the Foreign Portfolio Investment FPI!
France’s Nuclear Sharing Proposal Amid European Security Crisis
Source: The Hindu
Syllabus: GS Paper II (International Relations – Security Issues, Treaties); GS Paper III (Security)
IN NEWS
- In May 2025, French President Emmanuel Macron signaled openness to stationing French nuclear weapons in other European countries, reflecting shifting European security concerns post the Russia–Ukraine war and rising doubts about U.S. security guarantees under NATO.
What is Nuclear Sharing?It is a defense arrangement where nuclear weapons are stationed in non-nuclear allied countries under pre-agreed protocols.
|
Why is France Proposing It?
- Part of “European strategic autonomy” vision
- To reduce dependence on U.S. defense guarantees
- Response to Russia’s deployment of tactical nukes in Belarus
- France’s arsenal includes ~290 warheads on SLBMs and Rafale-launched ALCMs
Legal Standpoint
Under the NPT (1968):
- Article I prohibits nuclear transfer to non-nuclear states
- NATO argues peacetime control isn’t transferred
- Critics argue this still violates the spirit of the treaty, especially during crises
Significance
- Could redefine EU’s defense strategy
- Raises debates on nuclear deterrence, sovereignty, and international law
- Potential UPSC GS II question on nuclear non-proliferation and collective security
Ukraine’s Operation Spider’s Web: Deep-Strike Drone Warfare
Source: The Indian Express
Syllabus: GS Paper II (International Relations – Conflict)
IN NEWS
- On June 1, 2025, Ukraine launched a deep strike drone offensive — “Operation Spider’s Web” — targeting five major Russian air bases, marking a dramatic escalation in drone warfare capabilities.
What is Operation Spider’s Web?
- Ukraine’s first covert, long-range drone operation
- Targets included Murmansk, Irkutsk, Ivanovo, Ryazan, and Amur
- Claimed destruction of 41 strategic bombers (e.g. Tu-22M3, Tu-95) and A-50 early-warning aircraft
- Estimated damage: $7 billion
Tactics and Technology
- Used First-Person View (FPV) drones
- Launched from inside Russia via disguised trucks with retractable launch roofs
- Controlled using Russian mobile networks for real-time feedback
- Strikes occurred during daytime, indicating confidence and accuracy
Significance
- Reflects the rise of asymmetric warfare using low-cost drones
- Exposes vulnerability of strategic military assets even deep inside borders
Raises questions on cybersecurity, border control, and air defense readiness
Monthly Current Affairs Compilation
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Monthly Current Affairs |
| UPSC Current Affairs for June 2025 |
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