On June 10th, 2025, India witnessed key developments in economic growth, defence cooperation, and climate innovation. FDI inflows in 2024–25 are concentrated in states like Maharashtra and Karnataka, supported by new schemes to boost electric car manufacturing. Strategic ties deepen with Mongolia through the 17th ‘Nomadic Elephant’ military exercise. Meanwhile, advanced climate strategies like Stratospheric Aerosol Injection highlight global and national scientific focus.

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.

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:

FM Sitharaman Chairs 6th NIIF Governing Council Meet

Source: PIB

Syllabus: Governance

In News:

• Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, today chaired the sixth meeting of the Governing Council (GC) of the National Investment and Infrastructure Fund (NIIF) in New Delhi.
• The crucial meeting focused on reviewing the fund's robust performance, evaluating its capital raising strategy, and charting the future course for this vital infrastructure financing institution.

Key Highlights of the Meeting

• Review of Fund Performance: The Governing Council assessed the performance of NIIF's various funds, appreciating its growth as a sovereign-linked asset manager. NIIF's Assets Under Management (AUM) have now exceeded ₹30,000 crore (approximately US$4.9 billion), catalysing additional capital worth ₹1.17 lakh crore (₹1,17,000 crore).
• Capital Raising Strategy: Discussions centered on the ongoing capital raising efforts, including the progress of NIIF's upcoming Private Markets Fund II, which targets a corpus of US$1 billion and has already begun onboarding private investors. The Council also reviewed proposals for new avenues of capital raising, including a proposed bilateral fund with the United States.
• Strategic Direction and Growth: The GC deliberated on NIIF's overall strategy, investment status, sector focus, and its future vision. It advised NIIF to enhance its global visibility, adopt a proactive approach to fundraising, and diversify its investor base.
• Acknowledgement of Partnerships: The Council acknowledged NIIF's success in building strong partnerships with prominent sovereign wealth funds (e.g., ADIA, Temasek), pension funds (e.g., AustralianSuper, Ontario Teachers' Pension Plan), and multilateral development banks (e.g., AIIB, ADB, NDB).

Foreign Direct Investment Inflow for 2024-25

Source: The Hindu

Syllabus: GS Paper III (Economy)

IN NEWS

• According to the latest DPIIT (Department for Promotion of Industry and Internal Trade) data from June 2025, Maharashtra and Karnataka together received 51% of all Foreign Direct Investment (FDI) coming into India during the financial year 2024–25 (FY25). This shows that a big chunk of FDI is going to just two states, pointing to differences in how attractive different regions are to investors. 

• India’s total FDI inflow grew by 14%, reaching $81.04 billion, which is the highest in the last three years.

Key Data Points (FY 2024–25)

Here’s a quick look at where the FDI went and how much came in:

Why more than 51% of FDI is concentrated in Maharashtra and Karnataka? 

Several reasons explain why these two states attract so much FDI:

• Substantial Improvement in Infrastructure:
   
  • They have built better industrial zones, places to store and move goods, and improved metro train connections.
  • Better port facilities also help businesses.
  • Smart cities and special freight corridors in Maharashtra, along with strong IT infrastructure in Bengaluru (Karnataka), attract investors.
• Favourable Investment Climate:
   
  • These states have active government policies that help businesses.
  • It's easier to do business here, and they offer "single-window clearances," meaning you can get all permissions from one place.
  • They have Special Economic Zones (SEZs) and rules that are friendly to foreign investors.
• Sectoral Strength:
   
  • Maharashtra is strong in finance, manufacturing, film making, and pharmaceutical industries.
  • Karnataka is famous for its IT (Information Technology), startups, aerospace, and biotechnology industries.
• Urban Ecosystems and Human Capital:
   
  • They have many skilled workers and global talent available.
  • Cities like Bengaluru and Mumbai are leading hubs for new businesses and innovation.

Scheme to Promote Manufacturing of Electric Passenger Cars in India

Source: The Hindu

Syllabus: GS Paper II (Governance)

IN NEWS

• The Ministry of Heavy Industries (MHI) announced new rules for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) in March 2024. This scheme aims to lower customs duty (tax on imported goods) on imported electric four-wheelers. 

• The goal is to encourage both foreign and Indian companies to invest in making electric vehicles (EVs) in India. This comes during discussions about how to balance bringing in new technology, building up local industries, and attracting foreign money.

What is the SPMEPCI? 

The SPMEPCI is a government plan made to encourage investment in making electric four-wheelers in India. It offers lower import duties to companies that promise to make EVs locally and add value to them in India over five years.

Objective

The main goals of this scheme are to support the "Make in India" and "Atmanirbhar Bharat" (Self-Reliant India) initiatives by:

• Attracting large investments to make EVs.
• Reducing how much India relies on importing EVs.
• Increasing the use of new technology and adding value locally in manufacturing.
• Making India a major hub for making electric passenger vehicles.

Key Features of the Scheme

Here are the main points of the SPMEPCI scheme:

• Customs Duty Reduction:
   
  • The import duty on completely built electric four-wheelers (CBUs) is cut from 70–100% down to 15%.
  • This lower duty applies to vehicles that cost $35,000 or more.
• Investment Requirements:
   
  • Companies must promise to invest at least ₹4,150 crore over 3 years to be eligible for the scheme.
• Domestic Value Addition (DVA) Targets:
   
  • Companies need to achieve 25% DVA (meaning 25% of the car's value must be made in India) within 3 years.
  • This target goes up to 50% DVA within 5 years.
• Import Cap:
   
  • A maximum of 8,000 vehicles per year can be imported at the lower duty rate.
  • The total tax money given up by the government under this scheme is capped at ₹6,484 crore.
• Implementation Agency:
   
  • The scheme is managed by the Ministry of Heavy Industries.

Read the article on the New Electric Vehicle Policy 2025!

Technology Sharing Concerns

Some experts worry that this scheme might not fully ensure that foreign companies share their technology with India. They suggest that for real technology transfer, India also needs strong programs for skill development, research and development (R&D), and building a full EV ecosystem, similar to what was seen in countries like China and South Korea.

Other Government Initiatives to Boost EV Ecosystem

The Indian government has several other schemes to help the electric vehicle sector grow. Here's a table summarizing some of them:

Nomadic Elephant Exercise

Source: The Hindu

Syllabus: GS Paper II (International Relations)

IN NEWS

• India and Mongolia are currently holding the 17th edition of their joint military exercise called 'Nomadic Elephant'. 

• This exercise is taking place from May 31 to June 13, 2025, at the Special Forces Training Centre in Mongolia.

Details Related to the Exercise ‘Nomadic Elephant’

This table provides specific information about the 'Nomadic Elephant' exercise:

Other Major Joint Military Exercises by India

India takes part in many joint military exercises with different countries. These exercises help improve cooperation and training. Here's a list of some of them:

Stratospheric Aerosol Injection

Source: The Hindu

Syllabus: GS Paper III (Science & Technology)

IN NEWS

• A new study published in the journal Earth’s Future is looking into a way to cool the planet that is less high up and cheaper than the usual Stratospheric Aerosol Injection (SAI). 

• The study suggests that normal airplanes, with some changes, can be used for SAI in cold and non-tropical regions. This could make the controversial method of geoengineering more possible. 

• The study shows that putting sulfur dioxide at an altitude of 13 kilometers could help cool the planet as much as the Mount Pinatubo volcano eruption did in 1991.

What is Stratospheric Aerosol Injection (SAI)? 

SAI is a proposed way to control the climate by changing how much sunlight reaches Earth. It involves putting tiny shiny particles, like sulfur dioxide, into the stratosphere, which is about 20 kilometers above Earth. These particles then reflect sunlight away from Earth, helping to lower global temperatures. This idea comes from how big volcanic eruptions, like Mount Pinatubo, cause the Earth to cool temporarily because of the tiny particles they release high into the atmosphere.

How is it Done? 

Reflective particles, usually sulfur dioxide (SO2), are released into the stratosphere using different methods:

• Specially designed high-altitude aircraft: These airplanes fly very high, typically above 20 kilometers near the equator.
• Modified existing jets: Regular airplanes, like a Boeing 777F, can be changed to release these particles. This can be done in colder areas (polar and extratropical regions) at lower altitudes, around 13–15 kilometers.

These tiny particles then bounce back some of the sun's rays into space. This reduces the amount of heat reaching the Earth's surface, which helps in cooling the planet.

Solar Climate Intervention Techniques

SAI is one of several methods proposed under Solar Radiation Management (SRM). These methods aim to reflect sunlight to reduce global warming. Here are some other SRM techniques: