June 2, 2025 - Current Affairs

India’s First AI-Focused SEZ launched in Nava Raipur To Push India Towards Digital Modernization

June 2, 2025

The government plans to introduce India’s first AI special economic zone (SEZ) in Nava Raipur, Chhattisgarh, for an investment of ₹1,000 crore. RackBank Datacenters in Indore built this AI Special Economic Zone to support AI innovation, development and deployment, making India more competitive in both using and producing new AI solutions.

Context:

In the AI SEZ, Nava Raipur will have state-of-the-art data centers for AI and digital operations which will bring to India industry leaders Google, OpenAI, Microsoft and Meta.
It should help create many high-tech jobs, especially for people living far from big cities and increase digital infrastructure nationwide.

Key Details:

Investment and Infrastructure:
- 6 acres of land costing ₹1,000 crore will build a 1.5 lakh sq. ft. facility.
- 4 data centers built for high density, totaling 80 MW of capacity.
- Stronger technology to handle major AI and digital projects.
Advantages Related to Economics and Regulations:
- Tax breaks and more relaxed regulations are provided by SEZs to help both foreign and domestic AI firms.
- Under the SEZ policy, it will encourage more exports, better investment and creativity.
Having a Global Footprint:
- Anticipated to include the major activities of Google, OpenAI, Microsoft and Meta.
- Shows how India is gradually shifting from being only a user to a creator and provider of AI services.
Social Impact:
- Offers young people living in Kanker, Sukma, Bilaspur and Dantewada a chance to have high-tech jobs.
- Helps lower the number of people moving to big cities and seeking work abroad.
Key programs designed to increase skills:
- Specialized training planned together with ITIs, engineering colleges and polytechnic institutes.
- Gets local citizens ready to become IT engineers, cybersecurity experts, data experts and network managers.

About SEZ in India

What is AI focused SEZ in India?

Such an AI-focused SEZ targets technology and innovation by supporting research, development and selling export-oriented services based on Artificial Intelligence (AI).
Important areas at SEZs involve IT, biotech, pharma, textiles and manufacturing.
The main aim of the SEZ Act 2005 is to encourage exporting, foreign investment, employment and economic activity.

AI-Focused SEZs (New-Age SEZs)

Feature	Details
Purpose	Promote AI research, innovation, and export-oriented tech services.
Example	AI SEZ in Hyderabad, Telangana.
Backed by	State Govt + IndiaAI Mission (₹10,300 crore allocation).
Target Sectors	Robotics, AI healthcare, logistics, ed-tech, agri-tech.
Support System	Data centers, compute capacity, skilling hubs, incubation centers.

Government initiatives for AI in India

IndiaAI Mission (2023): has been approved with a ₹10,300 crore budget to develop computing for AI and research infrastructure.
Partners with Startups: Connects AI startups, universities and leading global AI companies for innovation.
NASSCOM Assists: Helps form and connect AI experts and boost the export of AI-related goods and services.

Importance

Boosting AI exports is expected in India which may support its aim of reaching a $1 trillion digital economy by the year 2026.
Provides new possibilities for employment in AI, offers fellowships for research and helps people skill up.
India’s position in the world AI race is boosted, mainly among developing countries.

Current Status:

There are 379 total notified SEZs.
There are 265 operational SEZs.
Most of the SEZs are located in Tamil Nadu, Telangana, Karnataka, Andhra Pradesh and Maharashtra (which have up to 64% of all SEZs).
Board of approval is the governing body, chaired by Secretary, Department of Commerce

Objectives of SEZ:

Encourage economic growth and trade of exports
Generate employment
Invite foreign and local investment.
Create infrastructure facilities.

Baba Kalyani Committee (2018):

Focus Area	Purpose
WTO Compatibility	Align SEZs with international trade rules.
Best Practices	Adopt global benchmarks for infrastructure, exports, employment.
Outcome Maximization	Improve capacity utilization and boost output.

Conclusion:

Nava Raipur’s AI SEZ works to boost India’s AI influence, improve technological development, speed up growth of digital networks and create jobs for people in regions where work opportunities are needed. It shows India’s effort to make use of new technologies for growing its economy in an inclusive way and creating a separate and reliable digital economy.

UPSC Prelims Question for Practice (MCQ)

Q. Review the claims below about India’s first artificial intelligence-related Special Economic Zone (SEZ):

It will be set up in Hyderabad, Telangana.
RackBank Datacenters has created it using an investment of ₹1,000 crore.
SEZ intends to bring in big AI companies such as Google and OpenAI.

Which of the statements is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

UPSC Mains Question for Practice (MCQ)

Q.1 “Nava Raipur’s SEZ shows India is ready to move from just using AI to building it.” Look at the role SEZs play in promoting digital changes, equitable development and the country’s status in global AI circles. (150 words)

Devi Ahilyabai Holkar Jayanti 2025 celebrated on 31st May

June 2, 2025

On 31 May each year, Ahilyabai Holkar Jayanti is celebrated in India as the anniversary of Rajmata Ahilyabai Holkar, a great ruler and social reformer. It will be her 300th birth anniversary in 2025 which pays tribute to her remarkable service to public affairs, buildings and administration, mainly in Indore and its vicinity. She became famous for governing effectively and fairly, although she was a woman in a patriarchal society.

Context:

In 2025, on 31 May, Ahilyabai Holkar Jayanti is observed to remember her birth, noting her efforts in justice, social care and development.
There will be special celebrations for the occasion, mainly in Madhya Pradesh and Maharashtra.

Key Details:

Who is Ahilyabai Holkar?

Born: on 1725 in Chondi village, Maharashtra
Father: Mankoji Rao Shinde.
Husband: Khanderao Holkar, passed away while fighting in the Battle of Kumbher (1754).
Father-in-law and son: She became the ruler of Indore after the deaths of her father-in-law Malhar Rao Holkar and her son Male Rao Holkar.

Reign and Rule

Took power in Indore after Malhar Rao Holkar died in 1767.
Held the title of "Holkar queen of Malwa" from 1767 to 1795.
She made Tukoji Rao Holkar (the son of Malhar Rao Holkar) her army’s new leader.
Made Maheshwar, in Madhya Pradesh, the center of the Holkar dynasty.
She became famous for governing effectively and fairly, although she was a woman in a patriarchal society.

Key Contributions

Construction of temples:
- Somnath Temple in Gujarat which was attacked in the past by Mahmud Ghazni, Delhi Sultanate and Aurangzeb.
- Kashi Vishwanath Temple in Varanasi.
Supporting Arts and Literature
- Helped the Sanskrit scholar Khushali Ram.
- Supported the Marathi poet Moropant, honored for:
  - Reflections on politics in the stories of the Ramayana and Mahabharata
  - Many Akhyanes have been written by using the Puranas as references.
  - Works of Aryabhata and Kekavati
Supported Shahir Anantaphandi, known for his works of Lavani and Powadas (Marathi folk songs and ballads).

Social Reforms

Supported girls education and widow re-marriage
Acted against the practices of Sati and untouchability.
Fought for the acceptance of Bhil, Gond and low-caste communities into mainstream society.

Economic Development

Established a well-structured tax regime.
Turned Maheshwar and Indore into main centers for trade and business.
Encouraged by the Maheswari weaving industry, Maheshwar sarees and fabrics now have Geographical Indications (GI) tags, making them handicraft goods.

Leadership and Administration

Worked to achieve peace, prosperity and trade in Asia.
Built Dharma-shalas, ghats, wells and places for the rest of pilgrims.
Renovated and restored a significant number of Hindu temples that had been broken by Mughals.
Ensured order, supported the building of infrastructure and supported agriculture.
Justice under her rule was not based on party lines and she involved all prominent groups in her administration.

About Holkar Dynasty

The Maratha Confederacy consisted of many Maratha clans such as:
- Bhonsle of Nagpur
- Gaekwar of Baroda
- Sindhia the ruler of Gwalior
The war of 1817-1819, the Third Anglo-Maratha War, was influenced by the activities of Malhar Rao II during his rule (1811–1833).
As a result of losing the Battle of Mahidpur in 1817, the treaty known as the Treaty of Mandsaur (1818) was agreed upon between the Holkars and the British.

Importance of the Jayanti:

Most significant in Madhya Pradesh and Maharashtra, marked by festivals, praise from the public and organized programs for learning.
Viewing her as an example of excellent leadership and social change.
In 1996, a postal stamp was released in India in Devi Ahilyabai's honor.
The airport in Indore is called Devi Ahilya Bai Holkar Airport.

2025 Event

Extra celebrations and special projects are planned for the 300th birth anniversary.
It was announced by the Maharashtra government that a Rs 681 crore development project would be carried out at the ‘Punyashlok Ahilyadevi Holkar Smarak Sthal’.

Conclusion:

Ahilyabai Holkar Jayanti 2025 highlights the history of one of India’s respected female rulers and also encourages people to think about leadership, justice and social support. The 300th anniversary will help people realize her important influence on India’s history and culture.

UPSC Prelims Sample Question (MCQ)

Q.1 Considering the role of Ahilyabai Holkar, look at these statements:

She had the Somnath and Kashi Vishwanath temples rebuilt.
She promoted Sati and did not support widow remarriage.
Textiles and trade were key in Maheshwar due to her leadership.

Which of the above statements is/are correct?

A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2 and 3

UPSC Mains Sample Question

Q. “Ahilyabai Holkar’s leadership is seen as an example of good governance, effective administration and cultural revitalization”. Mention notable achievements of Ahilyabai Holkar in restoring temples, reforming society and improving the region.(150-200 words)

Is India the World’s Fourth Largest Economy?

June 2, 2025

By 2025, thanks to the IMF forecast, India’s nominal gross domestic product (GDP) is expected to surpass Japan and make India the fourth-largest economy in the world. The milestone has received notice from the nationals as well as other countries. But by itself, economic size does not completely reflect a country’s actual wealth and progress. Arguing about India’s GDP position highlights the need to thoughtfully review how economies get compared and to focus on income per person, social aspects and general well-being.

Context:

Although India’s gross domestic product (GDP) is projected to exceed Japan’s GDP by 2025, the metric does not highlight differences in wealth, living and social conditions.
By looking at Purchasing Power Parity (PPP) and several measures of human development, one can better assess both the progress and challenges in India.

Key Points

Detailed Analysis:

Differences between Nominal GDP and PPP
- India currently ranks 4th in the world by GDP (in 2024).
- India has been at the third position globally by Purchasing Power Parity (PPP) since 2009.
- GDP is valued using exchange rates in the market which can be fixed or fluctuating, causing an unclear view.
- PPP accounts for the cost of living- it gives a clearer picture of how much money people can actually use.
Major gaps exists in per capita income
- The per capita GDP in India (2024) is estimated to be around $2,711 which is considered a lower-middle-income country.
- Countries like Sri Lanka and Bhutan have more income per person than India.
- Even if a country has large GDP does not mean everyone is wealthy, income is frequently distributed unevenly.
Employment structure and Informality
- About 45% of the workforce is still involved in low-productivity agriculture.
- Only 23.9% of Sri Lankans have formal wage employment which is much lower than the >80% average in developed countries.
- The fact that the informal sector rules means jobs are less secure, there is no social protection and earnings are likely to fluctuate.
Human Development and Social Indicators
- Countries such as Poland, Japan are further ahead in terms of development than India.
  - Life expectancy
  - Infant mortality
  - Education enrollment
- Gross Enrolment Ratio (GER) in tertiary education is still quite low.
- The United Nations Development Programme (UNDP) places India in the "Medium HDI” category.
Lack of Details in Using GDP to Measure Development
- GDP ignores:
  - Unpaid domestic workers
  - Environmental degradation
  - Income inequality
  - Standard of living
- highlights may cover up issues and differences in society.
Political and Narrative Impacts
- Government narrative highlights GDP rise as a symbol of success.
- Some experts warn: Relying just on rankings can hide the reality of poverty, inequality and unemployment in different countries.
Rising demand for Inclusive Growth
- Actual development means there is growth, equity and dignity.
- Strategies should start with:
  - Good health & proper nutrition
  - Education quality
  - Skilled employment
  - Social protection Systems
- Spending on people is key to making growth sustainable and open to all people.

About GDP

Definition of Gross Domestic Product(GDP)

Gross Domestic Product (GDP) is the overall value of goods and services made by the country within its borders during a specific time, commonly measured over one financial year.
It counts all products made by companies, foreign or local, inside the country.

How is GDP calculated?

The value of all final products and services produced in a specific country over a given period is called its Gross Domestic Product (GDP).

Three Methods to Calculate GDP:

Method	Description
Production Method	GDP = Gross Value Added (GVA) by all sectors + Taxes – Subsidies on products
Income Method	GDP = Compensation to employees + Operating surplus + Mixed income + Taxes – Subsidies
Expenditure Method	GDP = C + I + G + (X – M) where: C = Consumption, I = Investment, G = Govt Expenditure, X = Exports, M = Imports

India primarily uses a combination of production and expenditure methods.

Difference Between Nominal GDP and GDP (PPP)

Feature	Nominal GDP	GDP (PPP)
Definition	GDP measured using current market exchange rates	GDP adjusted for purchasing power parity (PPP)
Reflects	Market value of goods/services in USD	Real domestic buying power of local currency
Volatility	High — affected by currency fluctuations	Low — relatively stable over time
India’s Global Rank	4th (2024)	3rd since 2009
Useful For	International financial comparisons, debt, trade	Comparing living standards, real productivity
Limitation	Can underestimate poorer countries with cheaper goods	May overstate economic clout if not converted into actual trade power

Effects and Implications

Aspect	Nominal GDP	GDP (PPP)
Perception of Global Power	Shows ability to transact internationally	Reflects size of domestic economy
Policy Planning	Important for fiscal, monetary, and external sector policies	Useful in poverty, inequality, and welfare analysis
International Loans	Creditworthiness assessed via nominal GDP	Less relevant for external borrowing
Human Development Metrics	May look better on nominal scale	Aligns better with ground realities
Media Narratives	Often highlights nominal ranks	PPP provides context on actual living standards

Conclusion:

India now ranks highly in the world economy based on nominal GDP, but this is not enough to reflect all aspects of its development. For true development to occur, economic size should go together with increased per capita income, better job quality, better health, improved education and equal social rights. Government leaders ought to promote growth that helps everyone and invest heavily in people to make sure India’s economic growth helps all of its citizens. To reach its aspirations, India must shift its focus past simple GDP numbers.

India 2nd Position in Asian Athletics Championships 2025 in Gumi, South Korea

June 2, 2025

The Indian team ended the 26th Asian Athletics Championships in Gumi, South Korea, with great success, winning 24 medals, their greatest medal count in a foreign meeting in 40 years. Important silver and bronze medals on the final day meant India came second in the medal tally, behind China. Remarkable performances were made by Sachin Yadav in the javelin, Parul Chaudhary in running events and India’s women in the 4x100m relay.

Context:

The 8 gold, 10 silver and 6 bronze medals India won at the Asian Athletics Championships mark the best-ever showing overseas by India in 40 years.
Sachin Yadav, Parul Chaudhary and India’s 4x100m relay team all took home silver medals.

Key Highlights:

Overview

India won 24 medals in Tokyo (8 Gold, 10 Silver, 6 Bronze), its biggest collection of medals at any international event held in 40 years.
Finished in 2nd place, after China (32 medals), at the 26th Asian Athletics Championships.
Best performance outside the United States previously was at the 1985 Jakarta event (22 medals, 10 in Gold).

India’s performance at the Asian Athletics Championships 2025

The Asian Athletics Championships 2025 took place in Gumi, Republic of Korea, from 27th May to 31st May 2025.
More than 60 athletes participated from India.
India participated in 30 different medal events:
- 15 competitions for men
- 14 competitions for women
- 1 Team event made up of mixed genders
India finished 2nd in the overall medal tally.
Most of the medals were won by China.
24 medals were won by India.
- 8 Gold
- 10 silver
- 6 Bronze

Historic Significance

It was the best-ever performance on Chinese ground in the past 40 years.
Shows the country’s ability to do well in multiple track and field events.
Having mixes of both experienced athletes and rising talents points to India’s ability to perform in global sports events.

Asian Athletics Championships

Organised by: The Asian Athletics Association (AAA)
First time held: in 1973, Manila, Philippines
Frequency: Biennial (once every two years).
Aim: The purpose is to advance track and field athletics in Asian countries and give elite athletes a chance to compete.
Participants: Over 40 Asian nations send athletes who participate in running, jumping and relay events during the games.
Events: Events feature races for both men and women as well as mixed teams in sprints, hurdles, jumping, throwing events, relays and longer distance events.

Asian Athletics Championship 2025, Gumi (South Korea) – Medal Tally

Indian Medallists at Asian Athletics Championship 2025

Rank	Athlete / Team	Event	Medal
1	Gulveer Singh	Men’s 10000m	Gold
2	Team India (Santosh, Rupal, Vishal, Subha Venkatesan)	Mixed 4x400m Relay	Gold
3	Avinash Sable	Men’s 3000m Steeplechase	Gold
4	Jyothi Yarraji	Women’s 100m Hurdles	Gold
5	Team India (Jisna, Rupal, Rajitha, Subha Venkatesan)	Women’s 4x400m Relay	Gold
6	Gulveer Singh	Men’s 5000m	Gold
7	Pooja Singh	Women’s High Jump	Gold
8	Nandini Agasara	Heptathlon	Gold
9	Rupal Chaudhary	Women’s 400m	Silver
10	Pooja	Women’s 1500m	Silver
11	Praveen Chithravel	Men’s Triple Jump	Silver
12	Tejaswin Shankar	Decathlon	Silver
13	Team India (Jay Kumar, Dharmveer, Manu TS, Vishal TK)	Men’s 4x400m Relay	Silver
14	Ancy Sojan	Women’s Long Jump	Silver
15	Parul Chaudhary	Women’s 3000m Steeplechase	Silver
16	Sachin Yadav	Men’s Javelin Throw	Silver
17	Parul Chaudhary	Women’s 5000m	Silver
18	Team India (Srabani, Abinaya, Sneha SS, Nithya Gandhe)	Women’s 4x100m Relay	Silver
19	Servin Sebastian	Men’s 20km Race Walk	Bronze
20	Yoonus Shah	Men’s 1500m	Bronze
21	Shaili Singh	Women’s Long Jump	Bronze
22	Animesh Kujur	Men’s 200m	Bronze
23	Pooja	Women’s 800m	Bronze
24	Vithya Ramraj	Women’s 400m Hurdles	Bronze

List of Host Cities – Asian Athletics Championship

Year	City	Country
2017	Bhubaneswar	India
2019	Doha	Qatar
2021	Hangzhou	China
2023	Bangkok	Thailand
2025	Gumi	South Korea
2027	Xiamen	China
2029	Surakarta	Indonesia

Conclusion:

With 24 medals, including 8 golds won at the Asian Athletics Championships, India’s progress in athletics is very clear. New stars such as Sachin Yadav and Parul Chaudhary, together with good teamwork, promise a promising future for Indian athletics globally.

UPSC Prelims Practice Question

Q. Read about 26th Asian Athletics Championships held in 2025 based on the given statements:

It was held in Tokyo, Japan.
India achieved its greatest medal count in a track and field competition held outside the country.
Sachin Yadav and Parul Chaudhary won first place in their events.

Which statement given above is/are true?

(a) 1 and 2 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Thailand’s Opal Suchata Chuangsri Crowned Miss World 2025

June 2, 2025

Opal Suchata Chuangsri from Thailand won the title of Miss World 2025 in a grand finale in Hyderabad, Telangana. She ended up being the winner of a competition with 107 participants. She is the first Miss World from Thailand. The occasion was viewed by many and the current Miss World, Krystyna Pyszkova of the Czech Republic, gave the crown to her successor.

Context

Thailand’s Opal Suchata Chuangsri was chosen as Miss World 2025 which makes her the first person from Thailand to be crowned at the event.
The Miss World 2025 event took place in Hyderabad, India.

Key Details:

Winner and Runner-up

Winner: Opal Suchata Chuangsri (Thailand) was named Miss World 2025.
Runner-up: There were two finalists and Hasset Dereje Admassu (Ethiopia) came in second.

Details of the event

Organized: June 1, 2025, in Hyderabad, Telangana, India.
Former Miss World 2024, Krystyna Pyszkova (Czech Republic), gave the crown to the new winner.

India’s Performance:

Nandini Gupta was representing India and was eliminated before the Top 8.
In 2024, Sini Shetty from India advanced to the Top 8, though she was not among the final four.
India previously held the Miss World crown for six times and the last time was with Manushi Chhillar.

Previous Host and Winners

Never before in Miss World’s 73-year past has the same country hosted the competition for back-to-back years, after the pageant in Mumbai in 2024
Krystyna Pyszkova came first in 2024, outperforming Lebanon, Trinidad and Tobago and Botswana.

Conclusion:

Thailand has made history with Opal Suchata Chuangsri’s victory in Miss World 2025 as it adds a fresh chapter into the international pageant scene. The event highlighted the skills of performers from various countries and encouraged India’s place as a main host in the industry today.