29 May 2025 Current Affairs

NDA MLAs Seek to Form Government in Manipur

Key Points from the News:

1. 10 MLAs (8 BJP, 1 NPP, 1 Independent) met Governor Ajay Kumar Bhalla on May 22, 2025, at Raj Bhavan, Imphal.

2. They claimed the support of 44 MLAs in the 60-member Manipur Assembly to form a “popular government”.

3. Manipur is currently under President’s Rule since February 13, 2024 due to ongoing ethnic unrest.

4. The MLAs discussed:

• Law and order situation.
• Initiating peace talks.
• Strengthening security arrangements.

5. Former CM N. Biren Singh also met the Governor earlier to highlight actions on illegal immigration and ethnic unrest.

6. The move came amid protests led by COCOMI (Meitei civil group) over an incident involving a government bus during the Shirui Lily Festival.

7. COCOMI demanded:

• Apology from Governor.
• Resignation of Chief Secretary, Security Advisor, and DGP.

Background: Manipur at a Glance

1. Became a full-fledged state in 1972.

2. Merged with India in 1949.

3. Major ethnic groups: Meitei (valley), Kuki-Zo and Nagas (hills).

4. Ongoing conflict since May 3, 2023 between Meiteis and Kuki-Zo over issues of:

• Land rights.
• ST status.
• Illegal migration from Myanmar and Bangladesh.
• Violence has led to over 200 deaths and the displacement of thousands.

Role of the Governor in State Politics

1. Appointed by the President under Article 155.

2. Powers:

• Appoint CM.
• Recommend President’s Rule under Article 356.
• Summon/dissolve Assembly.
• Reserve bills for President’s assent.
• In Manipur’s context, Governor Ajay Kumar Bhalla has been overseeing governance under President’s Rule.

Anti-Defection Law (Tenth Schedule)

1. Introduced by the 52nd Constitutional Amendment Act, 1985.

2. Objective: Prevent political defections and ensure stability.

3. A legislator is disqualified if:

• Voluntarily gives up party membership.
• Defies party whip during voting.

4. Decision lies with Speaker of Assembly.

5. 91st Amendment (2003) disallowed mass defections (merger only valid if 2/3rd MLAs defect).

Assembly Math in Manipur:

1. Total seats: 60

2. NDA claims: 44 MLAs

3. Opposition/non-supporting MLAs include:

• Kuki-Zo MLAs (10), largely boycotting Assembly since 2023 ethnic violence.

IIP Growth Falls to 2.7% in April 2025

(a) Date Released: June 2025
(b) Source: Ministry of Statistics and Programme Implementation (MoSPI)

Key Highlights from April 2025 IIP Report:

1. Overall IIP Growth:

• Slowed to 2.7%, the lowest in 8 months.
• Last seen lower in August 2024, when IIP was at 0.0% (no growth).

2. Sector-Wise Performance:

• Mining & Quarrying: -0.2% (worst since August 2024)
• Electricity: +1.1% (lowest growth in 8 months)
• Primary Goods: -0.4% (contraction after steady growth)
• Manufacturing: +3.4% (three-month high)
• Infrastructure & Construction: Growth slowed
• Consumer Non-Durables: -1.7% (third consecutive quarter of contraction)
• Consumer Durables: +6.4% (three-month high)
• Capital Goods: +20.3% (very strong growth, up from 2.81% in April 2024)

3. Reasons for Sectoral Trends:

• Capital Goods: Boosted by electrical & non-electrical machinery; helped by low base effect.
• Consumer Durables: Aided by a good rabi crop, marriage season, and auto sector growth (+15.4%).

4. Expert View:

• Madan Sabnavis (Chief Economist, Bank of Baroda):

“20.3% growth in capital goods is impressive, but sustainability of this trend depends on a broader investment pickup.”

Static GK: Index of Industrial Production (IIP)

Lokpal Clears SEBI Ex-Chief in Hindenburg-Adani Case

Key Developments

1. Clean Chit by Lokpal:

• Madhabi Puri Buch, former SEBI Chairperson, was cleared of all allegations related to the Hindenburg-Adani case.
• Case disposed by full Bench of the Lokpal, headed by Justice A.M. Khanwilkar.

2. Complaint Nature:

• Three complaints were filed alleging corruption and inaction by SEBI during the Adani-Hindenburg episode.
• Lokpal noted: Allegations were based on “presumptions and assumptions” without verifiable material.

3. Lokpal’s Verdict:

• Complaints did not attract ingredients of offences under Part III of the Lokpal Act, 1988.
• Hindenburg’s report, dated 10 August 2024, alone cannot be a ground for action.
• The Bench found the accusations “untenable, unsubstantiated, and bordering on frivolity.”

4. On Inquiry Scope:

• At the complaint stage, the Lokpal only checks if any cognisable offence is disclosed — not full verification.

5. Significance:

• Relief for SEBI, whose credibility was questioned amid political and financial controversy.
• Validated procedural safeguards and judicious handling of public complaints against regulators.

Static GK Add-Ons

1. SEBI (Securities and Exchange Board of India)

 2. Lokpal of India

3. Hindenburg-Adani Controversy (Short Note)

4. Famous Indian Stock Market Scams (Very Short Recap)

RBI Remittances Survey — Key Trends & Challenges

Key Points from RBI’s Sixth Remittances Survey (2023–24)

1. Record Inward Remittances:

• $118.7 billion in 2023–24 — highest ever, surpassed FDI inflows, financed over half of India’s trade deficit.

2. Shift in Remittance Sources:

• Advanced Economies (AEs) now dominate.
• US share rose to 27.7%, overtaking GCC countries whose combined share fell to 37.9%.
• Reflects shift from low-skilled Gulf migrants to high-skilled professionals in AEs.

3. Implications of Skilled Migration:

• AEs offer stable income and less volatility.
• But migrants may remit less over time due to economic integration abroad.

4. High-Value Transaction Surge:

• Transfers above ₹5 lakh = 29% of remittance value, but just 1.4% of total transactions.
• Suggests dominance of wealthier diaspora, but also vulnerability to policy shifts in host countries.

5. Rise in Digital Remittances:

• 73.5% of transactions done digitally.
• Costs reduced to 4.9%, below global average (6.65%) but still above SDG target of 3%.
• Countries like UAE (76.1%) and Saudi Arabia (92.7%) have high digital usage; Germany (55.1%), Italy (35%) lag behind.

6. Sub-National Disparities:

• Kerala, TN, Maharashtra = 51% of remittance receipts.
• Bihar, UP, Rajasthan = <6%.
• Highlights inequity in migration infrastructure — e.g., language training, overseas job links.

7. Data Gaps:

• Survey lacks insights on household use of remittances — consumption vs savings/investment.
• Future policy can focus on:

- Savings-linked remittance schemes

- Financial literacy programs

- Investment incentives for recipient households

Static GK: Reserve Bank of India (RBI)

Subsidiaries of RBI

How India Improved Forex after the 1991 Balance of Payments Crisis

Key Takeaway /Current Affairs

• Remittances are now more than just a flow of money — they are a macro-stabiliser, a developmental tool, and a reflection of India’s global diaspora transformation.
• Understanding India's economic diplomacy, skilling strategies, and digital infrastructure is key to interpreting remittance and forex policy trends.

U.S. Crackdown on Foreign Students — Harvard vs. Trump Administration

Key Developments (2024–25)

1. Trump Bans Foreign Students at Harvard (from 2025–26):

• Administration claims Harvard fosters “anti-Semitism” and “Chinese Communist Party links.”
• Demands ideological vetting, end of DEI programs, and access to international student data.

2. Federal Funding Freeze:

• $2 billion in grants & contracts frozen for non-compliance.
• Harvard now facing threat of losing further $100 million in contracts by June 6.

3. Legal Pushback by Harvard:

Harvard has filed a lawsuit against:

• Funding freeze
• Foreign student ban
• Intrusive demands for data & ideological vetting

4. Immigration Chaos for Students:

• Indian MBA student Shreya Mishra reports SEVIS termination, visa issues, and deportation threats.
• Harvard’s access to SEVIS (Student & Exchange Visitor Information System) records revoked.

5. U.S. Embassy Warning to Indian Students:

• New advisory warns that dropping out or non-attendance may lead to visa cancellation and ineligibility for future visas.

6. Nationwide Visa Crackdown:

• Internal order halts new student visa interviews.
• Plan to implement social media vetting for all new international students.

7. Broader Assault on Elite Institutions:

• Trump targeting universities for being “unpatriotic” or “ideologically hostile.”
• Columbia University accused of caving to pressure; contrast with Harvard’s legal stand.

8. Chilling Effect on U.S. Higher Education:

• Universities across U.S. fear being next target.
• Foreign students contribute $38 billion annually and fill key roles in STEM fields.

9. Impact on Academic Freedom:

• Rising fears of political interference in admissions, faculty hiring, and campus expression.
• Long-term threat to academic freedom and U.S. university prestige.

10. Geopolitical and Legal Stakes:

• Case could shape future of immigration, free speech, and educational diplomacy. 
• May affect India–U.S. relations in higher education and brain drain dynamics.

Static GK: U.S. Student Visas & Relevance

Key Takeaways/Legal GK

• Legal Themes: Academic freedom, immigration policy, constitutional rights, contract law.
• Global Relevance: U.S. visa policies directly impact Indian student mobility and economic ties.
• Judicial Implications: Harvard’s lawsuit could set precedent for federal overreach on educational institutions.