Current Affairs: July 2, 2025 – A Comprehensive Guide for Competitive Exams

On July 2, 2025, India witnessed a flurry of significant developments across multiple sectors, each carrying weight for aspirants preparing for UPSC, SSC, Banking, and other government exams. This article, meticulously crafted from credible sources such as The Hindu, The Indian Express, Times of India, Business Standard, Press Information Bureau (PIB), Reuters, and others, provides an in-depth and engaging overview of the day’s events. Structured to maximize readability and retention, it covers critical topics like economic trends, governance reforms, international relations, defense advancements, environmental challenges, technological breakthroughs, and sports achievements. With bolded key terms and a storytelling approach, this resource aims to give students a competitive edge.

Economic Landscape: Balancing Growth and Challenges

The Indian economy presented a complex picture on July 2, 2025. The Goods and Services Tax (GST) collections for June 2025 reached ₹1.85 lakh crore, marking a 6.2% increase from June 2024 but an 8.2% decline from May 2025, according to The Hindu (source). This slowdown, the lowest growth rate since June 2021, signals potential challenges, possibly driven by geopolitical uncertainties and shifting consumer sentiment. Notably, regions like Nagaland, Sikkim, and Lakshadweep showed robust GST growth, highlighting regional disparities.

In a bold move to address unemployment, the Union Cabinet approved the Employment-Linked Incentive (ELI) Scheme, with an allocation of ₹99,446 crore to generate 3.5 crore jobs between August 1, 2025, and July 31, 2027 (source). This scheme, part of the Union Budget 2024-25, offers incentives like one month’s wage up to ₹15,000 for first-time employees and up to ₹3,000 per month for employers hiring additional staff, particularly in the manufacturing sector. This initiative underscores the government’s commitment to formal job creation, a critical topic for exam aspirants.

The Reserve Bank of India (RBI) introduced a borrower-friendly reform by prohibiting pre-payment charges on floating rate loans for individuals and Micro and Small Enterprises (MSEs), effective January 1, 2026 (source). This applies to commercial banks, NBFC-Upper Layers, and other financial institutions, covering loans up to ₹50 lakh for smaller entities. The move aims to simplify lending and enhance borrower flexibility, a significant development for banking exam candidates.

Stock markets reflected caution, with the BSE Sensex closing at 83,409.69, down 287.60 points (0.34%), and the Nifty 50 at 25,453.40, down 88.40 points, as reported by The Hindu Business Line (source). Sectors like realty and financials, including Bajaj Finance and HDFC Life, saw declines of around 2%. However, optimism around potential India-U.S. trade deals led to a positive opening the next day, indicating market resilience (source).

Inflation trends, though not updated for July, showed retail inflation at a 75-month low of 2.8% in May 2025, driven by declining food prices, according to The Economic Times (source). However, states like Goa (6.8%) and Kerala (6.5%) reported higher rates, reflecting regional variations. The Statistics Ministry plans to release state-level inflation data for individual items in the new Consumer Price Index (CPI) series by early 2026, a move supported by the RBI to enhance transparency (source).

Politics and Governance: Strengthening Systems

The political and governance sphere was abuzz with significant developments. The Supreme Court directed the Andhra Pradesh government to submit a sealed inquiry report on an illegal mining scam involving former YSR Congress Party MLA Vallabhaneni Vamsi Mohan, as reported by The Hindu (source). Allegations include fraudulent mining permits causing a ₹195.04 crore loss to the public exchequer between 2019 and 2024. The state challenged a High Court order granting anticipatory bail to Mohan, with the next hearing set for July 17, 2025. This case highlights ongoing efforts to combat corruption, a key governance topic.

Home Minister Amit Shah described the implementation of new criminal laws as the most significant reform since India’s independence (source). These laws aim to modernize the justice system, enhancing efficiency and accessibility, a critical point for UPSC aspirants studying legal reforms.

The Chief Election Commissioner launched a drive to identify individuals with multiple voter IDs, as per The Hindu (source). This initiative aims to ensure electoral integrity, a vital aspect of democratic governance and a frequent exam topic.

International Relations: Asserting India’s Global Stance

India’s global engagement was prominent on July 2, 2025. At the Quad Foreign Ministers-level meeting in Washington DC, External Affairs Minister S. Jaishankar asserted India’s right to defend itself against terrorism, emphasizing zero tolerance and the distinction between victims and perpetrators (source). He highlighted India’s commitment to a rules-based international order and a free and open Indo-Pacific, with India set to host the next Quad leaders’ summit. This stance is crucial for understanding India’s role in global forums like the Quad, G20, and BRICS.

Additionally, Foreign Secretary Vikram Misri met Mauritius leaders, reaffirming strong bilateral ties, as reported by All India Radio (source). This diplomatic outreach strengthens India’s position in the Indian Ocean region, a key area for international relations studies.

Defense: Bolstering Self-Reliance

The Indian Navy marked significant milestones in defense. The induction of the second indigenous stealth frigate, INS Udaygiri, under Project 17A, was completed in a record 37 months, showcasing India’s advanced shipbuilding capabilities (source). Equipped with a sophisticated weapon suite, including supersonic missiles and a 76 mm gun, this frigate enhances India’s maritime strength. The commissioning of INS Tamal, the last foreign-built Navy ship, signals a shift toward self-reliance, as reported by The Hindu (source).

Environment: Addressing Critical Challenges

Environmental concerns took center stage with a deepening groundwater crisis in Karnataka’s hard rock terrain, particularly near Bengaluru, as reported by The Hindu (source). The average depth of drinking water borewells increased from 183 meters (2001-2011) to 321 meters (2011-2021), with 55% of wells failing due to depleting aquifers. Water-intensive farming exacerbates the issue, prompting calls for sustainable practices and initiatives like the Sujala Project and Jal Jeevan Mission.

In wildlife conservation, efforts to improve the tiger gene pool in **Simlipalව

Science & Technology: Pioneering Digital and Space Frontiers

The Digital India initiative celebrated its 10-year milestone, transforming India into a digitally empowered society, as highlighted by Prime Minister Narendra Modi (source). Internet connections surged from 25 crore to over 97 crore, with 42 lakh kilometers of optical fiber laid under BharatNet. The Unified Payments Interface (UPI) handles over 100 billion transactions annually, nearly half of global real-time digital payments. The SVAMITVA initiative issued over 2.4 crore digital property cards, and platforms like ONDC and GeM have boosted local entrepreneurs, with GeM achieving ₹1 lakh crore in gross merchandise value in just 50 days. India’s digital tools, including Aadhaar, CoWIN, and DigiLocker, are now global models, with a repository launched during India’s G20 presidency to aid other nations.

In space exploration, the Axiom-4 mission, featuring Indian astronaut Shubhanshu Shukla, is providing critical inputs for the Gaganyaan mission, India’s first indigenous human spaceflight program (source). Insights into crew integration, medical preparation, and experiment execution are shaping Gaganyaan’s planning, with an uncrewed test flight targeted for Q4 2025 and a crewed flight by Q1 2027. Shukla carried cultural items designed by the National Institute of Design, Ahmedabad, symbolizing India’s heritage in space.

Sports: Celebrating Indian Excellence

In sports, Shubman Gill’s unbeaten 114 guided India to 310-5 on the first day of the second Test match against England in Birmingham, despite the absence of Jasprit Bumrah, as reported by Reuters (source). This gritty performance under new captain Gill highlights India’s resilience in cricket, a sport of immense national interest.

The Indian women’s football team secured a commanding 5-0 victory over Iraq in the AFC Asian Cup Qualifiers, showcasing their growing prowess, according to ESPN (source). In chess, Grandmaster Gukesh defeated Praggnanandhaa in the Grand Chess Tour in Croatia, reinforcing India’s dominance in the sport (source).

Conclusion: A Roadmap for Exam Success

The events of July 2, 2025, offer a rich tapestry of developments critical for competitive exam aspirants. From economic policies like the ELI Scheme to governance reforms, international diplomacy, defense milestones, environmental challenges, technological leaps, and sporting triumphs, these updates provide a holistic view of India’s dynamic landscape. By understanding these topics, students can gain a significant advantage in their preparations, ensuring they are well-equipped to tackle questions on current affairs with confidence.

Citations:

• The Hindu
• The Indian Express
• Times of India
• Business Standard
• Press Information Bureau
• Reuters
• Forbes India
• Techlusive
• ESPN
• Sportstar

Daily quiz on current affairs with answers English 3 july 2025

Question 1: What major decision did the Reserve Bank of India take to enhance borrower flexibility from January 1, 2026?
Option 1: Raised repo rate to combat inflation
Option 2: Mandated banks to offer fixed-rate home loans
Option 3: Prohibited pre-payment charges on floating rate loans for individuals and MSEs
Option 4: Launched a new digital currency platform
Option 5: Reduced CRR requirements for NBFCs
Answer: Option 3
Explanation: The RBI announced that starting January 1, 2026, no pre-payment charges will be allowed on floating rate loans for individuals and Micro & Small Enterprises (MSEs). This applies to banks and NBFCs for loans up to ₹50 lakh. It is a consumer-friendly measure aimed at promoting transparency and ease of switching lenders, crucial for improving access to affordable credit.

Question 2: Who did the Supreme Court of India ask to submit a sealed inquiry report in the ₹195 crore illegal mining case?
Option 1: Andhra Pradesh Government
Option 2: Central Bureau of Investigation
Option 3: Enforcement Directorate
Option 4: Election Commission
Option 5: Ministry of Mines
Answer: Option 1
Explanation: The Supreme Court directed the Andhra Pradesh government to file a sealed inquiry report in a case involving former YSR Congress MLA Vallabhaneni Vamsi Mohan. Allegations relate to fraudulent mining permits causing a ₹195.04 crore loss. This case reflects judicial oversight on corruption and governance accountability.

Question 3: Who scored a match-winning 114* for India in the second Test against England on July 2, 2025?
Option 1: Virat Kohli
Option 2: KL Rahul
Option 3: Shubman Gill
Option 4: Ruturaj Gaikwad
Option 5: Rohit Sharma
Answer: Option 5
Explanation: Shubman Gill, newly appointed as captain, scored an unbeaten 114 runs against England, leading India to a strong total of 310-5 on Day 1 of the second Test in Birmingham. His innings was pivotal, especially with Jasprit Bumrah missing from the lineup. This performance highlights leadership under pressure.

Question 4: What diplomatic statement did External Affairs Minister S. Jaishankar make at the Quad meeting in Washington DC?
Option 1: Called for complete nuclear disarmament
Option 2: Asserted India’s right to self-defense against terrorism
Option 3: Opposed permanent membership for China in UN Security Council
Option 4: Announced India’s exit from the Indo-Pacific coalition
Option 5: Proposed a global maritime peace corridor
Answer: Option 2
Explanation: At the Quad Foreign Ministers’ meeting, Jaishankar reiterated India’s right to defend itself against terrorism, emphasizing zero tolerance and distinguishing between victims and perpetrators. This reaffirms India’s proactive foreign policy and strategic autonomy in global forums like Quad.

Question 5: What was the key environmental concern reported in Karnataka on July 2, 2025?
Option 1: Coastal erosion in Udupi district
Option 2: Deforestation in Western Ghats
Option 3: Deepening groundwater crisis in hard rock areas
Option 4: Increase in man-animal conflicts in Bandipur
Option 5: High urban air pollution in Bengaluru
Answer: Option 3
Explanation: The groundwater crisis in Karnataka, especially around Bengaluru, has intensified. Average borewell depths have increased from 183 meters to 321 meters in two decades, with 55% of wells failing. Causes include over-extraction and water-intensive farming. The report calls for sustainable water use and better aquifer management.

Question 6: What initiative did the Chief Election Commissioner launch recently?
Option 1: Campaign for voter registration among youth
Option 2: Drive to identify individuals with multiple voter IDs
Option 3: VVPAT awareness campaign
Option 4: Initiative to digitize voter rolls
Option 5: Electoral campaign expenditure audit system
Answer: Option 2
Explanation: The Chief Election Commissioner began a nationwide initiative to identify and eliminate multiple voter IDs held by individuals. This effort aims to enhance electoral integrity and eliminate fraudulent entries, ensuring free and fair elections.

Question 7: What is the Employment-Linked Incentive (ELI) Scheme’s total budget allocation?
Option 1: ₹75,000 crore
Option 2: ₹85,950 crore
Option 3: ₹92,340 crore
Option 4: ₹96,000 crore
Option 5: ₹99,446 crore
Answer: Option 5
Explanation: The ELI Scheme, approved by the Union Cabinet, has an allocation of ₹99,446 crore and aims to generate 3.5 crore jobs over two years. It includes incentives for hiring first-time employees and for employers hiring additional workers, especially in manufacturing, targeting formal job creation.

Question 8: Which Indian astronaut is involved in the Axiom-4 mission that contributes to the Gaganyaan program?
Option 1: Rakesh Sharma
Option 2: Rajeev Bhargava
Option 3: Shubhanshu Shukla
Option 4: Gagan Saxena
Option 5: Aryan Srivastava
Answer: Option 3
Explanation: Shubhanshu Shukla is part of the Axiom-4 mission, contributing crucial inputs to India’s Gaganyaan program. His mission provides insights into crew integration, medical safety, and in-orbit experiments. The first uncrewed Gaganyaan flight is scheduled for Q4 2025, with a crewed mission in early 2027.

Question 9: What significant milestone did the Digital India initiative reach by July 2025?
Option 1: Launched India’s own operating system
Option 2: Introduced nationwide AI surveillance
Option 3: Achieved over 97 crore internet connections
Option 4: Distributed 10 crore tablets to students
Option 5: Created 100% fiber coverage in rural India
Answer: Option 1
Explanation: The Digital India initiative reached over 97 crore internet connections, with a vast optical fiber network and record UPI transactions. It has transformed India into a digitally empowered society. Other achievements include SVAMITVA property cards, ONDC support, and GeM’s explosive growth in merchandise value.

Question 10: What naval ship was recently inducted under Project 17A and completed in a record 37 months?
Option 1: INS Satpura
Option 2: INS Shivalik
Option 3: INS Himgiri
Option 4: INS Udaygiri
Option 5: INS Vindhyagiri
Answer: Option 4
Explanation: INS Udaygiri, the second stealth frigate under Project 17A, was inducted into the Indian Navy. Built in just 37 months, it showcases India’s growing shipbuilding capacity. Equipped with advanced weapons, it strengthens maritime security and reflects the “Aatmanirbhar Bharat” vision in defense.