On June 21st, 2025, India witnessed important developments across various sectors. The recent World Investment Report 2025 indicates a worldwide decline in foreign direct investment, with India also experiencing a fall in FDI inflows. Concurrently, the World Health Assembly has made a landmark decision, elevating skin diseases to a global public health priority. Domestically, the persistent defence propulsion gap highlights India's reliance on foreign engine manufacturers, as underscored by recent delays in critical engine deliveries.

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:

World Investment Report 2025

Source: The Hindu

Syllabus: GS Paper II (Economy)

IN NEWS 

• The United Nations Conference on Trade and Development (UNCTAD) recently released its annual World Investment Report 2025. This report highlights a continued decline in global Foreign Direct Investment (FDI) for the second consecutive year, attributing this trend to ongoing geopolitical tensions and broad economic uncertainty worldwide. 

• For India, the report indicates a specific concern: its FDI inflows fell by in 2024 to 27.6 billion, raising questions about the diminishing role of FDI in the country's economic development. 

• Furthermore, India’s share of FDI in gross capital formation dropped sharply to 2.3% in 2024, a significant decrease from 8.8% in 2020.

Key Global Data Points from the Report

• Global FDI Decline: Overall global FDI declined by 11% to 1.5 trillion.
• Developing Asia: Remained the largest FDI recipient region globally, but still experienced a 3% drop in inflows.
• China’s FDI: Saw a significant fall of 29% to 116 billion.
• India’s FDI: Declined by 1.8% to 27.6 billion.
• ASEAN Region: Was a positive exception, showing a 10% rise in FDI to 225 billion, indicating its growing attractiveness.
• International Project Finance (IPF): Deals declined globally by 27%.
• Investment in SDG Sectors: Investment in sectors crucial for Sustainable Development Goals (SDGs) experienced sharp falls:
  • Renewables: −31%
  • Infrastructure: −35%
  • Water, sanitation & hygiene: −30%
  • Agrifood: −19%
  • Health and education: +25% (A notable positive trend in these sectors).

India-Specific Data Points

• FDI Inflows (2024): 27.6 billion (down 1.8% from 2023).
• Share of FDI in Gross Capital Formation: Dropped to 2.3% in 2024, a significant fall from 8.8% in 2020. This indicates a reduced contribution of foreign capital to India's overall investment.
• FDI Stock as % of GDP: Stood at 14% in 2024, down from 17.9% in 2020, further signaling a decreasing role of accumulated foreign investment relative to the economy's size.
• Rank in FDI Destination Countries: Despite the decline in absolute inflows, India's rank improved to 15th globally in 2024, suggesting that other countries might have experienced even steeper declines or that India's greenfield projects were more prominent.
• Greenfield Project Announcements: India was ranked 4th globally in terms of greenfield project announcements. The projected capital expenditure for these projects increased by 25% to 110 billion, indicating continued interest in setting up new operations.
• International Project Finance (IPF): India fell to the 5th position with 97 deals, reflecting the global trend of declining IPF.
• Net FDI (excluding repatriation): ~29 billion in FY25 (RBI estimate).
• FDI Equity Inflows: 50 billion in FY25 (DPIIT data), showing a 13% increase, which could signify a rebound or a difference in data compilation (equity component vs. total FDI).
• Major Developments:
  • Microsoft’s 3 billion investment in India’s AI infrastructure.
  • The Walt Disney–Viacom18 3 billion merger, reflecting Disney's exit from certain Indian operations, influencing total FDI figures.

Interpretation from the Data (India)

• Structural Weakening of FDI Dependence: The decreasing ratios of FDI to GDP and FDI to capital formation suggest that foreign capital might be playing a shrinking role in India's overall economic development compared to previous years. This could point towards a shift, either by design or by circumstance, towards greater reliance on domestic capital formation and alternative investment routes.
• Investment Composition Changing: While greenfield projects show growth, the decline in infrastructure and IPF deals indicates a difference in investment patterns. Foreign investors might prefer asset-light investments (those that do not require heavy physical assets) and direct participation in private sector ventures over large-scale infrastructure projects.
• Sectoral and Regional Variance: The high capital expenditure directed towards digital sectors and renewable energy aligns well with India’s national goals for technology-driven growth and transitioning to green energy. Conversely, a fall in manufacturing-linked merger and acquisition (M&A) deals suggests a cautious global investor sentiment towards certain traditional sectors.

WHA's Landmark Resolution on Skin Diseases as Global Public Health Priority

Source: The Hindu

Syllabus: GS Paper III (Science & Technology)

IN NEWS 

• The World Health Assembly (WHA) recently passed a landmark resolution titled "Skin Diseases as a Global Public Health Priority" unanimously. 

• This is a historic moment, as it is the first-ever WHA resolution that officially recognizes skin diseases not just as a cosmetic concern but as a critical global public health issue. 

• This resolution is expected to lead to greater investment, increased policy attention, and significant reduction of stigma associated with dermatological health worldwide.

Details Related to the Resolution (Skin Diseases as a Global Public Health Priority)

• Title: "Skin Diseases as a Global Public Health Priority."
• Adoption: Unanimously adopted by all member states, signifying global consensus on the issue.
• Key Sponsors: The resolution was primarily sponsored by Côte d’Ivoire, Nigeria, Togo, and Micronesia, and received strong support from the International League of Dermatologic Societies (ILDS).
• Objectives: The resolution sets forth clear objectives to address the burden of skin diseases:
  • Integrate Skin Health: To integrate skin health services into primary healthcare systems, making basic dermatological care more accessible at the local level.
  • Increase Investment: To boost funding for research, training, and overall infrastructure related to dermatological diseases.
  • Address Stigma: To actively address and reduce the social stigma often associated with visible skin conditions, especially those prevalent on darker skin tones, ensuring dignified care.
  • Equitable and Culturally Competent Care: To encourage the provision of healthcare that is fair (equitable) and respectful of cultural differences, particularly in how skin conditions are perceived and treated across diverse populations.

Global and National Data on Disease Burden

Global Context

• Prevalence: Approximately 1.9 billion people globally ($ \approx 25%$ of the world population) are affected by skin diseases.
• Common Conditions: These include a wide range of conditions such as fungal infections, psoriasis, eczema, vitiligo, leprosy, and scabies.
• Disproportionate Burden: Low- and Middle-Income Countries (LMICs) bear a significantly disproportionate burden of skin diseases due to limited resources, poor access to care, and other socio-economic factors.
• Persistent Issues: Challenges like social stigma, underfunding for dermatological research and services, and a persistent lack of trained dermatology professionals continue globally.
• Neglected Tropical Diseases (NTDs): Many NTDs, such as leprosy, yaws, and cutaneous leishmaniasis, manifest as skin conditions and are particularly prevalent in resource-poor regions, highlighting the intersection of poverty and disease.

Indian Context

• High Burden: India experiences one of the world’s highest burdens of dermatologic diseases.
• Common Issues in India: This includes a high prevalence of pigmentary disorders, fungal infections, eczema, contact dermatitis, and various chronic inflammatory skin diseases.
• Specific Challenges in India:
  • Shortage of Trained Dermatologists: A critical lack of trained dermatologists, especially at the primary health level in rural and remote areas.
  • High Stigma: Significant social stigma associated with skin conditions, particularly in rural areas and among marginalized communities, leading to delayed treatment and social exclusion.
  • Limited Research on Skin of Colour: Despite India's vast and diverse demographic, there is limited research specifically focused on skin conditions affecting darker skin tones, leading to gaps in understanding and effective treatment protocols.

India’s Defence Propulsion Gap

Source: The Hindu

Syllabus: GS Paper II (Security)

IN NEWS 

• The issue of India’s persistent dependency on foreign engine manufacturers for its defence needs has resurfaced. This comes after General Electric (GE) of the U.S. reportedly delayed the delivery of F404 engines, which are crucial for India's Light Combat Aircraft (LCA) Mk1A program. This delay has caused significant concern within the Indian Air Force (IAF), highlighting a critical strategic vulnerability. 

• Despite ongoing advancements in indigenous airframe, avionics, and electronics for platforms like the Advanced Medium Combat Aircraft (AMCA) and Tejas Mk2, India still notably lacks a fully homegrown, military-grade jet engine.

Know more about the Structure of Indian Armed Forces!

What is the Core Issue with Defence Engines? 

India's core defence problem is a significant gap in its ability to build its own propulsion systems (engines), especially for high-performance jet aircraft.

• Dependency: Despite making progress in other areas like aircraft bodies (airframes), electronic systems (avionics), and digital technology, India still relies heavily on other countries for engines.
• Wider Impact: This dependency doesn't just affect the Indian Air Force (IAF) but also extends to the Army (for tanks) and Navy (for ships and submarines), making it a systemic issue across the armed forces.
• Production & Readiness Affected: Delays in engine supply, foreign countries not sharing full technology, and uncertain supply chains from abroad have seriously slowed down India's own defence production timelines and its readiness for military operations.

Kaveri GTX-35VS Engine (for Tejas LCA)

• Features: It was designed as an afterburning turbofan engine, a type of jet engine capable of producing extra thrust.
• Issues Encountered:
  • Poor Thrust-to-Weight Ratio: The engine was too heavy for the amount of power it could produce, affecting aircraft performance.
  • Thermal Inefficiency: It struggled with heat management at high power settings.
  • Failed Flight Testing: It did not meet the required performance standards during flight tests.
  • Limited Application: Due to these issues, its use was severely limited.
• Cost & Outcome: Around ₹2,032 crore was spent on the project by 2020. However, the Kaveri engine was never successfully inducted into service and the project remains incomplete.