On July 11th, 2025, India & the world witnessed important developments across various sectors. From innovative financial instruments like Cat Bonds addressing climate risks, to strengthening bilateral ties exemplified by India-Namibia relations, and India's strategic outreach to the Global South, the international landscape is rapidly evolving. Concurrently, advancements in naval indigenization with the induction of INS Nistar highlight India's growing self-reliance. These diverse developments offer crucial insights for UPSC aspirants.

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:

💰 Cat Bond

Source: The Hindu

Syllabus: GS Paper III (Economy)

IN NEWS: Catastrophe Bonds (Cat Bonds) are gaining attention as a financial tool to manage post-disaster recovery costs. This comes in the context of increased climate risks and disaster exposure, especially across South Asia. Experts have suggested that India could become a lead sponsor of a regional Cat Bond for South Asia. This initiative aims to strengthen disaster resilience across the region.

🔑 Features of Cat Bonds

• Sponsor: Typically a sovereign nation or a large institution. The sponsor pays a premium to the investors and clearly defines the specific disaster thresholds that would trigger a payout.
• Investor: These are global investors who take on the risk of losing their principal. In return, they receive attractive, high coupon rates as compensation for this risk.
• Intermediary: Agencies like the World Bank, Asian Development Bank (ADB), or reinsurance companies often facilitate the issuance of Cat Bonds. They help connect sponsors with investors and reduce counter-party risk.
• Trigger Mechanism: Cat Bonds are usually 'parametric'. This means the payout is based on pre-agreed, measurable parameters. Examples include a specific earthquake magnitude, a certain wind speed for a cyclone, or a defined rainfall level for floods.
• High Returns: The coupon rates offered on Cat Bonds are generally higher than those of typical bonds. This higher return compensates investors for the unique risk involved (e.g., 1–2% for lower-risk events like earthquakes, but significantly higher for cyclones or floods).
• Limited Correlation: A key benefit for investors is that the returns from Cat Bonds are largely uncorrelated with traditional financial markets. This offers a valuable opportunity for portfolio diversification, as their performance is tied to natural events rather than economic fluctuations.

🇮🇳 Utility of Cat Bonds for India

India faces high disaster risks, experiencing frequent floods, cyclones, earthquakes, and forest fires. Despite this, insurance penetration remains low, leaving vast populations financially vulnerable after disasters. A sovereign-sponsored Cat Bond could offer several benefits for India:

• Safeguard Public Finances: It can provide a rapid influx of funds, protecting government budgets from the massive and unpredictable costs of post-disaster recovery.
• Attract Global Capital: It allows India to attract global capital specifically to hedge against natural disaster risks, diversifying its funding sources for resilience.
• Complement Existing Efforts: It can complement India’s current disaster mitigation efforts, which are estimated at around $1.8 billion per year.

India can also promote a South Asian Cat Bond, creating a regional financial instrument for shared disaster risks:

• Earthquakes: Relevant for countries like India, Nepal, and Bhutan.
• Cyclones/Tsunamis: Relevant for India, Bangladesh, Maldives, Sri Lanka, and Myanmar.

🇮🇳🇳🇦 India–Namibia Relations

Source: The Hindu

Syllabus: GS Paper II (International Relations)

IN NEWS: Prime Minister Narendra Modi recently paid a state visit to Namibia. During his visit, he was conferred Namibia’s highest civilian award, the “Order of the Most Ancient Welwitschia Mirabilis.” Key agreements were signed covering digital finance, healthcare, entrepreneurship, and multilateral climate and energy partnerships.

✅ Key Outcomes of the Visit

The recent visit yielded significant results, strengthening cooperation across various sectors:

• Bilateral Agreements and MoUs:
  • Entrepreneurship Development Centre (EDC): An MoU was signed to establish an EDC aimed at empowering Namibia’s youth and its Micro, Small, and Medium Enterprises (MSME) sector.
  • Health and Medicine: Cooperation was announced for cancer treatment, specifically involving India’s Bhabhatron radiotherapy machine. India also offered to integrate Namibia into its Jan Aushadhi scheme, providing access to affordable generic medicines.
• Digital Cooperation:
  • UPI Adoption: Namibia became the first country globally to sign a licensing agreement to adopt India’s Unified Payments Interface (UPI) digital payments technology. This initiative aims to enhance financial inclusion and digital public infrastructure across Africa.
• Global Climate and Infrastructure Partnerships: Namibia formally joined several key Indian-led global initiatives:
  • Coalition for Disaster Resilient Infrastructure (CDRI).
  • Global Biofuels Alliance.
  • International Big Cats Alliance.
  • International Solar Alliance.

🗣️ Key Points from PM Modi’s Address to the Namibian Parliament

• PM Modi addressed a joint session of Namibia’s Parliament, affirming India’s commitment to Namibia’s democratic and developmental aspirations.
• He paid tribute to Namibia’s founding father, Dr. Sam Nujoma, acknowledging his deep historical ties with India.
• It was announced that the 2027 Cricket World Cup will be co-hosted by South Africa, Zimbabwe, and Namibia, highlighting regional cooperation.
• India pledged support for Namibia’s youth through the new Entrepreneurship Development Centre.
• PM Modi noted Namibia's contribution to India's conservation efforts, specifically their help in reintroducing cheetahs to Kuno National Park.
• He also mentioned India's "Aarogya Maitri” initiative, which supports Africa with hospitals, equipment, medicines, and training.

📊 Sectoral Overview of India–Namibia Cooperation

• Economic Relations: Bilateral trade stands at over $800 million, with significant potential for expansion in sectors like mining, energy, agriculture, and pharmaceuticals. Namibia is rich in strategic minerals such as uranium, copper, and diamonds, which are crucial for India’s clean energy and industrial sectors.
• Capacity Building and Development Finance: Over 1,700 Namibians have been trained in India under various programs like ITEC (Indian Technical and Economic Cooperation) and ICCR (Indian Council for Cultural Relations) programmes. India has also extended Lines of Credit to Namibia for infrastructure development, education, and IT initiatives, supporting its growth.
• Technological & Digital Infrastructure: India is actively assisting Namibia in its digital transformation journey through knowledge sharing and technology-based partnerships. The introduction of UPI in Namibia sets a precedent for India’s digital diplomacy and its role in promoting digital public infrastructure across the African continent.
• Health and Education: India provides assistance in establishing IT and healthcare centers in Namibia. There are growing opportunities for collaboration in telemedicine, the supply of generic drugs, and vocational training, leveraging India's expertise in these areas.
• Environment and Conservation: The Cheetah Reintroduction Project serves as a flagship initiative, where African cheetahs from Namibia were successfully translocated to Kuno National Park in India. This cooperation in wildlife conservation and biodiversity has become a significant aspect of India’s soft power projection.
• Defence and Security: Cooperation includes training and capacity-building for Namibian defence personnel in Indian institutions. There is also a growing interest in expanding ties in areas such as maritime security and anti-terror cooperation, addressing shared security challenges.

🌍 Global South

Source: The Indian Express

Syllabus: GS Paper II (International Relations)

IN NEWS: Prime Minister Modi’s diplomatic tour from July 2–9, 2025, included visits to Brazil, Ghana, Trinidad & Tobago, Argentina, and Namibia. This extensive outreach has been strategically framed as a major initiative towards the Global South. This outreach occurs against a backdrop of significant geopolitical shifts, including India’s recalibrated stance on the Israel-Gaza conflict, increased cooperation within BRICS, and the recent 'Voice of the Global South' summits hosted by India. India’s nuanced statements in BRICS declarations concerning Palestine, Iran, and terrorism reflect its efforts to balance strategic partnerships (such as with Israel) with its aspirations for leadership within the Global South.

📈 Characteristics of the Global South

Nations of the Global South generally share several common characteristics:

• Economic Underdevelopment: They often exhibit low per capita income, high levels of poverty, and significant unemployment.
• Demographic Trends: Typically, these nations have young populations and experience high population growth rates.
• Post-colonial Legacies: The historical experience of colonial exploitation has often left them with fragile institutions and embedded them within inequitable global economic structures.
• Resource Rich, Technology Poor: While many possess abundant natural resources, they often have limited industrialization and technological advancement.
• Vulnerability to Climate Change: Despite having low historical carbon footprints, these regions are highly exposed and vulnerable to climate change impacts and natural disasters.
• Limited Global Influence: They are often under-represented in major global decision-making forums, such as the UN Security Council, the International Monetary Fund (IMF), and the World Trade Organization (WTO).

🇮🇳 Why is India Raising Concerns of the Global South?

India has strategically positioned itself as a leading voice for the Global South for several reasons:

• Historical Legacy: India has a long-standing tradition of championing the cause of the Global South, dating back to the Nehruvian era and the Non-Aligned Movement.
• Strategic Autonomy: Leading the Global South reinforces India’s foreign policy vision of strategic autonomy and a multipolar world order, where power is distributed among multiple centers.
• Soft Power Projection: By advocating for developing nations, India gains significant goodwill and strategic leverage among countries in Africa, Latin America, and Asia.
• Countering China: This leadership role also serves as a means of competing with China’s growing influence in various parts of Africa and Latin America.
• G20 Presidency (2023): During its G20 Presidency in 2023, India made the “voice of the Global South” a core theme, actively bringing their concerns to the forefront of global economic discussions.

✅ Examples of India’s Global South Initiatives

India has undertaken several concrete initiatives to support and lead the Global South:

• Voice of the Global South Summits (2023 & 2024): India hosted these summits to gather inputs and perspectives from developing nations on various global issues.
• Solar Mini-Grids and International Solar Alliance (ISA): India promotes solar energy solutions and co-founded the ISA to accelerate solar energy deployment globally, benefiting many Global South nations.
• Development Partnerships and Lines of Credit: India extends significant development assistance and Lines of Credit to various countries in Africa and other developing regions for infrastructure and capacity building.
• Digital Public Infrastructure (DPI) Exports: India is actively promoting the adoption of its successful DPI models, such as UPI-based payment systems, in countries like Namibia and Mauritius, fostering digital transformation.
• Vaccine Maitri: During the COVID-19 pandemic, India supplied vaccines to numerous countries, particularly in the Global South, under its Vaccine Maitri initiative.
• Humanitarian Assistance and Disaster Relief (HADR) missions: India frequently undertakes HADR missions to provide assistance to countries affected by natural disasters, especially in its extended neighborhood.

🚢 INS Nistar

Source: The Hindu

Syllabus: GS Paper II (Security)

IN NEWS: The Indian Navy formally inducted INS Nistar, its first indigenously designed and built Diving Support Vessel (DSV). The vessel was constructed by Hindustan Shipyard Limited (HSL), Visakhapatnam. The induction marks a significant milestone in India’s naval indigenisation efforts and its pursuit of self-reliance (Atmanirbhar Bharat) in shipbuilding.

🔑 Key Features of INS Nistar

📚 National Achievement Survey (NAS)

Source: The Hindu

Syllabus: GS Paper II (Governance)

IN NEWS: The results of the 2025 National Achievement Survey (NAS) were recently released. Himachal Pradesh, which ranked 21st in 2021, made a remarkable leap to enter the top five performing states. This significant rise is attributed to comprehensive reforms in public education implemented by the state government. This success has sparked national interest in understanding and replicating Himachal Pradesh's education models.

✅ Objectives of NAS

• Assess Learning Outcomes: To evaluate students’ competency levels in core subjects such as Language, Mathematics, Environmental Science (EVS), Science, and Social Science.
• Policy Inputs: To provide actionable, evidence-based data to central and state governments. This data is crucial for informed educational planning and policy formulation.
• Diagnostic Tool: To identify specific learning gaps, highlight regional disparities in educational achievement, and understand demographic trends. This helps improve classroom instruction and overall school performance.
• Monitor Educational Progress: To align national education goals with global benchmarks, particularly UN Sustainable Development Goal (SDG) 4, which focuses on Quality Education.

📊 Key Details from the NAS 2025 Survey

• Top Performing States: Punjab, Kerala, and Tamil Nadu maintained their top positions. Himachal Pradesh showed a remarkable improvement, rising from 21st position in 2021 to enter the top five performing states.
• Performance Metrics: Student achievement was evaluated based on their scores in core subjects and composite scores across different class levels.
• Concerns Identified: The survey highlighted a nationwide dip in mathematical reasoning and reading comprehension skills among students in Class 8 and Class 10, indicating areas needing urgent attention.
• Urban-Rural Gap: The gap in learning outcomes between urban and rural areas showed marginal improvement but remains a significant challenge, particularly in aspirational districts and tribal regions.

🔑 Key Features of NAS

🎯 Question No. 1

A Catastrophe Bond (Cat Bond) is a financial instrument that primarily allows:

(a) Governments borrow money from the IMF for disaster relief.

(b) Insurance companies transfer market risk to bond investors.

(c) Governments or institutions to transfer disaster risk to global investors.

(d) Investors to gain high returns correlated with stock market performance.

✅ Correct Answer: (c)

ℹ️ Explanation: The "What is a Catastrophe Bond (Cat Bond)?" section states: "It allows governments or institutions to transfer disaster risk (like floods, cyclones, earthquakes) to global investors by issuing a tradable security."

🎯 Question No. 2

Which of the following Indian initiatives did Namibia formally join during PM Modi's 2025 visit?

1. Coalition for Disaster Resilient Infrastructure (CDRI)
2. Global Biofuels Alliance
3. International Solar Alliance

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

✅ Correct Answer: (d)

ℹ️ Explanation: The "Key Outcomes of the Visit" section, under "Global Climate and Infrastructure Partnerships," lists Namibia formally joining CDRI, Global Biofuels Alliance, and International Solar Alliance (along with International Big Cats Alliance).

🎯 Question No. 3

The term "Global South" is primarily a:

(a) Strict geographic classification for countries south of the Equator.

(b) Political and economic construct highlighting shared experiences of colonialism and underdevelopment.

(c) Military alliance formed after the Cold War.

(d) Group of nations with high per capita income and advanced technology.

✅ Correct Answer: (b)

ℹ️ Explanation: The "What is the Global South?" section states: "It is not strictly a geographic classification, but a political and economic construct highlighting shared historical experiences of colonialism, underdevelopment, and marginalisation in global governance."

🎯 Question No. 4

INS Nistar, recently inducted by the Indian Navy, is primarily designed as a:

(a) Stealth frigate for anti-submarine warfare.

(b) Aircraft carrier for power projection.

(c) Diving Support Vessel for complex underwater operations.

(d) Ballistic missile submarine for strategic deterrence.

✅ Correct Answer: (c)

ℹ️ Explanation: The "IN NEWS" section states: "The Indian Navy formally inducted INS Nistar, its first indigenously designed and built Diving Support Vessel (DSV)." The "What is a Diving Support Ship (DSS)?" section further confirms its role.

🎯 Question No. 5

The National Achievement Survey (NAS), now known as PARAKH RS, is conducted by which of the following bodies?

(a) NITI Aayog

(b) CBSE

(c) Ministry of Education through NCERT

(d) UGC

✅ Correct Answer: (c)

ℹ️ Explanation: The "What is NAS/PARAKH RS?" section states: "It is conducted by the Ministry of Education (formerly MHRD) through the NCERT."

🎯 Question No. 6

Which of the following is a characteristic feature of Catastrophe Bonds (Cat Bonds)?

(a) Their returns are highly correlated with traditional financial markets.

(b) Payouts are based on subjective assessments of disaster damage.

(c) They offer high coupon rates to compensate investors for risk.

(d) They are primarily used by individuals to insure their homes.

✅ Correct Answer: (c)

ℹ️ Explanation: The "Features of Cat Bonds" section states: "High returns: Coupon rates are higher than typical bonds to compensate for the risk." It also clarifies that "Returns are uncorrelated with financial markets" and "payout is based on pre-agreed parameters," not subjective assessments.